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Borrowings
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Borrowings Borrowings
Revolving Credit Facility
In September 2023, INREIT OP entered into an amendment to the existing Revolving Credit Facility with Bank of America, N.A. (“Bank of America”). The interest rate and spread terms remained identical to the terms outlined below. 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. In July 2024, we exercised this extension right, extending the term of the Revolving Credit Facility to September 5, 2025. On October 11, 2024, we entered into a fifth amendment to the Revolving Credit Facility to provide for, among other things, a reduction in borrowing limitations from properties in the Company's DST Program in exchange for an incremental commitment by Invesco Realty, Inc. to provide up to $35.0 million of capital to the Company to repay outstanding obligations under the Revolving Credit Facility in the event of default, but is not available to fund our operating or investing activities.
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.
As of September 30, 2024 and December 31, 2023, the Company did not have an outstanding principal balance on its revolving credit facility. The weighted-average interest rate for the three and nine months ended September 30, 2024 was 7.08% and 7.10%, respectively. The weighted-average interest rate for the three and nine months ended September 30, 2023 was 6.99% and 6.62%, respectively. As of September 30, 2024, the borrowing capacity on the Revolving Credit Facility was $75.3 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 September 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 Date
Extended Maturity Date(6)
Maximum Principal AmountSeptember 30, 2024December 31, 2023
Bixby Kennesaw
S + 1.71%(2)
9/24/2026 N/A$53,000 $53,000 $53,000 
The Carmin
S + 1.75%(3)
1/1/20251/1/2027$65,500 65,500 65,500 
Cortlandt Crossing
3.13%
3/1/2027N/A$39,660 39,660 39,660 
Everly Roseland
S + 1.45%(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(1,533)(2,290)
Mortgage notes payable, net$337,761 $336,744 
(1)The term “S” refers to the relevant floating benchmark rate, SOFR.
(2)The weighted-average interest rate for the three and nine months ended September 30, 2024 was 7.03% and 7.04%, respectively. The weighted-average interest rate for the three and nine months ended September 30, 2023 was 6.87% and 6.48%, respectively.
(3)The weighted-average interest rate for the three and nine months ended September 30, 2024 was 7.09% and 7.08%, respectively. The weighted-average interest rate for the three and nine months ended September 30, 2023 was 6.81% and 6.33%, respectively.
(4)The weighted-average interest rate for the three and nine months ended September 30, 2024 was 6.75% and 6.77%, respectively. The weighted-average interest rate for the three and nine months ended September 30, 2023 was 6.70% and 6.38%, 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 nine months ended September 30, 2024 was 5.71% and 5.73%, respectively, and 5.66% and 5.62% for the three and nine months ended September 30, 2023, respectively.
(6)We may elect to extend the maturity date upon meeting certain conditions, which may include payment of a non-refundable extension fee.
As of September 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 September 30, 2024, we hold a financing obligation on our condensed consolidated balance sheets of $53.7 million, net of debt issuance costs.
The following table presents the future principal payments due under our outstanding borrowings as of September 30, 2024:
in thousands
YearRevolving Credit FacilityMortgages PayableFinancing ObligationTotal
2024 (remaining)$— $— $2 $2 
2025— 65,500 9 65,509 
2026— 53,000 12 53,012 
2027— 220,794 15 220,809 
2028— — 18 18 
2029— — 21 21 
Thereafter— — 36,270 36,270 
Total$— $339,294 $36,347 $375,641