Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Feb. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 000-56428 | |
Entity Registrant Name | Brookfield Real Estate Income Trust Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 82-2365593 | |
Entity Address, Address Line One | 250 Vesey Street | |
Entity Address, Address Line Two | 15th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10281 | |
City Area Code | 212 | |
Local Phone Number | 417-7000 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
ICFR Auditor Attestation Flag | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 93,119,734 | |
Documents Incorporated by Reference | Part III of this annual report on Form 10-K incorporates information by reference from the registrant’s definitive proxy statement with respect to its 2023 annual meeting of stockholders to be filed with the Securities and Exchange Commission within 120 days after the close of the registrant’s fiscal year. | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0001713407 | |
Entity Public Float | $ 0 | |
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Investments in real estate, net | $ 1,580,964 | $ 1,065,758 |
Investments in real estate-related loans and securities, net | 332,654 | 55,074 |
Investments in unconsolidated entities | 80,591 | 129,671 |
Intangible assets, net | 44,695 | 49,152 |
Cash and cash equivalents | 61,824 | 29,989 |
Restricted cash | 18,175 | 30,795 |
Accounts and other receivables, net | 8,382 | 3,756 |
Other assets | 23,188 | 10,518 |
Total Assets | 2,150,473 | 1,374,713 |
Liabilities and Equity | ||
Mortgage loans, secured term loan and secured credit facility, net | 1,054,297 | 733,793 |
Unsecured revolving credit facility | 0 | 105,000 |
Due to affiliates | 52,294 | 35,890 |
Intangible liabilities, net | 27,475 | 28,384 |
Accounts payable, accrued expenses and other liabilities | 39,591 | 16,223 |
Subscriptions received in advance | 8,166 | 24,381 |
Total Liabilities | 1,181,823 | 943,671 |
Commitments and Contingencies | 0 | 0 |
Redeemable non-controlling interests attributable to OP unitholders | 990 | 200,086 |
Stockholders’ Equity | ||
Preferred stock, $0.01 par value per share, 50,000 shares authorized; no shares issued nor outstanding at December 31, 2022 and December 31, 2021, respectively | 0 | 0 |
Additional paid-in capital | 1,063,038 | 249,426 |
Accumulated deficit | (100,709) | (23,608) |
Total Stockholders’ Equity | 963,214 | 226,062 |
Non-controlling interests attributable to third party joint ventures | 4,071 | 4,519 |
Non-controlling interests attributable to preferred stockholders | 375 | 375 |
Total Equity | 967,660 | 230,956 |
Total Liabilities and Stockholders’ Equity | $ 2,150,473 | $ 1,374,713 |
Common Stock, Shares, Outstanding (in shares) | 91,689,000 | 26,612,000 |
Variable Interest Entity, Primary Beneficiary | ||
Assets | ||
Investments in real estate, net | $ 223,810 | $ 230,635 |
Intangible assets, net | 5,724 | 7,312 |
Cash and cash equivalents | 2,243 | 2,940 |
Restricted cash | 7,849 | 5,414 |
Accounts and other receivables, net | 3,652 | 598 |
Other assets | 655 | 2,866 |
Total Assets | 243,933 | 249,765 |
Liabilities and Equity | ||
Mortgage loans, secured term loan and secured credit facility, net | 177,354 | 177,150 |
Intangible liabilities, net | 25 | 45 |
Accounts payable, accrued expenses and other liabilities | 4,755 | 4,317 |
Total Liabilities | 182,134 | 181,512 |
Common Stock Class S | ||
Stockholders’ Equity | ||
Common stock | $ 367 | $ 200 |
Common Stock, Shares, Outstanding (in shares) | 36,704,000 | 20,046,000 |
Common stock, shares issued (in shares) | 36,704,000 | 20,046,000 |
Class I common stock | ||
Stockholders’ Equity | ||
Common stock | $ 424 | $ 28 |
Common Stock, Shares, Outstanding (in shares) | 42,397,000 | 2,825,000 |
Common stock, shares issued (in shares) | 42,397,000 | 2,825,000 |
Class T common stock | ||
Stockholders’ Equity | ||
Common stock | $ 0 | $ 0 |
Common Stock, Shares, Outstanding (in shares) | 0 | 0 |
Common stock, shares issued (in shares) | 0 | |
Class D common stock | ||
Stockholders’ Equity | ||
Common stock | $ 0 | $ 0 |
Common Stock, Shares, Outstanding (in shares) | 36,000 | 0 |
Common stock, shares issued (in shares) | 36,000 | |
Class C common stock | ||
Stockholders’ Equity | ||
Common stock | $ 94 | $ 16 |
Common Stock, Shares, Outstanding (in shares) | 9,343,000 | 1,644,000 |
Common stock, shares issued (in shares) | 9,343,000 | 1,644,000 |
Class E common stock | ||
Stockholders’ Equity | ||
Common stock | $ 0 | $ 0 |
Common Stock, Shares, Outstanding (in shares) | 3,210,000 | 2,098,000 |
Common stock, shares issued (in shares) | 3,210,000 | 2,098,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common Stock, Shares, Outstanding (in shares) | 91,689,000 | 26,612,000 |
Common Stock Class S | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 225,000,000 | |
Common stock, shares issued (in shares) | 36,704,000 | 20,046,000 |
Common Stock, Shares, Outstanding (in shares) | 36,704,000 | 20,046,000 |
Class I common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 250,000,000 | |
Common stock, shares issued (in shares) | 42,397,000 | 2,825,000 |
Common Stock, Shares, Outstanding (in shares) | 42,397,000 | 2,825,000 |
Class T common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 225,000,000 | |
Common stock, shares issued (in shares) | 0 | |
Common Stock, Shares, Outstanding (in shares) | 0 | 0 |
Class D common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 100,000,000 | |
Common stock, shares issued (in shares) | 36,000 | |
Common Stock, Shares, Outstanding (in shares) | 36,000 | 0 |
Class C common stock | ||
Common stock, par value (in dollars per share) | $ 0 | |
Common stock, shares authorized (in shares) | 100,000,000 | |
Common stock, shares issued (in shares) | 9,343,000 | 1,644,000 |
Common Stock, Shares, Outstanding (in shares) | 9,343,000 | 1,644,000 |
Class E common stock | ||
Common stock, par value (in dollars per share) | $ 0 | |
Common stock, shares authorized (in shares) | 100,000,000 | |
Common stock, shares issued (in shares) | 3,210,000 | 2,098,000 |
Common Stock, Shares, Outstanding (in shares) | 3,210,000 | 2,098,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Operating Leases, Income Statement, Lease Revenue | $ 108,652 | $ 34,787 | $ 24,145 |
Other revenues | 9,616 | 2,591 | 1,141 |
Total revenues | 118,268 | 37,378 | 25,286 |
Expenses | |||
Rental property operating | 41,302 | 15,465 | 10,211 |
General and administrative | 9,562 | 7,057 | 3,474 |
Organizational expenses | 0 | 3,459 | 0 |
Management fee | 10,512 | 2,651 | 1,171 |
Performance fee | 6,566 | 5,143 | 2,215 |
Performance Participation Allocation | 0 | 2,346 | 0 |
Depreciation and amortization | 55,684 | 18,370 | 13,481 |
Total expenses | 123,626 | 54,491 | 30,552 |
Other (expense) income | |||
Income from real estate-related loans and securities | 11,322 | 5,442 | 4,908 |
Interest expense | (39,718) | (6,758) | (4,948) |
Realized gain on real estate investments, net | 726 | 21,493 | 144 |
Unrealized (loss) gain on investments, net | (16,750) | 1,837 | 2,417 |
Realized gain on financial instruments | 10,572 | 0 | 0 |
Total other (expense) income | (33,848) | 22,014 | 2,521 |
Net (loss) income | (39,206) | 4,901 | (2,745) |
Net loss attributable to non-controlling interests in third party joint ventures | 148 | 183 | 307 |
Net income attributable to non-controlling interests - preferred stockholders | (24) | 0 | 0 |
Net loss attributable to redeemable non-controlling interests | 4,669 | (2,578) | 0 |
Net loss attributable to stockholders | $ (34,413) | $ 2,506 | $ (2,438) |
Basic (in dollars per share) | $ (0.55) | $ 0.11 | $ (0.13) |
Diluted (in dollars per share) | $ (0.55) | $ 0.11 | $ (0.13) |
Weighted average number of shares outstanding, basic (in shares) | 62,594 | 23,038 | 18,896 |
Weighted average number of shares outstanding, diluted (in shares) | 62,594 | 23,038 | 18,896 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Total Stockholders’ Equity | Common Stock | Common Stock Class I common stock | Common Stock Common Stock Class S | Common Stock Class C common stock | Common Stock Class T common stock | Common Stock Class D common stock | Additional Paid-In Capital | Accumulated Deficit | Non-controlling Interests Attributable to Third Party Joint Ventures | Non-controlling Interests Attributable to Preferred Shareholders |
Beginning Balance at Dec. 31, 2019 | $ 145,418 | $ 140,070 | $ 91 | $ 59 | $ 0 | $ 0 | $ 145,350 | $ (5,430) | $ 5,348 | $ 0 | ||
Common stock issued | 80,970 | 80,970 | $ 9 | 70 | 80,891 | |||||||
Stock-based compensation | 72 | 72 | 72 | |||||||||
Distribution reinvestment | 2,214 | 2,214 | 2 | 2,212 | ||||||||
Contributions from non-controlling interests | 3,123 | 3,123 | ||||||||||
Distributions | (7,757) | (7,311) | (7,311) | (446) | ||||||||
Common stock repurchased | (25,855) | (25,855) | (25) | (1) | (25,829) | |||||||
Offering costs | (2,256) | (2,256) | (2,256) | |||||||||
Net income (loss) | (2,745) | (2,438) | (2,438) | (307) | ||||||||
Ending Balance at Dec. 31, 2020 | 193,184 | 185,466 | 75 | 130 | 0 | 0 | 200,440 | (15,179) | 7,718 | 0 | ||
Common stock issued | 144,402 | 144,402 | 22 | 72 | $ 16 | 144,292 | ||||||
Preferred equity issued | 375 | 375 | ||||||||||
Stock-based compensation | 152 | 152 | 152 | |||||||||
Distribution reinvestment | 5,238 | 5,238 | 4 | 5,234 | ||||||||
Contributions from non-controlling interests | 569 | 569 | ||||||||||
Distributions | (11,621) | (10,936) | (10,936) | (685) | ||||||||
Adjustment to non-controlling interests related to Ezlyn disposition | (2,900) | (2,900) | ||||||||||
Common stock repurchased | (76,925) | (76,925) | (69) | (6) | (76,850) | |||||||
Offering costs | (18,636) | (18,636) | (18,636) | |||||||||
Net income (loss) | 4,901 | 5,084 | 5,084 | (183) | ||||||||
Allocation to redeemable non-controlling interests | (7,783) | (7,783) | (5,205) | (2,578) | ||||||||
Ending Balance at Dec. 31, 2021 | 230,956 | 226,062 | 28 | 200 | 16 | 0 | 249,427 | (23,609) | 4,519 | 375 | ||
Common stock issued | 931,638 | 931,638 | 414 | 179 | $ 78 | 930,967 | ||||||
Stock-based compensation | 323 | 323 | 323 | |||||||||
Distribution reinvestment | 23,356 | 23,356 | 8 | 8 | 23,340 | |||||||
Contributions from non-controlling interests | 198 | 198 | ||||||||||
Distributions | (43,250) | (42,728) | (42,728) | (498) | (24) | |||||||
Common stock repurchased | (70,284) | (70,284) | $ (26) | (20) | (70,238) | |||||||
Offering costs | (21,596) | (21,596) | (21,596) | |||||||||
Net income (loss) | (39,206) | (39,082) | (39,082) | (148) | 24 | |||||||
Allocation to redeemable non-controlling interests | (44,475) | (44,475) | (49,144) | 4,669 | ||||||||
Ending Balance at Dec. 31, 2022 | $ 967,660 | $ 963,214 | $ 424 | $ 367 | $ 94 | $ 0 | $ 1,063,079 | $ (100,750) | $ 4,071 | $ 375 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Cash flows from operating activities: | |||
Net loss | $ (39,206,000) | $ 4,901,000 | $ (2,745,000) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 55,684,000 | 18,370,000 | 13,481,000 |
Management fees | 10,512,000 | 2,627,000 | 1,171,000 |
Performance fees | 6,566,000 | 5,143,000 | 2,215,000 |
Performance Participation Allocation | 0 | 2,346,000 | 0 |
Organization costs | 0 | 3,459,000 | 0 |
Amortization of above and below market leases and lease inducements | (963,000) | 106,000 | (103,000) |
Amortization of restricted stock grants | 323,000 | 88,000 | 72,000 |
Amortization of deferred financing costs | 4,534,000 | 309,000 | 212,000 |
Amortization of origination fees and discount | (250,000) | (176,000) | (453,000) |
Paid-in-kind interest | 195,000 | (1,022,000) | 0 |
Net gain on disposition of real estate | 0 | (19,496,000) | 0 |
Realized gain on investments in real estate-related loans and securities | (726,000) | (1,902,000) | (144,000) |
Unrealized loss (gain) on investments | 16,750,000 | (1,271,000) | (2,417,000) |
Distributions of earnings from unconsolidated entities | 3,256,000 | 0 | 0 |
Changes in assets and liabilities: | |||
Increase in lease inducements and origination costs | (713,000) | (171,000) | 0 |
Increase in other assets | (101,000) | (1,685,000) | (795,000) |
Increase in accounts and other receivables | (4,135,000) | (694,000) | (1,305,000) |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 10,620,000 | 5,890,000 | (163,000) |
Increase (decrease) in due to affiliates | 3,011,000 | (1,101,000) | 296,000 |
Net cash provided by operating activities | 65,357,000 | 15,721,000 | 9,322,000 |
Cash flows from investing activities | |||
Acquisitions of real estate | (547,399,000) | (649,661,000) | (105,137,000) |
Purchase of real estate-related loans and securities | (296,374,000) | (29,947,000) | (33,297,000) |
Proceeds from sale of real estate-related loans and securities | 8,974,000 | 42,718,000 | 11,771,000 |
Proceeds from principal repayments of real estate-related loans | 7,382,000 | 8,978,000 | 0 |
Proceeds from disposition of real estate | 0 | 8,600,000 | 0 |
Refund (payment) of investment acquisition deposits | 3,202,000 | (6,321,000) | 0 |
Capital improvements to real estate | 15,308,000 | 2,166,000 | 1,980,000 |
Proceeds from sale of preferred membership interests | 28,831,000 | 5,000,000 | 0 |
Purchase of trading securities | (38,188,000) | 0 | 0 |
Proceeds from sale of trading securities | 22,350,000 | 0 | 0 |
Net cash used in investing activities | (826,530,000) | (622,799,000) | (128,643,000) |
Cash flows from financing activities: | |||
Borrowings from mortgage loans and secured term loan | 664,960,000 | 315,216,000 | 71,152,000 |
Borrowings from secured credit facility | 390,419,000 | 244,402,000 | 0 |
Repayment of mortgage loans | (214,750,000) | (132,550,000) | 0 |
Repayment of secured credit facility | (515,836,000) | 0 | 0 |
Proceeds from affiliate line of credit | 43,000,000 | 105,000,000 | 0 |
Repayments of affiliate line of credit | (148,000,000) | 0 | 0 |
Proceeds from issuance of OP units | 38,000,000 | 45,000,000 | 0 |
Proceeds from issuance of preferred units | 0 | 375,000 | 0 |
Payment of deferred financing costs | (8,824,000) | (2,550,000) | (655,000) |
Proceeds from issuance of common stock | 612,578,000 | 111,783,000 | 80,160,000 |
Repurchases of common stock | (66,005,000) | (71,298,000) | (23,217,000) |
Subscriptions received in advance | 8,166,000 | 24,381,000 | 0 |
Payment of organizational and offering costs | (7,591,000) | (2,626,000) | (1,498,000) |
Distributions to non-controlling interests | (498,000) | (686,000) | (446,000) |
Contributions from non-controlling interests | 198,000 | 569,000 | 3,123,000 |
Distributions | (15,405,000) | (5,173,000) | (4,329,000) |
Distributions to non-controlling interests attributable to preferred stockholders | (24,000) | 0 | 0 |
Net cash provided by financing activities | 780,388,000 | 631,843,000 | 124,290,000 |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid | 37,010,000 | 6,273,000 | 4,710,000 |
Due to affiliates | 52,294,000 | 35,890,000 | |
Net change in cash and cash-equivalents and restricted cash | 19,215,000 | 24,765,000 | 4,969,000 |
Cash and cash-equivalents and restricted cash, beginning of period | 60,784,000 | 36,019,000 | 31,050,000 |
Cash and cash-equivalents and restricted cash, end of period | 79,999,000 | 60,784,000 | 36,019,000 |
Cash and cash equivalents | 61,824,000 | 29,989,000 | 32,740,000 |
Restricted cash | 18,175,000 | 30,795,000 | 3,279,000 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Total | 79,999,000 | 60,784,000 | 36,019,000 |
Other Noncash Investing and Financing Items [Abstract] | |||
Issuance of Brookfield REIT OP units as consideration for acquisitions of real estate | 0 | 148,175,000 | 0 |
Issuance of Class E common stock as consideration for acquisitions of real estate | 0 | 25,000,000 | 0 |
Disposition of real estate | 0 | 77,071,000 | 0 |
Preferred membership interest acquired from disposition of real estate | 0 | 33,831,000 | 0 |
Transfer of mortgage loan associated with disposition | 0 | 52,807,000 | 0 |
Assumption of mortgages in conjunction with acquisitions of real estate | 0 | 132,550,000 | 0 |
Accrued distributions | 3,951,000 | 1,302,000 | 769,000 |
Accrued stockholder servicing fee due to affiliate | 18,365,000 | 14,219,000 | 96,000 |
Distribution reinvestment | 23,356,000 | 5,238,000 | 2,214,000 |
Management fees paid in shares | 0 | 2,390,000 | 810,000 |
Allocation to redeemable non-controlling interests | 44,475,000 | 7,783,000 | |
Accrued capital expenditures | 576,000 | 1,192,000 | 980,000 |
Accrued repurchases in accounts payable | 10,992,000 | 1,594,000 | 0 |
Accrued repurchases in due to affiliates | 0 | 6,682,000 | 2,638,000 |
Accrued offering costs | 1,232,000 | 5,217,000 | 661,000 |
Additions of furniture, fixtures and equipment in lieu of rent | $ 0 | $ 0 | $ 421,000 |
Organization and Business Purpo
Organization and Business Purpose | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Purpose | Organization and Business Purpose Brookfield Real Estate Income Trust Inc. (formerly Oaktree Real Estate Income Trust, Inc.) (the “Company”) was formed on July 27, 2017 as a Maryland corporation and has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”), for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2019. The Company invests primarily in well-located, high-quality real estate properties that generate strong current cash flow and could further appreciate in value through proactive, best-in-class asset management. To a lesser extent, the Company invests in real estate-related debt investments, including real estate-related loans and real estate-related securities. Brookfield REIT OP GP LLC, the Company’s wholly owned subsidiary, is the sole general partner of Brookfield REIT Operating Partnership L.P. (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 Brookfield REIT Adviser LLC (the “Adviser”), an affiliate of Brookfield Asset Management Ltd. (together with its affiliates, “Brookfield”). Prior to the Adviser Transition (as defined below) that occurred on November 2, 2021, the Company was externally managed by Oaktree Fund Advisors, LLC (the “Oaktree Adviser” or the “Sub-Adviser”), an affiliate of Oaktree Capital Management, L.P. (“Oaktree”). On July 15, 2021, the Company entered into an adviser transition agreement (the “Adviser Transition Agreement”) with the Adviser and the Oaktree Adviser. On November 2, 2021, pursuant to the terms of the Adviser Transition Agreement, among other things, the Company (i) accepted the resignation of the Oaktree Adviser as its external adviser under the previous advisory agreement between the Company and the Oaktree Adviser, and (ii) entered into a new advisory agreement (the “Advisory Agreement”) with the Adviser (together, with the related transactions authorized by the Company’s board of directors or otherwise contemplated in connection with the Company’s entry into the Adviser Transition Agreement, referred to collectively as the “Adviser Transition”). In addition, on November 2, 2021, the Company, the Adviser and the Operating Partnership entered into sub-advisory agreements with the Oaktree Adviser, pursuant to which the Oaktree Adviser (i) manages certain of the Company’s real estate properties and real estate-related debt investments that were acquired by the Company prior to the Adviser Transition and (ii) selects and manages the Company’s liquid assets. The Company had previously registered with the Securities and Exchange Commission (the “SEC”) its initial public offering of up to $2.0 billion in shares of common stock (the “Initial Public Offering”), which was initially declared effective on April 30, 2018 and terminated on November 2, 2021. The Company subsequently registered a follow-on offering with the SEC of up to $7.5 billion in shares of common stock, consisting of up to $6.0 billion in shares in its primary offering and up to $1.5 billion in shares pursuant to its distribution reinvestment plan, which was declared effective on November 2, 2021 (the “Current Offering” and with the Initial Public Offering, the “Offering”). Pursuant to the Offering, the Company is offering to the public any combination of four classes of shares of its common stock, Class T shares, Class S shares, Class D shares and Class I shares, with a dollar value up to the maximum offering amount. The publicly offered share classes have different upfront selling commissions, dealer manager fees and ongoing stockholder servicing fees. The purchase price per share for each class of common stock varies and generally equals the Company’s prior month’s net asset value (“NAV”) per share, as determined monthly, plus applicable upfront selling commissions and dealer manager fees. The Company intends to continue selling shares on a monthly basis. In addition to the Offering, the Company is conducting private offerings of Class I and Class C shares to feeder vehicles that offer interests in such vehicles to non-U.S. persons. The offer and sale of Class I and Class C shares to the feeder vehicles is exempt from the registration provisions of the Securities Act of 1933, as amended (the “Securities Act”) by virtue of Section 4(a)(2) and Regulation S thereunder. The Company is also offering Class E shares to Brookfield and certain of its affiliates in one or more private offerings. The offer and sale of Class E shares is exempt from the registration provisions of the Securities Act by virtue of Section 4(a)(2) of the Securities Act. As of December 31, 2022, the Company owned 19 investments in real estate, one investment in an unconsolidated real estate venture, three investments in real estate-related loans, and 76 investments in real estate-related debt securities. The Company currently operates in six reportable segments: multifamily, office, logistics, single-family rental, net lease and real estate-related loans and securities. During the year ended December 31, 2022, the Company made changes to its reportable segments as detailed in Note 14. Investments in unconsolidated entities are included in the respective property segment as further described in Note 4. Financial results by segment are reported in Note 14. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company, the Company's subsidiaries and joint ventures in which the Company has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. Certain comparative figures have been reclassified to conform to the current year presentation. The Company consolidates all entities in which it retains a controlling financial interest through majority ownership or voting rights and entities that meet the definition of a variable interest entity (“VIE”) for which it is deemed to be the primary beneficiary. The Company is the primary beneficiary of a VIE when it has (i) the power to direct the activities of a VIE that most significantly influence the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE, or the right to receive benefits from the VIE that potentially could be 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 as its sole general partner. The Company also consolidates all VIEs for which it is the primary beneficiary. 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. Equity method investments for which the Company has not elected a fair value option (“FVO”) are initially recorded at cost and subsequently adjusted for the Company’s pro-rata share of net income, contributions, and distributions. When the Company elects the FVO, the Company records its share of net asset value of the entity and any related unrealized gains and losses. The Operating Partnership and the Company’s joint ventures are considered to be VIEs. The Company consolidates these entities, excluding its equity method investments, because it has the ability to direct the most significant activities of the entities such as purchases, dispositions, financings, budgets, and overall operating plans. For consolidated joint ventures, the non-controlling partner’s share of the assets, liabilities, and operations of each joint venture is included in non-controlling interests as equity of the Company. The non-controlling joint venture partner’s interest is generally computed as the joint venture partner’s ownership percentage. Certain of the joint ventures formed by the Company provide the other partner a profits interest based on certain internal rate of return hurdles being achieved. Any profits interest due to the other partner is reported within non-controlling interest. Use of Estimates The preparation of the 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 and accrued expenses at the date of the balance sheet. The Company believes the estimates and assumptions underlying the consolidated financial statements are reasonable and supportable based on the information available as of December 31, 2022. 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 does not constitute a business, the Company accounts for the transaction as an asset acquisition. The guidance for business combinations states that when substantially all of the fair value of the gross assets to be acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or set of assets is not a business. The Company evaluates each real estate acquisition to determine whether the integrated set of acquired assets and activities meets the definition of a business. Generally, acquisitions of real estate or in-substance real estate are not expected to meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings and related intangible assets) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. All property acquisitions to date have been accounted for as asset acquisitions because substantially all of the fair value was concentrated in the land, buildings and related intangible assets. The Company capitalizes acquisition-related costs associated with asset acquisitions. Upon acquisition of a property, the Company assesses the fair value of the acquired tangible and intangible assets (including land, buildings, tenant improvements, above- or below-market leases, acquired in-place leases, and other 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 estimated fair value of acquired in-place leases include the costs the Company would have incurred to lease the properties to their occupancy levels at the date of acquisition. Such estimates include the fair value of leasing commissions, legal costs and other direct costs that would be incurred to lease the properties to such occupancy levels. The Company evaluates avoided costs over the time period over which occupancy levels at the date of acquisition would be achieved had the property been acquired vacant. Such evaluation includes an estimate of the net market-based rental revenues and net operating costs (primarily consisting of real estate taxes, insurance and utilities) that would be incurred during the lease-up period. Acquired in-place leases are amortized over the remaining lease terms as a component of depreciation and amortization expense. For acquired in-place leases, above- and below-market lease values are recorded based on the present value (using an interest rate that reflects the risks associated with the lease acquired) of the difference between the contractual amounts to be paid pursuant to the in-place leases and management’s estimate of fair market value lease rates for the corresponding in-place leases. The values of acquired above- and below-market leases are amortized over the terms of the related leases and recognized as either increases (for below-market leases) or decreases (for above-market leases) to rental revenue. Should a tenant terminate its lease, the unamortized portion of the in-place lease value is charged to amortization expense and the unamortized portion of the above- or below-market lease value is charged to rental revenue. Significant improvements to properties are capitalized and depreciated over their estimated useful life. Expenditures for ordinary repairs and maintenance are expensed to operations as incurred 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 30-40 years Building and site improvements 5-21 years Furniture, fixtures and equipment 1-9 years Tenant improvements Shorter of estimated useful life or lease term In-place lease intangibles Over lease term Above and below market leases Over lease term Lease origination costs Over lease term Present value of tax abatement savings Over tax abatement period 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’s management reviews its real estate properties for impairment when there is an event or change in circumstances that indicates an impaired value. In reviewing the portfolio, the Company’s management examines the type of asset, the economic situation in the area in which the asset is located, the economic situation in the industry in which the tenant is involved and the timeliness of the payments made by the tenant under its lease, changes in holding period, as well as any current correspondence that may have been had with the tenant, including property inspection reports. For each real estate asset for which indicators of impairment are identified, the Company performs a recoverability analysis that compares future undiscounted cash flows expected to result from the Company’s use and eventual disposition of the asset to its carrying value. If the undiscounted cash flow analysis yields an amount which is less than the asset’s carrying amount, an impairment loss will be recorded equal to the amount by which the carrying value of the asset exceeds its estimated fair 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 directly 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. During