Note 5 — Mortgage Notes Payable

The Company’s mortgage notes payable as of June 30, 2011 and December 31, 2010 consist of the following (dollar amounts in thousands):

			Outstanding Loan Amount
Portfolio	Encumbered Properties		June 30, 2011		December 31, 2010		Effective Interest Rate			Interest Rate	Maturity
Interior Design Building (1)		1	$	13,942	$	14,085		6.3	%	Fixed	Nov. 2012
Bleecker Street (2)		5		21,300		21,300		4.3	%	Fixed	Dec. 2015
Foot Locker		1		3,250		—		4.6	%	Fixed	Jun. 2016
Regal Parking Garage		1		3,000		—		4.5	%	Fixed	Jul. 2016
		8	$	41,492	$	35,385		5.0	%

(1)	The mortgage is guaranteed by certain officers of the Company and the Company has entered into an agreement with these officers pursuant to which the Company has agreed to be responsible for any amounts required to be paid by them under the guaranty.

(2)

The mortgage is guaranteed by an affiliate, American Realty Capital Trust, Inc., until such time as the Company reaches a net worth of $40.0 million. This affiliate has as a non-controlling interest in Bleecker Street through its initial investment of $12.0 million in connection with the purchase of this portfolio. Thereafter, this minimum net worth must be maintained by the Company to remain in compliance with the debt covenants under the mortgage agreement.

The Company’s sources of secured financing generally require financial covenants, including restrictions on corporate guarantees, the maintenance of certain financial ratios (such as specified equity and debt service coverage ratios) as well as the maintenance of minimum net worth. As of June 30, 2011, the Company was in compliance with the debt covenants under the mortgage note agreements.

The following table summarizes the scheduled aggregate principal repayments subsequent to June 30, 2011 (amounts in thousands):

	Total
July 1, 2011 – December 31, 2011	$	145
2012		13,797
2013		—
2014		—
2015		21,300
Thereafter		6,250
Total	$	41,492