Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 24, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Strategic Realty Trust, Inc. | ||
Entity Central Index Key | 1,446,371 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 10,342,707 | ||
Entity Common Stock, Shares Outstanding | 11,037,948 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Investments in real estate | ||
Land | $ 15,981,000 | $ 45,740,000 |
Building and improvements | 56,158,000 | 109,998,000 |
Tenant improvements | 3,676,000 | 10,267,000 |
Investments in real estate, net | 75,815,000 | 166,005,000 |
Accumulated depreciation | (10,068,000) | (16,717,000) |
Investments in real estate, net | 65,747,000 | 149,288,000 |
Cash and cash equivalents | 8,793,000 | 3,211,000 |
Restricted cash | 2,693,000 | 5,163,000 |
Prepaid expenses and other assets, net | 731,000 | 1,363,000 |
Tenant receivables, net | 1,664,000 | 2,678,000 |
Investments in unconsolidated joint ventures | 6,902,000 | 0 |
Lease intangibles, net | 4,290,000 | 13,658,000 |
Assets held for sale | 9,896,000 | 342,000 |
Deferred financing costs, net | 918,000 | 1,788,000 |
TOTAL ASSETS | 101,634,000 | 177,491,000 |
LIABILITIES | ||
Notes payable | 34,391,000 | 122,148,000 |
Accounts payable and accrued expenses | 1,486,000 | 2,516,000 |
Amounts due to affiliates | 49,000 | 1,000 |
Other liabilities | 1,479,000 | 1,767,000 |
Liabilities related to assets held for sale | 7,036,000 | 0 |
Below market lease intangibles, net | 3,303,000 | 5,541,000 |
Deferred gain on sale of properties to unconsolidated joint venture | 1,225,000 | 0 |
TOTAL LIABILITIES | $ 48,969,000 | $ 131,973,000 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized, none issued and outstanding | $ 0 | $ 0 |
Common stock, $0.01 par value; 400,000,000 shares authorized, 11,037,948 and 10,969,714 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | 111,000 | 110,000 |
Additional paid-in capital | 96,684,000 | 96,279,000 |
Accumulated deficit | (46,124,000) | (54,451,000) |
Total stockholder's equity | 50,671,000 | 41,938,000 |
Non-controlling interests | 1,994,000 | 3,580,000 |
TOTAL EQUITY | 52,665,000 | 45,518,000 |
TOTAL LIABILITIES & EQUITY | $ 101,634,000 | $ 177,491,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, Issued | 11,037,948 | 10,969,714 |
Common stock, shares outstanding | 11,037,948 | 10,969,714 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | ||
Rental and reimbursements | $ 16,047,000 | $ 21,703,000 |
Expense: | ||
Operating and maintenance | 5,648,000 | 7,760,000 |
General and administrative | 3,171,000 | 4,343,000 |
Depreciation and amortization | 4,840,000 | 7,869,000 |
Transaction expenses | 147,000 | 0 |
Interest expense | 5,459,000 | 8,983,000 |
Total expense | 19,265,000 | 28,955,000 |
Operating loss | (3,218,000) | (7,252,000) |
Other income (expense): | ||
Other expense | (134,000) | (610,000) |
Equity in losses of unconsolidated joint ventures | (236,000) | 0 |
Loss on impairment of real estate | 0 | (3,900,000) |
Loss on extinguishment of debt | (3,365,000) | (295,000) |
Gain on disposal of real estate | 20,944,000 | 109,000 |
Income (loss) from continuing operations | 13,991,000 | (11,948,000) |
Discontinued operations: | ||
Loss from discontinued operations | 0 | (25,000) |
Gain on disposal of real estate | 0 | 3,084,000 |
Income (loss) from discontinued operations | 0 | 3,059,000 |
Net income (loss) | 13,991,000 | (8,889,000) |
Net income (loss) attributable to non-controlling interests | 681,000 | (226,000) |
Net income (loss) attributable to common stockholders | $ 13,310,000 | $ (8,663,000) |
Basic earnings (loss) per common share: | ||
Continuing operations | $ 1.21 | $ (1.02) |
Discontinued operations | 0 | 0.23 |
Net earnings (loss) attributable to common shares | 1.21 | (0.79) |
Diluted earnings (loss) per common share: | ||
Continuing operations | 1.21 | (1.02) |
Discontinued operations | 0 | 0.23 |
Net earnings (loss) attributable to common shares | $ 1.21 | $ (0.79) |
Weighted average shares outstanding used to calculate earnings (loss) per common share: | ||
Basic | 10,960,613 | 10,969,714 |
Diluted | 10,960,613 | 10,969,714 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | Non-controlling Interests |
BALANCE at Dec. 31, 2013 | $ 57,083,000 | $ 110,000 | $ 96,261,000 | $ (43,266,000) | $ 53,105,000 | $ 3,978,000 |
BALANCE (in shares) at Dec. 31, 2013 | 10,969,714 | |||||
Issuance of common shares | 18,000 | $ 0 | 18,000 | 0 | 18,000 | 0 |
Issuance of common shares (in shares) | 0 | |||||
Quarterly distributions | (2,694,000) | $ 0 | 0 | (2,522,000) | (2,522,000) | (172,000) |
Net income (loss) | (8,889,000) | 0 | 0 | (8,663,000) | (8,663,000) | (226,000) |
BALANCE at Dec. 31, 2014 | 45,518,000 | $ 110,000 | 96,279,000 | (54,451,000) | 41,938,000 | 3,580,000 |
BALANCE (in shares) at Dec. 31, 2014 | 10,969,714 | |||||
Redemption of member interests | (2,102,000) | $ 0 | 0 | 0 | 0 | (2,102,000) |
Redemption of common shares | (1,392,000) | $ (2,000) | (1,390,000) | 0 | (1,392,000) | 0 |
Redemption of common shares (in shares) | (205,495) | |||||
Quarterly distributions | (2,792,000) | $ 0 | 0 | (2,627,000) | (2,627,000) | (165,000) |
Special distribution | (558,000) | $ 3,000 | 1,795,000 | (2,356,000) | (558,000) | 0 |
Special distribution (in shares) | 273,729 | |||||
Net income (loss) | 13,991,000 | $ 0 | 0 | 13,310,000 | 13,310,000 | 681,000 |
BALANCE at Dec. 31, 2015 | $ 52,665,000 | $ 111,000 | $ 96,684,000 | $ (46,124,000) | $ 50,671,000 | $ 1,994,000 |
BALANCE (in shares) at Dec. 31, 2015 | 11,037,948 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 13,991,000 | $ (8,889,000) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Net (gain) loss on impairment and disposal of real estate | (20,944,000) | 707,000 |
Loss on extinguishment of debt | 3,365,000 | 295,000 |
Straight-line rent | (127,000) | (286,000) |
Equity in losses of unconsolidated joint ventures | 236,000 | 0 |
Amortization of deferred costs and notes payable premium/discount | 544,000 | 747,000 |
Depreciation and amortization | 4,840,000 | 7,869,000 |
Amortization of above and below-market leases | (193,000) | 51,000 |
Bad debt expense (income) | 15,000 | (255,000) |
Stock-based compensation expense | 0 | 18,000 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (31,000) | 153,000 |
Tenant receivables | (89,000) | 775,000 |
Accounts payable and accrued expenses | (1,030,000) | 274,000 |
Amounts due to affiliates | 48,000 | (441,000) |
Other liabilities | (272,000) | (1,640,000) |
Net change in restricted cash for operational expenditures | 1,411,000 | 127,000 |
Net cash provided by (used in) operating activities | 1,764,000 | (495,000) |
Cash flows from investing activities: | ||
Net proceeds from the sale of real estate | 103,113,000 | 25,832,000 |
Investments in unconsolidated joint ventures | (7,630,000) | 0 |
Distributions from unconsolidated joint ventures | 492,000 | 0 |
Improvements, capital expenditures, and leasing costs | (845,000) | (2,100,000) |
Issuance of note receivable | (7,000,000) | 0 |
Principal payment received on note receivable | 7,000,000 | 0 |
Net change in restricted cash for capital expenditures | 1,059,000 | (815,000) |
Net cash provided by investing activities | 96,189,000 | 22,917,000 |
Cash flows from financing activities: | ||
Redemptions of member interests | (2,102,000) | 0 |
Redemptions of common stock | (1,392,000) | 0 |
Quarterly distributions | (2,792,000) | (2,595,000) |
Special distribution | (558,000) | 0 |
Proceeds from notes payable | 4,000,000 | 19,900,000 |
Repayment of notes payable | (86,362,000) | (37,982,000) |
Payment of penalties associated with early repayment of notes payable | (2,964,000) | 0 |
Payment of loan fees and financing costs | (201,000) | (767,000) |
Net cash used in financing activities | (92,371,000) | (21,444,000) |
Net increase in cash and cash equivalents | 5,582,000 | 978,000 |
Cash and cash equivalents - beginning of year | 3,211,000 | 2,233,000 |
Cash and cash equivalents - end of year | 8,793,000 | 3,211,000 |
Supplemental disclosure of non-cash financing activities and other cash flow information: | ||
Distributions declared but not paid | 688,000 | 684,000 |
Cash paid for interest | 5,796,000 | 8,132,000 |
Non-cash financing activity associated with stock distribution | $ 1,798,000 | $ 0 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Business [Abstract] | |
ORGANIZATION AND BUSINESS | Strategic Realty Trust, Inc. (the “Company”) was formed on September 18, 2008 as a Maryland corporation. Effective August 22, 2013, the Company changed its name from TNP Strategic Retail Trust, Inc. to Strategic Realty Trust, Inc. The Company believes it qualifies as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), and has elected REIT status beginning with the taxable year ended December 31, 2009, the year in which the Company began material operations. The Company was initially capitalized by the sale of shares of common stock to Thompson National Properties, LLC (“TNP LLC”) on October 16, 2008. On November 4, 2008, the Company filed a registration statement on Form S-11 with the Securities and Exchange Commission (the “SEC”) to offer a maximum of 100,000,000 10.00 10,526,316 9.50 10,688,940 104,700,000 391,182 3,620,000 50,000 273,729 365,903 2,995,000 As a result of the termination of the Offering, offering proceeds are not currently available to fund the Company’s cash needs, and will not be available unless the Company engages in an offering of its securities. Since the Company’s inception, its business has been managed by an external advisor, the Company has no direct employees and all management and administrative personnel responsible for conducting the Company’s business are employed by its advisor. Currently the Company is externally managed and advised by SRT Advisor, LLC, a Delaware limited liability company (the “Advisor”) pursuant to an advisory agreement with the Advisor (the “Advisory Agreement”) initially executed on August 10, 2013, and subsequently renewed in August 2014 and August 2015. The current term of the Advisory Agreement terminates on August 10, 2016. The Advisor is an affiliate of Glenborough, LLC (together with its affiliates, “Glenborough”), a privately held full-service real estate investment and management company focused on the acquisition, management and leasing of commercial properties. Substantially all of the Company’s business is conducted through Strategic Realty Operating Partnership, L.P. (the “OP”). During the Offering, as the Company accepted subscriptions for shares of its common stock, it transferred substantially all of the net proceeds of the Offering to the OP as a capital contribution. The Company is the sole general partner of the OP. As of both December 31, 2015 and 2014, the Company owned 96.2 The Company’s principal demand for funds has been for the acquisition of real estate assets, the payment of operating expenses, interest on outstanding indebtedness, the payment of distributions to stockholders and investments in unconsolidated joint ventures. Substantially all of the proceeds of the completed Offering have been used to fund investments in real properties and other real estate-related assets, for payment of operating expenses, for payment of interest, for payment of various fees and expenses, such as acquisition fees and management fees, and for payment of distributions to stockholders. The Company’s available capital resources, cash and cash equivalents on hand and sources of liquidity are currently limited. The Company expects its future cash needs will be funded using cash from operations, future asset sales, debt financing and the proceeds to the Company from any sale of equity that it may conduct in the future. The Company has invested directly, and indirectly through joint ventures, in a portfolio of income-producing retail properties located throughout the United States, with a focus on grocery anchored multi-tenant retail centers, including neighborhood, community and lifestyle shopping centers, multi-tenant shopping centers and free standing single-tenant retail properties. As of December 31, 2015, the Company’s portfolio was comprised of 9 properties, including 1 property held for sale, with approximately 766,000 rentable square feet of retail space located in 7 states 90 On March 11, 2015 the Company invested in a joint venture with Grocery Retail Grand Avenue Partners, LLC, a subsidiary of Oaktree Real Estate Opportunities Fund V.I. L.P. (“Oaktree”) and GLB SGO, LLC a wholly-owned subsidiary of Glenborough Property Partners, LLC (“GPP”). On September 30, 2015, the Company invested in a joint venture with MN Retail Grand Avenue Partners, LLC a subsidiary of Oaktree and GLB SGO MN, a wholly-owned subsidiary of GPP. GPP is an affiliate of the Advisor and the Company’s property manager. These joint ventures own property types similar to properties that are directly owned by the Company. On December 21, 2015, the Company entered into the Limited Liability Company Agreement of 3032 Wilshire Investors, LLC, to form a joint venture. See further discussion at Note 15. “Subsequent Events.” |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-K and Regulation S-X. The consolidated financial statements include the accounts of the Company, the OP, and their direct and indirect owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been included. The Company evaluates the need to consolidate joint ventures and variable interest entities based on standards set forth in ASC 810, Consolidation The Company’s non-controlling interests are comprised primarily of common units in the OP (“Common Units”) and, until its redemption on March 12, 2015, the membership interest in SRT Secured Holdings, LLC (“Secured Holdings”), one of the Company’s subsidiaries. The Company accounts for non-controlling interests in accordance with ASC 810. In accordance with ASC 810, the Company reports non-controlling interests in subsidiaries within equity in the consolidated financial statements, but separate from stockholders’ equity. Net income (loss) attributable to non-controlling interests is presented as a reduction from net income (loss) in calculating net income (loss) attributable to common stockholders on the consolidated statement of operations. Acquisitions or dispositions of non-controlling interests that do not result in a change of control are accounted for as equity transactions. In addition, ASC 810 requires that a parent company recognize a gain or loss in the Company’s results of operations when a subsidiary is deconsolidated upon a change in control. In accordance with ASC 480-10, Distinguishing Liabilities from Equity The preparation of the Company’s consolidated financial statements requires significant management judgments, assumptions and estimates about matters that are inherently uncertain. These judgments affect the reported amounts of assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in the Company’s consolidated financial statements, and actual results could differ from the estimates or assumptions used by management. Additionally, other companies may utilize different estimates that may impact the comparability of the Company’s consolidated results of operations to those of companies in similar businesses. The Company considers significant estimates to include the carrying amounts and recoverability of investments in real estate, impairments, real estate acquisition purchase price allocations, allowance for doubtful accounts, estimated useful lives to determine depreciation and amortization and fair value determinations, among others. Cash and cash equivalents represents current bank accounts and other bank deposits free of encumbrances and having maturity dates of three months or less from the respective dates of deposit. The Company limits cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk in cash. Restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, debt service and leasing costs held by lenders. Revenues include minimum rents, expense recoveries and percentage rental payments. Minimum rents are recognized on an accrual basis over the terms of the related leases on a straight-line basis when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased property. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. For leases with minimum scheduled rent increases, the Company recognizes income on a straight-line basis over the lease term when collectability is reasonably assured. Recognizing rental income on a straight-line basis for leases results in recognized revenue amounts which differ from those that are contractually due from tenants on a cash basis. If the Company determines the collectability of straight-line rents is not reasonably assured, the Company limits future recognition to amounts contractually owed and paid, and, when appropriate, establishes an allowance for estimated losses. The Company maintains an allowance for doubtful accounts, including an allowance for straight-line rent receivables, for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments. The Company monitors the liquidity and creditworthiness of its tenants on an ongoing basis. For straight-line rent amounts, the Company’s assessment is based on amounts estimated to be recoverable over the term of the lease. The Company’s straight-line rent receivable which is included in tenant receivables, net, on the consolidated balance sheets, was $ 592,000 1,681,000 Certain leases contain provisions that require the payment of additional rents based on the respective tenants’ sales volume (contingent or percentage rent) and substantially all contain provisions that require reimbursement of the tenants’ allocable real estate taxes, insurance and common area maintenance costs (“CAM”). Revenue based on percentage of tenants’ sales is recognized only after the tenant exceeds its sales breakpoint. Revenue from tenant reimbursements of taxes, insurance and CAM is recognized in the period that the applicable costs are incurred in accordance with the lease agreement. The Company recognizes gains or losses on sales of real estate in accordance with ASC 360, Property, Plant, and Equipment 1.2 Valuation of Accounts Receivable The Company makes estimates of the collectability of its tenant receivables related to base rents, including deferred rents receivable, expense reimbursements and other revenue or income. The Company analyzes tenant receivables, deferred rent receivable, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In addition, with respect to tenants in bankruptcy, the Company will make estimates of the expected recovery of pre-petition and post-petition claims in assessing the estimated collectability of the related receivable. In some cases, the ultimate resolution of these claims can exceed one year. When a tenant is in bankruptcy, the Company will record a bad debt reserve for the tenant’s receivable balance and generally will not recognize subsequent rental revenue until cash is received or until the tenant is no longer in bankruptcy and has the ability to make rental payments. A concentration of credit risk arises in the Company’s business when a nationally or regionally-based tenant occupies a substantial amount of space in multiple properties owned by the Company. In that event, if the tenant suffers a significant downturn in its business, it may become unable to make its contractual rent payments to the Company, exposing the Company to potential losses in rental revenue, expense recoveries, and percentage rent. Generally, the Company does not obtain security deposits from the nationally-based or regionally-based tenants in support of their lease obligations to the Company. The Company regularly monitors its tenant base to assess potential concentrations of credit risk. As of December 31, 2015, excluding 10 33,000 The Company records the acquisition of income-producing real estate or real estate that will be used for the production of income as a business combination when the acquired property meets the definition of a business. Assets acquired and liabilities assumed in a business combination are generally measured at their acquisition-date fair values, including tenant improvements and identifiable intangible assets or liabilities. Tenant improvements recognized represent the tangible assets associated with the existing leases valued on a fair value basis at the acquisition date. Tenant improvements are classified as assets under investments in real estate and are depreciated over the remaining lease terms. Identifiable intangible assets and liabilities relate to the value of in-place operating leases which come in three forms: (1) leasing commissions and legal costs, which represent the value associated with “cost avoidance” of acquiring in-place leases, such as lease commissions paid under terms generally experienced in markets in which the Company operates; (2) value of in-place leases, which represents the estimated loss of revenue and of costs incurred for the period required to lease the “assumed vacant” property to the occupancy level when purchased; and (3) above- or below-market value of in-place leases, which represents the difference between the contractual rents and market rents at the time of the acquisition, discounted for tenant credit risks. The value of in-place leases is recorded in acquired lease intangibles and amortized over the remaining lease term. Above- or below-market-rate leases are classified in acquired lease intangibles, or in acquired below-market lease intangibles, depending on whether the contractual terms are above- or below-market. Above-market leases are amortized as a decrease to rental revenue over the remaining non-cancelable terms of the respective leases and below-market leases are amortized as an increase to rental revenue over the remaining initial lease term and any fixed rate renewal periods, if applicable. Acquisition costs are expensed as incurred. During the years ended December 31, 2015 and 2014, the Company did not acquire any properties. Costs incurred in pursuit of targeted properties for acquisitions not yet closed or those determined to no longer be viable and costs incurred which are expected to result in future period disposals of property not currently classified as held for sale properties have been expensed and are also classified in the consolidated statements of operations as transaction expenses. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, and the number of years the property will be held for investment. The use of inappropriate assumptions would result in an incorrect valuation of the Company’s acquired tangible assets, identifiable intangibles and assumed liabilities, which would impact the amount of the Company’s results of operations. These allocations also impact depreciation expense, amortization expense and gains or losses recorded on future sales of properties. ASC 280, Segment Reporting Real property is recorded at estimated fair value at time of acquisition with subsequent additions at cost, less accumulated depreciation and amortization. Costs include those related to acquisition, development and construction, including tenant improvements, interest incurred during development, costs of pre-development and certain direct and indirect costs of development. Years Buildings and improvements 5 30 Tenant improvements 1 36 Tenant improvement costs recorded as capital assets are depreciated over the tenant’s remaining lease term which the Company has determined approximates the remaining useful life of the improvement. Expenditures for ordinary maintenance and repairs are expensed to operations as incurred. Significant renovations and improvements that improve or extend the useful lives of assets are capitalized. The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its investments in real estate and related intangible assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of the real estate and related intangible assets through its undiscounted future cash flows (excluding interest) and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the investments in real estate and related intangible assets. Key inputs that the Company estimates in this analysis include projected rental rates, capital expenditures, property sale capitalization rates, and expected holding period of the property. The Company evaluates its equity investments for impairment in accordance with ASC 320, Investments Debt and Securities The Company did not record any impairment losses for the year ended December 31, 2015. For the year ended December 31, 2014, the Company recorded impairment losses of $ 2,500,000 1,400,000 When certain criteria are met, long-lived assets are classified as held for sale and are reported at the lower of their carrying value or their fair value, less costs to sell, and are no longer depreciated. For property sales prior to May 1, 2014, discontinued operations is a component of an entity that has either been disposed of or is deemed to be held for sale and (i) the operations and cash flows of the component have been eliminated from ongoing operations as a result of the disposal transaction and (ii) the entity does not have any significant continuing involvement in the operations of the component after the disposal transaction. For property sales on or after May 1, 2014, a disposal of a component of an entity is required to be reported as discontinued operations only if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. See Note 3. “Real Estate Investments” for a discussion of property sales and discontinued operations. Under GAAP, the Company is required to measure or disclose certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available for inputs that are significant to the fair value measurement. When available, the Company utilizes quoted market prices or other observable inputs (Level 2 inputs), such as interest rates or yield curves, from independent third-party sources to determine fair value and classify such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to use significant judgment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third-party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for an asset owned by it to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and external appraisals Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The Company considers the following factors to be indicators of an inactive market: (1) there are few recent transactions; (2) price quotations are not based on current information; (3) price quotations vary substantially either over time or among market makers (for example, some brokered markets); (4) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability; (5) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability; (6) there is a wide bid-ask spread or significant increase in the bid-ask spread; (7) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities; and (8) little information is released publicly (for example, a principal-to-principal market). The Company considers the following factors to be indicators of non-orderly transactions: (1) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions; (2) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant; (3) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced); and (4) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. Deferred financing costs represent commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing. These costs are amortized over the terms of the respective financing agreements using the straight-line method which approximates the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financings that do not close are expensed in the period in which it is determined that the financing will not close. The Company accounts for its current investments in joint ventures under the equity method of accounting. Under the equity method of accounting, the Company records its initial investment in a joint venture at cost and subsequently adjusts the cost for the Company’s share of the joint venture’s income or loss and cash contributions and distributions each period. See Note 4. “Investments in Unconsolidated Joint Ventures” for a discussion of the Company’s investments in joint ventures. The Company monitors its investments in unconsolidated joint ventures periodically for impairment. The Company has elected to be taxed as a REIT under the Internal Revenue Code. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90 The Company evaluates tax positions taken in the consolidated financial statements under the interpretation for accounting for uncertainty in income taxes. As a result of this evaluation, the Company may recognize a tax benefit from an uncertain tax position only if it is “more-likely-than-not” that the tax position will be sustained on examination by taxing authorities. When necessary, deferred income taxes are recognized in certain taxable entities. Deferred income tax is generally a function of the period’s temporary differences (items that are treated differently for tax purposes than for financial reporting purposes). A valuation allowance for deferred income tax assets is provided if all or some portion of the deferred income tax asset may not be realized. Any increase or decrease in the valuation allowance is generally included in deferred income tax expense. The Company’s tax returns remain subject to examination and consequently, the taxability of the distributions is subject to change. During the current year, the Company was subject to alternative minimum state/federal taxes totaling approximately $ 200,000 Basic earnings per share (“EPS”) is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed after adjusting the basic EPS computation for the effect of potentially dilutive securities outstanding during the period. The effect of non-vested shares, if dilutive, is computed using the treasury stock method. The Company accounts for non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) as participating securities, which are included in the computation of earnings per share pursuant to the two-class method. The Company’s excess of distributions over earnings related to participating securities are shown as a reduction in income (loss) attributable to common stockholders in the Company’s computation of EPS. Assets sold or held for sale and related liabilities have been reclassified on the consolidated balance sheets. For operating properties sold prior to May 1, 2014, In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements Going Concern In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs Interest Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805 Simplifying the Accounting for Measurement-Period Adjustments In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). |
REAL ESTATE INVESTMENTS
REAL ESTATE INVESTMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate Investments, Net [Abstract] | |
REAL ESTATE INVESTMENTS | 3. REAL ESTATE INVESTMENTS Acquisition of Properties The Company did not have any property acquisitions for the years ended December 31, 2015 and 2014. Sale of Properties Gross Original Property Location Acquisition Date Sale Date Sale Price Purchase Price (1) Osceola Village Kissimmee, FL 10/11/2011 3/11/2015 $ 22,000,000 $ 21,800,000 (2) Constitution Trail Normal, IL 10/21/2011 3/11/2015 23,100,000 18,000,000 Aurora Commons Aurora, OH 3/20/2012 3/11/2015 8,500,000 7,000,000 Moreno Marketplace Moreno Valley, CA 11/19/2009 10/29/2015 19,400,000 12,500,000 Northgate Plaza Tuczon, AZ 7/6/2010 10/29/2015 12,800,000 8,050,000 Summit Point Fayetteville, GA 12/21/2011 10/30/2015 19,600,000 18,250,000 $ 105,400,000 $ 85,600,000 (1) The original purchase price amounts do not include acquisition fees. (2) The original purchase price for Osceola Village included an additional pad which was sold for $ 875,000 The sale of these six properties did not represent a strategic shift that will have a major effect on the Company’s operations and financial results and, as a result, was not included in discontinued operations for the year ended December 31, 2015. The Company’s consolidated statements of operations include net operating income of $ 128,000 2,400,000 The Company used the net sales proceeds from the sale of Moreno Marketplace and Northgate Plaza to pay off a portion of $ 30.7 11.9 The sale of Osceola Village, Constitution Trail and Aurora Commons (the “SGO Properties”) was completed in connection with the formation of the SGO Joint Venture, as defined and further described in Note 4. “Investments in Unconsolidated Joint Ventures.” The three properties were sold to the SGO Joint Venture, and the closing of the sale was conditioned on the Company receiving a 19 19 4.5 36.4 Pro Forma Financial Information The pro forma financial information below is based on the Company’s historical consolidated statements of operations for the years ended December 31, 2015 and 2014, adjusted to give effect to the sale of the SGO Properties, Moreno Marketplace, Northgate Plaza and Summit Point as if they had been completed at the beginning of 2014. The pro forma financial information is presented for information purposes only, and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2015 and 2014, respectively, nor does it purport to represent results of operations for future periods. Moreno, Northgate SGO Properties Summit Dispositions Pro Forma Year Ended Disposition Pro Forma Year Ended December 31, 2015 Pro Forma Adjustments Adjustments December 31, 2015 Rental and reimbursements $ 16,047,000 $ (1,058,000) $ (3,558,000) $ 11,431,000 Income (loss) from continuing operations $ 13,991,000 $ (4,448,000) $ (15,649,000) $ (6,106,000) Net income (loss) $ 13,991,000 $ (4,448,000) $ (15,649,000) $ (6,106,000) Net income (loss) available to common shareholders $ 13,310,000 $ (4,280,000) $ (15,649,000) $ (6,619,000) Weighted average shares outstanding 10,960,613 10,960,613 Net earnings (loss) per share attributable to common stockholders - basic and diluted $ 1.21 $ (0.60) Moreno, Northgate SGO Properties Summit Dispositions Pro Forma Year Ended Disposition Pro Forma Year Ended December 31, 2014 Pro Forma Adjustments Adjustments December 31, 2014 Rental and reimbursements $ 21,703,000 $ (5,127,000) $ (4,314,000) $ 12,262,000 Income (loss) from continuing operations $ (11,948,000) $ 4,893,000 $ 303,000 $ (6,752,000) Net income (loss) $ (8,889,000) $ 4,893,000 $ 303,000 $ (3,693,000) Net income (loss) available to common stockholders $ (8,663,000) $ 4,707,000 $ 303,000 $ (3,653,000) Weighted avergae shares outstanding 10,969,714 10,969,714 Net earnings (loss) per share attributable to common stockholders - basic and diluted $ (0.79) $ (0.33) On November 25, 2014, the Company completed the sale of San Jacinto Esplanade in San Jacinto, California for a gross sales price of $ 5,700,000 7,088,000 Discontinued Operations The Company reports operating properties sold in periods prior to May 1, 2014, as discontinued operations. The results of these discontinued operations are included as a separate component on the consolidated statements of operations under the caption “Discontinued operations”. On January 8, 2014, the Company completed the sale of Visalia Marketplace in Visalia, California for a gross sales price of $ 21,100,000 19,000,000 80 . Year Ended December 31, 2014 Revenues from rental property $ 62,000 Rental property expenses 75,000 Interest expense 12,000 Operating loss from discontinued operations (25,000) Gain on disposal of real estate 3,084,000 Income (loss) from discontinued operations $ 3,059,000 Assets Held for Sale and Liabilities Related to Assets Held for Sale At December 31, 2015, Bloomingdale Hills, located in Riverside, Florida, was classified as held for sale in the consolidated balance sheet. Since the sale of the property does not represent a strategic shift that will have a major effect on the Company’s operations and financial results, its results of operations was not reported as discontinued operations on the Company’s financial statements. The Company intends to use part of the net proceeds from the sale to retire the outstanding debt associated with this property. The Company anticipates that the sale of Bloomingdale Hills will occur within one year from December 31, 2015. The Company’s consolidated statement of operations includes net operating income of $ 140,000 54,000 On November 21, 2014, the Company entered into a sales contract with a buyer to purchase an undeveloped parcel at Osceola Village in Kissimmee, Florida. The gross sales price was $ 875,000 December 31, 2015 2014 ASSETS Investments in real estate Land $ 4,718,000 $ 342,000 Building and improvements 4,697,000 - Tenant improvements 499,000 - 9,914,000 342,000 Accumulated depreciation (891,000) - Investments in real estate, net 9,023,000 342,000 Lease intangibles, net 694,000 - Deferred financing costs, net 127,000 - Tenant receivables, net 36,000 - Prepaid expenses 16,000 - Assets held for sale $ 9,896,000 $ 342,000 LIABILITIES Notes payable $ 5,395,000 $ - Below market lease intangibles, net 1,625,000 - Other liabilities 16,000 - Liabilities related to assets held for sale $ 7,036,000 $ - Amounts above are being presented at their carrying value which the Company believes to be lower than their estimated fair value less costs to sell. |
INVESTMENTS IN UNCONSOLIDATED J
