XML 68 R10.htm IDEA: XBRL DOCUMENT
v3.20.1

REAL ESTATE INVESTMENTS | 12 Months Ended
--- | ---
Dec. 31, 2019
Real Estate [Abstract] |
Real Estate Investments | REAL ESTATE INVESTMENTS As of December 31, 2019, the Company’s real estate investment portfolio consisted of (i) 45 operating properties (including 20 operating properties acquired in connection with the Merger on December 31, 2019) located in 14 states consisting of: 20 retail properties, 16 office properties and nine industrial properties, (ii) one parcel of land, which currently serves as an easement to one of the Company’s office properties and (iii) a 72.7% undivided TIC Interest in an office property in Santa Clara, CA, as discussed in Note 5. The following table provides summary information regarding the Company’s real estate portfolio as of December 31, 2019:
Property |  | Location |  | Acquisition Date |  | Property Type |  | Land, Buildings and Improvements |  | Tenant Origination and Absorption Costs |  | Accumulated Depreciation and Amortization |  | Total Investment in Real Estate Property, Net
Accredo Health |  | Orlando, FL |  | 6/15/2016 |  | Office |  | $ | 9,855,847 |  |  | $ | 1,053,637 |  |  | $ | (1,754,846 | ) |  | $ | 9,154,638 |
Walgreens |  | Stockbridge, GA |  | 6/21/2016 |  | Retail |  | 4,147,948 |  |  | 705,423 |  |  | (1,175,073 | ) |  | 3,678,298 |
Dollar General |  | Litchfield, ME |  | 11/4/2016 |  | Retail |  | 1,281,812 |  |  | 116,302 |  |  | (125,762 | ) |  | 1,272,352 |
Dollar General |  | Wilton, ME |  | 11/4/2016 |  | Retail |  | 1,543,776 |  |  | 140,653 |  |  | (160,948 | ) |  | 1,523,481 |
Dollar General |  | Thompsontown, PA |  | 11/4/2016 |  | Retail |  | 1,199,860 |  |  | 106,730 |  |  | (120,834 | ) |  | 1,185,756 |
Dollar General |  | Mt. Gilead, OH |  | 11/4/2016 |  | Retail |  | 1,174,188 |  |  | 111,847 |  |  | (115,853 | ) |  | 1,170,182 |
Dollar General |  | Lakeside, OH |  | 11/4/2016 |  | Retail |  | 1,112,872 |  |  | 100,857 |  |  | (118,901 | ) |  | 1,094,828 |
Dollar General |  | Castalia, OH |  | 11/4/2016 |  | Retail |  | 1,102,086 |  |  | 86,408 |  |  | (115,524 | ) |  | 1,072,970 |
Dana |  | Cedar Park, TX |  | 12/27/2016 |  | Industrial |  | 8,392,906 |  |  | 1,210,874 |  |  | (1,492,171 | ) |  | 8,111,609 |
Northrop Grumman |  | Melbourne, FL |  | 3/7/2017 |  | Office |  | 12,382,991 |  |  | 1,341,199 |  |  | (2,185,956 | ) |  | 11,538,234 |
exp US Services |  | Maitland, FL |  | 3/27/2017 |  | Office |  | 6,056,668 |  |  | 388,248 |  |  | (609,311 | ) |  | 5,835,605 |
Harley |  | Bedford, TX |  | 4/13/2017 |  | Retail |  | 13,178,288 |  |  | — |  |  | (907,230 | ) |  | 12,271,058 |
Wyndham |  | Summerlin, NV |  | 6/22/2017 |  | Office |  | 10,406,483 |  |  | 669,232 |  |  | (815,730 | ) |  | 10,259,985 |
