v3.22.0.1
COVER PAGE - USD ($)
 12 Months Ended
Dec. 31, 2021
Feb. 14, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --12-31    
Document Period End Date Dec. 31, 2021    
Document Transition Report false    
Entity File Number 001-35517    
Entity Registrant Name ARES COMMERCIAL REAL ESTATE CORPORATION    
Entity Incorporation, State or Country Code MD    
Entity Tax Identification Number 45-3148087    
Entity Address, Address Line One 245 Park Avenue    
Entity Address, Address Line Two 42nd Floor    
Entity Address, City or Town New York    
Entity Address, State or Province NY    
Entity Address, Postal Zip Code 10167    
City Area Code 212    
Local Phone Number 750-7300    
Title of 12(b) Security Common Stock, $0.01 par value per share    
Trading Symbol ACRE    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 637,185,924
Entity Common Stock, Shares Outstanding   47,222,067  
Documents Incorporated by Reference Portions of the registrant’s Proxy Statement for its 2022 Annual Meeting of Stockholders to be filed not later than 120 days after the end of the fiscal year covered by this annual report on Form 10-K are incorporated by reference into Part III of this Form 10-K.    
Entity Central Index Key 0001529377    
Amendment Flag false    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
v3.22.0.1
AUDIT INFORMATION
 12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location Los Angeles, CA
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
ASSETS    
Cash and cash equivalents $ 50,615 $ 74,776
Loans held for investment ($974,424 and $550,590 related to consolidated VIEs, respectively) 2,414,383 1,815,219
Current expected credit loss reserve (23,939) (23,604)
Loans held for investment, net of current expected credit loss reserve 2,390,444 1,791,615
Real estate owned held for sale, net 36,602 37,283
Other assets ($2,592 and $1,079 of interest receivable related to consolidated VIEs, respectively; $128,589 and $6,410 of other receivables related to consolidated VIEs, respectively) 154,177 25,823
Total assets 2,631,838 1,929,497
LIABILITIES    
Secured funding agreements 840,047 755,552
Notes payable 50,358 61,837
Secured term loan 149,016 110,000
Collateralized loan obligation securitization debt (consolidated VIEs) 861,188 443,871
Secured borrowings 22,589 59,790
Due to affiliate 4,156 3,150
Dividends payable 16,674 11,124
Other liabilities ($570 and $391 of interest payable related to consolidated VIEs, respectively) 9,182 11,158
Total liabilities 1,953,210 1,456,482
Commitments and contingencies (Note 9)
STOCKHOLDERS' EQUITY    
Common stock, par value $0.01 per share, 450,000,000 shares authorized at December 31, 2021 and 2020 and 47,144,058 and 33,442,332 shares issued and outstanding at December 31, 2021 and 2020, respectively 465 329
Additional paid-in capital 703,950 497,803
Accumulated other comprehensive income 2,844 0
Accumulated earnings (deficit) (28,631) (25,117)
Total stockholders' equity 678,628 473,015
Total liabilities and stockholders' equity $ 2,631,838 $ 1,929,497
v3.22.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Loans held for investment $ 2,414,383 $ 1,815,219
Other assets 154,177 25,823
Other liabilities $ 9,182 $ 11,158
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 450,000,000 450,000,000
Common stock shares issued (in shares) 47,144,058 33,442,332
Common stock, shares outstanding (in shares) 47,144,058 33,442,332
Variable Interest Entity, Primary Beneficiary    
Loans held for investment $ 974,424,000 $ 550,590,000
Interest receivable 2,592,000 1,079,000
Other assets 128,589,000 6,410,000
Other liabilities $ 570,000 $ 391,000
v3.22.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenue:      
Interest income $ 133,631 $ 121,052 $ 114,784
Interest expense (50,080) (51,949) (62,583)
Net interest margin 83,551 69,103 52,201
Revenue from real estate owned 18,518 13,593 25,058
Total revenue 102,069 82,696 77,259
Expenses:      
Management and incentive fees to affiliate 12,136 8,159 7,363
Professional fees 2,436 2,640 2,194
General and administrative expenses 4,741 3,732 4,188
General and administrative expenses reimbursed to affiliate 3,016 3,653 3,026
Expenses from real estate owned 18,548 18,127 22,982
Total expenses 40,877 36,311 39,753
Provision for current expected credit losses 10 20,185 0
Realized losses on loans sold 0 4,008 0
Income before income taxes 61,182 22,192 37,506
Income tax expense, including excise tax 722 352 515
Net income attributable to common stockholders $ 60,460 $ 21,840 $ 36,991
Earnings per common share:      
Basic earnings (loss) per common share (in dollars per share) $ 1.43 $ 0.66 $ 1.29
Diluted earnings (loss) per common share (in dollars per share) $ 1.42 $ 0.66 $ 1.28
Weighted average number of common shares outstanding:      
Basic weighted average shares of common stock outstanding (in shares) 42,399,613 32,977,462 28,609,282
Diluted weighted average shares of common stock outstanding (in shares) 42,681,505 33,196,508 28,846,641
v3.22.0.1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net income attributable to common stockholders $ 60,460 $ 21,840 $ 36,991
Other comprehensive income:      
Unrealized gains (losses) on derivative financial instruments 2,844 0 0
Comprehensive income $ 63,304 $ 21,840 $ 36,991
v3.22.0.1
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Impact of adoption of CECL
Common Stock
Additional Paid-in Capital
AOCI Attributable to Parent
Accumulated Earnings (Deficit)
Accumulated Earnings (Deficit)
Impact of adoption of CECL
Accounting Standards Update [Extensible List] Accounting Standards Update 2016-13 [Member]            
Beginning Balance (in shares) at Dec. 31, 2018     28,755,665        
Beginning Balance at Dec. 31, 2018 $ 425,587   $ 283 $ 421,739   $ 3,565  
Increase (Decrease) in Stockholders' Equity              
Stock-based compensation (in shares)     109,945        
Stock-based compensation 1,880     1,880      
Other comprehensive income 0            
Net income 36,991         36,991  
Dividends declared (38,119)         (38,119)  
Ending Balance (in shares) at Dec. 31, 2019     28,865,610,000        
Ending Balance at Dec. 31, 2019 426,339 $ (5,051) $ 283 423,619 $ 0 2,437 $ (5,051)
Increase (Decrease) in Stockholders' Equity              
Sale of common stock (in shares)     4,600,000,000        
Sale of common stock 73,232   $ 46 73,186      
Offering costs (341)     (341)      
Stock-based compensation (in shares)     23,278,000        
Stock-based compensation 1,339     1,339      
Other comprehensive income 0            
Net income 21,840         21,840  
Dividends declared $ (44,343)         (44,343)  
Ending Balance (in shares) at Dec. 31, 2020 33,442,332   33,442,332,000        
Ending Balance at Dec. 31, 2020 $ 473,015   $ 329 497,803 0 (25,117)  
Increase (Decrease) in Stockholders' Equity              
Sale of common stock (in shares)     13,637,237,000        
Sale of common stock 204,779   $ 136 204,643      
Offering costs (436)     (436)      
Stock-based compensation (in shares)     64,489,000        
Stock-based compensation 1,940     1,940      
Other comprehensive income 2,844       2,844    
Net income 60,460         60,460  
Dividends declared $ (63,974)         (63,974)  
Ending Balance (in shares) at Dec. 31, 2021 47,144,058   47,144,058,000        
Ending Balance at Dec. 31, 2021 $ 678,628   $ 465 $ 703,950 $ 2,844 $ (28,631)  
v3.22.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating activities:      
Net income $ 60,460 $ 21,840 $ 36,991
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Amortization of deferred financing costs 9,895 6,434 6,569
Accretion of deferred loan origination fees and costs (8,433) (7,430) (7,013)
Stock-based compensation 1,940 1,339 1,880
Depreciation of real estate owned 825 892 667
Provision for current expected credit losses 10 20,185 0
Realized losses on loans sold 0 4,008 0
Changes in operating assets and liabilities:      
Other assets (18,545) (15,344) (6,435)
Due to affiliate 1,006 389 (402)
Other liabilities 1,192 (551) 195
Net cash provided by (used in) operating activities 48,350 31,762 32,452
Investing activities:      
Issuance of and fundings on loans held for investment (1,241,996) (524,166) (673,160)
Principal repayment of loans held for investment 534,973 341,450 492,884
Proceeds from sale of loans held for sale 0 96,597 0
Receipt of origination fees 7,632 4,526 7,536
Purchases of capitalized additions to real estate owned (144) (274) (1,686)
Payments under derivative financial instruments (150) 0 0
Net cash provided by (used in) investing activities (699,685) (81,867) (174,426)
Proceeds from secured funding agreements      
Payments of Financing Costs 13,066 5,065 5,731
Proceeds from notes payable 15,869 6,967 56,155
Repayments of notes payable (27,880) 0 0
Proceeds from issuance of debt of consolidated VIEs 540,471 0 172,673
Repayments of debt of consolidated VIEs (121,246) 0 0
Dividends paid (58,424) (42,765) (37,487)
Proceeds from sale of common stock 204,779 73,232 0
Payment of offering costs (324) (301) (84)
Net cash provided by (used in) financing activities 627,174 119,246 136,141
Change in cash and cash equivalents (24,161) 69,141 (5,833)
Cash and cash equivalents, beginning of period 74,776 5,635 11,468
Cash and cash equivalents, end of period 50,615 74,776 5,635
Supplemental Information:      
Interest paid during the period 40,126 46,137 54,595
Income taxes paid during the period 1,406 399 668
Supplemental disclosure of noncash investing and financing activities:      
Dividends declared, but not yet paid 16,674 11,124 9,546
Other receivables related to consolidated VIEs 128,589 6,410 41,104
Secured funding agreements      
Proceeds from secured funding agreements      
Proceeds from secured funding agreements 970,036 473,493 793,801
Repayments of secured funding agreements (885,541) (446,530) (843,186)
Secured term loan      
Proceeds from secured funding agreements      
Proceeds from secured funding agreements 90,000 0 0
Repayments of secured funding agreements (50,000) 0 0
Secured bowowings      
Proceeds from secured funding agreements      
Proceeds from secured funding agreements 0 60,215 0
Repayments of secured funding agreements $ (37,500) $ 0 $ 0
v3.22.0.1
ORGANIZATION
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION ORGANIZATION
Ares Commercial Real Estate Corporation (together with its consolidated subsidiaries, the “Company” or “ACRE”) is a specialty finance company primarily engaged in originating and investing in commercial real estate loans and related investments. Through Ares Commercial Real Estate Management LLC (“ACREM” or the Company’s “Manager”), a Securities and Exchange Commission (“SEC”) registered investment adviser and a subsidiary of Ares Management Corporation (NYSE: ARES) (“Ares Management” or “Ares”), a publicly traded, leading global alternative investment manager, it has investment professionals strategically located across the United States and Europe who directly source new loan opportunities for the Company with owners, operators and sponsors of commercial real estate (“CRE”) properties. The Company was formed and commenced operations in late 2011. The Company is a Maryland corporation and completed its initial public offering (the “IPO”) in May 2012. The Company is externally managed by its Manager, pursuant to the terms of a management agreement (the “Management Agreement”).
 
The Company operates as one operating segment and is primarily focused on directly originating and managing a diversified portfolio of CRE debt-related investments for the Company’s own account. The Company’s target investments include senior mortgage loans, subordinated debt, preferred equity, mezzanine loans and other CRE investments, including commercial mortgage backed securities. These investments are generally held for investment and are secured, directly or indirectly, by office, multifamily, retail, industrial, lodging, self storage, student housing, residential and other commercial real estate properties, or by ownership interests therein.

    The Company has elected and qualified to be taxed as a real estate investment trust (“REIT”) for United States federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2012. The Company generally will not be subject to United States federal income taxes on its REIT taxable income as long as it annually distributes all of its REIT taxable income prior to the deduction for dividends paid to stockholders and complies with various other requirements as a REIT.
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SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES
    
Basis of Presentation

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with United States generally accepted accounting principles (“GAAP”) and include the accounts of the Company, the consolidated variable interest entities (“VIEs”) that the Company controls and of which the Company is the primary beneficiary, and the Company’s wholly-owned subsidiaries. The consolidated financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the Company’s results of operations and financial condition as of and for the periods presented. All intercompany balances and transactions have been eliminated.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. As of the date of this Annual Report, the novel coronavirus (“COVID-19”) pandemic and preventative measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns or the re-introduction of business shutdowns, cancellations of events and restrictions on travel, significant reductions in demand for certain goods and services, reductions in business activity and financial transactions and overall economic and financial market instability both globally and in the United States. The COVID-19 pandemic continues to disrupt global supply chains, has caused labor shortages and has added broad inflationary pressures, which has the potential to negatively impact the Company and its borrowers. While several countries, as well as certain states in the United States, have relaxed the public health restrictions through 2021 partly as a result of the introduction of vaccines, recurring COVID-19 outbreaks, including outbreaks caused by different virus variants, continue to lead to the re-introduction of certain restrictions in certain states in the United States and globally. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may experience a recession, and we anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States.
The Company believes the estimates and assumptions underlying its consolidated financial statements are reasonable and supportable based on the information available as of December 31, 2021, however, uncertainty over the ultimate impact the COVID-19 pandemic will have on the global economy and the Company’s business, makes any estimates and assumptions as of December 31, 2021 inherently less certain than they would be absent the current and potential impacts of the COVID-19 pandemic. Actual results could differ from those estimates.

Variable Interest Entities

The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary and it does not consolidate the VIE.
 
To assess whether the Company has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Company considers all facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE.

To assess whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers all of its economic interests, including debt and equity investments, servicing fees, and other arrangements deemed to be variable interests in the VIE. This assessment requires that the Company applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Company.

For VIEs of which the Company is determined to be the primary beneficiary, all of the underlying assets, liabilities, equity, revenue and expenses of the structures are consolidated into the Company’s consolidated financial statements.

The Company performs an ongoing reassessment of: (1) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore are subject to the VIE consolidation framework, and (2) whether changes in the facts and circumstances regarding its involvement with a VIE cause the Company’s consolidation conclusion regarding the VIE to change. See Note 16 included in these consolidated financial statements for further discussion of the Company’s VIEs.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions. Cash and short‑term investments with an original maturity of three months or less when acquired are considered cash and cash equivalents for the purpose of the consolidated balance sheets and statements of cash flows.

Restricted cash includes deposits required under certain Secured Funding Agreements (each individually defined in Note 6 included in these consolidated financial statements).

The following table provides a reconciliation of cash, cash equivalents and restricted cash in the consolidated balance sheets to the total amount shown in the consolidated statements of cash flows ($ in thousands):
As of December 31,
202120202019
Cash and cash equivalents$50,615 $74,776 $5,256 
Restricted cash— — 379 
Total cash, cash equivalents and restricted cash shown in the Company's consolidated statements of cash flows$50,615 $74,776 $5,635 

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and restricted cash, loans held for investment and interest receivable. The Company places its cash and cash equivalents with financial institutions and, at times, cash held may exceed the Federal Deposit Insurance Corporation insured limit. The Company has exposure to credit risk on its loans held for investment. The Company and the Company’s Manager seek to manage credit risk by performing due diligence prior to origination or acquisition and through the use of non‑recourse financing, when and where available and appropriate.

Loans Held for Investment

    The Company originates CRE debt and related instruments generally to be held for investment. Loans that are held for investment are carried at cost, net of unamortized loan fees and origination costs (the “carrying value”). Loans are generally collateralized by real estate. The extent of any credit deterioration associated with the performance and/or value of the underlying collateral property and the financial and operating capability of the borrower could impact the expected amounts received. The Company monitors performance of its loans held for investment portfolio under the following methodology: (1) borrower review, which analyzes the borrower’s ability to execute on its original business plan, reviews its financial condition, assesses pending litigation and considers its general level of responsiveness and cooperation; (2) economic review, which considers underlying collateral (i.e. leasing performance, unit sales and cash flow of the collateral and its ability to cover debt service, as well as the residual loan balance at maturity); (3) property review, which considers current environmental risks, changes in insurance costs or coverage, current site visibility, capital expenditures and market perception; and (4) market review, which analyzes the collateral from a supply and demand perspective of similar property types, as well as from a capital markets perspective. Such analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, and the borrower’s exit plan, among other factors.

    Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed against interest income in the period the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding the borrower’s ability to make pending principal and interest payments. Non-accrual loans are restored to accrual status when past due principal and interest are paid and, in management’s judgment, are likely to remain current. The Company may make exceptions to placing a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection.

    Loan balances that are deemed to be uncollectible are written off as a realized loss and are deducted from the current expected credit loss reserve. The write-offs are recorded in the period in which the loan balance is deemed uncollectible based on management’s judgment.
Current Expected Credit Losses

Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, requires the Company to reflect current expected credit losses (“CECL”) on both the outstanding balances and unfunded commitments on loans held for investment and requires consideration of a broad range of historical experience adjusted for current conditions and reasonable and supportable forecast information to inform credit loss estimates (the “CECL Reserve”). ASU No. 2016-13 was effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. ASU No. 2016-13 was adopted by the Company on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of January 1, 2020. Subsequent period increases and decreases to expected credit losses impact earnings and are recorded within provision for current expected credit losses in the Company’s consolidated statements of operations. The CECL Reserve related to outstanding balances on loans held for investment required under ASU No. 2016-13 is a valuation account that is deducted from the amortized cost basis of the Company’s loans held for investment in the Company’s consolidated balance sheets. The CECL Reserve related to unfunded commitments on loans held for investment is recorded within other liabilities in the Company's consolidated balance sheets. See Note 4 included in these consolidated financial statements for CECL related disclosures.

Loans Held for Sale

    Although the Company generally holds its target investments as long-term investments, the Company may occasionally classify some of its investments as held for sale. Investments held for sale are carried at fair value within loans held for sale, at fair value in the Company’s consolidated balance sheets, with changes in fair value recorded through earnings.
Real Estate Owned

    Real estate assets are carried at their estimated fair value at acquisition and are presented net of accumulated depreciation and impairment charges. The Company allocates the purchase price of acquired real estate assets based on the fair value of the acquired land, building, furniture, fixtures and equipment.

    Real estate assets are depreciated using the straight-line method over estimated useful lives of up to 40 years for buildings and improvements and up to 15 years for furniture, fixtures and equipment. Renovations and/or replacements that improve or extend the life of the real estate asset are capitalized and depreciated over their estimated useful lives. The cost of ordinary repairs and maintenance are expensed as incurred.

    Real estate assets are evaluated for indicators of impairment on a quarterly basis. Factors that the Company may consider in its impairment analysis include, among others: (1) significant underperformance relative to historical or anticipated operating results; (2) significant negative industry or economic trends; (3) costs necessary to extend the life or improve the real estate asset; (4) significant increase in competition; and (5) ability to hold and dispose of the real estate asset in the ordinary course of business. A real estate asset is considered impaired when the sum of estimated future undiscounted cash flows expected to be generated by the real estate asset over the estimated remaining holding period is less than the carrying amount of such real estate asset. Cash flows include operating cash flows and anticipated capital proceeds generated by the real estate asset. An impairment charge is recorded equal to the excess of the carrying value of the real estate asset over the fair value. When determining the fair value of a real estate asset, the Company makes certain assumptions including, but not limited to, consideration of projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the real estate asset based upon the Company’s estimate of a capitalization rate and discount rate.

    The Company reviews its real estate assets, from time to time, in order to determine whether to sell such assets. Real estate assets are classified as held for sale when the Company commits to a plan to sell the asset, when the asset is being actively marketed for sale at a reasonable price and the sale of the asset is probable and the transfer of the asset is expected to qualify for recognition as a completed sale within one year. Real estate assets that are held for sale are carried at the lower of the asset’s carrying amount or its fair value less costs to sell.

Debt Issuance Costs

Debt issuance costs under the Company’s indebtedness are capitalized and amortized over the term of the respective debt instrument. Unamortized debt issuance costs are expensed when the associated debt is repaid prior to maturity. Debt issuance costs related to debt securitizations are capitalized and amortized over the term of the underlying loans using the effective interest method. When an underlying loan is prepaid in a debt securitization and the outstanding principal balance of the securitization debt is reduced, the related unamortized debt issuance costs are charged to expense based on a pro‑rata share of the debt issuance costs being allocated to the specific loans that were prepaid. Amortization of debt issuance costs is included
within interest expense, except as noted below, in the Company’s consolidated statements of operations while the unamortized balance on (i) Secured Funding Agreements (each individually defined in Note 6 included in these consolidated financial statements) is included within other assets and (ii) Notes Payable, the Secured Term Loan (each defined in Note 6 included in these consolidated financial statements) and Secured Borrowings (defined in Note 7 included in these consolidated financial statements) and debt securitizations are each included as a reduction to the carrying amount of the liability, in the Company’s consolidated balance sheets. Amortization of debt issuance costs for the note payable on the hotel property that is recognized as real estate owned in the Company’s consolidated balance sheets (see Note 6 included in these consolidated financial statements for additional information on the note payable) is included within expenses from real estate owned in the Company’s consolidated statements of operations.

Derivative Financial Instruments

Derivative financial instruments are classified as either other assets (gain positions) or other liabilities (loss positions) in the Company’s consolidated balance sheets at fair value. These amounts may be offset to the extent that there is a legal right to offset and if elected by management.

On the date the Company enters into a derivative contract, the Company designates each contract as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, or as a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, the Company formally documents the hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and an evaluation of the effectiveness of its hedged transaction.

The Company performs a formal assessment on a quarterly basis on whether the derivative designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. Changes in the fair value of derivative contracts are recorded each period in either current earnings or other comprehensive income (“OCI”), depending on whether the derivative is designated as part of a hedge transaction and, if so, the type of hedge transaction. For derivatives that are designated as cash flow hedges, the effective portion of the unrealized gains or losses on these contracts is recorded in OCI. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in current earnings prospectively. The Company does not enter into derivatives for trading or speculative purposes.

Revenue Recognition

    Interest income is accrued based on the outstanding principal amount and the contractual terms of each loan. For loans held for investment, the origination fees, contractual exit fees and direct loan origination costs are also recognized in interest income over the initial loan term as a yield adjustment using the effective interest method.

    Revenue from real estate owned represents revenue associated with the operations of a hotel property classified as real estate owned. Revenue from the operation of the hotel property is recognized when guestrooms are occupied, services have been rendered or fees have been earned. Revenues are recorded net of any discounts and sales and other taxes collected from customers. Revenues consist of room sales, food and beverage sales and other hotel revenues.

Net Interest Margin and Interest Expense
    Net interest margin in the Company’s consolidated statements of operations serves to measure the performance of the Company’s loans as compared to its use of debt leverage. The Company includes interest income from its loans and interest expense related to its Secured Funding Agreements, Notes Payable, securitization debt, the Secured Term Loan (each individually defined in Note 6 included in these consolidated financial statements) and Secured Borrowings (defined in Note 7 included in these consolidated financial statements) in net interest margin. For the years ended December 31, 2021, 2020 and 2019, interest expense is comprised of the following ($ in thousands):
For the years ended December 31,
 202120202019
Secured funding agreements $16,403 $28,003 $32,859 
Notes payable (1)2,275 1,317 867 
Securitization debt20,104 12,384 19,950 
Secured term loan4,353 7,114 8,907 
Secured borrowings6,145 3,131 — 
Other (2)800 — — 
Interest expense$50,080 $51,949 $62,583 
____________________________
(1)    Excludes interest expense on the $28.3 million note payable, which is secured by a hotel property that is recognized as real estate owned in the Company’s consolidated balance sheets (see Note 6 included in these consolidated financial statements for additional information on the note payable). Interest expense on the $28.3 million note payable is included within expenses from real estate owned in the Company’s consolidated statements of operations.
(2)    Represents the net interest expense recognized from the Company’s derivative financial instruments upon periodic settlement.
Income Taxes

The Company has elected and qualified for taxation as a REIT commencing with its taxable year ended December 31, 2012. As a result of the Company’s REIT qualification and its distribution policy, the Company does not generally pay United States federal corporate level income taxes. Many of the REIT requirements, however, are highly technical and complex. To continue to qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that the Company distributes annually to its stockholders at least 90% of the Company’s REIT taxable income prior to the deduction for dividends paid. To the extent that the Company distributes less than 100% of its REIT taxable income in any tax year (taking into account any distributions made in a subsequent tax year under Sections 857(b)(9) or 858 of the Code), the Company will pay tax at regular corporate rates on that undistributed portion. Furthermore, if the Company distributes less than the sum of 1) 85% of its ordinary income for the calendar year, 2) 95% of its capital gain net income for the calendar year, and 3) any undistributed shortfall from its prior calendar year (the “Required Distribution”) to its stockholders during any calendar year (including any distributions declared by the last day of the calendar year but paid in the subsequent year), then it is required to pay a non-deductible excise tax equal to 4% of any shortfall between the Required Distribution and the amount that was actually distributed. The 90% distribution requirement does not require the distribution of net capital gains. However, if the Company elects to retain any of its net capital gain for any tax year, it must notify its stockholders and pay tax at regular corporate rates on the retained net capital gain. The stockholders must include their proportionate share of the retained net capital gain in their taxable income for the tax year, and they are deemed to have paid the REIT’s tax on their proportionate share of the retained capital gain. Furthermore, such retained capital gain may be subject to the nondeductible 4% excise tax. If it is determined that the Company’s estimated current year taxable income will be in excess of estimated dividend distributions (including capital gain dividend) for the current year from such income, the Company accrues excise tax on estimated excess taxable income as such taxable income is earned. The annual expense is calculated in accordance with applicable tax regulations. Excise tax expense is included in the line item income tax expense, including excise tax in the consolidated statements of operations included in this annual report on Form 10-K.

The Company formed a wholly-owned subsidiary, ACRC Lender W TRS LLC (“ACRC W TRS”), in December 2013 in order to issue and hold certain loans intended for sale. The Company also formed a wholly-owned subsidiary, ACRC 2017-FL3 TRS LLC (“FL3 TRS”), in March 2017 in order to hold a portion of the CLO Securitizations (as defined below), including the portion that generates excess inclusion income. Additionally, the Company also formed a wholly-owned subsidiary, ACRC WM Tenant LLC (“ACRC WM”), in March 2019 in order to lease the hotel property classified as real estate owned, which was acquired on March 8, 2019. Entity classification elections to be taxed as a corporation and taxable REIT subsidiary (“TRS”) elections were made with respect to ACRC W TRS, FL3 TRS and ACRC WM. A TRS is an entity taxed as a corporation that has not elected to be taxed as a REIT, in which a REIT directly or indirectly holds equity, and that has made a joint election with such REIT to be treated as a TRS. A TRS generally may engage in any business, including investing in assets and engaging in activities that could not be held or conducted directly by the Company without jeopardizing its qualification as a REIT. A TRS is subject to applicable United States federal, state and local income tax on its taxable income. In addition, as a REIT, the Company also may be subject to a 100% excise tax on certain transactions between it and its TRS that are not
conducted on an arm’s-length basis. For financial reporting purposes, a provision for current and deferred taxes has been established for the portion of the Company’s GAAP consolidated earnings recognized by ACRC W TRS, FL3 TRS and ACRC WM. The income tax provision is included in the line item income tax expense, including excise tax in the consolidated statements of operations included in this annual report on Form 10-K.

FASB ASC Topic 740, Income Taxes (“ASC 740”), prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. As of December 31, 2021 and 2020, based on the Company’s evaluation, there is no reserve for any uncertain income tax positions. ACRC W TRS, FL3 TRS and ACRC WM recognize interest and penalties, if any, related to unrecognized tax benefits within income tax expense in the consolidated statements of operations. Accrued interest and penalties, if any, are included within other liabilities in the consolidated balance sheets.

Comprehensive Income

Comprehensive income consists of net income and OCI that are excluded from net income.

Stock-Based Compensation

The Company recognizes the cost of stock‑based compensation, which is included within general and administrative expenses in the Company’s consolidated statements of operations. The fair value of the time vested restricted stock or restricted stock units (“RSUs”) granted is recorded to expense on a straight‑line basis over the vesting period for the award, with an offsetting increase in stockholders’ equity. For grants to directors and officers and employees of the Manager, the fair value is determined based upon the market price of the stock on the grant date.

Earnings per Share

The Company calculates basic earnings (loss) per share by dividing net income (loss) allocable to common stockholders for the period by the weighted average shares of common stock outstanding for that period after consideration of the earnings (loss) allocated to the Company’s restricted stock, which are participating securities as defined in GAAP. Diluted earnings (loss) per share takes into effect any dilutive instruments, such as restricted stock, RSUs and convertible debt, except when doing so would be anti‑dilutive. See Note 11 included in these consolidated financial statements for the earnings per share calculations.

Recent Accounting Pronouncements

    In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. ASU No. 2020-04 and ASU No. 2021-01 are effective for all entities and may be adopted retrospectively as of any date from the beginning of any interim period that includes or is subsequent to March 12, 2020 or prospectively to new modifications through December 31, 2022. The Company is currently evaluating the impact of adopting these ASUs on its consolidated financial statements.
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LOANS HELD FOR INVESTMENT
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
LOANS HELD FOR INVESTMENT LOANS HELD FOR INVESTMENT
As of December 31, 2021, the Company’s portfolio included 72 loans held for investment, excluding 116 loans that were repaid, sold or converted to real estate owned since inception. The aggregate originated commitment under these loans at closing was approximately $2.8 billion and outstanding principal was $2.4 billion as of December 31, 2021. During the year ended December 31, 2021, the Company funded approximately $1.3 billion of outstanding principal and received repayments of $657.2 million of outstanding principal as described in more detail in the tables below. As of December 31, 2021, 93.1% of the Company’s loans have LIBOR floors, with a weighted average floor of 1.10%, calculated based on loans with LIBOR floors. References to LIBOR or “L” are to 30-day LIBOR (unless otherwise specifically stated).
 
