6.	Mortgages Payable

As part of the $364.2 million invested in new properties during the first six months of 2011, we assumed $58.6 million of mortgages payable to third-party lenders. These mortgages are secured by the properties on which the debt was placed and are non-recourse. We expect to pay off the mortgages as soon as prepayment penalties and costs make it economically feasible to do so. We intend to continue our policy of primarily identifying property acquisitions that are free from mortgage indebtedness.

In aggregate, net premiums totaling $957,000 were recorded upon assumption of the mortgages at the time of the respective property acquisition to account for above-market interest rates. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective notes, using a method that approximates the effective-interest method. These mortgages contain customary covenants, such as limiting our ability to further mortgage each applicable property or to discontinue insurance coverage, without the prior consent of the lender.

As a result of assuming these mortgages payable, we incurred deferred financing costs of $592,000 that were classified as part of "other assets" on our consolidated balance sheet at June, 30, 2011, and are being amortized over the remaining term of the mortgages.

The following is a summary of our mortgages payable as of June 30, 2011 (principal balance, unamortized premiums (discounts) and mortgage payable balances in thousands):

Tenant Name	Stated Interest Rate(1)			Effective Interest Rate			Maturity Date(2)	Principal Balance(2)		Unamortized Premium (Discount)			Mortgage Payable Balance
Aviall Services, Inc. (3)		6.25	%		4.95	%	12/1/13	$	12,612	$	458		$	13,070
Aviall Services, Inc. (3)		6.25	%		4.81	%	9/1/14		11,748		377			12,125
T-Mobile USA, Inc.		5.89	%		5.14	%	5/6/14		10,664		201			10,865
MeadWestvaco Corporation		4.69	%		4.85	%	6/10/15		23,625		(79	)		23,546
								$	58,649	$	957		$	59,606

(1) With the exception of the MeadWestvaco Corporation mortgage, the mortgages are at fixed interest rates. The MeadWestvaco Corporation mortgage is at a floating variable interest rate calculated as the sum of the current 1 month LIBOR plus 4.50%, not to exceed an all-in interest rate of 5.5%, based on an interest rate novation agreement entered in connection with this mortgage.

(2) The mortgages generally require monthly payments, with a principal payment due at maturity.

(3) There are two mortgages associated with one property occupied by Aviall Services, Inc.