Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 14, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-56273 | |
Entity Registrant Name | Nuveen Global Cities REIT, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 82-1419222 | |
Entity Address, Address Line One | 730 Third Avenue, 3rd Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 212 | |
Local Phone Number | 490-9000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001711799 | |
Current Fiscal Year End Date | --12-31 | |
Class T Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 17,262,705 | |
Class S Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 44,732,793 | |
Class D shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,193,734 | |
Class I Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 77,704,334 | |
Class N Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 29,730,608 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Investments in real estate, net | $ 1,594,030 | $ 909,832 |
Investments in commercial mortgage loans, at fair value | 391,085 | 140,512 |
Investments in international affiliated funds | 122,958 | 131,046 |
Investments in real estate-related securities, at fair value | 93,335 | 93,970 |
Investments in real estate debt, at fair value | 91,296 | 14,183 |
Intangible assets, net | 115,648 | 57,473 |
Cash and cash equivalents | 86,754 | 36,163 |
Restricted cash | 66,491 | 94,413 |
Other assets | 18,682 | 20,545 |
Total assets | 2,580,279 | 1,498,137 |
Liabilities and Equity | ||
Credit facility | 225,000 | 238,000 |
Loan participations, at fair value | 173,135 | 0 |
Mortgages payable, net | 167,638 | 105,614 |
Note payable, at fair value | 69,263 | 0 |
Subscriptions received in advance | 65,432 | 100,778 |
Due to affiliates | 49,351 | 30,006 |
Accounts payable, accrued expenses, and other liabilities | 45,843 | 14,810 |
Intangible liabilities, net | 36,567 | 22,522 |
Distributions payable | 9,769 | 5,323 |
Total liabilities | 841,998 | 517,053 |
Redeemable non-controlling interest | 822 | 258 |
Equity | ||
Series A Preferred Stock | 128 | 126 |
Additional paid-in capital | 1,926,374 | 1,043,073 |
Accumulated deficit and cumulative distributions | (182,795) | (63,958) |
Accumulated other comprehensive loss | (12,059) | (239) |
Total stockholder's equity | 1,733,344 | 979,991 |
Non-controlling interests attributable to third party joint ventures | 4,115 | 835 |
Total equity | 1,737,459 | 980,826 |
Total liabilities and equity | 2,580,279 | 1,498,137 |
Class T Shares | ||
Equity | ||
Common stock | 166 | 92 |
Class S Shares | ||
Equity | ||
Common stock | 428 | 238 |
Class D Shares | ||
Equity | ||
Common stock | 79 | 46 |
Class I Shares | ||
Equity | ||
Common stock | 726 | 316 |
Class N Shares | ||
Equity | ||
Common stock | $ 297 | $ 297 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Class T Shares | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 16,626,244 | 9,201,452 |
Common stock outstanding (in shares) | 16,626,244 | 9,201,452 |
Class S Shares | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 42,786,403 | 23,809,171 |
Common stock outstanding (in shares) | 42,786,403 | 23,809,171 |
Class D Shares | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 8,000,887 | 4,648,665 |
Common stock outstanding (in shares) | 8,000,887 | 4,648,665 |
Class I Shares | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 72,496,315 | 31,460,729 |
Common stock outstanding (in shares) | 72,496,315 | 31,460,729 |
Class N Shares | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 29,730,608 | 29,730,608 |
Common stock outstanding (in shares) | 29,730,608 | 29,730,608 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Rental revenue | $ 31,427 | $ 15,358 | $ 77,577 | $ 38,751 |
Income from commercial mortgage loans | 5,587 | 0 | 9,479 | 0 |
Total revenues | 37,014 | 15,358 | 87,056 | 38,751 |
Expenses | ||||
Rental property operating | 10,040 | 4,845 | 25,386 | 11,903 |
General and administrative | 2,491 | 903 | 7,112 | 2,834 |
Advisory fee due to affiliate | 7,583 | 2,502 | 18,720 | 5,197 |
Depreciation and amortization | 17,357 | 6,962 | 43,764 | 19,200 |
Total expenses | 37,471 | 15,212 | 94,982 | 39,134 |
Other income (expense) | ||||
Realized and unrealized (loss) gain from real estate-related securities | (10,663) | 2 | (32,601) | 8,787 |
Realized and unrealized loss from real estate debt | (819) | 0 | (3,337) | 0 |
Income from equity investments in unconsolidated international affiliated funds | 436 | 1,613 | 5,421 | 1,928 |
Unrealized gain (loss) on commercial mortgage loans | 670 | 0 | (1,578) | 0 |
Interest income | 1,541 | 45 | 3,048 | 155 |
Interest expense | (4,685) | (1,127) | (9,628) | (3,072) |
Total other income (expense) | (13,520) | 533 | (38,675) | 7,798 |
Net (loss) income | (13,977) | 679 | (46,601) | 7,415 |
Net loss attributable to non-controlling interests in third party joint ventures | (25) | 0 | (47) | 0 |
Net income attributable to preferred stock | 3 | 4 | 11 | 15 |
Net (loss) income attributable to common stockholders | $ (13,955) | $ 675 | $ (46,565) | $ 7,400 |
Net (loss) income per share of common stock - basic (in dollars per share) | $ (0.08) | $ 0.01 | $ (0.33) | $ 0.13 |
Net (loss) income per share of common stock - diluted (in dollars per share) | $ (0.08) | $ 0.01 | $ (0.33) | $ 0.13 |
Weighted-average shares of common stock outstanding, basic (in shares) | 166,094,422 | 71,220,828 | 142,141,411 | 56,768,818 |
Weighted-average shares of common stock outstanding, diluted (in shares) | 166,094,422 | 71,220,828 | 142,141,411 | 56,768,818 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (13,977) | $ 679 | $ (46,601) | $ 7,415 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | (5,386) | (709) | (11,820) | (1,644) |
Comprehensive (loss) income | (19,363) | (30) | (58,421) | 5,771 |
Comprehensive loss attributable to non-controlling interests in third party joint ventures | (25) | 0 | (47) | 0 |
Comprehensive income attributable to preferred stock | 3 | 4 | 11 | 15 |
Comprehensive (loss) income attributable to common stockholders | $ (19,341) | $ (34) | $ (58,385) | $ 5,756 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Preferred Stock | Common Stock Class T Shares | Common Stock Class S Shares | Common Stock Class D Shares | Common Stock Class I Shares | Common Stock Class N Shares | Additional Paid-in Capital | Accumulated Deficit and Cumulative Distributions | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interests Attributable to Third Party Joint Ventures | ||||
Beginning Balance at Dec. 31, 2020 | $ 376,777 | $ 376,777 | $ 250 | $ 33 | $ 28 | $ 13 | $ 46 | $ 297 | $ 416,348 | $ (42,406) | $ 2,168 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of shares, net of offering costs | 378,564 | 378,564 | 37 | 122 | 20 | 176 | 378,209 | |||||||||
Distribution reinvestment | 4,046 | 4,046 | 1 | 1 | 0 | [1] | 1 | 4,043 | ||||||||
Preferred stock redemption | (125) | (125) | (125) | |||||||||||||
Common stock repurchased | (2,556) | (2,556) | 0 | [1] | 0 | [1] | 0 | [1] | (2) | (2,554) | ||||||
Amortization of restricted stock grants | 54 | 54 | 54 | |||||||||||||
Net income (loss) | 7,415 | 7,415 | 15 | 7,400 | ||||||||||||
Distributions on common stock | (25,939) | (25,939) | (25,939) | |||||||||||||
Distribution to Series A preferred stock | (11) | (11) | (11) | |||||||||||||
Foreign currency translation adjustment | (1,644) | (1,644) | (1,644) | |||||||||||||
Ending Balance at Sep. 30, 2021 | 736,581 | 736,581 | 129 | 71 | 151 | 33 | 221 | 297 | 796,100 | (60,945) | 524 | |||||
Beginning Balance at Dec. 31, 2020 | 376,777 | 376,777 | 250 | 33 | 28 | 13 | 46 | 297 | 416,348 | (42,406) | 2,168 | |||||
Ending Balance at Dec. 31, 2021 | 980,826 | 979,991 | 126 | 92 | 238 | 46 | 316 | 297 | 1,043,073 | (63,958) | (239) | $ 835 | ||||
Beginning Balance at Jun. 30, 2021 | 552,466 | 552,466 | 129 | 55 | 96 | 24 | 122 | 297 | 601,050 | (50,540) | 1,233 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of shares, net of offering costs | 194,548 | 194,548 | 15 | 55 | 9 | 100 | 194,369 | |||||||||
Distribution reinvestment | 2,058 | 2,058 | 1 | 0 | [1] | 0 | [1] | 0 | [1] | 2,057 | ||||||
Common stock repurchased | (1,397) | (1,397) | 0 | 0 | [1] | 0 | [1] | (1) | (1,396) | |||||||
Amortization of restricted stock grants | 20 | 20 | 20 | |||||||||||||
Net income (loss) | 679 | 679 | 4 | 675 | ||||||||||||
Distributions on common stock | (11,080) | (11,080) | (11,080) | |||||||||||||
Distribution to Series A preferred stock | (4) | (4) | (4) | |||||||||||||
Foreign currency translation adjustment | (709) | (709) | (709) | |||||||||||||
Ending Balance at Sep. 30, 2021 | 736,581 | 736,581 | 129 | 71 | 151 | 33 | 221 | 297 | 796,100 | (60,945) | 524 | |||||
Beginning Balance at Dec. 31, 2021 | 980,826 | 979,991 | 126 | 92 | 238 | 46 | 316 | 297 | 1,043,073 | (63,958) | (239) | 835 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of shares, net of offering costs | 875,961 | 875,961 | 73 | 189 | 33 | 407 | 875,259 | |||||||||
Distribution reinvestment | 26,357 | 26,357 | 2 | 6 | 1 | 11 | 26,337 | |||||||||
Common stock repurchased | (17,851) | (17,851) | (1) | (5) | (1) | (8) | (17,836) | |||||||||
Amortization of restricted stock grants | 105 | 105 | 105 | |||||||||||||
Net income (loss) | (46,601) | (46,554) | 11 | (46,565) | (47) | |||||||||||
Distributions on common stock | (72,272) | (72,272) | (72,272) | |||||||||||||
Contributions from non-controlling interest | 3,347 | 3,347 | ||||||||||||||
Distributions to non-controlling interest | (20) | 0 | 0 | (20) | ||||||||||||
Distribution to Series A preferred stock | (9) | (9) | ||||||||||||||
Foreign currency translation adjustment | (11,820) | (11,820) | (11,820) | |||||||||||||
Allocation to redeemable non-controlling interest | (564) | (564) | (564) | |||||||||||||
Ending Balance at Sep. 30, 2022 | 1,737,459 | 1,733,344 | 128 | 166 | 428 | 79 | 726 | 297 | 1,926,374 | (182,795) | (12,059) | 4,115 | ||||
Beginning Balance at Jun. 30, 2022 | 1,570,197 | 1,569,384 | 126 | 147 | 388 | 73 | 627 | 297 | 1,714,792 | (140,393) | (6,673) | 813 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of shares, net of offering costs | 207,713 | 207,713 | 19 | 40 | 6 | 98 | 207,550 | |||||||||
Distribution reinvestment | 11,839 | 11,839 | 1 | 2 | 0 | [1] | 5 | 11,831 | ||||||||
Common stock repurchased | (7,634) | (7,634) | (1) | (2) | 0 | [1] | (4) | (7,627) | ||||||||
Amortization of restricted stock grants | 66 | 66 | 66 | |||||||||||||
Net income (loss) | (13,977) | (13,952) | 3 | (13,955) | (25) | |||||||||||
Distributions on common stock | (28,447) | (28,447) | (28,447) | |||||||||||||
Contributions from non-controlling interest | 3,347 | 3,347 | ||||||||||||||
Distributions to non-controlling interest | (20) | (20) | ||||||||||||||
Distribution to Series A preferred stock | (1) | (1) | (1) | |||||||||||||
Foreign currency translation adjustment | (5,386) | (5,386) | 0 | (5,386) | ||||||||||||
Allocation to redeemable non-controlling interest | (238) | (238) | (238) | |||||||||||||
Ending Balance at Sep. 30, 2022 | $ 1,737,459 | $ 1,733,344 | $ 128 | $ 166 | $ 428 | $ 79 | $ 726 | $ 297 | $ 1,926,374 | $ (182,795) | $ (12,059) | $ 4,115 | ||||
[1]Amount is not presented due to rounding; see Note 17. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Offering costs | $ 213 | $ 737 | ||
Distribution to Series A preferred stock | $ (1) | $ (4) | $ (9) | $ (11) |
Common Stock | ||||
Issuance of common stock (in shares) | 16,168,755 | 17,748,863 | 70,107,525 | 35,427,329 |
Offering costs | $ 213 | $ 624 | ||
Preferred Stock | ||||
Distribution to Series A preferred stock | $ (1) | (4) | (11) | |
Total Stockholders' Equity | ||||
Distribution to Series A preferred stock | $ (1) | $ (4) | $ (9) | $ (11) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (46,601) | $ 7,415 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 43,764 | 19,200 |
Unrealized loss (gain) on changes in fair value of real estate-related securities | 39,569 | (5,058) |
Realized gain on sale of real estate-related securities | (4,231) | (2,474) |
Unrealized loss on changes in fair value of real estate debt | 3,333 | 0 |
Unrealized loss on changes in commercial mortgage loans | 1,578 | 0 |
Realized loss on sale of real estate debt | 4 | 0 |
Income from equity investments in unconsolidated international affiliated funds | (5,421) | (1,928) |
Income distributions from equity investments in unconsolidated international affiliated funds | 1,688 | 797 |
Straight line rent adjustment | (1,829) | (1,401) |
Amortization of above and below-market lease intangibles | (2,494) | (1,374) |
Amortization of deferred financing costs | 571 | 440 |
Amortization of restricted stock grants | 105 | 54 |
Change in assets and liabilities: | ||
Decrease (increase) in other assets | 3,207 | (2,726) |
Increase in accounts payable, accrued expenses, and other liabilities | 21,839 | 3,363 |
Net cash provided by operating activities | 55,082 | 16,308 |
Cash flows from investing activities: | ||
Acquisitions of real estate | (691,679) | (224,277) |
Origination and fundings of commercial mortgage loans | (253,032) | 0 |
Deposit on commercial mortgage loan | 0 | 150 |
Capital improvements to real estate | (6,593) | (5,061) |
Deposits on investments in real estate | 0 | (250) |
Purchase of real estate-related securities | (79,065) | (52,354) |
Proceeds from sale of real estate-related securities | 44,362 | 20,066 |
Purchases of real estate debt | (81,615) | 0 |
Proceeds from sale of real estate debt | 1,165 | 0 |
Net cash used in investing activities | (1,066,457) | (261,726) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 792,544 | 384,798 |
Repurchase of common stock | (14,502) | (2,556) |
Offering costs paid | (737) | (647) |
Borrowings under credit facility | 222,000 | 369,723 |
Repayments on credit facility | (235,000) | (304,000) |
Borrowings under mortgages payable | 0 | 28,750 |
Proceeds from note payable | 69,263 | 0 |
Payment of deferred financing costs | (194) | (289) |
Proceeds from loan participations | 174,016 | 0 |
Payment of offering and organization costs due to affiliate | (627) | 0 |
Repurchase of preferred stock | 0 | (125) |
Contributions from non-controlling interests in third party joint ventures | 3,347 | 0 |
Distributions to preferred stockholders | (9) | (11) |
Distributions to non-controlling interests in third party joint ventures | (20) | 0 |
Subscriptions received in advance | 65,432 | 78,949 |
Distributions | (41,469) | (19,169) |
Net cash provided by financing activities | 1,034,044 | 535,423 |
Net increase in cash and cash equivalents and restricted cash during the period | 22,669 | 290,005 |
Cash and cash equivalents and restricted cash, beginning of period | 130,576 | 15,671 |
Cash and cash equivalents and restricted cash, end of period | 153,245 | 305,676 |
Reconciliation of cash and cash equivalents and restricted cash to the Consolidated Balance Sheets, end of period: | ||
Cash and cash equivalents | 86,754 | 226,669 |
Restricted cash | 66,491 | 79,007 |
Total cash and cash equivalents and restricted cash | 153,245 | 305,676 |
Supplemental disclosures: | ||
Interest paid | 7,111 | 2,498 |
Non-cash investing activities: | ||
Assumption of other assets and liabilities in conjunction with acquisitions of investments in real estate | 8,985 | 700 |
Accrued capital expenditures | 9,194 | 179 |
Non-cash financing activities: | ||
Assumption of mortgages payable in conjunction with acquisitions of investments in real estate | 62,132 | 0 |
Accrued distributions | (4,446) | 1,973 |
Accrued stockholder servicing fees | 19,972 | 11,555 |
Distribution reinvestments | 26,357 | 4,043 |
Accrued offering costs | 0 | (35) |
Allocation to redeemable non-controlling interest | $ 564 | $ 0 |
Organization and Business Purpo
Organization and Business Purpose | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Purpose | Organization and Business Purpose Nuveen Global Cities REIT, Inc. (the “Company”) was formed on May 1, 2017 as a Maryland corporation and elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with its taxable year ending December 31, 2018 and intends to operate in a manner that will allow it to continue to qualify as a REIT. The Company’s sponsor is Nuveen, LLC (the “Sponsor”), a wholly owned subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”). The Company is the sole general partner of Nuveen Global Cities REIT OP, LP, a Delaware limited partnership (“Nuveen OP”). Nuveen OP has issued a limited partner interest to Nuveen Global Cities REIT LP, LLC (the “Limited Partner”), a wholly owned subsidiary of the Company. The Company was organized to invest primarily in stabilized income-oriented commercial real estate in the United States and a substantial but lesser portion of the Company's portfolio will include real properties located in Canada, Europe and the Asia-Pacific region. Substantially all of the Company’s business is conducted through Nuveen OP. The Company and Nuveen OP are externally managed by Nuveen Real Estate Global Cities Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of the Sponsor and an investment advisory affiliate of Nuveen Real Estate ("NRE"). Pursuant to a Registration Statement on Form S-11 (File No. 333-222231), (the “IPO Registration Statement”), the Company registered with the Securities and Exchange Commission (the “SEC”) its initial public offering of up to $5.0 billion in shares of common stock, consisting of up to $4.0 billion in shares in its primary offering and up to $1.0 billion in shares pursuant to its distribution reinvestment plan (the “Initial Public Offering”). The IPO Registration Statement was initially declared effective on January 31, 2018 and the Initial Public Offering terminated on July 2, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries, and in the opinion of management, include all necessary adjustments, consisting of only normal and recurring items, necessary for a fair statement of the Company’s consolidated financial statements as of September 30, 2022 and for the three and nine months ended September 30, 2022 and 2021. Results of operations for the interim periods are not necessarily indicative of results for the entire year. These financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the applicable rules and regulations of the SEC. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. Certain footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed from this report pursuant to the rules of the SEC. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements prepared in accordance with GAAP, and the related notes thereto, that are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 as filed with the SEC. The year-end balance sheet was derived from those audited financial statements. The accompanying condensed consolidated financial statements include the accounts of the Company, the Company's subsidiaries and joint ventures in which the Company has a controlling interest. Principles of Consolidation The Company consolidates all entities in which it has a controlling financial interest through majority ownership or voting rights and variable interest entities whereby the Company is the primary beneficiary. In determining whether the Company has a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, the Company considers whether the entity is a variable interest entity (“VIE”) and whether it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has (i) the power to direct the most significant activities impacting the economic performance of the VIE and (ii) the obligation to absorb losses or receive benefits significant to the VIE. Entities that do not qualify as VIEs are generally considered voting interest entities (“VOEs”) and are evaluated for consolidation under the voting interest model. VOEs are consolidated when the Company controls the entity through a majority voting interest or other means. When the requirements for consolidation are not met and the Company has significant influence over the operations of the entity, the investment is accounted for under the equity method of accounting. Equity method investments for which the Company has not elected a fair value option (“FVO”) are initially recorded at cost and subsequently adjusted for the Company’s pro-rata share of net income, contributions and distributions. When the Company elects the FVO, the Company records its share of net asset value of the entity and any related unrealized gains and losses. Each of the Company’s joint ventures are considered to be a VIE or VOE. The Company consolidates these entities because it has the ability to direct the most significant activities of the joint ventures, including unilateral decision making on the disposition of the investments. For select joint ventures, the non-controlling partner’s share of the assets, liabilities, and operations of each joint venture is included in noncontrolling interests as equity of the Company. The non-controlling partner’s interest is generally computed as the joint venture partner’s ownership percentage. Certain of the joint ventures formed by the Company provide the other partner a profits interest based on certain internal rate of return hurdles being achieved. Any profits interest due to the other partner is reported within redeemable non-controlling interests. As of September 30, 2022, and December 31, 2021, the total assets and liabilities of the Company’s consolidated VIEs and VOEs were $228.0 million and $101.7 million, and $53.5 million and $29.7 million, respectively. Such amounts are included on the Company’ Consolidated Balance Sheets. The Company has limited contractual rights to obtain the financial records of its consolidated single-family housing, retail, student housing, and self-storage portfolios from the operating partner. The operating partner does not prepare separate GAAP financial statements; therefore, the Company compiles GAAP financial information for them based on reports prepared by and received from the operating partner. Such reports are not available to the Company until approximately 25 days after the end of any given period. As a result, these activities are generally included in the Company's consolidated financial statements on a one month lag; however, any significant activity that occurs in the final month of the quarter is recorded in that period. Investments in Real Estate In accordance with the guidance for business combinations, the Company determines whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired is not a business, the Company accounts for the transaction as an asset acquisition. All property acquisitions to date have been accounted for as asset acquisitions. Whether the acquisition of a property acquired is considered a business combination or asset acquisition, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquired entity. In addition, for transactions that will be considered business combinations, the Company will evaluate the existence of goodwill or a gain from a bargain purchase. The Company expenses acquisition-related costs associated with business combinations as they are incurred. The Company capitalizes acquisition-related costs associated with asset acquisitions. Upon acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, above-market and below-market leases, acquired in-place leases, other identified intangible assets and assumed liabilities) and allocates the purchase price to the acquired assets and assumed liabilities. The Company assesses and considers fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as other available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends and market and economic conditions. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including but not limited to the nature and extent of the existing relationship with the tenants, the tenants’ credit quality and expectations of lease renewals. Based on its acquisitions to date, the Company’s allocation to customer relationship intangible assets has not been material. The Company records acquired above-market and below-market leases at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in-place lease and (2) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors to be considered include estimates of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions, legal and other related expenses. Intangible assets and intangible liabilities are recorded as separate components on the Company's Consolidated Balance Sheets. The amortization of acquired above-market and below-market leases is recorded as an adjustment to Rental Revenue on the Company’s Consolidated Statements of Operations. The amortization of in-place leases is recorded as an adjustment to Depreciation and Amortization on the Company's Consolidated Statements of Operations. The cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related adjustments, along with any subsequent improvements to such properties. The Company’s Investments in Real Estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Description Depreciable Life Building 40 years Building, land and site improvements 15-40 years Furniture, fixtures and equipment 3-7 years Lease intangibles Over lease term Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation or amortization are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. Repairs and maintenance are expensed to operations as incurred and are included in Rental Property Operating on the Company’s Consolidated Statements of Operations. The Company’s management reviews its real estate properties for impairment each quarter or when there is an event or change in circumstances that indicates an impaired value. If the carrying amount of the real estate investment is no longer recoverable and exceeds the fair value of such investment, an impairment loss is recognized. The impairment loss is recognized based on the excess of the carrying amount of the asset over its fair value, or fair value, less cost to sell if classified as held for sale. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized and such loss could be material to the Company’s results. If the Company determines that an impairment has occurred, the affected assets are reduced to their fair value or fair value, less cost to sell if classified as held for sale. During the periods presented, no such impairment occurred. Investments in Real Estate-Related Securities The Company reports its investment in real estate-related securities at fair value and any changes in fair value are recorded in the current period earnings. Dividend income is recorded when declared and the resulting dividend income, along with gains and losses are recorded as a component of Realized and Unrealized Income (Loss) from Real Estate-Related Securities on the Company’s Consolidated Statements of Operations. Investments in Real Estate Debt The Company’s investments in real estate debt consists of commercial mortgage-backed securities (“CMBS”), which are securities backed by one or more mortgage loans secured by real estate assets. The Company classifies its CMBS as trading securities and records such investments at fair value. As such, the resulting unrealized gains and losses of its CMBS are recorded as a component of Realized and Unrealized Income (Loss) from Real Estate Debt on the Company’s Consolidated Statements of Operations. Interest income from the Company’s investments in CMBS is recognized over the life of each investment and is recorded on the accrual basis on the Company’s Consolidated Statements of Operations. Investments in International Affiliated Funds The Company reports its investment in European Cities Partnership SCSp (“ECF”) and Asia Pacific Cities Fund (“APCF”), investment funds managed by an affiliate of TIAA (collectively, the “International Affiliated Funds”), under the equity method of accounting as the Company's ownership interest in each fund does not meet the requirements for consolidation. The equity method income (loss) from the investments in the International Affiliated Funds represents the Company’s allocable share of each fund’s net income or loss, which includes income and expense, realized gains and losses, and unrealized appreciation or depreciation as determined from the financial statements of ECF and APCF (which carry investments at fair value in accordance with the applicable GAAP) and is reported as Income (Loss) from Equity Investment in Unconsolidated International Affiliated Funds on the Company’s Consolidated Statements of Operations. All contributions to or distributions from the investment in the International Affiliated Funds are accrued when notice is received and recorded as a receivable from or payable to the International Affiliated Funds on the Company's Consolidated Balance Sheets. Investments in Commercial Mortgage Loans The Company originates commercial mortgage loans and elects the fair value option for each. In accordance with the adoption of the fair value option allowed under ASC 825, Financial Instruments, and at the election of the Company, the commercial mortgage loans are stated at fair value and initially valued at the face amount of the loan funding. Subsequently, the commercial mortgage loans are valued at least quarterly by an independent third-party valuation firm with additional oversight being performed by the Advisor’s internal valuation department. The value is based on market factors, such as market interest rates and spreads for comparable loans, the performance of the underlying collateral (such as the loan-to-value ratio and the cash flow of the underlying collateral), and the credit quality of the borrower. The income from the commercial mortgage loans represents interest income and origination fee income, which is reported as Income from Commercial Mortgage Loans on the Company’s Consolidated Statements of Operations. Unrealized gains and losses are recorded as a component of Unrealized Loss on Commercial Mortgage Loan on the Company’s Consolidated Statements of Operations. In the event of a partial or whole sale of the commercial mortgage loan that qualifies for sale accounting under GAAP, the Company derecognizes the corresponding asset and fees paid as part of the partial or whole sale are recognized on the Company’s Consolidated Statements of Operations. Senior Loan Participations In certain instances, the Company finances loans through the non-recourse syndication of a senior loan interest to a third party. Depending on the particular structure of the syndication, the senior loan interest may remain on the Company's Consolidated Balance Sheets or, in other cases, the sale will be recognized and the senior loan interest will no longer be included in its consolidated financial statements. When these sales do not qualify for sale accounting under GAAP, the Company reflects the transaction by recording a loan participations liability at fair value on the Consolidated Balance Sheets, however this gross presentation does not impact Stockholders’ Equity or Net Income. When the sales are recognized, the Consolidated Balance Sheets only includes the remaining subordinate loan and not the non-consolidated senior interest sold. Note Payable The Company finances the acquisition of certain mortgage loans through the use of "note-on-note" transactions in which the Company pledges mortgage loans as collateral to secure a loan which is equal in value to a specified percentage of the estimated fair value of the pledged collateral. These "note-on-note" transactions are recorded in Note Payable on the Consolidated Balance Sheets and are carried at fair value through the adoption of the fair value option allowed under ASC 825. Financing costs related to the Company's note payable are expensed as incurred and recorded in Interest Expense on the Consolidated Statements of Operations. Deferred Charges The Company's deferred charges include financing and leasing costs. Financing costs include legal, structuring, and other loan costs incurred by the Company for its financing arrangements. Deferred financing costs related to the Credit Facility (as defined herein) are recorded as a component of Other Assets on the Company’s Consolidated Balance Sheets and are being amortized on a straight-line basis over the term of the Credit Facility, which approximates the effective interest method. Unamortized costs are charged to interest expense upon early repayment or significant modification of the Credit Facility and fully amortized deferred financing costs are removed from the books upon the maturity of the Credit Facility. Deferred financing costs related to the Company’s mortgages payable are recorded as an offset to the related liability and amortized on a straight-line basis over the term of the financing instrument, which approximates the effective interest method. Deferred leasing costs incurred in connection with new leases, which consist primarily of brokerage and legal fees, are recorded as a component of Investments in Real Estate, Net on the Company’s Consolidated Balance Sheets and amortized over the life of the related lease. Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—quoted prices are available in active markets for identical investments as of the measurement date. The Company does not adjust the quoted price for these investments. Level 2—quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date. Level 3—pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed. The Company's investments in real estate-related securities are recorded at fair value based on the closing price of the common stock as reported by the applicable national securities exchange and were classified as Level 1. The Company’s investments in real estate debt, which consists of CMBS, are reported at fair value. The Company generally determines the fair value of its investments in real estate debt by utilizing third-party pricing service providers whenever available and has classified as Level 2. The Company’s investment in commercial mortgage loans consists of floating rate senior and mezzanine loans the Company originated and has classified as Level 3. The commercial mortgage loans are carried at fair value based on significant unobservable inputs. The Company's loan participations and note payable are carried at fair value based on significant observable inputs and have been classified as Level 3. The carrying amounts of financial instruments such as other assets, accounts payable, accrued expenses and other liabilities approximate their fair values due to the short-term maturities and market rates of interest of these instruments. The following table details the Company’s assets and liabilities measured at fair value on a recurring basis ($ in thousands): September 30, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Investments in real estate-related securities $ 93,335 $ — $ — $ 93,335 $ 93,970 $ — $ — $ 93,970 Investments in real estate debt — 91,296 — 91,296 — 14,183 — 14,183 Investments in commercial mortgage loans — — 391,085 391,085 — — 140,512 140,512 Total $ 93,335 $ 91,296 $ 391,085 $ 575,716 $ 93,970 $ 14,183 $ 140,512 $ 248,665 Liabilities: Loan participations — — 173,135 173,135 — — — — Note payable — — 69,263 69,263 — — — — Total $ — $ — $ 242,398 $ 242,398 $ — $ — $ — $ — The following table details the Company’s assets and liabilities measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Investments in Commercial Mortgage Loans Loan Participations Note Payable Balance as of December 31, 2021 $ 140,512 $ — $ — Loan Originations 229,095 — — Loan Participations Sold — 157,397 — Additional Fundings 23,937 16,619 — Net Unrealized Loss (2,459) (a) (881) — Financing Proceeds — — 69,263 Balance as of September 30, 2022 $ 391,085 $ 173,135 $ 69,263 (a) Includes Unrealized Loss on Commercial Mortgage Loans of $(1.6) million, combined with unrealized loss of $(0.9) million associated with loan participations. The following table shows the quantitative information about unobservable inputs related to the Level 3 fair value measurements comprising the investments in commercial mortgage loans, loan participations and note payable as of September 30, 2022. Type Asset Class Valuation Technique Unobservable Inputs Weighted Average Commercial Mortgage Loans Various Cash Equivalency Method Discount Rate LIBOR (1) + 3.49% SOFR (2) + 2.58% Loan Participations Various Cash Equivalency Method Discount Rate LIBOR (1) + 1.75% SOFR (2) + 1.74% Note Payable Various Cash Equivalency Method Discount Rate SOFR (2) + 1.65% (1) LIBOR as of September 30, 2022 was 3.1%. As of September 30, 2022, the carrying value of the Company's Credit Facility (as defined below) approximated fair value. The fair value of the Company's mortgages payable was $166.6 million and $106.3 million as of September 30, 2022 and December 31, 2021, respectively. Fair value of the Company's indebtedness is estimated by modeling the cash flows required by the Company's debt agreements and discounting them back to present value using the appropriate discount rate. Additionally, the Company considers current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The inputs used in determining the fair value of the Company's indebtedness are considered Level 3. Revenue Recognition The Company’s sources of revenue and the related revenue recognition policies are as follows: Rental Revenue — consists primarily of base rent arising from tenant operating leases at the Company’s office, industrial, self-storage, multifamily, retail, healthcare and single-family housing properties. Rental revenue is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. The Company begins to recognize revenue when a tenant takes possession of the leased space. The Company includes its tenant reimbursement income in rental revenue that consists of amounts due from tenants for costs related to common area maintenance, real estate taxes and other recoverable costs as defined in lease agreements. Income from Commercial Mortgage Loans — consists of income from interest earned and recognized as operating income based upon the principal amount outstanding and the contracted interest rate along with origination fees. The accrual of interest income on mortgage loans is discontinued when in management’s opinion, the borrower may be unable to meet payments as they become due (“nonaccrual mortgage loans”), unless the loan is well-secured and is in the process of collection. Interest income on nonaccrual mortgage loans is subsequently recognized only to the extent cash payments are received until the loans are returned to accrual status. As of September 30, 2022, the Company did not have any mortgage loans on nonaccrual status. Leases The Company derives revenue pursuant to lease agreements. At the inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the lease inception, the Company determines whether each lease is a sales-type, direct financing or operating lease. Such classification is based on whether: • The lessee gains control of the underlying asset and the lessor therefore relinquishes control to the lessee under certain criteria (sales-type or direct-financing); or • All other leases that do not meet the criteria as sales-type or direct financing leases (operating). The Company's leases are classified as operating leases in accordance with relevant accounting guidelines, and the related revenue is recognized on a straight-line basis. Upon the termination or vacation of a tenant lease, the associated straight-line rent receivable is written off. Cash and Cash Equivalents Cash and cash equivalents represent cash held in banks, cash on hand and liquid investments with original maturities of three months or less at the time of purchase. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash with high credit-quality institutions to minimize credit risk. Restricted Cash As of September 30, 2022, the Company had $66.5 million of restricted cash. The restricted cash consisted of $1.1 million of tenant security deposits and $65.4 million of cash received for subscriptions prior to the date in which the subscriptions are effective, which is held in a bank account controlled by the Company’s transfer agent, but in the name of the Company. Income Taxes The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code (“Code”) commencing with its taxable year ending December 31, 2018 and intends to operate in a manner that will allow it to continue to qualify as a REIT. In qualifying for taxation as a REIT, the Company is subject to federal corporate income tax to the extent it distributes less than 100% of its REIT taxable income (including any net capital gains) to its shareholders. A REIT is subject to U.S. federal income tax on undistributed REIT taxable income and net capital gains, and may be subject to 21% corporate income tax and a 4% excise tax. REITs are subject to a number of other organizational and operational requirements. Even in qualifying for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. The Company may elect to treat certain of its corporate subsidiaries as taxable REIT subsidiaries (“TRSs”). In general, a TRS may perform additional services for the Company’s tenants and generally may engage in any real estate or non-real estate-related business other than management or operation of a lodging facility or a health care facility. A domestic TRS is subject to US corporate federal income tax and state income or franchise tax. The Cayman Islands TRSs are not subject to US corporate federal income tax or Cayman Islands taxes. As of September 30, 2022, the Company had five active TRSs: the Company uses two Cayman Islands TRSs to hold its investments in the International Affiliated Funds, uses one Luxembourg TRS to hold minority interests in future European investments, uses one domestic TRS to hold the senior portions of the commercial mortgage loans, and one domestic TRS for self-storage, nonrental-related business. The Company accrues liabilities when it believes that it is more likely than not that it will not realize the benefits of tax positions that it has taken in its tax returns or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with ASC 740-10, Uncertain Tax Positions. Tax legislation commonly referred to as the Tax Cuts & Jobs Act (the “TCJA”) was enacted on December 22, 2017. Among other things, the TCJA reduced the U.S. federal corporate income tax rate from 35% to 21% and created new taxes on certain foreign-sourced earnings. Federal legislation intended to ameliorate the economic impact of the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), was enacted on March 27, 2020, which, among other things, made technical corrections to, or modifies on a temporary basis, certain of the provisions of the TCJA. Management has evaluated the effects of TCJA, as modified by the CARES Act, and concluded that the TCJA will not materially impact its consolidated financial statements. The Company also estimates that the taxes on foreign-sourced earnings imposed under the TCJA are not likely to apply to its foreign investments. Organization and Offering Expenses The Advisor advanced organization and offering expenses on behalf of the Company (including legal, accounting, and other expenses attributable to the organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) through the fourth full fiscal quarter after the Company’s acquisition of its first property. The Company agreed to reimburse the Advisor for all such advanced expenses it incurred in 60 equal monthly installments commencing on the earlier of the date the Company’s NAV reaches $1.0 billion or January 31, 2023. The Company's NAV reached $1.0 billion in October 2021 and as of September 30, 2022, had reimbursed the Advisor $0.6 million for such costs. The Advisor and its affiliates have incurred organization and offering expenses on the Company’s behalf for the Initial Public Offering of $4.6 million, consisting of offering costs of $3.5 million and organization costs of $1.1 million, of which $4.0 million and $4.6 million remain outstanding as of September 30, 2022 and December 31, 2021, respectively. These organization and offering costs are recorded as Due to Affiliates on the Company’s Consolidated Balance Sheets. Offering costs are currently charged to equity as such amounts are incurred. For the three and nine months ended September 30, 2022, the Company charged $0.2 million and $0.7 million, respectively, in offering costs to equity. Foreign Currency The financial position and results of operations of ECF is measured using the local currency (Euro) as the functional currency and are translated into U.S. dollars for purposes of recording the related activity under the equity method of accounting. Net income (loss), which includes the Company’s allocable share of ECF's income and expense, realized gains and losses and unrealized appreciation or depreciation, has been translated at average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of accumulated other comprehensive income (loss), unless there is a sale or complete liquidation of the underlying foreign investments. Foreign currency translation adjustments resulted in other comprehensive losses of approximately $5.4 million and $11.8 million for the three and nine months ended September 30, 2022, respectively. Foreign currency translation adjustments resulted in other comprehensive losses of approximately $0.7 million and $1.6 million for the three and nine months ended September 30, 2021, respectively. The financial position and results of operations of APCF is measured in U.S. dollars for purposes of recording the related activity under the equity method of accounting. There is no direct foreign currency exposure to the Company for its investment in APCF. Earnings per Share Basic net incom |
Investments in Real Estate
Investments in Real Estate | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Investments in Real Estate | Investments in Real Estate Investments in Real Estate, Net consisted of the following ($ in thousands): September 30, 2022 December 31, 2021 Building and building improvements $ 1,371,568 $ 778,324 Land and land improvements 283,702 166,944 Furniture, fixtures and equipment 12,530 9,976 Total 1,667,800 955,244 Accumulated depreciation (73,770) (45,412) Investments in real estate, net $ 1,594,030 $ 909,832 For the three and nine months ended September 30, 2022, depreciation expense was $11.7 million and $28.4 million, respectively. For the three and nine months ended September 30, 2021, depreciation expense was $4.7 million and $12.7 million, respectively. During the nine months ended September 30, 2022, the Company acquired an interest in four industrial, three self-storage, one medical office, one retail, and 127 single-family real estate investments. The following table provides details of the properties acquired during the nine months ended September 30, 2022 ($ in thousands): Sectors Purchase Price (1) Number of Transactions Number of Properties Sq. Ft. (in thousands)/Units Medical Office $ 292,017 1 10 344 Sq. Ft Industrial 245,950 4 12 1,989 Sq. Ft. Retail 130,371 1 5 496 Sq. Ft. Self-Storage 35,270 3 3 1,812 Units Single-Family Rentals 50,203 127 127 250 Sq. Ft. $ 753,811 136 157 (1) Purchase price is inclusive of acquisition costs and other acquisition related adjustments. Purchase price does not include any net liabilities assumed. The following table summarizes the purchase price allocation for the properties acquired during the nine months ended September 30, 2022 ($ in thousands): Amount Building and building improvements $ 581,499 Land and land improvements 116,774 In-place lease intangibles 30,988 Furniture, fixtures and equipment 405 Leasing commissions 16,588 Other intangibles 7,557 Total purchase price $ 753,811 Mortgage notes assumed (62,132) Non-controlling interest (3,347) Net purchase price $ 688,332 |
Investments in Real Estate-Rela
Investments in Real Estate-Related Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Real Estate-Related Securities | Investments in Real Estate-Related Securities As of September 30, 2022 and December 31, 2021, the Company’s investments in real estate-related securities consisted of shares of common stock of publicly-listed REITs. As described in Note 2, the Company records its investments in real estate-related securities at fair value on its Consolidated Balance Sheets. The following table summarizes the Investments in Real Estate-Related Securities as of September 30, 2022 ($ in thousands): Investments in Real Balance as of December 31, 2021 $ 93,970 Additions 79,065 Disposals (44,362) Unrealized losses (39,569) Realized gains 4,231 Balance at September 30, 2022 $ 93,335 The following table summarizes the components of Realized and Unrealized Income (Loss) from Real Estate-Related Securities during the three and nine months ended September 30, 2022 and 2021 ($ in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Unrealized (losses) gains $ (11,213) $ (1,421) $ (39,569) $ 5,058 Realized gains (641) 909 4,231 2,474 Dividend income 1,191 514 2,737 1,255 Total $ (10,663) $ 2 $ (32,601) $ 8,787 |
Investments in Real Estate Debt
Investments in Real Estate Debt | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Real Estate Debt | Investments in Real Estate Debt The following tables detail the Company's Investments in Real Estate Debt ($ in thousands): September 30, 2022 Type of Security/Loan Weighted Average Coupon Weighted Average Maturity Date (1, 2) Face Amount Cost Basis Fair Value CMBS - Fixed 3.92 % 3/22/2044 $ 17,409 $ 16,628 $ 15,679 CMBS - Floating 5.00 % 5/31/2036 79,412 77,948 75,617 Total 4.81 % 10/26/2037 $ 96,821 $ 94,576 $ 91,296 December 31, 2021 Type of Security/Loan Weighted Average Coupon Weighted Average Maturity Date (1, 2) Face Amount Cost Basis Fair Value CMBS - Fixed 4.02 % 5/13/2042 $ 3,219 $ 3,300 $ 3,300 CMBS - Floating 2.10 % 1/16/2037 10,976 10,880 10,883 Total 2.54 % 4/02/2038 $ 14,195 $ 14,180 $ 14,183 (1) Weighted by face amount The following table details the collateral type of the properties securing the Company's investments in real estate debt ($ in thousands): September 30, 2022 December 31, 2021 Collateral Cost Basis Fair Value Percentage based on Fair Value Cost Basis Fair Value Percentage based on Fair Value Industrial $ 28,341 $ 27,332 29.9 % $ 5,163 $ 5,163 36.4 % Multifamily 13,518 13,068 14.4 % — — — % Office 11,445 11,086 12.2 % 2,497 2,496 17.6 % Diversified 10,840 10,256 11.2 % 1,788 1,795 12.6 % Cold Storage 9,418 9,261 10.1 % — — — % Retail 5,250 5,141 5.6 % 1,791 1,792 12.6 % Hotel 4,798 4,674 5.1 % — — — % Net Lease 3,918 3,628 4.0 % 1,513 1,511 10.7 % Manu Housing 3,149 3,145 3.4 % — — — % Self-Storage 2,494 2,351 2.6 % — — — % Life Science 1,405 1,354 1.5 % 1,428 1,426 10.1 % Total $ 94,576 $ 91,296 100.0 % $ 14,180 $ 14,183 100.0 % The following table details the credit rating of the Company's investments in real estate debt ($ in thousands): September 30, 2022 December 31, 2021 Credit Rating (1) Cost Basis Fair Value Percentage based on Fair Value Cost Basis Fair Value Percentage based on Fair Value AAA $ 3,528 $ 3,372 3.7 % $ 1,788 $ 1,795 12.6 % AA 8,485 8,397 9.2 % — — — % A 25,859 25,110 27.5 % 996 996 7.0 % BBB 54,006 51,871 56.8 % 11,396 11,392 80.4 % BB 2,163 2,101 2.3 % — — — % B 535 445 0.5 % — — — % Total $ 94,576 $ 91,296 100.0 % $ 14,180 $ 14,183 100.0 % (1) Composite rating at the time of purchase. The following table summarizes the Investments in Real Estate Debt as of September 30, 2022 ($ in thousands): Investments in Real Estate Debt Balance as of December 31, 2021 $ 14,183 Additions 81,615 Disposals (1,165) Unrealized losses (3,333) Realized losses (4) Balance at September 30, 2022 $ 91,296 |
Investment in International Aff
Investment in International Affiliated Funds | 9 Months Ended |
Sep. 30, 2022 | |
Schedule of Investments [Abstract] | |
Investment in International Affiliated Funds | Investment in International Affiliated Funds Investment in ECF: ECF was formed in March 2016 as an open-end, Euro-denominated fund that seeks to build a diversified portfolio of high quality and stabilized commercial real estate with good fundamentals (i.e., core real estate) located in or around certain investment cities in Europe selected for their resilience, potential for long-term structural performance and ability to deliver an attractive and stable distribution yield. The Company originally committed to invest approximately $28.4 million (€25.0 million) into ECF and subsequently increased its commitment by $51.0 million (€45.0 million). As of September 30, 2022, the Company had fully satisfied both commitments. As described in Note 2, the Company records its investment in ECF using the equity method on its Consolidated Balance Sheets. While the Company has strategies to manage the foreign exchange risk associated with its investment made in Euros, there can be no assurance that these strategies will be successful or that foreign exchange fluctuations will not negatively impact the Company’s financial performance and results of operations in a material manner. The following table summarizes the equity investment in Unconsolidated International Affiliated Funds from ECF as of September 30, 2022 ($ in thousands): Investment in ECF Balance as of December 31, 2021 $ 79,097 Income distribution (1,068) Income from equity investment in unconsolidated international affiliated fund 6,080 Foreign currency translation adjustment (11,820) Balance at September 30, 2022 $ 72,289 The income from equity investments in unconsolidated international affiliated funds from ECF was $2.3 million and $6.1 million for the three and nine months ended September 30, 2022, respectively. Income from equity investments in unconsolidated international affiliated funds from ECF was $0.2 million and $0.4 million for the three and nine months ended September 30, 2021, respectively. Investment in APCF: APCF was launched in November 2018 as an open-end, U.S. dollar denominated fund that seeks durable income and capital appreciation from a balanced and diversified portfolio of real estate investments in a defined list of investment cities in the Asia-Pacific region. The Company committed to invest $10.0 million into APCF and subsequently, twice increased its commitment by $20.0 million, bringing its total commitment to $50.0 million. As of September 30, 2022, the Company has fully funded its total commitment. As described in Note 2, the Company records its investment in APCF using the equity method on its Consolidated Balance Sheets. The following table summarizes the equity investment in Unconsolidated International Affiliated Funds from APCF as of September 30, 2022 ($ in thousands): Investment in APCF Balance as of December 31, 2021 $ 51,948 Income distribution (620) Loss from equity investment in unconsolidated international affiliated fund (659) Balance at September 30, 2022 $ 50,669 The loss from equity investments in unconsolidated international affiliated funds from APCF for the three and nine months ended September 30, 2022 was $1.9 million and $0.7 million. Income from equity investments in unconsolidated international affiliated funds from APCF for each of the three and nine months ended September 30, 2021 was $1.5 million. |