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE | 4. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES SGO Joint Venture Entry into SGO Joint Venture Agreement On March 11, 2015, the Company, through a wholly-owned subsidiary, entered into the Limited Liability Company Agreement of SGO Retail Acquisition Venture, LLC (the “SGO Agreement”) to form a joint venture with Grocery Retail Grand Avenue Partners, LLC, a subsidiary of Oaktree Real Estate Opportunities Fund VI, L.P. (“Oaktree”), and GLB SGO, LLC, a wholly-owned subsidiary of Glenborough Property Partners, LLC (“GPP” and together with the Company and Oaktree, the “SGO Members”). GPP is an affiliate of the Company’s property manager, Glenborough, and an affiliate of the Advisor. 34,000,000 The SGO Agreement provides for the ownership and operation of SGO Retail Acquisition Venture, LLC (the “SGO Joint Venture”), in which the Company owns a 19 1 80 4.5 0.2 19.1 7.0 7 7.0 Pursuant to the SGO Agreement, GPP will manage and conduct the day-to-day operations and affairs of the SGO Joint Venture, subject to certain major decisions set forth in the SGO Agreement that require the consent of at least two members, one of whom must be Oaktree. Income, losses and distributions will generally be allocated based on the members’ respective ownership interests. Additionally, in certain circumstances described in the SGO Agreement, the SGO Members may be required to make additional capital contributions to the SGO Joint Venture, in proportion to the SGO Members’ respective ownership interests. Pursuant to the SGO Agreement, the SGO Joint Venture will pay GPP a monthly asset management fee equal to a percentage of the aggregate investment value of the property owned by the SGO Joint Venture in the preceding month. In addition, if Oaktree has received a 12% internal rate of return on its capital contribution, then promptly following the sale of the last of the Initial SGO Properties, the SGO Joint Venture will pay GPP a disposition fee equal to one percent of the aggregate net sales proceeds received by the SGO Joint Venture from the sales of the Initial SGO Properties. The SGO Joint Venture will make distributions of net cash flow to the SGO Members no less than quarterly, if appropriate. Distributions will be pro rata to the SGO Members in proportion to their respective ownership interests in the SGO Joint Venture until the SGO Members have received a 12 5 5 17 1.5 12.5 5 22 1.75 20 5 Sale of Initial Properties to SGO Joint Venture On March 11, 2015, as part of the formation of the SGO Joint Venture, the Company, through TNP SRT Osceola Village, LLC, its indirect wholly-owned subsidiary, SRT Constitution Trail, LLC, a wholly-owned subsidiary of SRT Secured Holdings, LLC (“SRT Holdings”), and TNP SRT Aurora Commons, LLC, a wholly-owned subsidiary of SRT Holdings, entered into a Purchase and Sale Agreement effective March 11, 2015 to sell Osceola Village, Constitution Trail and Aurora Commons (together with Osceola Village and Constitution Trail, the “Initial SGO Properties”) to the SGO Joint Venture. SRT Holdings is jointly owned by the OP and SRT Manager, an affiliate of Glenborough. At the time of the sale Secured Holdings was jointly owned by the OP and SRT Secured Holdings Manager, LLC (“SRT Manager”), an affiliate of Glenborough. Secured Holdings distributed the proceeds of the sale of the Initial Properties to its members. As a result, on March 12, 2015, Secured Holdings paid SRT Manager approximately $ 2.1 8.33 The closing of the sale was conditioned on the SGO Joint Venture issuing the Company a 19 1 22.0 23.1 8.5 53.6 36.4 4.5 7.0 Due to the related party membership interests in the SGO Joint Venture, the sale of the Initial Properties is considered a partial sale in accordance with ASC Subtopic 360-20, Property, Plant, and Equipment Real Estate Sales 19 1 1.2 20 SGO MN Joint Venture On September 30, 2015, the Company, through wholly-owned subsidiaries, entered into the Limited Liability Company Agreement of SGO MN Retail Acquisitions Venture, LLC (the “SGO MN Agreement”) to form a joint venture with MN Retail Grand Avenue Partners, LLC, a subsidiary of Oaktree, and GLB SGO MN, LLC, a wholly-owned subsidiary of GPP (together with the Company and Oaktree, the “SGO MN Members”). The SGO MN Agreement provides for the ownership and operation of SGO MN Retail Acquisition Venture, LLC (the “SGO MN Joint Venture”), in which the Company owns a 10 10 80 2.8 2.8 22.7 On September 30, 2015, the SGO MN Joint Venture used the capital contributions of the SGO MN Members, together with the proceeds of a loan from Bank of America, NA in the amount of $ 50.5 14 79.0 1.6 Pursuant to the SGO MN Agreement, GPP will manage and conduct the day-to-day operations and affairs of the SGO MN Joint Venture, subject to certain major decisions set forth in the SGO MN Agreement that require the consent of at least two of the SGO MN Members, one of whom must be Oaktree. Income, losses and distributions will generally be allocated based on the SGO MN Members’ respective ownership interests. Additionally, in certain circumstances described in the SGO MN Agreement, the SGO MN Members may be required to make additional capital contributions to the SGO MN Joint Venture, in proportion to the Members’ respective ownership interests. Pursuant to the SGO MN Agreement, the SGO MN Joint Venture will pay GPP a monthly asset management fee equal to a percentage of the aggregate investment value of the property owned by the SGO MN Joint Venture in the preceding month. In addition, if Oaktree has received a 12% internal rate of return on its capital contribution, then promptly following the sale of the last of the SGO MN Properties, the SGO MN Joint Venture will pay GPP a disposition fee equal to one percent of the aggregate net sales proceeds received by the SGO MN Joint Venture from the sales of the SGO MN Properties. The SGO MN Joint Venture will make distributions of net cash flow to the SGO MN Members no less than quarterly, if appropriate. Distributions will be pro rata to the SGO MN Members in proportion to their respective ownership interests in the SGO MN Joint Venture until the SGO MN Members have received a 12 10 17 1.5 17.5 22 1.75 25 Joint Venture Date ofI Ownership Investment SGO Retail Acquisitions Venture, LLC 3/11/2015 19 % $ 4,098,000 SGO MN Retail Acquisitions Venture, LLC 9/30/2015 10 % 2,804,000 Total $ 6,902,000 December 31, 2015 ASSETS Investments in real estate, net $ 110,901,000 Other assets 28,570,000 Total assets $ 139,471,000 LIABILITIES AND MEMBERS' CAPITAL Notes payable 75,632,000 Other liabilities 14,229,000 Total liabilities 89,861,000 Members' capital 49,610,000 Total liabilities and members' capital $ 139,471,000 For the Period Ended December 31, 2015 RESULTS OF OPERATIONS Revenues $ 7,372,000 Expenses (9,222,317) Operating loss (1,850,317) Other income 36,000 Net income $ (1,814,317) On December 21, 2015, the Company entered into the Limited Liability Agreement of 3032 Wilshire Investors, LLC, to form a joint venture. See further discussion at Note 15. “Subsequent Events.” The Company’s off-balance sheet arrangements consist primarily of investments in joint ventures as described above. The joint ventures typically fund their cash needs through secured debt financings obtained by and in the name of the joint venture entity. The joint ventures’ debts are secured by a first mortgage, are without recourse to the joint venture members, and do not represent a liability of the members other than carve-out guarantees for certain matters such as environmental conditions, misuse of funds and material misrepresentations. As of December 31, 2015, the Company has provided carve-out guarantees in connection with the two aforementioned unconsolidated joint ventures; in connection with those carve-out guarantees, the Company has certain rights of recovery from the joint venture members. |
FUTURE MINIMUM RENTAL INCOME
FUTURE MINIMUM RENTAL INCOME | 12 Months Ended |
Dec. 31, 2015 | |
Minimum Rents [Abstract] | |
FUTURE MINIMUM RENTAL INCOME | 5. FUTURE MINIMUM RENTAL INCOME Operating Leases The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of December 31, 2015, the leases at the Company’s properties have remaining terms (excluding options to extend) of up to 20 years with a weighted-average remaining term (excluding options to extend) of 5 years. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit and/or a letter of credit. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $ 175,000 437,000 2016 $ 7,043,000 2017 6,154,000 2018 5,070,000 2019 4,461,000 2020 3,680,000 Thereafter 7,365,000 $ 33,773,000 |
ACQUIRED LEASE INTANGIBLES AND
ACQUIRED LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Intangibles [Abstract] | |
ACQUIRED LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES | 6. ACQUIRED LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES As of December 31, 2015 and 2014, the Company’s acquired lease intangibles and below-market lease liabilities were as follows: Lease Intangibles Below - Market Lease Liabilities December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Cost $ 8,089,000 $ 20,898,000 $ (4,463,000) $ (6,991,000) Accumulated amortization (3,799,000) (7,240,000) 1,160,000 1,450,000 $ 4,290,000 $ 13,658,000 $ (3,303,000) $ (5,541,000) Lease Intangibles Below - Market Lease Liabilities For the Years Ended December 31, For the Years Ended December 31, 2015 2014 2015 2014 Amortization $ (1,510,000) $ (2,791,000) $ 365,000 $ 520,000 Acquired Below-Market Lease Lease Intangibles Intangibles 2016 $ 918,000 $ (274,000) 2017 772,000 (243,000) 2018 652,000 (221,000) 2019 589,000 (212,000) 2020 483,000 (207,000) Thereafter 876,000 (2,146,000) $ 4,290,000 $ (3,303,000) |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS, NET | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expense and Other Assets [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | 7. PREPAID EXPENSES AND OTHER ASSETS, NET December 31, 2015 December 31, 2014 Sales tax rebate incentive, net of accumulated amortization $ 29,000 $ 672,000 Prepaid expenses 194,000 593,000 Tenant lease incentive - 60,000 Utility deposits and other 508,000 38,000 $ 731,000 $ 1,363,000 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2015 | |
Debt [Abstract] | |
NOTES PAYABLE | 8. NOTES PAYABLE Principal Balance Interest Rates At December 31, 2015 December 31, 2014 December 31, 2015 KeyBank credit facility $ - $ 19,014,000 n/a Secured term loans 24,701,000 57,116,000 5.10 % Mortgage loans 9,690,000 44,768,000 5.63 % Unsecured loans - 1,250,000 n/a Total $ 34,391,000 $ 122,148,000 During the years ended December 31, 2015 and 2014, the Company incurred $ 5,459,000 8,983,000 544,000 747,000 As of December 31, 2015 and 2014, interest expense payable was $ 199,000 1,080,000 The following is a schedule of future principal payments for all of the Company’s notes payable outstanding as of December 31, 2015: Amount 2016 $ 578,000 2017 9,985,000 2018 473,000 2019 23,355,000 2020 - Thereafter - $ 34,391,000 KeyBank Amended and Restated Credit Facility Agreement On August 4, 2014, the Company entered into an Amended and Restated Revolving Credit Facility with KeyBank to amend and restate the 2010 Credit Facility (defined below) in its entirety and to establish a revolving credit facility with an initial maximum aggregate commitment of $ 30,000,000 60,000,000 The Amended and Restated Credit Facility matures on August 4, 2017. The Company has the right to prepay the Amended and Restated Credit Facility in whole at any time or in part from time to time, subject to the payment of certain expenses, costs or liabilities potentially incurred by the lenders as a result of the prepayment and subject to certain other conditions contained in the loan documents. Each loan made pursuant to the Amended and Restated Credit Facility will be either a LIBOR rate loan or a base rate loan, at the election of the Company, plus an applicable margin, as defined. Monthly payments are interest only with the entire principal balance and all outstanding interest due at maturity. The Company will pay KeyBank an unused commitment fee, quarterly in arrears, which will accrue at 0.30% per annum if the usage under the Amended and Restated Credit Facility is less than or equal to 50% of the Facility Amount, and 0.20% per annum if the usage under the Amended and Restated Credit Facility is greater than 50% of the Facility Amount. The Company is providing a guaranty of all of its obligations under the Amended and Restated Credit Facility and all other loan documents in connection with the Amended and Restated Credit Facility. The Company also paid Glenborough a financing coordination fee of $ 300,000 On August 4, 2014, as required by the Amended and Restated Credit Facility, the OP contributed 100 88 12 91.67 8.33 2,102,000 8.33 In connection with the Constitution Transaction, the entire outstanding note payable balance due to Constitution Trail’s prior lender was fully paid, and the new outstanding principal balance of the Amended and Restated Credit Facility was $ 20,800,000 On October 29, 2015, the Company drew $ 4.0 4.0 In connection with the sale of Constitution Trail and Aurora Commons to the SGO Joint Venture on March 11, 2015 (see Note 4. “Investments in Unconsolidated Joint Ventures”), the Company used a portion of the net proceeds from the sale of Constitution Trail to pay off the entire $ 19 The original credit facility was entered into on December 17, 2010, between the Company, through its subsidiary, SRT Holdings, and KeyBank (and certain other lenders, collectively referred to as the “lenders,”) to establish a revolving credit facility with an initial maximum aggregate commitment of $ 35,000,000 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | 9. FAIR VALUE DISCLOSURES The Company believes the total carrying values reflected on its consolidated balance sheets reasonably approximate the fair values for cash and cash equivalents, restricted cash, tenant receivables, accounts payable and accrued expenses, and amounts due to affiliates due to their short-term nature, except for the Company’s notes payable, which are disclosed below. The fair value of the Company’s notes payable is estimated using a present value technique based on contractual cash flows and management’s observations of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. The Company significantly reduces the amount of judgment and subjectivity in its fair value determination through the use of cash flow inputs that are based on contractual obligations. Discount rates are determined by observing interest rates published by independent market participants for comparable instruments. The Company classifies these inputs as Level 2 inputs. At December 31, 2015 Carrying Value (1) Fair Value (2) Notes Payable $ 34,391,000 $ 35,099,000 At December 31, 2014 Carrying Value (1) Fair Value (2) Notes Payable $ 122,148,000 $ 123,511,000 (1) The carrying value of the Company’s notes payable represents outstanding principal as of December 31, 2015 and December 31, 2014. (2) The estimated fair value of the notes payable is based upon indicative market prices of the Company’s notes payable based on prevailing market interest rates. As part of the Company’s ongoing evaluation of the Company’s real estate portfolio, the Company estimates the fair value of its investments in real estate by obtaining outside independent appraisals on all of the properties. The appraised values are compared with the carrying values of its real estate portfolio to determine if there are indications of impairment. For the year ended December 31, 2015, the Company did not record any impairment losses. For the year ended December 31, 2014, the Company recorded impairment losses of $ 2,500,000 1,400,000 The appraised values of the two properties were based on third-party estimates, discounted cash flow analyses, and other market considerations. The appraised values used 11 10 10 8.5 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | 10. EQUITY Common Stock Under the Company’s Articles of Amendment and Restatement (the “Charter”), the Company has the authority to issue 400,000,000 0.01 22,222 200,000 111,111 1 22,222 22,222 111,111 8.00 On February 7, 2013, the Company terminated the Offering and ceased offering its securities. The Company sold 10,688,940 104,700,000 391,182 3,600,000 273,729 365,903 2,995,000 Common Units and Special Units The Company’s prior advisor, TNP Strategic Retail Advisor, LLC, invested $ 1,000 287,472 2.6 9.00 144,324 1.4 9.50 Pursuant to the Advisory Agreement, in April 2014 the Company caused the OP to issue to the Advisor a separate series of limited partnership interests of the OP in exchange for a capital contribution to the OP of $1,000 (the “Special Units”). The terms of the Special Units entitle the Advisor to (i) 15% of the Company’s net sale proceeds upon disposition of its assets after the Company’s stockholders receive a return of their investment plus a 7% cumulative, non-compounded rate of return or (ii) an equivalent amount in the event that the Company lists its shares of common stock on a national securities exchange or upon certain terminations of the Advisory Agreement after the Company’s stockholders are deemed to have received a return of their investment plus a 7% cumulative, non-compounded rate of return. The holders of Common Units, other than the Company and the holder of the Special Units, generally have the right to cause the OP to redeem all or a portion of their Common Units for, at the Company’s sole discretion, shares of the Company’s common stock, cash or a combination of both. If the Company elects to redeem Common Units for shares of common stock, the Company will generally deliver one share of common stock for each Common Unit redeemed. Holders of Common Units, other than the Company and the holders of the Special Units, may exercise their redemption rights at any time after one year following the date of issuance of their Common Units; provided, however, that a holder of Common Units may not deliver more than two redemption notices in a single calendar year and may not exercise a redemption right for less than 1,000 Common Units, unless such holder holds less than 1,000 Common Units, in which case, it must exercise its redemption right for all of its Common Units. Member Interests On July 9, 2013, SRT Manager made a cash investment of approximately $ 1.9 12 88 91.67 8.33 2.1 Preferred Stock The Charter authorizes the Company to issue 50,000,000 0.01 Share Redemption Program On April 1, 2015, the Company’s board of directors approved the reinstatement of the share redemption program (which had been suspended since January 15, 2013) and adopted an Amended and Restated Share Redemption Program (the “Amended and Restated SRP”). Under the Amended and Restated SRP, only shares submitted for repurchase in connection with the death or “qualifying disability” (as defined in the Amended and Restated SRP) of a stockholder are eligible for repurchase by the Company. The number of shares to be redeemed is limited to the lesser of (i) a total of $ 2,000,000 1,000,000 5 The redemption price for shares that are redeemed is 100 The Amended and Restated SRP provides that any request to redeem less than $ 5,000 The other material terms of the Amended and Restated SRP are consistent with the terms of the share redemption program that was in effect immediately prior to January 15, 2013. On August 7, 2015, the board of directors approved the amendment and restatement of the Amended and Restated SRP (the “Second Amended and Restated SRP” and, together with the