Investments In Real Estate Debt

9 Months Ended

Sep. 30, 2025

Investments, All Other Investments [Abstract]

The details of the real estate debt investments are as follows ($ in thousands):


	Carrying Value and Fair Value at
Collateral	September 30, 2025		December 31, 2024

110 East - Pledge of equity interest (1) Charlotte, NC, Office Building	$	17,180	$	16,559
Radius - Pledge of equity interest (1) Nashville, TN, Office Building	—		12,660

Saint Ann - Pledge of asset Dallas, TX, Office Building	—		138,000
Neuhoff - Pledge of equity interest (2) Nashville, TN, Mixed Use Development	19,586		—

	$	36,766	$	167,219

(1) The first priority lender of these mortgage loans had a combined balance of $89.9 million and $152.7 million as of September 30, 2025 and December 31, 2024, respectively.

(2) Reflects a loan to the Company's equity partner in the Neuhoff joint venture and is secured by such partner's 50% equity interest in the joint venture.


	Interest Income for the Three Months Ended September 30,					Interest Income for the Nine Months Ended September 30,
Collateral		2025		2024			2025		2024

110 East - Pledge of equity interest Charlotte, NC, Office Building		$	580	$	569		$	1,706	$	818
Radius - Pledge of equity interest Nashville, TN, Office Building		—		442			1,241		560

Saint Ann - Pledge of asset Dallas, TX, Office Building		—		—			350		—
Neuhoff - Pledge of equity interest Nashville, TN, Mixed Use Development		26		—			26		—

		$	606	$	1,011		$	3,323	$	1,378

In the second quarter of 2024, the Company acquired the Radius and 110 East mezzanine real estate loans for $27.2 million, which were subordinated to the first priority mortgage loans. These loans had a weighted average spread in excess of Term Secured Overnight Financing Rate ("SOFR") of 8.68%.

In the fourth quarter of 2024, the Company acquired one mortgage loan at par for $138.0 million. This mortgage was secured by Saint Ann Court, a 320,000 square foot office property in Dallas, had a maturity of December 7, 2024, and had a spread in excess of SOFR of 3.66%, with an additional 5% spread during any default period. One month after the loan went into default, on January 7, 2025, the Saint Ann borrower repaid the $138.0 million mortgage loan at par and paid the interest in full.

On January 10, 2025, the Company entered into the First Amendment to Mezzanine Loan Agreement on the Radius loan, which among other things, reduced the requirements for the borrower to qualify for an extension on the loan in exchange for a minimum payment of interest. On March 27, 2025, the Radius borrower repaid the $12.8 million mezzanine loan, and paid the interest in full, including a minimum interest guaranty of $858,000. Interest income on investments in real estate debt, including this minimum interest guaranty, is included in other revenue in the Company's consolidated statements of operations.

In the third quarter of 2025, the Company loaned its joint venture partner $19.6 million, which the partner used to fund a contribution to the Neuhoff joint venture. The loan to the Company's partner is secured by such partner’s interest in the joint venture, bears interest at SOFR plus 6.25%, and has an initial maturity of September 30, 2026, which may be extended to September 30, 2027 if the related joint venture construction loan is extended (see note 4).

The 110 East loan provides the borrower with an opportunity to extend the initial maturity date of February 2026 to February 2027, subject to certain conditions. The variable interest rate at September 30, 2025 was 13.15%, including a SOFR base rate of 4.15%. The borrower has additional borrowing capacity under this loan, for which the Company funded $2.4 million subsequent to the acquisition of the loan through the period ended September 30, 2025. The Company's share of additional borrowing capacity commitment under this loan is $4.8 million as of September 30, 2025.

As of September 30, 2025, the Company believes the fair value of the investments in real estate debt approximates the invested carrying values and, therefore, did not record any unrealized gain or loss on those investments. The acquisition and origination of the Neuhoff partnership loan was a recently executed market transaction (Level 2) and market instruments for similar debt have not changed significantly since acquisition. The 110 East mezzanine real estate loan rate approximates that which a loan with a similar maturity and loan-to-value relationship could have obtained on September 30, 2025. This fair value analysis is considered to be Level 2 under the guidelines set forth in ASC 820, as the Company utilizes market rates for similar type loans from third party brokers. In subsequent periods, the Company may make adjustments to the carrying values of these loan investments if any are required through application of the fair value hierarchy provided for under GAAP. Interest income earned and any unrealized gain or loss associated with investments in real estate debt are recorded as a component of other revenue on the Company's consolidated statement of operations.