Investments in Commercial Mortg
Investments in Commercial Mortgage Loans | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Commercial Mortgage Loans | Investments in Commercial Mortgage Loans On November 9, 2021, the Company originated a floating rate senior mortgage and mezzanine loan to finance the acquisition of an office property in Farmington, Massachusetts, amounting to $63.0 million and has committed to fund an additional $30.4 million for future renovations of the property. On November 16, 2021, the Company originated a floating rate senior mortgage and mezzanine loan in the amount of $77.5 million to finance the acquisition of a multifamily property in Seattle, Washington, with additional commitments to fund $11.1 million for future renovations. On March 28, 2022, the Company originated a floating rate senior mortgage and mezzanine loan to finance the acquisition and reposition of five multi-family properties located in Tucson, Arizona, amounting to $92.4 million and have committed to fund an additional $9.3 million for future renovations of the property. The advance rate was 70.9% loan to value ("LTV") with an in-place debt yield of 5.25%. In July 2022, the Company originated two senior and mezzanine loans to finance the acquisitions of multifamily properties located in Kissimmee, Florida and Scottsdale, Arizona amounting to $136.8 million, with commitments to fund an additional $1.0 million for future renovations. During the nine months ended September 30, 2022, the Company sold three senior loans to unaffiliated parties and retained the subordinate mortgages, receiving total proceeds of $157.4 million, which are net of disposition fees and additional fundings. The sales did not qualify for sale accounting under GAAP and as such, the loans were not de-recognized. For the three and nine months ended September 30, 2022, the Company recognized interest income and loan origination fee income from its investment in its commercial mortgage loans of $5.6 million and $9.5 million, respectively. For the three and nine months ended September 30, 2021, the Company did not have a commercial mortgage loan investment. For the three and nine months ended September 30, 2022, the Company had unrealized gains (losses) on commercial mortgage loans of $0.7 million and $(1.6) million, respectively. For the three and nine months ended September 30, 2021, the Company did not have a commercial mortgage loan investment. The following is a reconciliation of the beginning and ending balances for the Company’s investment in commercial mortgage loans for the nine months ended September 30, 2022 ($ in thousands): Investment in Commercial Mortgage Loans Balance as of December 31, 2021 $ 140,512 Loan originations 229,095 Additional fundings 23,937 Net unrealized loss (1) (2,459) Balance as of September 30, 2022 $ 391,085 |
Intangibles
Intangibles | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities consisted of the following ($ in thousands): September 30, 2022 December 31, Intangible assets: In-place lease intangibles $ 85,853 $ 53,031 Above-market lease intangibles 13,030 493 Leasing commissions 38,169 20,559 Other intangibles 16,614 5,666 Total intangible assets 153,666 79,749 Accumulated amortization: In-place lease intangibles (27,840) (16,282) Above-market lease intangibles (392) (77) Leasing commissions (7,658) (5,055) Other intangibles (2,128) (862) Total accumulated amortization (38,018) (22,276) Intangible assets, net $ 115,648 $ 57,473 Intangible liabilities: Below-market lease intangibles $ (42,694) $ (25,841) Accumulated amortization 6,127 3,319 Intangible liabilities, net $ (36,567) $ (22,522) Amortization expense relating to intangible assets was $6.0 million and $15.7 million for the three and nine months ended September 30, 2022, respectively. Amortization expense relating to intangible assets was $4.3 million and $8.5 million, respectively, for the three and nine months ended September 30, 2021. Income from the amortization of intangible liabilities was $1.1 million and $2.8 million for the three and nine months ended September 30, 2022, respectively. Income from the amortization of intangible liabilities was $0.5 million and $1.4 million, respectively, for the three and nine months ended September 30, 2021. The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter is as follows ($ in thousands): In-Place Lease Above-Market Lease Intangibles Leasing Commissions Other Below-Market 2022 (remaining) $ 4,988 $ 623 $ 1,371 $ 749 $ (1,297) 2023 11,905 1,901 4,932 2,746 (4,893) 2024 9,552 1,852 4,715 2,471 (4,713) 2025 7,791 1,786 4,175 2,158 (4,305) 2026 5,786 1,727 3,437 1,715 (3,919) Thereafter 17,991 4,749 11,881 4,647 (17,440) $ 58,013 $ 12,638 $ 30,511 $ 14,486 $ (36,567) As of September 30, 2022, the weighted-average amortization periods for the acquired in-place lease intangibles, above-market lease intangibles, leasing commissions, other intangibles and below-market lease intangibles of the properties acquired were 6, 6, 7, 9, and 12 years, respectively. |
Credit Facility
Credit Facility | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility On October 24, 2018, the Company entered into a credit agreement (“Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent and lead arranger. The Credit Agreement provided for aggregate commitments of up to $60.0 million for unsecured revolving loans, with an accordion feature that may increase the aggregate commitments to up to $500.0 million (the “Credit Facility”). Loans outstanding under the Credit Facility bore interest, at Nuveen OP’s option, at either an adjusted base rate or an adjusted 30-day LIBOR rate, in each case, plus an applicable margin. The applicable margin ranged from 1.30% to 1.90% for borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of Nuveen OP and its subsidiaries. On September 30, 2021, Wells Fargo Bank, N.A., the Company and Nuveen OP amended the Credit Agreement to increase the Credit Facility to $335.0 million in aggregate commitments, comprised of a $235.0 million revolving facility, and a senior delayed draw term loan facility in the aggregate amount of up to $100.0 million (the “DDTL Facility”). Loans under the DDTL Facility may be borrowed in up to three advances, each in a minimum amount of $30.0 million. The Credit Facility will terminate, and all amounts outstanding thereunder will be due and payable in full, on September 30, 2024 (the “Revolving Termination Date”), with two additional one-year extension options held by Nuveen OP, including the payment of an extension fee of 0.125% of the aggregate commitment. The DDTL Facility will mature, and all amounts outstanding thereunder will be due and payable in full, on September 30, 2026. Loans outstanding under the Credit Facility bear interest, at Nuveen OP’s option, at either an adjusted base rate or an adjusted LIBOR rate, in each case, plus an applicable margin. The applicable margin ranges from 0.30% to 0.90% for Credit Facility borrowings for base rate loans, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. The applicable margin ranges from 1.30% to 1.90% for Credit Facility borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. Loans outstanding under the DDTL Facility bear interest, at the Nuveen OP’s option, at either an adjusted base rate or an adjusted LIBOR rate, in each case, plus an applicable margin. The applicable margin ranges from 0.25% to 0.85% for DDTL Facility borrowings for base rate loans, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. The applicable margin ranges from 1.25% to 1.85% for DDTL Facility borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. There is an unused fee of 0.15% if the usage is greater than or equal to 50% of the aggregate commitments and 0.25% of the usage is less than 50% of the aggregate commitments. There is a ticking fee on the DDTL Facility equal to 0.15% of the undisbursed portion of the DDTL Facility. An upfront fee of 40 basis points was payable at closing. In July 2017, the Financial Conduct Authority (the authority that regulates LIBOR) announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee has proposed that the Secured Overnight Financing Rate (“SOFR”) is the rate that represents best practice as the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR. The consequence of these developments cannot be entirely predicted but could include an increase in the cost of our variable rate indebtedness. The following is a summary of the Credit Facility ($ in thousands): Principal Balance Outstanding Indebtedness Interest Rate Maturity Date Maximum Facility Size September 30, 2022 December 31, 2021 Revolving facility L+applicable margin (1) September 30, 2024 $ 235,000 125,000 $ 163,000 DDTL facility L+applicable margin (1) September 30, 2026 100,000 100,000 75,000 Credit facility $ 335,000 $ 225,000 $ 238,000 (1) The weighted-average interest rate for the three and nine months ended September 30, 2022 was 4.0% and 2.9%, respectively. As of September 30, 2022, the Company had $225.0 million in borrowings and had outstanding accrued interest of $2.4 million under the Credit Facility. For the three and nine months ended September 30, 2022, the Company incurred $1.8 million and $4.0 million in interest expense under the Credit Facility, respectively. For the three and nine months ended September 30, 2021, the Company incurred $0.4 million and $1.2 million in interest expense under the Credit Facility, respectively. As of September 30, 2022, the Company was in compliance with all loan covenants with respect to the Credit Agreement. The following table presents future principal payments due under the Credit Facility as of September 30, 2022 ($ in thousands): Year Credit Facility 2022 (remaining) $ — 2023 — 2024 125,000 2025 — 2026 100,000 Thereafter — Total $ 225,000 The following table is a summary of the Company's Mortgages Payable secured by the Company’s properties ($ in thousands): Principal Balance Outstanding Indebtedness Lender Interest Rate Maturity Date Maximum Principal Amount September 30, 2022 December 31, 2021 Fixed rate mortgages payable: Main Street at Kingwood Nationwide Life Insurance Company 3.15% 12/01/26 $ 48,000 $ 48,000 $ 48,000 Tacara Steiner Ranch Brighthouse Life Insurance 2.62% 06/01/28 28,750 28,750 28,750 Signature at Hartwell Allstate/American Heritage 3.01% 12/01/28 29,500 29,500 29,500 GFI Grocery Anchored Portfolio Nationwide/Amerant/Synovous 2.98% - 3.40% Various 69,657 69,657 — Total mortgages payable 175,907 106,250 Deferred financing costs, net (744) (636) Discount on assumed mortgage notes (7,525) — Mortgages payable, net $ 167,638 $ 105,614 As of September 30, 2022, the Company had $175.9 million in borrowings and $0.3 million in accrued interest outstanding under its mortgages payable. As of December 31, 2021, the Company had $106.3 million in borrowings and $0.3 million in accrued interest outstanding under its mortgages payable. For the three and nine months ended September 30, 2022, the Company incurred $0.8 million and $2.4 million in interest expense on mortgages payable, respectively. For the three and nine months ended September 30, 2021, the Company incurred $0.6 million and $1.4 million in interest expense on mortgages payable, respectively. The following table presents the future principal payments due under the mortgages payable as of September 30, 2022 ($ in thousands): Year Mortgages Payable 2022 (remaining) $ — 2023 — 2024 — 2025 — 2026 53,579 Thereafter 122,328 Total $ 175,907 The Company finances the acquisition of certain commercial mortgage loans through the use of "note-on-note" transactions. The notes bear interest based on competitive market rates determined at the time of issuance. The notes involve leverage risk and also the risk that the market value of the collateral will decline below the amount of the funding advanced. As of September 30, 2022, the Company has one note outstanding with Capital One which matures on April 9, 2025. As of September 30, 2022, the total principal amount of the note was $69.3 million and the Company had $0.2 million in accrued interest outstanding. Interest expense incurred for the three and nine months ended September 30, 2022 was $0.7 million and $0.8 million, respectively, based on a rate of SOFR plus 1.65%. The following table presents the future principal payments due under the Note Payable as of September 30, 2022 ($ in thousands): Year Note Payable 2022 (remaining) $ — 2023 — 2024 — 2025 69,263 2026 — Thereafter — Total $ 69,263 |
Mortgages Payable
Mortgages Payable | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Mortgages Payable | Credit Facility On October 24, 2018, the Company entered into a credit agreement (“Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent and lead arranger. The Credit Agreement provided for aggregate commitments of up to $60.0 million for unsecured revolving loans, with an accordion feature that may increase the aggregate commitments to up to $500.0 million (the “Credit Facility”). Loans outstanding under the Credit Facility bore interest, at Nuveen OP’s option, at either an adjusted base rate or an adjusted 30-day LIBOR rate, in each case, plus an applicable margin. The applicable margin ranged from 1.30% to 1.90% for borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of Nuveen OP and its subsidiaries. On September 30, 2021, Wells Fargo Bank, N.A., the Company and Nuveen OP amended the Credit Agreement to increase the Credit Facility to $335.0 million in aggregate commitments, comprised of a $235.0 million revolving facility, and a senior delayed draw term loan facility in the aggregate amount of up to $100.0 million (the “DDTL Facility”). Loans under the DDTL Facility may be borrowed in up to three advances, each in a minimum amount of $30.0 million. The Credit Facility will terminate, and all amounts outstanding thereunder will be due and payable in full, on September 30, 2024 (the “Revolving Termination Date”), with two additional one-year extension options held by Nuveen OP, including the payment of an extension fee of 0.125% of the aggregate commitment. The DDTL Facility will mature, and all amounts outstanding thereunder will be due and payable in full, on September 30, 2026. Loans outstanding under the Credit Facility bear interest, at Nuveen OP’s option, at either an adjusted base rate or an adjusted LIBOR rate, in each case, plus an applicable margin. The applicable margin ranges from 0.30% to 0.90% for Credit Facility borrowings for base rate loans, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. The applicable margin ranges from 1.30% to 1.90% for Credit Facility borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. Loans outstanding under the DDTL Facility bear interest, at the Nuveen OP’s option, at either an adjusted base rate or an adjusted LIBOR rate, in each case, plus an applicable margin. The applicable margin ranges from 0.25% to 0.85% for DDTL Facility borrowings for base rate loans, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. The applicable margin ranges from 1.25% to 1.85% for DDTL Facility borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. There is an unused fee of 0.15% if the usage is greater than or equal to 50% of the aggregate commitments and 0.25% of the usage is less than 50% of the aggregate commitments. There is a ticking fee on the DDTL Facility equal to 0.15% of the undisbursed portion of the DDTL Facility. An upfront fee of 40 basis points was payable at closing. In July 2017, the Financial Conduct Authority (the authority that regulates LIBOR) announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee has proposed that the Secured Overnight Financing Rate (“SOFR”) is the rate that represents best practice as the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR. The consequence of these developments cannot be entirely predicted but could include an increase in the cost of our variable rate indebtedness. The following is a summary of the Credit Facility ($ in thousands): Principal Balance Outstanding Indebtedness Interest Rate Maturity Date Maximum Facility Size September 30, 2022 December 31, 2021 Revolving facility L+applicable margin (1) September 30, 2024 $ 235,000 125,000 $ 163,000 DDTL facility L+applicable margin (1) September 30, 2026 100,000 100,000 75,000 Credit facility $ 335,000 $ 225,000 $ 238,000 (1) The weighted-average interest rate for the three and nine months ended September 30, 2022 was 4.0% and 2.9%, respectively. As of September 30, 2022, the Company had $225.0 million in borrowings and had outstanding accrued interest of $2.4 million under the Credit Facility. For the three and nine months ended September 30, 2022, the Company incurred $1.8 million and $4.0 million in interest expense under the Credit Facility, respectively. For the three and nine months ended September 30, 2021, the Company incurred $0.4 million and $1.2 million in interest expense under the Credit Facility, respectively. As of September 30, 2022, the Company was in compliance with all loan covenants with respect to the Credit Agreement. The following table presents future principal payments due under the Credit Facility as of September 30, 2022 ($ in thousands): Year Credit Facility 2022 (remaining) $ — 2023 — 2024 125,000 2025 — 2026 100,000 Thereafter — Total $ 225,000 The following table is a summary of the Company's Mortgages Payable secured by the Company’s properties ($ in thousands): Principal Balance Outstanding Indebtedness Lender Interest Rate Maturity Date Maximum Principal Amount September 30, 2022 December 31, 2021 Fixed rate mortgages payable: Main Street at Kingwood Nationwide Life Insurance Company 3.15% 12/01/26 $ 48,000 $ 48,000 $ 48,000 Tacara Steiner Ranch Brighthouse Life Insurance 2.62% 06/01/28 28,750 28,750 28,750 Signature at Hartwell Allstate/American Heritage 3.01% 12/01/28 29,500 29,500 29,500 GFI Grocery Anchored Portfolio Nationwide/Amerant/Synovous 2.98% - 3.40% Various 69,657 69,657 — Total mortgages payable 175,907 106,250 Deferred financing costs, net (744) (636) Discount on assumed mortgage notes (7,525) — Mortgages payable, net $ 167,638 $ 105,614 As of September 30, 2022, the Company had $175.9 million in borrowings and $0.3 million in accrued interest outstanding under its mortgages payable. As of December 31, 2021, the Company had $106.3 million in borrowings and $0.3 million in accrued interest outstanding under its mortgages payable. For the three and nine months ended September 30, 2022, the Company incurred $0.8 million and $2.4 million in interest expense on mortgages payable, respectively. For the three and nine months ended September 30, 2021, the Company incurred $0.6 million and $1.4 million in interest expense on mortgages payable, respectively. The following table presents the future principal payments due under the mortgages payable as of September 30, 2022 ($ in thousands): Year Mortgages Payable 2022 (remaining) $ — 2023 — 2024 — 2025 — 2026 53,579 Thereafter 122,328 Total $ 175,907 The Company finances the acquisition of certain commercial mortgage loans through the use of "note-on-note" transactions. The notes bear interest based on competitive market rates determined at the time of issuance. The notes involve leverage risk and also the risk that the market value of the collateral will decline below the amount of the funding advanced. As of September 30, 2022, the Company has one note outstanding with Capital One which matures on April 9, 2025. As of September 30, 2022, the total principal amount of the note was $69.3 million and the Company had $0.2 million in accrued interest outstanding. Interest expense incurred for the three and nine months ended September 30, 2022 was $0.7 million and $0.8 million, respectively, based on a rate of SOFR plus 1.65%. The following table presents the future principal payments due under the Note Payable as of September 30, 2022 ($ in thousands): Year Note Payable 2022 (remaining) $ — 2023 — 2024 — 2025 69,263 2026 — Thereafter — Total $ 69,263 |
Note Payable
Note Payable | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Note Payable | Credit Facility On October 24, 2018, the Company entered into a credit agreement (“Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent and lead arranger. The Credit Agreement provided for aggregate commitments of up to $60.0 million for unsecured revolving loans, with an accordion feature that may increase the aggregate commitments to up to $500.0 million (the “Credit Facility”). Loans outstanding under the Credit Facility bore interest, at Nuveen OP’s option, at either an adjusted base rate or an adjusted 30-day LIBOR rate, in each case, plus an applicable margin. The applicable margin ranged from 1.30% to 1.90% for borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of Nuveen OP and its subsidiaries. On September 30, 2021, Wells Fargo Bank, N.A., the Company and Nuveen OP amended the Credit Agreement to increase the Credit Facility to $335.0 million in aggregate commitments, comprised of a $235.0 million revolving facility, and a senior delayed draw term loan facility in the aggregate amount of up to $100.0 million (the “DDTL Facility”). Loans under the DDTL Facility may be borrowed in up to three advances, each in a minimum amount of $30.0 million. The Credit Facility will terminate, and all amounts outstanding thereunder will be due and payable in full, on September 30, 2024 (the “Revolving Termination Date”), with two additional one-year extension options held by Nuveen OP, including the payment of an extension fee of 0.125% of the aggregate commitment. The DDTL Facility will mature, and all amounts outstanding thereunder will be due and payable in full, on September 30, 2026. Loans outstanding under the Credit Facility bear interest, at Nuveen OP’s option, at either an adjusted base rate or an adjusted LIBOR rate, in each case, plus an applicable margin. The applicable margin ranges from 0.30% to 0.90% for Credit Facility borrowings for base rate loans, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. The applicable margin ranges from 1.30% to 1.90% for Credit Facility borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. Loans outstanding under the DDTL Facility bear interest, at the Nuveen OP’s option, at either an adjusted base rate or an adjusted LIBOR rate, in each case, plus an applicable margin. The applicable margin ranges from 0.25% to 0.85% for DDTL Facility borrowings for base rate loans, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. The applicable margin ranges from 1.25% to 1.85% for DDTL Facility borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of the Nuveen OP and its subsidiaries. There is an unused fee of 0.15% if the usage is greater than or equal to 50% of the aggregate commitments and 0.25% of the usage is less than 50% of the aggregate commitments. There is a ticking fee on the DDTL Facility equal to 0.15% of the undisbursed portion of the DDTL Facility. An upfront fee of 40 basis points was payable at closing. In July 2017, the Financial Conduct Authority (the authority that regulates LIBOR) announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee has proposed that the Secured Overnight Financing Rate (“SOFR”) is the rate that represents best practice as the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR. The consequence of these developments cannot be entirely predicted but could include an increase in the cost of our variable rate indebtedness. The following is a summary of the Credit Facility ($ in thousands): Principal Balance Outstanding Indebtedness Interest Rate Maturity Date Maximum Facility Size September 30, 2022 December 31, 2021 Revolving facility L+applicable margin (1) September 30, 2024 $ 235,000 125,000 $ 163,000 DDTL facility L+applicable margin (1) September 30, 2026 100,000 100,000 75,000 Credit facility $ 335,000 $ 225,000 $ 238,000 (1) The weighted-average interest rate for the three and nine months ended September 30, 2022 was 4.0% and 2.9%, respectively. As of September 30, 2022, the Company had $225.0 million in borrowings and had outstanding accrued interest of $2.4 million under the Credit Facility. For the three and nine months ended September 30, 2022, the Company incurred $1.8 million and $4.0 million in interest expense under the Credit Facility, respectively. For the three and nine months ended September 30, 2021, the Company incurred $0.4 million and $1.2 million in interest expense under the Credit Facility, respectively. As of September 30, 2022, the Company was in compliance with all loan covenants with respect to the Credit Agreement. The following table presents future principal payments due under the Credit Facility as of September 30, 2022 ($ in thousands): Year Credit Facility 2022 (remaining) $ — 2023 — 2024 125,000 2025 — 2026 100,000 Thereafter — Total $ 225,000 The following table is a summary of the Company's Mortgages Payable secured by the Company’s properties ($ in thousands): Principal Balance Outstanding Indebtedness Lender Interest Rate Maturity Date Maximum Principal Amount September 30, 2022 December 31, 2021 Fixed rate mortgages payable: Main Street at Kingwood Nationwide Life Insurance Company 3.15% 12/01/26 $ 48,000 $ 48,000 $ 48,000 Tacara Steiner Ranch Brighthouse Life Insurance 2.62% 06/01/28 28,750 28,750 28,750 Signature at Hartwell Allstate/American Heritage 3.01% 12/01/28 29,500 29,500 29,500 GFI Grocery Anchored Portfolio Nationwide/Amerant/Synovous 2.98% - 3.40% Various 69,657 69,657 — Total mortgages payable 175,907 106,250 Deferred financing costs, net (744) (636) Discount on assumed mortgage notes (7,525) — Mortgages payable, net $ 167,638 $ 105,614 As of September 30, 2022, the Company had $175.9 million in borrowings and $0.3 million in accrued interest outstanding under its mortgages payable. As of December 31, 2021, the Company had $106.3 million in borrowings and $0.3 million in accrued interest outstanding under its mortgages payable. For the three and nine months ended September 30, 2022, the Company incurred $0.8 million and $2.4 million in interest expense on mortgages payable, respectively. For the three and nine months ended September 30, 2021, the Company incurred $0.6 million and $1.4 million in interest expense on mortgages payable, respectively. The following table presents the future principal payments due under the mortgages payable as of September 30, 2022 ($ in thousands): Year Mortgages Payable 2022 (remaining) $ — 2023 — 2024 — 2025 — 2026 53,579 Thereafter 122,328 Total $ 175,907 The Company finances the acquisition of certain commercial mortgage loans through the use of "note-on-note" transactions. The notes bear interest based on competitive market rates determined at the time of issuance. The notes involve leverage risk and also the risk that the market value of the collateral will decline below the amount of the funding advanced. As of September 30, 2022, the Company has one note outstanding with Capital One which matures on April 9, 2025. As of September 30, 2022, the total principal amount of the note was $69.3 million and the Company had $0.2 million in accrued interest outstanding. Interest expense incurred for the three and nine months ended September 30, 2022 was $0.7 million and $0.8 million, respectively, based on a rate of SOFR plus 1.65%. The following table presents the future principal payments due under the Note Payable as of September 30, 2022 ($ in thousands): Year Note Payable 2022 (remaining) $ — 2023 — 2024 — 2025 69,263 2026 — Thereafter — Total $ 69,263 |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets and Other Liabilities | Other Assets and Other Liabilities The following table summarizes the components of Other Assets ($ in thousands): September 30, 2022 December 31, 2021 Straight-line rent receivable $ 8,280 $ 6,451 Receivables 6,361 3,245 Deferred financing costs on credit facility, net 1,302 1,710 Prepaid expenses 2,366 1,154 Other 373 7,985 Total $ 18,682 $ 20,545 The following table summarizes the components of Accounts Payable, Accrued Expenses, and Other Liabilities ($ in thousands): September 30, 2022 December 31, 2021 Real estate taxes payable $ 9,971 $ 3,072 Accounts payable and accrued expenses 21,124 5,733 Prepaid rental income 1,760 2,213 Tenant security deposits 6,032 2,010 Accrued interest expense 2,979 462 Other 3,977 1,320 Total $ 45,843 $ 14,810 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Fees Due to Related Party Pursuant to the advisory agreement between the Company, Nuveen OP, and the Advisor, the Advisor is responsible for sourcing, evaluating and monitoring the Company’s investment opportunities and making decisions related to the acquisition, management, financing and disposition of the Company’s assets, in accordance with the Company’s investment objectives, guidelines, policies and limitations, subject to oversight by the Company’s board of directors. The Advisor will receive fees and compensation, payable monthly in arrears, in connection with the offering and ongoing management of the assets of the Company, as follows: Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Advisory Fee (% of NAV) 1.25% 1.25% 1.25% 1.25% 0.65% For the three and nine months ended September 30, 2022, the Company incurred advisory fee expenses of $5.9 million and $14.5 million, respectively. For the three and nine months ended September 30, 2021, the Company incurred advisory fee expenses of $2.0 million and $4.2 million, respectively. As of September 30, 2022 and December 31, 2021, the Company had accrued advisory fees of approximately $2.1 million and $1.2 million, respectively, which has been included in Accounts Payable, Accrued Expenses, and Other Liabilities on the Company’s Consolidated Balance Sheets. The Company may retain certain of the Advisor’s affiliates for necessary services relating to the Company’s investments or its operations, including construction, special servicing, leasing, development, property oversight and other property management services, as well as services related to mortgage servicing, group purchasing, healthcare, consulting/brokerage, capital markets/credit origination, loan servicing, property, title and other types of insurance, management consulting and other similar operational matters. The Company has engaged NexCore Companies LLC ("NexCore"), an affiliate of TIAA, to provide property management, accounting and leasing services for certain of its investments in healthcare properties. NexCore is a real estate development company focused exclusively on development, acquisition, and management of healthcare real estate. The Company may also enter into joint ventures with NexCore, and pursuant to the terms of the joint venture agreements, NexCore may receive a promote from the joint venture. The Company has entered in eight joint venture arrangements with NexCore as of September 30, 2022, which have not incurred any promote payments. Additionally, as part of this engagement, the Company may pay acquisition fees to NexCore for sourcing deals. The Company entered in an agreement with Imajn Homes Holdings ("Sparrow"), an affiliate of TIAA, to assist the Company in acquiring and managing single-family housing in the United States. Sparrow is a vertically integrated company with acquisition, asset, property and construction management capabilities. As part of the joint venture arrangement with Sparrow, if certain internal rate of return hurdles are met, Sparrow will participate in the profits based on a set criteria at the crystallization event. Additionally, Sparrow has the ability to exercise the crystallization event between the fifth and sixth anniversaries from the effective date of the agreement. Subsequent to entering in the agreement, the Company committed $150.0 million to acquire single family rentals identified by Sparrow. The Company entered into a master services agreement with Nuveen Real Estate Project Management Services, LLC (“Nuveen RE PMS”), an affiliate of the Advisor, for the purpose of Nuveen RE PMS providing professional services in connection with certain of the Company's real estate investments. For project management services provided by Nuveen RE PMS, the Company will pay Nuveen RE PMS fees determined by the estimated total cost of the any project; provided that such fees shall not exceed 6% of project costs. For development and management services provided by Nuveen RE PMS, the Company will pay Nuveen RE PMS fees to be determined by the complexity and size of the project; provided that such fees shall not exceed 4% of project costs. No fees have been incurred by the Company to Nuveen RE PMS as of September 30, 2022. The following table is a summary of the Company’s affiliated service providers and the fees incurred by the Company to those service providers ($ in thousands): Affiliate Service Provided Fees Incurred Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 NexCore Property Management $ 107 $ 64 $ 265 $ 141 Acquisition Services 67 91 67 267 Sparrow Property Management 138 6 293 6 Asset Management 149 2 333 2 Nuveen Securities, LLC (the “Dealer Manager”) serves as the dealer manager for the Initial Public Offering and Follow-on Public Offering (together, the "Offerings"). The Dealer Manager is a registered broker-dealer affiliated with the Advisor. The Company’s obligations under the Dealer Manager Agreement to pay stockholder servicing fees with respect to the Class T, Class S and Class D shares distributed in the Offerings shall survive until such shares are no longer outstanding or converted into Class I shares. For the three and nine months ended September 30, 2022, the Company incurred stockholder servicing fees of $1.7 million and $4.2 million, respectively. For the three and nine months ended September 30, 2021, the Company incurred stockholder servicing fees of $0.5 million and $1.0 million, respectively. As of September 30, 2022, the Company accrued approximately $45.3 million of stockholder servicing fees with respect to the outstanding Class T, Class S and Class D common shares, which includes $0.6 million for the current month. The following table presents the upfront selling commissions and dealer manager fees for each class of shares sold in the Offerings, and the stockholder servicing fee per annum based on the aggregate outstanding NAV: Class T Shares Class S Shares Class D Shares Class I Shares Maximum Upfront Selling Commissions (% of Transaction Price) up to 3.0% up to 3.5% up to 1.5% — Maximum Upfront Dealer Manager Fees (% of Transaction Price) up to 0.5% — — — Stockholder Servicing Fee (% of NAV) 0.85% (1) 0.85% 0.25% — (1) Consists of an advisor stockholder servicing fee of 0.65% per annum and a dealer stockholder servicing fee of 0.20% per annum (or other amounts, provided that the sum equals 0.85%), of the aggregate NAV of outstanding Class T shares. The Company will cease paying the stockholder servicing fee with respect to any Class T share, Class S share or Class D share held in a stockholder’s account at the end of the month in which the Dealer Manager, in conjunction with the transfer agent, determines that total upfront selling commissions, dealer manager fees and stockholder servicing fees paid with respect to the shares held within such account would exceed, in the aggregate, 8.75% of the sum of the gross proceeds from the sale of such shares and the aggregate gross proceeds of any shares issued under the distribution reinvestment plan with respect thereto (or, solely with respect to the Class T shares, a lower limit set forth in an agreement between the Dealer Manager and the applicable participating broker-dealer in effect on the date that such shares were sold). At the end of such month, each Class T share, Class S share and Class D share held in a stockholder’s account will convert into a number of Class I shares (including any fractional shares) with an equivalent aggregate NAV as such share. The Company accrues the cost of the stockholder servicing fee as an offering cost at the time each Class T, Class S and Class D share is sold. There is not a stockholder servicing fee with respect to Class I shares. If not already converted into Class I shares upon a determination that total upfront selling commissions, dealer manager fees and stockholder servicing fees paid with respect to such shares would exceed the applicable limit as described above, each Class T share, Class S share, Class D share and Class N share held in a stockholder’s account will automatically and without any action on the part of the holder thereof convert into a number of Class I shares (including any fractional shares) with an equivalent NAV as such share on the earliest of (i) a listing of Class I shares, (ii) the Company’s merger or consolidation with or into another entity or the sale or other disposition of all or substantially all of the Company’s assets, in each case in a transaction in which stockholders receive cash and/or listed securities or (iii) after termination of the primary portion of the offering in which such Class T shares, Class S shares and Class D shares were sold, the end of the month in which the Company, with the assistance of the dealer manager, determines that all underwriting compensation from all sources in connection with the public offering in which the shares were sold, including upfront selling commissions, the stockholder servicing fee and other underwriting compensation, is equal to 10% of the gross proceeds of the primary portion of such Offering. In addition, immediately before any liquidation, dissolution or winding up, each Class T share, Class S share, Class D share and Class N shares will automatically convert into a number of Class I shares (including any fractional shares) with an equivalent NAV as such share. Other Related Party Transactions The following table summarizes the components of Due to Affiliates ($ in thousands): September 30, December 31, Accrued stockholder servicing fees (1) $ 45,330 $ 25,358 Advanced organization and offering expenses 4,021 4,648 Total $ 49,351 $ 30,006 (1) The Company accrues the full amount of future stockholder servicing fees payable to the Dealer Manager for Class T, Class S and Class D shares up to 8.75% of gross proceeds at the time such shares are sold. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Offerings, which provide, among other things, for the re-allowance of the full amount of the selling commissions and the dealer manager fee and all or a portion of stockholder servicing fees received by the Dealer Manager to such selected dealers. The Company will no longer incur the stockholder servicing fee after September 2056 in connection with those Class T, Class S and Class D shares currently outstanding; the fees may end sooner if the total underwriting compensation paid in respect of the Offering reaches 10.0% of the gross offering proceeds or if the Company completes a liquidity event. The Company will incur stockholder servicing fees in connection with future issuances of Class D shares for a 29.5-year period from the date of issuance and seven years for Class T shares and Class S shares from date of issuance, assuming the maximum up-front selling commissions and dealer manager fees are paid. See "Note 17. Equity and Redeemable Non-controlling Interest" for additional information related to TIAA's purchase of $300.0 million Class N shares of the Company's common stock through its wholly-owned subsidiary. See "Note 6. Investment in International Affiliated Funds" for additional information related to the Company's investment in International Affiliated Funds. |
Economic Dependency
Economic Dependency | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Economic Dependency | Economic DependencyThe Company depends on the Advisor and its affiliates for certain services that are essential to it, including the sale of the Company’s shares of common stock, acquisition and disposition decisions, and certain other responsibilities. In the event that the Advisor and its affiliates are unable to provide such services, the Company would be required to find alternative service providers. |
Risks and Contingencies
Risks and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Risks and Contingencies | Risks and Contingencies Concentrations of risk may arise when a number of properties are located in a similar geographic region such that the economic conditions of that region could impact tenants’ obligations to meet their contractual obligations or cause the values of individual properties to decline. Additionally, concentrations of risk may arise if any one tenant comprises a significant amount of the Company's rent, or if tenants are concentrated in a particular industry. As of September 30, 2022, the Company had no significant concentrations of tenants, as no single tenant had annual contract rent that made up more than 6% of the rental income of the Company. There are no significant lease expirations scheduled to occur over the next twelve months. Based on its assessment, the Company has concluded that there is no impairment of its investments as of September 30, 2022. In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Advisor expects the risk of loss to be remote. |
Tenant Leases
Tenant Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Tenant Leases | Tenant Leases The Company’s real estate properties are leased to tenants under operating lease agreements which expire on various dates. Certain leases have the option to extend or terminate at the tenant’s discretion, with termination options resulting in additional fees due to the Company. Rental income is recognized on a straight-line basis. The leases do not have material variable payments, material residual value guarantees or material restrictive covenants. Rental income for the three and nine months ended September 30, 2022 was $31.4 million and $77.6 million, respectively. Rental income for the three and nine months ended September 30, 2021 was $15.4 million and $38.8 million, respectively. Aggregate minimum annual rentals for wholly-owned real estate investments owned by the Company through the non-cancelable lease term, excluding short-term multifamily, self-storage and single family rentals are as follows ($ in thousands): Year September 30, 2022 2022 (remaining) $ 19,008 2023 73,935 2024 72,398 2025 64,658 2026 53,992 Thereafter 174,045 Total $ 458,036 Certain leases provide for additional rental amounts based upon the recovery of actual operating expenses in excess of specified base amounts, sales volume or contractual increases as defined in the lease agreement. These contractual contingent rentals are not included in the table above. |
Equity and Redeemable Non-contr
Equity and Redeemable Non-controlling Interest | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity and Redeemable Non-controlling Interest | Equity and Redeemable Non-controlling Interest Authorized Capital As of September 30, 2022, the Company had authority to issue a total of 2.2 billion shares of capital stock consisting of the following: Classification Number of Shares Par Value Class T Shares 500,000 $ 0.01 Class S Shares 500,000 $ 0.01 Class D Shares 500,000 $ 0.01 Class I Shares 500,000 $ 0.01 Class N Shares 100,000 $ 0.01 Preferred Stock 100,000 $ 0.01 Total 2,200,000 The Company’s board of directors may amend the Charter from time to time, without stockholder approval, to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Company has authority to issue, or to issue additional classes of stock. Preferred Stock On January 2, 2019, the Company filed Articles Supplementary to the Charter, which set forth the rights, preferences and privileges of the Company’s 12.0% Series A cumulative non-voting preferred stock (“Series A Preferred Stock”). On January 4, 2019, the Company sold 125 shares of its Series A Preferred Stock at a purchase price of $1,000 per share in a private placement exempt from registration under the Securities Act of 1933, as amended. The offering of the Series A Preferred Stock was effected for the purpose of the Company having at least 100 stockholders to satisfy one of the qualifications required in order to qualify as a REIT under the Code. On March 31, 2021, the Company redeemed all of the 125 outstanding shares of the Series A Preferred Stock in accordance with its Charter. On October 8, 2020, a subsidiary of Nuveen OP sold 125 shares of preferred stock in a private placement to effectuate the formation of a REIT established to hold the Company's industrial property located in Massachusetts for tax management purposes. Common Stock As of September 30, 2022, the Company had issued and outstanding 16,626,244 shares of Class T common stock, 42,786,403 shares of Class S common stock, 8,000,887 shares of Class D common stock, 72,496,315 shares of Class I common stock, and 29,730,608 shares of Class N common stock. The following tables detail the movement in the Company’s outstanding shares of common stock (in thousands): Three Months Ended September 30, 2022 Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Total June 30, 2022 14,693 38,709 7,442 62,601 29,731 153,176 Common stock issued 1,909 3,954 555 9,750 — 16,168 Distribution reinvestment 89 264 49 502 — 904 Common stock repurchased (65) (141) (45) (357) — (608) September 30, 2022 16,626 42,786 8,001 72,496 29,731 169,640 Nine Months Ended September 30, 2022 Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Total December 31, 2021 9,201 23,809 4,649 31,460 29,731 98,850 Common stock issued 7,298 18,795 3,299 40,716 — 70,108 Distribution reinvestment plan 210 633 118 1,083 — 2,044 Vested stock grant — — — 6 — 6 Common stock repurchased (83) (451) (65) (769) — (1,368) September 30, 2022 16,626 42,786 8,001 72,496 29,731 169,640 TIAA has purchased $300.0 million of the Company’s Class N shares of common stock through its wholly owned subsidiary. Per the terms of the agreement between the Company and TIAA, beginning on January 31, 2023, TIAA may submit a portion of its Class N shares for repurchase, provided that after taking into account the repurchase, the total value of TIAA’s aggregate ownership of the Company's Class N shares shall not be less than $300.0 million. Beginning on January 31, 2025, TIAA may submit all of its remaining shares for repurchase, provided that provided that TIAA must continue to maintain ownership of the $200,000 initial investment in the Company’s shares for so long as the Advisor or its affiliate serves as the Company’s advisor. Notwithstanding the foregoing, the total amount of repurchases of Class N shares eligible for repurchase will be limited to no more than 0.67% of the Company’s aggregate NAV per month and no more than 1.67% of the Company’s aggregate NAV per calendar quarter; provided that , if in any month or quarter the total amount of aggregate repurchases of all classes of the Company’s common stock do not reach the overall share repurchase plan limits of 2% of the aggregate NAV per month and 5% of the aggregate NAV per calendar quarter, the above repurchase limits on the Class N shares shall not apply to that month or quarter and TIAA shall be entitled to submit shares for repurchase up to the overall share repurchase plan limits. Restricted Stock Grants Through June 30, 2022, the Company’s independent directors received a $75,000 annual retainer and the chairperson of the audit committee received an additional $15,000 annual retainer. The Company paid 75% of this compensation in cash in quarterly installments and the remaining 25% in the form of an annual grant of restricted stock based on the most recent transaction price that generally vests one year from the date of grant. Effective July 1, 2022, each independent director receives a $100,000 annual retainer, the chairperson of the audit committee receives an additional $20,000 annual retainer and the lead independent director receives an additional $5,000 annual retainer. The Company pays 50% of this compensation in cash, unrestricted stock, or a combination thereof in quarterly installments and the remaining 50% in the form of an annual grant of restricted stock based on the most recent transaction price. The restricted stock generally vests one year from the date of grant. Distribution Reinvestment Plan The Company has adopted a distribution reinvestment plan whereby holders of Class T, Class S, Class D and Class I shares (other than investors in certain states or who are clients of a participating broker-dealer that does not permit automatic enrollment in the distribution reinvestment plan) have their cash distributions automatically reinvested in additional shares of common stock unless they elect to receive their distributions in cash. Holders of Class N shares are not eligible to participate in the distribution reinvestment plan and receive their distributions in cash. Investors who are clients of a participating broker-dealer that does not permit automatic enrollment in the distribution reinvestment plan or are residents of those states that do not allow automatic enrollment receive their distributions in cash unless they elect to have their cash distributions reinvested in additional shares of the Company’s common stock. The per share purchase price for shares purchased pursuant to the distribution reinvestment plan will be equal to the transaction price at the time the distribution is payable, which will generally be equal to the Company’s prior month’s NAV per share for that share class. Stockholders do not pay upfront selling commissions or dealer manager fees when purchasing shares pursuant to the distribution reinvestment plan. The stockholder servicing fees with respect to shares of the Company’s Class T shares, Class S shares and Class D shares are calculated based on the NAV for those shares and may reduce the NAV or, alternatively, the distributions payable with respect to shares of each such class, including shares issued in respect of distributions on such shares under the distribution reinvestment plan. Distributions The Company generally intends to distribute substantially all of its taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to its stockholders each year to comply with the REIT provisions of the Code. Beginning September 30, 2018, the Company established a monthly record date for a quarterly distribution to stockholders on record as of the last day of each applicable month typically payable within 30 days following quarter end. On January 17, 2020, the Company’s board of directors amended the Company’s distribution policy to reflect that the Company intends to pay distributions monthly rather than quarterly going forward, subject to the discretion of the board of directors. Based on the monthly record dates established by the board of directors, the Company accrues for distributions on a monthly basis. As of September 30, 2022 and December 31, 2021, the Company had accrued $9.8 million and $5.3 million in Distributions Payable on the Consolidated Balance Sheets for the September 2022 and December 2021 distributions. For the three and nine months ended September 30, 2022, the Company declared and paid distributions of $27.5 million and $67.8 million, respectively. For the three and nine months ended September 30, 2021, the Company declared and paid distributions in the amount of $10.0 million and $24.0 million, respectively. Each class of common stock receives the same gross distribution per share, which was $0.2190 and $0.6433, respectively, per share for the three and nine months ended September 30, 2022. The net distribution varies for each class based on the applicable advisory fee and stockholder servicing fee, which is deducted from the monthly distribution per share. The following tables detail the aggregate distribution declared for each of the Company's share classes for the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 Class T Common Stock Class S Common Stock Class D Common Stock Class I Common Stock Class N Common Stock Gross distribution per share of common stock $ 0.2190 $ 0.2190 $ 0.2190 $ 0.2190 $ 0.2190 Advisory fee per share of common stock (0.0393) (0.0388) (0.0394) (0.0392) (0.0212) Stockholder servicing fee per share of common stock (0.0282) (0.0280) (0.0093) — — Net distribution per share of common stock $ 0.1515 $ 0.1522 $ 0.1703 $ 0.1798 $ 0.1978 Nine Months Ended September 30, 2022 Class T Common Stock Class S Common Stock Class D Common Stock Class I Common Stock Class N Common Stock Gross distribution per share of common stock $ 0.6433 $ 0.6433 $ 0.6433 $ 0.6433 $ 0.6433 Advisory fee per share of common stock (0.1136) (0.1124) (0.1140) (0.1136) (0.0613) Stockholder servicing fee per share of common stock (0.0831) (0.0824) (0.0254) — — Net distribution per share of common stock $ 0.4466 $ 0.4485 $ 0.5039 $ 0.5297 $ 0.5820 Share Repurchases The Company has adopted a share repurchase plan, whereby on a monthly basis, stockholders may request that the Company repurchase all or any portion of their shares. The Company may choose to repurchase all, some or none of the shares that have been requested to be repurchased at the end of any particular month, in its discretion, subject to any limitations in the share repurchase plan. The total amount of aggregate repurchases of Class T, Class S, Class D, and Class I shares will be limited to 2% of the aggregate NAV per month and 5% of the aggregate NAV per calendar quarter. In addition, if during any consecutive 24-month period, the Company does not have at least one month in which the Company fully satisfies 100% of properly submitted repurchase requests or accepts all properly submitted tenders in a self-tender offer for the Company’s shares, the Company will not make any new investments (excluding short-term cash management investments under 30 days in duration) and will use all available investable assets to satisfy repurchase requests (subject to the limitations under this program) until all outstanding repurchase requests have been satisfied. Shares would be repurchased at a price equal to the transaction price on the applicable repurchase date, subject to any early repurchase deduction. Shares that have not been outstanding for at least one year would be repurchased at 95% of the transaction price. Due to the illiquid nature of investments in real estate, the Company may not have sufficient liquid resources to fund repurchase requests and has established limitations on the amount of funds the Company may use for repurchases during any calendar month and quarter. Further, the Company’s board of directors may modify, suspend or terminate the share repurchase plan. For the three and nine months ended September 30, 2022, the Company repurchased shares of its common stock for $7.6 million and $17.9 million. For the three and nine months ended September 30, 2021, the Company repurchased shares of its common stock for $1.4 million and $2.6 million. The Company had no unfulfilled repurchase requests during the nine months ended September 30, 2022. Redeemable Non-Controlling Interest The Company's affiliated partner has a redeemable non-controlling interest in a joint venture due to crystallization rights, which allows the partner to trigger the payment on the promote. The Redeemable Non-Controlling Interests are recorded at the greater of (i) their carrying amount, adjusted for their share of the allocation of GAAP net income or loss and distributions, or (ii) their redemption value, which is equivalent to the fair value of such interests at the end of each measurement period. As the redemption value was greater than the adjusted carrying value as of September 30, 2022 and December 31, 2021, the Company recorded an allocation adjustment between Additional Paid-In-Capital and Redeemable Non-Controlling Interest. The balance was $0.8 million and $0.3 million as of September 30, 2022 and December 31, 2021. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company operates in eleven reportable segments: healthcare properties, industrial properties, commercial mortgage loans, multifamily properties, retail properties, single-family housing, International Affiliated Funds, office properties, real estate-related securities, self-storage properties and other (corporate). These are operating segments that are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-makers in deciding how to allocate resources and in assessing performance. The Company’s chief executive officer, chief financial officer and head of portfolio management have been identified as the chief operating decision-makers. The Company’s chief operating decision-makers direct the allocation of resources to operating segments based on the profitability and cash flows of each respective segment. The Company believes that segment net operating income is the performance metric that captures the unique operating characteristics of each segment. The following table sets forth the total assets by segment as of September 30, 2022 and December 31, 2021 ($ in thousands): September 30, December 31, Healthcare $ 477,965 $ 185,953 Industrial 434,796 186,502 Commercial Mortgage Loans 391,085 140,512 Multifamily 293,793 303,852 Retail 220,488 82,791 Single-Family Housing 150,785 100,039 International Affiliated Funds 122,958 131,046 Office 121,978 125,563 Real Estate-Related Securities (1) 184,631 108,153 Self-Storage 35,899 — Other (Corporate) 145,901 133,726 Total assets $ 2,580,279 $ 1,498,137 (1) Includes real estate-related securities and real estate debt as shown on the Company's Consolidated Balance Sheets. The following table sets forth the financial results by segment for the three and nine months ended September 30, 2022 and 2021 ($ in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Rental revenues Healthcare $ 8,247 $ 3,439 $ 17,592 $ 7,599 Industrial 8,731 3,794 20,961 10,940 Multifamily 6,916 3,810 19,904 8,805 Office 3,375 2,349 9,365 6,014 Retail 1,714 1,962 5,035 5,389 Self-Storage 312 — 348 — Single-family housing 2,132 4 4,372 4 Total rental revenues 31,427 15,358 77,577 38,751 Rental property operating expenses Healthcare 2,401 784 4,844 1,550 Industrial 2,584 1,310 5,710 3,515 Multifamily 2,612 1,649 8,303 4,022 Office 855 592 2,631 1,629 Retail 416 348 1,168 1,025 Self-Storage 185 — 185 — Single-family housing 987 162 2,545 162 Total rental property operating expenses 10,040 4,845 25,386 11,903 Depreciation and amortization (17,357) (6,962) (43,764) (19,200) Income from commercial mortgage loans 5,587 — 9,479 — Realized and unrealized (loss) income from real estate-related securities (10,663) 2 (32,601) 8,787 Realized and unrealized loss from real estate debt (819) — (3,337) — Realized and unrealized gain (loss) on commercial mortgage loans 670 — (1,578) — Income from equity investments in unconsolidated international affiliated funds 436 1,613 5,421 1,928 General and administrative expenses (2,491) (903) (7,112) (2,834) Advisory fee due to affiliate (7,583) (2,502) (18,720) (5,197) Interest income 1,541 45 3,048 155 Interest expense (4,685) (1,127) (9,628) (3,072) Net (loss) income (13,977) 679 (46,601) 7,415 Net loss attributable to non-controlling interests in third party joint ventures (25) — (47) — Net income attributable to preferred stock 3 4 11 15 Net (loss) income attributable to common stockholders $ (13,955) $ 675 $ (46,565) $ 7,400 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Investments On October 25, 2022, the Company acquired six light industrial buildings and one bulk industrial building portfolio for approximately $135.0 million, located in the high growth market of Dallas-Fort Worth, Texas. On October 26, 2022, the Company sold the senior portion of a commercial mortgage loan for $50.8 million used to finance the acquisition of a Class A, mid-rise community located in Scottsdale, Arizona. Renewal of Advisory Agreement |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries, and in the opinion of management, include all necessary adjustments, consisting of only normal and recurring items, necessary for a fair statement of the Company’s consolidated financial statements as of September 30, 2022 and for the three and nine months ended September 30, 2022 and 2021. Results of operations for the interim periods are not necessarily indicative of results for the entire year. These financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the applicable rules and regulations of the SEC. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. Certain footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed from this report pursuant to the rules of the SEC. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements prepared in accordance with GAAP, and the related notes thereto, that are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 as filed with the SEC. The year-end balance sheet was derived from those audited financial statements. |
Principles of Consolidation | Principles of Consolidation The Company consolidates all entities in which it has a controlling financial interest through majority ownership or voting rights and variable interest entities whereby the Company is the primary beneficiary. In determining whether the Company has a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, the Company considers whether the entity is a variable interest entity (“VIE”) and whether it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has (i) the power to direct the most significant activities impacting the economic performance of the VIE and (ii) the obligation to absorb losses or receive benefits significant to the VIE. Entities that do not qualify as VIEs are generally considered voting interest entities (“VOEs”) and are evaluated for consolidation under the voting interest model. VOEs are consolidated when the Company controls the entity through a majority voting interest or other means. When the requirements for consolidation are not met and the Company has significant influence over the operations of the entity, the investment is accounted for under the equity method of accounting. Equity method investments for which the Company has not elected a fair value option (“FVO”) are initially recorded at cost and subsequently adjusted for the Company’s pro-rata share of net income, contributions and distributions. When the Company elects the FVO, the Company records its share of net asset value of the entity and any related unrealized gains and losses. Each of the Company’s joint ventures are considered to be a VIE or VOE. The Company consolidates these entities because it has the ability to direct the most significant activities of the joint ventures, including unilateral decision making on the disposition of the investments. For select joint ventures, the non-controlling partner’s share of the assets, liabilities, and operations of each joint venture is included in noncontrolling interests as equity of the Company. The non-controlling partner’s interest is generally computed as the joint venture partner’s ownership percentage. Certain of the joint ventures formed by the Company provide the other partner a profits interest based on certain internal rate of return hurdles being achieved. Any profits interest due to the other partner is reported within redeemable non-controlling interests. As of September 30, 2022, and December 31, 2021, the total assets and liabilities of the Company’s consolidated VIEs and VOEs were $228.0 million and $101.7 million, and $53.5 million and $29.7 million, respectively. Such amounts are included on the Company’ Consolidated Balance Sheets. |
Investments in Real Estate | Investments in Real Estate In accordance with the guidance for business combinations, the Company determines whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired is not a business, the Company accounts for the transaction as an asset acquisition. All property acquisitions to date have been accounted for as asset acquisitions. Whether the acquisition of a property acquired is considered a business combination or asset acquisition, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquired entity. In addition, for transactions that will be considered business combinations, the Company will evaluate the existence of goodwill or a gain from a bargain purchase. The Company expenses acquisition-related costs associated with business combinations as they are incurred. The Company capitalizes acquisition-related costs associated with asset acquisitions. Upon acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, above-market and below-market leases, acquired in-place leases, other identified intangible assets and assumed liabilities) and allocates the purchase price to the acquired assets and assumed liabilities. The Company assesses and considers fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as other available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends and market and economic conditions. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including but not limited to the nature and extent of the existing relationship with the tenants, the tenants’ credit quality and expectations of lease renewals. Based on its acquisitions to date, the Company’s allocation to customer relationship intangible assets has not been material. The Company records acquired above-market and below-market leases at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in-place lease and (2) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors to be considered include estimates of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions, legal and other related expenses. Intangible assets and intangible liabilities are recorded as separate components on the Company's Consolidated Balance Sheets. The amortization of acquired above-market and below-market leases is recorded as an adjustment to Rental Revenue on the Company’s Consolidated Statements of Operations. The amortization of in-place leases is recorded as an adjustment to Depreciation and Amortization on the Company's Consolidated Statements of Operations. The cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related adjustments, along with any subsequent improvements to such properties. The Company’s Investments in Real Estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Description Depreciable Life Building 40 years Building, land and site improvements 15-40 years Furniture, fixtures and equipment 3-7 years Lease intangibles Over lease term Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation or amortization are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. Repairs and maintenance are expensed to operations as incurred and are included in Rental Property Operating on the Company’s Consolidated Statements of Operations. The Company’s management reviews its real estate properties for impairment each quarter or when there is an event or change in circumstances that indicates an impaired value. If the carrying amount of the real estate investment is no longer recoverable and exceeds the fair value of such investment, an impairment loss is recognized. The impairment loss is recognized based on the excess of the carrying amount of the asset over its fair value, or fair value, less cost to sell if classified as held for sale. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized and such loss could be material to the Company’s results. If the Company determines that an impairment has occurred, the affected assets are reduced to their fair value or fair value, less cost to sell if classified as held for sale. During the periods presented, no such impairment occurred. |
Investments in Real Estate-Related Securities | Investments in Real Estate-Related Securities The Company reports its investment in real estate-related securities at fair value and any changes in fair value are recorded in the current period earnings. Dividend income is recorded when declared and the resulting dividend income, along with gains and losses are recorded as a component of Realized and Unrealized Income (Loss) from Real Estate-Related Securities on the Company’s Consolidated Statements of Operations. |
Investments in Real Estate Debt | Investments in Real Estate Debt The Company’s investments in real estate debt consists of commercial mortgage-backed securities (“CMBS”), which are securities backed by one or more mortgage loans secured by real estate assets. The Company classifies its CMBS as trading securities and records such investments at fair value. As such, the resulting unrealized gains and losses of its CMBS are recorded as a component of Realized and Unrealized Income (Loss) from Real Estate Debt on the Company’s Consolidated Statements of Operations. Interest income from the Company’s investments in CMBS is recognized over the life of each investment and is recorded on the accrual basis on the Company’s Consolidated Statements of Operations. |
Investments in International Affiliated Funds | Investments in International Affiliated Funds The Company reports its investment in European Cities Partnership SCSp (“ECF”) and Asia Pacific Cities Fund (“APCF”), investment funds managed by an affiliate of TIAA (collectively, the “International Affiliated Funds”), under the equity method of accounting as the Company's ownership interest in each fund does not meet the requirements for consolidation. The equity method income (loss) from the investments in the International Affiliated Funds represents the Company’s allocable share of each fund’s net income or loss, which includes income and expense, realized gains and losses, and unrealized appreciation or depreciation as determined from the financial statements of ECF and APCF (which carry investments at fair value in accordance with the applicable GAAP) and is reported as Income (Loss) from Equity Investment in Unconsolidated International Affiliated Funds on the Company’s Consolidated Statements of Operations. All contributions to or distributions from the investment in the International Affiliated Funds are accrued when notice is received and recorded as a receivable from or payable to the International Affiliated Funds on the Company's Consolidated Balance Sheets. |
Investments in Commercial Mortgage Loan | Investments in Commercial Mortgage Loans The Company originates commercial mortgage loans and elects the fair value option for each. In accordance with the adoption of the fair value option allowed under ASC 825, Financial Instruments, and at the election of the Company, the commercial mortgage loans are stated at fair value and initially valued at the face amount of the loan funding. Subsequently, the commercial mortgage loans are valued at least quarterly by an independent third-party valuation firm with additional oversight being performed by the Advisor’s internal valuation department. The value is based on market factors, such as market interest rates and spreads for comparable loans, the performance of the underlying collateral (such as the loan-to-value ratio and the cash flow of the underlying collateral), and the credit quality of the borrower. The income from the commercial mortgage loans represents interest income and origination fee income, which is reported as Income from Commercial Mortgage Loans on the Company’s Consolidated Statements of Operations. Unrealized gains and losses are recorded as a component of Unrealized Loss on Commercial Mortgage Loan on the Company’s Consolidated Statements of Operations. In the event of a partial or whole sale of the commercial mortgage loan that qualifies for sale accounting under GAAP, the Company derecognizes the corresponding asset and fees paid as part of the partial or whole sale are recognized on the Company’s Consolidated Statements of Operations. |
Senior Loan Participations | Senior Loan Participations In certain instances, the Company finances loans through the non-recourse syndication of a senior loan interest to a third party. Depending on the particular structure of the syndication, the senior loan interest may remain on the Company's Consolidated Balance Sheets or, in other cases, the sale will be recognized and the senior loan interest will no longer be included in its consolidated financial statements. When these sales do not qualify for sale accounting under GAAP, the Company reflects the transaction by recording a loan participations liability at fair value on the Consolidated Balance Sheets, however this gross presentation does not impact Stockholders’ Equity or Net Income. When the sales are recognized, the Consolidated Balance Sheets only includes the remaining subordinate loan and not the non-consolidated senior interest sold. |
Note Payable | Note Payable The Company finances the acquisition of certain mortgage loans through the use of "note-on-note" transactions in which the Company pledges mortgage loans as collateral to secure a loan which is equal in value to a specified percentage of the estimated fair value of the pledged collateral. These "note-on-note" transactions are recorded in Note Payable on the Consolidated Balance Sheets and are carried at fair value through the adoption of the fair value option allowed under ASC 825. Financing costs related to the Company's note payable are expensed as incurred and recorded in Interest Expense on the Consolidated Statements of Operations. |
Deferred Charges | Deferred Charges The Company's deferred charges include financing and leasing costs. Financing costs include legal, structuring, and other loan costs incurred by the Company for its financing arrangements. Deferred financing costs related to the Credit Facility (as defined herein) are recorded as a component of Other Assets on the Company’s Consolidated Balance Sheets and are being amortized on a straight-line basis over the term of the Credit Facility, which approximates the effective interest method. Unamortized costs are charged to interest expense upon early repayment or significant modification of the Credit Facility and fully amortized deferred financing costs are removed from the books upon the maturity of the Credit Facility. Deferred financing costs related to the Company’s mortgages payable are recorded as an offset to the related liability and amortized on a straight-line basis over the term of the financing instrument, which approximates the effective interest method. Deferred leasing costs incurred in connection with new leases, which consist primarily of brokerage and legal fees, are recorded as a component of Investments in Real Estate, Net on the Company’s Consolidated Balance Sheets and amortized over the life of the related lease. |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—quoted prices are available in active markets for identical investments as of the measurement date. The Company does not adjust the quoted price for these investments. Level 2—quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date. Level 3—pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed. The Company's investments in real estate-related securities are recorded at fair value based on the closing price of the common stock as reported by the applicable national securities exchange and were classified as Level 1. The Company’s investments in real estate debt, which consists of CMBS, are reported at fair value. The Company generally determines the fair value of its investments in real estate debt by utilizing third-party pricing service providers whenever available and has classified as Level 2. |
Revenue Recognition | Revenue Recognition The Company’s sources of revenue and the related revenue recognition policies are as follows: Rental Revenue — consists primarily of base rent arising from tenant operating leases at the Company’s office, industrial, self-storage, multifamily, retail, healthcare and single-family housing properties. Rental revenue is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. The Company begins to recognize revenue when a tenant takes possession of the leased space. The Company includes its tenant reimbursement income in rental revenue that consists of amounts due from tenants for costs related to common area maintenance, real estate taxes and other recoverable costs as defined in lease agreements. Income from Commercial Mortgage Loans — consists of income from interest earned and recognized as operating income based upon the principal amount outstanding and the contracted interest rate along with origination fees. The accrual of interest income on mortgage loans is discontinued when in management’s opinion, the borrower may be unable to meet payments as they become due (“nonaccrual mortgage loans”), unless the loan is well-secured and is in the process of collection. Interest income on nonaccrual mortgage loans is subsequently recognized only to the extent cash payments are received until the loans are returned to accrual status. As of September 30, 2022, the Company did not have any mortgage loans on nonaccrual status. |
Leases | Leases The Company derives revenue pursuant to lease agreements. At the inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the lease inception, the Company determines whether each lease is a sales-type, direct financing or operating lease. Such classification is based on whether: • The lessee gains control of the underlying asset and the lessor therefore relinquishes control to the lessee under certain criteria (sales-type or direct-financing); or • All other leases that do not meet the criteria as sales-type or direct financing leases (operating). The Company's leases are classified as operating leases in accordance with relevant accounting guidelines, and the related revenue is recognized on a straight-line basis. Upon the termination or vacation of a tenant lease, the associated straight-line rent receivable is written off. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash held in banks, cash on hand and liquid investments with original maturities of three months or less at the time of purchase. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash with high credit-quality institutions to minimize credit risk. |
Restricted Cash | Restricted CashAs of September 30, 2022, the Company had $66.5 million of restricted cash. The restricted cash consisted of $1.1 million of tenant security deposits and $65.4 million of cash received for subscriptions prior to the date in which the subscriptions are effective, which is held in a bank account controlled by the Company’s transfer agent, but in the name of the Company. |
Income Taxes | Income Taxes The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code (“Code”) commencing with its taxable year ending December 31, 2018 and intends to operate in a manner that will allow it to continue to qualify as a REIT. In qualifying for taxation as a REIT, the Company is subject to federal corporate income tax to the extent it distributes less than 100% of its REIT taxable income (including any net capital gains) to its shareholders. A REIT is subject to U.S. federal income tax on undistributed REIT taxable income and net capital gains, and may be subject to 21% corporate income tax and a 4% excise tax. REITs are subject to a number of other organizational and operational requirements. Even in qualifying for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. The Company may elect to treat certain of its corporate subsidiaries as taxable REIT subsidiaries (“TRSs”). In general, a TRS may perform additional services for the Company’s tenants and generally may engage in any real estate or non-real estate-related business other than management or operation of a lodging facility or a health care facility. A domestic TRS is subject to US corporate federal income tax and state income or franchise tax. The Cayman Islands TRSs are not subject to US corporate federal income tax or Cayman Islands taxes. As of September 30, 2022, the Company had five active TRSs: the Company uses two Cayman Islands TRSs to hold its investments in the International Affiliated Funds, uses one Luxembourg TRS to hold minority interests in future European investments, uses one domestic TRS to hold the senior portions of the commercial mortgage loans, and one domestic TRS for self-storage, nonrental-related business. The Company accrues liabilities when it believes that it is more likely than not that it will not realize the benefits of tax positions that it has taken in its tax returns or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with ASC 740-10, Uncertain Tax Positions. Tax legislation commonly referred to as the Tax Cuts & Jobs Act (the “TCJA”) was enacted on December 22, 2017. Among other things, the TCJA reduced the U.S. federal corporate income tax rate from 35% to 21% and created new taxes on certain foreign-sourced earnings. Federal legislation intended to ameliorate the economic impact of the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), was enacted on March 27, 2020, which, among other things, made technical corrections to, or modifies on a temporary basis, certain of the provisions of the TCJA. Management has evaluated the effects of TCJA, as modified by the CARES Act, and concluded that the TCJA will not materially impact its consolidated financial statements. The Company also estimates that the taxes on foreign-sourced earnings imposed under the TCJA are not likely to apply to its foreign investments. |
Organization and Offering Expenses | Organization and Offering Expenses The Advisor advanced organization and offering expenses on behalf of the Company (including legal, accounting, and other expenses attributable to the organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) through the fourth full fiscal quarter after the Company’s acquisition of its first property. The Company agreed to reimburse the Advisor for all such advanced expenses it incurred in 60 equal monthly installments commencing on the earlier of the date the Company’s NAV reaches $1.0 billion or January 31, 2023. The Company's NAV reached $1.0 billion in October 2021 and as of September 30, 2022, had reimbursed the Advisor $0.6 million for such costs. The Advisor and its affiliates have incurred organization and offering expenses on the Company’s behalf for the Initial Public Offering of $4.6 million, consisting of offering costs of $3.5 million and organization costs of $1.1 million, of which $4.0 million and $4.6 million remain outstanding as of September 30, 2022 and December 31, 2021, respectively. These organization and offering costs are recorded as Due to Affiliates on the Company’s Consolidated Balance Sheets. |
