| Mortgages, Loans Payable And Other Obligations |
9. 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, land and development projects. As of September 30, 2019, 21 of the Company’s properties, with a total carrying value of approximately $3.2 billion 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. The Company was in compliance with its debt covenants under its mortgages and loans payable as of September 30, 2019.
A summary of the Company’s mortgages, loans payable and other obligations as of September 30, 2019 and December 31, 2018 is as follows (dollars in thousands):
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Effective |
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September 30, |
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December 31, |
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|
Property/Project Name |
Lender |
|
Rate (a) |
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|
|
2019 |
|
|
2018 |
|
Maturity |
|
Park Square (b) |
Wells Fargo Bank N.A. |
|
LIBOR+1.87 |
% |
|
$ |
- |
|
$ |
25,167 |
|
- |
|
Worcester (c) |
Citizens Bank |
|
LIBOR+2.50 |
% |
|
|
57,883 |
|
|
56,892 |
|
12/10/19 |
|
Monaco (d) |
The Northwestern Mutual Life Insurance Co. |
|
3.15 |
% |
|
|
167,157 |
|
|
168,370 |
|
02/01/21 |
|
Port Imperial South 4/5 Retail |
American General Life & A/G PC |
|
4.56 |
% |
|
|
3,951 |
|
|
4,000 |
|
12/01/21 |
|
Port Imperial 4/5 Hotel (e) |
Fifth Third Bank & Santander |
|
LIBOR+4.50 |
% |
|
|
56,636 |
|
|
73,350 |
|
04/09/22 |
|
Chase III (f) |
Fifth Third Bank |
|
LIBOR+2.50 |
% |
|
|
13,837 |
|
|
- |
|
05/16/22 |
|
Port Imperial South 9 (g) |
Bank of New York Mellon |
|
LIBOR+2.13 |
% |
|
|
4,238 |
|
|
- |
|
12/19/22 |
|
Portside 7 |
CBRE Capital Markets/FreddieMac |
|
3.57 |
% |
|
|
58,998 |
|
|
58,998 |
|
08/01/23 |
|
Alterra I & II (h) |
Capital One/FreddieMac |
|
3.85 |
% |
|
|
100,000 |
|
|
100,000 |
|
02/01/24 |
|
250 Johnson (i) |
Nationwide Life Insurance Company |
|
3.74 |
% |
|
|
43,000 |
|
|
41,769 |
|
08/01/24 |
|
Liberty Towers |
American General Life Insurance Company |
|
3.37 |
% |
|
|
232,000 |
|
|
- |
|
10/01/24 |
|
The Chase at Overlook Ridge (j) |
New York Community Bank |
|
3.74 |
% |
|
|
135,750 |
|
|
135,750 |
|
01/01/25 |
|
Portside 5/6 |
New York Life Insurance Company |
4.56 |
% |
|
|
97,000 |
|
|
97,000 |
|
03/10/26 |
|
Marbella |
New York Life Insurance Company |
|
4.17 |
% |
|
|
131,000 |
|
|
131,000 |
|
08/10/26 |
|
Marbella II (k) |
New York Life Insurance Company |
|
4.29 |
% |
|
|
117,000 |
|
|
- |
|
08/10/26 |
|
101 Hudson |
Wells Fargo CMBS |
|
3.20 |
% |
|
|
250,000 |
|
|
250,000 |
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10/11/26 |
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Short Hills Portfolio (l) |
Wells Fargo CMBS |
|
4.15 |
% |
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|
124,500 |
|
|
124,500 |
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04/01/27 |
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150 Main St. |
Natixis Real Estate Capital LLC |
|
4.48 |
% |
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|
41,000 |
|
|
41,000 |
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08/05/27 |
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Port Imperial South 11 |
The Northwestern Mutual Life Insurance Co. |
|
4.52 |
% |
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|
100,000 |
|
|
100,000 |
|
01/10/29 |
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Soho Lofts |
New York Community Bank |
|
3.77 |
% |
|
|
160,000 |
|
|
- |
|
07/01/29 |
|
Riverwatch Commons (m) |
New York Community Bank |
|
3.79 |
% |
|
|
30,000 |
|
|
- |
|
07/01/29 |
|
111 River St. |
Athene Annuity and Life Company |
|
3.90 |
% |
|
|
150,000 |
|
|
- |
|
09/01/29 |
|
Port Imperial South 4/5 Garage |
American General Life & A/G PC |
|
4.85 |
% |
|
|
32,600 |
|
|
32,600 |
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12/01/29 |
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|
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Principal balance outstanding |
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|
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2,106,550 |
|
|
1,440,396 |
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|
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Unamortized deferred financing costs |
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|
|
|
|
(13,917) |
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|
(8,998) |
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|
|
|
|
|
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Total mortgages, loans payable and other obligations, net |
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|
|
|
$ |
2,092,633 |
|
$ |
1,431,398 |
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(a) |
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. |
(b) |
On January 16, 2019, the loan was repaid using proceeds from the disposition of Park Square. |
(c) |
This construction loan has a maximum borrowing capacity of $58 million and provides, subject to certain conditions, two one year extension options with a fee of 15 basis points each year. |
(d) |
This mortgage loan, which includes unamortized fair value adjustment of $2.1 million as of September 30, 2019, was assumed by the Company in April 2017 with the consolidation of all the interests in Monaco Towers. |
(e) |
This construction loan has a maximum borrowing capacity of $94 million and provides, subject to certain conditions, two one year extension options with a fee of 20 basis points for each year. On June 28, 2019, the Company paid down the loan by $30 million using proceeds from the June 28, 2019 Rockpoint transaction. See Note 12: Commitments and Contingencies - Construction Projects. At its original scheduled maturity in October 2019, the loan was amended and restated with a new interest rate and a new maturity date of April 2022. |
(f) |
This construction loan has a maximum borrowing capacity of $62 million and provides, subject to certain conditions, one 18-month extension option with a fee of 25 basis points. |
(g) |
This construction loan has a maximum borrowing capacity of $92 million and provides, subject to certain conditions, one one year extension option with a fee of 15 basis points. |
(h) |
This mortgage was retired upon disposition of the properties on October 23, 2019. |
(i) |
On July 29, 2019, the Company repaid the construction loan from the proceeds of a new $43 million mortgage loan that matures on August 1, 2024. |
(j) |
This mortgage was retired upon disposition of the property on October 23, 2019. |
(k) |
On January 31, 2019, the Company acquired the majority equity partner's 50 percent interest. Concurrently with the closing, the joint venture repaid in full the property's $74.7 million mortgage loan and obtained a new loan in the amount of $117 million. |
(l) |
This mortgage loan was obtained by the Company in March 2017 to partially fund the acquisition of the Short Hills/Madison portfolio. |
(m) |
Effective rate reflects the first five years of interest payments at a fixed rate. Interest payments after that period ends are based on LIBOR plus 2.75% annually. |
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the nine months ended September 30, 2019 and 2018 was $75,120,000 and $66,044,000, respectively. Interest capitalized by the Company for the nine months ended September 30, 2019 and 2018 was $14,315,000 and $21,274,000, respectively (which amounts included $990,000 and $562,000 for the nine months ended September 30, 2019 and 2018, respectively, of interest capitalized on the Company’s investments in unconsolidated joint ventures which were substantially in development).
SUMMARY OF INDEBTEDNESS
As of September 30, 2019, the Company’s total indebtedness of $3,169,550,000 (weighted average interest rate of 3.86 percent) was comprised of $340,594,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 4.14 percent) and fixed rate debt and other obligations of $2,828,956,000 (weighted average rate of 3.82 percent).
As of December 31, 2018, the Company’s total indebtedness of $2,807,396,000 (weighted average interest rate of 3.89 percent) was comprised of $314,177,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 4.90 percent) and fixed rate debt and other obligations of $2,493,219,000 (weighted average rate of 3.76 percent).
|
| Mortgages, Loans Payable And Other Obligations |
9. 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, land and development projects. As of September 30, 2019, 21 of the Company’s properties, with a total carrying value of approximately $3.2 billion 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. The Company was in compliance with its debt covenants under its mortgages and loans payable as of September 30, 2019.
