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Investments, Equity Method and Joint Ventures | 12 Months Ended
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Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | INVESTMENTS IN UNCONSOLIDATED ENTITIES We participate in a number of joint ventures and other investments with independent third parties. These entities generally focus on homebuilding, land development, and mortgage services to homebuyers. The Company’s investment in these entities is included in investments in unconsolidated entities in the Company’s consolidated balance sheets under the equity method of accounting. A summary of the Company’s investments in unconsolidated entities is as follows (in thousands):
|  | December 31, 2023 |  | December 31, 2022
GB Challenger, LLC* |  | $ | 52,666 |  |  | $ | 49,897 |
GBTM Sendera, LLC |  | 19,866 |  |  | 14,319 |
EJB River Holdings, LLC |  | 10,867 |  |  | 8,554 |
Green Brick Mortgage, LLC |  | — |  |  | 307 |
BHome Mortgage, LLC |  | 1,255 |  |  | 1,147 |
Total investment in unconsolidated entities |  | $ | 84,654 |  |  | $ | 74,224 |
*The Company sold its 49.9% ownership interest in GB Challenger, LLC (“Challenger”) effective February 1, 2024. Challenger In August 2017, the Company acquired a 49.9% ownership interest in GB Challenger, LLC (“Challenger”). Challenger constructs townhouses, single family homes, and luxury patio homes and operates in Colorado Springs and Denver, Colorado. As of December 31, 2023, the Company’s investment in Challenger was carried at cost, as adjusted for the Company’s share of income or losses and distributions received, as well as for adjustments related to basis differences between the Company’s cost and the Company’s underlying equity in net assets recorded in Challenger’s financial statements as of the date of acquisition. As of December 31, 2023, the carrying value of the investment in Challenger was $52.7 million. The underlying 49.9% equity in net assets of Challenger was $50.4 million as of December 31, 2023. The $2.3 million difference represented the premium paid for the Company’s equity interest in excess of Challenger’s carrying value. This basis difference primarily related to the estimated fair value of inventory, as well as the Challenger Homes trade name and capitalized acquisition costs. The amortization of the basis differences related to inventory was recognized as homes were delivered to homebuyers and the trade name had an amortization period of ten years. The amortization of the basis difference was a reduction of equity in income of unconsolidated entities. The Company recognized $10.9 million, $20.9 million, and $14.8 million, related to Challenger in equity in income of unconsolidated entities during the years ended December 31, 2023, 2022, and 2021, respectively. Effective February 1, 2024, the Company sold its ownership interest in Challenger to the entity that already held the controlling interest in Challenger for approximately $64.0 million in cash, which is subject to post-closing adjustments. The Company intends to use the proceeds from the transaction for investment in and expansion of opportunities with those builders in which it holds a controlling or one-hundred percent (100%) ownership interest, particularly including the growth and expansion of its Trophy Signature Homes brand into the Austin market and other potential new markets. GBTM Sendera, LLC In August 2020, the joint venture GBTM Sendera, LLC (“GBTM Sendera”) was formed by GRBK Edgewood, LLC (“GRBK Edgewood”) and TM Sendera, LLC (“TM Sendera”) to acquire and develop a tract of land in Fort Worth, Texas. Each party holds a 50% ownership interest in GBTM Sendera and share equally in the profits and losses of GBTM Sendera, with the exception of certain customary fees. The Company made capital contributions of $5.0 million and $3.6 million during the years ended December 31, 2023 and 2022, respectively. The Company made no capital contributions during the year ended December 31, 2021. Following our analysis of GBTM Sendera’s operating agreement, the Company has determined that its investment in GBTM Sendera is not a VIE as the joint venture’s equity at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support from its members. As of December 31, 2023, the carrying amount of GBTM Sendera assets and liabilities were $44.4 million and $7.5 million, respectively. As of December 31, 2023, the Company’s maximum exposure to loss as a result