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Notes Receivable and Current Expected Credit Losses (Tables) | 6 Months Ended
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Jun. 30, 2024
Receivables [Abstract] |
Schedule of Notes Receivable Outstanding | The Company had the following notes receivable outstanding as of June 30, 2024 and December 31, 2023 ($ in thousands):
|  | Outstanding loan amount |  |  |  |  |  | Interest compounding
|  | June 30, 2024 |  | December 31, 2023 |  |  |  |
Real Estate Financing Project |  | Principal |  | Accrued interest and fees |  | Total loan amount(a) |  | Total loan amount(a) |  | Maximum principal commitment |  | Interest rate
Solis City Park II |  | $ | 20,594 |  |  | $ | 5,075 |  |  | $ | 25,669 |  |  | $ | 24,313 |  |  | $ | 20,594 |  |  | 13.0 | % |  | Annually
Solis Gainesville II |  | 19,595 |  |  | 4,247 |  |  | 23,842 |  |  | 22,268 |  |  | 19,595 |  |  | 14.0 | % | (b) | Annually
Solis Kennesaw |  | 30,050 |  |  | 4,793 |  |  | 34,843 |  |  | 15,922 |  |  | 37,870 |  |  | 14.0 | % | (b) | Annually
Solis Peachtree Corners |  | 15,546 |  |  | 2,849 |  |  | 18,395 |  |  | 11,092 |  |  | 28,440 |  |  | 15.0 | % | (b) | Annually
The Allure at Edinburgh |  | 9,228 |  |  | 1,291 |  |  | 10,519 |  |  | 9,830 |  |  | 9,228 |  |  | 15.0 | % | (c) | None
Total mezzanine & preferred equity |  | $ | 95,013 |  |  | $ | 18,255 |  |  | 113,268 |  |  | 83,425 |  |  | $ | 115,727 |  |  |  |  |
Other notes receivable |  |  |  |  |  | 12,592 |  |  | 12,219 |  |  |  |  |  |  |
Allowance for credit losses(d) |  |  |  |  |  | (1,682) |  |  | (1,472) |  |  |  |  |  |  |
Total notes receivable |  |  |  |  |  | $ | 124,178 |  |  | $ | 94,172 |  |  |  |  |  |  |
________________________________________ (a) Outstanding loan amounts include any accrued and unpaid interest, and accrued fees, as applicable. (b) The interest rate varies over the life of the loans and the Company also earns an unused commitment fee on amounts not drawn on the loans. (c) The interest rate varies over the life of the loan. (d) The amounts as of June 30, 2024 and December 31, 2023 exclude $0.4 million and $0.7 million, respectively, of Current Expected Credit Losses (“CECL”) allowance that relates to the unfunded commitments, which were recorded as a liability under other liabilities in the consolidated balance sheets.
Schedule of Interest Income | The Company recognized interest income for the three and six months ended June 30, 2024 and 2023 as follows (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30, |
Real Estate Financing Project |  | 2024 |  | 2023 |  | 2024 |  | 2023 |
Solis City Park II |  | $ | 608 |  | (a) | $ | 732 |  | (a) | $ | 1,355 |  | (a) | $ | 1,402 |  | (a)
Solis Gainesville II |  | 786 |  | (a)(b) | 654 |  | (a)(b) | 1,572 |  | (a)(b) | 1,247 |  | (a)(b)
Solis Kennesaw |  | 1,315 |  | (a)(b) | 465 |  | (a) | 2,551 |  | (a)(b) | 465 |  | (a)
Solis Peachtree Corners |  | 913 |  | (a)(b) | — |  |  | 1,800 |  | (a)(b) | — |  |
The Allure at Edinburgh |  | 344 |  |  | — |  |  | 688 |  |  | — |  |
The Interlock(c) |  | — |  | (a) | 1,374 |  | (a) | — |  | (a) | 3,647 |  | (a)
Total mezzanine & preferred equity |  | 3,966 |  |  | 3,225 |  |  | 7,966 |  |  | 6,761 |  |
Other interest income |  | 666 |  |  | 189 |  |  | 1,292 |  |  | 372 |  |
Total interest income |  | $ | 4,632 |  |  | $ | 3,414 |  |  | $ | 9,258 |  |  | $ | 7,133 |  |
________________________________________ (a) Includes recognition of interest income related to fee amortization. (b) Includes recognition of unused commitment fees. (c) This note receivable was redeemed on May 19, 2023 in connection with the Company’s acquisition of The Interlock.
Schedule Allowance for Credit Losses on Financing Receivables | Changes in the allowance for the six months ended June 30, 2024 and 2023 were as follows (in thousands):
|  | Six Months Ended June 30, 2024 |  | Six Months Ended June 30, 2023
|  | Funded |  | Unfunded |  | Total |  | Funded |  | Unfunded |  | Total
Beginning balance |  | $ | 1,472 |  |  | $ | 732 |  |  | $ | 2,204 |  |  | $ | 1,292 |  |  | $ | 338 |  |  | $ | 1,630 |
Unrealized credit loss provision (release) |  | 210 |  |  | (355) |  |  | (145) |  |  | 412 |  |  | 231 |  |  | 643 |
Release due to redemption |  | — |  |  | — |  |  | — |  |  | (465) |  |  | — |  |  | (465) |
Ending balance |  | $ | 1,682 |  |  | $ | 377 |  |  | $ | 2,059 |  |  | $ | 1,239 |  |  | $ | 569 |  |  | $ | 1,808 |

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- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(4)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(3)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 + Details
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