Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 1469

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 1469
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 extension or modification of the non-recourse loan; however, the lender's final decision was to have the Company sell the property on the open market with a real estate broker.  The current loan balance is approximately $9.1 million, and our book value is approximately $8.3 million, after a $0.7 million impairment taken in Q3 2024.  On October 17, 2024, we also provided an unsolicited offer from Edgewood Properties for $8.0 million, but the lender has asked the Company to conduct a market sale for the property to recover the maximum proceeds to repay the non-recourse loan.  The lender rejected this offer and we are proceeding with the open market sale.  In January 2025, we finalized the broker agreement with CBRE to sell the property.  CBRE has the property listed without a sales price, but has a cashflow model with the target sales price at $9.0 million.  The lender will have final say on approval of a purchase offer and closing price, so there can be no guarantee CBRE will be able to achieve a $9.0 million sales price.  Either way, this is a non-recourse loan and will not affect our future cash flow if it sells for less than the loan amount. 

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      Union Town Center (January 2025) and Research Pkwy (January 2025):  We have listed the properties for sale as of December 31, 2024.  The Company was able to obtain a short term extension with the lenders in order to accommodate the close date for the sale.  The sale took place on February 6, 2025, with a price of $16,950,000 for both UTC and Research Parkway.  Internally, we allocated the purchase price at 80.2% to UTC and 19.8% to Research Parkway, based on total square feet, book value and adjusted book value to the liabilities and assets to be eliminated at the closing.  We received $6.37 million in cash proceeds from the sale and additional funds post-closing from the lender's reserve accounts. 

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      One Park Centre – We have begun exploring refinancing options with our current broker at NorthMarq to pay off the current loan at maturity. The property’s current occupancy is 85.7% and has positive cash flow