INVESTMENT IN UNCONSOLIDATED ENTITY

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

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