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<head><title>Hartman XX Form 8K - Parkway Plaza</title> </head> <body style="MARGIN-TOP:0px; FONT-FAMILY:Times New Roman; COLOR:#000000; FONT-SIZE:10pt"> <p style="MARGIN:0px; FONT-SIZE:12pt" align=center><b>UNITED STATES </b></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=center><b>SECURITIES AND EXCHANGE COMMISSION </b></p> <p style=MARGIN:0px align=center><br></p> <p style=MARGIN:0px align=center><b>Washington, D.C. 20549</b></p> <p style=MARGIN:0px align=center><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=center><b>FORM 8-K</b></p> <p style=MARGIN:0px align=center>CURRENT REPORT </p> <p style=MARGIN:0px align=center><br></p> <p style=MARGIN:0px align=center><b>Pursuant to Section 13 Or 15(d) of </b></p> <p style=MARGIN:0px align=center><b>The Securities Exchange Act of 1934 </b></p> <p style=MARGIN:0px align=center><br></p> <p style=MARGIN:0px align=center>Date of Report (Date of earliest event reported) <b>March 21, 2013</b></p> <p style=MARGIN:0px align=center><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=center><b>HARTMAN SHORT TERM INCOME PROPERTIES XX, INC..</b></p> <p style=MARGIN:0px align=center>(Exact name of registrant as specified in charter) </p> <p style=MARGIN:0px align=center><br></p> <table width=100% style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr height=0 style=FONT-SIZE:0px> <td width=184> <td width=23> <td width=172> <td width=23> <td width=172 /> </tr><tr> <td width=576 colspan=5 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td></tr> <tr> <td width=184 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=23 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=172 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=23 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=172 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td></tr> <tr> <td width=184 style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=bottom> <p style=MARGIN:0px align=center><b>Maryland</b></p></td> <td width=23 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>&nbsp;</p></td> <td width=172 style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=bottom> <p style=MARGIN:0px align=center><b>333-154750</b></p></td> <td width=23 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>&nbsp;</p></td> <td width=172 style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=bottom> <p style=MARGIN:0px align=center><b>26-3455189</b></p></td></tr> <tr> <td width=184 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px align=center>(State or other jurisdiction </p> <p style=MARGIN:0px align=center>of incorporation)</p></td> <td width=23 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>&nbsp;</p></td> <td width=172 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=center>(Commission File Number)</p></td> <td width=23 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>&nbsp;</p></td> <td width=172 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=center>(IRS Employer Identification No.)</p></td></tr></table> <p style=MARGIN:0px><br></p> <table style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0 align=center> <tr height=0 style=FONT-SIZE:0px> <td width=350> <td width=30> <td width=350 /> </tr><tr> <td width=731 colspan=3 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td></tr> <tr> <td width=350 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=30 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=350 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td></tr> <tr> <td width=350 style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=bottom> <p style=MARGIN:0px align=center><b>2909 Hillcroft, Suite 420, Houston, Texas</b></p></td> <td width=30 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>&nbsp;</p></td> <td width=350 style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=bottom> <p style=MARGIN:0px align=center><b>77057</b></p></td></tr> <tr> <td width=350 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px align=center>(Address of principal executive offices)</p></td> <td width=30 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>&nbsp;</p></td> <td width=350 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px align=center>(Zip Code)</p></td></tr></table> <p style=MARGIN:0px align=center><br></p> <p style=MARGIN:0px align=center>Registrant's telephone number, including area code: <b>(713) 467-2222</b></p> <p style=MARGIN:0px align=center>&nbsp;</p> <table style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0 align=center> <tr height=0 style=FONT-SIZE:0px> <td width=45> <td width=524 /> </tr><tr> <td width=569 colspan=2 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td></tr> <tr> <td width=45 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=524 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td></tr> <tr> <td width=569 colspan=2 style=MARGIN-TOP:0px> <p style=MARGIN:0px>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</p></td></tr> <tr> <td width=45 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>&nbsp;</p></td> <td width=524 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>&nbsp;</p></td></tr> <tr> <td width=45 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>[ ]</p></td> <td width=524 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</p></td></tr> <tr> <td width=45 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>[ ]</p></td> <td width=524 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>Soliciting material pursuant to Rule #14a-12 under the Exchange Act (17 CFR 240.14a-12)</p></td></tr> <tr> <td width=45 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>[ ]</p></td> <td width=524 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</p></td></tr> <tr> <td width=45 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>[ ]</p></td> <td width=524 style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</p></td></tr></table> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br><br></p> <hr size=1 noshade style="MARGIN-BOTTOM:9px; PADDING-TOP:9px"> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px"><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><b>Item 1.01 &nbsp;&nbsp;Entry into a Material Definitive Agreement.