Debt (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Interest Income and Interest Expense Disclosure [Table Text Block]

The table below sets forth the costs included in interest expense related to the Company's debt arrangements on the accompanying Consolidated Statement of Operations for the three and nine months ended September 30, 2017 and September 30, 2016.

	Three months ended September 30,				Nine months ended September 30,
Costs Included in Interest Expense (in thousands)	2017		2016		2017		2016
Amortization of deferred financing fees and debt issuance costs and fair market value premiums	$	546	$	428	$	1,553	$	1,208
Facility fees and unused fees	$	286	$	347	$	839	$	1,035

Summary of the mortgage notes payable, unsecured term loans and credit facility

The following table sets forth a summary of the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes as of September 30, 2017 and December 31, 2016.

Loan	Principal Outstanding as of September 30, 2017 (in thousands)			Principal Outstanding as of December 31, 2016 (in thousands)			Interest  Rate (1)		Maturity Date	Prepayment Terms (2)
Unsecured credit facility:
Unsecured Credit Facility (3)	$	245,000		$	28,000		L + 1.15%		Dec-18-2019	i
Total unsecured credit facility	245,000			28,000
Unsecured term loans:
Unsecured Term Loan C	150,000			150,000			L + 1.30%		Sep-29-2020	i
Unsecured Term Loan B	150,000			150,000			L + 1.30%		Mar-21-2021	i
Unsecured Term Loan A	150,000			150,000			L + 1.30%		Mar-31-2022	i
Unsecured Term Loan D (4)	—			—			L + 1.30%		Jan-04-2023	i
Total unsecured term loans	450,000			450,000
Less: Total unamortized deferred financing fees and debt issuance costs	(3,934		)	(3,392		)
Total carrying value unsecured term loans	446,066			446,608
Unsecured notes:
Series F Unsecured Notes	100,000			100,000			3.98	%	Jan-05-2023	ii
Series A Unsecured Notes	50,000			50,000			4.98	%	Oct-1-2024	ii
Series D Unsecured Notes	100,000			100,000			4.32	%	Feb-20-2025	ii
Series B Unsecured Notes	50,000			50,000			4.98	%	Jul-1-2026	ii
Series C Unsecured Notes	80,000			80,000			4.42	%	Dec-30-2026	ii
Series E Unsecured Notes	20,000			20,000			4.42	%	Feb-20-2027	ii
Total unsecured notes	400,000			400,000
Less: Total unamortized deferred financing fees and debt issuance costs	(1,832		)	(2,034		)
Total carrying value unsecured notes	398,168			397,966
Mortgage notes (secured debt):
Union Fidelity Life Insurance Company	—			5,384			5.81	%	Apr-30-2017	iii
Webster Bank, National Association	—			2,853			3.66	%	May-29-2017	iv
Webster Bank, National Association	—			3,073			3.64	%	May-31-2017	iv
Wells Fargo, National Association	—			4,043			5.90	%	Aug-1-2017	v
Connecticut General Life Insurance Company -1 Facility	—			35,320			6.50	%	Feb-1-2018	vi
Connecticut General Life Insurance Company -2 Facility	—			36,892			5.75	%	Feb-1-2018	vi
Connecticut General Life Insurance Company -3 Facility	—			16,141			5.88	%	Feb-1-2018	vi
Wells Fargo Bank, National Association CMBS Loan	55,366			56,608			4.31	%	Dec-1-2022	vii
Thrivent Financial for Lutherans	3,933			4,012			4.78	%	Dec-15-2023	iv
Total mortgage notes	59,299			164,326
Total unamortized fair market value premiums	63			112
Less: Total unamortized deferred financing fees and debt issuance costs	(667		)	(873		)
Total carrying value mortgage notes	58,695			163,565
Total / weighted average interest rate (5)	$	1,147,929		$	1,036,139		3.44	%

(1) Interest rate as of September 30, 2017. At September 30, 2017, the one-month LIBOR (“L”) was 1.23222%. The interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for the Company's unsecured credit facility and unsecured term loans is based on the Company's consolidated leverage ratio, as defined in the respective loan agreements.

(2) Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty two months prior to the maturity date; (iv) pre-payable without penalty three months prior to the maturity date; (v) pre-payable without penalty three months prior to the maturity date, however can be defeased; (vi) pre-payable without penalty six months prior to the maturity date; and (vii) pre-payable without penalty three months prior to the maturity date, however can be defeased beginning January 1, 2016. 

(3) The capacity of the unsecured credit facility is $450.0 million. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $1.7 million and $2.3 million is included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016, respectively.

(4) Capacity of $150.0 million, which the Company has until July 27, 2018 to draw.

(5) The weighted average interest rate was calculated using the fixed interest rate swapped on the current notional amount of $450.0 million of debt, and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums.

Schedule of aggregate carrying value of the debt and the corresponding estimate of fair value

The following table presents the aggregate principal outstanding of the Company’s debt and the corresponding estimate of fair value as of September 30, 2017 and December 31, 2016 (in thousands).

	September 30, 2017					December 31, 2016
	Principal Outstanding			Fair Value		Principal Outstanding			Fair Value
Unsecured credit facility	$	245,000		$	245,000	$	28,000		$	28,000
Unsecured term loans	450,000			450,000		450,000			450,000
Unsecured notes	400,000			417,210		400,000			399,091
Mortgage notes	59,299			60,788		164,326			166,099
Total principal amount	1,154,299			$	1,172,998	1,042,326			$	1,043,190
Add: Total unamortized fair market value premiums	63					112
Less: Total unamortized deferred financing fees and debt issuance costs	(6,433		)			(6,299		)
Total carrying value	$	1,147,929				$	1,036,139