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 $650,000. 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 tenancy-in-common investment was accounted for under the equity method and as of December 31, 2021 it had a carrying value of approximately $725,100.

The acquisition of this property was financed in part through the issuance of a Promissory note for $2,715,000 by a financial institution. The Note was issued on August 13, 2021 and can be prepaid at any time without penalty and is secured by the Lazy Boy–- Rockford, 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 year ended December 31, 2021 for the Tenant in Common Investment is as follows:

	Total		Company Portion
Revenue	$	141,906	$	52,278
Total operating expenses		107,988		39,783
Operating income	$	33,918	$	12,495

The condensed balance sheet as of December 31, 2021 for the Tenant in Common Investment is as follows:

	December 31,
	2021
Prepaid expenses	$	522
Deferred rent asset		2,108
Property, net of depreciation		4,341,285
Acquired lease intangible asset, net of amortization		279,850
Due from tenant-in-common		47,350
Total assets	$	4,671,115

Accounts payable	$	845
Accounts payable - related party		13,696
Accrued expenses		4,751
Acquired lease intangible liability, net of amortization		42,993
Mortgage payable net of unamortized debt issuance costs		2,677,446
Equity, GIP Inc. Tenant-in-common		725,082
Equity, Sunny Ridge Tenant-in-common		1,206,302
Total liabilities and equity	$	4,671,115