Initech PlazaSnapshot

June 2026

Photo slot

Initech Plaza

4120 Swingline Pkwy, Addison, TX 75001

Class A office3 towers1,079,181 SF126 suitesStructured parking

Manager

Lincoln Property Company

Receiver

Trigild

Owner entity

Red Stapler Partners, LP

Basis

Cash basis · open period

Sale · under contract

PSA executed Jun 12 · closing target Oct 15
Buyer deposit $250K refunded & resubmitted Jul 25
$4.6M of capital projects on hold pending sale

Metrics 1–4 of 6

Occupancy

57.7%

623,169 of 1,079,181 SF · 70 suites

84.2K SF leased, not yet paying

NOI, June

$1.37M+$604K vs budget

YTD $2.44M vs $4.76M budget

Timing: $0 tax & insurance in June

Cash

$6.2Moperating

$8.5M restricted · $14.7M total

+$510K vs May · no debt on the books

Rolling in 12 months

14.8%

92,499 SF · 6 leases

29,468 SF already renewed

Unresolved: 63,031 SF, $131K/mo

Leasing pipeline

assumed

153KSF

6 prospects · 34% of vacant SF

1 lease out · 1 LOI · 2 proposals · 2 tours

Sale closing

assumed

Oct 15target

$96.0M · PSA Jun 12 · DD expires Aug 14

Deposit $250K resubmitted Jul 25

Credit Resolution · Sale

Under contract since Jun 12 · milestones on the Credit Resolution tab

DoneDue soonUpcomingWatch

Deposit resubmitted · Jul 25

Then

Due diligence expires · Aug 14 · 30 days

Target

Closing · Oct 15 · 92 days

assumedMilestones invented for the demo

Action Items

Owner and due date on each

Reconcile $888,506 of security deposits held off the financials

Lincoln · Trigild · from Findings

Aug 7

Open

Tenant estoppels for the top 10 (82% of base rent)

Counsel · from Credit resolution

Aug 7

In progress

Confirm 2026 property tax proration ($4.98M accrual) with buyer counsel

Trigild · from Credit resolution

Aug 14

Open

Lender consent package: price, net proceeds, deposit status

Trigild · from Credit resolution

Sep 1

Waiting on lender

Decide release of $4.6M deferred capital or a buyer credit

Trigild · lender · from Credit resolution

Jul 31

Open

Open Flair Mutual renewal talks (38,540 SF, expires Apr 2027)

