REAL ESTATE INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2020

The following table provides summary information regarding the Company’s real estate portfolio as of December 31, 2020:


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 Health	Orlando, FL	6/15/2016	Office	$	9,855,847	$	1,269,351	$	(2,221,380)	$	8,903,818
Dollar General	Litchfield, ME	11/4/2016	Retail	1,281,812		116,302		(166,006)		1,232,108
Dollar General	Wilton, ME	11/4/2016	Retail	1,543,776		140,653		(212,451)		1,471,978
Dollar General	Thompsontown, PA	11/4/2016	Retail	1,199,860		106,730		(159,501)		1,147,089
Dollar General	Mt. Gilead, OH	11/4/2016	Retail	1,174,188		111,847		(152,925)		1,133,110
Dollar General	Lakeside, OH	11/4/2016	Retail	1,112,872		100,857		(156,949)		1,056,780
Dollar General	Castalia, OH	11/4/2016	Retail	1,102,086		86,408		(152,492)		1,036,002
Dana	Cedar Park, TX	12/27/2016	Industrial	6,802,876		531,439		(1,835,800)		5,498,515
Northrop Grumman	Melbourne, FL	3/7/2017	Office	12,382,991		1,341,199		(2,968,985)		10,755,205
exp US Services	Maitland, FL	3/27/2017	Office	6,056,668		388,248		(833,278)		5,611,638
Wyndham	Summerlin, NV	6/22/2017	Office	10,406,483		669,232		(1,170,222)		9,905,493
Williams Sonoma	Summerlin, NV	6/22/2017	Office	8,079,612		550,486		(1,058,455)		7,571,643
Omnicare	Richmond, VA	7/20/2017	Industrial	7,262,747		281,442		(832,474)		6,711,715
EMCOR	Cincinnati, OH	8/29/2017	Office	5,960,610		463,488		(604,163)		5,819,935
Husqvarna	Charlotte, NC	11/30/2017	Industrial	11,840,200		1,013,948		(1,113,651)		11,740,497
AvAir	Chandler, AZ	12/28/2017	Industrial	27,357,900		—		(2,111,134)		25,246,766
3M	DeKalb, IL	3/29/2018	Industrial	14,762,819		2,356,361		(3,476,588)		13,642,592
Cummins	Nashville, TN	4/4/2018	Office	14,465,491		1,536,998		(2,151,938)		13,850,551
Northrop Grumman Parcel	Melbourne, FL	6/21/2018	Land	329,410		—		—		329,410
Texas Health	Dallas, TX	9/13/2018	Office	6,976,703		713,221		(681,341)		7,008,583
Bon Secours	Richmond, VA	10/31/2018	Office	10,388,751		800,356		(978,335)		10,210,772
Costco	Issaquah, WA	12/20/2018	Office	27,330,797		2,765,136		(2,654,329)		27,441,604
Taylor Fresh Foods	Yuma, AZ	10/24/2019	Industrial	34,194,369		2,894,017		(1,597,022)		35,491,364
Levins	Sacramento, CA	12/31/2019	Industrial	4,429,390		221,927		(220,609)		4,430,708
Dollar General	Bakersfield, CA	12/31/2019	Retail	4,899,714		261,630		(147,132)		5,014,212
PMI Preclinical	San Carlos, CA	12/31/2019	Industrial	9,672,174		408,225		(204,321)		9,876,078
GSA (MSHA)	Vacaville, CA	12/31/2019	Office	3,112,076		243,307		(138,515)		3,216,868
PreK Education	San Antonio, TX	12/31/2019	Retail	12,447,287		447,927		(599,428)		12,295,786
Dollar Tree	Morrow, GA	12/31/2019	Retail	1,320,367		73,298		(70,911)		1,322,754
Solar Turbines	San Diego, CA	12/31/2019	Office	7,133,241		284,026		(338,232)		7,079,035
Wood Group	San Diego, CA	12/31/2019	Industrial	9,731,220		466,293		(565,017)		9,632,496
ITW Rippey	El Dorado Hills, CA	12/31/2019	Industrial	7,071,143		304,387		(303,219)		7,072,311
Dollar General	Big Spring, TX	12/31/2019	Retail	1,281,683		76,351		(50,969)		1,307,065
Gap	Rocklin, CA	12/31/2019	Office	8,378,276		360,377		(479,306)		8,259,347
L-3 Communications	Carlsbad, CA	12/31/2019	Industrial	11,631,857		454,035		(470,823)		11,615,069
Sutter Health	Rancho Cordova, CA	12/31/2019	Office	29,555,055		1,616,610		(1,080,349)		30,091,316
Walgreens	Santa Maria, CA	12/31/2019	Retail	5,223,442		335,945		(132,961)		5,426,426
				$	337,755,793	$	23,792,057	$	(32,091,211)	$	329,456,639

