Presidio Property Trust Inc
For the period ended Dec 31, 2023. Filed Apr 16, 2024.
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FY2023 · Filed Apr 16, 2024
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Item 2. PROPERTIES
General Information
We invest in a diverse multi-tenant portfolio of real estate assets primarily consisting of office/industrial, retail, and model home properties located primarily in the western United States. As of December 31, 2023, we owned or had an equity interest in nine office/industrial buildings totaling approximately 758,175 rentable square feet and three retail centers totaling approximately 65,242 rentable square feet. In addition, through our Model Home subsidiary and our investments in six limited partnerships and one corporation, we own a total of 110 Model Home properties located in five states. We directly manage the operations and leasing of our properties. Substantially all of our revenues consist of base rents received under leases that generally have terms that range from one to five years. The majority of our existing leases as of December 31, 2023 contain contractual rent increases that provide for increases in the base rental payments. Our tenants consist of local, regional and national businesses. Our properties generally attract a mix of diversified tenants creating lower risk in periods of economic fluctuations. Our largest tenant represented approximately 6.43% of total revenues for the year ended December 31, 2023.
Geographic Diversification Table
The following table shows a list of properties we owned as of December 31, 2023, grouped by the state where each of our investments is located.
Office/Industrial and Retail Properties:
| State | No. of Properties | Aggregate Square Feet | Approximate % of Square Feet | Current Base Annual Rent | Approximate % of Aggregate Annual Rent |
|---|---|---|---|---|---|
| California | 1 | 57,807 | 7.0% | $1,425,269 | 12.9% |
| Colorado | 5 | 324,245 | 39.4% | 4,883,335 | 44.2% |
| Maryland | 1 | 31,752 | 3.9% | 710,248 | 6.4% |
| North Dakota (1) | 4 | 399,113 | 48.4% | 3,687,043 | 33.5% |
| Texas | 1 | 10,500 | 1.3% | 335,973 | 3.0% |
| Total | 12 | 823,417 | 100.0% | $11,041,868 | 100.0% |
| (1) | In December 2023, JLK Engineering moved into a North Dakota property under a 10-year lease, with rent commencing on February 28, 2024. |
Model Home Properties:
| Geographic Region | No. of Properties | Aggregate Square Feet | Approximate % of Square Feet | Current Base Annual Rent | Approximate % of Aggregate Annual Rent |
|---|---|---|---|---|---|
| Midwest | 4 | 12,307 | 3.7% | $182,748 | 4.3% |
| Southeast | 4 | 9,875 | 2.9% | 172,428 | 4.0% |
| Southwest | 102 | 312,174 | 93.4% | 3,926,124 | 91.7% |
| Total | 110 | 334,356 | 100.0% | $4,281,300 | 100.0% |
The following table summarizes information relating to our properties (excluding model homes) at December 31, 2023:
Property Summary
| ($ in000's) Property Location · Sq., Ft. · Date Acquired · Year Property Constructed · Purchase Price (1) · Occupancy · Percent Ownership · Mortgage On property | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Office/Industrial Properties: | ||||||||||||
| Genesis Plaza, San Diego, CA (2) | 57,807 | 08/10 | 1989 | $10,000 | 100.0% | 76.4% | $5,937 | |||||
| Dakota Center, Fargo, ND | 119,554 | 05/11 | 1982 | 9,575 | 58.1% | 100.0% | 9,197 | |||||
| Grand Pacific Center, Bismarck, ND (3) | 94,943 | 03/14 | 1976 | 5,350 | 89.7% | 100.0% | 5,471 | |||||
