Mortgages, Loans Payable And Other Obligations
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3 Months Ended |
Mar. 31, 2018 |
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| Debt Disclosure [Line Items] |
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| 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 March 31, 2018, nine of the Company’s properties, with a total carrying value of approximately $1.3 billion, and five of the Company’s land and development projects, with a total carrying value of approximately $487 million, are encumbered by the Company’s mortgages and loans payable. Payments on mortgages, loans payable and other obligations are generally due in monthly installments of principal and interest, or interest only. The Company was in compliance with its debt covenants under its mortgages and loans payable as of March 31, 2018.
A summary of the Company’s mortgages, loans payable and other obligations as of March 31, 2018 and December 31, 2017 is as follows: (dollars in thousands)
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Effective
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March 31,
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December 31,
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Property/Project Name
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Lender
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Rate (a)
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2018
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2017
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Maturity
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Harborside Plaza 5 (b)
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The Northwestern Mutual Life Insurance Co.
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6.84
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%
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$
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-
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$
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209,257
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-
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& New York Life Insurance Co.
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23 Main Street (c)
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Berkadia CMBS
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5.59
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%
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-
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27,090
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-
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One River Center (d)
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Guardian Life Insurance Co.
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7.31
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%
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-
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40,485
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-
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Park Square
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Wells Fargo Bank N.A.
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LIBOR+1.87
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%
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26,217
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26,567
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04/10/19
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250 Johnson (e)
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M&T Bank
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LIBOR+2.35
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%
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37,028
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32,491
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05/20/19
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Portside 5/6 (f)
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Citizens Bank
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LIBOR+2.50
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%
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56,541
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45,778
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09/29/19
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Port Imperial 4/5 Hotel (g)
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Fifth Third Bank & Santander
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LIBOR+4.50
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%
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50,958
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43,674
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10/06/19
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Port Imperial South 11 (h)
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JPMorgan Chase
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LIBOR+2.35
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%
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54,341
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46,113
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11/24/19
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Worcester (i)
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Citizens Bank
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LIBOR+2.50
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%
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48,099
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37,821
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12/10/19
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Monaco (j)
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The Northwestern Mutual Life Insurance Co.
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3.15
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%
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169,582
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169,987
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02/01/21
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Port Imperial South 4/5 Retail
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American General Life & A/G PC
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4.56
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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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Portside 7
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CBRE Capital Markets/FreddieMac
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3.57
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%
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58,998
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58,998
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08/01/23
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Alterra I & II
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Capital One/FreddieMac
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3.85
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%
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100,000
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100,000
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02/01/24
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The Chase at Overlook Ridge
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New York Community Bank
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3.74
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%
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135,750
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135,750
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01/01/25
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101 Hudson
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Wells Fargo CMBS
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3.20
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%
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250,000
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250,000
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10/11/26
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Short Hills Portfolio (k)
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Wells Fargo CMBS
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4.15
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%
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124,500
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124,500
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04/01/27
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150 Main St.
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Natixis Real Estate Capital LLC
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4.48
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%
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41,000
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41,000
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08/05/27
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Port Imperial South 4/5 Garage
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American General Life & A/G PC
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4.85
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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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1,189,614
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1,426,111
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Unamortized deferred financing costs
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(7,579)
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(7,976)
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Total mortgages, loans payable and other obligations, net
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$
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1,182,035
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$
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1,418,135
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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 8, 2018, the Company prepaid this loan in full upon payment of a fee of approximately $8.4 million using borrowings from the Company's unsecured revolving credit facility.
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(c)
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On March 1, 2018, the Company prepaid this loan in full upon payment of a fee of approximately $0.1 million using borrowings from the Company's unsecured revolving credit facility.
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(d)
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Mortgage was collateralized by the three properties comprising One River Center. On March 29, 2018, the Company prepaid this loan in full upon payment of a fee of approximately $1.8 million using borrowings from the Company's unsecured revolving credit facility.
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(e)
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This construction loan has a maximum borrowing capacity of $42 million and provides, subject to certain conditions, a one-year extension option with a fee of 25 basis points. See Note 12: Commitments and Contingencies - Construction Projects.
