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Real Estate (Tables)
 12 Months Ended
Dec. 31, 2023
Acquisition And Disposition Of Properties And Discontinued Operations [Abstract]  
Schedule of Real Estate

The Company’s real estate is comprised of the following for the periods presented (in thousands):

 

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Land

 

$

872,228

 

 

$

817,802

 

Buildings and improvements

 

 

3,128,650

 

 

 

2,987,594

 

Tenant improvements

 

 

257,955

 

 

 

216,899

 

Construction in progress

 

 

23,250

 

 

 

21,027

 

Right-of-use assets - finance leases (Note 11)

 

 

58,637

 

 

 

25,086

 

Total

 

 

4,340,720

 

 

 

4,068,408

 

Less: Accumulated depreciation and amortization

 

 

(823,439

)

 

 

(725,143

)

Operating real estate, net

 

 

3,517,281

 

 

 

3,343,265

 

Real estate under development

 

 

94,799

 

 

 

184,602

 

Net investments in real estate

 

$

3,612,080

 

 

$

3,527,867

 
Schedule of Business Acquisitions, by Acquisition

During the years ended December 31, 2023 and 2022, the Company acquired (through purchase, investment, or foreclosure) the following retail properties and other real estate investments (dollars in thousands):

 

Property and Location

 

Percent
Acquired

 

Date of
Acquisition

 

Purchase
Price

 

Fund V 2023 Acquisitions

 

 

 

 

 

 

 

Cypress Creek - Tampa, FL

 

100%

 

July 3, 2023

 

$

49,374

 

Maple Tree Place - Williston, VT

 

100%

 

November 27, 2023

 

 

77,816

 

Total Fund V 2023 Acquisitions

 

 

 

 

 

$

127,190

 

 

 

 

 

 

 

 

 

2022 Acquisitions and Foreclosure

 

 

 

 

 

 

 

Core

 

 

 

 

 

 

 

121 Spring Street - New York, NY

 

100%

 

Jan 12, 2022

 

$

39,637

 

Williamsburg Collection - Brooklyn, NY (a)

 

(a)

 

Feb 18, 2022

 

 

97,750

 

8833 Beverly Boulevard - West Hollywood, CA

 

100%

 

Mar 2, 2022

 

 

24,117

 

Henderson Avenue Portfolio - Dallas, TX (b)

 

100%

 

Apr 18, 2022

 

 

85,192

 

Subtotal Core

 

 

 

 

 

 

246,696

 

 

 

 

 

 

 

 

 

Fund III

 

 

 

 

 

 

 

640 Broadway - New York, NY (Foreclosure) (c)

 

100%

 

Jan 26, 2022

 

 

59,207

 

Subtotal Fund III

 

 

 

 

 

 

59,207

 

Total 2022 Acquisitions and Foreclosure

 

 

 

 

 

$

305,903

 

 

a)
The Company invested $2.8 million in its 49.99% equity interest and, through a separate lending subsidiary, provided a $64.1 million first mortgage loan and a $30.9 million mezzanine loan to subsidiaries of the venture (such equity and loans have been eliminated in consolidation). Pursuant to the entity’s operating agreement, the venture partner has a one-time right to put its 50.01% interest in the entity (the "Williamsburg NCI", which is further described in Note 10) to the Company for fair value at a future date. Given the preferred rate of return embedded in its equity interests and the accruing debt senior to the equity, the Company did not attribute any initial redemption value to the Williamsburg NCI and recognized a bargain purchase gain of $1.2 million, which is included in Realized and unrealized holding (losses) gains on investments and other on the Consolidated Statements of Operations.
b)
The Henderson Avenue Portfolio comprises 14 operating retail assets, one residential building and two development and redevelopment sites. One of the development sites was sold in October 2022.
c)
The entity was previously accounted for as an equity method investment until an affiliate of Fund III acquired the venture partner's interest in a foreclosure action. Fund III now indirectly owns 100% of the entity and consolidates it.
Schedule of Purchase Price Allocations The following table summarizes the allocation of the purchase price of properties acquired during the years ended December 31, 2023 and 2022 (in thousands):

