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Derivative Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Floating to Fixed Interest Rate Swaps
As of September 30, 2024, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):
Related DebtNotional AmountIndexSwap Fixed Rate
Debt Effective Rate
Effective DateExpiration Date
Harbor Point Parcel 3 senior construction loan$90,000 
(a)
1-month SOFR2.75 %4.82 %10/2/202310/1/2025
Floating rate pool of loans 330,000 
(b)
1-month SOFR2.75 %4.33 %10/1/202310/1/2025
Harbor Point Parcel 4 senior construction loan100,000 
(c)
1-month SOFR2.75 %5.12 %11/1/202311/1/2025
Floating rate pool of loans 300,000 
(d)
1-month SOFR2.75 %4.33 %12/1/202312/1/2025
Revolving credit facility and TD unsecured term loan
100,000 
(e)
Daily SOFR3.20 %4.84 %5/19/20235/19/2026
Thames Street Wharf loan
66,819 
(f)
Daily SOFR0.93 %2.33 %9/30/20219/30/2026
M&T unsecured term loan100,000 
(f)
1-month SOFR3.50 %5.05 %12/6/202212/6/2027
Liberty Retail & Apartments loan
21,000 
(g)
1-month SOFR
3.43 %4.93 %12/13/20221/21/2028
Senior unsecured term loan79,000 
(g)
1-month SOFR3.43 %4.98 %12/13/20221/21/2028
Total$1,186,819 
________________________________________
(a) This interest rate swap agreement reduces the Company's interest rate exposure on the $180.4 million senior construction loan secured by the Company's Harbor Point Parcel 3 equity method investment as described in Note 6. As such, the loan is not reflected on the Company's consolidated balance sheets. The Company also paid $3.6 million to reduce the swap fixed rate in the period in which it was purchased.
(b) The Company paid $13.3 million to reduce the swap fixed rate in the period in which it was purchased.
(c) This interest rate swap agreement reduces the Company's interest rate exposure on the $109.7 million senior construction loan secured by the Company's Harbor Point Parcel 4 equity method investment as described in Note 6. As such, the loan is not reflected on the Company's consolidated balance sheets. The Company also paid $3.9 million to reduce the swap fixed rate in the period in which it was purchased.
(d) The Company paid $10.5 million to reduce the swap fixed rate in the period in which it was purchased.
(e) Subject to cancellation by the counterparty beginning on May 1, 2025 and the first day of each month thereafter.
(f) Designated as a cash flow hedge.
(g) The Company novated an existing 3.43% fixed rate swap with a $100.0 million notional and assigned (A) $11.1 million notional to the loan secured by Market at Mill Creek, effective April 17, 2024 and (B) $21.0 million to the loan secured by Liberty Retail & Apartments, effective February 1, 2024. Once the Market at Mill Creek loan was repaid, the $67.9 million swap on the senior unsecured loan increased to $79.0 million.
Schedule of Derivatives
The Company’s derivatives were comprised of the following as of September 30, 2024 and December 31, 2023 (in thousands): 
 September 30, 2024December 31, 2023
 Notional
Amount
Fair ValueNotional
Amount
Fair Value
 AssetLiability AssetLiability
Derivatives not designated as accounting hedges
Interest rate swaps$1,020,000 $9,157 $(505)$1,020,000 $20,761 $— 
Total derivatives not designated as accounting hedges1,020,000 9,157 (505)1,020,000 20,761 — 
Derivatives designated as accounting hedges
Interest rate swaps166,819 3,091 (621)667,894 7,141 — 
Interest rate caps— — — 98,269 960 — 
Total derivatives$1,186,819 $12,248 $(1,126)$1,786,163 $28,862 $— 
Schedule of Changes in Fair Value of Derivatives
The unrealized changes in the fair value of the Company’s derivatives during the three and nine months ended September 30, 2024 and 2023 were comprised of the following (in thousands): 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Interest rate swaps$(20,018)$4,952 $(10,943)$12,188 
Interest rate caps(1)20 22 (346)
Total unrealized change in fair value of interest rate derivatives$(20,019)$4,972 $(10,921)$11,842 
Comprehensive income statement presentation:
Change in fair value of derivatives and other
$(16,669)$1,484 $(12,109)$1,974 
Unrealized cash flow hedge gains(3,350)3,488 1,188 9,868 
Total unrealized change in fair value of interest rate derivatives$(20,019)$4,972 $(10,921)$11,842