Loans Receivable

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Loans Receivable

Loans Receivable

As of March 31, 2015 and December 31, 2014, the Company's loans receivable were comprised primarily of first and second mortgage loans and mezzanine loans on real estate.

The following is a summary of our loans receivable as of March 31, 2015 and December 31, 2014:

	Loan carrying-value(1)
Loan		3/31/2015		12/31/2014		Interest Rate		Maturity Date
Westmont, IL(2)		$	12,221	$	12,152	6.45	%	10/2015
Southfield, MI(3)		3,310		3,296		4.55	%	02/2015
Austin, TX		2,914		2,800		16.00	%	10/2018
Kennewick, WA		85,314		85,254		9.00	%	05/2022
Other		2,068		2,133		8.00	%	2021-2022
		$	105,827	$	105,635

(1) Loan carrying value includes accrued interest and is net of origination costs and loan losses, if any.

(2) Borrowers are in default and the Company commenced foreclosure proceedings. The tenant at the office property constituting the collateral terminated its lease. The Company recognized an impairment of $13,939 during 2013. During the three months ended March 31, 2015 and 2014, the Company recognized $0 and $425 of interest income relating to the impaired loan, respectively, and the loan had an average recorded investment value of $12,510 and $12,561, respectively. At March 31, 2015, the impaired loan receivable had a contractual unpaid balance of $29,455.

(3) The Company recorded a $2,500 loan loss in the fourth quarter of 2014 as the Company determined it was probable that it would not collect the amount owed at maturity. During the three months ended March 31, 2015, the Company recognized $14 of interest income relating to the impaired loan and the loan had an average recorded investment of $3,303. At March 31, 2015, the impaired loan receivable had a contractual unpaid balance of $6,083. See note 15.

The Company had two types of financing receivables: loans receivable and a capitalized financing lease. The Company determined that its financing receivables operate within one portfolio segment as they are within the same industry and use the same impairment methodology. The Company's loans receivable are secured by commercial real estate assets and the capitalized financing lease, for a commercial office property located in Greenville, South Carolina, was sold in December 2014. In addition, the Company assesses all financing receivables for impairment, when warranted, based on an individual analysis of each receivable.

The Company's financing receivables operate within one class of financing receivables as these assets (1) are collateralized by commercial real estate and (2) similar metrics are used to monitor the risk and performance of these assets. The Company's management uses credit quality indicators to monitor financing receivables such as quality of collateral, the underlying tenant's credit rating and collection experience. As of March 31, 2015, the financing receivables were performing as anticipated and there were no significant delinquent amounts outstanding, other than as disclosed above.