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NOTES PAYABLE
 9 Months Ended
Sep. 30, 2016
Debt Disclosure [Abstract]  
NOTES PAYABLE

NOTE 5. NOTES PAYABLE

 

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

 

   Notes Payable   Accrued Interest   Total Debt 
Apartments  $549,744   $1,530   $551,274 
Commercial   109,139    499    109,638 
Land   40,840    116    40,956 
Real estate held for sale   376    —    376 
Real estate subject to sales contract   5,345    470    5,815 
Mezzanine and Medley financing   121,400    (66)   121,334 
Other   24,124    —    24,124 
Total  $850,968   $2,549   $853,517 
                
Unamortized deferred borrowing costs   (19,537)   —    (19,537)
Total  $831,431   $2,549   $833,980 

 

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 nine months ended September 30, 2016, we refinanced or modified two loans with a total principal balance of $67.9 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.

 

The Company secured a new mezzanine loan during the third quarter of 2016 for a total principal balance of $15.0 million.

 

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 $16.5 million in construction loans during the nine months ended September 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.