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Debt | 3 Months Ended
--- | ---
Mar. 31, 2018
Debt Disclosure [Abstract] |
Debt | 5. Debt Mortgage Loans, Net. As of March 31, 2018 and December 31, 2017, we had approximately $357.2 million and approximately $297.3 million of outstanding mortgage debt, respectively. The following table sets forth our mortgage debt obligations on our hotels.
|  | Balance Outstanding as of |  |  |  |  |  |  |  |  |  |  |  |
|  | March 31, |  |  | December 31, |  |  | Prepayment |  | Maturity |  | Amortization |  | Interest |  |
Property |  | 2018 |  |  | 2017 |  |  | Penalties |  | Date |  | Provisions |  | Rate |  |
Crowne Plaza Tampa Westshore (1) |  | $ | 15,214,900 |  |  | $ | 15,284,200 |  |  | None |  | 6/30/2019 |  | n/a |  | LIBOR plus 3.75 % |  |
The DeSoto (2) |  |  | 34,443,790 |  |  |  | 34,645,929 |  |  | Yes |  | 7/1/2026 |  | 25 years |  | 4.25% |  |
DoubleTree by Hilton Jacksonville Riverfront (3) |  |  | 35,160,939 |  |  |  | 35,294,741 |  |  | Yes |  | 7/11/2024 |  | 30 years |  | 4.88% |  |
DoubleTree by Hilton Laurel (4) |  |  | 9,065,885 |  |  |  | 9,132,558 |  |  | Yes |  | 8/5/2021 |  | 25 years |  | 5.25% |  |
DoubleTree by Hilton Philadelphia Airport (5) |  |  | 30,231,427 |  |  |  | 30,432,260 |  |  | None |  | 4/1/2019 |  | 25 years |  | LIBOR plus 3.00 % |  |
DoubleTree by Hilton Raleigh Brownstone University (6) |  |  | 14,431,982 |  |  |  | 14,503,925 |  |  | n/a |  | 8/1/2018 |  | 30 years |  | 4.78% |  |
DoubleTree Resort by Hilton Hollywood Beach (7) |  |  | 57,778,507 |  |  |  | 58,023,567 |  |  | n/a |  | 10/1/2025 |  | 30 years |  | 4.913% |  |
Georgian Terrace (8) |  |  | 44,821,844 |  |  |  | 45,032,662 |  |  | n/a |  | 6/1/2025 |  | 30 years |  | 4.42% |  |
Hotel Ballast (9) |  |  | 34,839,139 |  |  |  | 30,000,000 |  |  | Yes |  | 1/1/2027 |  | 25 years |  | 4.25% |  |
Hyatt Centric Arlington - Note A (10) |  |  | 49,921,350 |  |  |  | — |  |  | None |  | 3/1/2021 |  | n/a |  | LIBOR plus 3.00 % |  |
Hyatt Centric Arlington - Note B (11) |  |  | 6,900,000 |  |  |  | — |  |  | None |  | 3/1/2019 |  | n/a |  | LIBOR plus 5.00 % |  |
Sheraton Louisville Riverside (12) |  |  | 11,631,167 |  |  |  | 11,701,930 |  |  | Yes |  | 12/1/2026 |  | 25 years |  | 4.27% |  |
The Whitehall (13) |  |  | 14,961,530 |  |  |  | 15,000,000 |  |  | Yes |  | 2/26/2023 |  | 25 years |  | LIBOR plus 3.50 % |  |
Total Mortgage Principal Balance |  | $ | 359,402,460 |  |  | $ | 299,051,772 |  |  |  |  |  |  |  |  |  |  |  |
Deferred financing costs, net |  |  | (2,416,404 | ) |  |  | (1,923,928 | ) |  |  |  |  |  |  |  |  |  |  |
Unamortized premium on loan |  |  | 184,803 |  |  |  | 190,972 |  |  |  |  |  |  |  |  |  |  |  |
Total Mortgage Loans, Net |  | $ | 357,170,859 |  |  | $ | 297,318,816 |  |  |  |  |  |  |  |  |  |  |  |
(1) | The note provides initial proceeds of $15.7 million, with an additional $3.3 million available upon the satisfaction of certain conditions; bears a floating interest rate of 1-month LIBOR plus 3.75% subject to a floor rate of 3.75%; with monthly principal payments of $23,100; the note provides that the mortgage can be extended for two additional periods of one year each, subject to certain conditions. On April 5, 2018, we drew down an additional $3.3 million of loan proceeds in accordance with the terms of the note.
