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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2014	Aug. 05, 2014
Document and Entity Information
Entity Registrant Name	CIM Commercial Trust corporation
Entity Central Index Key	0000908311
Document Type	10-Q
Document Period End Date	Jun. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		97,581,598
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013
ASSETS
Investments in real estate - net	$ 1,711,510	$ 1,682,165
Cash and cash equivalents	20,030	16,796
Restricted cash	7,208	6,672
Loans receivable - net	193,319
Accounts receivable and interest receivable - net	9,990	9,303
Deferred rent receivable and charges - net	89,959	87,606
Other intangible assets - net	24,014	22,282
Other assets	16,668	9,653
TOTAL ASSETS	2,072,698	1,834,477
LIABILITIES:
Debt	601,303	395,105
Accounts payable and accrued expenses	27,013	26,109
Intangible liabilities - net	9,225	8,800
Due to related parties	8,890	6,807
Other liabilities	27,366	21,173
Total liabilities	673,797	457,994
COMMITMENTS AND CONTINGENCIES (Note 14)
EQUITY:
Common stock, $0.001 and $0.05 par value; 200,000,000 and 20,000,000 shares authorized; 97,688,863 and 4,400,000 shares issued; and 97,581,598 and 4,400,000 shares outstanding at June 30, 2014 and December 31, 2013, respectively	98	220
Preferred stock, $0.01 par value, none and 65,028,571 shares outstanding at June 30, 2014 and December 31, 2013, respectively		650
Additional paid-in capital	1,823,675	1,772,821
Distributions in excess of earnings	(422,691)	(399,953)
Stockholders' equity before treasury stock	1,401,082	1,373,738
Less: Treasury stock, at cost, 107,265 shares outstanding at June 30, 2014	(4,901)
Total stockholders' equity	1,396,181	1,373,738
Noncontrolling interests	2,720	2,745
Total equity	1,398,901	1,376,483
Beneficiaries' equity before treasury shares
TOTAL LIABILITIES AND EQUITY	$ 2,072,698	$ 1,834,477

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS
Common shares, par value (in dollars per share)	$ 0.001	$ 0.05
Common shares, authorized shares	200,000,000	20,000,000
Common shares, issued shares	97,688,863	4,400,000
Common shares, outstanding shares	97,581,598	4,400,000
Preferred shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares, outstanding shares	0	65,028,571
Treasury shares, outstanding shares	107,265

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
REVENUES:
Rental and other property income	$ 60,804	$ 55,968	$ 120,626	$ 111,135
Expense reimbursements	2,646	2,597	4,997	5,047
Interest and other income	8,008	1,273	9,958	1,964
REVENUES	71,458	59,838	135,581	118,146
EXPENSES:
Rental and other property operating	30,439	25,232	60,025	49,953
Asset management fees and other fees to related parties	6,338	5,431	12,075	10,840
Interest	4,939	4,725	9,156	9,402
General and administrative	3,610	715	4,789	1,257
Transaction costs	32	1,394	500	1,394
Depreciation and amortization	17,286	17,533	33,915	34,670
EXPENSES	62,644	55,030	120,460	107,516
Bargain purchase gain (Note 2)			4,918
INCOME BEFORE PROVISION FOR INCOME TAXES	8,814	4,808	20,039	10,630
Provision for income taxes	(300)		(308)
NET INCOME	8,514	4,808	19,731	10,630
Net income attributable to noncontrolling interests	(115)	(113)	(113)	(109)
NET INCOME ATTRIBUTABLE TO STOCKHOLDERS	8,399	4,695	19,618	10,521
COMPREHENSIVE INCOME	$ 8,399	$ 4,695	$ 19,618	$ 10,521
NET INCOME PER SHARE:
Basic (in dollars per share)	$ 0.09	$ 0.05	$ 0.20	$ 0.11
Diluted (in dollars per share)	$ 0.09	$ 0.05	$ 0.20	$ 0.11
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	97,571	95,440	96,758	95,440
Diluted (in shares)	97,576	95,440	96,764	95,440

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common Stock	Preferred Stock	Additional Paid-in Capital	Distributions In Excess of Earnings	Treasury Shares	Noncontrolling Interests
Balance at Dec. 31, 2012	$ 1,466,073	$ 220	$ 650	$ 1,772,789	$ (310,384)		$ 2,798
Balance (in shares) at Dec. 31, 2012		4,400,000	65,028,571
Increase (Decrease) in Stockholders' Equity
Distributions to noncontrolling interests	(41,185)				(41,035)		(150)
Contributions	32			32
Net income	10,630				10,521		109
Balance at Jun. 30, 2013	1,435,550	$ 220	$ 650	1,772,821	(340,898)		2,757
Balance (in shares) at Jun. 30, 2013		4,400,000	65,028,571
Balance at Dec. 31, 2013	1,376,483	$ 220	$ 650	1,772,821	(399,953)		2,745
Balance (in shares) at Dec. 31, 2013		4,400,000	65,028,571
Increase (Decrease) in Stockholders' Equity
Distributions pre-merger	(16,100)				(16,100)
Contributions from noncontrolling interests	10						10
Distributions to noncontrolling interests	(148)						(148)
Reverse acquisition capital transaction	44,610	$ 111		49,400		$ (4,901)
Reverse acquisition capital transaction (in shares)		2,119,244
Conversion of preferred stock to common stock		$ 910	$ (650)	(260)
Conversion of preferred stock to common stock (in shares)		91,039,999	(65,028,571)
Change in par value		$ (1,143)		1,143
Exercise of stock options	201			201
Exercise of stock options (in shares)		14,500
Stock based compensation expense	373			373
Stock based compensation expense (in shares)		8,000
Retirement of fractional shares	(3)			(3)
Retirement of fractional shares (in shares)		(145)
Common dividends ($0.26875 per share)	(21,671)				(21,671)
Preferred dividends ($0.0705 per share)	(4,585)				(4,585)
Net income	19,731				19,618		113
Balance at Jun. 30, 2014	$ 1,398,901	$ 98		$ 1,823,675	$ (422,691)	$ (4,901)	$ 2,720
Balance (in shares) at Jun. 30, 2014		97,581,598

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares				6 Months Ended
	Jun. 12, 2014	Apr. 28, 2014	Mar. 24, 2014	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF EQUITY
Dividends declared, common (in dollars per share)	$ 0.21875		$ 0.05	$ 0.26875
Dividends declared, preferred (in dollars per share)		$ 0.0302	$ 0.0403	$ 0.0705

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 19,731	$ 10,630
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred rent, and amortization of intangible assets, liabilities and lease inducements	(1,874)	(4,465)
Depreciation and amortization	33,915	34,670
Bargain purchase gain	(4,918)
Straight line rent, below-market ground lease and amortization of intangible assets	933	933
Amortization of deferred loan costs	652	299
Amortization of premiums and discounts on debt	(562)	(403)
Unrealized premium adjustments	782
Amortization and accretion on loans receivable, net	(1,837)
Bad debt expense	126	467
Deferred income taxes	55
Stock-based compensation	373
Loans funded, held for sale	(16,753)
Proceeds from sale of guaranteed loans	12,999
Principal collected on loans	2,071
Other operating activity	(300)
Changes in operating assets and liabilities:
Accounts receivable and interest receivable	(58)	(2,798)
Other assets	(2,151)	(1,739)
Accounts payable and accrued expenses	(6,287)	(2,422)
Deferred leasing costs	(4,542)	(1,839)
Other liabilities	2,232	(1,264)
Due to related parties	2,083	180
Net cash provided by operating activities	36,670	32,249
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to investments in real estate	(12,903)	(11,384)
Acquisition of real estate properties	(44,936)
Loans funded	(8,438)
Cash and cash equivalents acquired in connection with the merger	3,185
Principal collected on loans	25,348
Restricted cash	(536)	397
Other investing activity	160
Net cash used in investing activities	(38,120)	(10,987)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of mortgages payable	(3,194)	(4,264)
Proceeds from unsecured revolving lines of credit, revolving credit facility and term note	142,900	26,000
Payment of unsecured revolving line of credit, revolving credit facility and term note	(32,900)
Payment of principal on secured borrowings - government guaranteed loans	(2,071)
Proceeds from secured borrowings - government guaranteed loans	1,978
Payment of deferred loan costs	(447)	(8)
Payment of dividends	(26,256)
Payment of special dividend and dividend assumed in acquisition	(59,286)
Distributions pre-merger	(16,100)	(41,035)
Contributions		32
Contributions from noncontrolling interests	10
Proceeds from issuance of stock	201
Retirement of fractional shares of common shares	(3)
Noncontrolling interests' distributions	(148)	(150)
Net cash provided by (used in) financing activities	4,684	(19,425)
NET INCREASE IN CASH AND CASH EQUIVALENTS	3,234	1,837
CASH AND CASH EQUIVALENTS:
Beginning of period	16,796	31,514
End of period	20,030	33,351
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest	9,055	9,502
Federal income taxes paid	334
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Additions to investments in real estate included in accounts payable and accrued expenses	3,168	$ 2,106
Additions to deferred loan costs included in accounts payable and accrued expenses	$ 120

ORGANIZATION AND OPERATIONS	6 Months Ended
ORGANIZATION AND OPERATIONS	Jun. 30, 2014
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS	1. ORGANIZATION AND OPERATIONS CIM Commercial Trust Corporation ("CIM Commercial") or together with its wholly-owned subsidiaries, "we," "us" or "our," invests in substantially stabilized real estate assets located in high-population density, high- barrier-to-entry urban markets, which include traditional downtown areas and urban main streets that lie within the metropolitan areas of the United States of America. We also obtain income from the yield and other related fee income earned on our investments from our lending activities, which have principally been to borrowers in the hospitality industry. We were originally organized in 1993 as PMC Commercial Trust ("PMC Commercial"), a Texas real estate investment trust. On April 28, 2014, PMC Commercial's charter was amended to increase the authorized shares of common stock of PMC Commercial from 100,000,000 to 1,000,000,000 shares (20,000,000 and 200,000,000 after giving effect to the reverse stock split described below) and PMC Commercial changed its state of incorporation (the "Reincorporation") from Texas to Maryland by means of a merger of PMC Commercial with and into a newly formed, wholly-owned subsidiary Maryland corporation. In addition, we changed our name to CIM Commercial Trust Corporation on April 29, 2014. Our common stock ("Common Stock") is currently traded on the NASDAQ Global Market (symbol "CMCT"). On April 28, 2014, we filed Articles of Amendment (the "Reverse Split Amendment") to effectuate a one-for-five reverse stock split of the Common Stock, effective April 29, 2014. Pursuant to the reverse stock split, each five shares of Common Stock issued and outstanding immediately prior to the effective time of the reverse stock split were converted into one (1) share of Common Stock. Fractional shares of Common Stock were not issued as a result of the reverse stock split; instead, holders of pre-split shares of Common Stock who otherwise would have been entitled to receive a fractional share of Common Stock received an amount in cash equal to the product of the fraction of a share multiplied by the closing price of the Common Stock (as adjusted for the one-for-five reverse stock split) on April 28, 2014. In connection with and immediately following the filing of the Reverse Split Amendment, the Company filed Articles of Amendment (the "Par Value Amendment") to decrease the par value of the Common Stock issued and outstanding to $0.001 per share, effective April 29, 2014, subsequent to the effective time of the Reverse Split Amendment. All per share and outstanding share information has been presented to reflect the reverse stock split.

MERGER

6 Months Ended

Jun. 30, 2014

MERGER

MERGER

2. MERGER

On July 8, 2013, our predecessor, PMC Commercial, entered into a merger agreement (the "Merger Agreement") with CIM Urban REIT, LLC ("CIM Urban REIT") and subsidiaries of the respective parties. CIM Urban REIT was a private commercial REIT and was the owner of CIM Urban Partners, LP ("CIM Urban"). The transaction (the "Merger") was completed on March 11, 2014 (the "Acquisition Date").

The Merger Agreement provided for a business combination between PMC Commercial and CIM Urban. Pursuant to the Merger Agreement, PMC Commercial issued 4,400,000 shares of Common Stock and 65,028,571 shares of preferred stock. Each share of preferred stock converted into 1.4 shares of Common Stock (as adjusted for the one-for-five reverse stock split) in April 2014, resulting in the issuance of approximately 91,039,999 shares of Common Stock. This represented approximately 97.8% of PMC Commercial's outstanding stock on the Acquisition Date.

All Common Stock that was outstanding immediately prior to the closing of the Merger remained outstanding following the Acquisition Date. In addition, stockholders of record at the close of the business day prior to the Acquisition Date received a special cash dividend of $27.50 per share of Common Stock, which was paid on March 25, 2014.

The Merger was accounted for as a reverse acquisition under the acquisition method of accounting with CIM Urban considered to be the accounting acquirer based upon the terms of the Merger Agreement. Based on the determination that CIM Urban was the accounting acquirer in the transaction, CIM Urban allocated the purchase price to the fair value of PMC Commercial's assets and liabilities as of the Acquisition Date.

Accordingly, the accompanying financial statements (1) include the historical financial information for CIM Urban for all periods presented, (2) include the assets and liabilities of PMC Commercial acquired on March 11, 2014 in the consolidated balance sheet as of June 30, 2014 and (3) include the results of PMC Commercial's operations and cash flows in the consolidated statements of operations and comprehensive income and cash flows for the period from the Acquisition Date through June 30, 2014. The equity of CIM Commercial is the historical equity of CIM Urban retroactively restated to reflect the number of shares of stock issued by PMC Commercial pursuant to the Merger Agreement. In connection with the reverse acquisition, for purposes of presenting equity for CIM Commercial, the historical stockholders of PMC Commercial were deemed to have been issued 2,119,244 shares of Common Stock (2,226,509 shares of Common Stock, less 107,265 shares of treasury stock) on the Acquisition Date.

Consideration Transferred—The fair value of the consideration transferred in the reverse acquisition is determined based on the number of shares of stock the accounting acquirer would have to issue to the stockholders of the accounting acquiree in order to provide the same ratio of ownership in the combined entity following the completion of the Merger, and was determined to be the outstanding stock of PMC Commercial as of the Acquisition Date. The fair value of the consideration transferred was based on the most reliable measure, which was determined to be the market price of PMC Commercial stock as of the Acquisition Date. The computation of the fair value of the consideration transferred, based on the market price of PMC Commercial stock on the Acquisition Date, is as follows:

	(in thousands, except per share data)

PMC Commercial common stock outstanding		2,119
Equity consideration price per share of common stock	$	21.05


Fair value of the equity consideration		44,610
Payment in cash—special dividend		58,279


Total purchase price	$	102,889

Purchase Price Allocation—As CIM Urban was the accounting acquirer in the business combination, it has allocated the purchase price to PMC Commercial's individually identifiable assets acquired and liabilities assumed based on their estimated fair values on the Acquisition Date. A bargain purchase gain was recorded as of the Acquisition Date in the amount equal to the excess of the fair value of the identifiable net assets acquired over the total purchase price.

The following table summarizes the allocation of the purchase price:

	(in thousands)

Assets
Cash and cash equivalents	$	3,185
Loans receivable		207,140
Accounts receivable and interest receivable		755
Other assets		5,396
Intangible assets		2,957


Total assets acquired		219,433


Liabilities
Debt		99,849
Accounts payable and accrued expenses		7,396
Special dividend liability and dividend payable		59,286
Other liabilities		3,374


Total liabilities assumed		169,905


Net identifiable assets acquired		49,528
Bargain purchase gain		(4,918	)


Net purchase price	$	44,610

Pro Forma Financial Information—The following pro forma consolidated results of net income for the six months ended June 30, 2014 and 2013 assume the business combination was completed as of January 1, 2013:

	Six Months Ended June 30,

	2014		2013
	(in thousands, except per share amounts)
Pro forma revenues	$	138,916	$	128,640
Pro forma net income	$	15,489	$	14,575
Pro forma basic earnings per share	$	0.16	$	0.15
Pro forma diluted earnings per share	$	0.16	$	0.15

The pro forma amounts include the historical operating results of CIM Urban and PMC Commercial prior to the business combination, with adjustments directly attributable to the business combination. The pro forma results for the six months ended June 30, 2014 exclude transaction costs of $3,046,000 and the $4,918,000 bargain purchase gain recorded on the Acquisition Date.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2014

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

For more information regarding our significant accounting policies and estimates, please refer to "Summary of Significant Accounting Policies" contained in Note 3 to CIM Urban's consolidated financial statements for the year ended December 31, 2013, included in our Current Report on Form 8-K/A dated May 9, 2014.

