10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One):
ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2014
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                    .

Commission File Number 1-13610

CIM COMMERCIAL TRUST CORPORATION
(Exact name of registrant as specified in its charter)

Maryland (State or other jurisdiction of incorporation or organization)	75-6446078 (I.R.S. Employer Identification No.)
17950 Preston Road, Suite 600, Dallas, TX 75252 (Address of principal executive offices)	(972) 349-3200 (Registrant's telephone number)

        Indicate by check mark whether the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. YES o    NO ý

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ý    NO o

        Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). YES ý    NO o

        Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o Accelerated filer ý Non-accelerated filer o
(Do not check if a
smaller reporting company) Smaller reporting company o

        Indicate by check mark whether the Registrant is a shell company (as defined in Exchange Act Rule 12b-2). YES o    NO ý

        As of August 5, 2014, the Registrant had outstanding 97,581,598 shares of common stock, par value $0.001 per share.

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

INDEX

			PAGE NO.
PART I.	Financial Information
	Item 1.	Financial Statements
		Consolidated Balance Sheets—June 30, 2014 and December 31, 2013 (Unaudited)		2
		Consolidated Statements of Operations and Comprehensive Income—Three and Six Months Ended June 30, 2014 and 2013 (Unaudited)		3
		Consolidated Statements of Equity—Six Months Ended June 30, 2014 and 2013 (Unaudited)		4
		Consolidated Statements of Cash Flows—Six Months Ended June 30, 2014 and 2013 (Unaudited)		5
		Notes to Consolidated Financial Statements (Unaudited)		6
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		35
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		49
	Item 4.	Controls and Procedures		50
PART II.	Other Information
	Item 1.	Legal Proceedings		51
	Item 1A.	Risk Factors		51
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		51
	Item 3.	Defaults Upon Senior Securities		51
	Item 4.	Mine Safety Disclosures		51
	Item 5.	Other Information		51
	Item 6.	Exhibits		51

PART I
Financial Information

ITEM 1.

Financial Statements

1

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2014 AND DECEMBER 31, 2013

(In thousands, except share data)

	June 30, 2014			December 31, 2013
	(Unaudited)
ASSETS
Investments in real estate—net	$	1,711,510		$	1,682,165
Cash and cash equivalents		20,030			16,796
Restricted cash		7,208			6,672
Loans receivable—net		193,319			—
Accounts receivable and interest receivable—net		9,990			9,303
Deferred rent receivable and charges—net		89,959			87,606
Other intangible assets—net		24,014			22,282
Other assets		16,668			9,653
TOTAL ASSETS	$	2,072,698		$	1,834,477
LIABILITIES AND EQUITY
LIABILITIES:
Debt	$	601,303		$	395,105
Accounts payable and accrued expenses		27,013			26,109
Intangible liabilities—net		9,225			8,800
Due to related parties		8,890			6,807
Other liabilities		27,366			21,173
Total liabilities		673,797			457,994
COMMITMENTS AND CONTINGENCIES (Note 14)
EQUITY:
Common stock, $0.001 and $0.05 par value; 200,000,000 and 20,000,000 shares authorized; 97,688,863 and 4,400,000 shares issued; and 97,581,598 and 4,400,000 shares outstanding at June 30, 2014 and December 31, 2013, respectively		98			220
Preferred stock, $0.01 par value, none and 65,028,571 shares outstanding at June 30, 2014 and December 31, 2013, respectively		—			650
Additional paid-in capital		1,823,675			1,772,821
Distributions in excess of earnings		(422,691	)		(399,953	)
Stockholders' equity before treasury stock		1,401,082			1,373,738
Less: Treasury stock, at cost, 107,265 shares outstanding at June 30, 2014		(4,901	)		—
Total stockholders' equity		1,396,181			1,373,738
Noncontrolling interests		2,720			2,745
Total equity		1,398,901			1,376,483
TOTAL LIABILITIES AND EQUITY	$	2,072,698		$	1,834,477

The accompanying notes are an integral part of these consolidated financial statements.

2

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013

(In thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(Unaudited)
REVENUES:
Rental and other property income	$	60,804		$	55,968		$	120,626		$	111,135
Expense reimbursements		2,646			2,597			4,997			5,047
Interest and other income		8,008			1,273			9,958			1,964
		71,458			59,838			135,581			118,146
EXPENSES:
Rental and other property operating		30,439			25,232			60,025			49,953
Asset management fees and other fees to related parties		6,338			5,431			12,075			10,840
Interest		4,939			4,725			9,156			9,402
General and administrative		3,610			715			4,789			1,257
Transaction costs		32			1,394			500			1,394
Depreciation and amortization		17,286			17,533			33,915			34,670
		62,644			55,030			120,460			107,516
Bargain purchase gain (Note 2)		—			—			4,918			—
INCOME BEFORE PROVISION FOR INCOME TAXES		8,814			4,808			20,039			10,630
Provision for income taxes		(300	)		—			(308	)		—
NET INCOME		8,514			4,808			19,731			10,630
Net income attributable to noncontrolling interests		(115	)		(113	)		(113	)		(109	)
NET INCOME ATTRIBUTABLE TO STOCKHOLDERS	$	8,399		$	4,695		$	19,618		$	10,521
COMPREHENSIVE INCOME	$	8,399		$	4,695		$	19,618		$	10,521
NET INCOME PER SHARE:
Basic	$	0.09		$	0.05		$	0.20		$	0.11
Diluted	$	0.09		$	0.05		$	0.20		$	0.11
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		97,571			95,440			96,758			95,440
Diluted		97,576			95,440			96,764			95,440

The accompanying notes are an integral part of these consolidated financial statements.

3

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2014 AND 2013

(In thousands, except per share data)

	Six Months Ended June 30, 2013
	Common Stock Outstanding		Common Stock Par Value		Preferred Stock Outstanding		Preferred Stock Par Value		Additional Paid-in Capital		Distributions In Excess Of Earnings			Treasury Stock		Noncontrolling Interests			Total Equity
	(Unaudited)
Balances, January 1, 2013		4,400,000	$	220		65,028,571	$	650	$	1,772,789	$	(310,384	)	$	—	$	2,798		$	1,466,073
Contributions		—		—		—		—		32		—			—		—			32
Distributions		—		—		—		—		—		(41,035	)		—		(150	)		(41,185	)
Net income		—		—		—		—		—		10,521			—		109			10,630
Balances, June 30, 2013		4,400,000	$	220		65,028,571	$	650	$	1,772,821	$	(340,898	)	$	—	$	2,757		$	1,435,550

	Six Months Ended June 30, 2014
	Common Stock Outstanding			Common Stock Par Value			Preferred Stock Outstanding			Preferred Stock Par Value			Additional Paid-in Capital			Distributions In Excess Of Earnings			Treasury Stock			Noncontrolling Interests			Total Equity
	(Unaudited)
Balances, January 1, 2014		4,400,000		$	220			65,028,571		$	650		$	1,772,821		$	(399,953	)	$	—		$	2,745		$	1,376,483
Distibutions pre- merger		—			—			—			—			—			(16,100	)		—			—			(16,100	)
Contributions from noncontrolling interests		—			—			—			—			—			—			—			10			10
Distibutions to noncontrolling interests		—			—			—			—			—			—			—			(148	)		(148	)
Reverse acquisition capital transaction		2,119,244			111			—			—			49,400			—			(4,901	)		—			44,610
Conversion of preferred stock to common stock		91,039,999			910			(65,028,571	)		(650	)		(260	)		—			—			—			—
Change in par value		—			(1,143	)		—			—			1,143			—			—			—			—
Exercise of stock options		14,500			—			—			—			201			—			—			—			201
Stock based compensation expense		8,000			—			—			—			373			—			—			—			373
Retirement of fractional shares		(145	)		—			—			—			(3	)		—			—			—			(3	)
Common dividends ($0.26875 per share)		—			—			—			—			—			(21,671	)		—			—			(21,671	)
Preferred dividends ($0.0705 per share)		—			—			—			—			—			(4,585	)		—			—			(4,585	)
Net income		—			—			—			—			—			19,618			—			113			19,731
Balances, June 30, 2014		97,581,598		$	98			—		$	—		$	1,823,675		$	(422,691	)	$	(4,901	)	$	2,720		$	1,398,901

The accompanying notes are an integral part of these consolidated financial statements.

4

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2014 AND 2013

(In thousands)

	Six Months Ended June 30,
	2014			2013
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	19,731		$	10,630
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred rent, and amortization of intangible assets, liabilities and lease inducements		(1,874	)		(4,465	)
Depreciation and amortization		33,915			34,670
Bargain purchase gain		(4,918	)		—
Straight line rent, below-market ground lease and amortization of intangible assets		933			933
Amortization of deferred loan costs		652			299
Amortization of premiums and discounts on debt		(562	)		(403	)
Unrealized premium adjustment		782			—
Amortization and accretion on loans receivable, net		(1,837	)		—
Bad debt expense		126			467
Deferred income taxes		55			—
Stock-based compensation		373			—
Loans funded, held for sale		(16,753	)		—
Proceeds from sale of guaranteed loans		12,999			—
Principal collected on loans		2,071			—
Other operating activity		(300	)		—
Changes in operating assets and liabilities:
Accounts receivable and interest receivable		(58	)		(2,798	)
Other assets		(2,151	)		(1,739	)
Accounts payable and accrued expenses		(6,287	)		(2,422	)
Deferred leasing costs		(4,542	)		(1,839	)
Other liabilities		2,232			(1,264	)
Due to related parties		2,083			180
Net cash provided by operating activities		36,670			32,249
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to investments in real estate		(12,903	)		(11,384	)
Acquisition of real estate properties		(44,936	)		—
Loans funded		(8,438	)		—
Cash and cash equivalents acquired in connection with the merger		3,185			—
Principal collected on loans		25,348			—
Restricted cash		(536	)		397
Other investing activity		160			—
Net cash used in investing activities		(38,120	)		(10,987	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of mortgages payable		(3,194	)		(4,264	)
Proceeds from unsecured revolving lines of credit, revolving credit facility and term note		142,900			26,000
Payment of unsecured revolving lines of credit, revolving credit facility and term note		(32,900	)		—
Payment of principal on secured borrowings—government guaranteed loans		(2,071	)		—
Proceeds from secured borrowings—government guaranteed loans		1,978			—
Payment of deferred loan costs		(447	)		(8	)
Payment of dividends		(26,256	)		—
Payment of special dividend and dividend assumed in acquisition		(59,286	)		—
Distributions pre-merger		(16,100	)		(41,035	)
Contributions		—			32
Contributions from noncontrolling interests		10			—
Proceeds from issuance of stock		201			—
Retirement of fractional shares of common stock		(3	)
Noncontrolling interests' distributions		(148	)		(150	)
Net cash provided by (used in) financing activities		4,684			(19,425	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		3,234			1,837
CASH AND CASH EQUIVALENTS:
Beginning of period		16,796			31,514
End of period	$	20,030		$	33,351
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	$	9,055		$	9,502
Federal income taxes paid	$	334		$	—
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Additions to investments in real estate included in accounts payable and accrued expenses	$	3,168		$	2,106
Additions to deferred loan costs included in accounts payable and accrued expenses	$	120		$	—

The accompanying notes are an integral part of these consolidated financial statements.

5

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

1. ORGANIZATION AND OPERATIONS

        CIM Commercial Trust Corporation ("CIM Commercial") or together with its wholly-owned subsidiaries, "we," "us" or "our," invests in substantially stabilized real estate assets located in high-population density, high- barrier-to-entry urban markets, which include traditional downtown areas and urban main streets that lie within the metropolitan areas of the United States of America. We also obtain income from the yield and other related fee income earned on our investments from our lending activities, which have principally been to borrowers in the hospitality industry. We were originally organized in 1993 as PMC Commercial Trust ("PMC Commercial"), a Texas real estate investment trust.

        On April 28, 2014, PMC Commercial's charter was amended to increase the authorized shares of common stock of PMC Commercial from 100,000,000 to 1,000,000,000 shares (20,000,000 and 200,000,000 after giving effect to the reverse stock split described below) and PMC Commercial changed its state of incorporation (the "Reincorporation") from Texas to Maryland by means of a merger of PMC Commercial with and into a newly formed, wholly-owned subsidiary Maryland corporation. In addition, we changed our name to CIM Commercial Trust Corporation on April 29, 2014. Our common stock ("Common Stock") is currently traded on the NASDAQ Global Market (symbol "CMCT").

        On April 28, 2014, we filed Articles of Amendment (the "Reverse Split Amendment") to effectuate a one-for-five reverse stock split of the Common Stock, effective April 29, 2014. Pursuant to the reverse stock split, each five shares of Common Stock issued and outstanding immediately prior to the effective time of the reverse stock split were converted into one (1) share of Common Stock. Fractional shares of Common Stock were not issued as a result of the reverse stock split; instead, holders of pre-split shares of Common Stock who otherwise would have been entitled to receive a fractional share of Common Stock received an amount in cash equal to the product of the fraction of a share multiplied by the closing price of the Common Stock (as adjusted for the one-for-five reverse stock split) on April 28, 2014. In connection with and immediately following the filing of the Reverse Split Amendment, the Company filed Articles of Amendment (the "Par Value Amendment") to decrease the par value of the Common Stock issued and outstanding to $0.001 per share, effective April 29, 2014, subsequent to the effective time of the Reverse Split Amendment. All per share and outstanding share information has been presented to reflect the reverse stock split.

2. MERGER

        On July 8, 2013, our predecessor, PMC Commercial, entered into a merger agreement (the "Merger Agreement") with CIM Urban REIT, LLC ("CIM Urban REIT") and subsidiaries of the respective parties. CIM Urban REIT was a private commercial REIT and was the owner of CIM Urban Partners, LP ("CIM Urban"). The transaction (the "Merger") was completed on March 11, 2014 (the "Acquisition Date").

        The Merger Agreement provided for a business combination between PMC Commercial and CIM Urban. Pursuant to the Merger Agreement, PMC Commercial issued 4,400,000 shares of Common Stock and 65,028,571 shares of preferred stock. Each share of preferred stock converted into 1.4 shares of Common Stock (as adjusted for the one-for-five reverse stock split) in April 2014, resulting in the

6

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

2. MERGER (Continued)

issuance of approximately 91,039,999 shares of Common Stock. This represented approximately 97.8% of PMC Commercial's outstanding stock on the Acquisition Date.

        All Common Stock that was outstanding immediately prior to the closing of the Merger remained outstanding following the Acquisition Date. In addition, stockholders of record at the close of the business day prior to the Acquisition Date received a special cash dividend of $27.50 per share of Common Stock, which was paid on March 25, 2014.

        The Merger was accounted for as a reverse acquisition under the acquisition method of accounting with CIM Urban considered to be the accounting acquirer based upon the terms of the Merger Agreement. Based on the determination that CIM Urban was the accounting acquirer in the transaction, CIM Urban allocated the purchase price to the fair value of PMC Commercial's assets and liabilities as of the Acquisition Date.

        Accordingly, the accompanying financial statements (1) include the historical financial information for CIM Urban for all periods presented, (2) include the assets and liabilities of PMC Commercial acquired on March 11, 2014 in the consolidated balance sheet as of June 30, 2014 and (3) include the results of PMC Commercial's operations and cash flows in the consolidated statements of operations and comprehensive income and cash flows for the period from the Acquisition Date through June 30, 2014. The equity of CIM Commercial is the historical equity of CIM Urban retroactively restated to reflect the number of shares of stock issued by PMC Commercial pursuant to the Merger Agreement. In connection with the reverse acquisition, for purposes of presenting equity for CIM Commercial, the historical stockholders of PMC Commercial were deemed to have been issued 2,119,244 shares of Common Stock (2,226,509 shares of Common Stock, less 107,265 shares of treasury stock) on the Acquisition Date.

        Consideration Transferred—The fair value of the consideration transferred in the reverse acquisition is determined based on the number of shares of stock the accounting acquirer would have to issue to the stockholders of the accounting acquiree in order to provide the same ratio of ownership in the combined entity following the completion of the Merger, and was determined to be the outstanding stock of PMC Commercial as of the Acquisition Date. The fair value of the consideration transferred was based on the most reliable measure, which was determined to be the market price of PMC Commercial stock as of the Acquisition Date. The computation of the fair value of the consideration transferred, based on the market price of PMC Commercial stock on the Acquisition Date, is as follows:

	(in thousands, except per share data)
PMC Commercial common stock outstanding		2,119
Equity consideration price per share of common stock	$	21.05
Fair value of the equity consideration		44,610
Payment in cash—special dividend		58,279
Total purchase price	$	102,889

7

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

2. MERGER (Continued)

        Purchase Price Allocation—As CIM Urban was the accounting acquirer in the business combination, it has allocated the purchase price to PMC Commercial's individually identifiable assets acquired and liabilities assumed based on their estimated fair values on the Acquisition Date. A bargain purchase gain was recorded as of the Acquisition Date in the amount equal to the excess of the fair value of the identifiable net assets acquired over the total purchase price.

        The following table summarizes the allocation of the purchase price:

	(in thousands)
Assets
Cash and cash equivalents	$	3,185
Loans receivable		207,140
Accounts receivable and interest receivable		755
Other assets		5,396
Intangible assets		2,957
Total assets acquired		219,433
Liabilities
Debt		99,849
Accounts payable and accrued expenses		7,396
Special dividend liability and dividend payable		59,286
Other liabilities		3,374
Total liabilities assumed		169,905
Net identifiable assets acquired		49,528
Bargain purchase gain		(4,918	)
Net purchase price	$	44,610

        Pro Forma Financial Information—The following pro forma consolidated results of net income for the six months ended June 30, 2014 and 2013 assume the business combination was completed as of January 1, 2013:

	Six Months Ended June 30,
	2014		2013
	(in thousands, except per share amounts)
Pro forma revenues	$	138,916	$	128,640
Pro forma net income	$	15,489	$	14,575
Pro forma basic earnings per share	$	0.16	$	0.15
Pro forma diluted earnings per share	$	0.16	$	0.15

        The pro forma amounts include the historical operating results of CIM Urban and PMC Commercial prior to the business combination, with adjustments directly attributable to the business

8

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

2. MERGER (Continued)

combination. The pro forma results for the six months ended June 30, 2014 exclude transaction costs of $3,046,000 and the $4,918,000 bargain purchase gain recorded on the Acquisition Date.

3. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        For more information regarding our significant accounting policies and estimates, please refer to "Summary of Significant Accounting Policies" contained in Note 3 to CIM Urban's consolidated financial statements for the year ended December 31, 2013, included in our Current Report on Form 8-K/A dated May 9, 2014.

        Interim Financial Information—The accompanying interim consolidated financial statements of CIM Commercial have been prepared by our management in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Certain information and note disclosures required for annual financial statements have been condensed or excluded pursuant to Securities and Exchange Commission ("SEC") rules and regulations. Accordingly, the interim consolidated financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. Our accompanying interim consolidated financial statements should be read in conjunction with CIM Urban's audited consolidated financial statements and the notes thereto, included in our Current Report on Form 8-K/A dated May 9, 2014.

        Principles of Consolidation—The consolidated financial statements include the accounts of CIM Commercial and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

        Investments in Real Estate—Real estate acquisitions are recorded at cost as of the acquisition date. Costs related to the acquisition of properties are expensed as incurred. Investments in real estate are stated at depreciated cost. Depreciation and amortization are recorded on a straight line basis over the estimated useful lives as follows:

Buildings and improvements	15 - 40 years
Furniture, fixtures, and equipment	3 - 5 years
Tenant improvements	Shorter of the useful lives or the terms of the related leases

        Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred.

        Investments in real estate are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount to the future net cash

9

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

3. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

flows, undiscounted and without interest, expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The estimated fair value of the asset group identified for step two testing is based on either the income approach with market discount rate, terminal capitalization rate and rental rate assumptions being most critical, or on the sales comparison approach to similar properties. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. No impairment of long-lived assets was recognized during the three and six months ended June 30, 2014 and 2013.

        Loans Receivable—We primarily originate loans to small businesses collateralized by first liens on the real estate of the related business. Loans receivable are carried at their unamortized principal balance less unamortized acquisition discounts and loan loss reserves, if applicable, and adjusted for capitalized loan origination costs. For loans originated under the Small Business Administration's (the "SBA") 7(a) Guaranteed Loan Program (the "SBA 7(a) Program") upon sale of the SBA guaranteed portion of the loans which are accounted for as sales, the unguaranteed portion of the loan retained by us is valued on a fair value basis and a discount is recorded as a reduction in basis of the retained portion of the loan.

        We have a quarterly review process to identify and evaluate potential exposure to loan losses. Loans that require specific identification review are identified based on one or more negative characteristics including, but not limited to, non-payment or lack of timely payment of principal and/or interest or property taxes or deterioration of the physical property. The specific identification process begins with management's evaluation of the estimated fair value of the loan utilizing the present value of the expected future cash flows discounted at the loan's effective interest rate and/or an estimation of underlying collateral values. The probability of loss is then determined based on various factors including our historical experience with similar borrowers and/or individual borrower or collateral characteristics, and in certain circumstances, the strength of the guarantors. The liquidation probability is then applied to the identified loss exposure to determine the general or specific reserve for that loan.

        At the Acquisition Date, the carrying value of our loans was adjusted to estimated fair market value and acquisition discounts of $33,907,000 were recorded, which is being accreted to interest income using the effective interest method. We will establish a general loan loss reserve when available information indicates that it is probable a loss has occurred based on the carrying value of the portfolio and the amount of the loss can be reasonably estimated. Significant judgment is required in determining the general loan loss reserve, including estimates of the likelihood of default and the estimated fair value of the collateral. The general loan loss reserve includes those loans, which may have negative characteristics which have not yet become known to us. In addition to the reserves established on loans not considered impaired that have been evaluated under a specific evaluation, the general loan loss reserve uses a consistent methodology to determine a loss percentage to be applied to loan balances. These loss percentages are based on many factors, primarily cumulative and recent loss history and general economic conditions.

        We recognized interest income and fees for the three and six months ended June 30, 2013, related to a first mortgage note on a hotel located near the Los Angeles Airport ("LAX") of $0 and $316,000,

10

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

3. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

respectively. On October 8, 2013, we submitted the highest bid at a foreclosure auction and took possession of the hotel. The mortgage note investment basis was transferred to the property components at their relative fair values on title transfer.

        Deferred Rent Receivable and Charges—Deferred rent receivable and charges consist of deferred rent, deferred loan costs and deferred leasing costs. Deferred rent receivable is $50,971,000 and $49,543,000 at June 30, 2014, and December 31, 2013, respectively. Deferred loan costs, which represent legal and third-party fees incurred in connection with our borrowing activities, are capitalized and amortized to interest expense on a straight line basis over the life of the related loan, approximating the effective interest method. Deferred loan costs of $6,315,000 and $5,748,000 are presented net of accumulated amortization of $4,272,000 and $3,620,000 at June 30, 2014, and December 31, 2013, respectively. Deferred leasing costs, which represent lease commissions and other direct costs associated with the acquisition of tenants, are capitalized and amortized on a straight line basis over the terms of the related leases. Deferred leasing costs of $60,368,000 and $55,826,000 are presented net of accumulated amortization of $23,423,000 and $19,891,000 at June 30, 2014, and December 31, 2013, respectively.

        Noncontrolling Interests—Noncontrolling interests represent interests in the various properties not owned by us.

        Consolidation Considerations for Our Investments in Real Estate—Accounting Standards Codification ("ASC") 810-10, Consolidation, addresses how a business enterprise should evaluate whether it has a controlling interest in an entity through means other than voting rights that would require the entity to be consolidated. We analyze our investments in real estate in accordance with this accounting standard to determine whether they are variable interest entities, and if so, whether we are the primary beneficiary. Our judgment with respect to our level of influence or control over an entity and whether we are the primary beneficiary of a variable interest entity involves consideration of various factors, including the form of our ownership interest, our voting interest, the size of our investment (including loans), and our ability to participate in major policy-making decisions. Our ability to correctly assess our influence or control over an entity affects the presentation of these investments in our consolidated financial statements.

        Use of Estimates—The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

        Reclassifications—Certain prior-period amounts have been reclassified to conform with the current-period presentation. For the three and six months ended June 30, 2013, hotel revenues of $10,555,000 and $20,132,000, respectively, have been reclassified to rental and other property income, other income of $1,266,000 and $1,640,000, respectively, has been reclassified to interest and other

11

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

3. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

income, and hotel operating expenses of $7,042,000 and $13,481,000, respectively, have been reclassified to rental and other property operating expenses.

        Recently Issued Accounting Pronouncements—In April 2014, the Financial Accounting Standards Board ("the FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360). Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions that do not meet the discontinued-operations criteria. The revised guidance is effective prospectively to all disposals (or classifications as held for sale) that occur in annual periods (and interim periods therein) beginning on or after December 15, 2014, with early adoption permitted. Entities are prohibited from applying the new ASU to any component, equity method investment, or acquired business that is classified as held for sale before the adoption date. We early adopted this guidance during the second quarter of 2014, and the adoption did not have a material impact on our consolidated financial statements.

        In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including the guidance on real estate de-recognition for most transactions. For public entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early application is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in the ASU. The modified approach provides entities relief from having to restate and present comparable prior-year financial statement information; however, entities will still need to evaluate existing contracts as of the date of initial adoption under the ASU to determine whether a cumulative adjustment is necessary. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

4. ACQUISITIONS

        The fair value of real estate acquired is recorded to (1) the acquired tangible assets, consisting of land; land improvements; building and improvements; furniture, fixtures, and equipment; tenant improvements; and (2) identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases and tenant relationships, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. Above-market ground leases are recorded based on the respective fair value of the ground leases.

12

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

4. ACQUISITIONS (Continued)

        During the six months ended June 30, 2014, we acquired a 100% fee-simple interest in an office building located in Los Angeles from an unrelated third party. Built in 1984, the building has approximately 143,000 square feet of rentable space and is located in the Mid-Wilshire submarket of Los Angeles. The acquisition was funded with proceeds from a drawdown on one of CIM Urban's unsecured credit facilities.

Property	Asset Type	Date of Acquisition		Number of Buildings		Rentable Square Feet		Purchase Price
								(in thousands)
4750 Wilshire Blvd., Los Angeles, CA	Office		April 18, 2014		1		143,000	$	44,936

        The results of the operations of the property acquired have been included in the consolidated statements of operations from the date of acquisition. The fair value of the assets acquired and liabilities assumed for the above-noted acquisition during the six months ended June 30, 2014 are as follows:

	2014 Acquisition
	(in thousands)
Land	$	16,633
Land improvements		348
Building and improvements		27,947
Tenant improvements		691
Acquired in-place leases(1)		1,087
Acquired below-market leases(2)		(1,770	)
Net assets acquired	$	44,936

(1)

In-place leases have a weighted average amortization period of 5.0 years.

(2)

Below-market leases have a weighted average amortization period of 5.0 years.

        Acquisition related expenses of $32,000 associated with the acquisition of real estate in 2014 were expensed as incurred during the six months ended June 30, 2014, respectively. No acquisitions of real estate were made during the six months ended June 30, 2013.

13

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

5. INVESTMENTS IN REAL ESTATE

        Investments in real estate consist of the following:

	June 30, 2014			December 31, 2013
	(in thousands)
Land	$	347,693		$	331,060
Land improvements		27,884			27,536
Buildings and improvements		1,486,103			1,454,854
Furniture, fixtures, and equipment		23,332			23,051
Tenant improvements		191,451			183,915
Work in progress		12,137			9,987
		2,088,600			2,030,403
Accumulated depreciation		(377,090	)		(348,238	)
Net investments in real estate	$	1,711,510		$	1,682,165

6. LOANS RECEIVABLE

        Loans receivable consist of the following:

	June 30, 2014
	(in thousands)
Commercial mortgage loans	$	120,153
SBA 7(a) loans, subject to secured borrowings		40,039
SBA 7(a) loans		32,998
Loans receivable		193,190
Deferred capitalized costs		129
Net loans receivable	$	193,319

        Commercial mortgage loans—Represents loans to small businesses primarily collateralized by first liens on the real estate of the related business.

        SBA 7(a) loans, subject to secured borrowings—Represents the government guaranteed portion of loans which were sold with the proceeds received from the sale reflected as secured borrowings—government guaranteed loans (included in debt on our consolidated balance sheet). There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal.

        SBA 7(a) loans—Represents the non-government guaranteed retained portion of loans originated under the SBA 7(a) Program and the government guaranteed portion of loans that have not yet been fully funded or sold.

14

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

6. LOANS RECEIVABLE (Continued)

        Aging—The following tables represent an aging of our "Loans Receivable Subject to Credit Risk" (loans receivable less SBA 7(a) loans, subject to secured borrowings as the SBA has guaranteed payment of the principal).

June 30, 2014	Commercial Mortgage Loans				SBA 7(a) Loans				Totals
	(dollars in thousands)
Current	$	119,326	99.3	%	$	32,836	99.5	%	$	152,162	99.4	%
Between 29 and 59 days delinquent		—	—			162	0.5			162	0.1
Between 60 and 89 days delinquent		—	—			—	—			—	—
Over 89 days delinquent		827	0.7			—	—			827	0.5
	$	120,153	100.0	%	$	32,998	100.0	%	$	153,151	100.0	%

        Loan Portfolio Classification—Management closely monitors our loans which require evaluation for loan loss reserves based on specific identification metrics which are classified into three categories: Doubtful, Substandard and Other Assets Especially Mentioned ("OAEM"). Loans classified as Doubtful are generally loans which are not complying with their contractual terms, the collection of the balance of the principal is considered impaired and on which the fair value of the collateral is less than the remaining unamortized principal balance. These loans are typically placed on non-accrual status and are generally in the foreclosure process. Loans classified as Substandard are generally those loans that are either not complying or had previously not complied with their contractual terms and have other credit weaknesses which may make payment default or principal exposure likely but not yet certain. Loans classified as OAEM are generally loans for which the credit quality of the borrowers has temporarily deteriorated. Typically, the borrowers are current on their payments; however, they may be delinquent on their property taxes, insurance, or franchise fees or may be under agreements which provide for interest only payments during a short period of time.

        Management has classified our Loans Receivable Subject to Credit Risk as follows:

June 30, 2014	Commercial Mortgage Loans				SBA 7(a) Loans				Totals
	(dollars in thousands)
Satisfactory	$	116,527	97.0	%	$	32,368	98.1	%	$	148,895	97.2	%
OAEM		1,947	1.6			—	—			1,947	1.3
Substandard		849	0.7			539	1.6			1,388	0.9
Doubtful		830	0.7			91	0.3			921	0.6
	$	120,153	100.0	%	$	32,998	100.0	%	$	153,151	100.0	%

15

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

7. OTHER INTANGIBLE ASSETS

        A schedule of the intangible assets and liabilities and related accumulated amortization and accretion as of June 30, 2014, and December 31, 2013, is as follows:

	Assets																				Liabilities
June 30, 2014	Acquired Above-Market Leases			Acquired In-Place Leases			Tax Abatement			Advance Bookings			Franchise Affiliation Fee			Acquired Below-Market Ground Lease			Trade-Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	8,017		$	80,732		$	4,273		$	8,329		$	3,936		$	11,685		$	2,957	$	(63,093	)
Accumulated amortization		(7,487	)		(74,662	)		(1,496	)		(8,273	)		(2,785	)		(1,212	)		—		53,868
	$	530		$	6,070		$	2,777		$	56		$	1,151		$	10,473		$	2,957	$	(9,225	)
Average useful life (in years)		4			6			8			3			10			84			Indefinite		6

	Assets																		Liabilities
December 31, 2013	Acquired Above-Market Leases			Acquired In-Place Leases			Tax Abatement			Advance Bookings			Franchise Affiliation Fee			Acquired Below-Market Ground Lease			Acquired Below-Market Leases
	(in thousands)
Gross balance	$	8,017		$	79,645		$	4,273		$	8,329		$	3,936		$	11,685		$	(61,323	)
Accumulated amortization		(7,052	)		(73,463	)		(1,220	)		(8,139	)		(2,587	)		(1,142	)		52,523
	$	965		$	6,182		$	3,053		$	190		$	1,349		$	10,543		$	(8,800	)
Average useful life (in years)		4			5			8			3			10			84			6

        The amortization of the above-market leases which decreased rental and other property income were $98,000 and $196,000 for the three months ended June 30, 2014 and 2013, respectively and $435,000 and $396,000 for the six months ended June 30, 2014 and 2013, respectively. The amortization of the below-market leases included in rental and other property income were $697,000 and $796,000 for the three months ended June 30, 2014 and 2013, respectively and $1,345,000 and $1,592,000 for the six months ended June 30, 2014 and 2013, respectively. The amortization of in-place leases included in depreciation and amortization expense was $587,000 and $927,000 for the three months ended June 30, 2014 and 2013, respectively and $1,199,000 and $1,874,000 for the six months ended June 30, 2014 and 2013, respectively. Included in depreciation and amortization expense are franchise affiliation fee amortization of $99,000 for each of the three months ended June 30, 2014 and 2013, and $198,000 for each of the six months ended June 30, 2014 and 2013, respectively. The amortization of advance bookings included in depreciation and amortization expense was $67,000 and $0 for the three months ended June 30, 2014 and 2013, respectively and $134,000 and $0 for the six months ended June 30, 2014 and 2013, respectively. Tax abatement amortization of $138,000 for each of the three months ended June 30, 2014 and 2013 and $276,000 for each of the six months ended June 30, 2014 and 2013 are included in rental and other property operating expenses. Amortization of below-market ground lease obligation of $35,000 for each of the three months ended June 30, 2014 and 2013 and $70,000 for each of the six months ended June 30, 2014 and 2013 are included in rental and other property operating expenses.

