| Mortgages, Loans Payable And Other Obligations |
10. MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS
The Company has mortgages, loans payable and other obligations which primarily consist of various loans collateralized by certain of the Company’s rental properties, land and development projects. As of September 30, 2020, 19 of the Company’s properties, with a total carrying value of approximately $2.8 billion and four of the Company’s land and development projects, with a total carrying value of approximately $645 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 September 30, 2020.
A summary of the Company’s mortgages, loans payable and other obligations as of September 30, 2020 and December 31, 2019 is as follows (dollars in thousands):
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Effective |
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September 30, |
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December 31, |
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Property/Project Name |
Lender |
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Rate (a) |
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2020 |
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2019 |
|
Maturity |
|
Monaco (b) |
The Northwestern Mutual Life Insurance Co. |
|
3.15 |
% |
|
$ |
165,537 |
|
$ |
166,752 |
|
02/01/21 |
|
Port Imperial South 4/5 Retail |
American General Life & A/G PC |
|
4.56 |
% |
|
|
3,883 |
|
|
3,934 |
|
12/01/21 |
|
Port Imperial 4/5 Hotel (c) |
Fifth Third Bank |
|
LIBOR+3.40 |
% |
|
|
94,000 |
|
|
74,000 |
|
04/09/22 |
|
Emery at Overlook Ridge (d) |
Fifth Third Bank |
|
LIBOR+2.50 |
% |
|
|
56,207 |
|
|
24,064 |
|
05/16/22 |
|
Port Imperial South 9 (e) |
Bank of New York Mellon |
|
LIBOR+2.13 |
% |
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39,883 |
|
|
11,615 |
|
12/19/22 |
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Portside 7 |
CBRE Capital Markets/FreddieMac |
|
3.57 |
% |
|
|
58,998 |
|
|
58,998 |
|
08/01/23 |
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Short Hills Residential (f) |
People's United Bank |
|
LIBOR+2.15 |
% |
|
|
33,088 |
|
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9,431 |
|
03/26/23 |
|
250 Johnson |
Nationwide Life Insurance Company |
|
3.74 |
% |
|
|
43,000 |
|
|
43,000 |
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08/01/24 |
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Liberty Towers (g) |
American General Life Insurance Company |
|
3.37 |
% |
|
|
265,000 |
|
|
232,000 |
|
10/01/24 |
|
The Charlotte (h) |
QuadReal Finance |
|
LIBOR+2.70 |
% |
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|
126,560 |
|
|
5,144 |
|
12/01/24 |
|
Portside 5/6 (l) |
New York Life Insurance Company |
4.56 |
% |
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|
97,000 |
|
|
97,000 |
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03/10/26 |
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Marbella |
New York Life Insurance Company |
|
4.17 |
% |
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|
131,000 |
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|
131,000 |
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08/10/26 |
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Marbella II |
New York Life Insurance Company |
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4.29 |
% |
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|
117,000 |
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|
117,000 |
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08/10/26 |
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101 Hudson |
Wells Fargo CMBS |
|
3.20 |
% |
|
|
250,000 |
|
|
250,000 |
|
10/11/26 |
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Worcester |
MUFG Union Bank |
|
LIBOR+1.84 |
% |
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|
63,000 |
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|
63,000 |
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12/10/26 |
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Short Hills Portfolio (i) |
Wells Fargo CMBS |
|
4.15 |
% |
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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 |
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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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100,000 |
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100,000 |
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01/10/29 |
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Soho Lofts (j) |
New York Community Bank |
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3.77 |
% |
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160,000 |
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160,000 |
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07/01/29 |
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Riverwatch Commons (j) |
New York Community Bank |
|
3.79 |
% |
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30,000 |
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|
30,000 |
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07/01/29 |
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111 River St. |
Athene Annuity and Life Company |
|
3.90 |
% |
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|
150,000 |
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150,000 |
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09/01/29 |
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Port Imperial South 4/5 Garage (k) |
American General Life & A/G PC |
|
4.85 |
% |
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32,914 |
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32,600 |
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12/01/29 |
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Principal balance outstanding |
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2,182,570 |
