Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

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 March 31, 2024								As of December 31, 2023
	Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3
Interest rate swaps - pay-fixed, receive floating	$	14,026	$	—	$	14,026	$	—	$	14,679	$	—	$	14,679	$	—
Interest rate swaps - pay-floating, receive fixed	$	—	$	—	$	—	$	—	$	465	$	—	$	465	$	—
Interest rate swaps - forward starting	$	1,574	$	—	$	1,574	$	—	$	331	$	—	$	331	$	—

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, seller financing notes receivable, and preferred equity investment within Level 2 of the GAAP fair value hierarchy, as summarized in the following table (in thousands):


	As of March 31, 2024				As of December 31, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
Non-recourse property debt	$	2,229,842	$	1,986,422	$	2,236,975	$	2,001,532
Unsecured notes payable	$	400,000	$	380,441	$	400,000	$	384,244
Seller financing note receivable, net (1)	$	32,671	$	32,420	$	32,459	$	33,042
Preferred equity investment (2)	$	22,988	$	23,758	$	22,693	$	23,562

(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 market 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.

(2)In conjunction with the Value-Add JV transaction, AIR received a preferred equity investment within the joint venture. The contractual interest rate on the preferred equity investment is 7.25%. The difference between the stated rate and the effective interest rate as of the date of the transaction resulted in a discount recorded of $5.9 million. The preferred equity investment and related discount are included in investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets.