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Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net (Tables) | 12 Months Ended
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Dec. 31, 2019
Receivables [Abstract] |
Schedule of Loan Portfolio | Our loan portfolio was comprised of the following at December 31, 2019 and 2018 ($ in thousands):
Loan Type |  | December 31, 2019 |  | December 31, 2018
Commercial mortgage loans, net |  | $ | 5,326,967 |  |  | $ | 3,878,981 |
Subordinate loans and other lending assets, net |  | 1,048,126 |  |  | 1,048,612 |
Total loans, net |  | $ | 6,375,093 |  |  | $ | 4,927,593 |
Activity Related to Loan Investment Portfolio | Activity relating to our loan investment portfolio, for the year ended December 31, 2019, was as follows ($ in thousands):
|  | Principal Balance |  | Deferred Fees/Other Items (1) |  | Provision for Loan Loss (2) |  | Carrying Value
December 31, 2018 |  | $ | 4,982,514 |  |  | $ | (17,940 | ) |  | $ | (36,981 | ) |  | $ | 4,927,593 |
New loan fundings |  | 3,019,401 |  |  | — |  |  | — |  |  | 3,019,401 |
Add-on loan fundings (3) |  | 416,056 |  |  | — |  |  | — |  |  | 416,056 |
Loan repayments |  | (2,037,322 | ) |  | — |  |  | — |  |  | (2,037,322 | )
Gain (loss) on foreign currency translation |  | 44,338 |  |  | (689 | ) |  | — |  |  | 43,649 |
Realized loss on investment, net of provision for loan loss reversal (2) |  | (12,513 | ) |  | — |  |  | 15,000 |  |  | 2,487 |
Provision for loan losses |  | — |  |  | — |  |  | (35,000 | ) |  | (35,000 | )
Deferred fees |  | — |  |  | (46,275 | ) |  | — |  |  | (46,275 | )
PIK interest, amortization of fees and other items |  | 55,368 |  |  | 29,136 |  |  | — |  |  | 84,504 |
December 31, 2019 |  | $ | 6,467,842 |  |  | $ | (35,768 | ) |  | $ | (56,981 | ) |  | $ | 6,375,093 |
———————
(1) | Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses, as well as $1.4 million in cost recovery proceeds from a commercial mortgage loan secured by a retail center in Cincinnati, OH.
(2) | In addition to the $57.0 million provision for loan loss, we recorded an impairment of $3.0 million against an investment previously recorded under other assets on our consolidated balance sheet. During the second quarter of 2019, the underlying collateral on a commercial mortgage loan and a contiguous subordinate loan secured by a multifamily property located in Williston, ND was sold resulting in a realized loss of $12.5 million. Consequently, the previously recorded $15.0 million loan loss provision was reversed.
(3) Represents fundings for loans closed prior to 2019.
Schedule of Overall Statistics for the Loan Portfolio | The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands):
|  | December 31, 2019 |  | December 31, 2018
Number of loans |  | 72 |  |  | 69 |
Principal balance |  | $ | 6,467,842 |  |  | $ | 4,982,514 |
Carrying value |  | $ | 6,375,093 |  |  | $ | 4,927,593 |
Unfunded loan commitments (1) |  | $ | 1,952,887 |  |  | $ | 1,095,598 |
Weighted-average cash coupon (2) |  | 6.5 | % |  | 8.4 | %
Weighted-average remaining term (3) |  | 3.3 years |  |  | 2.8 years |
Weighted-average expected maturity (4) |  | 1.8 years |  |  | 1.9 years |
———————
(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.
(3) | Assumes all extension options are exercised.
(4) | Expected maturity represents our estimated timing of repayments as of December 31, 2019.
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):
|  | December 31, 2019 |  | December 31, 2018
Property Type |  | Carrying Value |  | % of Portfolio |  | Carrying Value |  | % of Portfolio
Hotel |  | $ | 1,660,162 |  |  | 26.0 | % |  | $ | 1,286,590 |  |  | 26.1 | %
Office |  | 1,401,400 |  |  | 22.0 | % |  | 832,620 |  |  | 16.9 | %
Residential-for-sale: construction |  | 692,816 |  |  | 10.9 | % |  | 528,510 |  |  | 10.7 | %
Residential-for-sale: inventory |  | 321,673 |  |  | 5.1 | % |  | 577,053 |  |  | 11.7 | %
Urban Retail |  | 643,706 |  |  | 10.1 | % |  | — |  |  | — | %
Urban Predevelopment |  | 409,864 |  |  | 6.4 | % |  | 683,886 |  |  | 13.9 | %
Healthcare |  | 371,423 |  |  | 5.8 | % |  | 156,814 |  |  | 3.2 | %
Other |  | 874,049 |  |  | 13.7 | % |  | 862,120 |  |  | 17.5 | %
Total |  | $ | 6,375,093 |  |  | 100.0 | % |  | $ | 4,927,593 |  |  | 100.0 | %
Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):
|  | December 31, 2019 |  | December 31, 2018
Geographic Location |  | Carrying Value |  | % of Portfolio |  | Carrying Value |  | % of Portfolio
Manhattan, NY |  | $ | 1,793,570 |  |  | 28.1 | % |  | $ | 1,669,145 |  |  | 33.9 | %
Brooklyn, NY |  | 373,917 |  |  | 5.9 | % |  | 346,056 |  |  | 7.0 | %
Northeast |  | 110,771 |  |  | 1.7 | % |  | 23,479 |  |  | 0.5 | %
West |  | 728,182 |  |  | 11.4 | % |  | 614,160 |  |  | 12.5 | %
Midwest |  | 614,337 |  |  | 9.6 | % |  | 631,710 |  |  | 12.8 | %
Southeast |  | 564,166 |  |  | 8.9 | % |  | 559,043 |  |  | 11.3 | %
United Kingdom |  | 1,274,390 |  |  | 20.0 | % |  | 700,460 |  |  | 14.2 | %
Other |  | 915,760 |  |  | 14.4 | % |  | 383,540 |  |  | 7.8 | %
Total |  | $ | 6,375,093 |  |  | 100.0 | % |  | $ | 4,927,593 |  |  | 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):
|  | December 31, 2019 |  | December 31, 2018
Risk Rating |  | Number of Loans |  | Carrying Value |  | % of Loan Portfolio |  | Number of Loans |  | Carrying Value |  | % of Loan Portfolio
1 |  | — |  | $ | — |  |  | — | % |  | — |  | $ | — |  |  | — | %
2 |  | 8 |  | 348,324 |  |  | 5 | % |  | 3 |  | 138,040 |  |  | 3 | %
3 |  | 61 |  | 5,707,555 |  |  | 90 | % |  | 63 |  | 4,573,930 |  |  | 93 | %
4 |  | 1 |  | 182,910 |  |  | 3 | % |  | — |  | — |  |  | — | %
5 |  | 2 |  | 136,304 |  |  | 2 | % |  | 3 |  | 215,623 |  |  | 4 | %
|  | 72 |  | $ | 6,375,093 |  |  | 100 | % |  | 69 |  | $ | 4,927,593 |  |  | 100 | %
Weighted-average risk rating |  |  |  |  |  | 3.0 |  |  |  |  |  |  | 3.1 |

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