NOTE 11. SUBSEQUENT EVENTS

The Company evaluates subsequent events up until the date the condensed consolidated financial statements are issued.

Offering Status

Through May 4, 2018, the Company had sold 11,048,439 shares of Class C common stock in the Registered Offering for aggregate gross offering proceeds of $110,563,193 including 489,638 shares of common stock sold under its Registered DRP Offering for aggregate gross offering proceeds of $4,904,904, and 3,076 shares of Class S common stock in the Class S Offering for aggregate gross offering proceeds of $30,765, including 76 shares of Class S common stock sold under its dividend reinvestment plan applicable to Class S common stock for aggregate gross offering proceeds of $765.

Distributions

On April 3, 2018, the Company’s board of directors declared distributions based on daily record dates for the period April 1, 2018 through April 30, 2018 at a rate of $0.0019542 per share per day on the outstanding shares of the Company’s Class C and Class S common stock, which the Company will pay on May 25, 2018.

On April 30, 2018, the Company’s board of directors declared distributions based on daily record dates for the period May 1, 2018 through May 31, 2018 at a rate of $0.0018911 per share per day on the outstanding shares of the Company’s Class C and Class S common stock, which the Company will pay on June 25, 2018.

Redeemable common stock

For the period from April 1, 2018 through May 4, 2018, the Company redeemed 169,460 shares of Class C common stock for $1,703,068.

Interest Rate Swap Agreement

In April 2018, the Company entered into an interest rate swap agreement to fix the interest rate of the 3M property mortgage loan from a variable interest rate of one-month LIBOR plus 2.25% to a fixed rate of 5.09%.

Acquisitions

On April 4, 2018, the Company, through a wholly-owned subsidiary of the Operating Partnership, completed the acquisition of an office property with approximately 87,230 square feet located in Nashville, Tennessee leased on a triple net basis to Cummins, Inc. (“Cummins”). The contract purchase price for the property was approximately $15,500,000. The property’s lease expires on February 28, 2023 and includes three five-year renewal options to extend the expiration date. The property is expected to generate $6,840,084 in total rental revenue over the course of its remaining lease term. The seller of the property was not affiliated with the Company or its affiliates. The Company obtained an $8,350,000 mortgage loan through a nonaffiliated lender. The loan is secured by the Cummins property. The mortgage loan has a variable interest rate of one-month LIBOR plus 2.25% and matures on April 4, 2023. The Company entered into an interest rate swap agreement to fix the interest rate on this mortgage loan at 5.155%.