Investment in Unconsolidated Ventures

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

At March 31, 2023 and December 31, 2022, the Company held interests in unconsolidated joint ventures that own eight multi-family properties (the "Unconsolidated Properties") and a property in development. The condensed balance sheets below present information regarding such properties (dollars in thousands):


	March 31, 2023		December 31, 2022
ASSETS
Real estate properties, net of accumulated depreciation of $62,273 and $66,945	$	282,329	$	318,304
Cash and cash equivalents	6,909		6,591
Other assets	37,563		35,372
Real estate property held for sale	33,970		—
Total Assets	$	360,771	$	360,267

LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs of $1,367 and $1,421	$	259,482	$	255,261
Accounts payable and accrued liabilities	5,684		8,222
Total Liabilities	265,166		263,483
Commitments and contingencies
Equity:
Total unconsolidated joint venture equity	95,605		96,784
Total Liabilities and Equity	$	360,771	$	360,267

BRT's interest in joint venture equity	$	41,163	$	42,576

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


	March 31, 2023		December 31, 2022
Land	$	46,331	$	59,404
Building	291,473		315,400
Building improvements	6,798		10,445
Real estate properties	344,602		385,249
Accumulated depreciation	(62,273)		(66,945)
Total real estate properties, net	$	282,329	$	318,304

At March 31, 2023 and December 31, 2022, the weighted average interest rate on the mortgages payable is 4.07% and 3.99%, respectively, and the weighted average remaining term to maturity is 5.8 years and 6.1 years, respectively.

The condensed income statements below present information regarding the Unconsolidated Properties (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Revenues:
Rental and other revenue	$	12,132	$	25,231
Total revenues	12,132		25,231

Expenses:
Real estate operating expenses	5,675		11,169
Interest expense	2,455		6,026
Depreciation	2,707		6,636
Total expenses	10,837		23,831
Total revenues less total expenses	1,295		1,400
Other equity earnings	113		55


Gain on insurance recoveries	65		515
Gain on sale of real estate	—		23,652
Loss on extinguishment of debt	—		(30)
Net income from joint ventures	$	1,473	$	25,592

BRT's equity in earnings and equity in earnings from sale of unconsolidated joint venture properties	$	815	$	14,191

Contract to sell property

On March 13, 2023, the unconsolidated joint venture that owns Chatham Court and Reflections, a 494 unit multi-family property located in Dallas and in which the Company has a 50% interest entered into a contract to sell the property. The contract sales price is $73,000,000 and the Company estimates that its share of the (i) gain will be approximately $14,600,000 and (ii) early extinguishment of debt charge will be approximately $167,000. This property is reflected as held for sale at March 31, 2023. The Company anticipates that this sale will be completed in the quarter ending June 30, 2023.