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Mortgages Payable, Net
 12 Months Ended
Dec. 31, 2024
Mortgages Payable, net  
Mortgages Payable, Net

6.Mortgages Payable, Net

Mortgages payable, net are summarized as follows:

​

​

​

​

​

​

​

​

​

    

December 31, 

    

December 31, 

in thousands

​

2024

​

2023

Fixed-rate debt

​

​

​

​

​

​

Secured mortgages payable

​

$

41,087

​

$

42,990

Variable-rate debt

​

​

​

​

​

​

Secured mortgages payable

​

 

61,300

​

 

115,000

Unamortized deferred financing costs

​

 

(794)

​

 

(2,362)

Mortgages payable, net

​

$

101,593

​

$

155,628

​

As of December 31, 2024, land, buildings and equipment, developments, and other collateral with an aggregate net book value of $240.0 million have been pledged as collateral for the Company’s debt obligations. Secured mortgages payable are without recourse to the Company at December 31, 2024.

Secured Mortgages Payable

The Company’s outstanding mortgages are collateralized by certain of the Company’s real estate assets. The Company’s fixed-rate debt obligation requires semi-annual installments of principal and interest, and the Company’s

variable-rate debt requires monthly installments of only interest. As of December 31, 2024, the Company’s secured mortgage loans did not have any undrawn lender commitment available to be drawn for property development.

The following table summarizes the Company’s secured mortgages payable:

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

    

December 31, 2023

​

    

​

​

    

Interest

    

​

    

​

​

    

Interest

    

​

$in thousands

​

Principal

​

Rate

​

Maturity Date

​

Principal

​

Rate

​

Maturity Date

Fixed rate (a)

​

$

41,087

 

4.92

%  

December 15, 2038

​

$

42,990

 

4.92

%  

December 15, 2038

Variable rate (b) (c)

​

 

61,300

 

9.49

%  

July 1, 2029

​

 

115,000

 

9.21

%  

September 1, 2026

Secured mortgages payable

​

$

102,387

​

​

​

  

​

$

157,990

 

  

​

  

(a)The Company has one fixed-rate debt obligation as of December 31, 2024, and December 31, 2023. The interest rate presented is based upon the coupon rate of the debt.
(b)The Company has one variable-rate debt obligation as of December 31, 2024, and December 31, 2023. The interest rate presented is based on the applicable reference interest rate as of December 31, 2024, and December 31, 2023.
(c)The Company has a total return swap with the lender in connection with its variable-rate debt. At December 31, 2024, the assumed rate of the indebtedness associated with our variable-rate debt obligation is based on SOFR + 4.5%, which is the combination of the interest rates on two instruments: (i) the variable-rate debt obligation, pursuant to which the Company is obligated to pay the lender an amount equal to SOFR + 5.0%, and (ii) the total return swap, pursuant to which the Company is entitled to receive 0.5% from the lender. The cash flows from this total return swap does not vary based on any underlying and there is no net settlement, as such, it is not considered to meet the criteria of ASC 815 “Derivatives and Hedging” and determined to not be a derivative.

During the year ended December 31, 2024, the Company’s mortgage activity included a repayment of $1.9 million of our fixed rate debt. In connection with and prior to the Separation, on July 31, 2024, the variable rate mortgage related to 250 Water Street was refinanced, with HHH paying down $53.7 million of the outstanding principal balance and SEG refinancing the remaining $61.3 million at an interest rate of SOFR plus a margin of 4.5% and scheduled maturity date of July 1, 2029.

During 2023, the Company’s mortgage activity included refinancings of $100 million, additional draws of $15 million, and repayments of $1.8 million.

On January 1, 2025, the mortgage loan on 250 Water Street was amended to increase the margin from 5% to 7%.  The Company is entitled to receive this 2% increase from the lender by way of the total return swap, resulting in no change in cash flows to the Company. See Note 15 – Subsequent Events for additional information.

Scheduled Maturities

The following table summarizes the contractual obligations relating to the Company’s mortgages payable as of December 31, 2024:

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​

​

​

​

​

    

Mortgages payable

​

​

 principal 

thousands

​

payments

2025

​

$

1,997

2026

​

 

2,097

2027

​

 

2,201

2028

​

 

2,311

2029

​

 

63,726

Thereafter

​

 

30,055

Total principal payments

​

 

102,387

Unamortized deferred financing costs

​

 

(794)

Mortgages payable, net

​

$

101,593

​