Debt Obligations

3 Months Ended

Dec. 31, 2018

Debt obligations consist of the following (dollars in thousands):


	December 31, 2018		September 30, 2018
Mortgages payable	$	778,106	$	798,805
Junior subordinated notes	37,400		37,400
Deferred mortgage costs	(6,646)		(6,735)
Total debt obligations, net of deferred costs	$	808,860	$	829,470

Mortgages Payable

During the three months ended December 31, 2018, the Company obtained the following mortgage debt in connection with the related property acquisition (dollars in thousands):

Location

Closing Date

Acquisition Mortgage Debt

Interest Rate

Interest only period

Maturity Date

Greenville, SC

10/30/18

26,425

4.69

60 months

November 2028

The Company has a construction loan financing a development project. Information regarding this loan at December 31, 2018 is set forth below (dollars in thousand):

Location

Closing Date

Maximum Loan Amount

Amount outstanding

Interest Rate

Maturity Date

Extension Option

Nashville,TN

6/2/2017

47,426

29,272

LIBOR + 2.85%

6/2/2022

N/A

Junior Subordinated Notes

At December 31, 2018 and September 30, 2018, the Company's junior subordinated notes had an outstanding principal balance of $37,400,000, before deferred financing costs of $357,000 and $362,000, respectively. At December 31, 2018, the interest rate on the outstanding balance is three month LIBOR + 2.00% or 4.52%.

The junior subordinated notes require interest only payments through the maturity date of April 30, 2036, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for the three months ended December 31, 2018 and 2017, which includes amortization of deferred costs, was $424,000 and $330,000, respectively.