This excerpt taken from the PNC 10-Q filed Nov 8, 2007.
Equity Funding And Other Commitments
Our unfunded commitments related to private equity investments, affordable housing limited partnerships, other investments, and historic tax credits were $255 million, $74 million, $57 million, and $18 million, respectively, at September 30, 2007. The amount of other investments at September 30, 2007 included those related to Steel City Capital Funding LLC (Steel City) as further discussed below.
On March 1, 2007, we entered into a joint venture with a third party to form Steel City for purposes of purchasing and originating second lien loans and turnaround loans. Our primary reason for pursuing this venture was to leverage our strengths of origination and servicing, provide an additional product to our customers, and allow for us to moderate the risks associated with this asset class. Additionally, we will earn fees for portfolio management services. Steel City is a limited liability company in which various PNC subsidiaries hold approximately a 31% equity ownership. At September 30, 2007, our capital contribution to Steel City was approximately $31 million with a commitment to fund an additional $47 million. The third party investor has contributed $70 million with a commitment to fund an additional $105 million. We evaluated the accounting for this transaction under FIN 46R, Accounting Research Bulletin No. 51 and other appropriate GAAP and determined that our aggregate investment will be accounted for under the equity method. This transaction did not have a material impact on our consolidated results of operations.
On May 24, 2007, we entered into a joint venture with Vornado Realty Trust to construct a new headquarters building for the Washington, DC market. The joint venture is expected to close in December 2007. We will contribute approximately $64 million in property in exchange for a 51% ownership interest. At closing, the joint venture entity will be named PNC VNO 17th Street LLC.