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Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net (Tables)
 3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
Schedule of Loan Portfolio
Our loan portfolio was comprised of the following at March 31, 2022 and December 31, 2021 ($ in thousands):
Loan TypeMarch 31, 2022December 31, 2021
Commercial mortgage loans, net(1)
$7,586,554 $7,012,312 
Subordinate loans and other lending assets, net 763,488 844,948 
Carrying value, net$8,350,042 $7,857,260 
  ———————
(1)Includes $85.5 million and $97.8 million in 2022 and 2021, respectively, of contiguous financing structured as subordinate loans.
Schedule of Activity Related to Loan Investment Portfolio
Activity relating to our loan portfolio for the three months ended March 31, 2022 was as follows ($ in thousands):
Principal
Balance
Deferred Fees/Other Items (1)
Specific CECL Allowance
Carrying Value, Net(2)
December 31, 2021$8,072,377 $(36,529)$(145,000)$7,890,848 
New funding of loans1,196,111 — — 1,196,111 
Add-on loan fundings(3)
145,888 — — 145,888 
Loan repayments and sales(725,508)— — (725,508)
Gain (loss) on foreign currency translation(101,297)1,036 — (100,261)
Specific CECL Allowance— — (30,000)(30,000)
Deferred fees and other items— (20,461)— (20,461)
PIK interest and amortization of fees7,083 7,719 — 14,802 
March 31, 2022$8,594,654 $(48,235)$(175,000)$8,371,419 
General CECL Allowance(4)
(21,377)
Carrying value, net$8,350,042 
———————
(1)Other items primarily consist of purchase discounts or premiums, cost recovery interest, exit fees, deferred origination expenses, and the activity of unconsolidated joint ventures.
(2)December 31, 2021 carrying value excludes General CECL Allowance.
(3)Represents fundings committed prior to 2022.
(4)$3.9 million of the General CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.
Schedule of Overall Statistics for the Loan Portfolio The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands):
March 31, 2022December 31, 2021
Number of loans 67 67 
Principal balance$8,594,654 $8,072,377 
Carrying value, net$8,350,042 $7,857,260 
Unfunded loan commitments(1)
$1,800,235 $1,357,122 
Weighted-average cash coupon(2)
4.5 %4.5 %
Weighted-average remaining fully-extended term(3)
3.0 years2.9 years
Weighted-average expected term(4)
2.0 years2.3 years
———————
(1)Unfunded loan commitments are funded to finance construction costs, tenant improvements, leasing commissions, or carrying costs. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date.
(2)For floating rate loans, based on applicable benchmark rates as of the specified dates. For loans placed on non-accrual or cost recovery the interest rate used in calculating weighted-average cash coupon is 0%.
(3)Assumes all extension options are exercised.
(4)Expected term represents our estimated timing of repayments as of the specified dates. Excludes risk-rated 5 loans.
Schedule of Mortgage Loans on Real Estate
The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):
March 31, 2022December 31, 2021
Property TypeCarrying
Value
% of
Portfolio(1)
Carrying
Value
% of
Portfolio(1)
Office$1,980,780 23.7 %$1,700,779 21.6 %
Hotel1,949,106 23.3 1,875,439 23.8 
Residential-for-sale896,714 10.7 956,617 12.1 
Healthcare637,570 7.6 316,321 4.0 
Retail Center508,117 6.1 414,740 5.3 
Residential-for-rent470,861 5.6 477,569 6.1 
Mixed Use417,967 5.0 269,839 3.4 
Industrial364,953 4.4 377,068 4.8 
Urban Retail358,221 4.3 711,592 9.0 
Other(2)
787,130 9.3 790,884 9.9 
Total$8,371,419 100.0 %$7,890,848 100.0 %
General CECL Allowance(3)
(21,377)(33,588)
Carrying value, net$8,350,042 $7,857,260 

(1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance.
(2)Other property types include parking garages (3.1%), caravan parks (2.6%), multifamily development (2.1%) and urban predevelopment (1.5%) in 2022, and parking garages (3.3%), caravan parks (2.8%), multifamily development (2.2%), and urban predevelopment (1.6%) in 2021.
(3)$3.9 million and $3.1 million of the General CECL Allowance for 2022 and 2021, 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):
March 31, 2022December 31, 2021
Geographic LocationCarrying
Value
% of
Portfolio(1)
Carrying
Value
% of
Portfolio(1)
New York City$2,295,383 27.4 %$2,000,661 25.4 %
United Kingdom1,989,250 23.8 2,297,286 29.1 
Other Europe(2)
1,494,435 17.9 1,295,870 16.4 
Southeast769,205 9.2 708,920 9.0 
Midwest681,237 8.1 689,274 8.7 
West341,569 4.1 356,097 4.5 
Other(3)
800,340 9.5 542,740 6.9 
Total$8,371,419 100.0 %$7,890,848 100.0 %
General CECL Allowance(4)
(21,377)(33,588)
Carrying value, net$8,350,042 $7,857,260 

(1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance.
(2)Other Europe includes Germany (5.6%), Italy (4.3%), Spain (3.9%), Sweden (3.3%), and Ireland (0.8%) in 2022 and Germany (6.1%), Sweden (3.6%), Spain (3.3%), Italy (2.6%), and Ireland (0.8%) in 2021.
(3)Other includes Northeast (5.9%), Southwest (1.9%), Mid-Atlantic (1.4%) and Other (0.3%) in 2022 and Southwest (3.5%), Northeast (1.5%), Mid-Atlantic (1.6%), and Other (0.3%) in 2021.
(4)$3.9 million and $3.1 million of the General CECL Allowance for 2022 and 2021, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.
Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings
The following tables allocate the carrying value of our loan portfolio based on our internal risk ratings and date of origination at the dates indicated ($ in thousands):
March 31, 2022
Year Originated
Risk RatingNumber of LoansTotal% of Portfolio20222021202020192018Prior
1— $— — %$— $— $— $— $— $— 
21 32,000 0.4 %— — — — — 32,000 
361 7,774,143 92.8 %994,971 2,636,290 669,291 1,822,835 796,136 854,620 
41 106,313 1.3 %— — — — — 106,313 
54 458,963 5.5 %— — — — — 458,963 
Total67 $8,371,419 100.0 %$994,971 $2,636,290 $669,291 $1,822,835 $796,136 $1,451,896 
General CECL Allowance(1)
(21,377)
Total carrying value, net$8,350,042 
Weighted Average Risk Rating3.1

December 31, 2021
Year Originated
Risk RatingNumber of LoansTotal% of Portfolio20212020201920182017Prior
1— $— — %$— $— $— $— $— 
21 32,000 0.4 %— — — — — 32,000 
362 7,372,081 93.5 %2,622,248 644,404 2,307,948 828,270 389,264 579,947 
41 81,980 1.0 %— — — — 81,980 — 
53 404,787 5.1 %— — — — 177,483 227,304 
Total67 $7,890,848 100.0 %$2,622,248 $644,404 $2,307,948 $828,270 $648,727 $839,251 
General CECL Allowance(1)
(33,588)
Total carrying value, net$7,857,260 
Weighted Average Risk Rating3.1
———————
(1)$3.9 million and $3.1 million of the General CECL Allowance for 2022 and 2021, respectively, is excluded from the tables above because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet
Financing Receivable Cost Recovery The following table summarizes the loans with Specific CECL Allowances that have been recorded on our portfolio as of March 31, 2022 ($ in thousands):
TypeProperty typeLocationAmortized cost prior to Specific CECL Allowance
Specific CECL Allowance(1)
Amortized costInterest recognition status/ as of date
Mortgage
Urban Predevelopment(2)(3)
Miami, FL$190,610$68,000$122,610Cost Recovery/ 3/1/2020
Multifamily Development(2)
Brooklyn, NY189,77510,000179,775Cost Recovery/ 3/1/2020
Retail Center(4)(5)
Cincinnati, OH171,59867,000104,598 Cost Recovery/ 10/1/2019
Mortgage total:$551,983$145,000$406,983
Mezzanine
Residential-for-Sale(6)
Manhattan, NY$81,980$30,000$51,980Non-accrual/ 7/1/2021
Mezzanine total:$81,980$30,000$51,980
Total:$633,963$175,000$458,963
———————
(1)During the three months ended March 31, 2022, we recorded $30.0 million of Specific CECL Allowance.
(2)The fair value of this collateral was determined by assuming rent per square foot ranging from $48 to $215 and a capitalization rate ranging from 5.0% to 5.5%.
(3)In October 2020, we entered a joint venture with CCOF Design Venture, LLC, which owns the underlying properties that secure our $187.9 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 as we do not have the power to direct the entity's activities. The related profit and loss from the joint venture was immaterial for the three months ended March 31, 2022 and 2021.
(4)The fair value of retail collateral was determined by applying a capitalization rate of 8.0%.
(5)In September 2018, we entered a joint venture with Turner Consulting II, LLC ("Turner Consulting"), through an entity which owns the underlying property that secures our loan. Turner Consulting contributed 10% of the venture’s equity and we contributed 90%. The entity was deemed to be a VIE and we determined that we are not the primary beneficiary of that VIE as we do not have the power to direct the entity's activities. During the three months ended March 31, 2022 and 2021, $0.2 million and $0.3 million, respectively, of interest paid was applied towards reducing the carrying value of the loan. The related profit and loss from the joint venture was immaterial for the three months ended March 31, 2022 and 2021.
(6)The fair value of the residential-for-sale collateral was determined by making certain projections and assumptions with respect to future performance and a discount rate of 10%.
Schedule of CECL Reserves
The following schedule sets forth our General CECL Allowance as of March 31, 2022 and December 31, 2021 ($ in thousands):
March 31, 2022December 31, 2021
Commercial mortgage loans, net$16,663 $22,554 
Subordinate loans and other lending assets, net4,714 11,034 
Unfunded commitments(1)
3,928 3,106 
Total General CECL Allowance$25,305 $36,694 
 ———————
(1)The General CECL Allowance on unfunded commitments is recorded as a liability on our condensed consolidated balance sheet within accounts payable, accrued expenses and other liabilities.
The following schedule illustrates the quarterly changes in CECL Allowances for the three months ended March 31, 2022 and 2021, respectively ($ in thousands):
Specific CECL AllowanceGeneral CECL AllowanceTotal CECL AllowanceCECL Allowance as % of Amortized Cost
FundedUnfundedTotalGeneral Total
December 31, 2021$145,000$33,588$3,106$36,694$181,6940.49%2.26%
Changes:
Q1 Allowance (Reversals)30,000(12,211)822(11,389)18,611
March 31, 2022$175,000$21,377$3,928$25,305$200,3050.32%2.34%

Specific CECL AllowanceGeneral CECL AllowanceTotal CECL AllowanceCECL Allowance as % of Amortized Cost
FundedUnfundedTotalGeneral 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 %