MORTGAGE NOTES PAYABLE

12 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Mortgage Notes Payable Disclosure [Text Block]

NOTE 11 - MORTGAGE NOTES PAYABLE

Mortgage notes payable secured by real estate and hotel as of June 30, 2012 and 2011 are summarized as follows:

As of June 30, 2012
	Number	Note		Note
Property	of Units	Origination Date		Maturity Date		Mortgage Balance		Interest Rate
SF Hotel	543 rooms	July	2005	August	2015	$	26,599,000	5.22	%
SF Hotel	543 rooms	March	2005	August	2015		17,722,000	6.42	%
		Mortgage notes payable - hotel				$	44,321,000
Austin	249	June	2003	July	2023		6,872,000	5.46	%
Florence	157	June	2005	July	2014		3,878,000	4.96	%
Las Colinas	358	April	2004	May	2013		17,671,000	4.99	%
Morris County	151	April	2003	May	2013		9,010,000	5.43	%
St. Louis	264	May	2008	May	2013		5,770,000	4.95	%
Los Angeles	4	September	2000	August	2030		381,000	7.59	%
Los Angeles	2	January	2002	January	2032		388,000	6.45	%
Los Angeles	1	February	2001	December	2030		417,000	8.44	%
Los Angeles	31	January	2010	December	2020		5,660,000	4.85	%
Los Angeles	30	August	2007	September	2022		6,605,000	5.97	%
Los Angeles	27	November	2010	December	2020		3,189,000	4.85	%
Los Angeles	14	April	2011	March	2021		1,829,000	5.89	%
Los Angeles	12	December	2011	January	2022		2,081,000	4.25	%
	9	April	2011	May	2021		1,467,000	5.60	%
Los Angeles	9	April	2011	March	2021		1,247,000	5.89	%
Los Angeles	8	May	2001	November	2029		486,000	2.49	%
Los Angeles	7	November	2003	December	2018		945,000	6.38	%
Los Angeles	4	November	2003	December	2018		643,000	6.38	%
Los Angeles	1	October	2003	November	2033		445,000	4.50	%
Los Angeles	Office	March	2009	March	2014		1,078,000	5.02	%
Los Angeles	Office	September	2000	December	2013		592,000	6.00	%
		Mortgage notes payable - real estate				$	70,654,000

As of June 30, 2011
	Number	Note		Note
Property	of Units	Origination Date		Maturity Date		Mortgage Balance		Interest Rate
SF Hotel	544 rooms	July	2005	August	2015	$	27,176,000	5.22	%
SF Hotel	544 rooms	March	2005	August	2015		18,003,000	6.42	%
		Mortgage notes payable - hotel				$	45,179,000
Austin	249	June	2003	July	2023		7,041,000	5.46	%
Florence	157	June	2005	July	2014		3,950,000	4.96	%
Las Colinas	358	April	2004	May	2013		18,051,000	4.99	%
Morris County	151	April	2003	May	2013		9,220,000	5.43	%
St. Louis	264	May	2008	May	2013		5,878,000	4.95	%
Los Angeles	4	September	2000	August	2030		390,000	7.59	%
Los Angeles	2	January	2002	January	2032		398,000	6.45	%
Los Angeles	1	February	2001	December	2030		426,000	8.44	%
Los Angeles	31	January	2010	December	2020		5,745,000	4.85	%
Los Angeles	30	August	2007	September	2022		6,699,000	5.97	%
Los Angeles	27	November	2010	December	2020		3,236,000	4.85	%
Los Angeles	14	April	2011	March	2021		1,850,000	5.89	%
Los Angeles	12	November	2003	December	2018		934,000	6.38	%
	9	April	2011	May	2021		1,485,000	5.60	%
Los Angeles	9	April	2011	March	2021		1,262,000	5.89	%
Los Angeles	8	May	2001	November	2029		506,000	2.49	%
Los Angeles	7	November	2003	December	2018		965,000	6.38	%
Los Angeles	4	November	2003	December	2018		657,000	6.38	%
Los Angeles	1	October	2003	November	2033		459,000	4.50	%
Los Angeles	Office	March	2009	March	2014		1,118,000	5.02	%
Los Angeles	Office	September	2000	December	2013		627,000	6.00	%
		Mortgage notes payable - real estate				$	70,897,000
Los Angeles	24	May	2001	April	2031		1,540,000	2.49	%
		Mortgage notes payable - properties held for sale				$	1,540,000

On July 27, 2005, Justice entered into a first mortgage loan with The Prudential Insurance Company of America in a principal amount of $30,000,000 (the “Prudential Loan”). The term of the Prudential Loan is for 120 months at a fixed interest rate of 5.22% per annum. The Prudential Loan calls for monthly installments of principal and interest in the amount of approximately $165,000, calculated on a 30-year amortization schedule. The Loan is collateralized by a first deed of trust on the Partnership’s Hotel property, including all improvements and personal property thereon and an assignment of all present and future leases and rents. The Prudential Loan is without recourse to the limited and general partners of Justice.

