XML 30 R16.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Borrowings
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Borrowings Borrowings
Revolving Credit Facility
As of June 30, 2024 and December 31, 2023, the Company did not have an outstanding principal balance on its revolving credit facility.

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 (a) federal funds rate plus 0.5%, (b) the rate of interest as publicly announced by Bank of America N.A. as its “prime rate”, (c) SOFR with an interest period of one month plus 1.0%, or (d) 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. 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. The amendment extended the maturity date to September 6, 2024 and granted an option to extend the term to September 5, 2025, subject to certain conditions. Effective July 8, 2024, we exercised this extension right, extending the term of the Revolving Credit Facility to September 5, 2025.

The weighted-average interest rate for the three and six months ended June 30, 2024 was 7.12% and 7.11%, respectively. The weighted-average interest rate for the three and six months ended June 30, 2023 was 6.75% and 6.49%, respectively. As of June 30, 2024, the borrowing capacity on the Revolving Credit Facility was $77.7 million. The borrowing capacity is less than the difference between the current facility capacity of $100.0 million 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 June 30, 2024, 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)
Initial Maturity DateExtended Maturity DateMaximum Principal AmountJune 30, 2024December 31, 2023
Bixby Kennesaw
S + applicable margin(2)
9/24/2026 N/A$53,000 $53,000 $53,000 
The Carmin
S + applicable margin(3)
1/1/20251/1/2027$65,500 65,500 65,500 
Cortlandt Crossing3.13%3/1/2027N/A$39,660 39,660 39,660 
Everly Roseland
S + applicable margin(4)
4/28/20274/28/2029$113,500 111,134 110,874 
Midwest Industrial Portfolio
4.44% and S + applicable margin(5)
7/5/2027N/A$70,000 70,000 70,000 
Total mortgages payable339,294 339,034 
Deferred financing costs, net(1,786)(2,290)
Mortgage notes payable, net$337,508 $336,744 
(1)The term “S” refers to the relevant floating benchmark rate, SOFR.
(2)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 three and six months ended June 30, 2024 was 7.04%, respectively. The weighted-average interest rate for the three and six months ended June 30, 2023 was 6.60% and 6.29%, respectively.
(3)The mortgage note secured by The Carmin bears interest at 1.75% plus SOFR. The weighted-average interest rate for the three and six months ended June 30, 2024 was 7.07% and 7.08%, respectively. The weighted-average interest rate for the three and six months ended June 30, 2023 was 6.40% and 6.09%, respectively.
(4)The mortgage note secured by Everly Roseland bears interest at 1.45% plus SOFR. The weighted-average interest rate for the three and six months ended June 30, 2024 was 6.77% and 6.78%, respectively. The weighted-average interest rate for the three and six months ended June 30, 2023 was 6.42% and 6.21%, respectively.
(5)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 three and six months ended June 30, 2024 was 5.73%, respectively, and 5.57% and 5.44% for the three and six months ended June 30, 2023, respectively.
As of June 30, 2024, we were in compliance with all loan covenants in our mortgage note agreements.
Financing Obligation, Net
In connection with The Carmin property, as of June 30, 2024, we hold a financing obligation on our condensed consolidated balance sheets of $53.7 million, net of debt issuance costs.
The following table presents the future principal payments due under our outstanding borrowings as of June 30, 2024:
in thousands
YearRevolving Credit FacilityMortgages PayableFinancing ObligationTotal
2024 (remaining)$— $— $4 $4 
2025— 65,500 9 65,509 
2026— 53,000 12 53,012 
2027— 220,794 15 220,809 
2028— — 18 18 
2029— — 21 21 
Thereafter— — 36,270 36,270 
Total$— $339,294 $36,349 $375,643