v3.26.1
Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt

Note 8. Debt

Mortgages Payable, Net

The following table details the mortgages obtained by the Company on the following properties:

 

 

 

 

 

 

Principal Balance Outstanding as of

 

Property

 

Interest Rate

 

Maturity Date

 

June 30, 2026

 

 

December 31, 2025

 

Fixed rate loans:

 

 

 

 

 

 

 

 

 

 

Creekstone

 

5.73%

 

May 1, 2029

 

$

10,350,000

 

 

$

10,350,000

 

Sylva on Main

 

5.08%

 

December 1, 2029

 

 

16,500,000

 

 

 

16,500,000

 

Millside at Heritage Park

 

5.25%

 

February 3, 2030

 

 

7,987,500

 

 

 

7,987,500

 

Northmark Commerce Center

 

6.59%

 

January 1, 2031

 

 

12,250,000

 

 

 

12,250,000

 

Trails at Silverdale

 

3.28%

 

January 5, 2031

 

 

32,615,100

 

 

 

32,615,100

 

Riverway Plaza

 

5.95%

 

July 1, 2031

 

 

12,732,500

 

 

 

12,732,500

 

Independence Square

 

5.96%

 

June 1, 2032

 

 

13,500,000

 

 

 

13,500,000

 

Vineyard Towne Center

 

5.32%

 

June 1, 2032

 

 

34,800,000

 

 

 

—

 

Gold Star

 

5.46%

 

February 26, 2033

 

 

15,500,000

 

 

 

—

 

Chandler Crossroads I

 

5.19%

 

April 1, 2033

 

 

6,660,000

 

 

 

6,660,000

 

Chandler Crossroads II

 

5.19%

 

April 1, 2033

 

 

9,400,000

 

 

 

9,400,000

 

Thurmon Tanner Logistics Center A

 

5.80%

 

September 30, 2033

 

 

31,111,000

 

 

 

31,111,000

 

85 Exchange

 

5.17%

 

May 1, 2036

 

 

18,875,000

 

 

 

—

 

Total fixed rate loans

 

 

 

 

 

 

222,281,100

 

 

 

153,106,100

 

Variable rate loans⁽¹⁾:

 

 

 

 

 

 

 

 

 

 

Copper Point

 

SOFR + 1.63%(2)

 

June 26, 2031

 

 

26,675,000

 

 

 

—

 

Total variable rate loans

 

 

 

 

 

 

26,675,000

 

 

 

—

 

Total mortgages payable

 

 

 

 

 

 

248,956,100

 

 

 

153,106,100

 

Debt mark-to-market, net

 

 

 

 

 

 

(3,929,992

)

 

 

(4,366,335

)

Deferred financing costs, net

 

 

 

 

 

 

(3,081,515

)

 

 

(2,204,684

)

Mortgages payable, net

 

 

 

 

 

$

241,944,593

 

 

$

146,535,081

 
(1)
For variable rate loans, the Company’s average outstanding debt and weighted average interest rate paid for the three and six months ended June 30, 2026, were approximately $8.9 million and 0.29%, respectively, and $4.4 million and 0.15%, respectively. The Company’s weighted average interest rate as of June 30, 2026, was 5.28%.
(2)
Represents a spread over the relevant floating benchmark rates. As of June 30, 2026, the Company had an outstanding interest rate swap to mitigate its exposure to potential future interest rate increases under the floating-rate debt. Total weighted average interest rate does not include the impact of derivatives. For additional details on the Company’s interest rate swaps see “Note 7. Derivative Instruments.”

As of June 30, 2026 and December 31, 2025, the Company was in compliance with all loan covenants related to its mortgage agreements.

Revolving Line of Credit

The following table details the Company’s revolving credit facility:

 

 

 

 

 

 

 

Principal Outstanding Balance as of

 

Interest Rate

 

Maturity Date⁽²⁾

 

Maximum Facility Size⁽³⁾

 

 

June 30, 2026

 

 

December 31, 2025

 

3M Term SOFR + applicable margin⁽¹⁾

 

March 18, 2029

 

$

50,000,000

 

 

$

—

 

 

$

—

 

US 3M + applicable margin⁽⁴⁾

 

January 27, 2026⁽⁵⁾

 

$

50,000,000

 

 

$

—

 

 

$

—

 
(1)
The term 3M Term SOFR refers to the Three-Month forward-looking term Secured Overnight Financing Rate (“SOFR”) in effect two trading days, as defined by the Securities Industry and Financial Markets Association, prior to the commencement of the applicable interest period. The applicable margin is equal to 1.75%.
(2)
Represents the ultimate maturity date of the agreement. Each draw is due within 180 days.
(3)
This revolving credit facility is from a related party lender, as discussed in “Note 12. Related Party Transactions.”
(4)
The term US 3M refers to the Three-Month Treasury Bill rate in effect on the last day of the prior quarter from the applicable Borrowing Date, and resets quarterly. The applicable margin is equal to 1.75%. The interest rate was 5.77% as of December 31, 2025.
(5)
The Company’s revolving line of credit agreement with FMR LLC, which matured on January 27, 2026, was extended under the existing terms until it was amended effective March 18, 2026.

For additional details on the Company’s revolving credit facility see “Note 12. Related Party Transactions.”

The following table presents the future principal payments due in each of the next five years and thereafter under the Company’s outstanding borrowings as of June 30, 2026:

Years

 

Revolving Line of Credit

 

 

Mortgages Payable

 

 

Total

 

2026 (remaining)

 

$

—

 

 

$

—

 

 

$

—

 

2027

 

 

—

 

 

 

—

 

 

 

—

 

2028

 

 

—

 

 

 

—

 

 

 

—

 

2029

 

 

—

 

 

 

26,850,000

 

 

 

26,850,000

 

2030

 

 

—

 

 

 

7,987,500

 

 

 

7,987,500

 

2031

 

 

—

 

 

 

84,272,600

 

 

 

84,272,600

 

Thereafter

 

 

—

 

 

 

129,846,000

 

 

 

129,846,000

 

Total

 

$

—

 

 

$

248,956,100

 

 

$

248,956,100