Mortgages and Other Notes Payable

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Mortgages and Other Notes Payable

Mortgages and Other Notes Payable

The following table summarizes our mortgages and other notes payable as of March 31, 2022 and December 31, 2021:

	Carrying value
Property / Entity	March 31, 2022		December 31, 2021		Effective Interest Rate		Maturity Date
770 South Post Oak	11,596		11,635		4.40	%	6/1/2025
Athens	1,155		1,155		4.00	%	8/28/2022
Chelsea	7,996		8,037		3.40	%	12/1/2050
EQK Portage - Land	3,350		3,350		10.00	%	11/13/2024
Forest Grove	7,220		7,263		3.75	%	5/5/2024
Landing Bayou	14,345		14,407		3.50	%	9/1/2053
Legacy at Pleasant Grove	13,275		13,352		3.60	%	4/1/2048
New Concept Energy	3,542		3,542		6.00	%	9/30/2022
Parc at Denham Springs Phase II	15,919		15,962		4.10	%	2/1/2060
RCM HC Enterprises	5,086		5,086		9.50	%	12/17/2026
Stanford Center(1)	38,844		38,979		6.00	%	2/26/2023
Sugar Mill Phase III	9,196		9,216		4.50	%	2/1/2060
Toulon(2)	—		13,697		3.20	%	12/1/2051
Villas at Bon Secour	19,496		19,492		3.08	%	9/1/2031
Vista Ridge	9,792		9,830		4.00	%	8/1/2053
Windmill Farms	8,393		8,389		5.00	%	2/28/2023
	$	169,205	$	183,392

(1)     On March 3, 2022, the loan was extended to February 26, 2023.

(2)    On January 14, 2022, the loan was paid off in connection with the sale of the underlying property (See Note 7 - Real Estate Activity).

Interest payable at March 31, 2022 and December 31, 2021, was $1,636 and $1,147, respectively. We capitalized interest of $803 and $858 during the three months ended March 31, 2022 and 2021, respectively.

As of March 31, 2022, we were in compliance with all of our loan covenants except for the minimum debt service coverage ratio (“DSCR”) for the loan on 770 South Post Oak. As a result, the lender may require us to lock the surplus cash flow of the property (“Cash Trap”) into a designated deposit account controlled by them, until we are in compliance with the DSCR for a period of two consecutive quarters.

All of the above mortgages and other notes payable are collateralized by the underlying property. In addition, we have guaranteed the loans on Athens, Forest Grove, Stanford Center and Villas at Bon Secour.

There are various land mortgages, secured by the property, that are in the process of a modification or extension to the original note due to expiration of the loan. We are working with our existing lenders and new lenders to modify, extend the loans before they become due or refinancing the loans with terms that are similar to the existing agreement.