Loans Receivable

9 Months Ended

Sep. 30, 2014

As of September 30, 2014 and December 31, 2013, the Partnership's loans receivable are comprised primarily of mortgage loans on real estate.

The following is a summary of the Partnership's loans receivable as of September 30, 2014 and December 31, 2013:



	Loan carrying-value⁽¹⁾
Loan	9/30/2014		12/31/2013		Interest Rate		Maturity Date
Westmont, IL⁽²⁾	$	12,326	$	12,610	6.45	%	10/2015
Southfield, MI	6,005		6,610		4.55	%	02/2015
	$	18,331	$	19,220


(1)	Loan carrying value includes accrued interest and is net of origination costs and loan losses, if any.

(2)

Borrower is delinquent on debt service payments. Tenant at office property collateral terminated its lease. The Partnership recognized an impairment of $13,939 during the fourth quarter of 2013. During the nine months ended September 30, 2014, the Partnership recognized $1,284 of interest income relating to the impaired loan and the loan had an average recorded investment value of $12,468. At September 30, 2014, the impaired loan receivable had a contractual unpaid balance of $26,265. Subsequent to September 30, 2014, the Partnership commenced a foreclosure proceeding.

The Partnership has two types of financing receivables: loans receivable and a capitalized financing lease. The Partnership determined that its financing receivables operate within one portfolio segment as they are within the same industry and use the same impairment methodology. The Partnership's loans receivable are secured by commercial real estate assets and the capitalized financing lease is for a commercial property located in Greenville, South Carolina. In addition, the Partnership assesses all financing receivables for impairment, when warranted, based on an individual analysis of each receivable.

The Partnership's financing receivables operate within one class of financing receivables as these assets (1) are collateralized by commercial real estate and (2) similar metrics are used to monitor the risk and performance of these assets. The Partnership uses credit quality indicators to monitor financing receivables such as quality of collateral, the underlying tenant's credit rating and collection experience. As of September 30, 2014, the financing receivables were performing as anticipated other than the Westmont, Illinois loan as discussed above and there were no significant delinquent amounts outstanding.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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LEPERCQ CORPORATE INCOME FUND L P 10-Q