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Related Party Arrangements (Tables)
9 Months Ended
Sep. 30, 2021
Related Party Transactions [Abstract]  
Schedule of the Fees and Reimbursements Incurred to the Advisor and Dealer Manager
The following tables present the fees and reimbursements incurred and paid to the Advisor (dollars in thousands):
Type of Fee or ReimbursementDue to Related Party as of December 31, 2020Nine Months Ended September 30, 2021
Due to Related Party as of September 30, 2021 (Unaudited)
Financial Statement LocationIncurredPaid
Fees to Advisor Entities
   Asset management(1)
Asset management fees-related party$923 $8,307 $(8,307)
(2)
$923 
Reimbursements to Advisor Entities
   Operating costs(2)
General and administrative expenses7,395 7,634 (13,055)1,974 
Total$8,318 $15,941 $(21,362)$2,897 
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(1)Includes $7.8 million paid in shares of the Company’s common stock.
(2)As of September 30, 2021, the Advisor did not have any unreimbursed operating costs which remained eligible to be allocated to the Company.
Schedule of Joint Ventures The following tables present the Company’s investments in unconsolidated ventures (dollars in thousands):
Carrying Value(1)
PortfolioAcquisition DateOwnershipSeptember 30, 2021 (Unaudited)December 31, 2020
EclipseMay-20145.6 %$6,465 $5,624 
Envoy(2)
Sep-201411.4 %— 
Diversified US/UK Dec-201414.3 %82,756 89,651 
Espresso(3)
Jul-201536.7 %328 — 
TrilogyDec-201523.2 %131,057 133,896 
Subtotal$220,606 $229,173 
Operator Platform(4)
Jul-201720.0 %330 — 
Total$220,936 $229,173 
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(1)Includes $1.3 million, $13.4 million, $7.6 million and $9.8 million of capitalized acquisition costs for the Company’s investments in the Eclipse, Diversified US/UK, Espresso and Trilogy joint ventures, respectively.
(2)In March 2019, the Envoy joint venture completed the sale of its remaining 11 properties for a sales price of $118.0 million, which generated net proceeds to the Company totaling $4.3 million.
(3)As a result of impairments and other non-cash reserves recorded by the joint venture, the Company’s carrying value of its Espresso unconsolidated investment was reduced to zero in the fourth quarter of 2018. The Company recorded the excess equity in losses related to its unconsolidated venture as a reduction to the carrying value of its mezzanine loan, which was originated to a subsidiary of the Espresso joint venture and was repaid in full during the three months ended September 30, 2021. During the nine months ended September 30, 2021, the Espresso joint venture recorded net income as a result of gains recognized on sub-portfolio sales, resulting in an increase in the Company’s carrying value of its unconsolidated investment.
(4)Represents investment in Solstice Senior Living, LLC (“Solstice”), the manager of the Winterfell portfolio. Solstice is a joint venture between affiliates of Integral Senior Living, LLC (“ISL”), a management company of ILF, ALF and MCF founded in 2000, which owns 80.0%, and the Company, which owns 20.0%. During the nine months ended September 30, 2021, the Company contributed an additional $0.4 million to Solstice.
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
PortfolioEquity in Earnings (Losses)Cash DistributionEquity in Earnings (Losses)Cash DistributionEquity in Earnings (Losses)Cash DistributionEquity in Earnings (Losses)Cash Distribution
Eclipse$(194)$2,898 $(191)$— $3,739 $2,898 $(3,683)$86 
Envoy— 78 — 198 740 817 — 390 
Diversified US/UK (330)966 185 — (2,387)3,256 (37,905)1,487 
Espresso7,693 — 60 — 18,636 — (522)— 
Trilogy763 — (1,091)— (2,839)— 5,365 — 
Subtotal$7,932 $3,942 $(1,037)$198 $17,889 $6,971 $(36,745)$1,963 
Operator Platform(1)
11 — (6)— (70)— (54)— 
Total$7,943 $3,942 $(1,043)$198 $17,819 $6,971 $(36,799)$1,963 
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(1)Represents the Company’s investment in Solstice.
The below table indicates the Company’s investments for which DigitalBridge is also an equity partner in the joint venture. Each investment was approved by the Company’s board of directors, including all of its independent directors. Refer to Note 4, “Investments in Unconsolidated Ventures” for further discussion of these investments:
PortfolioPartner(s)Acquisition DateOwnership
Eclipse
DigitalBridge/Formation Capital, LLC
May 20145.6%
Diversified US/UK
DigitalBridge
December 201414.3%