# EDGAR Filing Document

**Accession Number:** 0001656108
**File Stem:** 0001104659-26-069641
**Filing Date:** 2026-6
**Character Count:** 212351
**Document Hash:** 68b57952a9d8c365c8a3ddfca7b60c46
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-069641.hdr.sgml**: 20260603

**ACCESSION NUMBER**: 0001104659-26-069641

**CONFORMED SUBMISSION TYPE**: 1-SA

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20260603

**DATE AS OF CHANGE**: 20260602

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GK Investment Holdings, LLC
- **CENTRAL INDEX KEY:** 0001656108
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 475223490
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-SA
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00036
- **FILM NUMBER:** 261058711

**BUSINESS ADDRESS:**
- **STREET 1:** 257 EAST MAIN STREET
- **STREET 2:** SUITE 200
- **CITY:** BARRINGTON
- **STATE:** IL
- **ZIP:** 60010
- **BUSINESS PHONE:** 847-277-9930

**MAIL ADDRESS:**
- **STREET 1:** 257 EAST MAIN STREET
- **STREET 2:** SUITE 200
- **CITY:** BARRINGTON
- **STATE:** IL
- **ZIP:** 60010

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-SA**

⌧ **SEMIANNUAL REPORT PURSUANT TO REGULATION A**

**or**

◻ **SPECIAL FINANCIAL REPORT PURSUANT TO REGULATION A**

For the fiscal semiannual period ended: <u>June 30, 2025</u>

<u>GK Investment Holdings, LLC</u> <br> (Exact name of issuer as specified in its charter)

<u>Delaware</u> <u>47-5223490</u> <br> State or other jurisdiction of incorporation or<br> organization (I.R.S. Employer Identification No.)

---

| |
|:---|
| 257 East Main Street, Suite 200<br> Barrington, Illinois 60010 |
| (Full mailing address of principal executive offices) |
| (847) 277-9930 |
| (Issuer's telephone number, including area code) |

---

**Item 1. Management's Discussion and Analysis of Financial Condition and Results of Operations**

***Forward Looking Statements***

This Semi-Annual Report on Form 1-SA of GK Investment Holdings, LLC, a Delaware limited liability company, contains certain forward-looking statements that are subject to various risks and uncertainties. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "outlook," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain financial and operating projections or state other forward-looking information. Our ability to predict results or the actual effect of future events, actions, plans or strategies is inherently uncertain. Although we believe that the expectations reflected in our forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth or anticipated in our forward- looking statements.

When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements in this report. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which reflect our views as of the date of this report. The matters summarized below and elsewhere in this report could cause our actual results and performance to differ materially from those set forth or anticipated in forward-looking statements. Accordingly, we cannot guarantee future results or performance. Furthermore, except as required by law, we are under no duty to, and we do not intend to, update any of our forward-looking statements after the date of this report, whether as a result of new information, future events or otherwise.

All figures provided herein are approximate.

***General***

We are focused on acquiring and lending on existing income producing commercial rental properties for the purpose of financing, developing, holding and operating the acquired such properties, and if the need arises, to redevelop the rental properties for an alternative use other than the intended use at the time of acquisition. We expect that most of the acquired assets will be held through wholly owned or majority owned subsidiaries and the assets will be acquired by assuming either existing financing secured by the asset or by borrowing new funds.

We filed an offering statement on Form 1-A, or the Offering Statement, with the United States Securities and Exchange Commission (the "SEC"), on December 23, 2015, which offering statement was qualified by the SEC on September 30, 2016. On September 29, 2017 we filed the First Post-Qualification Amendment to the Offering Statement extending the offering termination date to September 30, 2018 and updated certain other information. The Offering Statement was subsequently requalified by the SEC on October 30, 2017. On September 28, 2018 we filed the Second Post-Qualification Amendment to the Offering Statement extending the offering termination date to September 30, 2019 and updated certain other information. The Offering Statement was subsequently requalified by the SEC on October 19, 2018. Pursuant to the Offering Statement and its subsequent amendments, we offered up to a maximum of $50,000,000 of 7% unsecured bonds, or the Bonds. The purchase price per Bond is $1,000, with a minimum purchase amount of $5,000. The Bonds were offered at a 3-5% volume-weighted discount to the public price for purchases of 20 Bonds or greater. On April 30, 2019, we terminated the offering and as of such date of termination, we had sold $33,421,000 of Bonds.

On September 15, 2022, but effective September 7, 2022, GK Investment Holdings, LLC, a Delaware limited liability company (the "Company") entered into a Second Supplemental Indenture, dated September 7, 2022 (the "Second Supplemental Indenture"), by and between the Company and UMB Bank, N.A., as trustee (the "Trustee"). The Second Supplemental Indenture amended certain provisions of the Indenture, dated September 30, 2016 (the "Original Indenture"), as supplemented by the First Supplemental Indenture dated October 17, 2016 (the "First Supplemental Indenture" and together with the Original Indenture and Second Supplemental Indenture, the "Indenture"), by and between the Company and the Trustee. The Second Supplemental Indenture by and between the Company and the Trustee created and authorized for issuance under the Indenture 7%/7.5% Series B Senior Unsecured Bonds due September 30, 2025 (the "New Bonds") which were subsequently issued following an exchange offer in which holders of the Company's 7% Series A Senior Unsecured Bonds due September 30, 2022 (the "Old Bonds") were offered New Bonds in exchange for their Old Bonds, on a one-for-one basis, in a transaction exempt from registration under Section 3(a)(9) of the Securities Act of 1933, as amended ("Exchange Offer"). The Second Supplemental Indenture also adjusted the definition of "Equity-Bond Ratio" to include cash and cash equivalents in the calculation of such ratio. The Second Supplemental Indenture required the consent and approval of holders of at least a majority of the outstanding Old Bonds, which consent the Company sought and received concurrently with the solicitation of the Exchange Offer.

Based on real estate market conditions, including rising interest rates and lingering effects of the pandemic regarding the market demand for retail real estate properties, the Company was unable to find a buyer for the real estate assets it held in time to pay back the Old Bonds set to mature on September 30, 2022 (the "Old Bond Maturity Date"). The Company decided it would be prudent to maintain the real estate assets it held and work to increase their value so that they would be more desirable to a potential buyer. Therefore, the Company undertook the aforementioned Exchange Offer. The Exchange Offer commenced on March 30, 2022, and ultimately required the consent and approval of holders of at least 75% of the outstanding Old Bonds. Holders of approximately 80.10% of the outstanding Old Bonds elected to participate in and approve the Exchange Offer and consented to the Second Supplemental Indenture. The Exchange Offer closed on September 15, 2022.

Each exchanging holder of Old Bonds received a number of New Bonds equal to the number of Old Bonds being exchanged, on a one-for-one basis. The Old Bonds exchanged were canceled as of September 15, 2022. The remaining approximately 20% of Bonds which were not exchanged were paid in full at maturity on September 30, 2022. The funds for the maturity payment were generated from available cash flow from i) a principal reduction and deferred interest payment on the Ridgmar note, and ii) available cash flow from the rental properties from sales as discussed below and from operating cash flow.

As of June 30, 2025 we had $26,201,550 of the New Bonds outstanding.

We are managed by GK Development, Inc. (d/b/a GK Real Estate), or GK Real Estate, a real estate acquisition, development and management company located in Barrington, Illinois, formed in 1994. We benefit from GK Real Estate's real estate operating and leasing skills, including releasing, redeveloping, renovating, refinancing, repositioning, and selling. As of June 30, 2025 we owned two real properties, had outstanding loans receivable to affiliates for $611,696, and had an investment in land held for redevelopment of $238,625 as described below.

*Lake Mead Crossing*

On November 12, 2015, we acquired, through wholly owned subsidiaries, a commercial rental property located in Henderson, Nevada, known as Lake Mead Crossing, for a total purchase price of $42,065,000, excluding prorations. Upon acquisition, Lake Mead Crossing consisted of multiple buildings aggregating approximately 220,000 square feet of rentable commercial space. Lake Mead Crossing is part of a larger shopping center shadow anchored by a Target consisting of approximately 152,000 square feet. Lake Mead Crossing is owned by two of our subsidiaries, Lake Mead Partners, LLC, or LM Partners, and Lake Mead Development, LLC, or LM Development. Lake Mead Parent, LLC, or LM Parent, which is our wholly-owned subsidiary, is the sole member of LM Partners. Upon acquisition, LM Partners owned a portion of Lake Mead Crossing, consisting of approximately 152,000 square feet of rentable commercial space. Upon acquisition, LM Development owned the other portion of Lake Mead Crossing consisting of approximately 60,000 square feet of rentable commercial space.

Lake Mead Crossing was purchased with the use of mortgage debt and mezzanine debt. LM Partners received mortgage debt of $30,000,000 from Nevada State Bank of which $29,500,000 was funded on the acquisition of Lake Mead Crossing and the unfunded balance of $500,000 was funded into the tenant improvement reserve, to be used to fund leasing commissions and tenant improvements approved by the lender, and LM Development received mortgage debt of $2,700,000 from Barrington Bank & Trust Co., N.A., or Barrington Bank.

In addition to the mortgage financing, LM Partners and LM Development entered into mezzanine loan agreements with GK Real Estate and GK Secured Income IV, LLC or GKSI IV, an affiliate of GK Real Estate. The mezzanine loan agreement with GKSI IV was in the maximum amount of $10,500,000 at 8% interest, or the GKSI IV Loan, allocated between LM Parents and LM Development, of which $0 was outstanding as of June 30, 2019. We ultimately repaid an aggregate of $13,360,704 on the GKSI IV Loan, including $9,978,483 in principal, $1,889,486 as a yield maintenance fee relative to the prepayment of the GKSI IV Loan, and $1,492,735 in an elective funding of a shortfall return to GKSI IV's investors. The mezzanine loan agreement with GK Real Estate was in the maximum amount of $2,608,100, or the GK Real Estate Loan I, allocated between LM Partners and LM Development, all of which was repaid as of June 30, 2019.

After the acquisition of Lake Mead Crossing, our Company, through LM Partners, entered into a Purchase and Sale Agreement with Pacific Dental Services, LLC, or PDCS, a former tenant in Lake Mead Crossing, whereby LM Partners agreed to sell to PDCS the building partially occupied by PDCS, containing approximately 7,790 rentable square feet, for $4,000,000, excluding prorations. The sale closed on March 20, 2017 and resulted in a gain of $1,738,882. $2,700,000 of the sale proceeds was used to reduce the outstanding principal balance on the Nevada State Bank note payable and $980,000 of the sales proceeds was used to reduce the outstanding principal balance on the GK Real Estate Loan I.

We used Bond proceeds to repay the remainder of GK Real Estate Loan I in 2017.

On December 6, 2021, the Company, through LM Development, entered into a Purchase and Sale Agreement, to sell a portion of the LM Development rental property. The disposition closed on December 23, 2021 for a gross sales price of $4,000,000. The primary reason for the disposition was to realize the economic benefit of selling a retail building. The sale resulted in a gain of $2,061,292. $950,000 of the sale proceeds was used to reduce the outstanding principal balance on the Barrington Bank note payable.

On January 21, 2022, the Company, through LM Partners, sold a portion of rental property for $4,215,000, paid closing costs of $344,407 and paid down $3,679,210 to Nevada State Bank. The Company received net proceeds from this sale of $191,383. The company realized a gain on disposition of this portion of the property of $2,323,329.

On February 10, 2022, the Company, through LM Partners additionally sold a portion of rental property for $3,700,000, paid closing costs of $307,950 and paid down $3,000,000 to Nevada State Bank. The Company received net proceeds from this sale of $392,050. The company realized a gain on disposition of this portion of the property of $1,849,693.

On April 6, 2022, the Company, through LM Development contributed a portion of the rental property with a fair market value of $2,000,000, to an affiliated entity, Lake Mead Self-Storage, LLC for a corresponding equity ownership in Lake Mead Self-Storage valued at $2,000,000. The Company paid no closing costs and did not pay down any debt to Barrington Bank. The Company received net proceeds from this contribution of $2,000,000. The company realized a gain on disposition of this portion of the property of $1,223,961. Concurrently, on April 6, 2022, the Company entered into a promissory note receivable with Lake Mead Self-Storage Note, in favor of Lake Mead Self-Storage, Pursuant to the terms of the unsecured note, LM Development initially advanced $254,393 to the borrower for a term of approximately three years and five months, maturing on September 30, 2025. The Borrower can draw up to $1,950,000 in total loan proceeds during the term. The Borrower drew another $1,503,557 for total amount drawn and due to LM Development of $1,757,950 as of June 30, 2022.

On April 21, 2022 the Company, through LM Development, entered into a 3rd Loan Modification Agreement, which extended the maturity to November 12, 2023, with the option to further extend the maturity date to November 12, 2025, upon certain conditions being met. Under the 3<sup>rd</sup> Loan Modification Agreement, the interest rate was modified to an annual interest rate of SOFR + 2.75%.

On August 15, 2022, the Company, through LM Development, entered into a Purchase and Sale Agreement to sell another portion of the rental property. On September 28, 2022, the Company sold this rental property for $2,500,000, paid closing costs of $158,772, contributed to a post-closing escrow of $250,000, and paid down $400,000 with Barrington Bank. The Company received net proceeds from this sale of approximately $1,941,228. The Company realized a gain on disposition of this portion of the Property of approximately $1,776,989.

On June 23, 2022, the Company, through LM Development entered into a Purchase and Sale Agreement, subsequently amended on January 3, 2023, to sell a portion of the rental property. On February 16, 2023, the Company sold this rental property for $740,000, paid closing costs of $49,542 and received net proceeds from this sale of approximately $690,468. The Company realized a gain on disposition of this portion of the Property of $587,406.

On March 23, 2023 LM partners entered into a third loan agreement with Nevada State Bank in the maximum amount of $2,000,000 of which $2,000,000 was funded as of May 1, 2024. The entire loan amount, along with a portion of the restricted escrow held by Nevada State Bank will be used to fund a $2,500,000 tenant allowance due to a new tenant that was approved by the lender.

On December 12, 2023, the Company, through LM Development, entered into a 4th Loan Modification Agreement with Barrington Bank, which extended the maturity to November 12, 2025. Under the 4th Loan Modification Agreement, the interest rate was modified to an annual interest rate of 6.75%, Also, under the 4th Loan Modification Agreement, the bank requires a deposit in the amount of $105,000 to be held by the bank in lieu of the bank waiving certain loan covenants.

On May 1, 2024 LM Partners drew on the Nevada State Bank in the maximum amount of $2,000,000. The entire loan amount, along with a portion of the restricted escrow that was held by Nevada State Bank was used to fund a $2,500,000 tenant allowance.

As of June 30, 2025, the portion of Lake Mead Crossing owned by LM Partners was 98.4% leased and the portion of Lake Mead Crossing owned by LM Development was 62.9% leased.

*LA Fitness Center*

On May 31, 2019, our Company formed GK Clearwater LA Fitness LLC, an Illinois limited liability company ("Clearwater LA Fitness"), as a wholly-owned subsidiary for the purpose of acquiring a fee interest in certain real property located in a portion of the Clearwater development in Oak Brook, Illinois (the "LA Fitness Center") through a special purpose entity.

On July 9, 2019, Clearwater LA Fitness acquired the LA Fitness Center in Oakbrook, Illinois for approximately $15,203,540 net of prorations. After prorations and closing costs, the acquisition was financed using (i) $6,178,383 in cash, and (ii) notes to KeyBank National Association in total principal amount of $8,998,344.

On December 21, 2021, the Company paid down $2,285,697 of the principal. The loan was previously scheduled to mature on July 9, 2022, however, a loan amendment was entered into extending the maturity to October 9, 2023. The interest rate was modified to an annual interest rate of SOFR + 2.50%. The loan is secured by the rental property of Clearwater, and a limited recourse guarantee of an individual related to the Manager. In addition, the loan is subject to certain financial covenant measurements.

Concurrently, on December 21, 2021, Clearwater L.A. Fitness entered into a promissory note agreement with and affiliated company GK Clearwater Retail LLC in the original amount of $2,285,697. The loan bears interest at 9.00%. The note is interest only through maturity of the loan on December 21, 2022.

On April 29, 2022, the Company, through Clearwater, entered into an amended loan agreement with KeyBank, extending the maturity of the loan to October 9, 2023. The interest rate was modified to an annual interest rate of SOFR + 2.25%.

On September 14, 2022, the Company, through Clearwater L. A. Fitness, entered into an amended loan agreement with GK Clearwater Retail, LLC extending the maturity of the loan to December 31 ,2023.

On October 16, 2023, the Company entered into a 3rd Amendment with KeyBank to the loan extending the maturity to October 9, 2024. The interest rate was modified to an annual interest rate of SOFR + 3.50%. As a requisite of the maturity extension, KeyBank requires all net cash flow "excess cash" at the end of each month to be held by the bank in a restricted account to serve as additional collateral for the loan.

On October 11, 2024, the Company entered into a 4th Amendment with KeyBank to the Loan extending the maturity to February 6, 2025. The interest rate on the loan was 7.81%. The loan is secured by the rental property of Clearwater, as well as the rental property acquired by the affiliated company of the Manager, and a limited recourse guarantee of an individual related to the Manager.

In addition, the loan is subject to certain financial covenant measurements. The Company was in compliance with the covenants for the six months ending June 30, 2025.

As of June 30, 2025, LA Fitness Center was 4% leased to a single tenant.

*Ridgmar Loan*

The Company has entered into a senior secured participatory mortgage loan (the "Note") effective July 30, 2021, in favor of GK Preferred Income II (Ridgmar), LLC ("GKPI II") and 1551 Kingsbury Partners SPE, LLC ("Kingsbury" and, together with GKPI II, the "Ridgmar Borrowers"). The Company and the Ridgmar Borrowers are affiliates of one another, and the Ridgmar Loan is a related party transaction. GK Development, Inc. ("GK Real Estate") is the manager of the Company and the Borrowers (the "Manager"). The Manager is the sole director and shareholder of GK Real Estate and effectively manages the Company and the Borrowers. The Manager has a direct and material interest in the transaction described above.

Pursuant to the terms of the Ridgmar Loan, the Company initially advanced $3,700,000 to the Ridgmar Borrowers for a term of three (3) months, originally maturing on October 31, 2021. The Ridgmar Loan is collateralized by a senior security interest on the rental property, Ridgmar Mall. On October 15, 2021, the Company was repaid $200,000 from the Ridgmar Borrowers and simultaneously extended the maturity of the Note until November 30, 2021. On December 1, 2021, the Company was repaid $2,500,000 from the Ridgmar Borrowers decreasing the balance of the Note to $1,000,000 and extended the maturity of the Note until December 31, 2021. The note bore interest at 20% per annum, payable 12% monthly and 8% deferred and due upon maturity of the note.

Concurrently with the Loan, GK Investment Property Holdings II, LLC ("GKIPH") and GK Secured Income V, LLC ("GKSI V") collectively loaned $4,250,000 subsequently increased to $6,850,000, to Ridgmar on terms substantially similar to the terms of the Ridgmar Loan for an aggregate loan amount of $7,950,000 (the "Aggregate Ridgmar Loan"). On July 30, 2021, the Company entered into an intercreditor agreement (the "Intercreditor Agreement"), dated as of July 30, 2021, by and among the Company, GKIPH and GKSI V (collectively, "the Lenders") in order to establish and acknowledge the pari passu ranking of the Lenders' respective loans to Ridgmar and certain other matters. Pursuant to the terms of the Intercreditor Agreement, the Lenders acknowledge that the security interest held by each of the Lenders ranks equally and ratably without priority over one another and that any and all payments under the respective loans as between all Lenders will be paid equally and ratably. The Intercreditor Agreement has been subsequently amended to reflect the changes in the Ridgmar Loan.

