XML 36 R15.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Mortgage Notes Payable | 12 Months Ended
--- | ---
Dec. 31, 2016
Notes Payable [Abstract] |
Mortgage Notes Payable | Mortgage Notes Payable ESS does not have any indebtedness as all debt is incurred by the Operating Partnership. Mortgage notes payable consist of the following as of December 31, 2016 and 2015 ($ in thousands):
| 2016 |  | 2015
Fixed rate mortgage notes payable | $ | 1,911,699 |  |  | $ | 1,925,985 |
Variable rate mortgage notes payable (1) | 279,782 |  |  | 289,092 |
Total mortgage notes payable (2) | $ | 2,191,481 |  |  | $ | 2,215,077 |
Number of properties securing mortgage notes | 61 |  |  | 64 |
Remaining terms | 1-30 years |  |  | 1-31 years |
Weighted average interest rate | 4.3 | % |  | 4.4 | %
The aggregate scheduled principal payments of mortgage notes payable at December 31, 2016 are as follows ($ in thousands):
2017 | $ | 82,796 |
2018 | 301,575 |
2019 | 576,954 |
2020 | 693,868 |
2021 | 51,584 |
Thereafter | 441,313 |
| $ | 2,148,090 |
(1) | Variable rate mortgage notes payable, including $257.3 million in bonds that have been converted to variable rate through total return swap contracts, consists of multi-family housing mortgage revenue bonds secured by deeds of trust on rental properties and guaranteed by collateral pledge agreements, payable monthly at a variable rate as defined in the Loan Agreement (approximately 1.2% at December 2016 and 1.2% at December 2015) plus credit enhancement and underwriting fees ranging from approximately 1.0% to 1.3%. Among the terms imposed on the properties, which are security for the bonds, is a requirement that 20% of the apartment homes are subject to tenant income criteria. Principal balances are due in full at various maturity dates from May 2025 through December 2046. Of these bonds $20.7 million are subject to various interest rate cap agreements that limit the maximum interest rate to such bonds.
(2) | Includes total unamortized premium of $50.8 million and $64.8 million and reduced by unamortized debt issuance costs of $7.4 million and $8.0 million as of December 31, 2016 and 2015, respectively.
For the Company’s mortgage notes payable as of December 31, 2016, monthly interest expense and principal amortization, excluding balloon payments, totaled approximately $7.4 million and $2.5 million, respectively. Second deeds of trust accounted for zero of the $2.2 billion in mortgage notes payable as of December 31, 2016. Repayment of debt before the scheduled maturity date could result in prepayment penalties. The prepayment penalty on the majority of the Company’s mortgage notes payable are computed by the greater of (a) 1% of the amount of the principal being prepaid or (b) the present value of the mortgage note payable which is calculated by multiplying the principal being prepaid by the difference between the interest rate of the mortgage note and the stated yield rate on a specified U.S. treasury security as defined in the mortgage note agreement.

X
- Definition The entire disclosure for mortgage notes payable. + References No definition available. + Details
Name: | us-gaap_MortgageNotesPayableDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_NotesPayableAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration