NOTES RECEIVABLES FROM AFFILIATES |
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| NOTES RECEIVABLES FROM AFFILIATES | NOTES RECEIVABLES FROM AFFILIATES As of December 31, 2023 and 2022, the Company had the following notes receivable from affiliates outstanding (in thousands):
Interest on the short-term notes receivables from affiliates accrues at a weighted average fixed rate of 4.828% and 4.820% per annum as of December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the Company had approximately $1.3 million and $0.4 million, respectively, of interest receivable outstanding, which is included in receivables from affiliates in the accompanying consolidated balance sheets for the periods then ended. As of December 31, 2023 and 2022, the Company determined any reserve for credit losses related to our short-term notes receivables 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 2022 and 2023, which have been particularly unfavorable in the 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 receivables as of December 31, 2023. Management will continue to monitor the short-term notes receivables from affiliates for potential credit losses as facts and circumstances change.
During the years ended December 31, 2023 and 2022, the Company executed multiple notes with employees, none of whom are executive officers or immediate family members of executive officers, which were primarily used to invest in the Company or the Operating Company. As of December 31, 2023 and 2022, the aggregate outstanding principal amount outstanding was $6.7 million and $4.2 million, respectively. These employee notes receivables have staggered maturity dates beginning in 2024. Certain employee loans are interest-only for the first two years after origination. The employee notes receivables accrued interest at a weighted-average rate of 5.046% and 4.025% per annum as of December 31, 2023 and 2022, respectively.
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