Summit Healthcare REIT 10-K 25 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Mar. 16, 2020	Jun. 30, 2019
Cover [Abstract]
Document Type	10-K
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	Summit Healthcare REIT, Inc
Entity Central Index Key	0001310383
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		23,027,978
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	true

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 13,260,000	$ 11,463,000
Restricted cash	2,817,000	3,493,000
Real estate properties, net	46,513,000	67,002,000
Notes receivable	575,000	730,000
Tenant and other receivables, net	3,812,000	4,666,000
Deferred leasing commissions, net	607,000	1,133,000
Other assets, net	594,000	319,000
Equity-method investments	13,131,000	9,719,000
Total assets	81,309,000	98,525,000
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities	2,504,000	3,901,000
Security deposits	664,000	1,208,000
Loans payable, net of debt issuance costs	45,577,000	64,050,000
Total liabilities	48,745,000	69,159,000
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding at December 31, 2019 and 2018	0	0
Common stock, $0.001 par value; 290,000,000 shares authorized; 23,027,978 shares issued and outstanding at December 31, 2019 and 2018	23,000	23,000
Additional paid-in capital	116,184,000	115,950,000
Accumulated deficit	(83,843,000)	(86,956,000)
Total stockholders' equity	32,364,000	29,017,000
Noncontrolling interests	200,000	349,000
Total equity	32,564,000	29,366,000
Total liabilities and equity	$ 81,309,000	$ 98,525,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	290,000,000	290,000,000
Common stock, shares issued	23,027,978	23,027,978
Common stock, shares outstanding	23,027,978	23,027,978

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenues:
Tenant reimbursements	$ 0	$ 1,128,000
Total rental revenues	6,862,000	9,392,000
Interest income from notes receivable	29,000	42,000
Total operating revenue	8,065,000	10,136,000
Expenses:
Property operating costs	862,000	1,223,000
General and administrative	4,476,000	4,004,000
Depreciation and amortization	1,750,000	3,000,000
Total operating expenses	7,088,000	8,227,000
Other operating income:
Gain on sale of real estate properties	4,274,000	0
Operating income	5,251,000	1,909,000
Income from equity-method investees	184,000	455,000
Other income	207,000	100,000
Interest expense	(2,612,000)	(3,625,000)
Gain on notes receivable	0	186,000
Income (loss) from continuing operations	3,030,000	(975,000)
Discontinued operations:
Gain on disposition of Friendswood TRS	0	109,000
Income from discontinued operations	0	109,000
Net income (loss)	3,030,000	(866,000)
Noncontrolling interests' share in net (income) loss	83,000	(50,000)
Net income (loss) applicable to common stockholders	$ 3,113,000	$ (916,000)
Basic:
Income (loss) from continuing operations	$ 0.14	$ (0.04)
Net income (loss) applicable to common stockholders	0.14	(0.04)
Diluted:
Income (loss) from continuing operations	0.13	(0.04)
Net income (loss) applicable to common stockholders	$ 0.13	$ (0.04)
Weighted average shares used to calculate earnings per common share:
Basic	23,027,978	23,027,978
Diluted	23,506,478	23,027,978
Rental revenues [Member]
Revenues:
Total rental revenues	$ 6,862,000	$ 8,264,000
Financial Service, Other [Member]
Revenues:
Acquisition and asset management fees	$ 1,174,000	$ 702,000

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total Stockholders' Equity	Noncontrolling Interests	Total
Balance at Dec. 31, 2017	$ 23,000	$ 117,349,000	$ (86,040,000)	$ 31,332,000	$ 564,000	$ 31,896,000
Balance (in shares) at Dec. 31, 2017	23,027,978
Stock-based compensation	$ 0	100,000	0	100,000	0	100,000
Distributions declared	0	(1,499,000)	0	(1,499,000)	0	(1,499,000)
Distributions paid to noncontrolling interests	0	0	0	0	(265,000)	(265,000)
Net income (loss)	0	0	(916,000)	(916,000)	50,000	(866,000)
Balance at Dec. 31, 2018	$ 23,000	115,950,000	(86,956,000)	29,017,000	349,000	29,366,000
Balance (in shares) at Dec. 31, 2018	23,027,978
Stock-based compensation	$ 0	234,000	0	234,000	0	234,000
Distributions paid to noncontrolling interests	0	0	0	0	(66,000)	(66,000)
Net income (loss)	0	0	3,113,000	3,113,000	(83,000)	3,030,000
Balance at Dec. 31, 2019	$ 23,000	$ 116,184,000	$ (83,843,000)	$ 32,364,000	$ 200,000	$ 32,564,000
Balance (in shares) at Dec. 31, 2019	23,027,978

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ 3,030,000	$ (866,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of debt issuance costs	134,000	214,000
Depreciation and amortization	1,750,000	3,000,000
Straight-line rents	(357,000)	(629,000)
Write-off of debt issuance costs	0	94,000
Stock-based compensation expense	234,000	100,000
Gain on sale of real estate properties	(4,274,000)	0
Gain on disposition of Friendswood TRS	0	(109,000)
Gain on note receivable	0	(186,000)
Income from equity-method investees	(184,000)	(455,000)
Change in operating assets and liabilities:
Tenant and other receivables, net	332,000	632,000
Other assets	(91,000)	(94,000)
Accounts payable and accrued liabilities	261,000	404,000
Net cash provided by operating activities	835,000	2,105,000
Cash flows from investing activities:
Proceeds from sale of real estate properties, net of transaction costs	24,852,000	0
Real estate acquisition	0	(715,000)
Real estate additions	0	(75,000)
Issuance of notes receivable	(253,000)	0
Investments in equity-method investees	(5,060,000)	(1,313,000)
Distributions received from equity-method investees	1,224,000	728,000
Payments from notes receivable	408,000	4,282,000
Net cash provided by investing activities	21,171,000	2,907,000
Cash flows from financing activities:
Proceeds from issuance loans payable	3,872,000	21,369,000
Payments of loans payable	(22,982,000)	(17,876,000)
Distributions paid	(1,499,000)	0
Distributions paid to noncontrolling interests	(66,000)	(265,000)
Debt issuance costs	(210,000)	(582,000)
Net cash (used in) provided by financing activities	(20,885,000)	2,646,000
Net increase in cash, cash equivalents and restricted cash	1,121,000	7,658,000
Cash, cash equivalents and restricted cash - beginning of year	14,956,000	7,298,000
Cash, cash equivalents and restricted cash - end of year	16,077,000	14,956,000
Supplemental disclosure of cash flow information:
Cash paid for interest:	2,289,000	3,002,000
Supplemental disclosure of non-cash financing activities:
Distributions declared not paid	$ 0	$ 1,499,000

Organization

Organization	12 Months Ended
	Dec. 31, 2019
Organization
Organization	1. Organization Summit Healthcare REIT, Inc. (“Summit”) is a real estate investment trust that owns 100% of three properties, 95.3% of four properties, a 10% equity interest in an unconsolidated equity-method investment that holds 17 properties, a 35% equity interest in an unconsolidated equity-method investment that holds two properties, a 20% equity interest in an unconsolidated equity-method investment that holds two properties, a 10% equity interest in an unconsolidated equity-method investment that holds nine properties, a 10% equity interest in an unconsolidated equity-method investment that holds six properties and a 15% equity interest in an unconsolidated equity-method investment that holds 14 properties. Summit is a Maryland corporation, formed in 2004 under the General Corporation Law of Maryland for the purpose of investing in and owning real estate. As used in these notes, the “Company”, “we”, “us” and “our” refer to Summit and its consolidated subsidiaries, except where the context otherwise requires. We conduct substantially all of our operations through Summit Healthcare Operating Partnership, L.P. (the “Operating Partnership”), which is a Delaware limited partnership. We own a 99.88% general partner interest in the Operating Partnership, and Cornerstone Realty Advisors, LLC (“CRA”), a former affiliate, owns a 0.12% limited partnership interest. Our financial statements and the financial statements of the Operating Partnership are consolidated in the accompanying consolidated financial statements. Cornerstone Healthcare Partners LLC We own 95% of Cornerstone Healthcare Partners LLC (“CHP LLC”), which was formed in 2012, and the remaining 5% noncontrolling interest is owned by Cornerstone Healthcare Real Estate Fund, Inc. (“CHREF”), an affiliate of CRA. CHP LLC is consolidated with our financial statements and owns four properties (the “JV Properties”) with another partially owned subsidiary. As of December 31, 2019, we own a 95.3% interest in the four JV Properties, and CHREF owns a 4.7% interest. See Note 11 for the disposition of real estate properties which includes one of the JV Properties. Summit Union Life Holdings, LLC – Equity-Method Investment In April, 2015, through our Operating Partnership, we entered into a limited liability company agreement with Best Years, LLC (“Best Years”), an unrelated entity and a U.S.-based affiliate of Union Life Insurance Co, Ltd. (a Chinese corporation), and formed Summit Union Life Holdings, LLC (the “SUL JV”). The SUL JV is not consolidated in our consolidated financial statements and is accounted for under the equity-method in our consolidated financial statements (see Note 5). As of December 31, 2019 and 2018, we have a 10% interest in the SUL JV which owns 17 properties. Summit Fantasia Holdings, LLC – Equity-Method Investment In September 2016, through our Operating Partnership, we entered into a limited liability company agreement with Fantasia Investment III LLC (“Fantasia”), an unrelated entity and a U.S.-based affiliate of Fantasia Holdings Group Co., Limited (a Chinese corporation listed on the Stock Exchange of Hong Kong (HKEX)), and formed Summit Fantasia Holdings, LLC (the “Fantasia JV”). The Fantasia JV is not consolidated in our consolidated financial statements and is accounted for under the equity-method in our consolidated financial statements. As of December 31, 2019 and 2018, we have a 35% interest in the Fantasia JV which owns two properties. Summit Fantasia Holdings II, LLC – Equity-Method Investment In December 2016, through our Operating Partnership, we entered into a limited liability company agreement with Fantasia, and formed Summit Fantasia Holdings II, LLC (the “Fantasia II JV”). The Fantasia II JV is not consolidated in our consolidated financial statements and is accounted for under the equity-method in our consolidated financial statements. As of December 31, 2019 and 2018, we have a 20% interest in the Fantasia II JV which owns two properties. Summit Fantasia Holdings III, LLC - Equity-Method Investment In July 2017, through our Operating Partnership, we entered into a limited liability company agreement with Fantasia and formed Summit Fantasia Holdings III, LLC (the “Fantasia III JV”). The Fantasia III JV is not consolidated in our consolidated financial statements and is accounted for under the equity-method in the Company’s consolidated financial statements. As of December 31, 2019 and 2018, we have a 10% interest in the Fantasia III JV which owns nine properties. Summit Fantasy Pearl Holdings, LLC – Equity-Method Investment In October 2017, through our Operating Partnership, we entered into a limited liability company agreement with Fantasia, Atlantis Senior Living 9, LLC, a Delaware limited liability company (“Atlantis”), and Fantasy Pearl LLC, a Delaware limited liability company (“Fantasy”), and formed Summit Fantasy Pearl Holdings, LLC (the “FPH JV”). The FPH JV is not consolidated in our consolidated financial statements and is accounted for under the equity-method in the Company’s consolidated financial statements. As of December 31, 2019 and 2018, we have a 10% interest in the FPH JV which owns six properties. Indiana JV– Equity-Method Investment In February 2019, through our wholly-owned subsidiary, Summit Indiana, LLC, we formed a new joint venture, a Delaware limited liability company (the “Indiana JV”). On March 13, 2019, we entered into a Limited Liability Company Agreement (the “Indiana JV Agreement”) with two unrelated parties: a real estate holding company and a global institutional asset management firm, both Delaware limited liability companies. The Indiana JV is not consolidated in our consolidated financial statements and is accounted for under the equity-method. As of December 31, 2019, we have a 15% interest in the Indiana JV which owns 14 properties. Summit Healthcare Asset Management, LLC (TRS) Summit Healthcare Asset Management, LLC (“SAM TRS”) is our wholly-owned taxable REIT subsidiary (“TRS”). We serve as the manager of the SUL JV, Fantasia JV, Fantasia II JV, Fantasia III JV and FPH JV (collectively, our “Equity-Method Investments”), and provide management services in exchange for fees and reimbursements. All acquisition fees and asset management fees earned by us are paid to SAM TRS and expenses incurred by us, as the manager, are reimbursed from SAM TRS. See Notes 5 and 7 for further information.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The summary of significant accounting policies presented below is designed to assist in understanding our consolidated financial statements. Such consolidated financial statements and accompanying notes are the representations of our management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America, or GAAP, in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, the Operating Partnership (of which the Company owns 99.88%) and CHP, LLC (of which the Company owns 95%). All intercompany accounts and transactions have been eliminated in consolidation. The Financial Accounting Standards Board (“FASB”) issued Accounting Standard Codification (“ASC”) 810, Consolidation , which addresses how a business enterprise should evaluate whether it has a controlling interest in an entity through means other than voting rights and accordingly should consolidate the entity. Before concluding that it is appropriate to apply the voting interest consolidation model to an entity, an enterprise must first determine that the entity is not a variable interest entity. We evaluate, as appropriate, our interests, if any, in joint ventures and other arrangements to determine if consolidation is appropriate. Use of Estimates The preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We base these estimates on various assumptions that we believe to be reasonable under the circumstances, and these estimates form the basis for our judgments concerning the carrying values of assets and liabilities that are not readily apparent from other sources. We periodically evaluate these estimates and judgments based on available information and experience. Actual results could differ from our estimates under different assumptions and conditions. If actual results significantly differ from our estimates, our financial condition and results of operations could be materially impacted. Cash and Cash Equivalents We consider all short-term, highly liquid investments that are readily convertible to cash with a maturity of three months or less at the time of purchase to be cash equivalents. As of December 31, 2019, we had cash accounts in excess of FDIC-insured limits. We do not believe we are exposed to any significant credit risk on cash and cash equivalents. Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown on the consolidated statements of cash flows: December 31, December 31, 2019 2018 Cash and cash equivalents $ 13,260,000 $ 11,463,000 Restricted cash 2,817,000 3,493,000 Total cash, cash equivalents, and restricted cash shown on the consolidated statements of cash flows $ 16,077,000 $ 14,956,000 Investments in Real Estate and Depreciation We allocate the purchase price of our properties in accordance with ASC 805 – Business Combinations . If the acquisition does not meet the definition of a business, we record the acquisition as an asset acquisition. For transactions that are business combinations, acquisition costs are expensed as incurred. For transactions that are an asset acquisition, acquisition costs are capitalized as incurred. Upon an asset acquisition of a property, we allocate the purchase price of the property based upon the relative fair value of the tangible and intangible assets acquired and liabilities assumed, which generally consists of land, buildings, site improvements, and furniture and fixtures. We allocate the purchase price to tangible assets of an acquired property by valuing the property as if it were vacant. We are required to make subjective assessments as to the estimated useful lives of our depreciable assets. We consider the period of future benefit of the assets to determine the appropriate estimated useful lives. Depreciation of our assets is being charged to expense on a straight-line basis over the estimated useful lives. We depreciate the fair value allocated to building and improvements over estimated useful lives ranging from 15 to 39 years. We estimate the value of furniture and fixtures based on the assets’ depreciated replacement cost. We depreciate the fair value allocated to furniture and fixtures over estimated useful lives ranging from three to six years. Assets held for sale are not depreciated. Impairment of Real Estate Assets We evaluate the recoverability of the carrying value of our real estate properties on a property-by-property basis. We review our properties for recoverability when events or circumstances, including significant physical changes in the property, significant adverse changes in general economic conditions and significant deteriorations of the underlying cash flows of the property, indicate that the carrying amount of the property may not be fully recoverable. The need to recognize an impairment charge is based on estimated undiscounted future cash flows from a property compared to the carrying value of that property. If recognition of an impairment charge is necessary, it is measured as the amount by which the carrying amount of the property exceeds the fair value of the property. We recorded no impairment charges in 2019 and 2018. Fair Value Measurements Fair value represents the estimate of the proceeds to be received, or paid in the case of a liability, in a current transaction between willing parties. ASC 820, Fair Value Measurement, establishes a fair value hierarchy to categorize the inputs used in valuation techniques to measure fair value. Inputs are either observable or unobservable in the marketplace. Observable inputs are based on market data from independent sources and unobservable inputs reflect the reporting entity’s assumptions about market participant assumptions used to value an asset or liability. Financial assets and liabilities are categorized based on the inputs to the valuation techniques as follows: Level 1. Quoted prices in active markets for identical instruments. Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value are classified according to the lowest level input that is significant to their valuation. A financial instrument that has a significant unobservable input along with significant observable inputs may still be classified as a Level 3 instrument. We generally determine or calculate the fair value of financial instruments using quoted market prices in active markets when such information is available or use appropriate present value or other valuation techniques, such as discounted cash flow analyses, incorporating available market discount rate information for similar types of instruments and our estimates for non-performance and liquidity risk. These techniques are significantly affected by the assumptions used, including the discount rate, credit spreads, and estimates of future cash flow. There were no assets or liabilities measured at fair value on a nonrecurring basis during the year ended December 31, 2019. Fair Value Measurement of Financial Instruments Our consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, notes receivable, deposits, tenant and other receivables, certain other assets, accounts payable and accrued liabilities, security deposits and loans payable. With the exception of the Friendswood TRS note receivable (see Note 6) and loans payable discussed below, we consider the carrying values to approximate fair value for such financial instruments because of the short period of time between origination of the instruments and their expected payment. As of December 31, 2019 and 2018, the fair value of the Friendswood TRS note receivable (see Note 6) was $505,000 compared to the carrying value of $484,000. The fair value of the note receivable was estimated based on cash flow analysis at a weighted-average discount rate of 4.6%. As the inputs to our valuation estimate are neither observable in nor supported by market activity, our notes receivable are classified as Level 3 assets within the fair value hierarchy. As of December 31, 2019 and 2018, the fair value of loans payable was $47.4 million and $66.5 million, compared to the principal balance (excluding debt discount) of $47.0 million and $66.1 million, respectively. The fair value of loans payable was estimated using lending rates available to us for financial instruments with similar terms and maturities. To estimate fair value as of December 31, 2019, we utilized discount rates ranging from 4.2% to 6.0% and a weighted average discount rate of 4.6%. As the inputs to our valuation estimate are neither observable in nor supported by market activity, our loans payable are classified as Level 3 liabilities within the fair value hierarchy. At December 31, 2019 and 2018, we do not have any significant financial assets or financial liabilities that are measured at fair value on a recurring basis in our consolidated financial statements. Variable Interest Entities We analyze our contractual and/or other interests to determine whether such interests constitute an interest in a variable interest entity (“VIE”) in accordance with ASC 810, Consolidation , and, if so, whether we are the primary beneficiary. If we are determined to be the primary beneficiary of a VIE, we must consolidate the VIE. A VIE is an entity with insufficient equity investment or in which the equity investors lack some of the characteristics of a controlling financial interest. In determining whether it is the primary beneficiary, we consider, among other things, whether it has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, including, but not limited to, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. We also consider whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. Tenant and Other Receivables and Valuation of Receivables Tenant and other receivables are comprised of rental and tenant reimbursement billings due from tenants, the cumulative amount of future adjustments necessary to present rental income on a straight-line basis, asset management fees and distributions receivable. Tenant receivables for rental revenues are recorded at the original amount earned. Management assesses the likelihood of realizing other receivables on an ongoing basis and provides for allowances as such balances, or portions thereof, are estimated to become uncollectible. Deferred Financing Costs Costs incurred with potential financing arrangements are recorded as deferred debt issuance costs. Costs incurred in connection with completed debt financing are recorded as debt issuance costs. Debt issuance costs are amortized using the straight-line basis which approximates the effective interest rate method, over the contractual terms of the respective financings, and are presented net of loans payable in loans payable, net of debt issuance costs, in the consolidated balance sheets. Deferred Leasing Commissions Leasing commissions (paid to CRA prior to April 1, 2014) were capitalized at cost and are being amortized on a straight-line basis over the related lease term. As of December 31, 2019 and 2018, total costs incurred were $1.1 million and $1.9 million, respectively, and the unamortized balance was approximately $0.6 million and $1.1 million, respectively. Amortization expense for the years ended December 31, 2019 and 2018 was approximately $51,000 and $140,000, respectively. Other Assets Other assets consist primarily of deferred financing costs, prepaid insurance, property taxes and other. Additionally, other assets will be amortized to expense over their future service periods. Balances without future economic benefit are expensed as they are identified. Equity-Method Investments We report our investments in unconsolidated entities, over whose operating and financial policies we have the ability to exercise significant influence but not control, under the equity method of accounting. Under this method of accounting, our pro rata share of the applicable entity’s earnings or losses is included in our consolidated statements of operations. We initially record our investments based on either the carrying value for properties contributed or the cash invested. We evaluate our equity-method investments for impairment whenever events or changes in circumstances indicate that the carrying value of our investments may exceed the fair value. If it is determined that a decline in the fair value of our investments is not temporary, and if such reduced fair value is below its carrying value, an impairment is recorded. Determining fair value involves significant judgment. Our estimates consider available evidence including the present value of the expected future cash flows discounted at market rates, general economic conditions and other relevant factors. We did not record any impairments related to our equity-method investments for the years ended December 31, 2019 and 2018. Revenue Recognition On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers (Topic 606) . Our adoption of this new revenue recognition standard did not have a significant impact on our consolidated financial statements as our rental revenue, including tenant reimbursements, relates to triple net leases, which are excluded from this standard. Additionally, interest income from our notes receivable is excluded from this standard. Acquisition fees arise from contractual agreements with our joint venture partners and are earned and paid at the time we close an acquisition, therefore, satisfying our performance obligations at that time. We earn our asset management fees based on a percentage of the purchase price or equity raised. As the manager, our duty is to manage the day-to-day operations of the special-purpose entities which own the properties. Asset management fees are recognized as a single performance obligation (managing the properties) comprised of a series of distinct services (handling issues with our tenants, etc.). We believe that the overall service of asset management is substantially the same each day and has the same pattern of performance over the term of the agreement. As a result, each day of service represents a performance obligation satisfied at that point in time. These fees are recognized at the end of each period for services performed during that period, billed monthly and paid quarterly. Stock-Based Compensation We record stock-based compensation expense for share-based payments to employees and directors, including grants of stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. Compensation expense is recognized ratably over the vesting term and is included in general and administrative expense in our consolidated statements of operations. Forfeitures are recognized as they occur. See Note 10 for further information. Noncontrolling Interest in Consolidated Subsidiary Noncontrolling interest relates to the interest in the consolidated entities that are not wholly-owned by us. As of December 31, 2019 and 2018, the noncontrolling interest mainly relates to CHP, LLC. ASC 810‑10‑65, Consolidation , clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. ASC 810‑10‑65 also requires consolidated net income to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest and requires disclosure, on the face of the consolidated statements of operations, of the amounts of consolidated net income attributable to the parent and to the noncontrolling interest. We periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling interest as permanent equity in the consolidated balance sheets. Any noncontrolling interest that fails to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (a) the carrying amount, or (b) its redemption value as of the end of the period in which the determination is made. Income Taxes We have elected to be taxed as a REIT, under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”) beginning with our taxable year ending December 31, 2006. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to currently distribute at least 90% of the REIT’s ordinary taxable income to stockholders. As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service were to grant us relief under certain statutory provisions. Such an event could materially and adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we will be organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate for the foreseeable future in such a manner so that we will remain qualified as a REIT for federal income tax purposes. Given the applicable statute of limitations, we generally are subject to audit by the Internal Revenue Service (“IRS”) for the year ended December 31, 2016 and subsequent years, and state income tax returns are subject to audit for the year ended December 31, 2015 and subsequent years. We have elected to treat SAM TRS as a taxable REIT subsidiary, which generally may engage in any business, including the provision of customary or non-customary services for our tenants. SAM TRS is treated as a regular corporation and is subject to federal income tax and applicable state income and franchise taxes at regular corporate rates. SAM TRS has deferred tax assets related to their NOL (which expires in or after 2035 for federal and state) for a total of $1,586,000, which has a full valuation allowance as of December 31, 2019 and 2018. Due to the losses incurred and the full valuation allowance on deferred tax assets, there was no tax provision related to SAM TRS in 2019 and 2018. Uncertain Tax Positions In accordance with the requirements of ASC 740, Income Taxes, favorable tax positions are included in the calculation of tax liabilities if it is more likely than not that our adopted tax position will prevail if challenged by tax authorities. As a result of our REIT status, we are able to claim a dividends-paid deduction on our tax return to deduct the full amount of common dividends paid to stockholders when computing our annual taxable income, which results in our taxable income being passed through to our stockholders. A REIT is subject to a 100% tax on the net income from prohibited transactions. A “prohibited transaction” is the sale or other disposition of property held primarily for sale to customers in the ordinary course of a trade or business. There is a safe harbor provision which, if met, expressly prevents the Internal Revenue Service from asserting the prohibited transaction test. We have no income tax expense, deferred tax assets or deferred tax liabilities associated with any such uncertain tax positions for the operations of any entity included in the consolidated results of operations. We classify interest and penalties related to uncertain tax positions, if any, in our consolidated financial statements as a component of general and administrative expense. Basic and Diluted Net Income (Loss) and Distributions per Common Share Basic earnings per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all stock options are used to repurchase common stock at our NAV value. See Note 12 for further information. Recently Adopted Accounting Pronouncements On January 1, 2019, the Company adopted the FASB Accounting Standards Update (“ASU”) 2016-02, Leases (“Topic 842”), using the modified retrospective approach and have elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, permits us to carry forward our prior conclusions for lease classification, the ability not to reassess whether any existing or expired contracts contain leases, lease classifications for existing or expired leases, and initial direct costs on existing leases. We also made an accounting policy election to keep short-term leases less than twelve months off the balance sheet for all classes of underlying assets. The new standard requires a lessor to classify leases as either sales-type, finance or operating leases. A lease will be treated as a sales-type lease if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor does not convey risks and rewards or control, an operating lease results. After evaluating our tenant leases, we have concluded that these are operating-type leases. Additionally, lessors were provided with the option to elect a practical expedient, which we elected, allowing them to not separate lease and nonlease components in a contract for the purpose of revenue recognition and disclosure. This practical expedient is limited to circumstances in which: (i) the timing and pattern of transfer are the same for the nonlease component and the related lease component and (ii) the lease component, if accounted for separately, would be classified as an operating lease. This practical expedient causes an entity to assess whether a contract is predominantly lease or service based and recognize the entire contract under the relevant accounting guidance (i.e., predominantly lease-based would be accounted for under ASU 2016-02 and predominantly service-based would be accounted for under the Revenue ASUs). The FASB also issued ASU 2018-20 “Leases (Topic 842) - Narrow Improvements for Lessors,” which provides lessors the ability to make an accounting policy election not to evaluate whether certain sales taxes and other similar taxes imposed by a governmental authority on a specific lease revenue producing transaction are the primary obligation of the lessor as owner of the underlying leased asset. A lessor that makes this election will exclude these taxes from the measurement of lease revenue and the associated expense. Upon adoption of ASC 842, we utilized this practical expedient in cases where real estate taxes were paid directly by our tenants to taxing authorities. For triple-net leasing arrangements in which the tenant remits payment for real estate taxes to us and we pay the taxing authority, we have included the associated revenue and expense in total rental revenues and property operating costs on the consolidated statements of operations. This reporting had no impact on our net income. Additionally, under Topic 842, we must assess if all payments due under the lease are likely to be collected. If tenant lease payments are not likely to be collected, then the revenues will be recognized on a cash basis (or if the answer changes at a later date, the revenues are adjusted to reflect what it would have been on a cash basis) and the adjustments will be recorded through rental revenues, rather than bad debt expense. We did not have any collectability issues related to our leases for the year ended December 31, 2019. As generally accepted accounting principles for lessors remains mostly unchanged, the adoption of Topic 842 did not have a material impact on the total amount of revenues recognized from our leases from our tenants, however, as of January 1, 2019, the presentation of our rental revenues and tenant reimbursements were combined into one line item on our consolidated statements of operations under lease revenue. All tenant leases prior to January 1, 2019 will be presented under ASC 840. During the years ended December 31, 2019 and 2018, the Company received $0.8 million and $1.1 million, respectively, from its tenants for reimbursement of property taxes and insurance. Lake Forest Lease We have entered into a lease agreement, as amended, for corporate office space located in Lake Forest, California, which expires in April 2022 (the “LF Lease”). On January 1, 2019, the Company adopted Topic 842 and recorded a right-of-use asset and lease liability equal to the present value of the remaining lease payments within the consolidated balance sheet. As a result, the Company recognized a right-of-use asset (“ROU”) of $0.3 million and a lease liability of $0.3 million on its consolidated balance sheet as of January 1, 2019. Comparative periods are presented in accordance with ASC Topic 840 and do not include any retrospective adjustments to comparative periods to reflect the adoption of Topic 842. The adoption of this standard did not have any impact on the Company’s consolidated statement of operations or the consolidated statement of cash flows. The LF Lease has fixed lease payments. We make separate payments to the lessor based on the lessor’s property and casualty insurance costs and the property taxes assessed on the property, as well as a portion of the common area maintenance associated with the property. We have elected the practical expedient not to separate lease and nonlease components for our corporate office lease. As of December 31, 2019, the Company had a ROU operating lease asset of $0.2 million recorded in other assets in our consolidated balance sheets and a lease liability of $0.2 million recorded in our consolidated balance sheets in accrued liabilities. The Company will recognize lease expense, calculated as the remaining cost of the lease allocated over the remaining lease term on a straight-line basis. Lease expense will be presented as part of continuing operations within general and administrative expenses in the consolidated statement of operations. For the year ended December 31, 2019, the Company recognized $100,000 in lease expense. For the year ended December 31, 2019, the Company paid $100,000 in rent relating to the LF Lease. As a payment arising from an operating lease, the $100,000 is classified within operating activities in the consolidated statements of cash flows. As of December 31, 2019, the remaining lease term for LF Lease is 28 months. Because we do not have access to the discount rate implicit in the lease, we have utilized our estimated incremental borrowing rate as the discount rate. The estimated discount rate associated with our corporate operating lease is 5%. Pursuant to ASC 842, lease payments on the LF Lease for each of the following years ending December 31 are as follows: Year Lease payments 2020 104,000 2021 108,000 2022 36,000 Total lease payments $ 248,000 Less effect of discounting (15,000) Total lease liability Pursuant to ASC 840, lease payments on the LF Lease as of December 31, 2018 were as follows: Year Lease payments 2019 100,000 2020 104,000 2021 108,000 2022 36,000 $ 348,000 For the year ended December 31, 2018, the Company recognized $100,000 in lease expense. Recently Issued Accounting Pronouncements In January 2020, the FASB issued ASU 2020-01 (“Update”) to clarify the interaction among the accounting standards for equity securities, equity method investments and certain derivatives. The new ASU clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, Investments—Equity Method and Joint Ventures, for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2018-19”), which amends ASU 2016-13 to clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20, and instead, impairment of such receivables should be accounted for in accordance with Topic 842, Leases. ASU 2016-13 and ASU 2018-19 are effective for fiscal years and interim periods within those years beginning after December 15, 2019, with early adoption permitted as of the fiscal years beginning after December 15, 2018. An entity will apply the amendments in these updates through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption of the new standard on January 1, 2020 did not have a material effect on the Company’s financial position, results of operations, or cash flows.

Investments in Real Estate Prop

Investments in Real Estate Properties	12 Months Ended
	Dec. 31, 2019
Investments in Real Estate Properties
Investments in Real Estate Properties	3. Investments in Real Estate Properties As of December 31, 2019 and 2018, investments in real estate properties including those held by our consolidated subsidiaries: 2019 2018 Land $ 6,237,000 $ 8,003,000 Buildings and improvements 48,295,000 69,284,000 Less: accumulated depreciation (8,444,000) (11,162,000) Buildings and improvements, net 39,851,000 58,122,000 Furniture and fixtures 4,230,000 6,829,000 Less: accumulated depreciation (3,805,000) (5,952,000) Furniture and fixtures, net 425,000 877,000 Real estate properties, net $ 46,513,000 $ 67,002,000 Depreciation expense (excluding leasing commission amortization) for the years ended December 31, 2019 and 2018 was approximately $1.7 million and $2.9 million, respectively. As of December 31, 2019, our portfolio consisted of seven real estate properties which were 100% leased to the tenants of the related facilities. The following table provides summary information regarding our portfolio (excluding the 50 properties owned by our unconsolidated Equity-Method Investments) as of December 31, 2019: Loans Payable, Excluding Debt Purchase Issuance Number of Property Location Date Purchased Type (1) Price Costs Beds Sheridan Care Center Sheridan, OR August 3, 2012 SNF $ 4,100,000 $ 4,485,000 51 Fernhill Care Center Portland, OR August 3, 2012 SNF 4,500,000 3,934,000 63 Friendship Haven Healthcare and Rehabilitation Center Galveston County, TX September 14, 2012 SNF 15,000,000 10,725,000 150 Pacific Health and Rehabilitation Center Tigard, OR December 24, 2012 SNF 8,140,000 6,559,000 73 Brookstone of Aledo Aledo, IL July 2, 2013 AL 8,625,000 6,983,000 66 Sundial Assisted Living Redding, CA December 18, 2013 AL 3,500,000 3,843,000 65 Pennington Gardens Chandler, AZ July 17, 2017 AL/MC 13,400,000 10,473,000 90 Total: $ 57,265,000 $ 47,002,000 558 (1) SNF is an abbreviation for skilled nursing facility. AL is an abbreviation for assisted living facility. MC is an abbreviation for memory care facility. Future Minimum Lease Payments The future minimum lease payments to be received under existing operating leases for our consolidated properties as of December 31, 2019 are as follows: Years ending December 31, 2020 5,400,000 2021 5,511,000 2022 5,626,000 2023 5,742,000 2024 5,441,000 Thereafter 28,890,000 $ 56,610,000 2019 Acquisitions None 2018 Acquisitions Land Purchase – Redding, CA On March 30, 2018, we purchased the land under the HP Redding facility, Sundial Assisted Living, for $685,000 plus approximately $30,000 in acquisition costs. Additionally, the existing lease agreement for the Sundial Assisted Living tenant was amended to increase the annual rental payment by $36,000.

Loans Payable

Loans Payable	12 Months Ended
	Dec. 31, 2019
Loans Payable
Loans Payable	4. Loans Payable As of December 31, 2019 and 2018, loans payable consisted of the following: December 31, 2019 December 31, 2018 Loan payable to CIBC Bank USA in monthly installments of approximately $75,000, including cash collateral and interest at LIBOR plus 3.75% (5.45% and 6.12% at December 31, 2019 and 2018, respectively), due in March 2021, and collateralized by Friendship Haven. $ 10,725,000 $ 10,725,000 Loan payable to Capital One Multifamily Finance, LLC (insured by HUD) in monthly installments of approximately $49,000, including interest at a fixed rate of 4.23%, due in September 2053, and collateralized by Pennington Gardens. $ 10,473,000 $ 10,610,000 Loan payable to Healthcare Financial Solutions, LLC (refinanced with HUD-insured loan in April 2019) was due in monthly installments of approximately $21,000, including cash collateral and interest at LIBOR (floor of 0.50%) plus 4.0% (6.4% at December 31, 2018, respectively), and was collateralized by Sundial Assisted Living. $ — $ 2,800,000 Loans payable to ORIX Real Estate Capital, LLC (formerly Lancaster Pollard) (insured by HUD) in monthly installments of approximately $139,000, including interest, ranging from a fixed rate of 3.70% to 4.2%, due in September 2039 through April 2054, and as of December 31, 2019, collateralized by Sheridan, Fernhill, Pacific Health, Aledo and Sundial Assisted Living. As of December 31, 2018, collateralized by Sheridan, Fernhill, Pacific Health, Shelby, Hamlet, Carteret, Aledo and Danby. $ 25,804,000 $ 41,977,000 47,002,000 66,112,000 Less debt issuance costs (1,425,000) (2,062,000) Total loans payable $ 45,577,000 $ 64,050,000 As of December 31, 2019, we have total debt obligations of approximately $47.0 million that will mature between 2021 and 2054. See Note 3 for loans payable balance for each property. All of the loans payable have certain financial and non-financial covenants, including ratios and financial statement considerations. As of December 31, 2019, we were in compliance with all of our debt covenants. In connection with our loans payable, we incurred debt issuance costs. As of December 31, 2019 and 2018, the unamortized balance of the debt issuance costs was approximately $1.4 million and $2.1 million, respectively. These debt issuance costs are being amortized over the life of their respective financing agreements using the straight-line basis which approximates the effective interest rate method. For the years ended December 31, 2019 and 2018, approximately $0.1 million and $0.3 million, respectively, of debt issuance costs were amortized and included in interest expense in our consolidated statements of operations. During the years ended December 31, 2019 and 2018, we incurred approximately $2.5 million and $3.3 million, respectively, of interest expense related (excluding debt issuance cost amortization) to our loans payable. The principal payments due on the loans payable (excluding debt issuance costs) for each of the five following years and thereafter ending December 31 are as follows: Principal Year Amount 2020 836,000 2021 11,594,000 2022 903,000 2023 939,000 2024 976,000 Thereafter 31,754,000 $ 47,002,000 The following information notes the loan activity for the years ended December 31, 2019 and 2018: CIBC Bank USA On March 30, 2018, CHP Friendswood SNF, LLC entered into a $10,725,000, three-year term loan and security agreement with CIBC Bank USA, which is collateralized by the Friendship Haven facility. We incurred approximately $0.2 million in debt issuance costs. The monthly payments, commencing in May 2018, consist of interest plus approximately $18,000 of cash loan guarantee payments, (increasing to $19,000 for year 2 and $20,000 for year 3), which will be held in a cash loan guarantee fund until maturity date. If the loan is refinanced prior to the maturity date, the loan payments in the cash loan guarantee fund will be released to us; otherwise at the maturity date, the loan payments in the cash loan guarantee fund will be released to the lender and applied to the outstanding principal balance. As of December 31, 2019 and 2018, the total amount in the cash loan guarantee fund was approximately $375,000 and $147,000, respectively, and is included in restricted cash in our consolidated balance sheet. The loan may be prepaid with no penalty if the property is refinanced through a United States Department of Housing and Urban Development (“HUD”)-insured loan; otherwise we will be required to pay a prepayment premium of 2% of the loan balance prior to the first anniversary and 1% thereafter through maturity. See table above listing loans payable for further information. Capital One We had a secured term loan agreement with Capital One, National Association collateralized by the Pennington Gardens facility that was terminated on September 27, 2018 as the loan was refinanced with Capital One Multifamily Finance, LLC and insured by HUD (“HUD Pennington Loan”). We expensed the unamortized balance of approximately $15,000 of debt issuance costs related to the original Capital One loan, which is included in interest expense in our consolidated statements of operations. The HUD Pennington Loan is collateralized by the Pennington Gardens facility. The loan bears interest at a fixed rate of 4.23%, plus 0.65% for mortgage insurance premiums, for the term of the loan. The loan matures in September 2053 and amortizes over 35 years. We incurred approximately $0.3 million in debt issuance costs. The note contains a prepayment penalty of 10% in year 1, which reduces each year by 100 basis points, until there is no longer a prepayment penalty beginning in year 11. See table above listing loans payable for further information. Healthcare Financial Solutions, LLC (a.k.a. Capital One) We had an amended loan agreement for the Sundial Assisted Living property located in Redding, California, with Healthcare Financial Solutions, LLC (“HFS”) that was terminated on April 24, 2019 as the loan was refinanced with a HUD-insured loan (“HUD Redding Loan”) through ORIX Real Estate Capital, LLC ) (“ORIX”) (formerly Lancaster Pollard Mortgage Company). See below under ORIX for further information regarding the HUD Redding Loan. See table above listing loans payable for further information as of December 31, 2018. ORIX Real Estate Capital, LLC (formerly Lancaster Pollard Mortgage Company) We have several properties with HUD-insured loans from ORIX. See table above listing loans payable for further information. As noted above, in April 2019, we entered into the HUD Redding Loan, which is collateralized by the Sundial Assisted Living facility. The loan bears interest at a fixed rate of 4.2%, plus 0.65% for mortgage insurance premiums, for the term of the loan. The loan matures in April 2054 and amortizes over 35 years. We incurred approximately $210,000 in debt issuance costs. The note contains a prepayment penalty of 10% in year 1, which reduces each year by 100 basis points, until there is no longer a prepayment penalty beginning in year 11. All of the HUD-insured loans are subject to customary representations, warranties and ongoing covenants and agreements with respect to the operation of the facilities, including the provision for certain maintenance and other reserve accounts for property tax, insurance, and capital expenditures, with respect to the facilities all as described in the HUD agreements. These reserves are included in restricted cash in our consolidated balance sheets.

Equity-Method Investments

Equity-Method Investments	12 Months Ended
	Dec. 31, 2019
Equity-Method Investments
Equity-Method Investments	5. Equity-Method Investments As of December 31, 2019 and 2018, the balances of our Equity-Method Investments were approximately $13.1 million and $9.7 million, respectively, and are as follows: Summit Union Life Holdings, LLC The SUL JV will exist until an event of dissolution occurs, as defined in the limited liability company agreement of the SUL JV (the “SUL LLC Agreement”). Under the SUL LLC Agreement, net operating cash flow of the SUL JV will be distributed monthly, first to the Operating Partnership and Best Years pari passu up to a 9% to 10% annual return, as defined, and thereafter to Best Years 75% and the Operating Partnership 25%. All capital proceeds from the sale of the properties held by the SUL JV, a refinancing or another capital event will be paid first to the Operating Partnership and Best Years pari passu until each has received an amount equal to its accrued but unpaid 9% to 10% return plus its total contribution, and thereafter to Best Years 75% and the Operating Partnership 25%. In April 2015, the Operating Partnership recorded a receivable for approximately $362,000 for distributions that could not be paid prior to the contribution of the original six properties contributed in April 2015 (“JV 2 Properties”) due to cash restrictions related to the loans payable for the contributed JV 2 Properties. In 2017, we received approximately $178,000 to pay down the distribution receivable from two of the JV 2 properties. As of December 31, 2019 and 2018, the receivable of $184,000, due from the JV 2 properties is included in tenant and other receivables on our consolidated balance sheets. As of December 31, 2019 and 2018, we had a receivable balance of $0 and $105,000, respectively, included in tenant and other receivables in our consolidated balance sheets from one of the SUL JV properties related to cash retained by the property to be used for additional capital. In April 2019, approximately $54,000 was converted to capital and the remaining balance was refunded to us in cash. As of December 31, 2019 and 2018, the balance of our equity-method investment related to the SUL JV was approximately $3.1 million and $3.3 million, respectively. Summit Fantasia Holdings, LLC The Fantasia JV will exist until an event of dissolution occurs, as defined in the limited liability company agreement of the Fantasia JV (the “Fantasia LLC Agreement”). In April 2018, we made an additional capital contribution of $1.25 million to the Fantasia JV. As a result of this capital contribution, as of April 27, 2018, the Operating Partnership has a 35% equity investment and each member will receive a distribution of net operating cash flow and capital proceeds of 50% (instead of 70% for Fantasia and 30% for the Operating Partnership) after the Operating Partnership and Fantasia receive their accrued, but unpaid, returns. Under the Fantasia LLC Agreement, as amended in April 2018, net operating cash flow of the Fantasia JV will be distributed quarterly, first to the Operating Partnership and Fantasia pari passu until each member has received an amount equal to its accrued, but unpaid 8% return, and thereafter 50% to Fantasia and 50% to the Operating Partnership. All capital proceeds from the sale of the properties held by the Fantasia JV, a refinancing or another capital event, will be paid first to the Operating Partnership and Fantasia pari passu until each has received an amount equal to its accrued but unpaid 8% return plus its total capital contribution, and thereafter 50% to Fantasia and 50% to the Operating Partnership. As of December 31, 2019 and 2018, the balance of our equity-method investment related to the Fantasia JV was approximately $2.1 million and $2.2 million, respectively. Summit Fantasia Holdings II, LLC The Fantasia II JV will exist until an event of dissolution occurs, as defined in the limited liability company agreement of the Fantasia II JV (the “Fantasia II LLC Agreement”). Under the Fantasia II LLC Agreement, net operating cash flow of the Fantasia JV will be distributed quarterly, first to the Operating Partnership and Fantasia pari passu until each member has received an amount equal to its accrued, but unpaid 8% return, and thereafter 70% to Fantasia and 30% to the Operating Partnership. All capital proceeds from the sale of the properties held by the Fantasia II JV, a refinancing or another capital event, will be paid first to the Operating Partnership and Fantasia pari passu until each has received an amount equal to its accrued but unpaid 8% return plus its total capital contribution, and thereafter 70% to Fantasia and 30% to the Operating Partnership. As of December 31, 2019 and 2018, the balance of our equity-method investment related to the Fantasia II JV was approximately $1.5 million and $1.6 million, respectively. Summit Fantasia Holdings III, LLC The Fantasia III JV will continue until an event of dissolution occurs, as defined in the limited liability company agreement of the Fantasia III JV (the “Fantasia III LLC Agreement”). Under the Fantasia III LLC Agreement, net operating cash flow of the Fantasia III JV will be distributed quarterly, first to the Operating Partnership and Fantasia pari passu until each member has received an amount equal to its accrued, but unpaid 9% return, and thereafter 75% to Fantasia and 25% to the Operating Partnership. All capital proceeds from the sale of the properties held by the Fantasia III JV, a refinancing or another capital event, will be paid first to the Operating Partnership and Fantasia pari passu until each has received an amount equal to its accrued but unpaid 9% return plus its total capital contribution, and thereafter 75% to Fantasia and 25% to the Operating Partnership. As of December 31, 2019 and 2018, the balance of our equity-method investment related to the Fantasia III JV was approximately $1.6 million and $1.7 million, respectively. Summit Fantasy Pearl Holdings, LLC The FPH JV will continue until an event of dissolution occurs, as defined in the limited liability company agreement of the FPH JV (the “FPH LLC Agreement”). Under the FPH LLC Agreement, net operating cash flow of the FPH JV will be distributed quarterly, first to the members pari passu until each member has received an amount equal to its accrued, but unpaid 9% return, and thereafter 65.25% to Fantasy, 7.5% to Atlantis, 7.25% to Fantasia and 20% to the Operating Partnership. All capital proceeds from the sale of the properties held by the FPH JV, a refinancing or another capital event, will be paid to the members pari passu until each has received an amount equal to its accrued but unpaid 9% return plus its total capital contribution, and thereafter 65.25% to Fantasy, 7.5% to Atlantis, 7.25% to Fantasia, and 20% to the Operating Partnership. As of December 31, 2019 and 2018, the balance of our equity-method investment related to the FPH JV was approximately $0.5 million and $0.9 million, respectively. Indiana JV On February 28, 2019 we formed a new joint venture (“Indiana JV”), and on March 13, 2019, we entered into a Limited Liability Company Agreement (“Indiana JV Agreement”) through our wholly-owned subsidiary, Summit Indiana, LLC, with two unrelated parties: a real estate holding company and a global institutional asset management firm, both Delaware limited liability companies. We have a 15% membership interest in the Indiana JV. On March 13, 2019, through the Indiana JV, we acquired a 15% interest in 14 skilled nursing facilities, located in Indiana. Indiana JV paid a total aggregate purchase price of approximately $128.7 million for the properties, which was funded through capital contributions from the members of the Indiana JV plus the proceeds from a collateralized loan. The facilities will be operated by and leased to an affiliate of the real estate holding company. The Indiana JV will continue until an event of dissolution occurs, as defined in the Indiana JV Agreement. Under the Indiana JV Agreement, net operating cash flow of the Indiana JV will be distributed monthly to the members pari passu in accordance with their respective capital percentages, and thereafter as defined in the Indiana JV Agreement. As of December 31, 2019, the balance of our equity-method investment related to the Indiana JV was approximately $4.3 million. Summarized Financial Data for Equity-Method Investments Our Equity-Method Investments are significant equity-method investments in the aggregate. The results of operations of our Equity-Method Investments for the year ending December 31, 2019 are summarized below: Fantasia Fantasia Fantasia FPH Combined SUL JV JV II JV III JV JV Indiana JV Total Revenue $ 18,295,000 $ 3,271,000 $ 3,536,000 $ 7,914,000 $ 3,564,000 $ 9,464,000 $ 46,044,000 Net Operating Income $ 13,972,000 $ 1,488,000 $ 2,859,000 $ 5,908,000 $ 3,052,000 $ 9,451,000 $ 36,730,000 Income from Operations $ 7,851,000 $ 824,000 $ 1,912,000 $ 4,135,000 $ 1,677,000 $ 6,042,000 $ 22,441,000 Net Income $ 1,284,000 $ (315,000) $ 923,000 $ 1,302,000 $ (723,000) $ (516,000) $ 1,955,000 Summit interest in Equity-Method Investments net income $ 128,000 $ (110,000) $ 185,000 $ 130,000 $ (72,000) $ (77,000) $ 184,000 The results of operations of our Equity-Method Investments for the year ending December 31, 2018 are summarized below: Fantasia Fantasia Fantasia FPH Combined SUL JV JV II JV III JV JV Total Revenue $ 16,676,000 $ 2,043,000 $ 3,509,000 $ 7,812,000 $ 3,559,000 $ 33,599,000 Net Operating Income $ 14,226,000 $ 1,769,000 $ 2,844,000 $ 5,911,000 $ 3,052,000 $ 27,802,000 Income from Operations $ 8,110,000 $ 1,009,000 $ 1,922,000 $ 4,135,000 $ 1,707,000 $ 16,883,000 Net Income $ 1,832,000 $ 34,000 $ 459,000 $ 1,358,000 $ 305,000 $ 3,988,000 Summit interest in Equity-Method Investments net income $ 183,000 $ 14,000 $ 92,000 $ 136,000 $ 30,000 $ 455,000 Distributions from Equity-Method Investments As of December 31, 2019 and 2018, we have distributions receivable, which is included in tenant and other receivables in our consolidated balance sheets, as follows: December 31, December 31, 2019 2018 SUL JV $ 97,000 $ 168,000 Fantasia JV 180,000 156,000 Fantasia II JV 48,000 52,000 Fantasia III JV 117,000 90,000 FPH JV 39,000 13,000 Indiana JV 162,000 — Total $ 643,000 $ 479,000 For the years ended December 31, 2019 and 2018, we received cash distributions, which are included in our cash flows from operating activities in the change in tenant and other receivables, and cash flows from investing activities, using the cumulative earnings approach, as follows: Year Ended December 31, 2019 Year Ended December 31, 2018 Total Cash Cash Flow Cash Flow Total Cash Cash Flow Cash Flow Distributions from from Distributions from from Received Operating Investing Received Operating Investing SUL JV $ 548,000 $ 128,000 $ 420,000 $ 494,000 $ 183,000 $ 311,000 Fantasia JV — — — 45,000 14,000 31,000 Fantasia II JV 276,000 185,000 91,000 259,000 92,000 167,000 Fantasia III JV 160,000 130,000 30,000 300,000 136,000 164,000 FPH JV 306,000 — 306,000 85,000 30,000 55,000 Indiana JV 377,000 — 377,000 — — — Total $ 1,667,000 $ 443,000 $ 1,224,000 $ 1,183,000 $ 455,000 $ 728,000 Acquisition and Asset Management Fees We serve as the manager of our Equity-Method Investments and provide management services in exchange for fees and reimbursements. As the manager, we are paid an acquisition fee, as defined in the agreements. Additionally, we are paid an annual asset management fee for managing the properties held by our Equity-Method Investments, as defined in the agreements. For the years ended December 31, 2019 and 2018, we recorded approximately $1.2 million and $0.7 million, respectively, in acquisition and asset management fees from our Equity-Method Investments.

Receivables

Receivables	12 Months Ended
	Dec. 31, 2019
Receivables
Receivables	6. Receivables Notes Receivable Friendswood TRS Note The Operating Partnership entered into an amended and restated promissory note dated January 1, 2018, with Friendswood TRS for approximately $1.1 million. The note does not bear interest and is due in 48 equal payments of approximately $22,000. We recorded a discount of approximately $95,000 on the note using an imputed interest rate of 4.25%. As of December 31, 2019 and 2018, the balance on the note was approximately $0.5 million and $0.7 million, respectively. Tenant and Other Receivables, net Tenant and other receivables, net consists of: December 31, December 31, 2019 2018 Straight-line rent receivables $ 2,546,000 $ 3,675,000 Distribution receivables from Equity-Method Investments 643,000 479,000 Receivable from JV 2 properties 184,000 184,000 Asset management fees 430,000 214,000 Other receivables 9,000 114,000 Total $ 3,812,000 $ 4,666,000

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2019
Related Party Transactions
Related Party Transactions	7. Related Party Transactions CRA Prior to the termination of our advisory agreement on April 1, 2014 with CRA (our former advisor, a related party), we incurred costs related to fees paid and costs reimbursed for services rendered to us by CRA through March 31, 2014. Some of the fees we had paid to CRA were considered to be in excess of allowed amounts and, therefore, CRA was required to reimburse us for the amount of the excess costs we paid to them. As of December 31, 2019 and 2018, the receivables from CRA are fully reserved due to the uncertainty of collectability and are included in tenant and other receivables in our consolidated balance sheets (see Note 9). As of December 31, 2019 and 2018, we had the following receivables and reserves: Receivables Reserves Balance Organizational and offering costs $ 738,000 $ (738,000) $ — Asset management fees and expenses 32,000 (32,000) — Operating expenses (direct and indirect) 189,000 (189,000) — Operating expenses (2%/25% Test) 1,717,000 (1,717,000) — Total $ 2,676,000 $ (2,676,000) $ — Equity-Method Investments See Note 5 for further discussion of distributions and acquisition and asset management fees related to our Equity-Method Investments.

Concentration of Risk

Concentration of Risk	12 Months Ended
	Dec. 31, 2019
Concentration of Risk
Concentration of Risk	8. Concentration of Risk As of December 31, 2019, we owned one property in California, three properties in Oregon, one property in Texas, one property in Illinois, and one property in Arizona (excluding the 50 properties held by our Equity-Method Investments). Accordingly, there is a geographic concentration of risk subject to economic conditions in certain states. Additionally, as of December 31, 2019, we leased our seven real estate properties to five different tenants under long-term triple net leases. For the year ended December 31, 2019, four of the five tenants each had rental revenue greater than 10% (32%, 22%, 18% and 14%). As of December 31, 2019, we have one tenant that constitutes a significant asset concentration, as the net assets of the tenant are approximately 20% of our total assets. As of December 31, 2018, we leased our 11 real estate properties to five different tenants under long-term triple net leases. For the year ended December 31, 2018, four of the five tenants each had rental revenue greater than 10% (41%, 23%, 17% and 13%). As of December 31, 2018, we had one tenant that constituted a significant asset concentration, however, four of the properties that made up that concentration were sold in February 2019 (see Note 11) and as such, this tenant no longer constitutes a significant asset concentration.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies We inspect our properties under a Phase I assessment for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist, we are not currently aware of any environmental liability with respect to the properties that would have a material effect on our consolidated financial condition, results of operations and cash flows. Further, we are not aware of any environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency. Our commitments and contingencies include the usual obligations of real estate owners and licensed operators in the normal course of business. In the opinion of management, these matters are not expected to have a material impact on our consolidated financial condition, results of operations and cash flows. We are also subject to contingent losses resulting from litigation against the Company. On April 1, 2014, CRA and Cornerstone Ventures, Inc. filed a complaint in the Superior Court of California for the County of Orange-Central Justice Center, Case No. 30-2014-00714004-CU-BT-CJC, naming the Company, its former directors, one of its officers and one of its former officers as defendants, seeking declaratory and injunctive relief and compensatory and punitive damages. On September 17, 2014, we filed a First Amended Cross-Complaint seeking compensatory damages and an accounting pursuant to Sections 10(c)(i) and 17(c)(ii) of the Advisory Agreement and including any monies Plaintiffs and Terry Roussel directly or indirectly received from or paid to the Company. On February 22, 2018, the action was assigned to a different trial judge. On May 29, 2018, the Company filed a motion for terminating and monetary sanctions against CRA, Cornerstone Ventures, Inc. and their counsel, Winget Spadafora & Schwartzberg. On November 30, 2018, the new trial judge vacated the trial date, pending resolution of the Company’s motion for terminating and monetary sanctions against CRA and Cornerstone Ventures, Inc. and denied the Company’s motion for sanctions against Winget Spadafora & Schwartzberg. On February 13, 2019, the trial judge held another hearing on the Company’s motion for terminating and monetary sanctions and indicated that it intended to grant the Company’s motion for terminating sanctions and award the Company monetary sanctions. On March 14, 2019, the Court entered an Order and Judgment granting the Company’s motion for terminating sanctions, awarding the Company monetary sanctions in the amount of $588,672, and dismissing CRA and Cornerstone Ventures Inc.’s Complaint with prejudice. On May 21, 2019, CRA and Cornerstone Ventures, Inc. filed a notice of appeal from the Judgment and, on June 3, 2019, the Company filed a notice of cross-appeal from the Judgment. On July 9, 2019, the California Court of Appeal, Fourth District dismissed CRA and Cornerstone Ventures, Inc.’s appeal with prejudice. The Company’s appeals against CRA, Cornerstone Ventures, Inc and Winget Spadafora & Schwartzberg are currently pending before the Court of Appeal, Fourth District. In September 2015, a bankruptcy petition was filed against Healthcare Real Estate Partners, LLC (“HCRE”) by the investors in Healthcare Real Estate Fund, LLC and Healthcare Real Estate Qualified Purchasers Fund, LLC (collectively, the “Funds”). HCRE did not timely respond to the involuntary petition and the Bankruptcy Court entered an Order of Relief making HCRE a debtor in bankruptcy. As a result, HCRE was removed as manager under the Funds’ operating agreement. Thereafter the Company became the manager of the Funds and purchased the investors’ interests in the Funds for approximately $0.9 million. Following the subsequent dismissal of the involuntary bankruptcy petition filed against it, HCRE filed a motion for attorneys’ fees and damages and a separate complaint for violation of the automatic stay against the petitioning creditors and the Company in the United States Bankruptcy Court of the District of Delaware. The Bankruptcy Court granted a motion to dismiss the complaint for violation of the automatic stay filed jointly by the petitioning creditors and us, and dismissed the complaint with prejudice. HCRE appealed the Bankruptcy Court’s decision to the United States District Court for the District of Delaware which affirmed the Bankruptcy Court’s dismissal of the complaint in a decision dated September 9, 2018. On October 11, 2018, HCRE appealed the District Court’s decision affirming the Bankruptcy Court’s dismissal of the complaint to the United States Court of Appeals for the Third Circuit. On October 22, 2019, the Third Circuit granted HCRE’s appeal, reversing the District Court and holding that HCRE could assert the adversary complaint seeking damages for violation of the automatic stay. The Company filed a Petition for Rehearing on November 5, 2019 asserting that HCRE is not entitled to assert a claim for damages for violation of the automatic stay. This Petition was denied and the mandate was issued sending the matter back to the Bankruptcy Court. The Bankruptcy Court has not taken any action on the matter since the Third Circuit remanded the case. We believe that all of HCRE’s remaining alleged claims are without merit and will vigorously defend ourselves. Delbert Freeman and his company, Freescan Ventures, Inc. (collectively, “Freeman”), filed an action against us and Mr. Eikanas, our Chief Executive Officer, on December 21, 2017 for breach of contract arising out of the sale of the Athens project in Georgia. We originally guaranteed a lease for the development of the Athens project, which was ultimately sold to a third party in June of 2016, thereby releasing us from our obligation. Freeman sued for breach of contract based on an allegation that he was not paid profits he was promised from the proceeds of the project. Freeman also alleged that he was promised consulting fees of $270,000 from us arising out of an alleged oral agreement to pay consulting fees of $10,000 per month. On May 8, 2019, Freeman agreed to voluntarily dismiss all claims in their complaint, with prejudice. In return, the Company agreed to dismiss its claims with prejudice as well. Accordingly, the Court has dismissed this action in its entirety, with prejudice. Indemnification and Employment Agreements We have entered into indemnification agreements with certain of our executive officers and directors which indemnify them against all judgments, penalties, fines and amounts paid in settlement and all expenses actually and reasonably incurred by him or her in connection with any proceeding. Additionally, effective October 1, 2018, we amended our employment agreements with our executive officers to extend the term of each agreement for an additional three years. These employment agreements include customary terms relating to salary, bonus, position, duties and benefits (including eligibility for equity compensation), as well as a cash payment following a change in control of the Company, as defined in such agreements. Management of our Equity-Method Investments As the manager of our Equity-Method Investments, we are responsible for managing the day-to-day operations and are, thus, subject to contingencies that may arise in the normal course of their operations. Additionally, we could be subject to a capital call from our Equity-Method Investments.

Equity

Equity	12 Months Ended
	Dec. 31, 2019
Equity
Equity	10. Equity Common Stock Our articles of incorporation authorize 290,000,000 shares of common stock with a par value of $0.001 and 10,000,000 shares of preferred stock with a par value of $0.001. Distributions The Company declared a cash distribution per common share in November 2018, which was paid on January 31, 2019 to shareholders of record as of January 15, 2019. The $1.5 million distribution was recorded as a distribution payable as of December 31, 2018 which is included in accounts payable and accrued liabilities in our consolidated balance sheets. The Company declared no cash distributions per common share during the year ended December 31, 2019. Our distribution reinvestment plan was suspended indefinitely effective December 31, 2010. At this time, we cannot provide any assurance as to if or when we will resume our distribution reinvestment plan. Share-Based Compensation Plans Upon the grant of stock options, we determine the exercise price by using our estimated per-share value, which is calculated by aggregating the estimated fair value of our investments in real estate and the estimated fair value of our other assets, subtracting the book value of our liabilities, utilizing a discount for the fact that the shares are not currently traded on a national securities exchange and a lack of a control premium, and divided the total by the number of our common shares outstanding at the time the options were granted. The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model. Assumptions required by the model include the risk-free interest rate, the expected life of the options, the expected stock price volatility over the expected life of the options, and the expected distribution yield. Compensation expense for employee stock options is recognized ratably over the vesting term. The expected life of the options was based on the simplified method as we do not have sufficient historical exercise data. The risk-free interest rate was based on the U.S. Treasury yield curve at the date of grant using the expected life of the options at the date of grant. Volatility was based on historical volatility of the stock prices for a sample of publicly traded companies with risk profiles similar to ours. The valuation model applied in this calculation utilizes highly subjective assumptions that could potentially change over time, including the expected stock price volatility and the expected life of an option. Summit Healthcare REIT, Inc. 2015 Omnibus Incentive Plan On October 28, 2015, we adopted the Summit Healthcare REIT, Inc. 2015 Omnibus Incentive Plan (“Incentive Plan”). The purpose of the Incentive Plan is to provide a means through which to attract and retain key personnel and to provide a means whereby current or prospective directors, officers, employees, consultants and advisors can acquire and maintain an equity interest in us, or be paid incentive compensation, including incentive compensation measured by reference to the value of our common stock, thereby strengthening their commitment to our welfare and aligning their interests with those of our stockholders. We may grant non-qualified stock options and incentive stock options, stock appreciation rights, restricted stock and restricted stock units, and performance based compensation awards. Stock options granted under the Incentive Plan are required to have a per share exercise price that is not less than 100% of the fair market value of our common stock underlying such stock options on the date an option is granted (other than in the case of options that are substitute awards). All stock options that are intended to qualify as incentive stock options must be granted pursuant to an award agreement expressly stating that the option is intended to qualify as an incentive stock option, and will be subject to the terms and conditions that comply with the rules as may be prescribed by Section 422 of the Code. The maximum term for stock options granted under the Incentive Plan will be ten years from the initial date of grant. The Incentive Plan provides that the total number of shares of common stock that may be issued is 3,000,000, of which 1,173,092 is available for future issuances as of December 31, 2019. On January 1, 2019, the Compensation Committee of the Board of Directors approved the issuance of 45,000 stock options under our Summit Healthcare REIT, Inc. 2015 Omnibus Incentive Plan (“Incentive Plan”) to our non-executive employees. The stock options vest monthly beginning on February 1, 2019 and continuing over a three-year period through January 1, 2022. The options expire 10 years from the grant date. The weighted-average fair value per share of the stock options granted was $0.61. On March 20, 2019, the Compensation Committee of the Board of Directors approved the issuance of 450,000 stock options under our Incentive Plan, 225,000 to each of our executives. The stock options were granted under the Incentive Plan, with 33% vesting on the grant date and the remaining 67% vesting in equal monthly installments beginning April 1, 2019 and continuing over a two-year period through March 1, 2021. The options expire 10 years from the grant date. The weighted-average fair value per share of the stock options granted was $0.57. On March 20, 2019, the Compensation Committee of the Board of Directors approved the issuance of 110,000 stock options under our Incentive Plan to our directors. The stock options vest monthly beginning on April 1, 2019 and continuing over a three-year period through March 1, 2022. The options expire 10 years from the grant date. The weighted-average fair value per share of the stock options granted was $0.60. The estimated fair value using the Black-Scholes option-pricing model with the following weighted average assumptions: 2019 Stock options granted 605,000 Expected volatility 21.75 % Expected term years Risk-free interest rate 2.38 % Dividend yield 0 % Fair value per share $ 0.58 The following table summarizes our stock options as of December 31, 2019: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Options outstanding at January 1, 2019 1,230,908 $ 1.99 — — Granted 605,000 2.26 — — Exercised — — — — Cancelled/forfeited (9,000) 2.17 — — Options outstanding at December 31, 2019 1,826,908 $ 2.09 7.76 $ 1,349,000 Options exercisable at December 31, 2019 1,444,624 $ 2.04 7.44 $ 1,133,000 For our outstanding non-vested options as of December 31, 2019, the weighted average grant date fair value per share was $0.54. As of December 31, 2019, we have unrecognized stock-based compensation expense related to unvested stock options which is expected to be recognized as follows: Years Ending December 31, 2020 144,000 2021 58,000 2022 6,000 $ 208,000 The stock-based compensation expense reported for the years ended December 31, 2019 and 2018 was approximately $234,000 and $100,000, respectively, and is included in general and administrative expense in the consolidated statements of operations.

Dispositions

Dispositions	12 Months Ended
	Dec. 31, 2019
Dispositions
Dispositions	11. Dispositions In accordance with ASC 360, Property, Plant & Equipment , we report results of operations from real estate assets that meet the definition of a component of an entity that have been sold, or meet the criteria to be classified as held for sale, as discontinued operations. Sale of Four North Carolina Properties On February 14, 2019, our wholly-owned subsidiaries HP Shelby, LLC, HP Hamlet, LLC, HP Carteret, LLC, and our 95%-owned subsidiary, HP Winston-Salem, LLC, pursuant to a Purchase and Sale Agreement (the “Agreement”) with Agemark Acquisition, LLC (the “Purchaser”), sold to the Purchaser (the “Sale”) the following four properties located in North Carolina (“NC Properties”): The Shelby House, an assisted living facility located in Shelby, North Carolina; The Hamlet House, an assisted living facility located in Hamlet, North Carolina, The Carteret House, an assisted living facility located in Newport, North Carolina and Danby House, an assisted living and memory care facility located in Winston-Salem, North Carolina. The total consideration received by the Company and its subsidiaries pursuant to the Agreement was $27.0 million in cash. The Company incurred approximately $1.2 million is transaction costs, mainly for the prepayment penalty related to the HUD-insured loans (the “HUD Loans”). On the date of the Sale, the total assets of the NC Properties were approximately $22.1 million, and liabilities were approximately $19.5 million, including approximately $19.4 million of outstanding principal to the HUD Loans. The HUD Loans were paid off in full using the proceeds of the Sale. As a result of the Sale, as of February 15, 2019, the NC Properties are no longer included in our consolidated financial statements. For the year ended December 31, 2019, we recorded a gain of approximately $4.3 million on the sale of the NC Properties. TRS Disposition Friendswood TRS (“Friendswood TRS”) was our wholly-owned TRS, and is the licensed operator and tenant of Friendship Haven Healthcare and Rehabilitation Center (“Friendship Haven”). Effective as of January 1, 2018, we assigned our interest in Friendswood TRS to HMG Park Manor of Friendswood, LLC (“HMG”), the management company of Friendship Haven. Therefore, as of January 1, 2018, Friendswood TRS is no longer consolidated in our consolidated financial statements. In January 2018, we recorded a gain of $109,000 on the disposition of Friendswood TRS, which is recorded in discontinued operations in the consolidated statements of operations.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2019
Earnings Per Share
Earnings Per Share	12. Earnings Per Share The following table presents the calculation of basic and diluted earnings per share (“EPS”) for the Company’s common stock for the years ended December 31, 2019 and 2018, and reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS: 2019 2018 Numerator: Income (loss) from continuing operations $ 3,030,000 $ (975,000) Income (loss) from continuing operations attributable to noncontrolling interest 83,000 (50,000) Income (loss) applicable to common stockholders, before discontinued operations 3,113,000 (1,025,000) Income from discontinued operations — 109,000 Net income (loss) applicable to common stockholders $ 3,113,000 $ (916,000) Denominator: Basic: Denominator for basic EPS - weighted average shares 23,027,978 23,027,978 Effect of dilutive shares: Stock options 478,500 — Denominator for diluted EPS – adjusted weighted average shares 23,506,478 23,027,978 Basic EPS $ 0.14 $ (0.04) Diluted EPS $ 0.13 $ (0.04) Basic and diluted EPS for income from discontinued operations was $0.00 for the years ended December 31, 2019 and 2018.

Segment Reporting

Segment Reporting	12 Months Ended
	Dec. 31, 2019
Segment Reporting
Segment Reporting	13. Segment Reporting ASC 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. As of December 31, 2019 and 2018, we operate in one reportable segment: healthcare real estate and although our portfolio is located throughout the United States, we do not distinguish or group our operations on a geographical basis for purposes of allocating resources or measuring performance. We are managed as one segment, rather than multiple segments for internal purposes and for internal decision making.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events
Subsequent Event	14. Subsequent Events Issuance of Stock Options On January 1, 2020, the Compensation Committee of the Board of Directors approved the issuance of 45,000 stock options to our employees. The stock options will be granted under the Incentive Plan (see Note 10), will vest monthly over three years and expire 10 years from the grant date. Novel Coronavirus (COVID-19) Update The outbreak of the novel coronavirus (or COVID-19) continues to grow both in the U.S. and globally. It is impossible to predict the effect and ultimate impact of the COVID-19 pandemic on our operations and results as the situation is rapidly evolving. Our rental revenue and operating results depend significantly on the demand for senior housing and skilled nursing and our tenants ability to pay us rent. While we have not seen a direct impact on the demand for senior housing and skilled nursing resulting from the COVID-19 outbreak as of the date of this report, the rapid development and fluidity of this situation precludes any prediction as to the ultimate material adverse impact on the demand for senior housing and skilled nursing and presents material uncertainty and risk with respect to our business, operations, financial condition and liquidity.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, the Operating Partnership (of which the Company owns 99.88%) and CHP, LLC (of which the Company owns 95%). All intercompany accounts and transactions have been eliminated in consolidation. The Financial Accounting Standards Board (“FASB”) issued Accounting Standard Codification (“ASC”) 810, Consolidation , which addresses how a business enterprise should evaluate whether it has a controlling interest in an entity through means other than voting rights and accordingly should consolidate the entity. Before concluding that it is appropriate to apply the voting interest consolidation model to an entity, an enterprise must first determine that the entity is not a variable interest entity. We evaluate, as appropriate, our interests, if any, in joint ventures and other arrangements to determine if consolidation is appropriate.
Use of Estimates	Use of Estimates The preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We base these estimates on various assumptions that we believe to be reasonable under the circumstances, and these estimates form the basis for our judgments concerning the carrying values of assets and liabilities that are not readily apparent from other sources. We periodically evaluate these estimates and judgments based on available information and experience. Actual results could differ from our estimates under different assumptions and conditions. If actual results significantly differ from our estimates, our financial condition and results of operations could be materially impacted.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all short-term, highly liquid investments that are readily convertible to cash with a maturity of three months or less at the time of purchase to be cash equivalents. As of December 31, 2019, we had cash accounts in excess of FDIC-insured limits. We do not believe we are exposed to any significant credit risk on cash and cash equivalents.
Restricted Cash	Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown on the consolidated statements of cash flows: December 31, December 31, 2019 2018 Cash and cash equivalents $ 13,260,000 $ 11,463,000 Restricted cash 2,817,000 3,493,000 Total cash, cash equivalents, and restricted cash shown on the consolidated statements of cash flows $ 16,077,000 $ 14,956,000
Investments in Real Estate and Depreciation	Investments in Real Estate and Depreciation We allocate the purchase price of our properties in accordance with ASC 805 – Business Combinations . If the acquisition does not meet the definition of a business, we record the acquisition as an asset acquisition. For transactions that are business combinations, acquisition costs are expensed as incurred. For transactions that are an asset acquisition, acquisition costs are capitalized as incurred. Upon an asset acquisition of a property, we allocate the purchase price of the property based upon the relative fair value of the tangible and intangible assets acquired and liabilities assumed, which generally consists of land, buildings, site improvements, and furniture and fixtures. We allocate the purchase price to tangible assets of an acquired property by valuing the property as if it were vacant. We are required to make subjective assessments as to the estimated useful lives of our depreciable assets. We consider the period of future benefit of the assets to determine the appropriate estimated useful lives. Depreciation of our assets is being charged to expense on a straight-line basis over the estimated useful lives. We depreciate the fair value allocated to building and improvements over estimated useful lives ranging from 15 to 39 years. We estimate the value of furniture and fixtures based on the assets’ depreciated replacement cost. We depreciate the fair value allocated to furniture and fixtures over estimated useful lives ranging from three to six years. Assets held for sale are not depreciated.
Impairment of Real Estate Assets	Impairment of Real Estate Assets We evaluate the recoverability of the carrying value of our real estate properties on a property-by-property basis. We review our properties for recoverability when events or circumstances, including significant physical changes in the property, significant adverse changes in general economic conditions and significant deteriorations of the underlying cash flows of the property, indicate that the carrying amount of the property may not be fully recoverable. The need to recognize an impairment charge is based on estimated undiscounted future cash flows from a property compared to the carrying value of that property. If recognition of an impairment charge is necessary, it is measured as the amount by which the carrying amount of the property exceeds the fair value of the property. We recorded no impairment charges in 2019 and 2018.
Fair Value Measurement	Fair Value Measurements Fair value represents the estimate of the proceeds to be received, or paid in the case of a liability, in a current transaction between willing parties. ASC 820, Fair Value Measurement, establishes a fair value hierarchy to categorize the inputs used in valuation techniques to measure fair value. Inputs are either observable or unobservable in the marketplace. Observable inputs are based on market data from independent sources and unobservable inputs reflect the reporting entity’s assumptions about market participant assumptions used to value an asset or liability. Financial assets and liabilities are categorized based on the inputs to the valuation techniques as follows: Level 1. Quoted prices in active markets for identical instruments. Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value are classified according to the lowest level input that is significant to their valuation. A financial instrument that has a significant unobservable input along with significant observable inputs may still be classified as a Level 3 instrument. We generally determine or calculate the fair value of financial instruments using quoted market prices in active markets when such information is available or use appropriate present value or other valuation techniques, such as discounted cash flow analyses, incorporating available market discount rate information for similar types of instruments and our estimates for non-performance and liquidity risk. These techniques are significantly affected by the assumptions used, including the discount rate, credit spreads, and estimates of future cash flow. There were no assets or liabilities measured at fair value on a nonrecurring basis during the year ended December 31, 2019.
Fair Value Measurement Of Financial Instruments	Fair Value Measurement of Financial Instruments Our consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, notes receivable, deposits, tenant and other receivables, certain other assets, accounts payable and accrued liabilities, security deposits and loans payable. With the exception of the Friendswood TRS note receivable (see Note 6) and loans payable discussed below, we consider the carrying values to approximate fair value for such financial instruments because of the short period of time between origination of the instruments and their expected payment. As of December 31, 2019 and 2018, the fair value of the Friendswood TRS note receivable (see Note 6) was $505,000 compared to the carrying value of $484,000. The fair value of the note receivable was estimated based on cash flow analysis at a weighted-average discount rate of 4.6%. As the inputs to our valuation estimate are neither observable in nor supported by market activity, our notes receivable are classified as Level 3 assets within the fair value hierarchy. As of December 31, 2019 and 2018, the fair value of loans payable was $47.4 million and $66.5 million, compared to the principal balance (excluding debt discount) of $47.0 million and $66.1 million, respectively. The fair value of loans payable was estimated using lending rates available to us for financial instruments with similar terms and maturities. To estimate fair value as of December 31, 2019, we utilized discount rates ranging from 4.2% to 6.0% and a weighted average discount rate of 4.6%. As the inputs to our valuation estimate are neither observable in nor supported by market activity, our loans payable are classified as Level 3 liabilities within the fair value hierarchy. At December 31, 2019 and 2018, we do not have any significant financial assets or financial liabilities that are measured at fair value on a recurring basis in our consolidated financial statements.
Variable Interest Entity	Variable Interest Entities We analyze our contractual and/or other interests to determine whether such interests constitute an interest in a variable interest entity (“VIE”) in accordance with ASC 810, Consolidation , and, if so, whether we are the primary beneficiary. If we are determined to be the primary beneficiary of a VIE, we must consolidate the VIE. A VIE is an entity with insufficient equity investment or in which the equity investors lack some of the characteristics of a controlling financial interest. In determining whether it is the primary beneficiary, we consider, among other things, whether it has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, including, but not limited to, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. We also consider whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE.
Tenant and Other Receivables and Valuation of Receivables	Tenant and Other Receivables and Valuation of Receivables Tenant and other receivables are comprised of rental and tenant reimbursement billings due from tenants, the cumulative amount of future adjustments necessary to present rental income on a straight-line basis, asset management fees and distributions receivable. Tenant receivables for rental revenues are recorded at the original amount earned. Management assesses the likelihood of realizing other receivables on an ongoing basis and provides for allowances as such balances, or portions thereof, are estimated to become uncollectible.
Deferred Financing Costs	Deferred Financing Costs Costs incurred with potential financing arrangements are recorded as deferred debt issuance costs. Costs incurred in connection with completed debt financing are recorded as debt issuance costs. Debt issuance costs are amortized using the straight-line basis which approximates the effective interest rate method, over the contractual terms of the respective financings, and are presented net of loans payable in loans payable, net of debt issuance costs, in the consolidated balance sheets.
Deferred Leasing Commissions	Deferred Leasing Commissions Leasing commissions (paid to CRA prior to April 1, 2014) were capitalized at cost and are being amortized on a straight-line basis over the related lease term. As of December 31, 2019 and 2018, total costs incurred were $1.1 million and $1.9 million, respectively, and the unamortized balance was approximately $0.6 million and $1.1 million, respectively. Amortization expense for the years ended December 31, 2019 and 2018 was approximately $51,000 and $140,000, respectively.
Other Assets	Other Assets Other assets consist primarily of deferred financing costs, prepaid insurance, property taxes and other. Additionally, other assets will be amortized to expense over their future service periods. Balances without future economic benefit are expensed as they are identified.
Equity-Method Investments	Equity-Method Investments We report our investments in unconsolidated entities, over whose operating and financial policies we have the ability to exercise significant influence but not control, under the equity method of accounting. Under this method of accounting, our pro rata share of the applicable entity’s earnings or losses is included in our consolidated statements of operations. We initially record our investments based on either the carrying value for properties contributed or the cash invested. We evaluate our equity-method investments for impairment whenever events or changes in circumstances indicate that the carrying value of our investments may exceed the fair value. If it is determined that a decline in the fair value of our investments is not temporary, and if such reduced fair value is below its carrying value, an impairment is recorded. Determining fair value involves significant judgment. Our estimates consider available evidence including the present value of the expected future cash flows discounted at market rates, general economic conditions and other relevant factors. We did not record any impairments related to our equity-method investments for the years ended December 31, 2019 and 2018.
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers (Topic 606) . Our adoption of this new revenue recognition standard did not have a significant impact on our consolidated financial statements as our rental revenue, including tenant reimbursements, relates to triple net leases, which are excluded from this standard. Additionally, interest income from our notes receivable is excluded from this standard. Acquisition fees arise from contractual agreements with our joint venture partners and are earned and paid at the time we close an acquisition, therefore, satisfying our performance obligations at that time. We earn our asset management fees based on a percentage of the purchase price or equity raised. As the manager, our duty is to manage the day-to-day operations of the special-purpose entities which own the properties. Asset management fees are recognized as a single performance obligation (managing the properties) comprised of a series of distinct services (handling issues with our tenants, etc.). We believe that the overall service of asset management is substantially the same each day and has the same pattern of performance over the term of the agreement. As a result, each day of service represents a performance obligation satisfied at that point in time. These fees are recognized at the end of each period for services performed during that period, billed monthly and paid quarterly.
Stock-Based Compensation	Stock-Based Compensation We record stock-based compensation expense for share-based payments to employees and directors, including grants of stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. Compensation expense is recognized ratably over the vesting term and is included in general and administrative expense in our consolidated statements of operations. Forfeitures are recognized as they occur. See Note 10 for further information.
Noncontrolling Interest in Consolidated Subsidiary	Noncontrolling Interest in Consolidated Subsidiary Noncontrolling interest relates to the interest in the consolidated entities that are not wholly-owned by us. As of December 31, 2019 and 2018, the noncontrolling interest mainly relates to CHP, LLC. ASC 810‑10‑65, Consolidation , clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. ASC 810‑10‑65 also requires consolidated net income to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest and requires disclosure, on the face of the consolidated statements of operations, of the amounts of consolidated net income attributable to the parent and to the noncontrolling interest. We periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling interest as permanent equity in the consolidated balance sheets. Any noncontrolling interest that fails to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (a) the carrying amount, or (b) its redemption value as of the end of the period in which the determination is made.
Income Taxes	Income Taxes We have elected to be taxed as a REIT, under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”) beginning with our taxable year ending December 31, 2006. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to currently distribute at least 90% of the REIT’s ordinary taxable income to stockholders. As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service were to grant us relief under certain statutory provisions. Such an event could materially and adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we will be organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate for the foreseeable future in such a manner so that we will remain qualified as a REIT for federal income tax purposes. Given the applicable statute of limitations, we generally are subject to audit by the Internal Revenue Service (“IRS”) for the year ended December 31, 2016 and subsequent years, and state income tax returns are subject to audit for the year ended December 31, 2015 and subsequent years. We have elected to treat SAM TRS as a taxable REIT subsidiary, which generally may engage in any business, including the provision of customary or non-customary services for our tenants. SAM TRS is treated as a regular corporation and is subject to federal income tax and applicable state income and franchise taxes at regular corporate rates. SAM TRS has deferred tax assets related to their NOL (which expires in or after 2035 for federal and state) for a total of $1,586,000, which has a full valuation allowance as of December 31, 2019 and 2018. Due to the losses incurred and the full valuation allowance on deferred tax assets, there was no tax provision related to SAM TRS in 2019 and 2018.
Uncertain Tax Positions	Uncertain Tax Positions In accordance with the requirements of ASC 740, Income Taxes, favorable tax positions are included in the calculation of tax liabilities if it is more likely than not that our adopted tax position will prevail if challenged by tax authorities. As a result of our REIT status, we are able to claim a dividends-paid deduction on our tax return to deduct the full amount of common dividends paid to stockholders when computing our annual taxable income, which results in our taxable income being passed through to our stockholders. A REIT is subject to a 100% tax on the net income from prohibited transactions. A “prohibited transaction” is the sale or other disposition of property held primarily for sale to customers in the ordinary course of a trade or business. There is a safe harbor provision which, if met, expressly prevents the Internal Revenue Service from asserting the prohibited transaction test. We have no income tax expense, deferred tax assets or deferred tax liabilities associated with any such uncertain tax positions for the operations of any entity included in the consolidated results of operations. We classify interest and penalties related to uncertain tax positions, if any, in our consolidated financial statements as a component of general and administrative expense.
Basic and Diluted Net Income (Loss) and Distributions per Common Share	Basic and Diluted Net Income (Loss) and Distributions per Common Share Basic earnings per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all stock options are used to repurchase common stock at our NAV value. See Note 12 for further information.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements On January 1, 2019, the Company adopted the FASB Accounting Standards Update (“ASU”) 2016-02, Leases (“Topic 842”), using the modified retrospective approach and have elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, permits us to carry forward our prior conclusions for lease classification, the ability not to reassess whether any existing or expired contracts contain leases, lease classifications for existing or expired leases, and initial direct costs on existing leases. We also made an accounting policy election to keep short-term leases less than twelve months off the balance sheet for all classes of underlying assets. The new standard requires a lessor to classify leases as either sales-type, finance or operating leases. A lease will be treated as a sales-type lease if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor does not convey risks and rewards or control, an operating lease results. After evaluating our tenant leases, we have concluded that these are operating-type leases. Additionally, lessors were provided with the option to elect a practical expedient, which we elected, allowing them to not separate lease and nonlease components in a contract for the purpose of revenue recognition and disclosure. This practical expedient is limited to circumstances in which: (i) the timing and pattern of transfer are the same for the nonlease component and the related lease component and (ii) the lease component, if accounted for separately, would be classified as an operating lease. This practical expedient causes an entity to assess whether a contract is predominantly lease or service based and recognize the entire contract under the relevant accounting guidance (i.e., predominantly lease-based would be accounted for under ASU 2016-02 and predominantly service-based would be accounted for under the Revenue ASUs). The FASB also issued ASU 2018-20 “Leases (Topic 842) - Narrow Improvements for Lessors,” which provides lessors the ability to make an accounting policy election not to evaluate whether certain sales taxes and other similar taxes imposed by a governmental authority on a specific lease revenue producing transaction are the primary obligation of the lessor as owner of the underlying leased asset. A lessor that makes this election will exclude these taxes from the measurement of lease revenue and the associated expense. Upon adoption of ASC 842, we utilized this practical expedient in cases where real estate taxes were paid directly by our tenants to taxing authorities. For triple-net leasing arrangements in which the tenant remits payment for real estate taxes to us and we pay the taxing authority, we have included the associated revenue and expense in total rental revenues and property operating costs on the consolidated statements of operations. This reporting had no impact on our net income. Additionally, under Topic 842, we must assess if all payments due under the lease are likely to be collected. If tenant lease payments are not likely to be collected, then the revenues will be recognized on a cash basis (or if the answer changes at a later date, the revenues are adjusted to reflect what it would have been on a cash basis) and the adjustments will be recorded through rental revenues, rather than bad debt expense. We did not have any collectability issues related to our leases for the year ended December 31, 2019. As generally accepted accounting principles for lessors remains mostly unchanged, the adoption of Topic 842 did not have a material impact on the total amount of revenues recognized from our leases from our tenants, however, as of January 1, 2019, the presentation of our rental revenues and tenant reimbursements were combined into one line item on our consolidated statements of operations under lease revenue. All tenant leases prior to January 1, 2019 will be presented under ASC 840. During the years ended December 31, 2019 and 2018, the Company received $0.8 million and $1.1 million, respectively, from its tenants for reimbursement of property taxes and insurance.
Lake forest Lease	Lake Forest Lease We have entered into a lease agreement, as amended, for corporate office space located in Lake Forest, California, which expires in April 2022 (the “LF Lease”). On January 1, 2019, the Company adopted Topic 842 and recorded a right-of-use asset and lease liability equal to the present value of the remaining lease payments within the consolidated balance sheet. As a result, the Company recognized a right-of-use asset (“ROU”) of $0.3 million and a lease liability of $0.3 million on its consolidated balance sheet as of January 1, 2019. Comparative periods are presented in accordance with ASC Topic 840 and do not include any retrospective adjustments to comparative periods to reflect the adoption of Topic 842. The adoption of this standard did not have any impact on the Company’s consolidated statement of operations or the consolidated statement of cash flows. The LF Lease has fixed lease payments. We make separate payments to the lessor based on the lessor’s property and casualty insurance costs and the property taxes assessed on the property, as well as a portion of the common area maintenance associated with the property. We have elected the practical expedient not to separate lease and nonlease components for our corporate office lease. As of December 31, 2019, the Company had a ROU operating lease asset of $0.2 million recorded in other assets in our consolidated balance sheets and a lease liability of $0.2 million recorded in our consolidated balance sheets in accrued liabilities. The Company will recognize lease expense, calculated as the remaining cost of the lease allocated over the remaining lease term on a straight-line basis. Lease expense will be presented as part of continuing operations within general and administrative expenses in the consolidated statement of operations. For the year ended December 31, 2019, the Company recognized $100,000 in lease expense. For the year ended December 31, 2019, the Company paid $100,000 in rent relating to the LF Lease. As a payment arising from an operating lease, the $100,000 is classified within operating activities in the consolidated statements of cash flows. As of December 31, 2019, the remaining lease term for LF Lease is 28 months. Because we do not have access to the discount rate implicit in the lease, we have utilized our estimated incremental borrowing rate as the discount rate. The estimated discount rate associated with our corporate operating lease is 5%. Pursuant to ASC 842, lease payments on the LF Lease for each of the following years ending December 31 are as follows: Year Lease payments 2020 104,000 2021 108,000 2022 36,000 Total lease payments $ 248,000 Less effect of discounting (15,000) Total lease liability Pursuant to ASC 840, lease payments on the LF Lease as of December 31, 2018 were as follows: Year Lease payments 2019 100,000 2020 104,000 2021 108,000 2022 36,000 $ 348,000 For the year ended December 31, 2018, the Company recognized $100,000 in lease expense.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In January 2020, the FASB issued ASU 2020-01 (“Update”) to clarify the interaction among the accounting standards for equity securities, equity method investments and certain derivatives. The new ASU clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, Investments—Equity Method and Joint Ventures, for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2018-19”), which amends ASU 2016-13 to clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20, and instead, impairment of such receivables should be accounted for in accordance with Topic 842, Leases. ASU 2016-13 and ASU 2018-19 are effective for fiscal years and interim periods within those years beginning after December 15, 2019, with early adoption permitted as of the fiscal years beginning after December 15, 2018. An entity will apply the amendments in these updates through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption of the new standard on January 1, 2020 did not have a material effect on the Company’s financial position, results of operations, or cash flows.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Schedule of restrictions on Cash and Cash Equivalents	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown on the consolidated statements of cash flows: December 31, December 31, 2019 2018 Cash and cash equivalents $ 13,260,000 $ 11,463,000 Restricted cash 2,817,000 3,493,000 Total cash, cash equivalents, and restricted cash shown on the consolidated statements of cash flows $ 16,077,000 $ 14,956,000
Schedule of lease payments on the LF Lease as per 842	Pursuant to ASC 842, lease payments on the LF Lease for each of the following years ending December 31 are as follows: Year Lease payments 2020 104,000 2021 108,000 2022 36,000 Total lease payments $ 248,000 Less effect of discounting (15,000) Total lease liability
Schedule of lease payments on the LF Lease as per 840	Pursuant to ASC 840, lease payments on the LF Lease as of December 31, 2018 were as follows: Year Lease payments 2019 100,000 2020 104,000 2021 108,000 2022 36,000 $ 348,000

Investments in Real Estate Pr_2

Investments in Real Estate Properties (Tables)	12 Months Ended
	Dec. 31, 2019
Investments in Real Estate Properties
Schedule of business acquisitions, by acquisition	As of December 31, 2019 and 2018, investments in real estate properties including those held by our consolidated subsidiaries: 2019 2018 Land $ 6,237,000 $ 8,003,000 Buildings and improvements 48,295,000 69,284,000 Less: accumulated depreciation (8,444,000) (11,162,000) Buildings and improvements, net 39,851,000 58,122,000 Furniture and fixtures 4,230,000 6,829,000 Less: accumulated depreciation (3,805,000) (5,952,000) Furniture and fixtures, net 425,000 877,000 Real estate properties, net $ 46,513,000 $ 67,002,000
Schedule of real estate properties	The following table provides summary information regarding our portfolio (excluding the 50 properties owned by our unconsolidated Equity-Method Investments) as of December 31, 2019: Loans Payable, Excluding Debt Purchase Issuance Number of Property Location Date Purchased Type (1) Price Costs Beds Sheridan Care Center Sheridan, OR August 3, 2012 SNF $ 4,100,000 $ 4,485,000 51 Fernhill Care Center Portland, OR August 3, 2012 SNF 4,500,000 3,934,000 63 Friendship Haven Healthcare and Rehabilitation Center Galveston County, TX September 14, 2012 SNF 15,000,000 10,725,000 150 Pacific Health and Rehabilitation Center Tigard, OR December 24, 2012 SNF 8,140,000 6,559,000 73 Brookstone of Aledo Aledo, IL July 2, 2013 AL 8,625,000 6,983,000 66 Sundial Assisted Living Redding, CA December 18, 2013 AL 3,500,000 3,843,000 65 Pennington Gardens Chandler, AZ July 17, 2017 AL/MC 13,400,000 10,473,000 90 Total: $ 57,265,000 $ 47,002,000 558 (1) SNF is an abbreviation for skilled nursing facility. AL is an abbreviation for assisted living facility. MC is an abbreviation for memory care facility.
Schedule of Future Minimum Rental Payments to be Received	The future minimum lease payments to be received under existing operating leases for our consolidated properties as of December 31, 2019 are as follows: Years ending December 31, 2020 5,400,000 2021 5,511,000 2022 5,626,000 2023 5,742,000 2024 5,441,000 Thereafter 28,890,000 $ 56,610,000

Loans Payable (Tables)

Loans Payable (Tables)	12 Months Ended
	Dec. 31, 2019
Loans Payable
Schedule of debt	As of December 31, 2019 and 2018, loans payable consisted of the following: December 31, 2019 December 31, 2018 Loan payable to CIBC Bank USA in monthly installments of approximately $75,000, including cash collateral and interest at LIBOR plus 3.75% (5.45% and 6.12% at December 31, 2019 and 2018, respectively), due in March 2021, and collateralized by Friendship Haven. $ 10,725,000 $ 10,725,000 Loan payable to Capital One Multifamily Finance, LLC (insured by HUD) in monthly installments of approximately $49,000, including interest at a fixed rate of 4.23%, due in September 2053, and collateralized by Pennington Gardens. $ 10,473,000 $ 10,610,000 Loan payable to Healthcare Financial Solutions, LLC (refinanced with HUD-insured loan in April 2019) was due in monthly installments of approximately $21,000, including cash collateral and interest at LIBOR (floor of 0.50%) plus 4.0% (6.4% at December 31, 2018, respectively), and was collateralized by Sundial Assisted Living. $ — $ 2,800,000 Loans payable to ORIX Real Estate Capital, LLC (formerly Lancaster Pollard) (insured by HUD) in monthly installments of approximately $139,000, including interest, ranging from a fixed rate of 3.70% to 4.2%, due in September 2039 through April 2054, and as of December 31, 2019, collateralized by Sheridan, Fernhill, Pacific Health, Aledo and Sundial Assisted Living. As of December 31, 2018, collateralized by Sheridan, Fernhill, Pacific Health, Shelby, Hamlet, Carteret, Aledo and Danby. $ 25,804,000 $ 41,977,000 47,002,000 66,112,000 Less debt issuance costs (1,425,000) (2,062,000) Total loans payable $ 45,577,000 $ 64,050,000
Schedule of maturities of long-term debt	The principal payments due on the loans payable (excluding debt issuance costs) for each of the five following years and thereafter ending December 31 are as follows: Principal Year Amount 2020 836,000 2021 11,594,000 2022 903,000 2023 939,000 2024 976,000 Thereafter 31,754,000 $ 47,002,000

Equity-Method Investments (Tabl

Equity-Method Investments (Tables)	12 Months Ended
	Dec. 31, 2019
Equity-Method Investments
Schedule of Summarized Financial Data for Equity-Method Investments	Our Equity-Method Investments are significant equity-method investments in the aggregate. The results of operations of our Equity-Method Investments for the year ending December 31, 2019 are summarized below: Fantasia Fantasia Fantasia FPH Combined SUL JV JV II JV III JV JV Indiana JV Total Revenue $ 18,295,000 $ 3,271,000 $ 3,536,000 $ 7,914,000 $ 3,564,000 $ 9,464,000 $ 46,044,000 Net Operating Income $ 13,972,000 $ 1,488,000 $ 2,859,000 $ 5,908,000 $ 3,052,000 $ 9,451,000 $ 36,730,000 Income from Operations $ 7,851,000 $ 824,000 $ 1,912,000 $ 4,135,000 $ 1,677,000 $ 6,042,000 $ 22,441,000 Net Income $ 1,284,000 $ (315,000) $ 923,000 $ 1,302,000 $ (723,000) $ (516,000) $ 1,955,000 Summit interest in Equity-Method Investments net income $ 128,000 $ (110,000) $ 185,000 $ 130,000 $ (72,000) $ (77,000) $ 184,000 The results of operations of our Equity-Method Investments for the year ending December 31, 2018 are summarized below: Fantasia Fantasia Fantasia FPH Combined SUL JV JV II JV III JV JV Total Revenue $ 16,676,000 $ 2,043,000 $ 3,509,000 $ 7,812,000 $ 3,559,000 $ 33,599,000 Net Operating Income $ 14,226,000 $ 1,769,000 $ 2,844,000 $ 5,911,000 $ 3,052,000 $ 27,802,000 Income from Operations $ 8,110,000 $ 1,009,000 $ 1,922,000 $ 4,135,000 $ 1,707,000 $ 16,883,000 Net Income $ 1,832,000 $ 34,000 $ 459,000 $ 1,358,000 $ 305,000 $ 3,988,000 Summit interest in Equity-Method Investments net income $ 183,000 $ 14,000 $ 92,000 $ 136,000 $ 30,000 $ 455,000
Schedule of Distributions receivable	As of December 31, 2019 and 2018, we have distributions receivable, which is included in tenant and other receivables in our consolidated balance sheets, as follows: December 31, December 31, 2019 2018 SUL JV $ 97,000 $ 168,000 Fantasia JV 180,000 156,000 Fantasia II JV 48,000 52,000 Fantasia III JV 117,000 90,000 FPH JV 39,000 13,000 Indiana JV 162,000 — Total $ 643,000 $ 479,000
Schedule of Cash Distributions	For the years ended December 31, 2019 and 2018, we received cash distributions, which are included in our cash flows from operating activities in the change in tenant and other receivables, and cash flows from investing activities, using the cumulative earnings approach, as follows: Year Ended December 31, 2019 Year Ended December 31, 2018 Total Cash Cash Flow Cash Flow Total Cash Cash Flow Cash Flow Distributions from from Distributions from from Received Operating Investing Received Operating Investing SUL JV $ 548,000 $ 128,000 $ 420,000 $ 494,000 $ 183,000 $ 311,000 Fantasia JV — — — 45,000 14,000 31,000 Fantasia II JV 276,000 185,000 91,000 259,000 92,000 167,000 Fantasia III JV 160,000 130,000 30,000 300,000 136,000 164,000 FPH JV 306,000 — 306,000 85,000 30,000 55,000 Indiana JV 377,000 — 377,000 — — — Total $ 1,667,000 $ 443,000 $ 1,224,000 $ 1,183,000 $ 455,000 $ 728,000

Receivables (Tables)

Receivables (Tables)	12 Months Ended
	Dec. 31, 2019
Receivables
Schedule of tenant and other receivables	Tenant and other receivables, net consists of: December 31, December 31, 2019 2018 Straight-line rent receivables $ 2,546,000 $ 3,675,000 Distribution receivables from Equity-Method Investments 643,000 479,000 Receivable from JV 2 properties 184,000 184,000 Asset management fees 430,000 214,000 Other receivables 9,000 114,000 Total $ 3,812,000 $ 4,666,000

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2019
Related Party Transactions
Schedule of related party transactions	As of December 31, 2019 and 2018, we had the following receivables and reserves: Receivables Reserves Balance Organizational and offering costs $ 738,000 $ (738,000) $ — Asset management fees and expenses 32,000 (32,000) — Operating expenses (direct and indirect) 189,000 (189,000) — Operating expenses (2%/25% Test) 1,717,000 (1,717,000) — Total $ 2,676,000 $ (2,676,000) $ —

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2019
Equity
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The estimated fair value using the Black-Scholes option-pricing model with the following weighted average assumptions: 2019 Stock options granted 605,000 Expected volatility 21.75 % Expected term years Risk-free interest rate 2.38 % Dividend yield 0 % Fair value per share $ 0.58
Share-based Compensation, Stock Options, Activity	The following table summarizes our stock options as of December 31, 2019: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Options outstanding at January 1, 2019 1,230,908 $ 1.99 — — Granted 605,000 2.26 — — Exercised — — — — Cancelled/forfeited (9,000) 2.17 — — Options outstanding at December 31, 2019 1,826,908 $ 2.09 7.76 $ 1,349,000 Options exercisable at December 31, 2019 1,444,624 $ 2.04 7.44 $ 1,133,000
Schedule of Unrecognized Compensation Cost, Nonvested Awards	Years Ending December 31, 2020 144,000 2021 58,000 2022 6,000 $ 208,000

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings Per Share
Schedule of basic and diluted earning per share and reconciliation weighted average common stock outstanding	The following table presents the calculation of basic and diluted earnings per share (“EPS”) for the Company’s common stock for the years ended December 31, 2019 and 2018, and reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS: 2019 2018 Numerator: Income (loss) from continuing operations $ 3,030,000 $ (975,000) Income (loss) from continuing operations attributable to noncontrolling interest 83,000 (50,000) Income (loss) applicable to common stockholders, before discontinued operations 3,113,000 (1,025,000) Income from discontinued operations — 109,000 Net income (loss) applicable to common stockholders $ 3,113,000 $ (916,000) Denominator: Basic: Denominator for basic EPS - weighted average shares 23,027,978 23,027,978 Effect of dilutive shares: Stock options 478,500 — Denominator for diluted EPS – adjusted weighted average shares 23,506,478 23,027,978 Basic EPS $ 0.14 $ (0.04) Diluted EPS $ 0.13 $ (0.04)

Organization (Details)

Organization (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Organization [Line Items]
Equity Method Investment, Ownership Percentage	10.00%
Cornerstone Operating Partnership [Member]
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest	99.88%
Cornerstone Operating Partnership [Member] | Cornerstone Realty Advisors, LLC [Member]
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest by Affiliates	0.12%
Cornerstone Healthcare Partners [Member]
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest	95.00%
Cornerstone Healthcare Real Estate Fund [Member]
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest by Affiliates	5.00%
JV Properties [Member]
Organization [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	4.70%
Summit Union Life Holding [Member]
Organization [Line Items]
Real Estate Investment Trust Own Percentage	10.00%
Four Jv Properties [Member]
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest	95.30%
Summit Fantasia ll Holdings LLC [Member]
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest by Affiliates	20.00%
Equity Method Investment, Ownership Percentage		20.00%
Fantasia III JV
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest	10.00%
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest by Affiliates		10.00%
Summit Fantasy Pearl Holdings, LLC [Member]
Organization [Line Items]
Equity Method Investment, Ownership Percentage	10.00%	10.00%
Fantasia JV
Organization [Line Items]
Equity Method Investment, Ownership Percentage	10.00%	10.00%
Summit Fantasia Holdings, LLC
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest	35.00%
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest by Affiliates	35.00%	35.00%
Equity Method Investment, Ownership Percentage	20.00%
Summit Health Care Four Properties [Member]
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest by Affiliates	95.30%
Summit Health Care Three Properties [Member]
Organization [Line Items]
Equity Method Investment, Ownership Percentage	100.00%
Indiana JV
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest	15.00%
Equity Method Investment, Ownership Percentage	15.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Summary of Significant Accounting Policies
Cash and cash equivalents	$ 13,260,000	$ 11,463,000
Restricted cash	2,817,000	3,493,000
Total cash, cash equivalents, and restricted cash shown on the consolidated statements of cash flows	$ 16,077,000	$ 14,956,000	$ 7,298,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Lease liability (Details) - USD ($)	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Summary of Significant Accounting Policies
2019			$ 100,000
2020	$ 104,000		104,000
2021	108,000		108,000
2022	36,000		36,000
Total lease payments	248,000		$ 348,000
Less effect of discounting	(15,000)
Total lease liability	$ 233,000	$ 300,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2019
Summary of Significant Accounting Policies [Line Items]
Loans Payable, Fair Value Disclosure	$ 47,400,000	$ 66,500,000
Deferred Costs, Total	1,100,000	1,900,000
Deferred Costs, Leasing, Net, Total	607,000	1,133,000
Amortization	51,000	140,000
Deferred Tax Assets, Valuation Allowance	1,586,000	1,586,000
Operating Lease, Right-of-Use Asset			$ 300,000
Operating Lease, Liability	$ 233,000		$ 300,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accounts Payable and Accrued Liabilities		Accounts Payable and Accrued Liabilities
Additions to Other Assets, Amount	$ 200,000
Accrued Liabilities	200,000
Operating Lease, Expense	100,000
Payments for Rent	100,000
Operating Lease, Payments	$ 100,000
Operating Lease, Weighted Average Discount Rate, Percent	5.00%
Operating Remaining lease term	28 months
Tenant reimbursement	$ 800,000	1,100,000
Financing Receivable, Net	575,000	730,000
Long-term Debt, Gross	47,002,000	66,112,000
Friendswood TRS [Member]
Summary of Significant Accounting Policies [Line Items]
Notes Receivable, Fair Value Disclosure	505,000	505,000
Financing Receivable, Net	95,000
Notes Receivables Carrying Value	$ 484,000	$ 484,000
Operating Partnership [Member]
Summary of Significant Accounting Policies [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	99.88%
Cornerstone Healthcare Partners [Member]
Summary of Significant Accounting Policies [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	95.00%
Real Estate Investment Trust [Member]
Summary of Significant Accounting Policies [Line Items]
Percentage Of Taxable Income	90.00%
Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Fair Value, Inputs Discount Rate, Loans payable	4.20%
Minimum [Member] | Property, Plant and Equipment, Other Types [Member]
Summary of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	15 years
Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Fair Value, Inputs Discount Rate, Loans payable	6.00%
Maximum [Member] | Property, Plant and Equipment, Other Types [Member]
Summary of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	39 years
Weighted Average [Member]
Summary of Significant Accounting Policies [Line Items]
Fair Value, Inputs Discount Rate, Loans payable	4.60%

Investments in Real Estate Pr_3

Investments in Real Estate Properties - Investments in real estate properties (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Real Estate Properties [Line Items]
Real estate properties, net	$ 46,513,000	$ 67,002,000
Land [Member]
Real Estate Properties [Line Items]
Real estate properties, net	6,237,000	8,003,000
Buildings and improvements [Member]
Real Estate Properties [Line Items]
Investments in real estate	48,295,000	69,284,000
Less: accumulated depreciation	(8,444,000)	(11,162,000)
Real estate properties, net	39,851,000	58,122,000
Furniture and fixtures [Member]
Real Estate Properties [Line Items]
Investments in real estate	4,230,000	6,829,000
Less: accumulated depreciation	(3,805,000)	(5,952,000)
Real estate properties, net	$ 425,000	$ 877,000

Investments in Real Estate Pr_4

Investments in Real Estate Properties - Summary information regarding portfolio (Details)	12 Months Ended
	Dec. 31, 2019USD ($)
Real Estate Properties [Line Items]
Purchase Price	$ 57,265,000
Loans Payable, Excluding Debt Issuance Costs	$ 47,002,000
Number of Beds	558
Sheridan Care Center [Member]
Real Estate Properties [Line Items]
Location	Sheridan, OR
Date Purchased	Aug. 3, 2012
Type Of property	SNF	[1]
Purchase Price	$ 4,100,000
Loans Payable, Excluding Debt Issuance Costs	$ 4,485,000
Number of Beds	51
Fernhill Care Center [Member]
Real Estate Properties [Line Items]
Location	Portland, OR
Date Purchased	Aug. 3, 2012
Type Of property	SNF	[1]
Purchase Price	$ 4,500,000
Loans Payable, Excluding Debt Issuance Costs	$ 3,934,000
Number of Beds	63
Friendship Haven Healthcare and Rehabilitation Center [Member]
Real Estate Properties [Line Items]
Location	Galveston County, TX
Date Purchased	Sep. 14, 2012
Type Of property	SNF	[1]
Purchase Price	$ 15,000,000
Loans Payable, Excluding Debt Issuance Costs	$ 10,725,000
Number of Beds	150
Pacific Health and Rehabilitation Center [Member]
Real Estate Properties [Line Items]
Location	Tigard, OR
Date Purchased	Dec. 24, 2012
Type Of property	SNF	[1]
Purchase Price	$ 8,140,000
Loans Payable, Excluding Debt Issuance Costs	$ 6,559,000
Number of Beds	73
Brookstone of Aledo [Member]
Real Estate Properties [Line Items]
Location	Aledo, IL
Date Purchased	Jul. 2, 2013
Type Of property	AL	[1]
Purchase Price	$ 8,625,000
Loans Payable, Excluding Debt Issuance Costs	$ 6,983,000
Number of Beds	66
Sundial Assisted Living [Member]
Real Estate Properties [Line Items]
Location	Redding, CA
Date Purchased	Dec. 18, 2013
Type Of property	AL	[1]
Purchase Price	$ 3,500,000
Loans Payable, Excluding Debt Issuance Costs	$ 3,843,000
Number of Beds	65
Pennington Gardens [Member]
Real Estate Properties [Line Items]
Location	Chandler, AZ
Date Purchased	Jul. 17, 2017
Type Of property	AL/MC	[1]
Purchase Price	$ 13,400,000
Loans Payable, Excluding Debt Issuance Costs	$ 10,473,000
Number of Beds	90
[1]	(1)SNF is an abbreviation for skilled nursing facility. AL is an abbreviation for assisted living facility. MC is an abbreviation for memory care facility.

Investments in Real Estate Pr_5

Investments in Real Estate Properties - Future Minimum Lease Payments (Details)	Dec. 31, 2019USD ($)
Investments in Real Estate Properties
2020	$ 5,400,000
2021	5,511,000
2022	5,626,000
2023	5,742,000
2024	5,441,000
Thereafter	28,890,000
Operating Leases, Future Minimum Payments Receivable	$ 56,610,000

Investments in Real Estate Pr_6

Investments in Real Estate Properties - Additional Information (Details)	1 Months Ended	12 Months Ended
	Mar. 30, 2018USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Investments in Real Estate Properties
Number of Real Estate Properties		7
Percentage of Real Estate Properties		100.00%
Depreciation		$ 1,700,000	$ 2,900,000
Payments to Acquire Land	$ 685,000
Acquisition Costs, Period Cost	30,000
Increase In Annual Rental Payments	$ 36,000

Loans Payable - Debt (Details)

Loans Payable - Debt (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 47,002,000	$ 66,112,000
Less debt issuance costs	(1,425,000)	(2,062,000)
Total loans payable	45,577,000	64,050,000
Cibc Bank [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	10,725,000	10,725,000
Capital One Multifamily Finance LLC [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	10,473,000	10,610,000
Healthcare Financial Solutions Llc [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	0	2,800,000
ORIX Real Estate Capital LLC [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 25,804,000	$ 41,977,000

Loans Payable (Details) _Parent

Loans Payable (Details) [Parenthetical] - USD ($)	1 Months Ended	12 Months Ended
	May 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Cibc Bank [Member]
Debt Instrument, Periodic Payment	$ 18,000	$ 75,000
Debt Instrument, Basis Spread on Variable Rate		3.75%
Debt Instrument, Interest Rate, Stated Percentage		5.45%	6.12%
Capital One Multifamily Finance LLC [Member]
Debt Instrument, Periodic Payment		$ 49,000
Debt Instrument, Interest Rate, Stated Percentage		4.23%
Healthcare Financial Solutions Llc [Member]
Debt Instrument, Periodic Payment		$ 21,000
LIBOR floor (as a percentage)		0.50%
Debt Instrument, Description of Variable Rate Basis		4.0%
Debt Instrument, Interest Rate, Stated Percentage			6.40%
ORIX Real Estate Capital LLC [Member]
Debt Instrument, Periodic Payment		$ 139,000
Debt Instrument, Description of Variable Rate Basis		0.65%
Debt Instrument, Interest Rate, Stated Percentage		4.20%
ORIX Real Estate Capital LLC [Member] | Minimum [Member]
Debt Instrument, Interest Rate, Stated Percentage		3.70%
ORIX Real Estate Capital LLC [Member] | Maximum [Member]
Debt Instrument, Interest Rate, Stated Percentage		4.20%

Loans Payable - Maturities of l

Loans Payable - Maturities of long term debt (Details)	Dec. 31, 2019USD ($)
Loans Payable
2020	$ 836,000
2021	11,594,000
2022	903,000
2023	939,000
2024	976,000
Thereafter	31,754,000
Total	$ 47,002,000

Loans Payable - Additional Info

Loans Payable - Additional Information (Details) - USD ($)	Mar. 30, 2018	May 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Interest Expense, Debt			$ 2,500,000	$ 3,300,000
Long-term Debt, Gross			47,002,000	66,112,000
Amortization of Debt Discount (Premium)			$ 100,000	300,000
Debt Instrument, Redemption, Description			prepayment penalty of 10% in year 1, which reduces each year by 100 basis points
Payments of Debt Issuance Costs			$ 210,000	582,000
Debt Instrument, Unamortized Discount			1,425,000	$ 2,062,000
Healthcare Financial Solutions Llc [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment			21,000
Debt Instrument, Interest Rate, Stated Percentage				6.40%
Long-term Debt, Gross			$ 0	$ 2,800,000
Debt Instrument, Description of Variable Rate Basis			4.0%
Capital One National Association Loan [Member]
Debt Instrument [Line Items]
Debt Extinguishment Percentage			10.00%
Payments of Debt Issuance Costs			$ 300,000
Debt Instrument, Term			35 years
Debt Issuance Costs, Gross			$ 15,000
Cibc Bank [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment		$ 18,000	$ 75,000
Debt Instrument, Interest Rate, Stated Percentage			5.45%	6.12%
Long-term Debt, Gross			$ 10,725,000	$ 10,725,000
Long-term Debt, Fair Value	$ 10,725,000
Prepayment Premium percentage thereafter			1.00%
Payments of Debt Issuance Costs	$ 200,000
Prepayment Premium percentage Prior to First anniversary			2.00%
Restricted Cash			$ 375,000	147,000
Cibc Bank [Member] | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment					$ 20,000	$ 19,000
HUD Pennington Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage			4.23%
Debt Instrument Mortgage Insurance Premium percentage			0.65%
ORIX Real Estate Capital LLC [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment			$ 139,000
Debt Instrument, Interest Rate, Stated Percentage			4.20%
Long-term Debt, Gross			$ 25,804,000	$ 41,977,000
Debt Instrument, Description of Variable Rate Basis			0.65%
Debt Instrument, Term			35 years
Prepayment Premium percentage Prior to First anniversary			10.00%
Reduction in Prepayment penalty after year 1 (as a percent)			1
Debt Issuance Costs, Gross			$ 210,000

Equity-Method Investments - Sum

Equity-Method Investments - Summarized Financial Data for Equity-Method Investments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Revenue	$ 46,044,000	$ 33,599,000
Net Operating Income	36,730,000	27,802,000
Income from Operations	22,441,000	16,883,000
Net Income	1,955,000	3,988,000
Summit interest in Equity-Method Investments net income	184,000	455,000
SUL JV
Schedule of Equity Method Investments [Line Items]
Revenue	18,295,000	16,676,000
Net Operating Income	13,972,000	14,226,000
Income from Operations	7,851,000	8,110,000
Net Income	1,284,000	1,832,000
Summit interest in Equity-Method Investments net income	128,000	183,000
Fantasia JV
Schedule of Equity Method Investments [Line Items]
Revenue	3,271,000	2,043,000
Net Operating Income	1,488,000	1,769,000
Income from Operations	824,000	1,009,000
Net Income	(315,000)	34,000
Summit interest in Equity-Method Investments net income	(110,000)	14,000
Fantasia II JV
Schedule of Equity Method Investments [Line Items]
Revenue	3,536,000	3,509,000
Net Operating Income	2,859,000	2,844,000
Income from Operations	1,912,000	1,922,000
Net Income	923,000	459,000
Summit interest in Equity-Method Investments net income	185,000	92,000
Fantasia III JV
Schedule of Equity Method Investments [Line Items]
Revenue	7,914,000	7,812,000
Net Operating Income	5,908,000	5,911,000
Income from Operations	4,135,000	4,135,000
Net Income	1,302,000	1,358,000
Summit interest in Equity-Method Investments net income	130,000	136,000
FPH JV
Schedule of Equity Method Investments [Line Items]
Revenue	3,564,000	3,559,000
Net Operating Income	3,052,000	3,052,000
Income from Operations	1,677,000	1,707,000
Net Income	(723,000)	305,000
Summit interest in Equity-Method Investments net income	(72,000)	$ 30,000
Indiana JV
Schedule of Equity Method Investments [Line Items]
Revenue	9,464,000
Net Operating Income	9,451,000
Income from Operations	6,042,000
Net Income	(516,000)
Summit interest in Equity-Method Investments net income	$ (77,000)

Equity-Method Investments - Dis

Equity-Method Investments - Distributions receivable (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Dividends Receivable	$ 643,000	$ 479,000
SUL JV
Dividends Receivable	97,000	168,000
Fantasia JV
Dividends Receivable	180,000	156,000
Fantasia II JV
Dividends Receivable	48,000	52,000
Fantasia III JV
Dividends Receivable	117,000	90,000
FPH JV
Dividends Receivable	39,000	$ 13,000
Indiana JV
Dividends Receivable	$ 162,000

Equity-Method Investments - Cas

Equity-Method Investments - Cash Distributions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Total Cash Distributions Received	$ 1,667,000	$ 1,183,000
Cash Flow from Operating Activities	443,000	455,000
Cash Flow from Investing Activities	1,224,000	728,000
SUL JV
Total Cash Distributions Received	548,000	494,000
Cash Flow from Operating Activities	128,000	183,000
Cash Flow from Investing Activities	420,000	311,000
Fantasia JV
Total Cash Distributions Received		45,000
Cash Flow from Operating Activities		14,000
Cash Flow from Investing Activities		31,000
Fantasia II JV
Total Cash Distributions Received	276,000	259,000
Cash Flow from Operating Activities	185,000	92,000
Cash Flow from Investing Activities	91,000	167,000
Fantasia III JV
Total Cash Distributions Received	160,000	300,000
Cash Flow from Operating Activities	130,000	136,000
Cash Flow from Investing Activities	30,000	164,000
FPH JV
Total Cash Distributions Received	306,000	85,000
Cash Flow from Operating Activities	0	30,000
Cash Flow from Investing Activities	306,000	$ 55,000
Indiana JV
Total Cash Distributions Received	377,000
Cash Flow from Investing Activities	$ 377,000

Equity-Method Investments - Add

Equity-Method Investments - Additional Information (Details)	Mar. 13, 2019item	Apr. 27, 2018	Apr. 30, 2018USD ($)	Apr. 30, 2017USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Apr. 30, 2019USD ($)	Apr. 30, 2015USD ($)
Membership interest					10.00%
Equity Method Investments					$ 13,131,000	$ 9,719,000
Dividends Receivable					643,000	479,000
Proceeds from Dividends Received					443,000	455,000
Summit Fantasia Holdings III, LLC [Member]
Equity Method Investments					1,600,000	1,700,000
Indiana JV
Dividends Receivable					162,000
SUL JV acquired [Member]
Proceeds from Dividends Received				$ 178,000
Adjustment To Additional Paid In Capital Increase From Cash Addition					0
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net						105,000
Additional Paid in Capital							$ 54,000
Summit Fantasia ll Holdings LLC [Member]
Equity Method Investments					1,500,000	1,600,000
Revenue from Contract with Customer, Including Assessed Tax					$ 1,200,000	700,000
Summit Fantasia Holdings III, LLC [Member]
Percentage of interest in annual return					9.00%
Indiana JV
Membership interest	15.00%
Membership interest acquired	15.00%
Number of skilled nursing facilities | item	14
Aggregate purchase price					$ 128,700,000
Equity Method Investments					$ 4,300,000
Summit Union Life Holdings, LLC [Member]
Minimum percentage of interest in annual return					9.00%
Percentage of interest in annual return					10.00%
Equity Method Investments					$ 3,100,000	3,300,000
Summit Union Life Holdings, LLC [Member] | Operating Partnership [Member]
Net Operating Cash Flows, Percentage of Interest					25.00%
Capital Proceeds, Percentage of Interest					25.00%
Fantasia JV
Equity Method Investments					$ 500,000	900,000
Summit Fantasia ll Holdings LLC [Member]
Percentage of interest in annual return			8.00%
Equity Method Investments					$ 2,100,000	2,200,000
Additional Paid in Capital			$ 1,250,000
Summit Fantasia ll Holdings LLC [Member] | Fantasia Investment III LLC [Member]
Net Operating Cash Flows, Percentage of Interest					70.00%
Capital Proceeds, Percentage of Interest					70.00%
Summit Fantasia ll Holdings LLC [Member] | Operating Partnership [Member]
Net Operating Cash Flows, Percentage of Interest		50.00%	50.00%		30.00%
Capital Proceeds, Percentage of Interest			50.00%		30.00%
Summit Fantasia Holdings III, LLC [Member] | Fantasia Investment III LLC [Member]
Net Operating Cash Flows, Percentage of Interest					75.00%
Capital Proceeds, Percentage of Interest					75.00%
Summit Fantasia Holdings III, LLC [Member] | Operating Partnership [Member]
Net Operating Cash Flows, Percentage of Interest					25.00%
Capital Proceeds, Percentage of Interest					25.00%
Summit Fantasy Pearl Holdings, LLC [Member]
Percentage of interest in annual return					9.00%
Summit Fantasy Pearl Holdings, LLC [Member] | Fantasia Investment III LLC [Member]
Net Operating Cash Flows, Percentage of Interest					7.25%
Capital Proceeds, Percentage of Interest					7.25%
Summit Fantasy Pearl Holdings, LLC [Member] | Summit Fantasy Pearl Holdings, LLC- Equity-Method Investment
Net Operating Cash Flows, Percentage of Interest					65.25%
Capital Proceeds, Percentage of Interest					65.25%
Summit Fantasy Pearl Holdings, LLC [Member] | Atlantis [Member]
Net Operating Cash Flows, Percentage of Interest					7.50%
Capital Proceeds, Percentage of Interest					7.50%
Summit Fantasy Pearl Holdings, LLC [Member] | Operating Partnership [Member]
Net Operating Cash Flows, Percentage of Interest					20.00%
Capital Proceeds, Percentage of Interest					20.00%
Best Years Llc [Member] | Summit Union Life Holdings, LLC [Member]
Net Operating Cash Flows, Percentage of Interest					75.00%
Capital Proceeds, Percentage of Interest					75.00%
JV 2 Properties [Member]
Dividends Receivable					$ 184,000	$ 184,000		$ 362,000
Minimum [Member] | Best Years Llc [Member] | Best Years Llc [Member]
Membership interest					9.00%
Maximum [Member] | Best Years Llc [Member] | Best Years Llc [Member]
Membership interest					10.00%

Receivables (Details)

Receivables (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Receivables
Straight-line rent receivables	$ 2,546,000	$ 3,675,000
Distribution receivables from Equity-Method Investments	643,000	479,000
Receivable from JV 2 properties	184,000	184,000
Asset management fees	430,000	214,000
Other receivables	9,000	114,000
Total	$ 3,812,000	$ 4,666,000

Receivables - Additional Inform

Receivables - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivable with Imputed Interest, Effective Yield (Interest Rate)	4.25%
Debt Instrument, Frequency of Periodic Payment	$22,000
Receivable with Imputed Interest, Face Amount	$ 1,100,000
Notes receivable	575,000	$ 730,000
Accounts and Notes Receivable, Net	500,000	$ 700,000
Friendswood TRS [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 95,000

Related Party Transactions - Re

Related Party Transactions - Receivables and Reserves (Details) - Cornerstone Realty Advisors, LLC [Member]	Dec. 31, 2019USD ($)
Receivables	$ 2,676,000
Reserves	(2,676,000)
Balance	0
Organizational and offering costs [Member]
Receivables	738,000
Reserves	(738,000)
Balance	0
Asset management fees and expenses [Member]
Receivables	32,000
Reserves	(32,000)
Balance	0
Operating expenses (direct and indirect) [Member]
Receivables	189,000
Reserves	(189,000)
Balance	0
Operating expenses (2%/25% Test) [Member]
Receivables	1,717,000
Reserves	(1,717,000)
Balance	$ 0

Related Party Transactions Addi

Related Party Transactions Additional Information (Details)	12 Months Ended
	Dec. 31, 2019
Minimum [Member]
Related Party Transaction [Line Items]
Percentage Of Restricted Operating Expenses	2.00%
Maximum [Member]
Related Party Transaction [Line Items]
Percentage Of Restricted Operating Expenses	25.00%

Concentration of Risk (Details)

Concentration of Risk (Details) - item	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Concentration Risk [Line Items]
Number of leased real estate properties		11
Number of tenants	5
Number of tenants had rental revenue greater than 10%	4	4
Number of tenants that constitutes significant asset concentration	1	1
Number of properties made up concentration, sold		4
Tenant One, Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	32.00%	41.00%
Tenant Two, Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	22.00%	23.00%
Tenant Three, Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	18.00%	17.00%
Tenant Four Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	14.00%	13.00%
Assets, Total [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	20.00%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	Mar. 14, 2019	Dec. 21, 2017	Dec. 31, 2019
consulting fees		$ 270,000
Payments for Repurchase of Equity			$ 900,000
Loss Contingency, Damages Sought, Value	$ 588,672
Alleged agreement [Member]
consulting fees		$ 10,000

Equity - Black-Scholes option-p

Equity - Black-Scholes option-pricing model (Details)	12 Months Ended
	Dec. 31, 2019$ / sharesshares
Equity
Stock options granted | shares	605,000
Expected volatility	21.75%
Expected term	5 years 6 months
Risk-free interest rate	2.38%
Dividend yield	0.00%
Fair value per share | $ / shares	$ 0.58

Equity - Stock options (Details

Equity - Stock options (Details)	12 Months Ended
	Dec. 31, 2019USD ($)$ / sharesshares
Equity
Options outstanding, Beginning Balance	1,230,908
Granted	605,000
Exercised	0
Cancelled/forfeited	(9,000)
Options outstanding, Ending Balance	1,826,908
Options exercisable, Ending Balance	1,444,624
Weighted Average Exercise Price, Outstanding at Beginning Balance | $ / shares	$ 1.99
Weighted Average Exercise Price, Granted | $ / shares	2.26
Weighted Average Exercise Price, Cancelled/forfeited | $ / shares	2.17
Weighted Average Exercise Price, Outstanding at Ending Balance | $ / shares	2.09
Weighted Average Exercise Price, Exercisable at Ending Balance | $ / shares	$ 2.04
Options outstanding, Weighted Average Remaining Contractual Term	7 years 9 months 4 days
Options exercisable, Weighted Average Remaining Contractual Term	7 years 5 months 9 days
Options outstanding, Aggregate Intrinsic Value | $	$ 1,349,000
Options exercisable, Aggregate Intrinsic Value | $	$ 1,133,000

Equity - Unrecognized stock-bas

Equity - Unrecognized stock-based compensation expense (Details)	Dec. 31, 2019USD ($)
Schedule of Equity Method Investments [Line Items]
Unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures	$ 208,000
2020 [Member]
Schedule of Equity Method Investments [Line Items]
Unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures	144,000
2021 [Member]
Schedule of Equity Method Investments [Line Items]
Unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures	58,000
2022 [Member]
Schedule of Equity Method Investments [Line Items]
Unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures	$ 6,000

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	Apr. 01, 2019	Mar. 20, 2019	Jan. 01, 2019	Nov. 30, 2018	Dec. 31, 2019	Dec. 31, 2018
Schedule of Equity [Line Items]
Granted					605,000
Common stock, shares authorized					290,000,000	290,000,000
Common stock, par value (in dollars per share)					$ 0.001	$ 0.001
Preferred Stock, Shares Authorized					10,000,000	10,000,000
Preferred Stock, Par or Stated Value Per Share					$ 0.001	$ 0.001
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 0.58
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term					7 years 9 months 4 days
Dividends Payable					$ 1,500,000
Dividends Payable, Date of Record				Jan. 15, 2019
Dividends Payable, Date to be Paid				Jan. 31, 2019
General and Administrative Expense [Member]
Schedule of Equity [Line Items]
Allocated Share-based Compensation Expense					$ 234,000	$ 100,000
Executive Officer One Member [Member]
Schedule of Equity [Line Items]
Granted		225,000
Share-based Payment Arrangement, Employee [Member]
Schedule of Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 0.54
Omnibus Incentive Plan [Member]
Schedule of Equity [Line Items]
Granted		450,000	45,000
Common Stock, Capital Shares Reserved for Future Issuance					1,173,092
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 0.61
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			10 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant					3,000,000
Omnibus Incentive Plan [Member] | Executive Management [Member]
Schedule of Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 0.57
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	67.00%	33.00%
Omnibus Incentive Plan [Member] | Share-based Payment Arrangement, Employee [Member]
Schedule of Equity [Line Items]
Granted		110,000
Incentive Plan [Member]
Schedule of Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Incentive Plan [Member] | Director [Member]
Schedule of Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 0.60
Director Incentive Stock Plan [Member]
Schedule of Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term		10 years

Dispositions (Details)

Dispositions (Details) - USD ($)	1 Months Ended		12 Months Ended
	Feb. 14, 2019	Jan. 31, 2018	Dec. 31, 2019	Feb. 15, 2019	Dec. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (Loss) on Disposition of Real Estate, Discontinued Operations		$ 109,000
Equity Method Investment, Ownership Percentage			10.00%
Proceeds from Divestiture of Businesses	$ 27,000,000
Transaction Costs Related To Prepayment Penalty	$ 1,200,000
Liabilities			$ 48,745,000		$ 69,159,000
HPShelby LLC [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Equity Method Investment, Ownership Percentage	95.00%
North Carolina Properties [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (Loss) on Disposition of Real Estate, Discontinued Operations			$ 4,300,000
Property, Plant and Equipment, Net				$ 22,100,000
Liabilities				19,500,000
Loan payable disposition of properties				$ 19,400,000

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Income (loss) from continuing operations	$ 3,030,000	$ (975,000)
Income (loss) from continuing operations attributable to noncontrolling interest	83,000	(50,000)
Income (loss) applicable to common stockholders, before discontinued operations	3,113,000	(1,025,000)
Income from discontinued operations	0	109,000
Net income (loss) applicable to common stockholders	$ 3,113,000	$ (916,000)
Basic:
Denominator for basic EPS - weighted average shares	23,027,978	23,027,978
Effect of dilutive shares:
Stock options	478,500	0
Denominator for diluted EPS - adjusted weighted average shares	23,506,478	23,027,978
Basic EPS	$ 0.14	$ (0.04)
Diluted EPS	0.13	(0.04)
Basic and diluted EPS for income from discontinued operations	$ 0	$ 0

Subsequent Events (Details)

Subsequent Events (Details) - shares	Jan. 01, 2020	Dec. 31, 2019
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		605,000
Incentive Plan [Member] | Share-based Payment Arrangement, Employee [Member]
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	45,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years