DEBT (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of Long-Term Debt Instruments

The breakdown of debt as of September 30, 2024 and December 31, 2023 is as follows:

	September 30, 2024		December 31, 2023
Mortgage notes payable, net	$	30,863,014	$	31,030,241
Credit facility:
Term loan, net (1)	248,876,279		248,508,515
Total	$	279,739,293	$	279,538,756

(1)The increase in the net balance of the term loan reflects ongoing amortization of deferred financing costs over the remaining term of the loan at the rate of approximately $122,588 per quarter. Deferred financing costs for the revolver are included in other assets in accordance with GAAP and are being amortized at the rate of $91,673 per quarter.

Schedule of Debt

As of September 30, 2024 and December 31, 2023, the Company’s outstanding mortgage notes payable consisted of the following:

Collateral	2024 Principal Amount		2023 Principal Amount		Interest Rate (1)	Loan Maturity
Costco property	$	18,661,068	$	18,850,000	4.85%	01/01/2030
Taylor Fresh Foods property	12,350,000		12,350,000		3.85%	11/01/2029
Total mortgage notes payable	31,011,068		31,200,000
Less unamortized deferred financing costs	(148,054)		(169,759)
Mortgage notes payable, net	$	30,863,014	$	31,030,241

(1)Represents the contractual interest rate in effect under the respective mortgage note payable as of September 30, 2024.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following summarizes the face value, carrying amount and fair value of the Company’s mortgage notes payable which is a Level 3 fair value measurement, reflecting unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, as of September 30, 2024 and December 31, 2023:

	September 30, 2024						December 31, 2023
	Face Value		Carrying Value		Fair Value		Face value		Carrying Value		Fair Value
Mortgage notes payable	$	31,011,068	$	30,863,014	$	28,868,211	$	31,200,000	$	31,030,241	$	27,999,621

Schedule of Maturities of Long-term Debt

The following summarizes the future principal repayments of the Company’s mortgage notes payable and Credit Facility as of September 30, 2024:

	Mortgage Notes Payable		Credit Facility
			Revolver		Term Loan		Total
October through December 2024	$	93,536	$	—	$	—	$	93,536
2025	557,211		—		—		557,211
2026	582,154		—		—		582,154
2027	608,230		—		250,000,000		250,608,230
2028	635,488		—		—		635,488
Thereafter	28,534,449		—		—		28,534,449
Total principal	31,011,068		—		250,000,000		281,011,068
Less: deferred financing costs, net	(148,054)		—		(1,123,721)		(1,271,775)
Net principal	$	30,863,014	$	—	$	248,876,279	$	279,739,293

Schedule of Interest Expense

The following is a reconciliation of the components of interest expense, net of derivative settlements and unrealized gain on interest rate swaps for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Mortgage notes payable:
Interest expense	$	345,424	$	411,610	$	1,038,855	$	1,354,642
Amortization of deferred financing costs	7,235		7,235		21,705		21,705
Credit facility:
Interest expense	4,565,798		4,509,026		13,586,024		10,895,933
Unused commitment fees	95,833		94,525		285,416		384,164
Amortization of deferred financing costs	214,261		214,261		642,783		642,783
Swap derivatives:
Derivative cash settlements (1)	(1,647,754)		(1,586,641)		(4,953,188)		(4,062,442)
Unrealized loss (gain) on interest rate swap valuation for first swap (2)	1,355,228		167,926		2,163,396		(327,824)
Amortization of unrealized gain on interest rate swap valuation (2)	(255,873)		(253,092)		(762,059)		(756,496)
Unrealized loss (gain) on interest rate swap valuation for second swap (3)	1,323,446		(710,258)		282,142		(1,697,520)
Other	100,070		68,326		209,093		306,834
Interest expense, net	$	6,103,668	$	2,922,918	$	12,514,167	$	6,761,779

(1)    Derivative cash settlements received from two swap instruments entered into by the Company covering (i) its original $150,000,000 Credit Facility Term Loan (first swap) effective May 31, 2022 and (ii) its additional $100,000,000 Term Loan commitment (second swap) effective November 30, 2022, as described above and in Note 8.

(2)    Subsequent to December 31, 2022, the Company's $150,000,000 derivative instrument failed to qualify as a cash flow hedge because it was deemed ineffective, as described in Note 8. The $1,355,228 and $2,163,396 of unrealized losses on the swap valuation for the three and nine months ended September 30, 2024, respectively, and the $167,926 and $(327,824) of unrealized loss (gain) for the three and nine months ended September 30, 2023, respectively, are recognized as an increase (decrease) in interest expense. Furthermore, the unrealized gain on interest rate swap derivative previously recorded in accumulated other comprehensive income and noncontrolling interest in Operating Partnership is being amortized on a straight-line basis as a reduction to interest expense through the maturity date of the loan agreement (see Note 8 for more details).

(3)    The Company's $100,000,000 derivative instrument was not designated as a cash flow hedge and, therefore, the $1,323,446 and $282,142 of unrealized losses on the valuation of this swap for the three and nine months ended September 30, 2024, respectively, are reflected as increases in interest expense. The $710,258 and $1,697,520 of unrealized gains on the valuation of this swap for the three and nine months ended September 30, 2023, respectively, are reflected as decreases in interest expense (see Note 8 for more details).