Investment in Commercial Loan

9 Months Ended

Sep. 30, 2022

Real Estate [Abstract]

Investment in Commercial Loan

Investment in Commercial Loan

On September 1, 2022, we originated a floating rate mezzanine loan to partially finance the acquisition of an industrial property in Philadelphia, Pennsylvania for $21.8 million with a coupon rate of Term SOFR plus 3.3% and a maturity date of August 31, 2024. As of September 30, 2022, the loan has a principal balance of $21.8 million. We account for the loan under the fair value option and, accordingly, there are no capitalized origination costs or fees associated with the loan.

For the three and nine months ended September 30, 2022, we recognized interest income and loan origination fee income from our investment in commercial loan of $0.7 million in our condensed consolidated statements of operations.

For the three and nine months ended September 30, 2022, we did not record an unrealized gain or loss on the investment in commercial loan in our condensed consolidated statements of operations.

For the three and nine months ended September 30, 2021, we did not have an investment in a commercial loan.