REAL ESTATE INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2019

The following table provides summary information regarding the Company’s real estate portfolio as of December 31, 2019:



Property	Location	Acquisition Date	Property Type	Land, Buildings and Improvements		Tenant Origination and Absorption Costs		Accumulated Depreciation and Amortization			Total Investment in Real Estate Property, Net
Accredo Health	Orlando, FL	6/15/2016	Office	$	9,855,847	$	1,053,637	$	(1,754,846	)	$	9,154,638
Walgreens	Stockbridge, GA	6/21/2016	Retail	4,147,948		705,423		(1,175,073		)	3,678,298
Dollar General	Litchfield, ME	11/4/2016	Retail	1,281,812		116,302		(125,762		)	1,272,352
Dollar General	Wilton, ME	11/4/2016	Retail	1,543,776		140,653		(160,948		)	1,523,481
Dollar General	Thompsontown, PA	11/4/2016	Retail	1,199,860		106,730		(120,834		)	1,185,756
Dollar General	Mt. Gilead, OH	11/4/2016	Retail	1,174,188		111,847		(115,853		)	1,170,182
Dollar General	Lakeside, OH	11/4/2016	Retail	1,112,872		100,857		(118,901		)	1,094,828
Dollar General	Castalia, OH	11/4/2016	Retail	1,102,086		86,408		(115,524		)	1,072,970
Dana	Cedar Park, TX	12/27/2016	Industrial	8,392,906		1,210,874		(1,492,171		)	8,111,609
Northrop Grumman	Melbourne, FL	3/7/2017	Office	12,382,991		1,341,199		(2,185,956		)	11,538,234
exp US Services	Maitland, FL	3/27/2017	Office	6,056,668		388,248		(609,311		)	5,835,605
Harley	Bedford, TX	4/13/2017	Retail	13,178,288		—		(907,230		)	12,271,058
Wyndham	Summerlin, NV	6/22/2017	Office	10,406,483		669,232		(815,730		)	10,259,985
Williams Sonoma	Summerlin, NV	6/22/2017	Office	8,079,612		550,486		(746,900		)	7,883,198
Omnicare	Richmond, VA	7/20/2017	Industrial	7,262,747		281,442		(587,875		)	6,956,314
EMCOR	Cincinnati, OH	8/29/2017	Office	5,960,610		463,488		(424,764		)	5,999,334
Husqvarna	Charlotte, NC	11/30/2017	Industrial	11,840,200		1,013,948		(756,557		)	12,097,591
AvAir	Chandler, AZ	12/28/2017	Industrial	27,357,900		—		(1,417,062		)	25,940,838
3M	DeKalb, IL	3/29/2018	Industrial	14,762,819		2,356,361		(2,231,246		)	14,887,934
Cummins	Nashville, TN	4/4/2018	Office	14,465,491		1,536,998		(1,357,376		)	14,645,113
Northrop Grumman Parcel	Melbourne, FL	6/21/2018	Land	329,410		—		—			329,410
24 Hour Fitness	Las Vegas, NV	7/27/2018	Retail	11,484,784		1,204,973		(653,647		)	12,036,110
Texas Health	Dallas, TX	9/13/2018	Office	6,976,703		713,221		(384,029		)	7,305,895
Bon Secours	Richmond, VA	10/31/2018	Office	10,042,551		800,356		(526,238		)	10,316,669
Costco	Issaquah, WA	12/20/2018	Retail	27,292,418		2,765,136		(1,352,612		)	28,704,942
Taylor Fresh Foods	Yuma, AZ	10/24/2019	Industrial	34,194,370		2,894,017		(275,349		)	36,813,038
Chevron Gas Station	San Jose, CA	12/31/2019	Retail	4,054,759		145,577		—			4,200,336
Levins	Sacramento, CA	12/31/2019	Industrial	4,429,390		221,927		—			4,651,317
Chevron Gas Station	Roseville, CA	12/31/2019	Retail	3,648,571		136,415		—			3,784,986
Island Pacific Supermarket	Elk Grove, CA	12/31/2019	Retail	2,560,311		197,495		—			2,757,806
Dollar General	Bakersfield, CA	12/31/2019	Retail	4,899,714		261,630		—			5,161,344
Rite Aid	Lake Elsinore, CA	12/31/2019	Retail	6,842,089		420,441		—			7,262,530
PMI Preclinical	San Carlos, CA	12/31/2019	Office	9,672,174		408,225		—			10,080,399
EcoThrift	Sacramento, CA	12/31/2019	Retail	5,550,226		273,846		—			5,824,072
GSA (MSHA)	Vacaville, CA	12/31/2019	Office	3,112,076		243,307		—			3,355,383
PreK Education	San Antonio, TX	12/31/2019	Retail	12,447,287		447,927		—			12,895,214
Dollar Tree	Morrow, GA	12/31/2019	Retail	1,320,367		73,298		—			1,393,665
Dinan Cars	Morgan Hill, CA	12/31/2019	Industrial	6,252,657		—		—			6,252,657
Solar Turbines	San Diego, CA	12/31/2019	Office	7,133,241		284,026		—			7,417,267
Wood Group	San Diego, CA	12/31/2019	Office	9,731,220		392,955		—			10,124,175
ITW Rippey	El Dorado Hills, CA	12/31/2019	Industrial	7,071,143		304,387		—			7,375,530
Dollar General	Big Spring, TX	12/31/2019	Retail	1,281,683		76,351		—			1,358,034
Gap	Rocklin, CA	12/31/2019	Office	8,378,276		360,377		—			8,738,653
L-3 Communications	Carlsbad, CA	12/31/2019	Office	11,631,857		454,035		—			12,085,892
Sutter Health	Rancho Cordova, CA	12/31/2019	Office	29,555,055		1,616,610		—			31,171,665
Walgreens	Santa Maria, CA	12/31/2019	Retail	5,223,442		335,945		—			5,559,387
				$	396,680,878	$	27,266,610	$	(20,411,794	)	$	403,535,694

