Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 15, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PGRE | ||
Entity Registrant Name | PARAMOUNT GROUP, INC. | ||
Entity Central Index Key | 1,605,607 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 212,112,137 | ||
Entity Public Float | $ 3,064,713,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Rental property, at cost | ||
Land | $ 2,042,071 | $ 2,042,071 |
Buildings and improvements | 5,610,046 | 5,488,168 |
Rental property, at cost | 7,652,117 | 7,530,239 |
Accumulated depreciation and amortization | (243,089) | (81,050) |
Rental property, net | 7,409,028 | 7,449,189 |
Real estate fund investments | 416,438 | 323,387 |
Preferred equity investments | 53,941 | |
Investments in unconsolidated joint ventures | 7,102 | 5,749 |
Cash and cash equivalents | 143,884 | 438,599 |
Restricted cash | 41,823 | 55,728 |
Marketable securities | 21,521 | 20,159 |
Deferred rent receivable | 77,792 | 8,267 |
Accounts and other receivables, net of allowance of $365 and $333 in 2015 and 2014, respectively | 10,844 | 7,692 |
Deferred charges, net of accumulated amortization of $15,961 and $10,859 in 2015 and 2014, respectively | 93,905 | 39,165 |
Intangible assets, net of accumulated amortization of $143,987 and $20,509 in 2015 and 2014, respectively | 511,207 | 669,385 |
Other assets | 6,658 | 13,121 |
Total assets | 8,794,143 | 9,030,441 |
LIABILITIES AND EQUITY | ||
Notes and mortgages payable | 2,941,524 | 2,852,287 |
Revolving credit facility | 20,000 | |
Due to affiliates | 27,299 | 27,299 |
Loans payable to noncontrolling interests | 45,662 | 42,195 |
Accounts payable and accrued expenses | 102,730 | 93,472 |
Dividends and distributions payable | 25,067 | |
Deferred income taxes | 2,533 | 2,861 |
Interest rate swap liabilities | 93,936 | 194,196 |
Intangible liabilities, net of accumulated amortization of $41,931 and $3,757 in 2015 and 2014, respectively | 179,741 | 219,228 |
Other liabilities | 45,101 | 43,950 |
Total liabilities | $ 3,483,593 | $ 3,475,488 |
Commitments and contingencies | ||
Paramount Group, Inc. equity: | ||
Common stock $0.01 par value per share; authorized 900,000,000 shares; issued and outstanding 212,112,137 and 212,106,718 shares in 2015 and 2014, respectively | $ 2,122 | $ 2,122 |
Additional paid-in-capital | 3,802,858 | 3,851,432 |
Earnings (less than) in excess of distributions | (36,120) | 57,308 |
Accumulated other comprehensive loss | (7,843) | |
Paramount Group, Inc. equity | 3,761,017 | 3,910,862 |
Noncontrolling interests in: | ||
Consolidated joint ventures and funds | 651,486 | 685,888 |
Operating Partnership (51,660,088 and 51,543,993 units outstanding in 2015 and 2014, respectively) | 898,047 | 958,203 |
Total equity | 5,310,550 | 5,554,953 |
Total liabilities and equity | $ 8,794,143 | $ 9,030,441 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Accounts and other receivables, allowance | $ 365 | $ 333 |
Deferred charges, accumulated amortization | 15,961 | 10,859 |
Intangible assets, accumulated amortization | 143,987 | 20,509 |
Intangible liabilities, accumulated amortization | $ 41,931 | $ 3,757 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 212,112,137 | 212,106,718 |
Common stock, shares outstanding | 212,112,137 | 212,106,718 |
Operating partnership, units outstanding | 51,660,088 | 51,543,993 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | ||
REVENUES: | |||
Rental income | $ 57,465 | $ 586,530 | |
Tenant reimbursement income | 5,865 | 50,885 | |
Fee and other income | 2,805 | 24,993 | |
Total revenues | 66,135 | 662,408 | |
EXPENSES: | |||
Operating | 26,011 | 244,754 | |
Depreciation and amortization | 34,481 | 294,624 | |
General and administrative | 2,207 | 42,056 | |
Acquisition and transaction related costs | 10,355 | ||
Total expenses | 62,699 | 591,789 | |
Operating income (loss) | 3,436 | 70,619 | |
Income from real estate fund investments | 1,412 | 37,975 | |
Income from unconsolidated joint ventures | 938 | 6,850 | |
Unrealized gain on interest rate swaps | 15,084 | 75,760 | |
Interest and other income (loss), net | (179) | 871 | |
Interest and debt expense | (43,743) | (168,366) | |
Formation related costs | (143,437) | ||
Gain on consolidation of an unconsolidated joint venture | 239,716 | ||
Net income before income taxes | 73,227 | 23,709 | |
Income tax expense | (505) | (2,566) | |
Net income | 72,722 | 21,143 | |
Less net (income) loss attributable to noncontrolling interests: | |||
Consolidated joint ventures and funds | (1,488) | (26,632) | |
Operating Partnership | (13,926) | 1,070 | |
Net (loss) income attributable to common stockholders | $ 57,308 | $ (4,419) | |
(LOSS) INCOME PER COMMON SHARE - BASIC: | |||
(Loss) Income per common share | $ 0.27 | $ (0.02) | |
Weighted average shares outstanding | 212,106,718 | 212,106,718 | |
(LOSS) INCOME PER COMMON SHARE - DILUTED: | |||
(Loss) Income per common share | $ 0.27 | $ (0.02) | |
Weighted average shares outstanding | 212,107,908 | 212,106,718 | |
DIVIDENDS PER COMMON SHARE | [1] | $ 0.419 | |
[1] | Includes the $0.039 cash dividend for the 38 day period following the completion of our initial public offering and related formation transactions and ended on December 31, 2014. |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (Parentheticals) | 1 Months Ended |
Dec. 31, 2014$ / shares | |
Income Statement [Abstract] | |
Cash dividend | $ 0.039 |
COMBINED CONSOLIDATED STATEMENT
COMBINED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Nov. 23, 2014 | Dec. 31, 2013 | |
Predecessor [Member] | ||
REVENUES: | ||
Rental income | $ 30,208 | $ 30,406 |
Tenant reimbursement income | 1,646 | 1,821 |
Distributions from real estate fund investments | 17,083 | 29,184 |
Realized and unrealized gains, net | 129,354 | 332,053 |
Fee and other income | 49,098 | 26,426 |
Total revenues | 227,389 | 419,890 |
EXPENSES: | ||
Operating | 15,862 | 16,195 |
Depreciation and amortization | 10,203 | 10,582 |
General and administrative | 30,912 | 33,504 |
Profit sharing compensation | 12,041 | 23,385 |
Other | 7,974 | 4,633 |
Total expenses | 76,992 | 88,299 |
Operating income (loss) | 150,397 | 331,591 |
Income from unconsolidated joint ventures | 4,241 | 1,062 |
Unrealized gain (loss) on interest rate swaps | (673) | 1,615 |
Interest and other income (loss), net | 2,479 | 9,407 |
Interest and debt expense | (28,585) | (29,807) |
Net income before income taxes | 127,859 | 313,868 |
Income tax expense | (18,461) | (11,029) |
Net income | 109,398 | 302,839 |
Net income attributable to noncontrolling interests | (87,888) | (286,325) |
Net (loss) income attributable to common stockholders | $ 21,510 | $ 16,514 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 72,722 | $ 21,143 |
Other comprehensive loss: | ||
Change in value of interest rate swaps | (9,241) | |
Pro rata share of other comprehensive loss of unconsolidated joint ventures | (512) | |
Comprehensive income | 72,722 | 11,390 |
Less comprehensive (income) loss attributable to noncontrolling interests in: | ||
Consolidated joint ventures and funds | (1,488) | (26,632) |
Operating Partnership | (13,926) | 2,980 |
Comprehensive (loss) income attributable to common stockholders | $ 57,308 | $ (12,262) |
COMBINED CONSOLIDATED STATEMEN8
COMBINED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Earnings (Less than) In Excess of Distributions [Member] | Accumulated Other Comprehensive Loss [Member] | Predecessor Shareholders' Equity [Member] | Noncontrolling Interest [Member]Consolidated Joint Ventures and Funds [Member] | Noncontrolling Interest [Member]Operating Partnership [Member] |
Beginning balance (Predecessor [Member]) at Dec. 31, 2012 | $ 1,738,226 | $ 420,495 | $ 1,317,731 | |||||
Net income | Predecessor [Member] | 302,839 | 16,514 | 286,325 | |||||
Contributions | Predecessor [Member] | 111,621 | 5,359 | 106,262 | |||||
Distributions | Predecessor [Member] | (127,242) | (120,599) | (6,643) | |||||
Ending balance (Predecessor [Member]) at Dec. 31, 2013 | 2,025,444 | 321,769 | 1,703,675 | |||||
Ending balance (Predecessor [Member]) at Dec. 31, 2013 | 2,025,444 | |||||||
Net income | Predecessor [Member] | 109,398 | 21,510 | 87,888 | |||||
Contributions | Predecessor [Member] | 296,409 | 23,688 | 272,721 | |||||
Distributions | Predecessor [Member] | (442,462) | (176,434) | (266,028) | |||||
Ending balance (Predecessor [Member]) at Nov. 23, 2014 | 2,176,178 | 377,922 | 1,798,256 | |||||
Deemed contributions | Predecessor [Member] | 187,389 | 187,389 | ||||||
Net income | $ 72,722 | $ 57,308 | 1,488 | $ 13,926 | ||||
Common stock, shares outstanding at Dec. 31, 2014 | 212,106,718 | 212,107,000 | ||||||
Common shares issued initial public offering | 150,650,000 | |||||||
Common shares issued initial public offering, value | $ 2,498,200 | $ 1,507 | $ 2,496,693 | |||||
Common shares issued private placement | 3,914,000 | |||||||
Common shares issued private placement value | 68,500 | $ 39 | 68,461 | |||||
Common shares issued acquire property interest | 11,279,000 | |||||||
Common shares issued acquire property interest, value | 209,316 | $ 113 | 209,203 | |||||
Common shares upon redemption of common units | 210,000 | |||||||
Common shares upon redemption of common units, value | $ 2 | 3,890 | (3,892) | |||||
Common shares issued under Omnibus share plan | 6,000 | |||||||
Common shares issued under Omnibus share plan, value | 1 | $ 1 | ||||||
Common units issued Founders Grant | 71,000 | 71,000 | ||||||
Common units issued under Omnibus share plan | (13,702) | 13,702 | ||||||
Allocation of equity resulting from shares issued in connection with the Formation Transactions | 46,048,000 | |||||||
Allocation of equity resulting from units issued in connection with the Formation Transactions, Value | 410,385 | $ 460 | 1,130,868 | $ (377,922) | (1,162,198) | 819,177 | ||
Contributions by noncontrolling interest in joint ventures and funds | 57,843 | 57,843 | ||||||
Distributions to noncontrolling interest in joint ventures and funds | (8,488) | (8,488) | ||||||
Adjustments to noncontrolling interests | (43,981) | 43,981 | ||||||
Other | (704) | (1,013) | 309 | |||||
Ending balance at Dec. 31, 2014 | 5,554,953 | $ 2,122 | 3,851,432 | 57,308 | 685,888 | 958,203 | ||
Net income | $ 21,143 | (4,419) | 26,632 | (1,070) | ||||
Common stock, shares outstanding at Dec. 31, 2015 | 212,112,137 | 212,112,000 | ||||||
Common shares issued under Omnibus share plan | 5,000 | |||||||
Common units issued under Omnibus share plan | $ 4 | (2,127) | 2,131 | |||||
Dividends and distributions | (110,525) | (88,874) | (21,651) | |||||
Contributions by noncontrolling interest in joint ventures and funds | 167,929 | 167,929 | ||||||
Distributions to noncontrolling interest in joint ventures and funds | (56,636) | (56,636) | ||||||
Change in value of interest rate swaps | (9,241) | $ (7,431) | (1,810) | |||||
Pro rata share of other comprehensive loss of unconsolidated joint ventures | (512) | (412) | (100) | |||||
Acquisition of noncontrolling interests' in unconsolidated joint ventures and funds | (263,416) | (91,417) | (171,999) | |||||
Adjustments to noncontrolling interests | 43,981 | (43,981) | ||||||
Amortization of equity awards | 7,784 | 1,459 | 6,325 | |||||
Other | (933) | (470) | (135) | (328) | ||||
Ending balance at Dec. 31, 2015 | $ 5,310,550 | $ 2,122 | $ 3,802,858 | $ (36,120) | $ (7,843) | $ 651,486 | $ 898,047 |
COMBINED CONSOLIDATED STATEMEN9
COMBINED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parentheticals) | 12 Months Ended | |
Dec. 31, 2015$ / shares | ||
Statement Of Stockholders Equity [Abstract] | ||
Dividends and distributions, Per share and unit | $ 0.419 | [1] |
[1] | Includes the $0.039 cash dividend for the 38 day period following the completion of our initial public offering and related formation transactions and ended on December 31, 2014. |
COMBINED CONSOLIDATED STATEME10
COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ 72,722 | $ 21,143 | ||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||
Depreciation and amortization | 34,481 | 294,624 | ||
Unrealized (gain) loss on interest rate swaps | (15,084) | (75,760) | ||
Straight-lining of rental income | (5,653) | (69,522) | ||
Realized and unrealized (gains) losses on real estate fund investments | 1,357 | (21,201) | ||
Amortization of below-market leases, net | (467) | (9,917) | ||
Amortization of stock based compensation expense | 7,309 | |||
Income from unconsolidated joint ventures | (938) | (6,850) | ||
Other non-cash adjustments | 1,368 | 5,824 | ||
Distributions of income from unconsolidated joint ventures | 532 | 4,966 | ||
Amortization of deferred financing costs | 240 | 2,565 | ||
Realized and unrealized losses (gains) on marketable securities | 356 | 119 | ||
Defeasance cost in connection with the refinancing of notes and mortgages payable | 14,990 | |||
Gain on consolidation of an unconsolidated joint venture | (239,716) | |||
Stock-based compensation expense in connection with Founders Grants | 71,000 | |||
Changes in operating assets and liabilities: | ||||
Restricted cash | 6,502 | |||
Real estate fund investments | (51,362) | (127,743) | ||
Accounts and other receivables | (150) | (3,152) | ||
Deferred charges | (13,181) | (40,510) | ||
Other assets | 13,722 | 6,465 | ||
Accounts payable and accrued expenses | 14,162 | (6,152) | ||
Deferred income taxes | (328) | |||
Other liabilities | 14,547 | 1,151 | ||
Net cash (used in) provided by operating activities | (80,572) | (16,969) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Acquisitions of, and additions to, rental properties | (6,143) | (107,859) | ||
Change in restricted cash | 18,556 | 12,424 | ||
Distributions of capital from unconsolidated joint ventures | 19 | |||
Cash received from properties in connection with the formation transactions | 192,500 | |||
Net cash (used in) provided by investing activities | 204,913 | (95,416) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from notes and mortgages payable | 1,013,544 | |||
Repayment of notes and mortgages payable | (1,704,330) | (927,633) | ||
Acquisition of noncontrolling interest in consolidated joint ventures | (261,464) | |||
Contributions from noncontrolling interests | 57,843 | 167,929 | ||
Dividends paid to common stockholders and unitholders | (85,458) | |||
Distributions to noncontrolling interests | (8,488) | (56,636) | ||
Settlement of swap liabilities | (14,130) | (33,741) | ||
Proceeds from revolving credit facility | 20,000 | |||
Debt issuance costs | (8,599) | (18,871) | ||
Cash paid for equity interests in the formation transactions | (214,949) | |||
Proceeds from the issuance of common stock | 2,590,599 | |||
Purchase of marketable securities in connection with the defeasance of notes and mortgages payable | (435,774) | |||
Net cash (used in) provided by financing activities | 262,172 | (182,330) | ||
Net (decrease) increase in cash and cash equivalents | 386,513 | (294,715) | ||
Cash and cash equivalents at beginning of period | 52,086 | 438,599 | ||
Cash and cash equivalents at end of period | 438,599 | $ 52,086 | 143,884 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
Cash payments for interest | 23,728 | 159,186 | ||
Cash payments for income taxes, net of refunds | 2,798 | |||
NON-CASH TRANSACTIONS: | ||||
Dividends and distributions declared but not yet paid | 25,067 | |||
Additions to real estate included in accounts payable and accrued expenses | 16,598 | 32,009 | ||
Change in value of interest rate swaps | 9,241 | |||
(Purchases) sale of marketable securities | 146 | (1,481) | ||
Write-off of fully amortized and/or depreciated assets | $ 1,399 | |||
Increase (decrease) in assets, liabilities and noncontrolling interests from the formation transactions: | ||||
Real estate, net | 7,043,651 | |||
Real estate funds | (2,045,922) | |||
Investment in unconsolidated joint ventures | (18,264) | |||
Working capital, net of cash | 26,784 | |||
Intangible assets | 689,894 | |||
Notes and mortgages payable | 4,261,903 | |||
Intangible liabilities | 222,985 | |||
Preferred equity obligation | 114,147 | |||
Profit sharing compensation payable | (57,296) | |||
Interest rate swap liabilities | 223,411 | |||
Marketable securities transferred in connection with the defeasance of notes and mortgages payable | 435,774 | |||
Defeasance of notes and mortgages payable | (420,784) | |||
Reduction of equity for deferred offering costs | 31,284 | |||
Predecessor [Member] | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | 109,398 | $ 302,839 | ||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||
Depreciation and amortization | 10,203 | 10,582 | ||
Unrealized (gain) loss on interest rate swaps | 673 | (1,615) | ||
Straight-lining of rental income | 161 | 158 | ||
Realized and unrealized (gains) losses on real estate fund investments | (129,354) | (332,053) | ||
Income from unconsolidated joint ventures | (4,241) | (1,062) | ||
Other non-cash adjustments | 7,303 | 4,221 | ||
Distributions of income from unconsolidated joint ventures | 2,874 | 2,612 | ||
Amortization of deferred financing costs | 389 | 434 | ||
Realized and unrealized losses (gains) on marketable securities | (1,706) | (5,532) | ||
Changes in operating assets and liabilities: | ||||
Restricted cash | (8,271) | 4,115 | ||
Real estate fund investments | (31,061) | 13,436 | ||
Accounts and other receivables | (35,989) | (4,724) | ||
Deferred charges | 600 | (600) | ||
Other assets | 311 | 3,510 | ||
Accounts payable and accrued expenses | (4,605) | 7,712 | ||
Profit sharing payables | 156 | 19,972 | ||
Deferred income taxes | (2,205) | 2,701 | ||
Other liabilities | 869 | 6,779 | ||
Net cash (used in) provided by operating activities | (84,495) | 33,485 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Acquisitions of, and additions to, rental properties | (65,916) | (147) | ||
Change in restricted cash | 584 | 648 | ||
Distributions of capital from unconsolidated joint ventures | 2,079 | 2,272 | ||
Purchase of marketable securities | (2,731) | |||
Proceeds from repayment of loan to management | 3,000 | 1,000 | ||
Investment in unconsolidated joint ventures | (4,077) | |||
Net cash (used in) provided by investing activities | (64,330) | 1,042 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayment of notes and mortgages payable | (2,827) | (17,635) | ||
Contributions from noncontrolling interests | 272,721 | 106,262 | ||
Distributions to noncontrolling interests | (266,028) | (6,643) | ||
Contribution from Predecessor shareholders | 23,688 | 5,359 | ||
Distributions to Predecessor shareholders | (149,135) | (120,599) | ||
Proceeds from loans payable to noncontrolling interests | 39,075 | |||
Offering costs | (23,744) | 912 | ||
Net cash (used in) provided by financing activities | (106,250) | (32,344) | ||
Net (decrease) increase in cash and cash equivalents | (255,075) | 2,183 | ||
Cash and cash equivalents at beginning of period | $ 52,086 | 307,161 | 304,978 | |
Cash and cash equivalents at end of period | 52,086 | 307,161 | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
Cash payments for interest | 19,829 | 24,003 | ||
Cash payments for income taxes, net of refunds | 18,998 | $ 2,599 | ||
NON-CASH TRANSACTIONS: | ||||
(Purchases) sale of marketable securities | 7,110 | |||
Write-off of fully amortized and/or depreciated assets | 2,735 | |||
Increase (decrease) in assets, liabilities and noncontrolling interests from the formation transactions: | ||||
Debt assumed from affiliate | $ 27,299 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization And Business | PARAMOUNT GROUP, INC. AND PARAMOUNT PREDECESSOR NOTES TO COMBINED CONSOLIDATED FINANCIAL STATEMENTS 1. Organization and Business As used in these consolidated and combined financial statements, unless indicated otherwise, all references to “we,” “us,” “our,” the “Company,” and “Paramount” refer to Paramount Group, Inc. and its consolidated subsidiaries, including Paramount Group Operating Partnership LP, upon completion of the Formation Transactions (as more fully described below) and the initial public offering of common stock. We are a fully-integrated real estate investment trust (“REIT”) focused on owning, operating, managing, acquiring and redeveloping high-quality, Class A office properties in select central business district submarkets of New York City, Washington, D.C. and San Francisco. As of December 31, 2015, our portfolio consisted of 12 Class A office properties aggregating approximately 10.4 million square feet. We were incorporated in Maryland as a corporation on April 14, 2014 to continue the business of our Predecessor, as defined, and did not have any meaningful operations until the acquisition of substantially all of the assets of our Predecessor and the assets of the Property Funds, as defined, that it controlled, as well as the interests of unaffiliated third parties in certain properties. Our properties were acquired through a series of Formation Transactions (the “Formation Transactions”) concurrently with our initial public offering of 150,650,000 common shares at a public offering price of $17.50 per share on November 24, 2014 (the “Offering”). We conduct our business through, and substantially all of our interests are held by, Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). We are the sole general partner of, and owned approximately 80.4% of, the Operating Partnership as of December 31, 2015. Our Predecessor Our Predecessor is not a legal entity but a combination of entities under common control as they were entities controlled by members of the Otto Family that held various assets, including interests in (i) 15 private equity real estate funds controlled by our Predecessor (which included nine primary funds and six parallel funds) (collectively, the “Funds”) that owned interests in 12 properties, (ii) a wholly-owned property, Waterview, in Rosslyn, Virginia and (iii) three partially owned properties in New York, NY (See Note 6, Investments in Unconsolidated Joint Ventures Below is a summary of the 15 private equity real estate funds that were controlled by our Predecessor prior to the completion of the Formation Transactions. The following funds are collectively referred to herein as the “Property Funds”: • Paramount Group Real Estate Fund I, L.P. (“Fund I”) • Paramount Group Real Estate Fund II, L.P. (“Fund II”) • Paramount Group Real Estate Fund III, L.P. (“Fund III”) • Paramount Group Real Estate Fund IV, L.P. (“Fund IV”) • PGREF IV Parallel Fund (Cayman), L.P. (“Fund IV Cayman”) • Paramount Group Real Estate Fund V (CIP), L.P. (“Fund V CIP”) • Paramount Group Real Estate Fund V (Core), L.P. (“Fund V Core”) • PGREF V (Core) Parallel Fund (Cayman), L.P. (“Fund V Cayman”) • Paramount Group Real Estate Fund VII, LP (“Fund VII”) • Paramount Group Real Estate Fund VII-H, LP (“Fund VII-H”) The following fund was formed to acquire, develop and manage the residential development project at 75 Howard Street: • Paramount Group Residential Development Fund, LP (“Residential Fund”) The following funds are collectively referred to herein as the “Alternative Investment Funds”: • Paramount Group Real Estate Special Situations Fund, L.P. (“PGRESS”) • Paramount Group Real Estate Special Situations Fund–H, L.P. (“PGRESS–H”) • Paramount Group Real Estate Special Situations Fund–A, L.P. (“PGRESS–A”) • Paramount Group Real Estate Fund VIII, L.P. (“Fund VIII”) The Property Funds and Residential Fund owned interests in the following properties: • 1633 Broadway, New York, NY • 60 Wall Street, New York, NY • 900 Third Avenue, New York, NY • 31 West 52nd Street, New York, NY • 1301 Avenue of the Americas, New York, NY • One Market Plaza, San Francisco, CA • 50 Beale Street, San Francisco, CA • 75 Howard Street, San Francisco, CA • Liberty Place, Washington, D.C. • 1899 Pennsylvania Avenue, Washington, D.C. • 2099 Pennsylvania Avenue, Washington, D.C. • 425 Eye Street, Washington, D.C. 1 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Basis Of Presentation And Significant Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying consolidated and combined financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. These consolidated and combined financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. All significant inter-company amounts have been eliminated. Our Predecessor’s combined financial statements included all the accounts of our Predecessor, including its interests in (i) the Funds, (ii) Waterview and (iii) the three partially-owned properties. Our Predecessor evaluated each of the Funds pursuant to the control model of Accounting Standards Codification (“ASC”) 810-20, Consolidation—Control of Partnerships and Similar Entities Financial Services—Investment Companies Upon completion of the Offering and the Formation Transactions, we acquired substantially all of the assets of our Predecessor and all of the assets of the Property Funds that it controlled, other than their interests in 60 Wall Street, 50 Beale Street, and a residual 2.0% interest in One Market Plaza. In addition, as part of the Formation Transactions, we also acquired the interests of certain unaffiliated third parties in 1633 Broadway, 31 West 52nd Street and 1301 Avenue of the Americas. These transactions were accounted for as transactions among entities under common control. However, since the assets that we acquired from our Predecessor are no longer held by funds which qualify for investment company accounting, we account for these assets following the Formation Transactions using historical cost accounting. As a result, our consolidated financial statements following the Formation Transactions differ significantly from, and are not comparable with, the historical financial position and results of operations of our Predecessor. Significant Accounting Policies Rental Property Rental property is carried at cost less accumulated depreciation and amortization. Betterments, major renovations and certain costs directly related to the improvement of rental properties are capitalized. Maintenance and repair expenses are charged to expense as incurred. Depreciation is recognized on a straight-line basis over estimated useful lives of the assets, which range from 5 to 40 years. Tenant improvements are amortized on a straight-line basis over the lives of the related leases, which approximate the useful lives of the assets. Upon the acquisition of real estate, we assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above-market leases and acquired in-place leases) and acquired liabilities (such as acquired below-market leases) and allocate the purchase price based on these assessments. We assess fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known trends, and market/economic conditions. We record acquired intangible assets (including acquired above-market leases and acquired in-place leases) and acquired intangible liabilities (including below-market leases) at their estimated fair value. We amortize acquired above-and below-market leases as a decrease or increase to rental income, respectively, over the lives of the respective leases. Amortization of acquired in-place leases is included as a component of depreciation and amortization. Our properties, including any related intangible assets, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows, anticipated holding periods, or market conditions change, our evaluation of impairment losses may be different and such differences could be material to our consolidated financial statements. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Plans to hold properties over longer periods decrease the likelihood of recording impairment losses. Variable Interest Entities and Investments in Unconsolidated Joint Ventures We consolidate variable interest entities (“VIEs”) in which we are considered to be the primary beneficiary. VIEs are entities in which the equity investors do not have sufficient equity at risk to finance their endeavors without additional financial support or that the holders of the equity investment at risk do not have a controlling financial interest. The primary beneficiary is defined by the entity having both of the following characteristics: (i) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance, and (ii) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. For joint ventures that are not VIEs, we consolidate entities for which we have significant decision making control over the joint ventures’ operations. Our judgment with respect to our level of influence or control of an entity involves the consideration of various factors including the form of our ownership interest, our representation in the entity’s governance, the size of our investment, estimates of future cash flows, our ability to participate in policy making decisions and the rights of the other investors to participate in the decision making process and to replace us as manager and/or liquidate the joint venture, if applicable. We account for investments under the equity method when the requirements for consolidation are not met, and we have significant influence over the operations of the investee. Equity method investments are initially recorded at cost and subsequently adjusted for our share of net income or loss and cash contributions and distributions each period. Investments accounted for under the equity method are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. An impairment loss is measured based on the excess of the carrying amount of an investment over its estimated fair value. Impairment analyses are based on current plans, intended holding periods and available information at the time the analyses are prepared. Investments that do not qualify for consolidation or equity method accounting are accounted for on the cost method. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and short-term highly liquid investments with original maturities of three months or less. The majority of our cash and cash equivalents are held at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation limit. To date, we have not experienced any losses on our invested cash. Restricted Cash Restricted cash consists of security deposits held on behalf of our tenants and cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements and cash restricted in connection with our deferred compensation plan. Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of tenants to make required payments under the lease agreements. We also maintain an allowance for deferred rent receivable. This receivable arises from earnings recognized in excess of amounts currently due under the lease agreements. Management exercises judgment in establishing these allowances and considers payment history and current credit status in developing these estimates. Deferred Charges Deferred charges include deferred lease costs and deferred financing costs. Deferred lease costs consist of fees and direct costs related to successful leasing activities. Such costs are amortized on a straight-line basis over the lives of the related leases as a component of depreciation and amortization. Deferred financing costs consist of fees and direct costs incurred in obtaining financing. Such costs are amortized over the terms of the related agreements as a component of interest expense. Income Taxes We operate and have been organized in conformity with the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes. So long as we qualify as a REIT, we generally will not be subject to U.S. federal income tax on our net income that we distribute currently to our stockholders. In order to maintain our qualification as a REIT, we are required under the Internal Revenue Code of 1986, as amended, to distribute at least 90% of our taxable income (without regard to the deduction for dividends paid and excluding net capital gains) to our stockholders and meet certain other requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate income tax rates. Even if we qualify as a REIT, we may also be subject to certain state, local and franchise taxes. Under certain circumstances, U.S. federal income and excise taxes may be due on our undistributed taxable income. Derivative Instruments and Hedging Activities We manage our market risk on variable rate debt by entering into interest rate swaps to fix the rate on all or a portion of the debt for varying periods through maturity. These interest rate swaps are accounted for as derivative instruments and, pursuant to ASC 815, are recorded on our balance sheet at fair value. Changes in the fair value of interest rate swaps are accounted for based on the hedging relationship and their designation and qualification as either fair value hedges or cash flow hedges. Changes in the fair value of interest rate swaps that are not designated as hedges are recognized in earnings. Changes in the fair value of interest rate swaps that are designated as cash flow hedges are recognized in accumulated other comprehensive income (outside of earnings). Revenue Recognition Rental Income Rental income includes base rents that each tenant pays in accordance with the terms of its respective lease and is reported on a straight-line basis over the non-cancellable term of the lease, which includes the effects of rent steps and rent abatements under the leases. We commence rental revenue recognition when the tenant takes possession of the leased space or controls the physical use of the leased space and the leased space is substantially ready for its intended use. Differences between rental income recognized and amounts due under the respective lease agreements are recorded as an increase or decrease to “deferred rent receivable.” Rental income also includes the amortization of acquired above-and below-market leases, net. Tenant Reimbursement Income Tenant reimbursement income includes revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the property. This revenue is accrued in the same period as the expenses are incurred. Fee and Other Income Fee and other income includes management fees earned pursuant to contractual agreements. This revenue is recognized as the related services are performed. Fee and other income also includes lease termination. Segment Reporting Upon completion of the Offering and Formation Transactions, we acquired substantially all of the assets of our Predecessor and substantially all of the assets of the Property Funds that it controlled. Our business, following the Formation Transactions, is comprised of one reportable segment. We have determined that our properties have similar economic characteristics to be aggregated into one reportable segment (operating, leasing and managing office properties). Our determination was based primarily on our method of internal reporting. Our Predecessor historically operated an integrated business that consisted of three reportable segments, (i) Owned Properties, (ii) Managed Funds and (iii) a Management Company. The Owned Properties segment consisted of properties in which our Predecessor had a direct or indirect ownership interest, other than properties that it owned through its private equity real estate funds. The Managed Funds segment consisted of the private equity real estate funds. In addition, our Predecessor included a Management Company that performed property management and asset management services and certain general and administrative level functions, including legal and accounting, as a separate reportable segment. Recently Issued Accounting Literature In May 2014, the FASB issued an update ("ASU 2014-09") Revenue from Contracts with Customers. In June 2014, the FASB issued an update (“ASU 2014-12”) to ASC Topic 718, Compensation – Stock Compensation In February 2015, the FASB issued an update (“ASU 2015-02”) Amendments to the Consolidation Analysis Consolidation. Financial Services-Investment Companies In April 2015, the FASB issued an update (“ASU 2015-03”) Simplifying the Presentation of Debt Issuance Costs Interest – Imputation of Interest. ”) Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at 18 June 2015 EITF Meetin g . ASU 2015-15 clarifies the exclusion of line-of-credit arrangements from the scope of ASU 2015-03. Therefore, debt issuance costs related to line-of-credit arrangements can be deferred and presented as an asset that is subsequently amortized over the time of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. In September 2015, the FASB issued an update (“ASU 2015-16”) Simplifying the Accounting for Measurement-Period Adjustments Business Combinations. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions 31 West 52nd Street On October 1, 2015, we acquired the remaining 35.8% equity interest that we did not previously own in 31 West 52nd Street from our joint venture partner for approximately $230,000,000 in cash and the assumption of $148,000,000 of existing debt. Since we previously consolidated the results of operations of 31 West 52nd Street into our consolidated financial statements, the acquisition of the remaining 35.8% was accounted for as an equity transaction in accordance with ASC Topic 810, Consolidations |
