Presidio Property Trust Subsidiary Defaults on $17.7M Loan, Faces Foreclosure and Loss of Rental Income

summarizeSummary

Presidio Property Trust's subsidiary defaulted on a $17.7 million loan, resulting in a default notice, increased interest, potential foreclosure of a key property, and loss of rental income.

check_boxKey Events

• Default Notice Received

  On January 21, 2026, Presidio Property Trust, Inc. and its subsidiary, NetREIT SC II, LLC, received a default notice from Wells Fargo Bank, National Association.

• Loan Default Details

  The default stems from the subsidiary's failure to repay in full by January 5, 2026, a promissory note with an original principal amount of $17,727,500.00.

• Accelerated Financial Obligations

  As a result of the default, the entire unpaid amount will now bear interest at a default rate of 5% above the original 4.92% per annum.

• Foreclosure Risk and Asset Loss

  The lender now has the right to foreclose on the real and personal property pledged as security for the note, known as 'Shea Center II' in Douglas County, Colorado.

auto_awesomeAnalysis

Presidio Property Trust's subsidiary, NetREIT SC II, LLC, has defaulted on a $17.7 million promissory note, leading to a default notice from Wells Fargo Bank. This is a critical event as the loan amount significantly exceeds the company's market capitalization, indicating severe financial distress. The default triggers a higher interest rate and grants the lender the right to foreclose on the pledged property, 'Shea Center II'. Furthermore, the lender has revoked the subsidiary's license to collect rents from this property, which will directly impact the company's cash flow and operational viability. The company is exploring options to cure the default, but the immediate implications are highly negative and pose a significant threat to the company's going concern.