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Borrowings
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Borrowings Borrowings
Revolving Credit Facility
The following is a summary of the revolving credit facility:
$ in thousands
Maximum Facility Size(3)
Principal Outstanding Balance
IndebtednessInterest Rate
Maturity Date(2)
December 31, 2023December 31, 2022December 31, 2023December 31, 2022
Revolving Credit Facility
S + applicable margin(1)
9/5/2025$150,000 $150,000 $— $9,000 
(1)The term “S” refers to the relevant floating benchmark rate, Secured Overnight Financing Rate (“SOFR”). Borrowings under the Revolving Credit Facility carry interest at a rate equal to (i) SOFR, (ii) 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” or (3) 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. In September 2023, we entered into an amendment to the existing Revolving Credit Facility. The interest rate and spread terms remained identical to the terms outlined above. The amendment extended the maturity date to September 6, 2024 and grants an option to extend the term to September 5, 2025, subject to certain conditions. The weighted-average interest rate for the years ended December 31, 2023 and 2022 was 6.64% and 3.18%, respectively.
(2)The maturity date presented is the extended maturity date. The current maturity date is September 6, 2024 and the amendment grants an option to extend the term to September 5, 2025, subject to certain conditions.
(3)As a result of the amendment, the aggregate commitments were reduced to $100.0 million with an ability to request an increase up to $150.0 million in aggregate commitments. As of December 31, 2023, the borrowing capacity on the Revolving Credit Facility was $82.5 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.
As of December 31, 2023, we were in compliance with all loan covenants in our revolving credit facility agreement.
Mortgage Notes Payable, Net
The following table summarizes 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, 2023December 31, 2022
Cortona at Forest Park(2)
S + applicable margin(2)
6/1/2028$45,000 $— $45,000 
Bixby Kennesaw
S + applicable margin(3)
9/24/202653,000 53,000 53,000 
The Carmin (f/k/a Tempe Student Housing)
S + applicable margin(4)
1/1/202565,500 65,500 65,500 
Cortlandt Crossing3.13%3/1/202739,660 39,660 39,660 
Everly Roseland
S + applicable margin(5)
4/28/2027113,500 110,874 105,463 
Midwest Industrial Portfolio
4.44% and S + applicable margin(6)
7/5/202770,000 70,000 70,000 
Total mortgages payable339,034 378,623 
Deferred financing costs, net(2,290)(3,890)
Mortgages payable, net$336,744 $374,733 
(1)The term “S” refers to the relevant floating benchmark rate, Secured Overnight Financing Rate (“SOFR”).
(2)On November 8, 2023, the Cortona at Forest Park was sold and the mortgage note secured by the property was paid in full at the time of sale. We incurred debt extinguishment charges of $0.6 million in connection with the early repayment of the mortgage note. At the time of the sale, the mortgage note carried interest at the greater of (a) 2.65% or (b) the sum of 2.51% plus SOFR. The weighted-average interest rate for the years ended December 31, 2023 and 2022 was 7.35% and 3.82%, respectively.
(3)The mortgage note secured by Bixby Kennesaw bears interest at the sum of (i) 1.71% plus (ii) SOFR. The weighted-average interest rate for the years ended December 31, 2023 and 2022 was 6.62% and 3.18%, respectively.
(4)The mortgage note secured by The Carmin bears interest at 1.75% plus SOFR. The weighted-average interest rate for the years ended December 31, 2023 and 2022 was 6.52% and 2.78%, respectively.
(5)The mortgage note secured by Everly Roseland bears interest at 1.45% plus SOFR. The weighted-average interest rate for the years ended December 31, 2023 and 2022 was 6.48% and 4.16%, respectively.
(6)The mortgage note secured by Meridian Business 940, Capital Park 2919, 3101 Agler and Earth City 13330 (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 years ended December 31, 2023 and 2022 was 6.71% and 4.54%, respectively.
As of December 31, 2023, we are in compliance with all loan covenants in our mortgage notes.
Financing Obligation, Net
In connection with The Carmin property, as of December 31, 2023 we hold a financing obligation on our consolidated balance sheets of $53.8 million, net of debt issuance costs.
The sale and leaseback of The Carmin is accounted for as a failed sale and leaseback because the lease is classified as a finance lease. Accordingly, the sale of The Carmin is not recognized and the property continues to be included within our consolidated financial statements. We will continue to depreciate the property as if we were the legal owner. The proceeds received from the sale, net of debt issuance costs of $0.2 million, are accounted for as a financing obligation on our consolidated balance sheets. We allocate the rental payments under the lease between interest expense and principal repayment of the financing obligation using the effective interest method and amortize over the 104 year lease term. The total principal payments will not exceed the difference between the gross proceeds from the sale of $54.0 million and the initial carrying value of the land of $17.6 million, resulting in maximum principal payments of $36.4 million over the term of the arrangement.
The following table presents the future principal payments due under our outstanding borrowings as of December 31, 2023:
Year ($ in thousands)Revolving Credit FacilityMortgages PayableFinancing ObligationTotal
2024$— $— $9 $9 
2025— 65,500 9 65,509 
2026— 53,000 12 53,012 
2027— 220,534 15 220,549 
2028— — 18 18 
Thereafter— — 36,290 36,290 
Total$— $339,034 $36,353 $375,387