v3.25.1
FAIR VALUE MEASUREMENT
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT FAIR VALUE MEASUREMENT
 
The following table presents information about our financial instruments measured at fair value on a recurring basis at March 31, 2025 and December 31, 2024. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, we classify assets and liabilities based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.
 
Disclosures concerning financial instruments measured at fair value are as follows (in thousands):
 
Fair Value Measurements at March 31, 2025 using
Level 1Level 2Level 3Total
Assets:
Interest rate swaps$— $7,906 $— $7,906 
Onera Purchase Option— — 931 931 
 
Fair Value Measurements at December 31, 2024 using
Level 1Level 2Level 3Total
Assets:
Interest rate swaps$— $11,573 $— $11,573 
Onera Purchase Option— — 931 931 

The Onera Purchase Option does not have a readily determinable fair value. The fair value was estimated using the Black-Scholes model and was based on unobservable inputs for which there is little or no market information available. As such, we were required to develop assumptions to estimate the fair value of the Onera Purchase Option as follows (dollars in thousands):
Exercise price$8,206 
First option exercise date (1)
10/1/2024
Expected volatility52.20 %
Risk free rate4.15 %
Expected annualized equity dividend yield— %
(1)The first option exercise date is the date used for estimating the fair value of the purchase option. The Onera Purchase Option became exercisable in September 2024 when construction of the lodging development was complete, and the property was open for business.