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DEBT OBLIGATIONS
 6 Months Ended
Jun. 30, 2022
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):

​

​

​

​

​

​

​

​

​

June 30, 

​

December 31, 

​

    

2022

    

2021

Mortgages payable, gross

​

$

402,815

​

$

399,660

Unamortized deferred financing costs

​

 

(3,339)

​

 

(3,316)

Mortgages payable, net

​

$

399,476

​

$

396,344

​

​

Line of Credit

The Company has a credit facility with Manufacturers & Traders Trust Company and VNB New York, LLC, 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 renovation purposes and (ii) $10,000,000 for operating expense purposes. 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 is required to pledge to the lenders the equity interests in such subsidiaries.

NOTE 8 – DEBT OBLIGATIONS (CONTINUED)

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 basis points at June 30, 2022 and 2021. An unused facility fee of .25% per annum applies to the facility. The weighted average interest rate on the facility was approximately 2.31% and 1.86% for the six months ended June 30, 2022 and 2021, respectively. The Company was in compliance with all covenants at June 30, 2022.

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

​

​

​

​

​

​

​

​

​

June 30, 

​

December 31, 

​

    

2022

    

2021

Line of credit, gross

​

$

27,500

​

$

11,700

Unamortized deferred financing costs

​

 

(108)

​

 

(216)

Line of credit, net

​

$

27,392

​

$

11,484

​

At August 1, 2022, there was an outstanding balance of $17,500,000 (before unamortized deferred financing costs) and an aggregate of up to $30,000,000 was available for renovation and operating expense purposes under the facility.