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NOTES AND INTEREST PAYABLE

3 Months Ended

Mar. 31, 2014

NOTE 5. NOTES AND INTEREST PAYABLE

The following table lists the mortgage notes payable as of March 31, 2014 (dollars in thousands):

Lender	Maturity	Principal Balance
Realty Advisors, Inc *	12/30/16	$	12,353
Propel Financial Services	06/01/20		4
Accrued interest			-

		$	12,357

*On December 31, 2013, Realty Advisors, Inc. (“RAI”), a related party, obtained a $20 million mortgage on the Company’s behalf, secured by Mercer/Travelers land owned by the Company and 100.05 acres of land owned by its parent TCI. The Company and TCI have executed a promissory note to RAI for the same terms as the First NBC loan with a maturity of December 30, 2016, and a variable interest rate of prime plus 1.5% with an interest rate floor of 6%. Based on the land valuation, $12.4 million is allocated to IOT and $7.6 million of the loan is allocated to TCI.

There is a property tax loan in the amount of $4,045 that accrues interest at 12.50% and matures on June 1, 2020.