The Company elected the practical expedient under ASC 326 to exclude accrued interest from amortized cost. As of December 31, 2024 and 2023, accrued interest receivable of $0.3 million and $1.2 million, respectively, is included in interest receivable on the consolidated balance sheets, and is excluded from the amortized cost of loans held for investment.


	December 31, 2024						December 31, 2023
	Fixed Rate		Floating Rate (1)(2)		Total		Fixed Rate		Floating Rate (1)(2)		Total
Number of loans	1		2		3		4		2		6
Principal balance	$	2,843,280	$	43,059,173	$	45,902,453	$	44,377,373	$	43,059,173	$	87,436,546
Carrying value	$	2,573,280	$	27,814,616	$	30,387,896	$	44,528,468	$	33,814,996	$	78,343,464
Fair value	$	2,573,280	$	28,068,902	$	30,642,182	$	44,313,689	$	34,214,046	$	78,527,735
Weighted-average coupon rate(3)	—%		19.5%		19.5%		13.8%		20.3%		15.8%
Weighted-average remaining term (years) (3) (4)	0.00		0.10		0.10		0.76		1.10		0.87

_______________

(1)As of December 31, 2024 and 2023, these loans pay a coupon rate of Secured Overnight Financing Rate (“SOFR”) or forward-looking term rate based on SOFR (“Term SOFR”), as applicable, plus a fixed spread. Coupon rates shown were determined using average SOFR and Term SOFR of 4.5% and 4.3%, respectively, as of December 31, 2024, and 5.3% and 5.4%, respectively, as of December 31, 2023.


	Loans Held for Investment, Net		Loans Held for Investment through Participation Interests, Net		Total
Balance, January 1, 2024	$	60,458,534	$	17,884,930	$	78,343,464
Origination, funding and purchase of loans	843,996		215,907		1,059,903
Principal repayments received	(42,941,496)		—		(42,941,496)
Net amortization of premiums on loans	(126,278)		—		(126,278)
Accrual, payment and accretion of investment-related fees and other, net	51,579		—		51,579
Reversal of (provision for) credit losses	289,560		(6,288,836)		(5,999,276)
Balance, December 31, 2024	$	18,575,895	$	11,812,001	$	30,387,896


	Loans Held for Investment, Net		Loans Held for Investment through Participation Interests, Net		Total
Balance, January 1, 2023	$	79,082,650	$	42,330,376	$	121,413,026
Cumulative effect of adoption of credit loss accounting standard effective January 1, 2023 (Note 2)	(593,040)		—		(593,040)
Origination and purchase of loans	4,183,830		1,194,248		5,378,078
Principal repayments received	(21,655,810)		(20,346,058)		(42,001,868)
Net amortization of premiums on loans	(915,998)		(81,411)		(997,409)
Accrual, payment and accretion of investment-related fees and other, net	232,871		85,047		317,918
Reversal of (provision for) credit losses	124,031		(5,297,272)		(5,173,241)
Balance, December 31, 2023	$	60,458,534	$	17,884,930	$	78,343,464

The tables below detail the types of loans in the Company’s loan portfolio, as well as the property type and geographic location of the properties securing these loans. Carrying value represents the amortized cost of loan, net of applicable allowance for credit losses.


	December 31, 2024						December 31, 2023
Loan Structure	Principal Balance		Carrying Value		% of Total		Principal Balance		Carrying Value		% of Total
Preferred equity investments	$	45,902,453	$	30,387,896	100.0	%	$	63,186,546	$	53,973,564	68.9	%
First mortgages	—		—		—	%	21,250,000		21,462,168		27.4	%
Mezzanine loans	—		—		—	%	3,000,000		2,907,732		3.7	%
Total	$	45,902,453	$	30,387,896	100.0	%	$	87,436,546	$	78,343,464	100.0	%


	December 31, 2024						December 31, 2023
Property Type	Principal Balance		Carrying Value		% of Total		Principal Balance		Carrying Value		% of Total
Mixed use	$	18,567,296	$	18,575,895	61.1	%	$	18,567,296	$	18,557,439	23.7	%
Office	24,491,877		9,238,721		30.4	%	24,491,877		15,257,557		19.5	%
Multifamily	2,843,280		2,573,280		8.5	%	20,127,373		20,158,568		25.7	%
Infrastructure	—		—		—	%	21,250,000		21,462,168		27.4	%
Student housing	—		—		—	%	3,000,000		2,907,732		3.7	%
Total	$	45,902,453	$	30,387,896	100.0	%	$	87,436,546	$	78,343,464	100.0	%


	December 31, 2024						December 31, 2023
Geographic Location	Principal Balance		Carrying Value		% of Total		Principal Balance		Carrying Value		% of Total
United States
California	$	18,567,296	$	18,575,895	61.1	%	$	21,567,296	$	21,465,171	27.4	%
New York	27,335,157		11,812,001		38.9	%	27,119,250		17,884,930		22.8	%
Utah	—		—		—	%	21,250,000		21,462,168		27.4	%
Georgia	—		—		—	%	17,500,000		17,531,195		22.4	%
Total	$	45,902,453	$	30,387,896	100.0	%	$	87,436,546	$	78,343,464	100.0	%

As described in Note 2, on January 1, 2023, the Company adopted the provisions of ASU 2016-13, which requires entities to recognize credit losses on financial instruments based on an estimate of current expected credit losses. The adoption of ASU 2016-13 resulted in a $0.7 million increase to total reserve, including reserve on future funding commitments, which was recognized as a cumulative-effect adjustment to member’s capital as of January 1, 2023.

Certain of the Company’s performing loans contain provisions for future funding commitments, which are subject to the borrower meeting certain performance-related metrics that are monitored by the Company. These unfunded commitments on loans amounted to approximately $0.7 million and $0.7 million as of December 31, 2024 and 2023, respectively. The liability for credit losses on unfunded commitments is included in other liabilities on the consolidated balance sheets.

As discussed in Note 2, for loans that are considered non-performing, the Company removes them from the industry loss rate approach and analyzes them separately for recoverability. As of December 31, 2024 and 2023, the Company had two non-performing loans with total amortized cost of $27.3 million and $27.1 million, respectively. Accordingly, the Company utilized the estimated fair value of the loan collateral or sponsor’s guarantee to estimate the total specific allowance for credit losses of $15.5 million and $9.2 million as of December 31, 2024 and December 31, 2023, respectively. Please see “Significant Unobservable Inputs” in Note 5 for information on how the fair values of these loans were determined.


	Year Ended December 31, 2024
	Allowance on Non-Performing Loans		Allowance on Performing Loans				Total
			Funded		Unfunded
Allowance for credit losses, beginning of period	$	9,234,321	$	469,010	$	8,801	$	9,712,132
Provision for (reversal of provision for) credit losses	6,288,835		(289,559)		(2,202)		5,997,074
Charge-offs	—		—		—		—
Recoveries	—		—		—		—
Allowance for credit losses, end of period	$	15,523,156	$	179,451	$	6,599	$	15,709,206


	Year Ended December 31, 2023
	Allowance on Non-Performing Loans		Allowance on Performing Loans				Total
			Funded		Unfunded
Allowance for credit losses, beginning of period	$	3,937,050	$	—	$	—	$	3,937,050
Cumulative effect of adoption of ASU 2016-13 effective January 1, 2023 (Note 2)	—		593,040		68,382		661,422
Provision for (reversal of provision for) credit losses	5,297,271		(124,030)		(59,581)		5,113,660
Charge-offs	—		—		—		—
Recoveries	—		—		—		—
Allowance for credit losses, end of period	$	9,234,321	$	469,010	$	8,801	$	9,712,132

The Company elected not to measure a CECL reserve on accrued interest receivable due to the Company’s policy of writing off uncollectible accrued interest receivable balances in a timely manner. If the Company determines it has uncollectible accrued interest receivable, it generally will reverse the accrued and unpaid interest against interest income and suspend the accrual for future interest income. For the years ended December 31, 2024 and 2023, the Company did not reverse any interest income accrual because all accrued interest income was deemed collectible. As of December 31, 2024 and 2023, the Company had two loans that were in default, and suspended interest income accrual of $5.0 million and $4.2 million for the years ended December 31, 2024 and 2023, respectively, because recovery of such income was not probable. As of December 31, 2024 and 2023, there was no outstanding interest receivable on these loans.

The Company assesses the risk factors of each performing loan and assigns each performing loan a risk rating between 1 and 5, which is an average of the numerical ratings in the following categories: (i) sponsor capability and financial condition; (ii) loan and collateral performance relative to underwriting; (iii) quality and stability of collateral cash flows and/or reserve balances; and (iv) loan to value. Based on a 5-point scale, the Company’s performing loans are rated “1” through “5”, from less risk to greater risk as follows:

Additionally, as discussed in Note 2, during the loan review process, if the Company determines that it is not able to collect all amounts due for both principal and interest according to the contractual terms of a loan, or if a loan is in maturity default, the Company considers that loan non-performing.


	December 31, 2024
Loan Risk Rating	Number of Loans	Amortized Cost		% of Total		Amortized Cost by Year Originated
						2024		2023		2022		2021		2020		Prior
1	—	$	—	—	%	$	—	$	—	$	—	$	—	$	—	$	—
2	—	—		—	%	—		—		—		—		—
3	—	—		—	%	—				—		—		—		—
4	1	18,755,345		40.7	%	—		—		18,755,345		—		—		—
5	—	—		—	%	—		—		—		—		—		—
Non-performing	2	27,335,157		59.3	%	—		—		—		—		—		27,335,157
	3	46,090,502		100.0	%	$	—	$	—	$	18,755,345	$	—	$	—	$	27,335,157
Allowance for credit losses		(15,702,606)
Total, net of allowance for credit losses		$	30,387,896


	December 31, 2023
Loan Risk Rating	Number of Loans	Amortized Cost		% of Total		Amortized Cost by Year Originated
						2023		2022		2021		2020		2019		Prior
1	—	$	—	—	%	$	—	$	—	$	—	$	—	$	—	$	—
2	—	—		—	%	—		—		—		—		—
3	3	42,130,731		47.9	%	—				39,195,427		—		—		2,935,304
4	1	18,796,818		21.3	%	—		18,796,818		—		—		—		—
5	—	—		—	%	—		—		—		—		—		—
Non-performing	2	27,119,246		30.8	%	—		—		—		—				27,119,246
	6	88,046,795		100.0	%	$	—	$	18,796,818	$	39,195,427	$	—	$	—	$	30,054,550
Allowance for credit losses		(9,703,331)
Total, net of allowance for credit losses		$	78,343,464

In the first quarter of 2023, the Company purchased $10.0 million of corporate bonds with a coupon rate of 6.125% that matured on May 15, 2023. The Company classified these bonds as held-to-maturity debt securities, as it had the intent and ability to hold these securities until maturity. These securities were recorded at amortized cost and were fully redeemed at par on May 15, 2023.