XML 32 R15.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Equity Investments, at Fair Value | 12 Months Ended
--- | ---
Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract] |
Equity Investments, at Fair Value | Equity Investments, at Fair ValueThe 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 invest in or originate 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 consolidated balance sheets as a result of a fair value election. T he following table presents the Company's equity investments as of December 31, 2021 and 2020, respectively (dollar amounts in thousands):
|  | December 31, 2021 |  | December 31, 2020
Investment Name |  | Ownership Interest |  | Fair Value |  | Ownership Interest |  | Fair Value
Multi-Family Preferred Equity Ownership Interests |  |  |  |  |  |  |  |
Somerset Deerfield Investor, LLC |  | 45% |  | $ | 19,965 |  |  | 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% |  | 5,725 |  |  | 43% |  | 5,140 |
Walnut Creek Properties Holdings, L.L.C. |  | 36% |  | 9,482 |  |  | 36% |  | 8,803 |
DCP Gold Creek, LLC |  | 44% |  | 6,686 |  |  | 44% |  | 6,357 |
1122 Chicago DE, LLC |  | 53% |  | 7,723 |  |  | 53% |  | 7,222 |
Rigsbee Ave Holdings, LLC |  | 56% |  | 11,331 |  |  | 56% |  | 10,222 |
Bighaus, LLC |  | 42% |  | 15,471 |  |  | 42% |  | 14,525 |
FF/RMI 20 Midtown, LLC |  | 51% |  | 25,499 |  |  | 51% |  | 23,936 |
Lurin-RMI, LLC |  | 38% |  | 9,548 |  |  | 38% |  | 7,216 |
Palms at Cape Coral, LLC |  | 34% |  | 5,175 |  |  | — |  | — |
America Walks at Port St. Lucie, LLC |  | 62% |  | 30,383 |  |  | — |  | — |
EHOF-NYMT Sunset Apartments Preferred, LLC |  | 57% |  | 17,213 |  |  | — |  | — |
Lucie at Tradition Holdings, LLC |  | 70% |  | 16,597 |  |  | — |  | — |
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 |
Audubon Mezzanine Holdings, L.L.C. (Series A) |  | — |  | — |  |  | 57% |  | 11,456 |
EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively) |  | — |  | — |  |  | 46% |  | 7,234 |
Towers Property Holdings, LLC |  | — |  | — |  |  | 37% |  | 12,119 |
Mansions Property Holdings, LLC |  | — |  | — |  |  | 34% |  | 11,679 |
Sabina Montgomery Holdings, LLC - Series B and Oakley Shoals Apartments, LLC - Series A (collectively) |  | — |  | — |  |  | 43% |  | 4,320 |
Gen1814, LLC - Series A, Highlands - Mtg. Holdings, LLC - Series A, and Polos at Hudson Investments, LLC - Series A (collectively) |  | — |  | — |  |  | 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% |  | 12,337 |
Total - Multi-Family Preferred Equity Ownership Interests |  |  |  | 180,798 |  |  |  |  | 182,765 |
Joint Venture Equity Investments in Multi-Family Properties |  |  |  |  |  |  |  |
GWR Cedars Partners, LLC |  | 70% |  | 3,770 |  |  | — |  | — |
GWR Gateway Partners, LLC |  | 70% |  | 6,670 |  |  | — |  | — |
Total - Joint Venture Equity Investments in Multi-Family Properties |  |  |  | 10,440 |  |  |  |  | — |
Single-Family Equity Ownership Interests |  |  |  |  |  |  |  |
Morrocroft Neighborhood Stabilization Fund II, LP |  | 11% |  | 19,143 |  |  | 11% |  | 13,040 |
Constructive Loans, LLC (1) |  | — |  | 29,250 |  |  | — |  | — |
Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I) |  | — |  | — |  |  | 49% |  | 63,290 |
Total - Single-Family Equity Ownership Interests |  |  |  | 48,393 |  |  |  |  | 76,330 |
Total |  |  |  | $ | 239,631 |  |  |  |  | $ | 259,095 |
(1)As of December 31, 2021, the Company has the option to purchase 50% of the issued and outstanding interests of an entity that originates residential loans. The Company accounts for this investment using the equity method and has elected the fair value option. After acquiring this investment, the Company purchased $94.0 million of residential loans from the entity for the year ended December 31, 2021. 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. On January 1, 2020, the Company elected to account for its multi-family preferred equity ownership interests using the fair value option (see Note 2). 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 for the years ended December 31, 2021 and 2020. The following table presents income from multi-family preferred equity ownership interests for the years ended December 31, 2021, 2020, and 2019, respectively (dollar amounts in thousands). Income from these investments is presented in income from equity investments in the Company's accompanying consolidated statements of operations. Income from these investments during the years ended December 31, 2021 and 2020 includes $0.4 million and $0.3 million of net unrealized gains, respectively.
