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Equity Investments, at Fair Value

3 Months Ended

Mar. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Equity Investments, at Fair Value

Equity Investments, at Fair Value

The Company's equity investments consist of, or have consisted 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 (or multi-family preferred equity ownership interests), equity ownership interests in entities that invest in single-family properties and residential loans (or single-family equity ownership interests) and joint venture equity investments in multi-family properties. The Company's equity investments are accounted for under the equity method and are presented at fair value on its condensed consolidated balance sheets as a result of a fair value election. The following table presents the Company's equity investments as of March 31, 2021 and December 31, 2020, respectively (dollar amounts in thousands):

						March 31, 2021												December 31, 2020
Investment Name						Ownership Interest						Fair Value						Ownership Interest						Fair Value
Multi-Family Preferred Equity Ownership Interests
BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively)						45%						$	11,788					45%						$	11,441
Somerset Deerfield Investor, LLC						45%						18,978						45%						18,792
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%						5,264						43%						5,140
Audubon Mezzanine Holdings, L.L.C. (Series A)						57%						11,771						57%						11,456
EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively)						46%						7,300						46%						7,234
Walnut Creek Properties Holdings, L.L.C.						36%						8,940						36%						8,803
Towers Property Holdings, LLC						37%						12,333						37%						12,119
Mansions Property Holdings, LLC						34%						11,885						34%						11,679
Sabina Montgomery Holdings, LLC - Series B and Oakley Shoals Apartments, LLC - Series A (collectively)						43%						4,385						43%						4,320
Gen1814, LLC - Series A, Highlands - Mtg. Holdings, LLC - Series A, and Polos at Hudson Investments, LLC - Series A (collectively)						37%						10,117						37%						9,966
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%						12,515						53%						12,337
DCP Gold Creek, LLC						44%						6,469						44%						6,357
1122 Chicago DE, LLC						53%						7,342						53%						7,222
Rigsbee Ave Holdings, LLC						56%						10,398						56%						10,222
Bighaus, LLC						42%						14,751						42%						14,525
FF/RMI 20 Midtown, LLC						51%						24,243						51%						23,936
Lurin-RMI, LLC						38%						7,356						38%						7,216
Total - Multi-Family Preferred Equity Ownership Interests												185,835												182,765
Single-Family Equity Ownership Interests
Morrocroft Neighborhood Stabilization Fund II, LP						11%						14,228						11%						13,040
Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I)						49%						60,002						49%						63,290
Total - Single-Family Equity Ownership Interests												74,230												76,330
Total												$	260,065											$	259,095

The Company records its equity in earnings or losses from its multi-family preferred equity ownership interests under the hypothetical liquidation of book value method of accounting due to the structures and the preferences it receives on the distributions from these entities pursuant to the respective agreements. Under this method, the Company recognizes income or loss in each period based on the change in liquidation proceeds it would receive from a hypothetical liquidation of its investment. Pursuant to the fair value election, changes in fair value of the Company's multi-family preferred equity ownership interests are reported in current period earnings. The following table presents income from multi-family preferred equity ownership interests for the three months ended March 31, 2021 and 2020, respectively (dollar amounts in thousands). Income from these investments, which includes $0.1 million of net unrealized gains and $4.3 million of net unrealized losses during the three months ended March 31, 2021 and 2020, respectively, is presented in income from equity investments in the Company's accompanying condensed consolidated statements of operations.    

						Three Months Ended March 31,
Investment Name						2021						2020
BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively)						$	347					$	245
Somerset Deerfield Investor, LLC						466						159
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)						124						(66)
Audubon Mezzanine Holdings, L.L.C. (Series A)						364						(109)
EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively)						179						(101)
Walnut Creek Properties Holdings, L.L.C.						277						(94)
Towers Property Holdings, LLC						379						(161)
Mansions Property Holdings, LLC						365						(155)
Sabina Montgomery Holdings, LLC - Series B and Oakley Shoals Apartments, LLC - Series A (collectively)						135						(54)
Gen1814, LLC - Series A, Highlands - Mtg. Holdings, LLC - Series A, and Polos at Hudson Investments, LLC - Series A (collectively)						314						(131)
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)						388						(169)
DCP Gold Creek, LLC						202						(120)
1122 Chicago DE, LLC						221						(60)
Rigsbee Ave Holdings, LLC						320						(147)
Bighaus, LLC						436						—
FF/RMI 20 Midtown, LLC						746						—
Lurin-RMI, LLC						236						—
Total Income (Loss) - Multi-Family Preferred Equity Ownership Interests						$	5,499					$	(963)

Income from single-family equity ownership interests and joint venture equity investments in multi-family properties is presented in income from equity investments in the Company's accompanying condensed consolidated statements of operations. The following table presents income (loss) from these investments for the three months ended March 31, 2021 and 2020, respectively (dollar amounts in thousands):    

						Three Months Ended March 31,
Investment Name						2021						2020
Single-Family Equity Ownership Interests
Morrocroft Neighborhood Stabilization Fund II, LP						$	1,188					$	218
Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I)						(3,288)						1,000
Total (Loss) Income - Single-Family Equity Ownership Interests						$	(2,100)					$	1,218
Joint Venture Equity Investments in Multi-Family Properties (1)
The Preserve at Port Royal Venture, LLC (2)						$	—					$	239
Total Income - Joint Venture Equity Investments in Multi-Family Properties						$	—					$	239

(1)Includes net unrealized gain of $0.2 million for the three months ended March 31, 2020.

(2)The Company's equity investment was redeemed during the year ended December 31, 2020.

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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

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