| 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 December 31, 2015, 23 of the Company’s properties, with a total carrying value of approximately $739 million, and four of the Company’s land and development projects, with a total carrying value of approximately $215 million, are encumbered by the Company’s mortgages and loans payable. Payments on mortgages, loans payable and other obligations are generally due in monthly installments of principal and interest, or interest only. Except as noted below, the Company was in compliance with its debt covenants under its mortgages and loans payable as of December 31, 2015.
A summary of the Company’s mortgages, loans payable and other obligations as of December 31, 2015 and 2014 is as follows: (dollars in thousands)
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Effective
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December 31,
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Property/Project Name
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Lender
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Rate (a)
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2015
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2014
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Maturity
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Overlook - Site IIID,IIIC, IIIA &
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Overlook - Site IIB (b)
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Wells Fargo Bank N.A.
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-
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-
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$
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23,047
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-
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10 Independence, 4 Sylvan, 210 Clay &
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5 Becker (c)
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Wells Fargo CMBS
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-
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-
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58,696
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-
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6 Becker, 85 Livingston,
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75 Livingston & 20 Waterview
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Wells Fargo CMBS
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10.260
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%
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$
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63,279
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65,035
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08/11/14
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(d)
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9200 Edmonston Road
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Principal Commercial Funding L.L.C.
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9.780
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%
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3,793
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3,951
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05/01/15
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(e)
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Port Imperial South
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Wells Fargo Bank N.A.
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LIBOR+1.75
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%
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34,962
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44,119
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01/17/16
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(f)
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4 Becker
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Wells Fargo CMBS
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9.550
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%
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40,083
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39,421
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05/11/16
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Curtis Center (g)
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CCRE & PREFG
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LIBOR+5.912
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%
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(h)
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64,000
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64,000
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10/09/16
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Various (i)
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Prudential Insurance
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6.332
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%
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143,513
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145,557
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01/15/17
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150 Main St.
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Webster Bank
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LIBOR+2.35
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%
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10,937
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1,193
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(j)
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03/30/17
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23 Main Street
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JPMorgan CMBS
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5.587
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%
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28,541
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29,210
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09/01/18
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Harborside Plaza 5
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The Northwestern Mutual Life
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6.842
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%
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217,736
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221,563
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11/01/18
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Insurance Co. & New York Life
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Insurance Co.
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100 Walnut Avenue
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Guardian Life Insurance Co.
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7.311
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%
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18,273
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18,542
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02/01/19
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One River Center (k)
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Guardian Life Insurance Co.
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7.311
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%
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41,859
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42,476
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02/01/19
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Park Square
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Wells Fargo Bank N.A.
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LIBOR+1.872
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%
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(l)
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27,500
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27,500
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04/10/19
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Port Imperial South 4/5 Retail
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American General Life & A/G PC
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4.559
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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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Port Imperial South 4/5 Garage
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American General Life & A/G PC
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4.853
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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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Total mortgages, loans payable and other obligations
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$
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731,076
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$
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820,910
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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 March 27, 2015, the Company repaid these loans, which had interest rates ranging from LIBOR plus 2.50 to 3.50 percent, at par, using borrowings on the Company's unsecured revolving credit facility.
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(c)
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During the year ended December 31, 2015, the Company transferred the deeds for these properties to the lender in satisfaction of its obligations on the loans with interest rates ranging from 10.260% to 19.450%. See Note 3: Recent Transactions - Dispositions.
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(d)
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Mortgage is cross collateralized by the four properties. The loan was not repaid at maturity and the Company is in discussions with the lender regarding potential options in satisfaction of the obligation.
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(e)
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Excess cash flow, as defined, is being held by the lender for re-leasing costs. The deed for the property was placed in escrow and is available to the lender in the event of default or non-payment at maturity. The mortgage loan was not repaid at maturity on May 1, 2015. The Company is in discussions with the lender regarding a further extension of the loan.
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(f)
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The loan was repaid in full at maturity, using borrowings from the Company's revolving credit facility.
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(g)
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The Company owns a 50 percent tenants-in-common interest in the Curtis Center property. The Company’s $64.0 million loan consists of its 50 percent interest in a $102 million senior loan with a current rate of 3.491 percent at December 31, 2015 and its 50 percent interest in a $26 million mezzanine loan (with a maximum borrowing capacity of $48 million) with a current rate of 9.831 percent at December 31, 2015. The senior loan rate is based on a floating rate of one-month LIBOR plus 329 basis points and the mezzanine loan rate is based on a floating rate of one-month LIBOR plus 950 basis points. The Company has entered into LIBOR caps for the periods of the loans. The loans provide for three one-year extension options.
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(h)
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The effective interest rate includes amortization of deferred financing costs of 1.362 percent.
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(i)
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Mortgage is cross collateralized by seven properties. The Company has agreed, subject to certain conditions, to guarantee repayment of $61.1 million of the loan.
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(j)
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This construction loan has a maximum borrowing capacity of $28.8 million.
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(k)
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Mortgage is collateralized by the three properties comprising One River Center.
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(l)
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The effective interest rate includes amortization of deferred financing costs of 0.122 percent.
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SCHEDULED PRINCIPAL PAYMENTS
Scheduled principal payments for the Company’s senior unsecured notes (see Note 8), unsecured revolving credit facility (see Note 9) and mortgages, loans payable and other obligations as of December 31, 2015 are as follows: (dollars in thousands)
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Scheduled
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Principal
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Period
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Amortization
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Maturities
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Total
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2016
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$
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8,125
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$
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406,465
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$
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414,590
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2017
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7,275
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557,088
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564,363
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2018
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7,311
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231,536
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238,847
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2019
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723
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331,567
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332,290
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2020
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569
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-
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569
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Thereafter
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5,759
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605,206
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610,965
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Sub-total
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29,762
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2,131,862
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2,161,624
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Adjustment for unamortized debt
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discount/premium, net, as of
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December 31, 2015
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(6,704)
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-
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(6,704)
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Totals/Weighted Average
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$
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23,058
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$
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2,131,862
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$
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2,154,920
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CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the years ended December 31, 2015, 2014 and 2013 was $115,123,000, $119,664,000 and $123,213,000, respectively. Interest capitalized by the Company for the years ended December 31, 2015, 2014 and 2013 was $16,217,000, $15,470,000, and $12,885,000, respectively (of which these amounts included $5,325,000, $4,646,000 and $1,326,000 for the years ended December 31, 2015, 2014 and 2013, respectively, for interest capitalized on the Company’s investments in unconsolidated joint ventures which were substantially in development).
SUMMARY OF INDEBTEDNESS
As of December 31, 2015, the Company’s total indebtedness of $2,154,920,000 (weighted average interest rate of 5.22 percent) was comprised of $292,399,000 of revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 2.81 percent) and fixed rate debt and other obligations of $1,862,521,000 (weighted average rate of 5.60 percent).
As of December 31, 2014, the Company’s total indebtedness of $2,088,654,000 (weighted average interest rate of 5.64 percent) was comprised of $159,860,000 of variable rate mortgage debt (weighted average rate of 3.83 percent) and fixed rate debt and other obligations of $1,928,794,000 (weighted average rate of 5.79 percent).
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