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Notes Payable, net (Tables) | 3 Months Ended
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Mar. 31, 2018
Debt Disclosure [Abstract] |
Schedule of long-term debt instruments | The following table sets forth information with respect to our outstanding indebtedness:
| March 31, 2018 |  | December 31, 2017 |  | Interest Rate(1) |  | Contractual Maturity Date |
UNSECURED NOTES PAYABLE |  |  |  |  |  |  |  |
Unsecured Revolving Credit Facility(2)(3) | $ | 20,000 |  |  | $ | 100,000 |  |  | LIBOR + 1.05% to 1.50% |  | 3/13/2022 | (4)
Term Loan A(2)(5) | 300,000 |  |  | 300,000 |  |  | LIBOR + 1.20% to 1.70% |  | 4/1/2020 | (6)
Term Loan C(2) | 75,000 |  |  | 75,000 |  |  | LIBOR + 1.30% to 2.20% |  | 11/17/2020 |
Term Loan B(2)(7) | 350,000 |  |  | 350,000 |  |  | LIBOR + 1.20% to 1.70% |  | 4/1/2022 |
Term Loan D(2)(8) | 125,000 |  |  | 125,000 |  |  | LIBOR + 1.20% to 1.70% |  | 11/17/2022 |
Series A Notes | 110,000 |  |  | 110,000 |  |  | 4.34% |  | 1/2/2023 |
Series E Notes | 50,000 |  |  | 50,000 |  |  | 3.66% |  | 9/15/2023 |
Series B Notes | 259,000 |  |  | 259,000 |  |  | 4.69% |  | 12/16/2025 |
Series D Notes | 150,000 |  |  | 150,000 |  |  | 3.98% |  | 7/6/2026 |
Registered Senior Notes(9) | 400,000 |  |  | 400,000 |  |  | 3.95% |  | 11/1/2027 |
Series C Notes | 56,000 |  |  | 56,000 |  |  | 4.79% |  | 12/16/2027 |
TOTAL UNSECURED NOTES PAYABLE | 1,895,000 |  |  | 1,975,000 |  |  |  |  |  |
SECURED NOTES PAYABLE |  |  |  |  |  |  |  |
Sunset Gower Studios/Sunset Bronson Studios(10) | 5,001 |  |  | 5,001 |  |  | LIBOR + 2.25% |  | 3/4/2019 | (4)
Met Park North(11) | 64,500 |  |  | 64,500 |  |  | LIBOR + 1.55% |  | 8/1/2020 |
10950 Washington(12) | 27,281 |  |  | 27,418 |  |  | 5.32% |  | 3/11/2022 |
Element LA | 168,000 |  |  | 168,000 |  |  | 4.59% |  | 11/6/2025 |
Hill7(13) | 101,000 |  |  | 101,000 |  |  | 3.38% |  | 11/6/2028 |
Rincon Center | — |  |  | 98,392 |  |  | 5.13% |  | N/A |
TOTAL SECURED NOTES PAYABLE | 365,782 |  |  | 464,311 |  |  |  |  |  |
TOTAL NOTES PAYABLE | 2,260,782 |  |  | 2,439,311 |  |  |  |  |  |
Unamortized deferred financing costs and loan discounts(14) | (20,094 | ) |  | (17,931 | ) |  |  |  |  |
TOTAL NOTES PAYABLE, NET | $ | 2,240,688 |  |  | $ | 2,421,380 |  |  |  |  |  |
_________________
(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 March 31, 2018, which may be different than the interest rates as of December 31, 2017 for corresponding indebtedness.
(2) | The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of March 31, 2018, no such election had been made.
(3) | The Company has a total capacity of $600.0 million under its unsecured revolving credit facility.
(4) | The maturity date may be extended once for an additional one-year term.
(5) | The outstanding balance of the term loan was effectively fixed at 2.56% to 3.06% per annum through the use of two interest rate swaps. See Note 9 for details.
(6) | The maturity date may be extended twice, each time for an additional one-year term.
