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Investments in Unconsolidated Entities
 12 Months Ended
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.