Document Entity Information Doc
Document Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 10, 2020 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Terra Secured Income Fund 5, LLC | |
Entity Central Index Key | 0001581874 | |
Document Transition Report | false | |
Entity File Number | 000-55780 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0967526 | |
Entity Address, Address Line One | 550 Fifth Avenue | |
Entity Address, Address Line Two | 6th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 212 | |
Local Phone Number | 753-5100 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 6,637.7 | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Title of 12(g) Security | Units of Limited Liability Company Interests |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Cash and cash equivalents | $ 400,213 | $ 97,937 |
Other assets | 11,573 | 15,064 |
Assets | 238,921,655 | 247,376,246 |
Liabilities | ||
Accounts payable and accrued expenses | 216,691 | 271,333 |
Due to related party | 0 | 38,000 |
Total liabilities | 216,691 | 309,333 |
Commitments and Contingencies | ||
Members' capital: | ||
Managing member | 0 | 0 |
Non-managing members | 238,704,964 | 247,066,913 |
Total members’ capital | 238,704,964 | 247,066,913 |
Total liabilities and members' capital | $ 238,921,655 | $ 247,376,246 |
Net asset value per unit | $ 35,962 | $ 37,222 |
Terra JV | ||
Assets [Abstract] | ||
Equity Investment in Terra JV, LLC at Fair Value | $ 238,509,869 | $ 0 |
Terra Property Trust | ||
Assets [Abstract] | ||
Equity Investment in Terra JV, LLC at Fair Value | $ 0 | $ 247,263,245 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Terra JV | ||
Investment Owned, at Cost | $ 238,509,445 | $ 0 |
Terra Property Trust | ||
Investment Owned, at Cost | $ 0 | $ 243,924,852 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investment Income, Dividend | $ 681,685 | $ 0 | $ 1,946,123 | $ 3,922,875 |
Other operating income | 34 | 90 | 178 | 392 |
Total investment income | 681,719 | 90 | 1,946,301 | 3,923,267 |
Operating expenses | ||||
Professional fees | 161,100 | 98,119 | 335,199 | 271,333 |
Other | 1,295 | 6,076 | 2,744 | 8,959 |
Total operating expenses | 162,395 | 104,195 | 337,943 | 280,292 |
Net investment income (loss) | 519,324 | (104,105) | 1,608,358 | 3,642,975 |
Net change in unrealized appreciation on investment | 2,813,973 | 1,609,008 | 527,675 | 3,198,259 |
Net increase in members’ capital resulting from operations | $ 3,333,297 | $ 1,504,903 | $ 2,136,033 | $ 6,841,234 |
Per unit data: | ||||
Net investment income (loss) per unit | $ 78 | $ (16) | $ 242 | $ 549 |
Net increase in members’ capital resulting from operations per unit | $ 502 | $ 227 | $ 322 | $ 1,030 |
Weighted average units outstanding | 6,638 | 6,639 | 6,638 | 6,639 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Members' Capital - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Changes in Members' Capital [Roll Forward] | ||||
Balance, beginning of period | $ 238,402,378 | $ 260,948,679 | $ 247,066,913 | $ 263,080,442 |
Capital distributions | (3,030,711) | (7,468,095) | (10,497,982) | (14,936,189) |
Increase in members’ capital resulting from operations: | ||||
Net investment income | 519,324 | (104,105) | 1,608,358 | 3,642,975 |
Net change in unrealized appreciation on investment | 2,813,973 | 1,609,008 | 527,675 | 3,198,259 |
Net increase in members’ capital resulting from operations | 3,333,297 | 1,504,903 | 2,136,033 | 6,841,234 |
Balance, end of period | 238,704,964 | 254,985,487 | 238,704,964 | 254,985,487 |
Managing | ||||
Changes in Members' Capital [Roll Forward] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Capital distributions | 0 | 0 | 0 | 0 |
Increase in members’ capital resulting from operations: | ||||
Net investment income | 0 | 0 | 0 | 0 |
Net change in unrealized appreciation on investment | 0 | 0 | 0 | 0 |
Net increase in members’ capital resulting from operations | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Non-managing | ||||
Changes in Members' Capital [Roll Forward] | ||||
Balance, beginning of period | 238,402,378 | 260,948,679 | 247,066,913 | 263,080,442 |
Capital distributions | (3,030,711) | (7,468,095) | (10,497,982) | (14,936,189) |
Increase in members’ capital resulting from operations: | ||||
Net investment income | 519,324 | (104,105) | 1,608,358 | 3,642,975 |
Net change in unrealized appreciation on investment | 2,813,973 | 1,609,008 | 527,675 | 3,198,259 |
Net increase in members’ capital resulting from operations | 3,333,297 | 1,504,903 | 2,136,033 | 6,841,234 |
Balance, end of period | $ 238,704,964 | $ 254,985,487 | $ 238,704,964 | $ 254,985,487 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net increase in members’ capital resulting from operations | $ 2,136,033 | $ 6,841,234 |
Adjustments to reconcile net increase in members’ capital resulting from operations to net cash provided by operating activities: | ||
Return of capital on investment | 9,281,051 | 11,260,039 |
Net change in unrealized appreciation on investment | (527,675) | (3,198,259) |
Changes in operating assets and liabilities: | ||
Decrease (increase) in other assets | 3,491 | (14,260) |
(Decrease) increase in accounts payable and accrued expenses | (54,642) | 8,804 |
Decrease in due to related party | (38,000) | 0 |
Net cash provided by operating activities | 10,800,258 | 14,897,558 |
Cash flows from financing activities: | ||
Distributions paid | (10,497,982) | (14,936,189) |
Net cash used in financing activities | (10,497,982) | (14,936,189) |
Net increase (decrease) in cash and cash equivalents | 302,276 | (38,631) |
Cash and cash equivalents at beginning of period | 97,937 | 131,784 |
Cash and cash equivalents at end of period | 400,213 | 93,153 |
Supplemental Non-Cash Disclosure: | ||
Transfer of ownership interest in Terra Property Trust, Inc. to Terra JV, LLC (Note 3) | $ 244,006,890 | $ 0 |
Consolidated Schedules of Inves
Consolidated Schedules of Investments Statement - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2019 | ||||
Schedule of Investments | |||||
Members' Capital | $ 238,704,964 | $ 247,066,913 | |||
Debt Securities | $ 3,300,000 | ||||
Series A Preferred Stock | Non-controlled | City Office REIT, Inc | Initial Investment | |||||
Schedule of Investments | |||||
Interest Rate | [1] | 6.63% | |||
Acquisition Date | [1] | Mar. 19, 2020 | |||
Maturity Date | [1] | Oct. 4, 2021 | |||
Amortized Cost | [1] | $ 104,653 | |||
Fair Value | [1] | $ 136,529 | |||
% of Members Capital | [1],[2] | 0.04% | |||
Preferred Stock, Shares Issued | [1] | 5,768 | |||
Series A Preferred Stock | Non-controlled | City Office REIT, Inc | Second Investment | |||||
Schedule of Investments | |||||
Interest Rate | [1] | 6.63% | |||
Acquisition Date | [1] | Mar. 26, 2020 | |||
Maturity Date | [1] | Oct. 4, 2021 | |||
Amortized Cost | [1] | $ 63,910 | |||
Fair Value | [1] | $ 99,556 | |||
% of Members Capital | [1],[2] | 0.04% | |||
Preferred Stock, Shares Issued | [1] | 4,206 | |||
Series A Preferred Stock | Non-controlled | Pro Rata | City Office REIT, Inc | Initial Investment | |||||
Schedule of Investments | |||||
Fair Value | [1],[3] | $ 104,445 | |||
Series A Preferred Stock | Non-controlled | Pro Rata | City Office REIT, Inc | Second Investment | |||||
Schedule of Investments | |||||
Fair Value | [1],[3] | 76,160 | |||
Preferred Stock | Non-controlled | |||||
Schedule of Investments | |||||
Amortized Cost | [1] | 168,563 | |||
Fair Value | [1] | $ 236,085 | |||
% of Members Capital | [1],[2] | 0.08% | |||
Preferred Stock | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | [1],[3] | $ 180,605 | |||
Terra Property Trust | |||||
Schedule of Investments | |||||
Percent of Common Stock Direct Owned | 98.60% | ||||
Percent Of Common Stock Indrect Owned | 76.50% | ||||
Amortized Cost | $ 0 | $ 243,924,852 | |||
Fair Value | 0 | $ 247,263,245 | |||
% of Members Capital | 100.10% | ||||
Real estate | $ 75,694,708 | $ 77,596,475 | |||
Terra Property Trust | Controlled | |||||
Schedule of Investments | |||||
Percent of Common Stock Direct Owned | 98.60% | ||||
Percent Of Common Stock Indrect Owned | 76.50% | ||||
Common Stock, Shares, Outstanding | 14,912,990 | ||||
Amortized Cost | $ 243,924,852 | ||||
Fair Value | $ 247,263,245 | ||||
% of Members Capital | 100.00% | 100.10% | |||
Terra JV | |||||
Schedule of Investments | |||||
Amortized Cost | $ 238,509,445 | $ 0 | |||
Fair Value | $ 238,509,869 | $ 0 | |||
% of Members Capital | 99.90% | ||||
Terra JV | Non-controlled | |||||
Schedule of Investments | |||||
Equity Method Investment, Ownership Percentage | 87.60% | ||||
Initial Acquisition | Terra Property Trust | Controlled | |||||
Schedule of Investments | |||||
Acquisition Date | Jan. 1, 2016 | ||||
Initial Acquisition | Terra JV | Non-controlled | |||||
Schedule of Investments | |||||
Acquisition Date | Mar. 2, 2020 | ||||
Subsequent Acquisition | Terra Property Trust | Controlled | |||||
Schedule of Investments | |||||
Acquisition Date | Mar. 7, 2016 | ||||
UNITED STATES | Terra Property Trust | |||||
Schedule of Investments | |||||
Principal Amount | $ 414,103,939 | $ 377,388,317 | |||
Amortized Cost | 415,762,576 | 378,612,768 | |||
Fair Value | [4] | 412,675,853 | 379,160,415 | ||
UNITED STATES | Terra Property Trust | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 315,697,028 | [3] | $ 373,852,169 | [5] | |
% of Members Capital | 132.30% | [2] | 151.30% | [6] | |
UNITED STATES | Terra Property Trust | Mezzanine Loan | Non-controlled | |||||
Schedule of Investments | |||||
Principal Amount | $ 36,573,007 | $ 42,113,654 | |||
Amortized Cost | 37,062,576 | 42,671,330 | |||
Fair Value | 36,672,950 | [4] | 42,673,996 | ||
UNITED STATES | Terra Property Trust | Mezzanine Loan | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | [3] | $ 28,054,807 | $ 42,076,559 | ||
% of Members Capital | [2] | 11.90% | 16.90% | ||
UNITED STATES | Terra Property Trust | Preferred Equity Investment | Non-controlled | |||||
Schedule of Investments | |||||
Principal Amount | $ 155,216,422 | $ 157,144,040 | |||
Amortized Cost | 155,798,883 | 157,737,763 | |||
Fair Value | [4] | 153,527,572 | 157,497,299 | ||
UNITED STATES | Terra Property Trust | Preferred Equity Investment | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 117,448,593 | [3] | $ 155,292,337 | [5] | |
% of Members Capital | 49.20% | [2] | 63.00% | [6] | |
UNITED STATES | Terra Property Trust | First Mortgage | Non-controlled | |||||
Schedule of Investments | |||||
Principal Amount | $ 222,314,510 | $ 178,130,623 | |||
Amortized Cost | 222,901,117 | 178,203,675 | |||
Fair Value | [4] | 222,475,331 | 178,989,120 | ||
UNITED STATES | Terra Property Trust | First Mortgage | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 170,193,628 | [3] | $ 176,483,273 | [5] | |
% of Members Capital | 71.30% | [2] | 71.30% | [6] | |
UNITED STATES | Terra Property Trust | Real Estate | Non-controlled | |||||
Schedule of Investments | |||||
Real estate | $ 63,966,026 | $ 66,171,666 | |||
Mortgage loan payable | 44,481,855 | 44,614,480 | |||
Net Real Estate Investment | $ 19,484,171 | $ 21,557,186 | |||
UNITED STATES | Terra Property Trust | Real Estate | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
% of Members Capital | 6.20% | [2],[7] | 8.60% | [6] | |
Net Real Estate Investment | $ 14,905,391 | [3] | $ 21,255,385 | [5] | |
UNITED STATES | Obligations Under Participation Agreements | Terra Property Trust | |||||
Schedule of Investments | |||||
Principal Amount | 78,116,748 | 102,564,795 | [8],[9],[10],[11],[12] | ||
Amortized Cost | 78,246,519 | 103,186,327 | [8],[9],[10],[11],[12] | ||
Fair Value | [4] | 77,898,387 | 103,188,783 | [8],[9],[10],[11],[12] | |
UNITED STATES | Obligations Under Participation Agreements | Terra Property Trust | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 59,592,266 | [3] | $ 101,744,140 | [5],[8],[9],[10],[11],[12] | |
% of Members Capital | 25.10% | [2] | 41.20% | [6],[8],[9],[10],[11],[12] | |
UNITED STATES | Investment Net | Terra Property Trust | |||||
Schedule of Investments | |||||
Principal Amount | $ 335,987,191 | $ 274,823,522 | |||
Amortized Cost | 336,201,763 | 275,426,441 | |||
Fair Value | [4] | 334,777,466 | 275,971,632 | ||
Allowance for Loan and Lease Losses, Real Estate | (1,314,294) | ||||
UNITED STATES | Investment Net | Terra Property Trust | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 256,104,762 | [3] | $ (272,108,029) | [5] | |
% of Members Capital | 107.20% | [2] | 110.10% | [6] | |
UNITED STATES | CA | Terra Property Trust | Real Estate | Office Building | Non-controlled | |||||
Schedule of Investments | |||||
Acquisition Date | [13] | Jul. 30, 2018 | Jul. 30, 2018 | ||
Real estate | [13] | $ 50,570,596 | $ 52,776,236 | ||
Mortgage loan payable | [13] | 44,481,855 | 44,614,480 | ||
Net Real Estate Investment | [13] | $ 6,088,741 | 8,161,756 | ||
Financing Receivable, before Allowance for Credit Loss | $ 54,000,000 | ||||
UNITED STATES | CA | Terra Property Trust | Real Estate | Office Building | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
% of Members Capital | [7],[13] | 2.00% | [2] | 3.30% | [6] |
Net Real Estate Investment | [13] | $ 4,657,887 | [3] | $ 8,047,491 | [5] |
UNITED STATES | PA | Terra Property Trust | Real Estate | Land | Non-controlled | |||||
Schedule of Investments | |||||
Acquisition Date | [14] | Jan. 9, 2019 | Jan. 9, 2019 | ||
Real estate | [14] | $ 13,395,430 | $ 13,395,430 | ||
Mortgage loan payable | [14] | 0 | 0 | ||
Net Real Estate Investment | [14] | $ 13,395,430 | $ 13,395,430 | ||
UNITED STATES | PA | Terra Property Trust | Real Estate | Land | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
% of Members Capital | [7],[14] | 4.20% | [2] | 5.30% | [6] |
