Debt Obligations

3 Months Ended

Dec. 31, 2015

Debt obligations consist of the following (dollars in thousands):



	December 31, 2015		September 30, 2015
Mortgages payable (a)	$	596,204	$	566,438
Junior subordinated notes	37,400		37,400
Other borrowings - including $8,000 to related party	14,001		—
Total debt obligations	$	647,605	$	603,838

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(a) Excludes mortgages payable held for sale of $19,248

Mortgages Payable

During the three months ended December 31, 2015, the Trust purchased a multi-family property and incurred the following debt (dollars in thousands):



Location	Closing Date	Acquisition Mortgage Debt		Interest Rate		Maturity Date
LaGrange, GA	11/15/15	$	16,051	4.36	%	Febraury 2022

During the three months ended December 31, 2015, the Trust obtained additional mortgage financing as set forth in the table below (dollars in thousands):



Location	Closing Date	Additional Mortgage Debt		Interest Rate		Maturity Date
Pensacola, FL	10/13/15	$	3,194	4.92	%	March 2022
Atlanta, GA	11/10/15	5,000		4.93	%	July 2021
		$	8,194

In the quarter ended December 31, 2015, the Newark Joint Venture refinanced mortgage debt of $5,508,000 with a 6% interest rate and maturing in 2030 with new mortgage debt of $7,054,000 with a 5.75% interest rate and maturing in January 2022. The new debt was obtained in connection with a $2,746,000 New Markets Tax Credit transaction. See Note 9 "Deferred Income (New Markets Tax Credit Transaction)".

Junior Subordinated Notes

At December 31, 2015 and September 30, 2015, the Trust's junior subordinated notes had an outstanding principal balance of $37,400,000. The interest rates on the outstanding notes are set forth in the table below:



Interest Period	Interest Rate
August 1, 2012 through April 29, 2016	4.90	%
April 30, 2016 through April 30, 2036	Libor + 2.00%

The junior subordinated notes require interest only payments through maturity, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for each of the three months ended December 31, 2015 and 2014 was $458,000. Amortization of the deferred costs, a component of interest expense, was $5,000 for each of the three months ended December 31, 2015 and 2014.

Other borrowings

On December 11, 2015, the Trust borrowed $8,000,000, on an unsecured basis, from Gould Investors L.P. , a related party. The note bears interest at 5.24% and matures on the earlier and to the extent of (i) May 10, 2016 and (ii) the receipt of proceeds from the sale of the Trust's equity interest in the Newark Joint Venture or the repayment of the Newark Joint Venture loan. At December 31, 2015, the principal amount of such loan, which is eliminated in consolidation, was $19,500,000.

In the quarter ended December 31, 2015, the Newark Joint Venture borrowed $6,001,000 pursuant to the EB-5 Immigrant Investor Program. These loans bear interest at a rate of 4.00% per annum and have stated terms of five years, subject to two one-year extension options.