PARAMOUNT GROUP, INC., 10-Q filed on 11/1/2023
Quarterly Report
v3.23.3
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2023
Oct. 13, 2023
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2023  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
Entity Registrant Name PARAMOUNT GROUP, INC.  
Trading Symbol PGRE  
Title of 12(b) Security Common stock of Paramount Group, Inc.,$0.01 par value per shar  
Security Exchange Name NYSE  
Entity Central Index Key 0001605607  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Current Reporting Status Yes  
Entity Shell Company false  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity File Number 001-36746  
Entity Tax Identification Number 32-0439307  
Entity Address, Address Line One 1633 Broadway  
Entity Address, Address Line Two Suite 1801  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10019  
City Area Code 212  
Local Phone Number 237-3100  
Entity Incorporation, State or Country Code MD  
Document Quarterly Report true  
Document Transition Report false  
Entity Interactive Data Current Yes  
Entity Common Stock, Shares Outstanding   217,353,507
v3.23.3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Real estate, at cost:    
Land $ 1,966,237,000 $ 1,966,237,000
Buildings and improvements 6,217,633,000 6,177,540,000
Rental property, at cost 8,183,870,000 8,143,777,000
Accumulated depreciation and amortization (1,427,705,000) (1,297,553,000)
Real estate, net 6,756,165,000 6,846,224,000
Cash and cash equivalents 399,631,000 408,905,000
Restricted cash 70,892,000 40,912,000
Accounts and other receivables 14,340,000 23,866,000
Real estate related fund investments 68,225,000 105,369,000
Investments in unconsolidated real estate related funds 4,537,000 3,411,000
Investments in unconsolidated joint ventures 368,024,000 393,503,000
Deferred rent receivable 347,641,000 346,338,000
Deferred charges, net of accumulated amortization of $79,679 and $68,686 112,448,000 120,685,000
Intangible assets, net of accumulated amortization of $193,626 and $246,723 74,391,000 90,381,000
Other assets 72,265,000 73,660,000
Total assets [1] 8,288,559,000 8,453,254,000
Liabilities and Equity    
Notes and mortgages payable, net of unamortized deferred financing costs of $14,717 and $17,682 3,802,333,000 3,840,318,000
Revolving credit facility 0 0
Accounts payable and accrued expenses 109,471,000 123,176,000
Dividends and distributions payable 8,357,000 18,026,000
Intangible liabilities, net of accumulated amortization of $106,839 and $102,533 29,981,000 36,193,000
Other liabilities 28,452,000 24,775,000
Total liabilities [1] 3,978,594,000 4,042,488,000
Commitments and contingencies
Paramount Group, Inc. equity:    
Common stock $0.01 par value per share; authorized 900,000,000 shares; issued and outstanding 217,353,507 and 216,559,406 shares in 2023 and 2022, respectively 2,172,000 2,165,000
Additional paid-in-capital 4,128,492,000 4,186,161,000
Earnings less than distributions (730,777,000) (644,331,000)
Accumulated other comprehensive income 29,325,000 48,296,000
Paramount Group, Inc. equity 3,429,212,000 3,592,291,000
Noncontrolling interests in:    
Consolidated joint ventures 410,944,000 402,118,000
Consolidated real estate related funds 162,973,000 173,375,000
Operating Partnership (19,429,601 and 14,586,411 units outstanding) 306,836,000 242,982,000
Total equity 4,309,965,000 4,410,766,000
Total liabilities and equity $ 8,288,559,000 $ 8,453,254,000
[1] Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 91.8% as of September 30, 2023. As of September 30, 2023, the assets and liabilities of the Operating Partnership include $3,933,437 and $2,525,808 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities (“VIEs”).
v3.23.3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Deferred charges, accumulated amortization $ 79,679 $ 68,686
Intangible assets, accumulated amortization 193,626 246,723
Notes and mortgages payable, deferred financing costs 14,717 17,682
Intangible liabilities, accumulated amortization $ 106,839 $ 102,533
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 900,000,000 900,000,000
Common stock, shares issued 217,353,507 216,559,406
Common stock, shares outstanding 217,353,507 216,559,406
Operating partnership, units outstanding 19,429,601 14,586,411
Total assets [1] $ 8,288,559 $ 8,453,254
Total liabilities [1] 3,978,594 4,042,488
Variable Interest Entities [Member]    
Total assets 3,933,437 4,013,461
Total liabilities $ 2,525,808 $ 2,579,381
Variable Interest Entities [Member] | Paramount Group Operating Partnership [Member]    
Percentage of ownership in operating partnership 91.80%  
[1] Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 91.8% as of September 30, 2023. As of September 30, 2023, the assets and liabilities of the Operating Partnership include $3,933,437 and $2,525,808 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities (“VIEs”).
v3.23.3
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenues:        
Rental revenue $ 182,515,000 $ 179,250,000 $ 529,734,000 $ 526,415,000
Fee and other income 6,666,000 7,897,000 20,583,000 29,934,000
Total revenues 189,181,000 187,147,000 550,317,000 556,349,000
Expenses:        
Operating 75,502,000 72,845,000 216,889,000 207,320,000
Depreciation and amortization 60,263,000 58,284,000 181,778,000 171,306,000
General and administrative 15,460,000 13,150,000 46,307,000 45,501,000
Transaction related costs 132,000 105,000 323,000 381,000
Total expenses 151,357,000 144,384,000 445,297,000 424,508,000
Other income (expense):        
Income (loss) from real estate related fund investments 2,060,000 0 (37,034,000) 0
(Loss) income from unconsolidated real estate related funds (721,000) 300,000 (867,000) 625,000
Loss from unconsolidated joint ventures (28,974,000) (5,797,000) (63,138,000) (15,326,000)
Interest and other income, net 4,115,000 1,580,000 10,007,000 2,607,000
Interest and debt expense (39,102,000) (36,949,000) (112,440,000) (106,804,000)
(Loss) income before income taxes (24,798,000) 1,897,000 (98,452,000) 12,943,000
Income tax expense (263,000) (673,000) (1,124,000) (1,559,000)
Net (loss) income (25,061,000) 1,224,000 (99,576,000) 11,384,000
Less net (income) loss attributable to noncontrolling interests in:        
Consolidated joint ventures (4,887,000) (4,179,000) (15,879,000) (12,383,000)
Consolidated real estate related funds 20,934,000 1,309,000 57,412,000 2,677,000
Operating Partnership 629,000 109,000 3,849,000 (204,000)
Net (loss) income attributable to common stockholders $ (8,385,000) $ (1,537,000) $ (54,194,000) $ 1,474,000
(Loss) Income per Common Share - Basic:        
(Loss) income per common share $ (0.04) $ (0.01) $ (0.25) $ 0.01
Weighted average shares outstanding 217,043,022 224,864,791 216,871,778 222,228,605
(Loss) Income per Common Share - Diluted:        
(Loss) income per common share $ (0.04) $ (0.01) $ (0.25) $ 0.01
Weighted average shares outstanding 217,043,022 224,864,791 216,871,778 222,262,748
v3.23.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net (loss) income $ (25,061) $ 1,224 $ (99,576) $ 11,384
Other comprehensive (loss) income:        
Change in value of interest rate swaps and interest rate caps (6,105) 9,796 (17,630) 34,450
Pro rata share of other comprehensive (loss) income of unconsolidated joint ventures (1,534) 5,707 (2,703) 19,109
Comprehensive (loss) income (32,700) 16,727 (119,909) 64,943
Less comprehensive (income) loss attributable to noncontrolling interests in:        
Consolidated joint ventures (4,887) (4,179) (15,879) (12,383)
Consolidated real estate related funds 20,934 1,309 57,412 2,677
Operating Partnership 1,162 (914) 5,211 (4,581)
Comprehensive (loss) income attributable to common stockholders $ (15,491) $ 12,943 $ (73,165) $ 50,656
v3.23.3
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid in Capital [Member]
Earnings Less than Distributions [Member]
Accumulated Other Comprehensive Income [Member]
Noncontrolling Interest [Member]
Consolidated Joint Ventures [Member]
Noncontrolling Interest [Member]
Consolidated Real Estate Related Funds [Member]
Noncontrolling Interest [Member]
Operating Partnership [Member]
Beginning balance at Dec. 31, 2021 $ 4,455,032 $ 2,190 $ 4,122,680 $ (538,845) $ 2,138 $ 428,833 $ 81,925 $ 356,111
Common stock, shares outstanding at Dec. 31, 2021   218,992,000            
Net (loss) income 11,384     1,474   12,383 (2,677) 204
Common shares issued upon redemption of common units   $ 66 108,418         (108,484)
Common shares issued upon redemption of common units, shares   6,607,000            
Common shares issued under Omnibus share plan, net of shares withheld for taxes (284)     (284)        
Common shares issued under Omnibus share plan, net of shares withheld for taxes, shares   99,000            
Repurchases of common shares (21,313) $ (32) (21,281)          
Repurchases of common shares, shares   (3,237,000)            
Dividends and distributions (56,128)     (51,733)       (4,395)
Distributions to noncontrolling interests (33,814)         (33,814)    
Change in value of interest rate swaps and interest rate caps 34,450       31,635     2,815
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures 19,109       17,547     1,562
Amortization of equity awards 14,992   970         14,022
Reallocation of noncontrolling interest     (345)         345
Other (235)     (235)        
Ending balance at Sep. 30, 2022 4,423,193 $ 2,224 4,210,442 (589,623) 51,320 407,402 79,248 262,180
Common stock, shares outstanding at Sep. 30, 2022   222,461,000            
Beginning balance at Jun. 30, 2022 4,451,354 $ 2,255 4,228,674 (570,577) 36,840 412,189 80,557 261,416
Common stock, shares outstanding at Jun. 30, 2022   225,625,000            
Net (loss) income 1,224     (1,537)   4,179 (1,309) (109)
Common shares issued upon redemption of common units   $ 1 1,271         (1,272)
Common shares issued upon redemption of common units, shares   77,000            
Common shares issued under Omnibus share plan, net of shares withheld for taxes (4)     (4)        
Common shares issued under Omnibus share plan, net of shares withheld for taxes, shares   (4,000)            
Repurchases of common shares (21,313) $ (32) (21,281)          
Repurchases of common shares, shares   (3,237,000)            
Dividends and distributions (18,564)     (17,270)       (1,294)
Distributions to noncontrolling interests (8,966)         (8,966)    
Change in value of interest rate swaps and interest rate caps 9,796       9,150     646
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures 5,707       5,330     377
Amortization of equity awards 4,194   331         3,863
Reallocation of noncontrolling interest     1,447         (1,447)
Other (235)     (235)        
Ending balance at Sep. 30, 2022 4,423,193 $ 2,224 4,210,442 (589,623) 51,320 407,402 79,248 262,180
Common stock, shares outstanding at Sep. 30, 2022   222,461,000            
Beginning balance at Dec. 31, 2022 $ 4,410,766 $ 2,165 4,186,161 (644,331) 48,296 402,118 173,375 242,982
Common stock, shares outstanding at Dec. 31, 2022 216,559,406 216,559,000            
Net (loss) income $ (99,576)     (54,194)   15,879 (57,412) (3,849)
Common shares issued upon redemption of common units   $ 7 11,663         (11,670)
Common shares issued upon redemption of common units, shares   703,000            
Common shares issued under Omnibus share plan, net of shares withheld for taxes (205)     (205)        
Common shares issued under Omnibus share plan, net of shares withheld for taxes, shares   92,000            
Dividends and distributions (34,655)     (32,047)       (2,608)
Contributions from noncontrolling interests 54,812           54,812  
Distributions to noncontrolling interests (14,855)         (7,053) (7,802)  
Change in value of interest rate swaps and interest rate caps (17,630)       (16,450)     (1,180)
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures (2,703)       (2,521)     (182)
Amortization of equity awards 14,011   923         13,088
Reallocation of noncontrolling interest     (70,255)         70,255
Ending balance at Sep. 30, 2023 $ 4,309,965 $ 2,172 4,128,492 (730,777) 29,325 410,944 162,973 306,836
Common stock, shares outstanding at Sep. 30, 2023 217,353,507 217,354,000            
Beginning balance at Jun. 30, 2023 $ 4,348,013 $ 2,172 4,183,662 (714,785) 36,431 407,647 183,988 248,898
Common stock, shares outstanding at Jun. 30, 2023   217,306,000            
Net (loss) income (25,061)     (8,385)   4,887 (20,934) (629)
Common shares issued upon redemption of common units     793         (793)
Common shares issued upon redemption of common units, shares   50,000            
Common shares issued under Omnibus share plan, net of shares withheld for taxes, shares   (2,000)            
Dividends and distributions (8,357)     (7,607)       (750)
Contributions from noncontrolling interests 1,458           1,458  
Distributions to noncontrolling interests (3,129)         (1,590) (1,539)  
Change in value of interest rate swaps and interest rate caps (6,105)       (5,679)     (426)
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures (1,534)       (1,427)     (107)
Amortization of equity awards 4,680   299         4,381
Reallocation of noncontrolling interest     (56,262)         56,262
Ending balance at Sep. 30, 2023 $ 4,309,965 $ 2,172 $ 4,128,492 $ (730,777) $ 29,325 $ 410,944 $ 162,973 $ 306,836
Common stock, shares outstanding at Sep. 30, 2023 217,353,507 217,354,000            
v3.23.3
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Parentheticals) - $ / shares
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]        
Dividends and distributions, Per share and unit $ 0.035 $ 0.0775 $ 0.1475 $ 0.2325
v3.23.3
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash Flows from Operating Activities:    
Net (loss) income $ (99,576,000) $ 11,384,000
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Depreciation and amortization 181,778,000 171,306,000
Straight-lining of rental revenue (1,305,000) (7,808,000)
Amortization of stock-based compensation expense 14,011,000 14,853,000
Amortization of deferred financing costs 4,630,000 4,614,000
Loss from unconsolidated joint ventures 63,138,000 15,326,000
Distributions of earnings from unconsolidated joint ventures 354,000 34,000
Realized and unrealized losses on real estate related fund investments 46,775,000  
Loss (income) from unconsolidated real estate related funds 867,000 (625,000)
Distributions of earnings from unconsolidated real estate related funds 84,000 624,000
Amortization of above and below-market leases, net (3,929,000) (589,000)
Other non-cash adjustments 526,000 1,084,000
Changes in operating assets and liabilities:    
Real estate related fund investments (9,631,000)  
Accounts and other receivables 9,526,000 (4,283,000)
Deferred charges (5,874,000) (12,286,000)
Other assets (19,734,000) (21,764,000)
Accounts payable and accrued expenses (9,738,000) 4,646,000
Other liabilities 3,695,000 (2,099,000)
Net cash provided by operating activities 175,597,000 174,417,000
Cash Flows from Investing Activities:    
Additions to real estate (67,373,000) (71,284,000)
Investments in and contributions of capital to unconsolidated joint ventures (40,715,000) (11,252,000)
Advances to a partner in One Steuart Lane (35,715,000)  
Repayment of advances by a partner in One Steuart Lane 38,935,000  
Contributions of capital to unconsolidated real estate related funds (2,077,000) (4,642,000)
Due from affiliates   (59,000,000)
Repayment of amounts due from affiliates   59,000,000
Distributions of capital from unconsolidated real estate related funds   1,506,000
Net cash used in investing activities (106,945,000) (85,672,000)
Cash Flows from Financing Activities:    
Repayment of notes and mortgages payable (273,000,000)  
Proceeds from notes and mortgages payable 232,050,000  
Contributions from noncontrolling interests in consolidated real estate related funds 54,812,000  
Distributions to noncontrolling interests in consolidated real estate related funds (7,802,000)  
Dividends paid to common stockholders (41,267,000) (49,793,000)
Distributions paid to common unitholders (3,058,000) (4,666,000)
Distributions to noncontrolling interests in consolidated joint ventures (7,053,000) (33,814,000)
Settlement of accounts payable in connection with repurchases of common shares (1,847,000)  
Debt issuance costs (576,000)  
Repurchases of common shares   (20,000,000)
Repurchase of shares related to stock compensation agreements and related tax withholdings (205,000) (284,000)
Net cash provided by financing activities (47,946,000) (108,557,000)
Net increase (decrease) in cash and cash equivalents and restricted cash 20,706,000 (19,812,000)
Cash and cash equivalents and restricted cash at beginning of period 449,817,000 529,666,000
Cash and cash equivalents and restricted cash at end of period 470,523,000 509,854,000
Reconciliation of Cash and Cash Equivalents and Restricted Cash:    
Cash and cash equivalents at beginning of period 408,905,000 524,900,000
Restricted cash at beginning of period 40,912,000 4,766,000
Cash and cash equivalents and restricted cash at beginning of period 449,817,000 529,666,000
Cash and cash equivalents at end of period 399,631,000 469,398,000
Restricted cash at end of period 70,892,000 40,456,000
Cash and cash equivalents and restricted cash at end of period 470,523,000 509,854,000
Supplemental Disclosure of Cash Flow Information:    
Cash payments for interest 106,633,000 102,534,000
Cash payments for income taxes, net of refunds 723,000 2,177,000
Non-Cash Transactions:    
Common shares issued upon redemption of common units 11,670,000 108,484,000
Dividends and distributions declared but not yet paid 8,357,000 18,564,000
Change in value of interest rate swaps and interest rate caps (17,630,000) 34,450,000
Write-off of fully amortized and/or depreciated assets 22,274,000 8,736,000
Additions to real estate included in accounts payable and accrued expenses $ 10,165,000 42,052,000
Transfer of deposit to investment in unconsolidated joint ventures   6,230,000
Repurchases of common shares included in accounts payable and accrued expenses   $ 1,313,000
v3.23.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Pay vs Performance Disclosure        
Net Income (Loss) $ (8,385) $ (1,537) $ (54,194) $ 1,474
v3.23.3
Insider Trading Arrangements
 9 Months Ended
Sep. 30, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.3
Organization and Business
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization And Business
1.
Organization and Business

 

 

As used in these consolidated financial statements, unless otherwise indicated, all references to “we,” “us,” “our,” the “Company,” and “Paramount” refer to Paramount Group, Inc., a Maryland corporation, and its consolidated subsidiaries, including Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). 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 and San Francisco. We conduct our business through, and substantially all of our interests in properties and investments are held by, the Operating Partnership. We are the sole general partner of, and owned approximately 91.8% of, the Operating Partnership as of September 30, 2023.