Broker · from Leasing

Aug 15

Open

Key Dates

Next 90 days · Jul 15 → Oct 13

Remind via Outlook

Jul 25

Deposit $250K resubmitted

statedDue soon

Jul 31

Newhouse Life installment 1 of 6

statedDue soon

Aug 14

Due diligence expires

assumedUpcoming

Aug 17

Second deposit $1.0M hard

assumedUpcoming

Aug 31

Penetrode renewal Sep 1

statedUpcoming

Sep 11

Stairwell railings complete

statedUpcoming

Sep 22

Court hearing on the sale

assumedUpcoming

Sep 30

Penetrode TI completion

statedUpcoming

Metrics 1–4 of 6

NOI, June

$1.37M+$604K vs budget

Revenue $1.92M · expenses $552K

Timing: $0 tax & insurance in June

NOI, year to date

$2.44M−$2.32M vs budget

Budget $4.76M · Jan–Jun

$4.97M 2025 tax paid in January

Revenue, June

$1.92M−$26K vs budget

Rental $1.87M · other income $54K

Parking +$35K · T2 suite 950 still vacant

Cash

$6.2Moperating

$8.5M restricted · $14.7M total

+$510K vs May

Open AR

$200K

4 named past-dues · $139K

$44K recommended for write-off

Capital, June

$658K−$573K vs budget

YTD $2.43M vs $4.25M budget

Penetrode TI $518K landed

Budget Variance

Cash basis · June and year to date

Green favorable · Red unfavorable

	June actual	Budget	Var	YTD actual	Budget	Var
Rental revenue	$1,866,873	$1,932,016	−$65K	$11,228,943	$11,740,125	−$511K
T2 suite 950 budgeted occupied, still vacant. Waddams and Nina in free rent.
Other income	$53,643	$14,442	+$39K	$371,136	$86,652	+$284K
Parking +$35K MTD. Interest income $102K YTD was not budgeted.
Total revenue	$1,920,516	$1,946,458	−$26K	$11,600,079	$11,826,777	−$227K
Taxes & insurance	$0	$473,614	+$474K	$5,547,845	$2,831,683	−$2.72M
Budget accrues monthly; financials are cash basis. 2025 tax of $4,966,223 paid in January.
Utilities	$161,818	$151,150	−$11K	$976,151	$937,590	−$39K
Repairs & maintenance	$97,039	$246,934	+$150K	$852,037	$1,425,035	+$573K
Chiller overhaul and janitorial timing deferred; fitness-center staffing not hired.
Security	$66,966	$68,510	+$2K	$403,200	$419,220	+$16K
Payroll	$86,642	$93,623	+$7K	$540,256	$561,736	+$21K
Management fee	$53,700	$56,152	+$2K	$353,898	$341,358	−$13K
Administration	$66,012	$63,673	−$2K	$381,378	$382,865	+$1K
Other operating	$12,545	$19,500	+$7K	$75,886	$117,000	+$41K
Total operating expenses	$544,722	$1,173,155	+$628K	$9,130,651	$7,016,486	−$2.11M
Non-recoverable	$7,385	$8,700	+$1K	$32,531	$52,200	+$20K
Owner legal $6,000 in June.
Net operating income	$1,368,409	$764,603	+$604K	$2,436,897	$4,758,091	−$2.32M
Capital expenses	$657,816	$85,000	−$573K	$2,428,053	$4,248,038	+$1.82M
Penetrode TI $518K in June. Building improvements ($2.64M budget) unapproved pending sale.

Capital Spend

June against budget · work in progress at Jun 30

June capital−$573K vs budget

Actual

$658K

Budget

$85K

YTD capital+$1.82M vs budget

Actual

$2.43M

Budget

$4.25M

Tenant improvement WIP

Penetrode $1,106,673 · Waddams $63

$1,106,736

Lease commission WIP

Penetrode $512,594 · Bobs Consulting $103,928

$616,522

Building WIP

T1 floor 2 corridor & restrooms · T2 floor 12

$222,430

$4.59M across 14 projects is on hold pending sale; the list is on the Credit Resolution tab.

Tax and Insurance

Each bill against the cash that pays it

2026 property tax

Due Jan 31, 2027 · 200 days

~$4.98Mstatutory

Tax reserve$288K · 6%

Operating cash$6.2M · 1.24×

Plan the sweepderived

Amount from the budget accrual; 2025 bill was $4.97M, paid in January. Prorated at closing if the sale closes first.

Insurance renewal

Assumed Mar 1, 2027

~$582Kassumed

Operating cash$6.2M · 10.6×

Mandated railings$1.62M · unbudgeted, in progress

Condition openderived

Underwriter requires stairwell railings in all towers and the garage; the work was approved Jun 15 and is due to finish Sep 11.

Key Findings

12 this month, ranked by severity

Scrolls · 12 findings

HighTiming

June NOI beats budget by $604K on timing alone

No tax or insurance was paid in June on a cash basis. YTD NOI trails budget by $2.32M after the $4.97M 2025 tax payment in January.

HighReconciliation

$888,506 of security deposits are off the financials

Collected by prior management and excluded "per Trigild"; only $37,711 is on the books. The $926,218 total will need reconciling before any sale closes.

HighExposure

Insurer-mandated railing work, $1.62M, is underway and unbudgeted

Underwriter letter dated May 6 covers all towers and the garage. Approved Jun 15, demolition and erection in progress, completion estimated Sep 11.