Williams Sonoma |  | Summerlin, NV |  | 6/22/2017 |  | Office |  | 8,079,612 |  |  | 550,486 |  |  | (746,900 | ) |  | 7,883,198 |
Omnicare |  | Richmond, VA |  | 7/20/2017 |  | Industrial |  | 7,262,747 |  |  | 281,442 |  |  | (587,875 | ) |  | 6,956,314 |
EMCOR |  | Cincinnati, OH |  | 8/29/2017 |  | Office |  | 5,960,610 |  |  | 463,488 |  |  | (424,764 | ) |  | 5,999,334 |
Husqvarna |  | Charlotte, NC |  | 11/30/2017 |  | Industrial |  | 11,840,200 |  |  | 1,013,948 |  |  | (756,557 | ) |  | 12,097,591 |
AvAir |  | Chandler, AZ |  | 12/28/2017 |  | Industrial |  | 27,357,900 |  |  | — |  |  | (1,417,062 | ) |  | 25,940,838 |
3M |  | DeKalb, IL |  | 3/29/2018 |  | Industrial |  | 14,762,819 |  |  | 2,356,361 |  |  | (2,231,246 | ) |  | 14,887,934 |
Cummins |  | Nashville, TN |  | 4/4/2018 |  | Office |  | 14,465,491 |  |  | 1,536,998 |  |  | (1,357,376 | ) |  | 14,645,113 |
Northrop Grumman Parcel |  | Melbourne, FL |  | 6/21/2018 |  | Land |  | 329,410 |  |  | — |  |  | — |  |  | 329,410 |
24 Hour Fitness |  | Las Vegas, NV |  | 7/27/2018 |  | Retail |  | 11,484,784 |  |  | 1,204,973 |  |  | (653,647 | ) |  | 12,036,110 |
Texas Health |  | Dallas, TX |  | 9/13/2018 |  | Office |  | 6,976,703 |  |  | 713,221 |  |  | (384,029 | ) |  | 7,305,895 |
Bon Secours |  | Richmond, VA |  | 10/31/2018 |  | Office |  | 10,042,551 |  |  | 800,356 |  |  | (526,238 | ) |  | 10,316,669 |
Costco |  | Issaquah, WA |  | 12/20/2018 |  | Retail |  | 27,292,418 |  |  | 2,765,136 |  |  | (1,352,612 | ) |  | 28,704,942 |
Taylor Fresh Foods |  | Yuma, AZ |  | 10/24/2019 |  | Industrial |  | 34,194,370 |  |  | 2,894,017 |  |  | (275,349 | ) |  | 36,813,038 |
Chevron Gas Station |  | San Jose, CA |  | 12/31/2019 |  | Retail |  | 4,054,759 |  |  | 145,577 |  |  | — |  |  | 4,200,336 |
Levins |  | Sacramento, CA |  | 12/31/2019 |  | Industrial |  | 4,429,390 |  |  | 221,927 |  |  | — |  |  | 4,651,317 |
Chevron Gas Station |  | Roseville, CA |  | 12/31/2019 |  | Retail |  | 3,648,571 |  |  | 136,415 |  |  | — |  |  | 3,784,986 |
Island Pacific Supermarket |  | Elk Grove, CA |  | 12/31/2019 |  | Retail |  | 2,560,311 |  |  | 197,495 |  |  | — |  |  | 2,757,806 |
Dollar General |  | Bakersfield, CA |  | 12/31/2019 |  | Retail |  | 4,899,714 |  |  | 261,630 |  |  | — |  |  | 5,161,344 |
Rite Aid |  | Lake Elsinore, CA |  | 12/31/2019 |  | Retail |  | 6,842,089 |  |  | 420,441 |  |  | — |  |  | 7,262,530 |
PMI Preclinical |  | San Carlos, CA |  | 12/31/2019 |  | Office |  | 9,672,174 |  |  | 408,225 |  |  | — |  |  | 10,080,399 |
EcoThrift |  | Sacramento, CA |  | 12/31/2019 |  | Retail |  | 5,550,226 |  |  | 273,846 |  |  | — |  |  | 5,824,072 |
GSA (MSHA) |  | Vacaville, CA |  | 12/31/2019 |  | Office |  | 3,112,076 |  |  | 243,307 |  |  | — |  |  | 3,355,383 |
PreK Education |  | San Antonio, TX |  | 12/31/2019 |  | Retail |  | 12,447,287 |  |  | 447,927 |  |  | — |  |  | 12,895,214 |
