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Loans, Held for Investment | 6 Months Ended
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Jun. 30, 2017
Mortgage Loans on Real Estate [Abstract] |
Loans, Held for Investment | Loans, Held for Investment The Company’s loans receivable are comprised of the following:
Loan Type |  | June 30, 2017 |  | December 31, 2016
Commercial mortgage loans, held for investment, net |  | $ | 2,037,971 |  |  | $ | 1,641,856 |
Subordinate loans, held for investment, net |  | 1,240,363 |  |  | 1,051,236 |
Total loans, held for investment, net |  | $ | 3,278,334 |  |  | $ | 2,693,092 |
Activity relating to our loans, held for investment portfolio was as follows:
|  | Principal Balance |  | Deferred Fees/Other Items (1) |  | Provision for Loan Loss (2) |  | Carrying Value
December 31, 2016 |  | 2,720,344 |  |  | (12,252 | ) |  | (15,000 | ) |  | 2,693,092 |
Loan fundings |  | 624,602 |  |  | — |  |  | — |  |  | 624,602 |
Loan repayments |  | (69,192 | ) |  | — |  |  | — |  |  | (69,192 | )
Unrealized gain on foreign currency translation |  | 12,376 |  |  | — |  |  | — |  |  | 12,376 |
Provision for loan loss (2) |  | — |  |  | — |  |  | (1,981 | ) |  | (1,981 | )
Deferred fees and other items (1) |  | — |  |  | (7,141 | ) |  | — |  |  | (7,141 | )
PIK interest, amortization of fees and other items (1) |  | 14,000 |  |  | 12,578 |  |  | — |  |  | 26,578 |
June 30, 2017 |  | 3,302,130 |  |  | (6,815 | ) |  | (16,981 | ) |  | 3,278,334 |
(1) | Other items primarily consist of purchase discounts or premiums, exit fees, and deferred origination expenses.
(2) | In addition to the $1,981 provision for loan loss, the Company recorded an impairment of $3,019 against a related investment previously recorded under other assets on the Company's condensed consolidated balance sheet.
The following table details overall statistics for our loan portfolio:
|  | June 30, 2017 |  | December 31, 2016
Number of loans |  | 52 |  |  | 45 |
Principal balance |  | $ | 3,302,130 |  |  | $ | 2,720,344 |
Carrying value |  | $ | 3,278,334 |  |  | $ | 2,693,092 |
Unfunded loan commitments (1) |  | $ | 119,813 |  |  | $ | 170,365 |
Weighted-average cash coupon (2) |  | 8.55 | % |  | 8.88 | %
(1) | Unfunded loan commitments are primarily funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date.
(2) | For floating rate loans, assumes one-month LIBOR of 1.22% and 0.77%, as of June 30, 2017 and December 31, 2016, respectively.
The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio:
|  | June 30, 2017 |  | December 31, 2016
Property Type |  | Carrying Value |  | % of Portfolio |  | Carrying Value |  | % of Portfolio
Hotel |  | $702,447 |  | 21.4% |  | $408,428 |  | 15.2%
Residential - for sale |  | 547,113 |  | 16.7% |  | 469,997 |  | 17.5%
Urban Retail Predevelopment |  | 583,241 |  | 17.8% |  | 491,187 |  | 18.2%
Office |  | 257,291 |  | 7.8% |  | 255,031 |  | 9.5%
Residential Rental |  | 290,152 |  | 8.9% |  | 309,243 |  | 11.5%
Mixed Use |  | 253,649 |  | 7.7% |  | 134,797 |  | 4.9%
Retail Center |  | 240,902 |  | 7.3% |  | 209,401 |  | 7.8%
Healthcare |  | 172,872 |  | 5.3% |  | 170,549 |  | 6.3%
Industrial |  | 157,040 |  | 4.8% |  | 156,809 |  | 5.8%
Other |  | 73,627 |  | 2.3% |  | 87,650 |  | 3.3%
Total |  | $3,278,334 |  | 100% |  | $2,693,092 |  | 100%
|  | June 30, 2017 |  | December 31, 2016
Geographic Location |  | Carrying Value |  | % of Portfolio |  | Carrying Value |  | % of Portfolio
New York City |  | $1,255,668 |  | 38.3% |  | $1,034,303 |  | 38.4%
Midwest |  | 498,767 |  | 15.2% |  | 405,992 |  | 15.1%
Southeast |  | 596,664 |  | 18.2% |  | 332,276 |  | 12.3%
United Kingdom |  | 252,881 |  | 7.7% |  | 244,756 |  | 9.1%
West |  | 226,977 |  | 6.9% |  | 219,664 |  | 8.2%
Mid Atlantic |  | 198,501 |  | 6.1% |  | 263,717 |  | 9.8%
Southwest |  | 25,000 |  | 0.8% |  | 54,614 |  | 2%
Northeast |  | 181,987 |  | 5.5% |  | 137,770 |  | 5.1%
Other International |  | 41,889 |  | 1.3% |  | — |  | —%
Total |  | $3,278,334 |  | 100% |  | $2,693,092 |  | 100%
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. During the second quarter of 2017, the Company recorded a loan loss provision of $1,981 on a commercial mortgage loan secured by fully-built, for-sale residential condominium units located in Bethesda, MD. In addition to the $1,981 provision for loan loss, the Company recorded an impairment of $3,019 on a related investment previously recorded under other assets on the Company's condensed consolidated balance sheet. The loan loss provision and impairment was based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision and related impairment). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value were sales price per square foot and discount rate which were an average of $678 dollars per square foot across properties and 15%, respectively. Effective April 1, 2017, the Company has ceased accruing all interest associated with the loan and accounts for the loan on a cost-recovery basis (all proceeds are applied towards the loan balance). During 2016, the Company recorded a loan loss provision of $10,000 on a multifamily commercial mortgage loan and $5,000 on a multifamily subordinate loan secured by a multifamily property located in Williston, ND. The loan loss provision was based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value were terminal capitalization rate and discount rate which were 11% and 10%, respectively. The Company has ceased accruing payment in kind ("PIK") interest associated with the loan and recognizing interest income upon receipt of cash. As of June 30, 2017, the aggregate loan loss provision was $11,981 and $5,000 for commercial mortgage loans and subordinate loans, respectively. As of December 31, 2016, the aggregate loan loss provision was $10,000 and $5,000 for commercial mortgage loans and subordinate loans, respectively.

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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 948 -SubTopic 310 -URI http://asc.fasb.org/subtopic&trid=2176522 + Details
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