Real Estate Owned

9 Months Ended

Sep. 30, 2018

Note 9 — Real Estate Owned

Our real estate assets at both September 30, 2018 and December 31, 2017 were comprised of a hotel property and an office building.

Real Estate Owned


	September 30, 2018						December 31, 2017
	Hotel		Office				Hotel		Office
(in thousands)	Property		Building		Total		Property		Building		Total
Land	$	3,294	$	4,509	$	7,803	$	3,294	$	4,509	$	7,803
Building and intangible assets		31,008		2,010		33,018		30,699		2,010		32,709
Less: Impairment loss		(13,307)		(2,500)		(15,807)		(13,307)		(500)		(13,807)
Less: Accumulated depreciation and amortization		(9,642)		(809)		(10,451)		(9,228)		(690)		(9,918)
Real estate owned, net	$	11,353	$	3,210	$	14,563	$	11,458	$	5,329	$	16,787

For the nine months ended September 30, 2018 and 2017, our hotel property had a weighted average occupancy rate of 54% and 55%, respectively, a weighted average daily rate of $113 for both periods and weighted average revenue per available room of $61 and $62, respectively. The operation of a hotel property is seasonal with the majority of revenues earned in the first two quarters of the calendar year. Of the total impairment losses recorded on our hotel property of $13.3 million, $2.7 million was recorded during the nine months ended September 30, 2017.

Our office building was fully occupied by a single tenant until April 2017 when the lease expired. The building is currently vacant. During the nine months ended September 30, 2018, based on discussions with market participants, we determined that the office building exhibited indicators of impairment and performed an impairment analysis. As a result of this impairment analysis, we recorded an impairment loss of $2.0 million.

Our real estate owned assets had restricted cash balances totaling $0.8 million and $0.7 million at September 30, 2018 and December 31, 2017, respectively, due to escrow requirements.