Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2021 | |
Cover [Abstract] | |
Document Type | S-11 |
Amendment Flag | false |
Entity Registrant Name | Starwood Real Estate Income Trust, Inc. |
Entity Central Index Key | 0001711929 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | ||||
Investments in real estate, net | $ 8,838,784 | $ 4,597,054 | $ 1,798,044 | |
Investments in real estate debt | 964,075 | 218,225 | 277,651 | |
Investments in unconsolidated real estate ventures | 10,401 | 10,991 | 12,169 | |
Cash and cash equivalents | 671,683 | 128,650 | 48,479 | |
Restricted cash | 562,627 | 164,761 | 140,482 | |
Other assets | 776,041 | 211,135 | 113,497 | |
Total assets | 11,823,611 | 5,330,816 | 2,390,322 | |
Liabilities and Equity | ||||
Mortgage notes and revolving credit facility, net | [1] | 5,747,138 | 3,278,762 | 1,238,102 |
Secured financings on investments in real estate debt | 134,835 | 108,254 | 81,035 | |
Unsecured revolving credit facility | 0 | 0 | ||
Other liabilities | 230,208 | 117,072 | ||
Accounts payable, accrued expenses and other liabilities | 230,208 | 117,072 | 47,979 | |
Subscriptions received in advance | 476,520 | 113,532 | 110,618 | |
Due to affiliates | 351,839 | 96,371 | 63,341 | |
Total liabilities | 6,940,540 | 3,713,991 | 1,541,075 | |
Commitments and contingencies | ||||
Redeemable non-controlling interest | 28,696 | 10,409 | 0 | |
Equity | ||||
Preferred stock | ||||
Additional paid-in capital | 5,378,498 | 1,819,526 | 883,506 | |
Accumulated deficit and cumulative distributions | (539,203) | (224,198) | (46,697) | |
Total stockholders' equity | 4,841,887 | 1,596,237 | 837,263 | |
Non-controlling interests in consolidated joint ventures | 12,488 | 10,179 | 11,984 | |
Total equity | 4,854,375 | 1,606,416 | 849,247 | |
Total liabilities and equity | 11,823,611 | 5,330,816 | 2,390,322 | |
Common Stock Class T | ||||
Equity | ||||
Common stock value | 40 | 25 | 14 | |
Common Stock Class S | ||||
Equity | ||||
Common stock value | 1,216 | 464 | 262 | |
Common Stock Class D | ||||
Equity | ||||
Common stock value | 188 | 28 | 17 | |
Common Stock Class I | ||||
Equity | ||||
Common stock value | $ 1,148 | $ 392 | $ 161 | |
[1] | The majority of the Company’s mortgages contain yield or spread maintenance provisions. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 100,000,000 | 100,000,000 | 100,000,000 |
Preferred stock, issued | 0 | 0 | 0 |
Preferred stock, outstanding | 0 | 0 | 0 |
Common stock, shares outstanding | 259,303,512 | 90,894,853 | 45,344,735 |
Common Stock Class T | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 | 250,000,000 |
Common stock, shares issued | 4,009,638 | 2,463,182 | 1,412,563 |
Common stock, shares outstanding | 4,009,638 | 2,463,182 | 1,412,563 |
Common Stock Class T | Previously Reported [Member] | |||
Common stock, shares authorized | 250,000,000 | ||
Common Stock Class S | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 250,000,000 |
Common stock, shares issued | 121,643,389 | 46,431,661 | 26,164,794 |
Common stock, shares outstanding | 121,643,389 | 46,431,661 | 26,164,794 |
Common Stock Class S | Previously Reported [Member] | |||
Common stock, shares authorized | 250,000,000 | ||
Common Stock Class D | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 | 250,000,000 |
Common stock, shares issued | 18,843,158 | 2,847,097 | 1,653,094 |
Common stock, shares outstanding | 18,843,158 | 2,847,097 | 1,653,094 |
Common Stock Class D | Previously Reported [Member] | |||
Common stock, shares authorized | 250,000,000 | ||
Common Stock Class I | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 250,000,000 |
Common stock, shares issued | 114,807,327 | 39,152,913 | 16,114,284 |
Common stock, shares outstanding | 114,807,327 | 39,152,913 | 16,114,284 |
Common Stock Class I | Previously Reported [Member] | |||
Common stock, shares authorized | 250,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||||||
Total revenues | $ 162,435 | $ 76,920 | $ 393,760 | $ 205,422 | $ 298,423 | $ 94,308 | |
Expenses | |||||||
Operating expenses | 64,767 | 29,504 | 154,923 | 77,167 | 113,184 | 41,970 | |
General and administrative | 6,588 | 2,023 | 15,210 | 6,163 | 8,624 | 4,523 | $ 1,745 |
Management fees | 17,653 | 5,018 | 36,364 | 13,560 | 19,423 | 5,469 | |
Performance participation allocation | 79,552 | 0 | 111,934 | 46 | 15,061 | 10,366 | |
Depreciation and amortization | 82,453 | 38,543 | 197,934 | 107,993 | 155,864 | 38,896 | |
Total expenses | 251,013 | 75,088 | 516,365 | 204,929 | 312,156 | 101,224 | 1,745 |
Other income (expense) | |||||||
Loss from unconsolidated real estate ventures | (447) | (666) | (448) | (887) | (1,462) | 175 | |
Income (loss) from investments in real estate debt | 19,268 | 11,068 | 37,898 | (27) | 7,206 | 10,158 | |
Interest expense | (38,887) | (22,539) | (88,994) | (65,448) | (88,918) | (25,311) | |
Other expense, net | (1,449) | (192) | (527) | (29) | (1,293) | 916 | 52 |
Total other expense | (21,515) | (12,329) | (52,071) | (66,391) | (84,467) | (14,062) | 52 |
Net loss | (110,093) | (10,497) | (174,676) | (65,898) | (98,200) | (20,978) | (1,693) |
Net loss attributable to non-controlling interests in consolidated joint ventures | 176 | 139 | 319 | 1,186 | 1,300 | 152 | |
Net loss attributable to non-controlling interests in Operating Partnership | 665 | 43 | 1,235 | 458 | 642 | ||
Net loss attributable to stockholders | $ (109,252) | $ (10,315) | $ (173,122) | $ (64,254) | $ (96,258) | $ (20,826) | $ (1,693) |
Net loss per share of common stock, basic and diluted | $ (0.47) | $ (0.14) | $ (1.04) | $ (0.96) | $ (1.35) | $ (0.91) | $ (6.59) |
Weighted-average shares of common stock outstanding, basic and diluted | 231,623,633 | 74,215,048 | 166,052,567 | 66,696,838 | 71,502,374 | 23,032,351 | 256,787 |
Rental revenue | |||||||
Revenues | |||||||
Total revenues | $ 152,207 | $ 71,896 | $ 366,550 | $ 186,688 | $ 273,847 | $ 51,790 | |
Hotel revenue | |||||||
Revenues | |||||||
Total revenues | 9,364 | 4,420 | 24,817 | 17,134 | 22,200 | 40,559 | |
Other revenue | |||||||
Revenues | |||||||
Total revenues | 864 | 604 | 2,393 | 1,600 | 2,376 | 1,959 | |
Rental property operating | |||||||
Expenses | |||||||
Operating expenses | 59,114 | 25,915 | 139,897 | 64,873 | 96,942 | 18,463 | |
Hotel operating | |||||||
Expenses | |||||||
Operating expenses | $ 5,653 | $ 3,589 | $ 15,026 | $ 12,294 | $ 16,242 | $ 23,507 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common StockCommon Stock Class T | Common StockCommon Stock Class S | Common StockCommon Stock Class D | Common StockCommon Stock Class I | Additional Paid-In Capital | Accumulated Deficit and Cumulative Distributions | Non-Controlling Interests |
Beginning Balance at Dec. 31, 2017 | $ 164 | $ 164 | $ 0 | $ 0 | $ 0 | $ 0 | $ 200 | $ (36) | $ 0 |
Common stock issued | 164,674 | 164,674 | 66 | 15 | 164,593 | ||||
Offering costs | (16,103) | (16,103) | (16,103) | ||||||
Amortization of restricted stock grants | 80 | 80 | 80 | ||||||
Net loss | (1,693) | (1,693) | (1,693) | ||||||
Ending Balance at Dec. 31, 2018 | 147,122 | 147,122 | 0 | 66 | 0 | 15 | 148,770 | (1,729) | 0 |
Common stock issued | 766,173 | 766,173 | 14 | 192 | 17 | 145 | 765,805 | ||
Offering costs | (42,156) | (42,156) | (42,156) | ||||||
Distribution reinvestments | 11,227 | 11,227 | 4 | 1 | 11,222 | ||||
Amortization of restricted stock grants | 71 | 71 | 71 | ||||||
Common stock repurchased | (206) | (206) | (206) | ||||||
Net loss | (20,978) | (20,826) | (20,826) | (152) | |||||
Contributions from non-controlling interests | 12,520 | 12,520 | |||||||
Distributions to non-controlling interests | (384) | (384) | |||||||
Distributions declared on common stock (see Note 10) | (24,142) | (24,142) | (24,142) | ||||||
Ending Balance at Dec. 31, 2019 | 849,247 | 837,263 | 14 | 262 | 17 | 161 | 883,506 | (46,697) | 11,984 |
Common stock issued | 421,659 | 421,659 | 6 | 94 | 6 | 89 | 421,464 | ||
Offering costs | (20,528) | (20,528) | (20,528) | ||||||
Distribution reinvestments | 8,364 | 8,364 | 2 | 1 | 8,361 | ||||
Amortization of restricted stock grants | 21 | 21 | 21 | ||||||
Common stock repurchased | (980) | (980) | (980) | ||||||
Net loss | (40,647) | ||||||||
Net loss (allocated to redeemable non- controlling interest) | (40,315) | (39,677) | (39,677) | (638) | |||||
Contributions from non-controlling interests | 58,840 | 58,840 | |||||||
Distributions to non-controlling interests | (356) | (356) | |||||||
Distributions declared on common stock (see Note 10) | (16,368) | (16,368) | (16,368) | ||||||
Allocation to redeemable non-controlling interest | (302) | (302) | (302) | ||||||
Ending Balance at Mar. 31, 2020 | 1,259,282 | 1,189,452 | 20 | 358 | 23 | 251 | 1,291,542 | (102,742) | 69,830 |
Beginning Balance at Dec. 31, 2019 | 849,247 | 837,263 | 14 | 262 | 17 | 161 | 883,506 | (46,697) | 11,984 |
Net loss | (65,898) | ||||||||
Allocation to redeemable non-controlling interest | (792) | ||||||||
Ending Balance at Sep. 30, 2020 | 1,376,695 | 1,366,098 | 23 | 409 | 25 | 313 | 1,533,049 | (167,721) | 10,597 |
Beginning Balance at Dec. 31, 2019 | 849,247 | 837,263 | 14 | 262 | 17 | 161 | 883,506 | (46,697) | 11,984 |
Common stock issued | 982,179 | 982,179 | 12 | 201 | 11 | 233 | 981,722 | ||
Offering costs | (42,390) | (42,390) | (42,390) | ||||||
Distribution reinvestments | 41,551 | 41,551 | 11 | 6 | 41,534 | ||||
Amortization of restricted stock grants | 128 | 128 | 128 | ||||||
Common stock repurchased | (43,711) | (43,711) | (1) | (10) | (8) | (43,692) | |||
Net loss | (98,200) | ||||||||
Net loss (allocated to redeemable non- controlling interest) | (97,558) | (96,258) | (96,258) | (1,300) | |||||
Contributions from non-controlling interests | 60,192 | 60,192 | |||||||
Distributions to non-controlling interests | (1,860) | (1,860) | |||||||
Repurchase of non-controlling interests | (58,837) | (58,837) | |||||||
Distributions declared on common stock (see Note 10) | (81,243) | (81,243) | (81,243) | ||||||
Allocation to redeemable non-controlling interest | (1,282) | (1,282) | (1,282) | ||||||
Ending Balance at Dec. 31, 2020 | 1,606,416 | 1,596,237 | 25 | 464 | 28 | 392 | 1,819,526 | (224,198) | 10,179 |
Beginning Balance at Mar. 31, 2020 | 1,259,282 | 1,189,452 | 20 | 358 | 23 | 251 | 1,291,542 | (102,742) | 69,830 |
Common stock issued | 95,244 | 95,244 | 2 | 23 | 1 | 17 | 95,201 | ||
Offering costs | (5,369) | (5,369) | (5,369) | ||||||
Distribution reinvestments | 10,463 | 10,463 | 3 | 2 | 10,458 | ||||
Amortization of restricted stock grants | 21 | 21 | 21 | ||||||
Common stock repurchased | (21,374) | (21,374) | (1) | (5) | (3) | (21,365) | |||
Net loss | (14,754) | ||||||||
Net loss (allocated to redeemable non- controlling interest) | (14,671) | (14,262) | (14,262) | (409) | |||||
Contributions from non-controlling interests | 1,352 | 1,352 | |||||||
Distributions to non-controlling interests | (831) | (831) | |||||||
Repurchase of non-controlling interests | (58,837) | (58,837) | |||||||
Distributions declared on common stock (see Note 10) | (19,300) | (19,300) | (19,300) | ||||||
Allocation to redeemable non-controlling interest | (274) | (274) | (274) | ||||||
Ending Balance at Jun. 30, 2020 | 1,245,706 | 1,234,601 | 21 | 379 | 24 | 267 | 1,370,214 | (136,304) | 11,105 |
Common stock issued | 163,399 | 163,399 | 2 | 29 | 1 | 46 | 163,321 | ||
Offering costs | (4,689) | (4,689) | (4,689) | ||||||
Distribution reinvestments | 10,487 | 10,487 | 3 | 1 | 10,483 | ||||
Amortization of restricted stock grants | 38 | 38 | 38 | ||||||
Common stock repurchased | (6,108) | (6,108) | (2) | (1) | (6,105) | ||||
Net loss | (10,497) | ||||||||
Net loss (allocated to redeemable non- controlling interest) | (10,455) | (10,316) | (10,316) | (139) | |||||
Distributions to non-controlling interests | (369) | (369) | |||||||
Distributions declared on common stock (see Note 10) | (21,101) | (21,101) | (21,101) | ||||||
Allocation to redeemable non-controlling interest | (213) | (213) | (213) | ||||||
Ending Balance at Sep. 30, 2020 | 1,376,695 | 1,366,098 | 23 | 409 | 25 | 313 | 1,533,049 | (167,721) | 10,597 |
Net loss | (32,302) | ||||||||
Ending Balance at Dec. 31, 2020 | 1,606,416 | 1,596,237 | 25 | 464 | 28 | 392 | 1,819,526 | (224,198) | 10,179 |
Common stock issued | 611,874 | 611,874 | 2 | 141 | 18 | 121 | 611,592 | ||
Offering costs | (30,594) | (30,594) | (30,594) | ||||||
Distribution reinvestments | 14,101 | 14,101 | 4 | 2 | 14,095 | ||||
Amortization of restricted stock grants | 53 | 53 | 53 | ||||||
Common stock repurchased | (12,259) | (12,259) | (4) | (1) | (12,254) | ||||
Net loss (allocated to redeemable non- controlling interest) | (19,910) | (19,889) | (19,889) | (21) | |||||
Distributions to non-controlling interests | (304) | (304) | |||||||
Distributions declared on common stock (see Note 10) | (30,509) | (30,509) | (30,509) | ||||||
Allocation to redeemable non-controlling interest | (839) | (839) | (839) | ||||||
Ending Balance at Mar. 31, 2021 | 2,138,029 | 2,128,175 | 27 | 605 | 46 | 514 | 2,401,579 | (274,596) | 9,854 |
Beginning Balance at Dec. 31, 2020 | 1,606,416 | 1,596,237 | 25 | 464 | 28 | 392 | 1,819,526 | (224,198) | 10,179 |
Net loss | (174,676) | ||||||||
Allocation to redeemable non-controlling interest | (5,556) | ||||||||
Ending Balance at Sep. 30, 2021 | 4,854,375 | 4,841,887 | 40 | 1,216 | 188 | 1,148 | 5,378,498 | (539,203) | 12,488 |
Beginning Balance at Mar. 31, 2021 | 2,138,029 | 2,128,175 | 27 | 605 | 46 | 514 | 2,401,579 | (274,596) | 9,854 |
Common stock issued | 1,368,383 | 1,368,383 | 6 | 297 | 45 | 274 | 1,367,761 | ||
Offering costs | (68,577) | (68,577) | (68,577) | ||||||
Distribution reinvestments | 17,749 | 17,749 | 5 | 3 | 17,741 | ||||
Amortization of restricted stock grants | 162 | 162 | 162 | ||||||
Common stock repurchased | (16,827) | (16,827) | (3) | (5) | (16,819) | ||||
Net loss (allocated to redeemable non- controlling interest) | (44,103) | (43,981) | (43,981) | (122) | |||||
Distributions to non-controlling interests | (246) | (246) | |||||||
Distributions declared on common stock (see Note 10) | (45,219) | (45,219) | (45,219) | ||||||
Allocation to redeemable non-controlling interest | (1,465) | (1,465) | (1,465) | ||||||
Ending Balance at Jun. 30, 2021 | 3,347,886 | 3,338,400 | 33 | 904 | 91 | 786 | 3,700,382 | (363,796) | 9,486 |
Common stock issued | 1,747,984 | 1,747,984 | 7 | 308 | 97 | 360 | 1,747,212 | ||
Offering costs | (81,819) | (81,819) | (81,819) | ||||||
Distribution reinvestments | 26,523 | 26,523 | 6 | 5 | 26,512 | ||||
Amortization of restricted stock grants | 161 | 161 | 161 | ||||||
Common stock repurchased | (10,703) | (10,703) | (2) | (3) | (10,698) | ||||
Net loss | (110,093) | ||||||||
Net loss (allocated to redeemable non- controlling interest) | (109,428) | (109,252) | (109,252) | (176) | |||||
Contributions from non-controlling interests | 3,537 | 3,537 | |||||||
Distributions to non-controlling interests | (359) | (359) | |||||||
Distributions declared on common stock (see Note 10) | (66,155) | (66,155) | (66,155) | ||||||
Allocation to redeemable non-controlling interest | (3,252) | (3,252) | (3,252) | ||||||
Ending Balance at Sep. 30, 2021 | $ 4,854,375 | $ 4,841,887 | $ 40 | $ 1,216 | $ 188 | $ 1,148 | $ 5,378,498 | $ (539,203) | $ 12,488 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Changes in Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||||||
Net loss allocated to redeemable non controlling interest | $ 665 | $ 349 | $ 221 | $ 43 | $ 83 | $ 332 | $ 642 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | ||||||||||
Net loss | $ (110,093) | $ (32,302) | $ (10,497) | $ (11,838) | $ (1,645) | $ (174,676) | $ (65,898) | $ (98,200) | $ (20,978) | $ (1,693) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||||
Management fees | 17,653 | 5,018 | 36,364 | 13,560 | 19,423 | 5,469 | ||||
Performance participation allocation | 79,552 | 0 | 111,934 | 46 | 15,061 | 10,366 | ||||
Depreciation and amortization | 82,453 | 38,543 | 197,934 | 107,993 | 155,864 | 38,896 | ||||
Amortization of deferred financing costs | 4,680 | 2,303 | 3,183 | 1,050 | ||||||
Straight-line rent amortization | (9,331) | (6,149) | (8,668) | (829) | ||||||
Deferred income amortization | (3,044) | (924) | (1,309) | (1,566) | ||||||
Unrealized (gain) loss on changes in fair value of financial instruments | (23,288) | 13,803 | 9,026 | 256 | ||||||
Foreign currency loss | 16,794 | |||||||||
Loss (gain) on sales of real estate-related securities | 0 | 5,789 | 5,789 | (600) | ||||||
Amortization of restricted stock grants | 376 | 80 | 128 | 71 | 80 | |||||
Contributions to investments in unconsolidated real estate ventures | (560) | |||||||||
Distributions from investments in unconsolidated real estate ventures | 377 | 276 | 276 | 551 | ||||||
Loss (earnings) from unconsolidated real estate ventures | 447 | 666 | 448 | 887 | 1,462 | (175) | ||||
Other items | 739 | 25 | 8 | 20 | ||||||
Change in assets and liabilities | ||||||||||
Increase in other assets | (23,009) | (11,837) | (16,806) | (7,950) | (42) | |||||
Increase (decrease) in due to affiliates | 748 | (118) | (355) | 460 | 1,549 | |||||
Increase in other liabilities | 37,049 | 18,934 | ||||||||
Increase in accounts payable, accrued expenses and other liabilities | 28,522 | 26,064 | 151 | |||||||
Net cash provided by operating activities | 174,095 | 78,770 | 112,844 | 51,105 | 45 | |||||
Cash flows from investing activities | ||||||||||
Acquisitions of real estate | (4,540,828) | (1,891,638) | (2,977,499) | (1,607,245) | ||||||
Capital improvements to real estate | (21,908) | (13,678) | (20,385) | (7,610) | ||||||
Investment in unconsolidated real estate ventures | (235) | |||||||||
Origination and purchase of investments in real estate debt | (801,792) | (73,188) | (73,271) | (454,275) | ||||||
Purchase of real estate-related equity securities | (175,002) | |||||||||
Proceeds from paydown of principal and settlement of real estate-related securities | 41,502 | 111,866 | 126,729 | 178,696 | ||||||
Net cash used in investing activities | (5,498,263) | (1,866,638) | (2,944,426) | (1,890,434) | ||||||
Cash flows from financing activities | ||||||||||
Proceeds from issuance of common stock, net | 3,583,025 | 556,857 | 853,205 | 761,712 | 164,674 | |||||
Offering costs paid | (27,996) | (10,421) | (14,768) | (7,434) | (898) | |||||
Subscriptions received in advance | 476,520 | 88,402 | 113,532 | 109,718 | 900 | |||||
Repurchase of common stock | (39,789) | (28,462) | (43,711) | (206) | ||||||
Borrowings from mortgage notes and revolving credit facility | 2,555,679 | 1,251,843 | 2,053,047 | 996,065 | ||||||
Repayments of mortgage notes and revolving credit facility | (222,111) | (1,628) | (2,385) | (72,906) | ||||||
(Repayments) borrowings under repurchase agreements, short term net | (42,557) | (81,035) | (38,478) | 81,035 | ||||||
Borrowings under secured financings on investments in real estate debt | 140,150 | 114,408 | 115,796 | |||||||
Proceeds from (Repayments of) Secured Debt | (65,697) | |||||||||
Settlement of repurchase agreements | (50,099) | |||||||||
Payment of deferred financing costs | (26,253) | (7,569) | (13,779) | (8,052) | ||||||
Contributions from non-controlling interests | 3,537 | 60,192 | 60,192 | 12,520 | ||||||
Repurchase of non-controlling interests | (58,837) | (58,837) | ||||||||
Distributions to non-controlling interests | (909) | (1,556) | (1,860) | (384) | ||||||
Distributions | (68,532) | (24,788) | (35,823) | (8,699) | ||||||
Net cash provided by financing activities | 6,265,067 | 1,857,406 | 2,936,032 | 1,863,369 | 164,676 | |||||
Net change in cash and cash equivalents and restricted cash | 940,899 | 69,538 | 104,450 | 24,040 | 164,721 | |||||
Cash and cash equivalents and restricted cash, beginning of year | 258,499 | 293,411 | 188,961 | 188,961 | 164,921 | 200 | ||||
Cash and cash equivalents and restricted cash, end of year | 1,234,310 | 293,411 | 258,499 | 188,961 | 164,921 | 1,234,310 | 258,499 | 293,411 | 188,961 | 164,921 |
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets: | ||||||||||
Cash and cash equivalents | 671,683 | 128,650 | 132,342 | 48,479 | 164,021 | 671,683 | 132,342 | 128,650 | 48,479 | 164,021 |
Restricted cash | 562,627 | 164,761 | 126,157 | 140,482 | 900 | 562,627 | 126,157 | 164,761 | 140,482 | 900 |
Cash and cash equivalents and restricted cash, end of year | $ 1,234,310 | $ 293,411 | $ 258,499 | $ 188,961 | $ 164,921 | 1,234,310 | 258,499 | 293,411 | 188,961 | 164,921 |
Supplemental disclosure of cash flow information: | ||||||||||
Cash paid for interest | 77,041 | 48,011 | ||||||||
Non-cash investing and financing activities: | ||||||||||
Assumption of mortgage notes in conjunction with acquisitions in real estate | 156,515 | 328,664 | ||||||||
Accrued stockholder servicing fee due to affiliate | 165,508 | 26,383 | 36,260 | 35,640 | 10,830 | |||||
Accrued offering costs due to affiliates | 1,468 | $ 4,375 | ||||||||
Right of use asset/liability | 6,408 | 6,408 | ||||||||
Redeemable non-controlling interest issued as settlement for performance participation allocation | 15,061 | 10,366 | 10,366 | |||||||
Accrued distributions | 24,756 | 7,350 | 8,682 | 4,216 | ||||||
Distribution reinvestment | 58,373 | 29,314 | 41,551 | $ 11,227 | ||||||
Allocation to redeemable non-controlling interest | $ 5,556 | $ 792 | $ 1,282 |
Organization and Business Purpo
Organization and Business Purpose | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization and Business Purpose | 1. Organization and Business Purpose Starwood Real Estate Income Trust, Inc. (the “Company”) was formed on June 22, 2017 as a Maryland corporation and has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2019. The Company was organized to invest primarily in stabilized, income-oriented commercial real estate and debt secured by commercial real estate. The Company’s portfolio is principally comprised of properties located in the United States. The Company may diversify its portfolio on a global basis through the acquisition of properties outside of the United States, with a focus on Europe. To a lesser extent, the Company invests in real estate debt, including loans secured by real estate and real estate-related securities. The Company is the sole general partner of Starwood REIT Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”). Starwood REIT Special Limited Partner, L.L.C. (the “Special Limited Partner”), a wholly owned subsidiary of Starwood Capital Group Holdings, L.P. (the “Sponsor”), owns a special limited partner interest in the Operating Partnership. Substantially all of the Company’s business is conducted through the Operating Partnership. The Company and the Operating Partnership are externally managed by Starwood REIT Advisors, L.L.C. (the “Advisor”), an affiliate of the Sponsor. As of September 30, 2021, the Company owned 245 real estate properties, one investment in an unconsolidated real-estate venture and 57 positions in real estate debt investments. The Company currently operates in seven reportable segments: Multifamily, Hospitality, Industrial, Office, Medical Office, Other and Investments in Real Estate Debt. Financial results by segment are reported in Note 14. On December 27, 2017, the Company commenced its initial public offering of up to $5.0 billion in shares of common stock (the “Initial Public Offering”). On June 2, 2021, the Initial Public Offering terminated and the Company commenced a follow-on public offering of up to $10.0 billion in shares of common stock, consisting of up to $8.0 billion in shares in its primary offering and up to $2.0 billion in shares pursuant to its distribution reinvestment plan (the “Follow-on Public Offering”). As of September 30, 2021, the Company had received aggregate net proceeds of $5.7 billion from the sale of shares of the Company’s common stock through the Company’s public offerings. | 1. Organization and Business Purpose Starwood Real Estate Income Trust, Inc. (the “Company”) was formed on June 22, 2017 as a Maryland corporation and has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2019. The Company was organized to invest primarily in stabilized, income-oriented commercial real estate and debt secured by commercial real estate. The Company’s portfolio is principally comprised of properties located in the United States. The Company may diversify its portfolio on a global basis through the acquisition of properties outside of the United States, with a focus on Europe. To a lesser extent, the Company invests in debt secured by commercial real estate and real estate-related securities. The Company is the sole general partner of Starwood REIT Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”). Starwood REIT Special Limited Partner, L.L.C. (the “Special Limited Partner”), a wholly owned subsidiary of Starwood Capital Group Holdings, L.P. (the “Sponsor”), owns a special limited partner interest in the Operating Partnership. Substantially all of the Company’s business is conducted through the Operating Partnership. The Company and the Operating Partnership are externally managed by Starwood REIT Advisors, L.L.C. (the “Advisor”), an affiliate of the Sponsor. The Company has registered with the Securities and Exchange Commission (the “SEC”) an 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 “Offering”). The Company is selling in the Offering any combination of four classes of shares of its common stock, with a dollar value up to the maximum aggregate amount. The share classes have different upfront selling commissions, dealer manager fees and ongoing stockholder servicing fees. The Company intends to continue selling shares on a monthly basis. On October 29, 2020, the As of December 31, 2020, the Company owned 144 real estate properties, one investment in an unconsolidated real estate venture and 56 positions in real estate-related securities. The Company currently operates in six reportable segments: Multifamily, Hotel, Industrial, Office, Medical Office and Real Estate-Related Securities. Financial results by segment are reported in Note 14. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. All significant intercompany balances and transactions have been eliminated in consolidation. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC. Certain amounts in the Company’s prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation. The Company has chosen to break out a financial statement line item in the Company’s Condensed Consolidated Statements of Cash Flows. On the Condensed Consolidated Statements of Cash Flows, “Straight-line rent amortization” has been reclassified from “Change in assets and liabilities—increase in other assets” for the nine months ended September 30, 2020. Such reclassification had no effect on the previously reported totals or subtotals included in the Condensed Consolidated Statements of Cash Flows. The accompanying unaudited 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. For consolidated joint ventures, the non-controlling partner’s share of the assets, liabilities and operations of the joint ventures is included in non-controlling interests as equity of the Company. The non-controlling partner’s interest is generally computed as the joint venture partner’s ownership percentage. 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. The Operating Partnership is considered to be a VIE. The Company consolidates the Operating Partnership because it has the ability to direct the most significant activities of the entity such as purchases, dispositions, financings, budgets, and overall operating plans. Where the Company does not have the power to direct the activities of the VIE that most significantly impact its economic performance, the Company’s interest for those partially owned entities are accounted for using the equity method of accounting. The Company meets the VIE disclosure exemption criteria, as the Company’s interest in the Operating Partnership is considered a majority voting interest. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. 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. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. Restricted Cash Restricted cash primarily consists of cash received for subscriptions prior to the date in which the subscriptions are effective. The Company’s restricted cash is held primarily in a bank account controlled by the Company’s transfer agent but in the name of the Company. The remaining balance of restricted cash primarily consists of amounts in escrow related to real estate taxes and insurance in connection with mortgages at certain of the Company’s properties and tenant security deposits. 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. 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 cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related costs, 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 35 - 40 years Building and land improvements 5 - 15 years Furniture, fixtures and equipment 5 - 7 years Lease intangibles and leasehold improvements Shorter of useful life or lease term Repairs and maintenance are expensed to operations as incurred and are included in Rental property operating and Hospitality operating expenses on the Company’s Condensed Consolidated Statements of Operations. Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. 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 received 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. The amortization of acquired above-market and below-market leases is recorded as an adjustment to Rental revenue on the Company’s Condensed Consolidated Statements of Operations. The amortization of in-place leases is recorded as an adjustment to Depreciation and amortization expense on the Company’s Condensed Consolidated Statements of Operations. Certain of the Company’s investments in real estate are subject to a ground lease, for which a lease liability and corresponding right-of-use (“ROU”) asset were recognized. The Company calculates the amount of the lease liability and ROU asset by taking the present value of the remaining lease payments, and adjusting the ROU asset for any existing straight-line ground rent liability and acquired ground lease intangibles. The Company’s estimated incremental borrowing rate of a loan with a similar term as the ground lease was used as the discount rate. The lease liability is included as a component of Other liabilities and the related ROU asset is recorded as a component of Investments in real estate, net on the Company’s Condensed Consolidated Balance Sheets. The amortization of the below-market ground lease is recorded as an adjustment to Depreciation and amortization expense on the Company’s Condensed Consolidated Statements of Operations. The Company’s management reviews its real estate properties for impairment when there is an event or change in circumstances that indicates an impaired value. Since cash flows on real estate properties considered to be “long-lived assets to be held and used” are considered on an undiscounted basis to determine whether an asset has been impaired, the Company’s strategy of holding properties over the long term decreases the likelihood of recording an impairment loss. 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 must be reduced to their fair value. During the periods presented, no such impairment occurred. Investments in Unconsolidated Real Estate Ventures Investments in unconsolidated joint ventures are initially recorded at cost, and subsequently adjusted for equity in earnings or losses and cash contributions and distributions. Under the equity method of accounting, the net equity investment of the Company is reflected within the Condensed Consolidated Balance Sheets, and the Company’s share of net income or loss from the joint ventures is included within the Company’s Condensed Consolidated Statements of Operations. The joint venture agreements may designate different percentage allocations among investors for profits and losses; however, the Company’s recognition of joint venture income or loss generally follows the joint venture’s distribution priorities, which may change upon the achievement of certain investment return thresholds. The Company’s investments in unconsolidated joint ventures are reviewed for impairment periodically and the Company records impairment charges when events or circumstances change indicating that a decline in the fair values below the carrying values has occurred and such decline is other-than-temporary. The ultimate realization of the investment in unconsolidated joint ventures is dependent on a number of factors, including the performance of each investment and market conditions. Investments in Real Estate Debt The Company’s investments in real estate debt consists of loans secured by real estate and real estate-related securities. The Company has elected to classify its real estate-related securities as trading securities and record such investments at fair value. As such, the resulting unrealized gains and losses of such securities are recorded as a component of Income (loss) from investments in real estate debt on the Company’s Condensed Consolidated Statements of Operations. The Company elected the fair value option (“FVO”) for its loans secured by real estate. As such, the resulting unrealized gains and losses of such loans are recorded as a component of Income (loss) from investments in real estate debt on the Company’s Condensed Consolidated Statements of Operations. Interest income from the Company’s investments in real estate-related securities is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of premiums and discounts associated with these investments is deferred and recorded over the term of the investment as an adjustment to yield. Upfront costs and fees related to items for which the FVO is elected shall be recognized in earnings as incurred and not deferred. Such items are recorded as components of Income (loss) from investments in real estate debt on the Company’s Condensed Consolidated Statements of Operations. Derivative Instruments The Company uses derivative financial instruments such as foreign currency swaps, interest rate swaps and interest rate caps to manage risks from fluctuations in exchange rates and interest rates. The Company records its derivatives on its Condensed Consolidated Balance Sheets at fair value and such amounts are included in Other assets or Other liabilities. Any changes in the fair value of these derivatives are recorded in earnings. Foreign Currency The Company’s functional currency is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the reporting period. Income statement accounts are translated at average rates for the reporting period. Gains and losses from translation of foreign denominated transactions into U.S. dollars are included in current results of operations. Gains and losses resulting from foreign currency transactions are also included in current results of operations. Aggregate foreign currency translation and transaction losses included in operations totaled ($11.4) million and ($16.8) million for the three and nine months ended September 30, 2021, respectively. These amounts are recorded as a component of Income (loss) from investments in real estate debt on the Company’s Condensed Consolidated Statements of Operations. Fair Value Measurements Under normal market conditions, the fair value of an investment is the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). Additionally, there is a hierarchal framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment and the state of the market place, including the existence and transparency of transactions between market participants. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following levels within the fair value hierarchy: 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. Valuation of assets and liabilities measured at fair value The Company’s investments in real estate debt are reported at fair value. The Company’s investments in real estate debt include commercial mortgage-backed securities (“CMBS”) and residential mortgage-backed securities (“RMBS”). The Company generally determines the fair value of its investments by utilizing third-party pricing service providers. In determining the value of a particular investment, the pricing service providers may use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models to determine the reported price. The pricing service providers’ internal models for real estate-related securities usually consider the attributes applicable to a particular class of security (e.g., credit rating, seniority), current market data, and estimated cash flows for each class and incorporate deal collateral performance such as prepayment speeds and default rates, as available. Certain of the Company’s investments in real estate debt include loans secured by real estate, such as its term loan, which may not have readily available market quotations. In such cases, the Company will generally determine the initial value based on the origination amount or acquisition price of such investment if acquired by the Company or the par value of such investment if originated by the Company. Following the initial measurement, the Company will determine fair value by utilizing or reviewing certain of the following inputs (i) market yield data, (ii) discounted cash flow modeling, (iii) collateral asset performance, (iv) local or macro real estate performance, (v) capital market conditions, (vi) debt yield or loan-to-value ratios and (vii) borrower financial condition and performance. The Company’s investments in equity securities of public real estate-related companies are reported at fair value and were recorded as a component of Other assets on the Company’s Condensed Consolidated Balance Sheets. As such, the resulting unrealized gains and losses are recorded as a component of Other income (expense) on the Company’s Condensed Consolidated Statements of Operations. During the three months ended September 30, 2021, the Company recognized $1.3 million of unrealized losses on its investments in equity securities. In determining the fair value of public equity securities, the Company utilizes the closing price of such securities in the principal market in which the security trades. The Company’s derivative financial instruments are reported at fair value. The Company’s interest rate swap agreements are valued using a discounted cash flow analysis based on the terms of the contract and the forward interest rate curve adjusted for the Company’s nonperformance risk. The Company’s interest rate cap positions are valued using models developed by the respective counterparty as well as third party pricing service providers that use as their basis readily observable market parameters (such as forward yield curves and credit default swap data). As of September 30, 2021, the Company held 15 interest rate caps with an aggregate notional value of $3.0 billion, one interest rate cap with an aggregate notional value of kr301.5 million associated with the Danish investment and two interest rate swaps with an aggregate notional value of $252.2 million. The fair values of the Company’s foreign currency swaps are determined by comparing the contracted forward exchange rate to the current market exchange rate. The current market exchange rates are determined by using market spot rates, forward rates and interest rate curves for the underlying instruments. As of September 30, 2021, the Company held four GBP, two EUR and one DKK foreign currency swaps, with an aggregate notional value of £268 million, €85 million and kr165 million, respectively. The fair values of the Company’s financial instruments (other than investments in real estate debt, mortgage notes, revolving credit facility and derivative instruments), including cash, cash equivalents and restricted cash and other financial instruments, approximate their carrying or contract value. The following table details the Company’s assets and liabilities measured at fair value on a recurring basis ($ in thousands): September 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Investments in real estate debt $ — $ 478,669 $ 485,406 $ 964,075 $ — $ 218,225 $ — $ 218,225 Equity securities 173,732 — — 173,732 — — — — Derivatives — 62,344 — 62,344 — 1,410 — 1,410 Total $ 173,732 $ 541,013 $ 485,406 $ 1,200,151 $ — $ 219,635 $ — $ 219,635 Liabilities: Derivatives $ — $ 952 $ — $ 952 $ — $ 5,167 $ — $ 5,167 Total $ — $ 952 $ — $ 952 $ — $ 5,167 $ — $ 5,167 The following table details the Company’s assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Investments in Balance as of December 31, 2020 $ — Purchases 504,540 Included in net income Foreign exchange (19,134 ) Unrealized gain (loss) — Balance as of September 30, 2021 $ 485,406 The following table contains the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy ($ in thousands): September 30, 2021 Fair Value Valuation Technique Unobservable Inputs Weighted Impact to Valuation from an Investments in Real Estate Debt $ 485,406 Transacted value Cost N/A N/A Valuation of liabilities not measured at fair value 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 the present value using an appropriate discount rate. Additionally, the Company considers current market rate 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. As of September 30, 2021, the fair value of the Company’s mortgage notes, revolving credit facility and secured financings on investments in real estate debt was approximately $26.8 million below the outstanding principal balance. Deferred Charges The Company’s deferred charges include financing and leasing costs. Deferred financing costs include legal, structuring and other loan costs incurred by the Company for its financing agreements. Deferred financing costs related to the Company’s mortgage notes are recorded as an offset to the related liability and amortized over the term of the applicable financing instruments as interest expense. Deferred financing costs related to the Company’s revolving credit facility and its unsecured revolving credit facility are recorded as a component of Other assets on the Company’s Condensed Consolidated Balance Sheets and amortized over the term of the applicable financing agreement. Deferred leasing costs incurred in connection with new leases, which consist primarily of brokerage commissions, are recorded as a component of Other assets on the Company’s Condensed Consolidated Balance Sheets and amortized over the life of the related lease. Revenue Recognition The Company commences revenue recognition on its leases based on a number of factors, including the initial determination that the contract is or contains a lease. Generally, all of the Company’s contracts are, or contain leases, and therefore revenue is recognized when the lessee takes possession of or controls the physical use of the leased assets. In most instances this occurs on the lease commencement date. At the inception of a new lease, including new leases that arise from amendments, the Company assesses the terms and conditions of the lease to determine the proper lease classification. The Company adopted the provisions of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) and related ASUs subsequently issued (collectively, “ASC 842”) as of January 1, 2019. A lease is classified as an operating lease if none of the following criteria are met: (i) ownership transfers to the lessee at the end of the lease term, (ii) the lessee has a purchase option that is reasonably expected to be exercised, (iii) the lease term is for a major part of the economic