NOTE 11 - MORTGAGE NOTES PAYABLE

Mortgage notes payable secured by real estate and hotel as of June 30, 2013 and 2012 are summarized as follows:

	As of June 30, 2013

	Number	Note		Note
Property	of Units	Origination Date		Maturity Date		Mortgage Balance		Interest Rate

SF Hotel	543 rooms	July	2005	August	2015	$	26,043,000	5.22	%
SF Hotel	543 rooms	March	2005	August	2015		17,370,000	6.42	%

		Mortgage notes payable – hotel				$	43,413,000

Austin	249	June	2003	July	2023	$	6,694,000	5.46	%
Florence	157	June	2005	July	2014		3,802,000	4.96	%
Las Colinas	358	November	2012	December	2022		19,326,000	3.73	%
Morris County	151	July	2012	July	2022		10,556,000	3.51	%
St. Louis	264	May	2013	May	2023		6,045,000	4.05	%
Los Angeles	4	September	2012	September	2042		390,000	4.25	%
Los Angeles	2	September	2012	September	2042		395,000	4.25	%
Los Angeles	1	August	2012	September	2042		425,000	4.25	%
Los Angeles	31	January	2010	December	2020		5,570,000	4.85	%
Los Angeles	30	August	2007	September	2022		6,505,000	5.97	%
Los Angeles	27	November	2010	December	2020		3,138,000	4.85	%
Los Angeles	14	April	2011	March	2021		1,805,000	5.89	%
Los Angeles	12	December	2011	January	2022		2,045,000	4.25	%
Los Angeles	9	April	2011	May	2021		1,447,000	5.60	%
Los Angeles	9	April	2011	March	2021		1,230,000	5.89	%
Los Angeles	8	May	2001	November	2029		466,000	2.49	%
Los Angeles	7	August	2012	September	2042		967,000	3.85	%
Los Angeles	4	August	2012	September	2042		661,000	3.85	%
Los Angeles	1	September	2012	September	2042		453,000	4.25	%
Los Angeles	Office	March	2009	March	2014		1,036,000	5.02	%
Los Angeles	Office	September	2000	December	2013		556,000	6.00	%

		Mortgage notes payable - real estate				$	73,512,000

	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	%
Los Angeles	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

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 May 2013, the Company refinanced its $5,671,000 mortgage note payable on its 264-unit apartment building located in St. Louis, Missouri for a new 10-year mortgage in the amount of $6,045,000. The interest rate on the new loan is fixed at 4.05% per annum for ten years, with monthly principal and interest payments based on a 30-year amortization schedule. The note matures in May 2023.

In November 2012, the Company refinanced its $17,509,000 mortgage note payable on its 358-unit apartment building located in Las Colinas, Texas for a new 10-year mortgage in the amount of $19,500,000. The interest rate on the new loan is fixed at 3.73% per annum for ten years, with monthly principal and interest payments based on a 30-year amortization schedule. The note matures in December 2022. The Company received net proceeds of approximately $529,000 from the refinancing.

In September 2012, the Company refinanced its $388,000 adjustable rate mortgage note payable on its 2-unit apartment located in Los Angeles, California for a new 30-year fixed rate mortgage in the amount of $400,000. The interest rate on the new loan is 4.25% per annum. The note matures in September 2042.

In July 2012, the Company refinanced its $9,010,000 mortgage note payable on its 151-unit apartment building located in Morris County, New Jersey for a new 10-year mortgage in the amount of $10,780,000. The interest rate on the new loan is fixed at 3.51% per annum for ten years, with monthly principal and interest payments based on a 25-year amortization schedule. The note matures in August 2022. The Company received net proceeds of approximately $1,513,000 from the refinancing.

In August 2012, the Company refinanced two mortgages on two properties located in Los Angeles, California with mortgage note payable balances totaling $1,583,000 for two new 30-year mortgages totaling $1,650,000. The interest rate on the two loans is fixed at 3.85% for the first five years and variable thereafter, with monthly principal and interest payments based on a 30-year amortization schedule. The notes mature in September 2042.

In August 2012, the Company refinanced three mortgages on three properties located in Los Angeles, California with mortgage note payable balances totaling $1,243,000 for three new 30-year mortgages totaling $1,285,000. The interest rate on the three loans is fixed at 4.25% for the first five years and variable thereafter, with monthly principal and interest payments based on a 30-year amortization schedule. The notes mature in September 2042.

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.

Future minimum payments for all notes payable are as follows:

For the year ending June 30,
2014	$	3,901,000
2015		7,787,000
2016		43,015,000
2017		1,649,000
2018		1,716,000
Thereafter		60,452,000
	$	118,520,000