STRUCTURED FINANCING PORTFOLIO, NET

As of September 30, 2015, the Company’s structured financing portfolio, net consisted of notes receivable and preferred equity investments, aggregating $153.4 million. These investments were collateralized either by underlying properties, the borrowers' ownership interests in the entities that own properties and/or by the borrowers' personal guarantee subject, as applicable, to senior liens, as follows:



(dollars in thousands)
Description	Notes	Effective interest rate (1)	First Priority liens	Net Carrying Amounts of Structured Financing Portfolio as of September 30, 2015		Net Carrying Amounts of Structured Financing Portfolio as of December 31, 2014		Maturity date	Extension Options
Mezzanine Loan	(2)	12.7%	18,900	$	—	$	8,000	10/3/2015
First Mortgage Loan		8.8%		7,500		7,500		10/31/2015	1 x 12 Months
Zero Coupon Loan	(3) (4)	24.0%	166,200	—		4,986		1/3/2016
First Mortgage Loan		5.5%		4,000		4,000		4/1/2016	1 x 6 Months
First Mortgage Loan	(5)	6.0%		15,000		—		5/1/2016	1 x 12 Months
Preferred Equity		13.5%		4,000		4,000		5/9/2016
Other	(6)	17.0%		6,500		—		6/1/2016
Other		18.0%		3,757		3,307		7/1/2017
Preferred Equity		8.1%	20,855	13,000		13,000		9/1/2017
First Mortgage Loan	(7)	LIBOR + 7.1%		26,000		—		6/25/2018	1 x 12 Months
Zero Coupon Loan	(3) (8)	2.5%		30,046		—		5/31/2020
Mezzanine Loan		15.0%		30,879		30,879		11/9/2020
Other		LIBOR + 2.5%		—		4,000		12/30/2020
Mezzanine Loan	(9)	10.0%	87,477	—		7,983		Demand
First Mortgage Loan	(10)	7.7%		12,000		12,000		Demand
Individually less than 3%	(11) (12) (13)	11.6%		669		2,631		12/31/2015
Total				$	153,351	$	102,286

Notes:

(1) Includes origination and exit fees

(2) During July 2015, the Company received repayment in full of this $8.0 million note.

(3) The principal balance for this accrual-only loan is increased by the interest accrued.

(4) During April 2015, the Company converted a $5.6 million loan into an equity interest in a shopping center (Note 4).

(5) During May 2015, the Company made a $15.0 million loan, which is collateralized by a property, bears interest at 6.0% and matures May 1, 2016.

(6) During June 2015, the Company made a $6.5 million loan, which bears interest at 17.0% and matures June 1, 2016. Subsequent to September 30, 2015, this loan was converted into an equity interest in a shopping center (Note 13).

(7) During June 2015, the Company made a $26.0 million loan, which is collateralized by a property, bears interest at LIBOR + 7.1% and matures June 25, 2018.


6.	STRUCTURED FINANCING PORTFOLIO, NET (continued)

(8) During June 2015, the Company made a $29.8 million loan in connection with the disposition of City Point's Phase III (Note 4), which is collateralized by the purchaser's interest in the property. The loan bears interest at 2.5% and matures May 31, 2020.

(9) Comprised of three cross-collateralized loans from one borrower, which were non-performing. During July 2015, the Company received repayment of these notes in full as well as all accrued interest, default interest and additional penalties.

(10) Loan was non-performing as of September 30, 2015.

(11) Consists of one loan as of September 30, 2015.

(12) During February 2015, the Company advanced an additional $0.4 million on this loan collateralized by a property.

(13) During June 2015, the Company converted a $1.9 million loan into an equity interest in the remaining 10% of 152-154 Spring Street (Note 4).

The Company monitors the credit quality of its notes receivable on an ongoing basis and considers indicators of credit quality such as loan payment activity, the estimated fair value of the underlying collateral, the seniority of the Company's loan in relation to other debt secured by the collateral and the prospects of the borrower. As of September 30, 2015, the Company held one non-performing note.