life of the leased property, (iv) the present value of the future lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the leased property, and (v) the leased property is of such a specialized nature that it is expected to have no future alternative use to the Company at the end of the lease term. If one or more of these criteria are met, the lease will generally be classified as a sales-type lease, unless the lease contains a residual value guarantee from a third party other than the lessee, in which case it would be classified as a direct financing lease under certain circumstances in accordance with ASC 842. The Company’s rental revenue primarily consists of fixed contractual base rent arising from tenant leases at the Company’s properties under operating leases. Revenue under operating leases that are deemed probable of collection, is recognized as revenue on a straight-line basis over the non-cancelable terms of the related leases. For leases that have fixed and measurable rent escalations, the difference between such rental income earned and the cash rent due under the provisions of the lease is recorded in the Company’s Condensed Consolidated Balance Sheets. The Company’s Hospitality revenue consists of room revenue and food and beverage revenue. Room revenue is recognized when the related room is occupied and other hospitality revenue is recognized when the service is rendered. For leases that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. Certain of the Company’s contracts contain nonlease components (e.g., charges for management fees, common area maintenance, and reimbursement of third-party maintenance expenses) in addition to lease components (i.e., monthly rental charges). Services related to nonlease components are provided over the same period of time as, and billed in the same manner as, monthly rental charges. The Company elected to apply the practical expedient available under ASC 842, for all classes of assets, not to segregate the lease components from the nonlease components when accounting for operating leases. Since the lease component is the predominant component under each of these leases, combined revenues from both the lease and nonlease components are accounted for in accordance with ASC 842 and reported as Rental revenues in the Company’s Condensed Consolidated Statements of Operations. In connection with its investments, the Company has acquired assets subject to loan programs designed to encourage housing development. The proceeds from these loans are governed by restrictive covenants. For certain housing development loans, so long as the Company remains in compliance with the covenants and program requirements, the loans will be forgiven in equal annual installments until the loans are discharged in full. The Company treats these loans as deferred income and records them as a component of Other liabilities on the Company’s Condensed Consolidated Balance Sheets. As of September 30, 2021 and December 31, 2020, deferred income related to these loans amounted to $5.2 million and $5.8 million, respectively. As the loan balances are reduced during the compliance period, the Company will record income associated with the discharge of the loans as a component of Other revenue on the Company’s Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2021, Other revenue related to these loans amounted to $0.2 million and $0.6 million, respectively. For the three and nine months ended September 30, 2020, Other revenue related to these loans amounted to $0.2 million and $0.6 million, respectively. Other revenues and interest income are recorded on an accrual basis. Organization and Offering Expenses Organization costs are expensed as incurred and recorded as a component of General and administrative expenses on the Company’s Condensed Consolidated Statements of Operations, and offering costs are charged to equity as such amounts are incurred. The Advisor advanced $7.3 million of organization and offering expenses on behalf of the Company in connection with the Initial Public Offering (including legal, accounting, and other expenses attributable to the organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) through December 21, 2019, the first anniversary of the date on which the proceeds from escrow were released. The Company reimburses the Advisor for all such advanced expenses ratably over a 60-month period following December 21, 2019. These organization and offering costs are recorded as a component of Due to affiliates on the Company’s Condensed Consolidated Balance Sheets. Starwood Capital, L.L.C. (the “Dealer Manager”), a registered broker-dealer affiliated with the Advisor, serves as the dealer manager for the Company’s public offerings. The Dealer Manager is entitled to receive selling commissions and dealer manager fees based on the transaction price of each applicable class of shares sold in the primary offering. The Dealer Manager is also entitled to receive a stockholder servicing fee based on the aggregate net asset value (“NAV”) of the Company’s outstanding Class T shares, Class S shares, and Class D shares. The following table details the selling commissions, dealer manager fees, and stockholder servicing fees for each applicable share class as of September 30, 2021: Common Stock Class T Common Stock Class S Common Stock Class D Common Stock Class I Selling commissions and dealer manager fees up to 3.5 % up to 3.5 % up to 1.5 % — Stockholder servicing fee (% of NAV) 0.85 % 0.85 % 0.25 % — For Class T shares sold in the primary offering, investors will pay upfront selling commissions of up to 3.0% of the transaction price and upfront dealer manager fees of 0.5% of the transaction price, however such amounts may vary at certain participating broker-dealers, provided that the sum will not exceed 3.5% of the transaction price. For Class S shares sold in the primary offering, investors will pay upfront selling commissions of up to 3.5% of the transaction price. For Class D shares sold in the primary offering, investors will pay upfront selling commissions of up to 1.5% of the transaction price. Prior to February 4, 2020, no upfront selling commissions were paid on Class D shares. The Dealer Manager is entitled to receive stockholder servicing fees of 0.85% per annum of the aggregate NAV for Class T shares and Class S shares. For Class T shares, such stockholder servicing fee includes, an advisor stockholder servicing fee of 0.65% per annum, and a dealer stockholder servicing fee of 0.20% per annum, of the aggregate NAV for the Class T shares, however, with respect to Class T shares sold through certain participating broker-dealers, the advisor stockholder servicing fee and the dealer stockholder servicing fee may be other amounts, provide | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany balances and transactions have been eliminated in consolidation. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are presented fairly and that estimates made in preparing its consolidated financial statements are reasonable and prudent. The accompanying consolidated financial statements include the accounts of the Company, the Company’s subsidiaries and joint ventures in which the Company has a controlling interest. For consolidated joint ventures, the non-controlling partner’s share of the assets, liabilities and operations of the joint ventures is included in non-controlling interests as equity of the Company. The non-controlling partner’s interest is generally computed as the joint venture partner’s ownership percentage. 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. The Operating Partnership is considered to be a VIE. The Company consolidates the Operating Partnership because it has the ability to direct the most significant activities of the entities such as purchases, dispositions, financings, budgets, and overall operating plans. Where the Company does not have the power to direct the activities of the VIE that most significantly impact its economic performance, the Company’s interest for those partially owned entities are accounted for using the equity method of accounting. The Company meets the VIE disclosure exemption criteria, as the Company’s interest in the Operating Partnership is considered a majority voting interest. The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. 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. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. Restricted Cash Restricted cash primarily consists of cash received for subscriptions prior to the date in which the subscriptions are effective. The Company’s restricted cash is held primarily in a bank account controlled by the Company’s transfer agent but in the name of the Company. The remaining balance of restricted cash primarily consists of amounts in escrow related to real estate taxes and insurance in connection with mortgages at certain of the Company’s properties and tenant security deposits. 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. 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 cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related costs, 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 35 - 40 years Building and land improvements 5 - 15 years Furniture, fixtures and equipment 5 - 7 years Lease intangibles and leasehold improvements Shorter of useful life or lease term Repairs and maintenance are expensed to operations as incurred and are included in Rental property operating and Hotel operating expenses on the Company’s Consolidated Statements of Operations. Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. 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 received 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. 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 expense on the Company’s Consolidated Statements of Operations. Certain of the Company’s investments in real estate are subject to a ground lease, for which a lease liability and corresponding right-of-use (“ROU”) asset were recognized. The Company calculates the amount of the lease liability and ROU asset by taking the present value of the remaining lease payments, and adjusting the ROU asset for any existing straight-line ground rent liability and acquired ground lease intangibles. The Company’s estimated incremental borrowing rate of a loan with a similar term as the ground lease was used as the discount rate. The lease liability is included as a component of Accounts payable, accrued expenses, and other liabilities and the related ROU asset is recorded as a component of Investments in real estate, net on the Company’s Consolidated Balance Sheets. The amortization of the below-market ground lease is recorded as an adjustment to Depreciation and amortization expense on the Company’s Consolidated Statements of Operations. The Company’s management reviews its real estate properties for impairment when there is an event or change in circumstances that indicates an impaired value. Since cash flows on real estate properties considered to be “long-lived assets to be held and used” are considered on an undiscounted basis to determine whether an asset has been impaired, the Company’s strategy of holding properties over the long term decreases the likelihood of recording an impairment loss. 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 Investments in Unconsolidated Real Estate Ventures Investments in unconsolidated joint ventures are initially recorded at cost, and subsequently adjusted for equity in earnings and cash contributions and distributions. Under the equity method of accounting, the net equity investment of the Company is reflected within the Consolidated Balance Sheets, and the Company’s share of net income or loss from the joint ventures is included within the Company’s Consolidated Statements of Operations. The joint venture agreements may designate different percentage allocations among investors for profits and losses; however, the Company’s recognition of joint venture income or loss generally follows the joint venture’s distribution priorities, which may change upon the achievement of certain investment return thresholds. The Company’s investments in unconsolidated joint ventures are reviewed for impairment periodically and the Company records impairment charges when events or circumstances change indicating that a decline in the fair values below the carrying values has occurred and such decline is other-than-temporary. The ultimate realization of the investment in unconsolidated joint ventures is dependent on a number of factors, including the performance of each investment and market conditions. Investments in Real Estate-Related Securities The Company has elected to classify its investment in real estate-related securities as trading securities and carry such investments at estimated fair value. As such, the resulting gains and losses are recorded as a component of Income from real estate-related securities, net on the Company’s Consolidated Statements of Operations. Interest income from the Company’s investments in real estate-related securities is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of premiums and discounts associated with these investments is deferred and recorded over the term of the investment as an adjustment to yield. Such items are recorded as components of Investments in real estate-related securities on the Company’s Consolidated Balance Sheets. Derivative Instruments In the normal course of business, the Company is exposed to the effect of interest rate changes. The Company seeks to manage these risks by following established risk management policies and procedures including the use of derivatives to hedge interest rate risk on debt instruments. The Company recognizes all derivatives as either assets or liabilities in the Company’s Consolidated Balance Sheets and measures those instruments at fair value. Fair Value Measurements Under normal market conditions, the fair value of an investment is the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). Additionally, there is a hierarchal framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment and the state of the market place, including the existence and transparency of transactions between market participants. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following levels within the fair value hierarchy: 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. Valuation The Company generally determines the fair value of its real estate-related securities by utilizing third-party pricing service providers. In determining the value of a particular investment, the pricing service providers may use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models to determine the reported price. The pricing service providers’ internal models for real estate-related securities usually consider the attributes applicable to a particular class of security (e.g., credit rating, seniority), current market data, and estimated cash flows for each class and incorporate deal collateral performance such as prepayment speeds and default rates, as available. On April 1, 2020 the entire Investments in real estate-related securities portfolio was transferred into Level 2 from Level 3 primarily due to increased price transparency. As of December 31, 2020 and December 31, 2019, the Company’s investments in real estate-related securities are classified as Level 2. 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 the present value using an appropriate discount rate. Additionally, the Company considers current market rate 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. As of December 31, 2020, the fair value of the Company’s mortgage notes, revolving credit facility and repurchase agreements was approximately $24.3 million below the outstanding principal balance. The Company’s interest rate swap agreements are valued using a discounted cash flow analysis based on the terms of the contract and the forward interest rate curve adjusted for the Company’s nonperformance risk. The Company’s interest rate cap positions are valued using models developed by the respective counterparty as well as third party pricing service providers that use as their basis readily observable market parameters (such as forward yield curves and credit default swap data). The Company’s derivative positions are classified as Level 2. As of December 31, 2020, the fair value of the Company’s interest rate caps were approximately $5.4 million below their cost. As of December 31, 2020, the Company’s interest rate swaps had an aggregate fair value liability of $5.2 million. The fair values of the Company’s financial instruments (other than real estate-related securities, mortgage notes, revolving credit facility and derivative instruments), including cash and cash equivalents and other financial instruments, approximate their carrying or contract value. Deferred Charges The Company’s deferred charges include financing and leasing costs. Deferred financing costs include legal, structuring and other loan costs incurred by the Company for its financing agreements. Deferred financing costs related to the Company’s mortgage notes are recorded as an offset to the related liability and amortized over the term of the applicable financing instruments as interest expense. Deferred financing costs related to the Company’s revolving credit facility and its unsecured revolving credit facility are recorded as a component of Other assets on the Company’s Consolidated Balance Sheets and amortized over the term of the applicable financing agreement. Deferred leasing costs incurred in connection with new leases, which consist primarily of brokerage commissions, are recorded as a component of Other assets on the Company’s Consolidated Balance Sheets and amortized over the life of the related lease. Revenue Recognition The Company commences revenue recognition on its leases based on a number of factors, including the initial determination that the contract is or contains a lease. Generally, all of the Company’s contracts are, or contain leases, and therefore revenue is recognized when the lessee takes possession of or controls the physical use of the leased assets. In most instances this occurs on the lease commencement date. At the inception or acquisition of a lease, including new leases that arise from amendments, the Company assesses the terms and conditions of the lease to determine the proper lease classification. The Company adopted the provisions of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) and related ASUs subsequently issued (collectively, “ASC 842”) as of January 1, 2019. A lease is classified as an operating lease if none of the following criteria are met: (i) ownership transfers to the lessee at the end of the lease term, (ii) the lessee has a purchase option that is reasonably expected to be exercised, (iii) the lease term is for a major part of the economic life of the leased property, (iv) the present value of the future lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the leased property, and (v) the leased property is of such a specialized nature that it is expected to have no future alternative use to the Company at the end of the lease term. If one or more of these criteria are met, the lease will generally be classified as a sales-type lease, unless the lease contains a residual value guarantee from a third party other than the lessee, in which case it would be classified as a direct financing lease under certain circumstances in accordance with ASC 842. The Company’s rental revenue primarily consists of fixed contractual base rent arising from tenant leases at the Company’s properties under operating leases. Revenue under operating leases that are deemed probable of collection, is recognized as revenue on a straight-line basis over the non-cancelable terms of the related leases. For leases that have fixed and measurable rent escalations, the difference between such rental income earned and the cash rent due under the provisions of the lease is recorded in the Company’s Consolidated Balance Sheets. The Company’s Hotel revenue consists of room revenue and food and beverage revenue. Room revenue is recognized when the related room is occupied and other hotel revenue is recognized when the service is rendered. For leases that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. Certain of the Company’s contracts contain nonlease components (e.g., charges for management fees, common area maintenance, and reimbursement of third-party maintenance expenses) in addition to lease components (i.e., monthly rental charges). Services related to nonlease components are provided over the same period of time as, and billed in the same manner as, monthly rental charges. The Company elected to apply the practical expedient available under ASC 842, for all classes of assets, not to segregate the lease components from the nonlease components when accounting for operating leases. Since the lease component is the predominant component under each of these leases, combined revenues from both the lease and nonlease components are accounted for in accordance with ASC 842 and reported as Rental revenues in the Company’s Consolidated Statements of Operations. In connection with its investments, the Company has utilized loan programs designed to encourage housing development. The proceeds from these loans are governed by restrictive covenants. For certain housing development loans, so long as the Company remains in compliance with the covenants and program requirements, the loans will be forgiven in equal annual installments until the loans are discharged in full. The Company treats these loans as deferred income and records them as a component of Accounts payable, accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. As of December 31, 2020 and 2019, deferred income related to these loans amounted to $5.8 million and $6.6 million, respectively. As the loan balances are reduced during the compliance period, the Company will record income associated with the discharge of the loans as a component of Other revenue on the Company’s Consolidated Statements of Operations. For the year ended December 31, 2020 and 2019, Other revenue related to these loans amounted to $0.8 million and $1.5 million, respectively. Other revenues and interest income are recorded on an accrual basis. Organization and Offering Expenses Organization costs are expensed as incurred and recorded as a component of General and administrative expenses on the Company’s Consolidated Statements of Operations and offering costs are charged to equity as such amounts are incurred. The Advisor advanced $7.3 million of 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 December 21, 2019, the first anniversary of the date on which the proceeds from escrow were released. The Company reimburses the Advisor for all such advanced expenses ratably over a 60 month period following December 21, 2019. These organization and offering costs are recorded as a component of Due to affiliates on the Company’s Consolidated Balance Sheets as of December 31, 2020 and 2019. Starwood Capital, L.L.C. (the “Dealer Manager”), a registered broker-dealer affiliated with the Advisor, serves as the dealer manager for the Offering. The Dealer Manager is entitled to receive selling commissions and dealer manager fees based on the transaction price of each applicable class of shares sold in the primary offering. The Dealer Manager is also entitled to receive a stockholder servicing fee based on the aggregate net asset value (“NAV”) of the Company’s outstanding Class T shares, Class S shares and Class D shares. The following table details the selling commissions, dealer manager fees, and stockholder servicing fees for each applicable share class as of December 31, 2020: Class T Shares Class S Shares Class D Shares Class I Shares Selling commissions and dealer manager fees (% of transaction price) up to 3.5% up to 3.5% up to 1.5% — Stockholder servicing fee (% of NAV) 0.85% 0.85% 0.25% — For Class S shares sold in the primary offering, investors will pay upfront selling commissions of up to 3.5% of the transaction price. For Class T shares sold in the primary offering, investors will pay upfront selling commissions of up to 3.0% of the transaction price and upfront dealer manager fees of 0.5% of the transaction price, however such amounts may vary at certain participating broker-dealers, provided that the sum will not exceed 3.5% of the transaction price. For Class D shares sold in the primary offering, investors will pay upfront selling commissions of up to 1.5% of the transaction price. Prior to February 4, 2020, no upfront selling commissions were paid on Class D shares. The Dealer Manager is entitled to receive stockholder servicing fees of 0.85% per annum of the aggregate NAV for Class S shares and Class T shares. For Class T shares such stockholder servicing fee includes, an advisor stockholder servicing fee of 0.65% per annum, and a dealer stockholder servicing fee of 0.20% per annum, of the aggregate NAV for the Class T shares, however, with respect to Class T shares sold through certain participating broker-dealers, the advisor stockholder servicing fee and the dealer stockholder servicing fee may be other amounts, provided that the sum of such fees will always equal 0.85% per annum of the NAV of such shares. For Class D shares the Dealer Manager is entitled to a stockholder servicing fee equal to 0.25% per annum of the aggregate NAV for the Class D shares. There is no stockholder servicing fee with respect to Class I shares. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Offering, which provide, among other things, for the re-allowance of the full amount of the selling commissions and dealer manager fees received and all or a portion of the stockholder servicing fees to such selected dealers. The Company will cease paying the stockholder servicing fee with respect to any Class T share, Class S share or Class D share sold in the primary offering at the end of the month in which the total selling commissions, dealer manager fees and stockholder servicing fees paid with respect to the shares held by such stockholder within such account would exceed 8.75% (or, in the case of Class T shares sold through certain participating broker-dealers, a lower limit as set forth in any applicable agreement between the Dealer Manager and a participating broker-dealer) of the gross proceeds from the sale of such share (including the gross proceeds of any shares issued under the Company’s distribution reinvestment plan with respect thereto). The Company will accrue the full cost of the stockholder servicing fee as an offering cost at the time each Class T, Class S and Class D share is sold during the primary offering. As of December 31, 2020 and 2019, the Company had accrued $73.2 million and $44.1 million, respectively, of stockholder servicing fees related to shares sold and recorded such amount as a component of Due to affiliates on the Company’s Consolidated Balance Sheets. Income Taxes The Company elected to be taxed as a REIT under the Internal Revenue Code (the “Code”), for federal income tax purposes, beginning with its taxable year ended December 31, 2019. As long as the Company qualifies for taxation as a REIT, it generally will not be subject to U.S. federal corporate income tax on its net taxable income that is currently distributed to its stockholders. A REIT is subject to a number of organizational and operational requirements, including a requirement that it currently distributes at least 90% of its REIT taxable income (subject to certain adjustments) to its stockholders. If the Company fails to qualify as a REIT in a taxable year, without the benefit of certain relief provisions, it will be subject to federal and state income tax on its taxable income at regular corporate tax rates. Even if the Company qualifies for taxation as a REIT, it may also be subject to certain federal, state, and local taxes on its income and assets, including (1) taxes on any undistributed income, (2) taxes related to its TRSs and (3) certain state or local income taxes. The Company has formed wholly owned subsidiaries to function as TRSs and filed TRS elections, together with such subsidiaries, with the Internal Revenue Service. 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. The TRSs are subject to taxation at the federal, state and local levels, as applicable, at the regular corporate tax rates. The Company accounts for applicable income taxes by utilizing the asset and liability method. As such, the Company records deferred tax assets and liabilities for the future tax consequences resulting from the difference between the carrying value of existing assets and liabilities and their respective tax basis. A valuation allowance for deferred tax assets is provided if the Company believes all or some portion of the deferred tax asset may not be realized. For the years ended December 31, 2020 and 2019, the Company recognized an income tax expense of $1.2 million and $0.1 million, respectively, within Other (expense) income, net on the Company’s Consolidated Statements of Operations. As of December 31, 2020 and 2019, the Company recorded a net deferred tax liability of $1.2 million and $0.1 million, respectively, due to its hotel investments within Accounts payable, accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. Net Loss per Share Basic net loss per share is computed by dividing net loss attributable to stockholders for the period by the weighted average number of common shares outstanding during the period. All classes of common stock are allocated net loss at the same rate per share and receive the same gross distribution per share. Diluted loss per share is computed by dividing net loss attributable to stockholders for the period by the weighted average number of common shares and common share equivalents outstanding (unless their effect is antidilutive) for the period. There are no common share equivalents outstanding that would have a dilutive effect as a result of the net loss, and accordingly, the weighted average number of common shares outstanding is identical for both basic and diluted shares for the years ended December 31, 2020 and 2019. The restricted stock grants of Class I shares held by the Company’s independent directors are not considered to be participating securities because they do not contain non-forfeitable rights to distributions. As a result, there is no impact of these restricted stock grants on basic and diluted net loss per common share until the restricted stock grants have fully vested. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses Leases—Lessor In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820)—Disclosure Framework,” which adds new disclosure requirements and modifies or eliminates existing disclosure requirements of ASC 820. This ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2019 and was adopted as of January 1, 2020. The Company has determined the application of this ASU does not materially impact the Company. In |
Investments
Investments | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Real Estate [Abstract] | ||
Investments | 3. Investments Investments in Real Estate Investments in real estate, net consisted of the following ($ in thousands): September 30, 2021 December 31, 2020 Building and building improvements $ 7,498,062 $ 3,860,297 Land and land improvements 1,379,087 689,107 Furniture, fixtures and equipment 129,093 76,808 Right of use asset - operating lease (1) 105,236 101,382 Total 9,111,478 4,727,594 Accumulated depreciation and amortization (272,694 ) (130,540 ) Investments in real estate, net $ 8,838,784 $ 4,597,054 (1) Refer to Note 13 for additional details on the Company’s leases. During the nine months ended September 30, 2021, the Company acquired interests in 101 properties, which were comprised of 60 industrial properties, 37 multifamily properties, three office properties and one other property. During the year ended December 31, 2020, the Company acquired interests in 73 properties, which were comprised of 60 multifamily properties, 10 industrial properties, two office buildings, and one medical office building. The following table provides details of the properties acquired during the nine months ended September 30, 2021 ($ in thousands): Segments Number of Number of Properties Sq. Ft. Purchase (1) Multifamily properties 8 37 10,861 units $ 2,692,598 Industrial properties 5 60 10.38 sq. ft. 1,560,968 Office properties 1 3 0.46 sq. ft. 135,242 Other properties 1 1 0.14 sq. ft. 94,593 15 101 $ 4,483,401 (1) Purchase price is inclusive of acquisition-related costs. The following table summarizes the purchase price allocation for the properties acquired during the nine months ended September 30, 2021 ($ in thousands): Amount Building and building improvements $ 3,588,114 Land and land improvements 685,437 Furniture, fixtures and equipment 49,824 In-place lease intangibles 125,655 Above-market lease intangibles 7,406 Below-market lease intangibles (12,741 ) Above-market ground lease intangibles (2,292 ) Other intangibles 12,376 Total purchase price (1) $ 4,453,779 Assumed mortgage notes (156,515 ) Non-controlling interest (3,349 ) Net purchase price $ 4,293,915 (1) Purchase price excludes acquisition-related costs of $29.6 million. The weighted-average amortization periods for the acquired in-place lease intangibles, above-market lease intangibles, below-market lease intangibles and above-market ground lease intangibles for the properties acquired during the nine months ended September 30, 2021 were four years, six years, five years and 32 years, respectively. Investments in Unconsolidated Real Estate Ventures On March 13, 2019, the Company entered into a joint venture (the “Joint Venture”) to acquire a Fort Lauderdale hotel. The Company owns a 43% interest in the Joint Venture. The Joint Venture is accounted for using the equity method of accounting and is included in Investment in unconsolidated real estate venture in the Company’s Condensed Consolidated Balance Sheets. The Company’s investment in the Joint Venture totaled $10.4 million and $11.0 million as of September 30, 2021 and December 31, 2020, respectively. The Company’s loss from its investment in the Joint Venture is presented in Loss from unconsolidated real estate ventures on the Company’s Condensed Consolidated Statements of Operations and totaled ($0.4) million and ($0.4) million for the three and nine months ended September 30, 2021 and ($0.7) million and ($0.9) million for the three and nine months ended September 30, 2020, respectively. | 3. Investments Investments in Real Estate Investments in real estate, net consisted of the following ($ in thousands): December 31, 2020 December 31, 2019 Building and building improvements $ 3,860,297 $ 1,455,204 Land and land improvements 689,107 322,520 Furniture, fixtures and equipment 76,808 46,268 Right of use asset—operating lease (1) 101,382 — Total 4,727,594 1,823,992 Accumulated depreciation and amortization (130,540 ) (25,948 ) Investments in real estate, net $ 4,597,054 $ 1,798,044 (1) Refer to Note 13 for additional details on the Company’s leases. During the year ended December 31, 2020, the Company acquired interests in 73 properties, which were comprised of 60 multifamily properties, 10 industrial properties, two office buildings, and one medical office building. During the year ended December 31, 2019, the Company acquired interests in 71 properties, which were comprised of 16 multifamily properties, eight hotel properties, 12 office buildings, 33 industrial properties and two medical office buildings. The following table provides further details of the properties acquired during the years ended December 31, 2020 and 2019 ($ in thousands): Investment Ownership Interest (1) Number of Properties Location Sector Acquisition Date Real Estate Acquisition (2) Florida Multifamily Portfolio 100% 4 Jacksonville/Naples, FL Multifamily January 2019 $ 104,049 U.S. Select Service Portfolio 100% 8 FL, CO, TN, OH, AR Hotel January 2019 232,198 Savannah Multifamily 100% 1 Savannah, GA Multifamily January 2019 36,847 Phoenix Multifamily 100% 1 Mesa, AZ Multifamily January 2019 46,779 Florida Office Portfolio 97% 11 Jacksonville, FL Office May 2019 233,287 Concord Park Apartments 100% 1 Fort Meade, MD Multifamily July 2019 88,203 Columbus Mixed Use Portfolio 96% 5 Columbus, OH Multifamily/Office September 2019 279,513 Cascades Apartments 100% 1 Charlotte, NC Multifamily October 2019 109,824 Thornton Apartments 100% 1 Alexandria, VA Multifamily October 2019 181,678 Exchange on Erwin 100% 3 Durham, NC Multifamily/Medical November 2019 112,385 Midwest Industrial Portfolio 95% 33 IL, IN, OH, WI Industrial November 2019 322,451 The Griffin 100% 1 Scottsdale, AZ Multifamily December 2019 96,634 Avida Apartments 100% 1 Salt Lake City, UT Multifamily December 2019 87,381 Southeast Affordable Housing Portfolio 100% 22 Various (3) Multifamily Various 2020 597,160 Nashville Office 100% 1 Nashville, TN Office February 2020 265,404 Barlow Building 100% 1 Chevy Chase, MD Medical Office March 2020 162,212 60 State Street 100% 1 Boston, MA Office March 2020 613,052 Highlands Portfolio 96% 3 Columbus, OH Multifamily June 2020 103,228 The Baxter Decatur 100% 1 Atlanta, GA Multifamily August 2020 82,199 Airport Logistics Park 100% 6 Nashville, TN Industrial September 2020 62,806 Mid-Atlantic Affordable Housing Portfolio 100% 28 Various (4) Multifamily October 2020 537,899 Marshfield Industrial Portfolio 100% 4 Baltimore, MD Industrial October 2020 166,800 Florida Affordable Housing Portfolio II 100% 4 Jacksonville, FL Multifamily October 2020 114,492 Acadia 100% 1 Ashburn, VA Multifamily December 2020 191,372 Kalina Way 100% 1 Salt Lake City, UT Multifamily December 2020 84,281 144 $ 4,912,134 (1) Certain of the investments made by the Company provide the seller or the other partner a profits interest based on certain internal rate of return hurdles being achieved. Such investments are consolidated by the Company and any profits interest due to the other partner is reported within non-controlling interests. (2) Purchase price is inclusive of acquisition-related costs. (3) The Southeast Affordable Housing Portfolio is primarily concentrated in Jacksonville, FL (26% of units), Orlando, FL (25%), Newport News, VA (11%), Tucson, AZ (8%), Charlotte, NC (6%) and Raleigh, NC (6%). (4) The Mid-Atlantic Affordable Portfolio is primarily concentrated in Washington, D.C. (35% of units), Norfolk/Newport, VA (22%) and Raleigh-Durham, NC (7%). The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2020 ($ in thousands): 60 State Street Southeast Affordable Housing Portfolio Mid-Atlantic Affordable Housing Portfolio Nashville Office Acadia All Other Total Building and building improvements $ 479,534 $ 459,398 $ 430,271 $ 228,180 $ 167,516 $ 626,162 $ 2,391,061 Land and land improvements 473 114,954 85,327 21,636 18,337 101,529 342,256 Furniture, fixtures and equipment — 8,269 7,816 — 2,224 9,721 28,030 Below-market ground lease (1) 95,201 — — — — — 95,201 In-place lease intangibles 47,736 8,118 7,886 18,791 2,073 29,795 114,399 Above-market lease intangibles 10,369 — — 410 — 5,910 16,689 Below-market lease intangibles (19,063 ) — — (4,917 ) — (5,217 ) (29,197 ) Total purchase price (2) $ 614,250 $ 590,739 $ 531,300 $ 264,100 $ 190,150 $ 767,900 $ 2,958,439 Non-controlling interest — — — — — (1,178 ) (1,178 ) Net purchase price $ 614,250 $ 590,739 $ 531,300 $ 264,100 $ 190,150 $ 766,722 $ 2,957,261 (1) The below-market ground lease value was recorded as a component of the Right of use asset – operating leases on the Company’s Consolidated Balance Sheet. Refer to Note 13 for additional details on the Company’s leases. (2) Purchase price does not include acquisition related costs of $22.5 million. The weighted-average amortization periods for the acquired in-place lease intangibles, above-market lease intangibles, below-market lease intangibles and below-market ground lease for the properties acquired during the year ended December 31, 2020 were six years, seven years, eight years and 47 years, respectively. The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2019 ($ in thousands): Midwest Industrial Portfolio Florida Office Portfolio Thornton Apartments U.S. Select Service Portfolio Columbus Mixed Use Portfolio All Other Total Building and building improvements $ 233,915 $ 158,206 $ 144,345 $ 164,266 $ 214,109 $ 521,414 $ 1,436,255 Land and land improvements 60,045 45,809 30,472 42,256 17,262 125,014 320,858 Furniture, fixtures and equipment — — 2,581 22,377 9,531 10,769 45,258 In-place lease intangibles 24,061 26,286 2,776 — 11,534 12,948 77,605 Above-market lease intangibles 2,839 1,544 — — 90 909 5,382 Below-market lease intangibles (2,585 ) (846 ) — — (2,549 ) (1,059 ) (7,039 ) Other intangibles 1,350 — — 101 25,023 2,219 28,693 Total purchase price (1) $ 319,625 $ 230,999 $ 180,174 $ 229,000 $ 275,000 $ 672,214 $ 1,907,012 Assumed mortgage notes (2) — — — (84,013 ) (107,731 ) (136,920 ) (328,664 ) Non-controlling interest (5,480 ) (2,880 ) — — (3,363 ) — (11,723 ) Net purchase price $ 314,145 $ 228,119 $ 180,174 $ 144,987 $ 163,906 $ 535,294 $ 1,566,625 (1) Purchase price does not include acquisition related costs of $24.2 million. (2) Includes deferred income reported as a component of Accounts payable, accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. See Note 2 for additional details on the Company’s deferred income. See Note 6 for additional details on the Company’s mortgage notes. The weighted-average amortization periods for the acquired below-market lease intangibles, in-place lease intangibles, above-market lease intangibles and other intangibles for the properties acquired during the year ended December 31, 2019 were six years, four years, five years and twelve years, respectively. The estimated future amortization on the Company’s below-market ground lease for each of the next five years and thereafter as of December 31, 2020 is as follows ($ in thousands): Year Below-market Ground Lease 2021 $ 2,036 2022 2,036 2023 2,036 2024 2,036 2025 2,036 Thereafter 83,492 Total $ 93,672 Investments in unconsolidated real estate ventures On March 13, 2019, the Company entered into a joint venture (the “Joint Venture”) to acquire a Fort Lauderdale hotel. The Company owns a 43% interest in the Joint Venture. The Joint Venture is accounted for using the equity method of accounting and is included in Investment in unconsolidated real estate venture in the Company’s Consolidated Balance Sheets. The Company’s investment in the Joint Venture totaled $11.0 million and $12.2 million as of December 31, 2020 and 2019, respectively. The Company’s (loss) income from its investment in the Joint Venture is presented in (Loss) earnings from unconsolidated real estate ventures on the Company’s Consolidated Statements of Operations and totaled ($1.5) million and $0.2 million for the years ended December 31, 2020 and 2019, respectively. |
Intangibles
