Highlands REIT (HHDS) 10-K 15 Mar 23 2022 FY Annual report Financial data

Cover

Cover - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Mar. 14, 2023	Jun. 30, 2022
Document and Entity Information [Abstract]
Entity Filer Category	10-K
Document Annual Report	true
Document Transition Report	false
Entity File Number	000-55580
Entity Registrant Name	HIGHLANDS REIT, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	81-0862795
Entity Address, Address Line One	1 South Dearborn Street
Entity Address, Address Line Two	20th Floor
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60603
City Area Code	312
Local Phone Number	583-7990
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Well-known Seasoned Issuer	No
Entity Shell Company	false
Entity Public Float			$ 256.8
Entity Common Stock, Shares Outstanding		888,242,728
Entity Central Index Key	0001661458
Document Period End Date	Dec. 31, 2022
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Part III of this Annual Report on Form 10-K incorporates by reference portions of the registrant’s Proxy Statement for its 2023 Annual Meeting of Stockholders expected to be held on June 8, 2023.

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Auditor Information [Abstract]
Auditor Location	Chicago, Illinois
Auditor Firm ID	248
Auditor Name	GRANT THORNTON LLP

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investment properties
Land	$ 79,726	$ 83,168
Building and other improvements	272,232	270,387
Construction in progress	484	6,542
Total	352,442	360,097
Less accumulated depreciation	(76,888)	(67,478)
Net investment properties	275,554	292,619
Cash and cash equivalents	26,025	18,321
Restricted cash and escrows	1,893	3,689
Accounts receivable (net of allowance of $104 and $153 as of December 31, 2022 and 2021, respectively)	6,265	2,739
Deferred costs and other assets, net	5,377	3,645
Total assets	315,114	321,013
Liabilities
Debt, net	61,658	62,130
Accounts payable and accrued expenses	11,084	9,526
Other liabilities	2,015	2,820
Total liabilities	74,757	74,476
Commitments and contingencies (See note 12)
Stockholders’ Equity
Common stock, $0.01 par value, 1,000,000 shares authorized, 888,243 and 885,222 shares issued and outstanding as of December 31, 2022 and 2021, respectively	8,882	8,852
Additional paid-in capital	1,412,637	1,411,818
Accumulated distributions in excess of net income	(1,181,567)	(1,173,905)
Non-controlling interests	240,357	246,537
Accumulated Other Comprehensive Income (Loss), Net of Tax	326	(202)
Stockholders' Equity Attributable to Parent	240,278	246,563
Stockholders' Equity Attributable to Noncontrolling Interest	79	(26)
Total liabilities and equity	$ 315,114	$ 321,013

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for accounts and rent receivables	$ 104	$ 153
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	888,243,000	885,222,000
Common stock, shares outstanding	888,243,000	885,222,000

Combined Consolidated Statement

Combined Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenues
Total revenues	$ 31,356	$ 28,629
Expenses
Property operating expenses	8,794	8,195
Real estate taxes	5,597	5,557
Depreciation and amortization	10,413	10,586
General and administrative expenses	11,656	12,716
Provision for asset impairment	0	1,412
Total expenses	36,460	38,466
Loss on sale of investment properties	(6)	0
Loss from operations	(5,110)	(9,837)
Interest income	140	30
Interest expense	(2,680)	(3,251)
Net loss	(7,650)	(13,058)
Net (income) loss attributable to non-controlling interests	(12)	12
Net loss attributable to Highlands REIT, Inc. common stockholders	$ (7,662)	$ (13,046)
Net income per common share, basic (in dollars per share)	$ (0.01)	$ (0.01)
Net income per common share, diluted (in dollars per share)	$ (0.01)	$ (0.01)
Weighted average number of common shares outstanding, basic (in shares)	885,540,000	881,388,000
Weighted average number of common shares outstanding, diluted (in shares)	885,540,000	881,388,000
Unrealized gain on derivatives	$ 621	$ 407
Total other comprehensive income	621	407
Comprehensive loss	(7,029)	(12,651)
Comprehensive income attributable to non-controlling interests	(105)	(49)
Comprehensive loss attributable to Highlands REIT, Inc. common stockholders	(7,134)	(12,700)
Other property income
Revenues
Total revenues	920	937
Lease income
Revenues
Total revenues	$ 30,436	$ 27,692

Combined Consolidated Stateme_2

Combined Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Distributions in Excess of Net Income	Accumulated Other Comprehensive Income	Parent [Member]	Non-controlling interests
Beginning balance (in shares) at Dec. 31, 2020		877,759
Beginning balance at Dec. 31, 2020	$ 257,063	$ 8,778	$ 1,409,767	$ (1,160,859)	$ (548)	$ 257,138	$ (75)
Net income	(13,058)			(13,046)		(13,046)	(12)
Other Comprehensive Income (Loss), Net of Tax	407				346	346	61
Share-based compensation (in shares)		7,463
Non-controlling interest equity contributions	2,125	$ 74	2,051			2,125
Ending balance (in shares) at Dec. 31, 2021		885,222
Ending balance at Dec. 31, 2021	246,537	$ 8,852	1,411,818	(1,173,905)	(202)	246,563	(26)
Net income	(7,650)			(7,662)		(7,662)	12
Other Comprehensive Income (Loss), Net of Tax	621				528	528	93
Share-based compensation (in shares)		3,021
Non-controlling interest equity contributions	849	$ 30	819			849
Ending balance (in shares) at Dec. 31, 2022		888,243
Ending balance at Dec. 31, 2022	$ 240,357	$ 8,882	$ 1,412,637	$ (1,181,567)	$ 326	$ 240,278	$ 79

Consolidated Statements of Cash

Consolidated Statements of Cash Flow - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net loss	$ (7,650)	$ (13,058)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	10,413	10,586
Amortization of above and below market leases, net	(24)	(85)
Amortization of debt discounts and financing costs	160	221
Straight-line rental income	(2,840)	(294)
Write-off of debt issuance costs	0	225
Loss on sale of investment properties, net	6	0
Provision for asset impairment	0	1,412
Stock-based compensation expense	1,467	3,852
Changes in assets and liabilities:
Accounts receivable, net	(686)	485
Deferred costs and other assets, net	24	270
Accounts payable and accrued expenses	1,558	(3,427)
Other liabilities	65	30
Net cash flows provided by operating activities	2,493	217
Cash flows from investing activities:
Capital expenditures and tenant improvements	(2,624)	(7,724)
Proceeds from sale of investment properties, net	8,938	0
Payment of leasing fees	(1,649)	(1,316)
Net cash flows provided by (used in) investing activities	4,665	(9,040)
Cash flows from financing activities:
Payment of debt issuance costs	(222)	0
Proceeds from debt	9,265	0
Payoff of debt	(8,677)	(20,000)
Principal payments of debt	(998)	(1,077)
Payment for tax withholding for share-based compensation	(618)	(1,727)
Net cash flows used in financing activities	(1,250)	(22,804)
Net increase (decrease) in cash and cash equivalents and restricted cash and escrows	5,908	(31,627)
Cash and cash equivalents and restricted cash and escrows, at beginning of year	22,010	53,637
Cash and cash equivalents	26,025	18,321
Restricted cash	1,893	3,689
Cash and cash equivalents and restricted cash and escrows, at end of year	27,918	22,010
Supplemental disclosure of cash flow information:
Cash paid for interest	2,526	2,872
Supplemental schedule of non-cash activities:
Accruals for capital costs and investment in development	$ 1,155	$ 414

