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Loans Held for Investment (Tables) | 12 Months Ended
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Dec. 31, 2024
Receivables [Abstract] |
Schedule of Loans | The table below provides overall statistics for our loan portfolio as of December 31, 2024 and 2023:
|  | As of December 31,
|  | 2024 |  | 2023
Number of loans |  | 21 |  | 24
Total loan commitments |  | $ | 641,213 |  | $ | 670,293
Unfunded loan commitments (1) |  | $ | 30,402 |  | $ | 40,401
Principal balance |  | $ | 610,811 |  | $ | 629,892
Carrying value |  | $ | 601,842 |  | $ | 622,086
Weighted average coupon rate |  | 8.24 | % |  | 9.19 | %
Weighted average all in yield (2) |  | 8.62 | % |  | 9.64 | %
Weighted average floor |  | 2.12 | % |  | 1.36 | %
Weighted average maximum maturity (years) (3) |  | 2.6 |  | 3.0
Weighted average risk rating |  | 3.1 |  | 3.0
(1)Unfunded loan commitments are primarily used to finance property improvements and leasing capital and are generally funded over the term of the loan. (2)All in yield represents the yield on a loan, including amortization of deferred fees over the initial term of the loan and excluding any purchase discount accretion. (3)Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions. The table below represents our loan activities during 2023 and 2024:
|  | Principal Balance |  | Deferred Fees and Other Items |  | Amortized Cost
Balance at December 31, 2022 |  | $ | 678,555 |  |  | $ | (8,626) |  |  | $ | 669,929 |
Additional funding |  | 5,650 |  |  | (14) |  |  | 5,636 |
Originations |  | 133,300 |  |  | (1,621) |  |  | 131,679 |
Repayments |  | (171,748) |  |  | (535) |  |  | (172,283) |
Transfer to real estate owned |  | (15,865) |  |  | (95) |  |  | (15,960) |
Net amortization of deferred fees |  | — |  |  | 3,333 |  |  | 3,333 |
Purchase discount accretion |  | — |  |  | 4,128 |  |  | 4,128 |
Balance at December 31, 2023 |  | 629,892 |  |  | (3,430) |  |  | 626,462 |
Additional funding |  | 12,492 |  |  | (158) |  |  | 12,334 |
Originations |  | 133,817 |  |  | (1,757) |  |  | 132,060 |
Repayments |  | (165,390) |  |  | (594) |  |  | (165,984) |
Net amortization of deferred fees |  | — |  |  | 2,697 |  |  | 2,697 |
Purchase discount accretion |  | — |  |  | 2,347 |  |  | 2,347 |
Balance at December 31, 2024 |  | $ | 610,811 |  |  | $ | (895) |  |  | $ | 609,916 |
The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of December 31, 2024 and 2023:
|  | As of December 31,
|  | 2024 |  | 2023
Property Type |  | Number of Loans |  | Amortized Cost |  | Percentage of Value |  | Number of Loans |  | Amortized Cost |  | Percentage of Value
Office |  | 6 |  | $ | 167,749 |  |  | 28 | % |  | 7 |  | $ | 181,268 |  |  | 29 | %
Multifamily |  | 5 |  | 163,987 |  |  | 27 | % |  | 7 |  | 207,734 |  |  | 33 | %
Industrial |  | 5 |  | 136,646 |  |  | 22 | % |  | 5 |  | 118,707 |  |  | 19 | %
Hotel |  | 3 |  | 84,028 |  |  | 14 | % |  | 2 |  | 45,791 |  |  | 7 | %
Retail |  | 2 |  | 57,506 |  |  | 9 | % |  | 3 |  | 72,962 |  |  | 12 | %
|  | 21 |  | $ | 609,916 |  |  | 100 | % |  | 24 |  | $ | 626,462 |  |  | 100 | %
|  | As of December 31,
|  | 2024 |  | 2023
Geographic Location |  | Number of Loans |  | Amortized Cost |  | Percentage of Value |  | Number of Loans |  | Amortized Cost |  | Percentage of Value
South |  | 7 |  | $ | 192,108 |  |  | 32 | % |  | 8 |  | $ | 222,477 |  |  | 36 | %
