Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

16. Subsequent Events

Lake Brandt—On June 11, 2012, a wholly-owned subsidiary of the Trust entered into an agreement to acquire a 284 unit multi-family property for an aggregate purchase price of $17,500,000. The property, which is located in Greensboro, North Carolina, is presently 94% occupied. In connection with this acquisition, it is expected that the subsidiary will assume the existing $13,600,000 non-recourse mortgage loan which bears interest at 6.22% per annum, matures on August 1, 2016 and requires payments of interest only. The closing is expected to occur in September or October 2012.

223 West Jackson – On July 2, 2012, the Trust and Marc Realty each contributed $3,524,000 to our joint venture investment in this property. The proceeds were used to pay off the existing first mortgage loan collateralized by this property.

Waterford Place—On July 19, 2012, the Trust obtained a $13,500,000 first mortgage loan secured by its Memphis, Tennessee (Waterford Place) property that was acquired on April 17, 2012 for approximately $21,473,000. The loan bears interest at LIBOR plus 2.50% with a LIBOR floor of 0.50%, requires monthly principal and interest payments of $57,000 and matures on August 1, 2014, subject to two, one-year extensions. The Trust purchased an interest rate cap which caps LIBOR at 0.50%. The loan will have an outstanding balance at the initial maturity date of $12,928,000.

Bond Offering—On August 7, 2012, the Trust commenced a public offering of its 7.75% senior notes due 2022 (the “Notes”). The aggregate amount of the Notes to be issued in the offering will be $75,000,000, subject to increase to $86,250,000 to cover over-allotments. The Trust will be required to pay quarterly interest on the Notes commencing November 15, 2012, and the Trust may redeem the Notes, in whole or in part, at any time or from time to time on or after August 15, 2015 at a redemption price in cash equal to 100% of the principal amount redeemed plus accrued and unpaid interest to, but not including, the redemption date. The closing of the Notes offering is expected to occur on August 15, 2012. The Trust estimates that the net proceeds from the Notes offering, after deducting the underwriting discounts and commissions and estimated offering expenses payable by the Trust, will be approximately $72,250,000, or approximately $83,163,000 if the underwriters’ overallotment option is exercised in full.

10 Metrotech—On August 6, 2012, 10 Metrotech JV acquired at a discount the $39,400,000 senior participation in the Metrotech Loan. As a result, 10 Metrotech JV now holds the entire mortgage loan. Following consummation of the acquisition, 10 Metrotech JV entered into a forbearance agreement with the borrower pursuant to which, among other things, (i) the interest rate on the loan was increased to 9%, (ii) the principal amount of the loan was reset to $40,000,000 and (iii) 10 Metrotech JV agreed to forbear from foreclosing on the property pursuant to current maturity default for two years, subject to any further defaults by the borrower. In connection with the acquisition of the senior participation, the Trust made an additional capital contribution of $10,840,000 to Metrotech JV.