16

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

7. OTHER INTANGIBLE ASSETS (Continued)

        A schedule of future amortization and accretion of acquisition related intangible assets and liabilities as of June 30, 2014, is as follows:

	Assets												Liabilities
Years Ending December 31,	Acquired Above-Market Leases		Acquired In-Place Leases		Tax Abatement		Advance Bookings		Franchise Affiliation Fee		Acquired Below-Market Ground Lease		Acquired Below-Market Leases
	(in thousands)
2014 (Six months ending December 31, 2014)	$	167	$	1,084	$	275	$	56	$	196	$	70	$	(1,246	)
2015		241		1,606		551		—		394		140		(2,435	)
2016		88		1,111		551		—		394		140		(2,368	)
2017		26		665		551		—		167		140		(2,261	)
2018		8		415		551		—		—		140		(824	)
Thereafter		—		1,189		298		—		—		9,843		(91	)
	$	530	$	6,070	$	2,777	$	56	$	1,151	$	10,473	$	(9,225	)

8. DEBT

        Information on our debt is as follows:

	June 30, 2014		December 31, 2013
	(in thousands)
Mortgage loan with a fixed interest rate of 7.66% per annum, with monthly payments of principal and interest. The loan has a 20-year amortization schedule with a $25,324,000 balance due on December 1, 2015. The loan is nonrecourse.	$	27,537	$	28,262
Mortgage loan with a fixed interest rate of 4.50% per annum, with monthly payments of interest only for 10 years, and payments of interest and principal starting in February 2022. The loan has a $42,008,000 balance due on January 5, 2027. The loan is nonrecourse.		46,000		46,000
Mortgage loan with a fixed interest rate of 5.56% per annum, with monthly payments of principal and interest. The loan has a 10-year amortization schedule with a $12,288,000 balance due on July 1, 2015. The loan is nonrecourse.		12,590		12,737
Mortgage loan with a fixed interest rate of 6.65% per annum, with monthly payments of principal and interest. The loan has a 25-year amortization schedule with a $21,136,000 balance due on July 15, 2018. The loan is nonrecourse.		33,432		34,755
Mortgage loan with a fixed interest rate of 5.06% per annum, with monthly payments of principal and interest, and a balance of $33,068,000 due on September 1, 2015. The loan is nonrecourse.		34,161		34,583

17

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

8. DEBT (Continued)

	June 30, 2014			December 31, 2013
	(in thousands)
Mortgage loans with a fixed interest rate of 5.39% per annum, with monthly payments of principal and interest, and a balance of $35,695,000 due on March 1, 2021. The loans are nonrecourse.		40,850			41,170
Mortgage loan with a fixed interest rate of 5.18% per annum, with monthly payments of principal and interest, and a balance of $26,232,000 due on June 5, 2021. The loan is nonrecourse.		30,555			30,812
		225,125			228,319
Premiums and discounts on assumed mortgages		2,373			2,786
Total Mortgages Payable		227,498			231,105
Secured borrowing principal on loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.99%		32,057			—
Secured borrowing principal on loans sold for excess spread, variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.58%		5,153			—
		37,210			—
Premiums on loans sold for a premium and excess spread		3,024			—
Total Secured borrowings—government guaranteed loans		40,234			—
Junior subordinated notes with a variable interest rate which resets quarterly based on the 90-day LIBOR plus 3.25%, with quarterly interest payments due. Balance due at maturity on March 30, 2035.		27,070			—
Term note with a fixed interest rate of 2.74%, principal and interest due at maturity on September 10, 2014.		20,000			—
Unsecured revolving line of credit with variable interest rate of prime less 50 basis points, with monthly interest payments due. Matures June 30, 2015.		700			—
Unsecured revolving lines of credit		288,000			164,000
		335,770			164,000
Discount on junior subordinated notes		(2,199	)		—
Total Other		333,571			164,000
Total Debt	$	601,303		$	395,105

18

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

8. DEBT (Continued)

        The mortgages payable are secured by deeds of trust on certain of the properties and assignments of rents.

        Secured borrowings represent sold SBA 7(a) Program loans which are treated as secured borrowings since the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Transfers and Servicing. Principal payments are dependent upon cash flows received from the underlying loans. No payment is due unless payments are received from the borrowers on the underlying loans.

        CIM Commercial's $20,000,000 term note and $25,000,000 unsecured revolving line of credit have covenants including a covenant requiring an asset coverage test (eligible loans receivable) for balances outstanding under its revolving credit facility of 3.00 times. To the extent the term note is repaid, credit availability under the revolving credit facility will increase to $40,000,000. As of June 30, 2014, $24,300,000 was available for future borrowing.

        In February 2012, CIM Urban entered into an unsecured revolving line of credit with a bank syndicate, which allows for maximum borrowings of $100,000,000. Borrowings under the line of credit are limited by certain borrowing base calculations. Outstanding advances under the line of credit bore interest at the base rate, as defined, plus 0.75% to 1.50% or LIBOR plus 1.75% to 2.50%, depending on the maximum consolidated leverage ratio, as defined, until August 2013. In August 2013, the unsecured revolving line was amended, and outstanding advances under the line bear interest at the base rate, as defined, plus 0.25% to 0.85% or LIBOR plus 1.25% to 1.85%, depending on the maximum consolidated leverage ratio, as defined. The line of credit is also subject to an unused commitment fee of 0.25% or 0.35% depending on the amount of aggregate unused commitments. The line of credit matures in February 2016, with a one-year extension option under certain conditions. As of both June 30, 2014, and December 31, 2013, $100,000,000 was outstanding under the line of credit, and $0, was available for future borrowings.

        In August 2013, CIM Urban entered into another unsecured revolving credit facility with a syndicate of banks. The credit facility provides an additional $125,000,000 of borrowing capacity that was increased to $150,000,000. CIM Urban amended the facility in April 2014 to further increase the maximum aggregate borrowing capacity under the revolving credit facility to $200,000,000. Borrowings under the revolving credit facility are limited by certain borrowing base calculations. Outstanding advances under the revolving credit facility bear interest at the base rate, as defined, plus 0.25% to 0.85% or LIBOR plus 1.25% to 1.85%, depending on the maximum consolidated leverage ratio, as defined. The revolving credit facility is also subject to an unused commitment fee of 0.25% or 0.35% depending on the amount of aggregate unused commitments. The revolving credit facility originally matured in February 2014, and was recently extended to October 10, 2014. As of June 30, 2014, and December 31, 2013, $188,000,000 and $64,000,000, respectively, was outstanding under the revolving credit facility, and $12,000,000 and $61,000,000, respectively, was available for future borrowings.

        At June 30, 2014 and December 31, 2013, CIM Commercial and CIM Urban were either in compliance with all of their respective financial covenants or had obtained waivers from the relevant lenders with respect to such compliance.

        We are currently in negotiations with two banks, as joint lead arrangers, to finalize an unsecured term loan and a revolving credit facility of $550,000,000, with an accordion feature which would

19

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

8. DEBT (Continued)

increase the maximum aggregate facilities to $850,000,000. We intend to use the proceeds of these new facilities to repay all of our outstanding term and revolving credit facilities. We expect to close the new term loan and revolving credit facilities by the end of the third quarter of 2014. However, there can be no assurance that our negotiation of the new term and revolving credit facilities will be successful or that the closing of these new facilities will occur in the time frame described above. In addition, if the new term and revolving credit facilities fail to close for any reason or closing is delayed substantially beyond the time frame described above, there can be no assurances we will be able to successfully negotiate an extension of our existing credit facilities or any increased maximum availability. However, we believe other financing sources would be available to us.

        At June 30, 2014, and December 31, 2013, accrued interest and unused commitment fee payable of $1,155,000 and $1,017,000, respectively, is included in accounts payable and accrued expenses.

        Future principal payments on our debt (face value) at June 30, 2014 are as follows:

Years Ending December 31,	Secured Borrowings Principal(1)		Mortgages Payable		All Other Principal(2)		Total
	(in thousands)
2014 (Six months ending December 31, 2014)	$	575	$	3,278	$	208,000	$	211,853
2015		1,180		77,055		700		78,935
2016		1,220		4,354		100,000		105,574
2017		1,263		4,642		—		5,905
2018		1,309		24,300		—		25,609
Thereafter		31,663		111,496		27,070		170,229
	$	37,210	$	225,125	$	335,770	$	598,105

(1)

Principal payments are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled principal payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and/or loan liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans.

(2)

Represents the revolving credit facility, term note, junior subordinated notes, and unsecured revolving lines of credit.

9. STOCK-BASED COMPENSATION PLANS

        As of the Acquisition Date, we had 19,700 options outstanding under stock-based compensation plans. The options are fully vested, and were repriced as of the Acquisition Date. Of these options, 14,500 were exercised during the six months ended June 30, 2014 for proceeds of approximately $201,000.

20

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

9. STOCK-BASED COMPENSATION PLANS (Continued)

        We granted 11,850 options on June 12, 2014 at an exercise price of $23.16 (the closing price of our Common Stock on such date). The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:

Assumptions
Expected term (years)	3.0
Risk-free interest rate	0.94	%
Expected dividend yield	3.78	%
Expected volatility	9.37	%
Expected forfeiture rate	1.0	%

        The expected term of the options granted represents the period of time that the options are expected to be outstanding and was based on historical data. The risk-free rate was based on the three-year U.S. Treasury rate corresponding to the expected term of the options. We used historical information to determine our expected volatility and forfeiture rate. We recorded compensation expense of $8,000 during the three and six months ended June 30, 2014 related to this option grant.

        On April 28, 2014, our stockholders approved the First Amendment to the PMC Commercial Trust 2005 Equity Incentive Plan (the "Plan Amendment") to increase the aggregate number of shares of Common Stock thereunder from 100,000 to 300,000 shares and increase the annual limitation on restricted Common Stock grants to all independent directors in the aggregate to 100,000 restricted shares of Common Stock and to each executive officer to no more than 4,000 restricted shares of Common Stock during any fiscal year. On March 11, 2014, we granted Common Stock awards of 2,000 restricted shares of Common Stock to each of the independent members of the board of directors (the "Board of Directors") (6,000 in aggregate) which awards were effective upon the receipt of stockholder approval of the Plan Amendment. The shares of Common Stock vest based on a year of continuous service. Compensation expense related to these restricted shares of Common Stock is being recognized over the vesting period. We recorded compensation expense of $31,000 during the three and six months ended June 30, 2014 related to these restricted shares of Common Stock.

        We issued an aggregate of 2,000 restricted shares of Common Stock to two of our executive officers on May 6, 2014. The restricted shares of Common Stock vest based on two years of continuous service with one-third of the shares of Common Stock vesting immediately upon issuance and one-third vesting at the end of each of the next two years. Compensation expense related to these restricted shares of Common Stock is being recognized over the vesting period. We recognized compensation expense of $19,000 during the three and six months ended June 30, 2014 related to these restricted shares of Common Stock.

        In accordance with the employment agreements of two of our executive officers, to the extent the executive is employed by us on January 1, 2016 and such executive is not entitled to any disability, death or severance payments, the executive would be awarded restricted shares of Common Stock as a retention bonus which would vest immediately upon grant. In aggregate, the executive officers would receive 105,000 Common Stock awards. We recorded compensation expense of $315,000 during the three and six months ended June 30, 2014 related to these Common Stock awards.

21

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

9. STOCK-BASED COMPENSATION PLANS (Continued)

        As of June 30, 2014, there was $2,017,000 of total unrecognized compensation expense related to shares of Common Stock which will be recognized over the next two years.

10. EARNINGS PER SHARE ("EPS")

        The computations of basic EPS are based on our weighted average shares outstanding. During the three and six months ended June 30, 2014, the weighted average shares outstanding were increased by 5,000 and 6,000 shares, respectively, to reflect the dilutive effect of stock options. Not included in the computation of diluted EPS were outstanding options to purchase 11,850 shares of Common Stock during the three and six months ended June 30, 2014, because the options' exercise prices were greater than the average market price of the shares.

        For purposes of calculating basic EPS for the three and six months ended June 30, 2013, the 65,028,571 shares of preferred stock issued in connection with the Merger have been assumed to have been converted into 91,039,999 shares of Common Stock. As of the Acquisition Date, a subsidiary of CIM Urban REIT had agreed to vote its 97.8% post-Merger ownership of CIM Commercial in favor of an increase in the number of authorized CIM Commercial shares of Common Stock to one billion, thereby satisfying the condition for the automatic conversion of these shares. The actual conversion of the shares of preferred stock to shares of Common Stock occurred on April 29, 2014.

11. DIVIDENDS DECLARED

        CIM Urban declared distributions to its partners of $16,100,000 prior to the Acquisition Date ($0.1685 per share of Common Stock, as converted). In addition, dividends of $59,286,000 ($27.975 per share of Common Stock) were paid to the PMC Commercial stockholders, which includes the $27.50 per share of Common Stock special dividend plus the $0.475 pro rata portion of PMC Commercial's regular quarterly cash dividend.

        On March 24, 2014, we declared a common share dividend of $0.05 per share of Common Stock and a preferred dividend of $0.0403 per share of preferred stock ($0.0285 per share of Common Stock as converted) which were paid on March 28, 2014.

        On April 28, 2014, we declared a dividend in the aggregate amount of $1,964,000 to the preferred stockholders ($0.0302 per share of preferred stock and $0.0215 per share of Common Stock, as converted) in connection with the conversion of shares of preferred stock to shares of Common Stock, which was paid on June 27, 2014.

        On June 12, 2014, we declared a common share dividend of $0.21875 per share of Common Stock which was paid on June 27, 2014.

22

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

        A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability. The hierarchy for inputs used in measuring fair value is as follows:

Level 1 Inputs—Quoted prices in active markets for identical assets or liabilities

Level 2 Inputs—Observable inputs other than quoted prices in active markets for identical assets and liabilities

Level 3 Inputs—Unobservable inputs

        In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

        The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on our consolidated balance sheets were as follows:

	June 30, 2014				December 31, 2013
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Level
	(in thousands)
Assets:
Loans Receivable Subject to Credit Risk	$	153,254	$	153,362	$	—	$	—		3
SBA 7(a) loans receivable, subject to secured borrowings		40,065		40,302		—		—		3
Liabilities:
Secured borrowings—government guaranteed loans		40,234		40,234		—		—		3
Unsecured revolving lines of credit and revolving facility		288,700		288,700		164,000		164,000		3
Term note		20,000		20,000		—		—		3
Junior subordinated notes		24,871		24,871		—		—		3
Mortgages payable		227,498		234,292		231,105		231,250		3

        Management's estimation of the fair value of our financial instruments is based on a Level 3 valuation in the fair value hierarchy established for disclosure of how a company values its financial instruments. In general, quoted market prices from active markets for the identical financial instrument (Level 1 inputs), if available, should be used to value a financial instrument. If quoted prices are not available for the identical financial instrument, then a determination should be made if Level 2 inputs are available. Level 2 inputs include quoted prices for similar financial instruments in active markets for identical or similar financial instruments in markets that are not active (i.e., markets in which there are few transactions for the financial instruments, the prices are not current, price quotations vary substantially, or in which little information is released publicly). There is limited reliable market information for our financial instruments and we utilize other methodologies for valuation purposes

23

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

12. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

since there are no Level 1 or Level 2 determinations available. Accordingly, Level 3 inputs are used to measure fair value.

        In general, estimates of fair value may differ from the carrying amounts of the financial assets and liabilities primarily as a result of the effects of discounting future cash flows. Considerable judgment is required to interpret market data and develop estimates of fair value. Accordingly, the estimates presented may not be indicative of the amounts we could realize in a current market exchange.

        Loans Receivable Subject to Credit Risk—Loans receivable were initially recorded at estimated fair value at the Acquisition Date. Loans receivable originated subsequent to the Acquisition Date are recorded at cost upon origination and adjusted by net loan origination fees and discounts. In order to determine the estimated fair value of our loans receivable, we use a present value technique for the anticipated future cash flows using certain assumptions including discount rates ranging from 8.50% to 15.00%, prepayment speeds of 15.00% and potential credit deterioration ranging from 0% to 1.50%. Significant increases (decreases) in any of these inputs in isolation would result in significantly lower (higher) fair value measurements. In the absence of a readily ascertainable market value, the estimated value of our loans receivable will differ from the values that would be placed on the portfolio if a ready market for the loans receivable existed.

        SBA 7(a) loans receivable, subject to secured borrowings—Represents the government guaranteed portion of loans which were sold with the proceeds received from the sale reflected as a liability on our consolidated balance sheet. There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal. In order to determine the estimated fair value of these loans receivable, we use a present value technique for the anticipated future cash flows taking into consideration the lack of credit risk using a prepayment rate of 15.00%.

        Junior subordinated notes—The fair value of the junior subordinated notes is estimated based on a current interest rates available for debt instruments with similar terms. Discounted cash flow analysis is generally used to estimate the fair value of our junior subordinated notes. The rate used was 3.83% at June 30, 2014.

        Secured borrowings—government guaranteed loans—The fair value of secured borrowings—government guaranteed loans approximates current market interest rates. Includes the unamortized deferred cash premiums collected on the sale of the government guaranteed portions of the related loans.

        Revolving credit facility, unsecured revolving lines of credit and term note—The carrying amount is a reasonable estimation of fair value as the interest rate on the revolving credit facility and revolving lines of credit are variable and are at a current market interest rate. In addition, the term note and revolving credit facility are short-term.

        Mortgage notes payable—The fair values of mortgage notes are estimated based on current interest rates available for debt instruments with similar terms. The fair value of our mortgages payable is sensitive to fluctuations in interest rates. Discounted cash flow analysis is generally used to estimate

24

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

12. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

the fair value of our mortgages payable, using rates ranging from 4.10% to 4.35% at June 30, 2014 and 4.85% to 5.00% at December 31, 2013.

13. RELATED-PARTY TRANSACTIONS

        CIM Urban REIT Management, LP (the "Management Company"), an affiliate of CIM Urban REIT, provides asset management services to CIM Urban. For these services, CIM Urban pays asset management fees to the Management Company, on a quarterly basis, in arrears. The fee is calculated as a percentage of the daily average gross fair value of our investments, as defined, as follows:

Daily Average Gross Fair Value of CIM Urban' Investments
				Quarterly Fee Percentage
From Greater of		To and Including
(in thousands)
$	—	$	500,000		0.2500	%
	500,000		1,000,000		0.2375	%
	1,000,000		1,500,000		0.2250	%
	1,500,000		4,000,000		0.2125	%
	4,000,000		20,000,000		0.1000	%

        The Management Company earned asset management fees of $5,798,000 and $5,431,000 for the three months ended June 30, 2014 and 2013, respectively and $11,479,000 and $10,840,000 for the six months ended June 30, 2014 and 2013, respectively. At June 30, 2014, and December 31, 2013, asset management fees of $5,898,000 and $5,426,000, respectively, were due to the Management Company.

        CIM Management, Inc. and certain of its affiliates (collectively, the "CIM Management Entities"), all affiliates of CIM Urban REIT, provide property management, leasing, and development services to CIM Urban. The CIM Management Entities earned property management fees, which are included in rental and other property operating expenses, totaling $1,272,000 and $1,215,000 for the three months ended June 30, 2014 and 2013, respectively and $2,531,000 and $2,362,000 for the six months ended June 30, 2014 and 2013, respectively. CIM Urban also reimbursed the CIM Management Entities $1,749,000 and $955,000 during the three months ended June 30, 2014 and 2013, respectively and $3,793,000 and $2,344,000 during the six months ended June 30, 2014 and 2013, respectively, for the cost of on-site personnel incurred on behalf of CIM Urban, which is included in rental and other property operating expenses. The CIM Management Entities earned leasing commissions of $839,000 and $11,000 for the three months ended June 30, 2014 and 2013, respectively and $1,351,000 and $297,000 for the six months ended June 30, 2014 and 2013, respectively, which were capitalized to deferred charges. In addition, the CIM Management Entities earned development management fees of $157,000 and $158,000 for the three months ended June 30, 2014 and 2013, respectively and $244,000 and $294,000 for the six months ended June 30, 2014 and 2013, respectively, which were capitalized to investments in real estate.

        At June 30, 2014 and December 31, 2013, fees payable and expense reimbursements due to the CIM Management Entities of $2,408,000 and $1,445,000, respectively, are included in due to related parties. Also included in due to related parties as of June 30, 2014, and December 31, 2013, is

25

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

13. RELATED-PARTY TRANSACTIONS (Continued)

$(12,000) and $(64,000), respectively, due to (from) the CIM Management Entities and related parties. We have also entered into contracts with third-party property management companies.

        Certain of these management companies also provide leasing and development management services, for which they are compensated in accordance with the agreements. Management fees incurred to third-party management companies related to the rental properties totaled $419,000 and $344,000 for the three months ended June 30, 2014 and 2013, respectively and $811,000 and $672,000 for the six months ended June 30, 2014 and 2013, respectively, which were included in rental and other property operating expenses.

        On the Acquisition Date, pursuant to the terms of the Merger Agreement, CIM Commercial and its lending subsidiaries entered into the Master Services Agreement (the "Master Services Agreement") with CIM Service Provider, LLC (the "Manager") pursuant to which the Manager agrees to provide or arrange for other service providers to provide management and administration services to CIM Commercial and its subsidiaries following the Merger. Pursuant to the Master Services Agreement, CIM Commercial pays a base service fee (the "Base Service Fee") to the Manager equal to $1,000,000 per year (subject to an annual escalation by a specified inflation factor beginning on January 1, 2015), payable quarterly in arrears. The Base Service Fee began to accrue on the Acquisition Date and was pro-rated based on the number of days during the first quarter in which the Master Services Agreement was in effect. For the three and six months ended June 30, 2014, the Manager earned a Base Service Fee of $250,000 and $306,000, respectively. In addition, pursuant to the terms of the Master Services Agreement, the Manager may receive compensation for performing certain services for CIM Commercial and its subsidiaries that are not covered under the Base Service Fee. During the six months ended June 30, 2014, such services performed by the Manager included accounting, tax, reporting, internal audit, legal, compliance, risk management, IT, human resources and corporate communications. The Manager's compensation is based on the salaries and benefits of the employees of the Manager and/or its affiliates who performed these services (allocated based on the percentage of time spent on the affairs of CIM Commercial and its subsidiaries). For the three and six months ended June 30, 2014, we expensed $290,000 for such services. At June 30, 2014, $596,000 was due to the Manager.

14. COMMITMENTS AND CONTINGENCIES

        Loan Commitments—Commitments to extend credit are agreements to lend to a customer provided the terms established in the contract are met. Our outstanding loan commitments and approvals to fund loans were $26,200,000 at June 30, 2014, the majority of which were for prime-based loans to be originated by our SBA 7(a) subsidiary, the government guaranteed portion of which is intended to be sold. Commitments generally have fixed expiration dates. Since some commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements.

        General—In connection with the ownership and operation of real estate properties, we have certain obligations for the payment of tenant improvement allowances and lease commissions in connection with new leases and renewals.

26

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

14. COMMITMENTS AND CONTINGENCIES (Continued)

        Employment Agreements—We have employment agreements with two of our executive officers. Under certain circumstances, as defined within the agreements, the agreements provide for (1) severance compensation or change in control payments to the executive officer in an amount equal to 2.99 times the average of the last three years annual compensation paid to the executive officer and (2) death and disability payments in an amount equal to two times and one time, respectively, the annual salary paid to the executive officer. In addition, to the extent the executive is employed by us on January 1, 2016 and such executive is not entitled to any disability, death or severance payments, the executive would receive restricted share awards as a retention bonus which would vest immediately upon grant. In aggregate, the executive officers would receive 105,000 share awards.

        Litigation—REIT Redux, L.P. et al v. CIM Commercial, et al. On October 9, 2013, a putative class action and derivative lawsuit was filed in the Dallas County Court at Law No. 5 in Dallas County, Texas against and purportedly on behalf of CIM Commercial. The plaintiffs alleged, among other things, that the CIM Commercial board breached its fiduciary duties by approving and recommending the merger to the shareholders, failing to maximize value for the shareholders, engaging in bad faith and self-dealing by preferring transactions that further enriched the trust managers at the expense of the shareholders and conspiring to deprive the shareholders of their voting power and prerogatives. The complaint alleged that CIM Urban REIT aided, abetted and induced those breaches of fiduciary duty.

        CIM Commercial and CIM Urban REIT entered into various agreements with the plaintiffs to settle their claims, which agreements were effective as of January 28, 2014 and were approved by the court on April 4, 2014 (the "Settlement Agreement"). Under the terms of the Settlement Agreement, the Manager entered into a trading plan (the "Trading Plan") designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934 to provide for the purchase of up to 550,000 shares of CIM Commercial Common Stock at prices up to $25.00 per share. The Trading Plan commenced on March 12, 2014 and will, in general, expire on the date that 550,000 shares of CIM Commercial Common Stock have been purchased or August 10, 2014, whichever is earlier. Pursuant to the Trading Plan, which expires on August 10, 2014, the Manager acquired approximately 248,000 shares of Common Stock through July 31, 2014. Additionally, CIM Commercial agreed to be responsible for providing and administering notice of the class action settlement to the members of the settlement class and pay for all reasonable costs incurred in providing such notice. As a result of the settlement, CIM Commercial agreed to payment of attorney's fees and expenses of plaintiffs' counsel of $772,000. In addition, pursuant to the terms of the Settlement Agreement, the Manager agreed to purchase up to 100,000 shares of CIM Commercial Common Stock owned by REIT Redux and its other "reporting persons", at a price of $25.00 per share, if requested by REIT Redux to do so at any time from July 10, 2014 until August 10, 2014. Pursuant to the request of REIT Redux, the Manager expects to complete the acquisition of the 100,000 shares in August 2014.

        We are not currently involved in any other material litigation nor, to our knowledge, is any material litigation currently threatened against us, other than routine litigation arising in the ordinary course of business, most of which is expected to be covered by liability insurance. In the normal course of business we are periodically party to certain legal actions and proceedings involving matters that are generally incidental to our business. In management's opinion, the resolution of these legal actions and

27

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

14. COMMITMENTS AND CONTINGENCIES (Continued)

proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

        SBA Related—If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced under the SBA 7(a) Program, the SBA may seek recovery of the principal loss related to the deficiency from us. With respect to the guaranteed portion of SBA loans that have been sold, the SBA will first honor its guarantee and then seek compensation from us in the event that a loss is deemed to be attributable to technical deficiencies. Based on historical experience, we do not expect that this contingency is probable to be asserted. However, if asserted, it could have a material adverse effect on our consolidated financial position, results of operations or cash flows.

        Environmental Matters—In connection with the ownership and operation of real estate properties, we may be potentially liable for costs and damages related to environmental matters, including asbestos-containing materials. We have not been notified by any governmental authority of any noncompliance, liability, or other claim in connection with any of the properties, and we are not aware of any other environmental condition with respect to any of the properties that management believes will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

        Rent Expense—The ground lease for a project provides for current annual rent of $437,000, payable quarterly, with increases on June 1, 2015, and every five years thereafter based on the greater of 15% or 50% of the increase in the Consumer Price Index during a five-year adjustment period. In addition, commencing on June 1, 2040 and June 1, 2065, the rent payable during the balance of the lease term shall be increased by an amount equal to 10% of the rent payable during the immediately preceding lease year. The lease term is through May 31, 2089. If the landlord decides to sell the leased property, we have the right of first refusal.

        Rent expense under this lease, which includes straight line rent and amortization of acquired below-market ground lease, was $438,000 for the three months ended June 30, 2014 and 2013, respectively and $876,000 for the six months ended June 30, 2014 and 2013, respectively. We record rent expense on a straight line basis. Straight line rent liability of $10,450,000 and $9,863,000 is included in other liabilities in the accompanying consolidated balance sheets as of June 30, 2014 and December 31, 2013, respectively.

        We lease office space in Dallas, Texas under a lease which expires in May 2018. For the three and six months ended June 30, 2014, rent expense under the lease was $49,000 and $65,000, respectively. Straight line rent liability of $33,000 is included in other liabilities in the accompanying consolidated balance sheet as of June 30, 2014.

28

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

14. COMMITMENTS AND CONTINGENCIES (Continued)

        Scheduled future noncancelable minimum lease payments at June 30, 2014 are as follows:

Years Ending December 31	(in thousands)
2014 (Six months ending December 31, 2014)	$	345
2015		616
2016		743
2017		749
2018		607
Thereafter		129,031
	$	132,091

15. FUTURE MINIMUM LEASE RENTALS

        Future minimum rental revenues under long-term operating leases at June 30, 2014, excluding tenant reimbursements of certain costs, are summarized as follows:

Years Ending December 31	Governmental Tenants		Other Tenants		Total
	(in thousands)
2014 (Six months ending December 31, 2014)	$	29,019	$	42,666	$	71,685
2015		46,321		85,064		131,385
2016		43,517		80,066		123,583
2017		40,356		75,065		115,421
2018		39,057		52,595		91,652
Thereafter		172,747		218,261		391,008
	$	371,017	$	553,717	$	924,734

16. CONCENTRATIONS

        Tenant Revenue Concentrations—Rental revenues from the U.S. General Services Administration and other government agencies (collectively, "Governmental Tenants"), which primarily occupy properties located in Washington, D.C., accounted for approximately 24.5%, and 27.4% of our rental and other property income for the three months ended June 30, 2014 and 2013, respectively and 25.1%, and 27.5% for the six months ended June 30, 2014 and 2013, respectively. At June 30, 2014, and December 31, 2013, $6,145,000 and $5,596,000, respectively, is due from Governmental Tenants (see Note 15).

        Geographical Concentrations of Investments in Real Estate—As of June 30, 2014, and December 31, 2013, we owned 20 and 19 office properties, respectively, five multifamily properties, and three hotel properties, located in four states and Washington, D.C.

29

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

16. CONCENTRATIONS (Continued)

        Our revenues concentration from properties for the periods ended June 30, 2014 and 2013, are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
California		60.2	%		57.3	%		60.3	%		57.3	%
North Carolina		6.1			6.6			5.6			6.5
Texas		7.7			8.2			7.7			8.1
New York		2.1			2.1			2.1			2.2
Washington, D.C.		23.9			25.8			24.3			25.9
		100.0	%		100.0	%		100.0	%		100.0	%

        Our real estate investments concentration from properties as of June 30, 2014, and December 31, 2013, are as follows:

	June 30, 2014			December 31, 2013
California		51.7	%		50.5	%
North Carolina		5.5			5.6
Texas		7.5			7.7
New York		3.6			3.7
Washington, D.C.		31.7			32.5
		100.0	%		100.0	%

        Concentration of loans receivable—Substantially all of our interest income is generated from loans collateralized by hospitality properties. At June 30, 2014, our loans receivable were 94.4% concentrated in the hospitality industry. In addition, at June 30, 2014, 12.7% of our loans were collateralized by properties in Texas and 10.5% of our loans were collateralized by properties in Virginia. No other state had a concentration of 10.0% or greater of our loans receivable at June 30, 2014.

17. SEGMENT DISCLOSURE

        In accordance with ASC Topic 280, Segment Reporting, our reportable segments consist of three types of commercial real estate properties, namely, office properties, hotel properties (which included an investment in a note receivable secured by a hotel property during the three and six months ended June 30, 2013) and multifamily properties, as well as a segment for our lending operations. Management internally evaluates the operating performance and financial results of the segments based on net operating income. We also have certain general and administrative level activities, including public company expenses, legal, accounting, tax preparation, that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in the notes to the audited consolidated financial statements of CIM Urban for the year ended December 31, 2013 included in our current report on Form 8-K/A filed on May 9, 2014.

30

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

17. SEGMENT DISCLOSURE (Continued)

        We evaluate the performance of our segments based on net operating income for our real estate segment, defined as: rental and other property income and tenant reimbursements less property and related expenses, and excludes other nonproperty income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, and transaction costs. For the lending segment, we define net operating income as interest income net of interest expense and expense for back-office operations and general overhead expenses such as administration and

31

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

17. SEGMENT DISCLOSURE (Continued)

accounting. The net operating income of our reportable segments for the three and six months ended June 30, 2014 and 2013, is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014(1)		2013
	(in thousands)
Office properties:
Revenues	$	45,181	$	44,137	$	88,455	$	87,597
Property expenses:
Operating		17,933		16,192		35,586		32,494
General and administrative		76		254		392		354
Total property expenses		18,009		16,446		35,978		32,848
Segment net operating income—office		27,172		27,691		52,477		54,749
Hotel properties:
Revenues		14,798		10,624		29,137		20,571
Property expenses:
Operating		9,923		7,125		19,769		13,653
General and administrative		36		83		73		162
Total property expenses		9,959		7,208		19,842		13,815
Segment net operating income—hotel		4,839		3,416		9,295		6,756
Multifamily properties:
Revenues		5,208		5,077		10,192		9,978
Property expenses:
Operating		2,583		1,915		4,670		3,806
General and administrative		54		35		79		42
Total property expenses		2,637		1,950		4,749		3,848
Segment net operating income—multifamily		2,571		3,127		5,443		6,130
Lending:
Revenues		6,271		—		7,797		—
Lending expenses:
Interest expense		635		—		897		—
General and administrative		1,253		—		1,658		—
Total lending expenses		1,888		—		2,555		—
Segment net operating income—lending		4,383		—		5,242		—
Total segment net operating income	$	38,965	$	34,234	$	72,457	$	67,635

(1)

The lending segment operations are included for the period from the Acquisition Date to June 30, 2014.

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

17. SEGMENT DISCLOSURE (Continued)

        A reconciliation of segment net operating income to net income for the three and six months ended June 30, 2014 and 2013, is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(in thousands)
Total segment net operating income	$	38,965		$	34,234		$	72,457		$	67,635
Interest		(4,304	)		(4,725	)		(8,259	)		(9,402	)
General and administrative		(2,191	)		(343	)		(2,587	)		(699	)
Asset management fees and other fees to related parties		(6,338	)		(5,431	)		(12,075	)		(10,840	)
Transaction costs		(32	)		(1,394	)		(500	)		(1,394	)
Depreciation and amortization		(17,286	)		(17,533	)		(33,915	)		(34,670	)
		8,814			4,808			15,121			10,630
Bargain purchase gain		—			—			4,918			—
Income before provision for income taxes		8,814			4,808			20,039			10,630
Provision for income taxes		(300	)		—			(308	)		—
Net income		8,514			4,808			19,731			10,630
Net income attributable to noncontrolling interests		(115	)		(113	)		(113	)		(109	)
Net income attributable to stockholders	$	8,399		$	4,695		$	19,618		$	10,521

        The condensed assets for each of the segments as of June 30, 2014 and December 31, 2013, along with capital expenditures and originations for the six months ended June 30, 2014 and 2013, are as follows:

	June 30, 2014		December 31, 2013
	(in thousands)
Condensed assets:
Office properties	$	1,518,743	$	1,481,757
Hotel properties		174,898		174,263
Multifamily properties		171,283		173,985
Lending		204,933		—
Non-segment assets		2,841		4,472
Total assets	$	2,072,698	$	1,834,477

33

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

AS OF JUNE 30, 2014, AND DECEMBER 31, 2013, AND
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (UNAUDITED)

17. SEGMENT DISCLOSURE (Continued)

	Six Months Ended June 30,
	2014		2013
	(in thousands)
Capital expenditures(1):
Office properties	$	11,428	$	6,830
Hotel properties		721		1,504
Multifamily properties		429		827
Total capital expenditures		12,578		9,161
Originations		25,191		—
Total capital expenditures and originations	$	37,769	$	9,161

(1)

Represents additions and improvements to real estate investments, excluding acquisitions.

