Mortgage Notes Payable, Net (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

The Company’s mortgage notes payable, net as of September 30, 2020 and December 31, 2019 are as follows:

		Outstanding Loan Amount
Portfolio	Encumbered Properties	September 30, 2020		December 31, 2019		Effective Interest Rate		Interest Rate		Maturity
		(In thousands)		(In thousands)
123 William Street (1)	1	$	140,000	$	140,000	4.74	%	Fixed		Mar. 2027
1140 Avenue of the Americas	1	99,000		99,000		4.18	%	Fixed		Jul. 2026
400 E. 67th Street - Laurel Condominium / 200 Riverside Boulevard - ICON Garage	2	50,000		50,000		4.59	%	Fixed		May 2028
8713 Fifth Avenue	1	10,000		10,000		5.05	%	Fixed		Nov. 2028
9 Times Square	1	55,000		55,000		3.73	%	Fixed	(2)	Apr. 2024
196 Orchard Street	1	51,000		51,000		3.91	%	Fixed		Aug. 2029
Mortgage notes payable, gross	7	405,000		405,000		4.35	%
Less: deferred financing costs, net (3)		(8,812)		(9,969)
Mortgage notes payable, net		$	396,188	$	395,031

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(1)As of September 30, 2020, $2.5 million was in escrow in accordance with the conditions under the loan agreement and presented as part of restricted cash on the unaudited consolidated balance sheet. The escrow amount will be released to fund leasing activity, tenant improvements and leasing commissions related to this property.

(2)Fixed as a result of the Company having entered into a “pay-fixed” interest rate swap agreement, which is included in derivatives, at fair value on the consolidated balance sheet as of September 30, 2020 (see Note 6 — Derivatives and Hedging Activities).

(3)Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.

Schedule of maturities of long-term debt

The following table summarizes the scheduled aggregate principal payments subsequent to September 30, 2020:

(In thousands)	Future Minimum Principal Payments
2020 (remainder)	$	—
2021	—
2022	—
2023	—
2024	55,000
Thereafter	350,000
Total	$	405,000