v3.26.1
Mortgage Notes, Repurchase Facility and Unsecured Revolving Credit Facility
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Mortgage Notes, Repurchase Facility and Unsecured Revolving Credit Facility Mortgage Notes, Repurchase Facility and Unsecured Revolving Credit Facility
Mortgage notes
The following is a summary of the mortgage notes secured by the Company’s properties ($ in thousands):
Principal Balance Outstanding
IndebtednessInterest RateMaturity DateJune 30, 2026December 31, 2025
Fixed rate debt secured by our properties
Caroline West Gray5.44%December 1, 2029$45,911 $45,911 
Caroline Post Oak5.44%December 1, 202940,528 40,528 
Coda on Centre4.28%May 1, 202927,582 27,860 
The Elmstead(1)
4.30%April 1, 203121,188 21,245 
Bass Lofts3.95%September 5, 202714,710 14,902 
One Brooklyn4.35%July 1, 20286,600 6,600 
Charleston5.08%September 1, 203059,728 59,728 
Baker Chocolate3.91%January 1, 202823,500 23,500 
Total fixed rate239,747 240,274 
Variable rate debt secured by our properties
6200 Bristol(2)
SOFR + 2.05%
April 1, 202910,000 10,000 
Norfolk Industrial Portfolio(3)
SOFR + 1.75%
June 19, 203043,700 43,700 
Preserve at Pine Valley(4)
SOFR + 1.50%
December 10, 203021,200 21,200 
Vineyard Commons(5)
SOFR + 1.40%
January 1, 203045,175 45,175 
Stablewood(6)
SOFR + 3.75%
August 8, 20289,568 5,292 
Total variable rate129,643 125,367 
Total loans secured by real estate369,390 365,641 
Deferred financing costs, net(3,761)(4,327)
Mortgage discount, net(1,563)(1,869)
Total debt secured by our properties$364,066 $359,445 
(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 an interest rate swap that was not designated as a hedge, which fixed the rate at 6.26%.
(3)The Company entered into an interest rate swap that was not designated as a hedge, which fixed the rate at 5.41%.
(4)The Company entered into an interest rate swap that was not designated as a hedge, which fixed the rate at 4.90%.
(5)The Company entered into an interest rate swap that was not designated as a hedge, which fixed the rate at 4.88%.
(6)Represents a line of credit secured by real estate with a maximum facility size of $50 million.
The following table details the future principal payments due under the Company’s mortgage notes as of June 30, 2026 ($ in thousands):
YearMortgage Notes
2026 (remaining)$648 
202715,458 
202841,856 
2029125,273 
2030166,662 
Thereafter19,493 
Total future principal payments$369,390 
Repurchase Facility
On August 22, 2024, the Company entered into a Master Repurchase Agreement (the “Repurchase Facility”). The Repurchase Facility initially provided 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. On November 14, 2025, the Repurchase Facility was amended to increase maximum aggregate purchase price from $150 million to $250 million.
Advances under the Repurchase Facility accrue interest at a per annum rate equal to the Term SOFR Base Rate (as defined in the Repurchase Facility) for a one-month period plus a margin as agreed upon for each transaction. The Repurchase Facility contains affirmative and negative covenants and provisions regarding events of default. The Operating Partnership has agreed to provide a limited guarantee of the obligations of the Company under the Repurchase Facility.
Borrowings from the Repurchase Facility were used to originate the commercial mortgage loans (see Note 5).
The Company’s borrowings from the Repurchase Facility as of June 30, 2026 and December 31, 2025 are detailed in the following table ($ in thousands):
Borrowings Outstanding
Maximum Facility SizeWeighted-Average Interest RateWeighted-Average Maturity DateJune 30, 2026December 31, 2025
Repurchase Facility$250,000 
SOFR + 1.52%
August 22, 2027$228,450 $168,450 
Less: Unamortized deferred financing costs(567)(587)
$250,000 $227,883 $167,863 
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, 2026, the Company was in compliance with its loan covenants.
Unsecured revolving credit facility
On July 15, 2025, the Operating Partnership, as a borrower and certain subsidiaries of the Operating Partnership party thereto from time to time, as designated borrowers, entered into a credit agreement (the “Credit Agreement”) with Truist Bank (“Truist”), as the administrative agent and a letter of credit issuer, and each lender party thereto from time to time (the “Lenders”). The Credit Agreement provides for unsecured revolving credit commitments in an aggregate amount of up to $325.0 million for revolving loans and letter of credit issuances, with an accordion feature pursuant to which the borrowers may request to increase the revolving commitments and create new term loan tranches in an additional aggregate amount of up to $675.0 million, subject to the satisfaction of certain conditions (the “Credit Facility”). The proceeds of the Credit Facility will be used for general business purposes, including, debt refinancing, property acquisitions, new construction, renovations, capital expenditures, expansions, tenant improvements, leasing commissions, refinancing of existing lines, financing acquisition of permitted investments, dividends, redemptions, closing costs and equity investments primarily associated with commercial real estate property acquisitions or refinancings. The Credit Facility is guaranteed by the Company and certain subsidiaries of the Operating Partnership.
At the Operating Partnership’s election, revolving loans advanced under the Credit Agreement shall bear interest at a rate per annum equal to (a) a forward-looking term rate based on the secured overnight financing rate for the applicable interest period (“Term SOFR”), as selected by the Operating Partnership, plus an applicable margin ranging between 1.30% and 1.80% per annum (“Term SOFR Margin”), or (b) the highest of (i) the federal funds rate plus 0.50%, (ii) Truist’s prime rate, (iii) Term SOFR for a one month tenor in effect on such day plus 1.00%, and (iv) 1.00% (“Base Rate”), plus an applicable margin ranging between 0.30% and 0.80% per annum (“Base Rate Margin”). Letters of credit issued under the Credit Facility will accrue a letter of credit fee equal to the applicable Term SOFR Margin times the daily amount available to be drawn under such letter of credit.
Revolving loans and letters of credit under the Credit Facility will mature on July 15, 2028, subject to any earlier termination in accordance with the terms of the Credit Agreement and to certain extension options detailed therein.
The Company’s borrowings from the Credit Facility as of June 30, 2026 and December 31, 2025 are detailed in the following table ($ in thousands):
Borrowings Outstanding
Maximum Facility SizeWeighted-Average Interest RateMaturity DateJune 30, 2026December 31, 2025
Credit Facility$325,000 
SOFR + 1.40%
July 15, 2028$55,000 $73,000 
Pursuant to the Credit Agreement, the Company has made certain representations and warranties and must comply with various covenants and reporting requirements. The Credit Agreement contains events of default for financings of this type. Upon the occurrence of certain events of default, Truist, as administrative agent, may, and at the instruction of the Lenders will, among other remedies, suspend the commitments of the Lenders and any obligation of the letter of credit issuers to make letter of credit extensions, terminate the commitments of the Lenders and any obligation of the letter of credit issuer to make letter of credit extensions, demand that existing letters of credit be cash collateralized, and declare the outstanding loans and other obligations under the Credit Facility immediately due and payable. As of June 30, 2026, the Company was in compliance with its loan covenants.