Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2021

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