</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=justify><b><i>Property Acquisition</i></b></p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>The information set forth under Items 2.01 and 2.03 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 1.01</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b>Item 2.01 &nbsp;&nbsp;Completion of Acquisition of Disposition of Assets.</b></p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>On March 15, 2013, Hartman Short Term Income Properties XX, Inc. (the &#147;Company&#148;) acquired a fee simple interest in two office buildings comprising approximately 136,506 square feet located in Dallas, Texas commonly known as Parkway I &amp; II (the &#147;Parkway Property&#148;) through Hartman Parkway, LLC (&#147;Parkway LLC&#148;), a wholly owned subsidiary of the Company.</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>Parkway LLC acquired the Parkway Property from Merit 99 Office Portfolio, LP, an unrelated third party seller, for a purchase price of $9,490,000, exclusive of closing costs. &nbsp;Parkway LLC financed the payment of the purchase price for the Parkway Property with (1) proceeds from the Company&#146;s ongoing public offering and (2) loan proceeds drawn under a revolving loan agreement (the &#147;Loan Agreement&#148;) provided by Texas Capital Bank, NA (the &#147;Lender&#148;). &nbsp;The terms of the Loan Agreement are discussed at Item 2.03 below.</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>The Parkway Property was constructed in 1980. &nbsp;The Parkway Property is 68% occupied. &nbsp;Major tenants are Gerdes Henrichson, Ltd. LLP, JP Morgan Chase Bank, RTW Financial Advisors, Inc., McCue Pauley &amp; Associates, P.C., and O&#146;Boyle Properties, Inc.</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>An acquisition fee of approximately $237,000 was earned by Hartman Advisors LLC, the Company&#146;s advisor (the &#147;Advisor&#148;), in connection with the purchase of the Bent Tree Green Property. &nbsp;The acquisition fee is payable to the Advisor pursuant to the terms of the advisory agreement between the Company and the Advisor.</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>The material terms of the agreements regarding the acquisition of the Parkway Property described herein are qualified in their entirety by the agreements attached as Exhibits 10.1 and 10.2 to the Current Report on Form 8-K filed by the Company on February 4, 2013 and are incorporated herein by reference.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b><i>Property Management</i></b></p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>On March 15, 2013, Parkway LLC and Hartman Income REIT Management, Inc. (the &#147;Property Manager&#148;), an affiliate of the Company, entered into a Real Property Management Agreement (the &#147;Management Agreement&#148;), pursuant to which the property manager will manage and be the exclusive leasing agent for the Parkway Property. &nbsp;Pursuant to the terms of the Management Agreement, Parkway LLC will pay the Property Manager a monthly management fee of 5% of the effective gross revenue (as defined in the Management Agreement). &nbsp;Parkway LLC will also pay a leasing fee (as defined in the Management Agreement and subject to the further terms contained therein) in an amount equal to the leasing fees charged by unaffiliated persons rendering comparable services in the same geographic location of the applicable property for new leases and for the renewal of existing leases. &nbsp;The Management Agreement has an initial term of one year and will be automatically extended on an annual basis unless either party gives 30 days prior written notice of its desire to terminate the Management Agreement. &nbsp;Parkway LLC or the Property Manager may terminate the Management Agreement in the event of default by the other party if such default is not cured within ten (10) days after written notice from the other party, provided that if the default cannot be reasonably cured within the ten (10) day period, the cure period shall </p> <p style=MARGIN:0px align=justify><br><br></p> <hr size=1 noshade style="MARGIN-BOTTOM:9px; PADDING-TOP:9px"> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px" align=justify>be reasonably extended provided the party obligated to cure such default endeavors with diligence to do so. &nbsp;Parkway LLC may terminate the Management Agreement at any time upon written notice in the event of the Property Manager&#146;s fraud, gross malfeasance, gross negligence or willful misconduct.</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>The material terms of the Management Agreement described herein are qualified in their entirety by the Management Agreement, a copy of which is attached as Exhibit 10.3 to this Current Report on Form 8-K and incorporated herein by reference.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b>Item 2.03 &nbsp;&nbsp;Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet</b></p> <p style="TEXT-INDENT:48px; MARGIN:0px" align=justify><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arrangement of a Registrant.