Debt

Mortgage Loans Payable

The Trust had outstanding non-recourse mortgage loans payable of $308,049,000 and $280,576,000 at September 30, 2013 and December 31, 2012, respectively. The mortgage loan payments of principal and interest are generally due monthly, quarterly or semi-annually and are collateralized by applicable real estate of the Trust.

On July 26, 2013 the Trust used cash on hand to fully satisfy the $14,943,000 balance outstanding on the first mortgage loan collateralized by its Amherst, New York property which was scheduled to mature in October 2013.

The Trust’s mortgage loans payable at September 30, 2013 and December 31, 2012 are summarized as follows (in thousands):


Location of Collateral	Maturity			Spread Over LIBOR (1)			Interest Rate at September 30, 2013			September 30, 2013		December 31, 2012

Memphis, TN		Aug 2014			Libor + 2.5	% (2)		3.00	%	$	13,197	$	13,408
Lisle, IL		Oct 2014			Libor + 2.5	% (3)		2.69	%		5,752		5,752
Chicago, IL		Apr 2015			—			6.25	%		8,619		8,700
Chicago, IL		Mar 2016			—			5.75	%		19,941		20,200
Houston, TX		Apr 2016			—			6.05	%		48,460		52,052
New York, NY		May 2016			Libor + 2.5	% (4)		3.50	%		51,982		51,982
Philadelphia, PA		May 2016			Libor + 2.0	% (5)		2.50	%		42,684		—
Greensboro, NC		Aug 2016			—			6.22	%		14,837		15,139
Lisle, IL		Mar 2017			—			5.55	%		5,488		5,543
Cerritos, CA		Jan 2017			—			5.07	%		23,153		23,184
Orlando, FL		Jul 2017			—			6.40	%		37,138		37,580
Plantation, FL		Apr 2018			—			6.45	%		10,717		10,811
Meriden, CT		Oct 2022			—			3.95	%		21,000		21,000
Churchill, PA (6)		Aug 2024			—			3.50	%		5,081		—
Amherst, NY			(7)		—			5.65	%		—		15,225

										$	308,049	$	280,576

(1)	The one-month LIBOR rate at September 30, 2013 was 0.17885%.

(2)	The loan has a LIBOR floor of 0.5% and an interest rate cap which caps LIBOR at 0.5%.

(3)	The loan has an interest rate cap which caps LIBOR at 1%.

(4)	The loan has a LIBOR floor of 1% and an interest rate cap which caps LIBOR at 1.75%.

(5)	The loan has an interest rate swap which effectively fixes LIBOR at 0.5%.

(6)	The loan was obtained on June 28, 2013. See Note 4 for details on this transaction.

(7)	The loan was fully satisfied on July 26, 2013.

Non-Recourse Secured Financing

The Trust’s non-recourse secured financings at September 30, 2013 and December 31, 2012 are summarized as follows (in thousands):


									Carrying Value
Collateral	Maturity		Spread Over LIBOR/ Prime			Interest Rate at September 30, 2013			September 30, 2013		December 31, 2012
Hotel Wales Loan		Oct 2014		LIBOR plus 1.25	% (1)		4.25	%	$	14,000	$	14,000
San Marbeya Loan		Jan 2015		—			4.85	%		15,150		15,150

									$	29,150	$	29,150

(1)	The loan has a LIBOR floor of 3%.

Recourse Secured Financing

The Trust’s recourse secured financing was repaid in full at September 30, 2013. Details of the recourse secured financing are as follows (in thousands):


								Carrying Value
Collateral	Maturity		Spread Over LIBOR/Prime			Interest Rate at September 30, 2013		September 30, 2013		December 31, 2012

Queensridge Loan		Nov 2014		LIBOR plus 4	%		N/A	$	—	$	23,770

								$	—	$	23,770

Notes Payable

In conjunction with the loan modification on the property located in Cerritos, California the Trust assumed a $14,500,000 B Note that bears interest at 6.6996% per annum and requires monthly interest payments of approximately $12,000 with the balance of the interest accruing. The loan modification agreement provides for a participation feature whereby the B Note can be fully satisfied with proceeds from the sale of the property after the Trust receives a 9.0% priority return on its capital during a specified time period, as defined in the loan modification document. As of September 30, 2013 the carrying value of the participating B Note was $864,000 which approximates fair value. The inputs used in determining the estimated fair value of the Trust’s Notes Payable are categorized as Level 3 in the fair value hierarchy. See Note 18 for additional information regarding this property.

On October 15, 2012 an entity in which the Trust holds an interest and consolidates, 5400 Westheimer LP, executed a note payable to its partners in the amount of $1,600,000. The note bears interest at 15% per annum and matures on October 15, 2022. Since the Trust holds 50% of the loan, $800,000 of the note payable and associated interest is eliminated in consolidation for accounting purposes. The balance of the note as of September 30, 2013 was $800,000 which approximates fair value.