Interim Financial Information—The accompanying interim consolidated financial statements of CIM Commercial have been prepared by our management in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Certain information and note disclosures required for annual financial statements have been condensed or excluded pursuant to Securities and Exchange Commission ("SEC") rules and regulations. Accordingly, the interim consolidated financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. Our accompanying interim consolidated financial statements should be read in conjunction with CIM Urban's audited consolidated financial statements and the notes thereto, included in our Current Report on Form 8-K/A dated May 9, 2014.

Principles of Consolidation—The consolidated financial statements include the accounts of CIM Commercial and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Investments in Real Estate—Real estate acquisitions are recorded at cost as of the acquisition date. Costs related to the acquisition of properties are expensed as incurred. Investments in real estate are stated at depreciated cost. Depreciation and amortization are recorded on a straight line basis over the estimated useful lives as follows:


Buildings and improvements		15 - 40 years
Furniture, fixtures, and equipment		3 - 5 years
Tenant improvements		Shorter of the useful lives or the terms of the related leases

Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred.

Investments in real estate are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount to the future net cash flows, undiscounted and without interest, expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The estimated fair value of the asset group identified for step two testing is based on either the income approach with market discount rate, terminal capitalization rate and rental rate assumptions being most critical, or on the sales comparison approach to similar properties. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. No impairment of long-lived assets was recognized during the three and six months ended June 30, 2014 and 2013.

Loans Receivable—We primarily originate loans to small businesses collateralized by first liens on the real estate of the related business. Loans receivable are carried at their unamortized principal balance less unamortized acquisition discounts and loan loss reserves, if applicable, and adjusted for capitalized loan origination costs. For loans originated under the Small Business Administration's (the "SBA") 7(a) Guaranteed Loan Program (the "SBA 7(a) Program") upon sale of the SBA guaranteed portion of the loans which are accounted for as sales, the unguaranteed portion of the loan retained by us is valued on a fair value basis and a discount is recorded as a reduction in basis of the retained portion of the loan.

We have a quarterly review process to identify and evaluate potential exposure to loan losses. Loans that require specific identification review are identified based on one or more negative characteristics including, but not limited to, non-payment or lack of timely payment of principal and/or interest or property taxes or deterioration of the physical property. The specific identification process begins with management's evaluation of the estimated fair value of the loan utilizing the present value of the expected future cash flows discounted at the loan's effective interest rate and/or an estimation of underlying collateral values. The probability of loss is then determined based on various factors including our historical experience with similar borrowers and/or individual borrower or collateral characteristics, and in certain circumstances, the strength of the guarantors. The liquidation probability is then applied to the identified loss exposure to determine the general or specific reserve for that loan.

At the Acquisition Date, the carrying value of our loans was adjusted to estimated fair market value and acquisition discounts of $33,907,000 were recorded, which is being accreted to interest income using the effective interest method. We will establish a general loan loss reserve when available information indicates that it is probable a loss has occurred based on the carrying value of the portfolio and the amount of the loss can be reasonably estimated. Significant judgment is required in determining the general loan loss reserve, including estimates of the likelihood of default and the estimated fair value of the collateral. The general loan loss reserve includes those loans, which may have negative characteristics which have not yet become known to us. In addition to the reserves established on loans not considered impaired that have been evaluated under a specific evaluation, the general loan loss reserve uses a consistent methodology to determine a loss percentage to be applied to loan balances. These loss percentages are based on many factors, primarily cumulative and recent loss history and general economic conditions.

We recognized interest income and fees for the three and six months ended June 30, 2013, related to a first mortgage note on a hotel located near the Los Angeles Airport ("LAX") of $0 and $316,000, respectively. On October 8, 2013, we submitted the highest bid at a foreclosure auction and took possession of the hotel. The mortgage note investment basis was transferred to the property components at their relative fair values on title transfer.

Deferred Rent Receivable and Charges—Deferred rent receivable and charges consist of deferred rent, deferred loan costs and deferred leasing costs. Deferred rent receivable is $50,971,000 and $49,543,000 at June 30, 2014, and December 31, 2013, respectively. Deferred loan costs, which represent legal and third-party fees incurred in connection with our borrowing activities, are capitalized and amortized to interest expense on a straight line basis over the life of the related loan, approximating the effective interest method. Deferred loan costs of $6,315,000 and $5,748,000 are presented net of accumulated amortization of $4,272,000 and $3,620,000 at June 30, 2014, and December 31, 2013, respectively. Deferred leasing costs, which represent lease commissions and other direct costs associated with the acquisition of tenants, are capitalized and amortized on a straight line basis over the terms of the related leases. Deferred leasing costs of $60,368,000 and $55,826,000 are presented net of accumulated amortization of $23,423,000 and $19,891,000 at June 30, 2014, and December 31, 2013, respectively.

Noncontrolling Interests—Noncontrolling interests represent interests in the various properties not owned by us.

Consolidation Considerations for Our Investments in Real Estate—Accounting Standards Codification ("ASC") 810-10, Consolidation, addresses how a business enterprise should evaluate whether it has a controlling interest in an entity through means other than voting rights that would require the entity to be consolidated. We analyze our investments in real estate in accordance with this accounting standard to determine whether they are variable interest entities, and if so, whether we are the primary beneficiary. Our judgment with respect to our level of influence or control over an entity and whether we are the primary beneficiary of a variable interest entity involves consideration of various factors, including the form of our ownership interest, our voting interest, the size of our investment (including loans), and our ability to participate in major policy-making decisions. Our ability to correctly assess our influence or control over an entity affects the presentation of these investments in our consolidated financial statements.

Use of Estimates—The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Reclassifications—Certain prior-period amounts have been reclassified to conform with the current-period presentation. For the three and six months ended June 30, 2013, hotel revenues of $10,555,000 and $20,132,000, respectively, have been reclassified to rental and other property income, other income of $1,266,000 and $1,640,000, respectively, has been reclassified to interest and other income, and hotel operating expenses of $7,042,000 and $13,481,000, respectively, have been reclassified to rental and other property operating expenses.

Recently Issued Accounting Pronouncements—In April 2014, the Financial Accounting Standards Board ("the FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360). Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions that do not meet the discontinued-operations criteria. The revised guidance is effective prospectively to all disposals (or classifications as held for sale) that occur in annual periods (and interim periods therein) beginning on or after December 15, 2014, with early adoption permitted. Entities are prohibited from applying the new ASU to any component, equity method investment, or acquired business that is classified as held for sale before the adoption date. We early adopted this guidance during the second quarter of 2014, and the adoption did not have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including the guidance on real estate de-recognition for most transactions. For public entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early application is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in the ASU. The modified approach provides entities relief from having to restate and present comparable prior-year financial statement information; however, entities will still need to evaluate existing contracts as of the date of initial adoption under the ASU to determine whether a cumulative adjustment is necessary. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

ACQUISITIONS

6 Months Ended

Jun. 30, 2014

ACQUISITIONS

ACQUISITIONS

4. ACQUISITIONS

The fair value of real estate acquired is recorded to (1) the acquired tangible assets, consisting of land; land improvements; building and improvements; furniture, fixtures, and equipment; tenant improvements; and (2) identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases and tenant relationships, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. Above-market ground leases are recorded based on the respective fair value of the ground leases.

During the six months ended June 30, 2014, we acquired a 100% fee-simple interest in an office building located in Los Angeles from an unrelated third party. Built in 1984, the building has approximately 143,000 square feet of rentable space and is located in the Mid-Wilshire submarket of Los Angeles. The acquisition was funded with proceeds from a drawdown on one of CIM Urban's unsecured credit facilities.

Property	Asset Type				Purchase Price

					(in thousands)
4750 Wilshire Blvd., Los Angeles, CA	Office	April 18, 2014	1	143,000	$	44,936

The results of the operations of the property acquired have been included in the consolidated statements of operations from the date of acquisition. The fair value of the assets acquired and liabilities assumed for the above-noted acquisition during the six months ended June 30, 2014 are as follows:

	2014 Acquisition

	(in thousands)
Land	$	16,633
Land improvements		348
Building and improvements		27,947
Tenant improvements		691
Acquired in-place leases(1)		1,087
Acquired below-market leases(2)		(1,770	)


Net assets acquired	$	44,936

(1): In-place leases have a weighted average amortization period of 5.0 years.
(2): Below-market leases have a weighted average amortization period of 5.0 years.

Acquisition related expenses of $32,000 associated with the acquisition of real estate in 2014 were expensed as incurred during the six months ended June 30, 2014, respectively. No acquisitions of real estate were made during the six months ended June 30, 2013.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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+ Details

INVESTMENTS IN REAL ESTATE

6 Months Ended

Jun. 30, 2014

INVESTMENTS IN REAL ESTATE

INVESTMENTS IN REAL ESTATE

5. INVESTMENTS IN REAL ESTATE

Investments in real estate consist of the following:

	June 30, 2014			December 31, 2013

	(in thousands)
Land	$	347,693		$	331,060
Land improvements		27,884			27,536
Buildings and improvements		1,486,103			1,454,854
Furniture, fixtures, and equipment		23,332			23,051
Tenant improvements		191,451			183,915
Work in progress		12,137			9,987


		2,088,600			2,030,403
Accumulated depreciation		(377,090	)		(348,238	)


Net investments in real estate	$	1,711,510		$	1,682,165

LOANS RECEIVABLE

6 Months Ended

Jun. 30, 2014

LOANS RECEIVABLE

LOANS RECEIVABLE

6. LOANS RECEIVABLE

Loans receivable consist of the following:

	June 30, 2014

	(in thousands)
Commercial mortgage loans	$	120,153
SBA 7(a) loans, subject to secured borrowings		40,039
SBA 7(a) loans		32,998


Loans receivable		193,190
Deferred capitalized costs		129


Net loans receivable	$	193,319

Commercial mortgage loans—Represents loans to small businesses primarily collateralized by first liens on the real estate of the related business.

SBA 7(a) loans, subject to secured borrowings—Represents the government guaranteed portion of loans which were sold with the proceeds received from the sale reflected as secured borrowings—government guaranteed loans (included in debt on our consolidated balance sheet). There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal.

SBA 7(a) loans—Represents the non-government guaranteed retained portion of loans originated under the SBA 7(a) Program and the government guaranteed portion of loans that have not yet been fully funded or sold.

Aging—The following tables represent an aging of our "Loans Receivable Subject to Credit Risk" (loans receivable less SBA 7(a) loans, subject to secured borrowings as the SBA has guaranteed payment of the principal).

June 30, 2014	Commercial Mortgage Loans				SBA 7(a) Loans				Totals

	(dollars in thousands)
Current	$	119,326	99.3	%	$	32,836	99.5	%	$	152,162	99.4	%
Between 29 and 59 days delinquent		—	—			162	0.5			162	0.1
Between 60 and 89 days delinquent		—	—			—	—			—	—
Over 89 days delinquent		827	0.7			—	—			827	0.5


	$	120,153	100.0	%	$	32,998	100.0	%	$	153,151	100.0	%

Loan Portfolio Classification—Management closely monitors our loans which require evaluation for loan loss reserves based on specific identification metrics which are classified into three categories: Doubtful, Substandard and Other Assets Especially Mentioned ("OAEM"). Loans classified as Doubtful are generally loans which are not complying with their contractual terms, the collection of the balance of the principal is considered impaired and on which the fair value of the collateral is less than the remaining unamortized principal balance. These loans are typically placed on non-accrual status and are generally in the foreclosure process. Loans classified as Substandard are generally those loans that are either not complying or had previously not complied with their contractual terms and have other credit weaknesses which may make payment default or principal exposure likely but not yet certain. Loans classified as OAEM are generally loans for which the credit quality of the borrowers has temporarily deteriorated. Typically, the borrowers are current on their payments; however, they may be delinquent on their property taxes, insurance, or franchise fees or may be under agreements which provide for interest only payments during a short period of time.

Management has classified our Loans Receivable Subject to Credit Risk as follows:

June 30, 2014	Commercial Mortgage Loans				SBA 7(a) Loans				Totals

	(dollars in thousands)
Satisfactory	$	116,527	97.0	%	$	32,368	98.1	%	$	148,895	97.2	%
OAEM		1,947	1.6			—	—			1,947	1.3
Substandard		849	0.7			539	1.6			1,388	0.9
Doubtful		830	0.7			91	0.3			921	0.6


	$	120,153	100.0	%	$	32,998	100.0	%	$	153,151	100.0	%

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2014

OTHER INTANGIBLE ASSETS

OTHER INTANGIBLE ASSETS

7. OTHER INTANGIBLE ASSETS

A schedule of the intangible assets and liabilities and related accumulated amortization and accretion as of June 30, 2014, and December 31, 2013, is as follows:

	Assets																				Liabilities

June 30, 2014	Acquired Above-Market Leases			Acquired In-Place Leases			Tax Abatement			Advance Bookings			Franchise Affiliation Fee			Acquired Below-Market Ground Lease			Trade-Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	8,017		$	80,732		$	4,273		$	8,329		$	3,936		$	11,685		$	2,957	$	(63,093	)
Accumulated amortization		(7,487	)		(74,662	)		(1,496	)		(8,273	)		(2,785	)		(1,212	)		—		53,868


	$	530		$	6,070		$	2,777		$	56		$	1,151		$	10,473		$	2,957	$	(9,225	)




Average useful life (in years)		4			6			8			3			10			84			Indefinite		6

	Assets																		Liabilities

December 31, 2013	Acquired Above-Market Leases			Acquired In-Place Leases			Tax Abatement			Advance Bookings			Franchise Affiliation Fee			Acquired Below-Market Ground Lease			Acquired Below-Market Leases
	(in thousands)
Gross balance	$	8,017		$	79,645		$	4,273		$	8,329		$	3,936		$	11,685		$	(61,323	)
Accumulated amortization		(7,052	)		(73,463	)		(1,220	)		(8,139	)		(2,587	)		(1,142	)		52,523


	$	965		$	6,182		$	3,053		$	190		$	1,349		$	10,543		$	(8,800	)




Average useful life (in years)		4			5			8			3			10			84			6

The amortization of the above-market leases which decreased rental and other property income were $98,000 and $196,000 for the three months ended June 30, 2014 and 2013, respectively and $435,000 and $396,000 for the six months ended June 30, 2014 and 2013, respectively. The amortization of the below-market leases included in rental and other property income were $697,000 and $796,000 for the three months ended June 30, 2014 and 2013, respectively and $1,345,000 and $1,592,000 for the six months ended June 30, 2014 and 2013, respectively. The amortization of in-place leases included in depreciation and amortization expense was $587,000 and $927,000 for the three months ended June 30, 2014 and 2013, respectively and $1,199,000 and $1,874,000 for the six months ended June 30, 2014 and 2013, respectively. Included in depreciation and amortization expense are franchise affiliation fee amortization of $99,000 for each of the three months ended June 30, 2014 and 2013, and $198,000 for each of the six months ended June 30, 2014 and 2013, respectively. The amortization of advance bookings included in depreciation and amortization expense was $67,000 and $0 for the three months ended June 30, 2014 and 2013, respectively and $134,000 and $0 for the six months ended June 30, 2014 and 2013, respectively. Tax abatement amortization of $138,000 for each of the three months ended June 30, 2014 and 2013 and $276,000 for each of the six months ended June 30, 2014 and 2013 are included in rental and other property operating expenses. Amortization of below-market ground lease obligation of $35,000 for each of the three months ended June 30, 2014 and 2013 and $70,000 for each of the six months ended June 30, 2014 and 2013 are included in rental and other property operating expenses.

A schedule of future amortization and accretion of acquisition related intangible assets and liabilities as of June 30, 2014, is as follows:

	Assets												Liabilities

Years Ending December 31,	Acquired Above-Market Leases		Acquired In-Place Leases		Tax Abatement		Advance Bookings		Franchise Affiliation Fee		Acquired Below-Market Ground Lease		Acquired Below-Market Leases
	(in thousands)
2014 (Six months ending December 31, 2014)	$	167	$	1,084	$	275	$	56	$	196	$	70	$	(1,246	)
2015		241		1,606		551		—		394		140		(2,435	)
2016		88		1,111		551		—		394		140		(2,368	)
2017		26		665		551		—		167		140		(2,261	)
2018		8		415		551		—		—		140		(824	)
Thereafter		—		1,189		298		—		—		9,843		(91	)


	$	530	$	6,070	$	2,777	$	56	$	1,151	$	10,473	$	(9,225	)

DEBT

6 Months Ended

Jun. 30, 2014

DEBT

DEBT

8. DEBT

Information on our debt is as follows:

	June 30, 2014			December 31, 2013

	(in thousands)
Mortgage loan with a fixed interest rate of 7.66% per annum, with monthly payments of principal and interest. The loan has a 20-year amortization schedule with a $25,324,000 balance due on December 1, 2015. The loan is nonrecourse.	$	27,537		$	28,262
Mortgage loan with a fixed interest rate of 4.50% per annum, with monthly payments of interest only for 10 years, and payments of interest and principal starting in February 2022. The loan has a $42,008,000 balance due on January 5, 2027. The loan is nonrecourse.		46,000			46,000
Mortgage loan with a fixed interest rate of 5.56% per annum, with monthly payments of principal and interest. The loan has a 10-year amortization schedule with a $12,288,000 balance due on July 1, 2015. The loan is nonrecourse.		12,590			12,737
Mortgage loan with a fixed interest rate of 6.65% per annum, with monthly payments of principal and interest. The loan has a 25-year amortization schedule with a $21,136,000 balance due on July 15, 2018. The loan is nonrecourse.		33,432			34,755
Mortgage loan with a fixed interest rate of 5.06% per annum, with monthly payments of principal and interest, and a balance of $33,068,000 due on September 1, 2015. The loan is nonrecourse.		34,161			34,583
Mortgage loans with a fixed interest rate of 5.39% per annum, with monthly payments of principal and interest, and a balance of $35,695,000 due on March 1, 2021. The loans are nonrecourse.		40,850			41,170
Mortgage loan with a fixed interest rate of 5.18% per annum, with monthly payments of principal and interest, and a balance of $26,232,000 due on June 5, 2021. The loan is nonrecourse.		30,555			30,812


		225,125			228,319
Premiums and discounts on assumed mortgages		2,373			2,786


Total Mortgages Payable		227,498			231,105


Secured borrowing principal on loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.99%		32,057			—
Secured borrowing principal on loans sold for excess spread, variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.58%		5,153			—


		37,210			—
Premiums on loans sold for a premium and excess spread		3,024			—


Total Secured borrowings—government guaranteed loans		40,234			—


Junior subordinated notes with a variable interest rate which resets quarterly based on the 90-day LIBOR plus 3.25%, with quarterly interest payments due. Balance due at maturity on March 30, 2035.		27,070			—
Term note with a fixed interest rate of 2.74%, principal and interest due at maturity on September 10, 2014.		20,000			—
Unsecured revolving line of credit with variable interest rate of prime less 50 basis points, with monthly interest payments due. Matures June 30, 2015.		700			—
Unsecured revolving lines of credit		288,000			164,000


		335,770			164,000
Discount on junior subordinated notes		(2,199	)		—


Total Other		333,571			164,000


Total Debt	$	601,303		$	395,105

The mortgages payable are secured by deeds of trust on certain of the properties and assignments of rents.

Secured borrowings represent sold SBA 7(a) Program loans which are treated as secured borrowings since the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Transfers and Servicing. Principal payments are dependent upon cash flows received from the underlying loans. No payment is due unless payments are received from the borrowers on the underlying loans.

CIM Commercial's $20,000,000 term note and $25,000,000 unsecured revolving line of credit have covenants including a covenant requiring an asset coverage test (eligible loans receivable) for balances outstanding under its revolving credit facility of 3.00 times. To the extent the term note is repaid, credit availability under the revolving credit facility will increase to $40,000,000. As of June 30, 2014, $24,300,000 was available for future borrowing.

In February 2012, CIM Urban entered into an unsecured revolving line of credit with a bank syndicate, which allows for maximum borrowings of $100,000,000. Borrowings under the line of credit are limited by certain borrowing base calculations. Outstanding advances under the line of credit bore interest at the base rate, as defined, plus 0.75% to 1.50% or LIBOR plus 1.75% to 2.50%, depending on the maximum consolidated leverage ratio, as defined, until August 2013. In August 2013, the unsecured revolving line was amended, and outstanding advances under the line bear interest at the base rate, as defined, plus 0.25% to 0.85% or LIBOR plus 1.25% to 1.85%, depending on the maximum consolidated leverage ratio, as defined. The line of credit is also subject to an unused commitment fee of 0.25% or 0.35% depending on the amount of aggregate unused commitments. The line of credit matures in February 2016, with a one-year extension option under certain conditions. As of both June 30, 2014, and December 31, 2013, $100,000,000 was outstanding under the line of credit, and $0, was available for future borrowings.

In August 2013, CIM Urban entered into another unsecured revolving credit facility with a syndicate of banks. The credit facility provides an additional $125,000,000 of borrowing capacity that was increased to $150,000,000. CIM Urban amended the facility in April 2014 to further increase the maximum aggregate borrowing capacity under the revolving credit facility to $200,000,000. Borrowings under the revolving credit facility are limited by certain borrowing base calculations. Outstanding advances under the revolving credit facility bear interest at the base rate, as defined, plus 0.25% to 0.85% or LIBOR plus 1.25% to 1.85%, depending on the maximum consolidated leverage ratio, as defined. The revolving credit facility is also subject to an unused commitment fee of 0.25% or 0.35% depending on the amount of aggregate unused commitments. The revolving credit facility originally matured in February 2014, and was recently extended to October 10, 2014. As of June 30, 2014, and December 31, 2013, $188,000,000 and $64,000,000, respectively, was outstanding under the revolving credit facility, and $12,000,000 and $61,000,000, respectively, was available for future borrowings.

At June 30, 2014 and December 31, 2013, CIM Commercial and CIM Urban were either in compliance with all of their respective financial covenants or had obtained waivers from the relevant lenders with respect to such compliance.

We are currently in negotiations with two banks, as joint lead arrangers, to finalize an unsecured term loan and a revolving credit facility of $550,000,000, with an accordion feature which would increase the maximum aggregate facilities to $850,000,000. We intend to use the proceeds of these new facilities to repay all of our outstanding term and revolving credit facilities. We expect to close the new term loan and revolving credit facilities by the end of the third quarter of 2014. However, there can be no assurance that our negotiation of the new term and revolving credit facilities will be successful or that the closing of these new facilities will occur in the time frame described above. In addition, if the new term and revolving credit facilities fail to close for any reason or closing is delayed substantially beyond the time frame described above, there can be no assurances we will be able to successfully negotiate an extension of our existing credit facilities or any increased maximum availability. However, we believe other financing sources would be available to us.

At June 30, 2014, and December 31, 2013, accrued interest and unused commitment fee payable of $1,155,000 and $1,017,000, respectively, is included in accounts payable and accrued expenses.

Future principal payments on our debt (face value) at June 30, 2014 are as follows:

Years Ending December 31,	Secured Borrowings Principal(1)		Mortgages Payable		All Other Principal(2)		Total

	(in thousands)
2014 (Six months ending December 31, 2014)	$	575	$	3,278	$	208,000	$	211,853
2015		1,180		77,055		700		78,935
2016		1,220		4,354		100,000		105,574
2017		1,263		4,642		—		5,905
2018		1,309		24,300		—		25,609
Thereafter		31,663		111,496		27,070		170,229


	$	37,210	$	225,125	$	335,770	$	598,105

(1): Principal payments are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled principal payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and/or loan liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans.
(2): Represents the revolving credit facility, term note, junior subordinated notes, and unsecured revolving lines of credit.

STOCK BASED COMPENSATION PLANS

6 Months Ended

Jun. 30, 2014

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS

9. STOCK-BASED COMPENSATION PLANS

As of the Acquisition Date, we had 19,700 options outstanding under stock-based compensation plans. The options are fully vested, and were repriced as of the Acquisition Date. Of these options, 14,500 were exercised during the six months ended June 30, 2014 for proceeds of approximately $201,000.

We granted 11,850 options on June 12, 2014 at an exercise price of $23.16 (the closing price of our Common Stock on such date). The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:

Assumptions

Expected term (years)	3.0
Risk-free interest rate	0.94	%
Expected dividend yield	3.78	%
Expected volatility	9.37	%
Expected forfeiture rate	1.0	%

The expected term of the options granted represents the period of time that the options are expected to be outstanding and was based on historical data. The risk-free rate was based on the three-year U.S. Treasury rate corresponding to the expected term of the options. We used historical information to determine our expected volatility and forfeiture rate. We recorded compensation expense of $8,000 during the three and six months ended June 30, 2014 related to this option grant.

On April 28, 2014, our stockholders approved the First Amendment to the PMC Commercial Trust 2005 Equity Incentive Plan (the "Plan Amendment") to increase the aggregate number of shares of Common Stock thereunder from 100,000 to 300,000 shares and increase the annual limitation on restricted Common Stock grants to all independent directors in the aggregate to 100,000 restricted shares of Common Stock and to each executive officer to no more than 4,000 restricted shares of Common Stock during any fiscal year. On March 11, 2014, we granted Common Stock awards of 2,000 restricted shares of Common Stock to each of the independent members of the board of directors (the "Board of Directors") (6,000 in aggregate) which awards were effective upon the receipt of stockholder approval of the Plan Amendment. The shares of Common Stock vest based on a year of continuous service. Compensation expense related to these restricted shares of Common Stock is being recognized over the vesting period. We recorded compensation expense of $31,000 during the three and six months ended June 30, 2014 related to these restricted shares of Common Stock.

We issued an aggregate of 2,000 restricted shares of Common Stock to two of our executive officers on May 6, 2014. The restricted shares of Common Stock vest based on two years of continuous service with one-third of the shares of Common Stock vesting immediately upon issuance and one-third vesting at the end of each of the next two years. Compensation expense related to these restricted shares of Common Stock is being recognized over the vesting period. We recognized compensation expense of $19,000 during the three and six months ended June 30, 2014 related to these restricted shares of Common Stock.

In accordance with the employment agreements of two of our executive officers, to the extent the executive is employed by us on January 1, 2016 and such executive is not entitled to any disability, death or severance payments, the executive would be awarded restricted shares of Common Stock as a retention bonus which would vest immediately upon grant. In aggregate, the executive officers would receive 105,000 Common Stock awards. We recorded compensation expense of $315,000 during the three and six months ended June 30, 2014 related to these Common Stock awards.

As of June 30, 2014, there was $2,017,000 of total unrecognized compensation expense related to shares of Common Stock which will be recognized over the next two years.

EARNINGS PER SHARE (''EPS'')	6 Months Ended
EARNINGS PER SHARE (''EPS'')	Jun. 30, 2014
EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS")	10. EARNINGS PER SHARE ("EPS") The computations of basic EPS are based on our weighted average shares outstanding. During the three and six months ended June 30, 2014, the weighted average shares outstanding were increased by 5,000 and 6,000 shares, respectively, to reflect the dilutive effect of stock options. Not included in the computation of diluted EPS were outstanding options to purchase 11,850 shares of Common Stock during the three and six months ended June 30, 2014, because the options' exercise prices were greater than the average market price of the shares. For purposes of calculating basic EPS for the three and six months ended June 30, 2013, the 65,028,571 shares of preferred stock issued in connection with the Merger have been assumed to have been converted into 91,039,999 shares of Common Stock. As of the Acquisition Date, a subsidiary of CIM Urban REIT had agreed to vote its 97.8% post-Merger ownership of CIM Commercial in favor of an increase in the number of authorized CIM Commercial shares of Common Stock to one billion, thereby satisfying the condition for the automatic conversion of these shares. The actual conversion of the shares of preferred stock to shares of Common Stock occurred on April 29, 2014.

DIVIDENDS DECLARED	6 Months Ended
DIVIDENDS DECLARED	Jun. 30, 2014
DIVIDENDS DECLARED
DIVIDENDS DECLARED	11. DIVIDENDS DECLARED CIM Urban declared distributions to its partners of $16,100,000 prior to the Acquisition Date ($0.1685 per share of Common Stock, as converted). In addition, dividends of $59,286,000 ($27.975 per share of Common Stock) were paid to the PMC Commercial stockholders, which includes the $27.50 per share of Common Stock special dividend plus the $0.475 pro rata portion of PMC Commercial's regular quarterly cash dividend. On March 24, 2014, we declared a common share dividend of $0.05 per share of Common Stock and a preferred dividend of $0.0403 per share of preferred stock ($0.0285 per share of Common Stock as converted) which were paid on March 28, 2014. On April 28, 2014, we declared a dividend in the aggregate amount of $1,964,000 to the preferred stockholders ($0.0302 per share of preferred stock and $0.0215 per share of Common Stock, as converted) in connection with the conversion of shares of preferred stock to shares of Common Stock, which was paid on June 27, 2014. On June 12, 2014, we declared a common share dividend of $0.21875 per share of Common Stock which was paid on June 27, 2014.

FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2014

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability. The hierarchy for inputs used in measuring fair value is as follows:

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

        Level 2 Inputs—Observable inputs other than quoted prices in active markets for identical assets and liabilities

        Level 3 Inputs—Unobservable inputs

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on our consolidated balance sheets were as follows:

	June 30, 2014				December 31, 2013

	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Level
	(in thousands)
Assets:
Loans Receivable Subject to Credit Risk	$	153,254	$	153,362	$	—	$	—		3
SBA 7(a) loans receivable, subject to secured borrowings		40,065		40,302		—		—		3
Liabilities:
Secured borrowings—government guaranteed loans		40,234		40,234		—		—		3
Unsecured revolving lines of credit and revolving facility		288,700		288,700		164,000		164,000		3
Term note		20,000		20,000		—		—		3
Junior subordinated notes		24,871		24,871		—		—		3
Mortgages payable		227,498		234,292		231,105		231,250		3

Management's estimation of the fair value of our financial instruments is based on a Level 3 valuation in the fair value hierarchy established for disclosure of how a company values its financial instruments. In general, quoted market prices from active markets for the identical financial instrument (Level 1 inputs), if available, should be used to value a financial instrument. If quoted prices are not available for the identical financial instrument, then a determination should be made if Level 2 inputs are available. Level 2 inputs include quoted prices for similar financial instruments in active markets for identical or similar financial instruments in markets that are not active (i.e., markets in which there are few transactions for the financial instruments, the prices are not current, price quotations vary substantially, or in which little information is released publicly). There is limited reliable market information for our financial instruments and we utilize other methodologies for valuation purposes since there are no Level 1 or Level 2 determinations available. Accordingly, Level 3 inputs are used to measure fair value.

In general, estimates of fair value may differ from the carrying amounts of the financial assets and liabilities primarily as a result of the effects of discounting future cash flows. Considerable judgment is required to interpret market data and develop estimates of fair value. Accordingly, the estimates presented may not be indicative of the amounts we could realize in a current market exchange.

Loans Receivable Subject to Credit Risk—Loans receivable were initially recorded at estimated fair value at the Acquisition Date. Loans receivable originated subsequent to the Acquisition Date are recorded at cost upon origination and adjusted by net loan origination fees and discounts. In order to determine the estimated fair value of our loans receivable, we use a present value technique for the anticipated future cash flows using certain assumptions including discount rates ranging from 8.50% to 15.00%, prepayment speeds of 15.00% and potential credit deterioration ranging from 0% to 1.50%. Significant increases (decreases) in any of these inputs in isolation would result in significantly lower (higher) fair value measurements. In the absence of a readily ascertainable market value, the estimated value of our loans receivable will differ from the values that would be placed on the portfolio if a ready market for the loans receivable existed.

SBA 7(a) loans receivable, subject to secured borrowings—Represents the government guaranteed portion of loans which were sold with the proceeds received from the sale reflected as a liability on our consolidated balance sheet. There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal. In order to determine the estimated fair value of these loans receivable, we use a present value technique for the anticipated future cash flows taking into consideration the lack of credit risk using a prepayment rate of 15.00%.

Junior subordinated notes—The fair value of the junior subordinated notes is estimated based on a current interest rates available for debt instruments with similar terms. Discounted cash flow analysis is generally used to estimate the fair value of our junior subordinated notes. The rate used was 3.83% at June 30, 2014.

Secured borrowings—government guaranteed loans—The fair value of secured borrowings—government guaranteed loans approximates current market interest rates. Includes the unamortized deferred cash premiums collected on the sale of the government guaranteed portions of the related loans.

Revolving credit facility, unsecured revolving lines of credit and term note—The carrying amount is a reasonable estimation of fair value as the interest rate on the revolving credit facility and revolving lines of credit are variable and are at a current market interest rate. In addition, the term note and revolving credit facility are short-term.

