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Investment in Unconsolidated Entities | 3 Months Ended
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Mar. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Investment in Unconsolidated Entities | INVESTMENT IN UNCONSOLIDATED ENTITIES A summary of the Company’s investments in unconsolidated entities is as follows (in thousands):
|  | March 31, 2024 |  | December 31, 2023
GB Challenger, LLC |  | $ | — |  |  | $ | 52,666 |
GBTM Sendera, LLC |  | 20,773 |  |  | 19,866 |
EJB River Holdings, LLC |  | 11,637 |  |  | 10,867 |
BHome Mortgage, LLC |  | 1,503 |  |  | 1,255 |
Rainwater Crossing Single-Family, LLC |  | $ | 788 |  |  | $ | — |
Total investment in unconsolidated entities |  | $ | 34,701 |  |  | $ | 84,654 |
' Sale of GB Challenger Ownership Interest Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC (“Challenger”) to the entity that already held the controlling interest in Challenger for approximately $64.0 million in cash. A gain on this sale of $10.7 million is included in other income, net in the condensed consolidated statements of income. Rainwater Crossing Single-Family, LLC Joint Venture On February 15, 2024, a wholly owned subsidiary of the Company established a joint venture (“JV”), Rainwater Crossing Single-Family, LLC (“Rainwater Crossing”), with Rainwater Single Family S-CORP to develop a tract of land in Celina, Texas. Both parties hold a 50% ownership interest in Rainwater Crossing. The Company evaluated the JV agreements and determined that it has a variable interest in this entity, but the Company is not its primary beneficiary. Specifically, the Company determined that it 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. Therefore, the Company’s investment in Rainwater Crossing is treated as an unconsolidated investment under the equity method of accounting and is included in investments in unconsolidated entities in the Company’s condensed consolidated balance sheets. As of March 31, 2024, the Company’s maximum exposure to loss as a result from its involvement with Rainwater Crossing was approximately $20.6 million, representing its $0.8 million investment and the Company’s remaining commitment to contribute to the joint venture $15.0 million in quarterly payments through March 31, 2029 and $4.8 million upon the joint venture’s initial land contribution. The Company will also fund the development costs related to this project. A summary of the unaudited condensed financial information of the five unconsolidated entities that are accounted for by the equity method is as follows (in thousands):
| March 31, 2024 |  | December 31, 2023
Assets: |  |  |
Cash | $ | 7,752 |  |  | $ | 23,549 |
Accounts receivable | 375 |  |  | 4,207 |
Bonds and notes receivable | 19,487 |  |  | 2,838 |
Loans held for sale, at fair value | 10,106 |  |  | 7,452 |
Inventory | 65,036 |  |  | 182,550 |
Other assets | 574 |  |  | 6,425 |
Total assets | $ | 103,330 |  |  | $ | 227,021 |
Liabilities: |  |  |
Accounts payable | $ | 3,157 |  |  | $ | 7,151 |
Accrued expenses and other liabilities | 2,994 |  |  | 10,265 |
Notes payable | 32,058 |  |  | 49,701 |
Total liabilities | $ | 38,209 |  |  | $ | 67,117 |
Owners’ equity: |  |  |
Green Brick | $ | 33,001 |  |  | $ | 80,968 |
Others | 32,120 |  |  | 78,936 |
Total owners’ equity | $ | 65,121 |  |  | $ | 159,904 |
Total liabilities and owners’ equity | $ | 103,330 |  |  | $ | 227,021 |
| Three Months Ended March 31,
| 2024 |  | 2023
Revenues | $ | 29,739 |  |  | $ | 58,323 |
Costs and expenses | 24,507 |  |  | 49,726 |
Net earnings of unconsolidated entities | $ | 5,232 |  |  | $ | 8,597 |
Company’s share in net earnings of unconsolidated entities | $ | 2,592 |  |  | $ | 4,221 |
A summary of the Company’s share in net earnings by unconsolidated entity is as follows (in thousands):
| Three Months Ended March 31,
| 2024 |  | 2023
GB Challenger, LLC(1) | $ | 929 |  |  | $ | 3,025 |
BHome Mortgage, LLC | 893 |  |  | 693 |
EJB River Holdings, LLC | 770 |  |  | 503 |
Total net earnings from unconsolidated entities | $ | 2,592 |  |  | $ | 4,221 |

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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/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: 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 3: 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 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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