Investment in Real Estate Debt

6 Months Ended

Jun. 30, 2023

Real Estate [Abstract]

Investment in Real Estate Debt

5. Investment in Real Estate Debt

The following table details the Company’s investment in real estate debt ($ in thousands):

June 30, 2023

December 31, 2022

Real Estate Debt

Number of Positions

Credit Rating

Coupon

Maturity Date

Cost Basis

Fair Value

Cost Basis

Fair Value

Mezzanine loan

1

Not Rated

SOFR + 5.22%

September 7, 2024

$

16,825

$

16,825

$

16,825

$

16,825

On September 2, 2022, the Company acquired a $26.8 million mezzanine loan ("Mezzanine Loan") and, concurrent with the acquisition, sold a $10 million pari passu participation interest to an affiliate of the Adviser. The sale of the participating interest met the criteria to be classified as an accounting sale, and not a financing, as the Company did not retain a controlling interest in the loan. The loan financed the acquisition of a garden-style multifamily property located in Murfreesboro, Tennessee. The Mezzanine Loan is an interest only loan and was fully funded as of the acquisition date. The loan has a stated maturity of September 7, 2024 and includes up to three one-year extension options.

The following table details the amounts recognized for the Company's investment in real estate debt ($ in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Interest income	$	431	$	—	$	841	$	—
Total income from investment in real estate debt	$	431	$	—	$	841	$	—