XML 131 R37.htm IDEA: XBRL DOCUMENT

Preferred Equity and Mezzanine Loan Investments - (Tables)

12 Months Ended

Dec. 31, 2019

Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]

Schedule of Mezzanine Loans and Preferred Equity Investments

The geographic concentrations of credit risk exceeding 5% of the total preferred equity and mezzanine loan investment amounts as of December 31, 2019 and 2018, respectively, are as follows:



	December 31, 2019		December 31, 2018
Tennessee	12.3	%	6.8	%
Florida	12.0	%	11.3	%
Georgia	11.8	%	15.3	%
Texas	10.6	%	16.6	%
Alabama	10.0	%	8.6	%
Virginia	8.4	%	9.1	%
South Carolina	6.3	%	9.5	%
New Jersey	5.0	%	2.6	%

Preferred equity and mezzanine loan investments consist of the following as of December 31, 2019 and 2018, respectively (dollar amounts in thousands):



	December 31, 2019			December 31, 2018
Investment amount	$	181,409		$	166,789
Deferred loan fees, net	(1,364		)	(1,234		)
Total	$	180,045		$	165,555

The following table summarizes the Company’s Securitized Debt collateralized by multi-family CMBS or distressed residential mortgage loans as of December 31, 2018 (dollar amounts in thousands):



	Multi-family CMBS Re-securitization⁽¹⁾			Distressed Residential Mortgage Loan Securitizations
Principal Amount at December 31, 2018	$	33,177		$	12,381
Carrying Value at December 31, 2018⁽²⁾	$	30,121		$	12,214
Pass-through rate of Notes issued	5.35		%	4.00		%


⁽¹⁾	The Company engaged in the re-securitization transaction primarily for the purpose of obtaining non-recourse financing on a portion of its multi-family CMBS portfolio. As a result of engaging in this transaction, the Company remained economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE.

⁽²⁾

Presented net of unamortized deferred costs of $0.2 million related to the issuance of the securitized debt, which included underwriting, rating agency, legal, accounting and other fees.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details