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Mortgage Notes Payable: | 12 Months Ended
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Dec. 31, 2014
Debt Disclosure [Abstract] |
Mortgage Notes Payable: | Mortgage Notes Payable: Mortgage notes payable at December 31, 2014 and 2013 consist of the following:
|  | Carrying Amount of Mortgage Notes(1) |  |  |  |  |  |
|  | 2014 |  | 2013 |  | Effective Interest Rate(2) |  | Monthly Debt Service(3) |  | Maturity Date(4)
Property Pledged as Collateral |  | Related Party |  | Other |  | Related Party |  | Other |
Arrowhead Towne Center |  | $ | — |  |  | $ | 228,703 |  |  | $ | — |  |  | $ | 236,028 |  |  | 2.76 | % |  | $ | 1,131 |  |  | 2018 |
Camelback Colonnade(5) |  | — |  |  | — |  |  | — |  |  | 49,120 |  |  | — |  |  | — |  |  | — |
Chandler Fashion Center(6) |  | — |  |  | 200,000 |  |  | — |  |  | 200,000 |  |  | 3.77 | % |  | 625 |  |  | 2019 |
Danbury Fair Mall |  | 114,265 |  |  | 114,264 |  |  | 117,120 |  |  | 117,120 |  |  | 5.53 | % |  | 1,538 |  |  | 2020 |
Deptford Mall |  | — |  |  | 197,815 |  |  | — |  |  | 201,622 |  |  | 3.76 | % |  | 947 |  |  | 2023 |
Deptford Mall |  | — |  |  | 14,285 |  |  | — |  |  | 14,551 |  |  | 6.46 | % |  | 101 |  |  | 2016 |
Eastland Mall |  | — |  |  | 168,000 |  |  | — |  |  | 168,000 |  |  | 5.79 | % |  | 811 |  |  | 2016 |
Fashion Outlets of Chicago(7) |  | — |  |  | 119,329 |  |  | — |  |  | 91,383 |  |  | 2.97 | % |  | 259 |  |  | 2017 |
Fashion Outlets of Niagara Falls USA |  | — |  |  | 121,376 |  |  | — |  |  | 124,030 |  |  | 4.89 | % |  | 727 |  |  | 2020 |
Flagstaff Mall |  | — |  |  | 37,000 |  |  | — |  |  | 37,000 |  |  | 5.03 | % |  | 151 |  |  | 2015 |
FlatIron Crossing |  | — |  |  | 261,494 |  |  | — |  |  | 268,000 |  |  | 3.90 | % |  | 1,393 |  |  | 2021 |
Freehold Raceway Mall(6) |  | — |  |  | 229,244 |  |  | — |  |  | 232,900 |  |  | 4.20 | % |  | 1,132 |  |  | 2018 |
Fresno Fashion Fair(8) |  | — |  |  | — |  |  | 79,391 |  |  | 79,390 |  |  | — |  |  | — |  |  | — |
Great Northern Mall(9) |  | — |  |  | 34,494 |  |  | — |  |  | 35,484 |  |  | 6.54 | % |  | 234 |  |  | 2015 |
Green Acres Mall |  | — |  |  | 313,514 |  |  | — |  |  | 319,850 |  |  | 3.61 | % |  | 1,447 |  |  | 2021 |
Kings Plaza Shopping Center |  | — |  |  | 480,761 |  |  | — |  |  | 490,548 |  |  | 3.67 | % |  | 2,229 |  |  | 2019 |
Lakewood Center(10) |  | — |  |  | 253,708 |  |  | — |  |  | — |  |  | 1.80 | % |  | 1,127 |  |  | 2015 |
Los Cerritos Center(11) |  | 103,274 |  |  | 103,274 |  |  | — |  |  | — |  |  | 1.65 | % |  | 1,009 |  |  | 2018 |
Northgate Mall(12) |  | — |  |  | 64,000 |  |  | — |  |  | 64,000 |  |  | 3.05 | % |  | 128 |  |  | 2017 |
Oaks, The |  | — |  |  | 210,197 |  |  | — |  |  | 214,239 |  |  | 4.14 | % |  | 1,064 |  |  | 2022 |
Pacific View |  | — |  |  | 133,200 |  |  | — |  |  | 135,835 |  |  | 4.08 | % |  | 668 |  |  | 2022 |
Queens Center(13) |  | — |  |  | 600,000 |  |  | — |  |  | — |  |  | 3.49 | % |  | 1,744 |  |  | 2025 |
Santa Monica Place |  | — |  |  | 230,344 |  |  | — |  |  | 235,445 |  |  | 2.99 | % |  | 1,004 |  |  | 2018 |
SanTan Village Regional Center |  | — |  |  | 133,807 |  |  | — |  |  | 136,629 |  |  | 3.14 | % |  | 589 |  |  | 2019 |
South Plains Mall(14) |  | — |  |  | — |  |  | — |  |  | 99,833 |  |  | — |  |  | — |  |  | — |
