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Notes Receivable
 12 Months Ended
Dec. 31, 2018
Notes Receivable.  
Notes Receivable

7. Notes Receivable

Notes receivable consists of mezzanine loans and other loan arrangements. The following table is a summary of our notes receivable components at December 31, 2018 and 2017 (in thousands):

 

 

 

 

 

 

 

 

At December 31,

 

 

2018

 

2017

 

Mezzanine loans

$

9,868

 

$

13,700

 

Other loans

 

2,975

 

 

2,868

 

Notes receivable reserve

 

(128)

 

 

(166)

 

Total

$

12,715

 

$

16,402

 

 

The following table summarizes our notes receivable activity for the years ended December 31, 2018 through 2016 (in thousands):

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

2018

 

 

2017

 

 

2016

Advances under notes receivable

$

124

 

$

 —

 

$

14,969

Principal payments received under notes receivable

 

(3,848)

 

 

(25)

 

 

(100)

Reclassified to real estate under development (1)

 

 —

 

 

 —

 

 

(237)

Notes receivable reserve

 

37

 

 

 —

 

 

(166)

Net (decrease) increase in notes receivable

$

(3,687)

 

$

(25)

 

$

14,466

(1)

Represents pre-development loans which matured due to land acquisitions and commencement of development projects.

During the fourth quarter of 2018, we entered into a $6,828,000 mezzanine loan commitment for the development of a 204-unit ILF/ALF/MC in Georgia which will be funded during the first quarter of 2019. The mezzanine loan has a five-year term and bears interest at 12%, with 8% current-pay during the first 46 months of the loan, and the balance accruing to the note and 12% current-pay thereafter.