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NOTES AND INTEREST PAYABLE | 12 Months Ended
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Dec. 31, 2015
Debt Disclosure [Abstract] |
NOTES AND INTEREST PAYABLE | NOTE 6. NOTES AND INTEREST PAYABLE Below is a summary of our notes and interest payable as of December 31, 2015 (dollars in thousands):
|  | Notes |  | Accrued |  |  |  |
|  | Payable |  |  | Interest |  |  | Total Debt |
Apartments |  | $ | 507,498 |  |  | $ | 1,499 |  |  | $ | 508,997 |
Apartment under construction |  |  | 11,139 |  |  |  | — |  |  |  | 11,139 |
Commercial |  |  | 109,269 |  |  |  | 509 |  |  |  | 109,778 |
Land held for development |  |  | 44,417 |  |  |  | 116 |  |  |  | 44,533 |
Real estate subject to sales contract |  |  | 5,953 |  |  |  | 469 |  |  |  | 6,422 |
Mezzanine financing |  |  | 122,900 |  |  |  | — |  |  |  | 122,900 |
Other |  |  | 20,334 |  |  |  | 727 |  |  |  | 21,061 |
Total |  | $ | 821,510 |  |  | $ | 3,320 |  |  | $ | 824,830 |
Unamortized deferred borrowing costs |  |  | (20,070 | ) |  |  | — |  |  |  | (20,070 | )
Total |  |  | 801,440 |  |  |  | 3,320 |  |  |  | 804,760 |
The following table schedules the principal payments on the notes payable for the next five years and thereafter (dollars in thousands):
Year |  |  | Amount |
2016 |  |  | $ | 96,535 |
2017 |  |  |  | 31,236 |
2018 |  |  |  | 43,890 |
2019 |  |  |  | 34,623 |
2020 |  |  |  | 127,370 |
Thereafter |  |  |  | 487,856 |
Total |  |  | $ | 821,510 |
Interest payable at December 31, 2015, was $3.6 million. Interest accrues at rates ranging from 2.5% to 12.0% per annum, and mature between 2016 and 2055. The mortgages were collateralized by deeds of trust on real estate having a net carrying value of $678 million. During the year the Company refinanced or modified ten loans with a total principal balance of $136 million. The refinancing resulted in lower interest rates and the extension of the term of the loan. The modifications resulted in lower interest rates. The transactions provide for lower monthly payments over the term of the loans. On May 28, 2015, the Company secured additional financing of $120.0 million from an independent third party. At closing $84.4 million was advanced to the Company. The financing can be used for general corporate purposes, acquisition of multi-family apartment complexes and to reduce debt. The note has a term of five years at an interest rate of 30 day Libor plus 10.75%. The note is interest only, payable monthly, with the principal due at the end of the five years. The loan is secured by various equity interests in certain residential apartments. In November 2015 the note was amended to cap the loan amount at $84.4 million in order to allow for a construction loan of $50 million on an apartment complex being developed in Rowlett, Texas. All other terms and conditions of the loan remained the same. The note contains customary restrictions, representations, covenants, corporate and officer guarantees, events of default and require the Company to meet certain financial covenants. The Company believes it is in compliance with these financial covenants at December 31, 2015. Simultaneous with the closing of the above financing, the Company amended its existing financing of $40.0 million from an independent third party. The note has a term of five years at an interest rate of 12.0%. The note is interest only for the first year with quarterly principal payments due of $0.5 million starting April 1, 2015. As of December 31, 2015, the outstanding balance on the loan was $38.5 million. The loan is secured by various equity interests in residential apartments and can be prepaid at a penalty rate of 4% for year 1 with the penalty declining by 1% each year thereafter. The note contains customary restrictions, representations, covenants, corporate and officer guarantees, events of default and require the Company to meet certain financial covenants. The Company believes it is in compliance with these financial covenants at December 31, 2015. There are various land mortgages, secured by the property, that are in the process of a modification or extension to the original note due to expiration of the loan. We are in constant contact with these lenders, working together in order to modify the terms of these loans and we anticipate a timely resolution that is similar to the existing agreement or subsequent modification. In conjunction with the development of various apartment projects and other developments, we drew down $9.9 million in construction loans during the twelve months ended December 31, 2015.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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