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Notes Receivable, Net and Other | 9 Months Ended
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Sep. 30, 2024
Receivables [Abstract] |
Notes Receivable, Net and Other | Note Receivable, Net and Other As of September 30, 2024, the Company has a note receivable of $10.2 million, which consists of advances of $8.8 million and accrued interest of $1.3 million with the manager of 815 Commerce MM, who also holds a non-controlling interest in 815 Commerce MM. See discussion in note 2. As of September 30, 2024, the Company has a maximum note commitment of up to $9.5 million, which is the total of balancing deposits required by the property construction lender. The note bears interest at 18.0% per annum. The note receivable is payable within 30 days after demand. If the manager fails upon demand to repay the note receivable with interest, the Company will have the right to convert the unpaid principal plus all accrued interest thereon to an additional capital contribution in which case the deemed additional capital contributions by the manager will be deemed to have not occurred and the percentage interests and the residual sharing percentages of the members shall be adjusted. The note receivable may be prepaid in whole or in part. The following table summarizes the note receivable (dollars in thousands):
| Interest Rate |  | September 30, 2024 |  | December 31, 2023
Note receivable | 18.0 | % |  | $ | 10,164 |  |  | $ | 7,369 |
The following table summarizes the interest income associated with the note receivable (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |  |  |  |
Line Item |  | 2024 |  | 2023 |  | 2024 |  | 2023 |  |  |  |
Other income (expense) |  | $ | 370 |  |  | $ | 192 |  |  | $ | 817 |  |  | $ | 212 |  |  |  |  |
On September 1, 2022, the Company sold the Sheraton Ann Arbor. Under the purchase and sale agreement, $1.5 million of the sales price was deferred, interest free, until the last day of the 24th month following the closing date (September 30, 2024). Payment was received on August 30, 2024. The components of the receivable, which were included in “other assets” in the consolidated balance sheets, are summarized below (dollars in thousands):
| Imputed Interest Rate |  | September 30, 2024 |  | December 31, 2023 |  |
Deferred Consideration |  |  |  |  |  |  |
Face amount | 10.0 | % |  | $ | — |  |  | $ | 1,500 |  |  |
Discount (1) |  |  | — |  |  | (108) |  |  |
|  |  | $ | — |  |  | $ | 1,392 |  |  |
_______________ (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 |  | 2024 |  | 2023 |  |  | 2024 |  | 2023 |  |
Other income (expense) |  | $ | 37 |  |  | $ | 34 |  |  |  | $ | 108 |  |  | $ | 98 |  |  |
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, 2024 and 2023.

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- Definition The entire disclosure for claims held for amounts due to 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 -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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