View Filing Data

Net (income) loss attributable to noncontrolling interests

2,856,000

(529,000)

347,046,000

2,042,000

(8,000)

1,000

165,000

(15,000)

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

2,848,000

(528,000)

347,211,000

2,027,000

Redeemable preferred stock dividends declared or accumulated (Note 10)

(4,470,000)

(3,921,000)

(12,934,000)

(11,380,000)

Redeemable preferred stock redemptions (Note 10)

(8,000)

Redeemable preferred stock redemptions (Note 10)

1,000

3,000

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$ (1,622,000)

$ (4,448,000)

$ 334,269,000

$ (9,350,000)

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE: (1)

Basic (in usd per share)

^[1]

$ (0.11)

$ (0.30)

$ 22.90

$ (0.64)

Diluted (in usd per share)

^[1]

$ (0.11)

$ (0.30)

$ 21.24

$ (0.64)

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: (1)

Basic (in shares)

^[1]

14,598

14,597

Diluted (in shares)

^[1]

14,599

14,598

15,825

14,597

[1]	All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019.

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ 2,856	$ (529)	$ 347,046	$ 2,042
Other comprehensive income (loss): cash flow hedges	0		(1,806)
Other comprehensive income (loss): cash flow hedges		(183)		1,407
COMPREHENSIVE INCOME (LOSS)	2,856	(712)	345,240	3,449
Comprehensive (income) loss attributable to noncontrolling interests	(8)	1	165	(15)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	$ 2,848	$ (711)	$ 345,405	$ 3,434

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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Beginning balance (in shares) at Dec. 31, 2017

Consolidated Statements of Equity - USD ($)
$ in Thousands

Total

Common Stock

Additional Paid-in Capital

Accumulated Other Comprehensive Income

Distributions in Excess of Earnings

Non-controlling Interests

Series A Preferred Stock

Preferred Stock

Series L Preferred Stock

Preferred Stock

14,594,979

60,592

8,080,740

Beginning balance at Dec. 31, 2017

$ 626,705

$ 44

$ 792,631

$ 1,631

$ (399,250)

$ 890

$ 1,508

$ 229,251

^[1]

(5,473)

Dividends to holders of Series A Preferred Stock ($0.34375 per share)

(493)

Reclassification of Series A Preferred Stock to permanent equity (in shares)

82,841

Reclassification of Series A Preferred Stock to permanent equity

1,885

(175)

$ 2,060

1,183

Ending balance (in shares) at Mar. 31, 2018

622

618

14,594,979

143,433

8,080,740

Ending balance at Mar. 31, 2018

624,485

$ 44

792,512

2,814

(404,598)

894

$ 3,568

$ 229,251

Beginning balance (in shares) at Dec. 31, 2017

14,594,979

60,592

8,080,740

Beginning balance at Dec. 31, 2017

626,705

$ 44

792,631

1,631

(399,250)

890

$ 1,508

$ 229,251

Reclassification of Series A Preferred Stock to permanent equity

11,517

1,407

Ending balance (in shares) at Sep. 30, 2018

2,042

14,598,357

566,176

8,080,740

Ending balance at Sep. 30, 2018

623,438

$ 44

791,773

3,038

(415,568)

838

$ 14,062

$ 229,251

Beginning balance (in shares) at Mar. 31, 2018

14,594,979

143,433

8,080,740

Beginning balance at Mar. 31, 2018

624,485

$ 44

792,512

2,814

(404,598)

894

$ 3,568

$ 229,251

Distributions to noncontrolling interests

(67)

Stock-based compensation expense (in shares)

3,378

^[1]

(5,474)

Dividends to holders of Series A Preferred Stock ($0.34375 per share)

(662)

Reclassification of Series A Preferred Stock to permanent equity (in shares)

164,077

Reclassification of Series A Preferred Stock to permanent equity

3,730

(339)

$ 4,069

407

Ending balance (in shares) at Jun. 30, 2018

1,949

1,937

14,598,357

307,510

8,080,740

Ending balance at Jun. 30, 2018

624,440

$ 44

792,245

3,221

(408,797)

839

$ 7,637

$ 229,251

^[1]

(5,474)

Dividends to holders of Series A Preferred Stock ($0.34375 per share)

(769)

Reclassification of Series A Preferred Stock to permanent equity (in shares)

259,066

Reclassification of Series A Preferred Stock to permanent equity

5,902

(533)

$ 6,435

(400)

(9)

$ (10)

(183)

Ending balance (in shares) at Sep. 30, 2018

(529)

(528)

(1)

14,598,357

566,176

8,080,740

Ending balance at Sep. 30, 2018

623,438

$ 44

791,773

3,038

(415,568)

838

$ 14,062

$ 229,251

Beginning balance (in shares) at Dec. 31, 2018

14,598,357

1,281,804

8,080,740

Beginning balance at Dec. 31, 2018

617,275

$ 44

790,354

1,806

(436,883)

837

$ 31,866

$ 229,251

^[1]

(5,474)

Dividends to holders of Series A Preferred Stock ($0.34375 per share)

(1,010)

Reclassification of Series A Preferred Stock to permanent equity (in shares)

389,577

Reclassification of Series A Preferred Stock to permanent equity

8,890

(822)

$ 9,712

(1,500)

(38)

(1)

$ (37)

(1,806)

Ending balance (in shares) at Mar. 31, 2019

291,623

291,797

(174)

14,598,357

1,669,881

8,080,740

Ending balance at Mar. 31, 2019

909,507

$ 44

789,578

(151,570)

663

$ 41,541

$ 229,251

Beginning balance (in shares) at Dec. 31, 2018

14,598,357

1,281,804

8,080,740

Beginning balance at Dec. 31, 2018

617,275

$ 44

790,354

1,806

(436,883)

837

$ 31,866

$ 229,251

Extinguishment of noncontrolling interest

(113)

Reclassification of Series A Preferred Stock to permanent equity

26,729

(1,806)

Ending balance (in shares) at Sep. 30, 2019

347,046

14,602,149

2,450,417

8,080,740

Ending balance at Sep. 30, 2019

360,601

$ 15

788,342

(718,493)

499

$ 60,987

$ 229,251

Beginning balance (in shares) at Mar. 31, 2019

14,598,357

1,669,881

8,080,740

Beginning balance at Mar. 31, 2019

909,507

$ 44

789,578

(151,570)

663

$ 41,541

$ 229,251

Distributions to noncontrolling interests

(47)

Stock-based compensation expense (in shares)

3,556

^[1]

(5,476)

Dividends to holders of Series A Preferred Stock ($0.34375 per share)

(1,150)

Reclassification of Series A Preferred Stock to permanent equity (in shares)

474,462

Reclassification of Series A Preferred Stock to permanent equity

10,825

(1,002)

$ 11,827

(1,667)

(41)

(4)

$ (41)

Ending balance (in shares) at Jun. 30, 2019

52,567

52,566

14,601,913

2,142,676

8,080,740

Ending balance at Jun. 30, 2019

966,260

$ 44

788,655

(105,634)

617

$ 53,327

$ 229,251

Contributions to noncontrolling interests

455

Distributions to noncontrolling interests

(468)

Extinguishment of noncontrolling interest

(113)

Stock-based compensation expense (in shares)

324

Retirement of fractional shares

(1)

Retirement of fractional shares (in shares)

(88)

Change in par value

$ (29)

Special cash dividends ($42.00 per share)

(613,294)

^[1]

(1,095)

Dividends to holders of Series A Preferred Stock ($0.34375 per share)

252

(1,318)

Reclassification of Series A Preferred Stock to permanent equity (in shares)

307,856

Reclassification of Series A Preferred Stock to permanent equity

7,014

(649)

$ 7,663

(115)

(3)

$ (3)

Ending balance (in shares) at Sep. 30, 2019

2,856

2,848

14,602,149

2,450,417

8,080,740

Ending balance at Sep. 30, 2019

$ 360,601

$ 15

$ 788,342

$ 0

$ (718,493)

$ 499

$ 60,987

$ 229,251

[1]	All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019.

Consolidated Statements of Equity (Parenthetical)		3 Months Ended
Consolidated Statements of Equity (Parenthetical)	Sep. 03, 2019	Sep. 30, 2019 $ / shares	Jun. 30, 2019 $ / shares	Mar. 31, 2019 $ / shares	Sep. 30, 2018 $ / shares	Jun. 30, 2018 $ / shares	Mar. 31, 2018 $ / shares
Common dividends (in usd per share)		$ 0.075	$ 0.375	$ 0.375	$ 0.375	$ 0.375	$ 0.375
Dividends to holders of Series A Preferred Stock (in usd per share)		0.34375	$ 0.34375	$ 0.34375	$ 0.34375	$ 0.34375	$ 0.34375
Reverse stock split ratio, common stock	0.3333
Special Dividend
Common dividends (in usd per share)		$ 42.00

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME (LOSS)	$ 347,046,000	$ 2,042,000
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred rent and amortization of intangible assets, liabilities and lease inducements	(2,019,000)	(3,246,000)
Depreciation and amortization	21,995,000	39,783,000
Reclassification from AOCI to interest expense	(1,806,000)	(320,000)
Reclassification from other assets to interest expense for swap termination	1,421,000	0
Change in fair value of swaps	209,000	70,000
Gain on sale of real estate	(433,104,000)	0
Impairment of real estate	69,000,000	0
Loss on early extinguishment of debt	29,982,000	0
Straight-line rent expense	0	(18,000)
Amortization of deferred loan costs	864,000	639,000
Amortization of premiums and discounts on debt	(150,000)	(111,000)
Unrealized premium adjustment	1,293,000	1,946,000
Amortization and accretion on loans receivable, net	(250,000)	(228,000)
Bad debt expense	73,000	222,000
Deferred income taxes	(76,000)	62,000
Stock-based compensation	138,000	124,000
Loans funded, held for sale to secondary market	(20,566,000)	(39,990,000)
Proceeds from sale of guaranteed loans	29,716,000	41,408,000
Principal collected on loans subject to secured borrowings	2,477,000	1,642,000
Other operating activity	(581,000)	(1,079,000)
Changes in operating assets and liabilities:
Accounts receivable and interest receivable	1,604,000	5,390,000
Other assets	3,101,000	(1,820,000)
Accounts payable and accrued expenses	(3,224,000)	2,137,000
Deferred leasing costs	(1,296,000)	(1,922,000)
Other liabilities	(7,956,000)	1,046,000
Due to related parties	(4,292,000)	2,024,000
Net cash provided by operating activities	33,599,000	49,801,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to investments in real estate	(19,946,000)	(10,139,000)
Acquisition of real estate	0	(112,048,000)
Proceeds from sale of real estate, net	941,032,000	0
Loans funded	(6,855,000)	(13,330,000)
Principal collected on loans	5,916,000	8,501,000
Other investing activity	354,000	124,000
Net cash provided by (used in) investing activities	920,501,000	(126,892,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of unsecured revolving lines of credit, revolving credit facility and or term note	(135,500,000)	0
Proceeds from unsecured revolving lines of credit, revolving credit facility and or term note	74,000,000	0
Payment of mortgages payable	(46,000,000)	0
Investments in marketable securities in connection with the legal defeasance of mortgages payable	(268,194,000)	0
Prepayment penalties and other payments for early extinguishment of debt	(5,660,000)	0
Payment of principal on SBA 7(a) loan-backed notes	(7,625,000)	(3,239,000)
Proceeds from SBA 7(a) loan-backed notes	0	38,200,000
Payment of principal on secured borrowings	(2,477,000)	(1,642,000)
Proceeds from secured borrowings	0	772,000
Payment of deferred preferred stock offering costs	(497,000)	(1,124,000)
Payment of deferred loan costs	(34,000)	(1,112,000)
Payment of other deferred costs	(383,000)	(22,000)
Payment of common dividends	(12,045,000)	(16,421,000)
Payment of special cash dividends	(613,294,000)	(1,575,000)
Net proceeds from issuance of Series A Preferred Warrants	295,000	62,000
Net proceeds from issuance of Series A Preferred Stock	28,535,000	26,984,000
Payment of preferred stock dividends	(17,095,000)	(1,404,000)
Redemption of Series A Preferred Stock	(156,000)	(75,000)
Retirement of fractional shares of Common Stock	(1,000)	0
Noncontrolling interests' distributions	(515,000)	(67,000)
Noncontrolling interests' contributions	455,000	0
Net cash (used in) provided by financing activities	(1,006,191,000)	39,337,000
Change in cash balances included in assets held for sale	755,000	0
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(51,336,000)	(37,754,000)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	77,443,000	156,318,000
End of period	26,107,000	118,564,000
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:
Total cash and cash equivalents and restricted cash	77,443,000	156,318,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	10,788,000	20,240,000
Federal income taxes paid	850,000	622,000
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Additions to investments in real estate included in accounts payable and accrued expenses	3,275,000	11,690,000
Net increase in fair value of derivatives applied to other comprehensive income	0	1,727,000
Additions to deferred costs included in accounts payable and accrued expenses	344,000	993,000
Additions to preferred stock offering costs included in accounts payable and accrued expenses	467,000	148,000
Preferred stock offering costs offset against redeemable preferred stock in temporary equity	249,000	187,000
Preferred stock offering costs offset against redeemable preferred stock in permanent equity	3,000	0
Reclassification of Series A Preferred Stock from temporary equity to permanent equity	26,729,000	11,517,000
Reclassification of loans receivable, net to real estate owned	243,000	0
Reclassification of Series A Preferred Stock from temporary equity to accounts payable and accrued expenses	0	4,000
Establishment of right-of use asset and lease liability	362,000	0
Marketable securities transferred in connection with the legal defeasance of mortgages payable	268,194,000	0
Mortgage notes payable legally defeased	245,000,000	0
Mortgage note assumed in connection with our sale of real estate	$ 28,200,000	$ 0

ORGANIZATION AND OPERATIONS	9 Months Ended
ORGANIZATION AND OPERATIONS	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND OPERATIONS	ORGANIZATION AND OPERATIONS CIM Commercial Trust Corporation ("CIM Commercial" or the "Company"), a Maryland corporation and real estate investment trust ("REIT"), together with its wholly-owned subsidiaries ("we," "us" or "our") primarily acquires, owns, and operates Class A and creative office assets in vibrant and improving metropolitan communities throughout the United States. These communities are located in areas that include traditional downtown areas and suburban main streets, which have high barriers to entry, high population density, positive population trends and a propensity for growth. We were originally organized in 1993 as PMC Commercial Trust ("PMC Commercial"), a Texas real estate investment trust. On July 8, 2013, PMC Commercial entered into a merger agreement with CIM Urban REIT, LLC ("CIM REIT"), an affiliate of CIM Group, L.P. ("CIM Group" or "CIM"), and subsidiaries of the respective parties. CIM REIT was a private commercial REIT and was the owner of CIM Urban Partners, L.P. ("CIM Urban"). The merger was completed on March 11, 2014 (the "Acquisition Date"). Our common stock, $0.001 par value per share ("Common Stock"), is currently traded on the Nasdaq Global Market ("Nasdaq"), under the ticker symbol "CMCT", and on the Tel Aviv Stock Exchange (the "TASE"), under the ticker symbol "CMCT-L." Our Series L preferred stock, $0.001 par value per share ("Series L Preferred Stock"), is currently traded on Nasdaq and on the TASE, in each case under the ticker symbol "CMCTP." We have authorized for issuance 900,000,000 shares of common stock and 100,000,000 shares of preferred stock ("Preferred Stock"). We filed Articles of Amendment (the "Reverse Stock Split Amendment") to effectuate a one-for-three reverse stock split of our Common Stock, effective on September 3, 2019 (the "Reverse Stock Split"). Pursuant to the Reverse Stock Split Amendment, every three shares of Common Stock issued and outstanding immediately prior to the effective time of the Reverse Stock Split were converted into one share of Common Stock, par value $0.003 per share. In connection with the Reverse Split Amendment, the Company filed Articles of Amendment (the "Par Value Amendment") to revert the par value of the Common Stock issued and outstanding from $0.003 per share to $0.001 per share, effective as of September 3, 2019, following the effective time of the Reverse Split Amendment. All Common Stock and per share of Common Stock amounts set forth in this Quarterly Report on Form 10-Q have been adjusted to give retroactive effect to the Reverse Stock Split, unless otherwise stated. CIM Commercial has qualified and intends to continue to qualify as a REIT, as defined in the Internal Revenue Code of 1986, as amended.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2019

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

For more information regarding our significant accounting policies and estimates, please refer to "Basis of Presentation and Summary of Significant Accounting Policies" contained in Note 2 to our consolidated financial statements for the year ended December 31, 2018, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 18, 2019.

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 ("GAAP"). Certain information and note disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim consolidated financial statements do not include all of the information and notes required by 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 nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. Our accompanying interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto, included in our Annual Report on Form 10-K filed with the SEC on March 18, 2019.

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 were expensed as incurred for acquisitions that occurred prior to October 1, 2017. For any acquisition occurring on or after October 1, 2017, we have conducted and will conduct an analysis to determine if the acquisition constitutes a business combination or an asset purchase. If the acquisition constitutes a business combination, then the transaction costs will be expensed as incurred, and if the acquisition constitutes an asset purchase, then the transaction costs will be capitalized. 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

We capitalize project costs, including pre-construction costs, interest expense, property taxes, insurance, and other costs directly related and essential to the development, redevelopment, or construction of a project, while activities are ongoing to prepare an asset for its intended use. Costs incurred after a project is substantially complete and ready for its intended use are expensed as incurred.

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 on a quarterly basis or 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 of the impairment testing under GAAP is based on either the income approach, with market discount rate, terminal capitalization rate and rental rate assumptions being most critical to such analysis, or on the sales comparison approach to similar properties. Assets held for sale are reported at the lower of the asset's carrying amount or fair value, less costs to sell. For the three and nine months ended September 30, 2019, we recognized impairment of long-lived assets of $0 and $69,000,000, respectively (Note 3). For the three and nine months ended September 30, 2018, we recognized no impairment of long-lived assets.

Derivative Financial Instruments—As part of risk management and operational strategies, from time to time, we may enter into derivative contracts with various counterparties. All derivatives are recognized on the balance sheet at their estimated fair value. On the date that we enter into a derivative contract, we designate the derivative as a fair value hedge, a cash flow hedge, a foreign currency fair value or cash flow hedge, a hedge of a net investment in a foreign operation, or a trading or non-hedging instrument.

Changes in the estimated fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge, to the extent that the hedge is effective, are initially recorded in other comprehensive income ("OCI"), and are subsequently reclassified into earnings as a component of interest expense when the variability of cash flows of the hedged transaction affects earnings (e.g., when periodic settlements of a variable-rate asset or liability are recorded in earnings). Any hedge ineffectiveness (which represents the amount by which the changes in the estimated fair value of the derivative differ from the variability in the cash flows of the forecasted transaction) is recognized in current-period earnings as a component of interest expense. When an interest rate swap designated as a cash flow hedge no longer qualifies for hedge accounting, we recognize changes in the estimated fair value of the hedge previously deferred to accumulated other comprehensive income ("AOCI"), along with any changes in estimated fair value occurring thereafter, through earnings. We classify cash flows from interest rate swap agreements as net cash provided by operating activities on the consolidated statements of cash flows as our accounting policy is to present the cash flows from the hedging instruments in the same category in the consolidated statements of cash flows as the category for the cash flows from the hedged items. See Note 12 for disclosures about our derivative financial instruments and hedging activities.

Revenue Recognition—We use a five-step model to recognize revenue for contracts with customers. The five-step model requires that we (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy the performance obligation.

Revenue from leasing activities

We operate as a lessor of real estate assets, primarily in Class A and creative office assets. In determining whether our contracts with our tenants constitute leases, we determined that our contracts explicitly identify the premises and that any substitution rights to relocate the tenant to other premises within the same building stated in the contract are not substantive. Additionally, so long as payments are made timely under these contracts, our tenants have the right to obtain substantially all the economic benefits from the use of this identified asset and can direct how and for what purpose the premises are used to conduct their operations. Therefore, our contracts with our tenants constitute leases.

All leases are classified as operating leases and minimum rents are recognized on a straight-line basis over the terms of the leases when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is recorded as deferred rent. If the lease provides for tenant improvements, we determine whether the tenant improvements, for accounting purposes, are owned by the tenant or us. When we are the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is considered the owner of the improvements, any tenant improvement allowance that is funded is treated as an incentive. Lease incentives paid to tenants are included in other assets and amortized as a reduction to rental revenue on a straight-line basis over the term of the related lease.

Reimbursements from tenants, consisting of amounts due from tenants for common area maintenance, real estate taxes, insurance, and other recoverable costs, are recognized as revenue in the period the expenses are incurred. Tenant reimbursements are recognized and presented on a gross basis when we are primarily responsible for fulfilling the promise to provide the specified good or service and control that specified good or service before it is transferred to the tenant. We have elected not to separate lease and non-lease components as the pattern of revenue recognition does not differ for the two components, and the non-lease component is not the primary component in our leases.

In addition to minimum rents, certain leases provide for additional rents based upon varying percentages of tenants’ sales in excess of annual minimums. Percentage rent is recognized once lessees’ specified sales targets have been met.

We derive parking revenues from leases with third-party operators. Our parking leases provide for additional rents based upon varying percentages of tenants’ sales in excess of annual minimums. Parking percentage rent is recognized once lessees’ specific sales targets have been met.

For the three and nine months ended September 30, 2019 and 2018, we recognized rental income as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in thousands)
Rental and other property income
Fixed lease payments (1)	$	15,389	$	34,108	$	66,925	$	101,423
Variable lease payments (2)	1,917		2,498		6,381		8,152
Rental and other property income	$	17,306	$	36,606	$	73,306	$	109,575


(1)	Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives.


(2)	Variable lease payments include expense reimbursements billed to tenants and percentage rent, net of bad debt expense from our operating leases.

Revenue from lending activities

Interest income included in interest and other income is comprised of interest earned on loans and our short-term investments and the accretion of net loan origination fees and discounts. Interest income on loans is accrued as earned with the accrual of interest suspended when the related loan becomes a Non-Accrual Loan (as defined below).

Revenue from hotel activities

Hotel revenue is recognized upon establishment of a contract with a customer. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices. Various performance obligations of hotel revenues can be categorized as follows:


•	cancellable and noncancelable room revenues from reservations and


•	ancillary services including facility usage and food or beverage.

Cancellable reservations represent a single performance obligation of providing lodging services at the hotel. The Company satisfies its performance obligation and recognizes revenues associated with these reservations over time as services are rendered to the customer. The Company satisfies its performance obligation and recognizes revenues associated with noncancelable reservations at the earlier of (i) the date on which the customer cancels the reservation or (ii) over time as services are rendered to the customer.

Ancillary services include facilities usage and providing food and beverage. The Company satisfies its performance obligation and recognizes revenues associated with these services at a point in time as the good or service is delivered to the customer.

At inception of these contracts with customers for hotel revenues, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate.