Net Real Estate Investment | [14] | $ 10,247,504 | [3] | $ 13,207,894 | [5] |
150 Blackstone River Road, LLC | UNITED STATES | MA | Terra Property Trust | Mezzanine Loan | Industrial | Non-controlled | |||||
Schedule of Investments | |||||
Mortgage Loans On Real Estate Coupon Rate | 8.50% | 8.50% | |||
Interest Rate | 8.50% | 8.50% | |||
Exit Fee | 0.00% | 0.00% | |||
Acquisition Date | Sep. 21, 2017 | Sep. 21, 2017 | |||
Maturity Date | Sep. 6, 2027 | Sep. 6, 2027 | |||
Principal Amount | $ 7,000,000 | $ 7,000,000 | |||
Amortized Cost | 7,000,000 | 7,000,000 | |||
Fair Value | 6,866,583 | [4] | 7,081,127 | ||
150 Blackstone River Road, LLC | UNITED STATES | MA | Terra Property Trust | Mezzanine Loan | Industrial | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | [3] | $ 5,252,936 | $ 6,981,991 | ||
% of Members Capital | [2] | 2.20% | 2.80% | ||
The Bristol at Southport, LLC | UNITED STATES | WA | Terra Property Trust | Preferred Equity Investment | Multifamily | Non-controlled | |||||
Schedule of Investments | |||||
Mortgage Loans On Real Estate Coupon Rate | 12.00% | [15] | 12.00% | [8],[10],[11],[12] | |
Interest Rate | 12.00% | [15] | 12.00% | [8],[10],[11],[12] | |
Exit Fee | 1.00% | [15] | 1.00% | [8],[10],[11],[12] | |
Acquisition Date | Sep. 22, 2017 | [15] | Sep. 22, 2017 | [8],[10],[11],[12] | |
Maturity Date | Sep. 22, 2022 | [15] | Sep. 22, 2022 | [8],[10],[11],[12] | |
Principal Amount | $ 23,500,000 | [15] | $ 23,500,000 | [8],[10],[11],[12] | |
Amortized Cost | 23,671,815 | [15] | 23,661,724 | [8],[10],[11],[12] | |
Fair Value | [4] | 23,951,192 | [15] | 23,769,361 | [8],[10],[11],[12] |
The Bristol at Southport, LLC | UNITED STATES | WA | Terra Property Trust | Preferred Equity Investment | Multifamily | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 18,322,662 | [3],[15] | $ 23,436,590 | [5],[8],[10],[11],[12] | |
% of Members Capital | 7.70% | [2],[15] | 9.50% | [6],[8],[10],[11],[12] | |
2539 Morse, LLC | UNITED STATES | CA | Terra Property Trust | Mezzanine Loan | Student Housing | Non-controlled | |||||
Schedule of Investments | |||||
Mortgage Loans On Real Estate Coupon Rate | [10],[11],[12] | 11.00% | |||
Interest Rate | [10],[11],[12] | 11.00% | |||
Exit Fee | [10],[11],[12] | 1.00% | |||
Acquisition Date | [10],[11],[12] | Oct. 20, 2017 | |||
Maturity Date | [10],[11],[12] | Nov. 1, 2020 | |||
Principal Amount | [10],[11],[12] | $ 7,000,000 | |||
Amortized Cost | [10],[11],[12] | 7,067,422 | |||
Fair Value | [10],[11],[12] | 7,069,355 | |||
2539 Morse, LLC | UNITED STATES | CA | Terra Property Trust | Mezzanine Loan | Student Housing | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | [5],[10],[11],[12] | $ 6,970,384 | |||
% of Members Capital | [6],[10],[11],[12] | 2.80% | |||
Austin H. I. Owner LLC | UNITED STATES | TEXAS | Terra Property Trust | Mezzanine Loan | Hotel | Non-controlled | |||||
Schedule of Investments | |||||
Mortgage Loans On Real Estate Coupon Rate | 12.50% | 12.50% | [11],[12] | ||
Interest Rate | 12.50% | 12.50% | [11],[12] | ||
Exit Fee | 1.00% | 1.00% | [11],[12] | ||
Acquisition Date | Sep. 30, 2015 | Sep. 30, 2015 | [11],[12] | ||
Maturity Date | Oct. 6, 2020 | Oct. 6, 2020 | [11],[12] | ||
Principal Amount | $ 3,613,000 | $ 3,500,000 | [11],[12] | ||
Amortized Cost | 3,647,936 | 3,531,776 | [11],[12] | ||
Fair Value | 3,645,676 | [4] | 3,534,499 | [11],[12] | |
Austin H. I. Owner LLC | UNITED STATES | TEXAS | Terra Property Trust | Mezzanine Loan | Hotel | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 2,788,942 | [3] | $ 3,485,016 | [5],[11],[12] | |
% of Members Capital | 1.20% | [2] | 1.40% | [6],[11],[12] | |
High Pointe Mezzanine Investments,, LLC | UNITED STATES | SOUTH CAROLINA | Terra Property Trust | Mezzanine Loan | Student Housing | Non-controlled | |||||
Schedule of Investments | |||||
Mortgage Loans On Real Estate Coupon Rate | 15.00% | [16] | 13.00% | [10],[12] | |
Interest Rate | 15.00% | [16] | 13.00% | [10],[12] | |
Exit Fee | 1.00% | [16] | 1.00% | [10],[12] | |
Acquisition Date | Dec. 27, 2013 | [16] | Dec. 27, 2013 | [10],[12] | |
Maturity Date | Jan. 6, 2024 | [16] | Jan. 6, 2024 | [10],[12] | |
Principal Amount | $ 3,000,000 | [16] | $ 3,000,000 | [10],[12] | |
Amortized Cost | 3,233,789 | [16] | 3,263,285 | [10],[12] | |
Fair Value | 2,984,870 | [4],[16] | 3,115,139 | [10],[12] | |
High Pointe Mezzanine Investments,, LLC | UNITED STATES | SOUTH CAROLINA | Terra Property Trust | Mezzanine Loan | Student Housing | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 2,283,426 | [3],[16] | $ 3,071,527 | [5],[10],[12] | |
% of Members Capital | 1.00% | [2],[16] | 1.20% | [6],[10],[12] | |
LD Milipitas Mezz, LLC | UNITED STATES | CA | Terra Property Trust | Mezzanine Loan | Hotel | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 13.00% | [17] | 13.00% | [18] | |
Loans Receivable, Description of Variable Rate Basis | LIBOR | [17] | LIBOR | [18] | |
Exit Fee | 1.00% | [17] | 1.00% | [18] | |
Acquisition Date | Jun. 27, 2018 | [17] | Jun. 27, 2018 | [18] | |
Maturity Date | Jun. 27, 2021 | [17] | Jun. 27, 2021 | [18] | |
Principal Amount | $ 4,250,000 | [17] | $ 3,120,887 | [18] | |
Amortized Cost | 4,297,989 | [17] | 3,150,546 | [18] | |
Fair Value | 4,297,730 | [4],[17] | 3,204,261 | [18] | |
LD Milipitas Mezz, LLC | UNITED STATES | CA | Terra Property Trust | Mezzanine Loan | Hotel | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 3,287,763 | [3],[17] | $ 3,159,401 | [5],[18] | |
% of Members Capital | 1.40% | [2],[17] | 1.30% | [6],[18] | |
LD Milipitas Mezz, LLC | UNITED STATES | CA | Terra Property Trust | Mezzanine Loan | Hotel | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | 10.25% | [17] | 10.25% | [18] | |
LIBOR Floor | 2.75% | [17] | 2.75% | [18] | |
SparQ Mezz Borrower, LLC | UNITED STATES | CA | Terra Property Trust | Mezzanine Loan | Multifamily | Non-controlled | |||||
Schedule of Investments | |||||
Mortgage Loans On Real Estate Coupon Rate | 12.00% | [15] | 12.00% | [10],[11],[12] | |
Interest Rate | 12.00% | [15] | 12.00% | [10],[11],[12] | |
Exit Fee | 1.00% | [15] | 1.00% | [10],[11],[12] | |
Acquisition Date | Sep. 29, 2017 | [15] | Sep. 29, 2017 | [10],[11],[12] | |
Maturity Date | Oct. 1, 2020 | [15] | Oct. 1, 2020 | [10],[11],[12] | |
Principal Amount | $ 8,700,000 | [15] | $ 8,700,000 | [10],[11],[12] | |
Amortized Cost | 8,785,415 | [15] | 8,783,139 | [10],[11],[12] | |
Fair Value | 8,756,821 | [4],[15] | 8,786,127 | [10],[11],[12] | |
SparQ Mezz Borrower, LLC | UNITED STATES | CA | Terra Property Trust | Mezzanine Loan | Multifamily | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 6,698,968 | [3],[15] | $ 8,663,121 | [5],[10],[11],[12] | |
% of Members Capital | 2.90% | [2],[15] | 3.50% | [6],[10],[11],[12] | |
Terra JV | Terra Property Trust | |||||
Schedule of Investments | |||||
Equity Method Investment, Ownership Percentage | 87.40% | ||||
Stonewall Station Mezz LLC | UNITED STATES | NORTH CAROLINA | Terra Property Trust | Mezzanine Loan | Hotel | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 14.00% | [19],[20] | 14.00% | [9],[12] | |
Exit Fee | 1.00% | [19],[20] | 1.00% | [9],[12] | |
Acquisition Date | May 31, 2018 | [19],[20] | May 31, 2018 | [9],[12] | |
Maturity Date | May 20, 2021 | [19],[20] | May 20, 2021 | [9],[12] | |
Principal Amount | $ 10,010,007 | [19],[20] | $ 9,792,767 | [9],[12] | |
Amortized Cost | 10,097,447 | [19],[20] | 9,875,162 | [9],[12] | |
Fair Value | 10,121,270 | [4],[19],[20] | 9,883,488 | [9],[12] | |
Stonewall Station Mezz LLC | UNITED STATES | NORTH CAROLINA | Terra Property Trust | Mezzanine Loan | Hotel | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 7,742,772 | [3],[19],[20] | $ 9,745,119 | [5],[9],[12] | |
% of Members Capital | 3.20% | [2],[19],[20] | 3.90% | [6],[9],[12] | |
Stonewall Station Mezz LLC | UNITED STATES | NORTH CAROLINA | Terra Property Trust | Mezzanine Loan | Hotel | Current | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 12.00% | [19],[20] | 12.00% | [9],[12] | |
Stonewall Station Mezz LLC | UNITED STATES | NORTH CAROLINA | Terra Property Trust | Mezzanine Loan | Hotel | PIK | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 2.00% | [19],[20] | 2.00% | [9],[12] | |
370 Lex Part Deux, LLC | UNITED STATES | NY | Terra Property Trust | Preferred Equity Investment | Office Building | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 10.70% | [19],[20] | 10.70% | [8],[9],[12] | |
Loans Receivable, Description of Variable Rate Basis | LIBOR | [19],[20] | LIBOR | [8],[9],[12] | |
Exit Fee | 0.00% | [19],[20] | 0.00% | [8],[9],[12] | |
Acquisition Date | Dec. 17, 2018 | [19],[20] | Dec. 17, 2018 | [8],[9],[12] | |
Maturity Date | Jan. 9, 2022 | [19],[20] | Jan. 9, 2022 | [8],[9],[12] | |
Principal Amount | $ 51,037,529 | [19],[20] | $ 48,349,948 | [8],[9],[12] | |
Amortized Cost | 51,094,313 | [19],[20] | 48,425,659 | [8],[9],[12] | |
Fair Value | [4] | 49,728,042 | [19],[20] | 48,236,458 | [8],[9],[12] |
370 Lex Part Deux, LLC | UNITED STATES | NY | Terra Property Trust | Preferred Equity Investment | Office Building | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 38,041,952 | [3],[19],[20] | $ 47,561,148 | [5],[8],[9],[12] | |
% of Members Capital | 15.90% | [2],[19],[20] | 19.30% | [6],[8],[9],[12] | |
370 Lex Part Deux, LLC | UNITED STATES | NY | Terra Property Trust | Preferred Equity Investment | Office Building | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | 8.25% | [19],[20] | 8.25% | [8],[9],[12] | |
LIBOR Floor | 2.44% | [19],[20] | 2.44% | [8],[9],[12] | |
City Gardens 333 LLC | UNITED STATES | CA | Terra Property Trust | Preferred Equity Investment | Multifamily | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 12.00% | [19],[20] | 12.00% | [8],[9],[10],[11],[12] | |
Loans Receivable, Description of Variable Rate Basis | LIBOR | [19],[20] | LIBOR | [8],[9],[10],[11],[12] | |
Exit Fee | 0.00% | [19],[20] | 0.00% | [8],[9],[10],[11],[12] | |
Acquisition Date | Apr. 11, 2018 | [19],[20] | Apr. 11, 2018 | [8],[9],[10],[11],[12] | |
Maturity Date | Apr. 1, 2021 | [19],[20] | Apr. 1, 2021 | [8],[9],[10],[11],[12] | |
Principal Amount | $ 27,449,731 | [19],[20] | $ 28,049,717 | [8],[9],[10],[11],[12] | |
Amortized Cost | 27,461,070 | [19],[20] | 28,056,179 | [8],[9],[10],[11],[12] | |
Fair Value | [4] | 27,446,297 | [19],[20] | 28,057,779 | [8],[9],[10],[11],[12] |
City Gardens 333 LLC | UNITED STATES | CA | Terra Property Trust | Preferred Equity Investment | Multifamily | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 20,996,417 | [3],[19],[20] | $ 27,664,970 | [5],[8],[9],[10],[11],[12] | |
% of Members Capital | 8.80% | [2],[19],[20] | 11.20% | [6],[8],[9],[10],[11],[12] | |
City Gardens 333 LLC | UNITED STATES | CA | Terra Property Trust | Preferred Equity Investment | Multifamily | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | 9.95% | [19],[20] | 9.95% | [8],[9],[10],[11],[12] | |
LIBOR Floor | 2.00% | [19],[20] | 2.00% | [8],[9],[10],[11],[12] | |
NB Private Capital LLC | UNITED STATES | Other States | Terra Property Trust | Preferred Equity Investment | Student Housing | Non-controlled | |||||
Schedule of Investments | |||||
Mortgage Loans On Real Estate Coupon Rate | [15],[19],[20] | 16.00% | |||
Interest Rate | 16.00% | [15],[19],[20] | 14.00% | [8],[9],[10],[11],[12] | |
Loans Receivable, Description of Variable Rate Basis | [8],[9],[10],[11],[12] | LIBOR | |||
Exit Fee | 1.00% | [15],[19],[20] | 1.00% | [8],[9],[10],[11],[12] | |
Acquisition Date | Jul. 27, 2018 | [15],[19],[20] | Jul. 27, 2018 | [8],[9],[10],[11],[12] | |
Maturity Date | Apr. 16, 2021 | [15],[19],[20] | Apr. 16, 2021 | [8],[9],[10],[11],[12] | |
Principal Amount | $ 19,670,115 | [15],[19],[20] | $ 20,000,000 | [8],[9],[10],[11],[12] | |
Amortized Cost | 19,837,285 | [15],[19],[20] | 20,166,610 | [8],[9],[10],[11],[12] | |
Fair Value | [4] | 19,864,687 | [15],[19],[20] | 20,180,782 | [8],[9],[10],[11],[12] |
NB Private Capital LLC | UNITED STATES | Other States | Terra Property Trust | Preferred Equity Investment | Student Housing | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 15,196,486 | [3],[15],[19],[20] | $ 19,898,251 | [5],[8],[9],[10],[11],[12] | |
% of Members Capital | 6.30% | [2],[15],[19],[20] | 8.10% | [6],[8],[9],[10],[11],[12] | |
NB Private Capital LLC | UNITED STATES | Other States | Terra Property Trust | Preferred Equity Investment | Student Housing | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | [8],[9],[10],[11],[12] | 10.50% | |||
LIBOR Floor | [8],[9],[10],[11],[12] | 3.50% | |||
Orange Grove Property Investors LLC | UNITED STATES | CA | Terra Property Trust | Preferred Equity Investment | Condominium | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 12.00% | [19],[20] | 12.00% | [9],[12] | |
Loans Receivable, Description of Variable Rate Basis | LIBOR | [19],[20] | LIBOR | [9],[12] | |
Exit Fee | 1.00% | [19],[20] | 1.00% | [9],[12] | |
Acquisition Date | May 24, 2018 | [19],[20] | May 24, 2018 | [9],[12] | |
Maturity Date | Jun. 1, 2021 | [19],[20] | Jun. 1, 2021 | [9],[12] | |
Principal Amount | $ 10,600,000 | [19],[20] | $ 10,600,000 | [9],[12] | |
Amortized Cost | 10,699,082 | [19],[20] | 10,696,587 | [9],[12] | |
Fair Value | [4] | 10,680,949 | [19],[20] | 10,695,415 | [9],[12] |
Orange Grove Property Investors LLC | UNITED STATES | CA | Terra Property Trust | Preferred Equity Investment | Condominium | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 8,170,926 | [3],[19],[20] | $ 10,545,679 | [5],[9],[12] | |
% of Members Capital | 3.40% | [2],[19],[20] | 4.30% | [6],[9],[12] | |
Orange Grove Property Investors LLC | UNITED STATES | CA | Terra Property Trust | Preferred Equity Investment | Condominium | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | 8.00% | [19],[20] | 8.00% | [9],[12] | |