Mortgage notes payable—The fair values of mortgage notes are estimated based on current interest rates available for debt instruments with similar terms. The fair value of our mortgages payable is sensitive to fluctuations in interest rates. Discounted cash flow analysis is generally used to estimate the fair value of our mortgages payable, using rates ranging from 4.10% to 4.35% at June 30, 2014 and 4.85% to 5.00% at December 31, 2013.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

RELATED-PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2014

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS

13. RELATED-PARTY TRANSACTIONS

CIM Urban REIT Management, LP (the "Management Company"), an affiliate of CIM Urban REIT, provides asset management services to CIM Urban. For these services, CIM Urban pays asset management fees to the Management Company, on a quarterly basis, in arrears. The fee is calculated as a percentage of the daily average gross fair value of our investments, as defined, as follows:

Daily Average Gross Fair Value of CIM Urban' Investments

Daily Average Gross Fair Value of CIM Urban' Investments				Quarterly Fee Percentage
From Greater of		To and Including		Quarterly Fee Percentage
(in thousands)
$	—	$	500,000		0.2500	%
	500,000		1,000,000		0.2375	%
	1,000,000		1,500,000		0.2250	%
	1,500,000		4,000,000		0.2125	%
	4,000,000		20,000,000		0.1000	%

The Management Company earned asset management fees of $5,798,000 and $5,431,000 for the three months ended June 30, 2014 and 2013, respectively and $11,479,000 and $10,840,000 for the six months ended June 30, 2014 and 2013, respectively. At June 30, 2014, and December 31, 2013, asset management fees of $5,898,000 and $5,426,000, respectively, were due to the Management Company.

CIM Management, Inc. and certain of its affiliates (collectively, the "CIM Management Entities"), all affiliates of CIM Urban REIT, provide property management, leasing, and development services to CIM Urban. The CIM Management Entities earned property management fees, which are included in rental and other property operating expenses, totaling $1,272,000 and $1,215,000 for the three months ended June 30, 2014 and 2013, respectively and $2,531,000 and $2,362,000 for the six months ended June 30, 2014 and 2013, respectively. CIM Urban also reimbursed the CIM Management Entities $1,749,000 and $955,000 during the three months ended June 30, 2014 and 2013, respectively and $3,793,000 and $2,344,000 during the six months ended June 30, 2014 and 2013, respectively, for the cost of on-site personnel incurred on behalf of CIM Urban, which is included in rental and other property operating expenses. The CIM Management Entities earned leasing commissions of $839,000 and $11,000 for the three months ended June 30, 2014 and 2013, respectively and $1,351,000 and $297,000 for the six months ended June 30, 2014 and 2013, respectively, which were capitalized to deferred charges. In addition, the CIM Management Entities earned development management fees of $157,000 and $158,000 for the three months ended June 30, 2014 and 2013, respectively and $244,000 and $294,000 for the six months ended June 30, 2014 and 2013, respectively, which were capitalized to investments in real estate.

At June 30, 2014 and December 31, 2013, fees payable and expense reimbursements due to the CIM Management Entities of $2,408,000 and $1,445,000, respectively, are included in due to related parties. Also included in due to related parties as of June 30, 2014, and December 31, 2013, is $(12,000) and $(64,000), respectively, due to (from) the CIM Management Entities and related parties. We have also entered into contracts with third-party property management companies.

Certain of these management companies also provide leasing and development management services, for which they are compensated in accordance with the agreements. Management fees incurred to third-party management companies related to the rental properties totaled $419,000 and $344,000 for the three months ended June 30, 2014 and 2013, respectively and $811,000 and $672,000 for the six months ended June 30, 2014 and 2013, respectively, which were included in rental and other property operating expenses.

On the Acquisition Date, pursuant to the terms of the Merger Agreement, CIM Commercial and its lending subsidiaries entered into the Master Services Agreement (the "Master Services Agreement") with CIM Service Provider, LLC (the "Manager") pursuant to which the Manager agrees to provide or arrange for other service providers to provide management and administration services to CIM Commercial and its subsidiaries following the Merger. Pursuant to the Master Services Agreement, CIM Commercial pays a base service fee (the "Base Service Fee") to the Manager equal to $1,000,000 per year (subject to an annual escalation by a specified inflation factor beginning on January 1, 2015), payable quarterly in arrears. The Base Service Fee began to accrue on the Acquisition Date and was pro-rated based on the number of days during the first quarter in which the Master Services Agreement was in effect. For the three and six months ended June 30, 2014, the Manager earned a Base Service Fee of $250,000 and $306,000, respectively. In addition, pursuant to the terms of the Master Services Agreement, the Manager may receive compensation for performing certain services for CIM Commercial and its subsidiaries that are not covered under the Base Service Fee. During the six months ended June 30, 2014, such services performed by the Manager included accounting, tax, reporting, internal audit, legal, compliance, risk management, IT, human resources and corporate communications. The Manager's compensation is based on the salaries and benefits of the employees of the Manager and/or its affiliates who performed these services (allocated based on the percentage of time spent on the affairs of CIM Commercial and its subsidiaries). For the three and six months ended June 30, 2014, we expensed $290,000 for such services. At June 30, 2014, $596,000 was due to the Manager.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2014

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

14. COMMITMENTS AND CONTINGENCIES

Loan Commitments—Commitments to extend credit are agreements to lend to a customer provided the terms established in the contract are met. Our outstanding loan commitments and approvals to fund loans were $26,200,000 at June 30, 2014, the majority of which were for prime-based loans to be originated by our SBA 7(a) subsidiary, the government guaranteed portion of which is intended to be sold. Commitments generally have fixed expiration dates. Since some commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements.

General—In connection with the ownership and operation of real estate properties, we have certain obligations for the payment of tenant improvement allowances and lease commissions in connection with new leases and renewals.

Employment Agreements—We have employment agreements with two of our executive officers. Under certain circumstances, as defined within the agreements, the agreements provide for (1) severance compensation or change in control payments to the executive officer in an amount equal to 2.99 times the average of the last three years annual compensation paid to the executive officer and (2) death and disability payments in an amount equal to two times and one time, respectively, the annual salary paid to the executive officer. In addition, to the extent the executive is employed by us on January 1, 2016 and such executive is not entitled to any disability, death or severance payments, the executive would receive restricted share awards as a retention bonus which would vest immediately upon grant. In aggregate, the executive officers would receive 105,000 share awards.

Litigation—REIT Redux, L.P. et al v. CIM Commercial, et al. On October 9, 2013, a putative class action and derivative lawsuit was filed in the Dallas County Court at Law No. 5 in Dallas County, Texas against and purportedly on behalf of CIM Commercial. The plaintiffs alleged, among other things, that the CIM Commercial board breached its fiduciary duties by approving and recommending the merger to the shareholders, failing to maximize value for the shareholders, engaging in bad faith and self-dealing by preferring transactions that further enriched the trust managers at the expense of the shareholders and conspiring to deprive the shareholders of their voting power and prerogatives. The complaint alleged that CIM Urban REIT aided, abetted and induced those breaches of fiduciary duty.

CIM Commercial and CIM Urban REIT entered into various agreements with the plaintiffs to settle their claims, which agreements were effective as of January 28, 2014 and were approved by the court on April 4, 2014 (the "Settlement Agreement"). Under the terms of the Settlement Agreement, the Manager entered into a trading plan (the "Trading Plan") designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934 to provide for the purchase of up to 550,000 shares of CIM Commercial Common Stock at prices up to $25.00 per share. The Trading Plan commenced on March 12, 2014 and will, in general, expire on the date that 550,000 shares of CIM Commercial Common Stock have been purchased or August 10, 2014, whichever is earlier. Pursuant to the Trading Plan, which expires on August 10, 2014, the Manager acquired approximately 248,000 shares of Common Stock through July 31, 2014. Additionally, CIM Commercial agreed to be responsible for providing and administering notice of the class action settlement to the members of the settlement class and pay for all reasonable costs incurred in providing such notice. As a result of the settlement, CIM Commercial agreed to payment of attorney's fees and expenses of plaintiffs' counsel of $772,000. In addition, pursuant to the terms of the Settlement Agreement, the Manager agreed to purchase up to 100,000 shares of CIM Commercial Common Stock owned by REIT Redux and its other "reporting persons", at a price of $25.00 per share, if requested by REIT Redux to do so at any time from July 10, 2014 until August 10, 2014. Pursuant to the request of REIT Redux, the Manager expects to complete the acquisition of the 100,000 shares in August 2014.

We are not currently involved in any other material litigation nor, to our knowledge, is any material litigation currently threatened against us, other than routine litigation arising in the ordinary course of business, most of which is expected to be covered by liability insurance. In the normal course of business we are periodically party to certain legal actions and proceedings involving matters that are generally incidental to our business. In management's opinion, the resolution of these legal actions and proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

SBA Related—If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced under the SBA 7(a) Program, the SBA may seek recovery of the principal loss related to the deficiency from us. With respect to the guaranteed portion of SBA loans that have been sold, the SBA will first honor its guarantee and then seek compensation from us in the event that a loss is deemed to be attributable to technical deficiencies. Based on historical experience, we do not expect that this contingency is probable to be asserted. However, if asserted, it could have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Environmental Matters—In connection with the ownership and operation of real estate properties, we may be potentially liable for costs and damages related to environmental matters, including asbestos-containing materials. We have not been notified by any governmental authority of any noncompliance, liability, or other claim in connection with any of the properties, and we are not aware of any other environmental condition with respect to any of the properties that management believes will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Rent Expense—The ground lease for a project provides for current annual rent of $437,000, payable quarterly, with increases on June 1, 2015, and every five years thereafter based on the greater of 15% or 50% of the increase in the Consumer Price Index during a five-year adjustment period. In addition, commencing on June 1, 2040 and June 1, 2065, the rent payable during the balance of the lease term shall be increased by an amount equal to 10% of the rent payable during the immediately preceding lease year. The lease term is through May 31, 2089. If the landlord decides to sell the leased property, we have the right of first refusal.

Rent expense under this lease, which includes straight line rent and amortization of acquired below-market ground lease, was $438,000 for the three months ended June 30, 2014 and 2013, respectively and $876,000 for the six months ended June 30, 2014 and 2013, respectively. We record rent expense on a straight line basis. Straight line rent liability of $10,450,000 and $9,863,000 is included in other liabilities in the accompanying consolidated balance sheets as of June 30, 2014 and December 31, 2013, respectively.

We lease office space in Dallas, Texas under a lease which expires in May 2018. For the three and six months ended June 30, 2014, rent expense under the lease was $49,000 and $65,000, respectively. Straight line rent liability of $33,000 is included in other liabilities in the accompanying consolidated balance sheet as of June 30, 2014.

Scheduled future noncancelable minimum lease payments at June 30, 2014 are as follows:

Years Ending December 31	(in thousands)

2014 (Six months ending December 31, 2014)	$	345
2015		616
2016		743
2017		749
2018		607
Thereafter		129,031


	$	132,091

FUTURE MINIMUM LEASE RENTALS

6 Months Ended

Jun. 30, 2014

FUTURE MINIMUM LEASE RENTALS

FUTURE MINIMUM LEASE RENTALS

15. FUTURE MINIMUM LEASE RENTALS

Future minimum rental revenues under long-term operating leases at June 30, 2014, excluding tenant reimbursements of certain costs, are summarized as follows:

Years Ending December 31	Governmental Tenants		Other Tenants		Total

	(in thousands)
2014 (Six months ending December 31, 2014)	$	29,019	$	42,666	$	71,685
2015		46,321		85,064		131,385
2016		43,517		80,066		123,583
2017		40,356		75,065		115,421
2018		39,057		52,595		91,652
Thereafter		172,747		218,261		391,008


	$	371,017	$	553,717	$	924,734

CONCENTRATIONS

6 Months Ended

Jun. 30, 2014

CONCENTRATIONS

CONCENTRATIONS

16. CONCENTRATIONS

Tenant Revenue Concentrations—Rental revenues from the U.S. General Services Administration and other government agencies (collectively, "Governmental Tenants"), which primarily occupy properties located in Washington, D.C., accounted for approximately 24.5%, and 27.4% of our rental and other property income for the three months ended June 30, 2014 and 2013, respectively and 25.1%, and 27.5% for the six months ended June 30, 2014 and 2013, respectively. At June 30, 2014, and December 31, 2013, $6,145,000 and $5,596,000, respectively, is due from Governmental Tenants (see Note 15).

Geographical Concentrations of Investments in Real Estate—As of June 30, 2014, and December 31, 2013, we owned 20 and 19 office properties, respectively, five multifamily properties, and three hotel properties, located in four states and Washington, D.C.

Our revenues concentration from properties for the periods ended June 30, 2014 and 2013, are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,

	2014			2013			2014			2013
California		60.2	%		57.3	%		60.3	%		57.3	%
North Carolina		6.1			6.6			5.6			6.5
Texas		7.7			8.2			7.7			8.1
New York		2.1			2.1			2.1			2.2
Washington, D.C.		23.9			25.8			24.3			25.9


		100.0	%		100.0	%		100.0	%		100.0	%

Our real estate investments concentration from properties as of June 30, 2014, and December 31, 2013, are as follows:



California	51.7	%	50.5	%
North Carolina	5.5		5.6
Texas	7.5		7.7
New York	3.6		3.7
Washington, D.C.	31.7		32.5


	100.0	%	100.0	%

Concentration of loans receivable—Substantially all of our interest income is generated from loans collateralized by hospitality properties. At June 30, 2014, our loans receivable were 94.4% concentrated in the hospitality industry. In addition, at June 30, 2014, 12.7% of our loans were collateralized by properties in Texas and 10.5% of our loans were collateralized by properties in Virginia. No other state had a concentration of 10.0% or greater of our loans receivable at June 30, 2014.

SEGMENT DISCLOSURE

6 Months Ended

Jun. 30, 2014

SEGMENT DISCLOSURE

SEGMENT DISCLOSURE

17. SEGMENT DISCLOSURE

In accordance with ASC Topic 280, Segment Reporting, our reportable segments consist of three types of commercial real estate properties, namely, office properties, hotel properties (which included an investment in a note receivable secured by a hotel property during the three and six months ended June 30, 2013) and multifamily properties, as well as a segment for our lending operations. Management internally evaluates the operating performance and financial results of the segments based on net operating income. We also have certain general and administrative level activities, including public company expenses, legal, accounting, tax preparation, that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in the notes to the audited consolidated financial statements of CIM Urban for the year ended December 31, 2013 included in our current report on Form 8-K/A filed on May 9, 2014.

We evaluate the performance of our segments based on net operating income for our real estate segment, defined as: rental and other property income and tenant reimbursements less property and related expenses, and excludes other nonproperty income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, and transaction costs. For the lending segment, we define net operating income as interest income net of interest expense and expense for back-office operations and general overhead expenses such as administration and accounting. The net operating income of our reportable segments for the three and six months ended June 30, 2014 and 2013, is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,

	2014		2013		2014(1)		2013
	(in thousands)
Office properties:
Revenues	$	45,181	$	44,137	$	88,455	$	87,597


Property expenses:
Operating		17,933		16,192		35,586		32,494
General and administrative		76		254		392		354


Total property expenses		18,009		16,446		35,978		32,848


Segment net operating income—office		27,172		27,691		52,477		54,749


Hotel properties:
Revenues		14,798		10,624		29,137		20,571


Property expenses:
Operating		9,923		7,125		19,769		13,653
General and administrative		36		83		73		162


Total property expenses		9,959		7,208		19,842		13,815


Segment net operating income—hotel		4,839		3,416		9,295		6,756


Multifamily properties:
Revenues		5,208		5,077		10,192		9,978


Property expenses:
Operating		2,583		1,915		4,670		3,806
General and administrative		54		35		79		42


Total property expenses		2,637		1,950		4,749		3,848


Segment net operating income—multifamily		2,571		3,127		5,443		6,130


Lending:
Revenues		6,271		—		7,797		—


Lending expenses:
Interest expense		635		—		897		—
General and administrative		1,253		—		1,658		—


Total lending expenses		1,888		—		2,555		—


Segment net operating income—lending		4,383		—		5,242		—


Total segment net operating income	$	38,965	$	34,234	$	72,457	$	67,635

(1): The lending segment operations are included for the period from the Acquisition Date to June 30, 2014.

