REAL ESTATE ASSETS

12 Months Ended

Dec. 31, 2019

NOTE 4 — REAL ESTATE ASSETS

2019 and 2018 Property Acquisitions

During the years ended December 31, 2019 and 2018, the Company did not acquire any properties.

2017 Property Acquisition

During the year ended December 31, 2017, the Company acquired one industrial property, leased to Actuant Corporation, for a purchase price of $16.9 million (the “2017 Acquisition”), which includes $355,000 of external acquisition-related expenses that were capitalized in accordance with ASU 2017-01. Prior to the Company’s adoption of ASU 2017-01, costs related to the property acquisitions were expensed as incurred. The Company purchased the 2017 Acquisition with net proceeds from the Offering and available borrowings. The Company allocated the purchase price of this property to the fair value of the assets acquired. The following table summarizes the purchase price allocation for the 2017 Acquisition:



	December 31, 2017
Land	$	937,691
Buildings and improvements	14,287,443
Acquired in-place lease ⁽¹⁾	1,630,071
Total purchase price	$	16,855,205

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(1) The weighted average amortization period for the acquired in-place lease was 16.2 years for the 2017 Acquisition.

Asset Concentration

As of December 31, 2019, the Company had two tenants that constitute significant asset concentrations. The tenant of the 2017 Acquisition, Enerpac, is a significant tenant and is a subsidiary of Actuant Corporation. The audited financial statements for Actuant Corporation, for the fiscal year ended August 31, 2019, are publicly available on the SEC’s website, http://www.sec.gov. The tenant of the Company’s second property, Siemens Corporation, is a significant tenant and is a subsidiary of Siemens AG. The audited financial statements for Siemens AG, for the fiscal year ended September 30, 2019, can be found on their website at https://assets.new.siemens.com/siemens/assets/api/uuid:f224a87a-6265-4e40-a3f5-003257f08a11/siemens-sag2019-e.pdf.