Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 90

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 90
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 Financial District – mezzanine 
    Justice Mezzanine Company, LLC (Portsmouth subsidiary) 
    Equity interests in Operating 
    Limited guaranty by Portsmouth; InterGroup as additional guarantor (see Section D)
  
    InterGroup non-hotel property mortgages (e.g., Florence, KY; St. Louis, MO; Las Colinas, TX) 
    InterGroup or its property-owning subsidiaries (non-Portsmouth) 
    Related multifamily/commercial properties 
    Obligations of InterGroup (parent-level real estate portfolio)

A.
Mortgage and Mezzanine Loan History

In
December 2013, Justice Investors Limited Partnership (“Justice”), then a consolidated subsidiary of Portsmouth, obtained
a $97,000,000 mortgage loan and a $20,000,000 mezzanine loan to fund the redemption of limited partnership interests and repay a prior
$42,940,000 mortgage loan. The mortgage loan was secured by Portsmouth’s principal asset, the Hilton San Francisco Financial District
(the “Hotel”), and bore interest at 5.275% per annum. The loan required interest-only payments through January 2017 and began
amortizing thereafter on a 30-year schedule, maturing on January 1, 2024. The mortgage loan was guaranteed in part by Portsmouth.

The
mezzanine loan, originally bearing interest at 9.75% per annum and maturing concurrently with the senior loan, was secured by the membership
interests of Justice Operating Company, LLC (“Operating”), held by Justice Mezzanine Company, LLC (“Mezzanine”),
and was subordinated to the mortgage debt. The mezzanine loan was refinanced in July 2019 through a new agreement with CRED REIT Holdco
LLC (“Mezzanine Lender”) in the amount of $20,000,000, at a reduced fixed interest rate of 7.25%, also maturing on January
1, 2024.

As
of June 30, 2024, the outstanding senior mortgage loan balance was $76,962,000. As of December 31, 2024, the outstanding balance was
$75,789,000.

B.
Forbearance Agreements and Defaults

Due
to the maturity of both loans on January 1, 2024, and the absence of full repayment by that date, Portsmouth (through Operating and Mezzanine)
negotiated forbearance agreements with both