Mortgage Debt

9 Months Ended

Sep. 30, 2023

Mortgage Debt [Abstract]

Mortgage Debt

4. Mortgage Debt

On July 28, 2015, Palmer-Mapletree LLC, a wholly-owned subsidiary of the Company entered into a Loan Agreement (the “Loan Agreement”) with Natixis Real Estate Capital LLC providing for a mortgage loan in the principal amount of $1,750,000 (the “Loan”) at an interest rate of 6.031%. Loan proceeds of $934,794 were used to repay the prior mortgage loan and line of credit on the Mapletree Property. Loan proceeds of $123,757 were set aside for capital improvements and reserves for the property. We received net proceeds of $585,125. The Loan matures on August 5, 2025 and requires monthly principal and interest payments of $11,308 and escrows for insurance, taxes and capital improvements. Escrow balances are considered restricted cash. The mortgage is presented net of unamortized Mortgage costs, the outstanding balance of the loan and loan costs were as follows:

	Mortgage		Unamortized		Interest
	Balance		mortgage Costs		Expense
September 30, 2023	$	1,451,934	$	28,513	$	67,098
December 31, 2022	$	1,486,191	$	40,313	$	91,885

The Company is required to maintain certain financial covenants on the mortgage. On November 1, 2023 the Company was notified by the loan special servicer that the Company, in its role as a Guarantor of the Loan, was in default of the Guarantor Liquidity Covenant on the loan. The Company has notified the special servicer that it disagrees with their calculation of the liquidity covenant and is working with them to resolve this issue.

The Company was in compliance with all other financial covenants on the loan at September 30, 2023 and December 31, 2022.

Future maturities of mortgage payments are as follows:

2023	$	12,591
2024		50,269
2025	$	1,389,074