INVESTMENT IN UNCONSOLIDATED ENTITY (FY)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

NOTE 4. INVESTMENT IN UNCONSOLIDATED ENTITY

The Company’s investment in unconsolidated entity as of June 30, 2021 and December 31, 2020 is as follows:

		June 30, 2021				December 31, 2020
The TIC Interest		$	9,987,703			$	10,002,368

The Company’s income from investment in unconsolidated entity for the three and six months ended June 30, 2021 and 2020, is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
The TIC Interest	$	74,834	$	125,658	$	147,302	$	146,411

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 June 30, 2021 and 2020, the Company received $82,588 and $169,158 in cash distributions, respectively, and $161,967 and $334,189 during the six months ended June 30, 2021 and 2020, respectively.

The following is summarized financial information for the Santa Clara property as of June 30, 2021 and December 31, 2020 and for the three and six months ended June 30, 2021 and 2020:

	June 30, 2021		December 31, 2020
Assets:
Real estate investments, net	$	29,406,115	$	29,906,146
Cash and cash equivalents		786,775		380,774
Other assets		50,041		164,684
Total assets	$	30,242,931	$	30,451,604
Liabilities:
Mortgage note payable, net	$	13,354,714	$	13,489,126
Below-market lease, net		2,733,780		2,806,973
Other liabilities		111,598		92,777
Total liabilities		16,200,092		16,388,876
Total equity		14,042,839		14,062,728
Total liabilities and equity	$	30,242,931	$	30,451,604

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Total revenues	$	676,936	$	751,653	$	1,350,912	$	1,349,573
Expenses:
Interest expense		138,036		140,906		275,642		282,609
Depreciation and amortization		250,015		250,680		500,030		499,898
Other expenses		185,964		187,246		372,652		365,703
Total expenses		574,015		578,832		1,148,324		1,148,210
Net income	$	102,921	$	172,821	$	202,588	$	201,363

NOTE 5. INVESTMENT IN UNCONSOLIDATED ENTITY

The Company’s investment in unconsolidated entity as of December 31, 2020 and 2019 is as follows:

	December 31,
	2020		2019
The TIC Interest	$	10,002,368	$	10,388,588

As discussed in Note 3, REIT I merged with and into the Company on December 31, 2019. The Company’s income (loss) from investments in unconsolidated entities for the years ended December 31, 2020 and 2019 is as follows:

	Years Ended December 31,
	2020			2019
The TIC Interest		$	296,780		$	296,691
REIT I			—			(62,643	)
Total		$	296,780		$	234,048

The TIC Interest

During 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired the approximate 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 Hagg Lane III, LLC (an approximate 3.9%). The manager of 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 property lease expiration date is March 16, 2026 and the lease provides for three five-year renewal options. 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, 2020 and 2019, the Company received $683,000 and $657,435 in cash distributions, respectively.

The following is summarized financial information for the Santa Clara property as of and for the years ended December 31, 2020 and 2019:

	December 31,
	2020		2019
Assets:
Real estate investments, net	$	29,906,146	$	30,858,240
Cash and cash equivalents		380,774		275,760
Other assets		164,684		228,770
Total assets	$	30,451,604	$	31,362,770

Liabilities:
Mortgage notes payable, net	$	13,489,126	$	13,746,635
Below-market lease, net		2,806,973		2,953,360
Other liabilities		92,777		68,587
Total liabilities		16,388,876		16,768,582
Total equity		14,062,728		14,594,188
Total liabilities and equity	$	30,451,604	$	31,362,770

	Years Ended December 31,
	2020		2019
Total revenue	$	2,694,874	$	2,705,126

Expenses:
Depreciation and amortization		999,929		993,564
Interest expense		565,778		574,086
Other expenses		721,279		731,044
Total expenses		2,286,986		2,298,694
Net income	$	407,888	$	406,432

REIT I

Prior to the Merger on December 31, 2019, the Company had an approximate 4.8% ownership interest in REIT I. The Company recorded its share of loss of REIT I based on REIT I’s results of operations for the year ended December 31, 2019. During the year ended December 31, 2019, the Company received $372,351 in cash distributions related to its investment in REIT I. The following is REIT I's summarized results of operations for the year ended December 31, 2019:

	Year Ended December 31, 2019
Total revenue	$	13,132,226

Expenses:
Depreciation and amortization		5,787,709
Interest expense		3,425,625
Other expenses		5,342,365
Total expenses		14,555,699
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	)