We recognized hotel income of $7,734,000 and $7,715,000 for the three months ended September 30, 2019 and 2018, respectively, and $27,087,000 and $27,564,000 for the nine months ended September 30, 2019 and 2018, respectively. Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 18:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in thousands)
Hotel properties
Hotel income	$	7,734	$	7,715	$	27,087	$	27,564
Rental and other property income	736		777		2,208		2,273
Interest and other income	41		50		135		143
Hotel revenues	$	8,511	$	8,542	$	29,430	$	29,980

Tenant recoveries outside of the lease agreements

Tenant recoveries outside of the lease agreements are related to construction projects in which our tenants have agreed to fully reimburse us for all costs related to construction. These services include architectural, permit expediter and construction services. At inception of the contract with the customer, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate. While these individual services are distinct, in the context of the arrangement with the customer, all of these services are bundled together and represent a single package of construction services requested by the customer. The Company satisfies its performance obligation and recognizes revenues associated with these services over time as the construction is completed. Amounts recognized for tenant recoveries outside of the lease agreements were $0 and $120,000 for the three months ended September 30, 2019 and 2018, respectively, and $205,000 and $398,000 for the nine months ended September 30, 2019 and 2018, respectively, which are included in interest and other income on the consolidated statements of operations. As of September 30, 2019, there were no remaining performance obligations associated with tenant recoveries outside of the lease agreements.

Loans Receivable—Our loans receivable are carried at their unamortized principal balance less unamortized acquisition discounts and premiums, retained loan discounts and loan loss reserves. For loans originated under the Small Business Administration's ("SBA") 7(a) Guaranteed Loan Program ("SBA 7(a) Program"), we sell the portion of the loan that is guaranteed by the SBA. 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. Unamortized retained loan discounts were $7,673,000 and $7,234,000 as of September 30, 2019 and December 31, 2018, respectively.

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 are being accreted to interest and other income using the effective interest method. We sold substantially all of our commercial mortgage loans with unamortized acquisition discounts of $15,951,000 to an unrelated third-party in December 2015. Acquisition discounts of $774,000 and $884,000 remained as of September 30, 2019 and December 31, 2018, respectively.

A loan receivable is generally classified as non-accrual (a "Non-Accrual Loan") if (i) it is past due as to payment of principal or interest for a period of 60 days or more, (ii) any portion of the loan is classified as doubtful or is charged-off or (iii) the repayment in full of the principal and or interest is in doubt. Generally, loans are charged-off when management determines that we will be unable to collect any remaining amounts due under the loan agreement, either through liquidation of collateral or other means. Interest income, included in interest and other income, on a Non-Accrual Loan is recognized on either the cash basis or the cost recovery basis.

On a quarterly basis, and more frequently if indicators exist, we evaluate the collectability of our loans receivable. Our evaluation of collectability involves judgment, estimates, and a review of the ability of the borrower to make principal and interest payments, the underlying collateral and the borrowers' business models and future operations in accordance with Accounting Standards Codification ("ASC") 450-20, Contingencies—Loss Contingencies, and ASC 310-10, Receivables. For the three and nine months ended September 30, 2019, we recorded $140,000 and $82,000, respectively, of impairment on our loans receivable. For the three and nine months ended September 30, 2018, we recorded no impairment on our loans receivable. We 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, we establish the general loan loss reserve using 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.

Deferred Rent Receivable and Charges—Deferred rent receivable and charges consist of deferred rent, deferred leasing costs, deferred offering costs (Note 10) and other deferred costs. Deferred rent receivable is $19,463,000 and $52,366,000 at September 30, 2019 and December 31, 2018, 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 $16,771,000 and $51,152,000 are presented net of accumulated amortization of $7,125,000 and $23,910,000 at September 30, 2019 and December 31, 2018, respectively. Deferred offering costs represent direct costs incurred in connection with our offering of Series A Preferred Units (as defined in Note 10), excluding costs specifically identifiable to a closing, such as commissions, dealer-manager fees, and other offering fees and expenses. For a specific issuance of Series A Preferred Units, issuance-specific offering costs are recorded as a reduction of proceeds raised on the issuance date. Offering costs incurred but not directly related to a specifically identifiable closing are deferred. Deferred offering costs are first allocated to each issuance on a pro-rata basis equal to the ratio of Series A Preferred Units issued in an issuance to the maximum number of Series A Preferred Units that are expected to be issued. Then, the issuance-specific offering costs and the deferred offering costs allocated to such issuance are further allocated to the Series A Preferred Stock (as defined in Note 10) and Series A Preferred Warrants (as defined in Note 10) issued in such issuance based on the relative fair value of the instruments on the date of issuance. The deferred offering costs allocated to the Series A Preferred Stock and Series A Preferred Warrants are reductions to temporary equity and permanent equity, respectively. Deferred offering costs of $4,753,000 and $4,213,000 related to our offering of Series A Preferred Units are included in deferred rent receivable and charges at September 30, 2019 and December 31, 2018, respectively. Other deferred costs are $454,000 and $409,000 at September 30, 2019 and December 31, 2018, respectively.

Redeemable Preferred Stock—Beginning on the date of original issuance of any given shares of Series A Preferred Stock (Note 10), the holder of such shares has the right to require the Company to redeem such shares at a redemption price of 100% of the Series A Preferred Stock Stated Value (as defined in Note 10), plus accrued and unpaid dividends, subject to the payment of a redemption fee until the fifth anniversary of such issuance. From and after the fifth anniversary of the date of the original issuance, the holder will have the right to require the Company to redeem such shares at a redemption price of 100% of the Series A Preferred Stock Stated Value, plus accrued and unpaid dividends, without a redemption fee, and the Company will have the right (but not the obligation) to redeem such shares at 100% of the Series A Preferred Stock Stated Value, plus accrued and unpaid dividends. The applicable redemption price payable upon redemption of any Series A Preferred Stock is payable in cash or, on or after the first anniversary of the issuance of such shares of Series A Preferred Stock to be redeemed, in the Company's sole discretion, in cash or in equal value through the issuance of shares of Common Stock, based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption. Since a holder of Series A Preferred Stock has the right to request redemption of such shares and redemptions prior to the first anniversary are to be paid in cash, we have recorded the activity related to our Series A Preferred Stock in temporary equity. We recorded the activity related to our Series A Preferred Warrants (Note 10) in permanent equity. On the first anniversary of the date of original issuance of a particular share of Series A Preferred Stock, we reclassify such share of Series A Preferred Stock from temporary equity to permanent equity because the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date. Proceeds and expenses from the sale of the Series A Preferred Units are allocated to the Series A Preferred Stock and the Series A Preferred Warrants using their relative fair values on the date of issuance.

From and after the fifth anniversary of the date of original issuance of the Series L Preferred Stock, each holder will have the right to require the Company to redeem, and the Company will also have the option to redeem (subject to certain conditions), such shares of Series L Preferred Stock at a redemption price equal to the Series L Preferred Stock Stated Value (as defined in Note 10), plus, provided certain conditions are met, all accrued and unpaid distributions. Notwithstanding the foregoing, a holder of shares of our Series L Preferred Stock may require us to redeem such shares at any time prior to the fifth anniversary of the date of original issuance of the Series L Preferred Stock if (1) we do not declare and pay in full the distributions on the Series L Preferred Stock for any annual period prior to such fifth anniversary or (2) we do not declare and pay all accrued and unpaid distributions on the Series L Preferred Stock for all past dividend periods prior to the applicable holder redemption date. The applicable redemption price payable upon redemption of any Series L Preferred Stock will be made, in the Company's sole discretion, in the form of (A) cash in Israeli new shekels ("ILS") at the then-current currency exchange rate determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, (B) in equal value through the issuance of shares of Common Stock, with the value of such Common Stock to be deemed the lower of (i) our net asset value ("NAV") per share of our Common Stock as most recently published by the Company as of the effective date of redemption and (ii) the volume-weighted average price of our Common Stock, determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, or (C) in a combination of cash in ILS and our Common Stock, based on the conversion mechanisms set forth in (A) and (B), respectively. We recorded the activity related to our Series L Preferred Stock in permanent equity.

Noncontrolling Interests—Noncontrolling interests represent the interests in various properties owned by third-parties.

Restricted Cash—Our mortgage loan and hotel management agreements provide for depositing cash into restricted accounts reserved for capital expenditures, free rent, tenant improvement and leasing commission obligations. Restricted cash also includes cash required to be segregated in connection with certain of our loans receivable.

Reclassifications—Certain prior period amounts have been reclassified to conform with the current period presentation. With the adoption of Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) and the election of the lessor practical expedient not to separate lease and non-lease components, $1,857,000 and $6,248,000 of expense reimbursements were reclassified as rental and other property income on the consolidated statements of operations for the three and nine months ended September 30, 2018, respectively, and $272,000 and $841,000 of non-lease component expense reimbursements recognized under the revenue recognition guidance were reclassified as interest and other income on the consolidated statements of operations for the three and nine months ended September 30, 2018, respectively. Under the new leasing guidance, bad debt expense associated with changes in the collectability assessment for operating leases shall be recorded as adjustments to rental and other property income rather than rental and other property operating expenses. The impact of this reclassification resulted in a $33,000 and $152,000 reclassification from rental and other property expenses to rental and other property income on the consolidated statements of operations for the three and nine months ended September 30, 2018, respectively.

Assets Held for Sale and Discontinued Operations—In the ordinary course of business, we may periodically enter into agreements to dispose of our assets. Some of these agreements are non-binding because either they do not obligate either party to pursue any transactions until the execution of a definitive agreement or they provide the potential buyer with the ability to terminate without penalty or forfeiture of any material deposit, subject to certain specified contingencies, such as completion of due diligence at the discretion of such buyer. We do not classify assets that are subject to such non-binding agreements as held for sale.

We classify assets as held for sale, if material, when they meet the necessary criteria, which include: a) management commits to and actively embarks upon a plan to sell the assets, b) the assets to be sold are available for immediate sale in their present condition, c) the sale is expected to be completed within one year under terms usual and customary for such sales and d) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We generally believe that we meet these criteria when the plan for sale has been approved by our Board of Directors, there are no known significant contingencies related to the sale and management believes it is probable that the sale will be completed within one year.

Assets held for sale are recorded at the lower of cost or estimated fair value less cost to sell. In addition, if we were to determine that the asset disposal associated with assets held for sale or disposed of represents a strategic shift, the revenues, expenses and net gain (loss) on dispositions would be recorded in discontinued operations for all periods presented through the date of the applicable disposition.

Consolidation Considerations for Our Investments in Real Estate—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 real estate on our consolidated financial statements.

Use of Estimates—The preparation of consolidated financial statements in conformity with 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.

Recently Issued Accounting Pronouncements—In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases (Topic 842), which was intended to improve financial reporting about leasing transactions. Under the new guidance, a lessee was required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with previous GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily depended on its classification as a finance or operating lease. However, unlike previous GAAP, which required a lessee to recognize only capital leases on the balance sheet, the new ASU required a lessee to recognize both types of leases on the balance sheet. The lessor accounting remained largely unchanged from previous GAAP. However, the ASU contained some targeted improvements that were intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842), which contained targeted improvements to amend inconsistencies and clarified guidance that was brought about by stakeholders. Furthermore, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), which provided the following practical expedients to entities: (1) a transition method that allowed entities to apply the new standard at the adoption date and to recognize a cumulative-effect adjustment to the opening balance of retained earnings effective at the adoption date; and (2) the option for lessors to not separate lease and non-lease components provided that certain criteria were met. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842), which provided lessors the option to elect to account for sales and other similar taxes in which the lessee directly pays third-parties to be excluded from the measurement of the contract consideration. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842), which provided narrow amendments, including clarification on transition disclosures to certain aspects of ASU 2016-02. For public entities, these ASUs were effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018.

The guidance provided a package of transition practical expedients, which must be elected as a package and applied consistently by an entity to all of its leases (including those for which the entity is a lessee or a lessor) when applying this guidance to leases that commenced before the effective date of January 1, 2019: (1) An entity need not reassess whether any expired or existing contracts are or contain leases; (2) an entity need not reassess the lease classification for any expired or existing leases (that is, all leases that were classified as operating leases prior to January 1, 2019 remain classified as operating leases); and (3) an entity need not reassess initial direct costs for any existing leases. The Company elected all the aforementioned transition practical expedients, including the expedients provided under ASU 2018-11.

From a lessee's perspective, the Company determined that there is one office lease for our lending segment that is material to the consolidated balance sheet. Based on our assessment, the lease had been classified as an operating lease and the Company recorded approximately $362,000 as a right-of-use asset and lease liability on the consolidated balance sheet on the effective date of January 1, 2019. As of September 30, 2019, the right-of-use asset and lease liability balance were each approximately $170,000.

From a lessor's perspective, the Company did not record a cumulative effect adjustment on January 1, 2019 as the aforementioned package of practical expedients allowed us to continue accounting for our then-existing or expired leases under the previous accounting guidance, and we applied the new lease accounting guidance to leases that commenced or are modified after the effective date of January 1, 2019. Leases commenced or modified after the effective date have been, and we expect future commencements and modifications of leases in the future will continue to be, classified as operating leases and that we will qualify for the lessor practical expedient provided under ASU 2018-11 to not separate lease and non-lease components. Additionally, if following the effective date, our tenants have made or make payments for taxes or insurance directly to a third-party on behalf of the Company as the lessor, we have excluded and will exclude these amounts from the measurement of the contract consideration and consider these lessee costs. Otherwise, any recoveries of these costs are and will be recognized as lease revenue on a gross basis in our consolidated income statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity. The amendments in the ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In November 2018, the FASB issued ASU No. 2018-19, Financial Instruments-Credit Losses (Topic 326): Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarified that receivables arising from operating leases are not within the scope of the credit losses standards. In April 2019, the FASB issued ASU 2019-04, Financial Instruments-Credit Losses (Topic 326): Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarified the following: (i) an entity’s estimate of expected credit losses should include expected recoveries of financial assets, including recoveries of amounts expected to be written off and those previously written off, and (ii) an entity should consider contractual extension or renewal options that it cannot unconditionally cancel when determining the contractual term over which expected credit losses are measured. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief, which allows entities to irrevocably elect the fair value option for existing financial assets on an instrument-by-instrument basis upon adoption of ASU 2016-13. Except for existing held-to-maturity debt securities, the alternative is available for all instruments in the scope of ASC 326-20 that are eligible for the fair value option in ASC 825-10. If an entity elects the fair value option, it will recognize a cumulative-effect adjustment for the difference between the fair value of the instrument and its carrying value. In October 2019, the FASB approved the deferral of the effective date of Topic 326 for certain entities, including smaller reporting companies, public entities that are not SEC filers, and entities that are not public business entities. For public entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2019. For smaller reporting companies, public entities that are not SEC filers, and entities that are not public business entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2022. Early adoption is permitted for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018. We are currently in the process of evaluating the impact of adoption of this new accounting guidance on our consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, which simplified and expanded the eligible hedging strategies for financial and nonfinancial risks by more closely aligning hedge accounting with a company’s risk management activities, and also simplified the application of Topic 815, Derivatives and Hedging, through targeted improvements in key practice areas. In addition, the ASU prescribed how hedging results should be presented and required incremental disclosures. Further, the ASU provided partial relief on the timing of certain aspects of hedge documentation and eliminated the requirement to recognize hedge ineffectiveness separately in earnings in the current period. For public entities, the ASU was effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2018. The Company has evaluated the guidance and determined that the effects of ASU 2017-12 did not have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public entities will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. For public entities, the ASU is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2019. Early adoption is permitted in any interim period after issuance of the ASU. The Company has evaluated the guidance and determined that the effects of ASU 2018-13 is not expected to have a material impact on our consolidated financial statements.

In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (the “SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. The guidance permits the use of the OIS rate based on the SOFR as a U.S. benchmark rate for purposes of applying hedge accounting. The SOFR is a volume-weighted median interest rate that is calculated daily based on overnight transactions from the prior day’s activity in specified segments of the U.S. Treasury repo market. It has been selected as the preferred replacement for the U.S. dollar London Interbank Offered Rate ("LIBOR"), which will be phased out by the end of 2021. For public entities, the ASU is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2019. Early adoption is permitted in any interim period after issuance of the ASU. The Company has evaluated the guidance and determined that the effects of ASU 2018-16 is not expected to have a material impact on our consolidated financial statements.

ACQUISITIONS AND DISPOSITIONS

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

ACQUISITIONS AND DISPOSITIONS

The fair value of real estate acquired is recorded to the acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, and furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, 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.

2019 Transactions—There were no acquisitions during the nine months ended September 30, 2019.

We sold 100% fee-simple interests in the following properties to unrelated third-parties during the nine months ended September 30, 2019. Transaction costs related to these sales were expensed as incurred.



Property	Asset Type	Date of Sale	Square Feet	Sales Price		Transaction Costs		Gain on Sale
				(in thousands)
March Oakland Properties, Oakland, CA (1)	Office / Parking Garage	March 1, 2019	975,596	$	512,016	$	8,971	$	289,779
830 1st Street, Washington, D.C.	Office	March 1, 2019	247,337	116,550		2,438		45,710
260 Townsend Street, San Francisco, CA	Office	March 14, 2019	66,682	66,000		2,539		42,092
1333 Broadway, Oakland, CA	Office	May 16, 2019	254,523	115,430		658		55,221
Union Square Properties, Washington, D.C. (2)	Office / Land	July 30, 2019	630,650	181,000		3,744		302
				$	990,996	$	18,350	$	433,104


(1)	The "March Oakland Properties" consist of 1901 Harrison Street, 2100 Franklin Street, 2101 Webster Street, and 2353 Webster Street Parking Garage.

(2)

The "Union Square Properties" consist of 999 North Capitol Street, 899 North Capitol Street and 901 North Capitol Street. Prior to the sale, we determined that the book values of such properties exceeded their estimated fair values and recognized an impairment charge of $0 and $69,000,000 for the three and nine months ended September 30, 2019 (Note 2). Our determination of the fair values of these properties was based on negotiations with the third-party buyer and the contract sales price. The gain on sale includes $113,000 of extinguishment of noncontrolling interests as a result of the sale.

The results of operations of the properties we sold have been included in the consolidated statements of operations through each property's respective disposition date. The following is the detail of the carrying amounts of assets and liabilities

at the time of the sales of the properties that occurred during the nine months ended September 30, 2019:



	(in thousands)
Assets
Investments in real estate, net	$	476,532
Deferred rent receivable and charges, net	55,297
Other intangible assets, net	316
Other assets	4,096
Total assets	$	536,241
Liabilities
Debt, net (1) (2)	$	318,072
Total liabilities	$	318,072


(1)	Debt is presented net of deferred loan costs of $1,704,000 and accumulated amortization of $576,000.

(2)

A mortgage loan with an outstanding principal balance of $28,200,000 was assumed by the buyer in connection with the sale of our property in San Francisco, California. A mortgage loan with an outstanding principal balance of $46,000,000 was prepaid in connection with the sale in March 2019 of our property in Washington, D.C. that was collateral for the loan. Mortgage loans with an aggregate outstanding principal balance of $205,500,000 were legally defeased in connection with the sale of the March Oakland Properties that were collateral for the loans. A mortgage loan with an outstanding principal balance of $39,500,000 was legally defeased in connection with the sale in May 2019 of our property in Oakland, California that was collateral for the loan.

2018 Transactions—On January 18, 2018, we acquired a 100% fee-simple interest in an office property known as 9460 Wilshire Boulevard from an unrelated third-party. The property has approximately 68,866 square feet of office space and 22,884 square feet of retail space and is located in Beverly Hills, California. The acquisition was funded with proceeds from our Series L Preferred Stock offering, and the acquired property is reported as part of the office segment (Note 18). We performed an analysis and, based on our analysis, we determined this acquisition was an asset purchase and not a business combination. As such, transaction costs were capitalized as incurred in connection with this acquisition.



Property	Asset Type	Date of Acquisition	Square Feet	Purchase Price (1)
				(in thousands)
9460 Wilshire Boulevard, Beverly Hills, CA	Office	January 18, 2018	91,750	$	132,000


(1)	In December 2017, at the time we entered into the purchase and sale agreement, we made a $20,000,000 non-refundable deposit to an escrow account that was included in other assets on our consolidated balance sheet at December 31, 2017. Transaction costs that were capitalized in connection with the acquisition of this property totaled $48,000, which are not included in the purchase price above.

The results of operations of the property we acquired during the nine months ended September 30, 2018 have been included in the consolidated statements of operations from the date of acquisition. The purchase price of the acquisition completed during the nine months ended September 30, 2018 was less than 10% of our total assets as of the most recent annual consolidated financial statements filed at or prior to the date of acquisition. The fair value of the net assets acquired for the aforementioned acquisition during the nine months ended September 30, 2018 are as follows:



	(in thousands)
Land	$	52,199
Land improvements	756
Buildings and improvements	74,522
Tenant improvements	1,451
Acquired in-place leases (1)	7,003
Acquired above-market leases (1)	109
Acquired below-market leases (1)	(3,992		)
Net assets acquired	$	132,048


(1)	Acquired in-place leases, above-market leases, and below-market leases have weighted average amortization periods of 3 years, 2 years, and 3 years, respectively.

There were no dispositions during the nine months ended September 30, 2018.

Assets Held for Sale

As noted above, in March 2019, we sold a 100% fee-simple interest in an office property located at 260 Townsend Street in San Francisco, California to an unrelated third-party. The office property had been classified as held for sale as of December 31, 2018, as the purchase and sale agreement was entered into and became subject to a non-refundable deposit prior to December 31, 2018.

The following is the detail of the carrying amounts of assets and liabilities for the office properties that are classified as held for sale on our consolidated balance sheet as of December 31, 2018:



	December 31, 2018
	(in thousands)
Assets
Investments in real estate, net (1)	$	17,123
Cash and cash equivalents	755
Accounts receivable, net	41
Deferred rent receivable and charges, net (2)	4,009
Other intangible assets, net (3)	220
Other assets	27
Total assets held for sale, net	$	22,175
Liabilities
Debt, net (4)	$	28,018
Accounts payable and accrued expenses	370
Due to related parties	81
Other liabilities	297
Total liabilities associated with assets held for sale, net	$	28,766


(1)	Investments in real estate of $24,832,000 is presented net of accumulated depreciation of $7,709,000.


(2)	Deferred rent receivable and charges consist of deferred rent receivable of $2,909,000 and deferred leasing costs of $1,669,000 net of accumulated amortization of $569,000.


(3)	Other intangible assets, net, represent acquired in-place leases of $1,778,000, which are presented net of accumulated amortization of $1,558,000.


(4)	Debt, net, includes the outstanding principal balance of 260 Townsend Street of $28,200,000, net of deferred loan costs of $243,000 and accumulated amortization of $61,000.

INVESTMENTS IN REAL ESTATE

9 Months Ended

Sep. 30, 2019

Real Estate [Abstract]

INVESTMENTS IN REAL ESTATE

Investments in real estate consist of the following:



	September 30, 2019			December 31, 2018
	(in thousands)
Land	$	134,421		$	266,410
Land improvements	2,713			18,368
Buildings and improvements	437,833			912,892
Furniture, fixtures, and equipment	3,724			4,245
Tenant improvements	32,807			133,487
Work in progress	12,152			9,234
Investments in real estate	623,650			1,344,636
Accumulated depreciation	(117,684		)	(303,699		)
Net investments in real estate	$	505,966		$	1,040,937

We recorded depreciation expense of $4,156,000 and $10,901,000 for the three months ended September 30, 2019 and 2018, respectively, and $17,908,000 and $32,487,000 for the nine months ended September 30, 2019 and 2018, respectively.