Organization

Organization	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Highlands REIT, Inc. (“Highlands”), which was formed in December 2015, is a Maryland corporation with a portfolio of investment properties including multi-family, retail, office and industrial properties, a correctional facility and unimproved land. Prior to April 28, 2016, Highlands was a wholly-owned subsidiary of InvenTrust Properties Corp. (“InvenTrust” and formerly known as Inland American Real Estate Trust, Inc.), its former parent. Unless stated otherwise or the context otherwise requires, the terms “we,” “our” and “us” and references to the “Company” refer to Highlands and its consolidated subsidiaries. On April 28, 2016, Highlands spun-off from InvenTrust through a pro rata distribution by InvenTrust of 100% of the outstanding shares of common stock, $0.01 par value per share (the “Common Stock”), of Highlands to holders of record of InvenTrust's common stock as of the close of business on April 25, 2016 (the “Record Date”). Each holder of record of InvenTrust's common stock received one share of Common Stock for every one share of InvenTrust's common stock held at the close of business on the Record Date (the “Distribution”). As a result, Highlands became an independent, self-advised, non-traded public company. Highlands has elected to be taxed, and currently qualifies, as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code") for U.S. federal income tax purposes commencing with Highlands' short taxable year ending December 31, 2016. Each asset is owned by a separate legal entity, which maintains its own books and financial records, and each entity’s assets are not available to satisfy the liabilities of other affiliated entities, except as otherwise disclosed in Note 7. With the exception of one asset we own through a variable interest entity with a third-party partner (the “Corvue Venture”), we are the sole owner of each of these separate legal entities. As of December 31, 2022, we have an approximate 85% interest in the Corvue Venture and have funded equity contributions to the Corvue Venture in the approximate amount of $9,000. See Note 2 for additional information regarding the basis of presentation of the Corvue Venture, which is consolidated in the accompanying consolidated financial statements. As of December 31, 2022 and 2021, the Company owned 19 and 20 investment properties, respectively and one parcel of unimproved land. Impact of COVID-19 Pandemic The impact of the COVID-19 pandemic was not material during the years ended December 31, 2022 and 2021.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The accompanying consolidated financial statements include the accounts of Highlands and its consolidated subsidiaries. Highlands consolidates its wholly-owned subsidiaries and any other entities which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if Highlands is the primary beneficiary of a variable interest entity (“VIE”). The portions of the equity and net income of consolidated subsidiaries that are not attributable to the Company are presented separately as amounts attributable to non-controlling interests in our consolidated financial statements. Entities which Highlands does not control and entities which are VIEs in which Highlands is not a primary beneficiary, if any, are accounted for under appropriate GAAP. Highlands' subsidiaries generally consist of limited liability companies (“LLCs”). The effects of all significant intercompany transactions have been eliminated. Reclassifications The Company has made certain reclassifications to the consolidated balance sheets and consolidated statements of cash flows as of December 31, 2021, to conform to the 2022 presentation. Consolidation A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. Under Accounting Standards Codification (“ASC”) 810 - Consolidation, an entity that holds a variable interest in a VIE and meets certain requirements is considered the primary beneficiary of the VIE and is required to consolidate the VIE in its consolidated financial statements. In order to be considered the primary beneficiary of a VIE, an entity must hold a variable interest in the VIE and have both the power to direct the activities that most significantly impact the economic performance of the VIE, and the right to receive benefits from, or the obligation to absorb losses of, the VIE that could be potentially significant to the VIE. As of December 31, 2022 and 2021, we have determined we are the primary beneficiary of one VIE, the Corvue Venture, and have consolidated the operations of this entity in the accompanying consolidated financial statements. We reviewed the operating agreement of the Corvue Venture in order to determine our rights and the rights of our third-party partner, including whether those rights are protective or participating. We have determined we are the primary beneficiary of the Corvue Venture because we have (a) the power to direct the activities that most significantly impact the economic performance of the Corvue Venture, (b) the obligation to absorb the losses that could be significant to the Corvue Venture and (c) the right to receive the benefits that could be significant to the Corvue Venture. Included in total assets and liabilities on the Company’s consolidated balance sheets as of December 31, 2022 is $24,926 and $18,028, respectively, related to the Corvue Venture. Included in total assets and liabilities on the Company’s consolidated balance sheets as of December 31, 2021 is $25,396 and $18,521, respectively, related to the Corvue Venture. The assets of the Corvue Venture may only be used to settle obligations of the Corvue Venture and the creditors of the Corvue Venture have no recourse to the general credit of the Company. Revenue Recognition The Company accounts for leases under the provisions of ASC 842. The Company commences revenue recognition on leases when the lessee takes possession of, or controls the physical use of, the leased asset, unless the lessee is constructing improvements for which we are deemed to be the owner for accounting purposes. If we are deemed the owner for accounting purposes, the leased asset is the finished space and revenue recognition commences when the lessee takes possession of it, typically when the improvements are substantially complete. Alternatively, if the lessee is deemed to be the owner of the improvements for accounting purposes, then the leased asset is the unimproved space, and any tenant improvement allowances funded under the lease are treated as lease incentives which reduce lease income recognized over the lease term, and we commence revenue recognition when the lessee takes possession of the unimproved space. The determination of who owns the tenant improvements, for accounting purposes, is based on contractual rights and is subject to significant judgment. In making that determination, we consider all of the following factors. No one factor, however, necessarily establishes its determination. • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements; • the uniqueness of the improvements; • the expected economic life of the tenant improvements relative to the length of the lease; and • who constructs or directs the construction of the improvements. Rental income is recognized on a straight-line basis over the term of each lease. The difference between rental income earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable and is included as a component of accounts receivable in the accompanying consolidated balance sheets. We recognize cost reimbursement income from pass-through expenses on an accrual basis over the periods in which the expenses were incurred. Pass-through expenses are comprised of real estate taxes, operating expenses and common area maintenance costs which are reimbursed by tenants in accordance with specific allowable costs per tenant lease agreements. Upon adoption of ASU 2016-02, we elected not to bifurcate lease contracts into lease and non-lease components, since the timing and pattern of revenue is not materially different and the non-lease components are not the primary component of the lease. Accordingly, both lease and non-lease components are presented in lease income The Company reviews the collectability of amounts due from its tenants on a regular basis. Such reviews consider the tenant's financial condition and payment history and other economic conditions impacting the tenant. Changes in collectability occur when the Company no longer believes it is probable that substantially all the lease payments will be collected over the term of the lease. If collection is not probable, regardless of whether the Company has entered into an amendment to provide the tenant with COVID-19 related rent relief, the lease payments will be accounted for on a cash basis, and revenue will be recorded as cash is received. If reassessed, and the collection of substantially all of the lease payments from the tenant becomes probable, the accrual basis of revenue recognition is reestablished. The Company records lease termination income if there is a signed termination agreement, all of the conditions of the agreement have been met and amounts due are considered collectible. Acquisition of Real Estate We evaluate the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive loss. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and amortized over the useful life of the acquired assets. Generally, acquisition of real estate qualifies as an asset acquisition. We allocate the purchase price of real estate to land, building, other building improvements, tenant improvements, and intangible assets and liabilities (such as the value of above- and below-market leases and in-place leases). The values of above- and below-market leases are recorded as intangible assets, net, and intangible liabilities, net, respectively, in the consolidated balance sheets, and are amortized as either a decrease (in the case of above-market leases) or an increase (in the case of below-market leases) to lease income over the remaining term of the associated tenant lease. The values associated with in-place leases are recorded in intangible assets, net in the consolidated balance sheets and are amortized to depreciation and amortization expense in the consolidated statements of operations and comprehensive loss over the remaining lease term. The difference between the contractual rental rates and our estimate of market rental rates is measured over a period equal to the remaining non-cancelable term of the leases, including below-market renewal options for which exercise of the renewal option appears to be reasonably assured. The remaining term of leases with renewal options at terms below market reflect the assumed exercise of such below-market renewal options and assume the amortization period would coincide with the extended lease term. Real Estate Capitalization and Depreciation Real estate is reflected at cost less accumulated depreciation. Ordinary repairs and maintenance are expensed as incurred. Depreciation expense is computed using the straight line method. Building and other improvements are depreciated based upon estimated useful lives of 30 years for building and improvements and 5-15 years for furniture, fixtures and equipment and site improvements. Tenant improvements are amortized on a straight line basis over the lesser of the life of the tenant improvement or the lease term as a component of depreciation and amortization expense. Leasing fees are amortized on a straight-line basis over the life of the related lease as a component of depreciation and amortization expense. Loan fees are amortized on a straight-line basis, which approximates the effective interest method, over the life of the related loan as a component of interest expense. Direct and indirect costs that are clearly related to the construction and improvements of investment properties are capitalized. Costs incurred for property taxes and insurance are capitalized during periods in which activities necessary to get the asset ready for its intended use are in progress. Interest costs are also capitalized during such periods. Once the improvements are ready for their intended use, the amounts are reclassified to the appropriate fixed asset accounts. Depreciation begins when the improvement is placed in service. Sale of Real Estate We recognize gains and losses from sales of investment properties and land in accordance with FASB ASC 610-20, “Gains and Losses From the Derecognition of Nonfinancial Assets”. We recognize gains and losses from sales of investment properties and land when we transfer control of an investment property and when it is probable that we will collect substantially all of the related consideration. Assets Held for Sale A long-lived asset (disposal group) to be sold shall be classified as held for sale in the period in which all of the following criteria are met: • Management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); • The asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups); • An active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; • The sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale, within one year, except as permitted by paragraph 360-10-45-11; • The asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value. The price at which a long-lived asset (disposal group) is being marketed is indicative of whether the entity currently has the intent and ability to sell the asset (disposal group). A market price that is reasonable in relation to fair value indicates that the asset (disposal group) is available for immediate sale, whereas a market price in excess of fair value indicates that the asset (disposal group) is not available for immediate sale; and • Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. If all of the above criteria are met, the Company classifies the investment property as held for sale. On the day that these criteria are met, the Company suspends depreciation on the investment properties held for sale, including depreciation for tenant improvements and additions, as well as on the amortization of acquired in-place leases. The investment properties and liabilities associated with those investment properties that are held for sale are classified separately on the consolidated balance sheets for the most recent reporting period and recorded at the lesser of the carrying value or fair value less costs to sell. There were no assets held for sale on the consolidated balance sheets as of December 31, 2022 and 2021. If the sale represents a strategic shift that has (or will have) a major effect on the Company's results of operations, the income and expenses for the period are classified as discontinued operations on the consolidated statement of operations and comprehensive income for all periods presented. Impairment of Real Estate The Company assesses the carrying values of the respective long-lived assets, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable, such as a reduction in the expected holding period of the asset. If it is determined that the carrying value is not recoverable because the undiscounted cash flows do not exceed the carrying value, the Company records an impairment loss to the extent that the carrying value exceeds the investment property's fair value. The valuation and possible subsequent impairment of investment properties is a significant estimate that can and does change based on the Company’s continuous process of analyzing each asset and reviewing assumptions about uncertain inherent factors, as well as the economic condition of the asset at a particular point in time. The use of projected future cash flows and related holding period is based on assumptions that are consistent with the estimates of future expectations and the strategic plan the Company uses to manage its underlying business. However, assumptions and estimates about future cash flows and capitalization rates are complex and subjective. Changes in economic and operating conditions and the Company’s ultimate investment intent that occur subsequent to the impairment analyses could impact these assumptions and result in future impairment charges of the real estate assets. The Company did not record impairments during the year ended December 31, 2022 and recorded $1,412 during the year ended December 31, 2021. See Note 8 to the consolidated financial statements for additional information. Earnings Per Share Basic earnings per common share is calculated by dividing net income attributable to Highlands REIT, Inc. common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to Highlands REIT, Inc. common stockholders by the weighted-average number of common shares outstanding during the period, plus any additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Going Concern Basis of Accounting When preparing financial statements for each annual and interim reporting period, management has the responsibility to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. In making its evaluation, the Company considers, but is not limited to, any risks and/or uncertainties to its results of operations, contractual obligations in the form of near-term debt maturities, dividend requirements, or other factors impacting the Company’s liquidity and capital resources. No conditions or events that raised substantial doubt about the ability to continue as a going concern within one year were identified as of the issuance date of the financial statements contained in this Annual Report on Form 10-K. Recently Issued Accounting Pronouncements In January 2021 and March 2020, the FASB issued ASU 2021-01 and ASU 2020-04, respectively, “Reference Rate Reform (Topic 848)”. These pronouncements contain practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and may be elected over time as reference rate reform activities occur. During March 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. In December 2022, the FASB issued ASU 2022-06, "Deferral of the Sunset Date of Topic 848" ("ASU 2022-06") which was issued to defer the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform to December 31, 2024. ASU 2022-06 is effective immediately for all companies. ASU 2022-06 did not have an impact on the Company's consolidated financial statements for the year ended December 31, 2022. Recently issued accounting standards or pronouncements not discussed herein have been excluded because they are either not relevant to the Company, or are not expected to have, or did not have, a material effect on the consolidated financial statements of the Company.

