Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 07, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38010 | |
Entity Registrant Name | CLIPPER REALTY INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 47-4579660 | |
Entity Address, Address Line One | 4611 12th Avenue, Suite 1L | |
Entity Address, City or Town | Brooklyn | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11219 | |
City Area Code | 718 | |
Local Phone Number | 438-2804 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CLPR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 16,077,290 | |
Entity Central Index Key | 0001649096 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Land and improvements | $ 571,988 | $ 571,988 |
Building and improvements | 729,027 | 726,273 |
Tenant improvements | 3,366 | 3,366 |
Furniture, fixtures and equipment | 13,515 | 13,278 |
Real estate under development | 105,231 | 87,285 |
Total investment in real estate | 1,423,127 | 1,402,190 |
Accumulated depreciation | (220,958) | (213,606) |
Investment in real estate, net | 1,202,169 | 1,188,584 |
Cash and cash equivalents | 21,882 | 22,163 |
Restricted cash | 18,315 | 14,062 |
Tenant and other receivables, net of allowance for doubtful accounts of $184 and $321, respectively | 4,836 | 5,181 |
Deferred rent | 2,311 | 2,359 |
Deferred costs and intangible assets, net | 6,049 | 6,127 |
Prepaid expenses and other assets | 8,381 | 10,854 |
TOTAL ASSETS | 1,263,943 | 1,249,330 |
Liabilities: | ||
Notes payable, net of unamortized loan costs of $14,578 and $9,650, respectively | 1,226,688 | 1,205,624 |
Accounts payable and accrued liabilities | 15,579 | 20,994 |
Security deposits | 8,894 | 8,765 |
Other liabilities | 12,048 | 6,712 |
TOTAL LIABILITIES | 1,263,209 | 1,242,095 |
Equity: | ||
Preferred stock, $0.01 par value; 100,000 shares authorized (including 140 shares of 12.5% Series A cumulative non-voting preferred stock), zero shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 500,000,000 shares authorized,16,063,228 and 16,063,228 shares issued and outstanding, respectively | 160 | 160 |
Additional paid-in-capital | 89,555 | 89,483 |
Accumulated deficit | (89,436) | (86,899) |
Total stockholders’ equity | 279 | 2,744 |
Non-controlling interests | 455 | 4,491 |
TOTAL EQUITY | 734 | 7,235 |
TOTAL LIABILITIES AND EQUITY | $ 1,263,943 | $ 1,249,330 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Allowance for doubtful accounts | $ 235 | $ 234 |
Unamortized loan costs | $ 12,308 | $ 13,405 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common Stock, Shares, Outstanding (in shares) | 16,063,228 | 16,063,228 |
Common Stock, Shares, Issued (in shares) | 16,063,228 | 16,063,228 |
Series A Cumulative Non-Voting Preferred Stock [Member] | ||
Preferred stock, shares authorized (in shares) | 140 | 140 |
Preferred stock, dividend rate, percentage | 12.50% | 12.50% |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUES | ||
TOTAL REVENUES | $ 35,760 | $ 33,667 |
OPERATING EXPENSES | ||
Property operating expenses | 8,622 | 8,099 |
Real estate taxes and insurance | 7,136 | 8,536 |
General and administrative | 3,551 | 3,293 |
Depreciation and amortization | 7,379 | 6,825 |
TOTAL OPERATING EXPENSES | 26,688 | 26,753 |
INCOME FROM OPERATIONS | 9,072 | 6,914 |
Interest expense, net | (11,738) | (10,135) |
Loss on extinguishment of debt | 0 | (3,868) |
Net loss | (2,666) | (7,089) |
Net loss attributable to non-controlling interests | 1,655 | 4,402 |
Net loss attributable to common stockholders | $ (1,011) | $ (2,687) |
Basic and diluted net loss per share (in dollars per share) | $ (0.09) | $ (0.19) |
Residential Rental [Member] | ||
REVENUES | ||
TOTAL REVENUES | $ 26,106 | $ 23,940 |
Commercial Real Estate [Member] | ||
REVENUES | ||
TOTAL REVENUES | $ 9,654 | $ 9,727 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2022 | 16,063,228 | |||||
Balance at Dec. 31, 2022 | $ 160 | $ 88,829 | $ (74,895) | $ 14,094 | $ 23,085 | $ 37,179 |
Amortization of LTIP grants | 0 | 0 | 0 | 0 | 648 | 648 |
Dividends and distributions | 0 | 0 | (1,526) | (1,526) | (4,348) | |
Dividends and distributions | (2,822) | |||||
Net loss | 0 | 0 | (2,687) | (2,687) | (4,402) | (7,089) |
Reallocation of noncontrolling interests | $ 0 | 123 | 0 | 123 | (123) | 0 |
Balance (in shares) at Mar. 31, 2023 | 16,063,228 | |||||
Balance at Mar. 31, 2023 | $ 160 | 88,952 | (79,108) | 10,004 | 16,386 | 26,390 |
Balance (in shares) at Dec. 31, 2023 | 16,063,228 | |||||
Balance at Dec. 31, 2023 | $ 160 | 89,483 | (86,899) | 2,744 | 4,491 | 7,235 |
Amortization of LTIP grants | 561 | 561 | ||||
Dividends and distributions | 0 | 0 | (1,526) | (1,526) | (4,396) | |
Dividends and distributions | (2,870) | |||||
Net loss | 0 | 0 | (1,011) | (1,011) | (1,655) | (2,666) |
Reallocation of noncontrolling interests | $ 0 | 72 | 0 | 72 | (72) | 0 |
Balance (in shares) at Mar. 31, 2024 | 16,063,228 | |||||
Balance at Mar. 31, 2024 | $ 160 | $ 89,555 | $ (89,436) | $ 279 | $ 455 | $ 734 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (2,666) | $ (7,089) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 7,352 | 6,799 |
Amortization of deferred financing costs | 530 | 313 |
Amortization of deferred costs and intangible assets | 147 | 146 |
Amortization of above- and below-market leases | 0 | (9) |
Loss on extinguishment of debt | 0 | 3,868 |
Deferred rent | 48 | 435 |
Stock-based compensation | 561 | 648 |
Bad debt expense | 1 | (121) |
Changes in operating assets and liabilities: | ||
Tenant and other receivables | 344 | 358 |
Prepaid expenses, other assets and deferred costs | 2,403 | 2,941 |
Accounts payable and accrued liabilities | (3,540) | (1,801) |
Security deposits | 130 | 290 |
Other liabilities | 942 | 643 |
Net cash provided by operating activities | 6,252 | 7,421 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to land, buildings, and improvements | (22,247) | (12,494) |
Net cash used in investing activities | (22,247) | (12,494) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments of mortgage notes | (493) | (46,301) |
Proceeds from mortgage notes | 20,460 | 62,330 |
Loan issuance and extinguishment costs | 0 | (3,798) |
Net cash provided by financing activities | 19,967 | 12,231 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 3,972 | 7,158 |
Cash and cash equivalents and restricted cash - beginning of period | 36,225 | 30,666 |
Cash and cash equivalents and restricted cash - end of period | 40,197 | 37,824 |
Cash and cash equivalents and restricted cash – beginning of period: | ||
Cash and cash equivalents | 22,163 | 18,152 |
Restricted cash | 14,062 | 12,514 |
Cash and cash equivalents and restricted cash - beginning of period | 36,225 | 30,666 |
Cash and cash equivalents | 21,882 | 18,801 |
Restricted cash | 18,315 | 19,023 |
Restricted cash | 18,315 | 19,023 |
Cash and cash equivalents and restricted cash - end of period | 40,197 | 37,824 |
Supplemental cash flow information: | ||
Cash paid for interest, net of capitalized interest of $3,855 and $3,775 in 2023 and 2022, respectively | 11,855 | 9,863 |
Non-cash interest capitalized to real estate under development | 566 | 27 |
Additions to investment in real estate included in accounts payable and accrued liabilities | 7,609 | 3,527 |
Dividend declared, paid April 4, 2024 and April 5, 2023, respectively | $ 4,396 | $ 4,348 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest Paid, Capitalized, Investing Activities | $ 1,859 | $ 2,382 |
Note 1 - Organization
Note 1 - Organization | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization As of March 31, 2024, the properties owned by the Company consist of the following (collectively, the “Properties”): • Tribeca House in Manhattan, comprising two • Flatbush Gardens in Brooklyn, a 59-building residential housing complex with 2,494 rentable units and approximately 1,749,000 square feet of residential rental GLA; • 141 Livingston Street in Brooklyn, a 15-story office building with approximately 216,000 square feet of GLA; • 250 Livingston Street in Brooklyn, a 12-story office and residential building with approximately 370,000 square feet of GLA (fully remeasured); • Aspen in Manhattan, a 7-story building containing residential and retail space with approximately 166,000 square feet of residential rental GLA and approximately 21,000 square feet of retail rental GLA; • Clover House in Brooklyn, a 11-story residential building with approximately 102,000 square feet of residential rental GLA; • 10 West 65 • 1010 Pacific Street in Brooklyn, 9-story residential building with approximately 119,000 square feet of residential rental GLA; and • the Dean Street property in Brooklyn, which the Company plans to redevelop as a 9 -story residential building with approximately 160,000 square feet of residential rental GLA and approximately 9,000 square feet of retail rental GLA. The operations of Clipper Realty Inc. and its consolidated subsidiaries are carried on primarily through Clipper Realty L.P., the Company’s operating partnership subsidiary (the “Operating Partnership”). The Company has elected to be taxed as a Real Estate Investment Trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code (the “Code”). The Company is the sole general partner of the Operating Partnership and the Operating Partnership is the sole managing member of the limited liability companies (the “LLCs”) that comprised the predecessor of the Company (the “Predecessor”). At March 31, 2024, the Company’s interest, through the Operating Partnership, in the LLCs that own the properties generally entitles it to 37.9% of the aggregate cash distributions from, and the profits and losses of, the LLCs. The Company determined that the Operating Partnership and the LLCs are variable interest entities (“VIEs”) and that the Company was the primary beneficiary. The assets and liabilities of these VIEs represented substantially all of the Company’s assets and liabilities. |
Note 2- Significant Accounting
Note 2- Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Significant Accounting Policies Segments At March 31, 2024, the Company had two Basis of Consolidation The accompanying consolidated financial statements of the Company are prepared in accordance with GAAP. The effect of all intercompany balances has been eliminated. The consolidated financial statements include the accounts of all entities in which the Company has a controlling interest. The ownership interests of other investors in these entities are recorded as non-controlling interests. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from these estimates. Investment in Real Estate Real estate assets held for investment are carried at historical cost and consist of land, buildings and improvements, furniture, fixtures and equipment. Expenditures for ordinary repair and maintenance costs are charged to expense as incurred. Expenditures for improvements, renovations, and replacements of real estate assets are capitalized and depreciated over their estimated useful lives if the expenditures qualify as betterment or the life of the related asset will be substantially extended beyond the original life expectancy. In accordance with ASU 2018-01, "Business Combinations – Clarifying the Definition of a Business,” the Company evaluates each acquisition of real estate or in-substance real estate to determine if the integrated set of assets and activities acquired meets the definition of a business and needs to be accounted for as a business combination. If either of the following criteria is met, the integrated set of assets and activities acquired would not qualify as a business: • Substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group of similar identifiable assets; or • The integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., revenue generated before and after the transaction). An acquired process is considered substantive if: • The process includes an organized workforce (or includes an acquired contract that provides access to an organized workforce) that is skilled, knowledgeable and experienced in performing the process: • The process cannot be replaced without significant cost, effort or delay; or • The process is considered unique or scarce. Generally, the Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land, buildings and related intangible assets) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. Upon acquisition of real estate, the Company assesses the fair values of acquired tangible and intangible assets including land, buildings, tenant improvements, above-market and below-market leases, in-place leases and any other identified intangible assets and assumed liabilities. The Company allocates the purchase price to the assets acquired and liabilities assumed based on their fair values. In estimating fair value of tangible and intangible assets acquired, the Company assesses and considers fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates, estimates of replacement costs, net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records acquired above-market and below-market lease values initially based on the present value, using a discount rate which reflects the risks associated with the leases acquired based on the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed renewal options for the below-market leases. Other intangible assets acquired include amounts for in-place lease values and tenant relationship values (if any) that are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A property’s value is impaired if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, a write-down is recorded and measured by the amount of the difference between the carrying value of the asset and the fair value of the asset. In the event that the Company obtains proceeds through an insurance policy due to impairment, the proceeds are offset against the write-down in calculating gain/loss on disposal of assets. Management of the Company does not believe that any of its properties within the portfolio are impaired as of March 31, 2024. For long-lived assets to be disposed of, impairment losses are recognized when the fair value of the assets less estimated cost to sell is less than the carrying value of the assets. Properties classified as real estate held-for-sale generally represent properties that are actively marketed or contracted for sale with closing expected to occur within the next twelve months. Real estate held-for-sale is carried at the lower of cost, net of accumulated depreciation, or fair value less cost to sell, determined on an asset-by-asset basis. Expenditures for ordinary repair and maintenance costs on held-for-sale properties are charged to expense as incurred. Expenditures for improvements, renovations and replacements related to held-for-sale properties are capitalized at cost. Depreciation is not recorded on real estate held-for-sale. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balances of the related intangibles are written off. The tenant improvements and origination costs are amortized to expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: Years Building and improvements 10 – 44 Tenant improvements Shorter of useful life or lease term Furniture, fixtures and equipment 3 – 15 The capitalized above-market lease values are amortized as a reduction to base rental revenue over the remaining terms of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed rate renewal options of the respective leases. The value of in-place leases is amortized to expense over the remaining initial terms of the respective leases. Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand and in banks, plus all short-term investments with a maturity of three months or less when purchased. The Company maintains some of its cash in bank deposit accounts, which, at times, may exceed the federally insured limit. No losses have been experienced related to such accounts. Restricted Cash Restricted cash generally consists of escrows for future real estate taxes and insurance expenditures, repairs, capital improvements, loan reserves and security deposits. Tenant and Other Receivables and Allowance for Doubtful Accounts Tenant and other receivables are comprised of amounts due for monthly rents and other charges less allowance for doubtful accounts. In accordance with Accounting Standards Codification (“ASC”) 842 “Leases,” the Company performed a detailed review of amounts due from tenants to determine if accounts receivable balances and future lease payments were probable of collection, wrote off receivables not probable of collection and recorded a general reserve against revenues for receivables probable of collection for which a loss can be reasonably estimated. If management determines that the tenant receivable is not probable of collection it is written off against revenues. In addition, the Company records a general reserve under ASC 450. Deferred Costs Deferred lease costs consist of fees incurred to initiate and renew operating leases. Lease costs are being amortized using the straight-line method over the terms of the respective leases. Deferred financing costs represent commitment fees, legal and other third-party costs associated with obtaining financing. These costs are amortized over the term of the financing and are recorded in interest expense in the consolidated statements of operations. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financing transactions which do not close are expensed in the period the financing transaction is terminated. Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) adjusted for changes in unrealized gains and losses, reported in equity, for financial instruments required to be reported at fair value under GAAP. For the three months ended March 31, 2024 and 2023, the Company did not own any financial instruments for which the change in value was not reported in net income (loss); accordingly, its comprehensive income (loss) was its net income (loss) as presented in the consolidated statements of operations. Revenue Recognition As mentioned above under Tenant and Other Receivables and Allowance for Doubtful Accounts For the three months ended March 31, 2024 and 2023, the Company has charged revenue in the amount of $787 and $1,566, respectively, for residential receivables not deemed probably of collection and recognized revenue of $115 and $717, respectively, for a reassessment of collectability of residential receivables previously not deemed probably of collection. In accordance with the provisions of ASC 842, rental revenue for commercial leases is recognized on a straight-line basis over the terms of the respective leases. Deferred rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Rental income attributable to residential leases and parking is recognized as earned, which is not materially different from the straight-line basis. Leases entered by residents for apartment units are generally for one-year terms, renewable upon consent of both parties on an annual or monthly basis. Reimbursements for operating expenses due from tenants pursuant to their lease agreements are recognized as revenue in the period the applicable expenses are incurred. These costs generally include real estate taxes, utilities, insurance, common area maintenance costs and other recoverable costs and are recorded as part of commercial rental income in the condensed consolidated statements of operations. Stock-based Compensation The Company accounts for stock-based compensation pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, “Compensation — Stock Compensation.” As such, all equity-based awards are reflected as compensation expense in the Company’s consolidated statements of operations over their vesting period based on the fair value at the date of grant. In the event of a forfeiture, the previously recognized expense would be reversed. As of March 31, 2024, and December 31, 2023, there were 3,893,678 and 3,391,904 long-term incentive plan (“LTIP”) units outstanding, respectively, with a weighted average grant date fair value of $8.28 and $8.79 per unit, respectively. As of March 31, 2024, and December 31, 2023, there was $11.6 million and $10.2 million, respectively, of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under share incentive plans. As of March 31, 2024, the weighted-average period over which the unrecognized compensation expense will be recorded is approximately four In March 2024, the Company granted employees and non-employee directors 320,172 and 181,602 LTIP units, respectively, with a weighted-average grant date value of $4.90 per unit. The grants vesting period range from up to one Transaction Pursuit Costs Transaction pursuit costs primarily reflect costs incurred for abandoned acquisition, disposition or other transaction pursuits. Income Taxes The Company elected to be taxed and to operate in a manner that will allow it to qualify as a REIT under the Code. To qualify as a REIT, the Company is required to distribute dividends equal to at least 90% of the REIT taxable income (computed without regard to the dividends paid deduction and net capital gains) to its stockholders, and meet the various other requirements imposed by the Code relating to matters such as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided the Company qualifies for taxation as a REIT, it is generally not subject to U.S. federal corporate-level income tax on the earnings distributed currently to its stockholders. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to U.S. federal and state income tax on its taxable income at regular corporate tax rates and any applicable alternative minimum tax. In addition, the Company may not be able to re-elect as a REIT for the four subsequent taxable years. The entities comprising the Predecessor are limited liability companies and are treated as pass-through entities for income tax purposes. Accordingly, no In accordance with FASB ASC Topic 740, the Company believes that it has appropriate support for the income tax positions taken and, as such, does not have any uncertain tax positions that, if successfully challenged, could result in a material impact on its financial position or results of operations. The prior three years’ income tax returns are subject to review by the Internal Revenue Service. Fair Value Measurements Refer to Note 7, “Fair Value of Financial Instruments”. Derivative Financial Instruments FASB derivative and hedging guidance establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. As required by FASB guidance, the Company records all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecast transactions, are considered cash flow hedges. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income (loss) (outside of earnings) and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in the fair value or cash flows of the derivative hedging instrument with the changes in the fair value or cash flows of the designated hedged item or transaction. For derivatives not designated as hedges, changes in fair value would be recognized in earnings. As of March 31, 2024 and December 31, 2023, the Company has no derivatives for which it applies hedge accounting. Loss Per Share Basic and diluted net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding. As of March 31, 2024 and 2023, the Company had unvested LTIP units which provide for non-forfeitable rights to dividend-equivalent payments. Accordingly, these unvested LTIP units are considered participating securities and are included in the computation of basic and diluted net loss per share pursuant to the two-class method. The Company did not The effect of the conversion of the 26,317 Class B LLC units outstanding is not reflected in the computation of basic and diluted net loss per share, as the effect would be anti-dilutive. The net loss allocable to such units is reflected as non-controlling interests in the accompanying consolidated financial statements. The following table sets forth the computation of basic and diluted net loss per share for the periods indicated (unaudited): Three Months Ended March 31, (in thousands, except per share amounts) 2024 2023 Numerator Net loss attributable to common stockholders $ (1,011 ) $ (2,687 ) Less: income attributable to participating securities (370 ) (322 ) Subtotal $ (1,381 ) $ (3,009 ) Denominator Weighted-average common shares outstanding 16,063 16,063 Basic and diluted net loss per share attributable to common stockholders $ (0.09 ) $ (0.19 ) Recently Issued Pronouncements On August 23, 2023, the FASB issued ASU 2023-05 that will require a joint venture, upon formation, to measure its assets and liabilities at fair value in its standalone financial statements. A joint venture will recognize the difference between the fair value of its equity and the fair value of its identifiable assets and liabilities as goodwill (or an equity adjustment, if negative) using the business combination accounting guidance regardless of whether the net assets meet the definition of a business. The new accounting standard is intended to reduce diversity in practice. This ASU will apply to joint ventures that meet the definition of a corporate joint venture under GAAP, thus limiting its scope to joint ventures not controlled and therefore not consolidated by any joint venture investor. We currently have no material joint ventures and as such do not expect it to have a material impact on our consolidated financial statements. This accounting standard will become effective for joint ventures with a formation date on or after January 1, 2025, with early adoption permitted. We expect to adopt this ASU on January 1, 2025. On November 27, 2023, the FASB issued ASU 2023-07 to require the disclosure of segment expenses if they are (i) significant to the segment, (ii) regularly provided to the chief operating decision maker (“CODM”), and (iii) included in each reported measure of a segment’s profit or loss. Public entities will be required to provide this disclosure quarterly. In addition, this ASU requires an annual disclosure of the CODM’s title and a description of how the CODM uses the segment’s profit/loss measure to assess segment performance and to allocate resources. Compliance with these and certain other disclosure requirements will be required for our annual report on Form 10-K for the year 2024, and for subsequent quarterly and annual reports, with early adoption permitted. The Company is currently evaluating the impact of this standard on our current disclosures. |
Note 3 - Deferred Costs and Int
Note 3 - Deferred Costs and Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Deferred Costs and Intangible Assets Disclosure [Text Block] | 3. Deferred Costs and Intangible Assets Deferred costs and intangible assets consist of the following: March 31, December 31, (unaudited) Deferred costs $ 348 $ 348 Lease origination costs 1,543 1,474 In-place leases 428 428 Real estate tax abatements 9,142 9,142 Total deferred costs and intangible assets 11,461 11,392 Less accumulated amortization (5,412 ) (5,265 ) Total deferred costs and intangible assets, net $ 6,049 $ 6,127 Amortization of deferred costs, lease origination costs and in-place lease intangible assets was $26 and $26 for the three months ended March 31, 2024 and 2023, respectively; Amortization of real estate tax abatements of $120 and $120 for the three months ended March 31, 2024 and 2023, respectively is included in real estate taxes and insurance in the consolidated statements of operations. Deferred costs and intangible assets as of March 31, 2024, amortize in future years as follows: 2024 (Remainder) $ 440 2025 569 2026 546 2027 534 2028 520 Thereafter 3,440 Total $ 6,049 |
Note 4 - Notes Payable
Note 4 - Notes Payable | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | 4. Notes Payable The mortgages, loans and mezzanine notes payable collateralized by the properties, or the Company’s interest in the entities that own the properties and assignment of leases, are as follows: Property Maturity Interest Rate March 31, December 31, Flatbush Gardens, Brooklyn, NY (a) 6/1/2032 3.125 % $ 329,000 $ 329,000 250 Livingston Street, Brooklyn, NY (b) 6/6/2029 3.63 % 125,000 125,000 141 Livingston Street, Brooklyn, NY (c) 3/6/2031 3.21 % 100,000 100,000 Tribeca House, Manhattan, NY (d) 3/6/2028 4.506 % 360,000 360,000 Aspen, Manhattan, NY (e) 7/1/2028 3.68 % 60,606 61,004 Clover House, Brooklyn, NY (f) 12/1/2029 3.53 % 82,000 82,000 10 West 65th Street, Manhattan, NY (g) 11/1/2027 SOFR % 31,741 31,836 1010 Pacific Street, Brooklyn, NY (h) 9/15/2025 5.55 % 60,000 60,000 1010 Pacific Street, Brooklyn, NY (h) 9/15/2025 6.37 % 20,000 20,000 Dean Street, Brooklyn, NY (i) 8/10/2026 SOFR % 62,026 42,909 Dean Street, Brooklyn, NY (i) 8/10/2026 SOFR % 8,623 7,280 Total debt $ 1,238,996 $ 1,219,029 Unamortized debt issuance costs (12,308 ) (13,405 ) Total debt, net of unamortized debt issuance costs $ 1,226,688 $ 1,205,624 (a) The $329,000 mortgage note agreement with New York Community Bank (“NYCB”), entered into on May 8, 2020, matures on June 1, 2032, and bears interest at 3.125% through May 2027 and thereafter at the prime rate plus 2.75%, subject to an option to fix the rate. The note requires interest-only payments through May 2027, and monthly principal and interest payments thereafter based on a 30-year amortization schedule. The Company has the option to prepay all (but not less than all) of the unpaid balance of the note prior to the maturity date, subject to certain prepayment premiums, as defined. (b) The $125,000 mortgage note agreement with Citi Real Estate Funding Inc., entered into on May 31, 2019, matures on June 6, 2029, bears interest at 3.63% and requires interest-only payments for the entire term. The Company has the option to prepay all (but not less than all) of the unpaid balance of the note within three In connection with the termination of the City of New York 342,496 square foot lease, pursuant to the terms of the Loan Agreement, the Company expects to establish a cash management account for the benefit of the lender into which the Company will be obligated to deposit all revenue generated by the building. All amounts remaining in such cash management account after the lender’s allocations set forth in the loan agreement will be disbursed to the Company once the tenant cure conditions are satisfied under the loan agreement. (c), The $100,000 mortgage note agreement with Citi Real Estate Funding Inc., entered into on February 18, 2021 matures on March 6, 2031, bears interest at 3.21% and requires interest-only payments for the entire term. The Company has the option to prepay all (but not less than all) of the unpaid balance of the note within three months of maturity, without a prepayment premium. In accordance with the terms of the mortgage note, if the City of New York does not notify the Company prior to June 27, 2024, of a renewal term of no less than five years, the Company will be required to either fund an escrow account in the amount of $10,000 payable in equal monthly payments over 18 months or deliver to the lender a letter of credit in the amount of $10,000. (d) The $360,000 loan with Deutsche Bank, entered into on February 21, 2018, matures on March 6, 2028, bears interest at 4.506% and requires interest-only payments for the entire term. The Company has the option to prepay all (but not less than all) of the unpaid balance of the loan prior to the maturity date, subject to a prepayment premium if it occurs prior to December 6, 2027. (e) The $70,000 mortgage note agreement with Capital One Multifamily Finance LLC matures on July 1, 2028, and bears interest at 3.68%. The note required interest-only payments through July 2017, and monthly principal and interest payments of $321 thereafter based on a 30-year amortization schedule. The Company has the option to prepay the note prior to the maturity date, subject to a prepayment premium. (f) The $82,000 mortgage note agreement with MetLife Investment Management, entered into on November 8, 2019, matures on December 1, 2029, bears interest at 3.53% and requires interest-only payments for the entire term. The Company has the option, commencing on January 1, 2024, to prepay the note prior to the maturity date, subject to a prepayment premium if it occurs prior to September 2, 2029. (g) The $31,700 mortgage note agreement with NYCB entered into in connection with the acquisition of the property matures on November 1, 2027. Through October 2022 the Company paid a fixed interest rate of 3.375% and thereafter was scheduled to pay interest at the prime rate plus 2.75%, subject to an option to fix the rate. On August 26, 2022, the Company and NYCB amended the note to replace prime plus 2.75% rate with SOFR plus 2.5% ( 7.875 (h) On December 24, 2019, the Company entered into a $18,600 mortgage note agreement with CIT Bank, N.A., related to the 1010 Pacific Street acquisition. The Company also entered into a pre-development bridge loan secured by the property with the same lender to provide up to $2,987 for eligible pre-development and carrying costs. The notes were scheduled to mature on June 24, 2021, required interest-only payments and bore interest at one-month LIBOR (with a floor of 1.25 On August 10, 2021, the Company refinanced the above 1010 Pacific Street loan with a group of loans with AIG Asset Management (U.S.), LLC providing for maximum borrowings of $52,500 to develop the property. The notes have a 36 month term, bear interest at 30 day LIBOR plus 3.60% (with a floor of 4.1%). The notes were scheduled to mature on September 1, 2024 and could have been extended until September 1, 2026. The Company could have prepaid the unpaid balance of the note within five months of maturity without penalty. On February 9, 2023, the Company refinanced this construction loan with a mortgage loan with Valley National Bank which provided for maximum borrowings of $80,000. The loan provided initial funding of $60,000 and a further $20,000 subject to achievement of certain financial targets. The loan has a term of five years and an initial annual interest rate of 5.7% subject to reduction by up to 25 basis points upon achievement of certain financial targets (during the quarter ended June 30, 2023, the Company achieved the applicable financial target, and the interest rate was reduced to 5.55%). The interest rate on subsequent fundings will be fixed at the time of any funding. The loan requires interest-only payments for the first two years and principal and interest thereafter based on a 30-year amortization schedule. The Company has the option to prepay in full, or in part, the unpaid balance of the note prior to the maturity date. Prior to the second anniversary of the date of the note prepayment is subject to certain prepayment premiums, as defined. After the second anniversary of the date of the note the prepayment is not subject to a prepayment premium. On September 15, 2023, the Company borrowed an additional $20,000 from Valley National Bank. The additional borrowing has a term of twenty-four months and an annual interest rate of 6.37%. The loan is interest only subject to the maintenance of certain financial targets after the first 16 months of the term. In conjunction with the additional borrowing, the Company and the bank agreed to amend the expiration date of the initial $60,000 to expire at the same time as the additional borrowing. No change was made to the interest rate on the initial borrowing. In conjunction with the refinancing the Company incurred $3,868 of loan extinguishment costs related to prepayment penalties, writing off unamortized deferred financed costs of the previous loan and other fees. These costs are included in the consolidated statement of operations for the three-month period ended March 31, 2023. (i) On December 22, 2021, the Company entered into a $30,000 mortgage note agreement with Bank Leumi, N.A related to the Dean Street acquisition. The notes original maturity was December 22, 2022 and was subsequently extended to September 22, 2023. The note required interest-only payments and bears interest at the prime rate (with a floor of 3.25 On August 10, 2023, the Company refinanced its $37,000 mortgage on its Dean Street development with a senior construction loan (“Senior Loan”) with Valley National Bank that permits borrowings up to $115,000 and a mezzanine loan (the “Mezzanine Loan”) with BADF 953 Dean Street Lender LLC that permits borrowings up to $8,000. The Senior Loan allows maximum borrowings of $115,000 for a 30-month term, has two 6-month