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REAL ESTATE ASSETS
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Real Estate Assets    
REAL ESTATE ASSETS

4. REAL ESTATE ASSETS

 

The Company owns a diverse portfolio of real estate assets. The primary types of properties the Company invests in are office, industrial, retail, and triple-net leased model home properties. We have five commercial properties located in Colorado, four in North Dakota, two in Southern California and one in Texas. Our model home properties are located in four states. As of September 30, 2021, the Company owned or had an equity interest in:

 

  ● Seven office buildings and one industrial property (“Office/Industrial Properties”) which total approximately 724,000 rentable square feet;
     
  ● Four retail shopping centers (“Retail Properties”) which total approximately 121,000 rentable square feet; and
     
  ● 85 model home residential properties (“Model Homes” or “Model Home Properties”), totaling approximately 276,000 square feet, leased back on a triple-net basis to homebuilders that are owned by six affiliated limited partnerships and one wholly-owned corporation, all of which we control.

 

 

A summary of the properties owned by the Company as of September 30, 2021 and December 31, 2020 is as follows:

 SCHEDULE OF REAL ESTATE PROPERTIES

   Date     Real estate assets, net (in thousands) 
Property Name  Acquired  Location  2021   2020 
Garden Gateway Plaza (1)  March 2007  Colorado Springs, Colorado   —   $11,465 
World Plaza (2)  September 2007  San Bernardino, California   9,272    9,272 
Executive Office Park (1)  July 2008  Colorado Springs, Colorado   —    5,106 
Waterman Plaza (1)  August 2008  San Bernardino, California   —    3,500 
Genesis Plaza (3)  August 2010  San Diego, California   8,412    8,651 
Dakota Center  May 2011  Fargo, North Dakota   8,694    8,597 
Grand Pacific Center  March 2014  Bismarck, North Dakota   5,525    5,684 
Arapahoe Center  December 2014  Centennial, Colorado   8,901    9,233 
Union Town Center  December 2014  Colorado Springs, Colorado   9,212    9,345 
West Fargo Industrial  August 2015  Fargo, North Dakota   6,996    7,061 
300 N.P.  August 2015  Fargo, North Dakota   3,218    3,280 
Research Parkway  August 2015  Colorado Springs, Colorado   2,392    2,438 
One Park Center  August 2015  Westminster, Colorado   8,072    8,586 
Highland Court (1) (4)  August 2015  Centennial, Colorado   —    10,500 
Shea Center II  December 2015  Highlands Ranch, Colorado   20,340    21,026 
Mandolin (4)  August 2021  Houston, Texas   4,899    — 
Presidio Property Trust, Inc. properties         95,933    123,744 
Model Home properties (5)  2014 - 2020  TX, FL, IL, WI   29,955    42,510 
Total real estate assets and lease intangibles, net        $125,888   $166,254 

 

(1) This property was sold during the nine months ended September 30, 2021.

 

(2) This property is held for sale as of September 30, 2021.

 

(3) Genesis Plaza is owned by two tenants-in-common, each of which owns 57% and 43%, respectively, and we beneficially own an aggregate of 76.4%.

 

(4) A portion of the proceeds from the sale of Highland Court were used in like-kind exchange transactions pursued under Section 1031 of the Internal Revenue for the acquisition of our Mandolin property. Mandolin is owned by NetREIT Palm Self-Storage LP, through its wholly owned subsidiary NetREIT Highland LLC, and the Company is the sole general partner and owns 61.3% of NetREIT Palm Self-Storage LP.

 

(5) Includes three Model Homes listed as held for sale as of September 30, 2021.

 

 

4. REAL ESTATE ASSETS

 

The Company owns a diverse portfolio of real estate assets. The primary types of properties the Company invests in are office, industrial, retail, and NNN leased model home properties located primarily in Southern California and Colorado, with four properties located in North Dakota. Our model home properties are located in six states. As of December 31, 2020, the Company owned or had an equity interest in:

 

  ● Ten office buildings and one industrial buildings (“Office/Industrial Properties”) which total approximately 982,796 rentable square feet;

 

  ● Four retail shopping centers (“Retail Properties”) which total approximately 131,722 rentable square feet;

 

  ● 118 homes owned by our affiliated limited partnerships and one corporation (“Model Homes” or “Model Home Properties”) leased back on a triple-net basis to homebuilders that are owned by six affiliated limited partnerships and one wholly-owned corporation.

 

The Company’s real estate assets consisted of the following as of December 31, 2020 and 2019:

 

   Date      Real estate assets, net (in thousands) 
Property Name  Acquired   Location  2020   2019 
Garden Gateway Plaza (1)   March 2007   Colorado Springs, Colorado  $11,465   $11,428 
World Plaza (1)   September 2007   San Bernardino, California   9,272    8,305 
Executive Office Park (3)   July 2008   Colorado Springs, Colorado   5,106    7,723 
Waterman Plaza (1)   August 2008   San Bernardino, California   3,500    4,889 
Genesis Plaza   August 2010   San Diego, California   8,651    8,789 
Dakota Center   May 2011   Fargo, North Dakota   8,597    8,855 
Grand Pacific Center   March 2014   Bismarck, North Dakota   5,684    5,914 
Union Terrace (4)   August 2014   Lakewood, CO   —    8,425 
Centennial Tech Center (4)   December 2014   Colorado Springs, Colorado   —    13,132 
Arapahoe Center   December 2014   Centennial, Colorado   9,233    9,748 
Union Town Center   December 2014   Colorado Springs, Colorado   9,345    9,612 
West Fargo Industrial   August 2015   Fargo, North Dakota   7,061    7,212 
300 N.P.   August 2015   Fargo, North Dakota   3,280    3,405 
Research Parkway   August 2015   Colorado Springs, Colorado   2,438    2,512 
One Park Center   August 2015   Westminster, Colorado   8,586    8,518 
Highland Court (1)   August 2015   Centennial, Colorado   10,500    11,421 
Shea Center II   December 2015   Highlands Ranch, Colorado   21,026    21,853 
Presidio Property Trust, Inc. properties           123,744    151,741 
Model Home properties (2)   2014 - 2020   AZ, FL, IL, PA, TX, WI   42,510    48,466 
Total real estate assets and lease intangibles, net          $166,254   $200,207 

 

(1) Property held for sale as of December 31, 2020.

 

(2) Includes seven Model Homes that are listed as held for sale as of December 31, 2020.

 

(3) One of four buildings within this property was sold as of December 31, 2020.

 

(4) This property was sold during the year ended December 31, 2020.

 

 

The Company’s commercial properties are leased to tenants under non-cancelable operating leases for which terms and expirations vary. Future minimum rental revenues under existing leases on Office/Industrial and Retail Properties as of December 31, 2020 are expected to be as follows:

      
2021   $3,259,261 
2022    3,406,500 
2023    2,564,601 
2024    1,211,331 
2025    1,526,142 
Thereafter    2,477,552 
Totals   $14,445,387 

 

The Company generally rents Model Home Properties to homebuilders under non-cancelable lease agreements with a term of 18 months with an option to extend in six months increments. Future minimum rental revenues under existing leases on Model Home Properties as of December 31, 2020 are expected to be as follows:

 

      
2021   $2,784,108 
2022    696,768 
Totals   $3,480,876