Assets and Liabilities of Disposal Group Held for Sale

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities of Disposal Group Held for Sale

9. Assets and Liabilities of Disposal Group Held for Sale

In September 2022, the Company announced a repositioning of its business through the opportunistic disposition over time of the Company's joint venture equity investments in multi-family properties and reallocation of its capital away from such assets to its targeted assets. Accordingly, the Company determined that certain joint venture equity investments met the criteria to be classified as held for sale, transferred either the assets and liabilities of the respective Consolidated VIEs or its equity investment in the joint venture entity to assets and liabilities of disposal group held for sale in the accompanying consolidated balance sheets and recognized no loss.

The following table presents the carrying values of the major classes of assets and liabilities of disposal group held for sale as of December 31, 2022 (dollar amounts in thousands):


Cash and cash equivalents (1)	$	13,944
Equity investments	9,010
Real estate, net (1)	1,079,942
Other assets (1)	48,888
Total assets of disposal group held for sale	$	1,151,784

Mortgages payable on real estate	$	865,414
Other liabilities	18,398
Total liabilities of disposal group held for sale (1)	$	883,812

(1)Certain assets and liabilities of the disposal group held for sale are in Consolidated VIEs because the Company is the primary beneficiary.

Also included in the disposal group held for sale are non-controlling interests in Consolidated VIEs in the amount of $23.9 million as of December 31, 2022.

Real estate, net included in assets of disposal group held for sale is recorded at the lower of the net carrying amount of the assets or the estimated fair value, net of selling costs. Fair value for real estate, net was based upon a discounted cash flow analysis using property financial information and assumptions regarding market rent, revenue and expense growth, capitalization rates and return rates. As of December 31, 2022, the fair value, net of selling costs of the multi-family property owned by one of the joint venture equity investments was less than the property's net carrying value. Accordingly, the Company recognized a $2.4 million impairment in the year ended December 31, 2022. See Note 15 for descriptions of valuation methodologies utilized for other classes of assets and liabilities of disposal group held for sale.

The following table presents the pretax losses of the disposal group held for sale for the years ended December 31, 2022 and 2021, respectively (dollar amounts in thousands):


	For the Years Ended December 31,
		2022		2021
Pretax loss of disposal group held for sale		$	(55,243)	$	(12,216)
Pretax loss of disposal group attributable to non-controlling interest in Consolidated VIEs		5,784		958
Pretax loss of disposal group attributable to Company's common stockholders		$	(49,459)	$	(11,258)