NOTE 4: Mortgage Indebtedness

Each of our properties is encumbered by a first mortgage. A summary of each mortgage, as of June 30, 2013 and December 31, 2012, is as follows:


	Outstanding Principal
Property	As of June 30, 2013		As of December 31, 2012		Current Interest Rate			Maturity Date
Belle Creek Apartments		10,575		10,575		2.5	(1)	April 28, 2021
Centrepoint Apartments		17,600		17,600		3.7	(2)	January 1, 2019
Copper Mill Apartments		7,335		7,350		5.7	(3)	May 1, 2021
Crestmont Apartments		6,737		6,750		5.7	(3)	May 1, 2021
Cumberland Glen Apartments		6,886		6,900		5.7	(3)	May 1, 2021
Heritage Trace Apartments		5,489		5,500		5.7	(3)	May 1, 2021
Runaway Bay Apartments		10,238		10,238		3.6	(4)	November 1, 2022
Tresa at Arrowhead		27,500		27,500		2.5	(1)	April 28, 2021

Total /Weighted-Average	$	92,360	$	92,413		3.8	%

(1)	Floating rate at 225 basis points over 30-day LIBOR. As of June 30, 2013 30-day LIBOR was 0.19%. Interest only payments are due monthly.

(2)	Fixed rate. Interest only payments are due monthly. Beginning February 1, 2015, principal and interest payments are required based on a 30-year amortization schedule.

(3)	Fixed rate. Interest only payments are due monthly. Beginning May 1, 2013, principal and interest payments are required based on a 30-year amortization schedule.

(4)	Fixed Rate. Interest only payments are due monthly. Beginning December 1, 2013, principal and interest payments are required based on a 30-year amortization schedule.

As of June 30, 2013 RAIT holds $38,075 of our debt while $54,285 is held by third parties. As of December 31, 2012, RAIT holds $38,075 of our debt while $54,338 is held by third parties. For the three and six months ended June 30, 2013, we paid $241 and $479 of interest to RAIT, respectively. For the three and six months ended June 30, 2012, we paid $241 and $481 of interest to RAIT, respectively.