the periods presented, no such impairment occurred. Assets Held for Sale The Company classifies the assets and liabilities related to its real estate investments as held for sale when a sale is probable to occur within one year. The Company considers a sale to be probable when a binding contract has been executed, the buyer has posted a non-refundable deposit, and there are limited contingencies to closing. The Company classifies held for sale assets and liabilities at the lower of depreciated cost or fair value less closing costs. There were no properties held for sale as of December 31, 2022 and December 31, 2021. Investments in Unconsolidated Entities Investments in unconsolidated entities are initially recorded at cost and subsequently adjusted for the Company’s pro-rata share of net income, contributions, and distributions. The Company’s investments in unconsolidated entities are periodically assessed for impairment and an impairment loss would be recorded when the fair value of the investment falls below the carrying value and such decline is determined to be other-than-temporary. For further details on the Company’s investments in unconsolidated entities, see Note 4 to the Company’s Consolidated Financial Statements. The Company has elected the FVO for its investment in unconsolidated entities and therefore reports this investment at fair value. As such, the resulting unrealized gains and losses are recorded as a component of Unrealized (loss) gain on investments, net on the Company’s Consolidated Statements of Operations. Investments in Real Estate-Related Loans and Securities Real estate-related loans that the Company has the intent and ability to hold for the foreseeable future are classified as held for investment. Originated loans are recorded at amortized cost, or outstanding unpaid principal balance less net deferred loan fees. Net deferred loan fees include unamortized origination and other fees charged to the borrower less direct incremental loan origination costs incurred by the Company. Purchased loans are recorded at amortized cost, or unpaid principal balance plus purchase premium or less unamortized discount. Costs to purchase loans are expensed as incurred. Interest income related to the Company’s loans is recognized based upon contractual interest rate and unpaid principal balance of the loans as a component of Income from real estate-related loans and securities on the accompanying Consolidated Statements of Operations. Net deferred loan fees on originated loans are deferred and amortized as adjustments to interest income over the expected life of the loans using the effective yield method. Premium or discount on purchased loans are amortized as adjustments to interest income over the expected life of the loans using the effective yield method. When a loan is prepaid, prepayment fees and any excess of proceeds over the carrying amount of the loan are recognized as additional interest income. The Company assesses the collectibility of its real estate-related loans to estimate credit losses over the contractual term of each loan. The Company’s estimate of credit losses is based relevant factors, including historical realized loss rates, current market conditions, and reasonable and supportable forecasts that affect the collectibility of its investments. The Company also considers, among other things, payment status, lien position, borrower or tenant financial resources, and underlying collateral. The Company recognizes an allowance for credit loss when the carrying amount of a loan differs from the amount expected to be collected. For the year ended December 31, 2022, no allowance for expected credit loss has been recognized. The Company has elected to classify its real estate debt securities as trading securities and carry such investments at fair value. As such, the resulting unrealized gains and losses of such securities are recorded as a component of Unrealized (loss) gain on investments, net on the Company’s Consolidated Statements of Operations. Interest income from trading securities is recognized based on the stated terms of the security. Interest income from real estate-related debt securities is recorded as a component of Income from real estate-related loans and securities on the accompanying Consolidated Statements of Operations. Revenue Recognition Rental revenue primarily consists of base rent arising from tenant leases at the Company’s properties. Base rent is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. The Company begins to recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased space. Other rental revenues include amounts due from tenants for costs related to common area maintenance, real estate taxes, and other recoverable costs included in lease agreements. The Company recognizes the reimbursement of such costs incurred as tenant reimbursement income. The Company evaluates the collectability of receivables related to rental revenue on an individual lease basis. In making this determination, the Company considers the length of time a receivable has been outstanding, tenant creditworthiness, payment history, available information about the financial condition of the tenant, and current economic trends, among other factors. Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue. 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, which is held 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, construction reserves and insurance in connection with mortgages at certain of the Company’s property and tenant security deposits. Trading Securities Trading securities consist of U.S. government securities that are available to support the Company’s current operations and liquidity. Trading securities have been classified as available-for-sale securities and are measured at fair value. As such, the resulting unrealized gains and losses of such securities are recorded as a component of Unrealized (loss) gain on investments, net on the Company’s Consolidated Statements of Operations. Interest income from trading securities is recognized based on the stated terms of the security and is recorded as a component of Income from real estate-related loans and securities on the accompanying Consolidated Statements of Operations. Foreign Currency In the normal course of business, the Company makes investments in real estate outside the United States (“U.S.”) through subsidiaries that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities of these foreign subsidiaries are translated to U.S. dollars at the prevailing exchange rate at the reporting date and income, expenses, gains, and losses are translated at the average exchange rate over the applicable period. Gains and losses from translation of foreign denominated transactions into U.S. dollars are included in current results of operations as a component of Unrealized (loss) gain on investments, net on the Company’s Consolidated Statements of Operations. 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 and term loans are recorded as an offset to the related liability and amortized over the term of the applicable financing instruments. Deferred financing costs related to the Company’s 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 agreements. Deferred leasing costs incurred in connection with new leases, which consist primarily of brokerage and legal fees, are recorded as a component of Other assets on the Company’s Consolidated Balance Sheets and amortized over the life of the related lease. Derivative Instruments In the normal course of business, the Company is exposed to the effect of interest rate changes and, with regard to its non-U.S. investments, changes in foreign currency exchange rates. The Company seeks to manage these risks by following established risk management policies and procedures including the use of derivatives to hedge interest rate and currency rate risk. These financial instruments may include interest-rate swaps and other derivative contracts. The Company recognizes all derivatives as either assets or liabilities in the accompanying Consolidated Balance Sheets and measures those instruments at fair value. Changes in the fair values of the Company’s derivatives are recorded in current-period earnings as a component of Unrealized (loss) gain on investments, net on the accompanying Consolidated Statements of Operations. The Company recognized $3.4 million and $1.5 million of net unrealized gains and $0.6 million of net unrealized loss on its derivative instruments during the years ended December 31, 2022, 2021 and 2020, respectively. Realized gains or losses on foreign currency derivatives are recorded as Realized gain on financial instruments in the accompanying Consolidated Statements of Operations. The Company recognized $10.6 million of realized gains on its foreign currency contracts during the year ended December 31, 2022. The Company did not have any realized gains on foreign currency contracts during the years ended 2021 and 2020. As of December 31, 2022, the Company’s derivative instruments consisted of the following ($ and £ in thousands): Number of Instruments Notional Amount Weighted Average Strike Rate Weighted Average Maturity (years) Interest Rate Swaps 1 $ 33,800 0.7% 1.6 Interest Rate Caps 3 $ 170,350 4.3% 0.8 Foreign Currency Swap Contracts 1 £ 73,300 N/A 0.6 Fair Value Measurement 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 hierarchical 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 marketplace, 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-related securities and trading securities are reported at fair value. The Company generally determines the fair value of its investments in real estate-related securities and trading 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 securities such as real estate debt generally consider the attributes applicable to a particular class of the 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. The inputs used in determining the Company’s real estate-related securities and trading securities reported at fair value are considered Level 2. The Company’s derivative financial instruments are reported at fair value. The fair value of the Company’s interest rate swap is determined 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 fair value of the Company’s interest rate cap is determined 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 fair value of the Company’s foreign currency swap is 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. The inputs used in determining the Company’s derivative financial instruments reported at fair value are considered Level 2. The Company has elected the FVO for its equity method investment and therefore, reports this investment at fair value. As such, the resulting unrealized gains and losses are recorded as a component of Unrealized (loss) gain on investments, net on the Company’s Consolidated Statements of Operations. The Company separately values the assets and liabilities of the equity method investment. To determine the fair value of the assets of the equity method investments, the Company utilizes a discounted cash flow methodology, taking into consideration various factors including discount rate and exit capitalization rate. The Company determines the fair value of the indebtedness of the equity method investment by modeling the cash flows required by the debt agreements and discounting them back to the present value using an estimated market yield. Additionally, the Company considers current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. After the fair value of the assets and liabilities are determined, the Company applies its ownership interest to the net asset value and reflects this amount as its equity method investment at fair value. The inputs used in determining the Company’s equity method investment carried at fair value are considered Level 3. The Company’s carrying values of cash and cash equivalents, restricted cash, accounts receivable and other receivables, accounts payable, accrued liabilities and other liabilities approximate fair value because of the short-term nature of these instruments. The following table details the Company’s assets measured at fair value on a recurring basis ($ in thousands): December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Investments in real estate-related securities $ — $ 299,894 $ — $ 299,894 $ — $ 19,511 $ — $ 19,511 Investment in unconsolidated entities — — 80,591 80,591 — — 100,840 100,840 Derivatives — 4,349 — 4,349 — 1,514 — 1,514 Total $ — $ 304,243 $ 80,591 $ 384,834 $ — $ 21,025 $ 100,840 $ 121,865 The following table details the Company’s assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Investment in unconsolidated entities Balance as of December 31, 2021 $ 100,840 Distributions of earnings from unconsolidated entities (3,256) Unrealized loss on investments, net (16,993) Balance as of December 31, 2022 $ 80,591 Valuation of Liabilities Not Measured at Fair Value The 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, 2022, the fair value of the Company’s mortgage loans and other indebtedness was approximately $27.8 million below the outstanding principal balance. Income Taxes The Company believes that it qualifies to be taxed as a REIT for U.S. federal income tax purposes. The Company generally will not be subject to federal corporate income tax to the extent it distributes 90% of its taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. The Company has formed wholly-owned subsidiaries that are taxed as taxable REIT subsidiaries (“TRSs”) that are subject to taxation at the federal, state and local levels, as applicable. 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. The Company will account for applicable income taxes by utilizing the asset and liability method. As such, the Company will record 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 my not be realized. Organization and Offering Expenses Organizational expenses are expensed as incurred on the Company’s Consolidated Statements of Operations, and offering costs are charged to equity as incurred on the Company’s Consolidated Statements of Changes in Stockholders’ Equity. The Adviser and its affiliates advanced $12.5 million of organization and offering expenses on the Company’s behalf through July 5, 2022, and the Company reimburses the Adviser for all such advanced expenses ratably over the 60 months following July 6, 2022. Additionally, the Adviser has agreed to advance organization and offering costs from July 6, 2022 through July 5, 2023, and the Company will reimburse the Adviser for all such advanced expenses ratably over the 60 months following July 6, 2023. As of December 31, 2022, the Adviser has advanced $0.7 million of organization and offering expenses on the Company’s behalf for expenses paid from July 6, 2022 through December 31, 2022. Any amount due to the Adviser but not paid is recorded as a component of Due to affiliates on the Company’s Consolidated Balance Sheets. Earnings Per Share The Company uses the two-class method in calculating earnings per share ( “ EPS ” ) when it issues securities other than common stock that contractually entitle the holder to participate in dividends and earnings of the Company when, and if, the Company declares dividends on its common stock. Basic earnings per share ( “ Basic EPS ” ) for the Company ’ s common stock are computed by dividing net income allocable to common stockholders by the weighted average number of shares of common stock outstanding for the period, respectively. Diluted earnings per share ( “ Diluted EPS ” ) is calculated similarly, however, it reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower earnings per share amount. The Company includes unvested shares of restricted stock in the computation of diluted EPS by using the more d ilutive of the two-class method or treasury stock method. Any anti-dilutive securities are excluded from the diluted EPS calculation. For the years ended December 31, 2022 and 2021, there were no dilutive participating securities. Stockholder Servicing Fee The Company has entered into a dealer manager agreement with Brookfield Oaktree Wealth Solutions LLC, a registered broker-dealer affiliated with the Adviser (“Dealer Manager”), to serve as the dealer manager for the Current Offering. The Dealer Manager is entitled to receive upfront selling commissions and dealer manager fees of up to 3.5% of the transaction price and ongoing stockholder servicing fees of 0.85% per annum of the aggregate NAV for outstanding Class S and Class T shares with a limit of up to, in the aggregate, 8.75% of the gross proceeds from such shares. The Dealer Manager is entitled to receive upfront selling commissions of up to 1.5% of the transaction price and ongoing stockholder servicing fees of 0.25% per annum of the aggregate NAV for outstanding Class D shares with a limit of up to, in the aggregate, 8.75% of the gross proceeds from such shares. There are no upfront selling commissions, dealer manager fees or ongoing stockholder |
Investments in Real Estate
Investments in Real Estate | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Investments in Real Estate | Investments in Real Estate As of December 31, 2022 and 2021, investments in real estate, net, consisted of the following: ($ in thousands): December 31, 2022 December 31, 2021 Building and building improvements $ 1,321,137 $ 874,834 Land and land improvements 261,487 164,901 Tenant improvements 34,468 35,592 Furniture, fixtures and equipment 25,996 11,061 Accumulated depreciation (62,124) (20,630) Investments in real estate, net $ 1,580,964 $ 1,065,758 Acquisitions During the year ended December 31, 2022, the Company acquired $545.2 million of real estate investments, which were comprised of three multifamily properties, two logistics properties and 466 single-family rental properties. During the year ended December 31, 2021, the Company acquired $852.9 million of real estate investments, which were comprised of five multifamily properties, three logistics properties, one net-lease property and 14 single-family rental properties. The following table provides further details of the properties acquired during the years ended December 31, 2022 and 2021 ($ in thousands): Investment Ownership Interest Location Segment Acquisition Date Square Feet/Units Purchase Price (1) 1110 Key Federal Hill 100% Baltimore, MD Multifamily September 2021 224 $ 75,153 Domain 100% Orlando, FL Multifamily November 2021 324 74,157 The Burnham 100% Nashville, TN Multifamily November 2021 328 129,057 6123-6227 Monroe Ct 100% Morton Grove, IL Logistics November 2021 208,000 17,265 8400 Westphalia Road 100% Upper Marlboro, MD Logistics November 2021 100,000 27,961 McLane Distribution Center 100% Lakeland, FL Logistics November 2021 211,000 26,755 Flats on Front 100% Wilmington, NC Multifamily December 2021 273 97,728 Verso Apartments 100% Beaverton, OR Multifamily December 2021 172 74,216 DreamWorks Animation Studios 100% Glendale, CA Net Lease December 2021 497,000 326,743 Single-Family Rentals 100% Various Single-Family Rental Various 2021 14 3,840 2626 South Side Flats 100% Pittsburgh, PA Multifamily January 2022 264 92,459 2003 Beaver Road 100% Landover, MD Logistics February 2022 38,000 9,646 187 Bartram Parkway 100% Franklin, IN Logistics February 2022 300,000 28,912 The Parker 100% Alexandria, VA Multifamily March 2022 360 136,779 Briggs & Union 100% Mount Laurel, NJ Multifamily April 2022 490 158,648 Single-Family Rentals 100% Various Single-Family Rental Various 2022 466 123,995 $ 1,403,314 (1) Purchase price is inclusive of closing costs. The following table summarizes the purchase price allocation of the properties acquired during the years ended December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Building and building improvements $ 453,211 $ 660,098 Land and land improvements 78,095 145,611 Tenant improvements 1,232 24,991 Furniture, fixtures and equipment 9,530 6,308 In-place lease intangibles 5,664 32,519 Lease origination costs 902 8,535 Tax abatement intangible 2,195 3,054 Above-market lease intangibles 65 178 Below-market lease intangibles (454) (28,420) Total purchase price (1) 550,440 852,874 Assumed debt (2) — 132,550 Net purchase price $ 550,440 $ 720,324 (1) Purchase price is inclusive of closing costs. (2) Refer to Note 9 for additional details on the Company’s mortgage loans and indebtedness. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities The Company holds an investment in an unconsolidated joint venture that it has elected to account for using the FVO, as the Company’s ownership interest in the joint venture does not meet the requirements for consolidation. On November 2, 2021, the Company acquired a 20% interest in Principal Place, a net lease property located in London, United Kingdom, through an indirect interest in the joint venture that owns the property. As of December 31, 2022 and 2021, the fair value of the Company’s interest in Principal Place was $80.6 million and $100.8 million, respectively. On November 2, 2021, the Company sold its ownership interest in Ezlyn, a multifamily property, to an affiliate of the Oaktree Adviser for $42.4 million of consideration, consisting of $8.6 million of cash and a $33.8 million preferred equity interest in an affiliate of Oaktree. In connection with the Ezlyn disposition, the Company recognized a realized gain on sale of $19.5 million and recorded the preferred equity interest using the equity method of accounting. On December 31, 2021, the Company assigned $5.0 million of its preferred equity interest to the affiliate of the Oaktree Adviser for $5.0 million of cash. As of December 31, 2021, the Company’s carrying value of its preferred equity interest was $28.8 million. On January 18, 2022, the Company assigned its remaining $28.8 million preferred equity interest to the affiliate of the Oaktree Adviser for $28.8 million of cash. As of December 31, 2022 and 2021, investments in unconsolidated entities were $80.6 million and $129.7 million, respectively. The following tables provide summarized financial information of the joint venture that owns Principal Place as of and for the periods set forth below ($ in thousands): As of December 31, 2022 As of December 31, 2021 Total Assets $ 1,019,861 $ 1,133,943 Total Liabilities 602,652 640,810 Total Equity $ 417,209 $ 493,133 For the Year Ended December 31, 2022 For the period Total Revenues $ 46,146 $ 5,892 Total Expenses 51,318 9,286 Net Loss $ (5,172) $ (3,394) |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles The gross carrying amount and accumulated amortization of the Company’s intangible assets consisted of the following as of December 31, 2022 and 2021 ($ in thousands): Intangible assets December 31, 2022 December 31, 2021 In-place lease intangibles $ 33,141 $ 41,210 Lease origination costs 13,667 12,611 Lease inducements 1,708 1,708 Tax intangibles 5,249 3,054 Above-market lease intangibles 114 184 Total intangible assets 53,879 58,767 Accumulated amortization: In-place lease intangibles (4,823) (8,081) Lease origination costs (2,887) (973) Lease inducements (787) (534) Tax intangibles (669) (21) Above-market lease intangibles (18) (6) Total accumulated amortization (9,184) (9,615) Intangible assets, net $ 44,695 $ 49,152 Intangible liabilities: Below-market lease intangibles $ (28,919) $ (28,521) Accumulated amortization 1,444 137 Intangible liabilities, net $ (27,475) $ (28,384) The weighted average amortization periods of the Company’s intangible assets is 180 months and intangible liabilities is 266 months. The following table details the Company’s future amortization of intangibles for each of the next five years and thereafter as of December 31, 2022 ($ in thousands): In-place Lease Intangibles Above-market Lease Intangibles Other Intangibles Below-market Lease Intangibles 2023 $ 2,421 $ 18 $ 2,453 $ (1,348) 2024 2,012 18 2,305 (1,345) 2025 1,852 18 2,130 (1,340) 2026 1,675 18 1,848 (1,332) 2027 1,516 7 1,545 (1,327) Thereafter 18,842 17 6,000 (20,783) Total $ 28,318 $ 96 $ 16,281 $ (27,475) |
Investments in Real Estate-Rela
Investments in Real Estate-Related Loans and Securities | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Real Estate-Related Loans and Securities | Investments in Real Estate-Related Loans and Securities The following table summarizes the components of investments in real estate-related loans and securities as of December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Real estate-related loans $ 32,760 $ 35,563 Real estate-related securities 299,894 19,511 Total investments in real estate-related loans and securities $ 332,654 $ 55,074 The following tables detail the Company’s real estate-related loan investments as of December 31, 2022 and 2021 ($ in thousands). In November 2022, the borrower repaid the outstanding principal balance on the 111 Montgomery loan prior to maturity. December 31, 2022 Investment Collateral Interest Rate (1) Maturity Date Payment Terms Face Amount Unamortized Discount/Origination Fees Carrying Amount IMC/AMC Bond Investment International Markets Center L+6.15% December 2023 Principal due at maturity $ 25,000 $ (78) $ 24,922 The Avery Senior Loan (2) The Avery Condominium L+7.30% February 2023 (3) Principal due at maturity (4) 6,315 (5) 6,310 The Avery Mezzanine Loan (2) The Avery Condominium L+12.50% February 2023 (3) Principal due at maturity (4) 1,529 (1) 1,528 Total $ 32,844 $ (84) $ 32,760 (1) The term “L” refers to the one-month US dollar-denominated LIBOR. As of December 31, 2022, one-month LIBOR was equal to 4.39%. (2) The Company’s investment is held through its membership interest in an entity which aggregates the Company’s interest with interests held by other funds managed by the Sub-Adviser. The Company has been allocated its proportionate share of the loan based on its membership interest in the aggregating entity. (3) The Sub-Adviser is negotiating a loan modification with the borrower. (4) The loan agreement requires mandatory prepayments simultaneous with the closing of the sale of any condominium unit. During the year ended December 31, 2022, t he Company received aggregate net repayments of $3.1 million. December 31, 2021 Investment Collateral Interest Rate (1) Maturity Date Payment Terms Face Amount Unamortized Discount/Origination Fees Carrying Amount IMC/AMC Bond Investment International Markets Center L+6.15% December 2023 Principal due at maturity $ 25,000 $ (164) $ 24,836 111 Montgomery (2) The 111 Montgomery Street Condominium L+7.00% February 2023 Principal due at maturity (3) 1,440 (91) 1,349 The Avery Senior Loan (2) The Avery Condominium L+7.30% February 2023 Principal due at maturity (3) 7,656 (65) 7,591 The Avery Mezzanine Loan (2) The Avery Condominium L+12.50% February 2023 Principal due at maturity (3) 1,802 (15) 1,787 Total $ 35,898 $ (335) $ 35,563 (1) The term “L” refers to the one-month US dollar-denominated LIBOR. As of December 31, 2021, one-month LIBOR was equal to 0.10%. (2) The Company’s investment is held through its membership interest in an entity which aggregates the Company’s interest with interests held by other funds managed by the Sub-Adviser. The Company has been allocated its proportionate share of the loan based on its membership interest in the aggregating entity. (3) The loan agreement requires mandatory prepayments simultaneous with the closing of the sale of any condominium unit. During the year ended December 31, 2021, t he Company received aggregate net repayments of $5.8 million. The Company’s investments in real estate-related securities consist of commercial mortgage-backed securities (“CMBS”), residential mortgage-backed securities (“RMBS”), and corporate bonds. The following tables detail the Company’s investments in real estate-related securities as of December 31, 2022 and 2021 ($ in thousands): December 31, 2022 Type of Security Number of Positions Weighted Average Coupon (1) Weighted Average Maturity Date (2) Face Amount Cost Basis Fair Value CMBS - floating 33 L+3.64% November 2025 $ 177,192 $ 169,014 $ 168,765 CMBS - fixed 10 4.54% June 2024 74,771 69,705 69,555 RMBS - floating 8 L+2.46% November 2024 19,325 19,048 19,175 RMBS - fixed 24 4.69% February 2026 42,989 41,658 40,414 Corporate bonds 1 4.75% March 2029 2,500 2,075 1,985 Total 76 6.63% July 2025 $ 316,777 $ 301,500 $ 299,894 December 31, 2021 Type of Security Number of Positions Weighted Average Coupon (1) Weighted Average Maturity Date (2) Face Amount Cost Basis Fair Value CMBS - floating 4 L+4.00% February 2030 $ 19,760 $ 17,790 $ 19,511 Total 4 L+4.00% February 2030 $ 19,760 $ 17,790 $ 19,511 (1) The term “L” refers to the relevant floating benchmark rates, which include USD LIBOR and Secured Overnight Financing Rate (“SOFR”), as applicable to each security and loan. As of December 31, 2022 and 2021, one-month LIBOR was equal to 4.39% and 0.10%, respectively. As of December 31, 2022 and 2021, SOFR was equal to 4.30% and 0.05%, respectively. (2) Weighted average maturity date is based on the fully extended maturity date of the instruments. During the year ended December 31, 2022, the Company recorded net unrealized losses and net realized gains on its investments in real estate-related securities of $3.2 million and $0.6 million, respectively. During the year ended December 31, 2021, the Company recorded net unrealized gains and net realized gains on its investments in real estate-related securities of $1.7 million and $2.0 million, respectively. During the year ended December 31, 2020, the Company recorded net unrealized gains and net realized gains on its investments in real estate-related securities of $3.0 million and $0.1 million, respectively. Such amounts are recorded as components of Other income (expense) on the Company’s Consolidated Statements of Operations. |
