Summit Healthcare REIT 10-Q 13 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 07, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Registrant Name	Summit Healthcare REIT, Inc
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Central Index Key	0001310383
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		23,027,978
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Small Business	true

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 14,860,000	$ 13,260,000
Restricted cash	2,977,000	2,817,000
Real estate properties, net	45,718,000	46,513,000
Notes receivable	389,000	575,000
Tenant and other receivables, net	3,855,000	3,812,000
Deferred leasing commissions, net	571,000	607,000
Other assets, net	454,000	594,000
Equity-method investments	12,329,000	13,131,000
Total assets	81,153,000	81,309,000
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities	2,375,000	2,504,000
Security deposits	664,000	664,000
Loans payable, net of debt issuance costs	45,761,000	45,577,000
Total liabilities	48,800,000	48,745,000
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding at June 30, 2020 and December 31, 2019	0	0
Common stock, $0.001 par value; 290,000,000 shares authorized; 23,027,978 shares issued and outstanding at June 30, 2020 and December 31, 2019	23,000	23,000
Additional paid-in capital	116,264,000	116,184,000
Accumulated deficit	(84,130,000)	(83,843,000)
Total stockholders' equity	32,157,000	32,364,000
Noncontrolling interests	196,000	200,000
Total equity	32,353,000	32,564,000
Total liabilities and equity	$ 81,153,000	$ 81,309,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
CONDENSED 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

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues:
Total rental revenues	$ 1,604,000	$ 1,595,000	$ 3,204,000	$ 3,674,000
Acquisition and asset management fees	292,000	326,000	618,000	536,000
Interest income from notes receivable	7,000	7,000	14,000	13,000
Total operating revenue	1,903,000	1,928,000	3,836,000	4,223,000
Expenses:
Property operating costs	213,000	207,000	470,000	501,000
General and administrative	848,000	1,442,000	1,787,000	2,717,000
Depreciation and amortization	418,000	417,000	835,000	916,000
Total operating expenses	1,479,000	2,066,000	3,092,000	4,134,000
Other operating income:
Gain on sale of real estate properties	0	58,000	0	4,205,000
Operating income (loss)	424,000	(80,000)	744,000	4,294,000
Income (loss) from equity-method investees	137,000	(100,000)	167,000	30,000
Other income	6,000	48,000	48,000	100,000
Interest expense	(630,000)	(625,000)	(1,223,000)	(1,381,000)
Net (loss) income	(63,000)	(757,000)	(264,000)	3,043,000
Noncontrolling interests' share in net (income) loss	(11,000)	(12,000)	(23,000)	111,000
Net (loss) income applicable to common stockholders	$ (74,000)	$ (769,000)	$ (287,000)	$ 3,154,000
Basic:
(Loss) income	$ 0	$ (0.03)	$ (0.01)	$ 0.14
Net (loss) income applicable to common stockholders	0	(0.03)	(0.01)	0.14
Diluted:
(Loss) income	0	(0.03)	(0.01)	0.13
Net (loss) income applicable to common stockholders	$ 0	$ (0.03)	$ (0.01)	$ 0.13
Weighted average shares used to calculate earnings per common share
Basic	23,027,978	23,027,978	23,027,978	23,027,978
Diluted	23,027,978	23,027,978	23,027,978	23,513,331

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total Stockholders' Equity [Member]	Noncontrolling Interests [Member]	Total
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	68,000	0	68,000	0	68,000
Distributions paid to noncontrolling interests	0	0	0	0	(13,000)	(13,000)
Net income (loss)	0	0	3,923,000	3,923,000	(123,000)	3,800,000
Balance at Mar. 31, 2019	$ 23,000	116,018,000	(83,033,000)	33,008,000	213,000	33,221,000
Balance (in shares) at Mar. 31, 2019	23,027,978
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
Net income (loss)						3,043,000
Balance at Jun. 30, 2019	$ 23,000	116,099,000	(83,802,000)	32,320,000	213,000	32,533,000
Balance (in shares) at Jun. 30, 2019	23,027,978
Balance at Mar. 31, 2019	$ 23,000	116,018,000	(83,033,000)	33,008,000	213,000	33,221,000
Balance (in shares) at Mar. 31, 2019	23,027,978
Stock-based compensation	$ 0	81,000	0	81,000	0	81,000
Distributions paid to noncontrolling interests	0	0	0	0	(12,000)	(12,000)
Net income (loss)	0	0	(769,000)	(769,000)	12,000	(757,000)
Balance at Jun. 30, 2019	$ 23,000	116,099,000	(83,802,000)	32,320,000	213,000	32,533,000
Balance (in shares) at Jun. 30, 2019	23,027,978
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
Stock-based compensation	$ 0	42,000	0	42,000	0	42,000
Distributions paid to noncontrolling interests	0	0	0	0	(12,000)	(12,000)
Net income (loss)	0	0	(213,000)	(213,000)	12,000	(201,000)
Balance at Mar. 31, 2020	$ 23,000	116,226,000	(84,056,000)	32,193,000	200,000	32,393,000
Balance (in shares) at Mar. 31, 2020	23,027,978
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
Net income (loss)						(264,000)
Balance at Jun. 30, 2020	$ 23,000	116,264,000	(84,130,000)	32,157,000	196,000	32,353,000
Balance (in shares) at Jun. 30, 2020	23,027,978
Balance at Mar. 31, 2020	$ 23,000	116,226,000	(84,056,000)	32,193,000	200,000	32,393,000
Balance (in shares) at Mar. 31, 2020	23,027,978
Stock-based compensation	$ 0	38,000	0	38,000	0	38,000
Distributions paid to noncontrolling interests	0	0	0	0	(15,000)	(15,000)
Net income (loss)	0	0	(74,000)	(74,000)	11,000	(63,000)
Balance at Jun. 30, 2020	$ 23,000	$ 116,264,000	$ (84,130,000)	$ 32,157,000	$ 196,000	$ 32,353,000
Balance (in shares) at Jun. 30, 2020	23,027,978

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net (loss) income	$ (264,000)	$ 3,043,000
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Amortization of debt issuance costs	55,000	68,000
Depreciation and amortization	835,000	916,000
Straight-line rents	(125,000)	(201,000)
Write-off of debt issuance costs	77,000	0
Stock-based compensation expense	80,000	149,000
Gain on sale of real estate properties	0	(4,205,000)
Income from equity-method investees	(167,000)	(30,000)
Change in operating assets and liabilities:
Tenant and other receivables, net	411,000	157,000
Other assets	93,000	(22,000)
Accounts payable and accrued liabilities	(85,000)	(64,000)
Net cash provided by (used in) operating activities	910,000	(189,000)
Cash flows from investing activities:
Proceeds from sale of real estate properties, net of transaction costs	0	24,783,000
Investment in equity-method investees	0	(4,960,000)
Distributions received from equity-method investees	640,000	306,000
Issuance of notes receivable	0	(197,000)
Payments from notes receivable	185,000	141,000
Net cash provided by investing activities	825,000	20,073,000
Cash flows from financing activities:
Proceeds from issuance of loans payable	11,863,000	3,872,000
Payments of loans payable	(11,155,000)	(22,577,000)
Distributions payable	0	(1,499,000)
Distributions paid to noncontrolling interests	(27,000)	(25,000)
Deferred financing costs	(656,000)	(210,000)
Net cash provided by (used in) financing activities	25,000	(20,439,000)
Net increase (decrease) in cash, cash equivalents and restricted cash	1,760,000	(555,000)
Cash, cash equivalents and restricted cash - beginning of period	16,077,000	14,956,000
Cash, cash equivalents and restricted cash - end of period	17,837,000	14,401,000
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 960,000	$ 1,249,000

Organization

Organization	6 Months Ended
	Jun. 30, 2020
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 condensed consolidated financial statements. Cornerstone Healthcare Partners LLC – Consolidated Joint Venture 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 June 30, 2020, we own a 95.3% interest in the four JV Properties, and CHREF owns a 4.7% interest. See Note 13 for the disposition of real estate properties in 2019 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 condensed consolidated financial statements and is accounted for under the equity-method. As of June 30, 2020 and December 31, 2019, 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 condensed consolidated financial statements and is accounted for under the equity-method. As of June 30, 2020 and December 31, 2019, 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 condensed consolidated financial statements and is accounted for under the equity-method. As of June 30, 2020 and December 31, 2019, 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 condensed consolidated financial statements and is accounted for under the equity-method. As of June 30, 2020 and December 31, 2019, 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 condensed consolidated financial statements and is accounted for under the equity-method. As of June 30, 2020 and December 31, 2019, 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 condensed consolidated financial statements and is accounted for under the equity-method. As of June 30, 2020 and 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, and as the operating member of the Indiana 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	6 Months Ended
	Jun. 30, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies For more information regarding our significant accounting policies and estimates, please refer to “Summary of Significant Accounting Policies” contained in the consolidated financial statements included in our Annual Report on Form 10‑K for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”) on March 25, 2020. There have been no material changes to our policies since that filing. The accompanying condensed consolidated balance sheet at December 31, 2019 has been derived from the audited consolidated financial statements at that date. We assume that users of these condensed consolidated financial statements have read or have access to the audited December 31, 2019 consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 25, 2020 and that the adequacy of additional disclosure needed for a fair presentation, except in regard to material contingencies, may be determined in that context. Accordingly, footnotes and other disclosures which would substantially duplicate those in the consolidated financial statements contained in our most recent Annual Report on Form 10-K for the year ended December 31, 2019 have been omitted in this report. Principles of Consolidation and Basis of Presentation The accompanying condensed 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 accompanying financial information reflects all adjustments, which are, in the opinion of management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Interim results of operations are not necessarily indicative of the results to be expected for the full year. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown on the condensed consolidated statements of cash flows. June 30, December 31, 2020 2019 Cash and cash equivalents $ 14,860,000 $ 13,260,000 Restricted cash 2,977,000 2,817,000 Total cash, cash equivalents, and restricted cash shown on the condensed consolidated statements of cash flows $ 17,837,000 $ 16,077,000 Recently Issued Accounting Pronouncements In January 2020, the Financial Accounting Standards Board issued Accounting Standard Update (“ASU”) 2020-01 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 ASU 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. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires that a financial asset (or a group of financial assets) measured at amortized cost basis be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The amendments in ASU 2016-13 are an improvement because they eliminate the probable initial recognition threshold under current GAAP and, instead, reflect an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. 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 ASU 2016-02, Leases, as amended by subsequent ASUs (“Topic 842”). In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2019-11”), which amends ASU 2016-13 to clarify or address stakeholders’ specific issues about certain aspects of ASU 2016-13. ASU 2016-13, ASU 2018-19 and ASU 2019-11 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. The Company adopted ASU 2016-13, ASU 2018-19 and ASU 2019-11 (collectively, “Topic 326”) on January 1, 2020. 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. Coronavirus (COVID-19) Since first being reported in December 2019, COVID-19 has spread globally, including to every state in the United States and more than 175 countries. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. The outbreak has led governments and other authorities around the world, including federal, state and local authorities in the United States, to impose measures intended to control its spread, including restrictions on freedom of movement and business operations such as travel bans, border closings, business closures, quarantines and shelter-in-place orders. The COVID-19 pandemic and measures to prevent its spread are expected to negatively impact senior housing and skilled nursing facilities in a number of ways, including but not limited to: · Decreased occupancy and increased operating costs for the Company’s tenants and borrowers, which may adversely impact their ability to make full and timely rental and debt payments to the Company. In some cases, the Company may have to restructure tenants’ long-term rent obligations and may not be able to do so on terms that are as favorable to the Company as those currently in place. Reduced or modified rental and debt amounts could result in the determination that the full amounts of the Company’s real estate properties and notes receivable are not recoverable, which could result in an impairment charge. · Decreased occupancy and increased operating costs for the Company’s Equity-Method Investments as they own senior housing and skilled nursing facilities which may negatively impact the operating results of these investments. In some cases, the Equity-Method Investments may have to restructure tenants’ long-term rent obligations and may not be able to do so on terms that are as favorable to the Equity-Method Investments as those currently in place. Prolonged deterioration in the operating results for these investments could result in the determination that the full amounts of the Company’s investments are not recoverable, which could result in an impairment charge. 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. While we have not seen a material impact on rental revenue from any of our consolidated properties or debt payments from borrowers on notes receivable, or the operating results of our Equity-Method Investments for the period ended June 30, 2020, we are currently working with one tenant to address a partial rent payment default as a result of a material decrease in occupancy at the facility due to COVID-19. Based upon need and request, the Company may provide rent relief, either in the form of a temporary rent reduction to be paid back over time or permanent abatement of rent for a specific time period. Additionally, some of our Equity-Method Investment tenants have also experienced decreased occupancy and increased operating costs related to COVID-19, however, this has not had a material effect on our condensed consolidated financial statements. 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, including recording impairments, lease modifications and credit losses associated with notes receivable in future periods. CARES Act On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act is a stimulus package that provides various forms of relief through, among other things, grants, loans and tax incentives to certain businesses and individuals. In particular, the CARES Act created an emergency lending facility known as the Paycheck Protection Program (PPP), which is administered by the Small Business Administration (SBA) and provides federally insured and, in some cases, forgivable loans to certain, eligible businesses so that those businesses can continue to cover certain of their near-term operating expenses and retain employees. We did not obtain a PPP loan. We have evaluated the CARES Act and determined that there was no impact on the Company for the six months ended June 30, 2020. We will continue to evaluate and monitor the CARES Act, and any new COVID-19-related legislation to determine the ultimate impact and benefits, if any, to the Company.

Investments in Real Estate Prop

Investments in Real Estate Properties	6 Months Ended
	Jun. 30, 2020
Investments in Real Estate Properties
Investments in Real Estate Properties	3. Investments in Real Estate Properties As of June 30, 2020 and December 31, 2019, our investments in real estate properties including those held by our consolidated subsidiaries (excluding the 50 properties owned by our unconsolidated Equity-Method Investments) are set forth below: June 30, December 31, 2020 2019 Land $ 6,237,000 $ 6,237,000 Buildings and improvements 48,295,000 48,295,000 Less: accumulated depreciation (9,148,000) (8,444,000) Buildings and improvements, net 39,147,000 39,851,000 Furniture and fixtures 4,230,000 4,230,000 Less: accumulated depreciation (3,896,000) (3,805,000) Furniture and fixtures, net 334,000 425,000 Real estate properties, net $ 45,718,000 $ 46,513,000 For the three months ended June 30, 2020 and 2019, depreciation expense (excluding leasing commission amortization) was approximately $0.4 million and $0.4 million, respectively. For the six months ended June 30, 2020 and 2019, depreciation expense (excluding leasing commission amortization) was approximately $0.8 million and $0.9 million, respectively . As of June 30, 2020, our portfolio consisted of seven real estate properties which were 100% leased to the tenants of the related facilities. See Note 13 for further information regarding the February 2019 disposition of our four properties located in North Carolina. The following table provides summary information regarding our portfolio (excluding the 50 properties owned by our unconsolidated Equity-Method Investments) as of June 30, 2020: Loans Payable, Excluding Debt Purchase Issuance Property Location Date Purchased Type (1) Price Costs Sheridan Care Center Sheridan, OR August 3, 2012 SNF $ 4,100,000 $ 4,408,000 Fernhill Care Center Portland, OR August 3, 2012 SNF 4,500,000 3,867,000 Friendship Haven Healthcare and Rehabilitation Center Galveston County, TX September 14, 2012 SNF 15,000,000 11,847,000 Pacific Health and Rehabilitation Center Tigard, OR December 24, 2012 SNF 8,140,000 6,446,000 Brookstone of Aledo Aledo, IL July 2, 2013 AL 8,625,000 6,922,000 Sundial Assisted Living Redding, CA December 18, 2013 AL 3,500,000 3,818,000 Pennington Gardens Chandler, AZ July 17, 2017 AL/MC 13,400,000 10,403,000 Total: $ 57,265,000 $ 47,711,000 (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 our existing tenant operating leases (excluding the 50 properties owned by our unconsolidated Equity-Method Investments) as of June 30, 2020, for the period from July 1, 2020 to December 31, 2020 and for each of the four following years and thereafter ending December 31 are as follows: Years ending July 1, 2020 to December 31, 2020 $ 2,712,000 2021 5,511,000 2022 5,626,000 2023 5,742,000 2024 5,441,000 Thereafter 28,890,000 $ 53,922,000 2020 Acquisitions None. 2019 Acquisitions None. Leasing Commissions As a self-managed REIT, we no longer pay leasing commissions. Leasing commissions are capitalized at cost and amortized on a straight-line basis over the related lease term. As of June 30, 2020 and December 31, 2019, total costs incurred were $1.1 million, and the unamortized balance of capitalized leasing commissions was approximately $0.6 million. Amortization expense for the three months ended June 30, 2020 and 2019 was approximately $18,000 and $16,000, respectively. Amortization expense for the six months ended June 30, 2020 and 2019 was approximately $35,000 and $16,000, respectively.

Loans Payable

Loans Payable	6 Months Ended
	Jun. 30, 2020
Loans Payable
Loans Payable	4. Loans Payable As of June 30, 2020 and December 31, 2019, our loans payable consisted of the following: June 30, 2020 December 31, 2019 Loan payable to CIBC Bank USA refinanced in April 2020 and as of December 31, 2019, collateralized by Friendship Haven. $ — $ 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. $ 10,403,000 $ 10,473,000 Loans payable to ORIX (insured by HUD) in monthly installments of approximately $183,000, including interest, ranging from a fixed rate of 2.79% to 4.2%, due in September 2039 through April 2055, and as of June 30, 2020, collateralized by Sheridan, Fernhill, Pacific Health, Aledo, Sundial Assisted Living and Friendship Haven. As of December 31, 2019, collateralized by Sheridan, Fernhill, Pacific Health, Aledo and Sundial Assisted Living. $ 37,308,000 $ 25,804,000 47,711,000 47,002,000 Less debt issuance costs (1,950,000) (1,425,000) Total loans payable $ 45,761,000 $ 45,577,000 As of June 30, 2020, we have total debt obligations of approximately $47.7 million that will mature between 2021 and 2055. See Note 3 for loans payable balance for each property. In connection with our loans payable, we incurred debt issuance costs. As of June 30, 2020 and December 31, 2019, the unamortized balance of the debt issuance costs was approximately $1.9 million and $1.4 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 three months ended June 30, 2020 and 2019, $98,000 and $33,000, respectively, of debt issuance costs were amortized and included in interest expense in our condensed consolidated statements of operations. For the six months ended June 30, 2020 and 2019, $132,000 and $68,000, respectively, of debt issuance costs were amortized and included in interest expense in our condensed consolidated statements of operations. Included in the amortization of debt issuance costs for the three and six months ended June 30, 2020 is $77,000 related to the write off of debt issuance costs for CHP Friendswood SNF, LLC’s prior loan. During the three months ended June 30, 2020 and 2019, we incurred approximately $0.5 million and $0.6 million, respectively, of interest expense (excluding debt issuance costs amortization) related to our loans payable. During the six months ended June 30, 2020 and 2019, we incurred approximately $1.1 million and $1.3 million, respectively, of interest expense (excluding debt issuance costs amortization) related to our loans payable. The principal payments due on the loans payable (excluding debt issuance costs) for the period from July 1, 2020 to December 31, 2020 and for each of the four following years and thereafter ending December 31 are as follows: Principal Years Ending Amount July 1, 2020 to December 31, 2020 $ 523,000 2021 1,076,000 2022 1,116,000 2023 1,158,000 2024 1,201,000 Thereafter 42,637,000 $ 47,711,000 The following information describes our loan activity for 2020 and 2019: CIBC Bank USA In March 2019, CHP Friendswood SNF, LLC entered into a $10,725,000, three-year term loan and security agreement with CIBC Bank USA, which was collateralized by the Friendship Haven facility. On April 23, 2020, we refinanced the existing CIBC loan with an ORIX Real Estate Capital, LLC (“ORIX”) HUD-insured loan. See below under ORIX Real Estate Capital, LLC for further information Capital One Multifamily Finance, LLC In September 2019, we refinanced our Capital One loan and entered into a HUD-insured loan with Capital One Multifamily Finance, LLC which is collateralized by the Pennington Gardens facility. 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. ORIX Real Estate Capital, LLC We have several properties with HUD-insured loans from ORIX. See table above listing loans payable for further information. On April 23, 2020, we refinanced our outstanding $10,725,000 loan payable for CHP Friendswood, LLC with a HUD-insured loan through ORIX. The loan bears interest at a fixed rate of 2.79%, plus 0.65% for mortgage insurance premiums for the term of the loan and is collateralized by Friendship Haven. The loan matures in April 2055 and amortizes over 35 years. The loan proceeds of approximately $11.9 million were used to pay down the outstanding loan balance of approximately $10.8 million to CIBC, to fund certain HUD reserves and to pay debt issuance costs of approximately $0.7 million. 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. In April 2019, we entered into the HUD-insured loan through ORIX of approximately $3.8 million, 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 $0.2 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. 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 condensed consolidated balance sheets. As of June 30, 2020, we were in compliance with all of our debt covenants.

Equity-Method Investments

Equity-Method Investments	6 Months Ended
	Jun. 30, 2020
Equity-Method Investments
Equity-Method Investments	5. Equity-Method Investments As of June 30, 2020 and December 31, 2019, the balances of our Equity-Method Investments were approximately $12.3 million and $13.1 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. As of June 30, 2020 and December 31, 2019, the receivable balance of $184,000 due from the JV 2 properties is included in tenant and other receivables in our condensed consolidated balance sheets. As of June 30, 2020 and December 31, 2019, the balance of our equity-method investment related to the SUL JV was approximately $3.0 million and $3.1 million, respectively. Our equity-method investment in the SUL JV is considered a significant investee as our proportionate share of its income is greater than 20% of our total net loss. The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue $ 4,600,000 $ 4,612,000 $ 9,150,000 $ 8,978,000 Net operating income $ 3,420,000 $ 3,775,000 $ 6,741,000 $ 7,181,000 Income from operations $ 1,978,000 $ 2,231,000 $ 3,856,000 $ 4,105,000 Net income $ 741,000 $ 584,000 $ 1,696,000 $ 1,015,000 Summit equity interest in SUL JV net income $ 74,000 $ 55,000 $ 169,000 $ 98,000 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”). Under the Fantasia LLC Agreement, as amended in April 2019, 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 June 30, 2020 and December 31, 2019, the balance of our equity-method investment related to the Fantasia JV was approximately $2.0 million and $2.1 million, respectively. Our equity-method investment in the Fantasia JV is considered a significant investee. The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue $ 1,022,000 $ 610,000 $ 2,074,000 $ 1,111,000 Net operating income $ 284,000 $ 314,000 $ 639,000 $ 749,000 Income from operations $ 116,000 $ 145,000 $ 304,000 $ 389,000 Net loss $ (57,000) $ (275,000) $ (78,000) $ (279,000) Summit equity interest in Fantasia JV net loss $ (20,000) $ (95,000) $ (28,000) $ (96,000) 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 June 30, 2020 and December 31, 2019, the balance of our equity-method investment related to the Fantasia II JV was approximately $1.5 million and $1.5 million, respectively. Our equity-method investment in the Fantasia II JV is considered a significant investee as our proportionate share of its income is greater than 20% of our total net loss. The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue $ 890,000 $ 878,000 $ 1,782,000 $ 1,757,000 Net operating income $ 714,000 $ 713,000 $ 1,429,000 $ 1,427,000 Income from operations $ 484,000 $ 481,000 $ 991,000 $ 963,000 Net income $ 242,000 $ 234,000 $ 508,000 $ 470,000 Summit equity interest in Fantasia II JV net income $ 48,000 $ 47,000 $ 102,000 $ 94,000 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 June 30, 2020 and December 31, 2019, the balance of our equity-method investment related to the Fantasia III JV was approximately $1.6 million and $1.6 million, respectively. Our equity-method investment in the Fantasia III JV is considered a significant investee as our proportionate share of its income is greater than 20% of our total loss. The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue $ 2,000,000 $ 1,977,000 $ 4,000,000 $ 3,954,000 Net operating income $ 1,474,000 $ 1,470,000 $ 2,953,000 $ 2,946,000 Income from operations $ 1,104,000 $ 1,025,000 $ 2,141,000 $ 2,056,000 Net income $ 566,000 $ 301,000 $ 966,000 $ 604,000 Summit equity interest in Fantasia III JV net income $ 57,000 $ 30,000 $ 97,000 $ 60,000 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 June 30, 2020 and December 31, 2019, the balance of our equity-method investment related to the FPH JV was approximately $0.3 million and $0.5 million, respectively. Our equity-method investment in the FPH JV is considered a significant investee as our proportionate share of its net loss is greater than 20% of our total net loss. The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue $ 886,000 $ 896,000 $ 1,771,000 $ 1,790,000 Net operating income $ 761,000 $ 760,000 $ 1,524,000 $ 1,520,000 Income from operations $ 418,000 $ 414,000 $ 839,000 $ 829,000 Net loss $ (51,000) $ (969,000) $ (1,405,000) $ (927,000) Summit equity interest in FPH JV net loss $ (5,000) $ (97,000) $ (140,000) $ (93,000) Indiana JV 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 June 30, 2020 and December 31, 2019, the balance of our equity-method investment related to the Indiana JV was approximately $3.9 million and $4.3 million, respectively. Our equity-method investment in the Indiana JV is considered a significant investee as our proportionate share of its assets are greater than 20% of our total assets as of December 31, 2019. The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Total revenue $ 2,946,000 $ 2,810,000 $ 5,893,000 $ 3,570,000 Net operating income $ 2,941,000 $ 2,797,000 $ 5,885,000 $ 3,557,000 Income from operations $ 1,854,000 $ 1,821,000 $ 3,722,000 $ 2,297,000 Net loss $ (117,000) $ (265,000) $ (221,000) $ (218,000) Summit equity interest in Indiana JV net loss $ (5,000) $ (97,000) $ (140,000) $ (93,000) Distributions from Equity-Method Investments As of June 30, 2020 and December 31, 2019, we have distributions receivable from our Equity-Method Investments, which is included in tenant and other receivables in our condensed consolidated balance sheets, as follows: June 30, December 31, 2020 2019 SUL JV $ 165,000 $ 97,000 Fantasia JV 36,000 180,000 Fantasia II JV 51,000 48,000 Fantasia III JV 115,000 117,000 FPH JV 22,000 39,000 Indiana JV 243,000 162,000 Total $ 632,000 $ 643,000 For the six months ended June 30, 2020 and 2019, we have received cash distributions, which are included in our cash flows from operating activities in tenant and other receivables, and cash flows from investing activities, as follows: Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Cash Flow Cash Flow Cash Flow Cash Flow Total Cash from from Total Cash from from Distributions Operating Investing Distributions Operating Investing Received Activities Activities Received Activities Activities SUL JV $ 235,000 $ 169,000 $ 66,000 $ 223,000 $ 98,000 $ 125,000 Fantasia JV 144,000 — 144,000 — — — Fantasia II JV 147,000 101,000 46,000 144,000 94,000 50,000 Fantasia III JV 69,000 69,000 — 78,000 60,000 18,000 FPH JV 84,000 — 84,000 39,000 5,000 34,000 Indiana JV 300,000 — 300,000 79,000 — 79,000 Total $ 979,000 $ 339,000 $ 640,000 $ 563,000 $ 257,000 $ 306,000 Acquisition and Asset Management Fees We serve as the manager or operating member of our Equity-Method Investments and provide management services in exchange for fees and reimbursements. As the manager or operating member, we are paid an acquisition fee, as defined in the applicable joint venture agreements. Additionally, as the manager or operating member, we are paid an annual asset management fee for managing the properties held by our Equity-Method Investments, as defined in the applicable joint venture agreements. For the three months ended June 30, 2020 and 2019, we recorded approximately $0.3 million and $0.3 million, respectively, in acquisition and asset management fees from our Equity-Method Investments. For the six months ended June 30, 2020 and 2019, we recorded approximately $0.6 million and $0.5 million, respectively, in acquisition and asset management fees from our Equity-Method Investments.

Receivables

Receivables	6 Months Ended
	Jun. 30, 2020
Receivables
Receivables	6. Receivables Notes Receivable Friendswood TRS Note The Operating Partnership entered into an amended and restated promissory note dated January 1, 2019, 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 June 30, 2020 and December 31, 2019, the balance on the note was approximately $0.4 million and $0.5 million, respectively. Tenant and Other Receivables, Net Tenant and other receivables, net consists of: June 30, December 31, 2020 2019 Straight-line rent receivables $ 2,671,000 $ 2,546,000 Distribution receivables from Equity-Method Investments 632,000 643,000 Receivable from JV 2 properties 184,000 184,000 Asset management fees 322,000 430,000 Other receivables 46,000 9,000 Total $ 3,855,000 $ 3,812,000 The allowance for credit losses on accounts receivable is maintained at a level believed adequate to absorb potential losses in our receivables. The determination of the credit allowance is based on a quarterly evaluation of each of these receivables, including general economic conditions and estimated collectability. We evaluate the collectability of our receivables based on a combination of credit quality indicators, including, but not limited to, payment status, historical charge-offs, and financial strength of the lessee or equity method investment. A receivable is considered to have deteriorated in credit quality when, based on current information and events, it is probable that we will be unable to collect all amounts due. As of June 30, 2020, the allowance for credit losses is immaterial.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2020
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 September 30, 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 June 30, 2020 and December 31, 2019, the receivables from CRA are fully reserved due to the uncertainty of collectability and are included in tenant and other receivables in our condensed consolidated balance sheets (see Note 10). As of June 30, 2020 and December 31, 2019, we had the following receivables and reserves related to CRA: 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 Notes 5 and 6 for further discussion of distributions and acquisition and asset management fees related to our Equity-Method Investments.

Concentration of Risk

Concentration of Risk	6 Months Ended
	Jun. 30, 2020
Concentration of Risk
Concentration of Risk	8. Concentration of Risk Our cash is generally invested in short-term money market instruments. As of June 30, 2020, we had cash and cash equivalent accounts in excess of FDIC-insured limits. However, we do not believe the risk associated with this excess is significant. As of June 30, 2020, 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, for the three months ended June 30, 2020, we leased our seven real estate properties to five different tenants under long-term triple net leases, and four of the five tenants each represented rental revenue greater than 10% (35%, 24%, 19% and 15%). For the three months ended June 30, 2019, we leased our seven real estate properties to five different tenants under long-term triple net leases, and four of the five tenants each represented rental revenue greater than 10% (35%, 24%, 19% and 15%). For the six months ended June 30, 2020, we leased our seven real estate properties to five different tenants under long-term triple net leases, and four of the five tenants each represented rental revenue greater than 10% (35%, 24%, 20% and 15)%. For the six months ended June 30, 2019, we leased our seven healthcare properties to five different tenants under long-term triple net leases, and four of the five tenants each represented rental revenue greater than 10% (35%, 24%, 19% and 15)%. As of June 30, 2020, we have one tenant that constitutes a significant asset concentration, as the net assets of the tenant are approximately 20% of our total assets.

Fair Value Measurements of Fina

Fair Value Measurements of Financial Instruments	6 Months Ended
	Jun. 30, 2020
Fair Value Measurements of Financial Instruments
Fair Value Measurements of Financial Instruments	9. Fair Value Measurements of Financial Instruments Our condensed consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, notes receivable, tenant and other receivables, certain other assets, accounts payable and accrued liabilities, security deposits and loans payable. With the exception of the 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 June 30, 2020 and December 31, 2019, the fair value of loans payable was $53.3 million and $47.4 million, compared to the principal balance (excluding debt discount) of $47.7 million and $47.0 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 June 30, 2020, we utilized discount rates ranging from 2.8% to 4.2% and a weighted average discount rate of 2.8%. As the inputs to our valuation estimate are neither observable in nor supported by market activity, our loans payable are classified as Level 3 liability within the fair value hierarchy. As a result of our ongoing analysis for potential impairment of our investments in real estate, we may be required to adjust the carrying value of certain assets to their estimated fair values, or estimated fair value less selling costs, under certain circumstances. No impairments were recorded during the three and six months ended June 30, 2020 and 2019. At June 30, 2020 and December 31, 2019, we do not have any financial assets or financial liabilities that are measured at fair value on a recurring basis in our condensed consolidated financial statements.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies
Commitments and Contingencies	10. 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. Legal Proceedings 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 briefing to the Court of Appeal, Fourth District on the Company’s appeals against CRA, Cornerstone Ventures, Inc and Winget Spadafora & Schwartzberg was completed on April 27, 2020, and on April 28, 2020, the Company filed its request for oral argument on its appeals. 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. 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	6 Months Ended
	Jun. 30, 2020
Equity
Equity	11. Equity Share-Based Compensation Plan 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 by 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 with maturity dates approximating the expected term 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. On January 1, 2020, 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, 2020 and continuing over a three-year period through January 1, 2023. The options expire 10 years from the grant date. The weighted-average fair value per share of the stock options granted was $0.57. The estimated fair value using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 Stock options granted 45,000 Expected volatility 22.31 % Expected term years Risk-free interest rate 1.72 % Dividend yield — % Fair value per share $ 0.57 The following table summarizes our stock options as of June 30, 2020: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Options outstanding at January 1, 2020 1,826,908 $ 2.09 Granted 45,000 2.26 Exercised — Cancelled/forfeited — Options outstanding at June 30, 2020 1,871,908 $ 2.09 7.32 $ 1,375,000 Options exercisable at June 30, 2020 1,599,083 $ 2.06 7.08 $ 1,221,000 For our outstanding non-vested options as of June 30, 2020, the weighted average grant date fair value per share was $0.56. As of June 30, 2020, we have unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures, which is expected to be recognized as follows: Years Ending December 31, July 1, 2020 to December 31, 2020 $ 71,000 2021 66,000 2022 15,000 2022 1,000 $ 153,000 The stock-based compensation expense reported for the three months ended June 30, 2020 and 2019 was approximately $38,000 and $81,000, respectively, and is included in general and administrative expense in the condensed consolidated statements of operations. The stock-based compensation expense reported for the six months ended June 30, 2020 and 2019 was approximately $80,000 and $149,000, respectively, and is included in general and administrative expense in the condensed consolidated statements of operations.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2020
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 three and six months ended June 30, 2020 and 2019, 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: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Numerator: (Loss) income $ (63,000) $ (757,000) $ (264,000) $ 3,043,000 Income (loss) attributable to noncontrolling interest (11,000) (12,000) (23,000) 111,000 Net (loss) income applicable to common stockholders $ (74,000) $ (769,000) $ (287,000) $ 3,154,000 Denominator: Basic: Denominator for basic EPS - weighted average shares 23,027,978 23,027,978 23,027,978 23,027,978 Effect of dilutive shares: Stock options — — — 485,353 Denominator for diluted EPS – adjusted weighted average shares 23,027,978 23,027,978 23,027,978 23,513,331 Basic EPS $ $ (0.03) $ (0.01) $ 0.14 Diluted EPS $ $ (0.03) $ (0.01) $ 0.13

Dispositions

Dispositions	6 Months Ended
	Jun. 30, 2020
Dispositions
Dispositions	13. Dispositions 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, sold to Agemark Acquisition, LLC 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 that sale 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 on 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 condensed consolidated financial statements. During the period ended June 30, 2019, we recorded a gain of approximately $4.2 million on the sale of the NC Properties.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The accompanying condensed 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 accompanying financial information reflects all adjustments, which are, in the opinion of management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Interim results of operations are not necessarily indicative of the results to be expected for the full year. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020.
Restricted Cash	Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown on the condensed consolidated statements of cash flows. June 30, December 31, 2020 2019 Cash and cash equivalents $ 14,860,000 $ 13,260,000 Restricted cash 2,977,000 2,817,000 Total cash, cash equivalents, and restricted cash shown on the condensed consolidated statements of cash flows $ 17,837,000 $ 16,077,000
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In January 2020, the Financial Accounting Standards Board issued Accounting Standard Update (“ASU”) 2020-01 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 ASU 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. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires that a financial asset (or a group of financial assets) measured at amortized cost basis be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The amendments in ASU 2016-13 are an improvement because they eliminate the probable initial recognition threshold under current GAAP and, instead, reflect an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. 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 ASU 2016-02, Leases, as amended by subsequent ASUs (“Topic 842”). In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2019-11”), which amends ASU 2016-13 to clarify or address stakeholders’ specific issues about certain aspects of ASU 2016-13. ASU 2016-13, ASU 2018-19 and ASU 2019-11 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. The Company adopted ASU 2016-13, ASU 2018-19 and ASU 2019-11 (collectively, “Topic 326”) on January 1, 2020. 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.
Coronavirus (COVID-19)	Coronavirus (COVID-19) Since first being reported in December 2019, COVID-19 has spread globally, including to every state in the United States and more than 175 countries. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. The outbreak has led governments and other authorities around the world, including federal, state and local authorities in the United States, to impose measures intended to control its spread, including restrictions on freedom of movement and business operations such as travel bans, border closings, business closures, quarantines and shelter-in-place orders. The COVID-19 pandemic and measures to prevent its spread are expected to negatively impact senior housing and skilled nursing facilities in a number of ways, including but not limited to: · Decreased occupancy and increased operating costs for the Company’s tenants and borrowers, which may adversely impact their ability to make full and timely rental and debt payments to the Company. In some cases, the Company may have to restructure tenants’ long-term rent obligations and may not be able to do so on terms that are as favorable to the Company as those currently in place. Reduced or modified rental and debt amounts could result in the determination that the full amounts of the Company’s real estate properties and notes receivable are not recoverable, which could result in an impairment charge. · Decreased occupancy and increased operating costs for the Company’s Equity-Method Investments as they own senior housing and skilled nursing facilities which may negatively impact the operating results of these investments. In some cases, the Equity-Method Investments may have to restructure tenants’ long-term rent obligations and may not be able to do so on terms that are as favorable to the Equity-Method Investments as those currently in place. Prolonged deterioration in the operating results for these investments could result in the determination that the full amounts of the Company’s investments are not recoverable, which could result in an impairment charge. 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. While we have not seen a material impact on rental revenue from any of our consolidated properties or debt payments from borrowers on notes receivable, or the operating results of our Equity-Method Investments for the period ended June 30, 2020, we are currently working with one tenant to address a partial rent payment default as a result of a material decrease in occupancy at the facility due to COVID-19. Based upon need and request, the Company may provide rent relief, either in the form of a temporary rent reduction to be paid back over time or permanent abatement of rent for a specific time period. Additionally, some of our Equity-Method Investment tenants have also experienced decreased occupancy and increased operating costs related to COVID-19, however, this has not had a material effect on our condensed consolidated financial statements. 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, including recording impairments, lease modifications and credit losses associated with notes receivable in future periods.
CARES Act	CARES Act On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act is a stimulus package that provides various forms of relief through, among other things, grants, loans and tax incentives to certain businesses and individuals. In particular, the CARES Act created an emergency lending facility known as the Paycheck Protection Program (PPP), which is administered by the Small Business Administration (SBA) and provides federally insured and, in some cases, forgivable loans to certain, eligible businesses so that those businesses can continue to cover certain of their near-term operating expenses and retain employees. We did not obtain a PPP loan. We have evaluated the CARES Act and determined that there was no impact on the Company for the six months ended June 30, 2020. We will continue to evaluate and monitor the CARES Act, and any new COVID-19-related legislation to determine the ultimate impact and benefits, if any, to the Company.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2020
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 condensed consolidated balance sheets that sum to the total of the same such amounts shown on the condensed consolidated statements of cash flows. June 30, December 31, 2020 2019 Cash and cash equivalents $ 14,860,000 $ 13,260,000 Restricted cash 2,977,000 2,817,000 Total cash, cash equivalents, and restricted cash shown on the condensed consolidated statements of cash flows $ 17,837,000 $ 16,077,000

Investments in Real Estate Pr_2

Investments in Real Estate Properties (Tables)	6 Months Ended
	Jun. 30, 2020
Investments in Real Estate Properties.
Schedule of business acquisitions, by acquisition	As of June 30, 2020 and December 31, 2019, our investments in real estate properties including those held by our consolidated subsidiaries (excluding the 50 properties owned by our unconsolidated Equity-Method Investments) are set forth below: June 30, December 31, 2020 2019 Land $ 6,237,000 $ 6,237,000 Buildings and improvements 48,295,000 48,295,000 Less: accumulated depreciation (9,148,000) (8,444,000) Buildings and improvements, net 39,147,000 39,851,000 Furniture and fixtures 4,230,000 4,230,000 Less: accumulated depreciation (3,896,000) (3,805,000) Furniture and fixtures, net 334,000 425,000 Real estate properties, net $ 45,718,000 $ 46,513,000
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 June 30, 2020: Loans Payable, Excluding Debt Purchase Issuance Property Location Date Purchased Type (1) Price Costs Sheridan Care Center Sheridan, OR August 3, 2012 SNF $ 4,100,000 $ 4,408,000 Fernhill Care Center Portland, OR August 3, 2012 SNF 4,500,000 3,867,000 Friendship Haven Healthcare and Rehabilitation Center Galveston County, TX September 14, 2012 SNF 15,000,000 11,847,000 Pacific Health and Rehabilitation Center Tigard, OR December 24, 2012 SNF 8,140,000 6,446,000 Brookstone of Aledo Aledo, IL July 2, 2013 AL 8,625,000 6,922,000 Sundial Assisted Living Redding, CA December 18, 2013 AL 3,500,000 3,818,000 Pennington Gardens Chandler, AZ July 17, 2017 AL/MC 13,400,000 10,403,000 Total: $ 57,265,000 $ 47,711,000 (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 our existing tenant operating leases (excluding the 50 properties owned by our unconsolidated Equity-Method Investments) as of June 30, 2020, for the period from July 1, 2020 to December 31, 2020 and for each of the four following years and thereafter ending December 31 are as follows: Years ending July 1, 2020 to December 31, 2020 $ 2,712,000 2021 5,511,000 2022 5,626,000 2023 5,742,000 2024 5,441,000 Thereafter 28,890,000 $ 53,922,000

Loans Payable (Tables)

Loans Payable (Tables)	6 Months Ended
	Jun. 30, 2020
Loans Payable
Schedule of debt	As of June 30, 2020 and December 31, 2019, our loans payable consisted of the following: June 30, 2020 December 31, 2019 Loan payable to CIBC Bank USA refinanced in April 2020 and as of December 31, 2019, collateralized by Friendship Haven. $ — $ 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. $ 10,403,000 $ 10,473,000 Loans payable to ORIX (insured by HUD) in monthly installments of approximately $183,000, including interest, ranging from a fixed rate of 2.79% to 4.2%, due in September 2039 through April 2055, and as of June 30, 2020, collateralized by Sheridan, Fernhill, Pacific Health, Aledo, Sundial Assisted Living and Friendship Haven. As of December 31, 2019, collateralized by Sheridan, Fernhill, Pacific Health, Aledo and Sundial Assisted Living. $ 37,308,000 $ 25,804,000 47,711,000 47,002,000 Less debt issuance costs (1,950,000) (1,425,000) Total loans payable $ 45,761,000 $ 45,577,000
Schedule of maturities of long-term debt	The principal payments due on the loans payable (excluding debt issuance costs) for the period from July 1, 2020 to December 31, 2020 and for each of the four following years and thereafter ending December 31 are as follows: Principal Years Ending Amount July 1, 2020 to December 31, 2020 $ 523,000 2021 1,076,000 2022 1,116,000 2023 1,158,000 2024 1,201,000 Thereafter 42,637,000 $ 47,711,000

Equity-Method Investments (Tabl

Equity-Method Investments (Tables)	6 Months Ended
	Jun. 30, 2020
Schedule of Equity Method Investments [Line Items]
Schedule of Distributions receivable	As of June 30, 2020 and December 31, 2019, we have distributions receivable from our Equity-Method Investments, which is included in tenant and other receivables in our condensed consolidated balance sheets, as follows: June 30, December 31, 2020 2019 SUL JV $ 165,000 $ 97,000 Fantasia JV 36,000 180,000 Fantasia II JV 51,000 48,000 Fantasia III JV 115,000 117,000 FPH JV 22,000 39,000 Indiana JV 243,000 162,000 Total $ 632,000 $ 643,000
Schedule of Cash Distributions	For the six months ended June 30, 2020 and 2019, we have received cash distributions, which are included in our cash flows from operating activities in tenant and other receivables, and cash flows from investing activities, as follows: Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Cash Flow Cash Flow Cash Flow Cash Flow Total Cash from from Total Cash from from Distributions Operating Investing Distributions Operating Investing Received Activities Activities Received Activities Activities SUL JV $ 235,000 $ 169,000 $ 66,000 $ 223,000 $ 98,000 $ 125,000 Fantasia JV 144,000 — 144,000 — — — Fantasia II JV 147,000 101,000 46,000 144,000 94,000 50,000 Fantasia III JV 69,000 69,000 — 78,000 60,000 18,000 FPH JV 84,000 — 84,000 39,000 5,000 34,000 Indiana JV 300,000 — 300,000 79,000 — 79,000 Total $ 979,000 $ 339,000 $ 640,000 $ 563,000 $ 257,000 $ 306,000
SUL JV
Schedule of Equity Method Investments [Line Items]
Schedule of results of operations	The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue $ 4,600,000 $ 4,612,000 $ 9,150,000 $ 8,978,000 Net operating income $ 3,420,000 $ 3,775,000 $ 6,741,000 $ 7,181,000 Income from operations $ 1,978,000 $ 2,231,000 $ 3,856,000 $ 4,105,000 Net income $ 741,000 $ 584,000 $ 1,696,000 $ 1,015,000 Summit equity interest in SUL JV net income $ 74,000 $ 55,000 $ 169,000 $ 98,000
Fantasia JV
Schedule of Equity Method Investments [Line Items]
Schedule of results of operations	. The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue $ 1,022,000 $ 610,000 $ 2,074,000 $ 1,111,000 Net operating income $ 284,000 $ 314,000 $ 639,000 $ 749,000 Income from operations $ 116,000 $ 145,000 $ 304,000 $ 389,000 Net loss $ (57,000) $ (275,000) $ (78,000) $ (279,000) Summit equity interest in Fantasia JV net loss $ (20,000) $ (95,000) $ (28,000) $ (96,000)
Fantasia II JV
Schedule of Equity Method Investments [Line Items]
Schedule of results of operations	The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue $ 890,000 $ 878,000 $ 1,782,000 $ 1,757,000 Net operating income $ 714,000 $ 713,000 $ 1,429,000 $ 1,427,000 Income from operations $ 484,000 $ 481,000 $ 991,000 $ 963,000 Net income $ 242,000 $ 234,000 $ 508,000 $ 470,000 Summit equity interest in Fantasia II JV net income $ 48,000 $ 47,000 $ 102,000 $ 94,000
Fantasia III JV
Schedule of Equity Method Investments [Line Items]
Schedule of results of operations	The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue $ 2,000,000 $ 1,977,000 $ 4,000,000 $ 3,954,000 Net operating income $ 1,474,000 $ 1,470,000 $ 2,953,000 $ 2,946,000 Income from operations $ 1,104,000 $ 1,025,000 $ 2,141,000 $ 2,056,000 Net income $ 566,000 $ 301,000 $ 966,000 $ 604,000 Summit equity interest in Fantasia III JV net income $ 57,000 $ 30,000 $ 97,000 $ 60,000
FPH JV
Schedule of Equity Method Investments [Line Items]
Schedule of results of operations	The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue $ 886,000 $ 896,000 $ 1,771,000 $ 1,790,000 Net operating income $ 761,000 $ 760,000 $ 1,524,000 $ 1,520,000 Income from operations $ 418,000 $ 414,000 $ 839,000 $ 829,000 Net loss $ (51,000) $ (969,000) $ (1,405,000) $ (927,000) Summit equity interest in FPH JV net loss $ (5,000) $ (97,000) $ (140,000) $ (93,000)
Indiana JV
Schedule of Equity Method Investments [Line Items]
Schedule of results of operations	The results of operations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Total revenue $ 2,946,000 $ 2,810,000 $ 5,893,000 $ 3,570,000 Net operating income $ 2,941,000 $ 2,797,000 $ 5,885,000 $ 3,557,000 Income from operations $ 1,854,000 $ 1,821,000 $ 3,722,000 $ 2,297,000 Net loss $ (117,000) $ (265,000) $ (221,000) $ (218,000) Summit equity interest in Indiana JV net loss $ (5,000) $ (97,000) $ (140,000) $ (93,000)

Receivables (Tables)

Receivables (Tables)	6 Months Ended
	Jun. 30, 2020
Receivables
Schedule of tenant and other receivables	Tenant and other receivables, net consists of: June 30, December 31, 2020 2019 Straight-line rent receivables $ 2,671,000 $ 2,546,000 Distribution receivables from Equity-Method Investments 632,000 643,000 Receivable from JV 2 properties 184,000 184,000 Asset management fees 322,000 430,000 Other receivables 46,000 9,000 Total $ 3,855,000 $ 3,812,000 The allowance for credit losses on accounts receivable is maintained at a level believed adequate to absorb potential losses in our receivables. The determination of the credit allowance is based on a quarterly evaluation of each of these receivables, including general economic conditions and estimated collectability. We evaluate the collectability of our receivables based on a combination of credit quality indicators, including, but not limited to, payment status, historical charge-offs, and financial strength of the lessee or equity method investment. A receivable is considered to have deteriorated in credit quality when, based on current information and events, it is probable that we will be unable to collect all amounts due. As of June 30, 2020, the allowance for credit losses is immaterial.

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2020
Related Party Transactions
Schedule of Receivables and reserves related to CRA	As of June 30, 2020 and December 31, 2019, we had the following receivables and reserves related to CRA: 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)	6 Months Ended
	Jun. 30, 2020
Equity
Schedule of Estimated fair value using assumptions	The estimated fair value using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 Stock options granted 45,000 Expected volatility 22.31 % Expected term years Risk-free interest rate 1.72 % Dividend yield — % Fair value per share $ 0.57
Schedule of Stock options	The following table summarizes our stock options as of June 30, 2020: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Options outstanding at January 1, 2020 1,826,908 $ 2.09 Granted 45,000 2.26 Exercised — Cancelled/forfeited — Options outstanding at June 30, 2020 1,871,908 $ 2.09 7.32 $ 1,375,000 Options exercisable at June 30, 2020 1,599,083 $ 2.06 7.08 $ 1,221,000
Schedule of Unrecognized stock-based compensation expense	For our outstanding non-vested options as of June 30, 2020, the weighted average grant date fair value per share was $0.56. As of June 30, 2020, we have unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures, which is expected to be recognized as follows: Years Ending December 31, July 1, 2020 to December 31, 2020 $ 71,000 2021 66,000 2022 15,000 2022 1,000 $ 153,000

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2020
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 three and six months ended June 30, 2020 and 2019, 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: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Numerator: (Loss) income $ (63,000) $ (757,000) $ (264,000) $ 3,043,000 Income (loss) attributable to noncontrolling interest (11,000) (12,000) (23,000) 111,000 Net (loss) income applicable to common stockholders $ (74,000) $ (769,000) $ (287,000) $ 3,154,000 Denominator: Basic: Denominator for basic EPS - weighted average shares 23,027,978 23,027,978 23,027,978 23,027,978 Effect of dilutive shares: Stock options — — — 485,353 Denominator for diluted EPS – adjusted weighted average shares 23,027,978 23,027,978 23,027,978 23,513,331 Basic EPS $ $ (0.03) $ (0.01) $ 0.14 Diluted EPS $ $ (0.03) $ (0.01) $ 0.13

Organization (Details)

Organization (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
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]
Equity Method Investment, Ownership 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%
Fantasia III JV
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest by Affiliates	10.00%	10.00%
Fantasia II JV
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%	20.00%
Fantasia JV
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest	35.00%
Summit Fantasia Holdings, LLC
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest by Affiliates	35.00%	35.00%
Summit Fantasy Pearl Holdings, LLC- Equity-Method Investment
Organization [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest	10.00%	10.00%
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 ($)	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Summary of Significant Accounting Policies
Cash and cash equivalents	$ 14,860,000	$ 13,260,000
Restricted cash	2,977,000	2,817,000
Total cash, cash equivalents, and restricted cash shown on the consolidated statements of cash flows	$ 17,837,000	$ 16,077,000	$ 14,401,000	$ 14,956,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Additional information (Details)	Jun. 30, 2020
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%

Investments in Real Estate Pr_3

Investments in Real Estate Properties - Investments in real estate properties (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Real Estate Properties [Line Items]
Real estate properties, net	$ 45,718,000	$ 46,513,000
Land [Member]
Real Estate Properties [Line Items]
Real estate properties, net	6,237,000	6,237,000
Buildings and improvements [Member]
Real Estate Properties [Line Items]
Investments in real estate	48,295,000	48,295,000
Less: accumulated depreciation	(9,148,000)	(8,444,000)
Real estate properties, net	39,147,000	39,851,000
Furniture and fixtures [Member]
Real Estate Properties [Line Items]
Investments in real estate	4,230,000	4,230,000
Less: accumulated depreciation	(3,896,000)	(3,805,000)
Real estate properties, net	$ 334,000	$ 425,000

Investments in Real Estate Pr_4

Investments in Real Estate Properties - Summary information regarding portfolio (Details)	Jun. 30, 2020USD ($)
Real Estate Properties [Line Items]
Purchase Price	$ 57,265,000
Loans Payable, Excluding Debt Issuance Costs	47,711,000
Sheridan Care Center [Member]
Real Estate Properties [Line Items]
Purchase Price	4,100,000
Loans Payable, Excluding Debt Issuance Costs	4,408,000
Fernhill Care Center [Member]
Real Estate Properties [Line Items]
Purchase Price	4,500,000
Loans Payable, Excluding Debt Issuance Costs	3,867,000
Friendship Haven Healthcare and Rehabilitation Center [Member]
Real Estate Properties [Line Items]
Purchase Price	15,000,000
Loans Payable, Excluding Debt Issuance Costs	11,847,000
Pacific Health and Rehabilitation Center [Member]
Real Estate Properties [Line Items]
Purchase Price	8,140,000
Loans Payable, Excluding Debt Issuance Costs	6,446,000
Brookstone of Aledo [Member]
Real Estate Properties [Line Items]
Purchase Price	8,625,000
Loans Payable, Excluding Debt Issuance Costs	6,922,000
Sundial Assisted Living [Member]
Real Estate Properties [Line Items]
Purchase Price	3,500,000
Loans Payable, Excluding Debt Issuance Costs	3,818,000
Pennington Gardens [Member]
Real Estate Properties [Line Items]
Purchase Price	13,400,000
Loans Payable, Excluding Debt Issuance Costs	$ 10,403,000

Investments in Real Estate Pr_5

Investments in Real Estate Properties - Future Minimum Lease Payments (Details)	Jun. 30, 2020USD ($)
Investments in Real Estate Properties
July 1, 2020 to December 31, 2020	$ 2,712,000
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	$ 53,922,000

Investments in Real Estate Pr_6

Investments in Real Estate Properties - Additional information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Investments in Real Estate Properties
Percentage of Real Estate Properties			100.00%
Depreciation	$ 400,000	$ 400,000	$ 800,000	$ 900,000
Deferred Costs	1,100,000		1,100,000		$ 1,100,000
Amortization of Deferred Leasing Commissions	$ 18,000	$ 16,000	$ 35,000	$ 16,000

Loans Payable - Debt (Details)

Loans Payable - Debt (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 47,711,000	$ 47,002,000
Less debt issuance costs	(1,950,000)	(1,425,000)
Total loans payable	45,761,000	45,577,000
CIBC Bank [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	0	10,725,000
Capital One Multifamily Finance LLC [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	10,403,000	10,473,000
ORIX Real Estate Capital, LLC [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 37,308,000	$ 25,804,000

Loans Payable (Details) _Parent

Loans Payable (Details) [Parenthetical] - USD ($)	Apr. 23, 2020	Apr. 30, 2019	Jun. 30, 2020
Debt Instrument, Periodic Payment	$ 10,725,000
Debt Instrument, Description of Variable Rate Basis	100
Debt Instrument, Interest Rate, Stated Percentage	2.79%
Capital One Multifamily Finance LLC [Member]
Debt Instrument, Periodic Payment			$ 49,000
Debt Instrument, Interest Rate, Stated Percentage			4.23%
ORIX Real Estate Capital, LLC [Member]
Debt Instrument, Periodic Payment		$ 3,800,000	$ 183,000
Debt Instrument, Basis Spread on Variable Rate		100.00%
Debt Instrument, Interest Rate, Stated Percentage		4.20%
ORIX Real Estate Capital, LLC [Member] | Minimum [Member]
Debt Instrument, Interest Rate, Stated Percentage			2.79%
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)	Jun. 30, 2020USD ($)
Loans Payable
July 1, 2020 to December 31, 2020	$ 523,000
2021	1,076,000
2022	1,116,000
2023	1,158,000
2024	1,201,000
Thereafter	42,637,000
Total	$ 47,711,000

Loans Payable - Additional info

Loans Payable - Additional information (Details)	Apr. 23, 2020USD ($)	Sep. 30, 2019	Apr. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)	Mar. 30, 2019USD ($)
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment	$ 10,725,000
Debt Instrument, Interest Rate, Stated Percentage	2.79%
Interest Expense, Debt				$ 500,000	$ 600,000	$ 1,100,000	$ 1,300,000
Long-term Debt, Gross				47,711,000		47,711,000		$ 47,002,000
Debt Instrument, Unamortized Discount				1,950,000		1,950,000		1,425,000
Write-off of debt issuance costs						77,000	0
Amortization of Debt Discount (Premium)				98,000	$ 33,000	132,000	$ 68,000
Debt Instrument Mortgage Insurance Premium percentage	0.65%
Debt Instrument, Description of Variable Rate Basis	100
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
Proceeds from Issuance of Debt	$ 11,900,000
Line of Credit Facility, Fair Value of Amount Outstanding	10,800,000
Debt Issuance Costs, Current, Net	$ 700,000
Capital One National Association Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		100.00%
Debt Extinguishment Percentage		10.00%
Prepayment Premium percentage Prior to First anniversary		1.00%
CIBC Bank [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross				0		0		10,725,000
Long-term Debt, Fair Value									$ 10,725,000
ORIX Real Estate Capital, LLC [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment			$ 3,800,000			183,000
Debt Instrument, Interest Rate, Stated Percentage			4.20%
Long-term Debt, Gross				$ 37,308,000		$ 37,308,000		$ 25,804,000
Debt Instrument, Basis Spread on Variable Rate			100.00%
Debt Instrument Mortgage Insurance Premium percentage			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			$ 200,000

Equity-Method Investments - Res

Equity-Method Investments - Results of Operations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Schedule of Equity Method Investments [Line Items]
Summit equity interest in JV net income (loss)	$ 137,000	$ (100,000)	$ 167,000	$ 30,000
SUL JV
Schedule of Equity Method Investments [Line Items]
Total revenue	4,600,000	4,612,000	9,150,000	8,978,000
Net operating income	3,420,000	3,775,000	6,741,000	7,181,000
Income from operations	1,978,000	2,231,000	3,856,000	4,105,000
Net income (loss)	741,000	584,000	1,696,000	1,015,000
Summit equity interest in JV net income (loss)	74,000	55,000	169,000	98,000
Fantasia JV
Schedule of Equity Method Investments [Line Items]
Total revenue	1,022,000	610,000	2,074,000	1,111,000
Net operating income	284,000	314,000	639,000	749,000
Income from operations	116,000	145,000	304,000	389,000
Net income (loss)	(57,000)	(275,000)	(78,000)	(279,000)
Summit equity interest in JV net income (loss)	(20,000)	(95,000)	(28,000)	(96,000)
Fantasia II JV
Schedule of Equity Method Investments [Line Items]
Total revenue	890,000	878,000	1,782,000	1,757,000
Net operating income	714,000	713,000	1,429,000	1,427,000
Income from operations	484,000	481,000	991,000	963,000
Net income (loss)	242,000	234,000	508,000	470,000
Summit equity interest in JV net income (loss)	48,000	47,000	102,000	94,000
Fantasia III JV
Schedule of Equity Method Investments [Line Items]
Total revenue	2,000,000	1,977,000	4,000,000	3,954,000
Net operating income	1,474,000	1,470,000	2,953,000	2,946,000
Income from operations	1,104,000	1,025,000	2,141,000	2,056,000
Net income (loss)	566,000	301,000	966,000	604,000
Summit equity interest in JV net income (loss)	57,000	30,000	97,000	60,000
FPH JV
Schedule of Equity Method Investments [Line Items]
Total revenue	886,000	896,000	1,771,000	1,790,000
Net operating income	761,000	760,000	1,524,000	1,520,000
Income from operations	418,000	414,000	839,000	829,000
Net income (loss)	(51,000)	(969,000)	(1,405,000)	(927,000)
Summit equity interest in JV net income (loss)	(5,000)	(97,000)	(140,000)	(93,000)
Indiana JV
Schedule of Equity Method Investments [Line Items]
Total revenue	2,946,000	2,810,000	5,893,000	3,570,000
Net operating income	2,941,000	2,797,000	5,885,000	3,557,000
Income from operations	1,854,000	1,821,000	3,722,000	2,297,000
Net income (loss)	(117,000)	(265,000)	(221,000)	(218,000)
Summit equity interest in JV net income (loss)	$ (5,000)	$ (97,000)	$ (140,000)	$ (93,000)

Equity-Method Investments - Dis

Equity-Method Investments - Distributions receivable (Details ) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Dividends Receivable	$ 632,000	$ 643,000
SUL JV
Dividends Receivable	165,000	97,000
Fantasia JV
Dividends Receivable	36,000	180,000
Fantasia II JV
Dividends Receivable	51,000	48,000
Fantasia III JV
Dividends Receivable	115,000	117,000
FPH JV
Dividends Receivable	22,000	39,000
Indiana JV
Dividends Receivable	$ 243,000	$ 162,000