Ridgmar acquired Ridgmar Mall as tenants in common in 2013. As a result of the continued decline of retail sales and consumer traffic at regional malls, the value of Ridgmar Mall was subsequently impaired, and ultimately the Ridgmar's senior secured lender and mezzanine lender (together, the "Prior Lenders") foreclosed on the property. The Prior Lenders offered Ridgmar a discounted payoff of $7,950,000 to retire the existing debt on Ridgmar Mall, comprised of a $26,600,000 CMBS mortgage loan and a $10,000,000 mezzanine loan. On July 30, 2021, Ridgmar used the proceeds of the Aggregate Loan to fund the discounted payoff paid to the Prior Lenders. Ridgmar intends to repay the Ridgmar Loan and corresponding GKIPH and GKSI V loans with proceeds of a future land and building sale.

The Company, Ridgmar, GKIPH and GKSI V are each affiliates of one another, and the Loan and each of the GKIPH and GKSI V loans are related party transactions. GK Development, Inc. ("GK Real Estate") is the manager of each of the Company, Ridgmar, GKIPH and GKSI V. Mr. Kholamian is the sole director and shareholder of GK Real Estate and effectively manages the Company, Ridgmar, GKIPH and GKSI V. GK Real Estate has a direct and material interest in the transactions described above.

In the case of any event of default under the Loan, the Company will be entitled to an additional five percent (5%) interest on the Loan until such event of default is cured. The Loan is secured by a first priority lien on the Ridgmar's commercial property, the Ridgmar regional mall ("Ridgmar Mall") located in Ft. Worth, Texas.

On January 1, 2022, the Company increased the outstanding principal balance of the Note by $100,000 and further extended the maturity of the Note until September 30, 2022. The interest rate was reduced to 8% per annum, with principal being repaid based on a 25-year amortization rate.

On September 28, 2022, the Borrowers paid $390,610 of the principal balance of the Note along with $106,756 of deferred interest and simultaneously extended the maturity of the Note until December 31, 2023.

On December 31, 2023, the Ridgmar Borrowers extended the maturity date of the Note to December 31, 2024.

The Company received $111,871 in principal reduction payments from the Borrowers during the six months ended June 30, 2025.

Interest income for the six months ended June 30, 2025 is $16,423, which includes $3,694 of interest receivable as of June 30, 2025.

*Financial Summary*

For the six months ended June 30, 2025, our total revenues from operations amounted to $3,284,052. Operating costs for the same period, including depreciation and amortization of $710,183 but excluding interest expense of $1,830,359, amounted to $1,557,893. This resulted in operating income of $1,726,159. Net income for the six-month period amounted to $81,122 after taking into account the deduction for interest expense of $1,830,359 and then adding back interest income of $35,207, and lease termination income of $150,115.

Comparatively, for the six months ended June 30, 2024, our total revenues from operations amounted to $2,744,327. Operating costs for the same period, including depreciation and amortization of $1,002,469 but excluding interest expense of $1,861,743, amounted to $1,869,692. This resulted in operating income of $874,635. Net loss for the six-month period amounted to $901,953 after taking into account the deduction for interest expense of $1,861,743 and then adding back interest income of $43,554, and miscellaneous income of $41,601.

***Operating Results***

We operate on a calendar year. Set forth below is a discussion of our operating results for the first half of 2025, from January 1, 2025 to June 30, 2025.

As of June 30, 2025, we had the following four assets, (i) a commercial rental property located in Henderson, Nevada, known as Lake Mead Crossing, which consists of multiple buildings aggregating approximately 183,153 square feet of rentable commercial space, (ii) a commercial rental property located in Oakbrook, Illinois, consisting of approximately 49,440 square feet of rentable commercial space, known as LA Fitness, (iii) the Ridgmar Loan, (iv) an investment in Lake Mead Development SB Land for land held for redevelopment into a retail facility.

We are working diligently to identify assets in our target asset class and to acquire such assets in the timeframe that is customary in the real estate industry.

***Liquidity and Capital Resources***

In our offering of a maximum of $50,000,000 of Bonds, purchase price per Bond was $1,000. The Bonds, which bore interest at a fixed rate of 7% per annum, matured on September 30, 2022.

Our short- and long-term liquidity requirements primarily consist of operating expenses, capital expenditures and the repayment of debt, including our new Bonds maturing on September 30, 2025. We conducted the Exchange Offer to our Bondholders to replace the Bonds with the New Bonds, resulting in an extension of the maturity date for three years and an increase in the interest rate on our New Bonds to 7.5%, beginning October 1, 2022.

On September 30, 2022 we used $6,680,450 to repay those Old Bonds that did not participate in the Exchange Offer. The funds for the maturity payment were generated from available cash flow from i) a principal reduction and deferred interest payment on the Note, and ii) available cash flow from the rental properties from sales as discussed above and from operating cash flow. As of June 30, 2025, $26,201,550 of New Bonds remain outstanding.

As of June 30, 2025, we had cash on hand of $1,157,643 and restricted cash (funded reserves) of $906,682. The funded reserves are comprised of (i) tenant improvement / lease commission reserves of $34,502, which is required as a condition precedent of the mortgage loans payable, (ii) lender held reserves of $282,180 to meet certain debt covenants, and (iii) bond cash coverage reserve of $590,000 held at UMB Bank, as trustee of the Old Bonds, as a condition precedent of the current Bond Indenture agreement

**Trend Information**

The recent rise in interest rates, resulting at least in part from measures taken to combat inflation, has adversely affected our ability to dispose of our retail real properties, and may continue to do so in the future.

**Item 2. Other Information**

None.

**Item 3. Financial Statements**

**GK Investment Holdings, LLC**

**(a Delaware limited liability company)**

**Consolidated Financial Statements**

**June 30, 2025**

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**GK Investment Holdings, LLC**

**Table of Contents**

**June 30, 2025**

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| | |
|:---|:---|
| **Consolidated Financial Statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Balance Sheets](#a_001) | [15](#a_001) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Statements of Operations](#a_002) | [16](#a_002) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Statements of Member's (Deficit)](#a_003) | [17](#a_003) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Statements of Cash Flows](#a_004) | [18 – 19](#a_004) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Notes to Consolidated Financial Statements](#a_005) | [20 - 48](#a_005) |

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**GK Investment Holdings, LLC**

**Consolidated Balance Sheets**

**June 30, 2025 and December 31, 2024**

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| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30,**<br>**2025** | <br>**December 31,**<br>**2024** |
| **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;Rental properties | $52044262 | $53336283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Accumulated depreciation | 9805506 | 9150017 |
|  | 42238756 | 44186266 |
| &nbsp;&nbsp;&nbsp;Cash | 1157643 | 204437 |
| &nbsp;&nbsp;&nbsp;Accounts receivable - tenants, net | 357745 | 263670 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | 3694 | 2675 |
| &nbsp;&nbsp;&nbsp;Deferred rent receivable | 544414 | 508850 |
| &nbsp;&nbsp;&nbsp;Deferred leasing costs - net | 859706 | 1036444 |
| &nbsp;&nbsp;&nbsp;Lease intangibles - net | 1461 | 15098 |
| &nbsp;&nbsp;&nbsp;Restricted cash - funded reserves | 906682 | 728993 |
| &nbsp;&nbsp;&nbsp;Notes receivable | 611696 | 323567 |
| &nbsp;&nbsp;&nbsp;Investment in real estate | 238625 | 898247 |
| &nbsp;&nbsp;&nbsp;Other assets | 161063 | 72713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**47081485** | $**48240960** |
| **LIABILITIES AND MEMBER'S DEFICIT** |  |  |
| **LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Notes payable - net | $26643666 | $28005256 |
| &nbsp;&nbsp;&nbsp;Bonds payable - net | 26195833 | 26184398 |
| &nbsp;&nbsp;&nbsp;Lease intangibles - net | 565 | 5840 |
| &nbsp;&nbsp;&nbsp;Accrued interest payable | 530949 | 439270 |
| &nbsp;&nbsp;&nbsp;Other accrued liabilities | 348224 | 433840 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 411324 | 302554 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 54130561 | 55371158 |
| **Member's Deficit** |  |  |
| &nbsp;&nbsp;&nbsp;Member's Deficit | (7049076) | (7130198) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and member's deficit** | $**47081485** | $**48240960** |

---

See Notes to Consolidated Financial Statements

------

**GK Investment Holdings, LLC**

**Consolidated Statements of Operations (Unaudited)**

**Six Months Ended June 30, 2025 and 2024**

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**Six Months**<br>**Ended June 30,**<br>**2025** | **(Unaudited)**<br>**Six Months**<br>**Ended June 30,**<br>**2024** |
| **Revenues** | $**3284052** | $**2744327** |
| **Operating Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses | 405066 | 393377 |
| &nbsp;&nbsp;&nbsp;Insurance | 99654 | 58871 |
| &nbsp;&nbsp;&nbsp;Management fees | 60804 | 111505 |
| &nbsp;&nbsp;&nbsp;Professional fees | 88739 | 124708 |
| &nbsp;&nbsp;&nbsp;Real estate taxes | 193447 | 178762 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 710183 | 1002469 |
|  | **1557893** | **1869692** |
| **Operating Income** | **1726159** | **874635** |
| **Other Income and (Expense)** |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (1830359) | (1861743) |
| &nbsp;&nbsp;&nbsp;Interest income | 35207 | 43554 |
| &nbsp;&nbsp;&nbsp;Lease termination income | 150115 |  |
| &nbsp;&nbsp;&nbsp;Miscellaneous income | - | 41601 |
|  | **(1645037)** | **(1776588)** |
| **Consolidated Net Income (Loss)** | $**81122** | $**(901953)** |

---

See Notes to Consolidated Financial Statements

------

**GK Investment Holdings, LLC**

**Consolidated Statements of Member's (Deficit)**

**Six Months Ended June 30, 2025 and for the Year Ended December 31, 2024**

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30,**<br>**2025** |<br>**December 31,**<br>**2024** |
| **Balance - Beginning of Period** | $(7130198) | $(5769638) |
| Consolidated Net (Loss) | 81122 | (1360560) |
| **Balance - End of Period** | $**(7049076)** | $**(7130198)** |

---

See Notes to Consolidated Financial Statements

------

**GK Investment Holdings, LLC**

**Consolidated Statements of Cash Flows (Unaudited)**

**Six Months Ended June 30, 2025 and 2024**

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**Six Months**<br>**Ended June 30,**<br>**2025** | **(Unaudited)**<br>**Six Months**<br>**Ended June 30,**<br>**2024** |
| **Cash Flows from Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated Net (Loss) | $81122 | $(901953) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile consolidated net loss to net cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 710183 | 1002469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of above-market leases |  | 51370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of below-market leases | (5275) | (62148) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred rent receivable (straight-line rent adjustment) | (35565) | (15155) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs and debt discount | 67276 | 71905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of bond issuance costs and bond discount | 11435 | 11435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable - tenants | (94075) | 209076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | (1019) | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (88475) | (37002) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | 91679 | 107309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | 129739 | 32704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 108770 | 73371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from (used in) operating activities | 975796 | 543596 |
| **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Additions to rental properties | (123410) | (2559301) |
| &nbsp;&nbsp;&nbsp;Payments of deferred leasing commissions | (14700) | (88625) |
| &nbsp;&nbsp;&nbsp;Decreases (Increases) in investments in real estate | 913784 | (85000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from (used in) investing activities | 775674 | (2732926) |

---

See Notes to Consolidated Financial Statements

**GK Investment Holdings, LLC**

**Consolidated Statements of Cash Flows (Unaudited)**

**Six Months Ended June 30, 2025 and 2024**

---

| | | |
|:---|:---|:---|
|  | **(Continued)**<br>**(Unaudited)**<br>**Six Months**<br>**Ended June 30,**<br>**2025** | **(Continued)**<br>**(Unaudited)**<br>**Six Months**<br>**Ended June 30,**<br>**2024** |
| **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of note receivable | $(400000) | $- |
| &nbsp;&nbsp;&nbsp;Repayments from notes receivables | 111871 | 3771 |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable |  | 2000000 |
| &nbsp;&nbsp;&nbsp;Payments of notes payable | (304944) | (363961) |
| &nbsp;&nbsp;&nbsp;Payments of debt issuance costs | - | (28520) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from (used in) financing activities | (593073) | 1611290 |
| **Net Increase (Decrease) in Cash and restricted cash** | 1158396 | (578040) |
| **Cash and restricted cash** - Beginning of period | 905929 | 1745845 |
| **Cash and restricted cash** - End of period | $**2064325** | $**1167805** |
| **Supplemental Disclosure of Cash Flow Information** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $**1659969** | $**1671093** |
| **Classification of Cash and Restricted Cash** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $1157643 | $397019 |
| &nbsp;&nbsp;&nbsp;Restricted cash - funded reserves | 906682 | 770786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Cash and restricted cash** | $**2064325** | $**1167805** |

---

See Notes to Consolidated Financial Statements

**GK Investment Holdings, LLC**

**Note 1 - Organization and Summary of Significant Accounting Policies**

**Description of Business -** On September 14, 2015, GK Investment Holdings, LLC ("GKIH" and/or the "Company"), a Delaware limited liability company was formed with the intent to acquire and lend on existing income producing commercial rental properties for the purpose of financing, holding and operating such properties, and if the need arises, to redevelop the rental properties for an alternative use other than intended when originally acquired. However, GKIH is permitted to transact in any lawful business in addition to that stated above. GKIH anticipates funding acquisitions in part, by offering to investors the opportunity to purchase up to a maximum of $50,000,000 of Bonds of which $26,201,550 were sold and outstanding as of June 30, 2025 and December 31, 2025, respectively (Note 7). The Bonds are unsecured indebtedness of GKIH.

The Company has two classes of units, Class A Units and Class B Units. Fourteen individuals, or the Class A Members, hold all the Class A Units. Four entities, or the Class B Members, hold all the Class B Units. Currently, Class A Units and Class B Units each constitute 50% of the outstanding membership units and voting power, respectively, each a Membership Interest. The members of GKIH have limited liability. Pursuant to the terms of the Limited Liability Company Operating Agreement (the "Agreement"), the Company will exist in perpetuity unless terminated as defined in the Agreement. The Company is managed by GK Development, Inc. (the "Manager" and "Sponsor of the bonds"), an affiliate of one of the members of GKIH.

On October 22, 2015, Lake Mead Parent, LLC ("LM Parent") and Lake Mead Development, LLC ("LM Development"), both Delaware limited liability companies were formed and on October 22, 2015, Lake Mead Partners, LLC ("LM Partners"), a Delaware limited liability company was formed and 100% of LM Partners is owned by LM Parent. On October 21, 2016, 2700 Ygnacio Partners, LLC ("Ygnacio"), a Delaware limited liability company was formed. On May 31, 2019, GK Clearwater LA Fitness, LLC ("Clearwater"), an Illinois limited liability company was formed. LM Parent, LM Development, Ygnacio and Clearwater are 100% owned by GKIH.

The Company's wholly owned subsidiaries as of June 30, 2025, are as follows:

LM Parent – 100% owned by GKIH; owns 100% of LM Partners;

LM Development – 100% owned by GKIH;

Clearwater – 100% owned by GKIH

Lake Mead Development SB Land – 100% owned by LM Development

LM Partners and LM Development were formed to acquire, own, and operate a retail power center known as Lake Mead Crossing, located in Henderson, Nevada ("Lake Mead Crossings"). Lake Mead Crossings was purchased on November 12, 2015. Prior to the purchase of Lake Mead Crossings, GKIH had no activity.

Collectively, the real estate owned by these entities are referred to as the "Rental Properties".

**GK Investment Holdings, LLC**

**Note 1 - Organization and Summary of Significant Accounting Policies (continued)**

The Company has also entered into a note receivable agreement (the "Note") effective July 30, 2021, in favor of GK Preferred Income II (Ridgmar), LLC ("GKPI II") and 1551 Kingsbury Partners SPE, LLC ("Kingsbury" and, together with GKPI II, the "Borrowers").

During the six months ended June 30, 2025, the Borrowers were advanced $400,000 of additional proceeds. The Borrowers also made payments reducing the principal balance of the Note by $111,871. The Borrowers also made interest payments of $16,423 during the six months ended June 30, 2025.

**Allocation of Profits and Losses**- Profits or losses from operations of the Company are allocated to the members of GKIH in their ownership percentages. Gains and losses from the sale, exchange, or other disposition of Company property are allocated to the members of GKIH in their ownership percentages.

**Principles of Consolidation** – The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant material intercompany accounts and transactions have been eliminated in the consolidation. A variable interest entity ("VIE") is an entity in which a controlling financial interest may be achieved through arrangements that do not involve voting interests. The Company has identified several VIEs, but it determined that the Company did not need to consolidate the VIEs for purposes of financial reporting. The Company is not the primary beneficiary of the VIEs nor does it have significant influence through voting or similar rights to direct operations of the VIEs.

**Basis of Accounting**- The Company maintains its accounting records and prepares its consolidated financial statements on an accrual basis, which is in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

**Classification of Assets and Liabilities**- The financial affairs of the Company generally do not involve a business cycle since the realization of assets and the liquidation of liabilities are usually dependent on the Company's circumstances. Accordingly, the classification of current assets and current liabilities is not considered appropriate and has been omitted from the consolidated balance sheets.

**Estimates**- The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

**GK Investment Holdings, LLC**

**Note 1 - Organization and Summary of Significant Accounting Policies (continued)**

**Fair Value of Financial Instruments** - Our financial instruments consist of cash, funded reserves, short-term trade receivables, notes payable and bonds payable. The carrying values of cash, funded reserves, and short-term receivables approximate their fair value due to their short-term maturities. The carrying value of the notes payable and bonds payable approximates their fair value based on interest rates currently obtainable.

**Going Concern Considerations: Upcoming Obligations –** Management believes the accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate continuation of the Company as a going concern for one year after the date that the consolidated financial statements are available to be issued.

The Company had bonds payable obligations totaling $32,902,000 that were set to mature on September 30, 2022. On September 15, 2022, the Company entered into an Exchange Offer and Consent ("Exchange") solicitation and vote with the current bond holders in order to extend the maturity date of the Bonds. The Company needed a participation rate of at least 75% and achieved 80% participation in Exchange offering. The Company will issue a new bond series dated October 1, 2022 at an interest rate of 7.5% to those participating in the Exchange. The new bonds will have a maturity date of September 30, 2025. The remaining 20% of bond holders who did not participate were redeemed on September 30, 2022. The proceeds for the redemption were generated from available cash flow from i) the principal reduction and accrued interest payment of the Ridgmar note, and ii) available cash flow from the rental properties.

On November 13, 2025, Management fully redeemed all of the new bonds through a series of asset liquidations, a refinancing of an outstanding note payable, and incurring new financing on existing assets (see Subsequent Events Note 14). As of the date the consolidated financial statements are available to be issued, the Company has one loan with a principal balance outstanding of approximately $5.8 million that matures within twelve months. The Company sought only short-term extensions with the current lender for this loan because the Company is separately working to refinance the loan prior to the extended the maturity date. Although the Company has a history of demonstrating its ability to successfully refinance its loans as they come due, there can be no assurances that the Company will be successful in its efforts to refinance this loan on favorable terms or at all. While it is not the Company's current plan, the Company also has the option to sell this property securing the loan and use the proceeds to satisfy the outstanding loan obligation. If the Company is ultimately unable to refinance this loan or sell the property prior to maturity, the lender has the right to place the loan in default and ultimately foreclose the property securing the loan. Under this circumstance, the Company would not have any further financial obligation to the lender as the current estimate market value of this property is in excess of the outstanding loan balance.

**GK Investment Holdings, LLC**

**Note 1 - Organization and Summary of Significant Accounting Policies (continued)**

**Cash and Restricted Cash**- The Company maintains cash and restricted cash balances in federally insured financial institutions that, from time to time, exceed the Federal Deposit Insurance Corporation ("FDIC") limits. The Company believes that they are not exposed to any significant credit risk on its cash and restricted cash. Restricted cash consists of tenant improvement/lease commission reserves and bond service reserves. As of June 30, 2025 and December 31, 2024, the Company had cash balances that exceeded the FDIC limits by an aggregate of $1,036,713 and $340,000, respectively.

