Annual report pursuant to Section 13 and 15(d)

Mortgage Notes Payable

v2.4.0.8
Mortgage Notes Payable
12 Months Ended
Dec. 31, 2013
Notes Payable, Noncurrent [Abstract]  
Mortgage Notes Payable
As of December 31, 2013 and 2012, we had outstanding mortgage notes payable, each collateralized by one or more buildings and related land from our portfolio, as follows (in thousands):
 
 
 
 
 
 
December 31,
 
 
Properties
 
Assumption/Issuance Date (1)
 
Effective Interest Rate (2)
 
2013
 
2012
 
Payoff Date/Maturity Date
650 North Glebe Road (3), (4)
 
2/21/2013
 
2.31
%
 
$
7,297

 
$

 
2/21/2016
John Marshall II
 
9/15/2011
 
5.79
%
 
$
52,563

 
$
53,274

 
5/5/2016
Olney Village Center
 
8/30/2011
 
4.94
%
 
20,743

 
22,343

 
10/1/2023
Kenmore Apartments
 
2/2/2009
 
5.37
%
 
34,937

 
35,535

 
3/1/2019
2445 M Street (4)
 
12/2/2008
 
7.25
%
 
98,102

 
96,848

 
1/6/2017
3801 Connecticut Avenue, Walker House and Bethesda Hill (5)
 
5/29/2008
 
5.71
%
 
81,029

 
81,029

 
6/1/2016
Ashburn Farm Office Park (6)
 
6/1/2007
 
5.56
%
 

 
2,313

 
11/21/2013
Ashburn Farm III Office Park (7)
 
6/1/2007
 
5.69
%
 

 
2,024

 
11/21/2013
Woodholme Medical Office Center (8)
 
6/1/2007
 
5.29
%
 

 
19,608

 
11/22/2013
West Gude Drive (9)
 
8/25/2006
 
5.86
%
 

 
29,996

 
1/11/2013
 
 
 
 
 
 
$
294,671

 
$
342,970

 
 
(1) Each of these mortgages was assumed with the acquisition of the collateralized properties, except for the mortgage notes secured by 3801 Connecticut Avenue, Walker House, Bethesda Hill, Kenmore Apartments, and the construction loan secured by the development project at 650 North Glebe Road, which were originally executed by WRIT. We record mortgages assumed in an acquisition at fair value, and balances presented include any recorded premiums or discounts.
(2) Yield on the assumption/issuance date, including the effects of any premiums, discounts or fair value adjustments on the notes.
(3) Interest rate on 650 North Glebe Road is variable, based on LIBOR plus 2.15%. The maturity date can be extended for up to two years, subject to fees and compliance with certain provisions in the loan agreement, until February 20, 2018.
(4) Interest only is payable monthly until the maturity date upon which all unpaid principal and interest are payable in full.
(5) Interest only is payable monthly until the maturity date, which can be extended for one year upon which the interest rate is reset on June 1, 2016. At maturity on June 1, 2017, all unpaid principal and interest are payable in full.
(6) In November 2013, we extinguished the remaining $2.2 million of principal on the mortgage note secured by Ashburn Farm Office Park with extinguishment costs of $0.5 million.
(7) In November 2013, we extinguished the remaining $1.9 million of principal on the mortgage note secured by Ashburn Farm III Office Park, with extinguishment costs of $0.4 million.
(8) In November 2013, we extinguished the remaining $19.3 million of principal on the mortgage note secured by Woodholme Medical Office Center, with extinguishment costs of $1.8 million.

(9) In January 2013, we extinguished without penalty the remaining $30.0 million of principal on the mortgage note secured by West Gude Drive.

The mortgage notes secured by Ashburn Farm Office Park I and II and Woodholme Medical Office Building are included in "Other liabilities related to properties sold or held for sale" on our consolidated balance sheets as of December 31, 2012, as the properties were sold in 2013.
Except as noted above, principal and interest are payable monthly until the maturity date, upon which all unpaid principal and interest are payable in full.

Total carrying amount of the above mortgaged properties was $433.7 million and $510.0 million at December 31, 2013 and 2012, respectively.

Scheduled principal payments subsequent to December 31, 2013 are as follows (in thousands):
2014
$
2,840

2015
3,017

2016
141,688

2017
104,369

2018
2,661

Thereafter
42,625

 
297,200

Net discounts/premiums
(2,529
)
Total
$
294,671