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Notes Receivable and Current Expected Credit Losses (Tables) | 9 Months Ended
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Sep. 30, 2024
Receivables [Abstract] |
Schedule of Notes Receivable Outstanding | The Company had the following notes receivable outstanding as of September 30, 2024 and December 31, 2023 ($ in thousands):
|  |  |  | Outstanding loan amount |  |  |  |  |  |
|  |  |  | September 30, 2024 |  | December 31, 2023 |  |  |  |  |
Real Estate Financing Project(a) |  | Maturity Date |  | Principal |  | Accrued interest and fees(b) |  | Total loan amount(c) |  | Total loan amount(c) |  | Maximum principal commitment |  | Interest rate | Interest compounding
Solis Gainesville II |  | 10/3/2026 |  | 19,595 |  |  | 5,041 |  |  | 24,636 |  |  | 22,268 |  |  | 19,595 |  |  | 14.0 | % | (d) | Annually
Solis Kennesaw |  | 5/25/2027 |  | 37,870 |  |  | 6,230 |  |  | 44,100 |  |  | 15,922 |  |  | 37,870 |  |  | 14.0 | % | (d) | Annually
Solis Peachtree Corners |  | 10/31/2027 |  | 20,533 |  |  | 3,917 |  |  | 24,450 |  |  | 11,092 |  |  | 28,440 |  |  | 15.0 | % | (d) | Annually
The Allure at Edinburgh |  | 1/16/2028 |  | 9,228 |  |  | 1,639 |  |  | 10,867 |  |  | 9,830 |  |  | 9,228 |  |  | 15.0 | % | (e) | None
Solis City Park II(f) |  | 4/23/2028 |  | — |  |  | — |  |  | — |  |  | 24,313 |  |  | — |  |  | 13.0 | % |  | Annually
Solis North Creek |  | 8/8/2030 |  | 2,364 |  |  | 299 |  |  | 2,663 |  |  | — |  |  | 26,767 |  |  | 12.0 | % | (d) | Annually
Total mezzanine & preferred equity |  | $ | 89,590 |  |  | $ | 17,126 |  |  | 106,716 |  |  | 83,425 |  |  | $ | 121,900 |  |  |  |  |
Other notes receivable |  |  |  |  |  |  |  | 12,787 |  |  | 12,219 |  |  |  |  |  |  |
Allowance for credit losses(g) |  |  |  |  |  | (1,706) |  |  | (1,472) |  |  |  |  |  |  |
Total notes receivable |  |  |  |  |  |  |  | $ | 117,797 |  |  | $ | 94,172 |  |  |  |  |  |  |
________________________________________ (a) The Company does not intend to sell the real estate financing investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. (b) Reflects accrued interest and unused commitment fees, net of discounts due to unamortized equity fees. (c) Outstanding loan amounts include any accrued and unpaid interest, and accrued fees, as applicable. (d) 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. (e) The interest rate varies over the life of the loan. (f) This note receivable was redeemed on July 10, 2024. Refer below under “Solis City Park II” for further details. (g) The amounts as of September 30, 2024 and December 31, 2023 exclude $0.6 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 nine months ended September 30, 2024 and 2023 as follows (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
Real Estate Financing Project |  | 2024 |  | 2023 |  | 2024 |  | 2023 |
Solis Gainesville II |  | $ | 794 |  | (a)(b) | $ | 717 |  | (a)(b) | $ | 2,366 |  | (a)(b) | $ | 1,964 |  | (a)(b)
Solis Kennesaw |  | 1,437 |  | (a)(b) | 1,164 |  | (a) | 3,988 |  | (a)(b) | 1,629 |  | (a)
Solis Peachtree Corners |  | 1,067 |  | (a)(b) | 617 |  | (a)(b) | 2,867 |  | (a)(b) | 617 |  | (a)(b)
The Allure at Edinburgh |  | 348 |  |  | 258 |  |  | 1,036 |  |  | 258 |  |
Solis City Park II(c) |  | 127 |  | (a) | 740 |  | (a) | 1,482 |  | (a) | 2,142 |  | (a)
Solis North Creek |  | 299 |  | (b) | — |  |  | 299 |  | (b) | — |  |
The Interlock(d) |  | — |  |  | — |  |  | — |  |  | 3,647 |  | (a)
Total mezzanine & preferred equity |  | 4,072 |  |  | 3,496 |  |  | 12,038 |  |  | 10,257 |  |
Other interest income |  | 629 |  |  | 194 |  |  | 1,921 |  |  | 566 |  |
Total interest income |  | $ | 4,701 |  |  | $ | 3,690 |  |  | $ | 13,959 |  |  | $ | 10,823 |  |
________________________________________ (a) Includes recognition of interest income related to fee amortization. (b) Includes recognition of unused commitment fees. (c) This note receivable was redeemed on July 10, 2024. Refer below under “Solis City Park II” for further details. (d) 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 nine months ended September 30, 2024 and 2023 were as follows (in thousands):
|  | Nine Months Ended September 30, 2024 |  | Nine Months Ended September 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) |  | 294 |  |  | (181) |  |  | 113 |  |  | 817 |  |  | 519 |  |  | 1,336 |
Release due to redemption |  | (60) |  |  | — |  |  | (60) |  |  | (465) |  |  | — |  |  | (465) |
Ending balance |  | $ | 1,706 |  |  | $ | 551 |  |  | $ | 2,257 |  |  | $ | 1,644 |  |  | $ | 857 |  |  | $ | 2,501 |

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