Real Estate Notes Receivable, Net

3 Months Ended

Mar. 31, 2012

Receivables [Abstract]

Real Estate Notes Receivable, Net

Real Estate Notes Receivable, Net

Real estate notes receivable, net consisted of the following as of March 31, 2012 and December 31, 2011:

	March 31, 2012			December 31, 2011
Total real estate notes receivable(a)	$	61,150,000		$	61,150,000
Add: Notes receivable closing costs, net	296,000			324,000
Less: discount, net	(4,015,000		)	(4,015,000		)
Real estate notes receivable, net	$	57,431,000		$	57,459,000

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(a) The balance consists of two portfolios of mortgage loan receivables secured by medical office buildings. The first portfolio had a balance of $20,000,000 at March 31, 2012 and December 31, 2011, respectively. The interest rates on the four notes in the portfolio range from 10.85% to 10.95% and the weighted average effective interest rate at March 31, 2012 was 14.57% per annum. The notes in the portfolio were to mature on May 1, 2012, but were extended to November 1, 2012 for an extension fee of $50,000. See further discussion at Note 17, Subsequent Events. The second portfolio had a balance of $41,150,000 at March 31, 2012 and December 31, 2011, respectively. The interest rate on the one note in the portfolio was 7.76% and the effective interest rate at March 31, 2012 was 8.5% per annum. The note matures on December 1, 2014.

We monitor the credit quality of our real estate notes receivable portfolios on an ongoing basis by tracking possible credit quality indicators. As of March 31, 2012, all of our real estate notes receivable are current and we have not provided for any allowance for losses on notes receivable, and as of March 31, 2012, we have had no impairment with respect to our notes receivable. We made no significant purchases or sales of notes or other receivables during the three months ended March 31, 2012.