Intangibles | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangibles | 4. Intangibles The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities consisted of the following ($ in thousands): September 30, December 31, Intangible assets: (1) In-place lease intangibles $ 319,651 $ 194,003 Above-market lease intangibles 29,303 22,132 Other 43,482 31,019 Total intangible assets 392,436 247,154 Accumulated amortization: In-place lease amortization (110,395 ) (60,142 ) Above-market lease amortization (6,858 ) (3,506 ) Other (5,785 ) (3,650 ) Total accumulated amortization (123,038 ) (67,298 ) Intangible assets, net $ 269,398 $ 179,856 Intangible liabilities: (2) Below-market lease intangibles $ 48,859 $ 36,190 Total intangible liabilities 48,859 36,190 Accumulated amortization: Below-market lease amortization (7,551 ) (3,534 ) Total accumulated amortization (7,551 ) (3,534 ) Intangible liabilities, net $ 41,308 $ 32,656 (1) Included in Other assets on the Company’s Condensed Consolidated Balance Sheets. (2) Included in Other liabilities on the Company’s Condensed Consolidated Balance Sheets. The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter as of September 30, 2021 is as follows ($ in thousands): In-place Lease Intangibles Above-market Lease Intangibles Other Below-market Lease Intangibles 2021(remaining) $ 22,387 $ 1,264 $ 820 $ (1,541 ) 2022 52,405 4,580 3,569 (6,551 ) 2023 34,753 4,080 3,484 (6,011 ) 2024 26,027 2,916 3,470 (5,005 ) 2025 21,120 2,279 3,338 (4,115 ) Thereafter 52,564 7,326 23,016 (18,085 ) $ 209,256 $ 22,445 $ 37,697 $ (41,308 ) | 4. Intangibles The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities consisted of the following ($ in thousands): December 31, 2020 December 31, 2019 Intangible assets: (1) In-place lease intangibles $ 194,003 $ 77,311 Above-market lease intangibles 22,132 5,387 Other 31,019 30,801 Total intangible assets 247,154 113,499 Accumulated amortization: In-place lease amortization (60,142 ) (12,341 ) Above-market lease intangibles (3,506 ) (318 ) Other (3,650 ) (635 ) Total accumulated amortization (67,298 ) (13,294 ) Intangible assets, net $ 179,856 $ 100,205 Intangible liabilities: (2) Below-market lease intangibles $ 36,190 $ 7,032 Accumulated amortization (3,534 ) (331 ) Intangible liabilities, net $ 32,656 $ 6,701 (1) Included in Other assets on the Company’s Consolidated Balance Sheets. (2) Included in Accounts payable, accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter as of December 31, 2020 is as follows ($ in thousands): In-place Lease Intangibles Above-market Lease Intangibles Other Below-market Lease Intangibles 2021 $ 39,432 $ 3,782 $ 2,747 $ (3,944 ) 2022 22,828 3,301 2,738 (3,662 ) 2023 17,289 2,868 2,653 (3,354 ) 2024 12,885 1,883 2,639 (3,023 ) 2025 10,138 1,492 2,507 (2,740 ) Thereafter 31,289 5,300 14,085 (15,933 ) $ 133,861 $ 18,626 $ 27,369 $ (32,656 ) |
Investments in Real Estate-Rela
Investments in Real Estate-Related Securities | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of Investments [Abstract] | ||
Investments in Real Estate Debt | 5. Investments in Real Estate Debt The following tables detail the Company’s investments in real estate debt as of September 30, 2021 and December 31, 2020 ($ in thousands): September 30, 2021 Type of Security/Loan Number of Positions Weighted Average Coupon Weighted Average Maturity Date (1) Cost Basis Fair Value RMBS 51 3.12 % November 7, 2045 $ 173,051 $ 177,472 CMBS—floating 4 L + 3.46 % July 15, 2038 296,928 298,661 CMBS—fixed 1 6.26 % July 25, 2039 2,700 2,536 Total real estate securities 56 3.33 % March 15, 2041 472,679 478,669 Term loan (2) 1 L + 5.35 % February 26, 2026 504,540 485,406 Total investments in real estate debt 57 4.39 % June 2, 2033 $ 977,219 $ 964,075 December 31, 2020 Type of Security Number of Positions Weighted Average Coupon Weighted Average Maturity Date (1) Cost Basis Fair Value RMBS 55 3.22 % March 22, 2047 $ 213,863 $ 215,358 CMBS 1 6.26 % July 25, 2039 3,066 2,867 Total investments in real estate debt 56 $ 216,929 $ 218,225 (1) Weighted average maturity date is based on the fully extended maturity date of the underlying collateral. (2) On February 26, 2021, the Company provided financing in the form of a term loan to an unaffiliated entity in connection with its acquisition of a premier United Kingdom holiday company. The loan is in the amount of £360 million and has an initial term of five years, with a two-year extension option. The majority of the Company’s investments in real estate securities consist of non-agency RMBS and CMBS. The Company’s investments in real estate debt include CMBS collateralized by properties owned by Starwood-advised investment vehicles. The following table details the Company’s affiliate investments in real estate debt ($ in thousands): Fair Value September 30, 2021 December 31, 2020 CMBS $ 298,661 $ — Total $ 298,661 $ — Such CMBS were purchased in fully or over-subscribed offerings. Each investment in such CMBS by the Company represented a minority participation in any individual tranche. The Company acquired its minority participation interest from third-party investment banks on market terms negotiated by the majority third-party investors. During the three and nine months ended September 30, 2021, the Company recorded net unrealized losses on its investments in real estate debt of ($4.6) million and ($6.2) million, respectively. During the three and nine months ended September 30, 2020, the Company recorded net unrealized gains on its investments in real estate debt of $9.2 million and net unrealized losses of ($4.7) million, respectively. During the three and nine months ended September 30, 2020, the Company recorded realized losses on its investments in real estate debt of ($1.2) million and ($5.8) million, respectively. Such amounts are recorded as a component of Income (loss) from investments in real estate debt on the Company’s Condensed Consolidated Statements of Operations. | 5. Investments in Real Estate-Related Securities The following tables detail the Company’s investments in real estate-related securities as of December 31, 2020 and 2019 ($ in thousands): December 31, 2020 Instrument Number of Positions Weighted Average Coupon (1) Weighted Average Maturity Date (2) Cost Basis Fair Value RMBS 55 3.22 % March 22, 2047 $ 213,863 $ 215,358 CMBS 1 6.26 % July 25, 2039 3,066 2,867 56 $ 216,929 $ 218,225 December 31, 2019 Instrument Number of Positions Weighted Average Coupon (1) Weighted Average Maturity Date (2) Cost Basis Fair Value RMBS 59 3.76 % October 17, 2040 $ 235,405 $ 236,844 CLO 12 6.12 % May 11, 2031 29,302 29,236 CMBS 4 3.73 % March 13, 2037 11,473 11,571 75 $ 276,180 $ 277,651 (1) As of December 31, 2020, the Company’s RMBS investments had floating rate coupons ranging from 0.00% to 7.95% and its CMBS investment had a floating rate coupon of 6.26%. (2) Weighted average maturity date is based on the fully extended maturity date of the underlying collateral. The majority of the Company’s real estate-related securities portfolio consist of non-agency residential mortgage-backed securities (“RMBS”). The Company also has an investment in commercial mortgage-backed securities (“CMBS”). We owned 12 positions in collateralized loan obligations (“CLO”) as of December 31, 2019. During the year ended December 31, 2020, the Company recorded net unrealized losses and realized losses on its real estate-related securities portfolio of $0.2 million and $5.8 million, respectively. During the year ended December 31, 2019, the Company recorded net unrealized gains and realized gains on its real estate-related securities portfolio of $1.5 million and $0.6 million, respectively. Such amounts are recorded as a component of Income from real estate-related securities, net on the Company’s Consolidated Statements of Operations. |
Mortgage Notes and Revolving Cr
Mortgage Notes and Revolving Credit Facility | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Mortgage Notes and Revolving Credit Facility | 6. Mortgage Notes and Revolving Credit Facility The following table is a summary of the mortgage notes and revolving credit facility secured by the Company’s properties as of September 30, 2021 and December 31, 2020 ($ in thousands): Principal Balance Outstanding (3) Indebtedness Weighted Average Interest Rate (1) Weighted Average Maturity Date (2) Maximum Facility Size September 30, 2021 December 31, 2020 Fixed rate loans Fixed rate mortgages 3.08 % 9/7/2030 N/A $ 2,693,436 $ 2,236,290 Total fixed rate loans 2,693,436 2,236,290 Variable rate loans Floating rate mortgages L + 1.84 % 7/26/2024 N/A 3,092,387 886,594 Variable rate revolving credit facility (4) L + 2.00 % 10/21/2021 $ 200,000 — 172,800 Total variable rate loans 3,092,387 1,059,394 Total loans secured by the Company’s properties 5,785,823 3,295,684 Deferred financing costs, net (39,297 ) (17,208 ) Premium on assumed debt, net 612 286 Mortgage notes and revolving credit facility, net $ 5,747,138 $ 3,278,762 (1) The term “L” refers to the one-month LIBOR. As of September 30, 2021, one-month LIBOR was equal to 0.08%. (2) For loans where the Company, at its own discretion, has extension options, the maximum maturity date has been assumed. (3) The majority of the Company’s mortgages contain yield or spread maintenance provisions. (4) The Company’s revolving credit facility can be drawn upon to fund the acquisition of future real estate investments. During October 2021, the Company extended this facility to October 21, 2022 The following table presents the future principal payments under the Company’s mortgage notes and revolving credit facility as of September 30, 2021 ($ in thousands): Year Amount 2021(remaining) $ 914 2022 51,689 2023 1,651,164 2024 483,255 2025 648,982 Thereafter 2,949,819 Total $ 5,785,823 The Company’s mortgage notes and revolving credit facility may contain customary events of default and covenants, including limitations on liens and indebtedness. The Company is not aware of any instance of noncompliance with financial covenants as of September 30, 2021. | 6. Mortgage Notes and Revolving Credit Facility The following table is a summary of the mortgage notes and revolving credit facility secured by the Company’s properties as of December 31, 2020 and 2019 ($ in thousands): Weighted Average Interest Rate (1) Weighted Average Maturity Date (2) Maximum Facility Size Principal Balance Outstanding (3) Indebtedness December 31, 2020 December 31, 2019 Fixed rate loans Fixed rate mortgages 3.11 % 2/3/2030 N/A $ 2,236,290 $ 1,004,423 Total fixed rate loans 2,236,290 1,004,423 Variable rate loans Floating rate mortgages L + 1.81 % 3/30/2025 N/A 886,594 240,599 Variable rate revolving credit facility (4) L + 2.00 % 10/21/2021 $ 200,000 172,800 — Total variable rate loans 1,059,394 240,599 Total loans secured by the Company’s properties 3,295,684 1,245,022 Deferred financing costs, net (17,208 ) (7,136 ) Discount on assumed debt, net 286 216 Mortgage notes and revolving credit facility, net $ 3,278,762 $ 1,238,102 (1) The term “L” refers to the one-month LIBOR. As of December 31, 2020, one-month LIBOR was equal to 0.14%. (2) For loans where the Company, at its own discretion, has extension options, the maximum maturity date has been assumed. (3) The majority of the Company’s mortgages contain yield or spread maintenance provisions. (4) The Company’s revolving credit facility can be drawn upon to fund the acquisition of future real estate investments. The following table presents the future principal payments under the Company’s mortgage notes and revolving credit facility as of December 31, 2020 ($ in thousands): Year Amount 2021 $ 175,901 2022 51,183 2023 3,931 2024 215,201 2025 647,091 Thereafter 2,202,377 Total $ 3,295,684 Interest paid on the Company’s mortgage notes and revolving credit facility for the years ended December 31, 2020 and 2019 was $67.3 million and $17.4 million, respectively. The Company’s mortgage notes and revolving credit facility may contain customary events of default and covenants, including limitations on liens and indebtedness and maintenance of certain financial ratios. The Company is not aware of any instance of noncompliance with financial covenants as of December 31, 2020. |
Secured Financings On Investmen
Secured Financings On Investments In Real Estate Debt | 9 Months Ended |
Sep. 30, 2021 | |
Secured Financings On Investments In Real Estate Debt [Abstract] | |
Secured Financings on Investments in Real Estate Debt | 7. Secured Financings on Investments in Real Estate Debt Secured financings on investments in real estate debt are treated as collateralized financing transactions and are carried at their contractual amounts, including accrued interest, as specified in the respective agreements. Although structured as a sale and repurchase obligation, a secured financing on investments in real estate debt operates as a financing under which securities are pledged as collateral to secure a short-term loan equal in value to a specified percentage of the market value of the pledged collateral. While used as collateral, the Company retains beneficial ownership of the pledged collateral, including the right to distributions. At the maturity of a secured financing on investments in real estate debt, the Company is required to repay the loan and concurrently receive the pledged collateral from the lender or, with the consent of the lender, renew such agreement at the then-prevailing financing rate. Interest rates on these borrowings are determined based on prevailing rates corresponding to the terms of the borrowings, and interest is paid at the termination of the borrowing at which time the Company may enter into a new borrowing arrangement at prevailing market rates with the same counterparty or repay that counterparty and negotiate financing with a different counterparty. The fair value of financial instruments pledged as collateral on the Company’s secured financings on investments in real estate debt disclosed in the tables below represents the Company’s fair value of such instruments, which may differ from the fair value assigned to the collateral by its counterparties. During February 2021, the Company entered into a repurchase agreement with Barclays Bank PLC in order to finance its term loan investment (the “Barclays RA”). The Barclays RA interest rate is equal to the three-month U.S. dollar-denominated LIBOR plus a spread. For financial statement purposes, the Company does not offset its secured financings on investments in real estate debt and securities lending transactions because the conditions for netting as specified by GAAP are not met. Although not offset on the Company’s Condensed Consolidated Balance Sheets, these transactions are summarized in the following tables ($ in thousands): September 30, 2021 Indebtedness Maturity Date Coupon Collateral Assets (1) Outstanding Balance Barclays RA 2/26/2026 L+2.50 % $ 485,406 $ 134,835 $ 485,406 $ 134,835 December 31, 2020 Indebtedness Weighted Average Maturity Date Weighted Average Coupon Collateral Assets (1) Outstanding Balance RMBS 3/17/2021 1.93 % $ 155,538 $ 105,804 CMBS 1/6/2021 2.10 % 2,867 2,450 $ 158,405 $ 108,254 (1) Represents the fair value of the Company’s investments in real estate debt. |
Repurchase Agreements
Repurchase Agreements | 12 Months Ended |
Dec. 31, 2020 | |
Repurchase Agreements [Abstract] | |
Repurchase Agreements | 7. Repurchase Agreements Repurchase agreements are treated as collateralized financing transactions and are carried at their contractual amounts, including accrued interest, as specified in the respective agreements. Although structured as a sale and repurchase obligation, a repurchase agreement operates as a financing under which securities are pledged as collateral to secure a short-term loan equal in value to a specified percentage of the market value of the pledged collateral. While used as collateral, the Company retains beneficial ownership of the pledged collateral, including the right to distributions. At the maturity of a repurchase agreement, the Company is required to repay the loan and concurrently receive the pledged collateral from the lender or, with the consent of the lender, renew such agreement at the then prevailing financing rate. The Company’s repurchase agreements typically have terms of one month to six months at inception. The carrying amount of the Company’s repurchase agreements approximates fair value due to their short-term maturities and floating rate coupons. Interest rates on these borrowings are determined based on prevailing rates corresponding to the terms of the borrowings, and interest is paid at the termination of the borrowing at which time the Company may enter into a new borrowing arrangement at prevailing market rates with the same counterparty or repay that counterparty and negotiate financing with a different counterparty. The fair value of financial instruments pledged as collateral on the Company’s repurchase agreements disclosed in the tables below represent the Company’s fair value of such instruments, which may differ from the fair value assigned to the collateral by its counterparties. For financial statement purposes, the Company does not offset its repurchase agreements and securities lending transactions because the conditions for netting as specified by GAAP are not met. Although not offset on the Company’s Consolidated Balance Sheets, these transactions are included in the following tables ($ in thousands): Weighted Average Maturity Date Weighted Average Coupon December 31, 2020 Security Interest Collateral Assets (1) Outstanding Balance RMBS 3/17/2021 1.93 % $ 155,538 $ 105,804 CMBS 1/6/2021 2.10 % 2,867 2,450 $ 158,405 $ 108,254 Weighted Average Coupon December 31, 2019 Security Interest Collateral Assets (1) Outstanding Balance RMBS 2.62 % $ 89,784 $ 74,876 CLO 4.71 % 7,962 6,159 $ 97,746 $ 81,035 (1) Represents the fair value of the Company’s investments in real estate-related securities. Interest paid on the Company’s repurchase agreements for the years ended December 31, 2020 and 2019 was $3.4 million and $3.1 million, respectively. |
Unsecured Revolving Credit Faci
Unsecured Revolving Credit Facility | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Unsecured Revolving Credit Facility | 8. Unsecured Revolving Credit Facility On December 16, 2020, the Company entered into an unsecured revolving credit facility (the “Line of Credit”) for $100 million with multiple banks. During July 2021 additional banks were added under the Line of Credit and the total borrowing capacity was increased to $450 million. The Line of Credit expires on December 16, 2023, at which time the Company may request additional one-year extensions thereafter. Interest under the Line of Credit | 8. Unsecured Revolving Credit Facility On December 16, 2020, the Company entered into an unsecured line of credit (the “Line of Credit”) for $100 million with multiple banks. The line of credit expires on December 16, 2023 and commencing on the third anniversary of the closing date, may request additional one year extensions thereafter. Interest under the line of credit is determined based on one-month U.S. dollar-denominated LIBOR plus 3.0%. As of December 31, 2020, the capacity of the unsecured line of credit was $100 million. There were no outstanding borrowings on the line of credit as of December 31, 2020. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Other Assets And Other Liabilities [Abstract] | ||
Other Assets and Other Liabilities | 9. Other Assets and Other Liabilities The following table summarizes the components of Other assets ($ in thousands): September 30, 2021 December 31, 2020 Intangible assets, net $ 269,398 $ 179,856 Acquisition deposits 208,826 7 Equity securities 173,732 — Derivative instruments 62,344 1,410 Receivables 39,688 23,692 Prepaid expenses 10,716 4,047 Interest receivable 3,974 548 Deferred financing costs, net 3,772 1,268 Other 3,591 307 Total $ 776,041 $ 211,135 The following table summarizes the components of Other liabilities ($ in thousands): September 30, 2021 December 31, 2020 Accounts payable and accrued expenses $ 49,699 $ 19,651 Real estate taxes payable 49,618 14,842 Intangible liabilities, net 41,308 32,656 Distributions payable 24,756 8,682 Tenant security deposits 21,095 9,842 Right of use liability—operating lease 12,514 6,390 Accrued interest expense 10,091 7,309 Deferred tax liability 9,764 1,229 Deferred income 7,323 11,111 Derivative instruments 952 5,167 Other 3,088 193 Total $ 230,208 $ 117,072 | 9. Other Assets and Other Liabilities The following table summarizes the components of other assets ($ in thousands): December 31, 2020 December 31, 2019 Intangible assets, net $ 179,856 $ 100,205 Receivables 23,692 6,735 Prepaid expenses 4,047 1,456 Derivative instruments 1,410 203 Deferred financing costs, net 1,268 674 Interest receivable 548 1,028 Acquisition deposits 7 3,050 Other 307 146 Total $ 211,135 $ 113,497 The following table summarizes the components of accounts payable, accrued expenses, and other liabilities ($ in thousands): December 31, 2020 December 31, 2019 Intangible liabilities, net $ 32,656 $ 6,701 Accounts payable and accrued expenses 19,651 10,188 Real estate taxes payable 14,842 6,513 Deferred income 11,111 6,707 Tenant security deposits 9,842 3,547 Distributions payable 8,682 4,216 Accrued interest expense 7,309 1,993 Right of use liability— operating lease 6,390 — Derivative instruments 5,167 — Other 1,422 8,114 Total $ 117,072 $ 47,979 |
Equity and Redeemable Non-contr
Equity and Redeemable Non-controlling Interest | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Equity and Redeemable Non-controlling Interest | 10. Equity and Redeemable Non-controlling Interest Authorized Capital The Company is authorized to issue preferred stock and four classes of common stock consisting of Class T shares, Class S shares, Class D shares, and Class I shares. The Company’s board of directors has the ability to establish the preferences and rights of each class or series of preferred stock, without stockholder approval, and as such, it may afford the holders of any series or class of preferred stock preferences, powers and rights senior to the rights of holders of common stock. The differences among the common share classes relate to upfront selling commissions, dealer manager fees and ongoing stockholder servicing fees. See Note 2 for a further description of such items. Other than the differences in upfront selling commissions, dealer manager fees and ongoing stockholder servicing fees, each class of common stock is subject to the same economic and voting rights. Charter Amendment On May 10, 2021, the Company amended its charter to increase the number of shares of stock that the Company has authority to issue to 3,100,000,000 shares, consisting of 3,000,000,000 shares of common stock, $0.01 par value per share, 500,000,000 of which are classified as Class T common stock, 1,000,000,000 of which are classified as Class S common stock, 500,000,000 of which are classified as Class D common stock and 1,000,000,000 of which are classified as Class I common stock, and 100,000,000 shares of preferred stock, $0.01 par value per share. Prior to the amendment, the Company had authority to issue 1,100,000,000 shares, consisting of 1,000,000,000 shares of common stock, $0.01 par value per share, 250,000,000 of which were classified as Class T common stock, 250,000,000 of which were classified as Class S common stock, 250,000,000 of which were classified as Class D common stock and 250,000,000 of which were classified as Class I common stock, and 100,000,000 shares of preferred stock, $0.01 par value per share. As of September 30, 2021, the Company had the authority to issue 3,100,000,000 shares of capital stock, consisting of the following: Classification Number of Shares Par Value Preferred Stock 100,000,000 $ 0.01 Class T Shares 500,000,000 $ 0.01 Class S Shares 1,000,000,000 $ 0.01 Class D Shares 500,000,000 $ 0.01 Class I Shares 1,000,000,000 $ 0.01 Total 3,100,000,000 Common Stock The following table details the movement in the Company’s outstanding shares of common stock: Nine months ended September 30, 2021 Class T Class S Class D Class I Total December 31, 2020 2,463,182 46,431,661 2,847,097 39,152,913 90,894,853 Common stock shares issued 1,523,077 74,589,078 15,921,954 75,605,408 167,639,517 Distribution reinvestment plan shares issued 60,801 1,442,493 109,861 959,717 2,572,872 Common stock shares repurchased (37,422 ) (819,843 ) (35,754 ) (925,540 ) (1,818,559 ) Independent directors’ restricted stock grant (1) — — — 14,829 14,829 September 30, 2021 4,009,638 121,643,389 18,843,158 114,807,327 259,303,512 (1) The independent directors’ restricted stock grant represents $0.3 million of the annual compensation paid to the independent directors for the period ended September 30, 2021. Each grant is amortized over the one-year service period of such grant. The shares vested in August 2021. Share Repurchases For the three months ended September 30, 2021, the Company repurchased 475,386 shares of common stock representing a total of $10.8 million. For the nine months ended September 30, 2021, the Company repurchased 1,818,559 shares of common stock representing a total of $40.0 million. The Company had no unfulfilled repurchase requests during the nine months ended September 30, 2021. 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. Each class of common stock receives the same gross distribution per share. The net distribution varies for each class based on the applicable stockholder servicing fee, which is deducted from the monthly distribution per share and paid directly to the applicable distributor. The following table details the aggregate distributions declared for each applicable class of common stock for the nine months ended September 30, 2021: Class T Class S Class D Class I Gross distributions declared per share of common stock $ 0.9315 $ 0.9315 $ 0.9315 $ 0.9315 Stockholder servicing fee per share of common stock (0.1413 ) (0.1418 ) (0.0416 ) — Net distributions declared per share of common stock $ 0.7902 $ 0.7897 $ 0.8899 $ 0.9315 Redeemable Non-controlling Interest In connection with its performance participation interest, the Special Limited Partner holds Class I units in the Operating Partnership. See Note 11 for further details of the Special Limited Partner’s performance participation interest. Because the Special Limited Partner has the ability to redeem its Class I units for cash, at its election, the Company has classified these Class I units as Redeemable non-controlling interest in mezzanine equity on the Company’s Condensed Consolidated Balance Sheets. The Redeemable non-controlling interest is recorded at the greater of the carrying amount, adjusted for its share of the allocation of income or loss and dividends, or the redemption value, which is equivalent to fair value, of such units at the end of each measurement period. As the redemption value was greater than the adjusted carrying value at September 30, 2021, the Company recorded an allocation adjustment of $5.6 million between Additional paid-in capital and Redeemable non-controlling interest. The following table summarizes the Redeemable non-controlling interest activity for the nine months ended September 30, 2021 and 2020 ($ in thousands): September 30, 2021 September 30, 2020 Balance at the beginning of the year $ 10,409 $ — Settlement of performance participation allocation 15,061 10,366 GAAP income allocation (1,235 ) (458 ) Distributions (1,095 ) (448 ) Fair value allocation 5,556 792 Ending balance $ 28,696 $ 10,252 | 10. Equity and Redeemable Non-controlling Interest Authorized Capital The Company is authorized to issue preferred stock and four classes of common stock consisting of Class T shares, Class S shares, Class D shares, and Class I shares. The Company’s board of directors has the ability to establish the preferences and rights of each class or series of preferred stock, without stockholder approval, and as such, it may afford the holders of any series or class of preferred stock preferences, powers and rights senior to the rights of holders of common stock. The differences among the common share classes relate to upfront selling commissions, dealer manager fees and ongoing stockholder servicing fees. See Note 2 for a further description of such items. Other than the differences in upfront selling commissions, dealer manager fees and ongoing stockholder servicing fees, each class of common stock is subject to the same economic and voting rights. As of December 31, 2020, the Company had the authority to issue 1,100,000,000 shares of capital stock, consisting of the following: Classification Number of Shares Par Value Preferred Stock 100,000,000 $ 0.01 Class T Shares 250,000,000 $ 0.01 Class S Shares 250,000,000 $ 0.01 Class D Shares 250,000,000 $ 0.01 Class I Shares 250,000,000 $ 0.01 Total 1,100,000,000 Common Stock The following table details the movement in the Company’s outstanding shares of common stock: Class T Class S Class D Class I Total January 1, 2018 — — — 10,000 10,000 Common stock shares issued 483 6,610,280 46,075 1,532,000 8,188,838 December 31, 2018 483 6,610,280 46,075 1,542,000 8,198,838 Common stock shares issued 1,401,818 19,176,803 1,584,566 14,448,819 36,612,006 Distribution reinvestment plan shares issued 10,262 383,218 22,453 122,455 538,388 Common stock shares repurchased — (5,507 ) — (4,843 ) (10,350 ) Independent directors’ restricted stock (1) — — — 5,853 5,853 December 31, 2019 1,412,563 26,164,794 1,653,094 16,114,284 45,344,735 Common stock shares issued 1,137,269 20,138,235 1,190,809 23,197,333 45,663,646 Distribution reinvestment plan shares issued 56,484 1,188,342 87,505 611,538 1,943,869 Common stock shares repurchased (143,134 ) (1,059,710 ) (84,311 ) (774,476 ) (2,061,631 ) Independent directors’ restricted stock (1) — — — 4,234 4,234 December 31, 2020 2,463,182 46,431,661 2,847,097 39,152,913 90,894,853 (1) The independent directors’ restricted stock grant represents an aggregate $0.1 million and $0.1 million of the annual compensation paid to the independent directors for the years ended December 31, 2020 and 2019, respectively. Each grant is amortized over the one-year service period of such grant. 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. Each class of common stock receives the same gross distribution per share. The net distribution varies for each class based on the applicable stockholder servicing fee, which is deducted from the monthly distribution per share and paid directly to the applicable distributor. The following table details the aggregate distributions declared for each applicable class of common stock: Year Ended December 31, 2020 Class T Class S Class D Class I Aggregate gross distributions declared per share of common stock $ 1.2420 $ 1.2420 $ 1.2420 $ 1.2420 Stockholder servicing fee per share of common stock (0.1808 ) (0.1821 ) (0.0533 ) — Net distributions declared per share of common stock $ 1.0612 $ 1.0599 $ 1.1887 $ 1.2420 Year Ended December 31, 2019 Class T Class S Class D Class I Aggregate gross distributions declared per share of common stock $ 1.0905 $ 1.0905 $ 1.0905 $ 1.0905 Stockholder servicing fee per share of common stock (0.1608 ) (0.1787 ) (0.0503 ) — Net distributions declared per share of common stock $ 0.9297 $ 0.9118 $ 1.0402 $ 1.0905 The Company did not declare distributions during the year ended December 31, 2018. Redeemable Non-controlling Interest In connection with its performance participation interest, the Special Limited Partner holds Class I units in the Operating Partnership. See Note 11 for further details of the Special Limited Partner’s performance participation interest. Because the Special Limited Partner has the ability to redeem its Class I units for cash, at its election, the Company has classified these Class I units as Redeemable non-controlling interest in mezzanine equity on the Company’s Consolidated Balance Sheets. The Redeemable non-controlling interest is recorded at the greater of the carrying amount, adjusted for its share of the allocation of income or loss and dividends, or the redemption value, which is equivalent to fair value, of such units at the end of each measurement period. As the redemption value was greater than the adjusted carrying value at December 31, 2020, the Company recorded an allocation adjustment of $1.3 million between Additional paid-in capital and Redeemable non-controlling interest. The following table summarizes the Redeemable non-controlling interest activity for the year ended December 31, 2020 ($ in thousands): December 31, 2019 $ — Settlement of 2019 performance participation allocation 10,366 GAAP income (loss) allocation (642 ) Distributions (597 ) Fair value allocation 1,282 December 31, 2020 $ 10,409 Share Repurchase Plan 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 (excluding any early repurchase deduction) is limited to 2% of the aggregate NAV per month (measured using the aggregate NAV as of the end of the immediately preceding month) and 5% of the aggregate NAV per calendar quarter (measured using the aggregate NAV as of the end of the immediately preceding quarter). Shares are 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 are 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 may elect not to repurchase some or all of the shares submitted for repurchase in a given period. Further, the Company may make exceptions to modify, suspend or terminate the share repurchase plan. For the years ended December 31, 2020 and 2019, the Company repurchased 2,061,631 and 10,350 shares of common stock representing a total of $43.7 million and $0.2 million, respectively. The Company had no unfulfilled repurchase requests during the years ended December 31, 2020 and 2019. Distribution Reinvestment Plan The Company has adopted a distribution reinvestment plan whereby stockholders (other than clients of participating broker dealers and residents of certain states that do not permit automatic enrollment in the distribution reinvestment plan) will have their cash distributions automatically reinvested in additional shares of common stock unless they elect to receive their distributions in cash. Stockholders who (i) reside in a state or jurisdiction that requires affirmative enrollment in the distribution reinvestment plan or (ii) are clients of a participating broker-dealer that requires affirmative enrollment in the distribution reinvestment plan will automatically 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 before upfront selling commissions and dealer manager fees 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 will 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. |
Related Party Transactions
Related Party Transactions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions | 11. Related Party Transactions Acquisition of Investments On March 20, 2020, the Company acquired a 75% interest in 60 State Street, a 911,000-square-foot office building in Boston, Massachusetts through a joint venture, between the Company and the Sponsor. The Sponsor purchased a 25% interest (the “60 State Street Membership Interests”) alongside the Company with the intent of subsequently selling it to an unaffiliated buyer. The Sponsor subsequently exercised its right to put the 60 State Street Membership Interests to the Company. During the second quarter of 2020, the Company acquired the 60 State Street Membership Interests in three transactions at a cost of $59.0 million plus interest equal to one-month LIBOR +2.40% or $0.3 million. As a result of these transactions, the Company wholly owns 60 State Street. On October 29, 2020, the Company borrowed $22.0 million from the Sponsor to fund an acquisition. The borrowing was repaid on November 3, 2020 plus interest equal to one-month LIBOR plus 3.00% Management Fee and Performance Participation Allocation The Advisor is entitled to an annual management fee equal to 1.25% of the Company’s NAV, payable monthly as compensation for the services it provides to the Company. The management fee can be paid, at the Advisor’s election, in cash, shares of common stock, or Operating Partnership units. During the three and nine months ended September 30, 2021, the Company incurred management fees of $17.7 million and $36.4 million, respectively. During the three and nine months ended September 30, 2020, the Company incurred management fees of $5.0 million and $13.6 million, respectively. To date, the Advisor has elected to receive the management fee in shares of the Company’s common stock. For the nine months ended September 30, 2021, the Company issued 1,313,346 unregistered Class I shares to the Advisor as payment for the management fee and also had a payable of $6.8 million related to the management fee as of September 30, 2021, which is included in Due to affiliates on the Company’s Condensed Consolidated Balance Sheets. During October 2021, the Advisor was issued 277,913 unregistered Class I shares as payment for the $6.8 million management fee accrued as of September 30, 2021. The shares issued to the Advisor for payment of the management fee were issued at the applicable NAV per share at the end of each month for which the fee was earned. Additionally, the Special Limited Partner, an affiliate of the Advisor, holds a performance participation interest in the Operating Partnership that entitles it to receive an allocation of the Operating Partnership’s total return to its capital account. Total return is defined as distributions paid or accrued plus the change in NAV. Under the Operating Partnership agreement, the annual total return will be allocated solely to the Special Limited Partner after the other unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual total return. The annual distribution of the performance participation interest will be paid in cash or Class I units of the Operating Partnership, at the election of the Special Limited Partner. During the three and nine months ended September 30, 2021, the Company recognized $79.6 million and $111.9 million, respectively, of performance participation allocation in the Company’s Condensed Consolidated Statements of Operations. During the three and nine months ended September 30, 2020, the Company recognized $0 and $46,000, respectively, of performance participation allocation in the Company’s Condensed Consolidated Statements of Operations. The 2020 performance participation allocation became payable on December 31, 2020 and, in January 2021, the Operating Partnership issued 695,320 Class I units in the Operating Partnership to the Special Limited Partner as payment for the 2020 performance participation allocation. Such Class I units were issued at the NAV per unit as of December 31, 2020. Due to Affiliates The following table details the components of Due to affiliates ($ in thousands): September 30, 2021 December 31, 2020 Accrued stockholder servicing fee $ 227,430 $ 73,170 Performance participation allocation 111,934 15,061 Advanced organization and offering costs 4,735 5,830 Accrued management fee 6,782 2,103 Accrued affiliate service provider expenses 610 — Advanced operating expenses 348 207 Total $ 351,839 $ 96,371 Accrued stockholder servicing fee As described in Note 2, the Company accrues the full amount of the future stockholder servicing fees payable to the Dealer Manager for Class T, Class S, and Class D shares up to the 8.75% limit at the time such shares are sold. As of September 30, 2021 and December 31, 2020, the Company has accrued $227.4 million and $73.2 million, respectively, of stockholder servicing fees payable to the Dealer Manager related to the Class T, Class S shares and Class D shares sold. The Dealer Manager has entered into agreements with the participating broker dealers distributing the Company’s shares in the public offerings, which provide, among other things, for the re-allowance of the full amount of the selling commissions and dealer manager fee and all or a portion of the stockholder servicing fees received by the Dealer Manager to such participating broker dealers. Advanced organization and offering costs The Advisor and its affiliates incurred $7.3 million of organization and offering costs in connection with the Initial Public Offering (excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) on behalf of the Company through December 21, 2019. Such amount is being reimbursed to the Advisor ratably over 60 months, which commenced in January 2020. Advanced operating expenses As of September 30, 2021 and December 31, 2020, the Advisor had advanced approximately $0.1 million and $0.1 million, respectively, of expenses on the Company’s behalf for general corporate expenses provided by unaffiliated third parties. Such amounts (incurred prior to 2019) are being reimbursed to the Advisor ratably over a 60 month period, which commenced in January 2020. For the nine months ended September 30, 2021 and the year ended December 31, 2020, the Advisor had incurred approximately $3.8 million and $2.7 million, respectively, of expenses on the Company’s behalf for general corporate expenses. Such amounts are being reimbursed to the Advisor one month in arrears. For the nine months ended September 30, 2021 and the year ended December 31, 2020, the Advisor had advanced approximately $0.2 million and $0.1 million, respectively, of expenses on the Company’s behalf for general corporate expenses. Accrued affiliate service provider expenses The Company has engaged and expects to continue to engage Highmark Residential (formerly Milestone Management), a portfolio company owned by an affiliate of the Sponsor, to provide property management services (including leasing, revenue management, accounting, legal and contract management, expense management, and capital expenditure projects and transaction support services) for a portion of the Company’s multifamily properties. The cost for such services is a percentage of the gross receipts and project costs respectively (which will be reviewed periodically and adjusted if appropriate), plus actual costs allocated for transaction support services. During the three and nine months ended September 30, 2021, the Company has incurred approximately $1.8 million and $4.6 million, respectively, of expenses due to Highmark Residential services in connection with its investments and such amount is included in Rental property operating expenses on the Company’s Condensed Consolidated Statements of Operations. During the three and nine months ended September 30, 2020, the Company incurred approximately $0.7 million and $1.9 million, respectively, of expenses due to Highmark Residential services in connection with its investments and such amount is included in Rental property operating expenses on the Company’s Condensed Consolidated Statements of Operations. The Company has engaged Rinaldi, Finkelstein & Franklin L.L.C. (“RFF”), a law firm owned and controlled by Ellis F. Rinaldi, Co-General Counsel and Senior Managing Director of the Sponsor and certain of its affiliates, to provide corporate legal support services to the Company. During the three and nine months ended September 30, 2021, the amounts incurred for services provided by RFF were $0.1 million and $0.3 million, respectively. During the three and nine months ended September 30, 2020, the amounts incurred for services provided by RFF were $0.1 million and $0.2 million, respectively. The Company has engaged Essex Title, LLC (“Essex”), a title agent company majority owned by the Sponsor. Essex acts as an agent for one or more underwriters in issuing title policies and/or providing support services in connection with investments by the Company, Starwood Capital and its affiliates and third parties. Essex focuses on transactions in rate-regulated states where the cost of title insurance is non-negotiable. Essex will not perform services in non-regulated states for the Company, unless (i) in the context of a portfolio transaction that includes properties in rate-regulated states, (ii) as part of a