Summary of Significant Accounting Policies (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Accounting Policies [Abstract] |
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| Schedule of Estimated Useful Lives of Assets |
The Company’s investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: | | | | | | | | | | Description | | Depreciable Life | | Buildings | | 15-40 years | | Site improvements - buildings and land | | 2-20 years | | Furniture, fixtures and equipment | | 5-15 years | | Lease intangibles | | Over lease term |
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| Fair Value Measurements, Recurring |
The following table details the Company’s assets and liabilities measured at fair value on a recurring basis ($ in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets: | | | | | | | | | | | | | | | | | Investments in real estate debt | $ | — | | | $ | — | | | $ | 304,589 | | | $ | 304,589 | | | $ | — | | | $ | — | | | $ | 224,600 | | | $ | 224,600 | | | Investments in real estate-related and other securities | — | | | 14,999 | | | — | | | 14,999 | | | — | | | 15,323 | | | — | | | 15,323 | | Interest rate swaps(1) | — | | | 858 | | | — | | | 858 | | | — | | | — | | | — | | | — | | | Total | $ | — | | | $ | 15,857 | | | $ | 304,589 | | | $ | 320,446 | | | $ | — | | | $ | 15,323 | | | $ | 224,600 | | | $ | 239,923 | | | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | Mandatorily Redeemable Instruments | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 54,794 | | | $ | 54,794 | | Interest rate swaps(2) | — | | | 72 | | | — | | | 72 | | | — | | | 354 | | | — | | | 354 | | | Total | $ | — | | | $ | 72 | | | $ | — | | | $ | 72 | | | $ | — | | | $ | 354 | | | $ | 54,794 | | | $ | 55,148 | |
(1)Included in other assets, net on the Company’s Condensed Consolidated Balance Sheets. (2) Included in accounts payable, accrued expenses and other liabilities on the Company’s Condensed Consolidated Balance Sheets.
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| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
The following table details the Company’s assets and liabilities measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): | | | | | | | | | | | | | Investments in Real Estate Debt (asset) | | Mandatorily Redeemable Instruments (liability) | | Balance at December 31, 2025 | $ | 224,600 | | | $ | 54,794 | | | Additions | 80,000 | | | — | | | Repurchases | — | | | (54,985) | | | Distributions declared | — | | | 394 | | | Reclassify to distributions payable/paid | — | | | (394) | | | Redemption value adjustment | — | | | 191 | | | Fair value adjustment | (11) | | | — | | | Balance at June 30, 2026 | $ | 304,589 | | | $ | — | |
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| Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation |
The following table details the Company’s assets and liabilities measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): | | | | | | | | | | | | | Investments in Real Estate Debt (asset) | | Mandatorily Redeemable Instruments (liability) | | Balance at December 31, 2025 | $ | 224,600 | | | $ | 54,794 | | | Additions | 80,000 | | | — | | | Repurchases | — | | | (54,985) | | | Distributions declared | — | | | 394 | | | Reclassify to distributions payable/paid | — | | | (394) | | | Redemption value adjustment | — | | | 191 | | | Fair value adjustment | (11) | | | — | | | Balance at June 30, 2026 | $ | 304,589 | | | $ | — | |
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| Fair Value Measurement Inputs and Valuation Techniques |
The following table contains the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy ($ in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Fair Value | | Valuation Technique | | Unobservable Inputs | | Weighted - Average Rate | | Impact to Valuation from an Increase in Input | | Assets: | | | | | | | | | | | Investments in real estate debt | $ | 304,589 | | | Discounted cash flow | | Market credit spread | | SOFR(1) + 2.54% | | Decrease | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Fair Value | | Valuation Technique | | Unobservable Inputs | | Weighted - Average Rate | | Impact to Valuation from an Increase in Input | | Assets: | | | | | | | | | | | Investments in real estate debt | $ | 224,600 | | | Discounted cash flow | | Market credit spread | | SOFR(2) + 2.69% | | Decrease | | | | | | | | | | | | Liabilities: | | | | | | | | | | Mandatorily Redeemable Instruments(3) | $ | 54,794 | | | Discounted cash flow | | Discount rate/
Exit capitalization rate/
Market yield | | 7.52%/ 6.07%/ 5.44% | | Decrease |
(1)“SOFR” refers to the Secured Overnight Financing Rate at June 30, 2026. (2)“SOFR” refers to the Secured Overnight Financing Rate at December 31, 2025. (3)Mandatorily Redeemable Instruments are carried at the NAV of the Class E units, which is determined monthly in accordance with the Company's valuation guidelines.
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| Schedule of Carrying Value and Fair Value of Financial Instruments |
The following table presents the carrying value and fair value of financial instruments that are not carried at fair value on the Condensed Consolidated Balance Sheets ($ in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Carrying Value(1) | | Fair Value | | Carrying Value(1) | | Fair Value | | Mortgage notes | $ | 369,390 | | | $ | 366,606 | | | $ | 365,641 | | | $ | 366,381 | | | Repurchase facility | 228,450 | | | 228,450 | | | 168,450 | | | 168,450 | | | Unsecured revolving credit facility | 55,000 | | | 55,000 | | | 73,000 | | | 73,000 | | | Total | $ | 652,840 | | | $ | 650,056 | | | $ | 607,091 | | | $ | 607,831 | |
(1)Excludes deferred financing costs and discounts.
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