XML 47 R29.htm IDEA: XBRL DOCUMENT v3.6.0.2
Notes Payable (Tables)
 12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Schedule of Notes Payable
The following table summarizes the balances of the Company’s indebtedness as of:
 
December 31, 2016
 
December 31, 2015
Notes payable
$
2,707,839

 
$
2,278,445

Less: unamortized loan premium and deferred financing costs, net(1)
(19,829
)
 
(17,729
)
Notes payable, net
$
2,688,010

 
$
2,260,716

_____________
(1)
Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility and undrawn term loans of $1.5 million and $4.1 million as of December 31, 2016 and December 31, 2015, respectively, which are included in prepaid expenses and other assets, net in the Consolidated Balance Sheets. 
Schedule of Long-term Debt Instruments
The following table sets forth information as of December 31, 2016 and 2015 with respect to the Company’s outstanding indebtedness, excluding net deferred financing costs related to unsecured revolving credit facility and undrawn term loans:
 
December 31, 2016
 
December 31, 2015
 
 
 
 
 
 
Principal Amount
 
Deferred Financing Costs, net
 
Principal Amount
 
Unamortized Loan Premium and Deferred Financing Costs, net
 
Interest Rate(1)
 
Contractual Maturity Date
 
UNSECURED LOANS
 
 
 
 
 
 
 
 
 
 
 
 
Unsecured Revolving Credit Facility(2)
$
300,000

 
$
—

 
$
230,000

 
$
—

 
LIBOR + 1.15% to 1.85%
 
4/1/2019
(3) 
5-Year Term Loan due April 2020(2)(4)
450,000

 
(3,513
)
 
550,000

 
(5,571
)
 
LIBOR + 1.30% to 2.20%
 
4/1/2020
 
5-Year Term Loan due November 2020(2)
175,000

 
(745
)
 
—

 
—

 
LIBOR + 1.30% to 2.20%
 
11/17/2020
 
7-Year Term Loan due April 2022(2)(5)
350,000

 
(2,265
)
 
350,000

 
(2,656
)
 
LIBOR + 1.60% to 2.55%
 
4/1/2022
 
7-Year Term Loan due November 2022(2)(6)
125,000

 
(931
)
 
—

 
—

 
LIBOR + 1.60% to 2.55%
 
11/17/2022
 
Series A Notes
110,000

 
(930
)
 
110,000

 
(1,011
)
 
4.34%
 
1/2/2023
 
Series E Notes
50,000

 
(300
)
 
—

 
—

 
3.66%
 
9/15/2023
 
Series B Notes
259,000

 
(2,271
)
 
259,000

 
(2,378
)
 
4.69%
 
12/16/2025
 
Series D Notes
150,000

 
(898
)
 
—

 
—

 
3.98%
 
7/6/2026
 
Series C Notes
56,000

 
(539
)
 
56,000

 
(509
)
 
4.79%
 
12/16/2027
 
TOTAL UNSECURED LOANS
2,025,000

 
(12,392
)
 
1,555,000

 
(12,125
)
 
 
 
 
 
MORTGAGE LOANS
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Loan secured by Rincon Center(7)
100,409

 
(198
)
 
102,309

 
(355
)
 
5.13%
 
5/1/2018
 
Mortgage Loan secured by Sunset Gower Studios/Sunset Bronson Studios
5,001

 
(1,534
)
 
115,001

 
(2,232
)
 
LIBOR + 2.25%
 
3/4/2019
(3) 
Mortgage Loan secured by Met Park North(8)
64,500

 
(398
)
 
64,500

 
(509
)
 
LIBOR + 1.55%
 
8/1/2020
 
Mortgage Loan secured by 10950 Washington(7)
27,929

 
(354
)
 
28,407

 
(421
)
 
5.32%
 
3/11/2022
 
Mortgage Loan secured by Pinnacle I(9)(10)
129,000

 
(593
)
 
129,000

 
(694
)
 
