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DEBT (Tables) | 9 Months Ended
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Sep. 30, 2021
Debt Disclosure [Abstract] |
Schedule of Debt | As of September 30, 2021 and December 31, 2020, the Company’s mortgage notes payable consisted of the following:
Collateral |  | 2021 Principal Amount |  | 2020 Principal Amount |  | Contractual Interest Rate (1) |  | Effective Interest Rate (1) |  | Loan Maturity
Accredo property |  | $ | 8,538,000 |  |  | $ | 8,538,000 |  |  | 3.80% |  | 3.80% |  | 8/1/2025
Six Dollar General properties |  | 3,693,074 |  |  | 3,747,520 |  |  | 4.69% |  | 4.69% |  | 4/1/2022
Dana property |  | — |  |  | 4,466,865 |  |  | 4.56% |  | 4.56% |  | 4/1/2023
Northrop Grumman property (8) |  | 6,971,012 |  |  | 5,518,589 |  |  | 3.35% |  | 3.35% |  | 5/21/2031
exp US Services property |  | 3,272,333 |  |  | 3,321,931 |  |  | (4) |  | 4.25% |  | 11/17/2024
Harley Davidson property (2) |  | 6,525,824 |  |  | — |  |  | 4.25% |  | 4.25% |  | 9/1/2024
Wyndham property (3) |  | 5,522,100 |  |  | 5,607,000 |  |  | One-month LIBOR + 2.05% |  | 4.34% |  | 6/5/2027
Williams Sonoma property (3) |  | 4,368,000 |  |  | 4,438,200 |  |  | One-month LIBOR + 2.05% |  | 4.34% |  | 6/5/2022
Omnicare property |  | 4,130,640 |  |  | 4,193,171 |  |  | 4.36% |  | 4.36% |  | 5/1/2026
EMCOR property |  | 2,771,646 |  |  | 2,811,539 |  |  | 4.35% |  | 4.35% |  | 12/1/2024
Husqvarna property |  | 6,379,182 |  |  | 6,379,182 |  |  | (5) |  | 4.60% |  | 2/20/2028
AvAir property |  | 19,950,000 |  |  | 19,950,000 |  |  | 3.80% |  | 3.80% |  | 8/1/2025
3M property |  | 8,058,500 |  |  | 8,166,000 |  |  | One-month LIBOR + 2.25% |  | 5.09% |  | 3/29/2023
Cummins property |  | 8,222,700 |  |  | 8,332,200 |  |  | One-month LIBOR + 2.25% |  | 5.16% |  | 4/4/2023
Texas Health property |  | 4,304,825 |  |  | 4,363,203 |  |  | 4.00% |  | 4.00% |  | 12/5/2024
Bon Secours property |  | 5,124,127 |  |  | 5,180,552 |  |  | 5.41% |  | 5.41% |  | 9/15/2026
Costco property |  | 18,850,000 |  |  | 18,850,000 |  |  | 4.85% |  | 4.85% |  | 1/1/2030
Taylor Fresh Foods |  | 12,350,000 |  |  | 12,350,000 |  |  | 3.85% |  | 3.85% |  | 11/1/2029
Levins property (6) |  | 2,671,067 |  |  | 2,032,332 |  |  | 3.75% |  | 3.75% |  | 2/16/2026
Dollar General Bakersfield property (6) |  | 2,244,201 |  |  | 2,268,922 |  |  | 3.65% |  | 3.65% |  | 2/16/2028
Labcorp property (6) |  | 5,342,133 |  |  | 4,020,418 |  |  | 3.75% |  | 3.75% |  | 2/16/2026
GSA (MSHA) property (6) |  | 1,728,428 |  |  | 1,752,092 |  |  | 3.65% |  | 3.65% |  | 2/16/2026
PreK Education property (7) |  | 4,957,705 |  |  | 5,037,846 |  |  | 4.25% |  | 4.25% |  | 12/1/2021
Solar Turbines, Amec Foster, ITW Rippey properties (7) |  | 9,044,276 |  |  | 9,214,700 |  |  | 3.35% |  | 3.35% |  | 11/1/2026
Dollar General Big Spring property (7) |  | 590,962 |  |  | 599,756 |  |  | 4.50% |  | 4.50% |  | 4/1/2022
Gap property (7) |  | 3,512,484 |  |  | 3,569,990 |  |  | 4.15% |  | 4.15% |  | 8/1/2023
L3Harris property (8) |  | 6,260,223 |  |  | 5,185,929 |  |  | 3.35% |  | 3.35% |  | 5/21/2031
Sutter Health property (7) |  | 13,669,395 |  |  | 13,879,655 |  |  | 4.50% |  | 4.50% |  | 3/9/2024
Walgreens property (7) |  | 3,094,060 |  |  | 3,172,846 |  |  | 4.25% |  | 4.25% |  | 7/16/2030
Total mortgage notes payable |  | 182,146,897 |  |  | 176,948,438 |  |  |  |  |  |  |
Plus unamortized mortgage premium, net (9) |  | 239,979 |  |  | 447,471 |  |  |  |  |  |  |
Less unamortized deferred financing costs |  | (1,472,537) |  |  | (1,469,991) |  |  |  |  |  |  |
Mortgage notes payable, net |  | $ | 180,914,339 |  |  | $ | 175,925,918 |  |  |  |  |  |  |
(1)Contractual interest rate represents the interest rate in effect under the mortgage note payable as of September 30, 2021. Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2021, consisting of the contractual interest rate and the effect of the interest rate swap, if applicable (see Note 8 for further information regarding the Company’s derivative instruments). (2)Reclassified to mortgage note payable at June 30, 2021 from mortgage note payable related to real estate investments held for sale as of December 31, 2020 due to a subsequent decision not to sell the real estate investment property securing the loan which was reclassified back to assets held and used from assets held for sale (see Note 3 for additional information). (3)The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The loans are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the loans, is an event of default under the terms of both loans. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the loans so that the loan to value ratio is no more than 60%. (4)The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate becomes the U.S. Treasury Bill index rate plus 3.25%. (5)The initial contractual interest rate is 4.60% through February 20, 2023 and then the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% through February 20, 2028. (6)The mortgage note as of September 30, 2021 was refinanced on March 5, 2021 with a new lender and terms. The mortgage note as of December 31, 2020 was acquired through the Merger on December 31, 2019. (7)The loan was acquired through the Merger on December 31, 2019. (8)The loans on the Northrop Grumman and L3Harris properties were refinanced during the second quarter of 2021. The initial contractual interest rate is 3.35% through June 1, 2026 and then the Prime Rate in effect as of June 1, 2026 plus 0.25% through May 21, 2031; provided that the second fixed interest rate will not be lower than 3.35% per annum. (9)Represents unamortized net mortgage premium acquired through the Merger.
