v3.25.4
Real Estate Owned (Tables)
 12 Months Ended
Dec. 31, 2025
Business Combination [Line Items]  
Schedule of Real Estate Owned Assets

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

 
Schedule of Intangible Assets and Liabilities

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

 
Schedule of Amortization Pertaining to Acquired in Place Lease Value, Above Market and Below Market Lease Value

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

 
Schedule of Estimated Amortization of Intangible Lease Assets and Liabilities

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

 

 
Schedule of Future Minimum Lease Payments to be Received Under Non-cancelable Operating Leases

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

 
2024 Acquisitions  
Business Combination [Line Items]  
Schedule of Fair Value of Assumed Assets and Liabilities on the Acquisition

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

 
Addison and Irving, Tx Acquisition  
Business Combination [Line Items]  
Schedule of Fair Value of Assumed Assets and Liabilities on the Acquisition

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

 

 

The Company recognized a net gain of $531 upon the foreclosure transactions, which represents total assets received, net of liabilities assumed, less carrying value of loans adjusted for interest, extension fee and CECL reserve. The net gain is reported on the accompanying consolidated statements of operations within net realized (loss) gain on disposition of commercial loans.

On July 14, 2025, the Company entered into a contract for sale of the Arbor Mist property for a purchase price of $40,100 and received $780 earnest money in escrow from the buyer on July 18, 2025. The buyer subsequently determined not to proceed with the transaction, resulting in termination of the contract and return of the earnest money to the buyer.