Amended and Restated SRP, the “SRP”). Under the Second Amended and Restated SRP, the redemption date with respect to third quarter 2015 redemptions was November 10, 2015 or the next practicable date as our Chief Executive Officer determined so that redemptions with respect to the third quarter of 2015 were delayed until after the payment date for the Special Distribution. With this revision, stockholders who were to have 100 During the year ended December 31, 2015, the Company redeemed 205,495 1,392,000 Distributions Quarterly Distributions In order to qualify as a REIT, the Company is required to distribute at least 90 Under the terms of the Amended and Restated Credit Facility, the Company may pay distributions to its investors so long as the total amount paid does not exceed 100 Distribution Distribution Distribution Per Total Common Total Common Record Payable Common Stock / Stockholders Unit Holders Total Date Date Common Unit Distribution Distribution Distribution First Quarter 2015 3/31/2015 4/30/2015 $ 0.06 $ 658,000 $ 26,000 $ 684,000 Second Quarter 2015 6/30/2015 7/30/2015 $ 0.06 $ 654,000 26,000 680,000 Third Quarter 2015 9/30/2015 10/31/2015 $ 0.06 $ 654,000 26,000 680,000 Fourth Quarter 2015 12/31/2015 1/30/2016 $ 0.06 $ 661,000 25,000 686,000 $ 2,627,000 $ 103,000 $ 2,730,000 Distribution Distribution Distribution Per Total Common Total Common Record Payable Common Stock / Stockholders Unit Holders Total Date Date Common Unit Distribution Distribution Distribution First Quarter 2014 3/31/2014 4/30/2014 $ 0.05 $ 548,000 $ 22,000 $ 570,000 Second Quarter 2014 6/30/2014 7/30/2014 $ 0.06 658,000 26,000 684,000 Third Quarter 2014 9/30/2014 10/31/2014 $ 0.06 658,000 26,000 684,000 Fourth Quarter 2014 12/31/2014 1/30/2015 $ 0.06 658,000 26,000 684,000 $ 2,522,000 $ 100,000 $ 2,622,000 Special Distribution In June 2011, the Company acquired a debt obligation (the “Distressed Debt”) for $ 18 27.6 On August 7, 2015, the board of directors authorized the Special Distribution of $ 2,248,000 449,600 1,798,400 On November 4, 2015, the Company paid $ 450,000 273,729 1,798,000 108,000 Distribution Reinvestment Plan The Company adopted the DRIP to allow common stockholders to purchase additional shares of the Company’s common stock through the reinvestment of distributions, subject to certain conditions. The Company registered and reserved $ 100,000,000 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 11. EARNINGS PER SHARE Earnings per share (“EPS”) is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed after adjusting the basic EPS computation for the effect of potentially dilutive securities outstanding during the period. The effect of non-vested shares, if dilutive, is computed using the treasury stock method. The Company applies the two-class method for determining EPS as its outstanding shares of non-vested restricted stock are considered participating securities as dividend payments are not forfeited even if the underlying award does not vest. There is no unvested stock as of December 31, 2015. The Company’s excess of distributions over earnings related to participating securities are shown as a reduction in income (loss) attributable to common stockholders in the Company’s computation of EPS. For the Years Ended December 31, 2015 2014 Numerator - basic and diluted Net income (loss) from continuing operations $ 13,991,000 $ (11,948,000) Net income (loss) attributable to non-controlling interests 681,000 (709,000) Net income (loss) attributable to common shares 13,310,000 (11,239,000) Net income from discontinued operations - 3,059,000 Net loss attributable to non-controlling interests - (483,000) Net income (loss) attributable to common shares $ 13,310,000 $ (8,663,000) Denominator - basic and diluted Basic weighted average common shares 10,960,613 10,969,714 Effect of dilutive securities Common units (1) - - Diluted weighted average common shares 10,960,613 10,969,714 Basic earnings (loss) per common share Net income (loss) from continuing operations attributable to common shares $ 1.21 $ (1.02) Net income from discontinued operations attributable to common shares - 0.23 Net income (loss) attributable to common shares $ 1.21 $ (0.79) Diluted earnings (loss) per common share Net income (loss) from continuing operations attributable to common shares $ 1.21 $ (1.02) Net income from discontinued operations attributable to common shares - 0.23 Net income (loss) attributable to common shares $ 1.21 $ (0.79) (1) The effect of 431,986 |
INCENTIVE AWARD PLAN
INCENTIVE AWARD PLAN | 12 Months Ended |
Dec. 31, 2015 | |
Incentive Award Plan [Abstract] | |
INCENTIVE AWARD PLAN | 12. INCENTIVE AWARD PLAN The Company adopted an incentive award plan on July 7, 2009 (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award Plan authorizes the grant of non-qualified and incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and other stock-based awards or cash-based awards. The Company has reserved 2,000,000 Pursuant to the Company’s Amended and Restated Independent Directors Compensation Plan, which is a sub-plan of the Incentive Award Plan (the “Directors Plan”), the Company granted each of its independent directors an initial grant of 5,000 2,000,000 2,500 For the years ended December 31, 2015 and 2014, the Company recognized compensation expense of $ 0 18,000 As of December 31, 2015 and 2014, all of the compensation expense related to non-vested shares of restricted common stock has been recognized. There were no restricted stock grants issued during the years ended December 31, 2015 and 2014. Weighted Average Restricted Stock Grant Date (Number of Shares) Fair Value Balance - December 31, 2013 3,333 $ 9.00 Granted - - Vested 3,333 9.00 Balance - December 31, 2014 - $ - Granted - - Vested Balance - December 31, 2015 - $ - |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | 13. RELATED PARTY TRANSACTIONS On August 7, 2013, the Company entered into the Advisory Agreement with Advisor. On August 3, 2015, the Advisory Agreement with the Advisor was renewed for an additional twelve months, beginning on August 10, 2015. Advisor manages the Company’s business as the Company’s external advisor pursuant to the Advisory Agreement. Pursuant to the Advisory Agreement, the Company will pay Advisor specified fees for services related to the investment of funds in real estate and real estate-related investments, management of the Company’s investments and for other services. On July 9, 2013, SRT Manager, an affiliate of Advisor, acquired an initial 12 8.33 2,102,000 8.33 On January 24, 2014, GPP purchased 22,222 111,111 8.00 On March 11, 2015, the Company, through a wholly-owned subsidiary, entered into the SGO Agreement to form the SGO Joint Venture. On September 30, 2015, the Company, through wholly-owned subsidiaries, entered into the SGO MN Agreement to form the SGO MN Joint Venture. For additional information regarding the SGO Joint Venture and the SGO MN Joint Venture, see Note 4. “Investments in Unconsolidated Joint Ventures.” Summary of Related Party Fees Advisor Fees Incurred Payable Years Ended December 31, As of December 31, 2015 2014 2015 2014 Expensed Acquisition fees $ 79,000 $ - $ - $ - Financing coordination fees 87,000 - - - Asset management fees 978,000 1,320,000 19,000 - Reimbursement of operating expenses 250,000 72,000 27,000 - Property management fees 612,000 857,000 3,000 - Disposition fees 1,173,000 268,000 - - Guaranty fees (1) 1,000 14,000 - 1,000 $ 3,180,000 $ 2,531,000 $ 49,000 $ 1,000 Capitalized Financing coordination fees $ - $ 300,000 $ - $ - Leasing fees 122,000 127,000 - - Legal leasing fees 124,000 222,000 - - Construction management fees 19,000 56,000 - - $ 265,000 $ 705,000 $ - $ - (1) Guaranty fees were paid by the Company to its prior advisor, TNP Strategic Retail Advisor, LLC. Acquisition Fee Under the Advisory Agreement, the Advisor is entitled to receive an acquisition fee equal to 1.0 Origination Fee Under the Advisory Agreement, the Advisor is entitled to receive an origination fee equal to 1.0 Financing Coordination Fee Under the Advisory Agreement, the Advisor is entitled to receive a financing coordination fee equal to 1 Asset Management Fee Under the Advisory Agreement, the Advisor is entitled to receive an asset management fee equal to a monthly fee of one-twelfth (1/12th) of 0.6 250,000 Reimbursement of Operating Expenses The Company or the OP will pay directly, or reimburse the Advisor for, certain third-party expenses paid or incurred by the Advisor in connection with the services provided by the Advisor pursuant to the Advisory Agreement, subject to the limitation that the Company will not reimburse the Advisor at the end of any fiscal quarter in which the Company’s total operating expenses (including the asset management fee described below) for the four preceding fiscal quarters exceed the greater of (1) 2% of its average invested assets (as defined in the Charter); or (2) 25% of its net income (as defined in the Charter) determined without reduction for any additions to depreciation, bad debts or other similar non-cash expenses and excluding any gain from the sale of the Company’s assets for that period (the “2%/25% Guideline”). The Advisor is required to reimburse the Company quarterly for any amounts by which total operating expenses exceed the 2%/25% Guideline in the previous expense year unless (i) the Company elects to subtract the excess amount from the “total operating expenses” for the subsequent fiscal quarter, or (ii) the independent directors determine that the excess expenses are justified based on unusual and nonrecurring factors which they deem sufficient. If the independent directors determine that the excess expenses are justified, the excess amount may be carried over and included in “total operating expenses” in subsequent expense years and the Company will send its stockholders written disclosure, together with an explanation of the factors the independent directors considered in making such a determination. The determination will also be reflected in the minutes of the board of directors. The Company will not reimburse the Advisor for any of its personnel costs or other overhead costs except for customary reimbursements for personnel costs under property management agreements entered into between the OP and the Advisor or its affiliates. In addition, under the Advisory Agreement, to the extent that that the Advisor or any affiliate receives fees from any of the Company’s subsidiaries for services rendered to such subsidiary, then the amount of such fees will be offset against any amounts due to the Advisor for the same services. For the years ended December 31, 2015 and 2014, the Company’s total operating expenses (as defined in the Charter) did not exceed the 2%/25% Guideline. Property Management Fee Under the property management agreements between the Company and Glenborough, Glenborough is entitled to receive an annual property management fee equal to 4 Disposition Fee Under the Advisory Agreement, the Advisor is entitled to receive a disposition fee of up to 50.0 3.0 Leasing Fee Under the property management agreements between the Company and Glenborough, Glenborough is entitled to receive a market-based leasing fee for the leases of new tenants, and for expansions, extensions and renewals of existing tenants. Legal Leasing Fee Under the property management agreements between the Company and Glenborough, Glenborough is entitled to receive a market-based legal leasing fee for the negotiation and production of new leases, renewals and amendments. Guaranty Fee In connection with certain acquisition financings, the Company’s former chairman and former co-chief executive officer and/or TNP LLC had executed certain guaranty agreements to the respective lenders. As consideration for such guaranty, the Company entered into a reimbursement and fee agreement to provide for an upfront payment and an annual guaranty fee payment for the duration of the guarantee period. In March 2015, the Company retired the outstanding notes payable related to Osceola Village resulting in the expiration of the remaining guaranty agreement. Construction Management Fee Under the property management agreements between the Company and Glenborough, in connection with coordinating and facilitating all construction, including all maintenance, repairs, capital improvements, common area refurbishments and tenant improvements, on a project-by-project basis, Glenborough is entitled to receive a construction management fee equal to 5.0 Related-Party Fees Paid by the Unconsolidated Joint Ventures The unconsolidated joint ventures are party to certain agreements with Glenborough for services related to the investment of funds and management of the joint ventures’ investments, as well as the day-to-day management, operation and maintenance of the properties owned by the joint ventures. The joint ventures pay fees to Glenborough for these services. The SGO Joint Venture recognized related-party fees and reimbursements of approximately $ 356,000 226,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Economic Dependency The Company is dependent on the Advisor and its affiliates for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase, and disposition of real estate and real estate-related investments, management of the daily operations of the Company’s real estate and real estate-related investment portfolio, and other general and administrative responsibilities. In the event that the Advisor is unable to provide such services to the Company, the Company will be required to obtain such services from other sources. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. Legal Matters The following disclosure summarizes material pending legal proceedings to which we are a party, as well as material legal proceedings that terminated during the three months ended December 31, 2015. Securities Litigation On or about September 23, 2013, a civil action captioned Stephen Drews v. TNP Strategic Retail Trust, Inc., et al. Lewis Booth, et al. v. Strategic Realty Trust, Inc., et al. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Distributions On January 30, 2016, the Company paid a fourth quarter distribution in the amount of $ 0.06 684,000 Gelson’s Development Joint Venture On January 7, 2016, the Company (which may be referred to herein as the “Registrant,” “we,” “our” or “us”), through wholly-owned subsidiaries, entered into the Limited Liability Company Agreement of Sunset & Gardner Investors, LLC (the “Gelson’s Joint Venture Agreement”) to form a joint venture with Sunset & Gardner LA, LLC (“S&G LA” and together with us the “Gelson’s Members”), a subsidiary of Cadence Capital Investments, LLC (“Cadence”). Cadence is a real estate development and investment firm focused on commercial properties. They offer high-quality, market-driven developments, and have expertise in market planning and site selection build to suit and small center developments, redevelopment and repositioning of existing properties. The Gelson’s Joint Venture Agreement provides for the ownership and operation of certain real property by Sunset & Gardner Investors, LLC (the “Gelson’s Joint Venture”), in which the Company owns a 100 50 $ 7 700,000 20 On January 28, 2016, the Gelson’s Joint Venture used the capital contributions of the Company, together with the proceeds of a loan from Buchanan Mortgage Holdings, LLC in the amount of $ 10,700,000 12,950,000 38,000 Pursuant to the Gelson’s Joint Venture Agreement, S&G LA will manage and conduct the day-to-day operations and affairs of the Gelson’s Joint Venture, subject to certain major decisions set forth in the Gelson’s Joint Venture Agreement that require the consent of all the Gelson’s Members. Income, losses and distributions will generally be allocated based on the Gelson’s Members’ respective capital and profits interests. Additionally, in certain circumstances described in the Gelson’s Joint Venture Agreement, the Company may be required to make additional capital contributions to the Joint Venture, in proportion to the Gelson’s Members’ respective ownership interests. Until the Company has received back its capital contribution all distributions go to the Company; thereafter, the Gelson’s Joint Venture will distribute the profits 50 50 The Company is currently evaluating the appropriate accounting treatment for the Gelson’s Joint Venture. 3032 Wilshire Joint Venture On March 7, 2015, the Company contributed $ 5,700,000 100 50 On March 8, 2016, the Wilshire Joint Venture used the capital contributions of the Company, together with the proceeds of a loan from Buchanan Mortgage Holdings, LLC in the amount of $ 8,500,000 13,500,000 Pursuant to the Wilshire Joint Venture Agreement, 3032 Wilshire SM will manage and conduct the day-to-day operations and affairs of the Wilshire Joint Venture, subject to certain major decisions set forth in the Wilshire Joint Venture Agreement that require the consent of all the Wilshire Members. Income, losses and distributions will generally be allocated based on the Wilshire Members’ respective capital and profits interests. Additionally, in certain circumstances described in the Wilshire Joint Venture Agreement, the Company may be required to make additional capital contributions to the Wilshire Joint Venture, in proportion to the Wilshire Members’ respective ownership interests. Until the Company has received back its capital contribution all distributions go to the Company; thereafter, the Wilshire Joint Venture will distribute the profits 50 50 The Company is currently evaluating the appropriate accounting treatment for the Wilshire Joint Venture. |
SCHEDULE III - REAL ESTATE OPER
