Real Estate Owned

9 Months Ended

Sep. 30, 2024

A summary of our REO assets is as follows (in thousands):


	September 30, 2024								December 31, 2023
	Multifamily		Office		Land		Total		Multifamily		Office		Land		Total
Land	$	16,035	$	11,099	$	7,947	$	35,081	$	3,148	$	12,028	$	7,947	$	23,123
Building and intangible assets	64,449		33,916		—		98,365		26,953		42,781		—		69,734

Less: Accumulated depreciation and amortization	(3,218)		(2,302)		—		(5,520)		(2,168)		(3,698)		—		(5,866)
Real estate owned, net	$	77,266	$	42,713	$	7,947	$	127,926	$	27,933	$	51,111	$	7,947	$	86,991

At September 30, 2024, our REO assets were comprised of three multifamily properties, two office buildings and two land parcels. At December 31, 2023, our REO assets were comprised of one multifamily property, three office buildings and two land parcels.

At September 30, 2024 and December 31, 2023, we had mortgage notes payable totaling $35.4 million and $44.3 million, respectively, which are collateralized by our REO assets.

At September 30, 2024 and December 31, 2023, our multifamily properties had a weighted average occupancy rate of approximately 71% and 98%, respectively. At September 30, 2024, both our office buildings were vacant, and at December 31, 2023, two office buildings were vacant and the third building was 89% occupied.

During the quarter ended September 30, 2024, we foreclosed on two multifamily bridge loans and took back the underlying collateral as REO assets. These properties have a total carrying value of $49.9 million at September 30, 2024.

During the second quarter of 2024, we sold an office REO asset for $14.2 million, repaid the mortgage note outstanding of $9.0 million, and recognized a $3.8 million gain.

We recorded depreciation expense related to the REO assets of $0.8 million and $2.1 million for the three and nine months ended September 30, 2024, respectively, and $0.5 million and $2.2 million for the three and nine months ended September 30, 2023, respectively.

Our REO assets had restricted cash balances due to escrow requirements totaling $3.2 million and $1.4 million at September 30, 2024 and December 31, 2023, respectively.