NOTES AND BOND PAYABLE (Tables)

12 Months Ended

Dec. 31, 2015

As of December 31, 2015 and December 31, 2014, the Company’s notes and bond payable consisted of the following (dollars in thousands):



	Book Value as of December 31, 2015			Book Value as of December 31, 2014			Contractual Interest Rate as of December 31, 2015 ⁽¹⁾	Effective Interest Rate at December 31, 2015 ⁽¹⁾	Payment Type	Maturity Date ⁽²⁾
Richardson Portfolio Mortgage Loan	$	41,177		$	38,000		One-Month LIBOR + 2.10%	2.34%	Principal & Interest	05/01/2017
Bellevue Technology Center Mortgage Loan	52,960			49,836			One-Month LIBOR + 2.25%	2.49%	Interest Only ⁽³⁾	03/01/2017
Portfolio Revolving Loan Facility ⁽⁴⁾	47,087			12,447			One-Month LIBOR + 2.25%	2.49%	Interest Only ⁽³⁾	05/01/2017
Portfolio Mortgage Loan	100,032			93,751			One-Month LIBOR + 2.25%	2.49%	Interest Only ⁽³⁾	07/01/2017
1635 N. Cahuenga Mortgage Loan ⁽⁵⁾	—			4,650			⁽⁵⁾	⁽⁵⁾	⁽⁵⁾	⁽⁵⁾
Burbank Collection Mortgage Loan	9,098			9,043			One-Month LIBOR + 2.35%	2.60%	Interest Only	09/30/2016
50 Congress Mortgage Loan	28,075			26,935			One-Month LIBOR + 1.90%	2.14%	Interest Only ⁽³⁾	10/01/2017
1180 Raymond Bond Payable	6,795			6,945			6.50%	6.50%	Principal & Interest	09/01/2036
Central Building Mortgage Loan	24,896			24,896			One-Month LIBOR + 1.75%	1.99%	Interest Only	11/13/2018
Maitland Promenade II Mortgage Loan ⁽⁶⁾	20,182			20,182			One-Month LIBOR + 2.90%	3.25%	Interest Only ⁽³⁾	01/01/2017
Westmoor Center Mortgage Loan	56,036			54,880			One-Month LIBOR + 2.25%	2.49%	Interest Only ⁽³⁾	02/01/2018
Plaza Buildings Senior Loan	111,000			109,707			One-Month LIBOR + 1.90%	2.14%	Interest Only ⁽³⁾	01/14/2017
Plaza Buildings Mezzanine Loan ⁽⁷⁾	—			25,000			⁽⁷⁾	⁽⁷⁾	⁽⁷⁾	⁽⁷⁾
424 Bedford Mortgage Loan	25,358			25,866			3.91%	3.91%	Principal & Interest	10/01/2022
1180 Raymond Mortgage Loan	28,100			28,100			One-Month LIBOR + 2.25%	2.49%	Interest Only	12/01/2017
Total Notes and Bond Payable principal outstanding	550,796			530,238
Net Premium/(Discount) on Notes and Bond Payable ⁽⁸⁾	50			25
Deferred financing costs, net	(3,523		)	(6,201		)
Total Notes and Bond Payable, net	$	547,323		$	524,062

_____________________

⁽¹⁾ Contractual interest rate represents the interest rate in effect under the loan as of December 31, 2015. Effective interest rate is calculated as the actual interest rate in effect as of December 31, 2015 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at December 31, 2015, where applicable.

⁽²⁾ Represents the initial maturity date or the maturity date as extended as of December 31, 2015; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown.

⁽³⁾Represents the payment type required under the loan as of December 31, 2015. Certain future monthly payments due under this loan also include amortizing principal payments. For more information of the Company’s contractual obligations under its notes and bond payable, see five-year maturity table below.

⁽⁴⁾The Portfolio Revolving Loan Facility is secured by the 1800 West Loop Building and the Iron Point Business Park. The Portfolio Revolving Loan Facility is comprised of $59.5 million of revolving debt and $13.0 million of non-revolving debt available to be used for tenant improvements, leasing commissions and capital improvements, subject to certain terms and conditions contained in the loan documents. As of December 31, 2015, $36.5 million of revolving debt and $10.6 million of non-revolving debt had been disbursed to the Company and the remaining $23.0 million of revolving debt and $2.4 million of non-revolving debt is available for future disbursements, subject to certain conditions contained in the loan documents. Monthly payments are initially interest only. Beginning June 1, 2016, and to the extent that there are amounts outstanding under the non-revolving portion of the loan, monthly payments will include interest and principal amortization payments of up to $80,000 per month.

⁽⁵⁾On March 11, 2015, in connection with the disposition of 1635 N. Cahuenga, the joint venture paid off the outstanding principal balance and all other sums due under this loan.

⁽⁶⁾Interest on the Maitland Promenade II Mortgage Loan is calculated at a variable annual rate of 290 basis points over one-month LIBOR, but at no point shall the interest rate be less than 3.25%.

⁽⁷⁾On April 1, 2015, the Company paid off the outstanding principal balance and all other sums due under this loan.

⁽⁸⁾Represents the unamortized premium/discount on notes and bond payable due to the above- and below-market interest rates when the debt was assumed. The discount/premium is amortized over the remaining life of the notes and bond payable.

Schedule of Maturities of Long-term Debt

The following is a schedule of maturities, including principal amortization payments, for all notes and bond payable outstanding as of December 31, 2015 (in thousands):



2016	$	13,649
2017	426,026
2018	81,182
2019	812
2020	846
Thereafter	28,281
	$	550,796

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details