v3.25.1
Mortgage Notes Payable, Net (Tables)
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Mortgage Notes Payable, Net
The Company’s mortgage notes payable, net as of March 31, 2025 and December 31, 2024 are as follows:
Outstanding Loan Amount
PortfolioEncumbered PropertiesMarch 31,
2025		December 31,
2024		Effective Interest RateInterest RateMaturity
(In thousands)(In thousands)
123 William Street1$140,000 $140,000 4.74 %FixedMar. 2027
1140 Avenue of the Americas (1)(3)
199,000 99,000 4.18 %FixedJul. 2026
400 E. 67th Street - Laurel Condominium / 200 Riverside Boulevard - ICON Garage (1) (4)
250,000 50,000 4.59 %FixedMay 2028
8713 Fifth Avenue (1)
110,000 10,000 5.05 %FixedNov. 2028
196 Orchard Street151,000 51,000 3.85 %FixedAug. 2029
Mortgage notes payable, gross 6350,000 350,000 4.43 %
Less: deferred financing costs, net (2)
(2,363)(2,616)
Mortgage notes payable, net $347,637 $347,384 
_______
(1)These mortgage notes payable are currently either in breach of a debt covenant that may result in further restrictions as specified by the terms of the covenants or a cash sweep event. These covenant breaches or cash sweeps do not result in an event of default. For more information please see “Debt Covenant Non-Compliance, Cash Sweep Events, Notice of Defaults and Notice of Acceleration” section below.
(2)Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.
(3)The Company was informed by the lender on February 19, 2025 that the Company was in default under the loan agreement governing the loan secured by the non-recourse mortgage on the property for failure to make certain scheduled interest payments, and on April 7, 2025 the Company was informed by the lender that the principal balance due under such loan agreement had been accelerated and all amounts under such loan agreement were due and payable. The Company is evaluating its options with respect to the property and there can be no assurance as to the resolution of these matters with the lender. For more information, please see “Debt Covenant Non-Compliance, Cash Sweep Events, Notice of Defaults and Notice of Acceleration” section below.
(4) The Company was informed by the lender pursuant to letters dated in November 2024, December 2024 and January 2025 that the Company was in default under the loan agreement governing the loan secured by the non-recourse mortgage on the property for events that occurred in the third and fourth quarters of 2023, specifically the Company’s failure to establish a cash management account for excess cash sweeps over monthly debt service requirements. The Company has responded to such notices of default, rejecting the assertions made by the lender, and has not received a response or additional notices from the lender. The lender has not accelerated any portion of the loan. For more information, please see “Debt Covenant Non-Compliance, Cash Sweep Events, Notice of Defaults and Notice of Acceleration” section below
Schedule of Aggregate Principal Payments
The following table summarizes the scheduled aggregate principal payments subsequent to March 31, 2025:
(In thousands)Future Minimum Principal Payments
2025 (remainder) (1)
$— 
202699,000 
2027140,000 
202860,000 
202951,000 
2030— 
Thereafter— 
Total$350,000 
_______
(1) On April 7, 2025, the Company was informed by the lender under the loan secured by the 1140 Avenue of the Americas property that the principal balance due under the loan agreement had been accelerated and all amounts under such loan agreement were due and payable.