A reconciliation of segment net operating income to net income for the three and six months ended June 30, 2014 and 2013, is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,

	2014			2013			2014			2013
	(in thousands)
Total segment net operating income	$	38,965		$	34,234		$	72,457		$	67,635
Interest		(4,304	)		(4,725	)		(8,259	)		(9,402	)
General and administrative		(2,191	)		(343	)		(2,587	)		(699	)
Asset management fees and other fees to related parties		(6,338	)		(5,431	)		(12,075	)		(10,840	)
Transaction costs		(32	)		(1,394	)		(500	)		(1,394	)
Depreciation and amortization		(17,286	)		(17,533	)		(33,915	)		(34,670	)


		8,814			4,808			15,121			10,630
Bargain purchase gain		—			—			4,918			—


Income before provision for income taxes		8,814			4,808			20,039			10,630
Provision for income taxes		(300	)		—			(308	)		—


Net income		8,514			4,808			19,731			10,630
Net income attributable to noncontrolling interests		(115	)		(113	)		(113	)		(109	)


Net income attributable to stockholders	$	8,399		$	4,695		$	19,618		$	10,521

The condensed assets for each of the segments as of June 30, 2014 and December 31, 2013, along with capital expenditures and originations for the six months ended June 30, 2014 and 2013, are as follows:

	June 30, 2014		December 31, 2013

	(in thousands)
Condensed assets:
Office properties	$	1,518,743	$	1,481,757
Hotel properties		174,898		174,263
Multifamily properties		171,283		173,985
Lending		204,933		—
Non-segment assets		2,841		4,472


Total assets	$	2,072,698	$	1,834,477

	Six Months Ended June 30,

	2014		2013
	(in thousands)
Capital expenditures(1):
Office properties	$	11,428	$	6,830
Hotel properties		721		1,504
Multifamily properties		429		827


Total capital expenditures		12,578		9,161


Originations		25,191		—


Total capital expenditures and originations	$	37,769	$	9,161

(1): Represents additions and improvements to real estate investments, excluding acquisitions.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2014

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Interim Financial Information

Principles of Consolidation

Investments in Real Estate


Buildings and improvements		15 - 40 years
Furniture, fixtures, and equipment		3 - 5 years
Tenant improvements		Shorter of the useful lives or the terms of the related leases

Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred.

Loans Receivable

Deferred Rent Receivable and Charges

Noncontrolling Interests

Noncontrolling Interests—Noncontrolling interests represent interests in the various properties not owned by us.

Consolidation Considerations for Our Investments in Real Estate

Use of Estimates

Reclassifications

Recently Issued Accounting Pronouncements

MERGER (Tables)

6 Months Ended

Jun. 30, 2014

Merger

Schedule of fair value of consideration transferred, based on market price of PMC Commercial shares on Acquisition Date

	(in thousands, except per share data)

PMC Commercial common stock outstanding		2,119
Equity consideration price per share of common stock	$	21.05


Fair value of the equity consideration		44,610
Payment in cash—special dividend		58,279


Total purchase price	$	102,889

Schedule of pro forma consolidated financial information

	Six Months Ended June 30,

	2014		2013
	(in thousands, except per share amounts)
Pro forma revenues	$	138,916	$	128,640
Pro forma net income	$	15,489	$	14,575
Pro forma basic earnings per share	$	0.16	$	0.15
Pro forma diluted earnings per share	$	0.16	$	0.15

PMC Commercial

Merger

Schedule of allocation of purchase price

	(in thousands)

Assets
Cash and cash equivalents	$	3,185
Loans receivable		207,140
Accounts receivable and interest receivable		755
Other assets		5,396
Intangible assets		2,957


Total assets acquired		219,433


Liabilities
Debt		99,849
Accounts payable and accrued expenses		7,396
Special dividend liability and dividend payable		59,286
Other liabilities		3,374


Total liabilities assumed		169,905


Net identifiable assets acquired		49,528
Bargain purchase gain		(4,918	)


Net purchase price	$	44,610

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2014

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of estimated useful lives of real estate investment assets


Buildings and improvements		15 - 40 years
Furniture, fixtures, and equipment		3 - 5 years
Tenant improvements		Shorter of the useful lives or the terms of the related leases

ACQUISITIONS (Tables) - Office building located in Los Angeles, CA

6 Months Ended

Jun. 30, 2014

Acquisitions

Schedule of acquisitions

Property	Asset Type				Purchase Price

					(in thousands)
4750 Wilshire Blvd., Los Angeles, CA	Office	April 18, 2014	1	143,000	$	44,936

Schedule of the fair value of the assets acquired and liabilities assumed

	2014 Acquisition

	(in thousands)
Land	$	16,633
Land improvements		348
Building and improvements		27,947
Tenant improvements		691
Acquired in-place leases(1)		1,087
Acquired below-market leases(2)		(1,770	)


Net assets acquired	$	44,936

(1): In-place leases have a weighted average amortization period of 5.0 years.
(2): Below-market leases have a weighted average amortization period of 5.0 years.

INVESTMENTS IN REAL ESTATE (Tables)

6 Months Ended

Jun. 30, 2014

INVESTMENTS IN REAL ESTATE

Schedule of investments in real estate

	June 30, 2014			December 31, 2013

	(in thousands)
Land	$	347,693		$	331,060
Land improvements		27,884			27,536
Buildings and improvements		1,486,103			1,454,854
Furniture, fixtures, and equipment		23,332			23,051
Tenant improvements		191,451			183,915
Work in progress		12,137			9,987


		2,088,600			2,030,403
Accumulated depreciation		(377,090	)		(348,238	)


Net investments in real estate	$	1,711,510		$	1,682,165

LOANS RECEIVABLE (Tables)

6 Months Ended

Jun. 30, 2014

LOANS RECEIVABLE

Schedule of loans receivable

	June 30, 2014

	(in thousands)
Commercial mortgage loans	$	120,153
SBA 7(a) loans, subject to secured borrowings		40,039
SBA 7(a) loans		32,998


Loans receivable		193,190
Deferred capitalized costs		129


Net loans receivable	$	193,319

Schedule of aging of loans receivable subject to credit risk

June 30, 2014	Commercial Mortgage Loans				SBA 7(a) Loans				Totals

	(dollars in thousands)
Current	$	119,326	99.3	%	$	32,836	99.5	%	$	152,162	99.4	%
Between 29 and 59 days delinquent		—	—			162	0.5			162	0.1
Between 60 and 89 days delinquent		—	—			—	—			—	—
Over 89 days delinquent		827	0.7			—	—			827	0.5


	$	120,153	100.0	%	$	32,998	100.0	%	$	153,151	100.0	%

Schedule of classification of loans receivable subject to credit risk

June 30, 2014	Commercial Mortgage Loans				SBA 7(a) Loans				Totals

	(dollars in thousands)
Satisfactory	$	116,527	97.0	%	$	32,368	98.1	%	$	148,895	97.2	%
OAEM		1,947	1.6			—	—			1,947	1.3
Substandard		849	0.7			539	1.6			1,388	0.9
Doubtful		830	0.7			91	0.3			921	0.6


	$	120,153	100.0	%	$	32,998	100.0	%	$	153,151	100.0	%

OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2014

OTHER INTANGIBLE ASSETS

Schedule of intangible assets and liabilities and related accumulated amortization and accretion

	Assets																				Liabilities

June 30, 2014	Acquired Above-Market Leases			Acquired In-Place Leases			Tax Abatement			Advance Bookings			Franchise Affiliation Fee			Acquired Below-Market Ground Lease			Trade-Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	8,017		$	80,732		$	4,273		$	8,329		$	3,936		$	11,685		$	2,957	$	(63,093	)
Accumulated amortization		(7,487	)		(74,662	)		(1,496	)		(8,273	)		(2,785	)		(1,212	)		—		53,868


	$	530		$	6,070		$	2,777		$	56		$	1,151		$	10,473		$	2,957	$	(9,225	)




Average useful life (in years)		4			6			8			3			10			84			Indefinite		6

	Assets																		Liabilities

December 31, 2013	Acquired Above-Market Leases			Acquired In-Place Leases			Tax Abatement			Advance Bookings			Franchise Affiliation Fee			Acquired Below-Market Ground Lease			Acquired Below-Market Leases
	(in thousands)
Gross balance	$	8,017		$	79,645		$	4,273		$	8,329		$	3,936		$	11,685		$	(61,323	)
Accumulated amortization		(7,052	)		(73,463	)		(1,220	)		(8,139	)		(2,587	)		(1,142	)		52,523


	$	965		$	6,182		$	3,053		$	190		$	1,349		$	10,543		$	(8,800	)




Average useful life (in years)		4			5			8			3			10			84			6

Schedule of future amortization and accretion of acquisition related intangible assets and liabilities

	Assets												Liabilities

Years Ending December 31,	Acquired Above-Market Leases		Acquired In-Place Leases		Tax Abatement		Advance Bookings		Franchise Affiliation Fee		Acquired Below-Market Ground Lease		Acquired Below-Market Leases
	(in thousands)
2014 (Six months ending December 31, 2014)	$	167	$	1,084	$	275	$	56	$	196	$	70	$	(1,246	)
2015		241		1,606		551		—		394		140		(2,435	)
2016		88		1,111		551		—		394		140		(2,368	)
2017		26		665		551		—		167		140		(2,261	)
2018		8		415		551		—		—		140		(824	)
Thereafter		—		1,189		298		—		—		9,843		(91	)


	$	530	$	6,070	$	2,777	$	56	$	1,151	$	10,473	$	(9,225	)

DEBT (Tables)

6 Months Ended

Jun. 30, 2014

DEBT

Schedule of debt

	June 30, 2014			December 31, 2013

	(in thousands)
Mortgage loan with a fixed interest rate of 7.66% per annum, with monthly payments of principal and interest. The loan has a 20-year amortization schedule with a $25,324,000 balance due on December 1, 2015. The loan is nonrecourse.	$	27,537		$	28,262
Mortgage loan with a fixed interest rate of 4.50% per annum, with monthly payments of interest only for 10 years, and payments of interest and principal starting in February 2022. The loan has a $42,008,000 balance due on January 5, 2027. The loan is nonrecourse.		46,000			46,000
Mortgage loan with a fixed interest rate of 5.56% per annum, with monthly payments of principal and interest. The loan has a 10-year amortization schedule with a $12,288,000 balance due on July 1, 2015. The loan is nonrecourse.		12,590			12,737
Mortgage loan with a fixed interest rate of 6.65% per annum, with monthly payments of principal and interest. The loan has a 25-year amortization schedule with a $21,136,000 balance due on July 15, 2018. The loan is nonrecourse.		33,432			34,755
Mortgage loan with a fixed interest rate of 5.06% per annum, with monthly payments of principal and interest, and a balance of $33,068,000 due on September 1, 2015. The loan is nonrecourse.		34,161			34,583
Mortgage loans with a fixed interest rate of 5.39% per annum, with monthly payments of principal and interest, and a balance of $35,695,000 due on March 1, 2021. The loans are nonrecourse.		40,850			41,170
Mortgage loan with a fixed interest rate of 5.18% per annum, with monthly payments of principal and interest, and a balance of $26,232,000 due on June 5, 2021. The loan is nonrecourse.		30,555			30,812


		225,125			228,319
Premiums and discounts on assumed mortgages		2,373			2,786


Total Mortgages Payable		227,498			231,105


Secured borrowing principal on loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.99%		32,057			—
Secured borrowing principal on loans sold for excess spread, variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.58%		5,153			—


		37,210			—
Premiums on loans sold for a premium and excess spread		3,024			—


Total Secured borrowings—government guaranteed loans		40,234			—


Junior subordinated notes with a variable interest rate which resets quarterly based on the 90-day LIBOR plus 3.25%, with quarterly interest payments due. Balance due at maturity on March 30, 2035.		27,070			—
Term note with a fixed interest rate of 2.74%, principal and interest due at maturity on September 10, 2014.		20,000			—
Unsecured revolving line of credit with variable interest rate of prime less 50 basis points, with monthly interest payments due. Matures June 30, 2015.		700			—
Unsecured revolving lines of credit		288,000			164,000


		335,770			164,000
Discount on junior subordinated notes		(2,199	)		—


Total Other		333,571			164,000


Total Debt	$	601,303		$	395,105

Schedule of principal payments on, and estimated amortization of debt (face value)

Years Ending December 31,	Secured Borrowings Principal(1)		Mortgages Payable		All Other Principal(2)		Total

	(in thousands)
2014 (Six months ending December 31, 2014)	$	575	$	3,278	$	208,000	$	211,853
2015		1,180		77,055		700		78,935
2016		1,220		4,354		100,000		105,574
2017		1,263		4,642		—		5,905
2018		1,309		24,300		—		25,609
Thereafter		31,663		111,496		27,070		170,229


	$	37,210	$	225,125	$	335,770	$	598,105

(1): Principal payments are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled principal payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and/or loan liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans.
(2): Represents the revolving credit facility, term note, junior subordinated notes, and unsecured revolving lines of credit.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

STOCK-BASED COMPENSATION PLANS (Tables)

6 Months Ended

Jun. 30, 2014

STOCK BASED COMPENSATION PLANS

Schedule of assumptions used in valuation of fair value of options

Assumptions

Expected term (years)	3.0
Risk-free interest rate	0.94	%
Expected dividend yield	3.78	%
Expected volatility	9.37	%
Expected forfeiture rate	1.0	%

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2014

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of estimated fair values of financial instruments not recorded at fair value on consolidated balance sheets

	June 30, 2014				December 31, 2013

	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Level
	(in thousands)
Assets:
Loans Receivable Subject to Credit Risk	$	153,254	$	153,362	$	—	$	—		3
SBA 7(a) loans receivable, subject to secured borrowings		40,065		40,302		—		—		3
Liabilities:
Secured borrowings—government guaranteed loans		40,234		40,234		—		—		3
Unsecured revolving lines of credit and revolving facility		288,700		288,700		164,000		164,000		3
Term note		20,000		20,000		—		—		3
Junior subordinated notes		24,871		24,871		—		—		3
Mortgages payable		227,498		234,292		231,105		231,250		3

RELATED-PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2014

RELATED-PARTY TRANSACTIONS

Schedule of calculation of asset management fees payable to related party as a percentage of the daily average gross fair value of investments

Daily Average Gross Fair Value of CIM Urban' Investments

Daily Average Gross Fair Value of CIM Urban' Investments				Quarterly Fee Percentage
From Greater of		To and Including		Quarterly Fee Percentage
(in thousands)
$	—	$	500,000		0.2500	%
	500,000		1,000,000		0.2375	%
	1,000,000		1,500,000		0.2250	%
	1,500,000		4,000,000		0.2125	%
	4,000,000		20,000,000		0.1000	%

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2014

COMMITMENTS AND CONTINGENCIES.

Schedule of future noncancelable minimum lease payments

Years Ending December 31	(in thousands)

2014 (Six months ending December 31, 2014)	$	345
2015		616
2016		743
2017		749
2018		607
Thereafter		129,031


	$	132,091

FUTURE MINIMUM LEASE RENTALS (Tables)

6 Months Ended

Jun. 30, 2014

FUTURE MINIMUM LEASE RENTALS

Summary of future minimum rental revenues under long-term operating leases excluding tenant reimbursements of certain costs

Years Ending December 31	Governmental Tenants		Other Tenants		Total

	(in thousands)
2014 (Six months ending December 31, 2014)	$	29,019	$	42,666	$	71,685
2015		46,321		85,064		131,385
2016		43,517		80,066		123,583
2017		40,356		75,065		115,421
2018		39,057		52,595		91,652
Thereafter		172,747		218,261		391,008


	$	371,017	$	553,717	$	924,734

CONCENTRATIONS (Tables)

6 Months Ended

Jun. 30, 2014

Revenues

Concentrations

Schedule of concentration risk from properties

	Three Months Ended June 30,						Six Months Ended June 30,

	2014			2013			2014			2013
California		60.2	%		57.3	%		60.3	%		57.3	%
North Carolina		6.1			6.6			5.6			6.5
Texas		7.7			8.2			7.7			8.1
New York		2.1			2.1			2.1			2.2
Washington, D.C.		23.9			25.8			24.3			25.9


		100.0	%		100.0	%		100.0	%		100.0	%

Real estate investments

Concentrations

Schedule of concentration risk from properties



California	51.7	%	50.5	%
North Carolina	5.5		5.6
Texas	7.5		7.7
New York	3.6		3.7
Washington, D.C.	31.7		32.5


	100.0	%	100.0	%

SEGMENT DISCLOSURE (Tables)

6 Months Ended

Jun. 30, 2014

SEGMENT DISCLOSURE

Schedule of net operating income of reportable segments

	Three Months Ended June 30,				Six Months Ended June 30,

	2014		2013		2014(1)		2013
	(in thousands)
Office properties:
Revenues	$	45,181	$	44,137	$	88,455	$	87,597


Property expenses:
Operating		17,933		16,192		35,586		32,494
General and administrative		76		254		392		354


Total property expenses		18,009		16,446		35,978		32,848


Segment net operating income—office		27,172		27,691		52,477		54,749


Hotel properties:
Revenues		14,798		10,624		29,137		20,571


Property expenses:
Operating		9,923		7,125		19,769		13,653
General and administrative		36		83		73		162


Total property expenses		9,959		7,208		19,842		13,815


Segment net operating income—hotel		4,839		3,416		9,295		6,756


Multifamily properties:
Revenues		5,208		5,077		10,192		9,978


Property expenses:
Operating		2,583		1,915		4,670		3,806
General and administrative		54		35		79		42


Total property expenses		2,637		1,950		4,749		3,848


Segment net operating income—multifamily		2,571		3,127		5,443		6,130


Lending:
Revenues		6,271		—		7,797		—


Lending expenses:
Interest expense		635		—		897		—
General and administrative		1,253		—		1,658		—


Total lending expenses		1,888		—		2,555		—


Segment net operating income—lending		4,383		—		5,242		—


Total segment net operating income	$	38,965	$	34,234	$	72,457	$	67,635

(1): The lending segment operations are included for the period from the Acquisition Date to June 30, 2014.

