Real Estate Owned and Related Debt, Held for Sale

3 Months Ended

Mar. 31, 2021

Real Estate Owned and Related Debt, Held for Sale

In 2017, we originated a subordinate loan junior to a $33.0 million third-party mortgage, secured by a hotel in Anaheim, CA. In December 2020, due to non-performance, we assumed legal title through the execution of a deed-in-lieu. We intend to sell the hotel and, as such, as of the date of the foreclosure, we recorded the hotel property on our condensed consolidated balance sheet at its fair market value. We assumed the obligation of the $33.0 million first mortgage which is classified as debt related to real estate owned, held for sale in our condensed consolidated balance sheet.

As of March 31, 2021 there was an increase in our expected costs to sell the property and we performed a non-recurring fair value measurement. Based upon this measurement, we recorded a $0.6 million impairment during the three months ended March 31, 2021, as realized losses and impairments on real estate owned in our condensed consolidated statement of operations.

The table below details real estate owned and related debt, held for sale, on our condensed consolidated balance sheet ($ in thousands):


	March 31, 2021		December 31, 2020
Real estate owned, held for sale, gross	$	42,905	$	42,905
Impairment on real estate owned, held for sale	(550)		—
Real Estate owned, held for sale, net of impairment	42,355		42,905
Debt related to real estate owned, held for sale	(33,000)		(33,000)
Real estate owned, net	$	9,355	$	9,905