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Related Party Transactions (Tables)

12 Months Ended

Dec. 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:


	Years Ended December 31,
		2022		2021
Origination and extension fee expense (1)(2)		$	2,967,291	$	2,729,598
Asset management fee		6,556,492		5,134,149
Asset servicing fee		1,560,044		1,181,924
Operating expenses reimbursed to Manager		8,076,321		6,916,371
Disposition fee (3)		890,194		1,006,302
Total		$	20,050,342	$	16,968,344

_______________

(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 years ended December 31, 2022 and 2021 excluded $0.2 million and $0.3 million of origination fee, respectively, 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:


	December 31, 2022
	Participating Interests	Principal Balance		Carrying Value

Havemeyer TSM LLC (1)(2)	23.00%	$	3,282,208	$	3,313,813
Mesa AZ Industrial Owner, LLC (1)(3)	38.27%	31,000,000		31,276,468
UNJ Sole Member, LLC (1)	40.80%	7,444,357		7,482,547
		$	41,726,565	$	42,072,828


	December 31, 2021
	Participating Interests	Principal Balance		Carrying Value

Hillsborough Owners LLC (4)	30.00%	$	4,863,009	$	4,866,542
UNJ Sole Member, LLC (1)	40.80%	7,444,357		7,477,190
		$	12,307,366	$	12,343,732

________________

(1)The loan is held in the name of Mavik Real Estate Special Opportunities Fund REIT, LLC (“RESOF REIT”), a related-party REIT managed by the Manager.

(2)The Company acquired its interest in this investment in connection with the BDC Merger

(3)The Company acquired its interest in this investment in September 2022.

(4)The loan was held in the name of Terra BDC, a formerly affiliated fund that was advised by Terra Income Advisors, LLC, an affiliate of the Company’s sponsor and Manager. In connection with the BDC Merger, the Company contributed the loan to Terra BDC and the related obligation under participation agreement was released.The following tables summarize the loans that were subject to participation agreements with affiliated entities and third-parties as of:


					Transfers Treated as Obligations Under Participation Agreements as of December 31, 2022
	Principal Balance		Carrying Value		% Transferred		Principal Balance		Carrying Value
610 Walnut Investors LLC (1)	$	18,625,738	$	18,738,386	67.57	%	$	12,584,958	$	12,680,594
	$	18,625,738	$	18,738,386			$	12,584,958	$	12,680,594


					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 (2)(3)	$	60,012,639	$	60,012,639	35.00	%	$	21,004,424	$	21,004,423
RS JZ Driggs, LLC (2)(3)	15,606,409		15,754,641		50.00	%	7,806,370		7,880,516
William A. Shopoff & Cindy I. Shopoff (2)(3)	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 was a third party.

(2)Participant was Terra BDC and now Terra LLC.

(3)In connection with the BDC Merger, the obligations under participation agreements were effectively extinguished and the Company recognized a gain on extinguishment of obligations under participation agreements of $3.4 million (Note 3).

The following table summarizes the loan that was transferred to a third-party that was accounted for as secured borrowing as of:


					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