Foreign Currency | Foreign Currency The financial position and results of operations of ECF is measured using the local currency (Euro) as the functional currency and are translated into U.S. dollars for purposes of recording the related activity under the equity method of accounting. Net income (loss), which includes the Company’s allocable share of ECF's income and expense, realized gains and losses and unrealized appreciation or depreciation, has been translated at average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of accumulated other comprehensive income (loss), unless there is a sale or complete liquidation of the underlying foreign investments. Foreign currency translation adjustments resulted in other comprehensive losses of approximately $5.4 million and $11.8 million for the three and nine months ended September 30, 2022, respectively. Foreign currency translation adjustments resulted in other comprehensive losses of approximately $0.7 million and $1.6 million for the three and nine months ended September 30, 2021, respectively. The financial position and results of operations of APCF is measured in U.S. dollars for purposes of recording the related activity under the equity method of accounting. There is no direct foreign currency exposure to the Company for its investment in APCF. |
Earnings per Share | Earnings per Share Basic net income (loss) per share of common stock is determined by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. All classes of common stock are allocated net income (loss) at the same rate per share. The Company does not have any dilutive securities outstanding that would cause basic earnings per share and diluted earnings per share to differ. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In July 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-05—Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments (“ASU 2021-05”). The amendments in ASU 2021-05 amend the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if certain criteria are met. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset, and, therefore, does not recognize a selling profit or loss. The amendments are effective for fiscal years beginning after December 15, 2021, for all entities, and interim periods within those fiscal years for public business entities. Management has adopted the guidance and it did not have a material impact to the financial statements. In April 2020, the FASB staff released guidance focused on treatment of concessions related to the effects of COVID-19 on the application of lease modification guidance in Accounting Standards Codification (ASC) 842, “Leases.” The guidance provides a practical expedient to forgo the associated reassessments required by ASC 842 when changes to a lease result in similar or lower future consideration. There were no material exposures to rent concessions or lease defaults for tenants impacted by the COVID-19 pandemic as of September 30, 2022. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life of Assets | The Company’s Investments in Real Estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Description Depreciable Life Building 40 years Building, land and site improvements 15-40 years Furniture, fixtures and equipment 3-7 years Lease intangibles Over lease term |
Fair Value, Assets Measured on Recurring Basis | The following table details the Company’s assets and liabilities measured at fair value on a recurring basis ($ in thousands): September 30, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Investments in real estate-related securities $ 93,335 $ — $ — $ 93,335 $ 93,970 $ — $ — $ 93,970 Investments in real estate debt — 91,296 — 91,296 — 14,183 — 14,183 Investments in commercial mortgage loans — — 391,085 391,085 — — 140,512 140,512 Total $ 93,335 $ 91,296 $ 391,085 $ 575,716 $ 93,970 $ 14,183 $ 140,512 $ 248,665 Liabilities: Loan participations — — 173,135 173,135 — — — — Note payable — — 69,263 69,263 — — — — Total $ — $ — $ 242,398 $ 242,398 $ — $ — $ — $ — |
Investment in Joint Venture at Fair Value | The following table details the Company’s assets and liabilities measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Investments in Commercial Mortgage Loans Loan Participations Note Payable Balance as of December 31, 2021 $ 140,512 $ — $ — Loan Originations 229,095 — — Loan Participations Sold — 157,397 — Additional Fundings 23,937 16,619 — Net Unrealized Loss (2,459) (a) (881) — Financing Proceeds — — 69,263 Balance as of September 30, 2022 $ 391,085 $ 173,135 $ 69,263 |
Disclosure Details of Significant Unobservable Input Used in Measurement of Commercial Mortgage Loans | The following table shows the quantitative information about unobservable inputs related to the Level 3 fair value measurements comprising the investments in commercial mortgage loans, loan participations and note payable as of September 30, 2022. Type Asset Class Valuation Technique Unobservable Inputs Weighted Average Commercial Mortgage Loans Various Cash Equivalency Method Discount Rate LIBOR (1) + 3.49% SOFR (2) + 2.58% Loan Participations Various Cash Equivalency Method Discount Rate LIBOR (1) + 1.75% SOFR (2) + 1.74% Note Payable Various Cash Equivalency Method Discount Rate SOFR (2) + 1.65% (1) LIBOR as of September 30, 2022 was 3.1%. |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of Investments in Real Estate, Net | Investments in Real Estate, Net consisted of the following ($ in thousands): September 30, 2022 December 31, 2021 Building and building improvements $ 1,371,568 $ 778,324 Land and land improvements 283,702 166,944 Furniture, fixtures and equipment 12,530 9,976 Total 1,667,800 955,244 Accumulated depreciation (73,770) (45,412) Investments in real estate, net $ 1,594,030 $ 909,832 |
Schedule of Asset Acquisition | The following table provides details of the properties acquired during the nine months ended September 30, 2022 ($ in thousands): Sectors Purchase Price (1) Number of Transactions Number of Properties Sq. Ft. (in thousands)/Units Medical Office $ 292,017 1 10 344 Sq. Ft Industrial 245,950 4 12 1,989 Sq. Ft. Retail 130,371 1 5 496 Sq. Ft. Self-Storage 35,270 3 3 1,812 Units Single-Family Rentals 50,203 127 127 250 Sq. Ft. $ 753,811 136 157 (1) Purchase price is inclusive of acquisition costs and other acquisition related adjustments. Purchase price does not include any net liabilities assumed. |
Summary of Purchase Price Allocation for Properties Acquired | The following table summarizes the purchase price allocation for the properties acquired during the nine months ended September 30, 2022 ($ in thousands): Amount Building and building improvements $ 581,499 Land and land improvements 116,774 In-place lease intangibles 30,988 Furniture, fixtures and equipment 405 Leasing commissions 16,588 Other intangibles 7,557 Total purchase price $ 753,811 Mortgage notes assumed (62,132) Non-controlling interest (3,347) Net purchase price $ 688,332 |
Investments in Real Estate-Re_2
Investments in Real Estate-Related Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments in Real-Estate Securities | The following table summarizes the Investments in Real Estate-Related Securities as of September 30, 2022 ($ in thousands): Investments in Real Balance as of December 31, 2021 $ 93,970 Additions 79,065 Disposals (44,362) Unrealized losses (39,569) Realized gains 4,231 Balance at September 30, 2022 $ 93,335 |
Summary of Components of Realized and Unrealized Income From Real Estate Related Securities | The following table summarizes the components of Realized and Unrealized Income (Loss) from Real Estate-Related Securities during the three and nine months ended September 30, 2022 and 2021 ($ in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Unrealized (losses) gains $ (11,213) $ (1,421) $ (39,569) $ 5,058 Realized gains (641) 909 4,231 2,474 Dividend income 1,191 514 2,737 1,255 Total $ (10,663) $ 2 $ (32,601) $ 8,787 |
Investments in Real Estate De_2
Investments in Real Estate Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Held-to-maturity | The following tables detail the Company's Investments in Real Estate Debt ($ in thousands): September 30, 2022 Type of Security/Loan Weighted Average Coupon Weighted Average Maturity Date (1, 2) Face Amount Cost Basis Fair Value CMBS - Fixed 3.92 % 3/22/2044 $ 17,409 $ 16,628 $ 15,679 CMBS - Floating 5.00 % 5/31/2036 79,412 77,948 75,617 Total 4.81 % 10/26/2037 $ 96,821 $ 94,576 $ 91,296 December 31, 2021 Type of Security/Loan Weighted Average Coupon Weighted Average Maturity Date (1, 2) Face Amount Cost Basis Fair Value CMBS - Fixed 4.02 % 5/13/2042 $ 3,219 $ 3,300 $ 3,300 CMBS - Floating 2.10 % 1/16/2037 10,976 10,880 10,883 Total 2.54 % 4/02/2038 $ 14,195 $ 14,180 $ 14,183 (1) Weighted by face amount |
Schedule of Collateral Type of Properties Securing the Investments in Real Estate Debt | The following table details the collateral type of the properties securing the Company's investments in real estate debt ($ in thousands): September 30, 2022 December 31, 2021 Collateral Cost Basis Fair Value Percentage based on Fair Value Cost Basis Fair Value Percentage based on Fair Value Industrial $ 28,341 $ 27,332 29.9 % $ 5,163 $ 5,163 36.4 % Multifamily 13,518 13,068 14.4 % — — — % Office 11,445 11,086 12.2 % 2,497 2,496 17.6 % Diversified 10,840 10,256 11.2 % 1,788 1,795 12.6 % Cold Storage 9,418 9,261 10.1 % — — — % Retail 5,250 5,141 5.6 % 1,791 1,792 12.6 % Hotel 4,798 4,674 5.1 % — — — % Net Lease 3,918 3,628 4.0 % 1,513 1,511 10.7 % Manu Housing 3,149 3,145 3.4 % — — — % Self-Storage 2,494 2,351 2.6 % — — — % Life Science 1,405 1,354 1.5 % 1,428 1,426 10.1 % Total $ 94,576 $ 91,296 100.0 % $ 14,180 $ 14,183 100.0 % |
Debt Securities, Held-to-maturity, Credit Quality Indicator | The following table details the credit rating of the Company's investments in real estate debt ($ in thousands): September 30, 2022 December 31, 2021 Credit Rating (1) Cost Basis Fair Value Percentage based on Fair Value Cost Basis Fair Value Percentage based on Fair Value AAA $ 3,528 $ 3,372 3.7 % $ 1,788 $ 1,795 12.6 % AA 8,485 8,397 9.2 % — — — % A 25,859 25,110 27.5 % 996 996 7.0 % BBB 54,006 51,871 56.8 % 11,396 11,392 80.4 % BB 2,163 2,101 2.3 % — — — % B 535 445 0.5 % — — — % Total $ 94,576 $ 91,296 100.0 % $ 14,180 $ 14,183 100.0 % (1) Composite rating at the time of purchase. |
Schedule of Investment in Commercial Mortgage Loan Backed Securities Held to Maturity | The following table summarizes the Investments in Real Estate Debt as of September 30, 2022 ($ in thousands): Investments in Real Estate Debt Balance as of December 31, 2021 $ 14,183 Additions 81,615 Disposals (1,165) Unrealized losses (3,333) Realized losses (4) Balance at September 30, 2022 $ 91,296 |
Investment in International A_2
Investment in International Affiliated Funds (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Schedule of Investments [Abstract] | |
Equity Method Investments | The following table summarizes the equity investment in Unconsolidated International Affiliated Funds from ECF as of September 30, 2022 ($ in thousands): Investment in ECF Balance as of December 31, 2021 $ 79,097 Income distribution (1,068) Income from equity investment in unconsolidated international affiliated fund 6,080 Foreign currency translation adjustment (11,820) Balance at September 30, 2022 $ 72,289 The following table summarizes the equity investment in Unconsolidated International Affiliated Funds from APCF as of September 30, 2022 ($ in thousands): Investment in APCF Balance as of December 31, 2021 $ 51,948 Income distribution (620) Loss from equity investment in unconsolidated international affiliated fund (659) Balance at September 30, 2022 $ 50,669 |
Investments in Commercial Mor_2
Investments in Commercial Mortgage Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Loan Terms | The following is a reconciliation of the beginning and ending balances for the Company’s investment in commercial mortgage loans for the nine months ended September 30, 2022 ($ in thousands): Investment in Commercial Mortgage Loans Balance as of December 31, 2021 $ 140,512 Loan originations 229,095 Additional fundings 23,937 Net unrealized loss (1) (2,459) Balance as of September 30, 2022 $ 391,085 |
Intangibles (Tables)
Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets and Liabilities | The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities consisted of the following ($ in thousands): September 30, 2022 December 31, Intangible assets: In-place lease intangibles $ 85,853 $ 53,031 Above-market lease intangibles 13,030 493 Leasing commissions 38,169 20,559 Other intangibles 16,614 5,666 Total intangible assets 153,666 79,749 Accumulated amortization: In-place lease intangibles (27,840) (16,282) Above-market lease intangibles (392) (77) Leasing commissions (7,658) (5,055) Other intangibles (2,128) (862) Total accumulated amortization (38,018) (22,276) Intangible assets, net $ 115,648 $ 57,473 Intangible liabilities: Below-market lease intangibles $ (42,694) $ (25,841) Accumulated amortization 6,127 3,319 Intangible liabilities, net $ (36,567) $ (22,522) |
Estimated Future Amortization | The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter is as follows ($ in thousands): In-Place Lease Above-Market Lease Intangibles Leasing Commissions Other Below-Market 2022 (remaining) $ 4,988 $ 623 $ 1,371 $ 749 $ (1,297) 2023 11,905 1,901 4,932 2,746 (4,893) 2024 9,552 1,852 4,715 2,471 (4,713) 2025 7,791 1,786 4,175 2,158 (4,305) 2026 5,786 1,727 3,437 1,715 (3,919) Thereafter 17,991 4,749 11,881 4,647 (17,440) $ 58,013 $ 12,638 $ 30,511 $ 14,486 $ (36,567) |
Credit Facility (Tables)
Credit Facility (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following is a summary of the Credit Facility ($ in thousands): Principal Balance Outstanding Indebtedness Interest Rate Maturity Date Maximum Facility Size September 30, 2022 December 31, 2021 Revolving facility L+applicable margin (1) September 30, 2024 $ 235,000 125,000 $ 163,000 DDTL facility L+applicable margin (1) September 30, 2026 100,000 100,000 75,000 Credit facility $ 335,000 $ 225,000 $ 238,000 (1) The weighted-average interest rate for the three and nine months ended September 30, 2022 was 4.0% and 2.9%, respectively. The following table is a summary of the Company's Mortgages Payable secured by the Company’s properties ($ in thousands): Principal Balance Outstanding Indebtedness Lender Interest Rate Maturity Date Maximum Principal Amount September 30, 2022 December 31, 2021 Fixed rate mortgages payable: Main Street at Kingwood Nationwide Life Insurance Company 3.15% 12/01/26 $ 48,000 $ 48,000 $ 48,000 Tacara Steiner Ranch Brighthouse Life Insurance 2.62% 06/01/28 28,750 28,750 28,750 Signature at Hartwell Allstate/American Heritage 3.01% 12/01/28 29,500 29,500 29,500 GFI Grocery Anchored Portfolio Nationwide/Amerant/Synovous 2.98% - 3.40% Various 69,657 69,657 — Total mortgages payable 175,907 106,250 Deferred financing costs, net (744) (636) Discount on assumed mortgage notes (7,525) — Mortgages payable, net $ 167,638 $ 105,614 |
Schedule of Maturities of Long-term Debt | The following table presents future principal payments due under the Credit Facility as of September 30, 2022 ($ in thousands): Year Credit Facility 2022 (remaining) $ — 2023 — 2024 125,000 2025 — 2026 100,000 Thereafter — Total $ 225,000 The following table presents the future principal payments due under the mortgages payable as of September 30, 2022 ($ in thousands): Year Mortgages Payable 2022 (remaining) $ — 2023 — 2024 — 2025 — 2026 53,579 Thereafter 122,328 Total $ 175,907 The following table presents the future principal payments due under the Note Payable as of September 30, 2022 ($ in thousands): Year Note Payable 2022 (remaining) $ — 2023 — 2024 — 2025 69,263 2026 — Thereafter — Total $ 69,263 |
Mortgages Payable (Tables)
Mortgages Payable (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following is a summary of the Credit Facility ($ in thousands): Principal Balance Outstanding Indebtedness Interest Rate Maturity Date Maximum Facility Size September 30, 2022 December 31, 2021 Revolving facility L+applicable margin (1) September 30, 2024 $ 235,000 125,000 $ 163,000 DDTL facility L+applicable margin (1) September 30, 2026 100,000 100,000 75,000 Credit facility $ 335,000 $ 225,000 $ 238,000 (1) The weighted-average interest rate for the three and nine months ended September 30, 2022 was 4.0% and 2.9%, respectively. The following table is a summary of the Company's Mortgages Payable secured by the Company’s properties ($ in thousands): Principal Balance Outstanding Indebtedness Lender Interest Rate Maturity Date Maximum Principal Amount September 30, 2022 December 31, 2021 Fixed rate mortgages payable: Main Street at Kingwood Nationwide Life Insurance Company 3.15% 12/01/26 $ 48,000 $ 48,000 $ 48,000 Tacara Steiner Ranch Brighthouse Life Insurance 2.62% 06/01/28 28,750 28,750 28,750 Signature at Hartwell Allstate/American Heritage 3.01% 12/01/28 29,500 29,500 29,500 GFI Grocery Anchored Portfolio Nationwide/Amerant/Synovous 2.98% - 3.40% Various 69,657 69,657 — Total mortgages payable 175,907 106,250 Deferred financing costs, net (744) (636) Discount on assumed mortgage notes (7,525) — Mortgages payable, net $ 167,638 $ 105,614 |
Schedule of Maturities of Long-term Debt | The following table presents future principal payments due under the Credit Facility as of September 30, 2022 ($ in thousands): Year Credit Facility 2022 (remaining) $ — 2023 — 2024 125,000 2025 — 2026 100,000 Thereafter — Total $ 225,000 The following table presents the future principal payments due under the mortgages payable as of September 30, 2022 ($ in thousands): Year Mortgages Payable 2022 (remaining) $ — 2023 — 2024 — 2025 — 2026 53,579 Thereafter 122,328 Total $ 175,907 The following table presents the future principal payments due under the Note Payable as of September 30, 2022 ($ in thousands): Year Note Payable 2022 (remaining) $ — 2023 — 2024 — 2025 69,263 2026 — Thereafter — Total $ 69,263 |
Note Payable (Tables)
Note Payable (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The following table presents future principal payments due under the Credit Facility as of September 30, 2022 ($ in thousands): Year Credit Facility 2022 (remaining) $ — 2023 — 2024 125,000 2025 — 2026 100,000 Thereafter — Total $ 225,000 The following table presents the future principal payments due under the mortgages payable as of September 30, 2022 ($ in thousands): Year Mortgages Payable 2022 (remaining) $ — 2023 — 2024 — 2025 — 2026 53,579 Thereafter 122,328 Total $ 175,907 The following table presents the future principal payments due under the Note Payable as of September 30, 2022 ($ in thousands): Year Note Payable 2022 (remaining) $ — 2023 — 2024 — 2025 69,263 2026 — Thereafter — Total $ 69,263 |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Components of Other Assets | The following table summarizes the components of Other Assets ($ in thousands): September 30, 2022 December 31, 2021 Straight-line rent receivable $ 8,280 $ 6,451 Receivables 6,361 3,245 Deferred financing costs on credit facility, net 1,302 1,710 Prepaid expenses 2,366 1,154 Other 373 7,985 Total $ 18,682 $ 20,545 |
Summary of Components of Accounts Payable, Accrued Expenses, and Other Liabilities | The following table summarizes the components of Accounts Payable, Accrued Expenses, and Other Liabilities ($ in thousands): September 30, 2022 December 31, 2021 Real estate taxes payable $ 9,971 $ 3,072 Accounts payable and accrued expenses 21,124 5,733 Prepaid rental income 1,760 2,213 Tenant security deposits 6,032 2,010 Accrued interest expense 2,979 462 Other 3,977 1,320 Total $ 45,843 $ 14,810 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Summary of Certain Affiliates Receive Fee and Compensation with Offering and Ongoing Management of Assets | The Advisor will receive fees and compensation, payable monthly in arrears, in connection with the offering and ongoing management of the assets of the Company, as follows: Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Advisory Fee (% of NAV) 1.25% 1.25% 1.25% 1.25% 0.65% |
Summary of Upfront Selling Commissions and Manager Fees and Stockholder Servicing Fees Per Annum on Aggregate Outstanding NAV | The following table presents the upfront selling commissions and dealer manager fees for each class of shares sold in the Offerings, and the stockholder servicing fee per annum based on the aggregate outstanding NAV: Class T Shares Class S Shares Class D Shares Class I Shares Maximum Upfront Selling Commissions (% of Transaction Price) up to 3.0% up to 3.5% up to 1.5% — Maximum Upfront Dealer Manager Fees (% of Transaction Price) up to 0.5% — — — Stockholder Servicing Fee (% of NAV) 0.85% (1) 0.85% 0.25% — (1) Consists of an advisor stockholder servicing fee of 0.65% per annum and a dealer stockholder servicing fee of 0.20% per annum (or other amounts, provided that the sum equals 0.85%), of the aggregate NAV of outstanding Class T shares. |
Schedule of Components of Due to Affiliates | The following table is a summary of the Company’s affiliated service providers and the fees incurred by the Company to those service providers ($ in thousands): Affiliate Service Provided Fees Incurred Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 NexCore Property Management $ 107 $ 64 $ 265 $ 141 Acquisition Services 67 91 67 267 Sparrow Property Management 138 6 293 6 Asset Management 149 2 333 2 The following table summarizes the components of Due to Affiliates ($ in thousands): September 30, December 31, Accrued stockholder servicing fees (1) $ 45,330 $ 25,358 Advanced organization and offering expenses 4,021 4,648 Total $ 49,351 $ 30,006 (1) The Company accrues the full amount of future stockholder servicing fees payable to the Dealer Manager for Class T, Class S and Class D shares up to 8.75% of gross proceeds at the time such shares are sold. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Offerings, which provide, among other things, for the re-allowance of the full amount of the selling commissions and the dealer manager fee and all or a portion of stockholder servicing fees received by the Dealer Manager to such selected dealers. The Company will no longer incur the stockholder servicing fee after September 2056 in connection with those Class T, Class S and Class D shares currently outstanding; the fees may end sooner if the total underwriting compensation paid in respect of the Offering reaches 10.0% of the gross offering proceeds or if the Company completes a liquidity event. The Company will incur stockholder servicing fees in connection with future issuances of Class D shares for a 29.5-year period from the date of issuance and seven years for Class T shares and Class S shares from date of issuance, assuming the maximum up-front selling commissions and dealer manager fees are paid. |
Tenant Leases (Tables)
Tenant Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Future Minimum Rent Expected | Aggregate minimum annual rentals for wholly-owned real estate investments owned by the Company through the non-cancelable lease term, excluding short-term multifamily, self-storage and single family rentals are as follows ($ in thousands): Year September 30, 2022 2022 (remaining) $ 19,008 2023 73,935 2024 72,398 2025 64,658 2026 53,992 Thereafter 174,045 Total $ 458,036 |
Equity and Redeemable Non-con_2
Equity and Redeemable Non-controlling Interest (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Capital Stock | As of September 30, 2022, the Company had authority to issue a total of 2.2 billion shares of capital stock consisting of the following: Classification Number of Shares Par Value Class T Shares 500,000 $ 0.01 Class S Shares 500,000 $ 0.01 Class D Shares 500,000 $ 0.01 Class I Shares 500,000 $ 0.01 Class N Shares 100,000 $ 0.01 Preferred Stock 100,000 $ 0.01 Total 2,200,000 |
Schedule of Common Stock Outstanding Roll Forward | The following tables detail the movement in the Company’s outstanding shares of common stock (in thousands): Three Months Ended September 30, 2022 Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Total June 30, 2022 14,693 38,709 7,442 62,601 29,731 153,176 Common stock issued 1,909 3,954 555 9,750 — 16,168 Distribution reinvestment 89 264 49 502 — 904 Common stock repurchased (65) (141) (45) (357) — (608) September 30, 2022 16,626 42,786 8,001 72,496 29,731 169,640 Nine Months Ended September 30, 2022 Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Total December 31, 2021 9,201 23,809 4,649 31,460 29,731 98,850 Common stock issued 7,298 18,795 3,299 40,716 — 70,108 Distribution reinvestment plan 210 633 118 1,083 — 2,044 Vested stock grant — — — 6 — 6 Common stock repurchased (83) (451) (65) (769) — (1,368) September 30, 2022 16,626 42,786 8,001 72,496 29,731 169,640 |
Summary of Declared Distributions | The following tables detail the aggregate distribution declared for each of the Company's share classes for the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 Class T Common Stock Class S Common Stock Class D Common Stock Class I Common Stock Class N Common Stock Gross distribution per share of common stock $ 0.2190 $ 0.2190 $ 0.2190 $ 0.2190 $ 0.2190 Advisory fee per share of common stock (0.0393) (0.0388) (0.0394) (0.0392) (0.0212) Stockholder servicing fee per share of common stock (0.0282) (0.0280) (0.0093) — — Net distribution per share of common stock $ 0.1515 $ 0.1522 $ 0.1703 $ 0.1798 $ 0.1978 Nine Months Ended September 30, 2022 Class T Common Stock Class S Common Stock Class D Common Stock Class I Common Stock Class N Common Stock Gross distribution per share of common stock $ 0.6433 $ 0.6433 $ 0.6433 $ 0.6433 $ 0.6433 Advisory fee per share of common stock (0.1136) (0.1124) (0.1140) (0.1136) (0.0613) Stockholder servicing fee per share of common stock (0.0831) (0.0824) (0.0254) — — Net distribution per share of common stock $ 0.4466 $ 0.4485 $ 0.5039 $ 0.5297 $ 0.5820 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Total Assets by Segment | The following table sets forth the total assets by segment as of September 30, 2022 and December 31, 2021 ($ in thousands): September 30, December 31, Healthcare $ 477,965 $ 185,953 Industrial 434,796 186,502 Commercial Mortgage Loans 391,085 140,512 Multifamily 293,793 303,852 Retail 220,488 82,791 Single-Family Housing 150,785 100,039 International Affiliated Funds 122,958 131,046 Office 121,978 125,563 Real Estate-Related Securities (1) 184,631 108,153 Self-Storage 35,899 — Other (Corporate) 145,901 133,726 Total assets $ 2,580,279 $ 1,498,137 (1) Includes real estate-related securities and real estate debt as shown on the Company's Consolidated Balance Sheets. |
