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Borrowings (Tables)
 6 Months Ended
Jun. 30, 2023
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 DateJune 30, 2023December 31, 2022June 30, 2023December 31, 2022
Revolving Credit Facility
S + applicable margin(1)
1/22/2024$150,000 $150,000 $17,900 $9,000 
(1)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 six months ended June 30, 2023 was 6.75% and 6.49%, respectively. The weighted-average interest rate for the three and six months ended June 30, 2022 was 2.41% and 2.22%, respectively.
(2)As of June 30, 2023, the borrowing capacity on the Revolving Credit Facility was $73.8 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 AmountJune 30, 2023December 31, 2022
Cortona Apartments
L + applicable margin(2)
6/1/2028$45,000 $45,000 $45,000 
Bixby Kennesaw
S + 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 39,660 
Everly Roseland Apartments
S + applicable margin(5)
4/28/2027$113,500 107,179 105,463 
Midwest Industrial Portfolio
4.44% and S + applicable margin(6)
7/5/2027$70,000 70,000 70,000 
Total mortgages payable380,339 378,623 
Deferred financing costs, net(3,233)(3,890)
Mortgage notes payable, net$377,106 $374,733 
(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 agreement that utilizes LIBOR contains 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 six months ended June 30, 2023 was 7.25% and 7.01%, respectively. The weighted-average interest rate for the three and six months ended June 30, 2022 was 2.90% and 2.78%, respectively. On June 30, 2023, LIBOR ceased being published. In connection with the cessation of LIBOR, the one month LIBOR interest rate under this mortgage note was modified to One Month Term SOFR plus a spread adjustment of 0.11448%, effective on and after June 1, 2023.
(3)The mortgage note secured by Bixby Kennesaw bears interest at the sum of (i) 1.00% plus (ii) Daily Compounding SOFR. The weighted-average interest rate for the three and six months ended June 30, 2023 was 6.60% and 6.29%, respectively. The weighted-average interest rate for the three and six months ended June 30, 2022 was 2.37% and 2.06%, 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 six months ended June 30, 2023 was 6.40% and 6.09%, respectively. The weighted-average interest rate for the three and six months ended June 30, 2022 was 2.11% and 1.96%, 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 six months ended June 30, 2023 was 6.42% and 6.21%, respectively. The weighted-average interest rate for the three and six months ended June 30, 2022 was 2.33%.
(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 of the combined $70.0 million principal balance for the three and six months ended June 30, 2023 was 5.57% and 5.44%, respectively. The weighted-average interest rate for the three and six months ended June 30, 2022 was 3.84%.
Schedule of Maturities of Long-term Debt
The following table presents the future principal payments due under our outstanding borrowings as of June 30, 2023:
Year ($ in thousands)Revolving Credit FacilityMortgages PayableFinancing ObligationTotal
2023 (remaining)$— $— $3 $3 
202417,900 — 6 17,906 
2025— 65,500 9 65,509 
2026— 53,000 12 53,012 
2027— 216,839 15 216,854 
2028— 45,000 18 45,018 
Thereafter— — 36,291 36,291 
Total$17,900 $380,339 $36,354 $434,593