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ITEM 2.
Management's Discussion and Analysis of Financial Condition
and Results of Operations

This Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. Such forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "believe," "anticipate," "seek," "plan," "estimate," or "continue," or the negative thereof or other variations or similar words or phrases. These statements include the plans and objectives of management for future operations, including, but not limited to, plans and objectives relating to future growth and availability of funds. The forward-looking statements included herein are based on current expectations and there can be no assurance that these expectations will be attained. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this Form 10-Q will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not undertake to update them to reflect changes that occur after the date they are made.

The following discussion of our financial condition at June 30, 2014 and results of operations for the three and six months ended June 30, 2014 and 2013 should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013 and the audited consolidated financial statements of CIM Urban for the year ended December 31, 2013, included in our current report on Form 8-K/A filed on May 9, 2014. For a more detailed description of the risks affecting our financial condition and results of operations, see "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2013.

All references to Common Stock and related per share data have been adjusted in this Form 10-Q to reflect the reverse stock split.

EXECUTIVE SUMMARY

The Merger

        On July 8, 2013, our predecessor, PMC Commercial, entered into the Merger Agreement with CIM Urban REIT and subsidiaries of the respective parties. The Merger Agreement provided for the business combination of CIM Urban REIT's wholly owned subsidiary, CIM Urban and PMC Commercial. Pursuant to the Merger Agreement, an affiliate of CIM Urban REIT received approximately 4.4 million shares of newly-issued PMC Commercial Common Stock and approximately 65.0 million shares of newly-issued PMC Commercial preferred stock. Following the Merger and subsequent increase in our authorized number of shares, each share of preferred stock was converted into 1.4 shares of PMC Commercial Common Stock, resulting in the issuance of approximately 95.4 million shares of Common Stock in the aggregate in connection with the Merger, representing approximately 97.8% of PMC Commercial's outstanding shares of Common Stock. All shares of PMC Commercial Common Stock that were outstanding immediately prior to the Merger continue to remain outstanding following the Merger. In addition, stockholders of record of PMC Commercial at the close of the business day prior to the Acquisition Date received a special cash dividend of $27.50 per share of Common Stock plus that pro-rata portion of PMC Commercial's regular quarterly cash dividend

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accrued through the Acquisition Date, each of which was paid March 25, 2014. The Merger was completed on March 11, 2014. Upon completion of the Merger, PMC Commercial became the parent of CIM Urban, previously the operating subsidiary of CIM Urban REIT. PMC Commercial reincorporated from Texas to Maryland on April 28, 2014 and, on the same day, changed its name from "PMC Commercial Trust" to "CIM Commercial Trust Corporation".

        The Merger was accounted for as a reverse acquisition under the acquisition method of accounting with CIM Urban considered to be the accounting acquirer based upon the terms of the Merger Agreement. Accordingly, the acquired assets and liabilities of PMC Commercial acquired on March 11, 2014 are included in the consolidated balance sheet as of June 30, 2014 and the results of its operations and cash flows are included in the consolidated statements of operations and comprehensive income and cash flows for the period from the Acquisition Date through June 30, 2014.

Business Overview

        Our principal business is to acquire and manage substantially stabilized real estate holdings located in areas that our manager has targeted for investments. These areas include traditional downtown areas and suburban main streets, which have high barriers to entry, high population density, improving demographic trends and a propensity for growth. We believe that the critical mass of redevelopment in such areas creates positive externalities, which enhance the value of substantially stabilized assets in the area. We believe that these assets will provide greater returns than similar assets in other markets, as a result of the improving demographics, public commitment, and significant private investment that characterize these areas.

        Our real estate business is managed by an affiliate of CIM Group, Inc. ("CIM"). CIM is an integrated, full-service real estate and infrastructure fund manager with multi-disciplinary expertise and in-house research, acquisition, investment, development, finance, leasing, and management capabilities. CIM is headquartered in Los Angeles and has offices in Oakland, California; Bethesda, Maryland; and New York, New York.

        We seek attractive risk-adjusted returns by exploiting the power of the CIM platform. Over time, we seek to expand our real estate holdings in communities targeted by CIM for investment, supported by CIM's broad real estate investment capabilities, as part of our plan to prudently grow market value and earnings.

Properties

        As of June 30, 2014, CIM Urban's investments consisted of (i) 20 office properties comprising approximately 5.5 million rentable square feet, (ii) five multifamily properties comprising 930 units, (iii) three hotels comprising 1,070 rooms, (iv) three parking garages, two of which have street level retail space, and (v) one development site.

Strategy

        CIM's community qualification process serves as the foundation for our investment strategy. CIM targets high barrier-to-entry markets and submarkets with high population density and applies rigorous research to qualify for potential investments. Since 1994, CIM has qualified 95 communities in high barrier-to-entry markets and has deployed capital in 47 of these communities. The qualification process generally takes between six months and five years and is a critical component of CIM's investment evaluation. CIM examines the characteristics of a community to determine whether the community justifies the extensive efforts CIM undertakes in reviewing and making potential investments in these qualified communities. Qualified communities generally fall into one of two categories: (1) transitional urban districts and (2) well-established, thriving urban areas (typically major central business districts ("CBDs")).

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        As a result of the in-depth research and analysis that CIM has performed to qualify transitional urban communities over the years, CIM has also gained extensive knowledge of adjoining major CBDs, in both primary and secondary cities such as New York, San Francisco, Dallas and Houston. While these areas are generally not underserved and in transition (but rather are well-established, thriving areas), due to the recent financial crisis and related distressed situations, CIM has been able to capitalize on pricing in these districts that has fallen below the values that CIM believes it will be able to obtain in the long term. CIM expects that, by applying its relative value investment discipline and local market knowledge, it will be able to provide us with opportunities to invest in high quality assets located in these major markets at what CIM believes to be discounts to intrinsic (i.e., expected long-term) value.

SBA 7(a) Lending

        We will continue to deploy a portion of our capital to our real estate lending platform through our wholly owned subsidiary (d/b/a PMC Commercial Trust) that originates and services loans under the U.S. Small Business Administration 7(a) Guaranteed Loan Program as well as through other lending programs which allow us to achieve attractive risk adjusted returns on its loans.

Funds from Operations ("FFO")

        We believe that FFO is a widely recognized and appropriate measure of the performance of a REIT and that it is frequently used by security analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO represents net income (loss), computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate, real estate depreciation and amortization (other than amortization of deferred financing costs), and after adjustments for noncontrolling interests. We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT").

        Like any metric, FFO should not be used as the only measure of our performance, because it excludes depreciation and amortization and captures neither the changes in the value of our real estate properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our operating results. Other REITs may not calculate FFO in accordance with NAREIT, accordingly, our FFO may not be comparable to those other REITs' FFO. Therefore, FFO should be considered only as a supplement to net income as a measure of our performance and should not be used as a supplement to or substitute measure for cash flow from operating activities computed in accordance with U.S. GAAP. FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends.

        The following table sets forth a reconciliation of net income to FFO computed in accordance with U.S. GAAP:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(in thousands)
Net income attributable to stockholders	$	8,399	$	4,695	$	19,618	$	10,521
Depreciation and amortization		17,286		17,533		33,915		34,670
Net income attributable to noncontrolling interests		115		113		113		109
FFO	$	25,800	$	22,341	$	53,646	$	45,300

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        Total FFO increased to $25,800,000, or by 15.5%, for the three months ended June 30, 2014, compared to $22,341,000 for the three months ended June 30, 2013. The increase was primarily attributable to $4,383,000 from the operations of the lending business for the period from April 1, 2014 to June 30, 2014, a decrease in transaction costs of $1,362,000, which mainly represented costs related to the Merger, offset by an increase of $1,848,000 in corporate general and administrative expenses due to operating in a public environment, and an increase of $300,000 in provision for income taxes.

        Total FFO increased to $53,646,000, or by 18.4%, for the six months ended June 30, 2014, compared to $45,300,000 for the six months ended June 30, 2013. The increase was primarily attributable to a non-cash bargain purchase gain of $4,918,000, an increase of $5,242,000 from the operations of the lending business for the period from the Acquisition Date to June 30, 2014, offset by an increase of $1,888,000 in corporate general and administrative expenses due to operating in a public environment.

Rental Rate Trends

        Office Rental Rates:    The following table sets forth the annualized rent per leased square foot across our office portfolio as of the specified periods:

	As of June 30,
	2014		2013
Annualized rent per leased square foot(1)	$	35.41	$	35.47

(1)

Represents gross monthly base rent under leases commenced as of the specified periods, multiplied by twelve. This amount reflects total cash rent before abatements. Total abatements for the twelve months ended June 30, 2014 and 2013 were approximately $12,000,000 and $11,800,000, respectively. Where applicable, annualized rent has been converted from triple net to gross by adding expense reimbursements to base rent, based on reimbursements for the applicable period, multiplied by twelve. Annualized rent for certain office properties includes rent attributable to retail and parking.

        Over the next four quarters, we expect to see expiring cash rents as set forth in the table below:

	For the Three Months Ended
	September 30, 2014		December 31, 2014		March 31, 2015		June 30, 2015
Expiring Cash Rents:
Expiring square feet(1)		241,680		213,694		120,748		123,972
Expiring rent per square foot(2)	$	40.76	$	47.78	$	39.19	$	35.32

(1)

All month-to-month tenants are included in the expiring leases in the first quarter listed.

(2)

Represents gross monthly base rent, as of June 30, 2014, under leases expiring during the periods above, multiplied by twelve. This amount reflects total cash rent before abatements. Where applicable, annualized rent has been converted from triple net to gross by adding expense reimbursements to base rent.

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        Multifamily Rates:    The following table sets forth the monthly rent per leased unit across our multifamily portfolio for the specified periods:

	As of June 30,
	2014		2013
Monthly rent per leased unit(1)	$	1,853	$	1,781

(1)

Represents gross monthly base rent under leases as of the specified period, divided by leased units. This amount reflects total cash rent before concessions.

        Occupancy Rates:    The following table sets forth the occupancy rates across our office and multifamily real estate portfolios as of the specified periods:

	As of June 30,
	2014			2013
Office portfolio		82.1	%		86.3	%
Multifamily portfolio		96.6	%		96.3	%

        Hotel Statistics:    The following table sets forth the occupancy, average daily rate ("ADR") and revenue per available room ("RevPAR") for the hotel portfolio for the specified periods:

	For the Six Months Ended June 30,
	2014			2013
Rental Rate Trends—Hotel Statistics(1)
Occupancy		82.3	%		77.4	%
ADR	$	122.51		$	134.36
RevPAR	$	100.83		$	104.03

(1)

The six months ended June 30, 2013 statistics exclude LAX Holiday Inn which CIM Urban took possession of through foreclosure in October 2013. Excluding LAX Holiday Inn from the hotel statistics for the six months ended June 30, 2014, the occupancy, ADR, and RevPAR would have been 77.7%, $144.68, and $112.37, respectively.

Secondary Market Loan Sales

        Our lending division sells loans pursuant to the SBA 7(a) Program. The SBA guaranteed portion of these loans are sold in legal sale transactions to either dealers in government guaranteed loans or institutional investors as the loans are fully funded. These government guaranteed portions of loans may be sold for (1) a cash premium and the minimum 1% SBA required servicing spread, (2) significant future servicing spread and no cash premium or (3) future servicing spread and a cash premium of 10% ("hybrid loan sales"). We are required to permanently treat certain of the proceeds received from these legally sold portions of loans (those loans sold solely for future servicing spread and those loans sold for a cash premium of 10% and future servicing spread) as secured borrowings (debt) for the life of the loan and 100% of the loan is included in our loans receivable.

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RESULTS OF OPERATIONS

Three Months Ended June 30, 2014 Compared to the Three Months Ended June 30, 2013

Overview

	Three Months Ended June 30,				Change
	2014		2013		$		%
	(dollars in thousands)
Total revenues	$	71,458	$	59,838	$	11,620		19.4	%
Total expenses	$	62,644	$	55,030	$	7,614		13.8	%
Net income	$	8,514	$	4,808	$	3,706		77.1	%

        Net income increased during the three months ended June 30, 2014 primarily due to the operations of the lending segment of $4,383,000, a decrease in transaction costs of $1,362,000, which mainly represented costs related to the Merger, offset by an increase of $1,848,000 in corporate general and administrative expenses due to operating in a public environment, and an increase of $300,000 in provision for income taxes.

        CIM Commercial operates in four segments: office properties, hotel, multifamily and lending. Set forth and described below are summary segment results for our four segments for the specified periods.

Summary Segment Results

	Three Months Ended June 30,				Change
	2014		2013		$		%
	(dollars in thousands)
Revenues:
Office properties	$	45,181	$	44,137	$	1,044		2.4	%
Hotel		14,798		10,624		4,174		39.3	%
Multifamily		5,208		5,077		131		2.6	%
Lending		6,271		—		6,271		—
Expenses:
Office properties		18,009		16,446		1,563		9.5	%
Hotel		9,959		7,208		2,751		38.2	%
Multifamily		2,637		1,950		687		35.2	%
Lending		1,888		—		1,888		—

Revenues

        Office Properties Revenue:    Revenues include rental revenues from office properties, expense reimbursements and lease termination income. Total office property revenues increased to $45,181,000, or 2.4%, for the second quarter of 2014 compared to $44,137,000 for the second quarter of 2013, primarily due to revenues related to the office property acquired in April 2014.

        Hotel Revenue:    Total hotel revenue increased to $14,798,000, or 39.3%, for the second quarter of 2014 compared to $10,624,000 for the second quarter of 2013. The increase is primarily due to the operations of the LAX Holiday Inn, which CIM Urban acquired through foreclosure in October 2013, being reflected as an operating hotel in the 2014 second quarter, versus a mortgage note receivable in the 2013 second quarter. Additionally, our hotel property in Sacramento, California, experienced RevPar growth in the 2014 second quarter compared to the 2013 second quarter due to increased rates.

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        Multifamily Revenue:    Total multifamily revenue increased to $5,208,000, or 2.6%, for the second quarter of 2014 compared to $5,077,000 for the second quarter of 2013. The increase is primarily due to increased rates.

        Lending Revenue:    Represents revenues from the lending operations of CIM Commercial and our lending subsidiaries including interest income on loans and other loan related fee income. Included in the three months ended June 30, 2014 is interest income of $4,748,000, including accretion of $1,789,000 related to acquisition discounts, and $1,151,000 of premium income related to the sale of the government guaranteed portions of our fully funded SBA 7(a) loans.

Expenses

        Office Properties Expenses:    Total expenses increased to $18,009,000, or 9.5%, for the second quarter of 2014 compared to $16,446,000 for the second quarter of 2013. The increase is primarily due to expenses related to the office property acquired in April 2014, an increase in electricity expense at the District of Columbia properties, and an increase in real estate taxes at the California properties. We expect there will be increases in real estate taxes compared to 2013 at the California properties for the remainder of the year.

        Hotel Expenses:    Total hotel expenses increased to $9,959,000, or 38.2%, for the second quarter of 2014 compared to $7,208,000 for the second quarter of 2013. The increase is primarily due to the LAX Holiday Inn, which CIM Urban acquired through foreclosure in October 2013, being reflected as an operating hotel in the 2014 second quarter, versus a mortgage note receivable in the 2013 second quarter.

        Multifamily Expenses:    Total multifamily expenses increased to $2,637,000, or 35.2%, for the second quarter of 2014 compared to $1,950,000 for the second quarter of 2013. The increase is primarily due to an increase in real estate taxes in the 2014 second quarter compared to the 2013 second quarter.

        Lending Expenses:    Represents expenses from the lending operation of CIM Commercial and our lending subsidiaries including general and administrative expenses related to the operation of the lending business. Lending expenses primarily represent salaries and related benefits expense of $1,018,000 and interest expense of $635,000.

        Interest Expense:    Interest expense that has not been allocated to segments of $4,304,000 for the second quarter of 2014 represents a $421,000 decrease from $4,725,000 for the second quarter of 2013. Increased interest expense from incremental lines of credit borrowings in the 2014 second quarter was offset by lower interest expense from amortizing fixed-rate mortgages as a result of the repayment of approximately $75,909,000 in fixed rate mortgages in September 2013. The reduction in interest expense was primarily due to the lower interest rate on our borrowings under our lines of credit outstanding during the second quarter of 2014 versus the interest rates on the fixed rate mortgages that were outstanding during the second quarter of 2013 that were repaid in September 2013.

        General and Administrative:    General and administrative expenses that have not been allocated to segments increased to $2,191,000 for the second quarter of 2014 compared to $343,000 for the comparable 2013 period. The increase is primarily due to public company expenses.

        Transaction Costs:    Transaction costs totaling $32,000 for the second quarter of 2014 represent a $1,362,000 decrease from $1,394,000 for the second quarter of 2013. The costs incurred in the second quarter of 2014 are related to the acquisition of the office property in April 2014, while the costs incurred in the second quarter of 2013 are associated with the Merger and are primarily comprised of due diligence costs, reimbursement of PMC Commercial's acquisition-related costs, legal and accounting expenses.

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        Asset Management Fees and Other Fees to Related Parties:    Asset management fees totaled $5,798,000 for the second quarter of 2014 compared to $5,431,000 for the second quarter of 2013. Management fees are calculated based on a percentage of the gross fair value of CIM Urban's investments, which are appraised in the fourth quarter of each year. The higher fees reflect a net increase in the fair value of the real estate investments based on the December 31, 2013 appraised values, as well as incremental capital expenditures and acquisitions in the first six months of 2014. In addition, pursuant to the Master Services Agreement entered into on the Acquisition Date, CIM Commercial will pay a Base Service Fee equal to $1,000,000 per year (subject to annual escalation by a specified inflation factor beginning on January 1, 2015) to the Manager, a related party. Fees to the related party totaled $250,000 for the second quarter of 2014 compared to $0 for the second quarter of 2013. In addition, pursuant to the terms of the Master Services Agreement, the Manager may receive compensation for performing certain services for CIM Commercial and its subsidiaries that are not covered under the Base Service Fee. For the second quarter of 2014, we expensed $290,000 for such services.

        Depreciation and Amortization:    Depreciation and amortization expense decreased to $17,286,000, or 1.4%, for the second quarter of 2014, compared to $17,533,000 for the second quarter of 2013. The decrease in depreciation and amortization expense compared to the second quarter of 2013 is primarily due to certain assets that became fully depreciated, partially offset by an increase in depreciation expense associated with additional capital expenditures and the acquisition of the office property in April 2014.

Six Months Ended June 30, 2014 Compared to the Six Months Ended June 30, 2013

Overview

	Six Months Ended June 30,				Change
	2014		2013		$		%
	(dollars in thousands)
Total revenues	$	135,581	$	118,146	$	17,435		14.8	%
Total expenses	$	120,460	$	107,516	$	12,944		12.0	%
Bargain purchase gain	$	4,918	$	—	$	4,918		—
Net income	$	19,731	$	10,630	$	9,101		85.6	%

        Net income increased during the six months ended June 30, 2014 primarily due to the recognition of the bargain purchase gain of $4,918,000, an increase of $5,242,000 from the operations of the lending business for the period from Acquisition Date to June 30, 2014, offset by an increase of $1,888,000 in corporate general and administrative expenses due to operating in a public environment. The bargain purchase gain was recorded as of the Acquisition Date in the amount equal to the excess of the fair value of the identifiable net assets acquired over the purchase price (consideration).

        Set forth and described below are summary segment results for our four segments for the specified periods.

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Summary Segment Results

	Six Months Ended June 30,				Change
	2014		2013		$		%
	(dollars in thousands)
Revenues:
Office properties	$	88,455	$	87,597	$	858		1.0	%
Hotel		29,137		20,571		8,566		41.6	%
Multifamily		10,192		9,978		214		2.1	%
Lending(1)		7,797		—		7,797		—
Expenses:
Office properties		35,978		32,848		3,130		9.5	%
Hotel		19,842		13,815		6,027		43.6	%
Multifamily		4,749		3,848		901		23.4	%
Lending(1)		2,555		—		2,555		—

(1)

Our lending operations are reflected beginning on Acquisition Date to June 30, 2014.

Revenues

        Office Properties Revenue:    Revenues include rental revenues from office properties, expense reimbursements and lease termination income. Total office property revenues increased to $88,455,000, or 1.0%, for the first six months of 2014 compared to $87,597,000 for the first six months of 2013, primarily due to revenues related to the office property acquired in April 2014.

        Hotel Revenue:    Total hotel revenue increased to $29,137,000, or 41.6%, for the first six months of 2014 compared to $20,571,000 for the first six months of 2013. The increase is primarily due to the operations of the LAX Holiday Inn, which CIM Urban acquired through foreclosure in October 2013, being reflected as an operating hotel in the six months ended June 30, 2014, versus a mortgage note receivable in the six months ended June 30, 2013. Additionally, our hotel property in Sacramento, California, experienced RevPar growth in the six months ended June 30, 2014 compared to the six months ended June 30, 2013.

        Multifamily Revenue:    Total multifamily revenue increased to $10,192,000, or 2.1%, for the first six months of 2014 compared to $9,978,000 for the first six months of 2013. The increase is primarily due to increased rates.

        Lending Revenue:    Represents revenues from the lending operations of CIM Commercial and our lending subsidiaries including interest income on loans and other loan related fee income. The lending operations revenue is only reflected beginning on the Acquisition Date through June 30, 2014. Included in the six months ended June 30, 2014 is interest income of $6,270,000, including accretion of $2,135,000 related to acquisition discounts, and $1,151,000 of premium income related to the sale of the government guaranteed portions of our fully funded SBA 7(a) loans.

Expenses

        Office Properties Expenses:    Total expenses increased to $35,978,000, or 9.5%, for the first six months of 2014 compared to $32,848,000 for the first six months of 2013. The increase is primarily due to an increase in electricity expense at the District of Columbia properties, and an increase in real estate taxes at the California properties. We expect there will be increases in real estate taxes compared to 2013 at the California properties for the remainder of the year.

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        Hotel Expenses:    Total hotel expenses increased to $19,842,000, or 43.6%, for the first six months of 2014 compared to $13,815,000 for the first six months of 2013. The increase is primarily due to the LAX Holiday Inn, which CIM Urban acquired through foreclosure in October 2013, being reflected as an operating hotel in the six months ended June 30, 2014, versus a mortgage note receivable in the six months ended June 30, 2013. Additionally, our hotel property in Sacramento, California had increased variable costs associated with higher occupancy for the first six months of 2014 compared to the first six months of 2013.

        Multifamily Expenses:    Total multifamily expenses increased to $4,749,000, or 23.4%, for the first six months of 2014 compared to $3,848,000 for the first six months of 2013. The increase is primarily due to an increase in real estate taxes in the first six months of 2014 compared to the first six months of 2013.

        Lending Expenses:    Represents expenses from the lending operation of CIM Commercial and our lending subsidiaries including general and administrative expenses related to the operation of the lending business. The lending operations expenses are only reflected beginning on the Acquisition Date through June 30, 2014. Lending expenses primarily represent salaries and related benefits expense of $1,325,000 and interest expense of $897,000.

        Interest Expense:    Interest expense that has not been allocated to segments of $8,259,000 for the first six months of 2014 represents a $1,143,000 decrease from $9,402,000 for the first six months of 2013. Increased interest expense from incremental lines of credit borrowings in six months of 2014 was offset by lower interest expense from amortizing fixed-rate mortgages as a result of the repayment of approximately $75,909,000 in fixed rate mortgages in September 2013. The reduction in interest expense was primarily due to the lower interest rate on our borrowings under our lines of credit outstanding during the first six months of 2014 versus the interest rates on the fixed rate mortgages that were outstanding during the first six months of 2013 that were repaid in September 2013.

        General and Administrative:    General and administrative expenses that have not been allocated to segments increased to $2,587,000 for the first six months of 2014 compared to $699,000 for the comparable 2013 period. The increase is primarily due to public company expenses incurred beginning on the Acquisition Date.

        Transaction Costs:    Transaction costs totaling $500,000 for the first six months of 2014 represent a $894,000 decrease from $1,394,000 for the first six months of 2013. These costs are mainly associated with the Merger and are primarily comprised of due diligence costs, reimbursement of PMC Commercial's acquisition-related costs, legal and accounting expenses. We also incurred $32,000 in the first six months of 2014 related to the acquisition of the office property in April 2014.

        Asset Management Fees and Other Fees to Related Parties:    Asset management fees totaled $11,479,000 for the first six months of 2014 compared to $10,840,000 for the first six months of 2013. Management fees are calculated based on a percentage of the gross fair value of CIM Urban's investments, which are appraised in the fourth quarter of each year. The higher fees reflect a net increase in the fair value of the real estate investments based on the December 31, 2013 appraised values, as well as incremental capital expenditures and acquisitions in the first six months of 2014. In addition, pursuant to the Master Services Agreement entered into on the Acquisition Date, CIM Commercial will pay a Base Service Fee equal to $1,000,000 per year (subject to annual escalation by a specified inflation factor beginning on January 1, 2015) to the Manager, a related party. Fees to the related party totaled $306,000 for the first six months of 2014 compared to $0 for the first six months of 2013. In addition, pursuant to the terms of the Master Services Agreement, the Manager may receive compensation for performing certain services for CIM Commercial and its subsidiaries that are not covered under the Base Service Fee. For the first six months of 2014, fees for such services were $290,000.

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        Depreciation and Amortization:    Depreciation and amortization expense decreased to $33,915,000, or 2.2%, for the first six months of 2014, compared to $34,670,000 for the first six months of 2013. The decrease in depreciation and amortization expense compared to the first six months of 2013 is primarily due to certain assets that became fully depreciated, partially offset by an increase in depreciation expense associated with additional capital expenditures and the acquisition of the office property in April 2014.

LIQUIDITY AND CAPITAL RESOURCES

Sources and Uses of Funds

Credit Facilities

        At June 30, 2014, CIM Commercial had a revolving credit facility with borrowing up to $25,000,000 which matures on June 30, 2015. We are charged interest on the balance outstanding under the revolving credit facility at our election of either the prime rate of the lender less 50 basis points or 30-day LIBOR plus 2%. In addition, we are charged an unused fee equal to 25 basis points computed based on our daily available balance. At June 30, 2014, $700,000 was outstanding under this facility. As of July 31, 2014, $0 was outstanding under this facility, and $25,000,000 was available for future borrowings.

        Our term note in the principal amount of $30,000,000 which matures in September 2014 has an interest rate of 2.74%. During the second quarter of 2014, $10,000,000 of this term note was repaid. Upon repayment in full of this term note, CIM Commercial's $25,000,000 revolving credit facility will be increased to $40,000,000. The CIM Commercial revolving credit facility requires us to meet certain covenants including an asset coverage test (eligible loans receivable to balances outstanding under the facility and term note) of 3.00 times.

        In February 2012, CIM Urban entered into an unsecured revolving line of credit with a bank syndicate, which allows for maximum borrowings of $100,000,000. Borrowings under the line of credit are limited by certain borrowing base calculations. Outstanding advances under the line of credit bore interest at the base rate, as defined, plus 0.75% to 1.50% or LIBOR plus 1.75% to 2.50%, depending on the maximum consolidated leverage ratio, as defined, until August 2013. In August 2013, the unsecured revolving line was amended, and outstanding advances under the line bear interest at the base rate, as defined, plus 0.25% to 0.85% or LIBOR plus 1.25% to 1.85%, depending on the maximum consolidated leverage ratio, as defined. The line of credit is also subject to an unused commitment fee of 0.25% or 0.35% depending on the amount of aggregate unused commitments. The line of credit matures in February 2016, with a one-year extension option under certain conditions. As of July 31, 2014, June 30, 2014, and December 31, 2013, $100,000,000, was outstanding under the line of credit, and $0, was available for future borrowings.

        In August 2013, CIM Urban entered into another unsecured revolving credit facility with a syndicate of banks. The credit facility provides an additional $125,000,000 of borrowing capacity that was increased to $150,000,000. CIM Urban amended the facility in April 2014 to further increase the maximum aggregate borrowing capacity under the revolving credit facility to $200,000,000. Borrowings under the revolving credit facility are limited by certain borrowing base calculations. Outstanding advances under the revolving credit facility bear interest at the base rate, as defined, plus 0.25% to 0.85% or LIBOR plus 1.25% to 1.85%, depending on the maximum consolidated leverage ratio, as defined. The revolving credit facility is also subject to an unused commitment fee of 0.25% or 0.35% depending on the amount of aggregate unused commitments. The revolving credit facility originally matured in February 2014, and was recently extended to October 10, 2014. As of July 31, 2014, June 30, 2014, and December 31, 2013, $188,000,000, $188,000,000, and $64,000,000, respectively, was outstanding under the revolving credit facility, and $12,000,000, $12,000,000 and $61,000,000, respectively, was available for future borrowings.

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        At June 30, 2014 and December 31, 2013, CIM Commercial and CIM Urban were either in compliance with all of their respective financial covenants or had obtained waivers from the relevant lenders with respect to such compliance.

        Our primary liquidity needs for the next twelve months (1) include (i) funds to pay for capital expenditures, (ii) funds to originate new loans, (iii) funds to pay debts and other obligations as they become due and (iv) funds to pay dividends and (2) may include funds for acquisitions, development or repositioning of properties. While we expect to meet some of these liquidity needs through cash on hand, cash provided by operations, borrowings under our existing credit facilities and principal collections on loans receivable, we do not expect that we will have sufficient funds to cover all of these liquidity needs. We expect to cover any additional liquidity needs through one or more credit facilities and/or debt issuances. We are currently in negotiations with two banks, as joint lead arrangers, to finalize an unsecured term loan and a revolving credit facility of $550,000,000, with an accordion feature which would increase the maximum aggregate facilities to $850,000,000. We intend to use the proceeds of these facilities to repay all of our outstanding term and revolving credit facilities. We expect to close the new term loan and revolving credit facilities by the end of the third quarter of 2014. Completion and the costs of any future debt transactions (including the new term and revolving credit facilities) will depend primarily upon market conditions. It is our intention to conduct business activities in a manner which will allow reasonable access to capital for future investment activities. However, there can be no assurance that our negotiation of the new term loan and revolving credit facilities will be successful or that the closing of these new facilities will occur in the time frame described above. If the new term loan and revolving credit facilities fail to close for any reason or closing is delayed substantially beyond the time frame described above, there can be no assurances we will be able to successfully negotiate an extension of our existing credit facilities or any increased maximum availability. In addition, there can be no assurances that we will be able to enter into any other debt transactions successfully in the future. However, we believe other financing sources would be available to us. If any of the contingencies described in the preceding sentences occur, our liquidity could be adversely affected.

        Our long-term liquidity needs will consist primarily of funds necessary to acquire properties and to pay for development or repositioning of properties, non-recurring capital expenditures, loan originations and refinancing of indebtedness. We may not have sufficient funds on hand or may not be able to obtain additional financing to cover all of these long-term cash requirements. The nature of our business, and the requirements imposed by REIT rules that we distribute a substantial majority of our REIT taxable income on an annual basis in the form of dividends, may cause us to have substantial liquidity needs over the long-term. We will seek to satisfy our long term liquidity needs through cash flows from operations, long-term indebtedness, equity issuances and/or, to the extent appropriate, property dispositions. These sources of funding may not be available on attractive terms or at all. If we cannot obtain additional funding for our long-term liquidity needs, our investments may generate lower cash flows or decline in value, or both, which may cause us to reduce our dividend or sell assets at a time when we would not otherwise do so.

Available Borrowings, Cash Balances and Capital Resources

        We have typically financed our capital needs through investor equity commitments, long-term secured mortgages and a short-term lines of credit. As of June 30, 2014 and December 31, 2013, we had total indebtedness of $601,303,000 and $395,105,000, respectively. Included in total indebtedness is $288,700,000 and $164,000,000 of borrowings under lines of credit with total capacity of $325,000,000 and $225,000,000 at June 30, 2014 and December 31, 2013, respectively.

Cash Flow Analysis

        As a REIT, our cash flows from operations are typically used to fund our dividends.

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        Our cash and cash equivalents totaled $20,030,000 and $16,796,000 at June 30, 2014 and December 31, 2013, respectively. Our cash flows from operating activities are primarily dependent upon the occupancy level of our real estate assets, the rental rates achieved through our leases, and the collectability of rent and recoveries from our tenants. Our cash flows from operating activities are also impacted by fluctuations in operating expenses and other general and administrative costs. Net cash provided by operating activities totaled $36,670,000 for the first six months of 2014 compared to $32,249,000 for the first six months of 2013. The increase is mainly due to additional net income from the acquisition of an office property in April 2014, and due to the operations of the LAX Holiday Inn, which CIM Urban acquired through foreclosure in October 2013, being reflected as an operating hotel in the first six months of 2014, versus a mortgage note receivable in the first six months of 2013. In addition, our cash flows from operating activities include cash used in operating activities from the lending division of $16,753,000 for loans funded that were held for sale, net of $12,999,000 proceeds from the sale of guaranteed loans. Our loans funded held for sale will fluctuate based on management's decision to sell loans for solely cash premiums, as a hybrid loan sale or for solely servicing spread.

        Our cash flows from investing activities are primarily related to property acquisitions and sales, expenditures for development and redevelopment projects, capital expenditures and the cash flows from lending activities. Net cash used in investing activities was $38,120,000 in the first six months of 2014 compared to $10,987,000 in the first six months of 2013 primarily due to an increase in the use of funds for the acquisition of the office property acquired in April 2014, an increase in loans funded, and an increase in capital expenditures, offset by principal collected on loans, and by cash and cash equivalents acquired in the Merger of $3,185,000.

        Our cash flows from financing activities are generally impacted by borrowings and capital activities, net of dividends and distributions. Net cash provided by (used in) financing activities increased to $4,684,000 in the first six months of 2014, from ($19,425,000) in the first six months of 2013. We used funds from financing activities during the six months ended June 30, 2014 primarily to pay distributions of $101,642,000 in the aggregate ($42,356,000 to partners and stockholders and $59,286,000 for the acquisition of PMC Commercial) compared to partner distributions of $41,035,000 during the first six months of 2013. We had net borrowings of $106,713,000 during the first six months of 2014 compared to $21,736,000 during the first six months of 2013.