Summary of Financial Results by Segment | The following table sets forth the financial results by segment for the three and nine months ended September 30, 2022 and 2021 ($ in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Rental revenues Healthcare $ 8,247 $ 3,439 $ 17,592 $ 7,599 Industrial 8,731 3,794 20,961 10,940 Multifamily 6,916 3,810 19,904 8,805 Office 3,375 2,349 9,365 6,014 Retail 1,714 1,962 5,035 5,389 Self-Storage 312 — 348 — Single-family housing 2,132 4 4,372 4 Total rental revenues 31,427 15,358 77,577 38,751 Rental property operating expenses Healthcare 2,401 784 4,844 1,550 Industrial 2,584 1,310 5,710 3,515 Multifamily 2,612 1,649 8,303 4,022 Office 855 592 2,631 1,629 Retail 416 348 1,168 1,025 Self-Storage 185 — 185 — Single-family housing 987 162 2,545 162 Total rental property operating expenses 10,040 4,845 25,386 11,903 Depreciation and amortization (17,357) (6,962) (43,764) (19,200) Income from commercial mortgage loans 5,587 — 9,479 — Realized and unrealized (loss) income from real estate-related securities (10,663) 2 (32,601) 8,787 Realized and unrealized loss from real estate debt (819) — (3,337) — Realized and unrealized gain (loss) on commercial mortgage loans 670 — (1,578) — Income from equity investments in unconsolidated international affiliated funds 436 1,613 5,421 1,928 General and administrative expenses (2,491) (903) (7,112) (2,834) Advisory fee due to affiliate (7,583) (2,502) (18,720) (5,197) Interest income 1,541 45 3,048 155 Interest expense (4,685) (1,127) (9,628) (3,072) Net (loss) income (13,977) 679 (46,601) 7,415 Net loss attributable to non-controlling interests in third party joint ventures (25) — (47) — Net income attributable to preferred stock 3 4 11 15 Net (loss) income attributable to common stockholders $ (13,955) $ 675 $ (46,565) $ 7,400 |
Organization and Business Pur_2
Organization and Business Purpose - Narrative (Details) - USD ($) $ in Billions | Jan. 13, 2021 | Jan. 31, 2018 |
Organization And Business Activities [Line Items] | ||
Common stock, value, authorized | $ 5 | $ 5 |
Primary Offering | ||
Organization And Business Activities [Line Items] | ||
Common stock, value, authorized | 4 | 4 |
Dividend Reinvestment Plan | ||
Organization And Business Activities [Line Items] | ||
Common stock, value, authorized | $ 1 | $ 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) subsidiary | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Significant Of Accounting Policies [Line Items] | |||||
Total assets | $ 2,580,279 | $ 2,580,279 | $ 1,498,137 | ||
Liabilities | 841,998 | 841,998 | 517,053 | ||
Restricted cash | (66,491) | $ (66,491) | (94,413) | ||
Number of active TRSs | subsidiary | 5 | ||||
Due to affiliates | 49,351 | $ 49,351 | 30,006 | ||
Offering costs | 213 | 737 | |||
Foreign currency translation adjustment | (5,386) | $ (709) | $ (11,820) | $ (1,644) | |
Advisor | |||||
Significant Of Accounting Policies [Line Items] | |||||
Period for reimbursement of advance expenses (in months) | 60 months | ||||
Investments in and advances to affiliates, advanced expenses reimbursement NAV threshold | 1,000,000 | $ 1,000,000 | |||
Payment of reimbursement for organization and offering expenses | 600 | ||||
Organizational and offering costs | 4,600 | ||||
Offering costs | 3,500 | ||||
Organization costs | 1,100 | ||||
Due to affiliates | 4,000 | 4,000 | 4,600 | ||
Tenant Deposit Funds | |||||
Significant Of Accounting Policies [Line Items] | |||||
Restricted cash | (1,100) | (1,100) | |||
Common Stock Subscription Funds | |||||
Significant Of Accounting Policies [Line Items] | |||||
Restricted cash | (65,400) | (65,400) | |||
Level 3 | Mortgages Payable | Secured Debt | |||||
Significant Of Accounting Policies [Line Items] | |||||
Long-term debt, fair value | 166,600 | 166,600 | 106,300 | ||
Variable Interest Entity, Primary Beneficiary | |||||
Significant Of Accounting Policies [Line Items] | |||||
Total assets | 228,000 | 228,000 | 53,500 | ||
Liabilities | $ 101,700 | $ 101,700 | $ 29,700 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Assets (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Building | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 40 years |
Building, land and site improvements | Minimum | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 15 years |
Building, land and site improvements | Maximum | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 40 years |
Furniture, fixtures and equipment | Minimum | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 3 years |
Furniture, fixtures and equipment | Maximum | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Assets Measured at Fair Value (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Assets: | |||
Investments in real estate-related securities | $ 93,335 | $ 93,970 | |
Investments in real estate debt | 1,594,030 | 909,832 | |
Investments in commercial mortgage loans | 391,085 | 140,512 | |
Liabilities: | |||
Loan participations | 173,135 | 0 | |
Investments in Commercial Mortgage Loans | |||
Beginning balance | 140,512 | ||
Ending balance | 391,085 | ||
Loan Participations | |||
Beginning balance | 0 | ||
Ending balance | 173,135 | ||
Note Payable | |||
Financing Proceeds | $ 69,263 | $ 0 | |
LIBOR | |||
Note Payable | |||
Loans receivable, basis spread on variable rate | 3.10% | ||
SOFR | |||
Note Payable | |||
Loans receivable, basis spread on variable rate | 3% | ||
Fair Value, Recurring | |||
Assets: | |||
Investments in real estate-related securities | $ 93,335 | 93,970 | |
Investments in real estate debt | 91,296 | 14,183 | |
Investments in commercial mortgage loans | 391,085 | 140,512 | |
Total | 575,716 | 248,665 | |
Liabilities: | |||
Loan participations | 173,135 | 0 | |
Note payable | 69,263 | 0 | |
Total | 242,398 | 0 | |
Investments in Commercial Mortgage Loans | |||
Beginning balance | 140,512 | ||
Loan Originations | 229,095 | ||
Additional Fundings | 23,937 | ||
Net Unrealized Loss | (2,459) | ||
Ending balance | 391,085 | ||
Loan Participations | |||
Beginning balance | 0 | ||
Loan Participations Sold | 157,397 | ||
Additional Fundings | 16,619 | ||
Net Unrealized Loss | (881) | ||
Ending balance | 173,135 | ||
Note Payable | |||
Beginning balance | 0 | ||
Financing Proceeds | 69,263 | ||
Ending balance | 69,263 | ||
Fair Value, Recurring | Level 1 | |||
Assets: | |||
Investments in real estate-related securities | 93,335 | 93,970 | |
Investments in real estate debt | 0 | 0 | |
Investments in commercial mortgage loans | 0 | 0 | |
Total | 93,335 | 93,970 | |
Liabilities: | |||
Loan participations | 0 | 0 | |
Note payable | 0 | 0 | |
Total | 0 | 0 | |
Investments in Commercial Mortgage Loans | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Loan Participations | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Note Payable | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Fair Value, Recurring | Level 2 | |||
Assets: | |||
Investments in real estate-related securities | 0 | 0 | |
Investments in real estate debt | 91,296 | 14,183 | |
Investments in commercial mortgage loans | 0 | 0 | |
Total | 91,296 | 14,183 | |
Liabilities: | |||
Loan participations | 0 | 0 | |
Note payable | 0 | 0 | |
Total | 0 | 0 | |
Investments in Commercial Mortgage Loans | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Loan Participations | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Note Payable | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Fair Value, Recurring | Level 3 | |||
Assets: | |||
Investments in real estate-related securities | 0 | 0 | |
Investments in real estate debt | 0 | 0 | |
Investments in commercial mortgage loans | 391,085 | 140,512 | |
Total | 391,085 | 140,512 | |
Liabilities: | |||
Loan participations | 173,135 | 0 | |
Note payable | 69,263 | 0 | |
Total | 242,398 | $ 0 | |
Investments in Commercial Mortgage Loans | |||
Beginning balance | 140,512 | ||
Ending balance | 391,085 | ||
Loan Participations | |||
Beginning balance | 0 | ||
Ending balance | 173,135 | ||
Note Payable | |||
Beginning balance | 0 | ||
Ending balance | $ 69,263 | ||
Weighted Average | LIBOR | Measurement Input, Discount Rate | |||
Note Payable | |||
Commercial mortgage loans | 0.0349 | ||
Loan Participations | 0.0175 | ||
Weighted Average | SOFR | Measurement Input, Discount Rate | |||
Note Payable | |||
Commercial mortgage loans | 0.0258 | ||
Loan Participations | 0.0174 | ||
Note Payable | 1.65% |
Investments in Real Estate - Sc
Investments in Real Estate - Schedule of Investments in Real Estate, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Real Estate [Abstract] | ||
Building and building improvements | $ 1,371,568 | $ 778,324 |
Land and land improvements | 283,702 | 166,944 |
Furniture, fixtures and equipment | 12,530 | 9,976 |
Total | 1,667,800 | 955,244 |
Accumulated depreciation | (73,770) | (45,412) |
Investments in real estate, net | $ 1,594,030 | $ 909,832 |
Investments in Real Estate - Na
Investments in Real Estate - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) property | Sep. 30, 2021 USD ($) | |
Real Estate Properties [Line Items] | ||||
Depreciation | $ | $ 11.7 | $ 4.7 | $ 28.4 | $ 12.7 |
Number of properties | 157 | |||
Industrial | ||||
Real Estate Properties [Line Items] | ||||
Number of properties | 4 | |||
Self Storage Investments | ||||
Real Estate Properties [Line Items] | ||||
Number of properties | 3 |
Investments in Real Estate - Su
Investments in Real Estate - Summary of Properties Acquired (Details) ft² in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) ft² transaction property | |
Real Estate Properties [Line Items] | |
Purchase Price | $ | $ 753,811 |
Number of Transactions | transaction | 136 |
Number of Properties | property | 157 |
Medical Office | |
Real Estate Properties [Line Items] | |
Purchase Price | $ | $ 292,017 |
Number of Transactions | transaction | 1 |
Number of Properties | property | 10 |
Sq. Ft. /Units | ft² | 344 |
Industrial | |
Real Estate Properties [Line Items] | |
Purchase Price | $ | $ 245,950 |
Number of Transactions | transaction | 4 |
Number of Properties | property | 12 |
Sq. Ft. /Units | ft² | 1,989 |
Retail | |
Real Estate Properties [Line Items] | |
Purchase Price | $ | $ 130,371 |
Number of Transactions | transaction | 1 |
Number of Properties | property | 5 |
Sq. Ft. /Units | ft² | 496 |
Self-Storage | |
Real Estate Properties [Line Items] | |
Purchase Price | $ | $ 35,270 |
Number of Transactions | transaction | 3 |
Number of Properties | property | 3 |
Sq. Ft. /Units | ft² | 1,812 |
Single-Family Rentals | |
Real Estate Properties [Line Items] | |
Purchase Price | $ | $ 50,203 |
Number of Transactions | transaction | 127 |
Number of Properties | property | 127 |
Sq. Ft. /Units | ft² | 250 |
Investments in Real Estate - Pu
Investments in Real Estate - Purchase Price Allocation (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Real Estate [Abstract] | |
Building and building improvements | $ 581,499 |
Land and land improvements | 116,774 |
In-place lease intangibles | 30,988 |
Furniture, fixtures and equipment | 405 |
Leasing commissions | 16,588 |
Other intangibles | 7,557 |
Total purchase price | 753,811 |
Mortgage notes assumed | (62,132) |
Non-controlling interest | (3,347) |
Net purchase price | $ 688,332 |
Investments in Real Estate-Re_3
Investments in Real Estate-Related Securities - Summary of Investments in Real-Estate Securities (Details) - Investments in Real Estate-Related Securities $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Equity Securities At Fair Value [Roll Forward] | |
Balance as of December 31, 2021 | $ 93,970 |
Additions | 79,065 |
Disposals | (44,362) |
Unrealized losses | (39,569) |
Realized gains | 4,231 |
Balance at September 30, 2022 | $ 93,335 |
Investments in Real Estate-Re_4
Investments in Real Estate-Related Securities - Summary of Components of Realized and Unrealized Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized (losses) gains | $ (11,213) | $ (1,421) | $ (39,569) | $ 5,058 |
Realized gains | (641) | 909 | 4,231 | 2,474 |
Dividend income | 1,191 | 514 | 2,737 | 1,255 |
Total | $ (10,663) | $ 2 | $ (32,601) | $ 8,787 |
Investments in Real Estate De_3
Investments in Real Estate Debt - Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Weighted Average Coupon | 4.81% | 2.54% |
Weighted Average Maturity Date | Oct. 26, 2037 | Apr. 02, 2038 |
Face Amount | $ 96,821 | $ 14,195 |
Cost Basis | 94,576 | 14,180 |
Fair Value | $ 91,296 | $ 14,183 |
CMBS - Fixed | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Weighted Average Coupon | 3.92% | 4.02% |
Weighted Average Maturity Date | Mar. 22, 2044 | May 13, 2042 |
Face Amount | $ 17,409 | $ 3,219 |
Cost Basis | 16,628 | 3,300 |
Fair Value | $ 15,679 | $ 3,300 |
CMBS - Floating | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Weighted Average Coupon | 5% | 2.10% |
Weighted Average Maturity Date | May 31, 2036 | Jan. 16, 2037 |
Face Amount | $ 79,412 | $ 10,976 |
Cost Basis | 77,948 | 10,880 |
Fair Value | $ 75,617 | $ 10,883 |
Investments in Real Estate De_4
Investments in Real Estate Debt - Collateral Type of Properties (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 94,576 | $ 14,180 |
Fair Value | $ 91,296 | $ 14,183 |
Percentage based on Fair Value | 100% | 100% |
Fitch, AAA Rating | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 3,528 | $ 1,788 |
Fair Value | $ 3,372 | $ 1,795 |
Percentage based on Fair Value | 3.70% | 12.60% |
Fitch, AA Rating | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 8,485 | $ 0 |
Fair Value | $ 8,397 | $ 0 |
Percentage based on Fair Value | 9.20% | 0% |
Fitch, A Rating | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 25,859 | $ 996 |
Fair Value | $ 25,110 | $ 996 |
Percentage based on Fair Value | 27.50% | 7% |
Fitch, BBB Rating | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 54,006 | $ 11,396 |
Fair Value | $ 51,871 | $ 11,392 |
Percentage based on Fair Value | 56.80% | 80.40% |
Fitch, BB Rating | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 2,163 | $ 0 |
Fair Value | $ 2,101 | $ 0 |
Percentage based on Fair Value | 2.30% | 0% |
Fitch, B Rating | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 535 | $ 0 |
Fair Value | $ 445 | $ 0 |
Percentage based on Fair Value | 0.50% | 0% |
Industrial | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 28,341 | $ 5,163 |
Fair Value | $ 27,332 | $ 5,163 |
Percentage based on Fair Value | 29.90% | 36.40% |
Multifamily | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 13,518 | $ 0 |
Fair Value | $ 13,068 | $ 0 |
Percentage based on Fair Value | 14.40% | 0% |
Office | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 11,445 | $ 2,497 |
Fair Value | $ 11,086 | $ 2,496 |
Percentage based on Fair Value | 12.20% | 17.60% |
Diversified | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 10,840 | $ 1,788 |
Fair Value | $ 10,256 | $ 1,795 |
Percentage based on Fair Value | 10.10% | 12.60% |
Cold Storage | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 9,418 | $ 0 |
Fair Value | $ 9,261 | $ 0 |
Percentage based on Fair Value | 5.60% | 0% |
Retail | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 5,250 | $ 1,791 |
Fair Value | $ 5,141 | $ 1,792 |
Percentage based on Fair Value | 5.10% | 12.60% |
Hotel | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 4,798 | $ 0 |
Fair Value | $ 4,674 | $ 0 |
Percentage based on Fair Value | 4% | 0% |
Net Lease | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 3,918 | $ 1,513 |
Fair Value | $ 3,628 | $ 1,511 |
Percentage based on Fair Value | 3.40% | 10.70% |
Manu Housing | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 3,149 | $ 0 |
Fair Value | $ 3,145 | $ 0 |
Percentage based on Fair Value | 2.60% | 0% |
Self-Storage | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 2,494 | $ 0 |
Fair Value | $ 2,351 | $ 0 |
Percentage based on Fair Value | 1.50% | 0% |
Life Science | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Cost Basis | $ 1,405 | $ 1,428 |
Fair Value | $ 1,354 | $ 1,426 |
Percentage based on Fair Value | 11.20% | 10.10% |
Investments in Real Estate De_5
Investments in Real Estate Debt - Roll Forward (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Investments in Real Estate Debt [Roll Forward] | |
Disposals | $ 1,165 |
Real Estate Related Commercial Mortgage Backed Securities | |
Investments in Real Estate Debt [Roll Forward] | |
Balance as of December 31, 2021 | 14,183 |
Additions | 81,615 |
Unrealized losses | (3,333) |
Realized losses | (4) |
Balance at September 30, 2022 | $ 91,296 |
Investment in International A_3
Investment in International Affiliated Funds - Narrative (Details) $ in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 46 Months Ended | 47 Months Ended | 79 Months Ended | |||
Nov. 30, 2018 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | |
Schedule Of Investments [Line Items] | |||||||||
Income from equity investments in unconsolidated international affiliated funds | $ 436 | $ 1,613 | $ 5,421 | $ 1,928 | |||||
ECF | |||||||||
Schedule Of Investments [Line Items] | |||||||||
Equity method investment, investment commitment amount | $ 28,400 | € 25 | |||||||
Income from equity investments in unconsolidated international affiliated funds | (2,300) | 200 | (6,080) | 400 | |||||
ECF | Subsequent ECF Funding | |||||||||
Schedule Of Investments [Line Items] | |||||||||
Equity method investment, investment commitment amount | $ 51,000 | € 45 | |||||||
APCF | |||||||||
Schedule Of Investments [Line Items] | |||||||||
Equity method investment, investment commitment amount | $ 10,000 | $ 50,000 | |||||||
Income from equity investments in unconsolidated international affiliated funds | $ (1,900) | $ 1,500 | $ (659) | $ 1,500 | |||||
Equity method investment, additional investment commitment amount | $ 20,000 |
Investment in International A_4
Investment in International Affiliated Funds - Summary of Components of Income from Equity Method Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Equity Method Investments [Roll Forward] | ||||
Income distribution | $ (1,688) | $ (797) | ||
Income from equity investments in unconsolidated international affiliated funds | $ (436) | $ (1,613) | (5,421) | (1,928) |
ECF | ||||
Schedule of Equity Method Investments [Roll Forward] | ||||
Beginning balance | 79,097 | |||
Income distribution | (1,068) | |||
Income from equity investments in unconsolidated international affiliated funds | 2,300 | (200) | 6,080 | (400) |
Foreign currency translation adjustment | (11,820) | |||
Ending balance | 72,289 | 72,289 | ||
APCF | ||||
Schedule of Equity Method Investments [Roll Forward] | ||||
Beginning balance | 51,948 | |||
Income distribution | (620) | |||
Income from equity investments in unconsolidated international affiliated funds | 1,900 | $ (1,500) | 659 | $ (1,500) |
Ending balance | $ 50,669 | $ 50,669 |
Investments in Commercial Mor_3
Investments in Commercial Mortgage Loans - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 27, 2022 seniorLoan | Mar. 28, 2022 USD ($) property | Mar. 24, 2022 USD ($) seniorLoan | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jul. 31, 2022 USD ($) property | Nov. 16, 2021 USD ($) | Nov. 09, 2021 USD ($) | |
Investment Holdings [Line Items] | ||||||||
Interest income from investment in commercial mortgage loan | $ 5.6 | $ 9.5 | ||||||
Floating-Rate Senior Mortgage And Mezzanine Loan | ||||||||
Investment Holdings [Line Items] | ||||||||
Property renovations, commitment | $ 9.3 | $ 30.4 | ||||||
Floating-Rate Senior Mortgage And Mezzanine Loan | Mortgages | ||||||||
Investment Holdings [Line Items] | ||||||||
Aggregate principle amount | $ 92.4 | $ 63 | ||||||
LTV ratio | 0.709 | |||||||
In-place debt yield | 0.0525 | |||||||
Floating-Rate Senior Mortgage And Mezzanine Loan | Mortgages | Arizona | ||||||||
Investment Holdings [Line Items] | ||||||||
Number of properties | property | 5 | |||||||
Second Floating Rate Senior Mortgage and Mezzanine Loan | ||||||||
Investment Holdings [Line Items] | ||||||||
Property renovations, commitment | $ 11.1 | |||||||
Second Floating Rate Senior Mortgage and Mezzanine Loan | Mortgages | ||||||||
Investment Holdings [Line Items] | ||||||||
Aggregate principle amount | $ 77.5 | |||||||
Senior Loan Portion Sold | ||||||||
Investment Holdings [Line Items] | ||||||||
Number of loans | seniorLoan | 3 | 3 | ||||||
Financial instruments sold, not yet purchased, corporate debt | $ 157.4 | |||||||
Senior Mezzanine Loans | ||||||||
Investment Holdings [Line Items] | ||||||||
Property renovations, commitment | $ 1 | |||||||
Senior Mezzanine Loans | Mortgages | ||||||||
Investment Holdings [Line Items] | ||||||||
Aggregate principle amount | $ 136.8 | |||||||
Debt Instruments, Number of Loans | property | 2 |
Investments in Commercial Mor_4
Investments in Commercial Mortgage Loans - Summary of Loan Terms (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Commercial Mortgage Loan | |
Financing Receivable, After Allowance For Credit Loss [Roll Forward] | |
Balance as of December 31, 2021 | $ 140,512 |
Loan originations | 229,095 |
Additional fundings | 23,937 |
Net unrealized loss | (2,459) |
Balance as of September 30, 2022 | 391,085 |
Net unrealized loss | 1,600 |
Debt Securities | |
Financing Receivable, After Allowance For Credit Loss [Roll Forward] | |
Net unrealized loss | $ 900 |
Intangibles - Gross Carrying Am
Intangibles - Gross Carrying Amount and Accumulated Amortization of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Intangible assets: | ||
Total intangible assets | $ 153,666 | $ 79,749 |
Accumulated amortization: | ||
Total accumulated amortization | (38,018) | (22,276) |
Intangible assets, net | 115,648 | 57,473 |
Intangible liabilities: | ||
Intangible liabilities, net | (36,567) | (22,522) |
In-place lease intangibles | ||
Intangible assets: | ||
Total intangible assets | 85,853 | 53,031 |
Accumulated amortization: | ||
Total accumulated amortization | (27,840) | (16,282) |
Intangible assets, net | 58,013 | |
Above-market lease intangibles | ||
Intangible assets: | ||
Total intangible assets | 13,030 | 493 |
Accumulated amortization: | ||
Total accumulated amortization | (392) | (77) |
Intangible assets, net | 12,638 | |
Leasing commissions | ||
Intangible assets: | ||
Total intangible assets | 38,169 | 20,559 |
Accumulated amortization: | ||
Total accumulated amortization | (7,658) | (5,055) |
Intangible assets, net | 30,511 | |
Other intangibles | ||
Intangible assets: | ||
Total intangible assets | 16,614 | 5,666 |
Accumulated amortization: | ||
Total accumulated amortization | (2,128) | (862) |
Intangible assets, net | 14,486 | |
Below-market lease intangibles | ||
Intangible liabilities: | ||
Below-market lease intangibles | (42,694) | (25,841) |
Accumulated amortization | 6,127 | 3,319 |
Intangible liabilities, net | $ (36,567) | $ (22,522) |
Intangibles - Narrative (Detail
Intangibles - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Amortization expense relating to intangible assets | $ 6 | $ 4.3 | $ 15.7 | $ 8.5 |
Income from amortization of intangible liabilities | $ 1.1 | $ 0.5 | $ 2.8 | $ 1.4 |
In-place lease intangibles | ||||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Weighted average amortization of useful life | 6 years | |||
Above-market lease intangibles | ||||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Weighted average amortization of useful life | 6 years | |||
Leasing commissions | ||||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Weighted average amortization of useful life | 7 years | |||
Other intangibles | ||||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Weighted average amortization of useful life | 9 years | |||
Below-market lease intangibles | ||||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Weighted average amortization of useful life | 12 years |
Intangibles - Estimated Future
Intangibles - Estimated Future Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
In-place Lease Intangibles and Other Intangibles | ||
Intangible assets, net | $ 115,648 | $ 57,473 |
Below-Market Lease Intangibles | ||
Intangible liabilities, net | (36,567) | (22,522) |
In-place lease intangibles | ||
In-place Lease Intangibles and Other Intangibles | ||
2022 (remaining) | 4,988 | |
2023 | 11,905 | |
2024 | 9,552 | |
2025 | 7,791 | |
2026 | 5,786 | |
Thereafter | 17,991 | |
Intangible assets, net | 58,013 | |
Above-market lease intangibles | ||
In-place Lease Intangibles and Other Intangibles | ||
2022 (remaining) | 623 | |
2023 | 1,901 | |
2024 | 1,852 | |
2025 | 1,786 | |
2026 | 1,727 | |
Thereafter | 4,749 | |
Intangible assets, net | 12,638 | |
Leasing commissions | ||
In-place Lease Intangibles and Other Intangibles | ||
2022 (remaining) | 1,371 | |
2023 | 4,932 | |
2024 | 4,715 | |
2025 | 4,175 | |
2026 | 3,437 | |
Thereafter | 11,881 | |
Intangible assets, net | 30,511 | |
Other intangibles | ||
In-place Lease Intangibles and Other Intangibles | ||
2022 (remaining) | 749 | |
2023 | 2,746 | |
2024 | 2,471 | |
2025 | 2,158 | |
2026 | 1,715 | |
Thereafter | 4,647 | |
Intangible assets, net | 14,486 | |
Below-market lease intangibles | ||
Below-Market Lease Intangibles | ||
2022 (remaining) | (1,297) | |
2023 | (4,893) | |
2024 | (4,713) | |
2025 | (4,305) | |
2026 | (3,919) | |
Thereafter | (17,440) | |
Intangible liabilities, net | $ (36,567) | $ (22,522) |
Credit Facility - Narrative (De
Credit Facility - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 USD ($) property | Oct. 24, 2018 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) property | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) property | Dec. 31, 2021 USD ($) | |
Unsecured Revolving Loans | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 60,000,000 | ||||||
Unsecured Revolving Loans | Minimum | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.30% | ||||||
Unsecured Revolving Loans | Maximum | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.90% | ||||||
Credit Agreement With Accordion Feature | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | ||||||
Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 335,000,000 | $ 335,000,000 | |||||
Credit facility | 225,000,000 | 225,000,000 | $ 238,000,000 | ||||
Line of Credit | September 2021 Amended Credit Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 335,000,000 | $ 335,000,000 | $ 335,000,000 | ||||
Number of term extension options | property | 2 | 2 | 2 | ||||
Extension term | 1 year | ||||||
Extension fee, percentage | 0.125% | ||||||
Outstanding accrued interest | 2,400,000 | 2,400,000 | |||||
Interest expense | 1,800,000 | $ 400,000 | 4,000,000 | $ 1,200,000 | |||
Line of Credit | September 2021 Amended Credit Agreement | Revolving facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 235,000,000 | 235,000,000 | 235,000,000 | 235,000,000 | 235,000,000 | ||
Credit facility | 125,000,000 | 125,000,000 | 163,000,000 | ||||
Line of Credit | September 2021 Amended Credit Agreement | DDTL facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | 100,000,000 | $ 100,000,000 | 100,000,000 | $ 100,000,000 | ||
Number of advances | property | 3 | 3 | 3 | ||||
Minimum amount of advance | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | ||||
Unused fee, percentage | 0.15% | ||||||
Minimum threshold to trigger minimum unused fee, percentage of aggregate commitments | 50% | ||||||
Upfront fee (in basis points) | 0.40% | ||||||
Credit facility | $ 100,000,000 | $ 100,000,000 | $ 75,000,000 | ||||
Line of Credit | September 2021 Amended Credit Agreement | Minimum | DDTL facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused fee, percentage | 0.15% | ||||||
Line of Credit | September 2021 Amended Credit Agreement | Minimum | LIBOR | Revolving facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.30% | ||||||
