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STRUCTURED FINANCING PORTFOLIO | 9 Months Ended
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Sep. 30, 2016
Mortgage Loans on Real Estate [Abstract] |
STRUCTURED FINANCING PORTFOLIO | STRUCTURED FINANCING PORTFOLIO As of September 30, 2016, the Company’s structured financing portfolio (the "Structured Financing Portfolio"), consisted of notes receivable and preferred equity investments, aggregating $266.8 million. These investments were collateralized either by underlying properties, the borrowers' ownership interests in the entities that own properties and/or by the borrowers' personal guarantee subordinate, as applicable, to senior liens, as follows:
(dollars in thousands) |  |  |  |  |  |
Description |  | Notes |  | Effective interest rate (1) |  | Net Carrying Amounts of Structured Financing Portfolio as of September 30, 2016 |  | Net Carrying Amounts of Structured Financing Portfolio as of December 31, 2015 |  | Maturity date |  | Extension Options
First Mortgage Loan |  | (2) |  | 7.0% |  | $ | — |  |  | $ | — |  |  | 8/3/2016 |  |
First Mortgage Loan |  | (3) |  | 8.8% |  | — |  |  | 7,500 |  |  | 11/1/2016 |  |
First Mortgage Loan |  |  |  | 6.0% |  | 15,000 |  |  | 15,000 |  |  | 5/1/2017 |  |
Preferred Equity |  | (4) |  | 8.1% |  | — |  |  | 13,000 |  |  | 9/1/2017 |  |
First Mortgage Loan |  |  |  | LIBOR + 7.1% |  | 26,000 |  |  | 26,000 |  |  | 6/25/2018 |  | 1 x 12 Months
First Mortgage Loan |  | (5) |  | 8.1% |  | 153,400 |  |  | 30,879 |  |  | 4/30/2019 |  |
Preferred Equity |  | (6) |  | 8.7% |  | 10,000 |  |  | — |  |  | 9/9/2019 |  | 1 x 12 Months
Zero Coupon Loan |  | (7) |  | 2.5% |  | 30,810 |  |  | 30,234 |  |  | 5/31/2020 |  |
Preferred Equity |  | (8) |  | 15.3% |  | 15,250 |  |  | — |  |  | 2/3/2021 |  | 2 x 12 Months
First Mortgage Loan |  | (9) |  | 9.0% |  | 12,000 |  |  | 12,000 |  |  | Demand |  |
Individually less than 3% |  |  |  | 18.0% |  | 4,356 |  |  | 12,575 |  |  | 7/1/2017 |  |
Total |  |  |  |  |  | $ | 266,816 |  |  | $ | 147,188 |  |  |  |  |
Notes: (1) Includes the effects of origination and exit fees (2) During January 2016, Fund IV made a $13.3 million loan, which was collateralized by a property and bore interest at 7.0%. The Company received received a payment of $13.8 million, which included $13.3 million of full principal repayment and $0.5 million of accrued unpaid interest during the three months ended September 30, 2016. (3) During February 2016, the Company received full principal repayment of this $7.5 million loan. (4) During February 2016, the Company received a payment of $13.4 million, which included $13.0 million of full principal repayment and $0.4 million of prepayment penalty representing interest through June 2016 on this preferred equity investment. (5) During April 2016, the Company restructured a $30.9 million mezzanine loan, which bore interest at 15%, and replaced it with a new $153.4 million loan collateralized by a first mortgage in the borrower's TIC interest. The new loan, which was made to our partners in the Brandywine Portfolio, bears interest at 8.1% (Note 5). (6) During September 2016, the Company made a preferred equity investment in a joint venture for $10.0 million. This investment earns a preferred rate of return of 8.0%. (7) The principal balance for this loan, which requires no current payments of interest, is increased by the interest accrued. (8) During January 2016, Fund IV made a preferred equity investment in a joint venture for $14.0 million. This investment earns a preferred rate of return of 15.3%. During September 2016, Fund IV increased its investment by $1.3 million. 6. STRUCTURED FINANCING PORTFOLIO (continued) (9) Loan was non-performing as of September 30, 2016. Based on the value of the underlying collateral, no reserve has been established against this loan. The Company monitors the credit quality of its notes receivable on an ongoing basis and considers indicators of credit quality such as loan payment activity, the estimated fair value of the underlying collateral, the seniority of the Company's loan in relation to other debt secured by the collateral and the prospects of the borrower. As of September 30, 2016, the Company held one non-performing note.

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- Definition The entire disclosure for mortgage loans on real estate, this includes the supplemental information pertaining to each mortgage loan receivable that equals or exceeds three percent of the carrying amount of mortgages. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 948 -SubTopic 310 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-29) -URI http://asc.fasb.org/extlink&oid=6589523&loc=d3e617274-123014 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04.(c) Schedule IV) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 + Details
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