Commercial Loan Investments

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Commercial Loan Investments

NOTE 3. COMMERCIAL LOAN INVESTMENTS

On September 24, 2015, the Company originated a $14.5 million first mortgage loan secured by a hotel in San Juan, Puerto Rico. The loan matures in September 2018 and bears a floating interest rate of 30-day London Interbank Offer Rate (“LIBOR”) plus 900 basis points, of which 700 basis points are payable currently and 200 basis points accrue over the term of the loan. At closing, a loan origination fee of approximately $181,000 was received by the Company and is being accreted ratably into income through the contractual maturity date.

As of September 30, 2015, the Company owned four performing commercial loan investments which have an aggregate outstanding principal balance of approximately $38.5 million. These loans are secured by real estate, or the borrower’s equity interest in real estate, located in Dallas, Texas, Sarasota, Florida, Atlanta, Georgia, and San Juan, Puerto Rico and have an average remaining maturity of approximately 2.0 years and a weighted average interest rate of 8.8%.

NOTE 3. COMMERCIAL LOAN INVESTMENTS (continued)

The Company’s commercial loan investment portfolio was comprised of the following at September 30, 2015:

Description	Date of Investment	Maturity Date	Original Face Amount		Current Face Amount		Carrying Value		Coupon Rate
Mezz – Hotel – Atlanta, GA	January 2014	February 2019	$	5,000,000	$	5,000,000	$	5,000,000		12.00%
B-Note – Retail Shopping Center, Sarasota, FL	May 2014	June 2016		8,960,467		8,960,467		8,960,467	30-day LIBOR plus 7.50%
Mezz – Hotel, Dallas, TX	September 2014	September 2016		10,000,000		10,000,000		10,000,000	30-day LIBOR plus 7.25%
First Mortgage –Hotel, San Juan, Puerto Rico	September 2015	September 2018		14,500,000		14,500,000		14,354,683	30-day LIBOR plus 9.00%
Total			$	38,460,467	$	38,460,467	$	38,315,150

The carrying value of the commercial loan investment portfolio as of September 30, 2015 consisted of the following:

	Total
Current Face Amount	$	38,460,467
Unamortized Fees		34,777
Unaccreted Origination Fees		(180,094	)
Total Commercial Loan Investments	$	38,315,150

The Company’s commercial loan investment portfolio was comprised of the following at December 31, 2014:

Description	Date of Investment	Maturity Date	Original Face Amount		Current Face Amount		Carrying Value		Coupon Rate
Mezz – Hotel, Atlanta, GA	January 2014	February 2019	$	5,000,000	$	5,000,000	$	5,000,000		12.00%
Construction – Container Store,    Glendale, AZ	May 2014	November 2015		6,300,000		5,306,031		5,247,607		6.00%
B-Note – Retail Shopping Center,    Sarasota, FL	May 2014	June 2015		8,960,467		8,960,467		8,960,467	30-day LIBOR plus 7.25%
Mezz – Hotel, Dallas, TX	September 2014	September 2016		10,000,000		10,000,000		10,000,000	30-day LIBOR plus 7.25%
Development – Real Estate, Ormond    Beach, FL	November 2014	November 2015		1,000,000		1,000,000		1,000,000	30-day LIBOR plus 7.25%
Total			$	31,260,467	$	30,266,498	$	30,208,074

The carrying value of the commercial loan investment portfolio as of December 31, 2014 consisted of the following:

	Total
Current Face Amount	$	30,266,498
Unaccreted Origination Fees		(58,424	)
Total Commercial Loan Investments	$	30,208,074