Note 7 – Mortgages Payable

The following table summarizes certain information as of March 31, 2015 and December 31, 2014, with respect to the Company’s indebtedness (amounts in thousands).

	Outstanding Principal				As of March 31, 2015
Property	March 31, 2015		December 31, 2014		Interest Rate			Fixed/ Floating	Maturity Date
Springhouse at Newport News	$	22,428	$	22,515		5.66	%	Fixed	January 1, 2020
Enders Place at Baldwin Park⁽¹⁾		25,398		25,475		4.30	%	Fixed	November 1, 2022
MDA Apartments		37,600		37,600		5.35	%	Fixed	January 1, 2023
Village Green of Ann Arbor		42,887		43,078		3.92	%	Fixed	October 1, 2022
Lansbrook Village		43,043		42,357		4.42	%	Blended ⁽²⁾	March 31, 2018
ARIUM Grande Lakes		29,444		29,444		1.84	%	Floating ⁽³⁾	December 1, 2024
Fox Hills		26,705		—		3.57	%	Fixed	April 1, 2022
Park & Kingston		15,250		—		3.21	%	Fixed	April 1, 2020
Total		242,755		200,469
Fair value adjustments		808		874
Total continuing operations		243,563		201,343
North Park Towers - held for sale		11,500		11,500		5.65	%	Fixed	January 6, 2024
Total	$	255,063	$	212,843

⁽¹⁾ The principal includes a $17.4 million loan at a 3.97% interest rate and an $8.0 million supplemental loan at a 5.01% interest rate.

⁽²⁾ The principal balance includes the initial advance of $42.0 million at a fixed rate of 4.45% and an additional advance of $1.0 million that bears interest at a floating rate of one month LIBOR plus 3.00%, as of March 31, 2015, the additional advance had an interest rate of 3.31%.

⁽³⁾ ARIUM Grande Lakes Senior Loan bears interest at a floating rate of 1.67% plus one month LIBOR. At March 31, 2015, the interest rate was 1.84%.

Lansbrook Mortgage Payable

On March 21, 2014, the Company, through an indirect subsidiary (the “Lansbrook Borrower”), entered into a $48 million loan with General Electric Capital Corporation, which is secured by the Lansbrook property. The $48.0 million is comprised of a $42.0 million initial advance and an additional $6.0 million of additional borrowing for the acquisition and improvement of additional units. At March 31, 2015, the Lansbrook Borrower has borrowed $0.7 million of the $6.0 million of additional borrowable funds. The loan matures on March 31, 2018 and bears interest at a fixed rate 4.44% per annum, with interest-only payments due until May 1, 2016 and principal payments beginning thereafter based upon a 30-year amortization schedule. Yield maintenance payments will be required to the extent the loan is prepaid before the third month prior to the maturity date and thereafter the loan may be prepaid without penalty. At the time of repayment, whether prepaid or paid at maturity, a $240,000 exit fee is due to the lender. The loan is nonrecourse to the Lansbrook Borrower, with recourse carve-outs for certain deeds, acts or failures to act on the part of the Lansbrook Borrower or any of its officers, members, managers or employees.

Park & Kingston Mortgage Payable

On March 16, 2015, the Company, through an indirect subsidiary (the “Park & Kingston Borrower”), entered into a $15.25 million loan with the Federal National Mortgage Association (“Fannie Mae”), which is secured by Park & Kingston. The loan matures on April 1, 2020 and bears interest at a fixed rate of 3.21%, with interest-only payments due for the entire loan term. Yield maintenance payments will be required to the extent prepaid before the sixth month prior to the maturity date; during the period from the sixth month prior to the maturity date to the third month prior to the maturity date, a prepayment premium of 1% of the principal being prepaid will be required, and thereafter the loan may be prepaid without penalty. The loan is nonrecourse to the Park & Kingston Borrower with recourse carve-outs for certain deeds, acts or failures to act on the part of the Park & Kingston Borrower, or any of its officers, members, managers or employees.

Fox Hill Mortgage Payable

On March 26, 2015, the Company, through an indirect subsidiary (the “Fox Hill Borrower”), entered into a $26.7 million loan with Walker & Dunlop, LLC, which is secured by Fox Hill. The loan was subsequently assigned to Fannie Mae. The loan matures on April 1, 2022 and bears interest at a fixed rate of 3.57%, with interest-only payments due until May 1, 2019 and fixed monthly payments based on 30-year amortization thereafter. During the first 60 months of the term, the loan may be prepaid at any time with at least 30 business days prior notice and the payment of a prepayment premium equal to the greater of (i) 1% of the principal balance and (ii) a yield maintenance amount calculated as set forth in the loan agreement. After the first 60 months of the term through the fourth month prior to the end of the term, the loan may be prepaid at any time with at least 30 business days prior notice and the payment of a prepayment premium equal to 1% of the principal balance, and thereafter, the loan may be prepaid at any time at par. The loan is nonrecourse to the Company and the Fox Hill Borrower with recourse carve-outs for certain deeds, acts or failures to act on the part of the Company and the Fox Hill Borrower, or any of its officers, members, managers or employees.

As of March 31, 2015, contractual principal payments for the five subsequent years and thereafter are as follows (amounts in thousands):

Year	Total
2015 (April 1-December 31)	$	1,056
2016		2,717
2017		3,040
2018		44,297
2019		2,938
Thereafter		200,207
	$	254,255
Add: Unamortized fair value debt adjustment		808
Total	$	255,063

The net book value of real estate assets providing collateral for these above borrowings were $352.0 million and $288.4 million at March 31, 2015 and December 31, 2014, respectively.