**Restricted Cash – Funded Reserves** – Funded reserves consist of (a) funds required to be maintained under the terms of the various loan agreements, which reserves have been pledged as additional collateral for those loans requiring funds to be reserved and (b) bond service reserve to be maintained under the bond indenture agreement at the bond trustee's financial institution.

**Revenues from Rental Properties** - Revenues from rental properties are comprised of minimum base rent, percentage rent, lease termination fee income, amortization of above-market and below-market rent adjustments and straight-line rent adjustments. These leases may contain extension and termination options that are predominantly at the discretion of the tenant, provided certain conditions are satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Base
 rental revenues from rental properties are recognized on a straight-line basis over the terms
 of the related leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Certain
 of these leases also provide for percentage rents based upon the level of sales achieved
 by the lessee. We recognize this variable lease consideration only when each tenant's
 sales exceed the applicable sales threshold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We
 amortize any tenant inducements as a reduction of revenue utilizing the straight-line method
 over the term of the related lease or occupancy term of the tenant, if shorter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Rental
 income may also include payments received in connection with lease termination agreements.
 Lease termination fee income is recognized when the lessee provides consideration in
 order to terminate a lease agreement in place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Upon
 acquisition of real estate operating properties, the Company estimates the fair value of
 identified intangible assets and liabilities (including above-market and below-market leases,
 where applicable). The capitalized above-market or below-market intangible is amortized or
 accreted to rental income over the estimated remaining term of the respective leases.

**GK Investment Holdings, LLC**

**Note 1 - Organization and Summary of Significant Accounting Policies (continued)**

Rental income is recorded for the period of occupancy using the effective monthly rent, which is the average monthly rental during the term of the lease. Accordingly, rental income is recognized ratably over the term of the respective leases, inclusive of leases which provide for scheduled rent increases and rental concessions. The difference between rental revenue earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable on the accompanying consolidated balance sheets. Rents received in advance are deferred until they become due and are recorded as prepaid rent in the accompanying consolidated balance sheets.

Additionally, during the term of their respective leases, tenants pay either (i) their pro rata share of real estate taxes, insurance, and other operating expenses (as defined in the underlying lease agreement), or (ii) a fixed rate for recoveries. For most of the Company's leases, the Company receive a fixed payment from the tenant for these reimbursed expenses, which is recognized as revenue on a straight-line basis over the term of the lease. The Company accrues reimbursements from tenants for recoverable portions of all of these expenses as variable lease consideration in the period the applicable expenditures are incurred. The Company recognizes differences between estimated recoveries and the final billed amounts in the subsequent year. These differences were not material in any period presented.

**Notes Receivable** – Notes receivable are stated at the outstanding principal amount, net of an allowance for credit losses. The Company provides an allowance for credit losses, which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. Outstanding notes accrue interest based on the terms of the respective note agreements. A note is considered delinquent when the debtor has missed defined payments. At that time, the note is placed on nonaccrual status and interest accrual ceases and does not resume until the note is no longer classified as delinquent. Delinquent notes are written off based on defined metrics used to assess delinquency and write-off amount. The note receivable is current as of June 30, 2025 and December 31, 2024, respectively. No portion of the Note was written off during the six months ended June 30, 2025, and the year ended December 31, 2024. For both the six months ended June 30, 2025 and the year ended December 31, 2024, the allowance for credit losses was $0.

**Accounts Receivable Tenants and Allowance for Doubtful Accounts** – Tenant receivables are comprised of billed, but uncollected amounts due for monthly rent and other charges required pursuant to existing rental lease agreements. The Company determines an allowance for the uncollectible portion of accrued rents and accounts receivable based upon customer creditworthiness in addition to whether customer balances are expected to be collected. As of June 30, 2025 and December 31, 2024, based on management's assessment, the Company had allowance for doubtful accounts of $0 and $37,021, respectively.

**GK Investment Holdings, LLC**

**Note 1 - Organization and Summary of Significant Accounting Policies (continued)**

**Rental Properties**- Acquisitions of rental properties are generally accounted for as acquisitions of a group of assets, with acquisition costs incurred including title, legal, accounting, brokerage commissions, and other related costs, being capitalized as part of the cost of the assets acquired, instead of accounted for separately as expenses in the period they are incurred. Land, buildings, and other depreciable assets are recorded at cost unless obtained in a business combination. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

The cost of major additions and betterments are capitalized and repairs and maintenance which do not improve or extend the life of the respective assets are charged to operations as incurred. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gains or losses are reflected in operations for the period.

Upon the acquisition of rental properties, the purchase price is allocated to the acquired tangible assets (consisting of land, buildings, and improvements) and acquired intangible assets and liabilities (consisting of above-market and below-market leases, leasing commissions, and acquired in-place leases). The amount allocated to tangible assets is determined using the income approach methodology of valuation, which amount is then allocated to land, buildings and improvements based on management's determination of the relative fair values of the assets, relying in part, upon independent third-party valuation reports. In determining the amount allocated to intangible assets and liabilities, factors are considered by management, which includes an estimate of carrying costs during the expected lease-up periods and estimates of loss of rental revenue during the expected lease-up periods based on current market demand. Management also estimates the costs to execute similar leases, including leasing commissions, tenant improvements, legal and other related costs. Transaction costs associated with asset acquisitions are capitalized and included in the purchase price.

**Assets Held for Sale** – The Company may decide to sell properties that are held for use. The Company records these properties as held for sale when management has committed to a plan to sell the assets, actively seeks a buyer for the assets, and the consummation of the sale is considered probable and is expected within one year. Properties classified as held for sale are reported at the lower of their carrying value or their fair value, less estimated costs to sell. If the carrying value exceeds the fair value, less estimated costs to sell, an impaired charge is recognized. The Company utilized a third-party valuation service to determine the fair value of properties classified as held for sale. The valuation service provider determined fair value based on the three-level valuation hierarchy for fair value measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Based on the results of the valuations the Company determined that no impairment charges should be recorded for the six months ended June 30, 2025 or 2024.

**GK Investment Holdings, LLC**

**Note 1 - Organization and Summary of Significant Accounting Policies (continued)**

**Lease Intangible Assets and Liabilities -** Upon the acquisition of the Properties, the Company recorded above and below-market leases based on the present value (using an interest rate which reflected the risks associated with the leases acquired) of the difference between (a) the contractual amounts to be paid pursuant to the in-place leases and (b) the Company estimates of fair market lease rates for the corresponding in-place leases measured over a period equal to the remaining non-cancelable term of the lease.

Management's determination of the relative fair values of the leases, relied in part, upon independent third-party valuation reports. These assets and liabilities are being amortized or accreted on a straight-line basis over the remaining life of the respective tenant leases and the amortization or accretion is being recorded as an adjustment to rental income, on the accompanying consolidated statements of operations.

Upon the acquisition of the Rental Properties, the Company estimated the value of acquired leasing commissions as the costs the Company would have incurred to lease the Rental Properties to its occupancy level at the date each Rental Property was acquired. Such estimate, which is included in lease intangibles on the accompanying consolidated balance sheets, includes the fair value of leasing commissions, legal costs and other third-party costs that would be incurred to lease the Rental Properties to the level at the date of the acquisition. Such costs are being amortized on a straight-line basis over the remaining life of the respective tenant leases and the amortization is being recorded in depreciation and amortization expense on the accompanying consolidated statements of operations.

Additionally, the Company estimated the value of acquired in-place lease costs as the costs the Company would have incurred to lease the Rental Properties to its occupancy level at the date of acquisition by evaluating the period over which such occupancy level would be achieved and included an estimate of the net operating costs incurred during lease up. In-place lease costs, which are included in lease intangibles on the accompanying consolidated balance sheets, are being amortized on a straight-line basis over the remaining life of the respective tenant leases and the amortization is being recorded in depreciation and amortization expense on the accompanying consolidated statements of operations.

**Impairment of Assets** - The Company reviews the recoverability of long-lived assets including buildings, equipment, and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on the ability to recover the carrying value of the asset from the expected future pretax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such assets, an impairment loss is recognized for the difference between the estimated fair value and the carrying value. The measurement of impairment requires management to make estimates of these cash flows related to long lived assets, as well as other fair value determinations. The Company does not believe that there are any events or circumstances indicating impairment of its investments in the rental properties and related long lived assets as of June 30, 2025 and December 31, 2024.

**GK Investment Holdings, LLC**

**Note 1 - Organization and Summary of Significant Accounting Policies (continued)**

**Debt Issuance Costs and Debt Discounts** – Debt issuance costs represent fees and other third-party costs associated with obtaining financing for the Rental Properties. These costs are amortized on a straight-line basis, which approximates the effective interest method, over the term of the respective agreements. Debt issuance costs are presented on the consolidated balance sheets as a direct reduction from the carrying amount of the notes payable. Unamortized costs are expensed when the associated notes payable are refinanced or repaid before maturity. Amortization expense is included in interest expense on the accompanying consolidated statements of operations.

**Bond Issuance Costs and Bond Discounts** – Bond issuance costs represent underwriting compensation and offering costs and expenses associated with selling the bonds. Bond discounts are a volume-weighted discount (three to five percent) dependent on how many bonds are purchased. Both of these costs are amortized on a straight-line basis, which approximates the effective interest method, over the term of the bonds. Bond issuance and bond discount costs are presented on the consolidated balance sheets as a direct reduction from the carrying amount of the bond liability. Unamortized bond issue and bond discount costs will be expensed if the bonds are repaid before maturity (September 30, 2025). Amortization expense is included in interest expense on the accompanying consolidated statements of operations.

**Deferred Leasing Costs** – Deferred leasing costs represent leasing commissions, legal fees and other third-party costs associated with obtaining tenants for the rental properties. These costs are amortized on a straight-line basis over the terms of the respective leases. Amortization expense is included in depreciation and amortization expense on the accompanying consolidated statements of operations.

**Income Taxes** - The Company's wholly owned subsidiaries are treated as disregarded entities and are treated as a component of GKIH for federal income tax reporting purposes. GKIH is treated as a partnership for federal income tax purposes and consequently, federal income taxes are not payable or provided for by the Company. Members of GKIH are taxed individually on their pro-rata ownership share of the Company's earnings.

U.S. GAAP basis of accounting requires management to evaluate tax positions taken by the Company and to disclose a tax liability (or asset) if the Company has taken uncertain positions that more than likely than not, would not be sustained upon examination by the Internal Revenue Service or other tax authorities. Management has analyzed the tax positions taken by the Company and has concluded that as of June 30, 2025 and December 31, 2024, there were no uncertain tax positions taken or expected to be taken that would require disclosure in the consolidated financial statements.

**GK Investment Holdings, LLC**

**Note 1 - Organization and Summary of Significant Accounting Policies (continued)**

**Equity Investment** – Investments in which the Company does not have a majority voting or financial controlling interest but has the ability to exercise influence are accounted for under the equity method of accounting. Investments accounted for under the equity method are initially recorded at cost and subsequently increases or decreases the investment by its proportionate share of the net income or loss of the investee.

**Segment Reporting –** The Company owns, operates, develops, and redevelops primarily grocery-anchored shopping centers, street retail-based properties, and mixed-use assets. The Company has aggregated all of its properties into one reportable segment due to their similarities with regard to the nature, location and economics of the properties and operational process. The Company is managed as one reporting unit, rather than multiple reporting units, for internal reporting purposes and for internal decision-making by the Company's management, including the chief operating decision maker ("CODM"). Therefore, the Company discloses its operating results in a single reportable segment.

**Reporting Standards and Disclosure Requirements** – The Company has adopted reporting standards and disclosure requirements as a "smaller reporting company" as defined in Rule 405 of the Securities Act, Rule 12b-2 of the Securities Exchange Act of 1934 and item 10(f) of Regulation S-K, as amended. These rules provide scaled disclosure accommodations, the purpose of which is to provide general regulatory relief to qualifying entities. For each of the accounting pronouncements that affect the Company, the Company has elected plans to elect to follow the rule that allows companies engaging in an initial Regulation A offering to follow private company implementation dates.

**Previously Adopted Accounting Pronouncements -** In June 2016, the FASB issued ASU 2016-13, *Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments*. This update enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better calculate credit loss estimates. The guidance applies to most financial assets measured at amortized cost and certain other instruments, such as accounts receivable and loans; however, it does not apply to receivables arising from operating leases accounted for in accordance with ASC Topic 842. ASU 2016-13 requires that the Company estimate the lifetime expected credit loss with respect to applicable receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. The Company is also required to disclose information about how it developed the allowances, including changes in the factors that influenced the Company's estimate of expected credit losses and the reasons for those changes. The Company adopted the update on the required effective date of January 1, 2023, which did not have a material impact on the Company's consolidated financial statements**.**

**GK Investment Holdings, LLC**

**Note 1 - Organization and Summary of Significant Accounting Policies (continued)**

In March 2020, the FASB issued ASU 2020-04, *Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting*. The London Interbank Offered Rate (LIBOR), which is widely used as a reference interest rate in debt agreements and other contracts, was effectively discontinued for new contracts as of December 31, 2021, and its publication for existing contracts is scheduled to be discontinued by June 30, 2023. Financial market regulators in certain jurisdictions throughout the world undertook reference rate reform initiatives to guide the transition and modification of debt agreements and other contracts that are based on LIBOR to the successor reference rate that will replace it. ASU 2020-04 was issued to provide companies that are impacted by these changes with the opportunity to elect certain expedients and exceptions that are intended to ease the potential burden of accounting for or recognizing the effects of reference rate reform on financial reporting. Under ASU 2020-04, companies may generally elect to make use of the expedients and exceptions provided therein for any reference rate contract modifications that *Reference Rate Reform (Topic 848): Deferral of the Sunset of Topic 848*, to extend that timeline from December 31, 2022 to December 31, 2024. The Company is currently evaluating the effect the adoption of this ASU will have on the consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a significant impact on the Company's financial position, results of operations and cash flows.

**Reclassifications** – Certain accounts in the December 31, 2024 financial statements have been reclassified for comparative purposes to conform with the presentation in the current-year consolidated financial statements. These reclassifications had no effect on net loss or cash flows from operations.

**GK Investment Holdings, LLC**

**Note 2 - Rental Properties and Assets Held for Sale**

Rental properties and depreciable lives (excluding amounts associated with assets held for sale) are summarized as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Depreciable**<br>**Life - Years** | **(Unaudited)**<br>**June 30,**<br>**2025** |<br>**December 31,**<br>**2024** |
| Land |  | $13744532 | $13744741 |
| Land improvements | 10 | 2302497 | 2302497 |
| Building and improvements | 35 - 40 | 32065768 | 31941958 |
| Tenant improvements | (a) | 3921065 | 3921065 |
| Construction in progress |  | 10400 | 1426022 |
| &nbsp;&nbsp;&nbsp;Total cost |  | 52044262 | 53336283 |
| Accumulated depreciation |  | 9805506 | 9150017 |
| &nbsp;&nbsp;&nbsp;Net rental properties |  | $42238756 | $44186266 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Depreciated over the lesser of the lease term or economic life.

Total depreciation charged to operations amounted to $655,490 and $728,659 for the six-month periods ended June 30, 2025 and 2024, respectively.

**Note 3 – Deferred Leasing Costs**

Deferred leasing costs (excluding amounts associated with assets held for sale) are summarized as Follows:

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Basis of**<br>**Amortization** | **(Unaudited)**<br>**June 30,**<br>**2025** |<br>**December 31,**<br>**2024** |
| Lease commissions | Lease terms | $1790741 | $1926422 |
| Accumulated amortization |  | 931035 | 889978 |
| &nbsp;&nbsp;&nbsp;Deferred leasing costs - net |  | $859706 | $1036444 |

---

Total amortization expense charged to operations amounted to $41,056 and $90,893 for the six-month periods ended June 30, 2025 and 2024, respectively.

**GK Investment Holdings, LLC**

**Note 3 – Deferred Leasing Costs (continued)**

Future years' amortization for Deferred Leasing Costs is as follows:

---

| | |
|:---|:---|
| **Years Ending December 31** | |
| 2025 | 46546 |
| 2026 | 84366 |
| 2027 | 80689 |
| 2028 | 71625 |
| 2029 | 66910 |
| Thereafter | 509570 |
| &nbsp;&nbsp;&nbsp;Total | $859706 |

---

**Note 4 - Lease Intangibles**

Lease intangible assets (excluding amounts associated with assets held for sale) are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30,**<br>**2025** |<br>**December 31,**<br>**2024** |
| Above-market leases | $513704 | $513704 |
| In-place leases | 1870045 | 1870045 |
|  | 2383749 | 2383749 |
| Accumulated amortization |  |  |
| &nbsp;&nbsp;&nbsp;Above-market leases | 513704 | 513704 |
| &nbsp;&nbsp;&nbsp;In-place leases | 1868584 | 1854947 |
|  | 2382288 | 2368651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease intangible assets - net | $1461 | $15098 |

---

Total amortization expense attributable to above-market leases, which is recorded as a reduction in minimum rent revenue, amounted to $0 and $51,370 for the six-month periods ending June 30, 2025 and 2024, respectively. Total amortization expense, attributable to in-place leases amounted to $13,637 and $182,917 for the six-month periods ending June 30, 2025 and 2024, respectively. Such amounts are included in depreciation and amortization on the accompanying statements of operations.

**GK Investment Holdings, LLC**

**Note 4 - Lease Intangibles (continued)**

Future amortization for lease intangible assets is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Years Ending December 31** | **In-place<br> leases** | **Above-<br> market leases** | **Total** |
| 2025 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $1461 | $1461 |
| 2026 |  |  |  |
| 2027 |  |  |  |
| 2028 |  |  |  |
| 2029 |  |  |  |
| Thereafter | - | - | - |
| &nbsp;&nbsp;&nbsp;Total | $- | $1461 | $1461 |

---

Lease intangible liabilities consisted of:

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30,**<br>**2025** |<br>**December 31,**<br>**2024** |
| Below-market leases | $129345 | $129345 |
| Accumulated accretion | 128780 | 123505 |
| &nbsp;&nbsp;&nbsp;Lease intangible liabilities - net | $565 | $5840 |

---

Total accretion expense of below-market leases, reported as an increase in minimum rent revenue, amounted to $5,275 and $62,148 for the six-month periods ending June 30, 2025 and 2024, respectively.

Future accretion income for lease intangible liabilities (excluding accretion associated with assets held for sale) is as follows:

---

| | |
|:---|:---|
| **Years Ending December 31** | **Total** |
| 2025 | $565 |
| 2026 |  |
| 2027 |  |
| 2028 |  |
| 2029 |  |
| Thereafter | - |
| &nbsp;&nbsp;&nbsp;Total | $565 |

---

**GK Investment Holdings, LLC**

**Note 5 – Restricted Cash - Funded Reserves**

Funded reserves are as follows:

**<u>Lake Mead Partners, LLC ("LM Partners")</u>**

**Tenant improvement/lease commission reserves**: These reserves are required as a condition precedent of the Nevada State Bank mortgage loan payable by LM Partners. On acquisition, an account was established to fund future leasing commissions and tenant improvements. The funds are released from escrow once approved by the lender. LM Partners is required to fund a monthly amount of $2,647 to this reserve account and the funded reserves have been pledged as additional collateral for the Nevada State Bank mortgage loan.

**<u>GK Investment Holdings, LLC:</u>**

**Bond cash coverage reserve**: This reserve is required pursuant to the Bond Indenture Agreement, which requires that 120% of three months' bond interest payments be placed into a reserve account held by the bond trustee.

**<u>Lake Mead Development, LLC ("LM Development") & GK Clearwater LA Fitness, LLC ("Clearwater")</u>**

**Bank Reserves per debt covenants**: These reserves are required as a condition precedent of the Barrington Bank mortgage loan payable by LM Development & KeyBank mortgage loan payable by GK Clearwater LA Fitness, respectively.

Under the 4th Modification Agreement of the Barrington Bank loan, dated December 12, 2023, with LM Development, the bank requires a deposit in the amount of $105,000 to be held by the bank in lieu of the bank waiving certain loan covenants.

