Note 6 — Mortgage Notes Payable

The Company's mortgage notes payable as of March 31, 2016 and December 31, 2015 consist of the following:



		Outstanding Loan Amount
Portfolio	Encumbered Properties	March 31, 2016			December 31, 2015			Effective Interest Rate		Interest Rate		Maturity
		(In thousands)			(In thousands)
Design Center	1	$	19,695		$	19,798		4.4	%	Fixed		Dec. 2021
1100 Kings Highway	1	20,200			20,200			3.4	%	Fixed	⁽¹⁾	Aug. 2017
256 West 38th Street	1	24,500			24,500			3.1	%	Fixed	⁽¹⁾	Dec. 2017
1440 Broadway⁽²⁾	1	305,000			305,000			4.0	%	Variable	⁽³⁾	Oct. 2019
Foot Locker⁽⁴⁾		—			3,250
Duane Reade⁽⁴⁾		—			8,400
1623 Kings Highway⁽⁴⁾		—			7,288
Mortgage notes payable, gross principal amount		369,395			388,436
Less: deferred financing costs, net		(6,310		)	(6,993		)
Mortgage notes payable, net of deferred financing costs	4	$	363,085		$	381,443		4.0	%	⁽⁵⁾

______________________


(1)	Fixed through an interest rate swap agreement.


(2)	Total commitments of $325.0 million; additional $20.0 million available, subject to lender approval, to fund certain tenant allowances, capital expenditures and leasing costs.


(3)	LIBOR portion is capped through an interest rate cap agreement.


(4)	During the three months ended March 31, 2016, the Company repaid three mortgage notes payable as a result of the sales of Duane Reade, 1623 Kings Highway and Foot Locker.


(5)	Calculated on a weighted average basis for all mortgages outstanding as of March 31, 2016.

The Company's remaining properties, with the exception of 367-369 Bleecker Street and 387 Bleecker Street (which excludes 382-384 Bleecker Street), that are not subject to mortgage notes payable collateralize the borrowing base of the Credit Facility and are subject to mortgages under the Credit Facility for that purpose.

On September 30, 2015, in connection with the mortgage notes payable secured by its property located at 1440 Broadway, the Company executed guarantees in favor of the lenders with respect to the costs of certain unfunded obligations of the Company related to tenant allowances, capital expenditures and leasing costs, which guarantees are capped at $5.3 million in the aggregate. The guarantees expire in October 2019, the maturity date of the 1440 Broadway mortgage. As of March 31, 2016, the Company has not been required to perform under the guarantees and has not recognized any assets or liabilities related to the guarantees.

Real estate investments of $635.1 million, at cost, at March 31, 2016 have been pledged as collateral to their respective mortgages and are not available to satisfy the Company's corporate debts and obligations unless first satisfying the mortgage notes payable on the properties.

The following table summarizes the scheduled aggregate principal repayments subsequent to March 31, 2016:



(In thousands)	Future Minimum Principal Payments
April 1, 2016 - December 31, 2016	$	315
2017	48,245
2018	3,703
2019	308,869
2020	4,041
Thereafter	4,222
Total	$	369,395

Some of the Company's mortgage note agreements require compliance with certain property-level financial covenants including debt service coverage ratios. As of March 31, 2016, the Company was in compliance with the financial covenants under its mortgage note agreements.