Quarterly report pursuant to Section 13 or 15(d)

Mortgages, Loans Payable And Other Obligations

v2.4.0.8
Mortgages, Loans Payable And Other Obligations
9 Months Ended
Sep. 30, 2013
Debt Disclosure [Abstract]  
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, 2013,  30 of the Company’s properties, with a total book value of approximately $989 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 September 30, 2013 and December 31, 2012 is as follows: (dollars in thousands) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective

 

 

 

September 30,

 

December 31,

 

 

Property Name

Lender

 

Rate (a)

 

 

 

2013 

 

2012 

 

Maturity

51 Imclone (b)   

Wells Fargo CMBS

 

8.390 

%

 

 

 -

$

3,878 

 

-

9200 Edmonston Road (c)   

Principal Commercial Funding L.L.C.

 

5.534 

%

 

$

4,158 

 

4,305 

 

05/01/13

6305 Ivy Lane (d)

RGA Reinsurance Company

 

5.525 

%

 

 

5,811 

 

5,984 

 

10/01/13

Port Imperial South 4/5

Wells Fargo Bank N.A.

LIBOR+3.50

%

 

 

36,355 

 

34,889 

 

12/31/13

395 West Passaic

State Farm Life Insurance Co.

 

6.004 

%

 

 

9,858 

 

10,231 

 

05/01/14

6301 Ivy Lane

RGA Reinsurance Company

 

5.520 

%

 

 

5,514 

 

5,667 

 

07/01/14

35 Waterview Boulevard

Wells Fargo CMBS

 

6.348 

%

 

 

18,502 

 

18,746 

 

08/11/14

6 Becker, 85 Livingston,

Wells Fargo CMBS

 

10.220 

%

 

 

63,945 

 

63,126 

 

08/11/14

75 Livingston &

 

 

 

 

 

 

 

 

 

 

 

20 Waterview (e)

 

 

 

 

 

 

 

 

 

 

 

4 Sylvan

Wells Fargo CMBS

 

10.190 

%

 

 

14,524 

 

14,485 

 

08/11/14

10 Independence

Wells Fargo CMBS

 

12.440 

%

 

 

16,536 

 

16,251 

 

08/11/14

Port Imperial South

Wells Fargo Bank N.A.

LIBOR+1.75

%

 

 

43,045 

 

42,168 

 

09/19/15

4 Becker

Wells Fargo CMBS

 

9.550 

%

 

 

38,681 

 

38,274 

 

05/11/16

5 Becker (f)

Wells Fargo CMBS

 

12.830 

%

 

 

12,912 

 

12,507 

 

05/11/16

210 Clay

Wells Fargo CMBS

 

13.420 

%

 

 

12,638 

 

12,275 

 

05/11/16

Various (g)   

Prudential Insurance

 

6.332 

%

 

 

147,939 

 

149,281 

 

01/15/17

23 Main Street

JPMorgan CMBS

 

5.587 

%

 

 

29,997 

 

30,395 

 

09/01/18

Harborside Plaza 5

The Northwestern Mutual Life

 

6.842 

%

 

 

225,996 

 

228,481 

 

11/01/18

 

Insurance Co. & New York Life

 

 

 

 

 

 

 

 

 

 

 

Insurance Co.

 

 

 

 

 

 

 

 

 

 

233 Canoe Brook Road

The Provident Bank

 

4.375 

%

 

 

3,895 

 

3,945 

 

02/01/19

100 Walnut Avenue

Guardian Life Insurance Co.

 

7.311 

%

 

 

18,852 

 

19,025 

 

02/01/19

One River Center (h)

Guardian Life Insurance Co.

 

7.311 

%

 

 

43,186 

 

43,582 

 

02/01/19

 

 

 

 

 

 

 

 

 

 

 

 

Total mortgages, loans payable and other obligations

 

 

 

 

$

752,344 

$

757,495 

 

 

(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)

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 nine months ended September 30, 2013. 

(c)

The lease with the tenant occupying 100 percent of the building expired on May 1, 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.  

(d)

On October 1, 2013, the Company repaid the mortgage loan at par, using available cash.  The original maturity date was January 1, 2014.

(e)

Mortgage is cross collateralized by the four properties.

(f)

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.  The Company recorded an impairment charge on this asset along with eight other office properties as of September 30, 2013.  See Note 3: Real Estate Transactions – Impairments.

(g)

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

(h)

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

 

CASH PAID FOR INTEREST AND INTEREST CAPITALIZED

Cash paid for interest for the nine months ended September 30, 2013 and 2012 was $97,284,000 and $98,191,000, respectively.  Interest capitalized by the Company for the nine months ended September 30, 2013 and 2012 was $10,262,000 and $1,427,000, respectively.

 

SUMMARY OF INDEBTEDNESS

As of September 30, 2013, the Company’s total indebtedness of $2,368,681,000 (weighted average interest rate of 5.62 percent) was comprised of $79,400,000 of variable rate mortgage debt (weighted average rate of 2.74 percent) and fixed rate debt and other obligations of $2,289,281,000 (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).