Belpointe PREP, LLC Enters Material Agreement

TL;DR

Belpointe PREP, LLC signed a new deal creating a financial obligation.

AI Summary

On June 28, 2024, Belpointe PREP, LLC entered into a material definitive agreement, which also created a direct financial obligation for the registrant. The company is incorporated in Delaware and its principal executive offices are located at 255 Glenville Road, Greenwich, Connecticut.

Why It Matters

This filing indicates Belpointe PREP, LLC has entered into a significant agreement that creates a financial obligation, which could impact its financial standing and future operations.

Risk Assessment

Risk Level: medium — Entering into new material agreements and financial obligations can introduce financial risks and operational complexities.

Key Players & Entities

• Belpointe PREP, LLC (company) — Registrant
• June 28, 2024 (date) — Date of earliest event reported
• 255 Glenville Road, Greenwich, Connecticut (location) — Principal executive offices

FAQ

Key Financial Figures

• $104 million — with Lender, the "Lenders"), for up to $104 million in principal amount (the "Loan"). The L
• $110.0 million — we maintain a net worth of no less than $110.0 million and liquidity of not less than $10.0 mi
• $10.0 million — million and liquidity of not less than $10.0 million during the term of the Loan. Together

Filing Documents

• form8-k.htm (8-K) — 38KB
• 0001493152-24-026395.txt ( ) — 208KB
• oz-20240705.xsd (EX-101.SCH) — 3KB
• oz-20240705_lab.xml (EX-101.LAB) — 33KB
• oz-20240705_pre.xml (EX-101.PRE) — 22KB
• form8-k_htm.xml (XML) — 4KB

01

Item 1.01 Entry into a Material Definitive Agreement. On June 28, 2024, an indirect majority-owned subsidiary (the "Borrower") of Belpointe PREP, LLC (the "Company" "we," "us" or "our") entered into a construction loan agreement (the "Construction Loan Agreement") with a lender ("Lender") as agent for certain lenders (together with Lender, the "Lenders"), for up to $104 million in principal amount (the "Loan"). The Loan is evidenced by promissory notes with the Lenders (the "Notes") and bears interest at a rate of 3.8% per annum plus the one-month forward-looking term rate for SOFR as set by the CME Group Benchmark Administration Limited, subject to further adjustment as set forth in the Construction Loan Agreement. The Loan is secured by, among other things, a first-lien mortgage on 1000 1st Avenue North, St. Petersburg, Florida, our investment known as "Viv" ("Viv"), pursuant to the terms of a Construction Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing (the "Security Interest" and, together with the Construction Loan Agreement and the Notes, the "Loan Documents"). Advances under the Loan may be used to fund the continued development of, and for certain leasing costs and expenses incurred in connection with, Viv, as well as to establish certain reserves required under the terms of Construction Loan Agreement. The Loan has an initial maturity date of June 28, 2027, and contains two one-year extension options, subject to certain restrictions. In connection with the Loan, we provided the Lenders with (i) a Debt Service and Carry Guaranty, which, among other things, guarantees payment of interest and principal on the Loan, certain obligations under the Construction Loan Agreement and other costs and expenses associated with and allocable to the operation, maintenance and management of Viv, (ii) a Completion Guaranty, which, among other things, guarantees completion of the work on Viv, and (iii) a Non-Recourse Carveout Guaranty, whic

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information related to the Loan Documents and Guarantees described under Item 1.01 above is hereby incorporated by reference under this

SIGNATURES

SIGNATURES 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. Dated: July 5, 2024 BELPOINTE PREP, LLC By: /s/ Brandon E. Lacoff Brandon E. Lacoff Chairman of the Board and Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR