Investments in Unconsolidated Real Estate (Tables)

9 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Summary of Investments in Unconsolidated Real Estate

The following table summarizes our investments in unconsolidated real estate entities as of September 30, 2023 and December 31, 2022:


					Carrying Value As Of
Investments in Unconsolidated Real Estate Entities	Location	Units (1) (Unaudited)	IRT Ownership Interest		September 30, 2023		December 31, 2022
Metropolis at Innsbrook (2)	Richmond, VA	402	84.8	%	$	17,576	$	17,331
Views of Music City II / The Crockett (3)	Nashville, TN	408	50.0	%	11,632		11,363
Lakeline Station	Austin, TX	378	90.0	%	31,585		25,292
The Mustang	Dallas, TX	275	85.0	%	26,799		11,812
Virtuoso (4)	Huntsville, AL	—	90.0	%	—		14,422
Total		1,463			$	87,592	$	80,220

(1)Represents the total number of units after development is complete and each property is placed in service.

(2)Operations commenced during the three months ended June 30, 2023 with 172 units (unaudited) placed in service. The remaining 230 units (unaudited) were placed in service during the three months ended September 30, 2023.

(3)Views of Music City phase II had 121 units (unaudited) placed in service during the three months ended September 30, 2023 and became an operating property consisting of 209 total units (unaudited) as of October 2, 2023. The Crockett is an operating property consisting of 199 units (unaudited) delivered during the three months ended March 31, 2023. We have one year from their respective delivery dates to exercise our purchase options on The Crockett and Views of Music City phase II.

(4)An amendment to the Virtuoso joint venture agreement on August 1, 2023 provided us with control over the major decisions that most significantly impact the joint venture and removed our joint venture partner’s rights to a promote interest. This caused us to reassess the accounting for Virtuoso, a former unconsolidated real estate entity that consists of 178 units (unaudited) in Huntsville, Alabama, during the quarter ended September 30, 2023. Because we concluded that Virtuoso is a voting interest entity and that we now control the major decisions that most significantly impact the joint venture through our 90% voting interest, we began consolidating the assets and liabilities and operating results of Virtuoso effective August 1, 2023. In accordance with FASB Topic ASC 805, upon consolidation, we recognized the assets and liabilities of Virtuoso at carryover basis, allocating the individual assets and liabilities based upon their relative fair values on our condensed consolidated balance sheets.

Summary of Investments in Real Estate

The following table summarizes our investments in real estate, excluding one property we classified as held for sale:


	As of September 30, 2023		As of December 31, 2022		Depreciable Lives (In years)
Land	$	586,361	$	579,094	—
Building	5,728,541		5,695,711		40
Furniture, fixtures and equipment	439,120		340,438		5-10
Total investments in real estate	$	6,754,022	$	6,615,243
Accumulated depreciation	(567,200)		(425,034)
Investments in real estate, net	$	6,186,822	$	6,190,209

The following table summarizes the assets and liabilities recognized upon the consolidation of Virtuoso, our former unconsolidated real estate entity during the nine months ended September 30, 2023, on the date of consolidation.


	Assets and Liabilities Consolidated During the Nine Months Ended September 30, 2023
Assets:
Investments in real estate	$	49,939
Cash and cash equivalents	817
Restricted cash	1,329
Other assets	395
Intangible assets	398
Total assets	$	52,878
Liabilities:
Indebtedness	$	39,281
Accounts payable and accrued expenses	255
Accrued interest payable	283
Other liabilities	111
Total liabilities	39,931
Noncontrolling interest	256
Derecognition of investments in unconsolidated real estate entities	12,691
Total Liabilities and equity	$	52,878