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 our 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. Hornstorm owns 50% of Sunny Ridge and also contributed $600,000 of $950,000 Redeemable Non-Controlling Interest contribution for the Plant City, FL property. The Rockford, IL property was accounted for under the equity method and as of September 30, 2021 it had a value of $717 thousand.

The acquisition of this property was financed in part through the issuance of a Promissory note for $2,715,000 by a financial institution as part of a Tenants in Common ownership structure. The Note was issued on August 13, 2021 and can be prepaid at any time without penalty and is secured by the Lazy Boy - Rockville, IL property. The Company's share of this debt is approximately $1.0 million. The Company’s President has personally guaranteed the repayment of the $2.7 million loan. The loan has normal covenants which includes DSCR 1.50:1.0.

The condensed income statement for the nine months ended September 30, 2021 for the Tenant in Common Investment is as follows:


	Total	Company Portion
Revenue	$ 48,757	$ 17,943
Total operating expenses	35,862	13,193
Operating income	$ 12,895	$ 4,750

The condensed balance sheet as of September 30, 2021 for the Tenant in Common Investment is as follows:

	September 30,
	2021
Property, net of depreciation	$	4,358,785
Prepaid expenses		1,088
Deferred rent asset		527
Acquired lease intangible asset, net of amortization		292,006
Due from tenant-in-common		39,257
Total assets	$	4,691,663

Mortgage payable net of unamortized debt issuance costs	$	2,671,742
Prepaid rent		29,900
Accrued expenses		5,877
Accounts payable - related party		4,726
Acquired lease intangible liability, net of amortization		44,860
Equity, GIP Inc. Tenant-in-common		717,337
Equity, Sunny Ridge Tenant-in-common		1,217,221
Total liabilities and equity	$	4,691,663