Investments in Unconsolidated Real Estate Entities (Tables)

12 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Investments in Unconsolidated Real Estate

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


					Carrying Value As Of
Investments in Unconsolidated Real Estate Entities	Location	Units(1) (Unaudited)	IRT Ownership Interest		December 31, 2023				December 31, 2022
Metropolis at Innsbrook (2)	Richmond, VA	402	84.8	%	$	18,028			$	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	%	32,126				25,292
The Mustang	Dallas, TX	275	85.0	%	27,258				11,812
Virtuoso (4)	Huntsville, AL	—	90.0	%	—				14,422
Total		1,463			$	89,044	$	89,044	$	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. We have a call option, which takes effect on June 1, 2024, to exercise our purchase option on Metropolis at Innsbrook when the property achieves 90% occupancy.

(3)Views of Music City II is an operating property consisting of 209 total units (unaudited) delivered 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 until April 4, 2024 and October 1, 2024 to exercise our purchase options on The Crockett and Views of Music City II, respectively.

(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. As a result of the amendment, we reassessed the accounting for Virtuoso, a former unconsolidated real estate entity that consists of 178 units (unaudited) in Huntsville, Alabama. 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 consolidated balance sheets.

Schedule of Investments in Real Estate

The following table summarizes our investments in real estate:


	2023		2022		Depreciable Lives (In years)
Land	$	540,950	$	579,094	—
Building	5,288,956		5,695,711		40
Furniture, fixtures and equipment	429,306		340,438		5-10
Total investments in real estate	$	6,259,212	$	6,615,243
Accumulated depreciation	(582,760)		(425,034)
Investments in real estate, net	$	5,676,452	$	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 year ended December 31, 2023, on the date of consolidation.


	Assets and Liabilities Consolidated During the Year Ended December 31, 2023
Assets:
Investments in real estate	$	49,939
Cash and cash equivalents	816
Restricted cash	1,329
Other assets	396
Intangible assets	398
Total assets	$	52,878
Liabilities:
Indebtedness	$	39,281
Accounts payable and accrued expenses	255
Accrued interest payable	283
Other liabilities	112
Total liabilities	39,931
Noncontrolling interest	256
Derecognition of investments in unconsolidated real estate entities	12,691
Total Liabilities and equity	$	52,878