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Investment in Unconsolidated Joint Ventures | 12 Months Ended
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Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract] |
Investment in Unconsolidated Joint Ventures | Investment in Unconsolidated Joint Ventures On November 16, 2018, our SPC subsidiary formed the Victory Abode Apartments, LLC ("VAA"), a joint venture with the Macquarie Group (“Macquarie”). VAA was formed as a result of a sale of the 50% ownership interest in a portfolio multifamily properties owned by us in exchange for a 50% voting interest in VAA a nd a note payable (“Mezzanine Loan”). In connection with the formation of VAA, ten of the initial properties were subject to an earn-out provision ("Earn Out") that provided for a remeasurement of value after a two-year period following the completion of construction. Upon the formation of VAA, we recorded an initial liability ("Earn Out Obligation") of $10,000 for the advance on the Earn Out that we received from Macquarie. Upon remeasurement, the Earn Out Obligation was determined to be approximately $39,600, and as a result, we recorded a charge of $29,600 in 2021 (See Note 7 – Real Estate Activity). In accordance with the joint venture operating agreement, the Earn Out Obligation was paid from our share of subsequent distributions from VAA. On March 30, 2021, we sold a 50% ownership interest in Overlook at Allensville Phase II, a 144 unit multifamily property in Sevierville, Tennessee to Macquarie for $2,551 resulting in a gain on sale of $1,417. Concurrent with the sale, we each contributed our 50% ownership interests in the property into VAA. On June 17, 2022, we entered into an agreement to sell 45 properties (“VAA Sale Portfolio”) owned by VAA and one property owned by our SPC subsidiary. On September 16, 2022, VAA completed the sale of the VAA Sale Portfolio for $1,810,700, resulting in a gain on sale of $738,444 to the joint venture. In connection with sale, we received an initial distribution of $182,848 from VAA, which included the payment of the remaining balance of the Earn Out Obligation. On November 1, 2022, we received an additional distribution from VAA, which included the full operational control of the seven remaining properties ("VAA Holdback Portfolio") (See Note 11 - Acquisitions) and a cash payment of $204,036. On March 23, 2023, we received $17,976 from VAA, which represented the remaining distribution of the proceeds from the sale of the VAA Sale Portfolio. We used our share of the proceeds from the sale of the VAA Sale Portfolio to invest in short-term investments, investment in real estate, pay down our debt and for general corporate purposes. We also have a 20% ownership interest in Gruppa Florentina, LLC ("Milano"), which operates several pizza parlors in Central and Northern California. Milano also has 23 franchised locations, including two operating, under the trade name Angelo & Vito’s Pizzerias. The following is a summary of our investment in unconsolidated joint ventures:
|  | As of December 31,
|  | 2023 |  | 2022
Assets (1) |  |  |  |
Real estate |  | $ | 13,897 |  |  | $ | 13,140 |
Cash, cash equivalents and restricted cash |  | 20,047 |  |  | 66,364 |
Other assets |  | 57,005 |  |  | 35,938 |
Total assets |  | $ | 90,949 |  |  | $ | 115,442 |
Liabilities and Partners Capital (1) |  |  |  |
Liabilities from discontinued operations |  | $ | — |  |  | $ | 8,824 |
Mortgage notes payable |  | 13,841 |  |  | 16,267 |
Other liabilities |  | 27,947 |  |  | 13,412 |
Our share of partners' capital |  | 10,207 |  |  | 27,973 |
Outside partner's capital |  | 38,954 |  |  | 48,966 |
Total liabilities and partners' capital |  | $ | 90,949 |  |  | $ | 115,442 |
Investment in unconsolidated joint ventures |  |  |  |
Our share of partners' capital |  | $ | 10,207 |  |  | $ | 27,973 |
Basis adjustment (2) |  | (147) |  |  | 253 |
Total investment in unconsolidated joint ventures |  | $ | 10,060 |  |  | $ | 28,226 |
(1) These amounts include the assets of $1,032 and $52,404 of VAA at December 31, 2023 and 2022, respectively, and liabilities of $135 and $10,812 of VAA at December 31, 2023 and 2022, respectively. (2) We amortize the difference between the cost of our investments in unconsolidated joint ventures and the book value of our underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The following is a summary of our income (loss) from investments in unconsolidated joint ventures:
|  | For the Years Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Revenue (1) |  |  |  |  |  |
Rental revenue |  | $ | — |  |  | $ | 11,362 |  |  | $ | 14,632 |
Other revenue |  | 60,057 |  |  | 41,093 |  |  | 60,514 |
Total revenue |  | 60,057 |  |  | 52,455 |  |  | 75,146 |
Expenses (1) |  |  |  |  |  |
Operating expenses |  | 54,517 |  |  | 55,831 |  |  | 66,503 |
Depreciation and amortization |  | 1,361 |  |  | 3,499 |  |  | 4,857 |
Interest |  | 459 |  |  | 15,839 |  |  | 23,744 |
Total expenses |  | 56,337 |  |  | 75,169 |  |  | 95,104 |
Income (loss) from continuing operations |  | 3,720 |  |  | (22,714) |  |  | (19,958) |
Income from discontinued operations (2) |  | 1,837 |  |  | 708,341 |  |  | 7,416 |
Net income (loss) |  | $ | 5,557 |  |  | $ | 685,627 |  |  | $ | (12,542) |
Our share of net income in unconsolidated joint ventures |  | $ | 3,242 |  |  | $ | 469,268 |  |  | $ | 14,634 |
(1) These amounts include reve nue of $0, $11,963 and $15,336 of VAA during the years ended December 31, 2023, 2022 and 2021, respectively, and expenses of $(283), $36,076 and $39,438 of VAA during the years ended December 31, 2023, 2022 and 2021, respectively. (2) The amount for the year ended December 31, 2022, includes $738,444 gain on sale of asset and $31,281 loss on early extinguishment of debt that were incurred in connection with the sale of the VAA Sale Portfolio.

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- 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
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