v3.25.4
Assets and Liabilities of Disposal Group Held for Sale
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Assets and Liabilities of Disposal Group Held for Sale
9. Assets and Liabilities of Disposal Group Held for Sale

During the years ended December 31, 2025, 2024, and 2023 the Company repositioned its business through the opportunistic disposition over time of its joint venture equity investments in multi-family properties and reallocation of its capital away from such assets to its targeted assets. As part of this process, the Company determined that certain joint venture equity investments met the criteria to be classified as held for sale and the assets and liabilities of the respective Consolidated VIEs were included in assets and liabilities of disposal group held for sale on the accompanying consolidated balance sheets. The Company completed its disposition of the real property held by its joint venture equity investments in multi-family properties during the year ended December 31, 2025. Accordingly, assets and liabilities of disposal group held for sale as of December 31, 2025 consisted of assets and liabilities held by the respective Consolidated VIEs for the conclusion of business operations after the aforementioned real property sales.

The following table presents the carrying values of the major classes of assets and liabilities of disposal group held for sale as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025December 31, 2024
Cash and cash equivalents
$510 $2,461 
Real estate, net — 111,032 
Other assets 746 5,120 
Total assets of disposal group held for sale (1)
$1,256 $118,613 
Mortgages payable on real estate, net (2)
$— $93,370 
Other liabilities122 3,695 
Total liabilities of disposal group held for sale (1)
$122 $97,065 

(1)Assets and liabilities of the disposal group held for sale are in Consolidated VIEs because the Company is the primary beneficiary.
(2)During the year ended December 31, 2024, two entities in which the Company held joint venture equity investments entered into debt restructuring agreements with the respective senior lender for their mortgages payable. As part of the agreements, a portion of interest payments were deferred until the maturity date. The restructurings did not result in a change in the carrying amount of the mortgages payable and no gains were recorded. The Company subsequently sold its ownership interests in these entities, which resulted in the de-consolidation of the mortgages payable subject to the debt restructuring agreements as of December 31, 2024.

Also included in the disposal group held for sale are non-controlling interests in Consolidated VIEs in the amount of $0.6 million and $2.0 million as of December 31, 2025 and 2024, respectively.
The following table presents a summary of activity in disposal group held for sale for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,
202520242023
Multi-family apartment community sales by Consolidated VIEs
Total gross proceeds
$108,550 $56,350 $219,170 
Total repayment of related mortgages payable
$89,570 $31,809 $173,605 
Total net gains on sale (1)
$461 $11,373 $5,997 
Total losses on extinguishment of debt (1)
$448 $1,602 $1,965 
Total net gains attributable to non-controlling interests
$1 $1,060 $2,234 
Total net gains attributable to Company's common shareholders
$11 $8,711 $1,700 
Sales of the Company's ownership interests in joint venture equity investments
Total gain on de-consolidation of Consolidated VIEs (1)
$— $5,615 $— 
Reclassification to disposal group held for sale
Total impairment loss on reclassification to disposal group held for sale (2)
$— $3,726 $— 
Reclassification from disposal group held for sale
Total loss on reclassification from disposal group held for sale
$— $14,636 $16,163 

(1)Included in other income in the accompanying consolidated statements of operations.
(2)Included in impairment of real estate in the accompanying consolidated statements of operations.

Real estate, net included in assets of disposal group held for sale was recorded at the lower of the net carrying amount of the assets or the estimated fair value, net of selling costs. Fair value for real estate was based upon either negotiated sale prices less anticipated selling costs or a discounted cash flow analysis using property financial information and assumptions regarding market rent, revenue and expense growth, capitalization rates and return rates. The following table presents net impairment losses recognized on real estate, net in the disposal group held for sale, inclusive of losses recognized upon transfer into disposal group held for sale, during the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):
For the Years Ended December 31,
202520242023
Impairment of real estate in disposal group held for sale (1)
$7,180 $28,180 $89,548 

(1)Included in impairment of real estate in the accompanying consolidated statements of operations.

See Note 17 for descriptions of valuation methodologies utilized for other classes of assets and liabilities of disposal group held for sale.

The following table presents the pretax losses of the disposal group held for sale for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,
202520242023
Pretax loss of disposal group held for sale$(7,057)$(63,552)$(127,474)
Pretax loss of disposal group attributable to non-controlling interest in Consolidated VIEs496 6,712 11,870 
Pretax loss of disposal group attributable to Company's common stockholders$(6,561)$(56,840)$(115,604)