Notes and Other Receivables

9 Months Ended

Sep. 30, 2020

Notes and other receivables consist of the following as of September 30, 2020 and December 31, 2019 ($ in thousands):


	September 30, 2020		December 31, 2019
Note receivable, secured, bearing interest at 9.00%, due May 2021 (Originated May 2017) (1)	$	—	$	16,828
Note receivable, secured, bearing interest at 9.90%, due November 2021 (Originated November 2018)	13,857		12,838

Related party note receivable, secured, bearing variable rate interest, due February 2020 (Originated November 2019) (2)(3)	—		85,713
Notes receivable, secured, bearing interest at 10.50%, due February 2023 (Originated March 2020)	7,499		—
Note receivable, secured, bearing interest at 11.00%, due October 2023 (Originated April 2020)	13,134		—
Notes and other receivables from affiliates (4)	5,505		4,442
Straight line rent receivables	21,373		6,083
Other receivables	14,236		8,461
Allowance for credit losses	(172)		—
Total notes and other receivables	$	75,432	$	134,365

(1) In January 2020, the Company received cash of $16.9 million from the payoff of this note receivable.

(2) See Note 6, Related Party Transactions, for additional details.

(3) In January 2020, the Company received cash of $85.8 million from the payoff of this note receivable.

(4) These amounts consist of short-term loans outstanding and due from various joint ventures as of September 30, 2020 and December 31, 2019. See Note 6, Related Party Transactions, for additional details.

In the normal course of business, the Company originates and holds two types of loans: mezzanine loans issued to entities that are pursuing apartment development and short-term bridge loans issued to joint ventures with the Company.

The Company categorizes development project mezzanine loans into risk categories based on relevant information about the ability of the borrowers to service their debt, such as: current financial information, credit documentation, public information,

and previous experience with the borrower. The Company initially analyzes each mezzanine loan individually to classify the credit risk of the loan. On a periodic basis the Company evaluates and performs site visits of the development projects associated with the mezzanine loans to confirm whether they are on budget and whether there are any delays in development that could impact the Company's assessment of credit loss.

All bridge loans that the Company issues are, by their nature, short-term and meant only to provide time for the Company’s joint ventures to obtain long-term funding for newly acquired communities. As the Company is a partner in the joint ventures that are borrowing such funds and has performed a detailed review of each community as part of the acquisition process, there is little to no credit risk associated with such loans. As such, the Company does not review credit quality indicators for bridge loans on an ongoing basis.

The Company estimates the allowance for credit losses for each loan type using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made, if necessary, for differences in current loan-specific risk characteristics. For example, in the case of mezzanine loans, adjustments may be made due to differences in track record and experience of the mezzanine loan sponsor as well as the percent of equity that the sponsor has contributed to the project. The following table presents the activity in the allowance for credit losses for notes and other receivables by loan type ($ in thousands):


	Mezzanine Loans		Bridge Loans		Total
Balance at December 31, 2019	$	—	$	—	$	—
Impact of adoption ASC 326	147		43		190
Provision for credit losses	25		(43)		(18)
Balance at September 30, 2020	$	172	$	—	$	172

No loans were placed on nonaccrual status or charged off during the nine months ended September 30, 2020 or 2019.