Mortgages, Loans Payable And Other Obligations
|
12 Months Ended |
Dec. 31, 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 December 31, 2018, 16 of the Company’s properties, with a total carrying value of approximately $2.1 billion, and one of the Company’s land and development projects, with a total carrying value of approximately $142 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 December 31, 2018.
A summary of the Company’s mortgages, loans payable and other obligations as of December 31, 2018 and 2017 is as follows (dollars in thousands):
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Effective
|
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|
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December 31,
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December 31,
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|
|
Property/Project Name
|
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)
|
The Northwestern Mutual Life Insurance Co.
|
|
6.84
|
%
|
|
$
|
-
|
|
$
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209,257
|
|
|
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|
& New York Life Insurance Co.
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|
|
|
|
|
|
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|
|
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23 Main Street (c)
|
Berkadia CMBS
|
|
5.59
|
%
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|
|
-
|
|
|
27,090
|
|
|
|
|
One River Center (d)
|
Guardian Life Insurance Co.
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|
7.31
|
%
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|
-
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40,485
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|
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Park Square (e)
|
Wells Fargo Bank N.A.
|
LIBOR+1.87
|
%
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25,167
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26,567
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04/10/19
|
|
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250 Johnson (f)
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M&T Bank
|
LIBOR+2.35
|
%
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41,769
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32,491
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05/20/19
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|
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Port Imperial 4/5 Hotel (g)
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Fifth Third Bank & Santander
|
LIBOR+4.50
|
%
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|
73,350
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|
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43,674
|
|
10/06/19
|
|
|
Worcester (h)
|
Citizens Bank
|
LIBOR+2.50
|
%
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56,892
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|
|
37,821
|
|
12/10/19
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|
|
Monaco (i)
|
The Northwestern Mutual Life Insurance Co.
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3.15
|
%
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|
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168,370
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|
|
169,987
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|
02/01/21
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|
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Port Imperial South 4/5 Retail
|
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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|
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Portside 7
|
CBRE Capital Markets/FreddieMac
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3.57
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%
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58,998
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|
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58,998
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08/01/23
|
|
|
Alterra I & II
|
Capital One/FreddieMac
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|
3.85
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%
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|
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100,000
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|
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100,000
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02/01/24
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|
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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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Portside 5/6 (j)
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New York Life Insurance Company
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4.56
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%
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97,000
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45,778
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03/10/26
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Marbella
|
New York Life Insurance Company
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4.17
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%
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131,000
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-
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08/10/26
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101 Hudson
|
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)
|
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.
|
Natixis Real Estate Capital LLC
|
4.48
|
%
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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 11 (l)
|
The Northwestern Mutual Life Insurance Co.
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4.52
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%
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100,000
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46,113
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01/10/29
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Port Imperial South 4/5 Garage
|
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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1,440,396
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1,426,111
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Unamortized deferred financing costs
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(8,998)
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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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1,431,398
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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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On January 16, 2019, the loan was repaid using proceeds from the disposition of Park Square.
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(f)
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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.
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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 $58 million and provides, subject to certain conditions, two one-year extension options with a fee of 15 basis points each year.
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(i)
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This mortgage loan, which includes unamortized fair value adjustment of $3.4 million as of December 31, 2018, was assumed by the Company in April 2017 with the acquisition and consolidation of all the interests in the Monaco Towers property.
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(j)
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On December 7, 2018, the Company refinanced this loan, due to which unamortized deferred financing costs of $0.2 million pertaining to the initial loan were written off. Concurrent with the refinancing, the Company repaid in full the property's $70 million construction loan and obtained a new loan in the amount of $97 million.
