6.	Mortgages Payable

As part of the $826.4 million invested in new properties during the first nine months of 2011, we assumed $67.4 million of mortgages payable to third-party lenders. These mortgages are secured by the properties on which the debt was placed and are non-recourse. We expect to pay off the mortgages as soon as prepayment penalties and costs make it economically feasible to do so. We intend to continue our policy of primarily identifying property acquisitions that are free from mortgage indebtedness.

In aggregate, net premiums totaling $957,000 were recorded upon assumption of the mortgages at the time of the respective property acquisitions to account for above-market interest rates. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective notes, using a method that approximates the effective-interest method. These mortgages contain customary covenants, such as limiting our ability to further mortgage each applicable property or to discontinue insurance coverage, without the prior consent of the lender.

As a result of assuming these mortgages payable, we incurred deferred financing costs of $917,000 that were classified as part of other assets on our consolidated balance sheet at September 30, 2011. The balance of these deferred financing costs at September 30, 2011, was $835,000, which is being amortized over the remaining term of each mortgage.

The following is a summary of our mortgages payable as of September 30, 2011 (principal balance, unamortized premiums (discounts) and mortgage payable balances in thousands):

Tenant Name	Stated Interest Rate(1)			Effective Interest Rate			Maturity Date(2)	Remaining Principal Balance(2)		Amortized Premium (Discount) Balance			Mortgage Payable Balance
Aviall Services, Inc. (3)		6.25	%		4.96	%	12/1/13	$	12,512	$	406		$	12,918
Aviall Services, Inc. (3)		6.25	%		4.82	%	9/1/14		11,710		343			12,053
T-Mobile USA, Inc.		5.89	%		5.15	%	5/6/14		10,664		182			10,846
MeadWestvaco Corporation		4.73	%		4.89	%	6/10/15		23,625		(72	)		23,553
Solae, LLC(3)(4)		8.26	%		8.26	%	12/28/13		4,510		--			4,510
Solae, LLC(3)(4)		8.26	%		8.26	%	12/28/13		4,270		--			4,270
								$	67,291	$	859		$	68,150

(1) With the exception of the MeadWestvaco Corporation mortgage, the mortgages are at fixed interest rates. The MeadWestvaco Corporation mortgage is at a floating variable interest rate calculated as the sum of the current 1 month LIBOR plus 4.50%, not to exceed an all-in interest rate of 5.5%.

(2) The mortgages require monthly payments, with a principal payment due at maturity.

(3) These are mortgages associated with one property occupied by the applicable tenant.

(4) As part of the assumption of these mortgages payable related to our acquisition of Solae, LLC, we also assumed an $8.8 million note receivable, upon which we will receive interest income at a stated rate of 8.14% through December 28, 2013.