LIBOR Floor | 4.00% | [19],[20] | 4.00% | [9],[12] | |
REEC Harlem Holdings Company LLC | UNITED STATES | NY | Terra Property Trust | Preferred Equity Investment | Land | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 12.70% | 14.30% | |||
Loans Receivable, Description of Variable Rate Basis | LIBOR | LIBOR | |||
Exit Fee | 0.00% | 0.00% | |||
Acquisition Date | Mar. 9, 2018 | Mar. 9, 2018 | |||
Maturity Date | Mar. 9, 2023 | Mar. 9, 2023 | |||
Principal Amount | $ 14,759,047 | $ 18,444,375 | |||
Amortized Cost | 14,759,047 | 18,444,375 | |||
Fair Value | [4] | 13,573,859 | 18,280,168 | ||
REEC Harlem Holdings Company LLC | UNITED STATES | NY | Terra Property Trust | Preferred Equity Investment | Land | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 10,384,002 | [3] | $ 18,024,246 | [5] | |
% of Members Capital | 4.40% | [2] | 7.30% | [6] | |
REEC Harlem Holdings Company LLC | UNITED STATES | NY | Terra Property Trust | Preferred Equity Investment | Land | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | 12.50% | 12.50% | |||
RS JZ Driggs, LLC | UNITED STATES | NY | Terra Property Trust | Preferred Equity Investment | Multifamily | Non-controlled | |||||
Schedule of Investments | |||||
Mortgage Loans On Real Estate Coupon Rate | 12.30% | [19],[20],[21] | 12.30% | [9],[12] | |
Interest Rate | 12.30% | [19],[20],[21] | 12.30% | [9],[12] | |
Exit Fee | 1.00% | [19],[20],[21] | 1.00% | [9],[12] | |
Acquisition Date | May 1, 2018 | [19],[20],[21] | May 1, 2018 | [9],[12] | |
Maturity Date | Aug. 1, 2020 | [19],[20],[21] | May 1, 2020 | [9],[12] | |
Principal Amount | $ 8,200,000 | [19],[20],[21] | $ 8,200,000 | [9],[12] | |
Amortized Cost | 8,276,271 | [19],[20],[21] | 8,286,629 | [9],[12] | |
Fair Value | [4] | 8,282,546 | [19],[20],[21] | 8,277,336 | [9],[12] |
RS JZ Driggs, LLC | UNITED STATES | NY | Terra Property Trust | Preferred Equity Investment | Multifamily | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 6,336,148 | [3],[19],[20],[21] | $ 8,161,453 | [5],[9],[12] | |
% of Members Capital | 2.70% | [2],[19],[20],[21] | 3.30% | [6],[9],[12] | |
14th & Alice Street Owner LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Multifamily | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | [21] | 9.00% | [20] | 9.00% | |
Loans Receivable, Description of Variable Rate Basis | [21] | LIBOR | [20] | LIBOR | |
Exit Fee | [21] | 0.50% | [20] | 0.50% | |
Acquisition Date | [21] | Mar. 5, 2019 | [20] | Mar. 5, 2019 | |
Maturity Date | [21] | Mar. 5, 2022 | [20] | Mar. 5, 2022 | |
Principal Amount | [21] | $ 24,510,905 | [20] | $ 12,932,034 | |
Amortized Cost | [21] | 24,689,333 | [20] | 12,957,731 | |
Fair Value | [4],[21] | 24,407,964 | [20] | 12,983,863 | |
14th & Alice Street Owner LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Multifamily | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | [21] | $ 18,672,092 | [3],[20] | $ 12,802,089 | [5] |
% of Members Capital | [21] | 7.80% | [2],[20] | 5.20% | [6] |
14th & Alice Street Owner LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Multifamily | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | [21] | 5.75% | [20] | 5.75% | |
LIBOR Floor | [21] | 3.25% | [20] | 3.25% | |
1389 Peachtree St LP; 1401 Peachtree St LP; 1409 Peachtree St LP | UNITED STATES | GA | Terra Property Trust | First Mortgage | Office Building | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 4.70% | [22] | 6.30% | [23] | |
Loans Receivable, Description of Variable Rate Basis | LIBOR | [22] | LIBOR | [23] | |
Exit Fee | 0.50% | [22] | 0.50% | [23] | |
Acquisition Date | Feb. 22, 2019 | [22] | Feb. 22, 2019 | [23] | |
Maturity Date | Feb. 10, 2022 | [22] | Feb. 10, 2022 | [23] | |
Principal Amount | $ 45,671,947 | [22] | $ 38,464,429 | [23] | |
Amortized Cost | 45,853,379 | [22] | 38,510,650 | [23] | |
Fair Value | [4] | 45,821,197 | [22] | 38,655,000 | [23] |
1389 Peachtree St LP; 1401 Peachtree St LP; 1409 Peachtree St LP | UNITED STATES | GA | Terra Property Trust | First Mortgage | Office Building | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 35,053,216 | [3],[22] | $ 38,113,830 | [5],[23] | |
% of Members Capital | 14.70% | [2],[22] | 15.40% | [6],[23] | |
1389 Peachtree St LP; 1401 Peachtree St LP; 1409 Peachtree St LP | UNITED STATES | GA | Terra Property Trust | First Mortgage | Office Building | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | 4.50% | [22] | 4.50% | [23] | |
330 Tryon DE LLC | UNITED STATES | NORTH CAROLINA | Terra Property Trust | First Mortgage | Office Building | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 6.40% | [22] | 6.40% | [23] | |
Loans Receivable, Description of Variable Rate Basis | LIBOR | [22] | LIBOR | [23] | |
Exit Fee | 0.50% | [22] | 0.50% | [23] | |
Acquisition Date | Feb. 7, 2019 | [22] | Feb. 7, 2019 | [23] | |
Maturity Date | Mar. 1, 2022 | [22] | Mar. 1, 2022 | [23] | |
Principal Amount | $ 22,800,000 | [22] | $ 22,800,000 | [23] | |
Amortized Cost | 22,896,169 | [22] | 22,891,149 | [23] | |
Fair Value | [4] | 22,898,866 | [22] | 22,906,207 | [23] |
330 Tryon DE LLC | UNITED STATES | NORTH CAROLINA | Terra Property Trust | First Mortgage | Office Building | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 17,517,632 | [3],[22] | $ 22,585,520 | [5],[23] | |
% of Members Capital | 7.40% | [2],[22] | 9.00% | [6],[23] | |
330 Tryon DE LLC | UNITED STATES | NORTH CAROLINA | Terra Property Trust | First Mortgage | Office Building | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | 3.85% | [22] | 3.85% | [23] | |
LIBOR Floor | 2.51% | [22] | 2.51% | [23] | |
AGRE DCP Palm Springs, LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Hotel | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 6.60% | [22] | 6.60% | [23] | |
Loans Receivable, Description of Variable Rate Basis | LIBOR | [22] | LIBOR | [23] | |
Exit Fee | 0.50% | [22] | 0.50% | [23] | |
Acquisition Date | Dec. 12, 2019 | [22] | Dec. 12, 2019 | [23] | |
Maturity Date | Jan. 1, 2023 | [22] | Jan. 1, 2023 | [23] | |
Principal Amount | $ 32,975,680 | [22] | $ 30,184,357 | [23] | |
Amortized Cost | 33,030,797 | [22] | 30,174,455 | [23] | |
Fair Value | [4] | 33,084,469 | [22] | 30,326,076 | [23] |
AGRE DCP Palm Springs, LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Hotel | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 25,309,619 | [3],[22] | $ 29,901,511 | [5],[23] | |
% of Members Capital | 10.60% | [2],[22] | 12.10% | [6],[23] | |
AGRE DCP Palm Springs, LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Hotel | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | 4.75% | [22] | 4.75% | [23] | |
LIBOR Floor | 1.80% | [22] | 1.80% | [23] | |
MSC Fields Peachtree Retreat LLC | UNITED STATES | GA | Terra Property Trust | First Mortgage | Multifamily | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 5.90% | [22] | 5.90% | [23] | |
Loans Receivable, Description of Variable Rate Basis | LIBOR | [22] | LIBOR | [23] | |
Exit Fee | 0.50% | [22] | 0.50% | [23] | |
Acquisition Date | Mar. 15, 2019 | [22] | Mar. 15, 2019 | [23] | |
Maturity Date | Apr. 1, 2022 | [22] | Apr. 1, 2022 | [23] | |
Principal Amount | $ 23,308,335 | [22] | $ 23,308,335 | [23] | |
Amortized Cost | 23,442,092 | [22] | 23,446,793 | [23] | |
Fair Value | [4] | 23,108,448 | [22] | 23,418,996 | [23] |
MSC Fields Peachtree Retreat LLC | UNITED STATES | GA | Terra Property Trust | First Mortgage | Multifamily | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 17,677,963 | [3],[22] | $ 23,091,130 | [5],[23] | |
% of Members Capital | 7.40% | [2],[22] | 9.30% | [6],[23] | |
MSC Fields Peachtree Retreat LLC | UNITED STATES | GA | Terra Property Trust | First Mortgage | Multifamily | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | 3.85% | [22] | 3.85% | [23] | |
LIBOR Floor | 2.00% | [22] | 2.00% | [23] | |
Patrick Henry Recovery Acquisition, LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Office Building | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 4.50% | [22] | 4.70% | ||
Loans Receivable, Description of Variable Rate Basis | LIBOR | [22] | LIBOR | ||
Loans Receivable, Basis Spread on Variable Rate | 2.95% | [22] | 2.95% | ||
LIBOR Floor | 1.50% | [22] | 1.50% | ||
Exit Fee | 0.30% | [22] | 0.30% | ||
Acquisition Date | Nov. 25, 2019 | [22] | Nov. 25, 2019 | ||
Maturity Date | Dec. 1, 2023 | [22] | Dec. 1, 2023 | ||
Principal Amount | $ 18,000,000 | [22] | $ 18,000,000 | ||
Amortized Cost | 18,038,578 | [22] | 18,037,329 | ||
Fair Value | [4] | 17,845,715 | [22] | 18,042,390 | |
Patrick Henry Recovery Acquisition, LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Office Building | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 13,651,972 | [3],[22] | $ 17,789,797 | [5] | |
% of Members Capital | 5.70% | [2],[22] | 7.20% | [6] | |
TSG-Parcel 1, LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Land | Non-controlled | |||||
Schedule of Investments | |||||
Mortgage Loans On Real Estate Coupon Rate | [19],[20] | 15.00% | |||
Interest Rate | 15.00% | [19],[20] | 12.00% | [9],[11],[12] | |
Loans Receivable, Description of Variable Rate Basis | [9],[11],[12] | LIBOR | |||
Exit Fee | 1.00% | [19],[20] | 1.00% | [9],[11],[12] | |
Acquisition Date | Jul. 10, 2015 | [19],[20] | Jul. 10, 2015 | [9],[11],[12] | |
Maturity Date | Dec. 31, 2020 | [19],[20] | Mar. 31, 2020 | [9],[11],[12] | |
Principal Amount | $ 18,000,000 | [19],[20] | $ 18,000,000 | [9],[11],[12] | |
Amortized Cost | 18,180,000 | [19],[20] | 18,180,000 | [9],[11],[12] | |
Fair Value | [4] | 18,177,747 | [19],[20] | 18,174,634 | [9],[11],[12] |
TSG-Parcel 1, LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Land | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 13,905,976 | [3],[19],[20] | $ 17,920,189 | [5],[9],[11],[12] | |
% of Members Capital | 5.80% | [2],[19],[20] | 7.30% | [6],[9],[11],[12] | |
TSG-Parcel 1, LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Land | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | [9],[11],[12] | 10.00% | |||
LIBOR Floor | [9],[11],[12] | 2.00% | |||
University Park Berkeley LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Student Housing | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 4.50% | ||||
Loans Receivable, Description of Variable Rate Basis | LIBOR | ||||
Loans Receivable, Basis Spread on Variable Rate | 2.95% | ||||
LIBOR Floor | 1.50% | ||||
Exit Fee | 0.30% | ||||
Acquisition Date | Feb. 27, 2020 | ||||
Maturity Date | Mar. 1, 2023 | ||||
Principal Amount | $ 23,250,000 | ||||
Amortized Cost | 23,272,652 | ||||
Fair Value | [4] | 23,304,937 | |||
University Park Berkeley LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Student Housing | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | [3] | $ 17,828,277 | |||
% of Members Capital | [2] | 7.50% | |||
REEC 286 Lenox LLC | UNITED STATES | NY | Terra Property Trust | First Mortgage | Office Building | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 4.70% | ||||
Loans Receivable, Description of Variable Rate Basis | LIBOR | ||||
Exit Fee | 0.00% | ||||
Acquisition Date | Aug. 2, 2019 | ||||
Maturity Date | Sep. 22, 2019 | ||||
Principal Amount | $ 4,740,000 | ||||
Amortized Cost | 4,740,000 | ||||
Fair Value | [4] | 4,740,000 | |||
REEC 286 Lenox LLC | UNITED STATES | NY | Terra Property Trust | First Mortgage | Office Building | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | [5] | $ 4,673,640 | |||
% of Members Capital | [6] | 1.90% | |||
REEC 286 Lenox LLC | UNITED STATES | NY | Terra Property Trust | First Mortgage | Office Building | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | 2.95% | ||||
Windy Hill Pv Five Cm LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Office Building | Non-controlled | |||||
Schedule of Investments | |||||
Interest Rate | 8.10% | [24] | 8.10% | ||
Loans Receivable, Description of Variable Rate Basis | LIBOR | [24] | LIBOR | ||
Exit Fee | 0.50% | [24] | 0.50% | ||
Acquisition Date | Sep. 20, 2019 | [24] | Sep. 20, 2019 | ||
Maturity Date | Sep. 20, 2022 | [24] | Sep. 20, 2022 | ||
Principal Amount | $ 13,797,643 | [24] | $ 9,701,468 | ||
Amortized Cost | 13,498,117 | [24] | 9,265,568 | ||
Fair Value | [4] | 13,825,988 | [24] | 9,741,954 | |
Windy Hill Pv Five Cm LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Office Building | Non-controlled | Pro Rata | |||||
Schedule of Investments | |||||
Fair Value | $ 10,576,881 | [3],[24] | $ 9,605,567 | [5] | |
% of Members Capital | 4.40% | [2],[24] | 3.90% | [6] | |
Windy Hill Pv Five Cm LLC | UNITED STATES | CA | Terra Property Trust | First Mortgage | Office Building | LIBOR | Non-controlled | |||||
Schedule of Investments | |||||
Loans Receivable, Basis Spread on Variable Rate | 6.00% | [24] | 6.00% | ||
LIBOR Floor | 2.05% | [24] | 2.05% | ||
[1] | From time to time, Terra Property Trust might invest in short-term debt and equity securities. These securities are comprised of shares of preferred stock and bonds. | ||||
[2] | Percentage is based on the Company’s pro rata share of the fair value or net investment value over the Company’s total members’ capital of $238.7 million at June 30, 2020. | ||||
[3] | Amount represents the Company’s portion, or 76.5%, of the fair value or net investment value. | ||||
[4] | Because there is no readily available market for these loans, these loans were valued using significant unobservable inputs under Level 3 of the fair value hierarchy and were approved in good faith by Terra REIT Advisors, LLC (“Terra REIT Advisors”), Terra Property Trust’s manager, pursuant to Terra Property Trust’s valuation policy. | ||||
[5] | Amount represents the Company’s portion, or 98.6%, of the fair value or net investment value. | ||||
[6] | Percentage is based on the Company’s pro rata share of the fair value or net investment value over the Company’s total members’ capital of $247.1 million at December 31, 2019. | ||||
