Investment in Unconsolidated Ventures

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

At March 31, 2022 and December 31, 2021, the Company held interests in unconsolidated joint ventures that own 21 and 23 multi-family properties (the "Unconsolidated Properties"), respectively. The condensed balance sheets below present information regarding such properties (dollars in thousands):


	March 31, 2022		December 31, 2021
ASSETS
Real estate properties, net of accumulated depreciation of $125,930 and $133,615	$	675,246	$	734,247
Cash and cash equivalents	11,567		13,741
Other assets	25,944		25,535

Total Assets	$	712,757	$	773,523

LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs of $3,244 and $3,423	$	531,246	$	584,479
Accounts payable and accrued liabilities	10,266		17,064
Total Liabilities	541,512		601,543
Commitments and contingencies
Equity:
Total unconsolidated joint venture equity	171,245		171,980
Total Liabilities and Equity	$	712,757	$	773,523

BRT's interest in joint venture equity	$	106,025	$	112,347

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


	March 31, 2022		December 31, 2021
Land	$	92,378	$	97,230
Building	678,140		739,577
Building improvements	30,658		31,055
Real estate properties	801,176		867,862
Accumulated depreciation	(125,930)		(133,615)
Total real estate properties, net	$	675,246	$	734,247

At March 31, 2022 and December 31, 2021, the weighted average interest rate on the mortgages payable is 4.07% and 3.97%, respectively, and the weighted average remaining term to maturity is 7.64 years and 7.60 years , respectively.

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


	Three Months Ended March 31,
	2022		2021
Revenues:
Rental and other revenue	$	25,231	$	32,672
Total revenues	25,231		32,672

Expenses:
Real estate operating expenses	11,169		15,703
Interest expense	6,026		8,522
Depreciation	6,636		10,385
Total expenses	23,831		34,610
Total revenues less total expenses	1,400		(1,938)
Other equity earnings	55		9
Impairment of assets	—		(2,323)
Insurance recoveries	—		2,323
Gain on insurance recoveries	515		—
Gain on sale of real estate	23,652		—
Loss on extinguishment of debt	(30)		—
Net income (loss) from joint ventures	$	25,592	$	(1,929)

BRT's equity in earnings (loss) and equity in earnings from sale of unconsolidated joint venture properties	$	14,191	$	(1,345)

Joint Venture Sales

On February 8, 2022, the unconsolidated joint venture in which the Company had a 65% equity interest sold The Verandas at Shavano, a 288-unit multi-family property in San Antonio, TX, for a sales price of $53,750,000. The gain on the sale of this property was $23,652,000 and BRT's share of the gain was $12,961,000. In connection with the sale, mortgage debt of $25,100,000 with 1.2 years of remaining term to maturity and bearing an interest rate of 3.61% was repaid.

Subsequent to March 31, 2022, the unconsolidated joint ventures in which the Company has a (i) 75% equity interest entered into a contract dated as of April 16, 2022 to sell Retreat at Cinco Ranch, a 268-unit multi family property in San Antonio, TX for $68,500,000 and (ii) 65% equity interest entered into a contract dated as of May 3, 2022 to sell The Vive, a 312-unit multi-family property in Kannapolis, NC for $92,000,000. The completion of these two sales are subject to the satisfaction of customary closing conditions and are not contingent upon the closing of one-another; it is anticipated that such sales will be completed during the quarter ending June 30, 2022.

Joint Venture Acquisitions

On March 10, 2022, the Company purchased a 17.45% interest in a planned 240-unit development property, Stono Oaks, located in Johns Island, SC. The purchase price for the interest, was $3,500,000, which includes $2,122,000 held in escrow at March 31, 2022.

Joint Venture Buyouts

On March 23, 2022, the Company completed its acquisition of the remaining 28.1% interest owned by its joint venture partner in the entity that owns Verandas at Alamo, a 288-unit multi-family property located in San Antonio, TX. The purchase price for the interest was $8,721,000. As a result of this purchase, Verandas at Alamo, effective as of the purchase date, is wholly-owned, and its operations and accounts are consolidated, including mortgage debt (see note 9 - "Debt Obligations").

Subsequent to March 31, 2022, the Company completed its acquisition of the remaining 21.6% interest owned by its joint venture partner in the entity that owns Vanguard Heights, a 174-unit multi-family property located in Creve Coeur, MO. The purchase price for the interest was $4,800,000. As a result of this purchase, Vanguard Heights, effective as of the purchase

date, is wholly-owned and its operations and accounts will be consolidated, including mortgage debt in principal amount of $29,700,000 with an interest rate of 4.41% (interest only until July 2025) and maturing in July 2031.