Subsequent Events

3 Months Ended

Mar. 31, 2023

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.

Notes Receivable

On May 4, 2023, the Company entered into a contribution agreement with an unrelated third party to acquire a mixed-use property known as The Interlock for a purchase price of approximately $215 million. The Company expects to finance the transaction using $100 million of new fixed-rate financing (primarily through a $75 million unsecured term loan), the conversion of its existing mezzanine loan into equity, and the issuance of Class A units to the sponsor developer.

Indebtedness

Effective April 3, 2023, the Company transitioned the $69.0 million loan secured by Thames Street Wharf to SOFR. The modified loan bears interest at a rate of SOFR plus a spread of 1.30% and a credit spread adjustment of 0.10%.

Effective April 3, 2023, the Company transitioned the $175.0 million loan secured by the Constellation Energy Building to SOFR. The modified loan bears interest at a rate of SOFR plus a spread of 1.50% and a credit spread adjustment of 0.11%.

Derivative Financial Instruments

Effective April 3, 2023, the Company terminated the 1.05% BSBY interest rate swap with a notional amount of $69.0 million and entered into an interest rate swap agreement with a notional amount of $69.0 million and a SOFR rate of 0.93%. The interest rate swap will expire on September 30, 2026. The Company did not pay a premium for this transaction.

Effective April 4, 2023, the Company terminated the 4.00% BSBY interest rate cap with a notional amount of $175.0 million and the BSBY corridor of 1.00%-3.00% with a notional amount of $175.0 million and, effective April 3, 2023, entered into an interest rate swap agreement with a notional amount of $175.0 million and a SOFR rate of 1.84%. The interest rate swap will expire on February 1, 2024. The Company did not pay a premium for this transaction.

On May 4, 2023, the Company entered into an interest rate swap agreement with a notional amount of $100.0 million and a SOFR rate of 3.20%. The interest rate swap will expire on May 19, 2026, unless canceled at the option of the counterparty, which cancellation can occur no earlier than May 1, 2025. The Company did not pay a premium for this transaction.

Equity

On April 3, 2023, in connection with the tender by a holder of Class A Units of 51,000 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption request with a cash payment of $0.6 million.

On May 8, 2023, the Company announced that its board of directors declared a cash dividend of $0.195 per common share for the second quarter of 2023. The second quarter dividend will be payable in cash on July 6, 2023 to stockholders of record on June 28, 2023.

On May 8, 2023, the Company announced that its board of directors declared a cash dividend of $0.421875 per share of Series A Preferred Stock for the second quarter of 2023. The dividend will be payable in cash on July 14, 2023 to stockholders of record on July 3, 2023.