XML 40 R30.htm IDEA: XBRL DOCUMENT v3.23.2
Notes Receivable and Current Expected Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Summary of Notes Receivable Outstanding
The Company had the following notes receivable outstanding as of June 30, 2023 and December 31, 2022 ($ in thousands):
Outstanding loan amountInterest compounding
Development ProjectJune 30,
2023		December 31,
2022		Maximum principal commitmentInterest rate
Solis City Park II$22,828 
(a)
$19,062 
(a)
$20,594 13.0 %Annually
Solis Gainesville II19,327 
(a)
6,638 
(a)
19,595 14.0 %
(b)
Annually
Solis Kennesaw7,330 
(a)
— 37,870 14.0 %
(b)
Annually
The Interlock(c)
— 86,584 
(a)
107,000 
(d)
15.0 %None
Total mezzanine & preferred equity49,485 112,284 $185,059 
Constellation Energy Building note receivable— 12,834 
Other notes receivable11,849 
(a)
11,512 
(a)
Notes receivable guarantee premium— 701 
Allowance for credit losses(e)
(1,239)

(1,292)
Total notes receivable$60,095 $136,039 
________________________________________
(a) Outstanding loan amounts include any accrued and unpaid interest, and accrued exit fees, as applicable.
(b) The interest rate varies over the life of the loans, and the Company also earns an unused commitment fee. Refer below under “Solis Gainesville II” and “Solis Kennesaw” for further details.
(c) This note receivable was redeemed on May 19, 2023 in connection with the Company’s acquisition of The Interlock. Refer below under “The Interlock” for further details.
(d) This amount includes interest reserves.
(e) The amounts as of June 30, 2023 and December 31, 2022 exclude $0.6 million and $0.3 million of Current Expected Credit Losses (“CECL”) allowance that relates to the unfunded commitments, which were recorded as a liability under Other liabilities in the consolidated balance sheets.
Summary of Interest Income The Company recognized interest income for the three and six months ended June 30, 2023 and 2022 as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Development Project2023202220232022
Solis City Park II$732 
(a)
$206 
(a)
$1,402 
(a)
$224 
(a)
Solis Gainesville II654 
(a)(b)
— 1,247 
(a)(b)
— 
Solis Kennesaw465 
(a)
— 465 
(a)
— 
The Interlock1,374 
(a)
2,361 
(a)
3,647 
(a)
5,187 
(a)
Nexton Multifamily— 672 — 1,286 
Total mezzanine3,225 3,239 6,761 6,697 
Other interest income189 113 372 223 
Total interest income$3,414 $3,352 $7,133 $6,920 
________________________________________
(a) Includes recognition of interest income related to fee amortization.
(b) Includes recognition of unused commitment fees.
Allowance for Credit Losses on Financing Receivables Changes in the allowance for the six months ended June 30, 2023 and 2022 were as follows (in thousands):
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
 FundedUnfundedTotalFundedUnfundedTotal
Beginning balance $1,292 $338 $1,630 $994 $10 $1,004 
Unrealized credit loss provision (release)412 231 643 458 442 900 
Release due to redemption(465)— (465)— — — 
Ending balance$1,239 $569 $1,808 $1,452 $452 $1,904