SCHEDULE III - REAL ESTATE OPERATING PROPERTIES AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2015 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III - REAL ESTATE OPERATING PROPERTIES AND ACCUMULATED DEPRECIATION | Strategic Realty Trust, Inc. and Subsidiaries DEPRECIATION December 31, 2015 Life on which Depreciation in Latest Gross Amount at Which Carried at Close of Statement of Initial Cost to Company Cost Capitalized Period Operations Building & Subsequent to Building & Accumulated Acquisition is Computed Encumbrances Land Improvements Acquisition (1) Land Improvements Total (2) Depreciation Date (3) Pinehurst Square East $ - $ 3,270,000 $ 10,450,000 $ 320,000 $ 3,270,000 $ 10,770,000 $ 14,040,000 (1,743,000) 5/26/2011 5 - 30 Cochran Bypass 1,513,000 776,000 1,480,000 30,000 776,000 1,510,000 2,286,000 (372,000) 7/14/2011 5 - 30 Topaz Marketplace - 2,120,000 10,724,000 (1,553,000) 1,900,000 9,391,000 11,291,000 (1,133,000) 9/23/2011 5 - 30 Morningside Marketplace 8,629,000 6,515,000 9,936,000 (5,403,000) 2,339,000 8,709,000 11,048,000 (1,399,000) 1/9/2012 5 - 30 Woodland West Marketplace 9,690,000 2,376,000 10,494,000 463,000 2,448,000 10,885,000 13,333,000 (1,903,000) 2/3/2012 5 - 30 Ensenada Square 2,992,000 1,015,000 3,822,000 235,000 1,015,000 4,057,000 5,072,000 (741,000) 2/27/2012 5 - 30 Shops at Turkey Creek 2,708,000 1,416,000 2,398,000 (132,000) 1,416,000 2,266,000 3,682,000 (296,000) 3/12/2012 5 - 30 Florissant Marketplace 8,859,000 2,817,000 12,273,000 (27,000) 2,817,000 12,246,000 15,063,000 (2,481,000) 5/16/2012 5 - 30 Total $ 34,391,000 $ 20,305,000 $ 61,577,000 $ (6,067,000) $ 15,981,000 $ 59,834,000 $ 75,815,000 $ (10,068,000) (1) The cost capitalized subsequent to acquisition may include negative balances resulting from the write-off and impairment of real estate assets, and parcel sales. (2) The aggregate net tax basis of land and buildings for federal income tax purposes is $ 68,374,665 (3) Buildings and building improvements are depreciated over their useful lives as shown. Tenant improvements are amortized over the life of the related lease, which with our current portfolio can vary from 1 30 For the Years Ended December 31, 2015 2014 Real Estate: Balance at the beginning of the year $ 166,005,000 $ 174,135,000 Acquisitions - - Improvements 472,000 1,356,000 Dispositions (80,754,000) (22,613,000) Impairment - (3,900,000) Balances associated with changes in reporting presentation (1) (9,908,000) 17,027,000 Balance at the end of the year $ 75,815,000 $ 166,005,000 Accumulated Depreciation: Balance at the beginning of the year $ 16,717,000 $ 12,009,000 Depreciation expense 3,502,000 5,546,000 Dispositions (9,260,000) (839,000) Balances associated with changes in reporting presentation (1) (891,000) 1,000 Balance at the end of the year $ 10,068,000 $ 16,717,000 (1) The balances associated with changes in reporting presentation represent real estate and accumulated depreciation reclassified as assets held for sale. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-K and Regulation S-X. The consolidated financial statements include the accounts of the Company, the OP, and their direct and indirect owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been included. The Company evaluates the need to consolidate joint ventures and variable interest entities based on standards set forth in ASC 810, Consolidation |
Non-Controlling Interests | Non-Controlling Interests The Company’s non-controlling interests are comprised primarily of common units in the OP (“Common Units”) and, until its redemption on March 12, 2015, the membership interest in SRT Secured Holdings, LLC (“Secured Holdings”), one of the Company’s subsidiaries. The Company accounts for non-controlling interests in accordance with ASC 810. In accordance with ASC 810, the Company reports non-controlling interests in subsidiaries within equity in the consolidated financial statements, but separate from stockholders’ equity. Net income (loss) attributable to non-controlling interests is presented as a reduction from net income (loss) in calculating net income (loss) attributable to common stockholders on the consolidated statement of operations. Acquisitions or dispositions of non-controlling interests that do not result in a change of control are accounted for as equity transactions. In addition, ASC 810 requires that a parent company recognize a gain or loss in the Company’s results of operations when a subsidiary is deconsolidated upon a change in control. In accordance with ASC 480-10, Distinguishing Liabilities from Equity |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements requires significant management judgments, assumptions and estimates about matters that are inherently uncertain. These judgments affect the reported amounts of assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in the Company’s consolidated financial statements, and actual results could differ from the estimates or assumptions used by management. Additionally, other companies may utilize different estimates that may impact the comparability of the Company’s consolidated results of operations to those of companies in similar businesses. The Company considers significant estimates to include the carrying amounts and recoverability of investments in real estate, impairments, real estate acquisition purchase price allocations, allowance for doubtful accounts, estimated useful lives to determine depreciation and amortization and fair value determinations, among others. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represents current bank accounts and other bank deposits free of encumbrances and having maturity dates of three months or less from the respective dates of deposit. The Company limits cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk in cash. |
Restricted Cash | Restricted Cash Restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, debt service and leasing costs held by lenders. |
Revenue Recognition | Revenue Recognition Revenues include minimum rents, expense recoveries and percentage rental payments. Minimum rents are recognized on an accrual basis over the terms of the related leases on a straight-line basis when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased property. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. For leases with minimum scheduled rent increases, the Company recognizes income on a straight-line basis over the lease term when collectability is reasonably assured. Recognizing rental income on a straight-line basis for leases results in recognized revenue amounts which differ from those that are contractually due from tenants on a cash basis. If the Company determines the collectability of straight-line rents is not reasonably assured, the Company limits future recognition to amounts contractually owed and paid, and, when appropriate, establishes an allowance for estimated losses. The Company maintains an allowance for doubtful accounts, including an allowance for straight-line rent receivables, for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments. The Company monitors the liquidity and creditworthiness of its tenants on an ongoing basis. For straight-line rent amounts, the Company’s assessment is based on amounts estimated to be recoverable over the term of the lease. The Company’s straight-line rent receivable which is included in tenant receivables, net, on the consolidated balance sheets, was $ 592,000 1,681,000 Certain leases contain provisions that require the payment of additional rents based on the respective tenants’ sales volume (contingent or percentage rent) and substantially all contain provisions that require reimbursement of the tenants’ allocable real estate taxes, insurance and common area maintenance costs (“CAM”). Revenue based on percentage of tenants’ sales is recognized only after the tenant exceeds its sales breakpoint. Revenue from tenant reimbursements of taxes, insurance and CAM is recognized in the period that the applicable costs are incurred in accordance with the lease agreement. The Company recognizes gains or losses on sales of real estate in accordance with ASC 360, Property, Plant, and Equipment 1.2 |
Valuation of Accounts Receivables | Valuation of Accounts Receivable The Company makes estimates of the collectability of its tenant receivables related to base rents, including deferred rents receivable, expense reimbursements and other revenue or income. The Company analyzes tenant receivables, deferred rent receivable, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In addition, with respect to tenants in bankruptcy, the Company will make estimates of the expected recovery of pre-petition and post-petition claims in assessing the estimated collectability of the related receivable. In some cases, the ultimate resolution of these claims can exceed one year. When a tenant is in bankruptcy, the Company will record a bad debt reserve for the tenant’s receivable balance and generally will not recognize subsequent rental revenue until cash is received or until the tenant is no longer in bankruptcy and has the ability to make rental payments. |
Concentration of Credit Risk | Concentration of Credit Risk A concentration of credit risk arises in the Company’s business when a nationally or regionally-based tenant occupies a substantial amount of space in multiple properties owned by the Company. In that event, if the tenant suffers a significant downturn in its business, it may become unable to make its contractual rent payments to the Company, exposing the Company to potential losses in rental revenue, expense recoveries, and percentage rent. Generally, the Company does not obtain security deposits from the nationally-based or regionally-based tenants in support of their lease obligations to the Company. The Company regularly monitors its tenant base to assess potential concentrations of credit risk. As of December 31, 2015, excluding 10 33,000 |
Business Combinations | Business Combinations The Company records the acquisition of income-producing real estate or real estate that will be used for the production of income as a business combination when the acquired property meets the definition of a business. Assets acquired and liabilities assumed in a business combination are generally measured at their acquisition-date fair values, including tenant improvements and identifiable intangible assets or liabilities. Tenant improvements recognized represent the tangible assets associated with the existing leases valued on a fair value basis at the acquisition date. Tenant improvements are classified as assets under investments in real estate and are depreciated over the remaining lease terms. Identifiable intangible assets and liabilities relate to the value of in-place operating leases which come in three forms: (1) leasing commissions and legal costs, which represent the value associated with “cost avoidance” of acquiring in-place leases, such as lease commissions paid under terms generally experienced in markets in which the Company operates; (2) value of in-place leases, which represents the estimated loss of revenue and of costs incurred for the period required to lease the “assumed vacant” property to the occupancy level when purchased; and (3) above- or below-market value of in-place leases, which represents the difference between the contractual rents and market rents at the time of the acquisition, discounted for tenant credit risks. The value of in-place leases is recorded in acquired lease intangibles and amortized over the remaining lease term. Above- or below-market-rate leases are classified in acquired lease intangibles, or in acquired below-market lease intangibles, depending on whether the contractual terms are above- or below-market. Above-market leases are amortized as a decrease to rental revenue over the remaining non-cancelable terms of the respective leases and below-market leases are amortized as an increase to rental revenue over the remaining initial lease term and any fixed rate renewal periods, if applicable. Acquisition costs are expensed as incurred. During the years ended December 31, 2015 and 2014, the Company did not acquire any properties. Costs incurred in pursuit of targeted properties for acquisitions not yet closed or those determined to no longer be viable and costs incurred which are expected to result in future period disposals of property not currently classified as held for sale properties have been expensed and are also classified in the consolidated statements of operations as transaction expenses. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, and the number of years the property will be held for investment. The use of inappropriate assumptions would result in an incorrect valuation of the Company’s acquired tangible assets, identifiable intangibles and assumed liabilities, which would impact the amount of the Company’s results of operations. These allocations also impact depreciation expense, amortization expense and gains or losses recorded on future sales of properties. |
Reportable Segments | Reportable Segments ASC 280, Segment Reporting |
Investments in Real Estate | Investments in Real Estate Real property is recorded at estimated fair value at time of acquisition with subsequent additions at cost, less accumulated depreciation and amortization. Costs include those related to acquisition, development and construction, including tenant improvements, interest incurred during development, costs of pre-development and certain direct and indirect costs of development. Years Buildings and improvements 5 30 Tenant improvements 1 36 Tenant improvement costs recorded as capital assets are depreciated over the tenant’s remaining lease term which the Company has determined approximates the remaining useful life of the improvement. Expenditures for ordinary maintenance and repairs are expensed to operations as incurred. Significant renovations and improvements that improve or extend the useful lives of assets are capitalized. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its investments in real estate and related intangible assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of the real estate and related intangible assets through its undiscounted future cash flows (excluding interest) and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the investments in real estate and related intangible assets. Key inputs that the Company estimates in this analysis include projected rental rates, capital expenditures, property sale capitalization rates, and expected holding period of the property. The Company evaluates its equity investments for impairment in accordance with ASC 320, Investments Debt and Securities The Company did not record any impairment losses for the year ended December 31, 2015. For the year ended December 31, 2014, the Company recorded impairment losses of $ 2,500,000 1,400,000 |
Assets Held-for-Sale and Discontinued Operations | Assets Held for Sale and Discontinued Operations When certain criteria are met, long-lived assets are classified as held for sale and are reported at the lower of their carrying value or their fair value, less costs to sell, and are no longer depreciated. For property sales prior to May 1, 2014, discontinued operations is a component of an entity that has either been disposed of or is deemed to be held for sale and (i) the operations and cash flows of the component have been eliminated from ongoing operations as a result of the disposal transaction and (ii) the entity does not have any significant continuing involvement in the operations of the component after the disposal transaction. For property sales on or after May 1, 2014, a disposal of a component of an entity is required to be reported as discontinued operations only if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. See Note 3. “Real Estate Investments” for a discussion of property sales and discontinued operations. |
Fair Value Measurements | Fair Value Measurements Under GAAP, the Company is required to measure or disclose certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available for inputs that are significant to the fair value measurement. When available, the Company utilizes quoted market prices or other observable inputs (Level 2 inputs), such as interest rates or yield curves, from independent third-party sources to determine fair value and classify such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to use significant judgment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third-party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for an asset owned by it to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and external appraisals Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The Company considers the following factors to be indicators of an inactive market: (1) there are few recent transactions; (2) price quotations are not based on current information; (3) price quotations vary substantially either over time or among market makers (for example, some brokered markets); (4) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability; (5) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability; (6) there is a wide bid-ask spread or significant increase in the bid-ask spread; (7) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities; and (8) little information is released publicly (for example, a principal-to-principal market). The Company considers the following factors to be indicators of non-orderly transactions: (1) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions; (2) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant; (3) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced); and (4) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs represent commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing. These costs are amortized over the terms of the respective financing agreements using the straight-line method which approximates the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financings that do not close are expensed in the period in which it is determined that the financing will not close. |
Interest in Unincorporated Joint Ventures or Partnerships, Policy [Policy Text Block] | Accounting for Investments in Unconsolidated Joint Ventures The Company accounts for its current investments in joint ventures under the equity method of accounting. Under the equity method of accounting, the Company records its initial investment in a joint venture at cost and subsequently adjusts the cost for the Company’s share of the joint venture’s income or loss and cash contributions and distributions each period. See Note 4. “Investments in Unconsolidated Joint Ventures” for a discussion of the Company’s investments in joint ventures. The Company monitors its investments in unconsolidated joint ventures periodically for impairment. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT under the Internal Revenue Code. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90 The Company evaluates tax positions taken in the consolidated financial statements under the interpretation for accounting for uncertainty in income taxes. As a result of this evaluation, the Company may recognize a tax benefit from an uncertain tax position only if it is “more-likely-than-not” that the tax position will be sustained on examination by taxing authorities. When necessary, deferred income taxes are recognized in certain taxable entities. Deferred income tax is generally a function of the period’s temporary differences (items that are treated differently for tax purposes than for financial reporting purposes). A valuation allowance for deferred income tax assets is provided if all or some portion of the deferred income tax asset may not be realized. Any increase or decrease in the valuation allowance is generally included in deferred income tax expense. The Company’s tax returns remain subject to examination and consequently, the taxability of the distributions is subject to change. During the current year, the Company was subject to alternative minimum state/federal taxes totaling approximately $ 200,000 |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed after adjusting the basic EPS computation for the effect of potentially dilutive securities outstanding during the period. The effect of non-vested shares, if dilutive, is computed using the treasury stock method. The Company accounts for non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) as participating securities, which are included in the computation of earnings per share pursuant to the two-class method. The Company’s excess of distributions over earnings related to participating securities are shown as a reduction in income (loss) attributable to common stockholders in the Company’s computation of EPS. |
