Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Summary of Fair Value for Interest Rate Options and swaps

The following table summarizes investments measured at fair value on a recurring basis, which are presented in other assets, net, and accrued liabilities and other in our condensed consolidated balance sheets (in thousands):


	As of June 30, 2023								As of December 31, 2022
	Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3
Interest rate option (1)	$	—	$	—	$	—	$	—	$	53,481	$	—	$	53,481	$	—
Interest rate swaps - pay-fixed, receive floating	$	35,395	$	—	$	35,395	$	—	$	32,222	$	—	$	32,222	$	—
Interest rate swaps - pay-floating, receive fixed	$	(1,959)	$	—	$	(1,959)	$	—	$	—	$	—	$	—	$	—
Treasury rate lock	$	2,236	$	—	$	2,236	$	—	$	319	$	—	$	319	$	—

(1)During the three months ended June 30, 2023, the interest rate swap option asset and offsetting liability associated with the Parkmerced mezzanine investment was settled, resulting in equal decreases in other assets and accrued liabilities and other.

Summary of Carrying Value and Fair Value of Non-recourse Property Debt

We classify the fair value of our non-recourse property debt, unsecured notes payable, and seller financing notes receivable within Level 2 of the GAAP fair value hierarchy, as summarized in the following table (in thousands):


	As of June 30, 2023				As of December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Non-recourse property debt	$	2,211,002	$	1,966,566	$	1,994,651	$	1,753,222
Unsecured notes payable	$	400,000	$	373,648	$	400,000	$	371,368
Seller financing note receivable, net (1)	$	32,032	$	32,573	$	31,611	$	32,286

(1)During the year ended December 31, 2022, we provided $40.0 million of seller financing as partial consideration for the sale of our New England portfolio. The contractual interest rate on the note is 4.5%. The difference between the stated rate and the effective interest rate as of the date of sale resulted in a discount recorded of $8.5 million. The seller financing note and related discount are included in other assets, net in our condensed consolidated balance sheets.