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1,925,038 |
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Unamortized deferred financing costs |
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(15,048) |
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(17,004) |
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Total mortgages, loans payable and other obligations, net |
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$ |
2,167,522 |
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$ |
1,908,034 |
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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) |
This mortgage loan, which includes unamortized fair value adjustment of $0.5 million as of September 30, 2020, was assumed by the Company in April 2017 with the consolidation of all the interests in Monaco Towers. The Company has agreed to terms with the current lender to refinance the existing mortgage at or before maturity. |
(c) |
The loan required an initial debt service coverage test for quarter ended September 30, 2020. Subsequent to September 30, 2020, the Company executed an agreement moving the initial debt service coverage test to March 31, 2021. The Company has guaranteed $19.5 million of the outstanding principal, subject to certain conditions. |
(d) |
This construction loan has a maximum borrowing capacity of $62 million and provides, subject to certain conditions, one 18 month extension option with a fee of 25 basis points, of which the Company has guaranteed 15 percent of the outstanding principal, subject to certain conditions. |
(e) |
This construction loan has a maximum borrowing capacity of $92 million and provides, subject to certain conditions, one one year extension option with a fee of 15 basis points, of which the Company has guaranteed 10 percent of the outstanding principal, subject to certain conditions. |
(f) |
This construction loan has a maximum borrowing capacity of $64 million and provides, subject to certain conditions, one 18 month extension option with a fee of 30 basis points, of which the Company has guaranteed 15 percent of the outstanding principal, subject to certain conditions. |
(g) |
In January 2020, the Company increased the size of the loan on Liberty Towers to $265 million, generating $33 million of additional proceeds. |
(h) |
This construction loan has a LIBOR floor of 2.0 percent, has a maximum borrowing capacity of $300 million and provides, subject to certain conditions, one one year extension option with a fee of 25 basis points. |
(i) |
Properties, which are collateral for this mortgage loan, were classified as held for sale as of December 31, 2019. |
(j) |
Effective rate reflects the first five years of interest payments at a fixed rate. Interest payments after that period ends are based on LIBOR plus 2.75% annually. |
(k) |
The loan was modified to defer interest and principal payments for a six month period ending December 1, 2020. As of September 30, 2020, deferred interest of $0.5 million has been added to the principal balance. |
(l) |
The Company has guaranteed 10 percent of the outstanding principal, subject to certain conditions. |
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the nine months ended September 30, 2020 and 2019 was $72,874,000 and $75,120,000 (of which $3,862,000 and $3,848,000 pertained to properties classified as discontinued operations), respectively. Interest capitalized by the Company for the nine months ended September 30, 2020 and 2019 was $18,658,000 and $14,315,000, respectively (which amounts included $1,017,000 and $990,000 for the nine months ended September 30, 2020 and 2019, respectively, of interest capitalized on the Company’s investments in unconsolidated joint ventures which were substantially in development).
SUMMARY OF INDEBTEDNESS
As of September 30, 2020, the Company’s total indebtedness of $2,895,882,000 (weighted average interest rate of 3.66 percent) was comprised of $562,361,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average
rate of 2.83 percent) and fixed rate debt and other obligations of $2,333,521,000 (weighted average rate of 3.86 percent).
As of December 31, 2019, the Company’s total indebtedness of $2,808,518,000 (weighted average interest rate of 3.81 percent) was comprised of $509,656,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 3.54 percent) and fixed rate debt and other obligations of $2,298,862,000 (weighted average rate of 3.87 percent).
|
| Mortgages, Loans Payable And Other Obligations |
10. MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS
The Company has mortgages, loans payable and other obligations which primarily consist of various loans collateralized by certain of the Company’s rental properties, land and development projects. As of September 30, 2020, 19 of the Company’s properties, with a total carrying value of approximately $2.8 billion and four of the Company’s land and development projects, with a total carrying value of approximately $645 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 September 30, 2020.
A summary of the Company’s mortgages, loans payable and other obligations as of September 30, 2020 and December 31, 2019 is as follows (dollars in thousands):
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|
|
|
|
|
Effective |
|
|
|
September 30, |
|
|
December 31, |
|
|
|
Property/Project Name |
Lender |
|
Rate (a) |
|
|
|
2020 |
|
|
2019 |
|
Maturity |
|
Monaco (b) |
The Northwestern Mutual Life Insurance Co. |
|
3.15 |
% |
|
$ |
165,537 |
|
$ |
166,752 |
|
02/01/21 |
|
Port Imperial South 4/5 Retail |
American General Life & A/G PC |
|
4.56 |
% |
|
|
3,883 |
|
|
3,934 |
|
12/01/21 |
|
Port Imperial 4/5 Hotel (c) |
Fifth Third Bank |
|
LIBOR+3.40 |
% |
|
|
94,000 |
|
|
74,000 |
|
04/09/22 |
|
Emery at Overlook Ridge (d) |
Fifth Third Bank |
|
LIBOR+2.50 |
% |
|
|
56,207 |
|
|
24,064 |
|
05/16/22 |
|
Port Imperial South 9 (e) |
Bank of New York Mellon |
