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Equity Method Investments Carried At Fair Value
9 Months Ended
Sep. 30, 2019
Equity Method Investments And Joint Ventures [Abstract]  
Equity Method Investments Carried At Fair Value

3. EQUITY METHOD INVESTMENTS CARRIED AT FAIR VALUE

The Company has elected to account for the equity method investment in Investors X at fair value. Fair Value is determined using a discounted cash flow model based on expected future cash flows for income and realization events of the underlying asset. Expected future cash flows includes contractually fixed revenues and expenses as well as estimates for future revenues and expenses where contracts do not currently exist. Fair value of equity method investments are classified as Level 3 of the fair value hierarchy. Changes in fair value of equity method investments under the fair value option are recorded in the Statement of Operations.

The fair value of the Company’s investment in Investors X was $9.3 million as of the July 23, 2019 deconsolidation. As of September 30, 2019 the fair value of the Company’s investment in Investors X is $8.6 million. CHCI received a distribution of $100 thousand during the third quarter of 2019 and recognized a loss in fair value of $606 thousand due to lower estimated cash flows from a project in the Investors X portfolio.