Commercial Mortgage Loans

12 Months Ended

Dec. 31, 2015

Mortgage Loans on Real Estate [Line Items]

Schedule IV — Mortgage Loans on Real Estate

December 31, 2015



Property Type	Location	Interest Rate		Final Extended Maturity Date	Periodic Payment Terms	Face amount of loans	Carrying amount of loans
Commercial mortgage loans
Condo Conversion	New York	7.00	%	Sept - 16	Interest only	24,114	24,289
Condo Construction	Maryland	10.50	%	Mar-17	Interest only	65,125	65,087
Vacation Home Portfolio	Various	7.50	%	Apr-19	Principal and interest	94,147	93,277
Hotel	Pennsylvania	4.74	%	May-19	Interest only	34,000	33,994
Condo Construction	Maryland	10.75	%	Jun-17	Interest only	50,000	49,960
Multifamily	New York	4.41	%	Aug-19	Interest only	34,500	34,886
Mixed Use	Ohio	9.25	%	May-20	Interest only	165,000	163,173
Condo Conversion	New York	3.75	%	Jun-16	Interest only	67,300	67,038
Multifamily	North Dakota	6.15	%	Nov-19	Principal and interest	49,691	49,665
Vacation Home Portfolio	Various US cities	7.00	%	Nov-21	Interest only	50,000	49,595
Mixed Use	New York	7.25	%	Mar-17	Interest only	85,770	85,658
Retail redevelopment	Florida	6.25	%	Jan-18	Interest only	45,000	44,925
Retail redevelopment	Florida	6.25	%	Jul-17	Interest only	33,000	32,804
Retail	New York	10.25	%	Mar-17	Interest only	1,653	1,636
Hotel	New York	5.50	%	Sept-20	Interest only	98,373	97,381
Retail	New York	7.25	%	Mar-17	Interest only	5,910	5,858
Hotel	U.S. Virgin Islands	5.27	%	Jan-21	Interest only	42,000	41,600
Office	Virginia	5.53	%	Jan-20	Principal and interest	54,000	53,475
Total commercial mortgage loans						999,583	994,301
Subordinate loans (1)
Office	Michigan	13.00	%	Jun - 20	Principal and interest	8,753	8,753
Mixed Use	North Carolina	11.10	%	Aug - 22	Interest only	6,525	6,525
Office Complex	Missouri	11.75	%	Oct - 22	Principal and interest	9,566	9,566
Hotel Portfolio	Missouri	11.00	%	Feb - 18	Principal and interest	24,182	24,182
Warehouse Portfolio	Various US cities	11.50	%	May - 23	Interest only	32,000	32,000
Office Condo	New York	11.25	%	Jul - 22	Interest only	14,000	13,631
Condo Conversion	New York	7.00	%	Sept - 16	Interest only	6,386	6,415
Mixed Use	Various US cities	14.00	%	Dec - 18	Interest only	19,500	19,377
Mixed Use	England	10.25	%	Jan - 16	Interest only	50,676	50,676
Healthcare Portfolio	Various US	9.47	%	Jun - 19	Interest only	39,223	39,223
Ski Resort	Montana	14.00	%	Sept - 20	Interest only	15,000	14,878
Mixed Use	New York	10.69	%	Dec - 19	Interest only	88,368	87,818
Senior Housing	United Kingdom	8.83	%	Dec - 19	Principal and interest	79,735	79,735
Hotel	California	10.40	%	Jan-20	Principal and interest	20,000	20,000



Multifamily Portfolio	Florida	11.70	%	May-20	Interest only	22,000		21,895
Multifamily Portfolio	Florida	11.70	%	May-20	Interest only	15,500		15,426
Mixed Use	Various US	9.30	%	May-20	Interest only	45,000		44,854
Hotel	Arizona	11.50	%	Jul-25	Interest only	25,000		25,000
Hotel	Washington, DC	9.80	%	Jul-19	Interest only	20,000		19,934
Condo Development	New York	13.00	%	Jul-20	Interest only	34,184		33,567
Condo Conversion	New York	12.75	%	Jul-20	Interest only	52,418		51,941
Mixed Use	New York	10.25	%	Mar-17	Interest only	12,347		12,222
Mixed Use	New York	10.50	%	Oct-19	Interest only	30,000		29,785
Hotel	New York	5.50	%	Sept-20	Interest only	2,595		2,458
Destination Resort	Various US cities	9.10	%	May-22	Interest only	75,000		71,362
Multifamily	New York	10.75	%	May-19	Interest only	55,000		54,558
Hotel	New York	12.36	%	Mar-17	Interest only	50,000		49,522
Condo Pre-development	United Kingdom	11.14	%	Dec-16	Interest only	81,048		81,048
Multifamily	North Dakota	6.15	%	Nov-19	Interest only	5,000		5,000
Total subordinate loans						939,006		931,351
Total						$	1,938,589	$	1,925,652	(2	)


(1)	Subject to prior liens.


