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INVESTMENTS IN REAL ESTATE
 12 Months Ended
Jun. 30, 2024
INVESTMENTS IN REAL ESTATE [Abstract]  
INVESTMENTS IN REAL ESTATE
NOTE 3 – INVESTMENTS IN REAL ESTATE
 
The following tables provide summary information regarding our operating properties, which are owned through our subsidiaries. The ownership interest shown below is the percentage of the property owned by the subsidiary, not the percentage of the subsidiary owned by the Parent Company or the Operating Partnership.
 
Consolidated Operating Properties

Property Name:
Commodore Apartments
Pon de Leo Apartments
Hollywood Apartments
 Shoreline Apartments
Property Owner:
Madison-PVT Partners LLC
PVT-Madison Partners LLC
PT Hillview GP, LLC
 MacKenzie BAA IG Shoreline LLC
Location:
Oakland, CA
Oakland, CA
Hollywood, CA
 Concord, CA
Number of Tenants:
42
36
48
 74
Year Built:
1912
1929
1917
 1968
Ownership Interest:
100%
100%
100%
 100%
 
 
 
 
  
Property Name:
Satellite Place Office Building
First & Main Office Building
1300 Main Office Building
 Woodland Corporate Center
Property Owner:
MacKenzie Satellite Place Corp.
First & Main, LP
1300 Main, LP
 Woodland Corporate Center Two, LP
Location:
Duluth, GA
Napa, CA
Napa, CA
 Woodland, CA
Number of Tenants:
4
9
7
 14
Year Built:
2002
2001
2020
 2004
Ownership Interest:
100%
100%
100%
 100%
       
Property Name: Main Street West Office Building 220 Campus Lane Office Building Green Valley Executive Center One Harbor Center
Property Owner: Main Street West, LP 220 Campus Lane, LLC GV Executive Center, LLC One Harbor Center, LP
Location: Napa, CA Fairfield, CA Fairfield, CA Suisun, CA
Number of Tenants: 8 1 17 13
Year Built: 2007 1990 2006 2001
Ownership Interest: 100% 100% 100% 100%
 
The following table presents the purchase price allocation of real estate assets acquired during the year ended June 30, 2024 based on asset acquisition accounting.

Property Name:
  
220 Campus Lane Office Building
 
Acquisition Date:
  
September 8, 2023
 
Purchase Price Allocation
      
Land
  
$
1,357,288
  
Building
    
859,594
  
Parking Lot
     410,116  
Debt mark-to-market
     223,000  
         
Total assets acquired
   $
2,849,998
  

Property Name:
  
Campus Lane Residential Land
  
Acquisition Date:
  
September 8, 2023
  
Purchase Price Allocation
  
 
Land
  
$
1,503,758
  
Debt mark-to-market
    
120,000
  
         
Total assets acquired
  
$
1,623,758
  

Property Name:
  
Green Valley Executive Center
 
Acquisition Date:
  
January 1, 2024
 
Purchase Price Allocation
      
Land
  
$
1,352,865
  
Building
    
18,193,191
  
Site Improvements
    
705,843
  
Tenant Improvements
    
617,514
  
Lease In Place
    
1,012,044
  
Leasing Commissions
    
296,001
  
Legal & Marketing Lease Up Costs
    
78,999
  
Debt mark-to-market
     993,000  
Solar Finance Lease
     650,276  
Total assets acquired
    
23,899,733
  

       
Net leasehold liability
    
(117,611
)

       
Total assets acquired, net
  
$
23,782,122
  

Property Name:
  
One Harbor Center
  
Acquisition Date:
  
May 1, 2024
  
Purchase Price Allocation
      
Land
  
$
1,364,866
  
Building
    
11,209,831
  
Site Improvements
    
627,639
  
Tenant Improvements
    
633,788
  
Lease In Place
    
778,561
  
Leasing Commissions
    
230,157
  
Legal & Marketing Lease Up Costs
    
60,937
  
Debt mark-to-market
    
334,000
  
Solar Finance Lease
     713,704  
Total assets acquired
    
15,953,484
  

       
Net leasehold asset
    
30,212
         
Total assets acquired
  
$
15,983,696
  

The total depreciation expense of our operating properties for the years ended June 30, 2024 and June 30, 2023 was $5,109,524 and $3,735,160, respectively.
Operating Leases:
 
