Mortgage Notes Receivable

The Company’s mortgage note receivable is classified as held-for-investment based on management’s intent and ability to hold the loans until maturity. As such, the loans are carried at amortized cost. Also, the Company’s mortgage note receivable is secured by an existing building. Approximately $1.2 million and $58.7 million, respectively, were funded on existing construction mortgage loans during the years ended December 31, 2014 and 2013. A summary of the Company’s mortgage notes receivable for the years ended December 31, 2014 and 2013 is shown in the table below:



							Balance as of December 31,
State	Property Type (1)	Face Amount		Interest Rate		Maturity Date	2014		2013
(dollars in thousands)
Construction mortgage notes:
Oklahoma	MOB	$	94,889	7.72	%	09/30/14	$	—	$	79,969
Total construction mortgage notes							—		79,969

Other mortgage notes:
Iowa	Other	40,000		7.70	%	01/10/14	—		39,973
Florida	MOB	3,750		7.50	%	04/10/15	—		3,750
Texas	Land	3,666		5.00%-6.00%		03/25/15	—		1,855
Nevada	MOB	1,900		6.50	%	09/30/17	1,900		—
Total other mortgage notes							1,900		45,578

Total mortgage notes receivable							$	1,900	$	125,547

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(1) MOB - Medical office building.

Construction Mortgage Note Fundings

In May 2014, the Company acquired a medical office building in Oklahoma for $85.4 million, including the elimination of the construction mortgage note receivable totaling $81.2 million and cash consideration of approximately $4.2 million. The building is 100% leased to Mercy Health. The Company provided $1.2 million in fundings toward the facility under a construction mortgage note during 2014. See Note 4 for details regarding the Company's acquisition.

Mortgage Note Receivable Default

As of December 31, 2013, the Company held a $40.0 million loan that was secured by a first position mortgage on a multi-tenant office building in Iowa that is 93% leased. Interest only payments at a fixed rate of 7.7% were due, and paid, through the maturity of the loan on January 10, 2014. The borrower did not make the balloon principal payment at maturity. The borrower transfered its interest in the property to the Company in satisfaction of the debt. See Note 4 for details regarding the Company's acquisition.