Notes Receivable

9 Months Ended

Sep. 30, 2020

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, 2020 and December 31, 2019 (in thousands):


	September 30, 2020		December 31, 2019
Mezzanine loans	$	8,566	$	13,284
Other loans		5,875		4,824
Notes receivable reserve		(144)		(181)
Total	$	14,297	$	17,927

The following table summarizes our notes receivable activity for the nine months ended September 30, 2020 and 2019 (in thousands):


	Nine Months Ended September 30,
		2020			2019
Advances under notes receivable	$	1,366	⁽¹⁾	$	8,531	⁽²⁾
Principal payments received under notes receivable		(4,732)			(3,446)
Reclassified to lease incentives		(300)	⁽³⁾		(200)	⁽³⁾
Notes receivable reserve		36			(48)
Total	$	(3,630)		$	4,837

(1)	We originated a $1,250 note agreement, funding $1,000 with a commitment to fund $250. The note bears interest at 5.0%.

(2)

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%.

(3)	Represents interim working capital loans related to development projects which matured upon completion of the development projects and commencement of the master leases.