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JOINT VENTURES AND PARTNERSHIPS (Tables) | 6 Months Ended
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Jun. 30, 2021
JOINT VENTURES AND PARTNERSHIPS |
Schedule of unconsolidated joint ventures and partnerships | The following table summarizes the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net, which are accounted for under the equity method of accounting as of June 30, 2021 and December 31, 2020 (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Number of | ​ | Number of | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Operating | ​ | Apartment | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | Income/(loss) from investments
​ | ​ | ​ | ​ | Communities | ​ | Homes | ​ | Investment at | ​ | UDR’s Ownership Interest | ​ | ​ | Three Months Ended | ​ | Six Months Ended
​ |  | Location of |  | June 30, |  | June 30, |  | June 30, |  | December 31, | ​ | June 30, |  | ​ | December 31, |  | ​ | June 30, | ​ | June 30,
Joint Ventures |  | Properties |  | 2021 |  | 2021 |  | 2021 |  | 2020 | ​ | 2021 |  | ​ | 2020 |  | ​ | 2021 |  | 2020 | ​ | 2021 |  | 2020
Operating: | ​ |  | ​ |  | ​ |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
UDR/MetLife I | ​ | Los Angeles, CA | ​ | 1 | ​ | 150 | ​ | $ | 25,095 | ​ | $ | 26,426 | ​ | 50.0 | % | ​ | 50.0 | % | ​ | $ | (839) | ​ | $ | (658) | ​ | $ | (1,314) | ​ | $ | (1,112)
UDR/MetLife II |  | Various |  | 7 |  | 1,250 |  | ​ | 184,568 |  | ​ | 151,353 | ​ | 50.0 | % | ​ | 50.0 | % | ​ | ​ | (153) | ​ | ​ | 10 | ​ | ​ | (2,837) | ​ | ​ | (81)
Other UDR/MetLife Joint Ventures (a) |  | Various |  | 5 |  | 1,437 |  | ​ | 74,178 |  | ​ | 82,072 | ​ | 50.6 | % | ​ | 50.6 | % | ​ | ​ | (3,367) | ​ | ​ | (2,312) | ​ | ​ | (6,752) | ​ | ​ | (4,124)
West Coast Development Joint Ventures (b) | ​ | Los Angeles, CA | ​ | — | ​ | — | ​ | ​ | 311 | ​ | ​ | 30,080 | ​ | 47.0 | % | ​ | 47.0 | % | ​ | ​ | — | ​ | ​ | (56) | ​ | ​ | 2,486 | ​ | ​ | (136)
Investment in and advances to unconsolidated joint ventures, net, before preferred equity investments and real estate technology investments |  |  | ​ | $ | 284,152 | ​ | $ | 289,931 | ​ |  |  | ​ |  | ​ | ​ | $ | (4,359) | ​ | $ | (3,016) | ​ | $ | (8,417) | ​ | $ | (5,453)
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Income/(loss) from investments
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Investment at | ​ | Three Months Ended | ​ | Six Months Ended
Developer Capital Program |  | ​ |  | ​ |  | Years To | ​ | UDR |  | June 30, |  | December 31, |  | June 30, | ​ | June 30,
and Real Estate Technology Investments (c) |  | Location |  | Rate |  | Maturity | ​ | Commitment (d) |  | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020
Preferred equity investments: |  |  |  |  |  |  | ​ | ​ | ​ | ​ |  |  | ​ |  |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ |
1532 Harrison | ​ | San Francisco, CA | ​ | 11.0 | % | 1.0 | ​ | $ | 24,645 | ​ | $ | 36,040 | ​ | $ | 34,135 | ​ | ​ | 963 | ​ | ​ | 846 | ​ | $ | 1,892 | ​ | $ | 1,682