The details of the Company's real estate impairment charges for the year ended December 31, 2020 were as follows:

Year Ended

Property

Location

December 31, 2020

Dana

Cedar Park, TX

2,184,395

24 Hour Fitness

Las Vegas, NV

5,664,517

Dinan Cars

Morgan Hill, CA

1,308,156

Rite Aid

Lake Elsinore, CA

349,457

Harley Davidson

Bedford, TX

632,233

Chevron Gas Station

San Jose, CA

128,867

10,267,625

Property Acquisitions

During the year ended December 31, 2019, the Company acquired the following real estate properties:


Property	Land		Buildings and Improvements		Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles		Total
REIT I Property Portfolio:
Chevron Gas Station, San Jose	$	3,787,021	$	267,738	$	145,577	$	41,739	$	—	$	4,242,075
Levins	1,404,863		3,024,527		221,927		26,469		—		4,677,786
Chevron Gas Station, Roseville	2,636,663		1,011,908		136,415		24,432		—		3,809,418
Island Pacific Supermarket	676,981		1,883,330		197,495		—		(76,351)		2,681,455
Dollar General, Bakersfield	1,099,458		3,800,256		261,630		—		(41,739)		5,119,605
Rite Aid	3,939,724		2,902,365		420,441		186,297		—		7,448,827
PMI Preclinical	4,774,497		4,897,677		408,225		115,036		—		10,195,435
EcoThrift	2,300,717		3,249,509		273,846		—		(388,882)		5,435,190
GSA (MSHA)	399,062		2,713,014		243,307		—		(101,802)		3,253,581
PreK San Antonio	963,044		11,484,243		447,927		—		(28,504)		12,866,710
Dollar Tree	159,829		1,160,538		73,298		10,180		—		1,403,845
Dinan Cars	2,453,420		3,799,237		—		—		—		6,252,657
Solar Turbines	2,483,960		4,649,281		284,026		—		(108,928)		7,308,339
Wood Group	3,461,256		6,269,964		392,955		—		—		10,124,175
ITW Rippey	787,945		6,283,198		304,387		—		—		7,375,530
Dollar General, Big Spring	103,838		1,177,845		76,351		—		(127,252)		1,230,782
Gap	2,076,754		6,301,522		360,377		—		(68,207)		8,670,446
L-3 Communications	3,552,878		8,078,979		454,035		—		(174,081)		11,911,811
Sutter Health	2,443,240		27,111,815		1,616,610		87,549		—		31,259,214
Walgreens	1,832,430		3,391,012		335,945		272,829		—		5,832,216
Total REIT I Property Portfolio	41,337,580		103,457,958		6,654,774		764,531		(1,115,746)		151,099,097
Taylor Fresh Foods	4,312,016		29,882,353		2,894,017		—		(11,526,976)		25,561,410
	$	45,649,596	$	133,340,311	$	9,548,791	$	764,531	$	(12,642,722)	$	176,660,507

Property Purchase Price


Purchase price and other acquisition costs	$	176,660,507
Purchase deposit applied	(2,000,000)
Acquisition fees to affiliate related to Taylor Fresh Foods (Note 9)	(741,000)
Acquisition of real estate before financing	$	173,919,507

Capitalized Acquisition Fees

Capitalized acquisition fee paid to the Former Advisor for a property acquired during the year ended December 31, 2019 is as follows:


Property	Amount
Taylor Fresh Foods	$	741,000

Lease Expiration Dates

The noncancellable lease terms of the properties acquired during the year ended December 31, 2019 were as follows:


Property						Lease Expiration
Chevron Gas Station						5/27/2025
Levins						8/20/2023
Chevron Gas Station						9/30/2025
Island Pacific Supermarket						5/31/2025
Dollar General						7/31/2028
Rite Aid						2/25/2028
PMI Preclinical						10/31/2025
EcoThrift						2/28/2026
GSA (MSHA)						8/24/2026
PreK San Antonio						7/31/2021
Dollar Tree						7/31/2025
Dinan Cars						4/30/2023
Solar Turbines						2/28/2021
Amec Foster						7/31/2021
ITW Rippey						8/1/2022
Dollar General Big Spring						4/30/2030
Gap						2/28/2023
L-3 Communications						4/30/2022
Sutter Health						10/31/2025
Walgreens						2/28/2031
Taylor Fresh Foods						9/30/2033

