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Equity Investments | 12 Months Ended
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Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract] |
Equity Investments | Equity Investments The Company's preferred equity ownership interests in entities that invest in multi-family properties where the risks and payment characteristics are equivalent to an equity investment are included in equity investments and accounted for under the equity method. As of January 1, 2020, the Company has elected to account for these investments using the fair value option (see Note 2). Accordingly, balances presented below as of December 31, 2020 are stated at fair value. The Company’s preferred equity ownership interests accounted for under the equity method consist of the following as of December 31, 2020 and 2019, respectively (dollar amounts in thousands):
|  | December 31, 2020 |  | December 31, 2019
Investment Name |  | Ownership Interest |  | Fair Value |  | 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% |  | $ | 11,441 |  |  | 45% |  | $ | 10,108 |
Somerset Deerfield Investor, LLC |  | 45% |  | 18,792 |  |  | 45% |  | 17,417 |
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% |  | 5,140 |  |  | 43% |  | 4,878 |
Audubon Mezzanine Holdings, L.L.C. (Series A) |  | 57% |  | 11,456 |  |  | 57% |  | 10,998 |
EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively) |  | 46% |  | 7,234 |  |  | 46% |  | 6,847 |
Walnut Creek Properties Holdings, L.L.C. |  | 36% |  | 8,803 |  |  | 36% |  | 8,288 |
Towers Property Holdings, LLC |  | 37% |  | 12,119 |  |  | 37% |  | 11,278 |
Mansions Property Holdings, LLC |  | 34% |  | 11,679 |  |  | 34% |  | 10,867 |
Sabina Montgomery Holdings, LLC - Series B and Oakley Shoals Apartments, LLC - Series A (collectively) |  | 43% |  | 4,320 |  |  | 43% |  | 4,062 |
Gen1814, LLC - Series A, Highlands - Mtg. Holdings, LLC - Series A, and Polos at Hudson Investments, LLC - Series A (collectively) |  | 37% |  | 9,966 |  |  | 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% |  | 12,337 |  |  | 53% |  | 11,944 |
DCP Gold Creek, LLC |  | 44% |  | 6,357 |  |  | — |  | — |
1122 Chicago DE, LLC |  | 53% |  | 7,222 |  |  | — |  | — |
Rigsbee Ave Holdings, LLC |  | 56% |  | 10,222 |  |  | — |  | — |
Bighaus, LLC |  | 42% |  | 14,525 |  |  | — |  | — |
FF/RMI 20 Midtown, LLC |  | 51% |  | 23,936 |  |  | — |  | — |
Lurin-RMI, LLC |  | 38% |  | 7,216 |  |  | — |  | — |
Total - Preferred Equity Ownership Interests |  |  |  | $ | 182,765 |  |  |  |  | $ | 106,083 |
The following table presents income from preferred equity ownership interests accounted for under the equity method using the fair value option for the year ended December 31, 2020 and income from preferred equity ownership interests accounted for under the equity method for the years ended December 31, 2019 and December 31, 2018, respectively (dollar amounts in thousands). Income from these investments, which includes $0.3 million of net unrealized gains during the year ended December 31, 2020 is presented in income from equity investments in the Company's accompanying consolidated statements of operations.
|  |  |  | For the Years Ended December 31,
Investment Name |  |  |  |  |  | 2020 |  | 2019 |  | 2018
BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) |  |  |  |  |  | $ | 1,260 |  |  | $ | 1,167 |  |  | $ | 1,050 |
Somerset Deerfield Investor, LLC |  |  |  |  |  | 2,168 |  |  | 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) |  |  |  |  |  | 551 |  |  | 539 |  |  | 76 |
Audubon Mezzanine Holdings, L.L.C. (Series A) |  |  |  |  |  | 1,213 |  |  | 1,224 |  |  | 59 |
EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively) |  |  |  |  |  | 782 |  |  | 741 |  |  | — |
Walnut Creek Properties Holdings, L.L.C. |  |  |  |  |  | 928 |  |  | 803 |  |  | — |
Towers Property Holdings, LLC |  |  |  |  |  | 1,243 |  |  | 638 |  |  | — |
Mansions Property Holdings, LLC |  |  |  |  |  | 1,198 |  |  | 615 |  |  | — |
Sabina Montgomery Holdings, LLC - Series B and Oakley Shoals Apartments, LLC - Series A (collectively) |  |  |  |  |  | 454 |  |  | 188 |  |  | — |
Gen1814, LLC - Series A, Highlands - Mtg. Holdings, LLC - Series A, and Polos at Hudson Investments, LLC - Series A (collectively) |  |  |  |  |  | 1,044 |  |  | 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) |  |  |  |  |  | 1,293 |  |  | 267 |  |  | — |
DCP Gold Creek, LLC |  |  |  |  |  | 701 |  |  | — |  |  | — |
1122 Chicago DE, LLC |  |  |  |  |  | 835 |  |  | — |  |  | — |
Rigsbee Ave Holdings, LLC |  |  |  |  |  | 1,148 |  |  | — |  |  | — |
Bighaus, LLC |  |  |  |  |  | 1,002 |  |  | — |  |  | — |
FF/RMI 20 Midtown, LLC |  |  |  |  |  | 686 |  |  | — |  |  | — |
Lurin-RMI, LLC |  |  |  |  |  | 81 |  |  | — |  |  | — |
Total - Preferred Equity Ownership Interests |  |  |  |  |  | $ | 16,587 |  |  | $ | 8,541 |  |  | $ | 1,436 |
The Company's equity ownership interests in entities that invest in multi-family properties and residential properties and loans that are included in equity investments and are accounted for under the equity method using the fair value option as of both December 31, 2020 and 2019, respectively, consist of the following (dollar amounts in thousands):
|  | December 31, 2020 |  | December 31, 2019
Investment Name |  | Ownership Interest |  | Fair Value |  | Ownership Interest |  | Fair Value
Joint venture equity investments in multi-family properties |  |  |  |  |  |  |  |
The Preserve at Port Royal Venture, LLC |  | — |  | $ | — |  |  | 77% |  | $ | 18,310 |
Equity investments in entities that invest in residential properties and loans |  |  |  |  |  |  |  |
Morrocroft Neighborhood Stabilization Fund II, LP |  | 11% |  | 13,040 |  |  | 11% |  | 11,796 |
Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I) |  | 49% |  | 63,290 |  |  | 49% |  | 53,776 |
Total - Equity Ownership Interests |  |  |  | $ | 76,330 |  |  |  |  | $ | 83,882 |
Income from equity ownership interests in entities that invest in multi-family properties and residential properties and loans that are accounted for under the equity method using the fair value option is presented in income from equity investments in the Company's accompanying consolidated statements of operations. The following table presents income from these investments for the years ended December 31, 2020, 2019 and 2018, respectively (dollar amounts in thousands):
|  |  |  | For the Years Ended December 31,
Investment Name |  |  |  |  |  | 2020 |  | 2019 |  | 2018
Joint venture equity investments in multi-family properties (1) |  |  |  |  |  |  |  |  |  |
The Preserve at Port Royal Venture, LLC (2) |  |  |  |  |  | $ | (949) |  |  | $ | 5,374 |  |  | $ | 1,778 |
Evergreens JV Holdings, LLC (3) |  |  |  |  |  | — |  |  | 5,107 |  |  | 4,312 |
WR Savannah Holdings, LLC (4) |  |  |  |  |  | — |  |  | — |  |  | 1,854 |
Equity investments in entities that invest in residential properties and loans |  |  |  |  |  |  |  |  |  |
Morrocroft Neighborhood Stabilization Fund II, LP |  |  |  |  |  | 1,519 |  |  | 843 |  |  | 1,131 |
Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I) |  |  |  |  |  | 9,513 |  |  | 3,776 |  |  | — |
Total - Equity Ownership Interests |  |  |  |  |  | $ | 10,083 |  |  | $ | 15,100 |  |  | $ | 9,075 |
(1)Includes net unrealized losses of $9.7 million and a realized gain of $8.8 million for the year ended December 31, 2020, net unrealized gains of $0.3 million and a realized gain of $10.2 million for the year ended December 31, 2019 and net unrealized gains of $4.0 million and a realized gain of $4.0 million for the year ended December 31, 2018. (2)The Company's equity investment was redeemed during the year ended December 31, 2020. (3)The Company's equity investment was redeemed during the year ended December 31, 2019. (4)The Company's equity investment was redeemed during the year ended December 31, 2018. Summary combined financial information for the Company’s equity investments as of December 31, 2020 and 2019, respectively, and for the years ended December 31, 2020, 2019, and 2018, respectively, is shown below (dollar amounts in thousands):
|  | December 31, 2020 |  | December 31, 2019
Balance Sheets: |  |  |  |
Real estate, net |  | $ | 917,392 |  |  | $ | 829,935 |
Residential loans, at fair value |  | 268,693 |  |  | 266,739 |
Other assets |  | 190,429 |  |  | 126,491 |
Total assets |  | $ | 1,376,514 |  |  | $ | 1,223,165 |
Notes payable, net |  | $ | 649,241 |  |  | $ | 610,636 |
Collateralized debt obligations |  | 233,765 |  |  | 233,765 |
Other liabilities |  | 23,734 |  |  | 23,387 |
Total liabilities |  | 906,740 |  |  | 867,788 |
Members' equity |  | 469,774 |  |  | 355,377 |
Total liabilities and members' equity |  | $ | 1,376,514 |  |  | $ | 1,223,165 |
|  | For the Years Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Operating Statements: (1) |  |  |  |  |  |
Rental revenues |  | $ | 80,339 |  |  | $ | 63,265 |  |  | $ | 37,921 |
Real estate sales |  | 54,100 |  |  | 42,350 |  |  | 49,750 |
Cost of real estate sales |  | (32,779) |  |  | (25,534) |  |  | (37,452) |
Interest income |  | 14,438 |  |  | 9,214 |  |  | — |
Realized and unrealized gains, net |  | 27,107 |  |  | 10,452 |  |  | — |
Other income |  | 7,566 |  |  | 4,697 |  |  | 1,719 |
Operating expenses |  | (54,691) |  |  | (42,383) |  |  | (20,599) |
Income before debt service, acquisition costs, and depreciation and amortization |  | 96,080 |  |  | 62,061 |  |  | 31,339 |
Interest expense |  | (36,601) |  |  | (28,340) |  |  | (16,456) |
Acquisition costs |  | — |  |  | — |  |  | (183) |
Depreciation and amortization |  | (38,112) |  |  | (45,548) |  |  | (15,176) |
Net income (loss) |  | $ | 21,367 |  |  | $ | (11,827) |  |  | $ | (476) |
(1)The Company records income (loss) from equity investments 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 equity investments.

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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 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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