| 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. As of December 31, 2012, 31 of the Company’s properties, with a total book value of approximately $1.0 billion, are encumbered by the Company’s mortgages and loans payable. Payments on mortgages, loans payable and other obligations are generally due in monthly installments of principal and interest, or interest only.
A summary of the Company’s mortgages, loans payable and other obligations as of December 31, 2012 and 2011 is as follows: (dollars in thousands)
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December 31,
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Property Name
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Lender
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Effective
Rate (a)
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2012
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2011
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Maturity
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2200 Renaissance Boulevard (b)
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Wachovia CMBS
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5.888
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%
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-
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$
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16,171
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-
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Soundview Plaza (c)
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Morgan Stanley Mortgage Capital
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6.015
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%
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-
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15,531
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-
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One Grande Commons (d)
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Capital One Bank
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LIBOR+2.00
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%
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-
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11,000
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-
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581 Main Street (e)
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Valley National Bank
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6.935
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%
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-
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16,338
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-
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Port Imperial South (h)
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Wells Fargo Bank N.A.
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LIBOR+2.75
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%
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$
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42,168
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-
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03/23/13
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9200 Edmonston Road
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Principal Commercial Funding L.L.C.
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5.534
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%
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4,305
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4,479
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05/01/13
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Port Imperial South 4/5 (h)
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Wells Fargo Bank N.A.
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LIBOR+3.50
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%
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34,889
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-
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09/30/13
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6305 Ivy Lane
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John Hancock Life Insurance Co.
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5.525
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%
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5,984
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6,245
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01/01/14
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395 West Passaic
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State Farm Life Insurance Co.
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6.004
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%
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10,231
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10,781
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05/01/14
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6301 Ivy Lane
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John Hancock Life Insurance Co.
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5.520
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%
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5,667
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5,899
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07/01/14
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35 Waterview Boulevard
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Wachovia CMBS
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6.348
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%
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18,746
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19,051
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08/11/14
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6 Becker, 85 Livingston,
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Wachovia CMBS
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10.220
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%
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63,126
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62,127
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08/11/14
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75 Livingston &
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20 Waterview
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4 Sylvan
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Wachovia CMBS
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10.190
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%
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14,485
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14,438
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08/11/14
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10 Independence
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Wachovia CMBS
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12.440
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%
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16,251
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15,908
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08/11/14
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4 Becker
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Wachovia CMBS
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9.550
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%
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38,274
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37,769
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05/11/16
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5 Becker
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Wachovia CMBS
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12.830
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%
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12,507
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12,056
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05/11/16
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210 Clay
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Wachovia CMBS
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13.420
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%
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12,275
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11,844
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05/11/16
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51 Imclone
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Wachovia CMBS
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8.390
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%
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3,878
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3,886
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05/11/16
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Various (f)
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Prudential Insurance
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6.332
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%
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149,281
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150,000
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01/15/17
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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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30,395
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31,002
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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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228,481
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231,603
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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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223 Canoe Brook Road (h)
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The Provident Bank
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4.375
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%
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3,945
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-
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02/01/19
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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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19,025
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19,241
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02/01/19
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One River Center (g)
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Guardian Life Insurance Co.
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7.311
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%
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43,582
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44,079
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02/01/19
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Total mortgages, loans payable and other obligations
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$
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757,495
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$
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739,448
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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 28, 2012, the Company transferred the deed for 2200 Renaissance Boulevard to the lender in satisfaction of its obligations. See Note 7: Discontinued Operations.
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(c)
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On September 4, 2012, the Company repaid this mortgage loan at par, using borrowings under the Company’s unsecured revolving credit facility.
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(d)
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On November 21, 2012, the Company repaid this mortgage loan at par, using proceeds from the sale of senior unsecured notes on November 20, 2012.
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(e)
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On November 20, 2012, the Company repaid this mortgage loan, including a prepayment premium, using proceeds from the sale of senior unsecured notes on November 20, 2012. In connection with this payoff, the Company recorded approximately $0.5 million as a loss from early extinguishment of debt.
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(f)
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Mortgage is collateralized by seven properties. The Operating Partnership has agreed, subject to certain conditions, to guarantee repayment of a portion of the loan.
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(g)
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Mortgage is collateralized by the three properties comprising One River Center.
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(h)
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Mortgages assumed in connection with the Roseland Transaction. See Note 3: Roseland Transaction.
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SCHEDULED PRINCIPAL PAYMENTS
Scheduled principal payments and related weighted average annual effective interest rates for the Company’s senior unsecured notes (see Note 8), unsecured revolving credit facility and mortgages, loans payable and other obligations as of December 31, 2012 are as follows: (dollars in thousands)
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Scheduled
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Principal
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Weighted Avg.
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Amortization
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Maturities
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Total
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Effective Interest Rate of
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Period
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($000’s)
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($000’s)
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($000’s)
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Future Repayments (a)
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2013
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$
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10,887
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$
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181,286
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$
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192,173
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4.36
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%
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2014
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10,185
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335,257
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345,442
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6.82
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%
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2015
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8,634
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150,000
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158,634
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5.40
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%
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2016
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8,425
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273,120
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281,545
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7.16
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%
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2017
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6,423
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391,151
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397,574
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4.12
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%
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Thereafter
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6,195
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841,881
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848,076
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6.38
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%
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Sub-total
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50,749
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2,172,695
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2,223,444
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Adjustment for unamortized debt
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discount/premium and
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mark-to-market, net, as of
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December 31, 2012
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(19,055)
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-
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(19,055)
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Totals/Weighted Average
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$
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31,694
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$
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2,172,695
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$
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2,204,389
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5.86
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%
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(a) The actual weighted average LIBOR rate for the Company’s outstanding variable rate debt was 0.23 percent as of December 31, 2012.
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CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the years ended December 31, 2012, 2011 and 2010 was $120,089,000, $116,772,000 and $153,608,000, respectively. Interest capitalized by the Company for the years ended December 31, 2012, 2011 and 2010 was $4,342,000, $1,081,000 and $1,912,000, respectively.
SUMMARY OF INDEBTEDNESS
As of December 31, 2012, the Company’s total indebtedness of $2,204,389,000 (weighted average interest rate of 5.86 percent) was comprised of $77,057,000 of variable rate mortgage debt (weighted average rate of 3.32 percent) and fixed rate debt and other obligations of $2,127,332,000 (weighted average rate of 5.95 percent).
As of December 31, 2011, the Company’s total indebtedness of $1,914,215,000 (weighted average interest rate of 6.46 percent) was comprised of $66,500,000 of revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 1.77 percent) and fixed rate debt and other obligations of $1,847,715,000 (weighted average rate of 6.63 percent).
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