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Indebtedness | 9 Months Ended
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Sep. 30, 2014
Debt Disclosure [Abstract] |
Indebtedness | 4. Indebtedness The following table discloses certain information regarding our indebtedness:
| Outstanding Balance at |  | Interest Rate at September 30, 2014 |  | Effective Interest Rate at Issuance |  | Maturity Date
| September 30, 2014 |  | December 31, 2013 |
Mortgage Loans Payable, Net | $ | 602,927 |  |  | $ | 677,890 |  |  | 4.03% – 8.26% |  | 4.03% – 8.26% |  | February 2016 – September 2022
Unamortized Premiums | (96 | ) |  | (115 | ) |  |  |  |  |  |
Mortgage Loans Payable, Gross | $ | 602,831 |  |  | $ | 677,775 |  |  |  |  |  |  |
Senior Unsecured Notes, Net |  |  |  |  |  |  |  |  |
2016 Notes | $ | 159,607 |  |  | $ | 159,566 |  |  | 5.750% |  | 5.91% |  | 1/15/2016
2017 Notes | 54,964 |  |  | 54,960 |  |  | 7.500% |  | 7.52% |  | 12/1/2017
2027 Notes | 6,066 |  |  | 6,066 |  |  | 7.150% |  | 7.11% |  | 5/15/2027
2028 Notes | 31,884 |  |  | 31,883 |  |  | 7.600% |  | 8.13% |  | 7/15/2028
2032 Notes | 10,517 |  |  | 10,514 |  |  | 7.750% |  | 7.87% |  | 4/15/2032
2014 Notes | — |  |  | 81,149 |  |  | N/A |  | N/A |  | 6/1/2014
2017 II Notes | 101,799 |  |  | 101,778 |  |  | 5.950% |  | 6.37% |  | 5/15/2017
Subtotal | $ | 364,837 |  |  | $ | 445,916 |  |  |  |  |  |  |
Unamortized Discounts | 265 |  |  | 980 |  |  |  |  |  |  |
Senior Unsecured Notes, Gross | $ | 365,102 |  |  | $ | 446,896 |  |  |  |  |  |  |
Unsecured Term Loan* | $ | 200,000 |  |  | N/A |  |  | 1.905% |  | 1.905% |  | 1/29/2021
Unsecured Credit Facility** | $ | 176,000 |  |  | $ | 173,000 |  |  | 1.656% |  | 1.656% |  | 9/29/2017
* We entered into interest rate protection agreements, with an aggregate notional value of $200,000, to effectively convert the variable rate to a fixed rate. See Note 10. ** The maturity date may be extended an additional year at our election, subject to certain restrictions. Mortgage Loans Payable, Net During the nine months ended September 30, 2014, we paid off and retired prior to maturity mortgage loans payable in the amount of $65,558. In connection with these prepayments, we recognized $655 as a loss from retirement of debt for the nine months ended September 30, 2014. As of September 30, 2014, mortgage loans payable are collateralized, and in some instances cross-collateralized, by industrial properties with a net carrying value of $744,826. We believe the Operating Partnership and the Company were in compliance with all covenants relating to mortgage loans payable as of September 30, 2014. Senior Unsecured Notes, Net During the nine months ended September 30, 2014, we paid off and retired our 2014 Notes, at maturity, in the amount of $81,794. Unsecured Term Loan On January 29, 2014, we entered into a seven-year, $200,000 unsecured loan (the "Unsecured Term Loan") with a syndicate of financial institutions. The Unsecured Term Loan requires interest only payments and bears interest at a variable rate based on LIBOR, as defined in the loan agreement, plus a specified spread based on our leverage ratio or credit ratings. Indebtedness The following is a schedule of the stated maturities and scheduled principal payments of our indebtedness, exclusive of premiums and discounts, for the next five years as of September 30, 2014 and thereafter:
| Amount
Remainder of 2014 | $ | 2,935 |
2015 | 12,158 |
2016 | 251,870 |
2017 | 344,723 |
2018 | 168,341 |
Thereafter | 563,906 |
Total | $ | 1,343,933 |
Our unsecured revolving credit facility (the "Unsecured Credit Facility"), Unsecured Term Loan and the indentures governing our senior unsecured notes contain certain financial covenants, including limitations on incurrence of debt and debt service coverage. Under the Unsecured Credit Facility and Unsecured Term Loan, an event of default can also occur if the lenders, in their good faith judgment, determine that a material adverse change has occurred which could prevent timely repayment or materially impair our ability to perform our obligations under the loan agreements. We believe that the Operating Partnership and the Company were in compliance with all covenants relating to the Unsecured Credit Facility, Unsecured Term Loan and indentures governing our senior unsecured notes as of September 30, 2014. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our lenders in a manner that could impose and cause us to incur material costs. Fair Value At September 30, 2014 and December 31, 2013, the fair value of our indebtedness was as follows:
| September 30, 2014 |  | December 31, 2013
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Mortgage Loans Payable, Net | $ | 602,927 |  |  | $ | 642,936 |  |  | $ | 677,890 |  |  | $ | 684,914 |
Senior Unsecured Debt, Net | 364,837 |  |  | 398,655 |  |  | 445,916 |  |  | 482,781 |
Unsecured Term Loan | 200,000 |  |  | 200,597 |  |  | N/A |  |  | N/A |
Unsecured Credit Facility | 176,000 |  |  | 176,258 |  |  | 173,000 |  |  | 173,000 |
Total | $ | 1,343,764 |  |  | $ | 1,418,446 |  |  | $ | 1,296,806 |  |  | $ | 1,340,695 |
The fair values of our mortgage loans payable were determined by discounting the future cash flows using the current rates at which similar loans would be made based upon similar remaining maturities. The current market rates we utilized were internally estimated. The fair value of the senior unsecured debt was determined by using rates, as advised by our bankers in certain cases, that are based upon recent trades within the same series of the senior unsecured debt, recent trades for senior unsecured debt with comparable maturities, recent trades for fixed rate unsecured debt from companies with profiles similar to ours, as well as overall economic conditions. The fair value of the Unsecured Credit Facility and Unsecured Term Loan was determined by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term, assuming no repayment until maturity. We have concluded that our determination of fair value for each of our mortgage loans payable, senior unsecured debt, Unsecured Term Loan and Unsecured Credit Facility was primarily based upon Level 3 inputs.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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