MORTGAGE NOTES PAYABLE AND UNSECURED TERM LOANS PAYABLE

A summary of Mortgage Notes Payable follows:



	Interest Rate	Monthly P&I Payment		Maturity Date	Carrying Amount of Securing Real Estate at December 31, 2012		Balance at December 31,
Property	Interest Rate	Monthly P&I Payment		Maturity Date			2012	2011
					(In thousands)
University Business Center (120 & 130 Cremona)	6.43%	$	81,856	Repaid	$	—	—	2,193
University Business Center (125 & 175 Cremona)	7.98%	88,607		Repaid	—		—	8,771
Oak Creek Distribution Center IV	5.68%	31,253		Repaid	—		—	3,506
51^st Avenue, Airport Distribution, Broadway I, III & IV, Chestnut, Interchange Business Park, Main Street, North Stemmons I land, Southpark, Southpointe and World Houston 12 & 13	6.86%	279,149		Repaid	—		—	32,204
Interstate Distribution Center - Jacksonville	5.64%	31,645		Repaid	—		—	4,234
35^th Avenue, Beltway I, Broadway V, Lockwood, Northwest Point, Sunbelt, Techway Southwest I and World Houston 10, 11 & 14	4.75%	259,403		09/05/2013	37,775		34,474	35,912
Airport Commerce Center I & II, Interchange Park, Ridge Creek Distribution Center I, Southridge XII, Waterford Distribution Center and World Houston 24, 25 & 27	5.75%	414,229		01/05/2014	64,794		52,086	54,001
Kyrene Distribution Center I	9.00%	11,246		07/01/2014	2,095		198	310
Americas Ten I, Kirby, Palm River North I, II & III, Shady Trail, Westlake I & II and World Houston 17	5.68%	175,479		10/10/2014	24,553		27,467	27,996
Beltway II, III & IV, Commerce Park 1, Eastlake, Fairgrounds I-IV, Nations Ford I-IV, Techway Southwest III, Wetmore I-IV and World Houston 15 & 22	5.50%	536,552		04/05/2015	66,416		64,374	67,188
Country Club I, Lake Pointe, Techway Southwest II and World Houston 19 & 20	4.98%	256,952		12/05/2015	20,777		29,465	31,039
Huntwood and Wiegman Distribution Centers	5.68%	265,275		09/05/2016	21,343		30,332	31,748
Alamo Downs, Arion 1-15 & 17, Rampart I, II & III, Santan 10 and World Houston 16	5.97%	557,467		11/05/2016	54,614		63,132	65,961
Arion 16, Broadway VI, Chino, East University I & II, Northpark I-IV, Santan 10 II, 55^th Avenue and World Houston 1 & 2, 21 & 23	5.57%	518,885		09/05/2017	54,998		60,310	63,093
Dominguez, Industry I & III, Kingsview, Shaw, Walnut and Washington ⁽¹⁾	7.50%	539,747		05/05/2019	48,301		61,052	62,875
Blue Heron Distribution Center II	5.39%	16,176		02/29/2020	4,566		1,161	1,288
40^th Avenue, Beltway V, Centennial Park, Executive Airport, Ocean View, Techway Southwest IV, Wetmore V-VIII and World Houston 26, 28, 29 & 30	4.39%	463,778		01/05/2021	74,918		69,376	71,837
America Plaza, Central Green, Glenmont I & II, Interstate I, II & III, Rojas, Stemmons Circle, Venture, West Loop I & II and World Houston 3-9	4.75%	420,045		06/05/2021	46,047		61,970	64,014
Arion 18, Beltway VI & VII, Commerce Park II & III, Concord Distribution Center, Interstate Distribution Center V, VI & VII, Lakeview Business Center, Ridge Creek Distribution Center II, Southridge IV & V and World Houston 32	4.09%	329,796		01/05/2022	61,701		52,369	—
					$	582,898	607,766	628,170


(1)	This mortgage loan has a recourse liability of $5 million which will be released based on the secured properties generating certain base rent amounts.

A summary of Unsecured Term Loans Payable follows:



			Balance at December 31,
	Interest Rate	Maturity Date	2012		2011
			(In thousands)
$80 Million Unsecured Term Loan ⁽¹⁾	2.92%	08/15/2018	$	80,000	—
$50 Million Unsecured Term Loan	3.91%	12/21/2018	50,000		50,000
			$	130,000	50,000

(1)

The interest rate on this unsecured term loan is comprised of LIBOR plus 190 basis points subject to a pricing grid for changes in the Company's leverage or coverage ratings. The Company entered into an interest rate swap to convert the loan's LIBOR rate to a fixed interest rate, providing the Company an effective interest rate on the term loan of 2.92% as of December 31, 2012. See Note 13 for additional information on the interest rate swap.

The Company’s unsecured term loans have certain restrictive covenants, such as maintaining debt service coverage and leverage ratios and maintaining insurance coverage, and the Company was in compliance with all of its debt covenants at December 31, 2012.

The Company currently intends to repay its debt obligations, both in the short-term and long-term, through its operating cash flows, borrowings under its lines of credit, proceeds from new mortgage debt and term debt, and/or proceeds from the issuance of equity instruments.

Principal payments on long-term debt, including mortgage notes payable and unsecured term loans payable, due during the next five years as of December 31, 2012 are as follows:



Years Ending December 31,	(In thousands)

2013	$	57,915
2014	98,920
2015	102,287
2016	92,716
2017	58,145