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MORTGAGES PAYABLE | 3 Months Ended
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Mar. 31, 2016
Debt Disclosure [Abstract] |
MORTGAGES PAYABLE | MORTGAGES PAYABLE The following is a summary of mortgages payable as of March 31, 2016 and December 31, 2015.
|  |  |  | Interest Rate at |  | March 31, |  | December 31,
(Amounts in thousands) |  | Maturity |  | March 31, 2016 |  | 2016 |  | 2015
Cross collateralized mortgage on 40 properties: |  |  |  |  |  |  |  |  |  |
Fixed Rate |  | 9/10/2020 |  | 4.34% |  | $ | 529,929 |  |  | $ | 533,459 |
Variable Rate(1) |  | 9/10/2020 |  | 2.36% |  | 60,000 |  |  | 60,000 |
Total cross collateralized |  |  |  |  |  | 589,929 |  |  | 593,459 |
First mortgages secured by: |  |  |  |  |  |  |  |
North Bergen (Tonnelle Avenue) |  | 1/9/2018 |  | 4.59% |  | 74,814 |  |  | 75,000 |
Englewood(3) |  | 10/1/2018 |  | 6.22% |  | 11,537 |  |  | 11,537 |
Montehiedra Town Center, Senior Loan(2)(4) |  | 7/6/2021 |  | 5.33% |  | 88,375 |  |  | 88,676 |
Montehiedra Town Center, Junior Loan(2) |  | 7/6/2021 |  | 3.00% |  | 30,000 |  |  | 30,000 |
Bergen Town Center |  | 4/8/2023 |  | 3.56% |  | 300,000 |  |  | 300,000 |
Las Catalinas |  | 8/6/2024 |  | 4.43% |  | 130,000 |  |  | 130,000 |
Mount Kisco (Target)(5) |  | 11/15/2034 |  | 6.40% |  | 15,187 |  |  | 15,285 |
|  | Total mortgages payable |  | 1,239,842 |  |  | 1,243,957 |
|  | Unamortized debt issuance costs |  | (9,493 | ) |  | (9,974 | )
Total mortgages payable, net unamortized debt issuance costs |  | $ | 1,230,349 |  |  | $ | 1,233,983 |
(1) | Subject to a LIBOR floor of 1.00%, bears interest at LIBOR plus 136 bps.
(2) | On January 6, 2015, we completed the modification of the $120.0 million, 6.04% mortgage loan secured by Montehiedra Town Center. Refer to “Troubled Debt Restructuring” disclosure below.
(3) | On March 30, 2015, we notified the lender that due to tenants vacating, the property’s operating cash flow will be insufficient to pay the debt service; accordingly, at our request, the mortgage loan was transferred to the special servicer. As of March 31, 2016 we are in default and remain in discussions with the special servicer to restructure the terms of the loan including the possibility that the lender will take possession of the property.
(4) | Montehiedra was presented net of unamortized fees of $1.7 million as of December 31, 2015. The net unamortized fees of $1.7 million were revised to be presented with the unamortized debt issuance costs.
(5) | The mortgage payable balance on the loan secured by Mt. Kisco (Target) includes $1.1 million of unamortized debt discount as of March 31, 2016 and December 31, 2015. The effective interest rate including amortization of the debt discount is 7.25% as of March 31, 2016.
The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $860.3 million as of March 31, 2016. Our mortgage loans contain covenants that limit our ability to incur additional indebtedness on these properties and in certain circumstances require lender approval of tenant leases and/or yield maintenance upon repayment prior to maturity. As of March 31, 2016, we were in compliance with all debt covenants. As of March 31, 2016, the principal repayments for the next five years and thereafter are as follows:
(Amounts in thousands) |  |
Year Ending December 31, |  |
2016(1) |  | $ | 12,307 |
2017 |  | 16,784 |
2018 |  | 99,708 |
2019 |  | 17,320 |
2020 |  | 535,113 |
2021 |  | 121,115 |
Thereafter |  | 437,495 |
(1) Remainder of 2016. On January 15, 2015, we entered into a $500 million Revolving Credit Agreement (the “Agreement”) with certain financial institutions. The Agreement has a four-year term with two six-month extension options. Borrowings under the Agreement currently bear interest at LIBOR plus 1.15% and we are required to pay an annual facility fee of 20 basis points which is expensed as incurred. Both the spread over LIBOR and the facility fee are based on our current leverage ratio and are subject to increase if our leverage ratio increases above predefined thresholds. The Agreement contains customary financial covenants including a maximum leverage ratio of 60% and a minimum fixed charge coverage ratio of 1.5x. No amounts have been drawn to date under the Agreement. Deferred financing fees associated with the Agreement of $2.7 million and $2.8 million as of March 31, 2016 and December 31, 2015, respectively, are included in deferred financing fees in the consolidated balance sheets. Troubled Debt Restructuring During the year ended December 31, 2014, Montehiedra Town Center (“Montehiedra”), our property in the San Juan area of Puerto Rico, was experiencing financial difficulties which resulted in a substantial decline in its net operating cash flows. As such, we transferred the mortgage loan secured by Montehiedra to the special servicer and discussed restructuring the terms of the mortgage loan. In January 2015 we completed the modification of the $120.0 million, 6.04% mortgage loan secured by Montehiedra. The loan has been extended from July 2016 to July 2021 and separated into two tranches, a senior $90.0 million position with interest at 5.33% to be paid currently and a junior $30.0 million position with interest accruing at 3.0%. As part of the planned redevelopment of the property, we committed to fund $20.0 million through an intercompany loan for leasing and building capital expenditures of which $10.1 million has been funded as of March 31, 2016. This $20.0 million intercompany loan is senior to the $30.0 million position noted above and accrues interest at 10%. Both the intercompany loan and related interest are eliminated in our consolidated and combined financial statements. We incurred $2.0 million of debt issuance costs in connection with the loan modification which are treated as a reduction of the mortgage payable balance and amortized over the term of the loan in accordance with the provisions under the Troubled Debt Restructuring Topic of the FASB ASC.

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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 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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