Company: INTG
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006758
Chunk: 73

Company: INTERGROUP CORP
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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 of the management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for
an additional year not to exceed five years in aggregate subject to certain conditions. The HMA also provides for Ambridge to advance
a key money incentive fee to the Hotel for capital improvements in the amount of $2,000,000 under certain terms and conditions described
in a separate key money agreement. The key money contribution shall be amortized in equal monthly amounts over an eight (8) year period
commencing on the second anniversary of the takeover date. The unamortized portion of $521,000 and $646,000 of the key money is included
in the other notes payable in the consolidated balance sheets as of December 31, 2024 and June 30, 2024, respectively.

Future
minimum principal payments and amortizations for all other financing transactions are as follows:

 SCHEDULE
OF FUTURE MINIMUM PRINCIPAL AMORTIZATIONS

For
the year ending June 30,

    2025 (6 months) 
    $283,000 
  
    2026 
     567,000 
  
    2027 
     463,000 
  
    2028 
     317,000 
  
    2029 
     317,000 
  
    Thereafter 
     316,000 
  
    Long term debt 
    $2,263,000 

To
fund the redemption of limited partnership interests and to repay the prior mortgage of $42,940,000, Justice obtained a $97,000,000 mortgage
loan and a $20,000,000 mezzanine loan in December 2013. The mortgage loan is secured by the Company’s principal asset, the Hotel.
The mortgage loan bears an interest rate of 5.275% per annum with interest only payments due through January 2017. Beginning in February
2017, the loan began to amortize over a thirty-year period and matured on January 1, 2024. Outstanding principal balance on the loan
was $76,386,000 and $76,962,000 as of September 30, 2024 and June 30, 2024, respectively. As additional security for the mortgage loan,
there is a limited guaranty executed by Portsmouth in favor of the mortgage lender. On April 29, 2024, U.S. Bank National Association
and other