A summary of the Company’s mortgages, loans payable and other obligations as of September 30, 2019 and December 31, 2018 is as follows (dollars in thousands):
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective |
|
|
|
September 30, |
|
|
December 31, |
|
|
|
Property/Project Name |
Lender |
|
Rate (a) |
|
|
|
2019 |
|
|
2018 |
|
Maturity |
|
Park Square (b) |
Wells Fargo Bank N.A. |
|
LIBOR+1.87 |
% |
|
$ |
- |
|
$ |
25,167 |
|
- |
|
Worcester (c) |
Citizens Bank |
|
LIBOR+2.50 |
% |
|
|
57,883 |
|
|
56,892 |
|
12/10/19 |
|
Monaco (d) |
The Northwestern Mutual Life Insurance Co. |
|
3.15 |
% |
|
|
167,157 |
|
|
168,370 |
|
02/01/21 |
|
Port Imperial South 4/5 Retail |
American General Life & A/G PC |
|
4.56 |
% |
|
|
3,951 |
|
|
4,000 |
|
12/01/21 |
|
Port Imperial 4/5 Hotel (e) |
Fifth Third Bank & Santander |
|
LIBOR+4.50 |
% |
|
|
56,636 |
|
|
73,350 |
|
04/09/22 |
|
Chase III (f) |
Fifth Third Bank |
|
LIBOR+2.50 |
% |
|
|
13,837 |
|
|
- |
|
05/16/22 |
|
Port Imperial South 9 (g) |
Bank of New York Mellon |
|
LIBOR+2.13 |
% |
|
|
4,238 |
|
|
- |
|
12/19/22 |
|
Portside 7 |
CBRE Capital Markets/FreddieMac |
|
3.57 |
% |
|
|
58,998 |
|
|
58,998 |
|
08/01/23 |
|
Alterra I & II (h) |
Capital One/FreddieMac |
|
3.85 |
% |
|
|
100,000 |
|
|
100,000 |
|
02/01/24 |
|
250 Johnson (i) |
Nationwide Life Insurance Company |
|
3.74 |
% |
|
|
43,000 |
|
|
41,769 |
|
08/01/24 |
|
Liberty Towers |
American General Life Insurance Company |
|
3.37 |
% |
|
|
232,000 |
|
|
- |
|
10/01/24 |
|
The Chase at Overlook Ridge (j) |
New York Community Bank |
|
3.74 |
% |
|
|
135,750 |
|
|
135,750 |
|
01/01/25 |
|
Portside 5/6 |
New York Life Insurance Company |
4.56 |
% |
|
|
97,000 |
|
|
97,000 |
|
03/10/26 |
|
Marbella |
New York Life Insurance Company |
|
4.17 |
% |
|
|
131,000 |
|
|
131,000 |
|
08/10/26 |
|
Marbella II (k) |
New York Life Insurance Company |
|
4.29 |
% |
|
|
117,000 |
|
|
- |
|
08/10/26 |
|
101 Hudson |
Wells Fargo CMBS |
|
3.20 |
% |
|
|
250,000 |
|
|
250,000 |
|
10/11/26 |
|
Short Hills Portfolio (l) |
Wells Fargo CMBS |
|
4.15 |
% |
|
|
124,500 |
|
|
124,500 |
|
04/01/27 |
|
150 Main St. |
Natixis Real Estate Capital LLC |
|
4.48 |
% |
|
|
41,000 |
|
|
41,000 |
|
08/05/27 |
|
Port Imperial South 11 |
The Northwestern Mutual Life Insurance Co. |
|
4.52 |
% |
|
|
100,000 |
|
|
100,000 |
|
01/10/29 |
|
Soho Lofts |
New York Community Bank |
|
3.77 |
% |
|
|
160,000 |
|
|
- |
|
07/01/29 |
|
Riverwatch Commons (m) |
New York Community Bank |
|
3.79 |
% |
|
|
30,000 |
|
|
- |
|
07/01/29 |
|
111 River St. |
Athene Annuity and Life Company |
|
3.90 |
% |
|
|
150,000 |
|
|
- |
|
09/01/29 |
|
Port Imperial South 4/5 Garage |
American General Life & A/G PC |
|
4.85 |
% |
|
|
32,600 |
|
|
32,600 |
|
12/01/29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal balance outstanding |
|
|
|
|
|
2,106,550 |
|
|
1,440,396 |
|
|
|
Unamortized deferred financing costs |
|
|
|
|
|
(13,917) |
|
|
(8,998) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgages, loans payable and other obligations, net |
|
|
|
|
$ |
2,092,633 |
|
$ |
1,431,398 |
|
|
|
|
|
(a) |
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. |
(b) |
On January 16, 2019, the loan was repaid using proceeds from the disposition of Park Square. |
(c) |
