Mortgage Notes Payable

9 Months Ended

Sep. 30, 2022

Mortgage Notes Payable:

Mortgage notes payable at September 30, 2022 and December 31, 2021 consist of the following:


	Carrying Amount of Mortgage Notes(1)
Property Pledged as Collateral	September 30, 2022		December 31, 2021		Effective Interest Rate(2)		Monthly Debt Service(3)		Maturity Date(4)
Chandler Fashion Center(5)	$	255,689	$	255,548	4.18	%	$	875	2024
Danbury Fair Mall(6)	150,522		168,037		6.05	%	1,538		2023
Fashion District Philadelphia(7)	111,544		194,602		6.06	%	564		2024
Fashion Outlets of Chicago	299,334		299,274		4.61	%	1,145		2031
Fashion Outlets of Niagara Falls USA	91,903		95,329		6.45	%	727		2023
Freehold Raceway Mall(5)	398,836		398,711		3.94	%	1,300		2029
Fresno Fashion Fair	324,205		324,056		3.67	%	971		2026
Green Acres Commons(8)	125,161		124,875		5.58	%	555		2023
Green Acres Mall(9)	239,639		246,061		3.94	%	1,447		2023
Kings Plaza Shopping Center	536,313		535,928		3.71	%	1,629		2030
Oaks, The(10)	167,050		176,721		5.49	%	1,138		2024
Pacific View(11)	70,927		111,481		5.45	%	328		2032
Queens Center	600,000		600,000		3.49	%	1,744		2025
Santa Monica Place(12)	299,875		299,314		4.54	%	1,073		2022
SanTan Village Regional Center	219,391		219,323		4.34	%	788		2029
Towne Mall(13)	18,934		19,320		4.48	%	117		2022
Victor Valley, Mall of	114,893		114,850		4.00	%	380		2024
Vintage Faire Mall	235,287		240,124		3.55	%	1,256		2026
	$	4,259,503	$	4,423,554

(1)The mortgage notes payable also include unamortized deferred finance costs that are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. Unamortized deferred finance costs were $11,368 and $11,946 at September 30, 2022 and December 31, 2021, respectively.

(2)The interest rate disclosed represents the effective interest rate, including the impact of debt premium and deferred finance costs.

(3)The monthly debt service represents the payment of principal and interest.

(4)The maturity date assumes that all extension options are fully exercised and that the Company does not opt to refinance the debt prior to these dates. These extension options are at the Company's discretion, subject to certain conditions, which the Company believes will be met.

(5)A 49.9% interest in the loan has been assumed by a third party in connection with the Company's joint venture in Chandler Freehold (See Note 12—Financing Arrangement).

(6)On September 15, 2020, the Company closed on a loan extension agreement for Danbury Fair Mall. Under the extension agreement, the original loan maturity date of October 1, 2020 was extended to April 1, 2021 and subsequently to October 1, 2021. The loan amount and interest rate remained unchanged following these extensions. On September 15, 2021, the Company further extended the loan maturity to July 1, 2022. The interest rate remained unchanged, and the Company repaid $10,000 of the outstanding loan balance at closing. On July 1, 2022, the Company further extended the loan maturity to July 1, 2023. The interest rate remained unchanged at 5.5%, and the Company repaid $10,000 of the outstanding loan balance at closing.

(7)On August 26, 2022, the Company repaid $83,058 of the outstanding loan balance to satisfy certain loan conditions.

(8)On March 25, 2021, the Company closed on a two-year extension of the loan to March 29, 2023. The interest rate is LIBOR plus 2.75% and the Company repaid $4,680 of the outstanding loan balance at closing.

(9)On January 22, 2021, the Company closed on a one-year extension of the loan to February 3, 2022, which also included a one-year extension option to February 3, 2023 which has been exercised. The interest rate remained unchanged, and the Company repaid $9,000 of the outstanding loan balance at closing.

(10)On May 6, 2022, the Company closed on a two-year extension of the loan to June 5, 2024 at a new fixed interest rate of 5.25%. The Company repaid $5,000 of the outstanding loan balance at closing.

(11)On April 29, 2022, the Company closed on a new $72,000 loan with a fixed rate of 5.29% that matures on May 6, 2032.

(12)The loan bears interest at LIBOR plus 1.48%. The loan is covered by an interest rate cap agreement that effectively prevents LIBOR from exceeding 4.0% during the period ending December 9, 2022. The Company expects to close in November 2022 a three-year extension at a floating rate of SOFR plus 1.58%, subject to negotiating final loan terms and documentation and customary closing conditions.

(13)The Company did not repay the loan on its maturity date, and has begun the process of transferring control of this asset to the loan servicer.

Most of the mortgage loan agreements contain a prepayment penalty provision for the early extinguishment of the debt.

The Company's mortgage notes payable are secured by the properties on which they are placed and are non-recourse to the Company.

The Company expects that all loan maturities during the next twelve months will be refinanced, restructured, extended and/or paid off from the Company's line of credit or with cash on hand, with the exception of Towne Mall as noted above.

Total interest expense capitalized was $2,859 and $3,102 for the three months ended September 30, 2022 and 2021, respectively, and $7,151 and $6,812 for the nine months ended September 30, 2022 and 2021, respectively.

The estimated fair value (Level 2 measurement) of mortgage notes payable at September 30, 2022 and December 31, 2021 was $4,004,815 and $4,261,429, respectively, based on current interest rates for comparable loans. Fair value was determined using a present value model and an interest rate that included a credit value adjustment based on the estimated value of the property that serves as collateral for the underlying debt.