The Company’s investments in loans held for investment are accounted for at amortized cost. The following tables summarize the Company’s loans held for investment as of December 31, 2021 and 2020 ($ in thousands):

 As of December 31, 2021
Carrying Amount (1)Outstanding Principal (1)Weighted Average Unleveraged Effective YieldWeighted Average Remaining Life (Years)
Senior mortgage loans $2,397,655 $2,411,718 5.3 %(2)5.4 %(3)1.5
Subordinated debt and preferred equity investments16,728 17,394 13.7 %(2)13.7 %(3)4.0
Total loans held for investment portfolio $2,414,383 $2,429,112 5.4 %(2)5.5 %(3)1.6

 As of December 31, 2020
Carrying Amount (1)Outstanding Principal (1)Weighted Average Unleveraged Effective YieldWeighted Average Remaining Life (Years)
Senior mortgage loans $1,713,601 $1,723,638 5.9%(2)6.2 %(3)1.2
Subordinated debt and preferred equity investments101,618 102,603 13.4%(2)13.4 %(3)1.9
Total loans held for investment portfolio$1,815,219 $1,826,241 6.3%(2)6.6 %(3)1.2
______________________________

(1)The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs.
(2)Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2021 and 2020 as weighted by the outstanding principal balance of each loan.
(3)Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all interest accruing loans held by the Company as of December 31, 2021 and 2020 as weighted by the total outstanding principal balance of each interest accruing loan (excludes loans on non-accrual status as of December 31, 2021 and 2020).
A more detailed listing of the Company’s loans held for investment portfolio based on information available as of December 31, 2021 is as follows ($ in millions, except percentages):
Loan TypeLocationOutstanding Principal (1)Carrying Amount (1)Interest RateUnleveraged Effective Yield (2)Maturity Date (3)Payment Terms (4)
Senior Mortgage Loans:
OfficeIL$150.5$149.9L+3.61%5.5%Mar 2023I/O
OfficeDiversified113.6113.4L+3.65%5.7%Jan 2023I/O
Mixed-useFL84.084.0L+4.25%5.7%Feb 2023(5)I/O
IndustrialIL77.576.9L+4.55%5.1%May 2024I/O
OfficeAZ77.476.6L+3.50%4.0%Oct 2024I/O
IndustrialNY77.377.3L+5.00%7.1%Feb 2022(6)I/O
Mixed-useNY75.074.4L+3.65%4.1%Jul 2024I/O
HotelOR/WA68.167.6L+3.45%7.4%May 2022(7)I/O
Multifamily/OfficeSC67.066.7L+2.90%3.2%Nov 2024I/O
Residential CondominiumFL66.966.3L+5.25%6.0%Jul 2023I/O
OfficeNC64.764.0L+3.55%4.2%Aug 2024I/O
OfficeNC63.963.9L+4.25%6.7%Mar 2022(8)I/O
OfficeNY61.660.8L+3.85%4.3%Aug 2025I/O
OfficeIL61.060.9L+3.75%5.3%Dec 2022(9)I/O
HotelDiversified60.660.5L+3.60%6.0%Sep 2022(10)P/I(11)
OfficeIL57.257.2L+3.95%6.2%Jun 2022(12)P/I(11)
Mixed-useCA57.156.9(13)5.5%Jan 2024I/O
MultifamilyTX56.255.6L+2.85%3.4%Dec 2024I/O
Self StorageNJ55.555.6L+3.80%4.1%Feb 2024I/O
Residential CondominiumNY54.554.5(14)10.8%May 2021(14)I/O
OfficeGA46.646.5L+3.05%5.7%Dec 2022I/O
HotelCA40.039.8L+4.12%5.8%Jan 2023(15)I/O
MultifamilySC37.437.2L+2.75%3.4%Jun 2023I/O
Student HousingCA36.236.2L+3.95%4.3%Jul 2022I/O
Mixed-useTX35.835.6(16)4.7%Sep 2022I/O
Mixed-useCA35.435.2L+4.10%6.3%Mar 2023I/O
MultifamilySC34.033.8L+6.50%10.2%Sep 2022I/O
HotelMI33.233.2L+3.95%4.3%Jul 2022I/O
HotelIL32.930.7L+4.40%—%(17)May 2022(17)I/O
OfficeCA32.332.2L+3.35%6.0%Nov 2022I/O
MultifamilyCA31.731.4L+2.90%3.3%Dec 2025I/O
Student HousingNC30.030.0L+3.15%5.9%Feb 2022I/O
MultifamilyPA29.429.3L+3.00%4.5%Dec 2022(18)I/O
OfficeIL28.528.4L+3.80%6.2%Jan 2023I/O
OfficeNC28.528.2L+3.53%6.8%May 2023I/O
IndustrialFL25.525.3L+2.90%3.2%Dec 2025I/O
IndustrialTX25.325.1L+4.65%5.1%Dec 2024I/O
Student HousingTX24.624.4L+3.45%5.6%Feb 2023I/O
IndustrialNJ23.222.9L+3.75%4.7%May 2024I/O
MultifamilyWA23.123.0L+2.90%3.2%Nov 2025I/O
OfficeCA22.922.8L+3.40%6.0%Nov 2022(19)I/O
Student HousingFL22.022.0L+3.25%5.9%Aug 2022I/O
MultifamilyTX21.921.7L+2.50%3.0%Oct 2024I/O
IndustrialCO20.820.6L+6.75%7.7%Feb 2023I/O
Student HousingAL19.519.3L+3.85%4.3%May 2024I/O
MultifamilyWA18.718.6L+3.00%5.1%Mar 2023I/O
IndustrialCA16.716.6L+3.75%6.4%Mar 2023I/O
ResidentialCA14.314.313.00%—%(20)May 2021(20)I/O
Self StoragePA12.712.6L+3.05%4.3%Oct 2024I/O
Self StorageMD12.412.3L+3.05%4.3%Oct 2024I/O
Self StorageMD12.011.9L+3.05%4.3%Oct 2024I/O
Self StorageFL10.810.8L+2.90%4.4%Dec 2023I/O
IndustrialTX10.410.2L+5.25%5.9%Dec 2024I/O
Self StorageWA10.210.1L+3.05%4.3%Oct 2024I/O
OfficeNC9.49.4L+4.00%6.6%Nov 2022I/O
Self StorageMO8.88.7L+3.05%4.3%Oct 2024I/O
Self StorageAZ8.48.4L+2.90%4.0%May 2024I/O
IndustrialPA8.08.0L+5.50%6.1%Sep 2024I/O
IndustrialFL7.87.7L+5.90%6.6%Nov 2024I/O
Self StorageAZ7.47.3L+2.90%4.1%May 2024I/O
IndustrialPA7.06.9L+5.90%6.5%Nov 2024I/O
Self StorageFL7.06.9L+2.90%4.3%Dec 2023I/O
IndustrialTN6.76.6L+5.50%6.1%Nov 2024I/O
Self StorageFL6.46.4L+2.90%4.3%Dec 2023I/O
Self StorageMO6.26.2L+3.00%4.4%Dec 2023I/O
Self StorageIL5.65.6L+3.00%4.3%Dec 2023I/O
Self StorageFL4.44.4L+2.90%4.2%Dec 2023I/O
Self StorageCO3.23.2L+2.90%3.8%Apr 2024I/O
IndustrialCO2.92.9L+6.25%6.9%Sep 2024I/O
IndustrialAZ2.72.6L+5.90%6.5%Oct 2024I/O
IndustrialGA1.31.3L+5.25%5.9%Sep 2024I/O
Subordinated Debt and Preferred Equity Investments:
OfficeNJ17.416.712.00%13.7%Jan 2026I/O
Total/Weighted Average $2,429.1$2,414.45.4%

_________________________

(1)The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs. For the loans held for investment that represent co-investments with other investment vehicles managed by Ares Management (see Note 14 included in these consolidated financial statements for additional information on co-investments), only the portion of Carrying Amount and Outstanding Principal held by the Company is reflected.
(2)Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. Unleveraged Effective Yield for each loan is calculated based on LIBOR as of December 31, 2021 or the LIBOR floor, as applicable. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2021 as weighted by the outstanding principal balance of each loan.
(3)Certain loans are subject to contractual extension options that generally vary between one and two 12-month extensions and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications.
(4)I/O = interest only, P/I = principal and interest.
(5)In March 2021, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Florida loan to February 2023.
(6)In August 2021, the borrower exercised a six-month extension option in accordance with the loan agreement, which extended the maturity date on the senior New York loan to February 2022.
(7)In March 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the Oregon/Washington loan to May 2022. At origination, the Oregon/Washington loan was structured as both a senior and mezzanine loan with the Company holding both positions. The mezzanine position of this loan, which had an outstanding principal balance of $13.1 million as of December 31, 2021, was previously on non-accrual status. During the three months ended June 30, 2021, the mezzanine position was restored to accrual status as, based on management's judgment, there is no longer reasonable doubt that principal or interest will be collected in full.
(8)In February 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the senior North Carolina loan to March 2022.
(9)In December 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which
extended the maturity date on the senior Illinois loan to December 2022.
(10)In September 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the senior diversified loan to September 2022.
(11)Amortization began on the senior Illinois loan, which had an outstanding principal balance of $57.2 million as of December 31, 2021, and the senior diversified loan, which had an outstanding principal balance of $60.6 million as of December 31, 2021, in July 2021 and October 2021, respectively. The remainder of the loans in the Company’s portfolio are non-amortizing through their primary terms.
(12)In April 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the senior Illinois loan to June 2022.
(13)At origination, the California loan was structured as both a senior and mezzanine loan with the Company holding both positions. The senior loan, which had an outstanding principal balance of $45.0 million as of December 31, 2021, accrues interest at a per annum rate of L + 3.80% and the mezzanine loan, which had an outstanding principal balance of $12.1 million as of December 31, 2021, accrues interest at a per annum rate of 12.00%.
(14)At origination, the New York loan was structured as both a senior and mezzanine loan with the Company holding the mezzanine loan and a third party holding the senior loan. In April 2021, the Company purchased the senior loan from the third party at par. The senior loan, which had an outstanding principal balance of $35.9 million as of December 31, 2021, accrues interest at a per annum rate of L + 6.00% and the mezzanine loan, which had an outstanding principal balance of $15.9 million as of December 31, 2021, accrues interest at a per annum rate of L + 14.00%. The mezzanine loan includes a $2.6 million loan to the borrower, for which such amount accrues interest at a per annum rate of 20.00%. As of December 31, 2021, the New York loan, which is collateralized by a residential condominium property located in New York, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the May 2021 maturity date. The Company evaluated this loan for impairment and concluded that no impairment charge should be recognized as of December 31, 2021 and that this loan should not be placed on non-accrual status as of December 31, 2021. This conclusion was based in part on: (1) the current estimated fair market value of the underlying collateral property and applicable reserves and (2) the estimated cash flows from the sale of units of the underlying collateral property. The estimated fair market value of the underlying collateral property was determined using the comparable market sales approach.
(15)In November 2021, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior California loan to January 2023.
(16)In March 2021, the Company and the borrower entered into a modification agreement to, among other things, split the original senior Texas loan into two separate notes. Note A, which had an outstanding principal balance of $35.3 million as of December 31, 2021, accrues interest at a per annum rate of L + 3.75% and Note B, which had an outstanding principal balance of $0.4 million as of December 31, 2021, accrues interest at a per annum rate of L+10.00%.
(17)Loan was on non-accrual status as of December 31, 2021 and therefore, there is no Unleveraged Effective Yield as the loan is non-interest accruing. In May 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the senior Illinois loan to May 2022.
(18)In October 2021, the Company and the borrower entered into a modification and extension agreement to, among other
things, extend the maturity date on the senior Pennsylvania loan to December 2022.
(19)In September 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which
extended the maturity date on the senior California loan to November 2022.
(20)Loan was on non-accrual status as of December 31, 2021 and therefore, there is no Unleveraged Effective Yield as the loan is non-interest accruing. As of December 31, 2021, the senior California loan, which is collateralized by a residential property, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the May 2021 maturity date. The Company evaluated this loan for impairment and concluded that no impairment charge should be recognized as of December 31, 2021. This conclusion was based in part on: (1) the current estimated fair market value of the underlying collateral property, (2) the estimated value of the contractual right to residual proceeds from the sale of a second residential property and (3) the recourse payment guarantee from two individuals that are the owners of the underlying collateral. The estimated fair market value of the underlying collateral property was determined using the comparable market sales approach.


The Company has made, and may continue to make, modifications to loans, including loans that are in default. Loan terms that may be modified include interest rates, required prepayments, asset release prices, maturity dates, covenants, principal amounts and other loan terms. The terms and conditions of each modification vary based on individual circumstances and will be determined on a case by case basis. The Company’s Manager monitors and evaluates each of the Company’s loans held for investment and has maintained regular communications with borrowers and sponsors regarding the potential impacts of the COVID-19 pandemic on the Company’s loans. Some of the Company’s borrowers, in particular, borrowers with properties exposed to the hospitality, student housing and retail industries, indicated that due to the impact of the COVID-19 pandemic, they could be unable to timely execute their business plans, experienced cash flow pressure, and had to temporarily close their businesses or have experienced other negative business consequences. Certain borrowers have requested temporary interest deferral or forbearance or other modifications of their loans. These modifications included deferrals or capitalization of interest, amendments in extension, future funding or performance tests, extension of the maturity date, repurposing of reserves or covenant waivers on loans secured by properties directly or indirectly impacted by the COVID-19 pandemic. Loan modifications during the period were conducted pursuant to the relief granted via the Coronavirus Aid, Relief, and Economic Security Act and therefore are not evaluated for or accounted for as troubled debt restructurings.
For the years ended December 31, 2021 and 2020, the activity in the Company’s loan portfolio was as follows ($ in thousands):
Balance at December 31, 2019$1,682,498 
Initial funding430,562 
Origination fees and discounts, net of costs(5,778)
Additional funding107,767 
Amortizing payments(2,728)
Loan payoffs(304,028)
Loans sold to third parties (1)(100,504)
Origination fee accretion7,430 
Balance at December 31, 2020$1,815,219 
Initial funding1,166,100 
Origination fees and discounts, net of costs(12,192)
Additional funding 93,973 
Amortizing payments(2,586)
Loan payoffs(654,564)
Origination fee accretion 8,433 
Balance at December 31, 2021$2,414,383 

(1) In July 2020, the Company closed the sale of a senior mortgage loan with outstanding principal of $31.5 million, which was collateralized by a hotel property located in Minnesota, to a third party. In addition, in August 2020, the Company closed the sale of two senior mortgage loans to a third party with outstanding principal of $39.9 million and $29.6 million, respectively, which were collateralized by multifamily properties located in Illinois and Texas, respectively. For the year ended December 31, 2020, the Company recognized an aggregate net realized loss of $4.0 million in the Company's consolidated statements of operations upon the sale of the three senior mortgage loans as the carrying value exceeded the sale prices of the loans. The three senior mortgage loans discussed above were previously classified as held for investment and were sold in order to rebalance and optimize the Company’s loan portfolio.

Except as described above, as of December 31, 2021, all loans held for investment were paying in accordance with their contractual terms. As of December 31, 2021, the Company had two loans held for investment on non-accrual status with a carrying value of $45.0 million. As of December 31, 2020, the Company had three loans held for investment on non-accrual status with a carrying value of $67.1 million.
v3.22.0.1
CURRENT EXPECTED CREDIT LOSSES
 12 Months Ended
Dec. 31, 2021
Credit Loss [Abstract]  
CURRENT EXPECTED CREDIT LOSSES CURRENT EXPECTED CREDIT LOSSES     The Company estimates its CECL Reserve primarily using a probability-weighted model that considers the likelihood of default and expected loss given default for each individual loan. Calculation of the CECL Reserve requires loan specific data, which includes capital senior to the Company when the Company is the subordinate lender, changes in net operating income, debt service coverage ratio, loan-to-value, occupancy, property type and geographic location. Estimating the CECL Reserve also requires significant judgment with respect to various factors, including (i) the appropriate historical loan loss reference data, (ii) the expected timing of loan repayments, (iii) calibration of the likelihood of default to reflect the risk characteristics of the Company’s floating-rate loan portfolio and (iv) the Company’s current and future view of the macroeconomic environment. The Company may consider loan-specific qualitative factors on certain loans to estimate its CECL Reserve. In order to estimate the future expected loan losses relevant to the Company’s portfolio, the Company utilizes historical market loan loss data licensed from a third party data service. The third party’s loan database includes historical loss data for commercial mortgage-backed securities, or CMBS, issued dating back to 1998, which the Company believes is a reasonably comparable and available data set to its type of loans. The Company utilized macroeconomic data that reflects a current recession; however, the short and long-term economic implications of the COVID-19 pandemic and its financial impact on the Company continue to be highly uncertain. For periods beyond the reasonable and supportable forecast period, the Company reverts back to historical loss data. Management's current estimate of expected credit losses as of December 31, 2021 was consistent with the current estimate of expected credit losses as of December 31, 2020 primarily due to growth in the loan portfolio and other changes to the loan portfolio being offset by forecasted improvement in macroeconomic factors, shorter average remaining loan term and loan payoffs during the year ended December 31, 2021. The CECL Reserve takes into consideration the assumed macroeconomic
impact of the COVID-19 pandemic on CRE properties and is not specific to any loan losses or impairments on the Company’s loans held for investment.
    
As of December 31, 2021, the Company’s CECL Reserve for its loans held for investment portfolio is $25.2 million or 95 basis points of the Company’s total loans held for investment commitment balance of $2.7 billion and is bifurcated between the CECL reserve (contra-asset) related to outstanding balances on loans held for investment of $23.9 million and a liability for unfunded commitments of $1.3 million. The liability was based on the unfunded portion of the loan commitment over the full contractual period over which the Company is exposed to credit risk through a current obligation to extend credit. Management considered the likelihood that funding will occur, and if funded, the expected credit loss on the funded portion.    

Current Expected Credit Loss Reserve for Funded Loan Commitments    

    Activity related to the CECL Reserve for outstanding balances on the Company’s loans held for investment as of and for the years ended December 31, 2021 and 2020 was as follows ($ in thousands):
Balance at December 31, 2019$— 
Impact of adoption of CECL4,440 
Provision for current expected credit losses19,164 
Write-offs— 
Recoveries— 
Balance at December 31, 2020 (1)
$23,604 
Provision for current expected credit losses335 
Write-offs— 
Recoveries— 
Balance at December 31, 2021 (1)
$23,939 
__________________________

(1)     The CECL Reserve related to outstanding balances on loans held for investment is recorded within current expected credit loss reserve in the Company's consolidated balance sheets.

Current Expected Credit Loss Reserve for Unfunded Loan Commitments    

    Activity related to the CECL Reserve for unfunded commitments on the Company’s loans held for investment as of and for the years ended December 31, 2021 and 2020 was as follows ($ in thousands):

Balance at December 31, 2019$— 
Impact of adoption of CECL611 
Provision for current expected credit losses1,021 
Write-offs— 
Recoveries— 
Balance at December 31, 2020 (1)
$1,632 
Provision for current expected credit losses(325)
Write-offs— 
Recoveries — 
Balance at December 31, 2021 (1)
$1,307 
__________________________

(1)     The CECL Reserve related to unfunded commitments on loans held for investment is recorded within other liabilities in the Company's consolidated balance sheets.

The Company continuously evaluates the credit quality of each loan by assessing the risk factors of each loan and assigning a risk rating based on a variety of factors. Risk factors include property type, geographic and local market dynamics, physical condition, leasing and tenant profile, projected cash flow, loan structure and exit plan, loan-to-value ratio, debt service
coverage ratio, project sponsorship, and other factors deemed necessary. Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows:
Ratings    Definition
1Very Low Risk
2Low Risk
3Medium Risk
4High Risk/Potential for Loss: Asset performance is trailing underwritten expectations. Loan at risk of impairment without material improvement to performance
5Impaired/Loss Likely: A loan that has a significantly increased probability of default and principal loss

    The risk ratings are primarily based on historical data as well as taking into account future economic conditions.

    As of December 31, 2021, the carrying value, excluding the CECL Reserve, of the Company’s loans held for investment within each risk rating by year of origination is as follows ($ in thousands):
20212020201920182017PriorTotal
Risk rating:
1$28,462$—$—$9,383$—$—$37,845
2403,052—147,815———550,867
3609,751394,389273,391180,213161,32849,9041,668,976
435,922—2,649118,124——156,695
5———————
Total$1,077,187$394,389$423,855$307,720$161,328$49,904$2,414,383

Accrued Interest Receivable

    The Company elected not to measure a CECL Reserve on accrued interest receivable due to the Company’s policy of writing off uncollectible accrued interest receivable balances in a timely manner. As of December 31, 2021 and 2020, interest receivable of $17.1 million and $11.2 million, respectively, is included within other assets in the Company's consolidated balance sheets and is excluded from the carrying value of loans held for investment. If the Company were to have uncollectible accrued interest receivable, it generally would reverse accrued and unpaid interest against interest income and no longer accrue for these amounts.
v3.22.0.1
REAL ESTATE OWNED
 12 Months Ended
Dec. 31, 2021
Real Estate Owned [Abstract]  
REAL ESTATE OWNED REAL ESTATE OWNED
On March 8, 2019, the Company acquired legal title to a hotel property located in New York through a deed in lieu of foreclosure. Prior to March 8, 2019, the hotel property collateralized a $38.6 million senior mortgage loan held by the Company that was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the December 2018 maturity date. In conjunction with the deed in lieu of foreclosure, the Company derecognized the $38.6 million senior mortgage loan and recognized the hotel property as real estate owned. As of the date of the deed in lieu of foreclosure, the Company did not expect to complete a sale of the hotel property within the next twelve months and thus, the hotel property was considered held for use, and was carried at its estimated fair value at acquisition and was presented net of accumulated depreciation and impairment charges. The Company did not recognize any gain or loss on the derecognition of the senior mortgage loan as the fair value of the hotel property of $36.9 million and the net assets held at the hotel property of $1.7 million at acquisition approximated the $38.6 million carrying value of the senior mortgage loan. 

On November 8, 2021, the Company entered into a Purchase and Sale Agreement to sell the hotel property to a third party for $40.0 million and the sale is expected to close in the first quarter of 2022. As such, as of December 31, 2021, the hotel property is classified as real estate owned held for sale in the Company’s consolidated balance sheets and the Company has ceased depreciating the carrying value of the hotel property. Further, as the net carrying value of the hotel property as of December 31, 2021 is lower than the estimated fair value of the hotel property less costs to sell, the Company has continued to recognize the hotel property at its net carrying value in the Company’s consolidated balance sheets and no gain or loss related to the planned sale of the hotel property has been recognized in the Company’s consolidated statements of operations for the year ended December 31, 2021. The assets and liabilities of the hotel property are included within other assets and other liabilities, respectively, in the Company’s consolidated balance sheets and include items such as cash, restricted cash, trade receivables and payables and advance deposits.
The following table summarizes the Company’s real estate owned as of December 31, 2021 and 2020 ($ in thousands):
As of December 31,
20212020
Land$10,200 $10,200 
Buildings and improvements24,281 24,281 
Furniture, fixtures and equipment4,506 4,362 
38,987 38,843 
Less: Accumulated depreciation (2,385)(1,560)
Real estate owned, net$36,602 $37,283 

As of December 31, 2021, no impairment charges have been recognized for real estate owned.

For the years ended December 31, 2021 and 2020, the Company incurred depreciation expense of $825 thousand and $892 thousand, respectively. Depreciation expense is included within expenses from real estate owned in the Company’s consolidated statements of operations.
v3.22.0.1
DEBT
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
DEBT DEBT
Financing Agreements

The Company borrows funds, as applicable in a given period, under the Wells Fargo Facility, the Citibank Facility, the CNB Facility, the MetLife Facility and the Morgan Stanley Facility (individually defined below and collectively, the “Secured Funding Agreements”), Notes Payable (as defined below) and the Secured Term Loan (as defined below). The Company refers to the Secured Funding Agreements, Notes Payable and the Secured Term Loan as the “Financing Agreements.” The outstanding balance of the Financing Agreements in the table below are presented gross of debt issuance costs. As of December 31, 2021 and 2020, the outstanding balances and total commitments under the Financing Agreements consisted of the following ($ in thousands):

As of December 31,
20212020
Outstanding BalanceTotal
Commitment		Outstanding BalanceTotal
Commitment
Secured Funding Agreements:
Wells Fargo Facility$399,528 $450,000 (1)$336,001 $350,000 (1)
Citibank Facility192,970 325,000 117,506 325,000 
CNB Facility— 75,000 (2)50,000 50,000 (2)
MetLife Facility20,648 180,000 104,124 180,000 
Morgan Stanley Facility226,901 250,000 147,921 150,000 
Subtotal$840,047 $1,280,000 $755,552 $1,055,000 
Notes Payable $51,110 $51,755 $63,122 $84,155 
Secured Term Loan$150,000 $150,000 (3)$110,000 $110,000 
   Total$1,041,157 $1,481,755 $928,674 $1,249,155 

______________________________

(1)The maximum commitment for the Wells Fargo Facility (as defined below) may be increased to up to $500.0 million at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsize fee. In December 2021, the Company elected to increase the maximum commitment for the Wells Fargo Facility from $350.0 million to $450.0 million.
(2)In November 2021, the Company amended the CNB Facility (as defined below) to, among other things, increase the commitment amount from $50.0 million to $75.0 million.
(3)In November 2021, the Company amended the Secured Term Loan (as defined below) to, among other things, increase the commitment amount to $150.0 million.


Some of the Company’s Financing Agreements are collateralized by (i) assignments of specific loans, preferred equity or a pool of loans held for investment or loans held for sale owned by the Company, (ii) interests in the subordinated portion of the Company’s securitization debt, or (iii) interests in wholly-owned entity subsidiaries that hold the Company’s loans held for investment. The Company is the borrower or guarantor under each of the Financing Agreements. Generally, the Company partially offsets interest rate risk by matching the interest index of loans held for investment with the Secured Funding Agreements used to fund them. The Company’s Financing Agreements contain various affirmative and negative covenants, including negative pledges, and provisions regarding events of default that are normal and customary for similar financing arrangements.

Wells Fargo Facility
 
The Company is party to a master repurchase funding facility with Wells Fargo Bank, National Association (“Wells Fargo”) (the “Wells Fargo Facility”), which allows the Company to borrow up to $450.0 million. The maximum commitment may be increased to up to $500.0 million at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsize fee. In December 2021, the Company elected to increase the maximum commitment for the Wells Fargo Facility from $350.0 million to $450.0 million. Under the Wells Fargo Facility, the Company is permitted to sell, and later repurchase, certain qualifying senior commercial mortgage loans, A-Notes, pari-passu participations in commercial mortgage loans and mezzanine loans under certain circumstances, subject to available collateral approved by Wells Fargo in its sole discretion. The funding period of the Wells Fargo Facility expires on December 14, 2022, subject to one 12-month extension at the Company’s option, which, if exercised, would extend the funding period to December 14, 2023. The initial maturity date of the Wells Fargo Facility is December 14, 2022, subject to three 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if all three were exercised, would extend the maturity date of the Wells Fargo Facility to December 14, 2025. Advances under the Wells Fargo Facility accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a pricing margin range of 1.50% to 2.75%, subject to certain exceptions. In December 2020, the Company amended the Wells Fargo Facility to, among other things, eliminate the non-utilization fee on the Wells Fargo Facility. Prior to the amendment, the Company incurred a non-utilization fee of 25 basis points per annum on the average daily available balance of the Wells Fargo Facility to the extent less than 75% of the Wells Fargo Facility was utilized. For the year ended December 31, 2021, the Company did not incur a non-utilization fee. For the years ended December 31, 2020 and 2019, the Company incurred a non-utilization fee of $19 thousand and $618 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations.

The Wells Fargo Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar repurchase facilities, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments in excess of the minimum amount necessary to continue to qualify as a REIT and avoid the payment of income and excise taxes, (d) maintenance of adequate capital, (e) limitations on change of control, (f) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (g) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00, (h) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period to be at least 1.25 to 1.00, (i) maintaining a tangible net worth of at least the sum of (1) approximately $135.5 million, plus (2) 80% of the net proceeds raised in all future equity issuances by the Company and (j) if certain specific debt yield, loan to value or other credit based tests are not met with respect to assets on the Wells Fargo Facility, the Company may be required to repay certain amounts under the Wells Fargo Facility. As of December 31, 2021, the Company was in compliance with all financial covenants of the Wells Fargo Facility.

Citibank Facility

The Company is party to a $325.0 million master repurchase facility with Citibank, N.A. (“Citibank”) (the “Citibank Facility”). Under the Citibank Facility, the Company is permitted to sell and later repurchase certain qualifying senior commercial mortgage loans and A-Notes approved by Citibank in its sole discretion. In November 2021, the Company amended the Citibank Facility to extend the initial maturity date to January 13, 2022, subject to two 12-month extensions, each
of which may be exercised at the Company’s option assuming no existing defaults under the Citibank Facility and applicable extension fees being paid, which, if both were exercised, would extend the maturity date of the Citibank Facility to December 13, 2023. Advances under the Citibank Facility accrue interest at a per annum rate equal to the sum of one-month LIBOR plus an indicative pricing margin range of 1.50% to 2.25%, subject to certain exceptions. The Company incurs a non-utilization fee of 25 basis points per annum on the average daily available balance of the Citibank Facility to the extent less than 75% of the Citibank Facility is utilized. For the years ended December 31, 2021, 2020 and 2019, the Company incurred a non-utilization fee of $598 thousand, $516 thousand and $388 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations.

The Citibank Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar repurchase facilities, including the following: (a) maintaining tangible net worth of at least the sum of (1) 80% of the Company’s tangible net worth as of September 30, 2013, plus (2) 80% of the total net capital raised in all future equity issuances by the Company, (b) maintaining liquidity in an amount not less than the greater of (1) $5.0 million or (2) 5% of the Company’s recourse indebtedness, not to exceed $10.0 million (provided that in the event the Company’s total liquidity equals or exceeds $5.0 million, the Company may satisfy the difference between the minimum total liquidity requirement and the Company’s total liquidity with available borrowing capacity), (c) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period to be at least 1.25 to 1.00, (d) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (e) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00 and (f) if certain specific debt yield and loan to value tests are not met with respect to assets on the Citibank Facility, the Company may be required to repay certain amounts under the Citibank Facility. The Citibank Facility also prohibits the Company from amending the management agreement with its Manager in a material respect without the prior consent of the lender. As of December 31, 2021, the Company was in compliance with all financial covenants of the Citibank Facility. See Note 17 included in these consolidated financial statements for a subsequent event related to the Citibank Facility.

CNB Facility
    The Company is party to a $75.0 million secured revolving funding facility with City National Bank (the “CNB Facility”). The Company is permitted to borrow funds under the CNB Facility to finance investments and for other working capital and general corporate needs. In March 2021, the Company exercised a 12-month extension option on the CNB Facility to extend the maturity date to March 10, 2022. In November 2021, the Company amended the CNB Facility to, among other things, (1) increase the commitment amount from $50.0 million to $75.0 million and (2) update the interest rate on advances under the CNB Facility to a per annum rate equal to the sum of, at the Company’s option, either (a) Daily Simple SOFR (“Secured Overnight Financing Rate,” or “SOFR”) (with a 0.35% floor) plus 2.65% or (b) a base rate (which is the highest of a prime rate, the federal funds rate plus 0.50%, or Daily Simple SOFR plus 1.00%) plus 1.00%; provided that in no event shall the interest rate be less than 2.65%. Previously the interest rate on advances was a per annum rate equal to the sum of, at the Company’s option, either (a) LIBOR for a one, two, three, six or, if available to all lenders, 12-month interest period plus 2.65% or (b) a base rate (which is the highest of a prime rate, the federal funds rate plus 0.50%, or one-month LIBOR plus 1.00%) plus 1.00%. Unless at least 75% of the CNB Facility is used on average, unused commitments under the CNB Facility accrue non-utilization fees at the rate of 0.375% per annum. For the years ended December 31, 2021, 2020 and 2019, the Company incurred a non-utilization fee of $146 thousand, $38 thousand and $136 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations.

The CNB Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar financing facilities, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments following a default or event of default, (d) limitations on dispositions of assets, (e) maintenance of minimum total asset value by the borrower under the CNB Facility and its subsidiaries and (f) prohibitions of certain change of control events.  The agreements governing the CNB Facility also impose certain covenants on the Company, including the following: (i) maintaining a ratio of total debt to tangible net worth of not more than 4.50 to 1.00, (ii) maintaining a tangible net worth of at least 80% of the Company’s net worth as of September 30, 2013, plus 80% of the net cash proceeds raised in equity issuances by the Company after March 12, 2014, (iii) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period of at least 1.25 to 1.00, (iv) limitations on mergers, consolidations, transfers of assets and similar transactions and (v) maintaining its status as a REIT. As of December 31, 2021, the Company was in compliance with all financial covenants of the CNB Facility.
MetLife Facility    

The Company is party to a $180.0 million revolving master repurchase facility with Metropolitan Life Insurance Company (“MetLife”) (the “MetLife Facility”), pursuant to which the Company may sell, and later repurchase, commercial mortgage loans meeting defined eligibility criteria which are approved by MetLife in its sole discretion. The initial maturity date of the MetLife Facility is August 13, 2022, subject to two 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if both were exercised, would extend the maturity date of the MetLife Facility to August 13, 2024. Advances under the MetLife Facility accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 2.50%, subject to certain exceptions. For a period of nine months subsequent to August 2020, the non-utilization fee of 25 basis points per annum on the average daily available balance of the MetLife Facility, which is owed if less than 65% of the MetLife Facility is utilized, was waived. For the years ended December 31, 2021, 2020 and 2019, the Company incurred a non-utilization fee of $162 thousand, $7 thousand and $5 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations.
The MetLife Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar repurchase facilities, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments following a default or event of default and (d) limitations on dispositions of assets.  The agreements governing the MetLife Facility also impose certain covenants on the Company, including the following: (i) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (ii) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00, (iii) maintaining a tangible net worth of at least 80% of the Company’s net worth as of September 30, 2013, plus 80% of the net cash proceeds raised in equity issuances by the Company after August 13, 2014, (iv) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period of at least 1.25 to 1.00, and (v) if certain specific debt yield, loan to value or other credit based tests are not met with respect to assets on the MetLife Facility, the Company may be required to repay certain amounts under the MetLife Facility. As of December 31, 2021, the Company was in compliance with all financial covenants of the MetLife Facility.
Morgan Stanley Facility
    The Company is party to a $250.0 million master repurchase and securities contract with Morgan Stanley Bank, N.A. (“Morgan Stanley”) (the “Morgan Stanley Facility”). Under the Morgan Stanley Facility, the Company is permitted to sell, and later repurchase, certain qualifying commercial mortgage loans collateralized by retail, office, mixed-use, multifamily, industrial, hospitality, student housing or self-storage properties. Morgan Stanley may approve the mortgage loans that are subject to the Morgan Stanley Facility in its sole discretion. The Morgan Stanley Facility has an accordion feature that provides for a $100.0 million permanent increase in the commitment amount from $150.0 million to $250.0 million, which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsized commitment fee. In June 2021, the Company exercised the option to increase the commitment amount from $150.0 million to $250.0 million. The initial maturity date of the Morgan Stanley Facility is January 16, 2023, subject to two 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if both were exercised, would extend the maturity date of the Morgan Stanley Facility to January 16, 2025. Advances under the Morgan Stanley Facility generally accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a spread ranging from 1.75% to 2.25%, determined by Morgan Stanley, depending upon the mortgage loan sold to Morgan Stanley in the applicable transaction.
The Morgan Stanley Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar repurchase facilities, including the following: (a) maintaining tangible net worth of at least the sum of (1) 80% of the Company’s tangible net worth as of September 30, 2013, plus (2) 80% of the total net capital raised in all future equity issuances by the Company, (b) maintaining liquidity in an amount not less than the greater of (1) $5.0 million or (2) 5% of the Company’s recourse indebtedness, not to exceed $10.0 million (provided that in the event the Company’s total liquidity equals or exceeds $5.0 million, the Company may satisfy the difference between the minimum total liquidity requirement and the Company’s total liquidity with available borrowing capacity), (c) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period to be at least 1.25 to 1.00, (d) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (e) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00 and (f) if certain specific debt yield and loan to value tests are not met with respect to assets on the Morgan Stanley Facility, the Company may be required to repay certain amounts under
the Morgan Stanley Facility. The Morgan Stanley Facility also prohibits the Company from amending the management agreement with its Manager in a material respect without the prior consent of the lender. As of December 31, 2021, the Company was in compliance with all financial covenants of the Morgan Stanley Facility.
Notes Payable

Certain of the Company’s subsidiaries are party to two separate non-recourse note agreements (the “Notes Payable”) with the lenders referred to therein, consisting of (1) a $28.3 million note that was closed in June 2019, which is secured by a hotel property located in New York that is recognized as real estate owned in the Company’s consolidated balance sheets and (2) a $23.5 million note that was closed in November 2019, which is secured by a $34.6 million senior mortgage loan held by the Company on a multifamily property located in South Carolina.

