XML 22 R12.htm IDEA: XBRL DOCUMENT v3.25.3
MORTGAGE NOTES PAYABLE
 9 Months Ended
Sep. 30, 2025
MORTGAGE NOTES PAYABLE  
MORTGAGE NOTES PAYABLE

NOTE 5. MORTGAGE NOTES PAYABLE

At September 30, 2025 and December 31, 2024, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At September 30, 2025, the interest rates on these loans ranged from 2.97% to 5.99%, payable in monthly installments aggregating approximately $2,103,000 including principal, to various dates through 2035. The majority of the mortgages are subject to prepayment penalties. At September 30, 2025, the weighted average interest rate on the above mortgages was 4.22%. The effective rate of 4.30% includes the amortization expense of deferred financing costs. See Note 12 for fair value information. The Partnership’s mortgage debt and the mortgage debt of its unconsolidated joint ventures generally is non-recourse except for customary exceptions pertaining to misuse of funds and material misrepresentations.

Financing fees of approximately $2,930,000 and $2,399,000 are net of accumulated amortization of approximately $2,050,000 and $1,733,000 at September 30, 2025 and December 31, 2024, respectively, which offset the total mortgage notes payable.

The Partnership has pledged tenant leases as additional collateral for certain of these loans.

On May 30, 2025, the Partnership borrowed $18,664,000 at a fixed interest rate of 5.84%. Proceeds were used to refinance the existing mortgage on Hamilton Highlands. Also on May 30, 2025, the Partnership borrowed an additional $40,000,000 at a fixed rate of 5.99%. Proceeds were subsequently used for the purchase of Hill Estates. Both advances were made from the existing Master Credit Facility as amended with KeyBank.

On June 18, 2025, the Partnership entered into an interim loan agreement with KeyBank for $67,500,000 at a floating interest rate of the SOFR rate plus 150 basis points. The note is due on December 17, 2025. Proceeds of the loan were used for the purchase of Hill Estates. The loan is secured by a mortgage on the property and is limited guaranteed by the Partnership. The Loan is prepayable, without prepayment penalty, upon not less than seven (7) days prior written notice to KeyBank as the Lender. The Partnership is currently in the process of refinancing the loan.

​

On July 10, 2025, the Partnership borrowed an additional $682,520 from Brookline Bank as an earnout in connection with the loan at Staples Plaza. The earnout tranche bears an interest rate of 5.97%, is coterminous with the original underlying loan, and amortizes on a 30-year schedule.

​

Approximate annual maturities at September 30, 2025 are as follows:

​

​

​

​

​

​

2026—current maturities

    

$

74,120,000

 

2027

​

 

3,226,000

​

2028

​

 

52,320,000

​

2029

​

 

28,566,000

​

2030

​

 

21,590,000

​

Thereafter

​

 

334,355,000

​

​

​

​

514,177,000

​

Less: unamortized deferred financing costs

​

​

2,930,000

​

​

​

$

511,247,000

​

​

Line of Credit

On November 21, 2024, the Partnership entered into an agreement with Brookline Bank for a new $25,000,000 revolving line of credit. The term of the line is three years with a floating interest rate equal to a base rate of the SOFR Rate for a period of one month plus the applicable margin of 2.5%. The loan covenants include a leverage ratio not to exceed 65%, a debt service coverage ratio of not less than 1.5 to 1.0, maximum usage of 1.5 times trailing 12 months EBITDA, minimum liquidity of $15 million, and a minimum debt yield of 8.5%. The Partnership incurred a commitment fee of $125,000. The Partnership will be charged annually an unused line fee, equal to seventy-five basis points (0.75%) between the difference of the maximum availability and the outstanding principal of the line of credit. This fee is waived for any period in which the Partnership maintains aggregate deposits of twenty million dollars with the Lender. As of September 30, 2025, the Partnership was in compliance with the financial covenants except for the liquidity covenant, and did not incur an unused line fee.

The line of credit may be used for acquisition, refinancing, improvements, working capital and other needs of the Partnership. The line may not be used to pay dividends, make distributions or acquire equity interests of the Partnership.

The line of credit is collateralized by varying percentages of the Partnership’s ownership interest in 29 of its Subsidiary Partnerships and Joint Ventures. Pledged interests are 49% of the Partnership’s ownership interest in the respective entities.