In March 2007, Justice entered into a second mortgage loan with The Prudential Insurance Company of America (the “Second Prudential Loan”) in a principal amount of $19,000,000. The term of the Second Prudential Loan is for approximately 100 months and matures on August 5, 2015, the same date as the Partnership’s first mortgage loan with Prudential. The Second Prudential Loan is at a fixed interest rate of 6.42% per annum and calls for monthly installments of principal and interest in the amount of approximately $119,000, calculated on a 30-year amortization schedule. The Loan is collateralized by a second deed of trust on the Partnership’s Hotel property, including all improvements and personal property thereon and an assignment of all present and future leases and rents. The Loan is without recourse to the limited and general partners of Justice.

In December 2011, the Company refinanced its $926,000 mortgage note payable on its 12-unit apartment building located in Los Angeles, California for a new 10-year mortgage in the amount of $2,095,000. The interest rate on the new loan is fixed at 4.25% per annum for the first 5 years and variable for the remaining 5 years, with monthly principal and interest payments based on a 30-year amortization schedule. The note matures in January 2022. The Company received net proceeds of approximately $1,122,000 from the refinancing.

In February 2011, the Company refinanced its $715,000 adjustable rate mortgage note payable on its 9-unit apartment building located in Los Angeles, California for a new 10-year fixed rate mortgage in the amount of $1,265,000. The interest rate on the new loan is fixed at 5.89% per annum, with monthly principal and interest payments based on a 30-year amortization schedule. The note matures in March 2021. The Company received net proceeds of approximately $367,000 from the refinancing.

In February 2011, the Company refinanced its $958,000 adjustable rate mortgage note payable on its 14-unit apartment building located in Los Angeles, California for a new 10-year fixed rate mortgage in the amount of $1,855,000. The interest rate on the new loan is fixed at 5.89% per annum, with monthly principal and interest payments based on a 30-year amortization schedule. The note matures in March 2021. The Company received net proceeds of approximately $687,000 from the refinancing.

In December 2010, the Company modified its $5,932,000 mortgage note payable on the property located in St. Louis, Missouri. Prior to the modification of the mortgage note, the Company paid a fixed rate of 6.16%. Upon modification, the interest rate was based upon LIBOR (London Interbank Offered Rate) plus 3.5%. Concurrent to the modification of the note, the Company entered into a rate swap agreement in order to settle the variable rate (i.e., LIBOR) into a fixed rate of 1.35%, thereby allowing the Company to pay a total fixed interest rate of 4.85%. The swap agreement matures in May 2013. A swap is a contractual agreement to exchange interest rate payments. Under the swap agreement, the Company agrees to pay the bank (counterparty) a fixed rate and the bank agrees to pay the Company a floating rate. The interest rate swap agreement is being measured at fair value, but was not designated by the Company as a cash flow hedge. Should the Company terminate the swap contract prematurely, it would be required to pay the fair value of the swap valued at $60,000 as of June 30, 2012, which is recorded as a liability by the Company under “accounts payable and other liabilities” in the consolidated balance sheet. The change in the fair value of the instrument is recognized and recorded in the “net unrealized gain (loss) on other investments and derivative instruments” in the consolidated statement of operations.

In November 2010, the Company refinanced its $1,641,000 adjustable rate mortgage note payable on its 27-unit apartment building located in Los Angeles, California for a new 10-year fixed rate mortgage in the amount of $3,260,000. The interest rate on the new loan is fixed at 4.85% per annum, with monthly principal and interest payments based on a 30-year amortization schedule. The note matures in December 2020. The Company received net proceeds of approximately $1,507,000 from the refinancing.

In November 2010, the Company also refinanced its $3,569,000 adjustable rate mortgage note payable on its 31-unit apartment building located in Los Angeles, California for a new 10-year fixed rate mortgage in the amount of $5,787,000. The interest rate on the new loan is fixed at 4.85% per annum, with monthly principal and interest payments based on a 30-year amortization schedule. The note matures in December 2020. The Company received net proceeds of approximately $2,078,000 from the refinancing.

Future minimum payments for all notes payable are as follows: 

For the year ending June 30,
2013	$	2,792,000
2014		3,467,000
2015		1,741,000
2016		42,192,000
2017		794,000
Thereafter		66,061,000
	$	117,047,000