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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Inputs, Liabilities, Quantitative Information
The following is a summary of borrowings as of September 30, 2020 and December 31, 2019 (in thousands):
September 30, 2020December 31, 2019
Recorded Principal Balance(1)
Fair Value
Recorded Principal Balance(1)
Fair Value
Term loans$1,609,291 $1,602,032 $1,636,470 $1,656,765 
Secured portfolio loan facilities391,011 404,971 390,780 399,054 
Mortgages(2)
318,701 330,159 326,849 337,614 
Total$2,319,003 $2,337,162 $2,354,099 $2,393,433 
(1)Recorded principal balances include net deferred financing expenses of $14.5 million and $17.2 million as of September 30, 2020 and December 31, 2019, respectively. Recorded principal balances also include assumed market debt adjustments of $1.4 million and $1.2 million as of September 30, 2020 and December 31, 2019, respectively. We have recorded deferred financing expenses related to our revolving credit facility in Other Assets, Net on our consolidated balance sheets which are not included in these balances.
(2)Our finance lease liability is included in the mortgages line item, as presented.
Fair Value, Liabilities Measured on Recurring Basis air value measurements that occurred as of and during the nine months ended September 30, 2020 and the year ended December 31, 2019, were as follows (in thousands):
September 30, 2020December 31, 2019
Level 1Level 2Level 3Level 1Level 2Level 3
Recurring
Derivative assets(1)
$— $— $— $— $2,728 $— 
Derivative liabilities(1)
— (60,615)— — (20,974)— 
Earn-out liability— — (22,000)— — (32,000)
Nonrecurring
Impaired real estate assets, net(2)
— — — — 280,593 — 
Impaired corporate intangible asset, net(3)
— — — — — 4,401 
(1)We record derivative assets in Other Assets, Net and derivative liabilities in Derivative Liabilities on our consolidated balance sheets.
(2)The carrying value of impaired real estate assets may have subsequently increased or decreased after the measurement date due to capital improvements, depreciation, or sale.
(3)The carrying value of our impaired corporate intangible asset, net, which consists of in-place management contracts, subsequently decreased after the measurement date due to amortization as well as through derecognition as part of the merger with REIT III.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation The following table presents a reconciliation of the change in the earn-out liability measured at fair value on a recurring basis using Level 3 inputs and recognized as Other Income (Expense), Net in the consolidated statements of operations (in thousands):
Earn-Out Liability
Balance at December 31, 2019$32,000 
Change in fair value recognized in Other Income (Expense), Net
(10,000)
Balance at September 30, 2020$22,000 
Fair Value Measurements, Nonrecurring
We recorded the following expense upon impairment of real estate assets (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Impairment of real estate assets$— $35,710 $— $74,626