(2)	The aggregate cost for federal income tax purposes is $1,925,652.

The following table summarizes the changes in the carrying amounts of mortgage loans during 2015 and 2014.

Reconciliation of Carrying Amount of Loans



	2015			2014
Balance at beginning of year	$	1,019,702		$	658,583
New loans	1,366,062			802,664
Sales	(136,573		)	(4,950		)
Collections of principal	(348,516		)	(299,551		)
Discount accretion	9,096			4,316
Foreign currency loss	(6,116		)	(4,095		)
Payment-in-kind	21,997			16,570
Exchange for CMBS (held-to-maturity)	—			(153,835		)
Balance at the close of year	$	1,925,652		$	1,019,702

Commercial mortgage loans [Member]

Mortgage Loans on Real Estate [Line Items]

Loans

Commercial Mortgage Loans

The Company’s commercial mortgage loan portfolio was comprised of the following at December 31, 2015:

Description

Date of
Investment

Maturity
Date

Original
Face
Amount

Current
Face
Amount

Carrying
Value

Coupon

Property Size

Condo Conversion – New York, NY (1)

Aug-13

Sept-16

33,000

24,114

24,289

Floating

40,000 sq. ft.

Condo Construction - Potomac, MD (2)

Feb-14

Sept-16

80,000

65,125

65,087

Floating

50 units

Vacation Home Portfolio - Various (1)

Apr-14

Apr-19

101,000

94,147

93,277

Fixed

229 properties

Hotel - Philadelphia, PA (1)(3)

May-14

May-17

34,000

33,994

Floating

301 rooms

Condo Construction - Bethesda, MD (4)

Jun-14

Dec-16

50,000

49,960

Floating

40 units

Multifamily - Brooklyn, NY (1)(5)

Jul-14

Aug-16

34,500

34,886

Floating

63 units

Mixed Use - Cincinnati, OH (1)(3)

Nov-14

May-18

165,000

163,173

Floating

65 acres

Condo Conversion - New York, NY (1)

Nov-14

Jun-16

67,300

67,038

Floating

86,000 sq. ft.

Multifamily - Williston, ND (1)(3)

Nov-14

Nov-17

58,000

49,691

49,665

Floating

366 units/homes

Vacation Home Portfolio - Various U.S. (1)(3)

Nov-14

Nov-19

50,000

49,595

Fixed

24 properties

Mixed Use - Brooklyn, NY (1)(6)

Feb-15

Mar-17

85,770

85,658

Floating

330,000 sq. ft.

Retail redevelopment - Miami, FL (1)(7)

Jun-15

Jan-17

45,000

44,925

Floating

63,300 sq. ft.

Retail redevelopment - Miami, FL (1)

Jun-15

Jul-17

33,000

32,804

Floating

16,600 sq. ft.

Retail - Brooklyn, NY (1)(8)

Aug-15

Mar-17

1,653

1,636

Floating

10,500 sq. ft.

Hotel - New York, NY (1)(9)

Sept-15

Sept-18

97,807

98,373

97,381

Floating

317 rooms

Retail - Brooklyn, NY (1)

Nov-15

Mar-17

5,910

5,858

Floating

5,500 sq. ft.

Hotel - U.S. Virgin Islands (10)

Dec-15

Jan-18

42,000

41,600

Floating

180 rooms

Office - Richmond, VA (11)

Dec-15

Jan-18

54,000

53,475

Floating

262,000 sq. ft.

Total/Weighted Average

1,037,940

999,583

994,301

7.08


(1)	At December 31, 2015, this loan was pledged to secure borrowings under the Company’s master repurchase facility entered into with JPMorgan Chase Bank, N.A. (the “JPMorgan Facility”) or Company's repurchase agreement with Goldman Sachs Bank USA (the “Goldman Loan”). See Note 8 – Borrowings for a description of these facilities.


(2)	This loan includes a six-month extension option subject to certain conditions and the payment of a fee.


