Borrowings |
Borrowings The following table presents the Company’s borrowings as of September 30, 2017 and December 31, 2016 (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2017 (Unaudited) | | December 31, 2016 | | Recourse vs. Non-Recourse | | Final Maturity | | Contractual Interest Rate(1) | | Principal Amount(2) | | Carrying Value(2) | | Principal Amount(2) | | Carrying Value(2) | Mortgage notes payable, net | | | | | | | | | | | | | | Peregrine Portfolio(3) | | | | | | | | | | | | | | Various locations | Non-recourse | | Dec-19 | | LIBOR + 3.50% | | $ | 23,577 |
| | $ | 23,233 |
| | $ | 24,000 |
| | $ | 23,528 |
| Watermark Aqua Portfolio | | | | | | | | | | | | | | Denver, CO | Non-recourse | | Feb-21 | | LIBOR + 2.92% | | 21,283 |
| | 21,130 |
| | 21,500 |
| | 21,309 |
| Frisco, TX | Non-recourse | | Mar-21 | | LIBOR + 3.04% | | 19,837 |
| | 19,701 |
| | 20,000 |
| | 19,830 |
| Milford, OH | Non-recourse | | Sep-26 | | LIBOR + 2.68% | | 18,760 |
| | 18,198 |
| | 18,760 |
| | 18,142 |
| Rochester Portfolio | | | | | | | | | | | | | | Rochester, NY | Non-recourse | | Feb-25 | | 4.25% | | 21,589 |
| | 21,455 |
| | — |
| | — |
| Rochester, NY(4) | Non-recourse | | Aug-27 | | LIBOR + 2.34% | | 101,224 |
| | 100,036 |
| | — |
| | — |
| Arbors Portfolio(5) | | | | | | | | | | | | | | Various locations | Non-recourse | | Feb-25 | | 3.99% | | 92,814 |
| | 91,255 |
| | 93,750 |
| | 91,992 |
| Watermark Fountains Portfolio(6) | | | | | | | | | | | | | Various locations | Non-recourse | | Jun-22 | | 3.92% | | 410,000 |
| | 406,253 |
| | 410,000 |
| | 405,564 |
| Winterfell Portfolio(7) | | | | | | | | | | | | | | Various locations | Non-recourse | | Jun-25 | | 4.17% | | 648,211 |
| | 623,943 |
| | 648,211 |
| | 620,617 |
| Bonaventure Portfolio(8) | | | | | | | | | | | | | | Various locations | Non-recourse | | Feb-27 | | 4.66% | | 72,466 |
| | 71,752 |
| | — |
| | — |
| Subtotal mortgage notes payable, net | | | | | | 1,429,761 |
|
| 1,396,956 |
|
| 1,236,221 |
|
| 1,200,982 |
| Other notes payable | | | | | | | | | | | | | | Oak Cottage | | | | | | | | | | | | | | Santa Barbara, CA | Non-recourse | | Feb-22 | | 6.00% | | 3,500 |
| | 3,500 |
| | — |
| | — |
| Total mortgage and other notes payable, net | | | | | | $ | 1,433,261 |
| | $ | 1,400,456 |
| | $ | 1,236,221 |
| | $ | 1,200,982 |
|
_______________________________________ | | (1) | Floating rate borrowings are comprised of $161.1 million principal amount at one-month London Interbank Offered Rate (“LIBOR”) and $23.6 million principal amount at three-month LIBOR. |
| | (2) | The difference between principal amount and carrying value of mortgage notes payable is attributable to deferred financing costs, net for all borrowings other than the Winterfell portfolio which is attributable to below market debt intangibles. |
| | (3) | This mortgage note arrangement has a capacity of up to $30.0 million, subject to certain conditions, secured and collateralized by four healthcare real estate properties. As of September 30, 2017, the Company has funded approximately $7.1 million into a lender controlled reserve. |
| | (4) | Comprised of seven individual mortgage notes payable secured, cross collateralized and cross-defaulted by seven healthcare real estate properties. |
| | (5) | Comprised of four individual mortgage notes payable secured by four healthcare real estate properties, cross-collateralized and cross-defaulted. |
| | (6) | Comprised of $410.0 million principal amount of fixed rate borrowings, secured by 15 healthcare real estate properties, cross-collateralized and cross-defaulted. |
| | (7) | Comprised of 32 individual mortgage notes payable secured by 32 healthcare real estate properties, cross-collateralized and cross-defaulted. |
| | (8) | Comprised of five individual mortgage notes payable secured by five healthcare real estate properties, cross-collateralized and cross-defaulted. |
The following table presents scheduled principal payments on borrowings based on final maturity as of September 30, 2017 (dollars in thousands): | | | | | | | | | October 1 to December 31, 2017 | | $ | 885 |
| Years Ending December 31: | | | 2018 | | 10,632 |
| 2019 | | 44,850 |
| 2020 | | 23,058 |
| 2021 | | 62,210 |
| Thereafter | | 1,291,626 |
| Total | | $ | 1,433,261 |
|
As of September 30, 2017, the Company’s Peregrine portfolio did not maintain certain minimum financial coverage ratios required under the contractual terms of its mortgage note, which resulted in a non-monetary default. The Company is currently in discussions with the lender to restructure the loan to cure or otherwise waive the default.
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