MediumReconciliation

Management fee appears three ways

$53,700 on the P&L, $39,883 on the June invoice (2% of receipts), $36,830 paid in June for May. They do not reconcile.

MediumExposure

Flair Mutual, 38,540 SF and $91.5K/mo, expires Apr 30, 2027

Fourth-largest rent, and the largest expiration before 2029. No renewal activity is reported.

MediumRecommendation

Write off Jump to Conclusions LLC, $44,411

Tenant has vacated. The manager recommends bad-debt treatment; it is the whole of the 4-month bucket.

MediumSale overhang

June capex $658K against an $85K budget

Penetrode TI of $518K landed. YTD capex is $1.82M under budget only because $2.64M of building improvements are unapproved pending sale.

LowData quality

Initech suite 200 shows $3.64 PSF

$46,097/mo on 20,115 SF implies $27.50. The rent roll PSF is mis-computed; dollar totals tie.

4 more findings

Metrics 1–4 of 6

Occupancy

57.7%

623,169 SF · 70 suites · Jun 30 rent roll

Leased incl. free rent: 65.5%

Leased, not yet paying

stated

84.2KSF

Lawrence Tech 45,271 · Penetrode 24,390 · Waddams · Nina

Rent starts Aug – Nov

Pipeline

assumed

153KSF

6 prospects · broker report Jul 10

1 lease out · 1 LOI · 2 proposals · 2 tours

In-place base rent

$23.47PSF

Recoveries add $12.90 PSF

Asking $30.00 – 34.50 full service

On occupied SF, Jun rent roll

Rolling in 12 months

14.8%

92,499 SF · 6 leases

29,468 SF already renewed

Unresolved: 63,031 SF, $131K/mo

WALT

derived

5.3yrs

SF-weighted, stated expirations

5.6 yrs crediting Penetrode renewal

Leasing Activity

Broker weekly leasing report · Jul 10, 2026

153,002 SFin play · 34% of vacant SF · asking $30.00 – 34.50 FSassumed

ProspectSpaceSFStageAskTITerm

Financial services (confidential)Two full floors · Q2 2027 delivery

T3 · 15–16 52,282 Proposal $34.50 $95 10 yr

Regional law firmCompeting with Parkway Plaza II

T2 · 7 24,968 LOI $33.00 $85 7 yr

Bobs Consulting, expansionAdjacent to their floor 9

T3 · 8 26,599 Toured $33.50 $70 Co-term 2035

Engineering firmRelocation from downtown

T1 · 7 24,356 Tour Jul 21 $31.50 — —

Insurance TPAAsked for 12 months free

T2 · 6 19,617 Proposal $32.50 $80 5 yr

Boutique consultingAs-is · spec suite 275 on hold

T1 · 2 5,180 Lease out $30.00 $45 5 yr

Signed, in free rent · 84,233 SF

Penetrode · Renewal + expansion · Sep 153,858 SF

Lawrence Tech · T2 floors 11–1245,271 SF

Waddams Group · Free rent to Nov7,676 SF

Nina Associates · Free rent to Aug 306,896 SF

Market

North Tollway Class A · Q2 2026 · illustrative

Initech PlazaSubmarket

Vacancy 42.3% 27.4% derived

Asking rent (FS) $32.50 $32.10 assumed

TI, new 10-yr deal $95 PSF $85 – 110 assumed

Free rent, 10-yr deal 10 mo 10 – 14 mo assumed

Net absorption Q2 +7.7K SF −142K SF derived

Sublease available 0 SF 1.9M SF stated

Recent comparable deals

assumed

Tower at Northside · May 202642,000 SF$34.00$11014 mo

Parkway Plaza II · Apr 202631,000 SF$33.00$10012 mo

Meridian Center · Jun 202618,500 SF$30.50$758 mo

Stacking Plan

Suite SF against a typical floor plate · floors inferred from suite numbers derived

Occupied, paying Leased, not yet paying Vacant Amenity

Tower 1

48.5% · 325,435 SF

Penetrode

Chotchkie’s Holdings

Drew Interactive

Portwood Savings

Swingline Metals

Slydell Trust

Flingers Cafe

Fitness

Tower 2

61.7% · 338,388 SF

Gibbons & Nagheenanajar

TPS Royalties

Lawrence Tech

Peggy Re

Flair Mutual

Newhouse Life

Lumbergh Realty

Samir Systems

Lumbergh Realty

Tower 3

61.8% · 415,358 SF

Initrode

Stan Life

Bobs Consulting

Initech

Lease Expirations

Occupied SF by expiration year · share of 623,169 SF

Expiring Already renewed Renewal lands here

2026

33,136 SF · 5.3%

Penetrode 29,468 renewed to 2032 · Brian Partners · management office

2027

60,907 SF · 9.8%

Flair Mutual 38,540 · Portwood Savings · Flingers Cafe · Bolton Underwriting

2028

20,269 SF · 3.3%

Chotchkie’s Holdings · Kung Fu Athletic

2029

45,214 SF · 7.3%

Lumbergh Realty 35,033 · Slydell Trust

2030

35,286 SF · 5.7%

Stan Life · Samir Systems · Newhouse

2031

55,378 SF · 8.9%

Lawrence Tech 45,271 · Waddams · Anne Re

2032

176,542 SF · 28.3%

Initech 152,152 · Penetrode expansion 24,390 · + Penetrode renewal

2033+

170,791 SF · 27.4%

Initrode · Bobs Consulting · Gibbons & Nagheenanajar · TPS · Swingline Metals

Tenant Concentration

Top 10 by monthly base rent

82%of base rent from the top 10 · Initech alone is 28.6%derived

InitechT3

$349K

28.6%

Initrode WorkspacesT3

$120K

9.8%

PenetrodeT1Renewing

$117K

9.6%

Flair Mutual InsuranceT2Expiring

$92K

7.5%

Lumbergh RealtyT2

$77K

6.3%

Bobs ConsultingT3

$65K

5.3%

Gibbons & NagheenanajarT2

$60K

4.9%

Chotchkie’s HoldingsT1

$41K

3.4%

TPS RoyaltiesT2

$41K

3.4%

Swingline MetalsT1

$41K

3.4%

Lawrence Tech (45,271 SF) is absent: $0 base rent while in free rent. Penetrode SF is the in-place lease; it expands to 53,858 SF on Sep 1. Monthly base rent, share of $1,218,900.

Delinquencies

Named past-dues and the aging behind them

Newhouse LifeOn plan

2025 CAM reconciliation · Six installments, Jul–Dec

$67,412

Jump to Conclusions LLCWrite-off

Vacated tenant · Manager recommends bad debt

$44,411

Peggy ReinsuranceExpected

2026 CAM reconciliation · With July rent

$20,644

Flingers CafeExpected

Grease-trap billback · Balance with July rent

$6,538

Open AR

$200,242

Prepaid balances

$545,808

Net ledger

($345,565)

($408K)

Current

($84K)

1 mo

$105K

2 mo

($13)

3 mo

$42K

4+ mo

The aging grand total is a net credit: prepaids and a $299,304 Swingline Metals TI credit outweigh past-dues. Parenthesised buckets are credits.

Watch List

Expirations without renewal activity · tenants in arrears

Flair Mutual InsuranceT2 · 8–9 · 38,540 SF · $91.5K/mo

Expires Apr 30, 2027 · no renewal activity reported

statedWatch

Jump to Conclusions LLCVacated · $44,411 open

Manager recommends bad-debt write-off

statedWrite-off

Portwood SavingsT1 · 8 · 9,636 SF

Expires Jun 2027 · no activity

statedUpcoming

Flingers CafeT1 · 1 · 9,257 SF

Expires Jul 2027 · $6,538 grease-trap billback open

statedUpcoming

Brian PartnersT2 · 4 · 2,196 SF

Expires Dec 2026 · no activity

statedUpcoming

Telecom rooftop antenna$500/mo

Expires Sep 19 · no renewal noted

statedMinor

Resolution path

SaleForeclosureDeed in lieuNote sale

statedThe package reports the property marketed for sale with a buyer deposit in hand. The path sets which timeline template applies.

Contract price

assumed

$96.0M

$89 PSF · $154 per occupied SF

94% of the Jan 2026 as-is appraisal ($102.0M)

Deposits

stated

$250Kescrowed

Second deposit $1.0M due Aug 17 · $1.25M at hard

Initial deposit refunded and resubmitted Jul 25

Due diligence

assumed

30days left

Expires Aug 14 · 60 days from PSA

Buyer may terminate for any reason until then

Closing

assumed

92days to target

Oct 15 target · outside date Nov 30

Court hearing Sep 22 · lender consent Sep 8

Sale Timeline

Marketing launch to closing · shaded band is due diligence

DoneDue soonUpcomingWatch

Milestones

Marketing, bids, contract and closing

Feb 9

Marketing launch

MarketingBroker engaged; teaser to 1,400 contacts

assumedDone

Feb 16

Offering memorandum out

Marketing212 confidentiality agreements signed

assumedDone

Mar 2 – Apr 3

Property tours

Marketing14 tours; 9 groups toured twice

assumedDone

Apr 9

Initial call for offers

Bids6 offers, $84M – $101M

assumedDone

Apr 30

Second call for offers

Bids4 bidders invited back

assumedDone

May 14

Best and final

Bids3 bids; buyer selected May 21

assumedDone

Jun 12

PSA executed

Contract$96.0M · 60-day due diligence · court approval condition

assumedDone

Jul 25

+10d

Initial deposit $250K resubmitted

DepositRefunded and resubmitted per acct 25390

statedDue soon

Aug 14

+30d

Due diligence expiration

DiligenceBuyer may terminate for any reason until 5 pm CT

assumedUpcoming

Aug 17

+33d

Second deposit $1.0M, non-refundable

DepositTotal at risk $1.25M · 1.3% of price

assumedUpcoming

Sep 8

+55d

Plaintiff (lender) approval

ApprovalConsent to price and net proceeds

assumedUpcoming

Sep 22

+69d

Court hearing, motion to approve sale

ApprovalMotion filed Aug 21 · objections due Sep 15

assumedUpcoming

Oct 15

+92d

Closing, target

ClosingOutside date Nov 30 · prorations at close

assumedUpcoming

Action Items

Pre-closing checklist

Reconcile $888,506 of security deposits held off the financials

Lincoln · Trigild · from Findings

Aug 7

Open

Tenant estoppels for the top 10 (82% of base rent)

Counsel · from Credit resolution

Aug 7

In progress

Confirm 2026 property tax proration ($4.98M accrual) with buyer counsel

Trigild · from Credit resolution

Aug 14

Open

Lender consent package: price, net proceeds, deposit status

Trigild · from Credit resolution

Sep 1

Waiting on lender

Decide release of $4.6M deferred capital or a buyer credit

Trigild · lender · from Credit resolution

Jul 31

Open

File the motion to approve the sale for the Sep 22 hearing

Counsel · from Credit resolution

Aug 21

Not started

Updated title commitment and lien search

Title company · from Credit resolution

Aug 1

In progress

Deferred Pending Sale

Projects on hold pending sale

$4,585,240across 14 projects marked "on hold pending sale of property"

stated

Garage elevator modernization$1,250,000

Tower 1 chiller replacement$1,250,000

Tower 1 lower-level roof$455,000

Spec suite 280$279,999

Spec suite 1050$258,450

Exterior driveway repairs$250,000

Spec suite 290$240,591

Spec suite 275$151,200

Landscape bollard replacement$140,000

Curtain-wall investigation$90,000

Tower 3 chiller tear-down$90,000

Camera replacement$60,000

Atrium wet-seal$50,000

Garage LPR signage$20,000

The $2.64M building-improvement budget is unapproved for the same reason. The $1.62M insurer-mandated railings are not on hold; they are underway.

