Notes Payable

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

6. Notes Payable

The Operating Partnership has in place an $85,000,000 unsecured revolving credit facility (“Credit Facility”), which is guaranteed by the Company. Subject to customary conditions, at the Company’s option, total commitments under the Credit Facility may be increased up to an aggregate of $135,000,000. The Company intends to use borrowings under the Credit Facility for general corporate purposes, including working capital, development and acquisition activities, capital expenditures, repayment of indebtedness or other corporate activities. In December 2012, the Company entered into an amendment to the Credit Facility which extended the maturity and provided for a reduction in the interest rate. The Credit Facility matures on October 26, 2015, and may be extended, at the Company’s election, for two one-year terms to October 26, 2017, subject to certain conditions. Borrowings under the Credit Facility bear interest at LIBOR plus a spread of 150 to 215 basis points depending on the Company’s leverage ratio. As of December 31, 2012, $43,530,005 was outstanding under the Credit Facility bearing a weighted average interest rate of 2.39%, and $41,469,995 was available for borrowing (subject to customary conditions to borrowing). At December 31, 2011, $56,443,898 was outstanding under the Credit Facility bearing a weighted average interest rate of 2.18%.

The Credit Facility contains customary covenants, including, among others, financial covenants regarding debt levels, total liabilities, tangible net worth, fixed charge coverage, unencumbered borrowing base properties, and permitted investments. The Company was in compliance with the covenant terms at December 31, 2012 and 2011.