INVESTMENTS IN UNCONSOLIDATED ENTITIES

12 Months Ended

Dec. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS IN UNCONSOLIDATED ENTITIES

INVESTMENTS IN UNCONSOLIDATED ENTITIES

As of December 31, 2024 and 2023, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands):

	Number of Properties at December 31, 2024			December 31,
Joint Venture		Location	Ownership %	2024		2023
110 William Joint Venture	1	New York, New York	(1)	$	68,467	$	22,314
Pacific Oak Opportunity Zone Fund I (2)	4	Various	47.0%	19,620		23,587
353 Sacramento Joint Venture (3)	1	San Francisco, California	55.0%	—		—
				$	88,087	$	45,901

_____________________

(1) As of December 31, 2024, the Company owned 77.5% of preferred interest and 100% of common interest in the 110 William Joint Venture.

(2) The maximum exposure to loss as a result of the Company’s investment in the Pacific Oak Opportunity Zone Fund I is limited to the carrying amount of the investment.

(3) The Company suspended the equity method of accounting, and will not record the Company's share of losses and any subsequent income for the 353 Sacramento Joint Venture, until the Company’s share of net gain recorded exceeds net losses not recognized during the period the equity method was suspended.

Summarized financial information for investments in unconsolidated entities are as follows (in thousands):

	December 31,
	2024		2023
Assets:
Real estate, net	$	486,177	$	411,028
Total assets	558,371		468,002
Liabilities:
Notes payable, net (1)	446,843		410,563
Total liabilities	484,040		427,794
Total equity	$	74,331	$	40,208

_____________________

(1) The Company guaranteed all debt servicing costs and timely debt payments by the 110 William Joint Venture. As of December 31, 2024 and 2023, the 110 William Joint Venture had $248.7 million of variable-rate debt outstanding that was subject to the Company’s guarantee. Additionally, the 110 William Joint Venture met funding conditions with an aggregate available borrowing capacity of $56.7 million, subject to the Company’s guarantee. As of December 31, 2024, $29.0 million was drawn under the $56.7 million funding facility. The debt was collateralized by the underlying real estate and has an initial maturity date of July 5, 2026, although the maturity date may be extended under certain circumstances. Debt and interest payments were current as of December 31, 2024. Refer to Note 10 for additional details.

	For the Years Ended December 31,
	2024		2023		2022
Total revenues	$	36,029	$	42,002	$	46,518
Operating loss	(47,523)		(123,045)		(41,923)
Net loss	$	(49,503)	$	(51,401)	$	(41,664)