Property Acquisitions

During the year ended December 31, 2018, the Company acquired the following real estate properties:



Property	Land		Buildings and Improvements		Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles			Total
3M	$	758,780	$	14,004,039	$	2,356,361	$	—	$	(1,417,483	)	$	15,701,697
Cummins	3,347,959		11,117,531		1,536,998		—		—			16,002,488
Northrop Grumman Parcel	329,410		—		—		—		—			329,410
24 Hour Fitness	3,121,985		8,331,352		1,204,974		—		—			12,658,311
Texas Health	1,827,914		5,148,789		713,221		—		—			7,689,924
Bon Secours	1,658,659		8,383,892		800,356		—		—			10,842,907
Costco	8,202,915		19,060,717		2,765,136		—		—			30,028,768
	$	19,247,622	$	66,046,320	$	9,377,046	$	—	$	(1,417,483	)	$	93,253,505



Property	Land		Buildings and Improvements		Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles			Total
REIT I Property Portfolio:
Chevron Gas Station	$	3,787,021	$	267,738	$	145,577	$	41,739	$	—		$	4,242,075
Levins	1,404,863		3,024,527		221,927		26,469		—			4,677,786
Chevron Gas Station	2,636,663		1,011,908		136,415		24,432		—			3,809,418
Island Pacific Supermarket	676,981		1,883,330		197,495		—		(76,351		)	2,681,455
Dollar General	1,099,458		3,800,256		261,630		—		(41,739		)	5,119,605
Rite Aid	3,939,724		2,902,365		420,441		186,297		—			7,448,827
PMI Preclinical	4,774,497		4,897,677		408,225		115,036		—			10,195,435
EcoThrift	2,300,717		3,249,509		273,846		—		(388,882		)	5,435,190
GSA (MSHA)	399,062		2,713,014		243,307		—		(101,802		)	3,253,581
PreK San Antonio	963,044		11,484,243		447,927		—		(28,504		)	12,866,710
Dollar Tree	159,829		1,160,538		73,298		10,180		—			1,403,845
Dinan Cars	2,453,420		3,799,237		—		—		—			6,252,657
Solar Turbines	2,483,960		4,649,281		284,026		—		(108,928		)	7,308,339
Amec Foster	3,461,256		6,269,964		392,955		—		—			10,124,175
ITW Rippey	787,945		6,283,198		304,387		—		—			7,375,530
Dollar General Big Spring	103,838		1,177,845		76,351		—		(127,252		)	1,230,782
Gap	2,076,754		6,301,522		360,377		—		(68,207		)	8,670,446
L-3 Communications	3,552,878		8,078,979		454,035		—		(174,081		)	11,911,811
Sutter Health	2,443,240		27,111,815		1,616,610		87,549		—			31,259,214
Walgreens	1,832,430		3,391,012		335,945		272,829		—			5,832,216
	41,337,580		103,457,958		6,654,774		764,531		(1,115,746		)	151,099,097
Taylor Fresh Foods	4,312,016		29,882,353		2,894,017		—		(11,526,976		)	25,561,410
	$	45,649,596	$	133,340,311	$	9,548,791	$	764,531	$	(12,642,722	)	$	176,660,507

Property Purchase Price



Purchase price and other acquisition costs	$	176,660,507
Purchase deposit applied	(2,000,000		)
Acquisition fees to affiliate related to Taylor Fresh Foods (Note 9)	(741,000		)
Acquisition of real estate before financing	$	173,919,507



Purchase price and other acquisition costs	$	93,253,505
Acquisition fees to affiliate	(2,702,043		)
Acquisition of real estate before financing	$	90,551,462

Lease Expiration Dates

The noncancellable lease terms of the properties acquired during the year ended December 31, 2019 are as follows:



Property		Lease Expiration
Chevron Gas Station		5/27/2025
Levins		8/20/2023
Chevron Gas Station		9/30/2025
Island Pacific Supermarket		5/31/2025
Dollar General		7/31/2028
Rite Aid		2/25/2028
PMI Preclinical		10/31/2025
EcoThrift		2/28/2026
GSA (MSHA)		8/24/2026
PreK San Antonio		7/31/2021
Dollar Tree		7/31/2025
Dinan Cars		4/30/2023
Solar Turbines		2/28/2021
Amec Foster		7/31/2021
ITW Rippey		8/1/2022
Dollar General Big Spring		4/30/2030
Gap		2/28/2023
L-3 Communications		4/30/2022
Sutter Health		10/31/2025
Walgreens		2/28/2031
Taylor Fresh Foods		9/30/2033

The noncancellable lease terms of the properties acquired during the year ended December 31, 2018 are as follows:



Property		Lease Expiration
3M		7/31/2022
Cummins		2/28/2023
24 Hour Fitness		3/31/2030
Texas Health		12/31/2025
Bon Secours		8/31/2026
Costco (1)		7/31/2025


(1)	The tenant’s right to cancel the lease on July 31, 2023 was not determined to be probable for financial accounting purposes.

Portfolios Asset Concentration

Asset Concentration

The Company’s portfolio asset concentration as of December 31, 2019 and 2018 was as follows (greater than 10% of total assets):



	December 31, 2019			December 31, 2018
Property and Location	Net Carrying Value		Percentage of Total Assets	Net Carrying Value		Percentage of Total Assets
AvAir, Chandler, AZ	$	—	—	$	27,353,125	17.4%

Revenue Concentration

The Company’s revenue concentration based on tenants representing greater than 10% of total revenues for the years ended December 31, 2019 and 2018 are as follows:



	2019			2018
Property and Location	Revenue		Percentage of Total Revenue	Revenue		Percentage of Total Revenue
AvAir, Chandler, AZ	$	2,670,159	10.9%	$	2,100,000	19.9%
Northrop Grumman, Melbourne, FL	$	—	—	$	1,162,274	11.0%

Rental Payments for Operating Leases

As of December 31, 2019, the future minimum contractual rent payments due under the Company’s operating leases, excluding any renewal periods, are as follows:



2020	$	29,114,325
2021	27,866,428
2022	25,639,567
2023	22,401,061
2024	21,838,412
Thereafter	75,964,673
	$	202,824,466

Finite-Lived Intangible Assets

As of December 31, 2019 and 2018, the Company’s intangible assets were as follows:



	December 31, 2019									December 31, 2018
	Tenant Origination and Absorption Costs			Above-Market Lease Intangibles			Below-Market Lease Intangibles			Tenant Origination and Absorption Costs			Above-Market Lease Intangibles			Below-Market Lease Intangibles
Cost	$	27,266,610		$	1,547,646		$	(15,713,975	)	$	17,717,819		$	783,115		$	(3,071,253	)
Accumulated amortization	(6,005,248		)	(295,912		)	1,122,616			(3,173,254		)	(198,867		)	475,871
Net amount	$	21,261,362		$	1,251,734		$	(14,591,359	)	$	14,544,565		$	584,248		$	(2,595,382	)

Finite-Lived Intangible Assets, Future Amortization

As of December 31, 2019, amortization of intangible assets over the next five years is expected to be as follows:



	Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles
2020	$	4,909,081	$	197,933	$	(1,559,285	)
2021	4,014,676		179,882		(1,551,783		)
2022	2,979,198		164,607		(1,158,227		)
2023	2,102,056		161,957		(182,928		)
2024	1,897,592		157,327		(168,559		)
Thereafter	5,358,759		390,028		(9,970,577		)
	$	21,261,362	$	1,251,734	$	(14,591,359	)
Weighted-Average Remaining Amortization Period	7.2 years		7.7 years		12.6 years

Schedule Of Capitalized Properties Acquisition

Capitalized acquisition fees paid to the Former Advisor for properties acquired during the year ended December 31, 2019 are as follows:



Property	Amount
Taylor Fresh Foods	$	741,000

Capitalized acquisition fees paid to the Former Advisor for properties acquired during the year ended December 31, 2018 are as follows:



Property	Amount
3M	$	456,000
Cummins	465,000
Northrop Grumman Parcel	9,000
24 Hour Fitness	366,000
Texas Health	222,750
Bon Secours	313,293
Costco	870,000
Total	$	2,702,043