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SUMMARIZED CONTRACTUAL OBLIGATIONS, COMMITMENTS AND CONTINGENCIES

        The following summarizes our contractual obligations at June 30, 2014:

	Payments Due by Period
Contractual Obligations	Total		2014		2015 - 2016		2017 - 2018		Thereafter
	(in thousands)
Debt:
Mortgages Payable	$	225,125	$	3,278	$	81,409	$	28,942	$	111,496
Other Principal(1)		335,770		208,000		100,700		—		27,070
Secured Borrowings(2)		37,210		575		2,400		2,572		31,663
Interest:
Debt(3)		102,987		8,901		25,134		18,174		50,778
Other Contractual Obligations:
Borrower advances		5,137		5,137		—		—		—
Executive employment agreements(4)		1,257		419		838		—		—
Operating leases(5)		132,091		345		1,359		1,356		129,031
Total contractual cash obligations	$	839,577	$	226,655	$	211,840	$	51,044	$	350,038

(1)

Represents the revolving credit facility, term note, junior subordinated notes, and unsecured revolving lines of credit.

(2)

Principal payments are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled principal payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and/or loan liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans.

(3)

Excludes premiums and discounts. For the mortgages payable, the interest expense is calculated based on the current effective interest rate on the related debt. For our revolving credit facilities, assumes current balance outstanding through maturity date, and is calculated using the variable rate in effect at June 30, 2014.

(4)

Represents minimum payments required under executive employment agreements.

(5)

Represents future minimum lease payments under our operating leases for office space, and under the ground lease for one of the projects.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

        Our accounting policies are described in Note 3 to the consolidated financial statements included in this Form 10-Q.

DIVIDENDS

        Our stockholders are entitled to receive dividends when and as declared by the Board of Directors. In determining our dividend policy, the Board of Directors considers many factors including, but not limited to, expectations for future earnings, REIT taxable income (loss) and maintenance of REIT status, the economic environment and portfolio performance. Consequently, the dividend rate on a quarterly basis does not necessarily correlate directly to any individual factor. There can be no assurance that the future dividends declared by our Board of Directors will not differ materially from historical dividend levels.

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        CIM Urban REIT declared distributions to its partners of $16,100,000 prior to the Acquisition Date ($0.1685 per share of Common Stock, as converted). In addition, dividends of $59,286,000 ($27.975 per share of Common Stock) were paid to the PMC Commercial stockholders, which includes the $27.50 per share of Common Stock special dividend plus the $0.475 pro rata portion of PMC Commercial's regular quarterly cash dividend.

        On March 24, 2014, we declared a common share dividend of $0.05 per share of Common Stock and a preferred dividend of $0.0403 per share of preferred stock ($0.0285 per share of Common Stock, as converted), all of which were paid on March 28, 2014.

        On April 28, 2014, we declared a dividend in the aggregate amount of $1,964,000 to the preferred stockholders ($0.0302 per share of preferred stock and $0.0215 per share of Common Stock as converted) in connection with the conversion of shares of preferred stock to shares of Common Stock, which was paid on June 27, 2014.

        On June 12, 2014, we declared a common share dividend of $0.21875 per share of Common Stock which was paid on June 27, 2014.

ITEM 3.
Quantitative and Qualitative Disclosures About Market Risk

        The fair value of CIM Commercial's mortgages payable is sensitive to fluctuations in interest rates. Discounted cash flow analysis is generally used to estimate the fair value of CIM Commercial's mortgages payable, using rates ranging from 4.10% to 4.35% at June 30, 2014 and 4.85% to 5.00% at December 31, 2013. Mortgages payable with book values of $227,498,000 and $231,105,000 as of June 30, 2014 and December 31, 2013, respectively, have a fair value of approximately $234,292,000 and $231,250,000, respectively.

        CIM Commercial's future income, cash flows and fair values relevant to financial instruments are dependent upon prevalent market interest rates. Market risk refers to the risk of loss from adverse changes in market prices and interest rates. CIM Commercial is exposed to market risk in the form of changes in interest rates and the potential impact such changes may have on the cash flows from its floating rate debt or the fair values of its fixed rate debt. Given the long term nature of its real estate investments, CIM Commercial generally finances its properties with long term, fixed rate mortgage loans. At June 30, 2014 and December 31, 2013 (excluding premiums and discounts on assumed mortgages), $225,125,000 (or 37.7%) and $228,319,000 (or 58.2%) of CIM Commercial's debt was fixed rate mortgage loans, $20,000,000 (or 3.3%) and $0 term note was fixed rate, and $352,980,000 (or 59.0%) and $164,000,000 (or 41.8%) was floating rate borrowings. Based on the level of floating rate debt outstanding at June 30, 2014 and December 31, 2013, a 12.5 basis point change in LIBOR would result in an annual impact to CIM Commercial's earnings of approximately $441,000 and $205,000, respectively. CIM Commercial calculates interest rate sensitivity by multiplying the amount of floating rate debt by the respective change in rate. The sensitivity analysis does not take into consideration possible changes in the balances or fair value of CIM Commercial's floating rate debt.

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ITEM 4.
Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

        As of the end of the period covered by this report, we carried out an evaluation under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")). Based upon this evaluation, as of June 30, 2014, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act, are recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

CHANGES IN INTERNAL CONTROL IN FINANCIAL REPORTING

        On March 11, 2014, we consummated the Merger as described under "Executive Summary—The Merger" in Item 2 above. As a result of the Merger, our management is analyzing, evaluating and, where necessary, implementing changes in controls and procedures. Due to the significance of the Merger and the limited period of time since the Acquisition Date, we did not have sufficient resources available to assess any change in our internal controls over financial reporting with respect to CIM Urban for the quarter ended June 30, 2014. Therefore, we excluded CIM Urban from our evaluation of change in internal controls over financial reporting contained in this quarterly report. However, management considers the operations of CIM Urban material to our consolidated financial position, results of operations and cash flows and believes that the disclosure controls and procedures of CIM Urban will have a material effect on internal controls over financial reporting. CIM Urban will be included in the overall assessment of, and report on, internal controls over financial reporting as of December 31, 2014.

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PART II
Other Information

ITEM 1.    Legal Proceedings

        The information contained in Item 1.01 of our Current Report on Form 8-K filed on January 29, 2014 is incorporated herein by reference.

        While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

ITEM 1A.    Risk Factors

        There have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013.

ITEM 2.    Unregistered Sales of Equity Securities and Use of Proceeds

        None.

ITEM 3.    Defaults upon Senior Securities

        None.

ITEM 4.    Mine Safety Disclosures

        Not applicable.

ITEM 5.    Other Information

        None.

ITEM 6.    Exhibits

A.

Exhibits

3.1		Articles of Amendment and Restatement of PMC Commercial Merger Sub, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed with the SEC on May 2, 2014).
3.1(a	)	Articles of Amendment (Name Change) (incorporated by reference to Exhibit 3.4 to the Registrant's Current Report on Form 8-K filed with the SEC on May 2, 2014).
3.1(b	)	Articles of Amendment (Reverse Stock Split) (incorporated by reference to Exhibit 3.5 to the Registrant's Current Report on Form 8-K filed with the SEC on May 2, 2014).
3.1(c	)	Articles of Amendment (Par Value Decrease) (incorporated by reference to Exhibit 3.6 to the Registrant's Current Report on Form 8-K filed with the SEC on May 2, 2014).
3.2		Bylaws (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K filed with the SEC on May 2, 2014).
10.1		Credit Agreement, dated as of August 28, 2013, among CIM Urban Partners, L.P., CIM Urban REIT, LLC, Bank of America, N.A., as Administrative Agent, JPMorgan Chase Bank, N.A. as Syndication Agent and the other Lenders party thereto (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).

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10.2	Consent and First Amendment to Credit Agreement, dated as of October 16, 2013, among CIM Urban Partners, L.P., CIM Urban REIT, LLC, each Lender party thereto and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
10.3	Second Amendment to Credit Agreement, dated as of April 7, 2014, among CIM Urban Partners, L.P., each Lender party thereto and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
10.4	Credit Agreement, dated as of February 6, 2012, among CIM Urban Partners, L.P., CIM Urban REIT, LLC, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, JPMorgan Chase Bank, N.A., as Syndication Agent and the other Lenders party thereto (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
10.5	First Amendment to Credit Agreement, dated as of August 28, 2013, among CIM Urban Partners, L.P., CIM Urban REIT, LLC, each Lender party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer (incorporated by reference to Exhibit 10.5 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
10.6	Consent and Second Amendment to Credit Agreement, dated as of October 16, 2013, among CIM Urban Partners, L.P., CIM Urban REIT, LLC, each Lender party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer (incorporated by reference to Exhibit 10.6 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
10.7	Third Amendment to Credit Agreement, dated as of April 7, 2014, among CIM Urban Partners, L.P., each Lender party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer (incorporated by reference to Exhibit 10.7 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
*10.8	Service Agreement, dated as of August 7, 2014, by and among CIM Commercial Trust Corporation and CIM Service Provider, LLC, under the Master Services Agreement dated March 11, 2014, by and among PMC Commercial Trust, certain of its subsidiaries, and CIM Service Provider, LLC.
*10.9	Form of Indemnification Agreement for directors and officers of CIM Commercial Trust Corporation
10.10	Third Amendment to the Credit Agreement, dated as of July 19, 2014, among CIM Urban Partners, L.P., each Lender party thereto and Bank of America, N.A., as Administrative Agent, (Incorporate by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on August 1, 2014).
*31.1	Section 302 Officer Certification—President
*31.2	Section 302 Officer Certification—Chief Financial Officer
**32.1	Section 906 Officer Certification—President
**32.2	Section 906 Officer Certification—Chief Financial Officer
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

*

Filed herewith.

**

Furnished herewith

52

Signatures

        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CIM Commercial Trust Corporation
Date: 08/11/14	/s/ JAN F. SALIT Jan F. Salit President (Principal Executive Officer)
Date: 08/11/14	/s/ DAVID THOMPSON David Thompson Chief Financial Officer (Principal Accounting Officer)

Exhibit Index

Exhibit Number			Exhibit Description
	3.1		Articles of Amendment and Restatement of PMC Commercial Merger Sub, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed with the SEC on May 2, 2014).
	3.1(a	)	Articles of Amendment (Name Change) (incorporated by reference to Exhibit 3.4 to the Registrant's Current Report on Form 8-K filed with the SEC on May 2, 2014).
	3.1(b	)	Articles of Amendment (Reverse Stock Split) (incorporated by reference to Exhibit 3.5 to the Registrant's Current Report on Form 8-K filed with the SEC on May 2, 2014).
	3.1(c	)	Articles of Amendment (Par Value Decrease) (incorporated by reference to Exhibit 3.6 to the Registrant's Current Report on Form 8-K filed with the SEC on May 2, 2014).
	3.2		Bylaws (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K filed with the SEC on May 2, 2014).
	10.1		Credit Agreement, dated as of August 28, 2013, among CIM Urban Partners, L.P., CIM Urban REIT, LLC, Bank of America, N.A., as Administrative Agent, JPMorgan Chase Bank, N.A. as Syndication Agent and the other Lenders party thereto (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
	10.2		Consent and First Amendment to Credit Agreement, dated as of October 16, 2013, among CIM Urban Partners, L.P., CIM Urban REIT, LLC, each Lender party thereto and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
	10.3		Second Amendment to Credit Agreement, dated as of April 7, 2014, among CIM Urban Partners, L.P., each Lender party thereto and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
	10.4		Credit Agreement, dated as of February 6, 2012, among CIM Urban Partners, L.P., CIM Urban REIT, LLC, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, JPMorgan Chase Bank, N.A., as Syndication Agent and the other Lenders party thereto (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
	10.5		First Amendment to Credit Agreement, dated as of August 28, 2013, among CIM Urban Partners, L.P., CIM Urban REIT, LLC, each Lender party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer (incorporated by reference to Exhibit 10.5 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
	10.6		Consent and Second Amendment to Credit Agreement, dated as of October 16, 2013, among CIM Urban Partners, L.P., CIM Urban REIT, LLC, each Lender party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer (incorporated by reference to Exhibit 10.6 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).
	10.7		Third Amendment to Credit Agreement, dated as of April 7, 2014, among CIM Urban Partners, L.P., each Lender party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer (incorporated by reference to Exhibit 10.7 to the Registrant's Current Report on Form 8-K filed with the SEC on April 11, 2014).

Exhibit Number		Exhibit Description
	*10.8	Service Agreement, dated as of August 7, 2014, by and among CIM Commercial Trust Corporation and CIM Service Provider, LLC, under the Master Services Agreement dated March 11, 2014, by and among PMC Commercial Trust, certain of its subsidiaries, and CIM Service Provider, LLC.
	*10.9	Form of Indemnification Agreement for directors and officers of CIM Commercial Trust Corporation
	10.10	Third Amendment to the Credit Agreement, dated as of July 19, 2014, among CIM Urban Partners, L.P., each Lender party thereto and Bank of America, N.A., as Administrative Agent, (Incorporate by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on August 1, 2014).
	*31.1	Section 302 Officer Certification—President
	*31.2	Section 302 Officer Certification—Chief Financial Officer
	**32.1	Section 906 Officer Certification—President
	**32.2	Section 906 Officer Certification—Chief Financial Officer
	101.INS	XBRL Instance Document
	101.SCH	XBRL Taxonomy Extension Schema Document
	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
	101.LAB	XBRL Taxonomy Extension Label Linkbase Document
	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

*

Filed herewith.

**

Furnished herewith

EX-10.8

Exhibit 10.8

Service Agreement under the Master Services Agreement

This AGREEMENT (as amended, modified or supplemented from time to time, this “Agreement”), dated as of August 7, 2014, is entered into by and among CIM Service Provider, LLC (“CIM Service Provider”) and CIM Commercial Trust Corporation (“CMCT”).

RECITALS:

Whereas CMCT, CIM Service Provider and the other parties thereto have executed a Master Services Agreement, dated as of March 11, 2014 (as amended, modified or supplemented from time to time, the “MSA”);

Whereas CIM Service Provider has provided certain services to CMCT and CMCT wishes for CIM Service Provider to continue to provide such services to CMCT under the MSA;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows.

Section 1.Services.

(a)CMCT and CIM Service Provider agree that the services that CIM Service Provider and/or its affiliates provided to CMCT from March 11, 2014 to June 30, 2014 included the following services:

(i)CMCT finance, accounting, financial reporting and tax:  public company reporting, SOX compliance, internal audit services, property-level general ledger accounting services, budgeting, forecasting, financial planning and analytics, preparing and reviewing financial statements, REIT tax compliance, real estate tax and tax advice;

(ii)technology and IT Support:  information technology controls (including) SOX related matters, system application control and reporting and providing CMCT with general and technology support;

(iii)CMCT corporate communications and investor relations:  managing CMCT’s website, handling inquiries from CMCT’s public investors, assisting CMCT with internal and external presentations, designing CMCT’s press strategies and drafting press releases;

(iv)insurance:  assisting CMCT with obtaining, renewing and/or reviewing its insurance coverage;

(v)legal:  assisting CMCT with legal and compliance matters; and

(vi)human resources:  assisting CMCT with human resources matters.

(b)From and after June 30, 2014, CIM Service Provider agrees that it will continue to provide the services described in subsection (a) above to CMCT and such other services as may be agreed between CIM Service Provider and CMCT.

(c)CMCT and CIM Service Provider agree that the services described under subsections (a) and (b) above do not and will not constitute “Base Services” under the MSA but will constitute either “Transactional Services” under Section 3.2 or Compensation Charges under Section 5.2.1

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Section 2.Payment.

(a)For performing the services described in Section 1(a) during the first quarter of 2014 (commencing on March 11, 2014), CMCT agrees to pay CIM Service Provider $45,800.

(b)For performing the services described in Section 1(a) during the second quarter of 2014, CMCT agrees to pay CIM Service Provider $244,200.

(c)CIM Service Provider represents to CMCT that the amounts described in subsections (a) and (b) above represent a percentage of the actual salaries (and costs of fringe benefits) paid to employees of CIM Service Provider and/or its affiliates that had performed the services described in Section 1(a) based on the time spent by such employees in performing such services.

(d)For the services to be performed by CIM Service Provider pursuant to Section 1(b),  CMCT agrees to pay CIM Service Provider an amount determined in accordance with the methodology described in subsection (c) above.  CIM Service Provider agrees to provide a schedule of all services furnished by CIM Service Provider to CMCT pursuant to Section 1(b) no later than 60 days after the end of each calendar quarter.

(e)CIM Service Provider acknowledges and agrees that any fees required to be paid by CMCT under this Agreement shall be subject to the approval of the independent members of the Board of Directors of CMCT (the “Independent Directors”).  CMCT agrees to (i) use its commercially reasonable efforts to cause a meeting of the Independent Directors to occur not less than quarterly to approve the payment of any amounts required under this Agreement and (ii) pay CIM Service Provider as promptly as practicable after approval of the Independent Directors.

Section 3.Term.

(a)Either party may terminate this Agreement at any time upon not less than 60 days’ prior written notice.

Section 4.The MSA.

(a)The parties agree that this Agreement shall be deemed to be a part of the MSA and the MSA shall apply to this Agreement mutatis mutandis.  To the extent there is any inconsistency between the MSA and this Agreement, the MSA shall be deemed to have been amended by this Agreement.

(b)CMCT represents that the Independent Directors have approved this Agreement.

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IN WITNESS WHEREOF, each of the undersigned, intending to be legally bound hereby, has executed this Agreement as of the date hereof.

CIM Commercial Trust Corporation

/s/ Jan S. Salit

Name: Jan S. Salit

Title: President

CIM Service Provider, LLC

/s/ Eric Rubenfeld

Name: Eric Rubenfeld

Title: Vice President and Secretary

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EX-10.9

Exhibit 10.9

FORM OF INDEMNIFICATION AGREEMENT

This Agreement (“Agreement”) is made and entered into as of August       , 2014 between CIM Commercial Trust Corporation, a Maryland corporation (the “Company”), and                                                       (“Indemnitee”).

W I T N E S S E T H:

WHEREAS, highly competent persons have become more reluctant to serve corporations and other entities as directors, officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

WHEREAS, Indemnitee served as [a director] [and] [an officer] of PMC Commercial Trust, a Texas real estate investment trust (“PMC”);

WHEREAS, on March 11, 2014, PMC completed its merger with CIM Urban REIT, LLC and, on April 28, 2014, PMC changed its state of incorporation from Texas to Maryland by merging with and into the Company, which was a wholly owned subsidiary of PMC, and operates under the name “CIM Commercial Trust Corporation”;

WHEREAS, as an inducement to Indemnitee to serve as [a director] [and] [an officer] of the Company, the Company has agreed to indemnify Indemnitee and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum extent permitted by law; and

WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification and advance of expenses;

NOW, THEREFORE, in consideration of Indemnitee’s agreement to serve or continue to serve as a director or officer of the Company and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Indemnity of Indemnitee.  The Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest extent permitted by Maryland law, as such may be amended from time to time, if, by reason of his Corporate Status (as hereinafter defined), Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding (as hereinafter defined).  Pursuant to this Section 1, Indemnitee shall be indemnified against all Expenses (as hereinafter defined), judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him, or on his behalf, in connection with such Proceeding or any claim, issue or matter therein.

2.Additional Indemnity.  In addition to, and without regard to any limitations on, the indemnification provided for in Section 1 of this Agreement, the Company shall and hereby does indemnify and hold harmless Indemnitee against all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf if, by reason of his Corporate Status, he is, or is threatened to be made, a party to or participant in any Proceeding (including a Proceeding by or in the right of the Company), including, without

limitation, all liability arising out of the negligence or active or passive wrongdoing of Indemnitee.  The only limitations that shall exist upon the Company’s obligations pursuant to this Agreement shall be (a) as provided in Section 9 hereof and (b) that the Company shall not be obligated to make any payment to Indemnitee if it is finally determined (under the procedures, and subject to the presumptions, set forth in Sections 6 and 7 hereof) that such payment would be unlawful.

3.Contribution.

(a)Whether or not the indemnification provided in Sections 1 and 2 hereof is available, in respect of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such Proceeding without requiring Indemnitee to contribute to such payment and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee.  The Company shall not enter into any settlement of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee.

(b)Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all directors, officers or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction or events from which such Proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all directors, officers or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the transaction or events that resulted in such Expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which applicable law may require to be considered.  The relative fault of the Company and all directors, officers or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive.

(c)The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by directors, officers or employees of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.

(d)To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount

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incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) from which such Proceeding arose; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

4.Indemnification for Expenses of a Witness.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness or otherwise asked to participate, in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

5.Advancement of Expenses.  Notwithstanding any other provision of this Agreement, the Company shall advance all Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding by reason of Indemnitee’s Corporate Status within thirty (30) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding.  Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation of the Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof.  Any advances and undertakings to repay pursuant to this Section 5 shall be unsecured and interest free.

6.Procedures and Presumptions for Determination of Entitlement to Indemnification.  The following procedures and presumptions shall apply in the event of any question as to whether Indemnitee is entitled to indemnification under this Agreement:

(a)To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification.  The officer of the Company receiving any such request from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification. Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate in Indemnitee’s sole discretion.   Notwithstanding the foregoing, any failure of Indemnitee to provide such a request to the Company, or to provide such a request in a timely fashion, shall not relieve the Company of any liability that it may have to Indemnitee unless, and to the extent that, such failure actually and materially prejudices the interests of the Company.

(b)Upon written request by Indemnitee for indemnification pursuant to the first sentence of Section 6(a) hereof, a determination with respect to Indemnitee’s entitlement thereto (including a determination that the Indemnitee met the standard of conduct set forth in Section 9(f)) shall be made in the specific case by one of the following methods:  (i) if a Change in Control (as hereinafter defined) shall have occurred, by Independent Counsel (as hereinafter defined) in a written opinion to the Company, a copy of which shall be delivered to Indemnitee;

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or (ii) if a Change in Control shall not have occurred, then in the Board of Directors’ election (A) by a majority vote of the Disinterested Directors or, by the majority vote of a committee of Disinterested Directors designated by the Disinterested Directors to make the determination, (B) by Independent Counsel in a written opinion to the Company, a copy of which shall be delivered to Indemnitee or (C) by a Stockholders Resolution.

(c)If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 6(b) hereof, the Independent Counsel shall be selected by the Indemnitee and approved by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the Maryland General Corporation Law (the “MGCL”), which approval shall not be unreasonably withheld or delayed.  The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 6 hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 6.

(d)In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement and has met the standard of conduct set forth in Section 9(f).  Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.  Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

(e)Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  Any Independent Counsel and/or the managing member shall act reasonably and in good faith in making a determination regarding Indemnitee’s entitlement to indemnification under this Agreement.  Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

(f)The Company acknowledges that a settlement or other disposition short of final judgment may be successful if it permits a party to avoid expense, delay, distraction, disruption and uncertainty.  In the event that any Proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such Proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise in such Proceeding.  Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

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(g)The knowledge and/or actions, or failure to act, of any other director, officer, employee or agent of the Company or any other director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement.

7.Remedies of Indemnitee.

(a)In the event that (i) a determination is made pursuant to Section 6 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 6 of this Agreement, (iii) no determination of entitlement to indemnification is made pursuant to Section 6(b) of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to this Agreement within ten (10) days after receipt by the Company of a written request therefor or (v) payment of indemnification is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 6 of this Agreement, Indemnitee shall be entitled to an adjudication in any court of competent jurisdiction, of Indemnitee’s entitlement to such indemnification.  Indemnitee shall commence such proceeding seeking an adjudication within one hundred and eighty (180) days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 7(a).  The Company shall not oppose Indemnitee’s right to seek any such adjudication.

(b)In the event that a determination shall have been made pursuant to Section 6 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this Section 7 shall be conducted in all respects as a de novo trial on the merits, and Indemnitee shall not be prejudiced by reason of the adverse determination under Section 6 of this Agreement.

(c)If a determination shall have been made pursuant to Section 6 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section 7, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s misstatement not materially misleading in connection with the application for indemnification, or (ii) a prohibition of such indemnification under Maryland law.

(d)In the event that Indemnitee, pursuant to this Section 7, seeks a judicial adjudication of his rights under, or to recover damages for breach of, this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company, the Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore and a written affirmation and undertaking in accordance with Section 5 hereof) advance, to the extent not prohibited by law or Section 9 hereof, such expenses to Indemnitee, which are incurred by Indemnitee in connection with such judicial adjudication.  If it shall be determined in such judicial adjudication that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication shall be appropriately prorated.

5

(e)The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 7 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement.

(f)Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.

8.Non-Exclusivity; Survival of Rights; Insurance; Primacy of Indemnification; Subrogation.

(a)This Agreement supersedes any prior indemnification agreement between the Company or any predecessor of the Company and the Indemnitee.  The rights of indemnification and to receive reimbursement or advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the charter or Bylaws of the Company, any agreement, or any Stockholders Resolution , or otherwise.  No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

(b)To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent or fiduciary under such policy or policies.  If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has directors’ and officers’ liability insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.  In the event of a Change in Control, the Company shall maintain in force any and all directors and officers liability insurance policies that were maintained by the Company immediately prior to the Change in Control for a period of six years with the insurance carrier or carriers and through the insurance broker in place at the time of the Change in Control; provided, however, (i) if the carriers will not offer the same policy and an expiring policy needs to be replaced, a policy substantially comparable in scope and amount shall be obtained and (ii) if any replacement insurance carrier is necessary to obtain a policy substantially comparable in scope and amount, such insurance carrier shall have an AM Best rating that is the same or better than the AM Best rating of the existing insurance carrier; provided, further, however, in no event shall the Company be required to expend in the aggregate in excess of 300% of the annual premium or premiums paid by the Company for directors and officers liability insurance in effect on the date

6

of the Change in Control.  In the event that 300% of the annual premium paid by the Company for such existing directors and officers liability insurance is insufficient for such coverage, the Company shall spend up to that amount to purchase such lesser coverage as may be obtained with such amount.

(c)In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

(d)The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

9.Exception to Right of Indemnification. Notwithstanding any provision in this Agreement (other than Section 14), the Company shall not make any indemnity or advancement of Expenses:

(a)in connection with any claim made against Indemnitee for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or

(b)in connection with any claim made against Indemnitee for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law;

(c)in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Proceeding was brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as authorized by Section 7 of this Agreement, or (ii) the Company’s charter or Bylaws, a Stockholder Resolution or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise.

(d)in connection with any Proceeding by or in the right of the Company and Indemnitee is adjudged, in a final adjudication of the Proceeding not subject to further appeal, to be liable to the Company;

(e)if Indemnitee is adjudged, in a final adjudication of any Proceeding not subject to further appeal, to be liable on the basis that personal benefit was improperly received in any Proceeding charging improper personal benefit to Indemnitee, whether or not involving action in the Indemnitee’s Corporate Status; or

(f)if it is established that (a) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the

7

result of active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

10.Investment Company Act Limitations.  Notwithstanding anything to the contrary in this Agreement, to the extent the Company is subject to the Investment Company Act of 1940, as amended, and the regulations promulgated thereunder (the “Investment Company Act”), the Company shall not indemnify Indemnitee, or reimburse or advance Expenses to Indemnitee, to the extent such indemnification, reimbursement or advance would violate the Investment Company Act.  Without limiting the foregoing, to the extent subject to the Investment Company Act, no indemnification shall be made with respect to liability arising from Indemnitee’s willful misfeasance, bad faith or gross negligence.

11.Duration of Agreement.  All agreements and obligations of the Company contained herein shall commence on March 11, 2014 and shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company and (ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 7 hereof).  This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and personal and legal representatives.

12.Security.  To the extent requested by Indemnitee and approved by the Board of Directors, the Company may at any time and from time to time provide security to Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral.  Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of Indemnitee.

13.Enforcement.

(a)The Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on it hereby in order to induce Indemnitee to serve or continue to serve as a director of the Company and the Company acknowledges that Indemnitee is relying upon this Agreement in agreeing to serve or continue to serve as a director of the Company.

(b)This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.

14.Court-Ordered Indemnification.  Notwithstanding any other provision of this Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require, may order indemnification of Indemnitee by the Company in the

8

following circumstances:

(a)if such court determines that Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in which case Indemnitee shall be entitled to recover the Expenses of securing such reimbursement; or

(b)if such court determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification as the court shall deem proper.

15.Reports to Stockholders. To the extent required by the MGCL, the Company shall report in writing to its stockholders the payment of any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Company with the notice of the meeting of stockholders of the Company next following the date of the payment of any such indemnification or advance of Expenses or prior to such meeting.

16.Definitions.  For purposes of this Agreement:

(a)A “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

(i)Acquisition of Securities by Third Party.  Any Person (as defined below) becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding interests;

(ii)Extraordinary Events.  The Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board of Directors then in office, as a consequence of which members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter; and

(iii)Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.

For purposes of this Section 16(a), the following terms shall have the following meanings:

(A)“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

(B)“Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall

9

exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any entity owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of the Company.

(C)“Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Exchange Act.

(b)“Corporate Status” means the status of a person as a present or former director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company.  As a clarification and without limiting the circumstances in which Indemnitee may be serving at the request of the Company, service by Indemnitee shall be deemed to be at the request of the Company:  (i) if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any corporation, partnership, limited liability company, joint venture, trust or other enterprise (1) of which a majority of the voting power or equity interest is or was owned directly or indirectly by the Company or (2) the management of which is controlled directly or indirectly by the Company and (ii) if, as a result of Indemnitee’s service to the Company or any of its affiliated entities, Indemnitee is subject to duties by, or required to perform services for, an employee benefit plan or its participants or beneficiaries, including as deemed fiduciary thereof.

(c)“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of Expenses is sought by Indemnitee.

(d)“Expenses” shall include all reasonable and out-of-pocket attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, participating, or being or preparing to be a witness in a Proceeding, or responding to, or objecting to, a request to provide discovery in any Proceeding.  Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including, without limitation, the premium, security for, and other costs relating to any cost bond, supersede as bond, or other appeal bond or its equivalent.  Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

(e)“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent:  (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

10

(f)“Stockholders Resolution” means a resolution of the stockholders entitled to vote generally at the election of directors or of the Board of Directors, other than the directors or officers who are parties to the Proceeding.  For the avoidance of doubt, the vote of stockholders affiliated with any Director will not be excluded.

(g)“Proceeding” includes any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other threatened, pending or completed proceeding, including, without limitation, any and all appeals, whether brought by or in the right of the Company or otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee is, was or will be involved as a party or otherwise, by reason of his Corporate Status, by reason of any action taken by him or of any inaction on his part while acting in his Corporate Status, in each case whether or not he is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification or reimbursement or advancement of Expenses can be provided under this Agreement, including one pending on or before the date of this Agreement.

17.Severability.  The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.  Without limiting the generality of the foregoing, this Agreement is intended to confer upon Indemnitee indemnification rights to the fullest extent permitted by applicable laws.  In the event any provision hereof conflicts with any applicable law, such provision shall be deemed modified, consistent with the aforementioned intent, to the extent necessary to resolve such conflict.

18.Modification and Waiver.  No supplement, modification, termination or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of this Agreement shall be binding unless executed in writing by the party against whom it is to operate.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

19.Notice By Indemnitee.  Indemnitee agrees promptly to notify the Company in writing upon being served with or otherwise receiving any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification covered hereunder.  The failure to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise unless and only to the extent that such failure or delay materially prejudices the Company.

20.Notices.  All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given:  (a) upon personal delivery to the party to be notified; (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day; (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent:

(a)To Indemnitee at the address set forth below Indemnitee signature hereto.

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(b)To the Company at:

c/o CIM Group, L.P.

6922 Hollywood Blvd, Suite 900

Los Angeles, California 90028

Attention:  General Counsel

or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

21.Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.  This Agreement may also be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

22.Headings.  The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

23.Governing Law and Consent to Jurisdiction.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules.  The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Circuit Court for Baltimore City, Maryland, or, if that Court does not have jurisdiction, the United States District Court for the District of Maryland, Baltimore Division (each, a “Maryland Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the applicable Maryland Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in the applicable Maryland Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the applicable Maryland Court has been brought in an improper or inconvenient forum.

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IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement on and as of the date first written above.

CIM COMMERCIAL TRUST CORPORATION,
a Maryland corporation
By:
	Name:
	Title:

INDEMNITEE

Name:

Address:

EXHIBIT A

AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED

To:  The Board of Directors of CIM Commercial Trust Corporation.

Re:  Affirmation and Undertaking

Ladies and Gentlemen:

This Affirmation and Undertaking is being provided pursuant to that certain Indemnification Agreement dated the            day of                             , 20        , by and between CIM Commercial Trust Corporation, a Maryland corporation (the “Company”), and the undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I am entitled to advance of Expenses in connection with [Description of Proceeding] (the “Proceeding”).

Terms used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement.

I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged actions or omissions by me in such capacity.  I hereby affirm my good faith belief that at all times, insofar as I was involved as [a director] [and] [an officer] of the Company, in any of the facts or events giving rise to the Proceeding, I (1) did not act with bad faith or active or deliberate dishonesty, (2) did not receive any improper personal benefit in money, property or services and (3) in the case of any criminal proceeding, had no reasonable cause to believe that any act or omission by me was unlawful.

In consideration of the advance by the Company for Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in connection with the Proceeding, it is established that (1) an act or omission by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money, property or services or (3) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.

IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this        day of                                         , 20        .

Name:

EX-31.1

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Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jan F. Salit, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of CIM Commercial Trust Corporation;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: 08/11/14 /s/ JAN F. SALIT
Jan F. Salit
President

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Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

EX-31.2

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Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David Thompson, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of CIM Commercial Trust Corporation;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: 08/11/14 /s/ DAVID THOMPSON
David Thompson
Chief Financial Officer

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Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

EX-32.1

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EXHIBIT 32.1

CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the Quarterly Report of CIM Commercial Trust Corporation (the "Company") on Form 10-Q for the period ended June 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jan F. Salit, President of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

        1.     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

        2.     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ JAN F. SALIT
Jan F. Salit
President
August 11, 2014

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EXHIBIT 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

EX-32.2

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EXHIBIT 32.2

CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the Quarterly Report of CIM Commercial Trust Corporation (the "Company") on Form 10-Q for the period ended June 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, David Thompson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

        1.     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

        2.     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ DAVID THOMPSON
David Thompson
Chief Financial Officer
August 11, 2014

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EXHIBIT 32.2

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

XML

SEGMENT DISCLOSURE (Tables)

6 Months Ended

Jun. 30, 2014

SEGMENT DISCLOSURE

Schedule of net operating income of reportable segments

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014(1)		2013
	(in thousands)
Office properties:
Revenues	$	45,181	$	44,137	$	88,455	$	87,597
Property expenses:
Operating		17,933		16,192		35,586		32,494
General and administrative		76		254		392		354
Total property expenses		18,009		16,446		35,978		32,848
Segment net operating income—office		27,172		27,691		52,477		54,749
Hotel properties:
Revenues		14,798		10,624		29,137		20,571
Property expenses:
Operating		9,923		7,125		19,769		13,653
General and administrative		36		83		73		162
Total property expenses		9,959		7,208		19,842		13,815
Segment net operating income—hotel		4,839		3,416		9,295		6,756
Multifamily properties:
Revenues		5,208		5,077		10,192		9,978
Property expenses:
Operating		2,583		1,915		4,670		3,806
General and administrative		54		35		79		42
Total property expenses		2,637		1,950		4,749		3,848
Segment net operating income—multifamily		2,571		3,127		5,443		6,130
Lending:
Revenues		6,271		—		7,797		—
Lending expenses:
Interest expense		635		—		897		—
General and administrative		1,253		—		1,658		—
Total lending expenses		1,888		—		2,555		—
Segment net operating income—lending		4,383		—		5,242		—
Total segment net operating income	$	38,965	$	34,234	$	72,457	$	67,635

(1)

The lending segment operations are included for the period from the Acquisition Date to June 30, 2014.