|  |  |  | For the Years Ended December 31,
Investment Name |  |  |  |  |  | 2021 |  | 2020 |  | 2019
BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) |  |  |  |  |  | $ | 1,304 |  |  | $ | 1,260 |  |  | $ | 1,167 |
Somerset Deerfield Investor, LLC |  |  |  |  |  | 2,295 |  |  | 2,168 |  |  | 1,992 |
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) |  |  |  |  |  | 585 |  |  | 551 |  |  | 539 |
Audubon Mezzanine Holdings, L.L.C. (Series A) |  |  |  |  |  | 1,251 |  |  | 1,213 |  |  | 1,224 |
EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively) |  |  |  |  |  | 735 |  |  | 782 |  |  | 741 |
Walnut Creek Properties Holdings, L.L.C. |  |  |  |  |  | 1,240 |  |  | 928 |  |  | 803 |
Towers Property Holdings, LLC |  |  |  |  |  | 1,192 |  |  | 1,243 |  |  | 638 |
Mansions Property Holdings, LLC |  |  |  |  |  | 1,148 |  |  | 1,198 |  |  | 615 |
Sabina Montgomery Holdings, LLC - Series B and Oakley Shoals Apartments, LLC - Series A (collectively) |  |  |  |  |  | 412 |  |  | 454 |  |  | 188 |
Gen1814, LLC - Series A, Highlands - Mtg. Holdings, LLC - Series A, and Polos at Hudson Investments, LLC - Series A (collectively) |  |  |  |  |  | 966 |  |  | 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) |  |  |  |  |  | 1,193 |  |  | 1,293 |  |  | 267 |
DCP Gold Creek, LLC |  |  |  |  |  | 780 |  |  | 701 |  |  | — |
1122 Chicago DE, LLC |  |  |  |  |  | 908 |  |  | 835 |  |  | — |
Rigsbee Ave Holdings, LLC |  |  |  |  |  | 1,683 |  |  | 1,148 |  |  | — |
Bighaus, LLC |  |  |  |  |  | 1,786 |  |  | 1,002 |  |  | — |
FF/RMI 20 Midtown, LLC |  |  |  |  |  | 3,059 |  |  | 686 |  |  | — |
Lurin-RMI, LLC |  |  |  |  |  | 931 |  |  | 81 |  |  | — |
Palms at Cape Coral, LLC |  |  |  |  |  | 342 |  |  | — |  |  | — |
America Walks at Port St. Lucie, LLC |  |  |  |  |  | 1,678 |  |  | — |  |  | — |
EHOF-NYMT Sunset Apartments Preferred, LLC |  |  |  |  |  | 661 |  |  | — |  |  | — |
Lucie at Tradition Holdings, LLC |  |  |  |  |  | 484 |  |  | — |  |  | — |
Total Income - Multi-Family Preferred Equity Ownership Interests |  |  |  |  |  | $ | 24,633 |  |  | $ | 16,587 |  |  | $ | 8,541 |
For the year ended December 31, 2021, the Company recognized $2.8 million in premiums resulting from early redemption of multi-family preferred equity ownership interests included in equity investments, which are included in other income on the accompanying consolidated statements of operations. For the years ended December 31, 2020 and 2019, the Company recognized no premiums resulting from early redemption of multi-family preferred equity ownership interests included in equity investments. Income from single-family equity ownership interests and joint venture equity investments in multi-family properties 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 (loss) from these investments for the years ended December 31, 2021, 2020 and 2019, respectively (dollar amounts in thousands):
|  |  |  | For the Years Ended December 31,
Investment Name |  |  |  |  |  | 2021 |  | 2020 |  | 2019
Single-Family Equity Ownership Interests |  |  |  |  |  |  |  |  |  |
Morrocroft Neighborhood Stabilization Fund II, LP |  |  |  |  |  | $ | 6,378 |  |  | $ | 1,519 |  |  | $ | 843 |
Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I) (1) |  |  |  |  |  | (15) |  |  | 9,513 |  |  | 3,776 |
Constructive Loans, LLC (2) |  |  |  |  |  | 2,750 |  |  | — |  |  | — |
Total Income - Single Family Equity Ownership Interests |  |  |  |  |  | $ | 9,113 |  |  | $ | 11,032 |  |  | $ | 4,619 |
