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Mortgages Payable | 12 Months Ended
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Dec. 31, 2025
Mortgages Payable |
Mortgages Payable | Note 11 – Mortgages Payable The following table summarizes certain information at December 31, 2025 and 2024 with respect to the Company’s senior mortgage indebtedness (amounts in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ ​ ​ | Outstanding Principal | ​ ​ ​ | As of December 31, 2025 |
​ | ​ | December 31, | ​ | December 31, | ​ | ​ | ​ | Interest-only | ​ | ​ | ​
Property | ​ | 2025 | ​ ​ ​ | 2024 | ​ | Interest Rate | ​ ​ ​ | through date | ​ ​ ​ | Maturity Date |
Fixed Rate: |  | ​ | ​ |  | ​ | ​ |  | ​ |  | ​ |  | ​ | ​
Allure at Southpark | ​ | $ | 55,166 | ​ | $ | 55,166 | ​ | 5.58 | % | Interest-only | ​ | January 1, 2030 | ​
Amira at Westly | ​ | ​ | 56,650 | ​ | ​ | 56,650 | ​ | 4.81 | % | Interest-only | ​ | November 1, 2034 | ​
Avenue at Timberlin Park | ​ | ​ | 23,660 | ​ | ​ | 23,660 | ​ | 5.47 | % | August 2027 | ​ | August 1, 2029 | ​
District at Parkview | ​ | ​ | 38,625 | ​ | ​ | — | ​ | 5.18 | % | Interest-only | ​ | January 1, 2036 | ​
ILE (1) | ​ | ​ | 23,096 | ​ | ​ | 27,748 |  | 4.14 | % | (2) | ​ | (1) | ​
Skytop Apartments | ​ | ​ | 57,525 | ​ | ​ | — | ​ | 4.98 | % | Interest-only | ​ | October 1, 2035 | ​
Southern Pines Reserve | ​ | ​ | 30,739 | ​ | ​ | — | ​ | 5.13 | % | Interest-only | ​ | May 1, 2035 | ​
Villas at Huffmeister | ​ | ​ | 26,846 | ​ | ​ | 27,357 | ​ | 3.56 | % | (2) | ​ | October 1, 2029 | ​
Yauger Park Villas (3) | ​ |  | 13,720 | ​ |  | 14,044 |  | 4.86 | % | (2) | ​ | April 1, 2026 | ​
Total Fixed Rate | ​ | $ | 326,027 | ​ | $ | 204,625 |  | ​ |  | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Floating Rate: | ​ |  | ​ | ​ |  | ​ |  | ​ |  | ​ | ​ | ​ | ​
DB Loan (4) | ​ | $ | 60,000 | ​ | $ | — | ​ | 5.45 | % | Interest-only | ​ | October 4, 2027 | ​
Harmony at Clear Creek (5) | ​ | ​ | 1 | ​ | ​ | — | ​ | 6.91 | % | Interest-only | ​ | September 30, 2028 | ​
ILE (6) | ​ | ​ | 21,782 | ​ | ​ | 23,000 |  | 6.69 | % | Interest-only | ​ | October 1, 2027 | ​
Wayford at Concord (7) | ​ |  | 32,973 | ​ |  | 32,973 |  | 4.73 | % | May 2027 | ​ | May 1, 2029 | ​
Total Floating Rate | ​ | $ | 114,756 | ​ | $ | 55,973 |  | ​ |  | ​ | ​ | ​ | ​
Total | ​ | $ | 440,783 | ​ | $ | 260,598 |  | ​ |  | ​ | ​ | ​ | ​
Fair value adjustments | ​ |  | (2,075) | ​ |  | (2,400) |  | ​ |  | ​ | ​ | ​ | ​
Deferred financing costs, net | ​ |  | (10,316) | ​ |  | (5,416) |  | ​ |  | ​ | ​ | ​ | ​
Total mortgages payable | ​ | $ | 428,392 | ​ | $ | 252,782 |  | ​ |  | ​ | ​ | ​ | ​
(1) | ILE’s fixed rate debt represents the aggregate debt outstanding across three separate credit agreements. Of the outstanding balance, one credit agreement (“CA1”) has a balance of $3.4 million at a fixed rate of 3.50%, the second credit agreement (“CA2”) has a balance of $15.3 million at a fixed rate of 3.75%, and the third credit agreement (“CA3”) has a balance of $4.4 million at a fixed rate of 6.00%. CA1 and CA3 each bear interest at a floating rate that is subject to an interest rate swap to effectuate a fixed rate; refer to Note 13 for further information. CA1 and CA2 both mature in 2026; CA3 matures in 2028. The ILE credit agreements contain certain financial and operating covenants, including minimum liquidity and minimum debt service coverage.