Dollar Tree |  | Morrow, GA |  | 12/31/2019 |  | Retail |  | 1,320,367 |  |  | 73,298 |  |  | — |  |  | 1,393,665 |
Dinan Cars |  | Morgan Hill, CA |  | 12/31/2019 |  | Industrial |  | 6,252,657 |  |  | — |  |  | — |  |  | 6,252,657 |
Solar Turbines |  | San Diego, CA |  | 12/31/2019 |  | Office |  | 7,133,241 |  |  | 284,026 |  |  | — |  |  | 7,417,267 |
Wood Group |  | San Diego, CA |  | 12/31/2019 |  | Office |  | 9,731,220 |  |  | 392,955 |  |  | — |  |  | 10,124,175 |
ITW Rippey |  | El Dorado Hills, CA |  | 12/31/2019 |  | Industrial |  | 7,071,143 |  |  | 304,387 |  |  | — |  |  | 7,375,530 |
Dollar General |  | Big Spring, TX |  | 12/31/2019 |  | Retail |  | 1,281,683 |  |  | 76,351 |  |  | — |  |  | 1,358,034 |
Gap |  | Rocklin, CA |  | 12/31/2019 |  | Office |  | 8,378,276 |  |  | 360,377 |  |  | — |  |  | 8,738,653 |
L-3 Communications |  | Carlsbad, CA |  | 12/31/2019 |  | Office |  | 11,631,857 |  |  | 454,035 |  |  | — |  |  | 12,085,892 |
Sutter Health |  | Rancho Cordova, CA |  | 12/31/2019 |  | Office |  | 29,555,055 |  |  | 1,616,610 |  |  | — |  |  | 31,171,665 |
Walgreens |  | Santa Maria, CA |  | 12/31/2019 |  | Retail |  | 5,223,442 |  |  | 335,945 |  |  | — |  |  | 5,559,387 |
|  |  |  |  |  |  |  | $ | 396,680,878 |  |  | $ | 27,266,610 |  |  | $ | (20,411,794 | ) |  | $ | 403,535,694 |
Acquisitions: Year Ended December 31, 2019 During the year ended December 31, 2019, the Company acquired the following real estate properties:
Property |  | Land |  | Buildings and Improvements |  | Tenant Origination and Absorption Costs |  | Above-Market Lease Intangibles |  | Below-Market Lease Intangibles |  | Total
REIT I Property Portfolio: |  |  |  |  |  |  |  |  |  |  |  |
Chevron Gas Station |  | $ | 3,787,021 |  |  | $ | 267,738 |  |  | $ | 145,577 |  |  | $ | 41,739 |  |  | $ | — |  |  | $ | 4,242,075 |
Levins |  | 1,404,863 |  |  | 3,024,527 |  |  | 221,927 |  |  | 26,469 |  |  | — |  |  | 4,677,786 |
Chevron Gas Station |  | 2,636,663 |  |  | 1,011,908 |  |  | 136,415 |  |  | 24,432 |  |  | — |  |  | 3,809,418 |
Island Pacific Supermarket |  | 676,981 |  |  | 1,883,330 |  |  | 197,495 |  |  | — |  |  | (76,351 | ) |  | 2,681,455 |
Dollar General |  | 1,099,458 |  |  | 3,800,256 |  |  | 261,630 |  |  | — |  |  | (41,739 | ) |  | 5,119,605 |
Rite Aid |  | 3,939,724 |  |  | 2,902,365 |  |  | 420,441 |  |  | 186,297 |  |  | — |  |  | 7,448,827 |
PMI Preclinical |  | 4,774,497 |  |  | 4,897,677 |  |  | 408,225 |  |  | 115,036 |  |  | — |  |  | 10,195,435 |
EcoThrift |  | 2,300,717 |  |  | 3,249,509 |  |  | 273,846 |  |  | — |  |  | (388,882 | ) |  | 5,435,190 |
GSA (MSHA) |  | 399,062 |  |  | 2,713,014 |  |  | 243,307 |  |  | — |  |  | (101,802 | ) |  | 3,253,581 |
