Debt Obligations

9 Months Ended

Sep. 30, 2018

Note 10 – Debt Obligations

Mortgages Payable

The following table details the Mortgages payable, net, balances per the consolidated balance sheets (amounts in thousands):


	September 30,		December 31,
	2018		2017
Mortgages payable, gross	$	407,007	$	396,946
Unamortized deferred financing costs		(4,029)		(3,789)
Mortgages payable, net	$	402,978	$	393,157

Line of Credit

The Company has a credit facility with Manufacturers & Traders Trust Company, People’s United Bank, VNB New York, LLC, and Bank Leumi USA, pursuant to which the Company may borrow up to $100,000,000, subject to borrowing base requirements. The facility, which matures December 31, 2019, provides that the Company pay an interest rate equal to the one month LIBOR rate plus an applicable margin ranging from 175 basis points to 300 basis points depending on the ratio of the Company’s total debt to total value, as determined pursuant to the facility. At September 30, 2018 and 2017, the applicable margin was 175 basis points. An unused facility fee of .25% per annum applies to the facility. The average interest rate on the facility was approximately 3.62% and 2.83% for the nine months ended September 30, 2018 and 2017, respectively. The Company was in compliance with all covenants at September 30, 2018.

The following table details the Line of credit, net, balances per the consolidated balance sheets (amounts in thousands):


	September 30,		December 31,
	2018 (a)		2017
Line of credit, gross	$	—	$	9,400
Unamortized deferred financing costs		—		(624)
Line of credit, net	$	—	$	8,776

(a)

In accordance with ASU 2015-15, as there was no balance outstanding on the Line of credit, the Company reclassified the related unamortized deferred financing costs of $390 to Escrow, deposits, and other assets and receivables on the consolidated balance sheet at September 30, 2018.

At November 2, 2018, there was an outstanding balance of $4,000,000 (before unamortized deferred financing costs) under the facility.