NOTES PAYABLE

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

NOTES PAYABLE

NOTE 5. NOTES PAYABLE

Below is a summary of our notes and interest payable as of March 31, 2017 (dollars in thousands):

	Notes Payable			Accrued Interest		Total Debt
Apartments	$	541,710		$	1,417	$	543,127
Apartments under Construction		20,721			—		20,721
Commercial		108,051			532		108,583
Land		25,134			229		25,363
Real estate subject to sales contract		3,707			470		4,177
Mezzanine financing		119,422					119,422
Other		24,128			—		24,128
Total	$	842,873		$	2,648	$	845,521
Unamortized deferred borrowing costs		(18,046	)		—		(18,046	)
Total	$	824,827		$	2,648	$	827,475

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. During the three months ended March 31, 2017, we refinanced two loans with a total principal balance of $35.6 million. The transactions provided for lower monthly payments over the term of the loans due to lower interest rates and the extension of maturity dates of the loans.

In conjunction with the development of various apartment projects and other developments, we drew down $7.3 million in construction loans during the three months ended March 31, 2017.

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.