| 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, 2019, 19 of the Company’s properties, with a total carrying value of approximately $2.9 billion and four of the Company’s land and development projects, with a total carrying value of approximately $381 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, 2019.
A summary of the Company’s mortgages, loans payable and other obligations as of December 31, 2019 and 2018 is as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
Property/Project Name |
Lender |
|
Rate (a) |
|
|
|
2019 |
|
|
2018 |
|
Maturity |
|
Park Square (b) |
Wells Fargo Bank N.A. |
|
LIBOR+1.87 |
% |
|
$ |
- |
|
$ |
25,167 |
|
- |
|
Alterra I & II (c) |
Capital One/FreddieMac |
|
3.85 |
% |
|
|
- |
|
|
100,000 |
|
- |
|
The Chase at Overlook Ridge (c) |
New York Community Bank |
|
3.74 |
% |
|
|
- |
|
|
135,750 |
|
- |
|
Monaco (d) |
The Northwestern Mutual Life Insurance Co. |
|
3.15 |
% |
|
|
166,752 |
|
|
168,370 |
|
02/01/21 |
|
Port Imperial South 4/5 Retail |
American General Life & A/G PC |
|
4.56 |
% |
|
|
3,934 |
|
|
4,000 |
|
12/01/21 |
|
Port Imperial 4/5 Hotel (e) |
Fifth Third Bank |
|
LIBOR+3.40 |
% |
|
|
74,000 |
|
|
73,350 |
|
04/09/22 |
|
Chase III (f) |
Fifth Third Bank |
|
LIBOR+2.50 |
% |
|
|
24,064 |
|
|
- |
|
05/16/22 |
|
Port Imperial South 9 (g) |
Bank of New York Mellon |
|
LIBOR+2.13 |
% |
|
|
11,615 |
|
|
- |
|
12/19/22 |
|
Portside 7 |
CBRE Capital Markets/FreddieMac |
|
3.57 |
% |
|
|
58,998 |
|
|
58,998 |
|
08/01/23 |
|
Short Hills Residential (h) |
People's United Bank |
|
LIBOR+2.15 |
% |
|
|
9,431 |
|
|
- |
|
03/26/23 |
|
250 Johnson (i) |
Nationwide Life Insurance Company |
|
3.74 |
% |
|
|
43,000 |
|
|
41,769 |
|
08/01/24 |
|
Liberty Towers (j) |
American General Life Insurance Company |
|
3.37 |
% |
|
|
232,000 |
|
|
- |
|
10/01/24 |
|
The Charlotte (k) |
QuadReal Finance |
|
LIBOR+2.70 |
% |
|
|
5,144 |
|
|
- |
|
12/01/24 |
|
Portside 5/6 |
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 (l) |
New York Life Insurance Company |
|
4.29 |
% |
|
|
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 |
|
|
56,892 |
|
12/10/26 |
|
Short Hills Portfolio (m) |
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 |
The Northwestern Mutual Life Insurance Co. |
|
4.52 |
% |
|
|
100,000 |
|
|
100,000 |
|
01/10/29 |
|
Soho Lofts (n) |
New York Community Bank |
|
3.77 |
% |
|
|
160,000 |
|
|
- |
|
07/01/29 |
|
Riverwatch Commons (n) |
New York Community Bank |
|
3.79 |
% |
|
|
30,000 |
|
|
- |
|
07/01/29 |
|
111 River St. |
Athene Annuity and Life Company |
|
3.90 |
% |
|
|
150,000 |
|
|
- |
|
09/01/29 |
|
Port Imperial South 4/5 Garage |
American General Life & A/G PC |
|
4.85 |
% |
|
|
32,600 |
|
|
32,600 |
|
12/01/29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal balance outstanding |
|
|
|
|
|
1,925,038 |
|
|
1,440,396 |
|
|
|
Unamortized deferred financing costs |
|
|
|
|
|
(17,004) |
|
|
(8,998) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgages, loans payable and other obligations, net |
|
|
|
|
$ |
1,908,034 |
|
$ |
1,431,398 |
|
|
|
|
|
(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 16, 2019, the loan was repaid using proceeds from the disposition of Park Square. |
(c) |
This mortgage was assumed by the buyer upon the Company's disposition of the properties on October 23, 2019, which was a non-cash transaction. |
(d) |
This mortgage loan, which includes unamortized fair value adjustment of $1.8 million as of December 31, 2019, was assumed by the Company in April 2017 with the consolidation of all the interests in Monaco Towers. |
(e) |
