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Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net (Tables) | 6 Months Ended
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Jun. 30, 2021
Receivables [Abstract] |
Schedule of Loan Portfolio | Our loan portfolio was comprised of the following at June 30, 2021 and December 31, 2020 ($ in thousands):
Loan Type |  | June 30, 2021 |  | December 31, 2020
Commercial mortgage loans, net (1) |  | $ | 6,653,197 |  |  | $ | 5,451,084 |
Subordinate loans and other lending assets, net |  | 866,908 |  |  | 1,045,893 |
Carrying value, net |  | $ | 7,520,105 |  |  | $ | 6,496,977 |
——————— (1)Includes $146.5 million and $136.1 million in 2021 and 2020, respectively, of contiguous financing structured as subordinate loans.
Schedule of Activity Related to Loan Investment Portfolio | Activity relating to our loan portfolio, for the six months ended June 30, 2021, was as follows ($ in thousands):
|  | Principal Balance |  | Deferred Fees/Other Items (1) |  | Specific CECL Allowance |  | Carrying Value, Net(2)
December 31, 2020 |  | $ | 6,728,424 |  |  | $ | (18,345) |  |  | $ | (175,000) |  |  | $ | 6,535,079 |
New loan fundings |  | 1,322,016 |  |  | — |  |  | — |  |  | 1,322,016 |
Add-on loan fundings (3) |  | 264,486 |  |  | — |  |  | — |  |  | 264,486 |
Loan repayments and sales |  | (552,651) |  |  | — |  |  | — |  |  | (552,651) |
Gain (loss) on foreign currency translation |  | (5,027) |  |  | 166 |  |  | — |  |  | (4,861) |
Specific CECL Allowance |  | — |  |  | — |  |  | 30,000 |  |  | 30,000 |
Realized loss on investment |  | (20,000) |  |  | — |  |  | — |  |  | (20,000) |
Transfer to real estate owned |  | (45,448) |  |  | 159 |  |  | — |  |  | (45,289) |
Deferred fees |  | — |  |  | (17,061) |  |  | — |  |  | (17,061) |
PIK interest and amortization of fees |  | 34,502 |  |  | 12,083 |  |  | — |  |  | 46,585 |
June 30, 2021 |  | $ | 7,726,302 |  |  | $ | (22,998) |  |  | $ | (145,000) |  |  | $ | 7,558,304 |
General CECL Allowance (4) |  |  |  |  |  |  |  | (38,199) |
Carrying value, net |  |  |  |  |  |  |  | $ | 7,520,105 |
——————— (1)Other items primarily consist of purchase discounts or premiums, cost recovery interest, exit fees and deferred origination expenses. (2)December 31, 2020 carrying value excludes General CECL Allowance. (3)Represents fundings for loans closed prior to 2021. (4)$2.4 million of the General CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.
Schedule of Overall Statistics for the Loan Portfolio | The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands):
|  | June 30, 2021 |  | December 31, 2020
Number of loans |  | 68 |  |  | 67 |
Principal balance |  | $ | 7,726,302 |  |  | $ | 6,728,424 |
Carrying value, net |  | $ | 7,520,105 |  |  | $ | 6,496,977 |
Unfunded loan commitments (1) |  | $ | 1,258,306 |  |  | $ | 1,399,989 |
Weighted-average cash coupon (2) |  | 5.4 | % |  | 5.7 | %
Weighted-average remaining fully-extended term (3) |  | 2.8 years |  | 2.8 years
Weighted-average expected term (4) |  | 2.1 years |  | 2.1 years
——————— (1)Unfunded loan commitments are funded to finance construction costs, tenant improvements, leasing commissions, or carrying costs. 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. For loans placed on non-accrual or cost recovery the interest rate used in calculating weighted-average cash coupon is 0%. (3)Assumes all extension options are exercised. (4)Expected term represents our estimated timing of repayments as of June 30, 2021 and December 31, 2020, respectively. Excludes risk-rated 5 loans.
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):
|  | June 30, 2021 |  | December 31, 2020
Property Type |  | Carrying Value |  | % of Portfolio(1) |  | Carrying Value |  | % of Portfolio(1)
Office |  | $ | 1,969,597 |  |  | 26.1 | % |  | $ | 1,911,145 |  |  | 29.2 | %
Hotel |  | 1,520,275 |  |  | 20.1 |  |  | 1,576,369 |  |  | 24.1 |
Residential-for-sale |  | 835,187 |  |  | 11.0 |  |  | 982,838 |  |  | 15.0 |
Urban Retail |  | 820,466 |  |  | 10.9 |  |  | 655,456 |  |  | 10.0 |
Industrial |  | 672,537 |  |  | 8.9 |  |  | 228,918 |  |  | 3.5 |
Mixed Use |  | 238,702 |  |  | 3.2 |  |  | 217,160 |  |  | 3.3 |
Healthcare |  | 367,120 |  |  | 4.9 |  |  | 369,676 |  |  | 5.7 |
Urban Predevelopment |  | 52,520 |  |  | 0.7 |  |  | 298,909 |  |  | 4.6 |
Other |  | 1,081,900 |  |  | 14.2 |  |  | 294,608 |  |  | 4.6 |
Total |  | $ | 7,558,304 |  |  | 100.0 | % |  | $ | 6,535,079 |  |  | 100.0 | %
General CECL Allowance (2) |  | (38,199) |  |  |  |  | (38,102) |  |  |
Carrying value, net |  | $ | 7,520,105 |  |  |  |  | $ | 6,496,977 |  |  |
——————— (1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance. (2)$2.4 million and $3.4 million of the General CECL Allowance for 2021 and 2020, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet. Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):
|  | June 30, 2021 |  | December 31, 2020
Geographic Location |  | Carrying Value |  | % of Portfolio(1) |  | Carrying Value |  | % of Portfolio(1)
New York City |  | $ | 2,355,270 |  |  | 31.2 | % |  | $ | 2,370,337 |  |  | 36.3 | %
United Kingdom |  | 1,637,480 |  |  | 21.7 |  |  | 1,263,264 |  |  | 19.3 |
Midwest |  | 737,492 |  |  | 9.8 |  |  | 552,537 |  |  | 8.5 |
Southeast |  | 655,490 |  |  | 8.7 |  |  | 581,301 |  |  | 8.9 |
West |  | 552,475 |  |  | 7.3 |  |  | 749,985 |  |  | 11.5 |
Northeast |  | 138,952 |  |  | 1.8 |  |  | 103,567 |  |  | 1.6 |
Other |  | 1,481,145 |  |  | 19.5 |  |  | 914,088 |  |  | 13.9 |
Total |  | $ | 7,558,304 |  |  | 100.0 | % |  | $ | 6,535,079 |  |  | 100.0 | %
General CECL Allowance (2) |  | (38,199) |  |  |  |  | (38,102) |  |  |
Carrying value, net |  | $ | 7,520,105 |  |  |  |  | $ | 6,496,977 |  |  |
——————— (1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance. (2)$2.4 million and $3.4 million of the General CECL Allowance for 2021 and 2020, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.
Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings | The following tables allocate the carrying value of our loan portfolio based on our internal risk ratings and date of origination at the dates indicated ($ in thousands):
June 30, 2021
|  |  |  |  |  |  |  |  | Year Originated
Risk Rating |  | Number of Loans |  | Total |  | % of Portfolio |  |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior
1 |  | — |  |  | $ | — |  |  | — | % |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2 |  | 1 |  |  | 32,000 |  |  | 0.4 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 32,000 |
3 |  | 63 |  |  | 7,048,000 |  |  | 93.2 | % |  |  | 1,309,620 |  |  | 486,189 |  |  | 2,680,262 |  |  | 1,202,436 |  |  | 672,655 |  |  | 696,838 |
4 |  | 1 |  |  | 81,060 |  |  | 1.1 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 81,060 |  |  | — |
5 |  | 3 |  |  | 397,244 |  |  | 5.3 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 172,652 |  |  | 224,592 |
Total |  | 68 |  |  | $ | 7,558,304 |  |  | 100.0 | % |  |  | $ | 1,309,620 |  |  | $ | 486,189 |  |  | $ | 2,680,262 |  |  | $ | 1,202,436 |  |  | $ | 926,367 |  |  | $ | 953,430 |
General CECL Allowance |  | (38,199) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total carrying value, net | $ | 7,520,105 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted Average Risk Rating |  | 3.1 |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2020
|  |  |  |  |  |  |  |  | Year Originated
Risk Rating |  | Number of Loans |  | Total |  | % of Portfolio |  |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior
1 |  | — |  |  | $ | — |  |  | — | % |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2 |  | 1 |  |  | 32,000 |  |  | 0.5 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 32,000 |
3 |  | 62 |  |  | 6,129,541 |  |  | 93.8 | % |  |  | 469,586 |  |  | 2,661,017 |  |  | 1,398,479 |  |  | 868,514 |  |  | 88,710 |  |  | 643,235 |
4 |  | — |  |  | — |  |  | — | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
5 |  | 4 |  |  | 373,538 |  |  | 5.7 | % |  |  | — |  |  | — |  |  | — |  |  | 131,050 |  |  | 115,419 |  |  | 127,069 |
Total |  | 67 |  |  | $ | 6,535,079 |  |  | 100.0 | % |  |  | $ | 469,586 |  |  | $ | 2,661,017 |  |  | $ | 1,398,479 |  |  | $ | 999,564 |  |  | $ | 204,129 |  |  | $ | 802,304 |
General CECL Allowance |  | (38,102) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total carrying value, net | $ | 6,496,977 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted Average Risk Rating |  | 3.1 |  |  |  |  |  |  |  |  |  |  |  |  |
Financing Receivable Cost Recovery | The following table summarizes the loans with Specific CECL Allowances that have been recorded on our portfolio as of June 30, 2021 ($ in thousands):
Type | Property type | Location | Amortized cost prior to Specific CECL Allowance | Specific CECL Allowance(1) | Amortized cost | Interest recognition status/ as of date
Mortgage |  |  |  |  |
| Multifamily Development(2)(3) | Brooklyn, NY | $182,652 | $10,000 | $172,652 | Cost Recovery/ 3/1/2020
| Urban Predevelopment(2)(4) | Miami, FL | 187,135 | 68,000 | 119,135 | Cost Recovery/ 3/1/2020
| Retail Center(5)(6) | Cincinnati, OH | 172,457 | 67,000 | 105,457 | Cost Recovery/ 10/1/2019
Mortgage total: |  | $542,244 | $145,000 | $397,244 |
——————— (1)During the three and six months ended June 30, 2021 we reversed $30.0 million of previously recorded Specific CECL Allowances. This is comprised of a $20.0 million reversal as discussed below and the realization of $10.0 million that was a previously recorded Specific CECL Allowance. (2)The fair value of this collateral was determined by assuming rent per square foot ranging from $50 to $215 and a capitalization rate ranging from 5.5% to 5.0%. (3)During the three months ended June 30, 2021, $20.0 million of previously recorded Specific CECL Allowance was reversed primarily related to a more favorable market outlook as compared to when the Specific CECL Allowance was first recorded with respect to the loan. (4)In October 2020, we entered into a joint venture which owns the underlying properties that secure our $180.5 million first mortgage loan. The entity in which we own an interest, and which owns the underlying properties was deemed to be a variable interest entity ("VIE") and we determined that we are not the primary beneficiary of that VIE. The related profit and loss from the joint venture was immaterial for the three and six months ended June 30, 2021. (5)The fair value of retail collateral was determined by applying a capitalization rate of 8.3%. (6)The entity, in which we own an interest and which owns the underlying property, was deemed to be a VIE and we determined that we are not the primary beneficiary of that VIE. As of June 30, 2021 we had recorded $67.0 million of Specific CECL Allowance. During the three and six months ended June 30, 2021, $0.4 million and $0.8 million, respectively, of interest paid was applied towards reducing the carrying value of the loan.
Schedule of CECL Reserves | The following schedule sets out our General CECL Allowance as of June 30, 2021 and December 31, 2020 ($ in thousands):
|  | June 30, 2021 |  | December 31, 2020
Commercial mortgage loans, net |  | $ | 20,191 |  |  | $ | 17,012 |
Subordinate loans and other lending assets, net |  | 18,008 |  |  | 21,090 |
Unfunded commitments(1) |  | 2,444 |  |  | 3,365 |
Total General CECL Allowance |  | $ | 40,643 |  |  | $ | 41,467 |
——————— (1)The General CECL Allowance on unfunded commitments is recorded as a liability on our condensed consolidated balance sheet within accounts payable, accrued expenses and other liabilities The following schedule illustrates the quarterly changes in CECL Allowances f or the six months ended June 30, 2021 and 2020, respectively ($ in thousands):
|  | Specific CECL Allowance |  | General CECL Allowance |  | Total CECL Allowance |  | CECL Allowance as % of Amortized Cost
|  |  | Funded | Unfunded | Total |  |  | General | Total
December 31, 2020 | $ | 175,000 |  |  | $ | 38,102 |  | $ | 3,365 |  | $ | 41,467 |  |  | $ | 216,467 |  |  | 0.67 | % | 3.23 | %
Changes: |  |  |  |  |  |  |  |  |  |
| Q1 Allowance (Reversals) | — |  |  | (1,667) |  | 429 |  | (1,238) |  |  | (1,238) |  |  |  |
March 31, 2021 | $ | 175,000 |  |  | $ | 36,435 |  | $ | 3,794 |  | $ | 40,229 |  |  | $ | 215,229 |  |  | 0.62 | % | 3.06 | %
Changes: |  |  |  |  |  |  |  |  |  |
| Q2 Allowance (Reversals) | (20,000) |  |  | 1,764 |  | (1,350) |  | 414 |  |  | (19,586) |  |  |  |
| Write-offs | (10,000) |  |  | — |  | — |  | — |  |  | (10,000) |  |  |  |
June 30, 2021 | $ | 145,000 |  |  | $ | 38,199 |  | $ | 2,444 |  | $ | 40,643 |  |  | $ | 185,643 |  |  | 0.57 | % | 2.41 | %
|  | Specific CECL Allowance(1) |  | General CECL Allowance |  | Total CECL Allowance |  | CECL Allowance as % of Amortized Cost
|  |  | Funded | Unfunded | Total |  |  | General | Total
December 31, 2019 | $ | 56,981 |  |  | $ | — |  | $ | — |  | $ | — |  |  | $ | 56,981 |  |  | — | % | — | %
Changes: |  |  |  |  |  |  |  |  |  |
| January 1, 2020 - Adoption of CECL Standard | — |  |  | 27,779 |  | 3,088 |  | 30,867 |  |  | 30,867 |  |  |  |
| Q1 Allowances | 150,000 |  |  | 30,494 |  | 2,971 |  | 33,465 |  |  | 183,465 |  |  |  |
March 31, 2020 | $ | 206,981 |  |  | $ | 58,273 |  | $ | 6,059 |  | $ | 64,332 |  |  | $ | 271,313 |  |  | 1.08 | % | 4.05 | %
Changes: |  |  |  |  |  |  |  |  |  |
| Q2 Allowances (Reversals) | 5,500 |  |  | (13,729) |  | (1,940) |  | (15,669) |  |  | (10,169) |  |  |  |
| Write-offs | (15,000) |  |  | — |  | — |  | — |  |  | (15,000) |  |  |  |
June 30, 2020 | $ | 197,481 |  |  | $ | 44,544 |  | $ | 4,119 |  | $ | 48,663 |  |  | $ | 246,144 |  |  | 0.81 | % | 3.71 | %
——————— (1)As of December 31, 2019, amount represents specific loan loss provisions recorded on assets before the adoption of the CECL Standard. After the adoption of the CECL Standard on January 1, 2020, amounts represent Specific CECL Allowances.

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=123577603&loc=SL6953659-111524 + Details
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