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Loans Receivable
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Loans Receivable
Loans Receivable
The Account’s loan receivable portfolio is primarily comprised of mezzanine loans secured by the borrower’s indirect interest in commercial real estate. Mezzanine loans are subordinate to first mortgages on the underlying real estate collateral. The following property types represent the underlying real estate collateral for the Account's mezzanine loans (millions):
 
 
December 31, 2019
 
December 31, 2018
 
 
Fair Value
 
%
 
Fair Value
 
%
Office(1)
 
$
768.0

 
48.8
%
 
$
512.1

 
56.2
%
Industrial
 
199.6

 
12.7
%
 
176.4

 
19.3
%
Retail
 
158.5

 
10.1
%
 
101.6

 
11.1
%
Storage
 
82.0

 
5.2
%
 
63.2

 
6.9
%
Apartments(1)
 
228.8

 
14.6
%
 
59.7

 
6.5
%
Hotel
 
135.2

 
8.6
%
 
—

 
—
%
 
 
$
1,572.1

 
100.0
%
 
$
913.0

 
100.0
%
(1) Includes loans receivable with related parties.
The Account monitors the risk profile of the loan receivable portfolio with the assistance of a third-party rating service that models the loans and assigns risk ratings based on information provided by TIAA, such as loan-to-value ratios, yields, credit quality of the borrowers, property types of the collateral, geographic and local market dynamics, physical condition of the collateral, and the underlying structure of the loans. Ratings for loans are updated monthly. Assigned ratings can range from AAA to C, with a AAA designation representing debt with the lowest level of credit risk and C representing a greater risk of default or principal loss. Mezzanine debt in good health is typically reflective of a risk rating in the B range (e.g., BBB, BB, B), as these ratings reflect borrowers' having adequate financial resources to service their financial commitments, but also acknowledging that adverse economic conditions, should they occur, would likely impede on a borrowers' ability to pay.
The following table presents the fair values of the Account's loan portfolio based on the risk ratings as of December 31, 2019, listed in order of the strength of the risk rating (from strongest to weakest):
 
 
Number of Loans
 
Fair Value
 
%
AA
 
1
 
48.3

 
3.1
%
BBB
 
7
 
456.1

 
29.0
%
BB
 
13
 
787.4

 
50.1
%
B
 
3
 
205.0

 
13.0
%
NR(1)
 
3
 
75.3

 
4.8
%
 
 
27
 
$
1,572.1

 
100.0
%
(1) "NR" designates loans not assigned an internal credit rating. As of December 31, 2019, this is comprised of two loans with related parties and one loan to an unaffiliated entity. The loans are collateralized by equity interests in real estate investments.
The Account had no loans in non-performing status as of December 31, 2019.