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Mortgage Notes Payable | 12 Months Ended
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Dec. 31, 2011
Notes Payable [Abstract] |
Mortgage Notes Payable Disclosure [Text Block] |
5. MORTGAGE NOTES PAYABLE |  |  |  |  |
Mortgage notes payable as of December 31, 2011 and December 31, 2010 consisted of the following:
| December 31, |  | December 31,
| 2011 |  | 2010
Mortgage note payable in monthly installments of $24,330 |  |  |  |  |
through July 1, 2016, including interest at a fixed rate of 6.51%, |  |  |  |  |
collateralized by the Havana/Parker Complex property. | $ | 3,242,767 |  | $ | 3,323,714
Mortgage note payable in monthly installments of $71,412 through April 5, |  |  |  |  |
2014, including interest at a fixed rate of 6.08%; collateralized by the leases |  |  |  |  |
and office buildings of the Garden Gateway Plaza property. Certain |  |  |  |  |
obligations under the note are guaranteed by the executive officers. |  | 9,533,849 |  |  | 9,823,854
Mortgage note payable in monthly installments of $27,088 through February |  |  |  |  |
1, 2012, including interest at a fixed rate of 5.31%; collateralized by the |  |  |  |  |
World Plaza property. |  | - |  |  | 3,231,661
Mortgage note payable in monthly installments of $25,995 through September |  |  |  |  |
1, 2015, including interest at a fixed rate of 6.5%; collateralized by the |  |  |  |  |
Waterman Plaza property. |  | 3,621,057 |  |  | 3,700,953
Mortgage note payable in monthly installments of $28,842 through March 1, |  |  |  |  |
2034, including interest at a variable rate ranging from 5.5% to 10.5%; |  |  |  |  |
with a current rate of 5.5% collateralized by the |  |  |  |  |
Sparky’s Thousand Palms Self-Storage property. |  | 4,431,783 |  |  | 4,539,478
Mortgage note payable in monthly installments of $9,432 through December |  |  |  |  |
18, 2016, including interest at a fixed rate of 5.00%; collateralized by the |  |  |  |  |
Sparky’s Hesperia East Self-Storage property. |  | 1,690,301 |  |  | 1,717,059
Mortgage note payable in monthly installments of $17,226 through May 3, 2015, |  |  |  |  |
including interest at a fixed rate of 5.00%; monthly installments of $19,323 from |  |  |  |  |
June 3, 2012, including interest at 6.25% to maturity, collateralized |  |  |  |  |
by the Sparky’s Rialto Self-Storage property. |  | 2,820,793 |  |  | 2,887,597
Mortgage note payable in monthly installments of $28,219 through September 1, |  |  |  |  |
2015, including interest at a fixed rate of 4.65%; collateralized |  |  |  |  |
by the Genesis Plaza property. |  | 4,854,307 |  |  | 4,973,365
Mortgage note payable in monthly installments of $6,638 through July 1, |  |  |  |  |
2018, including interest at a fixed rate of 5.80%; collateralized |  |  |  |  |
by the Casa Grande Apartment property (1). |  | 1,040,762 |  |  | -
Mortgage note payable in monthly installments of $26,962 through July 1, |  |  |  |  |
2025, including interest at a fixed rate of 5.79% through July 1, 2018; |  |  |  |  |
collateralized by the Executive Office Park property. |  | 4,572,161 |  |  | -
Mortgage note payable in monthly installments sufficient to amortize the note |  |  |  |  |
on a 25 year schedule and the current month interest charge (currently, |  |  |  |  |
approximately $36,200), interest at a variable rate of 3.0% over the one month |  |  |  |  |
libor with a floor of 5.75% and a ceiling of 9.75% through May 31, 2016; |  |  |  |  |
collateralized by the Dakota Bank Building property. |  | 5,640,568 |  |  | -
Mortgage note payable in monthly installments of $23,919 through April 11, |  |  |  |  |
2015, including interest at a fixed rate of 5.62%; collateralized |  |  |  |  |
by the Yucca Valley Retail Center. |  | 3,304,120 |  |  | -
Mortgage note payable in monthly installments of $9,858 through January 1, |  |  |  |  |
2019, including interest at a fixed rate of 4.95%; collateralized |  |  |  |  |
by the Rangewood Medical Office Building. |  | 1,150,000 |  |  |
Mortgage note payable in monthly installments of $7,562 through January 1, |  |  |  |  |
2019, including interest at a fixed rate of 4.95%; collateralized |  |  |  |  |
