NOTES RECEIVABLE FROM AFFILIATES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOTES RECEIVABLE FROM AFFILIATES | NOTES RECEIVABLE FROM AFFILIATES As of March 31, 2025 and December 31, 2024, the Company had the following notes receivable from affiliates outstanding (in thousands):
(1) In April 2025, Bridge Office Fund II repaid $5.0 million of the outstanding balance on its note receivable.
(2) In April 2025, Bridge Seniors Housing Fund III repaid the outstanding balance.
Interest on the notes receivable from affiliates accrued at a weighted-average fixed rate of 5.34% and 5.14% per annum as of March 31, 2025 and December 31, 2024, respectively. As of March 31, 2025 and December 31, 2024, the Company determined any reserve for credit losses related to our notes receivable from affiliates were immaterial. In making this determination management considered various factors, including the impact of challenged debt and equity capital markets that have persisted throughout 2024 and 2025, which have been particularly unfavorable in the commercial office sector. Management considered the impact of market conditions on the estimated fair values of the underlying assets, and determined the estimated fair values were sufficient to recover the corresponding notes receivable as of March 31, 2025. Management will continue to monitor the notes receivable from affiliates for potential credit losses as facts and circumstances change.
During 2025 and 2024, the Company executed multiple notes with employees, none of whom are executive officers or immediate family members of executive officers. As of March 31, 2025 and December 31, 2024, the aggregate outstanding principal amount outstanding was $5.2 million and $6.0 million, respectively. These employee notes receivable have staggered maturity dates beginning in 2025. Certain employee loans are interest-only for the first two years after origination. The employee notes receivable accrued interest at a weighted-average rate of 4.44% and 4.50% per annum as of March 31, 2025 and December 31, 2024, respectively.
As of each of March 31, 2025 and December 31, 2024, the Company had approximately $2.0 million of interest receivable outstanding, which is included in receivables from affiliates on the accompanying condensed consolidated balance sheets for the periods then ended.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||