LOANS

12 Months Ended

Dec. 31, 2024

The Company made preferred equity investments in two separate joint ventures which in turn acquired multifamily properties in the locations identified below. In accordance with GAAP, these investments are treated as loans. These investments are unsecured and are subordinate, including the payment of the returns thereon, to the mortgage debt encumbering the property acquired by the applicable joint venture. Information as to these investments at December 31, 2024 is summarized below (dollars and thousands):


Location	Investment Date	Annual Return		Current Return		Hurdle Return		Invested Amount		Redemption Date	Deferred fees
Wilmington, NC	October 2024	13	%	6.00	%	7.00	%	$	7,000	November 2031	$	135
Kennesaw, GA	November 2024	13	%	6.50	%	6.50	%	11,250		June 2029	178
								$	18,250		$	313

These investments provide for (1) an Annual Return ( as set forth in the table above) to the Company, of which the Current Return ( as set forth in the table above) is payable monthly to the extent of remaining cash flow, if any, parri passu or after the sponsor's receipt of its management fees and specified returns on its investment and (2) the total amount invested by the Company, including any unpaid portion of the Current Return and the Hurdle Return, to be payable to the Company, prior to any payments to the sponsor, upon the earlier to occur of certain events (e.g., sale of the property or the refinancing of the mortgage underlying the property) and the redemption date specified above. The Current Return is recorded as interest income when it is due from the sponsor and the Hurdle Return is recognized as interest income when it is received. The Company's exposure to loss is limited to its original Invested Amount (as set forth in the table above).

The following table provides the net carrying value of our loans as of December 31, 2024 (dollars in thousands);


	December 31, 2024
Unpaid principal balance	$	18,250
less: allowance for credit loss	(270)
less: deferred loan fees	(313)
Net carrying value	$	17,667

We recorded $206,000 of interest income (including loan fee amortization of $9,000) related to these loans in the year ended December 31, 2024. As of December 31, 2024, these loans were current in their payment of the Current Return.