extension options, and bears interest at 1-Month Term SOFR plus 4.00%, with an all-in floor of 5.50% (9.33% at March 31, 2024). The Senior Loan consists of a land loan, funded at closing to refinance the existing loan totaling $36,985, a construction loan of up to $62,400 and a project loan of up to $15,600. The Company has provided a 30% payment guarantee of outstanding borrowings among other standard indemnities. As of March 31,2024, the Company has drawn $19,574 from the construction loan and $5,467 from the project loan. The Mezzanine Loan allows maximum borrowings of $8,000 for a 30-month term, have two 6-month extension options, and bears interest at 1-Month Term SOFR plus 10%, with an all-in floor of 13% (15.33% at March 31, 2024). Interest shall accrue on the principal, is compounded monthly and is due at the end of the term of the loan. At closing, $4,500 was funded to cover closing costs incurred on the construction loans. As of March 31,2024, the remaining $3,500 was drawn for ongoing construction costs. During the three months ended March 31, 2024, the Company incurred $461 in interest and is included in the balance of the Notes Payable in the Consolidated Balance Sheet. On August 10, 2023 the Company entered into a $5,000 corporate line of credit with Valley National Bank. The line of credit bears interest of Prime + 1.5%. The Company has not The Company has provided a limited guaranty for the mortgage notes at several of its properties. The Company’s loan agreements contain customary representations, covenants and events of default. Certain loan agreements require the Company to comply with affirmative and negative covenants, including the maintenance of debt service coverage and debt yield ratios. In the event that the Company is not compliant, certain lenders may require cash sweeps of rent until the conditions are cured. The Company is not in default on any of its loan agreements. The following table summarizes principal payment requirements under the terms of the mortgage notes as of March 31, 2024: 2024 (Remainder) $ 1,500 2025 82,092 2026 72,839 2027 33,461 2028 416,554 Thereafter 632,550 Total $ 1,238,996 |
Note 5 - Rental Income Under Op
Note 5 - Rental Income Under Operating Leases | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Lessor, Operating Leases [Text Block] | 5. Rental Income under Operating Leases The Company’s commercial properties are leased to commercial tenants under operating leases with fixed terms of varying lengths. As of March 31, 2024, the minimum future cash rents receivable (excluding tenant reimbursements for operating expenses) under non-cancelable operating leases for the commercial tenants in each of the next five years and thereafter are as follows: 2024 (Remainder) $ 23,041 2025 25,119 2026 4,854 2027 4,230 2028 3,143 Thereafter 20,449 Total $ 80,836 The Company has commercial leases with the City of New York that comprised approximately 22% and 24% of total revenues for the three months ended March 31, 2024 and 2023, respectively. As of February 23, 2024, the City of New York notified the Company of its intention to terminate its lease for 342,496 square feet of office space located at 240-250 Livingston Street effective August 23, 2025. The Lease generally provides for rent payments in the amount of $15,400 per annum. |
Note 6 - Fair Value of Financia
Note 6 - Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 6. Fair Value of Financial Instruments GAAP requires the measurement of certain financial instruments at fair value on a recurring basis. In addition, GAAP requires the measure of other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying ‐‐‐value of impaired real estate and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that require inputs that are both significant to the fair value measurement and unobservable. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establishes a fair value by assigning weights to the various valuation sources. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The financial assets and liabilities in the consolidated balance sheets include cash and cash equivalents, restricted cash, receivables, prepaid expenses, accounts payable and accrued liabilities, security deposits and notes payable. The carrying amount of cash and cash equivalents, restricted cash, receivables, prepaid expenses, accounts payable and accrued liabilities, and security deposits reported in the consolidated balance sheets approximates fair value due to the short-term nature of these instruments. The fair value of notes payable, which are classified as Level 2, is estimated by discounting the contractual cash flows of each debt instrument to their present value using adjusted market interest rates. The carrying amount and estimated fair value of the notes payable are as follows: March 31, December 31, (unaudited) Carrying amount (excluding unamortized debt issuance costs) $ 1,238,996 $ 1,219,029 Estimated fair value $ 1,167,092 $ 1,160,393 |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 7. Commitments and Contingencies Legal On July 3, 2017, the Supreme Court of the State of New York (the “Court”) ruled in favor of 41 present or former tenants of apartment units at the Company’s buildings located at 50 Murray Street and 53 Park Place in Manhattan, New York (the Tribeca House property), who brought an action (the “Kuzmich” case) against the Company alleging that they were subject to applicable rent stabilization laws with the result that rental payments charged by the Company exceeded amounts permitted under these laws because the buildings were receiving certain tax abatements under Real Property Tax Law (“RPTL”) 421-g. The Court also awarded the plaintiffs- tenants their attorney’s fees and costs. After various court proceedings and discussions from 2018-2022, on March 4, 2022 the court issued a ruling, finalized on May 9, 2022, on the rent overcharges to which the plaintiffs are entitled. While the court ruled that the overcharges to which the plaintiffs are entitled total $1.2 million, the court agreed with the Company’s legal arguments that rendered the overcharge liability lower than it could have been, and therefore the Company did not appeal the ruling. On June 23, 2022, the court ruled that the plaintiffs are entitled to attorneys’ fees incurred through February 28, 2022, in the amount of $0.4 million. The only remaining outstanding issues of which the Company is aware relate to the proper form of rent-stabilized renewal leases for the six plaintiffs who remain as tenants in the building. The parties are seeking judicial intervention to resolve this remaining issue. On July 17, 2023, a hearing was held at which the Judicial Hearing Officer (“JHO”) determined five (5) of the tenant’s lease renewal amounts, term and form. The amount of the lease renewal concerning the sixth plaintiff was made on August 28, 2023. At this time the Company is awaiting the execution and return of all the lease renewals. On November 18, 2019, the same law firm which filed the Kuzmich case filed a second action involving a separate group of 26 tenants (captioned Crowe et al v 50 Murray Street Acquisition LLC, Supreme Court, New York County, Index No. 161227/19), which action advances essentially the same claims as in Kuzmich. The Company’s deadline to answer or otherwise respond to the complaint in Crowe had been extended to June 30, 2020; on such date, the Company filed its answer to the complaint. Pursuant to the court’s rules, on July 16, 2020, the plaintiffs filed an amended complaint; the sole difference as compared to the initial complaint is that seven new plaintiffs-tenants were added to the caption; there were no substantive changes to the complaint’s allegations. On August 5, 2020, the Company filed its answer to the amended complaint. The case was placed on the court’s calendar and was next scheduled for a discovery conference on November 16, 2022. Counsel for the parties have been engaged in and are continuing settlement discussions. On November 16, 2022, the court held a compliance conference and ordered the plaintiffs to provide rent overcharge calculations in response to proposed calculations previously provided by the Company. On July 12, 2023, the court referred this matter to a JHO to determine the outstanding issues. A hearing before the JHO was held in September 2023 and at this time all parties are engaged in settlement discussions. On March 9, 2021, the same law firm which filed the Kuzmich and Crowe cases filed a third action involving another tenant (captioned Horn v 50Murray Street Acquisition LLC, Supreme Court, New York County, Index No. 152415/21), which action advances the same claims as in Kuzmich and Crowe. The Company filed its answer to the complaint on May 21, 2021. The parties are currently attempting to settle this matter before the same JHO as in the hearings for the Kuzmich and Crowe matters. As a result of the March 4 and May 9, 2022 decisions which established the probability and ability to reasonably compute amounts owed to tenants for all the cases, the Company recorded a charge for litigation settlement and other of $2.7million in the consolidated statements of operations during the year ended December 31, 2021 comprising rent overcharges, interest and legal costs of plaintiff’s counsel. The Company paid $2.3million to the plaintiffs related to the Kuzmich case during the year ended December 31, 2022 and $0.4 million related to the Crowe case during the nine month period ended September 30, 2023. In addition to the above, the Company is subject to certain legal proceedings and claims arising in connection with its business. Management believes, based in part upon consultation with legal counsel, that the ultimate resolution of all such claims will not have a material adverse effect on the Company’s consolidated results of operations, financial position or cash flows. The New York City Department of Citywide Administrative Services is currently engaged in an audit of the Company’s operating expense escalation charges for the period of June 2014 to December 2018. Based on the preliminary results of the audit the Company believes it has adequate reserves to cover any adverse conclusions. Commitments On June 29, 2023 the Company entered into the Article 11 Agreement. Under the Article 11 agreement, the Company has entered into a Housing Repair and Maintenance Letter Agreement (“HRMLA”) in which the Company has agreed to perform certain capital improvements to Flatbush Gardens over the next three years. The current estimate is that the costs of that work will be an amount up to $27 million. The Company expects those costs to be offset by the savings provided by property tax exemption and enhanced payments for tenants receiving government assistance. Through March 31, 2024 the Company spent approximately $2.9 million on capital improvements required under the HRMLA. The Company is obligated to provide parking availability through August 2025 under a lease with a tenant at the 250 Livingston Street property; the current cost to the Company is approximately $205 per year. Concentrations The Company’s properties are located in the Boroughs of Manhattan and Brooklyn in New York City, which exposes the Company to greater economic risks than if it owned a more geographically dispersed portfolio. The breakdown between commercial and residential revenue is as follows (unaudited): Commercial Residential Total Three months ended March 31, 2024 27 % 73 % 100 % Three months ended March 31, 2023 29 % 71 % 100 % |
Note 8 - Related-party Transact
Note 8 - Related-party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 8. Related-Party Transactions The Company recorded office and overhead expenses pertaining to a related company in general and administrative expense of $47 and $64 for the three months ended March 31, 2024 and 2023, respectively. The Company recognized a charge/(credit) to reimbursable payroll expense pertaining to a related company in general and administrative expense of $(15) and $22 for the three months ended March 31, 2024 and 2023, respectively. |
Note 9 - Segment Reporting