Accounts and Other Receivables
Accounts and Other Receivables and Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Accounts and Other Receivables and Other Assets | Accounts and Other Receivables and Other Assets The following table summarizes the components of accounts and other receivables and other assets as of December 31, 2022 and 2021 ($ in thousands): Accounts and other receivables, net December 31, 2022 December 31, 2021 Straight-line rent receivables $ 4,132 $ 2,253 Accounts receivable 3,285 1,258 Interest receivable 1,243 294 Allowance for doubtful accounts (278) (49) Total accounts and other receivables, net $ 8,382 $ 3,756 Other assets December 31, 2022 December 31, 2021 Trading securities $ 15,918 $ — Derivative instruments 4,349 1,514 Prepaid expenses 2,344 2,182 Other 457 501 Acquisition Deposits 120 6,321 Total other assets $ 23,188 $ 10,518 |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Accounts Payable, Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Expenses and Other Liabilities The following table summarizes the components of accounts payable, accrued expenses and other liabilities as of December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Stock repurchases payable $ 12,586 $ 1,594 Accounts payable and accrued expenses 10,901 6,616 Distribution payable 5,250 2,823 Real estate taxes payable 3,508 2,350 Accrued interest expense 3,217 509 Tenant security deposits 2,895 1,286 Prepaid rent 1,234 1,045 Total accounts payable, accrued expenses and other liabilities $ 39,591 $ 16,223 |
Mortgage Loans, Secured Term Lo
Mortgage Loans, Secured Term Loan and Secured Credit Facility | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Mortgage Loans, Secured Term Loan and Secured Credit Facility | Mortgage Loans, Secured Term Loan and Secured Credit Facility The following table summarizes the components of mortgage loans and indebtedness as of December 31, 2022 and 2021 ($ in thousands): Maturity Date (2) Principal Balance Outstanding Indebtedness Interest Rate (1) December 31, 2022 December 31, 2021 Anzio Apartments mortgage loan L+1.59% May 2029 $ 44,400 $ 44,400 Two Liberty Center mortgage loan L+1.50% August 2024 62,085 62,085 Lakes at West Covina mortgage loan L+1.55% February 2025 25,604 25,604 Arbors of Las Colinas mortgage loan SOFR+2.24% January 2031 45,950 45,950 1110 Key Federal Hill mortgage loan 2.34% October 2028 51,520 51,520 Domain mortgage loan SOFR+1.50% December 2026 48,700 48,700 DreamWorks Animation Studios mortgage loan 3.20% March 2029 212,200 214,750 Briggs & Union mortgage loan SOFR+1.75% December 2027 80,000 — Secured Multifamily Term Loan SOFR+1.70% March 2027 372,760 — Secured Credit Facility (3)(4) SOFR+2.00% January 2025 118,985 244,402 Affiliate Line of Credit (5) SOFR+2.25% November 2023 — 105,000 Total indebtedness 1,062,204 842,411 Less: deferred financing costs, net (7,907) (3,618) Total indebtedness, net $ 1,054,297 $ 838,793 (1) The term “L” refers to the one-month US dollar-denominated LIBOR. As of December 31, 2022 and 2021, one-month LIBOR was equal to 4.39% and 0.10%, respectively. The term “SOFR” refers to the Secured Overnight Financing Rate. As of December 31, 2022 and 2021, SOFR was 4.30% and 0.05%, respectively. (2) Includes the fully extended maturity date for loans with extension options that are at the Company’s discretion and the Company currently expects to be able to exercise. (3) The Company assumed debt totaling $132.6 million in connection with the acquisition of Domain and The Burnham. The debt was refinanced in November 2021 with a $48.7 million mortgage loan secured by Domain and a $83.9 million borrowing on the Secured Credit Facility secured by The Burnham. (4) As of December 31, 2022, borrowings on the Secured Credit Facility were secured by the following properties: 6123-6227 Monroe Court, 2003 Beaver Road, 187 Bartram Parkway, and certain properties in the Single Family Rental Portfolio. In November 2022, the Company repaid an aggregate $36.4 million of the principal balance outstanding related to borrowings secured by 8400 Westphalia Road and McLane Distribution Center. In December 2022, the Company repaid $103.6 million of the principal balance outstanding related to borrowing secured by Briggs & Union. As of December 31, 2021, borrowings on the Secured Credit Facility were secured by the following properties: The Burnham, Flats on Front, Verso Apartments, 8400 Westphalia Road, 6123-6227 Monroe Court, and McLane Distribution Center. (5) Borrowings under the Affiliate Line of Credit bear interest at a rate of the lowest then-current interest rate for any similar credit product offered by a third-party lender to the Company or its subsidiaries or, if not available, SOFR plus a 0.10% credit adjustment and a 2.25% margin. The following table presents the future principal payments due under the Company’s mortgage loans and other indebtedness as of December 31, 2022 ($ in thousands): Year Amount 2023 $ — 2024 62,405 2025 145,242 2026 50,075 2027 454,258 Thereafter 350,224 Total $ 1,062,204 Mortgage Loans During the years ended December 31, 2022 and 2021, the Company obtained financing of $1.1 billion and $315.0 million, respectively, in mortgage loans related to its properties, which were subject to customary terms and conditions. During the years ended December 31, 2022 and 2021, the Company repaid $730.6 million and $53.0 million, respectively, of mortgage loans. Secured Multifamily Term Loan In March 2022, the Company entered into a term loan (the “Secured Multifamily Term Loan”) providing for a senior secured loan with an aggregate principal amount of $372.8 million. Borrowings on the Secured Multifamily Term Loan are secured by The Burnham, Flats on Front, Verso Apartments, 2626 South Side Flats and The Parker. Borrowings under the Secured Multifamily Term Loan bear interest at a rate of SOFR plus 1.70%. The Secured Multifamily Term Loan matures in March 2025, and has two one-year extension options, subject to certain conditions. Secured Credit Facility In November 2021, the Company entered into a credit agreement with a lender (the “Secured Credit Facility”) providing for a senior secured credit facility to be used for the acquisition or refinancing of properties. Borrowings on the Secured Credit Facility are secured by certain properties owned by the Company. The initial maximum aggregate principal amount of the facility was $250.0 million, which was increased to $500.0 million in March 2022. In May 2022, the interest rate benchmark was converted from LIBOR to SOFR plus 1.95%. The Secured Credit Facility had an initial maturity date in November 2022, which was extended to January 2023. In December 2022, the Company refinanced the Secured Credit Facility with the lender. The maximum aggregate principal amount of the facility was amended to $300.0 million, inclusive of a $100.0 million revolving credit amount which the Company may repay and re-borrow upon request, subject to certain conditions. The Company may increase the available capacity on the Secured Credit Facility by an additional $1.2 billion, subject to lender approval. The Secured Credit Facility bears interest at a rate of SOFR plus 2.00% and has a maturity date of January 2025. As of December 31, 2022 and 2021, there were $119.0 million and $244.4 million, respectively, of outstanding borrowings on the Secured Credit Facility. Affiliate Line of Credit |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Advisory Agreement Pursuant to the Advisory Agreement, the Adviser is entitled to an annual management fee equal to 1.25% of the Company’s NAV on its Class C, Class D, Class I, Class S and Class T shares of common stock (no management fee is paid on the Class E shares), payable monthly, as compensation for the services it provides to the Company. Prior to the Adviser Transition, the Oaktree Adviser was entitled to an annual management fee equal to 1.00% of the Company’s NAV, payable monthly, as compensation for the services it provides to the Company. The Oaktree Advisor agreed to waive the management fee through May 2020. The management fee can be paid, at the Adviser’s election, in cash or shares of the Company’s common stock. To date, the Adviser, and previously the Oaktree Adviser, has elected to receive the management fee in Class I and Class E shares of the Company’s common stock. During the years ended December 31, 2022, 2021 and 2020, the Company incurred $10.5 million, $2.7 million, and $1.2 million, respectively, of management fees. During the year ended December 31, 2022, the Company issued 502,895 unregistered Class I shares of common stock and 172,098 unregistered Class E shares of common stock to the Adviser for the payment of 2022 management fees. During the years ended December 31, 2021 and 2020, the Company issued 216,792 and 78,022 unregistered Class I shares of common stock to the Oaktree Adviser for payment of 2021 and 2020 management fees, respectively. The Company had accrued payables of $1.2 million and $0.6 million related to management fees as of December 31, 2022 and 2021, respectively, which are included in Due to affiliates on the Company’s Consolidated Balance Sheets. During January 2023, the Company issued 90,871 unregistered Class I shares of common stock to the Adviser as payment of the $1.2 million management fees accrued as of December 31, 2022. During February 2022, the Company issued 49,309 unregistered Class E shares of common stock to the Adviser as payment of the $0.6 million management fees accrued as of December 31, 2021. During the year ended December 31, 2022, the Company repurchased 326,488 Class I shares of common stock and 224,798 Class E shares of common stock from the Adviser for a total repurchase amount of $7.8 million. During the year ended December 31, 2021, the Company repurchased 294,710 Class I shares of common stock from the Oaktree Adviser for a total repurchase amount of $3.4 million. The Adviser, and prior to the Adviser Transition the Oaktree Adviser, is entitled to a performance fee based on the total return of the Company’s Class C, Class D, Class I, Class S and Class T shares of common stock (no performance fee is paid on the Class E shares). Total return is defined as distributions paid or accrued plus the change in the Company’s NAV, adjusted for subscriptions and repurchases. Pursuant to the Advisory Agreement, the performance fee is equal to 12.5% of the total return in excess of a 5% total return (after recouping any loss carryforward amount), subject to a catch-up. The performance fee becomes payable at the end of each calendar year and can be paid, at the Adviser’s election, in cash, shares of the Company’s common stock, or units of the Operating Partnership. During the years ended December 31, 2022, 2021 and 2020, the Company recognized $6.6 million, $5.1 million, and $2.2 million, respectively, of performance fees. The performance fee for 2022 became payable on December 31, 2022, and in January 2023 the Company issued 481,598 shares of Class I common stock to the Adviser as payment of the 2022 performance fee. The performance fee for 2021 earned by the Oaktree Advisor became payable on the date of the Adviser Transition, and in December 2021 the Company issued 429,340 Class I shares of common stock to the Oaktree Adviser as payment of the 2021 performance fee earned by the Oaktree Adviser through the date of the Adviser Transition. The performance fee for 2020 earned by the Oaktree Adviser became payable on December 31, 2020, and was paid in cash in April 2021. In December 2021, the Company repurchased 429,340 shares of Class I common stock from the Oaktree Adviser for a total repurchase amount of $5.1 million. For the period November 3, 2021 through December 31, 2021, the Special Limited Partner, an affiliate of Brookfield, received a performance participation allocation from the Operating Partnership based on the total return of the Operating Partnership. Total return is defined as distributions paid or accrued plus the change in the Company’s NAV, adjusted for subscriptions and repurchases. Under the Operating Partnership agreement, the annual total return was allocated 100% to the Special Limited Partner only after the other unit holders received a total return of 5% (after recouping any loss carryforward amount) and such allocation continued until the allocation between the Special Limited Partner and all other Operating Partnership unit holders was equal to 12.5% and 87.5%, respectively. The annual distribution of the performance participation interest was to be paid in Operating Partnership units or cash, at the election of the Special Limited Partner. During the year ended December 31, 2021, the Company recognized $2.3 million of performance participation allocation expense in the Company’s Consolidated Statements of Operations for the period November 3, 2021 through December 31, 2021. Effective January 1, 2022, the Company amended the Advisory Agreement and the Operating Partnership agreement to provide for the payment of a performance fee to the Advisor and eliminate the performance participation allocation. The performance participation allocation for the period November 3, 2021 through December 31, 2021 became payable on December 31, 2021, and in March 2022 the Company caused the Operating Partnership to issue 186,362 Class E units in the Operating Partnership (“Class E OP Units”) to the Special Limited Partner as payment of the 2021 performance participation allocation. In June 2022, all such Class E OP Units were converted to 191,670 unregistered Class I shares of common stock at the then-applicable conversion factor per unit based on the most recently determined NAV of Class E OP Units and Class I shares of common stock. Sub-Adviser Agreements The Adviser has engaged the Sub-Adviser to (i) perform the functions related to selecting and managing the Company’s liquid assets, including real estate-related debt securities, (the “Liquidity Sleeve”) pursuant to a sub-advisory agreement (the “Liquidity Sleeve Sub-Advisory Agreement”) and (ii) manage the Oaktree Option Investments pursuant to a separate sub-advisory agreement (the “Oaktree Assets Sub-Advisory Agreement” and together with the Liquidity Sleeve Sub-Advisory Agreement, the “Sub-Advisory Agreements”). Pursuant to the Liquidity Sleeve Sub-Advisory Agreement, the Sub-Adviser provides services related to the acquisition, management and disposition of the Liquidity Sleeve in accordance with the Company’s investment objectives, strategy, guidelines, policies and limitations. Pursuant to the Oaktree Assets Sub-Advisory Agreement, the Sub-Adviser manages the Oaktree Option Investments. The fees paid to the Sub-Adviser pursuant to the Sub-Advisory Agreements will not be paid by the Company, but will instead be paid by the Adviser out of the management and performance fees that the Company pays to the Adviser. The Sub-Adviser earns management and performance fees pursuant to the terms of the Sub-Adviser Agreement. These fees are paid by the Adviser out of the management and performance fees by the Advisor; therefore no management or performance fees related to the Sub-Advisory Agreements have been recognized in the accompanying Consolidated Statements of Operations. Dealer Manager Agreement The Company has engaged the Dealer Manager, a registered broker dealer affiliated with the Adviser, as the dealer manager for the Current Offering. The Company pays to the Dealer Manager selling commissions, dealer manager fees and stockholder servicing fees in connection with sales of the Company’s common stock in the Current Offering. The Company accrues the full amount of the future stockholder servicing fees payable to the Dealer Manager for Class S, Class T, and Class D shares up to the 8.75% of gross proceeds limit at the time such shares are sold. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Offering, which provide, among other things, for the re-allowance of the full amount of the selling commissions and dealer manager fees and all or a portion of the stockholder servicing fees received by the Dealer Manager to such selected dealers. Acquisition of Investments On November 2, 2021, the Company acquired two multifamily properties and a 20% interest in a joint venture that owns a net lease property (the “Brookfield Portfolio”) from an affiliate of Brookfield. The aggregate consideration was $173.2 million, which was equal to the fair value of the net assets of the Brookfield Portfolio based on third-party appraisals of the properties. The Company issued 2,088,833 shares of Class E common stock and 12,380,554 Class E OP Units as consideration for the acquisitions. In June 2022, 12,310,303 of such Class E OP Units were converted to 12,660,957 Class I shares of the Company’s common stock at the then-applicable conversion factor per unit based on the most recently determined NAV of Class E OP Units and Class I shares. Disposition of Investments On November 2, 2021, the Company sold its interest in a multifamily property, Ezlyn, to an affiliate of the Oaktree Adviser for $105 million. The sale price was equal to the most recently appraised value from a third-party appraiser obtained by the Company in connection with determining the Company’s NAV. The Company received net proceeds of $42.4 million, which consisted of $8.6 million of cash and a $33.8 million preferred equity interest in an affiliate of Oaktree. On December 31, 2021, the Company assigned $5.0 million of its preferred equity interest to the affiliate of the Oaktree Adviser for $5.0 million of cash. On January 18, 2022, the Company assigned its remaining $28.8 million preferred equity interest to the affiliate of the Oaktree Adviser for $28.8 million. On November 26, 2021, the Company sold a real estate-related loan, Atlantis Mezzanine Loan, to an affiliate of Brookfield for $25.0 million. The sale price was equal to the most recently appraised value from a third-party appraiser obtained by the Company in connection with determining the Company’s NAV. Advanced Organization and Offering Costs The Adviser, and previously the Oaktree Adviser, has agreed to advance all of the Company’s organization and offering expenses on its behalf (other than upfront selling commissions, dealer manager fees and stockholder servicing fees) through July 5, 2023, subject to the following reimbursement terms: (1) the Company reimburses the Adviser for all such advanced expenses paid through July 5, 2022 ratably over the 60 months following July 6, 2022; and (2) the Company will reimburse the Adviser for all such advanced expenses paid from July 6, 2022 through July 5, 2023 ratably over the 60 months following July 6, 2023. As part of the Adviser Transition, the Adviser acquired the Sub-Adviser’s receivable related to the organization and offering expenses previously incurred by the Sub-Adviser, which the Company reimburses to the Adviser ratably over the 60 months following July 6, 2022. Affiliate Line of Credit In November 2021, the Company entered into the Affiliate Line of Credit, providing for a discretionary, unsecured, uncommitted credit facility in a maximum aggregate principal amount of $125.0 million. For further details on the Affiliate Line of Credit, see Note 9 to the Company’s Consolidated Financial Statements. Oaktree Line of Credit On June 5, 2020, the Company entered into a line of credit (the “Oaktree Credit Agreement”) with an affiliate of Oaktree providing for a discretionary, unsecured, uncommitted credit facility in a maximum aggregate principal amount of $125.0 million. Borrowings under the Oaktree Credit Agreement incurred interest at a rate of the then-current rate offered by a third-party lender, or, if no such rate was available, LIBOR plus 2.25%. The Oaktree Credit Agreement was terminated on November 2, 2021, the date of the Adviser Transition. Brookfield Repurchase Arrangement One or more affiliates of Brookfield (individually or collectively, as the context may require, the “Brookfield Investor”) was issued shares of the Company’s common stock and Class E OP Units in connection with its contribution of the Brookfield Portfolio on November 2, 2021. The Company and the Operating Partnership have entered into a repurchase arrangement with the Brookfield Investor (the “Brookfield Repurchase Arrangement”) pursuant to which the Company and the Operating Partnership will offer to repurchase shares of common stock or Operating Partnership units from the Brookfield Investor at a price per unit equal to the most recently determined NAV per share or unit immediately prior to each repurchase. The Brookfield Investor has agreed to not seek repurchase of the shares of common stock and Operating Partnership units that it owns if doing so would bring the value of its equity holdings in the Company and the Operating Partnership below $50.0 million. In addition, the Brookfield Investor has agreed to hold all of the shares of common stock and Operating Partnership units that it received in consideration for the contribution of the Brookfield Portfolio until the earlier of (i) the first date that the Company’s NAV reaches $1.5 billion and (ii) the date that is the third anniversary of November 2, 2021. Following such date, the Brookfield Investor may cause the Company to repurchase its shares and Operating Partnership units (above the $50.0 million minimum), in an amount equal to the sum of (a) the amount available under the Company’s share repurchase plan’s 2% monthly and 5% quarterly caps (after accounting for third-party investor repurchases) and (b) 25% of the amount by which net proceeds from the Offering and the Company’s private offerings of common stock for a given month exceed the amount of repurchases for such month pursuant to the Company’s share repurchase plan. The Company will not effect any such repurchase during any month in which the full amount of all shares requested to be repurchased by third-party investors under the share repurchase plan is not repurchased. During the years ended December 31, 2022 and 2021, the Company and the Operating Partnership did not repurchase any shares or Operating Partnership units from the Brookfield Investor as part of the Brookfield Repurchase Arrangement. Oaktree Repurchase Agreement On September 11, 2019, the board of directors of the Company, including a majority of the independent directors, adopted an arrangement with the Oaktree Investor (the “Oaktree Repurchase Agreement”) to repurchase any shares of the Company’s Class I common stock that Oaktree Investor, an affiliate of the Oaktree Adviser, acquired prior to the breaking of escrow in the Initial Public Offering. The board of directors approved the Oaktree Repurchase Agreement in recognition of the Oaktree Investor’s intent to subscribe for shares of the Company’s Class I common stock in an amount such that, together with all other subscriptions for the Company’s common stock, the escrow minimum offering amount would be satisfied. As of December 6, 2019, the Company satisfied the minimum offering requirement and the Company’s board of directors authorized the release of proceeds from escrow. As of such date, the escrow agent released gross proceeds of approximately $150.0 million (including approximately $86.9 million that was funded by the Oaktree Investor) to the Company in connection with the sale of shares of the Company’s common stock. Under the Oaktree Repurchase Agreement, subject to certain limitations, on the last calendar day of each month the Company will offer to repurchase shares of its common stock from the Oaktree Investor in an aggregate dollar amount (the “Monthly Repurchase Amount”) equal to (i) the net proceeds from new subscriptions that month less (ii) the aggregate repurchase price (excluding any amount of the aggregate repurchase price paid using cash flow from operations not used to pay distributions) of shares repurchased by the Company that month from investors pursuant to the Company’s existing share repurchase plan. In addition to the Monthly Repurchase Amount for the applicable month, the Company will offer to repurchase any Monthly Repurchase Amounts from prior months that have not yet been repurchased. The price per share for each repurchase from the Oaktree Investor will be the lesser of (a) the $10.00 per share initial cost of the shares and (b) the transaction price in effect for the Class I shares at the time of repurchase. The repurchase arrangement is not subject to any time limit and will continue until the Company has repurchased all of the Oaktree Investor’s shares. During the years ended December 31, 2021 and 2020, the Company repurchased 6,186,397 shares for $61.9 million and 2,521,620 shares for $25.2 million from the Oaktree Investor. On July 31, 2021, the Company repurchased the remaining shares subject to the Oaktree Repurchase Agreement and there are no shares outstanding subject to the Oaktree Repurchase Agreement. Option Investments Purchase Agreement The Company entered into an Option Investments Purchase Agreement with Oaktree on November 2, 2021, pursuant to which Oaktree will have the right to purchase the Operating Partnership’s entire interest in four properties (Anzio Apartments, Arbors of Las Colinas, Two Liberty Center, and Lakes at West Covina), four real estate-related loan investments (IMC/AMC Bond Investment, 111 Montgomery, The Avery Senior Loan, The Avery Mezzanine Loan), and one real estate-related security investment (BX 2019 IMC G). Oaktree will have the right to purchase these investments for a period of 12 months following the earlier of (i) 18 months after November 2, 2021, the date of completion of the Adviser Transition, and (ii) the date on which the Company notifies Oaktree that it has issued in the aggregate $1.0 billion of the Company’s common stock to non-affiliates since November 2, 2021, at a price equal to the fair value of the applicable Option Investments, as determined in connection with the Company’s most recently determined NAV immediately prior to the closing of such purchase. As of December 31, 2022, the conditions to commence the option period have not occurred. Brookfield Subscription Agreement On November 30, 2021, the Operating Partnership and the Brookfield Investor entered into a subscription agreement (the “Brookfield Subscription Agreement”) pursuant to which the Brookfield Investor agreed to purchase up to $83.0 million of Class E OP Units upon the request of the general partner of the Operating Partnership, of which the Company is the sole member. On December 1, 2021, the Brookfield Investor was issued 3,756,480 Class E OP Units in exchange for $45.0 million. On January 3, 2022, the Brookfield Investor was issued 3,075,006 Class E OP Units in exchange for $38.0 million. On June 29, 2022, the Company, the Operating Partnership and the Brookfield Investor entered into an agreement pursuant to which all such Class E OP Units issued to the Brookfield Investor in connection with the Brookfield Subscription Agreement were converted to Class I shares of the Company’s common stock at the then-applicable conversion factor per unit based on the most recently determined NAV of Class E OP Units and Class I shares. The Class I shares held by the Brookfield Investor in connection with the Brookfield Subscription Agreement are not subject to the Brookfield Repurchase Arrangement, but the Brookfield Investor may request the Company repurchase its shares, in whole or in part, subject to the terms and conditions of the Company’s share repurchase plan. Affiliate Service Provider Expenses The Company may retain certain of the Adviser’s affiliates for necessary services relating to the Company’s investments or its operations, including any administrative services, construction, special servicing, leasing, development, property oversight and other property management services, as well as services related to group purchasing, healthcare, consulting/brokerage, capital markets/credit origination, loan servicing, property, title and/or other types of insurance, management consulting and other similar operational matters. The Company has engaged Brookfield Properties, an affiliate of Brookfield, to provide operational services (including, without limitation, property management, leasing, and construction management) and corporate support services (including, without limitation, accounting and administrative services) for the Company and certain of its properties. The Company has also engaged Conrex, an affiliate of Brookfield, to provide operational services (including, without limitation, property management, renovation, leasing, and turnover and maintenance oversight) for the Company’s single-family rental properties. The Company also reimburses Brookfield Properties, Conrex and other Brookfield operating affiliates for operating personnel expenses, including, but not limited to, employees who provide on-site maintenance, leasing, administrative and operational support services. Such employees may be fully dedicated or a shared resource amongst other investments. Employees’ compensation and expenses continue to be an expense of the affiliate, and if they are a shared resource, the affiliate allocates such expense to the Company according to their policies and procedures. Personnel expenses may include IT costs, HR support (i.e. payroll and benefits), rent and office services, basic financial services (i.e. account receivables, bank account administration), professional