Other Assets (Tables)

3 Months Ended

Mar. 31, 2023

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

The following table summarizes the components of other assets:


$ in thousands	March 31, 2023		December 31, 2022
Capitalized tax abatement, net(1)	$	8,022	$	8,166
Derivative instruments	6,999		9,345
Deferred rent	2,161		1,857
Prepaid expenses	940		581
Receivables, net	574		472
Deferred financing costs, net	299		102
Deposits	85		76
Other	193		197
Total	$	19,273	$	20,796

(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, 2023, accumulated amortization of the capitalized tax abatements was $1.1 million, and the estimated annual amortization is $0.6 million.

Derivatives Not Designated as Hedging Instruments

As of March 31, 2023, we have entered into four interest rate caps and one interest rate swap. The following table summarizes the notional amount and other information related to these instruments as of March 31, 2023:


$ in thousands	Number of Instruments	Notional Amount(1)		Fixed Amount		Fair Value(2)		Weighted Average Strike Rate	Weighted Average Remaining Term In Years
Interest rate caps	4	$	198,500	$	2,666	$	5,617	2.13%	1.56
Interest rate swap	1	52,500		N/A		1,382		2.73%	4.08
Total	5	$	251,000	$	2,666	$	6,999

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

(2)The fair value of each derivative instrument is included in other assets on our condensed consolidated balance sheets. For the three months ended March 31, 2023 and 2022, we reported a decrease in fair value of $2.3 million and an increase in fair value of $1.5 million, respectively. These changes are included in unrealized gain (loss) on derivative instruments in our condensed consolidated statements of operations.