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Note 4 - Investments in Unconsolidated Real Estate
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 4: Investments in Unconsolidated Real Estate

 

As of June 30, 2025, our investments in unconsolidated real estate entities had aggregate land, building, and capitalized construction in progress costs of $347,756 and aggregate construction debt of $226,910. We do not guarantee any debt, capital payout or other obligations associated with these entities. We recognize earnings or losses from our investments in unconsolidated real estate entities consisting of our proportionate share of the net earnings or losses of the joint ventures. We recognized losses of $562 and $1,151 from equity method investments during the three and six months ended June 30, 2025, respectively, and $850 and $1,679, respectively, during the three and six months ended June 30, 2024, and these losses were recorded in loss from investments in unconsolidated real estate entities in our condensed consolidated statements of operations.

 

The following table summarizes our investments in unconsolidated real estate entities as of June 30, 2025 and December 31, 2024:

 

            

Carrying Value As Of

 

Investments in Unconsolidated Real Estate Entities

 

Location

 

Units (1)

  

IRT Ownership Interest

  

June 30, 2025

  

December 31, 2024

 

Metropolis at Innsbrook (2)

 

Richmond, VA

  402   84.8% $20,681  $21,163 

Views of Music City II (3)

 

Nashville, TN

  209   50.0%  5,912   5,905 

Lakeline Station

 

Austin, TX

  378   90.0%  39,011   36,106 

The Mustang (4)

 

Dallas, TX

  275   85.0%  30,577   28,801 

Nexton Pine Hollow

 

Charleston, SC

  324   90.0%  10,739   — 

Total

  1,588     $106,920  $91,975 

 

 

(1)

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

 

(2)

The Metropolis at Innsbrook is an operating property that was listed for sale during the three months ended March 31, 2025 and sold on July 21, 2025. We received $31,085 in proceeds from the sale, comprised of a return of our initial investment of $24,501 and equity proceeds of $6,584. We expect to recognize a gain of approximately $10,404 from this sale during the three months ended September 30, 2025.

 

(3)

Views of Music City II is an operating property. Our joint venture partner has provided us with a notice of intent to redeem our investment comprised of a return of our initial capital of $5,453 and preferred return in the amount of approximately $3,549 in September 2025. We expect to recognize the preferred return in income (loss) from investments in unconsolidated real estate entities in our condensed consolidated statements of operations during the three months ended September 30, 2025.

 

(4)

The Mustang is an operating property consisting of 275 total units. We have a call option that gives us the right to buy the property upon the earlier of the date upon which the property achieves 85% occupancy or August 15, 2025.