Fair Value Measurements (Tables)

The following table details our financial instruments measured at fair value on a recurring basis:


	September 30, 2024
	Fair Value Measurements Using:
in thousands	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total at Fair Value
Investments in real estate-related securities	$	6,207	$	34,352	$	—	$	—	$	40,559
Investments in commercial loans	—		—		12,972		—		12,972
Investment in affiliated fund	—		—		—		22,869		22,869
Interest rate caps	—		832		—		—		832
Interest rate swap	—		758		—		—		758
Total	$	6,207	$	35,942	$	12,972	$	22,869	$	77,990


	December 31, 2023
	Fair Value Measurements Using:
in thousands	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total at Fair Value
Investments in real estate-related securities	$	4,729	$	23,301	$	—	$	—	$	28,030
Investments in commercial loans	—		—		34,626		—		34,626
Investment in affiliated fund	—		—		—		27,717		27,717
Interest rate caps	—		3,320		—		—		3,320
Interest rate swap	—		1,498		—		—		1,498
Total	$	4,729	$	28,119	$	34,626	$	27,717	$	95,191


in thousands	Investments in Commercial Loans
Balance as of December 31, 2023	$	34,626


Net unrealized gain	146
Loan repayment	(21,800)
Balance as of September 30, 2024	$	12,972

The following table shows the significant unobservable inputs related to the Level 3 fair value measurement of our investment in the commercial loan as of September 30, 2024.

Type

Asset Class

Valuation Technique

Unobservable Input

Weighted Average Rate

Commercial loan

Industrial

Discounted cash flow

Discount rate

8.50%

The following table presents the principal balance and estimated fair value of our liabilities that are not carried at fair value on the condensed consolidated balance sheets:


	September 30, 2024				December 31, 2023
in thousands	Principal Balance		Estimated Fair Value		Principal Balance		Estimated Fair Value

Mortgage notes payable	$	339,294	$	335,089	$	339,034	$	333,605
Total	$	339,294	$	335,089	$	339,034	$	333,605