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UNCONSOLIDATED INVESTMENT IN REAL ESTATE PROPERTY | 6 Months Ended
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Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract] |
UNCONSOLIDATED INVESTMENT IN REAL ESTATE PROPERTY | UNCONSOLIDATED INVESTMENT IN REAL ESTATE PROPERTY The Company’s investment in unconsolidated property as of June 30, 2023 and December 31, 2022 is as follows:
|  | June 30, 2023 |  | December 31, 2022
The TIC Interest |  | $ | 10,011,347 |  |  | $ | 10,007,420 |
The Company’s income from investment in unconsolidated property for the three and six months ended June 30, 2023 and 2022 is as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
The TIC Interest |  | $ | 72,774 |  |  | $ | 66,868 |  |  | $ | 128,340 |  |  | $ | 162,332 |
TIC Interest During 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired an approximate 72.7% interest in a 91,740 square foot industrial property in Santa Clara, California in a tenants-in-common ownership structure which requires a unanimous vote for significant decisions about the property. 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 was a member of the Company's board of directors from December 2019 to December 2021. The interest in the Santa Clara property over which the Company has the ability to exercise significant influence, but for which the Company does not have financial or operating control is accounted for using the equity method of accounting. The Company receives approximately 72.7% of the cash flow distributions and recognizes approximately 72.7% of the results of operations for this property. During the three months ended June 30, 2023 and 2022, the Company received $58,718 and $51,786 in cash distributions, respectively, and received cash distributions of $124,414 and $147,153 during the six months ended June 30, 2023 and 2022, respectively. The following is summarized financial information for the Santa Clara property as of June 30, 2023 and December 31, 2022 and for the three and six months ended June 30, 2023 and 2022:
|  | June 30, 2023 |  | December 31, 2022
Assets: |  |  |  |
Real estate investments, net |  | $ | 29,042,413 |  |  | $ | 29,294,081 |
Cash and cash equivalents |  | 679,755 |  |  | 300,405 |
Other assets |  | 1,370 |  |  | 43,159 |
Total assets |  | $ | 29,723,538 |  |  | $ | 29,637,645 |
Liabilities: |  |  |  |
Mortgage note payable, net |  | $ | 12,790,723 |  |  | $ | 12,936,929 |
Below-market lease, net |  | 2,441,006 |  |  | 2,514,199 |
Other liabilities |  | 722,937 |  |  | 424,662 |
Total liabilities |  | 15,954,666 |  |  | 15,875,790 |
Total equity |  | 13,768,872 |  |  | 13,761,855 |
Total liabilities and equity |  | $ | 29,723,538 |  |  | $ | 29,637,645 |
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Total revenues |  | $ | 677,049 |  |  | $ | 676,780 |  |  | $ | 1,343,195 |  |  | $ | 1,391,758 |
Expenses: |  |  |  |  |  |  |  |
Depreciation and amortization |  | 255,906 |  |  | 261,956 |  |  | 522,958 |  |  | 523,912 |
Interest expense |  | 131,938 |  |  | 134,968 |  |  | 263,263 |  |  | 269,262 |
Other expenses |  | 189,118 |  |  | 187,890 |  |  | 378,847 |  |  | 375,324 |
Total expenses |  | 576,962 |  |  | 584,814 |  |  | 1,165,068 |  |  | 1,168,498 |
Net income |  | $ | 100,087 |  |  | $ | 91,966 |  |  | $ | 178,127 |  |  | $ | 223,260 |

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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 -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
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