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INVESTMENTS IN REAL ESTATE ASSETS (Tables)
 12 Months Ended
Jun. 30, 2021
INVESTMENTS IN REAL ESTATE ASSETS [Abstract]  
Consolidated Operating Properties Information
The following table provides summary information regarding the Company’s operating properties, which are owned through the Company’s subsidiaries; Operating Partnership, Madison and PVT:
 
Consolidated Operating Properties
 
Property Name:
Addison Corporate Center
Commodore Apartments
Pon de Leo Apartments
Property Owner:
The Operating Partnership
Madison-PVT Partners LLC
PVT-Madison Partners LLC
Location:
Windsor, CT
Oakland, CA
Oakland, CA
Number of Tenants:
6
48
39
Year Built:
1980
1912
1929
Ownership Interest:
100%
100%
100%
Purchase Price Allocation for Property Acquired
The following table summarizes the assets acquired and liabilities assumed at the acquisition date for the Operating Partnership’s acquisition of Property Owner on June 8, 2020:
 
 
 
Purchase Price Allocation
June 8, 2020
 
 
   
Land
 
$
7,814,670
 
Building
  
19,761,048
 
Building and tenant improvements
  
4,553,356
 
Intangible lease assets
  
6,580,926
 
Other current assets
  
3,872,238
 
Total assets acquired
 
$
42,582,238
 
 
Mortgages assumed`
 
$
24,404,257
 
Other current liabilities
  
1,647,965
 
Total liabilities assumed
  
26,052,222
 
 
    
Fair value of equity interests
 
$
16,530,016
 
Adjusted Carrying Value of Long-lived Assets
Therefore, during consolidation the Company recorded a carrying value adjustment of $6,332,745 on all of the Operating Partnership’s long-lived assets proportionately based on the relative carrying values at December 31, 2020, immediately prior to the termination of BDC status as shown in the following table:
 
 
 
Carrying Value Before Adjustment
  
Adjustment
  
Adjusted Carrying Value
 
 
         
Land
 
$
7,814,670
  
$
1,358,055
  
$
6,456,615
 
Building
  
19,040,593
   
3,308,926
   
15,731,667
 
Building and tenant improvements
  
3,986,945
   
692,862
   
3,294,083
 
Intangible lease assets:
            
Lease in place
  
4,237,905
   
736,475
   
3,501,430
 
Leasing commissions
  
782,349
   
120,558
   
661,791
 
Leaseholds (above market)
  
541,822
   
94,159
   
447,663
 
Leasehold improvements
  
99,599
   
17,308
   
82,291
 
Other intangibles
  
25,333
   
4,402
   
20,931
 
 
 
$
36,529,216
  
$
6,332,745
  
$
30,196,471
 
 
The following table presents the allocation of real estate assets acquired and liabilities assumed during the six months ended June 30, 2021. Both acquisitions were considered asset acquisitions for accounting purposes.
 
Property Name:
Acquisition Date:
 
Commodore Apartments
March 5, 2021
  
Pon de Leo Apartments
March 5, 2021
 
 
      
Purchase Price Allocation
      
Land
 
$
5,519,963
  
$
4,317,013
 
Building
  
6,513,902
   
10,818,957
 
Building and tenant improvements
  
144,384
   
185,924
 
Furniture, Fixtures & Equipment
  
830,429
   
746,368
 
Intangible lease assets
  
190,219
   
209,479
 
Net leasehold asset (liability)
  
(485,544
)
  
(451,908
)
Total consideration paid for acquired real estate investments, net of liabilities assumed
 
$
12,713,353
  
$
15,825,833
 
Components of Income From Real Estate Operations
The following table presents the components of income from real estate operations for the six months ended June 30, 2021:

Lease Income- Operating leases
 
$
3,141,111
 
Variable lease income (1)
  
604,004
 
 
 
$
3,745,115
 

(1)
Primarily includes tenant reimbursements for utilities and common area maintenance.
Real Estate Properties Under Non-Cancelable Operating Leases
As of June 30, 2021, the future minimum rental income from the Company’s real estate properties under non-cancelable operating leases are as follows:

Year ended June 30,:
 
Rental Income
 
2022
 
$
5,351,154
 
2023
  
3,154,883
 
2024
  
2,976,158
 
2025
  
3,051,039
 
2026
  
2,161,240
 
Thereafter
  
4,758,268
 
Total
 
$
21,452,742
 
Acquired Lease Intangibles, Above-Market Lease Assets and Below-Market Lease Liabilities
As of June 30, 2021, the Company’s acquired lease intangibles, above-market lease assets and below-market lease liabilities, were as follows:
 
  
Lease Intangibles
  
Above-Market Lease Asset
  
Below-Market Lease Liabilities
 
          
Cost
 
$
5,141,279
  
$
447,663
  
$
937,452
 
Accumulated amortization
  
(1,086,485
)
  
(63,952
)
  
(99,139
)
Total
 
$
4,054,794
  
$
383,711
  
$
838,313
 
             
Weighted average amortization period (years)
  
3.1
   
3.5
   
3.4
 
Amortization of Lease Intangibles, Above-Market Lease Assets And Below-Market Lease Liabilities
The Company’s amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the six months ended June 30, 2021, were as follows
 
  
Six Months Ended
 
  
June 30, 2021
 
  
Lease Intangibles
  
Above-Market Lease Asset
  
Below-Market Lease Liabilities
 
Amortization
 
$
1,086,486
  
$
63,952

 
$
(99,139
)
Projected Amortization Expense and Adjustments
The following table provides the projected amortization expense and adjustments to revenue from tenants for intangible assets and liabilities for the next five years:
 
  
Year Ended June 30, :
 
  
2022
  
2023
  
2024
  
2025
  
2026
 
In-place leases, to be included in amortization
 
$
1,414,305
  
$
1,425,147
  
$
833,535
  
$
69,243
  
$
69,243
 
                     
Above-market lease intangibles
 
$
127,904
  
$
127,904
  
$
127,904
  
$
-
  
$
-
 
Below-market lease liabilities
  
(286,908
)
  
(267,695
)
  
(217,763
)
  
(65,947
)
  
-
 
Total to be included in revenue from tenants
 
$
(159,004
)
 
$
(139,791
)
 
$
(89,859
)
 
$
(65,947
)
 
$
-