FCUV · Focus Universal Inc.

Focus Universal Inc. completed the acquisition of a Class A office property in Monterey Park, California, through its wholly owned subsidiary Lusher Holding LLC. The $17.7 million purchase was funded by a $11.05 million term loan from East West Bank and $5.8 million in cash. The loan carries a 6.25% fixed rate for the first three years, then floats at WSJ Prime plus 0.25% with a floor of 6.25%, maturing in April 2036. The company is the primary guarantor, with CEO Desheng Wang as secondary guarantor. The property is 99.2% occupied with 16 tenants, providing stable cash flow. The company plans to occupy only 2,000 square feet, indicating the acquisition is primarily for investment purposes. The transaction was not with a related party. The acquisition adds a significant real estate asset to the company's balance sheet and creates a direct financial obligation that will impact future cash flows.