
	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 Company identifies and records the value of acquired lease intangibles at the property acquisition date. Such intangibles include the value of acquired in-place leases and above and below-market leases. Acquired lease intangibles are amortized over the leases' remaining terms. With respect to all properties owned by the Company, the Company considers all of the in-place leases to be market rate leases.


	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


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)

Acquisition fees incurred were $1,127,500 and $539,438 for the years ended December 31, 2019 and 2018, respectively. The acquisition fee has been capitalized and added to the real estate assets, at cost, in the accompanying consolidated balance sheets. Asset management fees incurred were $309,006 and $84,721 for the years ended December 31, 2019 and 2018, respectively. Asset management fees are captioned as such in the accompanying consolidated statements of operations.

On November 21, 2019, the Company acquired a fee simple interest in two properties located in Houston, Texas: the first, two three-story office buildings comprising approximately 91,215 rentable square feet, each building commonly referred to as Park Ten I and II and collectively as Park Ten Place; the second, a three-story office building comprising approximately 130,828 square feet, commonly referred to as Timberway.

The properties were acquired from an unrelated third party for a purchase price of $19,600,000, exclusive of closing costs. The Company financed the acquisitions of Park Ten Place and Timberway with proceeds from the Company’s public offering and funds available under the Company's master credit facility.

An acquisition fee of approximately $490,000 was earned by Advisor in connection with the acquisition of Park Ten Place and Timberway.

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

On October 1, 2019, the Company acquired a fee simple interest in three properties located in Houston, Texas: the first, a six-story office building comprising approximately 102,893 square feet, commonly referred to as the 1400 Broadfield Building; the second, a five-story office building comprising approximately 83,760 square feet, commonly referred to as the 16420 Park Ten Building; and the third, a three-story office building comprising approximately 67,581 square feet, commonly referred to as the 7915 FM 1960 Building.

The properties were acquired from an unrelated third party, for a purchase price of $20,550,000, exclusive of closing costs. The Company financed the acquisition of the three properties with proceeds from the Company’s public offering.

An acquisition fee of approximately $513,750 was earned by Advisor in connection with the acquisition of 1400 Broadfield, 16420 Park Ten and 7915 FM 1960.

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

On January 10, 2019, the Company acquired a fee simple interest in an office building containing approximately 78,922 square feet of office space located in Houston, Texas. The property is commonly known as 11211 Katy Freeway. The 11211 Katy Freeway was acquired from an unrelated third-party seller, for a purchase price, as amended, of $4,370,786, exclusive of closing costs. The Company financed the acquisition of 11211 Katy Freeway with proceeds from the Company’s public offering and loan proceeds from the Company's master credit facility.

An acquisition fee of approximately $123,750 was earned by Hartman XXI Advisors LLC in connection with the purchase of 11211 Katy Freeway.

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

On March 14, 2018, the Company, through Hartman Richardson Tech Center, LLC, a wholly-owned subsidiary of the OP, acquired a fee simple interest in a four building, multi-tenant flex/R&D property containing approximately 96,660 square feet of office space and located in Richardson, Texas. The property is commonly known as Richardson Tech.

An acquisition fee of approximately $126,000 was earned by Hartman XXI Advisors LLC in connection with the purchase of Richardson Tech Center.

Richardson Tech was acquired from an unrelated third-party seller, for a purchase price, as amended, of $5,040,000, exclusive of closing costs. The Company financed the payment of the purchase price for Richardson Tech with proceeds from the Offering and $2,520,000 mortgage loan proceeds from a bank.

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

On December 27, 2018, the Company, through Hartman Spectrum, LLC, a wholly-owned subsidiary of the OP, acquired a fee simple interest in an office building containing approximately 175,390 square feet of office space and located in San Antonio, Texas. The property is commonly known as the Spectrum Building.

An acquisition fee of approximately $413,438 was earned by Hartman XXI Advisors LLC in connection with the purchase of Spectrum Building.

The Spectrum Building was acquired from Pace-Spectrum, LLC, an unrelated third party, for a purchase price, including a buyers auction premium, of $16,537,500, exclusive of closing costs. Hartman Spectrum LLC financed the payment of the purchase price for the Spectrum Building with proceeds from the Company’s public offering and loan proceeds from a bank.


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

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):