Mortgages, Loans Payable And Other Obligations
|
12 Months Ended |
Dec. 31, 2016 |
|---|
| 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 December 31, 2016, 13 of the Company’s properties, with a total carrying value of approximately $970.0 million, and four of the Company’s land and development projects, with a total carrying value of approximately $194.8 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 December 31, 2016.
A summary of the Company’s mortgages, loans payable and other obligations as of December 31, 2016 and 2015 is as follows: (dollars in thousands)
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|
|
|
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|
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Effective
|
|
|
|
December 31,
|
|
|
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
|
|
-
|
|
|
Various (e)
|
Prudential Insurance
|
|
6.332
|
%
|
|
|
-
|
|
|
143,513
|
|
-
|
|
|
4 Becker (f)
|
Wells Fargo CMBS
|
|
11.260
|
%
|
|
|
-
|
|
|
40,631
|
|
-
|
|
|
100 Walnut Avenue (g)
|
Guardian Life Insurance Co.
|
|
7.311
|
%
|
|
|
-
|
|
|
18,273
|
|
-
|
|
|
150 Main St. (h)
|
Webster Bank
|
LIBOR+2.35
|
%
|
|
$
|
26,642
|
|
|
10,937
|
|
03/30/17
|
|
|
Curtis Center (i)
|
CCRE & PREFG
|
LIBOR+5.912
|
%
|
|
|
75,000
|
|
|
64,000
|
|
10/09/17
|
|
|
23 Main Street
|
JPMorgan CMBS
|
|
5.587
|
%
|
|
|
27,838
|
|
|
28,541
|
|
09/01/18
|
|
|
Port Imperial 4/5 Hotel (j)
|
Fifth Third Bank & Santander
|
LIBOR+4.50
|
%
|
|
|
14,919
|
|
|
-
|
|
10/06/18
|
|
|
Harborside Plaza 5
|
The Northwestern Mutual Life
|
|
6.842
|
%
|
|
|
213,640
|
|
|
217,736
|
|
11/01/18
|
|
|
|
Insurance Co. & New York Life
|
|
|
|
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|
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|
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Insurance Co.
|
|
|
|
|
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Chase II (k)
|
Fifth Third Bank
|
LIBOR+2.25
|
%
|
|
|
34,708
|
|
|
-
|
|
12/16/18
|
|
|
One River Center (l)
|
Guardian Life Insurance Co.
|
|
7.311
|
%
|
|
|
41,197
|
|
|
41,859
|
|
02/01/19
|
|
|
Park Square
|
Wells Fargo Bank N.A.
|
LIBOR+1.872
|
%
|
(m)
|
|
27,500
|
|
|
27,500
|
|
04/10/19
|
|
|
250 Johnson
|
M&T Bank
|
LIBOR+2.35
|
%
|
|
|
2,440
|
|
|
-
|
|
05/20/19
|
|
|
Port Imperial South 11 (n)
|
JPMorgan Chase
|
LIBOR+2.35
|
%
|
|
|
14,073
|
|
|
-
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Principal balance outstanding
|
|
|
|
|
|
896,055
|
|
|
731,624
|
|
|
|
|
Adjustment for unamortized debt discount
|
|
|
|
|
|
-
|
|
|
(548)
|
|
|
|
|
Unamortized deferred financing costs
|
|
|
|
|
|
|
(7,470)
|
|
|
(4,465)
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|
|
|
|
|
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|
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|
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Total mortgages, loans payable and other obligations, net
|
|
|
|
|
$
|
888,585
|
|
$
|
726,611
|
|
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|
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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 19, 2016, the loan was repaid in full at maturity, using borrowings from the Company's unsecured 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 unsecured 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)
|
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)
|
On November 16, 2016, the loan was repaid in full, using borrowings from the Company's unsecured revolving credit facility.
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(f)
|
On December 5, 2016, the Company transferred the deed for 4 Becker Farm Road to the lender in satisfaction of its obligations and recorded a gain of $10.4 million.
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(g)
|
On December 22, 2016, the loan was repaid at a premium, using proceeds from the disposition of 100 Walnut Avenue. Accordingly, the Company recognized a loss on extinguishment of debt of $2.3 million, which is included in loss on extinguishment of debt, net.
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|
(h)
|
This construction loan has a maximum borrowing capacity of $28.8 million.
|
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(i)
|
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 3.998 percent at December 31, 2016 and its 50 percent interest in a $48 million mezzanine loan with a current rate of 10.204 percent at December 31, 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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(j)
|
This construction loan has a maximum borrowing capacity of $94 million.
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|
(k)
|
This construction loan has a maximum borrowing capacity of $48 million.
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(l)
|
Mortgage is collateralized by the three properties comprising One River Center.
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(m)
|
The effective interest rate includes amortization of deferred financing costs of 0.122 percent.
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(n)
|
This constuction loan has a maximum borrowing capacity of $78 million.
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|
(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.
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(p)
|
This mortgage loan was obtained by the Company on September 30, 2016.
|
|
(q)
|
The effective interest rate includes amortization of deferred financing costs of 0.0798 percent.
|
|
|
|
SCHEDULED PRINCIPAL PAYMENTS
Scheduled principal payments for the Company’s senior unsecured notes (see Note 7), unsecured revolving credit facility and term loan (see Note 8) and mortgages, loans payable and other obligations as of December 31, 2016 are as follows: (dollars in thousands)
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Scheduled
|
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Principal
|
|
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|
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Period
|
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Amortization
|
|
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Maturities
|
|
|
Total
|
|
2017
|
$
|
6,776
|
|
$
|
637,643
|
|
$
|
644,419
|
|
2018
|
|
6,977
|
|
|
281,163
|
|
|
288,140
|
|
2019
|
|
1,912
|
|
|
430,799
|
|
|
432,711
|
|
2020
|
|
1,977
|
|
|
-
|
|
|
1,977
|
|
2021
|
|
2,050
|
|
|
3,800
|
|
|
5,850
|
|
Thereafter
|
|
6,813
|
|
|
977,145
|
|
|
983,958
|
|
Sub-total
|
|
26,505
|
|
|
2,330,550
|
|
|
2,357,055
|
|
Adjustment for unamortized debt
|
|
|
|
|
|
|
|
|
|
discount/premium, net
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
(4,430)
|
|
|
-
|
|
|
(4,430)
|
|
Unamortized deferred financing costs
|
|
(12,616)
|
|
|
|
|
|
(12,616)
|
|
|
|
|
|
|
|
|
|
|
|
Totals/Weighted Average
|
$
|
9,459
|
|
$
|
2,330,550
|
|
$
|
2,340,009
|
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the years ended December 31, 2016, 2015 and 2014 was $122,414,000, $115,123,000 and $119,664,000, respectively. Interest capitalized by the Company for the years ended December 31, 2016, 2015 and 2014 was $19,316,000, $16,217,000, and $15,470,000, respectively (of which these amounts included $5,055,000, $5,325,000 and $4,646,000 for the years ended December 31, 2016, 2015 and 2014, respectively, of interest capitalized on the Company’s investments in unconsolidated joint ventures which were substantially in development).
SUMMARY OF INDEBTEDNESS
As of December 31, 2016, the Company’s total indebtedness of $2,357,055,000 (weighted average interest rate of 3.79 percent) was comprised of $481,282,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 2.93 percent) and fixed rate debt and other obligations of $1,875,773,000 (weighted average rate of 4.01 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 unsecured 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).
|
| Mack-Cali Realty LP [Member] |
|
| 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 December 31, 2016, 13 of the Company’s properties, with a total carrying value of approximately $970.0 million, and four of the Company’s land and development projects, with a total carrying value of approximately $194.8 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 December 31, 2016.
A summary of the Company’s mortgages, loans payable and other obligations as of December 31, 2016 and 2015 is as follows: (dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective
|
|
|
|
December 31,
|
|
|
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
|
|
-
|
|
|
Various (e)
|
Prudential Insurance
|
|
6.332
|
%
|
|
|
-
|
|
|
143,513
|
|
-
|
|
|
4 Becker (f)
|
Wells Fargo CMBS
|
|
11.260
|
%
|
|
|
-
|
|
|
40,631
|
|
-
|
|
|
100 Walnut Avenue (g)
|
Guardian Life Insurance Co.
|
|
7.311
|
%
|
|
|
-
|
|
|
18,273
|
|
-
|
|
|
150 Main St. (h)
|
Webster Bank
|
LIBOR+2.35
|
%
|
|
$
|
26,642
|
|
|
10,937
|
|
03/30/17
|
|
|
Curtis Center (i)
|
CCRE & PREFG
|
LIBOR+5.912
|
%
|
|
|
75,000
|
|
|
64,000
|
|
10/09/17
|
|
|
23 Main Street
|
JPMorgan CMBS
|
|
5.587
|
%
|
|
|
27,838
|
|
|
28,541
|
|
09/01/18
|
|
|
Port Imperial 4/5 Hotel (j)
|
Fifth Third Bank & Santander
|
LIBOR+4.50
|
%
|
|
|
14,919
|
|
|
-
|
|
10/06/18
|
|
|
Harborside Plaza 5
|
The Northwestern Mutual Life
|
|
6.842
|
%
|
|
|
213,640
|
|
|
217,736
|
|
11/01/18
|
|
|
|
Insurance Co. & New York Life
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance Co.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chase II (k)
|
Fifth Third Bank
|
LIBOR+2.25
|
%
|
|
|
34,708
|
|
|
-
|
|
12/16/18
|
|
|
One River Center (l)
|
Guardian Life Insurance Co.
