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INVESTMENT IN UNCONSOLIDATED ENTITY | 9 Months Ended
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Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT IN UNCONSOLIDATED ENTITY | INVESTMENT IN UNCONSOLIDATED ENTITY The Company’s investment in unconsolidated entity as of September 30, 2021 and December 31, 2020 is as follows:
|  | September 30, 2021 |  | December 31, 2020
The TIC Interest |  | $ | 9,977,144 |  |  | $ | 10,002,368 |
The Company’s income from investment in unconsolidated entity for the three and nine months ended September 30, 2021 and 2020 is as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
The TIC Interest |  | $ | 75,403 |  |  | $ | 92,617 |  |  | $ | 222,705 |  |  | $ | 239,028 |
TIC Interest During 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired an approximate 72.7% interest in an industrial property in Santa Clara, California. The remaining approximate 27.3% of undivided interest in the Santa Clara property is held by Hagg Lane II, LLC (an approximate 23.4% interest) and Hagg Lane III, LLC (an approximate 3.9% interest). The manager of both Hagg Lane II, LLC and Hagg Lane III, LLC became a member of the Company's board of directors 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 three months ended September 30, 2021 and 2020, the Company received $85,962 and $207,950 in cash distributions, respectively, and $247,929 and $542,140 during the nine months ended September 30, 2021 and 2020, respectively. The following is summarized financial information for the Santa Clara property as of September 30, 2021 and December 31, 2020 and for the three and nine months ended September 30, 2021 and 2020:
|  | September 30, 2021 |  | December 31, 2020
Assets: |  |  |  |
Real estate investments, net |  | $ | 29,510,151 |  |  | $ | 29,906,146 |
Cash and cash equivalents |  | 670,458 |  |  | 380,774 |
Other assets |  | 176,583 |  |  | 164,684 |
Total assets |  | $ | 30,357,192 |  |  | $ | 30,451,604 |
Liabilities: |  |  |  |
Mortgage note payable, net |  | $ | 13,287,876 |  |  | $ | 13,489,126 |
Below-market lease, net |  | 2,697,183 |  |  | 2,806,973 |
Other liabilities |  | 343,815 |  |  | 92,777 |
Total liabilities |  | 16,328,874 |  |  | 16,388,876 |
Total equity |  | 14,028,318 |  |  | 14,062,728 |
Total liabilities and equity |  | $ | 30,357,192 |  |  | $ | 30,451,604 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Total revenues |  | $ | 683,160 |  |  | $ | 697,851 |  |  | $ | 2,034,072 |  |  | $ | 2,047,424 |
Expenses: |  |  |  |  |  |  |  |
Interest expense |  | 138,616 |  |  | 141,935 |  |  | 414,258 |  |  | 424,544 |
Depreciation and amortization |  | 250,754 |  |  | 250,015 |  |  | 750,784 |  |  | 749,913 |
Other expenses |  | 190,086 |  |  | 178,522 |  |  | 562,738 |  |  | 544,225 |
Total expenses |  | 579,456 |  |  | 570,472 |  |  | 1,727,780 |  |  | 1,718,682 |
Net income |  | $ | 103,704 |  |  | $ | 127,379 |  |  | $ | 306,292 |  |  | $ | 328,742 |

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- 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 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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- References No definition available. + Details
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