Fair Value of Financial Instruments (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Fair Value of Financial Instruments [Abstract] |
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| Schedule of Investment Assets Carried at Fair Value on a Recurring Basis |
The following tables present the Company’s investment assets carried at fair value on a recurring basis on the Consolidated Balance Sheets by their level in the fair value hierarchy as of December 31, 2025 and 2024 ($ in thousands):
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December 31, 2025 |
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Level 1 |
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Level 2 |
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Level 3 |
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Financial Assets: |
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Commercial real estate loan investments |
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$ |
— |
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$ |
— |
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$ |
2,177,027 |
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Investments in real estate-related assets: |
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Mortgage servicing rights |
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— |
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— |
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74,848 |
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Residential bridge loans |
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— |
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— |
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27,735 |
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Tax liens |
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— |
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— |
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368,943 |
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Total investments in real estate-related assets: |
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— |
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— |
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471,526 |
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Total |
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$ |
— |
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$ |
— |
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$ |
2,648,553 |
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December 31, 2024 |
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Level 1 |
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Level 2 |
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Level 3 |
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Financial Assets: |
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Commercial real estate loan investments |
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$ |
— |
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$ |
— |
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$ |
370,401 |
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Investments in real estate-related assets: |
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Mortgage servicing rights |
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— |
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— |
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9,835 |
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Residential bridge loans |
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— |
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— |
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2,750 |
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Tax liens |
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— |
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— |
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68,082 |
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Total investments in real estate-related assets: |
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— |
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— |
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80,667 |
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Total |
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$ |
— |
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$ |
— |
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$ |
451,068 |
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| Summay of Changes in Investments |
The following table summarizes changes in investments during the period from June 4, 2024 (Date of Formation) through December 31, 2025 ($ in thousands):
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Commercial Real
Estate Loan
Investments |
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Mortgage Servicing Rights |
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Residential Bridge Loans |
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Tax Liens |
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Balance at June 4, 2024 (Date of Formation) |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Loan originations and fundings |
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370,401 |
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9,604 |
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2,750 |
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97,965 |
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Repayments |
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— |
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— |
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— |
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(29,883 |
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Return of capital |
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— |
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(75 |
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— |
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— |
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Net realized loss on investments |
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— |
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— |
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— |
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— |
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Net unrealized gain on investments |
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— |
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306 |
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— |
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— |
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Balance at December 31, 2024 |
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$ |
370,401 |
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$ |
9,835 |
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$ |
2,750 |
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$ |
68,082 |
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Loan originations and fundings |
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1,829,737 |
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74,202 |
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37,657 |
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540,440 |
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Repayments |
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(23,111 |
) |
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— |
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(12,672 |
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(237,860 |
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Return of capital |
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— |
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(4,373 |
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— |
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— |
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Net realized loss on investments |
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— |
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— |
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— |
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(1,791 |
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Net unrealized gain (loss) on investments |
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— |
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(4,816 |
) |
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— |
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72 |
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Balance at December 31, 2025 |
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$ |
2,177,027 |
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$ |
74,848 |
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$ |
27,735 |
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$ |
368,943 |
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| Schedule of Significant Unobservable Inputs Used in Fair Value of Investments |
The key unobservable inputs used in determining the fair value of the Company’s investments as of December 31, 2025 were as follows:
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Level 3 Asset Category |
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Fair
Value |
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Valuation
Technique |
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Significant
Unobservable
Inputs |
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Range of
Inputs |
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Impact to
Valuation from
an Increase in
Input |
Commercial real estate loan investments |
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$ |
2,177,027 |
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Discounted cash flow |
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Discount rate |
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4.10% - 12.84% |
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Decrease |
Investments in real estate-related assets: |
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Mortgage servicing rights |
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$ |
74,848 |
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NAV |
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NAV |
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$ |
74,848 |
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Increase |
Residential bridge loans |
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$ |
27,735 |
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Discounted cash flow |
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Discount rate |
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10.00% |
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Decrease |
Tax liens |
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$ |
368,943 |
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Yield analysis |
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Yield |
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5.20% - 17.02% |
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Increase |
The key unobservable inputs used in determining the fair value of the Company’s investments as of December 31, 2024 were as follows:
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Level 3 Asset Category |
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Fair
Value |
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Valuation
Technique |
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Significant
Unobservable
Inputs |
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Range of
Inputs |
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Impact to
Valuation from
an Increase in
Input |
Commercial real estate loan investments |
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$ |
370,401 |
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Discounted cash flow |
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Discount rate |
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5.44% - 9.78% |
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Decrease |
Investments in real estate-related assets: |
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Mortgage servicing rights |
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$ |
9,835 |
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NAV |
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NAV |
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$ |
9,835 |
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Increase |
Residential bridge loans |
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$ |
2,750 |
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Discounted cash flow |
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Discount rate |
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10.00% |
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Decrease |
Tax liens |
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$ |
68,082 |
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Yield analysis |
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Yield |
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7.72% - 19.92% |
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Increase |
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