INVESTMENT IN UNCONSOLIDATED VENTURES

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

At December 31, 2021, the Company owns interests in unconsolidated joint ventures that own 23 multi-family properties (the "Unconsolidated Properties"). The condensed balance sheet below presents information regarding such properties (dollars in thousands):


	December 31,
	2021		2020
ASSETS
Real estate properties, net of accumulated depreciation of $133,615 and $145,600	$	734,247	$	1,075,178
Cash and cash equivalents	13,741		16,939
Other Assets	25,535		29,392


Total Assets	$	773,523	$	1,121,509

LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs of $3,423 and $5,537	$	584,479	$	829,646
Accounts payable and accrued liabilities	17,064		20,237
Total Liabilities	601,543		849,883
Commitments and contingencies
Equity:
Total unconsolidated joint venture equity	171,980		271,626
Total Liabilities and Equity	$	773,523	$	1,121,509

Company equity interest in all joint venture equity	$	112,347	$	169,474

NOTE 6—INVESTMENT IN UNCONSOLIDATED VENTURES (Continued)

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


	Year Ended December 31,
	2021		2020
Revenues:
Rental and other revenue	$	121,906	$	127,058
Total revenues	121,906		127,058

Expenses:
Real estate operating expenses	56,507		60,326
Interest expense	30,964		34,918
Depreciation	35,636		41,657
Total expenses	123,107		136,901
Total revenues less total expenses	(1,201)		(9,843)
Other equity earnings	54		117
Impairment of assets	(2,813)		—
Insurance recoveries	2,813		—
Gain on insurance recoveries	2,179		765
Gain on sale of real estate properties	83,984		—
Loss on extinguishment of debt	(9,401)		—
Net income (loss) from joint ventures	$	75,615	$	(8,961)

BRT equity in loss and equity in earnings from sale of unconsolidated joint venture properties	$	30,774	$	(6,024)

Acquisitions

In 2021, the Company did not make any acquisitions through unconsolidated joint ventures.

The table below provides information regarding the Company's property acquisition through an unconsolidated joint venture during the year ended December 31, 2020 (dollars in thousands):


Location	Purchase Date	No. of Units	Purchase Price		Acquisition Mortgage Debt		Initial BRT Equity		Ownership Percentage		Capitalized Property Acquisition Costs
Abbotts Run, Wilmington, NC	2/20/2020	264	$	38,000	$	23,160	$	13,700	80	%	$	459

On March 10, 2022 we acquired for $3,500,000 a 17.45% interest in a planned 240-unit development property located in Johns Island, SC.

NOTE 6—INVESTMENT IN UNCONSOLIDATED VENTURES (Continued)

Dispositions

The table below provides information regarding the disposition of real estate properties by an unconsolidated joint venture in the year ended December 31, 2021 (dollars in thousands):


Location	Sale Date	No. of Units	Sales Price		BRT's Share of Gain on Sale		Partner's Share of Gain on Sale		BRT Share of Loss of Extinguishment of Debt
Avenue Apts,Ocoee, FL	7/20/2021	522	$	107,661	$	19,518	$	20,150	$	4,474
Parc at 980, Lawrenceville, GA	7/28/2021	586	118,250		15,464		28,852		107
		1,108	$	225,911	$	34,982	$	49,002	$	4,581

There were no sales of properties by unconsolidated joint ventures in the year ended December 31, 2020.

On February 8, 2022, the unconsolidated joint venture in which we have a 65% equity interest sold The Veranda at Shavano, a 288-unit multi-family property in San Antonio, Texas, for a sales price of $53,800,000. We estimate that the gain on the sale of this property will be approximately $23,700,000 and that our share of the gain, which will be recognized in the first quarter of 2022, will be approximately $12,700,000. This property was secured by $25,100,000 of mortgage debt with 1.4 years years of remaining term to maturity and bearing an interest rate of 3.61% which was repaid in connection with the sale.

The table below provides information regarding the sale of venture interests to our joint venture partners in the year ended December 31, 2021:


Location	Sale Date	No. of Units	Sales Price		BRT's Share of Gain on Sale
Anatole, Daytona Beach, FL	4/20/2021	208	$	7,540	$	2,244
OPOP Tower and Lofts, St. Louis, MO	11/4/2021	181	3,000		388
		389	$	10,540	$	2,632

There were no sales of interest in joint ventures in the year ended December 31, 2020.

Joint Venture Buyouts

In 2021, the Company purchased its venture partners' remaining interests in three joint ventures that own three properties and increased its ownership interest in a fourth joint venture that owns two properties. The operations and accounts of the three joint ventures which, as a result of such purchases, are wholly-owned by the Company are consolidated into the operations and accounts of the Company as of their respective acquisition dates. The table below provides information regarding these four acquisitions (dollars in thousands):


Location	Buyout Date	No. of Units	Percentage of Interest Purchased		Purchase Price		New Ownership Percentage		Mortgage Balance at Acquisition
Civic Center I/II, Southaven, MS	5/4/2021	776	14.7	%	$	6,031	74.7	%	N/A
Bells Bluff, West Nashville, TN	8/18/2021	402	41.9	%	27,860		100	%	$	52,000
Crestmont at Thornblade, Greenville, SC	10/1/2021	266	10.0	%	1,600		100	%	26,425
Crossings of Bellevue, Nashville, TN	12/1/2021	300	20.0	%	16,128		100	%	37,680
		1,744			$	51,619			$	116,105