| 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, 2013, 29 of the Company’s properties, with a total book value of approximately $916 million, are encumbered by the Company’s mortgages and loans payable. Payments on mortgages, loans payable and other obligations are generally due in monthly installments of principal and interest, or interest only.
A summary of the Company’s mortgages, loans payable and other obligations as of December 31, 2013 and 2012 is as follows: (dollars in thousands)
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Effective
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December 31,
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Property Name
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Lender
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Rate (a)
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2013
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2012
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Maturity
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51 Imclone (b)
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Wells Fargo CMBS
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8.390
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%
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-
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$
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3,878
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-
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6305 Ivy Lane (c)
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RGA Reinsurance Company
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5.525
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%
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-
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5,984
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-
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9200 Edmonston Road (d)
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Principal Commercial Funding L.L.C.
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5.534
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%
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$
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4,115
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4,305
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05/01/13
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Port Imperial South 4/5
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Wells Fargo Bank N.A.
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LIBOR+3.50
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%
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36,950
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34,889
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03/30/14
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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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9,719
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10,231
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05/01/14
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6301 Ivy Lane
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RGA Reinsurance Company
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5.520
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%
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5,447
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5,667
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07/01/14
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35 Waterview Boulevard
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Wells Fargo CMBS
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6.348
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%
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18,417
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18,746
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08/11/14
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6 Becker, 85 Livingston,
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Wells Fargo CMBS
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10.220
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%
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64,233
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63,126
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08/11/14
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75 Livingston &
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20 Waterview (e) (f)
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4 Sylvan (e)
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Wells Fargo CMBS
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10.190
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%
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14,538
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14,485
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08/11/14
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10 Independence (e)
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Wells Fargo CMBS
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12.440
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%
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16,638
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16,251
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08/11/14
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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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43,278
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42,168
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09/19/15
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4 Becker (e)
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Wells Fargo CMBS
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9.550
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%
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38,820
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38,274
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05/11/16
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5 Becker (e) (g)
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Wells Fargo CMBS
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12.830
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%
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13,092
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12,507
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05/11/16
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210 Clay (e)
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Wells Fargo CMBS
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13.420
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%
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12,767
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12,275
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05/11/16
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Various (h)
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Prudential Insurance
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6.332
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%
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147,477
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149,281
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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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29,843
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30,395
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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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225,139
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228,481
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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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233 Canoe Brook Road
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The Provident Bank
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4.375
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%
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3,877
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3,945
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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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18,792
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19,025
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02/01/19
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One River Center (i)
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Guardian Life Insurance Co.
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7.311
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%
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43,049
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43,582
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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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746,191
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$
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757,495
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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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With the sale of the property on May 31, 2013, the mortgage was satisfied by the Company. The Company incurred $0.7 million in costs for the debt satisfaction, which was included in discontinued operations: loss from early extinguishment of debt for the year ended December 31, 2013.
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(c)
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On October 1, 2013, the Company repaid the mortgage loan at par, using available cash. The original maturity date was January 1, 2014.
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(d)
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The lease with the tenant occupying 100 percent of the building expired on January 9, 2013 and the tenant continues to occupy the building on a month-to-month basis. The mortgage loan matured on May 1, 2013 and was not repaid. The Company received a notice of default from the lender on July 17, 2013. The Company has requested a modification of the loan terms and is also in discussions regarding a deed-in-lieu of foreclosure with the lender.
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(e)
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As the Company estimated that the carrying values of these properties may not be recoverable over their anticipated holding periods, the Company recorded impairment charges on these properties. See Note 3: Real Estate Transactions – Impairments on Properties Held and Used.
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(f)
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Mortgage is cross collateralized by the four properties.
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(g)
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The cash flow from this property is insufficient to cover operating costs and debt service. Consequently, the Company notified the lender and suspended debt service payments in August 2013. The Company has begun discussions with the lender regarding a modification of loan terms and began remitting available cash flow to the lender effective August 2013.
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(h)
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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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(i)
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Mortgage is collateralized by the three properties comprising One River Center.
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SCHEDULED PRINCIPAL PAYMENTS
Scheduled principal payments 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, 2013 are as follows: (dollars in thousands)
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Scheduled
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Principal
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Amortization
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Maturities
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Total
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Period
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($000’s)
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($000’s)
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($000’s)
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2014
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$
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10,163
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$
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370,596
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$
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380,759
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2015
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8,551
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193,278
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201,829
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2016
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8,389
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269,273
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277,662
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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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2018
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5,996
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231,536
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237,532
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Thereafter
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198
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885,345
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885,543
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Sub-total
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39,720
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2,341,179
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2,380,899
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Adjustment for unamortized debt
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discount/premium, net, as of
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December 31, 2013
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(18,133)
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-
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(18,133)
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Totals/Weighted Average
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$
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21,587
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$
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2,341,179
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$
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2,362,766
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CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the years ended December 31, 2013, 2012 and 2011 was $123,213,000, $120,089,000 and $116,772,000, respectively. Interest capitalized by the Company for the years ended December 31, 2013, 2012 and 2011 was $12,885,000, $4,342,000 and $1,081,000, respectively (of which these amounts included $1,326,000, $235,000 and zero for the years ended December 31, 2013, 2012 and 2011, 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, 2013, the Company’s total indebtedness of $2,362,766,000 (weighted average interest rate of 5.62 percent) was comprised of $80,228,000 of variable rate mortgage debt (weighted average rate of 2.74 percent) and fixed rate debt and other obligations of $2,282,538,000 (weighted average rate of 5.72 percent).
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).
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