Dispositions and Real Estate Investments Held for Sale

The Company sold the following properties during the year ended December 31, 2020:


Property	Location	Disposition Date	Property Type	Rentable Square Feet	Contract Sale Price		Gain (Loss) on Sale
Rite Aid	Lake Elsinore, CA	8/3/2020	Retail	17,272	$	7,250,000	$	(422)
Walgreens	Stockbridge, GA	8/27/2020	Retail	15,120	5,538,462		1,306,768
Island Pacific Supermarket	Elk Grove, CA	9/16/2020	Retail	13,963	3,155,000		387,296
Dinan Cars	Morgan Hill, CA	10/28/2020	Industrial	27,296	6,100,000		961,836
24 Hour Fitness	Las Vegas, NV	12/16/2020	Retail	45,000	9,052,941		1,484,271
				118,651	$	31,096,403	$	4,139,749

The following table summarizes the major components of assets and liabilities related to real estate investments held for sale as of December 31, 2020:


	December 31, 2020
Assets related to real estate investments held for sale:
Land, buildings and improvements	$	25,675,459
Tenant origination and absorption costs	554,788
Accumulated depreciation and amortization	(1,644,508)
Real estate investments held for sale, net	24,585,739
Other assets, net	1,079,361
Total assets related to real estate investments held for sale:	$	25,665,100

Liabilities related to real estate investments held for sale:
Mortgage notes payable, net	$	9,088,438
Other liabilities, net	801,337
Total liabilities related to real estate investments held for sale:	$	9,889,775

The following table summarizes the major components of rental income, expenses and impairment related to real estate investments held for sale as of December 31, 2020, which were included in continuing operations for the years ended December 31, 2020 and 2019:


	Year Ended December 31,
	2020		2019
Total revenues	$	2,326,058	$	1,325,265
Expenses:
Interest expense	552,246		323,460
Depreciation and amortization	737,278		344,708
Other expenses	352,280		385,282
Impairment of real estate properties	761,100		—
Total expenses	2,402,904		1,053,450
Net (loss) income	$	(76,846)	$	271,815

Revenue Concentration

The Company’s revenue concentration based on tenants representing greater than 10% of total revenues for the year ended December 31, 2019 is as follows:


	2019
Property and Location	Revenue		Percentage of Total Revenue
AvAir, Chandler, AZ	$	2,670,159	10.9%

Future Minimum Contractual Rent Payments Due under Noncancelable Operating Leases

As of December 31, 2020, the future minimum contractual rent payments due under the Company’s noncancelable operating leases, including lease amendments executed subsequent to December 31, 2020 and excluding rents due related to real estate investments held for sale, are as follows:


2021	$	26,761,843
2022	24,418,710
2023	20,157,378
2024	19,674,819
2025	16,456,145
Thereafter	43,827,967
	$	151,296,862

Finite-Lived Intangible Assets

As of December 31, 2020 and 2019, the Company’s intangible assets were as follows:


	December 31, 2020						December 31, 2019
	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	$	23,792,057	$	1,128,549	$	(15,163,672)	$	27,266,610	$	1,547,646	$	(15,713,975)
Accumulated amortization	(9,695,960)		(307,707)		2,597,935		(6,005,248)		(295,912)		1,122,616
Net amount	$	14,096,097	$	820,842	$	(12,565,737)	$	21,261,362	$	1,251,734	$	(14,591,359)

Finite-Lived Intangible Assets, Future Amortization

As of December 31, 2020, amortization of intangible assets for each year of the next five years and thereafter is expected to be as follows:


	Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles
2021	$	3,801,383	$	129,823	$	(1,462,730)
2022	2,628,700		129,823		(1,217,076)
2023	1,751,653		127,174		(921,169)
2024	1,625,159		122,543		(917,750)
2025	1,242,973		115,995		(917,750)
Thereafter	3,046,229		195,484		(7,129,262)
	$	14,096,097	$	820,842	$	(12,565,737)

Weighted-Average Remaining Amortization Period	7.1 years		7.2 years		12.2 years