Other Assets (Tables)

6 Months Ended

Jun. 30, 2022

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

Schedule of Other Assets

The following table summarizes the components of other assets:

$ in thousands	June 30, 2022		December 31, 2021
Capitalized tax abatement, net(1)	$	8,456	$	7,049
Derivative instruments	4,278		—
Prepaid expenses	1,383		460
Deferred rent	1,247		528
Deferred financing costs, net	637		818
Deposits	587		3,460
Other	180		243
Total	$	16,768	$	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 June 30, 2022, accumulated amortization of the capitalized tax abatements was $0.6 million, and the estimated annual amortization is $0.6 million.

Derivatives Not Designated as Hedging Instruments

During the six months ended June 30, 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 June 30, 2022:

$ in thousands	Number of Instruments	Notional Amount(1)		Fixed Amount		Fair Value(2)		Strike Rate		Weighted Average Remaining Term In Years
Interest Rate Caps	2	$	118,500	$	1,808	$	4,278	1.0	%	2.62

(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)The fair value of the interest rate caps is included in other assets on our condensed consolidated balance sheets. For the three and six months ended June 30, 2022, the changes in fair value of $1.0 million and $2.5 million, respectively, are included in unrealized gain on derivative instruments in our condensed consolidated statements of operations.