7.	Loans Receivable

The Trust’s loans receivable at June 30, 2015 and December 31, 2014 are as follows (in thousands):


			Carrying Amount (1)
Description	Loan Position	Stated Interest Rate June 30, 2015	June 30, 2015		December 31, 2014		Contractual Maturity Date

Rockwell	Mezzanine	12.0%	$	—	$	—		05/01/16
Churchill	Whole Loan	LIBOR + 3.75%		—		—		08/01/16
Popiu Shopping Village	B-Note	6.62%		2,786		2,804		01/06/17
Edens Center and Norridge Commons (2)	Mezzanine	LIBOR + 12% (3)		3,098		18,690		03/09/17
Mentor Building	Whole Loan	10.0%		2,511		2,511		09/10/17

			$	8,395	$	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, which was one of the two properties 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 $97,000 at June 30, 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 both of the properties which collateralized the loan in excess of $115,000,000. The Edens Center property continues to collateralize the loan.

The carrying amount of loans receivable at June 30, 2015 and December 31, 2014 includes accrued interest of $27,000 and $218,000, respectively.

The weighted average coupon as calculated on the par value of the Trust’s loans receivable was 8.04% and 10.55% at June 30, 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 13.73% and 12.78% at June 30, 2015 and December 31, 2014, respectively.

Loan Receivable Activity

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


	Six Months Ended June 30, 2015			Six Months Ended June 30, 2014

Balance at beginning of period	$	24,005		$	101,100
Purchase and advances		—			21,992
Interest received, net		(191	)		(44	)
Repayments/sale proceeds/forgiveness		(15,419	)		(74,157	)
Loan discount accretion		—			1,591
Discount accretion received in cash		—			(5,865	)

Balance at end of period	$	8,395		$	44,617

The following table summarizes the Trust’s interest and discount accretion income for the three and six months ended June 30, 2014 (in thousands):


	Three Months Ended June 30, 2014		Six Months Ended June 30, 2014

Interest on loan assets	$	2,366	$	4,871
Exit fee/prepayment penalty		—		1,787
Accretion of loan discount		386		1,591

Total interest and discount accretion	$	2,752	$	8,249

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 June 30, 2014, there was one non-performing loan with past due payments. The Trust did not record any provision for loan loss for the three and six months ended June 30, 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 $951,000 and $1,892,000 of interest income during the three and six months ended June 30, 2014, respectively.