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Mortgage Notes Payable
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Mortgage Notes Payable Mortgage Notes Payable:
Mortgage notes payable at June 30, 2024 and December 31, 2023 consist of the following:
Carrying Amount of Mortgage Notes(1)
Property Pledged as CollateralJune 30, 2024December 31, 2023Effective Interest
Rate(2)		Monthly
Debt
Service(3)		Maturity
Date(4)
Arrowhead Towne Center(5)$351,353 $— 6.75 %$1,921 2028
Chandler Fashion Center(6)— 255,924 — %— — 
Danbury Fair Mall(7)151,996 122,502 6.59 %836 2034
Fashion District Philadelphia(8)— 70,820 — %— — 
Fashion Outlets of Chicago299,420 299,375 4.61 %1,145 2031
Fashion Outlets of Niagara Falls USA(9)82,376 86,470 6.51 %727 2026
Freehold Raceway Mall(6)399,127 399,044 3.94 %1,300 2029
Fresno Fashion Fair324,553 324,453 3.67 %971 2026
Green Acres Mall(10)360,606 359,264 6.62 %1,819 2028
Kings Plaza Shopping Center537,214 536,956 3.71 %1,629 2030
Oaks, The(11)148,943 151,496 7.72 %1,233 2026
Pacific View70,967 70,976 5.45 %328 2032
Queens Center600,000 600,000 3.49 %1,744 2025
Santa Monica Place(12)298,132 297,474 7.28 %1,712 2025
SanTan Village Regional Center219,551 219,506 4.34 %788 2029
South Plains Mall(13)190,536 — 7.97 %703 2025
Victor Valley, Mall of114,995 114,966 4.00 %380 2024
Vintage Faire Mall223,465 226,910 3.55 %1,256 2026
$4,373,234 $4,136,136    

(1)The mortgage notes payable balances include the unamortized debt discounts. Debt discounts represent the deficiency of the fair value of debt under the principal value of debt assumed in various acquisitions. The debt discounts are being amortized into interest expense over the term of the related debt in a manner which approximates the effective interest method. The debt discounts as of June 30, 2024 and December 31, 2023 consisted of the following:
Property Pledged as CollateralJune 30,
2024		December 31,
2023
Arrowhead Towne Center$31,903 $— 
South Plains Mall9,464 — 
Total$41,367 $— 

The mortgage notes payable 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 $22,641 and $21,148 at June 30, 2024 and December 31, 2023, respectively.
(2)The interest rate disclosed represents the effective interest rate, including the impact of debt 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 May 14, 2024, the Company acquired the remaining 40% ownership interest in Arrowhead Towne Center that it did not previously own and has consolidated its 100% interest (See Note 15—Acquisitions). In connection with the acquisition, the Company assumed the partner's share of the loan on the property.
(6)A 49.9% interest in the loan had been assumed by a third party in connection with the Company's joint venture in Chandler Freehold (See Note 12—Financing Arrangement). On November 16, 2023, the Company acquired the partner's 49.9% interest in Freehold Raceway Mall for $5.6 million and assumed the partner's share of debt. The Company now owns 100% of Freehold Raceway Mall (See Note 15—Acquisitions). On June 13, 2024, the partnership agreement between the Company and its partner was amended and as a result, the Company no longer accounts for its investment in Chandler Fashion Center as a financing arrangement. Effective June 13, 2024, the Company accounts for its investment in Chandler Fashion Center under the equity method of accounting (See Note 12—Financing Arrangement and Note 16—Dispositions).
(7)On January 25, 2024, the Company replaced the existing loan with a $155,000 loan that bears interest at a fixed rate of 6.39%, is interest only during the majority of the loan term and matures on February 6, 2034.
(8)On January 20, 2023, the Company repaid $26,107 of the outstanding loan balance and exercised its one-year extension option of the loan to January 22, 2024. The interest rate was SOFR plus 3.60%. On January 22, 2024, the Company repaid the majority of the loan balance and the remaining $8,171 matured on April 21, 2024 and was paid in full on April 19, 2024.
(9)Effective October 6, 2023, the loan was in default and the Company was in negotiations with the lender on the terms of this non-recourse loan. On March 19, 2024, the Company closed on a three-year extension of the loan to October 6, 2026. The interest rate remained unchanged at 5.90%.
(10)On January 3, 2023, the Company closed on a five-year $370,000 combined refinance of Green Acres Mall and Green Acres Commons. The new interest only loan bears interest at a fixed rate of 5.90% and matures on January 6, 2028.
(11)On May 6, 2022, the Company closed on a two-year extension of the loan to June 5, 2024 at a new fixed interest rate of 5.25%. The Company repaid $5,000 of the outstanding loan balance at closing. On June 5, 2023, the Company repaid $10,000 of the outstanding loan balance. On May 24, 2024, the Company closed on a two-year extension of the loan to June 5, 2026. The interest rate during the first year of the extended term will be 7.50%, increasing to 8.50% during the second year of the extended term.
(12)On December 9, 2022, the Company closed on a three-year extension of the loan to December 9, 2025, including extension options. The interest rate remained unchanged at LIBOR plus 1.48%, and has converted to 1-month Term SOFR plus 1.52% effective July 9, 2023. The loan is covered by an interest rate cap agreement that effectively prevented LIBOR from exceeding 4.0% during the period ending December 9, 2023. The interest rate cap agreement was converted to 1-month Term SOFR effective July 9, 2023. The interest rate cap agreement has since been extended with a 4% strike rate to December 9, 2024. Effective April 9, 2024, the loan is in default and the Company is in negotiations with the lender on the terms of this non-recourse loan.
(13)On May 14, 2024, the Company acquired the remaining 40% ownership interest in South Plains Mall that it did not previously own and has consolidated its 100% interest (See Note 15—Acquisitions). In connection with the acquisition, the Company assumed the partner's share of the loan on the property.
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, with the exception of Santa Monica Place as noted above.
Total interest expense capitalized was $5,313 and $4,850 for the three months ended June 30, 2024 and 2023, respectively, and $10,389 and $9,693 for the six months ended June 30, 2024 and 2023, respectively.
The estimated fair value (Level 2 measurement) of mortgage notes payable at June 30, 2024 and December 31, 2023 was $4,158,327 and $3,863,997, 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.