LOANS RECEIVABLE

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

LOANS RECEIVABLE

Loans receivable consist of the following:



	September 30, 2019			December 31, 2018
	(in thousands)
SBA 7(a) loans receivable, subject to loan-backed notes	$	31,565		$	36,847
SBA 7(a) loans receivable, subject to credit risk	25,670			29,385
SBA 7(a) loans receivable, subject to secured borrowings	13,876			16,409
Loans receivable	71,111			82,641
Deferred capitalized costs	1,147			1,309
Loan loss reserves	(682		)	(702		)
Loans receivable, net	$	71,576		$	83,248

SBA 7(a) Loans Receivable, Subject to Loan-Backed Notes—Represents the unguaranteed portions of loans originated under the SBA 7(a) Program which were transferred to a trust and are held as collateral in connection with a securitization transaction. The proceeds received from the transfer are reflected as loan-backed notes payable (Note 7).

SBA 7(a) Loans Receivable, Subject to Credit Risk—Represents the unguaranteed portions of loans originated under the SBA 7(a) Program which were retained by the Company and the government guaranteed portions of such loans that have not yet been fully funded or sold.

SBA 7(a) Loans Receivable, Subject to Secured Borrowings—Represents the government guaranteed portions of loans originated under the SBA 7(a) Program which were sold with the proceeds received from the sale reflected as secured borrowings—government guaranteed loans. There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal.

At September 30, 2019 and December 31, 2018, 99.9% and 99.7%, respectively, of our loans subject to credit risk were current. We classify loans with negative characteristics in substandard categories ranging from special mention to doubtful. At September 30, 2019 and December 31, 2018, $866,000 and $235,000, respectively, of loans subject to credit risk were classified in substandard categories.

At September 30, 2019 and December 31, 2018, our loans subject to credit risk were 98.8% and 98.3%, respectively, concentrated in the hospitality industry.

OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

OTHER INTANGIBLE ASSETS

A schedule of our intangible assets and liabilities and related accumulated amortization and accretion as of September 30, 2019 and December 31, 2018 is as follows:



	Assets								Liabilities
September 30, 2019	Acquired Above-Market Leases			Acquired In-Place Leases			Trade Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	74		$	13,653		$	2,957	$	(3,521	)
Accumulated amortization	(38		)	(8,906		)	—		1,959
	$	36		$	4,747		$	2,957	$	(1,562	)
Average useful life (in years)	5			8			Indefinite		4



	Assets								Liabilities
December 31, 2018	Acquired Above-Market Leases			Acquired In-Place Leases			Trade Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	146		$	16,210		$	2,957	$	(6,618	)
Accumulated amortization	(51		)	(9,731		)	—		3,746
	$	95		$	6,479		$	2,957	$	(2,872	)
Average useful life (in years)	3			8			Indefinite		4

The amortization of the acquired above-market leases, which decreased rental and other property income, was $17,000 and $14,000 for the three months ended September 30, 2019 and 2018, respectively, and $59,000 and $40,000 for the nine months ended September 30, 2019 and 2018, respectively. The amortization of the acquired in-place leases included in depreciation and amortization expense was $495,000 and $927,000 for the three months ended September 30, 2019 and 2018, respectively, and $1,636,000 and $2,769,000 for the nine months ended September 30, 2019 and 2018, respectively. The amortization of the acquired below-market leases included in rental and other property income was $376,000 and $478,000 for the three months ended September 30, 2019 and 2018, respectively, and $1,310,000 and $1,711,000 for the nine months ended September 30, 2019 and 2018, respectively.

A schedule of future amortization and accretion of acquisition related intangible assets and liabilities as of September 30, 2019, is as follows:



	Assets				Liabilities
Years Ending December 31,	Acquired Above-Market Leases		Acquired In-Place Leases		Acquired Below-Market Leases
	(in thousands)
2019 (Three months ending December 31, 2019)	$	4	$	476	$	(280	)
2020	9		1,349		(701		)
2021	5		899		(347		)
2022	5		663		(234		)
2023	6		375		—
Thereafter	7		985		—
	$	36	$	4,747	$	(1,562	)

DEBT

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

DEBT

Information on our debt is as follows:



	September 30, 2019			December 31, 2018
	(in thousands)
Mortgage loan with a fixed interest rate of 4.14% per annum, with monthly payments of interest only, and a balance of $97,100,000 due on July 1, 2026. The loan is nonrecourse. On March 1, 2019, mortgage loans with an aggregate outstanding principal balance of $205,500,000 were legally defeased in connection with the sale of the properties that were collateral for the loans. On May 16, 2019, one loan with an outstanding principal balance of $39,500,000 was legally defeased in connection with the sale of the property that was collateral for the loan.	$	97,100		$	342,100
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 had a $42,008,000 balance due on January 5, 2027. The loan was nonrecourse. On March 1, 2019, the mortgage loan was prepaid in connection with the sale of the property that was collateral for the loan.	—			46,000
	97,100			388,100
Deferred loan costs related to mortgage loans	(181		)	(1,177		)
Total Mortgages Payable	96,919			386,923
Secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 6.21% and 5.89% at September 30, 2019 and December 31, 2018, respectively.	8,935			11,283
Secured borrowing principal on SBA 7(a) loans sold for excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.82% and 3.57% at September 30, 2019 and December 31, 2018, respectively.	4,353			4,482
	13,288			15,765
Unamortized premiums	727			940
Total Secured Borrowings—Government Guaranteed Loans	14,015			16,705
Revolving credit facility	68,500			130,000
SBA 7(a) loan-backed notes with a variable interest rate which resets monthly based on the lesser of the one-month LIBOR plus 1.40% or the prime rate less 1.08%, with payments of interest and principal due monthly. Balance due at maturity in March 20, 2043.	26,144			33,769
Junior subordinated notes with a variable interest rate which resets quarterly based on the three-month LIBOR plus 3.25%, with quarterly interest only payments. Balance due at maturity on March 30, 2035.	27,070			27,070
	121,714			190,839
Deferred loan costs related to other debt	(3,129		)	(3,941		)
Discount on junior subordinated notes	(1,792		)	(1,855		)
Total Other Debt	116,793			185,043
Total Debt	$	227,727		$	588,671

The mortgages payable are secured by deeds of trust on certain of the properties and assignments of rents. The junior subordinated notes may be redeemed at par at our option.

Secured borrowings—government guaranteed loans represent sold loans which are treated as secured borrowings because the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Secured Borrowing and Collateral. These loans included cash premiums that are amortized as a reduction to interest expense over the life of the loan using the effective interest method and are fully amortized when the underlying loan is repaid in full.

SBA 7(a) loan-backed notes are secured by deeds of trust or mortgages.

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 $4,535,000 and $5,994,000 are presented net of accumulated amortization of $1,225,000 and $876,000 at September 30, 2019 and December 31, 2018, respectively, and are a reduction to total debt.

In September 2014, CIM Commercial entered into an $850,000,000 unsecured credit facility with a bank syndicate which consisted of a $450,000,000 revolver, a $325,000,000 term loan and a $75,000,000 delayed-draw term loan. Outstanding advances under the revolver bore interest at (i) the base rate plus 0.20% to 1.00% or (ii) LIBOR plus 1.20% to 2.00%, depending on the maximum consolidated leverage ratio. Outstanding advances under the term loans bore interest at (i) the base rate plus 0.15% to 0.95% or (ii) LIBOR plus 1.15% to 1.95%, depending on the maximum consolidated leverage ratio. Our unsecured credit facility matured on September 30, 2018.

In May 2015, CIM Commercial entered into an unsecured term loan facility with a bank syndicate pursuant to which CIM Commercial could borrow up to a maximum of $385,000,000. Outstanding advances under the term loan facility bore interest at (i) the base rate plus 0.60% to 1.25% or (ii) LIBOR plus 1.60% to 2.25%, depending on the maximum consolidated leverage ratio, which interest rate was effectively converted to a fixed rate of 3.16% through interest rate swaps. The term loan facility had a maturity date in May 2022. On November 2, 2015, $385,000,000 was drawn under the term loan facility. Proceeds from the term loan facility were used to repay balances outstanding under our unsecured credit facility. During the year ended December 31, 2017, we repaid $215,000,000 of outstanding borrowings on our unsecured term loan facility. In connection with such paydowns, we wrote off deferred loan costs of $1,988,000 and related accumulated amortization of $705,000, a proportionate amount to the borrowings being repaid. On October 30, 2018, we repaid and terminated the $170,000,000 of outstanding borrowings on our unsecured term loan facility using proceeds from our new revolving credit facility (as described below). In connection with such paydown and termination, we wrote off the remaining deferred loan costs of $1,872,000 and related accumulated amortization of $1,064,000.

In June 2016, we entered into six mortgage loan agreements with an aggregate principal amount of $392,000,000. A portion of the net proceeds from the loans was used to repay outstanding balances under our unsecured credit facility and the remaining portion was used to repurchase shares of our Common Stock in a private repurchase in September 2016. On September 21, 2017, in connection with the sale of an office property in Los Angeles, California, one mortgage loan with an outstanding principal balance of $21,700,000, collateralized by such property, was assumed by the buyer. On March 1, 2019, additional mortgage loans with an aggregate outstanding principal balance of $205,500,000 at such time, were legally defeased in connection with the sale of the related properties. The cash outlay required for the defeasance in the net amount of $224,086,000 was based on the purchase price of U.S. government securities that will generate sufficient cash flow to fund continued interest payments on the loans from the effective date of the defeasance through the date on which we could repay the loans at par. As a result of the defeasance, we recognized a loss on early extinguishment of debt of $0 and $19,290,000 for the three and nine months ended September 30, 2019, respectively, which represents the sum of the difference between the purchase price of U.S. government securities of $224,086,000 and the aggregate outstanding principal balance of the mortgage loans of $205,500,000, the write-off of deferred loan costs of $637,000 and related accumulated amortization of $170,000, and transaction costs of $237,000. On March 14, 2019, in connection with the sale of an office property in San Francisco, California, one mortgage loan with an outstanding principal balance of $28,200,000 at such time was assumed by the buyer. As a result of this assumption, we recognized a loss on early extinguishment of debt of $0 and $178,000 for the three and nine months ended September 30, 2019, respectively, which represents the write-off of deferred loan costs of $243,000 and related accumulated amortization of $65,000. On May 16, 2019, one mortgage loan with an outstanding principal balance of $39,500,000 at such time, was legally defeased in connection with the sale of the related property. The cash outlay required for the defeasance in the net amount of $44,108,000 was based on the purchase price of U.S. government securities that will generate sufficient cash flow to fund continued interest payments on the loan from the effective date of the defeasance through the date on which we could repay the loan at par. As a result of the defeasance, we recognized a loss on early extinguishment of debt of $0 and $4,911,000 for the three and nine months ended September 30, 2019, respectively, which represents the sum of the difference between the purchase price of U.S. government securities of $44,108,000 and the outstanding principal balance of the mortgage loan of $39,500,000, the write-off of deferred loan costs of $287,000 and related accumulated amortization of $82,000, and transaction costs of $98,000.

On May 30, 2018, we completed a securitization of the unguaranteed portion of certain of our SBA 7(a) loans receivable with the issuance of $38,200,000 of unguaranteed SBA 7(a) loan-backed notes. The securitization uses a trust formed for the benefit of the note holders (the "Trust") which is considered a variable interest entity ("VIE"). Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 810, Consolidation, the Company determined that it is the primary beneficiary based on its power to direct activities through its role as servicer and its obligations to absorb losses and right to receive benefits. The SBA 7(a) loan-backed notes are collateralized solely by the right to receive payments and other recoveries attributable to the unguaranteed portions of certain of our SBA 7(a) loans receivable. The SBA 7(a) loan-backed notes mature on March 20, 2043, with monthly payments due as payments on the collateralized loans are received. Based on the anticipated repayments of our collateralized SBA 7(a) loans, we estimate the weighted average life of the SBA 7(a) loan-backed notes to be approximately two years. The SBA 7(a) loan-backed notes bear interest at the lower of the one-month LIBOR plus 1.40% or the prime rate less 1.08%. We reflect the SBA 7(a) loans receivable as assets on our consolidated balance sheets and the SBA 7(a) loan-backed notes as debt on our consolidated balance sheets. The restricted cash on our consolidated balance sheets as of September 30, 2019 and December 31, 2018 included $2,232,000 and $3,174,000, respectively, of funds related to our SBA 7(a) loan-backed notes.

In October 2018, CIM Commercial entered into a revolving credit facility with a bank syndicate pursuant to which CIM Commercial can borrow up to a maximum of $250,000,000, subject to a borrowing base calculation. The revolving credit facility is secured by deeds of trust on certain properties. Outstanding advances under the revolving credit facility bear interest at (i) the base rate plus 0.55% or (ii) LIBOR plus 1.55%. At December 31, 2018, the variable interest rate was 4.07%. The interest rate on the first $120,000,000 of one-month LIBOR indexed variable rate borrowings on our revolving credit facility was effectively converted to a fixed rate of 3.11% through interest rate swaps until such swaps were terminated on March 11, 2019. The revolving credit facility is also subject to an unused commitment fee of 0.15% or 0.25% depending on the amount of aggregate unused commitments. The revolving credit facility matures in October 2022 and provides for one one-year extension option under certain conditions. The Company has no current plans to refinance or repay the revolving credit facility. On October 30, 2018, we borrowed $170,000,000 on this facility to repay outstanding borrowings on our unsecured term loan facility. On December 28, 2018, we repaid $40,000,000 of outstanding borrowings on our revolving credit facility and we terminated one interest rate swap with a notional value of $50,000,000 (Note 12). On February 28, 2019 and March 11, 2019, we repaid $10,000,000 and $120,000,000, respectively, of outstanding borrowings on our revolving credit facility using cash on hand and net proceeds from the 2019 asset sales (Note 3), and, in connection with the March 11, 2019 repayment, we terminated our two remaining interest rate swaps, which had an aggregate notional value of $120,000,000 (Note 12). At September 30, 2019 and December 31, 2018, $68,500,000 and $130,000,000, respectively, was outstanding under the revolving credit facility, and approximately $175,100,000 and $91,000,000, respectively, was available for future borrowings. On October 18, 2019, we borrowed $76,500,000 under the revolving credit facility, which was placed into escrow to substantially fund the tender offer for Series L Preferred Stock (Note 10), expected to expire on November 20, 2019. The revolving credit facility is not subject to any financial covenants, but is subject to a borrowing base calculation that determines the amount we can borrow.

On March 1, 2019, in connection with the sale of an office property in Washington, D.C., we prepaid the related mortgage loan with an outstanding principal balance of $46,000,000 at such time, using proceeds from the sale. As a result, we recognized a loss on early extinguishment of debt of $0 and $5,603,000 for the three and nine months ended September 30, 2019, respectively, which represents a prepayment penalty of $5,325,000 and the write-off of deferred loan costs of $537,000 and related accumulated amortization of $259,000.

At September 30, 2019 and December 31, 2018, accrued interest and unused commitment fees payable of $552,000 and $1,574,000, respectively, are included in accounts payable and accrued expenses.

Future principal payments on our debt (face value) at September 30, 2019 are as follows:



Years Ending December 31,	Mortgages Payable		Secured Borrowings Principal (1)		Other (1) (2)		Total
	(in thousands)
2019 (Three months ending December 31, 2019)	$	—	$	128	$	1,351	$	1,479
2020	—		529		1,844		2,373
2021	—		557		1,893		2,450
2022	—		588		70,443		71,031
2023	—		620		2,000		2,620
Thereafter	97,100		10,866		44,183		152,149
	$	97,100	$	13,288	$	121,714	$	232,102

(1)

Principal payments on secured borrowings and SBA 7(a) loan-backed notes, which are included in Other, are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled 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 junior subordinated notes, SBA 7(a) loan-backed notes, and revolving credit facility.

STOCK-BASED COMPENSATION PLANS	9 Months Ended
STOCK-BASED COMPENSATION PLANS	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION PLANS	STOCK-BASED COMPENSATION PLANS In June 2017, we granted awards of 1,065 restricted shares of Common Stock to each of the independent members of the Board of Directors (3,195 in aggregate) under the 2015 Equity Incentive Plan, which fully vested in June 2018 based on one year of continuous service. In May 2018, we granted awards of 1,126 restricted shares of Common Stock to each of the independent members of the Board of Directors (3,378 in aggregate) under the 2015 Equity Incentive Plan, which fully vested in May 2019 based on one year of continuous service. In May 2019, we granted awards of 889 restricted shares of Common Stock to each of the independent members of the Board of Directors (3,556 in aggregate) under the 2015 Equity Incentive Plan, which vest after one year of continuous service. In July 2019, we granted awards of 81 restricted shares of Common Stock to each of the independent members of the Board of Directors (324 in aggregate) under the 2015 Equity Incentive Plan, which will vest at the same time as the restricted shares of Common Stock granted in May 2019. Compensation expense related to these restricted shares of Common Stock is recognized over the vesting period. We recorded compensation expense related to these restricted shares of Common Stock in the amount of $56,000 and $38,000 for the three months ended September 30, 2019 and 2018, respectively, and $138,000 and $124,000 for the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, there was $131,000 of total unrecognized compensation expense related to restricted shares of Common Stock which will be recognized over the next year.

EARNINGS PER SHARE (''EPS'')

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

EARNINGS PER SHARE ("EPS")

The computations of basic EPS are based on our weighted average shares outstanding. The basic weighted average number of shares of Common Stock outstanding was 14,598,000 and 14,598,000 for the three months ended September 30, 2019 and 2018, respectively, and 14,598,000 and 14,597,000 for the nine months ended September 30, 2019 and 2018, respectively. In order to calculate the diluted weighted average number of shares of Common Stock outstanding for the three and nine months ended September 30, 2019, the basic weighted average number of shares of Common Stock outstanding was increased by 1,000 and 1,227,000, respectively, to reflect the dilutive effect of certain shares of our Series A Preferred Stock. The computation of diluted EPS does not include outstanding shares of Series A Preferred Stock for the three and nine months ended September 30, 2018 because their impact was deemed to be anti-dilutive. Outstanding Series A Preferred Warrants were not included in the computation of diluted EPS for the three and nine months ended September 30, 2019 and 2018 because their impact was either anti-dilutive or such warrants were not exercisable during such periods (Note 11). Outstanding shares of Series L Preferred Stock were not included in the computation of diluted EPS for the three and nine months ended September 30, 2019 and 2018 because such shares were not redeemable during such periods.

EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method for computing EPS in the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to rounding.

The following table reconciles the numerator and denominator used in computing our basic and diluted per-share amounts for net (loss) income attributable to common stockholders for the three and nine months ended September 30, 2019 and 2018:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019		2018
	(in thousands, except per share amounts)
Numerator:
Net (loss) income attributable to common stockholders	$	(1,622	)	$	(4,448	)	$	334,269	$	(9,350	)
Redeemable preferred stock dividends declared on dilutive shares	—			—			1,917		—
Diluted net (loss) income attributable to common stockholders	$	(1,622	)	$	(4,448	)	$	336,186	$	(9,350	)
Denominator:
Basic weighted average shares of Common Stock outstanding	14,598			14,598			14,598		14,597
Effect of dilutive securities—contingently issuable shares	1			—			1,227		—
Diluted weighted average shares and common stock equivalents outstanding	14,599			14,598			15,825		14,597
Net (loss) income attributable to common stockholders per share:
Basic	$	(0.11	)	$	(0.30	)	$	22.90	$	(0.64	)
Diluted	$	(0.11	)	$	(0.30	)	$	21.24	$	(0.64	)

REDEEMABLE PREFERRED STOCK

9 Months Ended

Sep. 30, 2019

Temporary Equity Disclosure [Abstract]

REDEEMABLE PREFERRED STOCK

Series A Preferred Stock—We have an effective registration statement with the SEC with respect to the offer and sale of up to $900,000,000 of units (collectively, the "Series A Preferred Units"), with each Series A Preferred Unit consisting of (i) one share of Series A Preferred Stock, par value $0.001 per share, of the Company (collectively, the "Series A Preferred Stock") with an initial stated value of $25.00 per share (the "Series A Preferred Stock Stated Value"), subject to adjustment, and (ii) one warrant (collectively, the "Series A Preferred Warrants") to purchase 0.25 of a share of Common Stock (Note 11). The registration statement allows us to sell up to a maximum of 36,000,000 Series A Preferred Units. Our Series A Preferred Stock ranks senior to our Common Stock with respect to payment of dividends and distributions of amounts upon liquidation, dissolution or winding up. Proceeds and expenses from the sale of the Series A Preferred Units are allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance.

Our Series A Preferred Stock is redeemable at the option of the holder (the "Series A Preferred Stock Holder") or CIM Commercial. The redemption schedule of the Series A Preferred Stock allows redemptions at the option of the Series A Preferred Stock Holder from the date of original issuance of any given shares of Series A Preferred Stock through the second year at the Series A Preferred Stock Stated Value, plus accrued and unpaid dividends, subject to the payment of a 13.0% redemption fee. After year two, the redemption fee decreases to 10.0% and after year five there is no redemption fee. Also, CIM Commercial has the right to redeem the Series A Preferred Stock after year five at the Series A Preferred Stock Stated Value, plus accrued and unpaid dividends. At the Company's discretion, redemptions will be paid in cash or, on or after the first anniversary of the issuance of such shares of Series A Preferred Stock, an equal value of Common Stock based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption.

As of September 30, 2019, we had issued 4,104,867 Series A Preferred Units and received gross proceeds of $102,620,000 ($101,987,000 of which were allocated to the Series A Preferred Stock and the remaining $633,000 were allocated to the Series A Preferred Warrants). In connection with such issuance, costs specifically identifiable to the offering of Series A Preferred Units, such as commissions, dealer manager fees and other offering fees and expenses, totaled $8,102,000 ($7,969,000 of which were allocated to the Series A Preferred Stock and the remaining $133,000 were allocated to the Series A Preferred Warrants). In addition, as of September 30, 2019, non-issuance-specific costs related to this offering totaled $5,360,000. As of September 30, 2019, we have reclassified and allocated $603,000 and $4,000 from deferred rent receivable and charges to Series A Preferred Stock and Series A Preferred Warrants, respectively, as a reduction to the gross proceeds received. Such reclassification was based on the cumulative number of Series A Preferred Units issued relative to the maximum number of Series A Preferred Units expected to be issued under the offering. As of September 30, 2019, 12,887 shares of Series A Preferred Stock had been redeemed.

On the first anniversary of the date of original issuance of a particular share of Series A Preferred Stock, we reclassify such share of Series A Preferred Stock from temporary equity to permanent equity because the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date. As of September 30, 2019, we have reclassified an aggregate of $56,033,000 in net proceeds from temporary equity to permanent equity.

