XML 29 R19.htm IDEA: XBRL DOCUMENT
v3.23.3

Investments in Unconsolidated Entities | 9 Months Ended
--- | ---
Sep. 30, 2023
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Entities | 9. Investments in Unconsolidated Entities The Partnership has non-controlling investments in unconsolidated entities. The Partnership applies the equity method of accounting by initially recording these investments at cost, subsequently adjusted for accrued preferred returns, the Partnership’s share of earnings (losses) of the unconsolidated entities, cash contributions, and distributions. The carrying value of the equity investments represents the Partnership’s maximum exposure to loss. The Partnership is entitled to a preferred return on invested capital in each unconsolidated entity. The Partnership’s preferred return is reported as “Investment income” on the Partnership’s condensed consolidated statements of operations. An affiliate of the Vantage unconsolidated entities guarantees a preferred return on the Partnership’s Vantage investments through a date approximately five years after commencement of construction. The following table provides the details of the investments in unconsolidated entities as of September 30, 2023 and December 31, 2022:
Property Name |  | Location |  | Units |  |  | Construction Commencement Date |  | Construction Completion Date |  | Carrying Value as of September 30, 2023 |  |  | Carrying Value as of December 31, 2022 |
Current Investments |  |  |  |  |  |  |  |  |  |  |  |  |
Vantage at Tomball |  | Tomball, TX |  |  | 288 |  |  | August 2020 |  | April 2022 |  | $ | 13,235,090 |  |  |  | 13,051,936 |
Vantage at Hutto |  | Hutto, TX |  |  | 288 |  |  | December 2021 |  | N/A |  |  | 13,566,659 |  |  |  | 12,590,292 |
Vantage at Loveland |  | Loveland, CO |  |  | 288 |  |  | April 2021 |  | N/A |  |  | 20,061,005 |  |  |  | 18,109,568 |
Vantage at Helotes |  | Helotes, TX |  |  | 288 |  |  | May 2021 |  | November 2022 |  |  | 14,893,573 |  |  |  | 14,029,032 |
Vantage at Fair Oaks |  | Boerne, TX |  |  | 288 |  |  | September 2021 |  | May 2023 |  |  | 12,739,817 |  |  |  | 12,000,297 |
Vantage at McKinney Falls |  | McKinney Falls, TX |  |  | 288 |  |  | December 2021 |  | N/A |  |  | 13,008,888 |  |  |  | 12,253,749 |
Freestone Greeley |  | Greeley, CO |  |  | 296 |  |  | N/A |  | N/A |  |  | 5,058,677 |  |  |  | 4,775,708 |
Freestone Cresta Bella |  | San Antonio, TX |  |  | 296 |  |  | February 2023 |  | N/A |  |  | 14,403,256 |  |  |  | 6,263,083 |
Valage Senior Living Carson Valley |  | Minden, NV |  |  | 102 |  | (1) | February 2023 |  | N/A |  |  | 7,822,934 |  |  |  | - |
The Jessam at Hays Farm |  | Huntsville, AL |  |  | 318 |  |  | July 2023 |  | N/A |  |  | 3,734,770 |  |  |  | - |
Subtotal |  |  |  |  |  |  |  |  |  |  |  | 118,524,669 |  |  |  | 93,073,665 |
Previously Sold Investments |  |  |  |  |  |  |  |  |  |  |  |  |
Vantage at Stone Creek |  | Omaha, NE |  |  | 294 |  |  | March 2018 |  | April 2020 |  | $ | - |  |  | $ | 5,465,967 |
Vantage at Coventry |  | Omaha, NE |  |  | 294 |  |  | September 2018 |  | February 2021 |  |  | - |  |  |  | 6,826,584 |
Vantage at Conroe |  | Conroe, TX |  |  | 288 |  |  | April 2019 |  | January 2021 |  |  | - |  |  |  | 10,424,625 |
Subtotal |  |  |  |  |  |  |  |  |  |  |  | - |  |  |  | 22,717,176 |
|  |  |  |  |  |  |  |  |  |  | $ | 118,524,669 |  |  | $ | 115,790,841 |
(1) Valage Senior Living Carson Valley is a seniors housing property with 102 beds in 88 units. The Partnership has remaining commitments to provide additional equity funding for certain unconsolidated entities as of September 30, 2023. See Note 19 for further information regarding the Partnership’s remaining equity funding commitments. Activity in the First Nine Months of 2023 Sales Activity: The following table summarizes sales information of the Partnership’s investments in unconsolidated entities during the nine months ended September 30, 2023:
Property Name |  | Location |  | Units |  |  | Month Sold |  | Gross Proceeds to the Partnership |  |  | Investment Income |  |  | Gain (loss) on Sale |
Vantage at Stone Creek |  | Omaha, NE |  |  | 294 |  |  | January 2023 |  | $ | 14,689,244 |  |  | $ | 108,295 |  |  | $ | 9,114,980 |
Vantage at Coventry |  | Omaha, NE |  |  | 294 |  |  | January 2023 |  |  | 13,220,218 |  |  |  | 135,501 |  |  |  | 6,258,133 |
