7. Debt

A summary of the Company’s consolidated indebtedness is as follows (dollars in thousands):

	Interest Rate at				Carrying Value at
	September 30,	December 31,		Maturity Date at	September 30,			December 31,
	2018	2017		September 30, 2018	2018			2017
Mortgages Payable
Core Fixed Rate	3.88%-6.00%	3.88%-5.89%		Feb 2024 - Apr 2035	$	178,677		$	179,870
Core Variable Rate - Swapped ^(a)	3.41%-5.67%	3.41%-5.67%		Jan 2023 - Jun 2026		32,834			74,152
Total Core Mortgages Payable						211,511			254,022
Fund II Fixed Rate	1.00%-4.75%	1.00%-4.75%		May 2020 - Aug 2042		205,262			205,262
Fund II Variable Rate - Swapped ^(a)	4.27%	4.27%		Nov 2021		19,385			19,560
Total Fund II Mortgages Payable						224,647			224,822
Fund III Variable Rate	LIBOR+2.65%-LIBOR+4.65%	Prime+0.50%-LIBOR+4.65%		Jun 2020 - Dec 2021		75,393			65,866
Fund IV Fixed Rate	3.40%-4.50%	3.40%-4.50%		Oct 2025 - Jun 2026		8,189			10,503
Fund IV Variable Rate	LIBOR+1.60%-LIBOR+3.95%	LIBOR+1.70%-LIBOR+3.95%		Nov 2018 - Aug 2021		244,654			250,584
Fund IV Variable Rate - Swapped ^(a)	3.67%-4.23%	3.67%-4.23%		May 2019 - Dec 2022		72,074			86,851
Total Fund IV Mortgages Payable						324,917			347,938
Fund V Variable Rate	LIBOR+2.15%-LIBOR+2.25%	LIBOR+2.25%		Oct 2020 - Jan 2021		51,506			28,613
Fund V Variable Rate - Swapped ^(a)	4.61%-4.78%		—	Feb 2021 - Jun 2021		86,570			—
Total Fund V Mortgage Payable						138,076			28,613
Net unamortized debt issuance costs						(10,527	)		(12,943	)
Unamortized premium						779			856
Total Mortgages Payable					$	964,796		$	909,174
Unsecured Notes Payable
Core Variable Rate Unsecured Term Loans - Swapped ^(a)	2.49%-4.05%	2.54%-3.59%		Mar 2023	$	350,000		$	300,000
Fund II Unsecured Notes Payable	LIBOR+1.65%	LIBOR+1.40%		Sep 2020		37,000			31,500
Fund IV Term Loan/Subscription Facility	LIBOR+1.65%-LIBOR+2.75%	LIBOR+1.65%-LIBOR+2.75%		Dec 2018 - Oct 2019		40,825			40,825
Fund V Subscription Facility	LIBOR+1.60%	LIBOR+1.60%		May 2020		61,500			103,300

Net unamortized debt issuance costs						(392	)		(1,890	)
Total Unsecured Notes Payable					$	488,933		$	473,735
Unsecured Line of Credit
Core Unsecured Line of Credit	LIBOR+1.35%	LIBOR+1.40%		Mar 2022	$	13,324		$	18,048
Core Unsecured Line of Credit - Swapped ^(a)	4.15%-5.02%	4.20%-5.07%		Mar 2022		14,676			23,452
Total Unsecured Line of Credit					$	28,000		$	41,500

Total Debt - Fixed Rate ^(b)					$	967,667		$	899,650
Total Debt - Variable Rate ^(c)						524,202			538,736
Total Debt						1,491,869			1,438,386
Net unamortized debt issuance costs						(10,919	)		(14,833	)
Unamortized premium						779			856
Total Indebtedness					$	1,481,729		$	1,424,409

(a)

At September 30, 2018, the stated rates ranged from LIBOR + 1.70% to LIBOR +1.90% for Core variable-rate debt; LIBOR + 1.39% for Fund II variable-rate debt; LIBOR + 2.65% to LIBOR + 4.65% for Fund III variable-rate debt; LIBOR + 1.60% to LIBOR +3.95% for Fund IV variable-rate debt; LIBOR + 2.15% to LIBOR + 2.25% for Fund V variable-rate debt; LIBOR + 1.25% for Core variable-rate unsecured term loans; and LIBOR + 1.35% for Core variable-rate unsecured lines of credit.

(b)	Includes $575.5 million and $504.0 million, respectively, of variable-rate debt that has been fixed with interest rate swap agreements as of the periods presented.

(c)	Includes $143.8 million and $141.1 million, respectively, of variable-rate debt that is subject to interest cap agreements.

Credit Facility

On February 20, 2018, the Company entered into a $500.0 million senior unsecured credit facility (the “Credit Facility”), comprised of a $150.0 million senior unsecured revolving credit facility (the “Revolver”) which bears interest at LIBOR + 1.35%, and a $350.0 million senior unsecured term loan (the “Term Loan”) which bears interest at LIBOR + 1.25%. The Credit Facility refinanced the Company’s existing $300.0 million credit facility (comprised of the $150.0 million Core unsecured revolving line of credit and the $150.0 million term loan), $150.0 million in Core unsecured term loans and repaid a $40.4 million mortgage secured by its 664 North Michigan Property. The Revolver and Term Loans mature on March 31, 2022 and March 31, 2023, respectively.