Disposed Investment Properties

Disposed Investment Properties	12 Months Ended
	Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Disposed Investment Properties	Disposed Investment Properties The following table reflects the investment property dispositions during the year ended December 31, 2022. Investment Property Location Disposition Date Gross Disposition Price Sale Proceeds, Net Loss on Sale State Street Market Rockford, IL March 10, 2022 $ 9,000 $ 8,938 $ (6) There were no investment property dispositions during the year ended December 31, 2021

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: Year ended December 31, 2022 2021 Accrued real estate taxes $ 6,430 $ 6,593 Accrued compensation 742 1,140 Accrued interest payable 208 215 Other accrued expenses 3,704 1,578 Total accounts payable and accrued expenses $ 11,084 $ 9,526

Leases

Leases	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Leases	Leases Leasing as a lessor We lease multi-family investment properties under operating leases with terms of generally one year or less. We lease commercial investment properties under operating leases with remaining lease terms that range from less than one year to fifteen years as of December 31, 2022 and from less than one year to sixteen years as of December 31, 2021. Lease income related to the Company's operating leases is comprised of the following: Year ended December 31, 2022 2021 Lease income related to fixed lease payments $ 25,603 $ 23,527 Lease income related to variable lease payments 4,833 4,165 Total lease income $ 30,436 $ 27,692 Future Minimum Rental Income As of December 31, 2022, commercial operating leases provide for future minimum rental income, assuming no expiring leases are renewed, as follows. Apartment leases are not included as the terms are generally for one year or less. 2023 $ 9,375 2024 9,288 2025 8,431 2026 8,139 2027 7,287 Thereafter 44,921 Total $ 87,441 Leasing as a lessee We lease a portion of the land underlying one of our retail assets, Sherman Plaza, from a third party through a ground lease covering such land with a lease term expiring in October 2042. Upon adoption of ASU 2016-02, we recognized a right of use asset (included in deferred costs and other assets, net) and lease liability (included in other liabilities). At December 31, 2022, the balances were $274 and were recorded in the consolidated balance sheets. We used a discount rate of approximately 4.5%, reflecting the Company's incremental borrowing rate. The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on our operating ground lease at December 31, 2022 and a reconciliation of those cash flows to the operating lease liability. 2023 $ 21 2024 21 2025 21 2026 21 2027 21 Thereafter 310 Total $ 415 Imputed interest (141) Lease liability $ 274
Leases	Leases Leasing as a lessor We lease multi-family investment properties under operating leases with terms of generally one year or less. We lease commercial investment properties under operating leases with remaining lease terms that range from less than one year to fifteen years as of December 31, 2022 and from less than one year to sixteen years as of December 31, 2021. Lease income related to the Company's operating leases is comprised of the following: Year ended December 31, 2022 2021 Lease income related to fixed lease payments $ 25,603 $ 23,527 Lease income related to variable lease payments 4,833 4,165 Total lease income $ 30,436 $ 27,692 Future Minimum Rental Income As of December 31, 2022, commercial operating leases provide for future minimum rental income, assuming no expiring leases are renewed, as follows. Apartment leases are not included as the terms are generally for one year or less. 2023 $ 9,375 2024 9,288 2025 8,431 2026 8,139 2027 7,287 Thereafter 44,921 Total $ 87,441 Leasing as a lessee We lease a portion of the land underlying one of our retail assets, Sherman Plaza, from a third party through a ground lease covering such land with a lease term expiring in October 2042. Upon adoption of ASU 2016-02, we recognized a right of use asset (included in deferred costs and other assets, net) and lease liability (included in other liabilities). At December 31, 2022, the balances were $274 and were recorded in the consolidated balance sheets. We used a discount rate of approximately 4.5%, reflecting the Company's incremental borrowing rate. The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on our operating ground lease at December 31, 2022 and a reconciliation of those cash flows to the operating lease liability. 2023 $ 21 2024 21 2025 21 2026 21 2027 21 Thereafter 310 Total $ 415 Imputed interest (141) Lease liability $ 274

Intangible Assets and Liabiliti

Intangible Assets and Liabilities	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Liabilities	Intangible Assets and Liabilities The following table summarizes the Company's identified intangible liabilities, included in other liabilities on the accompanying consolidated balance sheets as of December 31, 2022 and 2021. The Company had no unamortized intangible assets as of December 31, 2022 and 2021. As of December 31, 2022 2021 Acquired below market leases $ 908 $ 2,629 Accumulated amortization (883) (1,971) Intangible liabilities, net $ 25 $ 658 The portion of the purchase price allocated to acquired above market lease costs and acquired below market lease costs are amortized on a straight-line basis over the life of the related lease, including the respective renewal period for below market lease costs with fixed rate renewals, as an adjustment to lease income. Amortization pertaining to the above market lease costs is applied as a reduction to lease income. Amortization pertaining to the below market lease costs is applied as an increase to lease income. The portion of the purchase price allocated to acquired in-place lease intangibles is amortized on a straight line basis over the life of the related lease and is recorded as amortization expense. The following table summarizes the amortization related to acquired below market lease costs and acquired in-place lease intangibles for the years ended December 31, 2022 and 2021. Year ended December 31, 2022 2021 Amortization of: Acquired below market lease $ 24 $ 85 Net revenues increase $ 24 $ 85 Acquired in-place lease intangibles $ — $ 36 The following table presents the amortization during the next five years and thereafter related to intangible assets and liabilities as of December 31, 2022. There were no unamortized intangible assets as of December 31, 2022. 2023 2024 2025 2026 2027 Thereafter Total Amortization of: Acquired below market lease $ 10 $ 10 $ 5 $ — $ — $ — $ 25 Net revenues increase $ 10 $ 10 $ 5 $ — $ — $ — $ 25

Debt

Debt	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Debt	Debt Total debt outstanding as of December 31, 2022 and 2021 was as follows: 2022 2021 Debt, gross $ 62,411 $ 62,821 Mortgage discount (212) (257) Deferred financing costs, net (541) (434) Total Debt, net $ 61,658 $ 62,130 As of December 31, 2022, the Company's outstanding mortgage indebtedness included six mortgage loans with various maturities through July 2032, as follows: For the year ended December 31, As of December 31, 2022 Weighted average 2023 $ 17,492 3.28 % (1) 2024 — — % 2025 — — % 2026 24,253 4.56 % 2027 11,401 3.99 % Thereafter 9,265 4.74 % Total $ 62,411 4.12 % (1) See below for discussion of the swap agreement entered into with the mortgage loan obtained in connection with the acquisition of the Locale asset. The weighted average interest rate reflected is the strike rate. The Company obtained two loans on June 30, 2022 which were each secured by a mortgage encumbering one of the Company's multi-family assets. The loan secured by a mortgage on Kenilworth Court has a principal amount of $3,784, and the loan secured by a mortgage on The Lafayette has a principal amount of $5,481. Both loans mature on July 1, 2032, bear interest at a fixed rate of 4.74% and require interest-only payment for the duration of their 10-year term. The Company's mortgage on The Locale matures September 1, 2023. The principal balance of this mortgage was $17,492 at December 31, 2022. Prior to maturity, the Company expects it will exercise the one-year extension option provided for in the loan documents, which requires, among other criteria, that, at the time of extension, the mortgage is not in default and a minimum debt service coverage ratio and minimum loan to value ratio are met. The Company's ability to pay off the mortgages when they become due is dependent upon the Company's ability either to refinance the related mortgage debt or to sell the related asset. With respect to each mortgage loan, if the applicable wholly-owned property-owning subsidiary is unable to refinance or sell the related asset, or in the event that the estimated asset value is less than the mortgage balance, the applicable wholly-owned property-owning subsidiary may, if appropriate, satisfy a mortgage obligation by transferring title of the asset to the lender or permitting a lender to foreclose. As of December 31, 2022 and 2021, none of our mortgage debt was recourse to the Company, although Highlands or its subsidiaries may act as guarantor under customary, non-recourse, carve-out guarantees in connection with obtaining mortgage loans on certain of our investment properties. The loan documents governing the mortgage that encumbered State Street Market included a “cash trap” provision that was triggered when DICK'S Sporting Goods, which was an anchor tenant at the investment property, failed to renew its lease agreement. The lender exercised its right to trigger this “cash trap” provision, and, beginning in the fourth quarter of 2020, all of the cash flows from State Street Market which would otherwise have been available for our use were trapped into a blocked account controlled by the lender pending approval of a substitute lease or repayment of the loan. The Company sold the State Street Market asset on March 10, 2022 and the mortgage, with an outstanding principal balance of $8,677 at the time of sale, was simultaneously repaid. The funds previously trapped and held by the lender, along with all required lender escrows, totaling $2.0 million, were returned to the Company in April 2022. Some of the mortgage loans require compliance with certain covenants, such as debt service coverage and net worth ratios. As of December 31, 2022 and 2021, the Company is in compliance with such covenants. Termination of Credit Agreement On January 21, 2021, the Company repaid $5,000 of the outstanding principal balance of its secured revolving credit facility (the "Revolving Credit Loan") under the Company's Credit Agreement, previously entered into on February 15, 2019 with Huntington National Bank (the "Credit Agreement") and on March 29, 2021, repaid in full all of the remaining outstanding indebtedness related to the Revolving Credit Loan, consisting of approximately $15,000 of principal plus accrued and unpaid interest thereon. The Credit Agreement and related security interests, and all commitments thereunder, were terminated in conjunction with such payment in full. LIBOR Reform Following announcements by the United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, and ICE Benchmark Administration Limited, which administers LIBOR’s publication, publication of most LIBOR settings ceased after December 31, 2021. Publication of the remaining U.S. dollar LIBOR settings is expected to cease after June 30, 2023. As a result, the Federal Reserve Board and the Federal Reserve Bank of New York organized the Alternative Reference Rates Committee ("ARRC"), which identified the Secured Overnight Financing Rate ("SOFR") as its preferred alternative rate for USD LIBOR in derivatives and other financial contracts. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities, and the Federal Reserve Bank of New York started to publish SOFR in April 2018. The discontinuation, reform or replacement of LIBOR or any other benchmark rates may have an unpredictable impact on contractual mechanics in the credit markets or cause disruption to the broader financial markets and could have an adverse effect on LIBOR-based interest rates on our current or future debt obligations. As of December 31, 2022, the Company had one variable-rate mortgage with an interest rate swap to fix the rate at 3.28%. The derivative instrument had an original notional amount of $18.8 million and is indexed to one-month USD-LIBOR. In December 2022, the Company completed an amendment to the mortgage loan agreement to replace LIBOR and establish SOFR that has been selected by the lender as the alternate rate for this mortgage and interest rate swap. The Company did not have a material impact to the Company's consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements In accordance with ASC 820, Fair Value Measurement and Disclosures, the Company defines fair value based on the price that would be received upon sale of an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: • Level 1 - Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. • Level 2 - Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company has estimated fair value using available market information and valuation methodologies the Company believes to be appropriate for these purposes. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of amounts that would be realized upon disposition. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of debt funding and, to a limited extent, the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments, described below, are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company may use interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. We do not enter into derivative financial instruments for speculative purposes. As of December 31, 2022 and 2021, we had one derivative financial instrument designated as a cash flow hedge, with an original notional amount of $18,750 and a maturity date of September 1, 2023. This derivative is an interest rate swap that is measured at fair value on a recurring basis. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income on the consolidated balance sheets and is subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. The amounts recorded as other comprehensive income related to our derivative financial instrument was $621 and $407 for the years ended December 31, 2022 and 2021, respectively. Realized gains and losses will be recognized as they accrue in interest expense. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on our variable rate debt. The Company estimates that $383 will be reclassified as an increase to interest expense over the next nine months (maturity date). The table below presents the fair value of the Company’s derivative financial instrument as well as its classification on the consolidated balance sheets as of December 31, 2022 and 2021, respectively. December 31, 2022 Level 1 Level 2 Level 3 Total Derivative financial instruments designated as cash flow hedges: Classified as “Deferred costs and other assets, net” $ — $ 383 $ — $ 383 December 31, 2021 Level 1 Level 2 Level 3 Total Derivative financial instruments designated as cash flow hedges: Classified as “Other liabilities” $ — $ 238 $ — $ 238 The fair value of our derivative financial instrument was determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of the derivative financial instrument. This analysis reflected the contractual terms of the derivative, including the period to maturity, and used observable market-based inputs, including interest rate market data and implied volatilities in such interest rates. While it was determined that the majority of the inputs used to value the derivative fall within Level 2 of the fair value hierarchy under authoritative accounting guidance, the credit valuation adjustments associated with the derivative also utilized Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default. However, as of December 31, 2022, the significance of the impact of the credit valuation adjustments on the overall valuation of the derivative financial instrument was assessed, and it was determined that these adjustments were not significant to the overall valuation of the derivative financial instrument. As a result, it was determined that the derivative financial instrument in its entirety should be classified in Level 2 of the fair value hierarchy. Non-Recurring Measurements In accordance with ASC 360-10, the Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. During the years ended December 31, 2022 and 2021, events and circumstances indicated that certain investment properties might be impaired. However, the Company's estimate of undiscounted cash flows indicated that such carrying values were expected to be recovered. Nonetheless, it is reasonably possible that the estimate of undiscounted cash flows may change in the future resulting in the need to write down assets to fair value. During the year ended December 31, 2021, an impairment adjustment in the amount of $1,412 was recorded on our State Street Market retail asset due to executing a contract for sale of the asset at a price below our book value. The following tables present these assets measured at fair value on a nonrecurring basis as of December 31, 2022 and 2021 aggregated by the level within the fair value hierarchy in which those measurements fall. Methods and assumptions used to estimate the fair value of these assets are described after the table. Fair Value Level 1 Level 2 Level 3 Total Provision for impairment December 31, 2022 Investment properties $ — $ — $ — $ — $ — Fair Value (1) Level 1 Level 2 Level 3 Total Provision for impairment December 31, 2021 Investment properties $ — $ — $ 9,000 $ 9,000 $ 1,412 (1) The estimate of fair value relating to State Street Market was based on negotiations for the sale of the asset to a third party. Financial Liabilities Disclosed at Fair Value on a Recurring Basis The table below presents the fair value of financial instruments presented at carrying values in the consolidated financial statements as of December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Mortgages payable and revolver $ 62,411 $ 57,474 $ 62,821 $ 61,052