Reclassification | Reclassification Assets sold or held for sale and related liabilities have been reclassified on the consolidated balance sheets. For operating properties sold prior to May 1, 2014, |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements Going Concern In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs Interest Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805 Simplifying the Accounting for Measurement-Period Adjustments In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Depreciation and amortization | Depreciation and amortization is computed using a straight-line method over the estimated useful lives of the assets as follows: Years Buildings and improvements 5 30 Tenant improvements 1 36 |
REAL ESTATE INVESTMENTS (Tables
REAL ESTATE INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate Investments, Net [Abstract] | |
Real Estate Properties Sales Price | During the year ended December 31, 2015, the Company sold the following six properties: Gross Original Property Location Acquisition Date Sale Date Sale Price Purchase Price (1) Osceola Village Kissimmee, FL 10/11/2011 3/11/2015 $ 22,000,000 $ 21,800,000 (2) Constitution Trail Normal, IL 10/21/2011 3/11/2015 23,100,000 18,000,000 Aurora Commons Aurora, OH 3/20/2012 3/11/2015 8,500,000 7,000,000 Moreno Marketplace Moreno Valley, CA 11/19/2009 10/29/2015 19,400,000 12,500,000 Northgate Plaza Tuczon, AZ 7/6/2010 10/29/2015 12,800,000 8,050,000 Summit Point Fayetteville, GA 12/21/2011 10/30/2015 19,600,000 18,250,000 $ 105,400,000 $ 85,600,000 (1) The original purchase price amounts do not include acquisition fees. (2) The original purchase price for Osceola Village included an additional pad which was sold for $ 875,000 |
Real Estate Investments Pro Forma Financial Information | Moreno, Northgate SGO Properties Summit Dispositions Pro Forma Year Ended Disposition Pro Forma Year Ended December 31, 2015 Pro Forma Adjustments Adjustments December 31, 2015 Rental and reimbursements $ 16,047,000 $ (1,058,000) $ (3,558,000) $ 11,431,000 Income (loss) from continuing operations $ 13,991,000 $ (4,448,000) $ (15,649,000) $ (6,106,000) Net income (loss) $ 13,991,000 $ (4,448,000) $ (15,649,000) $ (6,106,000) Net income (loss) available to common shareholders $ 13,310,000 $ (4,280,000) $ (15,649,000) $ (6,619,000) Weighted average shares outstanding 10,960,613 10,960,613 Net earnings (loss) per share attributable to common stockholders - basic and diluted $ 1.21 $ (0.60) Moreno, Northgate SGO Properties Summit Dispositions Pro Forma Year Ended Disposition Pro Forma Year Ended December 31, 2014 Pro Forma Adjustments Adjustments December 31, 2014 Rental and reimbursements $ 21,703,000 $ (5,127,000) $ (4,314,000) $ 12,262,000 Income (loss) from continuing operations $ (11,948,000) $ 4,893,000 $ 303,000 $ (6,752,000) Net income (loss) $ (8,889,000) $ 4,893,000 $ 303,000 $ (3,693,000) Net income (loss) available to common stockholders $ (8,663,000) $ 4,707,000 $ 303,000 $ (3,653,000) Weighted avergae shares outstanding 10,969,714 10,969,714 Net earnings (loss) per share attributable to common stockholders - basic and diluted $ (0.79) $ (0.33) |
Components Of Income And Expense Relating To Discontinued Operations | The components of income and expense relating to discontinued operations for the year ended December 31, 2014 are shown below. Year Ended December 31, 2014 Revenues from rental property $ 62,000 Rental property expenses 75,000 Interest expense 12,000 Operating loss from discontinued operations (25,000) Gain on disposal of real estate 3,084,000 Income (loss) from discontinued operations $ 3,059,000 |
Assets And Liabilities Held For Sale | The major classes of assets and liabilities related to assets held for sale included in the consolidated balance sheets are as follows: December 31, 2015 2014 ASSETS Investments in real estate Land $ 4,718,000 $ 342,000 Building and improvements 4,697,000 - Tenant improvements 499,000 - 9,914,000 342,000 Accumulated depreciation (891,000) - Investments in real estate, net 9,023,000 342,000 Lease intangibles, net 694,000 - Deferred financing costs, net 127,000 - Tenant receivables, net 36,000 - Prepaid expenses 16,000 - Assets held for sale $ 9,896,000 $ 342,000 LIABILITIES Notes payable $ 5,395,000 $ - Below market lease intangibles, net 1,625,000 - Other liabilities 16,000 - Liabilities related to assets held for sale $ 7,036,000 $ - |
INVESTMENTS IN UNCONSOLIDATED26
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investment in Unconsolidated Joint Ventures | The following table summarizes the Company’s investments in unconsolidated joint ventures as of December 31, 2015: Joint Venture Date ofI Ownership Investment SGO Retail Acquisitions Venture, LLC 3/11/2015 19 % $ 4,098,000 SGO MN Retail Acquisitions Venture, LLC 9/30/2015 10 % 2,804,000 Total $ 6,902,000 |
Equity Method Investments | A summary of the Company’s equity method investments in the SGO Joint Venture and the SGO MN Joint Venture, and share of income/loss from such investments, is presented below: December 31, 2015 ASSETS Investments in real estate, net $ 110,901,000 Other assets 28,570,000 Total assets $ 139,471,000 LIABILITIES AND MEMBERS' CAPITAL Notes payable 75,632,000 Other liabilities 14,229,000 Total liabilities 89,861,000 Members' capital 49,610,000 Total liabilities and members' capital $ 139,471,000 For the Period Ended December 31, 2015 RESULTS OF OPERATIONS Revenues $ 7,372,000 Expenses (9,222,317) Operating loss (1,850,317) Other income 36,000 Net income $ (1,814,317) |
FUTURE MINIMUM RENTAL INCOME (T
FUTURE MINIMUM RENTAL INCOME (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum Rents [Abstract] | |
Schedule of Future Minimum Rental Receivable For Operating Leases | As of December 31, 2015, the future minimum rental income from the Company’s properties, other than the held for sale properties, under non-cancelable operating leases was as follows: 2016 $ 7,043,000 2017 6,154,000 2018 5,070,000 2019 4,461,000 2020 3,680,000 Thereafter 7,365,000 $ 33,773,000 |
ACQUIRED LEASE INTANGIBLES AN28
ACQUIRED LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangibles [Abstract] | |
Acquired Lease Intangibles and Below Market Lease Liabilities | As of December 31, 2015 and 2014, the Company’s acquired lease intangibles and below-market lease liabilities were as follows: Lease Intangibles Below - Market Lease Liabilities December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Cost $ 8,089,000 $ 20,898,000 $ (4,463,000) $ (6,991,000) Accumulated amortization (3,799,000) (7,240,000) 1,160,000 1,450,000 $ 4,290,000 $ 13,658,000 $ (3,303,000) $ (5,541,000) |
Increases Decreases In Net Income As Result Of Amortization Of Acquired Lease Intangibles | The Company’s amortization of lease intangibles and below-market lease liabilities for the years ended December 31, 2015 and 2014, were as follows: Lease Intangibles Below - Market Lease Liabilities For the Years Ended December 31, For the Years Ended December 31, 2015 2014 2015 2014 Amortization $ (1,510,000) $ (2,791,000) $ 365,000 $ 520,000 |
Schedule Of Future Amortization Of Acquired Lease Intangible And Below Market Lease Liabilities | The scheduled future amortization of lease intangibles and below-market lease liabilities, as of December 31, 2015, was as follows: Acquired Below-Market Lease Lease Intangibles Intangibles 2016 $ 918,000 $ (274,000) 2017 772,000 (243,000) 2018 652,000 (221,000) 2019 589,000 (212,000) 2020 483,000 (207,000) Thereafter 876,000 (2,146,000) $ 4,290,000 $ (3,303,000) |
PREPAID EXPENSES AND OTHER AS29
PREPAID EXPENSES AND OTHER ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expense and Other Assets [Abstract] | |
Scheduled of prepaid expenses and other assets | As of December 31, 2015 and 2014, the Company’s prepaid expenses and other assets, net consisted of the following: December 31, 2015 December 31, 2014 Sales tax rebate incentive, net of accumulated amortization $ 29,000 $ 672,000 Prepaid expenses 194,000 593,000 Tenant lease incentive - 60,000 Utility deposits and other 508,000 38,000 $ 731,000 $ 1,363,000 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt [Abstract] | |
Schedule Of Notes Payable | As of December 31, 2015 and 2014, the Company’s notes payable, excluding long-term debt which has been classified as held for sale, consisted of the following: Principal Balance Interest Rates At December 31, 2015 December 31, 2014 December 31, 2015 KeyBank credit facility $ - $ 19,014,000 n/a Secured term loans 24,701,000 57,116,000 5.10 % Mortgage loans 9,690,000 44,768,000 5.63 % Unsecured loans - 1,250,000 n/a Total $ 34,391,000 $ 122,148,000 |
Schedule of maturities for notes payable outstanding | The following is a schedule of future principal payments for all of the Company’s notes payable outstanding as of December 31, 2015: Amount 2016 $ 578,000 2017 9,985,000 2018 473,000 2019 23,355,000 2020 - Thereafter - $ 34,391,000 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Notes Payable | The following table provides the carrying values and fair values of the Company’s notes payable related to continuing operations as of December 31, 2015 and 2014: At December 31, 2015 Carrying Value (1) Fair Value (2) Notes Payable $ 34,391,000 $ 35,099,000 At December 31, 2014 Carrying Value (1) Fair Value (2) Notes Payable $ 122,148,000 $ 123,511,000 (1) The carrying value of the Company’s notes payable represents outstanding principal as of December 31, 2015 and December 31, 2014. (2) The estimated fair value of the notes payable is based upon indicative market prices of the Company’s notes payable based on prevailing market interest rates. |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Distributions declared and paid | Distribution Distribution Distribution Per Total Common Total Common Record Payable Common Stock / Stockholders Unit Holders Total Date Date Common Unit Distribution Distribution Distribution First Quarter 2015 3/31/2015 4/30/2015 $ 0.06 $ 658,000 $ 26,000 $ 684,000 Second Quarter 2015 6/30/2015 7/30/2015 $ 0.06 $ 654,000 26,000 680,000 Third Quarter 2015 9/30/2015 10/31/2015 $ 0.06 $ 654,000 26,000 680,000 Fourth Quarter 2015 12/31/2015 1/30/2016 $ 0.06 $ 661,000 25,000 686,000 $ 2,627,000 $ 103,000 $ 2,730,000 Distribution Distribution Distribution Per Total Common Total Common Record Payable Common Stock / Stockholders Unit Holders Total Date Date Common Unit Distribution Distribution Distribution First Quarter 2014 3/31/2014 4/30/2014 $ 0.05 $ 548,000 $ 22,000 $ 570,000 Second Quarter 2014 6/30/2014 7/30/2014 $ 0.06 658,000 26,000 684,000 Third Quarter 2014 9/30/2014 10/31/2014 $ 0.06 658,000 26,000 684,000 Fourth Quarter 2014 12/31/2014 1/30/2015 $ 0.06 658,000 26,000 684,000 $ 2,522,000 $ 100,000 $ 2,622,000 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Company's basic and diluted (loss)earnings per share | The following table sets forth the computation of the Company’s basic and diluted earnings (loss) per share: For the Years Ended December 31, 2015 2014 Numerator - basic and diluted Net income (loss) from continuing operations $ 13,991,000 $ (11,948,000) Net income (loss) attributable to non-controlling interests 681,000 (709,000) Net income (loss) attributable to common shares 13,310,000 (11,239,000) Net income from discontinued operations - 3,059,000 Net loss attributable to non-controlling interests - (483,000) Net income (loss) attributable to common shares $ 13,310,000 $ (8,663,000) Denominator - basic and diluted Basic weighted average common shares 10,960,613 10,969,714 Effect of dilutive securities Common units (1) - - Diluted weighted average common shares 10,960,613 10,969,714 Basic earnings (loss) per common share Net income (loss) from continuing operations attributable to common shares $ 1.21 $ (1.02) Net income from discontinued operations attributable to common shares - 0.23 Net income (loss) attributable to common shares $ 1.21 $ (0.79) Diluted earnings (loss) per common share Net income (loss) from continuing operations attributable to common shares $ 1.21 $ (1.02) Net income from discontinued operations attributable to common shares - 0.23 Net income (loss) attributable to common shares $ 1.21 $ (0.79) (1) The effect of 431,986 |
INCENTIVE AWARD PLAN (Tables)
INCENTIVE AWARD PLAN (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Incentive Award Plan [Abstract] | |
Granted and vested restricted stock | A summary of the changes in restricted stock grants for the years ended December 31, 2015 and 2014 is presented below. Weighted Average Restricted Stock Grant Date (Number of Shares) Fair Value Balance - December 31, 2013 3,333 $ 9.00 Granted - - Vested 3,333 9.00 Balance - December 31, 2014 - $ - Granted - - Vested Balance - December 31, 2015 - $ - |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
Summarized below are the related-party transactions | Summarized separately below are the Advisor related party costs incurred and payable by the Company for the years ended December 31, 2015 and 2014, respectively, and payable as of December 31, 2015 and 2014: Advisor Fees Incurred Payable Years Ended December 31, As of December 31, 2015 2014 2015 2014 Expensed Acquisition fees $ 79,000 $ - $ - $ - Financing coordination fees 87,000 - - - Asset management fees 978,000 1,320,000 19,000 - Reimbursement of operating expenses 250,000 72,000 27,000 - Property management fees 612,000 857,000 3,000 - Disposition fees 1,173,000 268,000 - - Guaranty fees (1) 1,000 14,000 - 1,000 $ 3,180,000 $ 2,531,000 $ 49,000 $ 1,000 Capitalized Financing coordination fees $ - $ 300,000 $ - $ - Leasing fees 122,000 127,000 - - Legal leasing fees 124,000 222,000 - - Construction management fees 19,000 56,000 - - $ 265,000 $ 705,000 $ - $ - (1) Guaranty fees were paid by the Company to its prior advisor, TNP Strategic Retail Advisor, LLC. |
ORGANIZATION AND BUSINESS (Deta
ORGANIZATION AND BUSINESS (Details Textual) - USD ($) | Feb. 07, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 04, 2008 |
Stock Issue Plans [Line Items] | ||||
Proceeds from issuance of common stock | $ 104,700,000 | |||
Special Distribution Shares Issued To Stockholders | 273,729 | |||
Organization and Business (Additional Textual) [Abstract] | ||||
Common stock, primary offering price | $ 10 | |||
Common Stock, Shares, Issued | 10,688,940 | 11,037,948 | 10,969,714 | 100,000,000 |
Area of multi-tenant retail and commercial properties | the Companys portfolio was comprised of 9properties, including 1 property held for sale, with approximately 766,000 rentable square feet of retail space located in 7 states | |||
Percentage of leased space of retail properties | 90.00% | |||
Partnership Interest Ownership Percentage | 100.00% | |||
Stock Redeemed or Called During Period, Value | $ 1,392,000 | |||
Restricted Stock [Member] | ||||
Stock Issue Plans [Line Items] | ||||
Issuance of stock | 50,000 | |||
Common Stock [Member] | ||||
Stock Issue Plans [Line Items] | ||||
Special Distribution Shares Issued To Stockholders | 273,729 | |||
Organization and Business (Additional Textual) [Abstract] | ||||
Stock Redeemed or Called During Period, Shares | 205,495 | |||
Stock Redeemed or Called During Period, Value | $ 2,000 | |||
Delaware Limited Liability Company [Member] | ||||
Organization and Business (Additional Textual) [Abstract] | ||||
Partnership Interest Ownership Percentage | 96.20% | 96.20% | ||
DRIP [Member] | ||||
Organization and Business (Additional Textual) [Abstract] | ||||
Common stock, primary offering price | $ 9.50 | |||
Common Stock, Shares, Issued | 10,526,316 | |||
Stock Redeemed or Called During Period, Shares | 365,903 | |||
Stock Redeemed or Called During Period, Value | $ 2,995,000 | |||
DRIP [Member] | Common Stock [Member] | ||||
Stock Issue Plans [Line Items] | ||||
Issuance of stock | 391,182 | |||
Proceeds from issuance of common stock | $ 3,620,000 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Buildings and improvements [Member] | Maximum [Member] | |
Depreciation and amortization | |
Estimated useful lives of assets | 30 years |
Buildings and improvements [Member] | Minimum [Member] | |
Depreciation and amortization | |
Estimated useful lives of assets | 5 years |
Tenant improvements [Member] | Maximum [Member] | |
Depreciation and amortization | |
Estimated useful lives of assets | 36 years |
Tenant improvements [Member] | Minimum [Member] | |
Depreciation and amortization | |
Estimated useful lives of assets | 1 year |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Straight-line rent receivable | $ 592,000 | $ 1,681,000 |
Percent Of Taxable Income Require To Distribute To Investors In Real Estate Investment Trust | 90.00% | |
Deferred Gain on Sale of Property | $ 1,225,000 | 0 |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 200,000 | |
Constitution Trail [Member] | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 2,500,000 | |
Topaz Marketplace [Member] | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ 1,400,000 | |
Schnuck Markets, Inc [Member] | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Rent Receivable Current | $ 33,000 | |
Ralph's Grocery [Member] | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Percentage Of Minimum Value Of Rentable Area Based On Company Annual Minimum Rent | 10.00% |
REAL ESTATE INVESTMENTS (Detail
REAL ESTATE INVESTMENTS (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Real Estate Properties Gross Sales Price | $ 105,400,000 | |
Real Estate Properties Original Purchase Price | $ 85,600,000 | [1] |
Osceola Village [Member] | ||
Real Estate Properties Location | Kissimmee, FL | |
Real Estate Properties Acquisition Date | Oct. 11, 2011 | |
Real Estate Properties Sale Date | Mar. 11, 2015 | |
Real Estate Properties Gross Sales Price | $ 22,000,000 | |
Real Estate Properties Original Purchase Price | $ 21,800,000 | [1],[2] |
Constitution Trail [Member] | ||
Real Estate Properties Location | Normal, IL | |
Real Estate Properties Acquisition Date | Oct. 21, 2011 | |
Real Estate Properties Sale Date | Mar. 11, 2015 | |
Real Estate Properties Gross Sales Price | $ 23,100,000 | |
Real Estate Properties Original Purchase Price | $ 18,000,000 | [1] |
Aurora Commons [Member] | ||
Real Estate Properties Location | Aurora, OH | |
Real Estate Properties Acquisition Date | Mar. 20, 2012 | |
Real Estate Properties Sale Date | Mar. 11, 2015 | |
Real Estate Properties Gross Sales Price | $ 8,500,000 | |
Real Estate Properties Original Purchase Price | $ 7,000,000 | [1] |
Moreno Marketplace [Member] | ||