Under the third amendment of the KeyBank loan, dated October 16, 2023, with Clearwater, the bank requires all net cash flow "excess cash" at the end of each month to be held by the bank in a restricted account to serve as additional collateral for the loan.

**GK Investment Holdings, LLC**

**Note 5 – Restricted Cash - Funded Reserves (continued)**

Restricted cash - funded reserves consisted of:

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30,**<br>**2025** |<br>**December 31,**<br>**2024** |
| Tenant improvement/lease commission reserves | $34502 | $18574 |
| Bank reserves - per debt covenants | 282180 | 120419 |
| Bond cash coverage reserve | 590000 | 590000 |
|  | $906682 | $728993 |

---

**Note 6 - Notes Payable**

Notes payable consisted of:

**<u>Lake Mead Partners, LLC ("LM Partners")</u>**

Nevada State Bank

Concurrent with the acquisition of the rental property in 2015, LM Partners entered into a loan agreement with Nevada State Bank for $29,500,000 ("NP 1")

NP 1 bears interest at 4.00% per annum and, effective April 2017, is payable in monthly principal and interest payments of $88,387.

NP 1 matures on November 12, 2025, at which time the outstanding principal balance is due. NP 1 is secured by the rental property and had an original $9,166,513 guarantee by GK Development, Inc. NP 1 may be entirely prepaid subject to a prepayment penalty equal to 1% of the amount prepaid during the first five years of the term of the loan (i.e., November 12, 2020). Thereafter, NP 1 can be prepaid without a prepayment penalty.

LM Partners entered into a second loan agreement ("NP 2") on March 23, 2023, with Nevada State Bank in the maximum amount of $2,000,000 all of which was funded on May 1, 2024. The entire loan amount, along with a portion of the restricted escrow held by Nevada State Bank was used to fund a $2,500,000 tenant allowance due to a new tenant approved by the lender.

NP 2 bears interest at SOFR plus 3.00% per annum and, effective May 2024, is payable in monthly principal and interest payments based on a 25-year amortization. NP 2 matures on November 12, 2025. The interest rate as of June 31, 2025, on NP 2 was 7.32%.

Both NP1 and NP2 are subject to certain financial covenants. The Company was in compliance with the covenants for the six months ending June 30, 2025 and 2024. The current amount of the guarantee as of June 30, 2025 is $6,676,561.

**GK Investment Holdings, LLC**

**Note 6 - Notes Payable (continued)**

**<u>GK Secured Income V LLC</u>**

On November 1, 2022, LM Partners entered into a promissory note agreement with an affiliated company GK Secured Income V LLC in the original amount of $500,000. The loan bears interest at 8.00%. Monthly mortgage principal and interest payments are $3,985, based on a 25-year amortization period, through maturity of the loan on December 31, 2025.

**<u>Lake Mead Development, LLC ("LM Development")</u>**

**<u>Barrington Bank & Trust Co., N.A.</u>**

Concurrent with the acquisition of the rental property by LM Development in 2015, LM Development entered into a mortgage loan agreement with Barrington Bank & Trust Co., N.A. in the original amount of $2,700,000.

On April 21, 2022, the Company entered into a 3rd Loan Modification Agreement, which extended the maturity to November 12, 2023, with the option to further extend the maturity date to November 12, 2025, upon certain conditions being met. Under the 3rd Loan Modification Agreement, the interest rate was modified to an annual interest rate of SOFR + 2.75%.

On December 12, 2023, the Company entered into a 4th Loan Modification Agreement, which extended the maturity to November 12, 2025. Under the 4th Loan Modification Agreement, the interest rate was modified to an annual interest rate of 6.75%. Under the 4th Modification Agreement of the Barrington Bank loan, dated December 12, 2023, with LM Development, the bank requires a deposit in the amount of $105,000 to be held by the bank in lieu of the bank waiving certain loan covenants.

**GK Investment Holdings, LLC**

**Note 6 - Notes Payable (continued)**

The loan is secured by the rental property and a personal guarantee by a member of GKIH. The loan may be entirely prepaid without a prepayment penalty.

In addition, the mortgage loan payable is subject to certain financial covenant measurements. The Company was not in compliance with the covenants as of June 30, 2025 and December 31, 2024; however, the Company obtained a waiver from Barrington Bank & Trust for noncompliance.

**<u>GK Clearwater LA Fitness, LLC ("Clearwater")</u>**

**<u>KeyBank</u>**

Concurrent with the acquisition of the rental property by Clearwater, Clearwater, along with an affiliated company of the Manager, entered into a loan agreement with KeyBank in the maximum amount of $12,902,000 of which $9,302,142 was used to fund the acquisition of the rental property.

The loan was previously scheduled to mature on July 9, 2022, however, a loan amendment was entered into on April 29, 2022, extending the maturity to October 9, 2023. The interest rate was modified to an annual interest rate of SOFR + 2.50%.

On October 16, 2023, the Company entered into a 3<sup>rd</sup> Amendment with KeyBank to the Loan extending the maturity to October 9, 2024. The interest rate was modified to an annual interest rate of SOFR + 3.50%. As a requisite of the maturity extension, KeyBank requires all net cash flow "excess cash" at the end of each month to be held by the bank in a restricted account to serve as additional collateral for the loan.

On October 11, 2024, the Company entered into a 4th Amendment with KeyBank to the Loan extending the maturity to February 6, 2025. The interest rate on the loan was 7.81% on June 30, 2025 and December 31, 2024. The loan is secured by the rental property of Clearwater, as well as the rental property acquired by the affiliated company of the Manager, and a limited recourse guarantee of an individual related to the Manager. In addition, the loan is subject to certain financial covenant measurements. The Company was in compliance with the covenants for the periods ending June 30, 2025 and December 31, 2024. On February 19, 2025, the Company entered into a 5th Amendment with KeyBank to the Loan at GK Clearwater LA Fitness extending the maturity to June 1, 2025.

**GK Investment Holdings, LLC**

**Note 6 - Notes Payable (continued)**

On June 5, 2025, the Company entered into a 6th Amendment with KeyBank to the Loan at GK Clearwater LA Fitness extending the maturity to October 1, 2025. As part of the extension, the Company replenished the existing interest reserve $113,544 to the required $160,000 balance.

**<u>GK Clearwater Retail LLC</u>**

On December 21, 2021, Clearwater entered into a promissory note agreement with an affiliated company GK Clearwater Retail LLC in the original amount of $2,285,697. The loan bears interest at 9.00%. The note is interest only through maturity of the loan at which time a balloon payment is due on December 21, 2022. On September 14, 2022, the Company extended the note under the same terms with the maturity extended to December 31, 2023. On December 31, 2023, the Company extended the note with the maturity extended to December 31, 2024. On January 1, 2025, the Company entered into a Substitute Promissory Note with GK Clearwater Retail LLC to extend the maturity to December 31, 2025.

**GK Investment Holdings, LLC**

**Note 6 - Notes Payable (continued)**

Notes payable are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30,**<br>**2025** |<br>**December 31,**<br>**2024** |
| Nevada State Bank (NP 1) | $14691402 | $14921906 |
| Nevada State Bank (NP 2) | 2000000 | 2000000 |
| GK Secured Income V, LLC | 482162 | 485944 |
| Barrington Bank & Trust Co. N.A. | 1590244 | 2845930 |
| KeyBank | 5776794 | 5776794 |
| GK Clearwater Retail, LLC | 2285697 | 2285697 |
| &nbsp;&nbsp;&nbsp;Total Notes payable | $26826299 | $28316271 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Basis of**<br>**Amortization** | **(Unaudited)**<br>**June 30,**<br>**2025** |<br>**December 31,**<br>**2024** |
| Debt issuance costs | Straight-line over loan terms | $1366226 | $1427332 |
| &nbsp;&nbsp;&nbsp;Less: Accumulated amortization |  | 1183593 | 1116317 |
| &nbsp;&nbsp;&nbsp;Total debt issuance costs - net |  | $182633 | $311015 |
| Notes payable - Net |  | $26643666 | $28005256 |

---

Total amortization expense of debt issuance costs charged to operations amounted to $67,276 and $71,905 for the six-month periods ending June 30, 2025 and 2024, respectively. Such amounts have been included in interest expense on the accompanying consolidated statements of operations. Interest expense for the six-month periods ending June 30, 2025 and 2024 was $777,166 and $798,536, respectively, of which $450,191 and $253,364 was incurred but not paid as of the six-month periods ending June 30, 2025 and 2024, respectively.

**GK Investment Holdings, LLC**

**Note 6 - Notes Payable (continued)**

Future minimum principal payments are as follows:

---

| | |
|:---|:---|
| **Years Ending December 31** | **Total** |
| 2025 | $26643666 |
| &nbsp;&nbsp;&nbsp;Total | $26643666 |

---

As of June 30, 2025, all of the Company notes payable financing arrangements with a combined principal balance of $26,643,666 that mature within twelve months of the date that these consolidated financial statements are issued. The Company has considered their short-term (one year or less) liquidity needs in relation to the adequacy of their estimated future cash flows from operating activities and other expected financing sources to meet these needs. They have considered their scheduled notes payable maturity in 2025 as discussed above. The Company expects to meet these short-term liquidity requirements, including the maturing of various note payable borrowing arrangements, through a combination of the following:

---

| |
|:---|
| available cash, cash equivalents, and restricted cash; |
| cash flows from operating activities; |
| refinancing of maturity debt; |
| intended sale of remaining rental properties, as previously discussed. |

---

Management is currently working with lenders to refinance the loans noted above. One of the note agreements is with an affiliated company and has successfully refinanced and extended the maturity date in the past. The second note agreement has also had a successful history of past refinances, as previously discussed. The loans are expected to have customary interest rates similar to current loans. They are subject to formal lender commitment, definitive documentation, and customary conditions. If the Company is ultimately unable to refinance these loans or sell the properties prior to maturity, the lenders have the right to place the loans in default and ultimately foreclose on the properties securing the loans. Under this circumstance, the Company would not have any further financial obligations to the lenders as the current estimated market values of these properties are in excess of the outstanding loan balances.

See Subsequent Events Note 14.

**GK Investment Holdings, LLC**

**Note 7 – Bonds Payable**

The Company had originally offered 7% unsecured bonds at a purchase price of $1,000 per bond. The bonds, which bear interest at a fixed rate of 7% per annum, will mature on September 30, 2022. The bonds are issued under an Indenture Trust Agreement with UMB Bank as the trustee.

Prepayment penalties for calling the bonds early are as follows: (a) 1.02 times the price to the public ($1,000 per bond) if redeemed on or before September 30, 2019; (b) 1.0015 times the price to the public ($1,000 per bond) if redeemed on or after September 30, 2019 but on or before September 30, 2020; and (b) 1.001 times the price to the public ($1,000 per bond) if redeemed on or after September 30, 2020 but on or before September 30, 2021. See Note 9 for specific amounts payable to GK Development, Inc., a related party, as sponsor of the bonds.

On January 15, 2019, the Company adopted a "Bond Redemption Plan" which consists of 1) optional bond redemption and 2) death and disability redemption. For both redemption options, the bondholder must provide written notice and must request redemption of at least 50% of their bond holdings. Once a redemption request has been made, the Company has 120 days to redeem the bonds. In the event of an optional redemption, the price per bond is equal to $850 plus any accrued but unpaid interest.

In the event of a death and disability redemption, and if the redemption is being made from the original purchaser of the bonds, the price per bond is equal to the price paid per bond; for all other persons seeking redemption, the price per bond is equal to $1,000. Both redemption options are subject to a redemption period of three calendar months. During the redemption periods, only 3.75% and 1.25% of the aggregate principal amounts of bonds outstanding can be redeemed for the optional redemption and death and disability redemption, respectively. For both redemption options, cash available for the redemptions is limited to available cash flows from operations or proceeds from the sale of assets.

On September 30, 2019, the Company terminated the offering and as of such date of termination, had sold $33,421,000 of bonds.

On September 15, 2022, the Company entered into an Exchange Offer and Consent (the "Exchange") solicitation and vote with the current bond holders in order to extend the maturity date of the Bonds. The Company needed a participation rate of at least 75% and achieved 80% participation in the Exchange offering. The Company issued a new bond series dated October 1, 2022 at an interest rate of 7.5% to those participating in the Exchange. The new bonds will have a maturity date of September 30, 2025. The new bonds have no prepayment penalty.

The remaining 20% of bond holders who did not participate were redeemed on September 30, 2022. The funds for the redemption were generated from available cash flow from i) a principal reduction and deferred interest paid on the Ridgmar note, and ii) available cash flow from the rental properties from sales as discussed above and from operating cash flow.

**GK Investment Holdings, LLC**

**Note 7 – Bonds Payable (continued)**

As of June 30, 2025 and December 31, 2024, the Company had redeemed $7,219,450, respectively, of outstanding bonds.

The Indenture Trust Agreement places certain financial covenants on the Company. The Company must maintain an Equity-Bond Ratio whereas the property equity values must be at or greater than 70% of the outstanding Bonds payable. The Company was in compliance with the covenants for the six months ending June 30, 2025.

Bonds payable are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30,**<br>**2025** |<br>**December 31,**<br>**2024** |
| Bonds Payable | $26201550 | $26201550 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Basis of<br> Amortization** | | |
| Bond issuance costs | Straight-line over bond terms | $3250986 | $3250986 |
| Bond discount |  | 1031080 | 1031080 |
| &nbsp;&nbsp;&nbsp;Subtotal |  | 4282066 | 4282066 |
| &nbsp;&nbsp;&nbsp;Less: Accumulated amortization |  | 4276349 | 4264914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred bond issuance costs - net |  | 5717 | 17152 |
| Bonds payable - net |  | $26195833 | $26184398 |

---

Total amortization expense of bond issuance costs and bond discount charged to operations amounted to $11,435 for the six-month periods ending June 30, 2025 and 2024. Such amounts have been included in interest expense on the accompanying consolidated statements of operations. Interest expense for the six-month periods ending June 30, 2025 and 2024 was $974,482 and $979,866 respectively, of which $80,758 was incurred but not paid as of the six-month periods ending June 30, 2025 and 2024, respectively.

**GK Investment Holdings, LLC**

**Note 8 - Operating Leases**

The rental properties have entered into leases with tenants which are classified as operating leases.

Lease income under operating leases includes fixed minimum consideration and fixed CAM reimbursements which are accrued on a straight-line basis over the terms of the leases. Variable lease income includes consideration based on sales, as well as reimbursements for real estate taxes, utilities, marketing, and certain other items.

On January 16, 2025, the tenant occupying GK Clearwater LA Fitness LLC terminated their lease with the Company. A termination fee of $120,000 was paid to the Company. Additional consideration as part of the termination agreement included all of the personal property and equipment inside of the space occupied.

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30,**<br>**2025** | **(Unaudited)**<br>**June 30,**<br>**2024** |
| Fixed lease income | $1608075 | $2336355 |
| Variable lease income | 1675976 | 407972 |
| Total lease revenues | $3284052 | $2744327 |

---

Approximate minimum base rentals to be received under these operating leases (excluding assets held for sale) are as follows:

---

| | |
|:---|:---|
| **Years Ending December 31** | **Total** |
| 2025 | $1397000 |
| 2026 | 3033000 |
| 2027 | 3093000 |
| 2028 | 2824000 |
| 2029 | 2796000 |
| Thereafter | 18910000 |
| &nbsp;&nbsp;&nbsp;Total | $32053000 |

---

Several leases contain provisions for the tenants to pay additional rent to cover a portion of the Property's real estate taxes and defined operating expenses.

**GK Investment Holdings, LLC**

**Note 8 - Operating Leases (continued)**

**<u>Lake Mead Partners, LLC</u>**

As of June 30, 2025 and 2024, three tenants currently occupy 58.53% of the portion of the retail power center owned by LM Partners, representing approximately 61.42% and 74.33% of the future minimum base rental revenue of the Company under leases expiring on various dates between 2025 and 2039. These same tenants account for 49.63% and 32.56% of the base minimum rents of the Company for the six months ending June 30, 2025 and 2024, respectively.

**<u>Lake Mead Development, LLC</u>**

As of June 30, 2025 and 2024, one tenant currently occupies 62.90% of the portion of the power center owned by LM Development, representing approximately 24.78% and 4.44% of the future minimum base rental revenue of the Company under a lease expiring on 2041. This same tenant accounted for 2.38% and 8.08% of the base minimum rents of the Company for the six months ending June 30, 2025 and 2024, respectively.

**<u>GK Clearwater LA Fitness, LLC</u>**

As of June 30, 2025 and 2024, one tenant currently occupies 4.03% and 100% of the portion of the retail center owned by Clearwater, representing approximately 0.14% and 4.14% of the future minimum base rental revenue of the Company under a lease expiring in 2026. The tenant accounts for 8.69% and 32.36% of the base minimum rents of the Company for the six months ending June 30, 2025 and 2024, respectively.

**Note 9 - Related Party Transactions**

The Rental Properties are managed by GK Development, Inc., an affiliate of one of the members of GKIH, under management agreements that provide for property management fees equal to 3% of gross monthly revenue collected for Lake Mead Crossings and 5% of gross monthly revenue collected for Clearwater. In addition to these management services, GK Development, Inc. also provides services relating to the acquisition and disposition of real estate property and tenant leasing.

GK Development, Inc. is responsible for promoting the sale of the bonds and is entitled to receive a fee equal to 1.88% of the $50,000,000 gross bond proceeds received up to $940,000. In addition, GK Development is entitled to receive a reimbursement of organization and offering expenses equal to 0.55% of the $50,000,000 gross bond proceeds received up to $275,000 and a reimbursement of Blue-Sky filing fees equal to 0.15% of the $50,000,000 gross bond proceeds received up to $75,000. In the aggregate, GK Development, Inc. is entitled to receive 2.58% of the gross bond proceeds received.

**GK Investment Holdings, LLC**

**Note 9 - Related Party Transactions (continued)**

With respect to related parties, amounts incurred consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30,**<br>**2025** | **(Unaudited)**<br>**June 30,**<br>**2024** |
| Management fees (3% or 5% of gross collections) | $76837 | $111505 |
| Disposition Fee (2% of the sale price) |  |  |
| Leasing commissions - capitalized | 14875 |  |
| Reimbursed expenses | 183402 | 24923 |
|  | $**275114** | $**136428** |

---

At June 30, 2025 and December 31, 2024, $56,248 and $116,293, respectively, was owed to GK Development, Inc., and is included in other liabilities on the accompanying consolidated balance sheets, related to management fees and reimbursements due to GK Development, Inc.

**Note 10 - Note receivable**

The Company entered into a note receivable agreement (the "Note") effective July 30, 2021, in favor of GK Preferred Income II (Ridgmar), LLC and 1551 Kingsbury Partners SPE, LLC ("Kingsbury" and, together with GKPI II, the "Borrowers"). Pursuant to the terms of the Note, the Company initially advanced $3,700,000 to the Borrowers for a term of three (3) months, maturing on October 31, 2021. The Note is collateralized by a senior secured participatory mortgage loan on the rental property, Ridgmar Mall. On October 15, 2021, the Borrowers paid $200,000 of the principal balance of the Note and simultaneously extended the maturity of the Note until November 30, 2021. On December 1, 2021, the Borrowers paid $2,500,000 of the principal balance leaving a remaining unpaid principal of $1,000,000 and extended the maturity of the Note until December 31, 2021.

The Note bore interest at 20% per annum, payable 12% monthly and 8% deferred and due upon maturity of the Note. On January 1, 2022, the Company increased the outstanding principal balance of the Note by $100,000 and further extended the maturity of the Note until September 30, 2022. The interest rate was reduced to 8% per annum, with the principal being repaid based on a 25-year amortization rate. On September 28, 2022, the Borrowers paid $390,610 of the principal balance of the Note along with $106,756 of deferred interest and simultaneously extended the maturity of the Note until December 31, 2023. On December 31, 2023, the Borrowers extended the maturity date of the Note until December 31, 2024. During the twelve months ending December 31, 2024, the Borrowers paid $367,284 of the principal balance of the Note. On December 31, 2024, the Borrowers extended the maturity date of the Note until December 31, 2025.

