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Investments in Unconsolidated Entities | 12 Months Ended
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Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Entities | estments in Unconsolidated Entities The Company’s investments in unconsolidated entities accounted for under the equity method are comprised of preferred equity ownership interests in entities that invest in multi-family properties where the risks and payment characteristics are equivalent to an equity investment and consist of the following as of December 31, 2019 and 2018, respectively (dollar amounts in thousands):
|  | December 31, 2019 |  | December 31, 2018
Investment Name |  | Ownership Interest |  | Carrying Amount |  | Ownership Interest |  | Carrying Amount
BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) |  | 45% |  | $ | 10,108 |  |  | 45% |  | $ | 8,948 |
Somerset Deerfield Investor, LLC |  | 45% |  | 17,417 |  |  | 45% |  | 16,266 |
RS SWD Owner, LLC, RS SWD Mitchell Owner, LLC, RS SWD IF Owner, LLC, RS SWD Mullis Owner, LLC, RS SWD JH Mullis Owner, LLC and RS SWD Saltzman Owner, LLC (collectively) |  | 43% |  | 4,878 |  |  | 43% |  | 4,714 |
Audubon Mezzanine Holdings, L.L.C. (Series A) |  | 57% |  | 10,998 |  |  | 57% |  | 10,544 |
EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively) |  | 46% |  | 6,847 |  |  | — |  | — |
Walnut Creek Properties Holdings, L.L.C. |  | 36% |  | 8,288 |  |  | — |  | — |
Towers Property Holdings, LLC |  | 37% |  | 11,278 |  |  | — |  | — |
Mansions Property Holdings, LLC |  | 34% |  | 10,867 |  |  | — |  | — |
Sabina Montgomery Holdings, LLC - Series B and Oakley Shoals Apartments, LLC - Series A (collectively) |  | 43% |  | 4,062 |  |  | — |  | — |
Gen1814, LLC - Series A, Highlands - Mtg. Holdings, LLC - Series A, and Polos at Hudson Investments, LLC - Series A (collectively) |  | 37% |  | 9,396 |  |  | — |  | — |
Axis Apartments Holdings, LLC, Arbor-Stratford Holdings II, LLC - Series B, Highlands - Mtg. Holdings, LLC - Series B, Oakley Shoals Apartments, LLC - Series C, and Woodland Park Apartments II, LLC (collectively) |  | 53% |  | 11,944 |  |  | — |  | — |
Total - Equity Method |  |  |  | $ | 106,083 |  |  |  |  | $ | 40,472 |
The Company’s investments in unconsolidated entities accounted for under the equity method using the fair value option consist of the following as of December 31, 2019 and 2018, respectively (dollar amounts in thousands):
|  | December 31, 2019 |  | December 31, 2018
Investment Name |  | Ownership Interest |  | Carrying Amount |  | Ownership Interest |  | Carrying Amount
Joint venture equity investments in multi-family properties |  |  |  |  |  |  |  |
The Preserve at Port Royal Venture, LLC |  | 77% |  | $ | 18,310 |  |  | 77% |  | $ | 13,840 |
Evergreens JV Holdings, LLC (1) |  | — |  | — |  |  | 85% |  | 8,200 |
Equity investments in entities that invest in residential properties and loans |  |  |  |  |  |  |  |
Morrocroft Neighborhood Stabilization Fund II, LP |  | 11% |  | 11,796 |  |  | 11% |  | 10,954 |
Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I) |  | 49% |  | 53,776 |  |  | — |  | — |
Total - Fair Value Option |  |  |  | $ | 83,882 |  |  |  |  | $ | 32,994 |
(1) The Company’s equity investment was redeemed during the year ended December 31, 2019. The following table presents income from investments in unconsolidated entities accounted for under the equity method for the years ended December 31, 2019, 2018, and 2017, respectively (dollar amounts in thousands):
|  | For the Years Ended December 31,
Investment Name |  | 2019 |  | 2018 |  | 2017
BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) |  | $ | 1,167 |  |  | $ | 1,050 |  |  | $ | 996 |
Somerset Deerfield Investor, LLC |  | 1,992 |  |  | 251 |  |  | — |
RS SWD Owner, LLC, RS SWD Mitchell Owner, LLC, RS SWD IF Owner, LLC, RS SWD Mullis Owner, LLC, RS SWD JH Mullis Owner, LLC and RS SWD Saltzman Owner, LLC (collectively) |  | 539 |  |  | 76 |  |  | — |
Audubon Mezzanine Holdings, L.L.C. (Series A) |  | 1,224 |  |  | 59 |  |  | — |
EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively) |  | 741 |  |  | — |  |  | — |
Walnut Creek Properties Holdings, L.L.C. |  | 803 |  |  | — |  |  | — |
Towers Property Holdings, LLC |  | 638 |  |  | — |  |  | — |
Mansions Property Holdings, LLC |  | 615 |  |  | — |  |  | — |
Sabina Montgomery Holdings, LLC - Series B and Oakley Shoals Apartments, LLC - Series A (collectively) |  | 188 |  |  | — |  |  | — |
Gen1814, LLC - Series A, Highlands - Mtg. Holdings, LLC - Series A, and Polos at Hudson Investments, LLC - Series A (collectively) |  | 367 |  |  | — |  |  | — |
Axis Apartments Holdings, LLC, Arbor-Stratford Holdings II, LLC - Series B, Highlands - Mtg. Holdings, LLC - Series B, Oakley Shoals Apartments, LLC - Series C, and Woodland Park Apartments II, LLC (collectively) |  | 267 |  |  | — |  |  | — |
Autumnwood Investments LLC (1) |  | — |  |  | — |  |  | 265 |
200 RHC Hoover, LLC (2) |  | — |  |  | — |  |  | 275 |
(1) | Includes income recognized from redemption of the Company’s investment during the year ended December 31, 2017.
