Note 4 - Real Estate Assets

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Real Estate Assets [Text Block]

4.  REAL ESTATE ASSETS

The Company owns a diverse portfolio of real estate assets. The primary types of properties the Company invests in are office, industrial, retail, and NNN leased model home properties located primarily in Southern California and Colorado, with four properties located in North Dakota. Our model home properties are located in four states. As of December 31, 2021, the Company owned or had an equity interest in:

• Eight office buildings and one industrial buildings (“Office/Industrial Properties”) which total approximately rentable 757,578 square feet;

• Four retail shopping centers (“Retail Properties”) which total approximately 121,052 rentable square feet;

• 92 homes owned by our affiliated limited partnerships and one corporation (“Model Homes” or “Model Home Properties”) leased back on a triple-net basis to homebuilders that are owned by six affiliated limited partnerships and one wholly-owned corporation.

The Company’s real estate assets consisted of the following as of December 31, 2021 and 2020:

	Date			Real estate assets, net
Property Name	Acquired		Location	2021		2020
Garden Gateway Plaza (1)	March 2007		Colorado Springs, CO	$	—	$	11,464,531
World Plaza (2)	September 2007		San Bernardino, CA		9,272,213		9,272,213
Executive Office Park (1)	July 2008		Colorado Springs, CO		—		5,105,831
Waterman Plaza (1)	August 2008		San Bernardino, CA		—		3,500,002
Genesis Plaza (3)	August 2010		San Diego, CA		8,310,803		8,651,177
Dakota Center	May 2011		Fargo, ND		8,607,360		8,597,493
Grand Pacific Center (6)	March 2014		Bismarck, ND		5,457,447		5,683,823
Arapahoe Center	December 2014		Centennial, CO		8,821,278		9,233,078
Union Town Center	December 2014		Colorado Springs, CO		9,169,387		9,344,563
West Fargo Industrial	August 2015		Fargo, ND		7,025,325		7,061,122
300 N.P.	August 2015		Fargo, ND		2,929,563		3,279,522
Research Parkway	August 2015		Colorado Springs, CO		2,375,943		2,438,594
One Park Center	August 2015		Westminster, CO		7,992,420		8,586,309
Highland Court (1)(4)	August 2015		Centennial, CO		—		10,500,001
Shea Center II	December 2015		Highlands Ranch, CO		20,246,645		21,026,112
Mandolin (4)	August 2021		Houston, TX		4,875,696		—
Baltimore	December 2021		Baltimore, MD		8,891,810		—
Presidio Property Trust, Inc. properties					103,975,890		123,744,371
Model Home properties (5)		2014 - 2021	AZ, FL, IL, PA, TX, WI		34,089,046		42,509,596
Total real estate assets and lease intangibles, net				$	138,064,936	$	166,253,967

(1)	This property was sold during the year ended December 31, 2021.
(2)	This property is held for sale as of December 31, 2021.
(3)	Genesis Plaza is owned by two tenants-in-common, each of which own 57% and 43%, respectively, and we beneficially own an aggregate of 76.4%, based on our ownership percentages of each tenant-in-common.
(4)	A portion of the proceeds from the sale of Highland Court were used in like-kind exchange transactions pursued under Section 1031 of the Code for the acquisition of our Mandolin property. Mandolin is owned by NetREIT Palm Self-Storage LP, through its wholly owned subsidiary NetREIT Highland LLC, and the Company is the sole general partner and owns 61.3% of NetREIT Palm Self-Storage LP.
(5)	Includes six Model Homes listed as held for sale as of December 31, 2021.
(6)	Property was listed as held for sale in February 2022.

The Company’s commercial properties are leased to tenants under non-cancelable operating leases for which terms and expirations vary.  Future minimum rental revenues under existing leases on Office/Industrial and Retail Properties as of December 31, 2021 are expected to be as follows:

2022	$	3,362,188
2023		1,990,408
2024		1,136,825
2025		1,210,653
2026		2,218,671
Thereafter		1,540,799
Totals	$	11,459,544

The Company generally rents Model Home Properties to homebuilders under non-cancelable lease agreements with a term of 18 months with an option to extend in six months increments. Future minimum rental revenues under existing leases on Model Home Properties as of December 31, 2021 are expected to be as follows:

2022	$	2,121,864
2023		540,504
	$	2,662,368