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Mortgage Indebtedness
 9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Mortgage Indebtedness

NOTE 4:    Mortgage Indebtedness

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

 

     Outstanding Principal             

Property

    As of
September 30, 2013		      As of
December 31, 2012		      Current
Interest Rate		     Maturity Date

Belle Creek Apartments

      10,575         10,575         2.4 (1)    April 28, 2021

Centrepoint Apartments

      17,600         17,600         3.7 (2)    January 1, 2019

Copper Mill Apartments

      7,314         7,350         5.7 (3)    May 1, 2021

Crestmont Apartments

      6,717         6,750         5.7 (3)    May 1, 2021

Cumberland Glen Apartments

      6,867         6,900         5.7 (3)    May 1, 2021

Heritage Trace Apartments

      5,473         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         2.4 (1)    April 28, 2021
  

 

 

     

 

 

     

 

 

    

Total /Weighted-Average

    $ 92,284       $ 92,413         3.7 %   
  

 

 

     

 

 

     

 

 

    

 

(1) Floating rate at 225 basis points over 30-day LIBOR. As of September 30, 2013, 30-day LIBOR was 0.18%. 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 September 30, 2013 RAIT holds $38,075 of our debt while $54,209 is held by third parties. As of December 31, 2012, RAIT held $38,075 of our debt while $54,338 was held by third parties. For the three and nine months ended September 30, 2013, we paid $243 and $722 of interest to RAIT, respectively. For the three and nine months ended September 30, 2012, we paid $243 and $724 of interest to RAIT, respectively.

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.

NOTE 4:    Mortgage Indebtedness

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

 

Property

   Outstanding
Principal		     Current
Interest Rate		     Maturity Date  

Interest Terms

Crestmont Apartments

   $ 6,750        5.7 %    May 1, 2021   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.

Cumberland Glen Apartments

     6,900        5.7      May 1, 2021   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.

Copper Mill Apartments

     7,350        5.7      May 1, 2021   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.

Property

   Outstanding
Principal		     Current
Interest Rate		     Maturity Date  

Interest Terms

Heritage Trace Apartments

     5,500        5.7      May 1, 2021   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.

Belle Creek Apartments

     10,575        2.5      April 28, 2021   Fixed rate of interest at 2.5% for the first two years with a floating rate thereafter at 225 basis points over 30-day LIBOR. Interest only.

Tresa at Arrowhead

     27,500        2.5      April 28, 2021   Fixed rate of interest at 2.5% for the first two years with a floating rate thereafter at 225 basis points over 30-day LIBOR. Interest only.

Runaway Bay Apartments

     10,238        3.6      November 1, 2022   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.

Centrepoint Apartments

     17,600        3.7      January 1, 2019   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.
 

 

 

    

 

 

      

Total/Weighted-Average

   $ 92,413        3.8 %     
 

 

 

    

 

 

      

As of December 31, 2012 our sponsor holds $38,075 of our debt while $54,338 is held by third parties. From April 29, 2011 to September 16, 2011 our sponsor held $64,575 of our debt. On September 16, 2011 $26,500 of this debt was sold to third parties. For the years ended December 31, 2012 and 2011 we paid $968 and $1,347 of interest to our sponsor, respectively.

Maturity of Indebtedness

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

 

2013

    $ 213   

2014

      527   

2015

      843   

2016

      905   

2017

      950   

Thereafter

      88,975   
  

 

 

  

Total

    $ 92,413   
  

 

 

  

As of December 31, 2012, the fair value of our fixed-rate indebtedness was $95,827. 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, 2012.