Investment in Real Estate Debt

6 Months Ended

Jun. 30, 2024

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, 2024

December 31, 2023

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(1) + 5.22%

September 7, 2024

$

16,825

$

16,825

$

16,825

$

16,825

(1) 30-day SOFR at both June 30, 2024 and December 31, 2023 was 5.34% per annum.

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 Mezzanine Loan has a stated maturity of September 7, 2024 and includes up to three one-year extension options at the borrower’s request.

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

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2024			2023		2024			2023
Interest income	$	448		$	431	$	897		$	841
Other income (expense), net		(3	)		—		(6	)		—
Total income from investment in real estate debt	$	445		$	431	$	891		$	841