v3.26.1
DERIVATIVE FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS
9. DERIVATIVE FINANCIAL INSTRUMENTS
The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of June 30, 2026 and December 31, 2025. The notional amounts provide an indication of the extent of the Company’s involvement in these instruments at that time, but do not represent exposure to credit, interest rate or market risks (dollar amounts presented in thousands).
Hedge ProductHedge TypeDesignationNotional AmountStrikeTrade DateMaturity DateFair value
6/30/202612/31/20256/30/202612/31/2025
Assets
SwapInterest RateCash Flow(a)$250,000 $— 3.713 %November 23, 2022June 30, 2027$520 $— 
SwapInterest RateCash Flow(a)27,062 — 3.629 %January 12, 2024December 30, 202628 — 
SwapInterest RateCash Flow(a)51,548 — 3.725 %January 12, 2024January 30, 202742 — 
Cap
Interest Rate
Cash Flow
$178,014 $178,014 3.000 %July 22, 2025July 22, 2026$66 $546 
Liabilities
SwapInterest RateCash Flow(a)$— $250,000 3.713 %November 23, 2022June 30, 2027$— $(1,530)
SwapInterest RateCash Flow(a)— 27,062 3.629 %January 12, 2024December 30, 2026— (61)
SwapInterest RateCash Flow(a)— 51,548 3.725 %January 12, 2024January 30, 2027— (189)
SwapInterest RateCash Flow(a) (b)$90,000 $— 3.959 %June 24, 2026June 24, 2033$(386)— 
$596,624 $506,624 
(a)Hedging unsecured variable rate debt.
(b)On June 24, 2026, the Company closed on a $90 million secured term loan at Avira, the residential component of 3025 JFK, located in Philadelphia, Pennsylvania. The loan bears interest at 1.85% over SOFR and has an initial maturity date of June 2033. Effective June 24, 2026, the loan was swapped to a fixed rate at 5.81% through the maturity date.
The Company measures its derivative instruments at fair value and records them in “Other assets” and “Other liabilities” on the Company’s consolidated balance sheets.
Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that the inputs utilized to determine the fair value of derivative instruments are classified in Level 2 of the fair value hierarchy.