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Debt and Preferred Equity Investments | 12 Months Ended
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Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract] |
Debt and Preferred Equity Investments | Debt and Preferred Equity Investments Below is a summary of the activity relating to our debt and preferred equity investments as of December 31, 2019 and 2018 (in thousands):
| December 31, 2019 |  | December 31, 2018
Balance at beginning of year (1) | $ | 2,099,393 |  |  | $ | 2,114,041 |
Debt investment originations/accretion (2) | 652,866 |  |  | 834,304 |
Preferred equity investment originations/accretion (2) | 14,736 |  |  | 151,704 |
Redemptions/sales/syndications/amortization (3) | (1,190,689 | ) |  | (994,906 | )
Net change in loan loss reserves | 4,000 |  |  | (5,750 | )
Balance at end of period (1) | $ | 1,580,306 |  |  | $ | 2,099,393 |
(1) | Net of unamortized fees, discounts, and premiums.
(2) | Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3) | Certain participations in debt investments that were sold or syndicated, but did not meet the conditions for sale accounting, are included in other assets and other liabilities on the consolidated balance sheets.
Below is a summary of the balances relating to our debt and preferred equity investments as of December 31, 2019 (dollars in thousands):
| Floating Rate |  | Fixed Rate |  | Total Carrying Value | Senior Financing | Maturity
Type | Carrying Value | Face Value | Interest Rate |  | Carrying Value | Face Value | Interest Rate |
Senior Mortgage Debt | $ | 341,513 |  | $342,861 | L + 2.75 - 5.50% |  | $ | 1,010 |  | $1,250 | 3.00% |  | $ | 342,523 |  | $ | — |  | 2020-2022
Junior Mortgage Debt | 31,960 |  | 32,000 | L + 6.00 - 7.25% |  | — |  | — | — |  | $ | 31,960 |  | 100,000 |  | 2020-2021
Mezzanine Debt | 245,412 |  | 247,385 | L + 4.60 - 12.36% |  | 721,175 |  | 728,138 | 2.90 - 10.00% |  | $ | 966,587 |  | 5,188,939 |  | 2020-2029
Preferred Equity | — |  | — | — |  | 239,236 |  | 244,983 | 7.00 - 11.00% |  | $ | 239,236 |  | 272,000 |  | 2020-2023
Balance at end of period | $ | 618,885 |  | $ | 622,246 |  | — |  | $ | 961,421 |  | $ | 974,371 |  | — |  | $ | 1,580,306 |  | $ | 5,560,939 |  | —
The following table is a rollforward of our total loan loss reserves at December 31, 2019, 2018 and 2017 (in thousands):
| December 31,
| 2019 |  | 2018 |  | 2017
Balance at beginning of year | $ | 5,750 |  |  | $ | — |  |  | $ | — |
Expensed | — |  |  | 6,839 |  |  | — |
Recoveries | — |  |  | — |  |  | — |
Charge-offs and reclassifications | (4,000 | ) |  | (1,089 | ) |  | — |
Balance at end of period | $ | 1,750 |  |  | $ | 5,750 |  |  | $ | — |
At December 31, 2019, all debt and preferred equity investments were performing in accordance with their respective terms. At December 31, 2019, the Company's loan loss reserves of 1.8 million were attributable to one investment with an unpaid principal balance of $142.9 million that is being marketed for sale, but is otherwise performing in accordance with its respective terms, and was not put on nonaccrual. At December 31, 2018, all debt and preferred equity investments were performing in accordance with their respective terms. At December 31, 2018, the Company's loan loss reserves of $5.8 million were attributable to two investments with an unpaid principal balance of $159.9 million that were being marketed for sale, were performing in accordance with their respective terms, and were not put on nonaccrual. We have determined that we have one portfolio segment of financing receivables at December 31, 2019 and 2018 comprising commercial real estate which is primarily recorded in debt and preferred equity investments. Included in other assets is an additional amount of financing receivables totaling $131.1 million and $124.5 million at December 31, 2019 and 2018, respectively. No financing receivables were 90 days past due at December 31, 2019 with the exception of a $28.4 million financing receivable which was put on nonaccrual in August 2018 as a result of interest default. The loan was evaluated in accordance with our loan review procedures and the Company concluded that the fair value of the collateral exceeded the carrying amount of the loan. As of December 31, 2019, management estimated the weighted average risk rating for our debt and preferred equity investments to be 1.2. Debt Investments As of December 31, 2019 and 2018, we held the following debt investments with an aggregate weighted average current yield of 8.42%, at December 31, 2019 (in thousands):
Loan Type |  | December 31, 2019 Future Funding Obligations |  | December 31, 2019 Senior Financing |  | December 31, 2019 Carrying Value (1) |  | December 31, 2018 Carrying Value (1) |  | Maturity Date (2)
Fixed Rate Investments: |  |  |  |  |  |  |  |  |  |
Mezzanine Loan(3a) |  | $ | — |  |  | $ | 1,160,000 |  |  | $ | 222,775 |  |  | $ | 213,185 |  |  | March 2020
Mezzanine Loan |  | — |  |  | 15,000 |  |  | 3,500 |  |  | 3,500 |  |  | September 2021
Mezzanine Loan |  | — |  |  | 147,000 |  |  | 24,952 |  |  | 24,932 |  |  | April 2022