development, travel, professional fees and similar expenses. There were no services provided by Brookfield Properties, Conrex or other Brookfield operating affiliates for the year ended December 31, 2020. The following table summarizes the Company’s affiliate service provider expenses for the years ended December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Property management fees (1) $ 2,203 $ 153 Single-family rental leasing, maintenance and turnover oversight fees (1) 446 — Capitalized construction management fees (2) 139 — Capitalized single-family rental renovation oversight fees (2) 402 — Reimbursed personnel costs (3) 5,363 475 Total $ 8,553 $ 628 (1) Included in Rental property operating expenses on the Company's Consolidated Statements of Operations. (2) Included in Investments in real estate, net on the Company's Consolidated Balance Sheets. (3) $4.8 million included in Rental property operating expenses and $0.5 million included in General and administrative expenses on the Company's Consolidated Statements of Operations. A Brookfield affiliate in Luxembourg provides company secretarial, accounting and administrative services to the Company’s unconsolidated non-U.S. investment. For the years ended December 31, 2022 and 2021, the Company incurred $10,612 and $0, respectively, for these services at its ownership share. Captive Insurance Company BPG Bermuda Insurance Limited (“BAM Insurance Captive”), an affiliate of Brookfield, provides multifamily property and liability insurance for certain of the Company’s multifamily properties. For the years ended December 31, 2022 and 2021, the Company paid BAM Insurance Captive $0.3 million and $0.0 million, respectively, for insurance premiums. There were no premiums paid to BAM Insurance Captive for the year ended December 31, 2020. Affiliate Title Service Provider Horizon Land Services (“Horizon”), an affiliate of Brookfield, provides title insurance for certain of the Company’s properties. Horizon 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. For the years ended December 31, 2022 and 2021, the Company paid Horizon $0.4 million and $0.1 million, respectively, for title services. There were no services provided by Horizon to the Company for the year ended December 31, 2020. Due to Affiliates The following table details the components of due to affiliates ($ in thousands): December 31, 2022 December 31, 2021 Accrued stockholder servicing fee $ 29,477 $ 14,219 Advanced organization and offering costs 12,002 12,022 Accrued performance fee 6,566 — Other (1) 2,118 — Accrued management fee 1,239 621 Accrued affiliate service provider expenses 887 — OP Units Distributions Payable 5 — Stock repurchase payable to Oaktree Adviser for management and performance fees — 6,682 Accrued performance participation allocation — 2,346 Total $ 52,294 $ 35,890 (1) Represents costs advanced by the Adviser and the Sub-Adviser on behalf of the Company for general corporate expenses provided by unaffiliated third parties. |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholder's Equity | Stockholders’ Equity and Redeemable Non-controlling Interests Authorized Capital On April 30, 2018, the SEC declared effective the Company’s registration statement on Form S-11 for the Initial Public Offering. On November 2, 2021, the SEC declared effective the Company’s registration statement on Form S-11 (File No. 333-255557) for the Current Offering of up to $6.0 billion in shares in its primary offering and up to $1.5 billion in shares pursuant to its distribution reinvestment plan. The Initial Public Offering terminated upon the commencement of the Current Offering. Pursuant to the Current Offering, the Company is offering to sell any combination of four classes of shares of its common stock, Class T shares, Class S shares, Class D shares and Class I shares, with a dollar value up to the maximum offering amount. The share classes have different upfront selling commissions, dealer manager fees and ongoing stockholder servicing fees. The Company is also offering Class I, Class C and Class E shares in private offerings exempt from registration. Other than the differences in upfront selling commissions, dealer manager fees, ongoing stockholder servicing fees, management fees and performance fees, each class of common stock has the same economic and voting rights. Classification No. of Authorized Shares (in thousands) Par Value Preferred stock 50,000 $ 0.01 Class T common stock 225,000 $ 0.01 Class S common stock 225,000 $ 0.01 Class D common stock 100,000 $ 0.01 Class C common stock 100,000 $ 0.00 Class E common stock 100,000 $ 0.00 Class I common stock 250,000 $ 0.01 1,050,000 Common Stock The following table details the movement in the Company’s outstanding shares of common stock (in thousands): Class S Class I Class D Class T (1) Class C Class E Total December 31, 2019 5,852 9,146 — — — — 14,997 Common stock issued 7,041 838 — — — — 7,879 Distribution reinvestment 206 10 — — — — 216 Common stock repurchased (66) (2,522) — — — — (2,588) Independent directors’ restricted stock vested (2) — 6 — — — — 6 December 31, 2020 13,033 7,478 — — — — 20,510 Common stock issued 7,146 2,225 — — 1,644 2,089 13,104 Distribution reinvestment 432 35 — — — 9 476 Common stock repurchased (565) (6,926) — — — — (7,491) Independent directors’ restricted stock vested (2) — 13 — — — — 13 December 31, 2021 20,046 2,825 — — 1,644 2,098 26,612 Common stock issued 17,686 41,459 36 — 7,974 1,186 68,341 Distribution reinvestment 793 769 — — — 151 1,713 Common stock repurchased (1,821) (2,656) — — (275) (225) (4,977) December 31, 2022 36,704 42,397 36 — 9,343 3,210 91,689 (1) As of December 31, 2022, no Class T shares of common stock had been issued. (2) The independent directors’ restricted stock grants represent an aggregate $0.3 million, $0.1 million and $0.1 million of the annual compensation paid to the independent directors for the years ended December 31, 2022, 2021 and 2020, respectively. Each grant is amortized over the one year service period of such grant. The restricted stock generally vests one year from the date of the grant. In November 2021, the restricted stock grants related to the independent directors’ annual compensation for the year ended December 31, 2021, vested upon the resignation of the independent directions in connection with the Adviser Transition. The restricted stock grants related to the independent directors’ annual compensation for the year ended December 31, 2022, will vest in March 2023. 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 fees, management fees and performance fees, which are deducted from the monthly distribution per share. Prior to January 2022, the management fees and performance fees were not deducted from the monthly distribution per share. The following table details the net distributions declared for each applicable class of common stock: Year Ended December 31, 2022 Class S Class I Class D (1) Class T (2) Class C Class E Aggregate gross distributions declared per share of common stock $ 0.8715 $ 0.8715 $ 0.5199 $ — $ 0.8715 $ 0.8715 Stockholder servicing fee per share of common stock (0.1100) — (0.0200) — — — Management fee per share of common stock (0.1681) (0.1689) (0.1005) — (0.1661) — Net distributions declared per share of common stock $ 0.5934 $ 0.7026 $ 0.3994 $ — $ 0.7054 $ 0.8715 (1) The Company issued its first Class D shares of common stock in June 2022, thus no distributions were declared for Class D prior to this date. (2) The Company did not have any Class T shares of common stock issued or outstanding, thus no distributions were declared for Class T during the year ended December 31, 2022. Year Ended December 31, 2021 Class S Class I Class D (1) Class T (1) Class C (2) Class E (3) Aggregate gross distributions declared per share of common stock $ 0.5389 $ 0.5389 $ — $ — $ 0.4549 $ 0.1063 Stockholder servicing fee per share of common stock (0.0926) — — — — — Net distributions declared per share of common stock $ 0.4463 $ 0.5389 $ — $ — $ 0.4549 $ 0.1063 (1) The Company did not have any Class D or Class T shares of common stock issued or outstanding, thus no distributions were declared for Class D or Class T during the year ended December 31, 2021. (2) The Company issued its first Class C shares of common stock in March 2021, thus no distributions were declared for Class C prior to this date. (3) The Company issued its first Class E shares of common stock in November 2021, thus no distributions were declared for Class E prior to this date. Year Ended December 31, 2020 Class S Class I Class D (1) Class T (1) Aggregate gross distributions declared per share of common stock $ 0.4323 $ 0.4323 $ — $ — Stockholder servicing fee per share of common stock (0.0874) — — — Net distributions declared per share of common stock $ 0.3449 $ 0.4323 $ — $ — (1) The Company did not have any Class D or Class T shares of common stock issued or outstanding, thus no distributions were declared for Class D or Class T during the year ended December 31, 2020. Distribution Reinvestment Plan The Company has adopted a distribution reinvestment plan whereby stockholders (other than Alabama, Idaho, Kansas, Kentucky, Maine, Maryland, Massachusetts, Nebraska, New Jersey, North Carolina, Ohio, Oregon, Vermont and Washington investors) will have their cash distributions automatically reinvested in additional shares of common stock unless they elect to receive their distributions in cash. Alabama, Idaho, Kansas, Kentucky, Maine, Maryland, Massachusetts, Nebraska, New Jersey, North Carolina, Ohio, Oregon, Vermont and Washington investors 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 offering price before upfront selling commissions and dealer manager fees (the “transaction price”) at the time the distribution is payable, which will generally be equal to the Company’s prior month’s NAV per share for that share class. Stockholders 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. During the years ended December 31, 2022 and 2021 the Company reinvested $23.4 million and $5.2 million of distributions for 1,713,257 and 215,561 shares of common stock, respectively. Non-controlling Interests Attributable to Preferred Shareholders Certain subsidiaries of the Company have elected to be treated as REITs for U.S. federal income tax purpose. These subsidiaries have issued preferred non-voting shares to be held by investors to ensure compliance with the Code requirement that REITs have at least 100 shareholders. The preferred shares have a price of $1,000 and carry a 12.5% annual dividend payable annually. As of December 31, 2022, there were $375,000 of preferred non-voting shares outstanding. Redeemable Non-controlling Interest The Brookfield Investor was issued Class E OP Units in connection with its contribution of the Brookfield Portfolio on November 2, 2021, subsequent cash contributions to the Operating Partnership pursuant to the Brookfield Subscription Agreement, and the settlement of prior year performance participation allocation. Due to the ability of the Brookfield Investor to redeem its Class E OP Units for shares of common stock or cash, subject to certain restrictions, the Company has classified the Class E OP Units held by the Brookfield Investor as Redeemable non-controlling interest in mezzanine equity on the Company’s Consolidated Balance Sheets. The Redeemable non-controlling interest is recorded at the greater of the carrying amount, adjusted for its share of the allocation of income or loss and dividends, or the redemption value, which is equivalent to fair value, of such units at the end of each measurement period. The following table summarizes the Redeemable non-controlling interest activity for the years ended December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Balance at beginning of the year $ 200,086 $ — Limited Partner Asset Contributions — 148,175 Limited Partner Cash Contributions 38,000 45,000 Settlement of prior year performance participation allocation 2,346 Conversion to Class I shares (284,785) GAAP Income Allocation (4,669) 2,578 Distributions (6,951) (1,521) Distributions Reinvested 7,819 649 Fair Value Allocation 49,144 5,205 Balance at the end of the year $ 990 $ 200,086 Share Repurchase Plan The Company has adopted a share repurchase plan, whereby, subjected to certain limitations, stockholders may request on a monthly basis that the Company repurchase all or any portion of their shares. Should repurchase requests, in the Company’s judgment, place an undue burden on its liquidity, adversely affect its operations or risk having an adverse impact on the Company as a whole, or should the Company otherwise determine that investing its liquid assets in real properties or other illiquid investments rather than repurchasing its shares is in the best interests of the Company as a whole, then the Company may choose to repurchase fewer shares than have been requested to be repurchased, or none at all. Further, the Company’s board of directors may modify and suspend the Company’s share repurchase plan if it deems such action to be in the Company’s best interest and the best interest of its stockholders. In addition, the total amount of shares that the Company will repurchase is limited, in any calendar month, to shares whose aggregate value (based on the repurchase price per share on the date of the repurchase) is no more than 2% of its aggregate NAV as of the last day of the previous calendar month and, in any calendar quarter, to shares whose aggregate value is no more than 5% of its aggregate NAV as of the last day of the previous calendar quarter. In the event that the Company determines to repurchase some but not all of the shares submitted for repurchase during any month, shares repurchased at the end of the month will be repurchased on a pro rata basis. All unsatisfied repurchase requests must be resubmitted after the start of the next month or quarter, or upon the recommencement of the share repurchase plan, as applicable. 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 98% of the transaction price. For the years ended December 31, 2022, 2021 and 2020, the Company repurchased 4,888,778, 7,491,201 and 2,587,264 shares of common stock representing a total of $70.3 million, $76.9 million and $25.9 million, respectively, inclusive of repurchases from the Oaktree Investor pursuant to the Oaktree Repurchase Agreement totaling 6,186,397 and 2,521,620 shares of common stock for $61.9 million and $25.2 million for the years ended December 31, 2021 and 2020, respectively. The Company satisfied all repurchase requests during the years ended December 31, 2022, 2021 and 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesFrom time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. As of December 31, 2022, the Company was not subject to any material litigation nor was the Company aware of any material litigation threatened against it. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company’s rental revenue primarily consists of rent earned from operating leases at the Company’s multifamily, office, logistics, net lease and single-family rental properties. Leases at the Company’s office, logistics, and net lease properties generally include a fixed base rent and certain leases also contain a variable component. The variable component of the Company’s operating leases at its office, logistics, and net lease properties primarily consist of the reimbursement of operating expenses such as real estate taxes, insurance, and common area maintenance costs. Rental revenue earned from leases at the Company’s multifamily and single-family rental properties primarily consist of a fixed base rent and certain leases contain a variable component that allows for the pass-through of certain operating expenses such as utilities. The following table details the components of operating lease income from leases in which the Company is the lessor for the period set forth below($ in thousands): Year Ended December 31, 2022 Fixed lease payments $ 102,890 Variable lease payments 5,762 Total rental revenues $ 108,652 The following table details the undiscounted future minimum rents the Company expects to receive for its logistics, net lease, and office properties as of December 31, 2022. The table below excludes the Company’s multifamily and single-family rental properties as substantially all leases are shorter term in nature ($ in thousands). Year Future Minimum Rents 2023 $ 32,308 2024 29,337 2025 28,211 2026 25,394 2027 23,102 Thereafter 143,114 Total $ 281,466 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting As of December 31, 2022, the Company operates in six reportable segments: multifamily, office, logistics, single-family rental, net lease and real estate-related loans and securities. The Company continually evaluates the financial information used by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. During the year ended December 31, 2022, the Company made the following changes to its reportable segments based on the information used by the CODM: (1) single-family rentals (previously a component of alternatives) was established as a separate reportable segment; and (2) net lease was established as a new reportable segment, consisting of DreamWorks Animation Studios (previously a component of alternatives) and the Company’s unconsolidated investment in Principal Place (previously a component of investments in unconsolidated entities). Net lease consists of properties that are leased to a single tenant in which the tenant is generally responsible for all property-related expenses, including taxes, insurance, and maintenance. Comparative periods have been recast to reflect these changes. 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, 2022 December 31, 2021 Multifamily $ 944,453 $ 583,308 Office 124,001 126,966 Logistics 112,019 74,039 Single-Family Rental 142,461 5,011 Net Lease 426,789 457,456 Real Estate-Related Loans and Securities 332,654 55,074 Other (Corporate) 68,096 72,859 Total assets $ 2,150,473 $ 1,374,713 The following table sets forth the financial results by segment for the year ended December 31, 2022 ($ in thousands): Multifamily Office Logistics Single-Family Rental Net Lease Real Estate-Related Loans and Securities Total Revenues: Rental revenues $ 65,302 $ 12,844 $ 6,632 $ 4,503 $ 19,371 $ — $ 108,652 Other revenues 8,684 658 — 274 — — 9,616 Total revenues 73,986 13,502 6,632 4,777 19,371 — 118,268 Expenses: Rental property operating 28,752 5,917 1,978 2,312 2,343 — 41,302 Total expenses 28,752 5,917 1,978 2,312 2,343 — 41,302 Income from real estate-related loans and securities — — — — — 11,322 11,322 Segment net operating income $ 45,234 $ 7,585 $ 4,654 $ 2,465 $ 17,028 $ 11,322 $ 88,288 Realized gain on real estate investments $ 726 Realized gain on financial instruments 10,572 Unrealized loss on investments (16,750) Depreciation and amortization 55,684 General and administrative expenses 9,562 Management fee 10,512 Performance fee 6,566 Interest expense 39,718 Net loss $ (39,206) Net loss attributable to non-controlling interests in third party joint ventures 148 Net income attributable to non-controlling interests - preferred stockholders (24) Net loss attributable to redeemable non-controlling interests 4,669 Net loss attributable to stockholders $ (34,413) The following table sets forth the financial results by segment for the year ended December 31, 2021 ($ in thousands): Multifamily Office Logistics Single-Family Rental Net Lease Real Estate-Related Loans and Securities Total Revenues: Rental revenues $ 21,180 $ 12,471 $ 419 $ — $ 717 $ — $ 34,787 Other revenues 1,983 608 — — — — 2,591 Total revenues 23,163 13,079 419 — 717 — 37,378 Expenses: Rental property operating 9,707 5,495 148 5 110 — 15,465 Total expenses 9,707 5,495 148 5 110 — 15,465 Income from real estate-related loans and securities — — — — — 5,442 5,442 Segment net operating income $ 13,456 $ 7,584 $ 271 $ (5) $ 607 $ 5,442 $ 27,355 Realized gain on real estate investments $ 21,493 Unrealized gain on investments 1,837 Depreciation and amortization 18,370 General and administrative expenses 7,057 Organizational costs 3,459 Management fee 2,651 Performance fee 5,143 Performance participation allocation 2,346 Interest expense 6,758 Net income $ 4,901 Net loss attributable to non-controlling interests in third party joint ventures 183 Net income attributable to redeemable non-controlling interests (2,578) Net income attributable to stockholders $ 2,506 The following table sets forth the financial results by segment for the year ended December 31, 2020 ($ in thousands): Multifamily Office Real Estate- Total Revenues: Rental revenues $ 11,682 $ 12,463 $ — $ 24,145 Other revenues 496 645 — 1,141 Total revenues 12,178 13,108 — 25,286 Expenses: Rental property operating 4,859 5,352 — 10,211 Total expenses 4,859 5,352 — 10,211 Income from real estate-related loans and securities — — 4,908 4,908 Segment net operating income $ 7,319 $ 7,756 $ 4,908 $ 19,983 Realized gain on investments $ 144 Unrealized gain on investments 2,417 Depreciation and amortization 13,481 General and administrative expenses 3,474 Management fee 1,171 Performance fee 2,215 Interest expense 4,948 Net loss $ (2,745) Net loss attributable to non-controlling interests in third party joint ventures 307 Net loss attributable to stockholders $ (2,438) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsInterest Rate Swap AgreementSubsequent to December 31, 2022, the Company entered into an interest rate swap agreement related to its Secured Multifamily Term Loan. The interest rate swap has a notional amount of $250.0 million and a SOFR strike rate of 2.65%. |
Schedule III_Real Estate and Ac
Schedule III—Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III—Real Estate and Accumulated Depreciation | Schedule III—Real Estate and Accumulated Depreciation as of December 31, 2022 (in thousands) Initial Cost Costs Capitalized Subsequent to Acquisition Gross Amounts at which Carried at the Close of Period Description Location Encumbrances Land and Land Improvements Building and Building Improvements Land and Land Improvements Building and Building Improvements Land and Land Improvements Building and Building Improvements Total Accumulated Depreciation Year Built Year Acquired Depreciable Lives (1) Multifamily properties: Anzio Apartments Atlanta, GA $ 44,400 $ 9,837 $ 47,058 $ 1,092 $ 68 $ 10,929 $ 47,126 $ 58,055 $ (8,160) 1986 2019 (1) Arbors of Las Colinas Dallas, TX 45,950 18,155 43,492 536 73 18,691 43,565 62,256 (3,545) 1984 2020 (1) 1110 Key Federal Hill Baltimore, MD 51,520 10,310 61,908 5 168 10,315 62,076 72,391 (2,135) 2019 2021 (1) Domain Orlando, FL 48,700 10,503 61,703 40 95 10,543 61,798 72,341 (2,011) 2017 2021 (1) The Burnham Nashville, TN (3) 114,000 14,145 111,469 33 218 14,178 111,687 125,865 (3,278) 2017 2021 (1) Flats on Front Wilmington, NC (3) 64,000 6,528 88,877 19 97 6,547 88,974 95,521 (2,382) 2021 2021 (1) Verso Apartments Beaverton, OR (3) 49,000 8,100 61,139 16 10 8,116 61,149 69,265 (1,628) 2021 2021 (1) 2626 South Side Flats Pittsburgh, PA (3) 60,760 11,064 77,270 4 136 11,068 77,406 88,474 (1,949) 2016 2022 (1) The Parker Alexandria, VA (3) 85,000 18,775 114,441 14 243 18,789 114,684 133,473 (2,425) 2016 2022 (1) Briggs & Union Mount Laurel, NJ 80,000 18,987 131,552 76 24 19,063 131,576 150,639 (2,658) 2020 2022 (1) Total Multifamily Properties $ 643,330 $ 126,404 $ 798,909 $ 1,835 $ 1,132 $ 128,239 $ 800,041 $ 928,280 $ (30,171) Logistics properties: 6123-6227 Monroe Ct Morton Grove, IL (2) $ 11,685 $ 5,625 $ 9,703 $ — $ 370 $ 5,625 $ 10,073 $ 15,698 $ (532) 1968 2021 (1) 8400 Westphalia Road Upper Marlboro, MD — 11,676 17,161 — — 11,676 17,161 28,837 (903) 2005 2021 (1) McLane Distribution Center Lakeland, FL — 3,217 22,039 — — 3,217 22,039 25,256 (1,038) 1973 2021 (1) 2003 Beaver Road Landover, MD (2) 6,295 1,591 7,708 — 36 1,591 7,744 9,335 (234) 1983 2022 (1) 187 Bartram Parkway Franklin, IN (2) 18,997 4,205 22,948 — — 4,205 22,948 27,153 (664) 2004 2022 (1) Total Logistics Properties $ 36,977 $ 26,314 $ 79,559 $ — $ 406 $ 26,314 $ 79,965 $ 106,279 $ (3,371) Office properties: Two Liberty Center Arlington, VA $ 62,085 $ 3,075 $ 83,132 $ — $ 392 $ 3,075 $ 83,524 $ 86,599 $ (8,874) 2007 2019 (1) Lakes at West Covina Los Angeles, CA 25,604 4,415 30,637 — 1,425 4,415 32,062 36,477 (5,302) 1990 2020 (1) Total Office Properties $ 87,689 $ 7,490 $ 113,769 $ — $ 1,817 $ 7,490 $ 115,586 $ 123,076 $ (14,176) Net Lease properties: DreamWorks Animation Studios Glendale, CA $ 212,200 $ 74,803 $ 247,835 $ — $ 187 $ 74,803 $ 248,022 $ 322,825 $ (8,039) 1997 2021 (1) Total Net Lease Properties $ 212,200 $ 74,803 $ 247,835 $ — $ 187 $ 74,803 $ 248,022 $ 322,825 $ (8,039) Single Family Rental Portfolio Various (2) $ 82,008 $ 24,210 $ 103,625 $ 431 $ 8,366 $ 24,641 $ 111,991 $ 136,632 $ (2,080) Various Various (1) Portfolio Total $ 1,062,204 $ 259,221 $ 1,343,697 $ 2,266 $ 11,908 $ 261,487 $ 1,355,605 $ 1,617,092 $ (57,837) (1) Refer to Note 2 of the Consolidated Financial Statements for details of depreciable lives. (2) These properties secure a $119.0 million balance on the Secured Credit Facility. (3) These properties secure a $372.8 million balance on the Secured Multifamily Term Loan. Schedule III—Real Estate and Accumulated Depreciation as of December 31, 2022 - Continued The total included on Schedule III does not include furniture, fixtures and equipment totaling $26.0 million . Accumulated depreciation does not include $4.3 million of accumulated depreciation related to furniture, fixtures and equipment. The following table summarizes activity for real estate and accumulated depreciation for the years ended December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Real Estate: Balance at the beginning of the year $ 1,075,445 $ 325,094 Additions during the year: Land and land improvements 84,073 145,607 Building and building improvements 458,249 684,636 Dispositions during the year: Land and land improvements — (12,503) Building and building improvements (675) (67,389) Balance at the end of the year $ 1,617,092 $ 1,075,445 Accumulated Depreciation: Balance at the beginning of the year $ (19,373) $ (11,590) Depreciation expense (39,050) (12,406) Dispositions 586 4,623 Balance at the end of the year $ (57,837) $ (19,373) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company, the Company's subsidiaries and joint ventures in which the Company has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. Certain comparative figures have been reclassified to conform to the current year presentation. The Company consolidates all entities in which it retains a controlling financial interest through majority ownership or voting rights and entities that meet the definition of a variable interest entity (“VIE”) for which it is deemed to be the primary beneficiary. The Company is the primary beneficiary of a VIE when it has (i) the power to direct the activities of a VIE that most significantly influence the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE, or the right to receive benefits from the VIE that potentially could be 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 as its sole general partner. The Company also consolidates all VIEs for which it is the primary beneficiary. 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. Equity method investments for which the Company has not elected a fair value option (“FVO”) are initially recorded at cost and subsequently adjusted for the Company’s pro-rata share of net income, contributions, and distributions. When the Company elects the FVO, the Company records its share of net asset value of the entity and any related unrealized gains and losses. The Operating Partnership and the Company’s joint ventures are considered to be VIEs. The Company consolidates these entities, excluding its equity method investments, because it has the ability to direct the most significant activities of the entities such as purchases, dispositions, financings, budgets, and overall operating plans. For consolidated joint ventures, the non-controlling partner’s share of the assets, liabilities, and operations of each joint venture is included in non-controlling interests as equity of the Company. The non-controlling joint venture partner’s interest is generally computed as the joint venture partner’s ownership percentage. Certain of the joint ventures formed by the Company provide the other partner a profits interest based on certain internal rate of return hurdles being achieved. Any profits interest due to the other partner is reported within non-controlling interest. |
Use of Estimates | Use of EstimatesThe preparation of the 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 and accrued expenses at the date of the balance sheet. The Company believes the estimates and assumptions underlying the consolidated financial statements are reasonable and supportable based on the information available as of December 31, 2022. |
