Debt Obligations

6 Months Ended

Jun. 30, 2013

6. Debt Obligations

Certain real estate assets are subject to mortgage liens. During the three months ended June 30, 2013, the Company assumed a fully-amortizing, first mortgage loan of $26,322, encumbered by an auto auction facility located in the Dallas, Texas MSA that was acquired by the Company in June 2013. The acquired property is 100% leased and the assumed mortgage loan is co-terminus with the lease agreement. In addition, during the three months ended June 30, 2013, the Company obtained a $14,500first mortgage loan secured by two previously acquired real estate properties and acquired one property with a $4,990 zero-coupon mortgage note payable to the property seller. The following is a summary of mortgage notes payable as of June 30, 2013:

	Encumbered Properties		Balance		Interest Rate	Maturity Date
Fixed-rate mortgages		4	$	45,737	0.00% to 6.95%	June 2014 to June 2029
Variable-rate mortgages		-		-	n/a	n/a
Total mortgage notes payable		4		45,737
Above/below market interest				2,977
Balance at June 30, 2013		4	$	48,714

As of June 30, 2013, four of the Company’s real estate investments were encumbered with mortgage loans with a cumulative outstanding balance of $45,737. Combined aggregate principal maturities of the Company's mortgage loans as of June 30, 2013 are as follows:

	Interest Payments		Principal Payments		Total
July 1 to December 31, 2013	$	993	$	525	$	1,518
2014		2,234		6,247		8,481
2015		2,155		1,335		3,490
2016		2,071		1,420		3,491
2017		1,981		1,509		3,490
Thereafter		10,033		34,701		44,734
Above / Below Market Interest		-		2,977		2,977
Total	$	19,467	$	48,714	$	68,181

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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