of this joint venture was $19.9 million, representing the Company’s investment in GBTM Sendera. EJB River Holdings In December 2018, the joint venture EJB River Holdings (“EJB”) was formed by TPG to acquire and develop a tract of land in Gwinnett County, Georgia. In May 2019, East Jones Bridge, LLC was admitted as a member, which resulted in TPG having a 50% ownership interest in EJB River Holdings. As of December 31, 2023, EJB River Holdings had borrowings of $6.7 million to finance its land acquisition and development. A wholly owned subsidiary of the Company provided a limited $2.0 million guarantee in connection with EJB’s initial borrowings that was removed as of December 31, 2023. Following our analysis of the provisions in the EJB River Holdings’ operating agreement, the Company has determined that EJB River Holdings is a VIE, but that we are not the primary beneficiary. Specifically, the Company does not direct the activities that most significantly impact the entity’s economic performance as key decisions are subject to the approval of a management committee where both members are equally represented. As of December 31, 2023, the carrying amounts of assets and liabilities of EJB River Holdings were $29.2 million and $7.5 million, respectively. As of December 31, 2023 the Company’s maximum exposure to loss as a result of its involvement with EJB River Holdings was $10.9 million, representing the Company’s investment in EJB. Green Brick Mortgage In June 2018, the Company formed a joint venture with PrimeLending to provide mortgage loan origination services to our builders. The Company owned a 49.9% equity interest in Green Brick Mortgage, LLC. In 2022, this joint venture was terminated and the Company incurred a de minimis loss upon dissolution. BHome Mortgage In May 2020, the Company established a joint venture, BHome Mortgage, LLC (“BHome Mortgage”) with First Continental Mortgage, Ltd., to provide mortgage related services to homebuyers. The Company owns 49% of BHome Mortgage. BHome Mortgage received initial capital contributions of approximately $0.5 million from its two members in accordance with their membership interest during the year ended December 31, 2021. A summary of the financial information of the unconsolidated entities that are accounted for by the equity method, as described above, is as follows (in thousands):
|  |  | December 31, 2023 |  | December 31, 2022
Assets: |  |  |  |  |
Cash |  |  | $ | 23,549 |  |  | $ | 15,265 |
Accounts receivable |  |  | 4,207 |  |  | 4,972 |
Bonds and notes receivable |  |  | 2,838 |  |  | 10,381 |
Loans held for sale, at fair value |  |  | 7,452 |  |  | 8,829 |
Inventory |  |  | 182,550 |  |  | 195,732 |
Other assets |  |  | 6,425 |  |  | 9,352 |
Total assets |  |  | $ | 227,021 |  |  | $ | 244,531 |
Liabilities: |  |  |  |  |
Accounts payable |  |  | $ | 7,151 |  |  | $ | 10,166 |
Accrued expenses and other liabilities |  |  | 10,265 |  |  | 12,177 |
Notes payable |  |  | 49,701 |  |  | 82,484 |
Total liabilities |  |  | $ | 67,117 |  |  | $ | 104,827 |
Owners’ equity: |  |  |  |  |
Green Brick |  |  | $ | 80,968 |  |  | $ | 70,812 |
Others |  |  | 78,936 |  |  | 68,892 |
Total owners’ equity |  |  | $ | 159,904 |  |  | $ | 139,704 |
Total liabilities and owners’ equity |  |  | $ | 227,021 |  |  | $ | 244,531 |
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Revenues | $ | 270,322 |  |  | $ | 301,818 |  |  | $ | 221,190 |
Costs and expenses | 236,038 |  |  | 250,240 |  |  | 181,429 |
Net earnings of unconsolidated entities | $ | 34,284 |  |  | $ | 51,578 |  |  | $ | 39,761 |
Company’s share in net earnings of unconsolidated entities | $ | 16,742 |  |  | $ | 25,626 |  |  | $ | 19,713 |
A summary of the Company’s share in net earnings by unconsolidated entity is as follows (in thousands):
|  | Years Ended December 31,
|  | 2023 |  | 2022 |  | 2021
GB Challenger, LLC |  | $ | 10,921 |  |  | $ | 20,921 |  |  | $ | 14,831 |
EJB River Holdings, LLC |  | 2,812 |  |  | 2,424 |  |  | 833 |
BHome Mortgage, LLC |  | 3,009 |  |  | 1,548 |  |  | 1,585 |
Green Brick Mortgage, LLC |  | — |  |  | 733 |  |  | 2,464 |
Total net earnings from unconsolidated entities |  | $ | 16,742 |  |  | $ | 25,626 |  |  | $ | 19,713 |
During the years ended December 31, 2023, 2022, and 2021, the Company did not identify indicators of impairment for its investments in unconsolidated entities.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
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