On February 8, 2021, the Company acquired legal title to a portfolio of hotel properties located in New York, NY through a Uniform Commercial Code foreclosure. Prior to February 8, 2021, the hotel portfolio represented the collateral for a $103.9 million mezzanine loan held by the Company which was in default as a result of the borrower failing to pay debt service. Following acquisition, the portfolio of hotel properties remained encumbered by a $300.0 million securitized senior mortgage held by a third party. The securitized senior mortgage is non-recourse to the

Company. The Company recorded a gain of $1.4 million resulting from the foreclosure of the loan, which was based upon the estimated fair value of the hotel properties as determined by a third-party appraisal. The fair value of $414.0 million was determined using discount rates ranging from 8.50% to 8.75% and a terminal capitalization rate of 6.00%.

On June 2, 2021, terms of the securitized senior mortgage were modified to include an extension of the maturity date to February 9, 2024, a principal repayment of $10.0 million, and the payment of $7.6 million of fees and modification costs, which included among other items, $6.3 million of interest expense, $1.1 million of general and administrative expenses, and $0.2 million of debt issuance costs.

The following table presents additional detail related to the Company’s real estate owned, net as of December 31, 2021 (dollars in thousands):



	December 31, 2021
Land	$	123,100
Building		284,400
Furniture, fixtures and equipment		6,500
Real estate assets		414,000
Less: accumulated depreciation		(7,113	)
Real estate owned, net	$	406,887

The following table presents additional detail related to the Company’s real estate portfolio for the period from February 8, 2021 through December 31, 2021 (dollars in thousands):

	Period from February 8, 2021 through December 31, 2021
Operating revenues	$	27,984
Operating expenses		(25,081	)
Depreciation		(7,113	)
Net operating loss from real estate owned	$	(4,210	)