PreK San Antonio |  | 963,044 |  |  | 11,484,243 |  |  | 447,927 |  |  | — |  |  | (28,504 | ) |  | 12,866,710 |
Dollar Tree |  | 159,829 |  |  | 1,160,538 |  |  | 73,298 |  |  | 10,180 |  |  | — |  |  | 1,403,845 |
Dinan Cars |  | 2,453,420 |  |  | 3,799,237 |  |  | — |  |  | — |  |  | — |  |  | 6,252,657 |
Solar Turbines |  | 2,483,960 |  |  | 4,649,281 |  |  | 284,026 |  |  | — |  |  | (108,928 | ) |  | 7,308,339 |
Amec Foster |  | 3,461,256 |  |  | 6,269,964 |  |  | 392,955 |  |  | — |  |  | — |  |  | 10,124,175 |
ITW Rippey |  | 787,945 |  |  | 6,283,198 |  |  | 304,387 |  |  | — |  |  | — |  |  | 7,375,530 |
Dollar General Big Spring |  | 103,838 |  |  | 1,177,845 |  |  | 76,351 |  |  | — |  |  | (127,252 | ) |  | 1,230,782 |
Gap |  | 2,076,754 |  |  | 6,301,522 |  |  | 360,377 |  |  | — |  |  | (68,207 | ) |  | 8,670,446 |
L-3 Communications |  | 3,552,878 |  |  | 8,078,979 |  |  | 454,035 |  |  | — |  |  | (174,081 | ) |  | 11,911,811 |
Sutter Health |  | 2,443,240 |  |  | 27,111,815 |  |  | 1,616,610 |  |  | 87,549 |  |  | — |  |  | 31,259,214 |
Walgreens |  | 1,832,430 |  |  | 3,391,012 |  |  | 335,945 |  |  | 272,829 |  |  | — |  |  | 5,832,216 |
|  | 41,337,580 |  |  | 103,457,958 |  |  | 6,654,774 |  |  | 764,531 |  |  | (1,115,746 | ) |  | 151,099,097 |
Taylor Fresh Foods |  | 4,312,016 |  |  | 29,882,353 |  |  | 2,894,017 |  |  | — |  |  | (11,526,976 | ) |  | 25,561,410 |
|  | $ | 45,649,596 |  |  | $ | 133,340,311 |  |  | $ | 9,548,791 |  |  | $ | 764,531 |  |  | $ | (12,642,722 | ) |  | $ | 176,660,507 |
Purchase price and other acquisition costs |  | $ | 176,660,507 |
Purchase deposit applied |  | (2,000,000 | )
Acquisition fees to affiliate related to Taylor Fresh Foods (Note 9) |  | (741,000 | )
Acquisition of real estate before financing |  | $ | 173,919,507 |
Capitalized acquisition fees paid to the Former Advisor for properties acquired during the year ended December 31, 2019 are as follows:
Property |  | Amount
Taylor Fresh Foods |  | $ | 741,000 |
The Company also paid the Former Advisor capitalized acquisition fees of $5,459 during the year ended December 31, 2019 related to additions to real estate investments. During the year ended December 31, 2019, the Company recognized $548,362 of total revenue related to the Taylor Fresh foods property. No revenue was recognized related to the 20 properties acquired in the Merger because the transaction closed on December 31, 2019. The noncancellable lease terms of the properties acquired during the year ended December 31, 2019 are as follows:
Property |  | Lease Expiration
Chevron Gas Station |  | 5/27/2025
Levins |  | 8/20/2023
Chevron Gas Station |  | 9/30/2025
Island Pacific Supermarket |  | 5/31/2025
Dollar General |  | 7/31/2028
Rite Aid |  | 2/25/2028
PMI Preclinical |  | 10/31/2025
EcoThrift |  | 2/28/2026
GSA (MSHA) |  | 8/24/2026