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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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(l)
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On December 17, 2018, the Company refinanced this loan, due to which unamortized deferred financing costs of $0.3 million pertaining to the initial loan were written off. Concurrent with the refinancing, the Company repaid in full the property's $70.1 million construction loan and obtained a new loan in the amount of $100 million.
|
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, 2018 are as follows (dollars in thousands):
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Scheduled
|
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Principal
|
|
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Period
|
|
Amortization
|
|
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Maturities
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|
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Total
|
|
2019 (a)
|
$
|
532
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$
|
546,711
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|
$
|
547,243
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|
2020
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|
2,903
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|
325,000
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|
327,903
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2021
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|
3,227
|
|
|
285,800
|
|
|
289,027
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2022
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|
3,284
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|
|
300,000
|
|
|
303,284
|
|
2023
|
|
3,412
|
|
|
333,998
|
|
|
337,410
|
|
Thereafter
|
|
7,230
|
|
|
991,929
|
|
|
999,159
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Sub-total
|
|
20,588
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|
|
2,783,438
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2,804,026
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Adjustment for unamortized debt
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discount/premium, net
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December 31, 2018
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(2,838)
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|
-
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(2,838)
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Unamortized mark to market
|
|
3,370
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|
-
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|
3,370
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Unamortized deferred financing costs
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|
(11,907)
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(11,907)
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Totals/Weighted Average
|
$
|
9,213
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|
$
|
2,783,438
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|
$
|
2,792,651
|
(a)On January 7, 2019, the Company exercised the first one-year extension option on the $350 million term loan scheduled to mature in January 2019, which extended the maturity of the 2016 Term Loan to January 2020.
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the years ended December 31, 2018, 2017 and 2016 was $97,744,000, $103,559,000 and $122,414,000, respectively. Interest capitalized by the Company for the years ended December 31, 2018, 2017 and 2016 was $27,047,000, $20,240,000, and $19,316,000, respectively (which amounts included $816,000, $1,056,000 and $5,055,000 for the years ended December 31, 2018, 2017 and 2016, 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, 2018, the Company’s total indebtedness of $2,807,396,000 (weighted average interest rate of 3.89 percent) was comprised of $314,177,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 4.90 percent) and fixed rate debt and other obligations of $2,493,219,000 (weighted average rate of 3.76 percent).
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 December 31, 2018, 16 of the Company’s properties, with a total carrying value of approximately $2.1 billion, and one of the Company’s land and development projects, with a total carrying value of approximately $142 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 December 31, 2018.
A summary of the Company’s mortgages, loans payable and other obligations as of December 31, 2018 and 2017 is as follows (dollars in thousands):
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|
|
|
|
|
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|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
Effective
|
|
|
|
December 31,
|
|
|
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 (e)
|
Wells Fargo Bank N.A.
|
LIBOR+1.87
|
%
|
|
|
25,167
|
|
|
26,567
|
|
04/10/19
|
|
|
250 Johnson (f)
|
M&T Bank
|
LIBOR+2.35
|
%
|
|
|
41,769
|
|
|
32,491
|
|
05/20/19
|
|
|
Port Imperial 4/5 Hotel (g)
|
Fifth Third Bank & Santander
|
LIBOR+4.50
|
%
|
|
|
73,350
|
|
|
43,674
|
|
10/06/19
|
|
|
Worcester (h)
|
Citizens Bank
|
LIBOR+2.50
|
%
|
|
|
56,892
|
|
|
37,821
|
|
12/10/19
|
|
|
Monaco (i)
|
The Northwestern Mutual Life Insurance Co.
|
|
3.15
|
%
|
|
|
168,370
|
|
|
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
|
|
|
Portside 5/6 (j)
|
New York Life Insurance Company
|
4.56
|
%
|
|
|
97,000
|
|
|
45,778
|
|
03/10/26
|
|
|
Marbella
|
New York Life Insurance Company
|
|
4.17
|
%
|
|
|
131,000
|
|
|
-
|
|
08/10/26
|
|
|
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 11 (l)
|
The Northwestern Mutual Life Insurance Co.
