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Borrowings
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
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.