NOTE 4: Mortgage Indebtedness

The following table contains summary information concerning the indebtedness that encumbered our properties as of March 31, 2015:


	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		17,520		17,520		3.7	%(2)	January 1, 2019
Copper Mill Apartments		7,174		7,174		5.7	%	May 1, 2021
Crestmont Apartments		6,589		6,589		5.7	%	May 1, 2021
Cumberland Glen Apartments		6,735		6,735		5.7	%	May 1, 2021
Heritage Trace Apartments		5,369		5,369		5.7	%	May 1, 2021
Runaway Bay Apartments		9,983		9,983		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		44,672		45,897		2.8	%(5)	April 1, 2016
Kings’ Landing		21,200		21,200		4.0	%(6)	June 1, 2022
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
Lenoxplace		15,991		15,991		3.7	%	November 1, 2021
Bennington Pond		11,375		11,375		3.7	%	December 1, 2024
Stonebridge Crossing		19,370		19,370		3.4	%	January 1, 2022
Prospect Park		9,230		9,230		3.6	%	January 1, 2025
Brookside		13,455		13,455		3.6	%	January 1, 2025
Jamestown		22,880		22,880		3.6	%	January 1, 2025
Meadows		24,245		24,245		3.6	%	January 1, 2025
Oxmoor		35,815		35,815		3.6	%	January 1, 2025
Iron Rock Ranch		22,900		22,900		3.4	%	February 1, 2025

Total indebtedness/Weighted-Average	$	421,388	$	422,613		3.6	%

(1)	Floating rate at 225 basis points over 30-day LIBOR. As of March 31, 2015, 30-day LIBOR was 0.18%. 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 March 31, 2015 30-day LIBOR was 0.18%. Interest only payments are due monthly. As of March 31, 2015 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 March 31, 2015 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, 2014 (dollars in thousands):


	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		7,200		7,200		5.7	%	May 1, 2021
Crestmont Apartments		6,612		6,612		5.7	%	May 1, 2021
Cumberland Glen Apartments		6,759		6,759		5.7	%	May 1, 2021
Heritage Trace Apartments		5,388		5,388		5.7	%	May 1, 2021
Runaway Bay Apartments		10,033		10,033		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		44,939		46,471		2.8	%(5)	April 1, 2016
Kings’ Landing		21,200		21,200		4.0	%(6)	June 1, 2022
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
Lenoxplace		15,991		15,991		3.7	%	November 1, 2021
Bennington Pond		11,375		11,375		3.7	%	December 1, 2024
Stonebridge Crossing		19,370		19,370		3.4	%	January 1, 2022
Prospect Park		9,230		9,230		3.6	%	January 1, 2025
Brookside		13,455		13,455		3.6	%	January 1, 2025
Jamestown		22,880		22,880		3.6	%	January 1, 2025
Meadows		24,245		24,245		3.6	%	January 1, 2025
Oxmoor		35,815		35,815		3.6	%	January 1, 2025

Total mortgage debt/Weighted- Average	$	398,977	$	400,509		3.6	%
Secured Credit Facility		18,392		18,392		2.7	%(4)	October 25, 2016

Total indebtedness /Weighted-Average	$	417,369	$	418,901		3.6	%

(1)	Floating rate at 225 basis points over 30-day LIBOR. As of December 31, 2014, 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 250 basis points over 30-day LIBOR. As of December 31, 2014, 30-day LIBOR was 0.17%. Interest only payments are due monthly.

(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 December 31, 2014 we were in compliance with all financial covenants contained in our indebtedness.

The weighted average effective interest rate of our mortgage indebtedness was 3.6% as of March 31, 2015. As of March 31, 2015, RAIT held $38,075 of our mortgage debt while $383,313 was held by third parties. As of December 31, 2014, RAIT held $38,075 of our mortgage debt while $360,902 was held by third parties. During each of the three-month periods ended March 31, 2015 and 2014, we paid approximately $238, of interest to RAIT.

Mortgage Indebtedness

On January 27, 2015 we entered into a loan agreement for a $22,900 loan secured by a first mortgage on our Iron Rock Ranch property. The loan bears interest at a rate of 3.4% per annum, provides for monthly payments of interest only until the maturity date of February 1, 2025.

On April 13, 2015 we entered into a loan agreement for a $20,527 loan secured by a first mortgage on our Stonebridge at the Ranch property. The loan bears interest at a rate of 3.2% per annum, provides for monthly payments of interest only until the maturity date of May 1, 2025.