v3.26.1
Note 6 - Debt
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 6 — Debt

 

As of June 30, 2026 and December 31, 2025, the principal balances on notes payable are as follows (dollars in thousands):

 

  

Interest

 

Loan

 

Balance as

  

Balance as

 

Loan

 

Rate

 

Maturity

 

of 6/30/26

  

of 12/31/25

 

St Louis Cardinal Lot DST, LLC

  5.25% 

6/6/2027

 $6,000  $6,000 

Mabley Place Garage, LLC (1)

  6.89% 

12/4/2027

  11,651   11,791 

2029 KeyBank Loan Pool (2)

  7.94% 

3/1/2029

  5,732   5,767 

Series 2025-1 Class A-2 Notes (3)

  4.15% 

10/28/2030

  98,400   99,600 

2034 CMBS Loan (4)

  7.76% 

12/6/2034

  66,740   75,149 

Mabley LOC

  (5) 

11/10/2031

  571   — 

Less unamortized loan issuance costs

       (4,684)  (5,424)

Less discount on notes payable

       (9,518)  (11,112)
       $174,892  $181,771 

 

(1)As mentioned below, we entered into an interest rate swap agreement effective  March 2025 on the Mabley Place Garage, LLC loan. The interest rate is SOFR plus a spread of 3.25% and the swap provides for a fixed overall rate of 7.29%.

(2)

2029 KeyBank Loan Pool is secured by MVP Memphis Poplar, LLC and MVP St. Louis, LLC.

(3)In October 2025, we entered into an asset-backed securitization of 19 properties in our portfolio priced at 88.30% of the principal amount of $100 million (the “Series 2025-1 Class A-2 Notes”).
(4)2034 CMBS Loan is secured by 6 properties.
(5)The interest rate on the Mabley LOC, as defined below, is SOFR plus a spread of 2.75%, subject to a 4.0% floor. The interest rate was 6.38% as of June 30, 2026.

 

In February 2026, we entered into a $1.5 million line of credit with WesBanco Bank, Inc. maturing in November 2031 to fund capital improvements at Mabley Place Garage (the “Mabley LOC”). The Mabley LOC is secured by the Mabley Place Garage and is cross-collateralized and cross-defaulted with our existing WesBanco loan.

 

In March 2026, we made a partial principal paydown of $8.1 million on the 2034 CMBS Loan using proceeds from the sale of a parking asset. In connection with the sale, we incurred a charge of $2.0 million associated with the prepayment of the 2034 CMBS Loan, which is recognized as Loss on Extinguishment of Debt on the Consolidated Statement of Operations.

 

As of June 30, 2026, future principal payments on notes payable are as follows (dollars in thousands):

 

2026 (remainder)

 $1,532 

2027

  20,371 

2028

  2,913 

2029

  8,589 

2030

  90,182 

Thereafter

  65,507 

Total

 $189,094 

 

Line of Credit

 

In September 2024, we entered into a $40.4 million revolving credit facility agreement with Harvest Small Cap Partners, L.P. and Harvest Small Cap Partners Master, Ltd. (collectively, the “Lenders”) maturing in September 2025 (the “Line of Credit”). On June 29, 2026, we entered into a fourth amendment to the Line of Credit, which (i) extended the maturity date to September 30, 2026 and (ii) gave the Lenders the option to require cash payment of the prior month's accrued interest within five business days of written demand. Borrowings under the Line of Credit accrue interest at a rate of 15.0% per annum, with interest payable in arrears at maturity, upon repayment of any principal amount borrowed under the Line of Credit, or upon earlier demand by the Lenders pursuant to the fourth amendment to the Line of Credit. After certain amounts paid with the initial proceeds, the Line of Credit may only be used for redemption payments on the Series A Preferred Stock and Series 1 Preferred Stock and funding of the share repurchase program, discussed below. The Line of Credit includes provisions for defaults on recourse indebtedness in an aggregate amount equal to or exceeding $25 million and non-recourse indebtedness in an aggregate amount equal to or exceeding $50 million. Mr. Osher, Co-Chairman of the Board, is the managing member of No Street Capital LLC, which serves as the investment manager of the Lenders.

 

As of June 30, 2026, approximately $22.2 million was outstanding under the Line of Credit. Additionally, there was approximately $5.9 million of accrued interest on the Line of Credit as of June 30, 2026 that is recorded in Accounts Payable and Accrued Expenses on our Consolidated Balance Sheets. 

 

Interest Rate Swap

 

In December 2024, we entered into an interest rate swap agreement to coincide with the refinance of Mabley Place Garage, LLC, which will mature in December 2027. The interest rate swap is valued as a liability, which is immaterial as of June 30, 2026 and $0.2 million as of  December 31, 2025, and is recorded within Accounts Payable and Accrued Expenses on our Consolidated Balance Sheets. The arrangement was for a notional amount of $12.0 million and a fixed overall rate of 7.29% beginning in March 2025. Our use of derivative instruments is limited to this interest rate swap to manage interest rate exposure. The principal objective of this arrangement is to minimize the risks and costs associated with our financial structure, which are in part determined by interest rates. We have elected not to use hedge accounting due to the short-term duration of the arrangement and, as such, will reflect changes in fair value of the arrangement within Other Income (Expense), Net on our Consolidated Statements of Operations.