Real Estate Properties Location | Moreno Valley, CA | |
Real Estate Properties Acquisition Date | Nov. 19, 2009 | |
Real Estate Properties Sale Date | Oct. 29, 2015 | |
Real Estate Properties Gross Sales Price | $ 19,400,000 | |
Real Estate Properties Original Purchase Price | $ 12,500,000 | [1] |
Northgate Plaza [Member] | ||
Real Estate Properties Location | Tuczon, AZ | |
Real Estate Properties Acquisition Date | Jul. 6, 2010 | |
Real Estate Properties Sale Date | Oct. 29, 2015 | |
Real Estate Properties Gross Sales Price | $ 12,800,000 | |
Real Estate Properties Original Purchase Price | $ 8,050,000 | [1] |
Summit Point [Member] | ||
Real Estate Properties Location | Fayetteville, GA | |
Real Estate Properties Acquisition Date | Dec. 21, 2011 | |
Real Estate Properties Sale Date | Oct. 30, 2015 | |
Real Estate Properties Gross Sales Price | $ 19,600,000 | |
Real Estate Properties Original Purchase Price | $ 18,250,000 | [1] |
[1] | The original purchase price amounts do not include acquisition fees. | |
[2] | The original purchase price for Osceola Village included an additional pad which was sold for $875,000 prior to this transaction. |
REAL ESTATE INVESTMENTS (Deta40
REAL ESTATE INVESTMENTS (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Rental and reimbursements | $ 16,047,000 | $ 21,703,000 |
Income (loss) from continuing operations | 13,991,000 | (11,948,000) |
Net income (loss) | 13,991,000 | (8,889,000) |
Net income (loss) available to common shareholders | $ 13,310,000 | $ (8,663,000) |
Weighted average shares outstanding | 10,960,613 | 10,969,714 |
Net earnings (loss) per share attributable to common stockholders - basic and diluted | $ 1.21 | $ (0.79) |
Pro Forma [Member] | ||
Rental and reimbursements | $ 11,431,000 | $ 12,262,000 |
Income (loss) from continuing operations | (6,106,000) | (6,752,000) |
Net income (loss) | (6,106,000) | (3,693,000) |
Net income (loss) available to common shareholders | $ (6,619,000) | $ (3,653,000) |
Weighted average shares outstanding | 10,960,613 | 10,969,714 |
Net earnings (loss) per share attributable to common stockholders - basic and diluted | $ (0.60) | $ (0.33) |
SGO Properties [Member] | Pro Forma [Member] | ||
Rental and reimbursements | $ (1,058,000) | $ (5,127,000) |
Income (loss) from continuing operations | (4,448,000) | 4,893,000 |
Net income (loss) | (4,448,000) | 4,893,000 |
Net income (loss) available to common shareholders | (4,280,000) | 4,707,000 |
Moreno Marketplace, Northgate Plaza and Summit Point [Member] | Pro Forma [Member] | ||
Rental and reimbursements | (3,558,000) | (4,314,000) |
Income (loss) from continuing operations | (15,649,000) | 303,000 |
Net income (loss) | (15,649,000) | 303,000 |
Net income (loss) available to common shareholders | $ (15,649,000) | $ 303,000 |
REAL ESTATE INVESTMENTS (Deta41
REAL ESTATE INVESTMENTS (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from rental property | $ 62,000 | |
Rental property expenses | 75,000 | |
Interest expense | 12,000 | |
Operating loss from discontinued operations | $ 0 | (25,000) |
Gain on disposal of real estate | 0 | 3,084,000 |
Income (loss) from discontinued operations | $ 0 | $ 3,059,000 |
REAL ESTATE INVESTMENTS (Deta42
REAL ESTATE INVESTMENTS (Details 3) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Investments in real estate | ||
Land | $ 15,981,000 | $ 45,740,000 |
Building and improvements | 56,158,000 | 109,998,000 |
Tenant improvements | 3,676,000 | 10,267,000 |
Accumulated depreciation | (10,068,000) | (16,717,000) |
Investments in real estate, net | 65,747,000 | 149,288,000 |
Lease intangibles, net | 4,290,000 | 13,658,000 |
Tenants receivables, net | 1,664,000 | 2,678,000 |
LIABILITIES | ||
Notes payable | 34,391,000 | 122,148,000 |
Below market lease intangibles, net | 3,303,000 | 5,541,000 |
Other liabilities | 1,479,000 | 1,767,000 |
Liabilities related to assets held for sale | 7,036,000 | 0 |
Assets Held-for-sale [Member] | ||
Investments in real estate | ||
Land | 4,718,000 | 342,000 |
Building and improvements | 4,697,000 | 0 |
Tenant improvements | 499,000 | 0 |
Investments in real estate, at Cost | 9,914,000 | 342,000 |
Accumulated depreciation | (891,000) | 0 |
Investments in real estate, net | 9,023,000 | 342,000 |
Lease intangibles, net | 694,000 | 0 |
Deferred financing costs, net | 127,000 | 0 |
Tenants receivables, net | 36,000 | 0 |
Prepaid expenses | 16,000 | 0 |
Assets held for sale | 9,896,000 | 342,000 |
LIABILITIES | ||
Notes payable | 5,395,000 | 0 |
Below market lease intangibles, net | 1,625,000 | 0 |
Other liabilities | 16,000 | 0 |
Liabilities related to assets held for sale | $ 7,036,000 | $ 0 |
REAL ESTATE INVESTMENTS (Deta43
REAL ESTATE INVESTMENTS (Details Textual) - USD ($) | Jan. 08, 2014 | Nov. 25, 2014 | Nov. 21, 2014 | Jun. 30, 2012 | Aug. 31, 2010 | Dec. 31, 2015 | Dec. 31, 2014 |
Payments to Acquire Interest in Joint Venture | $ 7,630,000 | $ 0 | |||||
Sales of Real Estate | 105,400,000 | ||||||
Operating Income (Loss) | (3,218,000) | (7,252,000) | |||||
Secured Debt [Member] | |||||||
Payments Of Debt By Sale of Real Estate Properties | 30,700,000 | ||||||
Mortgage Loan [Member] | |||||||
Payments Of Debt By Sale of Real Estate Properties | 11,900,000 | ||||||
SGO Joint Venture [Member] | |||||||
Payments to Acquire Interest in Joint Venture | $ 4,500,000 | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.00% | ||||||
Payments Of Debt By Sale of Real Estate Properties | $ 36,400,000 | ||||||
Ownership Interest In Joint Venture | 19.00% | ||||||
San Jacinto Esplanade [Member] | |||||||
Repayments of Secured Debt | $ 5,700,000 | ||||||
Payments to Acquire Property, Plant, and Equipment, Total | $ 7,088,000 | ||||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||||||
Operating Income (Loss) | $ 140,000 | 54,000 | |||||
Proceeds from Sale of Property Held-for-sale | $ 875,000 | ||||||
Visalia Marketplace [Member] | |||||||
Percentage Of Net Proceeds From Sale | 80.00% | ||||||
Sales of Real Estate | $ 21,100,000 | ||||||
Payments to Acquire Real Estate | $ 19,000,000 | ||||||
Osceola Village [Member] | |||||||
Sales of Real Estate | $ 22,000,000 | ||||||
Proceeds from Sale of Other Real Estate | 875,000 | ||||||
Real Estate Properties [Member] | |||||||
Operating Income (Loss) | $ 128,000 | $ 2,400,000 |
INVESTMENT IN UNCONSOLIDATED JO
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 6,902,000 | $ 0 |
SGO Retail Acquisition Venture LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Date Of Equity Method Investments | Mar. 11, 2015 | |
Equity Method Investment, Ownership Percentage | 19.00% | |
Equity Method Investments | $ 4,098,000 | |
SGO MN Retail Acquisitions Venture, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Date Of Equity Method Investments | Sep. 30, 2015 | |
Equity Method Investment, Ownership Percentage | 10.00% | |
Equity Method Investments | $ 2,804,000 |
INVESTMENTS IN UNCONSOLIDATED45
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES (Details 1) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
ASSETS | |
Investments in real estate, net | $ 110,901,000 |
Other assets | 28,570,000 |
Total assets | 139,471,000 |
LIABILITIES AND MEMBERS' CAPITAL | |
Notes payable | 75,632,000 |
Other liabilities | 14,229,000 |
Total liabilities | 89,861,000 |
Members' capital | 49,610,000 |
Total liabilities and members' capital | 139,471,000 |
RESULTS OF OPERATIONS | |
Revenues | 7,372,000 |
Expenses | (9,222,317) |
Operating loss | (1,850,317) |
Other income | 36,000 |
Net income | $ (1,814,317) |
INVESTMENTS IN UNCONSOLIDATED46
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES (Details Textual) | Mar. 12, 2015USD ($) | Mar. 11, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Payments to Acquire Interest in Joint Venture | $ 7,630,000 | $ 0 | |||
Proceeds From Sale Of Initial Properties | $ 53,600,000 | ||||
Repayment Of Notes Payable | $ 86,362,000 | $ 37,982,000 | |||
Proceeds from Bank Debt | $ 50,500,000 | ||||
Number of Real Estate Properties | 14 | ||||
SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Mortgage Loans on Real Estate, Beginning Balance | $ 34,000,000 | ||||
More Than Twelve Percent Internal Rate of Return [Member] | SGO MN Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Internal Rate of return | 12.00% | ||||
Investments in Joint Venture, Distributions made Percentage | 10.00% | ||||
More Than Seventeen Percent Internal Rate of Return [Member] | SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Multiple On Its Capital Contribution | 1.5 | ||||
More Than Seventeen Percent Internal Rate of Return [Member] | SGO MN Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Internal Rate of return | 17.00% | ||||
Investments in Joint Venture, Distributions made Percentage | 17.50% | ||||
Equity Multiple On Its Capital Contribution | 1.5 | ||||
More Than Twenty Two Percent Internal Rate of Return [Member] | SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Multiple On Its Capital Contribution | 1.75 | ||||
More Than Twenty Two Percent Internal Rate of Return [Member] | SGO MN Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Internal Rate of return | 22.00% | ||||
Investments in Joint Venture, Distributions made Percentage | 25.00% | ||||
Equity Multiple On Its Capital Contribution | 1.75 | ||||
Minnesota, North Dakota and Nebraska [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 79,000,000 | ||||
Minnesota [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payments to Acquire Business Two, Net of Cash Acquired | $ 1,600,000 | ||||
Used To Pay Off Notes Payable Balances [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds From Sale Of Initial Properties | $ 36,400,000 | ||||
Capital Contribution To Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds From Sale Of Initial Properties | 4,500,000 | ||||
Loaned To Oaktree On Short Term Demand Note [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds From Sale Of Initial Properties | $ 7,000,000 | ||||
SRT Manager [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Full Redemption Amount Paid | $ 2,100,000 | ||||
Operating Partnership Interest | 8.33% | ||||
Strategic Realty Trust [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest In Joint Venture | 19.00% | ||||
Payments to Acquire Interest in Joint Venture | $ 4,500,000 | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.00% | ||||
Strategic Realty Trust [Member] | Related Party [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest In Joint Venture | 19.00% | ||||
Proceeds From Sale Of Initial Properties | $ 1,200,000 | ||||
Percentage Of Gain Loss On sale Of initial Properties To The Joint Venture | 20.00% | ||||
Oaktree [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Advance In Capital Contribution To Joint Venture | $ 7,000,000 | ||||
Ownership Interest In Joint Venture | 80.00% | ||||
Payments to Acquire Interest in Joint Venture | $ 19,100,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||||
Repayment Of Notes Payable | $ 7,000,000 | ||||
Glenborough Property Partners, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest In Joint Venture | 1.00% | ||||
Payments to Acquire Interest in Joint Venture | $ 200,000 | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 1.00% | ||||
Glenborough Property Partners, LLC [Member] | SGO MN Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 10.00% | ||||
General Partners' Contributed Capital | $ 2,800,000 | ||||
Glenborough Property Partners, LLC [Member] | More Than Twelve Percent Internal Rate of Return [Member] | SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Internal Rate of return | 12.00% | ||||
Glenborough Property Partners, LLC [Member] | More Than Seventeen Percent Internal Rate of Return [Member] | SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Distributions made Percentage | 5.00% | ||||
Glenborough Property Partners, LLC [Member] | More Than Twenty Two Percent Internal Rate of Return [Member] | SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Distributions made Percentage | 5.00% | ||||
Glenborough Property Partners, LLC [Member] | Related Party [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest In Joint Venture | 1.00% | ||||
Osceola Village [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds From Sale Of Initial Properties | $ 22,000,000 | ||||
Constitution Trail [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds From Sale Of Initial Properties | 23,100,000 | ||||
Aurora Commons [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds From Sale Of Initial Properties | $ 8,500,000 | ||||
Oaktree Real Estate Opportunities Fund VI, L.P [Member] | SGO MN Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 80.00% | ||||
General Partners' Contributed Capital | $ 22,700,000 | ||||
Oaktree Real Estate Opportunities Fund VI, L.P [Member] | More Than Twelve Percent Internal Rate of Return [Member] | SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Internal Rate of return | 5.00% | ||||
GPP and Oaktree pro rata [Member] | More Than Seventeen Percent Internal Rate of Return [Member] | SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Internal Rate of return | 17.00% | ||||
SGO Promoted Returns [Member] | More Than Twenty Two Percent Internal Rate of Return [Member] | SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Internal Rate of return | 22.00% | ||||
Parent Company [Member] | SGO MN Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 10.00% | ||||
General Partners' Contributed Capital | $ 2,800,000 | ||||
Parent Company [Member] | More Than Twelve Percent Internal Rate of Return [Member] | SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Internal Rate of return | 5.00% | ||||
Parent Company [Member] | More Than Seventeen Percent Internal Rate of Return [Member] | SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Distributions made Percentage | 12.50% | ||||
Parent Company [Member] | More Than Twenty Two Percent Internal Rate of Return [Member] | SGO Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Joint Venture, Distributions made Percentage | 20.00% |
FUTURE MINIMUM RENTAL INCOME (D
FUTURE MINIMUM RENTAL INCOME (Details) | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,016 | $ 7,043,000 |
2,017 | 6,154,000 |
2,018 | 5,070,000 |
2,019 | 4,461,000 |
2,020 | 3,680,000 |
Thereafter | 7,365,000 |
Total | $ 33,773,000 |
FUTURE MINIMUM RENTAL INCOME 48
FUTURE MINIMUM RENTAL INCOME (Details Textual) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Security Deposit | $ 175,000 | $ 437,000 |
ACQUIRED LEASE INTANGIBLES AN49
ACQUIRED LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Indefinite-lived Intangible Assets [Line Items] | ||
Lease Intangibles, Cost | $ 8,089,000 | $ 20,898,000 |
Lease Intangibles, Accumulated amortization | (3,799,000) | (7,240,000) |
Lease Intangibles | 4,290,000 | 13,658,000 |
Below - Market Lease Liabilities, Cost | (4,463,000) | (6,991,000) |
Below - Market Lease Liabilities, Accumulated amortization | 1,160,000 | 1,450,000 |
Below - Market Lease Liabilities | $ (3,303,000) | $ (5,541,000) |
ACQUIRED LEASE INTANGIBLES AN50
ACQUIRED LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Amortization of lease intangibles and below-market lease liabilities | ||
Lease Intangibles, Amortization | $ (1,510,000) | $ (2,791,000) |
Below - Market Lease Liabilities, Amortization | $ 365,000 | $ 520,000 |
ACQUIRED LEASE INTANGIBLES AN51
ACQUIRED LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES (Details 2) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Acquired Lease Intangibles | ||
2,016 | $ 918,000 | |
2,017 | 772,000 | |
2,018 | 652,000 | |
2,019 | 589,000 | |
2,020 | 483,000 | |
Thereafter | 876,000 | |
Intangibles, Net | 4,290,000 | $ 13,658,000 |
Below-Market Lease Intangibles | ||
2,016 | (274,000) | |
2,017 | (243,000) | |
2,018 | (221,000) | |
2,019 | (212,000) | |
2,020 | (207,000) | |
Thereafter | (2,146,000) | |
Below - Market Lease Liabilities | $ (3,303,000) | $ (5,541,000) |
PREPAID EXPENSES AND OTHER AS52
PREPAID EXPENSES AND OTHER ASSETS, NET (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid expenses and other assets | ||
Sales tax rebate incentive, net of accumulated amortization | $ 29,000 | $ 672,000 |
Prepaid expenses | 194,000 | 593,000 |
Tenant lease incentive | 0 | 60,000 |
Utility deposits and other | 508,000 | 38,000 |
Total | $ 731,000 | $ 1,363,000 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Notes Payable | ||
Principal Balance | $ 34,391,000 | $ 122,148,000 |
Key Bank credit facility [Member] | ||
Notes Payable | ||
Principal Balance | 0 | 19,014,000 |
Secured term loans [Member] | ||
Notes Payable | ||
Principal Balance | $ 24,701,000 | 57,116,000 |
Interest Rate | 5.10% | |
Mortgage loans [Member] | ||
Notes Payable | ||
Principal Balance | $ 9,690,000 | 44,768,000 |
Interest Rate | 5.63% | |
Unsecured loans [Member] | ||
Notes Payable | ||
Principal Balance | $ 0 | $ 1,250,000 |
NOTES PAYABLE (Details 1)
NOTES PAYABLE (Details 1) | Dec. 31, 2015USD ($) |
Schedule of maturities for notes payable outstanding | |
2,016 | $ 578,000 |
2,017 | 9,985,000 |
2,018 | 473,000 |
2,019 | 23,355,000 |
2,020 | 0 |
Thereafter | 0 |
Total | $ 34,391,000 |
NOTES PAYABLE (Details Textual)
NOTES PAYABLE (Details Textual) - USD ($) | Aug. 04, 2014 | Oct. 29, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 02, 2015 | Mar. 11, 2015 |
Notes Payable | |||||||
Interest expense | $ 5,459,000 | $ 8,983,000 | |||||
Amortization of deferred financing costs | 544,000 | 747,000 | |||||
Interest expense payable | $ 199,000 | 1,080,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000,000 | ||||||
Line of Credit Facility, Commitment Fee Description | The Company will pay KeyBank an unused commitment fee, quarterly in arrears, which will accrue at 0.30% per annum if the usage under the Amended and Restated Credit Facility is less than or equal to 50% of the Facility Amount, and 0.20% per annum if the usage under the Amended and Restated Credit Facility is greater than 50% of the Facility Amount. | ||||||
Long-term Line of Credit | $ 20,800,000 | ||||||
Financing Coordination Fee | $ 300,000 | ||||||
SRT Manager [Member] | |||||||
Notes Payable | |||||||
Operating Partnership Interest | 8.33% | 8.33% | |||||
Full Redemption Amount Paid | $ 2,102,000 | $ 2,102,000 | |||||
SRT Manager [Member] | Prior Constitution [Member] | |||||||
Notes Payable | |||||||
Operating Partnership Interest | 12.00% | ||||||
SRT Manager [Member] | After Constitution [Member] | |||||||
Notes Payable | |||||||
Operating Partnership Interest | 8.33% | ||||||
Secured Holdings [Member] | Prior Constitution [Member] | |||||||
Notes Payable | |||||||
Operating Partnership Interest | 88.00% | ||||||
Secured Holdings [Member] | After Constitution [Member] | |||||||
Notes Payable | |||||||
Operating Partnership Interest | 91.67% | ||||||
Constitution Trail Acquisition Loan [Member] | |||||||
Notes Payable | |||||||
Operating Partnership Interest | 100.00% | ||||||
Revolving Credit Facility [Member] | |||||||