Schedule of reconciliation of segment net operating income to net income attributable to stockholders

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(in thousands)
Total segment net operating income	$	38,965		$	34,234		$	72,457		$	67,635
Interest		(4,304	)		(4,725	)		(8,259	)		(9,402	)
General and administrative		(2,191	)		(343	)		(2,587	)		(699	)
Asset management fees and other fees to related parties		(6,338	)		(5,431	)		(12,075	)		(10,840	)
Transaction costs		(32	)		(1,394	)		(500	)		(1,394	)
Depreciation and amortization		(17,286	)		(17,533	)		(33,915	)		(34,670	)
		8,814			4,808			15,121			10,630
Bargain purchase gain		—			—			4,918			—
Income before provision for income taxes		8,814			4,808			20,039			10,630
Provision for income taxes		(300	)		—			(308	)		—
Net income		8,514			4,808			19,731			10,630
Net income attributable to noncontrolling interests		(115	)		(113	)		(113	)		(109	)
Net income attributable to stockholders	$	8,399		$	4,695		$	19,618		$	10,521

Schedule of reconciliation of condensed assets of segments to consolidated total assets

	June 30, 2014		December 31, 2013
	(in thousands)
Condensed assets:
Office properties	$	1,518,743	$	1,481,757
Hotel properties		174,898		174,263
Multifamily properties		171,283		173,985
Lending		204,933		—
Non-segment assets		2,841		4,472
Total assets	$	2,072,698	$	1,834,477

Schedule of capital expenditures and originations

	Six Months Ended June 30,
	2014		2013
	(in thousands)
Capital expenditures(1):
Office properties	$	11,428	$	6,830
Hotel properties		721		1,504
Multifamily properties		429		827
Total capital expenditures		12,578		9,161
Originations		25,191		—
Total capital expenditures and originations	$	37,769	$	9,161

(1)

Represents additions and improvements to real estate investments, excluding acquisitions.

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DEBT (Details 2) (USD $)				6 Months Ended				0 Months Ended												6 Months Ended				6 Months Ended												6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 Term note	Jun. 30, 2014 Unsecured revolving line of credit with variable interest rate of prime less 50 basis points, with monthly interest payments due. Matures June 30, 2015	Jun. 30, 2014 Unsecured revolving line of credit entered into February 2012 CIM Urban Partners, L.P	Dec. 31, 2013 Unsecured revolving line of credit entered into February 2012 CIM Urban Partners, L.P	Feb. 29, 2012 Unsecured revolving line of credit entered into February 2012 CIM Urban Partners, L.P	Aug. 31, 2013 Unsecured revolving line of credit entered into February 2012 Base rate CIM Urban Partners, L.P	Feb. 29, 2012 Unsecured revolving line of credit entered into February 2012 Base rate CIM Urban Partners, L.P	Aug. 31, 2013 Unsecured revolving line of credit entered into February 2012 Base rate CIM Urban Partners, L.P Minimum	Feb. 29, 2012 Unsecured revolving line of credit entered into February 2012 Base rate CIM Urban Partners, L.P Minimum	Aug. 31, 2013 Unsecured revolving line of credit entered into February 2012 Base rate CIM Urban Partners, L.P Maximum	Feb. 29, 2012 Unsecured revolving line of credit entered into February 2012 Base rate CIM Urban Partners, L.P Maximum	Aug. 31, 2013 Unsecured revolving line of credit entered into February 2012 LIBOR CIM Urban Partners, L.P	Feb. 29, 2012 Unsecured revolving line of credit entered into February 2012 LIBOR CIM Urban Partners, L.P	Aug. 31, 2013 Unsecured revolving line of credit entered into February 2012 LIBOR CIM Urban Partners, L.P Minimum	Feb. 29, 2012 Unsecured revolving line of credit entered into February 2012 LIBOR CIM Urban Partners, L.P Minimum	Aug. 31, 2013 Unsecured revolving line of credit entered into February 2012 LIBOR CIM Urban Partners, L.P Maximum	Feb. 29, 2012 Unsecured revolving line of credit entered into February 2012 LIBOR CIM Urban Partners, L.P Maximum	Jun. 30, 2014 Unsecured revolving line of credit entered into August 2013 CIM Urban Partners, L.P	Apr. 30, 2014 Unsecured revolving line of credit entered into August 2013 CIM Urban Partners, L.P	Dec. 31, 2013 Unsecured revolving line of credit entered into August 2013 CIM Urban Partners, L.P	Aug. 31, 2013 Unsecured revolving line of credit entered into August 2013 CIM Urban Partners, L.P	Jun. 30, 2014 Unsecured revolving line of credit entered into August 2013 Base rate CIM Urban Partners, L.P	Jun. 30, 2014 Unsecured revolving line of credit entered into August 2013 Base rate CIM Urban Partners, L.P Minimum	Jun. 30, 2014 Unsecured revolving line of credit entered into August 2013 Base rate CIM Urban Partners, L.P Maximum	Jun. 30, 2014 Unsecured revolving line of credit entered into August 2013 LIBOR CIM Urban Partners, L.P	Jun. 30, 2014 Unsecured revolving line of credit entered into August 2013 LIBOR CIM Urban Partners, L.P Minimum	Jun. 30, 2014 Unsecured revolving line of credit entered into August 2013 LIBOR CIM Urban Partners, L.P Maximum	Jun. 30, 2014 Secured Borrowings	Jun. 30, 2014 Secured Borrowings, Principal	Jun. 30, 2014 Mortgages Payable	Dec. 31, 2013 Mortgages Payable	Jun. 30, 2014 All Other Principal	Dec. 31, 2013 All Other Principal	Jun. 30, 2014 Unsecured term loan and revolving credit facility item
Debt
Principal amount of debt			$ 20,000,000
Number of banks whom with company currently in negotiations as joint lead arrangers, to finalize facility																																				2
Maximum borrowing capacity				25,000,000			100,000,000														200,000,000		125,000,000													550,000,000
Maximum aggregate facilities with an accordion feature																																				850,000,000
Asset coverage required to be maintained on balances outstanding				3.00
Amount available for future borrowings				24,300,000	0	0														12,000,000		61,000,000
Amount outstanding under the facility					100,000,000	100,000,000														188,000,000		64,000,000
Variable rate basis								base rate	base rate					LIBOR	LIBOR									base rate			LIBOR
Interest rate margin (as a percent)										0.25%	0.75%	0.85%	1.50%			1.25%	1.75%	1.85%	2.50%						0.25%	0.85%		1.25%	1.85%
Unused commitment fee dependent upon amount of aggregate unused commitments, one (as a percent)					0.25%															0.25%
Unused commitment fee dependent upon amount of aggregate unused commitments, two (as a percent)					0.35%															0.35%
Period of extension option					1 year
Maximum borrowing capacity contingent upon certain conditions				40,000,000																150,000,000
Accrued interest and unused commitment fee payable	1,155,000	1,017,000
Principal payments on, and estimated amortization of debt
2014 (Six months ending December 31, 2014)	211,853,000																														575,000	3,278,000		208,000,000
2015	78,935,000																														1,180,000	77,055,000		700,000
2016	105,574,000																														1,220,000	4,354,000		100,000,000
2017	5,905,000																														1,263,000	4,642,000
2018	25,609,000																														1,309,000	24,300,000
Thereafter	170,229,000																														31,663,000	111,496,000		27,070,000
Total Debt	$ 598,105,000		$ 20,000,000	$ 700,000																										$ 37,210,000	$ 37,210,000	$ 225,125,000	$ 228,319,000	$ 335,770,000	$ 164,000,000

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INVESTMENTS IN REAL ESTATE (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
INVESTMENTS IN REAL ESTATE
Land	$ 347,693	$ 331,060
Land improvements	27,884	27,536
Buildings and improvements	1,486,103	1,454,854
Furniture, fixtures, and equipment	23,332	23,051
Tenant improvements	191,451	183,915
Work in progress	12,137	9,987
Investments in real estate, gross	2,088,600	2,030,403
Accumulated depreciation	(377,090)	(348,238)
Net investments in real estate	$ 1,711,510	$ 1,682,165

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STOCK BASED COMPENSATION PLANS (Details) (USD $)	6 Months Ended			6 Months Ended	3 Months Ended	6 Months Ended			0 Months Ended	6 Months Ended	0 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended		0 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Apr. 28, 2014	Dec. 31, 2013	Jun. 30, 2014 Executive officers item	Jun. 30, 2014 Independent directors	Jun. 30, 2014 Independent directors	Apr. 28, 2014 Independent directors	Apr. 28, 2014 PMC Commercial 2005 Equity Incentive Plan	Mar. 11, 2014 PMC Commercial Board of directors	Jun. 30, 2014 Restricted shares	May 06, 2014 Restricted shares Executive officers item	Jun. 30, 2014 Restricted shares Executive officers	Jun. 30, 2014 Restricted shares Executive officers	Jun. 30, 2014 Restricted shares Executive officers Employment Agreements	Jun. 30, 2014 Restricted shares Executive officers Employment Agreements item	Apr. 28, 2014 Restricted shares Maximum Executive officers	Jun. 12, 2014 Options	Jun. 30, 2014 Options	Jun. 30, 2014 Options	Mar. 11, 2014 Options
Share-based compensation plans
Options outstanding (in shares)																				19,700
Exercise of stock options (in shares)																			14,500
Exercise of stock options	$ 201,000																		$ 201,000
Options granted (in shares)																	11,850
Weighted average exercise price of outstanding options (in dollars per share)																	$ 23.16
Assumptions
Expected term																			3 years
Risk-free interest rate (as a percent)																			0.94%
Expected dividend yield (as a percent)																			3.78%
Expected volatility (as a percent)																			9.37%
Expected forfeiture rate (as a percent)																			1.00%
Stock-based compensation expense					31,000	31,000						19,000	19,000	315,000	315,000			8,000	8,000
Common shares authorized before amendment (in shares)		100,000,000						100,000
Common shares, authorized shares	200,000,000	1,000,000,000	20,000,000					300,000
Increase in annual limitation (in shares)							100,000									4,000
Granted (in shares)									6,000		2,000
Award granted to each independent members of the board of directors									2,000
Number of executive officers											2
Award vesting period											2 years
Percentage of award vesting immediately and at the end of each of the next two years											33.00%
Number of employees covered under employment agreement				2											2
Share awards to be granted as retention bonus under employment agreement, adjusted for the reverse stock split													105,000		105,000
Unrecognized compensation expense										$ 2,017,000
Recognition period										2 years

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
As previously reported | Hotel revenues
Hotel revenues	$ 10,555,000	$ 20,132,000
As previously reported | Other income
Other income	1,266,000	1,640,000
As previously reported | Hotel operating expenses
Hotel operating expenses	7,042,000	13,481,000
Reclassifications to conform to current year presentation | Rental and other property income
Hotel revenues	10,555,000	20,132,000
Reclassifications to conform to current year presentation | Interest and other income
Other income	1,266,000	1,640,000
Reclassifications to conform to current year presentation | Other property operating expenses
Hotel operating expenses	$ 7,042,000	$ 13,481,000

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STOCK-BASED COMPENSATION PLANS (Tables)

6 Months Ended

Jun. 30, 2014

STOCK BASED COMPENSATION PLANS

Schedule of assumptions used in valuation of fair value of options

Assumptions
Expected term (years)	3.0
Risk-free interest rate	0.94	%
Expected dividend yield	3.78	%
Expected volatility	9.37	%
Expected forfeiture rate	1.0	%

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EARNINGS PER SHARE (''EPS'') (Details 2) (CIM Urban REIT)	0 Months Ended
	Mar. 11, 2014	Mar. 11, 2014
Earnings per share (EPS)
Shares issued in connection with the Merger	2,226,509
Number of shares to be issued on conversion of preferred shares	91,039,999
Number of shares to be issued on conversion of preferred stock expressed as a percentage of outstanding stock		97.80%
Preferred shares
Earnings per share (EPS)
Shares issued in connection with the Merger	65,028,571

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2014

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Interim Financial Information

Interim Financial Information—The accompanying interim consolidated financial statements of CIM Commercial have been prepared by our management in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Certain information and note disclosures required for annual financial statements have been condensed or excluded pursuant to Securities and Exchange Commission ("SEC") rules and regulations. Accordingly, the interim consolidated financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. Our accompanying interim consolidated financial statements should be read in conjunction with CIM Urban's audited consolidated financial statements and the notes thereto, included in our Current Report on Form 8-K/A dated May 9, 2014.

Principles of Consolidation

Principles of Consolidation—The consolidated financial statements include the accounts of CIM Commercial and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Investments in Real Estate

Investments in Real Estate—Real estate acquisitions are recorded at cost as of the acquisition date. Costs related to the acquisition of properties are expensed as incurred. Investments in real estate are stated at depreciated cost. Depreciation and amortization are recorded on a straight line basis over the estimated useful lives as follows:

Buildings and improvements	15 - 40 years
Furniture, fixtures, and equipment	3 - 5 years
Tenant improvements	Shorter of the useful lives or the terms of the related leases

        Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred.

        Investments in real estate are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount to the future net cash flows, undiscounted and without interest, expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The estimated fair value of the asset group identified for step two testing is based on either the income approach with market discount rate, terminal capitalization rate and rental rate assumptions being most critical, or on the sales comparison approach to similar properties. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. No impairment of long-lived assets was recognized during the three and six months ended June 30, 2014 and 2013.

Loans Receivable

Loans Receivable—We primarily originate loans to small businesses collateralized by first liens on the real estate of the related business. Loans receivable are carried at their unamortized principal balance less unamortized acquisition discounts and loan loss reserves, if applicable, and adjusted for capitalized loan origination costs. For loans originated under the Small Business Administration's (the "SBA") 7(a) Guaranteed Loan Program (the "SBA 7(a) Program") upon sale of the SBA guaranteed portion of the loans which are accounted for as sales, the unguaranteed portion of the loan retained by us is valued on a fair value basis and a discount is recorded as a reduction in basis of the retained portion of the loan.

        We have a quarterly review process to identify and evaluate potential exposure to loan losses. Loans that require specific identification review are identified based on one or more negative characteristics including, but not limited to, non-payment or lack of timely payment of principal and/or interest or property taxes or deterioration of the physical property. The specific identification process begins with management's evaluation of the estimated fair value of the loan utilizing the present value of the expected future cash flows discounted at the loan's effective interest rate and/or an estimation of underlying collateral values. The probability of loss is then determined based on various factors including our historical experience with similar borrowers and/or individual borrower or collateral characteristics, and in certain circumstances, the strength of the guarantors. The liquidation probability is then applied to the identified loss exposure to determine the general or specific reserve for that loan.

        At the Acquisition Date, the carrying value of our loans was adjusted to estimated fair market value and acquisition discounts of $33,907,000 were recorded, which is being accreted to interest income using the effective interest method. We will establish a general loan loss reserve when available information indicates that it is probable a loss has occurred based on the carrying value of the portfolio and the amount of the loss can be reasonably estimated. Significant judgment is required in determining the general loan loss reserve, including estimates of the likelihood of default and the estimated fair value of the collateral. The general loan loss reserve includes those loans, which may have negative characteristics which have not yet become known to us. In addition to the reserves established on loans not considered impaired that have been evaluated under a specific evaluation, the general loan loss reserve uses a consistent methodology to determine a loss percentage to be applied to loan balances. These loss percentages are based on many factors, primarily cumulative and recent loss history and general economic conditions.

        We recognized interest income and fees for the three and six months ended June 30, 2013, related to a first mortgage note on a hotel located near the Los Angeles Airport ("LAX") of $0 and $316,000, respectively. On October 8, 2013, we submitted the highest bid at a foreclosure auction and took possession of the hotel. The mortgage note investment basis was transferred to the property components at their relative fair values on title transfer.

Deferred Rent Receivable and Charges

Deferred Rent Receivable and Charges—Deferred rent receivable and charges consist of deferred rent, deferred loan costs and deferred leasing costs. Deferred rent receivable is $50,971,000 and $49,543,000 at June 30, 2014, and December 31, 2013, respectively. Deferred loan costs, which represent legal and third-party fees incurred in connection with our borrowing activities, are capitalized and amortized to interest expense on a straight line basis over the life of the related loan, approximating the effective interest method. Deferred loan costs of $6,315,000 and $5,748,000 are presented net of accumulated amortization of $4,272,000 and $3,620,000 at June 30, 2014, and December 31, 2013, respectively. Deferred leasing costs, which represent lease commissions and other direct costs associated with the acquisition of tenants, are capitalized and amortized on a straight line basis over the terms of the related leases. Deferred leasing costs of $60,368,000 and $55,826,000 are presented net of accumulated amortization of $23,423,000 and $19,891,000 at June 30, 2014, and December 31, 2013, respectively.

Noncontrolling Interests

Noncontrolling Interests—Noncontrolling interests represent interests in the various properties not owned by us.

Consolidation Considerations for Our Investments in Real Estate

Consolidation Considerations for Our Investments in Real Estate—Accounting Standards Codification ("ASC") 810-10, Consolidation, addresses how a business enterprise should evaluate whether it has a controlling interest in an entity through means other than voting rights that would require the entity to be consolidated. We analyze our investments in real estate in accordance with this accounting standard to determine whether they are variable interest entities, and if so, whether we are the primary beneficiary. Our judgment with respect to our level of influence or control over an entity and whether we are the primary beneficiary of a variable interest entity involves consideration of various factors, including the form of our ownership interest, our voting interest, the size of our investment (including loans), and our ability to participate in major policy-making decisions. Our ability to correctly assess our influence or control over an entity affects the presentation of these investments in our consolidated financial statements.

Use of Estimates

Use of Estimates—The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Reclassifications

Reclassifications—Certain prior-period amounts have been reclassified to conform with the current-period presentation. For the three and six months ended June 30, 2013, hotel revenues of $10,555,000 and $20,132,000, respectively, have been reclassified to rental and other property income, other income of $1,266,000 and $1,640,000, respectively, has been reclassified to interest and other income, and hotel operating expenses of $7,042,000 and $13,481,000, respectively, have been reclassified to rental and other property operating expenses.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements—In April 2014, the Financial Accounting Standards Board ("the FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360). Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions that do not meet the discontinued-operations criteria. The revised guidance is effective prospectively to all disposals (or classifications as held for sale) that occur in annual periods (and interim periods therein) beginning on or after December 15, 2014, with early adoption permitted. Entities are prohibited from applying the new ASU to any component, equity method investment, or acquired business that is classified as held for sale before the adoption date. We early adopted this guidance during the second quarter of 2014, and the adoption did not have a material impact on our consolidated financial statements.

        In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including the guidance on real estate de-recognition for most transactions. For public entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early application is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in the ASU. The modified approach provides entities relief from having to restate and present comparable prior-year financial statement information; however, entities will still need to evaluate existing contracts as of the date of initial adoption under the ASU to determine whether a cumulative adjustment is necessary. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

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LOANS RECEIVABLE (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014
Amount
Current	$ 152,162
Between 29 and 59 days delinquent	162
Over 89 days delinquent	827
Total	153,151
%
Current (as a percent)	99.40%
Between 29 and 59 days delinquent (as a percent)	0.10%
Over 89 days delinquent (as a percent)	0.50%
Total (as a percent)	100.00%
Commercial Mortgage Loans
Amount
Current	119,326
Over 89 days delinquent	827
Total	120,153
%
Current (as a percent)	99.30%
Over 89 days delinquent (as a percent)	0.70%
Total (as a percent)	100.00%
SBA 7(a) Loans
Amount
Current	32,836
Between 29 and 59 days delinquent	162
Total	$ 32,998
%
Current (as a percent)	99.50%
Between 29 and 59 days delinquent (as a percent)	0.50%
Total (as a percent)	100.00%

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MERGER (Details 2) (USD $)	0 Months Ended	6 Months Ended
	Mar. 11, 2014	Jun. 30, 2014	Jun. 30, 2013	Mar. 11, 2014
Liabilities
Bargain purchase gain		$ (4,918,000)
PMC Commercial | CIM Urban
Assets
Cash and cash equivalents				3,185,000
Loans receivable				207,140,000
Accounts receivable and interest receivable				755,000
Other assets				5,396,000
Intangible assets				2,957,000
Total assets acquired				219,433,000
Liabilities
Debt				99,849,000
Accounts payable and accrued expenses				7,396,000
Special dividend liability and dividend payable				59,286,000
Other liabilities				3,374,000
Total liabilities assumed				169,905,000
Net identifiable assets acquired				49,528,000
Bargain purchase gain	(4,918,000)
Net purchase price				44,610,000
Pro Forma Financial Information
Pro forma revenues		138,916,000	128,640,000
Pro forma net income		15,489,000	14,575,000
Pro forma basic earnings per share (in dollars per share)		$ 0.16	$ 0.15
Pro forma diluted earnings per share (in dollars per share)		$ 0.16	$ 0.15
transaction costs		$ 3,046,000

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FUTURE MINIMUM LEASE RENTALS (Tables)

6 Months Ended

Jun. 30, 2014

FUTURE MINIMUM LEASE RENTALS

Summary of future minimum rental revenues under long-term operating leases excluding tenant reimbursements of certain costs

Years Ending December 31	Governmental Tenants		Other Tenants		Total
	(in thousands)
2014 (Six months ending December 31, 2014)	$	29,019	$	42,666	$	71,685
2015		46,321		85,064		131,385
2016		43,517		80,066		123,583
2017		40,356		75,065		115,421
2018		39,057		52,595		91,652
Thereafter		172,747		218,261		391,008
	$	371,017	$	553,717	$	924,734

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OTHER INTANGIBLE ASSETS (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Intangible assets and liabilities
Amortization expenses	$ 17,286,000	$ 17,533,000	$ 33,915,000	$ 34,670,000
Intangible liabilities
Net	(9,225,000)		(9,225,000)		(8,800,000)
Future accretion of acquisition related intangible liabilities
Net	(9,225,000)		(9,225,000)		(8,800,000)
Acquired Below-Market Leases
Intangible assets and liabilities
Amortization expenses	697,000	796,000	1,345,000	1,592,000
Intangible liabilities
Gross balance	(63,093,000)		(63,093,000)		(61,323,000)
Accumulated amortization	53,868,000		53,868,000		52,523,000
Net	(9,225,000)		(9,225,000)		(8,800,000)
Average useful life			6 years		6 years
Future accretion of acquisition related intangible liabilities
2014 (Six months ending December 31, 2014)	(1,246,000)		(1,246,000)
2015	(2,435,000)		(2,435,000)
2016	(2,368,000)		(2,368,000)
2017	(2,261,000)		(2,261,000)
2018	(824,000)		(824,000)
Thereafter	(91,000)		(91,000)
Net	(9,225,000)		(9,225,000)		(8,800,000)
Trade-Name and License
Intangible assets
Gross balance	2,957,000		2,957,000
Net	2,957,000		2,957,000
Acquired Above-Market Leases
Intangible assets and liabilities
Amortization expenses	98,000	196,000	435,000	396,000
Intangible assets
Gross balance	8,017,000		8,017,000		8,017,000
Accumulated amortization	(7,487,000)		(7,487,000)		(7,052,000)
Net	530,000		530,000		965,000
Average useful life			4 years		4 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	167,000		167,000
2015	241,000		241,000
2016	88,000		88,000
2017	26,000		26,000
2018	8,000		8,000
Net	530,000		530,000		965,000
Acquired In-Place Leases
Intangible assets and liabilities
Amortization expenses	587,000	927,000	1,199,000	1,874,000
Intangible assets
Gross balance	80,732,000		80,732,000		79,645,000
Accumulated amortization	(74,662,000)		(74,662,000)		(73,463,000)
Net	6,070,000		6,070,000		6,182,000
Average useful life			6 years		5 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	1,084,000		1,084,000
2015	1,606,000		1,606,000
2016	1,111,000		1,111,000
2017	665,000		665,000
2018	415,000		415,000
Thereafter	1,189,000		1,189,000
Net	6,070,000		6,070,000		6,182,000
Tax Abatement
Intangible assets and liabilities
Amortization expenses	138,000	138,000	276,000	276,000
Intangible assets
Gross balance	4,273,000		4,273,000		4,273,000
Accumulated amortization	(1,496,000)		(1,496,000)		(1,220,000)
Net	2,777,000		2,777,000		3,053,000
Average useful life			8 years		8 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	275,000		275,000
2015	551,000		551,000
2016	551,000		551,000
2017	551,000		551,000
2018	551,000		551,000
Thereafter	298,000		298,000
Net	2,777,000		2,777,000		3,053,000
Advance Bookings
Intangible assets and liabilities
Amortization expenses	67,000	0	134,000	0
Intangible assets
Gross balance	8,329,000		8,329,000		8,329,000
Accumulated amortization	(8,273,000)		(8,273,000)		(8,139,000)
Net	56,000		56,000		190,000
Average useful life			3 years		3 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	56,000		56,000
Net	56,000		56,000		190,000
Franchise Affiliation Fee
Intangible assets and liabilities
Amortization expenses	99,000	99,000	198,000	198,000
Intangible assets
Gross balance	3,936,000		3,936,000		3,936,000
Accumulated amortization	(2,785,000)		(2,785,000)		(2,587,000)
Net	1,151,000		1,151,000		1,349,000
Average useful life			10 years		10 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	196,000		196,000
2015	394,000		394,000
2016	394,000		394,000
2017	167,000		167,000
Net	1,151,000		1,151,000		1,349,000
Acquired Below-Market Ground Lease
Intangible assets and liabilities
Amortization expenses	35,000	35,000	70,000	70,000
Intangible assets
Gross balance	11,685,000		11,685,000		11,685,000
Accumulated amortization	(1,212,000)		(1,212,000)		(1,142,000)
Net	10,473,000		10,473,000		10,543,000
Average useful life			84 years		84 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	70,000		70,000
2015	140,000		140,000
2016	140,000		140,000
2017	140,000		140,000
2018	140,000		140,000
Thereafter	9,843,000		9,843,000
Net	$ 10,473,000		$ 10,473,000		$ 10,543,000

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COMMITMENTS AND CONTINGENCIES (Details) (USD $)		3 Months Ended		6 Months Ended			3 Months Ended	6 Months Ended	1 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014 Ground lease for one of the project	Jun. 30, 2013 Ground lease for one of the project	Jun. 30, 2014 Ground lease for one of the project	Jun. 30, 2013 Ground lease for one of the project	Dec. 31, 2013 Ground lease for one of the project	Jun. 30, 2014 Office space in Dallas, Texas	Jun. 30, 2014 Office space in Dallas, Texas	Aug. 31, 2014 REIT Redux, L.P. et al v. PMC Commercial Trust, et al CIM Service Provider	Jul. 31, 2014 REIT Redux, L.P. et al v. PMC Commercial Trust, et al CIM Service Provider	Jan. 28, 2014 REIT Redux, L.P. et al v. PMC Commercial Trust, et al CIM Service Provider Maximum	Jul. 31, 2014 REIT Redux, L.P. et al v. PMC Commercial Trust, et al CIM Service Provider Maximum	Jan. 28, 2014 REIT Redux, L.P. et al v. PMC Commercial Trust, et al CIM Service Provider Maximum	Jun. 30, 2014 Executive officers item	Jun. 30, 2014 Executive officers Restricted share awards
Commitments and contingencies
Outstanding loan commitments and approvals to fund loans	$ 26,200,000
Number of employees covered under employment agreement														2
Multiplier used for the calculation of severance compensation or change in control payments														2.99
Period of annual compensation paid to employee used to calculate severance compensation or change in control payments														3 years
Multiplier used for the calculation of payments in the event of death of employee														2
Multiplier used for the calculation of payments in the event of disability to employee														1
Share awards to be granted as retention bonus under employment agreement															105,000
Number of common stock agreed to be purchased as a part of litigation settlement											550,000
Common stock market price (in dollars per share)													$ 25.00
Number of common shares acquired as a part of litigation settlement										248,000
Attorney's fees and counselor expenses											772,000
Number of common shares agreed to be purchase which are owned by REIT Redux												100,000
Number of common shares acquired which are owned by REIT Redux									100,000
Current annual rent				437,000
Period after which the annual rental payment will be increased by greater of 15% or 50% of the increase in the Consumer Price Index				5 years
Increase in annual rental payment after every 5 years, option one (as a percent)				15.00%
Increase in annual rental payment after every 5 years, option two (as a percent)				50.00%
Adjustment period used to calculate increase in the Consumer Price Index				5 years
Increase in rent payable during the balance of the lease term expressed as a percentage of rent payable during the immediately preceding lease year commencing on June 1, 2040 and 2065				10.00%
Rent expense		438,000	438,000	876,000	876,000		49,000	65,000
Straight line rent liability		10,450,000		10,450,000		9,863,000	33,000	33,000
Future noncancelable minimum lease payments
2014 (Six months ending December 31, 2014)	345,000
2015	616,000
2016	743,000
2017	749,000
2018	607,000
Thereafter	129,031,000
Total	$ 132,091,000

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ACQUISITIONS (Details) (USD $)	6 Months Ended	12 Months Ended	0 Months Ended		6 Months Ended
	Jun. 30, 2014 In-place leases	Dec. 31, 2013 In-place leases	Apr. 18, 2014 Office building located in Los Angeles, CA item sqft	Jun. 30, 2014 Office building located in Los Angeles, CA	Jun. 30, 2014 Office building located in Los Angeles, CA In-place leases	Jun. 30, 2014 Office building located in Los Angeles, CA Below-market leases	Jun. 30, 2014 Office building located in Los Angeles, CA Land	Jun. 30, 2014 Office building located in Los Angeles, CA Land improvements	Jun. 30, 2014 Office building located in Los Angeles, CA Building and improvements	Jun. 30, 2014 Office building located in Los Angeles, CA Tenant improvements
Acquisitions
Fee-simple interest acquired (as a percent)				100.00%
Number of Buildings			1
Rentable Square Feet			143,000
Purchase Price			$ 44,936,000
Fair value of the assets acquired and liabilities assumed
Property, plant and equipment							16,633,000	348,000	27,947,000	691,000
Intangible assets					1,087,000	(1,770,000)
Total assets acquired				44,936,000
Weighted average amortization period	6 years	5 years			5 years	5 years
Acquisition related expenses				$ 32,000

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MERGER

6 Months Ended

Jun. 30, 2014

MERGER

MERGER

2. MERGER

        On July 8, 2013, our predecessor, PMC Commercial, entered into a merger agreement (the "Merger Agreement") with CIM Urban REIT, LLC ("CIM Urban REIT") and subsidiaries of the respective parties. CIM Urban REIT was a private commercial REIT and was the owner of CIM Urban Partners, LP ("CIM Urban"). The transaction (the "Merger") was completed on March 11, 2014 (the "Acquisition Date").

        The Merger Agreement provided for a business combination between PMC Commercial and CIM Urban. Pursuant to the Merger Agreement, PMC Commercial issued 4,400,000 shares of Common Stock and 65,028,571 shares of preferred stock. Each share of preferred stock converted into 1.4 shares of Common Stock (as adjusted for the one-for-five reverse stock split) in April 2014, resulting in the issuance of approximately 91,039,999 shares of Common Stock. This represented approximately 97.8% of PMC Commercial's outstanding stock on the Acquisition Date.

        All Common Stock that was outstanding immediately prior to the closing of the Merger remained outstanding following the Acquisition Date. In addition, stockholders of record at the close of the business day prior to the Acquisition Date received a special cash dividend of $27.50 per share of Common Stock, which was paid on March 25, 2014.

        The Merger was accounted for as a reverse acquisition under the acquisition method of accounting with CIM Urban considered to be the accounting acquirer based upon the terms of the Merger Agreement. Based on the determination that CIM Urban was the accounting acquirer in the transaction, CIM Urban allocated the purchase price to the fair value of PMC Commercial's assets and liabilities as of the Acquisition Date.

        Accordingly, the accompanying financial statements (1) include the historical financial information for CIM Urban for all periods presented, (2) include the assets and liabilities of PMC Commercial acquired on March 11, 2014 in the consolidated balance sheet as of June 30, 2014 and (3) include the results of PMC Commercial's operations and cash flows in the consolidated statements of operations and comprehensive income and cash flows for the period from the Acquisition Date through June 30, 2014. The equity of CIM Commercial is the historical equity of CIM Urban retroactively restated to reflect the number of shares of stock issued by PMC Commercial pursuant to the Merger Agreement. In connection with the reverse acquisition, for purposes of presenting equity for CIM Commercial, the historical stockholders of PMC Commercial were deemed to have been issued 2,119,244 shares of Common Stock (2,226,509 shares of Common Stock, less 107,265 shares of treasury stock) on the Acquisition Date.

        Consideration Transferred—The fair value of the consideration transferred in the reverse acquisition is determined based on the number of shares of stock the accounting acquirer would have to issue to the stockholders of the accounting acquiree in order to provide the same ratio of ownership in the combined entity following the completion of the Merger, and was determined to be the outstanding stock of PMC Commercial as of the Acquisition Date. The fair value of the consideration transferred was based on the most reliable measure, which was determined to be the market price of PMC Commercial stock as of the Acquisition Date. The computation of the fair value of the consideration transferred, based on the market price of PMC Commercial stock on the Acquisition Date, is as follows:

	(in thousands, except per share data)
PMC Commercial common stock outstanding		2,119
Equity consideration price per share of common stock	$	21.05
Fair value of the equity consideration		44,610
Payment in cash—special dividend		58,279
Total purchase price	$	102,889

        Purchase Price Allocation—As CIM Urban was the accounting acquirer in the business combination, it has allocated the purchase price to PMC Commercial's individually identifiable assets acquired and liabilities assumed based on their estimated fair values on the Acquisition Date. A bargain purchase gain was recorded as of the Acquisition Date in the amount equal to the excess of the fair value of the identifiable net assets acquired over the total purchase price.

