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Borrowings
9 Months Ended
Sep. 30, 2017
Debt Disclosure [Abstract]  
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.