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Investment in Real Estate-Related Loan
 6 Months Ended
Jun. 30, 2020
Investment in Real Estate-Related Loan [Abstract]  
Investments in Real Estate-Related Loans
6. Investments in Real Estate-Related Loans and Securities
During the six months ended June 30, 2020, the Company invested $29.4 million into floating-rate CMBS, which were collateralized by pools of commercial real estate debt. For the six months ended June 30, 2020, the Company recognized $0.4 million of interest income related to such floating-rate CMBS. There was no interest income recognized during the six months ended June 30, 2019 as the Company did not hold any floating-rate CMBS in prior years. The
COVID-19
pandemic caused significant market volatility in 2020, causing a broad-based market decline impacting the unrealized value of certain of the Company’s CMBS.
The following table details the Company’s floating-rate CMBS as of June 30, 2020:
 
Investment
 
Collateral
 
Interest
Rate
(1)
 
Maturity
Date
 
 
Payment
Terms
 
Face

Amount
 
 
Cost
 
 
Unrealized
Gain / (Loss)
(2)
 
 
Carrying
Amount
 
BX 2020 BXLP G
 
International Markets Center and AmericasMart Atlanta
 
L+2.50%
 
 
12/15/36
 
 
Principal due at maturity
 
$
10,827,000
 
 
$
10,827,000
 
 
$
(487,215
) 
 
$
10,339,785
 
CGDB 2019 MOB F
 
Medical Office Mortgage Loans
 
L+2.55%
 
 
11/15/36
 
 
Principal due at maturity
 
 
4,000,000
 
 
 
4,005,000
 
 
 
(264,600
) 
 
 
3,740,400
 
BXMT 2020 FL 2
 
International Markets Center and AmericasMart Atlanta
 
L+1.95%
 
 
2/16/37
 
 
Principal due at maturity
 
 
4,000,000
 
 
 
4,000,000
 
 
 
(359,168
) 
 
 
3,640,832
 
BX 2019 IMC G
 
International Markets Center and AmericasMart Atlanta
 
L+3.60%
 
 
4/15/34
 
 
Principal due at maturity
 
 
3,700,000
 
 
 
2,493,923
 
 
 
493,841
 
 
 
2,987,764
 
BHMS 2018 ATLS D
 
Atlantis Paradise Island Resort
 
L+2.25%
 
 
7/15/35
 
 
Principal due at maturity
 
 
1,998,000
 
 
 
1,399,098
 
 
 
347,526
 
 
 
1,746,624
 
BHMS 2018 ATLS E
 
Atlantis Paradise Island Resort
 
L+3.00%
 
 
7/15/35
 
 
Principal due at maturity
 
 
1,550,000
 
 
 
999,750
 
 
 
314,259
 
 
 
1,314,009
 
BX 2020 VIVA D
 
MGM Grand and Mandalay Bay Resort and Casino Las Vegas
 
3.67%
 
 
3/9/44
 
 
Principal due at maturity
 
 
4,680,982
 
 
 
3,901,172
 
 
 
288,602
 
 
 
4,189,774
 
BX 2020 VIVA E
 
MGM Grand and Mandalay Bay Resort and Casino Las Vegas
 
3.67%
 
 
3/9/44
 
 
Principal due at maturity
 
 
2,319,018
 
 
 
1,787,375
 
 
 
187,990
 
 
 
1,975,365
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
$
33,075,000
 
 
$
29,413,318
 
 
$
521,235
 
 
$
29,934,553
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
The term “L” refers to the
one-month
US dollar-denominated London Interbank Offer Rate (“LIBOR”). As of June 30, 2020 and December 31, 2019,
one-month
LIBOR was equal to 0.16% and 1.76%, respectively.
(2)
Unrealized gain/loss on floating rate debt security investments are determined using price quotations provided by independent third party valuation firms.
The following table details the Company’s real estate-related loan investments as of June 30, 2020 and December 31, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30, 2020
 
Investment
 
Collateral
 
Interest
Rate
(1)
 
Maturity Date
 
Payment
Terms
(2)
 
