Related Party Transactions and Economic Dependence |
NOTE
11. Related Party Transactions and Economic Dependence
The
following entities and individuals are considered to be Related Parties:
Moishe
Gubin |
Chairman
of the Board |
Michael
Blisko |
Director
|
Nahman
Eingal |
Former
Chief Financial Officer |
Operating
entities |
See
list below |
Lease
Agreements with Related Parties
As
of December 31, 2023 and 2022, each of the Company’s facilities were leased and operated by separate tenants. Each tenant is an
entity that leases the facility from one of the Company’s subsidiaries and operates the facility as a healthcare facility. The
Company had 64 tenants out of 107 who were related parties as of December 31, 2023 and 41 tenants out of 79 who were related parties
as of December 31, 2022. Most of the lease agreements are triple net leases.
On
April 4, 2022, an affiliated tenant in Illinois notified the Company of its intent to default with respect to two master lease agreements.
Each lease included three nursing home facilities with a combined rent of $225,000 per month, or $2.7 million annually. Default occurred
on June 30, 2022, and the Company recognized a loss of $1,075,000 due to the write-offs of straight-line rent receivables during the
year ended December 31, 2022. On July 1, 2022, the Company entered into new lease agreements with an unaffiliated third-party operator
to lease these properties. The new leases have terms of 10 years each and provide for a combined average base rent of $180,000 per month,
or $2.3 million per year, on average, over the life of the leases. In February 2023 one facility under this master lease was closed.
The closure was a result of the tenant request and mainly for efficiency reasons. This facility is under a master lease with 5 other
facilities and the rent payment is continuing with no interruption and at the same amount.
The
following table sets forth details of the lease agreements in force between the Company and its subsidiaries and lessees that are related
parties:
Schedule of Related Party Transactions
| |
| |
| |
| (1)(2) | | |
| (1)(2)
| | |
| | | |
| | | |
| | | |
| |
|
| |
| |
| |
Related
Party Ownership in
Manager/Tenant/ Operator
(1) (2) | | |
| | |
| | |
| | |
| |
|
State | |
Lessor/ Company
Subsidiary | |
Tenant/ Operator | |
Moishe
Gubin/Gubin Enterprises LP | | |
Michael
Blisko/Blisko Enterprises LP | | |
Average
annual rent over life of lease | | |
Annual
Escalation | | |
% of
total rent | | |
Lease maturity | |
Extension options |
| |
Master Lease Indiana | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
|
IN | |
1020 West Vine Street Realty, LLC | |
The Waters of Princeton II, LLC | |
| 49.49 | % | |
| 50.51 | % | |
$ | 1,045,506 | | |
| 3.00 | % | |
| 1.07 | % | |
8/1/2025 | |
2 five year |
IN | |
12803 Lenover Street Realty LLC | |
The Waters of Dillsboro – Ross Manor II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 1,353,655 | | |
| 3.00 | % | |
| 1.39 | % | |
8/1/2025 | |
2 five year |
IN | |
1350 North Todd Drive Realty, LLC | |
The Waters of Scottsburg II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 1,089,527 | | |
| 3.00 | % | |
| 1.12 | % | |
8/1/2025 | |
2 five year |
IN | |
1600 East Liberty Street Realty LLC | |
The Waters of Covington II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 1,309,634 | | |
| 3.00 | % | |
| 1.35 | % | |
8/1/2025 | |
2 five year |
IN | |
1601 Hospital Drive Realty LLC | |
The Waters of Greencastle II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 1,100,532 | | |
| 3.00 | % | |
| 1.13 | % | |
8/1/2025 | |
2 five year |
IN | |
1712 Leland Drive Realty, LLC | |
The Waters of Huntingburg II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 1,045,506 | | |
| 3.00 | % | |
| 1.07 | % | |
8/1/2025 | |
2 five year |
IN | |
2055 Heritage Drive Realty LLC | |
The Waters of Martinsville II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 1,133,548 | | |
| 3.00 | % | |
| 1.16 | % | |
8/1/2025 | |
2 five year |
IN | |
3895 South Keystone Avenue Realty LLC | |
The Waters of Indianapolis II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 891,431 | | |
| 3.00 | % | |
| 0.92 | % | |
8/1/2025 | |
2 five year |
IN | |
405 Rio Vista Lane Realty LLC | |
The Waters of Rising Sun II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 638,309 | | |
| 3.00 | % | |
| 0.66 | % | |
8/1/2025 | |
2 five year |
IN | |
950 Cross Avenue Realty LLC | |
The Waters of Clifty Falls II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 1,518,735 | | |
| 3.00 | % | |
| 1.56 | % | |
8/1/2025 | |
2 five year |
IN | |
958 East Highway 46 Realty LLC | |
The Waters of Batesville II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 946,458 | | |
| 3.00 | % | |
| 0.97 | % | |
8/1/2025 | |
2 five year |
IN | |
2400 Chateau Drive Realty, LLC | |
The Waters of Muncie II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 792,383 | | |
