UNCONSOLIDATED INVESTMENT IN REAL ESTATE PROPERTY

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

UNCONSOLIDATED INVESTMENT IN REAL ESTATE PROPERTY

The Company’s investment in unconsolidated entity as of March 31, 2023 and December 31, 2022 is as follows:


	March 31, 2023		December 31, 2022
The TIC Interest	$	9,997,292	$	10,007,420

The Company’s income from investment in unconsolidated entity for the three months ended March 31, 2023 and 2022 is as follows:


	Three Months Ended March 31,
	2023		2022
The TIC Interest	$	55,567	$	95,464

TIC Interest

During 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired an approximate 72.7% interest in a 91,740 square foot industrial property in Santa Clara, California in a tenants-in-common ownership structure which requires a unanimous vote for significant decisions about the property. The remaining approximate 27.3% of undivided interest in the Santa Clara property is held by Hagg Lane II, LLC (an approximate 23.4% interest) and Hagg Lane III, LLC (an approximate 3.9% interest). The manager of both Hagg Lane II, LLC and Hagg Lane III, LLC was a member of the Company's board of directors from December 2019 to December 2021. The interest in the Santa Clara property over which we have the ability to exercise significant influence, but for which we do not have financial or operating control is accounted for using the equity method of accounting. The Company receives approximately 72.7% of the cash flow distributions and recognizes approximately 72.7% of the results of operations for this property.

During the three months ended March 31, 2023 and 2022, the Company received $65,696 and $95,367 in cash distributions, respectively.

The following is summarized financial information for the Santa Clara property as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and 2022:


	March 31, 2023		December 31, 2022
Assets:
Real estate investments, net	$	29,028,589	$	29,294,081
Cash and cash equivalents	578,939		300,405
Other assets	22,225		43,159
Total assets	$	29,629,753	$	29,637,645
Liabilities:
Mortgage note payable, net	$	12,862,832	$	12,936,929
Below-market lease, net	2,477,603		2,514,199
Other liabilities	539,776		424,662
Total liabilities	15,880,211		15,875,790
Total equity	13,749,542		13,761,855
Total liabilities and equity	$	29,629,753	$	29,637,645


	Three Months Ended March 31,
	2023		2022
Total revenues	$	666,146	$	714,978
Expenses:
Depreciation and amortization	267,052		261,956
Interest expense	131,325		134,294
Other expenses	189,729		187,434
Total expenses	588,106		583,684
Net income	$	78,040	$	131,294