Presidio Property Trust Faces Loan Default on Dakota Center
The company is working with lenders to resolve the non-recourse debt tied to a Fargo, ND property.
March 18, 2025
Presidio Property Trust, Inc. has hit a roadblock with an $11.1 million loan tied to the Dakota Center in Fargo, North Dakota. On March 13, 2025, the company received a notice of default after the loan reached maturity. Now, it's dealing with higher costs, including a penalty interest rate and lender-related expenses.
Increased Financial Obligations
The loan, secured by the Dakota Center, was originally issued in 2014. With the default, Presidio now faces:
- An interest rate that’s 5% higher than before
- Legal fees and third-party report costs
- Loan servicing expenses
The company is actively working with its lender and a special servicer to sell the property and settle the outstanding non-recourse debt.
Market Challenges and Investor Focus
Commercial real estate markets remain challenging, and firms are navigating a landscape of rising interest rates and shifting demand. For Presidio, resolving this default efficiently will be critical. Investors will be watching how the company manages the situation and what impact, if any, it has on broader financial stability.
Looking Ahead
Presidio, which trades on the Nasdaq under SQFT, invests in a range of real estate assets. The company has not provided further details on the financial implications of the default or its strategy moving forward.
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