Subsequent Events

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Our significant events subsequent to September 30, 2021 were as follows:

Woodstar Refinancing

In October 2021, we entered into a loan agreement with total borrowings of $380.0 million, secured by mortgages on certain properties within our Woodstar I Portfolio. The loan carries a two-year term, with three one-year extension options, and has an annual interest rate of LIBOR + 2.11%. A portion of the net proceeds was used to repay $217.1 million of outstanding mortgage loans on those properties with a weighted average annual interest rate of LIBOR + 2.71%.

Sale of Non-Controlling Interests in Woodstar Fund

Subsequent to quarter end, we established Woodstar Portfolio Holdings, LLC (the “Fund”), an investment fund which holds the Woodstar I and Woodstar II affordable housing portfolios. As managing member of the Fund, we manage interests purchased by third party investors seeking capital appreciation and an ongoing return, for which we earn (i) a management fee based on each investor’s share of total Fund equity; and (ii) an incentive distribution if the Fund’s returns exceed an established threshold. On November 5, 2021, we entered into subscription and other related agreements with certain third-party institutional investors to sell, through a feeder fund structure, an aggregate 20.6% interest in the Fund for an aggregate subscription price of $216.0 million, subject to certain post-closing adjustments. The Fund carries an initial eight-year term.