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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments
 
The Company may enter into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of interest rate derivatives in the condensed consolidated statements of income. For derivatives that qualify as cash flow hedges, the effective portion of the gain or loss is reported as a component of other comprehensive loss and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings.

On February 1, 2017, the North Point Center Note 5 was paid in full, which terminated the interest rate swap agreement associated with the note. The loss on the interest rate swap agreement was not significant.

On February 7, 2017, the Operating Partnership entered into a LIBOR interest rate cap agreement on a notional amount of
$50.0 million at a strike rate of 1.50% for a premium of less than $0.2 million. The interest rate cap agreement expires on March 1, 2019.

On June 23, 2017, the Operating Partnership entered into a LIBOR interest rate cap agreement on a notional amount of $50.0 million at a strike rate of 1.50% for a premium of less than $0.2 million. The interest rate cap agreement expires on July 1, 2019.

On September 18, 2017, the Operating Partnership entered into a LIBOR interest rate cap agreement on a notional amount of $50.0 million at a strike rate of 1.50% for a premium of less than $0.2 million. The interest rate cap agreement expires on October 1, 2019.
 
The Company’s derivatives were comprised of the following as of September 30, 2017 and December 31, 2016 (in thousands): 
 
 
September 30, 2017
 
December 31, 2016
 
 
(Unaudited)
 
 
 
 
 
 
 
 
Notional
Amount
 
Fair Value
 
Notional
Amount
 
Fair Value
 
 
 
 
Asset
 
Liability
 
 
 
Asset
 
Liability
Interest rate swaps
 
$
56,124

 
$
10

 
$
(447
)
 
$
56,901

 
$
—

 
$
(829
)
Interest rate caps
 
370,000

 
707

 
—

 
270,000

 
259

 
—

Total
 
$
426,124

 
$
717

 
$
(447
)
 
$
326,901

 
$
259

 
$
(829
)


The changes in the fair value of the Company’s derivatives during the three and nine months ended September 30, 2017 and 2016 were comprised of the following (in thousands): 
 
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
(Unaudited)
Interest rate swaps
 
$
124

 
$
481

 
$
392

 
$
(2,007
)
Interest rate caps
 
(37
)
 
17

 
(92
)
 
(257
)
Total change in fair value of interest rate derivatives
 
$
87

 
$
498

 
$
300

 
$
(2,264
)