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 does not constitute a business, the Company accounts for the transaction as an asset acquisition. The guidance for business combinations states that when substantially all of the fair value of the gross assets to be acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or set of assets is not a business. The Company evaluates each real estate acquisition to determine whether the integrated set of acquired assets and activities meets the definition of a business. Generally, acquisitions of real estate or in-substance real estate are not expected to meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings and related intangible assets) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. All property acquisitions to date have been accounted for as asset acquisitions because substantially all of the fair value was concentrated in the land, buildings and related intangible assets. The Company capitalizes acquisition-related costs associated with asset acquisitions. Upon acquisition of a property, the Company assesses the fair value of the acquired tangible and intangible assets (including land, buildings, tenant improvements, above- or below-market leases, acquired in-place leases, and other 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 estimated fair value of acquired in-place leases include the costs the Company would have incurred to lease the properties to their occupancy levels at the date of acquisition. Such estimates include the fair value of leasing commissions, legal costs and other direct costs that would be incurred to lease the properties to such occupancy levels. The Company evaluates avoided costs over the time period over which occupancy levels at the date of acquisition would be achieved had the property been acquired vacant. Such evaluation includes an estimate of the net market-based rental revenues and net operating costs (primarily consisting of real estate taxes, insurance and utilities) that would be incurred during the lease-up period. Acquired in-place leases are amortized over the remaining lease terms as a component of depreciation and amortization expense. For acquired in-place leases, above- and below-market lease values are recorded based on the present value (using an interest rate that reflects the risks associated with the lease acquired) of the difference between the contractual amounts to be paid pursuant to the in-place leases and management’s estimate of fair market value lease rates for the corresponding in-place leases. The values of acquired above- and below-market leases are amortized over the terms of the related leases and recognized as either increases (for below-market leases) or decreases (for above-market leases) to rental revenue. Should a tenant terminate its lease, the unamortized portion of the in-place lease value is charged to amortization expense and the unamortized portion of the above- or below-market lease value is charged to rental revenue. Significant improvements to properties are capitalized and depreciated over their estimated useful life. Expenditures for ordinary repairs and maintenance are expensed to operations as incurred 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 30-40 years Building and site improvements 5-21 years Furniture, fixtures and equipment 1-9 years Tenant improvements Shorter of estimated useful life or lease term In-place lease intangibles Over lease term Above and below market leases Over lease term Lease origination costs Over lease term Present value of tax abatement savings Over tax abatement period 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’s management reviews its real estate properties for impairment when there is an event or change in circumstances that indicates an impaired value. In reviewing the portfolio, the Company’s management examines the type of asset, the economic situation in the area in which the asset is located, the economic situation in the industry in which the tenant is involved and the timeliness of the payments made by the tenant under its lease, changes in holding period, as well as any current correspondence that may have been had with the tenant, including property inspection reports. For each real estate asset for which indicators of impairment are identified, the Company performs a recoverability analysis that compares future undiscounted cash flows expected to result from the Company’s use and eventual disposition of the asset to its carrying value. If the undiscounted cash flow analysis yields an amount which is less than the asset’s carrying amount, an impairment loss will be recorded equal to the amount by which the carrying value of the asset exceeds its estimated fair 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 directly 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. During the periods presented, no such impairment occurred. |
Assets Held for Sale | Assets Held for SaleThe Company classifies the assets and liabilities related to its real estate investments as held for sale when a sale is probable to occur within one year. The Company considers a sale to be probable when a binding contract has been executed, the buyer has posted a non-refundable deposit, and there are limited contingencies to closing. The Company classifies held for sale assets and liabilities at the lower of depreciated cost or fair value less closing costs. |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Investments in unconsolidated entities are initially recorded at cost and subsequently adjusted for the Company’s pro-rata share of net income, contributions, and distributions. The Company’s investments in unconsolidated entities are periodically assessed for impairment and an impairment loss would be recorded when the fair value of the investment falls below the carrying value and such decline is determined to be other-than-temporary. For further details on the Company’s investments in unconsolidated entities, see Note 4 to the Company’s Consolidated Financial Statements. |
Investments in Real Estate-Related Loans and Securities | Investments in Real Estate-Related Loans and Securities Real estate-related loans that the Company has the intent and ability to hold for the foreseeable future are classified as held for investment. Originated loans are recorded at amortized cost, or outstanding unpaid principal balance less net deferred loan fees. Net deferred loan fees include unamortized origination and other fees charged to the borrower less direct incremental loan origination costs incurred by the Company. Purchased loans are recorded at amortized cost, or unpaid principal balance plus purchase premium or less unamortized discount. Costs to purchase loans are expensed as incurred. Interest income related to the Company’s loans is recognized based upon contractual interest rate and unpaid principal balance of the loans as a component of Income from real estate-related loans and securities on the accompanying Consolidated Statements of Operations. Net deferred loan fees on originated loans are deferred and amortized as adjustments to interest income over the expected life of the loans using the effective yield method. Premium or discount on purchased loans are amortized as adjustments to interest income over the expected life of the loans using the effective yield method. When a loan is prepaid, prepayment fees and any excess of proceeds over the carrying amount of the loan are recognized as additional interest income. The Company assesses the collectibility of its real estate-related loans to estimate credit losses over the contractual term of each loan. The Company’s estimate of credit losses is based relevant factors, including historical realized loss rates, current market conditions, and reasonable and supportable forecasts that affect the collectibility of its investments. The Company also considers, among other things, payment status, lien position, borrower or tenant financial resources, and underlying collateral. The Company recognizes an allowance for credit loss when the carrying amount of a loan differs from the amount expected to be collected. For the year ended December 31, 2022, no allowance for expected credit loss has been recognized. The Company has elected to classify its real estate debt securities as trading securities and carry such investments at fair value. As such, the resulting unrealized gains and losses of such securities are recorded as a component of Unrealized (loss) gain on investments, net on the Company’s Consolidated Statements of Operations. Interest income from trading securities is recognized based on the stated terms of the security. Interest income from real estate-related debt securities is recorded as a component of Income from real estate-related loans and securities on the accompanying Consolidated Statements of Operations. |
Revenue Recognition | Revenue Recognition Rental revenue primarily consists of base rent arising from tenant leases at the Company’s properties. Base rent is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. The Company begins to recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased space. Other rental revenues include amounts due from tenants for costs related to common area maintenance, real estate taxes, and other recoverable costs included in lease agreements. The Company recognizes the reimbursement of such costs incurred as tenant reimbursement income. The Company evaluates the collectability of receivables related to rental revenue on an individual lease basis. In making this determination, the Company considers the length of time a receivable has been outstanding, tenant creditworthiness, payment history, available information about the financial condition of the tenant, and current economic trends, among other factors. Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue. |
Cash and Cash Equivalents & Restricted Cash | 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, which is held in a bank account controlled by the Company’s transfer agent but in the name of the Company. The remaining |
Trading Securities | Trading SecuritiesTrading securities consist of U.S. government securities that are available to support the Company’s current operations and liquidity. Trading securities have been classified as available-for-sale securities and are measured at fair value. As such, the resulting unrealized gains and losses of such securities are recorded as a component of Unrealized (loss) gain on investments, net on the Company’s Consolidated Statements of Operations. Interest income from trading securities is recognized based on the stated terms of the security and is recorded as a component of Income from real estate-related loans and securities on the accompanying Consolidated Statements of Operations. |
Foreign Currency | Foreign Currency In the normal course of business, the Company makes investments in real estate outside the United States (“U.S.”) through subsidiaries that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities of these foreign subsidiaries are translated to U.S. dollars at the prevailing exchange rate at the reporting date and income, expenses, gains, and losses are translated at the average exchange rate over the applicable period. Gains and losses from translation of foreign denominated transactions into U.S. dollars are included in current results of operations as a component of Unrealized (loss) gain on investments, net on the Company’s Consolidated Statements of Operations. |
Deferred Charges | Deferred ChargesThe 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 and term loans are recorded as an offset to the related liability and amortized over the term of the applicable financing instruments. Deferred financing costs related to the Company’s 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 agreements. Deferred leasing costs incurred in connection with new leases, which consist primarily of brokerage and legal fees, are recorded as a component of Other assets on the Company’s Consolidated Balance Sheets and amortized over the life of the related lease. |
Derivative Instruments | Derivative Instruments In the normal course of business, the Company is exposed to the effect of interest rate changes and, with regard to its non-U.S. investments, changes in foreign currency exchange rates. The Company seeks to manage these risks by following established risk management policies and procedures including the use of derivatives to hedge interest rate and currency rate risk. These financial instruments may include interest-rate swaps and other derivative contracts. The Company recognizes all derivatives as either assets or liabilities in the accompanying Consolidated Balance Sheets and measures those instruments at fair value. Changes in the fair values of the Company’s derivatives are recorded in current-period earnings as a component of Unrealized (loss) gain on investments, net on the accompanying Consolidated Statements of Operations. The Company recognized $3.4 million and |
Fair Value Measurement | Fair Value Measurement 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 hierarchical 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 marketplace, 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-related securities and trading securities are reported at fair value. The Company generally determines the fair value of its investments in real estate-related securities and trading 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 securities such as real estate debt generally consider the attributes applicable to a particular class of the 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. The inputs used in determining the Company’s real estate-related securities and trading securities reported at fair value are considered Level 2. The Company’s derivative financial instruments are reported at fair value. The fair value of the Company’s interest rate swap is determined 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 fair value of the Company’s interest rate cap is determined 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 fair value of the Company’s foreign currency swap is 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. The inputs used in determining the Company’s derivative financial instruments reported at fair value are considered Level 2. The Company has elected the FVO for its equity method investment and therefore, reports this investment at fair value. As such, the resulting unrealized gains and losses are recorded as a component of Unrealized (loss) gain on investments, net on the Company’s Consolidated Statements of Operations. The Company separately values the assets and liabilities of the equity method investment. To determine the fair value of the assets of the equity method investments, the Company utilizes a discounted cash flow methodology, taking into consideration various factors including discount rate and exit capitalization rate. The Company determines the fair value of the indebtedness of the equity method investment by modeling the cash flows required by the debt agreements and discounting them back to the present value using an estimated market yield. Additionally, the Company considers current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. After the fair value of the assets and liabilities are determined, the Company applies its ownership interest to the net asset value and reflects this amount as its equity method investment at fair value. The inputs used in determining the Company’s equity method investment carried at fair value are considered Level 3. The Company’s carrying values of cash and cash equivalents, restricted cash, accounts receivable and other receivables, accounts payable, accrued liabilities and other liabilities approximate fair value because of the short-term nature of these instruments. The following table details the Company’s assets measured at fair value on a recurring basis ($ in thousands): December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Investments in real estate-related securities $ — $ 299,894 $ — $ 299,894 $ — $ 19,511 $ — $ 19,511 Investment in unconsolidated entities — — 80,591 80,591 — — 100,840 100,840 Derivatives — 4,349 — 4,349 — 1,514 — 1,514 Total $ — $ 304,243 $ 80,591 $ 384,834 $ — $ 21,025 $ 100,840 $ 121,865 The following table details the Company’s assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Investment in unconsolidated entities Balance as of December 31, 2021 $ 100,840 Distributions of earnings from unconsolidated entities (3,256) Unrealized loss on investments, net (16,993) Balance as of December 31, 2022 $ 80,591 Valuation of Liabilities Not Measured at Fair Value The 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, 2022, the fair value of the Company’s mortgage loans and other indebtedness was approximately $27.8 million below the outstanding principal balance. |
Income Taxes | Income Taxes The Company believes that it qualifies to be taxed as a REIT for U.S. federal income tax purposes. The Company generally will not be subject to federal corporate income tax to the extent it distributes 90% of its taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. The Company has formed wholly-owned subsidiaries that are taxed as taxable REIT subsidiaries (“TRSs”) that are subject to taxation at the federal, state and local levels, as applicable. 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. The Company will account for applicable income taxes by utilizing the asset and liability method. As such, the Company will record 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 my not be realized. |
Organization and Offering Expense | Organization and Offering Expenses Organizational expenses are expensed as incurred on the Company’s Consolidated Statements of Operations, and offering costs are charged to equity as incurred on the Company’s Consolidated Statements of Changes in Stockholders’ Equity. The Adviser and its affiliates advanced $12.5 million of organization and offering expenses on the Company’s behalf through July 5, 2022, and the Company reimburses the Adviser for all such advanced expenses ratably over the 60 months following July 6, 2022. Additionally, the Adviser has agreed to advance organization and offering costs from July 6, 2022 through July 5, 2023, and the Company will reimburse the Adviser for all such advanced expenses ratably over the 60 months following July 6, 2023. As of December 31, 2022, the Adviser has advanced $0.7 million of organization and offering expenses on the Company’s behalf for expenses paid from July 6, 2022 through December 31, 2022. Any amount due to the Adviser but not paid is recorded as a component of Due to affiliates on the Company’s Consolidated Balance Sheets. |
Earnings Per Share | Earnings Per Share The Company uses the two-class method in calculating earnings per share ( “ EPS ” ) when it issues securities other than common stock that contractually entitle the holder to participate in dividends and earnings of the Company when, and if, the Company declares dividends on its common stock. Basic earnings per share ( “ Basic EPS ” ) for the Company ’ s common stock are computed by dividing net income allocable to common stockholders by the weighted average number of shares of common stock outstanding for the period, respectively. Diluted earnings per share ( “ Diluted EPS ” ) is calculated similarly, however, it reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower earnings per share amount. |
Stockholder Servicing Fee | Stockholder Servicing Fee The Company has entered into a dealer manager agreement with Brookfield Oaktree Wealth Solutions LLC, a registered broker-dealer affiliated with the Adviser (“Dealer Manager”), to serve as the dealer manager for the Current Offering. The Dealer Manager is entitled to receive upfront selling commissions and dealer manager fees of up to 3.5% of the transaction price and ongoing stockholder servicing fees of 0.85% per annum of the aggregate NAV for outstanding Class S and Class T shares with a limit of up to, in the aggregate, 8.75% of the gross proceeds from such shares. The Dealer Manager is entitled to receive upfront selling commissions of up to 1.5% of the transaction price and ongoing stockholder servicing fees of 0.25% per annum of the aggregate NAV for outstanding Class D shares with a limit of up to, in the aggregate, 8.75% of the gross proceeds from such shares. There are no upfront selling commissions, dealer manager fees or ongoing stockholder servicing fees with respect to Class I shares. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Current Offering, which provide, among other things, for the re-allowance of the full amount of the selling commissions and dealer manager fees and all or a portion of the stockholder servicing fees received by the Dealer Manager to such selected dealers. The Company accrues 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, which is recorded as a component of Due to affiliates in the Company’s Consolidated Balance Sheets. The Company previously accrued upfront selling commissions and ongoing stockholder servicing fees on a monthly basis as incurred and recorded the monthly accrual as a reduction of additional paid-in capital as part of the offering costs on the Company’s Consolidated Statements of Changes in Stockholders’ Equity. During the quarter ended September 30, 2021, the Company determined that it should have accrued the full cost of stockholder servicing fees for Class S shares at the time the shares were issued based on the contractual cap of 8.75% of gross proceeds (no Class T or Class D shares had been issued prior to September 30, 2021). The Company assessed the cumulative impact of the error on accounts payable, accrued expenses and other liabilities and additional paid-in capital as of and for the years ended December 31, 2020 and 2019. In accordance with SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company assessed the materiality of this correction on its financial statements for the years ended December 31, 2020 and 2019. As a result of its analysis, the Company recorded a $12.3 million reduction to equity and a corresponding increase in accounts payable, accrued expenses and other liabilities as of September 30, 2021. The Company concluded the effect was not material to its financial statements for any prior period nor the current year and, as such, those financial statements are not materially misstated. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued guidance which provides temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform Accounting Standards Update (“ASU”) 2020-04, and 2022-06 - Reference Rate Reform ("Topic 848"). Among other things, for all types of hedging relationships, Topic 848 allows an entity to change the reference rate and other critical terms related to reference rate reform without having to remeasure the value or reassess a previous accounting determination. The amendments in this guidance may be applied immediately on a prospective basis to any related changes through December 31, 2024. When the LIBOR transition occurs, the Company expects to apply this expedient to its existing debt instruments and interest rate swaps that reference LIBOR, and to any other new transactions that reference LIBOR or another reference rate that is discontinued, through December 31, 2024. As of December 31, 2022, the Company evaluated the possible adoption of any such expedients or exceptions and it did not have any impact on the Company’s consolidated financial statements or disclosures. In February 2016, the FASB issued ASU 2016-02 - Leases (Topic 842), and related ASU’s subsequently issued (collectively, “ASC 842”), which requires lessees to classify leases as either finance or operating leases based on certain criteria and record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. As of January 1, 2022, the Company adopted the lease guidance. The Company’s rental revenue primarily consists of base rent arising from tenant leases at the Company’s properties under operating leases. 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 non-lease 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 non-lease components are accounted for in accordance with ASC 842 and reported as rental revenues in the accompanying Consolidated Statements of Operations. As of December 31, 2022, the Company had no investments in real estate subject to ground leases and has therefore not recorded any right-of-use assets and lease liabilities in the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to amend the accounting for credit losses for certain financial instruments. The standard replaced the incurred loss impairment methodology pursuant to GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. As of January 1, 2022, the Company adopted this guidance and it did not have a material impact on the Company’s Consolidated Financial Statements. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | 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 30-40 years Building and site improvements 5-21 years Furniture, fixtures and equipment 1-9 years Tenant improvements Shorter of estimated useful life or lease term In-place lease intangibles Over lease term Above and below market leases Over lease term Lease origination costs Over lease term Present value of tax abatement savings Over tax abatement period |
Derivatives Not Designated as Hedging Instruments | As of December 31, 2022, the Company’s derivative instruments consisted of the following ($ and £ in thousands): Number of Instruments Notional Amount Weighted Average Strike Rate Weighted Average Maturity (years) Interest Rate Swaps 1 $ 33,800 0.7% 1.6 Interest Rate Caps 3 $ 170,350 4.3% 0.8 Foreign Currency Swap Contracts 1 £ 73,300 N/A 0.6 |
Fair Value, Assets Measured on Recurring Basis | The following table details the Company’s assets measured at fair value on a recurring basis ($ in thousands): December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Investments in real estate-related securities $ — $ 299,894 $ — $ 299,894 $ — $ 19,511 $ — $ 19,511 Investment in unconsolidated entities — — 80,591 80,591 — — 100,840 100,840 Derivatives — 4,349 — 4,349 — 1,514 — 1,514 Total $ — $ 304,243 $ 80,591 $ 384,834 $ — $ 21,025 $ 100,840 $ 121,865 The following table details the Company’s assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Investment in unconsolidated entities Balance as of December 31, 2021 $ 100,840 Distributions of earnings from unconsolidated entities (3,256) Unrealized loss on investments, net (16,993) Balance as of December 31, 2022 $ 80,591 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of Real Estate Properties [Table Text Block] | December 31, 2022 and 2021, investments in real estate, net, consisted of the following: ($ in thousands): December 31, 2022 December 31, 2021 Building and building improvements $ 1,321,137 $ 874,834 Land and land improvements 261,487 164,901 Tenant improvements 34,468 35,592 Furniture, fixtures and equipment 25,996 11,061 Accumulated depreciation (62,124) (20,630) Investments in real estate, net $ 1,580,964 $ 1,065,758 Investment Ownership Interest Location Segment Acquisition Date Square Feet/Units Purchase Price (1) 1110 Key Federal Hill 100% Baltimore, MD Multifamily September 2021 224 $ 75,153 Domain 100% Orlando, FL Multifamily November 2021 324 74,157 The Burnham 100% Nashville, TN Multifamily November 2021 328 129,057 6123-6227 Monroe Ct 100% Morton Grove, IL Logistics November 2021 208,000 17,265 8400 Westphalia Road 100% Upper Marlboro, MD Logistics November 2021 100,000 27,961 McLane Distribution Center 100% Lakeland, FL Logistics November 2021 211,000 26,755 Flats on Front 100% Wilmington, NC Multifamily December 2021 273 97,728 Verso Apartments 100% Beaverton, OR Multifamily December 2021 172 74,216 DreamWorks Animation Studios 100% Glendale, CA Net Lease December 2021 497,000 326,743 Single-Family Rentals 100% Various Single-Family Rental Various 2021 14 3,840 2626 South Side Flats 100% Pittsburgh, PA Multifamily January 2022 264 92,459 2003 Beaver Road 100% Landover, MD Logistics February 2022 38,000 9,646 187 Bartram Parkway 100% Franklin, IN Logistics February 2022 300,000 28,912 The Parker 100% Alexandria, VA Multifamily March 2022 360 136,779 Briggs & Union 100% Mount Laurel, NJ Multifamily April 2022 490 158,648 Single-Family Rentals 100% Various Single-Family Rental Various 2022 466 123,995 $ 1,403,314 (1) Purchase price is inclusive of closing costs. The following table summarizes the purchase price allocation of the properties acquired during the years ended December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Building and building improvements $ 453,211 $ 660,098 Land and land improvements 78,095 145,611 Tenant improvements 1,232 24,991 Furniture, fixtures and equipment 9,530 6,308 In-place lease intangibles 5,664 32,519 Lease origination costs 902 8,535 Tax abatement intangible 2,195 3,054 Above-market lease intangibles 65 178 Below-market lease intangibles (454) (28,420) Total purchase price (1) 550,440 852,874 Assumed debt (2) — 132,550 Net purchase price $ 550,440 $ 720,324 (1) Purchase price is inclusive of closing costs. (2) Refer to Note 9 for additional details on the Company’s mortgage loans and indebtedness. |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information of Unconsolidated Joint Venture | As of December 31, 2022 As of December 31, 2021 Total Assets $ 1,019,861 $ 1,133,943 Total Liabilities 602,652 640,810 Total Equity $ 417,209 $ 493,133 For the Year Ended December 31, 2022 For the period Total Revenues $ 46,146 $ 5,892 Total Expenses 51,318 9,286 Net Loss $ (5,172) $ (3,394) |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Carrying Amount and Accumulated Amortization of Intangible Assets | Intangible assets December 31, 2022 December 31, 2021 In-place lease intangibles $ 33,141 $ 41,210 Lease origination costs 13,667 12,611 Lease inducements 1,708 1,708 Tax intangibles 5,249 3,054 Above-market lease intangibles 114 184 Total intangible assets 53,879 58,767 Accumulated amortization: In-place lease intangibles (4,823) (8,081) Lease origination costs (2,887) (973) Lease inducements (787) (534) Tax intangibles (669) (21) Above-market lease intangibles (18) (6) Total accumulated amortization (9,184) (9,615) Intangible assets, net $ 44,695 $ 49,152 Intangible liabilities: Below-market lease intangibles $ (28,919) $ (28,521) Accumulated amortization 1,444 137 Intangible liabilities, net $ (27,475) $ (28,384) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | |
Schedule of Finite-Lived Intangible Liabilities, Future Amortization Expense |
Investments in Real Estate-Re_2
Investments in Real Estate-Related Loans and Securities (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Schedule Of Investments in Real Estate-Related Loans and Securities | The following table summarizes the components of investments in real estate-related loans and securities as of December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Real estate-related loans $ 32,760 $ 35,563 Real estate-related securities 299,894 19,511 Total investments in real estate-related loans and securities $ 332,654 $ 55,074 | |
Investment In Real Estate Loans | The following tables detail the Company’s real estate-related loan investments as of December 31, 2022 and 2021 ($ in thousands). In November 2022, the borrower repaid the outstanding principal balance on the 111 Montgomery loan prior to maturity. December 31, 2022 Investment Collateral Interest Rate (1) Maturity Date Payment Terms Face Amount Unamortized Discount/Origination Fees Carrying Amount IMC/AMC Bond Investment International Markets Center L+6.15% December 2023 Principal due at maturity $ 25,000 $ (78) $ 24,922 The Avery Senior Loan (2) The Avery Condominium L+7.30% February 2023 (3) Principal due at maturity (4) 6,315 (5) 6,310 The Avery Mezzanine Loan (2) The Avery Condominium L+12.50% February 2023 (3) Principal due at maturity (4) 1,529 (1) 1,528 Total $ 32,844 $ (84) $ 32,760 (1) The term “L” refers to the one-month US dollar-denominated LIBOR. As of December 31, 2022, one-month LIBOR was equal to 4.39%. (2) The Company’s investment is held through its membership interest in an entity which aggregates the Company’s interest with interests held by other funds managed by the Sub-Adviser. The Company has been allocated its proportionate share of the loan based on its membership interest in the aggregating entity. (3) The Sub-Adviser is negotiating a loan modification with the borrower. (4) The loan agreement requires mandatory prepayments simultaneous with the closing of the sale of any condominium unit. During the year ended December 31, 2022, t he Company received aggregate net repayments of $3.1 million. December 31, 2021 Investment Collateral Interest Rate (1) Maturity Date Payment Terms Face Amount Unamortized Discount/Origination Fees Carrying Amount IMC/AMC Bond Investment International Markets Center L+6.15% December 2023 Principal due at maturity $ 25,000 $ (164) $ 24,836 111 Montgomery (2) The 111 Montgomery Street Condominium L+7.00% February 2023 Principal due at maturity (3) 1,440 (91) 1,349 The Avery Senior Loan (2) The Avery Condominium L+7.30% February 2023 Principal due at maturity (3) 7,656 (65) 7,591 The Avery Mezzanine Loan (2) The Avery Condominium L+12.50% February 2023 Principal due at maturity (3) 1,802 (15) 1,787 Total $ 35,898 $ (335) $ 35,563 (1) The term “L” refers to the one-month US dollar-denominated LIBOR. As of December 31, 2021, one-month LIBOR was equal to 0.10%. (2) The Company’s investment is held through its membership interest in an entity which aggregates the Company’s interest with interests held by other funds managed by the Sub-Adviser. The Company has been allocated its proportionate share of the loan based on its membership interest in the aggregating entity. (3) The loan agreement requires mandatory prepayments simultaneous with the closing of the sale of any condominium unit. During the year ended December 31, 2021, t he Company received aggregate net repayments of $5.8 million. | |
Schedule Of Investments In Real Estate-Related Securities | December 31, 2022 Type of Security Number of Positions Weighted Average Coupon (1) Weighted Average Maturity Date (2) Face Amount Cost Basis Fair Value CMBS - floating 33 L+3.64% November 2025 $ 177,192 $ 169,014 $ 168,765 CMBS - fixed 10 4.54% June 2024 74,771 69,705 69,555 RMBS - floating 8 L+2.46% November 2024 19,325 19,048 19,175 RMBS - fixed 24 4.69% February 2026 42,989 41,658 40,414 Corporate bonds 1 4.75% March 2029 2,500 2,075 1,985 Total 76 6.63% July 2025 $ 316,777 $ 301,500 $ 299,894 December 31, 2021 Type of Security Number of Positions Weighted Average Coupon (1) Weighted Average Maturity Date (2) Face Amount Cost Basis Fair Value CMBS - floating 4 L+4.00% February 2030 $ 19,760 $ 17,790 $ 19,511 Total 4 L+4.00% February 2030 $ 19,760 $ 17,790 $ 19,511 (1) The term “L” refers to the relevant floating benchmark rates, which include USD LIBOR and Secured Overnight Financing Rate (“SOFR”), as applicable to each security and loan. As of December 31, 2022 and 2021, one-month LIBOR was equal to 4.39% and 0.10%, respectively. As of December 31, 2022 and 2021, SOFR was equal to 4.30% and 0.05%, respectively. (2) Weighted average maturity date is based on the fully extended maturity date of the instruments. |
Accounts and Other Receivable_2
Accounts and Other Receivables and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Accounts and Other Receivables and Other Assets | The following table summarizes the components of accounts and other receivables and other assets as of December 31, 2022 and 2021 ($ in thousands): Accounts and other receivables, net December 31, 2022 December 31, 2021 Straight-line rent receivables $ 4,132 $ 2,253 Accounts receivable 3,285 1,258 Interest receivable 1,243 294 Allowance for doubtful accounts (278) (49) Total accounts and other receivables, net $ 8,382 $ 3,756 Other assets December 31, 2022 December 31, 2021 Trading securities $ 15,918 $ — Derivative instruments 4,349 1,514 Prepaid expenses 2,344 2,182 Other 457 501 Acquisition Deposits 120 6,321 Total other assets $ 23,188 $ 10,518 |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The following table summarizes the components of accounts payable, accrued expenses and other liabilities as of December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Stock repurchases payable $ 12,586 $ 1,594 Accounts payable and accrued expenses 10,901 6,616 Distribution payable 5,250 2,823 Real estate taxes payable 3,508 2,350 Accrued interest expense 3,217 509 Tenant security deposits 2,895 1,286 Prepaid rent 1,234 1,045 Total accounts payable, accrued expenses and other liabilities $ 39,591 $ 16,223 |
Mortgage Loans, Secured Term _2
Mortgage Loans, Secured Term Loan and Secured Credit Facility (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table summarizes the components of mortgage loans and indebtedness as of December 31, 2022 and 2021 ($ in thousands): Maturity Date (2) Principal Balance Outstanding Indebtedness Interest Rate (1) December 31, 2022 December 31, 2021 Anzio Apartments mortgage loan L+1.59% May 2029 $ 44,400 $ 44,400 Two Liberty Center mortgage loan L+1.50% August 2024 62,085 62,085 Lakes at West Covina mortgage loan L+1.55% February 2025 25,604 25,604 Arbors of Las Colinas mortgage loan SOFR+2.24% January 2031 45,950 45,950 1110 Key Federal Hill mortgage loan 2.34% October 2028 51,520 51,520 Domain mortgage loan SOFR+1.50% December 2026 48,700 48,700 DreamWorks Animation Studios mortgage loan 3.20% March 2029 212,200 214,750 Briggs & Union mortgage loan SOFR+1.75% December 2027 80,000 — Secured Multifamily Term Loan SOFR+1.70% March 2027 372,760 — Secured Credit Facility (3)(4) SOFR+2.00% January 2025 118,985 244,402 Affiliate Line of Credit (5) SOFR+2.25% November 2023 — 105,000 Total indebtedness 1,062,204 842,411 Less: deferred financing costs, net (7,907) (3,618) Total indebtedness, net $ 1,054,297 $ 838,793 (1) The term “L” refers to the one-month US dollar-denominated LIBOR. As of December 31, 2022 and 2021, one-month LIBOR was equal to 4.39% and 0.10%, respectively. The term “SOFR” refers to the Secured Overnight Financing Rate. As of December 31, 2022 and 2021, SOFR was 4.30% and 0.05%, respectively. (2) Includes the fully extended maturity date for loans with extension options that are at the Company’s discretion and the Company currently expects to be able to exercise. (3) The Company assumed debt totaling $132.6 million in connection with the acquisition of Domain and The Burnham. The debt was refinanced in November 2021 with a $48.7 million mortgage loan secured by Domain and a $83.9 million borrowing on the Secured Credit Facility secured by The Burnham. (4) As of December 31, 2022, borrowings on the Secured Credit Facility were secured by the following properties: 6123-6227 Monroe Court, 2003 Beaver Road, 187 Bartram Parkway, and certain properties in the Single Family Rental Portfolio. In November 2022, the Company repaid an aggregate $36.4 million of the principal balance outstanding related to borrowings secured by 8400 Westphalia Road and McLane Distribution Center. In December 2022, the Company repaid $103.6 million of the principal balance outstanding related to borrowing secured by Briggs & Union. As of December 31, 2021, borrowings on the Secured Credit Facility were secured by the following properties: The Burnham, Flats on Front, Verso Apartments, 8400 Westphalia Road, 6123-6227 Monroe Court, and McLane Distribution Center. (5) Borrowings under the Affiliate Line of Credit bear interest at a rate of the lowest then-current interest rate for any similar credit product offered by a third-party lender to the Company or its subsidiaries or, if not available, SOFR plus a 0.10% credit adjustment and a 2.25% margin. |
Schedule of Maturities of Long-term Debt | Year Amount 2023 $ — 2024 62,405 2025 145,242 2026 50,075 2027 454,258 Thereafter 350,224 Total $ 1,062,204 |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes the Company’s affiliate service provider expenses for the years ended December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Property management fees (1) $ 2,203 $ 153 Single-family rental leasing, maintenance and turnover oversight fees (1) 446 — Capitalized construction management fees (2) 139 — Capitalized single-family rental renovation oversight fees (2) 402 — Reimbursed personnel costs (3) 5,363 475 Total $ 8,553 $ 628 (1) Included in Rental property operating expenses on the Company's Consolidated Statements of Operations. (2) Included in Investments in real estate, net on the Company's Consolidated Balance Sheets. (3) $4.8 million included in Rental property operating expenses and $0.5 million included in General and administrative expenses on the Company's Consolidated Statements of Operations. The following table details the components of due to affiliates ($ in thousands): December 31, 2022 December 31, 2021 Accrued stockholder servicing fee $ 29,477 $ 14,219 Advanced organization and offering costs 12,002 12,022 Accrued performance fee 6,566 — Other (1) 2,118 — Accrued management fee 1,239 621 Accrued affiliate service provider expenses 887 — OP Units Distributions Payable 5 — Stock repurchase payable to Oaktree Adviser for management and performance fees — 6,682 Accrued performance participation allocation — 2,346 Total $ 52,294 $ 35,890 (1) Represents costs advanced by the Adviser and the Sub-Adviser on behalf of the Company for general corporate expenses provided by unaffiliated third parties. |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | Classification No. of Authorized Shares (in thousands) Par Value Preferred stock 50,000 $ 0.01 Class T common stock 225,000 $ 0.01 Class S common stock 225,000 $ 0.01 Class D common stock 100,000 $ 0.01 Class C common stock 100,000 $ 0.00 Class E common stock 100,000 $ 0.00 Class I common stock 250,000 $ 0.01 1,050,000 |
Schedule of Common Stock Outstanding Roll Forward | The following table details the movement in the Company’s outstanding shares of common stock (in thousands): Class S Class I Class D Class T (1) Class C Class E Total December 31, 2019 5,852 9,146 — — — — 14,997 Common stock issued 7,041 838 — — — — 7,879 Distribution reinvestment 206 10 — — — — 216 Common stock repurchased (66) (2,522) — — — — (2,588) Independent directors’ restricted stock vested (2) — 6 — — — — 6 December 31, 2020 13,033 7,478 — — — — 20,510 Common stock issued 7,146 2,225 — — 1,644 2,089 13,104 Distribution reinvestment 432 35 — — — 9 476 Common stock repurchased (565) (6,926) — — — — (7,491) Independent directors’ restricted stock vested (2) — 13 — — — — 13 December 31, 2021 20,046 2,825 — — 1,644 2,098 26,612 Common stock issued 17,686 41,459 36 — 7,974 1,186 68,341 Distribution reinvestment 793 769 — — — 151 1,713 Common stock repurchased (1,821) (2,656) — — (275) (225) (4,977) December 31, 2022 36,704 42,397 36 — 9,343 3,210 91,689 (1) As of December 31, 2022, no Class T shares of common stock had been issued. (2) The independent directors’ restricted stock grants represent an aggregate $0.3 million, $0.1 million and $0.1 million of the annual compensation paid to the independent directors for the years ended December 31, 2022, 2021 and 2020, respectively. Each grant is amortized over the one year service period of such grant. The restricted stock generally vests one year from the date of the grant. In November 2021, the restricted stock grants related to the independent directors’ annual compensation for the year ended December 31, 2021, vested upon the resignation of the independent directions in connection with the Adviser Transition. The restricted stock grants related to the independent directors’ annual compensation for the year ended December 31, 2022, will vest in March 2023. |
Dividends Declared | The following table details the net distributions declared for each applicable class of common stock: Year Ended December 31, 2022 Class S Class I Class D (1) Class T (2) Class C Class E Aggregate gross distributions declared per share of common stock $ 0.8715 $ 0.8715 $ 0.5199 $ — $ 0.8715 $ 0.8715 Stockholder servicing fee per share of common stock (0.1100) — (0.0200) — — — Management fee per share of common stock (0.1681) (0.1689) (0.1005) — (0.1661) — Net distributions declared per share of common stock $ 0.5934 $ 0.7026 $ 0.3994 $ — $ 0.7054 $ 0.8715 (1) The Company issued its first Class D shares of common stock in June 2022, thus no distributions were declared for Class D prior to this date. (2) The Company did not have any Class T shares of common stock issued or outstanding, thus no distributions were declared for Class T during the year ended December 31, 2022. Year Ended December 31, 2021 Class S Class I Class D (1) Class T (1) Class C (2) Class E (3) Aggregate gross distributions declared per share of common stock $ 0.5389 $ 0.5389 $ — $ — $ 0.4549 $ 0.1063 Stockholder servicing fee per share of common stock (0.0926) — — — — — Net distributions declared per share of common stock $ 0.4463 $ 0.5389 $ — $ — $ 0.4549 $ 0.1063 (1) The Company did not have any Class D or Class T shares of common stock issued or outstanding, thus no distributions were declared for Class D or Class T during the year ended December 31, 2021. (2) The Company issued its first Class C shares of common stock in March 2021, thus no distributions were declared for Class C prior to this date. (3) The Company issued its first Class E shares of common stock in November 2021, thus no distributions were declared for Class E prior to this date. Year Ended December 31, 2020 Class S Class I Class D (1) Class T (1) Aggregate gross distributions declared per share of common stock $ 0.4323 $ 0.4323 $ — $ — Stockholder servicing fee per share of common stock (0.0874) — — — Net distributions declared per share of common stock $ 0.3449 $ 0.4323 $ — $ — (1) The Company did not have any Class D or Class T shares of common stock issued or outstanding, thus no distributions were declared for Class D or Class T during the year ended December 31, 2020. |
Redeemable Noncontrolling Interest | The following table summarizes the Redeemable non-controlling interest activity for the years ended December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Balance at beginning of the year $ 200,086 $ — Limited Partner Asset Contributions — 148,175 Limited Partner Cash Contributions 38,000 45,000 Settlement of prior year performance participation allocation 2,346 Conversion to Class I shares (284,785) GAAP Income Allocation (4,669) 2,578 Distributions (6,951) (1,521) Distributions Reinvested 7,819 649 Fair Value Allocation 49,144 5,205 Balance at the end of the year $ 990 $ 200,086 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost | The following table details the components of operating lease income from leases in which the Company is the lessor for the period set forth below($ in thousands): Year Ended December 31, 2022 Fixed lease payments $ 102,890 Variable lease payments 5,762 Total rental revenues $ 108,652 |
Lessee, Operating Lease, Liability, Maturity | The following table details the undiscounted future minimum rents the Company expects to receive for its logistics, net lease, and office properties as of December 31, 2022. The table below excludes the Company’s multifamily and single-family rental properties as substantially all leases are shorter term in nature ($ in thousands). Year Future Minimum Rents 2023 $ 32,308 2024 29,337 2025 28,211 2026 25,394 2027 23,102 Thereafter 143,114 Total $ 281,466 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | December 31, 2022 December 31, 2021 Multifamily $ 944,453 $ 583,308 Office 124,001 126,966 Logistics 112,019 74,039 Single-Family Rental 142,461 5,011 Net Lease 426,789 457,456 Real Estate-Related Loans and Securities 332,654 55,074 Other (Corporate) 68,096 72,859 Total assets $ 2,150,473 $ 1,374,713 The following table sets forth the financial results by segment for the year ended December 31, 2022 ($ in thousands): Multifamily Office Logistics Single-Family Rental Net Lease Real Estate-Related Loans and Securities Total Revenues: Rental revenues $ 65,302 $ 12,844 $ 6,632 $ 4,503 $ 19,371 $ — $ 108,652 Other revenues 8,684 658 — 274 — — 9,616 Total revenues 73,986 13,502 6,632 4,777 19,371 — 118,268 Expenses: Rental property operating 28,752 5,917 1,978 2,312 2,343 — 41,302 Total expenses 28,752 5,917 1,978 2,312 2,343 — 41,302 Income from real estate-related loans and securities — — — — — 11,322 11,322 Segment net operating income $ 45,234 $ 7,585 $ 4,654 $ 2,465 $ 17,028 $ 11,322 $ 88,288 Realized gain on real estate investments $ 726 Realized gain on financial instruments 10,572 Unrealized loss on investments (16,750) Depreciation and amortization 55,684 General and administrative expenses 9,562 Management fee 10,512 Performance fee 6,566 Interest expense 39,718 Net loss $ (39,206) Net loss attributable to non-controlling interests in third party joint ventures 148 Net income attributable to non-controlling interests - preferred stockholders (24) Net loss attributable to redeemable non-controlling interests 4,669 Net loss attributable to stockholders $ (34,413) The following table sets forth the financial results by segment for the year ended December 31, 2021 ($ in thousands): Multifamily Office Logistics Single-Family Rental Net Lease Real Estate-Related Loans and Securities Total Revenues: Rental revenues $ 21,180 $ 12,471 $ 419 $ — $ 717 $ — $ 34,787 Other revenues 1,983 608 — — — — 2,591 Total revenues 23,163 13,079 419 — 717 — 37,378 Expenses: Rental property operating 9,707 5,495 148 5 110 — 15,465 Total expenses 9,707 5,495 148 5 110 — 15,465 Income from real estate-related loans and securities — — — — — 5,442 5,442 Segment net operating income $ 13,456 $ 7,584 $ 271 $ (5) $ 607 $ 5,442 $ 27,355 Realized gain on real estate investments $ 21,493 Unrealized gain on investments 1,837 Depreciation and amortization 18,370 General and administrative expenses 7,057 Organizational costs 3,459 Management fee 2,651 Performance fee 5,143 Performance participation allocation 2,346 Interest expense 6,758 Net income $ 4,901 Net loss attributable to non-controlling interests in third party joint ventures 183 Net income attributable to redeemable non-controlling interests (2,578) Net income attributable to stockholders $ 2,506 The following table sets forth the financial results by segment for the year ended December 31, 2020 ($ in thousands): Multifamily Office Real Estate- Total Revenues: Rental revenues $ 11,682 $ 12,463 $ — $ 24,145 Other revenues 496 645 — 1,141 Total revenues 12,178 13,108 — 25,286 Expenses: Rental property operating 4,859 5,352 — 10,211 Total expenses 4,859 5,352 — 10,211 Income from real estate-related loans and securities — — 4,908 4,908 Segment net operating income $ 7,319 $ 7,756 $ 4,908 $ 19,983 Realized gain on investments $ 144 Unrealized gain on investments 2,417 Depreciation and amortization 13,481 General and administrative expenses 3,474 Management fee 1,171 Performance fee 2,215 Interest expense 4,948 Net loss $ (2,745) Net loss attributable to non-controlling interests in third party joint ventures 307 Net loss attributable to stockholders $ (2,438) |
Organization and Business Pur_2
Organization and Business Purpose - Additional Information (Detail) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) investment classOfCommonStock investment_in_real_estate reportableSegment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Class of Stock [Line Items] | ||||
Offering of common stock | $ 931,638 | $ 144,402 | $ 80,970 | |
Number of classes of common shares | classOfCommonStock | 4 | |||
Number of real estate properties | investment_in_real_estate | 19 | |||
Number of real estate investments, unconsolidated real estate and other joint ventures | investment | 1 | |||
Number of positions in real estate-related loans | investment | 3 | |||
Number of investments in floating-rate commercial mortgage backed securities | investment | 76 | |||
Number of reportable segments | reportableSegment | 6 | |||
Primary Offering | Maximum | ||||
Class of Stock [Line Items] | ||||
Offering of common stock | $ 2,000,000 | |||
Distribution Reinvestment Plan | Maximum | ||||
Class of Stock [Line Items] | ||||
Offering of common stock | 7,500,000 | |||
Follow-On Primary Offering | Maximum | ||||
Class of Stock [Line Items] | ||||
Offering of common stock | 6,000,000 | |||
Follow-On Distribution Reinvestment Plan Offering | Maximum | ||||
Class of Stock [Line Items] | ||||
Offering of common stock | $ 1,500,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) investment propertyHeld-for-sale shares | Dec. 31, 2021 USD ($) propertyHeld-for-sale shares | Dec. 31, 2020 USD ($) | Jul. 05, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Real Estate Properties [Line Items] | |||||
Impairment of real estate | $ 0 | ||||
Number of properties held for sale | propertyHeld-for-sale | 0 | 0 | |||
Unrealized gain (loss) on derivatives | $ 3,400,000 | $ 1,500,000 | $ (600,000) | ||
Realized gain on financial instruments | 10,572,000 | $ 0 | $ 0 | ||
Advanced organization and offering expense | $ 700,000 | $ 12,500,000 | |||
Dilutive participating securities | shares | 0 | 0 | |||
Accounts payable, accrued expenses and other liabilities | $ 39,591,000 | $ 16,223,000 | |||
Stockholders' equity attributable to parent | $ 963,214,000 | $ 226,062,000 | |||
Number of investments in real estate subject to ground leases | investment | 0 | ||||
Adjustment Of Prior Period Misstatements | |||||
Real Estate Properties [Line Items] | |||||
Accounts payable, accrued expenses and other liabilities | $ 12,300,000 | ||||
Stockholders' equity attributable to parent | $ 12,300,000 | ||||
Class S And Class T Member | |||||
Real Estate Properties [Line Items] | |||||
Percentage of gross proceeds | 0.035 | ||||
Payment of stock issuance costs, annual servicing fees, percentage of gross proceeds | 0.0085 | ||||
Maximum aggregate fees, percentage of gross proceeds | 0.0875 | ||||
Class D common stock | |||||
Real Estate Properties [Line Items] | |||||
Percentage of gross proceeds | 0.015 | ||||
Payment of stock issuance costs, annual servicing fees, percentage of gross proceeds | 0.0025 | ||||
Maximum aggregate fees, percentage of gross proceeds | 0.0875 | ||||
Class I common stock | |||||
Real Estate Properties [Line Items] | |||||
Percentage of gross proceeds | 0 | ||||
Fair Value, Recurring | |||||
Real Estate Properties [Line Items] | |||||
Notes payable, fair value | $ 27,800,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Property, Plant and Equipment Useful Life (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | Building | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life | 30 years |
Minimum | Building and building improvements | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life | 5 years |
Minimum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life | 1 year |
Maximum | Building | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life | 40 years |
Maximum | Building and building improvements | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life | 21 years |
Maximum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life | 9 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Derivative Instruments (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) segment | |
Interest Rate Swaps | |
Derivative [Line Items] | |
Number of Instruments | segment | 1 |
Notional Amount | $ | $ 33,800,000 |
Weighted Average Strike Rate | 0.007 |
Weighted Average Maturity (years) | 1 year 7 months 6 days |
Interest Rate Caps | |
Derivative [Line Items] | |
Number of Instruments | segment | 3 |
Notional Amount | $ | $ 170,350,000 |
Weighted Average Strike Rate | 0.043 |
Weighted Average Maturity (years) | 9 months 18 days |
Foreign Currency Swap Contracts | |
Derivative [Line Items] | |
Number of Instruments | segment | 1 |
Notional Amount | $ | $ 73,300,000 |
Weighted Average Maturity (years) | 7 months 6 days |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 4,349 | $ 1,514 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Distributions of earnings from unconsolidated entities | (3,256) | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate-related securities | 299,894 | 19,511 |
Investment in unconsolidated entities | 80,591 | 100,840 |
Derivatives | 4,349 | 1,514 |
Total | 384,834 | 121,865 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of December 31, 2021 | 100,840 | |
Balance as of December 31, 2022 | 80,591 | |
Level 1 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate-related securities | 0 | 0 |
Investment in unconsolidated entities | 0 | 0 |
Derivatives | 0 | 0 |
Total | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of December 31, 2021 | 0 | |
Balance as of December 31, 2022 | 0 | |
Level 2 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate-related securities | 299,894 | 19,511 |
Investment in unconsolidated entities | 0 | 0 |
Derivatives | 4,349 | 1,514 |
Total | 304,243 | 21,025 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of December 31, 2021 | 0 | |
Balance as of December 31, 2022 | 0 | |
Level 3 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate-related securities | 0 | 0 |
Investment in unconsolidated entities | 80,591 | 100,840 |
Derivatives | 0 | 0 |
Total | 80,591 | $ 100,840 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of December 31, 2021 | 100,840 | |
Unrealized loss on investments, net | (16,993) | |
Balance as of December 31, 2022 | $ 80,591 |
Investments in Real Estate - In
Investments in Real Estate - Investments in Real Estate, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Building and building improvements | $ 1,321,137 | $ 874,834 |
Land and land improvements | 261,487 | 164,901 |
Tenant improvements | 34,468 | 35,592 |
Furniture, fixtures and equipment | 25,996 | 11,061 |
Accumulated depreciation | (62,124) | (20,630) |
Investments in real estate, net | $ 1,580,964 | $ 1,065,758 |
Investments in Real Estate - Na
Investments in Real Estate - Narrative (Details) $ in Thousands | 12 Months Ended | 24 Months Ended | ||||||
Dec. 31, 2022 USD ($) multifamilyProperty | Dec. 31, 2021 USD ($) multifamilyProperty | Dec. 31, 2022 USD ($) multifamilyProperty | Dec. 31, 2022 logisticProperty | Dec. 31, 2022 singleFamilyRentalProperty | Dec. 31, 2021 logisticProperty | Dec. 31, 2021 singleFamilyRentalProperty | Dec. 31, 2021 alternativeProperty | |
Real Estate [Abstract] | ||||||||
Purchase price | $ 545,200 | $ 852,900 | $ 1,403,314 | |||||
Investment In Real Estate, Number Of Properties Acquired | 3 | 5 | 3 | 2 | 466 | 3 | 14 | 1 |
Investments in Real Estate - Pr
Investments in Real Estate - Properties Acquired During Period (Details) $ in Thousands | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) ft² | Dec. 31, 2022 USD ($) ft² | |
Real Estate [Line Items] | |||
Purchase price | $ 545,200 | $ 852,900 | $ 1,403,314 |
1110 Key Federal Hill | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 224 | ||
Purchase price | $ 75,153 | ||
Domain | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 324 | ||
Purchase price | $ 74,157 | ||
The Burnham | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 328 | ||
Purchase price | $ 129,057 | ||
6123-6227 Monroe Ct | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 208,000 | ||
Purchase price | $ 17,265 | ||
8400 Westphalia Road | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 100,000 | ||
Purchase price | $ 27,961 | ||
McLane Distribution Center | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 211,000 | ||
Purchase price | $ 26,755 | ||
Flats on Front | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 273 | ||
Purchase price | $ 97,728 | ||
Verso Apartments | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 172 | ||