Note 9 - Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 9. Segment Reporting The Company has classified its reporting segments into commercial and residential rental properties. The commercial reporting segment includes the 141 Livingston Street property and portions of the 250 Livingston Street, Tribeca House, Dean Street and Aspen properties. The residential reporting segment includes the Flatbush Gardens property, the Clover House property, the 10 West 65th Street property, the 1010 Pacific Street property, and portions of the 250 Livingston Street, Tribeca House Aspen properties and the Dean street development. The Company’s income from operations by segment for the three months ended March 31, 2024 and 2023, is as follows (unaudited): Three months ended March 31, 2024 Commercial Residential Total Rental income $ 9,654 $ 26,106 $ 35,760 Total revenues $ 9,654 $ 26,106 $ 35,760 Property operating expenses 1,250 7,372 8,622 Real estate taxes and insurance 2,516 4,620 7,136 General and administrative 644 2,907 3,551 Depreciation and amortization 1,496 5,883 7,379 Total operating expenses 5,906 20,782 26,688 Income from operations $ 3,748 $ 5,324 $ 9,072 Three months ended March 31, 2023 Commercial Residential Total Rental income $ 9,727 $ 23,940 $ 33,667 Total revenues 9,727 $ 23,940 $ 33,667 Property operating expenses 1,215 6,884 8,099 Real estate taxes and insurance 2,249 6,287 8,536 General and administrative 571 2,722 3,293 Depreciation and amortization 1,442 5,383 6,825 Total operating expenses 5,477 21,276 26,753 Income from operations $ 4,250 $ 2,664 $ 6,914 The Company’s total assets by segment are as follows, as of: Commercial Residential Total March 31, 2024 (unaudited) $ 315,448 $ 948,495 $ 1,263,943 December 31, 2023 313,666 935,664 1,249,330 The Company’s interest expense by segment for the three months ended March 31, 2024 and 2023, is as follows (unaudited): Commercial Residential Total Three months ended March 31, 2024 $ 2,522 $ 9,216 $ 11,738 2023 $ 2,460 $ 7,675 $ 10,135 The Company’s capital expenditures, including acquisitions, by segment for the three months ended March 31, 2024 and 2023, are as follows (unaudited): Commercial Residential Total Three months ended March 31, 2024 $ 1,219 $ 19,719 $ 20,938 2023 $ 1,677 $ 9,489 $ 11,166 |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 10. Subsequent Events Subsequent to March 31, 2024 the Board of Directors of the Company declared a first quarter dividend of $0.095 per share, to stockholders of record on May 21, 2024, payable May 30, 2024. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | ITEM 5. OTHER INFORMATION None |
Rule 10b5-1 Arrangement Adopted [Flag] | false |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | Segments At March 31, 2024, the Company had two |
Consolidation, Policy [Policy Text Block] | Basis of Consolidation The accompanying consolidated financial statements of the Company are prepared in accordance with GAAP. The effect of all intercompany balances has been eliminated. The consolidated financial statements include the accounts of all entities in which the Company has a controlling interest. The ownership interests of other investors in these entities are recorded as non-controlling interests. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from these estimates. |
Real Estate, Policy [Policy Text Block] | Investment in Real Estate Real estate assets held for investment are carried at historical cost and consist of land, buildings and improvements, furniture, fixtures and equipment. Expenditures for ordinary repair and maintenance costs are charged to expense as incurred. Expenditures for improvements, renovations, and replacements of real estate assets are capitalized and depreciated over their estimated useful lives if the expenditures qualify as betterment or the life of the related asset will be substantially extended beyond the original life expectancy. In accordance with ASU 2018-01, "Business Combinations – Clarifying the Definition of a Business,” the Company evaluates each acquisition of real estate or in-substance real estate to determine if the integrated set of assets and activities acquired meets the definition of a business and needs to be accounted for as a business combination. If either of the following criteria is met, the integrated set of assets and activities acquired would not qualify as a business: • Substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group of similar identifiable assets; or • The integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., revenue generated before and after the transaction). An acquired process is considered substantive if: • The process includes an organized workforce (or includes an acquired contract that provides access to an organized workforce) that is skilled, knowledgeable and experienced in performing the process: • The process cannot be replaced without significant cost, effort or delay; or • The process is considered unique or scarce. Generally, the Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land, buildings and related intangible assets) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. Upon acquisition of real estate, the Company assesses the fair values of acquired tangible and intangible assets including land, buildings, tenant improvements, above-market and below-market leases, in-place leases and any other identified intangible assets and assumed liabilities. The Company allocates the purchase price to the assets acquired and liabilities assumed based on their fair values. In estimating fair value of tangible and intangible assets acquired, the Company assesses and considers fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates, estimates of replacement costs, net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records acquired above-market and below-market lease values initially based on the present value, using a discount rate which reflects the risks associated with the leases acquired based on the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed renewal options for the below-market leases. Other intangible assets acquired include amounts for in-place lease values and tenant relationship values (if any) that are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A property’s value is impaired if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, a write-down is recorded and measured by the amount of the difference between the carrying value of the asset and the fair value of the asset. In the event that the Company obtains proceeds through an insurance policy due to impairment, the proceeds are offset against the write-down in calculating gain/loss on disposal of assets. Management of the Company does not believe that any of its properties within the portfolio are impaired as of March 31, 2024. For long-lived assets to be disposed of, impairment losses are recognized when the fair value of the assets less estimated cost to sell is less than the carrying value of the assets. Properties classified as real estate held-for-sale generally represent properties that are actively marketed or contracted for sale with closing expected to occur within the next twelve months. Real estate held-for-sale is carried at the lower of cost, net of accumulated depreciation, or fair value less cost to sell, determined on an asset-by-asset basis. Expenditures for ordinary repair and maintenance costs on held-for-sale properties are charged to expense as incurred. Expenditures for improvements, renovations and replacements related to held-for-sale properties are capitalized at cost. Depreciation is not recorded on real estate held-for-sale. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balances of the related intangibles are written off. The tenant improvements and origination costs are amortized to expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: Years Building and improvements 10 – 44 Tenant improvements Shorter of useful life or lease term Furniture, fixtures and equipment 3 – 15 The capitalized above-market lease values are amortized as a reduction to base rental revenue over the remaining terms of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed rate renewal options of the respective leases. The value of in-place leases is amortized to expense over the remaining initial terms of the respective leases. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand and in banks, plus all short-term investments with a maturity of three months or less when purchased. The Company maintains some of its cash in bank deposit accounts, which, at times, may exceed the federally insured limit. No losses have been experienced related to such accounts. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash generally consists of escrows for future real estate taxes and insurance expenditures, repairs, capital improvements, loan reserves and security deposits. |
Tenant and Other Receivables, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Tenant and Other Receivables and Allowance for Doubtful Accounts Tenant and other receivables are comprised of amounts due for monthly rents and other charges less allowance for doubtful accounts. In accordance with Accounting Standards Codification (“ASC”) 842 “Leases,” the Company performed a detailed review of amounts due from tenants to determine if accounts receivable balances and future lease payments were probable of collection, wrote off receivables not probable of collection and recorded a general reserve against revenues for receivables probable of collection for which a loss can be reasonably estimated. If management determines that the tenant receivable is not probable of collection it is written off against revenues. In addition, the Company records a general reserve under ASC 450. |
Deferred Charges, Policy [Policy Text Block] | Deferred Costs Deferred lease costs consist of fees incurred to initiate and renew operating leases. Lease costs are being amortized using the straight-line method over the terms of the respective leases. Deferred financing costs represent commitment fees, legal and other third-party costs associated with obtaining financing. These costs are amortized over the term of the financing and are recorded in interest expense in the consolidated statements of operations. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financing transactions which do not close are expensed in the period the financing transaction is terminated. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) adjusted for changes in unrealized gains and losses, reported in equity, for financial instruments required to be reported at fair value under GAAP. For the three months ended March 31, 2024 and 2023, the Company did not own any financial instruments for which the change in value was not reported in net income (loss); accordingly, its comprehensive income (loss) was its net income (loss) as presented in the consolidated statements of operations. |
Revenue [Policy Text Block] | Revenue Recognition As mentioned above under Tenant and Other Receivables and Allowance for Doubtful Accounts For the three months ended March 31, 2024 and 2023, the Company has charged revenue in the amount of $787 and $1,566, respectively, for residential receivables not deemed probably of collection and recognized revenue of $115 and $717, respectively, for a reassessment of collectability of residential receivables previously not deemed probably of collection. In accordance with the provisions of ASC 842, rental revenue for commercial leases is recognized on a straight-line basis over the terms of the respective leases. Deferred rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Rental income attributable to residential leases and parking is recognized as earned, which is not materially different from the straight-line basis. Leases entered by residents for apartment units are generally for one-year terms, renewable upon consent of both parties on an annual or monthly basis. Reimbursements for operating expenses due from tenants pursuant to their lease agreements are recognized as revenue in the period the applicable expenses are incurred. These costs generally include real estate taxes, utilities, insurance, common area maintenance costs and other recoverable costs and are recorded as part of commercial rental income in the condensed consolidated statements of operations. |
