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NOTES PAYABLE
 6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
NOTES PAYABLE

NOTE 5. NOTES PAYABLE

 

Below is a summary of our notes and interest payable as of June 30, 2016 (dollars in thousands):

 

   Notes Payable   Accrued
Interest		   Total Debt 
Apartments  $546,718   $1,503   $548,221 
Commercial   109,423    501    109,924 
Land   41,896    117    42,013 
Real estate held for sale   376    —    376 
Real estate subject to sales contract   5,602    470    6,072 
Mezzanine and Medley financing   121,900    (401)   121,499 
Other   17,741    572    18,313 
Total  $843,656   $2,762   $846,418 
                
Unamortized deferred borrowing costs   (19,049)   —    (19,049)
Total  $824,607   $2,762   $827,369 

 

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 transactions provided for lower monthly payments over the term of the loans due to lower interest rates and the extension of maturity dates of the 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 loan agreement or subsequent modification.

 

In conjunction with the development of various apartment projects and other developments, we drew down $11.4 million in construction loans during the six months ended June 30, 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.