DEBT (Tables)
|
9 Months Ended |
Sep. 30, 2017 |
|---|
| Debt Disclosure [Abstract] |
|
| Schedule of Debt [Table Text Block] |
As of September 30, 2017, the Company’s mortgage notes payable consisted of the following: | Collateral | | Principal
Amount | | Deferred
Loan Costs,
net | | Net Balance | | Contractual
Interest Rate (1) | | Effective
Interest
Rate (1) | | Loan
Maturity | | | Accredo/Walgreens properties | | $ | 7,167,501 | | $ | (133,762) | | $ | 7,033,739 | | 3.95% | | | 3.95 | % | 7/1/2021 | | | Dana property | | | 4,728,857 | | | (131,129) | | | 4,597,728 | | 4.56% | | | 4.56 | % | 4/1/2023 | | | Six Dollar General properties (2) | | | 3,962,211 | | | (162,403) | | | 3,799,808 | | 4.69% | | | 4.69 | % | 4/1/2022 | | | Wyndham property (3) | | | 5,945,400 | | | (112,374) | | | 5,833,026 | | One-month
LIBOR + 2.05% | | | 4.34 | % | 6/5/2027 | | | Williams Sonoma property (3) | | | 4,719,600 | | | (90,057) | | | 4,629,543 | | One-month
LIBOR + 2.05% | | | 4.05 | % | 6/5/2022 | | | Omnicare property | | | 4,440,000 | | | (174,480) | | | 4,265,520 | | 4.36% | | | 4.36 | % | 6/1/2022 | | | Harley property | | | 7,010,000 | | | (207,598) | | | 6,802,402 | | 4.25% | | | 4.25 | % | 9/1/2024 | | | Northrop Grumman property | | | 5,978,965 | | | (234,763) | | | 5,744,202 | | 4.40% | | | 4.40 | % | 3/2/2021 | | | | | $ | 43,952,534 | | $ | (1,246,566) | | $ | 42,705,968 | | | | | | | | | | (1) | Contractual interest rate represents the interest rate in effect under the mortgage note payable as of September 30, 2017. Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2017 (consisting of the contractual interest rate and the effect of the interest rate swap, if applicable). For further information regarding the Company’s derivative instruments, see Note 6. | | (2) | For the three and nine-months ended September 30, 2017, the loan was cross-collateralized with all six Dollar General properties owned by the Company and one Dollar General property owned by REIT I. As of September 30, 2017, the deeds of trust for the Company’s six Dollar General properties and the deed of trust for the REIT I Dollar General property contained cross-collateralization and cross default provisions. At September 30, 2017, the outstanding principal balance of the loan on REIT I’s one Dollar General property was $634,046. The cross-collateralization was removed on October 13, 2017. | | (3) | The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The loans are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the loans is an event of default under the terms of both loans. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the loans so that the loan to value ratio is no more than 60%. |
|
| Schedule of Maturities of Long-term Debt [Table Text Block] |
The following summarizes the future principal repayment of the Company’s mortgage notes payable and unsecured credit facility as of September 30, 2017: | | | Mortgage Note
Payable | | Unsecured
Credit Facility | | Total | | | Remaining 2017 | | $ | 190,909 | | $ | 7,119,739 | | $ | 7,310,648 | | | 2018 | | $ | 793,487 | | | - | | | 793,487 | | | 2019 | | $ | 828,346 | | | - | | | 828,346 | | | 2020 | | $ | 861,835 | | | - | | | 861,835 | | | 2021 | | $ | 7,452,683 | | | - | | | 7,452,683 | | | 2022 | | $ | 13,789,779 | | | - | | | 13,789,779 | | | 2023 | | $ | 20,035,495 | | | - | | | 20,035,495 | | | Total Principal | | | 43,952,534 | | | 7,119,739 | | | 51,072,273 | | | Deferred financing costs, net | | | (1,246,566) | | | - | | | (1,246,566) | | | Total Principal | | $ | 42,705,968 | | $ | 7,119,739 | | $ | 49,825,707 | |
|
| Schedule Of Interest Expenses Reconciliation [Table Text Block] |
The following is a reconciliation of the components of interest expense for the three and nine months ended September 30, 2017 and 2016: | | | Three Months Ended September 30 | | Nine Months Ended September 30 | | | | | 2017 | | 2016 | | 2017 | | 2016 | | | Mortgage notes payable | | | | | | | | | | | | | | | Interest expense (1) | | $ | 401,174 | | $ | 48,153 | | $ | 667,011 | | $ | 58,742 | | | Amortization of deferred financing costs | | | 53,141 | | | 8,689 | | | 88,526 | | | 9,845 | | | Unrealized loss (gain) on interest rate swaps (see Note 6) | | | (4,627) | | | - | | | 100,006 | | | - | | | Unsecured credit facility | | | | | | | | | | | | | | | Interest expense | | | 81,594 | | | 115,707 | | | 224,626 | | | 144,582 | | | Amortization of deferred financing costs | | | - | | | 762 | | | 1,118 | | | 792 | | | Forfeited loan fee | | | 10,000 | | | 960 | | | 30,000 | | | 960 | | | Total interest expense | | $ | 541,282 | | $ | 174,271 | | $ | 1,111,287 | | $ | 214,921 | | | (1) | Includes $20,831 for the three and nine months ended September 30, 2017, respectively, of monthly payments to settle the Company’s interest rate swaps. Accrued interest payable of $7,172 at September 30, 2017 represented the unsettled portion of the interest rate swaps for the period from origination of the interest rate swap through September 30, 2017. The Company had no swap agreements as of September 30, 2016. |
|