Mortgage Notes and Repurchase Facility |
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| Mortgage Notes and Repurchase Facility | 8. Mortgage Notes and Repurchase Facility Mortgage notes The following is a summary of the mortgage notes secured by the Company’s properties ($ in thousands):
(1) This loan is comprised of a senior and a mezzanine loan. The interest rate and maturity date presented are the weighted average. (2) The Company entered into a non-hedge interest rate swap on April 2, 2024, which fixed the rate at 6.26%. (3) The Company entered into a non-hedge interest rate swap on June 20, 2025, which fixed the rate at 5.41%. On June 20, 2025, the Company entered into a $43.7 million mortgage secured by the Norfolk Industrial Portfolio properties, which bears an interest rate of plus 1.75% and matures on June 19, 2030. The Company entered into a non-hedge interest rate swap on June 20, 2025, which fixed the rate at 5.41%. On May 22, 2025, in connection with the Elmstead Acquisition, the Company assumed $21.2 million of mortgage loans, which bear a weighted average fixed interest of 4.30% and is amortized on a 30-year schedule with a maturity date of April 1, 2031. The following table details the future principal payments due under the Company’s mortgage notes as of June 30, 2025 ($ in thousands):
Repurchase Facility On August 22, 2024, the Company entered into a Master Repurchase Agreement (the “Repurchase Facility”) with U.S. Bank National Association (the “Buyer”). The Repurchase Facility provides for a maximum aggregate purchase price of $150 million and has a three-year term plus two, one-year extension options. Subject to the terms and conditions thereof, the Repurchase Facility provides for the purchase, sale and repurchase of senior mortgage loans and participation interests in performing senior mortgage loans satisfying certain conditions set forth in the Repurchase Facility. Advances under the Repurchase Facility accrue interest at a per annum rate equal to the Term SOFR Base Rate (as defined in the Repurchase Facility) for a one-month period plus a margin as agreed upon by the Buyer and the Company for each transaction. The Repurchase Facility contains affirmative and negative covenants and provisions regarding events of default that are normal and customary for similar repurchase facilities. The Operating Partnership has agreed to provide a limited guarantee of the obligations of the Sellers under the Repurchase Facility. Borrowings from the Repurchase Facility were used to originate the commercial mortgage loans. On June 24, 2025, the Company financed the Cortland CML using proceeds from the Repurchase Facility (see Note 5). The Company’s borrowings from the Repurchase Facility as of June 30, 2025 and December 31, 2024 are detailed in the following table ($ in thousands):
(1) was 4.32% and 4.33% on June 30, 2025 and December 31, 2024, respectively. The Company is subject to various financial and operational covenants under certain of its mortgage notes and the Repurchase Facility. These covenants require the Company to maintain certain financial ratios, which may include leverage, debt yield, and debt service coverage, among others. As of June 30, 2025, the Company was in compliance with all of its loan covenants that could result in a default under such agreements. |
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