Gyrodyne, LLC has secured a five-year extension on a $4.95 million loan, pushing the maturity date to October 10, 2031. The move requires a principal paydown and resets the interest rate, offering the company additional time to manage its real estate portfolio while facing significant operational constraints.
The agreement, dated October 19, 2026, was entered into by GSD Cortlandt, LLC, a wholly owned subsidiary of Gyrodyne, and SIG CRE 2023 Venture LLC. GSD Cortlandt is the borrower, while Gyrodyne acts as the guarantor. The loan was originally made by Signature Bank and is secured by a mortgage on GSD Cortlandt's property at 1985 Crompond Road in Cortlandt Manor, New York. The extension agreement is effective as of October 10, 2026.
Under the terms of the new agreement, the interest rate on the loan resets to 7.28 percent per annum. To finalize the extension, GSD Cortlandt executed a principal paydown of $431,411.38. Following this payment and the scheduled principal and interest installments, the outstanding principal balance of the loan stands at $4,041,482.21. Gyrodyne reaffirmed its obligations under its limited guaranty and environmental indemnity agreement, while both GSD Cortlandt and Gyrodyne provided customary releases of claims to the lender and related parties. All other terms of the existing loan documents remain in effect unless modified by the extension agreement.
The filing highlights several risks that could impact the company's future performance. Gyrodyne is currently seeking to sell its properties in an orderly and strategic manner as soon as reasonably practicable. The company faces uncertainty regarding its ability to secure additional capital to fund operations through the end of 2028, relying on property sales or modifications to existing credit facilities. Legal risks include an Article 78 proceeding against the company and potential litigation connected to its property sales efforts.
Operational risks are also prominent in the disclosure. Gyrodyne noted the recent termination of its Chief Operating Officer's employment, leaving the company reliant on a single full-time employee to complete the entitlement, marketing, sale, and liquidation processes. The company is engaged in a national marketing campaign led by JLL for its Flowerfield and Cortlandt Manor properties. Additionally, Gyrodyne has a purchase and sale agreement with B2K, which may be contingent on regulatory conditions lasting several years.
Broader market risks cited in the filing include conditions in the Suffolk and Westchester County real estate markets, ongoing inflation, interest rate uncertainty, and recession risks. The company also referenced lingering effects from the 2023 banking crisis, including the closure of banks that held its mortgage loans, which were transferred to new holders by the FDIC in December 2023. These factors may cause actual results to differ materially from those described in the company's forward-looking statements.