Note 4 - Real Estate Assets

12 Months Ended

Dec. 31, 2022

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 triple-net leased model home properties.  We have five commercial properties located in Colorado, four in North Dakota, one in Southern California, one in Texas and one in Maryland. Our model home properties are located in three states. As of December 31, 2022, the Company owned or had an equity interest in:

• Eight office buildings and one industrial building (“Office/Industrial Properties”) which total approximately rentable 756,265 square feet;

• Three retail shopping centers (“Retail Properties”) which total approximately 65,242 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 five affiliated limited partnerships and one wholly-owned corporation.

A summary of the properties owned by the Company as of December 31, 2022 and 2021 is as follows:

	Date		Real estate assets, net
Property Name	Acquired	Location	December 31, 2022		December 31, 2021
World Plaza (1)	September 2007	San Bernardino, CA	$	—	$	9,272,213
Genesis Plaza (2)	August 2010	San Diego, CA		7,995,980		8,310,803
Dakota Center	May 2011	Fargo, ND		8,569,537		8,607,360
Grand Pacific Center (6)	March 2014	Bismarck, ND		5,228,006		5,457,447
Arapahoe Center	December 2014	Centennial, CO		8,664,604		8,821,278
Union Town Center	December 2014	Colorado Springs, CO		9,039,039		9,169,387
West Fargo Industrial	August 2015	Fargo, ND		6,893,292		7,025,325
300 N.P.	August 2015	Fargo, ND		2,899,694		2,929,563
Research Parkway	August 2015	Colorado Springs, CO		2,319,588		2,375,943
One Park Center	August 2015	Westminster, CO		7,991,809		7,992,420
Shea Center II (5)	December 2015	Highlands Ranch, CO		19,501,998		20,246,645
Mandolin (3)	August 2021	Houston, TX		4,783,985		4,875,696
Baltimore	December 2021	Baltimore, MD		8,690,874		8,891,810
Presidio Property Trust, Inc. properties				92,578,406		103,975,890
Model Home properties (4)	2017 - 2022	FL, TX, WI		37,933,824		34,089,046
Total real estate assets and lease intangibles, net			$	130,512,230	$	138,064,936

(1)	This property was sold during the year ended December 31, 2022.
(2)	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.
(3)	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.
(4)	Includes six Model Homes listed as held for sale as of December 31, 2022.
(5)	On December 31, 2022, the lease for our largest tenant, Halliburton Energy Services, Inc., expired.  Halliburton Energy Services, Inc. was located in our Shea Center II property in Colorado, and made up approximately 8.57% of our annual base rent.  The tenant did not renew the lease and we placed approximately $1.1 million in a reserve account with our lender to cover future mortgage payments, if necessary.  Our management team is working to fill the 45,535 square foot space as quickly as possible, and has already leased approximately 20% of the space to a tenant during  January 2023.
(6)	Grand Pacific Center, Bismarck, ND, was removed from held for sale after signing a major lease with KLJ Engineering on December 7, 2022 for approximately 33,296 usable square feet, a term of 122 months, starting annualized rent of $532,736, and a commencement date estimated to be between November 1, 2023 and March 1, 2024.