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Borrowings (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Schedule of Mortgage Note and Revolving Credit Facility
The following is a summary of the revolving credit facility:
$ in thousandsDecember 31, 2021
IndebtednessInterest RateMaturity Date
Maximum Facility Size (2)
Principal Outstanding Balance
Revolving Credit Facility
L + applicable margin(1)
1/22/2024$100,000 $75,500 
$ in thousandsDecember 31, 2020
IndebtednessInterest RateMaturity DateMaximum Facility SizePrincipal Outstanding Balance
Revolving Credit Facility
L + applicable margin(1)
9/22/2021$75,000 $67,700 
(1)Borrowings under the Revolving Credit Facility bear interest at a rate equal to daily adjusted one-month LIBOR or a base rate, where the base rate is the highest of (1) federal funds rate plus 0.5%, (2) the rate of interest as publicly announced by Bank of America as its “prime rate” or (3) the one-month LIBOR rate plus 1.0%, in each case, plus an applicable margin that is based on our leverage ratio. The weighted-average interest rate for the years ended December 31, 2021 and 2020, was 1.72% and 2.00%, respectively.
(2)As of December 31, 2021, the borrowing capacity on the Revolving Credit Facility is $20.1 million. The borrowing capacity is less than the difference between the maximum facility size and the current principal outstanding balance as the calculation of borrowing capacity is limited by the aggregate fair value and cash flows of our unencumbered properties. On January 21, 2022, we entered into an amendment for our Revolving Credit Facility which increased our maximum facility size from $100 million to $150 million and converted the benchmark interest rate for all outstanding borrowings from daily adjusted one-month LIBOR to Term SOFR with a borrowing period of one month.
The following table summarize certain characteristics of our mortgage notes that are secured by the Company’s properties:
$ in thousandsPrincipal Balance Outstanding
Indebtedness
Interest Rate(1)
Maturity DateMaximum Principal AmountDecember 31, 2021December 31, 2020
Cortona Apartments
L + applicable margin(2)
6/1/2028$45,000 $45,000 $— 
Bixby Kennesaw
L + applicable margin(3)
9/24/202653,000 53,000 — 
Tempe Student Housing
L + applicable margin(4)
1/01/202565,500 65,500 — 
Total mortgages payable163,500 — 
Deferred financing costs, net(1,847)— 
Mortgages payable, net$161,653 $— 
(1)The term “L” refers to the relevant floating benchmark rates, which include USD LIBOR and SOFR, as applicable to each loan. The mortgage agreements that utilize LIBOR contain LIBOR replacement language.
(2)The mortgage note secured by the Cortona Apartments bears interest at the greater of (a) 2.65% or (b) the sum of (i) 2.40% plus (ii) one-month LIBOR. The weighted-average interest rate for the year ended December 31, 2021 was 2.65%.
(3)The mortgage note secured by Bixby Kennesaw bears interest at the sum of (i) 1.60% plus (ii) one-month LIBOR. The weighted-average interest rate for the year ended December 31, 2021 was 1.69%.
(4)The mortgage note secured by Tempe Student Housing bears interest at (i) 1.75% plus (ii) 30-Day SOFR Average as published on the website of the Federal Reserve Bank of New York. The weighted-average interest rate for the year ended December 31, 2021 was 1.80%.
Schedule of Maturities of Long-term Debt
The following table presents the future principal payments due under our outstanding borrowings as of December 31, 2021:
Year ($ in thousands)Revolving Credit FacilityMortgages PayableFinancing ObligationTotal
2022$— $— $— $— 
2023— — 3 3 
202475,500 — 6 75,506 
2025— 65,500 9 65,509 
2026— 53,000 12 53,012 
Thereafter— 45,000 36,324 81,324 
Total$75,500 $163,500 $36,354 $275,354