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Subordinate Loans (Subordinate loans [Member]) | 9 Months Ended
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Sep. 30, 2014
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 at September 30, 2014:
Description | Date of Investment |  | Maturity Date |  | Original Face Amount |  | Current Face Amount |  | Carrying Value |  | Coupon
Office - Michigan | May-10 |  | Jun-20 |  | $ | 9,000 |  |  | $ | 8,828 |  |  | $ | 8,828 |  |  | Fixed |
Ski Resort - California | Apr-11 |  | May-17 |  | 40,000 |  |  | 40,000 |  |  | 39,714 |  |  | 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 |  |  | 9,747 |  |  | 9,747 |  |  | Fixed |
Hotel Portfolio – Various (1) | Nov-12 |  | Nov-15 |  | 50,000 |  |  | 47,172 |  |  | 47,260 |  |  | Floating |
Condo Conversion – NY, NY (2) | Dec-12 |  | Jan-15 |  | 35,000 |  |  | 35,545 |  |  | 35,722 |  |  | Floating |
Condo Construction – NY, NY (1) | Jan-13 |  | Jul-17 |  | 60,000 |  |  | 73,844 |  |  | 73,457 |  |  | Fixed |
Multifamily Conversion – NY, NY (1) | Jan-13 |  | Dec-14 |  | 18,000 |  |  | 14,608 |  |  | 14,683 |  |  | Floating |
Hotel Portfolio – Rochester, MN | Jan-13 |  | Feb-18 |  | 25,000 |  |  | 24,560 |  |  | 24,560 |  |  | Fixed |
Warehouse Portfolio - Various | May-13 |  | May-23 |  | 32,000 |  |  | 32,000 |  |  | 32,000 |  |  | Fixed |
Multifamily Conversion – NY, NY (3) | May-13 |  | Dec-14 |  | 44,000 |  |  | 44,000 |  |  | 43,907 |  |  | Floating |
Office Condo - NY, NY | Jul-13 |  | Jul-22 |  | 14,000 |  |  | 14,000 |  |  | 13,588 |  |  | Fixed |
Condo Conversion – NY, NY (4) | Aug-13 |  | Sept-15 |  | 29,400 |  |  | 29,601 |  |  | 29,491 |  |  | Floating |
Mixed Use - Pittsburgh, PA (1) | Aug-13 |  | Aug-16 |  | 22,500 |  |  | 22,500 |  |  | 22,445 |  |  | Floating |
Mixed Use - Various (2) | Dec-13 |  | Dec-18 |  | 17,000 |  |  | 18,791 |  |  | 18,608 |  |  | Fixed |
Mixed Use - London, England | Apr-14 |  | Jan-15 |  | 54,926 |  |  | 52,034 |  |  | 52,034 |  |  | Fixed |
Hotel - NY, NY | Jun-14 |  | Dec-14 |  | 28,250 |  |  | 28,250 |  |  | 28,250 |  |  | Fixed |
Healthcare Portfolio - Various (5) | Jun-14 |  | Jun-16 |  | 50,000 |  |  | 50,000 |  |  | 50,000 |  |  | Floating |
Hotel - NY, NY (5) | Jul-14 |  | Jul-16 |  | 20,000 |  |  | 20,000 |  |  | 19,834 |  |  | Floating |
Ski Resort - Big Sky, Montana | Aug-14 |  | Sept-20 |  | 15,000 |  |  | 15,000 |  |  | 14,851 |  |  | Fixed |
Total/Weighted Average |  |  |  |  | $ | 580,601 |  |  | $ | 587,005 |  |  | $ | 585,504 |  |  | 11.20 | %
(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.
(5) | Includes three one-year extensions options subject to certain conditions and the payment of a fee for each extension.
During January 2014, the Company received a $15,000 principal repayment from a subordinate loan secured by a pledge of the equity interests in the owner of a New York City hotel. The Company realized a 14% internal rate of return ("IRR") on this subordinate loan. See below for a description of how the IRR is calculated. During June 2014, the Company received a $47,000 principal repayment from a mezzanine loan secured by a pledge of the equity interests in a portfolio of skilled nursing facilities. The Company realized a 12% IRR on this mezzanine loan. During August 2014, the Company received the final repayment from a $50,000 mezzanine loan secured by a pledge of the equity interests in a borrower that owns a portfolio of seven office parks throughout Florida. The Company realized a 13% IRR on this mezzanine loan. IRR is the annualized effective compounded return rate that accounts for the time-value of money and represents the rate of return on an investment over a holding period expressed as a percentage of the investment. It is the discount rate that makes the net present value of all cash outflows (the costs of investment) equal to the net present value of cash inflows (returns on investment). It is derived from the negative and positive cash flows resulting from or produced by each transaction (or for a transaction involving more than one investment, cash flows resulting from or produced by each of the investments), whether positive, such as investment returns, or negative, such as transaction expenses or other costs of investment, taking into account the dates on which such cash flows occurred or are expected to occur, and compounding interest accordingly. The Company’s subordinate 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
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.
During 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% IRR on its mezzanine loan investment. During 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. 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 September 30, 2014 and December 31, 2013.

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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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