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COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Lease Obligations
As of March 31, 2024 and December 31, 2023, the Company’s lease and rights to a leasehold interest with respect to 210 West 31st, which was accounted as a finance lease, are included in the consolidated balance sheet as follows:
March 31, 2024December 31, 2023
Right-of-use asset (included in real estate held for investment, net, in thousands)$6,391 $6,391 
Lease obligation (included in other liabilities, in thousands) 9,561 9,537 
Remaining lease term89.8 years90.0 years
Discount rate4.8 %4.8 %
As of March 31, 2024, the Company had a leasehold interest expiring in 2114. Future minimum lease payments under the Company’s finance lease as of March 31, 2024, are as follows (in thousands):
April 1, 2024 through December 31, 2024$270 
2025393 
2026396 
2027396 
2028396 
Thereafter51,375 
Total expected minimum lease obligations53,226 
Less: Amount representing interest (1)
(43,665)
Present value of net minimum lease payments (2)
$9,561 
_____________________
(1) Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company’s incremental borrowing rate at acquisition.
(2) The present value of net minimum lease payments is included in other liabilities in the accompanying consolidated balance sheets.

Capital Commitments
As of March 31, 2024, the Company had a future funding commitment of $61.1 million related to the Capital Commitments. Such amounts are payable as incurred and therefore, no accrual is recognized as of March 31, 2024.
Guarantee Agreements
As of March 31, 2024, and as part of the previous 110 William Joint Venture debt and restructuring agreements, the Company guaranteed: all debt servicing costs and timely debt payments, completion for the construction and development of tenant improvement work, capital commitments, and recourse obligations. The related debt has an initial maturity of July 5, 2026, and guarantee amounts are due upon occurrence of any one triggering event.
As of March 31, 2024, and as part of the Georgia 400 Mortgage Loan and Lincoln Court Mortgage Loan, the Company guaranteed the payment of $22.8 million, whereby the Company would be required to make guaranteed payments in the event that the Company turned the property over to the lender.
Economic Dependency
The Company is dependent on Pacific Oak Capital Advisors and its affiliates for certain services that are essential to the Company, including the identification, evaluation, negotiation, origination, acquisition and disposition of investments; management of the daily operations of the Company’s investment portfolio; and other general and administrative responsibilities. In the event that Pacific Oak Capital Advisors and its affiliates is unable to provide these services, the Company will be required to obtain such services from other sources.
Environmental
As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations as of March 31, 2024.
Legal Matters
In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. As of March 31, 2024, there are no material legal or regulatory proceedings pending or known to be contemplated against the Company or its properties.