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NOTES RECEIVABLE | 6 Months Ended
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Jun. 30, 2012
Mortgage Loans on Real Estate [Abstract] |
Notes Receivable | NOTES RECEIVABLE As of June 30, 2012, the Company’s notes receivable, net, aggregated $88.7 million, and were collateralized either by the underlying properties or the borrowers' ownership interests in the entities that own the properties and/or by the borrowers' personal guarantee subject, as applicable, to senior liens, as follows:
Description | Effective Interest Rate | Maturity Date | First Priority Liens | Net Carrying amount of Notes Receivable | Extension Options
(dollars in thousands) |  |  |  |  |
Zero Coupon Loan | 24.0% | 1/3/2016 | $ | 166,200 |  | $ | 3,762 |  | —
Mezzanine Loan | 10.0% | 12/31/2013 | 85,835 |  | 9,089 |  | —
Mezzanine Loan | 15.0% | Upon Capital Event | 11,925 |  | 3,834 |  | —
First Mortgage Loan | 12.0% | 12/5/2012 | — |  | 19,500 |  | —
First Mortgage Loan | 9.2% | 3/30/2013 | — |  | 3,000 |  | —
First Mortgage Loan | 10.8% | Demand | — |  | 10,000 |  | —
First Mortgage Loan | 5.3% | Demand | — |  | 18,500 |  | —
First Mortgage Loan | 6.0% | 12/1/2012 | — |  | 12,609 |  | 2 x 6 months
Construction Loan | 20.5% | 10/1/2012 | — |  | 5,400 |  | —
Individually less than 3.0% | 10.0% to 12.0% | 12/31/13 to 1/1/17 | 37,623 |  | 3,018 |  | —
Total |  |  |  |  | $ | 88,712 |  |
During April 2012, the Company acquired a first mortgage loan, collateralized by a property located in Brooklyn, New York, for $18.5 million. The loan, with an initial maturity date of May 2012, has been in default since November 2011 and has been accruing interest at a 16.0% annual default interest rate. As of June 30, 2012, the loan had an outstanding balance of $23.5 million, including default interest, and was in maturity default. The Company has commenced foreclosure proceedings and is currently awaiting the appointment of a receiver.
6. | NOTES RECEIVABLE (continued)
Allowances for real estate notes receivable are established based upon management's quarterly review of the investments. In performing this review, management considers the estimated net recoverable value of the loan as well as other factors, including the fair value of any collateral, the amount and status of any senior debt, and the prospects for the borrower. Because this determination is based upon projections of future economic events, which are inherently subjective, the amounts ultimately realized from the loans may differ materially from the carrying value at the balance sheet date. The Company charges additions to the allowance for loan losses to current period earnings through a provision for loan losses. The activity in the allowance for notes receivable for the six months ended June 30, 2012 is as follows:
(dollars in thousands) | Allowance for Notes Receivable
Balance at December 31, 2011 | $ | 3,276 |
Provision for losses on notes receivable | 5,115 |
Balance at June 30, 2012 | $ | 8,391 |

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- Definition The entire disclosure for mortgage loans on real estate, this includes the supplemental information pertaining to each mortgage loan receivable that equals or exceeds three percent of the carrying amount of mortgages. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 948 -SubTopic 310 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-29) -URI http://asc.fasb.org/extlink&oid=6589523&loc=d3e617274-123014 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Subparagraph Schedule IV -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 29 -Article 12 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04.(c) Schedule IV) -URI http://asc.fasb.org/extlink&oid=6882300&loc=d3e5864-122674 + Details
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