Presidio Property Trust (SQFT) faces $17.7M loan default and Shea Center II foreclosure risk

Rhea-AI Filing Summary

Presidio Property Trust, Inc. reported that its subsidiary NetREIT SC II, LLC received a default notice from Wells Fargo Bank related to a loan originally issued by The Bancorp Bank in the principal amount of $17,727,500.00. The lender alleges an event of default because the borrower did not repay the indebtedness in full by January 5, 2026 under the 2015 promissory note and related loan documents.

Due to the alleged default, all unpaid amounts now bear interest at a default rate equal to the lesser of the maximum rate allowed by law or 5% above the original 4.92% annual interest rate. The notice also states that the lender may foreclose or partially foreclose on the real and personal property securing the loan in Douglas County, Colorado, known as the Shea Center II, and has revoked the borrower’s license to receive and use rents, profits and income from that property. The company states it is exploring options to cure the alleged default.

Positive

• None.

Negative

• Alleged loan default on $17.7 million obligation tied to a 2015 promissory note, increasing financial risk around the Shea Center II property.
• Default interest rate imposed at the lesser of the legal maximum or 5% above the original 4.92% rate, raising borrowing costs on the unpaid balance.
• Foreclosure and cash-flow pressure on collateral as the lender asserts rights to foreclose on Shea Center II and revokes the borrower’s license to collect rents, profits and income from the property.

Insights

Real estate credit analyst

Loan default triggers higher interest and foreclosure risk on Shea Center II.

Presidio Property Trust, Inc. discloses that subsidiary NetREIT SC II, LLC is in alleged default on a commercial real estate loan with an original principal of $17,727,500.00. The lender, Wells Fargo Bank, sent a notice after the borrower did not repay the indebtedness in full by January 5, 2026 under the 2015 promissory note and loan agreement tied to the Shea Center II property in Douglas County, Colorado.

The notice states that, following this alleged event of default, the entire unpaid amount now accrues interest at a default rate equal to the lesser of the legal maximum or 5% above the original 4.92% annual rate. This raises the company’s financing cost on the affected debt and reflects heightened credit stress around this asset-backed obligation.

The lender also asserts rights to foreclose or partially foreclose on the Shea Center II collateral and has revoked the borrower’s license to receive and use rents, profits and income from the property. That combination can pressure cash flow from the asset and potentially lead to loss or impairment of the property if no resolution is reached. The company notes it is exploring options to cure the alleged default, and subsequent disclosures may clarify any workout, repayment, or foreclosure actions taken.

8-K Event Classification

Item 2.04 — Triggering Events That Accelerate or Increase a Direct Financial Obligation

1 item

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation Financial

An event triggered acceleration or increase of an existing financial obligation, such as a debt covenant breach.

Understanding 8-K Material Events →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 21, 2026

Presidio Property Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland		001-34049		33-0841255
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

4995 Murphy Canyon Road, Suite 300

San Diego, California 92123

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (760) 471-8536

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Series A Common Stock, $0.01 par value per share		SQFT		The Nasdaq Stock Market LLC
9.375% Series D Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share		SQFTP		The Nasdaq Stock Market LLC
Series A Common Stock Purchase Warrants to Purchase Shares of Common Stock		SQFTW		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

On January 21, 2026, Presidio Property Trust, Inc. (the “Company”) and NetREIT SC II, LLC, a subsidiary of the Company (the “Borrower”), received a notice (the “Default Notice”) from Wells Fargo Bank, National Association (the “Lender”) alleging that the Borrower’s failure to repay in full by January 5, 2026 the indebtedness owed under that certain promissory note dated as of December 24, 2015 issued to The Bancorp Bank (the “Original Lender”) in the original principal amount of $17,727,500.00 (the “Note”), the related loan agreement, dated as of December 24, 2015 by and between Borrower and the Original Lender (the “Loan Agreement”) and other related agreements (together with the Note and the Loan Agreement, the “Loan Documents”), constitutes an event of default under the Loan Documents.

As a result of the alleged event of default, the entire unpaid amounts shall bear interest at the default interest rate equal to the lesser of (i) the maximum rate permitted by applicable law, or (ii) 5% above the original interest rate of 4.92% per annum. In addition, the Default Notice states that the Lender has the right to foreclose or partially foreclose certain real and personal property that the Borrower had pledged as security for the Note located in Douglas County, Colorado, known as the “Shea Center II” (the “Property”). The Default Notice further states that the Lender revoked the Borrower’s license under the Loan Documents to receive, collect and make use of rents, profits and income from the Property.

The Company is exploring its options to cure the event of default alleged in the Default Notice.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PRESIDIO PROPERTY TRUST, INC.
	By:	/s/ Ed Bentzen
	Name:	Ed Bentzen
	Title:	Chief Financial Officer
Dated: January 23, 2026

FAQ

What did Presidio Property Trust, Inc. (SQFT) disclose in this 8-K?

The company reported that its subsidiary NetREIT SC II, LLC received a default notice from Wells Fargo Bank alleging an event of default on a commercial real estate loan originally issued in the principal amount of $17,727,500.00.

Why is the NetREIT SC II, LLC loan considered in default for SQFT?

Wells Fargo’s notice alleges that the borrower failed to repay in full by January 5, 2026 the indebtedness owed under a promissory note and related loan documents dated December 24, 2015, which the lender states constitutes an event of default.

How does the default affect the interest rate on SQFT’s Shea Center II loan?

Following the alleged event of default, all unpaid amounts bear interest at a default rate equal to the lesser of the maximum rate allowed by law or 5% above the original 4.92% per annum interest rate.

What collateral is at risk from the SQFT loan default?

The loan is secured by certain real and personal property in Douglas County, Colorado, known as the Shea Center II, and the lender states it has the right to foreclose or partially foreclose on that property.

What actions has the lender taken regarding income from the Shea Center II property?

The default notice states that the lender revoked the borrower’s license under the loan documents to receive, collect and make use of rents, profits and income from the Shea Center II property.

Is Presidio Property Trust (SQFT) taking any steps to address the alleged default?

The company states that it is exploring its options to cure the event of default alleged in the default notice from the lender.