Stonewood Center(15) |  | — |  |  | 111,297 |  |  | — |  |  | — |  |  | 1.80 | % |  | 640 |  |  | 2017 |
Superstition Springs Center(16) |  | — |  |  | 68,079 |  |  | — |  |  | 68,395 |  |  | 1.98 | % |  | 138 |  |  | 2016 |
Towne Mall |  | — |  |  | 22,607 |  |  | — |  |  | 22,996 |  |  | 4.48 | % |  | 117 |  |  | 2022 |
Tucson La Encantada |  | 71,500 |  |  | — |  |  | 72,870 |  |  | — |  |  | 4.23 | % |  | 368 |  |  | 2022 |
Valley Mall |  | — |  |  | 41,368 |  |  | — |  |  | 42,155 |  |  | 5.85 | % |  | 280 |  |  | 2016 |
Valley River Center |  | — |  |  | 120,000 |  |  | — |  |  | 120,000 |  |  | 5.59 | % |  | 558 |  |  | 2016 |
Victor Valley, Mall of(17) |  | — |  |  | 115,000 |  |  | — |  |  | 90,000 |  |  | 4.00 | % |  | 380 |  |  | 2024 |
Vintage Faire Mall(18) |  | — |  |  | — |  |  | — |  |  | 99,083 |  |  | — |  |  | — |  |  | — |
Washington Square(19) |  | — |  |  | 238,696 |  |  | — |  |  | — |  |  | 1.65 | % |  | 1,499 |  |  | 2016 |
Westside Pavilion |  | — |  |  | 149,626 |  |  | — |  |  | 152,173 |  |  | 4.49 | % |  | 783 |  |  | 2022 |
|  | $ | 289,039 |  |  | $ | 5,115,482 |  |  | $ | 269,381 |  |  | $ | 4,145,809 |  |  |  |  |  |  |  |  |  |
(1) | The mortgage notes payable balances include the unamortized debt premiums (discounts). Debt premiums (discounts) represent the excess (deficiency) of the fair value of debt over (under) the principal value of debt assumed in various acquisitions and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method.
The debt premiums (discounts) as of December 31, 2014 and 2013 consist of the following:
Property Pledged as Collateral |  | 2014 |  | 2013
Arrowhead Towne Center |  | $ | 11,568 |  |  | $ | 14,642 |
Camelback Colonnade |  | — |  |  | 2,120 |
Deptford Mall |  | (8 | ) |  | (14 | )
Fashion Outlets of Niagara Falls USA |  | 5,414 |  |  | 6,342 |
Lakewood Center |  | 3,708 |  |  | — |
Los Cerritos Center |  | 17,965 |  |  | — |
Stonewood Center |  | 7,980 |  |  | — |
Superstition Springs Center |  | 579 |  |  | 895 |
Valley Mall |  | (132 | ) |  | (219 | )
Washington Square |  | 9,847 |  |  | — |
|  | $ | 56,921 |  |  | $ | 23,766 |
(2) | The interest rate disclosed represents the effective interest rate, including the debt premiums (discounts) and deferred finance costs.
(3) | The monthly debt service represents the payment of principal and interest.
(4) | The maturity date assumes that all extension options are fully exercised and that the Company does not opt to refinance the debt prior to these dates. These extension options are at the Company's discretion, subject to certain conditions, which the Company believes will be met.
(5) | On December 29, 2014, in connection with the sale of the Company's 67.5% ownership interest in the consolidated joint venture in Camelback Colonnade (See Note 14—Dispositions), a third party assumed the existing loan on the property. As a result, the Company has been discharged from this non-recourse loan.
(6) | A 49.9% interest in the loan has been assumed by a third party in connection with a co-venture arrangement (See Note 10—Co-Venture Arrangement).
(7) | The construction loan on the property allows for borrowings of up to $140,000, bears interest at LIBOR plus 2.50% and matures on March 5, 2017, including extension options. At December 31, 2014 and 2013, the total interest rate was 2.97% and 2.96%, respectively.