|
LIBOR+2.13 |
% |
|
|
39,883 |
|
|
11,615 |
|
12/19/22 |
|
Portside 7 |
CBRE Capital Markets/FreddieMac |
|
3.57 |
% |
|
|
58,998 |
|
|
58,998 |
|
08/01/23 |
|
Short Hills Residential (f) |
People's United Bank |
|
LIBOR+2.15 |
% |
|
|
33,088 |
|
|
9,431 |
|
03/26/23 |
|
250 Johnson |
Nationwide Life Insurance Company |
|
3.74 |
% |
|
|
43,000 |
|
|
43,000 |
|
08/01/24 |
|
Liberty Towers (g) |
American General Life Insurance Company |
|
3.37 |
% |
|
|
265,000 |
|
|
232,000 |
|
10/01/24 |
|
The Charlotte (h) |
QuadReal Finance |
|
LIBOR+2.70 |
% |
|
|
126,560 |
|
|
5,144 |
|
12/01/24 |
|
Portside 5/6 (l) |
New York Life Insurance Company |
4.56 |
% |
|
|
97,000 |
|
|
97,000 |
|
03/10/26 |
|
Marbella |
New York Life Insurance Company |
|
4.17 |
% |
|
|
131,000 |
|
|
131,000 |
|
08/10/26 |
|
Marbella II |
New York Life Insurance Company |
|
4.29 |
% |
|
|
117,000 |
|
|
117,000 |
|
08/10/26 |
|
101 Hudson |
Wells Fargo CMBS |
|
3.20 |
% |
|
|
250,000 |
|
|
250,000 |
|
10/11/26 |
|
Worcester |
MUFG Union Bank |
|
LIBOR+1.84 |
% |
|
|
63,000 |
|
|
63,000 |
|
12/10/26 |
|
Short Hills Portfolio (i) |
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 |
|
|
100,000 |
|
01/10/29 |
|
Soho Lofts (j) |
New York Community Bank |
|
3.77 |
% |
|
|
160,000 |
|
|
160,000 |
|
07/01/29 |
|
Riverwatch Commons (j) |
New York Community Bank |
|
3.79 |
% |
|
|
30,000 |
|
|
30,000 |
|
07/01/29 |
|
111 River St. |
Athene Annuity and Life Company |
|
3.90 |
% |
|
|
150,000 |
|
|
150,000 |
|
09/01/29 |
|
Port Imperial South 4/5 Garage (k) |
American General Life & A/G PC |
|
4.85 |
% |
|
|
32,914 |
|
|
32,600 |
|
12/01/29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal balance outstanding |
|
|
|
|
|
2,182,570 |
|
|
1,925,038 |
|
|
|
Unamortized deferred financing costs |
|
|
|
|
|
(15,048) |
|
|
(17,004) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgages, loans payable and other obligations, net |
|
|
|
|
$ |
2,167,522 |
|
$ |
1,908,034 |
|
|
|
|
|
(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) |
This mortgage loan, which includes unamortized fair value adjustment of $0.5 million as of September 30, 2020, was assumed by the Company in April 2017 with the consolidation of all the interests in Monaco Towers. The Company has agreed to terms with the current lender to refinance the existing mortgage at or before maturity. |
(c) |
The loan required an initial debt service coverage test for quarter ended September 30, 2020. Subsequent to September 30, 2020, the Company executed an agreement moving the initial debt service coverage test to March 31, 2021. The Company has guaranteed $19.5 million of the outstanding principal, subject to certain conditions. |
(d) |
This construction loan has a maximum borrowing capacity of $62 million and provides, subject to certain conditions, one 18 month extension option with a fee of 25 basis points, of which the Company has guaranteed 15 percent of the outstanding principal, subject to certain conditions. |
(e) |
This construction loan has a maximum borrowing capacity of $92 million and provides, subject to certain conditions, one one year extension option with a fee of 15 basis points, of which the Company has guaranteed 10 percent of the outstanding principal, subject to certain conditions. |
(f) |
This construction loan has a maximum borrowing capacity of $64 million and provides, subject to certain conditions, one 18 month extension option with a fee of 30 basis points, of which the Company has guaranteed 15 percent of the outstanding principal, subject to certain conditions. |
(g) |
In January 2020, the Company increased the size of the loan on Liberty Towers to $265 million, generating $33 million of additional proceeds. |
(h) |
This construction loan has a LIBOR floor of 2.0 percent, has a maximum borrowing capacity of $300 million and provides, subject to certain conditions, one one year extension option with a fee of 25 basis points. |
(i) |
Properties, which are collateral for this mortgage loan, were classified as held for sale as of December 31, 2019. |
(j) |
Effective rate reflects the first five years of interest payments at a fixed rate. Interest payments after that period ends are based on LIBOR plus 2.75% annually. |
(k) |
The loan was modified to defer interest and principal payments for a six month period ending December 1, 2020. As of September 30, 2020, deferred interest of $0.5 million has been added to the principal balance. |
(l) |
The Company has guaranteed 10 percent of the outstanding principal, subject to certain conditions. |
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the nine months ended September 30, 2020 and 2019 was $72,874,000 and $75,120,000 (of which $3,862,000 and $3,848,000 pertained to properties classified as discontinued operations), respectively. Interest capitalized by the Company for the nine months ended September 30, 2020 and 2019 was $18,658,000 and $14,315,000, respectively (which amounts included $1,017,000 and $990,000 for the nine months ended September 30, 2020 and 2019, respectively, of interest capitalized on the Company’s investments in unconsolidated joint ventures which were substantially in development).
SUMMARY OF INDEBTEDNESS
As of September 30, 2020, the Company’s total indebtedness of $2,895,882,000 (weighted average interest rate of 3.66 percent) was comprised of $562,361,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average
rate of 2.83 percent) and fixed rate debt and other obligations of $2,333,521,000 (weighted average rate of 3.86 percent).
As of December 31, 2019, the Company’s total indebtedness of $2,808,518,000 (weighted average interest rate of 3.81 percent) was comprised of $509,656,000 of unsecured revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 3.54 percent) and fixed rate debt and other obligations of $2,298,862,000 (weighted average rate of 3.87 percent).
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