This construction loan has a maximum borrowing capacity of $58 million and provides, subject to certain conditions, two one year extension options with a fee of 15 basis points each year. |
(d) |
This mortgage loan, which includes unamortized fair value adjustment of $2.1 million as of September 30, 2019, was assumed by the Company in April 2017 with the consolidation of all the interests in Monaco Towers. |
(e) |
This construction loan has a maximum borrowing capacity of $94 million and provides, subject to certain conditions, two one year extension options with a fee of 20 basis points for each year. On June 28, 2019, the Company paid down the loan by $30 million using proceeds from the June 28, 2019 Rockpoint transaction. See Note 12: Commitments and Contingencies - Construction Projects. At its original scheduled maturity in October 2019, the loan was amended and restated with a new interest rate and a new maturity date of April 2022. |
(f) |
This construction loan has a maximum borrowing capacity of $62 million and provides, subject to certain conditions, one 18-month extension option with a fee of 25 basis points. |
(g) |
This construction loan has a maximum borrowing capacity of $92 million and provides, subject to certain conditions, one one year extension option with a fee of 15 basis points. |
(h) |
This mortgage was retired upon disposition of the properties on October 23, 2019. |
(i) |
On July 29, 2019, the Company repaid the construction loan from the proceeds of a new $43 million mortgage loan that matures on August 1, 2024. |
(j) |
This mortgage was retired upon disposition of the property on October 23, 2019. |
(k) |
On January 31, 2019, the Company acquired the majority equity partner's 50 percent interest. Concurrently with the closing, the joint venture repaid in full the property's $74.7 million mortgage loan and obtained a new loan in the amount of $117 million. |
(l) |
This mortgage loan was obtained by the Company in March 2017 to partially fund the acquisition of the Short Hills/Madison portfolio. |
(m) |
Effective rate reflects the first five years of interest payments at a fixed rate. Interest payments after that period ends are based on LIBOR plus 2.75% annually. |
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the nine months ended September 30, 2019 and 2018 was $75,120,000 and $66,044,000, respectively. Interest capitalized by the Company for the nine months ended September 30, 2019 and 2018 was $14,315,000 and $21,274,000, respectively (which amounts included $990,000 and $562,000 for the nine months ended September 30, 2019 and 2018, respectively, of interest capitalized on the Company’s investments in unconsolidated joint ventures which were substantially in development).
SUMMARY OF INDEBTEDNESS
As of September 30, 2019, the Company’s total indebtedness of $3,169,550,000 (weighted average interest rate of 3.86 percent) was comprised of $340,594,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 4.14 percent) and fixed rate debt and other obligations of $2,828,956,000 (weighted average rate of 3.82 percent).
As of December 31, 2018, the Company’s total indebtedness of $2,807,396,000 (weighted average interest rate of 3.89 percent) was comprised of $314,177,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 4.90 percent) and fixed rate debt and other obligations of $2,493,219,000 (weighted average rate of 3.76 percent).
|