Holders of Series A Preferred Stock are entitled to receive, if, as and when authorized by our Board of Directors, and declared by us out of legally available funds, cumulative cash dividends on each share of Series A Preferred Stock at an annual rate of 5.5% of the Series A Preferred Stock Stated Value (i.e., the equivalent of $0.34375 per share per quarter). Dividends on each share of Series A Preferred Stock begin accruing on, and are cumulative from, the date of issuance. Cash dividends declared on our Series A Preferred Stock for the nine months ended September 30, 2019 and 2018 consist of the following:



Declaration Date	Payment Date	Number of Shares	Cash Dividends Declared
			(in thousands)
August 8, 2019	October 15, 2019	4,091,980	$	1,318
June 4, 2019	July 15, 2019	3,601,721	$	1,150
February 20, 2019	April 15, 2019	3,149,924	$	1,010

August 22, 2018	October 15, 2018	2,457,119	$	769
June 4, 2018	July 16, 2018	2,149,863	$	662
March 6, 2018	April 16, 2018	1,674,841	$	493

Series L Preferred Stock—On November 21, 2017, we issued 8,080,740 shares of Series L Preferred Stock having an initial stated value of $28.37 per share ("Series L Preferred Stock Stated Value"), subject to adjustment. We received gross proceeds of $229,251,000 from the sale of the Series L Preferred Stock, which was reduced by issuance-specific offering costs, such as commissions, dealer manager fees, and other offering fees and expenses, totaling $15,928,000, a discount of $2,946,000, and non-issuance-specific costs of $2,532,000. These fees have been recorded as a reduction to the gross proceeds in permanent equity.

Our Series L Preferred Stock ranks senior to our Common Stock with respect to distributions of amounts upon liquidation, dissolution or winding up and junior to our Series A Preferred Stock and Common Stock with respect to the payment of dividends. From and after the fifth anniversary of the date of original issuance of the Series L Preferred Stock, each holder will have the right to require the Company to redeem, and the Company will also have the option to redeem (subject to certain conditions), such shares of Series L Preferred Stock at a redemption price equal to the Series L Preferred Stock Stated Value, plus, provided certain conditions are met, all accrued and unpaid distributions. Notwithstanding the foregoing, a holder of shares of our Series L Preferred Stock may require us to redeem such shares at any time prior to the fifth anniversary of the date of original issuance of the Series L Preferred Stock if (1) we do not declare and pay in full the distribution on the Series L Preferred Stock for any annual period prior to such fifth anniversary or (2) we do not declare and pay all accrued and unpaid distributions on the Series L Preferred Stock for all past dividend periods prior to the applicable holder redemption date. The applicable redemption price payable upon redemption of any Series L Preferred Stock will be made, in the Company's sole discretion, in the form of (A) cash in ILS at the then-current currency exchange rate determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, (B) in equal value through the issuance of shares of Common Stock, with the value of such Common Stock to be deemed the lower of (i) the NAV per share of our Common Stock as most recently published by the Company as of the effective date of redemption and (ii) the volume-weighted average price of our Common Stock, determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, or (C) in a combination of cash in ILS and our Common Stock, based on the conversion mechanisms set forth in (A) and (B), respectively. As of September 30, 2019, no shares of Series L Preferred Stock have been redeemed.

Holders of Series L Preferred Stock are entitled to receive, if, as and when authorized by our Board of Directors, and declared by us out of legally available funds, cumulative cash dividends on each share of Series L Preferred Stock at an annual rate of 5.5% of the Series L Preferred Stock Stated Value (i.e., the equivalent of $1.56035 per share per year). Dividends on each share of Series L Preferred Stock began accruing on, and are cumulative from, the date of issuance. Cash dividends on shares of Series L Preferred Stock are paid annually, with the first distribution paid in January 2019 for the period from the date of issuance through December 31, 2018. If the Company fails to timely declare distributions or fails to timely pay distributions on the Series L Preferred Stock, the annual dividend rate of the Series L Preferred Stock will temporarily increase by 1.0% per year, up to a maximum rate of 8.5%. Accumulated cash dividends on our Series L Preferred Stock for the three and nine months ended September 30, 2019 and 2018, are included in the numerator for purposes of calculating basic and diluted net income (loss) attributable to common stockholders per share (Note 9), and consist of the following:



Accumulation Period			Dividends
Start Date	End Date	Number of Shares	Accumulated
			(in thousands)
July 1, 2019	September 30, 2019	8,080,740	$	3,152
April 1, 2019	June 30, 2019	8,080,740	$	3,152
January 1, 2019	March 31, 2019	8,080,740	$	3,152

July 1, 2018	September 30, 2018	8,080,740	$	3,152
April 1, 2018	June 30, 2018	8,080,740	$	3,152
January 1, 2018	March 31, 2018	8,080,740	$	3,152

Until the fifth anniversary of the date of original issuance of our Series L Preferred Stock, we are prohibited from issuing any shares of preferred stock ranking senior to or on parity with the Series L Preferred Stock with respect to the payment of dividends, other distributions, liquidation, and or dissolution or winding up of the Company unless the Minimum Fixed Charge Coverage Ratio, calculated in accordance with the Articles Supplementary describing the Series L Preferred Stock, is equal to or greater than 1.25:1.00. At September 30, 2019 and December 31, 2018, we were in compliance with the Series L Preferred Stock Minimum Fixed Charge Coverage Ratio.

Tender Offer

On October 22, 2019, we commenced a cash tender offer (the "Tender Offer") to purchase up to 2,693,580 shares of Series L Preferred Stock, representing one-third of the outstanding shares of Series L Preferred Stock, at a purchase price of $29.12 per share, to be paid in ILS. The Tender Offer expires on November 20, 2019 (the “Expiration Date”), unless extended or earlier terminated by us. On the terms and subject to the conditions of the Tender Offer, for each share of Series L Preferred Stock properly tendered and accepted by us, we will cause to be paid to the tendering holder as promptly as practicable following the Expiration Date the purchase price of $29.12 per share (of which $1.39 reflects the amount of dividends on the Series L Preferred Stock that will be accrued as of the Expiration Date), as converted to and to be paid in ILS. To fund the maximum aggregate purchase price of the Tender Offer, we placed in escrow $78,545,000, which was primarily funded from borrowings under the revolving credit facility (Note 7).

STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

Dividends

Cash dividends per share of Common Stock declared during the nine months ended September 30, 2019 and 2018 consist of the following:



Declaration Date	Payment Date	Type	Cash Dividend Per Common Share (1)
August 8, 2019	September 18, 2019	Regular Quarterly	$	0.07500
August 8, 2019	August 30, 2019	Special Cash	$	42.00000
June 4, 2019	June 27, 2019	Regular Quarterly	$	0.37500
February 20, 2019	March 25, 2019	Regular Quarterly	$	0.37500

August 22, 2018	September 25, 2018	Regular Quarterly	$	0.37500
June 4, 2018	June 28, 2018	Regular Quarterly	$	0.37500
March 6, 2018	March 29, 2018	Regular Quarterly	$	0.37500


(1)	Amounts have been adjusted to give retroactive effect to the Reverse Stock Split.

On December 18, 2017, we declared a special cash dividend of $2.19 per share of Common Stock ($0.73 per share prior to the Reverse Stock Split), or $1,575,000 in the aggregate, which was paid on January 11, 2018 to stockholders of record on December 29, 2017. This special cash dividend allowed common stockholders that did not participate in the December 18, 2017 private repurchase to receive the economic benefit of such repurchase. Pursuant to the December 18, 2017 private repurchase, the Company repurchased in a privately negotiated transaction, canceled and retired 4,696,969 shares of Common Stock from Urban Partners II, LLC ("Urban II"), a fund managed by an affiliate of CIM Group, the Administrator and the Operator of CIM Commercial (each as defined in Note 14), and an affiliate of CIM REIT and CIM Urban, for an aggregate purchase price of $310,000,000, or $66.00 per share. Urban II waived its right to receive the January 11, 2018 special cash dividend.

On August 30, 2019, in connection with the Program to Unlock Embedded Value in Our Portfolio and Improve Trading Liquidity of Our Common Stock, as defined in "Item 2 —Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Quarterly Report on Form 10-Q, we paid a special cash dividend of $42.00 per share of Common Stock ($14.00 per share of Common Stock prior to the Reverse Stock Split) (the “Special Dividend”), or $613,294,000 in the aggregate, to stockholders of record at the close of business on August 19, 2019. The Special Dividend was funded primarily by the net proceeds (after the repayment of debt) received from the sale of ten properties during 2019 (Note 3) and borrowings on our revolving credit facility.

Series A Preferred Warrants

Each Series A Preferred Unit consists of (i) one share of Series A Preferred Stock (Note 10) and (ii) one Series A Preferred Warrant (Note 10) which allows the holder to purchase 0.25 of a share of Common Stock. The Series A Preferred Warrants are exercisable beginning on the first anniversary of the date of their original issuance until and including the fifth anniversary of the date of such issuance. The exercise price of each Series A Preferred Warrant is at a 15.0% premium to the per share estimated NAV of our Common Stock (as most recently published and designated as the Applicable NAV by us at the time of each issuance of Series A Preferred Warrants). The exercise price of each Series A Preferred Warrant issued prior to the Reverse Stock Split has been amended to account for the effect of the Reverse Stock Split and the Special Dividend.

Proceeds and expenses from the sale of the Series A Preferred Units are allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance. As of September 30, 2019, we had issued 4,104,867 Series A Preferred Warrants in connection with our offering of Series A Preferred Units and allocated net proceeds of $496,000, after specifically identifiable offering costs and allocated general offering costs, to the Series A Preferred Warrants in permanent equity.

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

Hedges of Interest Rate Risk

In order to manage financing costs and interest rate exposure related to the one-month LIBOR indexed variable rate borrowings, on August 13, 2015, we entered into ten interest rate swap agreements with multiple counterparties totaling $385,000,000 of notional value. These swap agreements became effective on November 2, 2015. During the year ended December 31, 2017, we repaid $215,000,000 of outstanding one-month LIBOR indexed variable rate borrowings and we terminated seven interest rate swaps with an aggregate notional value of $215,000,000, for which we received termination payments, net of fees, of $973,000. On December 28, 2018, we repaid $40,000,000 of outstanding one-month LIBOR indexed variable rate borrowings and we terminated one interest rate swap with a notional value of $50,000,000, for which we received a termination payment, net of fees, of $684,000. On March 11, 2019, we repaid $120,000,000 of outstanding one-month LIBOR indexed variable rate borrowings (Note 7) and we terminated our two remaining interest rate swaps with an aggregate notional value of $120,000,000, for which we received aggregate termination payments, net of fees, of $1,302,000. The fair value of our two remaining swaps at the time of termination was $1,421,000 resulting in a net loss of $0 and $119,000, which was recorded as a net increase to interest expense on our consolidated statements of operations for the three and nine months ended September 30, 2019, respectively.

Each of our interest rate swap agreements initially met the criteria for cash flow hedge accounting treatment and we had designated the interest rate swap agreements as cash flow hedges of the risk of variability attributable to changes in the one-month LIBOR. Accordingly, the interest rate swaps were recorded on our consolidated balance sheets at fair value, and prior to August 1, 2018, the changes in the fair value of the swaps were recorded in OCI and reclassified to earnings as an adjustment to interest expense as interest became receivable or payable (Note 2). On July 31, 2018, we determined the hedged forecasted transaction was no longer probable of occurring so all subsequent changes in the fair value of our interest rate swaps were included in interest expense on our consolidated statements of operations. The balance in AOCI as of July 31, 2018 was reclassified to earnings as an adjustment to interest expense on our consolidated statements of operations as the originally designated forecasted transaction affected earnings. For the three and nine months ended September 30, 2019, $0 and $1,806,000, respectively, was reclassified from AOCI and decreased interest expense on our consolidated statements of operations, which included a write off of $1,580,000 at the time our two remaining interest rate swaps were terminated. For each of the three and nine months ended September 30, 2018, $320,000 was reclassified from AOCI and decreased interest expense on our consolidated statements of operations. Beginning on August 1, 2018, changes in the fair value of the swaps were recorded in interest expense on our consolidated statements of operations. For the three and nine months ended September 30, 2019, $0 and $209,000, respectively, was included as an increase in interest expense on our consolidated statements of operations related to the change in the fair value of our interest rate swaps. For each of the three and nine months ended September 30, 2018, $70,000 is included as an increase in interest expense on our consolidated statements of operations related to the change in the fair value of our interest rate swaps.

Credit-Risk-Related Contingent Features

Each of our interest rate swap agreements contained a provision under which we could also be declared in default under such agreements if we defaulted on the revolving credit facility or if we defaulted on the term loan facility. As of March 11, 2019, the date of termination of such swaps, and December 31, 2018, there have been no events of default under our interest rate swap agreements.

Impact of Hedges on AOCI and Consolidated Statements of Operations

The changes in the balance of each component of AOCI related to our interest rate swaps designated as cash flow hedges are as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019			2018
	(in thousands)
Accumulated other comprehensive income, at beginning of period	$	—	$	3,221		$	1,806		$	1,631
Other comprehensive income before reclassifications	—		214			—			1,973
Amounts reclassified to accumulated other comprehensive income (1)	—		(397		)	(1,806		)	(566		)
Net current period other comprehensive income	—		(183		)	(1,806		)	1,407
Accumulated other comprehensive income, at end of period	$	—	$	3,038		$	—		$	3,038


(1)	The amounts from AOCI were reclassified as a decrease to interest expense in our consolidated statements of operations.

Reclassifications from AOCI

As of July 31, 2018, the hedged forecasted transaction was no longer probable of occurring so the interest rate swaps were no longer eligible for hedge accounting and all future changes in fair value of the interest rate swaps were recorded in interest expense on our consolidated statements of operations and no further amounts were deferred into AOCI. The balance in AOCI as of July 31, 2018 was reclassified to earnings as an adjustment to interest expense on our consolidated statements of operations as the originally designated forecasted transaction affected earnings. On March 11, 2019, the remaining balance in AOCI was reclassified to earnings as a decrease to interest expense on our consolidated statements of operations in connection with the termination of our two remaining interest rate swaps.

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

We determine the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. 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.

Our derivative financial instruments (Note 12) were measured at fair value on a recurring basis and were presented on our consolidated balance sheets at fair value, on a gross basis, excluding accrued interest. The table below presents the fair value of our derivative financial instruments as well as their classification on our consolidated balance sheets:

September 30, 2019

December 31, 2018

Level

Balance Sheet
Location

(in thousands)

Assets:

Interest rate swaps

—

1,630

Other assets

Interest Rate Swaps—We estimated the fair value of our interest rate swaps by calculating the credit-adjusted present value of the expected future cash flows of each swap. The calculation incorporated the contractual terms of the derivatives, observable market interest rates which we considered to be Level 2 inputs, and credit risk adjustments, if any, to reflect the counterparty's as well as our own nonperformance risk.

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



	September 30, 2019				December 31, 2018
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Level
	(in thousands)
Assets:
SBA 7(a) loans receivable, subject to loan-backed notes	$	31,404	$	32,658	$	37,031	$	38,357	3
SBA 7(a) loans receivable, subject to credit risk	26,257		27,310		29,748		30,630		3
SBA 7(a) loans receivable, subject to secured borrowings	13,915		14,015		16,469		16,706		3
Liabilities:
Mortgages payable (1)	96,919		101,258		386,923		377,364		3
Junior subordinated notes	25,278		24,410		25,215		24,462		3


(1)	The December 31, 2018 carrying amount and estimated fair value of mortgages payable exclude one mortgage loan with carrying value of $28,018,000 that had been classified as liabilities associated with assets held for sale, net, on our consolidated balance sheet at December 31, 2018 (Notes 3 and 7).

Management's estimation of the fair value of our financial instruments other than our interest rate swaps 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 based on unobservable inputs for valuation purposes since there are no Level 1 or Level 2 inputs 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 are made at a point in time and may not be indicative of the amounts we could realize in a current market exchange.

The carrying amounts of our secured borrowings—government guaranteed loans, SBA 7(a) loan-backed notes and revolving credit facility approximate their fair values, as the interest rates on these securities are variable and approximate current market interest rates.

SBA 7(a) Loans Receivable, Subject to Loan-Backed Notes—These loans receivable represent the unguaranteed portions of loans originated under the SBA 7(a) Program which were transferred to a trust and are held as collateral in connection with a securitization transaction. The proceeds from the transfer have been recorded as SBA 7(a) loan-backed notes payable. In order to determine the estimated fair value of these loans receivable, we use a present value technique for the anticipated future cash flows using certain assumptions. At September 30, 2019, our assumptions included discount rates ranging from 7.25% to 9.00% and prepayment rates ranging from 12.10% to 17.50%. At December 31, 2018, our assumptions included discount rates ranging from 6.75% to 9.25% and prepayment rates ranging from 9.59% to 17.50%.

SBA 7(a) 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. At September 30, 2019, our assumptions included discount rates ranging from 6.75% to 9.50% and prepayment rates ranging from 8.03% to 17.50%. At December 31, 2018, our assumptions included discount rates ranging from 6.75% to 9.75% and prepayment rates ranging from 4.91% to 17.50%.

SBA 7(a) Loans Receivable, Subject to Secured Borrowings—These loans receivable represent the government guaranteed portion of loans which were sold with the proceeds received from the sale reflected as secured borrowings—government guaranteed loans. 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. At September 30, 2019, our assumptions included discount rates ranging from 8.50% to 9.25% and prepayment rates ranging from and 10.29% to 17.50%. At December 31, 2018, our assumptions included discount rates ranging from 8.75% to 9.50% and prepayment rates ranging from and 10.29% to 17.50%.

Mortgages Payable—The fair values of mortgages payable 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 a rate of 3.44% at September 30, 2019, and rates ranging from 4.62% to 4.64% at December 31, 2018.

Junior Subordinated Notes—The fair value of the junior subordinated notes is estimated based on 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 6.34% and 7.05% at September 30, 2019 and December 31, 2018, respectively.

RELATED-PARTY TRANSACTIONS

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

9 Months Ended

Sep. 30, 2019

Asset Management and Other Fees to Related Parties

In December 2015, CIM Urban and CIM Investment Advisors, LLC, an affiliate of CIM REIT and CIM Group, entered into an investment management agreement, pursuant to which CIM Urban engaged CIM Investment Advisors, LLC to provide certain services to CIM Urban (the “Investment Management Agreement”). CIM Investment Advisors, LLC changed its name to CIM Capital, LLC in December 2018, and, on January 1, 2019, assigned its duties under the Investment Management Agreement to its four wholly-owned subsidiaries: CIM Capital Securities Management, LLC, a securities manager, CIM Capital RE Debt Management, LLC, a debt manager, CIM Capital Controlled Company Management, LLC, a controlled company manager, and CIM Capital Real Property Management, LLC, a real property manager. The "Operator" refers to CIM Investment Advisors, LLC from December 10, 2015 to December 31, 2018 and to CIM Capital, LLC and its four wholly-owned subsidiaries on and after January 1, 2019.

CIM Urban pays asset management fees to the Operator on a quarterly basis in arrears. The fee is calculated as a percentage of the daily average adjusted fair value of CIM Urban's assets:



Daily Average Adjusted Fair Value of CIM Urban's Assets
Daily Average Adjusted Fair Value of CIM Urban's Assets				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 Operator earned asset management fees of $2,424,000 and $4,475,000 for the three months ended September 30, 2019 and 2018, respectively, and $9,669,000 and $13,350,000 for the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019 and December 31, 2018, asset management fees of $2,457,000 and $4,540,000, respectively, were due to the Operator.

CIM Management, Inc. and certain of its affiliates (collectively, the "CIM Management Entities"), all affiliates of CIM REIT and CIM Group, 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 $494,000 and $1,084,000 for the three months ended September 30, 2019 and 2018, respectively, and $2,106,000 and $3,289,000 for the nine months ended September 30, 2019 and 2018, respectively. CIM Urban also reimbursed the CIM Management Entities $837,000 and $1,256,000 for the three months ended September 30, 2019 and 2018, respectively, and $3,873,000 and $4,523,000 for the nine months ended September 30, 2019 and 2018, respectively, for onsite management costs incurred on behalf of CIM Urban, which are included in rental and other property operating expenses. The CIM Management Entities earned leasing commissions of $32,000 and $67,000 for the three months ended September 30, 2019 and 2018, respectively, and $610,000 and $286,000 for the nine months ended September 30, 2019 and 2018, respectively, which were capitalized to deferred charges. In addition, the CIM Management Entities earned construction management fees of $160,000 and $65,000 for the three months ended September 30, 2019 and 2018, respectively, and $329,000 and $506,000 for the nine months ended September 30, 2019 and 2018, respectively, which were capitalized to investments in real estate.

At September 30, 2019 and December 31, 2018, fees payable and expense reimbursements due to the CIM Management Entities of $2,454,000 and $3,202,000, respectively, are included in due to related parties. Also included in due from and to related parties as of September 30, 2019 and December 31, 2018, were $40,000 due from and $315,000 due to, respectively, the CIM Management Entities and certain of its affiliates.

On March 11, 2014, CIM Commercial and its subsidiaries entered into a master services agreement (the "Master Services Agreement") with CIM Service Provider, LLC (the "Administrator"), an affiliate of CIM Group, pursuant to which the Administrator has agreed to provide, or arrange for other service providers to provide, management and administration services to CIM Commercial and its subsidiaries. Pursuant to the Master Services Agreement, we appointed an affiliate of CIM Group as the administrator of Urban Partners GP, LLC. Under the Master Services Agreement, CIM Commercial pays a base service fee (the "Base Service Fee") to the Administrator initially set at $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 Administrator earned a Base Service Fee of $275,000 and $270,000 for the three months ended September 30, 2019 and 2018, respectively, and $827,000 and $809,000 for the nine months ended September 30, 2019 and 2018, respectively. In addition, pursuant to the terms of the Master Services Agreement, the Administrator may receive compensation and or reimbursement for performing certain services for CIM Commercial and its subsidiaries that are not covered under the Base Service Fee. During the nine months ended September 30, 2019 and 2018, such services performed by the Administrator and its affiliates included accounting, tax, reporting, internal audit, legal, compliance, risk management, IT, human resources, corporate communications, and from and after September 2018, operational and on-going support in connection with our offering of Series A Preferred Units. The Administrator's compensation is based on the salaries and benefits of the employees of the Administrator 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). We expensed $572,000 and $583,000 for the three months ended September 30, 2019 and 2018, respectively, and $1,630,000 and $2,138,000 for the nine months ended September 30, 2019 and 2018, respectively, for such services which are included in asset management and other fees to related parties. At September 30, 2019 and December 31, 2018, $1,175,000 and $1,490,000 was due to the Administrator, respectively, for such services.

On January 1, 2015, we entered into a Staffing and Reimbursement Agreement with CIM SBA Staffing, LLC ("CIM SBA"), an affiliate of CIM Group, and our subsidiary, PMC Commercial Lending, LLC. The agreement provides that CIM SBA will provide personnel and resources to us and that we will reimburse CIM SBA for the costs and expenses of providing such personnel and resources. For the three months ended September 30, 2019 and 2018, we incurred expenses related to services subject to reimbursement by us under this agreement of $652,000 and $740,000, respectively, which are included in asset management and other fees to related parties for lending segment costs, and $58,000 and $53,000, respectively, for corporate services, which are included in asset management and other fees to related parties. For the nine months ended September 30, 2019 and 2018, we incurred expenses related to such services of $1,840,000 and $1,980,000, respectively, which are included in asset management and other fees to related parties for lending segment costs, and $189,000 and $198,000, respectively, for corporate services, which are included in asset management and other fees to related parties. In addition, we deferred personnel costs of $38,000 and $97,000 for the three months ended September 30, 2019 and 2018, respectively, and $82,000 and $233,000 for the nine months ended September 30, 2019 and 2018, respectively, associated with services provided for originating loans. At September 30, 2019 and December 31, 2018, $563,000 and $1,347,000, respectively, was due to CIM SBA for costs and expenses of providing such personnel and resources.

