NOTE 4: Indebtedness

The following table contains summary information concerning the indebtedness that encumbered our properties as of December 31, 2013 and 2012:


		Outstanding Principal
	As of December 31, 2013		As of December 31, 2012		Current Interest Rate			Maturity Date
Belle Creek Apartments		10,575		10,575		2.4	%(1)	April 28, 2021
Berkshire Square Apartments		8,612		—		4.4	%(5)	January 1, 2021
Centrepoint Apartments		17,600		17,600		3.7	%(2)	January 1, 2019
Copper Mill Apartments		7,293		7,350		5.7	%(3)	May 1, 2021
Crestmont Apartments		6,698		6,750		5.7	%(3)	May 1, 2021
Cumberland Glen Apartments		6,846		6,900		5.7	%(3)	May 1, 2021
Heritage Trace Apartments		5,457		5,500		5.7	%(3)	May 1, 2021
Runaway Bay Apartments		10,222		10,238		3.6	%(4)	November 1, 2022
Tresa at Arrowhead		27,500		27,500		2.4	%(1)	April 28, 2021

Total mortgage debt/Weighted-Average	$	100,803	$	92,413		3.8	%

Secured Credit Facility		2,500		—		2.9	%(6)	October 25, 2016

Total indebtedness /Weighted-Average	$	103,303	$	92,413		3.8	%

(1)	Floating rate at 225 basis points over 30-day LIBOR. As of December 31, 2013 and 2012, 30-day LIBOR was 0.17% and 0.21%, respectively. Interest only payments are due monthly. These mortgages are held by RAIT.

(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.

(5)	Fixed Rate. Interest only payments are due monthly. Beginning February 1, 2016, principal and interest payments are required based on a 30-year amortization schedule.

(6)	Floating rate at 275 basis points our 30-day LIBOR. As of December 31, 2013, 30-day LIBOR was 0.17%. Interest only payments are due monthly.

The weighted average interest rate of our mortgage indebtedness was 3.8% as of December 31, 2013. As of December 31, 2013, RAIT held $38,100 of our debt while $65,200 was held by third parties. As of December 31, 2012, RAIT held $38,200 of our debt while $54,300 was held by third parties. For the year ended December 31, 2013 and 2012, we paid approximately $722 and $724 respectively, of interest to RAIT.

On October 25, 2013, we entered into a $20,000 secured revolving credit agreement with The Huntington National Bank to be used to acquire properties, capital expenditures and for general corporate purposes. The facility has a 3-year term, bears interest at LIBOR plus 2.75% and contains customary financial covenants for this type of revolving credit agreement. As of December 31, 2013 we had $2,500 of debt outstanding on this credit facility. As of December 31, 2013, we were in compliance with all financial covenants contained in the $20,000 secured facility.

On December 27, 2013, we entered into a loan agreement for an $8.6 million loan secured by a first mortgage on our Berkshire Square property. We used a portion of the loan to repay an advance of approximately $8.0 million made with respect to the property pursuant to our secured credit facility. The loan bears interest at a fixed rate of 4.42% per annum, provides for monthly payments of interest only until February 2016 and for payments of principal and interest thereafter. The loan matures on January 1, 2021 and $7.5 million will be due upon maturity. Prior to placement of the loan into a securitization, or if the placement of the loan into a securitization does not occur within the first year of the loan term, prepayment of the loan in full but not in part is permitted, along with payment of additional consideration which during the defined yield maintenance period is equal to the Federal Home Loan Mortgage Corporation’s defined yield maintenance prepayment premium, subject to a minimum of 1% of the loan amount. If the loan is placed into a securitization within the first year of the loan term, the loan cannot thereafter be prepaid or defeased for two years following such placement of the loan into a securitization. Thereafter, the loan may be defeased pursuant to the terms of the note and loan agreement. The loan may be prepaid in full without additional consideration during the last three months of the loan term.

Maturity of Indebtedness

The following table displays the principal repayments on of our indebtedness by year:


2014	$	550
2015		869
2016		3,556
2017		1,120
2018		1,172
Thereafter		96,036

Total	$	103,303

As of December 31, 2013, the fair value of our fixed-rate indebtedness was $63,324. The fair value estimate of our fixed rate debt was estimated using a discounted cash flow analysis utilizing interest rates we would expect to pay for debt of a similar type and remaining maturity if the loans were originated at December 31, 2013.