Quarterly report pursuant to Section 13 or 15(d)

Real Estate Joint Ventures

v3.19.3
Real Estate Joint Ventures
9 Months Ended
Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]  
Real Estate Joint Ventures Real Estate Joint Ventures

Consolidated Real Estate Joint Ventures

The table below sets forth information pertaining to our investments in consolidated real estate joint ventures as of September 30, 2019 (dollars in thousands):
 
 
 
 
 
 
 
 
September 30, 2019 (1)
 
 
Date Acquired
 
Nominal Ownership %
 
 
 
Total Assets
 
Encumbered Assets
 
Total Liabilities
Entity
 
 
 
Location
 
 
 
LW Redstone Company, LLC
 
3/23/2010
 
85%
 
Huntsville, Alabama
 
$
219,914

 
$
74,333

 
$
69,519

M Square Associates, LLC
 
6/26/2007
 
50%
 
College Park, Maryland
 
84,662

 
64,539

 
57,315

Stevens Investors, LLC
 
8/11/2015
 
95%
 
Washington, DC
 
111,994

 
111,467

 
42,464

 
 
 
 
 
 
 
 
$
416,570

 
$
250,339

 
$
169,298

(1)
Excludes amounts eliminated in consolidation.

Unconsolidated Real Estate Joint Ventures

The table below sets forth information pertaining to our investments in unconsolidated real estate joint ventures accounted for using the equity method of accounting (dollars in thousands):
 
 
Date Acquired
 
Nominal Ownership %
 
Number of Properties
 
Carrying Value of Investment (1)
Entity
 
 
 
 
September 30, 2019
 
December 31, 2018
GI-COPT DC Partnership LLC
 
7/21/2016
 
50%
 
6

 
$
38,273

 
$
39,845

BREIT COPT DC JV LLC
 
6/20/2019
 
10%
 
7

 
11,135

 

 
 
 
 
 
 
13

 
$
49,408

 
$
39,845

(1) Included in the line entitled “investment in unconsolidated real estate joint ventures” on our consolidated balance sheets.

These joint ventures operate triple-net leased, single-tenant data center shell properties in Virginia.

As described further in Note 4, on June 20, 2019, we sold a 90% interest in seven triple-net leased, single-tenant data center shell properties in Virginia and retained a 10% interest in the properties through BREIT-COPT, a newly-formed joint venture. We concluded that the joint venture is a variable interest entity. Under the terms of the joint venture agreement, we and our partner receive returns in proportion to our investments, and our maximum exposure to losses is limited to our investment, subject to certain indemnification obligations with respect to nonrecourse debt secured by the properties. The nature of our involvement in the activities of the joint venture does not give us power over decisions that significantly affect its economic performance.