v3.25.1
LOANS HELD FOR INVESTMENT AT CARRYING VALUE
 3 Months Ended
Mar. 31, 2025
LOANS HELD FOR INVESTMENT AT CARRYING VALUE [Abstract]  
LOANS HELD FOR INVESTMENT AT CARRYING VALUE LOANS HELD FOR INVESTMENT AT CARRYING VALUE
As of March 31, 2025 and December 31, 2024, the Company’s portfolio included twelve and nine loans held at carrying value, respectively. The aggregate originated commitment under these loans was approximately $352.1 million and $190.9 million, respectively, and outstanding principal was approximately $233.4 million and $132.6 million, respectively, as of March 31, 2025 and December 31, 2024. During the three months ended March 31, 2025, the Company funded approximately $109.8 million of new loans and additional principal on existing loans and had approximately $9.0 million of principal repayments of loans held at carrying value. As of March 31, 2025 and December 31, 2024, approximately 89% and 79%, respectively, of the Company’s loans held at carrying value had floating interest rates. As of March 31, 2025, these floating benchmark rates included one-month Secured Overnight Financing Rate (“SOFR”) quoted at 4.3% and subject to a weighted average floor of 4.1% based on outstanding principal.
The following tables summarizes the Company’s loans held at carrying value as of March 31, 2025 and December 31, 2024:
As of March 31, 2025
Outstanding
Principal(1)
Original
Issue
Discount
Carrying
Value(1)
Weighted
Average
Remaining Life
(Years)(2)
Senior mortgage loans(3)(4)
$202,709,486 $(2,647,593)$200,061,893 2.5
Subordinate debt30,671,220 (238,922)30,432,298 2.4
Total loans held at carrying value$233,380,706 $(2,886,515)$230,494,191 2.5
As of December 31, 2024
Outstanding
Principal(1)
Original
Issue
Discount
Carrying
Value(1)
Weighted
Average
Remaining Life
(Years)(2)
Senior mortgage loans(3)
$109,300,553 $(1,495,512)$107,805,041 2.6
Subordinate debt23,255,736 (327,147)22,928,589 2.4
Total loans held at carrying value$132,556,289 $(1,822,659)$130,733,630 2.6
(1)The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted OID and loan origination costs.
(2)Weighted average remaining life is calculated based on the carrying value of each respective group of loans as of March 31, 2025 and December 31, 2024.
(3)Senior mortgage loans include senior loans that also have a contiguous subordinate loan because as a whole, the expected credit quality of the subordinate loan is more similar to that of a senior loan.
(4)If the Company holds both the A-note and B-note, the loan is categorized as a senior mortgage loan.
The following table presents changes in loans held at carrying value as of and for the three months ended March 31, 2025:
Principal Original Issue
Discount 		Carrying Value
Total loans held at carrying value at December 31, 2024$132,556,289 $(1,822,659)$130,733,630 
New fundings106,100,104 (1,356,528)104,743,576 
Interest drawn on loans3,740,082 — 3,740,082 
Accretion of original issue discount— 292,672 292,672 
Loan repayments(9,015,769)— (9,015,769)
Total loans held at carrying value at March 31, 2025$233,380,706 $(2,886,515)$230,494,191 
A more detailed listing of the Company’s loans held at carrying value portfolio based on information available as of March 31, 2025 is as follows:
Loan TypeLocation
Outstanding
Principal(1)
Original
Issue
Discount
Carrying
Value(1)
Interest
Rate
Maturity
Date(2)
Payment
Terms(3)
Senior mortgage loans:
ResidentialAustin, TX$13,818,709 $(105,655)$13,713,054 9.0 %
(4)
7/3/2027I/O
HospitalitySan Antonio, TX26,793,821 (212,333)26,581,488 10.9 %
(5)
8/9/2027I/O
ResidentialPBG, FL28,614,957 (309,896)28,305,061 12.6 %
(6)
9/1/2027I/O
ResidentialPBG, FL24,321,302 (273,438)24,047,864 10.6 %
(7)
9/1/2027I/O
ResidentialFort Lauderdale, FL4,964,427 (242,308)4,722,119 11.4 %
(8)
12/30/2026I/O
HospitalityAustin, TX30,635,540 (355,556)30,279,984 9.8 %
(9)
12/11/2027I/O
ResidentialAventura, FL28,711,352 (280,769)28,430,583 9.3 %
(10)
1/27/2027I/O
Net Leased TenantNew Orleans, LA599,378 (415,556)183,822 10.1 %
(11)
1/30/2028I/O
ResidentialDallas, TX44,250,000 (452,083)43,797,917 8.0 %
(12)
3/14/2028I/O
Subordinate debt:
ResidentialSarasota, FL23,891,764 (183,227)23,708,537 13.0 %
(13)
5/12/2027I/O
ResidentialMiami, FL2,246,271 (111,944)2,134,327 13.3 %
(14)
11/15/2027I/O
ResidentialMiami, FL4,533,185 56,250 4,589,435 14.8 %
(15)
12/13/2028I/O
Total loans held at carrying value$233,380,706 $(2,886,515)$230,494,191 
(1)The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted OID and loan origination costs.
(2)Certain loans are subject to contractual extension options and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications.
(3)I/O = interest-only, P/I = principal and interest. P/I loans may include interest-only periods for a portion of the loan term.
(4)Base interest rate of 4.25% plus SOFR (SOFR floor of 4.75%).
(5)Base interest rate of 6.35% plus SOFR (SOFR floor of 4.50%).
(6)Base interest rate of 8.25% plus SOFR (SOFR floor of 4.00%).
(7)Base interest rate of 6.25% plus SOFR (SOFR floor of 4.00%).
(8)Cash interest rate represents a blended rate of differing cash interest rates applicable to each of the A-Notes and B-Notes to which the Company is a lender under the credit agreements. The A-Notes bear interest at a base interest rate of 4.75% plus SOFR (SOFR floor of 4.75%) and the B-Notes bear interest at a base interest rate of 11.00% plus SOFR (SOFR floor of 4.75%).
(9)Base interest rate of 5.50% plus SOFR (SOFR floor of 4.00%).
(10)Base interest rate of 5.00% plus SOFR (SOFR floor of 4.00%).
(11)Base interest rate of 5.60% plus SOFR (SOFR floor of 4.50%).
(12)Base interest rate of 3.65% plus SOFR (SOFR floor of 3.90%).
(13)Base interest rate of 13.00%.
(14)Base interest rate of 13.25%.
(15)Base interest rate of 9.50% plus SOFR (SOFR floor of 4.00%) and PIK interest rate of 1.00%.