On May 10, 2018, the Company executed a wholesaling agreement (the "Wholesaling Agreement") with International Assets Advisors, LLC ("IAA") and CCO Capital, LLC ("CCO Capital"). IAA was the exclusive dealer manager for the Company’s public offering of Series A Preferred Units until May 31, 2019. CCO Capital is a registered broker dealer and is under common control with the Operator and the Administrator. Under the Wholesaling Agreement, among other things, CCO Capital, in its capacity as the wholesaler for the offering, assisted IAA with the sale of Series A Preferred Units. In exchange for such services, IAA paid CCO Capital a fee equal to 2.75% of the selling price of each Series A Preferred Unit for which a sale was completed, reduced by any applicable fee reallowances payable to soliciting dealers pursuant to separate soliciting dealer agreements between IAA and soliciting dealers. The foregoing fee was reduced, and could have been exceeded, by a fixed monthly payment by CCO Capital to IAA for IAA’s services in connection with periodic closings and settlements for the offering.

On May 31, 2019, the Company, IAA and CCO Capital entered into an Amendment, Assignment and Assumption Agreement (the “Assignment Agreement”), pursuant to which CCO Capital assumed all of the rights and obligations of IAA under the dealer manager agreement, dated as of June 28, 2016, as amended, by and between the Company and IAA. As a result of the Assignment Agreement, CCO Capital became the exclusive dealer manager for the Company’s public offering of the Series A Preferred Units effective as of May 31, 2019. In connection with the execution of the Assignment Agreement, the Company terminated the Wholesaling Agreement effective as of May 31, 2019. At September 30, 2019 and December 31, 2018, $503,000 and $200,000, respectively, was included in deferred costs for CCO Capital fees, of which $131,000 and $138,000, respectively, was included in due to related parties. CCO Capital incurred issuance-specific costs of $337,000 and $439,000, which were allocated to the Series A Preferred Stock for the three and nine months ended September 30, 2019, respectively.

Other

On October 1, 2015, an affiliate of CIM Group entered into a 5-year lease renewal with respect to a property owned by the Company, which lease was amended to a month-to-month term in February 2019. We recorded rental and other property income related to this tenant of $28,000 and $27,000 for the three months ended September 30, 2019 and 2018, respectively, and $83,000 and $81,000 for the nine months ended September 30, 2019 and 2018, respectively.

On May 15, 2019, CIM Group entered into an approximately eleven-year lease for approximately 32,000 rentable square feet with respect to a property owned by the Company. The lease was amended on August 7, 2019 to reduce the rentable square feet to approximately 30,000 rentable square feet. For the three and nine months ended September 30, 2019, we recorded rental and other property income related to this tenant of $356,000 and $562,000, respectively.

In October 2019, our Administrator acquired 2,468,390 shares of our Common Stock, representing approximately 16.9% of the outstanding shares of our Common Stock, for $19.1685 per share from an affiliate of CIM Group in a private transaction. As of the date hereof, CIM Group, its affiliates, and our officers and directors have an aggregate economic interest in approximately 19.2% of the outstanding shares of our Common Stock.

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	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 to fund loans were $14,452,000 at September 30, 2019 and are for prime-based loans to be originated by our subsidiary engaged in SBA 7(a) Program lending, 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. CIM Commercial had a total of $8,827,000 in future obligations under leases to fund tenant improvements and other future construction obligations at September 30, 2019. At September 30, 2019, $2,813,000 was funded to reserve accounts included in restricted cash on our consolidated balance sheet for these tenant improvement obligations in connection with the mortgage loan agreement entered into in June 2016. Employment Agreements—We have employment agreements with two of our officers. Under certain circumstances, each of these employment agreements provides for (1) severance payment equal to the annual base salary paid to the officer and (2) death and disability payments in an amount equal to two times and one time, respectively, the annual base salary paid to the officers. Litigation—We are not currently involved in any material pending or threatened legal proceedings nor, to our knowledge, are any material legal proceedings currently threatened against us, other than routine litigation arising in the ordinary course of business. 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. While the outcome of these legal actions and proceedings cannot be predicted with certainty, in management's opinion, the resolution of these legal proceedings and actions will not have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. In September 2018, we filed a lawsuit against the City and County of San Francisco seeking a refund of the $11,845,000 in penalties, interest and legal fees paid by us for real property transfer tax allegedly due for a transaction in a prior year. We disputed that such penalties, interest and legal fees were payable but, in order to contest the asserted tax obligations, we had to pay such amounts to the City and County of San Francisco in August 2017. We intend to vigorously pursue this litigation. A subsidiary of the Company is a defendant in a lawsuit in connection with injuries sustained by a third-party contractor at a property previously owned by such subsidiary. While it is possible that a loss may be incurred, we are unable to estimate a range of potential losses due to the complexity and current status of the lawsuit. However, we maintain insurance coverage to mitigate the impact of adverse exposures in lawsuits of this nature and do not expect this lawsuit to have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. 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 business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. 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 business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. Rent Expense—We lease office space in Dallas, Texas under a lease which, as amended, expires in May 2020. In determining whether this contract constitutes a lease, we determined that the office space is explicitly identified in the contract. Additionally, so long as payments are made timely under this lease, we as the tenant have the right to obtain substantially all the economic benefits from the use of this identified asset and can direct how and for what purpose the office space is used to conduct our operations. As of September 30, 2019, the right-of-use asset and lease liability balance was approximately $170,000. The right-of-use asset is included within other assets and the lease liability is included within other liabilities on our consolidated balance sheet. We recorded rent expense of $69,000 and $65,000 for the three months ended September 30, 2019 and 2018, respectively, and $224,000 and $182,000 for the nine months ended September 30, 2019 and 2018, respectively, in general and administrative expenses on our consolidated statements of operations. At September 30, 2019, our scheduled future noncancelable minimum lease payments were $64,000 for the three months ending December 31, 2019 and $106,000 for the year ending December 31, 2020.

FUTURE MINIMUM LEASE RENTALS

9 Months Ended

Sep. 30, 2019

Leases, Operating [Abstract]

FUTURE MINIMUM LEASE RENTALS

Future minimum rental revenue under long-term operating leases at September 30, 2019, excluding tenant reimbursements of certain costs, are as follows:



Years Ending December 31,	Total
	(in thousands)
2019 (Three months ending December 31, 2019)	$	12,237
2020	46,706
2021	40,832
2022	37,465
2023	34,370
Thereafter	83,981
	$	255,591

CONCENTRATIONS

9 Months Ended

Sep. 30, 2019

Risks and Uncertainties [Abstract]

CONCENTRATIONS

Tenant Revenue Concentrations—Rental and other property income from Kaiser Foundation Health Plan, Incorporated ("Kaiser"), which occupied space in two of our Oakland, California properties, accounted for approximately 22.2% and 13.1% of our office segment revenues for the three months ended September 30, 2019 and 2018, respectively, and 15.6% and 13.0% for the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019 and December 31, 2018, $132,000 and $331,000, respectively, was due from Kaiser.

Rental and other property income from the U.S. General Services Administration and other government agencies (collectively, "Governmental Tenants"), which primarily occupied space in our properties located in Washington, D.C., accounted for approximately 11.2% and 25.3% of our office segment revenues for the three months ended September 30, 2019 and 2018, respectively, and 20.0% and 25.4% for the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019 and December 31, 2018, $768,000 and $2,899,000, respectively, was due from Governmental Tenants.

Geographical Concentrations of Investments in Real Estate—As of September 30, 2019 and December 31, 2018, we owned 8 and 16 office properties, respectively, one hotel property, one and two parking garages, respectively, and one and two development sites, respectively, one of which is being used as a parking lot. These properties are located in two states and Washington, D.C.

Our revenue concentrations from properties are as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
California	84.1	%	76.2	%	77.7	%	76.9	%
Texas	7.4		3.5		5.1		3.3
Washington, D.C.	8.5		20.3		17.2		19.8
	100.0	%	100.0	%	100.0	%	100.0	%

Our real estate investments concentrations from properties are as follows:



	September 30, 2019		December 31, 2018
California (1)	94.8	%	70.6	%
Texas	5.2		2.2
Washington, D.C.	—		27.2
	100.0	%	100.0	%


(1)	The December 31, 2018 percentage for California includes the assets of 260 Townsend Street, which was classified as held for sale on our consolidated balance sheet at December 31, 2018 and sold in March 2019 (Note 3).

SEGMENT DISCLOSURE

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

SEGMENT DISCLOSURE

In accordance with ASC Topic 280, Segment Reporting, our reportable segments during the three and nine months ended September 30, 2019 and 2018 consist of two types of commercial real estate properties, namely, office and hotel, as well as a segment for our lending business. 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, and 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 our audited consolidated financial statements for the year ended December 31, 2018 included in our Annual Report on Form 10-K filed with the SEC on March 18, 2019.

For our real estate segments, we define net operating income as rental and other property income and expense reimbursements less property related expenses, and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, gain (loss) on early extinguishment of debt, impairment of real estate, transaction costs, and provision for income taxes. For our lending segment, we define net operating income as interest income net of interest expense and general overhead expenses.

The net operating income of our segments for the three and nine months ended September 30, 2019 and 2018 is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in thousands)
Office:
Revenues	$	16,885	$	36,440	$	72,380	$	109,141
Property expenses:
Operating	7,205		14,459		29,677		39,770
General and administrative	41		83		397		1,062
Total property expenses	7,246		14,542		30,074		40,832
Segment net operating income—office	9,639		21,898		42,306		68,309
Hotel:
Revenues	8,511		8,542		29,430		29,980
Property expenses:
Operating	6,081		5,946		19,520		19,316
General and administrative	31		—		108		18
Total property expenses	6,112		5,946		19,628		19,334
Segment net operating income—hotel	2,399		2,596		9,802		10,646
Lending:
Revenues	2,411		2,625		8,312		8,324
Lending expenses:
Interest expense	365		633		1,483		1,117
Fees to related party	652		740		1,840		1,980
General and administrative	505		414		1,343		1,273
Total lending expenses	1,522		1,787		4,666		4,370
Segment net operating income—lending	889		838		3,646		3,954
Total segment net operating income	$	12,927	$	25,332	$	55,754	$	82,909

A reconciliation of our segment net operating income to net income attributable to the Company for the three and nine months ended September 30, 2019 and 2018 is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in thousands)
Total segment net operating income	$	12,927		$	25,332		$	55,754		$	82,909
Interest and other income	1,408			—			3,226			—
Asset management and other fees to related parties	(3,329		)	(5,381		)	(12,315		)	(16,495		)
Interest expense	(2,038		)	(6,332		)	(7,515		)	(19,292		)
General and administrative	(807		)	(708		)	(2,945		)	(4,143		)
Transaction costs	(340		)	(15		)	(600		)	(359		)
Depreciation and amortization	(5,180		)	(13,310		)	(21,995		)	(39,783		)
Loss on early extinguishment of debt	—			—			(29,982		)	—
Impairment of real estate	—			—			(69,000		)	—
Gain on sale of real estate	302			—			433,104			—
Income (loss) before provision for income taxes	2,943			(414		)	347,732			2,837
Provision for income taxes	(87		)	(115		)	(686		)	(795		)
Net income (loss)	2,856			(529		)	347,046			2,042
Net (income) loss attributable to noncontrolling interests	(8		)	1			165			(15		)
Net income (loss) attributable to the Company	$	2,848		$	(528	)	$	347,211		$	2,027

The condensed assets for each of the segments as of September 30, 2019 and December 31, 2018, along with capital expenditures and loan originations for the nine months ended September 30, 2019 and 2018, are as follows:



	September 30, 2019		December 31, 2018
	(in thousands)
Condensed assets:
Office (1)	$	458,979	$	1,094,269
Hotel	105,478		105,845
Lending	84,588		97,465
Non-segment assets	10,807		44,822
Total assets	$	659,852	$	1,342,401



	Nine Months Ended September 30,
	2019		2018
	(in thousands)
Capital expenditures (2):
Office (1)	$	9,500	$	11,462
Hotel	1,846		1,343
Total capital expenditures	11,346		12,805
Loan originations	27,421		53,320
Total capital expenditures and loan originations	$	38,767	$	66,125


(1)	The December 31, 2018 balances include the assets of 260 Townsend Street, which was classified as held for sale on our consolidated balance sheet at December 31, 2018 and sold in March 2019 (Note 3).


(2)	Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates.

PRO FORMA FINANCIAL INFORMATION

9 Months Ended

Sep. 30, 2019

Accounting Changes and Error Corrections [Abstract]

PRO FORMA FINANCIAL INFORMATION

The table set forth below summarizes, on a pro forma basis, the revenue, net income (loss), net income (loss) attributable to the Company, net (loss) income attributable to common stockholders, and basic and diluted per-share amounts for net (loss) income attributable to common stockholders for the three and nine months ended September 30, 2019 and 2018, after giving effect to the disposition of the Union Square Properties, which was completed on July 30, 2019, as if the transaction had occurred on January 1, 2018.

This pro forma information does not purport to represent what the actual revenue, net income (loss), net income (loss) attributable to the Company, net (loss) income attributable to common stockholders, and basic and diluted per-share amounts for net (loss) income attributable to common stockholders would have been for the periods indicated, nor does it purport to predict the results of operations for future periods. Other than with respect to the sale of the Union Square Properties, the pro forma information does not reflect other events affecting the Company, including the sales of other properties, and other events described in "Item 2 —Management's Discussion and Analysis of Financial Condition and Results of Operations— Program to Unlock Embedded Value in Our Portfolio and Improve Trading Liquidity of Our Common Stock."



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019		2018
	(in thousands, except per share amounts)
Pro forma revenue	$	27,047		$	41,193		$	97,971	$	128,074
Pro forma net income (loss)	1,513			(1,124		)	412,341		102
Pro forma net income (loss) attributable to the Company	1,510			(1,131		)	412,310		65
Pro forma net (loss) income attributable to common stockholders	(2,960		)	(5,051		)	399,368		(11,312		)
Pro forma net (loss) income attributable to common stockholders per share, basic	$	(0.20	)	$	(0.35	)	$	27.36	$	(0.77	)
Pro forma net (loss) income attributable to common stockholders per share, diluted	$	(0.20	)	$	(0.35	)	$	25.36	$	(0.77	)

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

9 Months Ended

Sep. 30, 2019

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.

Derivative Financial Instruments

Revenue Recognition

Revenue from leasing activities

Revenue from lending activities

Revenue from hotel activities


•	cancellable and noncancelable room revenues from reservations and


•	ancillary services including facility usage and food or beverage.

At inception of these contracts with customers for hotel revenues, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate.

Tenant recoveries outside of the lease agreements

Loans Receivable

Deferred Rent Receivable and Charges

Redeemable Preferred Stock

Noncontrolling Interests

Noncontrolling Interests—Noncontrolling interests represent the interests in various properties owned by third-parties.

Restricted Cash

Reclassifications

Assets Held for Sale and Discontinued Operations

Consolidation Considerations for Our Investments in Real Estate

Use of Estimates

Recently Issued Accounting Pronouncements

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

9 Months Ended

Sep. 30, 2019

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Useful Lives of Real Estate

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

Schedule of Recognized Rental Income

For the three and nine months ended September 30, 2019 and 2018, we recognized rental income as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in thousands)
Rental and other property income
Fixed lease payments (1)	$	15,389	$	34,108	$	66,925	$	101,423
Variable lease payments (2)	1,917		2,498		6,381		8,152
Rental and other property income	$	17,306	$	36,606	$	73,306	$	109,575


(1)	Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives.


(2)	Variable lease payments include expense reimbursements billed to tenants and percentage rent, net of bad debt expense from our operating leases.

Reconciliation of Hotel Revenue

Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 18:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in thousands)
Hotel properties
Hotel income	$	7,734	$	7,715	$	27,087	$	27,564
Rental and other property income	736		777		2,208		2,273
Interest and other income	41		50		135		143
Hotel revenues	$	8,511	$	8,542	$	29,430	$	29,980

ACQUISITIONS AND DISPOSITIONS (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Schedule of Assets Sold and Held for Sale

The following is the detail of the carrying amounts of assets and liabilities

at the time of the sales of the properties that occurred during the nine months ended September 30, 2019:



	(in thousands)
Assets
Investments in real estate, net	$	476,532
Deferred rent receivable and charges, net	55,297
Other intangible assets, net	316
Other assets	4,096
Total assets	$	536,241
Liabilities
Debt, net (1) (2)	$	318,072
Total liabilities	$	318,072


(1)	Debt is presented net of deferred loan costs of $1,704,000 and accumulated amortization of $576,000.

(2)

The following is the detail of the carrying amounts of assets and liabilities for the office properties that are classified as held for sale on our consolidated balance sheet as of December 31, 2018:



	December 31, 2018
	(in thousands)
Assets
Investments in real estate, net (1)	$	17,123
Cash and cash equivalents	755
Accounts receivable, net	41
Deferred rent receivable and charges, net (2)	4,009
Other intangible assets, net (3)	220
Other assets	27
Total assets held for sale, net	$	22,175
Liabilities
Debt, net (4)	$	28,018
Accounts payable and accrued expenses	370
Due to related parties	81
Other liabilities	297
Total liabilities associated with assets held for sale, net	$	28,766


(1)	Investments in real estate of $24,832,000 is presented net of accumulated depreciation of $7,709,000.


(2)	Deferred rent receivable and charges consist of deferred rent receivable of $2,909,000 and deferred leasing costs of $1,669,000 net of accumulated amortization of $569,000.


(3)	Other intangible assets, net, represent acquired in-place leases of $1,778,000, which are presented net of accumulated amortization of $1,558,000.


(4)	Debt, net, includes the outstanding principal balance of 260 Townsend Street of $28,200,000, net of deferred loan costs of $243,000 and accumulated amortization of $61,000.



Property	Asset Type	Date of Sale	Square Feet	Sales Price		Transaction Costs		Gain on Sale
				(in thousands)
March Oakland Properties, Oakland, CA (1)	Office / Parking Garage	March 1, 2019	975,596	$	512,016	$	8,971	$	289,779
830 1st Street, Washington, D.C.	Office	March 1, 2019	247,337	116,550		2,438		45,710
260 Townsend Street, San Francisco, CA	Office	March 14, 2019	66,682	66,000		2,539		42,092
1333 Broadway, Oakland, CA	Office	May 16, 2019	254,523	115,430		658		55,221
Union Square Properties, Washington, D.C. (2)	Office / Land	July 30, 2019	630,650	181,000		3,744		302
				$	990,996	$	18,350	$	433,104


(1)	The "March Oakland Properties" consist of 1901 Harrison Street, 2100 Franklin Street, 2101 Webster Street, and 2353 Webster Street Parking Garage.

(2)

Schedule of Asset Acquisitions



Property	Asset Type	Date of Acquisition	Square Feet	Purchase Price (1)
				(in thousands)
9460 Wilshire Boulevard, Beverly Hills, CA	Office	January 18, 2018	91,750	$	132,000


(1)	In December 2017, at the time we entered into the purchase and sale agreement, we made a $20,000,000 non-refundable deposit to an escrow account that was included in other assets on our consolidated balance sheet at December 31, 2017. Transaction costs that were capitalized in connection with the acquisition of this property totaled $48,000, which are not included in the purchase price above.

Schedule of Fair Value of Net Assets Acquired

The fair value of the net assets acquired for the aforementioned acquisition during the nine months ended September 30, 2018 are as follows:



	(in thousands)
Land	$	52,199
Land improvements	756
Buildings and improvements	74,522
Tenant improvements	1,451
Acquired in-place leases (1)	7,003
Acquired above-market leases (1)	109
Acquired below-market leases (1)	(3,992		)
Net assets acquired	$	132,048


(1)	Acquired in-place leases, above-market leases, and below-market leases have weighted average amortization periods of 3 years, 2 years, and 3 years, respectively.

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Investments in Real Estate

INVESTMENTS IN REAL ESTATE (Tables)

9 Months Ended

Sep. 30, 2019

Real Estate [Abstract]

Investments in real estate consist of the following:



	September 30, 2019			December 31, 2018
	(in thousands)
Land	$	134,421		$	266,410
Land improvements	2,713			18,368
Buildings and improvements	437,833			912,892
Furniture, fixtures, and equipment	3,724			4,245
Tenant improvements	32,807			133,487
Work in progress	12,152			9,234
Investments in real estate	623,650			1,344,636
Accumulated depreciation	(117,684		)	(303,699		)
Net investments in real estate	$	505,966		$	1,040,937

LOANS RECEIVABLE (Tables)

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Schedule of Loans Receivable

Loans receivable consist of the following:



	September 30, 2019			December 31, 2018
	(in thousands)
SBA 7(a) loans receivable, subject to loan-backed notes	$	31,565		$	36,847
SBA 7(a) loans receivable, subject to credit risk	25,670			29,385
SBA 7(a) loans receivable, subject to secured borrowings	13,876			16,409
Loans receivable	71,111			82,641
Deferred capitalized costs	1,147			1,309
Loan loss reserves	(682		)	(702		)
Loans receivable, net	$	71,576		$	83,248

OTHER INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Liabilities and Related Accumulated Amortization and Accretion

A schedule of our intangible assets and liabilities and related accumulated amortization and accretion as of September 30, 2019 and December 31, 2018 is as follows:



	Assets								Liabilities
September 30, 2019	Acquired Above-Market Leases			Acquired In-Place Leases			Trade Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	74		$	13,653		$	2,957	$	(3,521	)
Accumulated amortization	(38		)	(8,906		)	—		1,959
	$	36		$	4,747		$	2,957	$	(1,562	)
Average useful life (in years)	5			8			Indefinite		4



	Assets								Liabilities
December 31, 2018	Acquired Above-Market Leases			Acquired In-Place Leases			Trade Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	146		$	16,210		$	2,957	$	(6,618	)
Accumulated amortization	(51		)	(9,731		)	—		3,746
	$	95		$	6,479		$	2,957	$	(2,872	)
Average useful life (in years)	3			8			Indefinite		4

Schedule of Future Amortization and Accretion of Acquisition Related Intangible Assets

A schedule of future amortization and accretion of acquisition related intangible assets and liabilities as of September 30, 2019, is as follows:



	Assets				Liabilities
Years Ending December 31,	Acquired Above-Market Leases		Acquired In-Place Leases		Acquired Below-Market Leases
	(in thousands)
2019 (Three months ending December 31, 2019)	$	4	$	476	$	(280	)
2020	9		1,349		(701		)
2021	5		899		(347		)
2022	5		663		(234		)
2023	6		375		—
Thereafter	7		985		—
	$	36	$	4,747	$	(1,562	)

DEBT (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of Debt

Information on our debt is as follows:



	September 30, 2019			December 31, 2018
	(in thousands)
Mortgage loan with a fixed interest rate of 4.14% per annum, with monthly payments of interest only, and a balance of $97,100,000 due on July 1, 2026. The loan is nonrecourse. On March 1, 2019, mortgage loans with an aggregate outstanding principal balance of $205,500,000 were legally defeased in connection with the sale of the properties that were collateral for the loans. On May 16, 2019, one loan with an outstanding principal balance of $39,500,000 was legally defeased in connection with the sale of the property that was collateral for the loan.	$	97,100		$	342,100
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 had a $42,008,000 balance due on January 5, 2027. The loan was nonrecourse. On March 1, 2019, the mortgage loan was prepaid in connection with the sale of the property that was collateral for the loan.	—			46,000
	97,100			388,100
Deferred loan costs related to mortgage loans	(181		)	(1,177		)
Total Mortgages Payable	96,919			386,923
Secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 6.21% and 5.89% at September 30, 2019 and December 31, 2018, respectively.	8,935			11,283
Secured borrowing principal on SBA 7(a) loans sold for excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.82% and 3.57% at September 30, 2019 and December 31, 2018, respectively.	4,353			4,482
	13,288			15,765
Unamortized premiums	727			940
Total Secured Borrowings—Government Guaranteed Loans	14,015			16,705
Revolving credit facility	68,500			130,000
SBA 7(a) loan-backed notes with a variable interest rate which resets monthly based on the lesser of the one-month LIBOR plus 1.40% or the prime rate less 1.08%, with payments of interest and principal due monthly. Balance due at maturity in March 20, 2043.	26,144			33,769
Junior subordinated notes with a variable interest rate which resets quarterly based on the three-month LIBOR plus 3.25%, with quarterly interest only payments. Balance due at maturity on March 30, 2035.	27,070			27,070
	121,714			190,839
Deferred loan costs related to other debt	(3,129		)	(3,941		)
Discount on junior subordinated notes	(1,792		)	(1,855		)
Total Other Debt	116,793			185,043
Total Debt	$	227,727		$	588,671

Future Principal Payments on Debt

Future principal payments on our debt (face value) at September 30, 2019 are as follows:



Years Ending December 31,	Mortgages Payable		Secured Borrowings Principal (1)		Other (1) (2)		Total
	(in thousands)
2019 (Three months ending December 31, 2019)	$	—	$	128	$	1,351	$	1,479
2020	—		529		1,844		2,373
2021	—		557		1,893		2,450
2022	—		588		70,443		71,031
2023	—		620		2,000		2,620
Thereafter	97,100		10,866		44,183		152,149
	$	97,100	$	13,288	$	121,714	$	232,102

(1)


(2)	Represents the junior subordinated notes, SBA 7(a) loan-backed notes, and revolving credit facility.