(2) | The loan requires monthly payments of principal and interest.
(3) | The principal balance includes a $9.5 million senior loan at a fixed rate of 4.81% and a $4.2 million supplemental loan at a fixed rate of 4.96%.
(4) | The Deutsche Bank loan (“DB Loan”) bears interest at one-month Term SOFR plus 2.95%. In December 2025, the one-month Term SOFR in effect for this loan was 3.87%. The Term SOFR rate is subject to a 2.50% rate cap through April 2026; refer to Note 13 for further information. The DB Loan contains certain financial and operating covenants, including maximum leverage, minimum debt yield and minimum debt service coverage.
(5) | Represents a construction loan with a maximum commitment of $46.5 million. At December 31, 2025, a negligible amount was drawn on the loan.
(6) | The ILE loan bears interest at one-month Term SOFR plus 2.85%, subject to a 6.50% rate floor, and contains a minimum debt service coverage covenant. In December 2025, the one-month Term SOFR in effect for this loan was 3.84%.
(7) | The Wayford at Concord loan bears interest at the 30-day average SOFR plus 2.23%. In December 2025, the 30-day average SOFR in effect for this loan was 4.00%. SOFR rate is subject to a 2.50% rate cap through April 2027; refer to Note 13 for further information.
Deferred financing costs Costs incurred in obtaining long-term financing are amortized on a straight-line basis to interest expense over the terms of the related financing agreements, as applicable, which approximates the effective interest method. Amortization of deferred financing costs, including amounts related to the revolving credit facilities (refer to Note 10 for further information), for the years ended December 31, 2025 and 2024 was $2.3 million and $1.6 million, respectively. Fair value adjustments of debt The Company records a fair value adjustment based upon the fair value of the loans on the date they were assumed in conjunction with acquisitions. The fair value adjustments are being amortized to interest expense over the remaining life of the loans. Amortization of fair value adjustments for the years ended December 31, 2025 and 2024 was $0.3 million and $0.1 million, respectively. Loss on Extinguishment of Debt and Debt Modification Costs Upon repayment of or in conjunction with a material change (i.e. a 10% or greater difference in the cash flows between instruments) in the terms of an underlying debt agreement, the Company writes-off any unamortized deferred financing costs and fair market value adjustments related to the original debt that was extinguished. Prepayment penalties incurred on the early repayment of debt and costs incurred in a debt modification that are not capitalized are also included within loss on extinguishment of debt and debt modification costs on the consolidated statements of operations and comprehensive income (loss). The Company had a negligible amount of loss on extinguishment of debt and no debt modification costs during the year ended December 31, 2025. The Company had $0.2 million of loss on extinguishment of debt costs and no debt modification costs during the year ended December 31, 2024. Debt maturities The following table summarizes the Company’s contractual principal payments of its borrowings at December 31, 2025 for the five subsequent years and thereafter (amounts in thousands): ​
​ | ​ | ​ | ​
Year | ​ ​ ​ | Total
2026 | ​ | $ | 33,036
2027 | ​ |  | 82,889
2028 | ​ |  | 5,703
2029 | ​ |  | 80,450
2030 | ​ | ​ | 55,166
Thereafter | ​ |  | 183,539
​ | ​ | $ | 440,783
Add: Unamortized fair value debt adjustment | ​ |  | (2,075)
Subtract: Deferred financing costs, net | ​ | ​ | (10,316)
Total | ​ | $ | 428,392
​ The net book value of real estate assets providing collateral for these above borrowings was $780.4 million at December 31, 2025. The mortgage loans encumbering the Company’s properties are nonrecourse, subject to certain exceptions for which the Company would be liable for any resulting losses incurred by the lender. These exceptions generally include fraud or a material misrepresentation, misstatement or omission by the borrower, intentional or grossly negligent conduct by the borrower that harms the property or results in a loss to the lender, filing of a bankruptcy petition by the borrower, either directly or indirectly, and certain environmental liabilities. In addition, upon the occurrence of certain events, such as fraud or filing of a bankruptcy petition by the borrower, the Company or its joint ventures would be liable for the entire outstanding balance of the loan, all interest accrued thereon and certain other costs, including penalties and expenses. The mortgage loans have a period where a prepayment fee or yield maintenance would be required.

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