DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2020

Debt obligations consist of the following (dollars in thousands):


	December 31,
	2020		2019
Mortgages payable	$	130,997	$	134,038
Junior subordinated notes	37,400		37,400
Deferred loan costs	(880)		(1,160)
Total debt obligations	$	167,517	$	170,278

At December 31, 2020, $130,997,000 of mortgage debt is outstanding on the Company's eight multi-family properties and one commercial property with a weighted average interest rate of 4.15% and a weighted average remaining term to maturity of 4.4 years. Scheduled principal repayments for the next five years and thereafter are as follows (dollars in thousands):


Year Ending December 31,	Scheduled Principal Payments
2021	$	17,274
2022	62,543
2023	1,270
2024	1,316
2025	16,661
Thereafter	31,933
	$	130,997

NOTE 8—DEBT OBLIGATIONS (Continued)

The Company incurred the following mortgage debt in connection with the purchase of our partner's' interest in the year ended December 31, 2019 (dollars in thousands):

Location

Acquisition Date

Mortgage balance at acquisition

Interest Rate

Maturity Date

San Marcos, TX

10/4/2019

17,158

4.42%

October 2025

Credit Facility

The Company entered into a credit facility dated April 18, 2019, as amended and modified from time-to-time, with an affiliate of Valley National Bank. The facility allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $10,000,000 to facilitate the acquisition of multi-family properties and for working capital (including dividend payments) and operating expenses. The facility is secured by the cash available in certain cash accounts maintained by the Company at Valley National Bank, matures April 2021 and bears an adjustable interest rate of 50 basis points over the prime rate, with a floor of 4.25%. The interest rate in effect as of December 31, 2020 is 4.25%. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and maximum amount then available under the facility. At December 31, 2020, the Company is in compliance in all material respects with its obligations under the facility.

At December 31, 2020 and December 31, 2019, there was no outstanding balance on the facility. Interest expense for the years ended December 31, 2020 and 2019, which includes amortization of deferred financing costs and unused fees ,was $96,000 and $204,000 respectively. Deferred costs of $12,000 and $53,000 are recorded in other assets on the consolidated balance sheets at December 31, 2020 and 2019, respectively.

Junior Subordinated Notes

At December 31, 2020 and 2019, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000 before deferred financing costs of $317,000 and $337,000, respectively. The interest rate on the outstanding balance resets quarterly and is based on three month LIBOR + 2.00% The rate in effect at December 31, 2020 and 2019 was 2.21% and 3.94% respectively. The notes mature April 30, 2036.

The notes require interest only payments through the maturity date, at which time repayment of all outstanding principal and unpaid interest is due. Interest expense for the years ended December 31, 2020 and 2019, which includes amortization of deferred costs, was $1,119,000 and $1,711,000, respectively.