Real Estate Owned

12 Months Ended

Dec. 31, 2024

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


	December 31, 2024								December 31, 2023
	Multifamily		Office		Land		Total		Multifamily		Office		Land		Total
Land	$	29,171	$	13,599	$	7,947	$	50,717	$	3,148	$	12,028	$	7,947	$	23,123
Building and intangible assets	99,812		35,561		—		135,373		26,953		42,781		—		69,734
Less: Impairment loss	—		(2,500)		—		(2,500)		—		—		—		—
Less: Accumulated depreciation and amortization	(4,497)		(2,550)		—		(7,047)		(2,168)		(3,698)		—		(5,866)
Real estate owned, net	$	124,486	$	44,110	$	7,947	$	176,543	$	27,933	$	51,111	$	7,947	$	86,991

At December 31, 2024, our REO assets were comprised of four 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 December 31, 2024 and 2023, we had mortgage notes payable totaling $74.9 million and $44.3 million, respectively, which are collateralized by our REO assets.

At December 31, 2024 and 2023, our multifamily properties had a weighted average occupancy rate of approximately 77% and 98%, respectively. At December 31, 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 2024, we foreclosed on three multifamily bridge loans and took back the underlying collateral as REO assets. These properties have a total carrying value of $97.4 million at December 31, 2024.

During 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.

During 2024 and 2023, we recorded depreciation expense related to the REO assets of $3.7 million and $2.9 million, respectively.

Our REO assets had restricted cash balances due to escrow requirements totaling $2.9 million and $1.4 million at December 31, 2024 and 2023, respectively.

Subsequent Event. In January and February 2025, we foreclosed on and took back three multifamily properties collateralizing bridge loans with a total UPB of $101.6 million.