Joint Venture Equity Investments in Multi-Family Properties (3) |  |  |  |  |  |  |  |  |  |
GWR Cedars Partners, LLC |  |  |  |  |  | $ | 60 |  |  | $ | — |  |  | $ | — |
GWR Gateway Partners, LLC |  |  |  |  |  | 90 |  |  | — |  |  | — |
The Preserve at Port Royal Venture, LLC (4) |  |  |  |  |  | — |  |  | (949) |  |  | 5,374 |
Evergreens JV Holdings, LLC (5) |  |  |  |  |  | — |  |  | — |  |  | 5,107 |
Total Income (Loss) - Joint Venture Equity Investments in Multi-Family Properties |  |  |  |  |  | $ | 150 |  |  | $ | (949) |  |  | $ | 10,481 |
(1)The Company's equity investment was redeemed during the year ended December 31, 2021. (2)Includes net unrealized gain of $2.8 million for the year ended December 31, 2021. (3)Includes net unrealized gain of $0.2 million and no realized gains for the year ended December 31, 2021, net unrealized losses of $9.7 million and a realized gain of $8.8 million for the year ended December 31, 2020 and net unrealized gains of $0.3 million and a realized gain of $10.2 million for the year ended December 31, 2019. (4)The Company's equity investment was redeemed during the year ended December 31, 2020. (5)The Company's equity investment was redeemed during the year ended December 31, 2019. Summary combined financial information for the Company’s equity investments as of December 31, 2021 and 2020, respectively, and for the years ended December 31, 2021, 2020, and 2019, respectively, is shown below (dollar amounts in thousands):
|  | December 31, 2021 |  | December 31, 2020
Balance Sheets: |  |  |  |
Real estate, net |  | $ | 727,963 |  |  | $ | 917,392 |
Residential loans |  | 38,423 |  |  | 268,693 |
Other assets |  | 95,016 |  |  | 190,429 |
Total assets |  | $ | 861,402 |  |  | $ | 1,376,514 |
Notes payable, net |  | $ | 469,120 |  |  | $ | 649,241 |
Collateralized debt obligations |  | — |  |  | 233,765 |
Other liabilities |  | 80,672 |  |  | 23,734 |
Total liabilities |  | 549,792 |  |  | 906,740 |
Members' equity |  | 311,610 |  |  | 469,774 |
Total liabilities and members' equity |  | $ | 861,402 |  |  | $ | 1,376,514 |
|  | For the Years Ended December 31,
|  | 2021 |  | 2020 |  | 2019
Operating Statements: (1) |  |  |  |  |  |
Rental revenues |  | $ | 87,147 |  |  | $ | 80,339 |  |  | $ | 63,265 |
Real estate sales |  | 205,000 |  |  | 54,100 |  |  | 42,350 |
Cost of real estate sales |  | (140,800) |  |  | (32,779) |  |  | (25,534) |
Interest income |  | 3,875 |  |  | 14,438 |  |  | 9,214 |
Realized and unrealized (losses) gains, net |  | (7,693) |  |  | 27,107 |  |  | 10,452 |
Other income |  | 15,046 |  |  | 7,566 |  |  | 4,697 |
Operating expenses |  | (55,799) |  |  | (54,691) |  |  | (42,383) |
Income before debt service, acquisition costs, and depreciation and amortization |  | 106,776 |  |  | 96,080 |  |  | 62,061 |
Interest expense |  | (28,849) |  |  | (36,601) |  |  | (28,340) |
Depreciation and amortization |  | (37,172) |  |  | (38,112) |  |  | (45,548) |
Net income (loss) |  | $ | 40,755 |  |  | $ | 21,367 |  |  | $ | (11,827) |
(1)The Company records income (loss) from equity investments under either the hypothetical liquidation of book value method of accounting or the equity method using the fair value option. Accordingly, the combined net income (loss) shown above is not indicative of the income (loss) recognized by the Company from equity investments.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration