Real Estate Investments |
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| Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Investments | Real Estate Investments On January 29, 2026, the Company completed the sale of undeveloped land under predevelopment to an unrelated third party that was classified as held for sale as of December 31, 2025, for proceeds of $4.8 million, resulting in a net loss on disposition of real estate of $0.2 million. On March 12, 2026, in preparation to sell the asset, the Company acquired a 15% membership interest in the partnership that owns the Chronicle Mill mixed-use property for a purchase price of approximately $2.0 million in cash. Chronicle Mill is a mixed-use structure located in Belmont, North Carolina and is comprised of a 238-unit multifamily property, as well as a retail and office component. On March 27, 2026, the Company signed a purchase and sale agreement with a buyer for the disposition of the Solis North Creek and Solis Peachtree Corners real estate financing investments for a combined purchase price of $63.8 million. Prior to the disposition, the investments were classified as held for sale as a result of the strategic repositioning announced on February 16, 2026, and as a result, the Company recorded impairment of $5.4 million. As of March 31, 2026, the Company reclassified the Solis Kennesaw note receivable to held for sale as a result of the strategic repositioning announced on February 16, 2026 to exit the real estate financing line of business. As a result, the Company recorded impairment of $23.8 million using an approximation of fair value as a level 3 input in the fair value hierarchy. On April 30, 2026, the Company fully realized a total of $17.2 million for the real estate financing investment secured by The Allure at Edinburgh, including $1.0 million of operating net cash flow distributions previously received, and used the proceeds to repay debt. On May 20, 2026, the Company completed the First Closing of the Multifamily Portfolio Sale for gross proceeds of $485.0 million. As a result of the transaction, the Company funded $6.4 million in escrow amounts pertaining to various real estate tax estimates, prorations, and post-closing adjustments as agreed upon within the purchase and sale agreement. After transaction costs of $8.5 million, the Company recognized a net gain on disposition of $18.8 million, of which a $0.7 million loss relates to the retail and office properties and is presented in loss on real estate dispositions, net, and $19.5 million gain relates to the multifamily properties and is presented in income from discontinued operations on the condensed consolidated statements of comprehensive (loss) income. The following properties were included in this disposition:
*Represents a property located within a mixed-use community. (1) Properties in discontinued operations represent multifamily assets that are not being retained as a result of the strategic repositioning announced on February 16, 2026. Properties in continuing operations are retail or office assets related to the multifamily assets that are being sold in conjunction with those operations. In connection with the First Closing, the Company made repayments of $265.5 million of secured debt and $195.0 million on the revolving credit facility. Refer to Note 8 for further information on the secured repayments. The First Closing included the multifamily condominium portion of the Constellation Energy Building, known as 1305 Dock Street Apartments. The Company retained the retail and office portions of the property. In connection with the disposition of 1305 Dock Street Apartments as part of the First Closing, the lender for the loan secured by the mixed-use property required a $53.2 million curtailment of the existing loan to release the collateral. As the required curtailment exceeded the proceeds from the disposition of 1305 Dock Street Apartments, the Company and its 10% partner were required to make capital contributions to fund the shortfall. The partner was unable to fund its portion when due, therefore the Company funded the shortfall for its partner, resulting in a note receivable from the partner of $3.7 million. The amount due will bear interest at a rate equal to the WSJ prime rate plus 3% per annum, compounded annually, and distributions from the Constellation Energy Building office and retail components otherwise payable to the partner are applied first to accrued interest and then principal. The Company expects to complete the disposition of the remaining assets included in the Multifamily Portfolio Sale as follows: Greenside Apartments by the end of 2026 and Premier Apartments by mid-2027. As a result, the following properties are classified as held for sale as of June 30, 2026:
________________________________________ *Represents a property located within a mixed-use community. (1) Assets classified as properties in discontinued operations in the table above are both subject to a single purchase and sale agreement entered into during the reporting period. Properties in discontinued operations represent multifamily assets that are not being retained as a result of the strategic repositioning announced on February 16, 2026. All of these assets have met the criteria for held for sale classification under ASC 360, as management has committed to a plan to sell, the assets are available for immediate sale in their present condition, and the sale is expected to be completed within one year. Under the terms of the Multifamily Portfolio Sale, the contractual sales price of Greenside Apartments is $50.0 million. In accordance with applicable guidance for long-lived assets, management evaluated the carrying value of the asset and determined that its estimated fair value less costs to sell was below its carrying amount. As a result, the Company recorded impairment of $8.7 million during the three months ended June 30, 2026. As part of the strategic repositioning announced on February 16, 2026, the Company has also been actively marketing the remainder of the multifamily portfolio, and executed a purchase and sale agreement on July 17, 2026. The assets included in this purchase and sale agreement are the following as of June 30, 2026:
________________________________________ (1) Properties in discontinued operations represent multifamily assets that are not being retained as a result of the strategic repositioning announced on February 16, 2026. All of these assets have met the criteria for held for sale classification under ASC 360, as management has committed to a plan to sell, the assets are available for immediate sale in their present condition, and the sale is expected to be completed within one year. Under the terms of the purchase and sale agreement for these two assets, the contractual sale price of the two assets combined is $95.5 million. In accordance with applicable guidance for long-lived assets, management evaluated the carrying value of the assets and determined that their estimated fair value less costs to sell were below their carrying amounts. As a result, the Company recorded impairment of $12.2 million during the three months ended June 30, 2026. As of June 30, 2026, the Company re-evaluated the fair value of the Solis Kennesaw note receivable based on recent market data. As a result, the Company recorded impairment of $13.5 million using an approximation of fair value as a level 3 input in the fair value hierarchy. During the three months ended June 30, 2026, management determined that certain prospective development projects no longer met the Company's investment and strategic criteria and ceased pursuit of these opportunities. As a result, the Company recorded an impairment charge of $1.8 million to write off capitalized predevelopment, planning, and pursuit costs associated with these projects.
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