Focus Universal (NASDAQ: FCUV) buys $17.7M office with $11.05M loan
Rhea-AI Filing Summary
Focus Universal Inc., through subsidiary Lusher Holding LLC, closed the acquisition of a Class A office and commercial property in Monterey Park, California for $17,700,000. The purchase was funded with an $11,050,000 term loan from East West Bank and $5,797,151.82 in cash at closing after an earlier $525,000 deposit.
The property spans about 10.73 acres with roughly 100,743 square feet of rentable space and is 99.2% occupied by approximately 16 tenants, most under 5–8 year leases. The Los Angeles County Assessor valued the land and improvements at about $28,424,982 in 2026.
The East West Bank loan carries a 6.25% interest rate for the first three years, then floats at the Wall Street Journal Prime Rate plus 0.25%, with monthly principal and interest payments and a final balloon payment due in 2036. Focus Universal guarantees the loan, with its Chief Executive Officer as secondary guarantor.
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Insights
Focus Universal adds a largely leased office asset using long-term bank debt.
Focus Universal purchased a Monterey Park Class A office complex for $17.7M, supported by an assessor value of about $28.4M. The property is about 99.2% occupied by roughly 16 tenants on mainly 5–8 year leases, which can provide relatively stable rental income.
The acquisition is financed with an $11.05M East West Bank term loan at an initial 6.25% interest rate, then floating at the Wall Street Journal Prime Rate plus 0.25%. The structure includes 83 monthly payments starting May 1, 2026 and a balloon payment of about $9.53M due in April 2036, concentrating refinancing and repayment needs at maturity.
The company is the primary guarantor and its CEO is a secondary guarantor, linking corporate and personal credit support to this asset. Future company filings may clarify how rental revenues, operating costs, and interest expense from this property affect overall profitability and leverage.
8-K Event Classification
Key Figures
Key Terms
Class A office financial
term loan agreement financial
Wall Street Journal Prime Rate plus 0.25% financial
parking ratio financial
Los Angeles County Assessor financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
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| Item 1.01 | Entry into a Material Definitive Agreement. |
The information set forth in Item 2.01 and Item 2.03 of this Current Report on Form 8-K is incorporated into this Item 1.01 by reference to the extent applicable.
| Item 2.01 | Completion of Acquisition or Disposition of Assets. |
On April 17, 2026, Focus Universal Inc. (the “Company”), through a wholly owned subsidiary, Lusher Holding LLC (the “Lusher Holding”), closed the acquisition of Class A office and commercial building along with a four-level parking structure, located at 901 Corporate Center Drive, Monterey Park, California 91754 (the “Property”). The Seller of the Property was 901 Corporate Center, LP (the “Seller”). The Seller does not have a material relationship with the Company, and the acquisition was not an affiliated transaction.
The aggregate purchase price of the Property was $17,700,000, exclusive of closing costs (the “Purchase Price”). The Company made an initial down payment of $525,000 on January 26, 2026. On April 17, 2026, the Company funded the Purchase Price with a loan of $11,050,000 facilitated by a term loan agreement with East West Bank and $5,797,151.82 in cash as a downpayment to close escrow. The Purchase Price was discounted approximately $419,152.91 due to rent prorations, security deposits, and other such pre-paid amounts which resulted in the Company receiving a balance of $2,334 after closing costs. The surveyed aggregate land area of the Property amounts to approximately 464,955 useable square feet or 10.73 acres, which is comprised of four parcels (i.e., Parcel Numbers, 5237-022-014, 046, 047, and 5237-002-021) (the “Parcels”). The Parcels, including its land and improvements, have an aggregate value of approximately $28,424,982 in 2026 according to the Los Angeles County Assessor.
The Property provides approximately 100,743 sq. ft. in rentable Class A office space and has a parking ratio of 4.1/1,000, offering a blend of surface parking and adjacent four-level parking structure with a canopy of solar panels that are currently leased. Currently, the Property is 99.2% occupied by approximately 16 tenants. The Company does not intend to alter the terms of lease agreements in place with the current tenants, most of which have a term of 5 to 8 years. The Company plans to occupy approximately 2,000 square feet of space. The Company has retained Lee & Associates to manage the property while the previous management Jamison Services will remain for 30 days to facilitate the transition.
| Item 2.03 | Creation of Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
Lusher Holding entered into a loan with East West Bank to borrow $11,050,000, at 6.25% interest for the first 3 years, then floating at the Wall Street Journal Prime Rate plus (+) 0.25% for the remaining term, with a floor interest rate at 6.25% to facilitate the purchase of the Property (“East West Loan”).
The East West Loan provides for 83 consecutive monthly principal and interest payments of approximately $68,698.64, beginning on May 1, 2026, and subsequently, 83 consequent instalments of principal and interest payments of an estimated amount of approximately $73,917.99 (subject to change based on Wall Street Journal Prime Rate plus 0.25%) each beginning May 1, 2029. A final principal and interest payment of approximately $9,533,143.67 is due on April 1, 2036 (subject to change based on Wall Street Journal Prime Rate plus 0.25%).
The Company is listed as the primary guarantor of the East West Loan and our Chief Executive Officer, Dr. Desheng Wang, is listed as a secondary guarantor.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit No. | Description | |
| 10.1 | Purchase and Sale Agreement between 901 Corporate Center, LP and Focus Universal Inc. dated January 21, 2026. | |
| 10.2 | First Amendment to the Purchase and Sale Agreement between 901 Corporate Center, LP and Focus Universal Inc. dated February 20, 2026. | |
| 10.3 | Second Amendment to the Purchase and Sale Agreement between 901 Corporate Center, LP and Focus Universal Inc. dated March 5, 2026. | |
| 10.4 | Third Amendment to the Purchase and Sale Agreement between 901 Corporate Center, LP and Focus Universal Inc. dated March 13, 2026. | |
| 10.5 | Business Loan Agreement between Lusher Holding LLC and East West Bank dated March 30, 2026, as filed with the SEC on April 23, 2026. | |
| 10.6 | Promissory Note between Lusher Holding LLC and East West Bank dated March 30, 2026, as filed with the SEC on April 23, 2026. | |
| 99.1 | Los Angeles County Assessor’s 2026 Assessment Values of the Parcels | |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: April 27, 2026 |
| FOCUS UNIVERSAL INC. | ||
| By: | /s/ Desheng Wang | |
| Name: | Desheng Wang | |
| Title: | Chief Executive Officer | |
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Exhibit 99.1
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