SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

The Company evaluates subsequent events up until the date the consolidated financial statements are issued.

Cash Distributions Paid

On July 1, 2020, the Company paid cash distributions of $0.2 million, which related to a distribution declared for June 2020 in the amount of $0.02107500 per share of common stock to stockholders of record as of the close of business on June 25, 2020.

Liquidation Strategy

On August 5, 2020, the Company’s board of directors determined that it is in the best interests of the Company and its stockholders to pursue a liquidation strategy through asset sales. The special committee of the board of directors has directed the Advisor, with the assistance of the independent financial advisor of the special committee, to develop a plan of liquidation for approval by the board and submission to the stockholders. Stockholders are cautioned that the Company currently has no agreements in place to sell any of its assets and economic and market conditions that arise in the future including the effect of the ongoing pandemic related to COVID-19 could impact this process. See Note 1, “Organization – Liquidation Strategy” for further discussion.

Distribution Policy

The Company’s board of directors has determined to adjust the distribution policy for the Company in response to the uncertainty caused by the ongoing public health crisis of the COVID-19 pandemic and its uncertain impact on the Company’s operations and those of its tenants. Going forward, the Company’s board of directors expects to consider and declare quarterly distributions based on a single quarterly record date commencing with the third quarter of 2020.

Termination of Offerings

In connection with the determination to pursue a liquidation strategy, on August 5, 2020, the Company’s board of directors approved the termination of the DRP Offering effective August 20, 2020. In addition, the Company has terminated the Second Private Offering.

Share Redemption Program

Also on August 5, 2020, the Company’s board of directors established a new dollar amount limitation under the Company’s share redemption program, which currently only provides for redemptions sought upon a stockholder’s death, “qualifying disability” or “determination of incompetence” (each as defined in the share redemption program, and collectively “special redemptions”), for the remainder of the calendar year 2020 of $200,000. This reduced dollar amount limitation will be effective for and include redemptions for the month of August 2020.