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(f)
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This construction loan has a maximum borrowing capacity of $73 million and provides, subject to certain conditions, two one-year extension options with a fee of 15 basis points each year. See Note 12: Commitments and Contingencies - Construction Projects.
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(g)
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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. See Note 12: Commitments and Contingencies - Construction Projects.
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(h)
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This construction loan has a maximum borrowing capacity of $78 million and provides, subject to certain conditions, two one-year extension options with a fee of 15 basis points each year. See Note 12: Commitments and Contingencies - Construction Projects
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(i)
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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. See Note 12: Commitments and Contingencies - Construction Projects.
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(j)
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This mortgage loan, which includes unamortized fair value adjustment of $5.0 million as of March 31, 2018, was assumed by the Company in April 2017 with the consolidation of all the interests in Monaco Towers.
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(k)
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This mortgage loan was obtained by the Company in March 2017 to partially fund the acquisition of the Short Hills/Madison portfolio.
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CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the three months ended March 31, 2018 and 2017 was $19,103,000 and $15,180,000, respectively. Interest capitalized by the Company for the three months ended March 31, 2018 and 2017 was $7,109,000 and $4,997,000, respectively (which amounts included $166,000 and $1,009,000 for the three months ended March 31, 2018 and 2017, respectively, of interest capitalized on the Company’s investments in unconsolidated joint ventures which were substantially in development).
SUMMARY OF INDEBTEDNESS
As of March 31, 2018, the Company’s total indebtedness of $2,630,614,000 (weighted average interest rate of 3.71 percent) was comprised of $464,183,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 3.94 percent) and fixed rate debt and other obligations of $2,166,431,000 (weighted average rate of 3.66 percent).
As of December 31, 2017, the Company’s total indebtedness of $2,826,110,000 (weighted average interest rate of 3.93 percent) was comprised of $382,443,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 3.63 percent) and fixed rate debt and other obligations of $2,443,667,000 (weighted average rate of 3.98 percent).
|
| Mack-Cali Realty LP [Member] |
|
| Debt Disclosure [Line Items] |
|
| 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 March 31, 2018, nine of the Company’s properties, with a total carrying value of approximately $1.3 billion, and five of the Company’s land and development projects, with a total carrying value of approximately $487 million, are encumbered by the Company’s mortgages and loans payable. Payments on mortgages, loans payable and other obligations are generally due in monthly installments of principal and interest, or interest only. The Company was in compliance with its debt covenants under its mortgages and loans payable as of March 31, 2018.
A summary of the Company’s mortgages, loans payable and other obligations as of March 31, 2018 and December 31, 2017 is as follows: (dollars in thousands)
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Effective
|
|
|
|
March 31,
|
|
|
December 31,
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|
|
|
|
Property/Project Name
|
Lender
|
|
Rate (a)
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2018
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2017
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|
Maturity
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|
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Harborside Plaza 5 (b)
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The Northwestern Mutual Life Insurance Co.
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6.84
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%
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$
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-
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$
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209,257
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-
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& New York Life Insurance Co.
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23 Main Street (c)
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Berkadia CMBS
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5.59
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%
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-
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27,090
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-
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One River Center (d)
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Guardian Life Insurance Co.
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7.31
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%
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-
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40,485
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-
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Park Square
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Wells Fargo Bank N.A.
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LIBOR+1.87
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%
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26,217
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26,567
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04/10/19
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250 Johnson (e)
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M&T Bank
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LIBOR+2.35
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%
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37,028
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|
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32,491
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05/20/19
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Portside 5/6 (f)
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Citizens Bank
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LIBOR+2.50
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%
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56,541
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45,778
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09/29/19
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Port Imperial 4/5 Hotel (g)
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Fifth Third Bank & Santander
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LIBOR+4.50
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%
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50,958
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43,674
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10/06/19
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Port Imperial South 11 (h)
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JPMorgan Chase
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LIBOR+2.35
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%
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54,341
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46,113
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11/24/19
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Worcester (i)
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Citizens Bank
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LIBOR+2.50
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%
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48,099
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37,821
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12/10/19
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Monaco (j)
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The Northwestern Mutual Life Insurance Co.
