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REAL ESTATE INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2018
Real Estate [Abstract]  
Schedule of Real Estate Properties
The following table provides summary information regarding the Company’s real estate portfolio as of December 31, 2018:
Property
 
Location
 
Acquisition
Date
 
Property
Type
 
Land,
Buildings and
Improvements
 
Tenant
Origination
and Absorption
Costs
 
Accumulated
Depreciation
and
Amortization
 
Total
Investment in
Real Estate
Property, Net
Accredo
 
Orlando, FL
 
6/15/2016
 
Office
 
$
9,855,847

 
$
1,053,637

 
$
(1,265,678
)
 
$
9,643,806

Walgreens
 
Stockbridge, GA
 
6/21/2016
 
Retail
 
4,147,948

 
705,423

 
(833,561
)
 
4,019,810

Dollar General
 
Litchfield, ME
 
11/4/2016
 
Retail
 
1,281,812

 
116,302

 
(85,518
)
 
1,312,596

Dollar General
 
Wilton, ME
 
11/4/2016
 
Retail
 
1,543,776

 
140,653

 
(109,445
)
 
1,574,984

Dollar General
 
Thompsontown, PA
 
11/4/2016
 
Retail
 
1,199,860

 
106,730

 
(82,167
)
 
1,224,423

Dollar General
 
Mt. Gilead, OH
 
11/4/2016
 
Retail
 
1,174,188

 
111,847

 
(78,780
)
 
1,207,255

Dollar General
 
Lakeside, OH
 
11/4/2016
 
Retail
 
1,112,872

 
100,857

 
(80,853
)
 
1,132,876

Dollar General
 
Castalia, OH
 
11/4/2016
 
Retail
 
1,102,086

 
86,408

 
(78,557
)
 
1,109,937

Dana
 
Cedar Park, TX
 
12/27/2016
 
Industrial
 
8,392,906

 
1,210,874

 
(1,001,594
)
 
8,602,186

Northrop Grumman
 
Melbourne, FL
 
3/7/2017
 
Office
 
12,382,991

 
1,341,199

 
(1,402,927
)
 
12,321,263

exp US Services
 
Maitland, FL
 
3/27/2017
 
Office
 
5,920,121

 
388,248

 
(389,042
)
 
5,919,327

Harley
 
Bedford, TX
 
4/13/2017
 
Retail
 
13,178,288

 
—

 
(562,523
)
 
12,615,765

Wyndham
 
Summerlin, NV
 
6/22/2017
 
Office
 
10,406,483

 
669,232

 
(461,240
)
 
10,614,475

Williams Sonoma
 
Summerlin, NV
 
6/22/2017
 
Office
 
8,079,612

 
550,486

 
(435,346
)
 
8,194,752

Omnicare
 
Richmond, VA
 
7/20/2017
 
Industrial
 
7,262,747

 
281,442

 
(343,275
)
 
7,200,914

EMCOR
 
Cincinnati, OH
 
8/29/2017
 
Office
 
5,960,610

 
463,488

 
(245,453
)
 
6,178,645

Husqvarna
 
Charlotte, NC
 
11/30/2017
 
Industrial
 
11,840,200

 
1,013,948

 
(399,615
)
 
12,454,533

AvAir
 
Chandler, AZ
 
12/28/2017
 
Industrial
 
27,357,900

 
—

 
(722,991
)
 
26,634,909

3M
 
DeKalb, IL
 
3/29/2018
 
Industrial
 
14,762,819

 
2,356,361

 
(985,899
)
 
16,133,281

Cummins
 
Nashville, TN
 
4/4/2018
 
Office
 
14,465,491

 
1,536,998

 
(562,814
)
 
15,439,675

Northrop Grumman Parcel
 
Melbourne, FL
 
6/21/2018
 
Land
 
329,410

 
—

 
—

 
329,410

24 Hour Fitness
 
Las Vegas, NV
 
7/27/2018
 
Retail
 
11,453,337

 
1,204,973

 
(204,887
)
 
12,453,423

Texas Health
 
Dallas, TX
 
9/13/2018
 
Office
 
6,976,703

 
713,221

 
(86,716
)
 
7,603,208

Bon Secours
 
Richmond, VA
 
10/31/2018
 
Office
 
10,042,551

 
800,356

 
(90,731
)
 