Real Estate Fund Investments
Real Estate Fund Investments | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate Fund [Abstract] | |
Real Estate Fund Investments | 4. Real Estate Fund Investments Real estate fund investments are presented at fair value on our consolidated balance sheets and are comprised of (i) Property Funds and (ii) Alternative Investment Funds. The Company Below is a summary of the fair value of the fund investments on our consolidated balance sheets. (Amounts in thousands) As of Balance Sheets December 31, 2015 December 31, 2014 Real Estate Fund Investments: Property Funds $ 248,824 $ 183,216 Alternative Investment Funds 167,614 140,171 Total $ 416,438 $ 323,387 Below is a summary of income from the fund investments on our consolidated statements of income. Period from (Amounts in thousands) Year Ended November 24, Income Statements December 31, 2015 to December 31, 2014 Investment income $ 13,406 $ 3,334 Investment expenses 1,132 565 Net investment income 12,274 2,769 Net realized gains 11,955 50 Previously recorded unrealized gains on exited investments (6,584 ) - Net unrealized gains (losses) 20,330 (1,407 ) Income from real estate fund investments $ 37,975 $ 1,412 Property Funds The purpose of the Property Funds is to invest in office buildings and related facilities primarily in New York City and San Francisco. On October 29, 2015, Fund VII and Fund VII-H completed the acquisition of 670 Broadway, a 75,945 square foot creative office building located in Manhattan, for $112,000,000, comprised of $42,000,000 in cash and $70,000,000 of initial mortgage debt. The following is a summary of the Property Funds, our ownership interests in these Funds and Funds’ ownership interest in the underlying properties. As of December 31, 2015 % Ownership 60 Wall Street One Market Plaza 50 Beale Street 670 Broadway Fund II 10.0 % 46.3 % - - - Fund III 3.1 % 16.0 % 2.0 % - - Fund VII/VII-H 7.2 % - - 42.8 % 100.0 % Total Property Funds 62.3 % 2.0 % 42.8 % 100.0 % Other Investors 37.7 % 98.0 % (1) 57.2 % - Total 100.0 % 100.0 % 100.0 % 100.0 % (1) Includes a 49.0% ownership interest held by us. Alternative Investment Funds The purpose of the Alternative Investment Funds is to invest primarily in real estate related debt and preferred equity investments. As of December 31, 2015, the Alternate Investment Funds had an aggregate of $580,200,000 of committed capital, of which we have invested $166,560,000. The following is a summary of our ownership interests in the Alternative Investment Funds and the Funds’ underlying investments, as of December 31, 2015. (Amounts in thousands) % As of Fund/Investment Investment Type Ownership Interest Rate Initial Maturity December 31, 2015 December 31, 2014 Fund VIII 26 Broadway (1) Mezzanine Loan 1.7% 8.3% Jan-2022 $ 46,678 $ 45,947 1440 Broadway (2) Mezzanine Loan 1.7% 6.4% Oct-2019 40,619 - 700 Eighth Avenue (3) Mortgage/Mezzanine Loans 1.7% 6.4% Dec-2016 80,317 - Total Mortgage and Mezzanine Loans $ 167,614 $ 45,947 PGRESS Funds 470 Vanderbilt Avenue (4) Preferred Equity Investment $ - $ 35,039 2 Herald Square (5) Preferred Equity Investment - 18,107 One Court Square (6) Preferred Equity Investment - 41,078 Total Preferred Equity Investments $ - $ 94,224 Total Alternative Investment Funds $ 167,614 $ 140,171 (1) The loan is secured by the equity interests in the owner of 26 Broadway, an 836,000 square foot office building, located in the financial district of Manhattan. The loan has a fixed interest rate and is subordinate to $220,000 of other debt. (2) On September 30, 2015, Fund VIII closed on a $40,000 mezzanine loan secured by the equity interests in the owner of 1440 Broadway, a 751,546 square foot office and retail property located in Manhattan. The loan bears interest at LIBOR plus 600 bps, and has a one-year extension option and is subordinate to $265,000 of other debt. (3) On November 24, 2015, Fund VIII closed on a senior mortgage and mezzanine loan aggregating $80,000 secured by 700 Eighth Avenue, a 26,126 square foot retail property located in Manhattan. The loans bear interest at LIBOR plus 600 bps and have one-year extension options. (4) Represents a preferred equity investment in a partnership that owns 470 Vanderbilt Avenue, a 650,000 square foot office building located in Brooklyn, New York. (See Note 5, Preferred Equity Investments (5) Represents a preferred equity investment in a partnership that owns 2 Herald Square, a 369,000 square foot office and retail property in Manhattan. (See Note 5, Preferred Equity Investments (6) On September 1, 2015, PGRESS and PGRESS-H redeemed their preferred equity investment in One Court Square for $42,475, resulting in a realized gain on the investment of $7,455. The Predecessor Below is a summary of realized and unrealized gains from real estate fund investments on our consolidated statements of income. The Predecessor Period from (Amounts in thousands) January 1, 2014 Year Ended Income Statements to November 23, 2014 December 31, 2013 Net realized gains (losses) on real estate fund investments 43,309 (694 ) Previously recorded unrealized (gains) losses on exited investments (10,405 ) 10,571 Net unrealized gains on real estate fund investments 96,450 322,176 Realized and unrealized gains, net $ 129,354 $ 332,053 Asset Management Fees Our predecessor earned asset management fees from the Funds it managed. Asset management fees and expenses related to Funds included in the combined consolidated statements of income are eliminated in combination and consolidation. The limited partners’ share of such fees are reflected as a reduction of net income attributable to noncontrolling interests, which results in a corresponding increase in net income attributable to our Predecessor. Below is a summary of the asset management fees earned by our Predecessor. The Predecessor Period from (Amounts in thousands) January 1, 2014 Year Ended Income Statements to November 23, 2014 December 31, 2013 Gross asset management fees $ 23,701 $ 26,180 Eliminated fees (1) (1,078 ) (1,118 ) Net asset management fees $ 22,623 $ 25,062 (1) Eliminated fees reflect a reduction in asset management fees from the general partner interest in each of the Funds. The following tables summarizes the income statements for the period January 1, 2014 to November 23, 2014 and for the year ended December 31, 2013 for each of the Property Funds’ underlying investments. (Amounts in thousands) Property Funds' Underlying Investments for the Period from January 1, 2014 to November 23, 2014 Statements of Income 1633 Broadway 900 Third Ave 31 West 52nd St 1301 Ave of the Americas One Market Plaza Liberty Place 1899 Penn. Ave 2099 Penn. Ave 425 Eye St Revenues: Rental income $ 136,422 $ 31,219 $ 67,453 $ 104,220 $ 65,314 $ 5,823 $ 7,249 $ 165 $ 9,501 Tenant reimbursement income 12,742 3,001 5,126 8,252 1,191 1,884 3,648 6 879 Fee and other income 2,951 1,680 3,360 9,667 3,242 50 115 280 319 Total revenue 152,115 35,900 75,939 122,139 69,747 7,757 11,012 451 10,699 Expenses: Building operating 50,830 14,904 21,516 46,679 25,119 3,911 4,674 4,147 5,148 Related party management fees 2,864 914 1,244 1,580 701 214 254 38 339 Operating 53,694 15,818 22,760 48,259 25,820 4,125 4,928 4,185 5,487 Depreciation and amortization 10,990 6,085 23,438 37,212 31,422 - 3,484 - 5,022 General and administrative 118 113 119 167 4,545 66 58 798 71 Total expenses 64,802 22,016 46,317 85,638 61,787 4,191 8,470 4,983 10,580 Operating income (loss) 87,313 13,884 29,622 36,501 7,960 3,566 2,542 (4,532 ) 119 Unrealized gain on interest rate swaps 25,226 5,759 8,466 12,042 20,848 - - - - Interest and debt expense (46,315 ) (13,269 ) (20,092 ) (54,436 ) (48,486 ) (3,488 ) (4,051 ) (4,578 ) (4,548 ) Unrealized depreciation on investment in real estate - - - - - (2,772 ) - (749 ) - Net income (loss) before taxes 66,224 6,374 17,996 (5,893 ) (19,678 ) (2,694 ) (1,509 ) (9,859 ) (4,429 ) Income tax (expense) benefit - - - - - (105 ) 53 - (2,430 ) Net income (loss) $ 66,224 $ 6,374 $ 17,996 $ (5,893 ) $ (19,678 ) $ (2,799 ) $ (1,456 ) $ (9,859 ) $ (6,859 ) (Amounts in thousands) Property Funds' Underlying Investments for the Year Ended December 31, 2013 Statements of Income 1633 Broadway 900 Third Ave 31 West 52nd St 1301 Ave of the Americas One Market Plaza Liberty Place 1899 Penn. Ave 2099 Penn. Ave 425 Eye St Revenues: Rental income $ 130,590 $ 33,601 $ 77,257 $ 97,576 $ 77,265 $ 8,421 $ 9,686 $ 432 $ 10,167 Tenant reimbursement income 13,538 3,036 5,100 9,693 1,707 2,528 4,807 74 4 Fee and other income 2,994 732 1,154 2,598 7,778 82 153 58 801 Total revenue 147,122 37,369 83,511 109,867 86,750 11,031 14,646 564 10,972 Expenses: Building operating 54,867 16,150 22,905 51,247 29,985 4,286 5,066 4,531 5,448 Related party management fees 2,870 980 1,295 1,646 832 275 330 13 354 Operating 57,737 17,130 24,200 52,893 30,817 4,561 5,396 4,544 5,802 Depreciation and amortization 11,187 6,349 22,688 37,075 37,847 - 4,139 - 5,502 General and administrative 251 156 130 215 236 63 69 66 75 Total expenses 69,175 23,635 47,018 90,183 68,900 4,624 9,604 4,610 11,379 Operating income (loss) 77,947 13,734 36,493 19,684 17,850 6,407 5,042 (4,046 ) (407 ) Unrealized gain on interest rate swaps 34,711 9,985 15,993 21,275 36,378 - - 1,101 427 Interest and debt expense (52,563 ) (14,872 ) (22,307 ) (68,540 ) (55,170 ) (3,887 ) (4,514 ) (5,285 ) (5,664 ) Unrealized (depreciation) appreciation on investment in real estate - - - - - (2,066 ) - 1,965 - Net income (loss) before taxes 60,095 8,847 30,179 (27,581 ) (942 ) 454 528 (6,265 ) (5,644 ) Income tax (expense) benefit - - - - - (45 ) (54 ) - 2,492 Net income (loss) $ 60,095 $ 8,847 $ 30,179 $ (27,581 ) $ (942 ) $ 409 $ 474 $ (6,265 ) $ (3,152 ) |
Preferred Equity Investments
Preferred Equity Investments | 12 Months Ended |
Dec. 31, 2015 | |
Schedule Of Investments [Abstract] | |
Preferred Equity Investments | 5. Preferred Equity Investments On December 16, 2015, we acquired PGRESS-A, which owned a 20% interest in a PGRESS Equity Holdings L.P., for $12,150,000. PGRESS Equity Holdings L.P. owns certain preferred equity investments that are also owned by PGRESS and PGRESS-H (together with PGRESS-A, the “PGRESS Funds”). Prior to our acquisition of PGRESS-A, we owned a 5.4% interest in the underlying investments held by the PGRESS and PGRESS-H Funds, which were consolidated into our consolidated financial statements. These investments were reflected as a component of “real estate fund investments” on our consolidated balance sheets and the income from these investments was reflected as a component of “income from real estate fund investments” on our consolidated statements of income. Subsequent to our acquisition of PGRESS-A, we are required to consolidate PGRESS Equity Holdings L.P. Accordingly, we reclassified the underlying investments to “preferred equity investments” on our consolidated balance sheets and income from the investments is now reflected as a component of “interest and other income (loss), net” on our consolidated statements of income. The following table is a summary of the preferred equity investments. (Amounts in thousands) As of Preferred Equity Investment % Ownership Dividend Rate Initial Maturity December 31, 2015 December 31, 2014 470 Vanderbilt Avenue (1) 25.4% 10.3% Feb-2019 $ 35,305 $ - 2 Herald Square (2) 25.4% 10.3% Apr-2017 18,636 - Total Preferred Equity Investments $ 53,941 $ - (1) Represents a $33,750 preferred equity investment in a partnership that owns 470 Vanderbilt Avenue, a 650,000 square foot office building located in Brooklyn, New York. The preferred equity has a dividend rate of 10.3%, of which 8.0% is being paid in cash through February 2016 and will increase thereafter to 10.3% through maturity, and the unpaid portion accretes to the balance of the investment. (2) Represents a $17,500 preferred equity investment in a partnership that owns 2 Herald Square, a 369,000 square foot office and retail property in Manhattan. The preferred equity has a dividend rate of 10.3%, of which 7.0% is paid currently and the remainder accretes to the balance of the investment. The preferred equity investment has two one-year extension options. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | 6. Investments in Unconsolidated Joint Ventures The following table summarizes our investments in unconsolidated joint ventures as of December 31, 2015 and December 31, 2014. % Ownership at As of (Amounts in thousands) December December 31, 2015 December 31, 2014 Investments: 712 Fifth Avenue 50.0 % $ 3,577 $ 1,697 Oder-Center, Germany 9.5 % 3,525 4,052 $ 7,102 $ 5,749 The following table summarizes our income from unconsolidated joint ventures for the periods set forth below. The The Predecessor % Period from Period from Ownership Year Ended November January 1, Year Ended (Amounts in thousands) December December 31, 2015 to to December 31, 2013 Our share of Net Income (Loss): 712 Fifth Avenue 50.0 % $ 6,734 $ 938 $ 4,141 $ 2,612 Oder-Center, Germany (1) 9.5 % 116 - - - 1325 Avenue of the Americas n/a - - 100 (1,550 ) 900 Third Avenue (2) n/a - - - - $ 6,850 $ 938 $ 4,241 $ 1,062 (1) We account for our interest in Oder-Center on a one quarter lag basis. (2) As of November 23, 2014, and December 31, 2013, our Predecessor’s investment in 900 Third Avenue had a deficit balance and since our Predecessor had no obligations to fund operating losses, it did not recognize any losses in excess of its investment balance. All unrecognized losses were aggregated to offset future net income until all unrecognized losses were utilized. See page 96 for details. 712 Fifth Avenue As of December 31, 2015, we own a 50.0% interest in a joint venture that owns 712 Fifth Avenue, which is accounted under the equity method. The following tables summarize 712 Fifth Avenue’s financial information as of the dates of and for the periods set forth below. (Amounts in thousands) As of Balance Sheets December 31, 2015 December 31, 2014 Rental property, net $ 214,139 $ 221,827 Other assets 42,255 46,126 Total assets $ 256,394 $ 267,953 Notes and mortgages payable $ 246,500 $ 246,500 Other liabilities 15,000 30,321 Total liabilities 261,500 276,821 Equity (1) (5,106 ) (8,868 ) Total liabilities and equity $ 256,394 $ 267,953 (1) The carrying amount of our investment in 712 Fifth Avenue is greater than our share of 712 Fifth Avenue’s equity by approximately $6,131. This basis difference resulted from distributions in excess of the equity in net earnings of 712 Fifth Avenue. The Company The Predecessor Period from Period from (Amounts in thousands) Year Ended November 24, January 1, 2014 Year Ended Income Statements December 31, 2015 to December 31, 2014 to November 23, 2014 December 31, 2013 Rental income $ 49,382 $ 5,118 $ 41,710 $ 41,166 Tenant reimbursement income 4,758 607 4,282 4,311 Fee and other income 1,235 232 1,274 1,785 Total revenue 55,375 5,957 47,266 47,262 Operating 22,956 2,586 20,826 22,306 Depreciation and amortization 11,764 1,209 10,127 10,009 General and administrative - 32 182 194 Total expenses 34,720 3,827 31,135 32,509 Operating income 20,655 2,130 16,131 14,753 Unrealized gain on interest rate swaps 4,223 1,285 5,249 10,031 Interest and debt expense (11,410 ) (1,538 ) (13,098 ) (14,517 ) Net income $ 13,468 $ 1,877 $ 8,282 $ 10,267 Oder-Center As of December 31, 2015, we own a 9.5% interest in a joint venture that owns Oder-Center, a shopping center located in Brandenburg, Germany. We account for our interest in Oder-Center on a one quarter lag basis. The following tables summarize Oder-Center’s financial information as of the dates and for the periods set forth below. (Amounts in thousands) As of Balance Sheet September 30, 2015 Rental property, net $ 6,626 Other assets 1,228 Total assets $ 7,854 Notes and mortgages payable $ 24,143 Other liabilities 245 Total liabilities 24,388 Equity (16,534 ) Total liabilities and equity $ 7,854 (Amounts in thousands) Twelve Months Ended Income Statement September 30, 2015 Rental income $ 4,458 Fee and other income 60 Total revenue 4,518 Operating 625 Depreciation and amortization 401 Total expenses 1,026 Operating income 3,492 Interest and debt expense (1,186 ) Income tax expense (21 ) Net income $ 2,285 1325 Avenue of the Americas Prior to the completion of the Offering and the Formation Transactions, our Predecessor owned a 50.0% interest in a joint venture that owned 1325 Avenue of the Americas, which was accounted for under the equity method. The remaining 50.0% interest was held by a third-party joint venture partner. As part of the Formation Transactions, we acquired the 50.0% interest held by our joint venture partner for $130,381,000 payable in shares of our common stock. The purchase price took into account certain tax benefits to our joint venture partner. The transaction was accounted for as a step acquisition in which we were required to re-measure our existing 50.0% ownership interest at fair value. As a result of the acquisition, we own 100.0% of the property and began consolidating the accounts of the property into our consolidated financial statements from the date of acquisition. In connection therewith, we recognized a $239,716,000 gain in the period from November 24, 2014 to December 31, 2014, comprised of (i) $175,917,000 representing the excess of the fair value of the property over the carrying amount of our investment in the property and (ii) $63,799,000 representing a purchase gain. The following tables summarize 1325 Avenue of the Americas’ financial information for as of the dates and for the periods set forth below. (Amounts in thousands) The Balance Sheet As of December 31, 2013 Rental property, net $ 209,455 Other assets 56,479 Total assets $ 265,934 Notes and mortgages payable $ 220,000 Other liabilities 5,450 Total liabilities 225,450 Equity 40,484 Total liabilities and equity $ 265,934 The Predecessor Period from (Amounts in thousands) January 1, 2014 Year Ended Income Statements to November 23, 2014 December 31, 2013 Rental income $ 33,693 $ 33,397 Tenant reimbursement income 4,629 5,186 Fee and other income 1,472 1,203 Total revenue 39,794 39,786 Operating 21,381 23,667 Depreciation and amortization 7,959 7,830 General and administrative 215 238 Total expenses 29,555 31,735 Operating income 10,239 8,051 Interest and debt expense (10,039 ) (11,150 ) Net income (loss) $ 200 $ (3,099 ) 900 Third Avenue Prior to the completion of the Offering and the Formation Transactions, our Predecessor owned a direct 11.8% interest in the property, which was accounted for under the equity method. The remaining 88.2% interest was held by the Property Funds that were controlled by our Predecessor and was consolidated and accounted for at fair value using investment company accounting. As a part of the Formation Transactions, we acquired 100% of the property. Accordingly, we no longer account for the 11.8% interest under the equity method and began consolidating the accounts of the property into our consolidated financial statements from the date of acquisition. The following table summarizes 900 Third Avenue’s financial information for as of the dates and for the periods set forth below. (Amounts in thousands) The Balance Sheet As of December 31, 2013 Rental property, net $ 135,886 Other assets 35,288 Total assets $ 171,174 Notes and mortgages payable $ 274,337 Other liabilities 30,797 Total liabilities 305,134 Equity (133,960 ) Total liabilities and equity $ 171,174 The Predecessor Period from (Amounts in thousands) January 1, 2014 Year Ended Income Statements to November 23, 2014 December 31, 2013 Rental income $ 32,269 $ 33,601 Tenant reimbursement income 3,001 3,036 Fee and other income 630 732 Total revenue 35,900 37,369 Operating 15,818 17,130 Depreciation and amortization 6,085 6,349 General and administrative 113 156 Total expenses 22,016 23,635 Operating income 13,884 13,734 Unrealized gain on interest rate swaps 5,759 9,985 Interest and debt expense (13,269 ) (14,872 ) Net income $ 6,374 $ 8,847 |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Liabilities | 7. Intangible Assets and Liabilities The following summarizes our identified assets (primarily acquired above-market leases and acquired in-place leases) and intangible liabilities (primarily acquired below-market leases) as of December 31, 2015 and December 31, 2014. As of (Amounts in thousands) December 31, 2015 December 31, 2014 Intangible assets: Gross amount $ 655,194 $ 689,894 Accumulated amortization (143,987 ) (20,509 ) $ 511,207 $ 669,385 Intangible liabilities: Gross amount $ 221,672 $ 222,985 Accumulated amortization (41,931 ) (3,757 ) $ 179,741 $ 219,228 Amortization of acquired below-market leases, net of acquired above-market leases resulted in an increase to rental income of $9,917,000 and $467,000 for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014, respectively. Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2016 is as follows: (Amounts in thousands) 2016 $ 20,229 2017 6,738 2018 8,646 2019 7,965 2020 6,590 Amortization of acquired in-place leases (a component of depreciation and amortization expense) was $128,603,000 and $17,260,000 for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014. Estimated annual amortization of acquired in-place leases for each of the five succeeding years commencing January 1, 2016 is as follows: (Amounts in thousands) 2016 $ 87,289 2017 55,417 2018 49,071 2019 44,458 2020 38,944 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt On December 1, 2015, we completed a $1.0 billion refinancing of 1633 Broadway, a 2.6 million square foot, office building located on Broadway between 50th and 51st Streets in Manhattan. The new seven-year loan is interest only at LIBOR plus 175 basis points and can be increased at our option, by $250,000,000 to $1.25 billion, until December 1, 2018, if certain performance hurdles relating to the property are satisfied. The net proceeds from the refinancing were used to repay the existing $926,260,000 loan and fund $42,011,000 of costs, primarily for swap breakage. The existing loan was scheduled to mature in December 2016 and had a weighted average interest rate of 5.35%. The following is a summary of our outstanding debt. Maturity Fixed/Variable Interest Rate at Balance at (Amounts in thousands) Date Rate December 31, 2015 December 31, 2015 December 31, 2014 Notes and mortgages payable 1633 Broadway Dec-2022 Fixed (1) 3.54 % $ 1,000,000 $ 772,100 Dec-2022 Variable 2.15 % 13,544 154,160 3.52 % 1,013,544 926,260 900 Third Avenue Nov-2017 Fixed (1) 5.98 % 162,000 255,000 Nov-2017 Variable 1.69 % 112,337 19,337 4.22 % 274,337 274,337 31 West 52nd Street Dec-2017 Fixed (1) 6.04 % 237,600 337,500 Dec-2017 Variable 1.79 % 175,890 75,990 4.23 % 413,490 413,490 One Market Plaza (49.0% interest) Dec-2019 Fixed (1) 6.14 % 857,037 853,711 Waterview June-2017 Fixed 5.76 % 210,000 210,000 1899 Pennsylvania Avenue Nov-2020 Fixed 4.88 % 89,116 90,489 Liberty Place June-2018 Fixed 4.50 % 84,000 84,000 Total Notes and mortgages payable 4.68 % $ 2,941,524 $ 2,852,287 $1.0 Billion Revolving Credit Facility ($200,000 reserved for outstanding letters of credit) Nov-2018 Variable 1.54 % $ 20,000 $ - (1) Represents loans with variable interest rates that have been fixed by interest rate swaps. (See Note 9, Derivative Instruments and Hedging Activities). As of December 31, 2015, principal repayments required for the next five years and thereafter (Amounts in thousands) 2016 $ 1,441 2017 899,340 2018 105,588 2019 858,705 2020 82,906 Thereafter 1,013,544 |
Derivatives Instruments and Hed
