v3.26.1
Investment in Unconsolidated Affiliated Real Estate Entity
6 Months Ended
Jun. 30, 2026
Investmentin Unconsolidated Affiliated Real Estate Entity Abstract  
Investment in Unconsolidated Affiliated Real Estate Entity
4.Investment in Unconsolidated Affiliated Real Estate Entity

 

40 East End Ave. Joint Venture

 

On March 31, 2017, the Company acquired an approximate 33.3% membership interest in the 40 East End Ave. Joint Venture from SAYT Master Holdco LLC, an entity majority-owned and controlled by David Lichtenstein, who also majority owns and controls the Sponsor, a related party, for aggregate consideration of $10.3 million. The remaining approximate 66.7% membership interest in the 40 East End Ave. Joint Venture is owned by SAYT Master Holdco, LLC and other affiliated entities of the Sponsor.

 

The Company’s ownership interest in the 40 East End Ave. Joint Venture is a non-managing interest. Because the Company exerts significant influence over but does not control the 40 East End Ave. Joint Venture, it accounts for its ownership interest in the 40 East End Ave. Joint Venture in accordance with the equity method of accounting. All contributions to and distributions of earnings from the 40 East End Ave. Joint Venture are made on a pro rata basis in proportion to each member’s equity interest percentage. Any distributions in excess of earnings from the 40 East End Ave. Joint Venture are made to the members pursuant to the terms of its operating agreement. The Company commenced recording its allocated portion of earnings, cash contributions and cash distributions from the 40 East End Ave. Joint Venture beginning as of March 31, 2017.

 

The 40 East End Ave. Joint Venture, through affiliates, developed and constructed a luxury residential 29-unit condominium project located at the corner of 81st Street and East End Avenue in the Upper East Side neighborhood of Manhattan in New York City, which was substantially completed in March 2020. As of December 31, 2025, 27 of the 29 condominium units had been sold. In February 2026, one of the remaining units was sold, resulting in a pro rata distribution of $2.7 million to the Company from the Joint Venture during the first quarter of 2026. As of June 30, 2026, one condominium unit remained unsold.

 

The 40 East End Ave. Joint Venture Financial Information

 

The following table represents the condensed income statements for the 40 East End Ave. Joint Venture:

 

   For the
Three Months Ended
June 30,
   For the
Six Months Ended
June 30,
 
   2026   2025   2026   2025 
                 
Revenues  $-   $10,936   $8,604   $10,936 
                     
Cost of goods sold   -    8,935    8,604    8,935 
Other expenses   42    234    264    517 
                     
Operating (loss)/income   (42)   1,767    (264)   1,484 
                     
Other (expense)/income, net   (1)   6    4    12 
Net (loss)/income  $(43)  $1,773   $(260)  $1,496 
Company's share of earnings (33.3%)  $(14)  $591   $(87)  $499 

The following table represents the condensed balance sheets for the 40 East End Ave. Joint Venture:

 

   As of   As of 
   June 30,
2026
   December 31,
2025
 
         
Real estate inventory  $7,183   $15,270 
Cash and restricted cash   407    175 
Other assets   363    780 
           
Total assets  $7,953   $16,225 
           
Other liabilities  $13   $24 
Members' capital   7,940    16,201 
           
Total liabilities and members' capital  $7,953   $16,225