syndicate of title insurance companies where the rate is negotiated by other insurers or their agents, (iii) when a third party is paying all or a material portion of the premium or (iv) when providing only support services to the underwriter. Essex earns fees, which would have otherwise been paid to third parties, by providing title agency services and facilitating placement of title insurance with underwriters. Starwood receives distributions from Essex in connection with investments by the Company based on its equity interest in Essex. In each case, there will be no related offset to the Company. During the three and nine months ended September 30, 2021, the amounts incurred for services provided by Essex were $0.3 million and $0.6 million, respectively. During the three and nine months ended September 30, 2020, the Company did not incur any expenses from Essex. The Company has engaged Starwood’s affiliated Luxembourg office for accounting and administrative matters relating to certain European investments. All of the services provided by Starwood Luxembourg are done at cost. During the three and nine months ended September 30, 2021, the amounts incurred for services provided were $0.04 million, respectively. The Company has incurred legal expenses from third party law firms whose lawyers have been seconded to affiliates of Starwood Capital for the purpose of providing legal services in Europe to investment vehicles sponsored by Starwood Capital. During the three and nine months ended September 30, 2021, the amounts incurred for services provided were $0.1 million, respectively. | 11. Related Party Transactions Acquisition of Investments On January 3, 2019, the Company acquired a multifamily property portfolio (the “Florida Multifamily Portfolio”) from an affiliate of the Advisor, for approximately $100 million, excluding closing costs. The Florida Multifamily Portfolio is a garden style multifamily portfolio totaling 1,150 units and comprised of two properties located in Jacksonville, Florida and two properties located in Naples, Florida. The affiliate of the Advisor acquired the Florida Multifamily Portfolio on October 5, 2018 from an unaffiliated third party for approximately $100 million, excluding closing costs. On January 3, 2019, the Company acquired a multifamily property (the “Phoenix Property”) from an affiliate of the Advisor for approximately $46 million, excluding closing costs. The Phoenix Property is a garden style multifamily property totaling 256 units located in Mesa, Arizona. The affiliate of the Advisor acquired the Phoenix Property on June 29, 2018 from an unaffiliated third party for approximately $46 million, excluding closing costs. On January 3, 2019, the Company acquired a multifamily property (the “Savannah Property”) from an affiliate of the Advisor for approximately $36 million, excluding closing costs. The Savannah Property is a new construction multifamily property located in Savannah, Georgia totaling 203 units. The affiliate of the Advisor acquired the Savannah Property on July 19, 2018 from an unaffiliated third party for approximately $36 million, excluding closing costs. On March 20, 2020, the Company acquired a 75% interest in 60 State Street, a 911,000-square-foot office building in Boston, Massachusetts through a joint venture, between the Company and the Sponsor. The Sponsor purchased a 25% interest (the “60 State Street Membership Interests”) alongside the Company with the intent of subsequently selling it to an unaffiliated buyer. The Sponsor subsequently exercised its right to put the 60 State Street Membership Interests to the Company. During the second quarter of 2020, the Company acquired the 60 State Street Membership Interests in three transactions at a cost of $59.0 million plus interest equal to one month LIBOR plus 2.40% or $0.3 million. As a result of this transaction, the Company wholly owns the 60 State Street investment. On October 29, 2020, the Company borrowed $22 million from the Sponsor to fund an acquisition. The borrowing was repaid on November 3, 2020 plus interest equal to one month LIBOR plus 3.00%. Management Fee and Performance Participation Allocation The Advisor is entitled to an annual management fee equal to 1.25% of the Company’s NAV, payable monthly as compensation for the services it provides to the Company. The management fee can be paid, at the Advisor’s election, in cash, shares of common stock, or Operating Partnership units. The Advisor waived its management fee through March 31, 2019. During the years ended December 31, 2020 and 2019, the Company incurred management fees of $19.4 million and $5.5 million, respectively. To date, the Advisor has elected to receive the management fee in shares of the Company’s common stock. The Company issued 811,757 and 210,827 unregistered Class I shares to the Advisor as payment for the 2020 and 2019 management fees, respectively, and also had a payable of $2.1 million and $1.0 million related to the management fees as of December 31, 2020 and 2019, respectively, which are included in Due to affiliates on the Company’s Consolidated Balance Sheets. During January 2021, the Advisor was issued 97,097 unregistered Class I shares as payment for the $2.1 million management fee accrued as of December 31, 2020. During January 2020, the Advisor was issued 48,049 unregistered Class I shares as payment for the $1.0 million management fee accrued as of December 31, 2019. The shares issued to the Advisor for payment of the management fee were issued at the applicable NAV per share at the end of each month for which the fee was earned. During 2020 the Advisor submitted 8,787 Class I shares for repurchase resulting in a total repurchase of $0.2 million. During 2019, the Advisor did not submit any requests for share redemptions. Additionally, the Special Limited Partner, an affiliate of the Advisor, holds a performance participation interest in the Operating Partnership that entitles it to receive an allocation of the Operating Partnership’s total return to its capital account. Total return is defined as distributions paid or accrued plus the change in NAV. Under the Operating Partnership agreement, the annual total return will be allocated solely to the Special Limited Partner after the other unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual total return. The annual distribution of the performance participation interest will be paid in cash or Class I units of the Operating Partnership, at the election of the Special Limited Partner. During the years ended December 31, 2020 and 2019, the Company recognized $15.1 million and $10.4 million, respectively, of performance participation allocation in the Company’s Consolidated Statements of Operations. The 2020 performance participation allocation became payable on December 31, 2020 and, in January 2021, the Company caused the Operating Partnership to issue 695,320 Class I units in the Operating Partnership to the Special Limited Partner as payment for the 2020 performance participation allocation. Such Class I units were issued at the NAV per unit as of December 31, 2020. The 2019 performance participation allocation became payable on December 31, 2019 and, in January 2020, the Company caused the Operating Partnership to issue 480,539 Class I units in the Operating Partnership to the Special Limited Partner as payment for the 2019 performance participation allocation. Such Class I units were issued at the NAV per unit as of December 31, 2019. Due to Affiliates The following table details the components of Due to affiliates ($ in thousands): December 31, 2020 December 31, 2019 Accrued stockholder servicing fee $ 73,170 $ 44,086 Performance participation allocation 15,061 10,366 Advanced organization and offering costs 5,830 7,290 Accrued management fee 2,103 1,037 Accrued affiliate service provider expenses — 112 Advanced operating expenses 207 450 Total $ 96,371 $ 63,341 Accrued stockholder servicing fee As described in Note 2, the Company accrues the full amount of the future stockholder servicing fees payable to the Dealer Manager for Class T, Class S, and Class D shares up to the 8.75% limit at the time such shares are sold. As of December 31, 2020 and 2019, the Company has accrued $73.2 million and $44.1 million, respectively, of stockholder servicing fees payable to the Dealer Manager related to the Class T shares, Class S shares and Class D shares sold. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Offering, which provide, among other things, for the re-allowance of the full amount of the selling commissions and dealer manager fee and all or a portion of the stockholder servicing fees received by the Dealer Manager to such selected dealers. Advanced organization and offering costs The Advisor and its affiliates incurred $7.3 million, of organization and offering costs (excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) on behalf of the Company through December 21, 2019. Such amount is being reimbursed to the Advisor ratably over 60 months, which commenced in January 2020. Advanced operating expenses As of December 31, 2020 and 2019, the Advisor had advanced approximately $0.1 million and $0.1 million, respectively, of expenses on the Company’s behalf for general corporate expenses provided by unaffiliated third parties. Such amounts (incurred prior to 2019) are being reimbursed to the Advisor ratably over a 60 month period, which commenced in January 2020. As of December 31, 2020 and 2019, the Advisor had incurred approximately $2.7 million and $1.0 million, respectively, of expenses on the Company’s behalf for general corporate expenses. Such amounts are being reimbursed to the Advisor one month in arrears. Accrued affiliate service provider expenses The Company has engaged and expects to continue to engage Highmark Residential (formerly Milestone Management), a portfolio company owned by an affiliate of the Sponsor, to provide day-to-day operational and management services (including leasing, construction management, revenue management, accounting, legal and contract management, expense management, and capital expenditure projects and transaction support services) for a portion of the Company’s multifamily properties. The cost for such services is a percentage of the gross receipts and project costs, respectively, (which will be reviewed periodically and adjusted if appropriate), plus actual costs allocated for transaction support services. During the years ended December 31, 2020 and 2019, the Company has incurred approximately $2.8 million and $0.7 million, respectively, of expenses due to Highmark Residential services in connection with its investments and such amounts are included in Rental property operating expenses on the Company’s Consolidated Statements of Operations. The Company has engaged Rinaldi, Finkelstein & Franklin L.L.C. (“RFF”), a law firm owned and controlled by Ellis F. Rinaldi, Co-General Counsel and Senior Managing Director of the Sponsor and certain of its affiliates, to provide corporate legal support services to the Company. For the years ended December 31, 2020 and 2019, the amounts incurred for services provided by RFF were $0.3 million and $0.2 million, respectively. The Company has engaged Essex Title, LLC (“Essex”), a title agent company majority owned by the Sponsor. Essex acts as an agent for one or more underwriters in issuing title policies and/or providing support services in connection with investments by the Company, Starwood and their affiliates and related parties and third parties. Essex focuses on transactions in rate-regulated states where the cost of title insurance is non-negotiable. Essex will not perform services in non-regulated states for the Company, unless (i) in the context of a portfolio transaction that includes properties in rate-regulated states, (ii) as part of a syndicate of title insurance companies where the rate is negotiated by other insurers or their agents, (iii) when a third party is paying all or a material portion of the premium or (iv) when providing only support services to the underwriter. Essex earns fees, which would have otherwise been paid to third parties, by providing title agency services and facilitating placement of title insurance with underwriters. Starwood receives distributions from Essex in connection with investments by the Company based on its equity interest in Essex. In each case, there will be no related offset to the Company. During the year ended December 31, 2020, the Company paid Essex $0.2 million, for title services related to two investments and such costs were capitalized to Investments in real estate, net, on the Company’s Consolidated Balance Sheets. The Company did not engage Essex during the year ended December 31, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 12. Commitments and Contingencies As of September 30, 2021 and December 31, 2020, the Company is not subject to any material litigation nor is the Company aware of any material litigation threatened against it. | 12. Commitments and Contingencies As of December 31, 2020 and 2019, the Company is not subject to any material litigation nor is the Company aware of any material litigation threatened against it. |
Leases
Leases | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Leases | 13. Leases Lessee Certain of the Company’s investments in real estate are subject to a ground lease. The Company’s ground lease is classified as an operating lease based on the characteristics of the lease. The ground lease was acquired as part of the acquisition of real estate and no incremental costs were incurred for such ground lease. The Company’s ground lease is non-cancelable and does not contain any additional renewal options. The following table presents the future lease payments due under the Company’s ground lease as of September 30, 2021 ($ in thousands): Operating Lease 2021 (remaining) $ 172 2022 686 2023 686 2024 686 2025 712 Thereafter 27,210 Total undiscounted future lease payments 30,152 Difference between undiscounted cash flows and discounted cash flows (17,638 ) Total lease liability $ 12,514 The Company utilized its incremental borrowing rate, which was between 4.5% and 6% to determine its lease liabilities. As of September 30, 2021, the weighted average remaining lease term of the Company’s operating leases was 38 years. Payments under the Company’s ground leases contain fixed payment components. The Company’s ground lease contained escalations prior to the Company’s hold period. Lessor The Company’s rental revenue primarily consists of rent earned from operating leases at the Company’s multifamily, industrial, office, medical office and other properties. Leases at the Company’s industrial, office and medical office properties generally include a fixed base rent and certain leases also contain a variable component. The variable component of the Company’s operating leases at its industrial, office and medical office properties primarily consist of the reimbursement of operating expenses such as real estate taxes, insurance, and common area maintenance costs. Leases at the Company’s industrial, office, medical office and other properties are generally longer term and may contain extension and termination options at the lessee’s election. The Company’s rental revenue earned from leases at the Company’s multifamily properties primarily consists of a fixed base rent and certain leases contain a variable component that allows for the pass-through of certain operating expenses such as utilities. Leases at the Company’s multifamily properties are short term in nature, generally not greater than 12 months in length. The following table summarizes the fixed and variable components of the Company’s operating leases ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Fixed lease payments $ 136,247 $ 64,196 $ 325,242 $ 164,417 Variable lease payments 15,960 7,700 41,308 22,271 Rental revenue $ 152,207 $ 71,896 $ 366,550 $ 186,688 The following table presents the undiscounted future minimum rents the Company expects to receive for its industrial, office, medical office and other properties ($ in thousands) as of September 30, 2021. Leases at the Company’s multifamily properties are short term, generally 12 months or less, and are therefore not included. Year Future Minimum Rents 2021(remaining) $ 69,631 2022 202,023 2023 189,093 2024 166,671 2025 144,205 Thereafter 522,553 Total $ 1,294,176 | 13. Leases Lessee Certain of the Company’s investments in real estate are subject to a ground lease. The Company’s ground lease is classified as an operating lease based on the characteristics of the lease. The ground lease was acquired as part of the acquisition of real estate and no incremental costs were incurred for such ground lease. The Company’s ground lease is non-cancelable and does not contain any additional renewal options. The following table presents the future lease payments due under the Company’s ground lease as of December 31, 2020 ($ in thousands): Year Operating Leases 2021 $ 399 2022 399 2023 399 2024 399 2025 399 Thereafter 16,354 Total undiscounted future lease payments 18,349 Difference between undiscounted cash flows and discounted cash flows 11,959 Total lease liability $ 6,390 The Company utilized its incremental borrowing rate of 6% to determine its lease liabilities. As of December 31, 2020, the weighted average remaining lease term of the Company’s operating lease was 46 years. Payments under the Company’s ground lease contain fixed payment components. The Company’s ground lease contained escalations prior to the Company’s hold period. Lessor The Company’s rental revenue primarily consists of rent earned from operating leases at the Company’s multifamily, industrial, office and medical office properties. Leases at the Company’s industrial and office properties generally include a fixed base rent and certain leases also contain a variable component. The variable component of the Company’s operating leases at its industrial, office and medical office properties primarily consist of the reimbursement of operating expenses such as real estate taxes, insurance, and common area maintenance costs. Leases at the Company’s industrial, office and medical office properties are generally longer term and may contain extension and termination options at the lessee’s election. The Company’s rental revenue earned from leases at the Company’s multifamily properties primarily consists of a fixed base rent and certain leases contain a variable component that allows for the pass-through of certain operating expenses such as utilities. Leases at the Company’s multifamily properties are short term in nature, generally not greater than 12 months in length. The following table summarizes the fixed and variable components of the Company’s operating leases ($ in thousands): For the Year Ended December 31, 2020 2019 Fixed lease payments $ 238,897 $ 46,908 Variable lease payments 34,950 4,882 Rental revenue $ 273,847 $ 51,790 The following table presents the undiscounted future minimum rents the Company expects to receive for its industrial, office and medical office properties as of December 31, 2020 ($ in thousands). Leases at the Company’s multifamily properties are short term, generally 12 months or less, and are therefore not included. Year Future Minimum Rents 2021 $ 129,004 2022 120,778 2023 112,706 2024 99,018 2025 86,304 Thereafter 341,118 Total $ 888,928 |
Segment Reporting
Segment Reporting | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||
Segment Reporting | 14. Segment Reporting The Company operates in seven reportable segments: Multifamily properties, Hospitality properties, Industrial properties, Office properties, Medical office properties, Other properties and Investments in real estate debt. The Company allocates resources and evaluates results based on the performance of each segment individually. The Company believes that segment net operating income is the key performance metric that captures the unique operating characteristics of each segment. The following table sets forth the total assets by segment ($ in thousands): September 30, 2021 December 31, 2020 Multifamily properties $ 5,418,160 $ 2,738,210 Hospitality properties 243,157 244,065 Industrial properties 2,144,509 551,898 Office properties 1,291,489 1,186,328 Medical office properties 189,953 196,559 Other property 96,252 — Investments in real estate debt 964,075 218,225 Other (Corporate) 1,476,016 195,531 Total assets $ 11,823,611 $ 5,330,816 The following table sets forth the financial results by segment for the three months ended September 30, 2021 ($ in thousands): Multifamily Hospitality Industrial Office Medical Office Other Investments in Real Estate Debt Total Revenues: Rental revenue $ 89,742 $ — $ 29,261 $ 29,272 $ 3,615 $ 317 $ — $ 152,207 Hospitality revenue — 9,364 — — — — — 9,364 Other revenue 654 94 — 106 10 — — 864 Total revenues 90,396 9,458 29,261 29,378 3,625 317 — 162,435 Expenses: Rental property operating 40,032 — 7,169 10,223 1,664 26 — 59,114 Hospitality operating — 5,653 — — — — — 5,653 Total segment expenses 40,032 5,653 7,169 10,223 1,664 26 — 64,767 Loss from unconsolidated real estate ventures — (447 ) — — — — — (447 ) Income from investments in real estate debt — — — — — — 19,268 19,268 Segment net operating income $ 50,364 $ 3,358 $ 22,092 $ 19,155 $ 1,961 $ 291 $ 19,268 $ 116,489 Depreciation and amortization $ (44,908 ) $ (2,138 ) $ (17,560 ) $ (15,546 ) $ (2,065 ) $ (236 ) $ — $ (82,453 ) General and administrative (6,588 ) Management fees (17,653 ) Performance participation allocation (79,552 ) Interest expense (38,887 ) Other expense, net (1,449 ) Net loss $ (110,093 ) Net loss attributable to non-controlling interests in consolidated joint ventures 176 Net loss attributable to non-controlling interests in Operating Partnership 665 Net loss attributable to stockholders $ (109,252 ) The following table sets forth the financial results by segment for the three months ended September 30, 2020 ($ in thousands): Multifamily Hospitality Industrial Office Medical Office Real Estate- Related Securities Total Revenues: Rental revenue $ 32,891 $ — $ 7,027 $ 28,005 $ 3,973 $ — $ 71,896 Hospitality revenue — 4,420 — — — — 4,420 Other revenue 531 13 — 49 11 — 604 Total revenues 33,422 4,433 7,027 28,054 3,984 — 76,920 Expenses: Rental property operating 13,186 — 1,641 9,644 1,444 — 25,915 Hospitality operating — 3,589 — — — — 3,589 Total segment expenses 13,186 3,589 1,641 9,644 1,444 — 29,504 Loss from unconsolidated real estate ventures — (666 ) — — — — (666 ) Income from investments in real estate-related securities, net — — — — — 11,068 11,068 Segment net operating income $ 20,236 $ 178 $ 5,386 $ 18,410 $ 2,540 $ 11,068 $ 57,818 Depreciation and amortization $ (15,702 ) $ (2,142 ) $ (4,161 ) $ (14,214 ) $ (2,324 ) $ — $ (38,543 ) General and administrative (2,023 ) Management fees (5,018 ) Performance participation allocation — Interest expense (22,539 ) Other expense, net (192 ) Net loss $ (10,497 ) Net loss attributable to non- controlling interests in consolidated joint ventures 139 Net loss attributable to non- controlling interests in Operating Partnership 43 Net loss attributable to stockholders $ (10,315 ) The following table sets forth the financial results by segment for the nine months ended September 30, 2021 ($ in thousands): Multifamily Hospitality Industrial Office Medical Office Other Investments in Real Estate Debt Total Revenues: Rental revenue $ 202,402 $ — $ 61,260 $ 91,505 $ 11,066 $ 317 $ — $ 366,550 Hospitality revenue — 24,817 — — — — — 24,817 Other revenue 1,872 260 — 230 31 — — 2,393 Total revenues 204,274 25,077 61,260 91,735 11,097 317 — 393,760 Expenses: Rental property operating 86,839 — 15,960 32,352 4,720 26 — 139,897 Hospitality operating — 15,026 — — — — — 15,026 Total segment expenses 86,839 15,026 15,960 32,352 4,720 26 — 154,923 Loss from unconsolidated real estate ventures — (448 ) — — — — — (448 ) Income from investments in real estate debt — — — — — — 37,898 37,898 Segment net operating income $ 117,435 $ 9,603 $ 45,300 $ 59,383 $ 6,377 $ 291 $ 37,898 $ 276,287 Depreciation and amortization $ (102,176 ) $ (6,401 ) $ (36,470 ) $ (46,273 ) $ (6,378 ) $ (236 ) $ — $ (197,934 ) General and administrative (15,210 ) Management fees (36,364 ) Performance participation allocation (111,934 ) Interest expense (88,994 ) Other expense, net (527 ) Net loss $ (174,676 ) Net loss attributable to non-controlling interests in consolidated joint ventures 319 Net loss attributable to non-controlling interests in Operating Partnership 1,235 Net loss attributable to stockholders $ (173,122 ) The following table sets forth the financial results by segment for the nine months ended September 30, 2020 ($ in thousands): Multifamily Hospitality Industrial Office Medical Office Investments in Real Estate Debt Total Revenues: Rental revenue $ 87,666 $ — $ 20,415 $ 68,777 $ 9,830 $ — $ 186,688 Hospitality revenue — 17,134 — — — — 17,134 Other revenue 1,376 91 — 103 30 — 1,600 Total revenues 89,042 17,225 20,415 68,880 9,860 — 205,422 Expenses: Rental property operating 33,457 — 5,003 23,059 3,354 — 64,873 Hospitality operating — 12,294 — — — — 12,294 Total segment expenses 33,457 12,294 5,003 23,059 3,354 — 77,167 Loss from unconsolidated real estate ventures — (887 ) — — — — (887 ) Loss from investments in real estate- related securities, net — — — — — (27 ) (27 ) Segment net operating income (loss) $ 55,585 $ 4,044 $ 15,412 $ 45,821 $ 6,506 $ (27 ) $ 127,341 Depreciation and amortization $ (49,826 ) $ (6,284 ) $ (12,489 ) $ (34,319 ) $ (5,075 ) $ — $ (107,993 ) General and administrative (6,163 ) Management fees (13,560 ) Performance participation allocation (46 ) Interest expense (65,448 ) Other expense, net (29 ) Net loss $ (65,898 ) Net loss attributable to non-controlling interests in consolidated joint ventures 1,186 Net loss attributable to non-controlling interests in Operating Partnership 458 Net loss attributable to stockholders $ (64,254 ) | 14. Segment Reporting The Company operates in six reportable segments: Multifamily properties, Hotel properties, Industrial properties, Office properties, Medical office properties and Real estate-related securities. The Company allocates resources and evaluates results based on the performance of each segment individually. The Company believes that segment net operating income is the key performance metric that captures the unique operating characteristics of each segment. The following table sets forth the total assets by segment ($ in thousands): December 31, December 31, Multifamily $ 2,738,210 $ 1,038,777 Hotel 244,065 253,273 Industrial 551,898 330,110 Office 1,186,328 303,396 Medical office 196,559 39,143 Real estate-related securities 218,225 277,651 Other (Corporate) 195,531 147,972 Total Assets $ 5,330,816 $ 2,390,322 The following table sets forth the financial results by segment for the year ended December 31, 2020 ($ in thousands): Multifamily Hotel Industrial Office Medical Office Real Estate- Related Securities Total Revenues: Rental revenue $ 132,835 $ — $ 30,203 $ 97,078 $ 13,731 $ — $ 273,847 Hotel revenue — 22,200 — — — — 22,200 Other revenue 2,045 146 — 145 40 — 2,376 Total revenues 134,880 22,346 30,203 97,223 13,771 — 298,423 Expenses: Rental property operating 51,878 — 7,261 32,895 4,908 — 96,942 Hotel operating — 16,242 — — — — 16,242 Total segment expenses 51,878 16,242 7,261 32,895 4,908 — 113,184 Income from real estate-related securities, net — — — — — 7,206 7,206 Loss from unconsolidated real estate ventures — (1,462 ) — — — — (1,462 ) Segment net operating income $ 83,002 $ 4,642 $ 22,942 $ 64,328 $ 8,863 $ 7,206 $ 190,983 Depreciation and amortization $ (73,365 ) $ (8,403 ) $ (18,323 ) $ (48,477 ) $ (7,296 ) $ — $ (155,864 ) General and administrative (8,624 ) Management fees (19,423 ) Performance participation allocation (15,061 ) Interest expense (88,918 ) Other expense, net (1,293 ) Net loss $ (98,200 ) Net loss attributable to non- controlling interests in consolidated joint ventures 1,300 Net loss attributable to non- controlling interests in Operating Partnership 642 Net loss attributable to stockholders $ (96,258 ) The following table sets forth the financial results by segment for the year ended December 31, 2019 ($ in thousands): Multifamily Hotel Industrial Office Medical Office Real Estate- Related Securities Total Revenues: Rental revenue $ 29,768 $ — $ 2,489 $ 19,022 $ 511 $ — $ 51,790 Hotel revenue — 40,559 — — — — 40,559 Other revenue 1,669 259 — 31 — — 1,959 Total revenues 31,437 40,818 2,489 19,053 511 — 94,308 Expenses: Rental property operating 11,396 — 583 6,388 96 — 18,463 Hotel operating — 23,507 — — — — 23,507 Total segment expenses 11,396 23,507 583 6,388 96 — 41,970 Income from real estate-related securities, net — — — — — 10,158 10,158 Earnings from unconsolidated real estate ventures — 175 — — — — 175 Segment net operating income $ 20,041 $ 17,486 $ 1,906 $ 12,665 $ 415 $ 10,158 $ 62,671 Depreciation and amortization $ (17,520 ) $ (8,239 ) $ (1,570 ) $ (11,312 ) $ (255 ) $ — $ (38,896 ) General and administrative (4,523 ) Management fees (5,469 ) Performance participation allocation (10,366 ) Interest expense (25,311 ) Other income, net 916 Net loss $ (20,978 ) Net loss attributable to non- controlling interests in consolidated joint ventures 152 Net loss attributable to stockholders $ (20,826 ) |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 15. Quarterly Financial Information (Unaudited) The following tables present the Company’s quarterly results ($ in thousands, except per share data): 2020 March 31 June 30 September 30 December 31 Total revenues $ 57,037 $ 71,465 $ 76,920 $ 93,001 Net loss (40,647 ) (14,754 ) (10,497 ) (32,302 ) Net loss attributable to stockholders (39,677 ) (14,262 ) (10,315 ) (32,004 ) Net loss per share, basic and diluted (0.69 ) (0.21 ) (0.14 ) (0.38 ) 2019 March 31 June 30 September 30 December 31 Total revenues $ 15,415 $ 18,745 $ 24,026 $ 36,122 Net loss (2,468 ) (3,596 ) (3,076 ) (11,838 ) Net loss attributable to stockholders (2,468 ) (3,578 ) (3,051 ) (11,729 ) Net loss per share, basic and diluted (0.24 ) (0.22 ) (0.12 ) (0.30 ) 2018 March 31 June 30 September 30 December 31 Total revenues $ — $ — $ — $ — Net loss (16 ) (16 ) (16 ) (1,645 ) Net loss per share, basic and diluted (1.55 ) (1.60 ) (1.60 ) (1.66 ) |
Subsequent Events
Subsequent Events | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | ||
Subsequent Events | 15. Subsequent Events Acquisitions/New Investments Subsequent to September 30, 2021, the Company acquired an aggregate of $4.9 billion of real estate, exclusive of closing costs and related working capital, across five separate transactions. Financings Subsequent to September 30, 2021, to finance its acquisitions the Company borrowed an aggregate of $758.9 million across its revolving credit facility, Barclays RA and Line of Credit. Proceeds from the Issuance of Common Stock As of November 12, 2021, the Company had received net proceeds of $6.9 billion from the issuance of its common stock in its public offerings. | 16. Subsequent Events Acquisitions / New Investments Subsequent to December 31, 2020, the Company acquired a real estate investment for approximately $134.8 million, exclusive of closing costs, and originated one loan for $500.4 million. Status of the Offering As of March 26, 2021, the Company had sold an aggregate of 120,404,905 shares of its common stock (consisting of 2,850,070 Class T shares, 61,954,369 Class S shares, 4,699,738 Class D shares, and 50,900,728 Class I shares) in the Offering resulting in net proceeds of approximately $2.5 billion to the Company as payment for such shares. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. All significant intercompany balances and transactions have been eliminated in consolidation. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC. Certain amounts in the Company’s prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation. The Company has chosen to break out a financial statement line item in the Company’s Condensed Consolidated Statements of Cash Flows. On the Condensed Consolidated Statements of Cash Flows, “Straight-line rent amortization” has been reclassified from “Change in assets and liabilities—increase in other assets” for the nine months ended September 30, 2020. Such reclassification had no effect on the previously reported totals or subtotals included in the Condensed Consolidated Statements of Cash Flows. The accompanying unaudited 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. For consolidated joint ventures, the non-controlling partner’s share of the assets, liabilities and operations of the joint ventures is included in non-controlling interests as equity of the Company. The non-controlling partner’s interest is generally computed as the joint venture partner’s ownership percentage. 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. The Operating Partnership is considered to be a VIE. The Company consolidates the Operating Partnership because it has the ability to direct the most significant activities of the entity such as purchases, dispositions, financings, budgets, and overall operating plans. Where the Company does not have the power to direct the activities of the VIE that most significantly impact its economic performance, the Company’s interest for those partially owned entities are accounted for using the equity method of accounting. The Company meets the VIE disclosure exemption criteria, as the Company’s interest in the Operating Partnership is considered a majority voting interest. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. | Principles of Consolidation and Basis of Presentation The accompanying audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany balances and transactions have been eliminated in consolidation. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are presented fairly and that estimates made in preparing its consolidated financial statements are reasonable and prudent. The accompanying consolidated financial statements include the accounts of the Company, the Company’s subsidiaries and joint ventures in which the Company has a controlling interest. For consolidated joint ventures, the non-controlling partner’s share of the assets, liabilities and operations of the joint ventures is included in non-controlling interests as equity of the Company. The non-controlling partner’s interest is generally computed as the joint venture partner’s ownership percentage. 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. The Operating Partnership is considered to be a VIE. The Company consolidates the Operating Partnership because it has the ability to direct the most significant activities of the entities such as purchases, dispositions, financings, budgets, and overall operating plans. Where the Company does not have the power to direct the activities of the VIE that most significantly impact its economic performance, the Company’s interest for those partially owned entities are accounted for using the equity method of accounting. The Company meets the VIE disclosure exemption criteria, as the Company’s interest in the Operating Partnership is considered a majority voting interest. The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. |
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. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. | 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. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of cash received for subscriptions prior to the date in which the subscriptions are effective. The Company’s restricted cash is held primarily in a bank account controlled by the Company’s transfer agent but in the name of the Company. The remaining balance of restricted cash primarily consists of amounts in escrow related to real estate taxes and insurance in connection with mortgages at certain of the Company’s properties and tenant security deposits. | Restricted Cash Restricted cash primarily consists of cash received for subscriptions prior to the date in which the subscriptions are effective. The Company’s restricted cash is held primarily in a bank account controlled by the Company’s transfer agent but in the name of the Company. The remaining balance of restricted cash primarily consists of amounts in escrow related to real estate taxes and insurance in connection with mortgages at certain of the Company’s properties and tenant security deposits. |
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. 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 cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related costs, 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 35 - 40 years Building and land improvements 5 - 15 years Furniture, fixtures and equipment 5 - 7 years Lease intangibles and leasehold improvements Shorter of useful life or lease term Repairs and maintenance are expensed to operations as incurred and are included in Rental property operating and Hospitality operating expenses on the Company’s Condensed Consolidated Statements of Operations. Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. 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 received 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. The amortization of acquired above-market and below-market leases is recorded as an adjustment to Rental revenue on the Company’s Condensed Consolidated Statements of Operations. The amortization of in-place leases is recorded as an adjustment to Depreciation and amortization expense on the Company’s Condensed Consolidated Statements of Operations. Certain of the Company’s investments in real estate are subject to a ground lease, for which a lease liability and corresponding right-of-use (“ROU”) asset were recognized. The Company calculates the amount of the lease liability and ROU asset by taking the present value of the remaining lease payments, and adjusting the ROU asset for any existing straight-line ground rent liability and acquired ground lease intangibles. The Company’s estimated incremental borrowing rate of a loan with a similar term as the ground lease was used as the discount rate. The lease liability is included as a component of Other liabilities and the related ROU asset is recorded as a component of Investments in real estate, net on the Company’s Condensed Consolidated Balance Sheets. The amortization of the below-market ground lease is recorded as an adjustment to Depreciation and amortization expense on the Company’s Condensed Consolidated Statements of Operations. The Company’s management reviews its real estate properties for impairment when there is an event or change in circumstances that indicates an impaired value. Since cash flows on real estate properties considered to be “long-lived assets to be held and used” are considered on an undiscounted basis to determine whether an asset has been impaired, the Company’s strategy of holding properties over the long term decreases the likelihood of recording an impairment loss. 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 must be reduced to their fair value. During the periods presented, no such impairment occurred. | 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. 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 cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related costs, 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 35 - 40 years Building and land improvements 5 - 15 years Furniture, fixtures and equipment 5 - 7 years Lease intangibles and leasehold improvements Shorter of useful life or lease term Repairs and maintenance are expensed to operations as incurred and are included in Rental property operating and Hotel operating expenses on the Company’s Consolidated Statements of Operations. Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. 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 received 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. 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 expense on the Company’s Consolidated Statements of Operations. Certain of the Company’s investments in real estate are subject to a ground lease, for which a lease liability and corresponding right-of-use (“ROU”) asset were recognized. The Company calculates the amount of the lease liability and ROU asset by taking the present value of the remaining lease payments, and adjusting the ROU asset for any existing straight-line ground rent liability and acquired ground lease intangibles. The Company’s estimated incremental borrowing rate of a loan with a similar term as the ground lease was used as the discount rate. The lease liability is included as a component of Accounts payable, accrued expenses, and other liabilities and the related ROU asset is recorded as a component of Investments in real estate, net on the Company’s Consolidated Balance Sheets. The amortization of the below-market ground lease is recorded as an adjustment to Depreciation and amortization expense on the Company’s Consolidated Statements of Operations. The Company’s management reviews its real estate properties for impairment when there is an event or change in circumstances that indicates an impaired value. Since cash flows on real estate properties considered to be “long-lived assets to be held and used” are considered on an undiscounted basis to determine whether an asset has been impaired, the Company’s strategy of holding properties over the long term decreases the likelihood of recording an impairment loss. 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 |
Investments in Unconsolidated Real Estate Ventures | Investments in Unconsolidated Real Estate Ventures Investments in unconsolidated joint ventures are initially recorded at cost, and subsequently adjusted for equity in earnings or losses and cash contributions and distributions. Under the equity method of accounting, the net equity investment of the Company is reflected within the Condensed Consolidated Balance Sheets, and the Company’s share of net income or loss from the joint ventures is included within the Company’s Condensed Consolidated Statements of Operations. The joint venture agreements may designate different percentage allocations among investors for profits and losses; however, the Company’s recognition of joint venture income or loss generally follows the joint venture’s distribution priorities, which may change upon the achievement of certain investment return thresholds. The Company’s investments in unconsolidated joint ventures are reviewed for impairment periodically and the Company records impairment charges when events or circumstances change indicating that a decline in the fair values below the carrying values has occurred and such decline is other-than-temporary. The ultimate realization of the investment in unconsolidated joint ventures is dependent on a number of factors, including the performance of each investment and market conditions. | Investments in Unconsolidated Real Estate Ventures Investments in unconsolidated joint ventures are initially recorded at cost, and subsequently adjusted for equity in earnings and cash contributions and distributions. Under the equity method of accounting, the net equity investment of the Company is reflected within the Consolidated Balance Sheets, and the Company’s share of net income or loss from the joint ventures is included within the Company’s Consolidated Statements of Operations. The joint venture agreements may designate different percentage allocations among investors for profits and losses; however, the Company’s recognition of joint venture income or loss generally follows the joint venture’s distribution priorities, which may change upon the achievement of certain investment return thresholds. The Company’s investments in unconsolidated joint ventures are reviewed for impairment periodically and the Company records impairment charges when events or circumstances change indicating that a decline in the fair values below the carrying values has occurred and such decline is other-than-temporary. The ultimate realization of the investment in unconsolidated joint ventures is dependent on a number of factors, including the performance of each investment and market conditions. |
