Mortgage Notes Payable
|9 Months Ended|
Sep. 30, 2011
|Mortgage Notes Payable [Abstract]|
|Mortgage Notes Payable||
NOTE 4: MORTAGE NOTES PAYABLE
On August 30, 2011, we assumed a $22.6 million mortgage note as partial consideration for the acquisition of Olney Village Center. This mortgage note bears interest at 6.37% per annum. The fair value interest rate on this mortgage note is 4.94%, based on quotes obtained for similar loans. We recorded the mortgage at its fair value of $24.4 million. Principal and interest are payable monthly until November 1, 2023, at which time all unpaid principal and interest are payable in full.
On September 15, 2011, we assumed a $54.1 million mortgage note as partial consideration for the acquisition of John Marshall II. This mortgage note bears interest at 5.79% per annum, which approximates its fair value interest rate, based on quotes obtained for similar loans. Principal and interest are payable monthly until May 6, 2016, at which time all unpaid principal and interest are payable in full.
On September 1, 2011, we repaid without penalty the remaining $9.1 million of principal on the mortgage note secured by Shady Grove Medical Village II.
Subsequent to the end of 2011 Quarter, on October 5, 2011, we entered into an amendment to the purchase and sale agreement for 6100 Columbia Park Road and Dulles Business Park , under which we agreed to seek prepayment of the mortgage notes secured by Dulles Business Park prior to closing the sale. Under the terms of the amendment, if we prepaid the mortgage notes prior to November 1, 2011, then the sales price would be increased by $875,000 in order to partially offset the penalties incurred by us for the prepayment of the mortgage notes. On October 7, 2011, we prepaid the remaining $17.9 million of principal on the mortgage notes, incurring prepayment penalties of approximately $1.0 million. Because Dulles Business Park is considered held for sale as of September 30, 2011 (see note 3 to the consolidated financial statements), these mortgage notes are included in "Other liabilities related to properties sold or held for sale" on the consolidated balance sheets.