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Investments in Unconsolidated Entities | 6 Months Ended
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Jun. 30, 2025
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Entities | 7. 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 Properties guarantees a preferred return on the Partnership’s invested capital through a date approximately five years after commencement of construction in connection with each Vantage Property. The following table provides the details of the investments in unconsolidated entities as of June 30, 2025 and December 31, 2024:
Property Name |  | Location |  | Units |  |  | Construction Commencement Date |  | Construction Completion Date |  | Carrying Value as of June 30, 2025 |  |  | Carrying Value as of December 31, 2024 |
Market Rate Development Investments |  |  |  |  |  |  |  |  |  |  |  |  |
Vantage at Hutto |  | Hutto, TX |  |  | 288 |  |  | December 2021 |  | December 2023 |  | $ | 14,988,329 |  |  | $ | 14,573,715 |
Vantage at Loveland |  | Loveland, CO |  |  | 288 |  |  | April 2021 |  | October 2024 |  |  | 21,098,736 |  |  |  | 26,560,347 |
Vantage at Fair Oaks |  | Boerne, TX |  |  | 288 |  |  | September 2021 |  | May 2023 |  |  | 14,346,224 |  |  |  | 13,535,176 |
Vantage at McKinney Falls |  | McKinney Falls, TX |  |  | 288 |  |  | December 2021 |  | July 2024 |  |  | 16,076,440 |  |  |  | 15,633,593 |
Freestone Greeley |  | Greeley, CO |  |  | 296 |  |  | N/A |  | N/A |  |  | 6,230,785 |  |  |  | 6,230,785 |
Freestone Cresta Bella |  | San Antonio, TX |  |  | 296 |  |  | February 2023 |  | November 2024 |  |  | 17,891,332 |  |  |  | 16,759,593 |
Valage Senior Living Carson Valley |  | Minden, NV |  |  | 102 |  | (1) | February 2023 |  | April 2025 |  |  | 7,569,162 |  |  |  | 8,471,445 |
The Jessam at Hays Farm |  | Huntsville, AL |  |  | 318 |  |  | July 2023 |  | N/A |  |  | 17,981,599 |  |  |  | 17,696,609 |
Freestone Greenville |  | Greenville, TX |  |  | 300 |  |  | April 2024 |  | N/A |  |  | 19,370,521 |  |  |  | 20,853,691 |
Freestone Ladera |  | Ladera, TX |  |  | 288 |  |  | August 2024 |  | N/A |  |  | 18,101,105 |  |  |  | 9,804,364 |
Subtotal |  |  |  |  |  |  |  |  |  |  |  | 153,654,233 |  |  |  | 150,119,318 |
Other Investments |  |  |  |  |  |  |  |  |  |  |  |  |
Construction Lending JV (2) |  | N/A |  | N/A |  |  | N/A |  | N/A |  |  | 240,865 |  |  |  | - |
Previously Sold Investments |  |  |  |  |  |  |  |  |  |  |  |  |
Vantage at Tomball |  | Tomball, TX |  |  | 288 |  |  | August 2020 |  | April 2022 |  | $ | - |  |  | $ | 14,199,870 |
Vantage at Helotes |  | Helotes, TX |  |  | 288 |  |  | May 2021 |  | November 2022 |  |  | - |  |  |  | 15,090,681 |
Subtotal |  |  |  |  |  |  |  |  |  |  |  | - |  |  |  | 29,290,551 |
|  |  |  |  |  |  |  |  |  |  | $ | 153,895,098 |  |  | $ | 179,409,869 |
(1) Valage Senior Living Carson Valley is a seniors housing property with 102 beds in 88 units. (2) The Construction Lending JV invests in loans to finance the construction and/or rehabilitation of affordable multifamily housing properties across the United States, similar to the Partnership’s current GIL, taxable GIL and property loan investments In October 2024, the Partnership entered into the Construction Lending JV to invest in loans to finance the construction and/or rehabilitation of affordable multifamily housing properties across the United States, similar to the Partnership’s current GIL, taxable GIL and property loan investments. The Partnership has committed to provide 10% of the total capital for the Construction Lending JV with the remainder funded by a third-party investor with each party contributing their respective proportionate capital contributions upon funding of future investments. The Partnership’s initial maximum capital contribution to the Construction Lending JV is approximately $8.3 million. A wholly owned subsidiary of the Partnership is the Construction Lending JV’s managing member responsible for identifying, evaluating, underwriting, and closing investments, subject to the conditions of the joint venture and third-party investor evaluation and approval. The Partnership earns proportionate returns on its invested capital plus promote income if the joint venture meets certain earnings thresholds. The Partnership accounts for its investment in the Construction Lending JV using the equity method. The Partnership made its first capital contribution to the Construction Lending JV in April 2025. The Partnership has remaining commitments to provide additional equity funding for certain unconsolidated entities as of June 30, 2025. See Note 16 for further details regarding the Partnership’s remaining funding commitments. Activity in the First Six Months of 2025 The following table summarizes sales information of the Partnership’s investments in unconsolidated entities during the six months ended June 30, 2025:
