| 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 September 30, 2014, 30 of the Company’s properties, with a total book value of approximately $982 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 as of September 30, 2014.
A summary of the Company’s mortgages, loans payable and other obligations as of September 30, 2014 and December 31, 2013 is as follows: (dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
Property Name
|
Lender
|
|
Rate (a)
|
|
|
|
2014
|
|
|
2013
|
|
Maturity
|
|
|
6301 Ivy Lane (b)
|
RGA Reinsurance Company
|
|
5.520
|
%
|
|
$
|
-
|
|
$
|
5,447
|
|
-
|
|
|
395 West Passaic (c)
|
State Farm Life Insurance Co.
|
|
6.004
|
%
|
|
|
-
|
|
|
9,719
|
|
-
|
|
|
35 Waterview Boulevard (d)
|
Wells Fargo CMBS
|
|
6.348
|
%
|
|
|
-
|
|
|
18,417
|
|
-
|
|
|
233 Canoe Brook Road (e)
|
The Provident Bank
|
|
4.375
|
%
|
|
|
-
|
|
|
3,877
|
|
-
|
|
|
6 Becker, 85 Livingston,
|
Wells Fargo CMBS
|
|
10.220
|
%
|
|
|
65,035
|
|
|
64,233
|
|
08/11/14
|
(o)
|
|
75 Livingston &
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20 Waterview (f)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 Sylvan
|
Wells Fargo CMBS
|
|
10.190
|
%
|
|
|
14,575
|
|
|
14,538
|
|
08/11/14
|
(o)
|
|
10 Independence (g)
|
Wells Fargo CMBS
|
|
12.440
|
%
|
|
|
16,924
|
|
|
16,638
|
|
08/11/14
|
(g)
|
|
Port Imperial South 4/5
|
Wells Fargo Bank N.A.
|
LIBOR+3.50
|
%
|
|
|
36,950
|
|
|
36,950
|
|
10/31/14
|
(q)
|
|
Overlook - Site IIID,IIIC, IIIA (p)
|
Wells Fargo Bank N.A.
|
LIBOR+3.50
|
%
|
|
|
17,100
|
|
|
-
|
|
03/02/15
|
|
|
Overlook - Site IIB (Quarrystone I) (p)
|
Wells Fargo Bank N.A.
|
LIBOR+2.50
|
%
|
|
|
5,748
|
|
|
-
|
|
04/14/15
|
|
|
9200 Edmonston Road (h)
|
Principal Commercial Funding L.L.C.
|
|
5.534
|
%
|
|
|
3,996
|
|
|
4,115
|
|
05/01/15
|
|
|
Port Imperial South
|
Wells Fargo Bank N.A.
|
LIBOR+1.75
|
%
|
|
|
43,910
|
|
|
43,278
|
|
09/19/15
|
|
|
4 Becker
|
Wells Fargo CMBS
|
|
9.550
|
%
|
|
|
39,268
|
|
|
38,820
|
|
05/11/16
|
|
|
5 Becker (i)
|
Wells Fargo CMBS
|
|
12.830
|
%
|
|
|
13,666
|
|
|
13,092
|
|
05/11/16
|
|
|
210 Clay
|
Wells Fargo CMBS
|
|
13.420
|
%
|
|
|
13,182
|
|
|
12,767
|
|
05/11/16
|
|
|
Curtis Center (j)
|
CCRE & PREFG
|
LIBOR+4.55
|
%
|
(m)
|
|
64,000
|
|
|
-
|
|
10/09/16
|
|
|
Various (k)
|
Prudential Insurance
|
|
6.332
|
%
|
|
|
146,048
|
|
|
147,477
|
|
01/15/17
|
|
|
150 Main St.
|
Webster Bank
|
LIBOR+2.35
|
%
|
|
|
218
|
|
|
-
|
|
03/30/17
|
|
|
23 Main Street
|
JPMorgan CMBS
|
|
5.587
|
%
|
|
|
29,373
|
|
|
29,843
|
|
09/01/18
|
|
|
Harborside Plaza 5
|
The Northwestern Mutual Life
|
|
6.842
|
%
|
|
|
222,480
|
|
|
225,139
|
|
11/01/18
|
|
|
|
Insurance Co. & New York Life
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance Co.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100 Walnut Avenue
|
Guardian Life Insurance Co.
|
|
7.311
|
%
|
|
|
18,606
|
|
|
18,792
|
|
02/01/19
|
|
|
One River Center (l)
|
Guardian Life Insurance Co.
