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Borrowings (Tables)
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Revolving Credit Facility
The following is a summary of the revolving credit facility:
$ in thousands
Maximum Facility Size(2)
Principal Outstanding Balance
IndebtednessInterest RateMaturity DateSeptember 30, 2022December 31, 2021September 30, 2022December 31, 2021
Revolving Credit Facility
S + applicable margin(1)
1/22/2024$150,000 $100,000 $88,500 $75,500 
(1)The term “S” refers to the Secured Overnight Financing Rate (“SOFR”) benchmark interest rate. Borrowings under the Revolving Credit Facility carry interest at a rate equal to (i) Daily Simple SOFR, (ii) Term SOFR with an interest period of one, three or six-months, or (iii) 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 N.A. as its “prime rate”, (3) Term SOFR with an interest period of one month plus 1.0%, or (4) 1.0%, in each case, plus an applicable margin that is based on our leverage ratio. The weighted-average interest rate for the three and nine months ended September 30, 2022 was 3.73% and 2.70%, respectively.
(2)As of September 30, 2022, the borrowing capacity on the Revolving Credit Facility was $18.3 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.
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 AmountSeptember 30, 2022December 31, 2021
Cortona Apartments
L + applicable margin(2)
6/1/2028$45,000 $45,000 $45,000 
Bixby Kennesaw
L + applicable margin(3)
9/24/2026$53,000 53,000 53,000 
Tempe Student Housing
S + applicable margin(4)
1/1/2025$65,500 65,500 65,500 
Cortlandt Crossing3.13%3/1/2027$39,660 39,660 — 
Everly Roseland Apartments
S + applicable margin(5)
4/28/2027$113,500 105,372 — 
Midwest Industrial Portfolio
4.44% and S + applicable margin(6)
7/5/2027$70,000 70,000 — 
Total mortgages payable378,532 163,500 
Deferred financing costs, net(4,177)(1,847)
Mortgage notes payable, net$374,355 $161,653 
(1)The terms “L” and “S” refer to the relevant floating benchmark rates, the one-month U.S. Dollar denominated London Interbank Offered Rate (“LIBOR”) and SOFR, respectively, 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 2.40% plus one-month LIBOR. The weighted-average interest rate for the three and nine months ended September 30, 2022 was 4.12% and 3.23%, respectively.
(3)The mortgage note secured by Bixby Kennesaw bears interest at the sum of 1.60% plus one-month LIBOR. The weighted-average interest rate for the three and nine months ended September 30, 2022 was 3.81% and 2.65%, respectively.
(4)The mortgage note secured by Tempe Student Housing bears interest at 1.75% plus SOFR. The weighted-average interest rate for the three and nine months ended September 30, 2022 was 2.83% and 2.25%, respectively.
(5)The mortgage note secured by Everly Roseland Apartments bears interest at 1.45% plus SOFR. The weighted-average interest rate for the three and nine months ended September 30, 2022 was 4.06% and 3.35%, respectively.
(6)The mortgage note secured by Meridian Business 940, Grove City Industrial, 3101 Agler Road and Earth City Industrial (collectively the “Midwest Industrial Portfolio”) bears interest at two rates. Of the $70.0 million principal balance, $35.0 million bears interest at a fixed rate of 4.44%, and $35.0 million bears interest at a floating rate of the greater of (a) 2.20% or (b) the sum of 1.70% plus SOFR. The weighted-average interest rate for the three and nine months ended September 30, 2022 was 4.24% and 4.21%, respectively.
Schedule of Maturities of Long-term Debt
The following table presents the future principal payments due under our outstanding borrowings as of September 30, 2022:
Year ($ in thousands)Revolving Credit FacilityMortgages PayableFinancing ObligationTotal
2022 (remaining)$— $— $— $— 
2023— — 3 3 
202488,500 — 6 88,506 
2025— 65,500 9 65,509 
2026— 53,000 12 53,012 
2027— 215,032 15 215,047 
Thereafter— 45,000 36,309 81,309 
Total$88,500 $378,532 $36,354 $503,386