10.	Mortgages Payable	Mortgages payable consisted of the following:	June 30, 2011		December 31, 2010

		Note payable in monthly installments of $42,000 plus interest at 150 basis points over LIBOR (1.69% and 1.76% at June 30, 2011 and December 31, 2010, respectively). A final balloon payment in the amount of $22,318,478 is due on July 14, 2013 unless extended for a two year period at the option of the Company	$	23,414,828	$	23,666,828

		Note payable in monthly installments of $153,838 including interest at 6.90% per annum, with the final monthly payment due January 2020; collateralized by related real estate and tenants’ leases		11,931,895		12,433,134

		Note payable in monthly installments of $91,675 including interest at 6.27% per annum, with the final monthly payment due July 2026; collateralized by related real estate and tenants’ leases		10,713,990		10,924,291

		Note payable in monthly installments of $128,205 including interest at 6.20% per annum, with a final monthly payment due November 2018; collateralized by related real estate and tenants’ leases		9,173,789		9,605,696

		Note payable in monthly installments of $99,598 including interest at 6.63% per annum, with the final monthly payment due February 2017; collateralized by related real estate and tenants’ leases		5,633,036		6,036,060

		Note payable in monthly installments of $57,403 including interest at 6.50% per annum, with the final monthly payment due February 2023; collateralized by related real estate and tenant lease		5,622,936		5,781,587

		Note payable in monthly installments of $25,631 including interest at 7.50% per annum, with the final monthly payment due May 2022; collateralized by related real estate and tenant lease		2,310,375		2,354,450

		Note payable in monthly installments of $12,453 including interest at 6.85% per annum, Paid March 31, 2011		-		724,734

		Total	$	68,800,849	$	71,526,780

The Company paid off a note payable in the amount of $704,374 on March 31, 2011.

The Company has six mortgaged properties leased to Borders that serve as collateral for six non-recourse loans, including four mortgages that are cross-defaulted and cross-collateralized (the “Crossed Loans”). As of the date of this filing, and directly or indirectly because of the Chapter 11 bankruptcy filing of Borders in February 2011, the Company is in default on the six mortgage loans.

The first defaulted loan had a principal amount outstanding of approximately $2.3 million as of June 30, 2011, and is secured by a leasehold interest in the Borders store in Lawrence, Kansas, with 20,000 square feet of GLA. Borders vacated the store and rejected the lease in April 2011. The leasehold mortgage has not been paid since April 15, 2011. While there is a leasehold mortgage on the property, the Company owns the fee interest in the underlying land. The underlying ground lease is in default, the lender has been notified but has not cured the default. If the lender does not cure the default, the Company could retain possession of the property, the leasehold mortgage loan could be cancelled and the Company would be relieved of any future obligation under the leasehold mortgage of $2.3 million.

The second defaulted loan had a principal amount outstanding of approximately $5.6 million as of June 30, 2011, and is secured by the Borders corporate headquarters in Ann Arbor, Michigan, with 330,322 square feet of GLA. The property represented approximately $769,000 of annualized base rent as of June 30, 2011. To date, Borders has continued to pay its monthly rent for the property. However, because the Borders bankruptcy constituted an event of default under the applicable loan agreement, the lender notified the Company that it is in default and that our obligations under the loan have been accelerated and that default interest is owing. As a result of the Borders liquidation program, the Company would not expect to have sufficient cash flow from the property to continue to pay any of the debt service on the loan and may elect not to pay the debt service.

The four defaulted Crossed Loans had an aggregate principal amount outstanding of approximately $9.2 million as of June 30, 2011, and are secured by the Borders stores in Oklahoma City, Oklahoma, Columbia, Maryland and Germantown, Maryland, and one of the Borders stores in Omaha, Nebraska. In April 2011, Borders vacated the Oklahoma City, Oklahoma store of 24,641 square feet and rejected the lease and stopped making rental payments. The remaining three locations have an aggregate of 78,503 square feet of GLA and represented approximately $1.0 million of annualized base rent as of June 30, 2011. While the Chapter 11 bankruptcy filing of Borders is not a direct event of default under the four Crossed Loans, as a result of the Oklahoma City, Oklahoma closure and lease rejection, the Company did not pay $36,410 in monthly debt service for the loan associated with that location, which was due in the months of May, June and July 2011. In addition, while Borders continued to occupy and pay the monthly rent for the other three locations, due to rental reductions negotiated during the bankruptcy process and approved by the lender, the Company did not have sufficient cash flow to pay $91,198 in monthly debt service due July 1, 2011 for the additional three properties. The lender has declared all four Crossed Loans in default and accelerated the Company’s obligations thereunder. As a result of the Borders liquidation program, the Company would not expect to have sufficient cash flow from the properties to continue to pay any of the debt service on the loan and may elect not to pay the debt service.

		The Company is in active discussions with the lenders for all six non-recourse loans regarding an appropriate course of action. The Company can provide no assurance that its negotiations with the lenders will result in favorable outcomes to it. Failure to restructure these mortgage obligations could result in foreclosure actions and the loss of the mortgaged properties. As of June 30, 2011, the net book value plus accumulated depreciation of the six mortgaged properties was approximately $24.1 million, and the aggregate balances on the non-recourse loans amounted to approximately $17.1 million. Annualized base rents as of June 30, 2011, for the six mortgaged properties, of which only four are currently occupied and paying rent, was approximately $1.8 million, or 5.3% of the Company’s annualized base rent as of June 30, 2011. Future scheduled annual maturities of mortgages payable for years ending June 30, excluding the effect of mortgage defaults, are as follows: 2012 - $4,418,440; 2013 - $4,641,179; 2014 - $26,671,540; 2015 - $4,648,005; 2016 - $4,962,987 and $23,458,698 thereafter. The weighted average interest rate at June 30, 2011 and December 31, 2010 was 5.60% and 5.63%, respectively.