XML 28 R14.htm IDEA: XBRL DOCUMENT v3.25.3
Equity Investments, at Fair Value
 9 Months Ended
Sep. 30, 2025
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), an equity ownership interest in an entity that originates residential loans (or single-family equity ownership interest) 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, 2025 and December 31, 2024, respectively (dollar amounts in thousands):

September 30, 2025December 31, 2024
Investment NameOwnership InterestFair ValueOwnership InterestFair Value
Multi-Family Preferred Equity Ownership Interests
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%$9,879 58%$9,322 
Tides on 27th Investors, LLC54%7,653 54%10,245 
Rapid City RMI JV LLC
50%11,293 50%10,637 
Lucie at Tradition Holdings, LLC—— 70%21,821 
EHOF-NYMT Sunset Apartments Preferred, LLC—— 57%21,411 
Total - Multi-Family Preferred Equity Ownership Interests28,825 73,436 
Joint Venture Equity Investments in Multi-Family Properties
GWR Cedars Partners, LLC (1)
—— 70%141 
GWR Gateway Partners, LLC (1)
—— 70%1,197 
Total - Joint Venture Equity Investments in Multi-Family Properties
— 1,338 
Single-Family Equity Ownership Interests
Constructive Loans, LLC (2)
—— 50%38,718 
Total - Single-Family Equity Ownership Interests— 38,718 
Total$28,825 $113,492 

(1)The Company's joint venture equity investments in multi-family properties were transferred to assets of disposal group held for sale and subsequently sold during the nine months ended September 30, 2025 (see Note 9).
(2)On July 15, 2025, the Company acquired the outstanding membership interests in Constructive that were not previously owned by the Company (see Note 24). Prior to July 15, 2025, the Company purchased approximately $70.9 million and $299.6 million of residential loans from this entity during the three and nine months ended September 30, 2025, respectively, and approximately $30.2 million and $137.6 million of residential loans from this entity during the three and nine months ended September 30, 2024, respectively. The Company sold approximately $18.7 million of residential loans to this entity prior to July 15, 2025, recognizing a realized gain of approximately $0.2 million during the nine months ended September 30, 2025.

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, 2025 and 2024, respectively (dollar amounts in thousands). Income from these investments is presented in (loss) 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, 2025 includes $2.9 million and $2.0 million of net unrealized losses, respectively. Income from these investments during the three and nine months ended September 30, 2024 includes $4.5 million and $5.2 million of net unrealized losses, respectively.

For the Three Months Ended September 30,For the Nine Months Ended September 30,
Investment Name2025202420252024
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)$249 $438 $1,030 $693 
Tides on 27th Investors, LLC(2,765)(4,111)(2,422)(3,436)
Rapid City RMI JV LLC
412 388 1,225 1,199 
Lucie at Tradition Holdings, LLC462 798 2,176 2,332 
EHOF-NYMT Sunset Apartments Preferred, LLC— 627 950 1,999 
Syracuse Apartments and Townhomes, LLC— 724 — 2,354 
Palms at Cape Coral, LLC— — — 69 
Total (Loss) Income - Multi-Family Preferred Equity Ownership Interests
$(1,642)$(1,136)$2,959 $5,210 

Income (loss) 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 (loss) 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 nine months ended September 30, 2025 and 2024, respectively (dollar amounts in thousands):    

For the Three Months Ended September 30,For the Nine Months Ended September 30,
Investment Name2025202420252024
Single-Family Equity Ownership Interests (1)
Constructive Loans, LLC
$47 $7,611 $(1,554)$9,301 
Total Income (Loss) - Single-Family Equity Ownership Interests
$47 $7,611 $(1,554)$9,301 
Joint Venture Equity Investments in Multi-Family Properties (2)
GWR Cedars Partners, LLC$— $(112)$39 $(1,741)
GWR Gateway Partners, LLC— (309)(877)(2,744)
Total Loss - Joint Venture Equity Investments in Multi-Family Properties
$— $(421)$(838)$(4,485)

(1)Includes net unrealized losses of $4.4 million recognized prior to the Company's acquisition of the outstanding membership interests in Constructive on July 15, 2025 (see Note 24) and included in the accompanying condensed consolidated statements of operations for the nine months ended September 30, 2025. Includes net unrealized gains of $3.9 million and $2.0 million for the three and nine months ended September 30, 2024, respectively.
(2)Includes net realized losses of $0.8 million for the nine months ended September 30, 2025, and includes net unrealized losses of $0.4 million and $4.5 million for the three and nine months ended September 30, 2024, respectively.