Notes Receivable

6 Months Ended

Jun. 30, 2019

4.	Notes Receivable

Notes receivable consists of mezzanine loans and other loan arrangements. The following table is a summary of our notes receivable components as of June 30, 2019 and December 31, 2018 (in thousands):


	At June 30, 2019		At December 31, 2018
Mezzanine loans	$	16,692	$	9,868
Other loans		3,669		2,975
Notes receivable reserve		(204)		(128)
Total	$	20,157	$	12,715

The following tables summarizes our notes receivable activity for the six months ended June 30, 2019 and 2018 (dollar amounts in thousands):


	Six Months Ended June 30,
		2019			2018
Advances under notes receivable	$	7,766	⁽¹⁾	$	—
Principal payments received under notes receivable		(49)			(2,352)
Reclassified to lease incentives ⁽²⁾		(200)			—
Notes receivable reserve		(75)			24
Total	$	7,442		$	(2,328)

(1)

We originated a $6,800 mezzanine loan commitment for the development of a 204-unit ILF/ALF/MC in Georgia. The mezzanine loan has a five-year term and a 12.0% return, a portion of which is paid in cash, and the remaining portion of which is deferred during the first 46 months. Additionally, we originated a $1,400 note agreement, funding $582 with a commitment to fund $818. The note bears interest at 7.0%. Further, we originated a $550 note agreement, funding $200 with a commitment to fund $350. The note bears interest at 7.5%.

(2)	Represents an interim working capital loan related to a development project which matured upon completion of the development project and commencement of the lease.