by Regatta Square. |  | 1,300,000 |  |  |
Mortgage note payable in monthly installments of $82,627 through June 20, |  |  |  |  |
2013, including interest at a variable rate of 1% over a published prime rate |  |  |  |  |
with a floor of 6% (the current rate); collateralized by the Port of San |  |  |  |  |
Diego Complex. |  | 9,500,000 |  |  |
Subtotal, NetREIT, Inc. properties |  | 56,702,468 |  |  | 34,197,681
Mortgage notes payable in monthly installments of $24,137 through February 10, |  |  |  |  |
2012, including interest at a fixed rate of 5.50%; |  |  |  |  |
collateralized by 10 model home properties. |  | 2,088,868 |  |  | 2,937,316
Mortgage notes payable in monthly installments of $20,153 through September |  |  |  |  |
18, 2012, including interest at a fixed rate of 6.50%; |  |  |  |  |
collateralized by 4 model home properties. |  | - |  |  | 1,873,193
Mortgage notes payable in monthly installments of $3,767 through September |  |  |  |  |
15, 2012, including interest at a fixed rate of 5.75%; |  |  |  |  |
collateralized by 4 model home properties. |  | 428,203 |  |  | 447,822
Mortgage notes payable in monthly installments of $19,792 through December |  |  |  |  |
15, 2015, including interest at a fixed rate of 5.75%; |  |  |  |  |
collateralized by 22 model home properties. |  | 2,205,798 |  |  | 2,374,881
Mortgage notes payable in monthly installments of $4,308 maturity date of |  |  |  |  |
October 5, 2011, including interest at a fixed rate of 2.38%; |  |  |  |  |
collateralized by 1 model home property. (2) |  | 420,830 |  |  | 2,583,323
Mortgage notes payable in monthly installments of $6,984 maturities varying |  |  |  |  |
from October 5, 2011 to March 5, 2012, including interest at fixed |  |  |  |  |
rates from 2.38%, to 2.55%; collateralized by 3 model home properties. (2) |  | 670,207 |  |  | 1,994,260
Mortgage notes payable in monthly installments of $1,798 with a |  |  |  |  |
of December 5, 2011, including interest at 7.16% collateralized by |  |  |  |  |
1 model home properties. (2) |  | 89,811 |  |  | 2,836,311
Mortgage notes payable in monthly installments of $23,686 maturities varying |  |  |  |  |
from February 15, 2016 to August 15, 2016, including interest at |  |  |  |  |
fixed rates from 5.75%, to 6.30%; collateralized by 23 model home properties. |  | 2,747,709 |  |  | -
Mortgage notes payable in monthly installments of $6,091 maturities varying |  |  |  |  |
from June 30, 2012 to December 15, 2016, including interest at |  |  |  |  |
fixed rates from 5.50%, to 7.13%; collateralized by 3 model home properties. |  | 575,903 |  |  |
Subtotal, model home properties |  | 9,227,329 |  |  | 15,047,106
| $ | 65,929,797 |  | $ | 49,244,787
The Company established a separate purpose entity to be the legal borrower under this real estate note and mortgage and security agreement. NetREIT has guaranteed this note with full recourse liability under the loan. The Company is working with the lender to extend the maturity dates of these loans. The Company anticipates that the lender will extend the due date of these loans until such time as the model home(s) securing them are sold. As of December 31, 2011, The Company is in compliance with all conditions and covenants of its mortgage notes payable. As of December 31, 2011 and 2010, the recorded value and fair market value of notes payable are approximately equal. Scheduled principal payments of mortgage notes payable as of December 31, 2011 are as follows:
|  |  |  |  |  | Model Home |  |  |
|  |  | NetREIT, Inc. |  |  | Properties |  |  | Scheduled
|  |  | Principal |  |  | Principal |  |  | Principal
Years Ending: |  |  | Payments |  |  | Payments |  |  | Payments
2012 |  | $ | 1,520,015 |  | $ | 3,862,129 |  | $ | 5,382,144
2013 |  |  | 10,267,873 |  |  | 267,281 |  |  | 10,535,154
2014 |  |  | 9,883,150 |  |  | 282,816 |  |  | 10,165,966
2015 |  |  | 14,072,638 |  |  | 2,418,451 |  |  | 16,491,089
2016 |  |  | 9,987,400 |  |  | 2,396,652 |  |  | 12,384,052
Thereafter |  |  | 10,971,392 |  |  | - |  |  | 10,971,392
Total |  | $ | 56,702,468 |  | $ | 9,227,329 |  | $ | 65,929,797

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