</b></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b><i>Loan Agreement</i></b></p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>In connection with the acquisition of the Parkway Property, Parkway LLC became a party to a revolving loan agreement dated May 11, 2012 among the Company and its wholly owned subsidiaries; Hartman Bent Tree Green, LLC, Hartman Richardson Heights Properties, LLC (&#147;Richardson Heights LLC&#148;), Hartman Cooper Street Plaza, LLC (&#147;Cooper Street LLC&#148;) and Texas Capital Bank, National Association (as modified and amended the &#147;Loan Agreement&#148;) to provide up to $30.0 million of acquisition and working capital loan proceeds. &nbsp;The borrowing base under the Loan Agreement may be adjusted from time to time subject to the lenders underwriting with respect to real property collateral securing the Loan Agreement. &nbsp;With the addition of the Parkway Property the borrowing base under the Loan Agreement is increased to $22.5 million with $2.0 million reserved for certain redevelopment costs to be incurred for the Richardson Heights Property. &nbsp;The Loan Agreement is secured by the Parkway Property, the Bent Tree Green Property, the Cooper Street Property and the Richardson Heights Property &nbsp;Proceeds of the Loan Agreement were used to partially fund the purchase price of the Parkway Property. &nbsp;As of March 15, 2013, the closing date for the purchase of the Parkway Property, the outstanding principal balance of the Loan Agreement was $18.3 million.</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>The Loan Agreement has a maturity date of May 10, 2015. &nbsp;Interest on the outstanding principal balance of the Loan Agreement accrues at the Loan Rate (as defined in the promissory note given in connection with the Loan Agreement) which is the base rate quoted from time to time by the Lender and designated as its Base Rate plus one percent (1.0%), but never less than five percent (5.0%) per annum. &nbsp;Interest is payable monthly. &nbsp;The Loan Agreement provides for an unused facility fee of one-half of one percent (0.5%) per annum payable quarterly in arrears on the difference between the borrowing base and the outstanding principal borrowed under the Loan Agreement.</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>Each of the Company and its wholly owned subsidiaries Parkway LLC, Bent Tree LLC, Cooper Street LLC and Richardson Heights LLC are borrowers under the Loan Agreement. &nbsp;The Loan Agreement is subject to customary covenants, representations and warranties which must be maintained during the term of the Loan Agreement. &nbsp;The Loan Agreement is secured by deeds of trust; assignment of licenses, permits and contracts; assignment and subordination of the management agreements; and assignment of rents for each of the Parkway Property, the Bent Tree Green Property, the Cooper Street Property and the Richardson Heights Property.</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>In connection with the Loan Agreement, the Company has absolutely, unconditionally and irrevocably guaranteed to the Lender, the full and prompt payment when due of all amounts owing under the Loan Agreement and the loan documents. &nbsp;The covenant guarantor is Allen Hartman.</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>The material terms of the Loan Agreement described herein are qualified in their entirety by the agreement attached as Exhibits 10.1 to this Current Report on Form 8-K and incorporated herein by reference.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b>Item 7.01 &nbsp;&nbsp;Regulation FD Disclosure</b></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><br><br></p> <hr size=1 noshade style="MARGIN-BOTTOM:9px; PADDING-TOP:9px"> <p style="PAGE-BREAK-BEFORE:always; TEXT-INDENT:24px; MARGIN:0px" align=justify>On March 15, 2013, the Company distributed a press release announcing the completion of the acquisition of the Cooper Street Property. &nbsp;The full text of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 7.01</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>The information furnished under Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed &#147;filed&#148; for the purposes of Section 18 of Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px><b>Item 9.01 &nbsp;&nbsp;Financial Statements and Exhibits.</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><b>(a) Financial Statements of Business Acquired.</b></p> <p style="TEXT-INDENT:24px; MARGIN:0px" align=justify>Because it is impractical to provide the required financial statements for the acquisition of the real property described above at the time of this filing, and no financial statements (audited or unaudited) are available at this time, the Company hereby confirms that the required financial statements will be filed as an amendment to this Current Report on Form 8-K no later than 71 days after the deadline for filing this Current Report on Form 8-K.</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><b>(b) Pro Forma Financial Information</b></p> <p style="TEXT-INDENT:24px; MARGIN:0px">See Paragraph (a) above.</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><b>(c) Exhibits.