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Related Party Transactions (Tables) | 9 Months Ended
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Sep. 30, 2021
Related Party Transactions [Abstract] |
Schedule of Related Party Transactions | The following table presents a summary of fees paid and costs reimbursed to the Manager in connection with providing services to the Company that are included on the consolidated statements of operations:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Origination and extension fee expense (1) |  | $ | 975,598 |  |  | $ | 285,205 |  |  | $ | 1,573,612 |  |  | $ | 973,423 |
Asset management fee |  | 1,420,119 |  | 1,151,166 |  | 3,733,358 |  |  | 3,321,125 |
Asset servicing fee |  | 311,127 |  | 258,860 |  | 861,324 |  |  | 746,384 |
Operating expenses reimbursed to Manager |  | 1,528,223 |  | 1,719,767 |  | 4,878,050 |  |  | 4,781,831 |
Disposition fee (2) |  | 342,508 |  | 95,889 |  | 657,196 |  |  | 391,833 |
Total |  | $ | 4,577,575 |  |  | $ | 3,510,887 |  |  | $ | 11,703,540 |  |  | $ | 10,214,596 |
_______________ (1)Origination and extension fee expense is generally offset with origination and extension fee income. Any excess is deferred and amortized to interest income over the term of the loan. (2)Disposition fee is generally offset with exit fee income and included in interest income on the consolidated statements of operations. In accordance with the terms of each participation agreement, each Participant’s rights and obligations, as well as the proceeds received from the related borrower/issuer of the loan, are based upon their respective pro rata participation interest in the loan. The table below lists the participation interests purchased by the Company pursuant to participation agreements as of December 31, 2020. There were no such purchased participation interests outstanding as of September 30, 2021.
|  | December 31, 2020
|  | Participating Interests |  | Principal Balance |  | Carrying Value
LD Milpitas Mezz, LP (1) |  | 25.00% |  | $ | 4,250,000 |  |  | $ | 4,294,053 |
________________ (1)On June 27, 2018, the Company entered into a participation agreement with Terra Income Fund 6, Inc. (“Terra Fund 6”) to purchase a 25% participation interest, or $4.3 million, in a $17.0 million mezzanine loan. This loan was repaid in full in May 2021. The following tables summarize the loans that were subject to participation agreements with affiliated entities and third-parties as of September 30, 2021 and December 31, 2020:
|  |  |  |  | Transfers Treated as Obligations Under Participation Agreements as of September 30, 2021
| Principal Balance |  | Carrying Value |  | % Transferred |  | Principal Balance |  | Carrying Value
14th & Alice Street Owner, LLC (1) | $ | 38,871,218 |  |  | $ | 39,110,871 |  |  | 80.00 | % |  | $ | 31,096,974 |  |  | $ | 31,237,324 |
370 Lex Part Deux, LLC (2) | 58,419,764 |  |  | 58,429,227 |  |  | 35.00 | % |  | 20,446,917 |  |  | 20,446,917 |
BW Property Owner LLC and BW 2 Property Owner LLC (1)(2)(3) | 52,000,000 |  |  | 52,464,277 |  |  | 90.38 | % |  | 47,000,000 |  |  | 47,419,635 |
RS JZ Driggs, LLC (2) | 14,038,270 |  |  | 14,166,228 |  |  | 50.00 | % |  | 7,022,341 |  |  | 7,086,349 |
| $ | 163,329,252 |  |  | $ | 164,170,603 |  |  |  |  | $ | 105,566,232 |  |  | $ | 106,190,225 |
|  |  |  |  | Transfers Treated as Obligations Under Participation Agreements as of December 31, 2020
| Principal Balance |  | Carrying Value |  | % Transferred |  | Principal Balance |  | Carrying Value
14th & Alice Street Owner, LLC (1) | $ | 32,625,912 |  |  | $ | 32,877,544 |  |  | 80.00 | % |  | $ | 26,100,729 |  |  | $ | 26,211,548 |
370 Lex Part Deux, LLC (2) | 53,874,507 |  |  | 53,912,363 |  |  | 35.00 | % |  | 18,856,078 |  |  | 18,856,077 |
City Gardens 333 LLC (2) | 28,303,628 |  |  | 28,307,408 |  |  | 14.00 | % |  | 3,962,509 |  |  | 3,963,010 |
Orange Grove Property Investors, LLC (2)(4) | 10,600,000 |  |  | 10,701,924 |  |  | 80.00 | % |  | 8,480,000 |  |  | 8,561,523 |
RS JZ Driggs, LLC (2) | 8,544,513 |  |  | 8,629,929 |  |  | 50.00 | % |  | 4,272,257 |  |  | 4,314,965 |
Stonewall Station Mezz LLC (2)(4) | 10,442,567 |  |  | 10,537,512 |  |  | 44.00 | % |  | 4,594,730 |  |  | 4,635,937 |
The Bristol at Southport, LLC (1)(4) | 23,500,000 |  |  | 23,682,536 |  |  | 21.28 | % |  | 5,000,000 |  |  | 5,038,837 |
| $ | 167,891,127 |  |  | $ | 168,649,216 |  |  |  |  | $ | 71,266,303 |  |  | $ | 71,581,897 |
________________ (1)Participant is a third-party. (2)Participant is Terra Fund 6, an affiliated fund advised by Terra Income Advisors, LLC, an affiliate of the Company’s sponsor and Manager. (3)The participation interest was transferred to an affiliate and/or a third-party pursuant to a participation agreement in the second quarter of 2021. (4)The obligation under participation agreement was repaid in 2021. The following table summarizes the loan that was transferred to a third-party that was accounted for as secured borrowing as of September 30, 2021 and December 31, 2020:
|  |  |  |  | Transfers Treated as Secured Borrowing as of September 30, 2021
| Principal Balance |  | Carrying Value |  | % Transferred |  | Principal Balance |  | Carrying Value
Windy Hill PV Five CM, LLC | $ | 45,550,347 |  |  | $ | 45,813,408 |  |  | 69.11 | % |  | $ | 31,477,882 |  |  | $ | 31,525,439 |
| $ | 45,550,347 |  |  | $ | 45,813,408 |  |  |  |  | $ | 31,477,882 |  |  | $ | 31,525,439 |
|  |  |  |  | Transfers Treated as Secured Borrowing as of December 31, 2020
| Principal Balance |  | Carrying Value |  | % Transferred |  | Principal Balance |  | Carrying Value
Windy Hill PV Five CM, LLC | $ | 26,454,910 |  |  | $ | 26,407,494 |  |  | 69.11 | % |  | $ | 18,281,848 |  |  | $ | 18,187,663 |
| $ | 26,454,910 |  |  | $ | 26,407,494 |  |  |  |  | $ | 18,281,848 |  |  | $ | 18,187,663 |

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- Definition Tabular disclosure of related party transactions. Examples of related party transactions include, but are not limited to, transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners and (d) affiliates. + References No definition available. + Details
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