Subordinate Loans

12 Months Ended

Dec. 31, 2014

Mortgage Loans on Real Estate [Line Items]



Property Type	Location	Interest Rate		Final Extended Maturity Date	Periodic Payment Terms	Face amount of loans		Carrying amount of loans
Commercial mortgage loans
Hotel	Maryland	9.00	%	Apr -15		24,590		24,557
Condo Conversion	New York	9.67	%	Sept - 16	Interest only	33,846		33,961
Condo Construction	Maryland	10.50	%	Mar-17	Interest only	28,000		27,520
Vacation Home Portfolio	Various	7.50	%	Apr-19		100,046		99,086
Hotel	Pennsylvania	4.71	%	May-19	Interest only	34,000		33,842
Condo Construction	Maryland	10.75	%	Jun-17	Interest only	20,000		19,616
Multifamily	New York	4.41	%	Aug-19	Interest only	30,000		30,110
Mixed Use	Ohio	9.25	%	May-20		20,000		18,309
Condo Conversion	New York	3.75	%	Jun-16	Interest only	67,300		64,714
Multifamily	North Dakota	5.15	%	Nov-19		57,792		57,297
Vacation Home Portfolio	Various US cities	7.00	%	Nov-21	Interest only	50,000		49,508
Total commercial mortgage loans						465,574		458,520
Subordinate loans (1)
Office	Michigan	13.00	%	Jun - 20		8,813		8,813
Ski Resort	California	13.25	%	May - 17	Interest only	40,000		39,771
Mixed Use	North Carolina	11.10	%	Aug - 22	Interest only	6,525		6,525
Office Complex	Missouri	11.75	%	Oct - 22		9,711		9,711
Hotel Portfolio	Various US cities	11.07	%	Nov - 16		34,042		33,995
Condo Construction	New York	13.25	%	July - 18	Interest only	76,344		76,005
Multifamily Conversion	New York	10.23	%	Dec - 15	Interest only	14,608		14,703
Hotel Portfolio	Minnesota	11.00	%	Feb - 18		24,486		24,486
Warehouse Portfolio	Various US cities	11.50	%	May - 23	Interest only	32,000		32,000
Multifamily Conversion	New York	12.25	%	Feb - 15	Interest only	44,000		43,989
Office Condo	New York	11.25	%	Jul - 22	Interest only	14,000		13,596
Condo Conversion	New York	9.67	%	Sept - 16	Interest only	29,751		29,762
Mixed Use	Pennsylvania	9.42	%	Aug - 18	Interest only	22,500		22,473
Mixed Use	Various US cities	14.00	%	Dec - 18	Interest only	19,464		19,294
Mixed Use	England	9.25	%	Jan-15	Interest only	52,355		52,355
Healthcare Portfolio	Various US	9.43	%	Jun-19	Interest only	50,000		50,000
Hotel	New York	10.25	%	Jul-19	Interest only	20,000		19,870
Ski Resort	Montana	14.00	%	Sept-20	Interest only	15,000		14,861
Mixed Use	New York	10.66	%	Dec-19		50,000		48,973
Total subordinate loans						563,599		561,182
Total						$	1,029,173	$	1,019,702	⁽²⁾


(1)	Subject to prior liens.


(2)	The aggregate cost for federal income tax purposes is $1,019,702.

The following table summarizes the changes in the carrying amounts of mortgage loans during 2014 and 2013.

Reconciliation of Carrying Amount of Loans



	2014			2013
Balance at beginning of year	$	658,583		$	389,167
New loans	802,664			401,912
Sales	(4,950		)	—
Collections of principal	(299,551		)	(137,168		)
Discount accretion	4,316			4,672
Foreign currency loss	(4,095		)	—
Payment-in-kind	16,570			—
Exchange for CMBS (held-to-maturity)	(153,835		)	—
Balance at the close of year	$	1,019,702		$	658,583

Subordinate Loans [Member]

Mortgage Loans on Real Estate [Line Items]

Loans

Subordinate Loans

The Company’s subordinate loan portfolio was comprised of the following as of December 31, 2014:



Description	Date of Investment	Maturity Date	Original Face Amount		Current Face Amount		Carrying Value		Coupon
Office - Michigan	May-10	Jun-20	$	9,000	$	8,813	$	8,813	Fixed
Ski Resort - California	Apr-11	May-17	40,000		40,000		39,771		Fixed
Mixed Use – North Carolina	Jul-12	Aug-22	6,525		6,525		6,525		Fixed
Office Complex - Missouri	Sept-12	Oct-22	10,000		9,711		9,711		Fixed
Hotel Portfolio – Various (1)	Nov-12	Nov-15	50,000		34,042		33,995		Floating
Condo Construction – NY, NY (1)	Jan-13	Jul-17	60,000		76,344		76,005		Fixed
Multifamily Conversion – NY, NY (1)	Jan-13	Dec-15	18,000		14,608		14,703		Floating
Hotel Portfolio – Rochester, MN	Jan-13	Feb-18	25,000		24,486		24,486		Fixed
Warehouse Portfolio - Various	May-13	May-23	32,000		32,000		32,000		Fixed
Multifamily Conversion – NY, NY (2)	May-13	Feb-15	44,000		44,000		43,989		Floating
Office Condo - NY, NY	Jul-13	Jul-22	14,000		14,000		13,596		Fixed
Condo Conversion – NY, NY (1)	Aug-13	Sept-15	29,400		29,751		29,762		Floating
Mixed Use - Pittsburgh, PA (3)	Aug-13	Aug-16	22,500		22,500		22,473		Floating
Mixed Use - Various (3)	Dec-13	Dec-16	17,000		19,464		19,294		Fixed
Mixed Use - London, England	Apr-14	Jan-15	50,009		52,355		52,355		Fixed
Healthcare Portfolio - Various (4)	Jun-14	Jun-16	50,000		50,000		50,000		Floating
Hotel - NY, NY (4)	Jul-14	Jul-16	20,000		20,000		19,870		Floating
Ski Resort - Big Sky, Montana	Aug-14	Sept-20	15,000		15,000		14,861		Fixed
Mixed Use - New York, NY (5)	Dec-14	Dec-17	50,000		50,000		48,973		Floating
Total/Weighted Average			$	562,434	$	563,599	$	561,182	11.34	%


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


(2)	Includes a three-month extension option subject to certain conditions and the payment of an extension fee.


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


(4)	Includes three one-year extension options subject to certain conditions and the payment of an extension fee.


(5)	Includes two one-year extension options subject to certain conditions and the payment of a fee for each extension. As of December 31, 2014, the Company had $32,500 of unfunded loan commitments related to this loan.

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.

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.

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.

During November 2014, the Company received the final repayment from a $28,250 mezzanine loan secured by a pledge of the equity interests in a borrower that owns the leasehold interest in a hotel in New York City.

During the fourth quarter of 2014, the Company received the full repayment from a subordinate loan secured by a condominium conversion project in New York City.

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	11.6	%


(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 .

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.

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.

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 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, 2014 and December 31, 2013.