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DEBT OBLIGATIONS
 9 Months Ended
Sep. 30, 2021
DEBT OBLIGATIONS  
DEBT OBLIGATIONS

NOTE 8 – 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, 

​

    

2021

    

2020

Mortgages payable, gross

​

$

406,929

​

$

433,549

Unamortized deferred financing costs

​

 

(3,477)

​

 

(3,845)

Mortgages payable, net

​

$

403,452

​

$

429,704

​

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 it may borrow up to $100,000,000, subject to borrowing base requirements. The facility is available for the acquisition of commercial real estate, repayment of mortgage debt, and renovation and operating expense purposes; provided, that if used for renovation and operating expense purposes, the amount outstanding for such purposes will not exceed the lesser of $30,000,000 and 30% of the borrowing base subject to a cap of (i) $20,000,000 for operating expense purposes and (ii) $10,000,000 for renovation expenses. On July 1, 2022, the amounts the Company can borrow for renovation expenses and operating expenses will change to $20,000,000 and $10,000,000, respectively.  To the extent that as of June 30, 2022 more than $10,000,000 is outstanding for operating expense purposes, such excess must be repaid immediately.  Net proceeds received from the sale, financing or refinancing of properties are generally required to be used to repay amounts outstanding under the credit facility. The facility is guaranteed by subsidiaries of the Company that own unencumbered properties and the Company pledged to the lenders the equity interests in the Company’s subsidiaries.

The facility, which matures December 31, 2022, provides for 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. The applicable margin was 175 and 200 basis points at September 30, 2021 and 2020, respectively. An unused facility fee of .25% per annum applies to the facility. The average interest rate on the facility was approximately 1.86% and 2.64% for the nine months ended September 30, 2021 and 2020, respectively. The Company was in compliance with all covenants under this facility at September 30, 2021.

NOTE 8 – DEBT OBLIGATIONS (CONTINUED)

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

​

​

​

​

​

​

​

​

​

September 30, 

​

December 31, 

​

    

2021

    

2020

Line of credit, gross

​

$

3,200

​

$

12,950

Unamortized deferred financing costs

​

 

(270)

​

 

(425)

Line of credit, net

​

$

2,930

​

$

12,525

​

At November 1, 2021, there was an outstanding balance of $6,700,000 (before unamortized deferred financing costs) and $20,000,000 was available for operating expense purposes under the facility.