Mortgage Notes Payable:

Mortgage notes payable at September 30, 2017 and December 31, 2016 consist of the following:



	Carrying Amount of Mortgage Notes(1)
	September 30, 2017				December 31, 2016
Property Pledged as Collateral	Related Party		Other		Related Party		Other		Effective Interest Rate(2)		Monthly Debt Service(3)		Maturity Date(4)
Chandler Fashion Center(5)	$	—	$	199,885	$	—	$	199,833	3.77	%	$	625	2019
Danbury Fair Mall	105,448		105,448		107,929		107,928		5.53	%	1,538		2020
Fashion Outlets of Chicago(6)	—		199,218		—		198,966		2.90	%	457		2020
Fashion Outlets of Niagara Falls USA	—		113,534		—		115,762		4.89	%	727		2020
Freehold Raceway Mall(5)(7)	—		217,379		—		220,643		4.20	%	1,132		2018
Fresno Fashion Fair	—		323,208		—		323,062		3.67	%	971		2026
Green Acres Commons(8)	—		107,446		—		—		3.96	%	312		2021
Green Acres Mall	—		293,004		—		297,798		3.61	%	1,447		2021
Kings Plaza Shopping Center	—		449,709		—		456,958		3.67	%	2,229		2019
Northgate Mall(9)	—		—		—		63,434		—		—		—
Oaks, The	—		197,875		—		201,235		4.14	%	1,064		2022
Pacific View	—		125,136		—		127,311		4.08	%	668		2022
Queens Center	—		600,000		—		600,000		3.49	%	1,744		2025
Santa Monica Place(10)	—		215,508		—		219,564		2.99	%	1,004		2018
SanTan Village Regional Center	—		125,470		—		127,724		3.14	%	589		2019
Stonewood Center(11)	—		94,994		—		99,520		1.80	%	640		2017
Towne Mall	—		21,266		—		21,570		4.48	%	117		2022
Tucson La Encantada	67,362		—		68,513		—		4.23	%	368		2022
Victor Valley, Mall of	—		114,602		—		114,559		4.00	%	380		2024
Vintage Faire Mall	—		265,195		—		269,228		3.55	%	1,256		2026
Westside Pavilion	—		141,987		—		143,881		4.49	%	783		2022
	$	172,810	$	3,910,864	$	176,442	$	3,908,976

(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	September 30, 2017		December 31, 2016
Fashion Outlets of Niagara Falls USA	$	2,862	$	3,558
Stonewood Center	246		2,349
	$	3,108	$	5,907

The mortgage notes payable balances also include unamortized deferred finance costs that are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. Unamortized deferred finance costs were $12,810 and $12,716 at September 30, 2017 and December 31, 2016, respectively.


(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)	The loan bears interest at LIBOR plus 1.50% and matures on March 31, 2020. At September 30, 2017 and December 31, 2016, the total interest rate was 2.90% and 2.43%, respectively.


(7)	On October 19, 2017, the joint venture replaced the existing loan on the property with a new $400,000 loan that bears interest at 3.90% and matures on November 1, 2029 (See Note 19—Subsequent Events).


(8)	On September 29, 2017, the Company placed a new $110,000 loan on the property that bears interest at LIBOR plus 2.15% and matures on March 29, 2021. The loan can be expanded, depending on certain conditions, up to $130,000. At September 30, 2017, the total interest rate was 3.96%.


(9)	On January 18, 2017, the loan was paid off in connection with the sale of the underlying property (See Note 14—Dispositions).


(10)	On October 13, 2017, the Company entered into a loan commitment with a lender to replace the existing loan on the property with a new $300,000 five-year floating rate loan. The new loan is expected to close in the fourth quarter of 2017. The Company expects to use the excess proceeds to pay down its line of credit (See Note 19—Subsequent Events).


(11)	On November 1, 2017, the Company paid off the loan on the property (See Note 19—Subsequent Events).

Most of the mortgage loan agreements contain a prepayment penalty provision for the early extinguishment of the debt.

The Company's mortgage notes payable are secured by the properties on which they are placed and are non-recourse to the Company.

The Company expects that all loan maturities during the next twelve months will be refinanced, restructured, extended and/or paid-off from the Company's line of credit or with cash on hand.

Total interest expense capitalized was $3,428 and $2,707 for the three months ended September 30, 2017 and 2016, respectively, and $9,405 and $7,572 for the nine months ended September 30, 2017 and 2016, respectively.

Related party mortgage notes payable are amounts due to an affiliate 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 September 30, 2017 and December 31, 2016 was $4,112,364 and $4,126,819, 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.