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Subordinate Loans | 12 Months Ended
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Dec. 31, 2012
Subordinate Loans | Note 6 – Subordinate Loans The Company’s subordinate loan portfolio was comprised of the following at December 31, 2012:
Description |  | Date of Investment |  |  | Maturity Date |  |  | Original Face Amount |  |  | Current Face Amount |  |  | Carrying Value |  |  | Coupon |  |  | Amortization Schedule
Senior Mezz – Retail – Various |  |  | Dec-09 |  |  |  | Dec-19 |  |  | $ | 30,000 |  |  | $ | 30,000 |  |  | $ | 30,000 |  |  |  | 12.24 | % |  | Interest only (1)
Junior Mezz – Retail – Various |  |  | Dec-09 |  |  |  | Dec-19 |  |  |  | 20,000 |  |  |  | 20,000 |  |  |  | 20,000 |  |  |  | 14.00 |  |  | Interest only (1)
Office – Michigan |  |  | May-10 |  |  |  | Jun-20 |  |  |  | 9,000 |  |  |  | 8,912 |  |  |  | 8,912 |  |  |  | 13.00 |  |  | 25 year
Ski Resort – California |  |  | Apr-11 |  |  |  | May-17 |  |  |  | 40,000 |  |  |  | 40,000 |  |  |  | 39,831 |  |  |  | 14.00 |  |  | Interest only (2)
Hotel Portfolio – New York (3) |  |  | Aug-11 |  |  |  | July-13 |  |  |  | 25,000 |  |  |  | 25,000 |  |  |  | 25,000 |  |  |  | 11.49 |  |  | Interest only (4)
Retail Center – Virginia (5) |  |  | Oct-11 |  |  |  | Oct-14 |  |  |  | 25,000 |  |  |  | 26,243 |  |  |  | 26,243 |  |  |  | 14.00 |  |  | Interest only (5)
Hotel– New York (6) |  |  | Jan-12 |  |  |  | Feb-14 |  |  |  | 15,000 |  |  |  | 15,000 |  |  |  | 15,013 |  |  |  | 12.00 |  |  | Interest only (6)
Hotel– New York (7) |  |  | Mar-12 |  |  |  | Mar-14 |  |  |  | 15,000 |  |  |  | 15,000 |  |  |  | 15,000 |  |  |  | 11.50 |  |  | Interest only (7)
Mixed Use – North Carolina |  |  | Jul-12 |  |  |  | Jul-22 |  |  |  | 6,525 |  |  |  | 6,525 |  |  |  | 6,525 |  |  |  | 11.10 |  |  | Interest only
Office Complex – Missouri |  |  | Sept-12 |  |  |  | Oct-22 |  |  |  | 10,000 |  |  |  | 9,979 |  |  |  | 9,979 |  |  |  | 11.75 |  |  | 30 year
Hotel Portfolio – Various (8) |  |  | Nov-12 |  |  |  | Nov-15 |  |  |  | 50,000 |  |  |  | 49,950 |  |  |  | 49,743 |  |  |  | 11.11 |  |  | 30 year
Condo Conversion – NY, NY (9) |  |  | Dec-12 |  |  |  | Jan-15 |  |  |  | 350 |  |  |  | 350 |  |  |  | — |  |  |  | 9.00 |  |  | Interest only
Total/Weighted Average |  |  |  |  |  |  |  |  |  | $ | 245,875 |  |  | $ | 246,959 |  |  | $ | 246,246 |  |  |  | 12.46 | % |  |
(1) | Prepayments are prohibited prior to the fourth year of the loan and any prepayments thereafter are subject to prepayment penalties ranging from 5% to 1%.
(2) | Prepayments are prohibited prior to the third year of the loan and any prepayments thereafter are subject to prepayment penalties ranging from 5% to 1%.
(3) | Includes a LIBOR floor of 1% and three one-year extension options subject to certain conditions and the payment of a 0.25% fee for the fourth and fifth year extensions.
(4) | Prepayments are prohibited prior to February 2013 and any prepayments thereafter are subject to spread maintenance premiums.
(5) | Interest rate of 14.0% includes a 10.0% current payment with a 4.0% accrual. There are two one-year extension options subject to certain conditions.
(6) | Includes a 1.00% origination fee, a one-year extension option subject to certain conditions and a 0.50% extension fee as well as a 1.50% exit fee.
(7) | Includes a LIBOR floor of 0.50%, two one-year extension options subject to certain conditions and the payment of a 0.50% fee for the second extension.
(8) | Includes a 0.50% origination fee, a one-year extension option subject to certain conditions and a 0.25% extension fee.
(9) | Includes a 1.00% origination fee on the entire balance of the loan (funded and unfunded), a LIBOR floor of 0.50%, two one-year extension options subject to certain conditions and the payment of a 0.50% fee for each extension. As of December 31, 2012, the Company had $34,650 of unfunded loan commitments related to this loan.
During June 2012, the Company modified the $40,000 subordinate loan secured by a ski resort in California. The modification was completed in connection with a modification of both the senior and junior loans in order to provide financial covenant relief to the borrower and included the addition of a 0.5% amendment fee and a 1.0% exit fee upon repayment of the loan. In addition, the interest rate on the mezzanine loan was increased by 0.75% to 14% until the earlier of (i) the loan being back in compliance with its original covenants; or (ii) April 2014. As of December 31, 2012, the mezzanine loan was current on its interest payments to the Company. All of the additional remuneration will be recognized over the remaining life of the loan. The Company’s subordinate loan portfolio was comprised of the following at December 31, 2011:
Description |  | Date of Investment |  |  | Maturity Date |  |  | Original Face Amount |  |  | Current Face Amount |  |  | Coupon |  |  | Amortization Schedule
Senior Mezz – Retail – Various |  |  | Dec - 09 |  |  |  | Dec - 19 |  |  | $ | 30,000 |  |  | $ | 30,000 |  |  |  | 12.24 | % |  | Interest only (1)
Junior Mezz – Retail – Various |  |  | Dec - 09 |  |  |  | Dec - 19 |  |  |  | 20,000 |  |  |  | 20,000 |  |  |  | 14.00 |  |  | Interest only (1)
Office – Michigan |  |  | May -10 |  |  |  | Jun - 20 |  |  |  | 9,000 |  |  |  | 8,950 |  |  |  | 13.00 |  |  | 25 year
Ski Resort – California |  |  | Apr - 11 |  |  |  | May -17 |  |  |  | 40,000 |  |  |  | 40,000 |  |  |  | 13.25 |  |  | Interest only (1)
Hotel Portfolio – New York (2) |  |  | Aug - 11 |  |  |  | July - 13 |  |  |  | 25,000 |  |  |  | 25,000 |  |  |  | 11.49 |  |  | Interest only (3)
Retail Center – Virginia (4) |  |  | Oct - 11 |  |  |  | Oct - 14 |  |  |  | 25,000 |  |  |  | 25,136 |  |  |  | 14.00 |  |  | Interest only (4)
Total/Weighted Average |  |  |  |  |  |  |  |  |  | $ | 149,000 |  |  | $ | 149,086 |  |  |  | 13.00 | % |  |
(1) | Prepayments are prohibited prior to the third year of the loan and any prepayments thereafter are subject to prepayment penalties ranging from 5% to 0%.
(2) | Includes a LIBOR floor of 1% and three one-year extension options subject to certain conditions.
(3) | Prepayments are prohibited prior to February 2013 and any prepayments thereafter are subject to spread maintenance premiums.
(4) | Interest rate of 14.0% includes a 10.0% current payment with a 4.0% accrual. There are two one-year extension options subject to certain conditions.
The Company’s subordinate loan portfolio was comprised of the following at December 31, 2011:
Description |  | Date of Investment |  |  | Maturity Date |  |  | Original Face Amount |  |  | Current Face Amount |  |  | Coupon |  |  | Amortization Schedule
Senior Mezz – Retail – Various |  |  | Dec - 09 |  |  |  | Dec - 19 |  |  | $ | 30,000 |  |  | $ | 30,000 |  |  |  | 12.24 | % |  | Interest only (1)
Junior Mezz – Retail – Various |  |  | Dec - 09 |  |  |  | Dec - 19 |  |  |  | 20,000 |  |  |  | 20,000 |  |  |  | 14.00 |  |  | Interest only (1)
Office – Troy, MI |  |  | May - 10 |  |  |  | Jun - 20 |  |  |  | 9,000 |  |  |  | 8,985 |  |  |  | 13.00 |  |  | 25 year
Total/Weighted Average |  |  |  |  |  |  |  |  |  | $ | 59,000 |  |  | $ | 58,985 |  |  |  | 12.95 | % |  |
(1) | Prepayments are prohibited prior to the third year of the loan and any prepayments thereafter are subject to prepayment penalties ranging from 5% to 0%.
The Company evaluates its loans for possible impairment on a quarterly basis. See Note 5 – Commercial Mortgage Loans for a summary of the metrics reviewed. The Company has determined that an allowance for loan loss was not necessary at December 31, 2012 and December 31, 2011.

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- Definition Subordinate Loans Disclosure. + References No definition available. + Details
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