Investment in Real Estate, Net

3 Months Ended

Sep. 30, 2020

Real Estate [Abstract]

Investment in Real Estate, Net

NOTE 5 – INVESTMENT IN REAL ESTATE, NET

The Company’s investment in real estate includes fifteen apartment complexes, one commercial real estate property and three single-family houses. The properties are located throughout the United States, but are concentrated in Dallas, Texas and Southern California. The Company also has an investment in unimproved real property. Investment in real estate consisted of the following:

As of	September 30, 2020			June 30, 2020
Land	$	21,568,000		$	23,565,000
Buildings, improvements and equipment		67,198,000			69,417,000
Accumulated depreciation		(43,349,000	)		(44,112,000	)
		45,417,000			48,870,000
Land held for development		1,468,000			1,468,000
Investment in real estate, net	$	46,885,000		$	50,338,000

On August 28, 2020, the Company sold its 27-unit apartment complex located in Santa Monica, California for $15,650,000 and realized a gain on the sale of approximately $12,043,000. We will manage our federal and state income tax liability, and anticipates the utilization of our available net operating losses and capital loss carryforwards. We received net proceeds of $12,163,000 after selling costs and repayment of the RLOC of $2,985,000 as we had drawn on our RLOC in July 2018 to pay off the previous Fannie Mae mortgage on the property. We will not seek a replacement property.