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Subsequent Events
6 Months Ended
Jun. 30, 2025
Subsequent Events [Abstract]  
Subsequent Events

Note 11 – Subsequent Events

 

On July 9, 2025, Generation Income Properties, L.P. (the "Seller") entered into a Purchase and Sale Agreement with 919 Investments LLC (the "Buyer") for the sale of a property located at 3134 West 76th Street, Chicago, Illinois (the "Property"). The agreed purchase price for the Property is $3,100,000, with an initial deposit of $50,000 paid by the Buyer to the escrow agent. The transaction is subject to various due diligence and closing conditions, including the examination of title, inspections, and environmental assessments.

 

The closing of the transaction is scheduled to occur on or before August 29, 2025, subject to the completion of Buyer’s due diligence within the Inspection Period and the satisfaction of the specified closing conditions.

 

The property is recorded to held for sale assets at sales price of $3,100,000.

 

As mentioned above, On August 7, 2025, the Company exercised its first 12-month extension option under the GIP SPE Operating Agreement, extending the Mandatory Redemption Date from August 10, 2025 to August 10, 2026. In connection with the extension, the Company paid LC2 an extension fee of $141,000 (equal to 100 basis points of the outstanding LC2 Investment), increased the Preferred Equity Return from 15.5% to 18% per annum, and increased the Accrued Preferred Return from 10.5% to 13% per annum, while the Current Preferred Return remained at 5% per annum. The Company also confirmed that the trailing six-month annualized adjusted net operating income exceeded $5.0 million, the senior loans had been extended through the end of the extension period, and there were no material breaches or defaults under the GIP SPE Operating Agreement.