7.	Loans Receivable

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


				Carrying Amount (1)
Description	Loan Position	Stated Interest Rate September 30, 2015		September 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%			2,778		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%			2,510		2,511		09/10/17

				$	8,386	$	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. The loan was repaid in full on October 9, 2015.

(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 September 30, 2015. Upon satisfaction of the loan, the Trust was entitled to a participation interest equal to 30% of the value of both of the properties which collateralized the loan in excess of $115,000,000. On October 9, 2015 the Trust received $3,100,000 in full satisfaction of the loan receivable and the participation interest.

The carrying amount of loans receivable at September 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 8.05% and 10.55% at September 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 September 30, 2015 and December 31, 2014, respectively.

Loan Receivable Activity

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


	Nine Months Ended September 30, 2015			Nine Months Ended September 30, 2014

Balance at beginning of period	$	24,005		$	101,100
Purchase and advances		—			35,992
Interest received, net		(191	)		(81	)
Repayments/sale proceeds/forgiveness		(15,428	)		(81,739	)
Loan discount accretion		—			2,086
Discount accretion received in cash		—			(5,865	)
Adjustment for conversion to liquidation basis		—			6,071
Change in liquidation value		—			4,750

Balance at end of period	$	8,386		$	62,314

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


	One Month Ended July 31, 2014		Seven Months Ended July 31, 2014

Interest on loan assets	$	899	$	5,770
Exit fee/prepayment penalty		—		1,787
Accretion of loan discount		495		2,086

Total interest and discount accretion	$	1,394	$	9,643

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 July 31, 2014, there was one non-performing loan with past due payments. The Trust did not record any provision for loan loss for the one and seven months ended July 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 any time at the earlier of two years from and after 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 $324,000 and $2,215,000 of interest income during the one and seven months ended July 31, 2014.