XML 29 R18.htm IDEA: XBRL DOCUMENT v3.24.1
Investment in Unconsolidated Joint Ventures
 12 Months Ended
Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Unconsolidated Joint Ventures Investment in Unconsolidated Joint Ventures
On November 16, 2018, our SPC subsidiary formed the Victory Abode Apartments, LLC ("VAA"), a joint venture with the Macquarie Group (“Macquarie”). VAA was formed as a result of a sale of the 50% ownership interest in a portfolio multifamily properties owned by us in exchange for a 50% voting interest in VAA and a note payable (“Mezzanine Loan”).
In connection with the formation of VAA, ten of the initial properties were subject to an earn-out provision ("Earn Out") that provided for a remeasurement of value after a two-year period following the completion of construction. Upon the formation of VAA, we recorded an initial liability ("Earn Out Obligation") of $10,000 for the advance on the Earn Out that we received from Macquarie. Upon remeasurement, the Earn Out Obligation was determined to be approximately $39,600, and as a result, we recorded a charge of $29,600 in 2021 (See Note 7 – Real Estate Activity). In accordance with the joint venture operating agreement, the Earn Out Obligation was paid from our share of subsequent distributions from VAA.
On March 30, 2021, we sold a 50% ownership interest in Overlook at Allensville Phase II, a 144 unit multifamily property in Sevierville, Tennessee to Macquarie for $2,551, resulting in a gain on sale of $1,417. Concurrent with the sale, we each contributed our 50% ownership interests in the property into VAA.
On June 17, 2022, we entered into an agreement to sell 45 properties (“VAA Sale Portfolio”) owned by VAA and one property owned by our SPC subsidiary.
On September 16, 2022, VAA completed the sale of the VAA Sale Portfolio for $1,810,700, resulting in a gain on sale of $738,444 to the joint venture. In connection with sale, we received an initial distribution of $182,848 from VAA, which included the payment of the remaining balance of the Earn Out Obligation.
On November 1, 2022, we received an additional distribution from VAA, which included the full operational control of the seven remaining properties ("VAA Holdback Portfolio") (See Note 11 - Acquisitions) and a cash payment of $204,036.
On March 23, 2023, we received $17,976 from VAA, which represented the remaining distribution of the proceeds from the sale of the VAA Sale Portfolio.
We used our share of the proceeds from the sale of the VAA Sale Portfolio to invest in short-term investments, investment in real estate, pay down our debt and for general corporate purposes.
The following is a summary of our investment in unconsolidated joint venture:
December 31,
20232022
Assets
Cash, cash equivalents and restricted cash$1,032 $50,058 
Other assets— 2,346 
   Total assets$1,032 $52,404 
Liabilities and Partners Capital
Liabilities from discontinued operations$— $8,824 
Other liabilities135 1,988 
Our share of partners' capital555 20,904 
Outside partner's capital342 20,688 
   Total liabilities and partners' capital$1,032 $52,404 
The following is a summary of our income (loss) from investments in unconsolidated joint venture:
For the Years Ended December 31,
202320222021
Revenue
   Rental revenue$— $11,362 $14,632 
   Other revenue— 601 704 
      Total revenue— 11,963 15,336 
Expenses
   Operating expenses49 18,139 12,836 
   Depreciation and amortization— 2,525 3,364 
   Interest(332)15,412 23,238 
      Total expenses(283)36,076 39,438 
Income (loss) from continuing operations283 (24,113)(24,102)
Income from discontinued operations (1)1,837 708,341 7,416 
Net income (loss)$2,120 $684,228 $(16,686)
Our share of net income in unconsolidated joint venture$1,060 $468,086 $14,531 
(1)     The amount for the year ended December 31, 2022, includes $738,444 gain on sale of asset and $31,281 loss on early extinguishment of debt that were incurred in connection with the sale of the VAA Sale Portfolio.