Real Estate Owned

9 Months Ended

Sep. 30, 2022

Note 13 – Real Estate Owned

The following table summarizes the Company’s real estate owned assets as of September 30, 2022:


Acquisition Date	Property Type	Primary Location(s)	Building and Improvements		Furniture, Fixtures and Equipment		Accumulated Depreciation			Real Estate Owned, Net
August 2020 (1)(2)	Hotel	Chicago, IL	$	26,683	$	6,995	$	(2,326	)	$	31,352

(1)

Refer to “Note 2 – Summary of Significant Accounting Policies” in the Annual Report for useful life of the above assets.

(2)

Represents assets acquired by the Company by completing a deed-in-lieu of foreclosure transaction.

During February 2021, the Company received a loan under the Paycheck Protection Program (“PPP”) related to the operations of the Company’s 362-room hotel located in Chicago, Illinois known as the Renaissance Chicago O’Hare Suites Hotel (the “Renaissance O’Hare”). This five-year loan was for $1,093 with a fixed interest rate of 1.00% that does not compound. The PPP was created as part of the Coronavirus Aid, Relief, and Economic Security Act and ended on May 31, 2021. To be eligible to receive a loan, companies had to make a number of certifications related to its operations, employees and size of the business on an application. Companies could subsequently apply for loan forgiveness under the program provided that it meets requirements limiting any reduction in workforce or in pay.

The Company was granted loan forgiveness by the U.S. Small Business Administration in December 2021. The Company accounted for this PPP loan using a government grant accounting approach. The grant proceeds were initially recorded in accrued expenses on the consolidated balance sheet. Each month, those proceeds were applied as a reduction to payroll-related costs within real estate owned operating expenses on the consolidated statement of operations until the proceeds have been fully absorbed by the payroll-related expenses. As of September 30, 2022, no balance remains recorded in accrued expenses for the PPP loan to be absorbed by payroll-related expenses.