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Mortgage Notes Payable: | 3 Months Ended
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Mar. 31, 2015
Debt Disclosure [Abstract] |
Mortgage Notes Payable: | Mortgage Notes Payable: Mortgage notes payable at March 31, 2015 and December 31, 2014 consist of the following:
|  | Carrying Amount of Mortgage Notes(1) |  |  |  |  |  |
|  | March 31, 2015 |  | December 31, 2014 |  |  |  |  |  |
Property Pledged as Collateral |  | Related Party |  | Other |  | Related Party |  | Other |  | Effective Interest Rate(2) |  | Monthly Debt Service(3) |  | Maturity Date(4)
Arrowhead Towne Center |  | $ | — |  |  | $ | 226,844 |  |  | $ | — |  |  | $ | 228,703 |  |  | 2.76 | % |  | $ | 1,131 |  |  | 2018 |
Chandler Fashion Center(5) |  | — |  |  | 200,000 |  |  | — |  |  | 200,000 |  |  | 3.77 | % |  | 625 |  |  | 2019 |
Danbury Fair Mall |  | 113,526 |  |  | 113,526 |  |  | 114,265 |  |  | 114,264 |  |  | 5.53 | % |  | 1,538 |  |  | 2020 |
Deptford Mall |  | — |  |  | 196,815 |  |  | — |  |  | 197,815 |  |  | 3.76 | % |  | 947 |  |  | 2023 |
Deptford Mall |  | — |  |  | 14,212 |  |  | — |  |  | 14,285 |  |  | 6.46 | % |  | 101 |  |  | 2016 |
Eastland Mall |  | — |  |  | 168,000 |  |  | — |  |  | 168,000 |  |  | 5.79 | % |  | 811 |  |  | 2016 |
Fashion Outlets of Chicago(6) |  | — |  |  | 200,000 |  |  | — |  |  | 119,329 |  |  | 1.83 | % |  | 278 |  |  | 2020 |
Fashion Outlets of Niagara Falls USA |  | — |  |  | 120,672 |  |  | — |  |  | 121,376 |  |  | 4.89 | % |  | 727 |  |  | 2020 |
Flagstaff Mall |  | — |  |  | 37,000 |  |  | — |  |  | 37,000 |  |  | 5.03 | % |  | 151 |  |  | 2015 |
FlatIron Crossing |  | — |  |  | 259,828 |  |  | — |  |  | 261,494 |  |  | 3.90 | % |  | 1,393 |  |  | 2021 |
Freehold Raceway Mall(5) |  | — |  |  | 228,222 |  |  | — |  |  | 229,244 |  |  | 4.20 | % |  | 1,132 |  |  | 2018 |
Great Northern Mall(7) |  | — |  |  | 34,232 |  |  | — |  |  | 34,494 |  |  | 6.54 | % |  | 234 |  |  | 2015 |
Green Acres Mall |  | — |  |  | 311,859 |  |  | — |  |  | 313,514 |  |  | 3.61 | % |  | 1,447 |  |  | 2021 |
Kings Plaza Shopping Center |  | — |  |  | 478,204 |  |  | — |  |  | 480,761 |  |  | 3.67 | % |  | 2,229 |  |  | 2019 |
Lakewood Center(8) |  | — |  |  | — |  |  | — |  |  | 253,708 |  |  | — |  |  | — |  |  | — |
Los Cerritos Center |  | 102,175 |  |  | 102,176 |  |  | 103,274 |  |  | 103,274 |  |  | 1.65 | % |  | 1,009 |  |  | 2018 |
Northgate Mall(9) |  | — |  |  | 64,000 |  |  | — |  |  | 64,000 |  |  | 3.06 | % |  | 130 |  |  | 2017 |
Oaks, The |  | — |  |  | 209,161 |  |  | — |  |  | 210,197 |  |  | 4.14 | % |  | 1,064 |  |  | 2022 |
Pacific View |  | — |  |  | 132,525 |  |  | — |  |  | 133,200 |  |  | 4.08 | % |  | 668 |  |  | 2022 |
Queens Center |  | — |  |  | 600,000 |  |  | — |  |  | 600,000 |  |  | 3.49 | % |  | 1,744 |  |  | 2025 |
Santa Monica Place |  | — |  |  | 229,022 |  |  | — |  |  | 230,344 |  |  | 2.99 | % |  | 1,004 |  |  | 2018 |
SanTan Village Regional Center |  | — |  |  | 133,073 |  |  | — |  |  | 133,807 |  |  | 3.14 | % |  | 589 |  |  | 2019 |
Stonewood Center |  | — |  |  | 109,869 |  |  | — |  |  | 111,297 |  |  | 1.80 | % |  | 640 |  |  | 2017 |
Superstition Springs Center(10) |  | — |  |  | 68,000 |  |  | — |  |  | 68,079 |  |  | 2.00 | % |  | 139 |  |  | 2016 |
Towne Mall |  | — |  |  | 22,504 |  |  | — |  |  | 22,607 |  |  | 4.48 | % |  | 117 |  |  | 2022 |
Tucson La Encantada |  | 71,148 |  |  | — |  |  | 71,500 |  |  | — |  |  | 4.23 | % |  | 368 |  |  | 2022 |
