v3.25.3
Fair Value of Assets and Liabilities
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities
Our financial instruments include cash and cash equivalents, restricted cash and cash equivalents, mortgages notes payable, accounts payable and interest rate caps. We remeasure our interest rate caps at fair value on a quarterly basis. As of September 30, 2025 and December 31, 2024, the fair value of our other financial instruments approximated their carrying values in our condensed consolidated financial statements due to their short term nature or floating interest rates, except for our fixed rate mortgage notes payable.
Our fixed rate mortgage notes payable had an aggregate carrying value of $2,796,892 and $1,665,649 as of September 30, 2025 and December 31, 2024, respectively, and a fair value of $2,783,065 and $1,535,640 as of September 30, 2025 and December 31, 2024, respectively. We estimate the fair value of our fixed rate mortgage notes payable using significant unobservable inputs, including discounted cash flow analyses and prevailing market interest rates.
The table below presents certain of our assets measured on a recurring and nonrecurring basis at fair value as of September 30, 2025 and December 31, 2024, categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset:
Quoted Prices inSignificant OtherSignificant
Active Markets forObservableUnobservable
Identical AssetsInputsInputs
 Total(Level 1)(Level 2)(Level 3)
As of September 30, 2025
Recurring:
Investment in unconsolidated joint venture$119,100 $— $— $119,100 
Interest rate caps$5,340 $— $5,340 $— 
Nonrecurring:
Real estate properties (1)
$3,790 $— $— $3,790 
As of December 31, 2024
Recurring:
Investment in unconsolidated joint venture$116,732 $— $— $116,732 
Interest rate caps$16,916 $— $16,916 $— 
(1)We recognized a loss on impairment of real estate of $6,081 during the nine months ended September 30, 2025, to reduce the carrying value of one property that was classified as held for sale as of September 30, 2025 to its fair value less estimated costs to sell, based on market-based comparative valuations (Level 3 inputs). See Note 3 for further information on our held for sale properties.
The fair value of our investment in the unconsolidated joint venture is determined by applying our ownership percentage to the net asset value of the entity. The net asset value of the unconsolidated joint venture uses similar estimation techniques as those used for consolidated real estate properties, including discounting expected future cash flows of the underlying real estate investments based on prevailing market rents over a holding period and including an exit capitalization rate to determine the final year of cash flows.
The fair values of our interest rate cap derivatives are based on prevailing market prices in secondary markets for similar derivative contracts as of the measurement date.
The discount rates, exit capitalization rates and holding periods used to determine the fair value of our investment in the unconsolidated joint venture are significant unobservable inputs and are shown in the table below:
Exit
ValuationDiscountCapitalizationHolding
TechniqueRatesRatesPeriods
As of September 30, 2025
Investment in unconsolidated joint venture Discounted cash flow
6.25% - 8.00%
5.25% - 6.50%
10 - 11 years
As of December 31, 2024
Investment in unconsolidated joint ventureDiscounted cash flow
6.25% - 8.25%
5.25% - 6.50%
10 - 12 years

The table below presents a summary of the changes in fair value for our investment in the unconsolidated joint venture:
Three Months Ended September 30,
Nine Months Ended September 30,
 2025202420252024
Beginning balance$117,854 $117,451 $116,732 $115,360 
Equity in earnings of unconsolidated joint venture
2,236 1,161 5,338 5,232 
Distributions from unconsolidated joint venture(990)(990)(2,970)(2,970)
Ending balance$119,100 $117,622 $119,100 $117,622