Derivatives Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments and Hedging Activities | 9. Derivative Instruments and Hedging Activities We manage our market risk on variable rate debt by entering into interest rate swaps to fix the rate on all or a portion of the debt for varying periods through maturity. These interest rate swaps are accounted for as derivative instruments and, pursuant to ASC 815, are recorded on our balance sheet at fair value. Changes in the fair value of interest rate swaps are accounted for based on the hedging relationship and their designation and qualification as either fair value hedges or cash flow hedges. Interest Rate Swaps – Non-designated Hedges As of December 31, 2015, we had 14 interest rate swaps with an aggregate notional amount of $1.2 billion that were not designated as hedges. Changes in the fair value of interest rate swaps that are not designated as hedges are recognized in earnings. In the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014, we recognized unrealized gain of $75,760,000 and $15,084,000, respectively, from the changes in the fair value of these interest rate swaps. The table below provides additional details on our interest rate swaps that are not designated as hedges. Notional Strike Fair Value as of Property Amount Effective Date Maturity Date Rate December 31, 2015 December 31, 2014 (Amounts in thousands) One Market Plaza $ 840,000 Aug-2007 to Aug-2012 Aug-2017 5.02 % $ 55,404 $ 86,099 31 W 52nd Street 237,600 Dec-2007 Dec-2017 4.79 % 17,661 28,748 900 Third Avenue 162,000 Nov-2007 Nov-2017 4.78 % 11,630 19,158 1633 Broadway (1) - n/a n/a n/a - 60,191 Total interest rate swap liabilities related to non-designated hedges $ 84,695 $ 194,196 (1) Terminated in connection with the refinancing of 1633 Broadway. Interest Rate Swaps – Designated as Cash Flow Hedges On September 16, 2015, we entered into three interest rate swaps with an aggregate notional amount of $1.0 billion on 1633 Broadway. These interest rate swaps are designated as cash flow hedges. Changes in the fair value of interest rate swaps that are designated as cash flow hedges are recognized in accumulated other comprehensive income (outside of earnings). On November 25, 2015, we entered into a forward starting interest rate swap with an aggregate notional amount of $400,000,000 to extend the maturity of one of the three swaps that were entered on September 16, 2015 for an additional one year period. In the year ended December 31, 2015, we recognized other comprehensive losses of $9,241,000 from the changes in the fair value of these interest rate swaps. The table below provides additional details on our interest rate swaps that are designated as cash flow hedges. Notional Strike Fair Value as of Property Amount Effective Date Maturity Date Rate December 31, 2015 December 31, 2014 (Amounts in thousands) 1633 Broadway $ 1,000,000 Dec 2015 Dec 2020 to Dec-2022 1.79 % $ 9,204 $ - 1633 Broadway $ 400,000 Dec-2020 Dec-2021 2.35 % 37 - Total interest rate swap liabilities related to cash flow hedges $ 9,241 $ - |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income ("AOCI") | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income ("AOCI") | 10. Accumulated Other Comprehensive (Loss) Income (“AOCI”) The following table sets forth the changes in accumulated other comprehensive (loss) income by component. (Amounts in thousands) Total Pro rata share of OCI of unconsolidated joint ventures Change in value of interest rate swaps For the Year Ended December 31, 2015 Balance as of December 31, 2014 $ - $ - $ - OCI before reclassifications (1) (7,843 ) (412 ) (7,431 ) Amounts reclassified from AOCI - - - Net current period OCI (7,843 ) (412 ) (7,431 ) Balance as of December 31, 2015 $ (7,843 ) $ (412 ) $ (7,431 ) (1) |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 11. Noncontrolling Interests Consolidated Joint Ventures and Funds Noncontrolling interests in consolidated joint ventures and funds consists of (i) equity interests held by third parties in properties that are consolidated into our financial results because we exercise control over the entities that own such properties and (ii) equity interests held by third parties in funds that are consolidated into our financial results because we are the sole general partner of such Funds. As of December 31, 2015 and December 31, 2014, noncontrolling interests in consolidated joint ventures and funds on our consolidated balance sheets aggregated $651,486,000 and $685,888,000, respectively. Operating Partnership Noncontrolling interests in the Operating Partnership represents common units of the Operating Partnership that are held by third parties, including management and units issued to management under equity incentive plans. Common units of the Operating Partnership may be tendered for redemption to the Operating Partnership for cash. We, at our option, may assume that obligation and pay the holder either cash or common shares on a one-for-one basis. Since the number of common shares outstanding is equal to the number of common units owned by us, the redemption value of each common unit is equal to the market value of each common share and distributions paid to each common unitholder is equivalent to dividends paid to common stockholders. As of December 31, 2015, noncontrolling interests in the Operating Partnership on our consolidated balance sheets had a carrying amount of $898,047,000 and a redemption value of $935,048,000. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. Fair Value Measurements ASC 820, Fair Value Measurement and Disclosures, Financial Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of (i) real estate fund investments, (ii) marketable securities (which represent the assets in our deferred compensation plan for which there is a corresponding liability on our consolidated balance sheets) and (iii) interest rate swaps. The table below aggregates the fair values of these financial assets and liabilities at December 31, 2015 and December 31, 2014, based on their levels in the fair value hierarchy. As of December 31, 2015 (Amounts in thousands) Total Level 1 Level 2 Level 3 Real estate fund investments: Investments in Property Funds $ 248,824 $ - $ - $ 248,824 Investments in Alternative Investment Funds 167,614 167,614 Total real estate fund investments 416,438 - - 416,438 Marketable securities 21,521 21,521 - - Total assets $ 437,959 $ 21,521 $ - $ 416,438 Interest rate swap liabilities $ 93,936 - 93,936 - Total liabilities $ 93,936 $ - $ 93,936 $ - As of December 31, 2014 (Amounts in thousands) Total Level 1 Level 2 Level 3 Real estate fund investments: Investments in Property Funds $ 183,216 $ - $ - $ 183,216 Investments in Alternative Investment Funds 140,171 140,171 Total real estate fund investments 323,387 - - 323,387 Marketable securities 20,159 20,159 - - Total assets $ 343,546 $ 20,159 $ - $ 323,387 Interest rate swap liabilities $ 194,196 - $ 194,196 - Total liabilities $ 194,196 $ - $ 194,196 $ - Property Funds At December 31, 2015, the Property Funds had four investments. These investments are classified as Level 3. We obtain third party appraisals at least annually. We use a discounted cash flow valuation technique to estimate the fair value of each of these investments, which is updated quarterly by personnel responsible for the management of each investment and reviewed by senior management at each reporting period. The discounted cash flow valuation technique requires us to estimate cash flows for each investment over the anticipated holding period, which currently ranges from 1.0 to 10.0 years. Cash flows are derived from property rental revenue (base rents plus reimbursements) less operating expenses, real estate taxes and capital and other costs, plus projected sales proceeds in the year of exit. Property rental revenue is based on leases currently in place and our estimates for future leasing activity, which are based on current market rents for similar space. Similarly, estimated real estate taxes and operating expenses are based on amounts incurred in the current period plus a projected growth factor for future periods. Anticipated sales proceeds at the end of an investment’s expected holding period are determined based on the net cash flow of the investment in the year of exit, divided by a terminal capitalization rate, less estimated selling costs. The fair value of each property is calculated by discounting future cash flows (including anticipated sales proceeds), using an appropriate discount rate. The fair value of the investment is calculated by subtracting property level debt, if any, from the fair value of the property. Significant unobservable inputs used in determining the fair value of each investment include capitalization rates and discount rates. These rates are based on, among other factors, location and type of property. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of the Property Fund investments at December 31, 2015 and 2014. As of December 31, 2015 As of December 31, 2014 Unobservable Quantitative Input Range Weighted average (based on fair value of investments) Range Weighted average (based on fair value of investments) Discount rates 7.00% - 7.50% 7.18% 6.50%-7.25% 6.83% Terminal capitalization rates 5.00% - 6.00% 5.47% 5.50% - 6.00% 5.72% The above inputs are subject to change based on changes in economic and market conditions and/or changes in use or timing of exit. Changes in discount rates and terminal capitalization rates result in increases, or decreases, in the fair values of these investments. The discount rates encompass, among other things, uncertainties in the valuation models with respect to terminal capitalization rates and the amount and timing of cash flows. Therefore, a change in the fair value of these investments resulting from a change in the terminal capitalization rate may be partially offset by a change in the discount rate. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value, respectively. Alternative Investment Funds At December 31, 2015, the investments in the Alternative Investment Funds were comprised of mezzanine loans and senior mortgage loans. These investments are classified as Level 3. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required and discounting it back to its present value at the appropriate risk adjusted interest rate. The balances are updated quarterly by a third party and reviewed by senior management at each reporting period. Significant unobservable inputs used in determining the fair value of these investments include preferred returns and credit spreads. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value, respectively. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of the investments in the Alternative Investment Funds at December 31, 2015 and 2014. As of December 31, 2015 As of December 31, 2014 Unobservable Quantitative Input Range Weighted average (based on fair value of investments) Range Weighted average (based on fair value of investments) Preferred return 7.32% - 14.02% 9.51% 8.50% - 14.00% 11.07% Credit spread 2.34% 2.34% n/a n/a The table below summarizes the changes in the fair value of Real Estate Fund Investments that are classified as Level 3, for the years ended December 31, 2015 and 2014. Real Estate Fund Investments for the Year Ended December 31, (Amounts in thousands) 2015 2014 Beginning balance $ 323,387 $ 2,158,889 Purchases / Additions 170,218 258,677 Sales / Transfer of assets (98,368 ) (2,222,176 ) Net realized gains 7,455 32,954 Previously recorded unrealized gains on exited investments (6,584 ) - Net unrealized gains 20,330 95,043 Ending Balance $ 416,438 $ 323,387 Interest Rate Swaps Interest rate swaps are valued by a third-party specialist. The valuation of these interest rate swaps is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the interest rate swaps and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. Interest rate swaps are classified as Level 2. Financial Assets and Liabilities Not Measured at Fair Value Financial assets not measured at fair value on our consolidated balance sheets consists of cash equivalents, and are classified as Level 1 as their carrying amount approximates their fair value, due to their short-term nature. Financial liabilities not measured at fair value include notes and mortgages payable and revolving credit facility. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current risk adjusted interest rate, which is provided by a third-party specialist. For floating rate debt, we use forward rates derived from observable market yield curves to project the expected cash flows we would be required to make under the instrument. These instruments are classified as Level 2. The following is a summary of the carrying amounts and fair value of these financial instruments as of December 31, 2015 and 2014. As of December 31, 2015 As of December 31, 2014 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Cash equivalents $ 118,561 $ 118,561 $ 401,215 $ 401,215 Total Assets $ 118,561 $ 118,561 $ 401,215 $ 401,215 As of December 31, 2015 As of December 31, 2014 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Notes and mortgages payable $ 2,941,524 $ 2,907,242 $ 2,852,287 $ 2,796,842 Revolving credit facility 20,000 20,723 - - Total Liabilities $ 2,961,524 $ 2,927,965 $ 2,852,287 $ 2,796,842 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | 13. Leases We lease office, retail and storage space to tenants under operating leases. These leases provide for the payment of fixed minimum rents over the terms of the respective lease and generally require tenants to reimburse us for operating costs and real estate taxes above their base year costs. The following is a schedule of future minimum rents under non-cancelable operating leases as of December 31, 2015. (Amounts in thousands) 2016 $ 486,384 2017 515,160 2018 515,559 2019 502,487 2020 479,075 Thereafter 3,112,430 Total $ 5,611,095 |
Fee and Other Income
Fee and Other Income | 12 Months Ended |
Dec. 31, 2015 | |
Fee And Other Income [Abstract] | |
Fee and Other Income | 14. Fee and Other Income The following table sets forth the details of our fee and other income. The Company The Predecessor Period from Period from Year Ended November 24, 2014 January 1, 2014 Year Ended (Amounts in thousands) December 31, 2015 to December 31, 2014 to November 23, 2014 December 31, 2013 Fee income Property management fees $ 5,763 $ 587 $ 15,599 $ 15,641 Acquisition and disposition fees 1,985 510 25,038 2,785 Construction fees 216 58 5,718 6,937 Other fees 2,284 21 2,743 1,063 Total fee income (1) 10,248 1,176 49,098 26,426 Other income (2) 14,745 1,629 - - Total fee and other income $ 24,993 $ 2,805 $ 49,098 $ 26,426 (1) Includes $2,308 and $222 of fee income for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014, pursuant to management agreements with our joint venture partner at 712 Fifth Avenue. (2) Other income is primarily comprised of (i) tenant payments for items such as after hour heating and cooling, freight elevator services and similar expenses and (ii) lease termination income. |
Interest and Other Income (Loss
Interest and Other Income (Loss), net | 12 Months Ended |
Dec. 31, 2015 | |
Interest And Other Income [Abstract] | |
Interest and Other Income (Loss), net | 15. Interest and Other Income (Loss), net The following table sets forth the details of interest and other income (loss), net. The Company The Predecessor Period from Period from Year Ended November 24, 2014 January 1, Year Ended (Amounts in thousands) December 31, 2015 to to December 31, 2013 Mark-to-market of investments in our deferred compensation plans (1) $ 197 $ (321 ) $ 1,706 $ 5,532 Interest and other income 674 142 773 3,875 Total interest and other income (loss) $ 871 $ (179 ) $ 2,479 $ 9,407 (1) |
Interest and Debt Expense
Interest and Debt Expense | 12 Months Ended |
Dec. 31, 2015 | |
Interest And Debt Expense [Abstract] | |
Interest and Debt Expense | 16. Interest and Debt Expense The following table sets forth the details of interest and debt expense: The Company The Predecessor Period from Period from Year Ended November January 1, 2014 Year Ended (Amounts in thousands) December 31, 2015 to December 31, 2014 to November 23, 2014 December 31, 2013 Interest and debt expense $ 165,801 $ 43,503 (1) $ 28,196 $ 29,373 Amortization of deferred financing costs 2,565 240 389 434 Total interest and debt expense $ 168,366 $ 43,743 $ 28,585 $ 29,807 (1) |
Formation Related Costs
Formation Related Costs | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Formation Related Costs | 17. Formation Related Costs The following table sets forth the details of formation related costs in connection with our initial public offering. The Company Period from Year Ended November 24, 2014 (Amounts in thousands) December 31, 2015 to December 31, 2014 Founders Grants $ - $ 71,000 Transfer taxes - 51,306 Accounting, legal and other professional fees - 21,131 Total formation related costs $ - $ 143,437 |
Incentive Compensation
Incentive Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Compensation | 18. Incentive Compensation Stock Based Compensation In November 2014, we adopted our 2014 Equity Incentive Plan (the “Plan”), under which we expect to grant future cash and equity incentive awards to our executive officers, non-employee directors, eligible employees and other key persons in order to attract, motivate and retain the talent for which we compete. Under the Plan, awards may be granted up to a maximum of 17,142,857 shares, if all awards granted are “full value awards,” as defined, and up to 34,285,714 shares, if all of the awards granted are “not full value awards,” as defined. “Full value awards” are awards such as restricted stock or long-term incentive plan (“LTIP”) units that do not require the payment of an exercise price. “Not full value awards” are awards such as stock options or stock appreciation rights that require the payment of an exercise price. As of December 31, 2015, we have 14,384,791 shares available for future grants under the Plan, if all awards granted are full value awards, as defined in the 2014 Equity Incentive Plan. We account for all stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation Stock Options We grant certain of our executive officers and other employees stock options which vest over five years and expire 10 years from the date of grant. Compensation expense related to stock option awards is recognized on a straight-line basis over the vesting period. For the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014, we recognized $1,241,000 and $79,000, respectively, of compensation expense related to stock options. The year ended December 31, 2015 includes $294,000 of expense related to the acceleration of vesting of stock options in connection with a separation agreement and release. As of December 31, 2015, there was $4,159,000 of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 4.0 years. Below is a summary of our stock option activity for year ended December 31, 2015. Shares Weighted-Average Exercise Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2014 1,489,500 $ 17.50 Granted 200,000 19.08 Exercised (200 ) 17.50 Cancelled or expired (64,850 ) 17.50 Outstanding at December 31, 2015 1,624,450 $ 17.69 8.9 $ 854,670 Options vested and expected to vest at December 31, 2015 1,524,250 $ 17.69 8.9 $ 803,000 Options exercisable at December 31, 2015 368,250 $ 17.50 8.9 $ 221,000 The fair value of stock options granted in the years ended December 31, 2015 and December 31, 2014 was $4.44 and $3.39 per stock option, respectively. The fair value of the option is estimated on the date of grant using an option-pricing model with the following weighted-average assumptions for grants for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014. December 31, 2015 December 31, 2014 Expected volatility 27.0% 23.0% Expected life 6.5 years 6.5 years Risk free interest rate 1.8% 2.1% Expected dividend yield 2.0% 2.3% LTIP Units We grant our executive officers, non-employee directors and other employees LTIP units which vest over five years and are subject to a taxable book-up event, as defined. Compensation expense related to LTIP unit awards is recognized on a straight-line basis over the vesting period. For the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014, we recognized $4,507,000 and $296,000, respectively, of compensation expense related to LTIP units. The year ended December 31, 2015 includes $1,567,000 of expense related to the acceleration of vesting of LTIP unit awards in connection with a separation agreement and release. As of December 31, 2015, there was $10,486,000 of total unrecognized compensation cost related to unvested LTIP units, which is expected to be recognized over a weighted-average period of 3.8 years. Below is a summary of LTIP unit activity under the Plan for the year ended December 31, 2015. Units Weighted-Average Grant-Date Value Unvested at December 31, 2014 885,713 $ 16.60 Granted 116,095 17.93 Vested (286,849 ) 16.54 Cancelled or expired - - Unvested at December 31, 2015 714,959 $ 16.84 The fair value of LTIP units granted for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014 was $2,081,000 and $14,700,000, respectively. Restricted Stock We grant shares of restricted stock to a non-employee director. The restricted stock vests at each annual meeting and is being recognized into expense on a straight-line basis over the vesting period. For the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014, we recognized $142,000 and $16,000, respectively, of compensation expense related to restricted stock. Below is a summary of restricted stock activity under the Plan for the year ended December 31, 2015. Units Weighted-Average Grant-Date Value Unvested at December 31, 2014 5,714 $ 17.50 Granted 5,219 19.16 Vested (5,714 ) 17.50 Cancelled or expired - - Unvested at December 31, 2015 5,219 $ 19.16 The fair value of shares of restricted stock granted for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014 was $100,000 and $100,000, respectively. 2015 Performance Plan On April 1, 2015, the compensation committee (the “Compensation Committee”) of the board of directors approved the Company’s 2015 Performance Plan (the “2015 Performance Plan”), a multi-year performance-based equity compensation program. The purpose of the 2015 Performance Plan is to further align the interests of the Company’s stockholders with that of management by encouraging the Company’s senior officers to create stockholder value in a “pay for performance” structure. Under the 2015 Performance Plan, participants may earn awards in the form of LTIP Units of the Operating Partnership based on the Company’s total return to stockholders (“TRS”) over a three-year performance measurement period beginning on April 1, 2015 and continuing through March 31, 2018, on both an absolute basis and relative basis. One-half of the award is earned if the Company outperforms a predetermined absolute TRS and the other half is earned if the Company outperforms a predetermined relative TRS. Specifically, participants begin to earn awards under the 2015 Performance Plan if the Company’s TRS for the performance measurement period equals or exceeds 21% on an absolute basis and exceeds the performance of the SNL Office REIT Index by 100 basis points on a relative basis, and awards will be fully earned if the Company’s TRS for the performance measurement period equals or exceeds 40% on an absolute basis and exceeds the performance of the SNL Office REIT Index by 700 basis points on a relative basis. Participants will not earn any awards under the 2015 Performance Plan if the Company’s TRS during the performance measurement period does not meet these minimum thresholds. The number of LTIP Units that are earned if performance is above the minimum thresholds, but below the maximum thresholds, will be determined based on linear interpolation between the percentages earned at the minimum and maximum thresholds. During the performance measurement period, participants will receive per unit distribution equal to one-tenth of the per share dividends otherwise payable to the Company’s common stockholders with respect to their LTIP Units. If the LTIP Units are ultimately earned based on the achievement of the designated performance objectives, participants will receive cash or additional LTIP Units based on the amount the participants would have received if per unit distributions during the performance measurement period for the earned LTIP Units had equaled per share dividends paid to the Company’s common stockholders less the amount of distributions participants actually received during the performance measurement period. If the designated performance objectives are achieved, awards earned under the 2015 Performance Plan will also be subject to vesting based on continued employment with the Company through April 1, 2020, with 50% of each award vesting following the conclusion of the performance period, and 25% vesting on each of April 1, 2019 and April 1, 2020. The fair value of awards granted under the 2015 Performance Plan on the date of grant was $7,930,000 and is being amortized into expense over the five-year vesting period using a graded vesting attribution method. In the year ended December 31, 2015, we recognized $1,110,000 of compensation expense related to the 2015 Performance Plan. Deferred Compensation In connection with the Formation Transactions, we assumed a deferred compensation plan (the “1993 Plan”) from our Predecessor. The 1993 Plan permits certain management employees to defer certain percentages of their compensation, as defined. The assets of the 1993 Plan remain the sole property of the Company and are subject to the claims of its general creditors. The assets of the 1993 Plan are included in “marketable securities” and “restricted cash,” with an offsetting liability included in “other liabilities” on our consolidated balance sheets. Income from the mark-to-market of investments in our deferred compensation plan is included in “interest and other income” and this amount is entirely offset by expense from the mark-to-market of plan liabilities, which is included as a component of “general and administrative” expenses on our consolidated statements of income. The 1993 Plan had a balance of $28,947,000 and $28,148,000 as of December 31, 2015 and December 31, 2014, respectively. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 19. Variable Interest Entities As of December 31, 2015, and 2014, we held variable interests in PGRESS-H, Residential Fund Feeder and Fund VII-H, which were determined to be VIEs. As of December 31, 2014, we also held variable interest in PGRESS-A, which was determined to be a VIE (See Note 5, Preferred Equity Investments Balance as of (Amounts in thousands) December 31, 2015 December 31, 2014 Investments, at fair value $ 8,025 $ 17,136 Investments, at cost 63,511 63,550 Cash and restricted cash 497 4,976 Total VIE assets $ 72,033 $ 85,662 Loans payable to noncontrolling interests $ 45,662 $ 42,195 Other liabilities 195 131 Total VIE liabilities $ 45,857 $ 42,326 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 20. Income Taxes The Company We operate and have been organized in conformity with the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes. So long as we qualify as a REIT, we generally will not be subject to U.S. federal income tax on our net income that we distribute currently to our stockholders. In order to maintain our qualification as a REIT, we are required under the Internal Revenue Code of 1986, as amended, to distribute at least 90% of our taxable income (without regard to the deduction for dividends paid and excluding net capital gains) to our stockholders and meet certain other requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate income tax rates. Even if we qualify as a REIT, we may also be subject to certain state, local and franchise taxes. We treat certain consolidated subsidiaries, and may in the future elect to treat newly formed subsidiaries, as taxable REIT subsidiaries. Taxable REIT subsidiaries may participate in non-real estate related activities and/or perform non-customary services for tenants and are subject to federal and state income tax at regular corporate tax rates. Our taxable REIT subsidiaries had a combined current income tax expense of approximately $2,545,000 and $189,000 for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014, respectively, and have immaterial differences between the financial reporting and tax basis of assets and liabilities. The following table reconciles net income attributable to Paramount Group, Inc. to estimated taxable income for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014. Period from Year Ended November 24, 2014 (Amounts in thousands) December 31, 2015 to December 31, 2014 Net (loss) income attributable to Paramount Group, Inc. $ (4,419 ) $ 57,308 Book to tax differences: Straight-line and prepaid rents (36,131 ) 6,927 Depreciation and amortization 104,399 11,691 Stock based compensation 5,794 57,740 Gain on consolidation of unconsolidated joint venture - (192,891 ) Swap breakage costs (27,147 ) (11,316 ) Unrealized gain on interest rate swaps (29,586 ) (6,832 ) Earnings of unconsolidated joint ventures, including real estate investments (12,909 ) (5,347 ) Other, net 7,356 20,832 Estimated taxable income (loss) (unaudited) $ 7,357 $ (61,888 ) Dividends distributed for the year ended December 31, 2015, were characterized for federal income tax purposes as (i) $0.289 per share or 89.2% as return of capital and (ii) $0.035 per share or 10.8% as ordinary dividends. Dividends distributed for the year ended December 31, 2015 exclude the fourth quarter 2015 dividend of $0.095 per share, which was paid on January 15, 2016 and is allocable to 2016 for federal income tax purposes. The Predecessor The companies included in our Predecessor’s combined consolidated financial statements operated in the U.S. as partnerships or corporations for U.S. federal income tax purposes. Our Predecessor, which owned the general partners of the Funds and consolidated them, was a corporate entity that was subject to federal, state, and local corporate income taxes at the entity level for their share of the profits and losses of the underlying investments. Our Predecessor accounted for income taxes using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current and deferred tax liabilities are recorded within accounts and other payables in the combined consolidated balance sheet. Below is a summary of the components of deferred tax liabilities. (Amounts in thousands) Year Ended December 31, 2013 Investment in partnerships/real estate $ 175,438 Basis adjustments 31,981 Deferred compensation (9,886 ) Net operating losses & carryovers (9,158 ) Valuation allowance 1,710 Other, net (491 ) Total deferred tax liabilities $ 189,594 Upon completion of the Formation Transactions, the assets of the partnerships held by our Predecessor were contributed to the Operating Partnership, whose parent and sole general partner was the newly formed REIT. Since a REIT is effectively a non-taxable pass-through entity due to the allowance of a dividends paid deduction for US federal income tax purposes, our Predecessor’s deferred tax assets and liabilities associated with these partnerships no longer existed. Therefore, our Predecessor’s deferred tax amounts were reversed as an adjustment to equity and is reflected as “deemed contributions” in our Predecessors consolidated statement of changes in equity. The following table summarizes our Predecessor’s tax position. Period from January 1, 2014 Year Ended (Amounts in thousands) to November 23, December 31, 2013 Income before income taxes $ 127,859 $ 313,868 Total provision for income taxes 18,461 11,029 Effective income tax rate 14.4 % 3.5 % The following table reconciles our Predecessor’s provision for income taxes to the U.S. federal statutory tax rate. Period from January 1, 2014 Year Ended to November 23, December 31, 2013 Statutory U.S. federal income tax rate 35.0% 35.0% Income passed through to common unitholders and noncontrolling interests (1) (24.1%) (31.6%) State and local income taxes 5.5% 0.8% Other (2.0%) (0.7%) Effective income tax rate (2) 14.4% 3.5% (1) (2) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 21. Earnings Per Share The following table provides a reconciliation of net (loss) income and the number of common shares used in the computation of basic income (loss) per common share - which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares, and diluted income per common share - which includes the weighted average common shares and dilutive share equivalents. Dilutive share equivalents may include our employee stock options and restricted stock. Period from Year Ended November 24, 2014 (Amounts in thousands, except per share amounts) December 31, 2015 to December 31, 2014 Numerator: Net (loss) income attributable to common stockholders - basic and diluted $ (4,419 ) $ 57,308 Denominator: Denominator for basic (loss) income per share - weighted average shares 212,107 212,107 Effect of dilutive employee stock options and restricted share awards (1) - 1 Denominator for diluted (loss) income per share - weighted average shares 212,107 212,108 (Loss) income per share - basic and diluted $ (0.02 ) $ 0.27 (1) The effect of dilutive securities for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014 excludes an aggregate of 53,281 and 53,043 weighted average share equivalents, respectively, as their effect was anti-dilutive. |
Summary of Quarterly Results (u
Summary of Quarterly Results (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results (unaudited) | 22. Summary of Quarterly Results (unaudited) The quarterly results of operations of our company and our Predecessor for the years ended December 31, 2015 and 2014 are as follows: Net (Loss) Income Net Income (Loss) attributable to attributable to Net Income (Loss) Per Common Share (Amounts in thousands, except per share amounts) Revenues the Predecessor the Company Basic Diluted The Company: December 31, 2015 $ 170,528 $ - $ 8,905 $ 0.04 $ 0.04 September 31, 2015 167,726 - 1,116 0.01 0.01 June 30, 2015 162,928 - (4,709 ) (0.02 ) (0.02 ) March 31, 2015 161,226 - (9,731 ) (0.05 ) (0.05 ) November 24, 2014 to December 31, 2014 $ 66,135 $ - $ 57,308 $ 0.27 $ 0.27 The Predecessor: October 1, 2014 to November 23, 2014 $ 36,043 $ (968 ) September 30, 2014 71,392 12,904 June 30, 2014 58,328 5,178 March 31, 2014 61,626 4,396 |
Related Party