Share-Based Payment Arrangement [Policy Text Block] | Stock-based Compensation The Company accounts for stock-based compensation pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, “Compensation — Stock Compensation.” As such, all equity-based awards are reflected as compensation expense in the Company’s consolidated statements of operations over their vesting period based on the fair value at the date of grant. In the event of a forfeiture, the previously recognized expense would be reversed. As of March 31, 2024, and December 31, 2023, there were 3,893,678 and 3,391,904 long-term incentive plan (“LTIP”) units outstanding, respectively, with a weighted average grant date fair value of $8.28 and $8.79 per unit, respectively. As of March 31, 2024, and December 31, 2023, there was $11.6 million and $10.2 million, respectively, of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under share incentive plans. As of March 31, 2024, the weighted-average period over which the unrecognized compensation expense will be recorded is approximately four In March 2024, the Company granted employees and non-employee directors 320,172 and 181,602 LTIP units, respectively, with a weighted-average grant date value of $4.90 per unit. The grants vesting period range from up to one |
Transaction Pursuit Costs, Policy [Policy Text Block] | Transaction Pursuit Costs Transaction pursuit costs primarily reflect costs incurred for abandoned acquisition, disposition or other transaction pursuits. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company elected to be taxed and to operate in a manner that will allow it to qualify as a REIT under the Code. To qualify as a REIT, the Company is required to distribute dividends equal to at least 90% of the REIT taxable income (computed without regard to the dividends paid deduction and net capital gains) to its stockholders, and meet the various other requirements imposed by the Code relating to matters such as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided the Company qualifies for taxation as a REIT, it is generally not subject to U.S. federal corporate-level income tax on the earnings distributed currently to its stockholders. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to U.S. federal and state income tax on its taxable income at regular corporate tax rates and any applicable alternative minimum tax. In addition, the Company may not be able to re-elect as a REIT for the four subsequent taxable years. The entities comprising the Predecessor are limited liability companies and are treated as pass-through entities for income tax purposes. Accordingly, no In accordance with FASB ASC Topic 740, the Company believes that it has appropriate support for the income tax positions taken and, as such, does not have any uncertain tax positions that, if successfully challenged, could result in a material impact on its financial position or results of operations. The prior three years’ income tax returns are subject to review by the Internal Revenue Service. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements Refer to Note 7, “Fair Value of Financial Instruments”. |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments FASB derivative and hedging guidance establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. As required by FASB guidance, the Company records all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecast transactions, are considered cash flow hedges. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income (loss) (outside of earnings) and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in the fair value or cash flows of the derivative hedging instrument with the changes in the fair value or cash flows of the designated hedged item or transaction. For derivatives not designated as hedges, changes in fair value would be recognized in earnings. As of March 31, 2024 and December 31, 2023, the Company has no derivatives for which it applies hedge accounting. |
Earnings Per Share, Policy [Policy Text Block] | Loss Per Share Basic and diluted net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding. As of March 31, 2024 and 2023, the Company had unvested LTIP units which provide for non-forfeitable rights to dividend-equivalent payments. Accordingly, these unvested LTIP units are considered participating securities and are included in the computation of basic and diluted net loss per share pursuant to the two-class method. The Company did not The effect of the conversion of the 26,317 Class B LLC units outstanding is not reflected in the computation of basic and diluted net loss per share, as the effect would be anti-dilutive. The net loss allocable to such units is reflected as non-controlling interests in the accompanying consolidated financial statements. The following table sets forth the computation of basic and diluted net loss per share for the periods indicated (unaudited): Three Months Ended March 31, (in thousands, except per share amounts) 2024 2023 Numerator Net loss attributable to common stockholders $ (1,011 ) $ (2,687 ) Less: income attributable to participating securities (370 ) (322 ) Subtotal $ (1,381 ) $ (3,009 ) Denominator Weighted-average common shares outstanding 16,063 16,063 Basic and diluted net loss per share attributable to common stockholders $ (0.09 ) $ (0.19 ) |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Pronouncements On August 23, 2023, the FASB issued ASU 2023-05 that will require a joint venture, upon formation, to measure its assets and liabilities at fair value in its standalone financial statements. A joint venture will recognize the difference between the fair value of its equity and the fair value of its identifiable assets and liabilities as goodwill (or an equity adjustment, if negative) using the business combination accounting guidance regardless of whether the net assets meet the definition of a business. The new accounting standard is intended to reduce diversity in practice. This ASU will apply to joint ventures that meet the definition of a corporate joint venture under GAAP, thus limiting its scope to joint ventures not controlled and therefore not consolidated by any joint venture investor. We currently have no material joint ventures and as such do not expect it to have a material impact on our consolidated financial statements. This accounting standard will become effective for joint ventures with a formation date on or after January 1, 2025, with early adoption permitted. We expect to adopt this ASU on January 1, 2025. On November 27, 2023, the FASB issued ASU 2023-07 to require the disclosure of segment expenses if they are (i) significant to the segment, (ii) regularly provided to the chief operating decision maker (“CODM”), and (iii) included in each reported measure of a segment’s profit or loss. Public entities will be required to provide this disclosure quarterly. In addition, this ASU requires an annual disclosure of the CODM’s title and a description of how the CODM uses the segment’s profit/loss measure to assess segment performance and to allocate resources. Compliance with these and certain other disclosure requirements will be required for our annual report on Form 10-K for the year 2024, and for subsequent quarterly and annual reports, with early adoption permitted. The Company is currently evaluating the impact of this standard on our current disclosures. |
Note 2- Significant Accountin_2
Note 2- Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Property, Plant and Equipment, Useful Life [Table Text Block] | Years Building and improvements 10 – 44 Tenant improvements Shorter of useful life or lease term Furniture, fixtures and equipment 3 – 15 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, (in thousands, except per share amounts) 2024 2023 Numerator Net loss attributable to common stockholders $ (1,011 ) $ (2,687 ) Less: income attributable to participating securities (370 ) (322 ) Subtotal $ (1,381 ) $ (3,009 ) Denominator Weighted-average common shares outstanding 16,063 16,063 Basic and diluted net loss per share attributable to common stockholders $ (0.09 ) $ (0.19 ) |
Note 3 - Deferred Costs and I_2
Note 3 - Deferred Costs and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Deferred Costs and Intangible Assets [Table Text Block] | March 31, December 31, (unaudited) Deferred costs $ 348 $ 348 Lease origination costs 1,543 1,474 In-place leases 428 428 Real estate tax abatements 9,142 9,142 Total deferred costs and intangible assets 11,461 11,392 Less accumulated amortization (5,412 ) (5,265 ) Total deferred costs and intangible assets, net $ 6,049 $ 6,127 |
Schedule of Deferred Costs and Intangible Assets, Future Amortization Expense [Table Text Block] | 2024 (Remainder) $ 440 2025 569 2026 546 2027 534 2028 520 Thereafter 3,440 Total $ 6,049 |
Note 4 - Notes Payable (Tables)
Note 4 - Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | Property Maturity Interest Rate March 31, December 31, Flatbush Gardens, Brooklyn, NY (a) 6/1/2032 3.125 % $ 329,000 $ 329,000 250 Livingston Street, Brooklyn, NY (b) 6/6/2029 3.63 % 125,000 125,000 141 Livingston Street, Brooklyn, NY (c) 3/6/2031 3.21 % 100,000 100,000 Tribeca House, Manhattan, NY (d) 3/6/2028 4.506 % 360,000 360,000 Aspen, Manhattan, NY (e) 7/1/2028 3.68 % 60,606 61,004 Clover House, Brooklyn, NY (f) 12/1/2029 3.53 % 82,000 82,000 10 West 65th Street, Manhattan, NY (g) 11/1/2027 SOFR % 31,741 31,836 1010 Pacific Street, Brooklyn, NY (h) 9/15/2025 5.55 % 60,000 60,000 1010 Pacific Street, Brooklyn, NY (h) 9/15/2025 6.37 % 20,000 20,000 Dean Street, Brooklyn, NY (i) 8/10/2026 SOFR % 62,026 42,909 Dean Street, Brooklyn, NY (i) 8/10/2026 SOFR % 8,623 7,280 Total debt $ 1,238,996 $ 1,219,029 Unamortized debt issuance costs (12,308 ) (13,405 ) Total debt, net of unamortized debt issuance costs $ 1,226,688 $ 1,205,624 |
Schedule of Maturities of Long-Term Debt [Table Text Block] | 2024 (Remainder) $ 1,500 2025 82,092 2026 72,839 2027 33,461 2028 416,554 Thereafter 632,550 Total $ 1,238,996 |
Note 5 - Rental Income Under _2
Note 5 - Rental Income Under Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Lessor, Operating Lease, Payment to be Received, Maturity [Table Text Block] | 2024 (Remainder) $ 23,041 2025 25,119 2026 4,854 2027 4,230 2028 3,143 Thereafter 20,449 Total $ 80,836 |
Note 6 - Fair Value of Financ_2
Note 6 - Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | March 31, December 31, (unaudited) Carrying amount (excluding unamortized debt issuance costs) $ 1,238,996 $ 1,219,029 Estimated fair value $ 1,167,092 $ 1,160,393 |
Note 7 - Commitments and Cont_2
Note 7 - Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Commercial Residential Total Three months ended March 31, 2024 27 % 73 % 100 % Three months ended March 31, 2023 29 % 71 % 100 % |
Note 9 - Segment Reporting (Tab
Note 9 - Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three months ended March 31, 2024 Commercial Residential Total Rental income $ 9,654 $ 26,106 $ 35,760 Total revenues $ 9,654 $ 26,106 $ 35,760 Property operating expenses 1,250 7,372 8,622 Real estate taxes and insurance 2,516 4,620 7,136 General and administrative 644 2,907 3,551 Depreciation and amortization 1,496 5,883 7,379 Total operating expenses 5,906 20,782 26,688 Income from operations $ 3,748 $ 5,324 $ 9,072 Three months ended March 31, 2023 Commercial Residential Total Rental income $ 9,727 $ 23,940 $ 33,667 Total revenues 9,727 $ 23,940 $ 33,667 Property operating expenses 1,215 6,884 8,099 Real estate taxes and insurance 2,249 6,287 8,536 General and administrative 571 2,722 3,293 Depreciation and amortization 1,442 5,383 6,825 Total operating expenses 5,477 21,276 26,753 Income from operations $ 4,250 $ 2,664 $ 6,914 Commercial Residential Total March 31, 2024 (unaudited) $ 315,448 $ 948,495 $ 1,263,943 December 31, 2023 313,666 935,664 1,249,330 Commercial Residential Total Three months ended March 31, 2024 $ 2,522 $ 9,216 $ 11,738 2023 $ 2,460 $ 7,675 $ 10,135 Commercial Residential Total Three months ended March 31, 2024 $ 1,219 $ 19,719 $ 20,938 2023 $ 1,677 $ 9,489 $ 11,166 |
