Escrow Deposits, Prepaid Expenses and Other Assets

3 Months Ended

Mar. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Escrow Deposits, Prepaid Expenses and Other Assets

Escrow Deposits, Prepaid Expenses and Other Assets

The following table summarizes the components of escrow deposits, prepaid expenses and other assets as of March 31, 2022 and December 31, 2021 (amounts in thousands):

	March 31, 2022		December 31, 2021
Escrow deposits, prepaid expenses and other	$	96,145	$	88,414
Commercial real estate, software, vehicles and FF&E, net	63,438		62,462
Consolidated land not owned	39,714		—
Notes receivable, net	35,062		35,346
Operating lease ROU assets	17,300		17,269
Deferred costs and other intangibles, net	12,224		13,134
Total	$	263,883	$	216,625

Depreciation expense related to commercial real estate, software, vehicles and furniture, fixtures and equipment (“FF&E”), net was $3.0 million and $2.8 million for the three months ended March 31, 2022 and 2021, respectively.

Consolidated Land Not Owned

During the first quarter of 2022, the Company entered into a land option contract whereby it sold land to a third party with an option to repurchase finished lots on a predetermined schedule. Because of our option to repurchase the finished lots, in accordance with ASC 606-10-55-70, we accounted for this transaction as a financing arrangement rather than a sale. Consolidated land not owned is included in escrow deposits, prepaid expenses and other assets and the liability for consolidated land not owned, which represents proceeds received from the third party net of our deposit on the optioned land, is included in accounts payable and accrued expenses in the condensed consolidated balance sheets (see Note 9. Accounts Payable and Accrued Expenses).

Deferred Costs and Other Intangibles, Net

Deferred costs and other intangibles, net, consisted of the following as of March 31, 2022 and December 31, 2021 (amounts in thousands):

	March 31, 2022		December 31, 2021
Deferred leasing costs	$	2,690	$	3,090
Deferred financing costs	22,491		22,491
	25,181		25,581
Less: accumulated amortization	(12,957)		(12,447)
Total	$	12,224	$	13,134

Amortization expense related to deferred leasing costs was $0.8 million and $1.0 million for the three months ended March 31, 2022 and 2021, respectively, and was included in depreciation and amortization within the condensed consolidated statements of operations. Amortization of deferred financing costs that relate to our revolving credit facility was $0.7 million and $0.5 million for the three months ended March 31, 2022 and 2021, respectively, and was included in gross interest, prior to interest capitalization (see Note 8. Debt).

The following table sets forth the estimated annual amortization expense related to deferred costs and other intangibles, net as of March 31, 2022 for future periods (amounts in thousands):

	Deferred Leasing Costs		Deferred Financing Costs		Total
Remaining 2022	$	1,171	$	2,051	$	3,222
2023	44		2,722		2,766
2024	—		2,730		2,730
2025	—		2,722		2,722
2026	—		784		784
Total	$	1,215	$	11,009	$	12,224