Related Party | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party | 23 . Related Party Due to Affiliates As of December 31, 2015 and December 31, 2014, we had an aggregate of $27,299,000 of liabilities that were due to affiliates. These liabilities were comprised of a $24,500,000 note payable to CNBB-RDF Holdings, LP, which is an entity that is partially owned by Katharina Otto-Bernstein (a member of our Board of Directors), and a $2,799,000 note payable to a different entity owned by members of the Otto Family, both of which were made in lieu of certain cash distributions prior to the completion of the Formation Transactions. The notes are due in October 2017 and bear interest at a fixed rate of 0.50%. In the year ended December 31, 2015, we recognized $136,000 of interest expense in connection with these notes. Management Agreements In connection with the Formation Transactions, we assumed certain management agreements of our predecessor pursuant to which we provide property management, leasing and other related services for certain properties owned by members of the Otto Family. In the year ended December 31, 2015, we recognized an aggregate of $776,000 of fee income, in connection with these agreements, which is included as a component of “fee and other income” on our consolidated statements of income. Hamburg Trust Consulting GMBH (“HTC”) In connection with the Formation Transactions, we assumed the arrangement that our predecessor had with HTC. HTC is a licensed broker in Germany engaged to supervise selling efforts for our private equity real estate funds (or investments in feeder vehicles for these funds) to investors in Germany, including an ongoing engagement to distribute securitized notes of a feeder vehicle for Fund VIII. Pursuant to this engagement, our predecessor had agreed to pay HTC for the costs incurred to sell investments in this feeder vehicle, which primarily consist of commissions paid to third party agents, and other incremental costs incurred by HTC as a result of the engagement, plus, in each case, a mark-up of 10%. HTC is 100% owned by Albert Behler, our Chairman, Chief Executive Officer and President. In the year ended December 31, 2015, we incurred $349,000 of expense, in connection with these agreements, which is included as a component of “acquisition and transaction related costs” on our consolidated statements of income. Other In the year ended December 31, 2015, certain of the Property Funds that were controlled by our Predecessor, received an aggregate of $5,482,000 (of which our share was $121,000), for the reimbursement of certain costs and expenses, from CNBB-RDF Holdings, LP. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 24. Commitments and Contingencies Insurance We carry commercial general liability coverage on our properties, with limits of liability customary within the industry. Similarly, we are insured against the risk of direct and indirect physical damage to our properties including coverage for the perils of floods, earthquakes and windstorms. Our policies also cover the loss of rental income during an estimated reconstruction period. Our policies reflect limits and deductibles customary in the industry and specific to the buildings and portfolio. We also obtain title insurance policies when acquiring new properties. We currently have coverage for losses incurred in connection with both domestic and foreign terrorist-related activities. While we do carry commercial general liability insurance, property insurance and terrorism insurance with respect to our properties, these policies include limits and terms we consider commercially reasonable. In addition, there are certain losses (including, but not limited to, losses arising from known environmental conditions or acts of war) that are not insured, in full or in part, because they are either uninsurable or the cost of insurance makes it, in our belief, economically impractical to maintain such coverage. Should an uninsured loss arise against us, we would be required to use our own funds to resolve the issue, including litigation costs. We believe the policy specifications and insured limits are adequate given the relative risk of loss, the cost of the coverage and industry practice and, in consultation with our insurance advisors, we believe the properties in our portfolio are adequately insured. Other Commitments and Contingencies We are a party to various claims and routine litigation arising in the ordinary course of business. Some of these claims or others, to which we may be subject from time to time, including claims arising specifically from the Formation Transactions, may result in defense costs, settlements, fines or judgments against us, some of which are not, or cannot be, covered by insurance. Payment of any such costs, settlements, fines or judgments that are not insured could have an adverse impact on our financial position and results of operations. Should any litigation arise in connection with the Formation Transactions, we would contest it vigorously. The terms of our mortgage debt and certain side letters in place include certain restrictions and covenants which may limit, among other things, certain investments, the incurrence of additional indebtedness and liens and the disposition or other transfer of assets and interests in the borrower and other credit parties, and requires compliance with certain debt yield, debt service coverage and loan to value ratios. In addition, our revolving credit facility contains representations, warranties, covenants, other agreements and events of default customary for agreements of this type with comparable companies. As of Decembers 31, 2015, we believe we are in compliance with all of our covenants. 718 Fifth Avenue - Put Right Prior to the Formation Transactions, an affiliate of our Predecessor owned a 25.0% interest in 718 Fifth Avenue, a five-story building containing 19,050 square feet of prime retail space that is located on the southwest corner of 56th Street and Fifth Avenue in New York, (based on its 50.0% interest in a joint venture that held a 50.0% tenancy-in-common interest in the property). Prior to the completion of the Formation Transactions, this interest was sold to its partner in the 718 Fifth Avenue joint venture, who is also our partner in the joint venture that owns 712 Fifth Avenue, New York, New York. In connection with this sale, we granted our joint venture partner a put right, pursuant to which the 712 Fifth Avenue joint venture would be required to purchase the entire direct or indirect interests held by our joint venture partner or its affiliates in 718 Fifth Avenue at a purchase price equal to the fair market value of such interests. The put right may be exercised at any time after the four-year anniversary of the sale of its interest in 718 Fifth Avenue (i.e., September 10, 2018) upon 12 months written notice with the actual purchase occurring no earlier than the five-year anniversary of such sale (i.e., September 10, 2019). If the put right is exercised and the 712 Fifth Avenue joint venture acquires the 50.0% tenancy-in-common interest in the property that will be held by our joint venture partner following the sale of its interest to our joint venture partner, we will own a 25.0% interest in 718 Fifth Avenue. |
Segments Disclosure
Segments Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segments | 25. Segments The Company Upon completion of the Offering and Formation Transactions, we acquired substantially all of the assets of our Predecessor and substantially all of the assets of the Property Funds that it controlled. Our business, following the Formation Transactions, is comprised of one reportable segment. We have determined that our properties have similar economic characteristics to be aggregated into one reportable segment (operating, leasing and managing office properties). Our determination was based, in part, on our method of internal reporting. The following tables provide selected results for each reportable segment for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014. Year Ended December 31, 2015 Owned (Amounts in thousands) Properties Other Total Income Statement Data: Revenues Rental income $ 583,825 $ 2,705 $ 586,530 Tenant reimbursement income 50,885 - 50,885 Fee and other income 14,737 10,256 24,993 Total revenues 649,447 12,961 662,408 Total expenses 541,774 50,015 591,789 Operating income (loss) 107,673 (37,054 ) 70,619 Income from real estate fund investments - 37,975 37,975 Income from unconsolidated joint ventures 6,734 116 6,850 Unrealized gain on interest rate swaps 75,760 - 75,760 Interest and other income, net 367 504 871 Interest and debt expense (160,058 ) (8,308 ) (168,366 ) Net income (loss) before income taxes 30,476 (6,767 ) 23,709 Income tax (expense) benefit 310 (2,876 ) (2,566 ) Net income (loss) 30,786 (9,643 ) 21,143 Add: Depreciation and amortization 293,433 1,191 294,624 General and administrative - 42,056 42,056 Interest and debt expense 160,058 8,308 168,366 Transfer taxes due in connection with the sale of shares by a former joint venture partner - 5,872 5,872 Acquisition and transaction costs - 4,483 4,483 Income tax expense (benefit) (310 ) 2,876 2,566 Net Operating Income from unconsolidated joint ventures 16,210 370 16,580 Less: Income from real estate fund investments - (37,975 ) (37,975 ) Income from unconsolidated joint ventures (6,734 ) (116 ) (6,850 ) Fee income - (10,248 ) (10,248 ) Unrealized gain on interest rate swaps (75,760 ) - (75,760 ) Interest and other income, net (367 ) (504 ) (871 ) Net Operating Income (1) $ 417,316 $ 6,670 $ 423,986 Balance Sheet data: Total assets $ 8,172,529 $ 621,614 $ 8,794,143 Total liabilities 3,309,104 174,489 3,483,593 Total equity $ 4,863,425 $ 447,125 $ 5,310,550 Period from November 24, 2014 to December 31, 2014 Owned (Amounts in thousands) Properties Other Total Income Statement data: Revenues Rental income $ 57,169 $ 296 $ 57,465 Tenant reimbursement income 5,865 - 5,865 Fee and other income 1,629 1,176 2,805 Total revenues 64,663 1,472 66,135 Total expenses 61,091 1,608 62,699 Operating income 3,572 (136 ) 3,436 Income from real estate fund investments - 1,412 1,412 Income from unconsolidated joint ventures 938 - 938 Unrealized gain on interest rate swaps 15,084 - 15,084 Interest and other income (loss), net 30 (209 ) (179 ) Interest and debt expense (41,633 ) (2,110 ) (43,743 ) Formation related costs - (143,437 ) (143,437 ) Gain on consolidation of unconsolidated joint ventures - 239,716 239,716 Net income (loss) before income taxes (22,009 ) 95,236 73,227 Income tax expense (475 ) (30 ) (505 ) Net income (loss) (22,484 ) 95,206 72,722 Add: Depreciation and amortization expense 34,378 103 34,481 General and administrative expenses 91 2,116 2,207 Interest and debt expense 41,633 2,110 43,743 Formation related costs - 143,437 143,437 Income tax expense 475 30 505 NOI from unconsolidated joint ventures 1,680 - 1,680 Less: Income from unconsolidated joint ventures (938 ) - (938 ) Fee income - (1,176 ) (1,176 ) Unrealized gain on interest rate swaps (15,084 ) - (15,084 ) Interest and other (income) loss, net (30 ) 209 179 Gain on consolidation of unconsolidated joint ventures - (239,716 ) (239,716 ) Net Operating Income (1) $ 39,721 $ 2,319 $ 42,040 Balance Sheet data: Total assets $ 8,345,966 $ 684,475 $ 9,030,441 Total liabilities 3,350,798 124,690 3,475,488 Total equity $ 4,995,168 $ 559,785 $ 5,554,953 (1) The Predecessor Our Predecessor historically operated an integrated business that consisted of three reportable segments, (i) Owned Properties, (ii) Managed Funds and (iii) a Management Company. The Owned Properties segment consisted of properties in which our Predecessor had a direct or indirect ownership interest, other than properties that it owned through its private equity real estate funds. The Managed Funds segment consisted of the private equity real estate funds. In addition, our Predecessor included a Management Company that performed property management and asset management services and certain general and administrative level functions, including legal and accounting, as a separate reportable segment. The following tables provide selected results for each reportable segment for the period from January 1, 2014 to November 23, 2014 and the year ended December 31, 2013. Period from January 1, 2014 to November 23, 2014 Owned Managed Management (Amounts in thousands) Properties Funds Company Eliminations Total Income Statement data: Revenues Rental income $ 27,774 $ 2,434 $ - $ - $ 30,208 Tenant reimbursement income 1,646 - - - 1,646 Distributions from real estate fund investments - 17,083 - - 17,083 Realized and unrealized gains, net - 129,354 - - 129,354 Fee and other income - - 74,686 (25,588 ) 49,098 Total revenues 29,420 148,871 74,686 (25,588 ) 227,389 Total expenses 20,553 27,995 54,032 (25,588 ) 76,992 Operating income 8,867 120,876 20,654 - 150,397 Income from unconsolidated joint ventures 4,241 - 48,683 (48,683 ) 4,241 Unrealized loss on interest rate swaps - (673 ) - - (673 ) Interest and other income, net 2,004 388 87 - 2,479 Interest and debt expense (11,157 ) (17,323 ) (105 ) - (28,585 ) Net income before income taxes 3,955 103,268 69,319 (48,683 ) 127,859 Income tax expense - - (18,461 ) - (18,461 ) Net income 3,955 103,268 50,858 (48,683 ) 109,398 Net income attributable to noncontrolling interests - (87,888 ) - - (87,888 ) Net income attributable to the Predecessor $ 3,955 $ 15,380 $ 50,858 $ (48,683 ) $ 21,510 Year Ended December 31, 2013 Owned Managed Management (Amounts in thousands) Properties Funds Company Eliminations Total Income Statement data: Revenues Rental income $ 30,406 $ - $ - $ - $ 30,406 Tenant reimbursement income 1,821 - - - 1,821 Distributions from real estate fund investments - 29,184 - - 29,184 Realized and unrealized gains, net - 332,053 - - 332,053 Fee and other income - - 54,298 (27,872 ) 26,426 Total revenues 32,227 361,237 54,298 (27,872 ) 419,890 Total expenses 26,369 29,417 60,385 (27,872 ) 88,299 Operating income (loss) 5,858 331,820 (6,087 ) - 331,591 Income from unconsolidated joint ventures 1,062 - 74,695 (74,695 ) 1,062 Unrealized gain on interest rate swaps - 1,615 - - 1,615 Interest and other income, net 5,891 1,152 2,364 - 9,407 Interest and debt expense (12,443 ) (17,219 ) (145 ) - (29,807 ) Net income before income taxes 368 317,368 70,827 (74,695 ) 313,868 Income tax expense - - (11,029 ) - (11,029 ) Net income 368 317,368 59,798 (74,695 ) 302,839 Net income attributable to noncontrolling interests - (286,325 ) - - (286,325 ) Net income attributable to the Predecessor $ 368 $ 31,043 $ 59,798 $ (74,695 ) $ 16,514 Balance Sheet data: Total assets $ 552,474 $ 2,329,153 $ 373,173 $ (332,109 ) $ 2,922,691 Total liabilities 350,884 508,481 96,596 (58,714 ) 897,247 Total equity $ 201,590 $ 1,820,672 $ 276,577 $ (273,395 ) $ 2,025,444 |
Schedule-II - Valuation and Qua
Schedule-II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E Additions Balance at Charged Uncollectible Balance Beginning Against accounts at End (Amounts in thousands) of Year Operations Written-off of Year The Company: Year Ended December 31, 2015 Allowance for doubtful accounts $ 333 $ 87 $ (55 ) $ 365 For the period from November 24, 2014 to December 31, 2014 Allowance for doubtful accounts $ 257 (1) $ 76 $ - $ 333 The Predecessor: For the period from January 1, 2014 to November 23, 2014 Allowance for doubtful accounts $ - $ - $ - $ - Year Ended December 31, 2013 Allowance for doubtful accounts $ - $ - $ - $ - (1) Transactions |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate And Accumulated Depreciation Disclosure [Abstract] | |
Schedule III - Real Estate and Accumulated Depreciation | PARAMOUNT GROUP, INC. SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F COLUMN G COLUMN H COLUMN I Life on which depreciation Costs capitalized Gross amount at which Accumulated in latest (Amounts in thousands) Initial cost to company subsequent to acquisition carried at close of period depreciation income Building and Building and Buildings and and Date of Date statement Description Encumbrances Land Improvements Land Improvements Land Improvements Total (1) amortization construction acquired is computed 1633 Broadway $ 1,013,544 $ 502,846 $ 1,398,341 $ - $ 38,530 $ 502,846 $ 1,436,871 $ 1,939,717 $ (43,602 ) 1971 11/2014 5 to 40 Years 1301 Avenue of the Americas - 406,039 1,051,697 - 15,433 406,039 1,067,130 1,473,169 (33,761 ) 1963 11/2014 5 to 40 Years 31 West 52nd Street 413,490 221,318 604,994 - 3,468 221,318 608,462 829,780 (19,464 ) 1987 11/2014 5 to 40 Years 1325 Avenue of the Americas - 174,688 370,553 - 9,464 174,688 380,017 554,705 (12,820 ) 1989 11/2014 5 to 40 Years 900 Third Avenue 274,337 103,741 296,031 - 3,117 103,741 299,148 402,889 (10,791 ) 1983 11/2014 5 to 40 Years Total New York 1,701,371 1,408,632 3,721,616 - 70,012 1,408,632 3,791,628 5,200,260 (120,438 ) 425 Eye Street - 93,669 98,088 - 2,316 93,669 100,404 194,073 (73,284 ) 1973 11/2014 5 to 40 Years Liberty Place 84,000 46,401 96,422 - 9,571 46,401 105,993 152,394 (4,025 ) 1993 11/2014 5 to 40 Years 1899 Pennsylvania Avenue 89,116 52,568 94,874 - 3,577 52,568 98,451 151,019 (3,318 ) 1915 11/2014 5 to 40 Years 2099 Pennsylvania Avenue - 50,631 103,992 - 9,994 50,631 113,986 164,617 (3,054 ) 2001 11/2014 5 to 40 Years Waterview 210,000 78,300 297,669 - 36,412 78,300 334,081 412,381 (3,579 ) 2007 05/2007 5 to 40 Years Total Washington, D.C. 383,116 321,569 691,045 - 61,870 321,569 752,915 1,074,484 (87,260 ) One Market Plaza 857,037 288,744 988,014 33,095 288,744 1,021,109 1,309,853 (33,494 ) 1976 11/2014 5 to 40 Years Total California 857,037 288,744 988,014 - 33,095 288,744 1,021,109 1,309,853 (33,494 ) Residential Development Fund ("75 Howard") - 23,126 41,524 - 4,497 23,126 46,021 69,147 (1,861 ) 03/2014 5 to 40 Years Other - - - - (1,627 ) - (1,627 ) (1,627 ) (36 ) 11/2014 5 to 40 Years Total $ 2,941,524 $ 2,042,071 $ 5,442,199 $ - $ 167,847 $ 2,042,071 $ 5,610,046 $ 7,652,117 $ (243,089 ) (1) The net basis of the Company’s assets and liabilities for tax purposes is approximately $2.3 billion lower than the net amount reported for financial statement purposes. Year Ended December 31, (Amounts in thousands) 2015 2014 2013 Rental Property Balance at beginning of period $ 7,530,239 $ 414,998 $ 414,855 Acquisitions 64,650 - Acquisition of properties in connection with the Formation Transactions - 7,043,650 - Additions during the period: Land - - - Buildings and improvements 123,277 9,676 147 Assets sold and written-off (1,399 ) (2,735 ) (4 ) Balance at end of period $ 7,652,117 $ 7,530,239 $ 414,998 Accumulated Depreciation Balance at beginning of period $ 81,050 $ 57,689 $ 48,425 Additions charged to expense 163,438 26,096 9,268 Accumulated depreciation on assets sold and written-off (1,399 ) (2,735 ) (4 ) Balance at end of period $ 243,089 $ 81,050 $ 57,689 |
Basis of Presentation and Sig38
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated and combined financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. These consolidated and combined financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. All significant inter-company amounts have been eliminated. Our Predecessor’s combined financial statements included all the accounts of our Predecessor, including its interests in (i) the Funds, (ii) Waterview and (iii) the three partially-owned properties. Our Predecessor evaluated each of the Funds pursuant to the control model of Accounting Standards Codification (“ASC”) 810-20, Consolidation—Control of Partnerships and Similar Entities Financial Services—Investment Companies Upon completion of the Offering and the Formation Transactions, we acquired substantially all of the assets of our Predecessor and all of the assets of the Property Funds that it controlled, other than their interests in 60 Wall Street, 50 Beale Street, and a residual 2.0% interest in One Market Plaza. In addition, as part of the Formation Transactions, we also acquired the interests of certain unaffiliated third parties in 1633 Broadway, 31 West 52nd Street and 1301 Avenue of the Americas. These transactions were accounted for as transactions among entities under common control. However, since the assets that we acquired from our Predecessor are no longer held by funds which qualify for investment company accounting, we account for these assets following the Formation Transactions using historical cost accounting. As a result, our consolidated financial statements following the Formation Transactions differ significantly from, and are not comparable with, the historical financial position and results of operations of our Predecessor. |
Significant Accounting Policies | Significant Accounting Policies |
Rental Property | Rental Property Rental property is carried at cost less accumulated depreciation and amortization. Betterments, major renovations and certain costs directly related to the improvement of rental properties are capitalized. Maintenance and repair expenses are charged to expense as incurred. Depreciation is recognized on a straight-line basis over estimated useful lives of the assets, which range from 5 to 40 years. Tenant improvements are amortized on a straight-line basis over the lives of the related leases, which approximate the useful lives of the assets. Upon the acquisition of real estate, we assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above-market leases and acquired in-place leases) and acquired liabilities (such as acquired below-market leases) and allocate the purchase price based on these assessments. We assess fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known trends, and market/economic conditions. We record acquired intangible assets (including acquired above-market leases and acquired in-place leases) and acquired intangible liabilities (including below-market leases) at their estimated fair value. We amortize acquired above-and below-market leases as a decrease or increase to rental income, respectively, over the lives of the respective leases. Amortization of acquired in-place leases is included as a component of depreciation and amortization. Our properties, including any related intangible assets, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows, anticipated holding periods, or market conditions change, our evaluation of impairment losses may be different and such differences could be material to our consolidated financial statements. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Plans to hold properties over longer periods decrease the likelihood of recording impairment losses. |
Variable Interest Entities and Investments in Unconsolidated Joint Ventures | Variable Interest Entities and Investments in Unconsolidated Joint Ventures We consolidate variable interest entities (“VIEs”) in which we are considered to be the primary beneficiary. VIEs are entities in which the equity investors do not have sufficient equity at risk to finance their endeavors without additional financial support or that the holders of the equity investment at risk do not have a controlling financial interest. The primary beneficiary is defined by the entity having both of the following characteristics: (i) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance, and (ii) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. For joint ventures that are not VIEs, we consolidate entities for which we have significant decision making control over the joint ventures’ operations. Our judgment with respect to our level of influence or control of an entity involves the consideration of various factors including the form of our ownership interest, our representation in the entity’s governance, the size of our investment, estimates of future cash flows, our ability to participate in policy making decisions and the rights of the other investors to participate in the decision making process and to replace us as manager and/or liquidate the joint venture, if applicable. We account for investments under the equity method when the requirements for consolidation are not met, and we have significant influence over the operations of the investee. Equity method investments are initially recorded at cost and subsequently adjusted for our share of net income or loss and cash contributions and distributions each period. Investments accounted for under the equity method are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. An impairment loss is measured based on the excess of the carrying amount of an investment over its estimated fair value. Impairment analyses are based on current plans, intended holding periods and available information at the time the analyses are prepared. Investments that do not qualify for consolidation or equity method accounting are accounted for on the cost method. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and short-term highly liquid investments with original maturities of three months or less. The majority of our cash and cash equivalents are held at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation limit. To date, we have not experienced any losses on our invested cash. |
Restricted Cash | Restricted Cash Restricted cash consists of security deposits held on behalf of our tenants and cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements and cash restricted in connection with our deferred compensation plan. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of tenants to make required payments under the lease agreements. We also maintain an allowance for deferred rent receivable. This receivable arises from earnings recognized in excess of amounts currently due under the lease agreements. Management exercises judgment in establishing these allowances and considers payment history and current credit status in developing these estimates. |
Deferred Charges | Deferred Charges Deferred charges include deferred lease costs and deferred financing costs. Deferred lease costs consist of fees and direct costs related to successful leasing activities. Such costs are amortized on a straight-line basis over the lives of the related leases as a component of depreciation and amortization. Deferred financing costs consist of fees and direct costs incurred in obtaining financing. Such costs are amortized over the terms of the related agreements as a component of interest expense. |
Income Taxes | Income Taxes We operate and have been organized in conformity with the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes. So long as we qualify as a REIT, we generally will not be subject to U.S. federal income tax on our net income that we distribute currently to our stockholders. In order to maintain our qualification as a REIT, we are required under the Internal Revenue Code of 1986, as amended, to distribute at least 90% of our taxable income (without regard to the deduction for dividends paid and excluding net capital gains) to our stockholders and meet certain other requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate income tax rates. Even if we qualify as a REIT, we may also be subject to certain state, local and franchise taxes. Under certain circumstances, U.S. federal income and excise taxes may be due on our undistributed taxable income. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We manage our market risk on variable rate debt by entering into interest rate swaps to fix the rate on all or a portion of the debt for varying periods through maturity. These interest rate swaps are accounted for as derivative instruments and, pursuant to ASC 815, are recorded on our balance sheet at fair value. Changes in the fair value of interest rate swaps are accounted for based on the hedging relationship and their designation and qualification as either fair value hedges or cash flow hedges. Changes in the fair value of interest rate swaps that are not designated as hedges are recognized in earnings. Changes in the fair value of interest rate swaps that are designated as cash flow hedges are recognized in accumulated other comprehensive income (outside of earnings). |
Revenue Recognition | Revenue Recognition Rental Income Rental income includes base rents that each tenant pays in accordance with the terms of its respective lease and is reported on a straight-line basis over the non-cancellable term of the lease, which includes the effects of rent steps and rent abatements under the leases. We commence rental revenue recognition when the tenant takes possession of the leased space or controls the physical use of the leased space and the leased space is substantially ready for its intended use. Differences between rental income recognized and amounts due under the respective lease agreements are recorded as an increase or decrease to “deferred rent receivable.” Rental income also includes the amortization of acquired above-and below-market leases, net. Tenant Reimbursement Income Tenant reimbursement income includes revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the property. This revenue is accrued in the same period as the expenses are incurred. Fee and Other Income Fee and other income includes management fees earned pursuant to contractual agreements. This revenue is recognized as the related services are performed. Fee and other income also includes lease termination. |
Segment Reporting | Segment Reporting Upon completion of the Offering and Formation Transactions, we acquired substantially all of the assets of our Predecessor and substantially all of the assets of the Property Funds that it controlled. Our business, following the Formation Transactions, is comprised of one reportable segment. We have determined that our properties have similar economic characteristics to be aggregated into one reportable segment (operating, leasing and managing office properties). Our determination was based primarily on our method of internal reporting. Our Predecessor historically operated an integrated business that consisted of three reportable segments, (i) Owned Properties, (ii) Managed Funds and (iii) a Management Company. The Owned Properties segment consisted of properties in which our Predecessor had a direct or indirect ownership interest, other than properties that it owned through its private equity real estate funds. The Managed Funds segment consisted of the private equity real estate funds. In addition, our Predecessor included a Management Company that performed property management and asset management services and certain general and administrative level functions, including legal and accounting, as a separate reportable segment. |
Recently Issued Accounting Literature | Recently Issued Accounting Literature In May 2014, the FASB issued an update ("ASU 2014-09") Revenue from Contracts with Customers. In June 2014, the FASB issued an update (“ASU 2014-12”) to ASC Topic 718, Compensation – Stock Compensation In February 2015, the FASB issued an update (“ASU 2015-02”) Amendments to the Consolidation Analysis Consolidation. Financial Services-Investment Companies In April 2015, the FASB issued an update (“ASU 2015-03”) Simplifying the Presentation of Debt Issuance Costs Interest – Imputation of Interest. ”) Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at 18 June 2015 EITF Meetin g . ASU 2015-15 clarifies the exclusion of line-of-credit arrangements from the scope of ASU 2015-03. Therefore, debt issuance costs related to line-of-credit arrangements can be deferred and presented as an asset that is subsequently amortized over the time of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. In September 2015, the FASB issued an update (“ASU 2015-16”) Simplifying the Accounting for Measurement-Period Adjustments Business Combinations. |
Real Estate Fund Investment (Ta
Real Estate Fund Investment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate Investments [Abstract] | |
Summary of Fair Value of Fund Investment | Below is a summary of the fair value of the fund investments on our consolidated balance sheets. (Amounts in thousands) As of Balance Sheets December 31, 2015 December 31, 2014 Real Estate Fund Investments: Property Funds $ 248,824 $ 183,216 Alternative Investment Funds 167,614 140,171 Total $ 416,438 $ 323,387 |
Schedule of Income from Fund Investment | Below is a summary of income from the fund investments on our consolidated statements of income. Period from (Amounts in thousands) Year Ended November 24, Income Statements December 31, 2015 to December 31, 2014 Investment income $ 13,406 $ 3,334 Investment expenses 1,132 565 Net investment income 12,274 2,769 Net realized gains 11,955 50 Previously recorded unrealized gains on exited investments (6,584 ) - Net unrealized gains (losses) 20,330 (1,407 ) Income from real estate fund investments $ 37,975 $ 1,412 |
Summary of Property Funds Ownership Interests in These Funds and Funds Ownership Interest in Underlying Properties | The following is a summary of the Property Funds, our ownership interests in these Funds and Funds’ ownership interest in the underlying properties. As of December 31, 2015 % Ownership 60 Wall Street One Market Plaza 50 Beale Street 670 Broadway Fund II 10.0 % 46.3 % - - - Fund III 3.1 % 16.0 % 2.0 % - - Fund VII/VII-H 7.2 % - - 42.8 % 100.0 % Total Property Funds 62.3 % 2.0 % 42.8 % 100.0 % Other Investors 37.7 % 98.0 % (1) 57.2 % - Total 100.0 % 100.0 % 100.0 % 100.0 % (1) Includes a 49.0% ownership interest held by us. |