 

As of September 30, 2023, we owned and/or managed a portfolio of 18 properties aggregating 13.8 million square feet comprised of:

•
Eight wholly and partially owned Class A properties aggregating 8.7 million square feet in New York, comprised of 8.2 million square feet of office space and 0.5 million square feet of retail, theater and amenity space;
•
Six wholly and partially owned Class A properties aggregating 4.3 million square feet in San Francisco, comprised of 4.1 million square feet of office space and 0.2 million square feet of retail space; and
•
Four managed properties aggregating 0.8 million square feet in New York and Washington, D.C.

Additionally, we have an investment management business, where we serve as the general partner of several real estate related funds for institutional investors and high net-worth individuals.
v3.23.3
Basis of Presentation and Significant Accounting Policies
 9 Months Ended
Sep. 30, 2023
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 financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conjunction with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted. These consolidated financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. In the opinion of management, all significant adjustments (which include only normal recurring adjustments) and eliminations (which include intercompany balances and transactions) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. The consolidated balance sheet as of December 31, 2022 was derived from audited financial statements as of that date but does not include all information and disclosures required by GAAP. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC.

 

 

Significant Accounting Policies

There are no material changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.

 

 

 

 

Use of Estimates

 

We have made 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 materially from those estimates. The results of operations for the three and nine months ended September 30, 2023, are not necessarily indicative of the operating results for the full year.

 

 

Recently Issued Accounting Pronouncements

 

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, which adds Accounting Standards Codification (“ASC”) Topic 848, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides temporary optional expedients and exceptions to ease financial reporting burdens related to applying current GAAP to modifications of contracts, hedging relationships and other transactions in connection with the transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. ASU 2020-04 was effective beginning March 12, 2020 to December 31, 2022. In January 2021, the FASB issued ASU 2021-01 to clarify that certain optional expedients and exceptions apply to modifications of derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements, and for calculating price alignment interest. ASU 2021-01 was effective beginning January 7, 2021 to December 31, 2022. In December 2022, the FASB issued ASU 2022-06 to extend the effectiveness date of ASU 2020-04 and ASU 2021-01 from December 31, 2022 to December 31, 2024. In June 2023, we entered into loan modifications in connection with the transition from LIBOR to Secured Overnight Financing Rate (“SOFR”) for our variable rate loans and we applied the practical expedient to all such modifications.

 

In August 2023, the FASB issued ASU 2023-05, an update to ASC Topic 805, Business Combinations. ASU 2023-05 clarifies existing guidance by requiring a joint venture to recognize and initially measure assets contributed and liabilities assumed at fair value, upon its formation. These amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, with early adoption permitted. We will apply the provisions of ASU 2023-05 to new joint ventures, as applicable, but do not believe the adoption of ASU 2023-05 will have a material impact on our consolidated financial statements.
v3.23.3
Consolidated Real Estate Related Funds
 9 Months Ended
Sep. 30, 2023
Consolidated Real Estate Fund [Abstract]  
Consolidated Real Estate Related Funds
3.
Consolidated Real Estate Related Funds

 

Real Estate Related Fund Investments (Fund X)

 

Real estate related fund investments on our consolidated balance sheets represent the investments of Paramount Group Real Estate Fund X, LP (“Fund X”), which invests in mezzanine loans. We are the general partner and investment manager of Fund X, which, prior to December 12, 2022, was accounted for under the equity method of accounting (see Note 4, Investments in Unconsolidated Real Estate Related Funds). Subsequent to December 12, 2022, we increased our ownership interest in Fund X to 13.0% and began consolidating Fund X into our consolidated financial statements.

 

The following table sets forth the details of income or loss from real estate related fund investments for the three and nine months ended September 30, 2023.

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

(Amounts in thousands)

September 30, 2023

 

 

September 30, 2023

 

 

Net investment income

$

2,032

 

 

$

9,741

 

 

Net realized losses

 

-

 

 

 

(1,224

)

 

Net unrealized gains (losses)

 

28

 

 

 

(45,551

)

(1)

Income (loss) from real estate related fund
   investments

 

2,060

 

 

 

(37,034

)

 

Less: noncontrolling interests in consolidated
   real estate related funds

 

(1,517

)

 

 

33,056

 

 

Income (loss) from real estate related fund
   investments attributable to Paramount
   Group, Inc.

$

543

 

 

$

(3,978

)

 

 

 

(1)
Primarily represents an unrealized loss on a mezzanine loan investment based on a negotiated transaction price.

 

 

Residential Development Fund (“RDF”)

 

We are also the general partner of RDF in which we own a 7.4% interest. RDF owns a 35.0% interest in One Steuart Lane, a for-sale residential condominium project, in San Francisco, California. We consolidate the financial results of RDF into our consolidated financial statements and reflect the 92.6% interest that we do not own as noncontrolling interests in consolidated real estate related funds. RDF accounts for its 35.0% interest in One Steuart Lane under the equity method of accounting. Accordingly, our economic interest in One Steuart Lane (based on our 7.4% ownership interest in RDF) is 2.6%. See Note 5, Investments in Unconsolidated Joint Ventures.


 
v3.23.3
Investments in Unconsolidated Real Estate Related Funds
 9 Months Ended
Sep. 30, 2023
Real Estate Fund [Abstract]  
Investments in Unconsolidated Real Estate Related Funds
4.
Investments in Unconsolidated Real Estate Related Funds

 

We are the general partner and investment manager of Paramount Group Real Estate Fund VIII, LP (“Fund VIII”) which invests in real estate and related investments. As of September 30, 2023, our ownership interest in Fund VIII was approximately 1.3%. We account for our investment in Fund VIII under the equity method of accounting.

 

Prior to December 12, 2022, we owned an 8.2% interest in Fund X and accounted for our investment in Fund X under the equity method of accounting. Subsequent to December 12, 2022, we began consolidating Fund X into our consolidated financial statements (see Note 3, Consolidated Real Estate Related Funds).

 

As of September 30, 2023 and December 31, 2022, our share of the investments in the unconsolidated real estate related funds was $4,537,000 and $3,411,000, respectively, which is reflected as “investments in unconsolidated real estate related funds” on our consolidated balance sheets. We recognized a loss of $721,000 and $867,000 during the three and nine months ended September 30, 2023, respectively, and income of $300,000 and $625,000 during the three and nine months ended September 30, 2022, respectively, for our share of earnings, which is reflected as “(loss) income from unconsolidated real estate related funds” on our consolidated statements of income.
v3.23.3
Investments in Unconsolidated Joint Ventures
 9 Months Ended
Sep. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Joint Ventures
5.
Investments in Unconsolidated Joint Ventures

 

 

The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below.

 

(Amounts in thousands)

 

Paramount

 

As of

 

Our Share of Investments:

 

Ownership

 

September 30, 2023

 

 

December 31, 2022

 

712 Fifth Avenue (1)

 

50.0%

 

$

-

 

 

$

-

 

Market Center

 

67.0%

 

 

181,437

 

 

 

192,948

 

55 Second Street (2)

 

44.1%

 

 

83,560

 

 

 

85,340

 

111 Sutter Street (3)

 

49.0%

 

 

-

 

 

 

-

 

1600 Broadway (2)

 

9.2%

 

 

8,762

 

 

 

9,113

 

60 Wall Street

 

5.0%

 

 

-

 

(4)

 

25,034

 

One Steuart Lane (2)

 

35.0% (5)

 

 

90,865

 

 

 

77,961

 

Oder-Center, Germany (2)

 

9.5%

 

 

3,400

 

 

 

3,107

 

Investments in unconsolidated joint ventures

 

$

368,024

 

 

$

393,503

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

(Amounts in thousands)

September 30,

 

 

September 30,

 

Our Share of Net Income (Loss):

2023

 

 

2022

 

 

2023

 

 

2022

 

712 Fifth Avenue (1)

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Market Center

 

(3,248

)

 

 

(2,811

)

 

 

(8,482

)

 

 

(7,661

)

55 Second Street (2)

 

(642

)

 

 

(825

)

 

 

(1,780

)

 

 

(2,296

)

111 Sutter Street (3)

 

-

 

 

 

(748

)

 

 

-

 

 

 

(2,207

)

1600 Broadway (2)

 

1

 

 

 

30

 

 

 

1

 

 

 

(38

)

60 Wall Street

 

-

 

(4)

 

(23

)

 

 

(25,001

)

(4)

 

42

 

One Steuart Lane (2)

 

(25,037

)

(6)

 

(1,516

)

 

 

(27,811

)

(6)

 

(3,303

)

Oder-Center, Germany (2)

 

(48

)

 

 

96

 

 

 

(65

)

 

 

137

 

Loss from unconsolidated joint ventures

$

(28,974

)

 

$

(5,797

)

 

$

(63,138

)

 

$

(15,326

)

 

(1)
At December 31, 2022, our basis in the joint venture that owns 712 Fifth Avenue was negative $13,427. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. For the nine months ended September 30, 2023, the joint venture had net income of $3,313 of which our 50.0% share was $1,657. Accordingly, our basis in the joint venture, taking into account our share of income, was negative $11,770 as of September 30, 2023.
(2)
As of September 30, 2023, the carrying amount of our investments in 55 Second Street, 1600 Broadway, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $463, $307, $640 and $4,215, respectively, and primarily represents the unamortized portion of our capitalized acquisition costs.
(3)
At December 31, 2022, our basis in the joint venture that owns 111 Sutter Street was negative $107. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. For the nine months ended September 30, 2023, the joint venture had net loss of $11,862 of which our 49.0% share was $5,813. Accordingly, our basis in the joint venture, taking into account our share of loss, was negative $5,920 as of September 30, 2023.
(4)
In May 2023, the joint venture that owns 60 Wall Street defaulted on the $575,000 non-recourse mortgage loan securing the property. The joint venture is currently in negotiations with the lender to modify the loan. Additionally, in the second quarter of 2023, the joint venture recognized a $455,893 real estate impairment loss. Accordingly, we recognized a $24,734 impairment loss on our investment in 60 Wall Street. This impairment, together with our share of operating losses recognized in the second quarter, reduced our investment balance to negative $668 as of June 30, 2023. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. For the three months ended September 30, 2023, the joint venture had net loss of $7,661 of which our 5.0% share was $383. Accordingly, our basis in the joint venture, taking into account our share of loss, was negative $1,051 as of September 30, 2023.
(5)
Represents RDF’s economic interest in One Steuart Lane, a for-sale residential condominium project. Our economic interest in One Steuart Lane (based on our 7.4% ownership interest in RDF) is 2.6%.
(6)
In the third quarter of 2023, One Steuart Lane recognized a $68,407 impairment loss related to residential condominium units and accordingly, RDF recognized a $23,942 impairment loss on its 35.0% investment in One Steuart Lane.

 

 

 

The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates thereof and for the periods set forth below.

 

 

(Amounts in thousands)

As of

 

Balance Sheets:

September 30, 2023

 

 

December 31, 2022

 

Real estate, net

$

1,974,734

 

 

$

2,377,084

 

Cash and cash equivalents and restricted cash

 

208,778

 

 

 

252,540

 

Intangible assets, net

 

55,295

 

 

 

69,599

 

For-sale residential condominium units (1)

 

250,000

 

 

 

322,232

 

Other assets

 

84,647

 

 

 

87,054

 

Total assets

$

2,573,454

 

 

$

3,108,509

 

 

 

 

 

 

 

Notes and mortgages payable, net

$

1,740,516

 

 

$

1,834,916

 

Intangible liabilities, net

 

6,184

 

 

 

10,972

 

Other liabilities

 

81,698

 

 

 

50,783

 

Total liabilities

 

1,828,398

 

 

 

1,896,671

 

Equity

 

745,056

 

 

 

1,211,838

 

Total liabilities and equity

$

2,573,454

 

 

$

3,108,509

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

(Amounts in thousands)

September 30,

 

 

September 30,

 

 

Income Statements:

2023

 

 

2022

 

 

2023

 

 

2022

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

$

38,629

 

 

$

41,145

 

 

$

119,235

 

 

$

153,181

 

 

Other income (2)

 

874

 

 

 

15,250

 

 

 

6,492

 

 

 

65,276

 

 

Total revenues

 

39,503

 

 

 

56,395

 

 

 

125,727

 

 

 

218,457

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Operating (2)

 

23,941

 

 

 

34,234

 

 

 

73,632

 

 

 

129,035

 

 

Depreciation and amortization

 

16,863

 

 

 

17,734

 

 

 

52,341

 

 

 

68,140

 

 

Total expenses

 

40,804

 

 

 

51,968

 

 

 

125,973

 

 

 

197,175

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

734

 

 

 

471

 

 

 

2,226

 

 

 

487

 

 

Interest and debt expense

 

(19,895

)

 

 

(13,967

)

 

 

(53,256

)

 

 

(47,900

)

 

Impairment loss (3)

 

(68,407

)

 

 

-

 

 

 

(524,300

)

 

 

-

 

 

Loss before income taxes

 

(88,869

)

 

 

(9,069

)

 

 

(575,576

)

 

 

(26,131

)

 

Income tax expense

 

(2

)

 

 

(11

)

 

 

(32

)

 

 

(54

)

 

Net loss

$

(88,871

)

 

$

(9,080

)

 

$

(575,608

)

 

$

(26,185

)

 

 

 

(1)
Represents residential condominium units at One Steuart Lane that are available for sale.
(2)
Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.
(3)
Includes an impairment loss related to condominium units at One Steuart Lane in the three and nine months ended September 30, 2023 and a real estate impairment loss related to 60 Wall Street in the nine months ended September 30, 2023. See notes 4 and 6 on page 13.
v3.23.3
Intangible Assets and Liabilities
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Liabilities
6.
Intangible Assets and Liabilities

 

 

The following tables summarize our intangible assets (acquired above-market leases and acquired in-place leases) and intangible liabilities (acquired below-market leases) and the related amortization as of the dates thereof and for the periods set forth below.

 

As of

 

(Amounts in thousands)

September 30, 2023

 

 

December 31, 2022

 

Intangible assets:

 

 

 

 

 

Gross amount

$

268,017

 

 

$

337,104

 

Accumulated amortization

 

(193,626

)

 

 

(246,723

)

 

$

74,391

 

 

$

90,381

 

Intangible liabilities:

 

 

 

 

 

Gross amount

$

136,820

 

 

$

138,726

 

Accumulated amortization

 

(106,839

)

 

 

(102,533

)

 

$

29,981

 

 

$

36,193

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

(Amounts in thousands)

2023

 

 

2022

 

 

2023

 

 

2022

 

Amortization of above and below-market leases, net
   (component of "rental revenue")

$

1,445

 

 

$

(84

)

 

$

3,929

 

 

$

589

 

Amortization of acquired in-place leases
   (component of "depreciation and amortization")

 

4,635

 

 

 

5,401

 

 

 

13,706

 

 

 

16,344

 

 

 

The following table sets forth amortization of acquired above and below-market leases, net and amortization of acquired in-place leases for the three-month period from October 1, 2023 through December 31, 2023, and each of the five succeeding years commencing from January 1, 2024.

 

(Amounts in thousands)

 

Above and
Below-Market Leases, Net

 

 

In-Place Leases

 

2023

 

$

1,446

 

 

$

4,632

 

2024

 

 

5,862

 

 

 

14,915

 

2025

 

 

4,541

 

 

 

10,394

 

2026

 

 

2,711

 

 

 

7,785

 

2027

 

 

2,398

 

 

 

7,140

 

2028

 

 

2,318

 

 

 

6,868

 
v3.23.3
Debt
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Debt
7.
Debt

 

On September 27, 2023, a joint venture in which we have a 31.1% interest, completed a $232,050,000 refinancing of 300 Mission Street, a 655,000 square foot Class A office building in San Francisco. The interest-only loan bears a fixed rate of 4.50% and matures in October 2026. The loan replaces the previous $273,000,000 loan that bore interest at 3.65% and was scheduled to mature in October 2023.

 

The following table summarizes our consolidated outstanding debt.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate

 

 

 

 

 

Maturity

 

Fixed/

 

as of

 

 

As of

 

(Amounts in thousands)

Date

 

Variable Rate

 

September 30, 2023

 

 

September 30, 2023

 

 

December 31, 2022

 

Notes and mortgages payable:

 

 

 

 

 

 

 

 

 

 

 

1633 Broadway (1)

Dec-2029

 

Fixed

 

 

2.99

%

 

$

1,250,000

 

 

$

1,250,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One Market Plaza (1)

Feb-2024 (2)

 

Fixed

 

 

4.03

%

 

 

975,000

 

 

 

975,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1301 Avenue of the Americas

 

 

 

 

 

 

 

 

 

 

 

 

Aug-2026

 

Fixed (3)

 

 

2.49

%

 

 

500,000

 

 

 

500,000

 

 

Aug-2026

 

SOFR + 368 bps (4)

 

 

8.18

%

 

 

360,000

 

 

 

360,000

 

 

 

 

 

 

 

4.87

%

 

 

860,000

 

 

 

860,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 West 52nd Street

Jun-2026

 

Fixed

 

 

3.80

%

 

 

500,000

 

 

 

500,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

300 Mission Street (1)

Oct-2026

 

Fixed

 

 

4.50

%

 

 

232,050

 

 

 

273,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total notes and mortgages payable

 

 

3.88

%

 

 

3,817,050

 

 

 

3,858,000

 

Less: unamortized deferred financing costs

 

 

 

 

 

(14,717

)

 

 

(17,682

)

Total notes and mortgages payable, net

 

 

 

 

$

3,802,333

 

 

$

3,840,318

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$750 Million Revolving
   Credit Facility

Mar-2026

 

SOFR + 115 bps

n/a

 

 

$

-

 

 

$

-

 

 

 

(1)
Our ownership interests in 1633 Broadway, One Market Plaza and 300 Mission Street are 90.0%, 49.0% and 31.1%, respectively.
(2)
We are currently exploring various alternatives to refinance this loan and believe it is probable that we will be successful in refinancing it prior to its maturity.
(3)
Represents variable rate loans that have been fixed by interest rate swaps through August 2024. See Note 8, Derivative Instruments and Hedging Activities. On June 16, 2023, we amended the loans to replace LIBOR with SOFR, effective July 7, 2023.
(4)
Represents variable rate loans, where SOFR has been capped at 4.50% through August 2024. See Note 8, Derivative Instruments and Hedging Activities. On June 16, 2023, we amended the loans to replace LIBOR with SOFR, effective July 7, 2023.
v3.23.3
Derivative Instruments and Hedging Activities
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities
8.
Derivative Instruments and Hedging Activities

 

 

On July 29, 2021, in connection with the $860,000,000 refinancing of 1301 Avenue of the Americas, we had entered into interest rate swap agreements with an aggregate notional amount of $500,000,000 to fix LIBOR at 0.46% through August 2024. On June 16, 2023, we amended the swap agreements to replace LIBOR with SOFR, effective July 7, 2023. We also entered into interest rate cap agreements with an aggregate notional amount of $360,000,000 to cap LIBOR at 2.00% which expired in August 2023. Upon expiration of these agreements, we entered into new interest rate cap agreements for the same notional amount to cap SOFR at 4.50% through August 2024. These interest rate swaps and interest rate caps are designated as cash flow hedges and therefore changes in their fair values are recognized in other comprehensive income or loss (outside of earnings). We recognized other comprehensive loss of $6,105,000 and $17,630,000 for the three and nine months ended September 30, 2023, respectively, and comprehensive income of $9,796,000 and $34,450,000 for the three and nine months ended September 30, 2022, respectively, from the changes in the fair value of these derivative financial instruments. See Note 10, Accumulated Other Comprehensive Income. During the next twelve months, we estimate that $20,826,000 of the amounts to be recognized in accumulated other comprehensive income will be reclassified as a decrease to interest expense.