        The following table summarizes the allocation of the purchase price:

	(in thousands)
Assets
Cash and cash equivalents	$	3,185
Loans receivable		207,140
Accounts receivable and interest receivable		755
Other assets		5,396
Intangible assets		2,957
Total assets acquired		219,433
Liabilities
Debt		99,849
Accounts payable and accrued expenses		7,396
Special dividend liability and dividend payable		59,286
Other liabilities		3,374
Total liabilities assumed		169,905
Net identifiable assets acquired		49,528
Bargain purchase gain		(4,918	)
Net purchase price	$	44,610

        Pro Forma Financial Information—The following pro forma consolidated results of net income for the six months ended June 30, 2014 and 2013 assume the business combination was completed as of January 1, 2013:

	Six Months Ended June 30,
	2014		2013
	(in thousands, except per share amounts)
Pro forma revenues	$	138,916	$	128,640
Pro forma net income	$	15,489	$	14,575
Pro forma basic earnings per share	$	0.16	$	0.15
Pro forma diluted earnings per share	$	0.16	$	0.15

        The pro forma amounts include the historical operating results of CIM Urban and PMC Commercial prior to the business combination, with adjustments directly attributable to the business combination. The pro forma results for the six months ended June 30, 2014 exclude transaction costs of $3,046,000 and the $4,918,000 bargain purchase gain recorded on the Acquisition Date.

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FUTURE MINIMUM LEASE RENTALS (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014
Future minimum lease rentals
2014 (Six months ending December 31, 2014)	$ 71,685
2015	131,385
2016	123,583
2017	115,421
2018	91,652
Thereafter	391,008
Total	924,734
Governmental Tenants
Future minimum lease rentals
2014 (Six months ending December 31, 2014)	29,019
2015	46,321
2016	43,517
2017	40,356
2018	39,057
Thereafter	172,747
Total	371,017
Other Tenants
Future minimum lease rentals
2014 (Six months ending December 31, 2014)	42,666
2015	85,064
2016	80,066
2017	75,065
2018	52,595
Thereafter	218,261
Total	$ 553,717

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Investments in Real Estate
Impairment of long-lived assets	$ 0	$ 0	$ 0	$ 0
Buildings and improvements | Minimum
Investments in Real Estate
Estimated useful lives			15 years
Buildings and improvements | Maximum
Investments in Real Estate
Estimated useful lives			40 years
Furniture, fixtures, and equipment | Minimum
Investments in Real Estate
Estimated useful lives			3 years
Furniture, fixtures, and equipment | Maximum
Investments in Real Estate
Estimated useful lives			5 years

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INVESTMENTS IN REAL ESTATE (Tables)

6 Months Ended

Jun. 30, 2014

INVESTMENTS IN REAL ESTATE

Schedule of investments in real estate

	June 30, 2014			December 31, 2013
	(in thousands)
Land	$	347,693		$	331,060
Land improvements		27,884			27,536
Buildings and improvements		1,486,103			1,454,854
Furniture, fixtures, and equipment		23,332			23,051
Tenant improvements		191,451			183,915
Work in progress		12,137			9,987
		2,088,600			2,030,403
Accumulated depreciation		(377,090	)		(348,238	)
Net investments in real estate	$	1,711,510		$	1,682,165

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ACQUISITIONS (Tables) (Office building located in Los Angeles, CA)

6 Months Ended

Jun. 30, 2014

Office building located in Los Angeles, CA

Acquisitions

Schedule of acquisitions

Property	Asset Type	Date of Acquisition		Number of Buildings		Rentable Square Feet		Purchase Price
								(in thousands)
4750 Wilshire Blvd., Los Angeles, CA	Office		April 18, 2014		1		143,000	$	44,936

Schedule of the fair value of the assets acquired and liabilities assumed

	2014 Acquisition
	(in thousands)
Land	$	16,633
Land improvements		348
Building and improvements		27,947
Tenant improvements		691
Acquired in-place leases(1)		1,087
Acquired below-market leases(2)		(1,770	)
Net assets acquired	$	44,936

(1)

In-place leases have a weighted average amortization period of 5.0 years.

(2)

Below-market leases have a weighted average amortization period of 5.0 years.

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EARNINGS PER SHARE (''EPS'') (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014
EARNINGS PER SHARE ("EPS")
Increase in weighted average shares outstanding to reflect the dilutive effect of share options (in shares)	5,000	6,000
Options
Anti-dilutive securities
Anti-dilutive securities excluded from calculating diluted EPS (in shares)	11,850	11,850

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	0 Months Ended	3 Months Ended	6 Months Ended
	Mar. 11, 2014 PMC Commercial	Jun. 30, 2013 First mortgage note secured by hotel located near Los Angeles Airport CIM Urban	Jun. 30, 2013 First mortgage note secured by hotel located near Los Angeles Airport CIM Urban
Loans receivable
Discount on acquisition	$ 33,907,000
Interest income and fees		$ 0	$ 316,000

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LOANS RECEIVABLE (Tables)

6 Months Ended

Jun. 30, 2014

LOANS RECEIVABLE

Schedule of loans receivable

	June 30, 2014
	(in thousands)
Commercial mortgage loans	$	120,153
SBA 7(a) loans, subject to secured borrowings		40,039
SBA 7(a) loans		32,998
Loans receivable		193,190
Deferred capitalized costs		129
Net loans receivable	$	193,319

Schedule of aging of loans receivable subject to credit risk

June 30, 2014	Commercial Mortgage Loans				SBA 7(a) Loans				Totals
	(dollars in thousands)
Current	$	119,326	99.3	%	$	32,836	99.5	%	$	152,162	99.4	%
Between 29 and 59 days delinquent		—	—			162	0.5			162	0.1
Between 60 and 89 days delinquent		—	—			—	—			—	—
Over 89 days delinquent		827	0.7			—	—			827	0.5
	$	120,153	100.0	%	$	32,998	100.0	%	$	153,151	100.0	%

Schedule of classification of loans receivable subject to credit risk

June 30, 2014	Commercial Mortgage Loans				SBA 7(a) Loans				Totals
	(dollars in thousands)
Satisfactory	$	116,527	97.0	%	$	32,368	98.1	%	$	148,895	97.2	%
OAEM		1,947	1.6			—	—			1,947	1.3
Substandard		849	0.7			539	1.6			1,388	0.9
Doubtful		830	0.7			91	0.3			921	0.6
	$	120,153	100.0	%	$	32,998	100.0	%	$	153,151	100.0	%

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OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2014

OTHER INTANGIBLE ASSETS

Schedule of intangible assets and liabilities and related accumulated amortization and accretion

	Assets																				Liabilities
June 30, 2014	Acquired Above-Market Leases			Acquired In-Place Leases			Tax Abatement			Advance Bookings			Franchise Affiliation Fee			Acquired Below-Market Ground Lease			Trade-Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	8,017		$	80,732		$	4,273		$	8,329		$	3,936		$	11,685		$	2,957	$	(63,093	)
Accumulated amortization		(7,487	)		(74,662	)		(1,496	)		(8,273	)		(2,785	)		(1,212	)		—		53,868
	$	530		$	6,070		$	2,777		$	56		$	1,151		$	10,473		$	2,957	$	(9,225	)
Average useful life (in years)		4			6			8			3			10			84			Indefinite		6

	Assets																		Liabilities
December 31, 2013	Acquired Above-Market Leases			Acquired In-Place Leases			Tax Abatement			Advance Bookings			Franchise Affiliation Fee			Acquired Below-Market Ground Lease			Acquired Below-Market Leases
	(in thousands)
Gross balance	$	8,017		$	79,645		$	4,273		$	8,329		$	3,936		$	11,685		$	(61,323	)
Accumulated amortization		(7,052	)		(73,463	)		(1,220	)		(8,139	)		(2,587	)		(1,142	)		52,523
	$	965		$	6,182		$	3,053		$	190		$	1,349		$	10,543		$	(8,800	)
Average useful life (in years)		4			5			8			3			10			84			6

Schedule of future amortization and accretion of acquisition related intangible assets and liabilities

	Assets												Liabilities
Years Ending December 31,	Acquired Above-Market Leases		Acquired In-Place Leases		Tax Abatement		Advance Bookings		Franchise Affiliation Fee		Acquired Below-Market Ground Lease		Acquired Below-Market Leases
	(in thousands)
2014 (Six months ending December 31, 2014)	$	167	$	1,084	$	275	$	56	$	196	$	70	$	(1,246	)
2015		241		1,606		551		—		394		140		(2,435	)
2016		88		1,111		551		—		394		140		(2,368	)
2017		26		665		551		—		167		140		(2,261	)
2018		8		415		551		—		—		140		(824	)
Thereafter		—		1,189		298		—		—		9,843		(91	)
	$	530	$	6,070	$	2,777	$	56	$	1,151	$	10,473	$	(9,225	)

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ORGANIZATION AND OPERATIONS

6 Months Ended

Jun. 30, 2014

ORGANIZATION AND OPERATIONS

ORGANIZATION AND OPERATIONS

1. ORGANIZATION AND OPERATIONS

        CIM Commercial Trust Corporation ("CIM Commercial") or together with its wholly-owned subsidiaries, "we," "us" or "our," invests in substantially stabilized real estate assets located in high-population density, high- barrier-to-entry urban markets, which include traditional downtown areas and urban main streets that lie within the metropolitan areas of the United States of America. We also obtain income from the yield and other related fee income earned on our investments from our lending activities, which have principally been to borrowers in the hospitality industry. We were originally organized in 1993 as PMC Commercial Trust ("PMC Commercial"), a Texas real estate investment trust.

        On April 28, 2014, PMC Commercial's charter was amended to increase the authorized shares of common stock of PMC Commercial from 100,000,000 to 1,000,000,000 shares (20,000,000 and 200,000,000 after giving effect to the reverse stock split described below) and PMC Commercial changed its state of incorporation (the "Reincorporation") from Texas to Maryland by means of a merger of PMC Commercial with and into a newly formed, wholly-owned subsidiary Maryland corporation. In addition, we changed our name to CIM Commercial Trust Corporation on April 29, 2014. Our common stock ("Common Stock") is currently traded on the NASDAQ Global Market (symbol "CMCT").

        On April 28, 2014, we filed Articles of Amendment (the "Reverse Split Amendment") to effectuate a one-for-five reverse stock split of the Common Stock, effective April 29, 2014. Pursuant to the reverse stock split, each five shares of Common Stock issued and outstanding immediately prior to the effective time of the reverse stock split were converted into one (1) share of Common Stock. Fractional shares of Common Stock were not issued as a result of the reverse stock split; instead, holders of pre-split shares of Common Stock who otherwise would have been entitled to receive a fractional share of Common Stock received an amount in cash equal to the product of the fraction of a share multiplied by the closing price of the Common Stock (as adjusted for the one-for-five reverse stock split) on April 28, 2014. In connection with and immediately following the filing of the Reverse Split Amendment, the Company filed Articles of Amendment (the "Par Value Amendment") to decrease the par value of the Common Stock issued and outstanding to $0.001 per share, effective April 29, 2014, subsequent to the effective time of the Reverse Split Amendment. All per share and outstanding share information has been presented to reflect the reverse stock split.

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DEBT (Tables)

6 Months Ended

Jun. 30, 2014

DEBT

Schedule of debt

	June 30, 2014			December 31, 2013
	(in thousands)
Mortgage loan with a fixed interest rate of 7.66% per annum, with monthly payments of principal and interest. The loan has a 20-year amortization schedule with a $25,324,000 balance due on December 1, 2015. The loan is nonrecourse.	$	27,537		$	28,262
Mortgage loan with a fixed interest rate of 4.50% per annum, with monthly payments of interest only for 10 years, and payments of interest and principal starting in February 2022. The loan has a $42,008,000 balance due on January 5, 2027. The loan is nonrecourse.		46,000			46,000
Mortgage loan with a fixed interest rate of 5.56% per annum, with monthly payments of principal and interest. The loan has a 10-year amortization schedule with a $12,288,000 balance due on July 1, 2015. The loan is nonrecourse.		12,590			12,737
Mortgage loan with a fixed interest rate of 6.65% per annum, with monthly payments of principal and interest. The loan has a 25-year amortization schedule with a $21,136,000 balance due on July 15, 2018. The loan is nonrecourse.		33,432			34,755
Mortgage loan with a fixed interest rate of 5.06% per annum, with monthly payments of principal and interest, and a balance of $33,068,000 due on September 1, 2015. The loan is nonrecourse.		34,161			34,583
Mortgage loans with a fixed interest rate of 5.39% per annum, with monthly payments of principal and interest, and a balance of $35,695,000 due on March 1, 2021. The loans are nonrecourse.		40,850			41,170
Mortgage loan with a fixed interest rate of 5.18% per annum, with monthly payments of principal and interest, and a balance of $26,232,000 due on June 5, 2021. The loan is nonrecourse.		30,555			30,812
		225,125			228,319
Premiums and discounts on assumed mortgages		2,373			2,786
Total Mortgages Payable		227,498			231,105
Secured borrowing principal on loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.99%		32,057			—
Secured borrowing principal on loans sold for excess spread, variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.58%		5,153			—
		37,210			—
Premiums on loans sold for a premium and excess spread		3,024			—
Total Secured borrowings—government guaranteed loans		40,234			—
Junior subordinated notes with a variable interest rate which resets quarterly based on the 90-day LIBOR plus 3.25%, with quarterly interest payments due. Balance due at maturity on March 30, 2035.		27,070			—
Term note with a fixed interest rate of 2.74%, principal and interest due at maturity on September 10, 2014.		20,000			—
Unsecured revolving line of credit with variable interest rate of prime less 50 basis points, with monthly interest payments due. Matures June 30, 2015.		700			—
Unsecured revolving lines of credit		288,000			164,000
		335,770			164,000
Discount on junior subordinated notes		(2,199	)		—
Total Other		333,571			164,000
Total Debt	$	601,303		$	395,105

Schedule of principal payments on, and estimated amortization of debt (face value)

Years Ending December 31,	Secured Borrowings Principal(1)		Mortgages Payable		All Other Principal(2)		Total
	(in thousands)
2014 (Six months ending December 31, 2014)	$	575	$	3,278	$	208,000	$	211,853
2015		1,180		77,055		700		78,935
2016		1,220		4,354		100,000		105,574
2017		1,263		4,642		—		5,905
2018		1,309		24,300		—		25,609
Thereafter		31,663		111,496		27,070		170,229
	$	37,210	$	225,125	$	335,770	$	598,105

(1)

Principal payments are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled principal payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and/or loan liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans.

(2)

Represents the revolving credit facility, term note, junior subordinated notes, and unsecured revolving lines of credit.

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ORGANIZATION AND OPERATIONS (Details) (USD $)	0 Months Ended
	Apr. 28, 2014	Jun. 30, 2014	Dec. 31, 2013
Organization and operations
Common shares authorized before amendment	100,000,000
Common shares authorized	1,000,000,000	200,000,000	20,000,000
Common shares authorized before amendment with effect to the reverse stock split	20,000,000
Common shares authorized with effect to the reverse stock split	200,000,000
Reverse stock split ratio	0.2
Common shares, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.05

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DEBT (Details) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Debt
Gross debt	$ 598,105,000
Total Debt	601,303,000	395,105,000
Term note with a fixed interest rate of 2.74%, principal and interest due at maturity on September 10, 2014
Debt
Gross debt	20,000,000
Fixed interest rate (as a percent)	2.74%
Face amount	20,000,000
Mortgages Payable
Debt
Gross debt	225,125,000	228,319,000
Premiums and discounts on debt instruments	2,373,000	2,786,000
Mortgage loan with a fixed interest of 7.66% per annum, due on December 1, 2015
Debt
Gross debt	27,537,000	28,262,000
Fixed interest rate (as a percent)	7.66%	7.66%
Period of amortization schedule	20 years	20 years
Amount of balance due on maturity	25,324,000	25,324,000
Mortgage loan with a fixed interest of 4.50% per annum, due on January 5, 2027
Debt
Gross debt	46,000,000	46,000,000
Fixed interest rate (as a percent)	4.50%	4.50%
Period of monthly interest only payments	10 years	10 years
Amount of balance due on maturity	42,008,000	42,008,000
Mortgage loan with a fixed interest of 5.56% per annum, due on July 1, 2015
Debt
Gross debt	12,590,000	12,737,000
Fixed interest rate (as a percent)	5.56%	5.56%
Period of amortization schedule	10 years	10 years
Amount of balance due on maturity	12,288,000	12,288,000
Mortgage loan with a fixed interest of 6.65% per annum, due on July 15, 2018
Debt
Gross debt	33,432,000	34,755,000
Fixed interest rate (as a percent)	6.65%	6.65%
Period of amortization schedule	25 years	25 years
Amount of balance due on maturity	21,136,000	21,136,000
Mortgage loan with a fixed interest of 5.06% per annum, due on September 1, 2015
Debt
Gross debt	34,161,000	34,583,000
Fixed interest rate (as a percent)	5.06%	5.06%
Amount of balance due on maturity	33,068,000	33,068,000
Mortgage loan with a fixed interest of 5.39% per annum, due on March 1, 2021
Debt
Gross debt	40,850,000	41,170,000
Fixed interest rate (as a percent)	5.39%	5.39%
Amount of balance due on maturity	35,695,000	35,695,000
Mortgage loan with a fixed interest of 5.18% per annum, due on June 5, 2021
Debt
Gross debt	30,555,000	30,812,000
Fixed interest rate (as a percent)	5.18%	5.18%
Amount of balance due on maturity	26,232,000	26,232,000
Secured borrowings - government guaranteed loans
Debt
Gross debt	37,210,000
Premiums and discounts on debt instruments	3,024,000
Total Debt	40,234,000
Secured borrowing principal on loans sold for a premium and excess spread - variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.99%
Debt
Gross debt	32,057,000
Weighted average coupon rate (as a percent)	3.99%
Secured borrowing principal on loans sold for a premium and excess spread - variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.99% | Prime rate
Debt
Variable rate basis	prime rate
Secured borrowing principal on loans sold for excess spread, variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.58%
Debt
Gross debt	5,153,000
Weighted average coupon rate (as a percent)	1.58%
Secured borrowing principal on loans sold for excess spread, variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.58% | Prime rate
Debt
Variable rate basis	prime rate
Other debt
Debt
Gross debt	335,770,000	164,000,000
Premiums and discounts on debt instruments	(2,199,000)
Junior subordinated notes with a variable interest rate which resets quarterly based on the 90 day LIBOR plus 3.25%, with quarterly interest payments due. Balance due at maturity on March 30, 2035
Debt
Gross debt	27,070,000
Junior subordinated notes with a variable interest rate which resets quarterly based on the 90 day LIBOR plus 3.25%, with quarterly interest payments due. Balance due at maturity on March 30, 2035 | 90-day LIBOR
Debt
Variable rate basis	90-day LIBOR
Interest rate margin (as a percent)	3.25%
Unsecured revolving line of credit with variable interest rate of prime less 50 basis points, with monthly interest payments due. Matures June 30, 2015
Debt
Gross debt	700,000
Unsecured revolving line of credit with variable interest rate of prime less 50 basis points, with monthly interest payments due. Matures June 30, 2015 | Prime rate
Debt
Variable rate basis	Prime
Reduction in variable rate (as a percent)	0.50%
Unsecured revolving lines of credit
Debt
Gross debt	$ 288,000,000	$ 164,000,000

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
ASSETS
Investments in real estate - net	$ 1,711,510	$ 1,682,165
Cash and cash equivalents	20,030	16,796
Restricted cash	7,208	6,672
Loans receivable - net	193,319
Accounts receivable and interest receivable - net	9,990	9,303
Deferred rent receivable and charges - net	89,959	87,606
Other intangible assets - net	24,014	22,282
Other assets	16,668	9,653
TOTAL ASSETS	2,072,698	1,834,477
LIABILITIES:
Debt	601,303	395,105
Accounts payable and accrued expenses	27,013	26,109
Intangible liabilities - net	9,225	8,800
Due to related parties	8,890	6,807
Other liabilities	27,366	21,173
Total liabilities	673,797	457,994
COMMITMENTS AND CONTINGENCIES (Note 14)
EQUITY:
Common stock, $0.001 and $0.05 par value; 200,000,000 and 20,000,000 shares authorized; 97,688,863 and 4,400,000 shares issued; and 97,581,598 and 4,400,000 shares outstanding at June 30, 2014 and December 31, 2013, respectively	98	220
Preferred stock, $0.01 par value, none and 65,028,571 shares outstanding at June 30, 2014 and December 31, 2013, respectively		650
Additional paid-in capital	1,823,675	1,772,821
Distributions in excess of earnings	(422,691)	(399,953)
Stockholders' equity before treasury stock	1,401,082	1,373,738
Less: Treasury stock, at cost, 107,265 shares outstanding at June 30, 2014	(4,901)
Total stockholders' equity	1,396,181	1,373,738
Noncontrolling interests	2,720	2,745
Total equity	1,398,901	1,376,483
TOTAL LIABILITIES AND EQUITY	$ 2,072,698	$ 1,834,477

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Deferred Rent Receivable and Charges
Deferred rent receivable	$ 50,971,000	$ 49,543,000
Deferred loan costs, gross	6,315,000	5,748,000
Deferred loan costs, accumulated amortization	4,272,000	3,620,000
Deferred leasing costs, gross	60,368,000	55,826,000
Deferred leasing costs, accumulated amortization	$ 23,423,000	$ 19,891,000

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CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $)	0 Months Ended			6 Months Ended
	Jun. 12, 2014	Apr. 28, 2014	Mar. 24, 2014	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF EQUITY
Dividends declared, common (in dollars per share)	$ 0.21875		$ 0.05	$ 0.26875
Dividends declared, preferred (in dollars per share)		$ 0.0302	$ 0.0403	$ 0.0705

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Loans receivable
Fair Value Inputs [Abstract]
Rate of prepayment (as a percent)	15.00%
SBA 7(a) loans, subject to secured borrowings
Fair Value Inputs [Abstract]
Rate of prepayment (as a percent)	15.00%
Minimum | Loans receivable
Fair Value Inputs [Abstract]
Discount rate used to estimate fair value (as a percent)	8.50%
Potential credit deterioration (as a percent)	0.00%
Maximum | Loans receivable
Fair Value Inputs [Abstract]
Discount rate used to estimate fair value (as a percent)	15.00%
Potential credit deterioration (as a percent)	1.50%
Carrying Amount
Assets:
Loans Receivable Subject to Credit Risk	$ 153,254
SBA 7(a) loans receivable, subject to secured borrowings	40,065
Liabilities:
Secured borrowings - government guaranteed loans	40,234
Unsecured revolving lines of credit and revolving facility	288,700	164,000
Term note	20,000
Junior subordinated notes	24,871
Mortgages payable	227,498	231,105
Estimated Fair Value | Level 3
Assets:
Loans Receivable Subject to Credit Risk	153,362
SBA 7(a) loans receivable, subject to secured borrowings	40,302
Liabilities:
Secured borrowings - government guaranteed loans	40,234
Unsecured revolving lines of credit and revolving facility	288,700	164,000
Term note	20,000
Junior subordinated notes	24,871
Mortgages payable	$ 234,292	$ 231,250
Mortgages payable | Minimum
Fair Value Inputs [Abstract]
Discount rate used to estimate fair value (as a percent)	4.10%	4.85%
Mortgages payable | Maximum
Fair Value Inputs [Abstract]
Discount rate used to estimate fair value (as a percent)	4.35%	5.00%
Junior subordinated notes
Fair Value Inputs [Abstract]
Discount rate used to estimate fair value (as a percent)	3.83%

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RELATED-PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2014

RELATED-PARTY TRANSACTIONS

Schedule of calculation of asset management fees payable to related party as a percentage of the daily average gross fair value of investments

Daily Average Gross Fair Value of CIM Urban' Investments
				Quarterly Fee Percentage
From Greater of		To and Including
(in thousands)
$	—	$	500,000		0.2500	%
	500,000		1,000,000		0.2375	%
	1,000,000		1,500,000		0.2250	%
	1,500,000		4,000,000		0.2125	%
	4,000,000		20,000,000		0.1000	%

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SEGMENT DISCLOSURE (Details 2) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment disclosure
Interest	$ (4,939,000)	$ (4,725,000)	$ (9,156,000)	$ (9,402,000)
General and administrative	(3,610,000)	(715,000)	(4,789,000)	(1,257,000)
Asset management fees and other fees to related parties	(6,338,000)	(5,431,000)	(12,075,000)	(10,840,000)
Transaction costs	(32,000)	(1,394,000)	(500,000)	(1,394,000)
Depreciation and amortization	(17,286,000)	(17,533,000)	(33,915,000)	(34,670,000)
Income before bargain purchase gain	8,814,000	4,808,000	15,121,000	10,630,000
Bargain purchase gain			4,918,000
INCOME BEFORE PROVISION FOR INCOME TAXES	8,814,000	4,808,000	20,039,000	10,630,000
Provision for income taxes	(300,000)		(308,000)
NET INCOME	8,514,000	4,808,000	19,731,000	10,630,000
Net income attributable to noncontrolling interests	(115,000)	(113,000)	(113,000)	(109,000)
NET INCOME ATTRIBUTABLE TO STOCKHOLDERS	8,399,000	4,695,000	19,618,000	10,521,000
Reportable segments
Segment disclosure
Total segment net operating income	38,965,000	34,234,000	72,457,000	67,635,000
Reconciliation
Segment disclosure
Interest	(4,304,000)	(4,725,000)	(8,259,000)	(9,402,000)
General and administrative	(2,191,000)	(343,000)	(2,587,000)	(699,000)
Asset management fees and other fees to related parties	(6,338,000)	(5,431,000)	(12,075,000)	(10,840,000)
Transaction costs	(32,000)	(1,394,000)	(500,000)	(1,394,000)
Depreciation and amortization	$ (17,286,000)	$ (17,533,000)	$ (33,915,000)	$ (34,670,000)

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FUTURE MINIMUM LEASE RENTALS

6 Months Ended

Jun. 30, 2014

FUTURE MINIMUM LEASE RENTALS

FUTURE MINIMUM LEASE RENTALS

15. FUTURE MINIMUM LEASE RENTALS

        Future minimum rental revenues under long-term operating leases at June 30, 2014, excluding tenant reimbursements of certain costs, are summarized as follows:

Years Ending December 31	Governmental Tenants		Other Tenants		Total
	(in thousands)
2014 (Six months ending December 31, 2014)	$	29,019	$	42,666	$	71,685
2015		46,321		85,064		131,385
2016		43,517		80,066		123,583
2017		40,356		75,065		115,421
2018		39,057		52,595		91,652
Thereafter		172,747		218,261		391,008
	$	371,017	$	553,717	$	924,734

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COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2014

COMMITMENTS AND CONTINGENCIES.

Schedule of future noncancelable minimum lease payments

Years Ending December 31	(in thousands)
2014 (Six months ending December 31, 2014)	$	345
2015		616
2016		743
2017		749
2018		607
Thereafter		129,031
	$	132,091

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SEGMENT DISCLOSURE

6 Months Ended

Jun. 30, 2014

SEGMENT DISCLOSURE

SEGMENT DISCLOSURE

17. SEGMENT DISCLOSURE

        In accordance with ASC Topic 280, Segment Reporting, our reportable segments consist of three types of commercial real estate properties, namely, office properties, hotel properties (which included an investment in a note receivable secured by a hotel property during the three and six months ended June 30, 2013) and multifamily properties, as well as a segment for our lending operations. Management internally evaluates the operating performance and financial results of the segments based on net operating income. We also have certain general and administrative level activities, including public company expenses, legal, accounting, tax preparation, that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in the notes to the audited consolidated financial statements of CIM Urban for the year ended December 31, 2013 included in our current report on Form 8-K/A filed on May 9, 2014.

        We evaluate the performance of our segments based on net operating income for our real estate segment, defined as: rental and other property income and tenant reimbursements less property and related expenses, and excludes other nonproperty income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, and transaction costs. For the lending segment, we define net operating income as interest income net of interest expense and expense for back-office operations and general overhead expenses such as administration and accounting. The net operating income of our reportable segments for the three and six months ended June 30, 2014 and 2013, is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014(1)		2013
	(in thousands)
Office properties:
Revenues	$	45,181	$	44,137	$	88,455	$	87,597
Property expenses:
Operating		17,933		16,192		35,586		32,494
General and administrative		76		254		392		354
Total property expenses		18,009		16,446		35,978		32,848
Segment net operating income—office		27,172		27,691		52,477		54,749
Hotel properties:
Revenues		14,798		10,624		29,137		20,571
Property expenses:
Operating		9,923		7,125		19,769		13,653
General and administrative		36		83		73		162
Total property expenses		9,959		7,208		19,842		13,815
Segment net operating income—hotel		4,839		3,416		9,295		6,756
Multifamily properties:
Revenues		5,208		5,077		10,192		9,978
Property expenses:
Operating		2,583		1,915		4,670		3,806
General and administrative		54		35		79		42
Total property expenses		2,637		1,950		4,749		3,848
Segment net operating income—multifamily		2,571		3,127		5,443		6,130
Lending:
Revenues		6,271		—		7,797		—
Lending expenses:
Interest expense		635		—		897		—
General and administrative		1,253		—		1,658		—
Total lending expenses		1,888		—		2,555		—
Segment net operating income—lending		4,383		—		5,242		—
Total segment net operating income	$	38,965	$	34,234	$	72,457	$	67,635

(1)

The lending segment operations are included for the period from the Acquisition Date to June 30, 2014.

        A reconciliation of segment net operating income to net income for the three and six months ended June 30, 2014 and 2013, is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(in thousands)
Total segment net operating income	$	38,965		$	34,234		$	72,457		$	67,635
Interest		(4,304	)		(4,725	)		(8,259	)		(9,402	)
General and administrative		(2,191	)		(343	)		(2,587	)		(699	)
Asset management fees and other fees to related parties		(6,338	)		(5,431	)		(12,075	)		(10,840	)
Transaction costs		(32	)		(1,394	)		(500	)		(1,394	)
Depreciation and amortization		(17,286	)		(17,533	)		(33,915	)		(34,670	)
		8,814			4,808			15,121			10,630
Bargain purchase gain		—			—			4,918			—
Income before provision for income taxes		8,814			4,808			20,039			10,630
Provision for income taxes		(300	)		—			(308	)		—
Net income		8,514			4,808			19,731			10,630
Net income attributable to noncontrolling interests		(115	)		(113	)		(113	)		(109	)
Net income attributable to stockholders	$	8,399		$	4,695		$	19,618		$	10,521

        The condensed assets for each of the segments as of June 30, 2014 and December 31, 2013, along with capital expenditures and originations for the six months ended June 30, 2014 and 2013, are as follows:

	June 30, 2014		December 31, 2013
	(in thousands)
Condensed assets:
Office properties	$	1,518,743	$	1,481,757
Hotel properties		174,898		174,263
Multifamily properties		171,283		173,985
Lending		204,933		—
Non-segment assets		2,841		4,472
Total assets	$	2,072,698	$	1,834,477

	Six Months Ended June 30,
	2014		2013
	(in thousands)
Capital expenditures(1):
Office properties	$	11,428	$	6,830
Hotel properties		721		1,504
Multifamily properties		429		827
Total capital expenditures		12,578		9,161
Originations		25,191		—
Total capital expenditures and originations	$	37,769	$	9,161

(1)

Represents additions and improvements to real estate investments, excluding acquisitions.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 19,731	$ 10,630
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred rent, and amortization of intangible assets, liabilities and lease inducements	(1,874)	(4,465)
Depreciation and amortization	33,915	34,670
Bargain purchase gain	(4,918)
Straight line rent, below-market ground lease and amortization of intangible assets	933	933
Amortization of deferred loan costs	652	299
Amortization of premiums and discounts on debt	(562)	(403)
Unrealized premium adjustments	782
Amortization and accretion on loans receivable, net	(1,837)
Bad debt expense	126	467
Deferred income taxes	55
Stock-based compensation	373
Loans funded, held for sale	(16,753)
Proceeds from sale of guaranteed loans	12,999
Principal collected on loans	2,071
Other operating activity	(300)
Changes in operating assets and liabilities:
Accounts receivable and interest receivable	(58)	(2,798)
Other assets	(2,151)	(1,739)
Accounts payable and accrued expenses	(6,287)	(2,422)
Deferred leasing costs	(4,542)	(1,839)
Other liabilities	2,232	(1,264)
Due to related parties	2,083	180
Net cash provided by operating activities	36,670	32,249
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to investments in real estate	(12,903)	(11,384)
Acquisition of real estate properties	(44,936)
Loans funded	(8,438)
Cash and cash equivalents acquired in connection with the merger	3,185
Principal collected on loans	25,348
Restricted cash	(536)	397
Other investing activity	160
Net cash used in investing activities	(38,120)	(10,987)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of mortgages payable	(3,194)	(4,264)
Proceeds from unsecured revolving lines of credit, revolving credit facility and term note	142,900	26,000
Payment of unsecured revolving line of credit, revolving credit facility and term note	(32,900)
Payment of principal on secured borrowings - government guaranteed loans	(2,071)
Proceeds from secured borrowings - government guaranteed loans	1,978
Payment of deferred loan costs	(447)	(8)
Payment of dividends	(26,256)
Payment of special dividend and dividend assumed in acquisition	(59,286)
Distributions pre-merger	(16,100)	(41,035)
Contributions		32
Contributions from noncontrolling interests	10
Proceeds from issuance of stock	201
Retirement of fractional shares of common shares	(3)
Noncontrolling interests' distributions	(148)	(150)
Net cash provided by (used in) financing activities	4,684	(19,425)
NET INCREASE IN CASH AND CASH EQUIVALENTS	3,234	1,837
CASH AND CASH EQUIVALENTS:
Beginning of period	16,796	31,514
End of period	20,030	33,351
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest	9,055	9,502
Federal income taxes paid	334
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Additions to investments in real estate included in accounts payable and accrued expenses	3,168	2,106
Additions to deferred loan costs included in accounts payable and accrued expenses	$ 120

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS
Common shares, par value (in dollars per share)	$ 0.001	$ 0.05
Common shares, authorized shares	200,000,000	20,000,000
Common shares, issued shares	97,688,863	4,400,000
Common shares, outstanding shares	97,581,598	4,400,000
Preferred shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares, outstanding shares	0	65,028,571
Treasury shares, outstanding shares	107,265

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EARNINGS PER SHARE (''EPS'')

6 Months Ended

Jun. 30, 2014

EARNINGS PER SHARE ("EPS")

EARNINGS PER SHARE ("EPS")

10. EARNINGS PER SHARE ("EPS")

        The computations of basic EPS are based on our weighted average shares outstanding. During the three and six months ended June 30, 2014, the weighted average shares outstanding were increased by 5,000 and 6,000 shares, respectively, to reflect the dilutive effect of stock options. Not included in the computation of diluted EPS were outstanding options to purchase 11,850 shares of Common Stock during the three and six months ended June 30, 2014, because the options' exercise prices were greater than the average market price of the shares.

