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Assets and Liabilities of Disposal Group Held for Sale | 3 Months Ended
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Mar. 31, 2024
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 and 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 December 2023, the Company suspended the marketing of nine joint venture equity investments that were reported in assets and liabilities of disposal group held for sale primarily due to unfavorable market conditions and a lack of transactional activity in the multi-family market. As such, the Company determined that these joint venture equity investments no longer met the criteria to be classified as held for sale and transferred either the assets and liabilities of the respective Consolidated VIEs or its equity investment in the joint venture entity to their respective categories or equity investments, at fair value, respectively, on the accompanying condensed consolidated balance sheets as of December 31, 2023. In March 2024, the Company suspended the marketing of one additional joint venture equity investment, determined that it no longer met the criteria to be classified as held for sale and transferred the assets and liabilities of the Consolidated VIE to their respective categories on the accompanying condensed consolidated balance sheets as of March 31, 2024. As a result of this transfer, the Company adjusted the carrying value of the long-lived assets in the Consolidated VIE to the lower of the carrying amount before the assets were classified as held for sale adjusted for depreciation and amortization expense that would have been recognized had the assets been continuously classified as held and used and the fair value of the assets at the date of the transfer and recognized an approximately $14.6 million loss on reclassification of disposal group during the three months ended March 31, 2024. During the three months ended March 31, 2024, the Company sold its joint venture equity investment in a multi-family property, which resulted in the de-consolidation of the joint venture equity's assets and liabilities and a gain on de-consolidation of approximately $0.1 million, which is included in other (loss) income in the accompanying condensed consolidated statements of operations. The following table presents the carrying values of the major classes of assets and liabilities of disposal group held for sale as of March 31, 2024 and December 31, 2023, respectively (dollar amounts in thousands):
|  | March 31, 2024 |  | December 31, 2023
Cash and cash equivalents (1) |  | $ | 2,615 |  |  | $ | 5,676 |
Real estate, net (1) |  | 138,984 |  |  | 407,834 |
Other assets (1) |  | 4,764 |  |  | 12,507 |
Total assets of disposal group held for sale |  | $ | 146,363 |  |  | $ | 426,017 |
Mortgages payable on real estate, net |  | $ | 119,640 |  |  | $ | 378,386 |
Other liabilities |  | 2,678 |  |  | 7,638 |
Total liabilities of disposal group held for sale (1) |  | $ | 122,318 |  |  | $ | 386,024 |
(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 $1.7 million and $3.2 million as of March 31, 2024 and December 31, 2023, respectively. 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 equity return rates. As of March 31, 2024, the fair value, net of selling costs of a multi-family property owned by one of the joint venture entities in which we hold an equity investment that had previously been impaired was more than the property's net carrying value. Accordingly, the Company recognized a $0.6 million recovery of value in the three months ended March 31, 2024. As of March 31, 2023, the fair values, net of selling costs of multi-family properties owned by two of the joint venture entities in which we hold equity investments were less than the properties' net carrying values. Accordingly, the Company recognized an $11.1 million impairment in the three months ended March 31, 2023. As of March 31, 2023, the fair value, net of selling costs of a multi-family property owned by one of the joint venture entities in which we hold an equity investment that had previously been impaired was more than the property's net carrying value. Accordingly, the Company recognized a $0.8 million recovery of value in the three months ended March 31, 2023. Impairment on real estate, net of recovery of previously impaired real estate, is included in impairment of real estate on the accompanying condensed consolidated statements of operations. See Note 16 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 as of March 31, 2024 for the three months ended March 31, 2024 and 2023, respectively (dollar amounts in thousands):
|  | For the Three Months Ended March 31, |  |
|  | 2024 |  | 2023 |  |  |  |
Pretax income (loss) of disposal group held for sale |  | $ | 651 |  |  | $ | (11,978) |  |  |  |  |
Pretax income (loss) of disposal group attributable to non-controlling interest in Consolidated VIEs |  | (30) |  |  | 670 |  |  |  |  |
Pretax income (loss) of disposal group attributable to Company's common stockholders |  | $ | 621 |  |  | $ | (11,308) |  |  |  |  |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
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