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Assets and Liabilities of Disposal Group Held for Sale
 6 Months Ended
Jun. 30, 2025
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

The Company is repositioning 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, as of June 30, 2025, the Company determined that certain joint venture equity investments met the criteria to be classified as held for sale and its unconsolidated joint venture equity investments and the assets and liabilities of the respective Consolidated VIEs are included in assets and liabilities of disposal group held for sale on the accompanying condensed consolidated balance sheets as of June 30, 2025. As of December 31, 2024, the Company determined that certain joint venture equity investments met the criteria to be classified as held for sale and the assets and liabilities of the respective Consolidated VIEs are included in assets and liabilities of disposal group held for sale on the accompanying condensed consolidated balance sheets as of December 31, 2024.

In March 2024, the Company suspended the marketing of one 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 consolidated balance sheets. As a result of this transfer, the Company adjusted the carrying value of the long-lived assets in the Consolidated VIE and recognized an approximately $14.6 million loss on reclassification of disposal group during the three months ended March 31, 2024.

In June 2024, in response to productive negotiations with operating partners and increased transactional activity, the Company determined that five joint venture equity investments met the criteria to be classified as held for sale and transferred the assets and liabilities of the respective Consolidated VIEs to assets and liabilities of disposal group held for sale on the accompanying condensed consolidated balance sheets as of June 30, 2024. As a result, the Company recognized a loss of $1.8 million included in impairment of real estate in the accompanying condensed consolidated statements of operations for the three months ended June 30, 2024.

During the three and six months ended June 30, 2024, the Company sold its ownership interests in one and two joint venture equity investments that owned multi-family properties, respectively, which resulted in the de-consolidation of the respective joint venture entities' assets and liabilities and a gain on de-consolidation of approximately $0.3 million, which is included in other income (loss) in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2024.

In June 2025, in response to productive negotiations with operating partners, the Company determined that two joint venture equity investments accounted for as equity investments met the criteria to be classified as held for sale and transferred its equity investments in the joint venture entities to disposal group held for sale on the accompanying condensed consolidated balance sheets as of June 30, 2025. As these investments are carried at fair value, the Company recognized no gain or loss on the transfer.
As of June 30, 2025, four joint venture equity investments are classified as disposal group held for sale. The following table presents the carrying values of the major classes of assets and liabilities of disposal group held for sale as of June 30, 2025 and December 31, 2024, respectively (dollar amounts in thousands):

June 30, 2025December 31, 2024
Cash and cash equivalents (1)
$1,395 $2,461 
Equity investments500 — 
Real estate, net (1)
106,485 111,032 
Other assets (1)
3,120 5,120 
Total assets of disposal group held for sale
$111,500 $118,613 
Mortgages payable on real estate, net (2)
$89,422 $93,370 
Other liabilities2,729 3,695 
Total liabilities of disposal group held for sale (1)
$92,151 $97,065 

(1)Certain assets and liabilities of the disposal group held for sale are in Consolidated VIEs because the Company is the primary beneficiary.
(2)As of June 30, 2024, multi-family properties owned by two joint venture equity investments were in default on a mortgage payable in the amount of $121.2 million. The events of default included a breach of the loan document in failure to secure a replacement interest rate cap agreement and failure to pay $1.1 million of interest owed to the lender. During the year ended December 31, 2024, the Company sold its joint venture equity investments in these entities, which resulted in the de-consolidation of the related mortgages payable as of December 31, 2024.

Also included in the disposal group held for sale are non-controlling interests in Consolidated VIEs in the amount of $2.0 million as of June 30, 2025 and December 31, 2024.

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 as of June 30, 2025 is based upon negotiated sale prices less anticipated selling costs. During the three and six months ended June 30, 2025, the Company recognized net impairment losses of $3.6 million and $7.2 million for real estate, net in the disposal group held for sale, respectively. During the three and six months ended June 30, 2024, the Company recognized net impairment losses of $1.8 million and $21.9 million for real estate, net in the disposal group held for sale, respectively. See Note 17 for descriptions of valuation methodologies utilized for financial instruments included in 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 June 30, 2025 for the three and six months ended June 30, 2025 and 2024, respectively (dollar amounts in thousands):

For the Three Months Ended June 30,For the Six Months Ended June 30,
2025202420252024
Pretax loss of disposal group held for sale
$(3,878)$(12,587)$(7,041)$(60,532)
Pretax loss of disposal group attributable to non-controlling interest in Consolidated VIEs
266 1,301 559 6,138 
Pretax loss of disposal group attributable to Company's common stockholders
$(3,612)$(11,286)$(6,482)$(54,394)