NOTES RECEIVABLE FROM AFFILIATES |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOTES RECEIVABLE FROM AFFILIATES | NOTES RECEIVABLE FROM AFFILIATES As of June 30, 2025 and December 31, 2024, the Company had the following notes receivable from affiliates outstanding (in thousands):
(1) In July 2025, Bridge Office Fund II repaid $5.0 million of the outstanding balance on its note receivable.
Interest on the notes receivable from affiliates accrued at a weighted-average fixed rate of 5.39% and 5.14% per annum as of June 30, 2025 and December 31, 2024, respectively.
During the three and six months ended June 30, 2025, a portion of the Bridge Office Holdings LLC notes receivable, and related interest and fees, was determined to be unrecoverable. As a result, the Company recognized a credit loss expense of $2.7 million related to principal and $0.7 million related to interest and fees, which are included in general and administrative expenses on the condensed consolidated statements of operations for the three and six months ended June 30, 2025. Management also considered the impact of market conditions on the estimated fair values of the underlying assets, and determined the estimated fair values of our remaining notes receivable from affiliates were sufficient to recover
the corresponding notes as of June 30, 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 June 30, 2025 and December 31, 2024, the aggregate outstanding principal amount outstanding under the employee notes was $4.3 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 4.49% and 4.50% per annum as of June 30, 2025 and December 31, 2024, respectively.
As of each of June 30, 2025 and December 31, 2024, the Company had approximately $1.3 million and $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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||