NOTE 4. REAL ESTATE

As of March 31, 2018, the Company’s real estate portfolio consisted of 19 properties in 11 states consisting of: (i) eight retail, (ii) six office and (iii) five industrial properties. The following table provides summary information regarding the Company’s real estate as of March 31, 2018:

Property	Location	Acquisition Date	Property Type	Land, Buildings and Improvements		Tenant Origination and Absorption Costs		Accumulated Depreciation and Amortization		Total Investments in Real Estate Property, Net
Accredo Health	Orlando, FL	6/15/2016	Office	$	9,855,847	$	1,053,637	$	(889,101)	$	10,020,383
Walgreens	Stockbridge, GA	6/21/2016	Retail		4,147,948		705,423		(587,592)		4,265,779
Dollar General	Litchfield, ME	11/4/2016	Retail		1,281,812		116,302		(55,335)		1,342,779
Dollar General	Wilton, ME	11/4/2016	Retail		1,543,776		140,653		(70,817)		1,613,612
Dollar General	Thompsontown, PA	11/4/2016	Retail		1,199,860		106,730		(53,167)		1,253,423
Dollar General	Mt. Gilead, OH	11/4/2016	Retail		1,174,188		111,847		(50,975)		1,235,060
Dollar General	Lakeside, OH	11/4/2016	Retail		1,112,872		100,857		(52,316)		1,161,413
Dollar General	Castalia, OH	11/4/2016	Retail		1,102,086		86,408		(50,831)		1,137,663
Dana	Cedar Park, TX	12/27/2016	Industrial		8,392,906		1,210,874		(633,662)		8,970,118
Northrop Grumman	Melbourne, FL	3/7/2017	Office		12,382,991		1,341,199		(815,655)		12,908,535
exp US Services	Maitland, FL	3/27/2017	Office		5,920,121		388,248		(226,187)		6,082,182
Harley	Bedford, TX	4/13/2017	Retail		13,178,288		—		(303,992)		12,874,296
Wyndham	Summerlin, NV	6/22/2017	Office		9,447,270		669,232		(230,013)		9,886,489
Williams Sonoma	Summerlin, NV	6/22/2017	Office		7,531,809		550,486		(209,289)		7,873,006
Omnicare	Richmond, VA	7/20/2017	Industrial		7,042,928		281,442		(162,878)		7,161,492
EMCOR	Cincinnati, OH	8/29/2017	Office		5,960,610		463,488		(110,969)		6,313,129
Husqvarna	Charlotte, NC	11/30/2017	Industrial		11,840,201		1,013,948		(131,909)		12,722,240
AvAir	Chandler, AZ	12/28/2017	Industrial		27,357,900		—		(202,437)		27,155,463
3M	DeKalb, IL	3/29/2018	Industrial		14,762,798		2,356,361		(51,889)		17,067,270
				$	145,236,211	$	10,697,135	$	(4,889,014)	$	151,044,332

Current Year Acquisition

During the three months ended March 31, 2018, the Company acquired the following property:

Property		Acquisition Date		Land			Buildings and Improvements			Below-Market Lease			Tenant Origination and Absorption Costs			Total
3M		3/29/2018		$	758,780		$	14,004,018		$	(1,417,483)		$	2,356,361		$	15,701,676

Purchase price	$	15,701,676
Acquisition fees to affiliate		(456,000)
Cash paid for acquisition of real estate investments	$	15,245,676

The non-cancellable lease term of the property acquired during the three months ended March 31, 2018 is as follows:

Property		Lease Expiration
3M			7/31/2022

The purchase price allocations reflected in the condensed consolidated financial statements is based upon current estimates and assumptions that are subject to change that may impact the fair value of the assets and liabilities above (including real estate investments, other assets and accrued liabilities). The 3M lease expires on July 31, 2022. The Company capitalized $505,507 of acquisition fees and costs in conjunction with acquisition of the property. During the three months ended March 31, 2018, the Company recognized $22,972 of total revenue related to this property.

Operating Leases

As of March 31, 2018, the Company’s portfolio’s asset concentration (greater than 10% of total assets) was as follows:

Property and Location		Net Carrying Value			Percentage of Total Assets
AvAir, Chandler, AZ		$	27,155,463			14.9	%

As of March 31, 2018, the future minimum contractual rent payments due under the Company’s operating leases, excluding any renewal periods, are as follows:

April 2018 to December 2018	$	8,863,143
2019		12,029,905
2020		12,139,170
2021		10,919,726
2022		9,508,165
2023		8,394,782
Thereafter		45,898,687
	$	107,753,578

Revenue Concentration

For the three months ended March 31, 2018, the following tenants accounted for more than 10% of the Company’s total revenue:

Property and Location	Revenue		Percentage of Total Revenue
AvAir, AZ	$	635,572		18.4	%
Northrop Grumman, FL	$	353,558		10.2	%

Intangibles

As of March 31, 2018, the Company’s intangibles were as follows:

	Tenant Origination and Absorption Costs		Above-Market Leases		Below-Market Lease
Cost	$	10,697,135	$	783,115	$	(3,071,253)
Accumulated amortization		(1,518,526)		(126,083)		120,078
Net amount	$	9,178,609	$	657,032	$	(2,951,175)

The amortization of intangible assets over the next five years is expected to be as follows:

	Tenant Origination and Absorption Costs		Above- Market Lease Intangibles		Below- Market Lease Intangibles
April 2018 through December 2018	$	1,318,047	$	72,784	$	(355,793)
2019		1,757,396		97,045		(474,391)
2020		1,757,396		97,045		(474,391)
2021		1,341,137		78,994		(474,391)
2022		805,067		63,719		(306,829)
2023		432,856		63,719		(78,369)
Thereafter		1,766,710		183,726		(787,011)
	$	9,178,609	$	657,032	$	(2,951,175)

Weighted-average remaining amortization period		7.7 years		7.8 years		10.0 years