Recent Real Estate Transactions

3 Months Ended

Mar. 31, 2016

3. RECENT REAL ESTATE TRANSACTIONS

During the three months ended March 31, 2016, NetREIT Dubose and the other Model Home entities acquired twenty four Model Home properties in Texas and leased them back to the homebuilders. The purchase price for the properties was $7.4 million. The purchase price paid was through cash payments of $2.2 million and promissory notes of $5.2 million.

The Company allocated the purchase price of the properties acquired during the three months ended March 31, 2016 as follows:

			Buildings		Total
	Land		and Other		Purchase Price
Model Homes Properties	$	859,785	$	6,539,760	$	7,399,545
	$	859,785	$	6,539,760	$	7,399,545

During the three months ended March 31, 2016, the Company disposed of four Model Homes for approximately $1.3 million and approximately $460,000 in mortgage notes payable were repaid in connection with these sales. The Company recognized a gain of $175,000 related to the sale of these Model Homes.