v3.25.2
Debt
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt Debt
Debt consisted of the following:
Principal Balance
As of June 30, 2025
(amounts in thousands)June 30, 2025December 31, 2024Stated
Rate
Effective
Rate(1)
Maturity
Date(2)
Fixed rate mortgage debt:
10 Union Square$50,000 $50,000 3.70 %3.97 %4/1/2026
1542 Third Avenue30,000 30,000 4.29 %4.53 %5/1/2027
1010 Third Avenue and 77 West 55th Street33,580 34,048 4.01 %4.21 %1/5/2028
Metro Center (3)
71,600 71,600 3.59 %3.67 %11/5/2029
250 West 57th Street180,000 180,000 2.83 %3.21 %12/1/2030
1333 Broadway160,000 160,000 4.21 %4.29 %2/5/2033
345 East 94th Street - Series A43,600 43,600 
70% of SOFR plus 0.95%
3.56 %11/1/2030
345 East 94th Street - Series B6,106 6,490 
SOFR plus 2.24%
3.56 %11/1/2030
561 10th Avenue - Series A114,500 114,500 
70% of SOFR plus 1.07%
3.85 %11/1/2033
561 10th Avenue - Series B13,092 14,036 
SOFR plus 2.45%
3.85 %11/1/2033
Total mortgage debt702,478 704,274 
Senior unsecured notes:(4)
   Series A— 100,000 — — — 
   Series B125,000 125,000 4.09 %4.12 %3/27/2027
   Series C125,000 125,000 4.18 %4.21 %3/27/2030
   Series D115,000 115,000 4.08 %4.11 %1/22/2028
   Series E160,000 160,000 4.26 %4.27 %3/22/2030
   Series F175,000 175,000 4.44 %4.45 %3/22/2033
   Series G100,000 100,000 3.61 %4.89 %3/17/2032
   Series H75,000 75,000 3.73 %5.00 %3/17/2035
   Series I155,000 155,000 7.20 %7.39 %6/17/2029
   Series J45,000 45,000 7.32 %7.46 %6/17/2031
   Series K25,000 25,000 7.41 %7.52 %6/17/2034
Unsecured term loan facility (4)
175,000 175,000 
SOFR plus 1.50%
4.61 %12/31/2026
Unsecured term loan facility (3),(4)
95,000 95,000 
 SOFR plus 1.50%
5.16 %3/8/2029
Unsecured revolving credit facility (3),(4)
— 120,000 
SOFR plus 1.30%
4.04 %3/8/2029
Total principal2,072,478 2,294,274 
Deferred financing costs, net(9,007)(10,123)
Unamortized debt discount(5,793)(6,183)
Total$2,057,678 $2,277,968 
______________
(1)The effective rate is the yield as of June 30, 2025 and includes the stated interest rate, deferred financing cost amortization and interest associated with variable to fixed interest rate swap agreements.
(2)Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.
(3)Assumes extension options are exercised for the 2029 maturities of the term loan, revolving credit facility and Metro Center mortgage.
(4)At June 30, 2025, we were in compliance with all debt covenants.
Principal Payments
Aggregate required principal payments at June 30, 2025 are as follows (amounts in thousands):
YearAmortizationMaturitiesTotal
2025$1,868 $— $1,868 
20263,957 225,000 228,957 
20274,276 155,000 159,276 
20283,555 146,091 149,646 
20293,890 321,600 325,490 
Thereafter14,634 1,192,607 1,207,241 
Total$32,180 $2,040,298 $2,072,478 
Deferred Financing Costs
Deferred financing costs, net, consisted of the following:
(amounts in thousands)June 30, 2025December 31, 2024
Deferred financing costs, included as a component of net debt$16,121 $36,309 
Deferred financings costs, included as a component of net deferred costs (See Note 4)17,124 16,638 
Total deferred financing costs$33,245 $52,947 
Less: accumulated amortization(15,955)(33,970)
Total deferred financing costs, net$17,290 $18,977 
The total amortization expense related to deferred financing costs consisted of the following:
Three Months Ended June 30,Six Months Ended June 30,
(amounts in thousands)2025202420252024
Amortization of deferred financing costs$1,080 $1,050 $2,174 $2,069 
Unsecured Revolving Credit and Term Loan Facilities
On May 28, 2025, we entered into a first amendment to our second amended and restated credit agreement, dated March 8, 2024, with Bank of America, N.A., as administrative agent and other lenders party thereto, which governs our senior unsecured revolving credit facility and term loan facility (collectively, the “BofA Credit Facilities”). The first amendment amends certain sustainability margin adjustment terms. No other changes were made to the amount of the commitments, the maturity date of the outstanding loans or the covenants. The BofA Credit Facilities are comprised of a $620.0 million senior unsecured revolving credit facility (the “Revolving Credit Facility”) and a $95.0 million term loan facility (the “BofA Term Loan Facility”). We may request that the BofA Credit Facilities be increased through one or more increases in the Revolving Credit Facility or one or more increases in the BofA Term Loan Facility or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount under the second amended and restated credit agreement not to exceed $1.5 billion.
The Revolving Credit Facility matures on March 8, 2029, inclusive of two six-month extension periods. The BofA Term Loan Facility matures on March 8, 2029, inclusive of two twelve-month extension periods. Initial interest rates on the BofA Credit Facilities, which may change based on our leverage levels, are SOFR plus a benchmark adjustment of 10.0 basis points ("adjusted SOFR") plus 130 basis points for any drawn portion of the Revolving Credit Facility and adjusted SOFR plus 150 basis points for the BofA Term Loan Facility. In addition, the BofA Credit Facilities have a sustainability-linked pricing mechanism that reduces the borrowing spread if certain benchmarks are achieved each year. On March 18, 2025, we repaid the $120.0 million borrowings previously drawn on the Revolving Credit Facility. As of June 30, 2025, we had no borrowings under the Revolving Credit Facility and $95.0 million under the BofA Term Loan Facility.
On March 13, 2024, we entered into a third amendment to our credit agreement dated March 19, 2020, with Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto, which governs a senior
unsecured term loan facility (the “Wells Term Loan Facility”). The Wells Term Loan Facility is in the original principal amount of $175.0 million and matures on December 31, 2026. The third amendment provides for, among other things, certain conforming changes to the BofA Credit Facilities agreement, including increases to the capitalization rate for certain of our properties. No other changes were made to the amount of the commitments, the maturity date of the outstanding loans or the covenants. We may request the Wells Term Loan Facility be increased through one or more increases or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount not to exceed $225.0 million. As of June 30, 2025, our borrowings amounted to $175.0 million under the Wells Term Loan Facility.
The terms of both the BofA Credit Facilities and the Wells Term Loan Facility include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. Both facilities also require compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreements governing both facilities also contain customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, invalidity of loan documents, loss of REIT qualification, and occurrence of a change of control. As of June 30, 2025, we were in compliance with these covenants.
Senior Unsecured Notes
On March 27, 2025, the Series A senior unsecured notes matured and the aggregate principal amount of $100.0 million was repaid. The notes had a stated interest rate of 3.93%.
The terms of our senior unsecured notes, include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. The terms also require compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreements also contain customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, the occurrence of certain change of control transactions and loss of REIT qualification. As of June 30, 2025, we were in compliance with these covenants.