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.

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Reconciliation of the Numerator and Denominator Used in Computing Basic and Diluted Per-share Computations

EARNINGS PER SHARE ("EPS") (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019		2018
	(in thousands, except per share amounts)
Numerator:
Net (loss) income attributable to common stockholders	$	(1,622	)	$	(4,448	)	$	334,269	$	(9,350	)
Redeemable preferred stock dividends declared on dilutive shares	—			—			1,917		—
Diluted net (loss) income attributable to common stockholders	$	(1,622	)	$	(4,448	)	$	336,186	$	(9,350	)
Denominator:
Basic weighted average shares of Common Stock outstanding	14,598			14,598			14,598		14,597
Effect of dilutive securities—contingently issuable shares	1			—			1,227		—
Diluted weighted average shares and common stock equivalents outstanding	14,599			14,598			15,825		14,597
Net (loss) income attributable to common stockholders per share:
Basic	$	(0.11	)	$	(0.30	)	$	22.90	$	(0.64	)
Diluted	$	(0.11	)	$	(0.30	)	$	21.24	$	(0.64	)

REDEEMABLE PREFERRED STOCK (Tables)

9 Months Ended

Sep. 30, 2019

Temporary Equity Disclosure [Abstract]

Dividends Declared

Cash dividends declared on our Series A Preferred Stock for the nine months ended September 30, 2019 and 2018 consist of the following:



Declaration Date	Payment Date	Number of Shares	Cash Dividends Declared
			(in thousands)
August 8, 2019	October 15, 2019	4,091,980	$	1,318
June 4, 2019	July 15, 2019	3,601,721	$	1,150
February 20, 2019	April 15, 2019	3,149,924	$	1,010

August 22, 2018	October 15, 2018	2,457,119	$	769
June 4, 2018	July 16, 2018	2,149,863	$	662
March 6, 2018	April 16, 2018	1,674,841	$	493

Cash dividends per share of Common Stock declared during the nine months ended September 30, 2019 and 2018 consist of the following:



Declaration Date	Payment Date	Type	Cash Dividend Per Common Share (1)
August 8, 2019	September 18, 2019	Regular Quarterly	$	0.07500
August 8, 2019	August 30, 2019	Special Cash	$	42.00000
June 4, 2019	June 27, 2019	Regular Quarterly	$	0.37500
February 20, 2019	March 25, 2019	Regular Quarterly	$	0.37500

August 22, 2018	September 25, 2018	Regular Quarterly	$	0.37500
June 4, 2018	June 28, 2018	Regular Quarterly	$	0.37500
March 6, 2018	March 29, 2018	Regular Quarterly	$	0.37500


(1)	Amounts have been adjusted to give retroactive effect to the Reverse Stock Split.

Dividends Accumulated

Accumulated cash dividends on our Series L Preferred Stock for the three and nine months ended September 30, 2019 and 2018, are included in the numerator for purposes of calculating basic and diluted net income (loss) attributable to common stockholders per share (Note 9), and consist of the following:



Accumulation Period			Dividends
Start Date	End Date	Number of Shares	Accumulated
			(in thousands)
July 1, 2019	September 30, 2019	8,080,740	$	3,152
April 1, 2019	June 30, 2019	8,080,740	$	3,152
January 1, 2019	March 31, 2019	8,080,740	$	3,152

July 1, 2018	September 30, 2018	8,080,740	$	3,152
April 1, 2018	June 30, 2018	8,080,740	$	3,152
January 1, 2018	March 31, 2018	8,080,740	$	3,152

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Dividends Declared

Cash dividends declared on our Series A Preferred Stock for the nine months ended September 30, 2019 and 2018 consist of the following:



Declaration Date	Payment Date	Number of Shares	Cash Dividends Declared
			(in thousands)
August 8, 2019	October 15, 2019	4,091,980	$	1,318
June 4, 2019	July 15, 2019	3,601,721	$	1,150
February 20, 2019	April 15, 2019	3,149,924	$	1,010

August 22, 2018	October 15, 2018	2,457,119	$	769
June 4, 2018	July 16, 2018	2,149,863	$	662
March 6, 2018	April 16, 2018	1,674,841	$	493

Cash dividends per share of Common Stock declared during the nine months ended September 30, 2019 and 2018 consist of the following:



Declaration Date	Payment Date	Type	Cash Dividend Per Common Share (1)
August 8, 2019	September 18, 2019	Regular Quarterly	$	0.07500
August 8, 2019	August 30, 2019	Special Cash	$	42.00000
June 4, 2019	June 27, 2019	Regular Quarterly	$	0.37500
February 20, 2019	March 25, 2019	Regular Quarterly	$	0.37500

August 22, 2018	September 25, 2018	Regular Quarterly	$	0.37500
June 4, 2018	June 28, 2018	Regular Quarterly	$	0.37500
March 6, 2018	March 29, 2018	Regular Quarterly	$	0.37500


(1)	Amounts have been adjusted to give retroactive effect to the Reverse Stock Split.

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Changes in the Balance of Each Component of AOCI Related to Interest Rate Swaps

The changes in the balance of each component of AOCI related to our interest rate swaps designated as cash flow hedges are as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019			2018
	(in thousands)
Accumulated other comprehensive income, at beginning of period	$	—	$	3,221		$	1,806		$	1,631
Other comprehensive income before reclassifications	—		214			—			1,973
Amounts reclassified to accumulated other comprehensive income (1)	—		(397		)	(1,806		)	(566		)
Net current period other comprehensive income	—		(183		)	(1,806		)	1,407
Accumulated other comprehensive income, at end of period	$	—	$	3,038		$	—		$	3,038


(1)	The amounts from AOCI were reclassified as a decrease to interest expense in our consolidated statements of operations.

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value and Classification of Derivative Financial Instruments

The table below presents the fair value of our derivative financial instruments as well as their classification on our consolidated balance sheets:

September 30, 2019

December 31, 2018

Level

Balance Sheet
Location

(in thousands)

Assets:

Interest rate swaps

—

1,630

Other assets

Fair Values of Financial Instrument Not Recorded at Fair Value on a Recurring Basis

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



	September 30, 2019				December 31, 2018
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Level
	(in thousands)
Assets:
SBA 7(a) loans receivable, subject to loan-backed notes	$	31,404	$	32,658	$	37,031	$	38,357	3
SBA 7(a) loans receivable, subject to credit risk	26,257		27,310		29,748		30,630		3
SBA 7(a) loans receivable, subject to secured borrowings	13,915		14,015		16,469		16,706		3
Liabilities:
Mortgages payable (1)	96,919		101,258		386,923		377,364		3
Junior subordinated notes	25,278		24,410		25,215		24,462		3


(1)	The December 31, 2018 carrying amount and estimated fair value of mortgages payable exclude one mortgage loan with carrying value of $28,018,000 that had been classified as liabilities associated with assets held for sale, net, on our consolidated balance sheet at December 31, 2018 (Notes 3 and 7).

RELATED-PARTY TRANSACTIONS (Tables)

9 Months Ended

Sep. 30, 2019

Asset Management Fees Calculation

The fee is calculated as a percentage of the daily average adjusted fair value of CIM Urban's assets:



Daily Average Adjusted Fair Value of CIM Urban's Assets
Daily Average Adjusted Fair Value of CIM Urban's Assets				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%

FUTURE MINIMUM LEASE RENTALS (Tables)

9 Months Ended

Sep. 30, 2019

Leases, Operating [Abstract]

Future Minimum Rental Revenue Under Long-Term Operating Leases

Future minimum rental revenue under long-term operating leases at September 30, 2019, excluding tenant reimbursements of certain costs, are as follows:



Years Ending December 31,	Total
	(in thousands)
2019 (Three months ending December 31, 2019)	$	12,237
2020	46,706
2021	40,832
2022	37,465
2023	34,370
Thereafter	83,981
	$	255,591

CONCENTRATIONS (Tables)

9 Months Ended

Sep. 30, 2019

Risks and Uncertainties [Abstract]

Concentration Risks From Properties

Our revenue concentrations from properties are as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
California	84.1	%	76.2	%	77.7	%	76.9	%
Texas	7.4		3.5		5.1		3.3
Washington, D.C.	8.5		20.3		17.2		19.8
	100.0	%	100.0	%	100.0	%	100.0	%

Our real estate investments concentrations from properties are as follows:



	September 30, 2019		December 31, 2018
California (1)	94.8	%	70.6	%
Texas	5.2		2.2
Washington, D.C.	—		27.2
	100.0	%	100.0	%


(1)	The December 31, 2018 percentage for California includes the assets of 260 Townsend Street, which was classified as held for sale on our consolidated balance sheet at December 31, 2018 and sold in March 2019 (Note 3).

SEGMENT DISCLOSURE (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Net Operating Income

The net operating income of our segments for the three and nine months ended September 30, 2019 and 2018 is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in thousands)
Office:
Revenues	$	16,885	$	36,440	$	72,380	$	109,141
Property expenses:
Operating	7,205		14,459		29,677		39,770
General and administrative	41		83		397		1,062
Total property expenses	7,246		14,542		30,074		40,832
Segment net operating income—office	9,639		21,898		42,306		68,309
Hotel:
Revenues	8,511		8,542		29,430		29,980
Property expenses:
Operating	6,081		5,946		19,520		19,316
General and administrative	31		—		108		18
Total property expenses	6,112		5,946		19,628		19,334
Segment net operating income—hotel	2,399		2,596		9,802		10,646
Lending:
Revenues	2,411		2,625		8,312		8,324
Lending expenses:
Interest expense	365		633		1,483		1,117
Fees to related party	652		740		1,840		1,980
General and administrative	505		414		1,343		1,273
Total lending expenses	1,522		1,787		4,666		4,370
Segment net operating income—lending	889		838		3,646		3,954
Total segment net operating income	$	12,927	$	25,332	$	55,754	$	82,909

Reconciliation of Segment Net Operating Income to Net Income Attributable to the Company

A reconciliation of our segment net operating income to net income attributable to the Company for the three and nine months ended September 30, 2019 and 2018 is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in thousands)
Total segment net operating income	$	12,927		$	25,332		$	55,754		$	82,909
Interest and other income	1,408			—			3,226			—
Asset management and other fees to related parties	(3,329		)	(5,381		)	(12,315		)	(16,495		)
Interest expense	(2,038		)	(6,332		)	(7,515		)	(19,292		)
General and administrative	(807		)	(708		)	(2,945		)	(4,143		)
Transaction costs	(340		)	(15		)	(600		)	(359		)
Depreciation and amortization	(5,180		)	(13,310		)	(21,995		)	(39,783		)
Loss on early extinguishment of debt	—			—			(29,982		)	—
Impairment of real estate	—			—			(69,000		)	—
Gain on sale of real estate	302			—			433,104			—
Income (loss) before provision for income taxes	2,943			(414		)	347,732			2,837
Provision for income taxes	(87		)	(115		)	(686		)	(795		)
Net income (loss)	2,856			(529		)	347,046			2,042
Net (income) loss attributable to noncontrolling interests	(8		)	1			165			(15		)
Net income (loss) attributable to the Company	$	2,848		$	(528	)	$	347,211		$	2,027

Segment Condensed Assets



	September 30, 2019		December 31, 2018
	(in thousands)
Condensed assets:
Office (1)	$	458,979	$	1,094,269
Hotel	105,478		105,845
Lending	84,588		97,465
Non-segment assets	10,807		44,822
Total assets	$	659,852	$	1,342,401

Segment Capital Expenditures



	Nine Months Ended September 30,
	2019		2018
	(in thousands)
Capital expenditures (2):
Office (1)	$	9,500	$	11,462
Hotel	1,846		1,343
Total capital expenditures	11,346		12,805
Loan originations	27,421		53,320
Total capital expenditures and loan originations	$	38,767	$	66,125


(1)	The December 31, 2018 balances include the assets of 260 Townsend Street, which was classified as held for sale on our consolidated balance sheet at December 31, 2018 and sold in March 2019 (Note 3).


(2)	Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates.

PRO FORMA FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2019

Accounting Changes and Error Corrections [Abstract]

Pro Forma Information

"Item 2 —Management's Discussion and Analysis of Financial Condition and Results of Operations— Program to Unlock Embedded Value in Our Portfolio and Improve Trading Liquidity of Our Common Stock."



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019		2018
	(in thousands, except per share amounts)
Pro forma revenue	$	27,047		$	41,193		$	97,971	$	128,074
Pro forma net income (loss)	1,513			(1,124		)	412,341		102
Pro forma net income (loss) attributable to the Company	1,510			(1,131		)	412,310		65
Pro forma net (loss) income attributable to common stockholders	(2,960		)	(5,051		)	399,368		(11,312		)
Pro forma net (loss) income attributable to common stockholders per share, basic	$	(0.20	)	$	(0.35	)	$	27.36	$	(0.77	)
Pro forma net (loss) income attributable to common stockholders per share, diluted	$	(0.20	)	$	(0.35	)	$	25.36	$	(0.77	)

ORGANIZATION AND OPERATIONS (Details)	Sep. 03, 2019 $ / shares	Sep. 30, 2019 $ / shares shares	Dec. 31, 2018 $ / shares shares
Class of Stock [Line Items]
Common stock, par value (in usd per share) \| $ / shares	$ 0.003	$ 0.001	$ 0.003
Common stock, shares authorized (in shares) \| shares		900,000,000	900,000,000
Preferred stock, shares authorized (in shares) \| shares		100,000,000
Reverse stock split ratio, common stock	0.3333
Series L Preferred Stock
Class of Stock [Line Items]
Preferred stock, par value (in usd per share) \| $ / shares		$ 0.001	$ 0.001

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments in Real Estate (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Investments in Real Estate
Impairment of real estate	$ 0	$ 0	$ 69,000,000	$ 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 - Revenue Recognition (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Fixed lease payments	$ 15,389,000	$ 34,108,000	$ 66,925,000	$ 101,423,000
Variable lease payments	1,917,000	2,498,000	6,381,000	8,152,000
Rental and other property income	17,306,000	36,606,000	73,306,000	109,575,000
Hotel income	7,734,000	7,715,000	27,087,000	27,564,000
Tenant recoveries outside of lease agreements	0	120,000	205,000	398,000
Remaining performance obligations	0		0
Rental and other property income
Disaggregation of Revenue [Line Items]
Hotel income	736,000	777,000	2,208,000	2,273,000
Interest and other income
Disaggregation of Revenue [Line Items]
Hotel income	41,000	50,000	135,000	143,000
Hotel income
Disaggregation of Revenue [Line Items]
Hotel income	$ 8,511,000	$ 8,542,000	$ 29,430,000	$ 29,980,000

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans Receivable (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2015	Mar. 11, 2014
Loans receivable
Unamortized retained loan discounts	$ 7,673,000		$ 7,673,000		$ 7,234,000
Loan receivable, nonaccrual, past due period (more than)			60 days
Impairment on loans receivable	140,000	$ 0	$ 82,000	$ 0
SBA 7(a) loans receivable, subject to secured borrowings
Loans receivable
Unamortized acquisition discounts related to sold loans						$ 15,951,000
PMC Commercial
Loans receivable
Discount on acquisition							$ 33,907,000
Acquisition discount	$ 774,000		$ 774,000		$ 884,000

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Rent Receivable and Charges (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Deferred Rent Receivable and Charges
Deferred rent receivable	$ 19,463	$ 52,366
Deferred leasing costs	16,771	51,152
Deferred leasing costs, accumulated amortization	7,125	23,910
Deferred offering costs	4,753	4,213
Other deferred costs	$ 454	$ 409

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Redeemable Preferred Stock (Details)	9 Months Ended
	Sep. 30, 2019
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Preferred stock, percentage of stated value	100.00%
Preferred stock redemption, trading days prior to redemption	20 days

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Rental and other property expenses	$ (13,286)	$ (20,405)	$ (49,197)	$ (59,086)
Rental and other property income	17,306	36,606	73,306	109,575
Interest and other income	$ 4,175	3,286	$ 12,955	10,306
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Expense reimbursements		1,857		6,248
Non-lease component expense reimbursements		272		841
Rental and other property expenses		33		152
Interest and other income		272		841
Reclassified From Expense Reimbursements \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Rental and other property income		1,857		6,248
Reclassified From Rental And Other Property Expenses \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Rental and other property income		$ 33		$ 152

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) contract	Jan. 01, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of lease contracts \| contract	1
Right-of use asset	$ 170
Lease liability	$ 170
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of use asset		$ 362
Lease liability		$ 362

ACQUISITIONS AND DISPOSITIONS - Acquisitions (Details) $ in Thousands		9 Months Ended
	Jan. 18, 2018 USD ($) ft²	Sep. 30, 2019 acquistion	Dec. 31, 2017 USD ($)
Business Acquisition [Line Items]
Number of business acquisitions \| acquistion		0
9460 Wilshire Boulevard in Los Angeles, California
Business Acquisition [Line Items]
Percent of ownership acquired	100.00%
Square Feet \| ft²	91,750
Purchase Price \| $	$ 132,000
Non-refundable deposit \| $			$ 20,000
Asset acquisitions transaction costs \| $	$ 48
9460 Wilshire Boulevard in Los Angeles, California - Office Space
Business Acquisition [Line Items]
Square Feet \| ft²	68,866
9460 Wilshire Boulevard in Los Angeles, California - Retail Space
Business Acquisition [Line Items]
Square Feet \| ft²	22,884

ACQUISITIONS AND DISPOSITIONS - Disposals (Details)	3 Months Ended		9 Months Ended
ACQUISITIONS AND DISPOSITIONS - Disposals (Details)	Sep. 30, 2019 USD ($) ft²	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) ft²	Sep. 30, 2018 USD ($) disposition
Disposal Group
Ownership sold, percentage			100.00%
Disposed Property Information
Sales Price			$ 941,032,000	$ 0
Gain on sale of real estate	$ 302,000	$ 0	433,104,000	0
Impairment of real estate	0	$ 0	69,000,000	$ 0
Extinguishment of noncontrolling interests as a result of the sale	$ 113,000		113,000
Number of dispositions during the period \| disposition				0
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Sales Price			990,996,000
Transaction Costs			18,350,000
Gain on sale of real estate			$ 433,104,000
March Oakland Properties, Oakland, CA \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Square Feet \| ft²	975,596		975,596
Sales Price			$ 512,016,000
Transaction Costs			8,971,000
Gain on sale of real estate			$ 289,779,000
830 1st Street, Washington, D.C. \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Square Feet \| ft²	247,337		247,337
Sales Price			$ 116,550,000
Transaction Costs			2,438,000
Gain on sale of real estate			$ 45,710,000
260 Townsend Street, San Francisco, CA \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Square Feet \| ft²	66,682		66,682
Sales Price			$ 66,000,000
Transaction Costs			2,539,000
Gain on sale of real estate			$ 42,092,000
1333 Broadway, Oakland, CA \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Square Feet \| ft²	254,523		254,523
Sales Price			$ 115,430,000
Transaction Costs			658,000
Gain on sale of real estate			$ 55,221,000
Union Square Properties,Washington, D.C. \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Square Feet \| ft²	630,650		630,650
Sales Price			$ 181,000,000
Transaction Costs			3,744,000
Gain on sale of real estate			$ 302,000

ACQUISITIONS AND DISPOSITIONS - Fair Value of Net Assets Acquired (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Business Acquisition [Line Items]
Percent of total assets, less than		10.00%
Acquired in-place leases
Business Acquisition [Line Items]
Average useful life (in years)	8 years		8 years
2018 Acquisitions
Business Acquisition [Line Items]
Net assets acquired		$ 132,048
2018 Acquisitions \| Land
Business Acquisition [Line Items]
Property, plant, and equipment		52,199
2018 Acquisitions \| Land improvements
Business Acquisition [Line Items]
Property, plant, and equipment		756
2018 Acquisitions \| Buildings and improvements
Business Acquisition [Line Items]
Property, plant, and equipment		74,522
2018 Acquisitions \| Tenant improvements
Business Acquisition [Line Items]
Property, plant, and equipment		1,451
2018 Acquisitions \| Acquired in-place leases
Business Acquisition [Line Items]
Intangible assets		$ 7,003
Average useful life (in years)		3 years
2018 Acquisitions \| Acquired above-market leases
Business Acquisition [Line Items]
Intangible assets		$ 109
Average useful life (in years)		2 years
2018 Acquisitions \| Acquired below-market leases
Business Acquisition [Line Items]
Intangible assets		$ 3,992
Average useful life (in years)		3 years

