Investment in Unconsolidated Ventures

3 Months Ended

Mar. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

At March 31, 2021 and December 31, 2020, the Company held interests in unconsolidated joint ventures (the "Unconsolidated Properties"), that own 31 multi-family properties. The condensed balance sheets below present information regarding such properties (dollars in thousands):


	March 31, 2021		December 31, 2020
ASSETS
Real estate properties, net of accumulated depreciation of $155,455 and $145,600	$	1,064,820	$	1,075,178
Cash and cash equivalents	14,900		16,939

Other assets	27,667		29,392
Total Assets	$	1,107,387	$	1,121,509

LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs of $5,311 and $5,537	$	828,591	$	829,646
Accounts payable and accrued liabilities	15,099		20,237
Total Liabilities	843,690		849,883
Commitments and contingencies
Equity:
Total unconsolidated joint venture equity	263,697		271,626
Total Liabilities and Equity	$	1,107,387	$	1,121,509

BRT's interest in joint venture equity	$	164,248	$	169,474

As of the indicated dates, real estate properties of our unconsolidated joint ventures consist of the following (dollars in thousands):


	March 31, 2021		December 31, 2020
Land	$	148,341	$	148,341
Building	1,027,979		1,029,739
Building improvements	43,955		42,698
Real estate properties	1,220,275		1,220,778
Accumulated depreciation	(155,455)		(145,600)
Total real estate properties, net	$	1,064,820	$	1,075,178

At March 31, 2021 and December 31, 2020, the weighted average interest rate on the mortgages payable is 3.96% and 3.96%, respectively, and the weighted average remaining term to maturity is 7.42 years

The condensed income statement below presents information regarding the Unconsolidated Properties (dollars in thousands):


	Three Months Ended March 31,
	2021		2020
Revenues:
Rental and other revenue	$	32,672	$	30,843
Total revenues	32,672		30,843

Expenses:
Real estate operating expenses	15,703		14,532
Interest expense	8,522		8,757
Depreciation	10,385		10,357
Total expenses	34,610		33,646
Total revenues less total expenses	(1,938)		(2,803)
Other equity earnings	9		8
Impairment charges	(2,323)		—


Insurance recoveries	2,323		—

Net loss from joint ventures	$	(1,929)	$	(2,795)

BRT's equity in loss from joint ventures	$	(1,345)	$	(1,815)

During the three months ended March 31, 2021, we recognized $2,300,000 of impairment charges at three of our equity investments located in Texas due to storm damage and also recognized $2,300,000 of insurance recoveries related to the impairment charges resulting from the Texas ice storm damage. There were no comparable charges in the corresponding period of the prior year.

On April 20, 2021, the Company sold its joint venture interest in Anatole Apartments, a property located in Daytona Beach, FL. The Company will recognize a gain of approximately $2,200,000 on the sale in the quarter ending June 30, 2021.

On May 4, 2021, the Company purchased an additional 14.69% interest in Civic Center I and Civic Center II - Southaven, MS, from its existing joint venture partner for $6,031,000. After giving effect to this purchase, the Company owns 74.69% of the equity interest in these properties.

On May 7, 2021, the Company entered into an agreement to acquire the 41.9% interest owned by its joint venture partners in the entity that owns Bells Bluff, a 402-unit multi-family property located in West Nashville, TN. The purchase price for the interest, after giving effect to the joint venture partners' carried interest, is approximately $28,000,000, subject to working capital and certain other adjustments. After giving effect to this purchase, Bells Bluff will be wholly-owned by the Company.

The completion of this purchase is subject to customary closing conditions, including the refinancing of the $47,200,000 floating rate (i.e., 2.975% at March 31, 2021) mortgage debt on the property.