Mortgage Notes Payable:

Mortgage notes payable at December 31, 2017 and 2016 consist of the following:



	Carrying Amount of Mortgage Notes(1)
	2017				2016				Effective Interest Rate(2)		Monthly Debt Service(3)	Maturity Date(4)
Property Pledged as Collateral	Related Party		Other		Related Party		Other		Effective Interest Rate(2)		Monthly Debt Service(3)	Maturity Date(4)
Chandler Fashion Center(5)	—		199,904		—		199,833		3.77	%	625	2019
Danbury Fair Mall	104,599		104,598		107,929		107,928		5.53	%	1,538	2020
Fashion Outlets of Chicago(6)	—		199,298		—		198,966		3.02	%	477	2020
Fashion Outlets of Niagara Falls USA	—		112,770		—		115,762		4.89	%	727	2020
Freehold Raceway Mall(5)(7)	—		398,050		—		220,643		3.94	%	1,300	2029
Fresno Fashion Fair	—		323,261		—		323,062		3.67	%	971	2026
Green Acres Commons(8)	—		107,219		—		—		4.07	%	322	2021
Green Acres Mall	—		291,366		—		297,798		3.61	%	1,447	2021
Kings Plaza Shopping Center	—		447,231		—		456,958		3.67	%	2,229	2019
Northgate Mall(9)	—		—		—		63,434
Oaks, The	—		196,732		—		201,235		4.14	%	1,064	2022
Pacific View	—		124,397		—		127,311		4.08	%	668	2022
Queens Center	—		600,000		—		600,000		3.49	%	1,744	2025
Santa Monica Place(10)	—		296,366		—		219,564		3.13	%	706	2022
SanTan Village Regional Center	—		124,703		—		127,724		3.14	%	589	2019
Stonewood Center(11)	—		—		—		99,520
Towne Mall	—		21,161		—		21,570		4.48	%	117	2022
Tucson La Encantada	66,970		—		68,513		—		4.23	%	368	2022
Victor Valley, Mall of	—		114,617		—		114,559		4.00	%	380	2024
Vintage Faire Mall	—		263,818		—		269,228		3.55	%	1,256	2026
Westside Pavilion	—		141,020		—		143,881		4.49	%	783	2022
	$	171,569	$	4,066,511	$	176,442	$	3,908,976


(1)	The mortgage notes payable balances include the unamortized debt premiums. Debt premiums represent the excess of the fair value of debt over the principal value of debt assumed in various acquisitions and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method.

The debt premiums as of December 31, 2017 and 2016 consist of the following:



Property Pledged as Collateral	2017		2016
Fashion Outlets of Niagara Falls USA	$	2,630	$	3,558
Stonewood Center	—		2,349
	$	2,630	$	5,907

The mortgage notes payable balances also include unamortized deferred finance costs that are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. Unamortized deferred finance costs were $17,838 and $12,716 at December 31, 2017 and 2016, respectively.


(2)	The interest rate disclosed represents the effective interest rate, including the debt premiums and deferred finance costs.


(3)	The monthly debt service represents the payment of principal and interest.


(4)	The maturity date assumes that all extension options are fully exercised and that the Company does not opt to refinance the debt prior to these dates. These extension options are at the Company's discretion, subject to certain conditions, which the Company believes will be met.


(5)	A 49.9% interest in the loan has been assumed by a third party in connection with a co-venture arrangement (See Note 11—Co-Venture Arrangement).


(6)	The loan bears interest at LIBOR plus 1.50% and matures on March 31, 2020. At December 31, 2017 and 2016, the total interest rate was 3.02% and 2.43%, respectively.


(7)	On October 19, 2017, the joint venture replaced the existing loan on the property with a new $400,000 loan that bears interest at an effective rate of 3.94% and matures on November 1, 2029.


(8)	On September 29, 2017, the Company placed a new $110,000 loan on the property that bears interest at LIBOR plus 2.15% and matures on March 29, 2021. The loan can be expanded, depending on certain conditions, up to $130,000. At December 31, 2017, the total interest rate was 4.07%.


(9)	On January 18, 2017, the loan was paid off in connection with sale of the underlying property (See Note 15—Dispositions).

(10)

On December 4, 2017, the Company replaced the existing loan on the property with a new $300,000 loan that bears interest at LIBOR plus 1.35% and matures on December 9, 2019 with three one-year extension options. The loan is covered by an interest rate cap agreement that effectively prevents LIBOR from exceeding 4.00% (See Note 5—Derivative Instruments and Hedging Activities). At December 31, 2017 the total interest rate was 3.13%.


(11)	On November 1, 2017, the Company paid off the loan on the property.

Most of the mortgage loan agreements contain a prepayment penalty provision for the early extinguishment of the debt.

As of December 31, 2017, all of the Company's mortgage notes payable are secured by the properties on which they are placed and are non-recourse to the Company.

Total interest expense capitalized during the years ended December 31, 2017, 2016 and 2015 was $13,160, $10,316 and $13,052, respectively.

Related party mortgage notes payable are amounts due to affiliates of NML. See Note 18—Related Party Transactions for interest expense associated with loans from NML.

The estimated fair value (Level 2 measurement) of mortgage notes payable at December 31, 2017 and 2016 was $4,250,816 and $4,126,819, respectively, based on current interest rates for comparable loans. Fair value was determined using a present value model and an interest rate that included a credit value adjustment based on the estimated value of the property that serves as collateral for the underlying debt.

The future maturities of mortgage notes payable are as follows:



Year Ending December 31,
2018	$	49,800
2019	796,591
2020	528,456
2021	401,733
2022	802,552
Thereafter	1,674,156
	4,253,288
Debt premium	2,630
Deferred finance cost, net	(17,838		)
	$	4,238,080

The future maturities reflected above reflect the extension options that the Company believes will be exercised.