NOTES PAYABLE

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

NOTES PAYABLE

NOTE 5. NOTES PAYABLE

Below is a summary of our notes and interest payable as of September 30, 2016 (dollars in thousands):

	Notes Payable			Accrued Interest			Total Debt
Apartments	$	549,744		$	1,530		$	551,274
Commercial		109,139			499			109,638
Land		30,938			117			31,055
Real estate held for sale		376			—			376
Real estate subject to sales contract		5,345			470			5,815
Mezzanine financing		136,400			(66	)		136,334
Other		8,477			—			8,477
Total	$	840,419		$	2,550		$	842,969
Unamortized deferred borrowing costs		(19,510	)		—			(19,510	)
Total	$	820,909		$	2,550		$	823,459

The segment labeled as “Other” consists of unsecured or stock-secured notes payable.

There are various land mortgages, secured by the property, that are in the process of a modification or extension to the original note due to expiration of the loan. We are in constant contact with these lenders, working together in order to modify the terms of these loans and we anticipate a timely resolution that is similar to the existing agreement or subsequent modification.

In conjunction with the development of various apartment projects and other developments, we drew down $16.5 million in construction loans during the nine months ended September 30, 2016.

The properties that we have sold to a related party and have deferred the recognition of the sale are treated as “subject to sales contract” on the Consolidated Balance Sheets. These properties were sold to a related party in order to help facilitate an appropriate debt or organizational restructure and may or may not be transferred back to the seller upon resolution. These properties have mortgages that are secured by the property and many have corporate guarantees. According to the loan documents, the maker is currently in default on these mortgages primarily due to lack of payment and is actively involved in discussions with every lender in order to settle or cure the default situation. We have reviewed each asset and taken impairment to the extent we feel the value of the property was less than our current basis.