Borrowings |
Borrowings The following table presents the Company’s borrowings as of September 30, 2019 and December 31, 2018 (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2019 (Unaudited) | | December 31, 2018 | | 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% | | $ | — |
| | $ | — |
| | $ | 16,545 |
| | $ | 16,277 |
| Watermark Aqua Portfolio | | | | | | | | | | | | | | Denver, CO | Non-recourse | | Feb-21 | | LIBOR + 2.92% | | 20,635 |
| | 20,576 |
| | 20,866 |
| | 20,774 |
| Frisco, TX | Non-recourse | | Mar-21 | | LIBOR + 3.04% | | 19,250 |
| | 19,197 |
| | 19,460 |
| | 19,377 |
| Milford, OH | Non-recourse | | Sep-26 | | LIBOR + 2.68% | | 18,760 |
| | 18,339 |
| | 18,760 |
| | 18,288 |
| Rochester Portfolio | | | | | | | | | | | | | | Rochester, NY | Non-recourse | | Feb-25 | | 4.25% | | 20,385 |
| | 20,282 |
| | 20,849 |
| | 20,734 |
| Rochester, NY(4) | Non-recourse | | Aug-27 | | LIBOR + 2.34% | | 101,224 |
| | 100,239 |
| | 101,224 |
| | 100,162 |
| Rochester, NY(5) | Non-recourse | | Aug-21 | | LIBOR + 2.90% | | 12,800 |
| | 12,147 |
| | — |
| | — |
| Arbors Portfolio(6) | | | | | | | | | | | | | | Various locations | Non-recourse | | Feb-25 | | 3.99% | | 89,465 |
| | 88,403 |
| | 90,751 |
| | 89,508 |
| Watermark Fountains Portfolio(7) | | | | | | | | | | | | | Various locations | Non-recourse | | Jun-22 | | 3.92% | | 394,059 |
| | 392,101 |
| | 399,023 |
| | 396,421 |
| Various locations | Non-recourse | | Jun-22 | | 5.56% | | 74,455 |
| | 73,945 |
| | 75,401 |
| | 74,776 |
| Winterfell Portfolio(8) | | | | | | | | | | | | | | Various locations | Non-recourse | | Jun-25 | | 4.17% | | 634,818 |
| | 616,448 |
| | 642,954 |
| | 622,329 |
| Avamere Portfolio(9) | | | | | | | | | | | | | | Various locations | Non-recourse | | Feb-27 | | 4.66% | | 71,733 |
| | 71,172 |
| | 72,466 |
| | 71,848 |
| Subtotal mortgage notes payable, net | | | | | | $ | 1,457,584 |
|
| $ | 1,432,849 |
|
| $ | 1,478,299 |
|
| $ | 1,450,494 |
| Other notes payable | | | | | | | | | | | | | | Oak Cottage | | | | | | | | | | | | | | Santa Barbara, CA | Non-recourse | | Feb-22 | | 6.00% | | 3,693 |
| | 3,693 |
| | 3,500 |
| | 3,500 |
| Rochester Portfolio | | | | | | | | | | | | | | Rochester, NY(5) | Non-recourse | | Aug-19 | | 6.00% | | — |
| | — |
| | 12,355 |
| | 12,355 |
| Subtotal other notes payable, net | | | | | | $ | 3,693 |
| | $ | 3,693 |
| | $ | 15,855 |
| | $ | 15,855 |
| Total mortgage and other notes payable, net | | | | | | $ | 1,461,277 |
| | $ | 1,436,542 |
| | $ | 1,494,154 |
| | $ | 1,466,349 |
|
_______________________________________ | | (1) | Floating rate borrowings are comprised of $172.7 million principal amount at one-month London Interbank Offered Rate (“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) | Mortgage note arrangement was secured and collateralized by three healthcare real estate properties and was repaid in May 2019. |
| | (4) | Comprised of seven individual mortgage notes payable secured by seven healthcare real estate properties, cross-collateralized and subject to cross-default. |
| | (5) | In July 2019, an existing $12.4 million seller note payable secured by one healthcare real estate property was refinanced with a $12.8 million mortgage note payable. |
| | (6) | Comprised of four individual mortgage notes payable secured by four healthcare real estate properties, cross-collateralized and subject to cross-default. |
| | (7) | Includes $394.1 million principal amount of fixed rate borrowings, secured by 14 healthcare real estate properties, cross-collateralized and subject to cross-default as well as a supplemental financing totaling $74.5 million of principal, secured by seven healthcare real estate properties, cross-collateralized and subject to cross-default. |
| | (8) | Comprised of 32 individual mortgage notes payable secured by 32 healthcare real estate properties, cross-collateralized and subject to cross-default. |
| | (9) | Comprised of five individual mortgage notes payable secured by five healthcare real estate properties, cross-collateralized and subject to cross-default. |
The following table presents scheduled principal payments on borrowings based on final maturity as of September 30, 2019 (dollars in thousands): | | | | | | October 1 to December 31, 2019 | | $ | 5,765 |
| Years Ending December 31: | | | 2020 | | 23,760 |
| 2021 | | 76,253 |
| 2022 | | 466,622 |
| 2023 | | 18,820 |
| Thereafter | | 870,057 |
| Total | | $ | 1,461,277 |
|
As of September 30, 2019, the operating performance of a property within the Company’s Rochester portfolio did not maintain certain minimum financial coverage ratios required under the contractual terms of its mortgage note, which resulted in a default. The Company is currently in discussions with the lender to cure or otherwise waive the default. Colony Capital Line of Credit In October 2017, the Company obtained a revolving line of credit from an affiliate of Colony Capital, the Sponsor, for up to $15.0 million at an interest rate of 3.5% plus LIBOR (the “Sponsor Line”). The Sponsor Line had an initial one year term, with an extension option of six months. In November 2017, the borrowing capacity under the Sponsor Line was increased to $35.0 million. During 2017, the Company had drawn and fully repaid $25.0 million under the Sponsor Line. In March 2018, the Sponsor Line maturity was extended through December 2020 and in May 2019, the maturity date was further extended through December 2021. The Company did not utilize the Sponsor Line during the nine months ended September 30, 2019. Corporate Credit Facility In December 2017, the Company executed a corporate credit facility with Key Bank (the “Corporate Facility”), for up to $25.0 million. The Corporate Facility had a three year term at interest rates ranging between 2.5% and 3.5% plus LIBOR and was not utilized. In April 2019, the Company terminated the Corporate Facility.
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