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Mortgage Notes Payable | 9 Months Ended
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Sep. 30, 2024
Debt Disclosure [Abstract] |
Mortgage Notes Payable | Mortgage Notes Payable: Mortgage notes payable at September 30, 2024 and December 31, 2023 consist of the following:
|  | Carrying Amount of Mortgage Notes(1) |  |  |  |  |  |
Property Pledged as Collateral |  | September 30, 2024 |  | December 31, 2023 |  | Effective Interest Rate(2) |  | Monthly Debt Service(3) |  | Maturity Date(4)
Arrowhead Towne Center(5) |  | $ | 351,639 |  |  | $ | — |  |  | 6.75 | % |  | $ | 1,921 |  |  | 2028
Chandler Fashion Center(6) |  | — |  |  | 255,924 |  |  | — | % |  | — |  |  | — |
Danbury Fair Mall(7) |  | 152,071 |  |  | 122,502 |  |  | 6.59 | % |  | 836 |  |  | 2034
Fashion District Philadelphia(8) |  | — |  |  | 70,820 |  |  | — | % |  | — |  |  | — |
Fashion Outlets of Chicago |  | 299,442 |  |  | 299,375 |  |  | 4.61 | % |  | 1,145 |  |  | 2031
Fashion Outlets of Niagara Falls USA(9) |  | 81,565 |  |  | 86,470 |  |  | 6.52 | % |  | 727 |  |  | 2026
Freehold Raceway Mall(6) |  | 399,169 |  |  | 399,044 |  |  | 3.94 | % |  | 1,300 |  |  | 2029
Fresno Fashion Fair |  | 324,603 |  |  | 324,453 |  |  | 3.67 | % |  | 971 |  |  | 2026
Green Acres Mall(10) |  | 361,277 |  |  | 359,264 |  |  | 6.62 | % |  | 1,819 |  |  | 2028
Kings Plaza Shopping Center |  | 537,342 |  |  | 536,956 |  |  | 3.71 | % |  | 1,629 |  |  | 2030
Oaks, The(11) |  | 148,036 |  |  | 151,496 |  |  | 7.75 | % |  | 1,233 |  |  | 2026
Pacific View |  | 70,770 |  |  | 70,976 |  |  | 5.45 | % |  | 328 |  |  | 2032
Queens Center(12) |  | 600,000 |  |  | 600,000 |  |  | 3.49 | % |  | 1,744 |  |  | 2025
Santa Monica Place(13) |  | 298,462 |  |  | 297,474 |  |  | 7.05 | % |  | 1,654 |  |  | 2025
SanTan Village Regional Center |  | 219,573 |  |  | 219,506 |  |  | 4.34 | % |  | 788 |  |  | 2029
South Plains Mall(14) |  | 192,198 |  |  | — |  |  | 7.97 | % |  | 703 |  |  | 2025
Victor Valley, Mall of(15) |  | 84,339 |  |  | 114,966 |  |  | 6.80 | % |  | 476 |  |  | 2034
Vintage Faire Mall |  | 221,730 |  |  | 226,910 |  |  | 3.55 | % |  | 1,256 |  |  | 2026
|  | $ | 4,342,216 |  |  | $ | 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 September 30, 2024 and December 31, 2023 consisted of the following:
Property Pledged as Collateral |  | September 30, 2024 |  | December 31, 2023
Arrowhead Towne Center |  | $ | 29,727 |  |  | $ | — |
South Plains Mall |  | 7,802 |  |  | — |
Total |  | $ | 37,529 |  |  | $ | — |
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 $21,782 and $21,148 at September 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)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 and the related debt has been deconsolidated (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 October 28, 2024, the Company closed a $525,000, five-year refinance of the loan on Queens Center. The new loan bears interest at a fixed rate of 5.37%, is interest only during the entire loan term and matures November 6, 2029. (13)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 was 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. (14)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. (15)On August 22, 2024, the Company replaced the existing loan with an $85,000 loan that bears interest at a fixed rate of 6.72%, is interest only during the entire loan term and matures on September 6, 2034. 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 revolving loan facility or with cash on hand, with the exception of Santa Monica Place as noted above. Total interest expense capitalized was $5,834 and $5,670 for the three months ended September 30, 2024 and 2023, respectively, and $16,224 and $15,364 for the nine months ended September 30, 2024 and 2023, respectively. The estimated fair value (Level 2 measurement) of mortgage notes payable at September 30, 2024 and December 31, 2023 was $4,197,716 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.

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