 

The tables below provide additional details on our interest rate swaps and interest rate caps that are designated as cash flow hedges.

 

 

 

Notional

 

 

Effective

 

Maturity

 

Benchmark

 

Strike

 

 

Fair Value as of

 

Property

 

Amount

 

 

Date

 

Date

 

Rate

 

Rate

 

 

September 30, 2023

 

 

December 31, 2022

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   1301 Avenue of the Americas

 

$

500,000

 

 

Jul-2021

 

Aug-2024

 

SOFR

 

 

0.49

%

 

$

20,865

 

 

$

32,681

 

Total interest rate swap assets designated as cash flow hedges (included in "other assets")

$

20,865

 

 

$

32,681

 

 

 

 

 

Notional

 

 

Effective

 

Maturity

 

Benchmark

 

Strike

 

 

Fair Value as of

 

Property

 

Amount

 

 

Date

 

Date

 

Rate

 

Rate

 

 

September 30, 2023

 

 

December 31, 2022

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   1301 Avenue of the Americas

 

$

360,000

 

 

Aug-2023

 

Aug-2024

 

SOFR

 

 

4.50

%

 

$

2,776

 

 

$

-

 

   1301 Avenue of the Americas

 

 

360,000

 

 

Jul-2021

 

Aug-2023

 

LIBOR

 

 

2.00

%

 

 

-

 

 

 

6,123

 

Total interest rate cap assets designated as cash flow hedges (included in "other assets")

$

2,776

 

 

$

6,123

 

 

 

We have agreements with various derivative counterparties that contain provisions wherein a default on our indebtedness could be deemed a default on our derivative obligations, which would require us to settle our derivative obligations for cash. As of September 30, 2023, we did not have any obligations relating to our interest rate swaps or interest rate caps that contained such provisions.
v3.23.3
Equity
 9 Months Ended
Sep. 30, 2023
Stockholders' Equity Note [Abstract]  
Equity
9.
Equity

 

 

Stock Repurchase Program

 

On November 5, 2019, we received authorization from our Board of Directors to repurchase up to $200,000,000 of our common stock, from time to time, in the open market or in privately negotiated transactions. As of December 31, 2022, we had repurchased a total of 24,183,768 common shares at a weighted average price of $7.65 per share, or $185,000,000 in the aggregate. As of September 30, 2023, we have $15,000,000 available for future repurchases under the existing program. The amount and timing of future repurchases, if any, will depend on a number of factors, including, the price and availability of our shares, trading volume, general market conditions and available funding. The stock repurchase program may be suspended or discontinued at any time.
v3.23.3
Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income
10.
Accumulated Other Comprehensive Income

 

 

The following table sets forth changes in accumulated other comprehensive income by component for the three and nine months ended September 30, 2023 and 2022, respectively, including amounts attributable to noncontrolling interests in the Operating Partnership.

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

(Amounts in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Amount of income related to the cash flow hedges recognized
   in other comprehensive (loss) income (1)

$

1,804

 

 

$

12,134

 

 

$

6,254

 

 

$

36,786

 

Amounts reclassified from accumulated other comprehensive
   income decreasing interest and debt expense (1)

 

(7,909

)

 

 

(2,338

)

 

 

(23,884

)

 

 

(2,336

)

Amount of income related to unconsolidated joint ventures
   recognized in other comprehensive (loss) income (2)

 

1,055

 

 

 

6,150

 

 

 

4,196

 

 

 

18,046

 

Amounts reclassified from accumulated other comprehensive
   income (decreasing) increasing loss from unconsolidated joint
   ventures (2)

 

(2,589

)

 

 

(443

)

 

 

(6,899

)

 

 

1,063

 

 

(1)
Represents amounts related to interest rate swaps with an aggregate notional value of $500,000 and interest rate caps with an aggregate notional value of $360,000, which were designated as cash flow hedges.
(2)
Primarily represents amounts related to an interest rate swap with a notional value of $402,000, which was designated as a cash flow hedge.
v3.23.3
Noncontrolling Interests
 9 Months Ended
Sep. 30, 2023
Noncontrolling Interest [Abstract]  
Noncontrolling Interests
11.
Noncontrolling Interests

 

 

Consolidated Joint Ventures

 

Noncontrolling interests in consolidated joint ventures consist of equity interests held by third parties in 1633 Broadway, One Market Plaza and 300 Mission Street. As of September 30, 2023 and December 31, 2022, noncontrolling interests in our consolidated joint ventures aggregated $410,944,000 and $402,118,000, respectively.

 

 

Consolidated Real Estate Related Funds

 

Noncontrolling interests in our consolidated real estate related funds consist of equity interests held by third parties in our Residential Development Fund and Fund X. As of September 30, 2023 and December 31, 2022, the noncontrolling interests in our consolidated real estate related funds aggregated $162,973,000 and $173,375,000, respectively.

 

 

Operating Partnership

 

Noncontrolling interests in the Operating Partnership represent 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 September 30, 2023 and December 31, 2022, noncontrolling interests in the Operating Partnership on our consolidated balance sheets had a carrying amount of $306,836,000 and $242,982,000, respectively, and a redemption value of $89,765,000 and $86,644,000, respectively, based on the closing share price of our common stock on the New York Stock Exchange at the end of each period.

v3.23.3
Variable Interest Entities ("VIEs")
 9 Months Ended
Sep. 30, 2023
Variable Interest Entities [Abstract]  
Variable Interest Entities ("VIEs")
12.
Variable Interest Entities (“VIEs”)

 

 

In the normal course of business, we are the general partner of various types of investment vehicles, which may be considered VIEs. We may, from time to time, own equity or debt securities through vehicles, each of which are considered variable interests. Our involvement in financing the operations of the VIEs is generally limited to our investments in the entity. We consolidate these entities when we are deemed to be the primary beneficiary.

 

 

Consolidated VIEs

 

We are the sole general partner of, and owned approximately 91.8% of, the Operating Partnership as of September 30, 2023. The Operating Partnership is considered a VIE and is consolidated in our consolidated financial statements. Since we conduct our business through and substantially all of our interests are held by the Operating Partnership, the assets and liabilities on our consolidated financial statements represent the assets and liabilities of the Operating Partnership. As of September 30, 2023 and December 31, 2022, the Operating Partnership held interests in consolidated VIEs owning properties and real estate related funds that were determined to be VIEs. The assets of these consolidated VIEs may only be used to settle the obligations of the entities and such obligations are secured only by the assets of the entities and are non-recourse to the Operating Partnership or us. The following table summarizes the assets and liabilities of consolidated VIEs of the Operating Partnership.

 

 

 

As of

 

(Amounts in thousands)

 

September 30, 2023

 

 

December 31, 2022

 

Real estate, net

 

$

3,306,722

 

 

$

3,364,482

 

Cash and cash equivalents and restricted cash

 

 

140,963

 

 

 

144,446

 

Accounts and other receivables

 

 

9,959

 

 

 

13,647

 

Real estate related fund investments

 

 

68,225

 

 

 

105,369

 

Investments in unconsolidated joint ventures

 

 

90,865

 

 

 

77,961

 

Deferred rent receivable

 

 

206,500

 

 

 

197,658

 

Deferred charges, net

 

 

46,841

 

 

 

49,485

 

Intangible assets, net

 

 

42,404

 

 

 

50,553

 

Other assets

 

 

20,958

 

 

 

9,860

 

Total VIE assets

 

$

3,933,437

 

 

$

4,013,461

 

 

 

 

 

 

 

 

Notes and mortgages payable, net

 

$

2,449,917

 

 

$

2,489,902

 

Accounts payable and accrued expenses

 

 

52,873

 

 

 

61,492

 

Intangible liabilities, net

 

 

18,369

 

 

 

21,936

 

Other liabilities

 

 

4,649

 

 

 

6,051

 

Total VIE liabilities

 

$

2,525,808

 

 

$

2,579,381

 

 

 

Unconsolidated VIEs

 

As of September 30, 2023, the Operating Partnership held variable interests in entities that own the unconsolidated real estate related funds that were deemed to be VIEs. The following table summarizes our investments in these unconsolidated real estate related funds and the maximum risk of loss from these investments.

 

 

 

 

As of

 

 

(Amounts in thousands)

 

September 30, 2023

 

 

December 31, 2022

 

 

Investments

 

$

4,537

 

 

$

3,411

 

 

Asset management fees and other receivables

 

 

-

 

 

 

21

 

 

Maximum risk of loss

 

$

4,537

 

 

$

3,432

 

 
v3.23.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements
13.
Fair Value Measurements

 

 

Financial Assets Measured at Fair Value

 

The following table summarizes the fair value of our financial assets that are measured at fair value on our consolidated balance sheets as of the dates set forth below, based on their levels in the fair value hierarchy.

 

 

As of September 30, 2023

 

(Amounts in thousands)

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Real estate related fund investments

$

68,225

 

 

$

-

 

 

$

-

 

 

$

68,225

 

Interest rate swap assets (included in "other assets")

 

20,865

 

 

 

-

 

 

 

20,865

 

 

 

-

 

Interest rate cap assets (included in "other assets")

 

2,776

 

 

 

-

 

 

 

2,776

 

 

 

-

 

Total assets

$

91,866

 

 

$

-

 

 

$

23,641

 

 

$

68,225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2022

 

(Amounts in thousands)

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Real estate related fund investments

$

105,369

 

 

$

-

 

 

$

-

 

 

$

105,369

 

Interest rate swap assets (included in "other assets")

 

32,681

 

 

 

-

 

 

 

32,681

 

 

 

-

 

Interest rate cap assets (included in "other assets")

 

6,123

 

 

 

-

 

 

 

6,123

 

 

 

-

 

Total assets

$

144,173

 

 

$

-

 

 

$

38,804

 

 

$

105,369

 

 

 

Real Estate Related Fund Investments

 

As of September 30, 2023, real estate related fund investments were comprised of investments in two mezzanine loans made by Fund X. These investments are measured at fair value on our consolidated balance sheet and are classified as Level 3. The primary unobservable input used in determining the fair value of one mezzanine loan is the credit spread over the base rate, which was 10.00% as of September 30, 2023. A significant increase or decrease in the credit spread would result in a significantly lower or higher fair value, respectively. The fair value of the other mezzanine loan investment is based on a negotiated transaction price.

 

The table below summarizes the changes in the fair value of real estate related fund investments that are classified as Level 3 for the three and nine months ended September 30, 2023.

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

(Amounts in thousands)

 

September 30, 2023

 

 

September 30, 2023

 

 

Beginning balance

 

$

66,606

 

 

$

105,369

 

 

Additional investments

 

 

1,591

 

 

 

9,631

 

 

Net realized losses

 

 

-

 

 

 

(1,224

)

 

Net unrealized gains (losses)

 

 

28

 

 

 

(45,551

)

(1)

Ending balance

 

$

68,225

 

 

$

68,225

 

 

 

 

(1)
Primarily represents an unrealized loss on a mezzanine loan investment based on a negotiated transaction price.

 

 

Financial Liabilities Not Measured at Fair Value

 

Financial liabilities not measured at fair value on our consolidated balance sheets consist of notes and mortgages payable, and the revolving credit facility. The following table summarizes the carrying amounts and fair value of these financial instruments as of the dates set forth below.

 

 

As of September 30, 2023

 

 

As of December 31, 2022

 

(Amounts in thousands)

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Notes and mortgages payable

$

3,817,050

 

 

$

3,442,036

 

 

$

3,858,000

 

 

$

3,566,096

 

Revolving credit facility

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total liabilities

$

3,817,050

 

 

$

3,442,036

 

 

$

3,858,000

 

 

$

3,566,096

 
v3.23.3
Leases
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases
14.
Leases

 

 

We lease office, retail and storage space to tenants, primarily under non-cancellable operating leases which generally have terms ranging from five to fifteen years. Most of our leases provide tenants with extension options at either fixed or market rates and few of our leases provide tenants with options to early terminate, but such options generally impose an economic penalty on the tenant upon exercising. Rental revenue is recognized in accordance with ASC Topic 842, Leases, and includes (i) fixed payments of cash rents, which represents revenue each tenant pays in accordance with the terms of its respective lease and that is recognized on a straight-line basis over the non-cancellable term of the lease, and includes the effects of rent steps and rent abatements under the leases, (ii) variable payments of tenant reimbursements, which are recoveries of all or a portion of the operating expenses and real estate taxes of the property and is recognized in the same period as the expenses are incurred, (iii) amortization of acquired above and below-market leases, net and (iv) lease termination income.

 

The following table sets forth the details of our rental revenue.

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands)

2023

 

 

2022

 

 

2023

 

 

2022

 

Rental revenue:

 

 

 

 

 

 

 

 

 

 

 

Fixed

$

160,107

 

 

$

162,444

 

 

$

474,931

 

 

$

480,766

 

Variable

 

22,408

 

 

 

16,806

 

 

 

54,803

 

 

 

45,649

 

Total rental revenue

$

182,515

 

 

$

179,250

 

 

$

529,734

 

 

$

526,415

 

 

The following table is a schedule of future undiscounted cash flows under non-cancellable operating leases in effect as of September 30, 2023, for the three-month period from October 1, 2023 through December 31, 2023, and each of the five succeeding years and thereafter commencing January 1, 2024.

 

 

(Amounts in thousands)

 

 

2023

 

$

156,143

 

2024

 

 

618,325

 

2025

 

 

577,127

 

2026

 

 

497,057

 

2027

 

 

436,276

 

2028

 

 

434,292

 

Thereafter

 

 

1,897,555

 

Total

 

$

4,616,775

 
v3.23.3
Fee and Other Income
 9 Months Ended
Sep. 30, 2023
Revenues [Abstract]  
Fee and Other Income
15.
Fee and Other Income

 

 

The following table sets forth the details of our fee and other income.

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands)

2023

 

 

2022

 

 

2023

 

 

2022

 

Fee income:

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

$

2,459

 

 

$

3,166

 

 

$

6,960

 

 

$

9,138

 

Property management

 

 

1,810

 

 

 

1,849

 

 

 

5,503

 

 

 

6,171

 

Acquisition, disposition, leasing and other

 

304

 

 

 

117

 

 

 

1,643

 

 

 

7,785

 

Total fee income

 

4,573

 

 

 

5,132

 

 

 

14,106

 

 

 

23,094

 

Other income (1)

 

2,093

 

 

 

2,765

 

 

 

6,477

 

 

 

6,840

 

Total fee and other income

$

6,666

 

 

$

7,897

 

 

$

20,583

 

 

$

29,934

 

 

 

(1)
Primarily comprised of (i) tenant requested services, including cleaning, overtime heating and cooling and (ii) parking income.
v3.23.3
Interest and Debt Expense
 9 Months Ended
Sep. 30, 2023
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.

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Interest expense

 

$

37,549

 

 

$

35,412

 

 

$

107,810

 

 

$

102,190

 

Amortization of deferred financing costs

 

 

1,553

 

 

 

1,537

 

 

 

4,630

 

 

 

4,614

 

Total interest and debt expense

 

$

39,102

 

 

$

36,949

 

 

$

112,440

 

 

$

106,804

 
v3.23.3
Incentive Compensation
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Incentive Compensation
17.
Incentive Compensation

 

 

Stock-Based Compensation

 

Our Amended and Restated 2014 Equity Incentive Plan provides for grants of equity awards to our executive officers, non-employee directors and employees in order to attract and motivate talent for which we compete. In addition, equity awards are an effective management retention tool as they vest over multiple years based on continued employment. Equity awards are granted in the form of (i) restricted stock and (ii) long-term incentive plan (“LTIP”) units, which represent a class of partnership interests in our Operating Partnership and are typically comprised of Performance-Based LTIP units, Time-Based LTIP units, Performance-Based Appreciation Only LTIP (“AOLTIP”) units and Time-Based AOLTIP units. We account for all stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation. We recognized stock-based compensation expense of $4,680,000 and $4,149,000 for the three months ended September 30, 2023 and 2022, respectively, and $14,011,000 and $14,853,000 for the nine months ended September 30, 2023 and 2022, respectively.

 

 

2023 Equity Grants

 

2023 Performance-Based Awards Program (“2023 Performance Program”)

 

On January 25, 2023, the Compensation Committee of our Board of Directors (the “Compensation Committee”) approved the 2023 Performance Program, a multi-year Performance-Based long-term incentive compensation program. Under the 2023 Performance Program, participants may earn awards in the form of LTIP units based on our achievement of rigorous Net Operating Income (“NOI”) goals over a three-year performance measurement period beginning on January 1, 2023 and continuing through December 31, 2025. The amount of LTIP units otherwise earned based on the achievement of the NOI goals would then be increased or decreased based on our Total Shareholder Return (“TSR”) versus that of our New York City office REIT peers (comprised of Vornado Realty Trust, SL Green Realty Corp. and Empire State Realty Trust) but the modifier will not result in a total payout exceeding 100% of the units granted. Additionally, if our TSR is negative over the three-year performance measurement period, then the number of LTIP units that are earned under the 2023 Performance Program will be reduced by 30.0% of the number of such awards that otherwise would have been earned. Furthermore, awards earned under the 2023 Performance Program are subject to vesting based on continued employment with us through December 31, 2026, with 50.0% of each award vesting upon the conclusion of the performance measurement period, and the remaining 50.0% vesting on December 31, 2026. Our Named Executive Officers are required to hold earned awards for an additional year following vesting. Awards granted under the 2023 Performance Program had a fair value of $7,067,000 on the date of the grant, which is being amortized into expense over the four-year vesting period using a graded vesting attribution method.