(2) | The note provides initial proceeds of $30.0 million, with an additional $5.0 million available upon the satisfaction of certain conditions, namely, the completion of a renovation project; amortizes on a 25-year schedule after a 1-year interest-only period; and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date.
(3) | The note may not be prepaid until August 2019, after which it is subject to a pre-payment penalty until March 2024. Prepayment can be made without penalty thereafter.
(4) | The note is subject to a pre-payment penalty except for any pre-payments made either between April 2017 and August 2017, or from April 2021 through maturity of the note.
(5) | The note bears a minimum interest rate of 3.50%.
(6) | With limited exception, the note may not be prepaid until two months before maturity.
(7) | With limited exception, the note may not be prepaid until June 2025.
(8) | With limited exception, the note may not be prepaid until February 2025.
(9) | The note provided initial proceeds of $30.0 million and additional proceeds of $5.0 million which were received following the substantial completion of the renovation project in February 2018; amortizes on a 25-year schedule after a 1-year interest-only period; and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date.
(10) | The note has a term of 3 years, with two 1-year extension options, each of which are subject to certain criteria. The note requires monthly principal payments of $78,650.
(11) | The note has a term of 1 year, with two 1-year extension options, each of which are subject to certain criteria. The note requires monthly principal payments of $100,000 during the initial 1-year term, $150,000 during the first 1- year extended term, and $250,000 during the second 1-year extended term, with interest payments due monthly on the outstanding principal amount during all three terms.
(12) | The note bears a fixed interest rate of 4.27% for the first 5 years of the loan, with an option for the lender to reset the interest rate after 5 years.
(13) | The note was amended in February 2018 to extend the maturity date until February 26, 2023. The amended note has an initial principal balance of $15.0 million, with no additional proceeds available; bears a floating interest rate of the 1-month LIBOR plus 3.5%, subject to a floor rate of 4.0% and is subject to prepayment penalties subject to a declining scale from 3.0% penalty on or before the first anniversary date, a 2.0% penalty during the second anniversary year and a 1.0% penalty after the third anniversary date.
As of March 31, 2018, we were in compliance with all debt covenants, current on all loan payments and not otherwise in default under any of our mortgage loans, with the exception of Note B to the Hyatt Centric Arlington mortgage. At March 31, 2018, we failed to meet the Debt Service Coverage Ratio (“DSCR”) covenant for the Hyatt Centric Arlington mortgage. The loan agreement contains a balancing provision that allows us to pay down the principal balance of the loan to meet the DSCR covenant, and we are currently in compliance with the DSCR covenant after making an additional principal payment of approximately $4.0 million on May 10, 2018. Total future mortgage debt maturities, without respect to any extension of loan maturity, as of March 31, 2018 were as follows:
For the remaining nine months ending: December 31, 2018 |  | $ | 23,130,768 |
December 31, 2019 |  |  | 57,267,675 |
December 31, 2020 |  |  | 7,255,127 |
December 31, 2021 |  |  | 71,686,191 |
December 31, 2022 |  |  | 5,047,909 |
December 31, 2023 and thereafter |  |  | 195,014,790 |
Total future maturities |  | $ | 359,402,460 |
7.25% Unsecured Notes. On February 12. 2018, the Operating Partnership issued its 7.25% Notes in the aggregate amount of $25.0 million, unconditionally guaranteed by the Company. The indenture requires quarterly payments of interest and matures on February 15, 2021. The 7.25% Notes are callable after February 15, 2019 at 101% of face value.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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