Investment in Unconsolidated Ventures

9 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

At September 30, 2023 and December 31, 2022, the Company held interests in unconsolidated joint ventures that own seven and eight multi-family properties (the "Unconsolidated Properties"), respectively, and a property-in-development. The condensed balance sheets below present information regarding such properties (dollars in thousands):


	September 30, 2023		December 31, 2022
ASSETS
Real estate properties, net of accumulated depreciation of $67,399 and $66,945	$	278,096	$	318,304
Cash and cash equivalents	8,504		6,591
Other assets	50,789		35,372

Total Assets	$	337,389	$	360,267

LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs of $1,185 and $1,421	$	242,763	$	255,261
Accounts payable and accrued liabilities	11,547		8,222
Total Liabilities	254,310		263,483
Commitments and contingencies
Equity:
Total unconsolidated joint venture equity	83,079		96,784
Total Liabilities and Equity	$	337,389	$	360,267

BRT's interest in joint venture equity	$	34,501	$	42,576

At the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands):


	September 30, 2023		December 31, 2022
Land	$	46,331	$	59,404
Building	291,473		315,400
Building improvements	7,691		10,445
Real estate properties	345,495		385,249
Accumulated depreciation	(67,399)		(66,945)
Total real estate properties, net	$	278,096	$	318,304

At September 30, 2023 and December 31, 2022, the weighted average interest rate on the mortgages payable is 4.03% and 3.99%, respectively, and the weighted average remaining term to maturity is 5.3 years and 6.1 years, respectively.

The condensed income statements below present information regarding the Unconsolidated Properties (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues:
Rental and other revenue	$	10,636	$	13,502	$	34,244	$	60,840
Total revenues	10,636		13,502		34,244		60,840

Expenses:
Real estate operating expenses	5,023		6,512		15,835		27,523
Interest expense	2,212		2,843		7,057		13,762
Depreciation	2,568		3,113		7,833		14,957
Total expenses	9,803		12,468		30,725		56,242
Total revenues less total expenses	833		1,034		3,519		4,598
Other equity earnings	3		12		119		89


Gain on insurance recoveries	—		—		65		567
Gain on sale of real estate	—		16,937		38,418		118,270
Loss on extinguishment of debt	—		(573)		(561)		(3,491)
Net income from joint ventures	$	836	$	17,410	$	41,560	$	120,033

BRT's equity in earnings and equity in earnings from sale of unconsolidated joint venture properties	$	426	$	11,607	$	16,449	$	65,846

Joint Venture Sales

On May 12, 2023, the unconsolidated joint venture in which the Company had a 50% equity interest sold Chatham Court and Reflections, a 494 unit multi family property located in Dallas, TX, for a sales price of $73,000,000. The gain on the sale of this property was $38,418,000 and BRT's share of the gain was $14,744,000. In connection with the sale, mortgage debt of $25,405,000 with 5.0 years of remaining term to maturity and bearing an interest rate of 4.01% was repaid and the joint venture incurred $561,000 from the loss on the extinguishment of debt, of which the Company's share was $212,000.

During the nine months ended September 30, 2022, the unconsolidated joint ventures in which the Company had equity interests, sold the following properties:


Property	Date of Sale	Units	Interest Sold		Sales Price		Gain on Sale		BRT Share of Gain		Mtge Debt at Sale Date		Loss on extinguishment of debt		BRT Share of extinguishment of debt
The Verandas at Shavano, San Antonio, TX	2/8/2022	288	65	%	$	53,750	$	23,652	$	12,961	$	25,100	$	—	$	—
Retreat at Cinco Ranch, San Antonio, TX	6/14/2022	268	75	%	68,300		30,595		17,378		30,096		1,257		686
The Vive, Kannapolis, NC	6/30/2022	312	65	%	91,250		47,086		22,720		31,420		1,631		787
Waters Edge, Columbia, SC	8/31/2022	204	80	%	$	32,400	$	16,937	$	11,472	$	12,241	573		388
		1,072			$	245,700	$	118,270	$	64,531	$	98,857	$	3,461	$	1,861

Acquisition of Interest in Joint Venture

On March 10, 2022, the Company purchased a 17.45% interest in a planned 240-unit development property, Stono Oaks, located in Johns Island, SC. The purchase price for the interest was $3,500,000. During the nine months ended September 30, 2023, the Company funded a $122,000 capital call for this joint venture.