 

 

 

Land

 

 

Buildings and improvements

 

 

Intangible assets

 

 

Right-of-use asset

 

 

Lease liability

 

 

Intangible liabilities

 

Other assets, net

 

 

Net assets acquired

 

Property Name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cypress Creek

 

$

—

 

 

$

39,637

 

 

$

10,949

 

 

$

25,313

 

 

$

(22,075

)

 

$

(4,450

)

$

—

 

 

$

49,374

 

Maple Tree Place

 

 

17,597

 

 

 

49,404

 

 

 

18,209

 

 

 

—

 

 

 

—

 

 

 

(7,395

)

 

—

 

 

 

77,816

 

2023 Total

 

$

17,597

 

 

$

89,041

 

 

$

29,158

 

 

$

25,313

 

 

$

(22,075

)

 

$

(11,845

)

$

—

 

 

$

127,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

121 Spring Street

 

$

5,380

 

 

$

31,707

 

 

$

2,550

 

 

$

—

 

 

$

—

 

 

$

—

 

$

—

 

 

$

39,637

 

Williamsburg Collection

 

 

31,500

 

 

 

60,700

 

 

 

16,401

 

 

 

—

 

 

 

—

 

 

 

(9,688

)

 

—

 

 

 

98,913

 

8833 Beverly Boulevard

 

 

14,423

 

 

 

8,299

 

 

 

1,395

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

24,117

 

Henderson Avenue Portfolio

 

 

40,764

 

 

 

40,865

 

 

 

7,611

 

 

 

—

 

 

 

—

 

 

 

(4,048

)

 

—

 

 

 

85,192

 

640 Broadway (a)

 

 

27,831

 

 

 

27,291

 

 

 

1,059

 

 

 

—

 

 

 

(661

)

 

 

(390

)

 

4,077

 

 

 

59,207

 

2022 Total

 

$

119,898

 

 

$

168,862

 

 

$

29,016

 

 

$

—

 

 

$

(661

)

 

$

(14,126

)

$

4,077

 

 

$

307,066

 
a)
The Company assumed a $36.0 million mortgage with the consolidation of 640 Broadway during the year ended December 31, 2022 (Note 7).
Schedule of Significant Assumptions Used in Calculating Fair Value of the Asset Acquisitions The most significant assumptions used in calculating the "as-if vacant" value for acquisition activity during 2023 and 2022, respectively, are as follows:

 

 

 

2023

 

 

2022

 

 

 

Low

 

High

 

 

Low

 

High

 

Exit Capitalization Rate

 

 

7.00

%

 

8.50

%

 

 

4.25

%

 

7.25

%

Annual net rental rate per square foot on acquired buildings

 

$

4.00

 

$

47.00

 

 

$

20.00

 

$

825.00

 

Annual net rental rate per square foot on acquired ground lease

 

$

1.04

 

$

1.91

 

 

$

—

 

$

—

 
Schedule of Property Dispositions

During the years ended December 31, 2023 and 2022, the Company disposed of the following properties and other real estate investments (in thousands):

Property and Location

 

Owner

 

Sale Date

 

Sale Price

 

 

Gain (Loss)
on Sale

 

2023 Dispositions (a)

 

 

 

 

 

 

 

 

 

 

None

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 Dispositions

 

 

 

 

 

 

 

 

 

 

NE Grocer Portfolio (Selected Assets) - Pennsylvania

 

Fund IV

 

Jan 26, 2022     Mar 4, 2022

 

$

45,350

 

 

$

13,784

 

New Towne (Parcel) - Canton, MI

 

Fund V

 

Feb 1, 2022

 

 

2,231

 

 

 

1,776

 

Cortlandt Crossing - Westchester County, NY

 

Fund III

 

Feb 9, 2022

 

 

65,533

 

 

 

13,255

 

Lincoln Place - Fairview Heights, IL

 

Fund IV

 

May 25, 2022

 

 

