COPT Defense Properties Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Real Estate Joint Ventures

Real Estate Joint Ventures

3 Months Ended

Mar. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Consolidated Joint Ventures

The table below sets forth information pertaining to our investments in consolidated real estate joint ventures as of March 31, 2017 (dollars in thousands):



		Nominal
		Ownership		March 31, 2017 (1)
	Date	% as of		Total		Encumbered		Total
	Acquired	3/31/2017	Nature of Activity	Assets		Assets		Liabilities
LW Redstone Company, LLC	3/23/2010	85%	Development and operation of real estate (2)	$	157,293	$	78,251	$	50,804
M Square Associates, LLC	6/26/2007	50%	Development and operation of real estate (3)	65,158		46,124		45,712
Stevens Investors, LLC	8/11/2015	95%	Development of real estate (4)	42,176		—		7,252
				$	264,627	$	124,375	$	103,768

(1) Excludes amounts eliminated in consolidation.

(2) This joint venture’s properties are in Huntsville, Alabama.

(3) This joint venture’s properties are in College Park, Maryland.

(4) This joint venture’s property is in Washington, DC. Our partner in this joint venture is entitled to receive an additional distribution from the joint venture of $6.7 million to be funded by us (expected by 2018) that was reported in other liabilities on our consolidated balance sheet as of March 31, 2017.

Unconsolidated Joint Venture

As of March 31, 2017, we owned a 50% interest in GI-COPT DC Partnership LLC (“GI-COPT”), a joint venture owning six triple-net leased, single-tenant data center properties in Virginia, that we account for using the equity method of accounting. As of March 31, 2017, we had an investment balance in GI-COPT of $25.4 million. Our balance was $17.8 million lower than our share of the joint venture’s equity due to a difference between our cost basis and our share of the underlying equity in the net assets upon formation of the joint venture; we are amortizing this basis difference into equity in income from unconsolidated entities over the lives of the underlying assets.