</b></p> <p style=MARGIN:0px><br></p> <table style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr height=0 style=FONT-SIZE:0px> <td width=55> <td width=18> <td width=517 /> </tr><tr> <td width=55 style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px>Exhibit</p></td> <td width=18 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=517 style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px>Description</p></td></tr> <tr> <td width=55 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>10.1</p></td> <td width=18 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=517 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify>Loan Modification Agreement, dated March 15, 2013, by and among Texas Capital Bank, NA and Hartman Parkway, LLC; Hartman Bent Tree Green, LLC; Hartman Richardson Heights Properties, LLC, Hartman Short Term Income Properties XX, Inc., and Hartman Cooper Street Plaza, LLC. </p></td></tr> <tr> <td width=55 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>10.2</p></td> <td width=18 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=517 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify>Promissory Note, dated March 15,2013, by Hartman Parkway, LLC; Hartman Bent Tree Green, LLC; Hartman Richardson Heights Properties, LLC, Hartman Short Term Income Properties XX, Inc., and Hartman Cooper Street Plaza, LLC in favor of Texas Capital Bank, NA</p></td></tr> <tr> <td width=55 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify>10.3</p></td> <td width=18 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=517 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify>Real Property Management Agreement, dated as of March 15, 2013, by and among Hartman Parkway, LLC and Hartman Income REIT Management, Inc.</p></td></tr> <tr> <td width=55 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>99.1</p></td> <td width=18 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=517 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>Press release of Hartman Income REIT, dated March 15, 2013</p></td></tr> <tr> <td width=55 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=18 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td width=517 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td></tr></table> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=center><br></p> <p style=MARGIN:0px align=center><b> <hr> </b> <p /> <p style=MARGIN:0px align=center><br></p> <p style=MARGIN:0px align=center><b>SIGNATURE</b></p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</p> <p style=MARGIN:0px align=justify><br></p> <table width=100% style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr height=0 style=FONT-SIZE:0px> <td> <td> <td /> </tr><tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td colspan=2 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=center>HARTMAN SHORT TERM INCOME PROPERTIES XX, INC. </p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px" align=center>&nbsp;</p></td> <td colspan=2 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=center>(Registrant)</p> <p style=MARGIN:0px align=left>&nbsp;</p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=right>Date: March 21, 2013</p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=right>By:&nbsp;&nbsp;</p></td> <td style="BORDER-BOTTOM:#000000 2px solid; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px>/s/ &nbsp;Louis T. Fox, III</p></td></tr> <tr> <td colspan=2 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>Louis T. Fox, III</p></td></tr> <tr> <td colspan=2 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>Chief Financial Officer</p></td></tr></table> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=center><b><u> <hr> EXHIBIT INDEX</u></b> <p /> <p style=MARGIN:0px align=justify><br></p> <table width=100% style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr height=0 style=FONT-SIZE:0px> <td> <td> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px>Exhibit</p></td> <td style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px>Description</p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>10.1</p></td> <td style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify>Loan Modification Agreement, dated March 15, 2013, by and among Texas Capital Bank, NA and Hartman Parkway, LLC; Hartman Bent Tree Green, LLC; Hartman Richardson Heights Properties, LLC, Hartman Short Term Income Properties XX, Inc., and Hartman Cooper Street Plaza, LLC. </p> <p style=MARGIN:0px align=justify>&nbsp;</p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>10.2</p></td> <td style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify>Promissory Note, dated March 15, 2013, by Hartman Parkway, LLC; Hartman Bent Tree Green, LLC; Hartman Richardson Heights Properties, LLC, Hartman Short Term Income Properties XX, Inc., and Hartman Cooper Street Plaza, LLC in favor of Texas Capital Bank, NA</p> <p style=MARGIN:0px align=justify>&nbsp;</p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify>10.3</p></td> <td style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify>Real Property Management Agreement, dated as of March 15, 2013, by and among Hartman Parkway, LLC and Hartman Income REIT Management, Inc.</p> <p style=MARGIN:0px align=justify>&nbsp;</p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>99.1</p></td> <td style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>Press release of Hartman Income REIT, dated March 15, 2013</p></td></tr></table> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br><br></p></body>
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Hartman XX Form 8K - Parkway Plaza
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 Or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
March 21, 2013
HARTMAN SHORT TERM INCOME PROPERTIES XX, INC..
(Exact name of registrant as specified in charter)
Maryland
333-154750
26-3455189
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
2909 Hillcroft, Suite 420, Houston, Texas
77057
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(713) 467-2222
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule #14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01   Entry into a Material Definitive Agreement.
