REAL ESTATE INVESTMENTS AND LEASE INTANGIBLES

12 Months Ended

Dec. 31, 2022

REAL ESTATE INVESTMENTS AND LEASE INTANGIBLES

REAL ESTATE INVESTMENTS AND LEASE INTANGIBLESShown below are details of the Company's investments in real estate.


	December 31,
	2022		2021
Land	$	135,169	$	135,169
Buildings and improvements, less accumulated depreciation of $45,734 and $35,225, respectively	259,429		267,826
Furniture, fixtures and equipment, less accumulated depreciation of $1,665 and $658, respectively	2,443		3,226
Acquired intangible lease assets, less accumulated amortization of $43,476 and $35,976, respectively	23,511		31,011
Investment in real estate assets, net	$	420,552	$	437,232

The Company acquired no real estate properties during the year ended December 31, 2022, one real estate property during the year ended December 31, 2021 and no real estate properties during the year ended December 31, 2020.

On November 19, 2021, the Company acquired The Glenn for a purchase price of $128,500, excluding closing costs. The acquisition was funded with proceeds from the Offerings, a borrowing of $55,000 under the Company's line of credit and a secured, fully non-recourse loan for $66,000 from Massachusetts Mutual Life Insurance Company. The Glenn is a six story, 306-unit mid-rise residential community in Centennial, Colorado with 274,688 rentable square feet (unaudited).

All leases at The Glenn have been classified as operating leases.

Under ASC 805, The Glenn acquisition was determined to be an asset acquisition, resulting in the Company's capitalization of $139 of acquisition related costs.

The Company's allocations of the purchase price (including acquisition related costs) of the 2021 acquisition to the fair value of the major components of the assets acquired and liabilities assumed, using Level 3 inputs and assumptions, are as follows:


	The Glenn
Land	$	10,309
Building and improvements	111,908
Furniture, fixtures and equipment	3,125
Acquired in-place leases	3,297


Total purchase price	$	128,639

The Company recorded revenues and net loss related to the acquisition during the year ended December 31, 2021, as follows:


	Year Ended December 31, 2021
Revenues	$	794
Net loss	(1,047)

The Company’s estimated revenues and net loss, on a pro forma basis, as if The Glenn acquisition was completed on January 1, 2020, are as follows (unaudited):


	Year Ended December 31, 2021		Year Ended December 31, 2020
Revenues	$	40,745	$	38,789
Net income (loss)	1,033		(9,238)
Basic and diluted net income (loss) per share of Class A common stock	$	0.07	$	(0.61)
Basic and diluted net income (loss) per share of Class I common stock	$	0.06	$	(0.06)
Basic and diluted net income (loss) per share of Class T common stock	$	0.06	$	(0.61)
Basic and diluted net income (loss) per share of Class D common stock	$	0.05	$	(0.61)
Basic and diluted net income (loss) per share of Class N common stock	$	0.07	$	(0.61)
Basic and diluted net loss per share of Class M-I common stock*	$	(0.09)	$	—
Basic and diluted net loss per share of Class T2 common stock*	$	(0.11)	$	—
Basic and diluted net income per share of Class Z common stock*	$	0.42	$	—
*No shares of Class M-I, Class T2 and Class Z common stock were issued and outstanding during any time of the year ended December 31, 2020.

The pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of period presented, nor does it purport to represent the results of future operations.

Future amortization related to acquired intangible assets and liabilities for all of the Company's properties as of December 31, 2022 is as follows:


	Acquired in-place leases		Acquired above-market leases		Acquired below-market leases
2023	$	3,919	$	32	$	(2,827)
2024	1,970		12		(475)
2025	1,946		12		(475)
2026	1,889		12		(475)
2027	1,707		12		(474)
Thereafter	11,990		10		(6,133)
Total	$	23,421	$	90	$	(10,859)

Weighted average remaining amortization period (in years)	10.0		4.6		15.4