Metrics 1–4 of 6

Rentable area

stated

1.08MSF

3 towers · 126 suites · Class A

Structured parking, fitness, conference centre, cafe

Floors

derived

12 · 14 · 16

Tower 1 · Tower 2 · Tower 3

Floor plates 24 – 27K SF

Year built

assumed

1983–98

T1 1983 · T2 1986 · T3 1998

Lobbies and fitness centre renovated 2019

Parking

assumed

3,240spaces

Structured garage · 3.0 per 1,000 SF

Garage elevator modernization deferred

Site

assumed

22.4acres

Swingline Pkwy frontage · Addison, TX

North Tollway submarket

Appraised as-is

assumed

$102.0M

$95 PSF · Jan 12, 2026

Contract price is 94% of as-is

Photos

From the appraisal and the marketing package

4 of 22

Exterior · Swingline Pkwy

Lobby · Tower 3

Atrium

Garage

Appraisal

Receiver-ordered, Jan 2026

assumed

As-is value

$102.0M

$95 PSF

Date

Jan 12, 2026

Receiver-ordered

Stabilised value

$168.0M

85% occupancy, 2029

Cap rate

8.75%

On stabilised NOI

Discount rate

10.5%

Leased-fee DCF

Land value

$14.2M

22.4 acres

Building Systems

Property condition assessment, Dec 2025

assumed

SystemConditionDeferred cost

Structure & facade Steel frame, concrete deck · curtain-wall investigation recommended Good $90,000on hold

Roof Tower 1 lower-level roof at end of life Fair $455,000on hold

HVAC Tower 1 chillers original · Tower 3 chiller tear-down Poor $1,340,000on hold

Elevators Garage elevators: modernization recommended Fair $1,250,000on hold

Life safety Stairwell railings, all towers and garage · insurer mandate In progress $1,622,976in progress

Parking & site Driveway repairs · landscape bollards · garage LPR signage Fair $410,000on hold

Security & envelope Camera replacement · atrium wet-seal Fair $110,000on hold

Conditions from the PCA are placeholders. Deferred costs are the package's on-hold list: $3.66M of building work plus $930K of spec suites.

Floor Plans

Typical floors; suite plans attach per lease

Plan slots

Tower 1~24,400 SF

Tower 2~25,000 SF

Tower 3~26,400 SF

Discussion Points

For the next lender and manager calls

Who funds the 2026 property tax ($4.98M, due Jan 31) if closing slips past year end: receiver sweep or lender?

Lender call

Open

Is completion of the stairwell railings (Sep 11) a condition of the March insurance renewal?

Broker · insurer

Open

Which of the 14 deferred projects should proceed before close: garage elevators and the T1 chiller are the life-safety-adjacent ones

Lender call

Open

Management fee basis: $53.7K on the P&L, $39.9K invoiced, $36.8K paid

Lincoln

Open

Penetrode: collect the $56.6K TI overage at completion; Sep 1 commencement of the 53,858 SF lease

Lincoln

Decided

How much of the leasing pipeline goes into the receiver's report, given the tenant market

Trigild

Decided · keep it general

Recurring Obligations

The property’s calendar

Property tax

Jan 31, yearly

~$5.0M

statutory

Texas margin tax

May 15, yearly

~$72K

statutory

Insurance premium

March, yearly

~$582K

assumed

CAM reconciliation

Q1, yearly

Billed to tenants

assumed

Management fee

Monthly

2% of receipts

stated

Lender sweep

Monthly

~$48K + periodic

stated