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Mortgage Notes Payable | 12 Months Ended
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Dec. 31, 2014
Mortgage Notes Payable [Abstract] |
Mortgage Notes Payable |
6. MORTGAGE NOTES PAYABLE |  |
Mortgage notes payable consisted of the following at December 31, 2014 and 2013: |  |  |  |
|  |  |  | Principal as of December 31, |  | Loan |  | Interest |  |
Mortgage note property |  | Notes |  | 2014 |  | 2013 |  | Type |  | Rate (1) |  | Maturity
Havana Parker property |  |  | $2,500,000 |  | $3,098,780 |  | Fixed |  | 6.51% |  | 7/1/16
Garden Gateway Plaza |  |  | 6,963,381 |  | 7,119,544 |  | Fixed |  | 5.00% |  | 4/5/20
Waterman property |  |  | 3,368,146 |  | 3,457,973 |  | Fixed |  | 6.50% |  | 9/1/15
Sparky’s Thousand Palms | (2) |  | 4,092,100 |  | 4,215,349 |  | Variable |  | 5.50% |  | 3/1/34
Sparky's Hesperia East | (3) |  | 830,883 |  | 890,774 |  | Variable |  | 4.75% |  | 12/18/22
Sparky's Rialto | (4) |  | 2,119,037 |  | 2,166,791 |  | Fixed (reset) |  | 4.75% |  | 5/3/18
Genesis Plaza |  |  | 4,491,588 |  | 4,618,147 |  | Fixed |  | 4.65% |  | 9/1/15
Executive Office Park | (5) |  | 4,379,854 |  | 4,447,699 |  | Fixed (reset) |  | 5.80% |  | 7/1/25
Dakota Bank Building |  | 10,993,386 |  | 5,417,950 |  | Fixed |  | 4.74% |  | 7/6/24
Yucca Valley Retail Center |  | 2,982,411 |  | 3,095,974 |  | Fixed |  | 5.62% |  | 4/11/15
Rangewood Medical Office Building |  |  | 1,092,778 |  | 1,155,305 |  | Fixed |  | 4.95% |  | 1/1/19
Regatta Square property |  |  | 1,214,799 |  | 1,244,615 |  | Fixed |  | 4.95% |  | 1/1/19
Port of San Diego Complex |  |  | 10,368,228 |  | 10,608,385 |  | Fixed |  | 4.75% |  | 3/5/20
Morena Office Center | (6) |  | 2,351,805 |  | 2,411,282 |  | Fixed (reset) |  | 4.50% |  | 1/1/21
Pacific Oaks Plaza | (6) |  | 1,599,204 |  | 1,639,658 |  | Fixed (reset) |  | 4.50% |  | 6/1/21
Shoreline Medical Office Building | (6) |  | 3,846,697 |  | 3,959,914 |  | Fixed (reset) |  | 5.10% |  | 6/1/22
Sparky's Palm, Joshua and Sunrise |  |  | 7,986,522 |  | 8,116,028 |  | Fixed |  | 4.70% |  | 12/6/22
The Presidio |  |  | 6,000,000 |  | 5,492,375 |  | Fixed |  | 4.54% |  | 12/1/24
Sparky's Lancaster |  |  | 1,903,982 |  | 1,965,504 |  | Fixed |  | 5.00% |  | 6/1/20
Fontana Medical Plaza |  |  | - |  | 1,990,880 |  | Fixed |  | 4.75% |  | 8/28/19
Bismarck Office Building |  |  | 3,321,198 |  | - |  | Fixed |  | 6.12% |  | 10/1/16
Union Terrace Building |  |  | 6,600,000 |  | - |  | Fixed |  | 4.50% |  | 9/5/24
Centennial Tech Center |  |  | 10,250,000 |  | - |  | Fixed |  | 4.34% |  | 12/5/24
Arapahoe Service Center |  |  | 8,500,000 |  | - |  | Fixed |  | 4.34% |  | 1/5/25
Union Town Center |  |  | 8,440,000 |  | - |  | Fixed |  | 4.28% |  | 1/5/25
Subtotal, NetREIT, Inc. properties |  |  | 116,195,999 |  | 77,112,927 |  |  |  |  |  |
Model Home mortgage notes | (7) |  | 7,703,299 |  | 12,438,797 |  | Fixed |  | (7) |  | 2015-19
Mortgage Notes Payable, total |  |  | $123,899,298 |  | $89,551,724 |  |  |  |  |  |
(1) | Interest rates as of December 31, 2014
(2) | Interest at variable rate ranging from 5.50%-10.50%.
(3) | Interest at a variable rate indexed to the 5 year interest rate swap .
(4) | Interest subject to reset; thereafter, monthly payments of $11,982, including interest at rate indexed to 5-year Treasury Rate + 3%
(5) | Interest rate is subject to reset on July 1, 2018.
(6) | Interest rate subject to resetting on the 3rd and 6th loan anniversary.
(7) | Each Model Home has a standalone mortgage note at interest rates ranging from 4.9% to 5.8% (at December 31, 2014).
The Company is in compliance with all conditions and covenants of its mortgage notes payable. Scheduled principal payments of mortgage notes payable are as follows:
|  |  |  |  |  | Model Home |  |  |
|  |  | NetREIT, Inc. |  |  | Properties |  |  | Scheduled
|  |  | Principal |  |  | Principal |  |  | Principal
Years Ending December 31: |  |  | Payments |  |  | Payments |  |  | Payments
2015 |  | $ | 12,383,176 |  |  | 410,603 |  |  | 12,793,779
2016 |  |  | 7,085,079 |  |  | 1,122,737 |  |  | 8,207,816
2017 |  |  | 1,501,774 |  |  | 2,210,768 |  |  | 3,712,542
2018 |  |  | 5,641,001 |  |  | 1,546,748 |  |  | 7,187,749
2019 |  |  | 2,413,466 |  |  | 2,412,442 |  |  | 4,825,908
Thereafter |  |  | 87,171,504 |  |  | - |  |  | 87,171,504
Total |  | $ | 116,196,000 |  | $ | 7,703,298 |  | $ | 123,899,298
I n December 2014, the Company and the lender for the Havana Parker Complex entered into to a loan modification agreement pursuant to which the lender agreed to reduce the outstanding loan balance on the property by $537,000 (from $3,037,000 to $2,500,000) and also agreed to defer a portion of the monthly interest on the loan until loan maturity. Under the modified agreement, interest only payments (at 2.5%) are due through in July 1, 2016, at which time all principal and the deferred interest are due. The Company has the option to defer maturity for one additional year in exchange for making a one-time payment of $100,000 (which will be applied to outstanding principal).

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