On August 13, 2021, the Company entered into a tenancy-in-common (“TIC”) structure whereby the TIC acquired a 15,288 square foot single tenant building in Rockford, IL for total consideration of approximately $4.5 million. The Company acquired a 36.8% interest in the TIC acquisition with Sunny Ridge HHP, LLC (“Sunny Ridge”) holding the remaining TIC interest. Funding for the Company’s interest was

primarily funded through a Redeemable Non-Controlling Interest Contribution from Mr. Hornstrom to one of the Company's subsidiaries for $0.65 million. The remainder of the purchase price of the property was funded by Sunny Ridge of $1.2 million and debt financing of approximately $2.7 million. Mr. Hornstrom owns 50% of Sunny Ridge and also contributed $600,000 of $950,000 Redeemable Non-Controlling Interest contribution for the Plant City, FL property.

On April 1, 2022, the TIC refinanced the debt reducing the total debt outstanding to $2.1 million with an interest rate of 3.85% from April 1, 2022 through and until March 31, 2027. Effective April 1, 2027, the interest rate adjusts to the 5-year Treasury plus 2.5% and subject to a floor of 3.85%. The Company’s CEO entered into a guaranty agreement pursuant to which he guaranteed the payment obligations under the promissory note if they become due as a result of certain “bad-boy” provisions, individually and on behalf of the Operating Partnership. The promissory note requires the TIC to maintain a debt service coverage ratio of 1.50:1:00 in addition to a 54% loan to value ratio. As of December 31, 2022, the Company was in compliance with all covenants.

In conjunction with the refinancing of the debt, the Company contributed $455,888 to the TIC increasing the Company's ownership to 50% interest and reducing Sunny Ridge's interest to 50%. The Rockford, IL property was accounted for under the equity method and as of December 31, 2022 it had a value of $1,218,268.

The condensed income statements for the twelve months ended December 31, 2022 and 2021 for the tenancy-in-common investment is as follows:


	Twelve Months ended Dec 31,
	2022			2021
Total revenue	$	372,556		$	141,906
Total expenses	$	262,942		$	107,988
Operating income		109,614			33,918
Loss on debt extinguishment		(31,851	)		-
Net income	$	77,763		$	33,918
GIP, LP's Share	$	37,298		$	12,495

The condensed balance sheets as of December 31, 2022 and December 31, 2021 for the tenants in common investment is as follows:



	As of December 31,		As of December 31,
	2022		2021

Net real estate investments	$	4,503,120	$	4,621,135
Deferred rent asset		7,132		2,108
Prepaid expenses		343		522
Due from related party		21,710		42,624
Total Assets	$	4,532,305	$	4,666,389

Accounts payable and accrued expenses	$	6,738	$	14,566
Prepaid rent		30,550		-
Acquired lease intangible liabilities, net		35,561		42,993
Mortgage loan, net of unamortized debt issuance costs		2,088,116		2,677,446
Total Liabilities	$	2,160,965	$	2,735,005

GIP, LP	$	1,218,268	$	725,082
SUNNY RIDGE MHP, LLC		1,153,072		1,206,302
Total Tenants in Common Equity	$	2,371,340	$	1,931,384
Total Liabilities and Tenants in Common Equity	$	4,532,305	$	4,666,389