 

Time-Based Unit Awards Program (LTIP Units, AOLTIP Units and Restricted Stock)

 

On January 25, 2023, we also granted an aggregate of 796,349 LTIP units, 2,054,270 AOLTIP units and 81,531 shares of Restricted Stock to our executive officers and employees that will vest over a period of three to four years. Awards granted under the Time-Based Unit Awards Program had an aggregate grant date fair value of $8,783,000, which is being amortized into expense on a straight-line basis over the vesting period.

 

 

Incentive and Retention Plan Grants

 

On September 8, 2023, the Compensation Committee approved the grant of equity awards to a broad group of employees, including our executive officers, to further incentivize and align our executive officers and employees with our stockholders and to support employee retention (the “Incentive and Retention Plan”). The awards granted under the Incentive and Retention Plan were comprised of 7,518,519 Performance-Based AOLTIP units and 4,112,044 Time-Based LTIP units, and are intended to be in lieu of our annual equity awards that would otherwise be granted in January 2024 and January 2025. The following are the details of the awards granted under the Incentive and Retention Plan.

Performance-Based AOLTIP units

The Performance-Based AOLTIP units will only be earned and eligible to be converted into common units if the highest consecutive 20-trading day average closing stock price of our common stock on the New York Stock Exchange during the 10-year term (“Applicable Price”) exceeds $5.12, which was the closing stock price of our common stock on the New York Stock Exchange on the date of grant by the following performance levels:

•
No Performance-Based AOLTIP units are earned if the Applicable Price is less than 25%, or $6.40;
•
33% of the Performance-Based AOLTIP units are earned if the Applicable Price is greater than 25%, or $6.40;
•
67% of the Performance-Based AOLTIP units are earned if the Applicable Price is greater than 50%, or $7.68;
•
100% of the Performance-Based AOLTIP units are earned if the Applicable Price is greater than 75%, or $8.96;

 

The Performance-Based AOLTIP units are subject to linear interpolation for performance between levels. In addition, the Performance-Based AOLTIP units are also subject to Time-Based vesting, with 20% of the earned units vesting on October 1, 2026 and the remaining 80% of the earned units vesting on October 1, 2027. Furthermore, our Named Executive Officers are required to hold the earned Performance-Based AOLTIP units for an additional year following vesting.

Time-Based LTIP units

The Time-Based LTIP units are subject to Service-Based vesting, with 50% of the units vesting on October 1, 2026 and the remaining 50% of the units vesting on October 1, 2027. Our Named Executive Officers are required to hold the Time-Based LTIP units for an additional year following vesting.

 

 

Completion of the 2020 Performance-Based Awards Program (“2020 Performance Program”)

 

The three-year performance measurement period with respect to our 2020 Performance Program ended on December 31, 2022. On January 25, 2023, the Compensation Committee determined that (i) our TSR ranked in the 75th percentile amongst the TSR of our New York City office REIT peers and (ii) our TSR ranked in the 37th percentile amongst the performance of the SNL U.S. Office REIT Index constituents, resulting in a payout of approximately 59.7% of the LTIP units granted. Additionally, in accordance with the 2020 Performance Program, the final payout was reduced by 30.0% since our TSR was negative over the three-year performance measurement period. Accordingly, only 443,713, or 41.5% of the LTIP units that were granted under the 2020 Performance Program, were earned.
v3.23.3
Earnings Per Share
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Earnings Per Share
18.
Earnings Per Share

 

 

The following table summarizes our net (loss) income and the number of common shares used in the computation of basic and diluted income per common share, which includes the weighted average number of common shares outstanding and the effect of dilutive potential common shares, if any.

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands, except per share amounts)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to common stockholders

 

$

(8,385

)

 

$

(1,537

)

 

$

(54,194

)

 

$

1,474

 

Earnings allocated to unvested participating securities

 

 

(10

)

 

 

(21

)

 

 

(40

)

 

 

(64

)

Numerator for (loss) income per common share -
   basic and diluted

 

$

(8,395

)

 

$

(1,558

)

 

$

(54,234

)

 

$

1,410

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Denominator for basic (loss) income per common share -
   weighted average shares

 

 

217,043

 

 

 

224,865

 

 

 

216,872

 

 

 

222,229

 

Effect of dilutive stock-based compensation plans (1)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

34

 

Denominator for diluted (loss) income per common share -
   weighted average shares

 

 

217,043

 

 

 

224,865

 

 

 

216,872

 

 

 

222,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income per common share - basic and diluted

 

$

(0.04

)

 

$

(0.01

)

 

$

(0.25

)

 

$

0.01

 

 

(1)
The effect of dilutive securities excludes 18,470 and 18,041 weighted average share equivalents for the three months ended September 30, 2023 and 2022, respectively, and 17,804 and 20,889 weighted average share equivalents for the nine months ended September 30, 2023 and 2022, respectively, as their effect was anti-dilutive.
v3.23.3
Related Parties
 9 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
Related Parties
19.
Related Parties

 

 

Management Agreements

We provide property management, leasing and other related services to certain properties owned by members of the Otto Family. We recognized fee income of $262,000 and $272,000 for the three months ended September 30, 2023 and 2022, respectively, and $791,000 and $1,021,000 for the nine months ended September 30, 2023 and 2022, respectively, in connection with these agreements, which is included as a component of “fee and other income” on our consolidated statements of income. As of September 30, 2023 and December 31, 2022, amounts owed to us under these agreements aggregated $47,000 and $52,000, respectively, which are included as a component of “accounts and other receivables” on our consolidated balance sheets.

 

We also provide asset management, property management, leasing and other related services to our unconsolidated joint ventures and real estate related funds. We recognized fee income of $3,585,000 and $4,277,000 for the three months ended September 30, 2023 and 2022, respectively, and $11,288,000 and $20,075,000 for the nine months ended September 30, 2023 and 2022, respectively, in connection with these agreements, which is included as a component of “fee and other income” on our consolidated statements of income. As of September 30, 2023 and December 31, 2022, amounts owed to us under these agreements aggregated $2,479,000 and $3,032,000, respectively, which are included as a component of “accounts and other receivables” on our consolidated balance sheets.

 

 

HT Consulting GmbH

We have an agreement with HT Consulting GmbH (“HTC”), a licensed broker in Germany, to supervise selling efforts for our joint ventures and private equity real estate related funds (or investments in feeder vehicles for these funds) to investors in Germany, including distribution of securitized notes of feeder vehicles for Fund X. Pursuant to this agreement, we have agreed to pay HTC for the costs incurred plus a mark-up of 10%. HTC is 100% owned by Albert Behler, our Chairman, Chief Executive Officer and President. We incurred costs aggregating $102,000 and $105,000 for the three months ended September 30, 2023 and 2022, respectively, and $293,000 and $621,000 for the nine months ended September 30, 2023 and 2022, respectively, in connection with this agreement. As of September 30, 2023 and December 31, 2022, we owed $205,000 and $119,000, respectively, to HTC under this agreement, which are included as a component of “accounts payable and accrued expenses” on our consolidated balance sheets.

 

 

ParkProperty Capital, LP

 

ParkProperty Capital, LP (“ParkProperty”), an entity partially owned by Katharina Otto-Bernstein (a member of our Board of Directors), leased 3,330 square feet at 1633 Broadway (“1633 Lease”). In December 2022, upon expiration of the 1633 Lease, ParkProperty entered into a five-year lease for 4,233 square feet at 1325 Avenue of the Americas. We recognized rental revenue of $69,000 and $53,000 for the three months ended September 30, 2023 and 2022, respectively, and $207,000 and $161,000 for the nine months ended September 30, 2023 and 2022, respectively, pursuant to these leases.

 

 

Mannheim Trust

 

A subsidiary of Mannheim Trust leases 3,127 square feet of office space at 712 Fifth Avenue, our 50.0% owned unconsolidated joint venture, pursuant to a lease agreement which expires in June 2025. The Mannheim Trust is for the benefit of the children of Dr. Martin Bussmann, who is a member of our Board of Directors. We recognized $30,000 and $91,000 for the three months ended September 30, 2023 and 2022, respectively, and $154,000 and $273,000 for the nine months ended September 30, 2023 and 2022, respectively, for our share of rental income pursuant to this lease.

 

 

Other

 

We have entered into an agreement with Kramer Design Services (“Kramer Design”) to develop branding and signage for the amenity center at 1301 Avenue of the Americas. Kramer Design is 100% owned by the spouse of Albert Behler, our Chairman, Chief Executive Officer and President. During the three and nine months ended September 30, 2023, we incurred and paid Kramer Design $19,000 and $103,000, respectively, in connection with services rendered pursuant to this agreement.
v3.23.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
20.
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 such as 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 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. In addition, certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could adversely impact our results of operations and cash flow, expose us to increased risks that would be uninsured, and/or adversely impact our ability to attract officers and directors.

 

The terms of our consolidated mortgage debt agreements 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 require 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 September 30, 2023, we believe we are in compliance with all of our covenants.

 

 

Transfer Tax Assessments

 

During 2017, the New York City Department of Finance issued Notices of Determination (“Notices”) assessing additional transfer taxes (including interest and penalties) in connection with the transfer of interests in certain properties during our 2014 initial public offering. We believe, after consultation with legal counsel, that the likelihood of loss is reasonably possible, and while it is not possible to predict the outcome of these Notices, we estimate the range of loss could be between $0 and $61,000,000. Since no amount in this range is a better estimate than any other amount within the range, we have not accrued any liability arising from potential losses relating to these Notices in our consolidated financial statements.
v3.23.3
Segments
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segments
21.
Segments

 

 

Our reportable segments are separated by region, based on the two regions in which we conduct our business: New York and San Francisco. Our determination of segments is aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our Chief Operating Decision Maker, makes key operating decisions, evaluates financial results and manages our business.

 

The following tables provide Net Operating Income (“NOI”) for each reportable segment for the periods set forth below.

 

 

 

For the Three Months Ended September 30, 2023

 

(Amounts in thousands)

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Property-related revenues

 

$

184,608

 

 

$

118,749

 

 

$

66,252

 

 

$

(393

)

Property-related operating expenses

 

 

(75,502

)

 

 

(52,470

)

 

 

(22,447

)

 

 

(585

)

NOI from unconsolidated joint ventures
   (excluding One Steuart Lane)

 

 

9,233

 

 

 

3,376

 

 

 

5,858

 

 

 

(1

)

NOI (1)

 

$

118,339

 

 

$

69,655

 

 

$

49,663

 

 

$

(979

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2022

 

(Amounts in thousands)

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Property-related revenues

 

$

182,015

 

 

$

117,431

 

 

$

64,667

 

 

$

(83

)

Property-related operating expenses

 

 

(72,845

)

 

 

(52,421

)

 

 

(19,496

)

 

 

(928

)

NOI from unconsolidated joint ventures
   (excluding One Steuart Lane)

 

 

11,540

 

 

 

3,556

 

 

 

7,837

 

 

 

147

 

NOI (1)

 

$

120,710

 

 

$

68,566

 

 

$

53,008

 

 

$

(864

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2023

 

(Amounts in thousands)

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Property-related revenues

 

$

536,211

 

 

$

342,812

 

 

$

194,564

 

 

$

(1,165

)

Property-related operating expenses

 

 

(216,889

)

 

 

(150,676

)

 

 

(64,529

)

 

 

(1,684

)

NOI from unconsolidated joint ventures
   (excluding One Steuart Lane)

 

 

30,334

 

 

 

10,143

 

 

 

20,133

 

 

 

58

 

NOI (1)

 

$

349,656

 

 

$

202,279

 

 

$

150,168

 

 

$

(2,791

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2022

 

(Amounts in thousands)

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Property-related revenues

 

$

533,255

 

 

$

349,136

 

 

$

185,798

 

 

$

(1,679

)

Property-related operating expenses

 

 

(207,320

)

 

 

(148,779

)

 

 

(55,369

)

 

 

(3,172

)

NOI from unconsolidated joint ventures
   (excluding One Steuart Lane)

 

 

34,359

 

 

 

9,902

 

 

 

24,162

 

 

 

295

 

NOI (1)

 

$

360,294

 

 

$

210,259

 

 

$

154,591

 

 

$

(4,556

)

 

 

(1)
NOI is used to measure the operating performance of our properties. NOI consists of rental revenue (which includes property rentals, tenant reimbursements and lease termination income) and certain other property-related revenue less operating expenses (which includes property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI and, accordingly, our presentation of NOI may not be comparable to other real estate companies.

 

 

The following table provides a reconciliation of NOI to net (loss) income attributable to common stockholders for the periods set forth below.

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands)

2023

 

 

2022

 

 

2023

 

 

2022

 

NOI

$

118,339

 

 

$

120,710

 

 

$

349,656

 

 

$

360,294

 

Add (subtract) adjustments to arrive to net (loss) income:

 

 

 

 

 

 

 

 

 

 

 

Fee income

 

4,573

 

 

 

5,132

 

 

 

14,106

 

 

 

23,094

 

Depreciation and amortization expense

 

(60,263

)

 

 

(58,284

)

 

 

(181,778

)

 

 

(171,306

)

General and administrative expenses

 

(15,460

)

 

 

(13,150

)

 

 

(46,307

)

 

 

(45,501

)

Income (loss) from real estate related fund investments

 

2,060

 

 

 

-

 

 

 

(37,034

)

 

 

-

 

NOI from unconsolidated joint ventures (excluding
   One Steuart Lane)

 

(9,233

)

 

 

(11,540

)

 

 

(30,334

)

 

 

(34,359

)

Loss from unconsolidated joint ventures

 

(28,974

)

 

 

(5,797

)

 

 

(63,138

)

 

 

(15,326

)

Interest and other income, net

 

4,115

 

 

 

1,580

 

 

 

10,007

 

 

 

2,607

 

Interest and debt expense

 

(39,102

)

 

 

(36,949

)

 

 

(112,440

)

 

 

(106,804

)

Other, net

 

(853

)

 

 

195

 

 

 

(1,190

)

 

 

244

 

(Loss) income before income taxes

 

(24,798

)

 

 

1,897

 

 

 

(98,452

)

 

 

12,943

 

Income tax expense

 

(263

)

 

 

(673

)

 

 

(1,124

)

 

 

(1,559

)

Net (loss) income

 

(25,061

)

 

 

1,224

 

 

 

(99,576

)

 

 

11,384

 

Less net (income) loss attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(4,887

)

 

 

(4,179

)

 

 

(15,879

)

 

 

(12,383

)

Consolidated real estate related funds

 

20,934

 

 

 

1,309

 

 

 

57,412

 

 

 

2,677

 

Operating Partnership

 

629

 

 

 

109

 

 

 

3,849

 

 

 

(204

)

Net (loss) income attributable to common stockholders

$

(8,385

)

 

$

(1,537

)

 

$

(54,194

)

 

$

1,474

 

 

 

The following table provides the total assets for each of our reportable segments as of the dates set forth below.

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets as of:

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

September 30, 2023

 

$

8,288,559

 

 

$

5,208,082

 

 

$

2,575,677

 

 

$

504,800

 

December 31, 2022

 

 

8,453,254

 

 

 

5,311,636

 

 

 

2,631,265

 

 

 

510,353

 
v3.23.3
Basis of Presentation and Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

 

The accompanying consolidated financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conjunction with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted. These consolidated financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. In the opinion of management, all significant adjustments (which include only normal recurring adjustments) and eliminations (which include intercompany balances and transactions) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. The consolidated balance sheet as of December 31, 2022 was derived from audited financial statements as of that date but does not include all information and disclosures required by GAAP. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC.
Significant Accounting Policies

Significant Accounting Policies

There are no material changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.
Use of Estimates

Use of Estimates

 

We have made 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 materially from those estimates. The results of operations for the three and nine months ended September 30, 2023, are not necessarily indicative of the operating results for the full year.
Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

 

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, which adds Accounting Standards Codification (“ASC”) Topic 848, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides temporary optional expedients and exceptions to ease financial reporting burdens related to applying current GAAP to modifications of contracts, hedging relationships and other transactions in connection with the transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. ASU 2020-04 was effective beginning March 12, 2020 to December 31, 2022. In January 2021, the FASB issued ASU 2021-01 to clarify that certain optional expedients and exceptions apply to modifications of derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements, and for calculating price alignment interest. ASU 2021-01 was effective beginning January 7, 2021 to December 31, 2022. In December 2022, the FASB issued ASU 2022-06 to extend the effectiveness date of ASU 2020-04 and ASU 2021-01 from December 31, 2022 to December 31, 2024. In June 2023, we entered into loan modifications in connection with the transition from LIBOR to Secured Overnight Financing Rate (“SOFR”) for our variable rate loans and we applied the practical expedient to all such modifications.

 

In August 2023, the FASB issued ASU 2023-05, an update to ASC Topic 805, Business Combinations. ASU 2023-05 clarifies existing guidance by requiring a joint venture to recognize and initially measure assets contributed and liabilities assumed at fair value, upon its formation. These amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, with early adoption permitted. We will apply the provisions of ASU 2023-05 to new joint ventures, as applicable, but do not believe the adoption of ASU 2023-05 will have a material impact on our consolidated financial statements.
v3.23.3
Consolidated Real Estate Related Funds (Tables)
 9 Months Ended
Sep. 30, 2023
Real Estate Fund [Abstract]  
Summary of Income from Real Estate Related Fund Investments

The following table sets forth the details of income or loss from real estate related fund investments for the three and nine months ended September 30, 2023.

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

(Amounts in thousands)

September 30, 2023

 

 

September 30, 2023

 

 

Net investment income

$

2,032

 

 

$

9,741

 

 

Net realized losses

 

-

 

 

 

(1,224

)

 

Net unrealized gains (losses)

 

28

 

 

 

(45,551

)

(1)

Income (loss) from real estate related fund
   investments

 

2,060

 

 

 

(37,034

)

 

Less: noncontrolling interests in consolidated
   real estate related funds

 

(1,517

)

 

 

33,056

 

 

Income (loss) from real estate related fund
   investments attributable to Paramount
   Group, Inc.

$

543

 

 

$

(3,978

)

 

 

 

(1)
Primarily represents an unrealized loss on a mezzanine loan investment based on a negotiated transaction price.
v3.23.3
Investments in Unconsolidated Joint Ventures (Tables)
 9 Months Ended
Sep. 30, 2023
Summary of Financial Information of Unconsolidated Joint Ventures

The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below.