Mezzanine Loan |  | — |  |  | 280,000 |  |  | 38,734 |  |  | 36,585 |  |  | August 2022
Mezzanine Loan |  | — |  |  | 326,574 |  |  | 215,737 |  |  | — |  |  | June 2023
Mezzanine Loan |  | — |  |  | 83,790 |  |  | 12,714 |  |  | 12,706 |  |  | November 2023
Mezzanine Loan |  | — |  |  | 180,000 |  |  | 30,000 |  |  | 30,000 |  |  | December 2023
Mezzanine Loan(3b) |  | — |  |  | 115,000 |  |  | 12,950 |  |  | 12,941 |  |  | June 2024
Mezzanine Loan |  | — |  |  | 95,000 |  |  | 30,000 |  |  | 30,000 |  |  | January 2025
Mezzanine Loan |  | — |  |  | 1,712,750 |  |  | 55,250 |  |  | 55,250 |  |  | June 2027
Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 11,000 |  |  |
Total fixed rate |  | $ | — |  |  | $ | 4,115,114 |  |  | $ | 646,612 |  |  | $ | 430,099 |  |  |
Floating Rate Investments: |  |  |  |  |  |  |  |  |  |
Mortgage/Mezzanine Loan(4) |  | $ | 2,509 |  |  | $ | 29,420 |  |  | $ | 82,696 |  |  | $ | 62,493 |  |  | January 2020
Mortgage/Mezzanine Loan |  | — |  |  | — |  |  | 69,839 |  |  | — |  |  | March 2020
Junior Mortgage Loan |  | — |  |  | 40,000 |  |  | 20,000 |  |  | 19,986 |  |  | April 2020
Mezzanine Loan |  | 4,831 |  |  | 47,302 |  |  | 15,743 |  |  | 12,627 |  |  | July 2020
Mortgage/Mezzanine Loan |  | — |  |  | — |  |  | 19,971 |  |  | 19,999 |  |  | August 2020
Mortgage Loan |  | 44,737 |  |  | — |  |  | 106,473 |  |  | 88,501 |  |  | September 2020
Mortgage/Mezzanine Loan |  | — |  |  | 63,990 |  |  | 55,573 |  |  | 83,449 |  |  | October 2020
Mezzanine Loan |  | 19,212 |  |  | 421,938 |  |  | 51,387 |  |  | 88,817 |  |  | December 2021
Mortgage/Mezzanine Loan |  | — |  |  | — |  |  | 35,386 |  |  | 35,266 |  |  | December 2020
Mortgage/Mezzanine Loan(3c) |  | 10,384 |  |  | — |  |  | 96,570 |  |  | 277,694 |  |  | April 2021
Mezzanine Loan |  | — |  |  | 275,000 |  |  | 49,809 |  |  | 24,961 |  |  | April 2021
Junior Mortgage Participation/Mezzanine Loan |  | — |  |  | 60,000 |  |  | 15,698 |  |  | 15,665 |  |  | July 2021
Mezzanine Loan |  | 12,999 |  |  | 151,175 |  |  | 41,395 |  |  | — |  |  | July 2021
Mezzanine Loan |  | 44,000 |  |  | — |  |  | 13,918 |  |  | — |  |  | December 2022
Mezzanine Loan |  | — |  |  | 85,000 |  |  | 20,000 |  |  | — |  |  | December 2029
Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 53,402 |  |  |
Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 79,164 |  |  |
Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 15,333 |  |  |
Loan Type |  | December 31, 2019 Future Funding Obligations |  | December 31, 2019 Senior Financing |  | December 31, 2019 Carrying Value (1) |  | December 31, 2018 Carrying Value (1) |  | Maturity Date (2)
Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 14,822 |  |  |
Mortgage/Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 154,070 |  |  |
Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 34,886 |  |  |
Mortgage/Junior Mortgage Participation Loan |  | — |  |  | — |  |  | — |  |  | 84,012 |  |  |
Mortgage/Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 37,094 |  |  |
Mortgage/Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 98,804 |  |  |
Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 7,305 |  |  |
Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 14,998 |  |  |
Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 21,990 |  |  |
Mezzanine Loan(5) |  | — |  |  | — |  |  | — |  |  | 37,499 |  |  |
Total floating rate |  | $ | 138,672 |  |  | $ | 1,173,825 |  |  | $ | 694,458 |  |  | $ | 1,382,837 |  |  |
Total |  | $ | 138,672 |  |  | $ | 5,288,939 |  |  | $ | 1,341,070 |  |  | $ | 1,812,936 |  |  |
(1) | Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.
(2) | Represents contractual maturity, excluding any unexercised extension options.
(3) | Carrying value is net of the following amounts that were sold or syndicated, which are included in other assets and other liabilities on the consolidated balance sheets as a result of the transfers not meeting the conditions for sale accounting: (a) $1.3 million, (b) $12.0 million and (c) $96.4 million
(4) | This loan was extended in January 2020.
(5) | In 2019, the Company accepted an assignment of the equity interests in the property in-lieu of repayment and marked the assets received and liabilities assumed to fair value.
Preferred Equity Investments As of December 31, 2019 and 2018, we held the following preferred equity investments with an aggregate weighted average current yield of 9.63% at December 31, 2019 (in thousands):
Type |  | December 31, 2019 Future Funding Obligations |  | December 31, 2019 Senior Financing |  | December 31, 2019 Carrying Value (1) |  | December 31, 2018 Carrying Value (1) |  | Mandatory Redemption (2)
Preferred Equity |  | $ | — |  |  | $ | 272,000 |  |  | $ | 141,171 |  |  | $ | 143,183 |  |  | April 2021
Preferred Equity |  | — |  |  | 1,763,529 |  |  | 98,065 |  |  | 143,274 |  |  | June 2022
Total |  | $ | — |  |  | $ | 2,035,529 |  |  | $ | 239,236 |  |  | $ | 286,457 |  |  |
(1) | Carrying value is net of deferred origination fees.
(2) Represents contractual maturity, excluding any unexercised extension options.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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