|
4.52
|
%
|
|
|
100,000
|
|
|
46,113
|
|
01/10/29
|
|
|
Port Imperial South 4/5 Garage
|
American General Life & A/G PC
|
|
4.85
|
%
|
|
|
32,600
|
|
|
32,600
|
|
12/01/29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal balance outstanding
|
|
|
|
|
|
1,440,396
|
|
|
1,426,111
|
|
|
|
|
Unamortized deferred financing costs
|
|
|
|
|
|
|
(8,998)
|
|
|
(7,976)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgages, loans payable and other obligations, net
|
|
|
|
|
$
|
1,431,398
|
|
$
|
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)
|
On January 16, 2019, the loan was repaid using proceeds from the disposition of Park Square.
|
|
(f)
|
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.
|
|
(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 $58 million and provides, subject to certain conditions, two one-year extension options with a fee of 15 basis points each year.
|
|
(i)
|
This mortgage loan, which includes unamortized fair value adjustment of $3.4 million as of December 31, 2018, was assumed by the Company in April 2017 with the acquisition and consolidation of all the interests in the Monaco Towers property.
|
|
(j)
|
On December 7, 2018, the Company refinanced this loan, due to which unamortized deferred financing costs of $0.2 million pertaining to the initial loan were written off. Concurrent with the refinancing, the Company repaid in full the property's $70 million construction loan and obtained a new loan in the amount of $97 million.
|
|
(k)
|
This mortgage loan was obtained by the Company in March 2017 to partially fund the acquisition of the Short Hills/Madison portfolio.
|
|
(l)
|
On December 17, 2018, the Company refinanced this loan, due to which unamortized deferred financing costs of $0.3 million pertaining to the initial loan were written off. Concurrent with the refinancing, the Company repaid in full the property's $70.1 million construction loan and obtained a new loan in the amount of $100 million.
|
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, 2018 are as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scheduled
|
|
|
Principal
|
|
|
|
|
Period
|
|
Amortization
|
|
|
Maturities
|
|
|
Total
|
|
2019 (a)
|
$
|
532
|
|
$
|
546,711
|
|
$
|
547,243
|
|
2020
|
|
2,903
|
|
|
325,000
|
|
|
327,903
|
|
2021
|
|
3,227
|
|
|
285,800
|
|
|
289,027
|
|
2022
|
|
3,284
|
|
|
300,000
|
|
|
303,284
|
|
2023
|
|
3,412
|
|
|
333,998
|
|
|
337,410
|
|
Thereafter
|
|
7,230
|
|
|
991,929
|
|
|
999,159
|
|
Sub-total
|
|
20,588
|
|
|
2,783,438
|
|
|
2,804,026
|
|
Adjustment for unamortized debt
|
|
|
|
|
|
|
|
|
|
discount/premium, net
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
|
(2,838)
|
|
|
-
|
|
|
(2,838)
|
|
Unamortized mark to market
|
|
3,370
|
|
|
-
|
|
|
3,370
|
|
Unamortized deferred financing costs
|
|
(11,907)
|
|
|
|
|
|
(11,907)
|
|
|
|
|
|
|
|
|
|
|
|
Totals/Weighted Average
|
$
|
9,213
|
|
$
|
2,783,438
|
|
$
|
2,792,651
|
(a)On January 7, 2019, the Company exercised the first one-year extension option on the $350 million term loan scheduled to mature in January 2019, which extended the maturity of the 2016 Term Loan to January 2020.
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the years ended December 31, 2018, 2017 and 2016 was $97,744,000, $103,559,000 and $122,414,000, respectively. Interest capitalized by the Company for the years ended December 31, 2018, 2017 and 2016 was $27,047,000, $20,240,000, and $19,316,000, respectively (which amounts included $816,000, $1,056,000 and $5,055,000 for the years ended December 31, 2018, 2017 and 2016, 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, 2018, the Company’s total indebtedness of $2,807,396,000 (weighted average interest rate of 3.89 percent) was comprised of $314,177,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 4.90 percent) and fixed rate debt and other obligations of $2,493,219,000 (weighted average rate of 3.76 percent).
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).
|