 

(Amounts in thousands)

 

Paramount

 

As of

 

Our Share of Investments:

 

Ownership

 

September 30, 2023

 

 

December 31, 2022

 

712 Fifth Avenue (1)

 

50.0%

 

$

-

 

 

$

-

 

Market Center

 

67.0%

 

 

181,437

 

 

 

192,948

 

55 Second Street (2)

 

44.1%

 

 

83,560

 

 

 

85,340

 

111 Sutter Street (3)

 

49.0%

 

 

-

 

 

 

-

 

1600 Broadway (2)

 

9.2%

 

 

8,762

 

 

 

9,113

 

60 Wall Street

 

5.0%

 

 

-

 

(4)

 

25,034

 

One Steuart Lane (2)

 

35.0% (5)

 

 

90,865

 

 

 

77,961

 

Oder-Center, Germany (2)

 

9.5%

 

 

3,400

 

 

 

3,107

 

Investments in unconsolidated joint ventures

 

$

368,024

 

 

$

393,503

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

(Amounts in thousands)

September 30,

 

 

September 30,

 

Our Share of Net Income (Loss):

2023

 

 

2022

 

 

2023

 

 

2022

 

712 Fifth Avenue (1)

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Market Center

 

(3,248

)

 

 

(2,811

)

 

 

(8,482

)

 

 

(7,661

)

55 Second Street (2)

 

(642

)

 

 

(825

)

 

 

(1,780

)

 

 

(2,296

)

111 Sutter Street (3)

 

-

 

 

 

(748

)

 

 

-

 

 

 

(2,207

)

1600 Broadway (2)

 

1

 

 

 

30

 

 

 

1

 

 

 

(38

)

60 Wall Street

 

-

 

(4)

 

(23

)

 

 

(25,001

)

(4)

 

42

 

One Steuart Lane (2)

 

(25,037

)

(6)

 

(1,516

)

 

 

(27,811

)

(6)

 

(3,303

)

Oder-Center, Germany (2)

 

(48

)

 

 

96

 

 

 

(65

)

 

 

137

 

Loss from unconsolidated joint ventures

$

(28,974

)

 

$

(5,797

)

 

$

(63,138

)

 

$

(15,326

)

 

(1)
At December 31, 2022, our basis in the joint venture that owns 712 Fifth Avenue was negative $13,427. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. For the nine months ended September 30, 2023, the joint venture had net income of $3,313 of which our 50.0% share was $1,657. Accordingly, our basis in the joint venture, taking into account our share of income, was negative $11,770 as of September 30, 2023.
(2)
As of September 30, 2023, the carrying amount of our investments in 55 Second Street, 1600 Broadway, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $463, $307, $640 and $4,215, respectively, and primarily represents the unamortized portion of our capitalized acquisition costs.
(3)
At December 31, 2022, our basis in the joint venture that owns 111 Sutter Street was negative $107. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. For the nine months ended September 30, 2023, the joint venture had net loss of $11,862 of which our 49.0% share was $5,813. Accordingly, our basis in the joint venture, taking into account our share of loss, was negative $5,920 as of September 30, 2023.
(4)
In May 2023, the joint venture that owns 60 Wall Street defaulted on the $575,000 non-recourse mortgage loan securing the property. The joint venture is currently in negotiations with the lender to modify the loan. Additionally, in the second quarter of 2023, the joint venture recognized a $455,893 real estate impairment loss. Accordingly, we recognized a $24,734 impairment loss on our investment in 60 Wall Street. This impairment, together with our share of operating losses recognized in the second quarter, reduced our investment balance to negative $668 as of June 30, 2023. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. For the three months ended September 30, 2023, the joint venture had net loss of $7,661 of which our 5.0% share was $383. Accordingly, our basis in the joint venture, taking into account our share of loss, was negative $1,051 as of September 30, 2023.
(5)
Represents RDF’s economic interest in One Steuart Lane, a for-sale residential condominium project. Our economic interest in One Steuart Lane (based on our 7.4% ownership interest in RDF) is 2.6%.
(6)
In the third quarter of 2023, One Steuart Lane recognized a $68,407 impairment loss related to residential condominium units and accordingly, RDF recognized a $23,942 impairment loss on its 35.0% investment in One Steuart Lane.
Unconsolidated Joint Ventures [Member]  
Summary of Financial Information of Unconsolidated Joint Ventures

The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates thereof and for the periods set forth below.

 

 

(Amounts in thousands)

As of

 

Balance Sheets:

September 30, 2023

 

 

December 31, 2022

 

Real estate, net

$

1,974,734

 

 

$

2,377,084

 

Cash and cash equivalents and restricted cash

 

208,778

 

 

 

252,540

 

Intangible assets, net

 

55,295

 

 

 

69,599

 

For-sale residential condominium units (1)

 

250,000

 

 

 

322,232

 

Other assets

 

84,647

 

 

 

87,054

 

Total assets

$

2,573,454

 

 

$

3,108,509

 

 

 

 

 

 

 

Notes and mortgages payable, net

$

1,740,516

 

 

$

1,834,916

 

Intangible liabilities, net

 

6,184

 

 

 

10,972

 

Other liabilities

 

81,698

 

 

 

50,783

 

Total liabilities

 

1,828,398

 

 

 

1,896,671

 

Equity

 

745,056

 

 

 

1,211,838

 

Total liabilities and equity

$

2,573,454

 

 

$

3,108,509

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

(Amounts in thousands)

September 30,

 

 

September 30,

 

 

Income Statements:

2023

 

 

2022

 

 

2023

 

 

2022

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

$

38,629

 

 

$

41,145

 

 

$

119,235

 

 

$

153,181

 

 

Other income (2)

 

874

 

 

 

15,250

 

 

 

6,492

 

 

 

65,276

 

 

Total revenues

 

39,503

 

 

 

56,395

 

 

 

125,727

 

 

 

218,457

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Operating (2)

 

23,941

 

 

 

34,234

 

 

 

73,632

 

 

 

129,035

 

 

Depreciation and amortization

 

16,863

 

 

 

17,734

 

 

 

52,341

 

 

 

68,140

 

 

Total expenses

 

40,804

 

 

 

51,968

 

 

 

125,973

 

 

 

197,175

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

734

 

 

 

471

 

 

 

2,226

 

 

 

487

 

 

Interest and debt expense

 

(19,895

)

 

 

(13,967

)

 

 

(53,256

)

 

 

(47,900

)

 

Impairment loss (3)

 

(68,407

)

 

 

-

 

 

 

(524,300

)

 

 

-

 

 

Loss before income taxes

 

(88,869

)

 

 

(9,069

)

 

 

(575,576

)

 

 

(26,131

)

 

Income tax expense

 

(2

)

 

 

(11

)

 

 

(32

)

 

 

(54

)

 

Net loss

$

(88,871

)

 

$

(9,080

)

 

$

(575,608

)

 

$

(26,185

)

 

 

 

(1)
Represents residential condominium units at One Steuart Lane that are available for sale.
(2)
Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.
(3)
Includes an impairment loss related to condominium units at One Steuart Lane in the three and nine months ended September 30, 2023 and a real estate impairment loss related to 60 Wall Street in the nine months ended September 30, 2023. See notes 4 and 6 on page 13.
v3.23.3
Intangible Assets and Liabilities (Tables)
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Intangible Assets and Liabilities

The following tables summarize our intangible assets (acquired above-market leases and acquired in-place leases) and intangible liabilities (acquired below-market leases) and the related amortization as of the dates thereof and for the periods set forth below.

 

As of

 

(Amounts in thousands)

September 30, 2023

 

 

December 31, 2022

 

Intangible assets:

 

 

 

 

 

Gross amount

$

268,017

 

 

$

337,104

 

Accumulated amortization

 

(193,626

)

 

 

(246,723

)

 

$

74,391

 

 

$

90,381

 

Intangible liabilities:

 

 

 

 

 

Gross amount

$

136,820

 

 

$

138,726

 

Accumulated amortization

 

(106,839

)

 

 

(102,533

)

 

$

29,981

 

 

$

36,193

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

(Amounts in thousands)

2023

 

 

2022

 

 

2023

 

 

2022

 

Amortization of above and below-market leases, net
   (component of "rental revenue")

$

1,445

 

 

$

(84

)

 

$

3,929

 

 

$

589

 

Amortization of acquired in-place leases
   (component of "depreciation and amortization")

 

4,635

 

 

 

5,401

 

 

 

13,706

 

 

 

16,344

 
Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases and In Place Leases

The following table sets forth amortization of acquired above and below-market leases, net and amortization of acquired in-place leases for the three-month period from October 1, 2023 through December 31, 2023, and each of the five succeeding years commencing from January 1, 2024.

 

(Amounts in thousands)

 

Above and
Below-Market Leases, Net

 

 

In-Place Leases

 

2023

 

$

1,446

 

 

$

4,632

 

2024

 

 

5,862

 

 

 

14,915

 

2025

 

 

4,541

 

 

 

10,394

 

2026

 

 

2,711

 

 

 

7,785

 

2027

 

 

2,398

 

 

 

7,140

 

2028

 

 

2,318

 

 

 

6,868

 
v3.23.3
Debt (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Summary of Outstanding Debt

The following table summarizes our consolidated outstanding debt.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate

 

 

 

 

 

Maturity

 

Fixed/

 

as of

 

 

As of

 

(Amounts in thousands)

Date

 

Variable Rate

 

September 30, 2023

 

 

September 30, 2023

 

 

December 31, 2022

 

Notes and mortgages payable:

 

 

 

 

 

 

 

 

 

 

 

1633 Broadway (1)

Dec-2029

 

Fixed

 

 

2.99

%

 

$

1,250,000

 

 

$

1,250,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One Market Plaza (1)

Feb-2024 (2)

 

Fixed

 

 

4.03

%

 

 

975,000

 

 

 

975,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1301 Avenue of the Americas

 

 

 

 

 

 

 

 

 

 

 

 

Aug-2026

 

Fixed (3)

 

 

2.49

%

 

 

500,000

 

 

 

500,000

 

 

Aug-2026

 

SOFR + 368 bps (4)

 

 

8.18

%

 

 

360,000

 

 

 

360,000

 

 

 

 

 

 

 

4.87

%

 

 

860,000

 

 

 

860,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 West 52nd Street

Jun-2026

 

Fixed

 

 

3.80

%

 

 

500,000

 

 

 

500,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

300 Mission Street (1)

Oct-2026

 

Fixed

 

 

4.50

%

 

 

232,050

 

 

 

273,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total notes and mortgages payable

 

 

3.88

%

 

 

3,817,050

 

 

 

3,858,000

 

Less: unamortized deferred financing costs

 

 

 

 

 

(14,717

)

 

 

(17,682

)

Total notes and mortgages payable, net

 

 

 

 

$

3,802,333

 

 

$

3,840,318

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$750 Million Revolving
   Credit Facility

Mar-2026

 

SOFR + 115 bps

n/a

 

 

$

-

 

 

$

-

 

 

 

(1)
Our ownership interests in 1633 Broadway, One Market Plaza and 300 Mission Street are 90.0%, 49.0% and 31.1%, respectively.
(2)
We are currently exploring various alternatives to refinance this loan and believe it is probable that we will be successful in refinancing it prior to its maturity.
(3)
Represents variable rate loans that have been fixed by interest rate swaps through August 2024. See Note 8, Derivative Instruments and Hedging Activities. On June 16, 2023, we amended the loans to replace LIBOR with SOFR, effective July 7, 2023.
(4)
Represents variable rate loans, where SOFR has been capped at 4.50% through August 2024. See Note 8, Derivative Instruments and Hedging Activities. On June 16, 2023, we amended the loans to replace LIBOR with SOFR, effective July 7, 2023.
v3.23.3
Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2023
Interest Rate Swap [Member]  
Derivative [Line Items]  
Schedule of Interest Rate Swaps and Interest Rate Caps

The tables below provide additional details on our interest rate swaps and interest rate caps that are designated as cash flow hedges.

 

 

 

Notional

 

 

Effective

 

Maturity

 

Benchmark

 

Strike

 

 

Fair Value as of

 

Property

 

Amount

 

 

Date

 

Date

 

Rate

 

Rate

 

 

September 30, 2023

 

 

December 31, 2022

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   1301 Avenue of the Americas

 

$

500,000

 

 

Jul-2021

 

Aug-2024

 

SOFR

 

 

0.49

%

 

$

20,865

 

 

$

32,681

 

Total interest rate swap assets designated as cash flow hedges (included in "other assets")

$

20,865

 

 

$

32,681

 
Interest Rate Cap [Member]  
Derivative [Line Items]  
Schedule of Interest Rate Swaps and Interest Rate Caps

 

 

Notional

 

 

Effective

 

Maturity

 

Benchmark

 

Strike

 

 

Fair Value as of

 

Property

 

Amount

 

 

Date

 

Date

 

Rate

 

Rate

 

 

September 30, 2023

 

 

December 31, 2022

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   1301 Avenue of the Americas

 

$

360,000

 

 

Aug-2023

 

Aug-2024

 

SOFR

 

 

4.50

%

 

$

2,776

 

 

$

-

 

   1301 Avenue of the Americas

 

 

360,000

 

 

Jul-2021

 

Aug-2023

 

LIBOR

 

 

2.00

%

 

 

-

 

 

 

6,123

 

Total interest rate cap assets designated as cash flow hedges (included in "other assets")

$

2,776

 

 

$

6,123

 

 

 
v3.23.3
Accumulated Other Comprehensive Income (Tables)
 9 Months Ended
Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Summary of Changes in Accumulated Other Comprehensive Income by Component

The following table sets forth changes in accumulated other comprehensive income by component for the three and nine months ended September 30, 2023 and 2022, respectively, including amounts attributable to noncontrolling interests in the Operating Partnership.

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

(Amounts in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Amount of income related to the cash flow hedges recognized
   in other comprehensive (loss) income (1)

$

1,804

 

 

$

12,134

 

 

$

6,254

 

 

$

36,786

 

Amounts reclassified from accumulated other comprehensive
   income decreasing interest and debt expense (1)

 

(7,909

)

 

 

(2,338

)

 

 

(23,884

)

 

 

(2,336

)

Amount of income related to unconsolidated joint ventures
   recognized in other comprehensive (loss) income (2)

 

1,055

 

 

 

6,150

 

 

 

4,196

 

 

 

18,046

 

Amounts reclassified from accumulated other comprehensive
   income (decreasing) increasing loss from unconsolidated joint
   ventures (2)

 

(2,589

)

 

 

(443

)

 

 

(6,899

)

 

 

1,063

 

 

(1)
Represents amounts related to interest rate swaps with an aggregate notional value of $500,000 and interest rate caps with an aggregate notional value of $360,000, which were designated as cash flow hedges.
(2)
Primarily represents amounts related to an interest rate swap with a notional value of $402,000, which was designated as a cash flow hedge.
v3.23.3
Variable Interest Entities ("VIEs") (Tables)
 9 Months Ended
Sep. 30, 2023
Consolidated VIEs [Member]  
Summary of Assets and Liabilities of Consolidated Variable Interest Entities The following table summarizes the assets and liabilities of consolidated VIEs of the Operating Partnership.

 

 

 

As of

 

(Amounts in thousands)

 

September 30, 2023

 

 

December 31, 2022

 

Real estate, net

 

$

3,306,722

 

 

$

3,364,482

 

Cash and cash equivalents and restricted cash

 

 

140,963

 

 

 

144,446

 

Accounts and other receivables

 

 

9,959

 

 

 

13,647

 

Real estate related fund investments

 

 

68,225

 

 

 

105,369

 

Investments in unconsolidated joint ventures

 

 

90,865

 

 

 

77,961

 

Deferred rent receivable

 

 

206,500

 

 

 

197,658

 

Deferred charges, net

 

 

46,841

 

 

 

49,485

 

Intangible assets, net

 

 

42,404

 

 

 

50,553

 

Other assets

 

 

20,958

 

 

 

9,860

 

Total VIE assets

 

$

3,933,437

 

 

$

4,013,461

 

 

 

 

 

 

 

 

Notes and mortgages payable, net

 

$

2,449,917

 

 

$

2,489,902

 

Accounts payable and accrued expenses

 

 

52,873

 

 

 

61,492

 

Intangible liabilities, net

 

 

18,369

 

 

 

21,936

 

Other liabilities

 

 

4,649

 

 

 

6,051

 

Total VIE liabilities

 

$

2,525,808

 

 

$

2,579,381

 
Unconsolidated VIEs [Member]  
Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments The following table summarizes our investments in these unconsolidated real estate related funds and the maximum risk of loss from these investments.

 

 

 

 

As of

 

 

(Amounts in thousands)

 

September 30, 2023

 

 

December 31, 2022

 

 

Investments

 

$

4,537

 

 

$

3,411

 

 

Asset management fees and other receivables

 

 

-

 

 

 

21

 

 

Maximum risk of loss

 

$

4,537

 

 

$

3,432

 

 
v3.23.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Financial Assets Measured at Fair Value

The following table summarizes the fair value of our financial assets that are measured at fair value on our consolidated balance sheets as of the dates set forth below, based on their levels in the fair value hierarchy.

 

 

As of September 30, 2023

 

(Amounts in thousands)

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Real estate related fund investments

$

68,225

 

 

$

-

 

 

$

-

 

 

$

68,225

 

Interest rate swap assets (included in "other assets")

 

20,865

 

 

 

-

 

 

 

20,865

 

 

 

-

 

Interest rate cap assets (included in "other assets")

 

2,776

 

 

 

-

 

 

 

2,776

 

 

 

-

 

Total assets

$

91,866

 

 

$

-

 

 

$

23,641

 

 

$

68,225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2022

 

(Amounts in thousands)

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Real estate related fund investments

$

105,369

 

 

$

-

 

 

$

-

 

 

$

105,369

 

Interest rate swap assets (included in "other assets")

 

32,681

 

 

 

-

 

 

 

32,681

 

 

 

-

 

Interest rate cap assets (included in "other assets")

 

6,123

 

 

 

-

 

 

 

6,123

 

 

 

-

 

Total assets

$

144,173

 

 

$

-

 

 

$

38,804

 

 

$

105,369

 
Summary of Changes in Fair Value of Real Estate Related Fund Investments in Level 3

The table below summarizes the changes in the fair value of real estate related fund investments that are classified as Level 3 for the three and nine months ended September 30, 2023.