The maturity date of the $28.3 million note is June 10, 2024, subject to one 6-month extension, which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, which, if exercised, would extend the maturity date to December 10, 2024. The loan may be prepaid at any time subject to the payment of a prepayment fee, if applicable. Initial advances under the $28.3 million note accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 3.00%. If the hotel property that collateralizes the $28.3 million note achieves certain financial performance hurdles, the interest rate on advances will decrease to a per annum rate equal to the sum of one-month LIBOR plus a spread of 2.50%. The $28.3 million loan amount may be increased to up to $30.0 million to fund certain construction costs of improvements at the hotel, subject to the satisfaction of certain conditions and the payment of a commitment fee. As of December 31, 2021, the total outstanding principal balance of the note was $28.3 million.

The initial maturity date of the $23.5 million note is September 5, 2022, subject to two 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if both were exercised, would extend the maturity date to September 5, 2024. Advances under the $23.5 million note accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 3.75%. As of December 31, 2021, the total outstanding principal balance of the note was $22.8 million.

Secured Term Loan

The Company and certain of its subsidiaries are party to a $150.0 million Credit and Guaranty Agreement with the lenders referred to therein and Cortland Capital Market Services LLC, as administrative agent and collateral agent for the lenders (the “Secured Term Loan”). In December 2020, the Company exercised a 12-month extension option on the Secured Term Loan to extend the maturity date to December 22, 2021. In March 2021, the Company voluntarily elected to repay $50.0 million of outstanding principal on the Secured Term Loan at par prior to the scheduled maturity as permitted by the contractual terms of the Secured Term Loan. In November 2021, the Company amended the Secured Term Loan to, among other things, (1) increase the commitment amount to $150.0 million, which was fully drawn on the closing date of the amendment, net of an original issue discount equal to 0.50% of the commitment amount, (2) extend the maturity date of the Secured Term Loan to November 12, 2026 and (3) update the interest rate on advances under the Secured Term Loan to the following fixed rates: (i) 4.50% per annum until May 12, 2025, (ii) after May 12, 2025 through November 12, 2025, the interest rate increases 0.125% every three months and (iii) after November 12, 2025 through November 12, 2026, the interest rate increases 0.250% every three months. Prior to the November 2021 amendment, advances under the Secured Term Loan accrued interest at a per annum rate equal to the sum of, at the Company’s option, one, two, three or six-month LIBOR plus a spread of 5.00%. During the 12-month extension period beginning December 22, 2020, the spread on advances under the Secured Term Loan increased every three months by 0.125%, 0.375% and 0.750% per annum, respectively, beginning after the third-month of the extension period. As of December 31, 2021, the total outstanding principal balance of the Secured Term Loan was $150.0 million.

The total original issue discount on the Secured Term Loan represents a discount to the debt cost to be amortized into interest expense using the effective interest method over the term of the Secured Term Loan. For the years ended December 31, 2021, 2020 and 2019, the estimated per annum effective interest rate of the Secured Term Loan, which is equal to LIBOR plus the spread plus the accretion of the original issue discount and associated costs, was 5.2%, 6.4% and 8.0%, respectively.

The Company's obligations under the Secured Term Loan are guaranteed by certain subsidiaries of the Company. Certain subsidiaries of the Company entered into a Pledge and Security Agreement with the collateral agent under the Secured Term Loan, pursuant to which the obligations of the Company and the subsidiary guarantors under the Secured Term Loan are each secured by equity interests in certain of the Company's indirect subsidiaries and other assets. In addition, the Company and certain of its subsidiaries entered into a Negative Pledge Agreement with the collateral agent under the Secured Term Loan,
which prohibits pledging or otherwise encumbering, subject to permitted encumbrances, certain of the assets which were not subject to the Pledge and Security Agreement.

The Secured Term Loan contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar financing agreements, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments following a default or event of default, (d) limitations on dispositions of assets and (e) prohibitions of certain change of control events. The agreements governing the Secured Term Loan also impose certain covenants on the Company, including the following: (i) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period to be at least 1.10 to 1.00, (ii) maintaining a ratio of total debt to tangible net worth of not more than 4.50 to 1.00, (iii) maintaining a tangible net worth of at least 80% of the Company’s net worth as of September 30, 2021, plus 80% of the net cash proceeds raised in subsequent equity issuances by the Company, (iv) maintaining an asset coverage ratio greater than 115%, (v) maintaining an unencumbered asset ratio greater than 125%, (vi) limitations on mergers, consolidations, transfers of assets and similar transactions, (vii) maintaining its status as a REIT and (viii) maintaining at least 65% of loans held for investment as senior commercial real estate loans, as measured by the average daily outstanding principal balance of all loans held for investment during a fiscal quarter and as adjusted for non-controlling interests. As of December 31, 2021, the Company was in compliance with all financial covenants of the Secured Term Loan.

Financing Agreements Maturities

At December 31, 2021, approximate principal maturities of the Company’s Financing Agreements are as follows ($ in thousands):
Wells Fargo
Facility		Citibank
Facility		CNB FacilityMetLife FacilityMorgan Stanley FacilityNotes PayableSecured Term LoanTotal
2022$399,528 $192,970 $— $20,648 $— $22,835 $— $635,981 
2023— — — — 226,901 — — 226,901 
2024— — — — — 28,275 — 28,275 
2025— — — — — — — — 
2026— — — — — — 150,000 150,000 
Thereafter— — — — — — — — 
$399,528 $192,970 $— $20,648 $226,901 $51,110 $150,000 $1,041,157 
SECURED BORROWINGS
    A subsidiary of the Company is party to a secured borrowing arrangement related to a transferred loan that was closed in February 2020. In April 2019, the Company originated a $30.5 million loan on an office property located in North Carolina, which was bifurcated between a $24.4 million senior mortgage loan and a $6.1 million mezzanine loan. In February 2020, the Company transferred its interest in the $24.4 million senior mortgage loan to a third party and retained the $6.1 million mezzanine loan. The Company evaluated whether the transfer of the $24.4 million senior mortgage loan met the criteria in FASB ASC Topic 860, Transfers and Servicing, for treatment as a sale – legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transfer of effective control – and determined that the transfer did not qualify as a sale and thus, is treated as a financing transaction. As such, the Company did not derecognize the $24.4 million senior mortgage loan asset and recorded a secured borrowing liability in the consolidated balance sheets. The initial maturity date of the $24.4 million secured borrowing is May 5, 2023, subject to one 12-month extension, which may be exercised at the transferee’s option, which, if exercised, would extend the maturity date to May 5, 2024. Advances under the $24.4 million secured borrowing accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 2.50%. As of December 31, 2021, the total outstanding principal balance of the secured borrowing was $22.7 million.
    In June 2020, the Company originated a $91.8 million senior mortgage loan on a multifamily property located in Florida, which the Company subsequently bifurcated between a $66.9 million senior participation, which accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 2.94% and a $24.9 million subordinated participation, which accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 10.50%. In June 2020, the Company transferred its interest in the $24.9 million subordinated participation to a third party and retained the $66.9 million
senior participation. The Company evaluated whether the transfer of the $24.9 million subordinated participation met the criteria in FASB ASC Topic 860, Transfers and Servicing, for treatment as a sale. As the $66.9 million senior participation and the $24.9 million subordinated participation failed to meet the participating interest requirements in FASB ASC Topic 860, Transfers and Servicing, since the cash flows from the original $91.8 million senior mortgage loan were not allocated pro rata to the participation holders and there was a subordination of interest amongst the holders, it was determined that the transfer did not qualify as a sale and thus, was treated as a financing transaction. As such, the Company did not derecognize the $24.9 million subordinated participation and recorded a secured borrowing liability in the consolidated balance sheets. In December 2021, the $91.8 million senior mortgage loan was fully repaid and thus, the $24.9 million secured borrowing liability was derecognized.
    In June 2020, the Company closed the purchase of a $46.7 million senior mortgage loan on a multifamily property located in Florida, which the Company subsequently bifurcated between a $34.1 million senior participation, which accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 2.94% and a $12.6 million subordinated participation, which accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 10.50%. In June 2020, the Company transferred its interest in the $12.6 million subordinated participation to a third party and retained the $34.1 million senior participation. The Company evaluated whether the transfer of the $12.6 million subordinated participation met the criteria in FASB ASC Topic 860, Transfers and Servicing, for treatment as a sale. As the $34.1 million senior participation and the $12.6 million subordinated participation failed to meet the participating interest requirements in FASB ASC Topic 860, Transfers and Servicing, since the cash flows from the original $46.7 million senior mortgage loan were not allocated pro rata to the participation holders and there was a subordination of interest amongst the holders, it was determined that the transfer did not qualify as a sale and thus, was treated as a financing transaction. As such, the Company did not derecognize the $12.6 million subordinated participation and recorded a secured borrowing liability in the consolidated balance sheets. In December 2021, the $46.7 million senior mortgage loan was fully repaid and thus, the $12.6 million secured borrowing liability was derecognized.
v3.22.0.1
SECURED BORROWINGS
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
SECURED BORROWINGS DEBT
Financing Agreements

The Company borrows funds, as applicable in a given period, under the Wells Fargo Facility, the Citibank Facility, the CNB Facility, the MetLife Facility and the Morgan Stanley Facility (individually defined below and collectively, the “Secured Funding Agreements”), Notes Payable (as defined below) and the Secured Term Loan (as defined below). The Company refers to the Secured Funding Agreements, Notes Payable and the Secured Term Loan as the “Financing Agreements.” The outstanding balance of the Financing Agreements in the table below are presented gross of debt issuance costs. As of December 31, 2021 and 2020, the outstanding balances and total commitments under the Financing Agreements consisted of the following ($ in thousands):

As of December 31,
20212020
Outstanding BalanceTotal
Commitment		Outstanding BalanceTotal
Commitment
Secured Funding Agreements:
Wells Fargo Facility$399,528 $450,000 (1)$336,001 $350,000 (1)
Citibank Facility192,970 325,000 117,506 325,000 
CNB Facility— 75,000 (2)50,000 50,000 (2)
MetLife Facility20,648 180,000 104,124 180,000 
Morgan Stanley Facility226,901 250,000 147,921 150,000 
Subtotal$840,047 $1,280,000 $755,552 $1,055,000 
Notes Payable $51,110 $51,755 $63,122 $84,155 
Secured Term Loan$150,000 $150,000 (3)$110,000 $110,000 
   Total$1,041,157 $1,481,755 $928,674 $1,249,155 

______________________________

(1)The maximum commitment for the Wells Fargo Facility (as defined below) may be increased to up to $500.0 million at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsize fee. In December 2021, the Company elected to increase the maximum commitment for the Wells Fargo Facility from $350.0 million to $450.0 million.
(2)In November 2021, the Company amended the CNB Facility (as defined below) to, among other things, increase the commitment amount from $50.0 million to $75.0 million.
(3)In November 2021, the Company amended the Secured Term Loan (as defined below) to, among other things, increase the commitment amount to $150.0 million.


Some of the Company’s Financing Agreements are collateralized by (i) assignments of specific loans, preferred equity or a pool of loans held for investment or loans held for sale owned by the Company, (ii) interests in the subordinated portion of the Company’s securitization debt, or (iii) interests in wholly-owned entity subsidiaries that hold the Company’s loans held for investment. The Company is the borrower or guarantor under each of the Financing Agreements. Generally, the Company partially offsets interest rate risk by matching the interest index of loans held for investment with the Secured Funding Agreements used to fund them. The Company’s Financing Agreements contain various affirmative and negative covenants, including negative pledges, and provisions regarding events of default that are normal and customary for similar financing arrangements.

Wells Fargo Facility
 
The Company is party to a master repurchase funding facility with Wells Fargo Bank, National Association (“Wells Fargo”) (the “Wells Fargo Facility”), which allows the Company to borrow up to $450.0 million. The maximum commitment may be increased to up to $500.0 million at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsize fee. In December 2021, the Company elected to increase the maximum commitment for the Wells Fargo Facility from $350.0 million to $450.0 million. Under the Wells Fargo Facility, the Company is permitted to sell, and later repurchase, certain qualifying senior commercial mortgage loans, A-Notes, pari-passu participations in commercial mortgage loans and mezzanine loans under certain circumstances, subject to available collateral approved by Wells Fargo in its sole discretion. The funding period of the Wells Fargo Facility expires on December 14, 2022, subject to one 12-month extension at the Company’s option, which, if exercised, would extend the funding period to December 14, 2023. The initial maturity date of the Wells Fargo Facility is December 14, 2022, subject to three 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if all three were exercised, would extend the maturity date of the Wells Fargo Facility to December 14, 2025. Advances under the Wells Fargo Facility accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a pricing margin range of 1.50% to 2.75%, subject to certain exceptions. In December 2020, the Company amended the Wells Fargo Facility to, among other things, eliminate the non-utilization fee on the Wells Fargo Facility. Prior to the amendment, the Company incurred a non-utilization fee of 25 basis points per annum on the average daily available balance of the Wells Fargo Facility to the extent less than 75% of the Wells Fargo Facility was utilized. For the year ended December 31, 2021, the Company did not incur a non-utilization fee. For the years ended December 31, 2020 and 2019, the Company incurred a non-utilization fee of $19 thousand and $618 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations.

The Wells Fargo Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar repurchase facilities, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments in excess of the minimum amount necessary to continue to qualify as a REIT and avoid the payment of income and excise taxes, (d) maintenance of adequate capital, (e) limitations on change of control, (f) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (g) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00, (h) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period to be at least 1.25 to 1.00, (i) maintaining a tangible net worth of at least the sum of (1) approximately $135.5 million, plus (2) 80% of the net proceeds raised in all future equity issuances by the Company and (j) if certain specific debt yield, loan to value or other credit based tests are not met with respect to assets on the Wells Fargo Facility, the Company may be required to repay certain amounts under the Wells Fargo Facility. As of December 31, 2021, the Company was in compliance with all financial covenants of the Wells Fargo Facility.

Citibank Facility

The Company is party to a $325.0 million master repurchase facility with Citibank, N.A. (“Citibank”) (the “Citibank Facility”). Under the Citibank Facility, the Company is permitted to sell and later repurchase certain qualifying senior commercial mortgage loans and A-Notes approved by Citibank in its sole discretion. In November 2021, the Company amended the Citibank Facility to extend the initial maturity date to January 13, 2022, subject to two 12-month extensions, each
of which may be exercised at the Company’s option assuming no existing defaults under the Citibank Facility and applicable extension fees being paid, which, if both were exercised, would extend the maturity date of the Citibank Facility to December 13, 2023. Advances under the Citibank Facility accrue interest at a per annum rate equal to the sum of one-month LIBOR plus an indicative pricing margin range of 1.50% to 2.25%, subject to certain exceptions. The Company incurs a non-utilization fee of 25 basis points per annum on the average daily available balance of the Citibank Facility to the extent less than 75% of the Citibank Facility is utilized. For the years ended December 31, 2021, 2020 and 2019, the Company incurred a non-utilization fee of $598 thousand, $516 thousand and $388 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations.

The Citibank Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar repurchase facilities, including the following: (a) maintaining tangible net worth of at least the sum of (1) 80% of the Company’s tangible net worth as of September 30, 2013, plus (2) 80% of the total net capital raised in all future equity issuances by the Company, (b) maintaining liquidity in an amount not less than the greater of (1) $5.0 million or (2) 5% of the Company’s recourse indebtedness, not to exceed $10.0 million (provided that in the event the Company’s total liquidity equals or exceeds $5.0 million, the Company may satisfy the difference between the minimum total liquidity requirement and the Company’s total liquidity with available borrowing capacity), (c) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period to be at least 1.25 to 1.00, (d) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (e) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00 and (f) if certain specific debt yield and loan to value tests are not met with respect to assets on the Citibank Facility, the Company may be required to repay certain amounts under the Citibank Facility. The Citibank Facility also prohibits the Company from amending the management agreement with its Manager in a material respect without the prior consent of the lender. As of December 31, 2021, the Company was in compliance with all financial covenants of the Citibank Facility. See Note 17 included in these consolidated financial statements for a subsequent event related to the Citibank Facility.

CNB Facility
    The Company is party to a $75.0 million secured revolving funding facility with City National Bank (the “CNB Facility”). The Company is permitted to borrow funds under the CNB Facility to finance investments and for other working capital and general corporate needs. In March 2021, the Company exercised a 12-month extension option on the CNB Facility to extend the maturity date to March 10, 2022. In November 2021, the Company amended the CNB Facility to, among other things, (1) increase the commitment amount from $50.0 million to $75.0 million and (2) update the interest rate on advances under the CNB Facility to a per annum rate equal to the sum of, at the Company’s option, either (a) Daily Simple SOFR (“Secured Overnight Financing Rate,” or “SOFR”) (with a 0.35% floor) plus 2.65% or (b) a base rate (which is the highest of a prime rate, the federal funds rate plus 0.50%, or Daily Simple SOFR plus 1.00%) plus 1.00%; provided that in no event shall the interest rate be less than 2.65%. Previously the interest rate on advances was a per annum rate equal to the sum of, at the Company’s option, either (a) LIBOR for a one, two, three, six or, if available to all lenders, 12-month interest period plus 2.65% or (b) a base rate (which is the highest of a prime rate, the federal funds rate plus 0.50%, or one-month LIBOR plus 1.00%) plus 1.00%. Unless at least 75% of the CNB Facility is used on average, unused commitments under the CNB Facility accrue non-utilization fees at the rate of 0.375% per annum. For the years ended December 31, 2021, 2020 and 2019, the Company incurred a non-utilization fee of $146 thousand, $38 thousand and $136 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations.

The CNB Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar financing facilities, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments following a default or event of default, (d) limitations on dispositions of assets, (e) maintenance of minimum total asset value by the borrower under the CNB Facility and its subsidiaries and (f) prohibitions of certain change of control events.  The agreements governing the CNB Facility also impose certain covenants on the Company, including the following: (i) maintaining a ratio of total debt to tangible net worth of not more than 4.50 to 1.00, (ii) maintaining a tangible net worth of at least 80% of the Company’s net worth as of September 30, 2013, plus 80% of the net cash proceeds raised in equity issuances by the Company after March 12, 2014, (iii) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period of at least 1.25 to 1.00, (iv) limitations on mergers, consolidations, transfers of assets and similar transactions and (v) maintaining its status as a REIT. As of December 31, 2021, the Company was in compliance with all financial covenants of the CNB Facility.
MetLife Facility    

The Company is party to a $180.0 million revolving master repurchase facility with Metropolitan Life Insurance Company (“MetLife”) (the “MetLife Facility”), pursuant to which the Company may sell, and later repurchase, commercial mortgage loans meeting defined eligibility criteria which are approved by MetLife in its sole discretion. The initial maturity date of the MetLife Facility is August 13, 2022, subject to two 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if both were exercised, would extend the maturity date of the MetLife Facility to August 13, 2024. Advances under the MetLife Facility accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 2.50%, subject to certain exceptions. For a period of nine months subsequent to August 2020, the non-utilization fee of 25 basis points per annum on the average daily available balance of the MetLife Facility, which is owed if less than 65% of the MetLife Facility is utilized, was waived. For the years ended December 31, 2021, 2020 and 2019, the Company incurred a non-utilization fee of $162 thousand, $7 thousand and $5 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations.
The MetLife Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar repurchase facilities, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments following a default or event of default and (d) limitations on dispositions of assets.  The agreements governing the MetLife Facility also impose certain covenants on the Company, including the following: (i) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (ii) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00, (iii) maintaining a tangible net worth of at least 80% of the Company’s net worth as of September 30, 2013, plus 80% of the net cash proceeds raised in equity issuances by the Company after August 13, 2014, (iv) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period of at least 1.25 to 1.00, and (v) if certain specific debt yield, loan to value or other credit based tests are not met with respect to assets on the MetLife Facility, the Company may be required to repay certain amounts under the MetLife Facility. As of December 31, 2021, the Company was in compliance with all financial covenants of the MetLife Facility.
Morgan Stanley Facility
    The Company is party to a $250.0 million master repurchase and securities contract with Morgan Stanley Bank, N.A. (“Morgan Stanley”) (the “Morgan Stanley Facility”). Under the Morgan Stanley Facility, the Company is permitted to sell, and later repurchase, certain qualifying commercial mortgage loans collateralized by retail, office, mixed-use, multifamily, industrial, hospitality, student housing or self-storage properties. Morgan Stanley may approve the mortgage loans that are subject to the Morgan Stanley Facility in its sole discretion. The Morgan Stanley Facility has an accordion feature that provides for a $100.0 million permanent increase in the commitment amount from $150.0 million to $250.0 million, which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsized commitment fee. In June 2021, the Company exercised the option to increase the commitment amount from $150.0 million to $250.0 million. The initial maturity date of the Morgan Stanley Facility is January 16, 2023, subject to two 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if both were exercised, would extend the maturity date of the Morgan Stanley Facility to January 16, 2025. Advances under the Morgan Stanley Facility generally accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a spread ranging from 1.75% to 2.25%, determined by Morgan Stanley, depending upon the mortgage loan sold to Morgan Stanley in the applicable transaction.
The Morgan Stanley Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar repurchase facilities, including the following: (a) maintaining tangible net worth of at least the sum of (1) 80% of the Company’s tangible net worth as of September 30, 2013, plus (2) 80% of the total net capital raised in all future equity issuances by the Company, (b) maintaining liquidity in an amount not less than the greater of (1) $5.0 million or (2) 5% of the Company’s recourse indebtedness, not to exceed $10.0 million (provided that in the event the Company’s total liquidity equals or exceeds $5.0 million, the Company may satisfy the difference between the minimum total liquidity requirement and the Company’s total liquidity with available borrowing capacity), (c) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period to be at least 1.25 to 1.00, (d) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (e) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00 and (f) if certain specific debt yield and loan to value tests are not met with respect to assets on the Morgan Stanley Facility, the Company may be required to repay certain amounts under
the Morgan Stanley Facility. The Morgan Stanley Facility also prohibits the Company from amending the management agreement with its Manager in a material respect without the prior consent of the lender. As of December 31, 2021, the Company was in compliance with all financial covenants of the Morgan Stanley Facility.
Notes Payable

Certain of the Company’s subsidiaries are party to two separate non-recourse note agreements (the “Notes Payable”) with the lenders referred to therein, consisting of (1) a $28.3 million note that was closed in June 2019, which is secured by a hotel property located in New York that is recognized as real estate owned in the Company’s consolidated balance sheets and (2) a $23.5 million note that was closed in November 2019, which is secured by a $34.6 million senior mortgage loan held by the Company on a multifamily property located in South Carolina.

The maturity date of the $28.3 million note is June 10, 2024, subject to one 6-month extension, which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, which, if exercised, would extend the maturity date to December 10, 2024. The loan may be prepaid at any time subject to the payment of a prepayment fee, if applicable. Initial advances under the $28.3 million note accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 3.00%. If the hotel property that collateralizes the $28.3 million note achieves certain financial performance hurdles, the interest rate on advances will decrease to a per annum rate equal to the sum of one-month LIBOR plus a spread of 2.50%. The $28.3 million loan amount may be increased to up to $30.0 million to fund certain construction costs of improvements at the hotel, subject to the satisfaction of certain conditions and the payment of a commitment fee. As of December 31, 2021, the total outstanding principal balance of the note was $28.3 million.

The initial maturity date of the $23.5 million note is September 5, 2022, subject to two 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if both were exercised, would extend the maturity date to September 5, 2024. Advances under the $23.5 million note accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 3.75%. As of December 31, 2021, the total outstanding principal balance of the note was $22.8 million.

Secured Term Loan

The Company and certain of its subsidiaries are party to a $150.0 million Credit and Guaranty Agreement with the lenders referred to therein and Cortland Capital Market Services LLC, as administrative agent and collateral agent for the lenders (the “Secured Term Loan”). In December 2020, the Company exercised a 12-month extension option on the Secured Term Loan to extend the maturity date to December 22, 2021. In March 2021, the Company voluntarily elected to repay $50.0 million of outstanding principal on the Secured Term Loan at par prior to the scheduled maturity as permitted by the contractual terms of the Secured Term Loan. In November 2021, the Company amended the Secured Term Loan to, among other things, (1) increase the commitment amount to $150.0 million, which was fully drawn on the closing date of the amendment, net of an original issue discount equal to 0.50% of the commitment amount, (2) extend the maturity date of the Secured Term Loan to November 12, 2026 and (3) update the interest rate on advances under the Secured Term Loan to the following fixed rates: (i) 4.50% per annum until May 12, 2025, (ii) after May 12, 2025 through November 12, 2025, the interest rate increases 0.125% every three months and (iii) after November 12, 2025 through November 12, 2026, the interest rate increases 0.250% every three months. Prior to the November 2021 amendment, advances under the Secured Term Loan accrued interest at a per annum rate equal to the sum of, at the Company’s option, one, two, three or six-month LIBOR plus a spread of 5.00%. During the 12-month extension period beginning December 22, 2020, the spread on advances under the Secured Term Loan increased every three months by 0.125%, 0.375% and 0.750% per annum, respectively, beginning after the third-month of the extension period. As of December 31, 2021, the total outstanding principal balance of the Secured Term Loan was $150.0 million.

The total original issue discount on the Secured Term Loan represents a discount to the debt cost to be amortized into interest expense using the effective interest method over the term of the Secured Term Loan. For the years ended December 31, 2021, 2020 and 2019, the estimated per annum effective interest rate of the Secured Term Loan, which is equal to LIBOR plus the spread plus the accretion of the original issue discount and associated costs, was 5.2%, 6.4% and 8.0%, respectively.

The Company's obligations under the Secured Term Loan are guaranteed by certain subsidiaries of the Company. Certain subsidiaries of the Company entered into a Pledge and Security Agreement with the collateral agent under the Secured Term Loan, pursuant to which the obligations of the Company and the subsidiary guarantors under the Secured Term Loan are each secured by equity interests in certain of the Company's indirect subsidiaries and other assets. In addition, the Company and certain of its subsidiaries entered into a Negative Pledge Agreement with the collateral agent under the Secured Term Loan,
which prohibits pledging or otherwise encumbering, subject to permitted encumbrances, certain of the assets which were not subject to the Pledge and Security Agreement.

The Secured Term Loan contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company’s subsidiaries, which are normal and customary for similar financing agreements, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments following a default or event of default, (d) limitations on dispositions of assets and (e) prohibitions of certain change of control events. The agreements governing the Secured Term Loan also impose certain covenants on the Company, including the following: (i) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period to be at least 1.10 to 1.00, (ii) maintaining a ratio of total debt to tangible net worth of not more than 4.50 to 1.00, (iii) maintaining a tangible net worth of at least 80% of the Company’s net worth as of September 30, 2021, plus 80% of the net cash proceeds raised in subsequent equity issuances by the Company, (iv) maintaining an asset coverage ratio greater than 115%, (v) maintaining an unencumbered asset ratio greater than 125%, (vi) limitations on mergers, consolidations, transfers of assets and similar transactions, (vii) maintaining its status as a REIT and (viii) maintaining at least 65% of loans held for investment as senior commercial real estate loans, as measured by the average daily outstanding principal balance of all loans held for investment during a fiscal quarter and as adjusted for non-controlling interests. As of December 31, 2021, the Company was in compliance with all financial covenants of the Secured Term Loan.

Financing Agreements Maturities

At December 31, 2021, approximate principal maturities of the Company’s Financing Agreements are as follows ($ in thousands):
Wells Fargo
Facility		Citibank
Facility		CNB FacilityMetLife FacilityMorgan Stanley FacilityNotes PayableSecured Term LoanTotal
2022$399,528 $192,970 $— $20,648 $— $22,835 $— $635,981 
2023— — — — 226,901 — — 226,901 
2024— — — — — 28,275 — 28,275 
2025— — — — — — — — 
2026— — — — — — 150,000 150,000 
Thereafter— — — — — — — — 
$399,528 $192,970 $— $20,648 $226,901 $51,110 $150,000 $1,041,157 
SECURED BORROWINGS
    A subsidiary of the Company is party to a secured borrowing arrangement related to a transferred loan that was closed in February 2020. In April 2019, the Company originated a $30.5 million loan on an office property located in North Carolina, which was bifurcated between a $24.4 million senior mortgage loan and a $6.1 million mezzanine loan. In February 2020, the Company transferred its interest in the $24.4 million senior mortgage loan to a third party and retained the $6.1 million mezzanine loan. The Company evaluated whether the transfer of the $24.4 million senior mortgage loan met the criteria in FASB ASC Topic 860, Transfers and Servicing, for treatment as a sale – legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transfer of effective control – and determined that the transfer did not qualify as a sale and thus, is treated as a financing transaction. As such, the Company did not derecognize the $24.4 million senior mortgage loan asset and recorded a secured borrowing liability in the consolidated balance sheets. The initial maturity date of the $24.4 million secured borrowing is May 5, 2023, subject to one 12-month extension, which may be exercised at the transferee’s option, which, if exercised, would extend the maturity date to May 5, 2024. Advances under the $24.4 million secured borrowing accrue interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 2.50%. As of December 31, 2021, the total outstanding principal balance of the secured borrowing was $22.7 million.
    In June 2020, the Company originated a $91.8 million senior mortgage loan on a multifamily property located in Florida, which the Company subsequently bifurcated between a $66.9 million senior participation, which accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 2.94% and a $24.9 million subordinated participation, which accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 10.50%. In June 2020, the Company transferred its interest in the $24.9 million subordinated participation to a third party and retained the $66.9 million
senior participation. The Company evaluated whether the transfer of the $24.9 million subordinated participation met the criteria in FASB ASC Topic 860, Transfers and Servicing, for treatment as a sale. As the $66.9 million senior participation and the $24.9 million subordinated participation failed to meet the participating interest requirements in FASB ASC Topic 860, Transfers and Servicing, since the cash flows from the original $91.8 million senior mortgage loan were not allocated pro rata to the participation holders and there was a subordination of interest amongst the holders, it was determined that the transfer did not qualify as a sale and thus, was treated as a financing transaction. As such, the Company did not derecognize the $24.9 million subordinated participation and recorded a secured borrowing liability in the consolidated balance sheets. In December 2021, the $91.8 million senior mortgage loan was fully repaid and thus, the $24.9 million secured borrowing liability was derecognized.
    In June 2020, the Company closed the purchase of a $46.7 million senior mortgage loan on a multifamily property located in Florida, which the Company subsequently bifurcated between a $34.1 million senior participation, which accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 2.94% and a $12.6 million subordinated participation, which accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 10.50%. In June 2020, the Company transferred its interest in the $12.6 million subordinated participation to a third party and retained the $34.1 million senior participation. The Company evaluated whether the transfer of the $12.6 million subordinated participation met the criteria in FASB ASC Topic 860, Transfers and Servicing, for treatment as a sale. As the $34.1 million senior participation and the $12.6 million subordinated participation failed to meet the participating interest requirements in FASB ASC Topic 860, Transfers and Servicing, since the cash flows from the original $46.7 million senior mortgage loan were not allocated pro rata to the participation holders and there was a subordination of interest amongst the holders, it was determined that the transfer did not qualify as a sale and thus, was treated as a financing transaction. As such, the Company did not derecognize the $12.6 million subordinated participation and recorded a secured borrowing liability in the consolidated balance sheets. In December 2021, the $46.7 million senior mortgage loan was fully repaid and thus, the $12.6 million secured borrowing liability was derecognized.
v3.22.0.1
DERIVATIVE FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS
The Company uses derivative financial instruments, which includes interest rate swaps and interest rate caps, on certain borrowing transactions to manage its net exposure to interest rate changes and to reduce its overall cost of borrowing. These derivatives may or may not qualify as cash flow hedges under the hedge accounting requirements of FASB ASC Topic 815, Derivatives and Hedging. Derivatives not designated as cash flow hedges are not speculative and are used to manage our exposure to interest rate movements. See Note 2 included in these consolidated financial statements for additional discussion of the accounting for designated and non-designated hedges.

The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these contractual arrangements do not perform as agreed. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties that have appropriate credit ratings and are major financial institutions with which the Company and its affiliates may also have other financial relationships.

