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Commercial Mortgage and Subordinate Loans, Net (Tables)
 9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Schedule of Loan Portfolio
Our loan portfolio was comprised of the following at September 30, 2018 and December 31, 2017 ($ in thousands):
Loan Type
 
September 30, 2018
 
December 31, 2017
Commercial mortgage loans, net
 
$
3,723,550

 
$
2,653,826

Subordinate loans, net
 
1,104,496

 
1,025,932

Total loans, net
 
$
4,828,046

 
$
3,679,758
Activity Related to Loan Investment Portfolio
Activity relating to our loan investment portfolio, for the nine months ended September 30, 2018, was as follows ($ in thousands):
 
 
Principal Balance
 
Deferred Fees/Other Items (1)
 
Provision for Loan Loss (2)
 
Carrying Value
December 31, 2017
 
$
3,706,169

 
$
(9,430
)
 
$
(16,981
)
 
$
3,679,758

New loan fundings
 
1,590,123

 
—

 
—

 
1,590,123

Add-on loan fundings (3)
 
175,053

 
—

 
—

 
175,053

Loan repayments
 
(601,041
)
 
—

 
—

 
(601,041
)
Unrealized gain (loss) on foreign currency translation
 
(35,412
)
 
(21
)
 
—

 
(35,433
)
Provision for loan loss (2)
 
—

 
—

 
(5,000
)
 
(5,000
)
Deferred fees and other items (1)
 
—

 
(24,596
)
 
—

 
(24,596
)
PIK interest, amortization of fees and other items (1)
 
29,944

 
19,238

 
—

 
49,182

September 30, 2018
 
$
4,864,836

 
$
(14,809
)
 
$
(21,981
)
 
$
4,828,046

———————
(1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses.
(2) In addition to the $22.0 million provision for loan loss, we recorded an impairment of $3.0 million against an investment previously recorded under other assets on our condensed consolidated balance sheet.
(3) Represents fundings for loans closed prior to 2018.
Schedule of Overall Statistics for the Loan Portfolio
The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands):
 
 
September 30, 2018
 
December 31, 2017
Number of loans
 
68

 
59

Principal balance
 
$
4,864,836

 
$
3,706,169

Carrying value
 
$
4,828,046

 
$
3,679,758

Unfunded loan commitments (1)
 
$
884,178

 
$
435,627

Weighted-average cash coupon (2)
 
8.2
%
 
8.4
%
  ———————
(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, based on applicable benchmark rates as of the specified dates.

Schedule of Mortgage Loans on Real Estate
The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):
 
 
September 30, 2018
 
December 31, 2017
Property Type
 
Carrying
Value
 
% of
Portfolio
 
Carrying
Value
 
% of
Portfolio
Hotel
 
$
1,229,460

 
25.5
%
 
$
645,056

 
17.6
%
Residential-for-sale: inventory (1)
 
602,826

 
12.5
%
 
92,438

 
2.5
%
Residential-for-sale: construction (1)
 
385,303

 
8.0
%
 
349,739

 
9.5
%
Urban Predevelopment
 
677,440

 
14.0
%
 
654,736

 
17.8
%
Office
 
520,926

 
10.8
%
 
513,830

 
14.0
%
Multifamily
 
450,017

 
9.3
%
 
465,057

 
12.6
%
Mixed Use
 
320,984

 
6.6
%
 
354,640

 
9.6
%
Healthcare
 
255,588

 
5.3
%
 
173,870

 
4.7
%
Retail Center
 
202,031

 
4.2
%
 
198,913

 
5.4
%
Other
 
151,471

 
3.1
%
 
154,141

 
4.2
%
Industrial
 
32,000

 
0.7
%
 
77,338

 
2.1
%
Total
 
$
4,828,046

 
100.0
%
 
$
3,679,758

 
100.0
%


(1)
To conform to the current period’s presentation, loans with a combined carrying value of $442.2 million classified as residential-for-sale as of December 31, 2017 were broken out into $349.8 million of residential-for-sale: construction and $92.4 million of residential-for-sale: inventory.

The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):



 
 
September 30, 2018
 
December 31, 2017
Geographic Location
 
Carrying
Value
 
% of
Portfolio
 
Carrying
Value
 
% of
Portfolio
Manhattan, NY
 
$
1,365,211

 
28.3
%
 
$
1,173,833

 
31.9
%
Brooklyn, NY
 
332,372

 
6.9
%
 
357,611

 
9.7
%
Northeast
 
37,410

 
0.8
%
 
100,536

 
2.7
%
Midwest
 
800,196

 
16.6
%
 
683,380

 
18.6
%
Southeast
 
608,925

 
12.6
%
 
531,582

 
14.4
%
West
 
522,818

 
10.8
%
 
227,024

 
6.2
%
Mid Atlantic
 
213,881

 
4.4
%
 
191,976

 
5.2
%
Southwest
 
115,683

 
2.4
%
 
33,615

 
0.9
%
United Kingdom
 
706,342

 
14.6
%
 
303,488

 
8.3
%
Other International
 
125,208

 
2.6
%
 
76,713

 
2.1
%
Total
 
$
4,828,046

 
100.0
%
 
$
3,679,758

 
100.0
%
Carrying Value of Loan Portfolio Based on Internal Risk Ratings
The following table allocates the carrying value of our loan portfolio based on our internal risk ratings at the dates indicated ($ in thousands):
 
 
September 30, 2018
 
December 31, 2017
Risk Rating
 
Number of Loans
 
Carrying Value
 
% of Loan Portfolio
 
Number of Loans
 
Carrying Value
 
% of Loan Portfolio
1
 
—
 
$
—

 
—
%
 
—
 
$
—

 
—
%
2
 
5
 
340,237

 
7
%
 
5
 
399,326

 
10
%
3
 
60
 
4,254,383

 
88
%
 
51
 
3,034,358

 
83
%
4
 
1
 
171,127

 
4
%
 
1
 
168,208

 
5
%
5
 
2
 
62,299

 
1
%
 
2
 
77,866

 
2
%
 
 
68
 
$
4,828,046

 
100
%
 
59
 
$
3,679,758

 
100
%