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is taxed and operates in a manner that will allow the Company to continue to qualify as a REIT for U.S. federal income tax purposes. So long as it maintains its qualification as a REIT, the Company generally will not be subject to U.S. federal income tax on taxable income that is distributed to stockholders. A REIT is subject to a number of organizational and operational requirements, including a requirement that it distribute at least 90% of its REIT taxable income (subject to certain adjustments) to its stockholders each year. If the Company fails to continue to qualify as a REIT in any taxable year, without the benefit of certain relief provisions, the Company will be subject to U.S. federal and state income tax on its taxable income at regular corporate tax rates and would not be able to re-elect REIT status during the four years following the year of the failure. Although the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and U.S. federal income and excise taxes on its undistributed income. MB REIT is currently disregarded as a separate entity from the Company for U.S. federal income tax purposes and is a Qualified REIT Subsidiary ("QRS") of the Company. All assets, liabilities and items of income, deduction and credit of MB REIT are treated for U.S. federal income tax purposes as those of the Company. During the years ended December 31, 2022 and 2021, no income tax benefit or expense was included in the consolidated statements of operations and comprehensive loss. Uncertain Tax Positions The Company had no unrecognized tax benefits as of or for the years ended December 31, 2022 and 2021. The Company expects no significant increases or decreases in unrecognized tax benefits due to changes in tax positions within one year of December 31, 2022. The Company has no material interest or penalties relating to income taxes recognized in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2022 and 2021 or in the consolidated balance sheets as of December 31, 2022 and 2021. As of December 31, 2022, the Company's, including its predecessors, 2021, 2020 and 2019 tax years remain subject to examination by U.S. and various state tax jurisdictions.

Segment Reporting

Segment Reporting	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Segment Reporting	Segment ReportingGAAP has established guidance for reporting information about a company’s operating segments. The Company monitors and reviews its segment reporting structure in accordance with guidance under FASB ASC Topic 280, Segment Reporting (“ASC 280”) to determine whether any changes have occurred that would impact its reportable segments. The Company currently has two business segments, consisting of multi-family and other. The following table summarizes net operating income by segment for the years ended December 31, 2022 and 2021. For the year ended December 31, 2022 For the year ended December 31, 2021 Total Multi-family Other Total Multi-family Other Lease income $ 30,436 $ 15,727 $ 14,709 $ 27,692 $ 14,768 $ 12,924 Other property income 920 905 15 937 856 81 Total revenues 31,356 16,632 14,724 28,629 15,624 13,005 Operating expenses 14,391 7,691 6,700 13,752 7,410 6,342 Net operating income $ 16,965 $ 8,941 $ 8,024 $ 14,877 $ 8,214 $ 6,663 Non-allocated expenses (1) (22,069) (23,302) Other income and expenses (2) (2,540) (3,221) Provision for asset impairment (3) — (1,412) Loss on sale of investment properties (4) (6) — Net loss $ (7,650) $ (13,058) Balance Sheet Data Real estate assets, net $ 275,554 $ 171,457 $ 104,097 $ 292,619 $ 176,462 $ 116,157 Non-segmented assets (5) 39,560 28,394 Total assets $ 315,114 $ 321,013 Capital expenditures $ 2,624 $ 861 $ 1,763 $ 1,176 $ 478 $ 698 (1) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (2) Other income and expenses consists of interest income and interest expense. (3) Provision for asset impairment is related to State Street Market. (4) Loss on the sale of investment properties is related to State Street Market. (5) Non-segmented assets include cash and cash equivalents, restricted cash and escrows, accounts receivable and deferred costs and other assets, net.

Share Based Compensation

Share Based Compensation	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement, Noncash Expense [Abstract]
Share Based Compensation	Share Based Compensation Incentive Award Plan On April 28, 2016, the board of directors adopted, ratified and approved the Highlands REIT, Inc. 2016 Incentive Award Plan (the “Incentive Award Plan”), under which the Company may grant cash and equity-based incentive awards to eligible employees, directors, and consultants. Prior to the Company’s spin-off from InvenTrust, the board of directors of the Company (then a wholly-owned subsidiary of InvenTrust) adopted, and InvenTrust, as the sole stockholder of Highlands, approved, the Incentive Awards Plan. For the year ended December 31, 2022, the Company granted 5,149 of fully vested shares of common stock with an aggregate value of $1,445 based on a weighted average estimated fair value per share of $0.28. During the year ended December 31, 2021, the Company granted 13,237 of fully vested shares of common stock with an aggregate value of $3,770 based on a weighted average estimated fair value per share of $0.28. Under the Incentive Award Plan, the Company was initially authorized to grant up to 43,000 shares of the Company's common stock pursuant to awards under the plan. On August 12, 2021, the board of directors increased the authorized number of shares of its Common Stock under the Incentive Award Plan from 43,000 to 67,000 pursuant to that certain Second Amendment to Highlands REIT, Inc. 2016 Incentive Award Plan, dated as of August 12, 2021. At December 31, 2022, 16,395 shares were available for future issuance under the Incentive Award Plan. A summary of the Company's stock awards activity as of December 31, 2022 is as follows: Non-Vested stock awards Stock Awards Weighted Average Grant Date Fair Value Balance at January 1, 2022 — $ — Granted 5,149 0.28 Vested (5,149) — Other — Balance at December 31, 2022 — $ — The Company recognized stock-based compensation expense for the years ended December 31, 2022 and 2021 of $1,467 and $3,852, respectively, related to the Incentive Award Plan. For the years ended December 31, 2022 and 2021, the Company paid $618 and $1,727, respectively, related to tax withholding for share-based compensation.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. While the resolution of these matters cannot be predicted with certainty, management believes, based on currently available information, that the final outcome of such matters will not have a material adverse effect on the financial statements of the Company. Highlands has also agreed to indemnify InvenTrust against all taxes related to the Company and its assets, including taxes attributable to periods prior to the separation and distribution. InvenTrust has agreed to indemnify the Company for any taxes attributable to InvenTrust’s or MB REIT’s failure to maintain its qualification as a REIT for any taxable year ending on or before December 31, 2016. In April 2020, the Company executed a lease with Northwestern Medical Group for approximately 29,000 square feet at our Sherman Plaza asset. The lease required a significant amount of landlord work, a tenant allowance and a leasing commission. The total commitment was estimated to be approximately $3,900. As of December 31, 2022, we estimate that remaining costs to be paid under this commitment are approximately $1,300. Rent commenced on this lease in the third quarter of 2021 and payment of the outstanding tenant allowance will be made upon tenant's request and verification that all requirements for payment have been met. In February 2021, the Company executed a lease with Veeco Instruments, Inc. for approximately 97,000 square feet at our Trimble office asset. The lease required a significant tenant allowance and leasing commission. The total cost commitment was estimated to be approximately $9,100. As of December 31, 2022, we estimate that remaining costs to be paid under this commitment are approximately $1,000. While the lease went into effect on January 1, 2022, pursuant to its terms, the tenant was entitled to 12 months of base rent abatement prior to any amounts being payable. A portion of the leasing commission related to this lease remains payable by the Company upon the date the tenant's rent abatement ends, which is January 1, 2023. The remainder of the tenant allowance will be paid by the Company upon the tenant receiving its final certificate of occupancy. In November 2022, the Company executed a lease with XP Power, LLC for approximately 80,000 square feet at our Trimble office asset. Rental payments under this lease are expected to commence in January 2024. The lease requires significant landlord work, a tenant allowance and leasing commission. The total cost commitment is estimated to be approximately $12,300. As of December 31, 2022, we estimate remaining costs under this commitment are approximately $11,300.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsThe Company obtained a loan on January 24, 2023 which was secured by a mortgage encumbering one of the Company's multi-family assets. The loan secured by a mortgage on Tennyson44 has a principal amount of $10,250. The loan matures on February 1, 2030, bears interest at a fixed rate of 4.84% and requires interest-only payments for the duration of the 7-year term.

