Notes Receivable

The Company had the following mezzanine loans outstanding as of September 30, 2018 and December 31, 2017 (in thousands):



	Outstanding loan amount				Maximum loan commitment		Interest rate
Development Project	September 30, 2018		December 31, 2017		Maximum loan commitment		Interest rate
1405 Point	$	28,133	$	22,444	$	28,232	8.0	%
The Residences at Annapolis Junction	46,396		43,021		48,105		10.0	%
North Decatur Square	15,703		11,790		29,673		15.0	%
Delray Plaza	6,779		5,379		13,123		15.0	%
Nexton Square	2,219		—		2,314		10.0	%
Total	$	99,230	$	82,634	$	121,447

Interest on the mezzanine loans is accrued and funded utilizing the interest reserves for each loan, which are components of the respective maximum loan commitments, and such accrued interest is added to the loan receivable balances. The Company recognized interest income for the three and nine months ended September 30, 2018 and 2017 as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
Development Project	2018		2017		2018		2017
1405 Point	$	547	$	443	$	1,483	$	1,288
The Residences at Annapolis Junction	1,166		1,054		3,374		3,051
North Decatur Square	569		412		1,561		623
Delray Plaza	228		—		676		—
Nexton Square	19		—		19		—
Total	$	2,529	$	1,909	$	7,113	$	4,962

1405 Point

1405 Point (also known as Point Street Apartments) opened during the first quarter of 2018.

The developer of 1405 Point secured a senior construction loan of up to $67.0 million to fund the development and construction of 1405 Point on November 10, 2016. The Company has agreed to guarantee $25.0 million of the senior construction loan in exchange for the option to purchase up to an 88% controlling interest in 1405 Point upon completion of the project. The Company currently has a $2.1 million letter of credit for the guarantee of the senior construction loan.

The Residences at Annapolis Junction

The developer of The Residences at Annapolis Junction secured a senior construction loan of up to $60.0 million to fund the development and construction of Annapolis Junction's residential component on September 30, 2016. The Company agreed to guarantee up to $25.0 million of the senior construction loan in exchange for the option to purchase up to an 88% controlling interest in Annapolis Junction.

Nexton Square

On August 31, 2018, the Company financed a $2.2 million bridge loan to the developer of Nexton Square, a shopping center development project located in Summerville, South Carolina. The bridge loan bears interest at a rate of 10%. All principal and accrued interest will be due upon the earlier of (i) February 28, 2019 or (ii) any refinancing of the project. This loan has been personally guaranteed by the developer. The Company does not have any option to purchase this project.

North Decatur Square

On September 18, 2018, the Company increased the maximum commitment for the North Decatur Square mezzanine loan to $29.7 million.

Subsequent to September 30, 2018

The Interlock

On October 2, 2018, the Company financed a $3.0 million bridge loan to S.J. Collins, the developer of the office and retail components of The Interlock, a new mixed-use public-private partnership with Georgia Tech in West Midtown Atlanta. The bridge loan bears interest at a rate of 15% and matures on January 1, 2019. This loan has been personally guaranteed by the developer. The Company does not have an option to purchase this project. On October 23, 2018, the Company increased the maximum commitment for this loan to $4.0 million and advanced an additional $0.7 million.

North Decatur Square

On October 2, 2018, the Company advanced an additional $2.2 million on this mezzanine loan.

The Residences at Annapolis Junction

On October 4, 2018, the Company entered into an agreement to sell its purchase option for $5.0 million upon the developer's refinancing of the senior construction loan. Upon this refinancing, the maturity of the remaining outstanding mezzanine loan will coincide with the maturity of the new senior loan, which is 12 months from origination with an option to extend for an additional 12 months, subject to certain conditions.