Subsequent Events

The Company has evaluated subsequent events through the filing of this Form 10-Q, and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following transactions:

Acquisitions

On October 5, 2011, the Company acquired a one-story building containing approximately 9,800 rentable square feet, located in Queens, New York, for a purchase price of $14.0 million. The building is 100% leased to Duane Reade, a subsidiary of Walgreen Co. The lease for the property has an initial term of 20 years and expires in October 2028. The annualized rental income for the remaining term of the lease is approximately $960,000 or $98.29 per rentable square foot. The tenant’s obligations under the lease are guaranteed by Walgreen Co. The Company funded the acquisition, excluding acquisition costs, of the property with (a) net proceeds from its ongoing offering of approximately $5.6 million and (b) a $8.4 million mortgage loan. The mortgage loan bears interest at a fixed-rate of 3.55% and requires only interest payments until its maturity date in November 2016.

On November 4, 2011, the Company acquired a a portfolio of four retail condominiums, containing a total of approximately 24,000 rentable square feet, located on Washington Street in New York City, for a purchase price of $9.9 million. Each condominium is 100% occupied with lease maturities ranging from 2015 to 2030. Annual rental rates currently range from approximately $25.72 to $61.31 per square foot with a weighted average annual rental rate of $40.35 per square foot. The Company funded the acquisition, excluding acquisition costs, of the property, with (a) net proceeds from its ongoing offering of approximately $4.9 million and (b) a $5.0 million mortgage loan. The mortgage requires payments of principal based on a 30-year amortization schedule, with the remaining principal due at maturity in December 2021. The interest is fixed at 4.375% during the first five years and thereafter, adjusted annually to prime plus a margin of 2.75%.

Sales of Common Stock

As of October 31, 2011, the Company had approximately 3.6 million shares of common stock outstanding, including unvested restricted shares and shares issued under the DRIP. Total gross proceeds from these issuances were $35.1 million. As of October 31, 2011, the aggregate value of all share issuances was $35.6 million based on a per share value of $10.00 (or $9.50 per share for shares issued under the DRIP).

Total capital raised to date is as follows (amounts in thousands):



Source of Capital	Inception to September 30, 2011		October 1 to October 31, 2011		Total
Common shares	$	28,847	$	6,252	$	35,099
Preferred Shares	16,954		—		16,954
Contributions from non-controlling interest holders	13,000		—		13,000
	$	58,801	$	6,252	$	65,053