Schedule III Real Estate and Ac

Schedule III Real Estate and Accumulated Depreciation	12 Months Ended
	Dec. 31, 2022
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]
Schedule III Real Estate and Accumulated Depreciation	Initial Cost (A) Gross amount at which carried at end of period Encumbrance Land Buildings and Improvements Adjustments to Land Basis (B) Adjustments to Building Basis (B) Land Buildings and Improvements Total (C) Accumulated Depreciation (D,E) Date of Completion of Construction or Acquisition Multi-family 1620 Central Street $ — $ 3,075 $ 17,140 $ — $ 126 $ 3,075 $ 17,266 $ 20,341 $ 2,797 2018 Buerger Brothers Lofts — 3,117 7,114 — 366 3,117 7,480 10,597 1,445 2017 Chamber Lofts — 2,797 6,388 — 245 2,797 6,633 9,430 1,281 2017 Kenilworth Court 3,784 2,496 3,203 — 27 2,496 3,230 5,726 496 2018 Tennyson — 1,533 17,410 — 13 1,533 17,423 18,956 2,237 2019 The Detroit and Detroit Terraces 11,401 3,370 15,006 — 64 3,370 15,070 18,440 2,160 2019 The Lafayette 5,481 2,457 7,067 — 207 2,457 7,274 9,731 1,207 2018 The Locale 17,492 4,294 22,461 — 506 4,294 22,967 27,261 3,414 2019 The Muse — 5,303 42,809 — 73 5,303 42,882 48,185 4,768 2019 The Sterling — 1,849 5,407 — 12 1,849 5,419 7,268 507 2020 The View — 7,272 8,862 — 578 7,272 9,440 16,712 1,361 2019 Other Buckhorn Plaza 9,566 1,651 11,770 (35) 2,292 1,616 14,062 15,678 8,452 2006 Hudson Correctional Facility — 1,382 — (1,382) — — — — — 2009 Palazzo Del Lago — 8,938 — — 19 8,938 19 8,957 9 2010 Sherman Plaza — 9,655 30,982 — 12,606 9,655 43,588 53,243 22,525 2006 The Market at Hilliard 14,687 4,432 13,308 — 4,015 4,432 17,323 21,755 9,681 2005 Trimble — 12,732 10,045 — 12,633 12,732 22,678 35,410 4,165 2013 Initial Cost (A) Gross amount at which carried at end of period Encumbrance Land Buildings and Improvements Adjustments to Land Basis (B) Adjustments to Building Basis (B) Land Buildings and Improvements Total (C) Accumulated Depreciation (D,E) Date of Completion of Construction or Acquisition Versacold USA - St. Paul — 3,890 10,093 — — 3,890 10,093 13,983 5,379 2007 Versacold USA - New Ulm — 900 9,359 — — 900 9,359 10,259 4,995 2007 Corporate — — — — 26 — 26 26 9 N/A Totals $ 62,411 $ 81,143 $ 238,424 $ (1,417) $ 33,808 $ 79,726 $ 272,232 $ 351,958 $ 76,888 Notes to Schedule III: The aggregate cost of real estate owned at December 31, 2022 for U.S. federal income tax purposes was approximately $442,987 (unaudited). A. The initial cost to the Company represents the original purchase price of the asset, including amounts incurred subsequent to acquisition which were contemplated at the time the asset was acquired. B. Adjustments to basis include provisions for asset impairments, partial dispositions and costs capitalized subsequent to acquisitions. C. Reconciliation of real estate owned: 2022 2021 Balance at January 1 $ 353,555 $ 360,498 Acquisitions and capital improvements 8,676 2,885 Dispositions and write-offs (10,273) — Asset impairments — (9,828) Balance at December 31, $ 351,958 $ 353,555 D. Reconciliation of accumulated depreciation: 2022 2021 Balance at January 1 $ 67,478 $ 65,501 Depreciation expense 10,136 10,393 Dispositions and write-offs (726) — Asset impairments — (8,416) Balance at December 31, $ 76,888 $ 67,478 E. Depreciation is computed based upon the following estimated lives: Buildings and improvements 30 years Tenant improvements Life of the lease Furniture, fixtures, & equipment and site improvements 5-15 years

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Principles of Consolidation	Highlands consolidates its wholly-owned subsidiaries and any other entities which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if Highlands is the primary beneficiary of a variable interest entity (“VIE”). The portions of the equity and net income of consolidated subsidiaries that are not attributable to the Company are presented separately as amounts attributable to non-controlling interests in our consolidated financial statements. Entities which Highlands does not control and entities which are VIEs in which Highlands is not a primary beneficiary, if any, are accounted for under appropriate GAAP. Highlands' subsidiaries generally consist of limited liability companies (“LLCs”). The effects of all significant intercompany transactions have been eliminated.
Reclassifications	Reclassifications The Company has made certain reclassifications to the consolidated balance sheets and consolidated statements of cash flows as of December 31, 2021, to conform to the 2022 presentation.
Consolidation	Consolidation A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. Under Accounting Standards Codification (“ASC”) 810 - Consolidation, an entity that holds a variable interest in a VIE and meets certain requirements is considered the primary beneficiary of the VIE and is required to consolidate the VIE in its consolidated financial statements. In order to be considered the primary beneficiary of a VIE, an entity must hold a variable interest in the VIE and have both the power to direct the activities that most significantly impact the economic performance of the VIE, and the right to receive benefits from, or the obligation to absorb losses of, the VIE that could be potentially significant to the VIE.
Revenue Recognition	Revenue Recognition The Company accounts for leases under the provisions of ASC 842. The Company commences revenue recognition on leases when the lessee takes possession of, or controls the physical use of, the leased asset, unless the lessee is constructing improvements for which we are deemed to be the owner for accounting purposes. If we are deemed the owner for accounting purposes, the leased asset is the finished space and revenue recognition commences when the lessee takes possession of it, typically when the improvements are substantially complete. Alternatively, if the lessee is deemed to be the owner of the improvements for accounting purposes, then the leased asset is the unimproved space, and any tenant improvement allowances funded under the lease are treated as lease incentives which reduce lease income recognized over the lease term, and we commence revenue recognition when the lessee takes possession of the unimproved space. The determination of who owns the tenant improvements, for accounting purposes, is based on contractual rights and is subject to significant judgment. In making that determination, we consider all of the following factors. No one factor, however, necessarily establishes its determination. • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements; • the uniqueness of the improvements; • the expected economic life of the tenant improvements relative to the length of the lease; and • who constructs or directs the construction of the improvements. Rental income is recognized on a straight-line basis over the term of each lease. The difference between rental income earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable and is included as a component of accounts receivable in the accompanying consolidated balance sheets. We recognize cost reimbursement income from pass-through expenses on an accrual basis over the periods in which the expenses were incurred. Pass-through expenses are comprised of real estate taxes, operating expenses and common area maintenance costs which are reimbursed by tenants in accordance with specific allowable costs per tenant lease agreements. Upon adoption of ASU 2016-02, we elected not to bifurcate lease contracts into lease and non-lease components, since the timing and pattern of revenue is not materially different and the non-lease components are not the primary component of the lease. Accordingly, both lease and non-lease components are presented in lease income The Company reviews the collectability of amounts due from its tenants on a regular basis. Such reviews consider the tenant's financial condition and payment history and other economic conditions impacting the tenant. Changes in collectability occur when the Company no longer believes it is probable that substantially all the lease payments will be collected over the term of the lease. If collection is not probable, regardless of whether the Company has entered into an amendment to provide the tenant with COVID-19 related rent relief, the lease payments will be accounted for on a cash basis, and revenue will be recorded as cash is received. If reassessed, and the collection of substantially all of the lease payments from the tenant becomes probable, the accrual basis of revenue recognition is reestablished. The Company records lease termination income if there is a signed termination agreement, all of the conditions of the agreement have been met and amounts due are considered collectible.
Real Estate	Acquisition of Real Estate We evaluate the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive loss. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and amortized over the useful life of the acquired assets. Generally, acquisition of real estate qualifies as an asset acquisition. We allocate the purchase price of real estate to land, building, other building improvements, tenant improvements, and intangible assets and liabilities (such as the value of above- and below-market leases and in-place leases). The values of above- and below-market leases are recorded as intangible assets, net, and intangible liabilities, net, respectively, in the consolidated balance sheets, and are amortized as either a decrease (in the case of above-market leases) or an increase (in the case of below-market leases) to lease income over the remaining term of the associated tenant lease. The values associated with in-place leases are recorded in intangible assets, net in the consolidated balance sheets and are amortized to depreciation and amortization expense in the consolidated statements of operations and comprehensive loss over the remaining lease term. The difference between the contractual rental rates and our estimate of market rental rates is measured over a period equal to the remaining non-cancelable term of the leases, including below-market renewal options for which exercise of the renewal option appears to be reasonably assured. The remaining term of leases with renewal options at terms below market reflect the assumed exercise of such below-market renewal options and assume the amortization period would coincide with the extended lease term. Real Estate Capitalization and Depreciation Real estate is reflected at cost less accumulated depreciation. Ordinary repairs and maintenance are expensed as incurred. Depreciation expense is computed using the straight line method. Building and other improvements are depreciated based upon estimated useful lives of 30 years for building and improvements and 5-15 years for furniture, fixtures and equipment and site improvements. Tenant improvements are amortized on a straight line basis over the lesser of the life of the tenant improvement or the lease term as a component of depreciation and amortization expense. Leasing fees are amortized on a straight-line basis over the life of the related lease as a component of depreciation and amortization expense. Loan fees are amortized on a straight-line basis, which approximates the effective interest method, over the life of the related loan as a component of interest expense. Direct and indirect costs that are clearly related to the construction and improvements of investment properties are capitalized. Costs incurred for property taxes and insurance are capitalized during periods in which activities necessary to get the asset ready for its intended use are in progress. Interest costs are also capitalized during such periods. Once the improvements are ready for their intended use, the amounts are reclassified to the appropriate fixed asset accounts. Depreciation begins when the improvement is placed in service. Sale of Real Estate
Assets Held for Sale	Assets Held for Sale A long-lived asset (disposal group) to be sold shall be classified as held for sale in the period in which all of the following criteria are met: • Management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); • The asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups); • An active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; • The sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale, within one year, except as permitted by paragraph 360-10-45-11; • The asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value. The price at which a long-lived asset (disposal group) is being marketed is indicative of whether the entity currently has the intent and ability to sell the asset (disposal group). A market price that is reasonable in relation to fair value indicates that the asset (disposal group) is available for immediate sale, whereas a market price in excess of fair value indicates that the asset (disposal group) is not available for immediate sale; and • Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
Impairment of Real Estate	Impairment of Real Estate The Company assesses the carrying values of the respective long-lived assets, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable, such as a reduction in the expected holding period of the asset. If it is determined that the carrying value is not recoverable because the undiscounted cash flows do not exceed the carrying value, the Company records an impairment loss to the extent that the carrying value exceeds the investment property's fair value. The valuation and possible subsequent impairment of investment properties is a significant estimate that
Earnings Per Share	Earnings Per Share Basic earnings per common share is calculated by dividing net income attributable to Highlands REIT, Inc. common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to Highlands REIT, Inc. common stockholders by the weighted-average number of common shares outstanding during the period, plus any additional common shares that would have been outstanding if the dilutive potential common shares had been issued.
Going Concern Basis of Accounting	Going Concern Basis of Accounting When preparing financial statements for each annual and interim reporting period, management has the responsibility to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. In making its evaluation, the Company considers, but is not limited to, any risks and/or uncertainties to its results of operations, contractual obligations in the form of near-term debt maturities, dividend requirements, or other factors impacting the Company’s liquidity and capital resources. No conditions or events that raised substantial doubt about the ability to continue as a going concern within one year were identified as of the issuance date of the financial statements contained in this Annual Report on Form 10-K.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In January 2021 and March 2020, the FASB issued ASU 2021-01 and ASU 2020-04, respectively, “Reference Rate Reform (Topic 848)”. These pronouncements contain practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and may be elected over time as reference rate reform activities occur. During March 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. In December 2022, the FASB issued ASU 2022-06, "Deferral of the Sunset Date of Topic 848" ("ASU 2022-06") which was issued to defer the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform to December 31, 2024. ASU 2022-06 is effective immediately for all companies. ASU 2022-06 did not have an impact on the Company's consolidated financial statements for the year ended December 31, 2022. Recently issued accounting standards or pronouncements not discussed herein have been excluded because they are either not relevant to the Company, or are not expected to have, or did not have, a material effect on the consolidated financial statements of the Company.

