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Real Estate Owned, Net
 12 Months Ended
Dec. 31, 2024
Real Estate [Abstract]  
Real Estate Owned, Net REAL ESTATE OWNED, NET
During the year ended December 31, 2024, we acquired seven REO assets through foreclosure or consolidation, for a total acquisition price of $645.7 million. We allocated $410.2 million to building and building improvements, $180.7 million to land and land improvements, $83.3 million to acquired intangible assets, and $28.5 million to other components of the purchase price. In aggregate, we charged off $228.4 million of CECL reserves relating to these loans, as the loans’ carrying value of $922.9 million at the time of acquisition exceeded the acquisition date fair value noted above. See Note 2 for additional discussion of REO.
The acquisition of seven REO assets during the year were accounted for as asset acquisitions under ASC Topic 805 “Business Combinations,” and upon acquisition we recognized each respective property as an REO asset held for investment. The following table presents the REO assets that were acquired during the year ended December 31, 2024 ($ in thousands):
Acquisition Date
Location
Property Type
Acquisition Date Fair Value
March 2024
Mountain View, CA
Office$60,203 
July 2024
San Antonio, TX
Multifamily
33,607 
September 2024
Burlington, MA
Office64,628 
October 2024
Washington, DC
Office107,016 
December 2024
San Francisco, CA
Hospitality201,530 
December 2024
El Segundo, CA
Office145,363 
December 2024
Denver, CO
Office33,337 
Total645,684 
The following table presents the REO assets and liabilities included in our consolidated balance sheets ($ in thousands):
December 31, 2024
Assets
Building and building improvements$410,546 
Land and land improvements181,083 
Total$591,629 
Less: accumulated depreciation(3,444)
Real estate owned, net$588,185 
Intangible real estate assets$83,253 
Less: accumulated amortization(5,964)
Intangible real estate assets, net(1)
$77,289 
Liabilities
Intangible real estate liabilities
$(1,420)
Less: accumulated amortization1 
Intangible real estate liabilities, net(2)
$(1,421)
(1)Included within other assets on our consolidated balance sheets. Refer to Note 6 for additional information.
(2)Included within other liabilities on our consolidated balance sheets. Refer to Note 6 for additional information.
We recognized revenue from real estate owned of $13.0 million during the year ended December 31, 2024, which is included in revenues from real estate owned in our consolidated statements of operations.
We recognized expenses from real estate owned of $22.1 million during the year ended December 31, 2024. These expenses consisted of $9.2 million of depreciation and amortization expense, and $12.8 million of other operating expenses. These expenses are included in expenses from real estate owned in our consolidated statements of operations. There was no income or expense recognized related to REO assets during the years ended December 31, 2023 and 2022.
As of December 31, 2023, we did not have any REO assets or liabilities.
The following table presents the undiscounted future minimum rents we expect to receive for our office properties as of December 31, 2024. Leases at our multifamily assets are short term, generally 12 months or less, and are therefore not included. ($ in thousands):
Future Minimum Rents
2025$47,185 
202635,141 
202725,745 
202819,579 
202917,199 
Thereafter
33,976 
Total
$178,825 

The following table presents the amortization of lease intangibles for the year ended December 31, 2024. There was no amortization of lease intangibles during the years ended December 31, 2023 and 2022 ($ in thousands):
Year Ended December 31,
2024
In-place lease intangibles(1)
$5,770 
Above-market lease intangibles(2)
194 
Below-market lease intangibles(2)
(1)
Total amortization of lease intangibles
5,963 
(1)Included within expenses of real estate owned on our consolidated statements of operations.
(2)Included within revenue from real estate owned on our consolidated statements of operations.
The following table presents the amortization of lease intangibles for each of the succeeding fiscal years ($ in thousands):
In-place lease intangibles
Above-market lease intangibles
Below-market lease intangibles
2025$27,003 $4,973 $(330)
202613,645 2,950 (282)
20277,395 2,262 (254)
20284,525 1,781 (174)
20293,686 1,192 (138)
Thereafter
5,662 2,215 (243)
Total
$61,916 $15,373 $(1,421)