Mortgage Notes Payable

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



		Outstanding Loan Amount
Portfolio	Encumbered Properties	December 31, 2011		December 31, 2010		Effective Interest Rate		Interest Rate	Maturity
Interior Design Building ⁽¹⁾	1	$	21,300	$	14,085	4.4%		Fixed	Dec. 2021
Bleecker Street ⁽²⁾	3	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
Duane Reed	1	8,400		—		3.6%		Fixed	Nov. 2016
Washington Street	1	5,000		—		4.4%		Fixed	Dec. 2021
One Jackson Square ⁽³⁾	1	13,000		—		3.4%		Fixed	Dec. 2016
	9	$	75,250	$	35,385	4.1%	⁽⁴⁾

______________________

(1)

The Company refinanced this mortgage in November 2011. The mortgage in place as of December 31, 2010, had an effective interest rate of 6.3% and matured in November 2012 and was guaranteed by certain officers of the Company. This guarantee was terminated when the mortgage was defeased. In connection with the defeasance, the Company incurred $0.8 million in defeasance fees and the write-off of deferred financing costs, which is included in interest expense in the consolidated statement of operations for the year ended December 31, 2011.

(2)

The mortgage was 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 net worth exceeded $40.0 million in October 2011 and therefore, the affiliate no longer guarantees this mortgage obligation.


(3)	Fixed through an interest rate swap agreement.


(4)	Calculated on a weighted average basis.

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 December 31, 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 December 31, 2011 (in thousands):



	Total
2012	$	433
2013	453
2014	473
2015	21,794
2016	28,167
Thereafter	23,930
Total	$	75,250