Valley Mall |  | — |  |  | 41,155 |  |  | — |  |  | 41,368 |  |  | 5.85 | % |  | 280 |  |  | 2016 |
Valley River Center |  | — |  |  | 120,000 |  |  | — |  |  | 120,000 |  |  | 5.59 | % |  | 558 |  |  | 2016 |
Victor Valley, Mall of |  | — |  |  | 115,000 |  |  | — |  |  | 115,000 |  |  | 4.00 | % |  | 380 |  |  | 2024 |
Vintage Faire Mall(11) |  | — |  |  | 280,000 |  |  | — |  |  | — |  |  | 3.55 | % |  | 1,256 |  |  | 2026 |
Washington Square |  | — |  |  | 235,206 |  |  | — |  |  | 238,696 |  |  | 1.65 | % |  | 1,499 |  |  | 2016 |
Westside Pavilion |  | — |  |  | 148,948 |  |  | — |  |  | 149,626 |  |  | 4.49 | % |  | 783 |  |  | 2022 |
|  | $ | 286,849 |  |  | $ | 5,200,053 |  |  | $ | 289,039 |  |  | $ | 5,115,482 |  |  |  |  |  |  |  |  |  |
(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.
Debt premiums (discounts) consist of the following:
Property Pledged as Collateral | March 31, 2015 |  | December 31, 2014
Arrowhead Towne Center | $ | 10,800 |  |  | $ | 11,568 |
Deptford Mall | (7 | ) |  | (8 | )
Fashion Outlets of Niagara Falls USA | 5,182 |  |  | 5,414 |
Lakewood Center | — |  |  | 3,708 |
Los Cerritos Center | 16,695 |  |  | 17,965 |
Stonewood Center | 7,287 |  |  | 7,980 |
Superstition Springs Center | 500 |  |  | 579 |
Valley Mall | (110 | ) |  | (132 | )
Washington Square | 7,426 |  |  | 9,847 |
| $ | 47,773 |  |  | $ | 56,921 |
(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) | 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).
(6) | On March 3, 2015, the Company amended the loan on the property. The amended $200,000 loan bears interest at LIBOR plus 1.50% and matures on March 31, 2020. At March 31, 2015 and December 31, 2014, the total interest rate was 1.83% and 2.97%, respectively.
(7) | On January 1, 2015, this nonrecourse loan went into maturity default. As a result, the Company has accrued additional default interest at a rate of 4% since the default date. 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.
(8) | On February 25, 2015, the Company paid off in full the loan on the property, which resulted in a gain of $2,245 on the early extinguishment of debt as a result of writing off the related debt premium.
(9) | The loan bears interest at LIBOR plus 2.25% and matures on March 1, 2017. At March 31, 2015 and December 31, 2014, the total interest rate was 3.06% and 3.05%, respectively.
(10) | The loan bears interest at LIBOR plus 2.30% and matures on October 28, 2016. At March 31, 2015 and December 31, 2014, the total interest rate was 2.00% and 1.98%, respectively.
(11) | On February 19, 2015, the Company placed a $280,000 loan on the property that bears interest at an effective rate of 3.55% and matures on March 6, 2026.
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 March 31, 2015 and December 31, 2014, a total of $13,500 and $73,165, respectively, of the mortgage notes payable could become recourse to the Company. The Company expects that 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 was $2,629 and $2,485 during the three months ended March 31, 2015 and 2014, respectively. Related party mortgage notes payable are amounts due to affiliates of NML. See Note 16—Related Party Transactions for interest expense associated with loans from NML. The estimated fair value (Level 2 measurement) of mortgage notes payable at March 31, 2015 and December 31, 2014 was $5,538,879 and $5,455,453, 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.

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