Debt Financing (Tables)

12 Months Ended

Dec. 31, 2019

The following table describes the Company’s debt outstanding at December 31, 2019 and 2018 (in thousands, except interest rates):



Description	Origination or Assumption Date	Maturity Date	Maximum Capacity in Functional Currency		Interest Rate Description	Interest Rate as of December 31, 2019	Principal Outstanding at December 31, 2019				Principal Outstanding at December 31, 2018
Secured Mortgage Debt
Bishop's Square	3/3/2015	3/2/2022	€	55,200	Euribor + 1.30% ⁽¹⁾	1.30%	$	61,907			$	63,171
Domain Apartments	1/29/2016	1/29/2020	$	34,300	Libor + 1.60%⁽¹⁾	3.36%	34,300			⁽²⁾	34,300
Cottonwood Corporate Center	7/5/2016	8/1/2023	$	78,000	Fixed	2.98%	72,359				74,110
Goodyear Crossing II	8/18/2016	8/18/2021	$	29,000	Libor + 2.00%	3.71%	29,000			⁽³⁾	29,000
Rookwood Commons	1/6/2017	7/1/2020	$	67,000	Fixed	3.13%	67,000				67,000
Rookwood Pavilion	1/6/2017	7/1/2020	$	29,000	Fixed	2.87%	29,000				29,000
Montrose Student Residences	3/24/2017	3/23/2022	€	22,605	Euribor + 1.85% ⁽¹⁾	1.85%	25,352				25,869
Queen's Court Student Residences	12/18/2017	12/18/2022	£	29,500	Libor + 2.00%⁽¹⁾	2.75%	38,896				37,565
Venue Museum District	9/21/2018	10/9/2020	$	45,000	Libor + 1.95% ⁽¹⁾	4.02%	45,000				45,000
Fresh Park Venlo	10/3/2018	8/15/2023	€	75,000	Euribor + 1.50% ⁽¹⁾	1.50%	84,092				85,809
Maintal Logistics	2/21/2019	2/28/2024	€	23,500	Euribor + 1.10% ⁽¹⁾	1.10%	26,136				—
ABC Westland	5/3/2019	2/15/2024	€	75,000	Euribor + 1.50%⁽¹⁾	1.50%	82,655				—
Łódź Urban Logistics	9/20/2019	9/20/2024	€	13,600	Fixed ⁽³⁾	1.05%	15,211				—
Glasgow West End	9/26/2019	9/26/2024	£	43,200	Libor + 1.80%⁽¹⁾	2.55%	56,959				—
Gdańsk PL II	10/4/2019	9/20/2024	€	16,800	Fixed⁽⁴⁾	1.05%	18,790				—
Other Notes Payable
JPMorgan Chase Revolving Credit Facility	9/13/2019	11/15/2022	$	275,000	Variable	3.34%	$	104,000			$	—
Notes Payable							$	790,657			$	490,824
Affiliate Note Payable
Credit Facility with Hines	10/2/2017	12/31/2020	$	75,000	Variable	3.29%	75,000				55,000
Total Note Payable to Affiliate							$	75,000			$	55,000
Total Principal Outstanding							$	865,657			$	545,824
Unamortized discount ⁽⁵⁾							(104		)		(316		)
Unamortized financing fees ⁽⁶⁾							(4,126		)		(3,069		)
Total							$	861,427			$	542,439


(1)	On the loan origination date, the Company entered into an interest rate cap agreement as an economic hedge against the variability of future interest rates on this borrowing. See Note 6 — Derivative Instruments for further details.


(2)	As of December 31, 2019, this amount was included in liabilities associated with assets held for sale. In January 2020 the Company paid off the outstanding balance using proceeds from the sale of the Domain Apartments, which occurred in January 2020. See Note 14 — Subsequent Events for further details on the disposition of Domain Apartments.


(3)	In February 2020 the Company paid off the outstanding balance using proceeds from the sale of Goodyear Crossing, which occurred in February 2020. See Note 14 — Subsequent Events for further details on the disposition of Goodyear Crossing.


(4)	On the loan origination date, the Company entered into an interest rate swap contract effectively fixing the interest rate for the full term of the facility. See Note 6 — Derivative Instruments for further details.


(5)	The Company assumed notes payable in connection with its acquisition of Rookwood, which were recorded at the estimated fair value as of the date of acquisition. The difference between the fair value at acquisition and the principal outstanding is amortized over the term of the related notes.


(6)	Deferred financing costs consist of direct costs incurred in obtaining debt financing. These costs are presented as a direct

reduction from the related debt liability for permanent mortgages and presented as an asset for revolving credit arrangements. In total, deferred financing costs had a carrying value of $6.4 million and $3.1 million for the years ended December 31, 2019 and 2018. These costs are amortized into interest expense on a straight-line basis, which approximates the effective interest method, over the terms of the obligations. For the years ended December 31, 2019, 2018 and 2017, $1.4 million, $0.6 million and $0.3 million of deferred financing costs were amortized into interest expense in the accompanying consolidated statement of operations, respectively.

Schedule Of Maturities Of Long Term Debt

The Company is required to make the following principal payments on its outstanding notes payable for each of the years ending December 31, 2020 through December 31, 2024 and for the period thereafter (in thousands).



	Payments Due by Year
	2020			2021			2022		2023		2024		Thereafter
Principal payments	$	255,625	⁽¹⁾	$	34,379	⁽²⁾	$	235,589	$	154,393	$	185,671	$	—


(1)	Includes Domain Apartments debt of $34.3 million that was paid off in January 2020 using proceeds from the sale of the Domain Apartments, which occurred in January 2020. See Note 14 — Subsequent Events for further details on the disposition of Domain Apartments.

(2)

Includes Goodyear Crossing II debt of $29.0 million that was paid off in February 2020 using proceeds from the sale of Goodyear Crossing II, which occurred in February 2020. See Note 14 — Subsequent Events for further details on the disposition of Goodyear Crossing II.