|
|
7.311
|
%
|
|
|
41,197
|
|
|
41,859
|
|
02/01/19
|
|
|
Park Square
|
Wells Fargo Bank N.A.
|
LIBOR+1.872
|
%
|
(m)
|
|
27,500
|
|
|
27,500
|
|
04/10/19
|
|
|
250 Johnson
|
M&T Bank
|
LIBOR+2.35
|
%
|
|
|
2,440
|
|
|
-
|
|
05/20/19
|
|
|
Port Imperial South 11 (n)
|
JPMorgan Chase
|
LIBOR+2.35
|
%
|
|
|
14,073
|
|
|
-
|
|
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
|
|
|
|
|
|
896,055
|
|
|
731,624
|
|
|
|
|
Adjustment for unamortized debt discount
|
|
|
|
|
|
-
|
|
|
(548)
|
|
|
|
|
Unamortized deferred financing costs
|
|
|
|
|
|
|
(7,470)
|
|
|
(4,465)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgages, loans payable and other obligations, net
|
|
|
|
|
$
|
888,585
|
|
$
|
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 unsecured 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 unsecured 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)
|
On November 16, 2016, the loan was repaid in full, using borrowings from the Company's unsecured revolving credit facility.
|
|
(f)
|
On December 5, 2016, the Company transferred the deed for 4 Becker Farm Road to the lender in satisfaction of its obligations and recorded a gain of $10.4 million.
|
|
(g)
|
On December 22, 2016, the loan was repaid at a premium, using proceeds from the disposition of 100 Walnut Avenue. Accordingly, the Company recognized a loss on extinguishment of debt of $2.3 million, which is included in loss on extinguishment of debt, net.
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(h)
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This construction loan has a maximum borrowing capacity of $28.8 million.
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(i)
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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 3.998 percent at December 31, 2016 and its 50 percent interest in a $48 million mezzanine loan with a current rate of 10.204 percent at December 31, 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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(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)
|
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)
|
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)
|
This mortgage loan was obtained by the Company on September 30, 2016.
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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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SCHEDULED PRINCIPAL PAYMENTS
Scheduled principal payments for the Company’s senior unsecured notes (see Note 7), unsecured revolving credit facility and term loan (see Note 8) and mortgages, loans payable and other obligations as of December 31, 2016 are as follows: (dollars in thousands)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scheduled
|
|
|
Principal
|
|
|
|
|
Period
|
|
Amortization
|
|
|
Maturities
|
|
|
Total
|
|
2017
|
$
|
6,776
|
|
$
|
637,643
|
|
$
|
644,419
|
|
2018
|
|
6,977
|
|
|
281,163
|
|
|
288,140
|
|
2019
|
|
1,912
|
|
|
430,799
|
|
|
432,711
|
|
2020
|
|
1,977
|
|
|
-
|
|
|
1,977
|
|
2021
|
|
2,050
|
|
|
3,800
|
|
|
5,850
|
|
Thereafter
|
|
6,813
|
|
|
977,145
|
|
|
983,958
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|
Sub-total
|
|
26,505
|
|
|
2,330,550
|
|
|
2,357,055
|
|
Adjustment for unamortized debt
|
|
|
|
|
|
|
|
|
|
discount/premium, net
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
(4,430)
|
|
|
-
|
|
|
(4,430)
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|
Unamortized deferred financing costs
|
|
(12,616)
|
|
|
|
|
|
(12,616)
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|
|
|
|
|
|
|
|
|
|
|
Totals/Weighted Average
|
$
|
9,459
|
|
$
|
2,330,550
|
|
$
|
2,340,009
|
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the years ended December 31, 2016, 2015 and 2014 was $122,414,000, $115,123,000 and $119,664,000, respectively. Interest capitalized by the Company for the years ended December 31, 2016, 2015 and 2014 was $19,316,000, $16,217,000, and $15,470,000, respectively (of which these amounts included $5,055,000, $5,325,000 and $4,646,000 for the years ended December 31, 2016, 2015 and 2014, respectively, of interest capitalized on the Company’s investments in unconsolidated joint ventures which were substantially in development).
SUMMARY OF INDEBTEDNESS
As of December 31, 2016, the Company’s total indebtedness of $2,357,055,000 (weighted average interest rate of 3.79 percent) was comprised of $481,282,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 2.93 percent) and fixed rate debt and other obligations of $1,875,773,000 (weighted average rate of 4.01 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 unsecured 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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