Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 1

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 1
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 The financial statements of Justice were consolidated with those of the Company.

Prior
to its dissolution effective December 23, 2021, Justice owned and operated a 544-room hotel property located at 750 Kearny Street, San
Francisco California, known as the Hilton San Francisco Financial District (the “Hotel”) and related facilities including
a five-level underground parking garage through its subsidiaries Justice Operating Company, LLC (“Operating”) and Justice
Mezzanine Company, LLC (“Mezzanine”). Mezzanine was a wholly owned subsidiary of the Partnership; Operating is a wholly owned
subsidiary of Mezzanine. Effective December 23, 2021, Portsmouth replaced Justice as the single member of Mezzanine. Mezzanine is the
borrower under certain mezzanine indebtedness of Justice, and in December 2013, the Partnership conveyed ownership of the Hotel to Operating.
The Hotel is a full-service Hilton brand hotel pursuant to a Franchise License Agreement with HLT Franchise Holding LLC (“Hilton”)
through January 31, 2030. The franchise agreement requires the hotel to meet certain brand standards and capital improvement requirements,
noncompliance with which could have an adverse impact on operations, as discussed in Item 1A – Risk Factors.

In
connection with the refinancing of the Hotel on March 28, 2025, the Company formed Justice Pledgor, LLC, a Delaware limited liability
company (“Pledgor”), which became the sole member of Operating. Mezzanine is the sole member of Pledgor. The refinancing
transaction resulted in an increase in Portsmouth’s leverage of approximately $1 million and subjects us to additional covenants
and payment obligations, which are described in Item 7 – Management’s Discussion and Analysis of Financial Condition and
Results of Operations. The Hotel’s senior mortgage and amended mezzanine loans are obligations of Portsmouth’s subsidiaries
and are secured at the Hotel-subsidiary level; they are not primary obligations of InterGroup. As part of the March 28, 2025 closing,
prior guaranties tied to the 2013/2017 facilities were terminated and replaced by limited “carve-out/springing recourse”
guaranties executed by Portsmouth and InterGroup as described in Note 10.

4

In
addition to the operations of the Hotel, the Company also generates income from the ownership, management and, when appropriate, sale
of real estate. Properties include sixteen apartment complexes, one commercial