REAL ESTATE LOANS, NET

3 Months Ended

Mar. 31, 2023

Investment in real estate loans, net is as follows (in thousands):


	March 31, 2023		December 31, 2022
Real estate loan	$	1,250	$	1,250
Allowance for credit losses	(1,000)		(1,250)

	$	250	$	—

On June 29, 2018, we sold the Holiday Inn in Duluth, GA and the Hilton Garden Inn in Duluth, GA for an aggregate selling price of $24.9 million. We provided seller financing totaling $3.6 million on the sale of these properties under two, 3.5-year second mortgage notes with a blended interest rate of 7.38% that are further collateralized by a personal guarantee from the principal of the borrower. During the year ended December 31, 2020, we recorded an allowance for credit losses in an amount equal to the outstanding balance of the loans due to a borrower default caused by the negative effects of the COVID-19 pandemic. On June 1, 2021, we amended the terms of the seller-financing loans and extended the maturity dates of each loan to December 31, 2022. Under the modified loan terms, interest accrues monthly at a rate of 9.00% per annum, including 5.00% payable in cash and 4.00% paid-in-kind.

On September 15, 2022, we received a $0.6 million payment to repay one of the two loans in full. We also extended the maturity date of the remaining loan to December 31, 2023. During the year ended December 31, 2022, the remaining loan and underlying collateral were transferred to the control of the estate of the principal borrower who was also the personal guarantor on the loan. The outstanding principal balance of the remaining seller-financing loan continues to be fully reserved pending further performance by the borrower under the modified terms of the loan. In April 2023, we received a scheduled principal payment of $0.3 million on the loan.

The seller-financing loan,net is included in Prepaid expenses and other in our Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022.