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REAL ESTATE ACQUISITION

3 Months Ended

Mar. 31, 2022

NOTE 4 – REAL ESTATE ACQUISITION

On January 5, 2022, the Company acquired an industrial property located in Fort Myers, Florida for $8,100,000. Subsequent to the acquisition, the Company obtained $4,860,000 of nine-year mortgage debt with an interest rate of 3.09% which matures in February 2031. The Company determined that with respect to this acquisition, the gross assets acquired are concentrated in a single identifiable asset. Therefore, this 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 have been capitalized to the real estate assets acquired and will be depreciated over the respective useful lives.

The following table details the allocation of the purchase price for the Company’s acquisition of real estate during the three months ended March 31, 2022 (amounts in thousands):


			Building &		Intangible Lease
Description of Property	Land		Improvements		Asset		Liability		Total
Conditioned Air Company of Naples LLC industrial facility,
Fort Myers, Florida	$	991	$	6,876	$	568	$	(269)	$	8,166

The Company assessed the fair value of the tangible and intangible assets of the property as of the acquisition date using an income approach and estimated cash flow projections which utilize an appropriate market capitalization rate (i.e., 5.50%) and discount rate (i.e., 5.60%) categorized as Level 3 unobservable inputs in the fair value hierarchy (as defined in Note 12).