West |  | 6 |  | 142,560 |  |  | 23 | % |  | 9 |  | 185,294 |  |  | 30 | %
East |  | 4 |  | 139,899 |  |  | 23 | % |  | 3 |  | 89,815 |  |  | 14 | %
Midwest |  | 4 |  | 135,349 |  |  | 22 | % |  | 4 |  | 128,876 |  |  | 20 | %
|  | 21 |  | $ | 609,916 |  |  | 100 | % |  | 24 |  | $ | 626,462 |  |  | 100 | %
Schedule of Carrying Value Excluding Allowance of Credit Losses | As of December 31, 2024 and 2023, the amortized cost of our loan portfolio within each internal risk rating by year of origination was as follows:
December 31, 2024
Risk Rating |  | Number of Loans |  | Percentage of Portfolio |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Total
1 |  | — |  | — | % |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2 |  | 4 |  | 18 | % |  | 41,570 |  |  | 53,070 |  |  | — |  |  | 15,252 |  |  | — |  |  | 109,892 |
3 |  | 12 |  | 58 | % |  | 91,515 |  |  | 25,086 |  |  | 163,228 |  |  | 76,034 |  |  | — |  |  | 355,863 |
4 |  | 5 |  | 24 | % |  | — |  |  | — |  |  | — |  |  | 114,556 |  |  | 29,605 |  |  | 144,161 |
5 |  | — |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
|  | 21 |  | 100 | % |  | $ | 133,085 |  |  | $ | 78,156 |  |  | $ | 163,228 |  |  | $ | 205,842 |  |  | $ | 29,605 |  |  | $ | 609,916 |
December 31, 2023
Risk Rating |  | Number of Loans |  | Percentage of Portfolio |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Total
1 |  | — |  | — | % |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2 |  | 3 |  | 15 | % |  | 37,323 |  |  | 42,089 |  |  | 15,435 |  |  | — |  |  | 94,847 |
3 |  | 18 |  | 71 | % |  | 94,881 |  |  | 167,491 |  |  | 144,456 |  |  | 38,548 |  |  | 445,376 |
4 |  | 3 |  | 14 | % |  | — |  |  | — |  |  | 86,239 |  |  | — |  |  | 86,239 |
5 |  | — |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
|  | 24 |  | 100 | % |  | $ | 132,204 |  |  | $ | 209,580 |  |  | $ | 246,130 |  |  | $ | 38,548 |  |  | $ | 626,462 |
Schedule of Changes to Allowance for Credit Loss | The tables below present the changes to the allowance for credit losses during the years ended December 31, 2024 and 2023:
|  | Loans Held for Investment, net |  | Unfunded Loan Commitments |  | Total
Balance at December 31, 2023 |  | $ | 4,376 |  |  | $ | 1,452 |  |  | $ | 5,828 |
Provision for credit losses |  | 3,698 |  |  | (618) |  |  | 3,080 |
Balance at December 31, 2024 |  | $ | 8,074 |  |  | $ | 834 |  |  | $ | 8,908 |
|  | Loans Held for Investment, net |  | Unfunded Loan Commitments |  | Total
Balance at December 31, 2022 |  | $ | — |  |  | $ | — |  |  | $ | — |
Cumulative-effect adjustment upon adoption of the CECL model |  | 4,893 |  |  | 1,702 |  |  | 6,595 |
Reversal of credit losses |  | (549) |  |  | (250) |  |  | (799) |
Write offs (1) |  | (708) |  |  | — |  |  | (708) |
Recoveries |  | 740 |  |  | — |  |  | 740 |
Balance at December 31, 2023 |  | $ | 4,376 |  |  | $ | 1,452 |  |  | $ | 5,828 |
(1)Write offs for the year ended December 31, 2023 relate to our loan secured by an office property located in Yardley, PA that was originated in 2019. We assumed legal title to the property through a deed in lieu of foreclosure in June 2023.

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 29 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-29 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-5 + Details
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