9. Notes Payable

The following table sets forth information on our notes payable as of December 31, 2017 and 2016:

			Amount Due		Loan Amount Outstanding
Description	Interest Rate	Maturity Date	at Maturity		December 31, 2017		December 31, 2016
Courtyard Kauai Coconut Beach Hotel	Repaid in full on 5/8/2017 (See note below)		$	-	$	-	$	38,000
Gardens Medical Pavilion	4.90%	1/1/2018		-		-		12,899
River Club and the Townhomes at River Club	5.26%	5/1/2018		23,368		23,511		23,917
Lakes of Margate	5.49% and 5.92%	1/1/2020		13,384		13,973		14,243
Arbors Harbor Town	3.99%	1/1/2019		23,632		24,153		24,653
22 Exchange	3.93%	Due on demand		16,875		18,963		19,307
Parkside⁽¹⁾	5%	6/1/2018		9,560		9,721		10,100
Total mortgages payable			$	86,819		90,321		143,119
Less: deferred financing costs						(400)		(787)
Total mortgages payable, net					$	89,921	$	142,332

(1)

Includes approximately $0.1 million of unamortized premium related to debt we assumed at acquisition

As of December 31, 2017, our notes payable balance had a weighted-average interest rate of 4.97%. For loans in place as of December 31, 2017, we have guaranteed payment of certain recourse liabilities with respect to certain customary nonrecourse carveouts as set forth in the guaranties in favor of the unaffiliated lenders with respect to the 22 Exchange and Parkside notes payable.

Debt Transactions

Our debt secured by Courtyard Kauai Coconut Beach Hotel, with an outstanding balance of $38.0 million as of December 31, 2016, was scheduled to mature on May 9, 2017. On May 8, 2017, we, through our 80% ownership interest in a joint venture between our indirect wholly owned subsidiary and JMI Realty, LLC, an unaffiliated third party (the “Kauai Joint Venture”), entered into a new mortgage facility of up to $44.0 million (the “Courtyard Kauai Loan”) with TH Commercial Investment Corp. Initial borrowings of $36.0 million were advanced under the Courtyard Kauai Loan and those funds plus additional cash were used to repay the then outstanding balance under the previous loan with Wells Fargo Bank. The Courtyard Kauai Loan bore interest at 30-day LIBOR plus 4.7% and was scheduled to mature in three years with two one-year extensions available. We had also guaranteed payment of certain recourse liabilities with respect to certain customary nonrecourse carve-outs as set forth in the guaranties in favor of the lender.

On August 15, 2017, the Courtyard Kauai Loan was assumed by the unrelated third-party buyer in connection with the sale of the Courtyard Kauai Coconut Beach Hotel. The outstanding balance as of the date of sale was $36.0 million. On December 27, 2017, we used cash on hand to pay off in full the existing indebtedness of approximately $12.5 million on the Gardens Medical Pavilion, which was scheduled to mature on January 1, 2018.

On August 16, 2016, we sold Lakewood Flats to an unaffiliated third party and used a portion of the proceeds from the sale to fully satisfy the existing indebtedness of approximately $33.5 million.

Debt Compliance

Our loan agreements stipulate that we comply with certain reporting and financial covenants. These covenants include, among other things, maintaining minimum debt service coverage ratios, loan to value ratios, and liquidity. We are currently in compliance with all of our debt covenants other than the debt associated with 22 Exchange (outstanding balance of approximately $19.0 million as of December 31, 2017) as discussed below.

We did not meet the debt service coverage requirements for our 22 Exchange loan as of March 31, 2017, June 30, 2017, September 30, 2017 and December 31, 2017. As a result, the lender elected to sweep the cash from operations beginning in January 2018. Additionally, the cash from operations was not sufficient to fully pay the scheduled monthly debt service due on January 5, 2018, which constituted an event of default and therefore, the 22 Exchange loan which was scheduled to mature in May 2023 is now due on demand. We received notice on January 9, 2018 that the 22 Exchange loan had been transferred to a special servicer effective immediately. Subsequently, the special servicer placed the property in receivership and commenced foreclosure proceedings. However, we believe the loss of cash flow from 22 Exchange or the loss of the property will not have a material impact on our results of operations or financial conditions.

Debt Maturities

The following table provides information with respect to the contractual maturities and scheduled principal repayments of our indebtedness as of December 31, 2017. The table amounts reflect the 22 Exchange loan as due on demand. However, the table amounts do not reflect the effect of any available extension options:

Year	Amount Due
2018	$	52,932
2019		23,934
2020		13,384
2021		-
2022		-
Thereafter		-
Total contractual obligations for principal payments		90,250
Unamortized premium		71
Total notes payable		90,321
Less: Deferred financing fees, net		(400)
Notes payable, net	$	89,921

In addition to the 22 Exchange loan, as of December 31, 2017, the Company had debt of approximately $23.5 million associated with the River Club and the Townhomes at River Club, and $9.7 million associated with Parkside maturing in the next twelve months. If we do not dispose of the River Club and the Townhomes at River Club or Parkside by their maturity dates, we expect to repay these outstanding balances with available cash or refinance all or a portion of the balances outstanding.