8. Note Receivable from Related Party (eliminated in consolidation)

This represents a note receivable from the participating first mortgage loan to Nantucket Acquisition LLC (“Nantucket”), a Delaware limited liability company owned and managed by Cornerstone Ventures Inc., an affiliate of CRA. We have not recorded interest income on this loan since October of 2010.

For our financial reporting purposes, Nantucket is considered a VIE as we are the primary beneficiary due to our enhanced ability to direct the activities of the VIE. Therefore, we have consolidated the operations since June 30, 2011 and, accordingly, eliminated the note receivable from related party in consolidation (see Note 10). As of October 19, 2011, the Sherburne Commons property met the requirements for reclassification to real estate held for sale. Consequently, the related assets and liabilities of the property are classified as assets of variable interest entity held for sale and liabilities of variable interest entity held for sale, respectively, on our condensed consolidated balance sheets. Operating results for the property have been reclassified to discontinued operations on our condensed consolidated statements of operations for all periods presented.

For the six months ended June 30, 2014 and 2013, the note receivable balance increased by $82,000 and $292,000, respectively, to provide funds to meet Sherburne Commons’ operating shortfalls. The following table reconciles the note receivable from Nantucket from January 1, 2014 to June 30, 2014 and from January 1, 2013 to June 30, 2013:

	2014		2013
Balance at January 1,	$	—	$	—
Additions:
Additions to note receivable from related party		82,000		292,000
Deductions:
Repayments of note receivable from related party		—		—
Elimination of balance in consolidation of VIE		(82,000)		(292,000)

Balance at June 30,	$	—	$	—