During the year ended December 31, 2025, the Company acquired one multifamily property located in Kansas City, MO (the “Arbor Mist property”) and one office property located in Charlotte, NC (the “Parkview property”), through non-judicial foreclosure transactions. The properties previously collateralized two senior loans. The acquisitions were accounted for as asset acquisitions under applicable GAAP guidance. The properties were recorded on the Company’s consolidated balance sheet based on the estimated fair value at acquisition. The Company’s fair market value estimate was determined based on appraisals performed by independent third-party appraisers.

The following table shows additional information about the acquisitions, including the fair value of the assumed assets and liabilities on the acquisition dates:


	Arbor Mist		Parkview
Acquisition date	May 1, 2025		July 2, 2025
Number of properties	1		1
Location	Kansas City, MO		Charlotte, NC
Property type	Multifamily		Office
Amortized cost basis of loan as of acquisition date	$	38,933	$	22,892
CECL reserve as of acquisition date	$	68	$	2,311
Loan risk rating as of acquisition date	5		5
CECL reserve charge-off upon acquisition	$	68	$	2,311

Land	$	1,778	$	6,620
Building and improvements		35,123		10,733
Furniture, fixtures and equipment		1,185		—
Acquired in-place lease value		773		2,866
Acquired above-market lease value		—		231
Acquired below-market lease value		—		(325	)
Total	$	38,859	$	20,125

During the year ended December 31, 2024, the Company acquired legal title to two office properties, one located in Addison, TX (the “Belvedere property”), and the other located in Irving, TX (the “Meridian property”), and one multifamily property located in Portland, OR (the “Fitz property”) through non-judicial foreclosure transactions. The properties previously collateralized two senior loans. The acquisitions were accounted for as asset acquisitions under applicable GAAP guidance, and the Company intends to hold these properties as real estate held for use with the intent to eventually sell when the market improves. The properties were recorded on the Company’s consolidated balance sheet based on the estimated fair value at acquisition. The Company’s fair market value estimate was determined based on appraisals performed by independent third-party appraisers.

The following table shows additional information about the acquisitions, including the fair value of the assumed assets and liabilities on the acquisition dates:


	Belvedere and Meridian			Fitz
Acquisition date	July 2, 2024			October 23, 2024
Number of properties	2			1
Location	Addison and Irving, TX			Portland, OR
Property type	Office			Multifamily
Amortized cost basis of loan as of acquisition date	$	24,411		$	29,476
CECL reserve as of acquisition date	$	281		$	9,884
Loan risk rating as of acquisition date	5			5
CECL reserve charge-off upon acquisition	$	855		$	9,577

Land	$	3,858		$	1,975
Building and improvements		17,071			16,989
Furniture, fixtures and equipment		—			343
Acquired in-place lease value		3,526			285
Acquired above-market lease value		31			—
Acquired below-market lease value		(451	)		—
Total	$	24,035		$	19,592

The following table presents the REO assets as of December 31, 2025 and 2024:


	December 31,			December 31,
	2025			2024
Land	$	14,231		$	5,833
Building and improvements		80,769			34,122
Furniture, fixtures and equipment		1,667			343
Accumulated depreciation		(3,385	)		(665	)
Real estate owned, net	$	93,282		$	39,633

During the years ended December 31, 2025 and 2024, the Company incurred $2,720 and $665 of depreciation expense, respectively.

The following table summarizes the Company’s identified intangible assets and liabilities as of December 31, 2025 and 2024:


	December 31, 2025			December 31, 2024
Intangible assets:
Acquired in-place lease value	$	7,450		$	3,811
Acquired above-market lease value		262			31
Accumulated amortization		(3,609	)		(873	)
Acquired lease intangible assets, net	$	4,103		$	2,969
Intangible liabilities:
Acquired below-market lease value	$	776		$	451
Accumulated amortization		(178	)		(47	)
Acquired lease intangible liabilities, net	$	598		$	404

As of December 31, 2025, the remaining weighted-average amortization period for the acquired in-place lease intangibles of the properties acquired during the year ended December 31, 2025 was 4.1 years.

Amortization pertaining to acquired in-place lease value, above-market lease value and below-market lease value is summarized below:


	Year Ended December 31, 2025			Year Ended December 31, 2024
Amortization recorded as amortization expense:	$	2,682		$	862
Acquired in-place lease value	$	2,682		$	862
Amortization recorded as a (reduction) increase to rental income:
Acquired above-market leases	$	(54	)	$	(11	)
Acquired below-market leases		131			47
Net rental income increase	$	77		$	36

Estimated amortization of the respective intangible lease assets and liabilities as of December 31, 2025 for each of the five succeeding years and thereafter is as follows:


	In-Place Leases		Above-Market Leases		Below-Market Leases
2026	$	1,298	$	73	$	160
2027		1,058		61		153
2028		709		34		123
2029		373		9		88
2030		227		7		56
Thereafter		239		15		18
Total	$	3,904	$	199	$	598

The table below presents the future minimum lease payments to be received under non-cancelable operating leases, excluding tenant reimbursements of expenses, and assuming no expiring leases are renewed, as of December 31, 2025. Leases for the multifamily properties are generally 12 months or less and are therefore excluded from the table below.


	Lease Payments
2026	$	4,647
2027		4,303
2028		3,471
2029		2,595
2030		2,047
Thereafter		1,874
Total	$	18,937

On September 28, 2023, the Company sold the Renaissance O’Hare property for net proceeds of $11,942 and recorded a gain of $206 on the sale. During May 2023, the Company had recorded an impairment charge of $6,934, which is reflected in the provision for asset impairment on the consolidated statement of operations during the year ended December 31, 2023.