ACQUISITIONS AND DISPOSITIONS - Carrying Value of Assets and Liabilities at Time of Sale and Held for Sale (Details) - USD ($) $ in Thousands			1 Months Ended	9 Months Ended
	Mar. 14, 2019	Mar. 01, 2019	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	May 16, 2019	Dec. 31, 2018
Disposal Group
Ownership sold, percentage				100.00%
Assets
Total assets, net				$ 0			$ 22,175
Liabilities
Total liabilities				0			28,766
Deferred loan costs				1,704
Debt, accumulated amortization				576
Payment of mortgages payable				46,000	$ 0
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Assets
Investments in real estate, net				476,532
Deferred rent receivable and charges, net				55,297
Other intangible assets, net				316
Other assets				4,096
Total assets, net				536,241
Liabilities
Debt, net				318,072
Total liabilities				$ 318,072
Disposal Group, Held-for-sale, Not Discontinued Operations
Assets
Investments in real estate, net							17,123
Cash and cash equivalents							755
Accounts receivable, net							41
Deferred rent receivable and charges, net							4,009
Other intangible assets, net							220
Other assets							27
Total assets, net							22,175
Liabilities
Debt, net							28,018
Accounts payable and accrued expenses							370
Due to related parties							81
Other liabilities							297
Total liabilities							28,766
Deferred loan costs							243
Debt, accumulated amortization							61
Investments in real estate							24,832
Investments in real estate, accumulated depreciation							7,709
Deferred rent receivable							2,909
Deferred leasing costs							1,669
Deferred leasing costs, accumulated amortization							569
Debt, gross							28,200
Acquired In-Place Leases \| Disposal Group, Held-for-sale, Not Discontinued Operations
Assets
Other intangible assets, net							1,778
Liabilities
Other intangible assets, accumulated amortization							$ 1,558
Office Property, San Fransisco California \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Liabilities
Outstanding amount	$ 28,200
Office Property, Washington, D.C. \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Liabilities
Payment of mortgages payable		$ 46,000
260 Townsend Street, San Francisco, CA
Disposal Group
Ownership sold, percentage			100.00%
Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026 \| Properties Used As Collateral For Loans \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Liabilities
Defeased amount		$ 205,500
Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026 \| 1333 Broadway, Oakland, CA \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Liabilities
Defeased amount						$ 39,500

INVESTMENTS IN REAL ESTATE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Real Estate [Abstract]
Land	$ 134,421		$ 134,421		$ 266,410
Land improvements	2,713		2,713		18,368
Buildings and improvements	437,833		437,833		912,892
Furniture, fixtures, and equipment	3,724		3,724		4,245
Tenant improvements	32,807		32,807		133,487
Work in progress	12,152		12,152		9,234
Investments in real estate	623,650		623,650		1,344,636
Accumulated depreciation	(117,684)		(117,684)		(303,699)
Net investments in real estate	505,966		505,966		$ 1,040,937
Depreciation expense	$ 4,156	$ 10,901	$ 17,908	$ 32,487

LOANS RECEIVABLE (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
LOANS RECEIVABLE (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans receivable
Loans receivable	$ 71,111	$ 82,641
Deferred capitalized costs	1,147	1,309
Loan loss reserves	(682)	(702)
Loans receivable, net	$ 71,576	$ 83,248
Loans, percent current	99.90%	99.70%
SBA 7(a) loans receivable, subject to loan-backed notes
Loans receivable
Loans receivable	$ 31,565	$ 36,847
SBA 7(a) loans receivable, subject to credit risk
Loans receivable
Loans receivable	25,670	29,385
SBA 7(a) loans receivable, subject to secured borrowings
Loans receivable
Loans receivable	13,876	16,409
Substandard
Loans receivable
Loans receivable, net	$ 866	$ 235
Hospitality Industry \| Loans subject to credit risk
Loans receivable
Concentration risk, percent	98.80%	98.30%

OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Intangible liabilities
Net	$ (1,562)		$ (1,562)		$ (2,872)
Future accretion of acquisition related intangible liabilities
Net	(1,562)		(1,562)		(2,872)
Acquired Below-Market Leases
Intangible liabilities
Gross balance	(3,521)		(3,521)		(6,618)
Accumulated amortization	1,959		1,959		3,746
Net	(1,562)		$ (1,562)		$ (2,872)
Average useful life (in years)			4 years		4 years
Future accretion of acquisition related intangible liabilities
2019 (Three months ending December 31, 2019)	(280)		$ (280)
2020	(701)		(701)
2021	(347)		(347)
2022	(234)		(234)
2023	0		0
Thereafter	0		0
Net	(1,562)		(1,562)		$ (2,872)
Acquired Above-Market Leases
Intangible assets
Gross balance	74		74		146
Accumulated amortization	(38)		(38)		(51)
Net	36		$ 36		$ 95
Average useful life (in years)			5 years		3 years
Amortization
Amortization expense	17	$ 14	$ 59	$ 40
Future amortization of acquisition related intangible assets
2019 (Three months ending December 31, 2019)	4		4
2020	9		9
2021	5		5
2022	5		5
2023	6		6
Thereafter	7		7
Net	36		36		$ 95
Acquired In-Place Leases
Intangible assets
Gross balance	13,653		13,653		16,210
Accumulated amortization	(8,906)		(8,906)		(9,731)
Net	4,747		$ 4,747		$ 6,479
Average useful life (in years)			8 years		8 years
Amortization
Amortization expense	495	927	$ 1,636	2,769
Future amortization of acquisition related intangible assets
2019 (Three months ending December 31, 2019)	476		476
2020	1,349		1,349
2021	899		899
2022	663		663
2023	375		375
Thereafter	985		985
Net	4,747		4,747		$ 6,479
Trade Name and License
Intangible assets
Gross balance	2,957		2,957		2,957
Accumulated amortization	0		0		0
Net	2,957		2,957		2,957
Future amortization of acquisition related intangible assets
Net	2,957		2,957		$ 2,957
Rental and Other Property Income \| Acquired Below-Market Leases
Amortization
Amortization expense	$ 376	$ 478	$ 1,310	$ 1,711

DEBT - Schedule (Details) - USD ($)		9 Months Ended
DEBT - Schedule (Details) - USD ($)	May 30, 2018	Sep. 30, 2019	May 16, 2019	Mar. 01, 2019	Dec. 31, 2018
Debt
Total Debt		$ 227,727,000			$ 588,671,000
Mortgages Payable
Debt
Gross debt		97,100,000			388,100,000
Deferred loan costs		(181,000)			(1,177,000)
Total Debt		96,919,000			386,923,000
Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026
Debt
Gross debt		$ 97,100,000			342,100,000
Fixed interest rate		4.14%
Amount of balance due on maturity		$ 97,100,000
Mortgage loan with a fixed interest of 4.50% per annum, due on January 5, 2027
Debt
Gross debt		$ 0			46,000,000
Fixed interest rate		4.50%
Amount of balance due on maturity		$ 42,008,000
Period of amortization schedule		10 years
Secured Borrowings - Government Guaranteed Loans
Debt
Gross debt		$ 13,288,000			15,765,000
Premiums and discounts		727,000			940,000
Total Debt		14,015,000			16,705,000
Secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 6.21% and 5.89% at September 30, 2019 and December 31, 2018, respectively.
Debt
Gross debt		$ 8,935,000			$ 11,283,000
Weighted average rate		6.21%			5.89%
Secured borrowing principal on SBA 7(a) loans sold for excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.82% and 3.57% at September 30, 2019 and December 31, 2018, respectively.
Debt
Gross debt		$ 4,353,000			$ 4,482,000
Weighted average rate		3.82%			3.57%
Loan Backed Notes \| LIBOR
Debt
Interest rate margin	1.40%	1.40%
Loan Backed Notes \| Prime Rate
Debt
Interest rate margin	1.08%	1.08%
Other Debt
Debt
Gross debt		$ 121,714,000			$ 190,839,000
Total Debt		116,793,000			185,043,000
Loan-Backed Notes
Debt
Gross debt		26,144,000			33,769,000
Junior subordinated notes
Debt
Gross debt		27,070,000			27,070,000
Premiums and discounts		$ (1,792,000)			(1,855,000)
Junior subordinated notes \| LIBOR
Debt
Interest rate margin		3.25%
Unsecured term loan and credit facilities
Debt
Deferred loan costs		$ (3,129,000)			(3,941,000)
Revolving Credit Facility \| Line of Credit
Debt
Gross debt		$ 68,500,000			$ 130,000,000
1333 Broadway, Oakland, CA \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026
Debt
Defeased amount			$ 39,500,000
Properties Used As Collateral For Loans \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026
Debt
Defeased amount				$ 205,500,000

DEBT - Narrative (Details)											1 Months Ended				3 Months Ended		9 Months Ended		12 Months Ended
DEBT - Narrative (Details)	Oct. 18, 2019 USD ($)	May 16, 2019 USD ($) mortgage_loan	Mar. 14, 2019 USD ($) mortgage_loan	Mar. 11, 2019 USD ($) swap	Mar. 01, 2019 USD ($)	Feb. 28, 2019 USD ($)	Dec. 28, 2018 USD ($) swap	Oct. 30, 2018 USD ($)	May 30, 2018 USD ($)	Sep. 21, 2017 USD ($) mortgage_loan	Oct. 31, 2018 USD ($) extension	Jun. 30, 2016 USD ($) agreement	May 31, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($) swap	Dec. 31, 2018 USD ($)	Nov. 02, 2015 USD ($)	Aug. 13, 2015 USD ($)
Debt
Deferred loan costs															$ 4,535,000		$ 4,535,000			$ 5,994,000
Deferred loan costs, accumulated amortization															1,225,000		1,225,000			876,000
Loss on early extinguishment of debt															0	$ 0	29,982,000	$ 0
Proceeds from notes payable																	0	38,200,000
Restricted cash															11,507,000	$ 21,524,000	11,507,000	21,524,000		22,512,000
Number of swaps terminated \| swap				2			1												7
Notional amount of terminated swaps				$ 120,000,000			$ 50,000,000
Financing Receivable, Revolving																	74,000,000	0
Payment of mortgages payable																	46,000,000	0
Prepayment penalties and other payments for early extinguishment of debt																	5,660,000	$ 0
Accrued interest and unused commitment fee payable															552,000		552,000			1,574,000
Unsecured credit facility entered into in September 2014
Debt
Maximum borrowing capacity														$ 850,000,000
Unsecured credit facility entered into in September 2014, revolver
Debt
Maximum borrowing capacity														$ 450,000,000
Unsecured credit facility entered into in September 2014, revolver \| Minimum
Debt
Interest rate margin														0.20%
Unsecured credit facility entered into in September 2014, revolver \| Maximum
Debt
Interest rate margin														1.00%
Unsecured credit facility entered into in September 2014, revolver \| LIBOR \| Minimum
Debt
Interest rate margin														1.20%
Unsecured credit facility entered into in September 2014, revolver \| LIBOR \| Maximum
Debt
Interest rate margin														2.00%
Unsecured credit facility entered into in September 2014, term loan
Debt
Maximum borrowing capacity														$ 325,000,000
Unsecured credit facility entered into in September 2014, term loan \| LIBOR \| Minimum
Debt
Interest rate margin														1.15%
Unsecured credit facility entered into in September 2014, term loan \| LIBOR \| Maximum
Debt
Interest rate margin														1.95%
Unsecured credit facility entered into in September 2014, term loan \| Base rate \| Minimum
Debt
Interest rate margin														0.15%
Unsecured credit facility entered into in September 2014, term loan \| Base rate \| Maximum
Debt
Interest rate margin														0.95%
Unsecured credit facility entered into in September 2014, delayed-draw term loan
Debt
Maximum borrowing capacity														$ 75,000,000
Unsecured Term Loan Facility Entered Into May 2015
Debt
Deferred loan costs, accumulated amortization																			$ 705,000
Maximum borrowing capacity													$ 385,000,000								$ 385,000,000
Interest rate													3.16%
Repayments of debt																			215,000,000
Write off of deferred loan costs								$ 1,872,000											$ 1,988,000
Repayments of long-term debt								170,000,000
Write off of accumulated amortization								1,064,000
Unsecured Term Loan Facility Entered Into May 2015 \| LIBOR \| Minimum
Debt
Interest rate margin													1.60%
Unsecured Term Loan Facility Entered Into May 2015 \| LIBOR \| Maximum
Debt
Interest rate margin													2.25%
Unsecured Term Loan Facility Entered Into May 2015 \| Base rate \| Minimum
Debt
Interest rate margin													0.60%
Unsecured Term Loan Facility Entered Into May 2015 \| Base rate \| Maximum
Debt
Interest rate margin													1.25%
Mortgages Payable
Debt
Number of mortgage loan agreements \| agreement												6
Amount of loan												$ 392,000,000
Gross debt															97,100,000		97,100,000			388,100,000
Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026
Debt
Gross debt															97,100,000		97,100,000			342,100,000
Loan Backed Notes
Debt
Proceeds from notes payable									$ 38,200,000
Weight average life									2 years
Restricted cash															2,232,000		$ 2,232,000			$ 3,174,000
Loan Backed Notes \| LIBOR
Debt
Interest rate margin									1.40%								1.40%
Loan Backed Notes \| Prime Rate
Debt
Interest rate margin									1.08%								1.08%
Revolving Credit Facility
Debt
Maximum borrowing capacity											$ 250,000,000
Interest rate																				4.07%
Number of extensions \| extension											1
Extension option, term											1 year
Proceeds from issuance of debt								$ 170,000,000
Revolving Credit Facility \| Minimum
Debt
Unused commitment fee percentage											0.15%
Revolving Credit Facility \| Maximum
Debt
Unused commitment fee percentage											0.25%
Revolving Credit Facility \| LIBOR
Debt
Interest rate margin											1.55%
Revolving Credit Facility \| Base rate
Debt
Interest rate margin											0.55%
7083 Hollywood Boulevard, Los Angeles, California \| Disposal Group, Held-for-sale, Not Discontinued Operations
Debt
Outstanding amount										$ 21,700,000
Number of mortgage loans assumed by buyer \| mortgage_loan										1
Properties Used As Collateral For Loans \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026
Debt
Write off of deferred loan costs					$ 637,000
Write off of accumulated amortization					170,000
Defeased amount					205,500,000
Cash outlay required for defeasance					224,086,000
Loss on early extinguishment of debt															0		$ 19,290,000
Transaction costs					237,000
Office Property, San Fransisco California \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Debt
Write off of deferred loan costs																	243,000
Write off of accumulated amortization																	65,000
Outstanding amount			$ 28,200,000
Loss on early extinguishment of debt															0		178,000
Number of mortgage loans assumed by buyer \| mortgage_loan			1
1333 Broadway, Oakland, CA \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026
Debt
Write off of deferred loan costs		$ 287,000
Write off of accumulated amortization		82,000
Defeased amount		39,500,000
Cash outlay required for defeasance		44,108,000
Loss on early extinguishment of debt															0		4,911,000
Transaction costs		$ 98,000
Number of mortgage loans defeased \| mortgage_loan		1
Office Property, Washington, D.C. \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Debt
Write off of deferred loan costs					537,000
Write off of accumulated amortization					259,000
Loss on early extinguishment of debt															0		5,603,000
Payment of mortgages payable					46,000,000
Prepayment penalties and other payments for early extinguishment of debt					$ 5,325,000
Interest Rate Swap
Debt
Total notional amount																						$ 385,000,000
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedges
Debt
Total notional amount															$ 120,000,000		$ 120,000,000
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedges \| Weighted Average
Debt
All-in rate															3.11%		3.11%
Revolving Credit Facility \| Line of Credit
Debt
Repayments of debt				$ 120,000,000		$ 10,000,000	$ 40,000,000
Gross debt															$ 68,500,000		$ 68,500,000			$ 130,000,000
Remaining borrowing capacity															$ 175,100,000		$ 175,100,000			$ 91,000,000
Revolving Credit Facility \| Subsequent Event \| Line of Credit
Debt
Financing Receivable, Revolving	$ 76,500,000

DEBT - Schedule of Future Principal Payments (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Future Principal Payments on Debt
2019 (Three months ending December 31, 2019)	$ 1,479
2020	2,373
2021	2,450
2022	71,031
2023	2,620
Thereafter	152,149
Total Debt	232,102
Mortgages Payable
Future Principal Payments on Debt
2019 (Three months ending December 31, 2019)	0
2020	0
2021	0
2022	0
2023	0
Thereafter	97,100
Total Debt	97,100
Secured Borrowings Principal
Future Principal Payments on Debt
2019 (Three months ending December 31, 2019)	128
2020	529
2021	557
2022	588
2023	620
Thereafter	10,866
Total Debt	13,288
Other Debt
Future Principal Payments on Debt
2019 (Three months ending December 31, 2019)	1,351
2020	1,844
2021	1,893
2022	70,443
2023	2,000
Thereafter	44,183
Total Debt	$ 121,714

STOCK-BASED COMPENSATION PLANS (Details) - Restricted share awards - USD ($) $ in Thousands	1 Months Ended				3 Months Ended		9 Months Ended
	Jul. 31, 2019	May 31, 2019	May 31, 2018	Jun. 30, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based compensation plans
Unrecognized compensation expense					$ 131		$ 131
Independent Directors
Share-based compensation plans
Granted to each individual (in shares)	81	889	1,126	1,065
Granted (in shares)	324	3,556	3,378	3,195
Award vesting period		1 year	1 year	1 year
Stock-based compensation expense					$ 56	$ 38	$ 138	$ 124

EARNINGS PER SHARE (''EPS'') (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Numerator:

Net (loss) income attributable to common stockholders

$ (1,622)

$ (4,448)

$ 334,269

$ (9,350)

Redeemable preferred stock dividends declared on dilutive shares

1,917

Diluted net (loss) income attributable to common stockholders

$ (1,622)

$ (4,448)

$ 336,186

$ (9,350)

Denominator:

Basic weighted average shares outstanding (in shares)

^[1]

14,598

14,597

Effect of dilutive securities—contingently issuable shares and stock options (in shares)

1,227

Diluted weighted average shares and common stock equivalents outstanding (in shares)

^[1]

14,599

14,598

15,825

14,597

Net (loss) income attributable to common stockholders per share:

Basic (in usd per share)

^[1]

$ (0.11)

$ (0.30)

$ 22.90

$ (0.64)

Diluted (in usd per share)

^[1]

$ (0.11)

$ (0.30)

$ 21.24

$ (0.64)

[1]	All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019.

REDEEMABLE PREFERRED STOCK - Narrative (Details) - USD ($)				3 Months Ended						9 Months Ended
	Oct. 22, 2019	Nov. 21, 2017	Jul. 01, 2016	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Dec. 31, 2018
Class of Stock [Line Items]
Preferred stock redemption, trading days prior to redemption										20 days
Costs specifically identifiable to the offering										$ 8,102,000
Non issuance specific costs										5,360,000
Deferred rent receivable and charges reclassified to temporary equity										$ 56,033,000
Dividends accrued ( in usd per share)				$ 0.34375	$ 0.34375	$ 0.34375	$ 0.34375	$ 0.34375	$ 0.34375
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock redemption, trading days prior to redemption										20 days
Proceeds from issuance of preferred stock										$ 101,987,000
Costs specifically identifiable to the offering										7,969,000
Reclassification of Series A Preferred Stock from temporary equity to permanent equity										$ 603,000
Number of shares redeemed										12,887
Cumulative dividend rate										5.50%
Dividend per share per year (in usd per share)										$ 0.34375
Preferred stock, shares issued (in shares)				1,642,763						1,642,763	1,566,386
Preferred stock, liquidation preference per share (in usd per share)				$ 25.00						$ 25.00	$ 25.00
Series A Preferred Unit
Class of Stock [Line Items]
Units issued (in shares)				4,104,867						4,104,867
Proceeds from issuance of preferred stock and warrants										$ 102,620,000
Warrant
Class of Stock [Line Items]
Net proceeds from issuance of warrants										633,000
Costs specifically identifiable to the offering										133,000
Reclassification of Series A Preferred Stock from temporary equity to permanent equity										$ 4,000
Series L Preferred Stock
Class of Stock [Line Items]
Proceeds from issuance of preferred stock and warrants		$ 229,251,000
Costs specifically identifiable to the offering		15,928,000
Non issuance specific costs		$ 2,532,000
Number of shares redeemed				0
Cumulative dividend rate		5.50%
Dividend per share per year (in usd per share)		$ 1.56035
Preferred stock, shares issued (in shares)		8,080,740		8,080,740						8,080,740	8,080,740
Preferred stock, liquidation preference per share (in usd per share)				$ 28.37						$ 28.37	$ 28.37
Preferred stock discount		$ 2,946,000
Failure to declare or pay distributions, temporary increase per year		1.00%
Failure to declare or pay distributions, temporary increase per year, maximum increase		8.50%
Minimum fixed charge coverage ratio										125.00%
Registration Statement
Class of Stock [Line Items]
Maximum amount of offering				$ 900,000,000						$ 900,000,000
Warrant right to purchase a share of common stock (in shares)				0.25						0.25
Maximum number of units in offering (in shares)				36,000,000						36,000,000
Registration Statement \| Series A Preferred Stock
Class of Stock [Line Items]
Redeemable preferred stock, par value (in usd per share)				$ 0.001						$ 0.001
Preferred stock, stated value (in usd per share)				$ 25						$ 25
Registration Statement \| Series L Preferred Stock
Class of Stock [Line Items]
Preferred stock, liquidation preference per share (in usd per share)		$ 28.37
Preferred Stock, Redemption Period, Year Two \| Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, redemption fee			13.00%
Preferred Stock, Redemption Period, After Year Two, Before Year Five \| Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, redemption fee			10.00%
Preferred Stock, Redemption Period, After Year Five \| Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, redemption fee			0.00%
Tender Offer \| Subsequent Event \| Series L Preferred Stock
Class of Stock [Line Items]
Authorized shares for repurchase (in shares)	2,693,580
Authorized shares for repurchase, percentage of share outstanding	33.00%
Purchase price (in usd per share)	$ 29.12
Dividends accrued ( in usd per share)	$ 1.39
Escrow deposit	$ 78,545,000

REDEEMABLE PREFERRED STOCK - Dividends Declared (Details) - USD ($) $ in Thousands							3 Months Ended
	Aug. 08, 2019	Jun. 04, 2019	Feb. 20, 2019	Aug. 22, 2018	Jun. 04, 2018	Mar. 06, 2018	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Class of Stock [Line Items]
Cash Dividends Declared							$ 1,318	$ 1,150	$ 1,010	$ 769	$ 662	$ 493
Series A Preferred Stock
Class of Stock [Line Items]
Number of Shares	4,091,980	3,601,721	3,149,924	2,457,119	2,149,863	1,674,841
Cash Dividends Declared	$ 1,318	$ 1,150	$ 1,010	$ 769	$ 662	$ 493

REDEEMABLE PREFERRED STOCK - Dividends Accumulated (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Class of Stock [Line Items]
Dividends Accumulated	$ 4,470			$ 3,921			$ 12,934	$ 11,380
Series L Preferred Stock
Class of Stock [Line Items]
Series L Preferred Stock outstanding (in shares)	8,080,740		8,080,740	8,080,740	8,080,740	8,080,740	8,080,740	8,080,740
Dividends Accumulated	$ 3,152	$ 3,152	$ 3,152	$ 3,152	$ 3,152	$ 3,152

