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Mortgage Indebtedness | 9 Months Ended
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Sep. 30, 2014
Mortgage Indebtedness | NOTE 4: Mortgage Indebtedness The following table contains summary information concerning the indebtedness that encumbered our properties as of September 30, 2014:
|  | Outstanding Principal |  |  | Carrying Amount |  |  | Effective Interest Rate |  |  | Maturity Date
Belle Creek Apartments |  | $ | 10,575 |  |  | $ | 10,575 |  |  |  | 2.4 | %(1) |  | April 28, 2021
Berkshire Square Apartments |  |  | 8,612 |  |  |  | 8,612 |  |  |  | 4.4 | %(3) |  | January 1, 2021
Centrepoint Apartments |  |  | 17,600 |  |  |  | 17,600 |  |  |  | 3.7 | %(2) |  | January 1, 2019
Copper Mill Apartments |  |  | 7,223 |  |  |  | 7,223 |  |  |  | 5.7 | % |  | May 1, 2021
Crestmont Apartments |  |  | 6,633 |  |  |  | 6,633 |  |  |  | 5.7 | % |  | May 1, 2021
Cumberland Glen Apartments |  |  | 6,781 |  |  |  | 6,781 |  |  |  | 5.7 | % |  | May 1, 2021
Heritage Trace Apartments |  |  | 5,405 |  |  |  | 5,405 |  |  |  | 5.7 | % |  | May 1, 2021
Runaway Bay Apartments |  |  | 10,081 |  |  |  | 10,081 |  |  |  | 3.6 | % |  | November 1, 2022
Tresa at Arrowhead |  |  | 27,500 |  |  |  | 27,500 |  |  |  | 2.4 | %(1) |  | April 28, 2021
Reserve at Eagle Ridge |  |  | 18,850 |  |  |  | 18,850 |  |  |  | 4.7 | % |  | March 1, 2024
OKC Portfolio |  |  | 45,189 |  |  |  | 47,025 |  |  |  | 2.8 | %(5) |  | April 1, 2016
Kings’ Landing |  |  | 21,200 |  |  |  | 21,200 |  |  |  | 4.0 | %(6) |  | June 1, 2021
Crossings |  |  | 15,313 |  |  |  | 15,313 |  |  |  | 3.9 | % |  | June 1, 2024
Carrington Park |  |  | 14,235 |  |  |  | 14,235 |  |  |  | 4.0 | % |  | August 1, 2024
Arbors at the Reservoir |  |  | 13,150 |  |  |  | 13,150 |  |  |  | 4.0 | % |  | August 1, 2024
Walnut Hill |  |  | 18,650 |  |  |  | 18,650 |  |  |  | 3.4 | % |  | October 1, 2021
Total mortgage debt/Weighted-Average |  | $ | 246,997 |  |  | $ | 248,833 |  |  |  | 3.7 | % |  |
Secured Credit Facility |  |  | 5,000 |  |  |  | 5,000 |  |  |  | 2.7 | %(4) |  | October 25, 2016
Total indebtedness /Weighted-Average |  | $ | 251,997 |  |  | $ | 253,833 |  |  |  | 3.7 | % |  |
(1) | Floating rate at 225 basis points over 30-day LIBOR. As of September 30, 2014, 30-day LIBOR was 0.15%. 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 February 1, 2016, principal and interest payments are required based on a 30-year amortization schedule.
(4) | Floating rate at 250 basis points over 30-day LIBOR. As of September 30, 2014, 30-day LIBOR was 0.15%. Interest only payments are due monthly. As of September 30, 2014, we were in compliance with all financial covenants contained in the credit facility.
(5) | Contractual interest rate is 5.6%. The debt was assumed and recorded at a premium that will be amortized to interest expense over the remaining term. Principal and interest payments are required based on a 30-year amortization schedule.
(6) | Fixed Rate. Interest only payments are due monthly. Beginning June 1, 2017, principal and interest payments are required based on a 30-year amortization schedule.
