MORTGAGE NOTES PAYABLE

12 Months Ended

Jun. 30, 2013

Mortgage Notes Payable Disclosure [Text Block]

NOTE 10 – MORTGAGE NOTES PAYABLE

Each mortgage note payable is secured by its respective land and building. As of June 30, 2013 and 2012, the Company had the following mortgages:

June 30, 2013		June 30, 2012		Interest Rate	Origination Date	Maturity Date

$	26,043,000	$	26,599,000	Fixed 5.22%	July 27, 2005	August 5, 2015
	17,370,000		17,722,000	Fixed 6.42%	March 27, 2007	August 5, 2015

$	43,413,000	$	44,321,000	Total mortgage notes payable - hotel

$	3,138,000	$	3,189,000	Fixed 4.85%	November 4, 2010	December 1, 2020
	395,000		388,000	Fixed 4.25%	September 1, 2012	September 1, 2042

$	3,533,000	$	3,577,000	Total mortgage notes payable - real estate

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 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.

Future minimum payments for all notes payable are as follows:

For the year ending June 30,
2014	$	2,415,000
2015		1,139,000
2016		41,552,000
2017		123,000
2018		123,000
Thereafter		3,189,000
	$	48,541,000