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Investment in Unconsolidated Entities (Tables)
$ / shares in Units, $ in Thousands

1 Months Ended

5 Months Ended

12 Months Ended

Mar. 16, 2018

USD ($)

Aug. 15, 2017

USD ($)

officer

board_seat

$ / shares

Dec. 31, 2019

USD ($)

$ / shares

Oct. 31, 2019

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2019

USD ($)

$ / shares

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Apr. 26, 2018

USD ($)

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

INVESTMENTS IN UNCONSOLIDATED ENTITIES

Challenger

On August 15, 2017, the Company, JBGL and GB Challenger, LLC, a Texas limited liability company (“Challenger”) entered into a Membership Interest Purchase and Contribution Agreement (the “Challenger Agreement”) with The Challenger Group, Inc., a Wyoming corporation (“TCGI”), and certain of its affiliates (the “Challenger Entities”) and Brian R. Bahr (“Bahr”), resulting in the Company, through its interest in JBGL, and the Challenger Entities owning a 49.9% and 50.1% ownership interest, respectively, in Challenger, and Challenger owning all of the membership and ownership interests in the subsidiaries of the Challenger Entities named in the Challenger Agreement.

As consideration for such interests, the Company agreed to issue to the Challenger Entities, or their designees, 1,497,000 shares of its common stock, par value $0.01 per share, in a private placement, with 20,000 shares of its common stock held back pending satisfactory resolution of indemnification claims (“Holdback Shares”). On March 16, 2018, the Company issued the Holdback Shares; therefore, $0.2 million was recorded in additional paid-in capital on the consolidated balance sheet as of December 31, 2017. The Challenger Entities, at their discretion, may offer to sell and transfer an additional 20.1% or, in certain circumstances, all of the Challenger Entities’ interest in Challenger (“Additional Membership Interests”) to the Company on or after the third anniversary of the Challenger Agreement. The Company is not required to purchase the Additional Membership Interests. The Company incurred $0.3 million in related acquisition costs during the year ended December 31, 2017 which are included in the cost basis of investment in the unconsolidated entity.

The Challenger Entities operate homebuilding operations under the name Challenger Homes. Challenger constructs townhouses, single family homes and luxury patio homes, and is located in Colorado Springs, Colorado. The Company partnered with Challenger in order to expand its business with partners that are complementary to its current builder partner group and to gain a presence in the Colorado Springs market.

The issuance of the common stock by the Company related to the investment in Challenger was exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and the safe harbor provided by Rule 506 promulgated thereunder. The Company relied, in part, upon representations from each of the individuals that they are “accredited investors” as such term is defined in Rule 501 of Regulation D.

The Company’s investment in Challenger at August 15, 2017 of $15.1 million was more than its share of the estimated underlying net assets of Challenger, resulting in a preliminary difference in basis of $5.1 million, which was attributed to inventory and intangible assets.

The Company’s investment in Challenger on August 15, 2017 was determined as follows (in thousands, except per share data):



Consideration transferred at closing
Green Brick common stock issued	1,477
Price per share of Green Brick common stock (1)	$	9.90
Fair value of common stock consideration	$	14,622

Acquisition related costs	$	241
Total fair value of consideration	$	14,863

Subsequent consideration
Holdback Shares	20
Price per share of Green Brick common stock (1)	$	9.90
Total fair value of subsequent consideration	$	198

Total fair value of consideration	$	15,061


(1)	Based upon closing price of the Company’s common stock upon the parties’ execution of the Challenger Agreement.

The Company holds two of the five board of managers (the “Managers”) seats of Challenger. Challenger’s six officers, employees of the Challenger Entities, were designated by the Managers for the purpose of managing the day to day operations. The Company does not have a controlling financial interest in Challenger as the Company has less than 50% of the voting interests in Challenger. The Company’s investment in Challenger is treated as an unconsolidated investment under the equity method of accounting and is included in investments in unconsolidated entities in the Company’s consolidated balance sheets.

