NOTE 5 - MORTGAGE NOTES PAYABLE

The following is a summary of mortgage notes payable (in thousands, except percentages):



Property	Balance at September 30, 2014		Balance at December 31, 2013		Maturity Date	Annual Interest Rate	Average Monthly Debt Service
Memorial Towers	$	7,240	$	7,313	1/1/2017	5.49%	$	42	⁽¹⁾
Villas	10,565		10,673		1/1/2017	5.48%	$	61	⁽¹⁾
Coach Lantern	7,884		7,884		2/1/2015	4.92%	$	33	⁽²⁾
Foxcroft	8,760		8,760		2/1/2015	4.92%	$	36	⁽²⁾
Park Hill	10,212		10,324		3/1/2018	5.05%	$	56	⁽³⁾
Total	$	44,661	$	44,954

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(1)	Interest only was payable through January 1, 2013; thereafter through the maturity date, monthly payment includes principal and interest.


(2)	Interest only is payable through the maturity date. The partnership plans to exercise the option to extend the maturity date for an additional one year to February 1, 2016, but has not yet done so.


(3)	Interest only was payable through March 1, 2013; thereafter through the maturity date, monthly payment includes principal and interest.

Annual principal payments on the mortgage notes payable for each of the next four years ending September 30, are as follows (in thousands):



2015	$	17,055
2016	430
2017	17,458
2018	9,718
	$	44,661

The mortgage notes payable are with recourse only to the Properties securing them subject to certain limited standard exceptions, as defined in the mortgage notes, which the GP has guaranteed with respect to each property. These exceptions are referred to as “carveouts”. In general, carveouts relate to damages suffered by the lender for a subsidiary’s failure to pay rents, insurance or condemnation proceeds to the lender, to pay water, sewer and other public assessments or charges, to pay environmental compliance costs or to deliver books and records, in each case as required in the loan documents. The exceptions also require the GP to guarantee payment of audit costs, lender’s enforcement of its rights under the loan documents and payment of the loan if the subsidiary voluntarily files for bankruptcy or seeks reorganization, or if a related party of the subsidiary does so with respect to the subsidiary.