Vantage at Murfreesboro |  | Murfreesboro, TN |  |  | 288 |  |  | (1) |  |  | (6,184 | ) |  |  | - |  |  |  | (6,184 | )
Vantage at O'Connor |  | San Antonio, TX |  |  | 288 |  |  | (2) |  |  | (11,744 | ) |  |  | - |  |  |  | (11,744 | )
Vantage at Conroe |  | Conroe, TX |  |  | 288 |  |  | June 2023 |  |  | 19,828,060 |  |  |  | 2,065,608 |  |  |  | 7,337,828 |
Vantage at Powdersville |  | Powdersville, SC |  |  | 288 |  |  | (3) |  |  | 32,385 |  |  |  | - |  |  |  | 32,385 |
|  |  |  |  |  |  |  |  | $ | 47,751,979 |  |  | $ | 2,309,404 |  |  | $ | 22,725,398 |
(1) In February 2023, the Partnership returned sales proceeds of approximately $6,200 associated with final settlements of the Vantage at Murfreesboro sale in March 2022. The Partnership recognized the amount in “Gain on sale of investment in an unconsolidated entity” on the Partnership’s condensed consolidated statements of operations. (2) In May 2023, the Partnership returned sales proceeds of approximately $12,000 associated with final settlements of the Vantage at O’Connor sale in July 2022. The Partnership recognized the amount in "Gain on sale of investment in an unconsolidated entity" on the Partnership’s condensed consolidated statement of operations. (3) In August 2023, the Partnership received sales proceeds of approximately $32,000 associated with final settlements of the Vantage at Powdersville sale in May 2021. The Partnership recognized the amount in “Gain on sale of investment in an unconsolidated entity” on the Partnership’s condensed consolidated statement of operations. New Equity Commitments: In February 2023, the Partnership executed an $8.2 million equity commitment to fund the construction of Valage Senior Living Carson Valley. In July 2023, the Partnership executed a $16.5 million equity commitment to fund the construction of The Jessam at Hays Farm. Activity in the First Nine Months of 2022 Sales Activity: The following table summarizes sales information of the Partnership’s investments in unconsolidated entities during the nine months ended September 30, 2022:
Property Name |  | Location |  | Units |  |  | Month Sold |  | Gross Proceeds to the Partnership |  |  | Investment Income |  |  | Gain on Sale |
Vantage at Murfreesboro |  | Murfreesboro, TN |  |  | 288 |  |  | March 2022 |  | $ | 29,258,279 |  |  | $ | 657,937 |  |  | $ | 16,360,343 |
Vantage at Westover Hills |  | San Antonio, TX |  |  | 288 |  |  | May 2022 |  |  | 20,923,784 |  |  |  | - |  |  |  | 12,658,501 |
Vantage at Bulverde |  | Bulverde, TX |  |  | 288 |  |  | (1) |  |  | 60,000 |  |  |  | - |  |  |  | 60,000 |
Vantage at Germantown |  | Germantown, TN |  |  | 288 |  |  | (2) |  |  | 4,407 |  |  |  | - |  |  |  | 4,407 |
Vantage at O’Connor |  | San Antonio, TX |  |  | 288 |  |  | July 2022 |  |  | 19,381,976 |  |  |  | 1,195 |  |  |  | 10,580,781 |
|  |  |  |  |  |  |  |  | $ | 69,628,446 |  |  | $ | 659,132 |  |  | $ | 39,664,032 |
(1) During the first nine months of 2022, the Partnership received net cash of approximately $60,000 associated with final settlements of the Vantage at Bulverde sale in August 2021. The Partnership recognized the full amount as “Gain on sale of investment in an unconsolidated entity” on the Partnership’s condensed consolidated statements of operations. (2) In March 2022, the Partnership received cash of approximately $4,000 associated with final settlements of the Vantage at Germantown sale in March 2021. The Partnership recognized the full amount as “Gain on sale of investment in an unconsolidated entity” on the Partnership’s condensed consolidated statements of operations. Summarized Unconsolidated Entity Level Financial Data The following table provides combined summary financial information for the properties underlying the Partnership’s investments in unconsolidated entities for the three and nine months ended September 30, 2023 and 2022:
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Property Revenues |  | $ | 2,904,950 |  |  | $ | 4,732,250 |  |  | $ | 9,926,910 |  |  | $ | 16,847,354 |
Gain on sale of property |  | $ | - |  |  | $ | 23,231,887 |  |  | $ | 56,099,503 |  |  | $ | 87,835,109 |
Net income (loss) |  | $ | (1,560,982 | ) |  | $ | 23,309,924 |  |  | $ | 53,132,243 |  |  | $ | 88,447,049 |

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