Mortgages and Other Loans Payable |
Mortgages and Other Loans Payable The first mortgages and other loans payable collateralized by the respective properties and assignment of leases or debt investments at June 30, 2017 and December 31, 2016, respectively, were as follows (amounts in thousands): | | | | | | | | | | | | | | | Property | | Maturity Date | | Interest Rate (1) | | June 30, 2017 | | December 31, 2016 | Fixed Rate Debt: | | | | | | | | | Unsecured Loan | | June 2018 | | 4.81 | % | | $ | 16,000 |
| | $ | 16,000 |
| One Madison Avenue | | May 2020 | | 5.91 | % | | 502,175 |
| | 517,806 |
| 762 Madison Avenue | | February 2022 | | 5.00 | % | | 771 |
| | 7,694 |
| 100 Church Street | | July 2022 | | 4.68 | % | | 219,190 |
| | 221,446 |
| 919 Third Avenue (2) | | June 2023 | | 5.12 | % | | 500,000 |
| | 500,000 |
| 420 Lexington Avenue | | October 2024 | | 3.99 | % | | 300,000 |
| | 300,000 |
| 1515 Broadway | | March 2025 | | 3.93 | % | | 880,562 |
| | 888,531 |
| 400 East 58th Street (3) | | November 2026 | | 3.00 | % | | 40,000 |
| | 40,000 |
| Landmark Square | | January 2027 | | 4.90 | % | | 100,000 |
| | 100,000 |
| 485 Lexington Avenue | | February 2027 | | 4.25 | % | | 450,000 |
| | 450,000 |
| 1080 Amsterdam (4) | | February 2027 | | 3.58 | % | | 36,363 |
| | — |
| 315 West 33rd Street | | February 2027 | | 4.17 | % | | 250,000 |
| | — |
| Series J Preferred Units (5) | | April 2051 | | 3.75 | % | | 4,000 |
| | 4,000 |
| 885 Third Avenue (6) | | | |
| | — |
| | 267,650 |
| FHLBNY Facility (7) | | | | | | — |
| | 105,000 |
| FHLBNY Facility (7) | | | | | | — |
| | 100,000 |
| Total fixed rate debt | | | | | | $ | 3,299,061 |
| | $ | 3,518,127 |
| Floating Rate Debt: | | | | | | | | | 719 Seventh Avenue | | February 2018 | | 4.06 | % | | $ | 40,718 |
| | $ | 37,388 |
| 183, 187 Broadway & 5-7 Dey Street | | May 2018 | | 3.70 | % | | 58,000 |
| | 58,000 |
| 2016 Master Repurchase Agreement | | July 2018 | | 3.51 | % | | 184,642 |
| | 184,642 |
| 220 East 42nd Street | | October 2020 | | 2.61 | % | | 275,000 |
| | 275,000 |
| One Vanderbilt Avenue (8) | | | |
|
| | — |
| | 64,030 |
| 1080 Amsterdam (9) | | | |
|
| | — |
| | 3,525 |
| Total floating rate debt | | | | | | $ | 558,360 |
| | $ | 622,585 |
| Total fixed rate and floating rate debt | | | | | | $ | 3,857,421 |
| | $ | 4,140,712 |
| Mortgages reclassed to liabilities related to assets held for sale | | | | | | — |
| | — |
| Total mortgages and other loans payable | | | | | | $ | 3,857,421 |
| | $ | 4,140,712 |
| Deferred financing costs, net of amortization | | | | | | (43,445 | ) | | (66,882 | ) | Total mortgages and other loans payable, net | | | | | | $ | 3,813,976 |
| | $ | 4,073,830 |
|
| | (1) | Effective weighted average interest rate for the quarter ended June 30, 2017, taking into account interest rate hedges in effect during the period. |
| | (2) | We own a 51.0% controlling interest in the consolidated joint venture that is the borrower on this loan. |
| | (3) | The loan carries a fixed interest rate of 3.00% for the first 5 years and is prepayable without penalty in year 5. |
| | (4) | The loan is comprised of a $35.5 million mortgage loan and $0.9 million subordinate loan with a fixed interest rate of 3.50% and 7.00%, respectively, for the first 5 years and is prepayable without penalty in year 5. |
| | (5) | In connection with the acquisition of a commercial real estate property, the Operating Partnership issued $4.0 million, 3.75% Series J Preferred Units of limited partnership interest, or the Series J Preferred Units, with a mandatory liquidation preference of $1,000 per unit. The Series J Preferred Units are accounted for as debt because they can be redeemed in cash by the Operating Partnership on the earlier of (i) the date of the sale of the property or (ii) April 30, 2051 or at the option of the unitholders as provided for in the related agreement. |
| | (6) | In February 2016, we closed on the sale of 885 Third Avenue. The sale did not meet the criteria for sale accounting at that time. In April 2017, the mortgage was refinanced by the buyer, resulting in the Company deconsolidating the property from its financial statements in the second quarter of 2017. |
| | (7) | The facility was repaid in January 2017. |
| | (8) | In September 2016, we closed on a $1.5 billion construction facility in connection with the development of One Vanderbilt Avenue. In January 2017, we admitted two partners, National Pension Service of Korea and Hines Interest LP, into the One Vanderbilt Avenue development project. In April 2017, the criteria for deconsolidation were met, and the development is shown within investments in unconsolidated joint ventures. See Note 6, "Investments in Unconsolidated Joint Ventures". |
| | (9) | In January 2017, this loan was refinanced with a fixed rate loan as shown above. |
At June 30, 2017 and December 31, 2016, the gross book value of the properties and debt and preferred equity investments collateralizing the mortgages and other loans payable, not including assets held for sale, was approximately $6.6 billion and $6.0 billion, respectively. Federal Home Loan Bank of New York Facility The Company’s wholly-owned subsidiary, Belmont Insurance Company, or Belmont, a New York licensed captive insurance company, was a member of the Federal Home Loan Bank of New York, or FHLBNY. In January 2017, all funds borrowed from the FHLBNY were repaid and Belmont's membership was terminated in February 2017. Master Repurchase Agreements The Company has entered into two Master Repurchase Agreements, or MRAs, known as the 2016 MRA and 2017 MRA, which provide us with the ability to sell certain debt investments with a simultaneous agreement to repurchase the same at a certain date or on demand. We seek to mitigate risks associated with our repurchase agreement by managing the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facilities permit valuation adjustments based on capital markets activity, and are not limited to collateral-specific credit marks. To monitor credit risk associated with our debt investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to recollateralize the facility with additional assets from our portfolio of debt investments, our ability to satisfy margin calls with cash or cash equivalents and our access to additional liquidity through the 2012 credit facility, as defined below. In June 2017, we entered into the 2017 MRA, with a maximum facility capacity of $300.0 million. The facility bears interest on a floating rate basis at a spread to 30-day LIBOR based on the pledged collateral and advance rate and has an initial one year term, with two one year extension options. At June 30, 2017, the facility had a carrying value of $(1.3) million, representing deferred financing costs presented within other liabilities. In July 2016, we entered into a restated 2016 MRA, with a maximum facility capacity of $300.0 million. The facility bears interest ranging from 225 and 400 basis points over 30-day LIBOR depending on the pledged collateral and has an initial two-year term, with a one year extension option. Since December 6, 2015, we have been required to pay monthly in arrears a 25 basis point fee on the excess of $150.0 million over the average daily balance during the period when the average daily balance is less than $150.0 million.
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