10,752,176

Costco
 
Issaquah, WA
 
12/20/2018
 
Retail
 
27,263,632

 
2,765,136

 
(54,052
)
 
29,974,716

 
 
 
 
 
 
 
 
$
217,494,190

 
$
17,717,819

 
$
(10,563,664
)
 
$
224,648,345
Property Acquisitions
During the year ended December 31, 2018, the Company acquired the following properties:
Property
 
Land
 
Buildings and
Improvements
 
Tenant
Origination
and Absorption
Costs
 
Above-Market Lease Intangibles
 
Below-Market Lease Intangibles
 
Total
3M
 
$
758,780

 
$
14,004,039

 
$
2,356,361

 
$
—

 
$
(1,417,483
)
 
$
15,701,697

Cummins
 
3,347,959

 
11,117,531

 
1,536,998

 
—

 
—

 
16,002,488

Northrop Grumman Parcel
 
329,410

 
—

 
—

 
—

 
—

 
329,410

24 Hour Fitness
 
3,121,985

 
8,331,352

 
1,204,974

 
—

 
—

 
12,658,311

Texas Health
 
1,827,914

 
5,148,789

 
713,221

 
—

 
—

 
7,689,924

Bon Secours
 
1,658,659

 
8,383,892

 
800,356

 
—

 
—

 
10,842,907

Costco
 
8,202,915

 
19,060,717

 
2,765,136

 
—

 
—

 
30,028,768

 
 
$
19,247,622

 
$
66,046,320

 
$
9,377,046

 
$
—

 
$
(1,417,483
)
 
$
93,253,505

During the year ended December 31, 2017, the Company acquired the following properties.
Property
 
Land
 
Buildings and
Improvements
 
Tenant
Origination
and Absorption
Costs
 
Above-Market Lease Intangibles
 
Below-Market Lease Intangibles
 
Total
Northrop Grumman
 
$
1,191,024

 
$
11,191,967

 
$
1,341,199

 
$
—

 
$
—

 
$
13,724,190

exp US Services
 
785,801

 
5,134,320

 
388,248

 
616,486

 
—

 
6,924,855

Harley
 
1,145,196

 
12,033,092

 
—

 
—

 
—

 
13,178,288

Wyndham
 
4,144,069

 
5,303,201

 
669,232

 
—

 
—

 
10,116,502

Williams Sonoma
 
3,546,744

 
3,478,337

 
550,486

 
—

 
(364,555
)
 
7,211,012

Omnicare
 
800,772

 
6,242,156

 
281,442

 
—

 
—

 
7,324,370

EMCOR
 
427,589

 
5,533,021

 
463,488

 
—

 
(285,562
)
 
6,138,536

Husqvarna
 
974,663

 
10,866,481

 
1,013,948

 
—

 
(852,044
)
 
12,003,048

AvAir
 
3,493,673

 
23,859,451

 
—

 
—

 
—

 
27,353,124

 
 
$
16,509,531

 
$
83,642,026

 
$
4,708,043

 
$
616,486

 
$
(1,502,161
)
 
$
103,973,925
Property Purchase Price
Purchase price and other acquisition costs
$
103,973,925

Purchase deposits applied
(500,000
)
Acquisition fees to affiliate
(3,015,057
)
Acquisition of real estate before financing
$
100,458,868

Purchase price and other acquisition costs
$
93,253,505

Acquisition fees to affiliate
(2,702,043
)
Acquisition of real estate before financing
$
90,551,462
Lease Expiration Dates
The noncancellable lease terms of the properties acquired during the year ended December 31, 2017 are as follows:
Property
 
Lease Expiration
Northrop Grumman
 
5/31/2021
exp US Services
 
11/30/2026
Harley
 
4/12/2032
Wyndham
 
2/28/2025
Williams Sonoma
 
10/31/2022
Omnicare
 
5/31/2026
EMCOR
 
2/28/2027
Husqvarna
 
6/30/2027(1)
AvAir
 
12/31/2032
(1)
The tenant’s right to cancel lease on June 30, 2025 was not determined to be probable for financial accounting purposes.
The noncancellable lease terms of the properties acquired during the year ended December 31, 2018 are as follows:
Property
 
