Notes Receivable (Tables)

12 Months Ended

Dec. 31, 2020

Summary of mezzanine loans and other loan arrangements

Notes receivable consists of mezzanine loans and other loan arrangements. The following table is a summary of our notes receivable components at December 31, 2020 and 2019 (in thousands):


	At December 31,
	2020		2019
Mezzanine loans	$	8,445	$	13,284
Other loans		6,166		4,824
Notes receivable reserve		(146)		(181)
Total	$	14,465	$	17,927

Summary of notes receivable activity

The following table summarizes our notes receivable activity for the years ended December 31, 2020 through 2018 (in thousands):


	Twelve Months Ended December 31,
		2020			2019			2018
Advances under notes receivable	$	2,078	⁽¹⁾	$	8,967	⁽⁴⁾	$	124
Principal payments received under notes receivable		(5,275)	⁽²⁾		(3,503)			(3,848)
Reclassified to lease incentives		(300)	⁽³⁾		(200)	⁽³⁾		—
Notes receivable reserve		35			(52)			37
Net (decrease) increase	$	(3,462)		$	5,212		$	(3,687)

(1)	Funding under working capital notes with interest ranging between 5.0% and 7.5% and maturities between 2025 and 2030.

(2)	Subsequent to December 31, 2020, we received $900 to pay off a note receivable.

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

(4)

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 $1,304 with a commitment to fund $96. The note bears interest at 7.0%. Further, we originated a $550 note agreement, funding $500 with a commitment to fund $50. The note bears interest at 7.5%.