XML 79 R11.htm IDEA: XBRL DOCUMENT
v3.20.1

INVESTMENTS IN UNCONSOLIDATED ENTITIES | 12 Months Ended
--- | ---
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract] |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | INVESTMENTS IN UNCONSOLIDATED ENTITIES The Company’s investments in unconsolidated entities as of December 31, 2019 and 2018 are as follows:
| December 31,
| 2019 |  | 2018
The TIC Interest | $ | 10,388,588 |  |  | $ | 10,749,332 |
REIT I (1) | — |  |  | 3,526,483 |
Total | $ | 10,388,588 |  |  | $ | 14,275,815 |
(1) | REIT I was merged with the Company effective December 31, 2019 (see Note 3).
The Company’s income (loss) from investments in unconsolidated entities for the years ended December 31, 2019 and 2018 are as follows:
| Years Ended December 31,
| 2019 |  | 2018
The TIC Interest | $ | 296,691 |  |  | $ | 269,191 |
REIT I | (62,643 | ) |  | (43,167 | )
Total | $ | 234,048 |  |  | $ | 226,024 |
The TIC Interest In 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired the 72.7% TIC Interest. The remaining approximate 27.3% undivided interest in the Santa Clara property is held by Hagg Lane II, LLC (an approximate 23.4%) and the Hagg Lane III, LLC (an approximate 3.9%). The manager of Hagg Lane II, LLC and Hagg Lane III, LLC was a board member of the Former Sponsor and became a board member of the Company in December 2019. The Santa Clara property does not qualify as a variable interest entity and consolidation is not required as the Company's TIC Interest does not control the property. Therefore, the Company accounts for the TIC Interest using the equity method. The Company receives approximately 72.7% of the cash flow distributions and recognizes approximately 72.7% of the results of operations. During the years ended December 31, 2019 and 2018, the Company received $657,435 and $623,406 in cash distributions, respectively. The following are summarized financial information for the Santa Clara property as of and for the years ended December 31, 2019 and 2018:
| December 31,
| 2019 |  | 2018
Assets: |  |  |
Real estate investments, net | $ | 30,858,240 |  |  | $ | 31,668,300 |
Cash and cash equivalents | 275,760 |  |  | 466,379 |
Other assets | 228,770 |  |  | 117,075 |
Total assets | $ | 31,362,770 |  |  | $ | 32,251,754 |
Liabilities: |  |  |
Mortgage notes payable, net | $ | 13,746,635 |  |  | $ | 13,994,844 |
Below-market lease, net | 2,953,360 |  |  | 3,103,778 |
Other liabilities | 68,587 |  |  | 61,188 |
Total liabilities | 16,768,582 |  |  | 17,159,810 |
Total equity | 14,594,188 |  |  | 15,091,944 |
Total liabilities and equity | $ | 31,362,770 |  |  | $ | 32,251,754 |
| Years Ended December 31,
| 2019 |  | 2018
Total revenue | $ | 2,705,126 |  |  | $ | 2,678,110 |
Expenses: |  |  |
Depreciation and amortization | 993,564 |  |  | 991,621 |
Interest expense | 574,086 |  |  | 584,059 |
Other expenses | 731,044 |  |  | 730,448 |
Total expenses | 2,298,694 |  |  | 2,306,128 |
Net income | $ | 406,432 |  |  | $ | 371,982 |
REIT I Prior to the merger of REIT I with and into Merger Sub on December 31, 2019, the Company had an approximate 4.80% ownership interest in REIT I as of December 31, 2018. The Company recorded its share of loss of REIT I based on REIT I’s results of operations for the years ended December 31, 2019 and 2018. During the years ended December 31, 2019 and 2018, the Company received $375,351 and $273,264 in cash distributions, respectively, related to its investment in REIT I. The following are summarized financial information for REIT I as of and for the years ended December 31, 2019 and 2018:
| December 31,
| 2019 |  | 2018
Assets: |  |  |
Real estate investments, net | $ | — |  |  | $ | 125,075,537 |
Cash and cash equivalents and restricted cash | — |  |  | 3,376,145 |
Other assets | — |  |  | 3,070,475 |
Total assets | $ | — |  |  | $ | 131,522,157 |
Liabilities: |  |  |
Mortgage notes payable, net | $ | — |  |  | $ | 61,446,068 |
Below-market lease, net | — |  |  | 3,105,843 |
Other liabilities | — |  |  | 3,359,618 |
Total liabilities | — |  |  | 67,911,529 |
Redeemable common stock | — |  |  | 163,572 |
Total shareholders' equity | — |  |  | 63,447,056 |
Total liabilities, redeemable common stock and shareholders' equity | $ | — |  |  | $ | 131,522,157 |
| Years Ended December 31,
| 2019 |  | 2018
Total revenue | $ | 13,132,226 |  |  | $ | 13,166,631 |
Expenses: |  |  |
Depreciation and amortization | 5,787,709 |  |  | 5,783,643 |
Interest expense | 3,425,625 |  |  | 2,813,430 |
Other expenses | 5,342,365 |  |  | 4,603,963 |
Impairment of real estate investment property | — |  |  | 862,190 |
Total expenses | 14,555,699 |  |  | 14,063,226 |
Other income: |  |  |
Gain on sale of real estate investment property, net | (1,850,845 | ) |  | — |
Loss on debt restructuring | 1,964,618 |  |  | — |
Total other income | 113,773 |  |  | — |
Net loss | $ | (1,309,700 | ) |  | $ | (896,595 | )

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.3A-04) -URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration