Quarterly report pursuant to Section 13 or 15(d)

Mortgages, Loans Payable And Other Obligations

v3.10.0.1
Mortgages, Loans Payable And Other Obligations
6 Months Ended
Jun. 30, 2018
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 June 30, 2018,  14 of the Company’s properties, with a total carrying value of approximately $1.7 billion, and two of the Company’s land and development projects, with a total carrying value of approximately $249 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 June 30, 2018.



A summary of the Company’s mortgages, loans payable and other obligations as of June 30, 2018 and December 31, 2017 is as follows: (dollars in thousands) 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Effective

 

 

 

June 30,

 

 

December 31,

 

 

 

Property/Project Name

Lender

 

Rate (a)

 

 

 

2018

 

 

2017

 

Maturity

 

Harborside Plaza 5 (b)

The Northwestern Mutual Life Insurance Co.

 

6.84 

%

 

$

 -

 

$

209,257 

 

-

 



& New York Life Insurance Co.

 

 

 

 

 

 

 

 

 

 

 

 

23 Main Street (c)

Berkadia CMBS

 

5.59 

%

 

 

 -

 

 

27,090 

 

-

 

One River Center (d)

Guardian Life Insurance Co.

 

7.31 

%

 

 

 -

 

 

40,485 

 

-

 

Park Square

Wells Fargo Bank N.A.

LIBOR+1.87

%

 

 

25,867 

 

 

26,567 

 

04/10/19

 

250 Johnson (e)

M&T Bank

LIBOR+2.35

%

 

 

39,918 

 

 

32,491 

 

05/20/19

 

Portside 5/6 (f)

Citizens Bank

LIBOR+2.50

%

 

 

67,088 

 

 

45,778 

 

09/29/19

 

Port Imperial 4/5 Hotel (g)

Fifth Third Bank & Santander

LIBOR+4.50

%

 

 

65,598 

 

 

43,674 

 

10/06/19

 

Port Imperial South 11  (h)

JPMorgan Chase

LIBOR+2.35

%

 

 

60,107 

 

 

46,113 

 

11/24/19

 

Worcester (i)

Citizens Bank

LIBOR+2.50

%

 

 

52,913 

 

 

37,821 

 

12/10/19

 

Monaco (j)

The Northwestern Mutual Life Insurance Co.

 

3.15 

%

 

 

169,178 

 

 

169,987 

 

02/01/21

 

Port Imperial South 4/5 Retail

American General Life & A/G PC

 

4.56 

%

 

 

4,000 

 

 

4,000 

 

12/01/21

 

Portside 7

CBRE Capital Markets/FreddieMac

 

3.57 

%

 

 

58,998 

 

 

58,998 

 

08/01/23

 

Alterra I & II

Capital One/FreddieMac

 

3.85 

%

 

 

100,000 

 

 

100,000 

 

02/01/24

 

The Chase at Overlook Ridge

New York Community Bank

 

3.74 

%

 

 

135,750 

 

 

135,750 

 

01/01/25

 

101 Hudson

Wells Fargo CMBS

 

3.20 

%

 

 

250,000 

 

 

250,000 

 

10/11/26

 

Short Hills Portfolio (k)

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 4/5 Garage

American General Life & A/G PC

 

4.85 

%

 

 

32,600 

 

 

32,600 

 

12/01/29

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Principal balance outstanding

 

 

 

 

 

1,227,517 

 

 

1,426,111 

 

 

 

Unamortized deferred financing costs

 

 

 

 

 

(6,998)

 

 

(7,976)

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Total mortgages, loans payable and other obligations, net

 

 

 

 

$

1,220,519 

 

$

1,418,135 

 

 

 

















 



 

(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 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.

(c)

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.

(d)

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.

(e)

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. 

(f)

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. 

(g)

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.

(h)

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

(i)

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.

(j)

This mortgage loan, which includes unamortized fair value adjustment of $4.2 million as of June 30, 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 six months ended June 30, 2018 and 2017 was $41,354,000 and $49,652,000, respectively.  Interest capitalized by the Company for the six months ended June 30, 2018 and 2017 was $14,296,000 and $9,173,000, respectively (which amounts included $348,000 and $1,009,000 for the six months ended June 30, 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 June 30, 2018, the Company’s total indebtedness of $2,660,517,000 (weighted average interest rate of 3.79 percent) was comprised of $494,490,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 4.33 percent) and fixed rate debt and other obligations of $2,166,027,000 (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 June 30, 2018,  14 of the Company’s properties, with a total carrying value of approximately $1.7 billion, and two of the Company’s land and development projects, with a total carrying value of approximately $249 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 June 30, 2018.



