REAL ESTATE LOANS RECEIVABLE

12 Months Ended

Dec. 31, 2014

REAL ESTATE LOANS RECEIVABLE [Abstract]

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

LOANS RECEIVABLE AND OTHER INVESTMENTS

As of December 31, 2014 and 2013, the Company’s loans receivable and other investments consisted of the following (dollars in thousands):

Investment	Quantity	Facility Type	Principal Balance as of December 31, 2014		Book Value as of December 31, 2014		Book Value as of December 31, 2013		Weighted Average Contractual Interest Rate / Rate of Return		Weighted Average Annualized Effective Interest Rate / Rate of Return		Maturity Date
Loans Receivable:
Mortgage	4	Skilled Nursing / Senior Housing / Acute Care Hospital	$	144,033	$	144,383	$	149,450	8.3	%	8.2	%	10/13/15 - 1/31/18
Construction	3	Acute Care Hospital / Senior Housing	65,242		65,525		14,283		7.5	%	7.4	%	9/30/16 - 10/31/18
Mezzanine	2	Skilled Nursing / Senior Housing	21,432		21,491		12,410		11.3	%	11.1	%	6/27/15 - 8/31/17
Pre-development	5	Senior Housing	3,652		3,777		1,366		9.0	%	7.8	%	8/16/15 - 9/09/17
	14		234,359		235,176		177,509		8.3	%	8.2	%
Other Investments:
Preferred Equity	6	Skilled Nursing/Senior Housing	16,125		16,407		7,784		12.5	%	12.4	%	N/A
Total	20		$	250,484	$	251,583	$	185,293	8.6	%	8.5	%

Onion Creek Option Exercise

On October 21, 2014, the Company exercised its option to purchase one skilled nursing facility securing a related mortgage loan for $14.0 million. At the closing of the acquisition, $11.0 million of the sales proceeds were used to repay a portion of the mortgage loan, resulting in the Company funding an additional $3.0 million for the acquisition.

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.