DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

DEBT OBLIGATIONS

DEBT OBLIGATIONS

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

	December 31,
	2021		2020
Mortgages payable	$	200,857	$	130,997
Junior subordinated notes	37,400		37,400
Deferred loan costs	(1,277)		(880)
Total debt obligations	$	236,980	$	167,517

A summary of activity in property debt for the year ended December 31, 2021 is as follows (dollars in thousands):

Balance at December 31, 2020	$	130,434
Acquisitions	116,105
Fair value adjustment upon consolidation	2,582
Debt payoff in conjunction with property sales	(14,260)
Debt Payoff	(31,879)
Principal Amortization	(2,688)
Changes in Deferred Fees	(417)
Balance at December 31, 2021	$	199,877

At December 31, 2021, $200,857,000 of mortgage debt with a weighted average interest rate of 3.78% and a weighted average term to maturity of 10.1 years is outstanding on eight of the Company's multi-family properties. Scheduled principal repayments for the next five years and thereafter are as follows (dollars in thousands):

Year Ending December 31,	Scheduled Principal Payments
2022	$	31,355
2023	1,679
2024	2,095
2025	17,467
2026	1,904
Thereafter	146,357
	$	200,857

NOTE 8—DEBT OBLIGATIONS (Continued)

The Company incurred the following mortgage debt in connection with the purchase of its venture partners' interests in the year ended December 31, 2021 (dollars in thousands):

Location	Acquisition Date	Mortgage balance at acquisition			Interest Rate		Maturity Date
Bells Bluff - West Nashville, TN	8/18/2021	$	52,000		3.48	%	August 2041
Crestmont at Thornblade - Greenville, SC	10/1/2021	26,425		(a)	4.69	%	November 2028
Crossings - Nashville, TN	12/1/2021	37,680			3.11	%	December 2031
		$	116,105

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(a) Debt assumed in connection with the purchase of the joint venture partner's remaining interest in the venture does not include purchase price allocation of

$2,642 related to this debt.

The Company paid off the following debt in the year ended December 31, 2021 (dollars in thousands):

	Mortgage Payoff		Interest Rate		Maturity Date	Prepayment Charges
Avalon - supplemental	$	2,903	4.92	%	3/1/2022	$	29
Avondale Station	7,140		3.74	%	12/1/2022	376
Avondale Station - supp1emental	6,866		5.53	%	12/1/2022	277
Woodland Trails	14,025		4.36	%	2/1/2022	140
RIPCO	945		5.25	%	4/1/2022	—
Total debt paid	$	31,879				$822

In connection with the pay off of the RIPCO debt, the Company terminated the interest rate swap associated with this debt.

The Company did not incur any debt in the year ended December 31, 2020.

Credit Facility

The Company entered into an amended and restated credit facility dated November 18, 2021 with an affiliate of Valley National Bank ("VNB"). The facility allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $35,000,000 to facilitate the acquisition of multi-family properties, repay mortgage debt secured by multi family properties and for operating expense (i.e.,working capital (including dividend payments)); provided that no more than $15,000,000 may be used for operating expenses. The facility is secured by the cash available in certain cash accounts maintained by the Company at VNB and the Company's pledge of its interests in the entities that own the unencumbered properties used in calculating the borrowing base. The facility matures November 2024 and bears an adjustable interest rate of 25 basis points over the prime rate, with a floor of 3.50%. The interest rate in effect as of December 31, 2021 is 3.50%. There is an unused facility fee of 0.25% per annum on the total amount committed by VNB and unused by the Company. At December 31, 2021, the Company is in compliance in all material respects with its obligations under the facility.

At December 31, 2021 and 2020, there was no outstanding balance on the facility and $35,000,000 and $15,000,000, respectively, was available to be borrowed. Interest expense for the years ended December 31, 2021 and 2020, which includes amortization of deferred financing costs and unused fees, was $101,000 and $96,000, respectively. Deferred costs of $270,000 and $12,000 are recorded in other assets on the consolidated balance sheets at December 31, 2021 and 2020, respectively.

NOTE 8—DEBT OBLIGATIONS (Continued)

Junior Subordinated Notes

At December 31, 2021 and 2020, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000 before deferred financing costs of $297,000 and $317,000, 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, 2021 and 2020 was 2.13% and 2.21% 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, 2021 and 2020, which includes amortization of deferred costs, was $845,000 and $1,119,000, respectively.