Disposed Investment Properties

Disposed Investment Properties (Tables)	12 Months Ended
	Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Sales Activity and Operations	The following table reflects the investment property dispositions during the year ended December 31, 2022. Investment Property Location Disposition Date Gross Disposition Price Sale Proceeds, Net Loss on Sale State Street Market Rockford, IL March 10, 2022 $ 9,000 $ 8,938 $ (6)

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consist of the following: Year ended December 31, 2022 2021 Accrued real estate taxes $ 6,430 $ 6,593 Accrued compensation 742 1,140 Accrued interest payable 208 215 Other accrued expenses 3,704 1,578 Total accounts payable and accrued expenses $ 11,084 $ 9,526

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Lease Income	Lease income related to the Company's operating leases is comprised of the following: Year ended December 31, 2022 2021 Lease income related to fixed lease payments $ 25,603 $ 23,527 Lease income related to variable lease payments 4,833 4,165 Total lease income $ 30,436 $ 27,692
Payments to be received under Topic 842	As of December 31, 2022, commercial operating leases provide for future minimum rental income, assuming no expiring leases are renewed, as follows. Apartment leases are not included as the terms are generally for one year or less. 2023 $ 9,375 2024 9,288 2025 8,431 2026 8,139 2027 7,287 Thereafter 44,921 Total $ 87,441
Operating lease liability under Topic 842	The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on our operating ground lease at December 31, 2022 and a reconciliation of those cash flows to the operating lease liability. 2023 $ 21 2024 21 2025 21 2026 21 2027 21 Thereafter 310 Total $ 415 Imputed interest (141) Lease liability $ 274

Intangible Assets and Liabili_2

Intangible Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of identified intangible assets and intangible liabilities	The following table summarizes the Company's identified intangible liabilities, included in other liabilities on the accompanying consolidated balance sheets as of December 31, 2022 and 2021. The Company had no unamortized intangible assets as of December 31, 2022 and 2021. As of December 31, 2022 2021 Acquired below market leases $ 908 $ 2,629 Accumulated amortization (883) (1,971) Intangible liabilities, net $ 25 $ 658
Summary of amortization of identified intangible assets and liabilities	The following table summarizes the amortization related to acquired below market lease costs and acquired in-place lease intangibles for the years ended December 31, 2022 and 2021. Year ended December 31, 2022 2021 Amortization of: Acquired below market lease $ 24 $ 85 Net revenues increase $ 24 $ 85 Acquired in-place lease intangibles $ — $ 36 The following table presents the amortization during the next five years and thereafter related to intangible assets and liabilities as of December 31, 2022. There were no unamortized intangible assets as of December 31, 2022. 2023 2024 2025 2026 2027 Thereafter Total Amortization of: Acquired below market lease $ 10 $ 10 $ 5 $ — $ — $ — $ 25 Net revenues increase $ 10 $ 10 $ 5 $ — $ — $ — $ 25
Summary of accretion income for below market leases	The following table summarizes the amortization related to acquired below market lease costs and acquired in-place lease intangibles for the years ended December 31, 2022 and 2021. Year ended December 31, 2022 2021 Amortization of: Acquired below market lease $ 24 $ 85 Net revenues increase $ 24 $ 85 Acquired in-place lease intangibles $ — $ 36 The following table presents the amortization during the next five years and thereafter related to intangible assets and liabilities as of December 31, 2022. There were no unamortized intangible assets as of December 31, 2022. 2023 2024 2025 2026 2027 Thereafter Total Amortization of: Acquired below market lease $ 10 $ 10 $ 5 $ — $ — $ — $ 25 Net revenues increase $ 10 $ 10 $ 5 $ — $ — $ — $ 25

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of Debt	Total debt outstanding as of December 31, 2022 and 2021 was as follows: 2022 2021 Debt, gross $ 62,411 $ 62,821 Mortgage discount (212) (257) Deferred financing costs, net (541) (434) Total Debt, net $ 61,658 $ 62,130
Scheduled Maturities of Mortgage Indebtedness	As of December 31, 2022, the Company's outstanding mortgage indebtedness included six mortgage loans with various maturities through July 2032, as follows: For the year ended December 31, As of December 31, 2022 Weighted average 2023 $ 17,492 3.28 % (1) 2024 — — % 2025 — — % 2026 24,253 4.56 % 2027 11,401 3.99 % Thereafter 9,265 4.74 % Total $ 62,411 4.12 % (1) See below for discussion of the swap agreement entered into with the mortgage loan obtained in connection with the acquisition of the Locale asset. The weighted average interest rate reflected is the strike rate.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value, Liabilities Measured on Recurring Basis	The table below presents the fair value of the Company’s derivative financial instrument as well as its classification on the consolidated balance sheets as of December 31, 2022 and 2021, respectively. December 31, 2022 Level 1 Level 2 Level 3 Total Derivative financial instruments designated as cash flow hedges: Classified as “Deferred costs and other assets, net” $ — $ 383 $ — $ 383 December 31, 2021 Level 1 Level 2 Level 3 Total Derivative financial instruments designated as cash flow hedges: Classified as “Other liabilities” $ — $ 238 $ — $ 238
Schedule of Assets Measured on a Non-Recurring Basis	The following tables present these assets measured at fair value on a nonrecurring basis as of December 31, 2022 and 2021 aggregated by the level within the fair value hierarchy in which those measurements fall. Methods and assumptions used to estimate the fair value of these assets are described after the table. Fair Value Level 1 Level 2 Level 3 Total Provision for impairment December 31, 2022 Investment properties $ — $ — $ — $ — $ — Fair Value (1) Level 1 Level 2 Level 3 Total Provision for impairment December 31, 2021 Investment properties $ — $ — $ 9,000 $ 9,000 $ 1,412
Schedule of the Fair Value of Financial Instruments	The table below presents the fair value of financial instruments presented at carrying values in the consolidated financial statements as of December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Mortgages payable and revolver $ 62,411 $ 57,474 $ 62,821 $ 61,052

Segment Reporting (Tables)

Segment Reporting (Tables)	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Summary of Net Property Operations	The following table summarizes net operating income by segment for the years ended December 31, 2022 and 2021. For the year ended December 31, 2022 For the year ended December 31, 2021 Total Multi-family Other Total Multi-family Other Lease income $ 30,436 $ 15,727 $ 14,709 $ 27,692 $ 14,768 $ 12,924 Other property income 920 905 15 937 856 81 Total revenues 31,356 16,632 14,724 28,629 15,624 13,005 Operating expenses 14,391 7,691 6,700 13,752 7,410 6,342 Net operating income $ 16,965 $ 8,941 $ 8,024 $ 14,877 $ 8,214 $ 6,663 Non-allocated expenses (1) (22,069) (23,302) Other income and expenses (2) (2,540) (3,221) Provision for asset impairment (3) — (1,412) Loss on sale of investment properties (4) (6) — Net loss $ (7,650) $ (13,058) Balance Sheet Data Real estate assets, net $ 275,554 $ 171,457 $ 104,097 $ 292,619 $ 176,462 $ 116,157 Non-segmented assets (5) 39,560 28,394 Total assets $ 315,114 $ 321,013 Capital expenditures $ 2,624 $ 861 $ 1,763 $ 1,176 $ 478 $ 698 (1) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (2) Other income and expenses consists of interest income and interest expense. (3) Provision for asset impairment is related to State Street Market. (4) Loss on the sale of investment properties is related to State Street Market. (5) Non-segmented assets include cash and cash equivalents, restricted cash and escrows, accounts receivable and deferred costs and other assets, net.

