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Subordinate Loans | 12 Months Ended
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Dec. 31, 2013
Mortgage Loans on Real Estate [Line Items] |
Subordinate Loans |
Property Type | Location |  | Interest Rate |  | Final Extended Maturity Date |  | Periodic Payment Terms |  | Face amount of loans |  | Carrying amount of loans |
Commercial mortgage loans |  |  |  |  |  |  |  |  |  |  |  |
Hotel | New York |  | 8.25 | % |  | Feb - 15 |  | 30 year |  | $ | 31,317 |  |  | $ | 31,317 |  |
Office Condo (Headquarters) | New York |  | 8.00 | % |  | Feb - 15 |  | 30 year |  | 27,169 |  |  | 27,169 |  |
Hotel | Maryland |  | 9.00 | % |  | Apr -15 |  | 25 year |  | 24,947 |  |  | 24,785 |  |
Condo Conversion | New York |  | 9.00 | % |  | Jan -17 |  | Interest only |  | 45,000 |  |  | 44,867 |  |
Condo Conversion | New York |  | 9.67 | % |  | Sept - 16 |  | Interest only |  | 33,167 |  |  | 32,961 |  |
Total commercial mortgage loans |  |  |  |  |  |  |  |  | 161,600 |  |  | 161,099 |  |
Subordinate loans (1) |  |  |  |  |  |  |  |  |  |  |  |
Office | Michigan |  | 13.00 | % |  | Jun - 20 |  | 25 year |  | 8,866 |  |  | 8,866 |  |
Ski Resort | California |  | 14.00 | % |  | May - 17 |  | Interest only |  | 40,000 |  |  | 39,781 |  |
Hotel | New York |  | 12.00 | % |  | Feb - 15 |  | Interest only |  | 15,000 |  |  | 15,207 |  |
Mixed Use | North Carolina |  | 11.10 | % |  | Aug - 22 |  | Interest only |  | 6,525 |  |  | 6,525 |  |
Office Complex | Missouri |  | 11.75 | % |  | Oct - 22 |  | 30 year |  | 9,849 |  |  | 9,849 |  |
Hotel Portfolio | Various US cities |  | 11.07 | % |  | Nov - 16 |  | 30 year |  | 48,431 |  |  | 48,397 |  |
Condo Conversion | New York |  | 9.00 | % |  | Jan -17 |  | Interest only |  | 35,000 |  |  | 34,734 |  |
Condo Construction | New York |  | 13.25 | % |  | July - 18 |  | Interest only |  | 66,800 |  |  | 66,340 |  |
Multifamily Conversion | New York |  | 10.48 | % |  | Dec - 15 |  | Interest only |  | 18,000 |  |  | 17,906 |  |
Hotel Portfolio | Minnesota |  | 11.00 | % |  | Feb - 18 |  | 30 year |  | 24,771 |  |  | 24,771 |  |
Warehouse Portfolio | Various US cities |  | 11.50 | % |  | May - 23 |  | Interest only |  | 32,000 |  |  | 32,000 |  |
Multifamily Conversion | New York |  | 12.25 | % |  | Sept - 14 |  | Interest only |  | 44,000 |  |  | 43,859 |  |
Office Condo | New York |  | 11.25 | % |  | Jul - 22 |  | Interest only |  | 14,000 |  |  | 13,565 |  |
Condo Conversion | New York |  | 9.67 | % |  | Sept - 16 |  | Interest only |  | 295 |  |  | 2 |  |
Mixed Use | Pennsylvania |  | 9.42 | % |  | Aug - 18 |  | Interest only |  | 22,500 |  |  | 22,342 |  |
Healthcare Portfolio | Various US cities |  | 11.15 | % |  | Jun - 14 |  | Interest only |  | 47,000 |  |  | 47,000 |  |
Mixed Use | Florida |  | 10.42 | % |  | Oct - 18 |  | Interest only |  | 50,000 |  |  | 49,535 |  |
Mixed Use | Various US cities |  | 14.00 | % |  | Dec - 18 |  | Interest only |  | 17,000 |  |  | 16,805 |  |
Total subordinate loans |  |  |  |  |  |  |  |  | 500,037 |  |  | 497,484 |  |
Total |  |  |  |  |  |  |  | $ | 661,637 |  |  | $ | 658,583 |  | (2)
(1) | Subject to prior liens.
(2) | The aggregate cost for federal income tax purposes is $658,583.
The following table summarizes the changes in the carrying amounts of mortgage loans during 2013 and 2012. Reconciliation of Carrying Amount of Loans
| 2013 |  | 2012
Balance at beginning of year | $ | 389,167 |  |  | $ | 258,092 |
New mortgage loans | 401,912 |  |  | 159,465 |
Collections of principal | (137,168 | ) |  | (31,408 | )
Discount accretion | 4,672 |  |  | 3,018 |
Balance at the close of year | $ | 658,583 |  |  | $ | 389,167 |
Subordinate Loans [Member] |
Mortgage Loans on Real Estate [Line Items] |
Subordinate Loans | Subordinate Loans The Company’s subordinate loan portfolio was comprised of the following as of December 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 |  |  | $ | 8,866 |  |  | $ | 8,866 |  |  | Fixed |
Ski Resort - California | Apr-11 |  | May-17 |  | 40,000 |  |  | 40,000 |  |  | 39,781 |  |  | Fixed |
Hotel– New York (1) | Jan-12 |  | Feb-14 |  | 15,000 |  |  | 15,000 |  |  | 15,207 |  |  | Fixed |
Mixed Use – North Carolina | Jul-12 |  | Jul-22 |  | 6,525 |  |  | 6,525 |  |  | 6,525 |  |  | Fixed |
Office Complex - Missouri | Sept-12 |  | Oct-22 |  | 10,000 |  |  | 9,849 |  |  | 9,849 |  |  | Fixed |
Hotel Portfolio – Various (1) | Nov-12 |  | Nov-15 |  | 50,000 |  |  | 48,431 |  |  | 48,397 |  |  | Floating |
Condo Conversion – NY, NY (2) | Dec-12 |  | Jan-15 |  | 35,000 |  |  | 35,000 |  |  | 34,734 |  |  | Floating |
Condo Construction – NY, NY (1) | Jan-13 |  | Jul-17 |  | 60,000 |  |  | 66,800 |  |  | 66,340 |  |  | Fixed |
Multifamily Conversion – NY, NY (1) | Jan-13 |  | Dec-14 |  | 18,000 |  |  | 18,000 |  |  | 17,906 |  |  | Floating |
Hotel Portfolio – Rochester, MN | Jan-13 |  | Feb-18 |  | 25,000 |  |  | 24,771 |  |  | 24,771 |  |  | Fixed |
Warehouse Portfolio - Various | May-13 |  | May-23 |  | 32,000 |  |  | 32,000 |  |  | 32,000 |  |  | Fixed |
Multifamily Conversion – NY, NY (3) | May-13 |  | Jun-14 |  | 44,000 |  |  | 44,000 |  |  | 43,859 |  |  | Floating |
Office Condo - NY, NY | Jul-13 |  | Jul-22 |  | 14,000 |  |  | 14,000 |  |  | 13,565 |  |  | Fixed |
Condo Conversion – NY, NY (4) | Aug-13 |  | Sept-15 |  | 294 |  |  | 295 |  |  | 2 |  |  | Floating |
Mixed Use - Pittsburgh, PA (1) | Aug-13 |  | Aug-16 |  | 22,500 |  |  | 22,500 |  |  | 22,342 |  |  | Floating |
Healthcare Portfolio - Various | Oct-13 |  | Jun-14 |  | 47,000 |  |  | 47,000 |  |  | 47,000 |  |  | Floating |
Mixed Use - Florida (2) | Nov-13 |  | Oct-18 |  | 50,000 |  |  | 50,000 |  |  | 49,535 |  |  | Floating |
Mixed Use - Various (2) | Dec-13 |  | Dec-18 |  | 17,000 |  |  | 17,000 |  |  | 16,805 |  |  | Fixed |
Total/Weighted Average |  |  |  |  | $ | 495,319 |  |  | $ | 500,037 |  |  | $ | 497,484 |  |  | 11.60 | %
(1) | Includes a one-year extension option subject to certain conditions and the payment of an extension fee.
(2) | Includes two one-year extension options subject to certain conditions and the payment of a fee for each extension.
(3) | Includes a three-month extension option subject to certain conditions and the payment of an extension fee.
(4) | Includes a one-year extension option subject to certain conditions and the payment of an extension fee. As of December 31, 2013, the Company had $29,106 of unfunded loan commitments related to this loan.
In February 2013, the Company received principal repayments 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% IRR on its mezzanine loan investment. For a description of how the IRR is calculated, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Investments.” In June 2013, the Company received the repayment of a $15,000 mezzanine loan secured by a hotel in New York City. In connection with the repayment, the Company received a yield maintenance payment totaling $1,233. With the yield maintenance payment, the Company realized a 19% IRR on its mezzanine loan investment. For a description of how the IRR is calculated, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Investments.” During October 2013, the Company received a full principal repayment from a $25,000 mezzanine loan secured by a portfolio of hotels in New York City. The Company realized a 12% IRR on this investment. During 2013, the Company received a full principal repayment from a $25,000 subordinate financing secured by a retail center in Woodbridge, Virginia. The Company realized a 15% IRR on this investment. The Company’s subordinate loan portfolio was comprised of the following as of 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.
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 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, 2013 and December 31, 2012.

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- Definition The entire disclosure for mortgage loans on real estate, this includes the supplemental information pertaining to each mortgage loan receivable that equals or exceeds three percent of the carrying amount of mortgages. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04.(c) Schedule IV) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 29 -Article 12 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Subparagraph Schedule IV -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 948 -SubTopic 310 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-29) -URI http://asc.fasb.org/extlink&oid=6589523&loc=d3e617274-123014 + Details
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