Notes Receivable

6 Months Ended

Jun. 30, 2020

4.	Notes Receivable

Notes receivable consists of mezzanine loans and other loan arrangements. The following table is a summary of our notes receivable components as of June 30, 2020 and December 31, 2019 (in thousands):


	June 30, 2020			December 31, 2019
Mezzanine loans	$	11,135	⁽¹⁾	$	13,284
Other loans		5,121			4,824
Notes receivable reserve		(163)			(181)
Total	$	16,093		$	17,927

(1)	Subsequent to June 30, 2020, we received $2,569 related to the partial paydown of a mezzanine loan.

The following table summarizes our notes receivable activity for the six months ended June 30, 2020 and 2019 (in thousands):


	Six Months Ended June 30,
		2020			2019
Advances under notes receivable	$	611		$	7,766	⁽¹⁾
Principal payments received under notes receivable		(2,163)			(49)
Reclassified to lease incentives		(300)	⁽²⁾		(200)	⁽²⁾
Notes receivable reserve		18			(75)
Total	$	(1,834)		$	7,442

(1)

We originated a $6,800 mezzanine loan commitment for the development of a 204-unit ILF/ALF/MC in Georgia. The mezzanine loan has a five-year term and a 12.0% return, a portion of which is paid in cash, and the remaining portion of which is deferred during the first 46 months. Additionally, we originated a $1,400 note agreement, funding $582 with a commitment to fund $818. The note bears interest at 7.0%. Further, we originated a $550 note agreement, funding $200 with a commitment to fund $350. The note bears interest at 7.5%.

(2)	Represents interim working capital loans related to development projects which matured upon completion of the development projects and commencement of the master leases.