Quarterly report pursuant to Section 13 or 15(d)

MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS

v3.22.2.2
MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS 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 September 30, 2022, 22 of the Company’s properties, with a total carrying value of approximately $3.6 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. The Company was in compliance with its debt covenants under its mortgages and loans payable as of September 30, 2022, except as otherwise disclosed.
A summary of the Company’s mortgages, loans payable and other obligations as of September 30, 2022 and December 31, 2021 is as follows (dollars in thousands):
Property/Project Name Lender  
Effective
Rate (a)
  September 30,
2022		   December 31,
2021		   Maturity
111 River St. (b) Athene Annuity and Life Company   3.90  % $ —  $ 150,000  — 
Port Imperial 4/5 Hotel (c) Fifth Third Bank LIBOR+ 3.40  % 89,000  89,000  04/01/23
Portside at Pier One CBRE Capital Markets/FreddieMac   3.57  % 58,998  58,998  08/01/23
Signature Place Nationwide Life Insurance Company   3.74  % 43,000  43,000  08/01/24
Liberty Towers American General Life Insurance Company   3.37  % 265,000  265,000  10/01/24
Haus25 (d) QuadReal Finance LIBOR+ 2.70  % 297,324  255,453  12/01/24
Portside 5/6 (e) New York Life Insurance Company   4.56  % 97,000  97,000  03/10/26
BLVD 425 New York Life Insurance Company   4.17  % 131,000  131,000  08/10/26
BLVD 401 New York Life Insurance Company   4.29  % 117,000  117,000  08/10/26
101 Hudson (f) Wells Fargo CMBS   3.20  % 250,000  250,000  10/11/26
The Upton (g) Bank of New York Mellon LIBOR+ 1.58  % 75,000  75,000  10/27/26
145 Front at City Square MUFG Union Bank LIBOR+ 1.84  % 63,000  63,000  12/10/26
Riverhouse 9 at Port Imperial (h) JP Morgan Chase Bank SOFR+ 1.41  % 110,000  87,175  06/01/27
Quarry Place at Tuckahoe Natixis Real Estate Capital LLC   4.48  % 41,000  41,000  08/05/27
BLVD 475 N/S The Northwestern Mutual Life Insurance Co.   2.91  % 165,000  165,000  11/10/27
Riverhouse 11 at Port Imperial The Northwestern Mutual Life Insurance Co.   4.52  % 100,000  100,000  01/10/29
Soho Lofts (i) New York Community Bank   3.77  % 160,000  160,000  07/01/29
Port Imperial South 4/5 Garage American General Life & A/G PC   4.85  % 32,293  32,664  12/01/29
Emery at Overlook Ridge New York Community Bank   3.21  % 72,000  72,000  01/01/31
Principal balance outstanding   2,166,615  2,252,290   
Unamortized deferred financing costs   (8,909) (11,220)  
     
Total mortgages, loans payable and other obligations, net   $ 2,157,706  $ 2,241,070   
(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)In January 2022, the Company repaid this mortgage loan upon disposition of the property which was collateral against the mortgage loan. This mortgage loan did not permit early pre-payment. As a result of the disposal of the property, the Company incurred costs of approximately $6.3 million at closing, which was expensed as loss from extinguishment of debt in the first quarter of 2022. See Note 3-Recent Transactions.
(c)In May 2021, the Company executed an agreement extending its maturity date to April 2023, with a six month extension option. The Company repaid $5 million of the outstanding principal and has guaranteed $14.5 million of the outstanding principal, subject to certain conditions. The loan requires a debt service coverage charge test (“DSCR Test”), with which the Company was not in compliance for the quarter ended September 30, 2022. Therefore, the Company was required to deposit three months of interest amounting to $0.9 million into an escrow account and sweep all excess property level cash flows into such escrow account until two consecutive periods have passed where the Company is in compliance with the DSCR Test. The Company does not believe this will have a material impact on its results of operations or financial condition.
(d)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, a one year extension option with a fee of 25 basis points.
(e)The Company has guaranteed 10 percent of the outstanding principal, subject to certain conditions.
(f)In October 2022, this loan was assumed by the purchaser of the property encumbered by the loan.
(g)On October 27, 2021, the Company obtained a $75 million mortgage loan maturing in October 2026 and repaid the existing construction loan. The Company entered into an interest-rate cap agreement for the mortgage loan.
(h)The construction loan had a maximum borrowing capacity of $92 million. On June 21, 2022, the Company obtained a $110 million mortgage loan maturing in June 2027 from a different lender and repaid the existing construction loan. The Company entered into an interest-rate cap agreement for the mortgage loan.
(i)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.
CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the nine months ended September 30, 2022 and 2021 was $59.0 million and $66.8 million, respectively. Interest capitalized by the Company for the nine months ended September 30, 2022 and 2021 was $12.2 million and $23.6 million, respectively.
SUMMARY OF INDEBTEDNESS
(dollars in thousands) September 30,
2022		 December 31,
2021
  Balance
Weighted Average
Interest Rate (a)
Balance
Weighted Average
Interest Rate (a)
Fixed Rate & Hedged Debt (a) $ 1,710,512  3.69  % $ 1,675,353  3.71  %
Revolving Credit Facility & Other Variable Rate Debt 556,194  5.42  % 713,717  3.32  %
Totals/Weighted Average: $ 2,266,706  4.12  % $ 2,389,070  3.60  %
(a) Includes debt with interest rate caps outstanding with a notional amount of $185 million.