| Schedule of mortgages payable |
| Schedule of mortgages payable | |
| |
| |
| | | |
| | |
| | |
Interest
Rate | |
Final
Payment
Date | |
July 31,
2026 |
| |
July 31,
2025 |
|
| Fishkill, NY building (1) | |
3.98% | |
4/1/2040 | |
$ | — | | |
$ | 3,235,561 | |
| Circleville, OH building (2) | |
7.00% | |
4/1/2031 | |
| 6,164,086 | | |
| — | |
| Fishkill, NY building (3) | |
See (3) below | |
5/1/2036 | |
| 3,586,549 | | |
| — | |
| Deferred financing costs | |
| |
| |
| (265,204 | ) | |
| — | |
| | |
| |
| |
$ | 9,485,431 | | |
$ | 3,235,561 | |
| (1) | In March 2020, the Company obtained a loan with Putnam County National Bank in the amount of $4,000,000 with a fixed rate of 3.98%, secured by the Fishkill,
New York land and building. This remaining loan balance of $3,126,576 was paid off effective March 27, 2026 from proceeds of the $6,200,000
loan from the same bank described in (2) below. |
| (2) | In March 2026, the Company obtained a loan with Putnam County National Bank in the amount of $6,200,000 with monthly payments of $48,069
starting from May 1, 2026, amortized over a 20-year period with an interest rate of 7.00%. Effective any time after April 1, 2031 through
April 1, 2046, the bank may demand a balloon payment for the full amount outstanding. The Company is permitted to prepay any outstanding
indebtedness; however, any prepayments of indebtedness are subject to a penalty fee equal to (i) 3.0% of the outstanding principal amount
in the first year of the loan, (ii) 2.0% of the outstanding principal amount in the second year of the loan and (iii) 1.0% of the outstanding
principal amount of the third year of the loan. The loan is secured by the Company’s Circleville, Ohio property. The Company used
$3,126,576 of the net proceeds from the loan to repay an existing secured loan with the same bank. The Company intends to use the remaining
net proceeds for maintenance, repairs and onboarding of new tenants on various properties.
|
| (3) | On May 12, 2026, the Company entered into a non-revolving line of credit agreement with Beacon Bank & Trust, a Massachusetts Trust Company (the “Lender”) wherein the Company has obtained a loan secured by a first lien mortgage on the Fishkill Property. The Company borrowed a principal amount of $8,000,000, or such lesser sum as shall have been advanced pursuant to a Mortgage Note between the Company and Lender, plus interest, in the amounts and in the manner as described below.
From May 12, 2026 through May 11, 2027 (the “Advance Period”), the Company shall pay interest on the outstanding principal
balance from the date of advance until the principal is paid in full, at a floating interest rate equal to (i) the WSJ Prime Rate established
by the Lender, as the same may be adjusted from time to time (the “Index”) plus (ii) 100 basis points per annum (the “Applicable
Interest Rate”), subject at all times to a “Minimum Interest Rate” of 7.25% per annum. The variable interest rate in
effect as of July 31, 2026 was 7.75%.
Commencing on June 01, 2027 and terminating on May 1, 2036 (the “Maturity Date”), the Company shall pay principal and interest
on the outstanding principal advanced, amortized over 25 years until the principal is paid in full, at the interest rate determined based
upon an “Index.” The Index is determined by the weekly average yield on Federal Home Loan Bank of Boston Fixed Rate Advance
Rate index adjusted to a constant maturity of 5five years. Before each Change Date, the Lender will determine the interest rate chargeable
as of such Change Date by adding 225 basis points to the Current Index (as defined in the Mortgage Note), subject at all times to a minimum
interest rate of 6.00%. The Company is required to maintain its business operating account and tenant security accounts with the Lender
with minimum required balances in the amount of $1,000,000 while the Loan remains outstanding. |
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