[7] | Percentage is based on Terra Property Trust’s net exposure on the property (real estate owned less encumbrance). | ||||
[8] | Terra Property Trust sold a portion of its interest in this loan through a participation agreement to TPT2, an affiliated fund managed by Terra REIT Advisors. | ||||
[9] | Terra Property Trust sold a portion of its interest in this loan through a participation agreement to Terra Income Fund 6, Inc., an affiliated fund advised by Terra Income Advisors, an affiliate of our sponsor and Terra Property Trust’s manager. | ||||
[10] | Terra Property Trust sold a portion of its interests in these loans via participation agreements to Terra Income Fund International, an affiliated fund advised by Terra REIT Advisors. | ||||
[11] | Terra Property Trust sold a portion of its interests in these loans via participation agreements to Terra Secured Income Fund 5 International, an affiliated fund advised by Terra REIT Advisors. | ||||
[12] | The loan participations from Terra Property Trust do not qualify for sale accounting and therefore, the gross amount of these loans remain in the consolidated statements of financial condition. | ||||
[13] | Terra Property Trust acquired this property through foreclosure of a $54.0 million first mortgage. Real estate owned, net amount includes building and building improvements, tenant improvements and lease intangible assets and liabilities, net of accumulated depreciation and amortization. | ||||
[14] | Terra Property Trust acquired the collateral for this loan via deed in lieu of foreclosure. On June 30, 2019, Terra Property Trust recorded an impairment charge of $1.6 million on the land in order to reduce the carrying value of the land to its estimated fair value, which is the estimated selling price less the cost of sale. | ||||
[15] | In June 2020, Terra Property Trust amended the credit facility agreement to provide for interest at a fixed rate of 16.00% and to capitalize any unpaid interest to principal. (9) In August 2020, Terra Property Trust extended the maturity of this loan to February 1, 2021. | ||||
[16] | Terra Property Trust entered into a forbearance agreement with the borrower to allow for more time to make the interest payment. | ||||
[17] | On June 27, 2018, Terra Property Trust entered into a participation agreement with Terra Income Fund 6, Inc. to purchase a 25% interest, or $4.3 million, in a mezzanine loan. As of June 30, 2020, the commitment was fully funded. | ||||
[18] | On June 27, 2018, Terra Property Trust entered into a participation agreement with Terra Income Fund 6, Inc. to purchase a 25% interest, or $4.3 million, in a mezzanine loan. As of December 31, 2019, the unfunded commitment was $1.1 million. | ||||
[19] | Terra Property Trust sold a portion of its interest in this loan through a participation agreement to Terra Income Fund 6, Inc., an affiliated fund advised by Terra Income Advisors, LLC (“Terra Income Advisors”), an affiliate of our sponsor and Terra Property Trust’s manager. | ||||
[20] | The loan participations from Terra Property Trust do not qualify for sale accounting and therefore, the gross amount of these loans remain in the consolidated balance sheets. | ||||
[21] | Terra Property Trust sold a portion of its interest in this loan via a participation agreement to a third-party. | ||||
[22] | These loans were used as collateral for $95.4 million of borrowings under a repurchase agreement. | ||||
[23] | These loans were used as collateral for $81.1 million of borrowings under a repurchase agreement. | ||||
[24] | In March 2020, Terra Property Trust restructured the loan into A-note and B-note. In connection with the restructuring, Terra Property Trust sold the A-note to a third-party. However, the sale did not qualify for sale accounting and therefore, the gross amount of the loan remains in the consolidated balance sheets. |
Consolidated Schedules of Inv_2
Consolidated Schedules of Investments Consolidated schedule of investment (Parenthetical) - USD ($) | 1 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 27, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Debt Securities | $ 3,300,000 | |||||||
Members' Capital | 238,704,964 | $ 254,985,487 | $ 247,066,913 | |||||
Non-managing members | 238,704,964 | $ 247,066,913 | ||||||
First Mortgage | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | $ 95,400,000 | |||||||
Terra Property Trust | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Percent Of Common Stock Indrect Owned | 76.50% | |||||||
Percent of Common Stock Direct Owned | 98.60% | |||||||
Fair Value | $ 0 | $ 247,263,245 | ||||||
% of Members Capital | 100.10% | |||||||
Terra Property Trust | Controlled | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Percent Of Common Stock Indrect Owned | 76.50% | |||||||
Percent of Common Stock Direct Owned | 98.60% | |||||||
Fair Value | $ 247,263,245 | |||||||
% of Members Capital | 100.00% | 100.10% | ||||||
Terra Property Trust | Terra JV | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 87.40% | |||||||
Terra Property Trust | UNITED STATES | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Fair Value | [1] | $ 412,675,853 | $ 379,160,415 | |||||
Terra Property Trust | UNITED STATES | Non-controlled | Mezzanine Loan | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Fair Value | 36,672,950 | [1] | 42,673,996 | |||||
Terra Property Trust | UNITED STATES | Non-controlled | First Mortgage | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Fair Value | [1] | 222,475,331 | 178,989,120 | |||||
Collateralized Agreements | 81,100,000 | |||||||
Terra Property Trust | UNITED STATES | CA | Hotel | LD Milipitas Mezz, LLC | Non-controlled | Mezzanine Loan | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Fair Value | $ 4,297,730 | [1],[2] | $ 3,204,261 | [3] | ||||
Interest Rate | 13.00% | [2] | 13.00% | [3] | ||||
Terra Property Trust | UNITED STATES | CA | Hotel | LD Milipitas Mezz, LLC | Participation Interests | Non-controlled | Mezzanine Loan | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Ownership Interest | 25.00% | |||||||
Total Commitment | $ 4,300,000 | |||||||
Terra Property Trust | UNITED STATES | CA | Office Building | Non-controlled | First Mortgage | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Real Estate Acquired Through Foreclosure | $ 54,000,000 | |||||||
Terra Property Trust | UNITED STATES | CA | Office Building | Non-controlled | Real Estate | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Financing Receivable, before Allowance for Credit Loss | 54,000,000 | |||||||
Terra Property Trust | UNITED STATES | CA | Office Building | Participation Interests | Non-controlled | Mezzanine Loan | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Ownership Interest | 25.00% | |||||||
Total Commitment | $ 4,300,000 | |||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 1,100,000 | |||||||
Terra Property Trust | UNITED STATES | CA | Office Building | Windy Hill Pv Five Cm LLC | Non-controlled | First Mortgage | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Fair Value | [1] | $ 13,825,988 | [4] | $ 9,741,954 | ||||
Interest Rate | 8.10% | [4] | 8.10% | |||||
Terra Property Trust | UNITED STATES | PA | Land | Non-controlled | Real Estate | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Impairment charge | $ 1,600,000 | $ 1,600,000 | ||||||
Terra Property Trust | UNITED STATES | TEXAS | Hotel | Austin H. I. Owner LLC | Non-controlled | Mezzanine Loan | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Fair Value | $ 3,645,676 | [1] | $ 3,534,499 | [5],[6] | ||||
Interest Rate | 12.50% | 12.50% | [5],[6] | |||||
Terra Fund Five | Terra JV | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 87.60% | |||||||
Terra fund Seven | Terra JV | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 12.40% | |||||||
[1] | Because there is no readily available market for these loans, these loans were valued using significant unobservable inputs under Level 3 of the fair value hierarchy and were approved in good faith by Terra REIT Advisors, LLC (“Terra REIT Advisors”), Terra Property Trust’s manager, pursuant to Terra Property Trust’s valuation policy. | |||||||
[2] | On June 27, 2018, Terra Property Trust entered into a participation agreement with Terra Income Fund 6, Inc. to purchase a 25% interest, or $4.3 million, in a mezzanine loan. As of June 30, 2020, the commitment was fully funded. | |||||||
[3] | On June 27, 2018, Terra Property Trust entered into a participation agreement with Terra Income Fund 6, Inc. to purchase a 25% interest, or $4.3 million, in a mezzanine loan. As of December 31, 2019, the unfunded commitment was $1.1 million. | |||||||
[4] | In March 2020, Terra Property Trust restructured the loan into A-note and B-note. In connection with the restructuring, Terra Property Trust sold the A-note to a third-party. However, the sale did not qualify for sale accounting and therefore, the gross amount of the loan remains in the consolidated balance sheets. | |||||||
[5] | Terra Property Trust sold a portion of its interests in these loans via participation agreements to Terra Secured Income Fund 5 International, an affiliated fund advised by Terra REIT Advisors. | |||||||
[6] | The loan participations from Terra Property Trust do not qualify for sale accounting and therefore, the gross amount of these loans remain in the consolidated statements of financial condition. |
Business
Business | 6 Months Ended |
Jun. 30, 2020 | |
Limited Liability Companies LLCs [Abstract] | |
Business | Note 1. Business Terra Secured Income Fund 5, LLC (the “Company”), is a real estate credit focused company that originates, structures, funds and manages high yielding commercial real estate investments, including mezzanine loans, first mortgage loans, subordinated mortgage loans and preferred equity investments throughout the United States. The Company’s loans finance the acquisition, construction, development or redevelopment of quality commercial real estate in the United States. The Company focuses on the origination of middle market loans in the approximately $10 million to $50 million range, to finance properties in primary and secondary markets. The Company believes loans of this size are subject to less competition, offer higher risk adjusted returns than larger loans with similar risk metrics and facilitate portfolio diversification. The Company was formed as a Delaware limited liability company on April 24, 2013 and commenced operations on August 8, 2013. The Company makes substantially all of its investments and conducts substantially all of its real estate lending business through Terra Property Trust, which has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with its taxable year ended December 31, 2016. The Company’s objectives are to (i) preserve its members’ capital contributions, (ii) realize income from its investments and (iii) make monthly distributions to its members from cash generated from investments. There can be no assurances that the Company will be successful in meeting its objectives. In December 2015, the members approved the merger of Terra Secured Income Fund, LLC (“Terra Fund 1”), Terra Secured Income Fund 2, LLC (“Terra Fund 2”), Terra Secured Income Fund 3, LLC (“Terra Fund 3”) and Terra Secured Income Fund 4, LLC (“Terra Fund 4”) with and into subsidiaries of the Company (individually, each a “Terra Fund” and collectively, the “Terra Funds”) through a series of separate mergers effective January 1, 2016 (collectively, the “Merger”). Following the Merger, the Company contributed the consolidated portfolio of net assets of the five Terra Funds to Terra Property Trust, a newly-formed and wholly-owned subsidiary of the Company that elected to be taxed as a REIT, in exchange for the shares of common stock of Terra Property Trust. Upon completion of the Merger, the Company became the parent company of Terra Funds 1 through 4 and the direct and indirect sole common stockholder of, and began conducting substantially all of its real estate lending business through, Terra Property Trust. On March 2, 2020, Terra Fund 1, Terra Fund 2 and Terra Fund 3 merged with and into Terra Fund 4, with Terra Fund 4 continuing as the surviving company (the “Terra Fund Merger”), and the Company consolidated its holdings of shares of common stock of Terra Property Trust in Terra Fund 4. Subsequent to the Terra Fund Merger, the legal name of Terra Fund 4 was changed to Terra JV. On March 2, 2020, Terra Property Trust engaged in a series of transactions pursuant to which Terra Property Trust issued an aggregate of 4,574,470.35 shares of its common stock in exchange for the settlement of an aggregate of $49.8 million of participation interests in loans that Terra Property Trust owned, cash of $25.5 million and other working capital. As of June 30, 2020, Terra JV held 87.4% of the issued and outstanding shares of Terra Property Trust’s common stock with the remainder held by TIF3 REIT, and the Company and Terra Fund 7 owned an 87.6% and 12.4% percentage interest, respectively, in Terra JV ( Note 4 ). The Company does not consolidate Terra JV because the Company and Terra Fund 7 share joint approval rights with respect to certain major decisions that are taken by Terra JV and Terra Property Trust ( Note 4 ). The Company’s investment activities are externally managed by Terra Fund Advisors, LLC (“Terra Fund Advisors”). The Company does not currently have any employees and does not expect to have any employees. Services necessary for the Company’s business are provided by individuals who are employees of the Manager or its affiliates or by individuals who were contracted by the Company or by the Manager or its affiliates to work on behalf of the Company pursuant to the terms of the operating agreement, as amended. The Company’s amended and restated operating agreement provides that the Company’s existence will continue until December 31, 2023, unless sooner terminated. However, the Company expects that prior to such date it will consummate a liquidity transaction, which may include an orderly liquidation of its assets or an alternative liquidity event such as a sale of the Company or an initial public offering and listing of Terra Property Trust’s shares of common stock on a national securities exchange. The Manager would pursue an alternative liquidity event only if it believes such a transaction would be in the best interests of the Company’s members. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The interim financial statements have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP”). The financial statements as of December 31, 2019 and for the three and six months ended June 30, 2019 and the period from January 1, 2020 to March 1, 2020 included all of the Company’s accounts and those of its consolidated subsidiaries. All intercompany balances and transactions had been eliminated. As discussed in Note 1 , on March 2, 2020, the Company’s subsidiaries completed the Terra Fund Merger. As a result of the Terra Fund Merger, the Company no longer consolidates the subsidiaries. The financial statements as of June 30, 2020 and for the period from March 2, 2020 to June 30, 2020 and the three months ended June 30, 2020 includes all of the Company’s accounts only. The accompanying interim financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Articles 6 or 10 of Regulation S-X. The Company is an investment company, as defined under U.S. GAAP, and applies accounting and reporting guidance in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services - Investment Companies . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. During the first half of 2020, there was a global outbreak of a novel coronavirus (“COVID-19”), which has spread to over 200 countries and territories, including the United States, and has spread to every state in the United States. The World Health Organization has designated COVID-19 as a pandemic, and numerous countries, including the United States, have declared national emergencies with respect to COVID-19. The global impact of the outbreak has been rapidly evolving, and as cases of COVID-19 have continued to be identified in additional countries, many countries have reacted by instituting quarantines and restrictions on travel, closing financial markets and/or restricting trading and operations of non-essential offices and retail centers. Such actions are creating disruption in global supply chains, and adversely impacting many industries. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions. The Company believes the estimates and assumptions underlying its financial statements are reasonable and supportable based on the information available as of June 30, 2020, however uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of June 30, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. Actual results may ultimately differ from those estimates. Equity Investment in Terra JV or Terra Property Trust Equity investment in Terra JV or Terra Property Trust represents the Company’s equity interest in Terra JV or Terra Property Trust as applicable, which was initially recorded at cost. Subsequent to the asset contribution, the equity investment is reported, at each reporting date, at fair value on the statements of financial condition. Change in fair value is reported in net change in unrealized appreciation or depreciation on investment on the statements of operations. Revenue Recognition Dividend Income: Dividend income associated with the Company’s ownership of Terra JV or Terra Property Trust is recognized on the record date as declared by Terra JV or Terra Property Trust. Any excess of distributions over Terra JV or Terra Property Trust’s cumulative net income are recorded as return of capital. Other Operating Income: All other income is recognized when earned. Cash and Cash Equivalents The Company considers all highly liquid investments, with original maturities of ninety days or less when purchased, as cash equivalents. Cash and cash equivalents are exposed to concentrations of credit risk. The Company maintains all of its cash at financial institutions which, at times, may exceed the amount insured by the Federal Deposit Insurance Corporation. Income Taxes No provision for U.S. federal and state income taxes has been made in the accompanying financial statements, as individual members are responsible for their proportionate share of the Company’s taxable income. The Company, however, may be liable for New York City Unincorporated Business Tax (the “NYC UBT”) and similar taxes of various other municipalities. New York City imposes the NYC UBT at a statutory rate of 4% on net income generated from ordinary business activities carried on in New York City. For the three and six months ended June 30, 2020 and 2019, none of the Company’s income was subject to the NYC UBT. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statements and tax basis assets and liabilities using enacted tax rates in effect for the year in which differences are expected to reverse. Such deferred tax assets and liabilities were not material. The Company did not have any uncertain tax positions that met the recognition or measurement criteria of ASC 740-10-25, Income Taxes , nor did the Company have any unrecognized tax benefits as of the periods presented herein. The Company recognizes interest and penalties, if any, related to unrecognized tax liabilities as income tax expense in its statements of operations. For the three and six months ended June 30, 2020 and 2019, the Company did not incur any interest or penalties. Although the Company files federal and state tax returns, its primary tax jurisdiction is federal. The Company’s 2015-2019 federal tax years remain subject to examination by the Internal Revenue Service. Recent Accounting Pronouncement |
Investment and Fair Value
Investment and Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Investments And Fair Value Measurements [Text Block] | Note 3. Investment and Fair Value Equity Investment in Terra JV or Terra Property Trust The Company invested substantially all of its equity capital in the purchase of shares of common stock of Terra Property Trust. On March 2, 2020, Terra Property Trust engaged in a series of transactions pursuant to which Terra Property Trust issued an aggregate of 4,574,470.35 shares of its common stock in exchange for the settlement of an aggregate of $49.8 million of participation interests in loans that Terra Property Trust owned, cash of $25.5 million and other working capital. As of June 30, 2020, Terra JV held 87.4% of the issued and outstanding shares of Terra Property Trust’s common stock with the remainder held by TIF3 REIT, and the Company and Terra Fund 7 owned an 87.6% and 12.4% percentage interest, respectively, in Terra JV, and Terra JV became the Company’s only investment ( Note 4 ). The following tables present a summary of the Company’s investment at June 30, 2020 and December 31, 2019: June 30, 2020 Investment Cost Fair Value % of Members’ Capital 87.6% interest in Terra JV, LLC $ 238,509,445 $ 238,509,869 99.9 % December 31, 2019 Investment Cost Fair Value % of Members’ Capital 14,912,990 common shares of Terra Property Trust, Inc. $ 243,924,852 $ 247,263,245 100.1 % For the three months ended June 30, 2020 and 2019, the Company received approximately $3.4 million and $7.6 million of distributions from Terra JV and/or Terra Property Trust as applicable, respectively, of which $2.7 million and $7.6 million were returns of capital, respectively. For the six months ended June 30, 2020 and 2019, the Company received approximately $11.2 million and $15.2 million of distributions from Terra JV and/or Terra Property Trust as applicable, respectively, of which $9.3 million and $11.3 million were returns of capital, respectively. As of June 30, 2020 and December 31, 2019, the Company indirectly beneficially owned 76.5% ( Note 4 ) and directly owned 98.6% of the outstanding shares of common stock of Terra Property Trust, respectively. The following tables present the summarized financial information of Terra Property Trust: June 30, 2020 December 31, 2019 Carrying value of loans held for investment $ 414,448,282 $ 378,612,768 Real estate owned, net 75,694,708 77,596,475 Cash, cash equivalent and restricted cash 102,945,300 50,549,700 Other assets 21,143,973 20,584,135 Total assets 614,232,263 527,343,078 Mortgage loan payable, repurchase agreement payable, revolving credit facility (252,571,125) (227,548,397) Accounts payable, accrued expenses and other liabilities (41,304,905) (40,826,139) Lease intangible liabilities (11,127,360) (11,424,809) Total liabilities (305,003,390) (279,799,345) Stockholder’s equity $ 309,228,873 $ 247,543,733 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues $ 12,064,629 $ 13,332,694 $ 24,142,200 $ 26,070,628 Expenses (10,562,322) (13,486,179) (21,750,371) (22,301,238) Net loss on extinguishment of obligations under participation agreements — — (319,453) — Realized gains on marketable securities 1,076,213 — 1,085,107 — Unrealized gains on marketable securities 67,522 — 67,522 — Net income (loss) $ 2,646,042 $ (153,485) $ 3,225,005 $ 3,769,390 Fair Value Measurements The Company adopted the provisions of ASC 820, Fair Value Measurement (“ASC 820”), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 established a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment, the characteristics specific to the investment, and the state of the marketplace (including the existence and transparency of transactions between market participants). Investments with readily available, actively quoted prices or for which fair value can be measured from actively quoted prices in an orderly market will generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Investments measured and reported at fair value are classified and disclosed into one of the following categories based on the inputs as follows: Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities that the Company has the ability to access. Level 2 — Pricing inputs are other than quoted prices in active markets, including, but not limited to, quoted prices for similar assets and liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs. Level 3 — Significant unobservable inputs are based on the best information available in the circumstances, to the extent observable inputs are not available, including the Company’s own assumptions used in determining the fair value of investments. Fair value for these investments are determined using valuation methodologies that consider a range of factors, including but not limited to the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public exchanges for comparable securities, current and projected operating performance, and financing transactions subsequent to the acquisition of the investment. The inputs into the determination of fair value require significant management judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Assets and Liabilities Reported at Fair Value The following table summarizes the Company’s equity investment at fair value on a recurring basis as of June 30, 2020 and December 31, 2019: June 30, 2020 Fair Value Measurements Level 1 Level 2 Level 3 Total Investment: Equity investment in Terra JV $ — $ — $ 238,509,869 $ 238,509,869 December 31, 2019 Fair Value Measurements Level 1 Level 2 Level 3 Total Investment: Equity investment in Terra Property Trust $ — $ — $ 247,263,245 $ 247,263,245 Changes in Level 3 investment for the six months ended June 30, 2020 and 2019 were as follows: Equity Investment in Terra JV Equity Investment in Terra Property Trust Period from March 2, 2020 to June 30, 2020 Period from January 1, 2020 to March 1, 2020 Six Months Ended June 30, 2019 Beginning balance $ — $ 247,263,245 $ 263,092,586 Transfer of ownership interest in Terra Property Trust to 244,006,890 (244,006,890) — Return of capital (5,497,444) (3,783,607) (11,260,039) Net change in unrealized appreciation on investment 423 527,252 3,198,259 Ending balance $ 238,509,869 $ — $ 255,030,806 Net change in unrealized appreciation on investment for the $ 423 $ 527,252 $ 3,198,259 Transfers between levels, if any, are recognized at the beginning of the period in which transfers occur. For the six months ended June 30, 2020 and 2019, there were no transfers. The Company estimated that its other financial assets and liabilities had fair values that approximated their carrying values at June 30, 2020 and December 31, 2019 due to their short-term nature. Valuation Process for Fair Value Measurement Market quotations are not readily available for the Company’s investment in Terra Property Trust or Terra JV, which is included in Level 3 of the fair value hierarchy. The fair value of the Company’s sole investment takes into consideration the fair value of Terra Property Trust’s assets and liabilities which are valued utilizing a yield approach, i.e. a discounted cash flow methodology. In following this methodology, loans are evaluated individually, and management takes into account, in determining the risk-adjusted discount rate for each of Terra Property Trust’s loans, relevant factors, including available current market data on applicable yields of comparable debt/preferred equity instruments; market credit spreads and yield curves; the investment’s yield; covenants of the investment, including prepayment provisions; the portfolio company’s