Debt and Preferred Equity Investments

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

DEBT AND PREFERRED EQUITY SECURITIES

5. DEBT AND PREFERRED EQUITY INVESTMENTS

As of March 31, 2021, the Company held one debt investment and one preferred equity investment in entities owning real estate assets. The Company accounts for these mandatorily redeemable investments as notes receivable, which are included within “Other assets” on the consolidated balance sheets. As of March 31, 2021, all debt and preferred equity investments were performing in accordance with their respective terms and remain on accrual status.

Austin Preferred Equity Investment

On December 31, 2020, the Company invested $50.0 million in exchange for a preferred equity interest in a single-purpose entity that owns two stabilized office buildings located in Austin, Texas. The preferred equity interest accrues a 9.0% annual return, compounded and paid monthly. The investment is required to be redeemed no later than December 31, 2023 (subject to a one-year extension option).

1919 Venture Note Receivable

During 2018, each of the Company and the other equity partner in 1919 Venture, an unconsolidated real estate venture, provided a $44.4 million mortgage loan to 1919 Venture and, as a result, the Company recorded a $44.4 million related-party note receivable from 1919 Venture. The loan bears interest at a fixed 4.0% per annum interest rate with a scheduled maturity on June 25, 2023. 1919 Venture used the proceeds from the loans to repay its then outstanding $88.8 million construction loan.