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Subsequent Event | 9 Months Ended
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Sep. 30, 2021
Subsequent Events [Abstract] |
Subsequent Event | Note 12 – Subsequent Event On October 5, 2021, the Company awarded Mr. Russell as part of his services rendered in connection with the equity offering, a bonus of 10,000 shares and a $125,000 cash bonus. On October 28, 2021, we executed a purchase and sale agreement for the acquisition of a 30,000 square-foot single-tenant retail building in Grand Junction, Colorado for total consideration of approximately $4.7 million. It is anticipated that the acquisition of this property will be funded by a combination of debt and equity. The building is occupied by Best Buy with approximately 5.5 years remaining on their primary lease term and annualized base rent of approximately $353,000. The transaction is subject to customary closing conditions and due diligence. On October 27, 2021, we executed a purchase and sale agreement for the acquisition of a 11,000 square-foot single-tenant retail building in Chicago, Illinois for total consideration of approximately $3.1 million. It is anticipated that the acquisition of this property will be funded by a combination of debt and equity. The building is occupied by Fresenius Medical Care with approximately 5 years remaining on their primary lease term and annualized base rent of approximately $224,000. The transaction is subject to customary closing conditions and due diligence. On October 11, 2021, we executed a contribution and subscription agreement for the acquisition of a 2,600 square-foot single-tenant retail building in Tampa, Florida for total consideration of approximately $2.2 million. It is anticipated that the acquisition of this property will be funded by a combination of the issuance of approximately $1.1 million worth of operating partnership units of Generation Income Properties LP and debt of approximately $1.1 million. The building is occupied by Starbucks with approximately 0.5 years remaining on their primary lease term and annualized base rent of approximately $135,000. The transaction is subject to customary closing conditions and due diligence. On November 11, 2021, we executed a purchase and sale agreement for the acquisition of a leasehold portfolio of three single-tenant retail buildings totaling 12,900 square-feet, in Austin Texas and San Marcos Texas for total consideration of approximately $8 million. It is anticipated that the acquisition of this property will be funded by a combination of debt and equity. The three buildings are occupied by 7-Eleven, Inc.. The portfolio has an average term of approximately 9 years remaining on its initial leasehold term and an average of 4 years remaining on the initial ground lease term. The leasehold portfolio has an annualized base rental income of approximately $1.1 million, with ground rent expense of approximately $511,000 annually. On October 26, 2021, the Operating Partnership entered into a Commitment Letter with American Momentum Bank (the “Lender”) for a $25 million master credit facility (the “Facility”) to be used for the acquisition of income producing real estate properties. Borrowings under the Facility will accrue interest at a variable rate equal to the Wall Street Journal Prime rate, adjusted monthly, subject to a floor interest rate of 3.25% per annum. At each loan closing under the Facility, the borrower shall pay the Lender a commitment fee equal to 0.50% of the applicable loan amount. Each loan will have an interest-only payment term for twenty-four months from the applicable loan closing date and all interest and principal outstanding shall be due and payable in full two years from the applicable loan closing date. Each loan will be secured by the real estate property acquired and the associated rental income and payment will be guaranteed by the Operating Partnership. David Sobelman, the Company’s Chairman, President and Chief Executive Officer, will be required to execute a non-recourse guarantee in connection with each loan that is subject to standard “bad-boy” carve out provisions. Each loan agreement under the Facility will require the borrower to maintain a debt service coverage ratio of not less than 1.50 to 1.00 over the term of the loan and will contain customary affirmative covenants, negative covenants and events of default. Should any event of default occur, the loan commitments under the Facility may be terminated and any outstanding borrowings, together with accrued interest, could be declared immediately due and payable. The initial loan under the Facility must close on or before December 31, 2021 and all loans under the Facility must close within two years after the closing date of the initial loan. The Facility is voidable at the option of the Lender in specified circumstances, including a material adverse change in the Company’s financial condition and upon any changes in management of the Company that are unacceptable to the Lender. On October 6, 2021, the Company announced that its Board of Directors on October 5, 2021 authorized a $0.054 per share cash distribution for shareholders of record of the Company’s common stock as of October 15, 2021, November 15, 2021 and December 15, 2021, which is expected to be paid on or about October 30, 2021, November 30, 2021, and December 30, 2021, respectively. David Sobelman, the Company’s president and founder, waived his right to receive a distribution for this period. The Company also announced that it was also paying its GIP LP unit holders held by third parties a similar $0.054 per unit cash distribution.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -URI http://asc.fasb.org/topic&trid=2122774 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6842918&loc=SL6314017-165662 + Details
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