| 3.00 | % | |
| 0.81 | % | |
8/1/2025 | |
2 five year |
IN | |
The Big H2O LLC | |
The Waters of New Castle II LLC | |
| 49.49 | % | |
| 50.51 | % | |
| 726,351 | | |
| 3.00 | % | |
| 0.75 | % | |
8/1/2025 | |
2 five year |
STRAWBERRY
FIELDS REIT, INC. and Subsidiaries
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE
11. Related Party Transactions and Economic Dependence (cont.)
Lease
Agreements with Related Parties (cont.)
| |
| |
| |
| (1)(2) | | |
| (1)(2)
| | |
| | | |
| | | |
| | | |
| |
|
| |
| |
| |
Related
Party Ownership in
Manager/Tenant/ Operator
(1) (2) | | |
| | |
| | |
| | |
| |
|
State | |
Lessor / Company
Subsidiary | |
Tenant/ Operator | |
Moishe
Gubin/Gubin Enterprises LP | | |
Michael
Blisko/Blisko Enterprises LP | | |
Average
annual rent over life of lease | | |
Annual
Escalation | | |
% of
total rent | | |
Lease maturity | |
Extension options |
| |
Master Lease Tennessee | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
|
TN | |
146 Buck Creek Road, LLC | |
The Waters of Roan Highlands, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,111,794 | | |
| 3.00 | % | |
| 1.14 | % | |
8/1/2031 | |
2 five year |
TN | |
704
5th Avenue East, LLC | |
The Waters of Springfield, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 917,230 | | |
| 3.00 | % | |
| 0.94 | % | |
8/1/2031 | |
2 five year |
TN | |
2501 River Road, LLC | |
The Waters of Cheatham, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,111,794 | | |
| 3.00 | % | |
| 1.14 | % | |
8/1/2031 | |
2 five year |
TN | |
202 Enon Springs Road East, LLC | |
The Waters of Smyrna, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,264,666 | | |
| 3.00 | % | |
| 1.30 | % | |
8/1/2031 | |
2 five year |
TN | |
140 Technology Lane, LLC | |
The Waters of Johnson City, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,167,384 | | |
| 3.00 | % | |
| 1.20 | % | |
8/1/2031 | |
2 five year |
TN | |
835 Union Street, LLC | |
The Waters of Shelbyville, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,334,153 | | |
| 3.00 | % | |
| 1.37 | % | |
8/1/2031 | |
2 five year |
| |
Master Lease Tennessee 2 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
|
TN | |
505 North Roan, LLC | |
Agape Rehabilitation & Nursing Center, A Water’s
Community LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,628,910 | | |
| 3.00 | % | |
| 1.67 | % | |
7/1/2031 | |
2 five year |
TN | |
14510 Highway 79, LLC | |
Waters of McKenzie, A Rehabilitation & Nursing Center,
LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,279,858 | | |
| 3.00 | % | |
| 1.31 | % | |
7/1/2031 | |
2 five year |
TN | |
6500 Kirby Gate Boulevard, LLC | |
Waters of Memphis, A Rehabilitation & Nursing Center,
LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,745,261 | | |
| 3.00 | % | |
| 1.79 | % | |
7/1/2031 | |
2 five year |
TN | |
978 Highway 11 South, LLC | |
Waters of Sweetwater, A Rehabilitation & Nursing Center,
LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,745,261 | | |
| 3.00 | % | |
| 1.79 | % | |
7/1/2031 | |
2 five year |
TN | |
2830 Highway 394, LLC | |
Waters of Bristol, A Rehabilitation & Nursing Center,
LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 2,327,014 | | |
| 3.00 | % | |
| 2.38 | % | |
7/1/2031 | |
2 five year |
STRAWBERRY
FIELDS REIT, INC. and Subsidiaries
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE
11. Related Party Transactions and Economic Dependence (cont.)
Lease
Agreements with Related Parties (cont.)