**GK Investment Holdings, LLC**

**Note 10 — Note receivable (continued)**

Interest income for the six months ended June 30, 2025 and 2024, is $16,423 and $33,407, which includes $3,694 and $5,497 of interest receivable as of June 30, 2025 and 2024, respectively.

**Note 11 —Information about variable interest entities**

As described in Note 11, the Company issued a note receivable to GK Preferred Income II (Ridgmar), LLC and 1551 Kingsbury Partners SPE, LLC ("Kingsbury" and, together with GKPI II, the "Ridgmar") on July 30, 2021. The activities that most significantly impact Ridgmar's economic performance are from owning and operating real estate. This entity is considered to be a variable interest entity because it does not have sufficient equity to carry out its principal activities without the subordinated financial support provided by the loans from the Company. The Company determined that it is not the primary beneficiary of Ridgmar because it does not have the power through voting or similar rights to direct rental operations of Ridgmar, which represent its most significant activities. The Company does not have equity investments in Ridgmar.

As of June 30, 2025 and December 31, 2024, the Company's maximum exposure to loss as a result of its Involvement with Ridgmar is approximately $465,000 and $358,000, respectively, which represents the outstanding balance of the notes receivable, accrued interest receivable, and estimated future payments per the terms of the notes receivable agreements.

**Note 12 —Segment Reporting**

The Company operates as a single reporting segment that derives revenues primarily from rental income. The accounting policies are consistent with those described above in Note 1. The Company's CODM is the Chief Executive Officer. Net operating income (NOI) is the measure used by the Company's CODM to assess the operating segment's performance. The Company defines NOI as rental income less property expenses, including real estate taxes. The Company also excludes depreciation and amortization, interest, impairments and gains and losses of real estate assets and other significant infrequent items that create volatility in our earnings and make it difficult to determine the earnings generated by our core ongoing business. NOI is not a measure of operating income or cash flows from operating activities of cash available to fund cash needs. As a result, NOI should not be considered as an alternative as measured by GAAP and is not indicative of cash available to fund cash available to fund cash needs, nor should it be considered as an alternative to cash flows or as a measure of liquidity. Not all companies calculate NOI in the same manner.

**GK Investment Holdings, LLC**

**Note 12 —Segment Reporting (continued)**

The Company considers NOI to be an appropriate supplemental measure to net income because it provides additional information to allow management, investors, and our current and potential creditors to evaluate and compare our core operating results. The CODM does not evaluate the operating segment or make decisions regarding the operating segment based on assets. Consequently, we do not disclose total assets.

**Note 13 – Investments in Real estate**

On December 13, 2024, Lake Mead Self Storage LLC, through LMSS Developer, a related party entered into a Purchase and Sale Agreement to sell the self-storage rental property. On February 19, 2025, the related party sold this self-storage rental property for $16,100,000.

The following table summarizes the net sale proceeds received by the related party at the date of disposition:

---

| | |
|:---|:---|
| Gross Proceeds from Sale | $16100000 |
| less: |  |
| &nbsp;&nbsp;&nbsp;Note payable extinguished | 10624000 |
| &nbsp;&nbsp;&nbsp;Interest expense on note payable extinguished | 18882 |
| &nbsp;&nbsp;&nbsp;Closing costs associated with disposal of rental property | 596334 |
| &nbsp;&nbsp;&nbsp;Closing prorations associated with other tenant amounts | 614 |
| &nbsp;&nbsp;&nbsp;Net Sale Proceeds from Disposition of Self Storage Rental Property | $4860170 |

---

On February 20, 2025, LM Development received $2,044,534 from the related party pertaining to the sale of the self-storage retail property. The amount included an 8% preferred return of $323,642, a return of original equity of $1,652,118, and a distribution of excess cash of $68,774.

**Note 14—Subsequent Events**

On July 1, 2025, LM Development LLC, through Lake Mead Development SB Land, LLC, a wholly owned subsidiary entered into a Purchase and Sale Agreement to sell a retail rental property. On July 31, 2025, the wholly owned subsidiary sold this retail rental property for $3,572,000.

**GK Investment Holdings, LLC**

**Note 14—Subsequent Events (continued)**

The following table summarizes the net sale proceeds received by the related party at the date of disposition:

---

| | |
|:---|:---|
| Gross Proceeds from Sale | $3572000 |
| less: |  |
| &nbsp;&nbsp;&nbsp;Note payable extinguished | 1670000 |
| &nbsp;&nbsp;&nbsp;Interest expense on note payable extinguished | 700 |
| &nbsp;&nbsp;&nbsp;Closing costs associated with disposal of rental property | 238142 |
| &nbsp;&nbsp;&nbsp;Closing prorations associated with other tenant amounts | 1435 |
| &nbsp;&nbsp;&nbsp;Net Sale Proceeds from Disposition of Retail Rental Property | $1661723 |

---

On September 30, 2025, the Company partially redeemed its bonds payable. The Company paid $2,000,000 as a partial redemption. In addition, the Company paid $80,758 of accrued interest due to the bond holders. The total payment was $2,080,758. As of September 30, 2025, the remaining balance of the bond payable was $24,201,550.

On October 1, 2025, The Company was in default on the non-payment of the remaining portion of the then remaining outstanding bonds.

On October 3, 2025, the Company entered into a 7th Amendment with KeyBank to the Loan at GK Clearwater LA Fitness extending the maturity to February 1, 2026. As part of the extension, the Company replenished the existing interest reserve to the required $160,000 balance.

On October 15, 2025, LM Development refinanced the existing Note with Barrington Bank. LM Development increased the Note by $2,391,812 for a new balance of $3,950,000, paid $40,457 in refinance costs, funded future escrow holdbacks of $1,075,000, and received $1,276,355 in net refinancing proceeds. The Note matures on November 12, 2030. LM Development entered into a fixed rate swap agreement with the interest rate of 5.55%.

On August 13, 2025, LM Partners entered into a Purchase and Sale Agreement, subsequently amended and reinstated on September 19, 2025, to sell a retail rental property. On October 27, 2025, LM Partners sold this retail rental property for $3,550,000.

The following table summarizes the net sale proceeds received by the related party at the date of disposition:

---

| | |
|:---|:---|
| Gross Proceeds from Sale | $3550000 |
| less: |  |
| &nbsp;&nbsp;&nbsp;Note payable extinguished | 1000000 |
| &nbsp;&nbsp;&nbsp;Closing costs associated with disposal of rental property | 396516 |
| &nbsp;&nbsp;&nbsp;Closing prorations associated with other tenant amounts | 28226 |
| &nbsp;&nbsp;&nbsp;Net Sale Proceeds from Disposition of Retail Rental Property | $2125258 |

---

**GK Investment Holdings, LLC**

**Note 14—Subsequent Events (continued)**

On October 31, 2025, the Company made a payment on account to partially redeem its bonds payable. The Company paid $2,000,000 as a partial redemption. In addition, the Company paid $154,161 of accrued interest due to the bond holders. The total payment was $2,154,161. As of October 31, 2025, the remaining balance of the bond payable was $22,201,550.

On November 12, 2025, the Company borrowed $8,400,000 from a related-party Lake Mead Land, LLC, paid $306,016 in finance costs, and received $8,168,984 in net financing proceeds. The note matures on May 12, 2027, and has a variable interest rate of the greater of the US Prime Rate plus 4.00% or 12.25%.

On November 12, 2025, LM Partners, through Lake Mead Partners SPE, LLC, a wholly owned subsidiary, borrowed $28,000,000 from Zions Bancorporation N.A., repaid existing debt of $15,564,956 to Nevada State Bank, paid $487,797 in finance costs, funded future escrow holdbacks of $357,387 and received $11,589,860 in net financing proceeds. The Note matures on November 12, 2030, and has a fixed interest rate of 6.71%.

On November 13, 2025, the Company made a payment to redeem the remaining amount of the outstanding defaulted bonds payable. The Company paid a total of $21,681,171 which included $22,201,550 as a remaining redemption of the bonds, $69,621 of accrued interest, and a credit of $590,000 from the bond cash coverage reserve held by the trustee of the bondholders. As of November 13, 2025, the remaining balance of the bond payable was $0, and the bonds were fully redeemed.

On November 17, 2025, the Company borrowed $614,525 from a related-party GK Investment Holdings III LLC and received $550,000 against the amount available to be drawn. The short-term advance matures on June 30, 2026, and has an interest rate of 8.00%.

On December 9, 2025, the Company entered into a Substitute Promissory Note Agreement with GK Clearwater Retail LLC to extend the maturity of its loan to December 31, 2026.

On December 9, 2025, LM Partners entered into a Substitute Promissory Note Agreement with GK Secured Income V LLC to extend the maturity of its loan to December 31, 2026.

The consolidated financial statements and related disclosures include evaluation of events up through and including May 21, 2026, which is the date the consolidated financial statements were available to be issued.

**Item 4. Exhibits**

---

| | |
|:---|:---|
| **Exhibit <br> Number** | **Exhibit Description** |
| [(2)(a)](http://www.sec.gov/Archives/edgar/data/1656108/000147793215007747/gkinvestment_ex2a.htm) | [Certificate of Formation of the Company, incorporated by reference to Exhibit (2)(a) to the Company's Offering Statement on Form 1-A filed on December 23, 2015.](http://www.sec.gov/Archives/edgar/data/1656108/000147793215007747/gkinvestment_ex2a.htm) |
| [(2)(b)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216008677/gkinvestments_ex2b.htm) | [Limited Liability Company Agreement of the Company, incorporated by reference to Exhibit (2)(b) to the Company's First Pre-Qualification Amendment to its Offering Statement on Form 1-A filed on February 18, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216008677/gkinvestments_ex2b.htm) |
| [(3)(a)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex61.htm) | [Indenture between our company and the trustee, incorporated by reference to Exhibit 6.1 to the Company's Current Report on Form 1-U filed on October 6, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex61.htm) |
| [(3)(b)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216013771/gkinvestment_ex31.htm) | [First Supplemental Indenture between our company and the trustee, incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 1-U filed on November 22, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216013771/gkinvestment_ex31.htm) |
| [(3)(c)](https://www.sec.gov/Archives/edgar/data/1656108/000165495422013256/gkiph_ex31.htm) | [Second Supplemental Indenture between GK Investment Holdings, LLC and UMB Bank, N.A., as trustee, dated as of September 7, 2022, incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 1-U filed on October 3, 2022.](https://www.sec.gov/Archives/edgar/data/1656108/000165495422013256/gkiph_ex31.htm) |
| [(3)(d)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012630/gkinvestment_ex3b.htm) | [Form of Unsecured Bond, incorporated by reference to Exhibit (3)(b) to the Company's Fourth Pre-Qualification Amendment to its Offering Statement on Form 1-A filed on September 22, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012630/gkinvestment_ex3b.htm) |
| [(4)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216010081/gkinvestment_ex4.htm) | [Subscription Agreement, incorporated by reference to Exhibit (4) to the Company's Second Pre-Qualification Amendment to its Offering Statement on Form 1-A filed on May 5, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216010081/gkinvestment_ex4.htm) |
| [(6)(a)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex63.htm) | [Forced Sale Agreement among our company, the trustee and 1551 Kingsbury Partners, L.L.C, incorporated by reference to Exhibit 6.3 to the Company's Current Report on Form 1-U filed on October 6, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex63.htm) |
| [(6)(b)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex64.htm) | [Forced Sale Agreement among our company, the trustee, and GKPI I Partners (Lakeview Square), LLC, incorporated by reference to Exhibit 6.4 to the Company's Current Report on Form 1-U filed on October 6, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex64.htm) |
| [(6)(c)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex65.htm) | [Forced Sale Agreement among our company, the trustee, and Garo Kholamian, incorporated by reference to Exhibit 6.5 to the Company's Current Report on Form 1-U filed on October 6, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex65.htm) |
| [(6)(d)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex66.htm) | [Loan Agreement between our company and 1551 Kingsbury Partners, L.L.C., incorporated by reference to Exhibit 6.6 to the Company's Current Report on Form 1-U filed on October 6, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex66.htm) |
| [(6)(e)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex68.htm) | [Loan Agreement between our company and Garo Kholamian, incorporated by reference to Exhibit 6.8 to the Company's Current Report on Form 1-U filed on October 6, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex68.htm) |
| [(6)(f)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex67.htm) | [Loan Agreement between our company and GKPI I Partners (Lakeview Square), LLC, incorporated by reference to Exhibit 6.7 to the Company's Current Report on Form 1-U filed on October 6, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex67.htm) |
| [6(g)](https://www.sec.gov/Archives/edgar/data/1656108/000165495421010463/gkih_ex6g.htm) | [Promissory Note by GK Preferred Income II (Ridgmar) SPE, LLC and 1551 Kingsbury Partners SPE, LLC, as Borrowers, in favor of GK Investment Holdings, LLC, as Lender, dated as of July 30, 2021, incorporated by reference to Exhibit (6)(g) to the Company's Form 1-SA filed on September 28, 2021.](https://www.sec.gov/Archives/edgar/data/1656108/000165495421010463/gkih_ex6g.htm) |

---

---

| | |
|:---|:---|
| [6(h)](https://www.sec.gov/Archives/edgar/data/1656108/000165495421010463/gkih_ex6h.htm) | [Deed of Trust, Assignment of Leases and Rents and Security Agreement by and among GK Preferred Income II (Ridgmar) SPE, LLC and 1551 Kingsbury Partners SPE, LLC, as Trustors, and Rebecca S. Conrad, as Trustee, for the benefit of GK Investment Holdings, LLC, as Beneficiary, dated as of August 16, 2021, incorporated by reference to Exhibit (6)(h) to the Company's Form 1-SA filed on September 28, 2021.](https://www.sec.gov/Archives/edgar/data/1656108/000165495421010463/gkih_ex6h.htm) |
| [6(i)](https://www.sec.gov/Archives/edgar/data/1656108/000165495421010463/gkih_ex6i.htm) | [Intercreditor Agreement by and among GK Investment Holdings, LLC, GK Investment Property Holdings II, LLC and GK Secured Income V, LLC, dated as of July 30, 2021, incorporated by reference to Exhibit (6)(i) to the Company's Form 1-SA filed on September 28, 2021.](https://www.sec.gov/Archives/edgar/data/1656108/000165495421010463/gkih_ex6i.htm) |
| [6(j)](https://www.sec.gov/Archives/edgar/data/1656108/000110465924056281/tm2413149d1_ex6-j.htm) | [Term Loan Agreement by and between ZIONS BANCORPORATION, N.A. Dba NEVADA STATE BANK, as the Lender, and LAKE MEAD PARTNERS, LLC, a Delaware limited-liability company as the borrower, dated March 22, 2023, incorporated by reference to Exhibit 6(j) to the Company's Annual Report on Form 1-K filed on May 2, 2024.](https://www.sec.gov/Archives/edgar/data/1656108/000110465924056281/tm2413149d1_ex6-j.htm) |
| [6(k)](https://www.sec.gov/Archives/edgar/data/1656108/000110465924056281/tm2413149d1_ex6-k.htm) | [Fourth Loan Modification Agreement by and among Barrington Bank & Trust Company, N.A., the lender, and Lake Mead Development, LLC, as Borrower, and Garo Kholamian, as Guarantor, dated December 12, 2023, incorporated by reference to Exhibit 6(k) to the Company's Annual Report on Form 1-K filed on May 2, 2024.](https://www.sec.gov/Archives/edgar/data/1656108/000110465924056281/tm2413149d1_ex6-k.htm) |
| [6(l)](https://www.sec.gov/Archives/edgar/data/1656108/000110465924056281/tm2413149d1_ex6-l.htm) | [Third Amendment to Loan Documents by and among GK Clearwater LA Fitness LLC, as borrower, Garo Kholamian, Guarantor, and KeyBank National Association dated as of October 16, 2023, incorporated by reference to Exhibit 6(l) to the Company's Annual Report on Form 1-K filed on May 2, 2024.](https://www.sec.gov/Archives/edgar/data/1656108/000110465924056281/tm2413149d1_ex6-l.htm) |
| [6(m)](tm2616098d1_ex6-m.htm) | [Substitute Promissory Note by GK Preferred Income II (Ridgmar) SPE, LLC and 1551 Kingsbury Partners SPE, LLC, as Borrowers, in favor of GK Investment Holdings, LLC, as Lender, dated as of January 1, 2022, in the original principal sum of $1,100,000.00.](tm2616098d1_ex6-m.htm) |
| [6(n)](tm2616098d1_ex6-n.htm) | [Substitute Promissory Note by GK Preferred Income II (Ridgmar) SPE, LLC and 1551 Kingsbury Partners SPE, LLC, as Borrowers, in favor of GK Investment Holdings, LLC, as Lender, dated as of September 1, 2022, in the original principal sum of $700,000.00.](tm2616098d1_ex6-n.htm) |
| [6(o)](tm2616098d1_ex6-o.htm) | [Substitute Promissory Note by GK Preferred Income II (Ridgmar) SPE, LLC and 1551 Kingsbury Partners SPE, LLC, as Borrowers, in favor of GK Investment Holdings, LLC, as Lender, dated as of January 1, 2024, in the original principal sum of $690,849.82.](tm2616098d1_ex6-o.htm) |
| [6(p)](tm2616098d1_ex6-p.htm) | [Promissory Note by GK Clearwater LA Fitness LLC, as Maker, in favor of GK Clearwater Retail LLC, as Holder, dated as of December 21, 2021, in the original principal sum of $2,285,696.89.](tm2616098d1_ex6-p.htm) |
| [6(q)](tm2616098d1_ex6-q.htm) | [Promissory Note by Lake Mead Self-Storage LLC, as Borrower, in favor of Lake Mead Development, LLC, as Lender, dated as of April 6, 2022, in the original principal sum of $1,950,000.00.](tm2616098d1_ex6-q.htm) |
| [6(r)](tm2616098d1_ex6-r.htm) | [Fourth Amendment to Loan Documents by and among GK Clearwater LA Fitness LLC, as Borrower, Garo Kholamian, as Guarantor, and KeyBank National Association, as Lender, dated as of October 11, 2024.](tm2616098d1_ex6-r.htm) |
| [(8)](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex62.htm) | [Subscription Escrow Agreement among our company, JCC Advisors, LLC and UMB Bank, National Association, incorporated by reference to Exhibit 6.2 to the Company's Current Report on Form 1-U filed on October 6, 2016.](http://www.sec.gov/Archives/edgar/data/1656108/000147793216012836/gkinvestment_ex62.htm) |

---

**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **GK Investment Holdings, LLC,** a Delaware limited liability company | **GK Investment Holdings, LLC,** a Delaware limited liability company |
| By: | **GK Development, Inc., d/b/a GK Real Estate** |
|  | an Illinois corporation, Manager |

---

---

| | |
|:---|:---|
| By: | */s/ Garo Kholamian* |
| Name: | Garo Kholamian |
| Its: | Sole Director |
| Date: | June 2, 2026 |

---

Pursuant to the requirements of Regulation A, this report has been signed below by the following persons on behalf of the issuer and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| By: | */s/ Garo Kholamian* |
| Name: | Garo Kholamian |
| Its: | President of our manager (Principal Executive Officer) |
| Date: | June 2, 2026 |

---

---

| | |
|:---|:---|
| By: | /s/ *Steven P Higdon* |
| Name: | Steven P. Higdon |
| Its: | Chief Financial Officer |
|  | (Principal Financial Officer and Principal Accounting Officer) |
| Date: | June 2, 2026 |

---

## Ex1Sa-6

**Exhibit 6(m)**

**SUBSTITUTE PROMISSORY NOTE**

---

| | |
|:---|:---|
| $1100000.00 | Date: January 1, 2022 |
|  | Maturity Date: December 31, 2022 |

---

FOR VALUE RECEIVED, GK PREFERRED INCOME II (RIDGMAR) SPE, LLC, a Delaware limited liability company <u>("GK Borrower")</u> and 1551 KINGSBURY PARTNERS SPE, LLC, a Delaware limited liability company <u>("Kingsbury Borrower";</u> and together with GK Borrower, individually or collectively, as the context requires, <u>"Borrower"),</u> jointly and severally, hereby promise to pay to the order of GK INVESTMENT HOLDINGS, LLC, a Delaware limited liability company <u>("Lender")</u> the principal sum of ONE MILLION ONE HUNDRED THOUSAND AND 00/100 DOLLARS ($1,100,000.00), with interest thereon, according to the terms of this Substitute Promissory Note (this <u>"Note")</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Interest Rate.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 The unpaid principal balance of this Note shall bear interest from the date of this Note through the Maturity Date at a rate equal to eight percent (8%) per annum (the <u>"Interest Rate").</u> Interest shall be calculated on the basis of a 360-day year and the actual number of days elapsed in any portion of a month in which interest is due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 From and after the Maturity Date or upon the occurrence and during the continuance of an Event of Default (as defined below) interest shall accrue on the unpaid principal balance of this Note until paid at a rate equal to five percent (5.00%) per annum in excess of the Interest Rate (the <u>"Default Interest Rate").</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 No clause or provision in this Note shall be construed or shall so operate (a) to raise the Interest Rate set forth in this Note above the lawful maximum, if any, in effect from time to time in the applicable jurisdiction for loans to borrowers of the type, in the amount, for the purposes, and otherwise of the kind contemplated, or (b) to require the payment or the doing of any act contrary to law, but if any clause or provision contained shall otherwise so operate this Note, in whole or in part, then (i) such clauses or provisions shall be deemed modified to the extent necessary to be in compliance with the law, or (ii) to the extent not possible, shall be deemed void as though not contained and the remainder of this Note shall remain operative and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Payments.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Payments under this Note, if not sooner paid or declared to be due in accordance with the terms hereof, shall be made as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Commencing on January 1, 2022 and continuing on the first day of each month thereafter through and including the month in which the Maturity Date occurs, Borrower shall make twelve (12) monthly payments of principal and interest in the amount of $8,570.87 each, which monthly payment shall be calculated based upon a twenty-five (25) year amortization period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The unpaid principal balance of this Note, if not sooner paid or declared to be due in accordance with the terms hereof, together with all accrued and unpaid interest thereon and any other amounts due and payable hereunder, shall be due and payable in full on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Borrower may prepay this Note, in whole or in part, at any time without prepayment penalty or premium. Prepayments shall be allocated among principal, interest and fees at the sole discretion of the Lender unless otherwise agreed or required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Borrower will pay the obligations due under this Note to Lender at 257 East Main Street, Suite 200, Barrington, Illinois 60010, or at such other place as the Lender may designate from time to time in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Borrower agrees that to the extent any payment is received by Lender in connection with this Note, and all or any part of such payment is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid by Lender or paid over to a trustee, receiver or any other entity, whether under any bankruptcy act or otherwise (any such payment is hereinafter referred to as a <u>"Preferential Payment"),</u> then this Note shall continue to be effective or shall be reinstated, as the case may be, and whether or not Lender is in possession of this Note, and, to the extent of such payment or repayment by Lender intended to be satisfied by such Preferential Payment shall be revived and continued in full force and effect as if said Preferential Payment had not been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Borrower hereby acknowledges and agrees that the payment obligations due under this Note are subject to that certain Amended and Restated Intercreditor Agreement dated as of December 1, 2021, as amended from time to time, by and among Lender, GK Investment Property Holdings II, LLC, a Delaware limited liability company and GK Secured Income V, LLC, a Delaware limited liability company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Security.** The payment and performance of all of the obligations represented by this Note are evidenced and/or secured by, among other things, (i) that certain Deed of Trust, Assignment of Leases and Rents and Security Agreement dated as of August 16, 2021 and recorded by the Tarrant County Clerk on August 19, 2021 as Document D221240550, as amended from time to time, granting a first priority lien, mortgage and security interest to the Lender in the real property commonly known as **1888** Green Oaks Road, Fort Worth, Tarrant County, Texas (the <u>"Property");</u> and (ii) such other documents given to evidence or secure payment of this Note (collectively, the <u>"Loan Documents").</u> Reference is hereby made to the Loan Documents, which are incorporated herein by reference, for a statement of the covenants and agreements contained therein, a statement of the rights, remedies and security afforded thereby, and all matters contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Use of Proceeds.** The proceeds of this Note shall be used by Borrower solely for the purpose of effectuating payment a portion of the discounted payoff amounts paid to Borrower's former senior secured lender and mezzanine lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Default.** The occurrence and continuance of any one or more of the following events shall be considered an <u>"Event of Default":</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Borrower fails to pay when due any amount payable under this Note, within five (5) days of the due date for such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 The commencement of any proceeding in bankruptcy by or against Borrower or alleging that Borrower is insolvent or unable to pay its debts as they mature, or for the readjustment of Borrower's debts, whether under the United States Bankruptcy Code or under any other law, whether state or federal, now or hereafter existing, for the relief of debtors, or the commencement of any analogous statutory or non-statutory proceeding involving Borrower; provided, however, that if such commencement of proceedings against Borrower is involuntary, such action shall not constitute an Event of Default unless such appointment is not revoked or such proceeding is not dismissed within sixty (60) days after the commencement of such proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Remedies.** At the election of Lender, and without notice, the principal balance remaining unpaid under this Note and all accrued and unpaid interest thereon and any other amounts due hereunder, shall be and become immediately due and payable in full upon the occurrence of an Event of Default. Failure to exercise this option shall not constitute a waiver of the right to exercise same in the event of any subsequent Event of Default. Upon an Event of Default, Lender may proceed under any remedy permitted herein, or pursuant to law or equity. No holder hereof shall, by any act of omission or commission, be deemed to waive any of its rights, remedies or powers hereunder unless such waiver is in writing and signed by the holder hereof, and then only to the extent specifically set forth therein. The rights, remedies and powers of the holder hereof, as provided in this Note are cumulative and concurrent and may be pursued singly, successively or together against Borrower and any security given at any time to secure repayment hereof, all at the sole discretion of the holder hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Financial Statements.** Promptly when available, and in any event, within ten (10) days following the end of each calendar month during the term of this Note, Borrower shall deliver to Lender a copy of the unaudited financial statements of Borrower regarding such month then ended, together with such other documentation and information as Lender may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Intentionally Deleted.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.1 This Note, together with the Loan Documents, constitutes the entire agreement among Borrower and Lender and contains all of the agreements with respect to the subject matter hereof, and supersedes any prior understandings, agreements, or representations by or among Borrower and Lender, whether written or oral, to the extent they relate in any way to the subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.2 Lender may at any time assign its rights in this Note. This Note shall inure to the benefit of and may be enforced by Lender and its successor and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.3 No amendment, modification or waiver of any provision of this Note shall be valid unless the same shall be in writing and signed by Borrower and Lender. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.4 The section headings contained in this Note are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.5 This Note is the result of arm's length negotiations conducted by and among Borrower and Lender and, therefore, the usual rules of construction requiring that ambiguities are to be resolved against a particular party shall not be applicable in the construction of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.6 If at any time or times hereafter following an Event of Default Lender employs counsel (whether or not there is a lawsuit) to enforce any rights of Lender against Borrower under this Note or any of the other Loan Documents, or attempts to or enforces any of Lender's rights or remedies under this Note, the costs and expenses incurred by Lender in any manner or way with respect to the foregoing, including, without limitation, attorneys' fees and costs through appeal and in post-judgment proceedings, shall be part of the obligations owing under this Note, payable by Borrower to Lender on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.7 Whenever possible each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note shall be prohibited or invalid under such law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of said documents. As used in this Note, the singular shall include the plural, and masculine, feminine and neuter pronouns shall be fully interchangeable, where the context so requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.8 If this Note is executed by more than one party, the obligations and liabilities of each Borrower hereunder shall be joint and several and shall be binding and enforceable against each Borrower and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.9 BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT BORROWER MAY HAVE TO CLAIM OR RECOVER FROM LENDER IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.10 THE VALIDITY OF THIS NOTE, ITS CONSTRUCTION, INTERPRETATION AND ENFORCEMENT, AND THE RIGHTS OF BORROWER AND LENDER SHALL BE DETERMINED UNDER, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.11 <u>**JURY WAIVER.**</u> LENDER AND BORROWER, EACH HAVING BEEN REPRESENTED BY COUNSEL OR HAVING THE OPPORTUNITY TO BE REPRESENTED BY COUNSEL, EACH KNOWINGLY AND VOLUNTARILY, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS NOTE OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. TO THE MAXIMUM EXTENT PERMITTED BY LAW, BORROWER HEREBY AGREES THAT ANY SUCH ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT LENDER MAY FILE A COPY OF THIS NOTE WITH ANY COURT OR OTHER TRIBUNAL AS WRITTEN EVIDENCE OF THE CONSENT OF BORROWER TO THE WAIYER OF ITS RIGHT TO TRIAL BY JURY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.12 <u>**PRIOR NOTES.**</u> This Note is given in substitution for, and not in payment of, that certain Promissory Note dated July 30, 2021 made by Borrower in the original principal sum of Three Million Seven Hundred Thousand and 00/100 Dollars ($3,700,000.00); that certain Substitute Promissory Note dated October 15, 2021 made by Borrower in the original principal sum of Three Million Five Hundred Thousand and 00/100 Dollars ($3,500,000.00); and that certain Substitute Promissory Note dated December 1, 2021 made by Borrower in the original principal sum of One Million and 00/100 Dollars ($1,000,000.00).

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, Borrower has duly executed this Substitute Promissory Note as of the day and year first written above.

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| GK PREFERRED INCOME II (RIDGMAR) | GK PREFERRED INCOME II (RIDGMAR) |
| SPE, LLC, a Delaware limited liability company | SPE, LLC, a Delaware limited liability company |
| GK Development, Inc., its Manager | GK Development, Inc., its Manager |
| By: | /s/ Garo Kholamian |
|  | Name: Garo Kholamian |
|  | Title: President |

---

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| 1551 KINGSBURY PARTNERS SPE, LLC, a | 1551 KINGSBURY PARTNERS SPE, LLC, a |
| Delaware limited liability company | Delaware limited liability company |
| GK Development, Inc., its Manager | GK Development, Inc., its Manager |
| By: | /s/ Garo Kholamian |
|  | Name: Garo Kholamian |
|  | Title: President |

---

## Ex1Sa-6

**Exhibit 6(n)**

**SUBSTITUTE PROMISSORY NOTE**

---

| | |
|:---|:---|
| $700000.00 | Date: September 1, 2022 |
|  | Maturity Date: December 31, 2023 |

---

FOR VALUE RECEIVED, GK PREFERRED INCOME II (RIDGMAR) SPE, LLC, a Delaware limited liability company <u>("GK Borrower")</u> and 1551 KINGSBURY PAR1NERS SPE, LLC, a Delaware limited liability company <u>("Kingsbury Borrower";</u> and together with GK Borrower, individually or collectively, as the context requires, <u>"Borrower"),</u> jointly and severally, hereby promise to pay to the order of GK INVESTMENT HOLDINGS, LLC, a Delaware limited liability company <u>("Lender")</u> the principal sum of SEVEN HUNDRED THOUSAND AND 00/100 DOLLARS ($700,000.00), with interest thereon, according to the terms of this Substitute Promissory Note (this <u>''Note").</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Interest Rate.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 The unpaid principal balance of this Note shall bear interest from the date of this Note through the Maturity Date at a rate equal to eight percent **(8%)** per annum (the <u>"Interest Rate").</u> Interest shall be calculated on the basis of a 360-day year and the actual number of days elapsed in any portion of a month in which interest is due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 From and after the Maturity Date or upon the occurrence and during the continuance of an Event of Default (as defined below) interest shall accrue on the unpaid principal balance of this Note until paid at a rate equal to five percent (5.00%) per annum in excess of the Interest Rate (the <u>"Default Interest Rate").</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 No clause or provision in this Note shall be construed or shall so operate (a) to raise the Interest Rate set forth in this Note above the lawful maximum, if any, in effect from time to time in the applicable jurisdiction for loans to borrowers of the type, in the amount, for the purposes, and otherwise of the kind contemplated, or (b) to require the payment or the doing of any act contrary to law, but if any clause or provision contained shall otherwise so operate this Note, in whole or in part, then (i) such clauses or provisions shall be deemed modified to the extent necessary to be in compliance with the law, or (ii) to the extent not possible, shall be deemed void as though not contained and the remainder of this Note shall remain operative and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Payments.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Payments under this Note, if not sooner paid or declared to be due in accordance with the terms hereof, shall be made as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Commencing on October 1, 2022 and continuing on the first day of each month thereafter through and including the month in which the Maturity Date occurs, Borrower shall make monthly payments of principal and interest in the amount of $5,501.14 each, which monthly payment shall be calculated based upon a twenty-five (25) year amortization period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The unpaid principal balance of this Note, if not sooner paid or declared to be due in accordance with the terms hereof, together with all accrued and unpaid interest thereon and any other amounts due and payable hereunder, shall be due and payable in full on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Borrower may prepay this Note, in whole or in part, at any time without prepayment penalty or premium. Prepayments shall be allocated among principal, interest and fees at the sole discretion of the Lender unless otherwise agreed or required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Borrower will pay the obligations due under this Note to Lender at 257 East Main Street, Suite 200, Barrington, Illinois 60010, or at such other place as the Lender may designate from time to time in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Borrower agrees that to the extent any payment is received by Lender in connection with this Note, and all or any part of such payment is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid by Lender or paid over to a trustee, receiver or any other entity, whether under any bankruptcy act or otherwise (any such payment is hereinafter referred to as a <u>"Preferential Payment"),</u> then this Note shall continue to be effective or shall be reinstated, as the case may be, and whether or not Lender is in possession of this Note, and, to the extent of such payment or repayment by Lender intended to be satisfied by such Preferential Payment shall be revived and continued in full force and effect as if said Preferential Payment had not been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Borrower hereby acknowledges and agrees that the payment obligations due under this Note are subject to that certain Amended and Restated Intercreditor Agreement dated as of December 1, 2021, as amended from time to time, by and among Lender, GK Investment Property Holdings II, LLC, a Delaware limited liability company and GK Secured Income V, LLC, a Delaware limited liability company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Security.** The payment and performance of all of the obligations represented by this Note are evidenced and/or secured by, among other things, (i) that certain Deed of Trust, Assignment of Leases and Rents and Security Agreement dated as of August 16, 2021 and recorded by the Tarrant County Clerk on August 19, 2021 as Document D221240550, as amended from time to time, granting a first priority lien, mortgage and security interest to the Lender in the real property commonly known as 1888 Green Oaks Road, Fort Worth, Tarrant County, Texas (the <u>"Property");</u> and (ii) such other documents given to evidence or secure payment of this Note (collectively, the <u>"Loan Documents").</u> Reference is hereby made to the Loan Documents, which are incorporated herein by reference, for a statement of the covenants and agreements contained therein, a statement of the rights, remedies and security afforded thereby, and all matters contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Use of Proceeds.** The proceeds of this Note shall be used by Borrower solely for the purpose of effectuating payment a portion of the discounted payoff amounts paid to Borrower's former senior secured lender and mezzanine lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Default.** The occurrence and continuance of any one or more of the following events shall be considered an <u>"Event of Default":</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Borrower fails to pay when due any amount payable under this Note, within five (5) days of the due date for such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 The commencement of any proceeding in bankruptcy by or against Borrower or alleging that Borrower is insolvent or unable to pay its debts as they mature, or for the readjustment of Borrower's debts, whether under the United States Bankruptcy Code or under any other law, whether state or federal, now or hereafter existing, for the relief of debtors, or the commencement of any analogous statutory or non-statutory proceeding involving Borrower; provided, however, that if such commencement of proceedings against Borrower is involuntary, such action shall not constitute an Event of Default unless such appointment is not revoked or such proceeding is not dismissed within sixty (60) days after the commencement of such proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6. **Remedies.** At the election of Lender, and without notice, the principal balance remaining unpaid under this Note and all accrued and unpaid interest thereon and any other amounts due hereunder, shall be and become immediately due and payable in full upon the occurrence of an Event of Default. Failure to exercise this option shall not constitute a waiver of the right to exercise same in the event of any subsequent Event of Default. Upon an Event of Default, Lender may proceed under any remedy permitted herein, or pursuant to law or equity. No holder hereof shall, by any act of omission or commission, be deemed to waive any of its rights, remedies or powers hereunder unless such waiver is in writing and signed by the holder hereof, and then only to the extent specifically set forth therein. The rights, remedies and powers of the holder hereof, as provided in this Note are cumulative and concurrent and may be pursued singly, successively or together against Borrower and any security given at any time to secure repayment hereof, all at the sole discretion of the holder hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Financial Statements.** Promptly when available, and in any event, within ten (10) days following the end of each calendar month during the term of this Note, Borrower shall deliver to Lender a copy of the unaudited financial statements of Borrower regarding such month then ended, together with such other documentation and information as Lender may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Intentionally Deleted.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 This Note, together with the Loan Documents, constitutes the entire agreement among Borrower and Lender and contains all of the agreements with respect to the subject matter hereof, and supersedes any prior understandings, agreements, or representations by or among Borrower and Lender, whether written or oral, to the extent they relate in any way to the subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Lender may at any time assign its rights in this Note. This Note shall inure to the benefit of and may be enforced by Lender and its successor and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 No amendment, modification or waiver of any provision of this Note shall be valid unless the same shall be in writing and signed by Borrower and Lender. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 The section headings contained in this Note are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 This Note is the result of arm's length negotiations conducted by and among Borrower and Lender and, therefore, the usual rules of construction requiring that ambiguities are to be resolved against a particular party shall not be applicable in the construction of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 If at any time or times hereafter following an Event of Default Lender employs counsel (whether or not there is a lawsuit) to enforce any rights of Lender against Borrower under this Note or any of the other Loan Documents, or attempts to or enforces any of Lender's rights or remedies under this Note, the costs and expenses incurred by Lender in any manner or way with respect to the foregoing, including, without limitation, attorneys' fees and costs through appeal and in post-judgment proceedings, shall be part of the obligations owing under this Note, payable by Borrower to Lender on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 Whenever possible each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note shall be prohibited or invalid under such law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of said documents. As used in this Note, the singular shall include the plural, and masculine, feminine and neuter pronouns shall be fully interchangeable, where the context so requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 If this Note is executed by more than one party, the obligations and liabilities of each Borrower hereunder shall be joint and several and shall be binding and enforceable against each Borrower and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT BORROWER MAY HAVE TO CLAIM OR RECOVER FROM LENDER IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 THE VALIDITY OF THIS NOTE, ITS CONSTRUCTION, INTERPRETATION AND ENFORCEMENT, AND THE RIGHTS OF BORROWER AND LENDER SHALL BE DETERMINED UNDER, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11 <u>**JURY WAIVER.**</u> LENDER AND BORROWER, EACH HAVING BEEN REPRESENTED BY COUNSEL OR HAYING THE OPPORTUNITY TO BE REPRESENTED BY COUNSEL, EACH KNOWINGLY AND VOLUNTARILY, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS NOTE OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. TO THE MAXIMUM EXTENT PERMITTED BY LAW, BORROWER HEREBY AGREES THAT ANY SUCH ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT LENDER MAY FILE A COPY OF THIS NOTE WITH ANY COURT OR OTHER TRIBUNAL AS WRITTEN EVIDENCE OF THE CONSENT OF BORROWER TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12 <u>**PRIOR NOTES.**</u> This Note is given in substitution for, and not in payment of, that certain Promissory Note dated July 30, 2021 made by Borrower in the original principal sum of Three Million Seven Hundred Thousand and 00/100 Dollars ($3,700,000.00); that certain Substitute Promissory Note dated October 15, 2021 made by Borrower in the original principal sum of Three Million Five Hundred Thousand and 00/100 Dollars ($3,500,000.00); that certain Substitute Promissory Note dated December 1, 2021 made by Borrower in the original principal sum of One Million and 00/100 Dollars ($1,000,000.00); and that certain Substitute Promissory Note dated January 1, 2022 made by Borrower in the original principal sum of One Million One Hundred Thousand and 00/100 Dollars ($1,100,000.00).