| Arapahoe Center, Colorado Springs, CO | 79,023 | 12/14 | 2000 | 11,850 | 88.0% | 100.0% | 7,426 | |||||
| West Fargo Industrial, West Fargo, ND | 150,099 | 08/15 | 1998/2005 | 7,900 | 96.0% | 100.0% | 3,923 | |||||
| 300 N.P., West Fargo, ND | 34,517 | 08/15 | 1922 | 3,850 | 66.4% | 100.0% | - | |||||
| One Park Centre, Westminster CO | 69,174 | 08/15 | 1983 | 9,150 | 75.0% | 100.0% | 6,044 | |||||
| Shea Center II, Highlands Ranch, CO | 121,306 | 12/15 | 2000 | 25,325 | 67.1% | 100.0% | 16,951 | |||||
| Baltimore, Baltimore, MD | 31,752 | 12/21 | 2006 | 8,892 | 100.0% | 100.0% | 5,670 | |||||
| Total Office/Industrial Properties | 758,175 | $91,892 | 81.0% | $60,619 | ||||||||
| Retail Properties: | ||||||||||||
| Union Town Center, Colorado Springs, CO | 44,042 | 12/14 | 2003 | 11,212 | 79.5% | 100.0% | 7,870 | |||||
| Research Parkway, Colorado Springs, CO | 10,700 | 08/15 | 2003 | 2,850 | 100.0% | 100.0% | 1,589 | |||||
| Mandolin, Houston, TX (4) | 10,500 | 08/21 | 2021 | 4,892 | 100.0% | 61.3% | 3,573 | |||||
| Total Retail Properties | 65,242 | $18,954 | 86.2% | $13,032 | ||||||||
| (1) | Prior to January 1, 2009, “Purchase Price” includes our acquisition related costs and expenses for the purchase of the property. After January 1, 2009, acquisition related costs and expenses were expensed when incurred. |
| (2) | Genesis Plaza is owned by two tenants-in-common, each of which own 57% and 43%, respectively, and we beneficially own an aggregate of 76.4%, based on our ownership percentages of each tenant-in-common. |
| (3) | Grand Pacific Center, Bismarck, ND, was removed from held for sale after signing a major lease with KLJ Engineering on December 7, 2022 for approximately 33,296 usable square feet, a term of 122 months, and starting annualized rent of $532,736. KLJ Engineering moved into the building during December 2023, with rent commencing on February 28, 2024. |
| (4) | Mandolin is owned by NetREIT Palm Self-Storage LP, through its wholly owned subsidiary NetREIT Highland LLC, and the Company is the sole general partner and owns 61.3% of NetREIT Palm Self-Storage LP. |
Top Ten Tenants Physical Occupancy Table
The following table sets forth certain information with respect to our top 10 tenants at our Office/Industrial and Retail Properties.
| As of March, 2023 Tenant · Number of Leases · Annualized Base Rent · % of Total Annualized Base Rent | ||||
|---|---|---|---|---|
| John Hopkins University | 1 | 710,248 | 6.43% | |
| KLJ Engineering LLC | (1) | 1 | 536,080 | 4.85% |
| Finastra USA Corporation | 1 | 525,480 | 4.76% | |
| MasTec North America, Inc. | 1 | 362,182 | 3.28% | |
| L&T Care LLC | 1 | 335,973 | 3.04% | |
| Wells Fargo Bank, NA | 1 | 293,742 | 2.66% | |
| Republic Indemnity of America | 1 | 270,710 | 2.45% | |
| Nova Financial & Investment Corporation | 1 | 269,155 | 2.44% | |
| Meissner Jacquet Real Estate Management Group, Inc. | 1 | 255,177 | 2.31% | |
| Fredrikson & Byron P.A. | 1 | 249,270 | 2.26% | |
| $3,808,017 | 34.48% | |||
| (1) | Grand Pacific Center, Bismarck, ND, signed a major lease with KLJ Engineering on December 7, 2022 for approximately 33,296 usable square feet, a term of 122 months, and starting annualized rent of $532,736. KLJ Engineering moved into the building during December 2023, with rent commencing on February 28, 2024. |
Lease Expirations Tables
The following table sets forth lease expirations for our properties as of December 31, 2023, assuming that none of the tenants exercise their renewal options.
