Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Commitments and contingencies may arise in the ordinary course of business. Our material off-balance sheet commitments and contingencies as of September 30, 2022 are discussed below.

As discussed in Note 4 — “Investments in Unconsolidated Entities”, we have committed to fund improvements to a multifamily property owned by San Simeon Holdings. We are required to fund our commitment as requested through December 31, 2023. As of September 30, 2022, our undrawn capital commitment was $0.9 million.

We have also committed to fund up to $3.5 million of tenant improvements at our Willows Facility through December 31, 2022. As of September 30, 2022, we have funded $3.1 million.

We have entered into a subscription agreement with Invesco Commercial Mortgage Income - U.S. Fund, L.P. (“CMI”), an affiliate of Invesco managed by our Adviser, for a commitment of $30.0 million. CMI primarily originates and acquires real estate-related debt with underlying properties located throughout the United States. On October 3, 2022, $15.0 million of our capital commitment in this affiliate was called and funded.

As of September 30, 2022 and December 31, 2021, we were not subject to any material litigation or aware of any pending or threatened material litigation.