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. On June 28, 2019, the Company paid down the loan by $30 million using proceeds from the June 28, 2019 Rockpoint transaction. See Note 12: Commitments and Contingencies - Construction Projects. At its original scheduled maturity in October 2019, the loan was amended and restated with a new interest rate and a new maturity date of April 2022. |
(f) |
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. |
(g) |
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. |
(h) |
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 |
(i) |
On July 29, 2019, the Company repaid the construction loan from the proceeds of a new $43 million mortgage loan that matures on August 1, 2024. |
(j) |
In January 2020, the Company increased the size of the loan on Liberty Towers to $265 million, generating $33 million of additional proceeds. |
(k) |
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. |
(l) |
On January 31, 2019, the Company acquired the majority equity partner's 50 percent interest. Concurrently with the closing, the joint venture repaid in full the property's $74.7 million mortgage loan and obtained a new loan in the amount of $117 million. |
(m) |
Properties, which are collateral for this mortgage loan, were classified as held for sale as of December 31, 2019. |
(n) |
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. |
SCHEDULED PRINCIPAL PAYMENTS
Scheduled principal payments for the Company’s senior unsecured notes (see Note 8), unsecured revolving credit facility and term loan (see Note 9) and mortgages, loans payable and other obligations (See Note 10) as of December 31, 2019 are as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
Scheduled |
|
|
Principal |
|
|
|
Period |
|
Amortization |
|
|
Maturities |
|
|
Total |
2020 |
$ |
569 |
|
$ |
- |
|
$ |
569 |
2021 |
|
591 |
|
|
497,800 |
|
|
498,391 |
2022 |
|
550 |
|
|
409,678 |
|
|
410,228 |
2023 |
|
2,323 |
|
|
343,429 |
|
|
345,752 |
2024 |
|
3,927 |
|
|
280,144 |
|
|
284,071 |
2025 |
|
3,799 |
|
|
- |
|
|
3,799 |
Thereafter |
|
14,701 |
|
|
1,269,774 |
|
|
1,284,475 |
Sub-total |
|
26,460 |
|
|
2,800,825 |
|
|
2,827,285 |
Adjustment for unamortized debt |
|
|
|
|
|
|
|
|
discount/premium, net |
|
|
|
|
|
|
|
|
December 31, 2019 |
|
(2,170) |
|
|
- |
|
|
(2,170) |
Unamortized mark to market |
|
1,752 |
|
|
- |
|
|
1,752 |
Unamortized deferred financing costs |
|
(18,349) |
|
|
- |
|
|
(18,349) |
|
|
|
|
|
|
|
|
|
Totals |
$ |
7,693 |
|
$ |
2,800,825 |
|
$ |
2,808,518 |
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the years ended December 31, 2019, 2018 and 2017 was $108,277,000 (of which $1,278,000 pertained to properties classified as discontinued operations) $97,744,000 and $103,559,000, respectively. Interest capitalized by the Company for the years ended December 31, 2019, 2018 and 2017 was $19,325,000, $27,047,000, and $20,240,000, respectively (which amounts included $1,339,000, $816,000 and $1,056,000 for the years ended December 31, 2019, 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 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).
As of December 31, 2018, the Company’s total indebtedness of $2,792,651,000 (weighted average interest rate of 3.89 percent) was comprised of $309,705,000 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 $2,482,946,000 (weighted average rate of 3.76 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 December 31, 2019, 19 of the Company’s properties, with a total carrying value of approximately $2.9 billion and four of the Company’s land and development projects, with a total carrying value of approximately $381 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, 2019.
A summary of the Company’s mortgages, loans payable and other obligations as of December 31, 2019 and 2018 is as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
Property/Project Name |
Lender |
|
Rate (a) |
|
|
|
2019 |
|
|
2018 |
|
Maturity |
|
Park Square (b) |
Wells Fargo Bank N.A. |
|
LIBOR+1.87 |
% |
|
$ |
- |
|
$ |
25,167 |
|
- |
|
Alterra I & II (c) |
Capital One/FreddieMac |
|
3.85 |
% |
|
|
- |
|
|
100,000 |
|
- |
|
The Chase at Overlook Ridge (c) |
New York Community Bank |
|
3.74 |
% |
|
|
- |
|
|
135,750 |
|
- |
|
Monaco (d) |
The Northwestern Mutual Life Insurance Co. |
|
3.15 |
% |
|
|
166,752 |
|
|
168,370 |
|
02/01/21 |
|
Port Imperial South 4/5 Retail |
American General Life & A/G PC |
|
4.56 |
% |
|
|
3,934 |
|
|
4,000 |
|
12/01/21 |
|
Port Imperial 4/5 Hotel (e) |
Fifth Third Bank |
|
LIBOR+3.40 |
% |
|
|
74,000 |
|
|
73,350 |
|
04/09/22 |
|
Chase III (f) |
Fifth Third Bank |
|
LIBOR+2.50 |
% |
|
|
24,064 |
|
|
- |
|
05/16/22 |
|
Port Imperial South 9 (g) |
Bank of New York Mellon |
|
LIBOR+2.13 |
% |
|
|
11,615 |
|
|
- |
|
12/19/22 |
|
Portside 7 |
CBRE Capital Markets/FreddieMac |
|
3.57 |
% |
|
|
58,998 |
|
|
58,998 |
|
08/01/23 |
|
Short Hills Residential (h) |
People's United Bank |
|
LIBOR+2.15 |
% |
|
|
9,431 |
|
|
- |
|
03/26/23 |
|
250 Johnson (i) |
Nationwide Life Insurance Company |
|
3.74 |
% |
|
|
43,000 |
|
|
41,769 |
|
08/01/24 |
|
Liberty Towers (j) |
American General Life Insurance Company |
|
3.37 |
% |
|
|
232,000 |
|
|
- |
|
10/01/24 |
|
The Charlotte (k) |
QuadReal Finance |
|
LIBOR+2.70 |
% |
|
|
5,144 |
|
|
- |
|
12/01/24 |
|
Portside 5/6 |
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 (l) |
New York Life Insurance Company |
|
4.29 |
% |
|
|
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 |
|
|
56,892 |
|
12/10/26 |
|
Short Hills Portfolio (m) |
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 |
The Northwestern Mutual Life Insurance Co. |
|
4.52 |
% |
|
|
100,000 |
|
|
100,000 |
|
01/10/29 |
|
Soho Lofts (n) |
New York Community Bank |
|
3.77 |
% |
|
|
160,000 |
|
|
- |
|
07/01/29 |
|
Riverwatch Commons (n) |
New York Community Bank |
|
3.79 |
% |
|
|
30,000 |
|
|
- |
|
07/01/29 |
|
111 River St. |
Athene Annuity and Life Company |
|
3.90 |
% |
|
|
150,000 |
|
|
- |
|
09/01/29 |
|
Port Imperial South 4/5 Garage |
American General Life & A/G PC |
|
4.85 |
% |
|
|
32,600 |
|
|
32,600 |
|
12/01/29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal balance outstanding |
|
|
|
|
|
1,925,038 |
|
|
1,440,396 |
|
|
|
Unamortized deferred financing costs |
|
|
|
|
|
(17,004) |
|
|
(8,998) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgages, loans payable and other obligations, net |
|
|
|
|
$ |
1,908,034 |
|
$ |
1,431,398 |
|
|
|
|
|
(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 16, 2019, the loan was repaid using proceeds from the disposition of Park Square. |
(c) |
This mortgage was assumed by the buyer upon the Company's disposition of the properties on October 23, 2019, which was a non-cash transaction. |
(d) |
This mortgage loan, which includes unamortized fair value adjustment of $1.8 million as of December 31, 2019, was assumed by the Company in April 2017 with the consolidation of all the interests in Monaco Towers. |
(e) |