        For purposes of calculating basic EPS for the three and six months ended June 30, 2013, the 65,028,571 shares of preferred stock issued in connection with the Merger have been assumed to have been converted into 91,039,999 shares of Common Stock. As of the Acquisition Date, a subsidiary of CIM Urban REIT had agreed to vote its 97.8% post-Merger ownership of CIM Commercial in favor of an increase in the number of authorized CIM Commercial shares of Common Stock to one billion, thereby satisfying the condition for the automatic conversion of these shares. The actual conversion of the shares of preferred stock to shares of Common Stock occurred on April 29, 2014.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 05, 2014
Document and Entity Information
Entity Registrant Name	CIM Commercial Trust corporation
Entity Central Index Key	0000908311
Document Type	10-Q
Document Period End Date	Jun. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		97,581,598
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2

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DIVIDENDS DECLARED

6 Months Ended

Jun. 30, 2014

DIVIDENDS DECLARED

DIVIDENDS DECLARED

11. DIVIDENDS DECLARED

        CIM Urban declared distributions to its partners of $16,100,000 prior to the Acquisition Date ($0.1685 per share of Common Stock, as converted). In addition, dividends of $59,286,000 ($27.975 per share of Common Stock) were paid to the PMC Commercial stockholders, which includes the $27.50 per share of Common Stock special dividend plus the $0.475 pro rata portion of PMC Commercial's regular quarterly cash dividend.

        On March 24, 2014, we declared a common share dividend of $0.05 per share of Common Stock and a preferred dividend of $0.0403 per share of preferred stock ($0.0285 per share of Common Stock as converted) which were paid on March 28, 2014.

        On April 28, 2014, we declared a dividend in the aggregate amount of $1,964,000 to the preferred stockholders ($0.0302 per share of preferred stock and $0.0215 per share of Common Stock, as converted) in connection with the conversion of shares of preferred stock to shares of Common Stock, which was paid on June 27, 2014.

        On June 12, 2014, we declared a common share dividend of $0.21875 per share of Common Stock which was paid on June 27, 2014.

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
REVENUES:
Rental and other property income	$ 60,804	$ 55,968	$ 120,626	$ 111,135
Expense reimbursements	2,646	2,597	4,997	5,047
Interest and other income	8,008	1,273	9,958	1,964
REVENUES	71,458	59,838	135,581	118,146
EXPENSES:
Rental and other property operating	30,439	25,232	60,025	49,953
Asset management fees and other fees to related parties	6,338	5,431	12,075	10,840
Interest	4,939	4,725	9,156	9,402
General and administrative	3,610	715	4,789	1,257
Transaction costs	32	1,394	500	1,394
Depreciation and amortization	17,286	17,533	33,915	34,670
EXPENSES	62,644	55,030	120,460	107,516
Bargain purchase gain (Note 2)			4,918
INCOME BEFORE PROVISION FOR INCOME TAXES	8,814	4,808	20,039	10,630
Provision for income taxes	(300)		(308)
NET INCOME	8,514	4,808	19,731	10,630
Net income attributable to noncontrolling interests	(115)	(113)	(113)	(109)
NET INCOME ATTRIBUTABLE TO STOCKHOLDERS	8,399	4,695	19,618	10,521
COMPREHENSIVE INCOME	$ 8,399	$ 4,695	$ 19,618	$ 10,521
NET INCOME PER SHARE:
Basic (in dollars per share)	$ 0.09	$ 0.05	$ 0.20	$ 0.11
Diluted (in dollars per share)	$ 0.09	$ 0.05	$ 0.20	$ 0.11
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	97,571	95,440	96,758	95,440
Diluted (in shares)	97,576	95,440	96,764	95,440

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INVESTMENTS IN REAL ESTATE

6 Months Ended

Jun. 30, 2014

INVESTMENTS IN REAL ESTATE

INVESTMENTS IN REAL ESTATE

5. INVESTMENTS IN REAL ESTATE

        Investments in real estate consist of the following:

	June 30, 2014			December 31, 2013
	(in thousands)
Land	$	347,693		$	331,060
Land improvements		27,884			27,536
Buildings and improvements		1,486,103			1,454,854
Furniture, fixtures, and equipment		23,332			23,051
Tenant improvements		191,451			183,915
Work in progress		12,137			9,987
		2,088,600			2,030,403
Accumulated depreciation		(377,090	)		(348,238	)
Net investments in real estate	$	1,711,510		$	1,682,165

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ACQUISITIONS

6 Months Ended

Jun. 30, 2014

ACQUISITIONS

ACQUISITIONS

4. ACQUISITIONS

        The fair value of real estate acquired is recorded to (1) the acquired tangible assets, consisting of land; land improvements; building and improvements; furniture, fixtures, and equipment; tenant improvements; and (2) identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases and tenant relationships, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. Above-market ground leases are recorded based on the respective fair value of the ground leases.

        During the six months ended June 30, 2014, we acquired a 100% fee-simple interest in an office building located in Los Angeles from an unrelated third party. Built in 1984, the building has approximately 143,000 square feet of rentable space and is located in the Mid-Wilshire submarket of Los Angeles. The acquisition was funded with proceeds from a drawdown on one of CIM Urban's unsecured credit facilities.

Property	Asset Type	Date of Acquisition		Number of Buildings		Rentable Square Feet		Purchase Price
								(in thousands)
4750 Wilshire Blvd., Los Angeles, CA	Office		April 18, 2014		1		143,000	$	44,936

        The results of the operations of the property acquired have been included in the consolidated statements of operations from the date of acquisition. The fair value of the assets acquired and liabilities assumed for the above-noted acquisition during the six months ended June 30, 2014 are as follows:

	2014 Acquisition
	(in thousands)
Land	$	16,633
Land improvements		348
Building and improvements		27,947
Tenant improvements		691
Acquired in-place leases(1)		1,087
Acquired below-market leases(2)		(1,770	)
Net assets acquired	$	44,936

(1)

In-place leases have a weighted average amortization period of 5.0 years.

(2)

Below-market leases have a weighted average amortization period of 5.0 years.

        Acquisition related expenses of $32,000 associated with the acquisition of real estate in 2014 were expensed as incurred during the six months ended June 30, 2014, respectively. No acquisitions of real estate were made during the six months ended June 30, 2013.

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CONCENTRATIONS

6 Months Ended

Jun. 30, 2014

CONCENTRATIONS

CONCENTRATIONS

16. CONCENTRATIONS

        Tenant Revenue Concentrations—Rental revenues from the U.S. General Services Administration and other government agencies (collectively, "Governmental Tenants"), which primarily occupy properties located in Washington, D.C., accounted for approximately 24.5%, and 27.4% of our rental and other property income for the three months ended June 30, 2014 and 2013, respectively and 25.1%, and 27.5% for the six months ended June 30, 2014 and 2013, respectively. At June 30, 2014, and December 31, 2013, $6,145,000 and $5,596,000, respectively, is due from Governmental Tenants (see Note 15).

        Geographical Concentrations of Investments in Real Estate—As of June 30, 2014, and December 31, 2013, we owned 20 and 19 office properties, respectively, five multifamily properties, and three hotel properties, located in four states and Washington, D.C.

        Our revenues concentration from properties for the periods ended June 30, 2014 and 2013, are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
California		60.2	%		57.3	%		60.3	%		57.3	%
North Carolina		6.1			6.6			5.6			6.5
Texas		7.7			8.2			7.7			8.1
New York		2.1			2.1			2.1			2.2
Washington, D.C.		23.9			25.8			24.3			25.9
		100.0	%		100.0	%		100.0	%		100.0	%

        Our real estate investments concentration from properties as of June 30, 2014, and December 31, 2013, are as follows:

	June 30, 2014			December 31, 2013
California		51.7	%		50.5	%
North Carolina		5.5			5.6
Texas		7.5			7.7
New York		3.6			3.7
Washington, D.C.		31.7			32.5
		100.0	%		100.0	%

        Concentration of loans receivable—Substantially all of our interest income is generated from loans collateralized by hospitality properties. At June 30, 2014, our loans receivable were 94.4% concentrated in the hospitality industry. In addition, at June 30, 2014, 12.7% of our loans were collateralized by properties in Texas and 10.5% of our loans were collateralized by properties in Virginia. No other state had a concentration of 10.0% or greater of our loans receivable at June 30, 2014.

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FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2014

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

        A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability. The hierarchy for inputs used in measuring fair value is as follows:

• Level 1 Inputs—Quoted prices in active markets for identical assets or liabilities

  Level 2 Inputs—Observable inputs other than quoted prices in active markets for identical assets and liabilities

  Level 3 Inputs—Unobservable inputs

        In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

        The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on our consolidated balance sheets were as follows:

	June 30, 2014				December 31, 2013
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Level
	(in thousands)
Assets:
Loans Receivable Subject to Credit Risk	$	153,254	$	153,362	$	—	$	—		3
SBA 7(a) loans receivable, subject to secured borrowings		40,065		40,302		—		—		3
Liabilities:
Secured borrowings—government guaranteed loans		40,234		40,234		—		—		3
Unsecured revolving lines of credit and revolving facility		288,700		288,700		164,000		164,000		3
Term note		20,000		20,000		—		—		3
Junior subordinated notes		24,871		24,871		—		—		3
Mortgages payable		227,498		234,292		231,105		231,250		3

        Management's estimation of the fair value of our financial instruments is based on a Level 3 valuation in the fair value hierarchy established for disclosure of how a company values its financial instruments. In general, quoted market prices from active markets for the identical financial instrument (Level 1 inputs), if available, should be used to value a financial instrument. If quoted prices are not available for the identical financial instrument, then a determination should be made if Level 2 inputs are available. Level 2 inputs include quoted prices for similar financial instruments in active markets for identical or similar financial instruments in markets that are not active (i.e., markets in which there are few transactions for the financial instruments, the prices are not current, price quotations vary substantially, or in which little information is released publicly). There is limited reliable market information for our financial instruments and we utilize other methodologies for valuation purposes since there are no Level 1 or Level 2 determinations available. Accordingly, Level 3 inputs are used to measure fair value.

        In general, estimates of fair value may differ from the carrying amounts of the financial assets and liabilities primarily as a result of the effects of discounting future cash flows. Considerable judgment is required to interpret market data and develop estimates of fair value. Accordingly, the estimates presented may not be indicative of the amounts we could realize in a current market exchange.

        Loans Receivable Subject to Credit Risk—Loans receivable were initially recorded at estimated fair value at the Acquisition Date. Loans receivable originated subsequent to the Acquisition Date are recorded at cost upon origination and adjusted by net loan origination fees and discounts. In order to determine the estimated fair value of our loans receivable, we use a present value technique for the anticipated future cash flows using certain assumptions including discount rates ranging from 8.50% to 15.00%, prepayment speeds of 15.00% and potential credit deterioration ranging from 0% to 1.50%. Significant increases (decreases) in any of these inputs in isolation would result in significantly lower (higher) fair value measurements. In the absence of a readily ascertainable market value, the estimated value of our loans receivable will differ from the values that would be placed on the portfolio if a ready market for the loans receivable existed.

        SBA 7(a) loans receivable, subject to secured borrowings—Represents the government guaranteed portion of loans which were sold with the proceeds received from the sale reflected as a liability on our consolidated balance sheet. There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal. In order to determine the estimated fair value of these loans receivable, we use a present value technique for the anticipated future cash flows taking into consideration the lack of credit risk using a prepayment rate of 15.00%.

        Junior subordinated notes—The fair value of the junior subordinated notes is estimated based on a current interest rates available for debt instruments with similar terms. Discounted cash flow analysis is generally used to estimate the fair value of our junior subordinated notes. The rate used was 3.83% at June 30, 2014.

        Secured borrowings—government guaranteed loans—The fair value of secured borrowings—government guaranteed loans approximates current market interest rates. Includes the unamortized deferred cash premiums collected on the sale of the government guaranteed portions of the related loans.

        Revolving credit facility, unsecured revolving lines of credit and term note—The carrying amount is a reasonable estimation of fair value as the interest rate on the revolving credit facility and revolving lines of credit are variable and are at a current market interest rate. In addition, the term note and revolving credit facility are short-term.

        Mortgage notes payable—The fair values of mortgage notes are estimated based on current interest rates available for debt instruments with similar terms. The fair value of our mortgages payable is sensitive to fluctuations in interest rates. Discounted cash flow analysis is generally used to estimate the fair value of our mortgages payable, using rates ranging from 4.10% to 4.35% at June 30, 2014 and 4.85% to 5.00% at December 31, 2013.

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DEBT

6 Months Ended

Jun. 30, 2014

DEBT

DEBT

8. DEBT

        Information on our debt is as follows:

	June 30, 2014			December 31, 2013
	(in thousands)
Mortgage loan with a fixed interest rate of 7.66% per annum, with monthly payments of principal and interest. The loan has a 20-year amortization schedule with a $25,324,000 balance due on December 1, 2015. The loan is nonrecourse.	$	27,537		$	28,262
Mortgage loan with a fixed interest rate of 4.50% per annum, with monthly payments of interest only for 10 years, and payments of interest and principal starting in February 2022. The loan has a $42,008,000 balance due on January 5, 2027. The loan is nonrecourse.		46,000			46,000
Mortgage loan with a fixed interest rate of 5.56% per annum, with monthly payments of principal and interest. The loan has a 10-year amortization schedule with a $12,288,000 balance due on July 1, 2015. The loan is nonrecourse.		12,590			12,737
Mortgage loan with a fixed interest rate of 6.65% per annum, with monthly payments of principal and interest. The loan has a 25-year amortization schedule with a $21,136,000 balance due on July 15, 2018. The loan is nonrecourse.		33,432			34,755
Mortgage loan with a fixed interest rate of 5.06% per annum, with monthly payments of principal and interest, and a balance of $33,068,000 due on September 1, 2015. The loan is nonrecourse.		34,161			34,583
Mortgage loans with a fixed interest rate of 5.39% per annum, with monthly payments of principal and interest, and a balance of $35,695,000 due on March 1, 2021. The loans are nonrecourse.		40,850			41,170
Mortgage loan with a fixed interest rate of 5.18% per annum, with monthly payments of principal and interest, and a balance of $26,232,000 due on June 5, 2021. The loan is nonrecourse.		30,555			30,812
		225,125			228,319
Premiums and discounts on assumed mortgages		2,373			2,786
Total Mortgages Payable		227,498			231,105
Secured borrowing principal on loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.99%		32,057			—
Secured borrowing principal on loans sold for excess spread, variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.58%		5,153			—
		37,210			—
Premiums on loans sold for a premium and excess spread		3,024			—
Total Secured borrowings—government guaranteed loans		40,234			—
Junior subordinated notes with a variable interest rate which resets quarterly based on the 90-day LIBOR plus 3.25%, with quarterly interest payments due. Balance due at maturity on March 30, 2035.		27,070			—
Term note with a fixed interest rate of 2.74%, principal and interest due at maturity on September 10, 2014.		20,000			—
Unsecured revolving line of credit with variable interest rate of prime less 50 basis points, with monthly interest payments due. Matures June 30, 2015.		700			—
Unsecured revolving lines of credit		288,000			164,000
		335,770			164,000
Discount on junior subordinated notes		(2,199	)		—
Total Other		333,571			164,000
Total Debt	$	601,303		$	395,105

        The mortgages payable are secured by deeds of trust on certain of the properties and assignments of rents.

        Secured borrowings represent sold SBA 7(a) Program loans which are treated as secured borrowings since the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Transfers and Servicing. Principal payments are dependent upon cash flows received from the underlying loans. No payment is due unless payments are received from the borrowers on the underlying loans.

        CIM Commercial's $20,000,000 term note and $25,000,000 unsecured revolving line of credit have covenants including a covenant requiring an asset coverage test (eligible loans receivable) for balances outstanding under its revolving credit facility of 3.00 times. To the extent the term note is repaid, credit availability under the revolving credit facility will increase to $40,000,000. As of June 30, 2014, $24,300,000 was available for future borrowing.

        In February 2012, CIM Urban entered into an unsecured revolving line of credit with a bank syndicate, which allows for maximum borrowings of $100,000,000. Borrowings under the line of credit are limited by certain borrowing base calculations. Outstanding advances under the line of credit bore interest at the base rate, as defined, plus 0.75% to 1.50% or LIBOR plus 1.75% to 2.50%, depending on the maximum consolidated leverage ratio, as defined, until August 2013. In August 2013, the unsecured revolving line was amended, and outstanding advances under the line bear interest at the base rate, as defined, plus 0.25% to 0.85% or LIBOR plus 1.25% to 1.85%, depending on the maximum consolidated leverage ratio, as defined. The line of credit is also subject to an unused commitment fee of 0.25% or 0.35% depending on the amount of aggregate unused commitments. The line of credit matures in February 2016, with a one-year extension option under certain conditions. As of both June 30, 2014, and December 31, 2013, $100,000,000 was outstanding under the line of credit, and $0, was available for future borrowings.

        In August 2013, CIM Urban entered into another unsecured revolving credit facility with a syndicate of banks. The credit facility provides an additional $125,000,000 of borrowing capacity that was increased to $150,000,000. CIM Urban amended the facility in April 2014 to further increase the maximum aggregate borrowing capacity under the revolving credit facility to $200,000,000. Borrowings under the revolving credit facility are limited by certain borrowing base calculations. Outstanding advances under the revolving credit facility bear interest at the base rate, as defined, plus 0.25% to 0.85% or LIBOR plus 1.25% to 1.85%, depending on the maximum consolidated leverage ratio, as defined. The revolving credit facility is also subject to an unused commitment fee of 0.25% or 0.35% depending on the amount of aggregate unused commitments. The revolving credit facility originally matured in February 2014, and was recently extended to October 10, 2014. As of June 30, 2014, and December 31, 2013, $188,000,000 and $64,000,000, respectively, was outstanding under the revolving credit facility, and $12,000,000 and $61,000,000, respectively, was available for future borrowings.

        At June 30, 2014 and December 31, 2013, CIM Commercial and CIM Urban were either in compliance with all of their respective financial covenants or had obtained waivers from the relevant lenders with respect to such compliance.

        We are currently in negotiations with two banks, as joint lead arrangers, to finalize an unsecured term loan and a revolving credit facility of $550,000,000, with an accordion feature which would increase the maximum aggregate facilities to $850,000,000. We intend to use the proceeds of these new facilities to repay all of our outstanding term and revolving credit facilities. We expect to close the new term loan and revolving credit facilities by the end of the third quarter of 2014. However, there can be no assurance that our negotiation of the new term and revolving credit facilities will be successful or that the closing of these new facilities will occur in the time frame described above. In addition, if the new term and revolving credit facilities fail to close for any reason or closing is delayed substantially beyond the time frame described above, there can be no assurances we will be able to successfully negotiate an extension of our existing credit facilities or any increased maximum availability. However, we believe other financing sources would be available to us.

        At June 30, 2014, and December 31, 2013, accrued interest and unused commitment fee payable of $1,155,000 and $1,017,000, respectively, is included in accounts payable and accrued expenses.

        Future principal payments on our debt (face value) at June 30, 2014 are as follows:

Years Ending December 31,	Secured Borrowings Principal(1)		Mortgages Payable		All Other Principal(2)		Total
	(in thousands)
2014 (Six months ending December 31, 2014)	$	575	$	3,278	$	208,000	$	211,853
2015		1,180		77,055		700		78,935
2016		1,220		4,354		100,000		105,574
2017		1,263		4,642		—		5,905
2018		1,309		24,300		—		25,609
Thereafter		31,663		111,496		27,070		170,229
	$	37,210	$	225,125	$	335,770	$	598,105

(1)

Principal payments are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled principal payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and/or loan liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans.

(2)

Represents the revolving credit facility, term note, junior subordinated notes, and unsecured revolving lines of credit.

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RELATED-PARTY TRANSACTIONS (Details) (USD $)			3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended																	3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended				0 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 Third-party management companies	Jun. 30, 2013 Third-party management companies	Jun. 30, 2014 Third-party management companies	Jun. 30, 2013 Third-party management companies	Jun. 30, 2014 Management Company Asset management fees	Jun. 30, 2013 Management Company Asset management fees	Jun. 30, 2014 Management Company Asset management fees	Jun. 30, 2013 Management Company Asset management fees	Dec. 31, 2013 Management Company Asset management fees	Jun. 30, 2014 Management Company Property management fees	Jun. 30, 2013 Management Company Property management fees	Jun. 30, 2014 Management Company Property management fees	Jun. 30, 2013 Management Company Property management fees	Jun. 30, 2014 Management Company 0 - 500,000	Jun. 30, 2014 Management Company 0 - 500,000 Minimum	Jun. 30, 2014 Management Company 0 - 500,000 Maximum	Jun. 30, 2014 Management Company 500,000 - 1,000,000	Jun. 30, 2014 Management Company 500,000 - 1,000,000 Minimum	Jun. 30, 2014 Management Company 500,000 - 1,000,000 Maximum	Jun. 30, 2014 Management Company 1,000,000 - 1,500,000	Jun. 30, 2014 Management Company 1,000,000 - 1,500,000 Minimum	Jun. 30, 2014 Management Company 1,000,000 - 1,500,000 Maximum	Jun. 30, 2014 Management Company 1,500,000 - 4,000,000	Jun. 30, 2014 Management Company 1,500,000 - 4,000,000 Minimum	Jun. 30, 2014 Management Company 1,500,000 - 4,000,000 Maximum	Jun. 30, 2014 Management Company 4,000,000 - 20,000,000	Jun. 30, 2014 Management Company 4,000,000 - 20,000,000 Minimum	Jun. 30, 2014 Management Company 4,000,000 - 20,000,000 Maximum	Jun. 30, 2014 CIM Management Entities	Jun. 30, 2013 CIM Management Entities	Jun. 30, 2014 CIM Management Entities	Jun. 30, 2013 CIM Management Entities	Dec. 31, 2013 CIM Management Entities	Jun. 30, 2014 CIM Management Entities On-site personnel	Jun. 30, 2013 CIM Management Entities On-site personnel	Jun. 30, 2014 CIM Management Entities On-site personnel	Jun. 30, 2013 CIM Management Entities On-site personnel	Jun. 30, 2014 CIM Management Entities Development management fees	Jun. 30, 2013 CIM Management Entities Development management fees	Jun. 30, 2014 CIM Management Entities Development management fees	Jun. 30, 2013 CIM Management Entities Development management fees	Jun. 30, 2014 CIM Management Entities and related parties	Dec. 31, 2013 CIM Management Entities and related parties	Mar. 11, 2014 Manager Master Services Agreement	Jun. 30, 2014 Manager Master Services Agreement	Jun. 30, 2014 Manager Master Services Agreement	Jun. 30, 2014 Manager Base Service Fee	Jun. 30, 2014 Manager Base Service Fee
Related-party transactions
Daily average gross fair value of investments																	$ 0	$ 500,000		$ 500,000	$ 1,000,000		$ 1,000,000	$ 1,500,000		$ 1,500,000	$ 4,000,000		$ 4,000,000	$ 20,000,000
Fee percentage																0.25%			0.2375%			0.225%			0.2125%			0.10%
Fees							5,798,000	5,431,000	11,479,000	10,840,000		1,272,000	1,215,000	2,531,000	2,362,000																					1,749,000	955,000	3,793,000	2,344,000	157,000	158,000	244,000	294,000						250,000	306,000
Due (from) to related parties	8,890,000	6,807,000					5,898,000		5,898,000		5,426,000																				2,408,000		2,408,000		1,445,000									(12,000)	(64,000)		596,000	596,000
Leasing commissions																															839,000	11,000	1,351,000	297,000
Management fee incurred related to the rental properties			419,000	344,000	811,000	672,000
Fees payable per year under agreement																																														1,000,000
Compensation expensed for performing other services																																															$ 290,000	$ 290,000

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LOANS RECEIVABLE

6 Months Ended

Jun. 30, 2014

LOANS RECEIVABLE

LOANS RECEIVABLE

6. LOANS RECEIVABLE

        Loans receivable consist of the following:

	June 30, 2014
	(in thousands)
Commercial mortgage loans	$	120,153
SBA 7(a) loans, subject to secured borrowings		40,039
SBA 7(a) loans		32,998
Loans receivable		193,190
Deferred capitalized costs		129
Net loans receivable	$	193,319

        Commercial mortgage loans—Represents loans to small businesses primarily collateralized by first liens on the real estate of the related business.

        SBA 7(a) loans, subject to secured borrowings—Represents the government guaranteed portion of loans which were sold with the proceeds received from the sale reflected as secured borrowings—government guaranteed loans (included in debt on our consolidated balance sheet). There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal.

        SBA 7(a) loans—Represents the non-government guaranteed retained portion of loans originated under the SBA 7(a) Program and the government guaranteed portion of loans that have not yet been fully funded or sold.

        Aging—The following tables represent an aging of our "Loans Receivable Subject to Credit Risk" (loans receivable less SBA 7(a) loans, subject to secured borrowings as the SBA has guaranteed payment of the principal).

June 30, 2014	Commercial Mortgage Loans				SBA 7(a) Loans				Totals
	(dollars in thousands)
Current	$	119,326	99.3	%	$	32,836	99.5	%	$	152,162	99.4	%
Between 29 and 59 days delinquent		—	—			162	0.5			162	0.1
Between 60 and 89 days delinquent		—	—			—	—			—	—
Over 89 days delinquent		827	0.7			—	—			827	0.5
	$	120,153	100.0	%	$	32,998	100.0	%	$	153,151	100.0	%

        Loan Portfolio Classification—Management closely monitors our loans which require evaluation for loan loss reserves based on specific identification metrics which are classified into three categories: Doubtful, Substandard and Other Assets Especially Mentioned ("OAEM"). Loans classified as Doubtful are generally loans which are not complying with their contractual terms, the collection of the balance of the principal is considered impaired and on which the fair value of the collateral is less than the remaining unamortized principal balance. These loans are typically placed on non-accrual status and are generally in the foreclosure process. Loans classified as Substandard are generally those loans that are either not complying or had previously not complied with their contractual terms and have other credit weaknesses which may make payment default or principal exposure likely but not yet certain. Loans classified as OAEM are generally loans for which the credit quality of the borrowers has temporarily deteriorated. Typically, the borrowers are current on their payments; however, they may be delinquent on their property taxes, insurance, or franchise fees or may be under agreements which provide for interest only payments during a short period of time.

        Management has classified our Loans Receivable Subject to Credit Risk as follows:

June 30, 2014	Commercial Mortgage Loans				SBA 7(a) Loans				Totals
	(dollars in thousands)
Satisfactory	$	116,527	97.0	%	$	32,368	98.1	%	$	148,895	97.2	%
OAEM		1,947	1.6			—	—			1,947	1.3
Substandard		849	0.7			539	1.6			1,388	0.9
Doubtful		830	0.7			91	0.3			921	0.6
	$	120,153	100.0	%	$	32,998	100.0	%	$	153,151	100.0	%

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OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2014

OTHER INTANGIBLE ASSETS

OTHER INTANGIBLE ASSETS

7. OTHER INTANGIBLE ASSETS

        A schedule of the intangible assets and liabilities and related accumulated amortization and accretion as of June 30, 2014, and December 31, 2013, is as follows:

	Assets																				Liabilities
June 30, 2014	Acquired Above-Market Leases			Acquired In-Place Leases			Tax Abatement			Advance Bookings			Franchise Affiliation Fee			Acquired Below-Market Ground Lease			Trade-Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	8,017		$	80,732		$	4,273		$	8,329		$	3,936		$	11,685		$	2,957	$	(63,093	)
Accumulated amortization		(7,487	)		(74,662	)		(1,496	)		(8,273	)		(2,785	)		(1,212	)		—		53,868
	$	530		$	6,070		$	2,777		$	56		$	1,151		$	10,473		$	2,957	$	(9,225	)
Average useful life (in years)		4			6			8			3			10			84			Indefinite		6

	Assets																		Liabilities
December 31, 2013	Acquired Above-Market Leases			Acquired In-Place Leases			Tax Abatement			Advance Bookings			Franchise Affiliation Fee			Acquired Below-Market Ground Lease			Acquired Below-Market Leases
	(in thousands)
Gross balance	$	8,017		$	79,645		$	4,273		$	8,329		$	3,936		$	11,685		$	(61,323	)
Accumulated amortization		(7,052	)		(73,463	)		(1,220	)		(8,139	)		(2,587	)		(1,142	)		52,523
	$	965		$	6,182		$	3,053		$	190		$	1,349		$	10,543		$	(8,800	)
Average useful life (in years)		4			5			8			3			10			84			6

        The amortization of the above-market leases which decreased rental and other property income were $98,000 and $196,000 for the three months ended June 30, 2014 and 2013, respectively and $435,000 and $396,000 for the six months ended June 30, 2014 and 2013, respectively. The amortization of the below-market leases included in rental and other property income were $697,000 and $796,000 for the three months ended June 30, 2014 and 2013, respectively and $1,345,000 and $1,592,000 for the six months ended June 30, 2014 and 2013, respectively. The amortization of in-place leases included in depreciation and amortization expense was $587,000 and $927,000 for the three months ended June 30, 2014 and 2013, respectively and $1,199,000 and $1,874,000 for the six months ended June 30, 2014 and 2013, respectively. Included in depreciation and amortization expense are franchise affiliation fee amortization of $99,000 for each of the three months ended June 30, 2014 and 2013, and $198,000 for each of the six months ended June 30, 2014 and 2013, respectively. The amortization of advance bookings included in depreciation and amortization expense was $67,000 and $0 for the three months ended June 30, 2014 and 2013, respectively and $134,000 and $0 for the six months ended June 30, 2014 and 2013, respectively. Tax abatement amortization of $138,000 for each of the three months ended June 30, 2014 and 2013 and $276,000 for each of the six months ended June 30, 2014 and 2013 are included in rental and other property operating expenses. Amortization of below-market ground lease obligation of $35,000 for each of the three months ended June 30, 2014 and 2013 and $70,000 for each of the six months ended June 30, 2014 and 2013 are included in rental and other property operating expenses.

        A schedule of future amortization and accretion of acquisition related intangible assets and liabilities as of June 30, 2014, is as follows:

	Assets												Liabilities
Years Ending December 31,	Acquired Above-Market Leases		Acquired In-Place Leases		Tax Abatement		Advance Bookings		Franchise Affiliation Fee		Acquired Below-Market Ground Lease		Acquired Below-Market Leases
	(in thousands)
2014 (Six months ending December 31, 2014)	$	167	$	1,084	$	275	$	56	$	196	$	70	$	(1,246	)
2015		241		1,606		551		—		394		140		(2,435	)
2016		88		1,111		551		—		394		140		(2,368	)
2017		26		665		551		—		167		140		(2,261	)
2018		8		415		551		—		—		140		(824	)
Thereafter		—		1,189		298		—		—		9,843		(91	)
	$	530	$	6,070	$	2,777	$	56	$	1,151	$	10,473	$	(9,225	)

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STOCK BASED COMPENSATION PLANS

6 Months Ended

Jun. 30, 2014

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS

9. STOCK-BASED COMPENSATION PLANS

        As of the Acquisition Date, we had 19,700 options outstanding under stock-based compensation plans. The options are fully vested, and were repriced as of the Acquisition Date. Of these options, 14,500 were exercised during the six months ended June 30, 2014 for proceeds of approximately $201,000.

        We granted 11,850 options on June 12, 2014 at an exercise price of $23.16 (the closing price of our Common Stock on such date). The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:

Assumptions
Expected term (years)	3.0
Risk-free interest rate	0.94	%
Expected dividend yield	3.78	%
Expected volatility	9.37	%
Expected forfeiture rate	1.0	%

        The expected term of the options granted represents the period of time that the options are expected to be outstanding and was based on historical data. The risk-free rate was based on the three-year U.S. Treasury rate corresponding to the expected term of the options. We used historical information to determine our expected volatility and forfeiture rate. We recorded compensation expense of $8,000 during the three and six months ended June 30, 2014 related to this option grant.

        On April 28, 2014, our stockholders approved the First Amendment to the PMC Commercial Trust 2005 Equity Incentive Plan (the "Plan Amendment") to increase the aggregate number of shares of Common Stock thereunder from 100,000 to 300,000 shares and increase the annual limitation on restricted Common Stock grants to all independent directors in the aggregate to 100,000 restricted shares of Common Stock and to each executive officer to no more than 4,000 restricted shares of Common Stock during any fiscal year. On March 11, 2014, we granted Common Stock awards of 2,000 restricted shares of Common Stock to each of the independent members of the board of directors (the "Board of Directors") (6,000 in aggregate) which awards were effective upon the receipt of stockholder approval of the Plan Amendment. The shares of Common Stock vest based on a year of continuous service. Compensation expense related to these restricted shares of Common Stock is being recognized over the vesting period. We recorded compensation expense of $31,000 during the three and six months ended June 30, 2014 related to these restricted shares of Common Stock.

        We issued an aggregate of 2,000 restricted shares of Common Stock to two of our executive officers on May 6, 2014. The restricted shares of Common Stock vest based on two years of continuous service with one-third of the shares of Common Stock vesting immediately upon issuance and one-third vesting at the end of each of the next two years. Compensation expense related to these restricted shares of Common Stock is being recognized over the vesting period. We recognized compensation expense of $19,000 during the three and six months ended June 30, 2014 related to these restricted shares of Common Stock.

        In accordance with the employment agreements of two of our executive officers, to the extent the executive is employed by us on January 1, 2016 and such executive is not entitled to any disability, death or severance payments, the executive would be awarded restricted shares of Common Stock as a retention bonus which would vest immediately upon grant. In aggregate, the executive officers would receive 105,000 Common Stock awards. We recorded compensation expense of $315,000 during the three and six months ended June 30, 2014 related to these Common Stock awards.

        As of June 30, 2014, there was $2,017,000 of total unrecognized compensation expense related to shares of Common Stock which will be recognized over the next two years.

