Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2012

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Note 6. Fair Value of Financial Instruments

Our financial instruments at March 31, 2012 include cash and cash equivalents, restricted cash, rents receivable, mortgage notes payable, accounts payable, our revolving credit facility and our term loan, amounts due to related persons, other accrued expenses and security deposits.  At March 31, 2012, the fair value of our financial instruments approximated their carrying values in our condensed consolidated financial statements, except as follows:

	Carrying Amount		Fair Value
Mortgage note payable, 5.73% interest rate, including unamortized premium of $775, due in 2015	$	49,907	$	50,705
Mortgage note payable, 6.21% interest rate, due in 2016	24,645		27,086
Mortgage note payable, 7.00% interest rate, including unamortized premium of $974, due in 2019	10,483		10,993
Mortgage note payable, 8.15% interest rate, including unamortized premium of $749, due in 2021	9,791		10,877
	$	94,826	$	99,661

We estimate the fair values of our mortgage notes payable by using discounted cash flow analyses and currently prevailing market terms as of the measurement date (Level 3 inputs as defined in the fair value hierarchy under GAAP).