Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2022

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