The following tables detail our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of December 31, 2021 (notional amount in thousands):

Interest Rate DerivativesNumber of InstrumentsNotional Amount
Rate(1)
IndexWeighted Average Maturity (Years)
Interest rate swaps1$700,000 0.2075 %LIBOR(2)1.0
Interest rate caps1$220,000 0.5000 %LIBOR1.0
_______________________________

(1)    Represents fixed rate for interest rate swaps and strike rate for interest rate caps.
(2)    Subject to a 0.00% floor.

The following table summarizes the fair value of our derivative financial instruments ($ in thousands):
 
Fair Value of Derivatives in an Asset Position(1) as of
Fair Value of Derivatives in a Liability Position(2) as of
December 31, 2021December 31, 2020December 31, 2021December 31, 2020
Derivatives designated as hedging instruments:
Interest rate derivatives$2,979 — — — 
____________________________

(1)    Included in other assets in the Company’s consolidated balance sheets.
(2)    Included in other liabilities in the Company’s consolidated balance sheets.
v3.22.0.1
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
    As further discussed in Note 2, the full extent of the impact of the COVID-19 pandemic on the global economy and the Company’s business continues to be uncertain. As of December 31, 2021, there were no contingencies recorded on the Company’s consolidated balance sheets as a result of the COVID-19 pandemic, however, if the global pandemic continues and market conditions worsen, it could adversely affect the Company’s business, financial condition and results of operations.
    
    As of December 31, 2021 and 2020, the Company had the following commitments to fund various senior mortgage loans, subordinated debt investments, as well as preferred equity investments accounted for as loans held for investment ($ in thousands):
 As of December 31,
20212020
Total commitments $2,662,853 $2,013,993 
Less: funded commitments (2,429,112)(1,826,241)
Total unfunded commitments $233,741 $187,752 
The Company from time to time may be a party to litigation relating to claims arising in the normal course of business. As of December 31, 2021, the Company is not aware of any legal claims that could materially impact its business, financial condition or results of operations.
v3.22.0.1
STOCKHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITY
At the Market Stock Offering Program

    On November 22, 2019, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”), pursuant to which the Company may offer and sell, from time to time, shares of the Company’s common stock, par value $0.01 per share, having an aggregate offering price of up to $100.0 million. Subject to the terms and conditions of the Equity Distribution Agreement, sales of common stock, if any, may be made in transactions that are deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended. During the year ended December 31, 2021, the Company sold an aggregate of 137,237 shares of the Company’s common stock under the Equity Distribution Agreement at an average price of $15.68 per share. The sales generated net proceeds of approximately $2.1 million. During the year ended December 31, 2020, the Company did not issue or sell any shares of common stock under the Equity Distribution Agreement.

Equity Offerings

On March 15, 2021, the Company entered into an underwriting agreement (the “March 2021 Underwriting Agreement”), by and among the Company, ACREM, and Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, and BofA Securities, Inc., as representatives of the several underwriters listed therein (collectively, the “March 2021 Underwriters”). Pursuant to the terms of the March 2021 Underwriting Agreement, the Company agreed to sell, and the March 2021 Underwriters agreed to purchase, subject to the terms and conditions set forth in the March 2021 Underwriting Agreement, an aggregate of 7,000,000 shares of the Company’s common stock, par value $0.01 per share. The public offering closed on March 18, 2021 and generated net proceeds of approximately $100.7 million, after deducting transaction expenses.
On June 17, 2021, the Company entered into an underwriting agreement (the “June 2021 Underwriting Agreement”), by and among the Company, ACREM, and Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, and BofA Securities, Inc., as representatives of the several underwriters listed therein (collectively, the “June 2021 Underwriters”). Pursuant to the terms of the June 2021 Underwriting Agreement, the Company agreed to sell, and the June 2021 Underwriters agreed to purchase, subject to the terms and conditions set forth in the June 2021 Underwriting Agreement, an aggregate of 6,500,000 shares of the Company’s common stock, par value $0.01 per share. The public offering closed on June 22, 2021 and generated net proceeds of approximately $101.6 million, after deducting transaction expenses.

Equity Incentive Plan
 
On April 23, 2012, the Company adopted an equity incentive plan. In April 2018, the Company’s board of directors authorized, and in June 2018, the Company’s stockholders approved, an amended and restated equity incentive plan that increased the total amount of shares of common stock the Company may grant thereunder to 1,390,000 shares (the “Amended and Restated 2012 Equity Incentive Plan”). Pursuant to the Amended and Restated 2012 Equity Incentive Plan, the Company may grant awards consisting of restricted shares of the Company’s common stock, restricted stock units (“RSUs”) and/or other equity-based awards to the Company’s outside directors, employees of the Manager, officers, ACREM and other eligible awardees under the plan. Any restricted shares of the Company’s common stock and RSUs will be accounted for under FASB ASC Topic 718, Compensation—Stock Compensation, resulting in stock-based compensation expense equal to the grant date fair value of the underlying restricted shares of common stock or RSUs.
 
Restricted stock and RSU grants generally vest ratably over a one to four year period from the vesting start date. The grantee receives additional compensation for each outstanding restricted stock or RSU grant, classified as dividends paid, equal to the per-share dividends received by common stockholders.

The following tables summarize the (i) non-vested shares of restricted stock and RSUs and (ii) vesting schedule of shares of restricted stock and RSUs for the Company’s directors and officers and employees of the Manager as of December 31, 2021:

Schedule of Non-Vested Share and Share Equivalents
 Restricted Stock Grants—DirectorsRestricted Stock Grants—Officers and Employees of the ManagerRSUs—Officers and Employees of the ManagerTotal
Balance at December 31, 202022,324 68,851 267,507 358,682 
Granted 28,280 — 292,495 320,775 
Vested (33,964)(41,511)(38,176)(113,651)
Forfeited — (1,967)(24,665)(26,632)
Balance at December 31, 202116,640 25,373 497,161 539,174 

Future Anticipated Vesting Schedule
Restricted Stock Grants—DirectorsRestricted Stock Grants—Officers and Employees of the ManagerRSUs—Officers and Employees of the ManagerTotal
202212,887 25,373 83,442 121,702 
20231,668 — 175,508 177,176 
20241,668 — 146,159 147,827 
2025417 — 92,052 92,469 
2026— — — — 
Total 16,640 25,373 497,161 539,174 
The following table summarizes the restricted stock and RSU compensation expense included within general and administrative expenses in the Company’s consolidated statements of operations, the total fair value of shares vested and the weighted average grant date fair value of the restricted stock and RSUs granted to the Company’s directors and officers and employees of the Manager for the years ended December 31, 2021, 2020 and 2019 ($ in thousands):
 For the years ended December 31,
 2021
2020
2019
Restricted Stock and RSU GrantsRestricted Stock and RSU GrantsRestricted Stock and RSU Grants
DirectorsOfficers and Employees of the ManagerTotalDirectorsOfficers and Employees of the ManagerTotalDirectorsOfficers and Employees of the ManagerTotal
Compensation expense $329 $1,611 $1,940 $319 $1,020 $1,339 $343 $1,537 $1,880 
Total fair value of shares vested (1)460 1,009 1,469 315 849 1,164 373 939 1,312 
Weighted average grant date fair value403 4,255 4,658 292 2,898 3,190 302 2,527 2,829 
___________________________

(1)    Based on the closing price of the Company’s common stock on the NYSE on each vesting date.

As of December 31, 2021, 2020 and 2019, the total compensation cost related to non-vested awards not yet recognized totaled $6.0 million, $3.7 million and $3.1 million, respectively, and the weighted average period over which the non-vested awards are expected to be recognized is 2.3 years.
v3.22.0.1
EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
The following information sets forth the computations of basic and diluted earnings per common share for the years ended December 31, 2021, 2020 and 2019 ($ in thousands, except share and per share data):

For the years ended December 31,
202120202019
Net income attributable to common stockholders$60,460 $21,840 $36,991 
Divided by:
Basic weighted average shares of common stock outstanding:42,399,613 32,977,462 28,609,282 
Weighted average non-vested restricted stock and RSUs281,892 219,046 237,359 
Diluted weighted average shares of common stock outstanding:42,681,505 33,196,508 28,846,641 
Basic earnings per common share$1.43 $0.66 $1.29 
Diluted earnings per common share$1.42 $0.66 $1.28 
v3.22.0.1
INCOME TAX
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAX INCOME TAX
    
    The Company wholly owns ACRC Lender W TRS LLC, which is a taxable REIT subsidiary (“TRS”) formed to issue and hold certain loans intended for sale. The Company also wholly owns ACRC 2017-FL3 TRS LLC, which is a TRS formed to hold a portion of the FL3 CLO Securitization and FL4 CLO Securitization (as defined below), including the portion that generates excess inclusion income. Additionally, the Company wholly owns ACRC WM Tenant LLC, which is a TRS formed to lease from an affiliate the hotel property classified as real estate owned acquired on March 8, 2019. ACRC WM Tenant LLC engaged a third-party hotel management company to operate the hotel under a management contract.

The income tax provision for the Company and the TRSs consisted of the following for the years ended December 31, 2021, 2020 and 2019 ($ in thousands):
For the years ended December 31,
 202120202019
Current $450 $82 $114 
Deferred — (99)99 
Excise tax 272 369 302 
   Total income tax expense, including excise tax$722 $352 $515 

    For the years ended December 31, 2021, 2020 and 2019, the Company incurred an expense of $272 thousand, $369 thousand and $302 thousand, respectively, for U.S. federal excise tax. Excise tax represents a 4% tax on the sum of a portion of the Company’s ordinary income and net capital gains not distributed during the calendar year (including any distribution declared in the fourth quarter and paid following January) plus any prior year shortfall. If it is determined that an excise tax liability exists for the current year, the Company will accrue excise tax on estimated excess taxable income as such taxable income is earned. The annual expense is calculated in accordance with applicable tax regulations.

The TRSs recognize interest and penalties related to unrecognized tax benefits within income tax expense in the Company’s consolidated statements of operations. Accrued interest and penalties, if any, are included within other liabilities in the Company’s consolidated balance sheets.

As of December 31, 2021, tax years 2018 through 2021 remain subject to examination by taxing authorities. The Company does not have any unrecognized tax benefits and the Company does not expect that to change in the next 12 months.
v3.22.0.1
FAIR VALUE
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
The Company follows FASB ASC Topic 820-10, Fair Value Measurement (“ASC 820-10”), which expands the application of fair value accounting. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure requirements for fair value measurements. ASC 820-10 determines fair value to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. ASC 820-10 specifies a hierarchy of valuation techniques based on the inputs used in measuring fair value.

In accordance with ASC 820-10, the inputs used to measure fair value are summarized in the three broad levels listed below:

•Level 1—Quoted prices in active markets for identical assets or liabilities.

•Level 2—Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

•Level 3—Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used.

GAAP requires disclosure of fair value information about financial and nonfinancial assets and liabilities, whether or not recognized in the financial statements, for which it is practical to estimate the value. In cases where quoted market prices are not available, fair values are based upon the application of discount rates to estimated future cash flows using market yields, or other valuation methodologies. Any changes to the valuation methodology will be reviewed by the Company’s management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while the Company anticipates that the valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financial and nonfinancial assets and liabilities could result in a different estimate of fair value at the reporting date. The Company uses inputs that are current as of the measurement date, which may fall within periods of market dislocation, during which price transparency may be reduced.

Recurring Fair Value Measurements

The Company is required to record derivative financial instruments at fair value on a recurring basis in accordance with GAAP. The fair value of interest rate derivatives was estimated using a third-party specialist, based on contractual cash flows and observable inputs comprising credit spreads.

The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021:
Level 1Level 2Level 3Total
Financial assets:
Interest rate derivatives$— $2,979 $— $2,979 
Financial liabilities:
Interest rate derivatives$—  - $— $— 

    As of December 31, 2021, the Company did not have any nonfinancial assets or liabilities required to be recorded at fair value on a recurring basis. As of December 31, 2020, the Company did not have any financial and nonfinancial assets or liabilities required to be recorded at fair value on a recurring basis.
Nonrecurring Fair Value Measurements

The Company is required to record real estate owned, a nonfinancial asset, at fair value on a nonrecurring basis in accordance with GAAP. Real estate owned consists of a hotel property that was acquired by the Company on March 8, 2019 through a deed in lieu of foreclosure. See Note 5 included in these consolidated financial statements for more information on
real estate owned. Real estate owned is recorded at fair value at acquisition using Level 3 inputs and is evaluated for indicators of impairment on a quarterly basis. Real estate owned is considered impaired when the sum of estimated future undiscounted cash flows expected to be generated by the real estate owned over the estimated remaining holding period is less than the carrying amount of such real estate owned. Cash flows include operating cash flows and anticipated capital proceeds generated by the real estate owned. An impairment charge is recorded equal to the excess of the carrying value of the real estate owned over the fair value. The fair value of the hotel property at acquisition was estimated using a third-party appraisal, which utilized standard industry valuation techniques such as the income and market approach. When determining the fair value of a hotel, certain assumptions are made including, but not limited to: (1) projected operating cash flows, including factors such as booking pace, growth rates, occupancy, daily room rates, hotel specific operating costs and future capital expenditures; and (2) projected cash flows from the eventual disposition of the hotel based upon the Company’s estimation of a hotel specific capitalization rate, hotel specific discount rates and comparable selling prices in the market.

As of December 31, 2021 and 2020, the Company did not have any financial assets or liabilities or nonfinancial liabilities required to be recorded at fair value on a nonrecurring basis.

Financial Assets and Liabilities Not Measured at Fair Value
 
As of December 31, 2021 and 2020, the carrying values and fair values of the Company’s financial assets and liabilities recorded at cost are as follows ($ in thousands):
As of December 31,
20212020
Level in Fair Value HierarchyCarrying ValueFair
Value		Carrying ValueFair
Value
Financial assets:
   Loans held for investment3$2,414,383 $2,408,463 $1,815,219 $1,800,003 
Financial liabilities:
   Secured funding agreements2$840,047 $840,047 $755,552 $755,552 
   Notes payable 350,358 51,110 61,837 63,122 
   Secured term loan3149,016 150,000 110,000 110,000 
Collateralized loan obligation securitization debt (consolidated VIEs)3861,188 863,403 443,871 443,467 
   Secured borrowings322,589 22,715 59,790 60,215 

The carrying values of cash and cash equivalents, restricted cash, interest receivable, due to affiliate liability and accrued expenses, which are all categorized as Level 2 within the fair value hierarchy, approximate their fair values due to their short-term nature.
 
Loans held for investment are recorded at cost, net of unamortized loan fees and origination costs. To determine the fair value of the collateral, the Company may employ different approaches depending on the type of collateral. The Company determined the fair value of loans held for investment based on a discounted cash flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and comparable selling prices in the market. The Secured Funding Agreements are recorded at outstanding principal, which is the Company’s best estimate of the fair value. The Company determined the fair value of the Notes Payable, Secured Term Loan, collateralized loan obligation (“CLO”) securitization debt and Secured Borrowings based on a discounted cash flow methodology, taking into consideration various factors including discount rates, actions of other lenders and comparable market quotes and recent trades for similar products.
v3.22.0.1
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
Management Agreement

The Company is party to a Management Agreement under which ACREM, subject to the supervision and oversight of the Company’s board of directors, is responsible for, among other duties, (a) performing all of the Company’s day-to-day functions, (b) determining the Company’s investment strategy and guidelines in conjunction with the Company’s board of directors, (c) sourcing, analyzing and executing investments, asset sales and financing, and (d) performing portfolio management duties. In addition, ACREM has an Investment Committee that oversees compliance with the Company’s investment strategy and guidelines, loans held for investment portfolio holdings and financing strategy.
 
In exchange for its services, ACREM is entitled to receive a base management fee, an incentive fee and expense reimbursements. In addition, ACREM and its personnel may receive grants of equity-based awards pursuant to the Company’s Amended and Restated 2012 Equity Incentive Plan and a termination fee, if applicable.
 
The base management fee is equal to 1.5% of the Company’s stockholders’ equity per annum, which is calculated and payable quarterly in arrears in cash. For purposes of calculating the base management fee, stockholders’ equity means: (a) the sum of (i) the net proceeds from all issuances of the Company’s equity securities since inception (allocated on a pro-rata daily basis for such issuances during the fiscal quarter of any such issuance), plus (ii) the Company’s retained earnings at the end of the most recently completed fiscal quarter determined in accordance with GAAP (without taking into account any non-cash equity compensation expense incurred in current or prior periods); less (b) (x) any amount that the Company has paid to repurchase the Company’s common stock since inception, (y) any unrealized gains and losses and other non-cash items that have impacted stockholders’ equity as reported in the Company’s consolidated financial statements prepared in accordance with GAAP, and (z) one-time events pursuant to changes in GAAP, and certain non-cash items not otherwise described above, in each case after discussions between ACREM and the Company’s independent directors and approval by a majority of the Company’s independent directors. As a result, the Company’s stockholders’ equity, for purposes of calculating the management fee, could be greater or less than the amount of stockholders’ equity shown in the Company’s consolidated financial statements.
 
The incentive fee is an amount, not less than zero, equal to the difference between: (a) the product of (i) 20% and (ii) the difference between (A) the Company’s Core Earnings (as defined below) for the previous 12-month period, and (B) the product of (1) the weighted average of the issue price per share of the Company’s common stock of all of the Company’s public offerings of common stock multiplied by the weighted average number of all shares of common stock outstanding including any restricted shares of the Company’s common stock, RSUs, or any shares of the Company’s common stock not yet issued, but underlying other awards granted under the Company’s Amended and Restated 2012 Equity Incentive Plan (see Note 10 included in these consolidated financial statements) in the previous 12-month period, and (2) 8%; and (b) the sum of any incentive fees earned by ACREM with respect to the first three fiscal quarters of such previous 12-month period; provided, however, that no incentive fee is payable with respect to any fiscal quarter unless cumulative Core Earnings for the 12 most recently completed fiscal quarters is greater than zero. “Core Earnings” is defined in the Management Agreement as GAAP net income (loss) computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fee, depreciation and amortization (to the extent that any of the Company’s target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), and one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between ACREM and the Company’s independent directors and after approval by a majority of the Company’s independent directors. For the years ended December 31, 2021, 2020 and 2019, the Company incurred incentive fees of $2.8 million, $0.8 million and $1.1 million, respectively.

The Company reimburses ACREM at cost for operating expenses that ACREM incurs on the Company’s behalf, including expenses relating to legal, financial, accounting, servicing, due diligence and other services, expenses in connection with the origination and financing of the Company’s investments, communications with the Company’s stockholders, information technology systems, software and data services used for the Company, travel, complying with legal and regulatory requirements, taxes, insurance maintained for the benefit of the Company as well as all other expenses actually incurred by ACREM that are reasonably necessary for the performance by ACREM of its duties and functions under the Management Agreement. Ares Management, from time to time, incurs fees, costs and expenses on behalf of more than one investment vehicle. To the extent such fees, costs and expenses are incurred for the account or benefit of more than one fund, each such investment vehicle, including the Company, will typically bear an allocable portion of any such fees, costs and expenses in proportion to the size of its investment in the activity or entity to which such expense relates (subject to the terms of each fund’s governing documents) or in such other manner as Ares Management considers fair and equitable under the circumstances, such as the relative fund size or capital available to be invested by such investment vehicles. Where an investment vehicle’s
governing documents do not permit the payment of a particular expense, Ares Management will generally pay such investment vehicle’s allocable portion of such expense. In addition, the Company is responsible for its proportionate share of certain fees and expenses, including due diligence costs, as determined by ACREM and Ares Management, including legal, accounting and financial advisor fees and related costs, incurred in connection with evaluating and consummating investment opportunities, regardless of whether such transactions are ultimately consummated by the parties thereto.
 
The Company will not reimburse ACREM for the salaries and other compensation of its personnel, except for the allocable share of the salaries and other compensation of the Company’s (a) Chief Financial Officer, based on the percentage of his time spent on the Company’s affairs and (b) other corporate finance, tax, accounting, internal audit, legal, risk management, operations, compliance and other non-investment professional personnel of ACREM or its affiliates who spend all or a portion of their time managing the Company’s affairs based on the percentage of their time spent on the Company’s affairs. The Company is also required to pay its pro-rata portion of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of ACREM and its affiliates that are required for the Company’s operations.
 
Certain of the Company’s subsidiaries, along with the Company’s lenders under certain of the Company’s Secured Funding Agreements, as well as under the CLO transaction have entered into various servicing agreements with ACREM’s subsidiary servicer, Ares Commercial Real Estate Servicer LLC (“ACRES”). The Company’s Manager will specially service, as needed, certain of the Company’s investments. Effective May 1, 2012, ACRES agreed that no servicing fees pursuant to these servicing agreements would be charged to the Company or its subsidiaries by ACRES or the Manager for so long as the Management Agreement remains in effect, but that ACRES will continue to receive reimbursement for overhead related to servicing and operational activities pursuant to the terms of the Management Agreement.

The term of the Management Agreement ends on May 1, 2022, with automatic one-year renewal terms thereafter. Except under limited circumstances, upon a termination of the Management Agreement, the Company will pay ACREM a termination fee equal to three times the average annual base management fee and incentive fee received by ACREM during the 24-month period immediately preceding the most recently completed fiscal quarter prior to the date of termination, each as described above.

The following table summarizes the related party costs incurred by the Company for the years ended December 31, 2021, 2020 and 2019 and amounts payable to the Company’s Manager as of December 31, 2021 and 2020 ($ in thousands):
IncurredPayable
For the years ended December 31,As of December 31,
20212020201920212020
Affiliate Payments
Management fees $9,384 $7,323 $6,311 $2,613 $1,854 
Incentive fees2,752 836 1,052 830 533 
General and administrative expenses 3,016 3,653 3,026 703 762 
Direct costs (1)9 100 192 10 1 
   Total$15,161 $11,912 $10,581 $4,156 $3,150 
_______________________________

(1)    For the years ended December 31, 2021, 2020 and 2019, direct costs incurred are included within general and administrative expenses in the Company’s consolidated statements of operations.

Investments in Loans

From time to time, the Company may co-invest with other investment vehicles managed by Ares Management or its affiliates, including the Manager, and their portfolio companies, including by means of splitting investments, participating in investments or other means of syndication of investments. For such co-investments, the Company expects to act as the administrative agent for the holders of such investments provided that the Company maintains a majority of the aggregate investment. No fees will be received by the Company for performing such service. The Company will be responsible for its pro-rata share of costs and expenses for such co-investments, including due diligence costs for transactions which fail to close. The Company’s investment in such co-investments are made on a pari-passu basis with the other Ares managed investment vehicles and the Company is not obligated to provide, nor has it provided, any financial support to the other Ares managed investment vehicles. As such, the Company’s risk is limited to the carrying value of its investment and the Company recognizes only the
carrying value of its investment in its consolidated balance sheets. As of December 31, 2021 and 2020, the total outstanding principal balance for co-investments held by the Company was $158.3 million and $45.1 million, respectively.

Loan Purchases From Affiliate

An affiliate of the Company’s Manager maintains a $200 million real estate debt warehouse investment vehicle (the “Ares Warehouse Vehicle”) that holds Ares Management originated commercial real estate loans, which are made available to purchase by other investment vehicles, including the Company and other Ares Management managed investment vehicles. From time to time, the Company may purchase loans from the Ares Warehouse Vehicle. The Company’s Manager will approve the purchase of such loans only on terms, including the consideration to be paid, that are determined by the Company’s Manager in good faith to be appropriate for the Company once the Company has sufficient liquidity. The Company is not obligated to purchase any loans originated by the Ares Warehouse Vehicle. In addition, from time to time, the Company may purchase loans, including participations in loans, from other Ares Management managed investment vehicles. Loans purchased by the Company from the Ares Warehouse Vehicle or other Ares Management managed investment vehicles are purchased at fair value as determined by an independent third-party valuation expert and are subject to approval by a majority of the Company’s independent directors.

In January 2021, the Company purchased a $105.5 million senior mortgage loan on an office property located in Illinois from the Ares Warehouse Vehicle. At the January 2021 purchase date, the outstanding principal balance was $103.6 million, which is included within loans held for investment in the Company’s consolidated balance sheets.

In January 2021, the Company purchased a $5.6 million senior mortgage loan on a self storage property located in Illinois from the Ares Warehouse Vehicle. At the January 2021 purchase date, the outstanding principal balance was $5.4 million, which is included within loans held for investment in the Company’s consolidated balance sheets.

In January 2021, the Company purchased a fully funded $6.4 million senior mortgage loan on a self storage property located in Florida from the Ares Warehouse Vehicle, which is included within loans held for investment in the Company’s consolidated balance sheets.

In January 2021, the Company purchased a fully funded $4.4 million senior mortgage loan on a self storage property located in Florida from the Ares Warehouse Vehicle, which is included within loans held for investment in the Company’s consolidated balance sheets.

In January 2021, the Company purchased a fully funded $7.0 million senior mortgage loan on a self storage property located in Florida from the Ares Warehouse Vehicle, which is included within loans held for investment in the Company’s consolidated balance sheets.

In January 2021, the Company purchased a fully funded $10.8 million senior mortgage loan on a self storage property located in Florida from the Ares Warehouse Vehicle, which is included within loans held for investment in the Company’s consolidated balance sheets.

In January 2021, the Company purchased a $6.5 million senior mortgage loan on a self storage property located in Missouri from the Ares Warehouse Vehicle. At the January 2021 purchase date, the outstanding principal balance was $5.9 million, which is included within loans held for investment in the Company’s consolidated balance sheets.

In May 2021, the Company purchased a $100.7 million senior mortgage loan on an industrial property located in Illinois from the Ares Warehouse Vehicle. At the May 2021 purchase date, the outstanding principal balance was $62.1 million, which is included within loans held for investment in the Company’s consolidated balance sheets.

In June 2021, the Company purchased a fully funded $40.5 million senior mortgage loan on a portfolio of self storage properties located in New Jersey from the Ares Warehouse Vehicle, which is included within loans held for investment in the Company’s consolidated balance sheets.

In June 2021, the Company purchased a $44.7 million senior mortgage loan on an industrial property located in New Jersey from the Ares Warehouse Vehicle. At the June 2021 purchase date, the outstanding principal balance was $23.2 million, which is included within loans held for investment in the Company’s consolidated balance sheets.

In July 2021, the Company purchased a $78.3 million pari-passu participation in a $227.1 million senior mortgage loan on a mixed use property located in New York from an Ares Management managed investment vehicle. At the July 2021
purchase date, the outstanding principal balance was $75.0 million, which is included within loans held for investment in the Company’s consolidated balance sheets.

In August 2021, the Company purchased an $85.0 million pari-passu note in a senior mortgage loan on an office property located in North Carolina from an Ares Management managed investment vehicle. At the August 2021 purchase date, the outstanding principal balance was $64.6 million, which is included within loans held for investment in the Company’s consolidated balance sheets.

In September 2021, the Company purchased a $26.0 million pari-passu participation in a $115.7 million senior mortgage loan on an office property located in Arizona from the Ares Warehouse Vehicle. At the September 2021 purchase date, the outstanding principal balance of the purchased participation was $17.4 million, which is included within loans held for investment in the Company’s consolidated balance sheets. At origination, the Arizona office senior mortgage loan was bifurcated between an $89.7 million senior participation, which was originated by the Company, and a $26.0 million senior participation, which was originated by the Ares Warehouse Vehicle.

In December 2021, the Company purchased a fully funded $67.0 million senior mortgage loan on a multifamily property and an office property both located in South Carolina from the Ares Warehouse Vehicle, which is included within loans held for investment in the Company’s consolidated balance sheets.

In December 2021, the Company purchased a fully funded $23.1 million senior mortgage loan on a multifamily property located in Washington from the Ares Warehouse Vehicle, which is included within loans held for investment in the Company’s consolidated balance sheets.

In December 2021, the Company purchased a $30.9 million senior mortgage loan on an industrial property located in Texas from the Ares Warehouse Vehicle. At the December 2021 purchase date, the outstanding principal balance was $25.3 million, which is included within loans held for investment in the Company’s consolidated balance sheets.

In December 2021, the Company purchased a fully funded $25.5 million senior mortgage loan on an industrial property located in Florida from the Ares Warehouse Vehicle, which is included within loans held for investment in the Company’s consolidated balance sheets.
v3.22.0.1
DIVIDENDS AND DISTRIBUTIONS
 12 Months Ended
Dec. 31, 2021
DIVIDENDS AND DISTRIBUTIONS  
DIVIDENDS AND DISTRIBUTIONS DIVIDENDS AND DISTRIBUTIONS
The following table summarizes the Company’s dividends declared during the years ended December 31, 2021, 2020 and 2019 ($ in thousands, except per share data):

Date DeclaredRecord DatePayment DatePer Share AmountTotal Amount
November 3, 2021December 31, 2021January 19, 2022$0.35 (1)$16,674 
July 30, 2021September 30, 2021October 15, 20210.35 (1)16,524 
May 4, 2021June 30, 2021July 15, 20210.35 (1)16,528 
February 17, 2021March 31, 2021April 15, 20210.35 (1)14,248 
Total cash dividends declared for the year ended December 31, 2021
$1.40 $63,974 
December 15, 2020December 30, 2020January 15, 2021$0.33 $11,124 
September 16, 2020September 30, 2020October 15, 20200.33 11,072 
June 19, 2020June 30, 2020July 15, 20200.33 11,072 
February 20, 2020March 31, 2020April 15, 20200.33 11,057 
Total cash dividends declared for the year ended December 31, 2020
$1.32 $44,325 
November 8, 2019December 30, 2019January 15, 2020$0.33 $9,546 
July 26, 2019September 30, 2019October 15, 20190.33 9,526 
May 1, 2019June 28, 2019July 16, 20190.33 9,527 
February 21, 2019March 29, 2019April 16, 20190.33 9,520 
Total cash dividends declared for the year ended December 31, 2019$1.32 $38,119 
_______________________________
(1) Consists of a regular cash dividend of $0.33 and a supplemental cash dividend of $0.02.
v3.22.0.1
VARIABLE INTEREST ENTITIES
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES
Consolidated VIEs

As discussed in Note 2, the Company evaluates all of its investments and other interests in entities for consolidation, including its investments in the CLO Securitizations (as defined below), which are considered to be variable interests in VIEs.

CLO Securitizations

On January 11, 2019, ACRE Commercial Mortgage 2017-FL3 Ltd. (the “FL3 Issuer”) and ACRE Commercial Mortgage 2017-FL3 LLC (the “FL3 Co-Issuer”), both wholly-owned indirect subsidiaries of the Company, entered into an Amended and Restated Indenture (the “FL3 Amended Indenture”) with Wells Fargo Bank, National Association, as advancing agent and note administrator, and Wilmington Trust, National Association, as trustee, which governs the approximately $504.1 million principal balance of secured floating rate notes (the “FL3 Notes”) issued by the FL3 Issuer and $52.9 million of preferred equity in the FL3 Issuer (the “FL3 CLO Securitization”). The FL3 Amended Indenture amends and restates, and replaces in its entirety, the indenture for the CLO securitization issued in March 2017, which governed the issuance of approximately $308.8 million principal balance of secured floating rate notes and $32.4 million of preferred equity in the FL3 Issuer.

As of December 31, 2021, the FL3 Notes were collateralized by interests in a pool of 16 mortgage assets having a total principal balance of $451.6 million (the “FL3 Mortgage Assets”) that were closed by a wholly-owned subsidiary of the Company and approximately $105.4 million of receivables related to repayments of outstanding principal on previous mortgage assets. As of December 31, 2020, the FL3 Notes were collateralized by interests in a pool of 15 mortgage assets having a total principal balance of approximately $550.6 million that were closed by a wholly-owned subsidiary of the Company and
approximately $6.4 million of receivables related to repayments of outstanding principal on previous mortgage assets. On April 13, 2021, the FL3 Issuer and the FL3 Co-Issuer entered into a First Supplement to Amended and Restated Indenture (the “2021 Amended Indenture”) with Wells Fargo Bank, National Association, as advancing agent and note administrator, and Wilmington Trust, National Association, as trustee, which governs the FL3 CLO Securitization. The purpose of the 2021 Amended Indenture was to, among other things, extend the reinvestment period to March 31, 2024. During the reinvestment period, the Company may direct the FL3 Issuer to acquire additional mortgage assets meeting applicable reinvestment criteria using the principal repayments from the FL3 Mortgage Assets, subject to the satisfaction of certain conditions, including receipt of a Rating Agency Confirmation and investor approval of the new mortgage assets.
 
The contribution of the FL3 Mortgage Assets to the Issuer is governed by a Mortgage Asset Purchase Agreement between the Seller and the FL3 Issuer, and acknowledged by the Company solely for purposes of confirming its status as a REIT, in which the Seller made certain customary representations, warranties and covenants.
 
In connection with the securitization, the FL3 Issuer and FL3 Co-Issuer offered and issued the following classes of Notes: Class A, Class A-S, Class B, Class C and Class D Notes (collectively, the “FL3 Offered Notes”) to a third party. The Company retained (through one of its wholly-owned subsidiaries) approximately $58.5 million of the FL3 Notes and all of the $52.9 million of preferred equity in the FL3 Issuer, which totaled $111.4 million. The Company, as the holder of the subordinated FL3 Notes and all of the preferred equity in the FL3 Issuer, has the obligation to absorb losses of the CLO, since the Company has a first loss position in the capital structure of the CLO.

On January 28, 2021, ACRE Commercial Mortgage 2021-FL4 Ltd. (the “FL4 Issuer”) and ACRE Commercial Mortgage 2021-FL4 LLC (the “FL4 Co-Issuer”), both wholly owned indirect subsidiaries of the Company, entered into an Indenture (the “FL4 Indenture”) with ACRC Lender LLC, a wholly owned subsidiary of the Company (the “Seller”), as advancing agent, Wells Fargo Bank, National Association, as note administrator, and Wilmington Trust, National Association, as trustee, which governs the issuance of approximately $603.0 million principal balance secured floating rate notes (the “FL4 Notes”) and $64.3 million of preferred equity in the FL4 Issuer (the “FL4 CLO Securitization”). For U.S. federal income tax purposes, the FL4 Issuer and FL4 Co-Issuer are disregarded entities.

As of December 31, 2021, the FL4 Notes were collateralized by interests in a pool of 17 mortgage assets having a total principal balance of approximately $522.8 million (the “FL4 Mortgage Assets”) that were closed by a wholly-owned subsidiary of the Company and approximately $23.2 million of receivables related to repayments of outstanding principal on previous mortgage assets. During the period ending in April 2024 (the “Companion Participation Acquisition Period”), the FL4 Issuer may use certain principal proceeds from the FL4 Mortgage Assets to acquire additional funded pari-passu participations related to the FL4 Mortgage Assets that meet certain acquisition criteria.

The sale of the FL4 Mortgage Assets to the FL4 Issuer is governed by a FL4 Mortgage Asset Purchase Agreement between the Seller and the FL4 Issuer, and acknowledged by the Company solely for purposes of confirming its status as a REIT, in which the Seller made certain customary representations, warranties and covenants.

In connection with the FL4 CLO Securitization, the FL4 Issuer and FL4 Co-Issuer offered and issued the following classes of FL4 Notes to third party investors: Class A, Class A-S, Class B, Class C, Class D and Class E Notes (collectively, the “FL4 Offered Notes”). A wholly owned subsidiary of the Company retained approximately $62.5 million of the FL4 Notes and all of the $64.3 million of preferred equity in the FL4 Issuer, which totaled $126.8 million. The Company, as the holder of the subordinated FL4 Notes and all of the preferred equity in the FL4 Issuer, has the obligation to absorb losses of the FL4 CLO Securitization, since the Company has a first loss position in the capital structure of the FL4 CLO Securitization. During the year ended December 31, 2021, the Company paid down $121.2 million of the FL4 Offered Notes.
 
The FL3 CLO Securitization and the FL4 CLO Securitization are collectively referred to as the “CLO Securitizations.” As the directing holder of the CLO Securitizations, the Company has the ability to direct activities that could significantly impact the CLO Securitizations’ economic performance. ACRES is designated as special servicer of the CLO Securitizations and has the power to direct activities during the loan workout process on defaulted and delinquent loans, which is the activity that most significantly impacts the CLO Securitizations’ economic performance. ACRES did not waive the special servicing fee, and the Company pays its overhead costs. If an unrelated third party had the right to unilaterally remove the special servicer, then the Company would not have the power to direct activities that most significantly impact the CLO Securitizations’ economic performance. In addition, there were no substantive kick-out rights of any unrelated third party to remove the special servicer without cause. The Company’s subsidiaries, as directing holders, have the ability to remove the special servicer without cause. Based on these factors, the Company is determined to be the primary beneficiary of each of the CLO Securitizations; thus, the CLO Securitizations are consolidated into the Company’s consolidated financial statements.
The CLO Securitizations are consolidated in accordance with FASB ASC Topic 810 and are structured as pass through entities that receive principal and interest on the underlying collateral and distributes those payments to the note holders, as applicable. The assets and other instruments held by the CLO Securitizations are restricted and can only be used to fulfill the obligations of the respective CLO Securitizations. Additionally, the obligations of the CLO Securitizations do not have any recourse to the general credit of any other consolidated entities, nor to the Company as the primary beneficiary.The inclusion of the assets and liabilities of the CLO Securitizations of which the Company is deemed the primary beneficiary has no economic effect on the Company. The Company’s exposure to the obligations of the CLO Securitizations are generally limited to its investment in the entity. The Company is not obligated to provide, nor has it provided, any financial support for the consolidated structures. As such, the risk associated with the Company’s involvement in the CLO Securitizations are limited to the carrying value of its investment in each of the entities. As of December 31, 2021, the Company’s maximum risk of loss was $238.2 million, which represents the carrying value of its investments in the CLO Securitizations.
v3.22.0.1
SUBSEQUENT EVENTS
 12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
The Company’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-K or would be required to be recognized in the consolidated financial statements as of and for the year ended December 31, 2021, except as disclosed below.

On January 13, 2022, the Company amended the Citibank Facility to, among other things, extend the initial maturity date and funding availability period to January 13, 2025, subject to two 12-month extensions, each of which may be exercised at the Company’s option assuming no existing defaults under the Citibank Facility and applicable extension fees being paid, which, if both were exercised, would extend the maturity date of the Citibank Facility to January 13, 2027. The amendment also modified the interest rate provisions in the Citibank Facility such that advances under the Citibank Facility in connection with new loans pledged to the Citibank Facility will utilize term SOFR or a SOFR average, at the election of the Company.

On February 10, 2022, ACRC Lender C LLC, a subsidiary of the Company and the Company, as guarantor, entered into a second amendment to the Second Amended and Restated Substitute Guaranty related to the Citibank Facility. The purpose of the amendment is to, among other things, (i) increase the guarantor’s permitted ratio of indebtedness to tangible net worth to not more than 4.5:1 and (ii) remove the guarantor’s financial covenant that limited recourse indebtedness.

On February 10, 2022, ACRC Lender MS LLC, a subsidiary of the Company and the Company, as guarantor, entered into an amendment to the Guaranty and Indemnity related to the Morgan Stanley Facility. The purpose of the amendment is to, among other things, (i) increase the guarantor’s permitted ratio of indebtedness to tangible net worth to not more than 4.5:1 and (ii) remove the guarantor’s financial covenant that limited recourse indebtedness.

On February 10, 2022, the Company, as guarantor, entered into a second amendment to the Guaranty related to the MetLife Facility. The purpose of the amendment is to, among other things, (i) increase the guarantor’s permitted ratio of indebtedness to tangible net worth to not more than 4.5:1 and (ii) remove the guarantor’s financial covenant that limited recourse indebtedness.

On February 10, 2022, ACRC Lender W LLC and ACRC Lender W TRS LLC (collectively, “ACRC Lender W”), each a subsidiary of the Company, and the Company, as guarantor, entered into (i) the Third Amended and Restated Master Repurchase and Securities Contract and (ii) the Second Amended and Restated Guarantee, each with Wells Fargo. The purpose of the amendments are to, among other things, (a) modify the interest rate provisions in the Wells Fargo Facility such that financings under the Wells Fargo Facility in connection with new loans pledged to the Wells Fargo Facility will utilize term SOFR or a SOFR average, as agreed between ACRC Lender W and Wells Fargo, (b) increase the guarantor’s permitted ratio of indebtedness to tangible net worth to not more than 4.5:1 and (c) remove the guarantor’s financial covenant that limited recourse indebtedness.

On February 14, 2022, the Company originated and fully funded a $5.9 million senior mortgage loan on an industrial property located in Florida. The loan has a per annum interest rate of LIBOR plus 5.90%.

On February 14, 2022, the Company originated and fully funded a $4.7 million senior mortgage loan on an industrial property located in Florida. The loan has a per annum interest rate of LIBOR plus 5.75%.
The Company’s Board of Directors declared a regular cash dividend of $0.33 per common share and a supplemental cash dividend of $0.02 per common share for the first quarter of 2022. The first quarter 2022 and supplemental cash dividends will be payable on April 14, 2022 to common stockholders of record as of March 31, 2022.
v3.22.0.1
SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with United States generally accepted accounting principles (“GAAP”) and include the accounts of the Company, the consolidated variable interest entities (“VIEs”) that the Company controls and of which the Company is the primary beneficiary, and the Company’s wholly-owned subsidiaries. The consolidated financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the Company’s results of operations and financial condition as of and for the periods presented. All intercompany balances and transactions have been eliminated.
Use of Estimates in the Preparation of Financial Statements
Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. As of the date of this Annual Report, the novel coronavirus (“COVID-19”) pandemic and preventative measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns or the re-introduction of business shutdowns, cancellations of events and restrictions on travel, significant reductions in demand for certain goods and services, reductions in business activity and financial transactions and overall economic and financial market instability both globally and in the United States. The COVID-19 pandemic continues to disrupt global supply chains, has caused labor shortages and has added broad inflationary pressures, which has the potential to negatively impact the Company and its borrowers. While several countries, as well as certain states in the United States, have relaxed the public health restrictions through 2021 partly as a result of the introduction of vaccines, recurring COVID-19 outbreaks, including outbreaks caused by different virus variants, continue to lead to the re-introduction of certain restrictions in certain states in the United States and globally. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may experience a recession, and we anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States.
The Company believes the estimates and assumptions underlying its consolidated financial statements are reasonable and supportable based on the information available as of December 31, 2021, however, uncertainty over the ultimate impact the COVID-19 pandemic will have on the global economy and the Company’s business, makes any estimates and assumptions as of December 31, 2021 inherently less certain than they would be absent the current and potential impacts of the COVID-19 pandemic. Actual results could differ from those estimates.
Variable Interest Entities
Variable Interest Entities

The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary and it does not consolidate the VIE.
 
To assess whether the Company has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Company considers all facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE.

To assess whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers all of its economic interests, including debt and equity investments, servicing fees, and other arrangements deemed to be variable interests in the VIE. This assessment requires that the Company applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Company.

For VIEs of which the Company is determined to be the primary beneficiary, all of the underlying assets, liabilities, equity, revenue and expenses of the structures are consolidated into the Company’s consolidated financial statements.

The Company performs an ongoing reassessment of: (1) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore are subject to the VIE consolidation framework, and (2) whether changes in the facts and circumstances regarding its involvement with a VIE cause the Company’s consolidation conclusion regarding the VIE to change. See Note 16 included in these consolidated financial statements for further discussion of the Company’s VIEs.
Cash, Cash Equivalents and Restricted Cash
Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions. Cash and short‑term investments with an original maturity of three months or less when acquired are considered cash and cash equivalents for the purpose of the consolidated balance sheets and statements of cash flows.

Restricted cash includes deposits required under certain Secured Funding Agreements (each individually defined in Note 6 included in these consolidated financial statements).
Concentration of Credit Risk
Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and restricted cash, loans held for investment and interest receivable. The Company places its cash and cash equivalents with financial institutions and, at times, cash held may exceed the Federal Deposit Insurance Corporation insured limit. The Company has exposure to credit risk on its loans held for investment. The Company and the Company’s Manager seek to manage credit risk by performing due diligence prior to origination or acquisition and through the use of non‑recourse financing, when and where available and appropriate.
Loans Held for Investment
Loans Held for Investment

    The Company originates CRE debt and related instruments generally to be held for investment. Loans that are held for investment are carried at cost, net of unamortized loan fees and origination costs (the “carrying value”). Loans are generally collateralized by real estate. The extent of any credit deterioration associated with the performance and/or value of the underlying collateral property and the financial and operating capability of the borrower could impact the expected amounts received. The Company monitors performance of its loans held for investment portfolio under the following methodology: (1) borrower review, which analyzes the borrower’s ability to execute on its original business plan, reviews its financial condition, assesses pending litigation and considers its general level of responsiveness and cooperation; (2) economic review, which considers underlying collateral (i.e. leasing performance, unit sales and cash flow of the collateral and its ability to cover debt service, as well as the residual loan balance at maturity); (3) property review, which considers current environmental risks, changes in insurance costs or coverage, current site visibility, capital expenditures and market perception; and (4) market review, which analyzes the collateral from a supply and demand perspective of similar property types, as well as from a capital markets perspective. Such analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, and the borrower’s exit plan, among other factors.

    Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed against interest income in the period the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding the borrower’s ability to make pending principal and interest payments. Non-accrual loans are restored to accrual status when past due principal and interest are paid and, in management’s judgment, are likely to remain current. The Company may make exceptions to placing a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection.
    Loan balances that are deemed to be uncollectible are written off as a realized loss and are deducted from the current expected credit loss reserve. The write-offs are recorded in the period in which the loan balance is deemed uncollectible based on management’s judgment.
Current Expected Credit Losses Current Expected Credit Losses Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, requires the Company to reflect current expected credit losses (“CECL”) on both the outstanding balances and unfunded commitments on loans held for investment and requires consideration of a broad range of historical experience adjusted for current conditions and reasonable and supportable forecast information to inform credit loss estimates (the “CECL Reserve”). ASU No. 2016-13 was effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. ASU No. 2016-13 was adopted by the Company on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of January 1, 2020. Subsequent period increases and decreases to expected credit losses impact earnings and are recorded within provision for current expected credit losses in the Company’s consolidated statements of operations. The CECL Reserve related to outstanding balances on loans held for investment required under ASU No. 2016-13 is a valuation account that is deducted from the amortized cost basis of the Company’s loans held for investment in the Company’s consolidated balance sheets. The CECL Reserve related to unfunded commitments on loans held for investment is recorded within other liabilities in the Company's consolidated balance sheets. See Note 4 included in these consolidated financial statements for CECL related disclosures.
Loans Held for Sale
Loans Held for Sale

    Although the Company generally holds its target investments as long-term investments, the Company may occasionally classify some of its investments as held for sale. Investments held for sale are carried at fair value within loans held for sale, at fair value in the Company’s consolidated balance sheets, with changes in fair value recorded through earnings.
Real Estate Owned
Real Estate Owned

    Real estate assets are carried at their estimated fair value at acquisition and are presented net of accumulated depreciation and impairment charges. The Company allocates the purchase price of acquired real estate assets based on the fair value of the acquired land, building, furniture, fixtures and equipment.

    Real estate assets are depreciated using the straight-line method over estimated useful lives of up to 40 years for buildings and improvements and up to 15 years for furniture, fixtures and equipment. Renovations and/or replacements that improve or extend the life of the real estate asset are capitalized and depreciated over their estimated useful lives. The cost of ordinary repairs and maintenance are expensed as incurred.

    Real estate assets are evaluated for indicators of impairment on a quarterly basis. Factors that the Company may consider in its impairment analysis include, among others: (1) significant underperformance relative to historical or anticipated operating results; (2) significant negative industry or economic trends; (3) costs necessary to extend the life or improve the real estate asset; (4) significant increase in competition; and (5) ability to hold and dispose of the real estate asset in the ordinary course of business. A real estate asset is considered impaired when the sum of estimated future undiscounted cash flows expected to be generated by the real estate asset over the estimated remaining holding period is less than the carrying amount of such real estate asset. Cash flows include operating cash flows and anticipated capital proceeds generated by the real estate asset. An impairment charge is recorded equal to the excess of the carrying value of the real estate asset over the fair value. When determining the fair value of a real estate asset, the Company makes certain assumptions including, but not limited to, consideration of projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the real estate asset based upon the Company’s estimate of a capitalization rate and discount rate.

    The Company reviews its real estate assets, from time to time, in order to determine whether to sell such assets. Real estate assets are classified as held for sale when the Company commits to a plan to sell the asset, when the asset is being actively marketed for sale at a reasonable price and the sale of the asset is probable and the transfer of the asset is expected to qualify for recognition as a completed sale within one year. Real estate assets that are held for sale are carried at the lower of the asset’s carrying amount or its fair value less costs to sell.
Debt Issuance Costs
Debt Issuance Costs

Debt issuance costs under the Company’s indebtedness are capitalized and amortized over the term of the respective debt instrument. Unamortized debt issuance costs are expensed when the associated debt is repaid prior to maturity. Debt issuance costs related to debt securitizations are capitalized and amortized over the term of the underlying loans using the effective interest method. When an underlying loan is prepaid in a debt securitization and the outstanding principal balance of the securitization debt is reduced, the related unamortized debt issuance costs are charged to expense based on a pro‑rata share of the debt issuance costs being allocated to the specific loans that were prepaid. Amortization of debt issuance costs is included
within interest expense, except as noted below, in the Company’s consolidated statements of operations while the unamortized balance on (i) Secured Funding Agreements (each individually defined in Note 6 included in these consolidated financial statements) is included within other assets and (ii) Notes Payable, the Secured Term Loan (each defined in Note 6 included in these consolidated financial statements) and Secured Borrowings (defined in Note 7 included in these consolidated financial statements) and debt securitizations are each included as a reduction to the carrying amount of the liability, in the Company’s consolidated balance sheets. Amortization of debt issuance costs for the note payable on the hotel property that is recognized as real estate owned in the Company’s consolidated balance sheets (see Note 6 included in these consolidated financial statements for additional information on the note payable) is included within expenses from real estate owned in the Company’s consolidated statements of operations.
Derivative Financial Instruments
Derivative Financial Instruments

Derivative financial instruments are classified as either other assets (gain positions) or other liabilities (loss positions) in the Company’s consolidated balance sheets at fair value. These amounts may be offset to the extent that there is a legal right to offset and if elected by management.

On the date the Company enters into a derivative contract, the Company designates each contract as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, or as a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, the Company formally documents the hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and an evaluation of the effectiveness of its hedged transaction.

The Company performs a formal assessment on a quarterly basis on whether the derivative designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. Changes in the fair value of derivative contracts are recorded each period in either current earnings or other comprehensive income (“OCI”), depending on whether the derivative is designated as part of a hedge transaction and, if so, the type of hedge transaction. For derivatives that are designated as cash flow hedges, the effective portion of the unrealized gains or losses on these contracts is recorded in OCI. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in current earnings prospectively. The Company does not enter into derivatives for trading or speculative purposes.
Revenue Recognition
Revenue Recognition

    Interest income is accrued based on the outstanding principal amount and the contractual terms of each loan. For loans held for investment, the origination fees, contractual exit fees and direct loan origination costs are also recognized in interest income over the initial loan term as a yield adjustment using the effective interest method.

    Revenue from real estate owned represents revenue associated with the operations of a hotel property classified as real estate owned. Revenue from the operation of the hotel property is recognized when guestrooms are occupied, services have been rendered or fees have been earned. Revenues are recorded net of any discounts and sales and other taxes collected from customers. Revenues consist of room sales, food and beverage sales and other hotel revenues.
Net Interest Margin and Interest Expense Net Interest Margin and Interest Expense    Net interest margin in the Company’s consolidated statements of operations serves to measure the performance of the Company’s loans as compared to its use of debt leverage. The Company includes interest income from its loans and interest expense related to its Secured Funding Agreements, Notes Payable, securitization debt, the Secured Term Loan (each individually defined in Note 6 included in these consolidated financial statements) and Secured Borrowings (defined in Note 7 included in these consolidated financial statements) in net interest margin.
Income Taxes
Income Taxes

The Company has elected and qualified for taxation as a REIT commencing with its taxable year ended December 31, 2012. As a result of the Company’s REIT qualification and its distribution policy, the Company does not generally pay United States federal corporate level income taxes. Many of the REIT requirements, however, are highly technical and complex. To continue to qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that the Company distributes annually to its stockholders at least 90% of the Company’s REIT taxable income prior to the deduction for dividends paid. To the extent that the Company distributes less than 100% of its REIT taxable income in any tax year (taking into account any distributions made in a subsequent tax year under Sections 857(b)(9) or 858 of the Code), the Company will pay tax at regular corporate rates on that undistributed portion. Furthermore, if the Company distributes less than the sum of 1) 85% of its ordinary income for the calendar year, 2) 95% of its capital gain net income for the calendar year, and 3) any undistributed shortfall from its prior calendar year (the “Required Distribution”) to its stockholders during any calendar year (including any distributions declared by the last day of the calendar year but paid in the subsequent year), then it is required to pay a non-deductible excise tax equal to 4% of any shortfall between the Required Distribution and the amount that was actually distributed. The 90% distribution requirement does not require the distribution of net capital gains. However, if the Company elects to retain any of its net capital gain for any tax year, it must notify its stockholders and pay tax at regular corporate rates on the retained net capital gain. The stockholders must include their proportionate share of the retained net capital gain in their taxable income for the tax year, and they are deemed to have paid the REIT’s tax on their proportionate share of the retained capital gain. Furthermore, such retained capital gain may be subject to the nondeductible 4% excise tax. If it is determined that the Company’s estimated current year taxable income will be in excess of estimated dividend distributions (including capital gain dividend) for the current year from such income, the Company accrues excise tax on estimated excess taxable income as such taxable income is earned. The annual expense is calculated in accordance with applicable tax regulations. Excise tax expense is included in the line item income tax expense, including excise tax in the consolidated statements of operations included in this annual report on Form 10-K.

The Company formed a wholly-owned subsidiary, ACRC Lender W TRS LLC (“ACRC W TRS”), in December 2013 in order to issue and hold certain loans intended for sale. The Company also formed a wholly-owned subsidiary, ACRC 2017-FL3 TRS LLC (“FL3 TRS”), in March 2017 in order to hold a portion of the CLO Securitizations (as defined below), including the portion that generates excess inclusion income. Additionally, the Company also formed a wholly-owned subsidiary, ACRC WM Tenant LLC (“ACRC WM”), in March 2019 in order to lease the hotel property classified as real estate owned, which was acquired on March 8, 2019. Entity classification elections to be taxed as a corporation and taxable REIT subsidiary (“TRS”) elections were made with respect to ACRC W TRS, FL3 TRS and ACRC WM. A TRS is an entity taxed as a corporation that has not elected to be taxed as a REIT, in which a REIT directly or indirectly holds equity, and that has made a joint election with such REIT to be treated as a TRS. A TRS generally may engage in any business, including investing in assets and engaging in activities that could not be held or conducted directly by the Company without jeopardizing its qualification as a REIT. A TRS is subject to applicable United States federal, state and local income tax on its taxable income. In addition, as a REIT, the Company also may be subject to a 100% excise tax on certain transactions between it and its TRS that are not
conducted on an arm’s-length basis. For financial reporting purposes, a provision for current and deferred taxes has been established for the portion of the Company’s GAAP consolidated earnings recognized by ACRC W TRS, FL3 TRS and ACRC WM. The income tax provision is included in the line item income tax expense, including excise tax in the consolidated statements of operations included in this annual report on Form 10-K.

FASB ASC Topic 740, Income Taxes (“ASC 740”), prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. As of December 31, 2021 and 2020, based on the Company’s evaluation, there is no reserve for any uncertain income tax positions. ACRC W TRS, FL3 TRS and ACRC WM recognize interest and penalties, if any, related to unrecognized tax benefits within income tax expense in the consolidated statements of operations. Accrued interest and penalties, if any, are included within other liabilities in the consolidated balance sheets.
Comprehensive Income Comprehensive Income Comprehensive income consists of net income and OCI that are excluded from net income.
Stock-based Compensation
Stock-Based Compensation

The Company recognizes the cost of stock‑based compensation, which is included within general and administrative expenses in the Company’s consolidated statements of operations. The fair value of the time vested restricted stock or restricted stock units (“RSUs”) granted is recorded to expense on a straight‑line basis over the vesting period for the award, with an offsetting increase in stockholders’ equity. For grants to directors and officers and employees of the Manager, the fair value is determined based upon the market price of the stock on the grant date.
Earnings per Share Earnings per ShareThe Company calculates basic earnings (loss) per share by dividing net income (loss) allocable to common stockholders for the period by the weighted average shares of common stock outstanding for that period after consideration of the earnings (loss) allocated to the Company’s restricted stock, which are participating securities as defined in GAAP. Diluted earnings (loss) per share takes into effect any dilutive instruments, such as restricted stock, RSUs and convertible debt, except when doing so would be anti‑dilutive.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

    In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. ASU No. 2020-04 and ASU No. 2021-01 are effective for all entities and may be adopted retrospectively as of any date from the beginning of any interim period that includes or is subsequent to March 12, 2020 or prospectively to new modifications through December 31, 2022. The Company is currently evaluating the impact of adopting these ASUs on its consolidated financial statements.
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SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Schedule of Cash and Cash Equivalents The following table provides a reconciliation of cash, cash equivalents and restricted cash in the consolidated balance sheets to the total amount shown in the consolidated statements of cash flows ($ in thousands):
As of December 31,
202120202019
Cash and cash equivalents$50,615 $74,776 $5,256 
Restricted cash— — 379 
Total cash, cash equivalents and restricted cash shown in the Company's consolidated statements of cash flows$50,615 $74,776 $5,635 
Schedule of Interest Expense For the years ended December 31, 2021, 2020 and 2019, interest expense is comprised of the following ($ in thousands):
For the years ended December 31,
 202120202019
Secured funding agreements $16,403 $28,003 $32,859 
Notes payable (1)2,275 1,317 867 
Securitization debt20,104 12,384 19,950 
Secured term loan4,353 7,114 8,907 
Secured borrowings6,145 3,131 — 
Other (2)800 — — 
Interest expense$50,080 $51,949 $62,583 
____________________________
(1)    Excludes interest expense on the $28.3 million note payable, which is secured by a hotel property that is recognized as real estate owned in the Company’s consolidated balance sheets (see Note 6 included in these consolidated financial statements for additional information on the note payable). Interest expense on the $28.3 million note payable is included within expenses from real estate owned in the Company’s consolidated statements of operations.
(2)    Represents the net interest expense recognized from the Company’s derivative financial instruments upon periodic settlement.
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LOANS HELD FOR INVESTMENT (Tables)
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Schedule of loans held for investments
The Company’s investments in loans held for investment are accounted for at amortized cost. The following tables summarize the Company’s loans held for investment as of December 31, 2021 and 2020 ($ in thousands):

 As of December 31, 2021
Carrying Amount (1)Outstanding Principal (1)Weighted Average Unleveraged Effective YieldWeighted Average Remaining Life (Years)
Senior mortgage loans $2,397,655 $2,411,718 5.3 %(2)5.4 %(3)1.5
Subordinated debt and preferred equity investments16,728 17,394 13.7 %(2)13.7 %(3)4.0
Total loans held for investment portfolio $2,414,383 $2,429,112 5.4 %(2)5.5 %(3)1.6

 As of December 31, 2020
Carrying Amount (1)Outstanding Principal (1)Weighted Average Unleveraged Effective YieldWeighted Average Remaining Life (Years)
Senior mortgage loans $1,713,601 $1,723,638 5.9%(2)6.2 %(3)1.2
Subordinated debt and preferred equity investments101,618 102,603 13.4%(2)13.4 %(3)1.9
Total loans held for investment portfolio$1,815,219 $1,826,241 6.3%(2)6.6 %(3)1.2
______________________________

(1)The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs.
(2)Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2021 and 2020 as weighted by the outstanding principal balance of each loan.
(3)Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all interest accruing loans held by the Company as of December 31, 2021 and 2020 as weighted by the total outstanding principal balance of each interest accruing loan (excludes loans on non-accrual status as of December 31, 2021 and 2020).
Schedule of current investment portfolio
A more detailed listing of the Company’s loans held for investment portfolio based on information available as of December 31, 2021 is as follows ($ in millions, except percentages):
Loan TypeLocationOutstanding Principal (1)Carrying Amount (1)Interest RateUnleveraged Effective Yield (2)Maturity Date (3)Payment Terms (4)
Senior Mortgage Loans:
OfficeIL$150.5$149.9L+3.61%5.5%Mar 2023I/O
OfficeDiversified113.6113.4L+3.65%5.7%Jan 2023I/O
Mixed-useFL84.084.0L+4.25%5.7%Feb 2023(5)I/O
IndustrialIL77.576.9L+4.55%5.1%May 2024I/O
OfficeAZ77.476.6L+3.50%4.0%Oct 2024I/O
IndustrialNY77.377.3L+5.00%7.1%Feb 2022(6)I/O
Mixed-useNY75.074.4L+3.65%4.1%Jul 2024I/O
HotelOR/WA68.167.6L+3.45%7.4%May 2022(7)I/O
Multifamily/OfficeSC67.066.7L+2.90%3.2%Nov 2024I/O
Residential CondominiumFL66.966.3L+5.25%6.0%Jul 2023I/O
OfficeNC64.764.0L+3.55%4.2%Aug 2024I/O
OfficeNC63.963.9L+4.25%6.7%Mar 2022(8)I/O
OfficeNY61.660.8L+3.85%4.3%Aug 2025I/O
OfficeIL61.060.9L+3.75%5.3%Dec 2022(9)I/O
HotelDiversified60.660.5L+3.60%6.0%Sep 2022(10)P/I(11)
OfficeIL57.257.2L+3.95%6.2%Jun 2022(12)P/I(11)
Mixed-useCA57.156.9(13)5.5%Jan 2024I/O
MultifamilyTX56.255.6L+2.85%3.4%Dec 2024I/O
Self StorageNJ55.555.6L+3.80%4.1%Feb 2024I/O
Residential CondominiumNY54.554.5(14)10.8%May 2021(14)I/O
OfficeGA46.646.5L+3.05%5.7%Dec 2022I/O
HotelCA40.039.8L+4.12%5.8%Jan 2023(15)I/O
MultifamilySC37.437.2L+2.75%3.4%Jun 2023I/O
Student HousingCA36.236.2L+3.95%4.3%Jul 2022I/O
Mixed-useTX35.835.6(16)4.7%Sep 2022I/O
Mixed-useCA35.435.2L+4.10%6.3%Mar 2023I/O
MultifamilySC34.033.8L+6.50%10.2%Sep 2022I/O
HotelMI33.233.2L+3.95%4.3%Jul 2022I/O
HotelIL32.930.7L+4.40%—%(17)May 2022(17)I/O
OfficeCA32.332.2L+3.35%6.0%Nov 2022I/O
MultifamilyCA31.731.4L+2.90%3.3%Dec 2025I/O
Student HousingNC30.030.0L+3.15%5.9%Feb 2022I/O
MultifamilyPA29.429.3L+3.00%4.5%Dec 2022(18)I/O
OfficeIL28.528.4L+3.80%6.2%Jan 2023I/O
OfficeNC28.528.2L+3.53%6.8%May 2023I/O
IndustrialFL25.525.3L+2.90%3.2%Dec 2025I/O
IndustrialTX25.325.1L+4.65%5.1%Dec 2024I/O
Student HousingTX24.624.4L+3.45%5.6%Feb 2023I/O
IndustrialNJ23.222.9L+3.75%4.7%May 2024I/O
MultifamilyWA23.123.0L+2.90%3.2%Nov 2025I/O
OfficeCA22.922.8L+3.40%6.0%Nov 2022(19)I/O
Student HousingFL22.022.0L+3.25%5.9%Aug 2022I/O
MultifamilyTX21.921.7L+2.50%3.0%Oct 2024I/O
IndustrialCO20.820.6L+6.75%7.7%Feb 2023I/O
Student HousingAL19.519.3L+3.85%4.3%May 2024I/O
MultifamilyWA18.718.6L+3.00%5.1%Mar 2023I/O
IndustrialCA16.716.6L+3.75%6.4%Mar 2023I/O
ResidentialCA14.314.313.00%—%(20)May 2021(20)I/O
Self StoragePA12.712.6L+3.05%4.3%Oct 2024I/O
Self StorageMD12.412.3L+3.05%4.3%Oct 2024I/O
Self StorageMD12.011.9L+3.05%4.3%Oct 2024I/O
Self StorageFL10.810.8L+2.90%4.4%Dec 2023I/O
IndustrialTX10.410.2L+5.25%5.9%Dec 2024I/O
Self StorageWA10.210.1L+3.05%4.3%Oct 2024I/O
OfficeNC9.49.4L+4.00%6.6%Nov 2022I/O
Self StorageMO8.88.7L+3.05%4.3%Oct 2024I/O
Self StorageAZ8.48.4L+2.90%4.0%May 2024I/O
IndustrialPA8.08.0L+5.50%6.1%Sep 2024I/O
IndustrialFL7.87.7L+5.90%6.6%Nov 2024I/O
Self StorageAZ7.47.3L+2.90%4.1%May 2024I/O
IndustrialPA7.06.9L+5.90%6.5%Nov 2024I/O
Self StorageFL7.06.9L+2.90%4.3%Dec 2023I/O
IndustrialTN6.76.6L+5.50%6.1%Nov 2024I/O
Self StorageFL6.46.4L+2.90%4.3%Dec 2023I/O
Self StorageMO6.26.2L+3.00%4.4%Dec 2023I/O
Self StorageIL5.65.6L+3.00%4.3%Dec 2023I/O
Self StorageFL4.44.4L+2.90%4.2%Dec 2023I/O
Self StorageCO3.23.2L+2.90%3.8%Apr 2024I/O
IndustrialCO2.92.9L+6.25%6.9%Sep 2024I/O
IndustrialAZ2.72.6L+5.90%6.5%Oct 2024I/O
IndustrialGA1.31.3L+5.25%5.9%Sep 2024I/O
Subordinated Debt and Preferred Equity Investments:
OfficeNJ17.416.712.00%13.7%Jan 2026I/O
Total/Weighted Average $2,429.1$2,414.45.4%

