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Mortgage Notes Payable

3 Months Ended

Mar. 31, 2015

Mortgage Notes Payable [Abstract]

Mortgage Notes Payable

7. MORTGAGE NOTES PAYABLE

Mortgage notes payable consisted of the following:
					Principal as of					Loan		Interest
				March 31,			December 31,
Mortgage note property		Notes		2015			2014			Type		Rate (1)		Maturity

Havana/Parker Complex				$	2,500,000		$	2,500,000		Fixed		6.51%		7/1/16
Garden Gateway Plaza					6,923,108			6,963,381		Fixed		5.00%		4/5/20
Waterman Plaza					3,344,766			3,368,146		Fixed		6.50%		9/1/15
Sparky’s Thousand Palms		(2)			4,061,637			4,092,100		Variable		5.50%	*	3/1/34
Sparky's Hesperia East		(3)			825,643			830,883		Variable		4.75%	*	12/18/22
Sparky's Rialto		(4)			2,106,389			2,119,037		Fixed (reset)		4.75%	*	5/3/18
Genesis Plaza					4,459,019			4,491,588		Fixed		4.65%		9/1/15
Executive Office Park		(5)			4,361,410			4,379,854		Fixed (reset)		5.80%		7/1/25
Dakota Bank Buildings					10,950,293			10,993,386		Fixed		4.74%		7/6/24
Yucca Valley Retail Center					6,000,000			2,982,411		Fixed		4.30%		4/11/25
Rangewood Medical Office Building					1,076,476			1,092,778		Fixed		4.95%		1/1/19
Regatta Square					1,206,908			1,214,799		Fixed		4.95%		1/1/19
Port of San Diego Complex					10,306,389			10,368,228		Fixed		4.75%		3/5/20
Morena Office Center		(6)			2,336,155			2,351,805		Fixed (reset)		4.50%		1/1/21
Pacific Oaks Plaza		(6)			1,588,559			1,599,204		Fixed (reset)		4.50%		6/1/21
Shoreline Medical Building		(6)			3,816,816			3,846,697		Fixed (reset)		5.10%		6/1/22
Sparky's Palm, Joshua and Sunrise					7,951,878			7,986,522		Fixed		4.70%	*	12/6/22
The Presidio					6,000,000			6,000,000		Fixed		4.54%		12/1/24
Sparky's Lancaster					1,888,116			1,903,982		Fixed		5.00%	*	6/1/20
Bismarck Office Building					3,303,603			3,321,198		Fixed		6.12%		10/1/16
Union Terrace Building					6,600,000			6,600,000		Fixed		4.50%		9/5/24
Centennial Tech Center					10,250,000			10,250,000		Fixed		4.34%		12/5/24
Arapahoe Service Center					8,500,000			8,500,000		Fixed		4.34%		1/5/25
Union Town Center					8,440,000			8,440,000		Fixed		4.28%		1/5/25

Subtotal, NetREIT, Inc. properties					118,797,165			116,195,999
Model Home mortgage notes					9,581,761			7,703,299		Fixed		(7)		2015-19
Mortgage Notes Payable, total				$	128,378,926		$	123,899,298

(1)	Interest rates as of March 31, 2015
(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 March 31, 2015).

*	Mortgage notes payable, aggregating $16,833,662 were paid off in connection with the sale of the self-storage facilities on
	April 10, 2015. Refer to Note 6.

The Company is in compliance with all conditions and covenants of its mortgage notes payable.

Scheduled principal payments of mortgage notes payable for the years ending December 31 were as follows as of March 31, 2015:

	NetREIT, Inc.			Model Homes			Principal
	Notes Payable			Notes Payable			Payments

Nine months remaining in 2015	$	9,058,278		$	643,724		$	9,702,002
Years ending December 31:
2016		7,347,969			534,865			7,882,834
2017		1,902,235			1,172,647			3,074,882
2018		6,069,489			1,921,589			7,991,078
2019		2,951,652			1,172,173			4,123,825
Thereafter		91,467,540			4,136,765			95,604,305
Total	$	118,797,163		$	9,581,763		$	128,378,926