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Debt | 9 Months Ended
--- | ---
Sep. 30, 2017
Debt Disclosure [Abstract] |
Debt | Debt A summary of the Company’s consolidated indebtedness is as follows (dollars in thousands):
| Interest Rate |  | Maturity Date at September 30, 2017 |  | Carrying Value
| September 30, 2017 |  | December 31, 2016 |  |  | September 30, 2017 |  | December 31, 2016
Mortgages Payable |  |  |  |  |  |  |  |  |
Core Fixed Rate | 3.88%-5.89% |  | 3.88%-5.89% |  | February 2024 - April 2035 |  | $ | 180,259 |  |  | $ | 234,875 |
Core Variable Rate - Swapped (a) | 1.71%-3.77% |  | 1.71%-3.77% |  | June 2018 - June 2026 |  | 80,492 |  |  | 82,250 |
Total Core Mortgages Payable |  |  |  |  |  |  | 260,751 |  |  | 317,125 |
Fund II Fixed Rate | 1.00%-4.75% |  | 1.00%-5.80% |  | October 2017 - May 2020 |  | 224,262 |  |  | 249,762 |
Fund II Variable Rate | LIBOR+0.79% -LIBOR+2.50% |  | LIBOR+0.62% -LIBOR+2.50% |  | December 2017 - November 2021 |  | 126,077 |  |  | 142,750 |
Fund II Variable Rate - Swapped (a) | 2.88% |  | 2.88% |  | November 2021 |  | 19,616 |  |  | 19,779 |
Total Fund II Mortgages Payable |  |  |  |  |  |  | 369,955 |  |  | 412,291 |
Fund III Variable Rate | Prime+0.50% -LIBOR+4.65% |  | Prime+0.50% -LIBOR+4.65% |  | March 2018 - December 2021 |  | 69,632 |  |  | 83,467 |
Fund IV Fixed Rate | 3.40%-4.50% |  | 3.40%-4.50% |  | October 2025-June 2026 |  | 10,503 |  |  | 10,503 |
Fund IV Variable Rate | LIBOR+1.70% -LIBOR+3.95% |  | LIBOR+1.70% - LIBOR+3.95% |  | October 2017 - April 2022 |  | 268,554 |  |  | 233,139 |
Fund IV Variable Rate - Swapped (a) | 1.78% |  | 1.78% |  | May 2019 - April 2022 |  | 81,156 |  |  | 14,509 |
Total Fund IV Mortgages Payable |  |  |  |  |  |  | 360,213 |  |  | 258,151 |
Net unamortized debt issuance costs |  |  |  |  |  |  | (15,555 | ) |  | (16,642 | )
Unamortized premium |  |  |  |  |  |  | 881 |  |  | 1,336 |
Total Mortgages Payable |  |  |  |  |  |  | $ | 1,045,877 |  |  | $ | 1,055,728 |
Unsecured Notes Payable |  |  |  |  |  |  |  |  |
Core Unsecured Term Loans | LIBOR+1.30% -LIBOR+1.60% |  | LIBOR+1.30% -LIBOR+1.60% |  | July 2020 - December 2022 |  | $ | 26,459 |  |  | $ | 51,194 |
Core Variable Rate Unsecured Term Loans - Swapped (a) | 1.24%-3.77% |  | 1.24%-3.77% |  | July 2018 - March 2025 |  | 273,541 |  |  | 248,806 |
Total Core Unsecured Notes Payable |  |  |  |  |  |  | 300,000 |  |  | 300,000 |
Fund II Unsecured Notes Payable | LIBOR+1.65% |  |  |  | September 2020 |  | 31,500 |  |  | — |
Fund IV Term Loan/Subscription Facility | LIBOR+1.65% -LIBOR+2.75% |  | LIBOR+1.65% -LIBOR+2.75% |  | October 2017- December 2017 |  | 54,920 |  |  | 134,636 |
Fund V Subscription Facility | LIBOR+1.60% |  | LIBOR+1.60% |  | May 2020 |  | 113,200 |  |  | — |
Net unamortized debt issuance costs |  |  |  |  |  |  | (1,650 | ) |  | (1,646 | )
Total Unsecured Notes Payable |  |  |  |  |  |  | $ | 497,970 |  |  | $ | 432,990 |
Unsecured Line of Credit |  |  |  |  |  |  |  |  |
Core Unsecured Line of Credit | LIBOR+1.40% |  | LIBOR+1.40% |  | June 2020 |  | $ | 59,000 |  |  | $ | — |
Total Unsecured Line of Credit |  |  |  |  |  |  | $ | 59,000 |  |  | $ | — |
Total Debt - Fixed Rate (b) |  |  |  |  |  | $ | 869,829 |  |  | $ | 860,484 |
Total Debt - Variable Rate |  |  |  |  |  |  | 749,342 |  |  | 645,186 |
Total Debt |  |  |  |  |  | 1,619,171 |  |  | 1,505,670 |
Net unamortized debt issuance costs |  |  |  |  |  |  | (17,205 | ) |  | (18,288 | )
Unamortized premium |  |  |  |  |  |  | 881 |  |  | 1,336 |
Total Indebtedness |  |  |  |  |  |  | $ | 1,602,847 |  |  | $ | 1,488,718 |
__________
(a) | At September 30, 2017, the stated rates ranged from LIBOR + 1.08% to LIBOR +1.90% for Core variable-rate debt; LIBOR + 0.79% to LIBOR +2.50% for Fund II variable-rate debt; PRIME + 0.50% to LIBOR +4.65% for Fund III variable-rate debt; LIBOR + 1.70% to LIBOR +3.95% for Fund IV variable-rate debt and LIBOR + 1.30% to LIBOR +1.60% for Core variable-rate unsecured notes.