_________________________

(1)The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs. For the loans held for investment that represent co-investments with other investment vehicles managed by Ares Management (see Note 14 included in these consolidated financial statements for additional information on co-investments), only the portion of Carrying Amount and Outstanding Principal held by the Company is reflected.
(2)Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. Unleveraged Effective Yield for each loan is calculated based on LIBOR as of December 31, 2021 or the LIBOR floor, as applicable. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2021 as weighted by the outstanding principal balance of each loan.
(3)Certain loans are subject to contractual extension options that generally vary between one and two 12-month extensions and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications.
(4)I/O = interest only, P/I = principal and interest.
(5)In March 2021, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Florida loan to February 2023.
(6)In August 2021, the borrower exercised a six-month extension option in accordance with the loan agreement, which extended the maturity date on the senior New York loan to February 2022.
(7)In March 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the Oregon/Washington loan to May 2022. At origination, the Oregon/Washington loan was structured as both a senior and mezzanine loan with the Company holding both positions. The mezzanine position of this loan, which had an outstanding principal balance of $13.1 million as of December 31, 2021, was previously on non-accrual status. During the three months ended June 30, 2021, the mezzanine position was restored to accrual status as, based on management's judgment, there is no longer reasonable doubt that principal or interest will be collected in full.
(8)In February 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the senior North Carolina loan to March 2022.
(9)In December 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which
extended the maturity date on the senior Illinois loan to December 2022.
(10)In September 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the senior diversified loan to September 2022.
(11)Amortization began on the senior Illinois loan, which had an outstanding principal balance of $57.2 million as of December 31, 2021, and the senior diversified loan, which had an outstanding principal balance of $60.6 million as of December 31, 2021, in July 2021 and October 2021, respectively. The remainder of the loans in the Company’s portfolio are non-amortizing through their primary terms.
(12)In April 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the senior Illinois loan to June 2022.
(13)At origination, the California loan was structured as both a senior and mezzanine loan with the Company holding both positions. The senior loan, which had an outstanding principal balance of $45.0 million as of December 31, 2021, accrues interest at a per annum rate of L + 3.80% and the mezzanine loan, which had an outstanding principal balance of $12.1 million as of December 31, 2021, accrues interest at a per annum rate of 12.00%.
(14)At origination, the New York loan was structured as both a senior and mezzanine loan with the Company holding the mezzanine loan and a third party holding the senior loan. In April 2021, the Company purchased the senior loan from the third party at par. The senior loan, which had an outstanding principal balance of $35.9 million as of December 31, 2021, accrues interest at a per annum rate of L + 6.00% and the mezzanine loan, which had an outstanding principal balance of $15.9 million as of December 31, 2021, accrues interest at a per annum rate of L + 14.00%. The mezzanine loan includes a $2.6 million loan to the borrower, for which such amount accrues interest at a per annum rate of 20.00%. As of December 31, 2021, the New York loan, which is collateralized by a residential condominium property located in New York, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the May 2021 maturity date. The Company evaluated this loan for impairment and concluded that no impairment charge should be recognized as of December 31, 2021 and that this loan should not be placed on non-accrual status as of December 31, 2021. This conclusion was based in part on: (1) the current estimated fair market value of the underlying collateral property and applicable reserves and (2) the estimated cash flows from the sale of units of the underlying collateral property. The estimated fair market value of the underlying collateral property was determined using the comparable market sales approach.
(15)In November 2021, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior California loan to January 2023.
(16)In March 2021, the Company and the borrower entered into a modification agreement to, among other things, split the original senior Texas loan into two separate notes. Note A, which had an outstanding principal balance of $35.3 million as of December 31, 2021, accrues interest at a per annum rate of L + 3.75% and Note B, which had an outstanding principal balance of $0.4 million as of December 31, 2021, accrues interest at a per annum rate of L+10.00%.
(17)Loan was on non-accrual status as of December 31, 2021 and therefore, there is no Unleveraged Effective Yield as the loan is non-interest accruing. In May 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the senior Illinois loan to May 2022.
(18)In October 2021, the Company and the borrower entered into a modification and extension agreement to, among other
things, extend the maturity date on the senior Pennsylvania loan to December 2022.
(19)In September 2021, the borrower exercised a one-year extension option in accordance with the loan agreement, which
extended the maturity date on the senior California loan to November 2022.
(20)Loan was on non-accrual status as of December 31, 2021 and therefore, there is no Unleveraged Effective Yield as the loan is non-interest accruing. As of December 31, 2021, the senior California loan, which is collateralized by a residential property, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the May 2021 maturity date. The Company evaluated this loan for impairment and concluded that no impairment charge should be recognized as of December 31, 2021. This conclusion was based in part on: (1) the current estimated fair market value of the underlying collateral property, (2) the estimated value of the contractual right to residual proceeds from the sale of a second residential property and (3) the recourse payment guarantee from two individuals that are the owners of the underlying collateral. The estimated fair market value of the underlying collateral property was determined using the comparable market sales approach.
Schedule of activity in loan portfolio
For the years ended December 31, 2021 and 2020, the activity in the Company’s loan portfolio was as follows ($ in thousands):
Balance at December 31, 2019$1,682,498 
Initial funding430,562 
Origination fees and discounts, net of costs(5,778)
Additional funding107,767 
Amortizing payments(2,728)
Loan payoffs(304,028)
Loans sold to third parties (1)(100,504)
Origination fee accretion7,430 
Balance at December 31, 2020$1,815,219 
Initial funding1,166,100 
Origination fees and discounts, net of costs(12,192)
Additional funding 93,973 
Amortizing payments(2,586)
Loan payoffs(654,564)
Origination fee accretion 8,433 
Balance at December 31, 2021$2,414,383 

(1) In July 2020, the Company closed the sale of a senior mortgage loan with outstanding principal of $31.5 million, which was collateralized by a hotel property located in Minnesota, to a third party. In addition, in August 2020, the Company closed the sale of two senior mortgage loans to a third party with outstanding principal of $39.9 million and $29.6 million, respectively, which were collateralized by multifamily properties located in Illinois and Texas, respectively. For the year ended December 31, 2020, the Company recognized an aggregate net realized loss of $4.0 million in the Company's consolidated statements of operations upon the sale of the three senior mortgage loans as the carrying value exceeded the sale prices of the loans. The three senior mortgage loans discussed above were previously classified as held for investment and were sold in order to rebalance and optimize the Company’s loan portfolio.
v3.22.0.1
CURRENT EXPECTED CREDIT LOSSES (Tables)
 12 Months Ended
Dec. 31, 2021
Credit Loss [Abstract]  
Financing Receivable, Allowance for Credit Loss Activity related to the CECL Reserve for outstanding balances on the Company’s loans held for investment as of and for the years ended December 31, 2021 and 2020 was as follows ($ in thousands):
Balance at December 31, 2019$— 
Impact of adoption of CECL4,440 
Provision for current expected credit losses19,164 
Write-offs— 
Recoveries— 
Balance at December 31, 2020 (1)
$23,604 
Provision for current expected credit losses335 
Write-offs— 
Recoveries— 
Balance at December 31, 2021 (1)
$23,939 
__________________________

(1)     The CECL Reserve related to outstanding balances on loans held for investment is recorded within current expected credit loss reserve in the Company's consolidated balance sheets.

Current Expected Credit Loss Reserve for Unfunded Loan Commitments    

    Activity related to the CECL Reserve for unfunded commitments on the Company’s loans held for investment as of and for the years ended December 31, 2021 and 2020 was as follows ($ in thousands):

Balance at December 31, 2019$— 
Impact of adoption of CECL611 
Provision for current expected credit losses1,021 
Write-offs— 
Recoveries— 
Balance at December 31, 2020 (1)
$1,632 
Provision for current expected credit losses(325)
Write-offs— 
Recoveries — 
Balance at December 31, 2021 (1)
$1,307 
__________________________

(1)     The CECL Reserve related to unfunded commitments on loans held for investment is recorded within other liabilities in the Company's consolidated balance sheets.
Schedule of Company Loan Risk Definitions Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows:
Ratings    Definition
1Very Low Risk
2Low Risk
3Medium Risk
4High Risk/Potential for Loss: Asset performance is trailing underwritten expectations. Loan at risk of impairment without material improvement to performance
5Impaired/Loss Likely: A loan that has a significantly increased probability of default and principal loss
Financing Receivable Credit Quality Indicators As of December 31, 2021, the carrying value, excluding the CECL Reserve, of the Company’s loans held for investment within each risk rating by year of origination is as follows ($ in thousands):
20212020201920182017PriorTotal
Risk rating:
1$28,462$—$—$9,383$—$—$37,845
2403,052—147,815———550,867
3609,751394,389273,391180,213161,32849,9041,668,976
435,922—2,649118,124——156,695
5———————
Total$1,077,187$394,389$423,855$307,720$161,328$49,904$2,414,383
v3.22.0.1
REAL ESTATE OWNED (Tables)
 12 Months Ended
Dec. 31, 2021
Real Estate Owned [Abstract]  
Schedule of Real Estate Properties
The following table summarizes the Company’s real estate owned as of December 31, 2021 and 2020 ($ in thousands):
As of December 31,
20212020
Land$10,200 $10,200 
Buildings and improvements24,281 24,281 
Furniture, fixtures and equipment4,506 4,362 
38,987 38,843 
Less: Accumulated depreciation (2,385)(1,560)
Real estate owned, net$36,602 $37,283 
v3.22.0.1
DEBT (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Schedule of outstanding balances and total commitments under Financing Agreements As of December 31, 2021 and 2020, the outstanding balances and total commitments under the Financing Agreements consisted of the following ($ in thousands):
As of December 31,
20212020
Outstanding BalanceTotal
Commitment		Outstanding BalanceTotal
Commitment
Secured Funding Agreements:
Wells Fargo Facility$399,528 $450,000 (1)$336,001 $350,000 (1)
Citibank Facility192,970 325,000 117,506 325,000 
CNB Facility— 75,000 (2)50,000 50,000 (2)
MetLife Facility20,648 180,000 104,124 180,000 
Morgan Stanley Facility226,901 250,000 147,921 150,000 
Subtotal$840,047 $1,280,000 $755,552 $1,055,000 
Notes Payable $51,110 $51,755 $63,122 $84,155 
Secured Term Loan$150,000 $150,000 (3)$110,000 $110,000 
   Total$1,041,157 $1,481,755 $928,674 $1,249,155 

______________________________

(1)The maximum commitment for the Wells Fargo Facility (as defined below) may be increased to up to $500.0 million at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsize fee. In December 2021, the Company elected to increase the maximum commitment for the Wells Fargo Facility from $350.0 million to $450.0 million.
(2)In November 2021, the Company amended the CNB Facility (as defined below) to, among other things, increase the commitment amount from $50.0 million to $75.0 million.(3)In November 2021, the Company amended the Secured Term Loan (as defined below) to, among other things, increase the commitment amount to $150.0 million.
Schedule of Maturities of Long-term Debt
At December 31, 2021, approximate principal maturities of the Company’s Financing Agreements are as follows ($ in thousands):
Wells Fargo
Facility		Citibank
Facility		CNB FacilityMetLife FacilityMorgan Stanley FacilityNotes PayableSecured Term LoanTotal
2022$399,528 $192,970 $— $20,648 $— $22,835 $— $635,981 
2023— — — — 226,901 — — 226,901 
2024— — — — — 28,275 — 28,275 
2025— — — — — — — — 
2026— — — — — — 150,000 150,000 
Thereafter— — — — — — — — 
$399,528 $192,970 $— $20,648 $226,901 $51,110 $150,000 $1,041,157 
v3.22.0.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Interest Rate Derivatives
The following tables detail our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of December 31, 2021 (notional amount in thousands):

Interest Rate DerivativesNumber of InstrumentsNotional Amount
Rate(1)
IndexWeighted Average Maturity (Years)
Interest rate swaps1$700,000 0.2075 %LIBOR(2)1.0
Interest rate caps1$220,000 0.5000 %LIBOR1.0
_______________________________

(1)    Represents fixed rate for interest rate swaps and strike rate for interest rate caps.
(2)    Subject to a 0.00% floor.
Schedule of Derivative Assets at Fair Value The following table summarizes the fair value of our derivative financial instruments ($ in thousands):
 
Fair Value of Derivatives in an Asset Position(1) as of
Fair Value of Derivatives in a Liability Position(2) as of
December 31, 2021December 31, 2020December 31, 2021December 31, 2020
Derivatives designated as hedging instruments:
Interest rate derivatives$2,979 — — — 
____________________________

(1)    Included in other assets in the Company’s consolidated balance sheets.
(2)    Included in other liabilities in the Company’s consolidated balance sheets.
v3.22.0.1
COMMITMENTS AND CONTINGENCIES (Tables)
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Schedule of loan commitments As of December 31, 2021 and 2020, the Company had the following commitments to fund various senior mortgage loans, subordinated debt investments, as well as preferred equity investments accounted for as loans held for investment ($ in thousands):
 As of December 31,
20212020
Total commitments $2,662,853 $2,013,993 
Less: funded commitments (2,429,112)(1,826,241)
Total unfunded commitments $233,741 $187,752 
v3.22.0.1
STOCKHOLDERS' EQUITY (Tables)
 12 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
Schedule of restricted stock award activity
The following tables summarize the (i) non-vested shares of restricted stock and RSUs and (ii) vesting schedule of shares of restricted stock and RSUs for the Company’s directors and officers and employees of the Manager as of December 31, 2021:

Schedule of Non-Vested Share and Share Equivalents
 Restricted Stock Grants—DirectorsRestricted Stock Grants—Officers and Employees of the ManagerRSUs—Officers and Employees of the ManagerTotal
Balance at December 31, 202022,324 68,851 267,507 358,682 
Granted 28,280 — 292,495 320,775 
Vested (33,964)(41,511)(38,176)(113,651)
Forfeited — (1,967)(24,665)(26,632)
Balance at December 31, 202116,640 25,373 497,161 539,174 
Future anticipated vesting schedule of restricted stock awards
Future Anticipated Vesting Schedule
Restricted Stock Grants—DirectorsRestricted Stock Grants—Officers and Employees of the ManagerRSUs—Officers and Employees of the ManagerTotal
202212,887 25,373 83,442 121,702 
20231,668 — 175,508 177,176 
20241,668 — 146,159 147,827 
2025417 — 92,052 92,469 
2026— — — — 
Total 16,640 25,373 497,161 539,174 
Schedule of restricted stock and restricted stock unit, activity The following table summarizes the restricted stock and RSU compensation expense included within general and administrative expenses in the Company’s consolidated statements of operations, the total fair value of shares vested and the weighted average grant date fair value of the restricted stock and RSUs granted to the Company’s directors and officers and employees of the Manager for the years ended December 31, 2021, 2020 and 2019 ($ in thousands):
 For the years ended December 31,
 2021
2020
2019
Restricted Stock and RSU GrantsRestricted Stock and RSU GrantsRestricted Stock and RSU Grants
DirectorsOfficers and Employees of the ManagerTotalDirectorsOfficers and Employees of the ManagerTotalDirectorsOfficers and Employees of the ManagerTotal
Compensation expense $329 $1,611 $1,940 $319 $1,020 $1,339 $343 $1,537 $1,880 
Total fair value of shares vested (1)460 1,009 1,469 315 849 1,164 373 939 1,312 
Weighted average grant date fair value403 4,255 4,658 292 2,898 3,190 302 2,527 2,829 
___________________________

(1)    Based on the closing price of the Company’s common stock on the NYSE on each vesting date.
v3.22.0.1
EARNINGS PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Schedule of computations of basic and diluted earnings per share
The following information sets forth the computations of basic and diluted earnings per common share for the years ended December 31, 2021, 2020 and 2019 ($ in thousands, except share and per share data):

For the years ended December 31,
202120202019
Net income attributable to common stockholders$60,460 $21,840 $36,991 
Divided by:
Basic weighted average shares of common stock outstanding:42,399,613 32,977,462 28,609,282 
Weighted average non-vested restricted stock and RSUs281,892 219,046 237,359 
Diluted weighted average shares of common stock outstanding:42,681,505 33,196,508 28,846,641 
Basic earnings per common share$1.43 $0.66 $1.29 
Diluted earnings per common share$1.42 $0.66 $1.28 
v3.22.0.1
INCOME TAX (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of components of the TRS's income tax provision
The income tax provision for the Company and the TRSs consisted of the following for the years ended December 31, 2021, 2020 and 2019 ($ in thousands):
For the years ended December 31,
 202120202019
Current $450 $82 $114 
Deferred — (99)99 
Excise tax 272 369 302 
   Total income tax expense, including excise tax$722 $352 $515 
v3.22.0.1
FAIR VALUE (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value, Assets Measured on Recurring Basis
The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021:
Level 1Level 2Level 3Total
Financial assets:
Interest rate derivatives$— $2,979 $— $2,979 
Financial liabilities:
Interest rate derivatives$—  - $— $— 
Fair Value, Liabilities Measured on Recurring Basis
The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021:
Level 1Level 2Level 3Total
Financial assets:
Interest rate derivatives$— $2,979 $— $2,979 
Financial liabilities:
Interest rate derivatives$—  - $— $— 
Schedule of carrying value and estimated fair value of the Company's financial instruments not carried at fair value on the consolidated balance sheet
As of December 31, 2021 and 2020, the carrying values and fair values of the Company’s financial assets and liabilities recorded at cost are as follows ($ in thousands):
As of December 31,
20212020
Level in Fair Value HierarchyCarrying ValueFair
Value		Carrying ValueFair
Value
Financial assets:
   Loans held for investment3$2,414,383 $2,408,463 $1,815,219 $1,800,003 
Financial liabilities:
   Secured funding agreements2$840,047 $840,047 $755,552 $755,552 
   Notes payable 350,358 51,110 61,837 63,122 
   Secured term loan3149,016 150,000 110,000 110,000 
Collateralized loan obligation securitization debt (consolidated VIEs)3861,188 863,403 443,871 443,467 
   Secured borrowings322,589 22,715 59,790 60,215 
v3.22.0.1
RELATED PARTY TRANSACTIONS (Tables)
 12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Summary of related-party costs incurred by the Company and amounts payable to the Manager
The following table summarizes the related party costs incurred by the Company for the years ended December 31, 2021, 2020 and 2019 and amounts payable to the Company’s Manager as of December 31, 2021 and 2020 ($ in thousands):
IncurredPayable
For the years ended December 31,As of December 31,
20212020201920212020
Affiliate Payments
Management fees $9,384 $7,323 $6,311 $2,613 $1,854 
Incentive fees2,752 836 1,052 830 533 
General and administrative expenses 3,016 3,653 3,026 703 762 
Direct costs (1)9 100 192 10 1 
   Total$15,161 $11,912 $10,581 $4,156 $3,150 
_______________________________
(1)    For the years ended December 31, 2021, 2020 and 2019, direct costs incurred are included within general and administrative expenses in the Company’s consolidated statements of operations.
v3.22.0.1
DIVIDENDS AND DISTRIBUTIONS (Tables)
 12 Months Ended
Dec. 31, 2021
DIVIDENDS AND DISTRIBUTIONS  
Summary of the Company's dividends declared
The following table summarizes the Company’s dividends declared during the years ended December 31, 2021, 2020 and 2019 ($ in thousands, except per share data):

