Analyst Summary
- Presidio Property Trust, Inc. defaulted on an $11.1 million loan secured by the Dakota Center in Fargo, North Dakota.
- The default was triggered by the loan’s maturity date.
- The company is working with the lender to sell the property and settle the non-recourse debt.
- As a result of the default, the company is required to pay a default interest rate that is 5% above the original interest rate and the lender’s expenses.
Potential Implications
Company Performance
- Increased expenses due to default interest and lender fees.
- Potential impact on financial results due to the need to sell the Dakota Center property.
- Possible strain on relationships with lenders.
Stock Price
- Potential negative impact on stock price due to the loan default and associated financial strain.
- Uncertainty surrounding the sale of the Dakota Center property could create volatility.