| |
| |
| |
| (1)(2) | | |
| (1)(2)
| | |
| | | |
| | | |
| | | |
| |
|
| |
| |
| |
Related
Party Ownership in
Manager/Tenant/ Operator
(1) (2) | | |
| | |
| |
| | |
| | |
|
State | |
Lessor/
Company Subsidiary | |
Tenant/
Operator | |
Moishe
Gubin/Gubin Enterprises LP | | |
Michael
Blisko/Blisko Enterprises LP | | |
Average
annual rent over life of lease | | |
Annual
Escalation | |
%
of total rent | | |
Lease
maturity | | |
Extension
options |
| |
Master Lease Indiana 2 | |
| |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
|
IN | |
8400 Clearvista Place LLC | |
The Waters of Castleton SNF,
LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 804,694 | | |
Varies(3)(4) | |
| 0.83 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
524 Anderson Road LLC | |
The Waters of Chesterfield SNF, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 423,523 | | |
Varies(3)(4) | |
| 0.43 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
640 West Ellsworth Street LLC | |
The Waters of Columbia City SNF, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 592,933 | | |
Varies(3)(4) | |
| 0.61 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
11563 West 300 South LLC | |
The Waters of Dunkirk SNF, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 324,701 | | |
Varies(3)(4) | |
| 0.33 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
5544 East State Boulevard LLC | |
The Waters of Fort Wayne SNF, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 543,522 | | |
Varies(3)(4) | |
| 0.56 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
548 South 100 West LLC | |
The Waters of Hartford City SNF, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 458,817 | | |
Varies(3)(4) | |
| 0.47 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
2901 West 37th Avenue LLC | |
The Waters of Hobart SNF, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 776,459 | | |
Varies(3)(4) | |
| 0.80 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
1500 Grant Street LLC | |
The Waters of Huntington SNF, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 599,991 | | |
Varies(3)(4) | |
| 0.62 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
787 North Detroit Street LLC | |
The Waters of LaGrange SNF, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 705,872 | | |
Varies(3)(4) | |
| 0.72 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
981 Beechwood Avenue LLC | |
The Waters of Middletown SNF, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 423,523 | | |
Varies(3)(4) | |
| 0.43 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
317 Blair Pike LLC | |
The Waters of Peru SNF, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 917,634 | | |
Varies(3)(4) | |
| 0.94 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
815 West Washington Street LLC | |
The Waters of Rockport SNF | |
| 50.00 | % | |
| 50.00 | % | |
| 423,523 | | |
Varies(3)(4) | |
| 0.43 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
612 East 11th Street LLC | |
The Waters of Rushville SNF | |
| 50.00 | % | |
| 50.00 | % | |
| 691,755 | | |
Varies(3)(4) | |
| 0.71 | % | |
| 2029 | | |
One 3 years and two 5 years |
STRAWBERRY
FIELDS REIT, INC. and Subsidiaries
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE
11. Related Party Transactions and Economic Dependence (cont.)
Lease
Agreements with Related Parties (cont.)