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3.15
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%
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169,582
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169,987
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02/01/21
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Port Imperial South 4/5 Retail
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American General Life & A/G PC
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4.56
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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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Portside 7
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CBRE Capital Markets/FreddieMac
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3.57
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%
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58,998
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58,998
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08/01/23
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Alterra I & II
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Capital One/FreddieMac
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3.85
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%
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100,000
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100,000
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02/01/24
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The Chase at Overlook Ridge
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New York Community Bank
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3.74
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%
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135,750
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135,750
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01/01/25
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101 Hudson
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Wells Fargo CMBS
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3.20
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%
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250,000
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250,000
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10/11/26
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Short Hills Portfolio (k)
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Wells Fargo CMBS
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4.15
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%
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124,500
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124,500
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04/01/27
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150 Main St.
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Natixis Real Estate Capital LLC
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4.48
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%
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41,000
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41,000
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08/05/27
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Port Imperial South 4/5 Garage
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American General Life & A/G PC
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4.85
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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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1,189,614
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|
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1,426,111
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Unamortized deferred financing costs
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(7,579)
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(7,976)
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Total mortgages, loans payable and other obligations, net
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|
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$
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1,182,035
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$
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1,418,135
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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 8, 2018, the Company prepaid this loan in full upon payment of a fee of approximately $8.4 million using borrowings from the Company's unsecured revolving credit facility.
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(c)
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On March 1, 2018, the Company prepaid this loan in full upon payment of a fee of approximately $0.1 million using borrowings from the Company's unsecured revolving credit facility.
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(d)
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Mortgage was collateralized by the three properties comprising One River Center. On March 29, 2018, the Company prepaid this loan in full upon payment of a fee of approximately $1.8 million using borrowings from the Company's unsecured revolving credit facility.
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|
(e)
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This construction loan has a maximum borrowing capacity of $42 million and provides, subject to certain conditions, a one-year extension option with a fee of 25 basis points. See Note 12: Commitments and Contingencies - Construction Projects.
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(f)
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This construction loan has a maximum borrowing capacity of $73 million and provides, subject to certain conditions, two one-year extension options with a fee of 15 basis points each year. See Note 12: Commitments and Contingencies - Construction Projects.
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(g)
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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. See Note 12: Commitments and Contingencies - Construction Projects.
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(h)
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This construction loan has a maximum borrowing capacity of $78 million and provides, subject to certain conditions, two one-year extension options with a fee of 15 basis points each year. See Note 12: Commitments and Contingencies - Construction Projects
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(i)
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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. See Note 12: Commitments and Contingencies - Construction Projects.
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(j)
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This mortgage loan, which includes unamortized fair value adjustment of $5.0 million as of March 31, 2018, was assumed by the Company in April 2017 with the consolidation of all the interests in Monaco Towers.
|
|
(k)
|
This mortgage loan was obtained by the Company in March 2017 to partially fund the acquisition of the Short Hills/Madison portfolio.
|
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the three months ended March 31, 2018 and 2017 was $19,103,000 and $15,180,000, respectively. Interest capitalized by the Company for the three months ended March 31, 2018 and 2017 was $7,109,000 and $4,997,000, respectively (which amounts included $166,000 and $1,009,000 for the three months ended March 31, 2018 and 2017, respectively, of interest capitalized on the Company’s investments in unconsolidated joint ventures which were substantially in development).
SUMMARY OF INDEBTEDNESS
As of March 31, 2018, the Company’s total indebtedness of $2,630,614,000 (weighted average interest rate of 3.71 percent) was comprised of $464,183,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 3.94 percent) and fixed rate debt and other obligations of $2,166,431,000 (weighted average rate of 3.66 percent).
As of December 31, 2017, the Company’s total indebtedness of $2,826,110,000 (weighted average interest rate of 3.93 percent) was comprised of $382,443,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 3.63 percent) and fixed rate debt and other obligations of $2,443,667,000 (weighted average rate of 3.98 percent).
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