XML 23 R14.htm IDEA: XBRL DOCUMENT
v3.23.2

Equity Investments, at Fair Value | 6 Months Ended
--- | ---
Jun. 30, 2023
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 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 June 30, 2023 and December 31, 2022, respectively (dollar amounts in thousands):
|  | June 30, 2023 |  | December 31, 2022
Investment Name |  | Ownership Interest |  | Fair Value |  | Ownership Interest |  | Fair Value
Multi-Family Preferred Equity Ownership Interests |  |  |  |  |  |  |  |
FF/RMI 20 Midtown, LLC |  | 51% |  | $ | 28,108 |  |  | 51% |  | $ | 27,079 |
Palms at Cape Coral, LLC |  | 34% |  | 5,635 |  |  | 34% |  | 5,429 |
America Walks at Port St. Lucie, LLC |  | 62% |  | 25,500 |  |  | 62% |  | 29,873 |
EHOF-NYMT Sunset Apartments Preferred, LLC |  | 57% |  | 18,894 |  |  | 57% |  | 18,139 |
Lucie at Tradition Holdings, LLC |  | 70% |  | 18,473 |  |  | 70% |  | 17,576 |
Syracuse Apartments and Townhomes, LLC |  | 58% |  | 20,854 |  |  | 58% |  | 20,115 |
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% |  | 9,570 |  |  | 58% |  | 9,277 |
Tides on 27th Investors, LLC |  | 54% |  | 16,721 |  |  | — |  | — |
1122 Chicago DE, LLC |  | — |  | — |  |  | 53% |  | 8,276 |
Bighaus, LLC |  | — |  | — |  |  | 42% |  | 16,482 |
Total - Multi-Family Preferred Equity Ownership Interests |  |  |  | 143,755 |  |  |  |  | 152,246 |
Single-Family Equity Ownership Interests |  |  |  |  |  |  |  |
Constructive Loans, LLC (1) |  | 50% |  | 25,000 |  |  | — |  | 27,500 |
Total - Single-Family Equity Ownership Interests |  |  |  | 25,000 |  |  |  |  | 27,500 |
Total |  |  |  | $ | 168,755 |  |  |  |  | $ | 179,746 |
(1)The Company exercised its option to purchase 50% of the issued and outstanding interests of an entity that originates residential loans during the six months ended June 30, 2023. The Company purchased $24.0 million and $40.0 million of residential loans from the entity during the three and six months ended June 30, 2023, respectively, and $82.1 million and $252.3 million of residential loans from the entity during the three and six months ended June 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 six months ended June 30, 2023 and 2022, 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 six months ended June 30, 2023 includes $5.3 thousand and $0.6 million of net unrealized gains, respectively. Income from these investments during the three and six months ended June 30, 2022 includes $0.3 million and $0.4 million of net unrealized gains, respectively.
|  | Three Months Ended June 30, |  | Six Months Ended June 30, |
Investment Name |  | 2023 |  | 2022 |  | 2023 |  | 2022 |
1122 Chicago DE, LLC |  | $ | 168 |  |  | $ | 241 |  |  | $ | 419 |  |  | $ | 478 |  |
Bighaus, LLC |  | 164 |  |  | 472 |  |  | 701 |  |  | 937 |  |
FF/RMI 20 Midtown, LLC |  | 935 |  |  | 812 |  |  | 1,734 |  |  | 1,610 |  |
Palms at Cape Coral, LLC |  | 180 |  |  | 158 |  |  | 357 |  |  | 313 |  |
America Walks at Port St. Lucie, LLC |  | 773 |  |  | 902 |  |  | 1,899 |  |  | 1,804 |  |
EHOF-NYMT Sunset Apartments Preferred, LLC |  | 638 |  |  | 559 |  |  | 1,263 |  |  | 1,108 |  |
Lucie at Tradition Holdings, LLC |  | 701 |  |  | 614 |  |  | 1,385 |  |  | 1,215 |  |
Syracuse Apartments and Townhomes, LLC |  | 666 |  |  | 591 |  |  | 1,321 |  |  | 1,107 |  |
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) |  | 306 |  |  | — |  |  | 607 |  |  | — |  |
Tides on 27th Investors, LLC |  | 501 |  |  | — |  |  | 1,298 |  |  | — |  |
DCP Gold Creek, LLC |  | — |  |  | (599) |  |  | — |  |  | 254 |  |
Rigsbee Ave Holdings, LLC |  | — |  |  | — |  |  | — |  |  | (174) |  |
Walnut Creek Properties Holdings, L.L.C. |  | — |  |  | — |  |  | — |  |  | (153) |  |
Lurin-RMI, LLC |  | — |  |  | 1,520 |  |  | — |  |  | 1,800 |  |
Somerset Deerfield Investor, LLC |  | — |  |  | 596 |  |  | — |  |  | 1,183 |  |
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 |  |  | — |  |  | 322 |  |
Total Income - Multi-Family Preferred Equity Ownership Interests |  | $ | 5,032 |  |  | $ | 6,029 |  |  | $ | 10,984 |  |  | $ | 11,804 |  |
For the three and six months ended June 30, 2023, the Company recognized no premiums resulting from early redemption of multi-family preferred equity ownership interests included in equity investments. For the three and six months ended June 30, 2022, the Company recognized $0.7 million and $1.5 million in premiums, respectively, 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 statement of operations. 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 (loss) from these investments for the three and six months ended June 30, 2023 and 2022, respectively (dollar amounts in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
Investment Name |  | 2023 |  | 2022 |  | 2023 |  | 2022
Single-Family Equity Ownership Interests |  |  |  |  |  |  |  |
Constructive Loans, LLC (1) |  | $ | — |  |  | $ | 1,750 |  |  | $ | (2,500) |  |  | $ | 1,750 |
Morrocroft Neighborhood Stabilization Fund II, LP (2) |  | — |  |  | 22 |  |  | — |  |  | 50 |
Total Income (Loss) - Single-Family Equity Ownership Interests |  | $ | — |  |  | $ | 1,772 |  |  | $ | (2,500) |  |  | $ | 1,800 |
Joint Venture Equity Investments in Multi-Family Properties (3) |  |  |  |  |  |  |  |
GWR Cedars Partners, LLC |  | $ | (613) |  |  | $ | 111 |  |  | $ | (200) |  |  | $ | 211 |
GWR Gateway Partners, LLC |  | (1,763) |  |  | 188 |  |  | (1,116) |  |  | 338 |
Total (Loss) Income - Joint Venture Equity Investments in Multi-Family Properties |  | $ | (2,376) |  |  | $ | 299 |  |  | $ | (1,316) |  |  | $ | 549 |
(1)Includes net unrealized losses of $1.0 million and $4.3 million for the three and six months ended June 30, 2023, respectively. Includes a net unrealized gain of $1.8 million for the three and six months ended June 30, 2022. (2)The Company's equity investment was redeemed during the year ended December 31, 2022. (3)The Company's joint venture equity investments in multi-family properties were transferred to assets of disposal group held for sale during the year ended December 31, 2022 (see Note 9). Includes net unrealized losses of $2.4 million and $1.3 million for the three and six months ended June 30, 2023, respectively, and net unrealized gains of $0.3 million and $0.5 million for the three and six months ended June 30, 2022, respectively.

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 -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration