7. Other Assets

Other assets, net consisted of the following (in thousands):

	December 31,
	2012		2011
Property and equipment, net	$	2,529	$	2,318
Land held for development	188		188
Intangibles, net	7,877		8,476
Interest rate cap derivative agreements	48		386
Cash trap receivables	8,208		—
Notes receivable	—		394
Other receivables	4,130		4,931
Other	2,922		3,347
	$	25,902	$	20,040

As of December 31, 2012 and 2011, property and equipment, net consisted of the following (in thousands):

	2012			2011
Cost basis	$	10,153		$	9,380
Accumulated depreciation	(7,624		)	(7,062		)
Property and equipment, net	$	2,529		$	2,318

Due to the purchase of the outside 50.0% equity interest in its BuyEfficient joint venture (see Footnote 5), the Company’s other assets, net as of December 31, 2012 and 2011, include BuyEfficient’s intangible assets totaling $7.9 million and $8.5 million, respectively, net of accumulated amortization related to certain trademarks, customer and supplier relationships and intellectual property related to internally developed software. These intangibles are amortized using the straight-line method over the remaining useful lives, which range from between approximately five and 18 years as of December 31, 2012. Accumulated amortization totaled $1.2 million and $0.6 million at December 31, 2012 and 2011, respectively. Amortization expense totaled $0.6 million for both of the years ended December 31, 2012 and 2011, and will total $0.6 million for each of the next five years.

In conjunction with the Company’s 2012 sales of the Marriott Del Mar, the Hilton Del Mar and the Marriott Troy, the mortgages secured by these hotels were assumed by the buyers of the hotels. These mortgages contain “cash trap” provisions that were triggered in prior years due to the decline in the performance of the three hotels. Once triggered, substantially all of the excess cash flow from operations generated by the three hotels was deposited directly into lockbox accounts and then swept into cash management accounts for the benefit of the lenders. Cash was distributed to the Company only after certain items were paid, including deposits into leasing and maintenance reserve accounts and the payment of debt service, insurance, taxes, operating expenses, and extraordinary capital expenditures and leasing expenses. As of December 31, 2012, a total of $8.2 million of the Company’s cash was held by the lenders of these three hotels. The cash will be returned to the Company once the lenders release the cash to the buyers, which is expected to occur within the near term.

In April 2010, the Company paid $250,000 to purchase one-half of a $5.0 million 8.075% subordinate note maturing in November 2010 secured by the 101-room boutique hotel known as Twelve Atlantic Station in Atlanta, Georgia. In November 2010, the Company purchased the remaining half of the Twelve Atlantic Station subordinate note for an additional $250,000. In November 2010, the subordinate note was modified to provide for monthly interest only payments of 3.5%, with the remaining interest due at maturity, and the maturity date was extended to November 2012. As the subordinate note was in default, the borrower was required to bring the subordinate note current. Since the purchase date in April 2010, the Company has accounted for the subordinate note using the cost recovery method as the Company did not consider the expected cash flows from the loan to be reasonably probable and estimable. The Company received $0.2 million and $0.1 million during the years ended December 31, 2012 and 2011, respectively, which were applied to the subordinate note’s principal balance in accordance with the cost recovery method. As of December 31, 2012, the subordinate note was again in default, and the Company recorded a reserve for the remaining $0.2 million balance to bad debt expense, which is classified in corporate overhead on the Company’s consolidated statements of operations and comprehensive income. The Company is currently working with the borrower and the special servicer to bring the note current, at which time the Company may reverse the bad debt expense recorded in 2012.