Line of Credit | September 2021 Amended Credit Agreement | Minimum | LIBOR | DDTL facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
Line of Credit | September 2021 Amended Credit Agreement | Minimum | Base Rate | Revolving facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.30% | ||||||
Line of Credit | September 2021 Amended Credit Agreement | Minimum | Base Rate | DDTL facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
Line of Credit | September 2021 Amended Credit Agreement | Maximum | DDTL facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused fee, percentage | 0.25% | ||||||
Line of Credit | September 2021 Amended Credit Agreement | Maximum | LIBOR | Revolving facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.90% | ||||||
Line of Credit | September 2021 Amended Credit Agreement | Maximum | LIBOR | DDTL facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.85% | ||||||
Line of Credit | September 2021 Amended Credit Agreement | Maximum | Base Rate | Revolving facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.90% | ||||||
Line of Credit | September 2021 Amended Credit Agreement | Maximum | Base Rate | DDTL facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.85% |
Credit Facility - Summary of Cr
Credit Facility - Summary of Credit Facility (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum Facility Size | $ 335,000,000 | $ 335,000,000 | ||
Principal Balance Outstanding | $ 225,000,000 | $ 225,000,000 | $ 238,000,000 | |
September 2021 Amended Credit Agreement | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum Facility Size | $ 335,000,000 | |||
September 2021 Amended Credit Agreement | Revolving facility | ||||
Debt Instrument [Line Items] | ||||
Weighted-average interest rate | 4% | 2.90% | ||
September 2021 Amended Credit Agreement | Revolving facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum Facility Size | $ 235,000,000 | $ 235,000,000 | 235,000,000 | |
Principal Balance Outstanding | 125,000,000 | 125,000,000 | 163,000,000 | |
September 2021 Amended Credit Agreement | DDTL facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum Facility Size | 100,000,000 | 100,000,000 | $ 100,000,000 | |
Principal Balance Outstanding | $ 100,000,000 | $ 100,000,000 | $ 75,000,000 |
Credit Facility - Long-term Deb
Credit Facility - Long-term Debt Maturities (Details) - Line of Credit - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 225,000 | $ 238,000 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
2022 (remaining) | 0 | |
2023 | 0 | |
2024 | 125,000 | |
2025 | 0 | |
2026 | 100,000 | |
Thereafter | 0 | |
Total | $ 225,000 |
Mortgages Payable - Summary of
Mortgages Payable - Summary of Mortgages Payable (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Deferred financing costs, net | $ (2,366,000) | $ (1,154,000) |
Discount on assumed mortgage notes | (7,525,000) | 0 |
Mortgages | ||
Debt Instrument [Line Items] | ||
Deferred financing costs, net | (744,000) | (636,000) |
Total | 167,638,000 | 105,614,000 |
Mortgages Payable | ||
Debt Instrument [Line Items] | ||
Total | 175,907,000 | |
Mortgages Payable | Mortgages | ||
Debt Instrument [Line Items] | ||
Principal Balance Outstanding | $ 175,907,000 | 106,250,000 |
Main Street at Kingwood | Mortgages | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.15% | |
Maximum Principal Amount | $ 48,000,000 | |
Principal Balance Outstanding | $ 48,000,000 | 48,000,000 |
Tacara Steiner Ranch | Mortgages | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.62% | |
Maximum Principal Amount | $ 28,750,000 | |
Principal Balance Outstanding | $ 28,750,000 | 28,750,000 |
Signature at Hartwell | Mortgages | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.01% | |
Maximum Principal Amount | $ 29,500,000 | |
Principal Balance Outstanding | 29,500,000 | 29,500,000 |
GFI Grocery Anchored Portfolio | Mortgages | ||
Debt Instrument [Line Items] | ||
Maximum Principal Amount | 69,657,000 | |
Principal Balance Outstanding | $ 69,657,000 | $ 0 |
GFI Grocery Anchored Portfolio | Mortgages | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.98% | |
GFI Grocery Anchored Portfolio | Mortgages | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.40% |
Mortgages Payable - Narrative (
Mortgages Payable - Narrative (Details) - Mortgages Payable - Mortgages - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Outstanding accrued interest | $ 300 | $ 300 | $ 300 | ||
Mortgages payable | 175,907 | 175,907 | $ 106,250 | ||
Interest expense | $ 800 | $ 600 | $ 2,400 | $ 1,400 |
Mortgages Payable - Long-term D
Mortgages Payable - Long-term Debt Maturities (Details) - Mortgages Payable $ in Thousands | Sep. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |
2022 (remaining) | $ 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 53,579 |
Thereafter | 122,328 |
Total | $ 175,907 |
Note Payable - Narrative (Detai
Note Payable - Narrative (Details) - Tuscon Loan Asset - Notes Payable $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Mortgages payable | $ 69.3 | $ 69.3 |
Outstanding accrued interest | 0.2 | 0.2 |
Interest expense | $ 0.7 | $ 0.8 |
SOFR | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.65% | 1.65% |
Note Payable - Long-term Debt M
Note Payable - Long-term Debt Maturities (Details) - Tuscon Loan Asset $ in Thousands | Sep. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |
2022 (remaining) | $ 0 |
2023 | 0 |
2024 | 0 |
2025 | 69,263 |
2026 | 0 |
Thereafter | 0 |
Total | $ 69,263 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities - Summary of Components of Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Straight-line rent receivable | $ 8,280 | $ 6,451 |
Receivables | 6,361 | 3,245 |
Deferred financing costs on credit facility, net | 1,302 | 1,710 |
Prepaid expenses | 2,366 | 1,154 |
Other | 373 | 7,985 |
Total | $ 18,682 | $ 20,545 |
Other Assets and Other Liabil_4
Other Assets and Other Liabilities - Summary of Components of Accounts Payable, Accrued Expenses, and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Real estate taxes payable | $ 9,971 | $ 3,072 |
Accounts payable and accrued expenses | 21,124 | 5,733 |
Prepaid rental income | 1,760 | 2,213 |
Tenant security deposits | 6,032 | 2,010 |
Accrued interest expense | 2,979 | 462 |
Other | 3,977 | 1,320 |
Total | $ 45,843 | $ 14,810 |
Related Party Transactions - Su
Related Party Transactions - Summary of Certain Affiliates Receive Fee and Compensation with Offering and Ongoing Management of Assets (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Class T Shares | |
Related Party Transaction [Line Items] | |
Advisory Fee (% of NAV) | 1.25% |
Class S Shares | |
Related Party Transaction [Line Items] | |
Advisory Fee (% of NAV) | 1.25% |
Class D Shares | |
Related Party Transaction [Line Items] | |
Advisory Fee (% of NAV) | 1.25% |
Class I Shares | |
Related Party Transaction [Line Items] | |
Advisory Fee (% of NAV) | 1.25% |
Class N Shares | |
Related Party Transaction [Line Items] | |
Advisory Fee (% of NAV) | 0.65% |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) jointVenture | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | |||||
Due to affiliates | $ 49,351 | $ 49,351 | $ 30,006 | ||
Percent of gross proceeds from primary portion of public offering | 10% | ||||
Sparrow | Other Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Single family housing project investments, commitment | 150,000 | $ 150,000 | |||
Class T Shares | |||||
Related Party Transaction [Line Items] | |||||
Percentage of gross proceeds from sale of shares | 8.75% | ||||
Class S Shares | |||||
Related Party Transaction [Line Items] | |||||
Percentage of gross proceeds from sale of shares | 8.75% | ||||
Class D Shares | |||||
Related Party Transaction [Line Items] | |||||
Percentage of gross proceeds from sale of shares | 8.75% | ||||
Class N Shares | TIAA | |||||
Related Party Transaction [Line Items] | |||||
Common stock value under purchase agreement | 300,000 | $ 300,000 | |||
Advisory fees | |||||
Related Party Transaction [Line Items] | |||||
Related party expense | 5,900 | $ 2,000 | 14,500 | $ 4,200 | |
Accrued stockholder servicing fees | |||||
Related Party Transaction [Line Items] | |||||
Related party expense | 1,700 | $ 500 | 4,200 | $ 1,000 | |
Due to affiliates | 45,330 | 45,330 | 25,358 | ||
Accrued stockholder servicing fees | Class T Shares | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliates | 45,300 | 45,300 | |||
Accrued stockholder servicing fees | Class S Shares | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliates | 45,300 | 45,300 | |||
Accrued stockholder servicing fees | Class D Shares | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliates | $ 45,300 | $ 45,300 | |||
Acquisition Fees | NexCore | |||||
Related Party Transaction [Line Items] | |||||
Number of joint venture arrangements | jointVenture | 8 | ||||
Project management fees | Nuveen RE PMS | |||||
Related Party Transaction [Line Items] | |||||
Maximum amount of transaction, percentage of project costs | 6% | 6% | |||
Development and management fees | Nuveen RE PMS | |||||
Related Party Transaction [Line Items] | |||||
Maximum amount of transaction, percentage of project costs | 4% | 4% | |||
Accounts Payable, Accrued Expenses and Other Liabilities | Advisory fees | |||||
Related Party Transaction [Line Items] | |||||
Due to related party | $ 2,100 | $ 2,100 | $ 1,200 | ||
Due to Affiliates | Accrued stockholder servicing fees | |||||
Related Party Transaction [Line Items] | |||||
Due to related party | $ 600 | $ 600 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Affiliated Service Providers and the Fees Incurred (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property management fees | NexCore | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to affiliate | $ 107 | $ 64 | $ 265 | $ 141 |
Property management fees | Sparrow | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to affiliate | 138 | 6 | 293 | 6 |
Acquisition Services Fee | NexCore | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to affiliate | 67 | 91 | 67 | 267 |
Acquisition Services Fee | Sparrow | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to affiliate | $ 149 | $ 2 | $ 333 | $ 2 |
Related Party Transactions - Up
Related Party Transactions - Upfront Selling Commissions and Manager Fees and Stockholder Servicing Fees Per Annum on Aggregate Outstanding NAV (Details) | Sep. 30, 2022 |
Class T Shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 3% |
Maximum Upfront Dealer Manager Fees (% of Transaction Price) | 0.50% |
Stockholder Servicing Fee (% of NAV) | 0.85% |
Class T Shares | Advisor | |
Related Party Transaction [Line Items] | |
Stockholder Servicing Fee (% of NAV) | 0.65% |
Class T Shares | Dealer | |
Related Party Transaction [Line Items] | |
Stockholder Servicing Fee (% of NAV) | 0.20% |
Class S Shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 3.50% |
Stockholder Servicing Fee (% of NAV) | 0.85% |
Class D Shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 1.50% |
Stockholder Servicing Fee (% of NAV) | 0.25% |
Class I Shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 0% |
Maximum Upfront Dealer Manager Fees (% of Transaction Price) | 0% |
Stockholder Servicing Fee (% of NAV) | 0% |
Related Party Transactions - _2
Related Party Transactions - Schedule of Components of Due to Affiliates (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 49,351 | $ 30,006 |
Class T Shares | ||
Related Party Transaction [Line Items] | ||
Percentage of gross proceeds from sale of shares | 8.75% | |
Class S Shares | ||
Related Party Transaction [Line Items] | ||
Percentage of gross proceeds from sale of shares | 8.75% | |
Class D Shares | ||
Related Party Transaction [Line Items] | ||
Percentage of gross proceeds from sale of shares | 8.75% | |
Accrued stockholder servicing fees | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 45,330 | 25,358 |
Threshold percent of gross proceeds | 10% | |
Accrued stockholder servicing fees | Class T Shares | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 45,300 | |
Accrued stockholder servicing fees | Class S Shares | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 45,300 | |
Accrued stockholder servicing fees | Class D Shares | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 45,300 | |
Period from date of issuance for future shares issued | 29 years 6 months | |
Accrued stockholder servicing fees | Class T and S | ||
Related Party Transaction [Line Items] | ||
Period from date of issuance for future shares issued | 7 years | |
Advanced organization and offering expenses | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 4,021 | $ 4,648 |
Tenant Leases - Narrative (Deta
Tenant Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Rental revenue | $ 31,427 | $ 15,358 | $ 77,577 | $ 38,751 |
Tenant Leases - Schedule of Min
Tenant Leases - Schedule of Minimum Rents Expects to Receive for Industrial, Retail and Office Properties, Excluding Tenant Reimbursements of Operating Expenses (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 (remaining) | $ 19,008 |
2023 | 73,935 |
2024 | 72,398 |
2025 | 64,658 |
2026 | 53,992 |
Thereafter | 174,045 |
Total | $ 458,036 |
Equity and Redeemable Non-con_3
Equity and Redeemable Non-controlling Interest - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jul. 01, 2022 | Mar. 31, 2021 | Oct. 08, 2020 | Jan. 04, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Jan. 02, 2019 | |
Equity [Line Items] | ||||||||||
Number of shares, authorized to issue (in shares) | 2,200,000,000 | 2,200,000,000 | ||||||||
Preferred stock preference percentage | 12% | |||||||||
Quarterly distribution payable period | 30 days | |||||||||
Dividends payable | $ 9,769,000 | $ 9,769,000 | $ 5,323,000 | |||||||
Dividends | 27,500,000 | $ 10,000,000 | $ 67,800,000 | $ 24,000,000 | ||||||
Repurchase fulfillment term | 24 months | |||||||||
Common stock repurchased | (7,634,000) | (1,397,000) | $ (17,851,000) | (2,556,000) | ||||||
Allocation to redeemable non-controlling interest | 238,000 | 564,000 | ||||||||
Additional Paid-in Capital | ||||||||||
Equity [Line Items] | ||||||||||
Common stock repurchased | (7,627,000) | $ (1,396,000) | (17,836,000) | $ (2,554,000) | ||||||
Allocation to redeemable non-controlling interest | $ 238,000 | $ 564,000 | ||||||||
Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.2190 | $ 0.6433 | ||||||||
Non-employee Directors | ||||||||||
Equity [Line Items] | ||||||||||
Annual retainer | $ 100,000 | $ 75,000 | ||||||||
Percent of annual compensation paid in share-based payment | 50% | 25% | ||||||||
Audit Committee Chairperson | ||||||||||
Equity [Line Items] | ||||||||||
Annual retainer | $ 20,000 | $ 15,000 | ||||||||
Percent of annual compensation paid in cash | 50% | 75% | ||||||||
Lead Independent Director | ||||||||||
Equity [Line Items] | ||||||||||
Annual retainer | $ 5,000 | |||||||||
TIAA | ||||||||||
Equity [Line Items] | ||||||||||
Restricted stock, vesting period | 1 year | |||||||||
Percentage of shares to be repurchased at transaction price | 95% | |||||||||
Class T Shares | ||||||||||
Equity [Line Items] | ||||||||||
Common stock issued (in shares) | 16,626,244 | 16,626,244 | 9,201,452 | |||||||
Common stock outstanding (in shares) | 16,626,244 | 16,626,244 | 9,201,452 | |||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1515 | $ 0.4466 | ||||||||
Class T Shares | Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.2190 | $ 0.6433 | ||||||||
Class S Shares | ||||||||||
Equity [Line Items] | ||||||||||
Common stock issued (in shares) | 42,786,403 | 42,786,403 | 23,809,171 | |||||||
Common stock outstanding (in shares) | 42,786,403 | 42,786,403 | 23,809,171 | |||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1522 | $ 0.4485 | ||||||||
Class S Shares | Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.2190 | $ 0.6433 | ||||||||
Class D Shares | ||||||||||
Equity [Line Items] | ||||||||||
Common stock issued (in shares) | 8,000,887 | 8,000,887 | 4,648,665 | |||||||
Common stock outstanding (in shares) | 8,000,887 | 8,000,887 | 4,648,665 | |||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1703 | $ 0.5039 | ||||||||
Class D Shares | Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.2190 | $ 0.6433 | ||||||||
Class I Shares | ||||||||||
Equity [Line Items] | ||||||||||
Common stock issued (in shares) | 72,496,315 | 72,496,315 | 31,460,729 | |||||||
Common stock outstanding (in shares) | 72,496,315 | 72,496,315 | 31,460,729 | |||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1798 | $ 0.5297 | ||||||||
Class I Shares | Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.2190 | $ 0.6433 | ||||||||
Class N Shares | ||||||||||
Equity [Line Items] | ||||||||||
Common stock issued (in shares) | 29,730,608 | 29,730,608 | 29,730,608 | |||||||
Common stock outstanding (in shares) | 29,730,608 | 29,730,608 | 29,730,608 | |||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1978 | $ 0.5820 | ||||||||
Class N Shares | Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.2190 | $ 0.6433 | ||||||||
Class N Shares | TIAA | ||||||||||
Equity [Line Items] | ||||||||||
Common stock value under purchase agreement | $ 300,000,000 | $ 300,000,000 | ||||||||
Initial investment threshold | $ 200,000 | $ 200,000 | ||||||||
Class N Shares | TIAA | Minimum | ||||||||||
Equity [Line Items] | ||||||||||
Percentage of repurchase plan limits per month | 0.67% | |||||||||
Class N Shares | TIAA | Maximum | ||||||||||
Equity [Line Items] | ||||||||||
Percentage of repurchase plan limits per quarter | 1.67% | |||||||||
Class D and Class S and Class T and Class I | TIAA | Maximum | ||||||||||
Equity [Line Items] | ||||||||||
Percentage of repurchase plan limits per month | 2% | |||||||||
Percentage of repurchase plan limits per quarter | 5% | |||||||||
Private Placement | Additional Paid-in Capital | ||||||||||
Equity [Line Items] | ||||||||||
Allocation to redeemable non-controlling interest | $ 800,000 | $ 300,000 | ||||||||
Private Placement | Series A Preferred Stock | ||||||||||
Equity [Line Items] | ||||||||||
Sale of stock (in shares) | 125 | 125 | ||||||||
Sale of stock (in dollars per share) | $ 1,000 | |||||||||
Shares redeemed (in shares) | 125 |
Equity and Redeemable Non-con_4
Equity and Redeemable Non-controlling Interest - Summary of Capital Stock Issuable (Details) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Preferred stock authorized (in shares) | 100,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Number of shares, authorized to issue (in shares) | 2,200,000,000 | |
Class T Shares | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class S Shares | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class D Shares | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class I Shares | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class N Shares | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Equity and Redeemable Non-con_5
Equity and Redeemable Non-controlling Interest - Summary of Sales of Common Stock (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 153,176 | 98,850 |
Common stock issued (in shares) | 16,168 | 70,108 |
Distribution reinvestment plan (in shares) | 904 | 2,044 |
Vested stock grant (in shares) | 6 | |
Common stock repurchased (in shares) | (608) | (1,368) |
Ending balance (in shares) | 169,640 | 169,640 |
Class T Shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 14,693 | 9,201 |
Common stock issued (in shares) | 1,909 | 7,298 |
Distribution reinvestment plan (in shares) | 89 | 210 |
Vested stock grant (in shares) | 0 | |
Common stock repurchased (in shares) | (65) | (83) |
Ending balance (in shares) | 16,626 | 16,626 |
Class S Shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 38,709 | 23,809 |
Common stock issued (in shares) | 3,954 | 18,795 |
Distribution reinvestment plan (in shares) | 264 | 633 |
Vested stock grant (in shares) | 0 | |
Common stock repurchased (in shares) | (141) | (451) |
Ending balance (in shares) | 42,786 | 42,786 |
Class D Shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 7,442 | 4,649 |
Common stock issued (in shares) | 555 | 3,299 |
Distribution reinvestment plan (in shares) | 49 | 118 |
Vested stock grant (in shares) | 0 | |
Common stock repurchased (in shares) | (45) | (65) |
Ending balance (in shares) | 8,001 | 8,001 |
Class I Shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 62,601 | 31,460 |
Common stock issued (in shares) | 9,750 | 40,716 |
Distribution reinvestment plan (in shares) | 502 | 1,083 |
Vested stock grant (in shares) | 6 | |
Common stock repurchased (in shares) | (357) | (769) |
Ending balance (in shares) | 72,496 | 72,496 |
Class N Shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 29,731 | 29,731 |
Common stock issued (in shares) | 0 | 0 |
Distribution reinvestment plan (in shares) | 0 | 0 |
Vested stock grant (in shares) | 0 | |
Common stock repurchased (in shares) | 0 | 0 |
Ending balance (in shares) | 29,731 | 29,731 |
Equity and Redeemable Non-con_6
Equity and Redeemable Non-controlling Interest - Summary of Declared Distributions (Details) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | $ 0.2190 | $ 0.6433 |
Class T Shares | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1515 | 0.4466 |
Class T Shares | Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.2190 | 0.6433 |
Class T Shares | Advisory fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0393 | 0.1136 |
Class T Shares | Stockholder servicing fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0282 | 0.0831 |
Class S Shares | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1522 | 0.4485 |
Class S Shares | Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.2190 | 0.6433 |
Class S Shares | Advisory fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0388 | 0.1124 |
Class S Shares | Stockholder servicing fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0280 | 0.0824 |
Class D Shares | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1703 | 0.5039 |
Class D Shares | Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.2190 | 0.6433 |
Class D Shares | Advisory fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0394 | 0.1140 |
Class D Shares | Stockholder servicing fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0093 | 0.0254 |
Class I Shares | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1798 | 0.5297 |
Class I Shares | Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.2190 | 0.6433 |
Class I Shares | Advisory fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0392 | 0.1136 |
Class I Shares | Stockholder servicing fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0 | 0 |
Class N Shares | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1978 | 0.5820 |
Class N Shares | Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.2190 | 0.6433 |
Class N Shares | Advisory fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0212 | 0.0613 |
Class N Shares | Stockholder servicing fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | $ 0 | $ 0 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 11 |
Segment Reporting - Summary of
Segment Reporting - Summary of Total Assets by Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,580,279 | $ 1,498,137 |
Healthcare | ||
Segment Reporting Information [Line Items] | ||
Total assets | 477,965 | 185,953 |
Commercial Mortgage Loans | ||
Segment Reporting Information [Line Items] | ||
Total assets | 391,085 | 140,512 |
Multifamily | ||
Segment Reporting Information [Line Items] | ||
Total assets | 293,793 | 303,852 |
Retail | ||
Segment Reporting Information [Line Items] | ||
Total assets | 220,488 | 82,791 |
Single-Family Housing | ||
Segment Reporting Information [Line Items] | ||
Total assets | 150,785 | 100,039 |
International Affiliated Funds | ||
Segment Reporting Information [Line Items] | ||
Total assets | 122,958 | 131,046 |
Office | ||
Segment Reporting Information [Line Items] | ||
Total assets | 121,978 | 125,563 |
Real Estate-Related Securities(1) | ||
Segment Reporting Information [Line Items] | ||
Total assets | 184,631 | 108,153 |
Self-Storage | ||
Segment Reporting Information [Line Items] | ||
Total assets | 35,899 | 0 |
Other (Corporate) | ||
Segment Reporting Information [Line Items] | ||
Total assets | 145,901 | 133,726 |
Industrial | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 434,796 | $ 186,502 |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Financial Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Rental revenue | $ 31,427 | $ 15,358 | $ 77,577 | $ 38,751 |
Expenses: | ||||
Rental property operating expenses | 10,040 | 4,845 | 25,386 | 11,903 |
Depreciation and amortization | (17,357) | (6,962) | (43,764) | (19,200) |
Income from commercial mortgage loans | 5,587 | 0 | 9,479 | 0 |
Realized and unrealized (loss) income from real estate-related securities | (10,663) | 2 | (32,601) | 8,787 |
Realized and unrealized loss from real estate debt | (819) | 0 | (3,337) | 0 |
Realized and unrealized gain (loss) on commercial mortgage loans | 670 | 0 | (1,578) | 0 |
Income from equity investments in unconsolidated international affiliated funds | 436 | 1,613 | 5,421 | 1,928 |
General and administrative expenses | (2,491) | (903) | (7,112) | (2,834) |
Advisory fee due to affiliate | (7,583) | (2,502) | (18,720) | (5,197) |
Interest income | 1,541 | 45 | 3,048 | 155 |
Interest expense | (4,685) | (1,127) | (9,628) | (3,072) |
Net (loss) income | (13,977) | 679 | (46,601) | 7,415 |
Net loss attributable to non-controlling interests in third party joint ventures | (25) | 0 | (47) | 0 |
Net income attributable to preferred stock | 3 | 4 | 11 | 15 |
Net (loss) income attributable to common stockholders | (13,955) | 675 | (46,565) | 7,400 |
Retail | ||||
Revenues | ||||
Rental revenue | 1,714 | 1,962 | 5,035 | 5,389 |
Expenses: | ||||
Rental property operating expenses | 416 | 348 | 1,168 | 1,025 |
Industrial | ||||
Revenues | ||||
Rental revenue | 8,731 | 3,794 | 20,961 | 10,940 |
Expenses: | ||||
Rental property operating expenses | 2,584 | 1,310 | 5,710 | 3,515 |
Multifamily | ||||
Revenues | ||||
Rental revenue | 6,916 | 3,810 | 19,904 | 8,805 |
Expenses: | ||||
Rental property operating expenses | 2,612 | 1,649 | 8,303 | 4,022 |
Office | ||||
Revenues | ||||
Rental revenue | 3,375 | 2,349 | 9,365 | 6,014 |
Expenses: | ||||
Rental property operating expenses | 855 | 592 | 2,631 | 1,629 |
Healthcare | ||||
Revenues | ||||
Rental revenue | 8,247 | 3,439 | 17,592 | 7,599 |
Expenses: | ||||
Rental property operating expenses | 2,401 | 784 | 4,844 | 1,550 |
Self-Storage | ||||
Revenues | ||||
Rental revenue | 312 | 0 | 348 | 0 |
Expenses: | ||||
Rental property operating expenses | 185 | 0 | 185 | 0 |
Single-Family Housing | ||||
Revenues | ||||
Rental revenue | 2,132 | 4 | 4,372 | 4 |
Expenses: | ||||
Rental property operating expenses | $ 987 | $ 162 | $ 2,545 | $ 162 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | Nov. 09, 2022 | Oct. 26, 2022 USD ($) | Oct. 25, 2022 USD ($) property |
Subsequent Event [Line Items] | |||
Acquired buildings | $ | $ 135 | ||
Proceeds from sale of loans held-for-investment | $ | $ 50.8 | ||
Renewal of advisory agreement term | 1 year | ||
Light Industrial Buildings | |||
Subsequent Event [Line Items] | |||
Number of properties acquired | property | 6 | ||
Bulk Industrial Building | |||
Subsequent Event [Line Items] | |||
Number of properties acquired | property | 1 |