2. Mortgage Payable:
On August 29, 2008, the Partnership refinanced its existing mortgage note payable and executed seven new mortgages payable in the amount of $23,225,000 secured by the seven properties of the Partnership. To pay off the prior mortgage balance of $25,277,523 and the costs of refinancing, the Partnership transferred $2,735,555 from cash reserves. The mortgages are payable in monthly installments of interest and principal through September 2033. Interest on these notes is accrued at a fixed rate of 6.625% for five years, at which time, the rate will reset to the lender’s then prevailing market rate. As of June 30, 2011 the balance on these notes was $22,127,276.
The Partnership incurred $693,798 in financing costs as a result of the refinancing which is being amortized over the life of the loan. This included a 1% fee payable to an affiliate of the General Partner.
Future maturities on the note payable for the next five years and thereafter are as follows: remainder of 2011 - $221,911; 2012 - $466,432; 2013 - $498,289; 2014 - $532,321; 2015 - $568,678; and thereafter - $19,839,644.