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Notes Receivable and Current Expected Credit Losses (Tables)
9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Summary of Mezzanine Loans
The Company had the following notes receivable outstanding as of September 30, 2021 and December 31, 2020 ($ in thousands):
Outstanding loan amountInterest compounding
Development ProjectSeptember 30,
2021
December 31,
2020
Maximum loan commitmentInterest rate
Delray Beach Plaza$— $14,289 $17,000 15.0 %
(a)
Annually
Interlock Commercial92,254 85,318 107,000 15.0 %
(b)
None
Nexton Multifamily18,549 — 22,315 11.0 %Annually
Solis Apartments at Interlock— 28,969 41,100 13.0 %Annually
Total mezzanine110,803 128,576 $187,415 
Other notes receivable7,124 6,809 
Notes receivable guarantee premium1,631 2,631 
Allowance for credit losses(1,394)
(c)
(2,584)
Total notes receivable$118,164 $135,432 
________________________________________
(a) Loan was placed on nonaccrual status effective April 1, 2020.
(b) $3.0 million of this loan is subject to an interest rate of 18%.
(c) The amount excludes $0.1 million of CECL allowance that relates to the unfunded commitments, which was recorded as a liability under Other Liabilities in our consolidated balance sheet.
Summary of Interest Income The Company recognized interest income for the three and nine months ended September 30, 2021 and 2020 as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
Development Project2021202020212020
The Residences at Annapolis Junction$— $— 
(a)
$— $2,468 
(a)(b)
Delray Beach Plaza— — 
(a)
— 
(a)
489 
(a)
Nexton Multifamily397 — 658 — 
Nexton Square— 380 — 1,177 
Interlock Commercial3,260 
(b)
3,189 
(b)
9,644 
(b)
9,364 
(b)
Solis Apartments at Interlock— 847 4,005 
(c)
2,522 
Total mezzanine3,657 4,416 14,307 16,020 
Other interest income109 321 35 
Total interest income$3,766 $4,417 $14,628 $16,055 
________________________________________
(a) Loan was placed on nonaccrual status effective April 1, 2020.
(b) Includes recognition of interest income related to an exit fee that is due upon repayment of the loan.
(c) Includes prepayment premium of $2.4 million from early payoff of the loan.
Allowance for Credit Losses on Financing Receivables Changes in the allowance for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Beginning balance $2,129 $3,085 $2,584 $— 
Cumulative effect of accounting change— — — 2,825 
Unrealized credit loss provision (release)(617)(33)(284)227
Extinguishment due to acquisition— — (788)— 
Ending balance (a)
$1,512 $3,052 $1,512 $3,052 
________________________________________
(a) The amount as of September 30, 2021 includes $0.1 million of allowance related to the unfunded commitments, which was recorded as Other liabilities on the Consolidated Balance Sheet.