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, Borrower has duly executed this Substitute Promissory Note as of the day and year first written above.

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| GK PREFERRED INCOME II (RIDGMAR) | GK PREFERRED INCOME II (RIDGMAR) |
| SPE, LLC, a Delaware limited liability company | SPE, LLC, a Delaware limited liability company |
| By: | /s/ Garo Kholamian |
|  | Name: Garo Kholamian |
|  | Title: President |

---

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| 1551 KINGSBURY PARTNERS SPE, LLC, a | 1551 KINGSBURY PARTNERS SPE, LLC, a |
| Delaware limited liability company | Delaware limited liability company |
| By: | GK Development, Inc., its Manager |
| By: | /s/ Garo Kholamian |
|  | Name: Garo Kholamian |
|  | Title: President |

---

## Ex1Sa-6

**Exhibit 6(o)**

**SUBSTITUTE PROMISSORY NOTE**

---

| | |
|:---|:---|
| $690849.82 | Date: January 1, 2024 |
|  | Maturity Date: December 31, 2024 |

---

FOR VALUE RECEIVED, GK PREFERRED INCOME II (RIDGMAR) SPE, LLC, a Delaware limited liability company <u>("GK Borrower")</u> and 1551 KINGSBURY PARTNERS SPE, LLC, a Delaware limited liability company <u>("Kingsbury Borrower";</u> and together with GK Borrower, individually or collectively, as the context requires, <u>"Borrower"),</u> jointly and severally, hereby promise to pay to the order of GK INVESTMENT HOLDINGS, LLC, a Delaware limited liability company <u>("Lender")</u> the principal sum of SIX HUNDRED NINETY THOUSAND EIGHT HUNDRED FORTY-NINE AND 82/100 DOLLARS ($690,849.82), with interest thereon, according to the terms of this Substitute Promissory Note (this <u>"Note")</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Interest Rate.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 The unpaid principal balance of this Note shall bear interest from the date of this Note through the Maturity Date at a rate equal to nine and sixth tenths percent (9.60%) per annum (the <u>"Interest Rate").</u> Interest shall be calculated on the basis of a 360-day year and the actual number of days elapsed in any portion of a month in which interest is due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 From and after the Maturity Date or upon the occurrence and during the continuance of an Event of Default (as defined below) interest shall accrue on the unpaid principal balance of this Note until paid at a rate equal to five percent (5.00%) per annum in excess of the Interest Rate (the <u>"Default Interest Rate").</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 No clause or provision in this Note shall be construed or shall so operate (a) to raise the Interest Rate set forth in this Note above the lawful maximum, if any, in effect from time to time in the applicable jurisdiction for loans to borrowers of the type, in the amount, for the purposes, and otherwise of the kind contemplated, or (b) to require the payment or the doing of any act contrary to law, but if any clause or provision contained shall otherwise so operate this Note, in whole or in part, then (i) such clauses or provisions shall be deemed modified to the extent necessary to be in compliance with the law, or (ii) to the extent not possible, shall be deemed void as though not contained and the remainder of this Note shall remain operative and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Payments.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Payments under this Note, if not sooner paid or declared to be due in accordance with the terms hereof, shall be made as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Commencing on February 1, 2024 and continuing on the first day of each month thereafter through and including the month in which the Maturity Date occurs, Borrower shall make monthly payments of principal and interest in the amount of $6,204.06 each, which monthly payment shall be calculated based upon a twenty-five (25) year amortization period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The unpaid principal balance of this Note, if not sooner paid or declared to be due in accordance with the terms hereof, together with all accrued and unpaid interest thereon and any other amounts due and payable hereunder, shall be due and payable in full on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Borrower may prepay this Note, in whole or in part, at any time without prepayment penalty or premium. Prepayments shall be allocated among principal, interest and fees at the sole discretion of the Lender unless otherwise agreed or required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Borrower will pay the obligations due under this Note to Lender at 257 East Main Street, Suite 200, Barrington, Illinois 60010, or at such other place as the Lender may designate from time to time in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Borrower agrees that to the extent any payment is received by Lender in connection with this Note, and all or any part of such payment is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid by Lender or paid over to a trustee, receiver or any other entity, whether under any bankruptcy act or otherwise (any such payment is hereinafter referred to as a <u>"Preferential Payment"),</u> then this Note shall continue to be effective or shall be reinstated, as the case may be, and whether or not Lender is in possession of this Note, and, to the extent of such payment or repayment by Lender intended to be satisfied by such Preferential Payment shall be revived and continued in full force and effect as if said Preferential Payment had not been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Borrower hereby acknowledges and agrees that the payment obligations due under this Note are subject to that certain Amended and Restated Intercreditor Agreement dated as of December 1, 2021, as amended from time to time, by and among Lender, GK Investment Property Holdings II, LLC, a Delaware limited liability company and GK Secured Income V, LLC, a Delaware limited liability company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Security.** The payment and performance of all of the obligations represented by this Note are evidenced and/or secured by, among other things, (i) that certain Deed of Trust, Assignment of Leases and Rents and Security Agreement dated as of August 16, 2021 and recorded by the Tarrant County Clerk on August 19, 2021 as Document D221240550, as amended from time to time, granting a first priority lien, mortgage and security interest to the Lender in the real property commonly known as 1888 Green Oaks Road, Fort Worth, Tarrant County, Texas (the <u>"Property");</u> and (ii) such other documents given to evidence or secure payment of this Note (collectively, the <u>"Loan Documents").</u> Reference is hereby made to the Loan Documents, which are incorporated herein by reference, for a statement of the covenants and agreements contained therein, a statement of the rights, remedies and security afforded thereby, and all matters contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Use of Proceeds.** The proceeds of this Note shall be used by Borrower solely for the purpose of effectuating payment a portion of the discounted payoff amounts paid to Borrower's former senior secured lender and mezzanine lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Default.** The occurrence and continuance of any one or more of the following events shall be considered an <u>"Event of Default":</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Borrower fails to pay when due any amount payable under this Note, within five (5) days of the due date for such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 The commencement of any proceeding in bankruptcy by or against Borrower or alleging that Borrower is insolvent or unable to pay its debts as they mature, or for the readjustment of Borrower's debts, whether under the United States Bankruptcy Code or under any other law, whether state or federal, now or hereafter existing, for the relief of debtors, or the commencement of any analogous statutory or non-statutory proceeding involving Borrower; provided, however, that if such commencement of proceedings against Borrower is involuntary, such action shall not constitute an Event of Default unless such appointment is not revoked or such proceeding is not dismissed within sixty (60) days after the commencement of such proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Remedies.** At the election of Lender, and without notice, the principal balance remaining unpaid under this Note and all accrued and unpaid interest thereon and any other amounts due hereunder, shall be and become immediately due and payable in full upon the occurrence of an Event of Default. Failure to exercise this option shall not constitute a waiver of the right to exercise same in the event of any subsequent Event of Default. Upon an Event of Default, Lender may proceed under any remedy permitted herein, or pursuant to law or equity. No holder hereof shall, by any act of omission or commission, be deemed to waive any of its rights, remedies or powers hereunder unless such waiver is in writing and signed by the holder hereof, and then only to the extent specifically set forth therein. The rights, remedies and powers of the holder hereof, as provided in this Note are cumulative and concurrent and may be pursued singly, successively or together against Borrower and any security given at any time to secure repayment hereof, all at the sole discretion of the holder hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Financial Statements.** Promptly when available, and in any event, within ten (10) days following the end of each calendar month during the term of this Note, Borrower shall deliver to Lender a copy of the unaudited financial statements of Borrower regarding such month then ended, together with such other documentation and information as Lender may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Intentionally Deleted.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 This Note, together with the Loan Documents, constitutes the entire agreement among Borrower and Lender and contains all of the agreements with respect to the subject matter hereof, and supersedes any prior understandings, agreements, or representations by or among Borrower and Lender, whether written or oral, to the extent they relate in any way to the subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Lender may at any time assign its rights in this Note. This Note shall inure to the benefit of and may be enforced by Lender and its successor and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 No amendment, modification or waiver of any provision of this Note shall be valid unless the same shall be in writing and signed by Borrower and Lender. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 The section headings contained in this Note are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 This Note is the result of arm's length negotiations conducted by and among Borrower and Lender and, therefore, the usual rules of construction requiring that ambiguities are to be resolved against a particular party shall not be applicable in the construction of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 If at any time or times hereafter following an Event of Default Lender employs counsel (whether or not there is a lawsuit) to enforce any rights of Lender against Borrower under this Note or any of the other Loan Documents, or attempts to or enforces any of Lender's rights or remedies under this Note, the costs and expenses incurred by Lender in any manner or way with respect to the foregoing, including, without limitation, attorneys' fees and costs through appeal and in post-judgment proceedings, shall be part of the obligations owing under this Note, payable by Borrower to Lender on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 Whenever possible each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note shall be prohibited or invalid under such law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of said documents. As used in this Note, the singular shall include the plural, and masculine, feminine and neuter pronouns shall be fully interchangeable, where the context so requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 If this Note is executed by more than one party, the obligations and liabilities of each Borrower hereunder shall be joint and several and shall be binding and enforceable against each Borrower and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT BORROWER MAY HAVE TO CLAIM OR RECOVER FROM LENDER IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 THE VALIDITY OF THIS NOTE, ITS CONSTRUCTION, INTERPRETATION AND ENFORCEMENT, AND THE RIGHTS OF BORROWER AND LENDER SHALL BE DETERMINED UNDER, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11 <u>**JURY WAIVER.**</u> LENDER AND BORROWER, EACH HAVING BEEN REPRESENTED BY COUNSEL OR HAVING THE OPPORTUNITY TO BE REPRESENTED BY COUNSEL, EACH KNOWINGLY AND VOLUNTARILY, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS NOTE OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. TO THE MAXIMUM EXTENT PERMITTED BY LAW, BORROWER HEREBY AGREES THAT ANY SUCH ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT LENDER MAY FILE A COPY OF THIS NOTE WITH ANY COURT OR OTHER TRIBUNAL AS WRITTEN EVIDENCE OF THE CONSENT OF BORROWER TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12 <u>**PRIOR NOTES.**</u> This Note is given in substitution for, and not in payment of, that certain Promissory Note dated July 30, 2021 made by Borrower in the original principal sum of Three Million Seven Hundred Thousand and 00/100 Dollars ($3,700,000.00); that certain Substitute Promissmy Note dated October 15, 2021 made by Borrower in the original principal sum of Three Million Five Hundred Thousand and 00/100 Dollars ($3,500,000.00); that certain Substitute Promissory Note dated December 1, 2021 made by Borrower in the original principal sum of One Million and 00/100 Dollars ($1,000,000.00); that certain Substitute Promissory Note dated January 1, 2022 made by Borrower in the original principal sum of One Million One Hundred Thousand and 00/100 Dollars ($1,100,000.00); and that certain Substitute Promissory Note dated September 1, 2022 made by Borrower in the original principal sum of Seven Hundred Thousand and 00/100 Dollars ($700,000.00).

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, Borrower has duly executed this Substitute Promissory Note as of the day and year first written above.

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| GK PREFERRED INCOME II (RIDGMAR) | GK PREFERRED INCOME II (RIDGMAR) |
| SPE, LLC, a Delaware limited liability company | SPE, LLC, a Delaware limited liability company |
| GK Preferred Income II, its Manager | GK Preferred Income II, its Manager |
| By: | /s/ Garo Kholamian |
|  | Name: Garo Kholamian |
|  | Title: President |

---

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| 1551 KINGSBURY PARTNERS SPE, LLC, a | 1551 KINGSBURY PARTNERS SPE, LLC, a |
| Delaware limited liability company | Delaware limited liability company |
| By: | /s/ Garo Kholamian |
|  | Name: Garo Kholamian |
|  | Title: President |

---

## Ex1Sa-6

**Exhibit 6(p)**

**PROMISSORY NOTE**

---

| | |
|:---|:---|
| $2285696.89 | Date: December 21, 2021 |
|  | Maturity Date: December 21, 2022 |

---

FOR VALUE RECEIVED, GK CLEARWATER LA FITNESS LLC, an Illinois limited liability company <u>("Maker")</u> hereby promises to pay to the order of GK CLEARWATER RETAIL LLC, an Illinois limited liability company <u>("Holder")</u> the principal sum of TWO MILLION TWO HUNDRED EIGHTY-FIVE THOUSAND SIX HUNDRED NINETY-SIX AND 89/100 DOLLARS ($2,285,696.89), with interest thereon, according to the terms of this Promissory Note (this <u>"Note")</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Interest Rate.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 The unpaid principal balance of this Note shall bear interest from the date of this Note through the Maturity Date at a rate equal to nine percent (9%) per annum (the <u>"Interest Rate").</u> Interest shall be calculated on the basis of a 360-day year and the actual number of days elapsed in any portion of a month in which interest is due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 From and after the Maturity Date, or upon the occurrence and during the continuance of an Event of Default (as defined below), interest shall accrue on the unpaid principal balance of this Note until paid at a rate equal to three percent (3.00%) per annum in excess of the Interest Rate (the <u>"Default Interest Rate").</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 No clause or provision in this Note shall be construed or shall so operate (a) to raise the Interest Rate set fo1ih in this Note above the lawful maximum, if any, in effect from time to time in the applicable jurisdiction for loans to borrowers of the type, in the amount, for the purposes, and otherwise of the kind contemplated, or (b) to require the payment or the doing of any act contrary to law, but if any clause or provision contained shall othe1wise so operate this Note, in whole or in paii, then (i) such clauses or provisions shall be deemed modified to the extent necessary to be in compliance with the law, or (ii) to the extent not possible, shall be deemed void as though not contained and the remainder of this Note shall remain operative and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Payments.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The principal balance of this Note, if not sooner paid or declared to be due in accordance with the terms hereof, together with all accrued and unpaid interest thereon and any other amounts due and payable hereunder, shall be due and payable in full in a single "balloon payment" on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Maker may prepay this Note, in whole or in part, at any time without prepayment penalty or premium. Prepayments shall be allocated among principal, interest and fees at the sole discretion of Holder unless otherwise agreed or required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Maker will pay the obligations due under this Note to Holder at 257 East Main Street, Suite 200, Barrington, Illinois 60010, or at such other place as Holder may designate from time to time in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Maker agrees that to the extent any payment is received by Holder in connection with this Note, and all or any part of such payment is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid by Holder or paid over to a trustee, receiver or any other entity, whether under any bankruptcy act or otherwise (any such payment is hereinafter refe1red to as a <u>"Preferential Payment"),</u> then this Note shall continue to be effective or shall be reinstated, as the case may be, and to the extent of such payment or repayment by Holder intended to be satisfied by such Preferential Payment shall be revived and continued in full force and effect as if said Preferential Payment had not been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Default.** The occurrence and continuance of any one or more of the following events shall be considered an <u>"Event of Default":</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Maker fails to pay when due any amount payable under this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The commencement of any proceeding in bankruptcy by or against Maker or alleging that Maker is insolvent or unable to pay its debts as they mature, or for the readjustment of Maker's debts, whether under the United States Bankruptcy Code or under any other law, whether state or federal, now or hereafter existing, for the relief of debtors, or the commencement of any analogous statutory or non-statutory proceeding involving Maker; provided, however, that if such commencement of proceedings against Maker is involuntaiy, such action shall not constitute an Event of Default unless such appointment is not revoked or such proceeding is not dismissed within sixty (60) days after the commencement of such proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Remedies.** At the election of Holder, and without notice, the principal balance remaining unpaid under this Note and all accrued and unpaid interest thereon and any other amounts due hereunder, shall be and become immediately due and payable in full upon the occurrence of an Event of Default. Failure to exercise this option shall not constitute a waiver of the right to exercise same in the event of any subsequent Event of Default. Upon an Event of Default, Holder may proceed under any remedy pennitted herein, or pursuant to law or equity. No holder hereof shall, by any act of omission or commission, be deemed to waive any of its rights, remedies or powers hereunder unless such waiver is in writing and signed by the holder hereof, and then only to the extent specifically set forth therein. The rights, remedies and powers of the holder hereof, as provided in this Note are cumulative and concurrent and may be pursued singly, successively or together against Maker and any security given at any time to secure repayment hereof, all at the sole discretion of the holder hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 This Note constitutes the entire agreement by and among Maker and Holder and contains all the agreements with respect to the subject matter hereof, and supersedes any prior understandings, agreements, or representations by or among Maker and Holder, whether written or oral, to the extent they relate in any way to the subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Holder may at any time assign its rights in this Note. This Note shall inure to the benefit of and may be enforced by Holder and its successor and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 No amendment, modification or waiver of any provision of this Note shall be valid unless the same shall be in writing and signed by Maker and Holder. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 The section headings contained in this Note are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 This Note is the result of ann's length negotiations conducted by and among Maker and Holder and, therefore, the usual rules of construction requiring that ambiguities are to be resolved against a particular party shall not be applicable in the construction of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 If at any time or times hereafter following an Event of Default, Holder employs counsel (whether or not there is a lawsuit) to enforce any rights of Holder against Maker under this Note, or attempts to or enforces any of Holder's rights or remedies under this Note, the costs and expenses incurred by Holder in any manner or way with respect to the foregoing, including, without limitation, attorneys' fees and costs through appeal and in post-judgment proceedings, shall be part of the obligations owing under this Note, payable by Maker to Holder on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 Whenever possible each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note shall be prohibited or invalid under such law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of said documents. As used in this Note, the singular shall include the plural, and masculine, feminine and neuter pronouns shall be fully interchangeable, where the context so requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 MAKER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT MAKER MAY HAVE TO CLAIM OR RECOVER FROM HOLDER IN ANY LEGAL ACTION OR _PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 THE VALIDITY OF THIS NOTE, ITS CONSTRUCTION, INTERPRETATION AND ENFORCEMENT, AND THE RIGHTS OF MAKER AND HOLDER SHALL BE DETERMINED UNDER, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>**JURY WAIVER.**</u> MAKER AND HOLDER, EACH HAVING BEEN REPRESENTED BY COUNSEL OR HAVING THE OPPORTUNITY TO BE REPRESENTED BY COUNSEL, EACH KNOWINGLY AND VOLUNTARILY, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS NOTE OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. TO THE MAXIMUM EXTENT PERMITTED BY LAW, MAKER HEREBY AGREES THAT ANY SUCH ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT HOLDER MAY FILE A COPY OF THIS NOTE WITH ANY COURT OR OTHER TRIBUNAL AS WRITTEN EVIDENCE OF THE CONSENT OF MAKER TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

[Signature Page Follows]

IN WITNESS WHEREOF, Maker has duly executed this Promissory Note in favor of Holder as of the day and year first written above.

