Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

Secured Debt

150 West 34th Street

On January 9, 2023, our $105,000,000 participation in the $205,000,000 mortgage loan on 150 West 34th Street was repaid, which reduced “other assets” and “mortgages payable, net” on our consolidated balance sheets by $105,000,000.

On October 4, 2023, we completed a $75,000,000 refinancing of 150 West 34th Street, of which $25,000,000 is recourse to the Operating Partnership. The interest-only loan bears a rate of SOFR plus 2.15% and matures in February 2025, with three one-year as-of-right extension options and an additional one-year extension option available subject to satisfying a loan-to-value test. The interest rate on the loan is subject to an interest rate cap arrangement with a SOFR strike rate of 5.00%, which matures in February 2026. The loan replaces the previous $100,000,000 loan, which bore interest at SOFR plus 1.86%.

1290 Avenue of the Americas

On June 29, 2023, we entered into a forward two-year 1.00% SOFR interest rate cap arrangement for the $950,000,000 SOFR plus 1.62% mortgage loan. We made a $63,100,000 up-front payment (of which $18,930,000 is attributable to noncontrolling interests), which is included in “other assets” on our consolidated balance sheets as of September 30, 2023. The forward cap is effective upon the November 2023 expiration of the existing 3.89% SOFR interest rate cap.

The following is a summary of our debt:

(Amounts in thousands)	Weighted Average Interest Rate as of September 30, 2023(1)		Balance as of
			September 30, 2023		December 31, 2022
Mortgages Payable:
Fixed rate		3.63%	$	3,568,650	$	3,570,000
Variable rate(2)		5.87%	2,189,565		2,307,615
Total		4.48%	5,758,215		5,877,615
Deferred financing costs, net and other			(43,454)		(48,597)
Total, net			$	5,714,761	$	5,829,018
Unsecured Debt:
Senior unsecured notes		3.02%	$	1,200,000	$	1,200,000
Deferred financing costs, net and other			(6,638)		(8,168)
Senior unsecured notes, net			1,193,362		1,191,832
Unsecured term loan		4.04%	800,000		800,000
Deferred financing costs, net and other			(5,788)		(6,807)
Unsecured term loan, net			794,212		793,193
Unsecured revolving credit facilities		3.87%	575,000		575,000
Total, net			$	2,562,574	$	2,560,025

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(1)Represents the interest rate in effect as of September 30, 2023 based on the appropriate reference rate as of the contractual reset date plus contractual spread, adjusted for hedging instruments, as applicable. See Note 15 - Fair Value Measurements for further information on our consolidated hedging instruments.

(2)As of September 30, 2023, $2,009,119 of our variable rate debt is subject to interest rate cap arrangements. The interest rate cap arrangements have a weighted average strike rate of 4.17% and a weighted average remaining term of 7 months. These amounts exclude the 1290 Avenue of the Americas interest rate cap discussed above, which is effective November 2023.