The Company’s investment in Challenger is carried at cost, as adjusted for the Company’s share of income or losses and distributions received, as well as for adjustments related to basis differences between the Company’s cost and the Company’s underlying equity in net assets recorded in Challenger’s financial statements as of the date of acquisition.

As of December 31, 2019, the carrying value of the investment in Challenger was $23.8 million, whereas the underlying 49.9% equity in net assets of Challenger was $19.6 million. The $4.2 million difference represents the premium paid for the Company’s equity interest in excess of Challenger’s carrying value. This basis difference primarily relates to the estimated fair value of inventory, as well as the Challenger Homes trade name and capitalized acquisition costs. The amortization of the basis differences related to inventory is recorded as a reduction of equity in income of unconsolidated entities as homes are closed on and delivered to homebuyers. The basis difference related to the trade name is amortized over ten years as a reduction of equity in income of unconsolidated entities.

The Company recognized $8.3 million, $7.0 million, and $2.7 million related to Challenger in equity in income of unconsolidated entities during the years ended December 31, 2019, 2018, and 2017, respectively.

Providence Title

In March 2018, the Company formed a joint venture with a title company in Georgia to provide title closing and settlement services to our Atlanta-based builder. The Company, through its controlled builder, The Providence Group of Georgia, L.L.C. (“TPG”), owns a 49% equity interest in Providence Group Title, LLC (“Providence Title”). The Company determined that the investment in Providence Title should be treated as an unconsolidated investment under the equity method of accounting and included in investments in unconsolidated entities in the Company’s consolidated balance sheets.

Green Brick Mortgage

In June 2018, the Company formed a joint venture with PrimeLending to provide mortgage loan origination services to our builders. The Company owns a 49% equity interest in Green Brick Mortgage, LLC (“Green Brick Mortgage”) which initiated mortgage loan origination activities in September 2018. The Company determined that the investment in Green Brick Mortgage

should be treated as an unconsolidated investment under the equity method of accounting and included in investments in unconsolidated entities in the Company’s consolidated balance sheets.

EJB River Holdings

In December 2018, EJB River Holdings joint venture was formed by TPG with the purpose to acquire and develop a tract of land in Gwinnett County, Georgia. In May 2019, EJB was admitted as a member of EJB River Holdings, which resulted in TPG and EJB each having a 50% ownership interest in EJB River Holdings. EJB River Holdings had no activity in the period from its formation until October 2019. Please refer to Note 3 for more information.

The Company determined that the investment in EJB River Holdings should be treated as an unconsolidated investment under the equity method of accounting and included in investments in unconsolidated entities in the Company’s consolidated balance sheets.

A summary of the financial information of the unconsolidated entities that are accounted for by the equity method is as follows (in thousands):



			December 31, 2019		December 31, 2018
Assets:
Cash			$	11,699	$	14,584
Accounts receivable			3,252		1,259
Bonds and notes receivable			5,864		5,864
Loans held for sale, at fair value			23,143		3,083
Inventory			73,704		44,375
Other assets			4,012		3,132
Total assets			$	121,674	$	72,297
Liabilities:
Accounts payable			$	1,726	$	2,173
Accrued expenses and other liabilities			7,784		5,328
Notes payable			58,223		31,402
Total liabilities			$	67,733	$	38,903
Owners’ equity:
Green Brick			$	25,910	$	15,653
Others			28,031		17,741
Total owners’ equity			$	53,941	$	33,394
Total liabilities and owners’ equity			$	121,674	$	72,297

	Years Ended December 31,
	2019		2018		2017
Revenues	$	166,368	$	166,102	$	58,958
Costs and expenses	144,097		148,222		44,969
Net earnings of unconsolidated entities	$	22,271	$	17,880	$	13,989
Company’s share in net earnings of unconsolidated entities	$	9,809	$	7,259	$	2,746

During the years ended December 31, 2019, 2018, and 2017, the Company did not identify indicators of impairment for its investments in unconsolidated entities.

