Investments in Real Estate

6 Months Ended

Jun. 30, 2020

Real Estate Properties [Line Items]

Real Estate Owned [Text Block]

4. Investments in Real Estate

As of June 30, 2020 and December 31, 2019, investments in real estate, net, consisted of the following:

	June 30, 2020			December 31, 2019
Building and building improvements	$	227,034,501		$	199,478,457
Land		24,081,716			19,667,140
Tenant improvements		9,077,830			4,314,057
Furniture, fixtures and equipment		2,825,943			2,749,914
Accumulated depreciation		(7,323,710	)		(2,865,137	)
Investments in real estate, net	$	255,696,280		$	223,344,431

On February 14, 2020, the Company partnered with Waterford Property Company (“Waterford”) through a joint venture (the “Lakes Joint Venture”) to acquire a fee simple interest in Lakes at West Covina (the “Lakes”), a four story, two building office complex located in West Covina, California, for $40.9 million (exclusive of closing costs). The Lakes Joint Venture acquired the Lakes through a combination of $27.9 million of property-level debt from Wells Fargo Bank, N.A. and equity of $16.6 million funded from the Lakes Joint Venture (consisting of $15.7 million funded by the Company and $0.8 million funded by Waterford). Neither Waterford nor the seller of the Lakes are affiliates of the Company or its sponsor.

During 2019, the Company, through three joint ventures, purchased Anzio Apartments (the Anzio Apartments), a multifamily asset located in Lawrenceville, Georgia, for $59.2 million (excluding closing costs), Two Liberty Center (the “Two Liberty Center”), a class “A” office asset located in Ballston, Virginia, for $91.2 million (excluding closing costs), and Ezlyn (the “Ezlyn”), a multifamily asset located in Westminster, Colorado for $81.3 million (exclusive of closing costs).

The following table summarizes the purchase price allocation of the property acquired during the six months ended June 30, 2020:

	Lakes at West Covina
Building and building improvements	$	26,806,026
Land		4,414,576
Tenant improvements		4,205,936
In-place lease intangibles		3,909,726
Lease origination costs		1,726,732
Above-market lease intangibles		5,753
Below-market lease intangibles		(44,030	)
Total purchase price(1)	$	41,024,719

(1) Purchase price is inclusive of closing costs.