Mortgage Loans

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

Mortgage Loans

Note F - Mortgage Loans

The Company owns the B participation piece (the "B piece") of a first mortgage secured by an 844,000 square foot office building in Dallas, Texas known as 2100 Ross at an original cost of $6.9 million.  The B piece was originated by Wachovia Bank, N.A., a Wells Fargo Company, and has a face value of $10.0 million and a stated coupon rate of 6.065%. Upon maturity in May 2012, the Company will receive a principal payment of $10.0 million, which produces a yield to maturity of 15.6%.  The carrying amount of the mortgage loan was $9.2 million at June 30, 2011.

During the second quarter, the borrower entered into default on the mortgage secured by 2100 Ross, including the B piece held by the Company.  At this time, the Company views its investment in the B piece as recoverable and intends to pursue its rights under various loan agreements.

In connection with the sale of One Park Ten, the Company seller-financed a $1.5 million note receivable that bears interest at 7.25% per annum on an interest-only basis through maturity in June 2012.  The carrying amount of the mortgage loan was $1.5 million at June 30, 2011.