Summary of Ownership Interests in Alternative Investment Funds | The following is a summary of our ownership interests in the Alternative Investment Funds and the Funds’ underlying investments, as of December 31, 2015. (Amounts in thousands) % As of Fund/Investment Investment Type Ownership Interest Rate Initial Maturity December 31, 2015 December 31, 2014 Fund VIII 26 Broadway (1) Mezzanine Loan 1.7% 8.3% Jan-2022 $ 46,678 $ 45,947 1440 Broadway (2) Mezzanine Loan 1.7% 6.4% Oct-2019 40,619 - 700 Eighth Avenue (3) Mortgage/Mezzanine Loans 1.7% 6.4% Dec-2016 80,317 - Total Mortgage and Mezzanine Loans $ 167,614 $ 45,947 PGRESS Funds 470 Vanderbilt Avenue (4) Preferred Equity Investment $ - $ 35,039 2 Herald Square (5) Preferred Equity Investment - 18,107 One Court Square (6) Preferred Equity Investment - 41,078 Total Preferred Equity Investments $ - $ 94,224 Total Alternative Investment Funds $ 167,614 $ 140,171 (1) The loan is secured by the equity interests in the owner of 26 Broadway, an 836,000 square foot office building, located in the financial district of Manhattan. The loan has a fixed interest rate and is subordinate to $220,000 of other debt. (2) On September 30, 2015, Fund VIII closed on a $40,000 mezzanine loan secured by the equity interests in the owner of 1440 Broadway, a 751,546 square foot office and retail property located in Manhattan. The loan bears interest at LIBOR plus 600 bps, and has a one-year extension option and is subordinate to $265,000 of other debt. (3) On November 24, 2015, Fund VIII closed on a senior mortgage and mezzanine loan aggregating $80,000 secured by 700 Eighth Avenue, a 26,126 square foot retail property located in Manhattan. The loans bear interest at LIBOR plus 600 bps and have one-year extension options. (4) Represents a preferred equity investment in a partnership that owns 470 Vanderbilt Avenue, a 650,000 square foot office building located in Brooklyn, New York. (See Note 5, Preferred Equity Investments (5) Represents a preferred equity investment in a partnership that owns 2 Herald Square, a 369,000 square foot office and retail property in Manhattan. (See Note 5, Preferred Equity Investments (6) On September 1, 2015, PGRESS and PGRESS-H redeemed their preferred equity investment in One Court Square for $42,475, resulting in a realized gain on the investment of $7,455. Below is a summary of realized and unrealized gains from real estate fund investments on our consolidated statements of income. The Predecessor Period from (Amounts in thousands) January 1, 2014 Year Ended Income Statements to November 23, 2014 December 31, 2013 Net realized gains (losses) on real estate fund investments 43,309 (694 ) Previously recorded unrealized (gains) losses on exited investments (10,405 ) 10,571 Net unrealized gains on real estate fund investments 96,450 322,176 Realized and unrealized gains, net $ 129,354 $ 332,053 |
Schedule of Asset Management Fees | Below is a summary of the asset management fees earned by our Predecessor. The Predecessor Period from (Amounts in thousands) January 1, 2014 Year Ended Income Statements to November 23, 2014 December 31, 2013 Gross asset management fees $ 23,701 $ 26,180 Eliminated fees (1) (1,078 ) (1,118 ) Net asset management fees $ 22,623 $ 25,062 (1) Eliminated fees reflect a reduction in asset management fees from the general partner interest in each of the Funds. |
Schedule of Amounts Recognized in Income Statement | The following tables summarizes the income statements for the period January 1, 2014 to November 23, 2014 and for the year ended December 31, 2013 for each of the Property Funds’ underlying investments. (Amounts in thousands) Property Funds' Underlying Investments for the Period from January 1, 2014 to November 23, 2014 Statements of Income 1633 Broadway 900 Third Ave 31 West 52nd St 1301 Ave of the Americas One Market Plaza Liberty Place 1899 Penn. Ave 2099 Penn. Ave 425 Eye St Revenues: Rental income $ 136,422 $ 31,219 $ 67,453 $ 104,220 $ 65,314 $ 5,823 $ 7,249 $ 165 $ 9,501 Tenant reimbursement income 12,742 3,001 5,126 8,252 1,191 1,884 3,648 6 879 Fee and other income 2,951 1,680 3,360 9,667 3,242 50 115 280 319 Total revenue 152,115 35,900 75,939 122,139 69,747 7,757 11,012 451 10,699 Expenses: Building operating 50,830 14,904 21,516 46,679 25,119 3,911 4,674 4,147 5,148 Related party management fees 2,864 914 1,244 1,580 701 214 254 38 339 Operating 53,694 15,818 22,760 48,259 25,820 4,125 4,928 4,185 5,487 Depreciation and amortization 10,990 6,085 23,438 37,212 31,422 - 3,484 - 5,022 General and administrative 118 113 119 167 4,545 66 58 798 71 Total expenses 64,802 22,016 46,317 85,638 61,787 4,191 8,470 4,983 10,580 Operating income (loss) 87,313 13,884 29,622 36,501 7,960 3,566 2,542 (4,532 ) 119 Unrealized gain on interest rate swaps 25,226 5,759 8,466 12,042 20,848 - - - - Interest and debt expense (46,315 ) (13,269 ) (20,092 ) (54,436 ) (48,486 ) (3,488 ) (4,051 ) (4,578 ) (4,548 ) Unrealized depreciation on investment in real estate - - - - - (2,772 ) - (749 ) - Net income (loss) before taxes 66,224 6,374 17,996 (5,893 ) (19,678 ) (2,694 ) (1,509 ) (9,859 ) (4,429 ) Income tax (expense) benefit - - - - - (105 ) 53 - (2,430 ) Net income (loss) $ 66,224 $ 6,374 $ 17,996 $ (5,893 ) $ (19,678 ) $ (2,799 ) $ (1,456 ) $ (9,859 ) $ (6,859 ) (Amounts in thousands) Property Funds' Underlying Investments for the Year Ended December 31, 2013 Statements of Income 1633 Broadway 900 Third Ave 31 West 52nd St 1301 Ave of the Americas One Market Plaza Liberty Place 1899 Penn. Ave 2099 Penn. Ave 425 Eye St Revenues: Rental income $ 130,590 $ 33,601 $ 77,257 $ 97,576 $ 77,265 $ 8,421 $ 9,686 $ 432 $ 10,167 Tenant reimbursement income 13,538 3,036 5,100 9,693 1,707 2,528 4,807 74 4 Fee and other income 2,994 732 1,154 2,598 7,778 82 153 58 801 Total revenue 147,122 37,369 83,511 109,867 86,750 11,031 14,646 564 10,972 Expenses: Building operating 54,867 16,150 22,905 51,247 29,985 4,286 5,066 4,531 5,448 Related party management fees 2,870 980 1,295 1,646 832 275 330 13 354 Operating 57,737 17,130 24,200 52,893 30,817 4,561 5,396 4,544 5,802 Depreciation and amortization 11,187 6,349 22,688 37,075 37,847 - 4,139 - 5,502 General and administrative 251 156 130 215 236 63 69 66 75 Total expenses 69,175 23,635 47,018 90,183 68,900 4,624 9,604 4,610 11,379 Operating income (loss) 77,947 13,734 36,493 19,684 17,850 6,407 5,042 (4,046 ) (407 ) Unrealized gain on interest rate swaps 34,711 9,985 15,993 21,275 36,378 - - 1,101 427 Interest and debt expense (52,563 ) (14,872 ) (22,307 ) (68,540 ) (55,170 ) (3,887 ) (4,514 ) (5,285 ) (5,664 ) Unrealized (depreciation) appreciation on investment in real estate - - - - - (2,066 ) - 1,965 - Net income (loss) before taxes 60,095 8,847 30,179 (27,581 ) (942 ) 454 528 (6,265 ) (5,644 ) Income tax (expense) benefit - - - - - (45 ) (54 ) - 2,492 Net income (loss) $ 60,095 $ 8,847 $ 30,179 $ (27,581 ) $ (942 ) $ 409 $ 474 $ (6,265 ) $ (3,152 ) |
Preferred Equity Investments (T
Preferred Equity Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule Of Investments [Abstract] | |
Schedule Of Preferred Equity Investments | The following table is a summary of the preferred equity investments. (Amounts in thousands) As of Preferred Equity Investment % Ownership Dividend Rate Initial Maturity December 31, 2015 December 31, 2014 470 Vanderbilt Avenue (1) 25.4% 10.3% Feb-2019 $ 35,305 $ - 2 Herald Square (2) 25.4% 10.3% Apr-2017 18,636 - Total Preferred Equity Investments $ 53,941 $ - (1) Represents a $33,750 preferred equity investment in a partnership that owns 470 Vanderbilt Avenue, a 650,000 square foot office building located in Brooklyn, New York. The preferred equity has a dividend rate of 10.3%, of which 8.0% is being paid in cash through February 2016 and will increase thereafter to 10.3% through maturity, and the unpaid portion accretes to the balance of the investment. (2) Represents a $17,500 preferred equity investment in a partnership that owns 2 Herald Square, a 369,000 square foot office and retail property in Manhattan. The preferred equity has a dividend rate of 10.3%, of which 7.0% is paid currently and the remainder accretes to the balance of the investment. The preferred equity investment has two one-year extension options. |
Investments in Unconsolidated41
Investments in Unconsolidated Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Investments in Unconsolidated Joint Ventures | The following table summarizes our investments in unconsolidated joint ventures as of December 31, 2015 and December 31, 2014. % Ownership at As of (Amounts in thousands) December December 31, 2015 December 31, 2014 Investments: 712 Fifth Avenue 50.0 % $ 3,577 $ 1,697 Oder-Center, Germany 9.5 % 3,525 4,052 $ 7,102 $ 5,749 |
Summary of Income from Unconsolidated Joint Ventures | The following table summarizes our income from unconsolidated joint ventures for the periods set forth below. The The Predecessor % Period from Period from Ownership Year Ended November January 1, Year Ended (Amounts in thousands) December December 31, 2015 to to December 31, 2013 Our share of Net Income (Loss): 712 Fifth Avenue 50.0 % $ 6,734 $ 938 $ 4,141 $ 2,612 Oder-Center, Germany (1) 9.5 % 116 - - - 1325 Avenue of the Americas n/a - - 100 (1,550 ) 900 Third Avenue (2) n/a - - - - $ 6,850 $ 938 $ 4,241 $ 1,062 (1) We account for our interest in Oder-Center on a one quarter lag basis. (2) As of November 23, 2014, and December 31, 2013, our Predecessor’s investment in 900 Third Avenue had a deficit balance and since our Predecessor had no obligations to fund operating losses, it did not recognize any losses in excess of its investment balance. All unrecognized losses were aggregated to offset future net income until all unrecognized losses were utilized. See page 96 for details. |
712 Fifth Avenue [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Investments in Unconsolidated Joint Ventures | The following tables summarize 712 Fifth Avenue’s financial information as of the dates of and for the periods set forth below. (Amounts in thousands) As of Balance Sheets December 31, 2015 December 31, 2014 Rental property, net $ 214,139 $ 221,827 Other assets 42,255 46,126 Total assets $ 256,394 $ 267,953 Notes and mortgages payable $ 246,500 $ 246,500 Other liabilities 15,000 30,321 Total liabilities 261,500 276,821 Equity (1) (5,106 ) (8,868 ) Total liabilities and equity $ 256,394 $ 267,953 (1) The carrying amount of our investment in 712 Fifth Avenue is greater than our share of 712 Fifth Avenue’s equity by approximately $6,131. This basis difference resulted from distributions in excess of the equity in net earnings of 712 Fifth Avenue. The Company The Predecessor Period from Period from (Amounts in thousands) Year Ended November 24, January 1, 2014 Year Ended Income Statements December 31, 2015 to December 31, 2014 to November 23, 2014 December 31, 2013 Rental income $ 49,382 $ 5,118 $ 41,710 $ 41,166 Tenant reimbursement income 4,758 607 4,282 4,311 Fee and other income 1,235 232 1,274 1,785 Total revenue 55,375 5,957 47,266 47,262 Operating 22,956 2,586 20,826 22,306 Depreciation and amortization 11,764 1,209 10,127 10,009 General and administrative - 32 182 194 Total expenses 34,720 3,827 31,135 32,509 Operating income 20,655 2,130 16,131 14,753 Unrealized gain on interest rate swaps 4,223 1,285 5,249 10,031 Interest and debt expense (11,410 ) (1,538 ) (13,098 ) (14,517 ) Net income $ 13,468 $ 1,877 $ 8,282 $ 10,267 |
Oder-Center, Germany [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Investments in Unconsolidated Joint Ventures | The following tables summarize Oder-Center’s financial information as of the dates and for the periods set forth below. (Amounts in thousands) As of Balance Sheet September 30, 2015 Rental property, net $ 6,626 Other assets 1,228 Total assets $ 7,854 Notes and mortgages payable $ 24,143 Other liabilities 245 Total liabilities 24,388 Equity (16,534 ) Total liabilities and equity $ 7,854 (Amounts in thousands) Twelve Months Ended Income Statement September 30, 2015 Rental income $ 4,458 Fee and other income 60 Total revenue 4,518 Operating 625 Depreciation and amortization 401 Total expenses 1,026 Operating income 3,492 Interest and debt expense (1,186 ) Income tax expense (21 ) Net income $ 2,285 |
1325 Avenue of the Americas [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Investments in Unconsolidated Joint Ventures | The following tables summarize 1325 Avenue of the Americas’ financial information for as of the dates and for the periods set forth below. (Amounts in thousands) The Balance Sheet As of December 31, 2013 Rental property, net $ 209,455 Other assets 56,479 Total assets $ 265,934 Notes and mortgages payable $ 220,000 Other liabilities 5,450 Total liabilities 225,450 Equity 40,484 Total liabilities and equity $ 265,934 The Predecessor Period from (Amounts in thousands) January 1, 2014 Year Ended Income Statements to November 23, 2014 December 31, 2013 Rental income $ 33,693 $ 33,397 Tenant reimbursement income 4,629 5,186 Fee and other income 1,472 1,203 Total revenue 39,794 39,786 Operating 21,381 23,667 Depreciation and amortization 7,959 7,830 General and administrative 215 238 Total expenses 29,555 31,735 Operating income 10,239 8,051 Interest and debt expense (10,039 ) (11,150 ) Net income (loss) $ 200 $ (3,099 ) |
900 Third Avenue [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Investments in Unconsolidated Joint Ventures | The following table summarizes 900 Third Avenue’s financial information for as of the dates and for the periods set forth below. (Amounts in thousands) The Balance Sheet As of December 31, 2013 Rental property, net $ 135,886 Other assets 35,288 Total assets $ 171,174 Notes and mortgages payable $ 274,337 Other liabilities 30,797 Total liabilities 305,134 Equity (133,960 ) Total liabilities and equity $ 171,174 The Predecessor Period from (Amounts in thousands) January 1, 2014 Year Ended Income Statements to November 23, 2014 December 31, 2013 Rental income $ 32,269 $ 33,601 Tenant reimbursement income 3,001 3,036 Fee and other income 630 732 Total revenue 35,900 37,369 Operating 15,818 17,130 Depreciation and amortization 6,085 6,349 General and administrative 113 156 Total expenses 22,016 23,635 Operating income 13,884 13,734 Unrealized gain on interest rate swaps 5,759 9,985 Interest and debt expense (13,269 ) (14,872 ) Net income $ 6,374 $ 8,847 |
Intangible Assets and Liabili42
Intangible Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Intangible Assets and Liabilities | The following summarizes our identified assets (primarily acquired above-market leases and acquired in-place leases) and intangible liabilities (primarily acquired below-market leases) as of December 31, 2015 and December 31, 2014. As of (Amounts in thousands) December 31, 2015 December 31, 2014 Intangible assets: Gross amount $ 655,194 $ 689,894 Accumulated amortization (143,987 ) (20,509 ) $ 511,207 $ 669,385 Intangible liabilities: Gross amount $ 221,672 $ 222,985 Accumulated amortization (41,931 ) (3,757 ) $ 179,741 $ 219,228 |
Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases | Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2016 is as follows: (Amounts in thousands) 2016 $ 20,229 2017 6,738 2018 8,646 2019 7,965 2020 6,590 |
Leases, Acquired-in-Place [Member] | |
Schedule of Estimated Annual Amortization of Acquired In-Place Leases | Estimated annual amortization of acquired in-place leases for each of the five succeeding years commencing January 1, 2016 is as follows: (Amounts in thousands) 2016 $ 87,289 2017 55,417 2018 49,071 2019 44,458 2020 38,944 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following is a summary of our outstanding debt. Maturity Fixed/Variable Interest Rate at Balance at (Amounts in thousands) Date Rate December 31, 2015 December 31, 2015 December 31, 2014 Notes and mortgages payable 1633 Broadway Dec-2022 Fixed (1) 3.54 % $ 1,000,000 $ 772,100 Dec-2022 Variable 2.15 % 13,544 154,160 3.52 % 1,013,544 926,260 900 Third Avenue Nov-2017 Fixed (1) 5.98 % 162,000 255,000 Nov-2017 Variable 1.69 % 112,337 19,337 4.22 % 274,337 274,337 31 West 52nd Street Dec-2017 Fixed (1) 6.04 % 237,600 337,500 Dec-2017 Variable 1.79 % 175,890 75,990 4.23 % 413,490 413,490 One Market Plaza (49.0% interest) Dec-2019 Fixed (1) 6.14 % 857,037 853,711 Waterview June-2017 Fixed 5.76 % 210,000 210,000 1899 Pennsylvania Avenue Nov-2020 Fixed 4.88 % 89,116 90,489 Liberty Place June-2018 Fixed 4.50 % 84,000 84,000 Total Notes and mortgages payable 4.68 % $ 2,941,524 $ 2,852,287 $1.0 Billion Revolving Credit Facility ($200,000 reserved for outstanding letters of credit) Nov-2018 Variable 1.54 % $ 20,000 $ - (1) Represents loans with variable interest rates that have been fixed by interest rate swaps. (See Note 9, Derivative Instruments and Hedging Activities). |
Principal Repayments Required For Mortgages and Notes and Credit Facility | As of December 31, 2015, principal repayments required for the next five years and thereafter (Amounts in thousands) 2016 $ 1,441 2017 899,340 2018 105,588 2019 858,705 2020 82,906 Thereafter 1,013,544 |
Derivatives Instruments and H44
Derivatives Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Interest Rate Swaps | The table below provides additional details on our interest rate swaps that are not designated as hedges. Notional Strike Fair Value as of Property Amount Effective Date Maturity Date Rate December 31, 2015 December 31, 2014 (Amounts in thousands) One Market Plaza $ 840,000 Aug-2007 to Aug-2012 Aug-2017 5.02 % $ 55,404 $ 86,099 31 W 52nd Street 237,600 Dec-2007 Dec-2017 4.79 % 17,661 28,748 900 Third Avenue 162,000 Nov-2007 Nov-2017 4.78 % 11,630 19,158 1633 Broadway (1) - n/a n/a n/a - 60,191 Total interest rate swap liabilities related to non-designated hedges $ 84,695 $ 194,196 (1) Terminated in connection with the refinancing of 1633 Broadway. The table below provides additional details on our interest rate swaps that are designated as cash flow hedges. Notional Strike Fair Value as of Property Amount Effective Date Maturity Date Rate December 31, 2015 December 31, 2014 (Amounts in thousands) 1633 Broadway $ 1,000,000 Dec 2015 Dec 2020 to Dec-2022 1.79 % $ 9,204 $ - 1633 Broadway $ 400,000 Dec-2020 Dec-2021 2.35 % 37 - Total interest rate swap liabilities related to cash flow hedges $ 9,241 $ - |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive (Loss) Income ("AOCI") (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component | The following table sets forth the changes in accumulated other comprehensive (loss) income by component. (Amounts in thousands) Total Pro rata share of OCI of unconsolidated joint ventures Change in value of interest rate swaps For the Year Ended December 31, 2015 Balance as of December 31, 2014 $ - $ - $ - OCI before reclassifications (1) (7,843 ) (412 ) (7,431 ) Amounts reclassified from AOCI - - - Net current period OCI (7,843 ) (412 ) (7,431 ) Balance as of December 31, 2015 $ (7,843 ) $ (412 ) $ (7,431 ) (1) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Schedule of Fair Values of Financial Assets and Liabilities Measured at Fair Value | The table below aggregates the fair values of these financial assets and liabilities at December 31, 2015 and December 31, 2014, based on their levels in the fair value hierarchy. As of December 31, 2015 (Amounts in thousands) Total Level 1 Level 2 Level 3 Real estate fund investments: Investments in Property Funds $ 248,824 $ - $ - $ 248,824 Investments in Alternative Investment Funds 167,614 167,614 Total real estate fund investments 416,438 - - 416,438 Marketable securities 21,521 21,521 - - Total assets $ 437,959 $ 21,521 $ - $ 416,438 Interest rate swap liabilities $ 93,936 - 93,936 - Total liabilities $ 93,936 $ - $ 93,936 $ - As of December 31, 2014 (Amounts in thousands) Total Level 1 Level 2 Level 3 Real estate fund investments: Investments in Property Funds $ 183,216 $ - $ - $ 183,216 Investments in Alternative Investment Funds 140,171 140,171 Total real estate fund investments 323,387 - - 323,387 Marketable securities 20,159 20,159 - - Total assets $ 343,546 $ 20,159 $ - $ 323,387 Interest rate swap liabilities $ 194,196 - $ 194,196 - Total liabilities $ 194,196 $ - $ 194,196 $ - |
Summary of Changes in Fair Value of Real Estate Fund Investments in Level 3 | The table below summarizes the changes in the fair value of Real Estate Fund Investments that are classified as Level 3, for the years ended December 31, 2015 and 2014. Real Estate Fund Investments for the Year Ended December 31, (Amounts in thousands) 2015 2014 Beginning balance $ 323,387 $ 2,158,889 Purchases / Additions 170,218 258,677 Sales / Transfer of assets (98,368 ) (2,222,176 ) Net realized gains 7,455 32,954 Previously recorded unrealized gains on exited investments (6,584 ) - Net unrealized gains 20,330 95,043 Ending Balance $ 416,438 $ 323,387 |
Summary of Carrying Amounts and Fair Value of Financial Instruments | The following is a summary of the carrying amounts and fair value of these financial instruments as of December 31, 2015 and 2014. As of December 31, 2015 As of December 31, 2014 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Cash equivalents $ 118,561 $ 118,561 $ 401,215 $ 401,215 Total Assets $ 118,561 $ 118,561 $ 401,215 $ 401,215 As of December 31, 2015 As of December 31, 2014 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Notes and mortgages payable $ 2,941,524 $ 2,907,242 $ 2,852,287 $ 2,796,842 Revolving credit facility 20,000 20,723 - - Total Liabilities $ 2,961,524 $ 2,927,965 $ 2,852,287 $ 2,796,842 |
Property Funds [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Summary of Significant Unobservable Quantitative Inputs Utilized in Determining Fair Value of Investments | Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of the Property Fund investments at December 31, 2015 and 2014. As of December 31, 2015 As of December 31, 2014 Unobservable Quantitative Input Range Weighted average (based on fair value of investments) Range Weighted average (based on fair value of investments) Discount rates 7.00% - 7.50% 7.18% 6.50%-7.25% 6.83% Terminal capitalization rates 5.00% - 6.00% 5.47% 5.50% - 6.00% 5.72% |
Alternative Investment Funds [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Summary of Significant Unobservable Quantitative Inputs Utilized in Determining Fair Value of Investments | Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of the investments in the Alternative Investment Funds at December 31, 2015 and 2014. As of December 31, 2015 As of December 31, 2014 Unobservable Quantitative Input Range Weighted average (based on fair value of investments) Range Weighted average (based on fair value of investments) Preferred return 7.32% - 14.02% 9.51% 8.50% - 14.00% 11.07% Credit spread 2.34% 2.34% n/a n/a |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of Future Minimum Rents Under Non-Cancelable Operating Leases | The following is a schedule of future minimum rents under non-cancelable operating leases as of December 31, 2015. (Amounts in thousands) 2016 $ 486,384 2017 515,160 2018 515,559 2019 502,487 2020 479,075 Thereafter 3,112,430 Total $ 5,611,095 |
Fee and Other Income (Tables)
Fee and Other Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fee And Other Income [Abstract] | |
Schedule of Fee and Other Income | The following table sets forth the details of our fee and other income. The Company The Predecessor Period from Period from Year Ended November 24, 2014 January 1, 2014 Year Ended (Amounts in thousands) December 31, 2015 to December 31, 2014 to November 23, 2014 December 31, 2013 Fee income Property management fees $ 5,763 $ 587 $ 15,599 $ 15,641 Acquisition and disposition fees 1,985 510 25,038 2,785 Construction fees 216 58 5,718 6,937 Other fees 2,284 21 2,743 1,063 Total fee income (1) 10,248 1,176 49,098 26,426 Other income (2) 14,745 1,629 - - Total fee and other income $ 24,993 $ 2,805 $ 49,098 $ 26,426 (1) Includes $2,308 and $222 of fee income for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014, pursuant to management agreements with our joint venture partner at 712 Fifth Avenue. (2) Other income is primarily comprised of (i) tenant payments for items such as after hour heating and cooling, freight elevator services and similar expenses and (ii) lease termination income. |
Interest and Other Income (Lo49
Interest and Other Income (Loss), net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Interest And Other Income [Abstract] | |
Schedule Of Interest And Other Income (Loss), net | The following table sets forth the details of interest and other income (loss), net. The Company The Predecessor Period from Period from Year Ended November 24, 2014 January 1, Year Ended (Amounts in thousands) December 31, 2015 to to December 31, 2013 Mark-to-market of investments in our deferred compensation plans (1) $ 197 $ (321 ) $ 1,706 $ 5,532 Interest and other income 674 142 773 3,875 Total interest and other income (loss) $ 871 $ (179 ) $ 2,479 $ 9,407 (1) |
Interest and Debt Expense (Tabl
Interest and Debt Expense (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Interest And Debt Expense [Abstract] | |
Details of Interest and Debt Expense | The following table sets forth the details of interest and debt expense: The Company The Predecessor Period from Period from Year Ended November January 1, 2014 Year Ended (Amounts in thousands) December 31, 2015 to December 31, 2014 to November 23, 2014 December 31, 2013 Interest and debt expense $ 165,801 $ 43,503 (1) $ 28,196 $ 29,373 Amortization of deferred financing costs 2,565 240 389 434 Total interest and debt expense $ 168,366 $ 43,743 $ 28,585 $ 29,807 (1) |
Formation Related Costs (Tables
Formation Related Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Formation Related Costs | The following table sets forth the details of formation related costs in connection with our initial public offering. The Company Period from Year Ended November 24, 2014 (Amounts in thousands) December 31, 2015 to December 31, 2014 Founders Grants $ - $ 71,000 Transfer taxes - 51,306 Accounting, legal and other professional fees - 21,131 Total formation related costs $ - $ 143,437 |
Incentive Compensation (Tables)
Incentive Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Weighted-average assumptions for grants using Option-pricing model | The fair value of the option is estimated on the date of grant using an option-pricing model with the following weighted-average assumptions for grants for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014. December 31, 2015 December 31, 2014 Expected volatility 27.0% 23.0% Expected life 6.5 years 6.5 years Risk free interest rate 1.8% 2.1% Expected dividend yield 2.0% 2.3% |
LTIP Units | |
Summary of LTIP Unit and Restricted Stock Activity | Below is a summary of LTIP unit activity under the Plan for the year ended December 31, 2015 Units Weighted-Average Grant-Date Value Unvested at December 31, 2014 885,713 $ 16.60 Granted 116,095 17.93 Vested (286,849 ) 16.54 Cancelled or expired - - Unvested at December 31, 2015 714,959 $ 16.84 |
Employee Stock Option | |
Summary of Stock Option Activity | Below is a summary of our stock option activity for year ended December 31, 2015. Shares Weighted-Average Exercise Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2014 1,489,500 $ 17.50 Granted 200,000 19.08 Exercised (200 ) 17.50 Cancelled or expired (64,850 ) 17.50 Outstanding at December 31, 2015 1,624,450 $ 17.69 8.9 $ 854,670 Options vested and expected to vest at December 31, 2015 1,524,250 $ 17.69 8.9 $ 803,000 Options exercisable at December 31, 2015 368,250 $ 17.50 8.9 $ 221,000 |
Restricted Stock | |
Summary of LTIP Unit and Restricted Stock Activity | Below is a summary of restricted stock activity under the Plan for the year ended December 31, 2015. Units Weighted-Average Grant-Date Value Unvested at December 31, 2014 5,714 $ 17.50 Granted 5,219 19.16 Vested (5,714 ) 17.50 Cancelled or expired - - Unvested at December 31, 2015 5,219 $ 19.16 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities [Abstract] | |
Summary of Assets and Liabilities of Variable Interest Entities | The liabilities are secured by only the assets of the entities, and are non-recourse to us. Balance as of (Amounts in thousands) December 31, 2015 December 31, 2014 Investments, at fair value $ 8,025 $ 17,136 Investments, at cost 63,511 63,550 Cash and restricted cash 497 4,976 Total VIE assets $ 72,033 $ 85,662 Loans payable to noncontrolling interests $ 45,662 $ 42,195 Other liabilities 195 131 Total VIE liabilities $ 45,857 $ 42,326 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Reconciliation Net Income Attributable to Estimated Taxable Income (Loss) | The following table reconciles net income attributable to Paramount Group, Inc. to estimated taxable income for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014. Period from Year Ended November 24, 2014 (Amounts in thousands) December 31, 2015 to December 31, 2014 Net (loss) income attributable to Paramount Group, Inc. $ (4,419 ) $ 57,308 Book to tax differences: Straight-line and prepaid rents (36,131 ) 6,927 Depreciation and amortization 104,399 11,691 Stock based compensation 5,794 57,740 Gain on consolidation of unconsolidated joint venture - (192,891 ) Swap breakage costs (27,147 ) (11,316 ) Unrealized gain on interest rate swaps (29,586 ) (6,832 ) Earnings of unconsolidated joint ventures, including real estate investments (12,909 ) (5,347 ) Other, net 7,356 20,832 Estimated taxable income (loss) (unaudited) $ 7,357 $ (61,888 ) |
Summary of Components of Deferred Tax Liabilities | Below is a summary of the components of deferred tax liabilities. (Amounts in thousands) Year Ended December 31, 2013 Investment in partnerships/real estate $ 175,438 Basis adjustments 31,981 Deferred compensation (9,886 ) Net operating losses & carryovers (9,158 ) Valuation allowance 1,710 Other, net (491 ) Total deferred tax liabilities $ 189,594 |
Schedule of Income Tax Position | The following table summarizes our Predecessor’s tax position. Period from January 1, 2014 Year Ended (Amounts in thousands) to November 23, December 31, 2013 Income before income taxes $ 127,859 $ 313,868 Total provision for income taxes 18,461 11,029 Effective income tax rate 14.4 % 3.5 % |
Summary of Tax Rate Reconciliation | The following table reconciles our Predecessor’s provision for income taxes to the U.S. federal statutory tax rate. Period from January 1, 2014 Year Ended to November 23, December 31, 2013 Statutory U.S. federal income tax rate 35.0% 35.0% Income passed through to common unitholders and noncontrolling interests (1) (24.1%) (31.6%) State and local income taxes 5.5% 0.8% Other (2.0%) (0.7%) Effective income tax rate (2) 14.4% 3.5% (1) (2) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Earnings Per Share | The following table provides a reconciliation of net (loss) income and the number of common shares used in the computation of basic income (loss) per common share - which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares, and diluted income per common share - which includes the weighted average common shares and dilutive share equivalents. Dilutive share equivalents may include our employee stock options and restricted stock. Period from Year Ended November 24, 2014 (Amounts in thousands, except per share amounts) December 31, 2015 to December 31, 2014 Numerator: Net (loss) income attributable to common stockholders - basic and diluted $ (4,419 ) $ 57,308 Denominator: Denominator for basic (loss) income per share - weighted average shares 212,107 212,107 Effect of dilutive employee stock options and restricted share awards (1) - 1 Denominator for diluted (loss) income per share - weighted average shares 212,107 212,108 (Loss) income per share - basic and diluted $ (0.02 ) $ 0.27 (1) The effect of dilutive securities for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014 excludes an aggregate of 53,281 and 53,043 weighted average share equivalents, respectively, as their effect was anti-dilutive. |
Summary of Quarterly Results 56