Share Based Compensation (Table

Share Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement, Noncash Expense [Abstract]
Summary of Stock Award Activity	A summary of the Company's stock awards activity as of December 31, 2022 is as follows: Non-Vested stock awards Stock Awards Weighted Average Grant Date Fair Value Balance at January 1, 2022 — $ — Granted 5,149 0.28 Vested (5,149) — Other — Balance at December 31, 2022 — $ —

Organization (Details)

Organization (Details) $ / shares in Units, $ in Thousands	Aug. 16, 2019 USD ($)	Apr. 28, 2016 $ / shares shares	Dec. 31, 2022 property parcel $ / shares	Dec. 31, 2021 property $ / shares
Conversion of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares		$ 0.01	$ 0.01	$ 0.01
Number of assets (in property) | property			19	20
Parcels of land | parcel			1
Corvue Venture
Conversion of Stock [Line Items]
Ownership percentage	85%
Payments to acquire investments | $	$ 9,000
Common stock
Conversion of Stock [Line Items]
Shares issued for each share held at date of spin-off (in shares) | shares		1

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total assets	$ 315,114,000	$ 321,013,000
Liabilities	74,757,000	74,476,000
Assets held for sale	0	0
Provision for asset impairment	$ 0	$ 1,412,000
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Total revenues	Total revenues
Variable Interest Entity, Primary Beneficiary | Corvue Venture
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total assets	$ 24,926,000	$ 25,396,000
Liabilities	$ 18,028,000	$ 18,521,000
Buildings and improvements
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives	30 years
Furniture, fixtures, equipment and site improvements | Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives	5 years
Furniture, fixtures, equipment and site improvements | Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives	15 years

Disposed Investment Propertie_2

Disposed Investment Properties - Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross disposition price	$ 0
Proceeds from sale of investment properties, net	8,938	$ 0
Loss on sale of investment properties	(6)	$ 0
Citizens
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross disposition price	9,000
Proceeds from sale of investment properties, net	8,938
Loss on sale of investment properties	$ (6)

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued real estate taxes	$ 6,430	$ 6,593
Accrued compensation	742	1,140
Accrued interest payable	208	215
Other accrued expenses	3,704	1,578
Total accounts payable and accrued expenses	$ 11,084	$ 9,526

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Lessor, Lease, Description [Line Items]
Lease liability	$ 274
Multi-Family Investment Property
Lessor, Lease, Description [Line Items]
Lease terms	1 year
Apartment Building
Lessor, Lease, Description [Line Items]
Lease terms	1 year
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-02
Lessor, Lease, Description [Line Items]
Discount rate	4.50%
Minimum | Commercial Real Estate
Lessor, Lease, Description [Line Items]
Lease terms	1 year	1 year
Maximum | Commercial Real Estate
Lessor, Lease, Description [Line Items]
Lease terms	15 years	16 years

Leases - Lease Income (Details)

Leases - Lease Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Lease income related to fixed lease payments	$ 25,603	$ 23,527
Lease income related to variable lease payments	4,833	4,165
Lease income	$ 30,436	$ 27,692

Leases - Receivable Maturity (D

Leases - Receivable Maturity (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 9,375
2024	9,288
2025	8,431
2026	8,139
2027	7,287
Thereafter	44,921
Total	$ 87,441

Leases - Operating Lease Liabil

Leases - Operating Lease Liability Maturity (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 21
2024	21
2025	21
2026	21
2027	21
Thereafter	310
Total	415
Imputed interest	(141)
Lease liability	$ 274
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other liabilities

Intangible Assets and Liabili_3

Intangible Assets and Liabilities - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Acquired below market leases	$ 908	$ 2,629
Accumulated amortization	(883)	(1,971)
Total	$ 25	$ 658

Intangible Assets and Liabili_4

Intangible Assets and Liabilities - Lease Amortization, Rental Income Increase, and Lease Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Amortization of:
Acquired below market lease	$ 24	$ 85
Net revenues increase	24	85
Acquired in-place lease
Amortization of:
Intangible assets	$ 0	$ 36

Intangible Assets and Liabili_5

Intangible Assets and Liabilities - Amortization Schedule (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Acquired below market lease
2023	$ 10
2024	10
2025	5
2026	0
2027	0
Thereafter	0
Total	25	$ 658
Net rental income increase, 2022	10
Net rental income increase, 2023	10
Net rental income increase, 2024	5
Net rental income increase, 2025	0
Net rental income increase, 2026	0
Net rental income increase, Thereafter	0
Net rental income increase, Total	$ 25

Debt - Schedule of Debt Outstan

Debt - Schedule of Debt Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Debt, gross	$ 62,411	$ 62,821
Mortgage discount	(212)	(257)
Deferred financing costs, net	(541)	(434)
Debt, net	$ 61,658	$ 62,130

Debt - Scheduled Maturities (De

Debt - Scheduled Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total	$ 62,411	$ 62,821
Mortgages
Debt Instrument [Line Items]
2023	17,492
2024	0
2025	0
2026	24,253
2027	11,401
Thereafter	9,265
Total	$ 62,411
Weighted average interest rate
2023	3.28%
2024	0%
2025	0%
2026	4.56%
2027	3.99%
Thereafter	4.74%
Total	4.12%

Debt - Narrative (Details)

Debt - Narrative (Details) $ in Thousands				12 Months Ended
	Jun. 30, 2022 USD ($) loan	Mar. 29, 2021 USD ($)	Jan. 21, 2021 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Apr. 30, 2022 USD ($)
Debt Instrument [Line Items]
Debt Instrument, Number of Loans | loan	2
Payoff of debt				$ (8,677)	$ (20,000)
Restricted cash				1,893	$ 3,689
Mortgages
Debt Instrument [Line Items]
2023				$ 17,492
Restricted cash						$ 2,000
2023				3.28%
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Repayments of Debt		$ 15	$ 5
Mortgage Loan in Connection with Acquisition of The Locale | Mortgages
Debt Instrument [Line Items]
Mortgage loan				$ 18,800
Extension term				1 year
Loan Secured by Mortgage on Kenilworth Court | Secured Debt
Debt Instrument [Line Items]
Mortgage loan	$ 3,784
Interest rate	4.74%
Debt instrument, term	10 years
Loan Secured by Mortgage on The Lafayette | Secured Debt
Debt Instrument [Line Items]
Mortgage loan	$ 5,481
Interest rate	4.74%
Debt instrument, term	10 years

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) derivative_instrument	Dec. 31, 2021 USD ($) derivative_instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unrealized gain on derivatives	$ 621	$ 407
Cash flow hedge gain (loss)	383
Provision for asset impairment	0	1,412
Fair Value, Measurements, Nonrecurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Provision for asset impairment	$ 0	$ 1,412
Discount rate | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term debt measurement input	0.0744	0.0505
Discount rate | Long-term debt | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term debt measurement input	0.0576	0.0338
Discount rate | Long-term debt | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term debt measurement input	0.0883	0.0687
Interest Rate Swap | Cash Flow Hedging
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of instruments held | derivative_instrument	1	1
Notional amount	$ 18,750

Fair Value Measurements - Deriv

Fair Value Measurements - Derivative Assets (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred costs and other assets	$ 383	$ 238
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred costs and other assets	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred costs and other assets	383	238
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred costs and other assets	$ 0	$ 0

Fair Value Measurements - Non-R

Fair Value Measurements - Non-Recurring Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Provision for asset impairment	$ 0	$ 1,412
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment properties	0	9,000
Provision for asset impairment	0	1,412
Fair Value, Measurements, Nonrecurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment properties	0	0
Fair Value, Measurements, Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment properties	0	0
Fair Value, Measurements, Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment properties	$ 0	$ 9,000

Fair Value Measurements - Not M

Fair Value Measurements - Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable and revolver	$ 62,411	$ 62,821
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable and revolver	$ 57,474	$ 61,052

Income Taxes (Details)

Income Taxes (Details)	Dec. 31, 2022 USD ($)
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 0

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	12 Months Ended
	Dec. 31, 2022 segment
Segment Reporting [Abstract]
Number of business segments (in segments)	2

Segment Reporting - Net Propert

Segment Reporting - Net Property Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Lease income	$ 30,436	$ 27,692
Total revenues	31,356	28,629
Operating expenses	14,391	13,752
Net operating income	16,965	14,877
Provision for asset impairment	0	(1,412)
Loss on sale of investment properties	(6)	0
Net loss	(7,650)	(13,058)
Balance Sheet Data
Total assets	315,114	321,013
Capital expenditures	2,624	1,176
Reconciling items
Segment Reporting Information [Line Items]
Non-allocated expenses	(22,069)	(23,302)
Other income and expenses	(2,540)	(3,221)
Balance Sheet Data
Total assets	39,560	28,394
Operating segments and corporate, non-segment
Balance Sheet Data
Total assets	275,554	292,619
Multi-family | Operating segments
Segment Reporting Information [Line Items]
Total revenues	16,632	15,624
Operating expenses	7,691	7,410
Net operating income	8,941	8,214
Balance Sheet Data
Total assets	171,457	176,462
Capital expenditures	861	478
Other | Operating segments
Segment Reporting Information [Line Items]
Total revenues	14,724	13,005
Operating expenses	6,700	6,342
Net operating income	8,024	6,663
Balance Sheet Data
Total assets	104,097	116,157
Capital expenditures	1,763	698
Other property income
Segment Reporting Information [Line Items]
Total revenues	920	937
Other property income | Multi-family | Operating segments
Segment Reporting Information [Line Items]
Total revenues	905	856
Other property income | Other | Operating segments
Segment Reporting Information [Line Items]
Total revenues	15	81
Lease income
Segment Reporting Information [Line Items]
Total revenues	30,436	27,692
Lease income | Multi-family | Operating segments
Segment Reporting Information [Line Items]
Total revenues	15,727	14,768
Lease income | Other | Operating segments
Segment Reporting Information [Line Items]
Total revenues	$ 14,709	$ 12,924

Share Based Compensation (Detai

Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Aug. 12, 2021	Apr. 28, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payment for tax withholding for share-based compensation	$ 618	$ 1,727
Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,467	3,852
Incentive awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of shares granted		$ 3,770
Number of shares authorized to grant (up to) (in shares)			67,000,000	43,000,000
Shares available for future issuance (in shares)	16,395,000
Stock Awards
Beginning balance (in shares)	0
Granted (in shares)	5,149,000	13,237,000
Vested (in shares)	(5,149,000)
Forfeited (in shares)
Ending balance (in shares)	0	0
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 0
Granted (in dollars per share)	0.28	$ 0.28
Vested (in dollars per share)	0
Forfeited (in dollars per share)	0
Ending balance (in dollars per share)	$ 0	$ 0
Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of shares granted	$ 1,445
Stock Awards
Granted (in shares)	5,149,000
Weighted Average Grant Date Fair Value
Granted (in dollars per share)	$ 0.28