(b) | Includes $454,805 and $365,343, respectively, of variable-rate debt that has been fixed with interest rate swap agreements as of the periods presented.
Mortgages Payable During the nine months ended September 30, 2017, the Company obtained nine new non-recourse mortgages totaling $128.3 million with a weighted-average interest rate of LIBOR + 3.43% collateralized by nine properties, which mature between February 14, 2020 and April 1, 2022. The Company entered into interest rate swap contracts to effectively fix the variable portion of the interest rates of seven of these obligations with a notional value of $67.3 million at a weighted-average rate of 1.92%. During 2017, the Company repaid six mortgages in full, which had a total balance of $112.5 million and a weighted-average interest rate of 4.76%, and made scheduled principal payments of $5.8 million. At September 30, 2017 and December 31, 2016, the Company’s mortgages were collateralized by 45 and 39 properties, respectively, and the related tenant leases. Certain loans are cross-collateralized and contain cross-default provisions. The loan agreements contain customary representations, covenants and events of default. Certain loan agreements require the Company to comply with affirmative and negative covenants, including the maintenance of debt service coverage and leverage ratios. A portion of the Company’s variable-rate mortgage debt has been effectively fixed through certain cash flow hedge transactions (Note 8). The mortgage loan related to Brandywine Holdings in the Company’s Core Portfolio amounted to $26.3 million and was in default at September 30, 2017 and December 31, 2016. This loan bears interest at 5.99%, excluding default interest of 5%, and is collateralized by a property, in which the Company holds a 22% controlling interest. In April 2017, the lender on this mortgage initiated a lawsuit against the Company for the full balance of the principal, accrued interest as well as penalties and fees aggregating approximately $31.0 million. The Company’s management believes that the mortgage is not recourse to the Company and that the suit is without merit. In addition, at September 30, 2017, a mortgage loan in the amount of $14.3 million and collateralized by a Fund II property, was in default because its liquidity covenant had been breached. See Note 15 for information about additional financing obtaining after September 30, 2017. Unsecured Notes Payable The Company completed the following transactions related to its unsecured notes payable during the nine months ended September 30, 2017:
• | The Company reduced its maximum commitment available on the Fund IV subscription line of credit from $100.0 million to $21.5 million. The balance was $20.4 million at September 30, 2017 and $94.5 million at December 31, 2016. Total available credit at September 30, 2017 and December 31, 2016 was $1.1 million and $5.5 million, respectively on this line.
• | Fund IV also has a $50.0 million bridge facility. The balance was $34.5 million at September 30, 2017 and $40.1 million at December 31, 2016. The Company was in compliance with the liquidity covenant for this facility at September 30, 2017, but was not in compliance at December 31, 2016. Total available credit at each of September 30, 2017 and December 31, 2016 was $0.0 on this facility. In October 2017, this facility was refinanced (Note 15).
• | The Company obtained a new Fund V subscription line in the amount of $150.0 million secured by Fund V’s unfunded capital commitments with an interest rate of LIBOR plus 160 basis points and maturing in May 2020. The Fund V subscription line is also guaranteed by the Operating Partnership. The outstanding balance was $113.2 million and total available credit was $36.8 million at September 30, 2017.
• | The Company obtained a new Fund II loan in the amount of $40.0 million secured by the real estate assets of City Point Phase II with an interest rate of LIBOR plus 140 basis points and maturing in September 2020. The Fund II loan is also guaranteed by the Company and the Operating Partnership. The outstanding balance was $31.5 million and total available credit was $8.5 million at September 30, 2017.
Unsecured Line of Credit At September 30, 2017 and December 31, 2016, the Company had a total of $79.7 million and $147.5 million, respectively available under its unsecured line of credit. The Company completed the following transactions related to its unsecured line of credit during the nine months ended September 30, 2017:
• | In connection with the repayments of two secured mortgage notes payable, the Company drew down $59.0 million through September 30, 2017. The total available balance was $79.7 million reflecting $11.3 million of outstanding letters of credit as of September 30, 2017.
Scheduled Debt Principal Payments The scheduled principal repayments of the Company’s consolidated indebtedness, as of September 30, 2017 are as follows (in thousands):
Year Ending December 31, |
2017 (Remainder) | $ | 174,707 |
2018 | 88,308 |
2019 | 228,523 |
2020 | 573,807 |
2021 | 255,055 |
Thereafter | 298,771 |
| 1,619,171 |
Unamortized fair market value of assumed debt | 881 |
Net unamortized debt issuance costs | (17,205 | )
Total indebtedness | $ | 1,602,847 |
See Note 4 for information about liabilities of the Company’s unconsolidated affiliates.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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