In July 2012, the Company, along with its joint venture partner, sold One Court Square for a gross sale price of $481.1 million. The transaction included the assumption by the purchaser of $315.0 million of existing debt. The Company, a 30 percent owner in the joint venture, received approximately $44.3 million of net proceeds from the sale.
Debt and Preferred Equity Investment Activity
The Company’s debt and preferred equity investment portfolio totaled $1.1 billion at September 30, 2012. During the third quarter, the Company purchased and originated new debt and preferred equity investments totaling $203.3 million, all of which are collateralized by New York City commercial office properties, and recorded $125.0 million of principal reductions from investments that were sold, repaid or otherwise resolved. The debt and preferred equity investment portfolio had a weighted average maturity of 2.6 years as of September 30, 2012 and had a weighted average yield during the quarter ended September 30, 2012 of 9.6 percent.
Financing and Capital Activity
In July 2012, the Company redeemed the entire $100.0 million, 7.875 percent Series D Cumulative Redeemable Preferred Stock at a redemption price of $25.00 per share of preferred stock plus $0.4922 in accumulated and unpaid dividends through July 14, 2012.
In August 2012, the Company issued 6.50 percent Series I Cumulative Redeemable Preferred Stock generating net proceeds to the Company of $222.2 million.
In September 2012, the Company redeemed $100.0 million of its outstanding shares of 7.625 percent Series C Cumulative Redeemable Preferred Stock at a redemption price of $25.00 per share of preferred stock plus $0.3707 in accumulated and unpaid dividends through September 24, 2012. Following the redemption, the Company has 7.7 million shares of Series C Preferred Stock outstanding.
In September 2012, the Company closed on a $175.0 million financing with a 1-year term and a 1-year extension option. This facility,
which is secured by select assets in the Company’s debt portfolio, bears interest at 300 basis points over LIBOR and was unfunded as of September 30, 2012.
In August 2012, the Company, along with its joint venture partner, recapitalized the Meadows, a New Jersey office complex. The recapitalization resulted in the Company having a 50 percent ownership in the complex and recognizing $10.8 million of additional income. As part of the recapitalization the property was encumbered by a new $60.0 million mortgage with a 3-year term and a 1-year extension option, which bears interest at 575 basis point over LIBOR, subject to a 2 percent floor.