Note 1 - Organization (Details
Note 1 - Organization (Details Textual) | Mar. 31, 2024 ft² |
Percentage of Aggregate Cash Distributions From, and Profits and Losses | 37.90% |
Tribeca House properties in Manhattan [Member] | |
Number of Buildings | 2 |
Tribeca House properties in Manhattan [Member] | Residential Rental [Member] | |
Gross Leasable Area (Square Foot) | 483,000 |
Tribeca House properties in Manhattan, Building One [Member] | |
Number of Stories | 21 |
Tribeca House properties in Manhattan, Building One [Member] | Rental Retail and Parking [Member] | |
Gross Leasable Area (Square Foot) | 77,000 |
Tribeca House properties in Manhattan, Building Two [Member] | |
Number of Stories | 12 |
Flatbush Gardens, Brooklyn, NY [Member] | Multifamily [Member] | |
Number of Buildings | 59 |
Gross Leasable Area (Square Foot) | 1,749,000 |
Number of Rentable Units | 2,494 |
141 Livingston Street in Brooklyn [Member] | Office Building [Member] | |
Number of Stories | 15 |
Gross Leasable Area (Square Foot) | 216,000 |
250 Livingston Street in Brooklyn [Member] | Office and Residential Building [Member] | |
Number of Stories | 12 |
Gross Leasable Area (Square Foot) | 370,000 |
Aspen [Member] | |
Number of Stories | 7 |
Aspen [Member] | Residential Rental [Member] | |
Gross Leasable Area (Square Foot) | 166,000 |
Aspen [Member] | Retail Site [Member] | |
Gross Leasable Area (Square Foot) | 21,000 |
Clover House [Member] | |
Number of Stories | 11 |
Clover House [Member] | Apartment Building [Member] | |
Gross Leasable Area (Square Foot) | 102,000 |
Residential Property At 10 West 65th Street [Member] | Residential Rental [Member] | |
Number of Stories | 6 |
Gross Leasable Area (Square Foot) | 76,000 |
Residential Property At 1010 Pacific Street [Member] | Residential Rental [Member] | |
Number of Stories | 9 |
Gross Leasable Area (Square Foot) | 119,000 |
Dean Street, Prospect Heights [Member] | Residential Rental [Member] | |
Number of Stories | 9 |
Gross Leasable Area (Square Foot) | 160,000 |
Dean Street, Prospect Heights [Member] | Retail Site [Member] | |
Gross Leasable Area (Square Foot) | 9,000 |
Note 2- Significant Accountin_3
Note 2- Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 USD ($) $ / shares shares | Mar. 31, 2023 | Mar. 31, 2024 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) shares | Sep. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) $ / shares shares | |
Number of Operating Segments | 2 | |||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ | $ 11,600 | $ 11,600 | $ 10,200 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 4 years | |||||
Percent of Distributed Dividends Equal to Taxable REIT Income | 90% | |||||
Income Tax Expense (Benefit) | $ | $ 0 | |||||
Weighted Average Number of Shares Outstanding, Diluted, Adjustment | 0 | 0 | ||||
Class B LLC Units [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 26,317 | |||||
LTIP Units [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 3,893,678 | 3,893,678 | 3,391,904 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 8.28 | $ 8.28 | $ 8.79 | |||
LTIP Units [Member] | Employees [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 320,172 | |||||
LTIP Units [Member] | Employees [Member] | Minimum [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 1 year | |||||
LTIP Units [Member] | Employees [Member] | Maximum [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 2 years 6 months | |||||
LTIP Units [Member] | Non-employee Director [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 181,602 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 4.9 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 1 year | |||||
Collectability of Lease Receivables [Member] | ||||||
Loss Contingency, Loss in Period | $ | $ 787 | $ 1,566 | ||||
Revenues | $ | $ 115 | $ 717 |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies - Estimated Useful Lives of Assets (Details) | Mar. 31, 2024 |
Building and Building Improvements [Member] | Minimum [Member] | |
Building and improvements (in years) (Year) | 10 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Building and improvements (in years) (Year) | 44 years |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Building and improvements (in years) (Year) | 3 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Building and improvements (in years) (Year) | 15 years |
Note 2 - Significant Accounti_2
Note 2 - Significant Accounting Policies - Basic and Diluted Earnings (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net loss attributable to common stockholders | $ (1,011) | $ (2,687) |
Less: income attributable to participating securities | (370) | (322) |
Subtotal | $ (1,381) | $ (3,009) |
Weighted-average common shares outstanding (in shares) | 16,063 | 16,063 |
Basic and diluted net loss per share (in dollars per share) | $ (0.09) | $ (0.19) |
Note 3 - Deferred Costs and I_3
Note 3 - Deferred Costs and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Amortization of Lease Origination Costs and In-place Lease Intangible Assets | $ 26 | $ 26 |
Amortization of Real Estate Abatements | $ 120 | $ 120 |
Note 3 - Deferred Costs and I_4
Note 3 - Deferred Costs and Intangible Assets - Deferred Costs and Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Deferred costs | $ 348 | $ 348 |
Lease origination costs | 1,543 | 1,474 |
In-place leases | 428 | 428 |
Real estate tax abatements | 9,142 | 9,142 |
Total deferred costs and intangible assets | 11,461 | 11,392 |
Less accumulated amortization | (5,412) | (5,265) |
Total deferred costs and intangible assets, net | $ 6,049 | $ 6,127 |
Note 3 - Deferred Costs and I_5
Note 3 - Deferred Costs and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
2023 (Remainder) | $ 440 | |
2025 | 569 | |
2026 | 546 | |
2027 | 534 | |
Deferred Costs and Intangible Assets, Amortization Expense, Year Five | 520 | |
Thereafter | 3,440 | |
Total deferred costs and intangible assets, net | $ 6,049 | $ 6,127 |
Note 4 - Notes Payable (Details
Note 4 - Notes Payable (Details Textual) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 60 Months Ended | 132 Months Ended | ||||||||||||||||||
Mar. 31, 2024 USD ($) | Sep. 15, 2023 USD ($) | Aug. 10, 2023 USD ($) | Feb. 09, 2023 USD ($) | Aug. 26, 2022 USD ($) | Dec. 22, 2021 USD ($) | Aug. 10, 2021 USD ($) | Feb. 18, 2021 USD ($) | May 08, 2020 USD ($) | Dec. 24, 2019 USD ($) | May 31, 2019 USD ($) | Apr. 30, 2022 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) a | Jun. 30, 2023 USD ($) | Nov. 01, 2027 | Jul. 31, 2028 USD ($) | Feb. 23, 2024 a | Sep. 30, 2023 USD ($) | Oct. 31, 2022 | Nov. 08, 2019 USD ($) | Feb. 21, 2018 USD ($) | Jun. 27, 2016 USD ($) | |
Escrow Deposits Related to Property Sales | $ 10,000,000 | ||||||||||||||||||||||
Long-Term Debt, Gross | 1,238,996,000 | $ 1,238,996,000 | |||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | 0 | $ (3,868,000) | |||||||||||||||||||||
Notes Payable [Member] | |||||||||||||||||||||||
Interest Payable | 461,000 | 461,000 | |||||||||||||||||||||
Letter of Credit [Member] | |||||||||||||||||||||||
Long-Term Line of Credit | 10,000,000 | 10,000,000 | |||||||||||||||||||||
Office Space At 250 Livingston [Member] | |||||||||||||||||||||||
Area of Real Estate Property (Acre) | a | 342,496 | 342,496 | |||||||||||||||||||||
New York Community Bank [Member] | Property at 10 W 65th St. Manhattan, NY [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.875% | ||||||||||||||||||||||
Metlife Real Estate Lending LLC [Member] | Clover House Loans [Member] | |||||||||||||||||||||||
Long-Term Debt, Gross | $ 82,000,000 | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.53% | ||||||||||||||||||||||
Valley National Bank [Member] | Dean Street, Prospect Heights [Member] | |||||||||||||||||||||||
Long-Term Line of Credit | $ 0 | ||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | ||||||||||||||||||||||
BADF 953 Dean Street Lender LLC [Member] | Dean Street, Prospect Heights [Member] | |||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 8,000,000 | ||||||||||||||||||||||
Secured First Mortgage Loan [Member] | New York Community Bank [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 329,000,000 | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | ||||||||||||||||||||||
Secured First Mortgage Loan [Member] | New York Community Bank [Member] | Prime Rate [Member] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||||||||||||||
First Mortgage Loan With Interest-only Payments [Member] | Citi Real Estate Funding Inc. [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.63% | ||||||||||||||||||||||
Proceeds from Issuance of Long-Term Debt | $ 125,000,000 | ||||||||||||||||||||||
Debt Instrument, Prepayment Option, Number of Months Before Maturity (Year) | 3 years | ||||||||||||||||||||||
Secured First Mortgage Note [Member] | Citi Real Estate Funding Inc. [Member] | 141 Livingston Street, Brooklyn [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.21% | ||||||||||||||||||||||
Proceeds from Issuance of Long-Term Debt | $ 100,000,000 | ||||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 3,868,000 | ||||||||||||||||||||||
Fixed Interest Rate Financing [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.506% | ||||||||||||||||||||||
Long-Term Debt, Gross | $ 360,000,000 | ||||||||||||||||||||||
Mortgages [Member] | New York Community Bank [Member] | Property at 10 W 65th St. Manhattan, NY [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 3.375% | |||||||||||||||||||||
Long-Term Debt, Gross | $ 31,700,000 | ||||||||||||||||||||||
Mortgages [Member] | New York Community Bank [Member] | Prime Rate [Member] | Property at 10 W 65th St. Manhattan, NY [Member] | Forecast [Member] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||||||||||||||
Mortgages [Member] | New York Community Bank [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Property at 10 W 65th St. Manhattan, NY [Member] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||||||||||||||
Mortgages [Member] | Capital One Multifamily Finance LLC [Member] | Aspen [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.68% | ||||||||||||||||||||||
Long-Term Debt, Gross | $ 70,000,000 | ||||||||||||||||||||||
Mortgages [Member] | Capital One Multifamily Finance LLC [Member] | Aspen [Member] | Forecast [Member] | |||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 321,000 | ||||||||||||||||||||||
Mortgages [Member] | Citibank NA [Member] | Residential Property At 1010 Pacific Street [Member] | |||||||||||||||||||||||
Long-Term Debt, Gross | $ 18,600,000 | ||||||||||||||||||||||
Mortgages [Member] | Citibank NA [Member] | Residential Property At 1010 Pacific Street [Member] | Minimum [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.25% | ||||||||||||||||||||||
Mortgages [Member] | Citibank NA [Member] | London Interbank Offered Rate (LIBOR) 1 [Member] | Residential Property At 1010 Pacific Street [Member] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.60% | ||||||||||||||||||||||
Mortgages [Member] | Bank Leumi, N.A [Member] | Dean Street, Prospect Heights [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | 36,985,000 | ||||||||||||||||||||||
Long-Term Debt, Gross | $ 30,000,000 | ||||||||||||||||||||||
Proceeds from Issuance of Debt | $ 6,985,000 | ||||||||||||||||||||||
Mortgages [Member] | Bank Leumi, N.A [Member] | Dean Street, Prospect Heights [Member] | Minimum [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.25% | ||||||||||||||||||||||
Mortgages [Member] | Bank Leumi, N.A [Member] | Prime Rate [Member] | Dean Street, Prospect Heights [Member] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.60% | ||||||||||||||||||||||
Construction Loans [Member] | Dean Street, Prospect Heights [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | 62,400,000 | ||||||||||||||||||||||
Proceeds from Issuance of Long-Term Debt | $ 19,574,000 | ||||||||||||||||||||||
Construction Loans [Member] | Citibank NA [Member] | Residential Property At 1010 Pacific Street [Member] | |||||||||||||||||||||||
Debt Agreement Maximum Borrowing Capacity | $ 2,987,000 | ||||||||||||||||||||||
