v3.25.2
Loans Held for Investment (Tables)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Schedule of Company's Portfolio
The table below provides a summary of the Company’s loan portfolio. Carrying value represents the amortized cost of loan, net of applicable allowance for credit losses.
June 30, 2025December 31, 2024
Fixed Rate
Floating
Rate (1)(2)
TotalFixed Rate
Floating
Rate (1)(2)
Total
Number of loans123123
Principal balance$2,958,384 $44,716,617 $47,675,001 $2,843,280 $43,059,173 $45,902,453 
Carrying value$2,623,384 $27,930,975 $30,554,359 $2,573,280 $27,814,616 $30,387,896 
Fair value$2,623,384 $27,927,727 $30,551,111 $2,573,280 $28,068,902 $30,642,182 
Weighted-average coupon rate(3)
—%19.32%19.32%—%19.53%19.53%
Weighted-average remaining
   term (years) (3) (4)
0.000.000.000.000.100.10
_______________
(1)As of June 30, 2025 and December 31, 2024, these loans pay a coupon rate of Secured Overnight Financing Rate (“SOFR”) or forward-looking term rate based on SOFR (“Term SOFR”), as applicable, plus a fixed spread. Coupon rates shown were determined using average SOFR and Term SOFR of 4.32% and 4.32%, respectively, as of June 30, 2025, and 4.53% and 4.33%, respectively, as of December 31, 2024.
(2)As of both June 30, 2025 and December 31, 2024, two loans were subject to a SOFR or Term SOFR floor, as applicable.
(3)Excludes non-performing loans for which recovery of interest income was not probable.
(4)Excludes loans that are in maturity default and represents current effective maturity as of June 30, 2025 and December 31, 2024, exclusive of any extension options available.
Schedule of Accounts, Notes, Loans and Financing Receivable
The following tables present the activities of the Company’s loan portfolio:
Loans Held for Investment, NetLoans Held for Investment through Participation Interests, NetTotal
Balance, January 1, 2025
$18,575,895 $11,812,001 $30,387,896 
Origination, funding and purchase of loans1,657,444 115,104 1,772,548 
Principal repayments received— — — 
Net amortization of premiums on loans(8,605)— (8,605)
Accrual, payment and accretion of investment-related fees and other,
   net		22,803 — 22,803 
Reversal of (provision for) credit losses179,450 (1,799,733)(1,620,283)
Balance, June 30, 2025
$20,426,987 $10,127,372 $30,554,359 
Loans Held for Investment, NetLoans Held for Investment through Participation Interests, NetTotal
Balance, January 1, 2024$60,458,534 $17,884,930 $78,343,464 
Origination, funding and purchase of loans843,996 45,851 889,847 
Principal repayments received(39,941,496)— (39,941,496)
Net amortization of premiums on loans(129,883)— (129,883)
Accrual, payment and accretion of investment-related fees and other,
   net		20,488 — 20,488 
Reversal of (provision for) credit losses86,302 (1,132,990)(1,046,688)
Balance, June 30, 2024$21,337,941 $16,797,791 $38,135,732 
The tables below detail the types of loans in the Company’s loan portfolio, as well as the property type and geographic location of the properties securing these loans. Carrying value represents the amortized cost of loan, net of applicable allowance for credit losses.
June 30, 2025December 31, 2024
Loan StructurePrincipal BalanceCarrying Value% of Total Principal BalanceCarrying Value% of Total
Preferred equity investments$47,675,001 $30,554,359 100.0 %$45,902,453 $30,387,896 100.0 %
Total$47,675,001 $30,554,359 100.0 %$45,902,453 $30,387,896 100.0 %
June 30, 2025December 31, 2024
Property TypePrincipal BalanceCarrying Value% of Total Principal BalanceCarrying Value% of Total
Mixed use$20,224,740 $20,426,987 66.8 %$18,567,296 $18,575,895 61.1 %
Office24,491,877 7,503,988 24.6 %24,491,877 9,238,721 30.4 %
Multifamily2,958,384 2,623,384 8.6 %2,843,280 2,573,280 8.5 %
Total$47,675,001 $30,554,359 100.0 %$45,902,453 $30,387,896 100.0 %
June 30, 2025December 31, 2024
Geographic LocationPrincipal BalanceCarrying Value% of Total Principal BalanceCarrying Value% of Total
United States
California$20,224,740 $20,426,987 66.9 %$18,567,296 $18,575,895 61.1 %
New York27,450,261 10,127,372 33.1 %27,335,157 11,812,001 38.9 %
Total$47,675,001 $30,554,359 100.0 %$45,902,453 $30,387,896 100.0 %
Schedule of Allowances of Loan Losses
The following table presents the activity in allowance for credit losses:
Six Months Ended June 30, 2025
Allowance on Non-Performing LoansAllowance on Performing LoansTotal
FundedUnfunded
Allowance for credit losses, beginning of period$15,523,156 $179,450 $6,599 $15,709,205 
Provision for (reversal of provision for) credit losses1,799,733 (179,450)(6,599)1,613,684 
Charge-offs— — — — 
Recoveries— — — — 
Allowance for credit losses, end of period$17,322,889 $— $— $17,322,889 
Six Months Ended June 30, 2024
Allowance on Non-Performing LoansAllowance on Performing LoansTotal
FundedUnfunded
Allowance for credit losses, beginning of period$9,234,321 $469,010 $8,801 $9,712,132 
Provision for (reversal of provision for) credit losses1,132,988 (86,300)3,939 1,050,627 
Charge-offs— — — — 
Recoveries— — — — 
Allowance for credit losses, end of period$10,367,309 $382,710 $12,740 $10,762,759 
Schedule of Financing Receivable Credit Quality Indicators Based on a 5-point scale, the Company’s performing loans are rated “1” through “5”, from less risk to greater risk as follows:
Risk RatingDescription
1Very low risk
2Low risk
3Moderate/average risk
4Higher risk
5Highest risk
The following tables present the amortized cost of the Company's loan portfolio by year of origination and loan risk rating:
June 30, 2025
Loan Risk RatingNumber of LoansAmortized Cost% of TotalAmortized Cost by Year Originated
20252024202320222021Prior
1— $— — %$— $— $— $— $— $— 
2— — — %— — — — — — 
3— — — %— — — — — — 
4— — — %— — — — — — 
5— — — %— — — — — — 
Non-performing3 47,877,248 100.0 %— — — 20,426,987 — 27,450,261 
3 47,877,248 100.0 %$— $— $— $20,426,987 $— $27,450,261 
Allowance for credit losses(17,322,889)
Total, net of allowance for
    credit losses		$30,554,359 
December 31, 2024
Loan Risk RatingNumber of LoansAmortized Cost% of TotalAmortized Cost by Year Originated
20242023202220212020Prior
1— $— — %$— $— $— $— $— $— 
2— — — %— — — — — — 
3— — — %— — — — — — 
41 18,755,345 40.7 %— — 18,755,345 — — — 
5— — — %— — — — — — 
Non-performing 2 27,335,157 59.3 %— — — — — 27,335,157 
3 46,090,502 100.0 %$— $— $18,755,345 $— $— $27,335,157 
Allowance for credit losses(15,702,606)
Total, net of allowance for
    credit losses		$30,387,896