Mortgages and Other Loans Payable (Tables)

12 Months Ended

Dec. 31, 2017

Mortgages and Other Loans Payable

Schedule of senior unsecured notes and other related disclosures by scheduled maturity date

The first mortgages and other loans payable collateralized by the respective properties and assignment of leases or debt investments at December 31, 2017 and 2016, respectively, were as follows (amounts in thousands):

Property	Maturity Date	Interest Rate (1)		December 31, 2017			December 31, 2016
Fixed Rate Debt:
Unsecured Loan	June 2018		4.81%	$	16,000		$	16,000
One Madison Avenue	May 2020		5.91%	486,153			517,806
762 Madison Avenue	February 2022		5.00%	771			7,694
100 Church Street	July 2022		4.68%	217,273			221,446
919 Third Avenue (2)	June 2023		5.12%	500,000			500,000
420 Lexington Avenue	October 2024		3.99%	300,000			300,000
400 East 58th Street (3)	November 2026		3.00%	40,000			40,000
Landmark Square	January 2027		4.90%	100,000			100,000
485 Lexington Avenue	February 2027		4.25%	450,000			450,000
1080 Amsterdam (4)	February 2027		3.58%	36,363			—
315 West 33rd Street	February 2027		4.17%	250,000			—
Series J Preferred Units (5)	April 2051		3.75%	4,000			4,000
1515 Broadway (6)				—			888,531
885 Third Avenue (7)				—			267,650
FHLBNY Facility (8)				—			105,000
FHLBNY Facility (8)				—			100,000
Total fixed rate debt				$	2,400,560		$	3,518,127
Floating Rate Debt:
719 Seventh Avenue (9)	February 2018	L+	3.05%	$	41,622		$	37,388
183, 187 Broadway & 5-7 Dey Street	May 2018	L+	2.70%	58,000			58,000
2017 Master Repurchase Agreement	June 2018	L+	2.38%	90,809			—
220 East 42nd Street	October 2020	L+	1.60%	275,000			275,000
2016 Master Repurchase Agreement (10)				—			184,642
One Vanderbilt Avenue (11)				—			64,030
1080 Amsterdam (12)				—			3,525
Total floating rate debt				$	465,431		$	622,585
Total fixed rate and floating rate debt				$	2,865,991		$	4,140,712
Mortgages reclassed to liabilities related to assets held for sale				—			—
Total mortgages and other loans payable				$	2,865,991		$	4,140,712
Deferred financing costs, net of amortization				(28,709		)	(66,882		)
Total mortgages and other loans payable, net				$	2,837,282		$	4,073,830

(1) Interest rate as of December 31, 2017, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated interest rate spread over 30-day LIBOR, unless otherwise specified.

(2) We own a 51.0% controlling interest in the consolidated joint venture that is the borrower on this loan. In January 2018, the partnership agreement for our investment in the property at 919 Third Avenue was modified resulting in our partner now having substantive participating rights in the venture. As a result the investment will no longer be deemed a VIE and our investment in the property will be deconsolidated as of January 1, 2018.

(3) The loan carries a fixed interest rate of 300 basis points for the first five years and is prepayable without penalty at the end of year five.

(4) The loan is comprised of a $35.5 million mortgage loan and $0.9 million subordinate loan with a fixed interest rate of 350 basis points and 700 basis points, respectively, for the first five years and is prepayable without penalty at the end of year five.

(5) In connection with the acquisition of a commercial real estate property, the Operating Partnership issued $4.0 million, 3.75% Series J Preferred Units of limited partnership interest, or the Series J Preferred Units, with a mandatory liquidation preference of $1,000 per unit. The Series J Preferred Units are accounted for as debt because they can be redeemed in cash by the Operating Partnership on the earlier of (i) the date of the sale of the property or (ii) April 30, 2051 or at the option of the unitholders as provided for in the related agreement.

(6) In November 2017, the Company sold a 30.13% interest in 1515 Broadway to affiliates of Allianz Real Estate. The sale did not meet the criteria for sale accounting and as a result the property was accounted for under the profit sharing method. This property is presented as an unconsolidated joint venture as of December 31, 2017. The Company achieved sale accounting upon adoption of ASC 610-20 in January 2018 and closed on the sale of an additional 12.87% interest in the property to Allianz in February 2018.

(7) In February 2016, we closed on the sale of 885 Third Avenue. The sale did not meet the criteria for sale accounting at that time. In April 2017, the mortgage was refinanced by the buyer, resulting in the Company deconsolidating the property from its financial statements in the second quarter of 2017.

(8) The facility was repaid in January 2017.

(9) In January 2018, we exercised an one year extension option to extend the maturity date to February 2019.

(10) The master repurchase agreement was repaid in October 2017.

(11) In September 2016, we closed on a $1.5 billion construction facility in connection with the development of One Vanderbilt Avenue. In January 2017, we admitted two partners, National Pension Service of Korea and Hines Interest LP, into the One Vanderbilt Avenue development project. In April 2017, the criteria for deconsolidation were met, and the development is shown within investments in unconsolidated joint ventures. See Note 6, "Investments in Unconsolidated Joint Ventures".

(12)

The following table sets forth our senior unsecured notes and other related disclosures as of December 31, 2017 and 2016, respectively, by scheduled maturity date (dollars in thousands):

Issuance	December 31, 2017 Unpaid Principal Balance		December 31, 2017 Accreted Balance			December 31, 2016 Accreted Balance			Coupon Rate (1)		Initial Term (in Years)	Maturity Date
August 5, 2011 (2)	$	250,000	$	249,953		$	249,880		5.00	%	7	August 2018
March 16, 2010 (2)	250,000		250,000			250,000			7.75	%	10	March 2020
October 5, 2017 (3)	500,000		499,489			—			3.25	%	5	October 2022
November 15, 2012 (4)	300,000		305,163			200,000			4.50	%	10	December 2022
December 17, 2015 (2)	100,000		100,000			100,000			4.27	%	10	December 2025
October 12, 2010 (5)	—		—			334,077
	$	1,400,000	$	1,404,605		$	1,133,957
Deferred financing costs, net			(8,666		)	(5,642		)
	$	1,400,000	$	1,395,939		$	1,128,315

(1) Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.

(2) Issued by the Company, the Operating Partnership and ROP, as co-obligors.

(3) Issued by the Operating Partnership with the Company and ROP as guarantors.

(4) In October 2017, the Company, the Operating Partnership and ROP, as co-obligors, issued an additional $100.0 million of 4.50% senior unsecured notes due December 2022. The notes were priced at 105.334%.

(5) In accordance with the terms of the indenture, the notes became exchangeable commencing September 14, 2017 and the Operating Partnership elected to settle exchanges in cash. In October 2017, all note holders elected to exchange the notes and the notes were repaid for $350.8 million, excluding accrued interest based on the applicable exchange rate.