Schedule of reconciliation of segment net operating income to net income attributable to stockholders

	Three Months Ended June 30,						Six Months Ended June 30,

	2014			2013			2014			2013
	(in thousands)
Total segment net operating income	$	38,965		$	34,234		$	72,457		$	67,635
Interest		(4,304	)		(4,725	)		(8,259	)		(9,402	)
General and administrative		(2,191	)		(343	)		(2,587	)		(699	)
Asset management fees and other fees to related parties		(6,338	)		(5,431	)		(12,075	)		(10,840	)
Transaction costs		(32	)		(1,394	)		(500	)		(1,394	)
Depreciation and amortization		(17,286	)		(17,533	)		(33,915	)		(34,670	)


		8,814			4,808			15,121			10,630
Bargain purchase gain		—			—			4,918			—


Income before provision for income taxes		8,814			4,808			20,039			10,630
Provision for income taxes		(300	)		—			(308	)		—


Net income		8,514			4,808			19,731			10,630
Net income attributable to noncontrolling interests		(115	)		(113	)		(113	)		(109	)


Net income attributable to stockholders	$	8,399		$	4,695		$	19,618		$	10,521

Schedule of reconciliation of condensed assets of segments to consolidated total assets

	June 30, 2014		December 31, 2013

	(in thousands)
Condensed assets:
Office properties	$	1,518,743	$	1,481,757
Hotel properties		174,898		174,263
Multifamily properties		171,283		173,985
Lending		204,933		—
Non-segment assets		2,841		4,472


Total assets	$	2,072,698	$	1,834,477

Schedule of capital expenditures and originations

	Six Months Ended June 30,

	2014		2013
	(in thousands)
Capital expenditures(1):
Office properties	$	11,428	$	6,830
Hotel properties		721		1,504
Multifamily properties		429		827


Total capital expenditures		12,578		9,161


Originations		25,191		—


Total capital expenditures and originations	$	37,769	$	9,161

(1): Represents additions and improvements to real estate investments, excluding acquisitions.

ORGANIZATION AND OPERATIONS (Details)	Apr. 28, 2014 $ / shares shares	Jun. 30, 2014 $ / shares shares	Dec. 31, 2013 $ / shares shares
Organization and operations
Common shares authorized before amendment	100,000,000
Common shares authorized	1,000,000,000	200,000,000	20,000,000
Common shares authorized before amendment with effect to the reverse stock split	20,000,000
Common shares authorized with effect to the reverse stock split	200,000,000
Reverse stock split ratio	0.2
Common shares, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001	$ 0.05

MERGER (Details) $ / shares in Units, $ in Thousands			6 Months Ended
MERGER (Details) $ / shares in Units, $ in Thousands	Apr. 28, 2014	Mar. 11, 2014 USD ($) $ / shares shares	Jun. 30, 2014 shares	Mar. 25, 2014 $ / shares	Dec. 31, 2013 shares
Merger
Treasury stock			107,265
Reverse stock split ratio	0.2
Consideration Transferred
Common stock outstanding			97,581,598		4,400,000
Common Stock
Merger
Shares issued		2,119,244	2,119,244
CIM Urban REIT
Merger
Shares issued		2,226,509
Number of shares to be issued on conversion of preferred stock expressed as a percentage of outstanding stock		97.80%
CIM Urban REIT \| Preferred Stock
Merger
Shares issued		65,028,571
PMC Commercial \| CIM Urban REIT
Merger
Treasury stock		107,265
Number of shares to be issued on conversion of each preferred stock		1.4
Number of shares to be issued on conversion of preferred stock		91,039,999
Special cash dividend issued to shareholders of record at the close of the business day prior to the closing of transactions (in dollars per share) \| $ / shares				$ 27.50
Consideration Transferred
Common stock outstanding		2,119,000
Equity consideration price per share of common stock (in dollars per share) \| $ / shares		$ 21.05
Fair value of the equity consideration \| $		$ 44,610
Payment in cash - special dividend \| $		58,279
Total purchase price \| $		$ 102,889
PMC Commercial \| CIM Urban REIT \| Common Stock
Merger
Shares issued		4,400,000
PMC Commercial \| CIM Urban REIT \| Preferred Stock
Merger
Reverse stock split ratio		0.2

MERGER (Details 2) - USD ($)		6 Months Ended
MERGER (Details 2) - USD ($)	Mar. 11, 2014	Jun. 30, 2014	Jun. 30, 2013
Liabilities
Bargain purchase gain		$ (4,918,000)
PMC Commercial \| CIM Urban
Assets
Cash and cash equivalents	$ 3,185,000
Loans receivable	207,140,000
Accounts receivable and interest receivable	755,000
Other assets	5,396,000
Intangible assets	2,957,000
Total assets acquired	219,433,000
Liabilities
Debt	99,849,000
Accounts payable and accrued expenses	7,396,000
Special dividend liability and dividend payable	59,286,000
Other liabilities	3,374,000
Total liabilities assumed	169,905,000
Net identifiable assets acquired	49,528,000
Bargain purchase gain	(4,918,000)
Net purchase price	$ 44,610,000
Pro Forma Financial Information
Pro forma revenues		138,916,000	$ 128,640,000
Pro forma net income		$ 15,489,000	$ 14,575,000
Pro forma basic earnings per share (in dollars per share)		$ 0.16	$ 0.15
Pro forma diluted earnings per share (in dollars per share)		$ 0.16	$ 0.15
transaction costs		$ 3,046,000

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Investments in Real Estate
Impairment of long-lived assets	$ 0	$ 0	$ 0	$ 0
Buildings and improvements \| Minimum
Investments in Real Estate
Estimated useful lives			15 years
Buildings and improvements \| Maximum
Investments in Real Estate
Estimated useful lives			40 years
Furniture, fixtures, and equipment \| Minimum
Investments in Real Estate
Estimated useful lives			3 years
Furniture, fixtures, and equipment \| Maximum
Investments in Real Estate
Estimated useful lives			5 years

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)		3 Months Ended	6 Months Ended
	Mar. 11, 2014	Jun. 30, 2013	Jun. 30, 2013
PMC Commercial
Loans receivable
Discount on acquisition	$ 33,907,000
First mortgage note secured by hotel located near Los Angeles Airport \| CIM Urban
Loans receivable
Interest income and fees		$ 0	$ 316,000

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($)	Jun. 30, 2014	Dec. 31, 2013
Deferred Rent Receivable and Charges
Deferred rent receivable	$ 50,971,000	$ 49,543,000
Deferred loan costs, gross	6,315,000	5,748,000
Deferred loan costs, accumulated amortization	4,272,000	3,620,000
Deferred leasing costs, gross	60,368,000	55,826,000
Deferred leasing costs, accumulated amortization	$ 23,423,000	$ 19,891,000

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
As previously reported \| Hotel revenues
Reclassifications
Hotel revenues	$ 10,555,000	$ 20,132,000
As previously reported \| Other income
Reclassifications
Other income	1,266,000	1,640,000
As previously reported \| Hotel operating expenses
Reclassifications
Hotel operating expenses	7,042,000	13,481,000
Reclassifications to conform to current year presentation \| Rental and other property income
Reclassifications
Hotel revenues	10,555,000	20,132,000
Reclassifications to conform to current year presentation \| Interest and other income
Reclassifications
Other income	1,266,000	1,640,000
Reclassifications to conform to current year presentation \| Other property operating expenses
Reclassifications
Hotel operating expenses	$ 7,042,000	$ 13,481,000

ACQUISITIONS (Details) $ in Thousands		6 Months Ended	12 Months Ended
ACQUISITIONS (Details) $ in Thousands	Apr. 18, 2014 USD ($) ft² item	Jun. 30, 2014 USD ($)	Dec. 31, 2013
In-place leases
Fair value of the assets acquired and liabilities assumed
Weighted average amortization period		6 years	5 years
Office building located in Los Angeles, CA
Acquisitions
Fee-simple interest acquired (as a percent)		100.00%
Number of Buildings \| item	1
Rentable Square Feet \| ft²	143,000
Purchase Price	$ 44,936
Fair value of the assets acquired and liabilities assumed
Total assets acquired		$ 44,936
Acquisition related expenses		32
Office building located in Los Angeles, CA \| In-place leases
Fair value of the assets acquired and liabilities assumed
Intangible assets		$ 1,087
Weighted average amortization period		5 years
Office building located in Los Angeles, CA \| Below-market leases
Fair value of the assets acquired and liabilities assumed
Intangible assets		$ (1,770)
Weighted average amortization period		5 years
Office building located in Los Angeles, CA \| Land
Fair value of the assets acquired and liabilities assumed
Property, plant and equipment		$ 16,633
Office building located in Los Angeles, CA \| Land improvements
Fair value of the assets acquired and liabilities assumed
Property, plant and equipment		348
Office building located in Los Angeles, CA \| Building and improvements
Fair value of the assets acquired and liabilities assumed
Property, plant and equipment		27,947
Office building located in Los Angeles, CA \| Tenant improvements
Fair value of the assets acquired and liabilities assumed
Property, plant and equipment		$ 691

INVESTMENTS IN REAL ESTATE (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013
INVESTMENTS IN REAL ESTATE
Land	$ 347,693	$ 331,060
Land improvements	27,884	27,536
Buildings and improvements	1,486,103	1,454,854
Furniture, fixtures, and equipment	23,332	23,051
Tenant improvements	191,451	183,915
Work in progress	12,137	9,987
Investments in real estate, gross	2,088,600	2,030,403
Accumulated depreciation	(377,090)	(348,238)
Net investments in real estate	$ 1,711,510	$ 1,682,165

LOANS RECEIVABLE (Details) $ in Thousands	Jun. 30, 2014 USD ($)
Loans receivable
Loans receivable	$ 193,190
Deferred capitalized costs	129
Net loans receivable	193,319
Commercial mortgage loans
Loans receivable
Net loans receivable	120,153
SBA 7(a) loans, subject to secured borrowings
Loans receivable
Net loans receivable	40,039
SBA 7(a) loans
Loans receivable
Net loans receivable	$ 32,998

LOANS RECEIVABLE (Details 2) $ in Thousands	Jun. 30, 2014 USD ($)
Amount
Current	$ 152,162
Between 29 and 59 days delinquent	162
Over 89 days delinquent	827
Total	$ 153,151
%
Current (as a percent)	99.40%
Between 29 and 59 days delinquent (as a percent)	0.10%
Over 89 days delinquent (as a percent)	0.50%
Total (as a percent)	100.00%
Commercial Mortgage Loans
Amount
Current	$ 119,326
Over 89 days delinquent	827
Total	$ 120,153
%
Current (as a percent)	99.30%
Over 89 days delinquent (as a percent)	0.70%
Total (as a percent)	100.00%
SBA 7(a) Loans
Amount
Current	$ 32,836
Between 29 and 59 days delinquent	162
Total	$ 32,998
%
Current (as a percent)	99.50%
Between 29 and 59 days delinquent (as a percent)	0.50%
Total (as a percent)	100.00%

LOANS RECEIVABLE (Details 3) $ in Thousands	6 Months Ended
LOANS RECEIVABLE (Details 3) $ in Thousands	Jun. 30, 2014 USD ($) item
Classification of loans receivable subject to credit risk
Number of categories of specific identification loans \| item	3
Amount
Total	$ 153,151
%
Total loans (as a percent)	100.00%
Satisfactory
Amount
Total	$ 148,895
%
Total loans (as a percent)	97.20%
OAEM
Amount
Total	$ 1,947
%
Total loans (as a percent)	1.30%
Substandard
Amount
Total	$ 1,388
%
Total loans (as a percent)	0.90%
Doubtful
Amount
Total	$ 921
%
Total loans (as a percent)	0.60%
Commercial Mortgage Loans
Amount
Total	$ 120,153
%
Total loans (as a percent)	100.00%
Commercial Mortgage Loans \| Satisfactory
Amount
Total	$ 116,527
%
Total loans (as a percent)	97.00%
Commercial Mortgage Loans \| OAEM
Amount
Total	$ 1,947
%
Total loans (as a percent)	1.60%
Commercial Mortgage Loans \| Substandard
Amount
Total	$ 849
%
Total loans (as a percent)	0.70%
Commercial Mortgage Loans \| Doubtful
Amount
Total	$ 830
%
Total loans (as a percent)	0.70%
SBA 7(a) Loans
Amount
Total	$ 32,998
%
Total loans (as a percent)	100.00%
SBA 7(a) Loans \| Satisfactory
Amount
Total	$ 32,368
%
Total loans (as a percent)	98.10%
SBA 7(a) Loans \| Substandard
Amount
Total	$ 539
%
Total loans (as a percent)	1.60%
SBA 7(a) Loans \| Doubtful
Amount
Total	$ 91
%
Total loans (as a percent)	0.30%

OTHER INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
OTHER INTANGIBLE ASSETS (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Intangible assets and liabilities
Amortization expenses	$ 17,286,000	$ 17,533,000	$ 33,915,000	$ 34,670,000
Intangible liabilities
Net	(9,225,000)		(9,225,000)		$ (8,800,000)
Future accretion of acquisition related intangible liabilities
Net	(9,225,000)		(9,225,000)		(8,800,000)
Acquired Below-Market Leases
Intangible assets and liabilities
Amortization expenses	697,000	796,000	1,345,000	1,592,000
Intangible liabilities
Gross balance	(63,093,000)		(63,093,000)		(61,323,000)
Accumulated amortization	53,868,000		53,868,000		52,523,000
Net	(9,225,000)		$ (9,225,000)		$ (8,800,000)
Average useful life			6 years		6 years
Future accretion of acquisition related intangible liabilities
2014 (Six months ending December 31, 2014)	(1,246,000)		$ (1,246,000)
2015	(2,435,000)		(2,435,000)
2016	(2,368,000)		(2,368,000)
2017	(2,261,000)		(2,261,000)
2018	(824,000)		(824,000)
Thereafter	(91,000)		(91,000)
Net	(9,225,000)		(9,225,000)		$ (8,800,000)
Trade-Name and License
Intangible assets
Gross balance	2,957,000		2,957,000
Net	2,957,000		2,957,000
Acquired Above-Market Leases
Intangible assets and liabilities
Amortization expenses	98,000	196,000	435,000	396,000
Intangible assets
Gross balance	8,017,000		8,017,000		8,017,000
Accumulated amortization	(7,487,000)		(7,487,000)		(7,052,000)
Net	530,000		$ 530,000		$ 965,000
Average useful life			4 years		4 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	167,000		$ 167,000
2015	241,000		241,000
2016	88,000		88,000
2017	26,000		26,000
2018	8,000		8,000
Net	530,000		530,000		$ 965,000
Acquired In-Place Leases
Intangible assets and liabilities
Amortization expenses	587,000	927,000	1,199,000	1,874,000
Intangible assets
Gross balance	80,732,000		80,732,000		79,645,000
Accumulated amortization	(74,662,000)		(74,662,000)		(73,463,000)
Net	6,070,000		$ 6,070,000		$ 6,182,000
Average useful life			6 years		5 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	1,084,000		$ 1,084,000
2015	1,606,000		1,606,000
2016	1,111,000		1,111,000
2017	665,000		665,000
2018	415,000		415,000
Thereafter	1,189,000		1,189,000
Net	6,070,000		6,070,000		$ 6,182,000
Tax Abatement
Intangible assets and liabilities
Amortization expenses	138,000	138,000	276,000	276,000
Intangible assets
Gross balance	4,273,000		4,273,000		4,273,000
Accumulated amortization	(1,496,000)		(1,496,000)		(1,220,000)
Net	2,777,000		$ 2,777,000		$ 3,053,000
Average useful life			8 years		8 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	275,000		$ 275,000
2015	551,000		551,000
2016	551,000		551,000
2017	551,000		551,000
2018	551,000		551,000
Thereafter	298,000		298,000
Net	2,777,000		2,777,000		$ 3,053,000
Advance Bookings
Intangible assets and liabilities
Amortization expenses	67,000	0	134,000	0
Intangible assets
Gross balance	8,329,000		8,329,000		8,329,000
Accumulated amortization	(8,273,000)		(8,273,000)		(8,139,000)
Net	56,000		$ 56,000		$ 190,000
Average useful life			3 years		3 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	56,000		$ 56,000
Net	56,000		56,000		$ 190,000
Franchise Affiliation Fee
Intangible assets and liabilities
Amortization expenses	99,000	99,000	198,000	198,000
Intangible assets
Gross balance	3,936,000		3,936,000		3,936,000
Accumulated amortization	(2,785,000)		(2,785,000)		(2,587,000)
Net	1,151,000		$ 1,151,000		$ 1,349,000
Average useful life			10 years		10 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	196,000		$ 196,000
2015	394,000		394,000
2016	394,000		394,000
2017	167,000		167,000
Net	1,151,000		1,151,000		$ 1,349,000
Acquired Below-Market Ground Lease
Intangible assets and liabilities
Amortization expenses	35,000	$ 35,000	70,000	$ 70,000
Intangible assets
Gross balance	11,685,000		11,685,000		11,685,000
Accumulated amortization	(1,212,000)		(1,212,000)		(1,142,000)
Net	10,473,000		$ 10,473,000		$ 10,543,000
Average useful life			84 years		84 years
Future amortization of acquisition related intangible assets
2014 (Six months ending December 31, 2014)	70,000		$ 70,000
2015	140,000		140,000
2016	140,000		140,000
2017	140,000		140,000
2018	140,000		140,000
Thereafter	9,843,000		9,843,000
Net	$ 10,473,000		$ 10,473,000		$ 10,543,000