Date DeclaredRecord DatePayment DatePer Share AmountTotal Amount
November 3, 2021December 31, 2021January 19, 2022$0.35 (1)$16,674 
July 30, 2021September 30, 2021October 15, 20210.35 (1)16,524 
May 4, 2021June 30, 2021July 15, 20210.35 (1)16,528 
February 17, 2021March 31, 2021April 15, 20210.35 (1)14,248 
Total cash dividends declared for the year ended December 31, 2021
$1.40 $63,974 
December 15, 2020December 30, 2020January 15, 2021$0.33 $11,124 
September 16, 2020September 30, 2020October 15, 20200.33 11,072 
June 19, 2020June 30, 2020July 15, 20200.33 11,072 
February 20, 2020March 31, 2020April 15, 20200.33 11,057 
Total cash dividends declared for the year ended December 31, 2020
$1.32 $44,325 
November 8, 2019December 30, 2019January 15, 2020$0.33 $9,546 
July 26, 2019September 30, 2019October 15, 20190.33 9,526 
May 1, 2019June 28, 2019July 16, 20190.33 9,527 
February 21, 2019March 29, 2019April 16, 20190.33 9,520 
Total cash dividends declared for the year ended December 31, 2019$1.32 $38,119 
_______________________________
(1) Consists of a regular cash dividend of $0.33 and a supplemental cash dividend of $0.02.
v3.22.0.1
ORGANIZATION (Details)
 12 Months Ended
Dec. 31, 2021
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of reportable segments 1
v3.22.0.1
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)
 12 Months Ended
Dec. 31, 2021
Furniture, fixtures and equipment  
Property, Plant and Equipment [Line Items]  
Useful life 15 years
Maximum | Buildings and improvements  
Property, Plant and Equipment [Line Items]  
Useful life 40 years
v3.22.0.1
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accounting Policies [Abstract]        
Cash and cash equivalents $ 50,615 $ 74,776 $ 5,256  
Restricted cash 0 0 379  
Total cash, cash equivalents and restricted cash shown in the Company's consolidated statements of cash flows $ 50,615 $ 74,776 $ 5,635 $ 11,468
v3.22.0.1
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Interest Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]      
Interest expense $ 50,080 $ 51,949 $ 62,583
Secured funding agreements      
Debt Instrument [Line Items]      
Interest expense 16,403 28,003 32,859
Notes Payable      
Debt Instrument [Line Items]      
Interest expense 2,275 1,317 867
Notes Payable | Notes Payable | NEW YORK      
Debt Instrument [Line Items]      
Interest expense from real estate owned 28,300    
Securitization debt      
Debt Instrument [Line Items]      
Interest expense 20,104 12,384 19,950
Secured term loan      
Debt Instrument [Line Items]      
Interest expense 4,353 7,114 8,907
Secured borrowings      
Debt Instrument [Line Items]      
Interest expense 6,145 3,131 0
Other      
Debt Instrument [Line Items]      
Interest expense $ 800 $ 0 $ 0
v3.22.0.1
LOANS HELD FOR INVESTMENT - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2021
USD ($)
loan
Dec. 31, 2020
USD ($)
loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Number of loans originated or co-originated | loan 72  
Number of loans repaid or sold, since inception | loan 116  
Total commitment $ 2,800.0  
Loans held for investment 2,400.0  
Amount funded 1,300.0  
Amount of repayments $ 657.2  
Percentage of loans held for investment having LIBOR floors 93.10%  
Weighted average floor (as a percent) 1.10%  
Impact of COVID-19    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Number of loans in non-accrual status | loan 2 3
Financing receivable, nonaccrual $ 45.0 $ 67.1
v3.22.0.1
LOANS HELD FOR INVESTMENT - Loans held for Investments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Loans held for investment $ 2,414,383 $ 1,815,219
Outstanding principal $ 2,429,112 $ 1,826,241
Weighted Average Unleveraged Effective Yield, Including Non-accrual Loans 5.40% 6.30%
Weighted Average Unleveraged Effective Yield, Excluding Non-accrual Loans 5.50% 6.60%
Weighted average remaining life 1 year 7 months 6 days 1 year 2 months 12 days
Senior mortgage loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Loans held for investment $ 2,397,655 $ 1,713,601
Outstanding principal $ 2,411,718 $ 1,723,638
Weighted Average Unleveraged Effective Yield, Including Non-accrual Loans 5.30% 5.90%
Weighted Average Unleveraged Effective Yield, Excluding Non-accrual Loans 5.40% 6.20%
Weighted average remaining life 1 year 6 months 1 year 2 months 12 days
Subordinated debt and preferred equity investments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Loans held for investment $ 16,728 $ 101,618
Outstanding principal $ 17,394 $ 102,603
Weighted Average Unleveraged Effective Yield, Including Non-accrual Loans 13.70% 13.40%
Weighted Average Unleveraged Effective Yield, Excluding Non-accrual Loans 13.70% 13.40%
Weighted average remaining life 4 years 1 year 10 months 24 days
v3.22.0.1
LOANS HELD FOR INVESTMENT - Investment Portfolio (Details)
$ in Thousands
 1 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
Sep. 30, 2021
Mar. 31, 2021
loan
Feb. 28, 2021
Aug. 31, 2020
Dec. 31, 2021
USD ($)
option
Jun. 30, 2021
USD ($)
May 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Mar. 07, 2019
USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 2,429,112         $ 2,429,112     $ 1,826,241  
Loans held for investment 2,414,383         $ 2,414,383     $ 1,815,219  
Unleveraged effective yield           5.40%        
Minimum                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Number of extension options | option           1        
Maximum                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Number of extension options | option           2        
Extension period of maturity date           12 months        
Senior Mortgage Loans | TEXAS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Loan modification agreement, number of new separate notes | loan     2              
Senior Mortgage Loans | Mixed-use | TEXAS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal 35,800         $ 35,800        
Loans held for investment 35,600         $ 35,600        
Unleveraged effective yield           4.70%        
Senior Mortgage Loans | Mixed-use | CALIFORNIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal 57,100         $ 57,100        
Loans held for investment 56,900         $ 56,900        
Unleveraged effective yield           5.50%        
Senior Mortgage Loans | Multifamily | SOUTH CAROLINA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal 67,000         $ 67,000        
Senior Mortgage Loans | Multifamily | WASHINGTON                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal 23,100         23,100        
Senior Mortgage Loans | Hotel | NEW YORK                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal                   $ 38,600
Senior Mortgage Loans | Industrial | ILLINOIS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal               $ 100,700    
Senior Mortgage Loans | Industrial | FLORIDA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal 25,500         25,500        
Senior Mortgage Loans | Industrial | TEXAS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal 30,900         30,900        
Loans held for investment 25,300         25,300        
Senior Mortgage Loans | Industrial | NEW JERSEY                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal             $ 44,700      
Senior Mortgage Loans | Self Storage | NEW JERSEY                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal             $ 40,500      
Senior Mortgage Loans | Residential | CALIFORNIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal 14,300         14,300        
Loans held for investment 14,300         $ 14,300        
Fixed interest rate           13.00%        
Unleveraged effective yield           0.00%        
Senior Mortgage Loans | Residential Condominium | NEW YORK                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal 54,500         $ 54,500        
Loans held for investment 54,500         $ 54,500        
Unleveraged effective yield           10.80%        
Senior Mortgage Loans | LIBOR Plus 3.61%, Due March 2023 | Office | ILLINOIS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal 150,500         $ 150,500        
Loans held for investment $ 149,900         $ 149,900        
Unleveraged effective yield           5.50%        
Senior Mortgage Loans | LIBOR Plus 3.61%, Due March 2023 | Office | ILLINOIS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.61%         3.61%        
Senior Mortgage Loans | LIBOR Plus 3.65%, Due January 2023 | Office | Diversified                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 113,600         $ 113,600        
Loans held for investment $ 113,400         $ 113,400        
Unleveraged effective yield           5.70%        
Senior Mortgage Loans | LIBOR Plus 3.65%, Due January 2023 | Office | Diversified | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.65%         3.65%        
Senior Mortgage Loans | LIBOR Plus 4.25% Due February 2023 | Mixed-use | FLORIDA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 84,000         $ 84,000        
Loans held for investment $ 84,000         $ 84,000        
Unleveraged effective yield           5.70%        
Senior Mortgage Loans | LIBOR Plus 4.25% Due February 2023 | Mixed-use | FLORIDA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 4.25%         4.25%        
Senior Mortgage Loans | LIBOR Plus 4.55% Due May 2024 | Industrial | ILLINOIS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 77,500         $ 77,500        
Loans held for investment $ 76,900         $ 76,900        
Unleveraged effective yield           5.10%        
Senior Mortgage Loans | LIBOR Plus 4.55% Due May 2024 | Industrial | ILLINOIS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 4.55%         4.55%        
Senior Mortgage Loans | LIBOR Plus 3.50%, Due October 2024 | Office | ARIZONA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 77,400         $ 77,400        
Loans held for investment $ 76,600         $ 76,600        
Unleveraged effective yield           4.00%        
Senior Mortgage Loans | LIBOR Plus 3.50%, Due October 2024 | Office | ARIZONA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.50%         3.50%        
Senior Mortgage Loans | LIBOR Plus 5.00%, Due Feb 2022 | Industrial | NEW YORK                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 77,300         $ 77,300        
Loans held for investment $ 77,300         $ 77,300        
Unleveraged effective yield           7.10%        
Extension option period exercised (in years)         6 months          
Senior Mortgage Loans | LIBOR Plus 5.00%, Due Feb 2022 | Industrial | NEW YORK | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 5.00%         5.00%        
Senior Mortgage Loans | LIBOR Plus 3.65%, Due July 2024 | Mixed-use | NEW YORK                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 75,000         $ 75,000        
Loans held for investment $ 74,400         $ 74,400        
Unleveraged effective yield           4.10%        
Senior Mortgage Loans | LIBOR Plus 3.65%, Due July 2024 | Mixed-use | NEW YORK | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.65%         3.65%        
Senior Mortgage Loans | LIBOR Plus 3.45%, Due May 2022 | Hotel | OREGON / WASHINGTON                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 68,100         $ 68,100        
Loans held for investment 67,600         $ 67,600        
Unleveraged effective yield           7.40%        
Financing receivable, nonaccrual $ 13,100         $ 13,100        
Extension option period exercised (in years)     1 year              
Senior Mortgage Loans | LIBOR Plus 3.45%, Due May 2022 | Hotel | OREGON / WASHINGTON | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.45%         3.45%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due November 2024 | Multifamily and Office | SOUTH CAROLINA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 67,000         $ 67,000        
Loans held for investment $ 66,700         $ 66,700        
Unleveraged effective yield           3.20%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due November 2024 | Multifamily and Office | SOUTH CAROLINA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.90%         2.90%        
Senior Mortgage Loans | LIBOR Plus 5.25%, Due July 2023 | Residential Condominium | FLORIDA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 66,900         $ 66,900        
Loans held for investment $ 66,300         $ 66,300        
Unleveraged effective yield           6.00%        
Senior Mortgage Loans | LIBOR Plus 5.25%, Due July 2023 | Residential Condominium | FLORIDA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 5.25%         5.25%        
Senior Mortgage Loans | LIBOR Plus 3.55%, Due August 2024 | Office | ILLINOIS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 64,700         $ 64,700        
Loans held for investment $ 64,000         $ 64,000        
Unleveraged effective yield           4.20%        
Senior Mortgage Loans | LIBOR Plus 3.55%, Due August 2024 | Office | ILLINOIS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.55%         3.55%        
Senior Mortgage Loans | LIBOR Plus 4.25%, Due March 2022 | Office | NORTH CAROLINA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 63,900         $ 63,900        
Loans held for investment $ 63,900         $ 63,900        
Unleveraged effective yield           6.70%        
Extension option period exercised (in years)       1 year            
Senior Mortgage Loans | LIBOR Plus 4.25%, Due March 2022 | Office | NORTH CAROLINA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 4.25%         4.25%        
Senior Mortgage Loans | LIBOR Plus 3.85%, Due August 2025 | Office | NEW YORK                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 61,600         $ 61,600        
Loans held for investment $ 60,800         $ 60,800        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 3.85%, Due August 2025 | Office | NEW YORK | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.85%         3.85%        
Senior Mortgage Loans | LIBOR Plus 3.75%, Due December 2022 | Office | ILLINOIS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 61,000         $ 61,000        
Loans held for investment $ 60,900         $ 60,900        
Unleveraged effective yield           5.30%        
Extension option period exercised (in years) 1 year                  
Senior Mortgage Loans | LIBOR Plus 3.75%, Due December 2022 | Office | ILLINOIS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.75%         3.75%        
Senior Mortgage Loans | LIBOR Plus 3.60%, Due September 2022 | Hotel | Diversified                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 60,600         $ 60,600        
Loans held for investment $ 60,500         $ 60,500        
Unleveraged effective yield           6.00%        
Extension option period exercised (in years)   1 year                
Senior Mortgage Loans | LIBOR Plus 3.60%, Due September 2022 | Hotel | Diversified | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.60%         3.60%        
Senior Mortgage Loans | LIBOR Plus 3.95%, Due Jun 2022 | Office | ILLINOIS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 57,200         $ 57,200        
Loans held for investment $ 57,200         $ 57,200        
Unleveraged effective yield           6.20%        
Senior Mortgage Loans | LIBOR Plus 3.95%, Due Jun 2022 | Office | ILLINOIS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.95%         3.95%        
Senior Mortgage Loans | LIBOR Plus 2.85%, Due December 2024 | Multifamily | TEXAS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 56,200         $ 56,200        
Loans held for investment $ 55,600         $ 55,600        
Unleveraged effective yield           3.40%        
Senior Mortgage Loans | LIBOR Plus 2.85%, Due December 2024 | Multifamily | TEXAS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.85%         2.85%        
Senior Mortgage Loans | LIBOR Plus 3.80%, Due February 2024 | Self Storage | NEW JERSEY                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 55,500         $ 55,500        
Loans held for investment $ 55,600         $ 55,600        
Unleveraged effective yield           4.10%        
Senior Mortgage Loans | LIBOR Plus 3.80%, Due February 2024 | Self Storage | NEW JERSEY | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.80%         3.80%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due December 2022 | Office | GEORGIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 46,600         $ 46,600        
Loans held for investment $ 46,500         $ 46,500        
Unleveraged effective yield           5.70%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due December 2022 | Office | GEORGIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.05%         3.05%        
Senior Mortgage Loans | LIBOR Plus 4.12%, Due January 2022 | Hotel | CALIFORNIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 40,000         $ 40,000        
Loans held for investment $ 39,800         $ 39,800        
Basis spread on variable rate 4.12%         4.12%        
Unleveraged effective yield           5.80%        
Senior Mortgage Loans | LIBOR Plus 2.75%, Due June 2023 | Multifamily | SOUTH CAROLINA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 37,400         $ 37,400        
Loans held for investment $ 37,200         $ 37,200        
Unleveraged effective yield           3.40%        
Senior Mortgage Loans | LIBOR Plus 2.75%, Due June 2023 | Multifamily | SOUTH CAROLINA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.75%         2.75%        
Senior Mortgage Loans | LIBOR Plus 3.95%, Due July 2022 | Student Housing | CALIFORNIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 36,200         $ 36,200        
Loans held for investment $ 36,200         $ 36,200        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 3.95%, Due July 2022 | Student Housing | CALIFORNIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.95%         3.95%        
Senior Mortgage Loans | LIBOR Plus 4.10%, Due March 2023 | Mixed-use | CALIFORNIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 35,400         $ 35,400        
Loans held for investment $ 35,200         $ 35,200        
Unleveraged effective yield           6.30%        
Senior Mortgage Loans | LIBOR Plus 4.10%, Due March 2023 | Mixed-use | CALIFORNIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 4.10%         4.10%        
Senior Mortgage Loans | LIBOR Plus 6.50%, Due September 2022 | Multifamily | SOUTH CAROLINA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 34,000         $ 34,000        
Loans held for investment $ 33,800         $ 33,800        
Unleveraged effective yield           10.20%        
Senior Mortgage Loans | LIBOR Plus 6.50%, Due September 2022 | Multifamily | SOUTH CAROLINA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 6.50%         6.50%        
Senior Mortgage Loans | LIBOR Plus 3.95%, Due July 2022, Instrument 2 | Hotel | MICHIGAN                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 33,200         $ 33,200        
Loans held for investment $ 33,200         $ 33,200        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 3.95%, Due July 2022, Instrument 2 | Hotel | MICHIGAN | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.95%         3.95%        
Senior Mortgage Loans | LIBOR Plus 4.40%, Due May 2022 | Hotel | ILLINOIS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 32,900         $ 32,900        
Loans held for investment $ 30,700         $ 30,700        
Unleveraged effective yield           0.00%        
Senior Mortgage Loans | LIBOR Plus 4.40%, Due May 2022 | Hotel | ILLINOIS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 4.40%         4.40%        
Senior Mortgage Loans | LIBOR Plus 3.35%, Due November 2022 | Office | CALIFORNIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 32,300         $ 32,300        
Loans held for investment $ 32,200         $ 32,200        
Unleveraged effective yield           6.00%        
Senior Mortgage Loans | LIBOR Plus 3.35%, Due November 2022 | Office | CALIFORNIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.35%         3.35%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2025 | Multifamily | CALIFORNIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 31,700         $ 31,700        
Loans held for investment $ 31,400         $ 31,400        
Unleveraged effective yield           3.30%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2025 | Multifamily | CALIFORNIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.90%         2.90%        
Senior Mortgage Loans | LIBOR Plus 3.15%, Due Feb 2022 | Student Housing | NORTH CAROLINA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 30,000         $ 30,000        
Loans held for investment $ 30,000         $ 30,000        
Unleveraged effective yield           5.90%        
Senior Mortgage Loans | LIBOR Plus 3.15%, Due Feb 2022 | Student Housing | NORTH CAROLINA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.15%         3.15%        
Senior Mortgage Loans | LIBOR Plus 3.00%, Due December 2021 | Multifamily | PENNSYLVANIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 29,400         $ 29,400        
Loans held for investment $ 29,300         $ 29,300        
Unleveraged effective yield           4.50%        
Senior Mortgage Loans | LIBOR Plus 3.00%, Due December 2021 | Multifamily | PENNSYLVANIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.00%         3.00%        
Senior Mortgage Loans | LIBOR Plus 3.80%, Due January 2023 | Office | ILLINOIS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 28,500         $ 28,500        
Loans held for investment $ 28,400         $ 28,400        
Unleveraged effective yield           6.20%        
Senior Mortgage Loans | LIBOR Plus 3.80%, Due January 2023 | Office | ILLINOIS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.80%         3.80%        
Senior Mortgage Loans | LIBOR Plus 3.53%, Due May 2023 | Office | ILLINOIS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 28,500         $ 28,500        
Loans held for investment $ 28,200         $ 28,200        
Unleveraged effective yield           6.80%        
Senior Mortgage Loans | LIBOR Plus 3.53%, Due May 2023 | Office | ILLINOIS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.53%         3.53%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2025, Instrument 2 | Industrial | FLORIDA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 25,500         $ 25,500        
Loans held for investment $ 25,300         $ 25,300        
Unleveraged effective yield           3.20%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2025, Instrument 2 | Industrial | FLORIDA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.90%         2.90%        
Senior Mortgage Loans | LIBOR Plus 4.65%, Due December 2024 | Industrial | TEXAS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 25,300         $ 25,300        
Loans held for investment $ 25,100         $ 25,100        
Unleveraged effective yield           5.10%        
Senior Mortgage Loans | LIBOR Plus 4.65%, Due December 2024 | Industrial | TEXAS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 4.65%         4.65%        
Senior Mortgage Loans | LIBOR Plus 3.45%, Due February 2023 | Student Housing | TEXAS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 24,600         $ 24,600        
Loans held for investment $ 24,400         $ 24,400        
Unleveraged effective yield           5.60%        
Senior Mortgage Loans | LIBOR Plus 3.45%, Due February 2023 | Student Housing | TEXAS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.45%         3.45%        
Senior Mortgage Loans | LIBOR Plus 3.75%, Due May 2024 | Industrial | NEW JERSEY                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 23,200         $ 23,200        
Loans held for investment $ 22,900         $ 22,900        
Unleveraged effective yield           4.70%        
Senior Mortgage Loans | LIBOR Plus 3.75%, Due May 2024 | Industrial | NEW JERSEY | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.75%         3.75%        
Senior Mortgage Loans | LIBOR Plus 2 .90%, Due November 2025 | Multifamily | WASHINGTON                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 23,100         $ 23,100        
Loans held for investment $ 23,000         $ 23,000        
Unleveraged effective yield           3.20%        
Senior Mortgage Loans | LIBOR Plus 2 .90%, Due November 2025 | Multifamily | WASHINGTON | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.90%         2.90%        
Senior Mortgage Loans | LIBOR Plus 3.40%, Due November 2022 | Office | CALIFORNIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 22,900         $ 22,900        
Loans held for investment $ 22,800         $ 22,800        
Unleveraged effective yield           6.00%        
Extension option period exercised (in years)   1 year                
Senior Mortgage Loans | LIBOR Plus 3.40%, Due November 2022 | Office | CALIFORNIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.40%         3.40%        
Senior Mortgage Loans | LIBOR Plus 3.25%, Due August 2022 | Student Housing | FLORIDA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 22,000         $ 22,000        
Loans held for investment $ 22,000         $ 22,000        
Unleveraged effective yield           5.90%        
Senior Mortgage Loans | LIBOR Plus 3.25%, Due August 2022 | Student Housing | FLORIDA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.25%         3.25%        
Senior Mortgage Loans | LIBOR Plus 2.50%, Due October 2024 | Multifamily | TEXAS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 21,900         $ 21,900        
Loans held for investment $ 21,700         $ 21,700        
Unleveraged effective yield           3.00%        
Senior Mortgage Loans | LIBOR Plus 2.50%, Due October 2024 | Multifamily | TEXAS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.50%         2.50%        
Senior Mortgage Loans | LIBOR Plus 6.75%, Due February 2023 | Industrial | COLORADO                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 20,800         $ 20,800        
Loans held for investment $ 20,600         $ 20,600        
Unleveraged effective yield           7.70%        
Senior Mortgage Loans | LIBOR Plus 6.75%, Due February 2023 | Industrial | COLORADO | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 6.75%         6.75%        
Senior Mortgage Loans | LIBOR Plus 3.85%, Due May 2024 | Student Housing | ALABAMA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 19,500         $ 19,500        
Loans held for investment $ 19,300         $ 19,300        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 3.85%, Due May 2024 | Student Housing | ALABAMA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.85%         3.85%        
Senior Mortgage Loans | LIBOR Plus 3.00%, Due March 2023 | Multifamily | WASHINGTON                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 18,700         $ 18,700        
Loans held for investment $ 18,600         $ 18,600        
Unleveraged effective yield           5.10%        
Senior Mortgage Loans | LIBOR Plus 3.00%, Due March 2023 | Multifamily | WASHINGTON | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.00%         3.00%        
Senior Mortgage Loans | LIBOR Plus 3.75%, Due March 2023 | Industrial | CALIFORNIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 16,700         $ 16,700        
Loans held for investment $ 16,600         $ 16,600        
Unleveraged effective yield           6.40%        
Senior Mortgage Loans | LIBOR Plus 3.75%, Due March 2023 | Industrial | CALIFORNIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.75%         3.75%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due October 2024, Instrument 1 | Self Storage | PENNSYLVANIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 12,700         $ 12,700        
Loans held for investment $ 12,600         $ 12,600        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due October 2024, Instrument 1 | Self Storage | PENNSYLVANIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.05%         3.05%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due October 2024, Instrument 2 | Self Storage | MARYLAND                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 12,400         $ 12,400        
Loans held for investment $ 12,300         $ 12,300        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due October 2024, Instrument 2 | Self Storage | MARYLAND | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.05%         3.05%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due October 2024, Instrument 3 | Self Storage | MARYLAND                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 12,000         $ 12,000        
Loans held for investment $ 11,900         $ 11,900        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due October 2024, Instrument 3 | Self Storage | MARYLAND | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.05%         3.05%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2023, Instrument 1 | Self Storage | FLORIDA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 10,800         $ 10,800        
Loans held for investment $ 10,800         $ 10,800        
Unleveraged effective yield           4.40%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2023, Instrument 1 | Self Storage | FLORIDA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.90%         2.90%        
Senior Mortgage Loans | LIBOR Plus 5.25%, Due December 2024 | Industrial | TEXAS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 10,400         $ 10,400        
Loans held for investment $ 10,200         $ 10,200        
Unleveraged effective yield           5.90%        
Senior Mortgage Loans | LIBOR Plus 5.25%, Due December 2024 | Industrial | TEXAS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 5.25%         5.25%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due October 2024, Instrument 4 | Self Storage | WASHINGTON                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 10,200         $ 10,200        
Loans held for investment $ 10,100         $ 10,100        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due October 2024, Instrument 4 | Self Storage | WASHINGTON | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.05%         3.05%        
Senior Mortgage Loans | LIBOR Plus 4.00%, Due November 2022 | Office | NORTH CAROLINA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 9,400         $ 9,400        
Loans held for investment $ 9,400         $ 9,400        
Unleveraged effective yield           6.60%        
Senior Mortgage Loans | LIBOR Plus 4.00%, Due November 2022 | Office | NORTH CAROLINA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 4.00%         4.00%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due October 2024, Instrument 5 | Self Storage | MISSOURI                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 8,800         $ 8,800        
Loans held for investment $ 8,700         $ 8,700        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 3.05%, Due October 2024, Instrument 5 | Self Storage | MISSOURI | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.05%         3.05%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due May 2024, Instrument 1 | Self Storage | ARIZONA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 8,400         $ 8,400        
Loans held for investment $ 8,400         $ 8,400        
Unleveraged effective yield           4.00%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due May 2024, Instrument 1 | Self Storage | ARIZONA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.90%         2.90%        
Senior Mortgage Loans | LIBOR Plus 5.50%, Due September 2024 | Industrial | PENNSYLVANIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 8,000         $ 8,000        
Loans held for investment $ 8,000         $ 8,000        
Unleveraged effective yield           6.10%        
Senior Mortgage Loans | LIBOR Plus 5.50%, Due September 2024 | Industrial | PENNSYLVANIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 5.50%         5.50%        
Senior Mortgage Loans | LIBOR Plus 5.90%, Due November 2024 | Industrial | FLORIDA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 7,800         $ 7,800        
Loans held for investment $ 7,700         $ 7,700        
Unleveraged effective yield           6.60%        
Senior Mortgage Loans | LIBOR Plus 5.90%, Due November 2024 | Industrial | FLORIDA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 5.90%         5.90%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due May 2024, Instrument 2 | Industrial | ARIZONA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 7,400         $ 7,400        
Loans held for investment $ 7,300         $ 7,300        
Unleveraged effective yield           4.10%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due May 2024, Instrument 2 | Industrial | ARIZONA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.90%         2.90%        
Senior Mortgage Loans | LIBOR Plus 5.90%, Due November 2024, Instrument 2 | Industrial | PENNSYLVANIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 7,000         $ 7,000        
Loans held for investment $ 6,900         $ 6,900        
Unleveraged effective yield           6.50%        
Senior Mortgage Loans | LIBOR Plus 5.90%, Due November 2024, Instrument 2 | Industrial | PENNSYLVANIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 5.90%         5.90%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2023, Instrument 2 | Self Storage | FLORIDA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 7,000         $ 7,000        
Loans held for investment $ 6,900         $ 6,900        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2023, Instrument 2 | Self Storage | FLORIDA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.90%         2.90%        
Senior Mortgage Loans | LIBOR Plus 5.50%, Due November 2024 | Industrial | TENNESSEE                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 6,700         $ 6,700        
Loans held for investment $ 6,600         $ 6,600        
Unleveraged effective yield           6.10%        
Senior Mortgage Loans | LIBOR Plus 5.50%, Due November 2024 | Industrial | TENNESSEE | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 5.50%         5.50%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2023, Instrument 3 | Self Storage | FLORIDA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 6,400         $ 6,400        
Loans held for investment $ 6,400         $ 6,400        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2023, Instrument 3 | Self Storage | FLORIDA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.90%         2.90%        
Senior Mortgage Loans | LIBOR Plus 3.00%, Due December 2023, Instrument 1 | Self Storage | MISSOURI                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 6,200         $ 6,200        
Loans held for investment $ 6,200         $ 6,200        
Unleveraged effective yield           4.40%        
Senior Mortgage Loans | LIBOR Plus 3.00%, Due December 2023, Instrument 1 | Self Storage | MISSOURI | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.00%         3.00%        
Senior Mortgage Loans | LIBOR Plus 3.00%, Due December 2023, Instrument 2 | Self Storage | ILLINOIS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 5,600         $ 5,600        
Loans held for investment $ 5,600         $ 5,600        
Unleveraged effective yield           4.30%        
Senior Mortgage Loans | LIBOR Plus 3.00%, Due December 2023, Instrument 2 | Self Storage | ILLINOIS | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 3.00%         3.00%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2023, Instrument 4 | Self Storage | FLORIDA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 4,400         $ 4,400        
Loans held for investment $ 4,400         $ 4,400        
Unleveraged effective yield           4.20%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due December 2023, Instrument 4 | Self Storage | FLORIDA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.90%         2.90%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due April 2024 | Self Storage | COLORADO                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 3,200         $ 3,200        
Loans held for investment $ 3,200         $ 3,200        
Unleveraged effective yield           3.80%        
Senior Mortgage Loans | LIBOR Plus 2.90%, Due April 2024 | Self Storage | COLORADO | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 2.90%         2.90%        
Senior Mortgage Loans | LIBOR Plus 6..25%, Due September 2024 | Industrial | COLORADO                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 2,900         $ 2,900        
Loans held for investment $ 2,900         $ 2,900        
Unleveraged effective yield           6.90%        
Senior Mortgage Loans | LIBOR Plus 6..25%, Due September 2024 | Industrial | COLORADO | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 6.25%         6.25%        
Senior Mortgage Loans | LIBOR Plus 5.90%, Due October 2024 | Industrial | ARIZONA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 2,700         $ 2,700        
Loans held for investment $ 2,600         $ 2,600        
Unleveraged effective yield           6.50%        
Senior Mortgage Loans | LIBOR Plus 5.90%, Due October 2024 | Industrial | ARIZONA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 5.90%         5.90%        
Senior Mortgage Loans | LIBOR Plus 5.25%, Due September 2024 | Industrial | GEORGIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 1,300         $ 1,300        
Loans held for investment $ 1,300         $ 1,300        
Unleveraged effective yield           5.90%        
Senior Mortgage Loans | LIBOR Plus 5.25%, Due September 2024 | Industrial | GEORGIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 5.25%         5.25%        
Senior Mortgage Loans | LIBOR Plus 3.80% Due January 2024 | Mixed-use | CALIFORNIA | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 380.00%         380.00%        
Senior Mortgage Loans | Mezzanine, 10% annual fixed rate loan | Mixed-use | CALIFORNIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 12,100         $ 12,100        
Fixed interest rate           12.00%        
Senior Mortgage Loans | LIBOR Plus 6.00% | Residential Condominium | NEW YORK                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Loans held for investment $ 35,900         $ 35,900        
Basis spread on variable rate 600.00%         600.00%        
Senior Mortgage Loans | LIBOR Plus 3.75%, Note A | TEXAS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 35,300         $ 35,300        
Basis spread on variable rate 375.00%         375.00%        
Senior Mortgage Loans | LIBOR Plus 10.00%, Note B | TEXAS                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 400         $ 400        
Basis spread on variable rate 10.00%         10.00%        
Senior Mortgage Loans | LIBOR Plus 4.00%, Due April 2022 | Mixed-use | CALIFORNIA                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal $ 45,000         $ 45,000        
Subordinated debt and preferred equity investments | Office | NEW JERSEY                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Outstanding principal 17,400         17,400        
Loans held for investment 16,700         $ 16,700        
Fixed interest rate           12.00%        
Unleveraged effective yield           13.70%        
Subordinated debt and preferred equity investments | Residential Condominium | NEW YORK                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Fixed interest rate           20.00%        
Notes payable, related parties 2,600         $ 2,600        
Subordinated debt and preferred equity investments | LIBOR Plus 14.00%, Due May 2021 | Residential Condominium | NEW YORK                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Loans held for investment $ 15,900         $ 15,900        
Subordinated debt and preferred equity investments | LIBOR Plus 14.00%, Due May 2021 | Residential Condominium | NEW YORK | LIBOR                    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]                    
Basis spread on variable rate 14.00%         14.00%        
v3.22.0.1
LOANS HELD FOR INVESTMENT - Portfolio Activity (Details)
$ in Thousands
 1 Months Ended 12 Months Ended
Aug. 31, 2020
USD ($)
loan
Jul. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
loan
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Change in the activity of loan portfolio          
Balance at the beginning of the period     $ 1,815,219 $ 1,682,498  
Initial funding     1,166,100 430,562  
Origination fees and discounts, net of costs     (12,192) (5,778)  
Additional funding     93,973 107,767  
Amortizing payments     (2,586) (2,728)  
Loan payoffs     (654,564) (304,028)  
Loans sold to third parties       (100,504)  
Origination fee accretion     8,433 7,430 $ 7,013
Balance at the end of the period     2,414,383 1,815,219 1,682,498
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Realized losses on loans sold     0 4,008 0
Mortgage Loans On Real Estate Total Commitment Amount Including Noncontrolling Interest     $ 2,414,383 $ 1,815,219 $ 1,682,498
Senior Mortgage Loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Number of loans repaid or sold | loan     3    
Realized losses on loans sold     $ 4,000    
Hotel | Senior Mortgage Loans | MINNESOTA          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Senior mortgage loans with outstanding principal sold   $ 31,500      
Multifamily | Senior Mortgage Loans | ILLINOIS and TEXAS          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Number of loans repaid or sold | loan 2        
Multifamily | Senior Mortgage Loans | ILLINOIS          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Senior mortgage loans with outstanding principal sold $ 39,900        
Multifamily | Senior Mortgage Loans | TEXAS          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Senior mortgage loans with outstanding principal sold $ 29,600        
v3.22.0.1
CURRENT EXPECTED CREDIT LOSSES - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]      
Financing receivable, allowance for credit loss, excluding accrued interest $ 25,200    
Allowance for credit loss, basis points 9500.00%    
Commitments $ 2,662,853 $ 2,013,993  
Other Assets      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Interest receivable 17,100 11,200  
Loans Held for Investment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Financing receivable, allowance for credit loss, excluding accrued interest 23,939 23,604 $ 0
Unfunded Loan Commitment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Financing receivable, allowance for credit loss, excluding accrued interest $ 1,307 $ 1,632 $ 0
v3.22.0.1
CURRENT EXPECTED CREDIT LOSSES - Allowance for Credit Loss (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Provision for current expected credit losses $ 10 $ 20,185 $ 0
Balance at the end of the period 25,200    
Loans Held for Investment      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Balance at the beginning of the period 23,604 0  
Provision for current expected credit losses 335 19,164  
Write-offs 0 0  
Recoveries 0 0  
Balance at the end of the period 23,939 23,604 0
Loans Held for Investment | Impact of adoption of CECL      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Balance at the beginning of the period   4,440  
Balance at the end of the period     4,440
Unfunded Loan Commitment      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Balance at the beginning of the period 1,632 0  
Provision for current expected credit losses (325) 1,021  
Write-offs 0 0  
Recoveries 0 0  
Balance at the end of the period $ 1,307 1,632 0
Unfunded Loan Commitment | Impact of adoption of CECL      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Balance at the beginning of the period   $ 611  
Balance at the end of the period     $ 611
v3.22.0.1
CURRENT EXPECTED CREDIT LOSSES - Internal Credit Risk Rating (Details) - Loans Held for Investment
$ in Thousands
Dec. 31, 2021
USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]  
2021 $ 1,077,187
2020 394,389
2019 423,855
2018 307,720
2017 161,328
Prior 49,904
Total 2,414,383
1 - Very Low Risk  
Financing Receivable, Credit Quality Indicator [Line Items]  
2021 28,462
2020 0
2019 0
2018 9,383
2017 0
Prior 0
Total 37,845
2 - Low Risk  
Financing Receivable, Credit Quality Indicator [Line Items]  
2021 403,052
2020 0
2019 147,815
2018 0
2017 0
Prior 0
Total 550,867
3 - Medium Risk  
Financing Receivable, Credit Quality Indicator [Line Items]  
2021 609,751
2020 394,389
2019 273,391
2018 180,213
2017 161,328
Prior 49,904
Total 1,668,976
4 - High Risk/Potential for Loss: Asset performance is trailing underwritten expectations. Loan at risk of impairment without material improvement to performance  
Financing Receivable, Credit Quality Indicator [Line Items]  
2021 35,922
2020 0
2019 2,649
2018 118,124
2017 0
Prior 0
Total 156,695
5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss  
Financing Receivable, Credit Quality Indicator [Line Items]  
2021 0
2020 0
2019 0
2018 0
2017 0
Prior 0
Total $ 0
v3.22.0.1
REAL ESTATE OWNED - Narrative (Details) - USD ($)
 12 Months Ended
Nov. 08, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Mar. 08, 2019
Mar. 07, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]            
Outstanding principal   $ 2,429,112,000 $ 1,826,241,000      
Real estate owned held for sale, net   36,602,000 37,283,000      
Depreciation of real estate owned   825,000 892,000 $ 667,000    
Hotel            
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]            
Proceeds from sale of hotel property $ 40,000,000          
NEW YORK | Hotel            
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]            
Real estate owned held for sale, net   36,602,000 37,283,000      
Repossessed hotel property   38,987,000 38,843,000      
Impairment charges   0        
Depreciation of real estate owned   $ 825,000 $ 892,000      
Senior Mortgage Loans | NEW YORK | Hotel            
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]            
Outstanding principal           $ 38,600,000
Debt derecognized         $ 38,600,000  
Real estate owned held for sale, net         36,900,000  
Other repossessed hotel assets         1,700,000  
Repossessed hotel property         $ 38,600,000  
v3.22.0.1
REAL ESTATE OWNED - Schedule of Real Estate Owned, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Real estate owned held for sale, net $ 36,602 $ 37,283
NEW YORK | Hotel    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Repossessed hotel property 38,987 38,843
Less: Accumulated depreciation (2,385) (1,560)
Real estate owned held for sale, net 36,602 37,283
Land | NEW YORK | Hotel    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Repossessed hotel property 10,200 10,200
Buildings and improvements | NEW YORK | Hotel    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Repossessed hotel property 24,281 24,281
Furniture, fixtures and equipment | NEW YORK | Hotel    
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Repossessed hotel property $ 4,506 $ 4,362
v3.22.0.1
DEBT - Schedule of outstanding balances and total commitments under Financing Agreements (Details) - USD ($)
Dec. 31, 2021
Dec. 01, 2021
Nov. 30, 2021
Nov. 01, 2021
Oct. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]            
Outstanding balance $ 1,041,157,000         $ 928,674,000
Total Commitment 1,481,755,000         1,249,155,000
Secured term loan            
Debt Instrument [Line Items]            
Outstanding balance 150,000,000         110,000,000
Total Commitment 150,000,000   $ 150,000,000     110,000,000
Wells Fargo Facility | Revolving credit facility, optional commitment amount            
Debt Instrument [Line Items]            
Total Commitment 500,000,000          
Wells Fargo Facility | Secured revolving funding facility            
Debt Instrument [Line Items]            
Total Commitment 450,000,000 $ 450,000,000 $ 350,000,000      
Citibank Facility | Secured revolving funding facility            
Debt Instrument [Line Items]            
Total Commitment 325,000,000          
CNB Facility | CNB Facility            
Debt Instrument [Line Items]            
Total Commitment 75,000,000     $ 75,000,000 $ 50,000,000  
Secured funding facility            
