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REAL ESTATE ACQUISITION

6 Months Ended

Jun. 30, 2021

NOTE 4 – REAL ESTATE ACQUISITION

On May 27, 2021, the Company acquired an industrial property located in Monroe, North Carolina for $7,000,000. The Company obtained new mortgage debt of $4,500,000 simultaneously with the acquisition of the property which bears interest at a rate of 3.25% and matures in 2027. The Company determined that with respect to this acquisition, the gross assets acquired are concentrated in a single identifiable asset. Therefore, the transaction does not meet the definition of a business and is accounted for as an asset acquisition. As such, direct transaction costs associated with this asset acquisition of $61,000 have been capitalized to the real estate assets acquired and will be depreciated over the respective useful lives.

The Company assessed the fair value of the tangible assets of the property as of the acquisition date using an income approach utilizing a market capitalization rate of 7.0% which is a Level 3 unobservable input in the fair value hierarchy.

The following table details the allocation of the purchase price for the Company’s acquisition of real estate during the three and six months ended June 30, 2021 (amounts in thousands):


			Building &		Intangible Lease
Description of Property	Land		Improvements		Asset		Liability		Total
Pureon, Inc. industrial facility,
Monroe, North Carolina	$	898	$	5,106	$	1,057	$	—	$	7,061