The Company owns interests in a limited partnership and three joint ventures. The Company accounts for its interests in these investments under the equity method of accounting (Note 2). The Company classifies distributions received from equity method investments using the cumulative earnings approach. Distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceeds cumulative equity in earnings recognized, the excess is considered a return of investment and is classified as cash inflows from investing activities.

On August 3, 2020, the Company entered into a subscription agreement with Mavik Real Estate Special Opportunities Fund, LP (“RESOF”) whereby the Company committed to fund up to $50.0 million to purchase a limited partnership interest in RESOF. RESOF’s primary investment objective is to generate attractive risk-adjusted returns by purchasing performing and non-performing mortgages, loans, mezzanines and other credit instruments supported by underlying commercial real estate assets. RESOF may also opportunistically originate high-yield mortgages or loans in real estate special situations including

rescue financings, bridge loans, restructurings and bankruptcies (including debtor-in-possession loans). The general partner of RESOF is Mavik Real Estate Special Opportunities Fund GP, LLC, which is a subsidiary of the Company’s sponsor, Terra Capital Partners. As of December 31, 2022 and 2021, the unfunded commitment was $22.4 million and $15.1 million, respectively.

The Company evaluated its equity interest in RESOF and determined it does not have a controlling financial interest and is not the primary beneficiary. Accordingly, the equity interest in RESOF is accounted for as an equity method investment. As of December 31, 2022 and 2021, the Company owned 27.9% and 50.0% of the equity interest in RESOF, respectively. As of December 31, 2022 and 2021, the carrying value of the Company’s investment in RESOF was $36.8 million and $40.5 million, respectively. For the year ended December 31, 2022, the Company recorded equity income from RESOF of $5.2 million, and did not receive any distributions from RESOF. For the year ended December 31, 2021, the Company recorded equity income from RESOF of $6.2 million and received distributions from RESOF of $3.5 million.

In connection with the equity investment in RESOF, the Company paid origination fees to the Manager totaling $0.5 million, to be amortized to equity income on a straight-line basis over the life of RESOF.

The following tables present summarized financial information of the Company’s equity investment in RESOF. Amounts provided are the total amounts attributable to the investment and do not represent the Company’s proportionate share:


	As of December 31,
	2022		2021
Investments at fair value (cost of $176,035,290 and $107,261,022, respectively)	$	178,283,703	$	108,359,898
Other assets	23,918,841		5,484,087
Total assets	202,202,544		113,843,985
Revolving line of credit, net of financing costs	14,795,985		14,909,717
Obligations under participation agreement (proceeds of $41,726,565 and $14,252,357, respectively)	41,962,861		14,351,617
Other liabilities	17,120,804		5,296,603
Total liabilities	73,879,650		34,557,937
Partners’ capital	$	128,322,894	$	79,286,048


	Years Ended December 31,
		2022		2021
Total investment income		$	31,436,886	$	11,769,083
Total expenses		9,042,066		2,381,145
Net investment income		22,394,820		9,387,938
Unrealized (depreciation) appreciation on investments		(2,180,632)		524,113
Net increase in partners’ capital resulting from operations		$	20,214,188	$	9,912,051

As of December 31, 2022, the Company beneficially owned equity interests in three joint ventures that invest in real estate properties. The Company evaluated its equity interests in the joint ventures and determined it does not have a controlling financial interest and is not the primary beneficiary. Accordingly, the equity interests in the joint ventures are accounted for as equity method investments. In September 2022, the Company sold a 53% effective interest in two joint ventures and 59% effective interest in another joint venture for a total of $33.7 million and recognized a gain on sale of $0.8 million. The following table presents the Company’s beneficial ownership interests in its equity investments in the joint ventures and their respective carrying values:

In December 2022, the Company originated a $10.0 million mezzanine loan to a borrower to finance the acquisition of a real estate portfolio. In connection with this mezzanine loan, the Company entered into a residual profit sharing agreement with the borrower where the borrower will pay the Company an additional amount of 35.0% of remaining net cash flow from the sale of the real estate portfolio. The Company accounts for this arrangement using the equity method of accounting.


		December 31, 2022			December 31, 2021
Entity	Co-owner (1)	Beneficial Ownership Interest	Carrying Value		Beneficial Ownership Interest	Carrying Value
LEL Arlington JV LLC (1)	Affiliate/Third party	27.2%	$	7,271,603	80%	$	23,949,044
LEL NW 49th JV LLC (1)	Affiliate/Third party	27.2%	1,521,556		80%	5,306,467
TCG Corinthian FL Portfolio JV LLV (1)(2)	Affiliate/Third Party	30.6%	6,896,816		—%	—
SF-Dallas Industrial, LLC (3)	N/A	N/A	10,013,691		—%	—
			$	25,703,666		$	29,255,511

The following tables present estimated combined summarized financial information of the Company’s equity investment in the joint ventures. Amounts provided are the total amounts attributable to the joint ventures and do not represent the Company’s proportionate share:


	As of December 31,
	2022		2021
Net investments in real estate	$	192,616,298	$	115,636,424
Other assets	12,817,388		4,856,249
Total assets	205,433,686		120,492,673
Mortgage loan payable	147,740,645		83,445,235
Other liabilities	3,104,624		1,305,572
Total liabilities	150,845,269		84,750,807
Members’ capital	$	54,588,417	$	35,741,866


	Years Ended December 31,
		2022		2021
Revenues		$	15,071,626	$	1,448,431
Operating expenses		(6,710,172)		(518,904)
Depreciation and amortization expense		(9,914,314)		(541,119)
Interest expense		(7,572,790)		(692,500)
Unrealized gains		3,244,813		447
Net loss		$	(5,880,837)	$	(303,645)

For the year ended December 31, 2022, the Company recorded equity loss from the joint ventures of $2.5 million, and received distributions from the joint ventures of $0.9 million. For the year ended December 31, 2021, the Company recorded equity loss from the joint ventures of $0.2 million and received no distributions. In connection with these investments, the Company paid origination fee to the Manager totaling $0.5 million, to be amortized to equity income over the life of the respective joint venture.