As of September 30,2014 we were in compliance with all financial covenants contained in our indebtedness. The following table contains summary information concerning the indebtedness that encumbered our properties as of December 31, 2013:
|  | Outstanding Principal |  |  | Carrying Amount |  |  | Effective Interest Rate |  |  | Maturity Date
Belle Creek Apartments |  | $ | 10,575 |  |  | $ | 10,575 |  |  |  | 2.4 | %(1) |  | April 28, 2021
Berkshire Square Apartments |  |  | 8,612 |  |  |  | 8,612 |  |  |  | 4.4 | %(3) |  | January 1, 2021
Centrepoint Apartments |  |  | 17,600 |  |  |  | 17,600 |  |  |  | 3.7 | %(2) |  | January 1, 2019
Copper Mill Apartments |  |  | 7,293 |  |  |  | 7,293 |  |  |  | 5.7 | % |  | May 1, 2021
Crestmont Apartments |  |  | 6,698 |  |  |  | 6,698 |  |  |  | 5.7 | % |  | May 1, 2021
Cumberland Glen Apartments |  |  | 6,846 |  |  |  | 6,846 |  |  |  | 5.7 | % |  | May 1, 2021
Heritage Trace Apartments |  |  | 5,457 |  |  |  | 5,457 |  |  |  | 5.7 | % |  | May 1, 2021
Runaway Bay Apartments |  |  | 10,222 |  |  |  | 10,222 |  |  |  | 3.6 | % |  | November 1, 2022
Tresa at Arrowhead |  |  | 27,500 |  |  |  | 27,500 |  |  |  | 2.4 | %(1) |  | April 28, 2021
Total mortgage debt/Weighted-Average |  | $ | 100,803 |  |  | $ | 100,803 |  |  |  | 3.8 | % |  |
Secured Credit Facility |  |  | 2,500 |  |  |  | 2,500 |  |  |  | 2.9 | %(4) |  | October 25, 2016
Total indebtedness /Weighted-Average |  | $ | 103,303 |  |  | $ | 103,303 |  |  |  | 3.8 | % |  |
(1) | Floating rate at 225 basis points over 30-day LIBOR. As of December 31, 2013, 30-day LIBOR was 0.17%. 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 February 1, 2016, principal and interest payments are required based on a 30-year amortization schedule.
(4) | Floating rate at 275 basis points over 30-day LIBOR. As of December 31, 2013, 30-day LIBOR was 0.17%. Interest only payments are due monthly. As of June 30, 2014, we were in compliance with all financial covenants contained in the credit facility.
The weighted average interest rate of our mortgage indebtedness was 3.7% as of September 30, 2014. As of September 30, 2014, RAIT held $38,075 of our mortgage indebtedness while $208,922 was held by third parties. As of December 31, 2013, RAIT held $38,075 of our mortgage indebtedness while $65,228 was held by third parties. For each of the three and nine-month periods ended September 30, 2014 we paid approximately $244 and $723 respectively, of interest to RAIT. On October 24, 2014 we entered into a loan agreement for a $15,991 loan secured by a first mortgage on our Lenoxplace property. The loan bears interest at a fixed rate of 3.7% per annum, provides for monthly payments of interest only until the maturity date of November 1, 2021 when the principal balance, accrued interest and all other amounts due under the loan become due. On September 15, 2014, we entered into a loan agreement for a $18,650 loan secured by a first mortgage on our Walnut Hill property. The loan bears interest at a fixed rate of 3.4% per annum, provides for monthly payments of interest only until the maturity date of October 1, 2021 when the principal balance, accrued interest and all other amounts due under the loan become due. On September 9, 2014 we amended our secured revolving credit agreement with the Huntington National Bank. The amendment increased the facility from $20,000 to $30,000 and bears interest at LIBOR plus 2.50%. On July 15, 2014, we entered into a loan agreement for a $13,150 loan secured by a first mortgage on our Arbors property. The loan bears interest at a fixed rate of 4.0% per annum, provides for monthly payments of interest only until the maturity date of August 1, 2024 when the principal balance, accrued interest and all other amounts due under the loan become due. On July 15, 2014, we entered into a loan agreement for a $14,235 loan secured by a first mortgage on our Carrington property. The loan bears interest at a fixed rate of 4.0% per annum, provides for monthly payments of interest only until the maturity date of August 1, 2024 when the principal balance, accrued interest and all other amounts due under the loan become due. On May 27, 2014, we entered into a loan agreement for a $15,313 loan secured by a first mortgage on our Crossings property. The loan bears interest at a fixed rate of 3.9% per annum, provides for monthly payments of interest only until the maturity date of June 1, 2024 when the principal balance, accrued interest and all other amounts due under the loan become due. On March 31, 2014, in connection with the acquisition of King’s Landing, we assumed $21,200 of an existing loan secured by the property. The loan bears interest at a fixed rate of 4.0% per annum, provides for monthly payments of interest only until June 1, 2017 when principal and interest payments will be due monthly based on a 30-year amortization schedule, and matures on June 1, 2021. On February 28, 2014, in connection with the acquisition of the OKC Portfolio we assumed $45,763 of an existing loan secured by the property. The Loan bears interest at a fixed rate of 5.6% per annum, provides for monthly payments of principal and interest based on a 30-year amortization schedule and matures on April 1, 2016. We recorded the debt assumed at its fair value of $48,312 based on a market rate of 2.8% for the remaining term. The resulting premium of $2,549 will be amortized to interest expense over the remaining term of the mortgage. On February 7, 2014, we entered into a loan agreement for an $18,850 loan secured by a first mortgage on our Reserve at Eagle Ridge property. The loan bears interest at a fixed rate of 4.7% per annum, provides for monthly payments of interest only until the maturity date of March 1, 2024 when the principal balance, accrued interest and all other amounts due under the loan become due.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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