INVESTMENT IN UNCONSOLIDATED ENTITY

The Company’s investment in unconsolidated entity as of March 31, 2020 and December 31, 2019 is as follows:



	March 31, 2020		December 31, 2019
The TIC Interest	$	10,244,310	$	10,388,588

As discussed in Note 3, REIT I merged with the Company on December 31, 2019. The Company’s income (loss) from investments in unconsolidated entities for the three months ended March 31, 2020 and 2019, is as follows:



	Three Months Ended March 31,
	2020		2019
The TIC Interest	$	20,753	$	80,360
REIT I	—		(6,327		)
	$	20,753	$	74,033

TIC Interest

During 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired an approximate 72.7% interest in an office property in San Clara, California. The remaining approximate 27.3% of undivided interest in the Santa Clara property is held by Hagg Lane II, LLC (an approximate 23.4% interest) and Hagg Lane III, LLC (an approximate 3.9% interest). The manager of Hagg Lane II, LLC and Hagg Lane III, LLC became a member of the Company's board of directors in December 2019. The Santa Clara property does not qualify as a variable interest entity and consolidation is not required as the Company’s TIC Interest does not control the property. Therefore, the Company accounts for the TIC Interest using the equity method. The Company receives approximately 72.7% of the cash flow distributions and recognizes approximately 72.7% of the results of operations. During the three months ended March 31, 2020 and 2019, the Company received $165,031 and $163,899 in cash distributions, respectively.

The following is summarized financial information for the Santa Clara property as of March 31, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019:



	March 31, 2020		December 31, 2019
Assets:
Real estate investments, net	$	30,656,857	$	30,858,240
Cash and cash equivalents	323,226		275,760
Other assets	325,248		228,770
Total assets	$	31,305,331	$	31,362,770
Liabilities:
Mortgage notes payable	$	13,682,552	$	13,746,635
Below-market lease, net	2,989,957		2,953,360
Other liabilities	237,064		68,587
Total liabilities	16,909,573		16,768,582
Total equity	14,395,758		14,594,188
Total liabilities and equity	$	31,305,331	$	31,362,770



	Three Months Ended March 31,
	2020		2019
Total revenues	$	597,920	$	666,421
Expenses:
Interest expense	141,703		142,520
Depreciation and amortization	249,218		248,136
Other expenses	178,457		165,245
Total expenses	569,378		555,901
Net income	$	28,542	$	110,520

REIT I

Prior to the Merger on December 31, 2019, the Company had an approximate 4.8% ownership interest in REIT I. The Company recorded its share of loss of REIT I based on REIT I’s results of operations for the three months ended March 31, 2019. During the three months ended March 31, 2019, the Company received $69,366 in cash distributions related to its interest in REIT I. The following is REIT I's summarized results of operations for the three months ended March 31, 2019:



Total revenues	$	3,288,644
Expenses:
Depreciation and amortization	1,442,060
Interest expense	863,173
Other expenses	1,228,863
Total expenses	3,534,096
Other income:
Other income	113,773
Net loss	$	(131,679	)