Lease Expiration
 
3M
 
7/31/2022
 
Cummins
 
2/28/2023
 
24 Hour Fitness
 
3/31/2030
 
Texas Health
 
12/31/2025
 
Bon Secours
 
8/31/2026
 
Costco
 
7/31/2025
(1)
(1)
The tenant’s right to cancel the lease on July 31, 2023 was not determined to be probable for financial accounting purposes.
Portfolios Asset Concentration
Asset Concentration
The Company’s portfolio asset concentration as of December 31 was as follows (greater than 10% of total assets):
 
 
2018
 
2017
Property and Location
 
Net Carrying Value
 
Percentage of Total Assets
 
Net Carrying Value
 
Percentage of
Total Assets
AvAir, Chandler, AZ
 
$
26,634,909

 
10.6%
 
$
27,353,125

 
17.4%
Costco, Issaquah, WA
 
$
29,974,716

 
11.9%
 
$
—

 
—
Revenue Concentration
The Company’s revenue concentration based on tenants representing greater than 10% of total revenues for the years ended December 31, 2018 and 2017 are as follows:
 
 
2018
 
2017
Property and Location
 
Revenue
 
Percentage of
Total Revenue
 
Revenue
 
Percentage of
Total Revenue
AvAir, Chandler, AZ
 
$
2,670,159

 
14.8%
 
$
2,100,000

 
19.9%
Northrop Grumman, Melbourne, FL
 
$
—

 
—
 
$
1,162,274

 
11.0%
Rental Payments for Operating Leases
As of December 31, 2018, the future minimum contractual rent payments due under the Company’s operating leases, excluding any renewal periods, are as follows:
2019
$
17,588,378

2020
17,834,035

2021
16,752,518

2022
15,520,338

2023
13,317,933

Thereafter
59,183,690

 
$
140,196,892
Finite-Lived Intangible Assets
As of December 31, 2018 and 2017, the Company’s intangible assets were as follows:
 
2018
 
2017
 
Tenant
Origination
and
Absorption
Costs
 
Above-Market
Lease Intangibles
 
Below-Market
Lease Intangibles
 
Tenant
Origination
and
Absorption
Costs
 
Above-Market
Lease Intangibles
 
Below-Market
Lease Intangibles
Cost
$
17,717,819

 
$
783,115

 
$
(3,071,253
)
 
$
8,340,774

 
$
783,115

 
$
(1,653,771
)
Accumulated amortization
(3,173,254
)
 
(198,867
)
 
475,871

 
(1,192,318
)
 
(101,822
)
 
69,542

Net amount
$
14,544,565

 
$
584,248

 
$
(2,595,382
)
 
$
7,148,456

 
$
681,293

 
$
(1,584,229
)
Finite-Lived Intangible Assets, Future Amortization
As of December 31, 2018, amortization of intangible assets over the next five years is expected to be as follows:
 
Tenant
Origination and
Absorption Costs
 
Above-Market Lease Intangibles
 
Below-Market Lease Intangibles
2019
$
2,792,209

 
$
97,045

 
$
474,391

2020
2,792,209

 
97,045

 
474,391

2021
2,375,950

 
78,994

 
474,391

2022
1,839,880

 
63,720

 
306,829

2023
1,214,116

 
63,719

 
78,370

Thereafter
3,530,201

 
183,725

 
787,010

 
$
14,544,565

 
$
584,248

 
$
2,595,382

Weighted-Average Remaining Amortization Period
7.2 years

 
7.2 years

 
9.8 years
ScheduleOfCapitalizedPropertiesAcquisition [Table Text Block]
Capitalized acquisition fees paid to the Advisor for properties acquired during the year ended December 31, 2018 are as follows:
Property
 
Amount
 
3M
 
$
456,000

 
Cummins
 
465,000

 
Northrop Grumman Parcel
 
9,000

 
24 Hour Fitness
 
366,000

 
Texas Health
 
222,750

 
Bon Secours
 
313,293

 
Costco
 
870,000

 
Total
 
$
2,702,043

 
Capitalized acquisition fees paid to the Advisor for properties acquired during the year ended December 31, 2017 are as follows:
Property
 
 
 
Northrop Grumman
 
$
398,100

 
exp US Services
 
200,837

 
Harley
 
382,500

 
Wyndham
 
292,970

 
Williams Sonoma
 
209,165

 
Omnicare
 
211,275

 
EMCOR
 
177,210

 
Husqvarna 
 
348,000

 
AvAir
 
795,000

 
Total
 
$
3,015,057