XML 30 R17.htm IDEA: XBRL DOCUMENT v3.21.2
Investment in Unconsolidated Ventures
 6 Months Ended
Jun. 30, 2021
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Unconsolidated Ventures Investment in Unconsolidated VenturesAt June 30, 2021 and December 31, 2020, the Company held interests in unconsolidated joint ventures (the "Unconsolidated Properties"), that own 30 and 31 multi-family properties, respectively. The condensed balance sheets below present information regarding such properties (dollars in thousands):
June 30, 2021December 31, 2020
ASSETS
Real estate properties, net of accumulated depreciation of $142,413 and $145,600
$896,944 $1,075,178 
Cash and cash equivalents15,249 16,939 
Other assets32,116 29,392 
Real estate properties held for sale139,711 $— 
Total Assets$1,084,020 $1,121,509 
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs of $4,951 and $5,537
$814,067 $829,646 
Accounts payable and accrued liabilities20,108 20,237 
Total Liabilities834,175 849,883 
Commitments and contingencies
Equity:
Total unconsolidated joint venture equity249,845 271,626 
Total Liabilities and Equity$1,084,020 $1,121,509 
BRT's interest in joint venture equity$159,799 $169,474 
As of the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands):
June 30, 2021December 31, 2020
Land$110,887 $148,341 
Building893,443 1,029,739 
Building improvements35,027 42,698 
   Real estate properties1,039,357 1,220,778 
Accumulated depreciation(142,413)(145,600)
    Total real estate properties, net$896,944 $1,075,178 

At June 30, 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 7.23 years and 7.67 years, respectively.
The condensed income statement below presents information regarding the Unconsolidated Properties (dollars in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Revenues:
Rental and other revenue$33,005 $31,542 $65,677 $62,385 
Total revenues33,005 31,542 65,677 62,385 
Expenses:
Real estate operating expenses15,233 14,674 30,936 29,206 
Interest expense8,472 8,766 16,994 17,523 
Depreciation9,791 10,417 20,176 20,773 
Total expenses33,496 33,857 68,106 67,502 
Total revenues less total expenses(491)(2,315)(2,429)(5,117)
Equity in earnings5 9 14 17 
Impairment charges(490)— (2,813)— 
Insurance recoveries490 — 2,813 — 
Gain on insurance recoveries— 338 — 338 
Net loss from joint ventures$(486)$(1,968)$(2,415)$(4,762)
BRT's equity in loss from joint ventures$(492)$(1,387)$(1,837)$(3,202)

During the three and six months ended June 30, 2021, three of the unconsolidated Texas joint ventures recognized (i) $490,000 and $2,813,000 of impairment charges, respectively, as a result of ice storm damage and (ii) $490,000 and $2,813,000 of related insurance recoveries, respectively.
On April 20, 2021, the Company sold its joint venture interest in Anatole Apartments, a property located in Daytona Beach, FL. The Company recognized a gain of $2,244,000 on the sale.
On May 4, 2021, the Company purchased a 14.69% interest in Civic Center I and Civic Center II - Southaven, MS, from its joint venture partner for $6,031,000. After giving effect to this purchase, the Company owns 74.69% of the equity interest in the venture that owns 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 $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 June 30, 2021) mortgage debt on the property.

On July 20, 2021, the joint venture which owns The Avenue Apartments, Ocoee, FL sold the property for $107,661,000 and for the quarter ended September 30, 2021, will recognize a gain on the sale of this property of approximately $39,000,000. The Company's share of the gain will be approximately $19,000,000. The joint venture will also recognize a mortgage prepayment charge of $8,661,000 of which BRT's share will be approximately $4,200,000. At June 30, 2021, there was $53,060,000 of mortgage debt secured by this property which bore a 3.90% interest rate.

On July 28, 2021, the joint venture which owns Parc at 980, Lawrenceville, GA sold the property for $118,250,000 million and for the quarter ended September 30, 2021, will recognize a gain on the sale of this property of approximately $44,000,000. Our share of the gain will be approximately $15,000,000. At June 30, 2021, there was $54,447,000 of mortgage debt secured by this property which bore a 3.97% interest rate.