PreK San Antonio |  | 7/31/2021
Dollar Tree |  | 7/31/2025
Dinan Cars |  | 4/30/2023
Solar Turbines |  | 2/28/2021
Amec Foster |  | 7/31/2021
ITW Rippey |  | 8/1/2022
Dollar General Big Spring |  | 4/30/2030
Gap |  | 2/28/2023
L-3 Communications |  | 4/30/2022
Sutter Health |  | 10/31/2025
Walgreens |  | 2/28/2031
Taylor Fresh Foods |  | 9/30/2033
Year Ended December 31, 2018 During the year ended December 31, 2018, the Company acquired the following real estate properties:
Property |  | Land |  | Buildings and Improvements |  | Tenant Origination and Absorption Costs |  | Above-Market Lease Intangibles |  | Below-Market Lease Intangibles |  | Total
3M |  | $ | 758,780 |  |  | $ | 14,004,039 |  |  | $ | 2,356,361 |  |  | $ | — |  |  | $ | (1,417,483 | ) |  | $ | 15,701,697 |
Cummins |  | 3,347,959 |  |  | 11,117,531 |  |  | 1,536,998 |  |  | — |  |  | — |  |  | 16,002,488 |
Northrop Grumman Parcel |  | 329,410 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 329,410 |
24 Hour Fitness |  | 3,121,985 |  |  | 8,331,352 |  |  | 1,204,974 |  |  | — |  |  | — |  |  | 12,658,311 |
Texas Health |  | 1,827,914 |  |  | 5,148,789 |  |  | 713,221 |  |  | — |  |  | — |  |  | 7,689,924 |
Bon Secours |  | 1,658,659 |  |  | 8,383,892 |  |  | 800,356 |  |  | — |  |  | — |  |  | 10,842,907 |
Costco |  | 8,202,915 |  |  | 19,060,717 |  |  | 2,765,136 |  |  | — |  |  | — |  |  | 30,028,768 |
|  | $ | 19,247,622 |  |  | $ | 66,046,320 |  |  | $ | 9,377,046 |  |  | $ | — |  |  | $ | (1,417,483 | ) |  | $ | 93,253,505 |
Purchase price and other acquisition costs |  | $ | 93,253,505 |
Acquisition fees to affiliate |  | (2,702,043 | )
Acquisition of real estate before financing |  | $ | 90,551,462 |
Capitalized acquisition fees paid to the Former Advisor for properties acquired during the year ended December 31, 2018 are as follows:
Property |  | Amount
3M |  | $ | 456,000 |
Cummins |  | 465,000 |
Northrop Grumman Parcel |  | 9,000 |
24 Hour Fitness |  | 366,000 |
Texas Health |  | 222,750 |
Bon Secours |  | 313,293 |
Costco |  | 870,000 |
Total |  | $ | 2,702,043 |
The Company also paid the Former Advisor capitalized acquisition fees of $50,296 during the year ended December 31, 2018 related to additions to real estate investments. During the year ended December 31, 2018, the Company recognized $3,773,997 of total revenue related to these recently-acquired properties. The noncancellable lease terms of the properties acquired during the year ended December 31, 2018 are as follows:
Property |  | Lease Expiration
3M |  | 7/31/2022
Cummins |  | 2/28/2023
24 Hour Fitness |  | 3/31/2030
Texas Health |  | 12/31/2025
Bon Secours |  | 8/31/2026
Costco (1) |  | 7/31/2025
(1) | The tenant’s right to cancel the lease on July 31, 2023 was not determined to be probable for financial accounting purposes.