Property Acquisition
The information set forth under Items 2.01 and 2.03 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 1.01
Item 2.01   Completion of Acquisition of Disposition of Assets.
On March 15, 2013, Hartman Short Term Income Properties XX, Inc. (the "Company") acquired a fee simple interest in two office buildings comprising approximately 136,506 square feet located in Dallas, Texas commonly known as Parkway I & II (the "Parkway Property") through Hartman Parkway, LLC ("Parkway LLC"), a wholly owned subsidiary of the Company.
Parkway LLC acquired the Parkway Property from Merit 99 Office Portfolio, LP, an unrelated third party seller, for a purchase price of $9,490,000, exclusive of closing costs.  Parkway LLC financed the payment of the purchase price for the Parkway Property with (1) proceeds from the Company's ongoing public offering and (2) loan proceeds drawn under a revolving loan agreement (the "Loan Agreement") provided by Texas Capital Bank, NA (the "Lender").  The terms of the Loan Agreement are discussed at Item 2.03 below.
The Parkway Property was constructed in 1980.  The Parkway Property is 68% occupied.  Major tenants are Gerdes Henrichson, Ltd. LLP, JP Morgan Chase Bank, RTW Financial Advisors, Inc., McCue Pauley & Associates, P.C., and O'Boyle Properties, Inc.
An acquisition fee of approximately $237,000 was earned by Hartman Advisors LLC, the Company's advisor (the "Advisor"), in connection with the purchase of the Bent Tree Green Property.  The acquisition fee is payable to the Advisor pursuant to the terms of the advisory agreement between the Company and the Advisor.
The material terms of the agreements regarding the acquisition of the Parkway Property described herein are qualified in their entirety by the agreements attached as Exhibits 10.1 and 10.2 to the Current Report on Form 8-K filed by the Company on February 4, 2013 and are incorporated herein by reference.
Property Management
On March 15, 2013, Parkway LLC and Hartman Income REIT Management, Inc. (the "Property Manager"), an affiliate of the Company, entered into a Real Property Management Agreement (the "Management Agreement"), pursuant to which the property manager will manage and be the exclusive leasing agent for the Parkway Property.  Pursuant to the terms of the Management Agreement, Parkway LLC will pay the Property Manager a monthly management fee of 5% of the effective gross revenue (as defined in the Management Agreement).  Parkway LLC will also pay a leasing fee (as defined in the Management Agreement and subject to the further terms contained therein) in an amount equal to the leasing fees charged by unaffiliated persons rendering comparable services in the same geographic location of the applicable property for new leases and for the renewal of existing leases.  The Management Agreement has an initial term of one year and will be automatically extended on an annual basis unless either party gives 30 days prior written notice of its desire to terminate the Management Agreement.  Parkway LLC or the Property Manager may terminate the Management Agreement in the event of default by the other party if such default is not cured within ten (10) days after written notice from the other party, provided that if the default cannot be reasonably cured within the ten (10) day period, the cure period shall
be reasonably extended provided the party obligated to cure such default endeavors with diligence to do so.  Parkway LLC may terminate the Management Agreement at any time upon written notice in the event of the Property Manager's fraud, gross malfeasance, gross negligence or willful misconduct.
The material terms of the Management Agreement described herein are qualified in their entirety by the Management Agreement, a copy of which is attached as Exhibit 10.3 to this Current Report on Form 8-K and incorporated herein by reference.
Item 2.03   Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant.
Loan Agreement
In connection with the acquisition of the Parkway Property, Parkway LLC became a party to a revolving loan agreement dated May 11, 2012 among the Company and its wholly owned subsidiaries; Hartman Bent Tree Green, LLC, Hartman Richardson Heights Properties, LLC ("Richardson Heights LLC"), Hartman Cooper Street Plaza, LLC ("Cooper Street LLC") and Texas Capital Bank, National Association (as modified and amended the "Loan Agreement") to provide up to $30.0 million of acquisition and working capital loan proceeds.  The borrowing base under the Loan Agreement may be adjusted from time to time subject to the lenders underwriting with respect to real property collateral securing the Loan Agreement.  With the addition of the Parkway Property the borrowing base under the Loan Agreement is increased to $22.5 million with $2.0 million reserved for certain redevelopment costs to be incurred for the Richardson Heights Property.  The Loan Agreement is secured by the Parkway Property, the Bent Tree Green Property, the Cooper Street Property and the Richardson Heights Property  Proceeds of the Loan Agreement were used to partially fund the purchase price of the Parkway Property.  As of March 15, 2013, the closing date for the purchase of the Parkway Property, the outstanding principal balance of the Loan Agreement was $18.3 million.