| |
| |
| |
| (1)(2) | | |
| (1)(2)
| | |
| | | |
| | | |
| | | |
| |
|
| |
| |
| |
Related
Party Ownership in
Manager/Tenant/ Operator
(1) (2) | | |
| | |
| |
| | |
| | |
|
State | |
Lessor/ Company Subsidiary | |
Tenant/ Operator | |
Moishe Gubin/Gubin
Enterprises LP | | |
Michael Blisko/Blisko
Enterprises LP | | |
Average annual
rent over life of lease | | |
Annual Escalation | |
% of total
rent | | |
Lease maturity | | |
Extension options |
IN | |
505 West Wolfe Street LLC | |
The Waters of Sullivan SNF | |
| 50.00 | % | |
| 50.00 | % | |
| 656,461 | | |
Varies(3)(4) | |
| 0.67 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
500 East Pickwick Drive LLC | |
The Waters of Syracuse SNF | |
| 50.00 | % | |
| 50.00 | % | |
| 465,876 | | |
Varies(3)(4) | |
| 0.48 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
300 Fairgrounds Road LLC | |
The Waters of Tipton SNF | |
| 50.00 | % | |
| 50.00 | % | |
| 1,058,808 | | |
Varies(3)(4) | |
| 1.09 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
1900 Alber Street LLC | |
The Waters of Wabash SNF East | |
| 50.00 | % | |
| 50.00 | % | |
| 592,933 | | |
Varies(3)(4) | |
| 0.61 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
1720 Alber Street LLC | |
The Waters of Wabash SNF West | |
| 50.00 | % | |
| 50.00 | % | |
| 310,584 | | |
Varies(3)(4) | |
| 0.32 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
300 North Washington Street LLC | |
The Waters of Wakarusa SNF | |
| 50.00 | | |
| 50.00 | % | |
| 938,810 | | |
Varies(3)(4) | |
| 0.96 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
8400 Clearvista Place LLC | |
The Waters of Castleton ALF, LLC | |
| 50.00 | | |
| 50.00 | % | |
| 381,171 | | |
Varies(3)(4) | |
| 0.39 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
787 North Detroit Street LLC | |
The Waters of LaGrange ALF, LLC | |
| 50.00 | | |
| 50.00 | % | |
| 119,998 | | |
Varies(3)(4) | |
| 0.12 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
612 East 11th Street LLC | |
The Waters of Rushville ALF, LLC | |
| 50.00 | | |
| 50.00 | % | |
| 204,703 | | |
Varies(3)(4) | |
| 0.21 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
505 West Wolfe Street LLC | |
The Waters of Sullivan ALF, LLC | |
| 50.00 | | |
| 50.00 | % | |
| 225,879 | | |
Varies(3)(4) | |
| 0.23 | % | |
| 2029 | | |
One 3 years and two 5 years |
IN | |
300 North Washington Street LLC | |
The Waters of Wakarusa ALF, LLC | |
| 50.00 | | |
| 50.00 | % | |
| 430,582 | | |
Varies(3)(4) | |
| 0.44 | % | |
| 2029 | | |
One 3 years and two 5 years |
STRAWBERRY
FIELDS REIT, INC. and Subsidiaries
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE
11. Related Party Transactions and Economic Dependence (cont.)
Lease
Agreements with Related Parties (cont.)
| |
| |
| |
| (1)(2) | | |
| (1)(2)
| | |
| | | |
| | | |
| | | |
| |
|
| |
| |
| |
Related
Party Ownership in
Manager/Tenant/ Operator
(1) (2) | | |
| | |
| | |
| | |
| |
|
State | |
Lessor/ Company
Subsidiary | |
Manager/ Tenant/
Operator | |
Moishe
Gubin/Gubin Enterprises LP | | |
Michael
Blisko/Blisko Enterprises LP | | |
Average
Annual rent over life of lease | | |
Annual
Escalation | | |
% of
total rent | | |
Lease maturity | |
Extension options |
IL | |
516 West Frech Street, LLC | |
Parker Rehab & Nursing Center, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 498,351 | | |
| Varies
between $12,000 and $24,000 annually | | |
| 0.51 | % | |
3/31/2031 | |
None |
IL | |
Ambassador Nursing Realty, LLC | |
Ambassador Nursing and Rehabilitation Center II, LLC | |
| 40.00 | % | |
| 40.00 | % | |
| 1,005,313 | | |
| 3.00 | % | |
| 1.03 | % | |
2/28/2026 | |
2 five year |
IL | |
Momence Meadows Realty, LLC | |
Momence Meadows Nursing and Rehabilitation Center, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,038,000 | | |
| None | | |
| 1.07 | % | |
12/30/2025 | |
None |
IL | |
Forest View Nursing Realty, LLC | |
Forest View Rehabilitation and Nursing Center, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,215,483 | | |
| 3.00 | % | |
| 1.25 | % | |
12/1/2024 | |
2 five year |
IL | |
Lincoln Park Holdings, LLC | |
Lakeview Rehabilitation and Nursing Center, LLC | |
| 40.00 | % | |
| 40.00 | % | |
| 1,260,000 | | |
| None
| | |
| 1.29 | % | |
5/31/2031 | |
None |
IL | |
Continental Nursing Realty, LLC | |
