VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

The Company has variable interests in, and is the primary beneficiary of, variable interest entities (“VIEs”) through its investments in (i) the Sunset & Gardner Joint Venture and (ii) the 3032 Wilshire Joint Venture. The Company has consolidated the accounts of these variable interest entities.

Through June 30, 2021, post the initial capital contributions, the Company made additional capital contributions totaling $7.9 million and $8.6 million to the Sunset & Gardner Joint Venture and Wilshire Joint Venture, respectively.

During the year ended December 31, 2020, construction of the Wilshire Property was completed and placed in service.

The following table reflects the aggregate assets and liabilities of the Sunset & Gardner Joint Venture and the Wilshire Joint Venture, which were consolidated by the Company, as of June 30, 2021 and December 31, 2020 (amounts in thousands):

	June 30,		December 31,
	2021		2020
ASSETS
Investments in real estate
Land	$	13,026	$	13,026
Building and improvements	10,635		10,624
Tenant improvements	467		547
	24,128		24,197
Accumulated depreciation	(389)		(209)
Investments in real estate, net	23,739		23,988
Properties under development and development costs:
Land	12,958		12,958
Development costs	3,442		2,441
Properties under development and development costs	16,400		15,399
Cash, cash equivalents and restricted cash	441		340
Prepaid expenses and other assets, net	1		11
Other receivables, net	28		—
Lease intangibles, net	31		73
TOTAL ASSETS (1)	$	40,640	$	39,811
LIABILITIES
Notes payable, net (2)	$	21,029	$	20,868
Accounts payable and accrued expenses	243		212
Amounts due to affiliates	1		—
Other liabilities	48		33
TOTAL LIABILITIES	$	21,321	$	21,113

(1)The assets of the Sunset & Gardner Joint Venture and Wilshire Joint Venture can be used only to settle obligations of the respective consolidated joint ventures.

(2)As of both June 30, 2021 and December 31, 2020, includes approximately $0.2 million and $0.3 million, respectively, of deferred financing costs, net, as a contra-liability. The creditors of the consolidated joint ventures do not have recourse to the general credit of the Company. The notes payable of the Wilshire Joint Venture is partially guaranteed by the Company, refer to Note 7, “Notes Payable, Net”. The notes payable of the Sunset & Gardner Joint Venture is not guaranteed by the Company.