Promissory Notes Payable

12 Months Ended

Dec. 31, 2015

The Company’s promissory notes payable as of December 31, 2015 and December 31, 2014 were as follows (in thousands):



	Outstanding Promissory Notes Payable
Note Payable and Use of Proceeds	December 31, 2015		December 31, 2014		Interest Rate		Payment	Maturity
Barceló Promissory Note for acquisition of Barceló Portfolio	$	—	$	63,074	6.8	%	Interest Only	See below
Property Improvement Plan Promissory Note	$	—	$	1,775	4.5	%	Interest Only	March 2019

The promissory note the Company executed in favor of BCC in connection with the acquisition of the Barceló Portfolio (as amended, the "Barceló Promissory Note"), which had a maturity date of within 10 business days after the date the Company raised $70.0 million in common equity from the Offering after the closing of the Grace Acquisition, and payment of all acquisition related expenses which include payments to the Advisor and affiliates, matured and was repaid in full during the second quarter ended June 30, 2015. Also during the second quarter ended June 30, 2015, the Company repaid in full the Property Improvement Plan Promissory Note of $1.8 million. The Property Improvement Plan Promissory Note was payable to Crestline (see Note 11 - Related Party Transactions and Arrangements).

Interest expense related to the Company's promissory notes payable for the year ended December 31, 2015 and the year ended December 31, 2014 were $1.4 million and $3.6 million, respectively.