STOCKHOLDERS' EQUITY - Dividends (Details) $ / shares in Units, $ in Thousands										3 Months Ended						9 Months Ended
	Aug. 30, 2019 USD ($) $ / shares	Aug. 08, 2019 $ / shares	Jun. 04, 2019 $ / shares	Feb. 20, 2019 $ / shares	Aug. 22, 2018 $ / shares	Jun. 04, 2018 $ / shares	Mar. 06, 2018 $ / shares	Jan. 11, 2018 USD ($)	Dec. 18, 2017 $ / shares	Sep. 30, 2019 $ / shares	Jun. 30, 2019 $ / shares	Mar. 31, 2019 $ / shares	Sep. 30, 2018 $ / shares	Jun. 30, 2018 $ / shares	Mar. 31, 2018 $ / shares	Sep. 30, 2019 USD ($) property	Sep. 30, 2018 USD ($)
Dividends Payable [Line Items]
Dividends paid per common share (in usd per share)										$ 0.075	$ 0.375	$ 0.375	$ 0.375	$ 0.375	$ 0.375
Declared dividends per common share prior to reverse stock split (in usd per share)									$ 0.73
Payments of special dividends \| $																$ 613,294	$ 1,575
Common Stock
Dividends Payable [Line Items]
Declared dividends per common share (in usd per share)		$ 0.075	$ 0.375	$ 0.375	$ 0.375	$ 0.375	$ 0.375
Common Stock, Excluding Private Repurchase Participants
Dividends Payable [Line Items]
Declared dividends per common share (in usd per share)									$ 2.19
Payments of special dividends \| $								$ 1,575
Special Dividend
Dividends Payable [Line Items]
Dividends paid per common share (in usd per share)										$ 42.00
Special Dividend \| Common Stock
Dividends Payable [Line Items]
Declared dividends per common share (in usd per share)	$ 14.00	$ 42
Dividends paid per common share (in usd per share)	$ 42.00
Payments of special dividends \| $	$ 613,294
Ten Real Estate Properties Sold In 2019 \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Dividends Payable [Line Items]
Number of real estate properties sold \| property																10

STOCKHOLDERS' EQUITY - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Dec. 18, 2017	Sep. 30, 2019
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired		$ 1
Urban Partners II, LLC \| December 2017 Share Repurchase \| Common Stock
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired (in shares)	4,696,969
Stock repurchased and retired	$ 310,000
Stock repurchased and retired (in usd per share)	$ 66

STOCKHOLDERS' EQUITY - Warrants (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Registration statement
Warrants issued (in shares)	4,104,867
Net proceeds from issuance of warrants	$ 295	$ 62
Registration Statement
Registration statement
Warrant right to purchase a share of common stock (in shares)	0.25
Premium of the exercise price of the warrant as a percent to net asset value of common stock	15.00%
Series A Preferred Unit
Registration statement
Net proceeds from issuance of warrants	$ 496

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details)				3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 11, 2019 USD ($) swap	Feb. 28, 2019 USD ($)	Dec. 28, 2018 USD ($) swap	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($) swap	Aug. 13, 2015 USD ($) swap
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Number of swaps terminated \| swap	2		1					7
Termination payments, net of fees	$ 1,302,000		$ 684,000					$ 973,000
Notional amount of terminated swaps	120,000,000		50,000,000
Reclassification from AOCI to interest expense				$ 0	$ 320,000	$ 1,806,000	$ 320,000
Write-off from swaps being terminated	1,580,000
Change in fair value of swaps						209,000	70,000
Unsecured Term Loan Facility Entered Into May 2015
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Repayments of debt								$ 215,000,000
Interest Rate Swap
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Number of interest rate swaps \| swap									10
Total notional amount									$ 385,000,000
Derivative, fair value	1,421,000
Loss on swap				0		119,000
Revolving Credit Facility \| Line of Credit
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Repayments of debt	$ 120,000,000	$ 10,000,000	$ 40,000,000
Interest Expense
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Change in fair value of swaps				$ 0	$ 70,000	$ 209,000	$ 70,000

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - AOCI (Details) - USD ($) $ in Thousands	3 Months Ended					9 Months Ended
	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 966,260	$ 617,275	$ 624,440	$ 624,485	$ 626,705	$ 617,275	$ 626,705
Other comprehensive income before reclassifications	0		214			0	1,973
Amounts reclassified from accumulated other comprehensive income (loss)	0		(397)			(1,806)	(566)
Net current period other comprehensive income	0	(1,806)	(183)	407	1,183	(1,806)	1,407
Ending balance	360,601	909,507	623,438	624,440	624,485	360,601	623,438
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0	$ 1,806	3,221		$ 1,631	1,806	1,631
Ending balance	$ 0		$ 3,038	$ 3,221		$ 0	$ 3,038

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Other assets \| Fair Value, Measurements, Recurring \| Interest rate swaps \| Level 2
Fair value of financial instruments
Derivative assets	$ 0	$ 1,630

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value of Financial Instruments Not Recorded at Fair Value (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) mortgage_loan	Sep. 30, 2019 USD ($)
Carrying Amount
Liabilities:
Mortgages payable	$ 386,923	$ 96,919
Junior subordinated notes	25,215	25,278
Carrying Amount \| SBA 7(a) loans receivable, subject to loan-backed notes
Assets:
Loans receivable	37,031	31,404
Carrying Amount \| SBA 7(a) loans receivable, subject to credit risk
Assets:
Loans receivable	29,748	26,257
Carrying Amount \| SBA 7(a) loans receivable, subject to secured borrowings
Assets:
Loans receivable	16,469	13,915
Fair Value, Measurements, Nonrecurring \| Estimated Fair Value \| Level 3
Liabilities:
Mortgages payable	377,364	101,258
Junior subordinated notes	24,462	24,410
Fair Value, Measurements, Nonrecurring \| Estimated Fair Value \| Level 3 \| SBA 7(a) loans receivable, subject to loan-backed notes
Assets:
Loans receivable	38,357	32,658
Fair Value, Measurements, Nonrecurring \| Estimated Fair Value \| Level 3 \| SBA 7(a) loans receivable, subject to credit risk
Assets:
Loans receivable	30,630	27,310
Fair Value, Measurements, Nonrecurring \| Estimated Fair Value \| Level 3 \| SBA 7(a) loans receivable, subject to secured borrowings
Assets:
Loans receivable	$ 16,706	$ 14,015
Disposal Group, Held-for-sale, Not Discontinued Operations
Carrying Value
Number of mortgage loans excluded \| mortgage_loan	1
Debt classified as liabilities associated with assets held for sale	$ 28,018

FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable Inputs (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
SBA 7(a) loans receivable, subject to loan-backed notes \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	12.10%	9.59%
SBA 7(a) loans receivable, subject to loan-backed notes \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	17.50%	17.50%
SBA 7(a) loans receivable, subject to credit risk \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	8.03%	4.91%
SBA 7(a) loans receivable, subject to credit risk \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	17.50%	17.50%
SBA 7(a) loans receivable, subject to secured borrowings \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	10.29%	10.29%
SBA 7(a) loans receivable, subject to secured borrowings \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	17.50%	17.50%
Measurement Input, Discount Rate \| Mortgages Payable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for debt	0.0344
Measurement Input, Discount Rate \| Mortgages Payable \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for debt		0.0462
Measurement Input, Discount Rate \| Mortgages Payable \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for debt		0.0464
Measurement Input, Discount Rate \| Junior Subordinated Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for debt	0.0634	0.0705
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to loan-backed notes \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0725	0.0675
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to loan-backed notes \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0900	0.0925
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to credit risk \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0675	0.0675
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to credit risk \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0950	0.0975
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to secured borrowings \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0850	0.0875
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to secured borrowings \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0925	0.0950

RELATED-PARTY TRANSACTIONS (Details) $ / shares in Units, ft² in Thousands			1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 01, 2019 sudsidiary	May 10, 2018	Oct. 31, 2019 $ / shares shares	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Aug. 07, 2019 ft²	May 15, 2019 ft²	Dec. 31, 2018 USD ($)	Oct. 01, 2015	Mar. 11, 2014 USD ($)
Related-party transactions
Due to related parties				$ 6,740,000		$ 6,740,000				$ 10,951,000
Wholesaling agreement, percent of selling price fee per share		2.75%
Stock issuance costs						497,000	$ 1,124,000
Impairment of real estate				$ 0	$ 0	$ 69,000,000	0
CIM Urban REIT Management, L.P. \| 0 - 500,000,000
Related-party transactions
Quarterly fee percentage				0.25%		0.25%
CIM Urban REIT Management, L.P. \| 0 - 500,000,000 \| Minimum
Related-party transactions
Daily average adjusted fair value of investments				$ 0		$ 0
CIM Urban REIT Management, L.P. \| 0 - 500,000,000 \| Maximum
Related-party transactions
Daily average adjusted fair value of investments				$ 500,000,000		$ 500,000,000
CIM Urban REIT Management, L.P. \| 500,000,000 - 1,000,000,000
Related-party transactions
Quarterly fee percentage				0.2375%		0.2375%
CIM Urban REIT Management, L.P. \| 500,000,000 - 1,000,000,000 \| Minimum
Related-party transactions
Daily average adjusted fair value of investments				$ 500,000,000		$ 500,000,000
CIM Urban REIT Management, L.P. \| 500,000,000 - 1,000,000,000 \| Maximum
Related-party transactions
Daily average adjusted fair value of investments				$ 1,000,000,000		$ 1,000,000,000
CIM Urban REIT Management, L.P. \| 1,000,000,000 - 1,500,000,000
Related-party transactions
Quarterly fee percentage				0.225%		0.225%
CIM Urban REIT Management, L.P. \| 1,000,000,000 - 1,500,000,000 \| Minimum
Related-party transactions
Daily average adjusted fair value of investments				$ 1,000,000,000		$ 1,000,000,000
CIM Urban REIT Management, L.P. \| 1,000,000,000 - 1,500,000,000 \| Maximum
Related-party transactions
Daily average adjusted fair value of investments				$ 1,500,000,000		$ 1,500,000,000
CIM Urban REIT Management, L.P. \| 1,500,000,000 - 4,000,000,000
Related-party transactions
Quarterly fee percentage				0.2125%		0.2125%
CIM Urban REIT Management, L.P. \| 1,500,000,000 - 4,000,000,000 \| Minimum
Related-party transactions
Daily average adjusted fair value of investments				$ 1,500,000,000		$ 1,500,000,000
CIM Urban REIT Management, L.P. \| 1,500,000,000 - 4,000,000,000 \| Maximum
Related-party transactions
Daily average adjusted fair value of investments				$ 4,000,000,000		$ 4,000,000,000
CIM Urban REIT Management, L.P. \| 4,000,000,000 - 20,000,000,000
Related-party transactions
Quarterly fee percentage				0.10%		0.10%
CIM Urban REIT Management, L.P. \| 4,000,000,000 - 20,000,000,000 \| Minimum
Related-party transactions
Daily average adjusted fair value of investments				$ 4,000,000,000		$ 4,000,000,000
CIM Urban REIT Management, L.P. \| 4,000,000,000 - 20,000,000,000 \| Maximum
Related-party transactions
Daily average adjusted fair value of investments				20,000,000,000		20,000,000,000
CIM Urban REIT Management, L.P. \| Asset Management Fees
Related-party transactions
Fees				2,424,000	4,475,000	9,669,000	13,350,000
Due to related parties				2,457,000		2,457,000				4,540,000
CIM Urban REIT Management, L.P. \| Property Management Fees
Related-party transactions
Fees				494,000	1,084,000	2,106,000	3,289,000
CIM Management Entities
Related-party transactions
Due to related parties				2,454,000		2,454,000				3,202,000
CIM Management Entities \| Lease Commission Fees
Related-party transactions
Fees				32,000	67,000	610,000	286,000
CIM Management Entities \| Personnel Fees
Related-party transactions
Fees				837,000	1,256,000	3,873,000	4,523,000
CIM Management Entities \| Construction Management Fees
Related-party transactions
Fees				160,000	65,000	329,000	506,000
CIM Management Entities And Related Parties
Related-party transactions
Due to related parties										315,000
Due from related parties				40,000		40,000
CIM Service Provider, LLC \| Base Service Fee
Related-party transactions
Fees				275,000	270,000	827,000	809,000
Fees payable per year under agreement												$ 1,000,000
CIM Service Provider, LLC \| Master Services Agreement
Related-party transactions
Due to related parties				1,175,000		1,175,000				1,490,000
Compensation expensed for performing other services				572,000	583,000	1,630,000	2,138,000
CIM SBA Staffing, LLC \| Personnel Fees
Related-party transactions
Due to related parties				563,000		563,000				1,347,000
Deferred personnel costs				38,000	97,000	82,000	233,000
CIM SBA Staffing, LLC \| Expenses Related to Lending Segment Subject to Reimbursement
Related-party transactions
Fees				652,000	740,000	1,840,000	1,980,000
CIM SBA Staffing, LLC \| Expenses Related to Corporate Services Subject to Reimbursement
Related-party transactions
Fees				58,000	53,000	189,000	198,000
CIM Management Entities Affiliate
Related-party transactions
Lease renewal term											5 years
Rental and other property income				28,000	$ 27,000	83,000	$ 81,000
CIM Group \| Eleven Year Lease
Related-party transactions
Rental and other property income				356,000		562,000
Lease, term of contract									11 years
Net rentable area (in sq ft) \| ft²								30	32
CIM Capital, LLC
Related-party transactions
Number of subsidiaries \| sudsidiary	4
CCO Capital, LLC \| Wholesaling Agreement
Related-party transactions
Due to related parties				131,000		131,000				138,000
Deferred costs				503,000		503,000				$ 200,000
Stock issuance costs				$ 337,000		$ 439,000
Subsequent Event \| Administrator
Related-party transactions
Common stock acquired (in shares) \| shares			2,468,390
Common stock acquired, percentage of common stock outstanding			16.90%
Per share amount of shares acquired (in usd per share) \| $ / shares			$ 19.1685
Subsequent Event \| CIM Group And CIM Commercial Trust Corporation Officers And Directors
Related-party transactions
Common stock acquired, percentage of common stock outstanding			19.20%

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) officer	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Commitments and contingencies
Outstanding loan commitments to fund loans		$ 14,452		$ 14,452
Future obligations under leases to fund tenant improvements and other future construction obligation		8,827		8,827
Restricted cash	$ 21,524	11,507	$ 21,524	11,507	$ 21,524	$ 22,512
Right-of use asset		170		170
Lease liability		170		170
Rent expense		69		224
Rent expense			$ 65		$ 182
Minimum lease payments for remainder of fiscal year		64		64
Minimum lease payments for year ended December 31, 2020		$ 106		$ 106
Employment agreements \| Executive Officers
Commitments and contingencies
Number of officers covered under employment agreement \| officer				2
Multiplier used for the calculation of payments in the event of death of employee		2		2
Multiplier used for the calculation of payments in the event of disability to employee		1		1
Restricted Cash for Tenant Improvements
Commitments and contingencies
Restricted cash		$ 2,813		$ 2,813
City and County of San Francisco Real Property Transfer Tax Case \| Pending Litigation
Commitments and contingencies
Refund sought for penalties, interest and legal fees paid for real property transfer tax	$ 11,845

FUTURE MINIMUM LEASE RENTALS (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Leases, Operating [Abstract]
2019 (Three months ending December 31, 2019)	$ 12,237
2020	46,706
2021	40,832
2022	37,465
2023	34,370
Thereafter	83,981
Total	$ 255,591

CONCENTRATIONS (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
CONCENTRATIONS (Details) $ in Thousands	Sep. 30, 2019 USD ($) property state	Sep. 30, 2018	Sep. 30, 2019 USD ($) property state	Sep. 30, 2018	Dec. 31, 2018 USD ($) property state
Concentrations
Number of states in which properties are owned \| state	2		2		2
Office properties
Concentrations
Number of real estate properties owned	8		8		16
Hotel properties
Concentrations
Number of real estate properties owned	1		1		1
Parking garages
Concentrations
Number of real estate properties owned	1		1		2
Development site
Concentrations
Number of real estate properties owned	1		1		2
Parking lot
Concentrations
Number of real estate properties owned	1		1		1
Revenues \| Tenant Revenue Concentrations \| Governmental Tenants
Concentrations
Amounts due from tenant revenue concentrations \| $	$ 768		$ 768		$ 2,899
Revenues \| Tenant Revenue Concentrations \| Kaiser Foundation Health Plan, Inc.
Concentrations
Amounts due from tenant revenue concentrations \| $	$ 132		$ 132		$ 331
Revenues \| Tenant Revenue Concentrations \| Kaiser Foundation Health Plan, Inc. \| California
Concentrations
Number of properties occupied by tenant revenue concentrations			2
Revenues \| Geographical concentrations
Concentrations
Concentration risk, percent	100.00%	100.00%	100.00%	100.00%
Revenues \| Geographical concentrations \| California
Concentrations
Concentration risk, percent	84.10%	76.20%	77.70%	76.90%
Revenues \| Geographical concentrations \| Texas
Concentrations
Concentration risk, percent	7.40%	3.50%	5.10%	3.30%
Revenues \| Geographical concentrations \| Washington, D.C.
Concentrations
Concentration risk, percent	8.50%	20.30%	17.20%	19.80%
Real Estate Investments \| Geographical concentrations
Concentrations
Concentration risk, percent			100.00%		100.00%
Real Estate Investments \| Geographical concentrations \| California
Concentrations
Concentration risk, percent			94.80%		70.60%
Real Estate Investments \| Geographical concentrations \| Texas
Concentrations
Concentration risk, percent			5.20%		2.20%
Real Estate Investments \| Geographical concentrations \| Washington, D.C.
Concentrations
Concentration risk, percent			0.00%		27.20%
Office Properties Segment \| Revenues \| Tenant Revenue Concentrations \| Governmental Tenants
Concentrations
Concentration risk, percent	11.20%	25.30%	20.00%	25.40%
Office Properties Segment \| Revenues \| Tenant Revenue Concentrations \| Kaiser Foundation Health Plan, Inc.
Concentrations
Concentration risk, percent	22.20%	13.10%	15.60%	13.00%

SEGMENT DISCLOSURE - Operating Income (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($) property	Sep. 30, 2018 USD ($) property	Sep. 30, 2019 USD ($) property	Sep. 30, 2018 USD ($) property
Segment disclosure
Number of types of commercial real estate properties \| property	2	2	2	2
Pro forma revenue	$ 29,215	$ 47,607	$ 113,348	$ 147,445
Expenses:
Interest expense	2,403	6,965	8,998	20,409
General and administrative	1,384	1,205	4,793	6,496
EXPENSES	26,574	48,021	198,720	144,608
Segment net operating income	2,943	(414)	347,732	2,837
Reportable segments
Expenses:
Segment net operating income	12,927	25,332	55,754	82,909
Reportable segments \| Office
Segment disclosure
Pro forma revenue	16,885	36,440	72,380	109,141
Expenses:
Operating	7,205	14,459	29,677	39,770
General and administrative	41	83	397	1,062
EXPENSES	7,246	14,542	30,074	40,832
Segment net operating income	9,639	21,898	42,306	68,309
Reportable segments \| Hotel
Segment disclosure
Pro forma revenue	8,511	8,542	29,430	29,980
Expenses:
Operating	6,081	5,946	19,520	19,316
General and administrative	31	0	108	18
EXPENSES	6,112	5,946	19,628	19,334
Segment net operating income	2,399	2,596	9,802	10,646
Reportable segments \| Lending
Segment disclosure
Pro forma revenue	2,411	2,625	8,312	8,324
Expenses:
Interest expense	365	633	1,483	1,117
Fees to related party	652	740	1,840	1,980
General and administrative	505	414	1,343	1,273
EXPENSES	1,522	1,787	4,666	4,370
Segment net operating income	$ 889	$ 838	$ 3,646	$ 3,954

SEGMENT DISCLOSURE - Reconciliation Of Segment Operating Income (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment disclosure
Interest and other income	$ 4,175,000			$ 3,286,000			$ 12,955,000	$ 10,306,000
Asset management and other fees to related parties	(3,981,000)			(6,121,000)			(14,155,000)	(18,475,000)
Interest expense	(2,403,000)			(6,965,000)			(8,998,000)	(20,409,000)
General and administrative	(1,384,000)			(1,205,000)			(4,793,000)	(6,496,000)
Transaction costs	(340,000)			(15,000)			(600,000)	(359,000)
Depreciation and amortization	(5,180,000)			(13,310,000)			(21,995,000)	(39,783,000)
Loss on early extinguishment of debt	0			0			(29,982,000)	0
Impairment of real estate	0			0			(69,000,000)	0
Gain on sale of real estate	302,000			0			433,104,000	0
Income (loss) before provision for income taxes	2,943,000			(414,000)			347,732,000	2,837,000
Provision for income taxes	(87,000)			(115,000)			(686,000)	(795,000)
NET INCOME (LOSS)	2,856,000	$ 52,567,000	$ 291,623,000	(529,000)	$ 1,949,000	$ 622,000	347,046,000	2,042,000
Net (income) loss attributable to noncontrolling interests	(8,000)			1,000			165,000	(15,000)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	2,848,000			(528,000)			347,211,000	2,027,000
Reportable segments
Segment disclosure
Income (loss) before provision for income taxes	12,927,000			25,332,000			55,754,000	82,909,000
Corporate and Reconciling Items
Segment disclosure
Interest and other income	1,408,000			0			3,226,000	0
Asset management and other fees to related parties	(3,329,000)			(5,381,000)			(12,315,000)	(16,495,000)
Interest expense	(2,038,000)			(6,332,000)			(7,515,000)	(19,292,000)
General and administrative	$ (807,000)			$ (708,000)			$ (2,945,000)	$ (4,143,000)

SEGMENT DISCLOSURE - Assets and Capital Expenditures and Loan Originations (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Segment disclosure
Total assets	$ 659,852		$ 1,342,401
Total capital expenditures	11,346	$ 12,805
Loan originations	27,421	53,320
Total capital expenditures and loan originations	38,767	66,125
Reportable segments \| Office
Segment disclosure
Total assets	458,979		1,094,269
Total capital expenditures	9,500	11,462
Reportable segments \| Hotel
Segment disclosure
Total assets	105,478		105,845
Total capital expenditures	1,846	$ 1,343
Reportable segments \| Lending
Segment disclosure
Total assets	84,588		97,465
Non-segment
Segment disclosure
Total assets	$ 10,807		$ 44,822

PRO FORMA FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Disposal Group
Pro forma revenue	$ 29,215			$ 47,607			$ 113,348	$ 147,445
Pro forma net income (loss)	2,856	$ 52,567	$ 291,623	(529)	$ 1,949	$ 622	347,046	2,042
Pro forma net income (loss) attributable to the Company	$ 2,848			$ (528)			$ 347,211	$ 2,027
Pro forma net (loss) income attributable to common stockholders per share, basic	$ (0.20)			$ (0.35)			$ 27.36	$ (0.77)
Pro forma net (loss) income attributable to common stockholders per share, diluted	$ (0.20)			$ (0.35)			$ 25.36	$ (0.77)
Pro Forma
Disposal Group
Pro forma revenue	$ 27,047			$ 41,193			$ 97,971	$ 128,074
Pro forma net income (loss)	1,513			(1,124)			412,341	102
Pro forma net income (loss) attributable to the Company	1,510			(1,131)			412,310	65
Pro forma net (loss) income attributable to common stockholders	$ (2,960)			$ (5,051)			$ 399,368	$ (11,312)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.