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Notes Receivable
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Notes Receivable Note Receivable
As of December 31, 2024, the Company has a note receivable of $10.6 million, which consists of advances of $8.8 million and accrued interest of $1.7 million with the manager of 815 Commerce MM, who also holds a non-controlling interest in 815 Commerce MM. See discussion in note 2. 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 RateDecember 31, 2024December 31, 2023
Note receivable
18.0 %$10,565 $7,369 
The following table summarizes the interest income associated with the note receivable (in thousands):
Year Ended December 31,
Line Item20242023
Other income (expense)$1,218 $501 
On September 1, 2022, the Company sold the Sheraton Ann Arbor. Under the purchase and sale agreement, $1.5 million of the sales price was deferred, interest free, until the last day of the 24th month following the closing date (September 30, 2024). Payment was received on August 29, 2024. The components of the receivable, which were included in “other assets” in the consolidated balance sheets, are summarized below (dollars in thousands):
Imputed Interest RateDecember 31, 2024December 31, 2023
Deferred Consideration
Face amount10.0 %$— $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):
Year Ended December 31,
Line Item202420232022
Other income (expense)$108 $132 $41