7.	Loans Receivable

The Trust’s loans receivable at March 31, 2015 and December 31, 2014 are as follows (in thousands):


			Carrying Amount (1)				Contractual Maturity Date
Description	Loan Position	Stated Interest Rate March 31, 2015	March 31, 2015		December 31, 2014		Contractual Maturity Date
Churchill	Whole Loan	LIBOR + 3.75%	$	—	$	—		06/01/15
Rockwell	Mezzanine	12.0%		—		—		05/01/16
Popiu Shopping Village	B-Note	6.62%		2,795		2,804		01/06/17
Edens Center and Norridge Commons (2)	Mezzanine	LIBOR + 12% (3)		3,158		18,690		03/09/17
Mentor Building	Whole Loan	10.0%		2,511		2,511		09/10/17

			$	8,464	$	24,005

(1)	The carrying amount represents the estimated amount expected to be collected on disposition of the loan plus contractual interest receivable.

(2)	Carrying amount includes the par amount plus the estimated amount to be collected on the participation interest of $3,000 and accrued interest of $1.

(3)	LIBOR floor of 0.5%.

Edens Center and Norridge Commons – On February 5, 2015 the Norridge, Illinois property that collateralized this loan receivable was sold and the Trust received a principal payment of $15,275,000 plus all accrued and unpaid interest due in connection with the sale. The outstanding principal balance on the loan receivable was $157,000 at March 31, 2015. Upon satisfaction of the loan, the Trust is entitled to a participation interest equal to the greater of (i) a 14.5% internal rate of return (“IRR”) (increasing to a 15.5% IRR after March 9, 2017) and (ii) 30% (increasing to 40% after March 9, 2017 and 50% after March 9, 2018) of the value of the properties in excess of $115,000,000.

The carrying amount of loans receivable at March 31, 2015 and December 31, 2014 includes accrued interest of $29,000 and $218,000, respectively.

The weighted average coupon as calculated on the par value of the Trust’s loans receivable was 8.09% and 10.55% at March 31, 2015 and December 31, 2014, respectively and the weighted average yield to maturity as calculated on the carrying value of the Trust’s loan receivable was 13.85% and 12.78% at March 31, 2015 and December 31, 2014, respectively.

Loan Receivable Activity

Activity related to loans receivable is as follows (in thousands):


	Three Months Ended			Three Months Ended
	March 31, 2015			March 31, 2014
Balance at beginning of period	$	24,005		$	101,100
Purchase and advances		—			21,992
Interest (received) accrued, net		(189	)		(159	)
Repayments/Sale proceeds/forgiveness		(15,352	)		(69,606	)
Loan discount accretion		—			1,205
Discount accretion received in cash		—			(5,865	)

Balance at end of period	$	8,464		$	48,667

The following table summarizes the Trust’s interest and discount accretion income for the three months ended March 31, 2014 (in thousands):


	Three Months Ended
	March 31, 2014
Interest on loan assets	$	2,505
Exit fee/prepayment peanlty		1,787
Accretion of loan discount		1,205

Total interest and discount accretion	$	5,497

Non-Performing Loans

Prior to adopting the liquidation basis of accounting, the Trust considered a loan to be non-performing and placed loans on non-accrual status at such time as management determined it was probable that it would be unable to collect all amounts due according to the contractual terms of the loan. While on non-accrual status, based on the Trust’s judgment as to collectability of principal, loans were either accounted for on a cash basis, where interest income was recognized only upon actual receipt of cash, or on a cost-recovery basis, where all cash receipts reduced a loan’s carrying value.

As of March 31, 2014, there was one non-performing loan with past due payments. The Trust did not record any provision for loan loss for the three months ended March 31, 2014.

Secured Financing Receivable

In August 2013 the Trust closed on an agreement to acquire its venture partner’s (“Elad”) 50% interest in the mezzanine lender with respect to the One South State Street, Chicago, Illinois property (“Lender LP”) for $30,000,000. In connection with the transaction, the Trust entered into an option agreement with Elad granting Elad the right, but not obligation, to repurchase the interest in the venture. The option agreement provides Elad, as the transferor, the option to unilaterally cause the return of the asset at the earlier of two years from August 21, 2013 or an event of default on Lender LP’s mezzanine debt. As such, Elad is able to retain control of its interest in Lender LP for financial reporting purposes as the exercise of the option is unconditional other than for the passage of time. As a result, for financial reporting purposes, the transfer of the financial asset is accounted for as a secured financing rather than an acquisition. The $30,000,000 acquisition price is recorded as a secured financing receivable. Under the going concern basis of accounting, the Trust recognized interest income on the secured financing receivable on an accrual basis in accordance with GAAP, at an annual interest rate of 15%. The Trust recorded $941,000 of interest income during the three months ended March 31, 2014.