Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company has evaluated subsequent events through the date on which this Quarterly Report on Form 10-Q was filed, the date on which these financial statements were issued, and identified the items below for discussion.

Real Estate

On April 1, 2022, the Company completed the sale of the Hoffler Place for a sale price of $43.1 million.

On April 1, 2022, the Company acquired a 90% interest in Harbor Point Parcel 4, a joint venture with Beatty Development Group, for the purpose of developing a mixed-use project, which is planned to include multifamily units, retail space, and a parking garage. The Company has a projected equity commitment of $74.0 million relating to this project.

On April 11, 2022, the Company exercised its option to acquire an additional 16% of the partnership that owns Annapolis Junction Apartments, increasing its ownership to 95%.

On April 11, 2022, the Company paid a $1.1 million earn-out to its joint venture partner for Gainesville Apartments due to the receipt of the certificate of occupancy on April 8, 2022 and per the terms specified in the joint venture's operating agreement.

On April 25, 2022, the Company completed the sale of the Summit Place for a sale price of $37.8 million.

Indebtedness

On April 25, 2022, Harbor Point Parcel 3 Development, LLC, a joint venture to which we are party, entered into a construction loan agreement for $161.5 million.

On April 25, 2022, Harbor Point Parcel 4 Development, LLC, a joint venture to which we are party, entered into a construction loan agreement for $109.7 million.

In April 2022, the Company borrowed $15.0 million under the revolving credit facility.

In April 2022, the Company borrowed $1.3 million on its construction loans to fund development activities.

The Company is currently not compliant with a lease-up requirement stipulated by the syndicated loan secured by Wills Wharf. The covenant requires the property to be 75% leased, and the property is currently 70% leased. As a result, the loan administrator ordered an appraisal for the property, and in April 2022 the Company agreed to restrict $4.3 million of cash as additional collateral for the loan. The Company is currently in compliance with all covenants on its other outstanding indebtedness.

Derivative Financial Instruments

On April 7, 2022, the Company entered into a BSBY interest rate cap corridor agreement on a notional amount of $175.0 million. The Company purchased an interest rate cap at 1.0% and sold an interest rate cap at 3.0% for a net premium of $3.6 million to provide a level of protection from the effect of rising interest rates. The interest rate cap corridor will expire on February 1, 2024.