Note 5 — Mortgage Note Payable

The Company's mortgage note payable as of June 30, 2016 and December 31, 2015 is as follows:



		Outstanding Loan Amount
Portfolio	Encumbered Properties	June 30, 2016			December 31, 2015			Effective Interest Rate			Interest Rate	Maturity
		(In thousands)			(In thousands)
123 William Street⁽¹⁾	1	$	96,000		$	96,000		2.75	%	⁽²⁾	Variable	Mar. 2017	⁽³⁾
1140 Avenue of the Americas	1	99,000			—			4.17	%		Fixed	July 2026
Less: deferred financing costs, net		(4,996		)	(2,824		)
Mortgage note payable, net of deferred financing costs	2	$	190,004		$	93,176		3.56	%

_____________________


(1)	The Company may borrow up to $110.0 million subject to compliance with certain provisions as described in the terms of the mortgage agreement.


(2)	Interest rate is one month LIBOR, which was 0.459% at June 30, 2016, plus a margin of 2.25%, based on a 360 day year.


(3)	The Company has a one-time option to extend the maturity date by one year.

Real estate assets of $443.1 million, at cost (net of below-market lease liabilities), at June 30, 2016 have been pledged as collateral to the Company's mortgage note payable and are not available to satisfy the Company's other obligations unless first satisfying the mortgage note payable on the property. The Company makes payments of interest on its mortgage note payable on a monthly basis.

The following table summarizes the scheduled aggregate principal payments subsequent to June 30, 2016:



(In thousands)	Future Minimum Principal Payments
July 1, 2016 - December 31, 2016	$	—
2017	96,000
2018	—
2019	—
2020	—
Thereafter	99,000
Total	$	195,000

The Company's mortgage note payable requires compliance with certain property-level debt covenants. As of June 30, 2016, the Company was in compliance with the debt covenants under its mortgage note agreement.