Quarterly report pursuant to Section 13 or 15(d)

Investments In And Advances To Unconsolidated Real Estate Joint Ventures

v3.22.1
Investments In And Advances To Unconsolidated Real Estate Joint Ventures
3 Months Ended
Mar. 31, 2022
Investments In And Advances To Unconsolidated Real Estate Joint Ventures [Abstract]  
Investments In And Advances To Unconsolidated Real Estate Joint Ventures 5. Investments in and Advances to Unconsolidated Real Estate Joint Ventures

As of March 31, 2022, the Company had equity interests in and advances to unconsolidated real estate joint ventures involved in the development of multifamily rental apartment communities and single-family master planned for sale housing communities. In addition, the Company owns a 50% equity interest in the Altman Companies, a developer and manager of multifamily apartment communities.

Investments in unconsolidated real estate joint ventures are accounted for as unconsolidated VIEs under the equity method of accounting.

The Company’s investments in and advances to unconsolidated real estate joint ventures consisted of the following (in thousands):

March 31,

December 31,

2022

2021

Altis Grand Central

$

731

$

730

Altis Ludlam Trail (1)

11,144

10,831

Altis Grand at The Preserve

194

Altis Little Havana

1,078

1,021

Altis Lake Willis Phase 1

442

437

Altis Lake Willis Phase 2

2,715

2,538

Altis Miramar East/West

2,904

2,878

Altis Grand at Suncoast

3,641

2,780

Altis Blue Lake

351

260

Altis Santa Barbara

409

The Altman Companies

16,157

16,716

ABBX Guaranty

3,750

3,750

Bayview

1,367

1,308

Marbella

872

974

The Main Las Olas

1,983

1,990

Sky Cove

1,348

1,686

Sky Cove South

4,608

4,708

Other

166

165

Total

$

53,666

$

52,966

(1)The carrying value of BBXRE’s investment at March 31, 2022 and December 31, 2021 includes $10.6 million and $10.3 million, respectively, related to BBXRE’s investment in the preferred equity associated with the Altis Ludlam Trail project accounted for as a loan receivable.

See Note 7 to the Company’s consolidated financial statements for the year ended December 31, 2021 included in the 2021 Annual Report for the Company’s accounting policies relating to its investments in unconsolidated real estate joint ventures, including the Company’s analysis and determination that such entities are VIEs in which the Company is not the primary beneficiary.

In February 2022, BBXRE invested $0.4 million in Altis Santa Barbara – Naples Manager LLC (“Altis Santa Barbara”). Altis Santa Barbara was formed to serve as the Manager of Santa Barbara – Naples Venture, LLC, a joint venture sponsored by the Altman Companies that was formed to develop, construct, and manage Altis Santa Barbara, a 242 unit multifamily apartment community located in Naples, Florida.

As of March 31, 2022, BBRE had invested $8.1 million in a joint venture with CC Homes to develop Marbella, a residential community expected to be comprised of 158 single-family homes in Miramar, Florida. As of March 31, 2022, the joint venture had executed contracts to sell all of the 158 single-family homes comprising Marbella and had closed on the sale of 51 homes. During the three months ended March 31, 2022, BBXRE recognized $1.8 million of equity earnings and received $2.0 million of distributions from the joint venture.

Summarized Financial Information of Certain Unconsolidated Real Estate Joint Ventures

The tables below set forth financial information, including condensed statements of financial condition and operations, related to the Altman Companies joint venture (in thousands):

March 31,

December 31,

2022

2021

Assets

Cash

$

2,346

995

Properties and equipment

386

387

Investment in unconsolidated subsidiaries

7,441

7,153

Goodwill

16,683

16,683

Due from related parties

5,471

4,462

Other assets

9,345

8,662

Total assets

$

41,672

38,342

Liabilities and Equity

Other liabilities

$

12,929

8,463

Total liabilities

12,929

8,463

Total equity

28,743

29,879

Total liabilities and equity

$

41,672

38,342

For the Three Months Ended March 31,

2022

2021

Total revenues

$

2,168

$

1,826

Other expenses

(3,032)

(2,525)

Operating loss

(864)

(699)

Equity in (losses) earnings from unconsolidated investment in Altman Glenewinkel Construction, LLC

(459)

367

Net loss

(1,323)

(332)

Equity in net loss of unconsolidated real estate joint venture - The Altman Companies

$

(662)

$

(166)

The tables below set forth financial information, including condensed statements of financial condition and operations, related to the Marabella joint venture (in thousands):

March 31,

December 31,

2022

2021

Assets

Cash

$

2,464

4,371

Inventory

49,420

49,967

Other assets

1,742

1,835

Total assets

$

53,626

56,173

Liabilities and Equity

Notes payable

$

30,504

31,256

Other liabilities

21,815

23,885

Total liabilities

52,319

55,141

Total equity

1,307

1,032

Total liabilities and equity

$

53,626

56,173

For the Three Months Ended March 31,

2022

2021

Total revenues

$

15,792

Cost of goods sold

(11,289)

Other expenses

(727)

(341)

Net earnings (loss)

3,776

(341)

Equity in net earnings (loss) of unconsolidated real estate joint venture –

Marabella

$

1,849

(239)