Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2024

The following table presents the carrying value and estimated fair value of our financial instruments not carried at fair value on our condensed consolidated balance sheets at March 31, 2024 and December 31, 2023 ($ in thousands):


	March 31, 2024				December 31, 2023
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Cash and cash equivalents	$	161,190	$	161,190	$	225,438	$	225,438
Commercial mortgage loans, net	7,846,460		7,722,188		7,925,359		7,813,304
Subordinate loans, net	303,965		303,909		432,734		432,458

Secured debt arrangements, net	(5,596,967)		(5,596,967)		(5,538,476)		(5,538,476)
Term loans, net	(757,912)		(761,099)		(759,150)		(754,197)
Senior secured notes, net	(495,835)		(418,125)		(495,637)		(418,750)

Debt related to real estate owned, held for investment, net	(161,878)		(161,878)		(161,586)		(161,586)

To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, are used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount we could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts. Estimates of fair value for cash and cash equivalents, convertible senior notes, net, and Term Loans, net are measured using observable Level I inputs as defined in "Note 3 - Fair Value Disclosure." Estimates of fair value for all other financial instruments in the table above are measured using significant estimates, or unobservable Level III inputs as defined in "Note 3 - Fair Value Disclosure."