Our real estate assets are leased to tenants under operating leases that contain varying terms and expirations. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. We retain substantially all the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, we do not require a security deposit from tenants on our commercial real estate properties, depending upon the terms of the respective leases and the creditworthiness of the tenants. Even when required, security deposits generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of the security deposit. Security deposits received in cash related to tenant leases are included in other accrued liabilities in the accompanying consolidated balance sheets and were immaterial as of June 30, 2024 and 2023.
 
The following table presents the components of income from real estate operations for the year ended June 30, 2024 and 2023:
 
 
  
Year Ended June 30,
  
 
  
2024
    
2023
  
 
            
Lease income - Operating leases
  
$
14,755,307
    
$
13,531,788
  
Variable lease income (1)
    
980,796
      
1,575,431
  
 
  
$
15,736,103
    
$
15,107,219
  


(1)
Primarily includes tenant reimbursements for utilities and common area maintenance.

As of June 30, 2024, the future minimum rental income from our real estate properties under non-cancelable operating leases are as follows:
Year ended June 30, :
  
Rental Income
  
2025
  
$
12,015,210
  
2026
    
9,258,288
  
2027
    
6,589,707
  
2028
    
5,415,188
  
2029
    
4,500,143
  
Thereafter
    
9,372,528
  
Total
  
$
47,151,064
  

Lease Intangibles, Above-Market Lease Assets and Below-Market Lease Liabilities, Net
 
As of June 30, 2024 and 2023, our acquired lease intangibles, above-market lease assets, and below-market lease liabilities were as follows:
 
 
  
As of June 30, 2024
  
 
  
Lease Intangibles
    
Above-Market
Lease Asset
    
Below-Market
Lease Liabilities
  
 
                  
Cost
  
$
10,738,744
    
$
702,254
    
$
2,717,150
  
Accumulated amortization
    
(4,168,692
)
    
(226,628
)
    
(1,432,318
)
Total
  
$
6,570,052
    
$
475,626
    
$
1,284,832
  
 
                        
Weighted average amortization period (years)
    
4.8
      
4.6
      
4.8
  
 
 
  
As of June 30, 2023
  
 
  
Lease Intangibles
    
Above-Market
Lease Asset
    
Below-Market
Lease Liabilities
  
 
                  
Cost
  
$
7,760,923
    
$
419,166
    
$
2,346,666
  
Accumulated amortization
    
(2,124,799
)
    
(70,653
)
    
(936,576
)
Total
  
$
5,636,124
    
$
348,513
    
$
1,410,090
  
 
                        
Weighted average amortization period (years)
    
4.9
      
5.4
      
5.1
  
 
Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the year ended June 30, 2024, were as follows:
 
 
  
Lease
Intangibles
    
Above-Market
Lease Asset
    
Below-Market
Lease Liabilities
  
Amortization
  
$
2,043,893
    
$
155,975
    
$
(495,742
)
 
Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the year ended June 30, 2023, were as follows:
 
 
  
Lease
Intangibles
    
Above-Market
Lease Asset
    
Below-Market
Lease Liabilities
  
Amortization
  
$
1,538,631
    
$
70,653
    
$
(544,838
)
 
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,
 
 
  
2025
    
2026
    
2027
    
2028
    
2029
    
Thereafter
  
In-place leases, to be included in amortization
  
$
2,267,974
    
$
1,606,267
    
$
903,769
    
$
620,809
    
$
481,998
    
$
689,235
  
 
                                                
Above-market lease intangibles
  
$
174,083
    
$
104,811
    
$
76,908
    
$
39,087
    
$
29,089
    
$
51,648
  
Below-market lease liabilities
    
(390,901
)
    
(300,443
)
    
(214,007
)
    
(160,000
)
    
(120,814
)
    
(98,667
)

 
$
(216,818
)
  
$
(195,632
)
  
$
(137,099
)
  
$
(120,913
)
  
$
(91,725
)
  
$
(47,019
)