Investments in Real Estate Debt | Investments in Real Estate Debt The Company’s investments in real estate debt consists of loans secured by real estate and real estate-related securities. The Company has elected to classify its real estate-related securities as trading securities and record such investments at fair value. As such, the resulting unrealized gains and losses of such securities are recorded as a component of Income (loss) from investments in real estate debt on the Company’s Condensed Consolidated Statements of Operations. The Company elected the fair value option (“FVO”) for its loans secured by real estate. As such, the resulting unrealized gains and losses of such loans are recorded as a component of Income (loss) from investments in real estate debt on the Company’s Condensed Consolidated Statements of Operations. Interest income from the Company’s investments in real estate-related securities is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of premiums and discounts associated with these investments is deferred and recorded over the term of the investment as an adjustment to yield. Upfront costs and fees related to items for which the FVO is elected shall be recognized in earnings as incurred and not deferred. Such items are recorded as components of Income (loss) from investments in real estate debt on the Company’s Condensed Consolidated Statements of Operations. | Investments in Real Estate-Related Securities The Company has elected to classify its investment in real estate-related securities as trading securities and carry such investments at estimated fair value. As such, the resulting gains and losses are recorded as a component of Income from real estate-related securities, net on the Company’s Consolidated Statements of Operations. Interest income from the Company’s investments in real estate-related securities is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of premiums and discounts associated with these investments is deferred and recorded over the term of the investment as an adjustment to yield. Such items are recorded as components of Investments in real estate-related securities on the Company’s Consolidated Balance Sheets. |
Derivative Instruments | Derivative Instruments The Company uses derivative financial instruments such as foreign currency swaps, interest rate swaps and interest rate caps to manage risks from fluctuations in exchange rates and interest rates. The Company records its derivatives on its Condensed Consolidated Balance Sheets at fair value and such amounts are included in Other assets or Other liabilities. Any changes in the fair value of these derivatives are recorded in earnings. | Derivative Instruments In the normal course of business, the Company is exposed to the effect of interest rate changes. The Company seeks to manage these risks by following established risk management policies and procedures including the use of derivatives to hedge interest rate risk on debt instruments. The Company recognizes all derivatives as either assets or liabilities in the Company’s Consolidated Balance Sheets and measures those instruments at fair value. |
Foreign Currency | Foreign Currency The Company’s functional currency is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the reporting period. Income statement accounts are translated at average rates for the reporting period. Gains and losses from translation of foreign denominated transactions into U.S. dollars are included in current results of operations. Gains and losses resulting from foreign currency transactions are also included in current results of operations. Aggregate foreign currency translation and transaction losses included in operations totaled ($11.4) million and ($16.8) million for the three and nine months ended September 30, 2021, respectively. These amounts are recorded as a component of Income (loss) from investments in real estate debt on the Company’s Condensed Consolidated Statements of Operations. | |
Fair Value Measurements | Fair Value Measurements Under normal market conditions, the fair value of an investment is the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). Additionally, there is a hierarchal framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment and the state of the market place, including the existence and transparency of transactions between market participants. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following levels within the fair value hierarchy: 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. Valuation of assets and liabilities measured at fair value The Company’s investments in real estate debt are reported at fair value. The Company’s investments in real estate debt include commercial mortgage-backed securities (“CMBS”) and residential mortgage-backed securities (“RMBS”). The Company generally determines the fair value of its investments by utilizing third-party pricing service providers. In determining the value of a particular investment, the pricing service providers may use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models to determine the reported price. The pricing service providers’ internal models for real estate-related securities usually consider the attributes applicable to a particular class of security (e.g., credit rating, seniority), current market data, and estimated cash flows for each class and incorporate deal collateral performance such as prepayment speeds and default rates, as available. Certain of the Company’s investments in real estate debt include loans secured by real estate, such as its term loan, which may not have readily available market quotations. In such cases, the Company will generally determine the initial value based on the origination amount or acquisition price of such investment if acquired by the Company or the par value of such investment if originated by the Company. Following the initial measurement, the Company will determine fair value by utilizing or reviewing certain of the following inputs (i) market yield data, (ii) discounted cash flow modeling, (iii) collateral asset performance, (iv) local or macro real estate performance, (v) capital market conditions, (vi) debt yield or loan-to-value ratios and (vii) borrower financial condition and performance. The Company’s investments in equity securities of public real estate-related companies are reported at fair value and were recorded as a component of Other assets on the Company’s Condensed Consolidated Balance Sheets. As such, the resulting unrealized gains and losses are recorded as a component of Other income (expense) on the Company’s Condensed Consolidated Statements of Operations. During the three months ended September 30, 2021, the Company recognized $1.3 million of unrealized losses on its investments in equity securities. In determining the fair value of public equity securities, the Company utilizes the closing price of such securities in the principal market in which the security trades. The Company’s derivative financial instruments are reported at fair value. The Company’s interest rate swap agreements are valued using a discounted cash flow analysis based on the terms of the contract and the forward interest rate curve adjusted for the Company’s nonperformance risk. The Company’s interest rate cap positions are valued using models developed by the respective counterparty as well as third party pricing service providers that use as their basis readily observable market parameters (such as forward yield curves and credit default swap data). As of September 30, 2021, the Company held 15 interest rate caps with an aggregate notional value of $3.0 billion, one interest rate cap with an aggregate notional value of kr301.5 million associated with the Danish investment and two interest rate swaps with an aggregate notional value of $252.2 million. The fair values of the Company’s foreign currency swaps are determined by comparing the contracted forward exchange rate to the current market exchange rate. The current market exchange rates are determined by using market spot rates, forward rates and interest rate curves for the underlying instruments. As of September 30, 2021, the Company held four GBP, two EUR and one DKK foreign currency swaps, with an aggregate notional value of £268 million, €85 million and kr165 million, respectively. The fair values of the Company’s financial instruments (other than investments in real estate debt, mortgage notes, revolving credit facility and derivative instruments), including cash, cash equivalents and restricted cash and other financial instruments, approximate their carrying or contract value. The following table details the Company’s assets and liabilities measured at fair value on a recurring basis ($ in thousands): September 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Investments in real estate debt $ — $ 478,669 $ 485,406 $ 964,075 $ — $ 218,225 $ — $ 218,225 Equity securities 173,732 — — 173,732 — — — — Derivatives — 62,344 — 62,344 — 1,410 — 1,410 Total $ 173,732 $ 541,013 $ 485,406 $ 1,200,151 $ — $ 219,635 $ — $ 219,635 Liabilities: Derivatives $ — $ 952 $ — $ 952 $ — $ 5,167 $ — $ 5,167 Total $ — $ 952 $ — $ 952 $ — $ 5,167 $ — $ 5,167 The following table details the Company’s assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Investments in Balance as of December 31, 2020 $ — Purchases 504,540 Included in net income Foreign exchange (19,134 ) Unrealized gain (loss) — Balance as of September 30, 2021 $ 485,406 The following table contains the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy ($ in thousands): September 30, 2021 Fair Value Valuation Technique Unobservable Inputs Weighted Impact to Valuation from an Investments in Real Estate Debt $ 485,406 Transacted value Cost N/A N/A Valuation of liabilities not measured at fair value 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 the present value using an appropriate discount rate. Additionally, the Company considers current market rate 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. As of September 30, 2021, the fair value of the Company’s mortgage notes, revolving credit facility and secured financings on investments in real estate debt was approximately $26.8 million below the outstanding principal balance. | Fair Value Measurements Under normal market conditions, the fair value of an investment is the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). Additionally, there is a hierarchal framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment and the state of the market place, including the existence and transparency of transactions between market participants. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following levels within the fair value hierarchy: 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. |
Valuation | Valuation The Company generally determines the fair value of its real estate-related securities by utilizing third-party pricing service providers. In determining the value of a particular investment, the pricing service providers may use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models to determine the reported price. The pricing service providers’ internal models for real estate-related securities usually consider the attributes applicable to a particular class of security (e.g., credit rating, seniority), current market data, and estimated cash flows for each class and incorporate deal collateral performance such as prepayment speeds and default rates, as available. On April 1, 2020 the entire Investments in real estate-related securities portfolio was transferred into Level 2 from Level 3 primarily due to increased price transparency. As of December 31, 2020 and December 31, 2019, the Company’s investments in real estate-related securities are classified as Level 2. 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 the present value using an appropriate discount rate. Additionally, the Company considers current market rate 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. As of December 31, 2020, the fair value of the Company’s mortgage notes, revolving credit facility and repurchase agreements was approximately $24.3 million below the outstanding principal balance. The Company’s interest rate swap agreements are valued using a discounted cash flow analysis based on the terms of the contract and the forward interest rate curve adjusted for the Company’s nonperformance risk. The Company’s interest rate cap positions are valued using models developed by the respective counterparty as well as third party pricing service providers that use as their basis readily observable market parameters (such as forward yield curves and credit default swap data). The Company’s derivative positions are classified as Level 2. As of December 31, 2020, the fair value of the Company’s interest rate caps were approximately $5.4 million below their cost. As of December 31, 2020, the Company’s interest rate swaps had an aggregate fair value liability of $5.2 million. The fair values of the Company’s financial instruments (other than real estate-related securities, mortgage notes, revolving credit facility and derivative instruments), including cash and cash equivalents and other financial instruments, approximate their carrying or contract value. | |
Deferred Charges | Deferred Charges The Company’s deferred charges include financing and leasing costs. Deferred financing costs include legal, structuring and other loan costs incurred by the Company for its financing agreements. Deferred financing costs related to the Company’s mortgage notes are recorded as an offset to the related liability and amortized over the term of the applicable financing instruments as interest expense. Deferred financing costs related to the Company’s revolving credit facility and its unsecured revolving credit facility are recorded as a component of Other assets on the Company’s Condensed Consolidated Balance Sheets and amortized over the term of the applicable financing agreement. Deferred leasing costs incurred in connection with new leases, which consist primarily of brokerage commissions, are recorded as a component of Other assets on the Company’s Condensed Consolidated Balance Sheets and amortized over the life of the related lease. | Deferred Charges The Company’s deferred charges include financing and leasing costs. Deferred financing costs include legal, structuring and other loan costs incurred by the Company for its financing agreements. Deferred financing costs related to the Company’s mortgage notes are recorded as an offset to the related liability and amortized over the term of the applicable financing instruments as interest expense. Deferred financing costs related to the Company’s revolving credit facility and its unsecured revolving credit facility are recorded as a component of Other assets on the Company’s Consolidated Balance Sheets and amortized over the term of the applicable financing agreement. Deferred leasing costs incurred in connection with new leases, which consist primarily of brokerage commissions, are recorded as a component of Other assets on the Company’s Consolidated Balance Sheets and amortized over the life of the related lease. |
Revenue Recognition | Revenue Recognition The Company commences revenue recognition on its leases based on a number of factors, including the initial determination that the contract is or contains a lease. Generally, all of the Company’s contracts are, or contain leases, and therefore revenue is recognized when the lessee takes possession of or controls the physical use of the leased assets. In most instances this occurs on the lease commencement date. At the inception of a new lease, including new leases that arise from amendments, the Company assesses the terms and conditions of the lease to determine the proper lease classification. The Company adopted the provisions of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) and related ASUs subsequently issued (collectively, “ASC 842”) as of January 1, 2019. A lease is classified as an operating lease if none of the following criteria are met: (i) ownership transfers to the lessee at the end of the lease term, (ii) the lessee has a purchase option that is reasonably expected to be exercised, (iii) the lease term is for a major part of the economic life of the leased property, (iv) the present value of the future lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the leased property, and (v) the leased property is of such a specialized nature that it is expected to have no future alternative use to the Company at the end of the lease term. If one or more of these criteria are met, the lease will generally be classified as a sales-type lease, unless the lease contains a residual value guarantee from a third party other than the lessee, in which case it would be classified as a direct financing lease under certain circumstances in accordance with ASC 842. The Company’s rental revenue primarily consists of fixed contractual base rent arising from tenant leases at the Company’s properties under operating leases. Revenue under operating leases that are deemed probable of collection, is recognized as revenue on a straight-line basis over the non-cancelable terms of the related leases. For leases that have fixed and measurable rent escalations, the difference between such rental income earned and the cash rent due under the provisions of the lease is recorded in the Company’s Condensed Consolidated Balance Sheets. The Company’s Hospitality revenue consists of room revenue and food and beverage revenue. Room revenue is recognized when the related room is occupied and other hospitality revenue is recognized when the service is rendered. For leases that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. Certain of the Company’s contracts contain nonlease components (e.g., charges for management fees, common area maintenance, and reimbursement of third-party maintenance expenses) in addition to lease components (i.e., monthly rental charges). Services related to nonlease components are provided over the same period of time as, and billed in the same manner as, monthly rental charges. The Company elected to apply the practical expedient available under ASC 842, for all classes of assets, not to segregate the lease components from the nonlease components when accounting for operating leases. Since the lease component is the predominant component under each of these leases, combined revenues from both the lease and nonlease components are accounted for in accordance with ASC 842 and reported as Rental revenues in the Company’s Condensed Consolidated Statements of Operations. In connection with its investments, the Company has acquired assets subject to loan programs designed to encourage housing development. The proceeds from these loans are governed by restrictive covenants. For certain housing development loans, so long as the Company remains in compliance with the covenants and program requirements, the loans will be forgiven in equal annual installments until the loans are discharged in full. The Company treats these loans as deferred income and records them as a component of Other liabilities on the Company’s Condensed Consolidated Balance Sheets. As of September 30, 2021 and December 31, 2020, deferred income related to these loans amounted to $5.2 million and $5.8 million, respectively. As the loan balances are reduced during the compliance period, the Company will record income associated with the discharge of the loans as a component of Other revenue on the Company’s Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2021, Other revenue related to these loans amounted to $0.2 million and $0.6 million, respectively. For the three and nine months ended September 30, 2020, Other revenue related to these loans amounted to $0.2 million and $0.6 million, respectively. Other revenues and interest income are recorded on an accrual basis. | Revenue Recognition The Company commences revenue recognition on its leases based on a number of factors, including the initial determination that the contract is or contains a lease. Generally, all of the Company’s contracts are, or contain leases, and therefore revenue is recognized when the lessee takes possession of or controls the physical use of the leased assets. In most instances this occurs on the lease commencement date. At the inception or acquisition of a lease, including new leases that arise from amendments, the Company assesses the terms and conditions of the lease to determine the proper lease classification. The Company adopted the provisions of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) and related ASUs subsequently issued (collectively, “ASC 842”) as of January 1, 2019. A lease is classified as an operating lease if none of the following criteria are met: (i) ownership transfers to the lessee at the end of the lease term, (ii) the lessee has a purchase option that is reasonably expected to be exercised, (iii) the lease term is for a major part of the economic life of the leased property, (iv) the present value of the future lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the leased property, and (v) the leased property is of such a specialized nature that it is expected to have no future alternative use to the Company at the end of the lease term. If one or more of these criteria are met, the lease will generally be classified as a sales-type lease, unless the lease contains a residual value guarantee from a third party other than the lessee, in which case it would be classified as a direct financing lease under certain circumstances in accordance with ASC 842. The Company’s rental revenue primarily consists of fixed contractual base rent arising from tenant leases at the Company’s properties under operating leases. Revenue under operating leases that are deemed probable of collection, is recognized as revenue on a straight-line basis over the non-cancelable terms of the related leases. For leases that have fixed and measurable rent escalations, the difference between such rental income earned and the cash rent due under the provisions of the lease is recorded in the Company’s Consolidated Balance Sheets. The Company’s Hotel revenue consists of room revenue and food and beverage revenue. Room revenue is recognized when the related room is occupied and other hotel revenue is recognized when the service is rendered. For leases that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. Certain of the Company’s contracts contain nonlease components (e.g., charges for management fees, common area maintenance, and reimbursement of third-party maintenance expenses) in addition to lease components (i.e., monthly rental charges). Services related to nonlease components are provided over the same period of time as, and billed in the same manner as, monthly rental charges. The Company elected to apply the practical expedient available under ASC 842, for all classes of assets, not to segregate the lease components from the nonlease components when accounting for operating leases. Since the lease component is the predominant component under each of these leases, combined revenues from both the lease and nonlease components are accounted for in accordance with ASC 842 and reported as Rental revenues in the Company’s Consolidated Statements of Operations. In connection with its investments, the Company has utilized loan programs designed to encourage housing development. The proceeds from these loans are governed by restrictive covenants. For certain housing development loans, so long as the Company remains in compliance with the covenants and program requirements, the loans will be forgiven in equal annual installments until the loans are discharged in full. The Company treats these loans as deferred income and records them as a component of Accounts payable, accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. As of December 31, 2020 and 2019, deferred income related to these loans amounted to $5.8 million and $6.6 million, respectively. As the loan balances are reduced during the compliance period, the Company will record income associated with the discharge of the loans as a component of Other revenue on the Company’s Consolidated Statements of Operations. For the year ended December 31, 2020 and 2019, Other revenue related to these loans amounted to $0.8 million and $1.5 million, respectively. Other revenues and interest income are recorded on an accrual basis. |
Organization and Offering Expenses | Organization and Offering Expenses Organization costs are expensed as incurred and recorded as a component of General and administrative expenses on the Company’s Condensed Consolidated Statements of Operations, and offering costs are charged to equity as such amounts are incurred. The Advisor advanced $7.3 million of organization and offering expenses on behalf of the Company in connection with the Initial Public Offering (including legal, accounting, and other expenses attributable to the organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) through December 21, 2019, the first anniversary of the date on which the proceeds from escrow were released. The Company reimburses the Advisor for all such advanced expenses ratably over a 60-month period following December 21, 2019. These organization and offering costs are recorded as a component of Due to affiliates on the Company’s Condensed Consolidated Balance Sheets. Starwood Capital, L.L.C. (the “Dealer Manager”), a registered broker-dealer affiliated with the Advisor, serves as the dealer manager for the Company’s public offerings. The Dealer Manager is entitled to receive selling commissions and dealer manager fees based on the transaction price of each applicable class of shares sold in the primary offering. The Dealer Manager is also entitled to receive a stockholder servicing fee based on the aggregate net asset value (“NAV”) of the Company’s outstanding Class T shares, Class S shares, and Class D shares. The following table details the selling commissions, dealer manager fees, and stockholder servicing fees for each applicable share class as of September 30, 2021: Common Stock Class T Common Stock Class S Common Stock Class D Common Stock Class I Selling commissions and dealer manager fees up to 3.5 % up to 3.5 % up to 1.5 % — Stockholder servicing fee (% of NAV) 0.85 % 0.85 % 0.25 % — For Class T shares sold in the primary offering, investors will pay upfront selling commissions of up to 3.0% of the transaction price and upfront dealer manager fees of 0.5% of the transaction price, however such amounts may vary at certain participating broker-dealers, provided that the sum will not exceed 3.5% of the transaction price. For Class S shares sold in the primary offering, investors will pay upfront selling commissions of up to 3.5% of the transaction price. For Class D shares sold in the primary offering, investors will pay upfront selling commissions of up to 1.5% of the transaction price. Prior to February 4, 2020, no upfront selling commissions were paid on Class D shares. The Dealer Manager is entitled to receive stockholder servicing fees of 0.85% per annum of the aggregate NAV for Class T shares and Class S shares. For Class T shares, such stockholder servicing fee includes, an advisor stockholder servicing fee of 0.65% per annum, and a dealer stockholder servicing fee of 0.20% per annum, of the aggregate NAV for the Class T shares, however, with respect to Class T shares sold through certain participating broker-dealers, the advisor stockholder servicing fee and the dealer stockholder servicing fee may be other amounts, provided that the sum of such fees will always equal 0.85% per annum of the NAV of such shares. The Class D shares will incur a stockholder servicing fee equal to 0.25% per annum of the aggregate NAV for the Class D shares. There is no stockholder servicing fee with respect to Class I shares. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Follow-on Public Offering, which provide, among other things, for the re-allowance of the full amount of the selling commissions and dealer manager fees received and all or a portion of the stockholder servicing fees to such selected dealers. The Company will cease paying the stockholder servicing fee with respect to any Class T share, Class S share or Class D share sold in the primary offering at the end of the month in which the total selling commissions, dealer manager fees and stockholder servicing fees paid with respect to the shares held by such stockholder within such account would exceed 8.75% (or, in the case of Class T shares sold through certain participating broker-dealers, a lower limit as set forth in any applicable agreement between the Dealer Manager and a participating broker-dealer) of the gross proceeds from the sale of such share (including the gross proceeds of any shares issued under the Company’s distribution reinvestment plan with respect thereto). The Company will accrue the full cost of the stockholder servicing fee as an offering cost at the time each Class T, Class S and Class D share is sold during the primary offering. As of September 30, 2021 and December 31, 2020, the Company had accrued $227.4 million and $73.2 million, respectively, of stockholder servicing fees related to shares sold and recorded such amount as a component of Due to affiliates on the Company’s Condensed Consolidated Balance Sheets. | Organization and Offering Expenses Organization costs are expensed as incurred and recorded as a component of General and administrative expenses on the Company’s Consolidated Statements of Operations and offering costs are charged to equity as such amounts are incurred. The Advisor advanced $7.3 million of 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 December 21, 2019, the first anniversary of the date on which the proceeds from escrow were released. The Company reimburses the Advisor for all such advanced expenses ratably over a 60 month period following December 21, 2019. These organization and offering costs are recorded as a component of Due to affiliates on the Company’s Consolidated Balance Sheets as of December 31, 2020 and 2019. Starwood Capital, L.L.C. (the “Dealer Manager”), a registered broker-dealer affiliated with the Advisor, serves as the dealer manager for the Offering. The Dealer Manager is entitled to receive selling commissions and dealer manager fees based on the transaction price of each applicable class of shares sold in the primary offering. The Dealer Manager is also entitled to receive a stockholder servicing fee based on the aggregate net asset value (“NAV”) of the Company’s outstanding Class T shares, Class S shares and Class D shares. The following table details the selling commissions, dealer manager fees, and stockholder servicing fees for each applicable share class as of December 31, 2020: Class T Shares Class S Shares Class D Shares Class I Shares Selling commissions and dealer manager fees (% of transaction price) up to 3.5% up to 3.5% up to 1.5% — Stockholder servicing fee (% of NAV) 0.85% 0.85% 0.25% — For Class S shares sold in the primary offering, investors will pay upfront selling commissions of up to 3.5% of the transaction price. For Class T shares sold in the primary offering, investors will pay upfront selling commissions of up to 3.0% of the transaction price and upfront dealer manager fees of 0.5% of the transaction price, however such amounts may vary at certain participating broker-dealers, provided that the sum will not exceed 3.5% of the transaction price. For Class D shares sold in the primary offering, investors will pay upfront selling commissions of up to 1.5% of the transaction price. Prior to February 4, 2020, no upfront selling commissions were paid on Class D shares. The Dealer Manager is entitled to receive stockholder servicing fees of 0.85% per annum of the aggregate NAV for Class S shares and Class T shares. For Class T shares such stockholder servicing fee includes, an advisor stockholder servicing fee of 0.65% per annum, and a dealer stockholder servicing fee of 0.20% per annum, of the aggregate NAV for the Class T shares, however, with respect to Class T shares sold through certain participating broker-dealers, the advisor stockholder servicing fee and the dealer stockholder servicing fee may be other amounts, provided that the sum of such fees will always equal 0.85% per annum of the NAV of such shares. For Class D shares the Dealer Manager is entitled to a stockholder servicing fee equal to 0.25% per annum of the aggregate NAV for the Class D shares. There is no stockholder servicing fee with respect to Class I shares. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Offering, which provide, among other things, for the re-allowance of the full amount of the selling commissions and dealer manager fees received and all or a portion of the stockholder servicing fees to such selected dealers. The Company will cease paying the stockholder servicing fee with respect to any Class T share, Class S share or Class D share sold in the primary offering at the end of the month in which the total selling commissions, dealer manager fees and stockholder servicing fees paid with respect to the shares held by such stockholder within such account would exceed 8.75% (or, in the case of Class T shares sold through certain participating broker-dealers, a lower limit as set forth in any applicable agreement between the Dealer Manager and a participating broker-dealer) of the gross proceeds from the sale of such share (including the gross proceeds of any shares issued under the Company’s distribution reinvestment plan with respect thereto). The Company will accrue the full cost of the stockholder servicing fee as an offering cost at the time each Class T, Class S and Class D share is sold during the primary offering. As of December 31, 2020 and 2019, the Company had accrued $73.2 million and $44.1 million, respectively, of stockholder servicing fees related to shares sold and recorded such amount as a component of Due to affiliates on the Company’s Consolidated Balance Sheets. |
Income Taxes | Income Taxes The Company elected to be taxed as a REIT under the Internal Revenue Code (the “Code”), for federal income tax purposes, beginning with its taxable year ended December 31, 2019. As long as the Company qualifies for taxation as a REIT, it generally will not be subject to U.S. federal corporate income tax on its net taxable income that is currently distributed to its stockholders. A REIT is subject to a number of organizational and operational requirements, including a requirement that it currently distributes at least 90% of its REIT taxable income (subject to certain adjustments) to its stockholders. If the Company fails to qualify as a REIT in a taxable year, without the benefit of certain relief provisions, it will be subject to federal and state income tax on its taxable income at regular corporate tax rates. Even if the Company qualifies for taxation as a REIT, it may also be subject to certain federal, state, and local taxes on its income and assets, including (1) taxes on any undistributed income, (2) taxes related to its taxable REIT subsidiaries (“TRSs”) and (3) certain state or local income taxes. The Company has formed wholly owned subsidiaries to function as TRSs and filed TRS elections, together with such subsidiaries, with the Internal Revenue Service. 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. The TRSs are subject to taxation at the federal, state and local levels, as applicable, at the regular corporate tax rates. The Company accounts for applicable income taxes by utilizing the asset and liability method. As such, the Company records deferred tax assets and liabilities for the future tax consequences resulting from the difference between the carrying value of existing assets and liabilities and their respective tax basis. A valuation allowance for deferred tax assets is provided if the Company believes all or some portion of the deferred tax asset may not be realized. For the three and nine months ended September 30, 2021, the Company recognized an income tax expense of $0.1 million and $0.2 million, respectively, within Other expense, net on the Company’s Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2020, the Company recognized an income tax expense of $0.03 million and benefit of $0.04 million, respectively, within Other expense on the Company’s Condensed Consolidated Statements of Operations. As of September 30, 2021 and December 31, 2020, the Company recorded a $9.8 million deferred tax liability comprised of a $1.2 million deferred tax liability driven by its hospitality investments and $8.6 million of assumed capital gains from a triple net lease acquisition and $1.2 million, respectively, within Other liabilities on the Company’s Condensed Consolidated Balance Sheets. | Income Taxes The Company elected to be taxed as a REIT under the Internal Revenue Code (the “Code”), for federal income tax purposes, beginning with its taxable year ended December 31, 2019. As long as the Company qualifies for taxation as a REIT, it generally will not be subject to U.S. federal corporate income tax on its net taxable income that is currently distributed to its stockholders. A REIT is subject to a number of organizational and operational requirements, including a requirement that it currently distributes at least 90% of its REIT taxable income (subject to certain adjustments) to its stockholders. If the Company fails to qualify as a REIT in a taxable year, without the benefit of certain relief provisions, it will be subject to federal and state income tax on its taxable income at regular corporate tax rates. Even if the Company qualifies for taxation as a REIT, it may also be subject to certain federal, state, and local taxes on its income and assets, including (1) taxes on any undistributed income, (2) taxes related to its TRSs and (3) certain state or local income taxes. The Company has formed wholly owned subsidiaries to function as TRSs and filed TRS elections, together with such subsidiaries, with the Internal Revenue Service. 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. The TRSs are subject to taxation at the federal, state and local levels, as applicable, at the regular corporate tax rates. The Company accounts for applicable income taxes by utilizing the asset and liability method. As such, the Company records deferred tax assets and liabilities for the future tax consequences resulting from the difference between the carrying value of existing assets and liabilities and their respective tax basis. A valuation allowance for deferred tax assets is provided if the Company believes all or some portion of the deferred tax asset may not be realized. For the years ended December 31, 2020 and 2019, the Company recognized an income tax expense of $1.2 million and $0.1 million, respectively, within Other (expense) income, net on the Company’s Consolidated Statements of Operations. As of December 31, 2020 and 2019, the Company recorded a net deferred tax liability of $1.2 million and $0.1 million, respectively, due to its hotel investments within Accounts payable, accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. |
Net Loss per Share | Net Loss per Share Basic net loss per share is computed by dividing net loss attributable to stockholders for the period by the weighted average number of common shares outstanding during the period. All classes of common stock are allocated net loss at the same rate per share and receive the same gross distribution per share. Diluted loss per share is computed by dividing net loss attributable to stockholders for the period by the weighted average number of common shares and common share equivalents outstanding (unless their effect is antidilutive) for the period. There are no common share equivalents outstanding that would have a dilutive effect as a result of the net loss, and accordingly, the weighted average number of common shares outstanding is identical for the periods ended September 30, 2021 and 2020, for both basic and diluted shares. The restricted stock grants of Class I shares held by the Company’s independent directors are not considered to be participating securities because they do not contain non-forfeitable rights to distributions. As a result, there is no impact of these restricted stock grants on basic and diluted net loss per common share until the restricted stock grants have fully vested. | Net Loss per Share Basic net loss per share is computed by dividing net loss attributable to stockholders for the period by the weighted average number of common shares outstanding during the period. All classes of common stock are allocated net loss at the same rate per share and receive the same gross distribution per share. Diluted loss per share is computed by dividing net loss attributable to stockholders for the period by the weighted average number of common shares and common share equivalents outstanding (unless their effect is antidilutive) for the period. There are no common share equivalents outstanding that would have a dilutive effect as a result of the net loss, and accordingly, the weighted average number of common shares outstanding is identical for both basic and diluted shares for the years ended December 31, 2020 and 2019. The restricted stock grants of Class I shares held by the Company’s independent directors are not considered to be participating securities because they do not contain non-forfeitable rights to distributions. As a result, there is no impact of these restricted stock grants on basic and diluted net loss per common share until the restricted stock grants have fully vested. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Topic 740, Income Taxes In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses Leases—Lessor In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820)—Disclosure Framework,” which adds new disclosure requirements and modifies or eliminates existing disclosure requirements of ASC 820. This ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2019 and was adopted as of January 1, 2020. The Company has determined the application of this ASU does not materially impact the Company. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The amendments simplify the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, “Income Taxes” and also improve consistent application by clarifying and amending existing guidance. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, with the amendments to be applied on a retrospective, modified retrospective or prospective basis, depending on the specific amendment. The Company is currently evaluating the impact of adopting this guidance. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions to GAAP requirements for modifications on debt instruments, leases, derivatives, and other contracts, related to the expected market transition from LIBOR, and certain other floating rate benchmark indices, to alternative reference rates. ASU 2020-04 generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination. The guidance in ASU 2020-04 is optional and may be elected over time, through December 31, 2022, as reference rate reform activities occur. Once ASU 2020-04 is elected, the guidance must be applied prospectively for all eligible contract modifications. The Company has not adopted any of the optional expedients or exceptions as of December 31, 2020, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve. In April 2020, FASB staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. The Lease Modification Q&A allows the Company, if certain criteria have been met, to elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. The Company has elected to apply such relief to avoid performing a lease-by-lease analysis for any potential lease concessions granted as relief due to the COVID-19 pandemic that result in the cash flows remaining under the lease to be substantially the same or less. The Lease Modification Q&A did not have a material impact on the Company’s consolidated financial statements as of and for the year ended December 31, 2020. However, its future impact to the Company is dependent upon the extent of lease concessions granted to tenants as a result of the COVID-19 pandemic in future periods and the elections made by the Company at the time of entering into such concessions. It is not possible at this time to accurately project the nature or extent of any such possible concessions. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Summary 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 35 - 40 years Building and land improvements 5 - 15 years Furniture, fixtures and equipment 5 - 7 years Lease intangibles and leasehold improvements Shorter of useful life or lease term | 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 35 - 40 years Building and land improvements 5 - 15 years Furniture, fixtures and equipment 5 - 7 years Lease intangibles and leasehold improvements Shorter of useful life or lease term |
