Notes Receivable, net and Other

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Notes Receivable, net and Other

Notes Receivable, net and Other

Notes receivable, net are summarized in the table below (dollars in thousands):

	Interest Rate		June 30, 2021		December 31, 2020
Construction Financing Note (1) (5)
Face amount	7.0	%	$	4,000	$	4,000
Discount (2)			(7)		(143)
			3,993		3,857
Certificate of Occupancy Note (3) (5)
Face amount	7.0	%	$	5,250	$	5,250
Discount (4)			(688)		(844)
			4,562		4,406
Notes receivable, net			$	8,555	$	8,263

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(1)    The outstanding principal balance and all accrued and unpaid interest shall be due and payable on or before the earlier of (i) the buyer closing on third-party institutional financing for the construction of improvements on the property, (ii) three years after the development commencement date, or (iii) July 9, 2024.

(2)    The discount represents the imputed interest during the interest-free period. Interest begins accruing on July 9, 2021.

(3)    The outstanding principal balance and all accrued and unpaid interest shall be due and payable on or before July 9, 2025.

(4)    The discount represents the imputed interest during the interest-free period. Interest begins accruing on July 9, 2023.

(5)     The notes receivable are secured by the 1.65-acre land parcel adjacent to the Hilton St. Petersburg Bayfront.

No cash interest income was recorded for the three and six months ended June 30, 2021 and 2020.

We recognized discount amortization income as presented in the table below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2021		2020		2021		2020
Other income (expense)	$	147	$	137	$	292	$	272

On January 1, 2020, we adopted the provisions of ASC Topic 326, Financial Instruments - Credit Losses. Upon adoption we evaluated the notes and other receivables under the criteria in ASC Topic 326. Upon adoption we determined that the expected credit loss associated with the notes and other receivables was immaterial. As of June 30, 2021 and December 31, 2020, the expected credit loss associated with the notes and other receivables continues to be immaterial.

Other consideration received from the sale of the 1.65-acre parking lot adjacent to the Hilton St. Petersburg Bayfront is summarized in the table below (dollars in thousands):

	Imputed Interest Rate		June 30, 2021			December 31, 2020
Future ownership rights of parking parcel	7.0	%	$	4,100		$	4,100
Imputed interest			529			372
			$	4,629	(1)	$	4,472	(1)

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(1)    Included in “other assets” in the consolidated balance sheets.

For the three and six months ended June 30, 2021 and 2020, we recognized imputed interest income as presented in the table below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2021		2020		2021		2020
Other income (expense)	$	79	$	74	$	157	$	147

We recognized amortization expense related to the free use of parking easement as presented in the table below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2021		2020		2021		2020
Other income (expense)	$	—	$	—	$	—	$	(117)