Company: SQFTP
Filing Date: 2025-08-14
Form Type: S-11
Source: 0001493152-25-011985
Chunk: 28

Company: Presidio Property Trust, Inc.
Filing Date: 2025-08-14
Form: S-11
Chunk 28
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ized Base Rent is                                                                              
 based upon actual rents due as of June 30, 2025, determined using GAAP including CAM reimbursements. |
| (3) | This property was sold                                                                               
 during the six months ended June 30, 2025                                                            |
| (4) | This property is held for                                                                            
 sale as of June 30, 2021.                                                                            |

Use of Leverage

We use mortgage loans secured by our individual properties in order to maximize the return for our stockholders. Typically, these loans are for terms ranging from five to ten years. Currently, seven of our 12 of our commercial mortgage loans are structured as non-recourse to us with limited exceptions that would cause a recourse event only upon occurrence of certain fraud, misconduct, environmental, or bankruptcy events. Non-recourse financing limits our exposure to the amount of equity invested in each property pledged as collateral thereby protecting the equity in our other assets. We can provide no assurance that the non-recourse financing will be available to us in the future on terms that are acceptable to us, or at all and there may be circumstances where lenders have recourse to our other assets. To a lesser extent, we use recourse financing. At December 31, 2024, $22.7 million of our total debt contained recourse to the Company, of which $5.0 million was related to the model homes properties.

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We have used both fixed and variable interest rate debt to finance our properties. Wherever possible, we prefer to obtain fixed rate mortgage financing as it provides better cost predictability. As of December 31, 2024, none of our mortgage loans included variable interest rate provisions.

In 2025, we have $8.3 million of principal payments on mortgage notes payable related to the Model Home Properties, including $7.7 million payments related to mortgage notes payable that mature in 2025. We plan to refinance a significant portion of the mortgage notes payable or sell the model home properties to repay the mortgage notes payable. We have $30.5 million of principal payments on mortgage notes payable relating to commercial properties in 2025, four of which are maturing in 2025. The loans for Union Town Center (“UTC”) and Research Parkway were paid in full, when the properties were sold in February 2025. The loan on Dakota Center matured in July 2024 and management has been working with the lender and their special servicer of the loan to sell the property and settle