Summary of Assets And Liabilities Measured At Fair Value 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, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Investments in real estate debt $ — $ 478,669 $ 485,406 $ 964,075 $ — $ 218,225 $ — $ 218,225 Equity securities 173,732 — — 173,732 — — — — Derivatives — 62,344 — 62,344 — 1,410 — 1,410 Total $ 173,732 $ 541,013 $ 485,406 $ 1,200,151 $ — $ 219,635 $ — $ 219,635 Liabilities: Derivatives $ — $ 952 $ — $ 952 $ — $ 5,167 $ — $ 5,167 Total $ — $ 952 $ — $ 952 $ — $ 5,167 $ — $ 5,167 | |
Summary of Assets Measured At Fair Value On Recurring Basis | The following table details the Company’s assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Investments in Balance as of December 31, 2020 $ — Purchases 504,540 Included in net income Foreign exchange (19,134 ) Unrealized gain (loss) — Balance as of September 30, 2021 $ 485,406 | |
Summary of Quantitative Inputs and Assumptions Used for Items Categorized in Level 3 of Fair Value | The following table contains the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy ($ in thousands): September 30, 2021 Fair Value Valuation Technique Unobservable Inputs Weighted Impact to Valuation from an Investments in Real Estate Debt $ 485,406 Transacted value Cost N/A N/A | |
Schedule of Selling Commissions, Dealer Manager Fees And Stockholder Servicing | The following table details the selling commissions, dealer manager fees, and stockholder servicing fees for each applicable share class as of September 30, 2021: Common Stock Class T Common Stock Class S Common Stock Class D Common Stock Class I Selling commissions and dealer manager fees up to 3.5 % up to 3.5 % up to 1.5 % — Stockholder servicing fee (% of NAV) 0.85 % 0.85 % 0.25 % — | The following table details the selling commissions, dealer manager fees, and stockholder servicing fees for each applicable share class as of December 31, 2020: Class T Shares Class S Shares Class D Shares Class I Shares Selling commissions and dealer manager fees (% of transaction price) up to 3.5% up to 3.5% up to 1.5% — Stockholder servicing fee (% of NAV) 0.85% 0.85% 0.25% — |
Investments (Tables)
Investments (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Real Estate [Abstract] | ||
Schedule of Investments in Real Estate, Net | Investments in real estate, net consisted of the following ($ in thousands): September 30, 2021 December 31, 2020 Building and building improvements $ 7,498,062 $ 3,860,297 Land and land improvements 1,379,087 689,107 Furniture, fixtures and equipment 129,093 76,808 Right of use asset - operating lease (1) 105,236 101,382 Total 9,111,478 4,727,594 Accumulated depreciation and amortization (272,694 ) (130,540 ) Investments in real estate, net $ 8,838,784 $ 4,597,054 (1) Refer to Note 13 for additional details on the Company’s leases. | Investments in real estate, net consisted of the following ($ in thousands): December 31, 2020 December 31, 2019 Building and building improvements $ 3,860,297 $ 1,455,204 Land and land improvements 689,107 322,520 Furniture, fixtures and equipment 76,808 46,268 Right of use asset—operating lease (1) 101,382 — Total 4,727,594 1,823,992 Accumulated depreciation and amortization (130,540 ) (25,948 ) Investments in real estate, net $ 4,597,054 $ 1,798,044 (1) Refer to Note 13 for additional details on the Company’s leases. |
Schedule of Details of Properties Acquired | The following table provides details of the properties acquired during the nine months ended September 30, 2021 ($ in thousands): Segments Number of Number of Properties Sq. Ft. Purchase (1) Multifamily properties 8 37 10,861 units $ 2,692,598 Industrial properties 5 60 10.38 sq. ft. 1,560,968 Office properties 1 3 0.46 sq. ft. 135,242 Other properties 1 1 0.14 sq. ft. 94,593 15 101 $ 4,483,401 (1) Purchase price is inclusive of acquisition-related costs. | The following table provides further details of the properties acquired during the years ended December 31, 2020 and 2019 ($ in thousands): Investment Ownership Interest (1) Number of Properties Location Sector Acquisition Date Real Estate Acquisition (2) Florida Multifamily Portfolio 100% 4 Jacksonville/Naples, FL Multifamily January 2019 $ 104,049 U.S. Select Service Portfolio 100% 8 FL, CO, TN, OH, AR Hotel January 2019 232,198 Savannah Multifamily 100% 1 Savannah, GA Multifamily January 2019 36,847 Phoenix Multifamily 100% 1 Mesa, AZ Multifamily January 2019 46,779 Florida Office Portfolio 97% 11 Jacksonville, FL Office May 2019 233,287 Concord Park Apartments 100% 1 Fort Meade, MD Multifamily July 2019 88,203 Columbus Mixed Use Portfolio 96% 5 Columbus, OH Multifamily/Office September 2019 279,513 Cascades Apartments 100% 1 Charlotte, NC Multifamily October 2019 109,824 Thornton Apartments 100% 1 Alexandria, VA Multifamily October 2019 181,678 Exchange on Erwin 100% 3 Durham, NC Multifamily/Medical November 2019 112,385 Midwest Industrial Portfolio 95% 33 IL, IN, OH, WI Industrial November 2019 322,451 The Griffin 100% 1 Scottsdale, AZ Multifamily December 2019 96,634 Avida Apartments 100% 1 Salt Lake City, UT Multifamily December 2019 87,381 Southeast Affordable Housing Portfolio 100% 22 Various (3) Multifamily Various 2020 597,160 Nashville Office 100% 1 Nashville, TN Office February 2020 265,404 Barlow Building 100% 1 Chevy Chase, MD Medical Office March 2020 162,212 60 State Street 100% 1 Boston, MA Office March 2020 613,052 Highlands Portfolio 96% 3 Columbus, OH Multifamily June 2020 103,228 The Baxter Decatur 100% 1 Atlanta, GA Multifamily August 2020 82,199 Airport Logistics Park 100% 6 Nashville, TN Industrial September 2020 62,806 Mid-Atlantic Affordable Housing Portfolio 100% 28 Various (4) Multifamily October 2020 537,899 Marshfield Industrial Portfolio 100% 4 Baltimore, MD Industrial October 2020 166,800 Florida Affordable Housing Portfolio II 100% 4 Jacksonville, FL Multifamily October 2020 114,492 Acadia 100% 1 Ashburn, VA Multifamily December 2020 191,372 Kalina Way 100% 1 Salt Lake City, UT Multifamily December 2020 84,281 144 $ 4,912,134 (1) Certain of the investments made by the Company provide the seller or the other partner a profits interest based on certain internal rate of return hurdles being achieved. Such investments are consolidated by the Company and any profits interest due to the other partner is reported within non-controlling interests. (2) Purchase price is inclusive of acquisition-related costs. (3) The Southeast Affordable Housing Portfolio is primarily concentrated in Jacksonville, FL (26% of units), Orlando, FL (25%), Newport News, VA (11%), Tucson, AZ (8%), Charlotte, NC (6%) and Raleigh, NC (6%). (4) The Mid-Atlantic Affordable Portfolio is primarily concentrated in Washington, D.C. (35% of units), Norfolk/Newport, VA (22%) and Raleigh-Durham, NC (7%). |
Schedule of Purchase Price Allocation of Properties | The following table summarizes the purchase price allocation for the properties acquired during the nine months ended September 30, 2021 ($ in thousands): Amount Building and building improvements $ 3,588,114 Land and land improvements 685,437 Furniture, fixtures and equipment 49,824 In-place lease intangibles 125,655 Above-market lease intangibles 7,406 Below-market lease intangibles (12,741 ) Above-market ground lease intangibles (2,292 ) Other intangibles 12,376 Total purchase price (1) $ 4,453,779 Assumed mortgage notes (156,515 ) Non-controlling interest (3,349 ) Net purchase price $ 4,293,915 (1) Purchase price excludes acquisition-related costs of $29.6 million. The weighted-average amortization periods for the acquired in-place lease intangibles, above-market lease intangibles, below-market lease intangibles and above-market ground lease intangibles for the properties acquired during the nine months ended September 30, 2021 were four years, six years, five years and 32 years, respectively. | The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2020 ($ in thousands): 60 State Street Southeast Affordable Housing Portfolio Mid-Atlantic Affordable Housing Portfolio Nashville Office Acadia All Other Total Building and building improvements $ 479,534 $ 459,398 $ 430,271 $ 228,180 $ 167,516 $ 626,162 $ 2,391,061 Land and land improvements 473 114,954 85,327 21,636 18,337 101,529 342,256 Furniture, fixtures and equipment — 8,269 7,816 — 2,224 9,721 28,030 Below-market ground lease (1) 95,201 — — — — — 95,201 In-place lease intangibles 47,736 8,118 7,886 18,791 2,073 29,795 114,399 Above-market lease intangibles 10,369 — — 410 — 5,910 16,689 Below-market lease intangibles (19,063 ) — — (4,917 ) — (5,217 ) (29,197 ) Total purchase price (2) $ 614,250 $ 590,739 $ 531,300 $ 264,100 $ 190,150 $ 767,900 $ 2,958,439 Non-controlling interest — — — — — (1,178 ) (1,178 ) Net purchase price $ 614,250 $ 590,739 $ 531,300 $ 264,100 $ 190,150 $ 766,722 $ 2,957,261 (1) The below-market ground lease value was recorded as a component of the Right of use asset – operating leases on the Company’s Consolidated Balance Sheet. Refer to Note 13 for additional details on the Company’s leases. (2) Purchase price does not include acquisition related costs of $22.5 million. The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2019 ($ in thousands): Midwest Industrial Portfolio Florida Office Portfolio Thornton Apartments U.S. Select Service Portfolio Columbus Mixed Use Portfolio All Other Total Building and building improvements $ 233,915 $ 158,206 $ 144,345 $ 164,266 $ 214,109 $ 521,414 $ 1,436,255 Land and land improvements 60,045 45,809 30,472 42,256 17,262 125,014 320,858 Furniture, fixtures and equipment — — 2,581 22,377 9,531 10,769 45,258 In-place lease intangibles 24,061 26,286 2,776 — 11,534 12,948 77,605 Above-market lease intangibles 2,839 1,544 — — 90 909 5,382 Below-market lease intangibles (2,585 ) (846 ) — — (2,549 ) (1,059 ) (7,039 ) Other intangibles 1,350 — — 101 25,023 2,219 28,693 Total purchase price (1) $ 319,625 $ 230,999 $ 180,174 $ 229,000 $ 275,000 $ 672,214 $ 1,907,012 Assumed mortgage notes (2) — — — (84,013 ) (107,731 ) (136,920 ) (328,664 ) Non-controlling interest (5,480 ) (2,880 ) — — (3,363 ) — (11,723 ) Net purchase price $ 314,145 $ 228,119 $ 180,174 $ 144,987 $ 163,906 $ 535,294 $ 1,566,625 (1) Purchase price does not include acquisition related costs of $24.2 million. (2) Includes deferred income reported as a component of Accounts payable, accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. See Note 2 for additional details on the Company’s deferred income. See Note 6 for additional details on the Company’s mortgage notes. |
Estimated Future Amortization on the Company's Below-Market Ground Lease | The estimated future amortization on the Company’s below-market ground lease for each of the next five years and thereafter as of December 31, 2020 is as follows ($ in thousands): Year Below-market Ground Lease 2021 $ 2,036 2022 2,036 2023 2,036 2024 2,036 2025 2,036 Thereafter 83,492 Total $ 93,672 |
Intangibles (Tables)
Intangibles (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Summary of 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, December 31, Intangible assets: (1) In-place lease intangibles $ 319,651 $ 194,003 Above-market lease intangibles 29,303 22,132 Other 43,482 31,019 Total intangible assets 392,436 247,154 Accumulated amortization: In-place lease amortization (110,395 ) (60,142 ) Above-market lease amortization (6,858 ) (3,506 ) Other (5,785 ) (3,650 ) Total accumulated amortization (123,038 ) (67,298 ) Intangible assets, net $ 269,398 $ 179,856 Intangible liabilities: (2) Below-market lease intangibles $ 48,859 $ 36,190 Total intangible liabilities 48,859 36,190 Accumulated amortization: Below-market lease amortization (7,551 ) (3,534 ) Total accumulated amortization (7,551 ) (3,534 ) Intangible liabilities, net $ 41,308 $ 32,656 (1) Included in Other assets on the Company’s Condensed Consolidated Balance Sheets. (2) Included in Other liabilities on the Company’s Condensed Consolidated Balance Sheets. | The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities consisted of the following ($ in thousands): December 31, 2020 December 31, 2019 Intangible assets: (1) In-place lease intangibles $ 194,003 $ 77,311 Above-market lease intangibles 22,132 5,387 Other 31,019 30,801 Total intangible assets 247,154 113,499 Accumulated amortization: In-place lease amortization (60,142 ) (12,341 ) Above-market lease intangibles (3,506 ) (318 ) Other (3,650 ) (635 ) Total accumulated amortization (67,298 ) (13,294 ) Intangible assets, net $ 179,856 $ 100,205 Intangible liabilities: (2) Below-market lease intangibles $ 36,190 $ 7,032 Accumulated amortization (3,534 ) (331 ) Intangible liabilities, net $ 32,656 $ 6,701 (1) Included in Other assets on the Company’s Consolidated Balance Sheets. (2) Included in Accounts payable, accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. |
Summary of Estimated Future Amortization on Intangibles | The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter as of September 30, 2021 is as follows ($ in thousands): In-place Lease Intangibles Above-market Lease Intangibles Other Below-market Lease Intangibles 2021(remaining) $ 22,387 $ 1,264 $ 820 $ (1,541 ) 2022 52,405 4,580 3,569 (6,551 ) 2023 34,753 4,080 3,484 (6,011 ) 2024 26,027 2,916 3,470 (5,005 ) 2025 21,120 2,279 3,338 (4,115 ) Thereafter 52,564 7,326 23,016 (18,085 ) $ 209,256 $ 22,445 $ 37,697 $ (41,308 ) | The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter as of December 31, 2020 is as follows ($ in thousands): In-place Lease Intangibles Above-market Lease Intangibles Other Below-market Lease Intangibles 2021 $ 39,432 $ 3,782 $ 2,747 $ (3,944 ) 2022 22,828 3,301 2,738 (3,662 ) 2023 17,289 2,868 2,653 (3,354 ) 2024 12,885 1,883 2,639 (3,023 ) 2025 10,138 1,492 2,507 (2,740 ) Thereafter 31,289 5,300 14,085 (15,933 ) $ 133,861 $ 18,626 $ 27,369 $ (32,656 ) |
Investments in Real Estate-Re_2
Investments in Real Estate-Related Securities (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of Investments [Abstract] | ||
Summary of Investments in Real Estate-Related Debt Securities | The following tables detail the Company’s investments in real estate debt as of September 30, 2021 and December 31, 2020 ($ in thousands): September 30, 2021 Type of Security/Loan Number of Positions Weighted Average Coupon Weighted Average Maturity Date (1) Cost Basis Fair Value RMBS 51 3.12 % November 7, 2045 $ 173,051 $ 177,472 CMBS—floating 4 L + 3.46 % July 15, 2038 296,928 298,661 CMBS—fixed 1 6.26 % July 25, 2039 2,700 2,536 Total real estate securities 56 3.33 % March 15, 2041 472,679 478,669 Term loan (2) 1 L + 5.35 % February 26, 2026 504,540 485,406 Total investments in real estate debt 57 4.39 % June 2, 2033 $ 977,219 $ 964,075 December 31, 2020 Type of Security Number of Positions Weighted Average Coupon Weighted Average Maturity Date (1) Cost Basis Fair Value RMBS 55 3.22 % March 22, 2047 $ 213,863 $ 215,358 CMBS 1 6.26 % July 25, 2039 3,066 2,867 Total investments in real estate debt 56 $ 216,929 $ 218,225 (1) Weighted average maturity date is based on the fully extended maturity date of the underlying collateral. (2) On February 26, 2021, the Company provided financing in the form of a term loan to an unaffiliated entity in connection with its acquisition of a premier United Kingdom holiday company. The loan is in the amount of £360 million and has an initial term of five years, with a two-year extension option. The Company’s investments in real estate debt include CMBS collateralized by properties owned by Starwood-advised investment vehicles. The following table details the Company’s affiliate investments in real estate debt ($ in thousands): Fair Value September 30, 2021 December 31, 2020 CMBS $ 298,661 $ — Total $ 298,661 $ — | The following tables detail the Company’s investments in real estate-related securities as of December 31, 2020 and 2019 ($ in thousands): December 31, 2020 Instrument Number of Positions Weighted Average Coupon (1) Weighted Average Maturity Date (2) Cost Basis Fair Value RMBS 55 3.22 % March 22, 2047 $ 213,863 $ 215,358 CMBS 1 6.26 % July 25, 2039 3,066 2,867 56 $ 216,929 $ 218,225 December 31, 2019 Instrument Number of Positions Weighted Average Coupon (1) Weighted Average Maturity Date (2) Cost Basis Fair Value RMBS 59 3.76 % October 17, 2040 $ 235,405 $ 236,844 CLO 12 6.12 % May 11, 2031 29,302 29,236 CMBS 4 3.73 % March 13, 2037 11,473 11,571 75 $ 276,180 $ 277,651 (1) As of December 31, 2020, the Company’s RMBS investments had floating rate coupons ranging from 0.00% to 7.95% and its CMBS investment had a floating rate coupon of 6.26%. (2) Weighted average maturity date is based on the fully extended maturity date of the underlying collateral. |
Mortgage Notes and Revolving _2
Mortgage Notes and Revolving Credit Facility (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Summary of Mortgage Notes and Revolving Credit Facility Secured by Company's Properties | The following table is a summary of the mortgage notes and revolving credit facility secured by the Company’s properties as of September 30, 2021 and December 31, 2020 ($ in thousands): Principal Balance Outstanding (3) Indebtedness Weighted Average Interest Rate (1) Weighted Average Maturity Date (2) Maximum Facility Size September 30, 2021 December 31, 2020 Fixed rate loans Fixed rate mortgages 3.08 % 9/7/2030 N/A $ 2,693,436 $ 2,236,290 Total fixed rate loans 2,693,436 2,236,290 Variable rate loans Floating rate mortgages L + 1.84 % 7/26/2024 N/A 3,092,387 886,594 Variable rate revolving credit facility (4) L + 2.00 % 10/21/2021 $ 200,000 — 172,800 Total variable rate loans 3,092,387 1,059,394 Total loans secured by the Company’s properties 5,785,823 3,295,684 Deferred financing costs, net (39,297 ) (17,208 ) Premium on assumed debt, net 612 286 Mortgage notes and revolving credit facility, net $ 5,747,138 $ 3,278,762 (1) The term “L” refers to the one-month LIBOR. As of September 30, 2021, one-month LIBOR was equal to 0.08%. (2) For loans where the Company, at its own discretion, has extension options, the maximum maturity date has been assumed. (3) The majority of the Company’s mortgages contain yield or spread maintenance provisions. (4) The Company’s revolving credit facility can be drawn upon to fund the acquisition of future real estate investments. During October 2021, the Company extended this facility to October 21, 2022 | The following table is a summary of the mortgage notes and revolving credit facility secured by the Company’s properties as of December 31, 2020 and 2019 ($ in thousands): Weighted Average Interest Rate (1) Weighted Average Maturity Date (2) Maximum Facility Size Principal Balance Outstanding (3) Indebtedness December 31, 2020 December 31, 2019 Fixed rate loans Fixed rate mortgages 3.11 % 2/3/2030 N/A $ 2,236,290 $ 1,004,423 Total fixed rate loans 2,236,290 1,004,423 Variable rate loans Floating rate mortgages L + 1.81 % 3/30/2025 N/A 886,594 240,599 Variable rate revolving credit facility (4) L + 2.00 % 10/21/2021 $ 200,000 172,800 — Total variable rate loans 1,059,394 240,599 Total loans secured by the Company’s properties 3,295,684 1,245,022 Deferred financing costs, net (17,208 ) (7,136 ) Discount on assumed debt, net 286 216 Mortgage notes and revolving credit facility, net $ 3,278,762 $ 1,238,102 (1) The term “L” refers to the one-month LIBOR. As of December 31, 2020, one-month LIBOR was equal to 0.14%. (2) For loans where the Company, at its own discretion, has extension options, the maximum maturity date has been assumed. (3) The majority of the Company’s mortgages contain yield or spread maintenance provisions. (4) The Company’s revolving credit facility can be drawn upon to fund the acquisition of future real estate investments. |
Summary of Future Principal Payment Under Company's Mortgage Notes and Revolving Credit Facility | The following table presents the future principal payments under the Company’s mortgage notes and revolving credit facility as of September 30, 2021 ($ in thousands): Year Amount 2021(remaining) $ 914 2022 51,689 2023 1,651,164 2024 483,255 2025 648,982 Thereafter 2,949,819 Total $ 5,785,823 | The following table presents the future principal payments under the Company’s mortgage notes and revolving credit facility as of December 31, 2020 ($ in thousands): Year Amount 2021 $ 175,901 2022 51,183 2023 3,931 2024 215,201 2025 647,091 Thereafter 2,202,377 Total $ 3,295,684 |
Secured Financings On Investm_2
Secured Financings On Investments In Real Estate Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Secured Financings On Investments In Real Estate Debt [Abstract] | |
Schedule of Secured Financings on Investments in Real Estate Debt Transactions | For financial statement purposes, the Company does not offset its secured financings on investments in real estate debt and securities lending transactions because the conditions for netting as specified by GAAP are not met. Although not offset on the Company’s Condensed Consolidated Balance Sheets, these transactions are summarized in the following tables ($ in thousands): September 30, 2021 Indebtedness Maturity Date Coupon Collateral Assets (1) Outstanding Balance Barclays RA 2/26/2026 L+2.50 % $ 485,406 $ 134,835 $ 485,406 $ 134,835 December 31, 2020 Indebtedness Weighted Average Maturity Date Weighted Average Coupon Collateral Assets (1) Outstanding Balance RMBS 3/17/2021 1.93 % $ 155,538 $ 105,804 CMBS 1/6/2021 2.10 % 2,867 2,450 $ 158,405 $ 108,254 (1) Represents the fair value of the Company’s investments in real estate debt. |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Repurchase Agreements [Abstract] | |
Summary of Repurchase Agreements And Securities Lending Transactions | For financial statement purposes, the Company does not offset its repurchase agreements and securities lending transactions because the conditions for netting as specified by GAAP are not met. Although not offset on the Company’s Consolidated Balance Sheets, these transactions are included in the following tables ($ in thousands): Weighted Average Maturity Date Weighted Average Coupon December 31, 2020 Security Interest Collateral Assets (1) Outstanding Balance RMBS 3/17/2021 1.93 % $ 155,538 $ 105,804 CMBS 1/6/2021 2.10 % 2,867 2,450 $ 158,405 $ 108,254 Weighted Average Coupon December 31, 2019 Security Interest Collateral Assets (1) Outstanding Balance RMBS 2.62 % $ 89,784 $ 74,876 CLO 4.71 % 7,962 6,159 $ 97,746 $ 81,035 (1) Represents the fair value of the Company’s investments in real estate-related securities. |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Other Assets And Other Liabilities [Abstract] | ||
Schedule of Components of Other Assets | The following table summarizes the components of Other assets ($ in thousands): September 30, 2021 December 31, 2020 Intangible assets, net $ 269,398 $ 179,856 Acquisition deposits 208,826 7 Equity securities 173,732 — Derivative instruments 62,344 1,410 Receivables 39,688 23,692 Prepaid expenses 10,716 4,047 Interest receivable 3,974 548 Deferred financing costs, net 3,772 1,268 Other 3,591 307 Total $ 776,041 $ 211,135 | The following table summarizes the components of other assets ($ in thousands): December 31, 2020 December 31, 2019 Intangible assets, net $ 179,856 $ 100,205 Receivables 23,692 6,735 Prepaid expenses 4,047 1,456 Derivative instruments 1,410 203 Deferred financing costs, net 1,268 674 Interest receivable 548 1,028 Acquisition deposits 7 3,050 Other 307 146 Total $ 211,135 $ 113,497 |
Schedule of Components of Accounts Payable, Accrued Expenses and Other Liabilities | The following table summarizes the components of Other liabilities ($ in thousands): September 30, 2021 December 31, 2020 Accounts payable and accrued expenses $ 49,699 $ 19,651 Real estate taxes payable 49,618 14,842 Intangible liabilities, net 41,308 32,656 Distributions payable 24,756 8,682 Tenant security deposits 21,095 9,842 Right of use liability—operating lease 12,514 6,390 Accrued interest expense 10,091 7,309 Deferred tax liability 9,764 1,229 Deferred income 7,323 11,111 Derivative instruments 952 5,167 Other 3,088 193 Total $ 230,208 $ 117,072 | The following table summarizes the components of accounts payable, accrued expenses, and other liabilities ($ in thousands): December 31, 2020 December 31, 2019 Intangible liabilities, net $ 32,656 $ 6,701 Accounts payable and accrued expenses 19,651 10,188 Real estate taxes payable 14,842 6,513 Deferred income 11,111 6,707 Tenant security deposits 9,842 3,547 Distributions payable 8,682 4,216 Accrued interest expense 7,309 1,993 Right of use liability— operating lease 6,390 — Derivative instruments 5,167 — Other 1,422 8,114 Total $ 117,072 $ 47,979 |
Equity and Redeemable Non-con_2
Equity and Redeemable Non-controlling Interest (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Schedule of Company's Authorized Capital | As of September 30, 2021, the Company had the authority to issue 3,100,000,000 shares of capital stock, consisting of the following: Classification Number of Shares Par Value Preferred Stock 100,000,000 $ 0.01 Class T Shares 500,000,000 $ 0.01 Class S Shares 1,000,000,000 $ 0.01 Class D Shares 500,000,000 $ 0.01 Class I Shares 1,000,000,000 $ 0.01 Total 3,100,000,000 | As of December 31, 2020, the Company had the authority to issue 1,100,000,000 shares of capital stock, consisting of the following: Classification Number of Shares Par Value Preferred Stock 100,000,000 $ 0.01 Class T Shares 250,000,000 $ 0.01 Class S Shares 250,000,000 $ 0.01 Class D Shares 250,000,000 $ 0.01 Class I Shares 250,000,000 $ 0.01 Total 1,100,000,000 |
Schedule of Common Stock Outstanding shares | The following table details the movement in the Company’s outstanding shares of common stock: Nine months ended September 30, 2021 Class T Class S Class D Class I Total December 31, 2020 2,463,182 46,431,661 2,847,097 39,152,913 90,894,853 Common stock shares issued 1,523,077 74,589,078 15,921,954 75,605,408 167,639,517 Distribution reinvestment plan shares issued 60,801 1,442,493 109,861 959,717 2,572,872 Common stock shares repurchased (37,422 ) (819,843 ) (35,754 ) (925,540 ) (1,818,559 ) Independent directors’ restricted stock grant (1) — — — 14,829 14,829 September 30, 2021 4,009,638 121,643,389 18,843,158 114,807,327 259,303,512 (1) The independent directors’ restricted stock grant represents $0.3 million of the annual compensation paid to the independent directors for the period ended September 30, 2021. Each grant is amortized over the one-year service period of such grant. The shares vested in August 2021. | The following table details the movement in the Company’s outstanding shares of common stock: Class T Class S Class D Class I Total January 1, 2018 — — — 10,000 10,000 Common stock shares issued 483 6,610,280 46,075 1,532,000 8,188,838 December 31, 2018 483 6,610,280 46,075 1,542,000 8,198,838 Common stock shares issued 1,401,818 19,176,803 1,584,566 14,448,819 36,612,006 Distribution reinvestment plan shares issued 10,262 383,218 22,453 122,455 538,388 Common stock shares repurchased — (5,507 ) — (4,843 ) (10,350 ) Independent directors’ restricted stock (1) — — — 5,853 5,853 December 31, 2019 1,412,563 26,164,794 1,653,094 16,114,284 45,344,735 Common stock shares issued 1,137,269 20,138,235 1,190,809 23,197,333 45,663,646 Distribution reinvestment plan shares issued 56,484 1,188,342 87,505 611,538 1,943,869 Common stock shares repurchased (143,134 ) (1,059,710 ) (84,311 ) (774,476 ) (2,061,631 ) Independent directors’ restricted stock (1) — — — 4,234 4,234 December 31, 2020 2,463,182 46,431,661 2,847,097 39,152,913 90,894,853 (1) The independent directors’ restricted stock grant represents an aggregate $0.1 million and $0.1 million of the annual compensation paid to the independent directors for the years ended December 31, 2020 and 2019, respectively. Each grant is amortized over the one-year service period of such grant. |
Schedule of Aggregate Distributions Declared for Each Class of Common Stock | The following table details the aggregate distributions declared for each applicable class of common stock for the nine months ended September 30, 2021: Class T Class S Class D Class I Gross distributions declared per share of common stock $ 0.9315 $ 0.9315 $ 0.9315 $ 0.9315 Stockholder servicing fee per share of common stock (0.1413 ) (0.1418 ) (0.0416 ) — Net distributions declared per share of common stock $ 0.7902 $ 0.7897 $ 0.8899 $ 0.9315 | The following table details the aggregate distributions declared for each applicable class of common stock: Year Ended December 31, 2020 Class T Class S Class D Class I Aggregate gross distributions declared per share of common stock $ 1.2420 $ 1.2420 $ 1.2420 $ 1.2420 Stockholder servicing fee per share of common stock (0.1808 ) (0.1821 ) (0.0533 ) — Net distributions declared per share of common stock $ 1.0612 $ 1.0599 $ 1.1887 $ 1.2420 Year Ended December 31, 2019 Class T Class S Class D Class I Aggregate gross distributions declared per share of common stock $ 1.0905 $ 1.0905 $ 1.0905 $ 1.0905 Stockholder servicing fee per share of common stock (0.1608 ) (0.1787 ) (0.0503 ) — Net distributions declared per share of common stock $ 0.9297 $ 0.9118 $ 1.0402 $ 1.0905 |
Schedule of Redeemable Noncontrolling Interest Activity | The following table summarizes the Redeemable non-controlling interest activity for the nine months ended September 30, 2021 and 2020 ($ in thousands): September 30, 2021 September 30, 2020 Balance at the beginning of the year $ 10,409 $ — Settlement of performance participation allocation 15,061 10,366 GAAP income allocation (1,235 ) (458 ) Distributions (1,095 ) (448 ) Fair value allocation 5,556 792 Ending balance $ 28,696 $ 10,252 | The following table summarizes the Redeemable non-controlling interest activity for the year ended December 31, 2020 ($ in thousands): December 31, 2019 $ — Settlement of 2019 performance participation allocation 10,366 GAAP income (loss) allocation (642 ) Distributions (597 ) Fair value allocation 1,282 December 31, 2020 $ 10,409 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Summary of Components of Due to Affiliates | The following table details the components of Due to affiliates ($ in thousands): September 30, 2021 December 31, 2020 Accrued stockholder servicing fee $ 227,430 $ 73,170 Performance participation allocation 111,934 15,061 Advanced organization and offering costs 4,735 5,830 Accrued management fee 6,782 2,103 Accrued affiliate service provider expenses 610 — Advanced operating expenses 348 207 Total $ 351,839 $ 96,371 | The following table details the components of Due to affiliates ($ in thousands): December 31, 2020 December 31, 2019 Accrued stockholder servicing fee $ 73,170 $ 44,086 Performance participation allocation 15,061 10,366 Advanced organization and offering costs 5,830 7,290 Accrued management fee 2,103 1,037 Accrued affiliate service provider expenses — 112 Advanced operating expenses 207 450 Total $ 96,371 $ 63,341 |
Leases (Tables)
Leases (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Schedule of Future Lease Payments | The following table presents the future lease payments due under the Company’s ground lease as of September 30, 2021 ($ in thousands): Operating Lease 2021 (remaining) $ 172 2022 686 2023 686 2024 686 2025 712 Thereafter 27,210 Total undiscounted future lease payments 30,152 Difference between undiscounted cash flows and discounted cash flows (17,638 ) Total lease liability $ 12,514 | The following table presents the future lease payments due under the Company’s ground lease as of December 31, 2020 ($ in thousands): Year Operating Leases 2021 $ 399 2022 399 2023 399 2024 399 2025 399 Thereafter 16,354 Total undiscounted future lease payments 18,349 Difference between undiscounted cash flows and discounted cash flows 11,959 Total lease liability $ 6,390 |
Summary of Fixed and Variable Components of Operating Leases | The following table summarizes the fixed and variable components of the Company’s operating leases ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Fixed lease payments $ 136,247 $ 64,196 $ 325,242 $ 164,417 Variable lease payments 15,960 7,700 41,308 22,271 Rental revenue $ 152,207 $ 71,896 $ 366,550 $ 186,688 | The following table summarizes the fixed and variable components of the Company’s operating leases ($ in thousands): For the Year Ended December 31, 2020 2019 Fixed lease payments $ 238,897 $ 46,908 Variable lease payments 34,950 4,882 Rental revenue $ 273,847 $ 51,790 |
Schedule of Undiscounted Future Minimum Rents Income Receivables | The following table presents the undiscounted future minimum rents the Company expects to receive for its industrial, office, medical office and other properties ($ in thousands) as of September 30, 2021. Leases at the Company’s multifamily properties are short term, generally 12 months or less, and are therefore not included. Year Future Minimum Rents 2021(remaining) $ 69,631 2022 202,023 2023 189,093 2024 166,671 2025 144,205 Thereafter 522,553 Total $ 1,294,176 | The following table presents the undiscounted future minimum rents the Company expects to receive for its industrial, office and medical office properties as of December 31, 2020 ($ in thousands). Leases at the Company’s multifamily properties are short term, generally 12 months or less, and are therefore not included. Year Future Minimum Rents 2021 $ 129,004 2022 120,778 2023 112,706 2024 99,018 2025 86,304 Thereafter 341,118 Total $ 888,928 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||
Summary of Total Assets by Segment | The following table sets forth the total assets by segment ($ in thousands): September 30, 2021 December 31, 2020 Multifamily properties $ 5,418,160 $ 2,738,210 Hospitality properties 243,157 244,065 Industrial properties 2,144,509 551,898 Office properties 1,291,489 1,186,328 Medical office properties 189,953 196,559 Other property 96,252 — Investments in real estate debt 964,075 218,225 Other (Corporate) 1,476,016 195,531 Total assets $ 11,823,611 $ 5,330,816 | The following table sets forth the total assets by segment ($ in thousands): December 31, December 31, Multifamily $ 2,738,210 $ 1,038,777 Hotel 244,065 253,273 Industrial 551,898 330,110 Office 1,186,328 303,396 Medical office 196,559 39,143 Real estate-related securities 218,225 277,651 Other (Corporate) 195,531 147,972 Total Assets $ 5,330,816 $ 2,390,322 |
Summary of Financial Results by Segment | The following table sets forth the financial results by segment for the three months ended September 30, 2021 ($ in thousands): Multifamily Hospitality Industrial Office Medical Office Other Investments in Real Estate Debt Total Revenues: Rental revenue $ 89,742 $ — $ 29,261 $ 29,272 $ 3,615 $ 317 $ — $ 152,207 Hospitality revenue — 9,364 — — — — — 9,364 Other revenue 654 94 — 106 10 — — 864 Total revenues 90,396 9,458 29,261 29,378 3,625 317 — 162,435 Expenses: Rental property operating 40,032 — 7,169 10,223 1,664 26 — 59,114 Hospitality operating — 5,653 — — — — — 5,653 Total segment expenses 40,032 5,653 7,169 10,223 1,664 26 — 64,767 Loss from unconsolidated real estate ventures — (447 ) — — — — — (447 ) Income from investments in real estate debt — — — — — — 19,268 19,268 Segment net operating income $ 50,364 $ 3,358 $ 22,092 $ 19,155 $ 1,961 $ 291 $ 19,268 $ 116,489 Depreciation and amortization $ (44,908 ) $ (2,138 ) $ (17,560 ) $ (15,546 ) $ (2,065 ) $ (236 ) $ — $ (82,453 ) General and administrative (6,588 ) Management fees (17,653 ) Performance participation allocation (79,552 ) Interest expense (38,887 ) Other expense, net (1,449 ) Net loss $ (110,093 ) Net loss attributable to non-controlling interests in consolidated joint ventures 176 Net loss attributable to non-controlling interests in Operating Partnership 665 Net loss attributable to stockholders $ (109,252 ) The following table sets forth the financial results by segment for the three months ended September 30, 2020 ($ in thousands): Multifamily Hospitality Industrial Office Medical Office Real Estate- Related Securities Total Revenues: Rental revenue $ 32,891 $ — $ 7,027 $ 28,005 $ 3,973 $ — $ 71,896 Hospitality revenue — 4,420 — — — — 4,420 Other revenue 531 13 — 49 11 — 604 Total revenues 33,422 4,433 7,027 28,054 3,984 — 76,920 Expenses: Rental property operating 13,186 — 1,641 9,644 1,444 — 25,915 Hospitality operating — 3,589 — — — — 3,589 Total segment expenses 13,186 3,589 1,641 9,644 1,444 — 29,504 Loss from unconsolidated real estate ventures — (666 ) — — — — (666 ) Income from investments in real estate-related securities, net — — — — — 11,068 11,068 Segment net operating income $ 20,236 $ 178 $ 5,386 $ 18,410 $ 2,540 $ 11,068 $ 57,818 Depreciation and amortization $ (15,702 ) $ (2,142 ) $ (4,161 ) $ (14,214 ) $ (2,324 ) $ — $ (38,543 ) General and administrative (2,023 ) Management fees (5,018 ) Performance participation allocation — Interest expense (22,539 ) Other expense, net (192 ) Net loss $ (10,497 ) Net loss attributable to non- controlling interests in consolidated joint ventures 139 Net loss attributable to non- controlling interests in Operating Partnership 43 Net loss attributable to stockholders $ (10,315 ) The following table sets forth the financial results by segment for the nine months ended September 30, 2021 ($ in thousands): Multifamily Hospitality Industrial Office Medical Office Other Investments in Real Estate Debt Total Revenues: Rental revenue $ 202,402 $ — $ 61,260 $ 91,505 $ 11,066 $ 317 $ — $ 366,550 Hospitality revenue — 24,817 — — — — — 24,817 Other revenue 1,872 260 — 230 31 — — 2,393 Total revenues 204,274 25,077 61,260 91,735 11,097 317 — 393,760 Expenses: Rental property operating 86,839 — 15,960 32,352 4,720 26 — 139,897 Hospitality operating — 15,026 — — — — — 15,026 Total segment expenses 86,839 15,026 15,960 32,352 4,720 26 — 154,923 Loss from unconsolidated real estate ventures — (448 ) — — — — — (448 ) Income from investments in real estate debt — — — — — — 37,898 37,898 Segment net operating income $ 117,435 $ 9,603 $ 45,300 $ 59,383 $ 6,377 $ 291 $ 37,898 $ 276,287 Depreciation and amortization $ (102,176 ) $ (6,401 ) $ (36,470 ) $ (46,273 ) $ (6,378 ) $ (236 ) $ — $ (197,934 ) General and administrative (15,210 ) Management fees (36,364 ) Performance participation allocation (111,934 ) Interest expense (88,994 ) Other expense, net (527 ) Net loss $ (174,676 ) Net loss attributable to non-controlling interests in consolidated joint ventures 319 Net loss attributable to non-controlling interests in Operating Partnership 1,235 Net loss attributable to stockholders $ (173,122 ) The following table sets forth the financial results by segment for the nine months ended September 30, 2020 ($ in thousands): Multifamily Hospitality Industrial Office Medical Office Investments in Real Estate Debt Total Revenues: Rental revenue $ 87,666 $ — $ 20,415 $ 68,777 $ 9,830 $ — $ 186,688 Hospitality revenue — 17,134 — — — — 17,134 Other revenue 1,376 91 — 103 30 — 1,600 Total revenues 89,042 17,225 20,415 68,880 9,860 — 205,422 Expenses: Rental property operating 33,457 — 5,003 23,059 3,354 — 64,873 Hospitality operating — 12,294 — — — — 12,294 Total segment expenses 33,457 12,294 5,003 23,059 3,354 — 77,167 Loss from unconsolidated real estate ventures — (887 ) — — — — (887 ) Loss from investments in real estate- related securities, net — — — — — (27 ) (27 ) Segment net operating income (loss) $ 55,585 $ 4,044 $ 15,412 $ 45,821 $ 6,506 $ (27 ) $ 127,341 Depreciation and amortization $ (49,826 ) $ (6,284 ) $ (12,489 ) $ (34,319 ) $ (5,075 ) $ — $ (107,993 ) General and administrative (6,163 ) Management fees (13,560 ) Performance participation allocation (46 ) Interest expense (65,448 ) Other expense, net (29 ) Net loss $ (65,898 ) Net loss attributable to non-controlling interests in consolidated joint ventures 1,186 Net loss attributable to non-controlling interests in Operating Partnership 458 Net loss attributable to stockholders $ (64,254 ) | The following table sets forth the financial results by segment for the year ended December 31, 2020 ($ in thousands): Multifamily Hotel Industrial Office Medical Office Real Estate- Related Securities Total Revenues: Rental revenue $ 132,835 $ — $ 30,203 $ 97,078 $ 13,731 $ — $ 273,847 Hotel revenue — 22,200 — — — — 22,200 Other revenue 2,045 146 — 145 40 — 2,376 Total revenues 134,880 22,346 30,203 97,223 13,771 — 298,423 Expenses: Rental property operating 51,878 — 7,261 32,895 4,908 — 96,942 Hotel operating — 16,242 — — — — 16,242 Total segment expenses 51,878 16,242 7,261 32,895 4,908 — 113,184 Income from real estate-related securities, net — — — — — 7,206 7,206 Loss from unconsolidated real estate ventures — (1,462 ) — — — — (1,462 ) Segment net operating income $ 83,002 $ 4,642 $ 22,942 $ 64,328 $ 8,863 $ 7,206 $ 190,983 Depreciation and amortization $ (73,365 ) $ (8,403 ) $ (18,323 ) $ (48,477 ) $ (7,296 ) $ — $ (155,864 ) General and administrative (8,624 ) Management fees (19,423 ) Performance participation allocation (15,061 ) Interest expense (88,918 ) Other expense, net (1,293 ) Net loss $ (98,200 ) Net loss attributable to non- controlling interests in consolidated joint ventures 1,300 Net loss attributable to non- controlling interests in Operating Partnership 642 Net loss attributable to stockholders $ (96,258 ) The following table sets forth the financial results by segment for the year ended December 31, 2019 ($ in thousands): Multifamily Hotel Industrial Office Medical Office Real Estate- Related Securities Total Revenues: Rental revenue $ 29,768 $ — $ 2,489 $ 19,022 $ 511 $ — $ 51,790 Hotel revenue — 40,559 — — — — 40,559 Other revenue 1,669 259 — 31 — — 1,959 Total revenues 31,437 40,818 2,489 19,053 511 — 94,308 Expenses: Rental property operating 11,396 — 583 6,388 96 — 18,463 Hotel operating — 23,507 — — — — 23,507 Total segment expenses 11,396 23,507 583 6,388 96 — 41,970 Income from real estate-related securities, net — — — — — 10,158 10,158 Earnings from unconsolidated real estate ventures — 175 — — — — 175 Segment net operating income $ 20,041 $ 17,486 $ 1,906 $ 12,665 $ 415 $ 10,158 $ 62,671 Depreciation and amortization $ (17,520 ) $ (8,239 ) $ (1,570 ) $ (11,312 ) $ (255 ) $ — $ (38,896 ) General and administrative (4,523 ) Management fees (5,469 ) Performance participation allocation (10,366 ) Interest expense (25,311 ) Other income, net 916 Net loss $ (20,978 ) Net loss attributable to non- controlling interests in consolidated joint ventures 152 Net loss attributable to stockholders $ (20,826 ) |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Company's Quarterly Results | The following tables present the Company’s quarterly results ($ in thousands, except per share data): 2020 March 31 June 30 September 30 December 31 Total revenues $ 57,037 $ 71,465 $ 76,920 $ 93,001 Net loss (40,647 ) (14,754 ) (10,497 ) (32,302 ) Net loss attributable to stockholders (39,677 ) (14,262 ) (10,315 ) (32,004 ) Net loss per share, basic and diluted (0.69 ) (0.21 ) (0.14 ) (0.38 ) 2019 March 31 June 30 September 30 December 31 Total revenues $ 15,415 $ 18,745 $ 24,026 $ 36,122 Net loss (2,468 ) (3,596 ) (3,076 ) (11,838 ) Net loss attributable to stockholders (2,468 ) (3,578 ) (3,051 ) (11,729 ) Net loss per share, basic and diluted (0.24 ) (0.22 ) (0.12 ) (0.30 ) 2018 March 31 June 30 September 30 December 31 Total revenues $ — $ — $ — $ — Net loss (16 ) (16 ) (16 ) (1,645 ) Net loss per share, basic and diluted (1.55 ) (1.60 ) (1.60 ) (1.66 ) |
