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Investments in Real Estate
3 Months Ended
Mar. 31, 2026
Real Estate [Abstract]  
Investments in Real Estate

Note 3 - Real Estate Assets

 

Depreciation and amortization expense related to real estate assets was $842,669 and $928,578 for the three months ended March 31, 2026 and 2025, respectively.

 

Deconsolidation of GIPDC 3707 14th St. LLC: 7-Eleven, Washington, D.C.

On March 3, 2026, the Company transferred one hundred percent (100%) of the limited liability company interests of GIPDC 3707 14th St. LLC (the "DC Entity"), the entity owning the net lease retail property located at 3707-3711 14th Street NW, Washington, D.C. (the "DC Property"), to Brown Family Enterprises, LLC ("Brown"), a related party, pursuant to an Assignment of Limited Liability Company Interests and Satisfaction Agreement (the "Assignment Agreement"). The transfer was made in full satisfaction and discharge of the Company's outstanding obligations under that certain Retained Balance Promissory Note in the principal amount of $600,000 held by Brown. See Note 9 - Debt for additional information.

As a result of the transfer, the Company lost control of the DC Entity and deconsolidated it from the Company's consolidated financial statements effective March 3, 2026 in accordance with ASC 810, Consolidation. Assets and liabilities removed from the Company's consolidated balance sheet in connection with the deconsolidation are disclosed in the non-cash investing and financing activities section of the Company's consolidated statement of cash flows for the three months ended March 31, 2026.

The Company recognized a loss on transfer of LLC interests of $185,069 in satisfaction of debt in the Company's consolidated statements of operations for the three months ended March 31, 2026.

As additional consideration for the Assignment, the Company retained a contingent right to receive fifty percent (50%) of net sale proceeds from any future sale of the DC Property in excess of a $600,000 return of capital threshold to Brown (the "Participation Right"). The Participation Right has not been assigned a value as of March 31, 2026 given the uncertainty of the timing and amount of any future sale proceeds. The Company will recognize income from the Participation Right, if any, when a sale of the DC Property occurs and the amount is determinable.

The Company continues to serve as the exclusive property manager of the DC Property pursuant to the Assignment Agreement. Pursuant to this arrangement, the Company is entitled to property management fees.

Real Estate Assets Held for Sale — 2383 Lake Harbin Road, Morrow, Georgia (Dollar Tree)

The Company's accounting policy for real estate assets held for sale is described in Note 2 - Summary of Significant Accounting Policies.

On March 23, 2026, the Company entered into an agreement, as amended on April 2, 2026, to sell its Dollar Tree-occupied net lease retail property located in Morrow, Georgia (the "Morrow Property") for a gross purchase price of $1,458,000. Upon execution of the agreement, the Company determined that all held for sale criteria were met and reclassified the Morrow Property as held for sale effective March 23, 2026. Depreciation and amortization on the Morrow Property ceased as of March 23, 2026.

As of March 31, 2026, the Morrow Property is presented as real estate assets held for sale on the Company's consolidated balance sheet at its net carrying value of $1,083,054. No impairment loss was recognized as the estimated fair value less costs to sell exceeded the carrying amount as of March 31, 2026.