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Notes Payable
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
NOTES PAYABLE NOTES PAYABLE
The following table summarizes the terms of notes payable outstanding at December 31, 2020 and 2019 (in thousands):
DescriptionInterest RateMaturity20202019
Unsecured Notes:
Credit Facility, Unsecured1.19%2023$232,400 $251,500 
Term Loan, Unsecured1.34%2021250,000 250,000 
2019 Senior Notes, Unsecured3.95%2029275,000 275,000 
2017 Senior Notes, Unsecured3.91%2025250,000 250,000 
2019 Senior Notes, Unsecured3.86%2028250,000 250,000 
2019 Senior Notes, Unsecured3.78%2027125,000 125,000 
2017 Senior Notes, Unsecured4.09%2027100,000 100,000 
1,482,400 1,501,500 
Secured Mortgage Notes:
Fifth Third Center 3.37%2026137,057 140,332 
Terminus 1005.25%2023114,997 118,146 
Colorado Tower 3.45%2026114,660 117,085 
Promenade 4.27%202292,593 95,986 
816 Congress 3.75%202478,232 79,987 
Terminus 2003.79%202374,354 76,079 
Legacy Union One4.24%202366,000 66,000 
Meridian Mark Plaza 6.00%2020— 22,978 
677,893 716,593 
   $2,160,293 $2,218,093 
Unamortized premium7,574 11,239 
Unamortized loan costs(5,148)(6,357)
Total Notes Payable$2,162,719 $2,222,975 
Weighted average maturity of notes payable outstanding at December 31, 2020 was 4.6 years.
Credit Facility
The Company has a $1 billion senior unsecured line of credit (the "Credit Facility") that matures on January 3, 2023. The Credit Facility contains financial covenants that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 1.75x; a fixed charge coverage ratio of at least 1.50x; a secured leverage ratio of no more than 40%; and an overall leverage ratio of no more than 60%. The Credit Facility also contains customary representations and warranties and affirmative and negative covenants, as well as customary events of default. The amounts outstanding under the Credit Facility may be accelerated upon the occurrence of any events of default. The Company is in compliance with all covenants of the Credit Facility.
The interest rate applicable to the Credit Facility varies according to the Company's leverage ratio, and may, at the election of the Company, be determined based on either (1) the current LIBOR plus a spread of between 1.05% and 1.45%, or (2) the greater of Bank of America's prime rate, the federal funds rate plus 0.50%, or the one-month LIBOR plus 1.0% (the "Base Rate"), plus a spread of between 0.10% or 0.45%, based on leverage.
At December 31, 2020, the Credit Facility's spread over LIBOR was 1.05%. The amount that the Company may draw under the Credit Facility is a defined calculation based on the Company's unencumbered assets and other factors. The total available borrowing capacity under the Credit Facility was $767.6 million at December 31, 2020.
Term Loan
The Company has a $250 million unsecured term loan (the "Term Loan") that matures on December 2, 2021. The Term Loan has financial covenants consistent with those of the Credit Facility. The interest rate applicable to the Term Loan varies according to the Company’s leverage ratio, and may, at the election of the Company, be determined based on either (1) the current LIBOR plus a spread of between 1.20% and 1.70%, based on leverage or (2) the greater of Bank of America's prime rate, the federal funds rate plus 0.50% or the one-month LIBOR plus 1.00% (the “Base Rate”), plus a spread of between 0.00% and 0.75%, based on leverage. At December 31, 2020, the Term Loan's spread over LIBOR was 1.20%. The Company is in compliance with all covenants of the Term Loan.
Unsecured Senior Notes
In 2019, the Company issued a $650 million private placement of unsecured senior notes, which were funded in three tranches. The first tranche of $125 million is due in 2027 and has a fixed annual interest rate of 3.78%. The second tranche of $250 million is due in 2028 and has a fixed annual interest rate of 3.86%. The third tranche of $275 million is due in 2029 and has a fixed annual interest rate of 3.95%.
In 2017, the Company issued a $350 million private placement, which were funded in two tranches. The first tranche of $100 million is due in 2027 and has a fixed annual interest rate of 4.09%. The second tranche of $250 million is due in 2025 and has a fixed annual interest rate of 3.91%.
The unsecured senior notes contain financial covenants that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 1.75x; a fixed charge coverage ratio of at least 1.50x; an overall leverage ratio of no more than 60%; and a secured leverage ratio of no more than 40%. The senior notes also contain customary representations and warranties and affirmative and negative covenants, as well as customary events of default. The Company is in compliance with all covenants of the unsecured senior notes.
Secured Mortgage Notes
In February 2020, the Company prepaid in full the $23.0 million Meridian Mark Plaza mortgage note, without penalty.
    As of December 31, 2020, the Company had $677.9 million outstanding on seven non-recourse mortgage notes. All interest rates on the secured mortgage notes are fixed. Assets with depreciated carrying values of $1.1 billion were pledged as security on these mortgage notes payable.
Other Debt Information
At December 31, 2020 and 2019, the estimated fair value of the Company’s notes payable was $2.3 billion calculated by discounting the debt's remaining contractual cash flows at estimated rates at which similar loans could have been obtained at December 31, 2020 and 2019. The estimate of the current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. These fair value calculations are considered to be Level 2 under the guidelines as set forth in ASC 820 as the Company utilizes market rates for similar type loans from third party brokers.
For the years ended December 31, 2020, 2019, and 2018, interest was recorded as follows (in thousands):
202020192018
Total interest incurred$74,929 $65,182 $44,332 
Interest capitalized(14,324)(11,219)(4,902)
Total interest expense$60,605 $53,963 $39,430 
Debt Maturities
Future principal payments due (including scheduled amortization payments and payments due upon maturity) on the Company's notes payable at December 31, 2020 are as follows (in thousands): 
2021$266,368 
2022102,401 
2023485,556 
202479,087 
2025256,755 
Thereafter970,126 
$2,160,293