(7) | The outstanding balance of the term loan was effectively fixed at 2.96% to 3.46% per annum through the use of two interest rate swaps. See Note 9 for details.
(8) | The outstanding balance of the term loan was effectively fixed at 2.63% to 3.13% per annum through the use of an interest rate swap. See Note 9 for details.
(9) | On October 2, 2017, the Company completed an underwritten public offering of $400.0 million of senior notes, which were issued at 99.815% of par.
(10) | The Company has the ability to draw up to $257.0 million under its construction loan, subject to lender required submissions.
(11) | This loan bears interest only. Interest on the full loan amount has been effectively fixed at 3.71% per annum through the use of an interest rate swap. See Note 9 for details.
(12) | Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.
(13) | 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. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity.
(14) | Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility.
Schedule of maturities of long-term debt | The following table summarizes the minimum future principal payments due (before the impact of extension options, if applicable) on the operating partnership’s secured and unsecured notes payable as of March 31, 2018:
Year |  | Annual Principal Payments
Remaining 2018 |  | $ | 400 |
2019 |  | 5,569 |
2020 |  | 440,095 |
2021 |  | 632 |
2022 |  | 520,086 |
Thereafter |  | 1,294,000 |
Total |  | $ | 2,260,782 |
Summary of balance and key terms of the unsecured revolving credit facility | The following table summarizes the balance and key terms of the unsecured revolving credit facility as of:
| March 31, 2018 |  | December 31, 2017
Outstanding borrowings | $ | 20,000 |  |  | $ | 100,000 |
Remaining borrowing capacity | 580,000 |  |  | 300,000 |
Total borrowing capacity | $ | 600,000 |  |  | $ | 400,000 |
Interest rate(1)(2) | LIBOR + 1.05% to 1.50% |  | LIBOR + 1.15% to 1.85%
Facility fee-annual rate(1) | 0.15% or 0.30% |  | 0.20% or 0.35%
Contractual maturity date(3) | 3/13/2022 |  | 4/1/2019
_________________
(1) | The rate is based on the operating partnership’s leverage ratio. The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of March 31, 2018, no such election had been made.
(2) | The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s specified base rate plus an applicable margin. As of March 31, 2018, no such election had been made.
(3) | The maturity date may be extended once for an additional one-year term.
Summary of existing covenants and their covenant levels | The following table summarizes existing covenants and their covenant levels related to our unsecured revolving credit facility, term loans, and series A, B, D, and E notes, when considering the most restrictive terms:
Covenant Ratio |  | Covenant Level
Total Liabilities to Total Asset Value |  | ≤ 60%
Unsecured Indebtedness to Unencumbered Asset Value |  | ≤ 60%
Adjusted EBITDA to Fixed Charges |  | ≥ 1.5x
Secured Indebtedness to Total Asset Value |  | ≤ 45%
Unencumbered NOI to Unsecured Interest Expense |  | ≥ 2.0x
The following table summarizes existing covenants and their covenant levels related to our registered senior notes:
Covenant Ratio |  | Covenant Level
Debt to Total Assets |  | ≤ 60%
Total Unencumbered Assets to Unsecured Debt |  | ≥ 150%
Consolidated Income Available for Debt Service to Annual Debt Service Charge |  | ≥ 1.5x
Secured Debt to Total Assets |  | ≤ 45%
Schedule of interest costs incurred | The following table represents a reconciliation from the gross interest expense to the amount on the interest expense line item in the Consolidated Statements of Operations:
| Three Months Ended March 31,
| 2018 |  | 2017
Gross interest expense(1) | $ | 22,431 |  |  | $ | 23,190 |
Capitalized interest | (3,586 | ) |  | (2,446 | )
Amortization of deferred financing costs and loan discount, net | 1,658 |  |  | 1,186 |
Interest expense | $ | 20,503 |  |  | $ | 21,930 |
_________________
(1) | Includes interest on the Company’s notes payable and hedging activities.

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