(2) | On March 31, 2017, the Company reconsidered its evaluation of its variable interest in Riverchase Landing and determined that it became the primary beneficiary of Riverchase Landing. Accordingly, on this date, the Company consolidated Riverchase Landing into its consolidated financial statements (see Note 9).
The following table presents income from investments in unconsolidated entities accounted for under the equity method using the fair value option for the years ended December 31, 2019, 2018, and 2017, respectively (dollar amounts in thousands):
|  | For the Years Ended December 31,
Investment Name |  | 2019 |  | 2018 |  | 2017
Joint venture equity investments in multi-family properties |  |  |  |  |  |
Evergreens JV Holdings, LLC (1) |  | $ | 5,107 |  |  | $ | 4,312 |  |  | $ | 571 |
The Preserve at Port Royal Venture, LLC |  | 5,374 |  |  | 1,778 |  |  | 1,729 |
WR Savannah Holdings, LLC (1) |  | — |  |  | 1,854 |  |  | 1,386 |
Bent Tree JV Holdings, LLC (1) |  | — |  |  | — |  |  | 1,795 |
Summerchase LR Partners LLC (1) |  | — |  |  | — |  |  | 569 |
Lake Mary Realty Partners, LLC (1) |  | — |  |  | — |  |  | 2,745 |
Equity investments in entities that invest in residential properties and loans |  |  |  |  |  |
Morrocroft Neighborhood Stabilization Fund II, LP |  | 843 |  |  | 1,131 |  |  | 1,591 |
Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I) |  | 3,776 |  |  | — |  |  | — |
(1) | Includes income recognized from redemption of the Company’s investment.
Summary combined financial information for the Company’s investments in unconsolidated entities as of December 31, 2019 and 2018, respectively, and for the years ended December 31, 2019, 2018, and 2017, respectively, is shown below (dollar amounts in thousands):
|  | December 31, 2019 |  | December 31, 2018
Balance Sheets: |  |  |  |
Real estate, net |  | $ | 829,935 |  |  | $ | 479,862 |
Distressed and other residential mortgage loans, at fair value |  | 266,739 |  |  | — |
Other assets |  | 126,491 |  |  | 37,679 |
Total assets |  | $ | 1,223,165 |  |  | $ | 517,541 |
Notes payable, net |  | $ | 610,636 |  |  | $ | 381,196 |
Securitized debt |  | 233,765 |  |  | — |
Other liabilities |  | 23,387 |  |  | 10,546 |
Total liabilities |  | 867,788 |  |  | 391,742 |
Members' equity |  | 355,377 |  |  | 125,799 |
Total liabilities and members' equity |  | $ | 1,223,165 |  |  | $ | 517,541 |
|  | For the Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Operating Statements: (1) |  |  |  |  |  |
Rental revenues |  | $ | 63,265 |  |  | $ | 37,921 |  |  | $ | 37,196 |
Real estate sales |  | 42,350 |  |  | 49,750 |  |  | 92,900 |
Cost of real estate sales |  | (25,534 | ) |  | (37,452 | ) |  | (55,544 | )
Interest income |  | 9,214 |  |  | — |  |  | — |
Realized and unrealized gains, net |  | 10,452 |  |  | — |  |  | — |
Other income |  | 4,697 |  |  | 1,719 |  |  | 2,906 |
Operating expenses |  | (42,383 | ) |  | (20,599 | ) |  | (21,375 | )
Income before debt service, acquisition costs, and depreciation and amortization |  | 62,061 |  |  | 31,339 |  |  | 56,083 |
Interest expense |  | (28,340 | ) |  | (16,456 | ) |  | (16,704 | )
Acquisition costs |  | — |  |  | (183 | ) |  | (432 | )
Depreciation and amortization |  | (45,548 | ) |  | (15,176 | ) |  | (13,659 | )
Net (loss) income |  | $ | (11,827 | ) |  | $ | (476 | ) |  | $ | 25,288 |
(1) The Company records income (loss) from investments in unconsolidated entities under either the equity method of accounting or the fair value option. Accordingly, the combined net (loss) income shown above is not indicative of the income recognized by the Company from 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 -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.3A-04) -URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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