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Fair Value (Tables)
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis The following table presents financial assets that were accounted for at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 by level within the fair value hierarchy (dollars in thousands):
June 30, 2020December 31, 2019
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Investments in unconsolidated ventures - PE Investments$—  $124  $6,969  $7,093  $—  $1,425  $8,858  $10,283  
Real estate securities, available for sale—  60,010  —  60,010  —  252,824  —  252,824  
Mortgage loans held in securitization trusts, at fair value—  —  1,839,953  1,839,953  —  —  1,872,970  1,872,970  
Other assets - derivative assets—  7  7  —  4,122  —  4,122  
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value$—  $1,758,325  $—  $1,758,325  $—  $1,762,914  $—  $1,762,914  
Other liabilities - derivative liabilities—  44  —  44  —  19,133  —  19,133  
Schedule of Changes in Level 3
The following table presents the changes in fair value of financial assets which are measured at fair value on a recurring basis using Level 3 inputs to determine fair value for the six months ended June 30, 2020 and year ended December 31, 2019 (dollars in thousands):
Six Months Ended June 30,Year Ended December 31, 2019
Investments in unconsolidated ventures - PE Investments
Mortgage loans held in securitization trusts(1)
Investments in unconsolidated ventures - PE Investments
Mortgage loans held in securitization trusts(1)
Beginning balance$8,858  $1,872,970  $160,851  $3,116,978  
Contributions(2)/purchases
—  —  151  —  
Distributions/paydowns(2,558) (13,138) (18,407) (55,288) 
Deconsolidation of securitization trust(3)
—  —  —  (1,239,627) 
Equity in earnings669  —  —  —  
Sale of investments—  —  (48,930) (39,848) 
Transfers out of Level 3—  (84,807) —  
Unrealized gain (loss) in earnings—  (19,879) —  87,983  
Realized gain in earnings—  —  2,772  
Ending balance$6,969  $1,839,953  $8,858  $1,872,970  
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(1)For the six months ended June 30, 2020, the Company recorded an unrealized loss of $19.9 million related to mortgage loans held in securitization trusts, at fair value and an unrealized loss of $8.5 million related to mortgage obligations issued by securitization trusts, at fair value.
(2)Includes initial investments, before distribution and contribution closing statement adjustments, and subsequent contributions, including deferred purchase price fundings.
(3)In July 2019, the Company sold its retained investments in the subordinate tranches of one securitization trust. As a result of the sale, the Company deconsolidated one of the securitization trusts. See Note 5, “Real Estate Securities, Available for Sale” for further information.
Summary of Principal Amount, Carrying Value and Fair Value of Financial Assets and Liabilities
The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities as of June 30, 2020 and December 31, 2019 (dollars in thousands):
June 30, 2020December 31, 2019
Principal AmountCarrying ValueFair ValuePrincipal AmountCarrying ValueFair Value
Financial assets:(1)
Loans and preferred equity held for investment, net$2,301,950  $2,242,574  (2)$2,250,148  $2,858,423  (2)$2,576,332  $2,470,561  
Financial liabilities:(1)
Securitization bonds payable, net$840,423  $834,088  $840,423  $840,423  $833,153  $840,423  
Mortgage and other notes payable, net1,179,074  1,174,146  1,178,315  1,260,267  1,256,112  1,260,675  
Master repurchase facilities900,173  900,173  900,173  1,099,233  1,099,233  1,099,233  
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(1)The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.
(2)Excludes future funding commitments of $205.0 million and $276.6 million as of June 30, 2020 and December 31, 2019, respectively.
Fair Value Measurements, Nonrecurring
The following table summarizes assets carried at fair value on a nonrecurring basis as of June 30, 2020 and December 31, 2019 (dollars in thousands):
June 30, 2020December 31, 2019
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Loans and preferred equity held for investment, net$—  $—  $2,242,574  $2,242,574  $—  $—  $104,797  $104,797  
Loans held for sale—  —  104,900  104,900  —  —  5,016  5,016  
Real estate, net—  —  —  —  —  —  448,690  448,690  
Real estate assets held for sale—  —  154,226  154,226  —  —  134,966  134,966  
Investments in unconsolidated ventures—  —  —  —  —  —  211,024  211,024  
Deferred leasing costs and intangible assets, net—  —  —  —  —  —  42,122  42,122  
The following table summarizes the fair value write-downs to assets carried at nonrecurring fair values during the periods presented (dollars in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Loans:
Loans and preferred equity held for investment, net$5,117  $—  $38,493  $—  
Loans held for sale32,840  —  69,415  —  
Total$37,957  $—  $107,908  $—  
Real Estate:
Real estate, net$—  $10,124  $—  $10,124  
Real estate held for sale25,935  —  30,061  —  
Total$25,935  $10,124  $30,061  $10,124