LOANS RECEIVABLE AND OTHER INVESTMENTS (Notes)

9 Months Ended

Sep. 30, 2014

Loans Receivable and Other Investments [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

LOANS RECEIVABLE AND OTHER INVESTMENTS

As of September 30, 2014, the Company’s loans receivable and other investments consisted of the following (dollars in thousands):

Investment	Quantity	Facility Type	Principal Balance as of September 30, 2014		Book Value as of September 30, 2014		Weighted Average Contractual Rate		Weighted Average Annualized Effective Rate		Maturity Date
Loans Receivable:
Mortgage	4	Skilled Nursing / Senior Housing / Acute Care Hospital	$	150,112	$	150,515	8.2	%	8.1	%	10/31/16 - 1/31/18
Construction	3	Acute Care Hospital / Memory Care	62,541		62,845		7.5	%	7.3	%	9/30/16 - 10/31/18
Mezzanine	2	Skilled Nursing / Senior Housing	21,730		21,797		11.3	%	11.1	%	12/27/14 - 08/31/17
Pre-development	5	Senior Housing	3,572		3,696		9.0	%	8.2	%	8/16/15 - 09/09/17
	14		237,955		238,853		8.3	%	8.2	%
Other Investments:
Preferred Equity	4	Senior Housing	11,631		11,821		11.9	%	11.9	%	NA
Total	18		$	249,586	$	250,674	8.5	%	8.4	%

Meridian Mezzanine Loan

On August 15, 2014, the Company originated a $15.5 million mezzanine loan (the “Meridian Mezzanine Loan”) with affiliates of Meridian ALZ Investors, LLC (“Meridian”) in connection with the Company’s previously announced pipeline agreement with Meridian. The proceeds of the mezzanine loan were used to repay the Company's existing preferred equity investment in an affiliate of Meridian totaling $8.3 million (including accrued and unpaid preferred returns), resulting in a net investment by the Company of $7.2 million. The Meridian Mezzanine Loan has a three-year term and bears interest at a fixed rate of 11.0% per annum. It is secured by Meridian's equity interest in two memory care facilities and a skilled nursing facility.

Chai Acquisition Option Exercise

On March 5, 2014, the Company exercised its option to purchase two skilled nursing facilities indirectly securing a related mezzanine loan for $24.5 million.

At the closing of the acquisition, $5.8 million of the sales proceeds were used to repay a portion of the mezzanine loan, resulting in the Company funding an additional $18.7 million for the acquisition and leaving $6.5 million outstanding under the mezzanine loan. The Company continues to have an option to purchase up to an additional $25.5 million of the remaining ten properties securing the mezzanine loan.