(8) | On December 22, 2014, the Company paid off in full the loan on the property, which resulted in a loss of $5,796 on the early extinguishment of debt.
(9) | On January 1, 2015, this nonrecourse loan went into maturity default. The Company is working with the loan servicer, which is expected to result in a transition of the property to the loan servicer or a receiver.
(10) | On November 14, 2014, in connection with the acquisition of the PPRLP Queens Portfolio (See Note 13—Acquisitions), the Company assumed the loan on Lakewood Center with a fair value of $254,880 that bears interest at an effective rate of 1.80% and matures on June 1, 2015.
(11) | On November 14, 2014, in connection with the acquisition of the PPRLP Queens Portfolio (See Note 13—Acquisitions), the Company assumed the loan on Los Cerritos Center with a fair value of $207,528 that bears interest at an effective rate of 1.65% and matures on July 1, 2018.
(12) | The loan bears interest at LIBOR plus 2.25% and matures on March 1, 2017. At December 31, 2014 and 2013, the total interest rate was 3.05% and 3.04%, respectively.
(13) | On November 14, 2014, in connection with the acquisition of the PPRLP Queens Portfolio (See Note 13—Acquisitions), the Company assumed the loan on Queens Center with a fair value of $600,000 that bears interest at an effective rate of 3.49% and matures on January 1, 2025.
(14) | On February 7, 2014, the Company paid off in full one of the two loans on the property, which resulted in a loss of $359 on the early extinguishment of debt. On November 10, 2014, the Company paid off in full the remaining loan on the property, which resulted in a loss of $163 on the early extinguishment of debt.
(15) | On November 14, 2014, in connection with the acquisition of the PPRLP Queens Portfolio (See Note 13—Acquisitions), the Company assumed the loan on Stonewood Center with a fair value of $111,910 that bears interest at an effective rate of 1.80% and matures on November 1, 2017.
(16) | The loan bears interest at LIBOR plus 2.30% and matures on October 28, 2016. At December 31, 2014 and 2013, the total interest rate was 1.98% and 2.00%, respectively.
(17) | On August 28, 2014, the Company replaced the existing loan on the property with a new $115,000 loan that bears interest at an effective rate of 4.00% and matures on September 1, 2024. The replacement of the existing loan resulted in a loss of $47 on the early extinguishment of debt.
(18) | On December 22, 2014, the Company paid off in full the loan on the property, which resulted in a loss of $3,186 on the early extinguishment of debt.
(19) | On November 14, 2014, in connection with the acquisition of the PPRLP Queens Portfolio (See Note 13—Acquisitions), the Company assumed the loan on Washington Square with a fair value of $240,341 that bears interest at an effective rate of 1.65% and matures on January 1, 2016.
Most of the mortgage loan agreements contain a prepayment penalty provision for the early extinguishment of the debt. Most of the Company's mortgage notes payable are secured by the properties on which they are placed and are non-recourse to the Company. As of December 31, 2014 and 2013, a total of $73,165 and $77,192, respectively, of the mortgage notes payable could become recourse to the Company. The Company expects all loan maturities during the next twelve months, except Great Northern Mall, will be refinanced, restructured, extended and/or paid-off from the Company's line of credit or with cash on hand. The mortgage note payable on Great Northern Mall, which went into maturity default on January 1, 2015, is a non-recourse loan. The Company is working with the loan servicer and expects the property will be transferred to the loan servicer or a receiver. Total interest expense capitalized during the years ended December 31, 2014, 2013 and 2012 was $12,559, $10,829 and $10,703, respectively. Related party mortgage notes payable are amounts due to affiliates of NML. See Note 17—Related Party Transactions for interest expense associated with loans from NML. The estimated fair value (Level 2 measurement) of mortgage notes payable at December 31, 2014 and 2013 was $5,455,453 and $4,500,177, respectively, based on current interest rates for comparable loans. Fair value was determined using a present value model and an interest rate that included a credit value adjustment based on the estimated value of the property that serves as collateral for the underlying debt. The future maturities of mortgage notes payable are as follows:
2015 | $ | 397,325 |
2016 | 707,605 |
2017 | 353,370 |
2018 | 866,413 |
2019 | 603,090 |
Thereafter | 2,419,797 |
| 5,347,600 |
Debt premium, net | 56,921 |
| $ | 5,404,521 |
The future maturities reflected above reflect the extension options that the Company believes will be exercised.

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