The marketing process evidenced ample liquidity in the multifamily sector. There was substantial interest in the property and it is currently under contract with a hard deposit. We anticipate the sale will close midyear. On the REO side, the Washington DC office property, which we took ownership of during the fourth quarter is now under contract at our net asset value and we anticipate finalizing the sale also midyear. Turning to our watch list update. During the first quarter, we added two investments for a total of $87 million. We added the $57 million Santa Clara, California multifamily development loan to the watch list due to uncertainty associated with the upcoming maturity. This is the remaining collateral associated with the multifamily development loan, which was paid down by $51 million in June of 2022, concurrent with the release of a parcel from the collateral.
Current market conditions have impacted the borrowers go forward business plan. We are in active dialog with the borrower regarding alternative options for the remaining parcel. In addition, we also downgraded a Miami, Florida office loan. The collateral consisted of two buildings and the borrower was pursuing a conversion to multifamily on one of the buildings. The borrower owns the adjacent parcel and the plan was to consolidate the parcels in order to effectuate this redevelopment. We are approaching a final maturity and it’s unclear whether or not the borrower will be able to refinance the combined properties. The lack of certainty on both of these investments has compelled us to move the investments to the watch list from risk rating of 3 to 4.
As it relates to the loan portfolio, as of March 31, 2024, excluding cash and net assets from the balance sheet, the loan portfolio is comprised of 85 investments with an aggregate carrying value of $2.8 billion and the net carrying value of $877 million or 79% of the total investment portfolio. Our weighted average risk ranking remained flat quarter-over-quarter at 3.2. The average loan size is $33 million. First mortgage loans constitute 97% of our loan portfolio, of which 100% are floating rate and all of which have interest rate caps. The multifamily portion of our portfolio remains the largest segment with 51 loans representing 54% of the loan portfolio or $1.5 billion of aggregate carrying value. Office comprises 30% of the loan portfolio, consisting of $847 million of aggregate carrying value across 25 loans with an average loan balance of $34 million.
The remainder of our loan portfolio is comprised of 8% hospitality with mixed use and industrial collateral making up the remainder. With that, I will turn the call over to Frank Saracino, our Chief Financial Officer, to elaborate on the first quarter results. Frank?
Frank Saracino: Thank you, Andy. And good morning, everyone. Before discussing our first quarter results, I want to mention that our first quarter 2024 supplemental financial report is available on the Investor Relations section of our Web site. As Mike mentioned, for the first quarter, we generated adjusted DE of $29.7 million or $0.23 per share. First quarter DE was $22.5 million or $0.17 per share. DE includes a specific reserve on the Denver, Colorado multifamily loan of approximately $7.1 million. Additionally, we reported total company GAAP net loss of $57.1 million or $0.45 per share, which reflects the sequential increase in our CECL reserves. Quarter-over-quarter, total company GAAP net book value decreased to $9.10 from $9.83 per share.
Undepreciated book value also decreased to $10.67 from $11.35 per share. The change is mainly driven by an increase in our CECL reserves and partially offset by adjusted DE in excess of dividends declared. I would like to quickly bridge the first quarter adjusted distributable earnings of $0.23 versus the $0.28 recorded in the fourth quarter. The change is driven by loan repayments, non-accrual loans and performance at our operating real estate portfolio. Looking at reserves. Our specific CECL reserves totaled $7.1 million and is related to the Denver, Colorado multifamily loans. As Andy mentioned, this loan was downgraded to a 5 in 4Q and the underlying property is currently under contract with a hard deposit. During 1Q, no loans were downgraded to a 5.
Our general CECL provision stands at $143.7 million or 488 basis points on total loan commitments, an increase to $67 million from the prior quarter. The increase in the general CECL was primarily driven by economic conditions as well as specific inputs on certain loans. Looking at our watch list loans, our one risk rank 5 loans represents 1% of the total loan portfolio carrying value. 11 loans equating to 18% of the total portfolio carrying value are risk rank 4. This concludes our prepared remarks. And with that, let’s open it up for questions. Operator?
Operator: [Operator Instructions] Our first questions come from the line of Stephen Laws with Raymond James.
Stephen Laws: I may have been typing faster and should have been listening, but wanted to touch base back on the cash flow comment around the real estate. I think you said $0.15 is kind of the number that those three assets contribute. It looks like adjusted distributable earnings, if I look say, trailing 12 months clearly has over earned by more than $0.15 on the dividend. So can you talk a little bit or make sure I’m clear as far as the coverage comments that it’s just a little bit less coverage on the dividend, or maybe if you could speak to that?
Mike Mazzei: Some of the coverage deterioration that we had came from various — that nickel so it came from various sources that we can go through there, kind of places where that came from. So those are all small numbers adding up to a nickel. But as we look forward, we really are — there are a lot of questions we see on these calls about it’s not just about DE, it’s about cash flow, and our company is paying out capital to sustain a dividend. We want to be very clear going backward telling you what that cash flow coverage was and that cash flow coverage drop is similar to the drop, the same drivers, if you will, as the drop in DE coverage, dividend coverage. When we look out ahead, we’re seeing that there are certain events that while they may not affect actual DE, i.
e. if you’re getting cash trapped at an entity level with your lender, you’re still getting that distributable earnings in your income, but we do recognize that they can affect cash. And so that $0.15 was something that we want to make sure, putting out there and telegraphing everyone knows about these assets, everyone knows about the Norway asset. We passed the dividend test last year but we see this test is going to be more difficult. So we just want to make sure that we’re ahead of that and that we know everyone is also focused on cash flow coverage, and we want to make sure we earmark that. And as I said in the call, we have other things that we’re working on that will offset that. It will be a timing issue with the equity investments you have drop dead date certains that these events, maturities, covenant tests are going to happen.
