Subordinate Loans

The Company’s subordinate loan portfolio was comprised of the following at September 30, 2013:



Description	Date of Investment	Maturity Date	Original Face Amount		Current Face Amount		Carrying Value		Coupon
Office - Michigan	May-10	Jun-20	$	9,000	$	8,879	$	8,879	Fixed
Ski Resort - California	Apr-11	May-17	40,000		40,000		39,812		Fixed
Hotel Portfolio – New York (1)	Aug-11	July-14	25,000		25,000		25,000		Floating
Retail Center – Virginia (2)	Oct-11	Oct-14	25,000		22,216		22,216		Fixed
Hotel– New York (3)	Jan-12	Feb-14	15,000		15,000		15,156		Fixed
Mixed Use – North Carolina	Jul-12	Jul-22	6,525		6,525		6,525		Fixed
Office Complex - Missouri	Sept-12	Oct-22	10,000		9,883		9,883		Fixed
Hotel Portfolio – Various (3)	Nov-12	Nov-15	50,000		48,697		48,616		Floating
Condo Conversion – NY, NY (4)	Dec-12	Jan-15	350		350		—		Floating
Condo Construction – NY, NY (3)	Jan-13	Jul-17	60,000		64,612		64,094		Fixed
Multifamily Conversion – NY, NY (3)	Jan-13	Dec-14	18,000		18,000		17,889		Floating
Hotel Portfolio – Rochester, MN	Jan-13	Feb-18	25,000		24,840		24,840		Fixed
Warehouse Portfolio - Various	May-13	May-23	32,000		32,000		32,000		Fixed
Multifamily Conversion – NY, NY (5)	May-13	Jun-14	44,000		44,000		43,781		Floating
Office Condo - NY, NY	Jul-13	Jul-22	14,000		14,000		13,557		Fixed
Condo Conversion – NY, NY (6)	Aug-13	Sept-15	294		294		—		Floating
Mixed Use - Pittsburgh, PA (7)	Aug-13	Aug-16	22,500		22,500		22,306		Floating
Total/Weighted Average			$	396,669	$	396,796	$	394,554	12.04	%


(1)	Includes two one-year extension options subject to certain conditions and the payment of a fee for the fourth and fifth year extensions.


(2)	Includes two one-year extension options subject to certain conditions.


(3)	Includes a one-year extension option subject to certain conditions and the payment of an extension fee.


(4)	Includes two one-year extension options subject to certain conditions and the payment of a fee for each extension. As of September 30, 2013, the Company had $34,650 of unfunded loan commitments related to this loan.


(5)	Includes a three-month extension option subject to certain conditions and the payment of an extension fee.


(6)	Includes a one-year extension option subject to certain conditions and the payment of an extension fee. As of September 30, 2013, the Company had $29,106 of unfunded loan commitments related to this loan.


(7)	Includes two one-year extension options subject to certain conditions and the payment of a fee for each extension.

In February 2013, the Company received principal repayment on two mezzanine loans totaling $50,000 secured by a portfolio of retail shopping centers located throughout the United States. In connection with the repayment, the Company received a yield maintenance payment totaling $2,500. With the yield maintenance payment, the Company realized a 15% IRR on its mezzanine loan investment. For a description of how the IRR is calculated, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition and Results of Operations – Investments”.

In June 2013, the Company received the repayment of a $15,000 mezzanine loan secured by a hotel in New York City. In connection with the repayment, the Company received a yield maintenance payment totaling $1,233. With the yield maintenance payment, the Company realized a 19% IRR on its mezzanine loan investment. For a description of how the IRR is calculated, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition and Results of Operations – Investments”.

The Company’s subordinate loan portfolio was comprised of the following at December 31, 2012:



Description	Date of Investment	Maturity Date	Original Face Amount		Current Face Amount		Carrying Value		Coupon
Senior Mezz - Retail - Various	Dec-09	Dec-19	$	30,000	$	30,000	$	30,000	Fixed
Junior Mezz - Retail - Various	Dec-09	Dec-19	20,000		20,000		20,000		Fixed
Office - Michigan	May-10	Jun-20	9,000		8,912		8,912		Fixed
Ski Resort - California	Apr-11	May-17	40,000		40,000		39,831		Fixed
Hotel Portfolio – New York (1)	Aug-11	July-13	25,000		25,000		25,000		Floating
Retail Center – Virginia (2)	Oct-11	Oct-14	25,000		26,243		26,243		Fixed
Hotel– New York (3)	Jan-12	Feb-14	15,000		15,000		15,013		Fixed
Hotel– New York (4)	Mar-12	Mar-14	15,000		15,000		15,000		Floating
Mixed Use – North Carolina	Jul-12	Jul-22	6,525		6,525		6,525		Fixed
Office Complex - Missouri	Sept-12	Oct-22	10,000		9,979		9,979		Fixed
Hotel Portfolio - Various (5)	Nov-12	Nov-15	50,000		49,950		49,743		Floating
Condo Conversion – NY, NY (6)	Dec-12	Jan-15	350		350		—		Floating
Total/Weighted Average			$	245,875	$	246,959	$	246,246	12.46	%


(1)	Includes three one-year extension options subject to certain conditions and the payment of a fee for the fourth and fifth year extensions.


(2)	Includes two one-year extension options subject to certain conditions.


(3)	Includes a one-year extension option subject to certain conditions and the payment of an extension fee.


(4)	Includes two one-year extension options subject to certain conditions and the payment of a fee for the second extension.


(5)	Includes a one-year extension option subject to certain conditions and the payment of an extension fee.


(6)	Includes two one-year extension options subject to certain conditions and the payment of a fee for each extension. As of December 31, 2012, the Company had $34,650 of unfunded loan commitments related to this loan.

The Company evaluates its loans for possible impairment on a quarterly basis. See “Note 5 – Commercial Mortgage Loans” for a summary of the metrics reviewed. The Company has determined that an allowance for loan loss was not necessary at September 30, 2013 and December 31, 2012.