Mortgages 2 [Member] | AIG Asset Management[Member] | Residential Property At 1010 Pacific Street [Member] | |||||||||||||||||||||||
Debt Agreement Maximum Borrowing Capacity | $ 52,500,000 | ||||||||||||||||||||||
Mortgages 2 [Member] | AIG Asset Management[Member] | London Interbank Offered Rate [Member] | Residential Property At 1010 Pacific Street [Member] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.60% | ||||||||||||||||||||||
Mortgages 2 [Member] | Valley National Bank [Member] | Residential Property At 1010 Pacific Street [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.37% | 5.70% | |||||||||||||||||||||
Proceeds from Issuance of Long-Term Debt | $ 20,000,000 | $ 60,000,000 | |||||||||||||||||||||
Debt Agreement Maximum Borrowing Capacity | 80,000,000 | ||||||||||||||||||||||
Debt Instrument, Contingent Funding. | $ 20,000,000 | ||||||||||||||||||||||
Mortgages 2 [Member] | Valley National Bank [Member] | Contingent Rate [member] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||||||||||||||||||||
Mezzanine Note Agreement [Member] | Dean Street, Prospect Heights [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 8,000,000 | ||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 10% | ||||||||||||||||||||||
Proceeds from Issuance of Long-Term Debt | $ 3,500,000 | $ 4,500,000 | |||||||||||||||||||||
Debt Instrument, Term (Month) | 30 months | ||||||||||||||||||||||
Debt Instrument, Interest Rate Floor | 13% | (15.33%) | |||||||||||||||||||||
Mezzanine Note Agreement [Member] | Valley National Bank [Member] | Dean Street, Prospect Heights [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 115,000,000 | ||||||||||||||||||||||
Senior Notes [Member] | Dean Street, Prospect Heights [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 115,000,000 | ||||||||||||||||||||||
Debt Instrument, Term (Month) | 30 months | ||||||||||||||||||||||
Debt Instrument, Interest Rate Floor | (9.33%) | 5.50% | (9.33%) | ||||||||||||||||||||
Debt Instrument, Payment Guarantee Percentage | 30% | ||||||||||||||||||||||
Senior Notes [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Dean Street, Prospect Heights [Member] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4% | ||||||||||||||||||||||
Project Loan [Member] | Dean Street, Prospect Heights [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 15,600,000 | ||||||||||||||||||||||
Proceeds from Issuance of Long-Term Debt | $ 5,467 | ||||||||||||||||||||||
Line of Credit [Member] | Valley National Bank [Member] | Prime Rate [Member] | Dean Street, Prospect Heights [Member] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Note 4 - Notes Payable - Mortga
Note 4 - Notes Payable - Mortgages and Mezzanine Note Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | ||
Flatbush Gardens, Brooklyn, NY (a) | $ 1,238,996 | |||
Unamortized loan costs | 12,308 | $ 13,405 | ||
Total debt, net of unamortized debt issuance costs | 1,226,688 | $ 1,205,624 | ||
Mortgages and Mezzanine Notes 1[Member] | ||||
Flatbush Gardens, Brooklyn, NY (a) | 1,238,996 | 1,219,029 | ||
Unamortized loan costs | $ 12,308 | 13,405 | ||
Mortgages and Mezzanine Notes 1[Member] | Flatbush Gardens, Brooklyn, NY [Member] | ||||
us-gaap_DebtInstrumentInterestRateStatedPercentage | [1] | 3.125% | ||
Flatbush Gardens, Brooklyn, NY (a) | [1] | $ 329,000 | 329,000 | |
Mortgages and Mezzanine Notes 1[Member] | 250 Livingston Street in Brooklyn [Member] | ||||
us-gaap_DebtInstrumentInterestRateStatedPercentage | [2] | 3.63% | ||
Flatbush Gardens, Brooklyn, NY (a) | [2] | $ 125,000 | 125,000 | |
Mortgages and Mezzanine Notes 1[Member] | 141 Livingston Street, Brooklyn [Member] | ||||
us-gaap_DebtInstrumentInterestRateStatedPercentage | [3] | 3.21% | ||
Flatbush Gardens, Brooklyn, NY (a) | [3] | $ 100,000 | 100,000 | |
Mortgages and Mezzanine Notes 1[Member] | Tribeca House Properties [Member] | ||||
us-gaap_DebtInstrumentInterestRateStatedPercentage | [4] | 4.506% | ||
Flatbush Gardens, Brooklyn, NY (a) | [4] | $ 360,000 | 360,000 | |
Mortgages and Mezzanine Notes 1[Member] | Aspen [Member] | ||||
us-gaap_DebtInstrumentInterestRateStatedPercentage | [5] | 3.68% | ||
Flatbush Gardens, Brooklyn, NY (a) | [5] | $ 60,606 | 61,004 | |
Mortgages and Mezzanine Notes 1[Member] | Clover House [Member] | ||||
us-gaap_DebtInstrumentInterestRateStatedPercentage | [6] | 3.53% | ||
Flatbush Gardens, Brooklyn, NY (a) | [6] | $ 82,000 | 82,000 | |
Mortgages and Mezzanine Notes 1[Member] | Property at 10 W 65th St. Manhattan, NY [Member] | ||||
Flatbush Gardens, Brooklyn, NY (a) | [7] | $ 31,741 | 31,836 | |
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] | us-gaap:SecuredOvernightFinancingRateSofrMember | |||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
Mortgages and Mezzanine Notes 1[Member] | Residential Property At 1010 Pacific Street [Member] | ||||
us-gaap_DebtInstrumentInterestRateStatedPercentage | [8] | 5.55% | ||
Flatbush Gardens, Brooklyn, NY (a) | [8] | $ 60,000 | 60,000 | |
Mortgages and Mezzanine Notes 1[Member] | Dean Street, Prospect Heights [Member] | ||||
Flatbush Gardens, Brooklyn, NY (a) | [9] | $ 62,026 | 42,909 | |
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] | us-gaap:SecuredOvernightFinancingRateSofrMember | |||
Debt Instrument, Basis Spread on Variable Rate | 4% | |||
Mortgages and Mezzanine Notes 2 [Member] | Residential Property At 1010 Pacific Street [Member] | ||||
us-gaap_DebtInstrumentInterestRateStatedPercentage | [8] | 6.37% | ||
Flatbush Gardens, Brooklyn, NY (a) | [8] | $ 20,000 | 20,000 | |
Mortgages and Mezzanine Notes 2 [Member] | Dean Street, Prospect Heights [Member] | ||||
Flatbush Gardens, Brooklyn, NY (a) | [9] | $ 8,623 | $ 7,280 | |
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] | us-gaap:SecuredOvernightFinancingRateSofrMember | |||
Debt Instrument, Basis Spread on Variable Rate | 10% | |||
[1]The $329,000 mortgage note agreement with New York Community Bank (“NYCB”), entered into on May 8, 2020, matures on June 1, 2032, and bears interest at 3.125% through May 2027 and thereafter at the prime rate plus 2.75%, subject to an option to fix the rate. The note requires interest-only payments through May 2027, and monthly principal and interest payments thereafter based on a 30-year amortization schedule. The Company has the option to prepay all (but not less than all) of the unpaid balance of the note prior to the maturity date, subject to certain prepayment premiums, as defined.[2]The $125,000 mortgage note agreement with Citi Real Estate Funding Inc., entered into on May 31, 2019, matures on June 6, 2029, bears interest at 3.63% and requires interest-only payments for the entire term. The Company has the option to prepay all (but not less than all) of the unpaid balance of the note within three 7.875 1.25 3.25 |
Note 4 - Notes Payable - Summar
Note 4 - Notes Payable - Summary of Principal Payment Requirements (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
2023 (Remainder) | $ 1,500 |
2025 | 82,092 |
2026 | 72,839 |
2027 | 33,461 |
Long-Term Debt, Maturity, Year Five | 416,554 |
Thereafter | 632,550 |
Total | $ 1,238,996 |
Note 5 - Rental Income Under _3
Note 5 - Rental Income Under Operating Leases (Details Textual) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 a | Dec. 31, 2023 USD ($) | Feb. 23, 2024 a | |
Office Space At 250 Livingston [Member] | ||||
Area of Real Estate Property (Acre) | a | 342,496 | 342,496 | ||
Proceeds from Lease Payment, Operating Activity | $ | $ 15,400 | |||
Total Revenue [Member] | Customer Concentration Risk [Member] | City of New York [Member] | ||||
Concentration Risk, Percentage | 22% | 24% |
Note 5 - Rental Income Under _4
Note 5 - Rental Income Under Operating Leases - Minimum Future Cash Rents Receivable (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
2023 (Remainder) | $ 23,041 |
2025 | 25,119 |
2026 | 4,854 |
2027 | 4,230 |
Lessor, Operating Lease, Payment to be Received, Year Four | 3,143 |
Thereafter | 20,449 |
Total | $ 80,836 |
Note 6 - Fair Value of Financ_3
Note 6 - Fair Value of Financial Instruments - Carrying Amount and Fair Value of Mortgage Notes Payable (Details) - Mortgages [Member] - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Reported Value Measurement [Member] | ||
Long-term debt | $ 1,238,996 | $ 1,219,029 |
Estimate of Fair Value Measurement [Member] | ||
Long-term debt | $ 1,167,092 | $ 1,160,393 |
Note 7 - Commitments and Cont_3
Note 7 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 23, 2022 | May 09, 2022 | Mar. 31, 2024 | Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2023 | Jun. 29, 2023 | |
Litigation Settlement, Fee Expense | $ 2,700 | ||||||
Housing Repair and Maintenance Letter Agreement [Member] | |||||||
Other Commitment | $ 27,000 | ||||||
Payments for Capital Improvements | $ 2,900 | ||||||
Obligated to Provide Parking [Member] | |||||||
Other Commitment | $ 205 | ||||||
The Kuzmich Case [Member] | |||||||
Litigation Settlement, Amount Awarded to Other Party | $ 1,200 | ||||||
Litigation Settlement, Amount Awarded to Other Party, Attorney Fee's | $ 400 | ||||||
Horn v 50 Murray Street Acquisition LLC, Index No.152415/21 [Member] | |||||||
Loss Contingency Accrual, Payments | $ 2,300 | ||||||
Loss Contingency Accrual | $ 400 |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies - Summary of Concentration Risk by Segment (Details) - Total Revenue [Member] - Geographic Concentration Risk [Member] - New York City [Member] | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Concentration risk | 100% | 100% |
Commercial Segment [Member] | ||
Concentration risk | 27% | 29% |
Residential Segment [Member] | ||
Concentration risk | 73% | 71% |
Note 8 - Related-party Transa_2
Note 8 - Related-party Transactions (Details Textual) - General and Administrative Expense [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Overhead Charged Related to Office Expenses [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 47 | $ 64 |
Reimbursable Payroll Expense [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 15 | $ 22 |
Note 9 - Segment Reporting - Se
Note 9 - Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Total revenues | $ 35,760 | $ 33,667 | |
Assets | 1,263,943 | $ 1,249,330 | |
Interest Expense, Operating and Nonoperating | 11,738 | 10,135 | |
Payments to Acquire Property, Plant, and Equipment | 20,938 | 11,166 | |
Interest expense | 11,738 | 10,135 | |
Property operating expenses | 8,622 | 8,099 | |
Real estate taxes and insurance | 7,136 | 8,536 | |
General and administrative | 3,551 | 3,293 | |
Depreciation and amortization | 7,379 | 6,825 | |
Total operating expenses | 26,688 | 26,753 | |
Income from operations | 9,072 | 6,914 | |
Rental Income [Member] | |||
Total revenues | 35,760 | 33,667 | |
Commercial Segment [Member] | |||
Total revenues | 9,654 | 9,727 | |
Assets | 315,448 | 313,666 | |
Interest Expense, Operating and Nonoperating | 2,522 | 2,460 | |
Payments to Acquire Property, Plant, and Equipment | 1,219 | 1,677 | |
Interest expense | 2,522 | 2,460 | |
Property operating expenses | 1,250 | 1,215 | |
Real estate taxes and insurance | 2,516 | 2,249 | |
General and administrative | 644 | 571 | |
Depreciation and amortization | 1,496 | 1,442 | |
Total operating expenses | 5,906 | 5,477 | |
Income from operations | 3,748 | 4,250 | |
Commercial Segment [Member] | Rental Income [Member] | |||
Total revenues | 9,654 | 9,727 | |
Residential Segment [Member] | |||
Total revenues | 26,106 | 23,940 | |
Assets | 948,495 | $ 935,664 | |
Interest Expense, Operating and Nonoperating | 9,216 | 7,675 | |
Payments to Acquire Property, Plant, and Equipment | 19,719 | 9,489 | |
Interest expense | 9,216 | 7,675 | |
Property operating expenses | 7,372 | 6,884 | |
Real estate taxes and insurance | 4,620 | 6,287 | |
General and administrative | 2,907 | 2,722 | |
Depreciation and amortization | 5,883 | 5,383 | |
Total operating expenses | 20,782 | 21,276 | |
Income from operations | 5,324 | 2,664 | |
Residential Segment [Member] | Rental Income [Member] | |||
Total revenues | $ 26,106 | $ 23,940 |
Note 10 - Subsequent Events (De
Note 10 - Subsequent Events (Details Textual) | May 30, 2024 $ / shares |
Dividends Payable, Amount Per Share | $ 0.095 |