Junction | ​ | Santa Monica, CA | ​ | 12.0 | % | 1.1 | ​ | ​ | 8,800 | ​ | ​ | 12,413 | ​ | ​ | 11,699 | ​ | ​ | 364 | ​ | ​ | 323 | ​ | ​ | 714 | ​ | ​ | 637
1200 Broadway (e) (f) | ​ | Nashville, TN | ​ | 12.25 | % | 1.2 | ​ | ​ | 55,558 | ​ | ​ | 59,354 | ​ | ​ | 69,330 | ​ | ​ | 1,727 | ​ | ​ | 1,306 | ​ | ​ | 3,099 | ​ | ​ | 2,587
1300 Fairmount (f) | ​ | Philadelphia, PA | ​ | 8.5 | % | 2.1 | ​ | ​ | 51,393 | ​ | ​ | 62,075 | ​ | ​ | 59,544 | ​ | ​ | 1,275 | ​ | ​ | 1,191 | ​ | ​ | 2,531 | ​ | ​ | 2,357
Essex | ​ | Orlando, FL | ​ | 12.5 | % | 2.1 | ​ | ​ | 12,886 | ​ | ​ | 17,085 | ​ | ​ | 16,770 | ​ | ​ | 543 | ​ | ​ | 481 | ​ | ​ | 1,065 | ​ | ​ | 947
Modera Lake Merritt (f) | ​ | Oakland, CA | ​ | 9.0 | % | 2.8 | ​ | ​ | 27,250 | ​ | ​ | 32,334 | ​ | ​ | 30,928 | ​ | ​ | 714 | ​ | ​ | 652 | ​ | ​ | 1,405 | ​ | ​ | 1,226
Thousand Oaks (f) | ​ | Thousand Oaks, CA | ​ | 9.0 | % | 3.6 | ​ | ​ | 20,059 | ​ | ​ | 21,759 | ​ | ​ | 17,919 | ​ | ​ | 481 | ​ | ​ | 153 | ​ | ​ | 918 | ​ | ​ | 177
Vernon Boulevard (f) | ​ | Queens, NY | ​ | 13.0 | % | 4.0 | ​ | ​ | 40,000 | ​ | ​ | 45,169 | ​ | ​ | 42,360 | ​ | ​ | 1,431 | ​ | ​ | — | ​ | ​ | 2,804 | ​ | ​ | —
Makers Rise (f) (g) | ​ | Herndon, VA | ​ | 9.0 | % | 4.5 | ​ | ​ | 30,208 | ​ | ​ | 9,176 | ​ | ​ | — | ​ | ​ | 171 | ​ | ​ | — | ​ | ​ | 268 | ​ | ​ | —
121 at Watters (f) (h) | ​ | Allen, TX | ​ | 9.0 | % | 4.7 | ​ | ​ | 19,846 | ​ | ​ | 2,179 | ​ | ​ | — | ​ | ​ | 226 | ​ | ​ | — | ​ | ​ | 229 | ​ | ​ | —
Infield Phase I (i) | ​ | Kissimmee, FL | ​ | 14.0 | % | 2.9 | ​ | ​ | 16,044 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Real estate technology investments: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
RETV I | ​ | N/A | ​ | N/A | ​ | N/A | ​ | ​ | 18,000 | ​ | ​ | 28,696 | ​ | ​ | 20,587 | ​ | ​ | 6,055 | ​ | ​ | 4,696 | ​ | ​ | 8,106 | ​ | ​ | 4,550
RETV II | ​ | N/A | ​ | N/A | ​ | N/A | ​ | $ | 18,000 | ​ | ​ | 3,471 | ​ | ​ | 2,283 | ​ | ​ | 163 | ​ | ​ | — | ​ | ​ | 62 | ​ | ​ | —
Total Preferred Equity Investments and Real Estate Technology Investments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 329,751 | ​ | ​ | 305,555 | ​ | ​ | 14,113 | ​ | ​ | 9,648 | ​ | ​ | 23,093 | ​ | ​ | 14,163
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Sold joint ventures and other investments in prior year | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (3) | ​ | ​ | 1,389 | ​ | ​ | (3) | ​ | ​ | 2,678
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total Joint Ventures and Developer Capital Program and Real Estate Technology Investments, net (a) | ​ | ​ | ​ | ​ | $ | 613,903 | ​ | $ | 595,486 | ​ | $ | 9,751 |  | $ | 8,021 | ​ | $ | 14,673 |  | $ | 11,388
(a) | As of June 30, 2021 and December 31, 2020, the Company’s negative investment in 13th and Market Properties LLC of $5.3 million and $4.7 million, respectively, is included in Other UDR/MetLife Joint Ventures in the table above and recorded in Accounts payable, accrued expenses, and other liabilities on the Consolidated Balance Sheet.
