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Investments in Unconsolidated Real Estate Partnerships
 12 Months Ended
Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Real Estate Partnerships Investment in Unconsolidated Real Estate Partnerships
Joint Venture Transactions
AIR formed two joint ventures in 2023. The first, the Value-Add JV, was formed by contributing the Huntington Gateway property, a 443-unit property located in Virginia in exchange for $9 million in cash and the assumption by the joint venture of $94.1 million in debt, which represents non-cash financing activity during the period. AIR is the general partner and retains legal ownership of 30%, and receives 50% of the net cash flows from operations, and various fees for providing property management, construction, and corporate services to the joint venture. We recognized a gain of $1.0 million in connection with this transaction during the year ended December 31, 2023.
We formed the Core JV by contributing 10 properties located in Philadelphia, PA, Washington, D.C. area, Denver, CO, Oceanside, CA, and Kendall, FL. The Core JV, in which we retain a 53% interest, closed with respect to (i) eight of the properties in July 2023, (ii) one property in August 2023, and (iii) one property in September 2023. The 10 properties, with a total fair value of $1.1 billion and a carrying value of $373.3 million, were contributed to the Core JV subject to $644.4 million of non-recourse property debt, which represents a non-cash financing activity during the period. In advance of the joint venture closing, AIR placed $611.4 million in new non-recourse property debt, which was subsequently contributed to the joint venture. As a result of the transaction, AIR received $201.9 million in cash and recognized a gain of $700.5 million, including the measurement of the fair value of our interest in the Core JV during the year ended December 31, 2023. AIR will earn various fees for providing property management, construction, and corporate services to the joint venture.
Additionally, in the third quarter of 2023, AIR and our joint venture partner increased the investment in the Core JV to fund the joint venture's acquisition of an 11th property, a 456-unit property located in Bethesda, Maryland. The Core JV funded the acquisition with $155.0 million in new debt, and capital contributions to the joint venture of $95.0 million, for a purchase price of $250.0 million. AIR has a 53% ownership in the joint venture's acquisition of the eleventh property.
Unconsolidated Joint Ventures
As of December 31, 2023, AIR has equity investments in three significant unconsolidated joint ventures: the Core JV, the Value-Add JV, and the Virginia JV (collectively, the "Joint Venture Entities"). We account for these joint ventures using the equity method of accounting and our ownership interests meet the definition of a VIE. However, we are not the primary beneficiary and do not consolidate these entities.
Virginia JVValue-Add JV (1)Core JV
Initial formation dateOctober 2021June 2023July 2023
AIR Ownership20%30%53%
Outside entities ownership80%70%47%
Number of apartment communities3111
Apartment units1,7484433,549
(1)The purchaser acquired a 70% legal ownership in the Huntington Gateway property, but AIR is entitled to 50% of the net cash flows from operations, and various fees for providing property management, construction, and corporate services to the joint venture.
The carrying value of AIR's investment in each joint venture is included in investment in unconsolidated real estate partnerships in our consolidated balance sheets. AIR's exposure to the obligations of the VIEs is limited to the carrying value of the limited partnership interests and AIR's interest of the joint ventures' guarantor non-recourse liabilities. The following table summarizes certain relevant financial information with respect to our investment in unconsolidated joint ventures (in thousands):
December 31, 2023
Virginia JVValue-Add JVCore JV
Net real estate
$467,020 $131,339 $1,258,307 
Other assets, net
7,061 7,368 41,882 
Total assets$474,081 $138,707 $1,300,189 
Third-party debt$395,000 $88,741 $793,910 
Accrued liabilities and other
4,070 2,528 10,298 
Total liabilities$399,070 $91,269 $804,208 
Total equity$75,011 $47,438 $495,981 
AIR's investment in balance (1)$17,212 $28,606 $268,931 
(1)     AIR's investment in balance includes certain basis differences that are subject to amortization. AIR's investment in unconsolidated real estate partnerships in our consolidated balance sheets also includes $21.3 million related to two immaterial unconsolidated investments.
December 31, 2022
Virginia JVValue-Add JVCore JV
Net real estate
$481,939 $— $— 
Other assets, net
10,841 — — 
Total assets$492,780 $— $— 
Third-party debt$395,000 $— $— 
Accrued liabilities and other
5,179 — — 
Total liabilities$400,179 $— $— 
Total equity$92,601 $— $— 
AIR's investment in balance (1)$20,684 $— $— 
(1)    AIR's investment in unconsolidated real estate partnerships in our consolidated balance sheets includes $21.2 million related to two immaterial unconsolidated investments.
The following tables summarize the financial information related to the Joint Venture Entities for the years ended December 31, 2023, 2022, and 2021 (in thousands):
December 31, 2023
Virginia JVValue-Add JVCore JV
Total revenues$44,725 $6,665 $51,341 
Total expenses64,779 12,969 94,141 
Net loss$(20,054)$(6,304)$(42,800)
AIR's loss from unconsolidated real estate partnerships$(3,999)$(2,772)$(22,877)
December 31, 2022
Virginia JVValue-Add JVCore JV
Total revenues$41,422 $— $— 
Total expenses57,316 — — 
Net loss$(15,894)$— $— 
AIR's loss from unconsolidated real estate partnerships$(3,504)$— $— 
December 31, 2021
Virginia JVValue-Add JVCore JV
Total revenues$7,471 $— $— 
Total expenses11,414 — — 
Net loss$(3,943)$— $— 
AIR's loss from unconsolidated real estate partnerships$(565)$— $—