A summary of the Company’s mortgages, loans payable and other obligations as of June 30, 2018 and December 31, 2017 is as follows: (dollars in thousands) 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Effective

 

 

 

June 30,

 

 

December 31,

 

 

 

Property/Project Name

Lender

 

Rate (a)

 

 

 

2018

 

 

2017

 

Maturity

 

Harborside Plaza 5 (b)

The Northwestern Mutual Life Insurance Co.

 

6.84 

%

 

$

 -

 

$

209,257 

 

-

 



& New York Life Insurance Co.

 

 

 

 

 

 

 

 

 

 

 

 

23 Main Street (c)

Berkadia CMBS

 

5.59 

%

 

 

 -

 

 

27,090 

 

-

 

One River Center (d)

Guardian Life Insurance Co.

 

7.31 

%

 

 

 -

 

 

40,485 

 

-

 

Park Square

Wells Fargo Bank N.A.

LIBOR+1.87

%

 

 

25,867 

 

 

26,567 

 

04/10/19

 

250 Johnson (e)

M&T Bank

LIBOR+2.35

%

 

 

39,918 

 

 

32,491 

 

05/20/19

 

Portside 5/6 (f)

Citizens Bank

LIBOR+2.50

%

 

 

67,088 

 

 

45,778 

 

09/29/19

 

Port Imperial 4/5 Hotel (g)

Fifth Third Bank & Santander

LIBOR+4.50

%

 

 

65,598 

 

 

43,674 

 

10/06/19

 

Port Imperial South 11  (h)

JPMorgan Chase

LIBOR+2.35

%

 

 

60,107 

 

 

46,113 

 

11/24/19

 

Worcester (i)

Citizens Bank

LIBOR+2.50

%

 

 

52,913 

 

 

37,821 

 

12/10/19

 

Monaco (j)

The Northwestern Mutual Life Insurance Co.

 

3.15 

%

 

 

169,178 

 

 

169,987 

 

02/01/21

 

Port Imperial South 4/5 Retail

American General Life & A/G PC

 

4.56 

%

 

 

4,000 

 

 

4,000 

 

12/01/21

 

Portside 7

CBRE Capital Markets/FreddieMac

 

3.57 

%

 

 

58,998 

 

 

58,998 

 

08/01/23

 

Alterra I & II

Capital One/FreddieMac

 

3.85 

%

 

 

100,000 

 

 

100,000 

 

02/01/24

 

The Chase at Overlook Ridge

New York Community Bank

 

3.74 

%

 

 

135,750 

 

 

135,750 

 

01/01/25

 

101 Hudson

Wells Fargo CMBS

 

3.20 

%

 

 

250,000 

 

 

250,000 

 

10/11/26

 

Short Hills Portfolio (k)

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 4/5 Garage

American General Life & A/G PC

 

4.85 

%

 

 

32,600 

 

 

32,600 

 

12/01/29

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Principal balance outstanding

 

 

 

 

 

1,227,517 

 

 

1,426,111 

 

 

 

Unamortized deferred financing costs

 

 

 

 

 

(6,998)

 

 

(7,976)

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Total mortgages, loans payable and other obligations, net

 

 

 

 

$

1,220,519 

 

$

1,418,135 

 

 

 

















 



 

(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 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.

(c)

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.

(d)

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.

(e)

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. 

(f)

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. 

(g)

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.

(h)

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

(i)

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.

(j)

This mortgage loan, which includes unamortized fair value adjustment of $4.2 million as of June 30, 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 six months ended June 30, 2018 and 2017 was $41,354,000 and $49,652,000, respectively.  Interest capitalized by the Company for the six months ended June 30, 2018 and 2017 was $14,296,000 and $9,173,000, respectively (which amounts included $348,000 and $1,009,000 for the six months ended June 30, 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 June 30, 2018, the Company’s total indebtedness of $2,660,517,000 (weighted average interest rate of 3.79 percent) was comprised of $494,490,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 4.33 percent) and fixed rate debt and other obligations of $2,166,027,000 (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).