Office/Industrial and Retail Properties:
| Expiration Year · Number of Leases Expiring · Square Footage · Annual Rental From Lease · Percent of Total | |||||
|---|---|---|---|---|---|
| 2023 | (1) | 20 | 23,297 | $254,966 | 2.3% |
| 2024 | 27 | 61,354 | 1,021,491 | 9.3% | |
| 2025 | 29 | 141,493 | 2,384,600 | 21.6% | |
| 2026 | 34 | 207,887 | 3,179,628 | 28.8% | |
| 2027 | 13 | 48,840 | 924,512 | 8.4% | |
| 2028 | 18 | 73,658 | 1,481,512 | 13.4% | |
| Thereafter | 14 | 101,459 | 1,795,159 | 16.2% | |
| Totals | 155 | 657,988 | $11,041,868 | 100.0% | |
| (1) | One lease at our Dakota Center property in Fargo, ND expired on December 31, 2023 and was not renewed. This tenant made up less than 2% of our total portfolio rent, but accounted for approximately 20% of our Dakota Center rent. Management is looking into various options to replace the loss of this tenant. |
Model Home Properties:
| Expiration Year (1) | Number of Leases Expiring | Square Footage | Annual Rental From Lease | Percent of Total |
|---|---|---|---|---|
| 2024 | 71 | 214,566 | 2,396,376 | 56.0% |
| 2025 | 39 | 119,790 | 1,884,924 | 44.0% |
| 110 | 334,356 | $4,281,300 | 100.0% |
| (1) | These leases are subject to extensions by the home builder depending on sales of the total development. All model homes are sold at the end of the lease period. |
Physical Occupancy Table for Last 5 Years
The following table presents the percentage occupancy for each of our properties, excluding our Model Home Properties, as of December 31st for each of the last five years.
| Date · Percentage Occupancy as of the Year Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| Acquired | 2019 | 2020 | 2021 | 2022 | 2023 | |
| Office/ Industrial Properties: | ||||||
| Garden Gateway Plaza (1) | 03/07 | 76.4% | 76.4% | N/A | N/A | N/A |
| Executive Office Park (1) | 07/08 | 100.0% | 97.7% | N/A | N/A | N/A |
| Genesis Plaza | 08/10 | 78.5% | 74.7% | 85.6% | 96.2% | 100.0% |
| Dakota Center | 05/11 | 86.0% | 86.0% | 73.5% | 71.8% | 58.1% |
| Grand Pacific Center | 03/14 | 71.8% | 74.2% | 56.6% | 56.4% | 89.7% |
| Arapahoe Center | 12/14 | 100.0% | 100.0% | 100.0% | 100.0% | 88.0% |
| West Fargo Industrial | 08/15 | 77.1% | 82.0% | 90.8% | 94.3% | 100.0% |
| 300 N.P. | 08/15 | 73.0% | 72.8% | 64.8% | 75.5% | 66.4% |
| Highland Court (1)(2) | 08/15 | 70.1% | 64.5% | N/A | N/A | N/A |
| One Park Centre | 08/15 | 79.1% | 84.8% | 80.5% | 84.9% | 75.0% |
| Shea Center II | 12/15 | 90.9% | 91.2% | 91.6% | 95.4% | 67.1% |
| Baltimore | 12/21 | N/A | N/A | 100.0% | 100.0% | 100.0% |
| Retail Properties: | ||||||
| World Plaza (1) | 09/07 | 100.0% | 100.0% | 100.0% | N/A | N/A |
| Waterman Plaza (1) | 08/08 | 90.7% | 85.9% | N/A | N/A | N/A |
| Union Town Center | 12/14 | 100.0% | 100.0% | 87.4% | 72.9% | 79.5% |
| Research Parkway | 08/15 | 100.0% | 100.0% | 100.0% | 88.8% | 100.0% |
| Mandolin (2) | 08/21 | N/A | N/A | 100.0% | 100.0% | 100.0% |
| (1) | Property was sold prior in previous periods. |
| (2) | A portion of the proceeds from the sale of Highland Court were used in like-kind exchange transactions pursued under Section 1031 of the Code for the acquisition of our Mandolin property. Mandolin is owned by NetREIT Palm Self-Storage LP, through its wholly owned subsidiary NetREIT Highland LLC, and the Company is the sole general partner and owns 61.3% of NetREIT Palm Self-Storage LP. |
Annualized Base Rent Per Square Foot for Last 5 Years
The following table presents the average effective annual rent per square foot for each of our properties, excluding our Model Home Properties, as of December 31, 2023.