Equity-Method Investments - Cas

Equity-Method Investments - Cash Distributions (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Total Cash Distributions Received	$ 979,000	$ 563,000
Cash Flow from Operating Activities	339,000	257,000
Cash Flow from Investing Activities	640,000	306,000
SUL JV
Total Cash Distributions Received	235,000	223,000
Cash Flow from Operating Activities	169,000	98,000
Cash Flow from Investing Activities	66,000	125,000
Fantasia JV
Total Cash Distributions Received	144,000	0
Cash Flow from Operating Activities	0	0
Cash Flow from Investing Activities	144,000	0
Fantasia II JV
Total Cash Distributions Received	147,000	144,000
Cash Flow from Operating Activities	101,000	94,000
Cash Flow from Investing Activities	46,000	50,000
Fantasia III JV
Total Cash Distributions Received	69,000	78,000
Cash Flow from Operating Activities	69,000	60,000
Cash Flow from Investing Activities		18,000
FPH JV
Total Cash Distributions Received	84,000	39,000
Cash Flow from Operating Activities	0	5,000
Cash Flow from Investing Activities	84,000	34,000
Indiana JV
Total Cash Distributions Received	300,000	79,000
Cash Flow from Operating Activities	0	0
Cash Flow from Investing Activities	$ 300,000	$ 79,000

Equity-Method Investments - Add

Equity-Method Investments - Additional information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Apr. 30, 2015
Equity Method Investment, Ownership Percentage	10.00%		10.00%
Equity Method Investments	$ 12,329,000		$ 12,329,000		$ 13,131,000
Dividends Receivable	632,000		632,000		$ 643,000
Revenue from Contract with Customer, Including Assessed Tax	292,000	$ 326,000	618,000	$ 536,000
Summit Fantasia ll Holdings LLC [Member]
Revenue from Contract with Customer, Including Assessed Tax	300,000	$ 300,000	600,000	$ 500,000
Indiana JV
Equity Method Investment, Ownership Percentage					20.00%
Equity Method Investments	3,900,000		$ 3,900,000		$ 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	3,000,000		$ 3,000,000		3,100,000
Summit Union Life Holdings, LLC [Member] | Best Years Llc [Member]
Net Operating Cash Flows, Percentage of Interest			75.00%
Capital Proceeds, Percentage of Interest			75.00%
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%
Summit Fantasia Holdings Llc [Member]
Percentage of interest in annual return			8.00%
Equity Method Investments	2,000,000		$ 2,000,000		2,100,000
Summit Fantasia Holdings Llc [Member] | Fantasia Investment III LLC [Member]
Net Operating Cash Flows, Percentage of Interest			50.00%
Capital Proceeds, Percentage of Interest			50.00%
Summit Fantasia Holdings Llc [Member] | Operating Partnership [Member]
Net Operating Cash Flows, Percentage of Interest			50.00%
Summit Fantasia ll Holdings LLC [Member]
Percentage of interest in annual return			8.00%
Equity Method Investments	1,500,000		$ 1,500,000		1,500,000
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			30.00%
Capital Proceeds, Percentage of Interest			30.00%
Summit Fantasia Holdings III, LLC [Member]
Percentage of interest in annual return			9.00%
Equity Method Investments	1,600,000		$ 1,600,000		1,600,000
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%
Equity Method Investments	300,000		$ 300,000		500,000
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%
JV 2 Properties [Member]
Dividends Receivable	$ 184,000		$ 184,000		$ 184,000	$ 362,000

Receivables (Details)

Receivables (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Receivables
Straight-line rent receivables	$ 2,671,000	$ 2,546,000
Distributions receivable from Equity-Method Investments	632,000	643,000
Receivable from JV 2 properties	184,000	184,000
Asset management fees	322,000	430,000
Other receivables	46,000	9,000
Total	$ 3,855,000	$ 3,812,000

Receivables - Additional Inform

Receivables - Additional Information (Details) - USD ($)	Jan. 01, 2019	Jun. 30, 2020	Dec. 31, 2019
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
Accounts and Notes Receivable, Net		$ 400,000	$ 500,000
Friendswood TRS [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivable with Imputed Interest, Discount		$ 95,000

Related Party Transactions (Det

Related Party Transactions (Details) - Cornerstone Realty Advisors, LLC [Member]	Jun. 30, 2020USD ($)
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

Concentration of Risk (Details)

Concentration of Risk (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Tenant One, Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	10.00%	10.00%	10.00%	10.00%
Tenant Two, Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	35.00%	35.00%	35.00%	35.00%
Tenant Three, Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	24.00%	24.00%	24.00%	24.00%
Tenant Four Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	19.00%	19.00%	20.00%	19.00%
Tenant Five Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	15.00%	15.00%	15.00%	15.00%
Assets, Total [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			20.00%

Fair Value Measurements of Fi_2

Fair Value Measurements of Financial Instruments (Details) - USD ($)	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Payable, Fair Value Disclosure	$ 53,300,000		$ 47,400,000
Long-term Debt, Gross	47,711,000		$ 47,002,000
Asset Impairment Charges	$ 0	$ 0
Minimum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Inputs Discount Rate, Loans payable	2.80%
Maximum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Inputs Discount Rate, Loans payable	4.20%
Weighted Average [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Inputs Discount Rate, Loans payable	2.80%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	Mar. 14, 2019	Jun. 30, 2020
Commitments and Contingencies
Loss Contingency, Damages Sought, Value	$ 588,672
Payments for Repurchase of Equity		$ 900,000

Equity - Black-Scholes option-p

Equity - Black-Scholes option-pricing model (Details)	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Equity
Stock options granted | shares	45,000
Expected Volatility	22.31%
Expected term	5 years 9 months
Risk-free interest rate	1.72%
Dividend yield	0.00%
Fair value per share | $ / shares	$ 0.57

Equity - Stock options (Details

Equity - Stock options (Details)	6 Months Ended
	Jun. 30, 2020USD ($)$ / sharesshares
Equity
Options outstanding, Beginning Balance	1,826,908
Granted	45,000
Exercised	0
Options outstanding, Ending Balance	1,871,908
Options exercisable, Ending Balance	1,599,083
Weighted Average Exercise Price, Outstanding at Beginning Balance | $ / shares	$ 2.09
Weighted Average Exercise Price, Granted | $ / shares	2.26
Weighted Average Exercise Price, Outstanding at Ending Balance | $ / shares	2.09
Weighted Average Exercise Price, Exercisable at Ending Balance | $ / shares	$ 2.06
Options outstanding, Weighted Average Remaining Contractual Term	7 years 3 months 26 days
Options exercisable, Weighted Average Remaining Contractual Term	7 years 29 days
Options outstanding, Aggregate Intrinsic Value | $	$ 1,375,000
Options exercisable, Aggregate Intrinsic Value | $	$ 1,221,000

Equity - Unrecognized stock-bas

Equity - Unrecognized stock-based compensation expense (Details)	Jun. 30, 2020USD ($)
Schedule of Equity Method Investments [Line Items]
Unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures	$ 153,000
July 1, 2020 to December 31, 2020 (Member)
Schedule of Equity Method Investments [Line Items]
Unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures	71,000
2021 [Member]
Schedule of Equity Method Investments [Line Items]
Unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures	66,000
2022 [Member]
Schedule of Equity Method Investments [Line Items]
Unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures	15,000
2023 [Member]
Schedule of Equity Method Investments [Line Items]
Unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures	$ 1,000

Equity - Additional information

Equity - Additional information (Details) - USD ($)	Jan. 01, 2020	Mar. 20, 2019	Apr. 02, 2018	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Schedule of Equity [Line Items]
Granted						45,000
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, Options, Outstanding, Weighted Average Remaining Contractual Term						7 years 3 months 26 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Exercise Price, Beginning Balance				$ 0.56		$ 0.56
General and Administrative Expense [Member]
Schedule of Equity [Line Items]
Allocated Share-based Compensation Expense				$ 38,000	$ 81,000	$ 80,000	$ 149,000
Omnibus Incentive Plan [Member]
Schedule of Equity [Line Items]
Granted	45,000
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, Options, Outstanding, Weighted Average Remaining Contractual Term	10 years
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
Incentive Plan [Member]
Schedule of Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
(Loss) income	$ (63,000)	$ (757,000)	$ (264,000)	$ 3,043,000
Income (loss) attributable to noncontrolling interest	(11,000)	(12,000)	(23,000)	111,000
Net (loss) income applicable to common stockholders	$ (74,000)	$ (769,000)	$ (287,000)	$ 3,154,000
Basic:
Denominator for basic EPS - weighted average shares	23,027,978	23,027,978	23,027,978	23,027,978
Effect of dilutive shares:
Stock options	0	0	0	485,353
Denominator for diluted EPS - adjusted weighted average shares	23,027,978	23,027,978	23,027,978	23,513,331
Basic EPS	$ 0	$ (0.03)	$ (0.01)	$ 0.14
Diluted EPS	$ 0	$ (0.03)	$ (0.01)	$ 0.13

Dispositions (Details)

Dispositions (Details) - USD ($)	1 Months Ended	6 Months Ended
	Feb. 14, 2019	Jun. 30, 2019	Jun. 30, 2020	Dec. 31, 2019	Feb. 15, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
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			$ 48,800,000	$ 48,745,000
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		$ 4,200,000
Property, Plant and Equipment, Net					$ 22,100,000
Liabilities					19,500,000
Loan payable disposition of properties					$ 19,400,000
HP Shelby LLC [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Equity Method Investment, Ownership Percentage	95.00%