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

(Amounts in thousands)

 

September 30, 2023

 

 

September 30, 2023

 

 

Beginning balance

 

$

66,606

 

 

$

105,369

 

 

Additional investments

 

 

1,591

 

 

 

9,631

 

 

Net realized losses

 

 

-

 

 

 

(1,224

)

 

Net unrealized gains (losses)

 

 

28

 

 

 

(45,551

)

(1)

Ending balance

 

$

68,225

 

 

$

68,225

 

 

 

 

(1)
Primarily represents an unrealized loss on a mezzanine loan investment based on a negotiated transaction price.
Summary of Carrying Amounts and Fair Value of Financial Instruments The following table summarizes the carrying amounts and fair value of these financial instruments as of the dates set forth below.

 

 

As of September 30, 2023

 

 

As of December 31, 2022

 

(Amounts in thousands)

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Notes and mortgages payable

$

3,817,050

 

 

$

3,442,036

 

 

$

3,858,000

 

 

$

3,566,096

 

Revolving credit facility

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total liabilities

$

3,817,050

 

 

$

3,442,036

 

 

$

3,858,000

 

 

$

3,566,096

 
v3.23.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Schedule of Rental Revenues

The following table sets forth the details of our rental revenue.

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands)

2023

 

 

2022

 

 

2023

 

 

2022

 

Rental revenue:

 

 

 

 

 

 

 

 

 

 

 

Fixed

$

160,107

 

 

$

162,444

 

 

$

474,931

 

 

$

480,766

 

Variable

 

22,408

 

 

 

16,806

 

 

 

54,803

 

 

 

45,649

 

Total rental revenue

$

182,515

 

 

$

179,250

 

 

$

529,734

 

 

$

526,415

 

 
Schedule of Future Undiscounted Cash Flows Under Non-Cancellable Operating Leases

The following table is a schedule of future undiscounted cash flows under non-cancellable operating leases in effect as of September 30, 2023, for the three-month period from October 1, 2023 through December 31, 2023, and each of the five succeeding years and thereafter commencing January 1, 2024.

 

 

(Amounts in thousands)

 

 

2023

 

$

156,143

 

2024

 

 

618,325

 

2025

 

 

577,127

 

2026

 

 

497,057

 

2027

 

 

436,276

 

2028

 

 

434,292

 

Thereafter

 

 

1,897,555

 

Total

 

$

4,616,775

 
v3.23.3
Fee and Other Income (Tables)
 9 Months Ended
Sep. 30, 2023
Disaggregation of Revenue [Abstract]  
Summary of Fee and Other Income

The following table sets forth the details of our fee and other income.

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands)

2023

 

 

2022

 

 

2023

 

 

2022

 

Fee income:

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

$

2,459

 

 

$

3,166

 

 

$

6,960

 

 

$

9,138

 

Property management

 

 

1,810

 

 

 

1,849

 

 

 

5,503

 

 

 

6,171

 

Acquisition, disposition, leasing and other

 

304

 

 

 

117

 

 

 

1,643

 

 

 

7,785

 

Total fee income

 

4,573

 

 

 

5,132

 

 

 

14,106

 

 

 

23,094

 

Other income (1)

 

2,093

 

 

 

2,765

 

 

 

6,477

 

 

 

6,840

 

Total fee and other income

$

6,666

 

 

$

7,897

 

 

$

20,583

 

 

$

29,934

 

 

 

(1)
Primarily comprised of (i) tenant requested services, including cleaning, overtime heating and cooling and (ii) parking income.
v3.23.3
Interest and Debt Expense (Tables)
 9 Months Ended
Sep. 30, 2023
Interest and Debt Expense [Abstract]  
Details of Interest and Debt Expense

The following table sets forth the details of interest and debt expense.

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Interest expense

 

$

37,549

 

 

$

35,412

 

 

$

107,810

 

 

$

102,190

 

Amortization of deferred financing costs

 

 

1,553

 

 

 

1,537

 

 

 

4,630

 

 

 

4,614

 

Total interest and debt expense

 

$

39,102

 

 

$

36,949

 

 

$

112,440

 

 

$

106,804

 
v3.23.3
Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Summary of Computation of Earnings Per Share

The following table summarizes our net (loss) income and the number of common shares used in the computation of basic and diluted income per common share, which includes the weighted average number of common shares outstanding and the effect of dilutive potential common shares, if any.

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands, except per share amounts)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to common stockholders

 

$

(8,385

)

 

$

(1,537

)

 

$

(54,194

)

 

$

1,474

 

Earnings allocated to unvested participating securities

 

 

(10

)

 

 

(21

)

 

 

(40

)

 

 

(64

)

Numerator for (loss) income per common share -
   basic and diluted

 

$

(8,395

)

 

$

(1,558

)

 

$

(54,234

)

 

$

1,410

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Denominator for basic (loss) income per common share -
   weighted average shares

 

 

217,043

 

 

 

224,865

 

 

 

216,872

 

 

 

222,229

 

Effect of dilutive stock-based compensation plans (1)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

34

 

Denominator for diluted (loss) income per common share -
   weighted average shares

 

 

217,043

 

 

 

224,865

 

 

 

216,872

 

 

 

222,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income per common share - basic and diluted

 

$

(0.04

)

 

$

(0.01

)

 

$

(0.25

)

 

$

0.01

 

 

(1)
The effect of dilutive securities excludes 18,470 and 18,041 weighted average share equivalents for the three months ended September 30, 2023 and 2022, respectively, and 17,804 and 20,889 weighted average share equivalents for the nine months ended September 30, 2023 and 2022, respectively, as their effect was anti-dilutive.
v3.23.3
Segments (Tables)
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Schedule of NOI for Each Reportable Segment Information

The following tables provide Net Operating Income (“NOI”) for each reportable segment for the periods set forth below.

 

 

 

For the Three Months Ended September 30, 2023

 

(Amounts in thousands)

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Property-related revenues

 

$

184,608

 

 

$

118,749

 

 

$

66,252

 

 

$

(393

)

Property-related operating expenses

 

 

(75,502

)

 

 

(52,470

)

 

 

(22,447

)

 

 

(585

)

NOI from unconsolidated joint ventures
   (excluding One Steuart Lane)

 

 

9,233

 

 

 

3,376

 

 

 

5,858

 

 

 

(1

)

NOI (1)

 

$

118,339

 

 

$

69,655

 

 

$

49,663

 

 

$

(979

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2022

 

(Amounts in thousands)

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Property-related revenues

 

$

182,015

 

 

$

117,431

 

 

$

64,667

 

 

$

(83

)

Property-related operating expenses

 

 

(72,845

)

 

 

(52,421

)

 

 

(19,496

)

 

 

(928

)

NOI from unconsolidated joint ventures
   (excluding One Steuart Lane)

 

 

11,540

 

 

 

3,556

 

 

 

7,837

 

 

 

147

 

NOI (1)

 

$

120,710

 

 

$

68,566

 

 

$

53,008

 

 

$

(864

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2023

 

(Amounts in thousands)

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Property-related revenues

 

$

536,211

 

 

$

342,812

 

 

$

194,564

 

 

$

(1,165

)

Property-related operating expenses

 

 

(216,889

)

 

 

(150,676

)

 

 

(64,529

)

 

 

(1,684

)

NOI from unconsolidated joint ventures
   (excluding One Steuart Lane)

 

 

30,334

 

 

 

10,143

 

 

 

20,133

 

 

 

58

 

NOI (1)

 

$

349,656

 

 

$

202,279

 

 

$

150,168

 

 

$

(2,791

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2022

 

(Amounts in thousands)

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Property-related revenues

 

$

533,255

 

 

$

349,136

 

 

$

185,798

 

 

$

(1,679

)

Property-related operating expenses

 

 

(207,320

)

 

 

(148,779

)

 

 

(55,369

)

 

 

(3,172

)

NOI from unconsolidated joint ventures
   (excluding One Steuart Lane)

 

 

34,359

 

 

 

9,902

 

 

 

24,162

 

 

 

295

 

NOI (1)

 

$

360,294

 

 

$

210,259

 

 

$

154,591

 

 

$

(4,556

)

 

 

(1)
NOI is used to measure the operating performance of our properties. NOI consists of rental revenue (which includes property rentals, tenant reimbursements and lease termination income) and certain other property-related revenue less operating expenses (which includes property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI and, accordingly, our presentation of NOI may not be comparable to other real estate companies.
Schedule of Reconciliation of NOI to Net (Loss) Income Attributable to Common Stockholders

The following table provides a reconciliation of NOI to net (loss) income attributable to common stockholders for the periods set forth below.

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands)

2023

 

 

2022

 

 

2023

 

 

2022

 

NOI

$

118,339

 

 

$

120,710

 

 

$

349,656

 

 

$

360,294

 

Add (subtract) adjustments to arrive to net (loss) income:

 

 

 

 

 

 

 

 

 

 

 

Fee income

 

4,573

 

 

 

5,132

 

 

 

14,106

 

 

 

23,094

 

Depreciation and amortization expense

 

(60,263

)

 

 

(58,284

)

 

 

(181,778

)

 

 

(171,306

)

General and administrative expenses

 

(15,460

)

 

 

(13,150

)

 

 

(46,307

)

 

 

(45,501

)

Income (loss) from real estate related fund investments

 

2,060

 

 

 

-

 

 

 

(37,034

)

 

 

-

 

NOI from unconsolidated joint ventures (excluding
   One Steuart Lane)

 

(9,233

)

 

 

(11,540

)

 

 

(30,334

)

 

 

(34,359

)

Loss from unconsolidated joint ventures

 

(28,974

)

 

 

(5,797

)

 

 

(63,138

)

 

 

(15,326

)

Interest and other income, net

 

4,115

 

 

 

1,580

 

 

 

10,007

 

 

 

2,607

 

Interest and debt expense

 

(39,102

)

 

 

(36,949

)

 

 

(112,440

)

 

 

(106,804

)

Other, net

 

(853

)

 

 

195

 

 

 

(1,190

)

 

 

244

 

(Loss) income before income taxes

 

(24,798

)

 

 

1,897

 

 

 

(98,452

)

 

 

12,943

 

Income tax expense

 

(263

)

 

 

(673

)

 

 

(1,124

)

 

 

(1,559

)

Net (loss) income

 

(25,061

)

 

 

1,224

 

 

 

(99,576

)

 

 

11,384

 

Less net (income) loss attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(4,887

)

 

 

(4,179

)

 

 

(15,879

)

 

 

(12,383

)

Consolidated real estate related funds

 

20,934

 

 

 

1,309

 

 

 

57,412

 

 

 

2,677

 

Operating Partnership

 

629

 

 

 

109

 

 

 

3,849

 

 

 

(204

)

Net (loss) income attributable to common stockholders

$

(8,385

)

 

$

(1,537

)

 

$

(54,194

)

 

$

1,474

 
Schedule of Total Assets for Each Reportable Segments Information

The following table provides the total assets for each of our reportable segments as of the dates set forth below.

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets as of:

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

September 30, 2023

 

$

8,288,559

 

 

$

5,208,082

 

 

$

2,575,677

 

 

$

504,800

 

December 31, 2022

 

 

8,453,254

 

 

 

5,311,636

 

 

 

2,631,265

 

 

 

