Investment Properties (Tables)

12 Months Ended

Dec. 31, 2021


	December 31,
	2021		2020 (1)
Land	$	14,142,555	$	12,281,693
Site improvements		4,431,338		3,751,212
Buildings and improvements (2)		57,322,242		45,137,682
Furniture, fixtures and equipment		—		825,147
Investment properties at cost (3)		75,896,135		61,995,734
Less accumulated depreciation		6,488,220		4,939,872
Investment properties, net	$	69,407,915	$	57,055,862

(1)	As of December 31, 2020, the Clemson Best Western Property is recorded as an investment property. As of December 31, 2021, the Clemson Best Western Property is recorded as an asset held for sale. Please see the note on “assets held for sale”, below.

(2)	Includes tenant improvements (both those acquired at the acquisition and those constructed after the acquisition), tenant inducements, capitalized leasing commissions and other capital costs incurred post-acquisition.

(3)	Excludes intangible assets and liabilities (see Note 2, above, for a discussion of the Company’s accounting treatment of intangible assets), escrow deposits and property reserves.

Schedule of deferred costs, net of depreciation and amortization


	December 31,
	2021		2020
Capitalized tenant improvements – acquisition cost allocation, net	$	1,840,612	$	1,155,505
Capitalized tenant improvements incurred subsequent to acquisition, net		257,340		179,919

Schedule of assets held for sale and liabilities associated with assets held for sale


	December 31,
	2021		2020
Investment properties, net	$	9,846,208	$	12,410,250
Total assets held for sale	$	9,846,208	$	12,410,250


	December 31,
	2021		2020
Mortgages payable, net	$	7,615,368	$	10,352,000
Total liabilities associated with assets held for sale	$	7,615,368	$	10,352,000

Schedule of operating results of the Hampton Inn Property included in continuing operations


	Year ended December 31,
	2021		2020
Hotel property room revenues	$	1,912,809	$	1,697,432
Hotel property other revenues		28,274		61,250
Total Revenue		1,941,083		1,758,682
Hotel property operating expenses		1,701,451		1,755,684
Depreciation and amortization		—		677,560
Total Operating Expenses		1,701,451		2,433,244
Gain on disposal of investment properties		124,641		—
Operating Income (Loss)		364,273		(674,562)
Interest expense		475,844		811,214
Net Loss from Operations		(111,571)		(1,485,776)

Other income (loss)		178,166		(10,697)
Net Income (Loss)		66,595		(1,496,473)
Net income (loss) attributable to Hampton Inn Property noncontrolling interests		14,651		(1,131,765)
Net Income (Loss) Attributable to Medalist Common Shareholders	$	51,944	$	(364,708)

Brookfield Center Property.

Schedule of fair values of assets acquired and liabilities assumed


	Lancer		Greenbrier
	Center		Business Center		Parkway
	Property		Property		Property		Total
Fair value of assets acquired
Investment property (a)	$	9,902,876	$	6,896,803	$	7,277,036	$	24,076,715
Lease intangibles and other assets (b)		1,023,753		583,940		472,288		2,079,981
Restricted cash acquired (c)		—		150,000		—		150,000
Above market leases (b)		157,438		48,186		2,494		208,118
Below market leases (b)		(878,682)		(100,167)		(153,794)		(1,132,643)
Preliminary fair value of net assets acquired (d)	$	10,205,385	$	7,578,762	$	7,598,024	$	25,382,171

Purchase consideration
Consideration paid with cash (e)	$	3,783,515	$	3,097,162	$	2,138,795	$	9,019,472
Consideration paid by noncontrolling owner (f)		—		—		469,492		469,492
Consideration paid with new mortgage debt, net (g)		6,421,870		—		4,989,737		11,411,607
Consideration paid with assumed mortgage debt, net (h)		—		4,481,600		—		4,481,600
Preliminary total consideration (i)	$	10,205,385	$	7,578,762	$	7,598,024	$	25,382,171

Represents the fair value of the investment property acquired which includes land, buildings, site improvements, tenant improvements and furniture, fixtures and equipment. The fair value was determined using the market approach, the cost approach, the income approach or a combination thereof. Closing and acquisition costs were allocated and added to the fair value of the tangible assets acquired.

b.	Represents the fair value of lease intangibles and other assets. Lease intangibles include leasing commissions, leases in place, above market leases, below market leases and legal and marketing costs associated with replacing existing leases.

c.	Represents an operating reserve funded by the Company at closing.

d.	Represents the total fair value of assets and liabilities acquired at closing.

e.	Represents cash paid at closing and cash paid for acquisition (including intangible assets), and closing costs paid at closing or directly by the Company outside of closing.

f.	Represents cash paid at closing by the noncontrolling owner. In addition to cash paid at closing, the noncontrolling owner provided $34,508 directly to the operating entity for working capital purposes.

g.	Issuance of new mortgage debt to fund the purchase of the Lancer Center Property , net of capitalized loan issuance costs. See Note 5, below.

h.	Assumption of mortgage debt related to the purchase of the Greenbrier Business Center Property. See Note 5, below.

i.	Represents the consideration paid for the fair value of the assets and liabilities acquired.

December 31,

Capitalized leasing commissions, net