UNCONSOLIDATED INVESTMENT IN REAL ESTATE PROPERTY

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

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