Debt Instrument [Line Items]            
Outstanding balance 840,047,000         755,552,000
Total Commitment 1,280,000,000         1,055,000,000
Secured funding facility | Wells Fargo Facility            
Debt Instrument [Line Items]            
Outstanding balance 399,528,000         336,001,000
Total Commitment 450,000,000         350,000,000
Secured funding facility | Citibank Facility            
Debt Instrument [Line Items]            
Outstanding balance 192,970,000         117,506,000
Total Commitment 325,000,000         325,000,000
Secured funding facility | CNB Facility            
Debt Instrument [Line Items]            
Outstanding balance 0         50,000,000
Total Commitment 75,000,000         50,000,000
Secured funding facility | MetLife Facility            
Debt Instrument [Line Items]            
Outstanding balance 20,648,000         104,124,000
Total Commitment 180,000,000         180,000,000
Secured funding facility | Morgan Stanley Facility            
Debt Instrument [Line Items]            
Outstanding balance 226,901,000         147,921,000
Total Commitment 250,000,000         150,000,000
Notes Payable            
Debt Instrument [Line Items]            
Outstanding balance 51,110,000         63,122,000
Total Commitment $ 51,755,000         $ 84,155,000
v3.22.0.1
DEBT - Disclosures (Details)
 1 Months Ended 3 Months Ended 6 Months Ended 10 Months Ended 12 Months Ended 18 Months Ended
Dec. 14, 2020
Nov. 30, 2019
USD ($)
extension
Nov. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Jun. 30, 2019
USD ($)
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Nov. 12, 2025
Oct. 31, 2021
USD ($)
Nov. 12, 2026
Dec. 31, 2021
USD ($)
extension
loan
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Nov. 12, 2026
Dec. 01, 2021
USD ($)
Nov. 01, 2021
USD ($)
Jun. 30, 2021
USD ($)
Jun. 01, 2021
USD ($)
May 31, 2021
USD ($)
Funding agreements                                          
Line of credit facility, maximum borrowing capacity         $ 1,249,155,000               $ 1,481,755,000 $ 1,249,155,000              
Number of non-recourse notes | loan                         2                
Outstanding balance         928,674,000               $ 1,041,157,000 928,674,000              
Maximum                                          
Funding agreements                                          
Extension period of maturity date                         12 months                
Notes Payable                                          
Funding agreements                                          
Number of extension periods available for maturity date | extension   2                                      
Extension period of maturity date   12 months                                      
Interest rate margin (as a percent)                         3.75%                
Outstanding balance   $ 23,500,000                     $ 22,800,000                
Secured term loan                                          
Funding agreements                                          
Line of credit facility, maximum borrowing capacity     $ 150,000,000   $ 110,000,000               150,000,000 110,000,000              
Extension period of maturity date         12 months                                
Outstanding balance         $ 110,000,000               150,000,000 $ 110,000,000              
Aggregate principal amount     $ 150,000,000                   $ 150,000,000                
Repayments of debt       $ 50,000,000                                  
Debt discount on initial draw down (as a percent)                         5.20% 6.40% 8.00%            
Secured term loan | Forecast                                          
Funding agreements                                          
Interest rate during period                   4.50%                      
Interest rate, increase (decrease)                       0.125%                  
Interest rate, quarterly increase                               0.25%          
Secured term loan | LIBOR                                          
Funding agreements                                          
Interest rate margin (as a percent)     0.50%               5.00%                    
Secured term loan | LIBOR | Forecast                                          
Funding agreements                                          
Interest rate, increase (decrease)             0.75% 0.375% 0.125%                        
Secured term loan | Minimum                                          
Funding agreements                                          
Covenant percentage of tangible net worth at specified date used for computing tangible net worth to be maintained                         80.00%                
Covenant ratio of EBITDA to fixed charges                         1.10                
Covenant percentage of net proceeds raised in future equity issuances, used for computing tangible net worth to be maintained                         80.00%                
Asset coverage ratio                         115.00%                
Unencumbered asset ratio                         125.00%                
Covenant percentage of tangible net worth required to be maintained                         65.00%                
Secured term loan | Maximum                                          
Funding agreements                                          
Covenant ratio of debt to tangible net worth                         4.50                
Notes Payable, Due June 10, 2024                                          
Funding agreements                                          
Interest rate margin (as a percent)                         2.50%                
Wells Fargo Facility | Secured revolving funding facility                                          
Funding agreements                                          
Line of credit facility, maximum borrowing capacity     $ 350,000,000                   $ 450,000,000       $ 450,000,000        
Non-utilization fee                         $ 0 $ 19,000 $ 618,000            
Facility used on average (at least) (as a percent)                           75.00%              
Wells Fargo Facility | Secured revolving funding facility | Minimum                                          
Funding agreements                                          
Covenant percentage of net proceeds raised in future equity issuances, used for computing tangible net worth to be maintained                         80.00%                
Wells Fargo Facility | Secured revolving funding facility | Minimum | 30 day LIBOR                                          
Funding agreements                                          
Interest rate margin (as a percent) 1.50%                                        
Wells Fargo Facility | Secured revolving funding facility | Maximum                                          
Funding agreements                                          
Extension period of maturity date                         12 months                
Covenant ratio of debt to tangible net worth                         4.00                
Covenant ratio of recourse debt to tangible net worth                         3,000.00                
Covenant ratio of EBITDA to fixed charges                         1.25                
Covenant specified amount for computing tangible net worth to be maintained                         $ 135,500,000                
Wells Fargo Facility | Secured revolving funding facility | Maximum | 30 day LIBOR                                          
Funding agreements                                          
Interest rate margin (as a percent) 2.75%                                        
Wells Fargo Facility | Revolving credit facility, optional commitment amount                                          
Funding agreements                                          
Line of credit facility, maximum borrowing capacity                         $ 500,000,000                
Number of extension periods available for maturity date | extension                         3,000,000                
Extension period of maturity date                         12 months                
Wells Fargo Facility | Revolving Credit Facility - Optional Funding Period                                          
Funding agreements                                          
Number of extension periods available for maturity date | extension                         1                
Extension period of maturity date                         12 months                
Citibank Facility | Secured revolving funding facility                                          
Funding agreements                                          
Line of credit facility, maximum borrowing capacity                         $ 325,000,000                
Number of extension periods available for maturity date | extension                         2                
Extension period of maturity date                         12 months                
Non-utilization fee on average available balance (basis points)                         0.25% 0.25%              
Non-utilization fee                         $ 598,000 $ 516,000 388,000            
Facility used on average (at least) (as a percent)                         75.00%                
Covenant liquidity to be maintained as percentage of recourse indebtedness                         5.00%                
Citibank Facility | Secured revolving funding facility | Minimum                                          
Funding agreements                                          
Covenant percentage of tangible net worth at specified date used for computing tangible net worth to be maintained                         80.00%                
Covenant percentage of net proceeds raised in future equity issuances, used for computing tangible net worth to be maintained                         80.00%                
Covenant amount of liquidity to be maintained                         $ 5,000,000                
Citibank Facility | Secured revolving funding facility | Minimum | 30 day LIBOR                                          
Funding agreements                                          
Interest rate margin (as a percent)                         1.50%                
Citibank Facility | Secured revolving funding facility | Maximum                                          
Funding agreements                                          
Covenant ratio of debt to tangible net worth                         4.00                
Covenant ratio of recourse debt to tangible net worth                         3.00                
Covenant ratio of EBITDA to fixed charges                         1.25                
Covenant amount of liquidity to be maintained                         $ 10,000,000                
Citibank Facility | Secured revolving funding facility | Maximum | 30 day LIBOR                                          
Funding agreements                                          
Interest rate margin (as a percent)                         2.25%                
CNB Facility | CNB Facility                                          
Funding agreements                                          
Line of credit facility, maximum borrowing capacity                     $ 50,000,000   $ 75,000,000         $ 75,000,000      
Extension period of maturity date       12 months                                  
Non-utilization fee                         $ 146,000 38,000 136,000            
CNB Facility | CNB Facility | LIBOR                                          
Funding agreements                                          
Interest rate margin (as a percent)                         2.65%                
CNB Facility | CNB Facility | One-month LIBOR                                          
Funding agreements                                          
Interest rate margin (as a percent)                         1.00%                
CNB Facility | CNB Facility | Federal funds rate                                          
Funding agreements                                          
Interest rate margin (as a percent)                         0.50%                
Non-utilization fee on average available balance (basis points)                         0.375%                
Facility used on average (at least) (as a percent)                         75.00%                
CNB Facility | CNB Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate                                          
Funding agreements                                          
Interest rate margin (as a percent)                         1.00%                
CNB Facility | CNB Facility | Minimum                                          
Funding agreements                                          
Covenant percentage of tangible net worth at specified date used for computing tangible net worth to be maintained                         80.00%                
Covenant percentage of net proceeds raised in future equity issuances, used for computing tangible net worth to be maintained                         80.00%                
CNB Facility | CNB Facility | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate                                          
Funding agreements                                          
Interest rate margin (as a percent)                         0.35%                
CNB Facility | CNB Facility | Maximum                                          
Funding agreements                                          
Covenant ratio of debt to tangible net worth                         4.50                
Covenant ratio of EBITDA to fixed charges                         1.25                
CNB Facility | CNB Facility | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate                                          
Funding agreements                                          
Interest rate margin (as a percent)                         2.65%                
MetLife Facility | Secured revolving funding facility                                          
Funding agreements                                          
Non-utilization fee on average available balance (basis points)                         0.25%                
Non-utilization threshold percentage (less than) (as a percent)                         65.00%                
MetLife Facility | CNB Facility                                          
Funding agreements                                          
Non-utilization fee                         $ 162,000 $ 7,000 $ 5,000            
MetLife Facility | Revolving master repurchase facility                                          
Funding agreements                                          
Line of credit facility, maximum borrowing capacity                         $ 180,000,000                
Number of extension periods available for maturity date | extension                         2                
Extension period of maturity date                         12 months                
MetLife Facility | Revolving master repurchase facility | 30 day LIBOR                                          
Funding agreements                                          
Interest rate margin (as a percent)                         2.50%                
MetLife Facility | Revolving master repurchase facility | Minimum                                          
Funding agreements                                          
Covenant percentage of tangible net worth at specified date used for computing tangible net worth to be maintained                         80.00%                
MetLife Facility | Revolving master repurchase facility | Maximum                                          
Funding agreements                                          
Covenant ratio of debt to tangible net worth                         4.00                
Covenant ratio of recourse debt to tangible net worth                         3.00                
Covenant ratio of EBITDA to fixed charges                         1.25                
Notes Payable                                          
Funding agreements                                          
Maximum amount outstanding during period                         $ 30,000,000                
Morgan Stanley Facility | Secured revolving funding facility                                          
Funding agreements                                          
Covenant liquidity to be maintained as percentage of recourse indebtedness                         5.00%                
Morgan Stanley Facility | Secured revolving funding facility | Minimum                                          
Funding agreements                                          
Covenant amount of liquidity to be maintained                         $ 5,000,000                
Morgan Stanley Facility | Secured revolving funding facility | Maximum                                          
Funding agreements                                          
Covenant ratio of debt to tangible net worth                         4.00                
Covenant ratio of recourse debt to tangible net worth                         3.00                
Covenant ratio of EBITDA to fixed charges                         1.25                
Covenant amount of liquidity to be maintained                         $ 10,000,000                
Morgan Stanley Facility | Revolving master repurchase facility                                          
Funding agreements                                          
Line of credit facility, maximum borrowing capacity                         $ 250,000,000           $ 250,000,000   $ 150,000,000
Line of credit facility, accordion feature, increase limit                                         $ 100,000,000
Number of extension periods available for maturity date | extension                         2                
Extension period of maturity date                         12 months                
Line of credit facility, accordion feature, higher borrowing capacity option                                       $ 250,000,000  
Morgan Stanley Facility | Revolving master repurchase facility | One-month LIBOR                                          
Funding agreements                                          
Interest rate margin (as a percent)                         2.25%                
Morgan Stanley Facility | Revolving master repurchase facility | Minimum                                          
Funding agreements                                          
Covenant percentage of tangible net worth at specified date used for computing tangible net worth to be maintained                         80.00%                
Morgan Stanley Facility | Revolving master repurchase facility | Minimum | One-month LIBOR                                          
Funding agreements                                          
Interest rate margin (as a percent)                         1.75%                
NEW YORK | Notes Payable, Due June 10, 2024                                          
Funding agreements                                          
Interest rate margin (as a percent)                         3.00%                
NEW YORK | Notes Payable | Notes Payable                                          
Funding agreements                                          
Interest expense from real estate owned                         $ 28,300,000                
NEW YORK | Notes Payable | Notes Payable, Due June 10, 2024                                          
Funding agreements                                          
Number of extension periods available for maturity date | extension                         1                
Extension period of maturity date                         6 months                
Interest expense from real estate owned           $ 28,300,000                              
SOUTH CAROLINA | Notes Payable                                          
Funding agreements                                          
Outstanding balance   $ 34,600,000                                      
v3.22.0.1
DEBT - Schedule of Maturity (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]  
2022 $ 635,981
2023 226,901
2024 28,275
2025 0
2026 150,000
Thereafter 0
Long-term debt 1,041,157
Wells Fargo Facility  
Debt Instrument [Line Items]  
2022 399,528
2023 0
2024 0
2025 0
2026 0
Thereafter 0
Long-term debt 399,528
Citibank Facility  
Debt Instrument [Line Items]  
2022 192,970
2023 0
2024 0
2025 0
2026 0
Thereafter 0
Long-term debt 192,970
CNB Facility  
Debt Instrument [Line Items]  
2022 0
2023 0
2024 0
2025 0
2026 0
Thereafter 0
Long-term debt 0
MetLife Facility  
Debt Instrument [Line Items]  
2022 20,648
2023 0
2024 0
2025 0
2026 0
Thereafter 0
Long-term debt 20,648
Morgan Stanley Facility  
Debt Instrument [Line Items]  
2022 0
2023 226,901
2024 0
2025 0
2026 0
Thereafter 0
Long-term debt 226,901
Notes Payable  
Debt Instrument [Line Items]  
2022 22,835
2023 0
2024 28,275
2025 0
2026 0
Thereafter 0
Long-term debt 51,110
Secured term loan  
Debt Instrument [Line Items]  
2022 0
2023 0
2024 0
2025 0
2026 150,000
Thereafter 0
Long-term debt $ 150,000
v3.22.0.1
SECURED BORROWINGS (Details) - USD ($)
 1 Months Ended 12 Months Ended
Nov. 30, 2019
Jun. 30, 2020
Apr. 30, 2019
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]          
Outstanding balance       $ 1,041,157,000 $ 928,674,000
Notes Payable          
Debt Instrument [Line Items]          
Outstanding balance $ 23,500,000     $ 22,800,000  
Extension period of maturity date 12 months        
Interest rate margin (as a percent)       3.75%  
NORTH CAROLINA | Senior Mortgage Loans          
Debt Instrument [Line Items]          
Extension period of maturity date     12 months    
NORTH CAROLINA | Notes Payable          
Debt Instrument [Line Items]          
Outstanding balance     $ 24,400,000    
Aggregate principal amount     30,500,000    
Multifamily | NORTH CAROLINA | Notes Payable          
Debt Instrument [Line Items]          
Outstanding balance     $ 6,100,000    
Multifamily | FLORIDA          
Debt Instrument [Line Items]          
Outstanding balance   $ 91,800,000      
Multifamily | FLORIDA | Notes Payable          
Debt Instrument [Line Items]          
Interest rate margin (as a percent)   10.50%      
Multifamily | FLORIDA | Participating Mortgages          
Debt Instrument [Line Items]          
Outstanding balance   $ 66,900,000      
Interest rate margin (as a percent)   2.94%      
Multifamily | FLORIDA | Senior Mortgage Loan Purchased          
Debt Instrument [Line Items]          
Outstanding balance   $ 46,700,000   $ 46,700,000  
Multifamily | FLORIDA | Senior Mortgage Loan Purchased | Subordinated Participation          
Debt Instrument [Line Items]          
Interest rate margin (as a percent)   10.50%      
Multifamily | FLORIDA | Senior Mortgage Loan Purchased | Subordinated participation notes, one-month LIBOR Plus 10.50%          
Debt Instrument [Line Items]          
Outstanding balance   $ 12,600,000      
Multifamily | FLORIDA | Senior Mortgage Loan Purchased | Notes Payable          
Debt Instrument [Line Items]          
Outstanding balance   24,900,000      
Multifamily | FLORIDA | Senior Mortgage Loan Purchased | Participating Mortgages          
Debt Instrument [Line Items]          
Outstanding balance   $ 34,100,000      
Interest rate margin (as a percent)   2.94%      
Office | NORTH CAROLINA | Senior Mortgage Loan, Due May 5, 2023          
Debt Instrument [Line Items]          
Outstanding balance       $ 22,700,000  
Interest rate margin (as a percent)     2.50%    
v3.22.0.1
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Interest Rate Derivatives (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
derivative
Derivative [Line Items]  
Floor rate (percent) 0.0000
LIBOR | Designated as Hedging Instrument | Interest Rate Swap  
Derivative [Line Items]  
Number of Instruments | derivative 1
Notional Amount | $ $ 700,000
Interest rate swaps, Fixed Rate (percent) 0.2075%
Weighted Average Maturity (Years) 1 year
LIBOR | Designated as Hedging Instrument | Interest Rate Cap  
Derivative [Line Items]  
Number of Instruments | derivative 1
Notional Amount | $ $ 220,000
Interest rate caps, Fixed Rate (percent) 0.50%
Weighted Average Maturity (Years) 1 year
v3.22.0.1
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Fair Value of Derivative Instruments (Details) - Designated as Hedging Instrument - Interest rate derivatives - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Other Assets    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivatives in an Asset Position $ 2,979 $ 0
Other Liabilities    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivatives in an Liability Position $ 0 $ 0
v3.22.0.1
COMMITMENTS AND CONTINGENCIES - Commitments to Fund (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]    
Total commitments $ 2,662,853 $ 2,013,993
Less: funded commitments (2,429,112) (1,826,241)
Total unfunded commitments $ 233,741 $ 187,752
v3.22.0.1
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Jun. 22, 2021
Jun. 17, 2021
Mar. 18, 2021
Mar. 15, 2021
Nov. 22, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Jun. 30, 2018
Class of Stock [Line Items]                    
Common stock, par value (in dollars per share) $ 0.01           $ 0.01 $ 0.01    
Sale of stock, share price (in dollars per share) $ 15.68           $ 15.68      
Cost not yet recognized, amount $ 6,000,000           $ 6,000,000 $ 3,700,000 $ 3,100,000  
Period for recognition             2 years 3 months 18 days      
Restricted stock | Amended and Restated 2012 Equity Incentive Plan                    
Class of Stock [Line Items]                    
Shares available for grant (in shares)                   1,390,000
Common Stock                    
Class of Stock [Line Items]                    
Common stock, par value (in dollars per share)     $ 0.01   $ 0.01 $ 0.01        
Sale of stock, consideration received on transaction $ 2,100,000 $ 101,600,000   $ 100,700,000            
Sale of stock, shares issued in transaction (in shares) 137,237   6,500,000   7,000,000          
Maximum | Restricted Stock and Restricted Stock Units                    
Class of Stock [Line Items]                    
Award vesting period             4 years      
Maximum | Common Stock                    
Class of Stock [Line Items]                    
Sale of stock, consideration received on transaction           $ 100,000,000        
Minimum | Restricted Stock and Restricted Stock Units                    
Class of Stock [Line Items]                    
Award vesting period             1 year      
v3.22.0.1
STOCKHOLDERS' EQUITY - Disclosures (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restricted stock activity      
Balance at the beginning of the period (in shares) 358,682    
Granted (in shares) 320,775    
Vested (in shares) (113,651)    
Forfeited (in shares) (26,632)    
Balance at the end of the period (in shares) 539,174 358,682  
Future Anticipated Vesting Schedule      
2022 (in shares) 121,702    
2023 (in shares) 177,176    
2024 (in shares) 147,827    
2025 (in shares) 92,469    
2026 (in shares) 0    
Total (in shares) 539,174    
Restricted stock      
Share-based Payment Arrangement, Noncash Expense [Abstract]      
Compensation expense     $ 1,880,000
Total fair value of shares vested     1,312,000
Weighted average grant date fair value     2,829,000
Restricted stock | Restricted Stock Grants—Directors      
Restricted stock activity      
Balance at the beginning of the period (in shares) 22,324    
Granted (in shares) 28,280    
Vested (in shares) (33,964)    
Forfeited (in shares) 0    
Balance at the end of the period (in shares) 16,640 22,324  
Future Anticipated Vesting Schedule      
2022 (in shares) 12,887    
2023 (in shares) 1,668    
2024 (in shares) 1,668    
2025 (in shares) 417    
2026 (in shares) 0    
Total (in shares) 16,640    
Share-based Payment Arrangement, Noncash Expense [Abstract]      
Compensation expense     343,000
Total fair value of shares vested     373,000
Weighted average grant date fair value     302,000
Restricted stock | Officers and Employees of the Manager      
Restricted stock activity      
Balance at the beginning of the period (in shares) 68,851    
Granted (in shares) 0    
Vested (in shares) (41,511)    
Forfeited (in shares) (1,967)    
Balance at the end of the period (in shares) 25,373 68,851  
Future Anticipated Vesting Schedule      
2022 (in shares) 25,373    
2023 (in shares) 0    
2024 (in shares) 0    
2025 (in shares) 0    
2026 (in shares) 0    
Total (in shares) 25,373    
Share-based Payment Arrangement, Noncash Expense [Abstract]      
Compensation expense     1,537,000
Total fair value of shares vested     939,000
Weighted average grant date fair value     $ 2,527,000
Restricted Stock Units (RSUs) | Officers and Employees of the Manager      
Restricted stock activity      
Balance at the beginning of the period (in shares) 267,507    
Granted (in shares) 292,495    
Vested (in shares) (38,176)    
Forfeited (in shares) (24,665)    
Balance at the end of the period (in shares) 497,161 267,507  
Future Anticipated Vesting Schedule      
2022 (in shares) 83,442    
2023 (in shares) 175,508    
2024 (in shares) 146,159    
2025 (in shares) 92,052    
2026 (in shares) 0    
Total (in shares) 497,161    
Restricted Stock and Restricted Stock Units      
Share-based Payment Arrangement, Noncash Expense [Abstract]      
Compensation expense $ 1,940,000 $ 1,339,000  
Total fair value of shares vested 1,469,000 1,164,000  
Weighted average grant date fair value 4,658,000 3,190,000  
Restricted Stock and Restricted Stock Units | Restricted Stock Grants—Directors      
Share-based Payment Arrangement, Noncash Expense [Abstract]      
Compensation expense 329,000 319,000  
Total fair value of shares vested 460,000 315,000  
Weighted average grant date fair value 403,000 292,000  
Restricted Stock and Restricted Stock Units | Officers and Employees of the Manager      
Share-based Payment Arrangement, Noncash Expense [Abstract]      
Compensation expense 1,611,000 1,020,000  
Total fair value of shares vested 1,009,000 849,000  
Weighted average grant date fair value $ 4,255,000 $ 2,898,000  
v3.22.0.1
EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Earnings Per Share [Abstract]      
Net income attributable to common stockholders $ 60,460 $ 21,840 $ 36,991
Divided by:      
Basic weighted average shares of common stock outstanding (in shares) 42,399,613 32,977,462 28,609,282
Weighted average non-vested restricted stock and RSUs (in shares) 281,892 219,046 237,359
Diluted weighted average shares of common stock outstanding (in shares) 42,681,505 33,196,508 28,846,641
Basic earnings (loss) per common share (in dollars per share) $ 1.43 $ 0.66 $ 1.29
Diluted earnings (loss) per common share (in dollars per share) $ 1.42 $ 0.66 $ 1.28
v3.22.0.1
INCOME TAX - Schedule of Components of Income Tax (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Components of the company's income tax provision      
Total income tax expense, including excise tax $ 722 $ 352 $ 515
Excise tax rate 4.00%    
ACRE Capital Sale      
Components of the company's income tax provision      
Current $ 450 82 114
Deferred 0 (99) 99
Excise tax 272 369 302
Total income tax expense, including excise tax $ 722 $ 352 $ 515
v3.22.0.1
FAIR VALUE - Derivative Assets and Liabilities, Recurring (Details) - Fair Value, Recurring - Interest rate derivatives
$ in Thousands
Dec. 31, 2021
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Financial assets: $ 2,979
Financial liabilities: 0
Level 1  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Financial assets: 0
Financial liabilities: 0
Level 2  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Financial assets: 2,979
Financial liabilities: 0
Level 3  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Financial assets: 0
Financial liabilities: $ 0
v3.22.0.1
FAIR VALUE - Carrying Value and Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Financial assets:    
Loans held for investment $ 2,414,383 $ 1,815,219
Financial liabilities:    
Collateralized loan obligation securitization debt (consolidated VIEs) 861,188 443,871
Carrying Value    
Financial assets:    
Loans held for investment 2,414,383 1,815,219
Financial liabilities:    
Secured funding agreements 840,047 755,552
Notes payable 50,358 61,837
Secured term loan 149,016 110,000
Collateralized loan obligation securitization debt (consolidated VIEs) 861,188 443,871
Secured borrowings 22,589 59,790
Fair Value | Level 2    
Financial liabilities:    
Secured funding agreements 840,047 755,552
Fair Value | Level 3    
Financial assets:    
Loans held for investment 2,408,463 1,800,003
Financial liabilities:    
Notes payable 51,110 63,122
Secured term loan 150,000 110,000
Collateralized loan obligation securitization debt (consolidated VIEs) 863,403 443,467
Secured borrowings $ 22,715 $ 60,215
v3.22.0.1
RELATED PARTY TRANSACTIONS - Narrative (Details)
 1 Months Ended 12 Months Ended
Jan. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
quarter
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2021
USD ($)
Aug. 31, 2021
USD ($)
Jul. 31, 2021
USD ($)
Jul. 01, 2021
USD ($)
Jun. 30, 2021
USD ($)
May 31, 2021
USD ($)
Related Party Transaction [Line Items]                    
Incentive fees incurred   $ 2,800,000 $ 800,000 $ 1,100,000            
Management fee renewal term   1 year                
Management agreement termination, termination fee times average annual base management free and incentive fees received   300.00%                
Management fee look back period   24 months                
Loans held for investment   $ 2,414,383,000 1,815,219,000              
Outstanding principal   $ 2,429,112,000 1,826,241,000              
ACREM                    
Related Party Transaction [Line Items]                    
Base management fees as a percentage of stockholders' equity per annum   1.50%                
Incentive fee payable (not less than)   $ 0                
Percentage multiplied to arrive at first value affecting calculation of incentive fees   20.00%                
Previous period for which core earnings are considered to arrive at first value affecting calculation of incentive fees   12 months                
Previous period for product of weighted average price per share and weighted average number of shares of common stock and other shares   12 months                
Percentage multiplied to arrive at difference of first value affecting calculation of incentive fees   8.00%                
Period whose fiscal quarters are considered to arrive at first value affecting calculation of incentive fees   12 months                
Minimum cumulative core earnings, number of quarters | quarter   12                
Minimum cumulative core earnings for calculation of incentive fee   $ 0                
Residential                    
Related Party Transaction [Line Items]                    
Loans held for investment   158,300,000 45,100,000              
Continuing Operations | ACREM                    
Related Party Transaction [Line Items]                    
Incentive fees incurred   15,161,000 11,912,000 10,581,000            
Incentive fees | Continuing Operations | ACREM                    
Related Party Transaction [Line Items]                    
Incentive fees incurred   2,752,000 $ 836,000 $ 1,052,000            
FLORIDA | Industrial | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Outstanding principal   25,500,000                
ILLINOIS | Industrial | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Outstanding principal                   $ 100,700,000
ILLINOIS | Industrial | Senior Mortgage Loans | Loans Held for Investment                    
Related Party Transaction [Line Items]                    
Loans held for investment                   $ 62,100,000
NEW JERSEY | Industrial | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Outstanding principal                 $ 44,700,000  
NEW JERSEY | Industrial | Senior Mortgage Loans | Loans Held for Investment                    
Related Party Transaction [Line Items]                    
Loans held for investment                 23,200,000  
NEW JERSEY | Self Storage | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Outstanding principal                 $ 40,500,000  
NEW YORK | Ares Warehouse Vehicle | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Outstanding principal             $ 227,100,000      
Pari-passu participation obligation amount           $ 85,000,000 $ 78,300,000      
NEW YORK | Ares Warehouse Vehicle | Senior Mortgage Loans | Loans Held for Investment                    
Related Party Transaction [Line Items]                    
Loans held for investment           $ 64,600,000   $ 75,000,000    
SOUTH CAROLINA | Multifamily | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Outstanding principal   67,000,000                
WASHINGTON | Multifamily | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Outstanding principal   23,100,000                
TEXAS | Industrial | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Loans held for investment   25,300,000                
Outstanding principal   30,900,000                
Senior Mortgage Loans | Loan Purchase Commitments | Industrial                    
Related Party Transaction [Line Items]                    
Outstanding principal   $ 200,000,000                
Senior Mortgage Loans | NORTH CAROLINA | Loan Purchase Commitments | Industrial                    
Related Party Transaction [Line Items]                    
Loan purchased from affiliate $ 105,500,000                  
Senior Mortgage Loans | NORTH CAROLINA | Loan Purchase Commitments | Industrial | Loans Held for Investment                    
Related Party Transaction [Line Items]                    
Outstanding principal 103,600,000                  
LIBOR Plus 3.00%, Due January 2024 | ILLINOIS | Self Storage | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Outstanding principal 5,600,000                  
LIBOR Plus 3.00%, Due January 2024 | ILLINOIS | Self Storage | Senior Mortgage Loans | Loans Held for Investment                    
Related Party Transaction [Line Items]                    
Loans held for investment 5,400,000                  
LIBOR Plus 3.00%, Due January 2024 | MISSOURI | Self Storage | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Outstanding principal 6,500,000                  
LIBOR Plus 3.00%, Due January 2024 | MISSOURI | Self Storage | Senior Mortgage Loans | Loans Held for Investment                    
Related Party Transaction [Line Items]                    
Loans held for investment 5,900,000                  
LIBOR Plus 2.90%, Due January 2024 | FLORIDA | Self Storage | Senior Mortgage Loans | Loans Held for Investment                    
Related Party Transaction [Line Items]                    
Outstanding principal 6,400,000                  
LIBOR Plus 2.90%, Due January 2024, Instrument Two | FLORIDA | Self Storage | Senior Mortgage Loans | Loans Held for Investment                    
Related Party Transaction [Line Items]                    
Outstanding principal 4,400,000                  
LIBOR Plus 2.90%, Due January 2024, Instrument Three | FLORIDA | Self Storage | Senior Mortgage Loans | Loans Held for Investment                    
Related Party Transaction [Line Items]                    
Outstanding principal 7,000,000                  
LIBOR Plus 2.90%, Due January 2024, Instrument Four | FLORIDA | Self Storage | Senior Mortgage Loans | Loans Held for Investment                    
Related Party Transaction [Line Items]                    
Outstanding principal $ 10,800,000                  
Senior Pari-passu Notes | ARIZONA | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Pari-passu participation obligation amount         $ 89,700,000          
Senior Pari-passu Notes | ARIZONA | Ares Warehouse Vehicle | Senior Mortgage Loans                    
Related Party Transaction [Line Items]                    
Outstanding principal         115,700,000          
Pari-passu participation obligation amount         26,000,000          
Senior Pari-passu Notes | ARIZONA | Ares Warehouse Vehicle | Senior Mortgage Loans | Loans Held for Investment                    
Related Party Transaction [Line Items]                    
Loans held for investment         $ 17,400,000          
v3.22.0.1
RELATED PARTY TRANSACTIONS - Related Party Costs Incurred (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Related Party Transaction [Line Items]      
Incurred $ 2,800 $ 800 $ 1,100
Payable 4,156 3,150  
ACREM | Continuing Operations      
Related Party Transaction [Line Items]      
Incurred 15,161 11,912 10,581
Payable 4,156 3,150  
ACREM | Continuing Operations | Management fees      
Related Party Transaction [Line Items]      
Incurred 9,384 7,323 6,311
Payable 2,613 1,854  
ACREM | Continuing Operations | Incentive fees      
Related Party Transaction [Line Items]      
Incurred 2,752 836 1,052
Payable 830 533  
ACREM | Continuing Operations | General and administrative expenses      
Related Party Transaction [Line Items]      
Incurred 3,016 3,653 3,026
Payable 703 762  
ACREM | Continuing Operations | Direct costs      
Related Party Transaction [Line Items]      
Incurred 9 100 $ 192
Payable $ 10 $ 1  
v3.22.0.1
DIVIDENDS AND DISTRIBUTIONS (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Nov. 03, 2021
Jul. 30, 2021
May 04, 2021
Feb. 17, 2021
Dec. 15, 2020
Sep. 16, 2020
Jun. 19, 2020
Feb. 20, 2020
Nov. 08, 2019
Jul. 26, 2019
May 01, 2019
Feb. 21, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
DIVIDENDS AND DISTRIBUTIONS                              
Dividends per share amount declared (in dollars per share) $ 0.35 $ 0.35 $ 0.35 $ 0.35 $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 1.40 $ 1.32 $ 1.32
Total cash dividends $ 16,674 $ 16,524 $ 16,528 $ 14,248 $ 11,124 $ 11,072 $ 11,072 $ 11,057 $ 9,546 $ 9,526 $ 9,527 $ 9,520 $ 63,974 $ 44,325 $ 38,119
Cash dividends payable (in dollars per share)                         $ 0.33    
Supplemental cash dividend payable (in dollars per share)                         $ 0.02    
v3.22.0.1
VARIABLE INTEREST ENTITIES - Narrative (Details)
$ in Thousands
 12 Months Ended
Jan. 28, 2021
USD ($)
Dec. 31, 2021
USD ($)
loan
Dec. 31, 2020
USD ($)
loan
Jan. 11, 2019
USD ($)
Mar. 31, 2017
USD ($)
Variable Interest Entity [Line Items]          
Debt commitment   $ 1,041,157      
Financing receivable, unpaid principal balance   105,400 $ 6,400    
Loans held for investment   2,414,383 1,815,219    
Sale of common stock   204,779 $ 73,232    
Credit risk, financial instrument, maximum exposure   238,200      
ACRE Commercial Mortgage 2021-FL4 Ltd. and ACRE Commercial Mortgage 2021-FL4 LLC | Preferred Stock          
Variable Interest Entity [Line Items]          
Sale of common stock $ 64,300        
ACRE Commercial Mortgage 2021-FL4 Ltd. and ACRE Commercial Mortgage 2021-FL4 LLC | Preferred Stock | Wholly Owned Subsidiary To Parent Company          
Variable Interest Entity [Line Items]          
Sale of common stock   $ 64,300      
Floating Rate Notes, Weighted Average Coupon Rate, LIBOR Plus 1.85%          
Variable Interest Entity [Line Items]          
Number of properties collateralized for mortgage loan | loan   16 15    
Receivables related to repayments of outstanding principal   $ 451,600 $ 550,600    
Secured, Floating Rate Notes | ACRE Commercial Mortgage 2021-FL4 Ltd. and ACRE Commercial Mortgage 2021-FL4 LLC          
Variable Interest Entity [Line Items]          
Aggregate principal amount $ 603,000        
Secured, Floating Rate Notes | ACRE Commercial Mortgage 2021-FL4 Ltd. and ACRE Commercial Mortgage 2021-FL4 LLC | Wholly Owned Subsidiary To Parent Company          
Variable Interest Entity [Line Items]          
Aggregate principal amount   62,500      
Collateral amount   126,800      
Repayments of debt   $ 121,200      
FL4 Mortgage Assets          
Variable Interest Entity [Line Items]          
Number of properties collateralized for mortgage loan | loan   17      
Receivables related to repayments of outstanding principal   $ 522,800      
Financing receivable, unpaid principal balance   23,200      
Parent Company | Offered Certificates          
Variable Interest Entity [Line Items]          
Preferred equity fully funded amount   52,900      
Parent Company | Secured funding agreements          
Variable Interest Entity [Line Items]          
Loans held for investment   111,400      
Holdco | Mortgaged Assets          
Variable Interest Entity [Line Items]          
Principal amount of certificates retained by wholly owned subsidiary of the entity   $ 58,500      
Wells Fargo Facility | Notes Payable          
Variable Interest Entity [Line Items]          
Debt commitment         $ 308,800
Wells Fargo Facility | Notes Payable | 2019 FL3 CLO Securitization          
Variable Interest Entity [Line Items]          
Debt commitment       $ 504,100  
Wells Fargo Facility | Collateralized Loan Obligations          
Variable Interest Entity [Line Items]          
Debt commitment         $ 32,400
Wells Fargo Facility | Collateralized Loan Obligations | 2019 FL3 CLO Securitization          
Variable Interest Entity [Line Items]          
Debt commitment       $ 52,900  
v3.22.0.1
SUBSEQUENT EVENTS (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Feb. 10, 2022
Jan. 13, 2022
extension
Dec. 31, 2021
USD ($)
$ / shares
Feb. 15, 2022
$ / shares
Feb. 14, 2022
USD ($)
Dec. 31, 2020
USD ($)
Subsequent Event [Line Items]            
Outstanding principal | $     $ 2,429,112     $ 1,826,241
Cash dividends payable (in dollars per share) | $ / shares     $ 0.33      
Supplemental cash dividend payable (in dollars per share) | $ / shares     $ 0.02      
Industrial | Senior Mortgage Loans | FLORIDA            
Subsequent Event [Line Items]            
Outstanding principal | $     $ 25,500      
Maximum            
Subsequent Event [Line Items]            
Extension period of maturity date     12 months      
Secured revolving funding facility | Citibank Facility            
Subsequent Event [Line Items]            
Extension period of maturity date     12 months      
Secured revolving funding facility | Citibank Facility | Maximum            
Subsequent Event [Line Items]            
Covenant ratio of debt to tangible net worth     4.00      
Secured revolving funding facility | Morgan Stanley Facility | Maximum            
Subsequent Event [Line Items]            
Covenant ratio of debt to tangible net worth     4.00      
Secured revolving funding facility | Wells Fargo Facility | Maximum            
Subsequent Event [Line Items]            
Extension period of maturity date     12 months      
Covenant ratio of debt to tangible net worth     4.00      
Subsequent Event            
Subsequent Event [Line Items]            
Cash dividends payable (in dollars per share) | $ / shares       $ 0.33    
Supplemental cash dividend payable (in dollars per share) | $ / shares       $ 0.02    
Subsequent Event | Secured revolving funding facility | Citibank Facility            
Subsequent Event [Line Items]            
Number of extensions | extension   2        
Extension period of maturity date   12 months        
Subsequent Event | Secured revolving funding facility | Citibank Facility | ACRC Lender MS | Maximum            
Subsequent Event [Line Items]            
Covenant ratio of debt to tangible net worth 4.5          
Subsequent Event | Secured revolving funding facility | MetLife Facility | ACRC Lender MS | Maximum            
Subsequent Event [Line Items]            
Covenant ratio of debt to tangible net worth 4.5          
Subsequent Event | Secured revolving funding facility | Wells Fargo Facility | ACRC Lender W and ACRC Lender W TRS | Maximum            
Subsequent Event [Line Items]            
Covenant ratio of debt to tangible net worth 4.5          
Subsequent Event | LIBOR Plus 5.90% | Industrial | Senior Mortgage Loans | FLORIDA            
Subsequent Event [Line Items]            
Outstanding principal | $         $ 5,900  
Subsequent Event | LIBOR Plus 5.90% | Industrial | Senior Mortgage Loans | FLORIDA | LIBOR            
Subsequent Event [Line Items]            
Basis spread on variable rate         5.90%  
Subsequent Event | LIBOR Plus 5.75% | Industrial | Senior Mortgage Loans | FLORIDA            
Subsequent Event [Line Items]            
Outstanding principal | $         $ 4,700  
Subsequent Event | LIBOR Plus 5.75% | Industrial | Senior Mortgage Loans | FLORIDA | LIBOR            
Subsequent Event [Line Items]            
Basis spread on variable rate         5.75%