Notes Receivable

12 Months Ended

Dec. 31, 2019

7. Notes Receivable

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


	At December 31,
	2019		2018
Mezzanine loans	$	13,284	$	9,868
Other loans		4,824		2,975
Notes receivable reserve		(181)		(128)
Total	$	17,927	$	12,715

The following table summarizes our notes receivable activity for the years ended December 31, 2019 through 2017 (in thousands):


	Year ended December 31,
		2019			2018		2017
Advances under notes receivable	$	8,967	⁽¹⁾	$	124	$	—
Principal payments received under notes receivable		(3,503)			(3,848)		(25)
Reclassified to lease incentives ⁽²⁾		(200)	⁽²⁾		—		—
Notes receivable reserve		(52)			37		—
Total	$	5,212		$	(3,687)	$	(25)

(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 $1,304 with a commitment to fund $96. The note bears interest at 7.0%. Further, we originated a $550 note agreement, funding $500 with a commitment to fund $50. 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.