40,670

 

 

 

12,216

 

Wake Forest Crossing - Wake Forest, NC

 

Fund IV

 

Aug 24, 2022

 

 

38,919

 

 

 

8,885

 

Henderson Avenue (Parcel) - Dallas, TX

 

Core

 

Oct 7, 2022

 

 

3,050

 

 

 

(194

)

330-340 River Street - Cambridge, MA

 

Core

 

Dec 13, 2022

 

 

26,400

 

 

 

7,439

 

Total 2022 Dispositions

 

 

 

 

 

$

222,153

 

 

$

57,161

 

 

a)
Does not include the 146 Geary Street property, which had a carrying value of $19.4 million, and was transferred to the Company’s lender through deed-in-lieu of foreclosure, extinguishing the obligations under the $20.1 million mortgage loan and accrued interest in default (Note 7).
Schedule of Asset Held For Sale Property Assets of property held for sale consisted of the following:

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

 

Buildings and improvements

 

$

12,562

 

 

$

12,562

 

Land

 

 

3,380

 

 

 

3,380

 

Tenant improvements

 

 

1,010

 

 

 

1,010

 

Less: Accumulated depreciation and amortization

 

 

(5,895

)

 

 

(5,895

)

 

 

$

11,057

 

 

$

11,057

 
Schedule of Development in Process Activities

Development activity for the Company’s properties comprised the following during the periods presented (dollars in thousands):

 

 

 

January 1, 2023

 

 

Year Ended December 31, 2023

 

 

December 31, 2023

 

 

 

Number of
Properties

 

 

Carrying
Value

 

 

Transfers In

 

 

Capitalized
Costs

 

 

Transfers Out

 

 

Number of
Properties

 

 

Carrying
Value

 

Core

 

 

2

 

 

$

54,817

 

 

$

—

 

 

$

11,266

 

 

$

—

 

 

 

2

 

 

 

66,083

 

Fund II

 

 

—

 

 

 

34,072

 

 

 

—

 

 

 

633

 

 

 

34,705

 

 

 

—

 

 

 

—

 

Fund III

 

 

1

 

 

 

25,798

 

 

 

—

 

 

 

2,958

 

 

 

40

 

 

 

1

 

 

 

28,716

 

Fund IV

 

 

1

 

 

 

69,915

 

 

 

—

 

 

 

—

 

 

 

69,915

 

 

 

—

 

 

 

—

 

Total

 

 

4

 

 

$

184,602

 

 

$

—

 

 

$

14,857

 

 

$

104,660

 

 

 

3

 

 

$

94,799

 

 

 

January 1, 2022

 

 

Year Ended December 31, 2022

 

 

December 31, 2022

 

 

 

Number of
Properties

 

 

Carrying
Value

 

 

Transfers In

 

 

Capitalized
Costs

 

 

Transfers Out

 

 

Number of
Properties

 

 

Carrying
Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core

 

 

—

 

 

$

42,517

 

 

$

9,610

 

 

$

2,690

 

 

$

—

 

 

 

2

 

 

$

54,817

 

Fund II (a)

 

 

—

 

 

 

35,125

 

 

 

—

 

 

 

503

 

 

 

1,556

 

 

 

—

 

 

 

34,072

 

Fund III

 

 

1

 

 

 

24,296

 

 

 

—

 

 

 

1,502

 

 

 

—

 

 

 

1

 

 

 

25,798

 

Fund IV (b)

 

 

1

 

 

 

101,835

 

 

 

—

 

 

 

215

 

 

 

32,135

 

 

 

1

 

 

 

69,915

 

Total

 

 

2

 

 

$

203,773

 

 

$

9,610

 

 

$

4,910

 

 

$

33,691

 

 

 

4

 

 

$

184,602

 

(a)
Transfers out include $1.6 million related to a portion of one Fund II property that was transferred out of development.
(b)
Transfers out include $13.4 million related to a portion of one Fund IV property that was transferred out of development and an impairment charge totaling $18.7 million on one Fund IV development property (Note 8).