Quarterly report pursuant to Section 13 or 15(d)

Variable Interest Entities

v3.23.2
Variable Interest Entities
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities Variable Interest Entities
The Company consolidates two joint venture (“JV”) VIEs. The consolidated VIEs include one active project in the Metro New York area (“14th Ave JV”) and one JV with the purpose of acquiring undeveloped land (the “LCF JV”). The Company has determined that it is the primary beneficiary of these VIEs as it has the power to direct activities of the operations that most significantly affect their economic performance.

Both consolidated VIEs are financed by equity contributions from the Company and the JV partner. The 14th Ave JV was also funded by third-party debt which was paid off in April 2022 with proceeds from a loan provided by the Company. The intercompany loan is eliminated upon consolidation.

The following table summarizes the carrying amount and classification of the VIEs’ assets and liabilities in the consolidated balances sheets as of June 30, 2023 and December 31, 2022.

June 30, 2023 December 31, 2022
(dollars in thousands)
Cash $ 8,687  $ 4,697 
Real estate inventories 93,832  99,699 
Due from affiliates 283  329 
Other assets 2,109  2,124 
Total assets $ 104,911  $ 106,849 
 
Accounts payable $ 710  $ 1,577 
Accrued expenses and other liabilities 5,068  5,616 
Total liabilities $ 5,778  $ 7,193