Participations Sold

12 Months Ended

Dec. 31, 2016

Mortgage Loans on Real Estate [Line Items]

Participations Sold

Schedule IV — Mortgage Loans on Real Estate

December 31, 2016

Property Type

Location

Contractual Interest
Rate

Final
Extended Maturity
Date (1)

Periodic
Payment Terms

Face
amount of
loans

Carrying
amount of
loans

Commercial mortgage loans

Condo Construction

Maryland

L+15.00%

Apr-17

Interest only

$51,695

$52,476

Vacation Home Portfolio

Various

7.50%

Apr-19

Principal and interest

88,876

88,195

Hotel

Pennsylvania

L+4.55%

May-19

Interest only

34,000

33,987

Mixed Use

Ohio

L+9.00%

May-20

Interest only

165,000

163,987

Multifamily

North Dakota

L+5.90%

Nov-19

Interest only

49,706

39,713

Vacation Home Portfolio

Various US cities

7.00%

Nov-21

Interest only

59,500

59,193

Mixed Use

New York

L+7.00%

Mar-17

Interest only

85,770

86,142

Retail redevelopment

Florida

L+6.00%

Jan-18

Interest only

45,000

45,415

Retail

New York

L+7.00%

Mar-17

Interest only

23,000

23,012

Hotel

New York

L+5.25%

Sept-20

Interest only

108,857

108,768

Retail

New York

L+7.00%

Mar-17

Interest only

5,910

5,921

Hotel

U.S. Virgin Islands

L+4.95%

Jan-21

Interest only

42,000

41,795

Office

Virginia

L+5.15%

Jan-20

Interest only

54,000

53,849

Retail redevelopment

Florida

L+6.25%

Jan-19

Interest only

220,000

218,771

Office

Massachusetts

L+6.25%

Sept-18

Interest only

28,659

28,543

Mixed Use

New York

L+6.00%

Dec-18

Interest only

45,789

45,541

Condo Conversion

New York

L+6.50%

Jun-18

Interest only

41,016

40,825

Hotel

New York

L+6.30%

Aug-21

Interest only

78,140

77,297

Mixed Use

Illinois

L+5.50%

Oct-20

Interest only

129,397

128,271

Retail

New York

L+7.00%

Mar-17

Interest only

7,500

7,489

Data Center

Virginia

8.00%

Aug-19

Interest only

80,000

79,634

Retail

New York

L+5.75%

Dec-18

Interest only

60,300

59,775

Office

New York

L+4.70%

Dec-18

Interest only

105,000

104,005

Mixed Use Pre-development

California

L+6.75%

Dec-20

Interest only

50,000

49,252

Total commercial mortgage loans

$1,659,115

$1,641,856

Subordinate loans (2)

Mixed Use

North Carolina

11.10%

Aug - 22

Interest only

$6,525

Office Complex

Missouri

11.75%

Oct - 22

Principal and interest

9,414

Hotel Portfolio

Missouri

11.00%

Feb - 18

Principal and interest

23,863

Warehouse Portfolio

Various US cities

11.50%

May - 23

Interest only

32,000

Office Condo

New York

11.25%

Jul - 22

Interest only

14,000

13,679

Ski Resort

Montana

14.00%

Sept - 20

Interest only

15,000

14,773

Mixed Use

New York

L+10.50%

Dec - 19

Interest only

99,581

99,660

Senior Housing

United Kingdom

3ML+8.25%

Dec - 19

Principal and interest

41,693

Hotel

California

10.40%

Jan-20

Interest only

20,000

Multifamily Portfolio

Florida

L+11.50%

May-20

Interest only

22,000

21,967

Multifamily Portfolio

Florida

L+11.50%

May-20

Interest only

15,500

15,477

Mixed Use

Various US

L+9.05%

May-20

Interest only

45,000

45,174

Hotel

Arizona

11.50%

Jul-25

Interest only

25,000

Hotel

Washington, DC

L+9.60%

Jul-19

Interest only

20,000

19,978

Condo Development

New York

L+12.75%

Jul-20

Interest only

56,925

56,693

Condo Conversion

New York

L+12.25%

Aug-20

Interest only

59,636

59,442

Mixed Use

New York

L+10.00%

Oct-19

Interest only

30,000

29,926

Hotel

New York

L+5.25%

Sept-20

Interest only

7,573

7,513

Destination Resort

Various US cities

L+8.90%

May-22

Interest only

75,000

72,877

Multifamily

New York

L+10.50%

May-19

Interest only

55,000

54,775

Hotel

New York

L+12.00%

Mar-17

Interest only

50,000

50,228

Condo Pre-development

United Kingdom

3ML+12.50%

Dec-17

Interest only

123,400

Multifamily

North Dakota

L+5.90%

Nov-19

Interest only

5,000

—

Condo Conversion

New York

L+10.75%

Jul-20

Interest only

48,944

48,399

Healthcare Portfolio

Various US

L+10.00%

Oct-21

Interest only

130,000

128,856

Mixed Use

New York

L+12.00%

Oct-20

Interest only

30,175

29,924

Total subordinate loans

$1,061,229

$1,051,236

Total

$2,720,344

$2,693,092

)


(1)	Assumes all extension options are exercised.


(2)	Subject to prior liens.


(3)	The aggregate cost for federal income tax purposes is $2,708,092.

The following table summarizes the changes in the carrying amounts of mortgage loans during 2016 and 2015.

Reconciliation of Carrying Amount of Loans



	2016			2015
Balance at beginning of year	$	1,925,652		$	1,019,702
Funding of loans	1,127,039			1,366,062
Sales	—			(136,573		)
Collections of principal	(331,189		)	(348,516		)
Participation sold	(24,051		)
Discount accretion	13,656			9,096
Provision for loan losses	(15,000		)	—
Foreign currency loss	(33,383		)	(6,116		)
Payment-in-kind	30,368			21,997
Balance at the close of year	$	2,693,092		$	1,925,652

Participating Mortgages [Member]

Mortgage Loans on Real Estate [Line Items]

Participations Sold

Participations sold represent the interests in loans the Company originated and subsequently partially sold. The Company presents the participations sold as both assets and non-recourse liabilities because the participation does not qualify as a sale according to GAAP. The income earned on the participation sold is recorded as interest income and an identical amount is recorded as interest expense on the Company's consolidated statements of operations.

During January 2015, the Company closed a £34,519 (or $51,996) floating-rate mezzanine loan secured by a portfolio of 44 senior housing facilities located throughout the United Kingdom. During February 2015, the Company closed an additional funding of £20,000 (or $30,672) and participated that balance to an investment fund affiliated with Apollo. During December 2016, the Company qualified for sale accounting with respect to the previous participation sold that was converted to a discrete financial instrument, and therefore deconsolidated the participation sold.

During May 2014, the Company closed a $155,000 floating-rate whole loan secured by the first mortgage and equity interests in an entity that owns a resort hotel in Aruba. During June 2014, the Company syndicated a $90,000 senior participation in the loan and retained a $65,000 junior participation in the loan. During August 2014, both the $90,000 senior participation and the Company's $65,000 junior participation were contributed to a CMBS securitization. In exchange for contributing its $65,000 junior participation, the Company received a CMBS secured solely by the $65,000 junior participation and classified it as CMBS (held-to-maturity) on its consolidated financial statements. At December 31, 2016, the participation had a face amount of $85,082, a carrying amount of $84,979 and a cash coupon of LIBOR plus 440 basis points.