Purchase price | $ 74,216 | ||
DreamWorks Animation Studios | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 497,000 | ||
Purchase price | $ 326,743 | ||
Single Family Rental Portfolio 2021 | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 14 | 14 | |
Purchase price | $ 3,840 | ||
2626 South Side Flats | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 264 | 264 | |
Purchase price | $ 92,459 | ||
2003 Beaver Road | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 38,000 | 38,000 | |
Purchase price | $ 9,646 | ||
187 Bartram Parkway | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 300,000 | 300,000 | |
Purchase price | $ 28,912 | ||
The Parker | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 360 | 360 | |
Purchase price | $ 136,779 | ||
Briggs & Union | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 490 | 490 | |
Purchase price | $ 158,648 | ||
Single Family Rental Portfolio 2022 | |||
Real Estate [Line Items] | |||
Ownership Interest | 100% | ||
Square Feet/Units | ft² | 466 | 466 | |
Purchase price | $ 123,995 |
Investments in Real Estate - Pu
Investments in Real Estate - Purchase Price Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate [Line Items] | |||
Building and building improvements | $ 1,321,137 | $ 874,834 | |
Land and land improvements | 261,487 | 164,901 | |
Tenant improvements | 34,468 | 35,592 | |
Furniture, fixtures and equipment | 25,996 | 11,061 | |
Total purchase price | 547,399 | 649,661 | $ 105,137 |
Assumed debt | 0 | 132,550 | |
Net purchase price | 550,440 | 720,324 | |
1110 Key Federal Hill mortgage loan | |||
Real Estate [Line Items] | |||
Building and building improvements | 453,211 | 660,098 | |
Land and land improvements | 78,095 | 145,611 | |
Tenant improvements | 1,232 | 24,991 | |
Furniture, fixtures and equipment | 9,530 | 6,308 | |
In-place lease intangibles | 5,664 | 32,519 | |
Lease origination costs | 902 | 8,535 | |
Tax abatement intangible | 2,195 | 3,054 | |
Above-market lease intangibles | 65 | 178 | |
Below-market lease intangibles | (454) | (28,420) | |
Total purchase price | $ 550,440 | $ 852,874 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 18, 2022 | Nov. 02, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Preferred equity interest | $ 28,800 | ||||
Proceeds from issuance of preferred units | $ 0 | 375 | $ 0 | ||
Investments in unconsolidated entities | 80,591 | 129,671 | |||
Fair Value, Recurring | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in unconsolidated entities | 80,591 | 100,840 | |||
Level 3 | Fair Value, Recurring | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in unconsolidated entities | $ 80,591 | 100,840 | |||
Principal Place | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in unconsolidated entities | 100,800 | ||||
Oaktree Adviser | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Preferred equity interest | $ 28,800 | 5,000 | |||
Proceeds from issuance of preferred units | $ 28,800 | $ 5,000 | |||
Oaktree Adviser | Ezlyn | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Sale of equity method investments, consideration transferred | $ 42,400 | ||||
Proceeds from sale of equity interest | $ 33,800 | ||||
Principal Place | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 20% | ||||
Ezlyn | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, realized gain (loss) on disposal | $ 19,500 | ||||
Ezlyn | Oaktree Adviser | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from sale of investment | $ 8,600 |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities - Summarized Financial Information of Unconsolidated Joint Venture (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Total Assets | $ 1,374,713 | $ 2,150,473 | $ 1,374,713 | ||
Total Liabilities | 943,671 | 1,181,823 | 943,671 | ||
Total Equity | 230,956 | 967,660 | 230,956 | $ 193,184 | $ 145,418 |
Total Revenues | 118,268 | 37,378 | 25,286 | ||
Total Expenses | 123,626 | 54,491 | 30,552 | ||
Net loss | (39,206) | 4,901 | $ (2,745) | ||
Principal Place | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total Assets | 1,133,943 | 1,019,861 | 1,133,943 | ||
Total Liabilities | 640,810 | 602,652 | 640,810 | ||
Total Equity | 493,133 | 417,209 | $ 493,133 | ||
Total Revenues | 5,892 | 46,146 | |||
Total Expenses | 9,286 | 51,318 | |||
Net loss | $ (3,394) | $ (5,172) |
Intangibles - Gross Carrying Am
Intangibles - Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Total intangible assets | $ 53,879 | $ 58,767 |
Accumulated amortization: | (9,184) | (9,615) |
Intangible assets, net | 44,695 | 49,152 |
Below Market Lease, Net [Abstract] | ||
Below-market lease intangibles | (28,919) | (28,521) |
Accumulated amortization | 1,444 | 137 |
Intangible liabilities, net | (27,475) | (28,384) |
In-place lease intangibles | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Total intangible assets | 33,141 | 41,210 |
Accumulated amortization: | (4,823) | (8,081) |
Lease origination costs | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Total intangible assets | 13,667 | 12,611 |
Accumulated amortization: | (2,887) | (973) |
Lease inducements | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Total intangible assets | 1,708 | 1,708 |
Accumulated amortization: | (787) | (534) |
Tax intangibles | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Total intangible assets | 5,249 | 3,054 |
Accumulated amortization: | (669) | (21) |
Above-market lease intangibles | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Total intangible assets | 114 | 184 |
Accumulated amortization: | $ (18) | $ (6) |
Intangibles - Narrative (Detail
Intangibles - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-lived intangible assets, remaining amortization period (in months) | 180 months |
Intangible liabilities, remaining amortization period (in months) | 266 months |
Intangibles - Intangible Assets
Intangibles - Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
In-place lease intangibles | |
Finite-Lived Intangible Assets [Line Items] | |
2023 | $ 2,421 |
2024 | 2,012 |
2025 | 1,852 |
2026 | 1,675 |
2027 | 1,516 |
Thereafter | 18,842 |
Total | 28,318 |
Above-market lease intangibles | |
Finite-Lived Intangible Assets [Line Items] | |
2023 | 18 |
2024 | 18 |
2025 | 18 |
2026 | 18 |
2027 | 7 |
Thereafter | 17 |
Total | 96 |
Other Intangible Assets | |
Finite-Lived Intangible Assets [Line Items] | |
2023 | 2,453 |
2024 | 2,305 |
2025 | 2,130 |
2026 | 1,848 |
2027 | 1,545 |
Thereafter | 6,000 |
Total | 16,281 |
Below-market Lease | |
Finite-Lived Intangible Assets [Line Items] | |
2023 | 1,348 |
2024 | 1,345 |
2025 | 1,340 |
2026 | 1,332 |
2027 | 1,327 |
Thereafter | 20,783 |
Total | $ 27,475 |
Investments in Real Estate-Re_3
Investments in Real Estate-Related Loans and Securities - Investment in Real Estate Loans (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Real Estate [Line Items] | ||
Carrying Amount | $ 32,760,000 | $ 35,563,000 |
Investments in real estate-related loans and securities, net | 332,654,000 | 55,074,000 |
Operating Segments | Real Estate-Related Loans and Securities | ||
Real Estate [Line Items] | ||
Investments in real estate-related loans and securities, net | 55,074,000 | |
Fair Value, Recurring | ||
Real Estate [Line Items] | ||
Investments in real estate-related securities | 299,894,000 | 19,511,000 |
Level 2 | Fair Value, Recurring | ||
Real Estate [Line Items] | ||
Investments in real estate-related securities | $ 299,894,000 | $ 19,511,000 |
Investments in Real Estate-Re_4
Investments in Real Estate-Related Loans and Securities - Real Estate Loan Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate [Line Items] | ||
Face Amount | $ 32,844,000 | $ 35,898,000 |
Unamortized Discount/Origination Fees | (84,000) | (335,000) |
Carrying Amount | $ 32,760,000 | 35,563,000 |
Basis spread on variable rate | 6.63% | |
Loans, aggregate net repayments | $ 3,100,000 | $ 5,800,000 |
London Interbank Offered Rate (LIBOR) | ||
Real Estate [Line Items] | ||
Basis spread on variable rate | 4.39% | 0.10% |
IMC/AMC Bond Investment | ||
Real Estate [Line Items] | ||
Face Amount | $ 25,000,000 | $ 25,000,000 |
Unamortized Discount/Origination Fees | (78,000) | (164,000) |
Carrying Amount | $ 24,922,000 | $ 24,836,000 |
IMC/AMC Bond Investment | London Interbank Offered Rate (LIBOR) | ||
Real Estate [Line Items] | ||
Basis spread on variable rate | 6.15% | 6.15% |
The Avery Senior Loan | ||
Real Estate [Line Items] | ||
Face Amount | $ 6,315,000 | $ 7,656,000 |
Unamortized Discount/Origination Fees | (5,000) | (65,000) |
Carrying Amount | 6,310,000 | $ 7,591,000 |
The Avery Senior Loan | London Interbank Offered Rate (LIBOR) | ||
Real Estate [Line Items] | ||
Basis spread on variable rate | 7% | |
The Avery Mezzanine Loan | ||
Real Estate [Line Items] | ||
Face Amount | 1,529,000 | $ 1,802,000 |
Unamortized Discount/Origination Fees | (1,000) | (15,000) |
Carrying Amount | $ 1,528,000 | $ 1,787,000 |
The Avery Mezzanine Loan | London Interbank Offered Rate (LIBOR) | ||
Real Estate [Line Items] | ||
Basis spread on variable rate | 7.30% | 7.30% |
Montgomery 111 | ||
Real Estate [Line Items] | ||
Face Amount | $ 1,440,000 | |
Unamortized Discount/Origination Fees | (91,000) | |
Carrying Amount | $ 1,349,000 | |
Montgomery 111 | London Interbank Offered Rate (LIBOR) | ||
Real Estate [Line Items] | ||
Basis spread on variable rate | 12.50% | 12.50% |
Investments in Real Estate-Re_5
Investments in Real Estate-Related Loans and Securities - Investments in Real Estate Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate [Line Items] | ||
Face Amount | $ 316,777 | $ 19,760 |
Cost Basis | $ 301,500 | $ 17,790 |
Basis spread on variable rate | 6.63% | |
London Interbank Offered Rate (LIBOR) | ||
Real Estate [Line Items] | ||
Basis spread on variable rate | 4.39% | 0.10% |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Real Estate [Line Items] | ||
Basis spread on variable rate | 4.30% | 0.05% |
CMBS - floating | ||
Real Estate [Line Items] | ||
Investments in real estate-related securities | $ 168,765 | $ 19,511 |
Face Amount | 177,192 | 19,760 |
Cost Basis | $ 169,014 | $ 17,790 |
CMBS - floating | London Interbank Offered Rate (LIBOR) | ||
Real Estate [Line Items] | ||
Basis spread on variable rate | 3.64% | 4% |
CMBS - fixed | ||
Real Estate [Line Items] | ||
Investments in real estate-related securities | $ 69,555 | |
Face Amount | 74,771 | |
Cost Basis | $ 69,705 | |
Basis spread on variable rate | 4.54% | |
RMBS - floating | ||
Real Estate [Line Items] | ||
Investments in real estate-related securities | $ 19,175 | |
Face Amount | 19,325 | |
Cost Basis | $ 19,048 | |
RMBS - floating | London Interbank Offered Rate (LIBOR) | ||
Real Estate [Line Items] | ||
Basis spread on variable rate | 2.46% | |
RMBS - fixed | ||
Real Estate [Line Items] | ||
Investments in real estate-related securities | $ 40,414 | |
Face Amount | 42,989 | |
Cost Basis | $ 41,658 | |
Basis spread on variable rate | 4.69% | |
Corporate bonds | ||
Real Estate [Line Items] | ||
Investments in real estate-related securities | $ 1,985 | |
Face Amount | 2,500 | |
Cost Basis | $ 2,075 | |
Basis spread on variable rate | 4.75% | |
Fair Value, Recurring | ||
Real Estate [Line Items] | ||
Investments in real estate-related securities | $ 299,894 | $ 19,511 |
Level 2 | Fair Value, Recurring | ||
Real Estate [Line Items] | ||
Investments in real estate-related securities | $ 299,894 | $ 19,511 |
Investments in Real Estate-Re_6
Investments in Real Estate-Related Loans and Securities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Unrealized gain (loss) on real estate related securities | $ (3.2) | $ 1.7 | $ 3 |
Realized gain (loss) on real estate related securities | $ 0.6 | $ 2 | $ 0.1 |
Accounts and Other Receivable_3
Accounts and Other Receivables and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Straight-line rent receivables | $ 4,132 | $ 2,253 |
Accounts receivable | 3,285 | 1,258 |
Interest receivable | 1,243 | 294 |
Allowance for doubtful accounts | (278) | (49) |
Total accounts and other receivables, net | 8,382 | 3,756 |
Trading securities | 15,918 | 0 |
Derivatives | 4,349 | 1,514 |
Prepaid expenses | 2,344 | 2,182 |
Other | 457 | 501 |
Acquisition Deposits | 120 | 6,321 |
Total other assets | $ 23,188 | $ 10,518 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Stock repurchases payable | $ 12,586 | $ 1,594 |
Accounts payable and accrued expenses | 10,901 | 6,616 |
Distribution payable | 5,250 | 2,823 |
Real estate taxes payable | 3,508 | 2,350 |
Accrued interest expense | 3,217 | 509 |
Tenant security deposits | 2,895 | 1,286 |
Prepaid rent | 1,234 | 1,045 |
Accounts payable, accrued expenses and other liabilities | $ 39,591 | $ 16,223 |
Mortgage Loans, Secured Term _3
Mortgage Loans, Secured Term Loan and Secured Credit Facility - Components of Mortgage Loans and Indebtness (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | |
Debt Instrument [Line Items] | |||||
Total indebtedness | $ 1,062,204 | $ 1,062,204 | $ 842,411 | ||
Less: deferred financing costs, net | (7,907) | (7,907) | (3,618) | ||
Total | 1,054,297 | $ 1,054,297 | $ 838,793 | ||
Basis spread on variable rate | 6.63% | ||||
Debt instrument, repaid, principal | $ 103,600 | $ 36,400 | |||
Debt instrument, basis spread on variable rate, margin | 2.25% | 2.25% | |||
Domain | |||||
Debt Instrument [Line Items] | |||||
Business combination, liabilities assumed | $ 48,700 | ||||
The Burnham | |||||
Debt Instrument [Line Items] | |||||
Business combination, liabilities assumed | 83,900 | ||||
Domain And The Burnham | |||||
Debt Instrument [Line Items] | |||||
Business combination, liabilities assumed | $ 132,600 | ||||
London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 4.39% | 0.10% | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 4.30% | 0.05% | |||
Anzio Apartments mortgage loan | |||||
Debt Instrument [Line Items] | |||||
Total indebtedness | $ 44,400 | $ 44,400 | $ 44,400 | ||
Anzio Apartments mortgage loan | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.59% | ||||
Two Liberty Center mortgage loan | |||||
Debt Instrument [Line Items] | |||||
Total indebtedness | 62,085 | $ 62,085 | 62,085 | ||
Two Liberty Center mortgage loan | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Lakes at West Covina mortgage loan | |||||
Debt Instrument [Line Items] | |||||
Total indebtedness | 25,604 | $ 25,604 | 25,604 | ||
Lakes at West Covina mortgage loan | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.55% | ||||
Arbors of Las Colinas mortgage loan | |||||
Debt Instrument [Line Items] | |||||
Total indebtedness | 45,950 | $ 45,950 | 45,950 | ||
Arbors of Las Colinas mortgage loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.24% | ||||
1110 Key Federal Hill mortgage loan | |||||
Debt Instrument [Line Items] | |||||
Total indebtedness | $ 51,520 | $ 51,520 | 51,520 | ||
Debt instrument, interest rate, stated percentage | 2.34% | 2.34% | |||
Domain mortgage loan | |||||
Debt Instrument [Line Items] | |||||
Total indebtedness | $ 48,700 | $ 48,700 | 48,700 | ||
Domain mortgage loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
DreamWorks Animation Studios mortgage loan | |||||
Debt Instrument [Line Items] | |||||
Total indebtedness | $ 212,200 | $ 212,200 | 214,750 | ||
Debt instrument, interest rate, stated percentage | 3.20% | 3.20% | |||
Briggs & Union mortgage loan | |||||
Debt Instrument [Line Items] | |||||
Total indebtedness | $ 80,000 | $ 80,000 | 0 | ||
Briggs & Union mortgage loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Secured Multifamily Term Loan | |||||
Debt Instrument [Line Items] | |||||
Total indebtedness | 372,760 | $ 372,760 | 0 | ||
Secured Multifamily Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.70% | ||||
Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Total indebtedness | 118,985 | $ 118,985 | 244,402 | ||
Secured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2% | ||||
Affiliate Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Total indebtedness | $ 0 | $ 0 | $ 105,000 | ||
Affiliate Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
If Affiliate Line of Credit Not Available | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.10% |
Mortgage Loans, Secured Term _4
Mortgage Loans, Secured Term Loan and Secured Credit Facility - Maturity of Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 0 | |
2024 | 62,405 | |
2025 | 145,242 | |
2026 | 50,075 | |
2027 | 454,258 | |
Thereafter | 350,224 | |
Total indebtedness | $ 1,062,204 | $ 842,411 |
Mortgage Loans, Secured Term _5
Mortgage Loans, Secured Term Loan and Secured Credit Facility - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Nov. 02, 2022 | Dec. 31, 2022 | Nov. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 30, 2022 | Mar. 09, 2022 | |
Debt Instrument [Line Items] | ||||||||
Borrowings from secured credit facility | $ 390,419,000 | $ 244,402,000 | $ 0 | |||||
Repayment of secured credit facility | $ 515,836,000 | 0 | $ 0 | |||||
Basis spread on variable rate | 6.63% | |||||||
Total indebtedness | $ 1,062,204,000 | $ 1,062,204,000 | $ 842,411,000 | |||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 4.30% | 0.05% | ||||||
London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 4.39% | 0.10% | ||||||
Line of Credit [Member] | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 300,000,000 | $ 250,000,000 | $ 300,000,000 | $ 500,000,000 | ||||
Potential maximum borrowing capacity | 1,200,000,000 | 1,200,000,000 | ||||||
Debt instrument, margin | 2.25% | |||||||
Line of Credit [Member] | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | $ 125,000,000 | 100,000,000 | |||||
Line of Credit [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.10% | 2% | 1.95% | |||||
Mortgage Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings from secured credit facility | 1,100,000,000 | $ 315,000,000 | ||||||
Repayment of secured credit facility | 730,600,000 | 53,000,000 | ||||||
Secured Multifamily Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Total indebtedness | $ 372,760,000 | $ 372,760,000 | 0 | |||||
Secured Multifamily Term Loan | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 372,800,000 | |||||||
Secured Multifamily Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.70% | |||||||
Secured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Total indebtedness | $ 118,985,000 | $ 118,985,000 | $ 244,402,000 | |||||
Secured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2% |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||
Jan. 18, 2022 USD ($) | Jan. 03, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 01, 2021 USD ($) shares | Nov. 30, 2021 USD ($) | Nov. 26, 2021 USD ($) | Nov. 02, 2021 USD ($) property shares | Jun. 05, 2020 USD ($) | Dec. 09, 2019 USD ($) $ / shares | Jan. 31, 2023 shares | Jun. 30, 2022 shares | Mar. 31, 2022 shares | Feb. 28, 2022 shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | |
Related Party Transaction [Line Items] | |||||||||||||||||
Management fee | $ 10,512,000 | $ 2,651,000 | $ 1,171,000 | ||||||||||||||
Due to affiliates | $ 35,890,000 | $ 35,890,000 | $ 52,294,000 | $ 35,890,000 | |||||||||||||
Stock repurchased during period (in shares) | shares | 4,888,778 | 7,491,201 | 2,587,264 | ||||||||||||||
Common stock repurchased | $ 70,284,000 | $ 76,925,000 | $ 25,855,000 | ||||||||||||||
Noninterest expense related to performance fees, percentage | 0.125 | ||||||||||||||||
Percentage of performance participation interest to annual total return held by adviser | 5% | ||||||||||||||||
Performance fee | $ 6,566,000 | 5,143,000 | 2,215,000 | ||||||||||||||
Noninterest expense related to performance fees, all other, percentage | 87.50% | ||||||||||||||||
Performance participation allocation expense | $ 0 | 2,346,000 | 0 | ||||||||||||||
Proceeds from issuance of preferred units | $ 0 | 375,000 | 0 | ||||||||||||||
Basis spread on variable rate | 6.63% | ||||||||||||||||
Proceeds from (repurchase of) equity | $ 150,000,000 | ||||||||||||||||
Offering of common stock | $ 931,638,000 | $ 144,402,000 | $ 80,970,000 | ||||||||||||||
Common stock issued (in shares) | shares | 68,341,000 | 13,104,000 | 7,879,000 | ||||||||||||||
Total | $ 8,553,000 | $ 628,000 | |||||||||||||||
London Interbank Offered Rate (LIBOR) | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Basis spread on variable rate | 4.39% | 0.10% | |||||||||||||||
Revolving Credit Facility | Line of Credit [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 125,000,000 | $ 100,000,000 | |||||||||||||||
Ezlyn | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Equity from sale of real estate | $ 33,800,000 | ||||||||||||||||
Oaktree Adviser | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Preferred equity interest, value | $ 28,800,000 | 5,000,000 | |||||||||||||||
Proceeds from issuance of preferred units | $ 28,800,000 | 5,000,000 | |||||||||||||||
Ezlyn | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Proceeds from sale of real estate | 105,000,000 | ||||||||||||||||
Gains (losses) on sales of real estate | 42,400,000 | ||||||||||||||||
Proceeds from sale of real estate, gross | $ 8,600,000 | ||||||||||||||||
Brookfield Portfolio Join Venture Acquisition | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Business acquisition, percentage of voting interests acquired | 20% | ||||||||||||||||
Business combination, consideration transferred | $ 173,200,000 | ||||||||||||||||
Brookfield Portfolio Multifamily Property Acquisition | Brookfield Portfolio Join Venture Acquisition | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of assets acquired | property | 2 | ||||||||||||||||
Brookfield Adviser | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Repurchase of equity, value | $ 50,000,000 | ||||||||||||||||
Repurchase of equity, monthly percentage cap | 0.02 | ||||||||||||||||
Repurchase of equity, quarterly percentage cap | 0.05 | ||||||||||||||||
Repurchase of equity, percentage of net proceeds | 0.25 | ||||||||||||||||
Accrued management fee | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Due to affiliates | $ 621,000 | $ 621,000 | $ 1,239,000 | $ 621,000 | |||||||||||||
Oaktree Adviser | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of management fee to NAV payable to adviser per annum, payable monthly | 1% | ||||||||||||||||
Proceeds from (repurchase of) equity | $ 86,900,000 | ||||||||||||||||
Redemption price per share (in dollars per share) | $ / shares | $ 10 | ||||||||||||||||
Treasury stock, shares, acquired (in shares) | shares | 6,186,397 | 2,521,620 | |||||||||||||||
Treasury stock, value, acquired | $ 61,900,000 | $ 25,200,000 | |||||||||||||||
Offering of common stock | $ 1,000,000,000 | ||||||||||||||||
Oaktree Adviser | Revolving Credit Facility | Line of Credit [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 125,000,000 | ||||||||||||||||
Oaktree Adviser | Revolving Credit Facility | Line of Credit [Member] | London Interbank Offered Rate (LIBOR) | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Basis spread on variable rate | 2.25% | ||||||||||||||||
Affiliated Entity | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Proceeds from sale of treasury stock | $ 25,000,000 | ||||||||||||||||
Brookfield Adviser | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Repurchase of equity, NAV threshold | $ 1,500,000,000 | ||||||||||||||||
Total | $ 10,612 | 0 | |||||||||||||||
BAM Insurance Captive | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Real estate insurance | 300,000 | 0 | |||||||||||||||
Horizon Land Services | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Title services fees | $ 400,000 | $ 100,000 | |||||||||||||||
Class D common stock | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of management fee to NAV payable to adviser per annum, payable monthly | 1.25% | ||||||||||||||||
Percentage of servicing fees payable, accrued | 0.0875 | ||||||||||||||||
Common stock issued (in shares) | shares | 36,000 | 0 | 0 | ||||||||||||||
Class C common stock | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of management fee to NAV payable to adviser per annum, payable monthly | 1.25% | ||||||||||||||||
Common stock issued (in shares) | shares | 7,974,000 | 1,644,000 | 0 | ||||||||||||||
Class I common stock | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of management fee to NAV payable to adviser per annum, payable monthly | 1.25% | ||||||||||||||||
Stock issued during period, shares, issued for services (in shares) | shares | 429,340 | 502,895 | 216,792 | 78,022 | |||||||||||||
Common stock repurchased | $ 5,100,000 | ||||||||||||||||
Stock converted during period (in shares) | shares | 191,670 | ||||||||||||||||
Common stock issued (in shares) | shares | 2,225,000 | 838,000 | |||||||||||||||
Class I common stock | Brookfield Portfolio Join Venture Acquisition | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Stock converted during period (in shares) | shares | 12,660,957 | ||||||||||||||||
Class I common stock | Oaktree Adviser | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Stock repurchased during period (in shares) | shares | 326,488 | 294,710 | |||||||||||||||
Common stock repurchased | $ 3,400,000 | ||||||||||||||||
Class I common stock | Payment of Management Fees | Subsequent Event | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Stock issued during period, shares, issued for services (in shares) | shares | 90,871 | ||||||||||||||||
Class I common stock | Payment of Performance Fees | Subsequent Event | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Stock issued during period, shares, issued for services (in shares) | shares | 481,598 | ||||||||||||||||
Common Stock Class S | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of management fee to NAV payable to adviser per annum, payable monthly | 1.25% | ||||||||||||||||
Percentage of servicing fees payable, accrued | 0.0875 | ||||||||||||||||
Common stock issued (in shares) | shares | 17,686,000 | 7,146,000 | 7,041,000 | ||||||||||||||
Class T common stock | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of management fee to NAV payable to adviser per annum, payable monthly | 1.25% | ||||||||||||||||
Percentage of servicing fees payable, accrued | 0.0875 | ||||||||||||||||
Common stock issued (in shares) | shares | 0 | 0 | 0 | ||||||||||||||
Class E common stock | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Stock issued during period, shares, issued for services (in shares) | shares | 186,362 | 49,309 | 172,098 | ||||||||||||||
Common stock issued (in shares) | shares | 1,186,000 | 2,089,000 | 0 | ||||||||||||||
Class E common stock | Brookfield Portfolio Join Venture Acquisition | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Stock repurchased during period (in shares) | shares | 12,310,303 | ||||||||||||||||
Business acquisition, equity interest issued or issuable (in shares) | shares | 2,088,833 | ||||||||||||||||
Class E common stock | Oaktree Adviser | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Stock repurchased during period (in shares) | shares | 224,798 | ||||||||||||||||
Class E common stock | Brookfield Adviser | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Offering of common stock | $ 38,000,000 | $ 45,000,000 | $ 83,000,000 | ||||||||||||||
Common stock issued (in shares) | shares | 3,075,006 | 3,756,480 | |||||||||||||||
Common Class I & E | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Common stock repurchased | $ 7,800,000 | ||||||||||||||||
OP Units | Brookfield Portfolio Join Venture Acquisition | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Business acquisition, equity interest issued or issuable (in shares) | shares | 12,380,554 |
Related Party Transactions - Ex
Related Party Transactions - Expenses From Affiliate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Total | $ 8,553 | $ 628 |
Affiliated Entity | Property Management Fees | ||
Related Party Transaction [Line Items] | ||
Total | 2,203 | 153 |
Affiliated Entity | Single-family rental leasing, maintenance and turnover oversight fees | ||
Related Party Transaction [Line Items] | ||
Total | 446 | 0 |
Affiliated Entity | Capitalized Construction Management Fees | ||
Related Party Transaction [Line Items] | ||
Total | 139 | 0 |
Affiliated Entity | Capitalized Single-Family Rental Renovation Oversight Fees | ||
Related Party Transaction [Line Items] | ||
Total | 402 | 0 |
Affiliated Entity | Reimbursed Personnel Costs | ||
Related Party Transaction [Line Items] | ||
Total | 5,363 | $ 475 |
Affiliated Entity | Reimbursed Personnel Costs | Rental Property Operating Expense | ||
Related Party Transaction [Line Items] | ||
Total | 4,800 | |
Affiliated Entity | Reimbursed Personnel Costs | General and Administrative Expense | ||
Related Party Transaction [Line Items] | ||
Total | $ 500 |
Related Party Transactions - Du
Related Party Transactions - Due to Affiliate (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 52,294 | $ 35,890 |
Accrued stockholder servicing fee | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 29,477 | 14,219 |
Advanced organization and offering costs | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 12,002 | 12,022 |
Accrued performance fee | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 6,566 | 0 |
Other | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 2,118 | 0 |
Accrued management fee | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 1,239 | 621 |
Accrued affiliate service provider expenses | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 887 | 0 |
OP Units Distributions Payable | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 5 | 0 |
Stock repurchase payable to Oaktree Adviser for management and performance fees | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 0 | 6,682 |
Accrued performance participation allocation | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 0 | $ 2,346 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) $ / shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 02, 2021 | |
Class of Stock [Line Items] | ||||
Common and Preferred Stock, Value Authorized | $ 6,000,000 | |||
Common and preferred stock, shares authorized | 1,500,000,000 | |||
Distribution reinvestment | $ 23,356 | $ 5,238 | $ 2,214 | |
Stock distribution reinvestments (in shares) | 1,713,000 | 476,000 | 216,000 | |
Preferred stock, dividend rate, per-dollar-amount | $ 1 | |||
Preferred stock, dividend rate, percentage | 12.50% | |||
Preferred stock, value, outstanding | $ 375 | |||
Percentage of repurchase on NAV per month | 2% | |||
Percentage of repurchase on NAV per quarter | 5% | |||
Repurchase of shares outstanding less than one year to transaction price, percentage | 98% | |||
Stock repurchased during period (in shares) | (4,888,778) | (7,491,201) | (2,587,264) | |
Common stock repurchased | $ (70,284) | $ (76,925) | $ (25,855) | |
Cash Distribution | ||||
Class of Stock [Line Items] | ||||
Distribution reinvestment | $ 23,400 | $ 5,200 | ||
Stock distribution reinvestments (in shares) | 1,713,257 | 215,561 | ||
Oaktree Fund GP I, L.P | ||||
Class of Stock [Line Items] | ||||
Stock repurchased during period (in shares) | (6,186,397) | (2,521,620) | ||
Common stock repurchased | $ (61,900) | $ (25,200) |
Stockholder's Equity - Stock by
Stockholder's Equity - Stock by Class (Details) | Dec. 31, 2022 $ / shares shares |
Class of Stock [Line Items] | |
Preferred stock, par value (in dollars per share) | $ 0.01 |
Common stock, par value (in dollars per share) | $ 0.01 |
Common and preferred stock, shares authorized | shares | 1,050,000,000 |
Preferred stock | |
Class of Stock [Line Items] | |
Preferred stock, shares authorized (in shares) | shares | 50,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 |
Class T common stock | |
Class of Stock [Line Items] | |
Common stock, shares authorized (in shares) | shares | 225,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 |
Common Stock Class S | |
Class of Stock [Line Items] | |
Common stock, shares authorized (in shares) | shares | 225,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 |
Class D common stock | |
Class of Stock [Line Items] | |
Common stock, shares authorized (in shares) | shares | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 |
Class C common stock | |
Class of Stock [Line Items] | |
Common stock, shares authorized (in shares) | shares | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0 |
Class E common stock | |
Class of Stock [Line Items] | |
Common stock, shares authorized (in shares) | shares | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0 |
Class I common stock | |
Class of Stock [Line Items] | |
Common stock, shares authorized (in shares) | shares | 250,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 |
Stockholder's Equity - Outstand
Stockholder's Equity - Outstanding Stock Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Outstanding Stock [Roll Forward] | |||
Common stock, shares outstanding, beginning balance (in shares) | 26,612,000 | 20,510,000 | 14,997,000 |
Common stock issued (in shares) | 68,341,000 | 13,104,000 | 7,879,000 |
Stock distribution reinvestments (in shares) | 1,713,000 | 476,000 | 216,000 |
Stock Redemption (in shares) | (4,977,000) | (7,491,000) | (2,588,000) |
Common stock, shares outstanding, ending balance (in shares) | 91,689,000 | 26,612,000 | 20,510,000 |
Restricted Stock | |||
Outstanding Stock [Roll Forward] | |||
Independent directors' restricted stock vested (in shares) | 13,000 | 6,000 | |
Portion of the annual compensation paid to independent directors | $ 0.3 | $ 0.1 | $ 0.1 |
Common Stock Class S | |||
Outstanding Stock [Roll Forward] | |||
Common stock, shares outstanding, beginning balance (in shares) | 20,046,000 | 13,033,000 | 5,852,000 |
Common stock issued (in shares) | 17,686,000 | 7,146,000 | 7,041,000 |
Stock distribution reinvestments (in shares) | 793,000 | 432,000 | 206,000 |
Stock Redemption (in shares) | (1,821,000) | (565,000) | (66,000) |
Common stock, shares outstanding, ending balance (in shares) | 36,704,000 | 20,046,000 | 13,033,000 |
Common Stock Class S | Restricted Stock | |||
Outstanding Stock [Roll Forward] | |||
Independent directors' restricted stock vested (in shares) | 0 | 0 | |
Class I common stock | |||
Outstanding Stock [Roll Forward] | |||
Common stock, shares outstanding, beginning balance (in shares) | 2,825,000 | 7,478,000 | 9,146,000 |
Common stock issued (in shares) | 2,225,000 | 838,000 | |
Stock distribution reinvestments (in shares) | 769,000 | 35,000 | 10,000 |
Stock Redemption (in shares) | (2,656,000) | (6,926,000) | (2,522,000) |
Common stock, shares outstanding, ending balance (in shares) | 42,397,000 | 2,825,000 | 7,478,000 |
Class I common stock | Restricted Stock | |||
Outstanding Stock [Roll Forward] | |||
Independent directors' restricted stock vested (in shares) | 13,000 | 6,000 | |
Class D common stock | |||
Outstanding Stock [Roll Forward] | |||
Common stock, shares outstanding, beginning balance (in shares) | 0 | 0 | 0 |
Common stock issued (in shares) | 36,000 | 0 | 0 |
Stock distribution reinvestments (in shares) | 0 | 0 | 0 |
Stock Redemption (in shares) | 0 | 0 | 0 |
Common stock, shares outstanding, ending balance (in shares) | 36,000 | 0 | 0 |
Class D common stock | Restricted Stock | |||
Outstanding Stock [Roll Forward] | |||
Independent directors' restricted stock vested (in shares) | 0 | 0 | |
Class T common stock | |||
Outstanding Stock [Roll Forward] | |||
Common stock, shares outstanding, beginning balance (in shares) | 0 | 0 | 0 |
Common stock issued (in shares) | 0 | 0 | 0 |
Stock distribution reinvestments (in shares) | 0 | 0 | 0 |
Stock Redemption (in shares) | 0 | 0 | 0 |
Common stock, shares outstanding, ending balance (in shares) | 0 | 0 | 0 |
Class T common stock | Restricted Stock | |||
Outstanding Stock [Roll Forward] | |||
Independent directors' restricted stock vested (in shares) | 0 | 0 | |
Class C common stock | |||
Outstanding Stock [Roll Forward] | |||
Common stock, shares outstanding, beginning balance (in shares) | 1,644,000 | 0 | 0 |
Common stock issued (in shares) | 7,974,000 | 1,644,000 | 0 |
Stock distribution reinvestments (in shares) | 0 | 0 | 0 |
Stock Redemption (in shares) | (275,000) | 0 | 0 |
Common stock, shares outstanding, ending balance (in shares) | 9,343,000 | 1,644,000 | 0 |
Class C common stock | Restricted Stock | |||
Outstanding Stock [Roll Forward] | |||
Independent directors' restricted stock vested (in shares) | 0 | 0 | |
Class E common stock | |||
Outstanding Stock [Roll Forward] | |||
Common stock, shares outstanding, beginning balance (in shares) | 2,098,000 | 0 | 0 |
Common stock issued (in shares) | 1,186,000 | 2,089,000 | 0 |
Stock distribution reinvestments (in shares) | 151,000 | 9,000 | 0 |
Stock Redemption (in shares) | (225,000) | 0 | 0 |
Common stock, shares outstanding, ending balance (in shares) | 3,210,000 | 2,098,000 | 0 |
Class E common stock | Restricted Stock | |||
Outstanding Stock [Roll Forward] | |||
Independent directors' restricted stock vested (in shares) | 0 | 0 |
Stockholder's Equity - Dividend
Stockholder's Equity - Dividends (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common Stock Class S | |||
Class of Stock [Line Items] | |||
Aggregate gross distributions declared per share of common stock | $ 0.8715 | $ 0.5389 | $ 0.4323 |
Stockholder servicing fee per share of common stock | (0.1100) | (0.0926) | (0.0874) |
Management fee per share of common stock | (0.1681) | ||
Net distributions declared per share of common stock | 0.5934 | 0.4463 | 0.3449 |
Class I common stock | |||
Class of Stock [Line Items] | |||
Aggregate gross distributions declared per share of common stock | 0.8715 | 0.5389 | 0.4323 |
Stockholder servicing fee per share of common stock | 0 | 0 | 0 |
Management fee per share of common stock | (0.1689) | ||
Net distributions declared per share of common stock | 0.7026 | 0.5389 | 0.4323 |
Class T common stock | |||
Class of Stock [Line Items] | |||
Aggregate gross distributions declared per share of common stock | 0 | 0 | 0 |
Stockholder servicing fee per share of common stock | 0 | 0 | 0 |
Management fee per share of common stock | 0 | ||
Net distributions declared per share of common stock | 0 | 0 | 0 |
Class D common stock | |||
Class of Stock [Line Items] | |||
Aggregate gross distributions declared per share of common stock | 0.5199 | 0 | 0 |
Stockholder servicing fee per share of common stock | (0.0200) | 0 | 0 |
Management fee per share of common stock | (0.1005) | ||
Net distributions declared per share of common stock | 0.3994 | 0 | $ 0 |
Class C common stock | |||
Class of Stock [Line Items] | |||
Aggregate gross distributions declared per share of common stock | 0.8715 | 0.4549 | |
Stockholder servicing fee per share of common stock | 0 | 0 | |
Management fee per share of common stock | (0.1661) | ||
Net distributions declared per share of common stock | 0.7054 | 0.4549 | |
Class E common stock | |||
Class of Stock [Line Items] | |||
Aggregate gross distributions declared per share of common stock | 0.8715 | 0.1063 | |
Stockholder servicing fee per share of common stock | 0 | 0 | |
Management fee per share of common stock | 0 | ||
Net distributions declared per share of common stock | $ 0.8715 | $ 0.1063 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Redeemable Noncontrolling Interest [Roll Forward] | ||
Balance at beginning of the year | $ 200,086 | $ 0 |
Limited Partner Asset Contributions | 0 | 148,175 |
Limited Partner Cash Contributions | 38,000 | 45,000 |
Settlement of prior year performance participation allocation | 2,346 | |
Conversion to Class I shares | 284,785 | |
GAAP Income Allocation | 4,669 | 2,578 |
Distributions | (6,951) | (1,521) |
Distributions Reinvested | 7,819 | 649 |
Fair Value Allocation | 49,144 | 5,205 |
Balance at the end of the year | $ 990 | $ 200,086 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Fixed lease payments | $ 102,890 | ||
Variable lease payments | 5,762 | ||
Total rental revenues | $ 108,652 | $ 34,787 | $ 24,145 |
Leases - Undiscounted Future Mi
Leases - Undiscounted Future Minimum Rents (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 32,308 |
2024 | 29,337 |
2025 | 28,211 |
2026 | 25,394 |
2027 | 23,102 |
Thereafter | 143,114 |
Total | $ 281,466 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) reportableSegment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | reportableSegment | 6 | ||
Segment Reporting Information [Line Items] | |||
Number of reportable segments | reportableSegment | 6 | ||
Total assets | $ 2,150,473 | $ 1,374,713 | |
Rental revenues | 108,652 | 34,787 | $ 24,145 |
Other revenues | 9,616 | 2,591 | 1,141 |
Total revenues | 118,268 | 37,378 | 25,286 |
Rental property operating | 41,302 | 15,465 | 10,211 |
Income from real estate-related loans and securities | 11,322 | 5,442 | 4,908 |
Segment net operating income | 88,288 | 27,355 | 19,983 |
Realized gain on real estate investments, net | 726 | 21,493 | 144 |
Realized gain on financial instruments | 10,572 | 0 | 0 |
Unrealized (loss) gain on investments, net | (16,750) | 1,837 | 2,417 |
Depreciation and amortization | 55,684 | 18,370 | 13,481 |
General and administrative | 9,562 | 7,057 | 3,474 |
Organizational costs | 3,459 | ||
Management fee | 10,512 | 2,651 | 1,171 |
Performance fee | 6,566 | 5,143 | 2,215 |
Performance Participation Allocation | 0 | 2,346 | 0 |
Interest expense | 39,718 | 6,758 | 4,948 |
Net loss | (39,206) | 4,901 | (2,745) |
Net loss attributable to non-controlling interests in third party joint ventures | 148 | 183 | 307 |
Net income attributable to non-controlling interests - preferred stockholders | 24 | 0 | 0 |
Net loss attributable to redeemable non-controlling interests | 4,669 | (2,578) | 0 |
Net loss attributable to stockholders | (34,413) | 2,506 | (2,438) |
Multifamily | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 944,453 | 583,308 | |
Rental revenues | 65,302 | 21,180 | 11,682 |
Other revenues | 8,684 | 1,983 | 496 |
Total revenues | 73,986 | 23,163 | 12,178 |
Rental property operating | 28,752 | 9,707 | 4,859 |
Income from real estate-related loans and securities | 0 | 0 | 0 |
Segment net operating income | 45,234 | 13,456 | 7,319 |
Office | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 124,001 | 126,966 | |
Rental revenues | 12,844 | 12,471 | 12,463 |
Other revenues | 658 | 608 | 645 |
Total revenues | 13,502 | 13,079 | 13,108 |
Rental property operating | 5,917 | 5,495 | 5,352 |
Income from real estate-related loans and securities | 0 | 0 | 0 |
Segment net operating income | 7,585 | 7,584 | 7,756 |
Logistics | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 112,019 | 74,039 | |
Rental revenues | 6,632 | 419 | |
Other revenues | 0 | 0 | |
Total revenues | 6,632 | 419 | |
Rental property operating | 1,978 | 148 | |
Income from real estate-related loans and securities | 0 | 0 | |
Segment net operating income | 4,654 | 271 | |
Single-Family Rental | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 142,461 | 5,011 | |
Rental revenues | 4,503 | 0 | |
Other revenues | 274 | 0 | |
Total revenues | 4,777 | 0 | |
Rental property operating | 2,312 | 5 | |
Income from real estate-related loans and securities | 0 | 0 | |
Segment net operating income | 2,465 | (5) | |
Net Lease | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 426,789 | 457,456 | |
Rental revenues | 19,371 | 717 | |
Other revenues | 0 | 0 | |
Total revenues | 19,371 | 717 | |
Rental property operating | 2,343 | 110 | |
Income from real estate-related loans and securities | 0 | 0 | |
Segment net operating income | 17,028 | 607 | |
Real Estate-Related Loans and Securities | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 332,654 | 55,074 | |
Rental revenues | 0 | 0 | 0 |
Other revenues | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 |
Rental property operating | 0 | 0 | 0 |
Income from real estate-related loans and securities | 11,322 | 5,442 | 4,908 |
Segment net operating income | 11,322 | 5,442 | $ 4,908 |
Other (Corporate) | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 68,096 | $ 72,859 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 12 Months Ended | ||
Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 6.63% | ||
Interest Rate Swaps | |||
Subsequent Event [Line Items] | |||
Notional Amount | $ 33,800,000 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 4.30% | 0.05% | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Secured Multifamily Term Loan | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 1.70% | ||
Subsequent Event | Interest Rate Swaps | Secured Multifamily Term Loan | |||
Subsequent Event [Line Items] | |||
Notional Amount | $ 250,000,000 | ||
Subsequent Event | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 2.65% |
Schedule III_Real Estate and _2
Schedule III—Real Estate and Accumulated Depreciation (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | $ 1,062,204,000 | ||
Initial Cost of Land and Land Improvements | 259,221,000 | ||
Initial Cost of Building and Building Improvements | 1,343,697,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 2,266,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 11,908,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 261,487,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 1,355,605,000 | ||
Total | 1,617,092,000 | $ 1,075,445,000 | $ 325,094,000 |
Accumulated Depreciation | (57,837,000) | (19,373,000) | $ (11,590,000) |
Total indebtedness | 1,062,204,000 | 842,411,000 | |
Secured Credit Facility | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Total indebtedness | 118,985,000 | 244,402,000 | |
Secured Multifamily Term Loan | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Total indebtedness | 372,760,000 | $ 0 | |
Furniture, fixtures and equipment | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Total | 26,000,000 | ||
Accumulated Depreciation | (4,300,000) | ||
Multifamily properties: | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 643,330,000 | ||
Initial Cost of Land and Land Improvements | 126,404,000 | ||
Initial Cost of Building and Building Improvements | 798,909,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 1,835,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 1,132,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 128,239,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 800,041,000 | ||
Total | 928,280,000 | ||
Accumulated Depreciation | (30,171,000) | ||
Multifamily properties: | Atlanta, GA | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 44,400,000 | ||
Initial Cost of Land and Land Improvements | 9,837,000 | ||
Initial Cost of Building and Building Improvements | 47,058,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 1,092,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 68,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 10,929,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 47,126,000 | ||
Total | 58,055,000 | ||
Accumulated Depreciation | (8,160,000) | ||
Multifamily properties: | Dallas, TX | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 45,950,000 | ||
Initial Cost of Land and Land Improvements | 18,155,000 | ||
Initial Cost of Building and Building Improvements | 43,492,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 536,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 73,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 18,691,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 43,565,000 | ||
Total | 62,256,000 | ||
Accumulated Depreciation | (3,545,000) | ||
Multifamily properties: | Baltimore, MD | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 51,520,000 | ||
Initial Cost of Land and Land Improvements | 10,310,000 | ||
Initial Cost of Building and Building Improvements | 61,908,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 5,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 168,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 10,315,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 62,076,000 | ||
Total | 72,391,000 | ||
Accumulated Depreciation | (2,135,000) | ||
Multifamily properties: | Orlando, FL | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 48,700,000 | ||
Initial Cost of Land and Land Improvements | 10,503,000 | ||
Initial Cost of Building and Building Improvements | 61,703,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 40,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 95,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 10,543,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 61,798,000 | ||
Total | 72,341,000 | ||
Accumulated Depreciation | (2,011,000) | ||
Multifamily properties: | Nashville, TN | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 114,000,000 | ||
Initial Cost of Land and Land Improvements | 14,145,000 | ||
Initial Cost of Building and Building Improvements | 111,469,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 33,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 218,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 14,178,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 111,687,000 | ||
Total | 125,865,000 | ||
Accumulated Depreciation | (3,278,000) | ||
Multifamily properties: | Wilmington , NC | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 64,000,000 | ||
Initial Cost of Land and Land Improvements | 6,528,000 | ||
Initial Cost of Building and Building Improvements | 88,877,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 19,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 97,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 6,547,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 88,974,000 | ||
Total | 95,521,000 | ||
Accumulated Depreciation | (2,382,000) | ||
Multifamily properties: | Beaverton, OR | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 49,000,000 | ||
Initial Cost of Land and Land Improvements | 8,100,000 | ||
Initial Cost of Building and Building Improvements | 61,139,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 16,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 10,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 8,116,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 61,149,000 | ||
Total | 69,265,000 | ||
Accumulated Depreciation | (1,628,000) | ||
Multifamily properties: | Pittsburgh, PA | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 60,760,000 | ||
Initial Cost of Land and Land Improvements | 11,064,000 | ||
Initial Cost of Building and Building Improvements | 77,270,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 4,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 136,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 11,068,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 77,406,000 | ||
Total | 88,474,000 | ||
Accumulated Depreciation | (1,949,000) | ||
Multifamily properties: | Alexandria, VA | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 85,000,000 | ||
Initial Cost of Land and Land Improvements | 18,775,000 | ||
Initial Cost of Building and Building Improvements | 114,441,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 14,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 243,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 18,789,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 114,684,000 | ||
Total | 133,473,000 | ||
Accumulated Depreciation | (2,425,000) | ||
Multifamily properties: | Mount Laurel, NJ | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 80,000,000 | ||
Initial Cost of Land and Land Improvements | 18,987,000 | ||
Initial Cost of Building and Building Improvements | 131,552,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 76,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 24,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 19,063,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 131,576,000 | ||
Total | 150,639,000 | ||
Accumulated Depreciation | (2,658,000) | ||
Logistics properties: | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 36,977,000 | ||
Initial Cost of Land and Land Improvements | 26,314,000 | ||
Initial Cost of Building and Building Improvements | 79,559,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 0 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 406,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 26,314,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 79,965,000 | ||
Total | 106,279,000 | ||
Accumulated Depreciation | (3,371,000) | ||
Logistics properties: | Morton Grove, IL | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 11,685,000 | ||
Initial Cost of Land and Land Improvements | 5,625,000 | ||
Initial Cost of Building and Building Improvements | 9,703,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 0 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 370,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 5,625,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 10,073,000 | ||
Total | 15,698,000 | ||
Accumulated Depreciation | (532,000) | ||
Logistics properties: | Upper Marlboro, MD | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Cost of Land and Land Improvements | 11,676,000 | ||
Initial Cost of Building and Building Improvements | 17,161,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 0 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 0 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 11,676,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 17,161,000 | ||
Total | 28,837,000 | ||
Accumulated Depreciation | (903,000) | ||
Logistics properties: | Lakeland, FL | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Cost of Land and Land Improvements | 3,217,000 | ||
Initial Cost of Building and Building Improvements | 22,039,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 0 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 0 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 3,217,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 22,039,000 | ||
Total | 25,256,000 | ||
Accumulated Depreciation | (1,038,000) | ||
Logistics properties: | Landover, MD | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 6,295,000 | ||
Initial Cost of Land and Land Improvements | 1,591,000 | ||
Initial Cost of Building and Building Improvements | 7,708,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 0 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 36,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 1,591,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 7,744,000 | ||
Total | 9,335,000 | ||
Accumulated Depreciation | (234,000) | ||
Logistics properties: | Franklin, IN | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 18,997,000 | ||
Initial Cost of Land and Land Improvements | 4,205,000 | ||
Initial Cost of Building and Building Improvements | 22,948,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 0 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 0 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 4,205,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 22,948,000 | ||
Total | 27,153,000 | ||
Accumulated Depreciation | (664,000) | ||
Office properties: | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 87,689,000 | ||
Initial Cost of Land and Land Improvements | 7,490,000 | ||
Initial Cost of Building and Building Improvements | 113,769,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 0 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 1,817,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 7,490,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 115,586,000 | ||
Total | 123,076,000 | ||
Accumulated Depreciation | (14,176,000) | ||
Office properties: | Arlington, VA | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 62,085,000 | ||
Initial Cost of Land and Land Improvements | 3,075,000 | ||
Initial Cost of Building and Building Improvements | 83,132,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 0 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 392,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 3,075,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 83,524,000 | ||
Total | 86,599,000 | ||
Accumulated Depreciation | (8,874,000) | ||
Office properties: | Los Angeles, CA | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 25,604,000 | ||
Initial Cost of Land and Land Improvements | 4,415,000 | ||
Initial Cost of Building and Building Improvements | 30,637,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 0 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 1,425,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 4,415,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 32,062,000 | ||
Total | 36,477,000 | ||
Accumulated Depreciation | (5,302,000) | ||
Net Lease properties: | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 212,200,000 | ||
Initial Cost of Land and Land Improvements | 74,803,000 | ||
Initial Cost of Building and Building Improvements | 247,835,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 0 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 187,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 74,803,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 248,022,000 | ||
Total | 322,825,000 | ||
Accumulated Depreciation | (8,039,000) | ||
Net Lease properties: | Glendale, CA | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 212,200,000 | ||
Initial Cost of Land and Land Improvements | 74,803,000 | ||
Initial Cost of Building and Building Improvements | 247,835,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 0 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 187,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 74,803,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 248,022,000 | ||
Total | 322,825,000 | ||
Accumulated Depreciation | (8,039,000) | ||
Single Family Rental Portfolio | Various | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 82,008,000 | ||
Initial Cost of Land and Land Improvements | 24,210,000 | ||
Initial Cost of Building and Building Improvements | 103,625,000 | ||
Costs Capitalized Subsequent to Acquisition, Land and Land Improvements | 431,000 | ||
Cost Capitalized Subsequent to Acquisition, Building and Building Improvements | 8,366,000 | ||
Gross Amounts at which Carried at the Close of Period, Land and Land Improvements | 24,641,000 | ||
Gross Amounts at which Carried at the Close of Period, Building and Building Improvements | 111,991,000 | ||
Total | 136,632,000 | ||
Accumulated Depreciation | $ (2,080,000) |
Schedule III_Real Estate and _3
Schedule III—Real Estate and Accumulated Depreciation Rollforward (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | ||
Balance at the beginning of the year | $ 1,075,445,000 | $ 325,094,000 |
Balance at the end of the year | 1,617,092,000 | 1,075,445,000 |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||
Balance at the beginning of the year | (19,373,000) | (11,590,000) |
Depreciation expense | (39,050,000) | (12,406,000) |
Dispositions | 586,000 | 4,623,000 |
Balance at the end of the year | (57,837,000) | (19,373,000) |
Land and land improvements | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | ||
Additions during the year: | 84,073,000 | 145,607,000 |
Dispositions during the year: | 0 | (12,503,000) |
Building and building improvements | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | ||
Additions during the year: | 458,249,000 | 684,636,000 |
Dispositions during the year: | $ (675,000) | $ (67,389,000) |