Real Estate (Tables)

12 Months Ended

Dec. 31, 2019

Real Estate [Abstract]

Schedule of Real Estate Assets, Net

The Company’s real estate assets, net as of December 31, 2019 and 2018 consisted of the following:

	December 31,
	2019		2018
Land	$	16,815,968	$	5,653,373
Buildings and improvements	52,880,016		20,572,620
In-place lease value intangible	7,476,772		3,448,738
	77,172,756		29,674,731
Less accumulated depreciation and amortization	(4,690,610)		(1,209,392)
Total real estate assets, net	$	72,482,146	$	28,465,339

The corrected allocation of purchase price is illustrated as follows:

	As reported		Revised
Land	$	1,266,560	2,630,873
Buildings and improvements	12,470,886		12,862,042
In-place lease intangible	3,213,492		1,458,023
Total	$	16,950,938	16,950,938

Schedule of Total In-place Lease Intangible Assets and Accumulated Amortization

The amount of total in-place lease intangible asset and the respective accumulated amortization are as follows, in thousands:

	December 31,
	2019		2018
In-place lease value intangible	$	7,476,772	$	3,448,738
Less: In-place leases – accumulated amortization	(2,442,913)		(751,717)
Acquired lease intangible assets, net	$	5,033,858	$	2,697,021

Schedule of Aggregate Future Amortization Amounts From Acquired Lease Intangibles

The estimated aggregate future amortization amounts from acquired lease intangibles are as follows:

December 31,	In-place lease amortization
2020	$	(2,551,421)
2021	(1,647,533)
2022	(747,107)
2023	(87,797)
2024	—
Thereafter	—
Total	$	(5,033,858)

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the fair value of the assets acquired and the liabilities assumed based upon the Company’s purchase price allocation of the Park Ten place and Timberway:

Assets acquired:
Real estate assets	$	20,090,000
Total assets	20,090,000
Liabilities assumed:
Real estate property taxes	$	(505,908)
Escrow-TI-LC	$	(406,274)
Prepaid rents	$	(45,504)
Security deposits	(196,284)
Total liabilities assumed	(1,153,970)
Fair value of net assets acquired	$	18,936,030

The following table summarizes the fair value of the assets acquired and the liabilities assumed based upon the Company’s purchase price allocation of the 1400 Broadfield, 16420 Park Ten and 7915 FM 1960:

Assets acquired:
Real estate assets	$	21,063,750
Total assets	21,063,750
Liabilities assumed:
Real estate Property Taxes	$	(459,648)
Prepaid rents	$	(17,149)
Security deposits	(285,423)
Total liabilities assumed	(762,220)
Fair value of net assets acquired	$	20,301,530

The following table summarizes the fair value of the assets acquired and the liabilities assumed based upon the Company’s purchase price allocation of the 11211 Katy Freeway property acquisition:

Assets acquired:
Real estate assets	$	4,494,536
Total assets	4,494,536
Liabilities assumed:
Prepaid rents	$	(15,966)
Security deposits	(53,459)
Total liabilities assumed	(69,425)
Fair value of net assets acquired	$	4,425,111

The following table summarizes the fair value of the assets acquired and the liabilities assumed based upon the Company’s purchase price allocations of the Richardson Tech property acquisition:

Assets acquired:
Real estate assets	$	5,166,000
Total assets	5,166,000
Liabilities assumed:
Security deposits	$	(45,650)
Total liabilities assumed	(45,650)
Fair value of net assets acquired	$	5,120,350

Assets acquired:
Real estate assets	$	16,950,938
Total assets	16,950,938
Liabilities assumed:
Accounts payable and accrued expenses	$	(194,826)
Security deposits	(26,209)
Total liabilities assumed	(221,035)
Fair value of net assets acquired	$	16,729,903

Business Acquisition, Pro Forma Information

The following unaudited pro forma consolidated financial information for the years ended December 31, 2019 and 2018 is presented as if the Company acquired Spectrum, 11211 Katy Freeway, 1400 Broadfield, 16420 Park Ten, 7915 FM 1960, Park Ten Place and Timberway on January 1, 2018. This information is not necessarily indicative of what the actual results of operations would have been had the Company completed the acquisitions of Spectrum, 11211 Katy Freeway, 1400 Broadfield, 16420 Park Ten, 7915 FM 1960, Park Ten Place and Timberway on January 1, 2018, nor does it support or represent the Company’s future operations (in thousands):

	Years Ended December 31
	2019 (unaudited)		2018 (unaudited)
Revenue	$	12,389	$	13,937
Net loss	$	(2,148)	$	(2,208)

Schedule of Error Corrections and Prior Period Adjustments

Real estate assets reported for the quarterly periods ended March 31, 2019, June 30, 2019 and September 30, 2019, would have been presented as follows if the correction had been recorded in such quarterly period:

	Quarterly Period ended						Year ended
	March 31, 2019		June 30, 2019		September 30, 2019		December 31, 2018
	As reported	Revised	As reported	Revised	As reported	Revised	As reported	Revised
Land	5,163,217	6,527,530	5,163,217	6,527,530	5,163,217	6,527,530	4,289,060	5,653,373
Building and improvements	23,174,211	23,565,367	23,844,403	24,235,559	24,436,798	24,827,954	20,181,464	20,572,620
In-place lease value intangible	5,898,634	4,143,165	5,898,634	4,143,165	5,898,634	4,143,165	5,204,207	3,448,738
	34,236,062	34,236,062	34,906,254	34,906,254	35,498,649	35,498,649	29,674,731	29,674,731
Less accumulated amortization	(2,045,840)	(1,845,893)	(2,962,756)	(2,562,862)	(3,846,985)	(3,247,144)	(1,209,392)	(1,209,392)
Total real estate assets, net	32,190,222	32,390,169	31,943,498	32,343,392	31,651,664	32,251,505	28,465,339	28,465,339

Depreciation and amortization expense and net loss for the quarterly periods ended March 31, 2019, June 30, 2019 and September 30, 2019, would have been presented as follows if the correction had been recorded in such quarterly period:

	Quarterly Period ended
	March 31, 2019		June 30, 2019		September 30, 2019
	As reported	Revised	As reported	Revised	As reported	Revised
Depreciation and amortization	836,448	636,501	916,916	716,969	884,229	684,282
Net loss	(460,922)	(260,975)	(446,893)	(246,946)	(539,544)	(339,597)
	Three months ended March 31, 2019		Six months ended June 30, 2019		Nine months ended September 30, 2019
	As reported	Revised	As reported	Revised	As reported	Revised
Depreciation and amortization	836,448	636,501	1,753,364	1,353,470	2,637,593	2,037,752
Net loss	(460,922)	(260,975)	(907,815)	(507,921)	(1,447,359)	(847,518)