ability to make payments, its net operating income, debt-service coverage ratio; construction progress reports and construction budget analysis; the nature, quality, and realizable value of any collateral (and loan-to-value ratio); and the forces that influence the local markets in which the asset (the collateral) is purchased and sold, such as capitalization rates, occupancy rates, rental rates, replacement costs and the anticipated duration of each real estate-related loan. The Manager designates a valuation committee to oversee the entire valuation process of Terra Property Trust’s Level 3 investments. The valuation committee is comprised of members of the Manager’s senior management, deal and portfolio management teams, who meet on a quarterly basis, or more frequently as needed, to review Terra Property Trust investments being valued as well as the inputs used in the proprietary valuation model. Valuations determined by the valuation committee are supported by pertinent data and, in addition to a proprietary valuation model, are based on market data, third-party valuation data and discount rates or other methods the valuation committee deems to be appropriate. The following tables summarize the valuation techniques and significant unobservable inputs used by the Company to value the Level 3 investments as of June 30, 2020 and December 31, 2019. The tables are not intended to be all-inclusive, but instead identify the significant unobservable inputs relevant to the determination of fair values. Fair Value Primary Valuation Technique Unobservable Inputs June 30, 2020 Asset Category Minimum Maximum Weighted Average Assets: Equity investment in Terra JV $ 238,509,869 Discounted cash flow (1) Discount rate (1) 2.51 % 19.05 % 16.82 % Fair Value Primary Valuation Technique Unobservable Inputs December 31, 2019 Asset Category Minimum Maximum Weighted Average Assets: Equity investment in Terra Property Trust $ 247,263,245 Discounted cash flow (1) Discount rate (1) 4.11 % 14.95 % 12.36 % _______________ (1) Discounted cash flows and discount rates applied to Terra Property Trust’s assets and liabilities. Risks and Uncertainties The Company’s investment in Terra Property Trust or Terra JV is highly illiquid and there is no assurance that the Company will achieve its investment objectives, including targeted returns. Terra Property Trust’s loans are highly illiquid. Due to the illiquidity of the loans, valuation of the loans may be difficult, as there generally will be no established markets for these loans. As the Company’s investment is carried at fair value with fair value changes recognized in the statements of operations, any changes in fair value would directly affect the Company’s members’ capital. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 4. Related Party Transactions Operating Agreement The Company has an operating agreement, as amended, with Terra Fund Advisors. The operating agreement, as amended, is scheduled to terminate on December 31, 2023 unless the Company is dissolved earlier. Starting January 1, 2016, the Company conducts all of its real estate lending business through Terra Property Trust. As such, Terra Property Trust is responsible for management compensation paid and operating expenses reimbursed to its manager pursuant to a management agreement with the manager. Dividend Income As discussed in Note 3 , for the three months ended June 30, 2020 and 2019, the Company received approximately $3.4 million and $7.6 million of distributions from Terra JV and/or Terra Property Trust as applicable, respectively, of which $2.7 million and $7.6 million were returns of capital, respectively. For the six months ended June 30, 2020 and 2019, the Company received approximately $11.2 million and $15.2 million of distributions from Terra JV and/or Terra Property Trust as applicable, respectively, of which $9.3 million and $11.3 million were returns of capital, respectively. TPT2 Merger On February 28, 2020, Terra Property Trust entered into certain Agreement and Plan of Merger (the “Merger Agreement”), by and among Terra Property Trust, Terra Property Trust 2, Inc. (“TPT2”) and Terra Fund 7, the sole stockholder of TPT2, pursuant to which TPT2 merged with and into Terra Property Trust, with Terra Property Trust continuing as the surviving corporation (the “TPT2 Merger”), effective March 1, 2020. In connection with the TPT2 Merger, each share of common stock, par value $0.01 per share, of TPT2 issued and outstanding immediately prior to the effective time of the TPT2 Merger was converted into the right to receive from Terra Property Trust a number of shares of common stock, par value $0.01 per share, of Terra Property Trust equal to an exchange ratio, which was 1.2031. The exchange ratio was based on the relative fair value of Terra Property Trust and TPT2 as of December 31, 2019 as adjusted to reflect changes in net working capital of each of Terra Property Trust and TPT2 during the period from January 1, 2020 through March 1, 2020, the effective time for the TPT2 Merger. For purposes of determining the respective fair values of Terra Property Trust and TPT2, the value of the loans (or participation interests therein) held by each of Terra Property Trust and TPT2 was the value of such loans (or participation interests) as set forth in the audited financial statements of Terra Property Trust as of and for the year ended December 31, 2019. As a result, Terra Fund 7 received 2,116,785.76 shares of common stock of Terra Property Trust as consideration in the TPT2 Merger and subsequently contributed these shares to Terra JV. The shares of Terra Property Trust common stock issued in connection with the TPT2 Merger were issued in a private placement in reliance on Section 4(a)(2) under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and the rules and regulations promulgated thereunder Issuance of Common Stock to TIF3 REIT In addition, on March 2, 2020, Terra Property Trust entered into two separate contribution agreements, one by and among Terra Property Trust, TIF3 REIT and Terra Income Fund International, and another by and among Terra Property Trust, TIF3 REIT and Terra Secured Income Fund 5 International, pursuant to which Terra Property Trust issued 2,457,684.59 shares of common stock of Terra Property Trust to TIF3 REIT in exchange for the settlement of $32.1 million of participation interests in loans also held by Terra Property Trust, $8.6 million in cash and other working capital (“Issuance of Common Stock to TIF3 REIT”).The shares of common stock were issued in a private placement in reliance on Section 4(a)(2) under the Securities Act and the rules and regulations promulgated thereunder. On April 29, 2020, Terra Property Trust repurchased, at a purchase price $17.02 per share, 212,691 shares of common stock that Terra Property Trust had previously sold to TIF3 REIT on September 30, 2019. Terra JV, LLC Prior to the completion of the TPT2 Merger and the Issuance of Common Stock to TIF3 REIT transactions described above, the Company owned approximately 98.6% of the issued and outstanding shares of Terra Property Trust’s common stock indirectly through its wholly owned subsidiary, Terra JV, of which the Company was the sole managing member, and the remaining issued and outstanding shares of Terra Property Trust’s common stock were owned by TIF3 REIT. As described above, Terra Property Trust acquired TPT2 in the TPT2 Merger and, in connection with such transaction, Terra Fund 7 contributed the shares of Terra Property Trust’s common stock received as consideration in the TPT2 Merger to Terra JV and became a co-managing member of Terra JV pursuant to the amended and restated operating agreement of Terra JV, dated March 2, 2020 (the “JV Agreement”). The JV Agreement and related stockholders agreement between Terra JV and Terra Property Trust, dated March 2, 2020, provide for the joint approval of the Company and Terra Fund 7 with respect to certain major decisions that are taken by Terra JV and Terra Property Trust. On March 2, 2020, Terra Property Trust, the Company, Terra JV and Terra REIT Advisors also entered into the Amended and Restated Voting Agreement (the “Voting Agreement”), pursuant to which the Company assigned its rights and obligations under the Voting Agreement to Terra JV. Consistent with the original voting agreement dated February 8, 2018, for the period that Terra REIT Advisors remains the external manager of Terra Property Trust, Terra REIT Advisors will have the right to nominate two individuals to serve as directors of Terra Property Trust, until Terra JV no longer holds at least 10% of the outstanding shares of Terra Property Trust’s common stock, Terra JV will have the right to nominate one individual to serve as a director of Terra Property Trust. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 5. Commitments and Contingencies The Company enters into contracts that contain a variety of indemnification provisions. The Company’s maximum exposure under these arrangements is unknown; however, the Company has not had prior claims or losses pursuant to these contracts. The Manager has reviewed the Company’s existing contracts and expects the risk of loss to the Company to be remote. The Company is not currently subject to any material legal proceedings and, to the Company’s knowledge, no material legal proceedings are threatened against the Company. From time to time, the Company may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of the Company’s rights under contracts with its portfolio companies. While the outcome of any legal proceedings cannot be predicted with certainty, the Company does not expect that any such proceedings will have a material adverse effect upon its financial condition or results of operations. |
Members' Capital
Members' Capital | 6 Months Ended |
Jun. 30, 2020 | |
Limited Liability Company (LLC) Members' Equity [Abstract] | |
Members' Capital | Note 6. Members’ Capital As of both June 30, 2020 and December 31, 2019, the Company had 6,637.7 units outstanding. The net asset value per unit was $35,962 and $37,222 as of June 30, 2020 and December 31, 2019, respectively. Capital Contributions As of January 31, 2015, the offering period ended, and the Company stopped accepting capital contributions. In connection with the Merger, the Company offered existing members of the Terra Funds the opportunity to invest in the Company through purchase of additional units (the “Rights Offering”). The Rights Offering was completed on May 17, 2016. Capital Distributions At the discretion of the Manager, the Company may make distributions from net cash flow from operations, net disposition proceeds, or other cash available for distribution. Distributions are made to holders of Continuing Income Units (regular units of limited liability company interest in the Company) in proportion to their unit holdings until they receive a return of their initial Deemed Capital Contribution, as defined in the operating agreement, plus a preferred return ranging from 8.5% to 9.0% depending on the historical preferred return applicable to their Terra Fund units, after which time distributions are made 15% to the Manager which the Company refers to as the carried interest distribution, and 85% to the holders of Continuing Income Units. The preferred return applicable to the Continuing Income Units sold in the offering concurrent with the Merger is 8.5%. For the three months ended June 30, 2020 and 2019, the Company made total distributions to non-manager members of $3.0 million and $7.5 million, respectively. For the six months ended June 30, 2020 and 2019, the Company made total distributions to non-manager members of $10.5 million and $14.9 million, respectively. For the three and six months ended June 30, 2020 and 2019, the Company did not make any carried interest distributions to the Manager. Capital Redemptions At the discretion of the Manager, a reserve of 5% of cash from operations may be established in order to repurchase units from non-managing members. The Manager is under no obligation to redeem non-managing members’ units. As of June 30, 2020 and December 31, 2019, no such reserve was established. For the three and six months ended June 30, 2020 and 2019, the Company did not redeem any membership units. Allocation of Income (Loss) Profits and losses are allocated to the members in proportion to the units held in a given calendar year. Member Units Each membership interest through the original offering was offered for a price of $50,000 per unit. The membership interests in Terra Funds 1 through 4 were exchanged for units of the Company at a price of $43,410 per unit, which was the exchange value per unit of the Company on December 31, 2015, and the units in the Rights Offering were offered at a price of $47,000 per unit. For the six months ended June 30, 2020 and 2019, the Company did not issue or redeem any membership units. |
Financial Highlights
Financial Highlights | 6 Months Ended |
Jun. 30, 2020 | |
Investment Company, Financial Highlights [Abstract] | |
