Real Estate Owned

12 Months Ended

Dec. 31, 2021

Note 5 - Real Estate Owned

The following table summarizes the Company's real estate owned assets as of December 31, 2021 (dollars in thousands):


As of December 31, 2021
Acquisition Date	Property Type	Primary Location(s)	Land		Building and Improvements		Furniture, Fixtures and Equipment		Accumulated Depreciation		Real Estate Owned, net
September 2021 (1)	Industrial	Jeffersonville, GA	$	3,436	$	84,259	$	2,928	$	(575)	$	90,048
			$	3,436	$	84,259	$	2,928	$	(575)	$	90,048

________________________

(1) Refer to Note 2 for the useful life of the above asset.

The following table summarizes the Company's real estate owned assets as of December 31, 2020 (dollars in thousands):


As of December 31, 2020
Acquisition Date	Property Type	Primary Location(s)	Land		Building and Improvements		Furniture, Fixtures and Equipment		Accumulated Depreciation		Real Estate Owned, net
October 2019 (1)	Office	Jeffersonville, IN	$	1,887	$	21,989	$	3,565	$	(931)	$	26,510
			$	1,887	$	21,989	$	3,565	$	(931)	$	26,510

________________________

(1) Refer to Note 2 for the useful life of the above asset.

Depreciation expense for the years ended December 31, 2021 and 2020 totaled $1.0 million.

During the year ended December 31, 2021, the Company sold the real estate owned asset in Jeffersonville, IN to a third party, resulting in a $8.6 million gain recognized within Realized gain/loss on sale of real estate owned assets, held for sale in the consolidated statements of operations.

In August 2021 the Company and an investment fund managed by the Advisor entered into a joint venture agreement and formed a joint venture entity, Jeffersonville Member, LLC (the "Jeffersonville JV") to acquire a $139.5 million triple net lease property in Jeffersonville, GA. The Company has a 79% interest in the Jeffersonville JV, while the affiliated fund has a 21% interest. The Company invested a total of $109.8 million, made up of $88.7 million in debt and $21.1 million in equity, representing 79% of the ownership interest in the Jeffersonville JV. The affiliated fund made up the remaining $29.8 million composed of a $24.0 million mortgage note payable and $5.7 million in equity. The Company has control of Jeffersonville JV with 79% ownership and, therefore, consolidates Jeffersonville JV on its consolidated balance sheet. The Company's $88.7 million mortgage note payable to Jeffersonville JV is eliminated in consolidation (see Note 7 - Debt).