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Commercial Mortgage Loans | 12 Months Ended
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Dec. 31, 2013
Mortgage Loans on Real Estate [Line Items] |
Commercial Mortgage 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 |
Commercial mortgage loans [Member] |
Mortgage Loans on Real Estate [Line Items] |
Commercial Mortgage Loans | Commercial Mortgage Loans The Company’s commercial mortgage loan portfolio was comprised of the following at December 31, 2013:
Description | Date of Investment |  | Maturity Date |  | Original Face Amount |  | Current Face Amount |  | Carrying Value |  | Coupon |  | Property Size
Hotel - NY, NY | Jan-10 |  | Feb-15 |  | $ | 32,000 |  |  | $ | 31,317 |  |  | $ | 31,317 |  |  | Fixed |  |  | 151 rooms
Office Condo (Headquarters) - NY, NY | Feb-10 |  | Feb-15 |  | 28,000 |  |  | 27,169 |  |  | 27,169 |  |  | Fixed |  |  | 73,419 sq. ft.
Hotel - Silver Spring, MD | Mar-10 |  | Apr-15 |  | 26,000 |  |  | 24,947 |  |  | 24,785 |  |  | Fixed |  |  | 263 rooms
Condo Conversion – NY, NY (1) | Dec-12 |  | Jan-15 |  | 45,000 |  |  | 45,000 |  |  | 44,867 |  |  | Floating |  |  | 119,000 sq. ft.
Condo Conversion – NY, NY (2) | Aug-13 |  | Sept-15 |  | 33,000 |  |  | 33,167 |  |  | 32,961 |  |  | Floating |  |  | 40,000 sq. ft.
Total/Weighted Average |  |  |  |  | $ | 164,000 |  |  | $ | 161,600 |  |  | $ | 161,099 |  |  | 8.82 | % |  |
(1) | This loan includes two one-year extension options subject to certain conditions and the payment of a fee for each extension.
(2) | This loan includes a one-year extension option subject to certain conditions and the payment of a fee.
At December 31, 2013, the New York hotel loan, the New York office condo and the Maryland hotel were all pledged to secure borrowings under the Company’s $100,000 master repurchase facility entered into with JPMorgan Chase Bank, N.A. (the “JPMorgan Facility”). See Note 8 – Borrowings for a description of this facility. During March 2013, the Company consented to the transfer of the controlling ownership of the borrower under the Silver Spring, Maryland loan. In conjunction with its consent, the Company received a $280 fee, which will be recognized over the remaining life of the loan. During September 2013, two senior sub-participation interests in a first mortgage loan which was secured by over 20 acres of land in South Boston, Massachusetts were repaid at par. The senior sub-participation interests were purchased at 78% of par (including a 3% brokerage fee). Upon the repayment, the Company realized an internal rate of return ("IRR") of 25% on its investment. For a description of how the IRR is calculated, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Financial Conditions and Results of Operations—Investments”. The Company’s commercial mortgage 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 |  | Property Size
Hotel - NY, NY | Jan-10 |  | Feb-15 |  | $ | 32,000 |  |  | $ | 31,571 |  |  | $ | 31,571 |  |  | Fixed |  | 151 rooms
Office Condo (Headquarters) - NY, NY | Feb-10 |  | Feb-15 |  | 28,000 |  |  | 27,419 |  |  | 27,419 |  |  | Fixed |  | 73,419 sq. ft.
Hotel - Silver Spring, MD | Mar-10 |  | Apr-15 |  | 26,000 |  |  | 25,273 |  |  | 25,273 |  |  | Fixed |  | 263 rooms
Mixed Use – South Boston, MA (1) | Apr-12 |  | Dec-13 |  | 23,844 |  |  | 17,287 |  |  | 14,105 |  |  | Floating |  | 20 acres
Condo Conversion – NY, NY (2) | Dec-12 |  | Jan-15 |  | 45,000 |  |  | 45,000 |  |  | 44,553 |  |  | Floating |  | 119,000 sq. ft.
Total/Weighted Average |  |  |  |  | $ | 154,844 |  |  | $ | 146,550 |  |  | $ | 142,921 |  |  | 7.82 | % |  |
During April 2012, a $24,000 two-year fixed rate first mortgage loan on a 155-room boutique hotel in midtown Manhattan was repaid. The loan had an interest rate of 8.00%. The Company repaid $15,444 of borrowings under the JPMorgan Facility in conjunction with this repayment. The Company evaluates its loans for possible impairment on a quarterly basis. The Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan by loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash from operations are sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan, and/or (iii) the property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such loan loss analyses are completed and reviewed by asset management and finance personnel, who utilize various data sources, including (i) periodic financial data such as debt service coverage ratio, property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, and (iii) current credit spreads and discussions with market participants. An allowance for loan loss is established when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. The Company has determined that an allowance for loan losses was not necessary at December 31, 2013 and 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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