Indebtedness

The following table discloses certain information regarding our indebtedness:



	Outstanding Balance at						Interest Rate at September 30, 2016	Effective Interest Rate at Issuance	Maturity Date
	September 30, 2016			December 31, 2015			Interest Rate at September 30, 2016	Effective Interest Rate at Issuance	Maturity Date
Mortgage Loans Payable, Gross	$	502,853		$	564,891		4.03% – 8.26%	3.82% – 8.26%	June 2018 – September 2022
Unamortized Deferred Financing Costs	(3,145		)	(3,714		)
Unamortized Premiums	468			64
Mortgage Loans Payable, Net	$	500,176		$	561,241
Senior Unsecured Notes, Gross
2016 Notes	$	—		$	159,679		N/A	N/A	1/15/2016
2017 Notes	54,981			54,981			7.50%	7.52%	12/1/2017
2027 Notes	6,070			6,070			7.15%	7.11%	5/15/2027
2028 Notes	31,901			31,901			7.60%	8.13%	7/15/2028
2032 Notes	10,600			10,600			7.75%	7.87%	4/15/2032
2017 II Notes	101,871			101,871			5.95%	6.37%	5/15/2017
Subtotal	$	205,423		$	365,102
Unamortized Deferred Financing Costs	(363		)	(499		)
Unamortized Discounts	(115		)	(146		)
Senior Unsecured Notes, Net	$	204,945		$	364,457
Unsecured Term Loans, Gross
2014 Unsecured Term Loan (A)	$	200,000		$	200,000		3.99%	N/A	1/29/2021
2015 Unsecured Term Loan (A)	260,000			260,000			3.39%	N/A	9/12/2022
Subtotal	$	460,000		$	460,000
Unamortized Deferred Financing Costs	(3,529		)	(4,030		)
Unsecured Term Loans, Net	$	456,471		$	455,970
Unsecured Credit Facility (B)	$	163,500		$	52,500		1.67%	N/A	3/11/2019

(A) The interest rate at September 30, 2016 reflects the interest rate protection agreements we entered into to effectively convert the variable rate to a fixed rate. See Note 10.

(B) The maturity date may be extended an additional year at our election, subject to certain restrictions. Amounts exclude unamortized deferred financing costs of $3,208 and $4,204 as of September 30, 2016 and December 31, 2015, respectively, which are included in prepaid expenses and other assets, net on the consolidated balance sheets.

Mortgage Loans Payable, Net

During the nine months ended September 30, 2016, we assumed a mortgage loan in the amount of $4,513 in conjunction with the acquisition of one industrial property, totaling approximately 0.1 million square feet of GLA. The mortgage loan bears interest at a fixed rate of 7.35%, principal payments are amortized over 25 years and the loan matures in September 2019. In conjunction with the assumption of the mortgage loan, we recorded a premium in the amount of $529, which will be amortized as an adjustment to interest expense through maturity.

Additionally, during the nine months ended September 30, 2016, we paid off a mortgage loan in the amount of $57,901.

As of September 30, 2016, mortgage loans payable are collateralized, and in some instances cross-collateralized, by industrial properties with a net carrying value of $666,033. We believe the Operating Partnership and the Company were in compliance with all covenants relating to mortgage loans as of September 30, 2016.

Senior Unsecured Notes, Net

During the nine months ended September 30, 2016, we paid off and retired our 2016 Notes (as described in the table above), at maturity, in the amount of $159,679.

Indebtedness

The following is a schedule of the stated maturities and scheduled principal payments of our indebtedness, exclusive of premiums, discounts and deferred financing costs, for the next five years as of September 30, and thereafter:



	Amount
Remainder of 2016	$	2,899
2017	168,849
2018	168,477
2019	244,061
2020	90,857
Thereafter	656,633
Total	$	1,331,776

The Unsecured Credit Facility, the Unsecured Term Loans (as defined in Note 10) and the indentures governing our senior unsecured notes contain certain financial covenants, including limitations on incurrence of debt and debt service coverage. Under the Unsecured Credit Facility and the Unsecured Term Loans, an event of default can occur if the lenders, in their good faith judgment, determine that a material adverse change has occurred which could prevent timely repayment or materially impair our ability to perform our obligations under the loan agreements. We believe that the Operating Partnership and the Company were in compliance with all covenants relating to the Unsecured Credit Facility, the Unsecured Term Loans and indentures governing our senior unsecured notes as of September 30, 2016. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our lenders and noteholders in a manner that could impose and cause us to incur material costs.

Fair Value

At September 30, 2016 and December 31, 2015, the fair value of our indebtedness was as follows:



	September 30, 2016				December 31, 2015
	Carrying Amount (A)		Fair Value		Carrying Amount (A)		Fair Value
Mortgage Loans Payable, Net	$	503,321	$	531,215	$	564,955	$	595,964
Senior Unsecured Notes, Net	205,308		228,527		364,956		386,253
Unsecured Term Loans	460,000		458,541		460,000		460,970
Unsecured Credit Facility	163,500		163,500		52,500		52,500
Total	$	1,332,129	$	1,381,783	$	1,442,411	$	1,495,687

(A) The carrying amounts include unamortized premiums and discounts and exclude unamortized deferred financing costs.

The fair values of our mortgage loans payable were determined by discounting the future cash flows using the current rates at which similar loans would be made based upon similar remaining maturities. The current market rates we utilized were internally estimated. The fair value of the senior unsecured notes were determined by using rates, as advised by our bankers, that are based upon recent trades within the same series of the senior unsecured notes, recent trades for senior unsecured notes with comparable maturities, recent trades for fixed rate unsecured notes from companies with profiles similar to ours, as well as overall economic conditions. The fair value of the Unsecured Credit Facility and the Unsecured Term Loans was determined by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term, assuming no repayment until maturity. We have concluded that our determination of fair value for each of our mortgage loans payable, senior unsecured notes, the Unsecured Term Loans and the Unsecured Credit Facility was primarily based upon Level 3 inputs.