---

| | |
|:---|:---|
| **MAKER:** | **MAKER:** |
| GK CLEARWATER LA FITNESS LLC, an Illinois limited liability company | GK CLEARWATER LA FITNESS LLC, an Illinois limited liability company |
| GK Development, Inc., an Illinois corporation, its Manager | GK Development, Inc., an Illinois corporation, its Manager |
| By: | /s/ Garo Kholamian |
|  | Name: Garo Kholamian |
|  | Title: President |

---

## Ex1Sa-6

**Exhibit 6(q)**

**PROMISSORY NOTE**

---

| | |
|:---|:---|
| $1950000.00 | Date: April 6, 2022 |
|  | Maturity Date: September 30, 2025 |

---

FOR VALUE RECEIVED, LAKE MEAD SELF-STORAGE LLC, a Delaware limited liability company <u>("Borrower"),</u> hereby promises to pay to the order of LAKE MEAD DEVELOPMENT, LLC, a Delaware limited liability company <u>("Lender")</u> the principal sum of ONE MILLION NINE IBJNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($1,950,000.00), with interest thereon, according to the terms of this Promissory Note (this <u>"Note").</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Interest Rate.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 The unpaid principal balance of this Note shall bear interest from the date of this Note through the Maturity Date at a rate equal to eight percent (8.00%) per annum (the <u>"Interest Rate").</u> Interest shall be calculated on the basis of a 360-day year and the actual number of days elapsed in any portion of a month in which interest is due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 From and after the Maturity Date or upon the occurrence and during the continuance of an Event of Default (as defined below) interest shall accrue oli the unpaid principal balance of this Note until paid at a rate equal to five percent (5.00%) per annum in excess of the Interest Rate (the <u>"Default Interest Rate").</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 No clause or provision in this Note shall be construed or shall so operate (a) to raise the Interest Rate set forth in this Note above the lawful maximum, if any, in effect from time to time in the applicable jurisdiction for loans to borrowers of the type, in the amount, for the purposes, and otherwise of the kind contemplated, or (b) to require the payment or the doing of any act contrary to law, but if any clause or provision contained shall otherwise so operate this Note, in whole or in part, then (i) such clauses or provisions shall be deemed modified to the extent necessary to be in compliance with the law, or (ii) to the extent not possible, shall be deemed void as though not contained and the remainder of this Note shall remain operative and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Payments.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The principal balance of this Note, if not sooner paid or declared to be due in accordance with the terms hereof, together with all accrued and unpaid interest thereon and any other amounts due and payable hereunder, shall be due and payable in full in a single "balloon payment" on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Prior to the Maturity Date, Borrower may prepay this Note, in whole or in part, at any time without prepayment penalty or premium. Prepayments shall be allocated among principal, interest and fees at the sole discretion of the Lender unless otherwise agreed or required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Borrower will pay the obligations due under this Note to Lender at 257 East Main Street, Suite 200, Barrington, Illinois 60010, or at such other place as the Lender may designate from time to time in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Borrower agrees that to the extent any payment is received by Lender in connection with this Note, and all or any part of such payment is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid by Lender or paid over to a trustee, receiver or any other entity, whether under any bankruptcy act or otherwise (any such payment is hereinafter referred to as a <u>"Preferential Payment"),</u> then this Note shall continue to be effective or shall be reinstated, as the case may be, and whether or not Lender is in possession of this Note, and, to the extent of such payment or repayment by Lender intended to be satisfied by such Preferential Payment shall be revived and continued in full force and effect as if said Preferential Payment had not been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Default.** The occurrence and continuance of any one or more of the following events shall be considered an <u>"Event of Default":</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Borrower fails to make any payment of principal and/or interest payable to Lender when due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The commencement of any proceeding in bankruptcy by or against Borrower or alleging that Borrower is insolvent or unable to pay its debts as they mature, or for the readjustment of Borrower's debts, whether under the United States Bankruptcy Code or under any other law, whether state or federal, now or hereafter existing, for the relief of debtors, or the commencement of any analogous statutory or non-statutory proceeding involving Borrower; provided, however, that if such commencement of proceedings against Borrower is involuntary, such action shall not constitute an Event of Default unless such appointment is not revoked or such proceeding is not dismissed within sixty (60) days after the commencement of such proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Remedies.** At the election of Lender, and without notice, the principal balance remaining unpaid under this Note and all accrued and unpaid interest thereon and any other amounts due hereunder, shall be and become immediately due and payable in full upon the occurrence of an Event of Default. Failure to exercise this option shall not constitute a waiver of the right to exercise same in the event of any subsequent Event of Default. Upon an Event of Default, Lender may proceed under any remedy permitted herein, or pursuant to law or equity. No holder hereof shall, by any act of omission or commission, be deemed to waive any of its rights, remedies or powers hereunder unless such waiver is in writing and signed by the holder hereof, and then only to the extent specifically set forth therein. The rights, remedies and powers of the holder hereof, as provided in this Note are cumulative and concurrent and may be pursued singly, successively or together against Borrower and any security given at any time to secure repayment hereof, all at the sole discretion of the holder hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 This Note constitutes the entire agreement among Borrower and Lender and contains all of the agreements with respect to the subject matter hereof, and supersedes any prior understandings, agreements, or representations by or among Borrower and Lender, whether written or oral, to the extent they relate in any way to the subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Lender may at any time assign its rights in this Note. This Note shall inure to the benefit of and may be enforced by Lender and its successor and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 No amendment, modification or waiver of any provision of this Note shall be valid unless the same shall be in writing and signed by Borrower and Lender. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 The section headings contained in this Note are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 This Note is the result of arm's length negotiations conducted by and among Borrower and Lender and, therefore, the usual rules of construction requiring that ambiguities are to be resolved against a particular party shall not be applicable in the construction of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 If at any time or times hereafter following an Event of Default Lender employs counsel (whether or not there is a lawsuit) to enforce any rights of Lender against Borrower under this Note or attempts to or enforces any of Lender's rights or remedies under this Note, the costs and expenses incurred by Lender in any manner or way with respect to the foregoing, including, without limitation, attorneys' fees and costs through appeal and in post-judgment proceedings, shall be part of the obligations owing under this Note, payable by Borrower to Lender on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 Whenever possible each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note shall be prohibited or invalid under such law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of said documents. As used in this Note, the singular shall include the plural, and masculine, feminine and neuter pronouns shall be fully interchangeable, where the context so requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 If this Note is executed by more than one party, the obligations and liabilities of each Borrower hereunder shall be joint and several and shall be binding and enforceable against each Borrower and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT BORROWER MAY HAVE TO CLAIM OR RECOVER FROM LENDER IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 THE VALIDITY OF THIS NOTE, ITS CONSTRUCTION, INTERPRETATION AND ENFORCEMENT, AND THE RIGHTS OF BORROWER AND LENDER SHALL BE DETERMINED UNDER, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>**JURY WAIVER.**</u> LENDER AND BORROWER, EACH HAVING BEEN REPRESENTED BY COUNSEL OR HAVING THE OPPORTUNITY TO BE REPRESENTED BY COUNSEL, EACH KNOWINGLY AND VOLUNTARILY, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS NOTE OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. TO THE MAXIMUM EXTENT PERMITTED BY LAW, BORROWER HEREBY AGREES THAT ANY SUCH ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT LENDER MAY FILE A COPY OF THIS NOTE WITH ANY COURT OR OTHER TRIBUNAL AS WRITTEN EVIDENCE OF THE CONSENT OF BORROWER TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, Borrower has duly executed this Note as of the day and year first written above.

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| LAKE MEAD SELF-STORAGE LLC, | LAKE MEAD SELF-STORAGE LLC, |
| a Delaware limited liability company | a Delaware limited liability company |
| By: | GK Development, Inc., |
|  | an Illinois corporation its Manager |
| By: | /s/ Garo Kholamian |
|  | Name: Garo Kholamian |
|  | Title: President |

---

## Ex1Sa-6

**Exhibit 6(r)**

![](tm2616098d1_ex6rimg001.jpg)

**FOURTH AMENDMENT TO LOAN DOCUMENTS**

This Fourth Amendment to Loan Documents (this "***Amendment***") dated as of October 11, 2024, is made by and among GK CLEARWATER LA FITNESS LLC, an Illinois limited liability company ("***Borrower***"), GARO KHOLAMIAN, an individual ("***Guarantor***"), and KEYBANK NATIONAL ASSOCIATION, a national banking association, and its successors, participants, and assigns ("***Lender***").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** Borrower and GK Clearwater Retail LLC, an Illinois limited liability company obtained a loan from Lender (the "***Loan***") pursuant to the terms of an Interim Loan Agreement dated as of July 9, 2019, as amended by a certain Deferment and Amendment Agreement dated as of May 1, 2020, by a certain Second Amendment to Loan Documents dated as of April 29, 2022 and by a certain Third Amendment to Loan Documents dated as of October 16, 2023 (collectively, and together with any further amendments or modifications thereto, the ***"Loan Agreement"***). The Loan is also evidenced by a Promissory Note dated July 9, 2019, in the maximum principal amount of $12,900,000.00 (together with any amendments or modifications thereto, the ***"Note"***). As of October 11, 2024, the outstanding principal balance of the Loan, together with all amounts remaining for disbursement under the Loan, if any, was $5,967,502.89.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Borrower's obligations under the Loan Agreement and the Note are secured by a Mortgage, Assignment of Leases and Rents, Assignment of Contracts, Security Agreement, and Fixture Filing recorded in the Official Records of DuPage County, Illinois, under Document # R2019-056439 (together with any amendments or modifications thereto, the "***Security Instrument***") against the real property legally described therein (the "***Property***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** The Loan Agreement, Note, Security Instrument, and all other documents evidencing, securing, or otherwise governing the Loan, as they may have been amended or modified, are referred to herein collectively as the "***Loan Documents***."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** Borrower's obligations under the Loan Documents are guaranteed by Guarantor pursuant to a Limited Recourse Guaranty dated as of July 9, 2019 (together with any amendments or modifications thereto, the "***Guaranty***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** Borrower has requested that Lender modify the terms of the Loan as set forth below. To accommodate Borrower's request, Borrower and Lender desire to modify the Loan on the terms and conditions set forth in this Amendment.

**AGREEMENTS**

In consideration of the mutual promises, covenants, and conditions set forth herein, the parties hereto hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. TERMINOLOGY.** The terms used in this Amendment shall have the same meanings as in the Loan Agreement, unless a different meaning is assigned herein or is required by the context hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. AMENDMENTS TO LOAN DOCUMENTS.** Upon satisfaction of all of the Conditions of Effectiveness (defined below), the following amendments shall take effect:

*Fourth Amendment to Loan – Clearwater Shopping Center – LA Fitness* *Page* 1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 Extension of Loan Term.** The Maturity Date of the Loan shall be extended to February 6, 2025, unless Lender accelerates the Loan pursuant to an Event of Default, in which case the Loan shall mature on the date of acceleration (the applicable date being referred to as the "***Maturity Date***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 Cash Flow Sweep; Principal Payments***.* Section 2.1 of the Loan Agreement is hereby amended to delete the definition of Net Cash Flow in its entirety and replace it with the following:

***Net Cash Flow:*** For any period, the amount of Gross Revenues from operations of the Project derived from arm's length, market rate rents from Leases with unaffiliated third party Tenants, service fees, and charges (excluding capital gains income derived from the sale of assets and other items of income that Lender reasonably determines are unlikely to occur in any subsequent period) that exceeds: (i) actual costs and expenses, both fixed and variable, of owning, operating, managing, and maintaining the Project incurred by Borrower during the applicable period, provided that costs and expenses shall be determined on a cash basis, however, real estate taxes, insurance expenses, and other expenses not paid in periodic installments shall be adjusted from a cash basis to an accrual basis based on Lender's reasonable estimate of such costs attributable to the applicable period; and (ii) actual debt service on the Loan. For the purpose of calculating actual costs and expenses, all costs and expenses shall be related to the Project and, unless otherwise agreed to by Lender, shall be arm's length transactions with third party providers. If such costs and expenses are not a result of arm's length transactions, as determined by Lender in its reasonable discretion, Lender may adjust the operating costs and expenses for the applicable period to reflect the costs and expenses associated with such item(s) in an arm's length transaction. For the avoidance of doubt, in calculating such Net Cash Flow no portion of the payments made under the Bond Documents shall be included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **CONDITIONS OF EFFECTIVENESS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1** Notwithstanding its execution by all parties, the foregoing amendments shall become effective only upon satisfaction of all of the following "***Conditions of Effectiveness***":

&nbsp;&nbsp;&nbsp;&nbsp;**3.1.1 Modification Fee.** Borrower has paid Lender a modification fee in the amount of $5,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;**3.1.2 Beneficial Ownership Certification**. Borrower shall have delivered to Lender a certification regarding beneficial ownership required by 31 C.F.R. § 1010.230, in such form as Lender may require (the "***Beneficial Ownership Certification***").

&nbsp;&nbsp;&nbsp;&nbsp;**3.1.3 Execution and Recording of Documents.** Borrower and Guarantor, as applicable, have executed any and all documents necessary to effectuate this Amendment or otherwise required by Lender, including any required amendment to the Security Instrument, restated or substituted note, or UCC financing statements, and such documents have been filed or recorded, where necessary.

&nbsp;&nbsp;&nbsp;&nbsp;**3.1.4 No Defaults.** Borrower is in full compliance with all of its covenants and agreements under the Loan Documents, and there is no Default or Event of Default under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;**3.1.5 Resolutions and Organizational Documents**. Borrower has delivered to Lender (i) resolutions of Borrower evidencing approval of the execution and delivery of this Amendment, and (ii) Borrower's organizational documents; provided, however, that Borrower shall be required to deliver only any amendments to the organizational documents of Borrower since the execution and delivery of the Loan Agreement. Borrower represents and warrants that there have been no modifications or amendments to its organizational documents delivered to Lender at the closing of the Loan since such closing.

*Fourth Amendment to Loan – Clearwater Shopping Center – LA Fitness* *Page* 2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2** The Conditions of Effectiveness are intended solely for Lender's benefit and may, at Lender's election and in its sole discretion be enforced, fully or partially waived, or transformed into covenants of Borrower to be performed following effectiveness of the foregoing amendments upon Lender's subsequent written notice and demand. Unless waived in writing by Lender, each of the Conditions of Effectiveness must be satisfied on or before the date hereof or the amendments provided herein shall be of no further force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. LIEN PRIORITY.** The Property shall remain and continue in all respects subject to the Security Instrument and nothing in this Amendment or done pursuant to this Amendment shall affect or be construed to affect Lender's first-lien priority with respect to the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. REPRESENTATIONS AND WARRANTIES.** Borrower and Guarantor hereby acknowledge, represent, warrant, and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1** The Recitals set forth above are true and accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2** Borrower is the fee simple owner of the Property, and Lender has not assumed, and does not hereby assume, control of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **5.3** There is no Default or Event of Default under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4** All necessary steps have been taken to perfect Lender's interest in the Property as security for the Loan, and the Security Instrument is, and shall continue to be, a first and paramount lien against the Property securing Borrower's obligations under the Loan Documents, as amended hereby and by any related documents executed in connection herewith. There are no liens, charges, or encumbrances against the Property that are now or may hereafter become prior to the Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5** All information provided in Borrower's Beneficial Ownership Certification is true, complete, and correct as of the date thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6** All documents and other information requested by Lender from Borrower and Guarantor as a condition to entering into this Amendment are true, complete, and accurate in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.7** The Guaranty is and shall remain fully binding and enforceable in accordance with its terms as to Borrower's obligations under the Loan, as amended hereby. Guarantor's obligations under the Guaranty are and shall continue to be entirely separate and independent from the obligations of Borrower under the Loan Documents. In addition, any separate indemnity agreement executed by Guarantor in connection with the Loan shall remain in full force and effect and shall continue to be separate and independent from any Guaranty and the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.8** Borrower and Guarantor acknowledge that Lender is relying on the warranties, representations, releases, and agreements of Borrower and Guarantor in this Amendment, and would not enter into this Amendment or agree to modify the Loan Documents without such warranties, representations, releases, and agreements.

*Fourth Amendment to Loan – Clearwater Shopping Center – LA Fitness* *Page* 3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. RELEASE**. Borrower and Guarantor agree that Lender has not breached any of its obligations under the Loan Documents, and Borrower and Guarantor have no claims against Lender, its predecessors, successors, assigns, or participants, or any of their officers, directors, agents, employees, and other affiliates (collectively, the ***"Released Parties"***) for fraud, misrepresentation, lender misconduct, lender liability, breach of alleged fiduciary duty, or other tort or wrongdoing. Borrower and Guarantor hereby release and forever discharge the Released Parties of and from any and all claims, causes of action, rights of offset, and rights to damages that Borrower or any Guarantor has or may have, or may be entitled to assert, against the Released Parties for any reason whatsoever by reason of any actions, events, or occurrences prior to the date of this Amendment, except for Borrower's rights to enforce Lender's further obligations under the Loan Documents, as amended hereby. The provisions, waivers, and releases set forth in this section are binding upon Borrower and Guarantor and their respective agents, employees, representatives, officers, directors, partners, members, joint venturers, affiliates, assigns, heirs, successors-in-interest and shareholders. Neither Borrower nor Guarantor have any claims, defenses, counterclaims, or rights of offset against any of the Released Parties arising out of or in any way connected with the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. PAYMENT OF LENDER'S EXPENSES**. In addition to Borrower's payment of the modification fee, Borrower agrees to reimburse Lender for all out-of-pocket expenses incurred by Lender in connection with the drafting, negotiation, execution, delivery, and performance of this Amendment and all related documents, including, without limitation, reasonable attorneys' fees and costs incurred by Lender, premiums for any new title policy or endorsements to Lender's existing Title Policy, appraisal fees, recording charges, escrow fees, and any other costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. EFFECT ON LOAN DOCUMENTS.** This Amendment shall be sufficient to serve as an amendment to all of the Loan Documents, as appropriate. This Amendment supersedes and shall control over any inconsistent provisions of the Loan Documents, or any previous extensions or other amendments of the Loan Documents. Except as amended herein, the Loan Documents shall remain in full force and effect as written, and the provisions of the Loan Documents shall remain unaffected, unchanged, and unimpaired hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. AUTHORIZATION/BINDING EFFECT.** Each person signing this Amendment on behalf of Borrower and Guarantor warrants and represents that this Amendment was duly authorized by all individuals or entities whose authorization was required for this Amendment to be effective. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. APPLICABLE LAW.** This Amendment shall be construed in all respects and enforced according to the laws of the State of Illinois, without regard to that state's choice of law rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. COUNTERPARTS.** The parties may execute this Amendment in any number of counterparts, each of which shall be deemed an original instrument but all of which together shall constitute one and the same instrument.

**[Remainder of page intentionally left blank; signatures appear on the following page(s)]**

*Fourth Amendment to Loan – Clearwater Shopping Center – LA Fitness* *Page* 4

EXECUTED as of the date of this Amendment.

---

| | | | |
|:---|:---|:---|:---|
| **BORROWER:** | **BORROWER:** | **LENDER:** | **LENDER:** |
| GK CLEARWATER LA FITNESS LLC, an Illinois limited liability | GK CLEARWATER LA FITNESS LLC, an Illinois limited liability | KEYBANK NATIONAL ASSOCIATION, a national banking association | KEYBANK NATIONAL ASSOCIATION, a national banking association |
| company. | company. |  |  |
| By: | GK Development, Inc., an Illinois corporation, its Manager |  |  |
|  |  | By: | /s/ Thomas J. Reynolds |
|  |  |  | Thomas J. Reynolds, Senior Vice President |

---

---

| | |
|:---|:---|
| By: | /s/ Garo Kholamian |
|  | Garo Kholamian, President |

---

*Fourth Amendment to Loan – Clearwater Shopping Center – LA Fitness*

EXECUTED as of the date of this Amendment.

---

| | | | |
|:---|:---|:---|:---|
| **BORROWER:** | **BORROWER:** | **LENDER:** | **LENDER:** |
| GK CLEARWATER LA FITNESS LLC, an Illinois limited liability | GK CLEARWATER LA FITNESS LLC, an Illinois limited liability | KEYBANK NATIONAL ASSOCIATION, a national banking association | KEYBANK NATIONAL ASSOCIATION, a national banking association |
| company | company |  |  |
| By: | GK Development, Inc., an Illinois corporation, its Manager |  |  |
|  |  | By: | /s/ Thomas J. Reynolds |
|  |  |  | Thomas J. Reynolds, Senior Vice President |

---

---

| | |
|:---|:---|
| By: | /s/ Garo Kholamian |
|  | Garo Kholamian, President |

---

---

| |
|:---|
| **GUARANTOR;** |
| /s/ Garo Kholamian |
| Garo Kholamian |

---

*Fourth Amendment to Loan – Clearwater Shopping Center – LA Fitness*