Summary of Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | The quarterly results of operations of our company and our Predecessor for the years ended December 31, 2015 and 2014 are as follows: Net (Loss) Income Net Income (Loss) attributable to attributable to Net Income (Loss) Per Common Share (Amounts in thousands, except per share amounts) Revenues the Predecessor the Company Basic Diluted The Company: December 31, 2015 $ 170,528 $ - $ 8,905 $ 0.04 $ 0.04 September 31, 2015 167,726 - 1,116 0.01 0.01 June 30, 2015 162,928 - (4,709 ) (0.02 ) (0.02 ) March 31, 2015 161,226 - (9,731 ) (0.05 ) (0.05 ) November 24, 2014 to December 31, 2014 $ 66,135 $ - $ 57,308 $ 0.27 $ 0.27 The Predecessor: October 1, 2014 to November 23, 2014 $ 36,043 $ (968 ) September 30, 2014 71,392 12,904 June 30, 2014 58,328 5,178 March 31, 2014 61,626 4,396 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Each Reportable Segment Information | The following tables provide selected results for each reportable segment for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014. Year Ended December 31, 2015 Owned (Amounts in thousands) Properties Other Total Income Statement Data: Revenues Rental income $ 583,825 $ 2,705 $ 586,530 Tenant reimbursement income 50,885 - 50,885 Fee and other income 14,737 10,256 24,993 Total revenues 649,447 12,961 662,408 Total expenses 541,774 50,015 591,789 Operating income (loss) 107,673 (37,054 ) 70,619 Income from real estate fund investments - 37,975 37,975 Income from unconsolidated joint ventures 6,734 116 6,850 Unrealized gain on interest rate swaps 75,760 - 75,760 Interest and other income, net 367 504 871 Interest and debt expense (160,058 ) (8,308 ) (168,366 ) Net income (loss) before income taxes 30,476 (6,767 ) 23,709 Income tax (expense) benefit 310 (2,876 ) (2,566 ) Net income (loss) 30,786 (9,643 ) 21,143 Add: Depreciation and amortization 293,433 1,191 294,624 General and administrative - 42,056 42,056 Interest and debt expense 160,058 8,308 168,366 Transfer taxes due in connection with the sale of shares by a former joint venture partner - 5,872 5,872 Acquisition and transaction costs - 4,483 4,483 Income tax expense (benefit) (310 ) 2,876 2,566 Net Operating Income from unconsolidated joint ventures 16,210 370 16,580 Less: Income from real estate fund investments - (37,975 ) (37,975 ) Income from unconsolidated joint ventures (6,734 ) (116 ) (6,850 ) Fee income - (10,248 ) (10,248 ) Unrealized gain on interest rate swaps (75,760 ) - (75,760 ) Interest and other income, net (367 ) (504 ) (871 ) Net Operating Income (1) $ 417,316 $ 6,670 $ 423,986 Balance Sheet data: Total assets $ 8,172,529 $ 621,614 $ 8,794,143 Total liabilities 3,309,104 174,489 3,483,593 Total equity $ 4,863,425 $ 447,125 $ 5,310,550 Period from November 24, 2014 to December 31, 2014 Owned (Amounts in thousands) Properties Other Total Income Statement data: Revenues Rental income $ 57,169 $ 296 $ 57,465 Tenant reimbursement income 5,865 - 5,865 Fee and other income 1,629 1,176 2,805 Total revenues 64,663 1,472 66,135 Total expenses 61,091 1,608 62,699 Operating income 3,572 (136 ) 3,436 Income from real estate fund investments - 1,412 1,412 Income from unconsolidated joint ventures 938 - 938 Unrealized gain on interest rate swaps 15,084 - 15,084 Interest and other income (loss), net 30 (209 ) (179 ) Interest and debt expense (41,633 ) (2,110 ) (43,743 ) Formation related costs - (143,437 ) (143,437 ) Gain on consolidation of unconsolidated joint ventures - 239,716 239,716 Net income (loss) before income taxes (22,009 ) 95,236 73,227 Income tax expense (475 ) (30 ) (505 ) Net income (loss) (22,484 ) 95,206 72,722 Add: Depreciation and amortization expense 34,378 103 34,481 General and administrative expenses 91 2,116 2,207 Interest and debt expense 41,633 2,110 43,743 Formation related costs - 143,437 143,437 Income tax expense 475 30 505 NOI from unconsolidated joint ventures 1,680 - 1,680 Less: Income from unconsolidated joint ventures (938 ) - (938 ) Fee income - (1,176 ) (1,176 ) Unrealized gain on interest rate swaps (15,084 ) - (15,084 ) Interest and other (income) loss, net (30 ) 209 179 Gain on consolidation of unconsolidated joint ventures - (239,716 ) (239,716 ) Net Operating Income (1) $ 39,721 $ 2,319 $ 42,040 Balance Sheet data: Total assets $ 8,345,966 $ 684,475 $ 9,030,441 Total liabilities 3,350,798 124,690 3,475,488 Total equity $ 4,995,168 $ 559,785 $ 5,554,953 (1) |
Predecessor [Member] | |
Schedule of Each Reportable Segment Information | The following tables provide selected results for each reportable segment for the period from January 1, 2014 to November 23, 2014 and the year ended December 31, 2013. Period from January 1, 2014 to November 23, 2014 Owned Managed Management (Amounts in thousands) Properties Funds Company Eliminations Total Income Statement data: Revenues Rental income $ 27,774 $ 2,434 $ - $ - $ 30,208 Tenant reimbursement income 1,646 - - - 1,646 Distributions from real estate fund investments - 17,083 - - 17,083 Realized and unrealized gains, net - 129,354 - - 129,354 Fee and other income - - 74,686 (25,588 ) 49,098 Total revenues 29,420 148,871 74,686 (25,588 ) 227,389 Total expenses 20,553 27,995 54,032 (25,588 ) 76,992 Operating income 8,867 120,876 20,654 - 150,397 Income from unconsolidated joint ventures 4,241 - 48,683 (48,683 ) 4,241 Unrealized loss on interest rate swaps - (673 ) - - (673 ) Interest and other income, net 2,004 388 87 - 2,479 Interest and debt expense (11,157 ) (17,323 ) (105 ) - (28,585 ) Net income before income taxes 3,955 103,268 69,319 (48,683 ) 127,859 Income tax expense - - (18,461 ) - (18,461 ) Net income 3,955 103,268 50,858 (48,683 ) 109,398 Net income attributable to noncontrolling interests - (87,888 ) - - (87,888 ) Net income attributable to the Predecessor $ 3,955 $ 15,380 $ 50,858 $ (48,683 ) $ 21,510 Year Ended December 31, 2013 Owned Managed Management (Amounts in thousands) Properties Funds Company Eliminations Total Income Statement data: Revenues Rental income $ 30,406 $ - $ - $ - $ 30,406 Tenant reimbursement income 1,821 - - - 1,821 Distributions from real estate fund investments - 29,184 - - 29,184 Realized and unrealized gains, net - 332,053 - - 332,053 Fee and other income - - 54,298 (27,872 ) 26,426 Total revenues 32,227 361,237 54,298 (27,872 ) 419,890 Total expenses 26,369 29,417 60,385 (27,872 ) 88,299 Operating income (loss) 5,858 331,820 (6,087 ) - 331,591 Income from unconsolidated joint ventures 1,062 - 74,695 (74,695 ) 1,062 Unrealized gain on interest rate swaps - 1,615 - - 1,615 Interest and other income, net 5,891 1,152 2,364 - 9,407 Interest and debt expense (12,443 ) (17,219 ) (145 ) - (29,807 ) Net income before income taxes 368 317,368 70,827 (74,695 ) 313,868 Income tax expense - - (11,029 ) - (11,029 ) Net income 368 317,368 59,798 (74,695 ) 302,839 Net income attributable to noncontrolling interests - (286,325 ) - - (286,325 ) Net income attributable to the Predecessor $ 368 $ 31,043 $ 59,798 $ (74,695 ) $ 16,514 Balance Sheet data: Total assets $ 552,474 $ 2,329,153 $ 373,173 $ (332,109 ) $ 2,922,691 Total liabilities 350,884 508,481 96,596 (58,714 ) 897,247 Total equity $ 201,590 $ 1,820,672 $ 276,577 $ (273,395 ) $ 2,025,444 |
Organization and Business - Add
Organization and Business - Additional Information (Details) ft² in Millions | Nov. 25, 2014shares | Dec. 31, 2015ft²Properties | Nov. 24, 2014$ / shares | Nov. 23, 2014PropertiesFund |
Real Estate Properties [Line Items] | ||||
Number of office properties | Properties | 12 | |||
Area of office properties | ft² | 10.4 | |||
Percentage of ownership in operating partnership | 80.40% | |||
Predecessor [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of office properties | Properties | 12 | |||
Number of real estate funds | Fund | 15 | |||
Predecessor [Member] | Primary Funds [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate funds | Fund | 9 | |||
Predecessor [Member] | Parallel Funds [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate funds | Fund | 6 | |||
Predecessor [Member] | Partially Owned Properties [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of office properties | Properties | 3 | |||
IPO [Member] | ||||
Real Estate Properties [Line Items] | ||||
Common shares issued, initial public offering, shares | shares | 150,650,000 | |||
Common stock, share price | $ / shares | $ 17.50 |
Basis of Presentation and Sig59
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - Segment | 11 Months Ended | 12 Months Ended |
Nov. 23, 2014 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | ||
Minimum percentage of taxable income distributed to shareholders | 90.00% | |
Number of reportable segments | 1 | |
Following the Formation Transactions | ||
Property Plant And Equipment [Line Items] | ||
Number of reportable segments | 1 | |
Predecessor [Member] | ||
Property Plant And Equipment [Line Items] | ||
Number of reportable segments | 3 | |
Minimum | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives of the assets | P5Y | |
Maximum | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives of the assets | P40Y | |
One Market Plaza [Member] | ||
Property Plant And Equipment [Line Items] | ||
Residual ownership interest | 2.00% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - 31 West 52nd Street [Member] $ in Thousands | Oct. 02, 2015USD ($) |
Business Acquisition [Line Items] | |
Business acquisition of remaining ownership interest percentage | 35.80% |
Business acquisition, consideration cash | $ 230,000 |
Business acquisition, consideration debt | $ 148,000 |
Real Estate Fund Investments -
Real Estate Fund Investments - Summary of Fair Value of Fund Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Real Estate Fund Disclosure [Abstract] | ||
Property Funds | $ 248,824 | $ 183,216 |
Alternative Investment Funds | 167,614 | 140,171 |
Total | $ 416,438 | $ 323,387 |
Real Estate Fund Investments 62
Real Estate Fund Investments - Schedule of Income from Fund Investment (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Investment Holdings [Line Items] | ||
Income from real estate fund investments | $ 1,412 | $ 37,975 |
Investment Income [Member] | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | 3,334 | 13,406 |
Investment Expenses [Member] | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | 565 | 1,132 |
Net Investment Income [Member] | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | 2,769 | 12,274 |
Net Realized Gains | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | 50 | 11,955 |
Previously recorded unrealized gains on exited investments | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | (6,584) | |
Net Unrealized Gains (Losses) [Member] | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | $ (1,407) | $ 20,330 |
Real Estate Fund Investments 63
Real Estate Fund Investments - Additional Information (Details) | Oct. 29, 2015USD ($)ft² | Dec. 31, 2015USD ($)ft² |
Investment Holdings [Line Items] | ||
Area of office properties | ft² | 10,400,000 | |
Aggregate committed capital | $ 580,200,000 | |
Committed capital invested | $ 166,560,000 | |
Fund VII and VII-H [Member] | 670 Broadway [Member] | ||
Investment Holdings [Line Items] | ||
Area of office properties | ft² | 75,945 | |
Business acquisition, consideration amount | $ 112,000,000 | |
Business acquisition, consideration cash | 42,000,000 | |
Mortgage Debt [Member] | Fund VII and VII-H [Member] | 670 Broadway [Member] | ||
Investment Holdings [Line Items] | ||
Business acquisition, consideration debt | $ 70,000,000 |
Real Estate Fund Investments 64
Real Estate Fund Investments - Summary of Property Funds Ownership Interests in These Funds and Funds Ownership Interest in Underlying Properties (Details) | Dec. 31, 2015 |
60 Wall Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 100.00% |
One Market Plaza [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 100.00% |
50 Beale Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 100.00% |
670 Broadway [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 100.00% |
Fund II [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 10.00% |
Fund II [Member] | 60 Wall Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 46.30% |
Fund III [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 3.10% |
Fund III [Member] | 60 Wall Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 16.00% |
Fund III [Member] | One Market Plaza [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 2.00% |
Fund VII and VII-H [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 7.20% |
Fund VII and VII-H [Member] | 50 Beale Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 42.80% |
Fund VII and VII-H [Member] | 670 Broadway [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 100.00% |
Property Funds [Member] | 60 Wall Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 62.30% |
Property Funds [Member] | One Market Plaza [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 2.00% |
Property Funds [Member] | 50 Beale Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 42.80% |
Property Funds [Member] | 670 Broadway [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 100.00% |
Other Investors [Member] | 60 Wall Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 37.70% |
Other Investors [Member] | One Market Plaza [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 98.00% |
Other Investors [Member] | 50 Beale Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 57.20% |
Real Estate Fund Investments 65
Real Estate Fund Investments - Summary of Property Funds Ownership Interests in These Funds and Funds Ownership Interest in Underlying Properties (Parenthetical) (Details) - One Market Plaza [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Investment Holdings [Line Items] | |
Ownership interest rate of property | 49.00% |
Other Investors [Member] | |
Investment Holdings [Line Items] | |
Ownership interest rate of property | 49.00% |
Real Estate Fund Investments 66
Real Estate Fund Investments - Summary of Ownership Interests in Alternative Investment Funds and Funds Underlying Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investment Holdings [Line Items] | ||
Mezzanine Loans, Interest Rate | 4.68% | |
Mezzanine loans | $ 167,614 | $ 45,947 |
Preferred Equity Investments | 94,224 | |
Investment , total | $ 167,614 | 140,171 |
Mortgage Loan | 700 Eighth Avenue [Member] | ||
Investment Holdings [Line Items] | ||
Mezzanine Loans, Ownership | 1.70% | |
Mezzanine Loans, Interest Rate | 6.40% | |
Mezzanine Loans, Initial Maturity | Dec. 31, 2016 | |
Mezzanine loans | $ 80,317 | |
Property Fund VIII | 26 Broadway [Member] | ||
Investment Holdings [Line Items] | ||
Mezzanine Loans, Ownership | 1.70% | |
Mezzanine Loans, Interest Rate | 8.30% | |
Mezzanine Loans, Initial Maturity | Jan. 31, 2022 | |
Mezzanine loans | $ 46,678 | 45,947 |
Property Fund VIII | 1440 Broadway [Member] | ||
Investment Holdings [Line Items] | ||
Mezzanine Loans, Ownership | 1.70% | |
Mezzanine Loans, Interest Rate | 6.40% | |
Mezzanine Loans, Initial Maturity | Oct. 31, 2019 | |
Mezzanine loans | $ 40,619 | |
PGRESS Funds | ||
Investment Holdings [Line Items] | ||
Preferred Equity Investments | 94,224 | |
PGRESS Funds | 470 Vanderbilt Avenue [Member] | ||
Investment Holdings [Line Items] | ||
Preferred Equity Investments | 35,039 | |
PGRESS Funds | 2 Herald Square [Member] | ||
Investment Holdings [Line Items] | ||
Preferred Equity Investments | 18,107 | |
PGRESS Funds | One Court Square [Member] | ||
Investment Holdings [Line Items] | ||
Preferred Equity Investments | $ 41,078 |
Real Estate Fund Investments 67
Real Estate Fund Investments - Summary of Ownership Interests in Alternative Investment Funds and Funds Underlying Investments (Parenthetical) (Details) $ in Thousands | Nov. 24, 2015USD ($)ft² | Sep. 30, 2015USD ($)ft² | Sep. 01, 2015USD ($) | Dec. 31, 2015USD ($)ft² |
Investment Holdings [Line Items] | ||||
Area of office properties | ft² | 10,400,000 | |||
PGRESS and PGRESS-H | ||||
Investment Holdings [Line Items] | ||||
Redemption of preferred equity investment | $ | $ 42,475 | |||
Realized gain on investment | $ | $ 7,455 | |||
PGRESS Funds | Four Seven Zero Vanderbilt Avenue | ||||
Investment Holdings [Line Items] | ||||
Area of office properties | ft² | 650,000 | |||
PGRESS Funds | 2 Herald Square [Member] | ||||
Investment Holdings [Line Items] | ||||
Area of office properties | ft² | 369,000 | |||
Mezzanine Secured Loan | 26 Broadway [Member] | ||||
Investment Holdings [Line Items] | ||||
Area of office properties | ft² | 836,000 | |||
Subordinate loan | $ | $ 220,000 | |||
Subordinate to other debt | The loan has a fixed interest rate and is subordinate to $220,000 of other debt. | |||
Mezzanine Secured Loan | 1440 Broadway [Member] | ||||
Investment Holdings [Line Items] | ||||
Area of office properties | ft² | 751,546 | |||
Subordinate loan | $ | $ 265,000 | |||
Subordinate to other debt | The loan bears interest at LIBOR plus 600 bps, and has a one-year extension option and is subordinate to $265,000 of other debt. | |||
Loan extension term | 1 year | |||
Mezzanine loan | $ | $ 40,000 | |||
Mezzanine Secured Loan | 700 Eighth Avenue [Member] | ||||
Investment Holdings [Line Items] | ||||
Area of office properties | ft² | 26,126 | |||
Loan extension term | 1 year | |||
Mortgage and Mezzanine Loan | $ | $ 80,000 | |||
Mezzanine Secured Loan | London Interbank Offered Rate L I B O R | 1440 Broadway [Member] | ||||
Investment Holdings [Line Items] | ||||
Basis spread on variable rate | 6.00% | |||
Mezzanine Secured Loan | London Interbank Offered Rate L I B O R | 700 Eighth Avenue [Member] | ||||
Investment Holdings [Line Items] | ||||
Basis spread on variable rate | 6.00% |
Real Estate Fund Investments 68
Real Estate Fund Investments - Schedule of Realized and Unrealized Gains from Real Estate Fund Investment (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Investment Holdings [Line Items] | ||||
Realized and unrealized gain (loss), net | $ (1,357) | $ 21,201 | ||
Predecessor [Member] | ||||
Investment Holdings [Line Items] | ||||
Realized and unrealized gain (loss), net | $ 129,354 | $ 332,053 | ||
Net Realized Gains (Losses) on Real Estate Fund Investments [Member] | Predecessor [Member] | ||||
Investment Holdings [Line Items] | ||||
Realized and unrealized gain (loss), net | 43,309 | (694) | ||
Previously recorded unrealized (gains) losses on exited investments | Predecessor [Member] | ||||
Investment Holdings [Line Items] | ||||
Realized and unrealized gain (loss), net | (10,405) | 10,571 | ||
Net Unrealized Gain On Real Estate Fund Investments [Member] | Predecessor [Member] | ||||
Investment Holdings [Line Items] | ||||
Realized and unrealized gain (loss), net | $ 96,450 | $ 322,176 |
Real Estate Fund Investments 69
Real Estate Fund Investments - Schedule of Asset Management Fees (Details) - Predecessor [Member] - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Nov. 23, 2014 | Dec. 31, 2013 | |
Investment Holdings [Line Items] | ||
Gross asset management fees | $ 23,701 | $ 26,180 |
Eliminated fees | (1,078) | (1,118) |
Net asset management fees | $ 22,623 | $ 25,062 |
Real Estate Fund Investments 70
Real Estate Fund Investments - Schedule of Amounts Recognized in Income Statement (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Nov. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Real Estate Properties [Line Items] | ||||||||
Rental income | $ 57,465 | $ 586,530 | ||||||
Tenant reimbursement income | 5,865 | 50,885 | ||||||
Fee and other income | 2,805 | 24,993 | ||||||
Total revenues | 66,135 | $ 170,528 | $ 167,726 | $ 162,928 | $ 161,226 | 662,408 | ||
Operating | 26,011 | 244,754 | ||||||
Depreciation and amortization | 34,481 | 294,624 | ||||||
General and administrative | 2,207 | 42,056 | ||||||
Total expenses | 62,699 | 591,789 | ||||||
Operating income (loss) | 3,436 | 70,619 | ||||||
Unrealized gain on interest rate swaps | 15,084 | 75,760 | ||||||
Interest and debt expense | (43,743) | (168,366) | ||||||
Net income before income taxes | 73,227 | 23,709 | ||||||
Income tax expense | (505) | (2,566) | ||||||
Net income | $ 72,722 | $ 21,143 | ||||||
1633 Broadway [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental income | $ 136,422 | $ 130,590 | ||||||
Tenant reimbursement income | 12,742 | 13,538 | ||||||
Fee and other income | 2,951 | 2,994 | ||||||
Total revenues | 152,115 | 147,122 | ||||||
Building operating | 50,830 | 54,867 | ||||||
Related party management fees | 2,864 | 2,870 | ||||||
Operating | 53,694 | 57,737 | ||||||
Depreciation and amortization | 10,990 | 11,187 | ||||||
General and administrative | 118 | 251 | ||||||
Total expenses | 64,802 | 69,175 | ||||||
Operating income (loss) | 87,313 | 77,947 | ||||||
Unrealized gain on interest rate swaps | 25,226 | 34,711 | ||||||
Interest and debt expense | (46,315) | (52,563) | ||||||
Net income before income taxes | 66,224 | 60,095 | ||||||
Net income | 66,224 | 60,095 | ||||||
900 Third Avenue [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental income | 31,219 | 33,601 | ||||||
Tenant reimbursement income | 3,001 | 3,036 | ||||||
Fee and other income | 1,680 | 732 | ||||||
Total revenues | 35,900 | 37,369 | ||||||
Building operating | 14,904 | 16,150 | ||||||
Related party management fees | 914 | 980 | ||||||
Operating | 15,818 | 17,130 | ||||||
Depreciation and amortization | 6,085 | 6,349 | ||||||
General and administrative | 113 | 156 | ||||||
Total expenses | 22,016 | 23,635 | ||||||
Operating income (loss) | 13,884 | 13,734 | ||||||
Unrealized gain on interest rate swaps | 5,759 | 9,985 | ||||||
Interest and debt expense | (13,269) | (14,872) | ||||||
Net income before income taxes | 6,374 | 8,847 | ||||||
Net income | 6,374 | 8,847 | ||||||
31 West 52nd Street [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental income | 67,453 | 77,257 | ||||||
Tenant reimbursement income | 5,126 | 5,100 | ||||||
Fee and other income | 3,360 | 1,154 | ||||||
Total revenues | 75,939 | 83,511 | ||||||
Building operating | 21,516 | 22,905 | ||||||
Related party management fees | 1,244 | 1,295 | ||||||
Operating | 22,760 | 24,200 | ||||||
Depreciation and amortization | 23,438 | 22,688 | ||||||
General and administrative | 119 | 130 | ||||||
Total expenses | 46,317 | 47,018 | ||||||
Operating income (loss) | 29,622 | 36,493 | ||||||
Unrealized gain on interest rate swaps | 8,466 | 15,993 | ||||||
Interest and debt expense | (20,092) | (22,307) | ||||||
Net income before income taxes | 17,996 | 30,179 | ||||||
Net income | 17,996 | 30,179 | ||||||
1301 Avenue of the Americas [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental income | 104,220 | 97,576 | ||||||
Tenant reimbursement income | 8,252 | 9,693 | ||||||
Fee and other income | 9,667 | 2,598 | ||||||
Total revenues | 122,139 | 109,867 | ||||||
Building operating | 46,679 | 51,247 | ||||||
Related party management fees | 1,580 | 1,646 | ||||||
Operating | 48,259 | 52,893 | ||||||
Depreciation and amortization | 37,212 | 37,075 | ||||||
General and administrative | 167 | 215 | ||||||
Total expenses | 85,638 | 90,183 | ||||||
Operating income (loss) | 36,501 | 19,684 | ||||||
Unrealized gain on interest rate swaps | 12,042 | 21,275 | ||||||
Interest and debt expense | (54,436) | (68,540) | ||||||
Net income before income taxes | (5,893) | (27,581) | ||||||
Net income | (5,893) | (27,581) | ||||||
One Market Plaza [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental income | 65,314 | 77,265 | ||||||
Tenant reimbursement income | 1,191 | 1,707 | ||||||
Fee and other income | 3,242 | 7,778 | ||||||
Total revenues | 69,747 | 86,750 | ||||||
Building operating | 25,119 | 29,985 | ||||||
Related party management fees | 701 | 832 | ||||||
Operating | 25,820 | 30,817 | ||||||
Depreciation and amortization | 31,422 | 37,847 | ||||||
General and administrative | 4,545 | 236 | ||||||
Total expenses | 61,787 | 68,900 | ||||||
Operating income (loss) | 7,960 | 17,850 | ||||||
Unrealized gain on interest rate swaps | 20,848 | 36,378 | ||||||
Interest and debt expense | (48,486) | (55,170) | ||||||
Net income before income taxes | (19,678) | (942) | ||||||
Net income | (19,678) | (942) | ||||||
Liberty Place [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental income | 5,823 | 8,421 | ||||||
Tenant reimbursement income | 1,884 | 2,528 | ||||||
Fee and other income | 50 | 82 | ||||||
Total revenues | 7,757 | 11,031 | ||||||
Building operating | 3,911 | 4,286 | ||||||
Related party management fees | 214 | 275 | ||||||
Operating | 4,125 | 4,561 | ||||||
General and administrative | 66 | 63 | ||||||
Total expenses | 4,191 | 4,624 | ||||||
Operating income (loss) | 3,566 | 6,407 | ||||||
Interest and debt expense | (3,488) | (3,887) | ||||||
Unrealized (depreciation) appreciation on investment in real estate | (2,772) | (2,066) | ||||||
Net income before income taxes | (2,694) | 454 | ||||||
Income tax expense | (105) | (45) | ||||||
Net income | (2,799) | 409 | ||||||
1899 Pennsylvania Avenue [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental income | 7,249 | 9,686 | ||||||
Tenant reimbursement income | 3,648 | 4,807 | ||||||
Fee and other income | 115 | 153 | ||||||
Total revenues | 11,012 | 14,646 | ||||||
Building operating | 4,674 | 5,066 | ||||||
Related party management fees | 254 | 330 | ||||||
Operating | 4,928 | 5,396 | ||||||
Depreciation and amortization | 3,484 | 4,139 | ||||||
General and administrative | 58 | 69 | ||||||
Total expenses | 8,470 | 9,604 | ||||||
Operating income (loss) | 2,542 | 5,042 | ||||||
Interest and debt expense | (4,051) | (4,514) | ||||||
Net income before income taxes | (1,509) | 528 | ||||||
Income tax expense | 53 | (54) | ||||||
Net income | (1,456) | 474 | ||||||
2099 Pennsylvania Avenue [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental income | 165 | 432 | ||||||
Tenant reimbursement income | 6 | 74 | ||||||
Fee and other income | 280 | 58 | ||||||
Total revenues | 451 | 564 | ||||||
Building operating | 4,147 | 4,531 | ||||||
Related party management fees | 38 | 13 | ||||||
Operating | 4,185 | 4,544 | ||||||
General and administrative | 798 | 66 | ||||||
Total expenses | 4,983 | 4,610 | ||||||
Operating income (loss) | (4,532) | (4,046) | ||||||
Unrealized gain on interest rate swaps | 1,101 | |||||||
Interest and debt expense | (4,578) | (5,285) | ||||||
Unrealized (depreciation) appreciation on investment in real estate | (749) | 1,965 | ||||||
Net income before income taxes | (9,859) | (6,265) | ||||||
Net income | (9,859) | (6,265) | ||||||
425 Eye Street [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental income | 9,501 | 10,167 | ||||||
Tenant reimbursement income | 879 | 4 | ||||||
Fee and other income | 319 | 801 | ||||||
Total revenues | 10,699 | 10,972 | ||||||
Building operating | 5,148 | 5,448 | ||||||
Related party management fees | 339 | 354 | ||||||
Operating | 5,487 | 5,802 | ||||||
Depreciation and amortization | 5,022 | 5,502 | ||||||
General and administrative | 71 | 75 | ||||||
Total expenses | 10,580 | 11,379 | ||||||
Operating income (loss) | 119 | (407) | ||||||
Unrealized gain on interest rate swaps | 427 | |||||||
Interest and debt expense | (4,548) | (5,664) | ||||||
Net income before income taxes | (4,429) | (5,644) | ||||||
Income tax expense | (2,430) | 2,492 | ||||||
Net income | $ (6,859) | $ (3,152) |
Preferred Equity Investments -
Preferred Equity Investments - Additional Information (Details) - PGRESS Funds | Dec. 16, 2015USD ($) |
Investment Holdings [Line Items] | |
Preferred equity ownership percentage | 20.00% |
PGRESS-A [Member] | |
Investment Holdings [Line Items] | |
Preferred equity investment | $ 12,150,000 |
Prior to Acquisition [Member] | |
Investment Holdings [Line Items] | |
Preferred equity ownership percentage | 5.40% |
Preferred Equity Investments (D
Preferred Equity Investments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Investment Holdings [Line Items] | |
Preferred equity investments | $ 53,941 |
Four Seven Zero Vanderbilt Avenue | |
Investment Holdings [Line Items] | |
Preferred equity ownership percentage | 25.40% |
Preferred Equity Investments, Dividend Rate | 10.30% |
Preferred Equity Investments, Initial Maturity | 2019-02 |
Preferred equity investments | $ 35,305 |
2 Herald Square [Member] | |
Investment Holdings [Line Items] | |
Preferred equity ownership percentage | 25.40% |
Preferred Equity Investments, Dividend Rate | 10.30% |
Preferred Equity Investments, Initial Maturity | 2017-04 |
Preferred equity investments | $ 18,636 |
Preferred Equity Investments 73
Preferred Equity Investments - Parenthetical (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)ft² | |
Schedule Of Investments [Line Items] | |
Area of office properties | 10,400,000 |
Four Seven Zero Vanderbilt Avenue | |
Schedule Of Investments [Line Items] | |
Preferred equity investments, partnership amount | $ | $ 33,750 |
Area of office properties | 650,000 |
Preferred Equity Investments, Dividend Rate | 10.30% |
Preferred equity investments, dividend rate percentage paid | 8.00% |
2 Herald Square [Member] | |
Schedule Of Investments [Line Items] | |
Preferred equity investments, partnership amount | $ | $ 17,500 |
Area of office properties | 369,000 |
Preferred Equity Investments, Dividend Rate | 10.30% |
Preferred equity investments, dividend rate percentage paid | 7.00% |
Investments in Unconsolidated74
Investments in Unconsolidated Joint Ventures - Summary of Investments in Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Equity Method Investments [Line Items] | ||
Investments in unconsolidated joint ventures | $ 7,102 | $ 5,749 |
712 Fifth Avenue [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method ownership percentage | 50.00% | |
Investments in unconsolidated joint ventures | $ 3,577 | 1,697 |
Oder-Center, Germany [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method ownership percentage | 9.50% | |
Investments in unconsolidated joint ventures | $ 3,525 | $ 4,052 |
Investments in Unconsolidated75
Investments in Unconsolidated Joint Ventures - Summary of Income from Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Income from unconsolidated joint ventures | $ 938 | $ 6,850 | ||
Predecessor [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Income from unconsolidated joint ventures | $ 4,241 | $ 1,062 | ||
712 Fifth Avenue [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method ownership percentage | 50.00% | |||
Income from unconsolidated joint ventures | $ 938 | $ 6,734 | ||
712 Fifth Avenue [Member] | Predecessor [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method ownership percentage | 50.00% | |||
Income from unconsolidated joint ventures | $ 4,141 | 2,612 | ||
Oder-Center, Germany [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method ownership percentage | 9.50% | |||
Income from unconsolidated joint ventures | $ 116 | |||
1325 Avenue of the Americas [Member] | Predecessor [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method ownership percentage | 50.00% | |||
Income from unconsolidated joint ventures | $ 100 | $ (1,550) | ||
900 Third Avenue [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method ownership percentage | 11.80% |
Investments in Unconsolidated76
Investments in Unconsolidated Joint Ventures - Additional Information (Details) - USD ($) | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Nov. 23, 2014 | |
712 Fifth Avenue [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 50.00% | ||
712 Fifth Avenue [Member] | Predecessor [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 50.00% | ||
Oder-Center, Germany [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 9.50% | ||
1325 Avenue of the Americas [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of ownership interest held by third party joint venture | 50.00% | ||
Equity interest acquired by payable in shares, value | $ 130,381,000 | ||
Property ownership, percentage | 100.00% | ||
Gain (loss) on investments | $ 239,716,000 | ||
Excess of fair value over the carrying amount of investment | 175,917,000 | ||
Purchase gain | $ 63,799,000 | ||
1325 Avenue of the Americas [Member] | Predecessor [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 50.00% | ||
900 Third Avenue [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 11.80% | ||
Property ownership, percentage | 100.00% | ||
Percentage of interest in property, controlled by predecessor | 88.20% |
Investments in Unconsolidated77
Investments in Unconsolidated Joint Ventures - Summary of Financial Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2013 | |
712 Fifth Avenue [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Rental property, net | $ 221,827 | $ 214,139 | |||
Other assets | 46,126 | 42,255 | |||
Total assets | 267,953 | 256,394 | |||
Notes and mortgages payable | 246,500 | 246,500 | |||
Other liabilities | 30,321 | 15,000 | |||
Total liabilities | 276,821 | 261,500 | |||
Equity | (8,868) | (5,106) | |||
Total liabilities and equity | 267,953 | 256,394 | |||
Rental income | 5,118 | 49,382 | |||
Tenant reimbursement income | 607 | 4,758 | |||
Fee and other income | 232 | 1,235 | |||
Total revenue | 5,957 | 55,375 | |||
Operating | 2,586 | 22,956 | |||
Depreciation and amortization | 1,209 | 11,764 | |||
General and administrative | 32 | ||||
Total expenses | 3,827 | 34,720 | |||
Operating income | 2,130 | 20,655 | |||
Unrealized gain on interest rate swaps | 1,285 | 4,223 | |||
Interest and debt expense | (1,538) | (11,410) | |||
Net income | $ 1,877 | $ 13,468 | |||
712 Fifth Avenue [Member] | Predecessor [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Rental income | $ 41,710 | $ 41,166 | |||
Tenant reimbursement income | 4,282 | 4,311 | |||
Fee and other income | 1,274 | 1,785 | |||
Total revenue | 47,266 | 47,262 | |||
Operating | 20,826 | 22,306 | |||
Depreciation and amortization | 10,127 | 10,009 | |||
