XML 36 R26.htm IDEA: XBRL DOCUMENT v3.22.1
Debt (Tables)
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Summary of Mortgage Debt of Company and Encumbers Multifamily Properties

The following table contains summary information concerning the mortgage debt of the Company as of March 31, 2022 (dollars in thousands):

Operating Properties

 

Type

 

Term (months)

 

 

Outstanding

Principal (1)

 

 

Interest Rate (2)

 

 

Maturity Date

Arbors on Forest Ridge

(3)

Floating

 

 

84

 

 

$

13,130

 

 

2.13%

 

 

7/1/2024

Cutter's Point

(3)

Floating

 

 

84

 

 

 

16,640

 

 

2.13%

 

 

7/1/2024

Silverbrook

(3)

Floating

 

 

84

 

 

 

30,590

 

 

2.13%

 

 

7/1/2024

The Summit at Sabal Park

(3)

Floating

 

 

84

 

 

 

13,560

 

 

2.07%

 

 

7/1/2024

Courtney Cove

(3)

Floating

 

 

84

 

 

 

13,680

 

 

2.07%

 

 

7/1/2024

The Preserve at Terrell Mill

(3)

Floating

 

 

84

 

 

 

42,480

 

 

2.07%

 

 

7/1/2024

Versailles

(3)

Floating

 

 

84

 

 

 

23,880

 

 

2.07%

 

 

7/1/2024

Seasons 704 Apartments

(3)

Floating

 

 

84

 

 

 

17,460

 

 

2.07%

 

 

7/1/2024

Madera Point

(3)

Floating

 

 

84

 

 

 

15,150

 

 

2.07%

 

 

7/1/2024

Venue at 8651

(3)

Floating

 

 

84

 

 

 

13,734

 

 

2.23%

 

 

7/1/2024

The Venue on Camelback

(3)

Floating

 

 

84

 

 

 

28,093

 

 

2.13%

 

 

7/1/2024

Old Farm

(3)

Floating

 

 

84

 

 

 

52,886

 

 

2.13%

 

 

7/1/2024

Stone Creek at Old Farm

(3)

Floating

 

 

84

 

 

 

15,274

 

 

2.13%

 

 

7/1/2024

Timber Creek

(3)

Floating

 

 

84

 

 

 

24,100

 

 

1.71%

 

 

10/1/2025

Radbourne Lake

(3)

Floating

 

 

84

 

 

 

20,000

 

 

1.74%

 

 

10/1/2025

Sabal Palm at Lake Buena Vista

(3)

Floating

 

 

84

 

 

 

42,100

 

 

1.75%

 

 

9/1/2025

Cornerstone

(4)

Fixed

 

 

120

 

 

 

20,672

 

 

4.24%

 

 

3/1/2023

Parc500

(5)

Fixed

 

 

120

 

 

 

14,590

 

 

4.49%

 

 

8/1/2025

Hollister Place

(3)

Floating

 

 

84

 

 

 

14,811

 

 

1.79%

 

 

10/1/2025

Rockledge Apartments

(3)

Floating

 

 

84

 

 

 

68,100

 

 

2.02%

 

 

7/1/2024

Atera Apartments

(3)

Floating

 

 

84

 

 

 

29,500

 

 

1.93%

 

 

11/1/2024

Crestmont Reserve

(3)

Floating

 

 

84

 

 

 

12,061

 

 

1.63%

 

 

10/1/2025

Brandywine I & II

(3)

Floating

 

 

84

 

 

 

43,835

 

 

1.63%

 

 

10/1/2025

Bella Vista

(6)

Floating

 

 

84

 

 

 

29,040

 

 

1.77%

 

 

2/1/2026

The Enclave

(6)

Floating

 

 

84

 

 

 

25,322

 

 

1.77%

 

 

2/1/2026

The Heritage

(6)

Floating

 

 

84

 

 

 

24,625

 

 

1.77%

 

 

2/1/2026

Summers Landing

(7)

Floating

 

 

84

 

 

 

10,109

 

 

1.63%

 

 

10/1/2025

Residences at Glenview Reserve

(8)

Floating

 

 

84

 

 

 

26,270

 

 

1.89%

 

 

10/1/2025

Residences at West Place

(8)

Fixed

 

 

120

 

 

 

33,817

 

 

4.24%

 

 

10/1/2028

Avant at Pembroke Pines

(3)

Floating

 

 

84

 

 

 

177,100

 

 

1.88%

 

 

9/1/2026

Arbors of Brentwood

(3)

Floating

 

 

84

 

 

 

34,237

 

 

1.88%

 

 

10/1/2026

Torreyana Apartments

(6)

Floating

 

 

84

 

 

 

37,400

 

 

2.15%

 

 

12/1/2026

Bloom

(6)

Floating

 

 

84

 

 

 

58,850

 

 

2.15%

 

 

12/1/2026

Bella Solara

(6)

Floating

 

 

84

 

 

 

36,575

 

 

2.15%

 

 

12/1/2026

Fairways at San Marcos

(6)

Floating

 

 

84

 

 

 

46,464

 

 

2.29%

 

 

12/1/2027

The Verandas at Lake Norman

(9)

Floating

 

 

84

 

 

 

34,925

 

 

2.01%

 

 

7/1/2028

Creekside at Matthews

(9)

Floating

 

 

84

 

 

 

31,900

 

 

2.01%

 

 

7/1/2028

Six Forks Station

(10)

Floating

 

 

120

 

 

 

41,180

 

 

1.87%

 

 

10/1/2031

High House at Cary

(9)

Floating

 

 

84

 

 

 

46,625

 

 

2.17%

 

 

1/1/2029

 

 

 

 

 

 

 

 

$

1,280,765

 

 

 

 

 

 

 

Fair market value adjustment

 

 

 

 

 

 

 

 

1,009

 

(11)

 

 

 

 

 

Deferred financing costs, net of accumulated amortization of $5,433

 

 

 

 

 

 

 

 

(5,534

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,276,240

 

 

 

 

 

 

 

 

(1)

Mortgage debt that is non-recourse to the Company and encumbers the multifamily properties.

(2)

Interest rate is based on a reference rate plus an applicable margin, except for fixed rate mortgage debt. References rates used in our portfolio include one-month LIBOR and 30-Day Average Secured Overnight Financing Rate (“SOFR”). As of March 31, 2022, one-month LIBOR was 0.452% and SOFR was 0.15934%.

(3)

Loan can be pre-paid in the first 12 months of the term in certain circumstances at par plus 5.00%. Starting in the 13th month of the term through the 81st month of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term.

(4)

Debt in the amount of $18.0 million was assumed upon acquisition of this property and recorded at approximated fair value. The assumed debt carries a 4.09% fixed rate, was originally issued in March 2013, and had a term of 120 months with an initial 24 months of interest only. At the time of acquisition, the principal balance of the first mortgage remained unchanged and had a remaining term of 98 months with 2 months of interest only. The first mortgage is pre-payable and subject to yield maintenance from the 13th month through August 31, 2022 and is pre-payable at par starting on September 1, 2022 until maturity. Concurrently with the acquisition of the property, the Company placed a supplemental second mortgage on the property with a principal amount of approximately $5.8 million, a fixed rate of 4.70%, and with a maturity date that is the same time as the first mortgage. The supplemental second mortgage is pre-payable and subject to yield maintenance from the date of issuance through August 31, 2022 and is pre-payable at par starting on September 1, 2022 until maturity. As of March 31, 2022, the total indebtedness secured by the property had a blended interest rate of 4.24%.

(5)

Debt was assumed upon acquisition of this property and recorded at approximated fair value. The loan is open to pre-payment in the last four months of the term.

(6)

Loan can be pre-paid in the first 12 months of the term in certain circumstances at par plus 5.00%.  Starting in the 13th month of the term through the 81st month of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term.

(7)

Debt was assumed upon acquisition of this property and recorded at approximated fair value.  It can be pre-paid in the first 12 months of the term in certain circumstances at par plus 5.00%. Starting in the 13th month of the term through the 81st month of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term.

(8)

Debt was assumed upon acquisition of this property and recorded at approximated fair value. The loan can be prepaid at the greater of par plus 1.00% of the unpaid principal balance or the product obtained by multiplying the present value of the principal being prepaid by the excess of the monthly fixed interest rate of the loan over a daily discount rate. The loan is open to pre-payment in the last three months of the term.  

(9)

Loan can be pre-paid in the first 24 months of the term in certain circumstances at par plus 5.00%.  Starting in the 25th month of the term through the 36th month of the term, the loan can be pre-paid at par plus 2% of the unpaid principal balance. Starting in the 37th month of the term, the loan can be pre-paid at par plus 1% of the unpaid principal balance. The loan is open to pre-payment in the last three months of the term.

(10)

Loan can be pre-paid in the first 24 months of the term in certain circumstances at par plus 5.00%. Starting in the 25th month of the term through the 116th of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last four months of the term.

(11)

The Company reflected a valuation adjustment on its fixed rate debt for Parc500 and Residences at West Place to adjust it to fair market value on their respective dates of acquisition for the difference between the fair value and the assumed principal amount of debt. The difference is amortized into interest expense over the remaining terms of the mortgages.
Schedule of Credit Facility

The following table contains summary information concerning the Company’s credit facility as of March 31, 2022 (dollars in thousands):

 

 

 

Type

 

Term (months)

 

 

Outstanding

Principal

 

 

Interest Rate (1)

 

 

Maturity Date

Corporate Credit Facility

 

Floating

 

 

36

 

 

$

335,000

 

 

2.80%

 

 

6/30/2024

Deferred financing costs, net of accumulated amortization of $461

 

 

 

 

 

 

 

 

(2,021

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

332,979

 

 

 

 

 

 

 

 

(1)

Interest rate is based on Term SOFR plus an applicable margin.  Term SOFR as of March 31, 2022 was 0.3024%.

 
Schedule of Debt Maturities

Schedule of Debt Maturities

The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to March 31, 2022 are as follows (in thousands):

 

 

 

Operating

Properties

 

 

Credit Facility

 

Total

 

2022

 

$

1,040

 

 

$

—

 

$

1,040

 

2023

 

 

21,047

 

 

 

—

 

 

21,047

 

2024

 

 

394,956

 

 

 

335,000

 

 

729,956

 

2025

 

 

205,662

 

 

 

—

 

 

205,662

 

2026

 

 

423,149

 

 

 

—

 

 

423,149

 

Thereafter

 

 

234,911

 

 

 

—

 

 

234,911

 

Total

 

$

1,280,765

 

 

$

335,000

 

$

1,615,765