510,353

 
v3.23.3
Organization and Business - Additional Information (Details)
ft² in Millions
 9 Months Ended
Sep. 30, 2023
ft²
Properties
Real Estate Properties [Line Items]  
Number of Real Estate Properties | Properties 18
Area of office and retail properties 13.8
New York [Member]  
Real Estate Properties [Line Items]  
Number of Real Estate Properties | Properties 8
Area of office and retail properties 8.7
New York [Member] | Office Space [Member]  
Real Estate Properties [Line Items]  
Area of office and retail properties 8.2
New York [Member] | Retail, Theater and Amenity Space [Member]  
Real Estate Properties [Line Items]  
Area of office and retail properties 0.5
San Francisco [Member]  
Real Estate Properties [Line Items]  
Number of Real Estate Properties | Properties 6
Area of office and retail properties 4.3
San Francisco [Member] | Office Space [Member]  
Real Estate Properties [Line Items]  
Area of office and retail properties 4.1
San Francisco [Member] | Retail Space [Member]  
Real Estate Properties [Line Items]  
Area of office and retail properties 0.2
New York And Washington, D.C [Member]  
Real Estate Properties [Line Items]  
Number of real estate properties managed | Properties 4
Area of office and retail properties 0.8
Variable Interest Entities [Member] | Paramount Group Operating Partnership [Member]  
Real Estate Properties [Line Items]  
Percentage of ownership in operating partnership 91.80%
v3.23.3
Consolidated Real Estate Related Funds - Additional Information (Details)
 9 Months Ended
Sep. 30, 2023
Dec. 12, 2022
Dec. 11, 2022
One Steuart Lane [Member]      
Real Estate Related Fund [Line Items]      
Equity method economic interest percentage 2.60%    
Fund X [Member]      
Real Estate Related Fund [Line Items]      
Equity method paramount ownership percentage     8.20%
Increase in ownership interest percentage   13.00%  
Residential Development Fund's [Member]      
Real Estate Related Fund [Line Items]      
Equity method paramount ownership percentage 7.40%    
Interest not owned as noncontrolling interest in real estate related funds 92.60%    
Residential Development Fund's [Member] | One Steuart Lane [Member]      
Real Estate Related Fund [Line Items]      
Equity method paramount ownership percentage 35.00%    
v3.23.3
Consolidated Real Estate Related Funds - Summary of Income From Real Estate Related Fund Investments (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Real Estate Related Fund [Line Items]        
Income (loss) from real estate related fund investments $ 2,060 $ 0 $ (37,034) $ 0
Net (loss) income attributable to common stockholders (8,385) $ (1,537) (54,194) $ 1,474
Fund X [Member]        
Real Estate Related Fund [Line Items]        
Net investment income 2,032   9,741  
Net realized losses     (1,224)  
Net unrealized gains (losses) 28   (45,551)  
Income (loss) from real estate related fund investments 2,060   (37,034)  
Less: noncontrolling interests in consolidated real estate related funds (1,517)   33,056  
Net (loss) income attributable to common stockholders $ 543   $ (3,978)  
v3.23.3
Investments in Unconsolidated Real Estate Related Funds - Additional Information (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Dec. 11, 2022
Real Estate [Line Items]            
Investments in the unconsolidated real estate related funds $ 4,537,000   $ 4,537,000   $ 3,411,000  
(Loss) income from unconsolidated real estate related funds $ (721,000) $ 300,000 $ (867,000) $ 625,000    
Fund VIII [Member]            
Real Estate [Line Items]            
Alternative Investment Fund Ownership Interest Percentage 1.30%   1.30%      
Fund X [Member]            
Real Estate [Line Items]            
Alternative Investment Fund Ownership Interest Percentage           8.20%
v3.23.3
Investments in Unconsolidated Joint Ventures - Summary of Investments and Income from Investments In Unconsolidated Joint Ventures (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Schedule Of Equity Method Investments [Line Items]          
Investments in unconsolidated joint ventures $ 368,024   $ 368,024   $ 393,503
Loss from unconsolidated joint ventures $ (28,974) $ (5,797) $ (63,138) $ (15,326)  
712 Fifth Avenue [Member]          
Schedule Of Equity Method Investments [Line Items]          
Equity method paramount ownership percentage 50.00%   50.00%    
Market Center [Member]          
Schedule Of Equity Method Investments [Line Items]          
Equity method paramount ownership percentage 67.00%   67.00%    
Investments in unconsolidated joint ventures $ 181,437   $ 181,437   192,948
Loss from unconsolidated joint ventures $ (3,248) (2,811) $ (8,482) (7,661)  
55 Second Street [Member]          
Schedule Of Equity Method Investments [Line Items]          
Equity method paramount ownership percentage 44.10%   44.10%    
Investments in unconsolidated joint ventures $ 83,560   $ 83,560   85,340
Loss from unconsolidated joint ventures $ (642) (825) $ (1,780) (2,296)  
111 Sutter Street [Member]          
Schedule Of Equity Method Investments [Line Items]          
Equity method paramount ownership percentage 49.00%   49.00%    
Loss from unconsolidated joint ventures   (748)   (2,207)  
1600 Broadway [Member]          
Schedule Of Equity Method Investments [Line Items]          
Equity method paramount ownership percentage 9.20%   9.20%    
Investments in unconsolidated joint ventures $ 8,762   $ 8,762   9,113
Loss from unconsolidated joint ventures $ 1 30 $ 1 (38)  
60 Wall Street [Member]          
Schedule Of Equity Method Investments [Line Items]          
Equity method paramount ownership percentage 5.00%   5.00%    
Investments in unconsolidated joint ventures         25,034
Loss from unconsolidated joint ventures   (23) $ (25,001) 42  
One Steuart Lane [Member]          
Schedule Of Equity Method Investments [Line Items]          
Equity method paramount ownership percentage 35.00%   35.00%    
Investments in unconsolidated joint ventures $ 90,865   $ 90,865   77,961
Loss from unconsolidated joint ventures $ (25,037) (1,516) $ (27,811) (3,303)  
Oder-Center, Germany [Member]          
Schedule Of Equity Method Investments [Line Items]          
Equity method paramount ownership percentage 9.50%   9.50%    
Investments in unconsolidated joint ventures $ 3,400   $ 3,400   $ 3,107
Loss from unconsolidated joint ventures $ (48) $ 96 $ (65) $ 137  
v3.23.3
Investments in Unconsolidated Joint Ventures - Summary of Investments and Income from Investments In Unconsolidated Joint Ventures (Parenthetical) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Jun. 30, 2023
Sep. 30, 2023
Dec. 31, 2022
May 31, 2023
Residential Development Fund's [Member]            
Schedule Of Equity Method Investments [Line Items]            
Proportionate share of impairment loss on for sale condominium units $ 23,942          
712 Fifth Avenue [Member]            
Schedule Of Equity Method Investments [Line Items]            
Distributions made in excess of share of earnings recognized negative basis       $ 11,770 $ 13,427  
Income (Loss) of investment accounted under equity method accounting       3,313    
Proportionate share of income (loss) of equity method investment not recognized       $ 1,657    
Equity method paramount ownership percentage 50.00%     50.00%    
55 Second Street [Member]            
Schedule Of Equity Method Investments [Line Items]            
Difference between carrying amount of investment and equity $ 463     $ 463    
Equity method paramount ownership percentage 44.10%     44.10%    
1600 Broadway [Member]            
Schedule Of Equity Method Investments [Line Items]            
Difference between carrying amount of investment and equity $ 307     $ 307    
Equity method paramount ownership percentage 9.20%     9.20%    
60 Wall Street [Member]            
Schedule Of Equity Method Investments [Line Items]            
Distributions made in excess of share of earnings recognized negative basis   $ 668   $ 1,051    
Income (Loss) of investment accounted under equity method accounting $ (7,661)          
Proportionate share of income (loss) of equity method investment not recognized $ (383)          
Equity method paramount ownership percentage 5.00%     5.00%    
Proportionate share of real estate impairment loss   24,734 $ 24,734      
Real estate impairment loss   $ 455,893 $ 455,893      
60 Wall Street [Member] | Nonrecourse [Member]            
Schedule Of Equity Method Investments [Line Items]            
Defaulted on non-recourse mortgage loan           $ 575,000
One Steuart Lane [Member]            
Schedule Of Equity Method Investments [Line Items]            
Difference between carrying amount of investment and equity $ 640     $ 640    
Equity method paramount ownership percentage 35.00%     35.00%    
Equity method economic interest percentage       2.60%    
Impairment loss on for sale condominium units $ 68,407          
One Steuart Lane [Member] | Residential Development Fund's [Member]            
Schedule Of Equity Method Investments [Line Items]            
Equity method paramount ownership percentage 7.40%     7.40%    
Oder-Center, Germany [Member]            
Schedule Of Equity Method Investments [Line Items]            
Difference between carrying amount of investment and equity $ 4,215     $ 4,215    
Equity method paramount ownership percentage 9.50%     9.50%    
111 Sutter Street [Member]            
Schedule Of Equity Method Investments [Line Items]            
Distributions made in excess of share of earnings recognized negative basis       $ 5,920 $ 107  
Income (Loss) of investment accounted under equity method accounting       (11,862)    
Proportionate share of income (loss) of equity method investment not recognized       $ (5,813)    
Equity method paramount ownership percentage 49.00%     49.00%    
v3.23.3
Investments in Unconsolidated Joint Ventures - Summary of Financial Information of Unconsolidated Joint Ventures (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Schedule Of Equity Method Investments [Line Items]          
Total assets [1] $ 8,288,559   $ 8,288,559   $ 8,453,254
Total liabilities [1] 3,978,594   3,978,594   4,042,488
Equity 3,429,212   3,429,212   3,592,291
Total liabilities and equity 8,288,559   8,288,559   8,453,254
Rental revenue 182,515 $ 179,250 529,734 $ 526,415  
Other income 2,093 2,765 6,477 6,840  
Total revenues 189,181 187,147 550,317 556,349  
Operating 75,502 72,845 216,889 207,320  
Depreciation and amortization 60,263 58,284 181,778 171,306  
Total expenses 151,357 144,384 445,297 424,508  
Interest and other income 4,115 1,580 10,007 2,607  
Interest and debt expense (39,102) (36,949) (112,440) (106,804)  
Loss before income taxes (24,798) 1,897 (98,452) 12,943  
Income tax expense (263) (673) (1,124) (1,559)  
Net (loss) income attributable to common stockholders (8,385) (1,537) (54,194) 1,474  
Unconsolidated Joint Ventures [Member]          
Schedule Of Equity Method Investments [Line Items]          
Real estate, net 1,974,734   1,974,734   2,377,084
Cash and cash equivalents and restricted cash 208,778   208,778   252,540
Intangible assets, net 55,295   55,295   69,599
For-sale residential condominium units [2] 250,000   250,000   322,232
Other assets 84,647   84,647   87,054
Total assets 2,573,454   2,573,454   3,108,509
Notes and mortgages payable, net 1,740,516   1,740,516   1,834,916
Intangible liabilities, net 6,184   6,184   10,972
Other liabilities 81,698   81,698   50,783
Total liabilities 1,828,398   1,828,398   1,896,671
Equity 745,056   745,056   1,211,838
Total liabilities and equity 2,573,454   2,573,454   $ 3,108,509
Rental revenue 38,629 41,145 119,235 153,181  
Other income [3] 874 15,250 6,492 65,276  
Total revenues 39,503 56,395 125,727 218,457  
Operating [3] 23,941 34,234 73,632 129,035  
Depreciation and amortization 16,863 17,734 52,341 68,140  
Total expenses 40,804 51,968 125,973 197,175  
Interest and other income 734 471 2,226 487  
Interest and debt expense (19,895) (13,967) (53,256) (47,900)  
Impairment loss [4] (68,407)   (524,300)    
Loss before income taxes (88,869) (9,069) (575,576) (26,131)  
Income tax expense (2) (11) (32) (54)  
Net (loss) income attributable to common stockholders $ (88,871) $ (9,080) $ (575,608) $ (26,185)  
[1] Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 91.8% as of September 30, 2023. As of September 30, 2023, the assets and liabilities of the Operating Partnership include $3,933,437 and $2,525,808 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities (“VIEs”).
[2] Represents residential condominium units at One Steuart Lane that are available for sale.
[3] Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.
[4] Includes an impairment loss related to condominium units at One Steuart Lane in the three and nine months ended September 30, 2023 and a real estate impairment loss related to 60 Wall Street in the nine months ended September 30, 2023. See notes 4 and 6 on page 13.
v3.23.3
Intangible Assets and Intangible Liabilities - Summary of Intangible Assets and Liabilities (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Intangible assets:          
Gross amount $ 268,017   $ 268,017   $ 337,104
Accumulated amortization (193,626)   (193,626)   (246,723)
Intangible assets, Net 74,391   74,391   90,381
Intangible liabilities:          
Gross amount 136,820   136,820   138,726
Accumulated amortization (106,839)   (106,839)   (102,533)
Intangible Liabilities, Net 29,981   29,981   $ 36,193
Amortization of above and below-market leases, net (component of "rental revenue")     (3,929) $ (589)  
Leases, Acquired-in-Place, Market Adjustment [Member]          
Intangible liabilities:          
Amortization of above and below-market leases, net (component of "rental revenue") 1,445 $ (84) 3,929 589  
Leases, Acquired-in-Place [Member]          
Intangible liabilities:          
Amortization of acquired in-place leases (component of "depreciation and amortization") $ 4,635 $ 5,401 $ 13,706 $ 16,344  
v3.23.3
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases and In Place Leases (Details)
$ in Thousands
Sep. 30, 2023
USD ($)
Finite Lived Intangible Assets [Line Items]  
2023 $ 1,446
2024 5,862
2025 4,541
2026 2,711
2027 2,398
2028 2,318
Leases, Acquired-in-Place [Member]  
Finite Lived Intangible Assets [Line Items]  
2023 4,632
2024 14,915
2025 10,394
2026 7,785
2027 7,140
2028 $ 6,868
v3.23.3
Debt - Additional Information (Details)
 9 Months Ended 12 Months Ended
Sep. 27, 2023
USD ($)
ft²
Sep. 26, 2023
Sep. 30, 2023
USD ($)
Dec. 31, 2022
Debt Instrument [Line Items]        
Proceeds from new loan     $ 232,050,000  
Loan repayment amount     $ 273,000,000  
Debt instrument effective percentage     3.88%  
300 Mission Street [Member]        
Debt Instrument [Line Items]        
Ownership percentage of Property 31.10%   31.10% 31.10%
Proceeds from new loan $ 232,050,000      
Loan repayment amount $ 273,000,000      
Number of square foot | ft² 655,000      
Debt instrument effective percentage 4.50% 3.65%    
Long term debt maturity year and month 2026-10 2023-10    
v3.23.3
Debt - Summary of Outstanding Debt (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 27, 2023
Sep. 26, 2023
Dec. 31, 2022
Debt Instrument [Line Items]        
Notes and mortgages payable, Interest Rate 3.88%      
Notes and mortgages payable $ 3,817,050     $ 3,858,000
Credit Facility 0     0
Less: unamortized deferred financing costs (14,717)     (17,682)
Total notes and mortgages payable, net $ 3,802,333     3,840,318
Credit Facility With Variable Rate [Member] | Revolving Credit Facility [Member]        
Debt Instrument [Line Items]        
Maturity date of debt 2026-03      
Credit Facility With Variable Rate [Member] | Secured Overnight Financing Rate (SOFR) [Member] | Revolving Credit Facility [Member]        
Debt Instrument [Line Items]        
Fixed/Variable Rate 1.15%      
1633 Broadway [Member] | Mortgages and Notes Payable with Fixed Rate [Member]        
Debt Instrument [Line Items]        
Maturity date of debt 2029-12      
Notes and mortgages payable, Interest Rate 2.99%      
Notes and mortgages payable $ 1,250,000     1,250,000
One Market Plaza [Member] | Mortgages and Notes Payable with Fixed Rate [Member]        
Debt Instrument [Line Items]        
Maturity date of debt 2024-02      
Notes and mortgages payable, Interest Rate 4.03%      
Notes and mortgages payable $ 975,000     975,000
1301 Avenue of the Americas [Member]        
Debt Instrument [Line Items]        
Notes and mortgages payable, Interest Rate 4.87%      
Notes and mortgages payable $ 860,000     860,000
1301 Avenue of the Americas [Member] | Mortgages and Notes Payable with Fixed Rate [Member]        
Debt Instrument [Line Items]        
Maturity date of debt 2026-08      
Notes and mortgages payable, Interest Rate 2.49%      
Notes and mortgages payable $ 500,000     500,000
1301 Avenue of the Americas [Member] | Mortgages and Notes Payable with Variable Rate [Member]        
Debt Instrument [Line Items]        
Maturity date of debt 2026-08      
Notes and mortgages payable, Interest Rate 8.18%      
Notes and mortgages payable $ 360,000     360,000
1301 Avenue of the Americas [Member] | Mortgages and Notes Payable with Variable Rate [Member] | Secured Overnight Financing Rate (SOFR) [Member]        
Debt Instrument [Line Items]        
Fixed/Variable Rate 3.68%      
31 West 52nd Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member]        
Debt Instrument [Line Items]        
Maturity date of debt 2026-06      
Notes and mortgages payable, Interest Rate 3.80%      
Notes and mortgages payable $ 500,000     500,000
300 Mission Street [Member]        
Debt Instrument [Line Items]        
Notes and mortgages payable, Interest Rate   4.50% 3.65%  
300 Mission Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member]        
Debt Instrument [Line Items]        
Maturity date of debt 2026-10      
Notes and mortgages payable, Interest Rate 4.50%      
Notes and mortgages payable $ 232,050     $ 273,000
v3.23.3
Debt - Summary of Outstanding Debt (Parenthetical) (Details)
 9 Months Ended 12 Months Ended
Sep. 27, 2023
Sep. 30, 2023
Dec. 31, 2022
1633 Broadway [Member]      
Debt Instrument [Line Items]      
Ownership percentage of Property   90.00% 90.00%
One Market Plaza [Member]      
Debt Instrument [Line Items]      
Ownership percentage of Property   49.00% 49.00%
300 Mission Street [Member]      
Debt Instrument [Line Items]      
Ownership percentage of Property 31.10% 31.10% 31.10%
1301 Avenue of the Americas [Member] | Secured Overnight Financing Rate (SOFR) [Member] | Mortgages and Notes Payable with Variable Rate [Member]      
Debt Instrument [Line Items]      
Capped interest rate   4.50% 4.50%
v3.23.3
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Jul. 29, 2021
Derivative [Line Items]            
Notes and mortgages payable $ 3,817,050,000   $ 3,817,050,000   $ 3,858,000,000  
Changes in fair value of these interest rate swaps and interest rate caps 1,804,000 $ 12,134,000 6,254,000 $ 36,786,000    
1301 Avenue of the Americas [Member]            
Derivative [Line Items]            
Notes and mortgages payable           $ 860,000,000
Interest Rate Swap [Member] | Secured Overnight Financing Rate (SOFR) [Member] | 1301 Avenue of the Americas [Member]            
Derivative [Line Items]            
Derivative, notional amount $ 500,000,000   $ 500,000,000      
Derivative fixed interest rate 0.49%   0.49%      
Interest Rate Cap [Member] | Secured Overnight Financing Rate (SOFR) [Member] | 1301 Avenue of the Americas [Member]            
Derivative [Line Items]            
Derivative, notional amount $ 360,000,000   $ 360,000,000      
Derivative fixed interest rate 4.50%   4.50%      
Interest Rate Cap [Member] | London Interbank Offered Rate (LIBOR) [Member] | 1301 Avenue of the Americas [Member]            
Derivative [Line Items]            
Derivative, notional amount $ 360,000,000   $ 360,000,000      
Derivative fixed interest rate 2.00%   2.00%      
Designated As Hedging Instrument [Member] | | Cash Flow Hedging [Member]            
Derivative [Line Items]            
Changes in fair value of these interest rate swaps and interest rate caps $ (6,105,000) $ 9,796,000 $ (17,630,000) $ 34,450,000    
Amount to be recognized in accumulated other comprehensive income (loss) reclassified to interest expense for next twelve months     20,826,000      
Designated As Hedging Instrument [Member] | | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | London Interbank Offered Rate (LIBOR) [Member] | 1301 Avenue of the Americas [Member]            
Derivative [Line Items]            
Derivative, notional amount $ 500,000,000   $ 500,000,000      
Derivative fixed interest rate 0.46%   0.46%      
Designated As Hedging Instrument [Member] | | Interest Rate Cap [Member] | Cash Flow Hedging [Member] | Secured Overnight Financing Rate (SOFR) [Member] | 1301 Avenue of the Americas [Member]            
Derivative [Line Items]            
Aggregate notional percentage 4.50%   4.50%      
Designated As Hedging Instrument [Member] | | Interest Rate Cap [Member] | Cash Flow Hedging [Member] | London Interbank Offered Rate (LIBOR) [Member] | 1301 Avenue of the Americas [Member]            
Derivative [Line Items]            
Derivative, notional amount $ 360,000,000   $ 360,000,000      
Aggregate notional percentage 2.00%   2.00%      
v3.23.3
Derivative Instruments and Hedging Activities - Schedule of Interest Rate Swaps and Interest Rate Caps (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Interest Rate Swap [Member]    
Derivative [Line Items]    
Total interest rate swap and interest rate caps assets designated as cash flow hedges (included in "other assets") $ 20,865 $ 32,681
Interest Rate Swap [Member] | 1301 Avenue of the Americas [Member] | Secured Overnight Financing Rate (SOFR) [Member]    
Derivative [Line Items]    
Notional Amount $ 500,000  
Effective Date Jul. 31, 2021  
Maturity Date Aug. 31, 2024  
Strike Rate 0.49%  
Total interest rate swap and interest rate caps assets designated as cash flow hedges (included in "other assets") $ 20,865 32,681
Interest Rate Cap [Member]    
Derivative [Line Items]    
Total interest rate swap and interest rate caps assets designated as cash flow hedges (included in "other assets") 2,776 6,123
Interest Rate Cap [Member] | 1301 Avenue of the Americas [Member] | Secured Overnight Financing Rate (SOFR) [Member]    
Derivative [Line Items]    
Notional Amount $ 360,000  
Effective Date Aug. 31, 2023  
Maturity Date Aug. 31, 2024  
Strike Rate 4.50%  
Total interest rate swap and interest rate caps assets designated as cash flow hedges (included in "other assets") $ 2,776 0
Interest Rate Cap [Member] | 1301 Avenue of the Americas [Member] | London Interbank Offered Rate (LIBOR) [Member]    
Derivative [Line Items]    
Notional Amount $ 360,000  
Effective Date Jul. 31, 2021  
Maturity Date Aug. 31, 2023  
Strike Rate 2.00%  
Total interest rate swap and interest rate caps assets designated as cash flow hedges (included in "other assets")   $ 6,123
v3.23.3
Equity - Additional Information (Details) - USD ($)
 3 Months Ended 9 Months Ended 36 Months Ended
Sep. 30, 2022
Sep. 30, 2022
Dec. 31, 2022
Sep. 30, 2023
Nov. 05, 2019
Class Of Stock [Line Items]          
Common stock shares authorized amount         $ 200,000,000
Stock repurchased, price per share     $ 7.65    
Stock repurchased, value $ 21,313,000 $ 21,313,000 $ 185,000,000    