Asset Concentration The Company’s portfolio asset concentration as of December 31, 2019 and 2018 was as follows (greater than 10% of total assets):
|  | December 31, 2019 |  | December 31, 2018
Property and Location |  | Net Carrying Value |  | Percentage of Total Assets |  | Net Carrying Value |  | Percentage of Total Assets
AvAir, Chandler, AZ |  | $ | — |  |  | — |  | $ | 27,353,125 |  |  | 17.4%
Revenue Concentration The Company’s revenue concentration based on tenants representing greater than 10% of total revenues for the years ended December 31, 2019 and 2018 are as follows:
|  | 2019 |  | 2018
Property and Location |  | Revenue |  | Percentage of Total Revenue |  | Revenue |  | Percentage of Total Revenue
AvAir, Chandler, AZ |  | $ | 2,670,159 |  |  | 10.9% |  | $ | 2,100,000 |  |  | 19.9%
Northrop Grumman, Melbourne, FL |  | $ | — |  |  | — |  | $ | 1,162,274 |  |  | 11.0%
Operating Leases The Company’s real estate properties are primarily leased to tenants under triple-net leases for which terms and expirations vary. The Company monitors the credit of all tenants to stay abreast of any material changes in credit quality. The Company monitors tenant credit by (1) reviewing the credit ratings of tenants (or their parent companies or lease guarantors) that are rated by national recognized rating agencies; (2) reviewing financial statements and related metrics and information that are publicly available or that are required to be provided pursuant to the lease; (3) monitoring news reports and press releases regarding the tenants (or their parent companies or lease guarantors), and their underlying business and industry; and (4) monitoring the timeliness of rent collections. As of December 31, 2019, the future minimum contractual rent payments due under the Company’s operating leases, excluding any renewal periods, are as follows:
2020 | $ | 29,114,325 |
2021 | 27,866,428 |
2022 | 25,639,567 |
2023 | 22,401,061 |
2024 | 21,838,412 |
Thereafter | 75,964,673 |
| $ | 202,824,466 |
Intangibles As of December 31, 2019 and 2018, the Company’s intangible assets were as follows:
| December 31, 2019 |  | December 31, 2018
| Tenant Origination and Absorption Costs |  | Above-Market Lease Intangibles |  | Below-Market Lease Intangibles |  | Tenant Origination and Absorption Costs |  | Above-Market Lease Intangibles |  | Below-Market Lease Intangibles
Cost | $ | 27,266,610 |  |  | $ | 1,547,646 |  |  | $ | (15,713,975 | ) |  | $ | 17,717,819 |  |  | $ | 783,115 |  |  | $ | (3,071,253 | )
Accumulated amortization | (6,005,248 | ) |  | (295,912 | ) |  | 1,122,616 |  |  | (3,173,254 | ) |  | (198,867 | ) |  | 475,871 |
Net amount | $ | 21,261,362 |  |  | $ | 1,251,734 |  |  | $ | (14,591,359 | ) |  | $ | 14,544,565 |  |  | $ | 584,248 |  |  | $ | (2,595,382 | )
The intangible assets acquired in connection with these acquisitions have a weighted average amortization period of approximately 9.3 years as of December 31, 2019. As of December 31, 2019, 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
2020 | $ | 4,909,081 |  |  | $ | 197,933 |  |  | $ | (1,559,285 | )
2021 | 4,014,676 |  |  | 179,882 |  |  | (1,551,783 | )
2022 | 2,979,198 |  |  | 164,607 |  |  | (1,158,227 | )
2023 | 2,102,056 |  |  | 161,957 |  |  | (182,928 | )
2024 | 1,897,592 |  |  | 157,327 |  |  | (168,559 | )
Thereafter | 5,358,759 |  |  | 390,028 |  |  | (9,970,577 | )
| $ | 21,261,362 |  |  | $ | 1,251,734 |  |  | $ | (14,591,359 | )
Weighted-Average Remaining Amortization Period | 7.2 years |  |  | 7.7 years |  |  | 12.6 years |

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

X
- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration