As of March 31, 2018 and December 31, 2017, the Company’s mortgage notes payable consisted of the following:

	March 31, 2018						December 31, 2017
Collateral	Principal Amount		Deferred Loan Costs, Net		Net Balance		Principal Amount		Deferred Loan Costs, Net		Net Balance		Contractual Interest Rate (1)			Effective Interest Rate (1)			Loan Maturity
Accredo/Walgreen properties	$	7,100,098	$	(115,763)	$	6,984,335	$	7,133,966	$	(124,763)	$	7,009,203		3.95	%		3.95	%	7/1/2021
Dana property		4,690,114		(119,136)		4,570,978		4,709,889		(125,132)		4,584,757		4.56	%		4.56	%	4/1/2023
Six Dollar General properties		3,930,530		(145,156)		3,785,374		3,951,846		(153,290)		3,798,556		4.69	%		4.69	%	4/1/2022
Wyndham property (2)		5,896,200		(107,016)		5,789,184		5,920,800		(109,936)		5,810,864		One-month LIBOR+2.05	%		4.34	%	6/5/2027
Williams Sonoma property (2)		4,678,800		(81,992)		4,596,808		4,699,200		(85,227)		4,613,973		One-month LIBOR+2.05	%		4.05	%	6/5/2022
Omnicare property		4,404,812		(164,264)		4,240,548		4,423,574		(169,372)		4,254,202		4.36	%		4.36	%	5/1/2026
Harley property		6,954,071		(193,235)		6,760,836		6,983,418		(200,811)		6,782,607		4.25	%		4.25	%	9/1/2024
Northrop Grumman property		5,911,255		(200,404)		5,710,851		5,945,655		(217,584)		5,728,071		4.40	%		4.40	%	3/2/2021
EMCOR property		2,946,563		(80,713)		2,865,850		2,955,000		(83,743)		2,871,257		4.35	%		4.35	%	12/1/2024
exp US Services property		3,490,143		(137,093)		3,353,050		3,505,061		(140,382)		3,364,679		Initial 4.25%; 3.25% + T-Bill index starting 11/18/2022			4.25	%	11/17/2024
Husqvarna property		6,380,000		(205,462)		6,174,538		—		—		—		4.60% for 1st 5-years; greater of 4.60% or 5-yr. Treasury Constant Maturity + 2.5 % for the 2^nd 5-years			4.60%		2/20/2028
AvAir property (3)		14,575,000		(355,710)		14,219,290		12,000,000		(330,866)		11,669,134		4.84% for 1st 5-years; greater of 4.60% or 5-yr. Treasury Constant Maturity + 2.5 % for the 2^nd 5-years			4.84%		3/27/2028
3M property		8,360,000		(145,571)		8,214,429		—		—		—		One-month LIBOR+2.25	%		4.13	%	3/29/2023
	$	79,317,586	$	(2,051,515)	$	77,266,071	$	62,228,409	$	(1,741,106)	$	60,487,303

(1)

Contractual interest rate represents the interest rate in effect under the mortgage note payable as of March 31, 2018. Effective interest rate is calculated as the actual interest rate in effect as of March 31, 2018 (consisting of the contractual interest rate and the effect of the interest rate swap, if applicable). For further information regarding the Company’s derivative instruments (see Note 7).

(2)

The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The loans are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the loans is an event of default under the terms of both loans. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the loans so that the loan to value ratio is no more than 60%.

(3)

On March 27, 2018, the Company refinanced the mortgage loan for $14,575,000 through a nonaffiliated lender with interest rate based on: 4.84% for the first five years and the greater of 4.60% or 5-Year Treasury Constant Maturity plus 2.5 % for the second five years. The loan is secured by the AvAir property and it matures on March 27, 2028.