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Borrowings
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Borrowings Borrowings
The following table presents the Company’s borrowings (dollars in thousands):
June 30, 2020 (Unaudited)December 31, 2019
Recourse vs. Non-RecourseFinal
Maturity
Contractual
Interest Rate(1)
Principal
Amount(2)
Carrying
Value(2)
Principal
Amount(2)
Carrying
Value(2)
Mortgage notes payable, net
Watermark Aqua Portfolio
Denver, CONon-recourseFeb 2021LIBOR + 2.92% $20,424  $20,398  $20,547  $20,500  
Frisco, TXNon-recourseMar 2021LIBOR + 3.04% 18,991  18,967  19,170  19,127  
Milford, OHNon-recourseSep 2026LIBOR + 2.68% 18,760  18,390  18,760  18,357  
Rochester Portfolio
Rochester, NYNon-recourseFeb 20254.25%19,907  19,818  20,228  20,131  
Rochester, NY(3)
Non-recourseAug 2027LIBOR + 2.34%101,224  100,324  101,224  100,267  
Rochester, NYNon-recourseAug 2021LIBOR + 2.90% 12,800  12,403  12,800  12,232  
Arbors Portfolio(4)
Various locationsNon-recourseFeb 20253.99%88,438  87,547  89,026  88,020  
Watermark Fountains Portfolio(5)
Various locationsNon-recourseJun 20223.92%389,886  388,509  392,269  390,508  
Various locationsNon-recourseJun 20225.56%73,880  73,522  74,208  73,750  
Winterfell Portfolio(6)
Various locationsNon-recourseJun 20254.17%628,303  612,225  632,024  614,415  
Avamere Portfolio(7)
Various locationsNon-recourseFeb 20274.66%70,996  70,492  71,464  70,922  
Subtotal mortgage notes payable, net$1,443,609  $1,422,595  $1,451,720  $1,428,229  
Other notes payable
Oak Cottage
Santa Barbara, CANon-recourseFeb 20226.00%3,914  3,914  3,693  3,693  
Subtotal other notes payable, net$3,914  $3,914  $3,693  $3,693  
Total mortgage and other notes payable, net$1,447,523  $1,426,509  $1,455,413  $1,431,922  
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(1)Floating rate borrowings are comprised of $172.2 million principal amount at one-month London Interbank Offered Rate (“LIBOR”).
(2)The difference between principal amount and carrying value of mortgage notes payable is attributable to deferred financing costs, net for all borrowings, other than the Winterfell portfolio which is attributable to below market debt intangibles.
(3)Comprised of seven individual mortgage notes payable secured by seven healthcare real estate properties, cross-collateralized and subject to cross-default.
(4)Comprised of four individual mortgage notes payable secured by four healthcare real estate properties, cross-collateralized and subject to cross-default.
(5)Includes $389.9 million principal amount of fixed rate borrowings, secured by 14 healthcare real estate properties, cross-collateralized and subject to cross-default, as well as a supplemental financing totaling $73.9 million of principal, secured by seven healthcare real estate properties, cross-collateralized and subject to cross-default.
(6)Comprised of 32 individual mortgage notes payable secured by 32 healthcare real estate properties, cross-collateralized and subject to cross-default.
(7)Comprised of five individual mortgage notes payable secured by five healthcare real estate properties, cross-collateralized and subject to cross-default.
The following table presents future scheduled principal payments on borrowings based on final maturity (dollars in thousands):
July 1 to December 31, 2020$15,655  
   Years Ending December 31:
202176,154  
2022466,725  
202319,056  
202419,778  
Thereafter850,155  
Total$1,447,523  
As of June 30, 2020, the operating performance of a property within the Company’s Rochester portfolio did not maintain certain minimum financial coverage ratios required under the contractual terms of its mortgage note, which resulted in a default. In July 2020, the Company entered into a forbearance agreement to defer up to 90 days of interest payments and 120 days of principal payments and temporarily waive financial covenants under the mortgage note.
As of June 30, 2020, the tenant for the Arbors portfolio failed to remit rent timely and comply with other contractual terms of its lease agreement, which resulted in a default under the tenant’s lease, which in turn, resulted in a default under the mortgage notes collateralized by the properties. The Company is currently in discussions with the tenant regarding the lease default.
In response to the operational challenges resulting from the COVID-19 pandemic, the Company entered into forbearance agreements effective May 1, 2020 to defer up to 90 days of contractual debt service for borrowings on properties within the Aqua, Rochester, Arbors, Winterfell and Fountains portfolios. The aggregate outstanding principal amount of these borrowings totaled $1.3 billion as of June 30, 2020. The deferred debt service must be repaid over the 12 months following the forbearance period with no additional interest or penalties incurred by the Company, subject to satisfaction of certain conditions. Refer to Note 14, “Subsequent Events” for additional information regarding the Company’s borrowings and lender forbearance in response to the COVID-19 pandemic.
Line of Credit - Related Party
In October 2017, the Company obtained a revolving line of credit from an affiliate of Colony Capital, the Sponsor, for up to $15.0 million at an interest rate of 3.5% plus LIBOR (the “Sponsor Line”). The Sponsor Line had an initial one year term, with an extension option of six months.
In November 2017, the borrowing capacity under the Sponsor Line was increased to $35.0 million. In March 2018, the Sponsor Line maturity date was extended through December 2020, and in May 2019, the maturity date was further extended through December 2021. In July 2020, the maturity date was extended through December 2022.
In April 2020, the Company borrowed $35.0 million under the Sponsor Line to improve its liquidity position as a result of the COVID-19 pandemic.