Company: SQFTP
Filing Date: 2025-12-18
Form Type: 424B3
Source: 0001493152-25-028343
Chunk: 6

Company: Presidio Property Trust, Inc.
Filing Date: 2025-12-18
Form: 424B3
Chunk 6
---
 sale of properties. We continue to actively    
 manage our properties to maximize the opportunity to recycle capital.                                                                  |

| 3 |

Our Model Home Property Investment Approach

Model homes are single-family homes constructed by builders for the purpose of showcasing floor plans, elevations, optional features, and workmanship when marketing the development where the homes are located. Each model home is designed to be held for a minimum lease term (usually two to three years), after which the model home is listed for sale at the estimated fair market value. Our model home business operates in Houston, Texas, with oversight by senior management. We seek to purchase model homes, at a 5% to 10% discount, that have a likelihood of appreciation within the expected two to three-year term of the lease. Our model home leaseback agreements are triple net, requiring the homebuilder/tenant to pay all operating expenses. We seek model homes in a variety of locations, a variety of price ranges, and from a variety of builders and developers to diversify the risk from economic conditions that may adversely affect a particular development or location.

During the nine months ended September 30, 2025, we acquired 22 model homes for approximately $9.4 million. The purchase price was paid through cash payments of approximately $2.8 million and mortgage notes of approximately $6.6 million. During that period, the Company sold 16 model homes for approximately $7.4 million, net of sales costs, and recognized a gain of approximately $0.6 million. During the nine months ended September 30, 2024, the Company acquired 19 model homes for approximately $9.7 million. The purchase price was paid through cash payments of approximately $3.0 million and mortgage notes of approximately $6.7 million. During this period, the Company sold 46 model homes for approximately $22.3 million, net of sales costs, and recognized a gain of approximately $3.2 million.

During the year ended December 31, 2024, we acquired 19 model homes and leased them back to the homebuilders under triple net leases. The purchase price for these properties was $9.7 million. The purchase price consisted of cash payments of $3.0 million and mortgage notes of $6.7 million. During this period, we sold 51 model homes for approximately $24.8 million and recognized a gain of approximately $3.4 million. During the year ended December 31, 2023, we acquired 40