Sterling Real Estate Trust, a North Dakota-based real estate investment firm, has entered into a new financial agreement with Bell Bank. On Monday, June 25, 2024, the company, through its operating entity Sterling Properties L.L.L.P., secured a $10 million promissory note from the bank.
The note, which is due for full repayment on December 20, 2024, has a variable interest rate tied to the Prime Rate as published in the Wall Street Journal. This rate is subject to change based on fluctuations in the index. Sterling Properties has the option to prepay the note without incurring any penalties.
This financial obligation includes customary default provisions that allow Bell Bank to demand immediate payment of the unpaid principal and any accrued interest if Sterling Properties defaults. Additionally, the promissory note is backed by a guarantee from Sterling Real Estate Trust.
The relationship between Sterling Real Estate Trust and Bell Bank is longstanding, with the bank providing various financial services to the company over time. Notably, James S. Wieland, a trustee of Sterling Real Estate Trust, sits on the board of Bell Bank, indicating a potential indirect material interest in the transaction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.