Mortgages, Loans Payable And Other Obligations
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9 Months Ended |
Sep. 30, 2016 |
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| 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, land and development projects. As of September 30, 2016, 21 of the Company’s properties, with a total carrying value of approximately $1.2 billion, and three of the Company’s development projects, with a total carrying value of approximately $146 million, are encumbered by the Company’s mortgages and loans payable. Payments on mortgages, loans payable and other obligations are generally due in monthly installments of principal and interest, or interest only. Except as noted below, the Company was in compliance with its debt covenants under its mortgages and loans payable as of September 30, 2016.
A summary of the Company’s mortgages, loans payable and other obligations as of September 30, 2016 and December 31, 2015 is as follows: (dollars in thousands)
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Effective
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September 30,
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December 31,
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Property/Project Name
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Lender
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Rate (a)
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2016
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2015
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Maturity
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Port Imperial South (b)
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Wells Fargo Bank N.A.
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LIBOR+1.75
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%
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-
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$
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34,962
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-
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6 Becker, 85 Livingston,
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75 Livingston & 20 Waterview (c)
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Wells Fargo CMBS
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10.260
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%
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-
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63,279
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|
-
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9200 Edmonston Road (d)
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Principal Commercial Funding L.L.C.
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9.780
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%
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-
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3,793
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-
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4 Becker
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Wells Fargo CMBS
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11.260
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%
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$
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40,180
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40,631
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05/11/16
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(e)
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Various (f)
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Prudential Insurance
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6.332
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%
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141,894
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143,513
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01/15/17
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150 Main St. (g)
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Webster Bank
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LIBOR+2.35
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%
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25,159
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10,937
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03/30/17
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Curtis Center (h)
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CCRE & PREFG
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LIBOR+5.912
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%
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(i)
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75,000
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64,000
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10/09/17
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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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28,020
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28,541
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09/01/18
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Port Imperial 4/5 Hotel (j)
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Fifth Third Bank & Santander
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LIBOR+4.50
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%
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8,311
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-
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10/06/18
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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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214,690
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217,736
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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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Chase II (k)
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Fifth Third Bank
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LIBOR+2.25
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%
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23,599
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-
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12/15/18
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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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18,058
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18,273
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02/01/19
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One River Center (l)
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Guardian Life Insurance Co.
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7.311
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%
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41,367
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41,859
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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+1.872
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%
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(m)
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27,500
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27,500
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04/10/19
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Port Imperial South 11 (n)
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JPMorgan Chase
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LIBOR+2.35
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%
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7,136
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-
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11/24/19
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Port Imperial South 4/5 Retail
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American General Life & A/G PC
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4.559
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%
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4,000
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4,000
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12/01/21
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The Chase at Overlook Ridge
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New York Community Bank
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3.740
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%
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72,500
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-
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02/01/23
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Portside 7 (o)
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CBRE Capital Markets/
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3.569
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%
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58,998
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-
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08/01/23
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FreddieMac
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101 Hudson (p)
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Wells Fargo CMBS
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3.197
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%
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(q)
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250,000
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-
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10/11/26
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Port Imperial South 4/5 Garage
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American General Life & A/G PC
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4.853
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%
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32,600
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32,600
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12/01/29
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Principal balance outstanding
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1,069,012
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731,624
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Adjustment for unamortized debt discount
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-
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(548)
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Unamortized deferred financing costs
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(7,808)
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(4,465)
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Total mortgages, loans payable and other obligations, net
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$
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1,061,204
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$
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726,611
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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 January 19, 2016, the loan was repaid in full at maturity, using borrowings from the Company's revolving credit facility.
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(c)
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On April 22, 2016, the loan was repaid at a discount for $51.5 million, using borrowings from the Company's revolving credit facility. Accordingly, the Company recognized a gain on extinguishment of debt of $12.4 million, which is included in loss on extinguishment of debt, net.
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(d)
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On May 5, 2016, the Company transferred the deed for 9200 Edmonston Road to the lender in satisfaction of its obligations and recorded a gain of $0.2 million.
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(e)
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The Company has begun discussions with the lender regarding the past due maturity of the loan.
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(f)
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Mortgage is cross collateralized by seven properties. The Company has agreed, subject to certain conditions, to guarantee repayment of $61.1 million of the loan.
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(g)
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This construction loan has a maximum borrowing capacity of $28.8 million.
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(h)
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The Company owns a 50 percent tenants-in-common interest in the Curtis Center property. The Company’s $75 million loan consists of its 50 percent interest in a $102 million senior loan with a current rate of 3.8191 percent at September 30, 2016 and its 50 percent interest in a $48 million mezzanine loan with a current rate of 10.025 percent at September 30, 2016. The senior loan rate is based on a floating rate of one-month LIBOR plus 329 basis points and the mezzanine loan rate is based on a floating rate of one-month LIBOR plus 950 basis points. The Company has entered into LIBOR caps for the periods of the loans. In October 2016, the first of three one-year extension options was exercised by the venture.
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(i)
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The effective interest rate includes amortization of deferred financing costs of 1.362 percent.
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(j)
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This construction loan has a maximum borrowing capacity of $94 million.
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(k)
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This construction loan has a maximum borrowing capacity of $48 million.
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(l)
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Mortgage is collateralized by the three properties comprising One River Center.
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(m)
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The effective interest rate includes amortization of deferred financing costs of 0.122 percent.
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(n)
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This constuction loan has a maximum borrowing capacity of $78 million.
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(o)
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This mortgage loan was obtained by the Company in July 2016 to replace a $42.5 million mortgage loan that was in place at the property acquisition date of April 1, 2016.
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(p)
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This mortgage loan was obtained by the Company on September 30, 2016. $19.2 million of the mortgage loan principal was placed in escrow accounts directly by the lender at the loan closing.
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(q)
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The effective interest rate includes amortization of deferred financing costs of 0.0798 percent.
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CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the nine months ended September 30, 2016 and 2015 was $89,617,000 and $85,019,000, respectively. Interest capitalized by the Company for the nine months ended September 30, 2016 and 2015 was $14,436,000 and $11,744,000, respectively (which amounts included $3,937,000 and $3,769,000 for the nine months ended September 30, 2016 and 2015, 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, 2016, the Company’s total indebtedness of $2,474,148,000 (weighted average interest rate of 4.48 percent) was comprised of $261,706,000 of revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 3.75 percent) and fixed rate debt and other obligations of $2,212,442,000 (weighted average rate of 4.56 percent).
As of December 31, 2015, the Company’s total indebtedness of $2,154,920,000 (weighted average interest rate of 5.22 percent) was comprised of $292,399,000 of revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 2.81 percent) and fixed rate debt and other obligations of $1,862,521,000 (weighted average rate of 5.60 percent).
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| Mack Cali Realty LP [Member] |
|
| 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, land and development projects. As of September 30, 2016, 21 of the Company’s properties, with a total carrying value of approximately $1.2 billion, and three of the Company’s development projects, with a total carrying value of approximately $146 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 under its mortgages and loans payable as of September 30, 2016.
A summary of the Company’s mortgages, loans payable and other obligations as of September 30, 2016 and December 31, 2015 is as follows: (dollars in thousands)
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Effective
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
Property/Project Name
|
Lender
|
|
Rate (a)
|
|
|
|
2016
|
|
|
2015
|
|
Maturity
|
|
|
Port Imperial South (b)
|
Wells Fargo Bank N.A.
|
LIBOR+1.75
|
%
|
|
|
-
|
|
$
|
34,962
|
|
-
|
|
|
6 Becker, 85 Livingston,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75 Livingston & 20 Waterview (c)
|
Wells Fargo CMBS
|
|
10.260
|
%
|
|
|
-
|
|
|
63,279
|
|
-
|
|
|
9200 Edmonston Road (d)
|
Principal Commercial Funding L.L.C.
|
|
9.780
|
%
|
|
|
-
|
|
|
3,793
|
|
-
|
|
|
4 Becker
|
Wells Fargo CMBS
|
|
11.260
|
%
|
|
$
|
40,180
|
|
|
40,631
|
|
05/11/16
|
(e)
|
|
Various (f)
|
Prudential Insurance
|
|
6.332
|
%
|
|
|
141,894
|
|
|
143,513
|
|
01/15/17
|
|
|
150 Main St. (g)
|
Webster Bank
|
LIBOR+2.35
|
%
|
|
|
25,159
|
|
|
10,937
|
|
03/30/17
|
|
|
Curtis Center (h)
|
CCRE & PREFG
|
LIBOR+5.912
|
%
|
(i)
|
|
75,000
|
|
|
64,000
|
|
10/09/17
|
|
|
23 Main Street
|
JPMorgan CMBS
|
|
5.587
|
%
|
|
|
28,020
|
|
|
28,541
|
|
09/01/18
|
|
|
Port Imperial 4/5 Hotel (j)
|
Fifth Third Bank & Santander
|
LIBOR+4.50
|
%
|
|
|
8,311
|
|
|
-
|
|
10/06/18
|
|
|
Harborside Plaza 5
|
The Northwestern Mutual Life
|
|
6.842
|
%
|
|
|
214,690
|
|
|
217,736
|
|
11/01/18
|
|
|
|
Insurance Co. & New York Life
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance Co.
|
|
|
|
|
|
|
|
|
|
|
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|
|
Chase II (k)
|
Fifth Third Bank
|
LIBOR+2.25
|
%
|
|
|
23,599
|
|
|
-
|
|
12/15/18
|
|
|
100 Walnut Avenue
|
Guardian Life Insurance Co.
|
|
7.311
|
%
|
|
|
18,058
|
|
|
18,273
|
|
02/01/19
|
|
|
One River Center (l)
|
Guardian Life Insurance Co.
|
|
7.311
|
%
|
|
|
41,367
|
|
|
41,859
|
|
02/01/19
|
|
|
Park Square
|
Wells Fargo Bank N.A.
