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):
(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):
The tables below set forth financial information, including condensed statements of financial condition and operations, related to the Marabella joint venture (in thousands):
The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef