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v3.22.2.2

Notes Receivable, Net and Other | 9 Months Ended
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Sep. 30, 2022
Receivables [Abstract] |
Notes Receivable, net and Other | Notes Receivable, Net and Other Notes receivable, net are summarized in the table below (dollars in thousands):
| Interest Rate |  | September 30, 2022 |  | December 31, 2021
Construction Financing Note (1) (4) |  |  |  |  |
Face amount | 7.0 | % |  | $ | — |  |  | $ | 4,000 |
Certificate of Occupancy Note (2) (4) |  |  |  |  |
Face amount | 7.0 | % |  | $ | 5,250 |  |  | $ | 5,250 |
Discount (3) |  |  | (275) |  |  | (527) |
|  |  | 4,975 |  |  | 4,723 |
Notes receivable, net |  |  | $ | 4,975 |  |  | $ | 8,723 |
____________________________________ (1) The outstanding principal balance and all accrued and unpaid interest was due and payable on or before the earlier of (i) the buyer closing on third-party institutional financing for the construction of improvements on the property, (ii) three years after the development commencement date, or (iii) July 9, 2024. On March 4, 2022, the Construction Financing Note was paid in full in the amount of $4.0 million. (2) The outstanding principal balance and all accrued and unpaid interest is due and payable on or before July 9, 2025. (3) The discount represents the imputed interest during the interest-free period. Interest begins accruing on July 9, 2023. (4) The notes receivable are secured by the 1.65-acre land parcel adjacent to the Hilton St. Petersburg Bayfront. No cash interest income was recorded for the three and nine months ended September 30, 2022. Cash interest income of $63,000 was recorded for the three and nine months ended September 30, 2021. We recognized discount amortization income as presented in the table below (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Line Item |  | 2022 |  | 2021 |  | 2022 |  | 2021 |  |
Other income (expense) |  | $ | 86 |  |  | $ | 87 |  |  | $ | 252 |  |  | $ | 379 |  |  |
As of September 30, 2022 and December 31, 2021, the expected credit loss associated with the notes receivables was immaterial. For the three and nine months ended September 30, 2021, we received reimbursement of $80,000 and $320,000, respectively, for parking fees and recognized income of $80,000 and $89,000, respectively, which is included in “other income (expense)” in the consolidated statements of operations while the parking parcel was in development. On August 31, 2021, the parking parcel was completed and we obtained access to utilize the parking parcel. For the three and nine months ended September 30, 2022 and 2021, respectively, we recognized imputed interest income as presented in the table below (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Line Item |  | 2022 |  | 2021 |  | 2022 |  | 2021 |  |
Other income (expense) |  | $ | — |  |  | $ | 54 |  |  | $ | — |  |  | $ | 211 |  |  |
On September 1, 2022, the Company sold the Sheraton Ann Arbor. See note 5. Under the purchase and sale agreement, $1.5 million of the sales price is deferred, interest free, until the last day of the 24th month following the closing date (September 30, 2024). The components of the receivable are summarized below (dollars in thousands):
| Imputed Interest Rate |  | September 30, 2022 |  |
Deferred Receivable |  |  |  |  |
Face amount | 10.0 | % |  | $ | 1,500 |  |  |
Discount (1) |  |  | (271) |  |  |
|  |  | 1,229 |  |  |
Total |  |  | $ | 1,229 |  |  |
(1) The discount represents the imputed interest during the interest-free period. We recognized discount amortization income as presented in the table below (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Line Item |  | 2022 |  |  |  | 2022 |  |  |  |
Other income (expense) |  | $ | 10 |  |  |  |  | $ | 10 |  |  |  |  |
We review receivables for impairment each reporting period. Under the model, the Company estimates credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument and is required to record a credit loss expense (or reversal) in each reporting period. Our assessment of impairment is based on considerable management judgment and assumptions. No impairment charges were recorded for the three and nine months ended September 30, 2022.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI https://asc.fasb.org/subtopic&trid=2196772 + Details
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- References No definition available. + Details
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