Financial Highlights | Note 7. Financial Highlights The financial highlights represent the per unit operating performance, return and ratios for the non-managing members’ class, taken as a whole, for the six months ended June 30, 2020 and 2019. These financial highlights consist of the operating performance, the internal rate of return (“IRR”) since inception of the Company, and the expense and net investment income ratios which are annualized except for the on-recurring expenses. The IRR, net of all fees and carried interest (if any), is computed based on actual dates of the cash inflows (capital contributions), outflows (capital distributions), and the ending capital at the end of the respective period (residual value) of the non-managing members’ capital account. The following summarizes the Company’s financial highlights for the six months ended June 30, 2020 and 2019: Six Months Ended June 30, 2020 2019 Per unit operating performance: Net asset value per unit, beginning of period $ 37,222 $ 39,630 Increase in members’ capital from operations (1) : Net investment income 242 549 Net change in unrealized appreciation on investment 80 481 Total increase in members’ capital from operations 322 1,030 Distributions to member (2) : Capital distributions (1,582) (2,249) Net decrease in members’ capital resulting from distributions (1,582) (2,249) Net asset value per unit, end of period $ 35,962 $ 38,411 Ratios to average net assets: Expenses 0.28 % 0.21 % Net investment income 1.33 % 2.76 % IRR, beginning of period 6.40 % 6.56 % IRR, end of period 6.07 % 6.46 % _______________ (1) The per unit data was derived by using the weighted average units outstanding during the applicable periods, which were 6,638 units and 6,639 units for the six months ended June 30, 2020 and 2019, respectively. (2) The per unit data for distributions reflects the actual amount of distributions paid per unit during the periods. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 8. Subsequent Events Management has evaluated subsequent events through the date the financial statements were available to be issued. Management has determined that there are no material events that would require adjustment to, or disclosure in, the Company’s financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The interim financial statements have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP”). The financial statements as of December 31, 2019 and for the three and six months ended June 30, 2019 and the period from January 1, 2020 to March 1, 2020 included all of the Company’s accounts and those of its consolidated subsidiaries. All intercompany balances and transactions had been eliminated. As discussed in Note 1 , on March 2, 2020, the Company’s subsidiaries completed the Terra Fund Merger. As a result of the Terra Fund Merger, the Company no longer consolidates the subsidiaries. The financial statements as of June 30, 2020 and for the period from March 2, 2020 to June 30, 2020 and the three months ended June 30, 2020 includes all of the Company’s accounts only. The accompanying interim financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Articles 6 or 10 of Regulation S-X. The Company is an investment company, as defined under U.S. GAAP, and applies accounting and reporting guidance in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services - Investment Companies |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. During the first half of 2020, there was a global outbreak of a novel coronavirus (“COVID-19”), which has spread to over 200 countries and territories, including the United States, and has spread to every state in the United States. The World Health Organization has designated COVID-19 as a pandemic, and numerous countries, including the United States, have declared national emergencies with respect to COVID-19. The global impact of the outbreak has been rapidly evolving, and as cases of COVID-19 have continued to be identified in additional countries, many countries have reacted by instituting quarantines and restrictions on travel, closing financial markets and/or restricting trading and operations of non-essential offices and retail centers. Such actions are creating disruption in global supply chains, and adversely impacting many industries. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions. The Company believes the estimates and assumptions underlying its financial statements are reasonable and supportable based on the information available as of June 30, 2020, however uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of June 30, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. Actual results may ultimately differ from those estimates. |
Equity Investment | Equity Investment in Terra JV or Terra Property Trust Equity investment in Terra JV or Terra Property Trust represents the Company’s equity interest in Terra JV or Terra Property Trust as applicable, which was initially recorded at cost. Subsequent to the asset contribution, the equity investment is reported, at each reporting date, at fair value on the statements of financial condition. Change in fair value is reported in net change in unrealized appreciation or depreciation on investment on the statements of operations. |
Revenue Recognition | Revenue Recognition Dividend Income: Dividend income associated with the Company’s ownership of Terra JV or Terra Property Trust is recognized on the record date as declared by Terra JV or Terra Property Trust. Any excess of distributions over Terra JV or Terra Property Trust’s cumulative net income are recorded as return of capital. Other Operating Income: All other income is recognized when earned. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments, with original maturities of ninety days or less when purchased, as cash equivalents. |
Income Taxes | Income Taxes No provision for U.S. federal and state income taxes has been made in the accompanying financial statements, as individual members are responsible for their proportionate share of the Company’s taxable income. The Company, however, may be liable for New York City Unincorporated Business Tax (the “NYC UBT”) and similar taxes of various other municipalities. New York City imposes the NYC UBT at a statutory rate of 4% on net income generated from ordinary business activities carried on in New York City. For the three and six months ended June 30, 2020 and 2019, none of the Company’s income was subject to the NYC UBT. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statements and tax basis assets and liabilities using enacted tax rates in effect for the year in which differences are expected to reverse. Such deferred tax assets and liabilities were not material. The Company did not have any uncertain tax positions that met the recognition or measurement criteria of ASC 740-10-25, Income Taxes |
Fair Value Measurement | The Company adopted the provisions of ASC 820, Fair Value Measurement (“ASC 820”), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 established a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment, the characteristics specific to the investment, and the state of the marketplace (including the existence and transparency of transactions between market participants). Investments with readily available, actively quoted prices or for which fair value can be measured from actively quoted prices in an orderly market will generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Investments measured and reported at fair value are classified and disclosed into one of the following categories based on the inputs as follows: Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities that the Company has the ability to access. Level 2 — Pricing inputs are other than quoted prices in active markets, including, but not limited to, quoted prices for similar assets and liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs. Level 3 — Significant unobservable inputs are based on the best information available in the circumstances, to the extent observable inputs are not available, including the Company’s own assumptions used in determining the fair value of investments. Fair value for these investments are determined using valuation methodologies that consider a range of factors, including but not limited to the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public exchanges for comparable securities, current and projected operating performance, and financing transactions subsequent to the acquisition of the investment. The inputs into the determination of fair value require significant management judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. |
New Accounting Pronouncements | Recent Accounting Pronouncement |
Investment and Fair Value (Tabl
Investment and Fair Value (Tables) - Terra Property Trust | 6 Months Ended |
Jun. 30, 2020 | |
Investments | |
Summary Investment Holdings | The following tables present a summary of the Company’s investment at June 30, 2020 and December 31, 2019: June 30, 2020 Investment Cost Fair Value % of Members’ Capital 87.6% interest in Terra JV, LLC $ 238,509,445 $ 238,509,869 99.9 % December 31, 2019 Investment Cost Fair Value % of Members’ Capital 14,912,990 common shares of Terra Property Trust, Inc. $ 243,924,852 $ 247,263,245 100.1 % |
Summary of financial information | The following tables present the summarized financial information of Terra Property Trust: June 30, 2020 December 31, 2019 Carrying value of loans held for investment $ 414,448,282 $ 378,612,768 Real estate owned, net 75,694,708 77,596,475 Cash, cash equivalent and restricted cash 102,945,300 50,549,700 Other assets 21,143,973 20,584,135 Total assets 614,232,263 527,343,078 Mortgage loan payable, repurchase agreement payable, revolving credit facility (252,571,125) (227,548,397) Accounts payable, accrued expenses and other liabilities (41,304,905) (40,826,139) Lease intangible liabilities (11,127,360) (11,424,809) Total liabilities (305,003,390) (279,799,345) Stockholder’s equity $ 309,228,873 $ 247,543,733 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues $ 12,064,629 $ 13,332,694 $ 24,142,200 $ 26,070,628 Expenses (10,562,322) (13,486,179) (21,750,371) (22,301,238) Net loss on extinguishment of obligations under participation agreements — — (319,453) — Realized gains on marketable securities 1,076,213 — 1,085,107 — Unrealized gains on marketable securities 67,522 — 67,522 — Net income (loss) $ 2,646,042 $ (153,485) $ 3,225,005 $ 3,769,390 |
Summary of Company's equity investment at fair value on a recurring basis | The following table summarizes the Company’s equity investment at fair value on a recurring basis as of June 30, 2020 and December 31, 2019: June 30, 2020 Fair Value Measurements Level 1 Level 2 Level 3 Total Investment: Equity investment in Terra JV $ — $ — $ 238,509,869 $ 238,509,869 December 31, 2019 Fair Value Measurements Level 1 Level 2 Level 3 Total Investment: Equity investment in Terra Property Trust $ — $ — $ 247,263,245 $ 247,263,245 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in Level 3 investment for the six months ended June 30, 2020 and 2019 were as follows: Equity Investment in Terra JV Equity Investment in Terra Property Trust Period from March 2, 2020 to June 30, 2020 Period from January 1, 2020 to March 1, 2020 Six Months Ended June 30, 2019 Beginning balance $ — $ 247,263,245 $ 263,092,586 Transfer of ownership interest in Terra Property Trust to 244,006,890 (244,006,890) — Return of capital (5,497,444) (3,783,607) (11,260,039) Net change in unrealized appreciation on investment 423 527,252 3,198,259 Ending balance $ 238,509,869 $ — $ 255,030,806 Net change in unrealized appreciation on investment for the $ 423 $ 527,252 $ 3,198,259 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following tables summarize the valuation techniques and significant unobservable inputs used by the Company to value the Level 3 investments as of June 30, 2020 and December 31, 2019. The tables are not intended to be all-inclusive, but instead identify the significant unobservable inputs relevant to the determination of fair values. Fair Value Primary Valuation Technique Unobservable Inputs June 30, 2020 Asset Category Minimum Maximum Weighted Average Assets: Equity investment in Terra JV $ 238,509,869 Discounted cash flow (1) Discount rate (1) 2.51 % 19.05 % 16.82 % Fair Value Primary Valuation Technique Unobservable Inputs December 31, 2019 Asset Category Minimum Maximum Weighted Average Assets: Equity investment in Terra Property Trust $ 247,263,245 Discounted cash flow (1) Discount rate (1) 4.11 % 14.95 % 12.36 % _______________ (1) Discounted cash flows and discount rates applied to Terra Property Trust’s assets and liabilities. |
Financial Highlights (Tables)
Financial Highlights (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investment Company, Financial Highlights [Abstract] | |
Financial Highlights | The following summarizes the Company’s financial highlights for the six months ended June 30, 2020 and 2019: Six Months Ended June 30, 2020 2019 Per unit operating performance: Net asset value per unit, beginning of period $ 37,222 $ 39,630 Increase in members’ capital from operations (1) : Net investment income 242 549 Net change in unrealized appreciation on investment 80 481 Total increase in members’ capital from operations 322 1,030 Distributions to member (2) : Capital distributions (1,582) (2,249) Net decrease in members’ capital resulting from distributions (1,582) (2,249) Net asset value per unit, end of period $ 35,962 $ 38,411 Ratios to average net assets: Expenses 0.28 % 0.21 % Net investment income 1.33 % 2.76 % IRR, beginning of period 6.40 % 6.56 % IRR, end of period 6.07 % 6.46 % _______________ (1) The per unit data was derived by using the weighted average units outstanding during the applicable periods, which were 6,638 units and 6,639 units for the six months ended June 30, 2020 and 2019, respectively. (2) The per unit data for distributions reflects the actual amount of distributions paid per unit during the periods. |
Business (Details)
Business (Details) | 6 Months Ended | |
Jun. 30, 2020USD ($)Number_of_Funds | Mar. 02, 2020USD ($)shares | |
Subsidiary of Limited Liability Company or Limited Partnership | ||
Operations Commenced Date | Aug. 8, 2013 | |
Formation State | Delaware | |
Formation Date | Apr. 24, 2013 | |
LLC Exit Date | Dec. 31, 2023 | |
Terra JV | Terra Fund Five | ||
