Notes Receivable

9 Months Ended

Sep. 30, 2019

4.	Notes Receivable

Notes receivable consists of mezzanine loans and other loan arrangements. The following table is a summary of our notes receivable components as of September 30, 2019 and December 31, 2018 (in thousands):


	At September 30, 2019		At December 31, 2018
Mezzanine loans	$	13,284	$	9,868
Other loans		4,445		2,975
Notes receivable reserve		(177)		(128)
Total	$	17,552	$	12,715

The following tables summarizes our notes receivable activity for the nine months ended September 30, 2019 and 2018 (dollar amounts in thousands):


	Nine Months Ended September 30,
		2019			2018
Advances under notes receivable	$	8,531	⁽¹⁾	$	50
Principal payments received under notes receivable		(3,446)			(3,848)
Reclassified to lease incentives ⁽²⁾		(200)	⁽²⁾		—
Notes receivable reserve		(48)			38
Total	$	4,837		$	(3,760)

(1)

We originated a $6,800 mezzanine loan commitment for the development of a 204-unit ILF/ALF/MC in Georgia. The mezzanine loan has a five-year term and a 12.0% return, a portion of which is paid in cash, and the remaining portion of which is deferred during the first 46 months. Additionally, we originated a $1,400 note agreement, funding $1,124 with a commitment to fund $276. The note bears interest at 7.0%. Further, we originated a $550 note agreement, funding $400 with a commitment to fund $150. The note bears interest at 7.5%.

(2)	Represents an interim working capital loan related to a development project which matured upon completion of the development project and commencement of the lease.