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UNCONSOLIDATED INVESTMENT IN REAL ESTATE PROPERTY
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
UNCONSOLIDATED INVESTMENT IN REAL ESTATE PROPERTY UNCONSOLIDATED INVESTMENT IN REAL ESTATE PROPERTY
The Company’s investment in unconsolidated property as of September 30, 2024 and December 31, 2023 is as follows:
September 30,
2024		December 31,
2023
The TIC Interest$9,490,189 $10,053,931 
The Company’s income from investment in unconsolidated property for the three and nine months ended September 30, 2024 and 2023 is as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
The TIC Interest$74,509 $79,166 $222,574 $207,506 
TIC Interest
During 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired an approximate 72.7% TIC Interest. The remaining approximate 27.3% interest in the Santa Clara, California property is held by third parties.
The Company and the third parties each hold an individual, undivided ownership interest in the Santa Clara property. Undivided ownership interests are arrangements in which two or more parties jointly own the property and the title is held individually to the extent of each party’s interest. Based upon the nature of the Company’s interest, consolidation is not appropriate, as the consolidation guidance applies to the consolidation of separate legal entities. As the Santa Clara property is subject to joint control, the Company accounts for its TIC Interest using the equity method. The property lease expiration date is March 16, 2026, and the lease provides for three five-year renewal options. The mortgage on this property bears interest at 3.86% and has a maturity date of October 1, 2027.
The Company receives an approximate 72.7% of the cash flow distributions and recognizes approximately 72.7% of the results of operations. During the three months ended September 30, 2024 and 2023, the Company received cash distributions of $241,106 and $54,706, respectively, from the TIC Interest, and $786,316 and $179,121 during the nine months ended September 30, 2024 and 2023, respectively.
As part of the Company’s continued effort to increase balance sheet simplicity, management is currently exploring opportunities to acquire the minority interests in the property in which we hold the TIC Interest, which would result in consolidation of the asset, or to sell the TIC Interest.
The following is summarized financial information for the Santa Clara property as of September 30, 2024 and December 31, 2023 and for the three and nine months ended September 30, 2024 and 2023:
September 30,
2024		December 31,
2023
Assets:
Real estate investments, net$27,789,089 $28,563,746 
Cash and cash equivalents426,652 482,653 
Other assets81,525 79,639 
Total assets$28,297,266 $29,126,038 
Liabilities:
Mortgage note payable, net$12,415,632 $12,642,798 
Below-market lease, net2,258,022 2,367,812 
Other liabilities571,502 287,989 
Total liabilities15,245,156 15,298,599 
Total equity13,052,110 13,827,439 
Total liabilities and equity$28,297,266 $29,126,038 
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Income
$684,904 $693,170 $2,067,396 $2,036,365 
Expenses:
Depreciation and amortization259,846 257,844 779,517 780,802 
Other expenses193,239 193,902 594,020 572,749 
Total expenses
453,085 451,746 1,373,537 1,353,551 
Operating income231,819 241,424 693,859 682,814 
Interest expense129,343 132,547 387,746 395,810 
Net income$102,476 $108,877 $306,113 $287,004