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NOTES RECEIVABLE
 3 Months Ended
Mar. 31, 2013
Mortgage Loans on Real Estate [Abstract]  
NOTES RECEIVABLE
NOTES RECEIVABLE

As of March 31, 2013, the Company’s notes receivable, net, aggregated $105.4 million, and were collateralized either by the underlying properties or the borrowers' ownership interests in the entities that own the properties and/or by the borrowers' personal guarantee subject, as applicable, to senior liens, as follows:
Note description
Effective interest rate (1)
Maturity date
First Priority liens
Net Carrying Amounts of Notes Receivable
Extension Options
(dollars in thousands)
 
 
 
 

 

First Mortgage Loan
9.0%
6/1/2013
$
—

$
12,204

1 x 6 months

First Mortgage Loan
6.0%
12/31/2013
—

10,250

—

First Mortgage Loan
8.0%
12/31/2013
—

8,000

—

Mezzanine Loan
10.0%
12/31/2013
85,835

9,089

—

First Mortgage Loan
11.0%
1/1/2014
—

25,000

1 x 6 months

Zero Coupon Loan
24.0%
1/3/2016
166,200

4,078

—

Mezzanine Loan
15.0%
11/9/2020
—

30,879

—

Mezzanine Loan
15.0%
Upon Capital Event
13,265

3,834

—

Individually less than 3%
11.00% to 17.50%
12/31/13 to Capital Event
37,623

2,033

—

Total
 
 
 
$
105,367




Note:

(1) The effective interest rate includes points and exit fees.

During January 2013, Fund III received a payment of $2.5 million, representing the full principal and interest amount on a note that had been previously written off.

During February 2013, Fund III, in conjunction with its acquisition of Nostrand Place (Note 4), received repayment on a portion of its first mortgage loan of $18.5 million and contributed the remaining unliquidated balance to a joint venture.

6.
NOTES RECEIVABLE (continued)

During March 2013, the Company received a payment of $5.4 million, representing full payment on a construction loan.

The Company has provided allowances against two notes receivable with interest payments in arrears that have an aggregate outstanding gross carrying balance of $5.6 million. The following table reconciles the allowance for notes receivable from December 31, 2012 to March 31, 2013:

(dollars in thousands)
Allowance for Notes Receivable
Balance at December 31, 2012
$
3,681

Change in allowance, net
39

Balance at March 31, 2013
$
3,720