REAL ESTATE LOANS RECEIVABLE (Tables)

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Schedule of Real Estate Loans Receivable

As of September 30, 2014, the Company owned one real estate loan receivable that it had originated. The information for that real estate loan receivable as of September 30, 2014 and December 31, 2013 is set forth below (in thousands):

Loan Name Location of Related Property or  Collateral

Date Acquired/ Originated

Property Type

Loan Type

Outstanding Principal Balance as of September 30, 2014 (1)

Book Value as of September 30, 2014 (2)

Book Value as of December 31, 2013 (2)

Contractual Interest Rate (3)

Annualized Effective Interest Rate (3)

Maturity Date

University House First Mortgage

New York, New York (4)

3/20/2013

Student Housing

Mortgage

$

27,850

$

27,216

$

21,893

11.0%

14.2%

06/30/2015

_____________________

⁽¹⁾ Outstanding principal balance as of September 30, 2014 represents original principal balance outstanding under the loan, increased for any subsequent fundings, including interest income deferred until maturity.

⁽²⁾ Book value of the real estate loan receivable represents outstanding principal balance adjusted for unamortized acquisition discounts, origination fees and direct origination and acquisition costs and additional interest accretion.

⁽³⁾ Contractual interest rates are the stated interest rates on the face of the loans. Annualized effective interest rates are calculated as the actual interest income recognized in 2014, using the interest method annualized (if applicable) and divided by the average amortized cost basis of the investment. The annualized effective interest rates and contractual interest rates presented are as of September 30, 2014.

⁽⁴⁾ During the nine months ended September 30, 2014, the Company and the borrower under the University House First Mortgage entered into a loan modification under which the maturity date was extended to June 30, 2015 and the Company advanced an additional $5.9 million to the borrower.

Schedule of Activity Related to Real Estate Loans Receivable

The following summarizes the activity related to the real estate loan receivable for the nine months ended September 30, 2014 (in thousands):

Real estate loan receivable - December 31, 2013	$	21,893
Advance on real estate loan receivable	5,850
Extension fee on real estate loan receivable	(935		)
Accretion of closing costs and origination fees on real estate loan receivable, net	408
Real estate loan receivable - September 30, 2014	$	27,216

Schedule of Interest Income from Real Estate Loans Receivable

For the three and nine months ended September 30, 2014 and 2013, interest income from real estate loans receivable consisted of the following (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Contractual interest income (including deferred interest)	$	752	$	4,960	$	1,969	$	7,630
Accretion of closing costs, origination fees and extension fees, net	196		538		408		736
Interest accretion	—		328		—		1,186
Interest income from real estate loans receivable	$	948	$	5,826	$	2,377	$	9,552