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SEGMENT DISCLOSURE (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014 item	Jun. 30, 2013
Segment disclosure
Number of types of commercial real estate properties			3
Revenues	$ 71,458	$ 59,838	$ 135,581	$ 118,146
Property/Lending expenses:
Interest expense	4,939	4,725	9,156	9,402
General and administrative	3,610	715	4,789	1,257
EXPENSES	62,644	55,030	120,460	107,516
Reportable segments
Property/Lending expenses:
Total segment net operating income	38,965	34,234	72,457	67,635
Reportable segments | Office properties
Segment disclosure
Revenues	45,181	44,137	88,455	87,597
Property/Lending expenses:
Operating	17,933	16,192	35,586	32,494
General and administrative	76	254	392	354
EXPENSES	18,009	16,446	35,978	32,848
Total segment net operating income	27,172	27,691	52,477	54,749
Reportable segments | Hotel properties
Segment disclosure
Revenues	14,798	10,624	29,137	20,571
Property/Lending expenses:
Operating	9,923	7,125	19,769	13,653
General and administrative	36	83	73	162
EXPENSES	9,959	7,208	19,842	13,815
Total segment net operating income	4,839	3,416	9,295	6,756
Reportable segments | Multi-family properties
Segment disclosure
Revenues	5,208	5,077	10,192	9,978
Property/Lending expenses:
Operating	2,583	1,915	4,670	3,806
General and administrative	54	35	79	42
EXPENSES	2,637	1,950	4,749	3,848
Total segment net operating income	2,571	3,127	5,443	6,130
Reportable segments | Lending division
Segment disclosure
Revenues	6,271		7,797
Property/Lending expenses:
Interest expense	635		897
General and administrative	1,253		1,658
EXPENSES	1,888		2,555
Total segment net operating income	$ 4,383		$ 5,242

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SEGMENT DISCLOSURE (Details 3) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Segment disclosure
Total assets	$ 2,072,698		$ 1,834,477
Total capital expenditures	12,578	9,161
Originations	25,191
Total capital expenditures and originations	37,769	9,161
Office properties
Segment disclosure
Total capital expenditures	11,428	6,830
Hotel properties
Segment disclosure
Total capital expenditures	721	1,504
Multi-family properties
Segment disclosure
Total capital expenditures	429	827
Reportable segments | Office properties
Segment disclosure
Total assets	1,518,743		1,481,757
Reportable segments | Hotel properties
Segment disclosure
Total assets	174,898		174,263
Reportable segments | Multi-family properties
Segment disclosure
Total assets	171,283		173,985
Reportable segments | Lending division
Segment disclosure
Total assets	204,933
Non-segment
Segment disclosure
Total assets	$ 2,841		$ 4,472

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CONCENTRATIONS (Details) (USD $)									3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended			12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended
	Jun. 30, 2014 item	Dec. 31, 2013 item	Jun. 30, 2014 Office properties item	Dec. 31, 2013 Office properties item	Jun. 30, 2014 Multifamily properties item	Dec. 31, 2013 Multifamily properties item	Jun. 30, 2014 Hotel properties item	Dec. 31, 2013 Hotel properties item	Jun. 30, 2014 Revenues Tenant Revenue Concentrations Governmental Tenants	Jun. 30, 2013 Revenues Tenant Revenue Concentrations Governmental Tenants	Jun. 30, 2014 Revenues Tenant Revenue Concentrations Governmental Tenants	Jun. 30, 2013 Revenues Tenant Revenue Concentrations Governmental Tenants	Dec. 31, 2013 Revenues Tenant Revenue Concentrations Governmental Tenants	Jun. 30, 2014 Revenues Geographical concentrations	Jun. 30, 2013 Revenues Geographical concentrations	Jun. 30, 2014 Revenues Geographical concentrations	Jun. 30, 2013 Revenues Geographical concentrations	Jun. 30, 2014 Revenues Geographical concentrations California	Jun. 30, 2013 Revenues Geographical concentrations California	Jun. 30, 2014 Revenues Geographical concentrations California	Jun. 30, 2013 Revenues Geographical concentrations California	Jun. 30, 2014 Revenues Geographical concentrations North Carolina	Jun. 30, 2013 Revenues Geographical concentrations North Carolina	Jun. 30, 2014 Revenues Geographical concentrations North Carolina	Jun. 30, 2013 Revenues Geographical concentrations North Carolina	Jun. 30, 2014 Revenues Geographical concentrations Texas	Jun. 30, 2013 Revenues Geographical concentrations Texas	Jun. 30, 2014 Revenues Geographical concentrations Texas	Jun. 30, 2013 Revenues Geographical concentrations Texas	Jun. 30, 2014 Revenues Geographical concentrations New York	Jun. 30, 2013 Revenues Geographical concentrations New York	Jun. 30, 2014 Revenues Geographical concentrations New York	Jun. 30, 2013 Revenues Geographical concentrations New York	Jun. 30, 2014 Revenues Geographical concentrations Washington, D.C.	Jun. 30, 2013 Revenues Geographical concentrations Washington, D.C.	Jun. 30, 2014 Revenues Geographical concentrations Washington, D.C.	Jun. 30, 2013 Revenues Geographical concentrations Washington, D.C.	Jun. 30, 2014 Real estate investments Geographical concentrations	Dec. 31, 2013 Real estate investments Geographical concentrations	Jun. 30, 2014 Real estate investments Geographical concentrations California	Dec. 31, 2013 Real estate investments Geographical concentrations California	Jun. 30, 2014 Real estate investments Geographical concentrations North Carolina	Dec. 31, 2013 Real estate investments Geographical concentrations North Carolina	Jun. 30, 2014 Real estate investments Geographical concentrations Texas	Dec. 31, 2013 Real estate investments Geographical concentrations Texas	Jun. 30, 2014 Real estate investments Geographical concentrations New York	Dec. 31, 2013 Real estate investments Geographical concentrations New York	Jun. 30, 2014 Real estate investments Geographical concentrations Washington, D.C.	Dec. 31, 2013 Real estate investments Geographical concentrations Washington, D.C.	Jun. 30, 2014 Loans receivable Geographical concentrations Texas	Jun. 30, 2014 Loans receivable Geographical concentrations Virginia	Jun. 30, 2014 Loans receivable Credit concentration
Concentrations
Concentration risk (as a percent)									24.50%	27.40%	25.10%	27.50%		100.00%	100.00%	100.00%	100.00%	60.20%	57.30%	60.30%	57.30%	6.10%	6.60%	5.60%	6.50%	7.70%	8.20%	7.70%	8.10%	2.10%	2.10%	2.10%	2.20%	23.90%	25.80%	24.30%	25.90%	100.00%	100.00%	51.70%	50.50%	5.50%	5.60%	7.50%	7.70%	3.60%	3.70%	31.70%	32.50%	12.70%	10.50%	94.40%
Amount due from Governmental Tenants									$ 6,145,000		$ 6,145,000		$ 5,596,000
Number of real estate properties owned			20	19	5	5	3	3
Number of states in which real estate properties are owned	4	4

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2014

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of estimated fair values of financial instruments not recorded at fair value on consolidated balance sheets

	June 30, 2014				December 31, 2013
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Level
	(in thousands)
Assets:
Loans Receivable Subject to Credit Risk	$	153,254	$	153,362	$	—	$	—		3
SBA 7(a) loans receivable, subject to secured borrowings		40,065		40,302		—		—		3
Liabilities:
Secured borrowings—government guaranteed loans		40,234		40,234		—		—		3
Unsecured revolving lines of credit and revolving facility		288,700		288,700		164,000		164,000		3
Term note		20,000		20,000		—		—		3
Junior subordinated notes		24,871		24,871		—		—		3
Mortgages payable		227,498		234,292		231,105		231,250		3

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LOANS RECEIVABLE (Details 3) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014 item
Classification of loans receivable subject to credit risk
Number of categories of specific identification loans	3
Amount
Total	$ 153,151
%
Total loans (as a percent)	100.00%
Satisfactory
Amount
Total	148,895
%
Total loans (as a percent)	97.20%
OAEM
Amount
Total	1,947
%
Total loans (as a percent)	1.30%
Substandard
Amount
Total	1,388
%
Total loans (as a percent)	0.90%
Doubtful
Amount
Total	921
%
Total loans (as a percent)	0.60%
Commercial Mortgage Loans
Amount
Total	120,153
%
Total loans (as a percent)	100.00%
Commercial Mortgage Loans | Satisfactory
Amount
Total	116,527
%
Total loans (as a percent)	97.00%
Commercial Mortgage Loans | OAEM
Amount
Total	1,947
%
Total loans (as a percent)	1.60%
Commercial Mortgage Loans | Substandard
Amount
Total	849
%
Total loans (as a percent)	0.70%
Commercial Mortgage Loans | Doubtful
Amount
Total	830
%
Total loans (as a percent)	0.70%
SBA 7(a) Loans
Amount
Total	32,998
%
Total loans (as a percent)	100.00%
SBA 7(a) Loans | Satisfactory
Amount
Total	32,368
%
Total loans (as a percent)	98.10%
SBA 7(a) Loans | Substandard
Amount
Total	539
%
Total loans (as a percent)	1.60%
SBA 7(a) Loans | Doubtful
Amount
Total	$ 91
%
Total loans (as a percent)	0.30%

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2014

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

14. COMMITMENTS AND CONTINGENCIES

        Loan Commitments—Commitments to extend credit are agreements to lend to a customer provided the terms established in the contract are met. Our outstanding loan commitments and approvals to fund loans were $26,200,000 at June 30, 2014, the majority of which were for prime-based loans to be originated by our SBA 7(a) subsidiary, the government guaranteed portion of which is intended to be sold. Commitments generally have fixed expiration dates. Since some commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements.

        General—In connection with the ownership and operation of real estate properties, we have certain obligations for the payment of tenant improvement allowances and lease commissions in connection with new leases and renewals.

        Employment Agreements—We have employment agreements with two of our executive officers. Under certain circumstances, as defined within the agreements, the agreements provide for (1) severance compensation or change in control payments to the executive officer in an amount equal to 2.99 times the average of the last three years annual compensation paid to the executive officer and (2) death and disability payments in an amount equal to two times and one time, respectively, the annual salary paid to the executive officer. In addition, to the extent the executive is employed by us on January 1, 2016 and such executive is not entitled to any disability, death or severance payments, the executive would receive restricted share awards as a retention bonus which would vest immediately upon grant. In aggregate, the executive officers would receive 105,000 share awards.

        Litigation—REIT Redux, L.P. et al v. CIM Commercial, et al. On October 9, 2013, a putative class action and derivative lawsuit was filed in the Dallas County Court at Law No. 5 in Dallas County, Texas against and purportedly on behalf of CIM Commercial. The plaintiffs alleged, among other things, that the CIM Commercial board breached its fiduciary duties by approving and recommending the merger to the shareholders, failing to maximize value for the shareholders, engaging in bad faith and self-dealing by preferring transactions that further enriched the trust managers at the expense of the shareholders and conspiring to deprive the shareholders of their voting power and prerogatives. The complaint alleged that CIM Urban REIT aided, abetted and induced those breaches of fiduciary duty.

        CIM Commercial and CIM Urban REIT entered into various agreements with the plaintiffs to settle their claims, which agreements were effective as of January 28, 2014 and were approved by the court on April 4, 2014 (the "Settlement Agreement"). Under the terms of the Settlement Agreement, the Manager entered into a trading plan (the "Trading Plan") designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934 to provide for the purchase of up to 550,000 shares of CIM Commercial Common Stock at prices up to $25.00 per share. The Trading Plan commenced on March 12, 2014 and will, in general, expire on the date that 550,000 shares of CIM Commercial Common Stock have been purchased or August 10, 2014, whichever is earlier. Pursuant to the Trading Plan, which expires on August 10, 2014, the Manager acquired approximately 248,000 shares of Common Stock through July 31, 2014. Additionally, CIM Commercial agreed to be responsible for providing and administering notice of the class action settlement to the members of the settlement class and pay for all reasonable costs incurred in providing such notice. As a result of the settlement, CIM Commercial agreed to payment of attorney's fees and expenses of plaintiffs' counsel of $772,000. In addition, pursuant to the terms of the Settlement Agreement, the Manager agreed to purchase up to 100,000 shares of CIM Commercial Common Stock owned by REIT Redux and its other "reporting persons", at a price of $25.00 per share, if requested by REIT Redux to do so at any time from July 10, 2014 until August 10, 2014. Pursuant to the request of REIT Redux, the Manager expects to complete the acquisition of the 100,000 shares in August 2014.

        We are not currently involved in any other material litigation nor, to our knowledge, is any material litigation currently threatened against us, other than routine litigation arising in the ordinary course of business, most of which is expected to be covered by liability insurance. In the normal course of business we are periodically party to certain legal actions and proceedings involving matters that are generally incidental to our business. In management's opinion, the resolution of these legal actions and proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

        SBA Related—If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced under the SBA 7(a) Program, the SBA may seek recovery of the principal loss related to the deficiency from us. With respect to the guaranteed portion of SBA loans that have been sold, the SBA will first honor its guarantee and then seek compensation from us in the event that a loss is deemed to be attributable to technical deficiencies. Based on historical experience, we do not expect that this contingency is probable to be asserted. However, if asserted, it could have a material adverse effect on our consolidated financial position, results of operations or cash flows.

        Environmental Matters—In connection with the ownership and operation of real estate properties, we may be potentially liable for costs and damages related to environmental matters, including asbestos-containing materials. We have not been notified by any governmental authority of any noncompliance, liability, or other claim in connection with any of the properties, and we are not aware of any other environmental condition with respect to any of the properties that management believes will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

        Rent Expense—The ground lease for a project provides for current annual rent of $437,000, payable quarterly, with increases on June 1, 2015, and every five years thereafter based on the greater of 15% or 50% of the increase in the Consumer Price Index during a five-year adjustment period. In addition, commencing on June 1, 2040 and June 1, 2065, the rent payable during the balance of the lease term shall be increased by an amount equal to 10% of the rent payable during the immediately preceding lease year. The lease term is through May 31, 2089. If the landlord decides to sell the leased property, we have the right of first refusal.

        Rent expense under this lease, which includes straight line rent and amortization of acquired below-market ground lease, was $438,000 for the three months ended June 30, 2014 and 2013, respectively and $876,000 for the six months ended June 30, 2014 and 2013, respectively. We record rent expense on a straight line basis. Straight line rent liability of $10,450,000 and $9,863,000 is included in other liabilities in the accompanying consolidated balance sheets as of June 30, 2014 and December 31, 2013, respectively.

        We lease office space in Dallas, Texas under a lease which expires in May 2018. For the three and six months ended June 30, 2014, rent expense under the lease was $49,000 and $65,000, respectively. Straight line rent liability of $33,000 is included in other liabilities in the accompanying consolidated balance sheet as of June 30, 2014.

        Scheduled future noncancelable minimum lease payments at June 30, 2014 are as follows:

Years Ending December 31	(in thousands)
2014 (Six months ending December 31, 2014)	$	345
2015		616
2016		743
2017		749
2018		607
Thereafter		129,031
	$	132,091

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MERGER (Tables)

6 Months Ended

Jun. 30, 2014

Merger

Schedule of fair value of consideration transferred, based on market price of PMC Commercial shares on Acquisition Date

	(in thousands, except per share data)
PMC Commercial common stock outstanding		2,119
Equity consideration price per share of common stock	$	21.05
Fair value of the equity consideration		44,610
Payment in cash—special dividend		58,279
Total purchase price	$	102,889

Schedule of pro forma consolidated financial information

	Six Months Ended June 30,
	2014		2013
	(in thousands, except per share amounts)
Pro forma revenues	$	138,916	$	128,640
Pro forma net income	$	15,489	$	14,575
Pro forma basic earnings per share	$	0.16	$	0.15
Pro forma diluted earnings per share	$	0.16	$	0.15

PMC Commercial

Merger

Schedule of allocation of purchase price

	(in thousands)
Assets
Cash and cash equivalents	$	3,185
Loans receivable		207,140
Accounts receivable and interest receivable		755
Other assets		5,396
Intangible assets		2,957
Total assets acquired		219,433
Liabilities
Debt		99,849
Accounts payable and accrued expenses		7,396
Special dividend liability and dividend payable		59,286
Other liabilities		3,374
Total liabilities assumed		169,905
Net identifiable assets acquired		49,528
Bargain purchase gain		(4,918	)
Net purchase price	$	44,610

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LOANS RECEIVABLE (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014
Loans receivable
Loans receivable	$ 193,190
Deferred capitalized costs	129
Net loans receivable	193,319
Commercial mortgage loans
Loans receivable
Net loans receivable	120,153
SBA 7(a) loans, subject to secured borrowings
Loans receivable
Net loans receivable	40,039
SBA 7(a) loans
Loans receivable
Net loans receivable	$ 32,998

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MERGER (Details) (USD $) In Thousands, except Share data, unless otherwise specified	0 Months Ended			0 Months Ended	6 Months Ended	0 Months Ended		0 Months Ended				0 Months Ended
	Apr. 28, 2014	Jun. 30, 2014	Dec. 31, 2013	Mar. 11, 2014 Common Stock	Jun. 30, 2014 Common Stock	Mar. 11, 2014 CIM Urban REIT	Mar. 11, 2014 CIM Urban REIT	Mar. 11, 2014 CIM Urban REIT Preferred Stock	Mar. 11, 2014 PMC Commercial CIM Urban REIT	Mar. 25, 2014 PMC Commercial CIM Urban REIT	Mar. 11, 2014 PMC Commercial CIM Urban REIT	Mar. 11, 2014 PMC Commercial CIM Urban REIT Common Stock	Mar. 11, 2014 PMC Commercial CIM Urban REIT Preferred Stock
Merger
Shares issued				2,119,244	2,119,244	2,226,509		65,028,571				4,400,000
Treasury stock		107,265									107,265
Number of shares to be issued on conversion of each preferred stock									1.4
Reverse stock split ratio	0.2												0.2
Number of shares to be issued on conversion of preferred stock									91,039,999
Number of shares to be issued on conversion of preferred stock expressed as a percentage of outstanding stock							97.80%
Special cash dividend issued to shareholders of record at the close of the business day prior to the closing of transactions (in dollars per share)										$ 27.50
Consideration Transferred
Common stock outstanding		97,581,598	4,400,000								2,119,000
Equity consideration price per share of common stock (in dollars per share)											$ 21.05
Fair value of the equity consideration									$ 44,610
Payment in cash - special dividend									58,279
Total purchase price									$ 102,889

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CONSOLIDATED STATEMENTS OF EQUITY (USD $)	Total	Common Stock	Preferred Stock	Additional Paid-in Capital	Distributions In Excess of Earnings	Treasury Shares	Noncontrolling Interests
Balance at Dec. 31, 2012	$ 1,466,073,000	$ 220,000	$ 650,000	$ 1,772,789,000	$ (310,384,000)		$ 2,798,000
Balance (in shares) at Dec. 31, 2012		4,400,000	65,028,571
Increase (Decrease) in Stockholders' Equity
Distributions to noncontrolling interests	(41,185,000)				(41,035,000)		(150,000)
Contributions	32,000			32,000
Net income	10,630,000				10,521,000		109,000
Balance at Jun. 30, 2013	1,435,550,000	220,000	650,000	1,772,821,000	(340,898,000)		2,757,000
Balance (in shares) at Jun. 30, 2013		4,400,000	65,028,571
Balance at Dec. 31, 2013	1,376,483,000	220,000	650,000	1,772,821,000	(399,953,000)		2,745,000
Balance (in shares) at Dec. 31, 2013		4,400,000	65,028,571
Increase (Decrease) in Stockholders' Equity
Distributions pre-merger	(16,100,000)				(16,100,000)
Contributions from noncontrolling interests	10,000						10,000
Distributions to noncontrolling interests	(148,000)						(148,000)
Reverse acquisition capital transaction	44,610,000	111,000		49,400,000		(4,901,000)
Reverse acquisition capital transaction (in shares)		2,119,244
Conversion of preferred stock to common stock		910,000	(650,000)	(260,000)
Conversion of preferred stock to common stock (in shares)		91,039,999	(65,028,571)
Change in par value		(1,143,000)		1,143,000
Exercise of stock options	201,000			201,000
Exercise of stock options (in shares)		14,500
Stock based compensation expense	373,000			373,000
Stock based compensation expense (in shares)		8,000
Retirement of fractional shares	(3,000)			(3,000)
Retirement of fractional shares (in shares)		(145)
Common dividends ($0.26875 per share)	(21,671,000)				(21,671,000)
Preferred dividends ($0.0705 per share)	(4,585,000)				(4,585,000)
Net income	19,731,000				19,618,000		113,000
Balance at Jun. 30, 2014	$ 1,398,901,000	$ 98,000		$ 1,823,675,000	$ (422,691,000)	$ (4,901,000)	$ 2,720,000
Balance (in shares) at Jun. 30, 2014		97,581,598

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2014

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        For more information regarding our significant accounting policies and estimates, please refer to "Summary of Significant Accounting Policies" contained in Note 3 to CIM Urban's consolidated financial statements for the year ended December 31, 2013, included in our Current Report on Form 8-K/A dated May 9, 2014.

        Interim Financial Information—The accompanying interim consolidated financial statements of CIM Commercial have been prepared by our management in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Certain information and note disclosures required for annual financial statements have been condensed or excluded pursuant to Securities and Exchange Commission ("SEC") rules and regulations. Accordingly, the interim consolidated financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. Our accompanying interim consolidated financial statements should be read in conjunction with CIM Urban's audited consolidated financial statements and the notes thereto, included in our Current Report on Form 8-K/A dated May 9, 2014.

        Principles of Consolidation—The consolidated financial statements include the accounts of CIM Commercial and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

        Investments in Real Estate—Real estate acquisitions are recorded at cost as of the acquisition date. Costs related to the acquisition of properties are expensed as incurred. Investments in real estate are stated at depreciated cost. Depreciation and amortization are recorded on a straight line basis over the estimated useful lives as follows:

Buildings and improvements	15 - 40 years
Furniture, fixtures, and equipment	3 - 5 years
Tenant improvements	Shorter of the useful lives or the terms of the related leases

        Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred.

        Investments in real estate are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount to the future net cash flows, undiscounted and without interest, expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The estimated fair value of the asset group identified for step two testing is based on either the income approach with market discount rate, terminal capitalization rate and rental rate assumptions being most critical, or on the sales comparison approach to similar properties. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. No impairment of long-lived assets was recognized during the three and six months ended June 30, 2014 and 2013.

        Loans Receivable—We primarily originate loans to small businesses collateralized by first liens on the real estate of the related business. Loans receivable are carried at their unamortized principal balance less unamortized acquisition discounts and loan loss reserves, if applicable, and adjusted for capitalized loan origination costs. For loans originated under the Small Business Administration's (the "SBA") 7(a) Guaranteed Loan Program (the "SBA 7(a) Program") upon sale of the SBA guaranteed portion of the loans which are accounted for as sales, the unguaranteed portion of the loan retained by us is valued on a fair value basis and a discount is recorded as a reduction in basis of the retained portion of the loan.

        We have a quarterly review process to identify and evaluate potential exposure to loan losses. Loans that require specific identification review are identified based on one or more negative characteristics including, but not limited to, non-payment or lack of timely payment of principal and/or interest or property taxes or deterioration of the physical property. The specific identification process begins with management's evaluation of the estimated fair value of the loan utilizing the present value of the expected future cash flows discounted at the loan's effective interest rate and/or an estimation of underlying collateral values. The probability of loss is then determined based on various factors including our historical experience with similar borrowers and/or individual borrower or collateral characteristics, and in certain circumstances, the strength of the guarantors. The liquidation probability is then applied to the identified loss exposure to determine the general or specific reserve for that loan.

        At the Acquisition Date, the carrying value of our loans was adjusted to estimated fair market value and acquisition discounts of $33,907,000 were recorded, which is being accreted to interest income using the effective interest method. We will establish a general loan loss reserve when available information indicates that it is probable a loss has occurred based on the carrying value of the portfolio and the amount of the loss can be reasonably estimated. Significant judgment is required in determining the general loan loss reserve, including estimates of the likelihood of default and the estimated fair value of the collateral. The general loan loss reserve includes those loans, which may have negative characteristics which have not yet become known to us. In addition to the reserves established on loans not considered impaired that have been evaluated under a specific evaluation, the general loan loss reserve uses a consistent methodology to determine a loss percentage to be applied to loan balances. These loss percentages are based on many factors, primarily cumulative and recent loss history and general economic conditions.

        We recognized interest income and fees for the three and six months ended June 30, 2013, related to a first mortgage note on a hotel located near the Los Angeles Airport ("LAX") of $0 and $316,000, respectively. On October 8, 2013, we submitted the highest bid at a foreclosure auction and took possession of the hotel. The mortgage note investment basis was transferred to the property components at their relative fair values on title transfer.

        Deferred Rent Receivable and Charges—Deferred rent receivable and charges consist of deferred rent, deferred loan costs and deferred leasing costs. Deferred rent receivable is $50,971,000 and $49,543,000 at June 30, 2014, and December 31, 2013, respectively. Deferred loan costs, which represent legal and third-party fees incurred in connection with our borrowing activities, are capitalized and amortized to interest expense on a straight line basis over the life of the related loan, approximating the effective interest method. Deferred loan costs of $6,315,000 and $5,748,000 are presented net of accumulated amortization of $4,272,000 and $3,620,000 at June 30, 2014, and December 31, 2013, respectively. Deferred leasing costs, which represent lease commissions and other direct costs associated with the acquisition of tenants, are capitalized and amortized on a straight line basis over the terms of the related leases. Deferred leasing costs of $60,368,000 and $55,826,000 are presented net of accumulated amortization of $23,423,000 and $19,891,000 at June 30, 2014, and December 31, 2013, respectively.

        Noncontrolling Interests—Noncontrolling interests represent interests in the various properties not owned by us.

        Consolidation Considerations for Our Investments in Real Estate—Accounting Standards Codification ("ASC") 810-10, Consolidation, addresses how a business enterprise should evaluate whether it has a controlling interest in an entity through means other than voting rights that would require the entity to be consolidated. We analyze our investments in real estate in accordance with this accounting standard to determine whether they are variable interest entities, and if so, whether we are the primary beneficiary. Our judgment with respect to our level of influence or control over an entity and whether we are the primary beneficiary of a variable interest entity involves consideration of various factors, including the form of our ownership interest, our voting interest, the size of our investment (including loans), and our ability to participate in major policy-making decisions. Our ability to correctly assess our influence or control over an entity affects the presentation of these investments in our consolidated financial statements.

        Use of Estimates—The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

        Reclassifications—Certain prior-period amounts have been reclassified to conform with the current-period presentation. For the three and six months ended June 30, 2013, hotel revenues of $10,555,000 and $20,132,000, respectively, have been reclassified to rental and other property income, other income of $1,266,000 and $1,640,000, respectively, has been reclassified to interest and other income, and hotel operating expenses of $7,042,000 and $13,481,000, respectively, have been reclassified to rental and other property operating expenses.

        Recently Issued Accounting Pronouncements—In April 2014, the Financial Accounting Standards Board ("the FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360). Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions that do not meet the discontinued-operations criteria. The revised guidance is effective prospectively to all disposals (or classifications as held for sale) that occur in annual periods (and interim periods therein) beginning on or after December 15, 2014, with early adoption permitted. Entities are prohibited from applying the new ASU to any component, equity method investment, or acquired business that is classified as held for sale before the adoption date. We early adopted this guidance during the second quarter of 2014, and the adoption did not have a material impact on our consolidated financial statements.

        In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including the guidance on real estate de-recognition for most transactions. For public entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early application is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in the ASU. The modified approach provides entities relief from having to restate and present comparable prior-year financial statement information; however, entities will still need to evaluate existing contracts as of the date of initial adoption under the ASU to determine whether a cumulative adjustment is necessary. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

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DIVIDENDS DECLARED (Details) (USD $)	0 Months Ended			6 Months Ended		0 Months Ended
	Jun. 12, 2014	Apr. 28, 2014	Mar. 24, 2014	Jun. 30, 2014	Jun. 30, 2013	Mar. 10, 2014 CIM Urban Partners, L.P	Mar. 10, 2014 PMC CIM Urban Partners, L.P
Dividend declared
Common stock as converted dividend declared (in dollars per share)		$ 0.0215	$ 0.0285			$ 0.1685
Dividend paid				$ 16,100,000	$ 41,035,000	$ 16,100,000
Dividend paid				59,286,000			59,286,000
Dividend paid per common stock (in dollars per share)							$ 27.975
Payment in cash - special dividend (in dollars per share)							$ 27.50
Pro rata portion of regular quarterly cash dividend (in dollars per share)							$ 0.475
Common stock dividend declared (in dollars per share)	$ 0.21875		$ 0.05	$ 0.26875
Preferred dividend declared (in dollars per share)		$ 0.0302	$ 0.0403	$ 0.0705
Aggregate amount of dividend declared to preferred shareholders		$ 1,964,000		$ 4,585,000

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2014

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of estimated useful lives of real estate investment assets

Buildings and improvements	15 - 40 years
Furniture, fixtures, and equipment	3 - 5 years
Tenant improvements	Shorter of the useful lives or the terms of the related leases

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CONCENTRATIONS (Tables)

6 Months Ended

Jun. 30, 2014

Revenues

Concentrations

Schedule of concentration risk from properties

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
California		60.2	%		57.3	%		60.3	%		57.3	%
North Carolina		6.1			6.6			5.6			6.5
Texas		7.7			8.2			7.7			8.1
New York		2.1			2.1			2.1			2.2
Washington, D.C.		23.9			25.8			24.3			25.9
		100.0	%		100.0	%		100.0	%		100.0	%

Real estate investments

Concentrations

Schedule of concentration risk from properties

	June 30, 2014			December 31, 2013
California		51.7	%		50.5	%
North Carolina		5.5			5.6
Texas		7.5			7.7
New York		3.6			3.7
Washington, D.C.		31.7			32.5
		100.0	%		100.0	%

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RELATED-PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2014

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS

13. RELATED-PARTY TRANSACTIONS

        CIM Urban REIT Management, LP (the "Management Company"), an affiliate of CIM Urban REIT, provides asset management services to CIM Urban. For these services, CIM Urban pays asset management fees to the Management Company, on a quarterly basis, in arrears. The fee is calculated as a percentage of the daily average gross fair value of our investments, as defined, as follows:

Daily Average Gross Fair Value of CIM Urban' Investments
				Quarterly Fee Percentage
From Greater of		To and Including
(in thousands)
$	—	$	500,000		0.2500	%
	500,000		1,000,000		0.2375	%
	1,000,000		1,500,000		0.2250	%
	1,500,000		4,000,000		0.2125	%
	4,000,000		20,000,000		0.1000	%

        The Management Company earned asset management fees of $5,798,000 and $5,431,000 for the three months ended June 30, 2014 and 2013, respectively and $11,479,000 and $10,840,000 for the six months ended June 30, 2014 and 2013, respectively. At June 30, 2014, and December 31, 2013, asset management fees of $5,898,000 and $5,426,000, respectively, were due to the Management Company.

        CIM Management, Inc. and certain of its affiliates (collectively, the "CIM Management Entities"), all affiliates of CIM Urban REIT, provide property management, leasing, and development services to CIM Urban. The CIM Management Entities earned property management fees, which are included in rental and other property operating expenses, totaling $1,272,000 and $1,215,000 for the three months ended June 30, 2014 and 2013, respectively and $2,531,000 and $2,362,000 for the six months ended June 30, 2014 and 2013, respectively. CIM Urban also reimbursed the CIM Management Entities $1,749,000 and $955,000 during the three months ended June 30, 2014 and 2013, respectively and $3,793,000 and $2,344,000 during the six months ended June 30, 2014 and 2013, respectively, for the cost of on-site personnel incurred on behalf of CIM Urban, which is included in rental and other property operating expenses. The CIM Management Entities earned leasing commissions of $839,000 and $11,000 for the three months ended June 30, 2014 and 2013, respectively and $1,351,000 and $297,000 for the six months ended June 30, 2014 and 2013, respectively, which were capitalized to deferred charges. In addition, the CIM Management Entities earned development management fees of $157,000 and $158,000 for the three months ended June 30, 2014 and 2013, respectively and $244,000 and $294,000 for the six months ended June 30, 2014 and 2013, respectively, which were capitalized to investments in real estate.

        At June 30, 2014 and December 31, 2013, fees payable and expense reimbursements due to the CIM Management Entities of $2,408,000 and $1,445,000, respectively, are included in due to related parties. Also included in due to related parties as of June 30, 2014, and December 31, 2013, is $(12,000) and $(64,000), respectively, due to (from) the CIM Management Entities and related parties. We have also entered into contracts with third-party property management companies.

        Certain of these management companies also provide leasing and development management services, for which they are compensated in accordance with the agreements. Management fees incurred to third-party management companies related to the rental properties totaled $419,000 and $344,000 for the three months ended June 30, 2014 and 2013, respectively and $811,000 and $672,000 for the six months ended June 30, 2014 and 2013, respectively, which were included in rental and other property operating expenses.

        On the Acquisition Date, pursuant to the terms of the Merger Agreement, CIM Commercial and its lending subsidiaries entered into the Master Services Agreement (the "Master Services Agreement") with CIM Service Provider, LLC (the "Manager") pursuant to which the Manager agrees to provide or arrange for other service providers to provide management and administration services to CIM Commercial and its subsidiaries following the Merger. Pursuant to the Master Services Agreement, CIM Commercial pays a base service fee (the "Base Service Fee") to the Manager equal to $1,000,000 per year (subject to an annual escalation by a specified inflation factor beginning on January 1, 2015), payable quarterly in arrears. The Base Service Fee began to accrue on the Acquisition Date and was pro-rated based on the number of days during the first quarter in which the Master Services Agreement was in effect. For the three and six months ended June 30, 2014, the Manager earned a Base Service Fee of $250,000 and $306,000, respectively. In addition, pursuant to the terms of the Master Services Agreement, the Manager may receive compensation for performing certain services for CIM Commercial and its subsidiaries that are not covered under the Base Service Fee. During the six months ended June 30, 2014, such services performed by the Manager included accounting, tax, reporting, internal audit, legal, compliance, risk management, IT, human resources and corporate communications. The Manager's compensation is based on the salaries and benefits of the employees of the Manager and/or its affiliates who performed these services (allocated based on the percentage of time spent on the affairs of CIM Commercial and its subsidiaries). For the three and six months ended June 30, 2014, we expensed $290,000 for such services. At June 30, 2014, $596,000 was due to the Manager.