Loans and Mortgages Payable

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Loans and Mortgages Payable

NOTE 5 – LOANS AND MORTGAGES PAYABLE

On January 7, 2016, the Company obtained a $7,200,000 mortgage loan on Woods Edge from OceanFirst Bank. This mortgage is at a fixed rate of 4.3% and matures on January 7, 2026. The interest rate will be reset after five years to the rate the Federal Home Loan Bank of New York charges to its members plus 2.5%.

On May 2, 2016, the Company obtained a $4,760,000 Freddie Mac mortgage through Wells Fargo on Waterfalls Village with an interest rate that is fixed at 4.38%. The Company also obtained a $3,498,000 Freddie Mac mortgage through Wells Fargo on Valley Hills with an interest rate that is fixed at 4.32%. These mortgages mature on June 1, 2026, with principal repayments based on a 30-year amortization schedule. Proceeds from these mortgages were used to repay existing mortgages on three communities with an average interest rate of 6.66%.

The following is a summary of our mortgages payable as of September 30, 2016 and December 31, 2015:

	9/30/2016						12/31/2015
	Amount			Rate			Amount			Rate
Fixed rate mortgages	$	277,205,883			4.4	%	$	274,542,499			4.5	%
Variable rate mortgages (1)		11,259,998			3.9	%		12,094,597			3.9	%
Total mortgages before unamortized debt issuance costs		288,465,881			4.4	%		286,637,096			4.5	%
Unamortized debt issuance costs		(3,445,316	)					(3,587,294	)
Mortgages, net of unamortized debt issuance costs	$	285,020,565			4.5	%	$	283,049,802			4.6	%

⁽¹⁾ Includes a variable rate mortgage with a balance of $10,823,092 and $11,416,309 as of September 30, 2016 and December 31, 2015, respectively, which has been effectively fixed at an interest rate of 3.89% with an interest rate swap agreement.

Loans Payable includes unamortized debt issuance costs of $76,902 and $124,297 at September 30, 2016 and December 31, 2015, respectively. The weighted average interest rate was 3.4% and 3.8% at September 30, 2016 and December 31, 2015, respectively. At September 30, 2016, $16,533,268 was outstanding on the margin loan at a 2.0% interest rate.