Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2013

Investments, All Other Investments [Abstract]

The following table presents the carrying value and estimated fair value of the Company’s financial instruments not carried at fair value on the consolidated balance sheet at September 30, 2013 and December 31, 2012:



	September 30, 2013						December 31, 2012
	Carrying Value			Estimated Fair Value			Carrying Value			Estimated Fair Value
Cash and cash equivalents	$	86,824		$	86,824		$	108,619		$	108,619
Restricted cash	15,794			15,794			—			—
Commercial first mortgage loans	160,893			165,063			142,921			150,144
Subordinate loans	394,554			400,099			246,246			250,520
Repurchase agreements	—			—			6,598			6,598
Borrowings under repurchase agreements	(227,167		)	(227,175		)	(225,158		)	(225,158		)

To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, are used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts. The Company’s commercial first mortgage loans, subordinate loans and repurchase agreements are carried at amortized cost on the condensed consolidated financial statements and are classified as Level III in the fair value hierarchy.