NOTES PAYABLE (Tables)

6 Months Ended

Jun. 30, 2020

As of June 30, 2020 and December 31, 2019, the Company’s notes payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands):


	Book Value as of June 30, 2020		Book Value as of December 31, 2019		Contractual Interest Rate as of June 30, 2020 ⁽¹⁾	Effective Interest Rate as of June 30, 2020 ⁽¹⁾	Payment Type	Maturity Date ⁽²⁾
Anchor Centre Mortgage Loan ⁽³⁾	$	48,741	$	49,043	One-month LIBOR + 1.50%	1.66%	Principal & Interest	12/1/2020
201 17th Street Mortgage Loan ⁽⁴⁾	—		64,750		⁽⁴⁾	⁽⁴⁾	⁽⁴⁾	⁽⁴⁾
The Almaden Mortgage Loan	93,000		93,000		4.20%	4.20%	Interest Only	01/01/2022
201 Spear Street Mortgage Loan	125,000		125,000		One-month LIBOR + 1.45%	1.61%	Interest Only	01/05/2024
Carillon Mortgage Loan	111,000		111,000		One-month LIBOR +1.40%	1.56%	Interest Only	04/11/2024
Portfolio Loan Facility ⁽⁵⁾	683,225		684,225		One-month LIBOR + 1.80%	1.96%	Interest Only	11/03/2020
Portfolio Revolving Loan Facility ⁽⁶⁾	294,623		196,113		One-month LIBOR + 1.50%	1.66%	Interest Only	03/01/2023
3001 & 3003 Washington Mortgage Loan	143,245		143,245		One-month LIBOR + 1.45%	1.61%	Interest Only ⁽⁷⁾	06/01/2024
Total notes payable principal outstanding	1,498,834		1,466,376
Deferred financing costs, net	(5,603)		(6,497)
Total Notes Payable, net	$	1,493,231	$	1,459,879

_____________________

⁽¹⁾ Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2020. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2020, consisting of the contractual interest rate and using interest rate indices as of June 30, 2020, where applicable. For information regarding the Company’s derivative instruments, see Note 9, “Derivative Instruments.”

⁽²⁾ Represents the maturity date as of June 30, 2020; subject to certain conditions, the maturity dates of certain loans may be extended beyond the dates shown.

⁽³⁾ As of June 30, 2020, the Anchor Centre Mortgage Loan has one six-month extension option to June 1, 2021, subject to conditions contained in the loan modification agreement.

⁽⁴⁾ On January 23, 2020, the 201 17th Street Mortgage Loan was paid off and the 201 17th Street property was added to the collateral of the Portfolio Revolving Loan Facility. See below, “- Recent Financing Transaction - Modified Portfolio Revolving Loan Facility.”

⁽⁵⁾ As of June 30, 2020, the Portfolio Loan Facility was secured by RBC Plaza, Preston Commons, Sterling Plaza, Towers at Emeryville, Ten Almaden, Town Center and Accenture Tower. As of June 30, 2020, the face amount of the Portfolio Loan Facility was $911.0 million, of which $683.2 million is term debt and $227.8 million is revolving debt. As of June 30, 2020, the outstanding balance under the loan consisted of $683.2 million of term debt. As of June 30, 2020, an additional $227.8 million of revolving debt remained available for immediate future disbursements, subject to certain conditions set forth in the loan agreement. During the remaining term of the Portfolio Loan Facility, the Company has an option to increase the loan amount by up to an additional $400.0 million in increments of $25.0 million, to a maximum of $1.31 billion, of which 75% would be term debt and 25% would be revolving debt, subject to certain conditions contained in the loan documents. Subsequent to June 30, 2020, the Company provided notice to the lender to exercise a one-year extension option to extend the maturity date to November 3, 2021 and there is an additional one-year extension option remaining on the Portfolio Loan Facility.

⁽⁶⁾ See below, “- Recent Financing Transaction - Modified Portfolio Revolving Loan Facility.”

⁽⁷⁾ Represents the payment type required as of June 30, 2020. Certain future monthly payments due under the loan also include amortizing principal payments. For more information on the Company’s contractual obligations under its notes payable, see the five-year maturity table below.

Schedule of Maturities of Long-term Debt

The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of June 30, 2020 (in thousands):


July 1, 2020 through December 31, 2020	$	731,966
2021	—
2022	93,000
2023	294,623
2024	379,245
	$	1,498,834

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details