Mortgage Notes Payable | The following summarizes the face value, carrying amount and fair value of the Company’s mortgage notes payable (Level 3 measurement) as of September 30, 2021 and December 31, 2020:
|  | September 30, 2021 |  | December 31, 2020
|  | Face Value |  | Carrying Value |  | Fair Value |  | Face value |  | Carrying Value |  | Fair Value
Mortgage notes payable |  | $ | 182,146,897 |  |  | $ | 180,914,339 |  |  | $ | 183,304,467 |  |  | $ | 176,948,438 |  |  | $ | 175,925,918 |  |  | $ | 177,573,106 |
The following table summarizes the Company's mortgage notes payable related to real estate investments held for sale as of December 31, 2020:
Collateral |  | December 31, 2020
Harley Davidson property |  | $ | 6,623,346 |
EcoThrift property |  | 2,573,509 |
Total |  | 9,196,855 |
Plus unamortized mortgage premium |  | 1,550 |
Less deferred financing costs |  | (109,967) |
Mortgage notes payable, net |  | $ | 9,088,438 |
Schedule of Line of Credit Facilities | The details of the Company's credit facilities as of September 30, 2021 and December 31, 2020 follow:
|  | September 30, 2021 |  | December 31, 2020
Credit facility |  | $ | — |  |  | $ | 6,000,000 |
Less unamortized deferred financing costs |  | — |  |  | (21,724) |
Credit facility, net |  | $ | — |  |  | $ | 5,978,276 |
Maturities of Long-term Debt | The following summarizes the future principal repayments of the Company’s mortgage notes payable and credit facility as of September 30, 2021:
|  | Mortgage Notes Payable |  | Credit Facility |  | Total
October through December 2021 |  | $ | 5,578,530 |  |  | $ | — |  |  | $ | 5,578,530 |
2022 |  | 11,173,350 |  |  | — |  |  | 11,173,350 |
2023 |  | 22,204,003 |  |  | — |  |  | 22,204,003 |
2024 |  | 31,565,888 |  |  | — |  |  | 31,565,888 |
2025 |  | 28,970,170 |  |  | — |  |  | 28,970,170 |
2026 |  | 26,484,067 |  |  | — |  |  | 26,484,067 |
Thereafter |  | 56,170,889 |  |  | — |  |  | 56,170,889 |
Total principal |  | 182,146,897 |  |  | — |  |  | 182,146,897 |
Plus unamortized mortgage premium, net of unamortized discount |  | 239,979 |  |  | — |  |  | 239,979 |
Less deferred financing costs |  | (1,472,537) |  |  | — |  |  | (1,472,537) |
Net principal |  | $ | 180,914,339 |  |  | $ | — |  |  | $ | 180,914,339 |
Interest Expense | The following is a reconciliation of the components of interest expense for the three and nine months ended September 30, 2021 and 2020:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Mortgage notes payable: |  |  |  |  |  |  |  |
Interest expense |  | $ | 1,812,254 |  |  | $ | 2,154,363 |  |  | $ | 5,638,890 |  |  | $ | 6,454,546 |
Amortization of deferred financing costs and mortgage premium, net |  | 141,235 |  |  | 435,179 |  |  | 355,661 |  |  | 693,810 |
Prepayment penalties |  | — |  |  | 190,574 |  |  | 23,900 |  |  | 237,574 |
(Gain) loss on interest rate swaps (1) |  | (166,539) |  |  | (231,207) |  |  | (586,782) |  |  | 1,164,490 |
Credit facilities: |  |  |  |  |  |  |  |
Interest expense |  | 27,486 |  |  | 128,333 |  |  | 169,571 |  |  | 449,791 |
Amortization of deferred financing costs |  | 16,605 |  |  | 42,288 |  |  | 60,468 |  |  | 117,624 |
Other |  | 504 |  |  | 12,998 |  |  | 49,622 |  |  | 78,226 |
Total interest expense |  | $ | 1,831,545 |  |  | $ | 2,732,528 |  |  | $ | 5,711,330 |  |  | $ | 9,196,061 |
(1) Includes unrealized (gain) loss on interest rate swaps of $(166,338) and $(272,912) for the three months ended September 30, 2021 and 2020, respectively, and $(684,057) and $1,019,840 for the nine months ended September 30, 2021 and 2020, respectively (see Note 8 for more details). Accrued interest payable of $54,980 and $45,636 as of September 30, 2021 and December 31, 2020, respectively, represents the unsettled portion of the interest rate swaps for the period from origination of the interest rate swap through the respective balance sheet dates.

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