The Loan Agreement has a maturity date of May 10, 2015.  Interest on the outstanding principal balance of the Loan Agreement accrues at the Loan Rate (as defined in the promissory note given in connection with the Loan Agreement) which is the base rate quoted from time to time by the Lender and designated as its Base Rate plus one percent (1.0%), but never less than five percent (5.0%) per annum.  Interest is payable monthly.  The Loan Agreement provides for an unused facility fee of one-half of one percent (0.5%) per annum payable quarterly in arrears on the difference between the borrowing base and the outstanding principal borrowed under the Loan Agreement.
Each of the Company and its wholly owned subsidiaries Parkway LLC, Bent Tree LLC, Cooper Street LLC and Richardson Heights LLC are borrowers under the Loan Agreement.  The Loan Agreement is subject to customary covenants, representations and warranties which must be maintained during the term of the Loan Agreement.  The Loan Agreement is secured by deeds of trust; assignment of licenses, permits and contracts; assignment and subordination of the management agreements; and assignment of rents for each of the Parkway Property, the Bent Tree Green Property, the Cooper Street Property and the Richardson Heights Property.
In connection with the Loan Agreement, the Company has absolutely, unconditionally and irrevocably guaranteed to the Lender, the full and prompt payment when due of all amounts owing under the Loan Agreement and the loan documents.  The covenant guarantor is Allen Hartman.
The material terms of the Loan Agreement described herein are qualified in their entirety by the agreement attached as Exhibits 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 7.01   Regulation FD Disclosure
On March 15, 2013, the Company distributed a press release announcing the completion of the acquisition of the Cooper Street Property.  The full text of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 7.01
The information furnished under Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for the purposes of Section 18 of Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
Item 9.01   Financial Statements and Exhibits.
(a) Financial Statements of Business Acquired.
Because it is impractical to provide the required financial statements for the acquisition of the real property described above at the time of this filing, and no financial statements (audited or unaudited) are available at this time, the Company hereby confirms that the required financial statements will be filed as an amendment to this Current Report on Form 8-K no later than 71 days after the deadline for filing this Current Report on Form 8-K.
(b) Pro Forma Financial Information
See Paragraph (a) above.
(c) Exhibits.
Exhibit
Description
10.1
Loan Modification Agreement, dated March 15, 2013, by and among Texas Capital Bank, NA and Hartman Parkway, LLC; Hartman Bent Tree Green, LLC; Hartman Richardson Heights Properties, LLC, Hartman Short Term Income Properties XX, Inc., and Hartman Cooper Street Plaza, LLC.
10.2
Promissory Note, dated March 15,2013, by Hartman Parkway, LLC; Hartman Bent Tree Green, LLC; Hartman Richardson Heights Properties, LLC, Hartman Short Term Income Properties XX, Inc., and Hartman Cooper Street Plaza, LLC in favor of Texas Capital Bank, NA
10.3
Real Property Management Agreement, dated as of March 15, 2013, by and among Hartman Parkway, LLC and Hartman Income REIT Management, Inc.
99.1
Press release of Hartman Income REIT, dated March 15, 2013
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
HARTMAN SHORT TERM INCOME PROPERTIES XX, INC.
(Registrant)
Date: March 21, 2013
By:
/s/  Louis T. Fox, III
Louis T. Fox, III
Chief Financial Officer
EXHIBIT INDEX
Exhibit
Description
10.1
Loan Modification Agreement, dated March 15, 2013, by and among Texas Capital Bank, NA and Hartman Parkway, LLC; Hartman Bent Tree Green, LLC; Hartman Richardson Heights Properties, LLC, Hartman Short Term Income Properties XX, Inc., and Hartman Cooper Street Plaza, LLC.
10.2
Promissory Note, dated March 15, 2013, by Hartman Parkway, LLC; Hartman Bent Tree Green, LLC; Hartman Richardson Heights Properties, LLC, Hartman Short Term Income Properties XX, Inc., and Hartman Cooper Street Plaza, LLC in favor of Texas Capital Bank, NA
10.3
Real Property Management Agreement, dated as of March 15, 2013, by and among Hartman Parkway, LLC and Hartman Income REIT Management, Inc.
99.1
Press release of Hartman Income REIT, dated March 15, 2013