Schedule of Equity Method Investments [Line Items]

Equity Method Investment Board Seats

Stock Issued During Period, Shares, Acquisitions | shares

20,000

1,477,000

Common stock, par value (in dollars per share) | $ / shares

$ 0.01

Equity Method Investments

$ 30,294

$ 20,269

Goodwill

680

$ 680

EquityMethodInvestmentSummarizedFinancialInformationCash

11,699

14,584

Income (Loss) from Equity Method Investments

9,809

7,259

$ 2,746

Stock Issued During Period, Value, Acquisitions

14,622

EquityMethodInvestmentSummarizedFinancialInformationAccountsReceivable

3,252

1,259

EquityMethodInvestmentsSummarizedFinancialInformationBondsReceivable

5,864

EquityMethodInvestmentSummarizedFinancialInformationLoansHeldForSale

23,143

3,083

EquityMethodInvestmentSummarizedFinancialInformationInventory

73,704

44,375

EquityMethodInvestmentSummarizedFinancialInformationOtherAssets

4,012

3,132

Equity Method Investment, Summarized Financial Information, Assets

121,674

72,297

EquityMethodInvestmentSummarizedFinancialInformationAccountsPayable

1,726

2,173

EquityMethodInvestmentSummarizedFinancialInformationAccruedExpensesandOtherLiabilities

7,784

5,328

EquityMethodInvestmentSummarizedFinancialInformationNotesPayable

58,223

31,402

Equity Method Investment, Summarized Financial Information, Liabilities

67,733

38,903

Equity Method Investment, Summarized Financial Information, Noncontrolling Interest

25,910

15,653

Equity Method Investment, Summarized Financial Information, Equity Excluding Noncontrolling Interests

28,031

17,741

Equity Method Investment Summarized Financial Information, Equity

53,941

33,394

Equity Method Investment, Summarized Financial Information, Liabilities and Equity

121,674

72,297

Equity Method Investment, Summarized Financial Information, Revenue

166,368

166,102

58,958

Equity Method Investment, Summarized Financial Information, Cost of Sales

144,097

148,222

44,969

Equity Method Investment, Summarized Financial Information, Net Income (Loss)

$ 22,271

17,880

13,989

Equity Method Investments [Table Text Block]

A summary of the financial information of the unconsolidated entities that are accounted for by the equity method is as follows (in thousands):



			December 31, 2019		December 31, 2018
Assets:
Cash			$	11,699	$	14,584
Accounts receivable			3,252		1,259
Bonds and notes receivable			5,864		5,864
Loans held for sale, at fair value			23,143		3,083
Inventory			73,704		44,375
Other assets			4,012		3,132
Total assets			$	121,674	$	72,297
Liabilities:
Accounts payable			$	1,726	$	2,173
Accrued expenses and other liabilities			7,784		5,328
Notes payable			58,223		31,402
Total liabilities			$	67,733	$	38,903
Owners’ equity:
Green Brick			$	25,910	$	15,653
Others			28,031		17,741
Total owners’ equity			$	53,941	$	33,394
Total liabilities and owners’ equity			$	121,674	$	72,297

	Years Ended December 31,
	2019		2018		2017
Revenues	$	166,368	$	166,102	$	58,958
Costs and expenses	144,097		148,222		44,969
Net earnings of unconsolidated entities	$	22,271	$	17,880	$	13,989
Company’s share in net earnings of unconsolidated entities	$	9,809	$	7,259	$	2,746

The Company’s investment in Challenger on August 15, 2017 was determined as follows (in thousands, except per share data):



Consideration transferred at closing
Green Brick common stock issued	1,477
Price per share of Green Brick common stock (1)	$	9.90
Fair value of common stock consideration	$	14,622

Acquisition related costs	$	241
Total fair value of consideration	$	14,863

Subsequent consideration
Holdback Shares	20
Price per share of Green Brick common stock (1)	$	9.90
Total fair value of subsequent consideration	$	198

Total fair value of consideration	$	15,061