Organization and Business Pur_2
Organization and Business Purpose - Additional Information (Details) $ in Billions | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021USD ($)PropertySegment | Dec. 31, 2020SegmentProperty | Sep. 30, 2021Positions | Sep. 30, 2021Position | Jun. 02, 2021USD ($) | Dec. 31, 2020Positions | Dec. 31, 2020USD ($) | Dec. 31, 2020Position | Dec. 31, 2019Position | Dec. 27, 2017USD ($) | |
Organization And Business Activities [Line Items] | ||||||||||
Common stock, shares registered, amount | $ 5 | |||||||||
Number of properties owned | Property | 245 | 144 | ||||||||
Number of real estate related securities position | 57 | 57 | 56 | 56 | 75 | |||||
Number of reportable segments | Segment | 7 | 6 | ||||||||
Proceeds, issuance of shares of common stock | $ 5.7 | |||||||||
Primary Offering | ||||||||||
Organization And Business Activities [Line Items] | ||||||||||
Common stock, shares registered, amount | $ 10 | $ 5 | ||||||||
Common stock, shares authorized, amount | 8 | 4 | ||||||||
Distribution Reinvestment Plan | ||||||||||
Organization And Business Activities [Line Items] | ||||||||||
Common stock, shares authorized, amount | $ 2 | $ 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Estimated Useful Life of Assets (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||
Lease intangibles and leasehold improvements | Shorter of useful life or lease term | Shorter of useful life or lease term |
Building | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives of assets | 35 years | 35 years |
Building | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives of assets | 40 years | 40 years |
Building and Land Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives of assets | 5 years | 5 years |
Building and Land Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives of assets | 15 years | 15 years |
Furniture, Fixtures and Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives of assets | 5 years | 5 years |
Furniture, Fixtures and Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives of assets | 7 years | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021USD ($)Derivative | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Derivative | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021DKK (kr)Derivative | Sep. 30, 2021GBP (£)Derivative | Sep. 30, 2021EUR (€)Derivative | |
Significant Accounting Policies [Line Items] | |||||||||
Fair value of mortgage notes and repurchase agreements | $ 24,300 | ||||||||
Fair value of derivatives | 5,400 | ||||||||
Derivative liability, fair value, gross liability | 5,200 | ||||||||
Deferred income | $ 7,323 | $ 7,323 | 11,111 | $ 6,707 | |||||
Organization and offering expenses | $ 351,839 | $ 351,839 | $ 96,371 | 63,341 | |||||
Minimum REIT distribution percentage | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | |||
Income tax expense | $ 100 | $ 30 | $ 200 | $ 40 | $ 1,200 | 100 | |||
Deferred tax liability, net | 9,800 | 9,800 | 1,200 | 100 | |||||
Foreign currency translation and transaction losses | (11,400) | (16,800) | |||||||
Secured financings on investments in real estate debt of fair value below outstanding principal balance | 26,800 | 26,800 | |||||||
Hospitality Investments [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Deferred tax liability, net | 1,200 | 1,200 | 1,200 | ||||||
Triple Net Sale And Leaseback Property [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Deferred tax liability, net | 8,600 | ||||||||
Advanced Organization And Offering Costs | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Organization and offering expenses | $ 4,735 | $ 4,735 | $ 5,830 | $ 7,290 | |||||
Interest Rate Cap | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Derivative, number of instruments held | Derivative | 15 | 15 | 15 | 15 | 15 | ||||
Derivative, aggregate notional value | $ 3,000,000 | $ 3,000,000 | |||||||
Interest Rate Swap | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Derivative, number of instruments held | Derivative | 2 | 2 | 2 | 2 | 2 | ||||
Derivative, aggregate notional value | $ 252,200 | $ 252,200 | |||||||
Currency Swap | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Derivative, number of instruments held | 1 | 4 | 2 | ||||||
Derivative, aggregate notional value | kr 165,000,000 | £ 268,000,000 | € 85,000,000 | ||||||
Class S Shares (Member) | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions and dealer manager fee percentage | 3.50% | ||||||||
Annual stockholder servicing fee percentage | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | |||
Class S Shares (Member) | Maximum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions and dealer manager fee percentage | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||||
Class T Shares (Member) | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions and dealer manager fee percentage | 3.50% | ||||||||
Annual stockholder servicing fee percentage | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | |||
Class T Shares (Member) | Maximum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions and dealer manager fee percentage | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||||
Class D Shares (Member) | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions and dealer manager fee percentage | 1.50% | ||||||||
Annual stockholder servicing fee percentage | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% | |||
Class D Shares (Member) | Maximum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions and dealer manager fee percentage | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% | ||||
Advisor | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Period to reimburse the advisor for all organization and offering expenses | 60 months | 60 months | 60 months | ||||||
Organization and offering expenses | $ 7,300 | ||||||||
Advisor | Advanced Organization And Offering Costs | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Organization and offering expenses | $ 7,300 | $ 100 | |||||||
Advisor | Advanced Organization And Offering Costs | Primary Offering | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Organization and offering expenses | $ 7,300 | $ 7,300 | |||||||
Advisor | Class T Shares (Member) | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Advisor Percentage of stockholder servicing fee on NAV per annum | 0.65% | 0.65% | |||||||
Dealer Manager | Class S Shares (Member) | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions percentage | 3.50% | ||||||||
Dealer Manager | Class S Shares (Member) | Maximum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions percentage | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||||
Dealer Manager | Class T Shares (Member) | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions percentage | 3.00% | ||||||||
Upfront dealer manager fee percentage | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | |||
Upfront selling commissions and dealer manager fee percentage | 3.50% | ||||||||
Dealer stockholder servicing fee percentage | 0.20% | 0.20% | |||||||
Annual stockholder servicing fee percentage | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | |||
Dealer Manager | Class T Shares (Member) | Maximum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions percentage | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | ||||
Upfront selling commissions and dealer manager fee percentage | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||||
Dealer Manager | Class D Shares (Member) | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions percentage | 1.50% | ||||||||
Upfront dealer manager fee percentage | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||
Annual stockholder servicing fee percentage | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% | |||
Dealer Manager | Class D Shares (Member) | Maximum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Upfront selling commissions percentage | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% | ||||
Dealer Manager | Class S Share And T Shares | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Annual stockholder servicing fee percentage | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | |||
Dealer Manager | Class I Shares (Member) | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Annual stockholder servicing fee percentage | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||
Dealer Manager | Common Stock Class T, Class S and Class D | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Annual stockholder servicing fee percentage of gross proceeds limit | 8.75% | 8.75% | 8.75% | 8.75% | 8.75% | 8.75% | |||
Stockholder servicing fees accrued | $ 73,200 | 44,100 | |||||||
Danish Investment | Interest Rate Cap | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Derivative, number of instruments held | Derivative | 1 | 1 | 1 | 1 | 1 | ||||
Derivative, aggregate notional value | kr | kr 301,500,000 | ||||||||
Other Revenue | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Other income | $ 200 | $ 200 | $ 600 | $ 600 | 800 | 1,500 | |||
Other Income (Expense) | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Unrealized losses on investments | 1,300 | ||||||||
Accounts Payable, Accrued Expenses and Other Liabilities | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Deferred income | 5,200 | 5,200 | 5,800 | $ 6,600 | |||||
Due to Affiliates | Common Stock Class T, Class S and Class D | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Stockholder servicing fees accrued | $ 227,400 | $ 227,400 | $ 73,200 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Assets And Liabilities Measured At Fair Value On Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 1,200,151 | $ 219,635 |
Liabilities | 952 | 5,167 |
Investments in Real Estate Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 964,075 | 218,225 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 173,732 | |
Derivative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 62,344 | 1,410 |
Liabilities | 952 | 5,167 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 173,732 | |
Level 1 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 173,732 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 541,013 | 219,635 |
Liabilities | 952 | 5,167 |
Level 2 [Member] | Investments in Real Estate Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 478,669 | 218,225 |
Level 2 [Member] | Derivative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 62,344 | 1,410 |
Liabilities | 952 | $ 5,167 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 485,406 | |
Level 3 [Member] | Investments in Real Estate Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 485,406 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Assets Measured At Fair Value On Recurring Basis (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance as of December 31, 2020 | $ 218,225 |
Trading Securities To Net Income [Abstract] | |
Balance as of September 30, 2021 | 964,075 |
Fair Value, Recurring [Member] | Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance as of December 31, 2020 | 0 |
Purchases | 504,540 |
Trading Securities To Net Income [Abstract] | |
Foreign exchange | (19,134) |
Balance as of September 30, 2021 | $ 485,406 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Quantitative Inputs and Assumptions Used for Items Categorized in Level 3 of Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 964,075 | $ 218,225 | $ 277,651 |
Fair Value, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 485,406 | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Selling Commissions, Dealer Manager Fees And Stockholder Servicing (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
Class T Shares (Member) | ||
Significant Accounting Policies [Line Items] | ||
Selling commissions and dealer manager fees (% of transaction price) | 3.50% | |
Stockholder servicing fee (% of NAV) | 0.85% | 0.85% |
Class T Shares (Member) | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Selling commissions and dealer manager fees (% of transaction price) | 3.50% | |
Class S Shares (Member) | ||
Significant Accounting Policies [Line Items] | ||
Selling commissions and dealer manager fees (% of transaction price) | 3.50% | |
Stockholder servicing fee (% of NAV) | 0.85% | 0.85% |
Class S Shares (Member) | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Selling commissions and dealer manager fees (% of transaction price) | 3.50% | |
Class D Shares (Member) | ||
Significant Accounting Policies [Line Items] | ||
Selling commissions and dealer manager fees (% of transaction price) | 1.50% | |
Stockholder servicing fee (% of NAV) | 0.25% | 0.25% |
Class D Shares (Member) | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Selling commissions and dealer manager fees (% of transaction price) | 1.50% |
Investments - Schedule of Inves
Investments - Schedule of Investments in Real Estate, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Real Estate Investment Property, Net [Abstract] | ||||
Building and building improvements | $ 7,498,062 | $ 3,860,297 | $ 1,455,204 | |
Land and land improvements | 1,379,087 | 689,107 | 322,520 | |
Furniture, fixtures and equipment | 129,093 | 76,808 | 46,268 | |
Right of use asset - operating lease | [1] | 105,236 | 101,382 | |
Total | 9,111,478 | 4,727,594 | 1,823,992 | |
Accumulated depreciation and amortization | (272,694) | (130,540) | (25,948) | |
Investments in real estate, net | $ 8,838,784 | $ 4,597,054 | $ 1,798,044 | |
[1] | Refer to Note 13 for additional details on the Company’s leases. |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Thousands | Mar. 12, 2019 | Sep. 30, 2021USD ($)Property | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Property | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Property | Dec. 31, 2019USD ($)Property |
Real Estate Properties [Line Items] | |||||||
Number of real estate properties acquired during the year | 101 | 101 | 73 | 71 | |||
Percentage of ownership interest in joint venture | 43.00% | 43.00% | |||||
Investment in joint venture | $ | $ 10,401 | $ 10,401 | $ 10,991 | $ 12,169 | |||
Income (loss) from Unconsolidated Real Estate Ventures | $ | $ 400 | $ 700 | $ 400 | $ 900 | $ (1,500) | $ 200 | |
Below Market Leases Intangibles | |||||||
Real Estate Properties [Line Items] | |||||||
Weighted-average amortization period | 5 years | 8 years | 6 years | ||||
In-place Lease Intangibles | |||||||
Real Estate Properties [Line Items] | |||||||
Weighted-average amortization period | 4 years | 6 years | 4 years | ||||
Above Market Leases Intangibles | |||||||
Real Estate Properties [Line Items] | |||||||
Weighted-average amortization period | 6 years | 7 years | 5 years | ||||
Below Market Ground Lease | |||||||
Real Estate Properties [Line Items] | |||||||
Weighted-average amortization period | 47 years | ||||||
Other Intangibles | |||||||
Real Estate Properties [Line Items] | |||||||
Weighted-average amortization period | 12 years | ||||||
Above Market Ground Lease | |||||||
Real Estate Properties [Line Items] | |||||||
Weighted-average amortization period | 32 years | ||||||
Multifamily | |||||||
Real Estate Properties [Line Items] | |||||||
Number of real estate properties acquired during the year | 37 | 37 | 60 | 16 | |||
Industrial | |||||||
Real Estate Properties [Line Items] | |||||||
Number of real estate properties acquired during the year | 10 | 33 | |||||
Office Building | |||||||
Real Estate Properties [Line Items] | |||||||
Number of real estate properties acquired during the year | 3 | 3 | 2 | 12 | |||
Medical Office Building | |||||||
Real Estate Properties [Line Items] | |||||||
Number of real estate properties acquired during the year | 1 | 2 | |||||
Industrial Assets | |||||||
Real Estate Properties [Line Items] | |||||||
Number of real estate properties acquired during the year | 60 | 60 | 10 | ||||
Other Property | |||||||
Real Estate Properties [Line Items] | |||||||
Number of real estate properties acquired during the year | 1 | 1 |
Investments - Schedule of Detai
Investments - Schedule of Details of Properties Acquired (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)ft²Day | Dec. 31, 2020USD ($)cafe | Nov. 12, 2021Transaction | ||
Real Estate Properties [Line Items] | ||||
Number of Transactions | Transaction | 15 | 5 | ||
Number of Properties | Property | 101 | 144 | ||
Purchase Price | [1] | $ 4,483,401 | $ 4,912,134 | |
Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Number of Transactions | Transaction | Day | 8 | |||
Number of Properties | Property | Day | 37 | |||
Sq. Ft. (in thousands)/Units | Unit | ft² | 10,861,000 | |||
Purchase Price | [1] | $ 2,692,598 | ||
Office Building | ||||
Real Estate Properties [Line Items] | ||||
Number of Transactions | Transaction | Day | 1 | |||
Number of Properties | Property | Day | 3 | |||
Sq. Ft. (in thousands)/Units | ft² | ft² | 460 | |||
Purchase Price | [1] | $ 135,242 | ||
Industrial Assets | ||||
Real Estate Properties [Line Items] | ||||
Number of Transactions | Transaction | Day | 5 | |||
Number of Properties | Property | Day | 60 | |||
Sq. Ft. (in thousands)/Units | ft² | ft² | 10,380 | |||
Purchase Price | [1] | $ 1,560,968 | ||
Other Property | ||||
Real Estate Properties [Line Items] | ||||
Number of Transactions | Transaction | Day | 1 | |||
Number of Properties | Property | Day | 1 | |||
Sq. Ft. (in thousands)/Units | ft² | ft² | 140 | |||
Purchase Price | [1] | $ 94,593 | ||
Jacksonville/Naples, FL | Florida Multifamily Portfolio | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 4 | |||
Acquisition Date | Jan. 31, 2019 | |||
Purchase Price | [1] | $ 104,049 | ||
Jacksonville/Naples, FL | Florida Office Portfolio | Office Building | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 97.00% | ||
Number of Properties | Property | cafe | 11 | |||
Acquisition Date | May 31, 2019 | |||
Purchase Price | [1] | $ 233,287 | ||
Jacksonville/Naples, FL | Florida Affordable Housing Portfolio I I | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 4 | |||
Acquisition Date | Oct. 31, 2020 | |||
Purchase Price | [1] | $ 114,492 | ||
FL, CO, TN, OH, AR | U.S. Select Service Portfolio | Hotel | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 8 | |||
Acquisition Date | Jan. 31, 2019 | |||
Purchase Price | [1] | $ 232,198 | ||
Columbus, OH | Columbus Mixed Use Portfolio | Multifamily/Office | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 96.00% | ||
Number of Properties | Property | cafe | 5 | |||
Acquisition End Date | Oct. 31, 2019 | |||
Acquisition Start Date | Sep. 30, 2019 | |||
Purchase Price | [1] | $ 279,513 | ||
Columbus, OH | Highlands Portfolio | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 96.00% | ||
Number of Properties | Property | cafe | 3 | |||
Acquisition Date | Jun. 30, 2020 | |||
Purchase Price | [1] | $ 103,228 | ||
IL, IN, OH, WI | Midwest Industrial Portfolio | Industrial | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 95.00% | ||
Number of Properties | Property | cafe | 33 | |||
Acquisition Date | Nov. 30, 2019 | |||
Purchase Price | [1] | $ 322,451 | ||
Savannah, GA | Savannah Multifamily | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Jan. 31, 2019 | |||
Purchase Price | [1] | $ 36,847 | ||
Mesa, AZ | Phoenix Multifamily | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Jan. 31, 2019 | |||
Purchase Price | [1] | $ 46,779 | ||
Fort Meade, MD | Concord Park Apartments | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Jul. 31, 2019 | |||
Purchase Price | [1] | $ 88,203 | ||
Charlotte N C | Cascades Apartments | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Oct. 31, 2019 | |||
Purchase Price | [1] | $ 109,824 | ||
Alexandria, VA | Thornton Apartment | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Oct. 31, 2019 | |||
Purchase Price | [1] | $ 181,678 | ||
Durham, NC | Exchange on Erwin | Multifamily/Medical Office | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 3 | |||
Acquisition Date | Nov. 30, 2019 | |||
Purchase Price | [1] | $ 112,385 | ||
Scottsdale, AZ | The Griffin | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Dec. 31, 2019 | |||
Purchase Price | [1] | $ 96,634 | ||
Salt Lake City, UT | Avida Apartments | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Dec. 31, 2019 | |||
Purchase Price | [1] | $ 87,381 | ||
Salt Lake City, UT | Kalina Way | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Dec. 31, 2020 | |||
Purchase Price | [1] | $ 84,281 | ||
Various Other States | Southeast Affordable Housing Portfolio | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 22 | |||
Purchase Price | [1] | $ 597,160 | ||
Various Other States | Mid Atlantic Affordable Housing Portfolio | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 28 | |||
Acquisition Date | Oct. 31, 2020 | |||
Purchase Price | [1] | $ 537,899 | ||
Nashville T N | Nashville Office | Office Building | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Feb. 29, 2020 | |||
Purchase Price | [1] | $ 265,404 | ||
Nashville T N | Airport Logistics Park | Industrial | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 6 | |||
Acquisition Date | Sep. 30, 2020 | |||
Purchase Price | [1] | $ 62,806 | ||
Chevy Chase M D | Barlow Building | Medical Office | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Mar. 31, 2020 | |||
Purchase Price | [1] | $ 162,212 | ||
Boston M A | 60 State Street | Office Building | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Mar. 31, 2020 | |||
Purchase Price | [1] | $ 613,052 | ||
Atlanta G A | The Baxter Decatur | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Aug. 31, 2020 | |||
Purchase Price | [1] | $ 82,199 | ||
Baltimore, MD | Marshfield Industrial Portfolio | Industrial | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 4 | |||
Acquisition Date | Oct. 31, 2020 | |||
Purchase Price | [1] | $ 166,800 | ||
Ashburn V A | Acadia | Multifamily | ||||
Real Estate Properties [Line Items] | ||||
Ownership Interest | [2] | 100.00% | ||
Number of Properties | Property | cafe | 1 | |||
Acquisition Date | Dec. 31, 2020 | |||
Purchase Price | [1] | $ 191,372 | ||
[1] | Purchase price is inclusive of acquisition-related costs. | |||
[2] | Certain of the investments made by the Company provide the seller or the other partner a profits interest based on certain internal rate of return hurdles being achieved. Such investments are consolidated by the Company and any profits interest due to the other partner is reported within non-controlling interests. |
Investments - Schedule of Det_2
Investments - Schedule of Details of Properties Acquired (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2020 | |
Southeast Affordable Housing Portfolio | Orlando, FL | |
Real Estate Properties [Line Items] | |
Percentage of number of units acquired | 25.00% |
Southeast Affordable Housing Portfolio | Jacksonville, FL | |
Real Estate Properties [Line Items] | |
Percentage of number of units acquired | 26.00% |
Southeast Affordable Housing Portfolio | Newport News, VA | |
Real Estate Properties [Line Items] | |
Percentage of number of units acquired | 11.00% |
Southeast Affordable Housing Portfolio | Tucson, AZ | |
Real Estate Properties [Line Items] | |
Percentage of number of units acquired | 8.00% |
Southeast Affordable Housing Portfolio | Charlotte, NC | |
Real Estate Properties [Line Items] | |
Percentage of number of units acquired | 6.00% |
Southeast Affordable Housing Portfolio | Raleigh, NC | |
Real Estate Properties [Line Items] | |
Percentage of number of units acquired | 6.00% |
Mid Atlantic Affordable Housing Portfolio | Washington, D.C. | |
Real Estate Properties [Line Items] | |
Percentage of number of units acquired | 35.00% |
Mid Atlantic Affordable Housing Portfolio | Norfolk/Newport, VA | |
Real Estate Properties [Line Items] | |
Percentage of number of units acquired | 22.00% |
Mid Atlantic Affordable Housing Portfolio | Raleigh-Durham, NC | |
Real Estate Properties [Line Items] | |
Percentage of number of units acquired | 7.00% |
Investments - Schedule of Purch
Investments - Schedule of Purchase Price Allocation of Properties (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | $ 3,588,114 | $ 2,391,061 | $ 1,436,255 | ||||
Land and land improvements | 685,437 | 342,256 | 320,858 | ||||
Furniture, fixtures and equipment | 49,824 | 28,030 | 45,258 | ||||
Below-market ground lease | [1] | 95,201 | |||||
In-place lease intangibles | 125,655 | 114,399 | 77,605 | ||||
Above-market lease intangibles | 7,406 | 16,689 | 5,382 | ||||
Below-market lease intangibles | (12,741) | (29,197) | (7,039) | ||||
Above-market ground lease intangibles | (2,292) | ||||||
Other intangibles | 12,376 | 28,693 | |||||
Total purchase price | 4,453,779 | [2] | 2,958,439 | [3] | 1,907,012 | [4] | |
Assumed mortgage notes | (156,515) | (328,664) | [5] | ||||
Non-controlling interest | (3,349) | (1,178) | (11,723) | ||||
Net purchase price | $ 4,293,915 | 2,957,261 | 1,566,625 | ||||
60 State Street | |||||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | 479,534 | ||||||
Land and land improvements | 473 | ||||||
Below-market ground lease | [1] | 95,201 | |||||
In-place lease intangibles | 47,736 | ||||||
Above-market lease intangibles | 10,369 | ||||||
Below-market lease intangibles | (19,063) | ||||||
Total purchase price | [3] | 614,250 | |||||
Net purchase price | 614,250 | ||||||
Southeast Affordable Housing Portfolio | |||||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | 459,398 | ||||||
Land and land improvements | 114,954 | ||||||
Furniture, fixtures and equipment | 8,269 | ||||||
In-place lease intangibles | 8,118 | ||||||
Total purchase price | [3] | 590,739 | |||||
Net purchase price | 590,739 | ||||||
Mid Atlantic Affordable Housing Portfolio | |||||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | 430,271 | ||||||
Land and land improvements | 85,327 | ||||||
Furniture, fixtures and equipment | 7,816 | ||||||
In-place lease intangibles | 7,886 | ||||||
Total purchase price | [3] | 531,300 | |||||
Net purchase price | 531,300 | ||||||
Nashville Office | |||||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | 228,180 | ||||||
Land and land improvements | 21,636 | ||||||
In-place lease intangibles | 18,791 | ||||||
Above-market lease intangibles | 410 | ||||||
Below-market lease intangibles | (4,917) | ||||||
Total purchase price | [3] | 264,100 | |||||
Net purchase price | 264,100 | ||||||
Acadia | |||||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | 167,516 | ||||||
Land and land improvements | 18,337 | ||||||
Furniture, fixtures and equipment | 2,224 | ||||||
In-place lease intangibles | 2,073 | ||||||
Total purchase price | [3] | 190,150 | |||||
Net purchase price | 190,150 | ||||||
All Other Real Estate Properties | |||||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | 626,162 | 521,414 | |||||
Land and land improvements | 101,529 | 125,014 | |||||
Furniture, fixtures and equipment | 9,721 | 10,769 | |||||
In-place lease intangibles | 29,795 | 12,948 | |||||
Above-market lease intangibles | 5,910 | 909 | |||||
Below-market lease intangibles | (5,217) | (1,059) | |||||
Other intangibles | 2,219 | ||||||
Total purchase price | 767,900 | [3] | 672,214 | [4] | |||
Assumed mortgage notes | [5] | (136,920) | |||||
Non-controlling interest | (1,178) | ||||||
Net purchase price | $ 766,722 | 535,294 | |||||
Midwest Industrial Portfolio | |||||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | 233,915 | ||||||
Land and land improvements | 60,045 | ||||||
In-place lease intangibles | 24,061 | ||||||
Above-market lease intangibles | 2,839 | ||||||
Below-market lease intangibles | (2,585) | ||||||
Other intangibles | 1,350 | ||||||
Total purchase price | [4] | 319,625 | |||||
Non-controlling interest | (5,480) | ||||||
Net purchase price | 314,145 | ||||||
Florida Office Portfolio | |||||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | 158,206 | ||||||
Land and land improvements | 45,809 | ||||||
In-place lease intangibles | 26,286 | ||||||
Above-market lease intangibles | 1,544 | ||||||
Below-market lease intangibles | (846) | ||||||
Total purchase price | [4] | 230,999 | |||||
Non-controlling interest | (2,880) | ||||||
Net purchase price | 228,119 | ||||||
Thornton Apartments | |||||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | 144,345 | ||||||
Land and land improvements | 30,472 | ||||||
Furniture, fixtures and equipment | 2,581 | ||||||
In-place lease intangibles | 2,776 | ||||||
Total purchase price | [4] | 180,174 | |||||
Net purchase price | 180,174 | ||||||
U.S. Select Service Portfolio | |||||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | 164,266 | ||||||
Land and land improvements | 42,256 | ||||||
Furniture, fixtures and equipment | 22,377 | ||||||
Other intangibles | 101 | ||||||
Total purchase price | [4] | 229,000 | |||||
Assumed mortgage notes | [5] | (84,013) | |||||
Net purchase price | 144,987 | ||||||
Columbus Mixed Use Portfolio | |||||||
Real Estate Properties [Line Items] | |||||||
Building and building improvements | 214,109 | ||||||
Land and land improvements | 17,262 | ||||||
Furniture, fixtures and equipment | 9,531 | ||||||
In-place lease intangibles | 11,534 | ||||||
Above-market lease intangibles | 90 | ||||||
Below-market lease intangibles | (2,549) | ||||||
Other intangibles | 25,023 | ||||||
Total purchase price | [4] | 275,000 | |||||
Assumed mortgage notes | [5] | (107,731) | |||||
Non-controlling interest | (3,363) | ||||||
Net purchase price | $ 163,906 | ||||||
[1] | The below-market ground lease value was recorded as a component of the Right of use asset – operating leases on the Company’s Consolidated Balance Sheet. Refer to Note 13 for additional details on the Company’s leases. | ||||||
[2] | Purchase price excludes acquisition-related costs of $29.6 million. | ||||||
[3] | Purchase price does not include acquisition related costs of $22.5 million. | ||||||
[4] | Purchase price does not include acquisition related costs of $24.2 million. | ||||||
[5] | Includes deferred income reported as a component of Accounts payable, accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. See Note 2 for additional details on the Company’s deferred income. See Note 6 for additional details on the Company’s mortgage notes. |
Investments - Schedule of Pur_2
Investments - Schedule of Purchase Price Allocation of Properties (Details) (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Real Estate Investment Property, Net [Abstract] | |||
Acquisition related costs | $ 29.6 | $ 22.5 | $ 24.2 |
Investments - Estimated Future
Investments - Estimated Future Amortization on the Company's Below-Market Ground Lease (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Real Estate [Line Items] | ||
Below Market Lease Net | $ 32,656 | $ 6,701 |
Below Market Ground Lease | ||
Real Estate [Line Items] | ||
2021 | 2,036 | |
2022 | 2,036 | |
2023 | 2,036 | |
2024 | 2,036 | |
2025 | 2,036 | |
Thereafter | 83,492 | |
Below Market Lease Net | $ 93,672 |
Intangibles - Summary of Gross
Intangibles - Summary of Gross Carrying Amount and Accumulated Amortization of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible assets: | |||
Total intangible assets, gross | $ 392,436 | $ 247,154 | $ 113,499 |
Total accumulated amortization | (123,038) | (67,298) | (13,294) |
Intangible assets, net | 269,398 | 179,856 | 100,205 |
Intangible liabilities: | |||
Below-market lease intangibles | 48,859 | 36,190 | 7,032 |
Total intangible liabilities | 48,859 | 36,190 | |
Accumulated amortization | (7,551) | (3,534) | (331) |
Total accumulated amortization | (7,551) | (3,534) | |
Below Market Lease Net | 32,656 | 6,701 | |
Intangible liabilities, net | 41,308 | 32,656 | |
In-place Lease Intangibles | |||
Intangible assets: | |||
Total intangible assets, gross | 319,651 | 194,003 | 77,311 |
Total accumulated amortization | (110,395) | (60,142) | (12,341) |
Intangible assets, net | 209,256 | 133,861 | |
Above Market Leases Intangibles | |||
Intangible assets: | |||
Total intangible assets, gross | 29,303 | 22,132 | 5,387 |
Total accumulated amortization | (6,858) | (3,506) | (318) |
Intangible assets, net | 22,445 | 18,626 | |
Other | |||
Intangible assets: | |||
Total intangible assets, gross | 43,482 | 31,019 | 30,801 |
Total accumulated amortization | (5,785) | (3,650) | $ (635) |
Intangible assets, net | $ 37,697 | $ 27,369 |
Intangibles - Summary of Estima
Intangibles - Summary of Estimated Future Amortization on Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, net | $ 269,398 | $ 179,856 | $ 100,205 |
Below-market Lease Intangibles | |||
Finite Lived Intangible Assets Net | (32,656) | $ (6,701) | |
In-place Lease Intangibles | |||
Finite Lived Intangible Assets [Line Items] | |||
2021 (remaining) | 22,387 | ||
2021 and 2022 | 52,405 | 39,432 | |
2022 and 2023 | 34,753 | 22,828 | |
2023 and 2024 | 26,027 | 17,289 | |
2024 and 2025 | 21,120 | 12,885 | |
2025 | 10,138 | ||
Thereafter | 52,564 | 31,289 | |
Intangible assets, net | 209,256 | 133,861 | |
Above Market Leases Intangibles | |||
Finite Lived Intangible Assets [Line Items] | |||
2021 (remaining) | 1,264 | ||
2021 and 2022 | 4,580 | 3,782 | |
2022 and 2023 | 4,080 | 3,301 | |
2023 and 2024 | 2,916 | 2,868 | |
2024 and 2025 | 2,279 | 1,883 | |
2025 | 1,492 | ||
Thereafter | 7,326 | 5,300 | |
Intangible assets, net | 22,445 | 18,626 | |
Other | |||
Finite Lived Intangible Assets [Line Items] | |||
2021 (remaining) | 820 | ||
2021 and 2022 | 3,569 | 2,747 | |
2022 and 2023 | 3,484 | 2,738 | |
2023 and 2024 | 3,470 | 2,653 | |
2024 and 2025 | 3,338 | 2,639 | |
2025 | 2,507 | ||
Thereafter | 23,016 | 14,085 | |
Intangible assets, net | 37,697 | 27,369 | |
Below Market Leases | |||
Below-market Lease Intangibles | |||
2021 (remaining) | (1,541) | ||
2021 and 2022 | (6,551) | (3,944) | |
2022 and 2023 | (6,011) | (3,662) | |
2023 and 2024 | (5,005) | (3,354) | |
2024 and 2025 | (4,115) | (3,023) | |
2025 | (2,740) | ||
Thereafter | (18,085) | (15,933) | |
Finite Lived Intangible Assets Net | $ (41,308) | $ (32,656) |
Investments in Real Estate Rela
Investments in Real Estate Related Securities - Summary of Investments in Real Estate-Related Debt Securities (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)Position | Sep. 30, 2021Positions | Sep. 30, 2021Position | Dec. 31, 2020Positions | Dec. 31, 2020Position | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||||||
Number of real estate related securities position | 75 | 57 | 57 | 56 | 56 | |||||
Weighted Average Coupon | 4.39% | |||||||||
Weighted Average Maturity Date | [1] | Jun. 2, 2033 | ||||||||
Cost Basis | $ 977,219 | $ 216,929 | $ 276,180 | |||||||
Investments in real estate debt | 964,075 | $ 218,225 | $ 277,651 | |||||||
Affiliated Entity [Member] | ||||||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||||||
Investments in real estate debt | $ 298,661 | |||||||||
RMBS | ||||||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||||||
Number of real estate related securities position | Position | 59 | 51 | 55 | |||||||
Weighted Average Coupon | 3.12% | 3.22% | [2] | 3.76% | [2] | |||||
Weighted Average Maturity Date | [1] | Nov. 7, 2045 | Mar. 22, 2047 | Oct. 17, 2040 | ||||||
Cost Basis | $ 173,051 | $ 213,863 | $ 235,405 | |||||||
Investments in real estate debt | 177,472 | $ 215,358 | $ 236,844 | |||||||
CMBS | ||||||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||||||
Number of real estate related securities position | Position | 4 | 1 | ||||||||
Weighted Average Coupon | [2] | 6.26% | 3.73% | |||||||
Weighted Average Maturity Date | [1] | Jul. 25, 2039 | Mar. 13, 2037 | |||||||
Cost Basis | $ 3,066 | $ 11,473 | ||||||||
Investments in real estate debt | $ 2,867 | $ 11,571 | ||||||||
CMBS | Affiliated Entity [Member] | ||||||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||||||
Investments in real estate debt | $ 298,661 | |||||||||
CMBS - floating | ||||||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||||||
Number of real estate related securities position | Position | 4 | |||||||||
Weighted Average Coupon | 3.46% | |||||||||
Weighted Average Maturity Date | [1] | Jul. 15, 2038 | ||||||||
Cost Basis | $ 296,928 | |||||||||
Investments in real estate debt | $ 298,661 | |||||||||
CMBS - fixed | ||||||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||||||
Number of real estate related securities position | Position | 1 | 1 | ||||||||
Weighted Average Coupon | 6.26% | 6.26% | ||||||||
Weighted Average Maturity Date | [1] | Jul. 25, 2039 | Jul. 25, 2039 | |||||||
Cost Basis | $ 2,700 | $ 3,066 | ||||||||
Investments in real estate debt | $ 2,536 | $ 2,867 | ||||||||
CLO | ||||||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||||||
Number of real estate related securities position | Position | 12 | |||||||||
Weighted Average Coupon | [2] | 6.12% | ||||||||
Weighted Average Maturity Date | [1] | May 11, 2031 | ||||||||
Cost Basis | $ 29,302 | |||||||||
Investments in real estate debt | $ 29,236 | |||||||||
Real Estate Securities | ||||||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||||||
Number of real estate related securities position | Position | 56 | |||||||||
Weighted Average Coupon | 3.33% | |||||||||
Weighted Average Maturity Date | [1] | Mar. 15, 2041 | ||||||||
Cost Basis | $ 472,679 | |||||||||
Investments in real estate debt | $ 478,669 | |||||||||
Term Loan | ||||||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||||||
Number of real estate related securities position | Position | [3] | 1 | ||||||||
Weighted Average Coupon | [3] | 5.35% | ||||||||
Weighted Average Maturity Date | [1],[3] | Feb. 26, 2026 | ||||||||
Cost Basis | [3] | $ 504,540 | ||||||||
Investments in real estate debt | [3] | $ 485,406 | ||||||||
[1] | Weighted average maturity date is based on the fully extended maturity date of the underlying collateral. | |||||||||
[2] | As of December 31, 2020, the Company’s RMBS investments had floating rate coupons ranging from 0.00% to 7.95% and its CMBS investment had a floating rate coupon of 6.26%. | |||||||||
[3] | On February 26, 2021, the Company provided financing in the form of a term loan to an unaffiliated entity in connection with its acquisition of a premier United Kingdom holiday company. The loan is in the amount of £360 million and has an initial term of five years, with a two-year extension option. |
Investments in Real Estate Re_2
Investments in Real Estate Related Securities - Summary of Investments in Real Estate-Related Debt Securities (Parenthetical) (Details) $ in Thousands, £ in Millions | Feb. 26, 2021GBP (£) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||||
Mortgage notes and revolving credit facility, net | $ | [1] | $ 5,747,138 | $ 3,278,762 | $ 1,238,102 | |
United Kingdom | |||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||||
Mortgage notes and revolving credit facility, net | £ | £ 360 | ||||
Debt instrument, term | 5 years | ||||
RMBS | Minimum | |||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||||
Floating coupon rate | 0.00% | ||||
RMBS | Maximum | |||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||||
Floating coupon rate | 7.95% | ||||
CMBS | |||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||||
Floating coupon rate | 6.26% | ||||
[1] | The majority of the Company’s mortgages contain yield or spread maintenance provisions. |
Investments in Real Estate Re_3
Investments in Real Estate Related Securities - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)Position | |
Schedule of Investments [Abstract] | ||||||
Number of owed collateralized loan obligations positions | Position | 12 | |||||
Unrealized losses on investments in real estate debt | $ 4.6 | $ 6.2 | $ 4.7 | $ 0.2 | ||
Realized losses investments in real estate debt | $ 1.2 | $ 5.8 | $ 5.8 | |||
Unrealized gains on investments in real estate debt | $ 9.2 | $ 1.5 | ||||
Realized gains investments in real estate-related securities | $ 0.6 |
Mortgage Notes and Revolving _3
Mortgage Notes and Revolving Credit Facility - Summary of Mortgage Notes and Revolving Credit Facility Secured by Company's Properties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.40% | 2.40% | ||||||
Maximum Facility Size | $ 450,000 | $ 100,000 | ||||||
Principal Balance Outstanding | [1] | 5,785,823 | 3,295,684 | $ 1,245,022 | ||||
Deferred financing costs, net | [1] | (39,297) | (17,208) | (7,136) | ||||
Discount on assumed debt, net | [1] | 286 | 216 | |||||
Mortgage notes and revolving credit facility, net | [1] | 5,747,138 | 3,278,762 | 1,238,102 | ||||
Premium on assumed debt, net | [1] | $ 612 | $ 286 | |||||
One-Month LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted Average Interest Rate | 0.08% | 0.14% | ||||||
Fixed Rate Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Balance Outstanding | [1] | $ 2,693,436 | $ 2,236,290 | 1,004,423 | ||||
Variable Rate Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Balance Outstanding | [1] | 3,092,387 | 1,059,394 | 240,599 | ||||
Revolving Credit Facility | Variable Rate Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum Facility Size | $ 200,000 | [2] | 200,000 | [3] | ||||
Principal Balance Outstanding | [1],[3] | $ 172,800 | [2] | 0 | ||||
Revolving Credit Facility | Variable Rate Loans | Weighted Average | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted Average Maturity Date | [4] | Oct. 21, 2021 | [2] | Oct. 21, 2021 | [3] | |||
Revolving Credit Facility | Variable Rate Loans | One-Month LIBOR | Weighted Average | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | [3],[5] | 2.00% | ||||||
Fixed Rate Mortgages | Fixed Rate Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted Average Interest Rate | 3.08% | [6] | 3.11% | [5] | ||||