DEBT (Details) - USD ($)	6 Months Ended	12 Months Ended
DEBT (Details) - USD ($)	Jun. 30, 2014	Dec. 31, 2013
Debt
Gross debt	$ 598,105,000
Total Debt	601,303,000	$ 395,105,000
Term note with a fixed interest rate of 2.74%, principal and interest due at maturity on September 10, 2014
Debt
Gross debt	$ 20,000,000
Fixed interest rate (as a percent)	2.74%
Face amount	$ 20,000,000
Mortgages Payable
Debt
Gross debt	225,125,000	228,319,000
Premiums and discounts on debt instruments	2,373,000	2,786,000
Mortgage loan with a fixed interest of 7.66% per annum, due on December 1, 2015
Debt
Gross debt	$ 27,537,000	$ 28,262,000
Fixed interest rate (as a percent)	7.66%	7.66%
Period of amortization schedule	20 years	20 years
Amount of balance due on maturity	$ 25,324,000	$ 25,324,000
Mortgage loan with a fixed interest of 4.50% per annum, due on January 5, 2027
Debt
Gross debt	$ 46,000,000	$ 46,000,000
Fixed interest rate (as a percent)	4.50%	4.50%
Period of monthly interest only payments	10 years	10 years
Amount of balance due on maturity	$ 42,008,000	$ 42,008,000
Mortgage loan with a fixed interest of 5.56% per annum, due on July 1, 2015
Debt
Gross debt	$ 12,590,000	$ 12,737,000
Fixed interest rate (as a percent)	5.56%	5.56%
Period of amortization schedule	10 years	10 years
Amount of balance due on maturity	$ 12,288,000	$ 12,288,000
Mortgage loan with a fixed interest of 6.65% per annum, due on July 15, 2018
Debt
Gross debt	$ 33,432,000	$ 34,755,000
Fixed interest rate (as a percent)	6.65%	6.65%
Period of amortization schedule	25 years	25 years
Amount of balance due on maturity	$ 21,136,000	$ 21,136,000
Mortgage loan with a fixed interest of 5.06% per annum, due on September 1, 2015
Debt
Gross debt	$ 34,161,000	$ 34,583,000
Fixed interest rate (as a percent)	5.06%	5.06%
Amount of balance due on maturity	$ 33,068,000	$ 33,068,000
Mortgage loan with a fixed interest of 5.39% per annum, due on March 1, 2021
Debt
Gross debt	$ 40,850,000	$ 41,170,000
Fixed interest rate (as a percent)	5.39%	5.39%
Amount of balance due on maturity	$ 35,695,000	$ 35,695,000
Mortgage loan with a fixed interest of 5.18% per annum, due on June 5, 2021
Debt
Gross debt	$ 30,555,000	$ 30,812,000
Fixed interest rate (as a percent)	5.18%	5.18%
Amount of balance due on maturity	$ 26,232,000	$ 26,232,000
Secured borrowings - government guaranteed loans
Debt
Gross debt	37,210,000
Premiums and discounts on debt instruments	3,024,000
Total Debt	40,234,000
Secured borrowing principal on loans sold for a premium and excess spread - variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.99%
Debt
Gross debt	$ 32,057,000
Weighted average coupon rate (as a percent)	3.99%
Secured borrowing principal on loans sold for a premium and excess spread - variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.99% \| Prime rate
Debt
Variable rate basis	prime rate
Secured borrowing principal on loans sold for excess spread, variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.58%
Debt
Gross debt	$ 5,153,000
Weighted average coupon rate (as a percent)	1.58%
Secured borrowing principal on loans sold for excess spread, variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.58% \| Prime rate
Debt
Variable rate basis	prime rate
Other debt
Debt
Gross debt	$ 335,770,000	164,000,000
Premiums and discounts on debt instruments	(2,199,000)
Junior subordinated notes with a variable interest rate which resets quarterly based on the 90 day LIBOR plus 3.25%, with quarterly interest payments due. Balance due at maturity on March 30, 2035
Debt
Gross debt	$ 27,070,000
Junior subordinated notes with a variable interest rate which resets quarterly based on the 90 day LIBOR plus 3.25%, with quarterly interest payments due. Balance due at maturity on March 30, 2035 \| 90-day LIBOR
Debt
Variable rate basis	90-day LIBOR
Interest rate margin (as a percent)	3.25%
Unsecured revolving line of credit with variable interest rate of prime less 50 basis points, with monthly interest payments due. Matures June 30, 2015
Debt
Gross debt	$ 700,000
Unsecured revolving line of credit with variable interest rate of prime less 50 basis points, with monthly interest payments due. Matures June 30, 2015 \| Prime rate
Debt
Variable rate basis	Prime
Reduction in variable rate (as a percent)	0.50%
Unsecured revolving lines of credit
Debt
Gross debt	$ 288,000,000	$ 164,000,000

DEBT (Details 2)			6 Months Ended
DEBT (Details 2)	Aug. 31, 2013 USD ($)	Feb. 29, 2012 USD ($)	Jun. 30, 2014 USD ($) item	Apr. 30, 2014 USD ($)	Dec. 31, 2013 USD ($)
Debt
Accrued interest and unused commitment fee payable			$ 1,155,000		$ 1,017,000
Principal payments on, and estimated amortization of debt
2014 (Six months ending December 31, 2014)			211,853,000
2015			78,935,000
2016			105,574,000
2017			5,905,000
2018			25,609,000
Thereafter			170,229,000
Total Debt			598,105,000
Term note
Debt
Principal amount of debt			20,000,000
Principal payments on, and estimated amortization of debt
Total Debt			20,000,000
Unsecured revolving line of credit with variable interest rate of prime less 50 basis points, with monthly interest payments due. Matures June 30, 2015
Debt
Maximum borrowing capacity			$ 25,000,000
Asset coverage required to be maintained on balances outstanding			3.00
Amount available for future borrowings			$ 24,300,000
Maximum borrowing capacity contingent upon certain conditions			40,000,000
Principal payments on, and estimated amortization of debt
Total Debt			700,000
Unsecured revolving line of credit entered into February 2012 \| CIM Urban Partners, L.P
Debt
Maximum borrowing capacity		$ 100,000,000
Amount available for future borrowings			0		0
Amount outstanding under the facility			$ 100,000,000		100,000,000
Unused commitment fee dependent upon amount of aggregate unused commitments, one (as a percent)			0.25%
Unused commitment fee dependent upon amount of aggregate unused commitments, two (as a percent)			0.35%
Period of extension option			1 year
Unsecured revolving line of credit entered into February 2012 \| Base rate \| CIM Urban Partners, L.P
Debt
Variable rate basis	base rate	base rate
Unsecured revolving line of credit entered into February 2012 \| Base rate \| CIM Urban Partners, L.P \| Minimum
Debt
Interest rate margin (as a percent)	0.25%	0.75%
Unsecured revolving line of credit entered into February 2012 \| Base rate \| CIM Urban Partners, L.P \| Maximum
Debt
Interest rate margin (as a percent)	0.85%	1.50%
Unsecured revolving line of credit entered into February 2012 \| LIBOR \| CIM Urban Partners, L.P
Debt
Variable rate basis	LIBOR	LIBOR
Unsecured revolving line of credit entered into February 2012 \| LIBOR \| CIM Urban Partners, L.P \| Minimum
Debt
Interest rate margin (as a percent)	1.25%	1.75%
Unsecured revolving line of credit entered into February 2012 \| LIBOR \| CIM Urban Partners, L.P \| Maximum
Debt
Interest rate margin (as a percent)	1.85%	2.50%
Unsecured revolving line of credit entered into August 2013 \| CIM Urban Partners, L.P
Debt
Maximum borrowing capacity	$ 125,000,000			$ 200,000,000
Amount available for future borrowings			$ 12,000,000		61,000,000
Amount outstanding under the facility			$ 188,000,000		64,000,000
Unused commitment fee dependent upon amount of aggregate unused commitments, one (as a percent)			0.25%
Unused commitment fee dependent upon amount of aggregate unused commitments, two (as a percent)			0.35%
Maximum borrowing capacity contingent upon certain conditions			$ 150,000,000
Unsecured revolving line of credit entered into August 2013 \| Base rate \| CIM Urban Partners, L.P
Debt
Variable rate basis			base rate
Unsecured revolving line of credit entered into August 2013 \| Base rate \| CIM Urban Partners, L.P \| Minimum
Debt
Interest rate margin (as a percent)			0.25%
Unsecured revolving line of credit entered into August 2013 \| Base rate \| CIM Urban Partners, L.P \| Maximum
Debt
Interest rate margin (as a percent)			0.85%
Unsecured revolving line of credit entered into August 2013 \| LIBOR \| CIM Urban Partners, L.P
Debt
Variable rate basis			LIBOR
Unsecured revolving line of credit entered into August 2013 \| LIBOR \| CIM Urban Partners, L.P \| Minimum
Debt
Interest rate margin (as a percent)			1.25%
Unsecured revolving line of credit entered into August 2013 \| LIBOR \| CIM Urban Partners, L.P \| Maximum
Debt
Interest rate margin (as a percent)			1.85%
Secured Borrowings
Principal payments on, and estimated amortization of debt
Total Debt			$ 37,210,000
Secured Borrowings, Principal
Principal payments on, and estimated amortization of debt
2014 (Six months ending December 31, 2014)			575,000
2015			1,180,000
2016			1,220,000
2017			1,263,000
2018			1,309,000
Thereafter			31,663,000
Total Debt			37,210,000
Mortgages Payable
Principal payments on, and estimated amortization of debt
2014 (Six months ending December 31, 2014)			3,278,000
2015			77,055,000
2016			4,354,000
2017			4,642,000
2018			24,300,000
Thereafter			111,496,000
Total Debt			225,125,000		228,319,000
All Other Principal
Principal payments on, and estimated amortization of debt
2014 (Six months ending December 31, 2014)			208,000,000
2015			700,000
2016			100,000,000
Thereafter			27,070,000
Total Debt			$ 335,770,000		$ 164,000,000
Unsecured term loan and revolving credit facility
Debt
Number of banks whom with company currently in negotiations as joint lead arrangers, to finalize facility \| item			2
Maximum borrowing capacity			$ 550,000,000
Maximum aggregate facilities with an accordion feature			$ 850,000,000

STOCK BASED COMPENSATION PLANS (Details)				3 Months Ended	6 Months Ended
STOCK BASED COMPENSATION PLANS (Details)	Jun. 12, 2014 $ / shares shares	May 06, 2014 item shares	Mar. 11, 2014 shares	Jun. 30, 2014 USD ($) shares	Jun. 30, 2014 USD ($) item shares	Apr. 28, 2014 shares	Dec. 31, 2013 shares
Share-based compensation plans
Exercise of stock options \| $					$ 201,000
Assumptions
Common shares authorized before amendment (in shares)						100,000,000
Common shares, authorized shares				200,000,000	200,000,000	1,000,000,000	20,000,000
Executive officers
Assumptions
Number of employees covered under employment agreement \| item					2
Independent directors
Assumptions
Stock-based compensation expense \| $				$ 31,000	$ 31,000
Increase in annual limitation (in shares)						100,000
PMC Commercial \| 2005 Equity Incentive Plan
Assumptions
Common shares authorized before amendment (in shares)						100,000
Common shares, authorized shares						300,000
PMC Commercial \| Board of directors
Assumptions
Granted (in shares)			6,000
Award granted to each independent members of the board of directors			2,000
Restricted shares
Assumptions
Unrecognized compensation expense \| $				2,017,000	$ 2,017,000
Recognition period					2 years
Restricted shares \| Executive officers
Assumptions
Stock-based compensation expense \| $				19,000	$ 19,000
Granted (in shares)		2,000
Number of executive officers \| item		2
Award vesting period		2 years
Percentage of award vesting immediately and at the end of each of the next two years		33.00%
Share awards to be granted as retention bonus under employment agreement, adjusted for the reverse stock split					105,000
Restricted shares \| Executive officers \| Employment Agreements
Assumptions
Stock-based compensation expense \| $				315,000	$ 315,000
Number of employees covered under employment agreement \| item					2
Share awards to be granted as retention bonus under employment agreement, adjusted for the reverse stock split					105,000
Restricted shares \| Maximum \| Executive officers
Assumptions
Increase in annual limitation (in shares)						4,000
Options
Share-based compensation plans
Options outstanding (in shares)			19,700
Exercise of stock options (in shares)					14,500
Exercise of stock options \| $					$ 201,000
Options granted (in shares)	11,850
Weighted average exercise price of outstanding options (in dollars per share) \| $ / shares	$ 23.16
Assumptions
Expected term					3 years
Risk-free interest rate (as a percent)					0.94%
Expected dividend yield (as a percent)					3.78%
Expected volatility (as a percent)					9.37%
Expected forfeiture rate (as a percent)					1.00%
Stock-based compensation expense \| $				$ 8,000	$ 8,000

EARNINGS PER SHARE (''EPS'') (Details) - shares	3 Months Ended	6 Months Ended
EARNINGS PER SHARE (''EPS'') (Details) - shares	Jun. 30, 2014	Jun. 30, 2014
EARNINGS PER SHARE ("EPS")
Increase in weighted average shares outstanding to reflect the dilutive effect of share options (in shares)	5,000	6,000
Options
Anti-dilutive securities
Anti-dilutive securities excluded from calculating diluted EPS (in shares)	11,850	11,850

EARNINGS PER SHARE (''EPS'') (Details 2) - CIM Urban REIT	Mar. 11, 2014 shares
Earnings per share (EPS)
Shares issued in connection with the Merger	2,226,509
Number of shares to be issued on conversion of preferred shares	91,039,999
Number of shares to be issued on conversion of preferred stock expressed as a percentage of outstanding stock	97.80%
Preferred shares
Earnings per share (EPS)
Shares issued in connection with the Merger	65,028,571

DIVIDENDS DECLARED (Details) - USD ($)					6 Months Ended
DIVIDENDS DECLARED (Details) - USD ($)	Jun. 12, 2014	Apr. 28, 2014	Mar. 24, 2014	Mar. 10, 2014	Jun. 30, 2014	Jun. 30, 2013
Dividend declared
Common stock as converted dividend declared (in dollars per share)		$ 0.0215	$ 0.0285
Dividend paid					$ 16,100,000	$ 41,035,000
Dividend paid					$ 59,286,000
Common stock dividend declared (in dollars per share)	$ 0.21875		0.05		$ 0.26875
Preferred dividend declared (in dollars per share)		$ 0.0302	$ 0.0403		$ 0.0705
Aggregate amount of dividend declared to preferred shareholders		$ 1,964,000			$ 4,585,000
CIM Urban Partners, L.P
Dividend declared
Common stock as converted dividend declared (in dollars per share)				$ 0.1685
Dividend paid				$ 16,100,000
PMC \| CIM Urban Partners, L.P
Dividend declared
Dividend paid				$ 59,286,000
Dividend paid per common stock (in dollars per share)				$ 27.975
Payment in cash - special dividend (in dollars per share)				27.50
Pro rata portion of regular quarterly cash dividend (in dollars per share)				$ 0.475