Mortgages Payable

During the nine months ended September 30, 2018, the Company obtained four new non-recourse Fund mortgages totaling $109.5 million with a weighted-average interest rate of LIBOR + 1.99% collateralized by four properties and maturing in 2021. The Company entered into interest rate swap contracts to effectively fix the variable portion of the interest rates of three of these obligations with a notional value of $86.6 million at an interest rate of 2.75%. In addition, the Company drew down $9.8 million on a Fund III construction loan. During the nine months ended September 30, 2018, the Company repaid one Core mortgage in full, which had a balance of $40.4 million and an interest rate of LIBOR + 1.65%, and two Fund IV mortgages in full, which had balances of $15.5 million and $2.3 million and interest rates of LIBOR + 2.15% and 3.40%, respectively. The Company also made scheduled principal payments of $5.1 million. At September 30, 2018 and December 31, 2017, the Company’s mortgages were collateralized by 43 and 42 properties, respectively, and the related tenant leases. Certain loans are cross-collateralized and contain cross-default provisions. The loan agreements contain customary representations, covenants and events of default. Certain loan agreements require the Company to comply with affirmative and negative covenants, including the maintenance of debt service coverage and leverage ratios. A portion of the Company’s variable-rate mortgage debt has been effectively fixed through certain cash flow hedge transactions (Note 8).

The mortgage loan related to Brandywine Holdings in the Company’s Core Portfolio, which was originated in June 2006 and had an original principal amount of $26.3 million, was in default and subject to litigation at September 30, 2018 and December 31, 2017. This loan bears interest at 6.00%, excluding default interest of 5%, and is collateralized by a property, in which the Company holds a 22% controlling interest.

Unsecured Notes Payable

Unsecured notes payable for which total availability was $106.6 million and $70.3 million at September 30, 2018 and December 31, 2017, respectively, are comprised of the following:

•

As discussed above, the Core unsecured term loans totaling $300.0 million were refinanced in February 2018, into one $350.0 million term loan with an interest rate of LIBOR+ 1.25% and maturing in March 2023. The outstanding balance of the Core term loans was $350.0 million and $300.0 million, respectively, at September 30, 2018 and December 31, 2017. During the nine months ended September 30, 2018, the Company entered into an interest rate swap contract to effectively fix the variable portion of the interest rate with a notional value of $50.0 million at an interest rate of 2.80%. The Company previously entered into swap agreements fixing the rates of the remaining Core term loans.

•

Fund II has a $40.0 million term loan secured by the real estate assets of City Point Phase II and guaranteed by the Company and the Operating Partnership. The outstanding balance of the Fund II term loan was $37.0 million and $31.5 million at September 30, 2018 and December 31, 2017, respectively. Total availability was $3.0 million and $8.5 million at September 30, 2018 and December 31, 2017, respectively.

•

At Fund IV there are a $41.8 million bridge facility and a $21.5 million subscription line. The outstanding balance of the Fund IV bridge facility was $40.8 million at each of September 30, 2018 and December 31, 2017. Total availability was $1.0 million at each of September 30, 2018 and December 31, 2017. The outstanding balance of the Fund IV subscription line was $0.0 million and total available credit was $14.1 million at each of September 30, 2018 and December 31, 2017, reflecting letters of credit of $7.4 million.

•

Fund V has a $150.0 million subscription line collateralized by Fund V’s unfunded capital commitments and guaranteed by the Operating Partnership. The outstanding balance and total available credit of the Fund V subscription line was $61.5 million and $88.5 million, respectively at September 30, 2018. The outstanding balance and total available credit of the Fund V subscription line was $103.3 million and $46.7 million, respectively at December 31, 2017.

Unsecured Revolving Line of Credit

As discussed above, the Core unsecured revolving line of credit was refinanced in February 2018. The Company had a total of $109.7 million and $96.2 million, respectively, available under its $150.0 million Core unsecured revolving lines of credit reflecting borrowings of $28.0 million and $41.5 million, respectively, and letters of credit of $12.3 million at each of September 30, 2018 and December 31, 2017. At September 30, 2018 and December 31, 2017, a portion of the Core unsecured revolving line of credit was swapped to a fixed rate.

Scheduled Debt Principal Payments

The scheduled principal repayments of the Company’s consolidated indebtedness, as of September 30, 2018 are as follows (in thousands):

Year Ending December 31,
2018 (Remainder)	$	38,938
2019		192,839
2020		468,162
2021		180,514
2022		76,529
Thereafter		534,887
		1,491,869
Unamortized premium		779
Net unamortized debt issuance costs		(10,919	)
Total indebtedness	$	1,481,729

See Note 4 for information about liabilities of the Company’s unconsolidated affiliates.