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Equity Investments, at Fair Value
 9 Months Ended
Sep. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Equity Investments, at Fair Value
6. 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 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 condensed consolidated balance sheets as a result of a fair value election.

The following table presents the Company's equity investments as of September 30, 2022 and December 31, 2021, respectively (dollar amounts in thousands):

September 30, 2022December 31, 2021
Investment NameOwnership InterestFair ValueOwnership InterestFair Value
Multi-Family Preferred Equity Ownership Interests
Somerset Deerfield Investor, LLC45%$20,529 45%$19,965 
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%6,210 43%5,725 
1122 Chicago DE, LLC53%8,109 53%7,723 
Bighaus, LLC42%16,166 42%15,471 
FF/RMI 20 Midtown, LLC51%26,338 51%25,499 
Palms at Cape Coral, LLC34%5,330 34%5,175 
America Walks at Port St. Lucie, LLC62%29,823 62%30,383 
EHOF-NYMT Sunset Apartments Preferred, LLC57%17,780 57%17,213 
Lucie at Tradition Holdings, LLC70%17,153 70%16,597 
Syracuse Apartments and Townhomes, LLC58%19,763 —— 
Hudson Bridge Apartments, LLC - Series A, Briar Hill Apartments, LLC, Kings Glen Apartments, LLC, Flagstone Apartments, LLC, Brookfield Apartments II, LLC - Series B, and Silber JBSM Properties, LLC (collectively)58%9,138 —— 
DCP Gold Creek, LLC—— 44%6,686 
Rigsbee Ave Holdings, LLC—— 56%11,331 
Walnut Creek Properties Holdings, L.L.C.—— 36%9,482 
Lurin-RMI, LLC—— 38%9,548 
Total - Multi-Family Preferred Equity Ownership Interests176,339 180,798 
Joint Venture Equity Investments in Multi-Family Properties
GWR Cedars Partners, LLC (1)
—— 70%3,770 
GWR Gateway Partners, LLC (1)
—— 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 (2)
11%1,975 11%19,143 
Constructive Loans, LLC (3)
—27,500 —29,250 
Total - Single-Family Equity Ownership Interests29,475 48,393 
Total$205,814 $239,631 

(1)The Company's joint venture equity investments in multi-family properties were transferred to assets of disposal group held for sale during the nine months ended September 30, 2022 (see Note 9).
(2)The Company's equity investment was partially redeemed, subject to holdbacks, as a result of a sale transaction initiated by the general partner during the nine months ended September 30, 2022.
(3)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. The Company purchased $5.5 million and $257.8 million of residential loans from the entity during the three and nine months ended September 30, 2022, respectively.    


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 and nine months ended September 30, 2022 and 2021, respectively (dollar amounts in thousands). Income from these investments is presented in income from equity investments in the Company's accompanying condensed consolidated statements of operations. Income from these investments during the three and nine months ended September 30, 2022 includes $4.2 million and $3.8 million of net unrealized losses, respectively. Income from these investments during the three and nine months ended September 30, 2021 includes $0.3 million of net unrealized losses and $0.6 million of net unrealized gains, respectively.
Three Months Ended September 30,Nine Months Ended September 30,
Investment Name2022202120222021
Somerset Deerfield Investor, LLC$548 $569 $1,731 $1,711 
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)
163 152 485 450 
1122 Chicago DE, LLC
212 229 690 675 
Bighaus, LLC388 450 1,325 1,328 
FF/RMI 20 Midtown, LLC287 771 1,897 2,275 
Lurin-RMI, LLC(1,242)216 558 687 
Palms at Cape Coral, LLC68 189 381 189 
America Walks at Port St. Lucie, LLC376 775 2,180 775 
EHOF-NYMT Sunset Apartments Preferred, LLC219 — 1,327 — 
Lucie at Tradition Holdings, LLC126 — 1,342 — 
Syracuse Apartments and Townhomes, LLC67 — 1,174 — 
Hudson Bridge Apartments, LLC - Series A, Briar Hill Apartments, LLC, Kings Glen Apartments, LLC, Flagstone Apartments, LLC, Brookfield Apartments II, LLC - Series B, and Silber JBSM Properties, LLC (collectively)243 — 243 — 
DCP Gold Creek, LLC
— 189 254 589 
Rigsbee Ave Holdings, LLC— 120 (174)1,335 
Walnut Creek Properties Holdings, L.L.C.— 257 (153)797 
BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively)— 331 — 1,035 
Audubon Mezzanine Holdings, L.L.C. (Series A)— 251 — 972 
EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively)— 151 — 571 
Towers Property Holdings, LLC— 348 — 1,087 
Mansions Property Holdings, LLC— 335 — 1,048 
Sabina Montgomery Holdings, LLC - Series B and Oakley Shoals Apartments, LLC - Series A (collectively)— 89 — 355 
Gen1814, LLC - Series A, Highlands - Mtg. Holdings, LLC - Series A, and Polos at Hudson Investments, LLC - Series A (collectively)— 204 — 819 
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)— 252 — 1,014 
Total Income - Multi-Family Preferred Equity Ownership Interests$1,455 $5,878 $13,260 $17,712 

For the three and nine months ended September 30, 2022, the Company recognized $1.3 million and $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 condensed consolidated statements of operations. For the three and nine months ended September 30, 2021, 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 condensed consolidated statements of operations. The following table presents income from these investments for the three and nine months ended September 30, 2022 and 2021, respectively (dollar amounts in thousands):    

Three Months Ended September 30,Nine Months Ended September 30,
Investment Name2022202120222021
Single-Family Equity Ownership Interests
Morrocroft Neighborhood Stabilization Fund II, LP (1)
$— $2,137 $50 $4,324 
Constructive Loans, LLC (2)
(3,500)— (1,750)— 
Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I) (3)
— — — (15)
Total Income - Single-Family Equity Ownership Interests$(3,500)$2,137 $(1,700)$4,309 
Joint Venture Equity Investments in Multi-Family Properties (4)
GWR Cedars Partners, LLC$(1,141)$— $(930)$— 
GWR Gateway Partners, LLC88 — 426 — 
Total Income - Joint Venture Equity Investments in Multi-Family Properties$(1,053)$— $(504)$— 

(1)The Company's equity investment was partially redeemed during the nine months ended September 30, 2022.
(2)Includes net unrealized loss of $3.5 million and $1.8 million for the three and nine months ended September 30, 2022, respectively.
(3)The Company's equity investment was redeemed during the year ended December 31, 2021.
(4)Includes net unrealized loss of $1.1 million and $0.5 million for the three and nine months ended September 30, 2022, respectively.