9.   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 June 30, 2012, 31 of the Company’s properties, with a total book value of approximately $919.1 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 June 30, 2012 and December 31, 2011 is as follows: (dollars in thousands)

Property Name	Lender		Effective Rate (a)				June 30, 2012		December 31, 2011		Maturity
2200 Renaissance Boulevard (b)	Wachovia CMBS		5.888	%			-	$	16,171		-
One Grande Commons (c)	Capital One Bank		LIBOR+2.00	%		$	11,000		11,000		12/31/12
Soundview Plaza	Morgan Stanley Mortgage Capital		6.015	%			15,240		15,531		01/01/13
9200 Edmonston Road	Principal Commercial Funding L.L.C.		5.534	%			4,393		4,479		05/01/13
6305 Ivy Lane	John Hancock Life Insurance Co.		5.525	%			6,125		6,245		01/01/14
395 West Passaic	State Farm Life Insurance Co.		6.004	%			10,526		10,781		05/01/14
6301 Ivy Lane	John Hancock Life Insurance Co.		5.520	%			5,793		5,899		07/01/14
35 Waterview Boulevard	Wachovia CMBS		6.348	%			18,901		19,051		08/11/14
6 Becker, 85 Livingston,    75 Livingston &    20 Waterview	Wachovia CMBS		10.220	%			62,614		62,127		08/11/14
4 Sylvan	Wachovia CMBS		10.190	%			14,461		14,438		08/11/14
10 Independence	Wachovia CMBS		12.440	%			16,074		15,908		08/11/14
4 Becker	Wachovia CMBS		9.550	%			38,016		37,769		05/11/16
5 Becker	Wachovia CMBS		12.830	%			12,274		12,056		05/11/16
210 Clay	Wachovia CMBS		13.420	%			12,053		11,844		05/11/16
51 Imclone	Wachovia CMBS		8.390	%			3,882		3,886		05/11/16
Various (d)	Prudential Insurance		6.332	%			150,000		150,000		01/15/17
23 Main Street	JPMorgan CMBS		5.587	%			30,725		31,002		09/01/18
Harborside Plaza 5	The Northwestern Mutual Life Insurance Co. & New York Life Insurance Co.		6.842	%			230,068		231,603		11/01/18
100 Walnut Avenue	Guardian Life Insurance Co.		7.311	%			19,135		19,241		02/01/19
One River Center (e)	Guardian Life Insurance Co.		7.311	%			43,835		44,079		02/01/19
581 Main Street (f)	Valley National Bank		6.935	%	(g)		16,187		16,338		07/01/34
Total mortgages, loans payable and other obligations						$	721,302	$	739,448

 

(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 March 28, 2012, the Company transferred the deed for 2200 Renaissance Boulevard to the lender in satisfaction of its obligations.  See Note 6: Discontinued Operations.

(c)                  The mortgage loan has two one-year extension options subject to certain conditions and the payment of a fee.

(d)                 Mortgage is collateralized by seven properties.  The Operating Partnership has agreed, subject to certain conditions, to guarantee repayment of a portion of the loan.

(e)                  Mortgage is collateralized by the three properties comprising One River Center.

(f)                  The Operating Partnership has agreed, subject to certain conditions, to guarantee repayment of a portion of the loan.

(g)                  The coupon interest rate will be reset at the end of year 10 (2019) and year 20 (2029) at 225 basis points over the 10-year treasury yield 45 days prior to the reset dates with a minimum rate of 6.875 percent.

 

 

CASH PAID FOR INTEREST AND INTEREST CAPITALIZED

Cash paid for interest for the six months ended June 30, 2012 and 2011 was $61,144,000 and $58,664,000, respectively.  Interest capitalized by the Company for the six months ended June 30, 2012 and 2011 was $536,000 and $753,000, respectively.

 

SUMMARY OF INDEBTEDNESS

As of June 30, 2012, the Company’s total indebtedness of $1,929,596,000 (weighted average interest rate of 6.32 percent) was comprised of $21,000,000 of revolving credit facility borrowings and other variable rate mortgage debt (weighted average rate of 1.89 percent) and fixed rate debt and other obligations of $1,908,596,000 (weighted average rate of 6.37 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).