Debt Obligations

3 Months Ended

Mar. 31, 2021

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


	March 31, 2021		December 31, 2020
Mortgages payable	$	130,196	$	130,997
Junior subordinated notes	37,400		37,400

Deferred financing costs	(810)		(880)
Total debt obligations, net of deferred costs	$	166,786	$	167,517

Mortgages Payable

The weighted average interest rate on the Company's mortgages payable at March 31, 2021 was 4.15% and the weighted average remaining term to maturity is 4.13 years. For the three months ended March 31, 2021 and 2020 interest expense, which includes amortization of deferred financing costs, was $1,429,000 and $1,475,000, respectively.

Credit Facility

The Company's credit facility with an affiliate of Valley National Bank, as amended and modified from time-to-time, allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $15,000,000 to facilitate the acquisition of multi-family properties and for working capital (including dividend payments) and operating expenses. The facility is secured by the cash available in certain cash accounts maintained by the Company at Valley National Bank, matures April 2023 and bears an adjustable interest rate of 50 basis points over the prime rate, with a floor of 4.25%. The interest rate in effect as of March 31, 2021 is 4.25%. For the three months ended March 31, 2021 and 2020, interest expense, which includes amortization of deferred financing costs and unused fees, was $17,000 and $15,000. Deferred financing costs of $2,000 and $12,000, are recorded in other assets on the Consolidated balance sheets at March 31, 2021 and December 31, 2020, respectively. 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. At March 31, 2021, the Company is in compliance in all material respects with its obligation under the facility. At March 31, 2021 and April 30, 2021, there was no outstanding balance on the facility.

Junior Subordinated Notes

At March 31, 2021 and December 31, 2020, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000, before deferred financing costs of $312,000 and $317,000, respectively. The interest rate on the outstanding balance resets quarterly and is based on three months LIBOR + 2.00%. The rate in effect at March 31, 2021 and 2020 was or 2.21% and 3.77%, respectively. The notes mature April 30, 2036.

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, 2021 and 2020, which includes amortization of deferred financing costs, was $214,000 and $370,000, respectively.