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Debt and Preferred Equity Investments (Tables)
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
Schedule of Activity in Debt and Preferred Equity Investments
Below is a summary of the activity in our consolidated debt and preferred equity investments for the three months ended March 31, 2026 and the twelve months ended December 31, 2025 (in thousands):
March 31, 2026December 31, 2025
Balance at beginning of year (1)
$168,358 $303,726 
Debt investment originations/fundings/accretion (2)
8 14,118 
Preferred equity investment originations/accretion (2)
— 2,233 
Repayment/sales/syndications/equity ownership/amortization (3)
(50,283)(151,419)
Net change in loan loss reserves— (300)
Balance at end of period (1) (4)
$118,083 $168,358 
(1)Net of unamortized fees, discounts, and premiums.
(2)Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3)In December 2025, a restructuring agreement was executed for one of our loans, and a $3.25 million partial loan repayment was received, followed by an additional $2.50 million partial loan repayment received in January 2026 which extended the loan to March 2026. Pursuant to the restructuring agreement, a final loan repayment of $26.0 million was received in February 2026, at which point the remaining loan balance was converted into a participation interest in the underlying property, which is included in "Investments in unconsolidated joint ventures" on our consolidated balance sheet.
(4)Excludes a preferred equity investment with a carrying value of $127.1 million as of March 31, 2026 and $122.4 million as of December 31, 2025, which the Company sold to the Fund in October 2025. The sale did not meet sale accounting under ASC 860 and, as a result, the investment is still presented within "Investments in unconsolidated joint ventures" on our consolidated balance sheet. See Note 5, "Investments in Unconsolidated Joint Ventures." Also excludes a preferred equity investment in an entity in which the Company is the primary beneficiary. The underlying property, 315 West 33rd Street, is consolidated in our financial statements.
Schedule of Debt Investments
The table below summarizes our consolidated debt and preferred equity investments, which had an aggregate weighted average current yield of 7.04% as of March 31, 2026 (dollars in thousands):
Floating RateFixed Rate
Total Carrying Value (1)

Future Funding
Obligations		Senior Financing
Maturity (3)
Type
Carrying Value (1)
Face Value
Interest Rate (2)
Carrying Value (1)
Face ValueInterest Rate
Mezzanine Debt$77,597 $77,602 
S + 4.95% - 11.63%
$40,486 $40,786 
0.00% - 8.00%
$118,083 $2,999 $430,528 2025 - 2029
Balance at end of period$77,597 $77,602 $40,486 $40,786 $118,083 $2,999 $430,528 
(1)Net of unamortized fees, discounts, and premiums.
(2)Floating interest rates are presented with the stated spread over Term SOFR ("S").
(3)Excludes available extension options to the extent they have not been exercised as of the date of this filing. One loan with a carrying value of $9.27 million as of March 31, 2026 and December 31, 2025 was put on non-accrual in January 2025 and went into default in August 2025. It remains on non-accrual as of March 31, 2026. No investment income has been recognized subsequent to it being put on non-accrual. The Company is in discussions with the borrower on resolution of the past maturity.
Schedule of Roll Forward of our Total Allowance for Loan Losses
The following table is a roll forward of our total allowance for loan losses for the three months ended March 31, 2026 and the twelve months ended December 31, 2025 (in thousands):
March 31, 2026December 31, 2025
Balance at beginning of year$454 $13,520 
Current period provision for loan loss— 300 
Initial allowance for credit losses on loans purchased with credit deterioration ("PCD") — 99,039 
Write-offs of the allowance(154)(40,779)
Current period recoveries — (71,626)
Balance at end of period$300 $454 
Schedule of Carrying Value of Debt and Preferred Equity Investment Portfolio by Year of Origination and Risk Rating
The following table sets forth the carrying value of our consolidated debt and preferred equity investment portfolio by year of origination and risk rating as of March 31, 2026 and December 31, 2025 (dollars in thousands):
As of March 31, 2026
Risk Rating
2026 (1)
2025 (1)
2024 (1)
2023 (1)
2022 (1)
Prior (1)
Total
1 - Low Risk Assets - Low probability of loss
$— $— $— $— $— $20,000 $20,000 
2 - Watch List Assets - Higher potential for loss
— — — — — 98,083 98,083 
3 - High Risk Assets - Loss more likely than not
— — — — — — — 
$— $— $— $— $— $118,083 $118,083 
(1)Year in which the investment was originated or acquired by us or in which a material modification occurred.
As of December 31, 2025
Risk Rating
2025 (1)
2024 (1)
2023 (1)
2022 (1)
2021 (1)
Prior (1)
Total
1 - Low Risk Assets - Low probability of loss
$— $— $— $— $— $20,000 $20,000 
2 - Watch List Assets - Higher potential for loss
— — — — — 148,358 (2)148,358 
3 - High Risk Assets - Loss more likely than not
— — — — — — — 
$— $— $— $— $— $168,358 $168,358 
(1)Year in which the investment was originated or acquired by us or in which a material modification occurred.
(2)Includes one investment with a total carrying value of $50.3 million as of December 31, 2025, that was included in the Company's alternative strategy portfolio.