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Notes Receivable
 12 Months Ended
Dec. 31, 2014
Notes Receivable  
Notes Receivable

7. Notes Receivable

Note receivable consists of various loans, and line of credit agreements with certain operators. During 2014, we committed to fund a $500,000 working capital loan to an existing operator with interest at 6.5% maturing in December 2019 and to fund four pre‑development loans of $325,000 each to facilitate the site selection and pre‑construction costs for the future development of four memory care properties. The initial rate of each of these pre‑development loans is 12%,  increasing by 25 basis points per year. One of these pre‑development loans matured due to the acquisition of the land and the outstanding balance of $304,000 was reclassified to real estate under development during 2014. 

At December 31, 2014, we had eleven loans and line of credit agreements with commitments totaling $3,788,000 and a remaining commitment balance of $2,346,000. The weighted average interest rate of these loan commitments is 11.4%. During 2014, 2013, and 2012, we received principal payments, including loan payoffs, of $113,000,  $3,110,000, and $569,000, respectively, and we advanced principal of $1,263,000, $1,004,000, and $2,930,000, respectively, under our notes. In January 2015, we advanced $500,000 under our loans and line of credit agreements and committed to fund a working capital loan of $500,000 to an existing operator with interest at 6.5% maturing in February 2019. Accordingly, we have twelve loans and line of credit agreements with commitments totaling $4,288,000 and a remaining commitment balance of $2,346,000.