FOCUS UNIVERSAL INC. 8-K

What Happened

• Focus Universal Inc., through its wholly owned subsidiary Lusher Holding LLC, closed on the purchase of a Class A office and commercial building with a four-level parking structure at 901 Corporate Center Drive, Monterey Park, CA on April 17, 2026. The aggregate purchase price was $17,700,000 (exclusive of closing costs). The seller was 901 Corporate Center, LP (not an affiliate).
• The acquisition was funded with an $11,050,000 term loan from East West Bank and $5,797,151.82 in cash at closing. The Company made an earlier down payment of $525,000 on January 26, 2026. The purchase price was effectively reduced by about $419,152.91 for prorations and prepaids; after closing costs the Company received a remaining balance of $2,334.
• The Property comprises roughly 100,743 rentable sq ft of Class A office space on ~10.73 acres (four parcels), has a parking ratio of 4.1/1,000 (including a solar‑panel‑canopied parking structure), and is currently ~99.2% occupied by about 16 tenants. Focus plans to occupy ~2,000 sq ft and retained Lee & Associates for property management while previous manager Jamison Services will remain 30 days to assist transition.

Key Details

• Purchase price: $17,700,000; parcels assessed at ~$28,424,982 (Los Angeles County Assessor, 2026).
• Financing: $11,050,000 East West Bank loan; interest 6.25% fixed for first 3 years, then WSJ Prime + 0.25% with a 6.25% floor.
• Loan payments: 83 monthly P&I payments ≈ $68,698.64 starting May 1, 2026; then 83 monthly P&I payments ≈ $73,917.99 starting May 1, 2029 (rate‑dependent); final balloon ≈ $9,533,143.67 due April 1, 2036 (subject to rate changes).
• Guarantees: Focus Universal listed as primary guarantor; CEO Dr. Desheng Wang listed as secondary guarantor.

Why It Matters

• This acquisition adds a sizeable, high‑occupancy Class A office asset to Focus Universal’s portfolio, providing rental cash flow and long‑term leases (most 5–8 year terms) while the company will occupy a small portion for operations.
• It also meaningfully increases the company’s leverage and creates a long‑term debt obligation with scheduled monthly payments and a large final payment in 2036. Investors should note the $11.05M loan, the interest reset after 3 years, and the company/CEO guarantees when assessing liquidity and risk.