(3)	This loan includes two one-year extension options subject to certain conditions and the payment of a fee.


(4)	This loan includes a six-month extension option subject to certain conditions and the payment of a fee. As of December 31, 2015, the Company had $15,100 of unfunded loan commitments related to this loan.


(5)	This loan includes three one-year extension options subject to certain conditions and the payment of a fee for each extension.


(6)	As of December 31, 2015, the Company had $6,730 of unfunded loan commitments related to this loan.


(7)	This loan includes two six-month extension options subject to certain conditions and the payment of a fee.


(8)	As of December 31, 2015, the Company had $9,000 of unfunded loan commitments related to this loan.


(9)	This loan includes two one-year extension options subject to certain conditions and the payment of a fee. As of December 31, 2015, the Company had $40,034 of unfunded loan commitments related to this loan.


(10)	This loan includes three one-year extension options subject to certain conditions and the payment of a fee for each extension. As of December 31, 2015, the Company had $1,500 of unfunded loan commitments related to this loan.


(11)	This loan includes two one-year extension options subject to certain conditions and the payment of a fee. As of December 31, 2015, the Company had $1,000 of unfunded loan commitments related to this loan.

During April 2015, the Company received the full repayment from a commercial mortgage loan secured by a hotel in Silver Spring, Maryland.

During October 2015, the Company received the full repayment from a $45,400 pari passu note that was part of a $227,000 first mortgage loan secured by a portfolio of 21 limited service and extended stay hotels throughout the United States.

The Company’s commercial mortgage 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		Property Size
Hotel - Silver Spring, MD (1)	Mar-10	Apr-15	$	26,000	$	24,590	$	24,557	Fixed		263 rooms
Condo Conversion – New York, NY (1)(2)	Aug-13	Sept-15	33,000		33,846		33,961		Floating		40,000 sq. ft.
Condo Construction - Potomac, MD (3)	Feb-14	Sept-16	28,000		28,000		27,520		Floating		50 units
Vacation Home Portfolio - Various	Apr-14	Apr-19	101,000		100,046		99,086		Fixed		229 properties
Hotel - Philadelphia, PA (1)(4)	May-14	May-17	34,000		34,000		33,842		Floating		301 rooms
Condo Construction - Bethesda, MD (5)	Jun-14	Dec-16	20,000		20,000		19,616		Floating		40 units
Multifamily - Brooklyn, NY (1)(6)	Jul-14	Aug-16	30,000		30,000		30,110		Floating		63 units
Mixed Use - Cincinnati, OH (7)	Nov-14	May-18	20,000		20,000		18,309		Floating		65 acres
Condo Conversion - New York, NY (1)(8)	Nov-14	Dec-15	67,300		67,300		64,714		Floating		86,000 sq. ft.
Multifamily - Williston, ND (1)(4)	Nov-14	Nov-17	58,000		57,792		57,297		Floating		366 units/homes
Vacation Home Portfolio - Various U.S. (4)	Nov-14	Nov-19	50,000		50,000		49,508		Fixed		24 properties
Total/Weighted Average			$	467,300	$	465,574	$	458,520	6.84	%


(1)	At December 31, 2014, this loan was pledged to secure borrowings under the JPMorgan Facility. See Note 8 – Borrowings for a description of this facility.


(2)	This loan includes a one-year extension option subject to certain conditions and the payment of a fee.


(3)	This loan includes a six-month extension option subject to certain conditions and the payment of a fee. At December 31, 2014, the Company had $52,000 of unfunded loan commitments related to this loan.


(4)	This loan includes two one-year extension options subject to certain conditions and the payment of a fee.


(5)	This loan includes a six-month extension option subject to certain conditions and the payment of a fee. At December 31, 2014, the Company had $45,100 of unfunded loan commitments related to this loan.


(6)	This loan includes three one-year extension options subject to certain conditions and the payment of a fee for each extension. At December 31, 2014, the Company had $4,500 of unfunded loan commitments related to this loan.


(7)	This loan includes two one-year extension options subject to certain conditions and the payment of a fee. At December 31, 2014, the Company had $145,000 of unfunded loan commitments related to this loan.


(8)	This loan includes a six-month extension option subject to certain conditions and the payment of a fee.

During November 2014, the Company received the full repayment from a whole loan secured by an office condominium in New York City as well as a hotel in New York City.

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

The Company evaluates each loan 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, 2015 and 2014.