Stock repurchase amount available for future repurchase       $ 15,000,000  
Common Stock [Member]          
Class Of Stock [Line Items]          
Stock repurchased 3,237,000 3,237,000 24,183,768    
Stock repurchased, value $ 32,000 $ 32,000      
v3.23.3
Accumulated Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]        
Amount of income related to the cash flow hedges recognized in other comprehensive (loss) income $ 1,804 $ 12,134 $ 6,254 $ 36,786
Amounts reclassified from accumulated other comprehensive income decreasing interest and debt expense (7,909) (2,338) (23,884) (2,336)
Amount of income related to unconsolidated joint ventures recognized in other comprehensive (loss) income 1,055 6,150 4,196 18,046
Amounts reclassified from accumulated other comprehensive income(decreasing) increasing loss from unconsolidated joint ventures $ (2,589) $ (443) $ (6,899) $ 1,063
v3.23.3
Accumulated Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income by Component (Parenthetical) (Details) - Designated As Hedging Instrument [Member] | - Cash Flow Hedging [Member]
Sep. 30, 2023
USD ($)
Interest Rate Swap [Member]  
Accumulated Other Comprehensive Income Loss [Line Items]  
Derivative liability, aggregate notional amount $ 500,000,000
Interest Rate Swap [Member] | Unconsolidated Joint Ventures [Member]  
Accumulated Other Comprehensive Income Loss [Line Items]  
Derivative liability, aggregate notional amount 402,000,000
Interest Rate Cap [Member]  
Accumulated Other Comprehensive Income Loss [Line Items]  
Derivative liability, aggregate notional amount $ 360,000,000
v3.23.3
Noncontrolling Interests - Additional Information (Details) - USD ($)
 9 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Noncontrolling Interest [Abstract]    
Consolidated joint ventures $ 410,944,000 $ 402,118,000
Noncontrolling interests in consolidated real estate related funds aggregated 162,973,000 173,375,000
Operating partnerships 306,836,000 242,982,000
Redemption value $ 89,765,000 $ 86,644,000
Common units conversion basis one-for-one  
v3.23.3
Variable Interest Entities ("VIEs") - Additional Information (Details)
 9 Months Ended
Sep. 30, 2023
Variable Interest Entities [Member] | Paramount Group Operating Partnership [Member]  
Variable Interest Entity [Line Items]  
Percentage of ownership in operating partnership 91.80%
v3.23.3
Variable Interest Entities ("VIEs") - Summary of Assets and Liabilities of Consolidated Variable Interest Entities (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Dec. 31, 2021
Variable Interest Entity [Line Items]        
Real estate, net $ 6,756,165 $ 6,846,224    
Cash and cash equivalents and restricted cash 470,523 449,817 $ 509,854 $ 529,666
Real estate related fund investments 68,225 105,369    
Deferred rent receivable 347,641 346,338    
Deferred charges, net 112,448 120,685    
Intangible assets, net 74,391 90,381    
Other assets 72,265 73,660    
Total assets [1] 8,288,559 8,453,254    
Notes and mortgages payable, net 3,802,333 3,840,318    
Accounts payable and accrued expenses 109,471 123,176    
Intangible liabilities, net 29,981 36,193    
Other liabilities 28,452 24,775    
Total liabilities [1] 3,978,594 4,042,488    
Variable Interest Entities [Member]        
Variable Interest Entity [Line Items]        
Real estate, net 3,306,722 3,364,482    
Cash and cash equivalents and restricted cash 140,963 144,446    
Accounts and other receivables 9,959 13,647    
Real estate related fund investments 68,225 105,369    
Investments in unconsolidated joint ventures 90,865 77,961    
Deferred rent receivable 206,500 197,658    
Deferred charges, net 46,841 49,485    
Intangible assets, net 42,404 50,553    
Other assets 20,958 9,860    
Total assets 3,933,437 4,013,461    
Notes and mortgages payable, net 2,449,917 2,489,902    
Accounts payable and accrued expenses 52,873 61,492    
Intangible liabilities, net 18,369 21,936    
Other liabilities 4,649 6,051    
Total liabilities $ 2,525,808 $ 2,579,381    
[1] Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 91.8% as of September 30, 2023. As of September 30, 2023, the assets and liabilities of the Operating Partnership include $3,933,437 and $2,525,808 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities (“VIEs”).
v3.23.3
Variable Interest Entities ("VIEs") - Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments (Details) - Unconsolidated Real Estate Funds [Member] - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Carrying Value of Investments [Member]    
Variable Interest Entity [Line Items]    
Investments in unconsolidated real estate related funds $ 4,537 $ 3,411
Asset Management Fees and Other Receivables [Member]    
Variable Interest Entity [Line Items]    
Investments in unconsolidated real estate related funds   21
Maximum Risk of Loss [Member]    
Variable Interest Entity [Line Items]    
Investments in unconsolidated real estate related funds $ 4,537 $ 3,432
v3.23.3
Fair Value Measurements - Schedule of Fair Value of Financial Assets Measured at Fair Value (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Real estate related fund investments $ 68,225 $ 105,369
Total assets 91,866 144,173
Interest Rate Swap [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Interest rate assets (included in "other assets") 20,865 32,681
Interest Rate Cap [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Interest rate assets (included in "other assets") 2,776 6,123
Level 2 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total assets 23,641 38,804
Level 2 [Member] | Interest Rate Swap [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Interest rate assets (included in "other assets") 20,865 32,681
Level 2 [Member] | Interest Rate Cap [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Interest rate assets (included in "other assets") 2,776 6,123
Level 3 [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Real estate related fund investments 68,225 105,369
Total assets $ 68,225 $ 105,369
v3.23.3
Fair Value Measurements (Additional Information) (Details)
Sep. 30, 2023
Credit Spread [Member] | Maximum [Member] | Level 3 [Member]  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Real Estate Related Fund Investment, Unobservable Input 10
v3.23.3
Fair Value Measurements - Summary of Changes in Fair Value of Real Estate Related Fund Investments in Level 3 (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Beginning balance   $ 105,369
Ending balance $ 68,225 68,225
Level 3 [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Beginning balance   105,369
Ending balance 68,225 68,225
Level 3 [Member] | Real Estate Related Fund Investments [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Beginning balance 66,606 105,369
Additional investments 1,591 9,631
Net realized losses   (1,224)
Net unrealized gains (losses) 28 (45,551)
Ending balance $ 68,225 $ 68,225
v3.23.3
Fair Value Measurements - Summary of Carrying Amounts and Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Carrying Amount [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Notes and mortgages payable $ 3,817,050 $ 3,858,000
Total liabilities 3,817,050 3,858,000
Fair Value [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Notes and mortgages payable 3,442,036 3,566,096
Total liabilities $ 3,442,036 $ 3,566,096
v3.23.3
Leases - Additional Information (Details)
Sep. 30, 2023
Minimum [Member]  
Lessor Lease Description [Line Items]  
Lease term 5 years
Maximum [Member]  
Lessor Lease Description [Line Items]  
Lease term 15 years
v3.23.3
Leases - Schedule of Rental Revenues (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Disaggregation of Revenue [Abstract]        
Fixed rental revenues $ 160,107 $ 162,444 $ 474,931 $ 480,766
Variable rental revenues 22,408 16,806 54,803 45,649
Total rental revenue $ 182,515 $ 179,250 $ 529,734 $ 526,415
v3.23.3
Leases - Schedule of Future Undiscounted Cash Flows Under Non-Cancellable Operating Leases (Details)
$ in Thousands
Sep. 30, 2023
USD ($)
Leases [Abstract]  
2023 $ 156,143
2024 618,325
2025 577,127
2026 497,057
2027 436,276
2028 434,292
Thereafter 1,897,555
Total $ 4,616,775
v3.23.3
Fee and Other Income - Summary of Fee and Other Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Fee income:        
Fee income $ 4,573 $ 5,132 $ 14,106 $ 23,094
Other income 2,093 2,765 6,477 6,840
Total fee and other income 6,666 7,897 20,583 29,934
Asset Management Fees [Member]        
Fee income:        
Fee income 2,459 3,166 6,960 9,138
Property Management Fees [Member]        
Fee income:        
Fee income 1,810 1,849 5,503 6,171
Acquisition Disposition Leasing And Other [Member]        
Fee income:        
Fee income $ 304 $ 117 $ 1,643 $ 7,785
v3.23.3
Interest and Debt Expense - Details of Interest and Debt Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Interest and Debt Expense [Abstract]        
Interest expense $ 37,549 $ 35,412 $ 107,810 $ 102,190
Amortization of deferred financing costs 1,553 1,537 4,630 4,614
Total interest and debt expense $ 39,102 $ 36,949 $ 112,440 $ 106,804
v3.23.3
Incentive Compensation - Additional Information (Details) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 08, 2023
Jan. 25, 2023
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Stock-based compensation expense     $ 4,680,000 $ 4,149,000 $ 14,011,000 $ 14,853,000  
Restricted Stock [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Awards granted   81,531          
2023 Performance Program [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Performance measurement period, term   3 years          
Performance measurement period, start date   Jan. 01, 2023          
Performance measurement period, end date   Dec. 31, 2025          
Percentage of payout exceeding units granted   100.00%          
Reduction in percentage on number of LTIP units earned if negative TSR   30.00%          
Fair value of awards granted   $ 7,067,000          
Vesting period   4 years          
2023 Performance Program [Member] | Share-Based Compensation Award Tranche One [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Percentage of the awards that vest   50.00%          
2023 Performance Program [Member] | Share-Based Compensation Award Tranche Two [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Percentage of the awards that vest   50.00%          
Long Term Incentive Plan [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Awards granted   796,349          
Long Term Incentive Plan [Member] | Minimum [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Vesting period   3 years          
Long Term Incentive Plan [Member] | Maximum [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Vesting period   4 years          
Appreciation Only Long Term Incentive Plan              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Awards granted   2,054,270          
2020 Performance Program [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Performance measurement period, term   3 years         3 years
Reduction in percentage on number of LTIP units earned if negative TSR   30.00%          
Percentage of LTIP units earned   41.50%          
LTIP units, earned   443,713          
Percentage of awards earned prior to TSR modification   59.70%          
Performance based AOLTIP [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Contractual term of award 10 years            
Common units convertible consecutive trading days 20 days            
Performance based AOLTIP [Member] | Incentive and Retention Plan Grants [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Awards granted 7,518,519            
Performance based AOLTIP [Member] | Minimum [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Applicable closing stock price of common stock $ 5.12            
Performance based AOLTIP [Member] | Share-Based Compensation Award Tranche One [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Share based vesting percentage 20.00%            
Performance based AOLTIP [Member] | Share-Based Compensation Award Tranche Two [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Share based vesting percentage 80.00%            
Performance based AOLTIP [Member] | Performance Less Than 25% [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Minimum applicable closing stock price of common stock $ 6.4            
Applicable closing common stock price percentage 25.00%            
Percentage of Performance Based AOLTIP Units Earned 0.00%            
Performance based AOLTIP [Member] | Performance Greater Than 25% and Less Than 50% [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Applicable closing stock price of common stock $ 6.4            
Applicable closing common stock price percentage 25.00%            
Percentage of Performance Based AOLTIP Units Earned 33.00%            
Performance based AOLTIP [Member] | Performance Greater Than 50% and Less Than 75% [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Applicable closing stock price of common stock $ 7.68            
Applicable closing common stock price percentage 50.00%            
Percentage of Performance Based AOLTIP Units Earned 67.00%            
Performance based AOLTIP [Member] | Performance Greater than 75% [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Applicable closing stock price of common stock $ 8.96            
Applicable closing common stock price percentage 75.00%            
Percentage of Performance Based AOLTIP Units Earned 100.00%            
Time-Based LTIP units              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Fair value granted   $ 8,783,000          
Time-Based LTIP units | Incentive and Retention Plan Grants [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Awards granted 4,112,044            
Time-Based LTIP units | Share-Based Compensation Award Tranche One [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Percentage of the awards that vest 50.00%            
Time-Based LTIP units | Share-Based Compensation Award Tranche Two [Member]              
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]              
Percentage of the awards that vest 50.00%            
v3.23.3
Earnings Per Share - Summary of Computation of Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Numerator:        
Net (loss) income attributable to common stockholders $ (8,385) $ (1,537) $ (54,194) $ 1,474
Earnings allocated to unvested participating securities, basic (10) (21) (40) (64)
Earnings allocated to unvested participating securities, diluted (10) (21) (40) 64
Numerator for (loss) income per common share - basic (8,395) (1,558) (54,234) 1,410
Numerator for (loss) income per common share - diluted $ (8,395) $ (1,558) $ (54,234) $ 1,410
Denominator:        
Denominator for basic (loss) income per common share - weighted average shares 217,043,022 224,864,791 216,871,778 222,228,605
Effect of dilutive stock-based compensation plans       34,000
Denominator for diluted (loss) income per common share - weighted average shares 217,043,022 224,864,791 216,871,778 222,262,748
(Loss) income per common share - basic $ (0.04) $ (0.01) $ (0.25) $ 0.01
(Loss) income per common share - diluted $ (0.04) $ (0.01) $ (0.25) $ 0.01
v3.23.3
Earnings Per Share - Summary of Computation of Earnings Per Share (Parenthetical) (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Earnings Per Share [Abstract]        
Effect of dilutive securities excluded from computation of earning per share 18,470 18,041 17,804 20,889
v3.23.3
Related Parties - Additional Information (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
USD ($)
ft²
Sep. 30, 2022
USD ($)
Sep. 30, 2023
USD ($)
ft²
Sep. 30, 2022
USD ($)
Dec. 31, 2022
USD ($)
ft²
Related Party Transaction [Line Items]          
Fee and other income $ 6,666,000 $ 7,897,000 $ 20,583,000 $ 29,934,000  
Accounts and other receivables 14,340,000   14,340,000   $ 23,866,000
Fee income 4,573,000 5,132,000 14,106,000 23,094,000  
Transaction related costs 132,000 105,000 323,000 381,000  
Accounts payable and accrued expenses $ 109,471,000   $ 109,471,000   123,176,000
Area of leased properties | ft² 13,800,000   13,800,000    
Rental revenue $ 182,515,000 179,250,000 $ 529,734,000 526,415,000  
712 Fifth Avenue [Member]          
Related Party Transaction [Line Items]          
Equity method paramount ownership percentage 50.00%   50.00%    
CNBB-RDF Holdings Otto Family [Member] | Management Agreements [Member]          
Related Party Transaction [Line Items]          
Fee and other income $ 262,000 272,000 $ 791,000 1,021,000  
Accounts and other receivables 47,000   47,000   52,000
Unconsolidated Joint Ventures and Real Estate Funds [Member] | Management Agreements [Member]          
Related Party Transaction [Line Items]          
Accounts and other receivables 2,479,000   2,479,000   3,032,000
Fee income $ 3,585,000 4,277,000 $ 11,288,000 20,075,000  
Hamburg Trust Consulting GMBH ("HTC") [Member]          
Related Party Transaction [Line Items]          
Mark-up cost percentage 10.00%   10.00%    
Transaction related costs $ 102,000 105,000 $ 293,000 621,000  
Accounts payable and accrued expenses $ 205,000   $ 205,000   $ 119,000
Hamburg Trust Consulting GMBH ("HTC") [Member] | Chairman, Chief Executive Officer and President [Member]          
Related Party Transaction [Line Items]          
Percentage of ownership 100.00%   100.00%    
Mannheim Trust [Member] | Board of Director [Member] | 712 Fifth Avenue [Member]          
Related Party Transaction [Line Items]          
Lease rental income $ 30,000 91,000 $ 154,000 273,000  
Mannheim Trust [Member] | Board of Director [Member] | 712 Fifth Avenue [Member] | Lease expiring in June 2025 [Member]          
Related Party Transaction [Line Items]          
Area of leased properties | ft² 3,127   3,127    
Equity method paramount ownership percentage 50.00%   50.00%    
ParkProperty Capital LP [Member] | Board of Director [Member]          
Related Party Transaction [Line Items]          
Rental revenue $ 69,000 $ 53,000 $ 207,000 $ 161,000  
ParkProperty Capital LP [Member] | Board of Director [Member] | 1633 Broadway [Member]          
Related Party Transaction [Line Items]          
Area of leased properties | ft² 3,330   3,330    
ParkProperty Capital LP [Member] | Board of Director [Member] | 1325 Avenue of the Americas [Member]          
Related Party Transaction [Line Items]          
Area of leased properties | ft²         4,233
Lease term         5 years
Kramer Design Services [Member]          
Related Party Transaction [Line Items]          
Business development costs incurred $ 19,000   $ 103,000    
Kramer Design Services [Member] | Chairman, Chief Executive Officer and President [Member]          
Related Party Transaction [Line Items]          
Percentage of ownership 100.00%   100.00%    
v3.23.3
Commitments and Contingencies - Additional Information (Details) - New York State Division Of Taxation And Finance [Member]
Feb. 16, 2018
USD ($)
Minimum [Member]  
Other Commitments [Line Items]  
Loss Contingency, Estimate of Possible Loss $ 0
Maximum [Member]  
Other Commitments [Line Items]  
Loss Contingency, Estimate of Possible Loss $ 61,000,000
v3.23.3
Segments - Additional Information (Details)
 9 Months Ended
Sep. 30, 2023
Segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.23.3
Segments - Schedule of NOI for Each Reportable Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Segment Reporting Information [Line Items]        
Property-related revenues $ 184,608 $ 182,015 $ 536,211 $ 533,255
Property-related operating expenses (75,502) (72,845) (216,889) (207,320)
NOI from unconsolidated joint ventures (excluding One Steuart Lane) 9,233 11,540 30,334 34,359
NOI [1] 118,339 120,710 349,656 360,294
New York [Member]        
Segment Reporting Information [Line Items]        
Property-related revenues 118,749 117,431 342,812 349,136
Property-related operating expenses (52,470) (52,421) (150,676) (148,779)
NOI from unconsolidated joint ventures (excluding One Steuart Lane) 3,376 3,556 10,143 9,902
NOI [1] 69,655 68,566 202,279 210,259
San Francisco [Member]        
Segment Reporting Information [Line Items]        
Property-related revenues 66,252 64,667 194,564 185,798
Property-related operating expenses (22,447) (19,496) (64,529) (55,369)
NOI from unconsolidated joint ventures (excluding One Steuart Lane) 5,858 7,837 20,133 24,162
NOI [1] 49,663 53,008 150,168 154,591
Other [Member]        
Segment Reporting Information [Line Items]        
Property-related revenues (393) (83) (1,165) (1,679)
Property-related operating expenses (585) (928) (1,684) (3,172)
NOI from unconsolidated joint ventures (excluding One Steuart Lane) (1) 147 58 295
NOI [1] $ (979) $ (864) $ (2,791) $ (4,556)
[1] NOI is used to measure the operating performance of our properties. NOI consists of rental revenue (which includes property rentals, tenant reimbursements and lease termination income) and certain other property-related revenue less operating expenses (which includes property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI and, accordingly, our presentation of NOI may not be comparable to other real estate companies.
v3.23.3
Segments - Schedule of Reconciliation of NOI to Net (Loss) Income Attributable to Common Stockholders (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Segment Reporting [Abstract]        
NOI [1] $ 118,339 $ 120,710 $ 349,656 $ 360,294
Fee income 4,573 5,132 14,106 23,094
Depreciation and amortization expense (60,263) (58,284) (181,778) (171,306)
General and administrative expenses (15,460) (13,150) (46,307) (45,501)
Income (loss) from real estate related fund investments 2,060 0 (37,034) 0
NOI from unconsolidated joint ventures (excluding One Steuart Lane) (9,233) (11,540) (30,334) (34,359)
Loss from unconsolidated joint ventures (28,974) (5,797) (63,138) (15,326)
Interest and other income, net 4,115 1,580 10,007 2,607
Interest and debt expense (39,102) (36,949) (112,440) (106,804)
Other, net (853) 195 (1,190) 244
(Loss) income before income taxes (24,798) 1,897 (98,452) 12,943
Income tax expense (263) (673) (1,124) (1,559)
Net (loss) income (25,061) 1,224 (99,576) 11,384
Consolidated joint ventures (4,887) (4,179) (15,879) (12,383)
Consolidated real estate related funds 20,934 1,309 57,412 2,677
Operating Partnership 629 109 3,849 (204)
Net (loss) income attributable to common stockholders $ (8,385) $ (1,537) $ (54,194) $ 1,474
[1] NOI is used to measure the operating performance of our properties. NOI consists of rental revenue (which includes property rentals, tenant reimbursements and lease termination income) and certain other property-related revenue less operating expenses (which includes property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI and, accordingly, our presentation of NOI may not be comparable to other real estate companies.
v3.23.3
Segments - Schedule of Total Assets for Each Reportable Segments Information (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]    
Total assets [1] $ 8,288,559 $ 8,453,254
New York [Member]    
Segment Reporting Information [Line Items]    
Total assets 5,208,082 5,311,636
San Francisco [Member]    
Segment Reporting Information [Line Items]    
Total assets 2,575,677 2,631,265
Other [Member]    
Segment Reporting Information [Line Items]    
Total assets $ 504,800 $ 510,353
[1] Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 91.8% as of September 30, 2023. As of September 30, 2023, the assets and liabilities of the Operating Partnership include $3,933,437 and $2,525,808 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities (“VIEs”).