Continental Nursing and Rehabilitation Center, LLC | |
| 40.00 | % | |
| 40.00 | % | |
| 1,575,348 | | |
| None
| | |
| 1.62 | % | |
3/1/2031 | |
None |
IL | |
Westshire Nursing Realty, LLC | |
City View Multicare Center, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 1,788,365 | | |
| 3.00 | % | |
| 1.84 | % | |
9/1/2025 | |
2 five year |
IL | |
Belhaven Realty, LLC | |
Belhaven Nursing and Rehabilitation Center, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 2,134,570 | | |
| 3.00 | % | |
| 2.19 | % | |
2/28/2026 | |
2 five year |
IL | |
West Suburban Nursing Realty, LLC | |
West Suburban Nursing and Rehabilitation Center, LLC | |
| 40.00 | % | |
| 40.00 | % | |
| 1,961,604 | | |
| None | | |
| 2.01 | % | |
11/1/2027 | |
None |
IN | |
1585 Perry Worth Road, LLC | |
The Waters of Lebanon, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 116,678 | | |
| 3.00 | % | |
| 0.12 | % | |
6/1/2027 | |
2 five year |
IL | |
Niles Nursing Realty LLC | |
Niles Nursing & Rehabilitation Center LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 2,409,998 | | |
| 3.00 | % | |
| 2.48 | % | |
2/28/2026 | |
2 five year |
IL | |
Parkshore Estates Nursing Realty, LLC | |
Parkshore Estates Nursing and Rehabilitation Center, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 2,454,187 | | |
| 3.00 | % | |
| 2.52 | % | |
12/1/2024 | |
2 five year |
IL | |
Midway Neurological and Rehabilitation Realty, LLC | |
Midway Neurological and Rehabilitation Center, LLC | |
| 50.00 | % | |
| 50.00 | % | |
| 2,547,713 | | |
| 3.00 | % | |
| 2.62 | % | |
2/28/2026 | |
2 five year |
IL | |
Oak Lawn Nursing Realty, LLC | |
Oak Lawn Respiratory and Rehab center, LLC | |
| 50.00 | % | |
| 50.00 | % | |
$ | 637,092 | | |
| None | | |
| 0.65 | % | |
6/1/2031 | |
None |
STRAWBERRY
FIELDS REIT, INC. and Subsidiaries
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE
11. Related Party Transactions and Economic Dependence (cont.)
Lease
Agreements with Related Parties (cont.)
(1) |
The
interests of the two listed related parties are not held through any commonly owned holding companies. Mr. Gubin’s interests
are held directly/indirectly by Gubin Enterprises LP. Mr. Blisko’s interests are held by Blisko Enterprises LP and New York
Boys Management, LLC. |
(2) |
Each
of the tenants is a limited liability company. The percentages listed reflect the owners’ percentage ownership of the outstanding
membership interests in each tenant. |
(3) |
For
the initial two years of the lease there is no escalation, commencing with year three the escalation will be 22.3%, year four the
escalation will be 22.8% and for years 5 through maturity the annual escalation will be 2%. |
(4) |
The
tenants have an option to buy the properties after 6 years for $127 million. |
Guarantees
from Related Parties
As
of December 31, 2023 and 2022, Mr. Gubin and Mr. Blisko were not parties to any guarantees of any debt of the Company and its subsidiaries.
Balances
with Related Parties
Schedule of Balances with Related Parties
| |
2023 | | |
2022 | |
| |
December 31, | |
| |
2023 |
|
|
2022 | |
| |
(amounts in $000s) | |
Straight-line rent receivable | |
$ | 18,921 | | |
$ | 11,591 | |
Tenant portion of replacement reserve | |
$ | 9,683 | | |
$ | 10,227 | |
Notes receivable | |
$ | 7,075 | | |
$ | 7,816 | |
Payments
from Related Parties
Schedule of Payments From and to Related Parties
| |
2023 | | |
2022 | |
| |
Years ended December 31, | |
| |
2023 | | |
2022 | |
| |
(amounts in $000s) | |
Rental income received from related parties | |
$ | 56,988 | | |
$ | 54,386 | |
STRAWBERRY
FIELDS REIT, INC. and Subsidiaries
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE
11. Related Party Transactions and Economic Dependence (cont.)
Other
Related Party Relationships
On
December 31, 2023 and 2022, the Company had approximately $1.2 million and $4.7 million, respectively, on deposit
with OptimumBank. Mr. Gubin is the Chairman of the Board of OptimumBank.
On
June 14, 2022, the Company purchased a 7% note receivable with an outstanding balance of $8 million from Infinity Healthcare Management,
a company controlled by Mr. Blisko and Mr. Gubin. The note is interest only with a balloon payment due July 1, 2024. The note receivable
is due from certain unaffiliated tenants.
|