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Mortgage Loans | 6 Months Ended
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Jun. 30, 2022
Debt Disclosure [Abstract] |
Mortgage Loans | Note 10 – Mortgage Loans On April 1, 2022, the Company entered into two loan agreements with an aggregate balance of $13.5 million as of June 30, 2022 to refinance seven of the Company's properties. The loan agreements consist of one loan in the amount of $11.4 million secured by six properties, and one loan in the amount of $2.1 million on the property held in the tenant in common investment at an interest rate of 3.85% from April 1, 2022 through and until March 31, 2027. Effective April 1, 2027 and through the maturity date of March 31, 2032, the interest rate adjusts to the 5-year Treasury plus 2.5% and is subject to a floor of 3.85%. The Company’s CEO entered into a guaranty agreement pursuant to which he guaranteed the payment obligations under the promissory notes if they become due as a result of certain “bad-boy” provisions, individually and on behalf of the Operating Partnership. During the three months ended June 30, 2022, the Company incurred a loss on debt extinguishment of $144,029 related to the write off of unamortized debt issuance costs previously incurred on these mortgage loans that were refinanced in addition to a prepayment penalty incurred of $21,000. The Company had the following promissory notes outstanding as of June 30, 2022 and December 31, 2021, respectively:
Mortgage Loans Secured By (Tenant-Location) |  | Loan Amount |  |  | Interest Rate |  |  | Maturity Date |  | June 30, 2022 |  |  | December 31, 2021 |  |  | Debt Service Coverage Ratios ("DSCR") Required |
7-11 - Washington, DC; Starbucks-South Tampa, FL; and Pratt & Whitney-Huntsville, AL |  | $ | 11,287,500 |  | * |  | 4.17 | % |  | 3/6/2030 |  | $ | 11,054,353 |  |  | $ | 11,150,130 |  |  |  | 1.25 |
GSA & Maersk - Norfolk, Virginia |  |  | 8,260,000 |  |  |  | 3.50 | % |  | 9/30/2024 |  |  | 7,691,504 |  |  |  | 7,805,524 |  |  |  | 1.25 |
PRA Holdings, Inc. - Norfolk, Virginia |  |  | 5,216,749 |  |  |  | 3.50 | % |  | 10/23/2024 |  |  | 4,809,481 |  |  |  | 4,889,670 |  |  |  | 1.25 |
Sherwin-Williams - Tampa, Florida |  |  | 1,286,664 |  |  |  | 3.72 | % | *** | 8/10/2028 |  |  | 1,286,664 |  |  |  | 1,286,664 |  |  |  | 1.20 |
GSA - Manteo, North Carolina |  |  | 928,728 |  |  |  | 3.85 | % | ** | 3/31/2032 |  |  | 928,728 |  |  |  | 1,275,000 |  |  |  | 1.50 |
Irby Construction - Plant City , Florida |  |  | 928,728 |  |  |  | 3.85 | % | ** | 3/31/2032 |  |  | 928,728 |  |  |  | 850,000 |  |  |  | 1.50 |
Best Buy - Grand Junction, Colorado |  |  | 2,552,644 |  |  |  | 3.85 | % | ** | 3/31/2032 |  |  | 2,552,644 |  |  |  | 2,350,000 |  |  |  | 1.50 |
Fresenius - Chicago, Illinois |  |  | 1,727,108 |  |  |  | 3.85 | % | ** | 3/31/2032 |  |  | 1,727,108 |  |  |  | - |  |  |  | 1.50 |
Starbucks - North Tampa, Florida |  |  | 1,298,047 |  |  |  | 3.85 | % | ** | 3/31/2032 |  |  | 1,298,047 |  |  |  | - |  |  |  | 1.50 |
Kohls - Tucson, Arizona |  |  | 3,964,745 |  |  |  | 3.85 | % | ** | 3/31/2032 |  |  | 3,964,745 |  |  |  | - |  |  |  | 1.50 |
|  |  | 37,450,913 |  |  |  |  |  |  |  |  | 36,242,002 |  |  |  | 29,606,988 |  |  |  |
|  |  |  |  |  |  |  | Less Debt Issuance Costs |  |  | (786,490 | ) |  |  | (637,693 | ) |  |  |
|  |  |  |  |  |  |  |  |  |  | 35,455,512 |  |  |  | 28,969,295 |  |  |  |
*Loan subject to prepayment penalty **Adjustment effective April 1, 2027 equal to 5-year Treasury plus 2.5% and subject to a floor of 3.85% ***Fixed via interest rate swap The Company amortized debt issuance costs during the six months ended June 30, 2022 and 2021 to interest expense of approximately $61,606 and $63,922, respectively. The Company paid debt issuance costs for the six months ended June 30, 2022 and 2021 of approximately $354,432 and $39,991, respectively. Each promissory note requires the Company to maintain certain debt service coverage ratios as noted above. In addition, one promissory note, encumbered by six properties, require the Company to maintain a 54% loan to value ratio. As of June 30, 2022, the Company was in compliance with all covenants. The Company’s President has personally guaranteed the repayment of the $11.1 million due under the 7-11 - Washington, DC; Starbucks-South Tampa, FL; and Pratt & Whitney-Huntsville, AL loan as well as the $1.3 million loan secured by the Company's Sherwin-Williams - Tampa, Florida property. In addition, the Company’s President has also provided a guaranty of the Borrower’s nonrecourse carveout liabilities and obligations in favor of the lender for the Norfolk, Virginia property loans (the “Bayport loans”) with an aggregate principal amount of $12,500,985. The Company modified the Bayport loans in March 2021 for no fees and reduced the associated interest rate from 4.25% to 3.50%. The Company determined that the debt modification was not substantial under ASC 470-50. Minimum required principal payments on the Company’s debt as of June 30, 2022 are as follows:
|  | As of June 30, |
|  | 2022 |
2022 |  | $ | 291,328 |
2023 |  |  | 785,524 |
2024 |  |  | 12,427,090 |
2025 |  |  | 546,280 |
2026 |  |  | 568,514 |
Thereafter |  |  | 21,623,266 |
|  | $ | 36,242,002 |
On May 9, 2022, the Operating Partnership amended the current Commitment Letter with American Momentum Bank (the “Lender”), by entering into a new commitment letter, to increase the available Borrowings under the Facility from $25.0 million to $50.0 million to be used for the acquisition of income producing real estate properties under the same terms as provided by the agreement entered into on October 26, 2021. The new Commitment Letter will become effective contingent upon the Company completing a future capital raise of $25.0 million or more, and prior to such time, the current Commitment Letter will remain in place. As of June 30, 2022 the Company did not have an outstanding balance on the Facility and as of December 31, 2021 the Company had borrowed approximately $2.4 million, respectively, under the Facility.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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