Company: GIPRW
Filing Date: 2025-06-20
Form Type: 8-K
Source: 0000950170-25-088517
Chunk: 1

Company: GENERATION INCOME PROPERTIES, INC.
Filing Date: 2025-06-20
Form: 8-K
Item: Item 2.03
Chunk 1
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Item 2.03 Creation of a Direct Financial Obligations or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

On June 13, 2025, GIPDC 3707 14th St, LLC (the “ Borrower”), an indirect subsidiary of Generation Income Properties, Inc. (the “ Company”), entered into a Loan Agreement (the “ Loan Agreement”) with Valley National Bank (the “ Lender”), pursuant to which the Lender made a mortgage loan in the original principal amount of $1.1 million (the “ Loan”). The Loan is secured by a first-priority Deed of Trust and Assignment of Rents and Leases on the Borrower’s fee interest in a previously unencumbered single-tenant property located at 3707 - 3711 14th Street NW, Washington, D. C. (the “ Property”).

The Loan is evidenced by a Promissory Note, dated June 13, 2025 (the “ Note”), bearing interest at a fixed rate of 6.50% per annum. The net proceeds of the Loan were used to extract equity from the Property for general corporate purposes. At closing, $750,000 of the Loan proceeds was disbursed, with an additional $350,000 (the “ Renewal Funds”) to be disbursed upon satisfaction of certain conditions, including the delivery to the Lender, on or before March 31, 2026, of an executed lease renewal with the Property’s current tenant, 7-Eleven, Inc., extending the lease for an additional five years beyond its current expiration date of March 31, 2026. Monthly interest-only payments are due beginning July 13, 2025, through June 13, 2026. If the required lease renewal is delivered and all other conditions are satisfied to the Lender’s sole satisfaction, the Renewal Funds will be disbursed, and the maturity date of the Loan will be automatically extended to June 13, 2030. In such case, beginning July 13, 2026, the borrower will make monthly payments of principal and interest based on a 25-year amortization schedule, with a final balloon payment due on the extended maturity date of June 13, 2030. If the lease renewal is not delivered by March 31, 2026, the Loan will mature on that date, and all outstanding principal, accrued interest, and other amounts will become immediately due and payable.