|
|
7.311
|
%
|
|
|
42,623
|
|
|
43,049
|
|
02/01/19
|
|
|
Park Square
|
Wells Fargo Bank N.A.
|
LIBOR+1.75
|
%
|
(n)
|
|
27,500
|
|
|
-
|
|
04/10/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgages, loans payable and other obligations
|
|
|
|
|
$
|
821,202
|
|
$
|
746,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 April 1, 2014, the Company repaid the mortgage loan at par, using available cash.
|
|
(c)
|
|
On May 1, 2014, the Company repaid the mortgage loan at par, using available cash.
|
|
(d)
|
|
On May 12, 2014, the Company repaid the mortgage loan at par, using borrowings on the Company’s unsecured revolving credit facility.
|
|
(e)
|
|
On April 30, 2014, the Company repaid the mortgage loan at par, using available cash.
|
|
(f)
|
|
Mortgage is cross collateralized by the four properties.
|
|
(g)
|
|
The Company is negotiating a deed-in-lieu of foreclosure in satisfaction of this mortgage loan.
|
|
(h)
|
|
The mortgage loan originally matured on May 1, 2013. The maturity date was extended until May 1, 2015 with the same interest rate. 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.
|
|
(i)
|
|
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 deed-in-lieu of foreclosure and began remitting available cash flow to the lender effective August 2013.
|
|
(j)
|
|
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 3.45 percent at September 30, 2014 and its 50 percent interest in a $26 million mezzanine loan (with a maximum borrowing capacity of $48 million) with a current rate of 9.65 percent at September 30, 2014. 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. Both loans have LIBOR caps for the period. The loans provide for three one-year extension options. As the Curtis Center Property loans closed on September 30, 2014 with the loan proceeds received on October 1, 2014, the Company recorded the loan and a receivable on September 30, 2014. See Note 5: Deferred Charges, Goodwill and Other Assets.
|
|
(k)
|
|
Mortgage is cross collateralized by seven properties. The Operating Partnership has agreed, subject to certain conditions, to guarantee repayment of a portion of the loan.
|
|
(l)
|
|
Mortgage is collateralized by the three properties comprising One River Center.
|
|
(m)
|
|
Amortization of deferred financing costs adds 1.523 percent to the variable interest rate stated above.
|
|
(n)
|
|
Amortization of deferred financing costs adds 0.122 percent to the variable interest rate stated above.
|
(o)The Company has begun discussions with the lender regarding the past due maturity of the loans.
(p)On August 15, 2014, the Company assumed these loans as a result of its acquisition of interests which increased its ownership to 100 percent in certain previously unconsolidated joint ventures which owned developable land.
(q)The Company is pursuing permanent financing at the maturity of the construction financing in October 2014.
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the nine months ended September 30, 2014 and 2013 was $92,096,000 and $97,284,000, respectively. Interest capitalized by the Company for the nine months ended September 30, 2014 and 2013 was $10,650,000 and $10,262,000, respectively (of which these amounts included $3,284,000 and $980,000 for the nine months ended September 30, 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 September 30, 2014, the Company’s total indebtedness of $2,238,641,000 (weighted average interest rate of 5.62 percent) was comprised of $195,426,000 of variable rate mortgage debt (weighted average rate of 3.86 percent) and fixed rate debt and other obligations of $2,043,215,000 (weighted average rate of 5.78 percent).
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).
DERIVATIVE FINANCIAL INSTRUMENTS
The Company does not have any derivative instruments designated as cash flow hedges. The following table summarizes the notional and fair value of the Company’s derivative financial instruments, designated as fair value hedges, as of September 30, 2014 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional
|
|
|
Strike
|
|
|
Effective
|
|
Expiration
|
|
|
|
|
|
|
Value
|
(a)
|
|
Rate
|
|
|
Date
|
|
Date
|
|
|
Fair Value
|
|
LIBOR Cap
|
$
|
51,000
|
|
|
1.5
|
%
|
|
September 2014
|
|
October 2015
|
|
$
|
4
|
|
LIBOR Cap
|
|
24,000
|
|
|
1.5
|
%
|
|
September 2014
|
|
October 2015
|
|
|
2
|
|
LIBOR Cap
|
|
51,000
|
|
|
1.75
|
%
|
|
October 2015
|
|
October 2016
|
|
|
115
|
|
LIBOR Cap
|
|
24,000
|
|
|
1.75
|
%
|
|
October 2015
|
|
October 2016
|
|
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks.
|
The Company includes these derivative financial instruments in deferred charges, goodwill and other assets.
|