Note 6 – Subordinate Loans

The Company’s subordinate loan portfolio was comprised of the following at March 31, 2013:


Description	Date of Investment		Maturity Date		Original Face Amount		Current Face Amount		Carrying Value		Coupon
Office - Michigan		May-10		Jun-20	$	9,000	$	8,897	$	8,897		Fixed
Ski Resort - California		Apr-11		May-17		40,000		40,000		39,855		Fixed
Hotel Portfolio – New York (1)		Aug-11		July-13		25,000		25,000		25,000		Floating
Retail Center – Virginia (2)		Oct-11		Oct-14		25,000		24,442		24,442		Fixed
Hotel– New York (3)		Jan-12		Feb-14		15,000		15,000		15,058		Fixed
Hotel– New York (4)		Mar-12		Mar-14		15,000		15,000		15,000		Floating
Mixed Use – North Carolina		Jul-12		Jul-22		6,525		6,525		6,525		Fixed
Office Complex - Missouri		Sept-12		Oct-22		10,000		9,945		9,945		Fixed
Hotel Portfolio – Various (5)		Nov-12		Nov-15		50,000		49,799		49,620		Floating
Condo Conversion – NY, NY (6)		Dec-12		Jan-15		350		350		—		Floating
Condo Construction – NY, NY (7)		Jan-13		Jul-17		49,139		50,009		49,420		Fixed
Multifamily Conversion – NY, NY (8)		Jan-13		Dec-14		18,000		18,000		17,839		Floating
Hotel Portfolio – Rochester, MN		Jan-13		Feb-18		25,000		24,968		24,968		Fixed

Total/Weighted Average					$	288,014	$	287,935	$	286,569		12.24	%

(1)	Includes three one-year extension options subject to certain conditions and the payment of a fee for the fourth and fifth year extensions.

(2)	Includes two one-year extension options subject to certain conditions.

(3)	Includes a one-year extension option subject to certain conditions and the payment of an extension fee.

(4)	Includes two one-year extension options subject to certain conditions and the payment of a fee for the second extension.

(5)	Includes a one-year extension option subject to certain conditions and the payment of an extension fee.

(6)	Includes two one-year extension options subject to certain conditions and the payment of a fee for each extension. As of March 31, 2013, the Company had $34,650 of unfunded loan commitments related to this loan.

(7)	Includes a one-year extension option subject to certain conditions and the payment of an extension fee. As of March 31, 2013, the Company had $10,861 of unfunded loan commitments related to this loan.

(8)	Includes a one-year extension option subject to certain conditions and the payment of an extension fee.

In February 2013, the Company received principal repayment on two mezzanine loans totaling $50,000 secured by a portfolio of retail shopping centers located throughout the United States. In connection with the repayment, the Company received a yield maintenance payment totaling $2,500. With the yield maintenance payment, the Company realized a 15% internal rate of return (“IRR”) on its mezzanine loan investment. For a description of how IRR is calculated, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition and Results of Operations – Investments”.

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
Senior Mezz - Retail - Various		Dec-09		Dec-19	$	30,000	$	30,000	$	30,000		Fixed
Junior Mezz - Retail - Various		Dec-09		Dec-19		20,000		20,000		20,000		Fixed
Office - Michigan		May-10		Jun-20		9,000		8,912		8,912		Fixed
Ski Resort - California		Apr-11		May-17		40,000		40,000		39,831		Fixed
Hotel Portfolio – New York (1)		Aug-11		July-13		25,000		25,000		25,000		Floating


Retail Center – Virginia (2)	Oct-11	Oct-14		25,000		26,243		26,243	Fixed
Hotel– New York (3)	Jan-12	Feb-14		15,000		15,000		15,013	Fixed
Hotel– New York (4)	Mar-12	Mar-14		15,000		15,000		15,000	Floating
Mixed Use – North Carolina	Jul-12	Jul-22		6,525		6,525		6,525	Fixed
Office Complex - Missouri	Sept-12	Oct-22		10,000		9,979		9,979	Fixed
Hotel Portfolio – Various (5)	Nov-12	Nov-15		50,000		49,950		49,743	Floating
Condo Conversion – NY, NY (6)	Dec-12	Jan-15		350		350		—	Floating

Total/Weighted Average			$	245,875	$	246,959	$	246,246	12.46	%

(1)	Includes three one-year extension options subject to certain conditions and the payment of a fee for the fourth and fifth year extensions.

(2)	Includes two one-year extension options subject to certain conditions.

(3)	Includes a one-year extension option subject to certain conditions and the payment of an extension fee.

(4)	Includes two one-year extension options subject to certain conditions and the payment of a fee for the second extension.

(5)	Includes a one-year extension option subject to certain conditions and the payment of an extension fee.

(6)	Includes two one-year extension options subject to certain conditions and the payment of a fee for each extension. As of December 31, 2012, the Company had $34,650 of unfunded loan commitments related to this loan.

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 March 31, 2013 and December 31, 2012.