Notes Payable (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Notes Payable on Consolidated Properties

The following table sets forth our notes payable on our consolidated properties at December 31, 2016 and 2015 ($ in thousands):

	Notes Payable as of
Description	December 31, 2016			December 31, 2015			Interest Rate	Maturity Date
Northborough Tower(1)	$	—		$	18,516		8.67%(1)	1/11/2016
Royal Island(2)	14,489			13,872			15%	11/30/2016
Northpoint Central(3)	10,602			11,720			5.15%	5/9/2017
Chase Park Plaza Hotel and Chase—The Private Residences	60,888			62,182			4.95%	8/11/2017
BHFS II, LLC	6,733			6,856			30-day LIBOR + 3%(4)	2/1/2018
BHFS III, LLC	6,044			6,154			30-day LIBOR + 3%(4)	2/1/2018
BHFS IV, LLC	12,555			12,783			30-day LIBOR + 3%(4)	2/1/2018
BHFS Theatre, LLC	4,699			4,785			30-day LIBOR + 3%(4)	2/1/2018
The Ablon at Frisco Square	26,300			18,679			30-day LIBOR + 2.5%(4)	8/26/2017
Total debt	142,310			155,547
Deferred financing fees(5)	(428		)	(1,087		)
Notes payable, net of deferred financing fees	141,882			154,460
Notes payable included with Obligations related to real estate held for sale:
Las Colinas Commons debt(3)	—			14,900			5.15%	5/9/2017
Deferred financing fees(5)	—			(69		)
Notes payable included with Obligations related to real estate held for sale, net of deferred financing fees:	—			14,831
Total notes payable obligations	$	141,882		$	169,291

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(1) Due to the maturity default on our Northborough Tower debt, the stated interest rate of 5.67% was increased to the default interest rate of 8.67% effective January 12, 2016. The property was transferred to the lender via a deed-in-lieu of foreclosure on May 9, 2016.

(2) In April 2016, the lender increased the amount available to draw on the loan to $14.5 million. We received a short term extension of the loan secured by Royal Island, extending our maturity date from November 10, 2016 to November 30, 2016. The lender has not further extended the maturity date. On March 16, 2017 we signed a purchase and sale agreement to sell the asset to the lender.

(3) Las Colinas Commons and Northpoint Central are both borrowers under a loan that matures in May 2017. The Las Colinas Commons loan balance at December 31, 2015 was $11.3 million. Under the terms of the loan, the lender required a release price payment of $14.9 million to release the Las Colinas Commons property from the loan. The $3.6 million excess principal payment amount was used to reduce Northpoint Central’s allocated loan balance. We reclassified the full release price as a liability associated with our real estate held for sale as of December 31, 2015.

(4) 30-day LIBOR was 0.77% at December 31, 2016.

(5) Effective January 1, 2016, we adopted ASU 2015-03, which requires companies to present debt issuance costs related to a recognized debt liability as a direct reduction from the carrying amount of the related debt liability. See Note 2, Summary of Significant Accounting Policies, under the caption Deferred Financing Fees for further details.

Aggregate Contractual Obligations for Principal Payments

The following table summarizes our aggregate contractual obligations for principal payments as of December 31, 2016 (in thousands):

Principal Payments Due:	Amount
2017	$	112,854
2018	29,456
2019	—
2020	—
2021	—
Thereafter	—
Total contractual obligations	142,310
Less: Deferred financing fees, net	(428		)
Notes payable, net	$	141,882

We are subject to customary affirmative, negative, and financial covenants and representations, warranties, and borrowing

conditions, all as set forth in our loan agreements, including, among other things, maintaining minimum debt service coverage

ratios, loan to value ratios and liquidity. As of December 31, 2016, we believe we were in compliance with the covenants under

our loan agreements.