FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurement Inputs

The following summarizes the ranges of discount rates and prepayment rates used to arrive at the estimated fair values of the Company’s loans receivable:

	March 31, 2022		December 31, 2021
	Discount Rate	Prepayment Rate	Discount Rate	Prepayment Rate
SBA 7(a) loans receivable, subject to credit risk	6.50% - 8.50%	4.33% - 17.50%	6.25% - 8.25%	5.00% - 17.50%
SBA 7(a) loans receivable, subject to loan-backed notes	6.00% - 8.00%	5.00% - 17.50%	5.75% - 7.75%	5.00% - 17.50%
SBA 7(a) loans receivable, paycheck protection program	1.00%	N/A	1.00%	N/A
SBA 7(a) loans receivable, subject to secured borrowings	7.25% - 8.00%	5.00% - 17.50%	7.00% - 7.75%	5.00% - 17.50%

Schedule of Fair Values of Financial Instrument Not Recorded at Fair Value on a Recurring Basis

The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on the Company’s consolidated balance sheets are as follows (dollar amounts in thousands):

	March 31, 2022				December 31, 2021
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Level
Assets:
SBA 7(a) loans receivable, subject to credit risk	$	46,118	$	47,726	$	42,416	$	44,399	3
SBA 7(a) loans receivable, subject to loan-backed notes	$	16,901	$	18,380	$	18,077	$	19,635	3
SBA 7(a) loans receivable, paycheck protection program	$	3,287	$	3,387	$	4,903	$	5,050	3
SBA 7(a) loans receivable, subject to secured borrowings	$	6,491	$	6,575	$	6,891	$	6,976	3
SBA 7(a) loans receivable, held for sale	$	6,607	$	7,111	$	1,256	$	1,355	3
Liabilities:
Mortgages payable (1)	$	97,100	$	96,030	$	97,100	$	100,838	2, 3
Junior subordinated notes (1)	$	27,070	$	24,518	$	27,070	$	24,378	3

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(1)The carrying amounts for the mortgage payable and junior subordinated notes represents the principal outstanding amounts, excluding deferred debt issuance costs and discounts.

Schedule of Fair Value, Assets Measured on Recurring Basis

The estimated fair values of those financial instruments which are recorded at fair value on a recurring basis on the Company’s consolidated balance sheets are as follows (dollar amounts in thousands):

	Estimated Fair Value
	March 31, 2022		December 31, 2021		Level
Assets:
Investment in unconsolidated entity (1)	$	22,528	$	—	3

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(1)Represents the Company’s equity-method investment in 1910 Sunset Blvd which was acquired in February 2022 and was carried at cost as of March 31, 2022.

Schedule of Fair Value on a Recurring Basis

The following table details the Company’s share of the Unconsolidated Joint Venture measured at fair value on a recurring basis using Level 3 inputs ($ in thousands):

	Investment in Unconsolidated Entity
Balance as of December 31, 2021	$	—
Purchases	22,408
Income from unconsolidated entity	120
Balance as of March 31, 2022	$	22,528