| Mortgages, Loans Payable And Other Obligations |
10. MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS
The Company has mortgages, loans payable and other obligations which primarily consist of various loans collateralized by certain of the Company’s rental properties. As of June 30, 2014, 27 of the Company’s properties, with a total book value of approximately $879 million, are encumbered by the Company’s mortgages and loans payable. Payments on mortgages, loans payable and other obligations are generally due in monthly installments of principal and interest, or interest only. Except as noted below, the Company was in compliance with its debt covenants as of June 30, 2014.
A summary of the Company’s mortgages, loans payable and other obligations as of June 30, 2014 and December 31, 2013 is as follows: (dollars in thousands)
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Effective
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June 30,
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December 31,
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Property Name
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Lender
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Rate (a)
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2014
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2013
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Maturity
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6301 Ivy Lane (b)
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RGA Reinsurance Company
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5.520
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%
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$
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-
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$
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5,447
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-
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395 West Passaic (c)
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State Farm Life Insurance Co.
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6.004
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%
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-
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9,719
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-
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35 Waterview Boulevard (d)
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Wells Fargo CMBS
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6.348
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%
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-
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18,417
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-
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233 Canoe Brook Road (e)
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The Provident Bank
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4.375
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%
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-
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3,877
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-
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6 Becker, 85 Livingston,
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Wells Fargo CMBS
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10.220
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%
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64,829
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64,233
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8/11/2014 (l)
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75 Livingston &
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20 Waterview (f)
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4 Sylvan
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Wells Fargo CMBS
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10.190
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%
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14,565
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14,538
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8/11/2014 (l)
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10 Independence (g)
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Wells Fargo CMBS
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12.440
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%
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16,850
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16,638
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08/11/14
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Port Imperial South 4/5
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Wells Fargo Bank N.A.
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LIBOR+3.50
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%
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36,950
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36,950
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08/30/14
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9200 Edmonston Road (h)
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Principal Commercial Funding L.L.C.
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5.534
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%
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4,026
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4,115
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05/01/15
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Port Imperial South
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Wells Fargo Bank N.A.
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LIBOR+1.75
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%
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43,697
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43,278
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09/19/15
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4 Becker
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Wells Fargo CMBS
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9.550
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%
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39,108
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38,820
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05/11/16
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5 Becker (i)
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Wells Fargo CMBS
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12.830
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%
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13,467
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13,092
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05/11/16
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210 Clay
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Wells Fargo CMBS
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13.420
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%
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13,039
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12,767
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05/11/16
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Various (j)
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Prudential Insurance
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6.332
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%
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146,532
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147,477
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01/15/17
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150 Main St.
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Webster Bank
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LIBOR+2.35
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%
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217
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-
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03/30/17
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23 Main Street
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JPMorgan CMBS
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5.587
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%
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29,529
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29,843
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09/01/18
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Harborside Plaza 5
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The Northwestern Mutual Life
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6.842
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%
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223,381
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225,139
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11/01/18
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Insurance Co. & New York Life
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Insurance Co.
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100 Walnut Avenue
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Guardian Life Insurance Co.
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7.311
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%
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18,669
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18,792
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02/01/19
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One River Center (k)
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Guardian Life Insurance Co.
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7.311
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%
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42,768
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43,049
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02/01/19
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Park Square
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Wells Fargo Bank N.A.
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LIBOR+1.75
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%
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27,500
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-
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04/10/19
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Total mortgages, loans payable and other obligations
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$
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735,127
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$
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746,191
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(a)
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Reflects effective rate of debt, including deferred financing costs, comprised of the cost of terminated treasury lock agreements (if any), debt initiation costs, mark-to-market adjustment of acquired debt and other transaction costs, as applicable.
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(b)
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On April 1, 2014, the Company repaid the mortgage loan at par, using available cash.
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(c)
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On May 1, 2014, the Company repaid the mortgage loan at par, using available cash.
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(d)
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On May 12, 2014, the Company repaid the mortgage loan at par, using borrowings on the Company’s unsecured revolving credit facility.
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(e)
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On April 30, 2014, the Company repaid the mortgage loan at par, using available cash.
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(f)
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Mortgage is cross collateralized by the four properties.
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(g)
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The Company is negotiating a deed-in-lieu of foreclosure in satisfaction of this mortgage loan.
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(h)
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The mortgage loan originally matured on May 1, 2013. The maturity date was extended until May 1, 2015 with the same interest rate. Excess cash flow, as defined, is being held by the lender for re-leasing costs. The deed for the property was placed in escrow and is available to the lender in the event of default or non-payment at maturity.
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(i)
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The cash flow from this property is insufficient to cover operating costs and debt service. Consequently, the Company notified the lender and suspended debt service payments in August 2013. The Company has begun discussions with the lender regarding a deed-in-lieu of foreclosure and began remitting available cash flow to the lender effective August 2013.
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(j)
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Mortgage is cross collateralized by seven properties. The Operating Partnership has agreed, subject to certain conditions, to guarantee repayment of a portion of the loan.
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(k)
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Mortgage is collateralized by the three properties comprising One River Center.
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(l)The Company has begun discussions with the lender to extend the maturity date and modify the loan terms.
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the six months ended June 30, 2014 and 2013 was $61,999,000 and $60,838,000, respectively. Interest capitalized by the Company for the six months ended June 30, 2014 and 2013 was $6,493,000 and $6,748,000, respectively (of which these amounts included $1,953,000 and $584,000 for the six months ended June 30, 2014 and 2013, respectively, for interest capitalized on the Company’s investments in unconsolidated joint ventures which were substantially in development).
SUMMARY OF INDEBTEDNESS
As of June 30, 2014, the Company’s total indebtedness of $2,208,268,000 (weighted average interest rate of 5.51 percent) was comprised of $164,363,000 of revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 2.11 percent) and fixed rate debt and other obligations of $2,043,905,000 (weighted average rate of 5.78 percent).
As of December 31, 2013, the Company’s total indebtedness of $2,362,766,000 (weighted average interest rate of 5.62 percent) was comprised of $80,228,000 of variable rate mortgage debt (weighted average rate of 2.74 percent) and fixed rate debt and other obligations of $2,282,538,000 (weighted average rate of 5.72 percent).
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