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REAL ESTATE DISPOSITIONS
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
REAL ESTATE DISPOSITIONS REAL ESTATE DISPOSITIONS
During the year ended December 31, 2024, the Company disposed of an apartment property, 334 developable acres of undeveloped land and 89 residential homes. During the year ended December 31, 2023, the Company disposed of one school property, 186 developable acres of undeveloped land and 274 residential homes. During the year ended December 31, 2022, the Company disposed of two office buildings, one hotel and 67 developable acres of undeveloped land. The purchasers were not affiliated with the Company nor the Advisor.
In September 2024, the Company sold the Lofts at NoHo Commons, an apartment property from the Company’s strategic opportunistic properties segment, for proceeds of $92.5 million, before closing costs and credits of $6.3 million. The Company repaid $68.5 million of the outstanding principal balance due under the secured mortgage loan.
During the year ended December 31, 2024, the Company sold 334 developable acres of Park Highlands undeveloped land, from the Company’s strategic opportunistic properties segment, for proceeds of $147.8 million, net of closing costs and credits of $20.7 million for future development obligations and before deposits of $9.5 million. The Company recognized a pre-tax gain on sale of real estate, net of $116.6 million related to the disposition. A portion of the Park Highlands undeveloped land was collateral for the Series C bonds and in connection with the sales, the Company repaid 218.0 million Israeli new shekels ($59.8 million as of December 31, 2024) of Series C bonds. Previously, the land was contributed to a TRS, which increased its tax basis. For the year ended December 31, 2024, the land sold resulted in a $10.0 million income tax provision. The income tax provision is based on the U.S. federal statutory rate of 21% applied to the taxable gain realized from the date of contribution of land into the TRS through the date of sale. There were no state taxes related to this disposition.
During the year ended December 31, 2024, the Company sold 89 residential homes, from the Company’s residential homes segment, for proceeds of $13.8 million, net of closing costs and adjustments. The Company recognized a gain on sale of real estate, net of $3.8 million related to the disposition and repaid $6.4 million of the outstanding principal balance due under secured mortgage loans.
During the year ended December 31, 2023, the Company sold 274 residential homes, from the Company’s residential homes segment, for proceeds of $37.2 million, net of closing costs and adjustments. The Company recognized a gain on sale of real estate, net of $5.6 million related to the disposition and also repaid $17.6 million of the outstanding principal balance due under secured mortgage loans.
During the year ended December 31, 2023, the Company sold 186 developable acres of Park Highlands undeveloped land, from the Company’s strategic opportunistic properties segment, for proceeds of $81.2 million, net of closing costs and credits of $11.2 million for future development obligations and before deposits of $7.5 million. The Company recognized a pre-tax gain on sale of real estate, net of $73.2 million related to the disposition. Previously, the land was contributed to a TRS, which increased its tax basis. For the year ended December 31, 2023, the land sold resulted in a $6.6 million income tax provision. The income tax provision is based on the U.S. federal statutory rate of 21% applied to the taxable gain realized from the date of contribution of land into the TRS through the date of sale. There were no state taxes related to this disposition.
In May 2023, the Company sold the Madison Square School, from the Company’s strategic opportunistic properties segment, for proceeds of $6.4 million, before closing costs and credits of $0.3 million. The Company recognized a gain on sale of real estate, net of $3.3 million related to the disposition. Subsequent to the sale, the Madison Square office complex had three office buildings remaining.
In November 2022, the Company sold 67 developable acres of Park Highlands undeveloped land, from the Company’s strategic opportunistic properties segment, for $55.0 million, before closing costs and credits. The Company recognized a pre-tax gain on sale of $42.8 million related to the disposition. Previously, the land was contributed to a TRS, which increased its tax basis. The land sale resulted in a $4.9 million income tax provision. The income tax provision is based on the U.S. federal statutory rate of 21% applied to the taxable gain realized from the date of contribution of land into the TRS through the date of sale. There were no state taxes related to this disposition.
In September 2022, the Company sold the Springmaid Beach Resort, from the Company’s hotel segment for $91.0 million, before closing costs and credits. The carrying value of the Springmaid Beach Resort as of the disposition date was $87.2 million, which was net of $3.4 million of accumulated depreciation and amortization and $2.5 million of impairment charges. In connection with the sale of the Springmaid Beach Resort, the Company repaid $53.0 million of the outstanding principal balance due under the mortgage loan secured by the Springmaid Beach Resort and $1.3 million of the proceeds were held for contingent repairs related to the property.
In January 2022, the Company sold two office buildings related to the Richardson Office portfolio, from the Company’s strategic opportunistic properties segment and containing 141,950 rentable square feet in Richardson, Texas (“Greenway Buildings”) for $11.0 million, before closing costs and credits. The carrying value of the Greenway Buildings as of the disposition date was $5.6 million, which was net of $3.2 million of accumulated depreciation and amortization. In connection with the sale of the Greenway Buildings, the Company repaid $9.1 million of the outstanding principal balance due under the mortgage loan secured by the Greenway Buildings. The Company recognized a gain on sale of $3.6 million related to the disposition of the Greenway Buildings, net of closing costs and adjustments.
The following table reconciles the U.S. federal statutory income tax rate to our effective income tax rate for the transaction’s taxable gain:
Year Ended December 31,
202420232022
U.S. federal statutory income tax rate21 %21 %21 %
Net capital loss carryforwards utilized— %— %(3)%
Change in valuation allowance— %— %(1)%
Effective rate21 %21 %17 %
The operations of real estate properties sold and gain or losses on sales are included in continuing operations in the accompanying consolidated statements of operations. The following table summarizes certain revenues and expenses related to these properties for the years ended December 31, 2024, 2023 and 2022 (in thousands):
 Years Ended December 31,
 202420232022
Revenues
Rental income$7,403 $13,822 $19,186 
Hotel revenues— — 20,983 
Other operating income287 631 621 
Total revenues$7,690 $14,453 $40,790 
Expenses
Operating, maintenance, and management$1,999 $3,812 $6,017 
Real estate taxes and insurance1,505 5,552 5,270 
Hotel expenses— — 12,669 
Asset management fees to affiliates945 1,542 1,823 
Depreciation and amortization2,475 4,559 5,607 
Interest expense, net4,196 7,091 8,519 
Total expenses$11,120 $22,556 $39,905