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	1 Months Ended
	Apr. 30, 2020 ft²	Dec. 31, 2022 USD ($)	Nov. 30, 2022 USD ($) ft²	Feb. 28, 2021 USD ($)
Lessor, Lease, Description [Line Items]
Contractual obligation		$ 1,300
Lease not yet commenced, leased area | ft²			80,000
Lease not yet commenced, cost			$ 12,300
Lessee, Operating Lease, Lease Not Yet Commenced, Estimated Remaining Cost		11,300
Veeco Instrument, Inc. Lease
Lessor, Lease, Description [Line Items]
Contractual obligation				$ 9,100
Contractual obligation, re-estimated remaining obligation		1,000
Northwestern Medical Group
Lessor, Lease, Description [Line Items]
Leased area | ft²	29,000
Contractual obligation		$ 3,900
Veeco Instruments, Inc
Lessor, Lease, Description [Line Items]
Leased area | ft²	97,000

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Loan Secured by Mortgage on Tennyson44 - Secured Debt $ in Thousands	Jan. 24, 2023 USD ($)
Subsequent Event [Line Items]
Mortgage loan	$ 10,250
Interest rate	4.84%
Debt instrument, term	7 years

Schedule III Real Estate and _2

Schedule III Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance	$ 62,411
Initial Cost, Land	81,143
Initial Cost, Buildings and Improvements	238,424
Adjustments to Land Basis	(1,417)
Adjustments to Building Basis	33,808
Gross amount at which carried at end of period, Land and Improvements	79,726
Gross amount at which carried at end of period, Buildings and Improvements	272,232
Gross amount at which carried at end of period, Total	351,958	$ 353,555
Accumulated Depreciation	76,888	67,478
Notes to Schedule III
Cost of real estate owned	442,987
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Beginning balance	353,555	360,498
Acquisitions and capital improvements	8,676	2,885
Dispositions and write-offs	(10,273)	0
Asset impairments	0	(9,828)
Ending balance	351,958	353,555
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Beginning balance	67,478	65,501
Depreciation expense	10,136	10,393
Dispositions and write-offs	(726)	0
Asset impairments	0	(8,416)
Ending balance	$ 76,888	$ 67,478
Furniture, fixtures, & equipment and site improvements | Minimum
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Investment in real estate and accumulated depreciation, life used for depreciation	5 years
Furniture, fixtures, & equipment and site improvements | Maximum
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Investment in real estate and accumulated depreciation, life used for depreciation	15 years
Buildings and improvements
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Investment in real estate and accumulated depreciation, life used for depreciation	30 years
Multifamily | 1620 Central Street Evanston, IL | Evanston, Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	$ 3,075
Initial Cost, Buildings and Improvements	17,140
Adjustments to Building Basis	126
Gross amount at which carried at end of period, Land and Improvements	3,075
Gross amount at which carried at end of period, Buildings and Improvements	17,266
Gross amount at which carried at end of period, Total	20,341
Accumulated Depreciation	2,797
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	20,341
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	2,797
Multifamily | Buerger Brothers Lofts Denver, CO | Denver, Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	3,117
Initial Cost, Buildings and Improvements	7,114
Adjustments to Building Basis	366
Gross amount at which carried at end of period, Land and Improvements	3,117
Gross amount at which carried at end of period, Buildings and Improvements	7,480
Gross amount at which carried at end of period, Total	10,597
Accumulated Depreciation	1,445
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	10,597
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	1,445
Multifamily | Chamber Lofts Denver, CO | Denver, Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	2,797
Initial Cost, Buildings and Improvements	6,388
Adjustments to Building Basis	245
Gross amount at which carried at end of period, Land and Improvements	2,797
Gross amount at which carried at end of period, Buildings and Improvements	6,633
Gross amount at which carried at end of period, Total	9,430
Accumulated Depreciation	1,281
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	9,430
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	1,281
Multifamily | Kenilworth Court Denver, CO | Denver, Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance	3,784
Initial Cost, Land	2,496
Initial Cost, Buildings and Improvements	3,203
Adjustments to Building Basis	27
Gross amount at which carried at end of period, Land and Improvements	2,496
Gross amount at which carried at end of period, Buildings and Improvements	3,230
Gross amount at which carried at end of period, Total	5,726
Accumulated Depreciation	496
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	5,726
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	496
Multifamily | Tennyson Denver, CO | Denver, Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	1,533
Initial Cost, Buildings and Improvements	17,410
Adjustments to Building Basis	13
Gross amount at which carried at end of period, Land and Improvements	1,533
Gross amount at which carried at end of period, Buildings and Improvements	17,423
Gross amount at which carried at end of period, Total	18,956
Accumulated Depreciation	2,237
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	18,956
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	2,237
Multifamily | The Detroit And Detroit Terraces | Evanston, Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance	11,401
Initial Cost, Land	3,370
Initial Cost, Buildings and Improvements	15,006
Adjustments to Building Basis	64
Gross amount at which carried at end of period, Land and Improvements	3,370
Gross amount at which carried at end of period, Buildings and Improvements	15,070
Gross amount at which carried at end of period, Total	18,440
Accumulated Depreciation	2,160
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	18,440
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	2,160
Multifamily | The Lafayette Denver, CO | Denver, Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance	5,481
Initial Cost, Land	2,457
Initial Cost, Buildings and Improvements	7,067
Adjustments to Building Basis	207
Gross amount at which carried at end of period, Land and Improvements	2,457
Gross amount at which carried at end of period, Buildings and Improvements	7,274
Gross amount at which carried at end of period, Total	9,731
Accumulated Depreciation	1,207
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	9,731
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	1,207
Multifamily | The Locale Allendale, MI | Allendale MI
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance	17,492
Initial Cost, Land	4,294
Initial Cost, Buildings and Improvements	22,461
Adjustments to Building Basis	506
Gross amount at which carried at end of period, Land and Improvements	4,294
Gross amount at which carried at end of period, Buildings and Improvements	22,967
Gross amount at which carried at end of period, Total	27,261
Accumulated Depreciation	3,414
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	27,261
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	3,414
Multifamily | The Muse Denver, CO | Denver, Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	5,303
Initial Cost, Buildings and Improvements	42,809
Adjustments to Building Basis	73
Gross amount at which carried at end of period, Land and Improvements	5,303
Gross amount at which carried at end of period, Buildings and Improvements	42,882
Gross amount at which carried at end of period, Total	48,185
Accumulated Depreciation	4,768
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	48,185
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	4,768
Multifamily | The Sterling San Diego, CA | Sand Diego, California
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	1,849
Initial Cost, Buildings and Improvements	5,407
Adjustments to Building Basis	12
Gross amount at which carried at end of period, Land and Improvements	1,849
Gross amount at which carried at end of period, Buildings and Improvements	5,419
Gross amount at which carried at end of period, Total	7,268
Accumulated Depreciation	507
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	7,268
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	507
Multifamily | The View San Diego, CA | Sand Diego, California
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	7,272
Initial Cost, Buildings and Improvements	8,862
Adjustments to Building Basis	578
Gross amount at which carried at end of period, Land and Improvements	7,272
Gross amount at which carried at end of period, Buildings and Improvements	9,440
Gross amount at which carried at end of period, Total	16,712
Accumulated Depreciation	1,361
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	16,712
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	1,361
Retail Site | Buckhorn Plaza Bloomsburg, PA | Bloomsburg, Pennsylvania
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance	9,566
Initial Cost, Land	1,651
Initial Cost, Buildings and Improvements	11,770
Adjustments to Land Basis	(35)
Adjustments to Building Basis	2,292
Gross amount at which carried at end of period, Land and Improvements	1,616
Gross amount at which carried at end of period, Buildings and Improvements	14,062
Gross amount at which carried at end of period, Total	15,678
Accumulated Depreciation	8,452
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	15,678
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	8,452
Retail Site | Sherman Plaza Evanston, IL | Evanston, Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	9,655
Initial Cost, Buildings and Improvements	30,982
Adjustments to Building Basis	12,606
Gross amount at which carried at end of period, Land and Improvements	9,655
Gross amount at which carried at end of period, Buildings and Improvements	43,588
Gross amount at which carried at end of period, Total	53,243
Accumulated Depreciation	22,525
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	53,243
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	22,525
Retail Site | The Market at Hilliard Hilliard, OH | Hilliard, Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance	14,687
Initial Cost, Land	4,432
Initial Cost, Buildings and Improvements	13,308
Adjustments to Building Basis	4,015
Gross amount at which carried at end of period, Land and Improvements	4,432
Gross amount at which carried at end of period, Buildings and Improvements	17,323
Gross amount at which carried at end of period, Total	21,755
Accumulated Depreciation	9,681
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	21,755
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	9,681
Net Lease | Hudson Correctional Facility Hudson, CO | Hudson, Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	1,382
Adjustments to Land Basis	(1,382)
Adjustments to Building Basis	0
Gross amount at which carried at end of period, Land and Improvements	0
Gross amount at which carried at end of period, Buildings and Improvements	0
Gross amount at which carried at end of period, Total	0
Accumulated Depreciation	0
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	0
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	0
Net Lease | Versacold USA - St. Paul St. Paul, MN | St. Paul, Minnesota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	3,890
Initial Cost, Buildings and Improvements	10,093
Gross amount at which carried at end of period, Land and Improvements	3,890
Gross amount at which carried at end of period, Buildings and Improvements	10,093
Gross amount at which carried at end of period, Total	13,983
Accumulated Depreciation	5,379
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	13,983
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	5,379
Net Lease | Versacold USA - New Ulm New Ulm, MN | New Ulm, Minnesota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	900
Initial Cost, Buildings and Improvements	9,359
Gross amount at which carried at end of period, Land and Improvements	900
Gross amount at which carried at end of period, Buildings and Improvements	9,359
Gross amount at which carried at end of period, Total	10,259
Accumulated Depreciation	4,995
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	10,259
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	4,995
Multi-Tenant Office | Trimble San Jose, CA | San Jose, California
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	12,732
Initial Cost, Buildings and Improvements	10,045
Adjustments to Building Basis	12,633
Gross amount at which carried at end of period, Land and Improvements	12,732
Gross amount at which carried at end of period, Buildings and Improvements	22,678
Gross amount at which carried at end of period, Total	35,410
Accumulated Depreciation	4,165
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	35,410
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	4,165
Other | Palazzo Del Lago Orlando, FL | Orlando, Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land	8,938
Adjustments to Building Basis	19
Gross amount at which carried at end of period, Land and Improvements	8,938
Gross amount at which carried at end of period, Buildings and Improvements	19
Gross amount at which carried at end of period, Total	8,957
Accumulated Depreciation	9
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	8,957
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	9
Other | Corporate
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Adjustments to Building Basis	26
Gross amount at which carried at end of period, Land and Improvements	0
Gross amount at which carried at end of period, Buildings and Improvements	26
Gross amount at which carried at end of period, Total	26
Accumulated Depreciation	9
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	26
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	$ 9