| Annualized Base Rent per Square Foot (1) For the Years Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | Annualized Base Rent (2) | Net Rentable Square Feet | |
| Office/ Industrial Properties: | |||||||
| Garden Gateway Plaza (3) | $12.62 | $13.45 | N/A | N/A | N/A | N/A | 115,052 |
| Executive Office Park (3) | $13.29 | $13.65 | N/A | N/A | N/A | N/A | 49,864 |
| Genesis Plaza (4) | $28.15 | $22.97 | $25.71 | $26.26 | $29.34 | $1,425,269 | 57,807 |
| Dakota Center | $12.87 | $13.24 | $13.22 | $14.09 | $15.45 | $1,073,530 | 119,554 |
| Grand Pacific Center (5) | $13.97 | $13.71 | $13.79 | $13.90 | $14.57 | $1,240,771 | 94,943 |
| Arapahoe Center | $14.69 | $15.18 | $11.87 | $13.75 | $14.43 | $1,003,734 | 79,023 |
| West Fargo Industrial | $6.65 | $6.77 | $6.81 | $6.80 | $7.09 | $1,021,825 | 150,099 |
| 300 N.P. | $13.67 | $14.86 | $14.89 | $16.72 | $15.32 | $350,917 | 34,517 |
| Highland Court (3)(6) | $19.33 | $22.33 | N/A | N/A | N/A | N/A | 93,536 |
| One Park Centre | $19.51 | $21.85 | $23.42 | $20.35 | $23.81 | $1,234,697 | 69,174 |
| Shea Center II (4) | $18.47 | $19.24 | $20.37 | $19.40 | $19.17 | $1,502,576 | 121,306 |
| Baltimore | N/A | N/A | 21.50 | $21.93 | $22.37 | $710,248 | 31,752 |
| Retail Properties: | |||||||
| World Plaza (3) | $13.63 | $9.93 | $14.28 | N/A | N/A | N/A | 55,810 |
| Waterman Plaza (3) | $16.30 | $12.42 | N/A | N/A | N/A | N/A | 21,170 |
| Union Town Center | $25.63 | $23.73 | $23.86 | $25.22 | $24.65 | $888,278 | 44,042 |
| Research Parkway | $22.58 | $29.09 | $22.69 | $23.53 | $23.74 | $254,050 | 10,700 |
| Mandolin (6) | N/A | N/A | 30.75 | $31.37 | $32.00 | $335,973 | 10,500 |
| (1) | Annualized Base Rent (defined as cash rent including abatements) divided by the percentage occupied divided by rentable square feet. |
| (2) | Annualized Base Rent is based upon actual rents due as of December 31, 2023. |
| (3) | Property was sold during prior periods. |
| (4) | Annualized base rent at Genesis Plaza and Shea Center II does not include space rent by the Company, which totals 9,224 square feet at Genesis Plaza and 2,972 square feet at Shea Center II. |
| (5) | Grand Pacific Center, Bismarck, ND, signed a major lease with KLJ Engineering on December 7, 2022 for approximately 33,296 usable square feet, a term of 122 months, and starting annualized rent of $532,736. KLJ Engineering moved into the building during December 2023, with rent commencing on February 28, 2024. |
| (6) | A portion of the proceeds from the sale of Highland Court were used in like-kind exchange transactions pursued under Section 1031 of the Code for the acquisition of our Mandolin property. Mandolin is owned by NetREIT Palm Self-Storage LP, through its wholly owned subsidiary NetREIT Highland LLC, and the Company is the sole general partner and owns 61.3% of NetREIT Palm Self-Storage LP. |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.