Overall, we are looking for our leasing activities to proceed smoothly under the modestly changed guidelines of the Article 11 agreement, including incorporating the 249 new subsidized residents as vacancies arise. In the quarter, new leases averaged $31 per square foot, 10% higher than previous rents, and renewals averaged $25 per square foot, 5% higher than previous rents. As a result, overall average rents for the property have begun to increase again, rising to $26.62 per square foot at the end of the quarter versus $25.12 at the end of the last year. Operationally, our other residential properties at 10 West 65th Street, Aspen, and 250 Livingston Street continue to perform well. Average lease occupancy for these properties has been above 96%, and average rental rates have increased 11% from a year ago.
Rent collections across our portfolio remain strong and steady despite the lingering challenges of the pandemic. The overall collection rate in the third quarter was over 98%, and we have continued to benefit but at a lower rate from the remittances under the New York Emergency Rental Assistance Program, or ERAP, and the Landlord Rental Assistance Program, or LRAP, which totaled $280,000 this quarter versus $400,000 last quarter. Looking ahead, we remain focused on optimizing occupancy, pricing, and expenses across the business, expeditiously completing our development projects and fully implementing the Article 11 transaction to best position ourselves for growth. I will now turn over the call to Larry, who will discuss our financial results.
Larry Kreider : Thank you, J.J. For the third quarter, revenues increased to a record $35.1 million from $32.8 million last year, third quarter, by $2.3 million, or excluding the impact of Pacific House that came online in the second quarter, an increase of $1.2 million. NOI this quarter was $20.0 million, an increase of $2.6 million from last year, or $1.9 million, excluding the impact of Pacific House. AFFO this year was $6.3 million, an increase of $1.2 million from last year, or $1.4 million, excluding the impact of Pacific House, which reflected full interest expense in the quarter, but only partial initial lease up. The $1.2 million, or 4% revenue increase, excluding the impact of Pacific House, was primarily due to higher residential rental rates from all properties, from continued strong leasing as previously discussed.
Bad debt expense was substantially the same as last year, reflecting high and stabilized collections. On the expense side, key year-over-year changes were as follows: Property operating expenses were approximately $400,000 higher than last year, excluding the impact of Pacific House, primarily due to higher repairs and maintenance and supplies at the Flatbush Gardens property to make the necessary repairs, and higher payroll at Flatbush Gardens to comply with the new living wage requirements under the Article 11 agreement. Real estate taxes and insurance decreased by approximately $1 million in the third quarter, year-on-year, excluding the impact of Pacific House, $1.8 million due to elimination of real estate taxes at Flatbush Gardens, partially offset by a $200,000 increase due to routine increases in real estate taxes mid-year last year at the other properties, and $600,000 due to insurance cost increases.
General and administrative costs increased by $100,000 in the third quarter, year-on-year, primarily due to regular payroll increases. Interest expense increased by $300,000 in the third quarter, year-on-year, excluding the impact of Pacific House, due to conversion of debt at the 10 West 63rd Street property to variable rate according to its terms, and the elimination of capitalized interest for Pacific House, partially offset by additional capitalization of interest associated with the 953 Dean Street development project, and higher interest income on cash deposits. With regard to our balance sheet, we have $22.5 million of unrestricted cash and $14.9 million of restricted cash. In September, we borrowed the last $20 million tranche under the Pacific House $80 million mortgage loan that we entered in February of this year, and we successfully completed the $123 million construction loan for the Dean Street ground-up development that should see us through completion projected mid-2025.