Prior Liens
 
Face Amount
 
 
Unamortized
Discount
 
 
Carrying
Amount
 
Atlantis Mezzanine Loan
 
Atlantis Paradise Island Resort
 
L+6.67%
 
July 202
1
 
Principal due at maturity
 
$1.525 billion
(3)
 
$
25,000,000
 
 
$
(15,474
) 
 
$
24,984,526
 
IMC/AMC Bond Investment
 
International Markets Center
AmericasMart Atlanta
 
L+6.15%
 
December 2023
 
Principal due at maturity
 
$1.643 billion
(4)
 
 
25,000,000
 
 
 
(292,094
) 
 
 
24,707,906
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
50,000,000
 
 
$
(307,568
) 
 
$
49,692,432
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
Investment
 
Collateral
 
Interest
Rate
(1)
 
Maturity Date
 
Payment
Terms
(2)
 
Prior Liens
 
Face Amount
 
 
Unamortized
Discount
 
 
Carrying
Amount
 
Atlantis Mezzanine Loan
 
Atlantis Paradise Island Resort
 
L+6.67%
 
July 202
1
 
Principal due at maturity
 
$1.525 billion
(3)
 
$
25,000,000
 
 
$
(367,510
) 
 
$
24,632,490
 
IMC/AMC Bond Investment
 
International Markets Center
AmericasMart Atlanta
 
L+6.15%
 
December 2023
 
Principal due at maturity
 
$1.643 billion
(4)
 
 
25,000,000
 
 
 
(334,691
) 
 
 
24,665,309
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
50,000,000
 
 
$
(702,201
) 
 
$
49,297,799
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
The term “L” refers to the
one-month
US dollar-denominated LIBOR. As of June 30, 2020 and December 31, 2019,
one-month
LIBOR was equal to 0.16% and 1.76%, respectively.
(2)
Neither investment is subject to delinquent principal or interest as of June 30, 2020 or December 31, 2019.
(3)
The Atlantis Mezzanine Loan is subordinate to a first mortgage loan of $1.20 billion and a $325 million senior mezzanine loan.
(4)
The IMC / AMC Bond Investment is subordinate to a $1.15 billion first mortgage on properties owned by IMC and a $493 million first mortgage on properties owned by AMC.
On June 14, 2019, the Company acquired a $25 million principal amount of a second loss mezzanine loan (the “Atlantis Mezzanine Loan”) by assuming ownership of a special purpose vehicle from an affiliate of Oaktree and contemporaneously borrowed under the Company’s Line of Credit to finance the investment. The Atlantis Mezzanine Loan is secured by the equity interests of the entity owning Atlantis Paradise Island Resort, a 2,917 room oceanfront resort located on Paradise Island in the Bahamas.
On July 9, 2020, the borrower on the Atlantis Mezzanine Loan exercised the option to extend the initial maturity of the loan by 12 months from July 2020 to July 2021. The borrower continues to have the option to extend the maturity of the loan by four additional 12-month periods, provided there has not been an event of default. The Atlantis Mezzanine Loan bears interest at a floating rate of 6.67% over the one-month LIBOR, subject to an interest rate increase in the event the borrower exercises its fourth 12-month extension option.
On September 4, 2019, the Company acquired a $25 million principal amount of bonds (the “IMC/AMC Bond Investment”) collateralized by a term loan (the “Term Loan”) by assuming ownership of a special purpose vehicle from an affiliate of Oaktree and contemporaneously borrowed $25 million under the Company’s Line of Credit to finance the investment. The Term Loan is cross-collateralized by and senior to equity interests of the owners in International Markets Center (“IMC”) and AmericasMart Atlanta (“AMC”). IMC and AMC are two of the leading national furniture showroom companies with a combined 14.4 million square feet of showroom space located in Las Vegas, Nevada, High Point, North Carolina and Atlanta, Georgia.
The Term Loan matures in December 2023. The IMC/AMC Bond Investment bears interest at a floating rate of 6.15% over
the one-month London
Interbank Offered Rate.