Debt Obligations

3 Months Ended

Mar. 31, 2019

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


	March 31, 2019		December 31, 2018
Mortgages payable	$	814,829	$	778,106
Junior subordinated notes	37,400		37,400
Deferred mortgage costs	(6,452)		(6,646)
Total debt obligations, net of deferred costs	$	845,777	$	808,860

Mortgages Payable

During the three months ended March 31, 2019, the Company obtained the following mortgage debt in connection with the related property (dollars in thousands):

Location

Closing Date

Acquisition Mortgage Debt

Interest Rate

Maturity Date

Kannapolis, NC

3/12/19

33,347

3.52

3/01/52

The Company has a construction loan financing a development project. Information regarding this loan at March 31, 2019 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

35,085

30 day LIBOR + 2.85%

6/2/2022

N/A

On February 1, 2019, the Company refinanced a $9,200,000 adjustable rate mortgage on its Boerne, TX property with a fixed rate loan in the amount of $8,067,000. The mortgage debt bears interest at a fixed rate of 4.74%, matures in

February 2026, is interest only for three years, amortizes thereafter on a 30 year schedule, with a balloon payment of the unpaid principal and interest due at maturity.

Credit Facility

The Company entered into a credit facility dated April 18, 2019, as subsequently amended, with an affiliate of Valley National Bank. The facility allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $10,000,000 to facilitate the acquisition of multi-family properties, and is secured by the cash available in certain cash accounts maintained by the Company at Valley National Bank. The facility matures April 2021 and bears an adjustable interest rate of 50 basis points over the prime rate, with a floor 5%. The interest rate in effect as of May 2, 2019, is 6%. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and maximum amount then available under the facility. On May 2, 2019, the Company borrowed $9,000,000 on the facility in connection with the acquisition of the Trussville, AL property.

Junior Subordinated Notes

At March 31, 2019 and December 31, 2018, the Company's junior subordinated notes had an outstanding principal balance of $37,400,000, before deferred financing costs of $352,000 and $357,000, respectively. At March 31, 2019, the interest rate on the outstanding balance is three month LIBOR + 2.00% or 4.75%.

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 March 31, 2019 and 2018, which includes amortization of deferred costs, was $449,000 and $352,000, respectively.