Principal Balance Outstanding | [1] | $ 2,693,436 | $ 2,236,290 | 1,004,423 | ||||
Fixed Rate Mortgages | Fixed Rate Loans | Weighted Average | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted Average Maturity Date | [4] | Sep. 7, 2030 | Feb. 3, 2030 | |||||
Floating Rate Mortgages | Variable Rate Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Balance Outstanding | [1] | $ 3,092,387 | $ 886,594 | $ 240,599 | ||||
Floating Rate Mortgages | Variable Rate Loans | Weighted Average | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted Average Maturity Date | [4] | Jul. 26, 2024 | Mar. 30, 2025 | |||||
Floating Rate Mortgages | Variable Rate Loans | One-Month LIBOR | Weighted Average | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | [5] | 1.81% | ||||||
[1] | The majority of the Company’s mortgages contain yield or spread maintenance provisions. | |||||||
[2] | The Company’s revolving credit facility can be drawn upon to fund the acquisition of future real estate investments. During October 2021, the Company extended this facility to October 21, 2022. | |||||||
[3] | The Company’s revolving credit facility can be drawn upon to fund the acquisition of future real estate investments. | |||||||
[4] | For loans where the Company, at its own discretion, has extension options, the maximum maturity date has been assumed. | |||||||
[5] | The term “L” refers to the one-month LIBOR. As of December 31, 2020, one-month LIBOR was equal to 0.14%. | |||||||
[6] | The term “L” refers to the one-month LIBOR. As of September 30, 2021, one-month LIBOR was equal to 0.08%. |
Mortgage Notes and Revolving _4
Mortgage Notes and Revolving Credit Facility - Summary of Mortgage Notes and Revolving Credit Facility Secured by Company's Properties (Parenthetical) (Details) | 1 Months Ended | ||
Oct. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Extended maturity date | Oct. 21, 2022 | ||
One-Month LIBOR | |||
Debt Instrument [Line Items] | |||
Debt weighted average interest rate | 0.08% | 0.14% |
Mortgage Notes and Revolving _5
Mortgage Notes and Revolving Credit Facility - Summary of Future Principal Payment Under Company's Mortgage Notes and Revolving Credit Facility (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||||
2021 (remaining) | $ 914 | |||
2021 and 2022 | 51,689 | $ 175,901 | ||
2022 and 2023 | 1,651,164 | 51,183 | ||
2023 and 2024 | 483,255 | 3,931 | ||
2024 and 2025 | 648,982 | 215,201 | ||
2025 | 647,091 | |||
Thereafter | 2,949,819 | |||
Thereafter | 2,202,377 | |||
Total | [1] | $ 5,785,823 | $ 3,295,684 | $ 1,245,022 |
[1] | The majority of the Company’s mortgages contain yield or spread maintenance provisions. |
Mortgage Notes and Revolving _6
Mortgage Notes and Revolving Credit Facility - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Interest paid on mortgage notes and revolving credit facility | $ 67.3 | $ 17.4 |
Secured Financings on Investm_3
Secured Financings on Investments in Real Estate Debt - Schedule of Secured Financings on Investments in Real Estate Debt Transactions (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Secured Financings On Investments In Real Estate Debt [Line Items] | |||||||
Collateral Assets | $ 485,406 | [1] | $ 158,405 | [1],[2] | $ 97,746 | [2] | |
Outstanding Balance | $ 134,835 | $ 108,254 | $ 81,035 | ||||
Barclays RA | |||||||
Secured Financings On Investments In Real Estate Debt [Line Items] | |||||||
Weighted Average Maturity Date | Feb. 26, 2026 | ||||||
Collateral Assets | [1] | $ 485,406 | |||||
Outstanding Balance | $ 134,835 | ||||||
RMBS | |||||||
Secured Financings On Investments In Real Estate Debt [Line Items] | |||||||
Weighted Average Maturity Date | Mar. 17, 2021 | ||||||
Weighted Average Interest Rate | 1.93% | 2.62% | |||||
Collateral Assets | [2] | $ 155,538 | [1] | $ 89,784 | |||
Outstanding Balance | $ 105,804 | $ 74,876 | |||||
CMBS | |||||||
Secured Financings On Investments In Real Estate Debt [Line Items] | |||||||
Weighted Average Maturity Date | Jan. 6, 2021 | ||||||
Weighted Average Interest Rate | 2.10% | ||||||
Collateral Assets | [1],[2] | $ 2,867 | |||||
Outstanding Balance | $ 2,450 | ||||||
[1] | Represents the fair value of the Company’s investments in real estate debt. | ||||||
[2] | Represents the fair value of the Company’s investments in real estate-related securities. |
Repurchase Agreements - Summary
Repurchase Agreements - Summary of Repurchase Agreements And Securities Lending Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2019 | |||||
Repurchase Agreements [Line Items] | |||||||
Collateral Assets | $ 158,405 | [1],[2] | $ 485,406 | [1] | $ 97,746 | [2] | |
Outstanding Balance | $ 108,254 | $ 134,835 | $ 81,035 | ||||
RMBS | |||||||
Repurchase Agreements [Line Items] | |||||||
Weighted Average Maturity Date | Mar. 17, 2021 | ||||||
Debt weighted average interest rate | 1.93% | 2.62% | |||||
Collateral Assets | [2] | $ 155,538 | [1] | $ 89,784 | |||
Outstanding Balance | $ 105,804 | $ 74,876 | |||||
CMBS | |||||||
Repurchase Agreements [Line Items] | |||||||
Weighted Average Maturity Date | Jan. 6, 2021 | ||||||
Debt weighted average interest rate | 2.10% | ||||||
Collateral Assets | [1],[2] | $ 2,867 | |||||
Outstanding Balance | $ 2,450 | ||||||
CLO | |||||||
Repurchase Agreements [Line Items] | |||||||
Debt weighted average interest rate | 4.71% | ||||||
Collateral Assets | [2] | $ 7,962 | |||||
Outstanding Balance | $ 6,159 | ||||||
[1] | Represents the fair value of the Company’s investments in real estate debt. | ||||||
[2] | Represents the fair value of the Company’s investments in real estate-related securities. |
Repurchase Agreements - Additio
Repurchase Agreements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Repurchase Agreements [Abstract] | ||
Repurchase agreements, interest paid | $ 3.4 | $ 3.1 |
Unsecured Revolving Credit Fa_2
Unsecured Revolving Credit Facility - Additional Information (Details) - USD ($) $ in Thousands | Dec. 16, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Jul. 31, 2021 |
Debt Instrument [Line Items] | ||||
Uncommitted line of credit | $ 100,000 | |||
Increase in borrowing capacity | $ 450,000 | |||
Line of Credit Facility, Expiration Date | Dec. 16, 2023 | |||
Line of Credit Facility, Description | The Line of Credit expires on December 16, 2023, at which time the Company may request additional one-year extensions thereafter. Interest under the Line of Creditis determined based on one-month U.S. dollar-denominated LIBOR plus 3.0%. | |||
Maximum Facility Size | $ 450,000 | $ 100,000 | ||
Line of Credit Facility, Interest Rate Description | one-month U.S. dollar-denominated LIBOR plus 3.0% | |||
Outstanding borrowings | $ 0 | 0 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Uncommitted line of credit | $ 100,000 | |||
Line of Credit Facility, Expiration Date | Dec. 16, 2023 | |||
Line of Credit Facility, Description | The line of credit expires on December 16, 2023 and commencing on the third anniversary of the closing date, may request additional one year extensions thereafter. Interest under the line of credit is determined based on one-month U.S. dollar-denominated LIBOR plus 3.0%. | |||
Maximum Facility Size | 100,000 | |||
Line of Credit Facility, Interest Rate Description | one-month U.S. dollar-denominated LIBOR plus 3.0% | |||
Outstanding borrowings | $ 0 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities - Schedule of Components of Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | |||
Intangible assets, net | $ 269,398 | $ 179,856 | $ 100,205 |
Acquisition deposits | 208,826 | 7 | 3,050 |
Equity securities | 173,732 | ||
Derivative instruments | 62,344 | 1,410 | 203 |
Receivables | 39,688 | 23,692 | 6,735 |
Prepaid expenses | 10,716 | 4,047 | 1,456 |
Interest receivable | 3,974 | 548 | 1,028 |
Deferred financing costs, net | 3,772 | 1,268 | 674 |
Other | 3,591 | 307 | 146 |
Total | $ 776,041 | $ 211,135 | $ 113,497 |
Other Assets and Other Liabil_4
Other Assets and Other Liabilities - Schedule of Components of Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts payable and accrued expenses | $ 49,699 | $ 19,651 | $ 10,188 |
Real estate taxes payable | 49,618 | 14,842 | 6,513 |
Intangible liabilities, net | 41,308 | 32,656 | 6,701 |
Distributions payable | 24,756 | 8,682 | 4,216 |
Tenant security deposits | 21,095 | 9,842 | 3,547 |
Right of use liability - operating lease | 12,514 | 6,390 | 0 |
Accrued interest expense | 10,091 | 7,309 | 1,993 |
Deferred tax liability | 9,764 | 1,229 | |
Deferred income | 7,323 | $ 11,111 | $ 6,707 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities | |
Derivative instruments | 952 | $ 5,167 | $ 0 |
Other | 3,088 | 193 | 8,114 |
Total | $ 230,208 | 117,072 | $ 47,979 |
Previously Reported [Member] | |||
Other | $ 1,422 |
Equity and Redeemable Non-con_3
Equity and Redeemable Non-controlling Interest - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021USD ($)Class$ / sharesshares | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($)Class$ / sharesshares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Class$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / shares | May 10, 2021$ / sharesshares | |
Number of classes of common stock | Class | 4 | 4 | 4 | |||||||||
Number of shares authorized | 3,100,000,000 | 3,100,000,000 | 1,100,000,000 | |||||||||
Distributions declared | $ / shares | $ 0 | |||||||||||
Fair value allocation | $ | $ 3,252 | $ 1,465 | $ 839 | $ 213 | $ 274 | $ 302 | $ 5,556 | $ 792 | $ 1,282 | |||
Common stock repurchase limitations of aggregate NAV per month percentage | 2.00% | |||||||||||
Common stock repurchase limitations of aggregate NAV per calendar quarter percentage | 5.00% | |||||||||||
Minimum hold period for repurchases without a discount | 1 year | |||||||||||
Repurchase percentage within one year at a discount | 95.00% | |||||||||||
Repurchase of common stock | 475,386 | 1,818,559 | 2,061,631 | 10,350 | ||||||||
Payments for repurchase of common stock | $ | $ 10,800 | $ 40,000 | $ 43,700 | $ 200 | ||||||||
Number of shares authorized | 1,100,000,000 | |||||||||||
Preferred stock, authorized shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||
Preferred stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Charter Amendment | ||||||||||||
Number of shares authorized | 3,100,000,000 | |||||||||||
Preferred Stock | ||||||||||||
Preferred stock, authorized shares | 100,000,000 | |||||||||||
Preferred stock, par value | $ / shares | $ 0.01 | |||||||||||
Preferred Stock | Charter Amendment | ||||||||||||
Preferred stock, authorized shares | 100,000,000 | |||||||||||
Preferred stock, par value | $ / shares | $ 0.01 | |||||||||||
Common Stock | ||||||||||||
Number of shares authorized | 1,000,000,000 | |||||||||||
Common stock, par value | $ / shares | $ 0.01 | |||||||||||
Common Stock | Charter Amendment | ||||||||||||
Common stock, shares authorized | 3,000,000,000 | |||||||||||
Common stock, par value | $ / shares | $ 0.01 | |||||||||||
Common Stock Class T | ||||||||||||
Distributions declared | $ / shares | $ 0.9315 | $ 1.2420 | $ 1.0905 | |||||||||
Repurchase of common stock | 37,422 | 143,134 | ||||||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 250,000,000 | 250,000,000 | |||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Common Stock Class T | Charter Amendment | ||||||||||||
Common stock, shares authorized | 500,000,000 | |||||||||||
Common Stock Class S | ||||||||||||
Distributions declared | $ / shares | $ 0.9315 | $ 1.2420 | $ 1.0905 | |||||||||
Repurchase of common stock | 819,843 | 1,059,710 | 5,507 | |||||||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 250,000,000 | 250,000,000 | |||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Common Stock Class S | Charter Amendment | ||||||||||||
Common stock, shares authorized | 1,000,000,000 | |||||||||||
Common Stock Class D | ||||||||||||
Distributions declared | $ / shares | $ 0.9315 | $ 1.2420 | $ 1.0905 | |||||||||
Repurchase of common stock | 35,754 | 84,311 | ||||||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 250,000,000 | 250,000,000 | |||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Common Stock Class D | Charter Amendment | ||||||||||||
Common stock, shares authorized | 500,000,000 | |||||||||||
Common Stock Class I | ||||||||||||
Distributions declared | $ / shares | $ 0.9315 | $ 1.2420 | $ 1.0905 | |||||||||
Repurchase of common stock | 925,540 | 774,476 | 4,843 | |||||||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 250,000,000 | 250,000,000 | |||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Common Stock Class I | Charter Amendment | ||||||||||||
Common stock, shares authorized | 1,000,000,000 |
Equity and Redeemable Non-con_4
Equity and Redeemable Non-controlling Interest - Schedule of Company's Authorized Capital (Details) - $ / shares | Sep. 30, 2021 | May 10, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Class Of Stock [Line Items] | ||||
Preferred stock, authorized shares | 100,000,000 | 100,000,000 | 100,000,000 | |
Total Number of Shares | 3,100,000,000 | 1,100,000,000 | ||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |
Common Stock Class T | ||||
Class Of Stock [Line Items] | ||||
Number of Shares | 500,000,000 | 250,000,000 | 500,000,000 | 250,000,000 |
Par value | $ 0.01 | $ 0.01 | $ 0.01 | |
Common Stock Class T | Previously Reported [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of Shares | 250,000,000 | |||
Common Stock Class S | ||||
Class Of Stock [Line Items] | ||||
Number of Shares | 1,000,000,000 | 250,000,000 | 1,000,000,000 | 250,000,000 |
Par value | $ 0.01 | $ 0.01 | $ 0.01 | |
Common Stock Class S | Previously Reported [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of Shares | 250,000,000 | |||
Common Stock Class D | ||||
Class Of Stock [Line Items] | ||||
Number of Shares | 500,000,000 | 250,000,000 | 500,000,000 | 250,000,000 |
Par value | $ 0.01 | $ 0.01 | $ 0.01 | |
Common Stock Class D | Previously Reported [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of Shares | 250,000,000 | |||
Common Stock Class I | ||||
Class Of Stock [Line Items] | ||||
Number of Shares | 1,000,000,000 | 250,000,000 | 1,000,000,000 | 250,000,000 |
Par value | $ 0.01 | $ 0.01 | $ 0.01 | |
Common Stock Class I | Previously Reported [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of Shares | 250,000,000 |
Equity and Redeemable Non-con_5
Equity and Redeemable Non-controlling Interest - Schedule of Common Stock Outstanding shares (Details) - shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class Of Stock [Line Items] | |||||
Beginning balance | 90,894,853 | 45,344,735 | 8,198,838 | 10,000 | |
Common stock shares issued | 167,639,517 | 45,663,646 | 36,612,006 | 8,188,838 | |
Distribution reinvestment plan shares issued | 2,572,872 | 1,943,869 | 538,388 | ||
Common stock shares repurchased | (475,386) | (1,818,559) | (2,061,631) | (10,350) | |
Independent directors' restricted stock grant | 14,829 | 4,234 | 5,853 | ||
Ending balance | 259,303,512 | 259,303,512 | 90,894,853 | 45,344,735 | 8,198,838 |
Common Stock Class T | |||||
Class Of Stock [Line Items] | |||||
Beginning balance | 2,463,182 | 1,412,563 | 483 | 0 | |
Common stock shares issued | 1,523,077 | 1,137,269 | 1,401,818 | 483 | |
Distribution reinvestment plan shares issued | 60,801 | 56,484 | 10,262 | ||
Common stock shares repurchased | (37,422) | (143,134) | |||
Ending balance | 4,009,638 | 4,009,638 | 2,463,182 | 1,412,563 | 483 |
Common Stock Class S | |||||
Class Of Stock [Line Items] | |||||
Beginning balance | 46,431,661 | 26,164,794 | 6,610,280 | 0 | |
Common stock shares issued | 74,589,078 | 20,138,235 | 19,176,803 | 6,610,280 | |
Distribution reinvestment plan shares issued | 1,442,493 | 1,188,342 | 383,218 | ||
Common stock shares repurchased | (819,843) | (1,059,710) | (5,507) | ||
Ending balance | 121,643,389 | 121,643,389 | 46,431,661 | 26,164,794 | 6,610,280 |
Common Stock Class D | |||||
Class Of Stock [Line Items] | |||||
Beginning balance | 2,847,097 | 1,653,094 | 46,075 | 0 | |
Common stock shares issued | 15,921,954 | 1,190,809 | 1,584,566 | 46,075 | |
Distribution reinvestment plan shares issued | 109,861 | 87,505 | 22,453 | ||
Common stock shares repurchased | (35,754) | (84,311) | |||
Ending balance | 18,843,158 | 18,843,158 | 2,847,097 | 1,653,094 | 46,075 |
Common Stock Class I | |||||
Class Of Stock [Line Items] | |||||
Beginning balance | 39,152,913 | 16,114,284 | 1,542,000 | 10,000 | |
Common stock shares issued | 75,605,408 | 23,197,333 | 14,448,819 | 1,532,000 | |
Distribution reinvestment plan shares issued | 959,717 | 611,538 | 122,455 | ||
Common stock shares repurchased | (925,540) | (774,476) | (4,843) | ||
Independent directors' restricted stock grant | 14,829 | 4,234 | 5,853 | ||
Ending balance | 114,807,327 | 114,807,327 | 39,152,913 | 16,114,284 | 1,542,000 |
Equity and Redeemable Non-con_6
Equity and Redeemable Non-controlling Interest - Schedule of Common Stock Outstanding shares (Details) (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Annual compensation paid to the independent directors | $ 0.3 | $ 0.1 | $ 0.1 |
Grant amortized period | 1 year | 1 year | 1 year |
Equity and Redeemable Non-con_7
Equity and Redeemable Non-controlling Interest - Schedule of Aggregate Distributions Declared for Each Class of Common Stock (Details) - $ / shares | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class Of Stock [Line Items] | ||||
Gross distributions declared per share of common stock | $ 0 | |||
Common Stock Class T | ||||
Class Of Stock [Line Items] | ||||
Gross distributions declared per share of common stock | $ 0.9315 | $ 1.2420 | $ 1.0905 | |
Stockholder servicing fee per share of common stock | (0.1413) | (0.1808) | (0.1608) | |
Net distributions declared per share of common stock | 0.7902 | 1.0612 | 0.9297 | |
Common Stock Class S | ||||
Class Of Stock [Line Items] | ||||
Gross distributions declared per share of common stock | 0.9315 | 1.2420 | 1.0905 | |
Stockholder servicing fee per share of common stock | (0.1418) | (0.1821) | (0.1787) | |
Net distributions declared per share of common stock | 0.7897 | 1.0599 | 0.9118 | |
Common Stock Class D | ||||
Class Of Stock [Line Items] | ||||
Gross distributions declared per share of common stock | 0.9315 | 1.2420 | 1.0905 | |
Stockholder servicing fee per share of common stock | (0.0416) | (0.0533) | (0.0503) | |
Net distributions declared per share of common stock | 0.8899 | 1.1887 | 1.0402 | |
Common Stock Class I | ||||
Class Of Stock [Line Items] | ||||
Gross distributions declared per share of common stock | 0.9315 | 1.2420 | 1.0905 | |
Stockholder servicing fee per share of common stock | 0 | 0 | ||
Net distributions declared per share of common stock | $ 0.9315 | $ 1.2420 | $ 1.0905 |
Equity and Redeemable Non-con_8
Equity and Redeemable Non-controlling Interest - Schedule of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Equity [Abstract] | |||||||||
Beginning balance | $ 10,409 | $ 0 | $ 10,409 | $ 0 | $ 0 | ||||
Settlement of performance participation allocation | 15,061 | 10,366 | 10,366 | ||||||
GAAP income (loss) allocation | (1,235) | (458) | (642) | ||||||
Distributions | (1,095) | (448) | (597) | ||||||
Fair value allocation | $ 3,252 | $ 1,465 | $ 839 | $ 213 | $ 274 | $ 302 | 5,556 | 792 | 1,282 |
Ending balance | $ 28,696 | $ 10,252 | $ 28,696 | $ 10,252 | $ 10,409 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) $ in Thousands | Nov. 12, 2021USD ($) | Oct. 29, 2020USD ($) | Jan. 03, 2019USD ($)ClassDay | Oct. 05, 2018USD ($) | Jul. 19, 2018USD ($) | Jun. 29, 2018USD ($) | Oct. 31, 2021shares | Jan. 31, 2021USD ($)shares | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Dayshares | Dec. 31, 2019USD ($)shares | Mar. 20, 2020 | Jan. 31, 2020shares |
Related Party Transaction [Line Items] | ||||||||||||||||||
Purchase Price | $ 59,000 | |||||||||||||||||
Acquired interest rate on property | 75.00% | |||||||||||||||||
Acquired interest rate on property by related party | 25.00% | |||||||||||||||||
Description of variable rate basis | one-month LIBOR +2.40% | one month LIBOR plus 2.40% | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.40% | 2.40% | ||||||||||||||||
Principle amount | $ 300 | $ 300 | ||||||||||||||||
PerformanceParticipationAllocation | $ 79,600 | $ 0 | $ 111,900 | $ 46,000 | $ 15,100 | $ 10,400 | ||||||||||||
Services fee for accounting and administrative matters | $ 40 | |||||||||||||||||
Percentage of management fee on NAV per annum | 1.25% | 1.25% | ||||||||||||||||
Management fees | 17,653 | 5,018 | $ 36,364 | 13,560 | $ 19,423 | 5,469 | ||||||||||||
Annual hurdle percentage | 5.00% | 5.00% | ||||||||||||||||
Due to affiliates | 351,839 | $ 351,839 | $ 96,371 | 63,341 | ||||||||||||||
Operating expenses | 64,767 | 29,504 | 154,923 | 77,167 | 113,184 | 41,970 | ||||||||||||
Rental property operating | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Operating expenses | 59,114 | 25,915 | 139,897 | 64,873 | 96,942 | 18,463 | ||||||||||||
Dealer Manager | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Cost of legal services | 100 | |||||||||||||||||
Accrued Stockholder Servicing Fee | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | 227,430 | 227,430 | 73,170 | 44,086 | ||||||||||||||
Advanced Organization And Offering Costs | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | 4,735 | 4,735 | 5,830 | 7,290 | ||||||||||||||
Accrued Affiliate Service Provider Expenses | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | 610 | 610 | 0 | 112 | ||||||||||||||
Cost of legal services | 300 | 200 | ||||||||||||||||
Title service related cost | $ 200 | |||||||||||||||||
Number of investment | Day | 2 | |||||||||||||||||
Accrued Affiliate Service Provider Expenses | Rental property operating | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Operating expenses | 1,800 | 700 | 4,600 | 1,900 | $ 2,800 | $ 700 | ||||||||||||
Accrued Affiliate Service Provider Expenses | Essex Service Provider [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Cost of legal services | 300 | 600 | 0 | |||||||||||||||
Affiliate Service Provider Expenses [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Cost of legal services | 100 | $ 100 | $ 300 | $ 200 | ||||||||||||||
Class I Units | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Units issued as payment for performance participation allocation | shares | 695,320 | 480,539 | ||||||||||||||||
Unregistered Class I shares | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Stock issued as management fees, shares | shares | 1,313,346 | 811,757 | 210,827 | |||||||||||||||
Management fees, accrued | 6,800 | $ 6,800 | $ 2,100 | $ 1,000 | ||||||||||||||
Units issued as payment for performance participation allocation | shares | 48,049 | |||||||||||||||||
Class I Shares | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Number of shares authorized for repurchase | shares | 8,787 | |||||||||||||||||
Share repurchase program, authorized amount | $ 200 | |||||||||||||||||
Subsequent Event | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Purchase Price | $ 4,900,000 | $ 134,800 | ||||||||||||||||
Subsequent Event | Class I Units | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Units issued as payment for performance participation allocation | shares | 695,320 | |||||||||||||||||
Subsequent Event | Unregistered Class I shares | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Stock issued as management fees, shares | shares | 277,913 | 97,097 | ||||||||||||||||
Sponsor | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Description of variable rate basis | one month LIBOR plus 3.00% | |||||||||||||||||
Borrowings to fund acquisition | $ 22,000 | |||||||||||||||||
Borrowing repayment date | Nov. 3, 2020 | |||||||||||||||||
Special Limited Partner | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Related party allocation percentage of annual total return | 12.50% | 12.50% | ||||||||||||||||
All Other Unit Holders [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Related party allocation percentage of annual total return | 87.50% | 87.50% | ||||||||||||||||
Dealer Manager | Common Stock Class T, Class S and Class D | Accrued Stockholder Servicing Fee | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | $ 227,400 | $ 227,400 | $ 73,200 | 44,100 | ||||||||||||||
Dealer Manager | Common Stock Class T, Class S and Class D | Accrued Stockholder Servicing Fee | Maximum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Annual stockholder servicing fee percentage | 8.75% | 8.75% | 8.75% | |||||||||||||||
Advisor | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | $ 7,300 | |||||||||||||||||
Advisor | Advanced Organization And Offering Costs | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | 7,300 | 100 | ||||||||||||||||
Advisor | Advanced Expenses | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | 2,700 | |||||||||||||||||
Advisor | Advanced Expenses | Unaffiliated Third Party | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | 100 | 1,000 | ||||||||||||||||
Starwood R E I T Advisors L L C Member [Member] | Advanced Organization And Offering Costs | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | $ 7,300 | |||||||||||||||||
Starwood R E I T Advisors L L C Member [Member] | Advanced Expenses | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | $ 200 | $ 200 | 100 | |||||||||||||||
Starwood R E I T Advisors L L C Member [Member] | Advanced Expenses | One Month In Arrears [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | 3,800 | 3,800 | 2,700 | |||||||||||||||
Starwood R E I T Advisors L L C Member [Member] | Advanced Expenses | Unaffiliated Third Party | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Due to affiliates | $ 100 | $ 100 | $ 100 | |||||||||||||||
Florida Multifamily Portfolio | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Purchase Price | $ 100,000 | $ 100,000 | ||||||||||||||||
Number of units in portfolio | Day | 1,150 | |||||||||||||||||
Florida Multifamily Portfolio | Jacksonville, Florida | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Number of investment | Class | 2 | |||||||||||||||||
Florida Multifamily Portfolio | Naples, Florida | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Number of investment | Class | 2 | |||||||||||||||||
Phoenix Property | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Purchase Price | $ 46,000 | $ 46,000 | ||||||||||||||||
Phoenix Property | Mesa, Arizona | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Number of units in portfolio | Class | 256 | |||||||||||||||||
Savannah Property | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Purchase Price | $ 36,000 | $ 36,000 | ||||||||||||||||
Savannah Property | Savannah, Georgia | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Number of units in portfolio | Class | 203 |
Related Party Transactions - Su
Related Party Transactions - Summary of Components of Due to Affiliates (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||
Due to affiliates | $ 351,839 | $ 96,371 | $ 63,341 |
Accrued Stockholder Servicing Fee | |||
Related Party Transaction [Line Items] | |||
Due to affiliates | 227,430 | 73,170 | 44,086 |
Advanced Organization And Offering Costs | |||
Related Party Transaction [Line Items] | |||
Due to affiliates | 4,735 | 5,830 | 7,290 |
Performance Participation Allocation | |||
Related Party Transaction [Line Items] | |||
Due to affiliates | 111,934 | 15,061 | 10,366 |
Accrued Management Fee | |||
Related Party Transaction [Line Items] | |||
Due to affiliates | 6,782 | 2,103 | 1,037 |
Accrued Affiliate Service Provider Expenses | |||
Related Party Transaction [Line Items] | |||
Due to affiliates | 610 | 0 | 112 |
Advanced Operating Expenses | |||
Related Party Transaction [Line Items] | |||
Due to affiliates | $ 348 | $ 207 | $ 450 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Operating Leased Assets [Line Items] | ||
Lessee, operating lease acquisition, incremental cost | $ 0 | $ 0 |
Incremental borrowing rate to determine lease liabilities | 6.00% | |
Operating lease, weighted average remaining lease term | 38 years | 46 years |
Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Incremental borrowing rate to determine lease liabilities | 6.00% | |
Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Incremental borrowing rate to determine lease liabilities | 4.50% |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | |||
2021 (remaining) | $ 172 | ||
2022/2021 | 686 | $ 399 | |
2023/2022 | 686 | 399 | |
2024/2023 | 686 | 399 | |
2024/2023 | 712 | 399 | |
2025 | 399 | ||
Thereafter | 27,210 | ||
Thereafter | 16,354 | ||
Total undiscounted future lease payments | 30,152 | 18,349 | |
Difference between undiscounted cash flows and discounted cash flows | 17,638 | 11,959 | |
Total lease liability | $ 12,514 | $ 6,390 | $ 0 |
Leases - Summary of Fixed and V
Leases - Summary of Fixed and Variable Components of Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||||||
Fixed lease payments | $ 136,247 | $ 64,196 | $ 325,242 | $ 164,417 | $ 238,897 | $ 46,908 |
Variable lease payments | 15,960 | 7,700 | 41,308 | 22,271 | 34,950 | 4,882 |
Rental revenue | $ 152,207 | $ 71,896 | $ 366,550 | $ 186,688 | $ 273,847 | $ 51,790 |
Leases - Schedule of Undiscount
Leases - Schedule of Undiscounted Future Minimum Rents Income Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 (remaining) | $ 69,631 | |
2021 | 202,023 | $ 129,004 |
2022 | 189,093 | 120,778 |
2023 | 166,671 | 112,706 |
2024 | 144,205 | 99,018 |
2025 | 86,304 | |
Thereafter | 522,553 | |
Thereafter | 341,118 | |
Total | $ 1,294,176 | $ 888,928 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) - Segment | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 7 | 6 |
Segment Reporting - Summary of
Segment Reporting - Summary of Total Assets by Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | |||
Total Assets | $ 11,823,611 | $ 5,330,816 | $ 2,390,322 |
Multifamily properties | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 5,418,160 | 2,738,210 | 1,038,777 |
Hospitality properties | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 243,157 | 244,065 | |
Hotel | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 244,065 | 253,273 | |
Industrial properties | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 2,144,509 | 551,898 | 330,110 |
Office properties | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 1,291,489 | 1,186,328 | 303,396 |
Medical office properties | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 189,953 | 196,559 | 39,143 |
Other property | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 96,252 | 0 | |
Investments in real estate debt | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 964,075 | 218,225 | 277,651 |
Other (Corporate) | |||
Segment Reporting Information [Line Items] | |||
Total Assets | $ 1,476,016 | $ 195,531 | $ 147,972 |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Financial Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | ||||||||||||||||||
Total revenues | $ 162,435 | $ 93,001 | $ 76,920 | $ 71,465 | $ 57,037 | $ 36,122 | $ 24,026 | $ 18,745 | $ 15,415 | $ 0 | $ 0 | $ 0 | $ 0 | $ 393,760 | $ 205,422 | $ 298,423 | $ 94,308 | |
Expenses | ||||||||||||||||||
Operating expenses | 64,767 | 29,504 | 154,923 | 77,167 | 113,184 | 41,970 | ||||||||||||
Income from investments in real estate debt | 19,268 | 11,068 | 37,898 | (27) | 7,206 | 10,158 | ||||||||||||
Loss from unconsolidated real estate ventures | (447) | (666) | (448) | (887) | (1,462) | 175 | ||||||||||||
Segment net operating income | 116,489 | 57,818 | 276,287 | 127,341 | 190,983 | 62,671 | ||||||||||||
Depreciation and amortization | (82,453) | (38,543) | (197,934) | (107,993) | (155,864) | (38,896) | ||||||||||||
General and administrative | (6,588) | (2,023) | (15,210) | (6,163) | (8,624) | (4,523) | $ (1,745) | |||||||||||
Management fees | (17,653) | (5,018) | (36,364) | (13,560) | (19,423) | (5,469) | ||||||||||||
Performance participation allocation | (79,552) | 0 | (111,934) | (46) | (15,061) | (10,366) | ||||||||||||
Interest expense | (38,887) | (22,539) | (88,994) | (65,448) | (88,918) | (25,311) | ||||||||||||
Other expense, net | (1,449) | (192) | (527) | (29) | (1,293) | |||||||||||||
Net loss | (110,093) | (32,302) | (10,497) | (14,754) | (40,647) | (11,838) | (3,076) | (3,596) | (2,468) | $ (1,645) | $ (16) | $ (16) | $ (16) | (174,676) | (65,898) | (98,200) | (20,978) | (1,693) |
Net loss attributable to non-controlling interests in consolidated joint ventures | 176 | 139 | 319 | 1,186 | 1,300 | 152 | ||||||||||||
Net loss attributable to non-controlling interests in Operating Partnership | 665 | 43 | 1,235 | 458 | 642 | |||||||||||||
Net loss attributable to stockholders | (109,252) | $ (32,004) | (10,315) | $ (14,262) | $ (39,677) | $ (11,729) | $ (3,051) | $ (3,578) | $ (2,468) | (173,122) | (64,254) | (96,258) | (20,826) | $ (1,693) | ||||
Other income, net | 916 | |||||||||||||||||
Operating Segments | ||||||||||||||||||
Expenses | ||||||||||||||||||
Depreciation and amortization | (15,546) | |||||||||||||||||
Operating Segments | Multifamily properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 90,396 | 33,422 | 204,274 | 89,042 | 134,880 | 31,437 | ||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 40,032 | 13,186 | 86,839 | 33,457 | 51,878 | 11,396 | ||||||||||||
Segment net operating income | 50,364 | 20,236 | 117,435 | 55,585 | 83,002 | 20,041 | ||||||||||||
Depreciation and amortization | (44,908) | (15,702) | (102,176) | (49,826) | (73,365) | (17,520) | ||||||||||||
Operating Segments | Hotel | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 22,346 | 40,818 | ||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 16,242 | 23,507 | ||||||||||||||||
Loss from unconsolidated real estate ventures | (1,462) | 175 | ||||||||||||||||
Segment net operating income | 4,642 | 17,486 | ||||||||||||||||
Depreciation and amortization | (8,403) | (8,239) | ||||||||||||||||
Operating Segments | Industrial properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 29,261 | 7,027 | 61,260 | 20,415 | 30,203 | 2,489 | ||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 7,169 | 1,641 | 15,960 | 5,003 | 7,261 | 583 | ||||||||||||
Segment net operating income | 22,092 | 5,386 | 45,300 | 15,412 | 22,942 | 1,906 | ||||||||||||
Depreciation and amortization | (17,560) | (4,161) | (36,470) | (12,489) | (18,323) | (1,570) | ||||||||||||
Operating Segments | Office properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 29,378 | 28,054 | 91,735 | 68,880 | 97,223 | 19,053 | ||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 10,223 | 9,644 | 32,352 | 23,059 | 32,895 | 6,388 | ||||||||||||
Segment net operating income | 19,155 | 18,410 | 59,383 | 45,821 | 64,328 | 12,665 | ||||||||||||
Depreciation and amortization | (14,214) | (46,273) | (34,319) | (48,477) | (11,312) | |||||||||||||
Operating Segments | Medical office properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 3,625 | 3,984 | 11,097 | 9,860 | 13,771 | 511 | ||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 1,664 | 1,444 | 4,720 | 3,354 | 4,908 | 96 | ||||||||||||
Segment net operating income | 1,961 | 2,540 | 6,377 | 6,506 | 8,863 | 415 | ||||||||||||
Depreciation and amortization | (2,065) | (2,324) | (6,378) | (5,075) | (7,296) | (255) | ||||||||||||
Operating Segments | Investments in real estate debt | ||||||||||||||||||
Expenses | ||||||||||||||||||
Income from investments in real estate debt | 19,268 | 11,068 | 37,898 | (27) | 7,206 | 10,158 | ||||||||||||
Segment net operating income | 19,268 | 11,068 | 37,898 | (27) | 7,206 | 10,158 | ||||||||||||
Operating Segments | Other property | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 317 | 317 | ||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 26 | 26 | ||||||||||||||||
Segment net operating income | 291 | 291 | ||||||||||||||||
Depreciation and amortization | (236) | (236) | ||||||||||||||||
Operating Segments | Hospitality properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 9,458 | 4,433 | 25,077 | 17,225 | ||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 5,653 | 3,589 | 15,026 | 12,294 | ||||||||||||||
Loss from unconsolidated real estate ventures | (447) | (666) | (448) | (887) | ||||||||||||||
Segment net operating income | 3,358 | 178 | 9,603 | 4,044 | ||||||||||||||
Depreciation and amortization | (2,138) | (2,142) | (6,401) | (6,284) | ||||||||||||||
Rental Revenue | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 152,207 | 71,896 | 366,550 | 186,688 | 273,847 | 51,790 | ||||||||||||
Rental Revenue | Operating Segments | Multifamily properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 89,742 | 32,891 | 202,402 | 87,666 | 132,835 | 29,768 | ||||||||||||
Rental Revenue | Operating Segments | Industrial properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 29,261 | 7,027 | 61,260 | 20,415 | 30,203 | 2,489 | ||||||||||||
Rental Revenue | Operating Segments | Office properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 29,272 | 28,005 | 91,505 | 68,777 | 97,078 | 19,022 | ||||||||||||
Rental Revenue | Operating Segments | Medical office properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 3,615 | 3,973 | 11,066 | 9,830 | 13,731 | 511 | ||||||||||||
Rental Revenue | Operating Segments | Other property | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 317 | 317 | ||||||||||||||||
Hotel revenue | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 22,200 | 40,559 | ||||||||||||||||
Hotel revenue | Operating Segments | Hotel | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 22,200 | 40,559 | ||||||||||||||||
Other revenue | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 864 | 604 | 2,393 | 1,600 | 2,376 | 1,959 | ||||||||||||
Other revenue | Operating Segments | Multifamily properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 654 | 531 | 1,872 | 1,376 | 2,045 | 1,669 | ||||||||||||
Other revenue | Operating Segments | Hotel | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 146 | 259 | ||||||||||||||||
Other revenue | Operating Segments | Office properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 106 | 49 | 230 | 103 | 145 | 31 | ||||||||||||
Other revenue | Operating Segments | Medical office properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 10 | 11 | 31 | 30 | 40 | |||||||||||||
Other revenue | Operating Segments | Hospitality properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 94 | 13 | 260 | 91 | ||||||||||||||
Hospitality Revenue [Member] | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 9,364 | 4,420 | 24,817 | 17,134 | ||||||||||||||
Hospitality Revenue [Member] | Operating Segments | Hospitality properties | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Total revenues | 9,364 | 4,420 | 24,817 | 17,134 | ||||||||||||||
Hospitality Operating [Member] | ||||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 5,653 | 3,589 | 15,026 | 12,294 | ||||||||||||||
Hospitality Operating [Member] | Operating Segments | Hospitality properties | ||||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 5,653 | 3,589 | 15,026 | 12,294 | ||||||||||||||
Rental property operating | ||||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 59,114 | 25,915 | 139,897 | 64,873 | 96,942 | 18,463 | ||||||||||||
Rental property operating | Operating Segments | Multifamily properties | ||||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 40,032 | 13,186 | 86,839 | 33,457 | 51,878 | 11,396 | ||||||||||||
Rental property operating | Operating Segments | Industrial properties | ||||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 7,169 | 1,641 | 15,960 | 5,003 | 7,261 | 583 | ||||||||||||
Rental property operating | Operating Segments | Office properties | ||||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 10,223 | 9,644 | 32,352 | 23,059 | 32,895 | 6,388 | ||||||||||||
Rental property operating | Operating Segments | Medical office properties | ||||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 1,664 | 1,444 | 4,720 | 3,354 | 4,908 | 96 | ||||||||||||
Rental property operating | Operating Segments | Other property | ||||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | 26 | 26 | ||||||||||||||||
Hotel operating | ||||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | $ 5,653 | $ 3,589 | $ 15,026 | $ 12,294 | 16,242 | 23,507 | ||||||||||||
Hotel operating | Operating Segments | Hotel | ||||||||||||||||||
Expenses | ||||||||||||||||||
Operating expenses | $ 16,242 | $ 23,507 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Summary of Company's Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||
Total revenues | $ 162,435 | $ 93,001 | $ 76,920 | $ 71,465 | $ 57,037 | $ 36,122 | $ 24,026 | $ 18,745 | $ 15,415 | $ 0 | $ 0 | $ 0 | $ 0 | $ 393,760 | $ 205,422 | $ 298,423 | $ 94,308 | |
Net loss | (110,093) | (32,302) | (10,497) | (14,754) | (40,647) | (11,838) | (3,076) | (3,596) | (2,468) | $ (1,645) | $ (16) | $ (16) | $ (16) | (174,676) | (65,898) | (98,200) | (20,978) | $ (1,693) |
Net loss attributable to stockholders | $ (109,252) | $ (32,004) | $ (10,315) | $ (14,262) | $ (39,677) | $ (11,729) | $ (3,051) | $ (3,578) | $ (2,468) | $ (173,122) | $ (64,254) | $ (96,258) | $ (20,826) | $ (1,693) | ||||
Net loss per share, basic and diluted | $ (0.47) | $ (0.38) | $ (0.14) | $ (0.21) | $ (0.69) | $ (0.30) | $ (0.12) | $ (0.22) | $ (0.24) | $ (1.66) | $ (1.60) | $ (1.60) | $ (1.55) | $ (1.04) | $ (0.96) | $ (1.35) | $ (0.91) | $ (6.59) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Thousands | Nov. 12, 2021USD ($)Transaction | Mar. 26, 2021USD ($)shares | Jan. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($)Dayshares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) |
Subsequent Event [Line Items] | |||||||||
Payments to acquire real estate | $ | $ 59,000 | ||||||||
Number of real estate transactions | 5 | 15 | |||||||
Proceeds from issuance of common stock, net | $ | $ 3,583,025 | $ 556,857 | $ 853,205 | $ 761,712 | $ 164,674 | ||||
Common Stock Class T | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 4,009,638 | 2,463,182 | 1,412,563 | ||||||
Common Stock Class S | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 121,643,389 | 46,431,661 | 26,164,794 | ||||||
Common Stock Class D | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 18,843,158 | 2,847,097 | 1,653,094 | ||||||
Common Stock Class I | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 114,807,327 | 39,152,913 | 16,114,284 | ||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Payments to acquire real estate | $ | $ 4,900,000 | $ 134,800 | |||||||
Loan originated to acquire real estate post year end | $ | $ 500,400 | ||||||||
Subsequent Event | Revolving Credit Facility and Line of Credit | Barclays RA | |||||||||
Subsequent Event [Line Items] | |||||||||
Borrowings to fund acquisition | $ | 758,900 | ||||||||
Subsequent Event | IPO [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from issuance of common stock, net | $ | $ 6,900,000 | ||||||||
Subsequent Event | Common Stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 120,404,905 | ||||||||
Proceeds from issuance of common stock, post 12/31 | $ | $ 2,500,000 | ||||||||
Subsequent Event | Common Stock Class T | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 2,850,070 | ||||||||
Subsequent Event | Common Stock Class S | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 61,954,369 | ||||||||
Subsequent Event | Common Stock Class D | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 4,699,738 | ||||||||
Subsequent Event | Common Stock Class I | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 50,900,728 |