Investment in Real Property

12 Months Ended

Dec. 31, 2022

Note 4 – Investment in Real Property

As of December 31, 2022 and 2021, we owned 11 and nine properties or projects, with aggregate carrying value of $87.9 and $68.1 million, respectively.

The following tables provide information about the carrying value of our owned real property at the dates indicated:


(dollars in thousands)	December 31, 2022		December 31, 2021
Collateral Type
Senior Housing	$	49,917	$	—
Offices		15,414		19,388
Single Family Housing		8,538		4,134
Townhomes		6,712		9,281
Apartments		5,024		—
Residential Lots		2,293		3,012
Condos		—		28,441
Retail		—		3,811
Total	$	87,898	$	68,067


	December 31, 2022				December 31, 2021
(dollars in thousands)	Number of Properties		Carrying Value		Number of Properties		Carrying Value
Collateral Type
Held for sale		7	$	24,516		5	$	52,531
Held for use		4		63,382		4		15,536
Total		11	$	87,898		9	$	68,067

For the years ended December 31, 2022, 2021 and 2020, we recorded the operating revenue, expenses, fixed asset depreciation and impairment in our consolidated statement of operations as shown below for investment in real property, held for sale and held for use, respectively:


	Held for Sale
(dollars in thousands)	December 31, 2022			December 31, 2021			December 31, 2020
Revenue from operations	$	276		$	—		$	—
Gain on sale		984
Less:
Operating expenses		1,990			101			168
Depreciation(1)		125			—			—
Impairment		6,111			—			—
Net loss from investment in real property, held for sale	$	(6,966	)	$	(101	)	$	(168	)

(1)

Depreciation incurred for a real property before it was reclassified to held for sale.


	Held for Use
(dollars in thousands)	December 31, 2022			December 31, 2021			December 31, 2020
Revenue from operations	$	2,523		$	—		$	—
Less:
Operating expenses		3,697			7			—
Depreciation		553			—			—
Impairment		1,485			—			—
Net loss from investment in real property, held for use	$	(3,212	)	$	(7	)	$	—

In April 2022, the Company executed an agreement with an unrelated party to sell a real property with a carrying value of $28.4 million for a sales price of $29.0 million. As part of the sale, the Company received a promissory note from the purchaser in the principal amount of $25.9 million. The note was amended to extend the financing term, resulting in an extension of the maturity date to December 31, 2022 after receiving partial payments on July 1, 2022 and August 31, 2022. In December 2022, the Company amended the loan to extend the maturity date to April 1, 2023, whereby we agreed to an additional advance of $0.4 million. This seller-financed sale of real property was evaluated for derecognition of the transferred assets and income recognition based on whether a sales contract existed and effective control was transferred to the purchaser and it was determined that the transaction met all of the criterion to be recognized as a sale.