Quarterly report pursuant to Section 13 or 15(d)

MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS

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MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS
9 Months Ended
Sep. 30, 2023
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. As of September 30, 2023, 17 of the Company’s properties, with a total carrying value of approximately $2.6 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, 2023.
A summary of the Company’s mortgages, loans payable and other obligations as of September 30, 2023 and December 31, 2022 is as follows (dollars in thousands):
Property/Project Name Lender  
Effective
Rate (a)
  September 30,
2023
  December 31,
2022
  Maturity
Port Imperial 4/5 Hotel (b) Fifth Third Bank N/A $ —  $ 84,000  — 
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
Portside 5/6 (c) 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
Portside at Pier One (d) KKR SOFR+ 2.75  % 56,500  58,998  09/07/26
The Upton (e) Bank of New York Mellon SOFR+ 1.58  % 75,000  75,000  10/27/26
145 Front at City Square (f) MUFG Union Bank SOFR+ 1.84  % 63,000  63,000  12/10/26
Riverhouse 9 at Port Imperial (g) JP Morgan SOFR+ 1.41  % 110,000  110,000  06/21/27
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
Haus25 (h) Freddie Mac 6.04  % 343,061  297,324  09/01/28
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  % 159,513  160,000  07/01/29
Port Imperial South 4/5 Garage American General Life & A/G PC   4.85  % 31,778  32,166  12/01/29
Emery at Overlook Ridge (j) New York Community Bank   3.21  % 72,000  72,000  01/01/31
Principal balance outstanding   1,869,852  1,911,488   
Unamortized deferred financing costs   (16,053) (7,511)  
     
Total mortgages, loans payable and other obligations, net   $ 1,853,799  $ 1,903,977   
(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)The loan was paid off on disposition of the hotels on February 10, 2023.
(c)The Company has guaranteed 10 percent of the outstanding principal, subject to certain conditions.
(d)On August 10, 2023, the Company refinanced the Freddie Mac fixed rate loan. Additionally, a 3-year cap at a strike rate of 3.5% was placed.
(e)On October 27, 2021, the Company obtained a $75 million mortgage loan and entered into an interest-rate cap agreement for the mortgage loan.
(f)On September 30, 2023 the Company placed a 9-month SOFR cap at a strike rate of 4.0%.
(g)On June 21, 2022, the Company obtained a $110 million mortgage loan and entered into an interest-rate cap agreement for the mortgage loan.
(h)On August 15, 2023, the $297 million QuadReal Finance backed construction loan was fully repaid and the existing cap was terminated through refinancing activity.
(i)Effective rate reflects the fixed rate period, which ends in July 1, 2024. After that period ends, the Company must make a one-time election of how to compute the interest rate for this loan: (a) the floating-rate option, the sum of the highest prime rate as published in the New York Times on each applicable Rate Change Date plus 2.75% annually or (b) the fixed-rate option, the sum of the Five Year Fixed Rate Advance of the Federal Home Loan Bank of New York in effects as of the first business day of the month which is three months prior to the Rate Change Date plus 3.00% annually.
(j)Effective rate reflects the fixed rate period, which ends on January 1, 2026. After that period ends, the Company must make a one-time election of how to compute the interest rate for this loan: (a) the floating-rate option, the sum of the highest prime rate as published in the New York Times on each applicable Rate Change Date plus 2.75% annually or (b) the fixed-rate option, the sum of the Five Year Fixed Rate Advance of the Federal Home Loan Bank of New York in effects as of the first business day of the month which is three months prior to the Rate Change Date plus 3.00% annually.
Cash Paid for Interest and Interest Capitalized
Cash paid for interest for the nine months ended September 30, 2023 and 2022 was $61.6 million and $59.0 million (of which $1.1 million and $9.7 million pertained to properties classified as discontinued operations), respectively. Interest capitalized by the Company for the nine months ended September 30, 2023 and 2022 was zero and $12.2 million, respectively.
Summary of Indebtedness
(dollars in thousands) September 30,
2023
December 31,
2022
  Balance Weighted Average
Interest Rate
Balance
Weighted Average
Interest Rate
Fixed Rate & Hedged Debt (a) $ 1,853,799  4.34  % $ 1,757,308  4.27  %
Revolving Credit Facility, Term Loan and Other Variable Rate Debt 59,067  8.92  % 146,669  6.86  %
Totals/Weighted Average: $ 1,912,866  4.49  % $ 1,903,977  4.47  %
(a) As of September 30, 2023 and December 31, 2022, includes debt with interest rate caps outstanding with a notional amount of $304.5 million and $485 million, respectively.