3.95%
 
11/7/2022
 
Mortgage Loan secured by Element LA
168,000

 
(2,321
)
 
168,000

 
(2,584
)
 
4.59%
 
11/6/2025
 
Mortgage Loan secured by Pinnacle II(10)
87,000

 
(720
)
 
86,228

 
1,310

(11) 
4.30%
 
6/11/2026
 
Mortgage Loan secured by Hill7(12)
101,000

 
(1,319
)
 
—

 
—

 
3.38%
(13) 
11/6/2026
(13) 
Mortgage Loan secured by 901 Market Street
—

 
—

 
30,000

 
(119
)
 
N/A
 
N/A
 
TOTAL MORTGAGE LOANS
682,839

 
(7,437
)
 
723,445

 
(5,604
)
 
 
 
 
 
TOTAL
$
2,707,839

 
$
(19,829
)
 
$
2,278,445

 
$
(17,729
)
 
 
 
 
 

_____________
(1)
Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of December 31, 2016, which may be different than the interest rates as of December 31, 2015 for corresponding indebtedness.
(2)
The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of December 31, 2016, no such election had been made.
(3)
The maturity date may be extended once for an additional one-year term.
(4)
Effective May 1, 2015, $300.0 million of the term loan has been effectively fixed at 2.66% to 3.56% per annum through the use of an interest rate swap. In July 2016, the Company amended this interest rate swap to add a 0.00% floor to one-month LIBOR, and then de-designated the original swap and designated the amended swap as a hedge in order to minimize the ineffective portion of the original derivative instrument related to this loan. Therefore, the effective interest rate with respect to $300.0 million of the term loan increased to a range of 2.75% to 3.65% per annum. See Note 6 for details.
(5)
Effective May 1, 2015, the outstanding balance of the term loan has been effectively fixed at 3.21% to 4.16% per annum through the use of an interest rate swap. In July 2016, the Company amended this interest rate swap to add a 0.00% floor to one-month LIBOR, and then de-designated the original swap and designated the amended swap as a hedge in order to minimize the ineffective portion of the original derivative instrument related to this loan. Therefore, the effective interest rate increased to a range of 3.36% to 4.31% per annum. See Note 6 for details.
(6)
Effective June 1, 2016, the outstanding balance of the term loan has been effectively fixed at 3.03% to 3.98% per annum through the use of an interest rate swap. See Note 6 for details.
(7)
Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.
(8)
This loan bears interest only. Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap. See Note 6 for details.
(9)
This loan bears interest only for the first five years. Beginning with the payment due December 6, 2017, monthly debt service will include annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.
(10)
The Company owns 65% of the ownership interests in the consolidated joint venture that owns the Pinnacle I and II properties. The full amount of the loan is shown.
(11)
Represents unamortized premium amount of the non-cash mark-to-market adjustment.
(12)
The Company owns 55% of the ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown.
(13)
The maturity date can be extended for an additional two years at a higher interest rate and with principal amortization.
Schedule of Restricted Cash and Cash Equivalents
Included in restricted cash on the Company’s Consolidated Balance Sheets at December 31, 2016 and December 31, 2015 are lockbox and reserve funds as follows:
Property
 
December 31, 2016
 
December 31, 2015
Rincon Center
 
$
16,291

 
$
14,237

Element LA
 
2,627

 
1,149

Pinnacle I
 
1,811

 
1,792

Hill7
 
1,643

 
—

Pinnacle II
 
1,382

 
722

10950 Washington
 
1,249

 
1,014

 
 
$
25,003

 
$
18,914
Schedule of Maturities of Long-term Debt
The minimum future principal payments due on the Company’s secured and unsecured notes payable at December 31, 2016 for each of the next five years and thereafter were as follows (before the impact of extension options, if applicable):
Year ended
 
Annual Principal Payments
2017
 
$
2,714

2018
 
101,157

2019
 
307,886

2020
 
692,493

2021
 
3,142

Thereafter
 
1,600,447

Total
 
$
2,707,839