9. Mortgage Notes Payable:

Mortgage notes payable at March 31, 2013 and December 31, 2012 consist of the following:

	Carrying Amount of Mortgage Notes(1)

	March 31, 2013				December 31, 2012
Property Pledged as Collateral	Related Party		Other		Related Party		Other		Effective Interest Rate(2)			Monthly Debt Service(3)		Maturity Date(4)
Arrowhead Towne Center	$	—	$	241,406	$	—	$	243,176		2.76	%	$	1,131		2018
Chandler Fashion Center(5)		—		200,000		—		200,000		3.77	%		625		2019
Chesterfield Towne Center		—		110,000		—		110,000		4.80	%		573		2022
Danbury Fair Mall		119,161		119,161		119,823		119,823		5.53	%		1,538		2020
Deptford Mall		—		204,358		—		205,000		3.76	%		947		2023
Deptford Mall		—		14,736		—		14,800		6.46	%		101		2016
Eastland Mall		—		168,000		—		168,000		5.79	%		811		2016
Fashion Outlets of Chicago(6)		—		34,959		—		9,165		3.00	%		79		2017
Fashion Outlets of Niagara Falls USA		—		125,930		—		126,584		4.89	%		727		2020
Fiesta Mall(7)		—		84,000		—		84,000		4.98	%		341		2015
Flagstaff Mall		—		37,000		—		37,000		5.03	%		151		2015
FlatIron Crossing		—		171,024		—		173,561		1.96	%		1,102		2013
Freehold Raceway Mall(5)		—		232,900		—		232,900		4.20	%		805		2018
Fresno Fashion Fair		80,306		80,306		80,601		80,602		6.76	%		1,104		2015
Great Northern Mall		—		36,166		—		36,395		5.19	%		234		2013
Green Acres Mall(8)		—		324,420		—		—		3.61	%		1,447		2021
Kings Plaza Shopping Center(9)		—		497,609		—		354,000		3.67	%		2,229		2019
Northgate Mall(10)		—		64,000		—		64,000		3.08	%		131		2017
Oaks, The		—		217,164		—		218,119		4.14	%		1,064		2022
Pacific View		—		137,744		—		138,367		4.08	%		668		2022
Paradise Valley Mall(11)		—		80,250		—		81,000		6.30	%		618		2014
Promenade at Casa Grande(12)		—		66,134		—		73,700		5.21	%		248		2013
Salisbury, Centre at		—		115,000		—		115,000		5.83	%		555		2016
Santa Monica Place		—		239,147		—		240,000		2.99	%		1,004		2018
SanTan Village Regional Center(13)		—		138,087		—		138,087		2.61	%		265		2013
South Plains Mall		—		100,949		—		101,340		6.57	%		648		2015
South Towne Center(14)		—		84,915		—		85,247		6.39	%		555		2015
Towne Mall		—		23,273		—		23,369		4.48	%		117		2022
Tucson La Encantada		73,861		—		74,185		—		4.23	%		368		2022
Twenty Ninth Street(15)		—		107,000		—		107,000		3.04	%		252		2016
Valley Mall		—		42,703		—		42,891		5.85	%		280		2016
Valley River Center		—		120,000		—		120,000		5.59	%		558		2016
Victor Valley, Mall of(16)		—		90,000		—		90,000		2.11	%		135		2014
Vintage Faire Mall(14)(17)		—		135,000		—		135,000		3.49	%		480		2015
Westside Pavilion		—		153,986		—		154,608		4.49	%		783		2022
Wilton Mall(18)		—		40,000		—		40,000		1.21	%		29		2013

	$	273,328	$	4,637,327	$	274,609	$	4,162,734

(1): The mortgage notes payable balances include the unamortized debt premiums (discounts). Debt premiums (discounts) represent the excess (deficiency) of the fair value of debt over (under) the principal value of debt assumed in various acquisitions and are amortized to interest expense over the remaining term of the related debt in a manner that approximates the effective interest method.