|
LIBOR+1.872
|
%
|
(m)
|
|
27,500
|
|
|
27,500
|
|
04/10/19
|
|
|
Port Imperial South 11 (n)
|
JPMorgan Chase
|
LIBOR+2.35
|
%
|
|
|
7,136
|
|
|
-
|
|
11/24/19
|
|
|
Port Imperial South 4/5 Retail
|
American General Life & A/G PC
|
|
4.559
|
%
|
|
|
4,000
|
|
|
4,000
|
|
12/01/21
|
|
|
The Chase at Overlook Ridge
|
New York Community Bank
|
|
3.740
|
%
|
|
|
72,500
|
|
|
-
|
|
02/01/23
|
|
|
Portside 7 (o)
|
CBRE Capital Markets/
|
3.569
|
%
|
|
|
58,998
|
|
|
-
|
|
08/01/23
|
|
|
|
FreddieMac
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101 Hudson (p)
|
Wells Fargo CMBS
|
|
3.197
|
%
|
(q)
|
|
250,000
|
|
|
-
|
|
10/11/26
|
|
|
Port Imperial South 4/5 Garage
|
American General Life & A/G PC
|
|
4.853
|
%
|
|
|
32,600
|
|
|
32,600
|
|
12/01/29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal balance outstanding
|
|
|
|
|
|
1,069,012
|
|
|
731,624
|
|
|
|
|
Adjustment for unamortized debt discount
|
|
|
|
|
|
-
|
|
|
(548)
|
|
|
|
|
Unamortized deferred financing costs
|
|
|
|
|
|
|
(7,808)
|
|
|
(4,465)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgages, loans payable and other obligations, net
|
|
|
|
|
$
|
1,061,204
|
|
$
|
726,611
|
|
|
|
|
|
|
|
|
|
|
(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 19, 2016, the loan was repaid in full at maturity, using borrowings from the Company's revolving credit facility.
|
|
(c)
|
On April 22, 2016, the loan was repaid at a discount for $51.5 million, using borrowings from the Company's revolving credit facility. Accordingly, the Company recognized a gain on extinguishment of debt of $12.4 million, which is included in loss on extinguishment of debt, net.
|
|
(d)
|
On May 5, 2016, the Company transferred the deed for 9200 Edmonston Road to the lender in satisfaction of its obligations and recorded a gain of $0.2 million.
|
|
(e)
|
The Company has begun discussions with the lender regarding the past due maturity of the loan.
|
|
(f)
|
Mortgage is cross collateralized by seven properties. The Company has agreed, subject to certain conditions, to guarantee repayment of $61.1 million of the loan.
|
|
(g)
|
This construction loan has a maximum borrowing capacity of $28.8 million.
|
|
(h)
|
The Company owns a 50 percent tenants-in-common interest in the Curtis Center property. The Company’s $75 million loan consists of its 50 percent interest in a $102 million senior loan with a current rate of 3.8191 percent at September 30, 2016 and its 50 percent interest in a $48 million mezzanine loan with a current rate of 10.025 percent at September 30, 2016. The senior loan rate is based on a floating rate of one-month LIBOR plus 329 basis points and the mezzanine loan rate is based on a floating rate of one-month LIBOR plus 950 basis points. The Company has entered into LIBOR caps for the periods of the loans. In October 2016, the first of three one-year extension options was exercised by the venture.
|
|
(i)
|
The effective interest rate includes amortization of deferred financing costs of 1.362 percent.
|
|
(j)
|
This construction loan has a maximum borrowing capacity of $94 million.
|
|
(k)
|
This construction loan has a maximum borrowing capacity of $48 million.
|
|
(l)
|
Mortgage is collateralized by the three properties comprising One River Center.
|
|
(m)
|
The effective interest rate includes amortization of deferred financing costs of 0.122 percent.
|
|
(n)
|
This constuction loan has a maximum borrowing capacity of $78 million.
|
|
(o)
|
This mortgage loan was obtained by the Company in July 2016 to replace a $42.5 million mortgage loan that was in place at the property acquisition date of April 1, 2016.
|
|
(p)
|
This mortgage loan was obtained by the Company on September 30, 2016. $19.2 million of the mortgage loan principal was placed in escrow accounts directly by the lender at the loan closing.
|
|
(q)
|
The effective interest rate includes amortization of deferred financing costs of 0.0798 percent.
|
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the nine months ended September 30, 2016 and 2015 was $89,617,000 and $85,019,000, respectively. Interest capitalized by the Company for the nine months ended September 30, 2016 and 2015 was $14,436,000 and $11,744,000, respectively (which amounts included $3,937,000 and $3,769,000 for the nine months ended September 30, 2016 and 2015, 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, 2016, the Company’s total indebtedness of $2,474,148,000 (weighted average interest rate of 4.48 percent) was comprised of $261,706,000 of revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 3.75 percent) and fixed rate debt and other obligations of $2,212,442,000 (weighted average rate of 4.56 percent).
As of December 31, 2015, the Company’s total indebtedness of $2,154,920,000 (weighted average interest rate of 5.22 percent) was comprised of $292,399,000 of revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 2.81 percent) and fixed rate debt and other obligations of $1,862,521,000 (weighted average rate of 5.60 percent).
|