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Commitments and Contingencies
 9 Months Ended
Sep. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Lending Commitments
The Company has lending commitments to borrowers pursuant to certain loan agreements in which the borrower may submit a request for funding contingent on achieving certain criteria, which must be approved by the Company as lender, such as leasing, performance of capital expenditures and construction in progress with an approved budget. At September 30, 2025, assuming the terms to qualify for future fundings, if any, had been met, total unfunded lending commitments for loans held for investment were $97.8 million for senior loans, $2.1 million for mezzanine loans and $5.6 million for preferred equity. At December 31, 2024, total unfunded lending commitments for loans held for investment were $105.2 million for senior loans and $1.1 million for mezzanine loans.
Ground Lease Obligation
The Company’s operating leases include ground leases acquired with real estate.
At September 30, 2025 and December 31, 2024, the weighted average remaining lease term was 11.8 years and 12.0 years for ground leases, respectively.
The following table presents ground lease expense, included in property operating expense, for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Operating lease expense:
Minimum lease expense$797 $790 $2,395 $2,366 
Variable lease expense— — — — 
$797 $790 $2,395 $2,366 
The operating lease liability for ground leases was determined using a weighted average discount rate of 5.4%. The following table presents future minimum rental payments, excluding contingent rents, on noncancellable ground leases on real estate as of September 30, 2025 (dollars in thousands):
Remainder of 2025$797 
20263,186 
20272,868 
20282,839 
20291,896 
2030 and thereafter12,263 
Total lease payments23,849 
Less: Present value discount6,793 
Operating lease liability (Note 6)$17,056 
For these ground leases, the Company has elected the practical expedient to combine lease and related nonlease components as a single lease component.
Office Lease
At September 30, 2025 and December 31, 2024, the weighted average remaining lease term was 3.6 years and 4.3 years for office leases, respectively. The office leases are located in New York, New York and Los Angeles, California.
For the nine months ended September 30, 2025 and 2024, the following table summarizes lease expense, included in operating expense (dollars in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Corporate Offices
Operating lease expense:
   Fixed lease expense$328 $315 $979 $944 
   Variable lease expense— — — — 
$328 $315 $979 $944 
Total cash paid for office leases was $0.4 million for the three months ended September 30, 2025 and September 30, 2024, respectively, and $1.0 million for the nine months ended September 30, 2025 and September 30, 2024, respectively.
The operating lease liability for the office leases was determined using a weighted average discount rate of 2.4%. As of September 30, 2025, the Company’s future operating lease commitments for the corporate office leases were as follows (dollars in thousands):
Corporate Offices
Remainder of 2025$328 
20261,323 
20271,339 
20281,155 
2029574 
2030 and thereafter— 
  Total lease payments4,719 
Less: Present value discount202 
  Operating lease liability (Note 6)$4,517 

For these office leases, the Company has elected the practical expedient to combine lease and related nonlease components as a single lease component.
Litigation and Claims
The Company may be involved in litigation and claims in the ordinary course of the business. As of September 30, 2025, the Company was not involved in any legal proceedings that are expected to have a material adverse effect on the Company’s results of operations, financial position, or liquidity.