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Debt
12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt
6. Debt
On January 5, 2023, the Company transitioned the borrowing rate of its unsecured credit facility (the “Unsecured Credit Facility”) and $50 million term loan from LIBOR to daily-simple SOFR. The Company applied the practical expedients available under the reference rate reform guidance and accounted for the modifications as continuations of the existing
contracts.
The following table summarizes the outstanding indebtedness as of December 31, 2023 and 2022 (dollars in thousands), including the impact of the effective interest rate swaps described in Note 7:


Property
 
December 31, 2023
 
 
December 31, 2022
 
 
Interest Rate as of
December 31, 2023
 
 
Maturity
 
Unsecured Credit Facility
(2)(4)
  $ 200,000     $ 200,500       SOFR +1.50 %
(1)(2)
 
    November 2025  
Term Loan
(3)
    50,000       50,000       SOFR +1.35 %
(1)(3)
 
    September 2024  
Term Loan
(4)
    25,000       —        6.00 %
(4)
 
    January 2026  
Mission City
    45,994       46,859       3.78     November 2027  
Canyon Park
(5)
    38,932       39,673       4.30     March 2027  
Circle Point
    38,789       39,440       4.49     September 2028  
SanTan
(6)
    31,501       32,140       4.56     March 2027  
Intellicenter
    30,682       31,297       4.65     October 2025  
The Quad
    30,600       30,600       4.20     September 2028  
2525 McKinnon
    27,000       27,000       4.24     April 2027  
FRP Collection
(7)
    26,139       26,784       7.05 %
(7)
 
    August 2028  
Greenwood Blvd
    20,856       21,396       3.15     December 2025  
Cascade Station
(8)
    20,752       21,192       4.55     May 2024  
5090 N. 40th St
    20,370       20,810       3.92     January 2027  
AmberGlen
    20,000       20,000       3.69     May 2027  
FRP Ingenuity Drive
(9)
    15,860       16,165       4.44     December 2024  
Central Fairwinds
    15,826       16,273       3.15     June 2024  
Carillon Point
(7)
    14,419       14,773       7.05 %
(7)
 
    August 2028  
190 Office Center
(10)
    —        38,894       —        —   
   
 
 
   
 
 
                 
Total Principal
    672,720       693,796                  
Deferred financing costs, net
    (3,258     (3,887                
Unamortized fair value
 
adjustments
    48       190                  
   
 
 
   
 
 
                 
Total
  $ 669,510     $ 690,099                  
   
 
 
   
 
 
                 

  (1)
As of December 31, 2023, the daily-simple SOFR rate was 5.38%.
 
(2)
Borrowings under the Unsecured Credit Facility bear interest at a rate equal to the daily-simple SOFR rate plus a margin of between 135 to 235 basis points depending upon the Company’s consolidated leverage ratio. On February 9, 2023, the Company entered into a three-year interest rate swap for a notional amount of $140 million, effective March 8, 2023, effectively fixing the SOFR
   
component of the borrowing rate for $140 million of the Unsecured Credit Facility at 4.19%. As of December 31, 2023, the Unsecured Credit Facility had $200.0 million drawn and a $4.2 million letter of credit to satisfy escrow requirements for a mortgage lender. The Unsecured Credit Facility matures in November 2025 and may be extended 12 months at the Company’s option upon meeting certain conditions. The Unsecured Credit Facility requires the Company to maintain a fixed charge coverage ratio of no less than 1.50x.
  (3)
Borrowings under the $50 million term loan bear interest at a rate equal to the daily-simple SOFR rate plus a margin of between 135 to 225 basis points depending upon the Company’s consolidated leverage ratio. The SOFR component of the borrowing rate is effectively fixed
for the remainder of the five-year term 
by a $50 million interest rate swap at 1.17%.
  (4)
On January 5, 2023, the Company entered into a second amendment to its
amended and restated credit agreement
, dated November 16, 2021 for the Unsecured Credit Facility and entered into a three-year $
25
 million term loan, increasing its total authorized borrowings from $
350
 million to $
375
 million. Borrowings under the $
25
 million term loan bear interest at a rate equal to the daily-simple SOFR rate plus a margin of
210
basis points. In conjunction with the term loan, the Company also entered into a three-year interest rate swap for a notional amount of $
25
 million, effectively fixing the SOFR component of the borrowing rate of the term loan at
3.90
%.
  (5)
The mortgage loan anticipated repayment date (“ARD”) is March 1, 2027. The final scheduled maturity date can be extended up to 5 years beyond the ARD. If the loan is not paid off at ARD, the loan’s interest rate shall be adjusted to the greater of (i) the initial interest rate plus 200 basis points or (ii) the yield on the five year “on the run” treasury reported by Bloomberg market data service plus 450 basis points.
  (6)
In the second quarter of 2023, the Debt Service Coverage Ratio (“DSCR”) and debt yield covenants for SanTan were not met, which triggered a ‘cash-sweep period’ that began in the second quarter of 2023. As of December 31, 2023, the DSCR and debt yield covenants were still not met. As of
December 
31, 2023, total restricted cash for the property was $4.1 million.
 
(7)
On August 16, 2023, the Company entered into two amended and restated loan agreements for FRP Collection and Carillon Point, which among other things, extended the term for an additional five years and amended the interest rates from fixed to floating. The loans bear interest at a rate equal to the daily-simple SOFR rate plus a margin of 275 basis points. In conjunction with the amended and restated loan agreements, the Company also entered into two five-year interest rate swap agreements, effectively fixing the SOFR component of the borrowing rate of the loans at 4.30%.
  (8)
In the first quarter of 2023, a ‘cash-sweep period’ began for the Cascade Station loan due to the
non-renewal
of a major tenant’s leased space in the building. As of December 31, 2023, total restricted cash for the property was $2.0 million.
  (9)
In the third quarter of 2022, the DSCR covenant for FRP Ingenuity Drive was not met, which triggered a ‘cash-sweep period’ that began in the fourth quarter of 2022. As of December 31, 2023, the DSCR was still not met. As of December 31, 2023 and December 31, 2022, total restricted cash for the property was $3.2 million and $2.6 million, respectively.
  (10)
In the second quarter of 2023, the non-recourse debt associated with the 190 Office Center property was deconsolidated as a result of the appointment of a receiver to assume possession and control of the property. The loan balance as of the date of deconsolidation was
$38.6 
million. 
The scheduled principal repayments of mortgage payable as of December 31, 2023 are as follows (in thousands):
 
 
 
 
 
 
2024
   $ 107,675  
2025
     254,697  
2026
     29,563  
2027
     176,477  
2028
     104,308  
Thereafter
     —   
    
 
 
 
     $ 672,720