XML 24 R14.htm IDEA: XBRL DOCUMENT v3.4.0.3
NOTES PAYABLE
 3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
NOTES PAYABLE

NOTE 5. NOTES PAYABLE

 

Below is a summary of our notes and interest payable as of March 31, 2016 (dollars in thousands):

 

   Notes Payable   Accrued Interest   Total Debt 
Apartments  $522,885   $1,563   $524,448 
Commercial   109,707    505    110,212 
Land   42,727    (187)   42,540 
Real estate held for sale   376    —    376 
Real estate subject to sales contract   5,750    470    6,220 
Mezzanine financing   122,900    (201)   122,699 
Other   20,594    726    21,320 
Total  $824,939   $2,876   $827,815 
                
Unamortized deferred borrowing costs   (19,314)   —    (19,314)
Total  $805,625   $2,876   $808,501 

 

The segment labeled as “Other” consists of unsecured or stock-secured notes payable.

 

With respect to the additional notes payable due to the acquisition of properties or refinancing of existing mortgages, a summary of some of the more significant transactions is discussed below:

 

During the year the Company refinanced or modified two loans with a total principal balance of $37.2 million. The refinancing resulted in lower interest rates and the extension of the term of the loan. The transactions provide for lower monthly payments over the term of loans.

 

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 $5.1 million in construction loans during the three months ended March 31, 2016.

 

The properties that we have sold to a related party and have deferred the recognition of the sale are treated as “subject to sales contract” on the Consolidated Balance Sheets. These properties were sold to a related party in order to help facilitate an appropriate debt or organizational restructure and may or may not be transferred back to the seller upon resolution. These properties have mortgages that are secured by the property and many have corporate guarantees. According to the loan documents, the maker is currently in default on these mortgages primarily due to lack of payment and is actively involved in discussions with every lender in order to settle or cure the default situation. We have reviewed each asset and taken impairment to the extent we feel the value of the property was less than our current basis.