The InterGroup Corporation (InterGroup) engages in buying, developing, operating, rehabilitating, and disposing real property of various types and descriptions and other business and investment activities.
The company owns approximately 75.7% of the outstanding common shares of Portsmouth Square, Inc. (Portsmouth). In December 2021, Portsmouth replaced Justice as the single member of Justice Mezzanine Company, LLC (Mezzanine). Mezzanine is the borrower under certain mezzanine indebtedness of Ju...
The InterGroup Corporation (InterGroup) engages in buying, developing, operating, rehabilitating, and disposing real property of various types and descriptions and other business and investment activities.
The company owns approximately 75.7% of the outstanding common shares of Portsmouth Square, Inc. (Portsmouth). In December 2021, Portsmouth replaced Justice as the single member of Justice Mezzanine Company, LLC (Mezzanine). Mezzanine is the borrower under certain mezzanine indebtedness of Justice, and in December 2013, the Partnership conveyed ownership of the Hotel to Operating. The Hotel is a full-service Hilton brand hotel pursuant to a Franchise License Agreement with HLT Franchise Holding LLC (Hilton) through January 31, 2030.
In addition to the operations of the Hotel, the company generates income from the ownership, management and, when appropriate, sale of real estate. Properties include sixteen apartment complexes, one commercial real estate property and three single-family houses. The properties are located throughout the United States but are concentrated in Texas and the County of Los Angeles, California. The company also has an investment in unimproved real property. As of June 30, 2023, all the company's operating real estate properties were managed in-house.
Hilton Hotels Franchise License Agreement
Justice Investors Limited Partnership, a California limited partnership (Justice or the Partnership) has a Franchise License Agreement (the License Agreement) with the HLT Existing Franchise Holding LLC (Hilton).
Hotel Management Company Agreement
Justice Operating Company, LLC (Operating) has a hotel management agreement (HMA) with Aimbridge Hospitality (Aimbridge) to manage the Hotel, along with its five-level parking garage. The term of the management agreement is for an initial period of ten years commencing on the February 3, 2017, date and automatically renews for successive one year periods, not to exceed five years in the aggregate, subject to certain conditions. Under the terms on the HMA, base management fee payable to Aimbridge shall be one and seven-tenths percent (1.70%) of total Hotel revenue.
Chinese Culture Foundation Lease
The Partnership has an amended lease with the Chinese Culture Foundation of San Francisco (the Foundation) for the third-floor space of the Hotel commonly known as the Chinese Culture Center, which the Foundation had right to occupy pursuant to a 50-year nominal rent lease.
Rental Properties
As of June 30, 2023, the company's investment in real estate consisted of twenty properties located throughout the United States, with a concentration in Texas and Los Angeles County, California. These properties include sixteen apartment complexes, three single-family houses as strategic investments and one commercial real estate property. All properties are operating properties. In addition to the properties, the company owns approximately 2 acres of unimproved land in Maui, Hawaii. As of June 30, 2023, all the company's operating real estate properties are managed in-house.
Properties
Las Colinas, Texas: The Las Colinas property is a waterfront apartment community along Beaver Creek with 358 units on approximately 15.6 acres of land.
Morris County, New Jersey: The Morris County property is a two-story garden apartment complex with 151 units on approximately 8 acres of land.
St. Louis, Missouri: The St. Louis property is a two-story project with 264 units on approximately 17.5 acres.
Florence, Kentucky: The Florence property is a three-story apartment complex with 157 units on approximately 6.0 acres.
Los Angeles, California: The company owns one commercial property, twelve apartment complexes, and three single-family houses in the general area of County of Los Angeles, California (Los Angeles).
The company's Los Angeles commercial property is a 5,503 square foot, two story building that served as its corporate offices until it was leased out, effective October 1, 2009, and the company leased a new space for its corporate office.
The first Los Angeles apartment complex is a 10,600 square foot two-story apartment with 12 units. The second Los Angeles apartment complex is a 12,700 square foot apartment with 14 units. The third Los Angeles apartment complex is a 10,500 square foot apartment with 9 units. The fourth Los Angeles apartment complex is a 26,100 square foot two-story apartment with 31 units. The fifth Los Angeles apartment complex is a 27,600 square foot two-story apartment with 30 units. The sixth Los Angeles apartment complex is a 3,000 square foot apartment with 4 units. The seventh Los Angeles apartment complex is a 4,500 square foot two-story apartment with 4 units. The eighth Los Angeles apartment complex is a 7,500 square foot apartment with 7 units. The ninth Los Angeles apartment complex is a 13,000 square foot two-story apartment with 8 units. The tenth Los Angeles apartment complex is a 4,200 square foot two-story apartment with 2 units. The eleventh apartment is a 6,316 square foot two-story apartment with 9 units, which is in Marina del Rey, California. The twelfth Los Angeles apartment complex is a 4,093 square foot apartment with 4 units.
The first Los Angeles single-family house is a 2,771 square foot home. The second Los Angeles single-family house is a 2,201 square foot home. The third Los Angeles single-family house is a 2,387 square foot home.
Maui, Hawaii: The company owns an approximately two-acre parcel of unimproved land in Kihei, Maui, Hawaii.
Seasonality
Historically, the Hotel's operation has been seasonal under normal circumstances. Like most hotels in the San Francisco area, the Hotel generally maintained high occupancy and room rates during the entire year except for the weeks starting from Thanksgiving to first week of January due to the holiday season.
History
The InterGroup Corporation was founded in 1965. The company, a Delaware corporation, was incorporated in 1985.
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