Notes Receivable

12 Months Ended

Dec. 31, 2013

Notes Receivable

Notes Receivable

7. Notes Receivable

        During 2013, we received $3,035,000 for the early repayment of two loans with interest rates ranging from 8.5% to 9.0%. Also during 2013, we committed to fund three loans up to $400,000 each with interest at 12%. Two of these loans mature in September 2017 and one matures in December 2017. We also committed to fund three pre-development loans of $325,000 each to facilitate the site selection and pre-construction services for the future development of three memory care properties. The initial rate of each of these pre-development loans is 12%, increasing by 25 basis points per year. Each of these pre-development loans matured due to the acquisition of the land and the outstanding balance of $479,000 was reclassified to real estate under development during 2013.

        As of December 31, 2013, we have seven loans and line of credit agreements with a total commitment of $2,425,000 and a remaining commitment balance of $1,830,000. The average interest rate of these loans is 11.5%. During 2013, 2012, and 2011, we received principal payments, including loan payoffs, of $3,110,000, $569,000, and $731,000, respectively, and we advanced principal of $1,004,000, $2,930,000, and $232,000, respectively.