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DEBT OBLIGATIONS
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
DEBT OBLIGATIONS DEBT OBLIGATIONS
Debt obligations consist of the following (dollars in thousands):
December 31,
20242023
Mortgages payable$450,481 $426,436 
Junior subordinated notes37,400 37,400 
Credit facility— — 
Deferred loan costs (1)(4,247)(4,266)
Total debt obligations$483,634 $459,570 
________________________
(1) Excludes $374 and $289 at December 31, 2024 and 2023, respectively, of deferred fees related to our credit facility which is reflected in Other Assets.

A summary of activity in property debt, net of deferred loan fees, for the year ended December 31, 2024 is as follows (dollars in thousands):
Balance at December 31, 2023$422,427 
New mortgage27,375 
Amortization of fair value adjustment558 
Principal amortization(3,888)
Changes in deferred fees(1)
Balance at December 31, 2024$446,471 
At December 31, 2024, $450,481,000 of mortgage debt, all of which is fixed rate, with a weighted average interest rate of 4.09% and a weighted average remaining term to maturity of 6.1 years, is outstanding on 19 of the Company's multi-family properties. Scheduled principal repayments for the periods indicated are as follows (dollars in thousands):
Year Ending December 31,Scheduled Principal Payments
2025$19,860 
202674,622 
202746,190 
202840,697 
202956,272 
Thereafter212,840 
$450,481 
NOTE 9—DEBT OBLIGATIONS (continued)
The unamortized balance of acquisition related mortgage intangibles, which is included in mortgages payable in the consolidated balance sheet, was $829 at December 31, 2024 and will be amortized as follows (dollars in thousands):
Year Ending December 31,Amount
2025$501 
2026214 
2027(28)
2028— 
2029127 
Thereafter15 
Total$829 
On August 22, 2024, the Company obtained mortgage debt of $27,375,000 on its Woodland Trails - LaGrange, GA multi-family property; such mortgage debt matures in September 2031, bears an interest rate of 5.22% and is interest only for the term of the mortgage.
On February 24, 2023, the Company obtained mortgage debt of $21,173,000 on its Silvana Oaks - North Charleston, SC multi-family property; such mortgage debt matures in March 2033, bears an interest rate of 4.45% and is interest only for the term of the mortgage.
Interest expense for the years ended December 31, 2024 and 2023, which includes amortization of deferred loans fees and fair value adjustments, was $19,372,000 and $18,819,000 respectively.
Credit Facility
On July 9, 2024, the Company's credit facility, with an affiliate of Valley National Bank ("VNB"), was amended to, among other things, reduce the borrowing capacity from $60,000,000 to $40,000,000, extend the facility's maturity from September 2025 to September 2027 and revise certain financial and other covenants. The facility allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $40,000,000. The facility can be used 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 $25,000,000 may be used for operating expenses. The facility is secured by the cash available at VNB and the Company's pledge of the interests in the entities that own the properties, and matures in September 2027.
The interest rate on the credit facility, which adjusts monthly and is subject to a floor of 6.00%, equals one-month term SOFR plus 250 basis points. The interest rate in effect as of December 31, 2024 and February 28, 2025 was 6.96% and 6.83%, respectively. 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, 2024, the Company is in compliance in all material respects with its obligations under the facility.
At December 31, 2024, and February 28, 2025, there was no outstanding balance on the facility and $40,000,000 was available to be borrowed. At December 31, 2023, there was no outstanding balance of on the facility. There was no average balance outstanding on the facility for 2024 and for 2023 it was $2,811,000. Interest expense for the years ended December 31, 2024 and 2023, which includes amortization of deferred financing costs and unused fees, was $365,000 and $574,000, respectively. Deferred costs of $374,000 and $289,000 are recorded in Other Assets on the consolidated balance sheets at December 31, 2024 and 2023, respectively.
Junior Subordinated Notes
At December 31, 2024 and 2023, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000, before deferred financing costs of $237,000 and $257,000, respectively. The interest rate on the outstanding balance resets quarterly and is based on three month term SOFR + 2.26%. The rate in effect at December 31, 2024 and 2023 was 6.85% and 7.65%, respectively. The notes mature April 30, 2036.
NOTE 9—DEBT OBLIGATIONS (continued)
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, 2024 and 2023, which includes amortization of deferred costs, was $2,859,000 and $2,768,000, respectively.