General and administrative | 182 | 194 | |||
Total expenses | 31,135 | 32,509 | |||
Operating income | 16,131 | 14,753 | |||
Unrealized gain on interest rate swaps | 5,249 | 10,031 | |||
Interest and debt expense | (13,098) | (14,517) | |||
Net income | 8,282 | 10,267 | |||
Oder-Center, Germany [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Rental property, net | $ 6,626 | ||||
Other assets | 1,228 | ||||
Total assets | 7,854 | ||||
Notes and mortgages payable | 24,143 | ||||
Other liabilities | 245 | ||||
Total liabilities | 24,388 | ||||
Equity | (16,534) | ||||
Total liabilities and equity | 7,854 | ||||
Rental income | 4,458 | ||||
Fee and other income | 60 | ||||
Total revenue | 4,518 | ||||
Operating | 625 | ||||
Depreciation and amortization | 401 | ||||
Total expenses | 1,026 | ||||
Operating income | 3,492 | ||||
Interest and debt expense | (1,186) | ||||
Net income | 2,285 | ||||
Income tax expense | $ (21) | ||||
1325 Avenue of the Americas [Member] | Predecessor [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Rental property, net | 209,455 | ||||
Other assets | 56,479 | ||||
Total assets | 265,934 | ||||
Notes and mortgages payable | 220,000 | ||||
Other liabilities | 5,450 | ||||
Total liabilities | 225,450 | ||||
Equity | 40,484 | ||||
Total liabilities and equity | 265,934 | ||||
Rental income | 33,693 | 33,397 | |||
Tenant reimbursement income | 4,629 | 5,186 | |||
Fee and other income | 1,472 | 1,203 | |||
Total revenue | 39,794 | 39,786 | |||
Operating | 21,381 | 23,667 | |||
Depreciation and amortization | 7,959 | 7,830 | |||
General and administrative | 215 | 238 | |||
Total expenses | 29,555 | 31,735 | |||
Operating income | 10,239 | 8,051 | |||
Interest and debt expense | (10,039) | (11,150) | |||
Net income | 200 | (3,099) | |||
900 Third Avenue [Member] | Predecessor [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Rental property, net | 135,886 | ||||
Other assets | 35,288 | ||||
Total assets | 171,174 | ||||
Notes and mortgages payable | 274,337 | ||||
Other liabilities | 30,797 | ||||
Total liabilities | 305,134 | ||||
Equity | (133,960) | ||||
Total liabilities and equity | 171,174 | ||||
Rental income | 32,269 | 33,601 | |||
Tenant reimbursement income | 3,001 | 3,036 | |||
Fee and other income | 630 | 732 | |||
Total revenue | 35,900 | 37,369 | |||
Operating | 15,818 | 17,130 | |||
Depreciation and amortization | 6,085 | 6,349 | |||
General and administrative | 113 | 156 | |||
Total expenses | 22,016 | 23,635 | |||
Operating income | 13,884 | 13,734 | |||
Unrealized gain on interest rate swaps | 5,759 | 9,985 | |||
Interest and debt expense | (13,269) | (14,872) | |||
Net income | $ 6,374 | $ 8,847 |
Investments in Unconsolidated78
Investments in Unconsolidated Joint Ventures - Summary of Financial Information (Parenthetical) (Details) | Dec. 31, 2015USD ($) |
712 Fifth Avenue [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Difference between carrying amount of investment and equity | $ 6,131 |
Intangible Assets and Intangibl
Intangible Assets and Intangible Liabilities - Summary of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible assets: | ||
Gross amount | $ 655,194 | $ 689,894 |
Accumulated amortization | (143,987) | (20,509) |
Intangible assets, Net | 511,207 | 669,385 |
Intangible liabilities: | ||
Gross amount | 221,672 | 222,985 |
Accumulated amortization | (41,931) | (3,757) |
Intangible Liabilities, Net | $ 179,741 | $ 219,228 |
Intangible Assets and Liabili80
Intangible Assets and Liabilities - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Leases, Acquired-in-Place, Market Adjustment [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Rental income | $ 467,000 | $ 9,917,000 |
Leases, Acquired-in-Place [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization of acquired in-place leases | $ 17,260,000 | $ 128,603,000 |
Intangible Assets and Intangi81
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,016 | $ 20,229 |
2,017 | 6,738 |
2,018 | 8,646 |
2,019 | 7,965 |
2,020 | $ 6,590 |
Intangible Assets and Intangi82
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired In-Place Leases (Details) - Leases, Acquired-in-Place [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2,016 | $ 87,289 |
2,017 | 55,417 |
2,018 | 49,071 |
2,019 | 44,458 |
2,020 | $ 38,944 |
Debt - Additional Information (
Debt - Additional Information (Details) ft² in Millions | Dec. 01, 2015USD ($)ft² | Dec. 31, 2014USD ($) | Dec. 31, 2015ft² |
Debt Instrument [Line Items] | |||
Area of office properties | ft² | 10.4 | ||
Payment of existing loan | $ 435,774,000 | ||
Payment of swap breakage costs | $ 42,011,000 | ||
Maturity date of debt | 2017-10 | ||
1633 Broadway [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage refinancing extended amount | $ 1,000,000,000 | ||
Area of office properties | ft² | 2.6 | ||
Debt instrument term of notes | 7 years | ||
Mortgage refinancing additional amount | $ 250,000,000 | ||
Line of credit facility interest rate description | LIBOR plus 175 basis points | ||
1633 Broadway [Member] | Maximum | |||
Debt Instrument [Line Items] | |||
Mortgage refinancing extended amount | 1,250,000,000 | ||
1633 Broadway [Member] | Existing Loan [Member] | |||
Debt Instrument [Line Items] | |||
Payment of existing loan | $ 926,260,000 | ||
Maturity date of debt | 2016-12 | ||
Weighted average interest rate | 5.35% |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Maturity date of debt | 2017-10 | |
Notes and Mortgages payable, Interest Rate | 4.68% | |
Mortgages and notes payable | $ 2,941,524 | $ 2,852,287 |
Credit Facility | $ 20,000 | |
Credit Facility With Variable Rate [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2018-11 | |
Interest Rate | 1.54% | |
Credit Facility | $ 20,000 | |
1633 Broadway [Member] | ||
Debt Instrument [Line Items] | ||
Notes and Mortgages payable, Interest Rate | 3.52% | |
Mortgages and notes payable | $ 1,013,544 | 926,260 |
1633 Broadway [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2022-12 | |
Notes and Mortgages payable, Interest Rate | 3.54% | |
Mortgages and notes payable | $ 1,000,000 | 772,100 |
1633 Broadway [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2022-12 | |
Notes and Mortgages payable, Interest Rate | 2.15% | |
Mortgages and notes payable | $ 13,544 | 154,160 |
900 Third Avenue [Member] | ||
Debt Instrument [Line Items] | ||
Notes and Mortgages payable, Interest Rate | 4.22% | |
Mortgages and notes payable | $ 274,337 | 274,337 |
900 Third Avenue [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2017-11 | |
Notes and Mortgages payable, Interest Rate | 5.98% | |
Mortgages and notes payable | $ 162,000 | 255,000 |
900 Third Avenue [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2017-11 | |
Notes and Mortgages payable, Interest Rate | 1.69% | |
Mortgages and notes payable | $ 112,337 | 19,337 |
31 West 52nd Street [Member] | ||
Debt Instrument [Line Items] | ||
Notes and Mortgages payable, Interest Rate | 4.23% | |
Mortgages and notes payable | $ 413,490 | 413,490 |
31 West 52nd Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2017-12 | |
Notes and Mortgages payable, Interest Rate | 6.04% | |
Mortgages and notes payable | $ 237,600 | 337,500 |
31 West 52nd Street [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2017-12 | |
Notes and Mortgages payable, Interest Rate | 1.79% | |
Mortgages and notes payable | $ 175,890 | 75,990 |
One Market Plaza [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2019-12 | |
Notes and Mortgages payable, Interest Rate | 6.14% | |
Mortgages and notes payable | $ 857,037 | 853,711 |
Waterview [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2017-06 | |
Notes and Mortgages payable, Interest Rate | 5.76% | |
Mortgages and notes payable | $ 210,000 | 210,000 |
1899 Pennsylvania Avenue [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2020-11 | |
Notes and Mortgages payable, Interest Rate | 4.88% | |
Mortgages and notes payable | $ 89,116 | 90,489 |
Liberty Place [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2018-06 | |
Notes and Mortgages payable, Interest Rate | 4.50% | |
Mortgages and notes payable | $ 84,000 | $ 84,000 |
Debt - Summary of Outstanding85
Debt - Summary of Outstanding Debt (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |
Letter of credit | $ 200,000,000 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Revolving Credit Facility | $ 1,000,000,000 |
One Market Plaza [Member] | |
Debt Instrument [Line Items] | |
Ownership interest rate of property | 49.00% |
Debt - Principal Repayments Req
Debt - Principal Repayments Required For Mortgages and Notes and Credit Facility (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 1,441 |
2,017 | 899,340 |
2,018 | 105,588 |
2,019 | 858,705 |
2,020 | 82,906 |
Thereafter | $ 1,013,544 |
Derivatives Instruments and H87
Derivatives Instruments and Hedging Activities - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)Derivative | Nov. 25, 2015USD ($) | Sep. 16, 2015USD ($)Derivative | |
Derivative [Line Items] | ||||
Change in value of interest rate swaps | $ (9,241,000) | |||
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Number of derivatives | Derivative | 14 | |||
Aggregate notional amount | $ 1,200,000,000 | |||
Unrealized gain on interest rate swaps | $ 15,084,000 | 75,760,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Change in value of interest rate swaps | 9,241,000 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | 1633 Broadway [Member] | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Number of derivatives | Derivative | 3 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | 1633 Broadway [Member] | September Two Thousand Fifteen | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | 1,000,000,000 | $ 1,000,000,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | 1633 Broadway [Member] | November Two Thousands And Fifteen | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | $ 400,000,000 | $ 400,000,000 |
Derivatives Instruments and H88
Derivatives Instruments and Hedging Activities - Summary of Outstanding Interest Rate Swaps (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Nov. 25, 2015 | Sep. 16, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||||
Interest rate swap liabilities | $ 93,936,000 | $ 194,196,000 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | 1,200,000,000 | |||
Interest rate swap liabilities | 84,695,000 | 194,196,000 | ||
Not Designated as Hedging Instrument [Member] | One Market Plaza [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 840,000,000 | |||
Maturity Date | 2017-08 | |||
Strike Rate | 5.02% | |||
Interest rate swap liabilities | $ 55,404,000 | 86,099,000 | ||
Not Designated as Hedging Instrument [Member] | One Market Plaza [Member] | Minimum | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Effective Dates | 2007-08 | |||
Not Designated as Hedging Instrument [Member] | One Market Plaza [Member] | Maximum | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Effective Dates | 2012-08 | |||
Not Designated as Hedging Instrument [Member] | 31 West 52nd Street [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 237,600,000 | |||
Effective Dates | 2007-12 | |||
Maturity Date | 2017-12 | |||
Strike Rate | 4.79% | |||
Interest rate swap liabilities | $ 17,661,000 | 28,748,000 | ||
Not Designated as Hedging Instrument [Member] | 900 Third Avenue [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 162,000,000 | |||
Effective Dates | 2007-11 | |||
Maturity Date | 2017-11 | |||
Strike Rate | 4.78% | |||
Interest rate swap liabilities | $ 11,630,000 | 19,158,000 | ||
Not Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap liabilities | $ 60,191,000 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap liabilities | 9,241,000 | |||
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap [Member] | September Two Thousand Fifteen | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 1,000,000,000 | $ 1,000,000,000 | ||
Strike Rate | 1.79% | |||
Interest rate swap liabilities | $ 9,204,000 | |||
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap [Member] | November Two Thousands And Fifteen | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 400,000,000 | $ 400,000,000 | ||
Strike Rate | 2.35% | |||
Interest rate swap liabilities | $ 37,000 | |||
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Minimum | Interest Rate Swap [Member] | September Two Thousand Fifteen | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Effective Dates | 2015-12 | |||
Maturity Date | 2015-12 | |||
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Minimum | Interest Rate Swap [Member] | November Two Thousands And Fifteen | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Effective Dates | 2020-12 | |||
Maturity Date | 2021-12 | |||
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Maximum | Interest Rate Swap [Member] | September Two Thousand Fifteen | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Effective Dates | 2020-12 | |||
Maturity Date | 2020-12 |
Accumulated Other Comprehensi89
Accumulated Other Comprehensive (Loss) Income ("AOCI") - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
OCI before reclassifications | $ (7,843) | [1] |
Net current period OCI | (7,843) | |
Balance as of December 31, 2015 | (7,843) | |
Pro Rata Share of OCI of Unconsolidated Joint Ventures [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
OCI before reclassifications | (412) | [1] |
Net current period OCI | (412) | |
Balance as of December 31, 2015 | (412) | |
Change in Value of Interest Rate Swaps [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
OCI before reclassifications | (7,431) | [1] |
Net current period OCI | (7,431) | |
Balance as of December 31, 2015 | $ (7,431) | |
[1] | Net of amounts attributable to the noncontrolling interests in the Operating Partnership. |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Noncontrolling Interest [Abstract] | ||
Consolidated joint ventures and funds | $ 651,486 | $ 685,888 |
Operating partnerships | 898,047 | $ 958,203 |
Redemption value | $ 935,048 | |
Common units conversion basis | one-for-one |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in Property Funds | $ 248,824 | $ 183,216 |
Investments in Alternative Investment Funds | 167,614 | 140,171 |
Total real estate fund investments | 416,438 | 323,387 |
Marketable securities | 21,521 | 20,159 |
Total assets | 437,959 | 343,546 |
Interest rate swap liabilities | 93,936 | 194,196 |
Total liabilities | 93,936 | 194,196 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 21,521 | 20,159 |
Total assets | 21,521 | 20,159 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swap liabilities | 93,936 | 194,196 |
Total liabilities | 93,936 | 194,196 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in Property Funds | 248,824 | 183,216 |
Investments in Alternative Investment Funds | 167,614 | 140,171 |
Total real estate fund investments | 416,438 | 323,387 |
Total assets | $ 416,438 | $ 323,387 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Property Funds [Member] | 12 Months Ended |
Dec. 31, 2015Investments | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Number of investments held by fund | 4 |
Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value measurement anticipated investment holding period | 1 year |
Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value measurement anticipated investment holding period | 10 years |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Significant Unobservable Quantitative Inputs Utilized in Determining Fair Value of Investments (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property Funds [Member] | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rates | 7.00% | 6.50% |
Terminal capitalization rates | 5.00% | 5.50% |
Property Funds [Member] | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rates | 7.50% | 7.25% |
Terminal capitalization rates | 6.00% | 6.00% |
Property Funds [Member] | Weighted average (based on fair value of investments) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rates | 7.18% | 6.83% |
Terminal capitalization rates | 5.47% | 5.72% |
Alternative Investment Funds [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spread | 2.34% | |
Alternative Investment Funds [Member] | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Preferred return | 7.32% | 8.50% |
Alternative Investment Funds [Member] | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Preferred return | 14.02% | 14.00% |
Alternative Investment Funds [Member] | Weighted average (based on fair value of investments) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Preferred return | 9.51% | 11.07% |
Credit spread | 2.34% |
Fair Value Measurements - Sum94
Fair Value Measurements - Summary of Changes in Fair Value of Real Estate Fund Investments in Level 3 (Details) - Real Estate Fund [Member] - Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 323,387 | $ 2,158,889 |
Purchases / Additions | 170,218 | 258,677 |
Sales / Transfer of assets | (98,368) | (2,222,176) |
Net realized gains | 7,455 | 32,954 |
Previously recorded unrealized gains on exited investments | (6,584) | |
Net unrealized gains | 20,330 | 95,043 |
Ending Balance | $ 416,438 | $ 323,387 |
Fair Value Measurements - Sum95
Fair Value Measurements - Summary of Carrying Amounts and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $ 437,959 | $ 343,546 |
Revolving credit facility | 20,000 | |
Total liabilities | 93,936 | 194,196 |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 118,561 | 401,215 |
Total Assets | 118,561 | 401,215 |
Notes and mortgages payable | 2,941,524 | 2,852,287 |
Revolving credit facility | 20,000 | |
Total liabilities | 2,961,524 | 2,852,287 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 118,561 | 401,215 |
Total Assets | 118,561 | 401,215 |
Notes and mortgages payable | 2,907,242 | 2,796,842 |
Revolving credit facility | 20,723 | |
Total liabilities | $ 2,927,965 | $ 2,796,842 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rents under Non-Cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 486,384 |
2,017 | 515,160 |
2,018 | 515,559 |
2,019 | 502,487 |
2,020 | 479,075 |
Thereafter | 3,112,430 |
Total | $ 5,611,095 |
Fee and Other Income - Schedule
Fee and Other Income - Schedule of Fee and Other Income (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Fee income | ||||
Property management fees | $ 587 | $ 5,763 | ||
Acquisition and disposition fees | 510 | 1,985 | ||
Construction fees | 58 | 216 | ||
Other fees | 21 | 2,284 | ||
Total fee income | 1,176 | 10,248 | ||
Other income | 1,629 | 14,745 | ||
Total fee and other income | $ 2,805 | $ 24,993 | ||
Predecessor [Member] | ||||
Fee income | ||||
Property management fees | $ 15,599 | $ 15,641 | ||
Acquisition and disposition fees | 25,038 | 2,785 | ||
Construction fees | 5,718 | 6,937 | ||
Other fees | 2,743 | 1,063 | ||
Total fee income | 49,098 | 26,426 | ||
Total fee and other income | $ 49,098 | $ 26,426 |
Fee and Other Income - Schedu98
Fee and Other Income - Schedule of Fee and Other Income (Parenthetical) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Fee And Other Income [Line Items] | ||
Fee income | $ 1,176 | $ 10,248 |
712 Fifth Avenue [Member] | ||
Fee And Other Income [Line Items] | ||
Fee income | $ 222 | $ 2,308 |
Interest and Other Income (Lo99
Interest and Other Income (Loss), net - Schedule Of Interest And Other Income (Loss), net (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||
Mark-to-market of investments in our deferred compensation plans | $ (321) | $ 197 | ||
Interest and other income | 142 | 674 | ||
Total interest and other income (loss) | $ (179) | $ 871 | ||
Predecessor [Member] | ||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||
Mark-to-market of investments in our deferred compensation plans | $ 1,706 | $ 5,532 | ||
Interest and other income | 773 | 3,875 | ||
Total interest and other income (loss) | $ 2,479 | $ 9,407 |
Interest and Debt Expense - Det
Interest and Debt Expense - Details of Interest and Debt Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Interest And Debt Expense [Line Items] | ||||
Interest and debt expense | $ 43,503 | $ 165,801 | ||
Amortization of deferred financing costs | 240 | 2,565 | ||
Total interest and debt expense | $ 43,743 | $ 168,366 | ||
Predecessor [Member] | ||||
Interest And Debt Expense [Line Items] | ||||
Interest and debt expense | $ 28,196 | $ 29,373 | ||
Amortization of deferred financing costs | 389 | 434 | ||
Total interest and debt expense | $ 28,585 | $ 29,807 |
Interest and Debt Expense - 101
Interest and Debt Expense - Details of Interest and Debt Expense (Parenthetical) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Interest And Debt Expense [Abstract] | |
Defeasance and debt breakage costs | $ 25,717 |
Formation Related Costs - Sched
Formation Related Costs - Schedule of Formation Related Costs (Details) $ in Thousands | 1 Months Ended |
Dec. 31, 2014USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Total formation related costs | $ 143,437 |
IPO [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Total formation related costs | 143,437 |
IPO [Member] | Founders Grants [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Total formation related costs | 71,000 |
IPO [Member] | Transfer Taxes [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Total formation related costs | 51,306 |
IPO [Member] | Accounting, Legal and Other Professional Fees [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Total formation related costs | $ 21,131 |
Incentive Compensation - Additi
Incentive Compensation - Additional Information (Details) - USD ($) | Apr. 01, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 391,000 | $ 7,000,000 | ||||
Acceleration of vesting stock awards | $ 1,861,000 | |||||
Fair value of stock options granted | $ 4.44 | $ 3.39 | ||||
Employee Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | 79,000 | $ 1,241,000 | ||||
Acceleration of vesting stock awards | $ 294,000 | |||||
Vesting period | 5 years | |||||
Stock Options Expiration Period | 10 years | |||||
Unrecognized compensation cost | $ 4,159,000 | |||||
Unrecognized compensation cost expected to be recognized over a weighted-average period | 4 years | |||||
Restricted Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 16,000 | $ 142,000 | ||||
Fair value granted | 100,000 | $ 100,000 | ||||
Equity Incentive Plan [Member] | Full Value Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares available for grant | 14,384,791 | |||||
Equity Incentive Plan [Member] | Full Value Awards [Member] | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares available for grant | 17,142,857 | |||||
Equity Incentive Plan [Member] | Not Full Value Awards [Member] | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares available for grant | 34,285,714 | |||||
LTIP Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | 296,000 | $ 4,507,000 | ||||
Acceleration of vesting stock awards | $ 1,567,000 | |||||
Vesting period | 5 years | |||||
Unrecognized compensation cost | $ 10,486,000 | |||||
Unrecognized compensation cost expected to be recognized over a weighted-average period | 3 years 9 months 18 days | |||||
Fair value granted | 14,700,000 | $ 2,081,000 | ||||
Two Thousand Fifteen Performance Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 1,110,000 | |||||
Vesting period | 5 years | |||||
Performance measurement period, term | 3 years | |||||
Performance measurement period, start date | Apr. 1, 2015 | |||||
Performance measurement period, end date | Mar. 31, 2018 | |||||
Fair value of awards granted | $ 7,930,000 | |||||
Two Thousand Fifteen Performance Plan | Vesting on the date the Compensation Committee determines the awards earned | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of the awards that vest | 50.00% | |||||
Two Thousand Fifteen Performance Plan | Vesting on April 1, 2019 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of the awards that vest | 25.00% | |||||
Two Thousand Fifteen Performance Plan | Vesting on April 1, 2020 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of the awards that vest | 25.00% | |||||
Two Thousand Fifteen Performance Plan | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Total return to stockholders for participants to start earning awards on absolute basis | 21.00% | |||||
Percentage by which to exceed the performance of the SNL Office REIT Index for participants to start to earn awards on relative basis | 1.00% | |||||
Total return to stockholders for participants to fully earn awards on absolute basis | 40.00% | |||||
Percentage by which to exceed performance of the SNL office REIT index for participants to fully earn awards on relative basis | 7.00% | |||||
1993 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Assets of deferred compensation plan | $ 28,148,000 | $ 28,148,000 | $ 28,947,000 | $ 28,148,000 |
Incentive Compensation - Summar
Incentive Compensation - Summary of Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted-Average Exercise Price, Outstanding at December 31, 2014 | $ / shares | $ 17.50 |
Weighted-Average Exercise Price, Granted | $ / shares | 19.08 |
Weighted-Average Exercise Price, Exercised | $ / shares | 17.50 |
Weighted-Average Exercise Price, Cancelled or expired | $ / shares | 17.50 |
Weighted-Average Exercise Price, Outstanding at December 31, 2015 | $ / shares | 17.69 |
Weighted-Average Exercise Price, Options vested and expected to vest at December 31, 2015 | $ / shares | 17.69 |
Weighted-Average Exercise Price, Options exercisable at December 31, 2015 | $ / shares | $ 17.50 |
Weighted-Average Remaining Contractual Term (in years), Outstanding at December 31, 2015 | 8 years 10 months 24 days |
Weighted-Average Remaining Contractual Term (in years), Options vested and expected to vest at December 31, 2015 | 8 years 10 months 24 days |
Weighted-Average Remaining Contractual Term (in years), Options exercisable at December 31, 2015 | 8 years 10 months 24 days |
Aggregate Intrinsic Value, Outstanding at December 31, 2015 | $ | $ 854,670 |
Aggregate Intrinsic Value, Options vested and expected to vest at December 31, 2015 | $ | 803,000 |
Aggregate Intrinsic Value, Options exercisable at December 31, 2015 | $ | $ 221,000 |
Employee Stock Option | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares, Outstanding at December 31, 2014 | shares | 1,489,500 |
Shares, Granted | shares | 200,000 |
Shares, Exercised | shares | (200) |
Shares, Cancelled or expired | shares | (64,850) |
Shares, Outstanding at December 31, 2015 | shares | 1,624,450 |
Shares, Options vested and expected to vest at December 31, 2015 | shares | 1,524,250 |
Shares, Options exercisable at December 31, 2015 | shares | 368,250 |
Incentive Compensation - Sum105
Incentive Compensation - Summary of Fair Value of the Option (Details) - Employee Stock Option | 1 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility | 23.00% | 27.00% |
Expected life | 6 years 6 months | 6 years 6 months |
Risk free interest rate | 2.10% | 1.80% |
Expected dividend yield | 2.30% | 2.00% |
Incentive Compensation - Sum106
Incentive Compensation - Summary of LTIP Unit Activity (Details) - LTIP Units | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Units, Unvested at December 31, 2014 | shares | 885,713 |
Units, Granted | shares | 116,095 |
Units, Vested | shares | (286,849) |
Units, Unvested at December 31, 2015 | shares | 714,959 |
Weighted-Average Grant-Date Fair Value, Unvested at December 31, 2014 | $ / shares | $ 16.60 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | 17.93 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 16.54 |
Weighted-Average Grant-Date Fair Value, Unvested at December 31, 2015 | $ / shares | $ 16.84 |
Incentive Compensation - Sum107
Incentive Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Units, Unvested at December 31, 2014 | shares | 5,714 |
Units, Granted | shares | 5,219 |
Units, Vested | shares | (5,714) |
Units, Unvested at December 31, 2015 | shares | 5,219 |
Weighted-Average Grant-Date Fair Value, Unvested at December 31, 2014 | $ / shares | $ 17.50 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | 19.16 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 17.50 |
Weighted-Average Grant-Date Fair Value, Unvested at December 31, 2015 | $ / shares | $ 19.16 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Assets and Liabilities of Variable Interest Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Cash and restricted cash | $ 41,823 | $ 55,728 |
Total assets | 8,794,143 | 9,030,441 |
Loans payable to noncontrolling interests | 45,662 | 42,195 |
Other liabilities | 45,101 | 43,950 |
Total liabilities | 3,483,593 | 3,475,488 |
Variable Interest Entity [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments, at fair value | 8,025 | 17,136 |
Investments, at cost | 63,511 | 63,550 |
Cash and restricted cash | 497 | 4,976 |
Total assets | 72,033 | 85,662 |
Loans payable to noncontrolling interests | 45,662 | 42,195 |
Other liabilities | 195 | 131 |
Total liabilities | $ 45,857 | $ 42,326 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Jan. 15, 2016 | Dec. 31, 2014 | Dec. 31, 2015 |
Income Taxes [Line Items] | |||
Minimum percentage of taxable income distributed to shareholders | 90.00% | ||
Income tax expense | $ 505,000 | $ 2,566,000 | |
Cash dividend | $ 0.039 | ||
Return on capital | 89.20% | ||
Ordinary dividend rate | 10.80% | ||
Return Of Capital | |||
Income Taxes [Line Items] | |||
Cash dividend | $ 0.289 | ||
Ordinary Dividend | |||
Income Taxes [Line Items] | |||
Cash dividend | $ 0.035 | ||
Subsequent Event [Member] | |||
Income Taxes [Line Items] | |||
Cash dividend | $ 0.095 | ||
Taxable REIT Subsidiaries [Member] | |||
Income Taxes [Line Items] | |||
Income tax expense | $ 189,000 | $ 2,545,000 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation Net Income Attributable to Estimated Taxable Income (Loss) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||||
Net (loss) income attributable to Paramount Group, Inc. | $ 57,308 | $ 8,905 | $ 1,116 | $ (4,709) | $ (9,731) | $ (4,419) |
Book to tax differences: | ||||||
Straight-line and prepaid rents | 6,927 | (36,131) | ||||
Depreciation and amortization | 11,691 | 104,399 | ||||
Stock based compensation | 57,740 | 5,794 | ||||
Gain on consolidation of unconsolidated joint venture | (192,891) | |||||
Swap breakage costs | (11,316) | (27,147) | ||||
Unrealized gain on interest rate swaps | (6,832) | (29,586) | ||||
Earnings of unconsolidated joint ventures, including real estate investments | (5,347) | (12,909) | ||||
Other, net | 20,832 | 7,356 | ||||
Estimated taxable income (loss) (unaudited) | $ (61,888) | $ 7,357 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Tax Liabilities (Details) - Predecessor [Member] $ in Thousands | Dec. 31, 2013USD ($) |
Income Taxes [Line Items] | |
Investment in partnerships/real estate | $ 175,438 |
Basis adjustments | 31,981 |
Deferred compensation | (9,886) |
Net operating losses & carryovers | (9,158) |
Valuation allowance | 1,710 |
Other, net | (491) |
Total deferred tax liabilities | $ 189,594 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Position (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ||||
Income before income taxes | $ 73,227 | $ 23,709 | ||
Income tax expense | $ 505 | $ 2,566 | ||
Predecessor [Member] | ||||
Income Taxes [Line Items] | ||||
Income before income taxes | $ 127,859 | $ 313,868 | ||
Income tax expense | $ 18,461 | $ 11,029 | ||
Effective income tax rate | 14.40% | 3.50% |
Income Taxes - Summary of Tax R
Income Taxes - Summary of Tax Rate Reconciliation (Details) - Predecessor [Member] | 11 Months Ended | 12 Months Ended |
Nov. 23, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ||
Statutory U.S. federal income tax rate | 35.00% | 35.00% |
Income passed through to common unitholders and noncontrolling interests | (24.10%) | (31.60%) |
State and local income taxes | 5.50% | 0.80% |
Other | (2.00%) | (0.70%) |
Effective income tax rate | 14.40% | 3.50% |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
Numerator: | ||||||
Net (loss) income attributable to common stockholders - basic and diluted | $ 57,308 | $ 8,905 | $ 1,116 | $ (4,709) | $ (9,731) | $ (4,419) |
Denominator: | ||||||
Denominator for basic (loss) income per share - weighted average shares | 212,106,718 | 212,106,718 | ||||
Effect of dilutive employee stock options and restricted share awards | 1,000 | |||||
Denominator for diluted (loss) income per share - weighted average shares | 212,107,908 | 212,106,718 | ||||
(Loss) income per share - basic and diluted | $ 0.27 | $ (0.02) |
Earnings Per Share - Summary115
Earnings Per Share - Summary of Computation of Earnings Per Share (Parenthetical) (Details) - shares shares in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Effect of dilutive securities excluded from computation of earning per share | 53,043 | 53,281 |
Summary of Quarterly Results116
Summary of Quarterly Results (unaudited) - Summary of Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Quarterly Financial Information [Line Items] | ||||||||||||
Revenues | $ 66,135 | $ 170,528 | $ 167,726 | $ 162,928 | $ 161,226 | $ 662,408 | ||||||
Net (Loss) Income | $ 57,308 | $ 8,905 | $ 1,116 | $ (4,709) | $ (9,731) | $ (4,419) | ||||||
Net Income (Loss) Per Common Share Basic | $ 0.27 | $ 0.04 | $ 0.01 | $ (0.02) | $ (0.05) | $ (0.02) | ||||||
Net Income (Loss) Per Common Share Diluted | $ 0.27 | $ 0.04 | $ 0.01 | $ (0.02) | $ (0.05) | $ (0.02) | ||||||
Predecessor [Member] | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Revenues | $ 36,043 | $ 71,392 | $ 58,328 | $ 61,626 | $ 227,389 | $ 419,890 | ||||||
Net (Loss) Income | $ (968) | $ 12,904 | $ 5,178 | $ 4,396 | $ 21,510 | $ 16,514 |
Related Party - Additional Info
Related Party - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 27,299,000 | $ 27,299,000 |
Maturity Date | 2017-10 | |
Note payable, fixed bearing interest rate | 0.50% | |
Interest Expense, Related Party | $ 136,000 | |
Fee and other income | $ 2,805,000 | 24,993,000 |
Acquisition and transaction related costs | 10,355,000 | |
Management Agreements | ||
Related Party Transaction [Line Items] | ||
Fee and other income | 776,000 | |
CNBB-RDF Holdings, LP | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 24,500,000 | |
CNBB-RDF Holdings, LP | Property Funds [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate amount received for reimbursement of costs and expenses | 5,482,000 | |
Amount received for reimbursement of costs and expenses | 121,000 | |
CNBB-RDF Holdings Otto Family | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 2,799,000 | |
Hamburg Trust Consulting GMBH (“HTC”) [Member] | ||
Related Party Transaction [Line Items] | ||
Mark-up cost percentage | 10.00% | |
Acquisition and transaction related costs | $ 349,000 | |
Hamburg Trust Consulting GMBH (“HTC”) [Member] | Chairman, Chief Executive Officer and President [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership | 100.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2015ft² | |
Other Commitments [Line Items] | |
Prime retail space of building | 10,400,000 |
718 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Put right exercise period after sale of interest | 4 years |
Put right notice period | 12 months |
Put right actual purchase period | 5 years |
712 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Equity method ownership percentage | 50.00% |
Predecessor [Member] | 718 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Percentage of tenancy-in-common interest in property | 50.00% |
Predecessor [Member] | 712 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Equity method ownership percentage | 50.00% |
Owned by Affiliate [Member] | Predecessor [Member] | 718 Fifth Avenue [Member] | Third Party Affiliate [Member] | |
Other Commitments [Line Items] | |
Equity method ownership percentage | 25.00% |
Owned by Affiliate [Member] | Parent Company [Member] | Put Right Exercised [Member] | 718 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Equity method ownership percentage | 25.00% |
Owned by Affiliate [Member] | Retail Type Space [Member] | Predecessor [Member] | 718 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Prime retail space of building | 19,050 |
Segments - Additional Informati
Segments - Additional Information (Details) - Segment | 11 Months Ended | 12 Months Ended |
Nov. 23, 2014 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 1 | |
Predecessor [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 3 |
Segments - Schedule of Each Rep
Segments - Schedule of Each Reportable Segment Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
Revenues | ||||||
Rental income | $ 57,465 | $ 586,530 | ||||
Tenant reimbursement income | 5,865 | 50,885 | ||||
Fee and other income | 2,805 | 24,993 | ||||
Total revenues | 66,135 | $ 170,528 | $ 167,726 | $ 162,928 | $ 161,226 | 662,408 |
Total expenses | 62,699 | 591,789 | ||||
Operating income (loss) | 3,436 | 70,619 | ||||
Income from real estate fund investments | 1,412 | 37,975 | ||||
Income from unconsolidated joint ventures | 938 | 6,850 | ||||
Unrealized gain on interest rate swaps | 15,084 | 75,760 | ||||
Interest and other income (loss), net | (179) | 871 | ||||
Interest and debt expense | (43,743) | (168,366) | ||||
Formation related costs | (143,437) | |||||
Gain on consolidation of an unconsolidated joint venture | 239,716 | |||||
Net income before income taxes | 73,227 | 23,709 | ||||
Income tax (expense) benefit | (505) | (2,566) | ||||
Net income | 72,722 | 21,143 | ||||
Depreciation and amortization | 34,481 | 294,624 | ||||
General and administrative | 2,207 | 42,056 | ||||
Interest and debt expense | 43,743 | 168,366 | ||||
Transfer taxes due in connection with the sale of shares by a former joint venture partner | 10,355 | |||||
Income tax expense (benefit) | 505 | 2,566 | ||||
Net Operating Income from unconsolidated joint ventures | 1,680 | 16,580 | ||||
Income from real estate fund investments | (1,412) | (37,975) | ||||
Income from unconsolidated joint ventures | (938) | (6,850) | ||||
Fee income | (1,176) | (10,248) | ||||
Unrealized gain on interest rate swaps | (15,084) | (75,760) | ||||
Interest and other (income) loss, net | 179 | (871) | ||||
Gain on consolidation of unconsolidated joint ventures | (239,716) | |||||
Net Operating Income | 42,040 | 423,986 | ||||
Total assets | 9,030,441 | 8,794,143 | 8,794,143 | |||
Total liabilities | 3,475,488 | 3,483,593 | 3,483,593 | |||
Total equity | 5,554,953 | 5,310,550 | 5,310,550 | |||
Total formation related costs | 143,437 | |||||
Transfer Taxes [Member] | ||||||
Revenues | ||||||
Transfer taxes due in connection with the sale of shares by a former joint venture partner | 5,872 | |||||
Deal Cost [Member] | ||||||
Revenues | ||||||
Transfer taxes due in connection with the sale of shares by a former joint venture partner | 4,483 | |||||
Owned Properties [Member] | ||||||
Revenues | ||||||
Rental income | 57,169 | 583,825 | ||||
Tenant reimbursement income | 5,865 | 50,885 | ||||
Fee and other income | 1,629 | 14,737 | ||||
Total revenues | 64,663 | 649,447 | ||||
Total expenses | 61,091 | 541,774 | ||||
Operating income (loss) | 3,572 | 107,673 | ||||
Income from unconsolidated joint ventures | 938 | 6,734 | ||||
Unrealized gain on interest rate swaps | 15,084 | 75,760 | ||||
Interest and other income (loss), net | 30 | 367 | ||||
Interest and debt expense | (41,633) | (160,058) | ||||
Net income before income taxes | (22,009) | 30,476 | ||||
Income tax (expense) benefit | (475) | 310 | ||||
Net income | (22,484) | 30,786 | ||||
Depreciation and amortization | 34,378 | 293,433 | ||||
General and administrative | 91 | |||||
Interest and debt expense | 41,633 | 160,058 | ||||
Income tax expense (benefit) | 475 | (310) | ||||
Net Operating Income from unconsolidated joint ventures | 1,680 | 16,210 | ||||
Income from unconsolidated joint ventures | (938) | (6,734) | ||||
Unrealized gain on interest rate swaps | (15,084) | (75,760) | ||||
Interest and other (income) loss, net | (30) | (367) | ||||
Net Operating Income | 39,721 | 417,316 | ||||
Total assets | 8,345,966 | 8,172,529 | 8,172,529 | |||
Total liabilities | 3,350,798 | 3,309,104 | 3,309,104 | |||
Total equity | 4,995,168 | 4,863,425 | 4,863,425 | |||
Other [Member] | ||||||
Revenues | ||||||
Rental income | 296 | 2,705 | ||||
Fee and other income | 1,176 | 10,256 | ||||
Total revenues | 1,472 | 12,961 | ||||
Total expenses | 1,608 | 50,015 | ||||
Operating income (loss) | (136) | (37,054) | ||||
Income from real estate fund investments | 1,412 | 37,975 | ||||
Income from unconsolidated joint ventures | 116 | |||||
Interest and other income (loss), net | (209) | 504 | ||||
Interest and debt expense | (2,110) | (8,308) | ||||
Formation related costs | (143,437) | |||||
Gain on consolidation of an unconsolidated joint venture | 239,716 | |||||
Net income before income taxes | 95,236 | (6,767) | ||||
Income tax (expense) benefit | (30) | (2,876) | ||||
Net income | 95,206 | (9,643) | ||||
Depreciation and amortization | 103 | 1,191 | ||||
General and administrative | 2,116 | 42,056 | ||||
Interest and debt expense | 2,110 | 8,308 | ||||
Income tax expense (benefit) | 30 | 2,876 | ||||
Net Operating Income from unconsolidated joint ventures | 370 | |||||
Income from real estate fund investments | (1,412) | (37,975) | ||||
Income from unconsolidated joint ventures | (116) | |||||
Fee income | (1,176) | (10,248) | ||||
Interest and other (income) loss, net | 209 | (504) | ||||
Gain on consolidation of unconsolidated joint ventures | (239,716) | |||||
Net Operating Income | 2,319 | 6,670 | ||||
Total assets | 684,475 | 621,614 | 621,614 | |||
Total liabilities | 124,690 | 174,489 | 174,489 | |||
Total equity | 559,785 | $ 447,125 | 447,125 | |||
Total formation related costs | $ 143,437 | |||||
Other [Member] | Transfer Taxes [Member] | ||||||
Revenues | ||||||
Transfer taxes due in connection with the sale of shares by a former joint venture partner | 5,872 | |||||
Other [Member] | Deal Cost [Member] | ||||||
Revenues | ||||||
Transfer taxes due in connection with the sale of shares by a former joint venture partner | $ 4,483 |
Segments - Schedule of Each 121
Segments - Schedule of Each Reportable Segment Information of Predecessor (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Nov. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Revenues | ||||||||||||
Rental income | $ 57,465 | $ 586,530 | ||||||||||
Tenant reimbursement income | 5,865 | 50,885 | ||||||||||
Fee and other income | 2,805 | 24,993 | ||||||||||
Total revenues | 66,135 | $ 170,528 | $ 167,726 | $ 162,928 | $ 161,226 | 662,408 | ||||||
Total expenses | 62,699 | 591,789 | ||||||||||
Operating income (loss) | 3,436 | 70,619 | ||||||||||
Income from unconsolidated joint ventures | 938 | 6,850 | ||||||||||
Unrealized gain (loss) on interest rate swaps | 15,084 | 75,760 | ||||||||||
Interest and other income (loss), net | (179) | 871 | ||||||||||
Interest and debt expense | (43,743) | (168,366) | ||||||||||
Net income before income taxes | 73,227 | 23,709 | ||||||||||
Income tax expense | (505) | (2,566) | ||||||||||
Net income | 72,722 | 21,143 | ||||||||||
Net (loss) income attributable to common stockholders | 57,308 | 8,905 | $ 1,116 | $ (4,709) | $ (9,731) | (4,419) | ||||||
Total assets | 9,030,441 | 8,794,143 | 8,794,143 | |||||||||
Total liabilities | 3,475,488 | 3,483,593 | 3,483,593 | |||||||||
Total equity | 5,554,953 | 5,310,550 | 5,310,550 | |||||||||
Owned Properties [Member] | ||||||||||||
Revenues | ||||||||||||
Rental income | 57,169 | 583,825 | ||||||||||
Tenant reimbursement income | 5,865 | 50,885 | ||||||||||
Fee and other income | 1,629 | 14,737 | ||||||||||
Total revenues | 64,663 | 649,447 | ||||||||||
Total expenses | 61,091 | 541,774 | ||||||||||
Operating income (loss) | 3,572 | 107,673 | ||||||||||
Income from unconsolidated joint ventures | 938 | 6,734 | ||||||||||
Unrealized gain (loss) on interest rate swaps | 15,084 | 75,760 | ||||||||||
Interest and other income (loss), net | 30 | 367 | ||||||||||
Interest and debt expense | (41,633) | (160,058) | ||||||||||
Net income before income taxes | (22,009) | 30,476 | ||||||||||
Income tax expense | (475) | 310 | ||||||||||
Net income | (22,484) | 30,786 | ||||||||||
Total assets | 8,345,966 | 8,172,529 | 8,172,529 | |||||||||
Total liabilities | 3,350,798 | 3,309,104 | 3,309,104 | |||||||||
Total equity | $ 4,995,168 | $ 4,863,425 | $ 4,863,425 | |||||||||
Predecessor [Member] | ||||||||||||
Revenues | ||||||||||||
Rental income | $ 30,208 | $ 30,406 | ||||||||||
Tenant reimbursement income | 1,646 | 1,821 | ||||||||||
Distributions from real estate fund investments | 17,083 | 29,184 | ||||||||||
Realized and unrealized gains, net | 129,354 | 332,053 | ||||||||||
Fee and other income | 49,098 | 26,426 | ||||||||||
Total revenues | $ 36,043 | $ 71,392 | $ 58,328 | $ 61,626 | 227,389 | 419,890 | ||||||
Total expenses | 76,992 | 88,299 | ||||||||||
Operating income (loss) | 150,397 | 331,591 | ||||||||||
Income from unconsolidated joint ventures | 4,241 | 1,062 | ||||||||||
Unrealized gain (loss) on interest rate swaps | (673) | 1,615 | ||||||||||
Interest and other income (loss), net | 2,479 | 9,407 | ||||||||||
Interest and debt expense | (28,585) | (29,807) | ||||||||||
Net income before income taxes | 127,859 | 313,868 | ||||||||||
Income tax expense | (18,461) | (11,029) | ||||||||||
Net income | 109,398 | 302,839 | ||||||||||
Net income attributable to noncontrolling interests | (87,888) | (286,325) | ||||||||||
Net (loss) income attributable to common stockholders | $ (968) | $ 12,904 | $ 5,178 | $ 4,396 | 21,510 | 16,514 | ||||||
Total assets | 2,922,691 | |||||||||||
Total liabilities | 897,247 | |||||||||||
Total equity | 2,025,444 | |||||||||||
Predecessor [Member] | Operating Segments [Member] | Owned Properties [Member] | ||||||||||||
Revenues | ||||||||||||
Rental income | 27,774 | 30,406 | ||||||||||
Tenant reimbursement income | 1,646 | 1,821 | ||||||||||
Total revenues | 29,420 | 32,227 | ||||||||||
Total expenses | 20,553 | 26,369 | ||||||||||
Operating income (loss) | 8,867 | 5,858 | ||||||||||
Income from unconsolidated joint ventures | 4,241 | 1,062 | ||||||||||
Interest and other income (loss), net | 2,004 | 5,891 | ||||||||||
Interest and debt expense | (11,157) | (12,443) | ||||||||||
Net income before income taxes | 3,955 | 368 | ||||||||||
Net income | 3,955 | 368 | ||||||||||
Net (loss) income attributable to common stockholders | 3,955 | 368 | ||||||||||
Total assets | 552,474 | |||||||||||
Total liabilities | 350,884 | |||||||||||
Total equity | 201,590 | |||||||||||
Predecessor [Member] | Operating Segments [Member] | Managed Funds [Member] | ||||||||||||
Revenues | ||||||||||||
Rental income | 2,434 | |||||||||||
Distributions from real estate fund investments | 17,083 | 29,184 | ||||||||||
Realized and unrealized gains, net | 129,354 | 332,053 | ||||||||||
Total revenues | 148,871 | 361,237 | ||||||||||
Total expenses | 27,995 | 29,417 | ||||||||||
Operating income (loss) | 120,876 | 331,820 | ||||||||||
Unrealized gain (loss) on interest rate swaps | (673) | 1,615 | ||||||||||
Interest and other income (loss), net | 388 | 1,152 | ||||||||||
Interest and debt expense | (17,323) | (17,219) | ||||||||||
Net income before income taxes | 103,268 | 317,368 | ||||||||||
Net income | 103,268 | 317,368 | ||||||||||
Net income attributable to noncontrolling interests | (87,888) | (286,325) | ||||||||||
Net (loss) income attributable to common stockholders | 15,380 | 31,043 | ||||||||||
Total assets | 2,329,153 | |||||||||||
Total liabilities | 508,481 | |||||||||||
Total equity | 1,820,672 | |||||||||||
Predecessor [Member] | Operating Segments [Member] | Management Company [Member] | ||||||||||||
Revenues | ||||||||||||
Fee and other income | 74,686 | 54,298 | ||||||||||
Total revenues | 74,686 | 54,298 | ||||||||||
Total expenses | 54,032 | 60,385 | ||||||||||
Operating income (loss) | 20,654 | (6,087) | ||||||||||
Income from unconsolidated joint ventures | 48,683 | 74,695 | ||||||||||
Interest and other income (loss), net | 87 | 2,364 | ||||||||||
Interest and debt expense | (105) | (145) | ||||||||||
Net income before income taxes | 69,319 | 70,827 | ||||||||||
Income tax expense | (18,461) | (11,029) | ||||||||||
Net income | 50,858 | 59,798 | ||||||||||
Net (loss) income attributable to common stockholders | 50,858 | 59,798 | ||||||||||
Total assets | 373,173 | |||||||||||
Total liabilities | 96,596 | |||||||||||
Total equity | 276,577 | |||||||||||
Predecessor [Member] | Eliminations [Member] | ||||||||||||
Revenues | ||||||||||||
Fee and other income | (25,588) | (27,872) | ||||||||||
Total revenues | (25,588) | (27,872) | ||||||||||
Total expenses | (25,588) | (27,872) | ||||||||||
Income from unconsolidated joint ventures | (48,683) | (74,695) | ||||||||||
Net income before income taxes | (48,683) | (74,695) | ||||||||||
Net income | (48,683) | (74,695) | ||||||||||
Net (loss) income attributable to common stockholders | $ (48,683) | (74,695) | ||||||||||
Total assets | (332,109) | |||||||||||
Total liabilities | (58,714) | |||||||||||
Total equity | $ (273,395) |
Schedule-II - Valuation and 122
Schedule-II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of year | $ 257 | $ 333 |
Additions Charged Against Operations | 76 | 87 |
Uncollectible accounts Written-off | (55) | |
Balance at End of Year | $ 333 | $ 365 |
Schedule III - Real Estate a123
Schedule III - Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Real Estate And Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 2,941,524 | |||
Initial cost to company, Land | 2,042,071 | |||
Initial cost to company, Building and Improvements | 5,442,199 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 167,847 | |||
Gross amount at which carried at close of period, Land | 2,042,071 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 5,610,046 | |||
Gross amount at which carried at close of period, Total | $ 7,652,117 | $ 7,530,239 | $ 414,998 | 7,652,117 |
Accumulated depreciation and amortization | (243,089) | (81,050) | (57,689) | (243,089) |
Costs capitalized subsequent to acquisition, Building and Improvements, other | (1,627) | |||
Gross amount at which carried at close of period, Buildings and Improvements, other | (1,627) | |||
Gross amount at which carried at close of period, other | (1,627) | |||
Accumulated depreciation and amortization, other | $ (36) | |||
Date acquired, other | Nov. 24, 2014 | |||
Rental Property | ||||
Balance at beginning of period | $ 7,530,239 | 414,998 | 414,855 | |
Acquisitions | 64,650 | |||
Acquisition of properties in connection with the Formation Transactions | 7,043,650 | |||
Buildings and improvements | 123,277 | 9,676 | 147 | |
Assets sold and written-off | (1,399) | (2,735) | (4) | |
Balance at end of period | 7,652,117 | 7,530,239 | 414,998 | |
Accumulated Depreciation | ||||
Balance at beginning of period | 81,050 | 57,689 | 48,425 | |
Additions charged to expense | 163,438 | 26,096 | 9,268 | |
Accumulated depreciation on assets sold and written-off | (1,399) | (2,735) | (4) | |
Balance at end of period | $ 243,089 | $ 81,050 | $ 57,689 | |
Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed, other | 5 years | |||
Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed, other | 40 years | |||
1633 Broadway [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Encumbrances | 1,013,544 | |||
Initial cost to company, Land | 502,846 | |||
Initial cost to company, Building and Improvements | 1,398,341 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 38,530 | |||
Gross amount at which carried at close of period, Land | 502,846 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 1,436,871 | |||
Gross amount at which carried at close of period, Total | $ 1,939,717 | 1,939,717 | ||
Accumulated depreciation and amortization | $ (43,602) | (43,602) | ||
Date of construction | Dec. 31, 1971 | |||
Date acquired | Nov. 24, 2014 | |||
Rental Property | ||||
Balance at end of period | $ 1,939,717 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 43,602 | |||
1633 Broadway [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
1633 Broadway [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years | |||
1301 Avenue of the Americas [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Initial cost to company, Land | 406,039 | |||
Initial cost to company, Building and Improvements | 1,051,697 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 15,433 | |||
Gross amount at which carried at close of period, Land | 406,039 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 1,067,130 | |||
Gross amount at which carried at close of period, Total | $ 1,473,169 | 1,473,169 | ||
Accumulated depreciation and amortization | $ (33,761) | (33,761) | ||
Date of construction | Dec. 31, 1963 | |||
Date acquired | Nov. 24, 2014 | |||
Rental Property | ||||
Balance at end of period | $ 1,473,169 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 33,761 | |||
1301 Avenue of the Americas [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
1301 Avenue of the Americas [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years | |||
31 West 52nd Street [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Encumbrances | 413,490 | |||
Initial cost to company, Land | 221,318 | |||
Initial cost to company, Building and Improvements | 604,994 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 3,468 | |||
Gross amount at which carried at close of period, Land | 221,318 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 608,462 | |||
Gross amount at which carried at close of period, Total | $ 829,780 | 829,780 | ||
Accumulated depreciation and amortization | $ (19,464) | (19,464) | ||
Date of construction | Dec. 31, 1987 | |||
Date acquired | Nov. 24, 2014 | |||
Rental Property | ||||
Balance at end of period | $ 829,780 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 19,464 | |||
31 West 52nd Street [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
31 West 52nd Street [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years | |||
1325 Avenue of the Americas [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Initial cost to company, Land | 174,688 | |||
Initial cost to company, Building and Improvements | 370,553 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 9,464 | |||
Gross amount at which carried at close of period, Land | 174,688 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 380,017 | |||
Gross amount at which carried at close of period, Total | $ 554,705 | 554,705 | ||
Accumulated depreciation and amortization | $ (12,820) | (12,820) | ||
Date of construction | Dec. 31, 1989 | |||
Date acquired | Nov. 24, 2014 | |||
Rental Property | ||||
Balance at end of period | $ 554,705 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 12,820 | |||
1325 Avenue of the Americas [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
1325 Avenue of the Americas [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years | |||
900 Third Avenue [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Encumbrances | 274,337 | |||
Initial cost to company, Land | 103,741 | |||
Initial cost to company, Building and Improvements | 296,031 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 3,117 | |||
Gross amount at which carried at close of period, Land | 103,741 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 299,148 | |||
Gross amount at which carried at close of period, Total | $ 402,889 | 402,889 | ||
Accumulated depreciation and amortization | $ (10,791) | (10,791) | ||
Date of construction | Dec. 31, 1983 | |||
Date acquired | Nov. 24, 2014 | |||
Rental Property | ||||
Balance at end of period | $ 402,889 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 10,791 | |||
900 Third Avenue [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
900 Third Avenue [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years | |||
Total New York | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Encumbrances | 1,701,371 | |||
Initial cost to company, Land | 1,408,632 | |||
Initial cost to company, Building and Improvements | 3,721,616 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 70,012 | |||
Gross amount at which carried at close of period, Land | 1,408,632 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 3,791,628 | |||
Gross amount at which carried at close of period, Total | $ 5,200,260 | 5,200,260 | ||
Accumulated depreciation and amortization | (120,438) | (120,438) | ||
Rental Property | ||||
Balance at end of period | 5,200,260 | |||
Accumulated Depreciation | ||||
Balance at end of period | 120,438 | |||
425 Eye Street [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Initial cost to company, Land | 93,669 | |||
Initial cost to company, Building and Improvements | 98,088 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 2,316 | |||
Gross amount at which carried at close of period, Land | 93,669 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 100,404 | |||
Gross amount at which carried at close of period, Total | 194,073 | 194,073 | ||
Accumulated depreciation and amortization | $ (73,284) | (73,284) | ||
Date of construction | Dec. 31, 1973 | |||
Date acquired | Nov. 24, 2014 | |||
Rental Property | ||||
Balance at end of period | $ 194,073 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 73,284 | |||
425 Eye Street [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
425 Eye Street [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years | |||
Liberty Place [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Encumbrances | 84,000 | |||
Initial cost to company, Land | 46,401 | |||
Initial cost to company, Building and Improvements | 96,422 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 9,571 | |||
Gross amount at which carried at close of period, Land | 46,401 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 105,993 | |||
Gross amount at which carried at close of period, Total | $ 152,394 | 152,394 | ||
Accumulated depreciation and amortization | $ (4,025) | (4,025) | ||
Date of construction | Dec. 31, 1993 | |||
Date acquired | Nov. 24, 2014 | |||
Rental Property | ||||
Balance at end of period | $ 152,394 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 4,025 | |||
Liberty Place [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
Liberty Place [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years | |||
1899 Pennsylvania Avenue [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Encumbrances | 89,116 | |||
Initial cost to company, Land | 52,568 | |||
Initial cost to company, Building and Improvements | 94,874 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 3,577 | |||
Gross amount at which carried at close of period, Land | 52,568 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 98,451 | |||
Gross amount at which carried at close of period, Total | $ 151,019 | 151,019 | ||
Accumulated depreciation and amortization | $ (3,318) | (3,318) | ||
Date of construction | Dec. 31, 1915 | |||
Date acquired | Nov. 24, 2014 | |||
Rental Property | ||||
Balance at end of period | $ 151,019 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 3,318 | |||
1899 Pennsylvania Avenue [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
1899 Pennsylvania Avenue [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years | |||
2099 Pennsylvania Avenue [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Initial cost to company, Land | 50,631 | |||
Initial cost to company, Building and Improvements | 103,992 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 9,994 | |||
Gross amount at which carried at close of period, Land | 50,631 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 113,986 | |||
Gross amount at which carried at close of period, Total | $ 164,617 | 164,617 | ||
Accumulated depreciation and amortization | $ (3,054) | (3,054) | ||
Date of construction | Dec. 31, 2001 | |||
Date acquired | Nov. 24, 2014 | |||
Rental Property | ||||
Balance at end of period | $ 164,617 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 3,054 | |||
2099 Pennsylvania Avenue [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
2099 Pennsylvania Avenue [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years | |||
Waterview [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Encumbrances | 210,000 | |||
Initial cost to company, Land | 78,300 | |||
Initial cost to company, Building and Improvements | 297,669 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 36,412 | |||
Gross amount at which carried at close of period, Land | 78,300 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 334,081 | |||
Gross amount at which carried at close of period, Total | $ 412,381 | 412,381 | ||
Accumulated depreciation and amortization | $ (3,579) | (3,579) | ||
Date of construction | Dec. 31, 2007 | |||
Date acquired | May 31, 2007 | |||
Rental Property | ||||
Balance at end of period | $ 412,381 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 3,579 | |||
Waterview [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
Waterview [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years | |||
Total Washington, D.C. | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Encumbrances | 383,116 | |||
Initial cost to company, Land | 321,569 | |||
Initial cost to company, Building and Improvements | 691,045 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 61,870 | |||
Gross amount at which carried at close of period, Land | 321,569 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 752,915 | |||
Gross amount at which carried at close of period, Total | $ 1,074,484 | 1,074,484 | ||
Accumulated depreciation and amortization | (87,260) | (87,260) | ||
Rental Property | ||||
Balance at end of period | 1,074,484 | |||
Accumulated Depreciation | ||||
Balance at end of period | 87,260 | |||
One Market Plaza [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Encumbrances | 857,037 | |||
Initial cost to company, Land | 288,744 | |||
Initial cost to company, Building and Improvements | 988,014 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 33,095 | |||
Gross amount at which carried at close of period, Land | 288,744 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 1,021,109 | |||
Gross amount at which carried at close of period, Total | 1,309,853 | 1,309,853 | ||
Accumulated depreciation and amortization | $ (33,494) | (33,494) | ||
Date of construction | Dec. 31, 1976 | |||
Date acquired | Nov. 24, 2014 | |||
Rental Property | ||||
Balance at end of period | $ 1,309,853 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 33,494 | |||
One Market Plaza [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
One Market Plaza [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years | |||
Total California | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Encumbrances | 857,037 | |||
Initial cost to company, Land | 288,744 | |||
Initial cost to company, Building and Improvements | 988,014 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 33,095 | |||
Gross amount at which carried at close of period, Land | 288,744 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 1,021,109 | |||
Gross amount at which carried at close of period, Total | $ 1,309,853 | 1,309,853 | ||
Accumulated depreciation and amortization | (33,494) | (33,494) | ||
Rental Property | ||||
Balance at end of period | 1,309,853 | |||
Accumulated Depreciation | ||||
Balance at end of period | 33,494 | |||
Residential Development Fund ("75 Howard") [Member] | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Initial cost to company, Land | 23,126 | |||
Initial cost to company, Building and Improvements | 41,524 | |||
Costs capitalized subsequent to acquisition, Building and Improvements | 4,497 | |||
Gross amount at which carried at close of period, Land | 23,126 | |||
Gross amount at which carried at close of period, Buildings and Improvements | 46,021 | |||
Gross amount at which carried at close of period, Total | 69,147 | 69,147 | ||
Accumulated depreciation and amortization | $ (1,861) | $ (1,861) | ||
Date acquired | Mar. 31, 2014 | |||
Rental Property | ||||
Balance at end of period | $ 69,147 | |||
Accumulated Depreciation | ||||
Balance at end of period | $ 1,861 | |||
Residential Development Fund ("75 Howard") [Member] | Minimum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 5 years | |||
Residential Development Fund ("75 Howard") [Member] | Maximum | ||||
Real Estate And Accumulated Depreciation [Line Items] | ||||
Life on which depreciation in latest income statement is computed | 40 years |
Schedule III - Real Estate a124
Schedule III - Real Estate and Accumulated Depreciation (Parenthetical) (Details) $ in Billions | Dec. 31, 2015USD ($) |
Real Estate And Accumulated Depreciation Disclosure [Abstract] | |
Assets and liabilities for tax purposes | $ 2.3 |