NOTES AND INTEREST PAYABLE

9 Months Ended

Sep. 30, 2015

NOTES AND INTEREST PAYABLE

NOTES AND INTEREST PAYABLE

NOTE 4. NOTES AND INTEREST PAYABLE

The following table lists the mortgage notes payable as of September 30, 2015 (dollars in thousands):

Lender	Maturity		Principal Balance
Realty Advisors, Inc - related party	12/30/16	$	9,581

The balance outstanding is net of $0.08 million of unamortized deferred cost at September 30, 2015.

On December 31, 2013, Realty Advisors, Inc. (“RAI”), a related party, obtained a $20 million mortgage on the Company’s behalf, secured by land owned by the Company and 100.05 acres of land owned by TCI. The Company and TCI have executed a promissory note to RAI for the same terms as the original loan with a maturity of December 30, 2016, and a variable interest rate of prime plus 1.5% with an interest rate floor of 6%. On May 28, 2014, a $1.5 million principal payment was made and two additional land parcels, including 8.0 acres of land owned by TCI and 16.75 acres of land owned by ARL, were substituted as collateral under the note in exchange for a release of a $4 million deposit account. The principal balance is allocated based on the land valuation.