6. Real Estate Investment Assets

During October 2023, the Company acquired two properties to construct houses on each lot. One of the properties was sold in 2025 at a gain of $48. The second property, with a carrying value of $169, is not being developed. The Company is currently in negotiations to sell the second property as a lot to a builder.

On February 15, 2024, the Company completed its acquisition of 339 Justabout Land Co. LLC (“339”), in a transaction valued at $9,122. The property was then subdivided into two parcels. One parcel was being developed into lots for home construction (“Phase 1 Lots”) and the other parcel was being developed into a second phase of lots (“Phase 2 Lots”).

We charged option fees to Benjamin Marcus Homes (“BMH”) for the right to buy the Phase 1 Lots owned by 339. The option fee was $890 as of February 15, 2024, and the Company is deferring the revenue related to the option fee over twelve months. As of December 31, 2024, deferred revenue, real estate investment was $74. There was no deferred revenue related to the option fee as of December 31, 2025.

During the year ended December 31, 2025, BMH purchased eight lots from 339 for both revenue and cost of land parcels sold of $2,805. During the year ended December 31, 2024, BMH purchased nine lots from 339 for both revenue and cost of land parcels sold of $2,998. The related income and expense on these lot sales are included within non-interest income and non-interest expense, respectively, on the consolidated statements of operations. No gains or losses were recognized in the lot sales. We capitalized interest related to the cost of this investment which was included in the assets when we sold lots.

On August 6, 2025, the Company completed the sale of all assets held by 339, a business segment, to the principal owners of the Company’s largest customer, Benjamin Marcus Homes (“BMH” or “Buyer”), for a sales price of $9,876. The assets sold consisted primarily of undeveloped lots, which had a net book value of $9,683 at the time of the sale. The sale includes the settlement of $725 in option fees receivable from BMH at the time of closing and a reduction of $240 in deferred revenue associated with prior deposits from BMH for lot purchases from 339. The Company recognized a gain of $193 on the sale.

During September 2024, the Company invested in a minority non-controlling interest in one of our borrowers, DBL Capital Real Estate Fund 1, LLC (“DBL”) for $330. The investment assisted in the development of several empty lots into houses with the intent of the Company to receive a return. The Company redeemed this investment on November 4, 2025, and recorded a gain of $38 on investment.

The following table is a roll forward of real estate investment assets:

 Schedule of Roll Forward of Real Estate Investment Assets 

Capitalized Interest Activity

The following table is capitalized interest included in additions for construction/development for real estate investment assets:

Schedule of Capitalized Interest for Construction/Development Real Estate Investment Assets

The capitalized interest is included within real estate investment assets on the consolidated balance sheet.