(b) | In J anuary 2021, the joint venture sold its remaining community, a 293 home operating community located in Los Angeles, California, for a sales price of approximately $121.0 million. As a result, the Company recorded a gain on the sale of approximately $2.5 million.
(c) | The Developer Capital Program is the program through which the Company makes investments, including preferred equity investments, mezzanine loans or other structured investments that may receive a fixed yield on the investment and may include provisions pursuant to which the Company participates in the increase in value of the property upon monetization of the applicable property and/or holds fixed price purchase options.
(d) | Represents UDR’s maximum funding commitment only and therefore excludes other activity such as income from investments.
(e) | In April 2021, the balance was paid down by $12.5 million and the Company’s preferred return increased to 12.25%. The Company's preferred return will revert to 8.0% in February 2022 if no capital events occur prior to that date.
(f) | The Company’s preferred equity investment receives a variable percentage of the value created from the project upon a capital or liquidating event.
(g) | In January 2021, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to
| develop and operate a 356 apartment home community in Herndon, Virginia. The Company’s preferred equity investment of $30.2 million earns a preferred return of 9.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and accounts for it under the equity method of accounting.
(h) | In March 2021, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 469 apartment home community in Allen, Texas. The Company’s preferred equity investment of $19.8 million earns a preferred return of 9.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and accounts for it under the equity method of accounting.
(i) | In May 2021, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 384 apartment home community in Kissimmee, Florida. The Company’s preferred equity investment of $16.0 million earns a preferred return of 14.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and accounts for it under the equity method of accounting.
Combined summary of balance sheets relating to unconsolidated joint ventures and partnerships | Combined summary balance sheets relating to the unconsolidated joint ventures’ and partnerships’ (not just our proportionate share) are presented below as of June 30, 2021 and December 31, 2020 (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2021 |  | 2020
Total real estate, net |  | $ | 2,138,303 |  | $ | 1,904,805
Real estate assets held for sale | ​ |  | — | ​ |  | 88,458
Cash and cash equivalents | ​ |  | 18,606 | ​ |  | 22,278
Other assets | ​ | ​ | 240,953 | ​ |  | 150,894
Total assets |  | $ | 2,397,862 |  | $ | 2,166,435
​ | ​ | ​ | ​ | ​ | ​ | ​
Third party debt, net | ​ | $ | 1,259,279 | ​ | $ | 1,188,710
Liabilities held for sale | ​ |  | — | ​ |  | 55,440
Accounts payable and accrued liabilities | ​ | ​ | 38,390 | ​ | ​ | 40,556
Total liabilities |  | ​ | 1,297,669 |  | ​ | 1,284,706
Total equity |  | $ | 1,100,193 |  | $ | 881,729
Schedule of combined financial information relating to unconsolidated joint ventures and partnerships operations (not just proportionate share) | Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three and six months ended June 30, 2021 and 2020 (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Six Months Ended
​ | ​ | June 30, | ​ | June 30,
​ |  | 2021 |  | 2020 |  | 2021 |  | 2020
Total revenues |  | $ | 32,006 |  | $ | 37,312 |  | $ | 64,143 |  | $ | 78,626
Property operating expenses | ​ |  | 16,745 | ​ |  | 14,468 | ​ |  | 33,855 | ​ |  | 29,765
Real estate depreciation and amortization | ​ |  | 16,144 | ​ |  | 16,913 | ​ |  | 32,597 | ​ |  | 33,156
Gain/(loss) on sale of property | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 34,757 | ​ | ​ | —
Operating income/(loss) | ​ |  | (883) | ​ | ​ | 5,931 | ​ |  | 32,448 | ​ | ​ | 15,705
Interest expense | ​ |  | (7,460) | ​ |  | (10,149) | ​ |  | (19,594) | ​ |  | (20,496)
Net realized/unrealized gain/(loss) on held investments | ​ | ​ | 38,350 | ​ | ​ | 29,312 | ​ | ​ | 46,838 | ​ | ​ | 29,312
Other income/(loss) | ​ | ​ | (14) | ​ | ​ | 117 | ​ | ​ | (1,671) | ​ | ​ | 109
Net income/(loss) |  | $ | 29,993 |  | $ | 25,211 |  | $ | 58,021 |  | $ | 24,630

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