Annual report pursuant to Section 13 and 15(d)

DEFERRED CHARGES AND OTHER ASSETS, NET (Tables)

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DEFERRED CHARGES AND OTHER ASSETS, NET (Tables)
 12 Months Ended
Dec. 31, 2024
Other Assets [Abstract]  
Schedule of Deferred Charges and Other Assets
(dollars in thousands) December 31,
2024		 December 31,
2023
Deferred leasing costs $ 4,765  $ 8,324 
Deferred financing costs (a) 6,296  771 
Deferred charges 11,061  9,095 
Accumulated amortization (4,558) (5,063)
Deferred charges, net 6,503  4,032 
In-place lease values, related intangibles and other assets, net (b)(c) 9,519  10,034 
Right of use assets (d) 5,145  6,161 
Prepaid expenses and other assets, net 27,309  33,729 
Total deferred charges and other assets, net $ 48,476  $ 53,956 
(a)This amount relates to the deferred financing costs associated with the revolving credit facility. Deferred financing costs related to all other debt liabilities are netted against those debt liabilities for all periods presented. See Note 2: Significant Accounting Policies – Deferred Financing Costs.
(b)The value of acquired above and below market lease intangibles in which the Company is the lessor are recognized in rental revenue over the terms of the respective leases. The impact of amortizing the acquired above and below-market lease intangibles increased revenue by approximately $30 thousand, $0.1 million and $0.2 million for the years ended December 31, 2024, 2023 and 2022, respectively.
(c)The value of acquired above market lease intangibles in which the Company is the lessee and in-place lease intangibles in which the Company is the lessor are amortized to expense over the remaining initial terms of the respective leases. The impact of the amortization of acquired in-place lease values is included in depreciation and amortization expense and amounted to approximately $0.5 million, $2.0 million and $1.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.
(d)This amount has a corresponding liability of $6.5 million and $7.4 million as of December 31, 2024 and 2023, respectively, which is included in Accounts payable, accrued expense and other liabilities. See Note 12: Commitments and Contingencies – Office and Ground Lease Agreements for further details.
Schedule of Interest Rate Caps
The Company entered into the following interest rate caps during the year ended December 31, 2024 (dollars in thousands):
Hedged Item
Designation
 Effective Date Maturity Date
Notional Amount
Strike Rate
Term Loan
Cash Flow
 6/28/2024 7/22/2026 $ 55,000  3.50  %
RiverHouse 9 at Port Imperial Mortgage
Cash Flow
 7/1/2024 7/1/2026 $ 110,000  3.50  %
Term Loan
Cash Flow
 8/1/2024 7/22/2026 $ 43,000  3.50  %
Term Loan
Cash Flow
 9/30/2024 7/22/2026 $ 102,000  3.50  %
Revolving Credit Facility
Mark to Market (a)
 9/30/2024 6/22/2025 $ 150,000  3.50  %
The Upton Mortgage
Cash Flow
 11/1/2024 11/1/2026 $ 75,000  3.50  %
(a)The Company elected to not designate this interest rate cap as a cash flow hedge at inception and therefore changes in the fair value of the derivative are recorded in earnings. For the year ended December 31, 2024, the Company recorded $0.2 million of fair value adjustments as an increase in Interest expense in the Company's Consolidated Statements of Operations.
Schedule of Fair Value of the Derivative Financial Instruments
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2024 and 2023 (dollars in thousands):
  Fair Value  
Asset Derivatives designated
as hedging instruments		 December 31,
2024		 December 31,
2023		 Balance sheet location
Interest rate caps designated as hedging instruments $ 4,953  $ 5,098  Deferred charges and other assets, net
Interest rate caps not designated as hedging instruments $ 525  $ —  Deferred charges and other assets, net
Schedule of Cash Flow Hedging, Derivative Financial Instruments on the Income Statement
The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022 (dollars in thousands):
Derivatives in Cash Flow Hedging Relationships
 Amount of Gain or (Loss) Recognized in OCI on Derivative (a)
 Location of Gain or (Loss) Reclassified
from Accumulated OCI into Income
 Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (a) (b)
 Total Amount of Interest Expense presented in the Consolidated Statements of
Operations
Year Ended December 31, 2024 2023 2022   2024 2023 2022 2024 2023 2022
Interest rate caps $526 $1,184 $5,032 Interest expense $2,967 $3,559 $666 $(87,976) $(89,355) $(66,381)
(a)Amounts exclude net gains of $632 thousand, zero and zero recognized on unconsolidated jointly owned investments for the years ended December 31, 2024, 2023 and 2022, respectively.
(b)The gain or loss reclassified from Accumulated OCI into Income is recorded in Interest Expense.