Notes Payable (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Summary of Notes Payable

The following is a summary of the Company’s notes payable, in thousands:

Property/Facility	Payment (1)	Maturity Date	Rate		September 30, 2020			December 31, 2019
Richardson Heights (2)	P&I	July 1, 2041	4.61	%	$	16,824	$	$	17,260
Cooper Street (2)	P&I	July 1, 2041	4.61	%	7,264			7,435
Bent Tree Green (2)	P&I	July 1, 2041	4.61	%	7,264			7,435
Mitchelldale (2)	P&I	July 1, 2041	4.61	%	11,004			11,263
Hartman SPE LLC (3)	IO	October 9, 2021	1.95	%	259,000			259,000
EWB - SBA PPP (4)		December 31, 2020	—	%	2,492			—
Hartman XXI	IO	October 31, 2021	10.00	%	2,789			4,400
					$	306,637		$	306,793
Less: unamortized deferred loan costs					(3,009)			(3,754)
					$	303,628		$	303,039

(1)    Principal and interest (P&I) or interest only (IO).  

(2)    Each promissory note contains a call option wherein the holder of the promissory note may declare the outstanding balance due and payable on either July 1, 2024, July 1, 2029, July 1, 2034, or July 1, 2039.  

(3)    On October 9, 2020, the Company signed a maturity date extension agreement to extend the maturity date for one additional year to October 9, 2021. Options remain to extend for two additional one-year terms. Notice to exercise the next one-year maturity extension option is due not less than 30 days nor more than 60 days from the current maturity date. Exercise of each extension option is subject to certain compliance and non-default requirements and a minimum debt yield of 12.5%.

(4)    The EWB-SBA PPP was originated by Texan REIT Manager, LLC, a subsidiary of HIREIT. Texan REIT Manager payroll for the 12 weeks following the funding of the PPP loan, exceeds the PPP loan amount. The Company is in the process of applying for full forgiveness of the PPP loan amount pursuant to the CARES Act and regulations promulgated by the SBA.

Summary of Deferred Loan Costs

The Company's loan costs are amortized using the straight-line method over the terms of the loans, which approximates the interest method.  Costs which have been deferred consist of the following, in thousands:

	September 30, 2020		December 31, 2019
Deferred loan costs	$	5,287	$	7,155
Less:  deferred loan cost accumulated amortization	(2,278)		(3,401)
Total cost, net of accumulated amortization	$	3,009	$	3,754