Other Assets (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024		December 31, 2023
Derivative instruments	$	4,210	$	4,818
Deferred rent	3,332		2,994
Prepaid expenses	1,798		713
Capitalized tax abatement, net(1)	1,280		1,363
Receivables, net	541		688
Deposits	144		—
Other	727		791
Total	$	12,032	$	11,367

(1)We obtained a tax abatement in conjunction with our purchase of the 3101 Agler property with an expiration date of December 31, 2031. We are amortizing the tax abatement over its remaining useful life as a component of property operating expenses in the condensed consolidated statements of operations. As of June 30, 2024, accumulated amortization of the capitalized tax abatement was $0.4 million.

Schedule of Derivatives Not Designated as Hedging Instruments

The following table summarizes the notional amount and other information related to our interest rate caps and interest rate swaps as of June 30, 2024 and December 31, 2023:

	June 30, 2024
in thousands	Number of Instruments	Notional Amount(1)		Fixed Amount		Fair Value		Weighted Average Strike Rate/Fixed Rate	Weighted Average Remaining Term In Years
Interest rate caps	4	$	188,500	$	2,578	$	2,034	3.29%	0.61
Interest rate swap	1	52,500		N/A		2,176		2.73%	2.83
Total	5	$	241,000	$	2,578	$	4,210

	December 31, 2023
in thousands	Number of Instruments	Notional Amount(1)		Fixed Amount		Fair Value		Weighted Average Strike Rate/Fixed Rate	Weighted Average Remaining Term In Years
Interest rate caps	4	$	178,500	$	2,601	$	3,320	2.64%	1.14
Interest rate swap	1	52,500		N/A		1,498		2.73%	3.33
Total	5	$	231,000	$	2,601	$	4,818

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

Schedule of Derivative Instruments

The following tables summarize the effect of interest rate caps and interest rate swaps reported in gain on derivative instruments, net on the condensed consolidated statements of operations for the three months ended June 30, 2024, and 2023:

	Three Months Ended June 30, 2024
in thousands	Realized gain (loss) on derivative instruments, net		Contractual net interest income (expense)		Unrealized gain (loss), net		Gain (loss) on derivative instruments, net
Interest rate caps	$	251	$	865	$	(904)	$	212
Interest rate swap	—		348		(13)		335
Total	$	251	$	1,213	$	(917)	$	547

	Three Months Ended June 30, 2023
in thousands	Realized gain (loss) on derivative instruments, net		Contractual net interest income (expense)		Unrealized gain (loss), net		Gain (loss) on derivative instruments, net
Interest rate caps	$	—	$	1,405	$	701	$	2,106
Interest rate swap	—		281		1,099		1,380
Total	$	—	$	1,686	$	1,800	$	3,486

The following tables summarize the effect of interest rate caps and interest rate swaps reported in gain on derivative instruments, net on the condensed consolidated statements of operations for the six months ended June 30, 2024, and 2023:

	Six Months Ended June 30, 2024
in thousands	Realized gain (loss) on derivative instruments, net		Contractual net interest income (expense)		Unrealized gain (loss), net		Gain (loss) on derivative instruments, net
Interest rate caps	$	251	$	1,908	$	(1,263)	$	896
Interest rate swap	—		696		678		1,374
Total	$	251	$	2,604	$	(585)	$	2,270

	Six Months Ended June 30, 2023
in thousands	Realized gain (loss) on derivative instruments, net		Contractual net interest income (expense)		Unrealized gain (loss), net		Gain (loss) on derivative instruments, net
Interest rate caps	$	—	$	2,500	$	(849)	$	1,651
Interest rate swap	—		414		303		717
Total	$	—	$	2,914	$	(546)	$	2,368