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. On June 28, 2019, the Company paid down the loan by $30 million using proceeds from the June 28, 2019 Rockpoint transaction. See Note 12: Commitments and Contingencies - Construction Projects. At its original scheduled maturity in October 2019, the loan was amended and restated with a new interest rate and a new maturity date of April 2022. |
(f) |
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. |
(g) |
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. |
(h) |
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 |
(i) |
On July 29, 2019, the Company repaid the construction loan from the proceeds of a new $43 million mortgage loan that matures on August 1, 2024. |
(j) |
In January 2020, the Company increased the size of the loan on Liberty Towers to $265 million, generating $33 million of additional proceeds. |
(k) |
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. |
(l) |
On January 31, 2019, the Company acquired the majority equity partner's 50 percent interest. Concurrently with the closing, the joint venture repaid in full the property's $74.7 million mortgage loan and obtained a new loan in the amount of $117 million. |
(m) |
Properties, which are collateral for this mortgage loan, were classified as held for sale as of December 31, 2019. |
(n) |
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. |
SCHEDULED PRINCIPAL PAYMENTS
Scheduled principal payments for the Company’s senior unsecured notes (see Note 8), unsecured revolving credit facility and term loan (see Note 9) and mortgages, loans payable and other obligations (See Note 10) as of December 31, 2019 are as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
Scheduled |
|
|
Principal |
|
|
|
Period |
|
Amortization |
|
|
Maturities |
|
|
Total |
2020 |
$ |
569 |
|
$ |
- |
|
$ |
569 |
2021 |
|
591 |
|
|
497,800 |
|
|
498,391 |
2022 |
|
550 |
|
|
409,678 |
|
|
410,228 |
2023 |
|
2,323 |
|
|
343,429 |
|
|
345,752 |
2024 |
|
3,927 |
|
|
280,144 |
|
|
284,071 |
2025 |
|
3,799 |
|
|
- |
|
|
3,799 |
Thereafter |
|
14,701 |
|
|
1,269,774 |
|
|
1,284,475 |
Sub-total |
|
26,460 |
|
|
2,800,825 |
|
|
2,827,285 |
Adjustment for unamortized debt |
|
|
|
|
|
|
|
|
discount/premium, net |
|
|
|
|
|
|
|
|
December 31, 2019 |
|
(2,170) |
|
|
- |
|
|
(2,170) |
Unamortized mark to market |
|
1,752 |
|
|
- |
|
|
1,752 |
Unamortized deferred financing costs |
|
(18,349) |
|
|
- |
|
|
(18,349) |
|
|
|
|
|
|
|
|
|
Totals |
$ |
7,693 |
|
$ |
2,800,825 |
|
$ |
2,808,518 |
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the years ended December 31, 2019, 2018 and 2017 was $108,277,000 (of which $1,278,000 pertained to properties classified as discontinued operations) $97,744,000 and $103,559,000, respectively. Interest capitalized by the Company for the years ended December 31, 2019, 2018 and 2017 was $19,325,000, $27,047,000, and $20,240,000, respectively (which amounts included $1,339,000, $816,000 and $1,056,000 for the years ended December 31, 2019, 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 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).
As of December 31, 2018, the Company’s total indebtedness of $2,792,651,000 (weighted average interest rate of 3.89 percent) was comprised of $309,705,000 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 $2,482,946,000 (weighted average rate of 3.76 percent).
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