Debt

Debt consists of the following:



	September 30, 2015		December 31, 2014
In-substance defeased debt, interest payable at 5.62%, secured and paid by pledged cash and treasury securities, due October 1, 2015	$	25,324	$	25,670
Community Development District debt, secured by certain real estate and standby note purchase agreements, due through May 2039, interest payable at 2.25% to 7.0%	6,777		6,516
Construction loan in the Pier Park North joint venture, due February 2016, bearing interest at LIBOR plus 210 basis points, or 2.30% and 2.26% at September 30, 2015 and December 31, 2014, respectively	37,625		31,618
Total debt	$	69,726	$	63,804

In connection with the sale of the Company’s office building portfolio in 2007, the Company completed an in-substance defeasance of debt of approximately $29.3 million of mortgage debt, which has a final balloon payment that was made in October 2015. The Company assigned the mortgage debt and deposited sufficient funds with a trustee solely to satisfy the principal and remaining interest obligations on the mortgage debt when due. The indebtedness remained on the Company’s Condensed Consolidated Balance Sheets at September 30, 2015 and December 31, 2014 since the transaction was not considered to be an extinguishment of debt because the Company is liable if, for any reason, the government securities were insufficient to repay the debt. In October 2015, the trustee made the final balloon payment on the mortgage debt in the amount of $25.3 million, utilizing the pledged treasury securities and cash. There was no shortfall on the payment.

Community Development District (“CDD”) bonds financed the construction of infrastructure improvements at several of the Company’s projects. The principal and interest payments on the bonds are paid by assessments on, or from sales proceeds of, the properties benefited by the improvements financed by the bonds. The Company has recorded a liability for CDD assessments that are associated with platted property, which is the point at which the assessments become fixed or determinable. Additionally, the Company has recorded a liability for the balance of the CDD assessment that is associated with unplatted property if it is probable and reasonably estimable that the Company will ultimately be responsible for repaying. The Company has recorded debt of $6.8 million and $6.5 million related to CDD assessments as of September 30, 2015 and December 31, 2014, respectively. The Company’s total outstanding CDD assessments were $22.2 million and $22.7 million at September 30, 2015 and December 31, 2014, respectively. The Company pays interest on the total outstanding CDD assessments.

In February 2013, the Company’s Pier Park North joint venture entered into a Construction Loan agreement for $41.0 million that matures in February 2016 with the possibility of an option for a two year extension. As of September 30, 2015 and December 31, 2014, $37.6 million and $31.6 million, respectively were outstanding on the Construction Loan. See Note 8, Real Estate Joint Ventures. In October 2015, the Pier Park North joint venture refinanced its February 2013 Construction Loan and entered into a $48.2 million loan. The Refinanced Loan will accrue interest at a rate of 4.1% per annum and will mature on November 1, 2025. See Note 8, Real Estate Joint Ventures for details on the Refinanced Loan.

The aggregate maturities of debt subsequent to September 30, 2015 are:



	September 30, 2015

2015	25,324
2016 ⁽¹⁾	37,742
2017	121
2018	126
2019	130
Thereafter	6,283
	$	69,726



(1	)	In October 2015, the Company’s Pier Park North joint venture refinanced its Construction Loan that would have matured in 2016. As a result, $37.6 million will no longer be due in 2016. The Refinanced Loan will mature in November 2025. See Note 8, Real Estate Joint Ventures.