Other Assets

3 Months Ended

Mar. 31, 2022

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

The following table summarizes the components of other assets:


$ in thousands	March 31, 2022		December 31, 2021
Capitalized tax abatement, net(1)	$	8,611	$	7,049
Deposits	6,228		3,460
Derivative instruments	3,324		—
Prepaid expenses	1,093		460
Deferred rent	887		528
Deferred financing costs, net	811		818

Other	291		243
Total	$	21,245	$	12,558

(1)We obtained tax abatements in conjunction with our purchases of the Cortona Apartments and 3101 Agler Road properties with expiration dates of December 31, 2038 and December 31, 2031, respectively. We are amortizing the tax abatements over their remaining useful life as a component of property operating expenses in the condensed consolidated statements of operations. As of March 31, 2022, accumulated amortization of the capitalized tax abatements was $0.5 million, and the estimated annual amortization is $0.6 million.

Derivative Instruments

We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate risk, primarily by managing the amount, sources, and duration of our investments, borrowings, and the use of derivative financial instruments. Specifically, we use derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash payments principally related to our borrowings.

We have not designated any of our derivative financial instruments as hedges. Derivatives not designated as hedges are not speculative and are used to manage our exposure to increases in interest rates.

During the three months ended March 31, 2022, we entered into two interest rate cap transactions. The following table summarizes the notional amount and other information related to these instruments as of March 31, 2022:


$ in thousands	Number of Instruments	Notional Amount(1)		Fixed Amount		Fair Value(2)		Weighted Average Remaining Term In Years
Interest Rate Caps	2	$	118,500	$	1,832	$	3,324	2.87

(1)The notional amount represents the amount of the borrowings that we are hedging, but does not represent exposure to credit, interest rate or market risks.

(2)Included in other assets on our condensed consolidated balance sheets. For the three months ended March 31, 2022, the change in fair value of $1.5 million is included in unrealized gain on derivative instruments in our condensed consolidated statements of operations.