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Loans receivable
Fair Value Inputs [Abstract]
Rate of prepayment (as a percent)	15.00%
SBA 7(a) loans, subject to secured borrowings
Fair Value Inputs [Abstract]
Rate of prepayment (as a percent)	15.00%
Minimum \| Loans receivable
Fair Value Inputs [Abstract]
Discount rate used to estimate fair value (as a percent)	8.50%
Potential credit deterioration (as a percent)	0.00%
Maximum \| Loans receivable
Fair Value Inputs [Abstract]
Discount rate used to estimate fair value (as a percent)	15.00%
Potential credit deterioration (as a percent)	1.50%
Carrying Amount
Assets:
Loans Receivable Subject to Credit Risk	$ 153,254
SBA 7(a) loans receivable, subject to secured borrowings	40,065
Liabilities:
Secured borrowings - government guaranteed loans	40,234
Unsecured revolving lines of credit and revolving facility	288,700	$ 164,000
Term note	20,000
Junior subordinated notes	24,871
Mortgages payable	227,498	231,105
Estimated Fair Value \| Level 3
Assets:
Loans Receivable Subject to Credit Risk	153,362
SBA 7(a) loans receivable, subject to secured borrowings	40,302
Liabilities:
Secured borrowings - government guaranteed loans	40,234
Unsecured revolving lines of credit and revolving facility	288,700	164,000
Term note	20,000
Junior subordinated notes	24,871
Mortgages payable	$ 234,292	$ 231,250
Mortgages payable \| Minimum
Fair Value Inputs [Abstract]
Discount rate used to estimate fair value (as a percent)	4.10%	4.85%
Mortgages payable \| Maximum
Fair Value Inputs [Abstract]
Discount rate used to estimate fair value (as a percent)	4.35%	5.00%
Junior subordinated notes
Fair Value Inputs [Abstract]
Discount rate used to estimate fair value (as a percent)	3.83%

RELATED-PARTY TRANSACTIONS (Details) - USD ($)		3 Months Ended		6 Months Ended
RELATED-PARTY TRANSACTIONS (Details) - USD ($)	Mar. 11, 2014	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Related-party transactions
Due (from) to related parties		$ 8,890,000		$ 8,890,000		$ 6,807,000
Third-party management companies
Related-party transactions
Management fee incurred related to the rental properties		419,000	$ 344,000	811,000	$ 672,000
Management Company \| Asset management fees
Related-party transactions
Fees		5,798,000	5,431,000	11,479,000	10,840,000
Due (from) to related parties		5,898,000		5,898,000		5,426,000
Management Company \| Property management fees
Related-party transactions
Fees		$ 1,272,000	1,215,000	$ 2,531,000	2,362,000
Management Company \| 0 - 500,000
Related-party transactions
Fee percentage		0.25%		0.25%
Management Company \| 0 - 500,000 \| Minimum
Related-party transactions
Daily average gross fair value of investments		$ 0		$ 0
Management Company \| 0 - 500,000 \| Maximum
Related-party transactions
Daily average gross fair value of investments		$ 500,000		$ 500,000
Management Company \| 500,000 - 1,000,000
Related-party transactions
Fee percentage		0.2375%		0.2375%
Management Company \| 500,000 - 1,000,000 \| Minimum
Related-party transactions
Daily average gross fair value of investments		$ 500,000		$ 500,000
Management Company \| 500,000 - 1,000,000 \| Maximum
Related-party transactions
Daily average gross fair value of investments		$ 1,000,000		$ 1,000,000
Management Company \| 1,000,000 - 1,500,000
Related-party transactions
Fee percentage		0.225%		0.225%
Management Company \| 1,000,000 - 1,500,000 \| Minimum
Related-party transactions
Daily average gross fair value of investments		$ 1,000,000		$ 1,000,000
Management Company \| 1,000,000 - 1,500,000 \| Maximum
Related-party transactions
Daily average gross fair value of investments		$ 1,500,000		$ 1,500,000
Management Company \| 1,500,000 - 4,000,000
Related-party transactions
Fee percentage		0.2125%		0.2125%
Management Company \| 1,500,000 - 4,000,000 \| Minimum
Related-party transactions
Daily average gross fair value of investments		$ 1,500,000		$ 1,500,000
Management Company \| 1,500,000 - 4,000,000 \| Maximum
Related-party transactions
Daily average gross fair value of investments		$ 4,000,000		$ 4,000,000
Management Company \| 4,000,000 - 20,000,000
Related-party transactions
Fee percentage		0.10%		0.10%
Management Company \| 4,000,000 - 20,000,000 \| Minimum
Related-party transactions
Daily average gross fair value of investments		$ 4,000,000		$ 4,000,000
Management Company \| 4,000,000 - 20,000,000 \| Maximum
Related-party transactions
Daily average gross fair value of investments		20,000,000		20,000,000
CIM Management Entities
Related-party transactions
Due (from) to related parties		2,408,000		2,408,000		1,445,000
Leasing commissions		839,000	11,000	1,351,000	297,000
CIM Management Entities \| On-site personnel
Related-party transactions
Fees		1,749,000	955,000	3,793,000	2,344,000
CIM Management Entities \| Development management fees
Related-party transactions
Fees		157,000	$ 158,000	244,000	$ 294,000
CIM Management Entities and related parties
Related-party transactions
Due (from) to related parties		(12,000)		(12,000)		$ (64,000)
Manager \| Master Services Agreement
Related-party transactions
Due (from) to related parties		596,000		596,000
Fees payable per year under agreement	$ 1,000,000
Compensation expensed for performing other services		290,000		290,000
Manager \| Base Service Fee
Related-party transactions
Fees		$ 250,000		$ 306,000

COMMITMENTS AND CONTINGENCIES (Details)		1 Months Ended	3 Months Ended		6 Months Ended
COMMITMENTS AND CONTINGENCIES (Details)	Jan. 28, 2014 USD ($) $ / shares shares	Aug. 31, 2014 shares	Jun. 30, 2014 USD ($) item	Jun. 30, 2013 USD ($)	Jul. 31, 2014 shares	Jun. 30, 2014 USD ($) item shares	Jun. 30, 2013 USD ($)	Dec. 31, 2013 USD ($)
Commitments and contingencies
Outstanding loan commitments and approvals to fund loans			$ 26,200,000			$ 26,200,000
Future noncancelable minimum lease payments
2014 (Six months ending December 31, 2014)			345,000			345,000
2015			616,000			616,000
2016			743,000			743,000
2017			749,000			749,000
2018			607,000			607,000
Thereafter			129,031,000			129,031,000
Total			132,091,000			132,091,000
Ground lease for one of the project
Commitments and contingencies
Current annual rent						$ 437,000
Period after which the annual rental payment will be increased by greater of 15% or 50% of the increase in the Consumer Price Index						5 years
Increase in annual rental payment after every 5 years, option one (as a percent)						15.00%
Increase in annual rental payment after every 5 years, option two (as a percent)						50.00%
Adjustment period used to calculate increase in the Consumer Price Index						5 years
Increase in rent payable during the balance of the lease term expressed as a percentage of rent payable during the immediately preceding lease year commencing on June 1, 2040 and 2065						10.00%
Rent expense			438,000	$ 438,000		$ 876,000	$ 876,000
Straight line rent liability			10,450,000			10,450,000		$ 9,863,000
Office space in Dallas, Texas
Commitments and contingencies
Rent expense			49,000			65,000
Straight line rent liability			$ 33,000			$ 33,000
REIT Redux, L.P. et al v. PMC Commercial Trust, et al \| CIM Service Provider
Commitments and contingencies
Number of common shares acquired as a part of litigation settlement \| shares					248,000
Number of common shares acquired which are owned by REIT Redux \| shares		100,000
REIT Redux, L.P. et al v. PMC Commercial Trust, et al \| CIM Service Provider \| Maximum
Commitments and contingencies
Number of common stock agreed to be purchased as a part of litigation settlement \| shares	550,000
Common stock market price (in dollars per share) \| $ / shares	$ 25.00
Attorney's fees and counselor expenses	$ 772,000
Number of common shares agreed to be purchase which are owned by REIT Redux \| shares					100,000
Executive officers
Commitments and contingencies
Number of employees covered under employment agreement \| item						2
Multiplier used for the calculation of severance compensation or change in control payments \| item			2.99			2.99
Period of annual compensation paid to employee used to calculate severance compensation or change in control payments						3 years
Multiplier used for the calculation of payments in the event of death of employee \| item			2			2
Multiplier used for the calculation of payments in the event of disability to employee \| item			1			1
Executive officers \| Restricted share awards
Commitments and contingencies
Share awards to be granted as retention bonus under employment agreement \| shares						105,000

FUTURE MINIMUM LEASE RENTALS (Details) $ in Thousands	Jun. 30, 2014 USD ($)
Future minimum lease rentals
2014 (Six months ending December 31, 2014)	$ 71,685
2015	131,385
2016	123,583
2017	115,421
2018	91,652
Thereafter	391,008
Total	924,734
Governmental Tenants
Future minimum lease rentals
2014 (Six months ending December 31, 2014)	29,019
2015	46,321
2016	43,517
2017	40,356
2018	39,057
Thereafter	172,747
Total	371,017
Other Tenants
Future minimum lease rentals
2014 (Six months ending December 31, 2014)	42,666
2015	85,064
2016	80,066
2017	75,065
2018	52,595
Thereafter	218,261
Total	$ 553,717

CONCENTRATIONS (Details)	3 Months Ended		6 Months Ended		12 Months Ended
CONCENTRATIONS (Details)	Jun. 30, 2014 USD ($) item	Jun. 30, 2013	Jun. 30, 2014 USD ($) item	Jun. 30, 2013	Dec. 31, 2013 USD ($) item
Concentrations
Number of states in which real estate properties are owned	4		4		4
Office properties
Concentrations
Number of real estate properties owned	20		20		19
Multifamily properties
Concentrations
Number of real estate properties owned	5		5		5
Hotel properties
Concentrations
Number of real estate properties owned	3		3		3
Revenues \| Tenant Revenue Concentrations \| Governmental Tenants
Concentrations
Concentration risk (as a percent)	24.50%	27.40%	25.10%	27.50%
Amount due from Governmental Tenants \| $	$ 6,145,000		$ 6,145,000		$ 5,596,000
Revenues \| Geographical concentrations
Concentrations
Concentration risk (as a percent)	100.00%	100.00%	100.00%	100.00%
Revenues \| Geographical concentrations \| California
Concentrations
Concentration risk (as a percent)	60.20%	57.30%	60.30%	57.30%
Revenues \| Geographical concentrations \| North Carolina
Concentrations
Concentration risk (as a percent)	6.10%	6.60%	5.60%	6.50%
Revenues \| Geographical concentrations \| Texas
Concentrations
Concentration risk (as a percent)	7.70%	8.20%	7.70%	8.10%
Revenues \| Geographical concentrations \| New York
Concentrations
Concentration risk (as a percent)	2.10%	2.10%	2.10%	2.20%
Revenues \| Geographical concentrations \| Washington, D.C.
Concentrations
Concentration risk (as a percent)	23.90%	25.80%	24.30%	25.90%
Real estate investments \| Geographical concentrations
Concentrations
Concentration risk (as a percent)			100.00%		100.00%
Real estate investments \| Geographical concentrations \| California
Concentrations
Concentration risk (as a percent)			51.70%		50.50%
Real estate investments \| Geographical concentrations \| North Carolina
Concentrations
Concentration risk (as a percent)			5.50%		5.60%
Real estate investments \| Geographical concentrations \| Texas
Concentrations
Concentration risk (as a percent)			7.50%		7.70%
Real estate investments \| Geographical concentrations \| New York
Concentrations
Concentration risk (as a percent)			3.60%		3.70%
Real estate investments \| Geographical concentrations \| Washington, D.C.
Concentrations
Concentration risk (as a percent)			31.70%		32.50%
Loans receivable \| Geographical concentrations \| Texas
Concentrations
Concentration risk (as a percent)			12.70%
Loans receivable \| Geographical concentrations \| Virginia
Concentrations
Concentration risk (as a percent)			10.50%
Loans receivable \| Credit concentration
Concentrations
Concentration risk (as a percent)			94.40%

SEGMENT DISCLOSURE (Details) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT DISCLOSURE (Details) $ in Thousands	Jun. 30, 2014 USD ($)	Jun. 30, 2013 USD ($)	Jun. 30, 2014 USD ($) item	Jun. 30, 2013 USD ($)
Segment disclosure
Number of types of commercial real estate properties \| item			3
Revenues	$ 71,458	$ 59,838	$ 135,581	$ 118,146
Property/Lending expenses:
Interest expense	4,939	4,725	9,156	9,402
General and administrative	3,610	715	4,789	1,257
EXPENSES	62,644	55,030	120,460	107,516
Reportable segments
Property/Lending expenses:
Total segment net operating income	38,965	34,234	72,457	67,635
Reportable segments \| Office properties
Segment disclosure
Revenues	45,181	44,137	88,455	87,597
Property/Lending expenses:
Operating	17,933	16,192	35,586	32,494
General and administrative	76	254	392	354
EXPENSES	18,009	16,446	35,978	32,848
Total segment net operating income	27,172	27,691	52,477	54,749
Reportable segments \| Hotel properties
Segment disclosure
Revenues	14,798	10,624	29,137	20,571
Property/Lending expenses:
Operating	9,923	7,125	19,769	13,653
General and administrative	36	83	73	162
EXPENSES	9,959	7,208	19,842	13,815
Total segment net operating income	4,839	3,416	9,295	6,756
Reportable segments \| Multi-family properties
Segment disclosure
Revenues	5,208	5,077	10,192	9,978
Property/Lending expenses:
Operating	2,583	1,915	4,670	3,806
General and administrative	54	35	79	42
EXPENSES	2,637	1,950	4,749	3,848
Total segment net operating income	2,571	$ 3,127	5,443	$ 6,130
Reportable segments \| Lending division
Segment disclosure
Revenues	6,271		7,797
Property/Lending expenses:
Interest expense	635		897
General and administrative	1,253		1,658
EXPENSES	1,888		2,555
Total segment net operating income	$ 4,383		$ 5,242

SEGMENT DISCLOSURE (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT DISCLOSURE (Details 2) - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment disclosure
Interest	$ (4,939)	$ (4,725)	$ (9,156)	$ (9,402)
General and administrative	(3,610)	(715)	(4,789)	(1,257)
Asset management fees and other fees to related parties	(6,338)	(5,431)	(12,075)	(10,840)
Transaction costs	(32)	(1,394)	(500)	(1,394)
Depreciation and amortization	(17,286)	(17,533)	(33,915)	(34,670)
Income before bargain purchase gain	8,814	4,808	15,121	10,630
Bargain purchase gain			4,918
INCOME BEFORE PROVISION FOR INCOME TAXES	8,814	4,808	20,039	10,630
Provision for income taxes	(300)		(308)
NET INCOME	8,514	4,808	19,731	10,630
Net income attributable to noncontrolling interests	(115)	(113)	(113)	(109)
NET INCOME ATTRIBUTABLE TO STOCKHOLDERS	8,399	4,695	19,618	10,521
Reportable segments
Segment disclosure
Total segment net operating income	38,965	34,234	72,457	67,635
Reconciliation
Segment disclosure
Interest	(4,304)	(4,725)	(8,259)	(9,402)
General and administrative	(2,191)	(343)	(2,587)	(699)
Asset management fees and other fees to related parties	(6,338)	(5,431)	(12,075)	(10,840)
Transaction costs	(32)	(1,394)	(500)	(1,394)
Depreciation and amortization	$ (17,286)	$ (17,533)	$ (33,915)	$ (34,670)

SEGMENT DISCLOSURE (Details 3) - USD ($) $ in Thousands	6 Months Ended
SEGMENT DISCLOSURE (Details 3) - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Segment disclosure
Total assets	$ 2,072,698		$ 1,834,477
Total capital expenditures	12,578	$ 9,161
Originations	25,191
Total capital expenditures and originations	37,769	9,161
Office properties
Segment disclosure
Total capital expenditures	11,428	6,830
Hotel properties
Segment disclosure
Total capital expenditures	721	1,504
Multi-family properties
Segment disclosure
Total capital expenditures	429	$ 827
Reportable segments \| Office properties
Segment disclosure
Total assets	1,518,743		1,481,757
Reportable segments \| Hotel properties
Segment disclosure
Total assets	174,898		174,263
Reportable segments \| Multi-family properties
Segment disclosure
Total assets	171,283		173,985
Reportable segments \| Lending division
Segment disclosure
Total assets	204,933
Non-segment
Segment disclosure
Total assets	$ 2,841		$ 4,472