Mortgage Notes Payable:

Mortgage notes payable at March 31, 2019 and December 31, 2018 consist of the following:



	Carrying Amount of Mortgage Notes(1)
Property Pledged as Collateral	March 31, 2019		December 31, 2018		Effective Interest Rate(2)		Monthly Debt Service(3)		Maturity Date(4)
Chandler Fashion Center(5)	$	199,989	$	199,972	3.77	%	$	625	2019
Danbury Fair Mall	200,336		202,158		5.53	%	1,538		2020
Fashion Outlets of Chicago(6)	299,055		199,622		4.61	%	1,145		2031
Fashion Outlets of Niagara Falls USA	108,829		109,651		4.89	%	727		2020
Freehold Raceway Mall(5)	398,254		398,212		3.94	%	1,300		2029
Fresno Fashion Fair	323,509		323,460		3.67	%	971		2026
Green Acres Commons(7)	128,236		128,006		5.20	%	503		2021
Green Acres Mall	282,941		284,686		3.61	%	1,447		2021
Kings Plaza Shopping Center	434,479		437,120		3.67	%	2,229		2019
Oaks, The	190,832		192,037		4.14	%	1,064		2022
Pacific View	120,583		121,362		4.08	%	668		2022
Queens Center	600,000		600,000		3.49	%	1,744		2025
Santa Monica Place(8)	297,256		297,069		4.08	%	958		2022
SanTan Village Regional Center(9)	120,776		121,585		3.14	%	589		2019
Towne Mall	20,619		20,733		4.48	%	117		2022
Tucson La Encantada	64,947		65,361		4.23	%	368		2022
Victor Valley, Mall of	114,690		114,675		4.00	%	380		2024
Vintage Faire Mall	256,741		258,207		3.55	%	1,256		2026
	$	4,162,072	$	4,073,916

(1)

The mortgage notes payable balances includes an unamortized debt premium. 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 loan on Fashion Outlets of Niagara Falls USA had a premium of $1,469 and $1,701 at March 31, 2019 and December 31, 2018, respectively.

The mortgage notes payable 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 $12,524 and $13,053 at March 31, 2019 and December 31, 2018, respectively.


(2)	The interest rate disclosed represents the effective interest rate, including the impact of debt premium 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 the Company's joint venture in Chandler Freehold (See Note 12—Financing Arrangement).


(6)	On January 10, 2019, the Company replaced the existing loan on the property with a new $300,000 loan that bears interest at an effective rate of 4.61% and matures on February 1, 2031.


(7)	The loan bears interest at LIBOR plus 2.15%. At March 31, 2019 and December 31, 2018, the total interest rate was 5.20% and 5.06%, respectively.


(8)	The loan bears interest at LIBOR plus 1.35%. The loan is covered by an interest rate cap agreement that effectively prevents LIBOR from exceeding 4.0% during the period ending December 9, 2019 (See Note 5—Derivative Instruments and Hedging Activities). At March 31, 2019 and December 31, 2018, the total interest rate was 4.08% and 4.01%, respectively.


(9)	On February 13, 2019, the Company’s joint venture in SanTan Village Regional Center entered into a commitment for a ten-year $220,000 loan to replace the existing loan on the property. The new loan will bear interest at a fixed rate of 4.30% and is expected to close during the second quarter of 2019.

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

The Company's mortgage notes payable are secured by the properties on which they are placed and with the exception of $65,000 of the loan on Green Acres Commons, are non-recourse to the Company.

The Company expects that all loan maturities during the next twelve months will be refinanced, restructured, extended and/or paid-off from the Company's line of credit or with cash on hand.

Total interest expense capitalized was $2,710 and $4,331 for the three months ended March 31, 2019 and 2018, respectively.

The estimated fair value (Level 2 measurement) of mortgage notes payable at March 31, 2019 and December 31, 2018 was $4,209,689 and $4,082,448, 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.