Property Name |  | Location |  | Units |  |  | Month Sold |  | Gross Proceeds to the Partnership |  |  | Investment Income |  |  | Gain on Sale |
Vantage at Tomball |  | Tomball, TX |  |  | 288 |  |  | January 2025 |  | $ | 14,199,870 |  |  | $ | - |  |  | $ | - |
Vantage at Coventry |  | Omaha, NE |  |  | 294 |  |  | (1) |  |  | 5,220 |  |  |  | - |  |  |  | 5,220 |
Vantage at Helotes (2) |  | Helotes, TX |  |  | 288 |  |  | May 2025 |  |  | 17,083,556 |  |  |  | 1,829,525 |  |  |  | 163,350 |
Vantage at O'Connor |  | San Antonio, TX |  |  | 288 |  |  | (3) |  |  | 32,166 |  |  |  | - |  |  |  | 32,166 |
|  |  |  |  |  |  |  |  | $ | 31,320,812 |  |  | $ | 1,829,525 |  |  | $ | 200,736 |
(1) In February 2025, the Partnership received sales proceeds of approximately $5,000 associated with final settlements of the Vantage at Coventry sale in January 2023. The Partnership recognized the amount in “Gain on sale of investment in an unconsolidated entity” on the Partnership’s condensed consolidated statement of operations. (2) Vantage at Helotes, at the direction of its managing member, sold substantially all its assets to a non-profit entity that financed the purchase by issuing tax-exempt and taxable bonds. The Partnership acquired two MRBs issued by the buyer to finance the purchase of the property (see Note 4). (3) In June 2025, the Partnership received sales proceeds of approximately $32,000 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. During the first six months of 2025, the Partnership advanced funds beyond its original commitments to four Vantage Properties and Freestone at Cresta Bella totaling approximately $3.1 million to cover additional interest costs. Activity in the First Six Months of 2024 The following table summarizes sales information of the Partnership’s investments in unconsolidated entities during the six months ended June 30, 2024:
Property Name |  | Location |  | Units |  |  | Month Sold |  | Gross Proceeds to the Partnership |  |  | Investment Income |  |  | Gain (Loss) on Sale |
Vantage at Coventry |  | Omaha, NE |  |  | 294 |  |  | (1) |  | $ | 50,000 |  |  | $ | - |  |  | $ | 50,000 |
Vantage at Westover Hills |  | San Antonio, TX |  |  | 288 |  |  | (2) |  |  | 6,986 |  |  |  | - |  |  |  | 6,986 |
|  |  |  |  |  |  |  |  | $ | 56,986 |  |  | $ | - |  |  | $ | 56,986 |
(1) In January 2024, the Partnership received sales proceeds of approximately $50,000 associated with final settlements of the Vantage at Coventry sale in January 2023. The Partnership recognized the amount in “Gain on sale of investment in an unconsolidated entity” on the Partnership’s condensed consolidated statement of operations. (2) In May 2024, the Partnership received sales proceeds of approximately $7,000 associated with final settlements of the Vantage at Westover Hills sale in May 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. During the first six months of 2024, the Partnership advanced funds beyond its original commitments to five Vantage Properties totaling approximately $5.8 million to cover additional construction and interest costs. Summarized Unconsolidated Entity Level Financial Data The following table provides summary combined financial information for the properties underlying the Partnership’s investments in unconsolidated entities for the three and six months ended June 30, 2025 and 2024:
|  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Property revenues |  | $ | 4,830,476 |  |  | $ | 4,411,360 |  |  | $ | 10,175,479 |  |  | $ | 8,196,677 |
Interest income |  | $ | 126,988 |  |  | $ | - |  |  | $ | 126,988 |  |  | $ | - |
Gain on sale |  | $ | 9,591,652 |  |  | $ | - |  |  | $ | 17,272,325 |  |  | $ | - |
Net income (loss) |  | $ | 5,825,925 |  |  | $ | (3,025,880 | ) |  | $ | 10,987,787 |  |  | $ | (4,150,053 | )

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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/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: 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 3: 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 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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