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v3.22.1

Related Party Transactions (Tables) | 3 Months Ended
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Mar. 31, 2022
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 March 31,
|  |  | 2022 |  | 2021
Origination and extension fee expense (1)(2) |  |  | $ | 686,365 |  |  | $ | 345,384 |
Asset management fee |  |  | 1,488,095 |  |  | 1,156,543 |
Asset servicing fee |  |  | 349,329 |  |  | 273,207 |
Operating expenses reimbursed to Manager |  |  | 1,928,563 |  |  | 1,342,758 |
Disposition fee (3) |  |  | — |  |  | 250,988 |
Total |  |  | $ | 4,452,352 |  |  | $ | 3,368,880 |
_______________ (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)Amount for the three months ended March 31, 2022 excluded $0.2 million of origination fee paid to the Manager in connection with the Company’s equity investment in an unconsolidated investment. This origination fee was capitalized to the carrying value of the unconsolidated investment as a transaction cost. (3)Disposition fee is generally offset with exit fee income and included in interest income on the consolidated statements of operations. The table below lists the participation interests purchased by the Company pursuant to participation agreements as of March 31, 2022 and December 31, 2021.
|  | March 31, 2022
|  | Participating Interests |  | Principal Balance |  | Carrying Value
Hillsborough Owners LLC (1) |  | 30.00% |  | $ | 5,444,696 |  |  | $ | 5,458,850 |
UNJ Sole Member, LLC (2) |  | 40.80% |  | 7,444,357 |  |  | 7,478,454 |
|  |  |  | $ | 12,889,053 |  |  | $ | 12,937,304 |
|  | December 31, 2021
|  | Participating Interests |  | Principal Balance |  | Carrying Value
Hillsborough Owners LLC (1) |  | 30.00% |  | $ | 4,863,009 |  |  | $ | 4,866,542 |
UNJ Sole Member, LLC (2) |  | 40.80% |  | 7,444,357 |  |  | 7,477,190 |
|  |  |  | $ | 12,307,366 |  |  | $ | 12,343,732 |
________________ (1)The loan is held in the name of Terra Income Fund 6, Inc., an affiliated fund advised by Terra Income Advisors, LLC, an affiliate of the Company’s sponsor and Manager. (2)The loan is held in the name of Mavik Real Estate Special Opportunities Fund REIT, LLC, a related-party REIT managed by the Manager. The following tables summarize the loans that were subject to participation agreements with affiliated entities and third-parties as of March 31, 2022 and December 31, 2021:
|  |  |  |  | Transfers Treated as Obligations Under Participation Agreements as of March 31, 2022
| Principal Balance |  | Carrying Value |  | % Transferred |  | Principal Balance |  | Carrying Value
370 Lex Part Deux, LLC (1) | $ | 60,583,057 |  |  | $ | 60,583,057 |  |  | 35.00 | % |  | $ | 21,204,070 |  |  | $ | 21,204,068 |
Post Brothers Holdings LLC (1) | 21,000,000 |  |  | 21,670,442 |  |  | 71.43 | % |  | 15,000,000 |  |  | 15,478,888 |
RS JZ Driggs, LLC (1) | 16,933,491 |  |  | 17,099,374 |  |  | 50.00 | % |  | 8,469,911 |  |  | 8,552,884 |
William A. Shopoff & Cindy I. Shopoff (1) | 25,000,000 |  |  | 25,214,933 |  |  | 52.95 | % |  | 13,237,500 |  |  | 13,351,308 |
| $ | 123,516,548 |  |  | $ | 124,567,806 |  |  |  |  | $ | 57,911,481 |  |  | $ | 58,587,148 |
|  |  |  |  | Transfers Treated as Obligations Under Participation Agreements as of December 31, 2021
| Principal Balance |  | Carrying Value |  | % Transferred |  | Principal Balance |  | Carrying Value
370 Lex Part Deux, LLC (1) | $ | 60,012,639 |  |  | $ | 60,012,639 |  |  | 35.00 | % |  | $ | 21,004,424 |  |  | $ | 21,004,423 |
RS JZ Driggs, LLC (1) | 15,606,409 |  |  | 15,754,641 |  |  | 50.00 | % |  | 7,806,370 |  |  | 7,880,516 |
William A. Shopoff & Cindy I. Shopoff (1) | 25,000,000 |  |  | 25,206,964 |  |  | 52.95 | % |  | 13,237,500 |  |  | 13,347,088 |
| $ | 100,619,048 |  |  | $ | 100,974,244 |  |  |  |  | $ | 42,048,294 |  |  | $ | 42,232,027 |
________________ (1)Participant is Terra Income Fund 6, Inc. The following table summarizes the loan that was transferred to a third-party that was accounted for as secured borrowing as of March 31, 2022 and December 31, 2021:
|  |  |  |  | Transfers Treated as Secured Borrowing as of March 31, 2022
| Principal Balance |  | Carrying Value |  | % Transferred |  | Principal Balance |  | Carrying Value
Windy Hill PV Five CM, LLC | $ | 54,078,939 |  |  | $ | 54,416,729 |  |  | 69.11 | % |  | $ | 37,371,625 |  |  | $ | 37,503,542 |
| $ | 54,078,939 |  |  | $ | 54,416,729 |  |  |  |  | $ | 37,371,625 |  |  | $ | 37,503,542 |
|  |  |  |  | Transfers Treated as Secured Borrowing as of December 31, 2021
| Principal Balance |  | Carrying Value |  | % Transferred |  | Principal Balance |  | Carrying Value
Windy Hill PV Five CM, LLC | $ | 49,954,068 |  |  | $ | 50,264,568 |  |  | 69.11 | % |  | $ | 34,521,104 |  |  | $ | 34,586,129 |
| $ | 49,954,068 |  |  | $ | 50,264,568 |  |  |  |  | $ | 34,521,104 |  |  | $ | 34,586,129 |

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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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