Subsidiary of Limited Liability Company or Limited Partnership | ||
Equity Method Investment, Ownership Percentage | 87.60% | |
Terra JV | Terra fund Seven | ||
Subsidiary of Limited Liability Company or Limited Partnership | ||
Equity Method Investment, Ownership Percentage | 12.40% | |
Minimum | ||
Subsidiary of Limited Liability Company or Limited Partnership | ||
Investment Owned, Balance, Principal Amount | $ 10,000,000 | |
Maximum | ||
Subsidiary of Limited Liability Company or Limited Partnership | ||
Investment Owned, Balance, Principal Amount | $ 50,000,000 | |
Terra Property Trust | ||
Subsidiary of Limited Liability Company or Limited Partnership | ||
Common Stock, Shares, Issued | shares | 4,574,470.35 | |
Common Stock, Value, Issued | $ 49,800,000 | |
Cash | $ 25,500,000 | |
Number Of Investment Funds | Number_of_Funds | 5 | |
Percent Of Common Stock Indrect Owned | 76.50% | |
Terra Property Trust | Terra JV | ||
Subsidiary of Limited Liability Company or Limited Partnership | ||
Equity Method Investment, Ownership Percentage | 87.40% | |
Terra Property Trust | Controlled | ||
Subsidiary of Limited Liability Company or Limited Partnership | ||
Percent Of Common Stock Indrect Owned | 76.50% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
UBT at statutory rate | 4.00% |
Investment and Fair Value (Narr
Investment and Fair Value (Narratives) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 02, 2020 | Dec. 31, 2019 | |
Fair Value, Separate Account Investment [Line Items] | ||||||
Return of capital on investment | $ 2,700,000 | $ 7,600,000 | $ 9,281,051 | $ 11,260,039 | ||
Proceeds from Equity Method Investment, Distribution | 3,400,000 | $ 7,600,000 | $ 11,200,000 | $ 15,200,000 | ||
Terra JV | Terra fund Seven | ||||||
Fair Value, Separate Account Investment [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 12.40% | |||||
Terra JV | Terra Fund Five | ||||||
Fair Value, Separate Account Investment [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 87.60% | |||||
Terra Property Trust | ||||||
Fair Value, Separate Account Investment [Line Items] | ||||||
Below Market Lease, Net | $ 11,127,360 | $ 11,127,360 | $ 11,424,809 | |||
Common Stock, Shares, Issued | 4,574,470.35 | |||||
Common Stock, Value, Issued | $ 49,800,000 | |||||
Cash | $ 25,500,000 | |||||
Percent of Common Stock Direct Owned | 98.60% | |||||
Percent Of Common Stock Indrect Owned | 76.50% | 76.50% | ||||
Terra Property Trust | Terra JV | ||||||
Fair Value, Separate Account Investment [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 87.40% |
Investment and Fair Value (Summ
Investment and Fair Value (Summary of the Investments) (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Terra Property Trust | ||
Investments | ||
Amortized Cost | $ 0 | $ 243,924,852 |
Fair Value | 0 | $ 247,263,245 |
% of Members Capital | 100.10% | |
Terra JV | ||
Investments | ||
Amortized Cost | 238,509,445 | $ 0 |
Fair Value | $ 238,509,869 | $ 0 |
% of Members Capital | 99.90% |
Investment and Fair Value (Su_2
Investment and Fair Value (Summary of Financial Information of Terra Property Trust) (Details) - Terra Property Trust - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Separate Account Investment [Line Items] | ||
Carrying value of investments | $ 414,448,282 | $ 378,612,768 |
Real estate owned, net | 75,694,708 | 77,596,475 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 102,945,300 | 50,549,700 |
Other assets | 21,143,973 | 20,584,135 |
Total assets | 614,232,263 | 527,343,078 |
Mortgage loan payable and obligations under participation agreements | (252,571,125) | (227,548,397) |
Accounts payable, accrued expenses and other liabilities | (41,304,905) | (40,826,139) |
Lease intangible liabilities | (11,127,360) | (11,424,809) |
Total liabilities | (305,003,390) | (279,799,345) |
Stockholder’s equity | $ 309,228,873 | $ 247,543,733 |
Investment and Fair Value (Su_3
Investment and Fair Value (Summary of Financial Information 2) (Details) - Terra Property Trust - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments | ||||
Revenues | $ 12,064,629 | $ 13,332,694 | $ 24,142,200 | $ 26,070,628 |
Expenses | (10,562,322) | (13,486,179) | (21,750,371) | (22,301,238) |
Net loss on extinguishment of obligations under participation agreements | 0 | 0 | (319,453) | 0 |
Unrealized gains on marketable securities | 1,076,213 | 0 | 1,085,107 | 0 |
Unrealized gains on marketable securities | 67,522 | 0 | 67,522 | 0 |
Net income (loss) | $ 2,646,042 | $ (153,485) | $ 3,225,005 | $ 3,769,390 |
Investment and Fair Value (Equi
Investment and Fair Value (Equity Investment at Fair Value on a recurring basis) (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Terra Property Trust | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 247,263,245 |
Terra Property Trust | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Terra Property Trust | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Terra Property Trust | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 247,263,245 | |
Terra JV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 238,509,869 | $ 0 |
Terra JV | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Terra JV | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Terra JV | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 238,509,869 |
Investments and Fair Value (Cha
Investments and Fair Value (Changes in Level 3) (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
Mar. 01, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Transfer of ownership interest in Terra Property Trust to Terra JV | $ 244,006,890 | $ 0 | ||||
Net change in unrealized appreciation on investment | $ 2,813,973 | $ 1,609,008 | 527,675 | 3,198,259 | ||
Terra JV | Level 3 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Beginning balance | $ 0 | |||||
Transfer of ownership interest in Terra Property Trust to Terra JV | 244,006,890 | |||||
Return of capital | (5,497,444) | |||||
Net change in unrealized appreciation on investment | 423 | |||||
Ending balance | $ 0 | $ 238,509,869 | 238,509,869 | 238,509,869 | ||
Net change in unrealized appreciation on investment for the period relating to those Level 3 assets that were still held by the Company | 423 | |||||
Terra Property Trust | Level 3 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Beginning balance | 247,263,245 | $ 0 | $ 247,263,245 | 263,092,586 | ||
Transfer of ownership interest in Terra Property Trust to Terra JV | (244,006,890) | 0 | ||||
Return of capital | (3,783,607) | (11,260,039) | ||||
Net change in unrealized appreciation on investment | 527,252 | 3,198,259 | ||||
Ending balance | 0 | $ 255,030,806 | 255,030,806 | |||
Net change in unrealized appreciation on investment for the period relating to those Level 3 assets that were still held by the Company | $ 527,252 | $ 3,198,259 |
Investment and Fair Value (Valu
Investment and Fair Value (Valuation techniques and significant unobservable inputs) (Details) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Terra Property Trust | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 0 | $ 247,263,245 |
Terra JV | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 238,509,869 | 0 |
Level 3 | Terra Property Trust | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 247,263,245 | |
Level 3 | Terra Property Trust | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 247,263,245 | |
Level 3 | Terra Property Trust | Discount Rate | Discounted Cash Flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.0411 | |
Level 3 | Terra Property Trust | Discount Rate | Discounted Cash Flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.1495 | |
Level 3 | Terra Property Trust | Discount Rate | Discounted Cash Flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.1236 | |
Level 3 | Terra JV | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 238,509,869 | |
Level 3 | Terra JV | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 238,509,869 | |
Level 3 | Terra JV | Discount Rate | Discounted Cash Flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.0251 | |
Level 3 | Terra JV | Discount Rate | Discounted Cash Flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.1905 | |
Level 3 | Terra JV | Discount Rate | Discounted Cash Flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.1682 |
Related Party Transactions - Op
Related Party Transactions - Operating agreement and dividend income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Investments | |||||
LLC Exit Date | Dec. 31, 2023 | ||||
Proceeds from Equity Method Investment, Distribution | $ 3,400,000 | $ 7,600,000 | $ 11,200,000 | $ 15,200,000 | |
Return of capital on investment | $ 2,700,000 | $ 7,600,000 | $ 9,281,051 | $ 11,260,039 | |
Terra Property Trust | |||||
Investments | |||||
Percent of Common Stock Direct Owned | 98.60% |
Related Party Transactions - TP
Related Party Transactions - TPT2 Merger (Details) - $ / shares | Feb. 28, 2020 | Dec. 31, 2019 |
Terra Property Trust | ||
Investments | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |
Terra fund Seven | ||
Investments | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |
Terra fund Seven | TPT2 Merger | Terra Property Trust | ||
Investments | ||
Business Acquisition, Share Price | $ 1.2031 | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,116,785.76 |
Related Party Transactions - Is
Related Party Transactions - Issuance of Common Stocks to TIF3 REIT (Details) - USD ($) | Apr. 29, 2020 | Mar. 02, 2020 |
Terra International Fund 3 | ||
Investments | ||
Share Price | $ 17.02 | |
Stock Repurchased During Period, Shares | 212,691 | |
Terra Property Trust | ||
Investments | ||
Common Stock, Value, Issued | $ 49,800,000 | |
Cash | 25,500,000 | |
Terra Property Trust | Terra International Fund 3 | ||
Investments | ||
Common Stock, Value, Issued | $ 32,100,000 | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,457,684.59 | |
Cash Acquired in Excess of Payments to Acquire Business | $ 8,600,000 |
Related Party Transactions - Te
Related Party Transactions - Terra JV, LLC (Details) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Terra JV | Terra fund Seven | ||
Investments | ||
Equity Method Investment, Ownership Percentage | 12.40% | |
Terra JV | Terra Fund Five | ||
Investments | ||
Equity Method Investment, Ownership Percentage | 87.60% | |
Terra Property Trust | ||
Investments | ||
Percent of Common Stock Direct Owned | 98.60% | |
Percent Of Common Stock Indrect Owned | 76.50% | |
Terra Property Trust | Controlled | ||
Investments | ||
Percent of Common Stock Direct Owned | 98.60% | |
Percent Of Common Stock Indrect Owned | 76.50% | |
Terra Property Trust | Terra JV | ||
Investments | ||
Equity Method Investment, Ownership Percentage | 87.40% |
Members' Capital - Narratives (
Members' Capital - Narratives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Members Capital | ||||||
Common Unit, Outstanding | 6,637.7 | 6,637.7 | 6,637.7 | |||
Net asset value per unit | $ 35,962 | $ 38,411 | $ 35,962 | $ 38,411 | $ 37,222 | $ 39,630 |
Capital distributions | $ 3,030,711 | $ 7,468,095 | $ 10,497,982 | $ 14,936,189 | ||
Non-managing | ||||||
Members Capital | ||||||
Capital distributions | $ 3,030,711 | $ 7,468,095 | $ 10,497,982 | $ 14,936,189 | ||
Continuing Income Units Holder | ||||||
Members Capital | ||||||
Percent of distribution made to members depends on the historical preferred return applicale to Terra Fund units | 8.50% | |||||
Distribution Percent | 85.00% | |||||
Shares Issued, Price Per Share | $ 43,410 | $ 43,410 | ||||
Continuing Income Units Holder | Minimum | ||||||
Members Capital | ||||||
Percent of distribution made to members depends on the historical preferred return applicale to Terra Fund units | 8.50% | |||||
Continuing Income Units Holder | Maximum | ||||||
Members Capital | ||||||
Percent of distribution made to members depends on the historical preferred return applicale to Terra Fund units | 9.00% | |||||
Manager | ||||||
Members Capital | ||||||
Distribution Percent | 15.00% | |||||
Non-managing | ||||||
Members Capital | ||||||
Percent Of Cash Repurchase Capital Units | 5.00% | 5.00% | ||||
Non-managing | Continuing Income Units Holder | ||||||
Members Capital | ||||||
Distribution Made to Limited Partner, Unit Distribution | 0 | 0 | ||||
Managing | Termination Units Holder | ||||||
Members Capital | ||||||
Member units redemption | 0 | 0 | ||||
Rights Offering | ||||||
Members Capital | ||||||
Shares Issued, Price Per Share | $ 47,000 | $ 47,000 | ||||
Initial Offering | ||||||
Members Capital | ||||||
Shares Issued, Price Per Share | $ 50,000 | $ 50,000 |
Financial Highlights (Details)
Financial Highlights (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investment Company, Financial Highlights [Roll Forward] | ||||
Net asset value per unit | $ 37,222 | $ 39,630 | ||
Increase in members’ capital from operations (1): | ||||
Net investment income | $ 78 | $ (16) | 242 | 549 |
Net change in unrealized appreciation on investment | 80 | 481 | ||
Investment Company, Investment Income (Loss) from Operations, Per Share | 502 | 227 | 322 | 1,030 |
Distributions to member (2): | ||||
Capital distributions | (1,582) | (2,249) | ||
Net decrease in members’ capital resulting from distributions | (1,582) | (2,249) | ||
Capital share transactions: | ||||
Net asset value per unit | $ 35,962 | $ 38,411 | $ 35,962 | $ 38,411 |
Ratios to average net assets: | ||||
Expenses | 0.28% | 0.21% | ||
Net investment income | 1.33% | 2.76% | ||
Investment company internal rate of return | 6.40% | 6.56% | ||
Investment company internal rate of return | 6.07% | 6.46% | 6.07% | 6.46% |
Non-managing Member Class | ||||
Ratios to average net assets: | ||||
Weighted Average Membership Units Outstanding | 6,638 | 6,639 |