Debt premiums (discounts) consist of the following:

Property Pledged as Collateral	March 31, 2013			December 31, 2012

Arrowhead Towne Center	$	16,948		$	17,716
Deptford Mall		(18	)		(19	)
Fashion Outlets of Niagara Falls USA		7,038			7,270
FlatIron Crossing		3,806			5,232
Great Northern Mall		(21	)		(28	)
Valley Mall		(285	)		(307	)

	$	27,468		$	29,864

(2): The interest rate disclosed represents the effective interest rate, including the debt premiums (discounts) and deferred finance costs.
(3): The monthly debt service represents the payment of principal and interest.
(4): The maturity date assumes that all extension options are fully exercised and that the Company does not opt to refinance the debt prior to these dates. These extension options are at the Company's discretion, subject to certain conditions, which the Company believes will be met.
(5): A 49.9% interest in the loan has been assumed by a third party in connection with a co-venture arrangement (See Note 11—Co-Venture Arrangement).
(6): The construction loan on the property allows for borrowings up to $140,000, bears interest at LIBOR plus 2.50% and matures on March 5, 2017, including extension options. At March 31, 2013 and December 31, 2012, the total interest rate was 3.00%.
(7): The Company is in negotiations with the loan servicer, which will likely result in a transition of the property to the loan servicer or receiver.
(8): On January 24, 2013, in connection with the Company's acquisition of Green Acres Mall (See Note 14—Acquisitions), the Company placed a new loan on the property that allowed for borrowings up to $325,000, bears interest at an effective interest rate of 3.61% and matures on February 3, 2021. Concurrent with the acquisition, the Company borrowed $100,000 on the loan. On January 31, 2013, the Company exercised its option to borrow an additional $225,000 on the loan.
(9): On January 3, 2013, the Company exercised its option to borrow an additional $146,000 on the loan.
(10): The loan bears interest at LIBOR plus 2.25% and matures on March 1, 2017. At March 31, 2013 and December 31, 2012, the total interest rate was 3.08% and 3.09%, respectively.
(11): The loan bears interest at LIBOR plus 4.0% with a total interest rate floor of 5.50% and matures on August 31, 2014. At March 31, 2013 and December 31, 2012, the total interest rate was 6.30%.
(12): The loan bears interest at LIBOR plus 4.0% with a LIBOR rate floor of 0.50% and matures on December 30, 2013. At March 31, 2013 and December 31, 2012, the total interest rate was 5.21%.
(13): The loan bears interest at LIBOR plus 2.10% and matures on June 13, 2013. At March 31, 2013 and December 31, 2012, the total interest rate was 2.61%. On April 29, 2013, the Company obtained a loan commitment to replace the existing loan with a new six-year $138,000 loan that will bear interest at a fixed rate of 3.09%.
(14): On April 30, 2013, the existing loan on Vintage Faire Mall was paid off in full and the loan on South Towne Center was assumed by Vintage Faire Mall. An additional $15,200 loan was added to the Vintage Faire loan that bears interest at 2.50% and matures on November 5, 2015.

(15): The loan bears interest at LIBOR plus 2.63% and matures on January 18, 2016. At March 31, 2013 and December 31, 2012, the total interest rate was 3.04%.
(16): The loan bears interest at LIBOR plus 1.60% until May 6, 2013 and increases to LIBOR plus 2.25% until maturity on November 6, 2014. At March 31, 2013 and December 31, 2012, the total interest rate was 2.11% and 2.12%, respectively.
(17): On April 30, 2013, the loan was paid off in full.
(18): The loan bears interest at LIBOR plus 0.675% and matures on August 1, 2013. As additional collateral for the loan, the Company is required to maintain a deposit of $40,000 with the lender, which has been included in restricted cash. The interest on the deposit is not restricted. At March 31, 2013 and December 31, 2012, the total interest rate was 1.21% and 1.22%, respectively.

Most of the mortgage loan agreements contain a prepayment penalty provision for the early extinguishment of the debt.

Most of the Company's mortgage notes payable are secured by the properties on which they are placed and are non-recourse to the Company. As of March 31, 2013 and December 31, 2012, a total of $282,830 and $213,466, respectively, of the mortgage notes payable could become recourse to the Company. The Company has indemnity agreements from consolidated joint venture partners for $21,270 and $28,208 of the guaranteed amounts at March 31, 2013 and December 31, 2012, respectively.

The Company expects that all loan maturities during the next twelve months will be refinanced, restructured, extended and/or paid-off from the Company's line of credit or with cash on hand.

Total interest expense capitalized was $3,507 and $2,353 during the three months ended March 31, 2013 and 2012, respectively.

Related party mortgage notes payable are amounts due to affiliates of NML. See Note 17—Related Party Transactions for interest expense associated with loans from NML.

The fair value of mortgage notes payable at March 31, 2013 and December 31, 2012 was $5,038,759 and $4,567,658, respectively, based on current interest rates for comparable loans. The method for computing fair value (Level 2 measurement) was determined using a present value model and an interest rate that included a credit value adjustment based on the estimated value of the property that serves as collateral for the underlying debt.