Notes Payable | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | ||||||
Amended and Restated Credit Facility [Member] | |||||||
Notes Payable | |||||||
Outstanding Secured Term Loans | $ 4,000,000 | ||||||
Proceeds from Loan Originations | $ 4,000,000 | ||||||
Outstanding Balance of Amended And Restated Credit Facility | $ 19,000,000 | ||||||
2010 Credit Facility [Member] | |||||||
Notes Payable | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35,000,000 |
FAIR VALUE DISCLOSURES (Details
FAIR VALUE DISCLOSURES (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
Notes Payable | |||
Notes Payable, Carrying Value | [1] | $ 34,391,000 | $ 122,148,000 |
Notes Payable, Fair Value | [2] | $ 35,099,000 | $ 123,511,000 |
[1] | The carrying value of the Company’s notes payable represents outstanding principal as of December 31, 2015 and December 31, 2014. | ||
[2] | The estimated fair value of the notes payable is based upon indicative market prices of the Company’s notes payable based on prevailing market interest rates. |
FAIR VALUE DISCLOSURES (Detai57
FAIR VALUE DISCLOSURES (Details Textual) | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Constitution Trail [Member] | |
Impairment of Long-Lived Assets to be Disposed of | $ 2,500,000 |
Discount Rates Of Appraised Values | 11.00% |
Capitalization Rates Appraised Values | 10.00% |
Topaz Marketplace [Member] | |
Impairment of Long-Lived Assets to be Disposed of | $ 1,400,000 |
Discount Rates Of Appraised Values | 10.00% |
Capitalization Rates Appraised Values | 8.50% |
EQUITY (Details)
EQUITY (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Company's common stockholders and non-controlling Common Unit holders | ||||||||||
Distribution Record Date | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | ||
Distribution Payable Date | Jan. 30, 2016 | Oct. 31, 2015 | Jul. 30, 2015 | Apr. 30, 2015 | Jan. 30, 2015 | Oct. 31, 2014 | Jul. 30, 2014 | Apr. 30, 2014 | ||
Distribution Per Common Stock /Common Unit | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | ||
Total Common Stockholders Distribution | $ 661,000 | $ 654,000 | $ 654,000 | $ 658,000 | $ 658,000 | $ 658,000 | $ 658,000 | $ 548,000 | $ 2,627,000 | $ 2,522,000 |
Total Common Unit Holders Distribution | 25,000 | 26,000 | 26,000 | 26,000 | 26,000 | 26,000 | 26,000 | 22,000 | 103,000 | 100,000 |
Total Distribution | $ 686,000 | $ 680,000 | $ 680,000 | $ 684,000 | $ 684,000 | $ 684,000 | $ 684,000 | $ 570,000 | $ 2,730,000 | $ 2,622,000 |
EQUITY (Details Textual)
EQUITY (Details Textual) - USD ($) | Nov. 04, 2015 | Aug. 04, 2014 | Feb. 07, 2013 | Jan. 24, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 07, 2015 | Dec. 31, 2013 | Jul. 09, 2013 | Mar. 12, 2012 | Oct. 31, 2011 | Jun. 30, 2011 | May. 26, 2011 | Nov. 04, 2008 | Oct. 16, 2008 |
Equity (Textual) [Abstract] | |||||||||||||||
Common stock shares sold in offering | 10,688,940 | 11,037,948 | 10,969,714 | 100,000,000 | |||||||||||
Common Stock, Value, Issued | $ 111,000 | $ 110,000 | |||||||||||||
Common stock par value | $ 0.01 | $ 0.01 | |||||||||||||
Equity (Additional Textual) [Abstract] | |||||||||||||||
Authority to issue shares of common stock | 400,000,000 | 400,000,000 | |||||||||||||
preferred stock, shares authorized | 50,000,000 | 50,000,000 | |||||||||||||
Preferred stock par value | $ 0.01 | $ 0.01 | |||||||||||||
Weighted average of the number of shares | 5.00% | ||||||||||||||
Annual REIT taxable income | 90.00% | ||||||||||||||
Alternative Investments, Fair Value Disclosure | $ 1,900,000 | ||||||||||||||
Related Party Transaction, Amounts Of Transaction | $ 1,000 | ||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | ||||||||||||||
Proceeds From Issuance Of Common Stock | $ 104,700,000 | ||||||||||||||
Stock Redeemed or Called During Period, Value | $ 1,392,000 | ||||||||||||||
Redemption Price for Shares Percentage | 100.00% | ||||||||||||||
Amended and Restated Share Redemption, Redemption Amount Minimum Limit | $ 5,000 | ||||||||||||||
Distressed Debt | $ 18,000,000 | ||||||||||||||
Debt Collateral Fair Market Value | $ 27,600,000 | ||||||||||||||
Special Distribution Authorized By Board Of Directors | $ 2,248,000 | ||||||||||||||
Special Distribution Paid In Cash To Stockholders | 449,600 | ||||||||||||||
Special Distribution Paid In Terms Of Share Value To Stockholders | $ 1,798,400 | ||||||||||||||
Units of Partnership Interest, Description | 15% of the Company’s net sale proceeds upon disposition of its assets after the Company’s stockholders receive a return of their investment plus a 7% cumulative, non-compounded rate of return or (ii) an equivalent amount in the event that the Company lists its shares of common stock on a national securities exchange or upon certain terminations of the Advisory Agreement after the Company’s stockholders are deemed to have received a return of their investment plus a 7% cumulative, non-compounded rate of return. | ||||||||||||||
Special Distribution [Member] | |||||||||||||||
Equity (Additional Textual) [Abstract] | |||||||||||||||
Special Distribution Paid In Cash To Stockholders | $ 450,000 | ||||||||||||||
Special Distribution Paid In Terms Of Share Value To Stockholders | $ 1,798,000 | ||||||||||||||
Share Redemption Program, Redemption Percentage | 100.00% | ||||||||||||||
Special Distribution Paid Number of Shares Issued | 273,729 | ||||||||||||||
Special Distribution Paid Adjustments | $ 108,000 | ||||||||||||||
Death of a shareholder [Member] | |||||||||||||||
Equity (Additional Textual) [Abstract] | |||||||||||||||
Stock Redeemed or Called During Period, Value | 2,000,000 | ||||||||||||||
Disability of a shareholder [Member] | |||||||||||||||
Equity (Additional Textual) [Abstract] | |||||||||||||||
Stock Redeemed or Called During Period, Value | $ 1,000,000 | ||||||||||||||
T N P Strategic Retail O P Holdings L L C [Member] | |||||||||||||||
Equity (Additional Textual) [Abstract] | |||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 91.67% | 12.00% | |||||||||||||
T N P SR T Manager [Member] | |||||||||||||||
Equity (Additional Textual) [Abstract] | |||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 8.33% | 88.00% | |||||||||||||
Full Redemption Amount Paid | $ 2,100,000 | ||||||||||||||
Glenborough Property Partners, LLC [Member] | |||||||||||||||
Equity (Textual) [Abstract] | |||||||||||||||
Common stock shares sold in offering | 111,111 | ||||||||||||||
Common stock par value | $ 8 | ||||||||||||||
Companys Common Stock | 22,222 | ||||||||||||||
TNP LLC [Member] | |||||||||||||||
Equity (Textual) [Abstract] | |||||||||||||||
Companys Common Stock | 22,222 | ||||||||||||||
Common Stock [Member] | |||||||||||||||
Equity (Additional Textual) [Abstract] | |||||||||||||||
Stock Redeemed or Called During Period, Shares | 205,495 | ||||||||||||||
Stock Redeemed or Called During Period, Value | $ 2,000 | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 0 | ||||||||||||||
Common Stock [Member] | Share Redemption Program [Member] | |||||||||||||||
Equity (Additional Textual) [Abstract] | |||||||||||||||
Stock Redeemed or Called During Period, Shares | 205,495 | ||||||||||||||
Stock Redeemed or Called During Period, Value | $ 1,392,000 | ||||||||||||||
Anthony W. Thompson [Member] | |||||||||||||||
Equity (Textual) [Abstract] | |||||||||||||||
Common stock shares sold in offering | 111,111 | ||||||||||||||
Common Stock, Value, Issued | $ 1,000,000 | ||||||||||||||
Sponsor [Member] | |||||||||||||||
Equity (Textual) [Abstract] | |||||||||||||||
Common stock shares sold in offering | 22,222 | ||||||||||||||
Common Stock, Value, Issued | $ 200,000 | ||||||||||||||
DRIP [Member] | |||||||||||||||
Equity (Textual) [Abstract] | |||||||||||||||
Issuance of common stock under DRIP | 391,182 | ||||||||||||||
Equity (Additional Textual) [Abstract] | |||||||||||||||
Common Stock registered and reserved | 100,000,000 | ||||||||||||||
Proceeds From Issuance Of Common Stock | $ 3,600,000 | ||||||||||||||
Stock Redeemed or Called During Period, Shares | 365,903 | ||||||||||||||
Stock Redeemed or Called During Period, Value | $ 2,995,000 | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 273,729 | ||||||||||||||
Pinehurst Square East [Member] | |||||||||||||||
Equity (Textual) [Abstract] | |||||||||||||||
Common stock shares sold in offering | 287,472 | ||||||||||||||
Common Stock, Value, Issued | $ 2,600,000 | ||||||||||||||
Common stock par value | $ 9 | ||||||||||||||
Turkey Creek [Member] | |||||||||||||||
Equity (Textual) [Abstract] | |||||||||||||||
Common stock shares sold in offering | 144,324 | ||||||||||||||
Common Stock, Value, Issued | $ 1,400,000 | ||||||||||||||
Common stock par value | $ 9.50 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Numerator - basic and diluted | |||
Net income (loss) from continuing operations | $ 13,991,000 | $ (11,948,000) | |
Net income (loss) attributable to non-controlling interests | 681,000 | (709,000) | |
Net income (loss) attributable to common shares | 13,310,000 | (11,239,000) | |
Net income from discontinued operations | 0 | 3,059,000 | |
Net loss attributable to non-controlling interests | 0 | (483,000) | |
Net income (loss) attributable to common shares | $ 13,310,000 | $ (8,663,000) | |
Denominator - basic and diluted | |||
Basic weighted average common shares | 10,960,613 | 10,969,714 | |
Effect of dilutive securities Common units | [1] | 0 | 0 |
Diluted weighted average common shares | 10,960,613 | 10,969,714 | |
Basic earnings (loss) per common share | |||
Net income (loss) from continuing operations attributable to common shares | $ 1.21 | $ (1.02) | |
Net income from discontinued operations attributable to common shares | 0 | 0.23 | |
Net income (loss) attributable to common shares | 1.21 | (0.79) | |
Diluted earnings (loss) per common share | |||
Net income (loss) from continuing operations attributable to common shares | 1.21 | (1.02) | |
Net income from discontinued operations attributable to common shares | 0 | 0.23 | |
Net income (loss) attributable to common shares | $ 1.21 | $ (0.79) | |
[1] | The effect of 431,986 convertible Common Units pursuant to the redemption rights outlined in the Company’s registration statement on Form S-11 have not been included as they would not be dilutive. |
EARNINGS PER SHARE (Details Tex
EARNINGS PER SHARE (Details Textual) | 12 Months Ended |
Dec. 31, 2015shares | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Antidiluted Convertible Common Units of Redemption | 431,986 |
INCENTIVE AWARD PLAN (Details)
INCENTIVE AWARD PLAN (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Granted and vested restricted stock | ||
Restricted Stock, Opening balance | 0 | 3,333 |
Restricted Stock, Granted | 0 | 0 |
Restricted Stock, Vested | 3,333 | |
Restricted Stock, Closing balance | 0 | 0 |
Weighted Average Grant Date Fair Value, Opening balance | $ 0 | $ 9 |
Weighted Average Grant Date Fair Value, Granted | 0 | 0 |
Weighted Average Grant Date Fair Value, Vested | 9 | |
Weighted Average Grant Date Fair Value, Closing balance | $ 0 | $ 0 |
INCENTIVE AWARD PLAN (Details T
INCENTIVE AWARD PLAN (Details Textual) - USD ($) | Feb. 07, 2013 | Nov. 12, 2009 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 07, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 0 | $ 18,000 | |||
Initial Restricted Stock Grant [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 5,000 | ||||
Restricted Stock On Re Election [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 2,500 | ||||
Incentive Award Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock registered and reserved | 2,000,000 | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds from Issuance Initial Public Offering | $ 2,000,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jan. 24, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | $ 1,000 | ||
Expensed Acquisition Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | $ 79,000 | $ 0 | |
Related-party costs, Payable | 0 | 0 | |
Expensed Financing Coordination Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 87,000 | 0 | |
Related-party costs, Payable | 0 | 0 | |
Expensed Asset management Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 978,000 | 1,320,000 | |
Related-party costs, Payable | 19,000 | 0 | |
Expensed Reimbursement Of Operating Expenses [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 250,000 | 72,000 | |
Related-party costs, Payable | 27,000 | 0 | |
Expensed Property Management Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 612,000 | 857,000 | |
Related-party costs, Payable | 3,000 | 0 | |
Expensed Disposition Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 1,173,000 | 268,000 | |
Related-party costs, Payable | 0 | 0 | |
Expensed Guaranty Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 1,000 | 14,000 | |
Related-party costs, Payable | 0 | 1,000 | |
Capitalized Financing Coordination Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 0 | 300,000 | |
Related-party costs, Payable | 0 | 0 | |
Capitalized Leasing Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 122,000 | 127,000 | |
Related-party costs, Payable | 0 | 0 | |
Capitalized Legal Leasing Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 124,000 | 222,000 | |
Related-party costs, Payable | 0 | 0 | |
Capitalized Construction Management Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 19,000 | 56,000 | |
Related-party costs, Payable | 0 | 0 | |
Expensed [Member] | Advisor Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 3,180,000 | 2,531,000 | |
Related-party costs, Payable | 49,000 | 1,000 | |
Capitalized [Member] | Advisor Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 265,000 | 705,000 | |
Related-party costs, Payable | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (D65
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | Aug. 04, 2014 | Mar. 31, 2015 | Jan. 24, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 09, 2013 |
Related party transactions (Textual) [Abstract] | ||||||
Related-party costs, Incurred | $ 1,000 | |||||
Property Management Fee, Percent Fee | 4.00% | |||||
Related Party Transactions (Additional Textual) [Abstract] | ||||||
Market-based property management fee of gross revenues | 5.00% | |||||
Company pays Advisor an acquisition fee for cost of investments acquired | 1.00% | |||||
Company pays Advisor of the amount funded by the Company to acquire or originate real estate-related loans | 1.00% | |||||
Advisor or its affiliates also will be paid disposition fees of a customary and competitive real estate commission | 50.00% | |||||
Advisor or its affiliates also will be paid disposition fees of a customary and competitive real estate commission, not to exceed | 3.00% | |||||
Reimbursement Of Operating Expenses Description | The Company or the OP will pay directly, or reimburse the Advisor for, certain third-party expenses paid or incurred by the Advisor in connection with the services provided by the Advisor pursuant to the Advisory Agreement, subject to the limitation that the Company will not reimburse the Advisor at the end of any fiscal quarter in which the Company’s total operating expenses (including the asset management fee described below) for the four preceding fiscal quarters exceed the greater of (1) 2% of its average invested assets (as defined in the Charter); or (2) 25% of its net income (as defined in the Charter) determined without reduction for any additions to depreciation, bad debts or other similar non-cash expenses and excluding any gain from the sale of the Company’s assets for that period (the “2%/25% Guideline”). The Advisor is required to reimburse the Company quarterly for any amounts by which total operating expenses exceed the 2%/25% Guideline in the previous expense year unless (i) the Company elects to subtract the excess amount from the “total operating expenses” for the subsequent fiscal quarter, or (ii) the independent directors determine that the excess expenses are justified based on unusual and nonrecurring factors which they deem sufficient. | |||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||
Common Stock Sale Price Per Share | $ 8 | |||||
Related Party Transaction, Expenses From Transactions With Related Party | $ 147,000 | $ 0 | ||||
TNP LLC [Member] | ||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||
Sale Of Stock Number Of Shares Issued | 22,222 | |||||
SGO Joint Venture [Member] | ||||||
Related Party Transactions (Additional Textual) [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.00% | |||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||
Related Party Transaction, Expenses From Transactions With Related Party | $ 356,000 | $ 226,000 | ||||
Sharon D. Thompson [Member] | ||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||
Sale Of Stock Number Of Shares Issued | 111,111 | |||||
SRT Manager [Member] | ||||||
Related Party Transactions (Additional Textual) [Abstract] | ||||||
Operating Partnership Interest | 8.33% | 8.33% | ||||
Full Redemption Amount Paid | $ 2,102,000 | $ 2,102,000 | ||||
Asset management fees [Member] | ||||||
Related party transactions (Textual) [Abstract] | ||||||
Related-party costs, Incurred | $ 250,000 | |||||
Related Party Transactions (Additional Textual) [Abstract] | ||||||
Company pays Advisor a monthly asset management fee on all real estate investments | 0.60% | |||||
Financing coordination fees [Member] | ||||||
Related Party Transactions (Additional Textual) [Abstract] | ||||||
Payment of financial Coordination fees | 1.00% | |||||
Mortgage Notes [Member] | ||||||
Related Party Transactions (Additional Textual) [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 12.00% |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) | Mar. 08, 2016USD ($) | Mar. 07, 2015USD ($) | Jan. 31, 2016USD ($) | Jan. 30, 2016$ / shares | Jan. 28, 2016USD ($)a | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Sep. 30, 2014USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Mar. 31, 2014USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 07, 2016 |
Subsequent Event [Line Items] | ||||||||||||||||
Dividend Distribution To Common Stockholders And Unit Holders | $ 686,000 | $ 680,000 | $ 680,000 | $ 684,000 | $ 684,000 | $ 684,000 | $ 684,000 | $ 570,000 | $ 2,730,000 | $ 2,622,000 | ||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | ||||||||
Payments to Acquire Interest in Joint Venture | $ 7,630,000 | $ 0 | ||||||||||||||
Gelson’s Development Joint Venture [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Area of Land | a | 38,000 | |||||||||||||||
Wilshire Joint Venture 3032 [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Payments to Acquire Interest in Joint Venture | $ 5,700,000 | |||||||||||||||
Capital Interest Percentage in Joint Venture | 100.00% | 100.00% | ||||||||||||||
Profit Interest Percentage in Joint Venture | 50.00% | 50.00% | ||||||||||||||
Profit sharing ratio of joint Venture | 50.00% | |||||||||||||||
Cadence Capital Investments, LLC [Member] | Wilshire Joint Venture 3032 [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Profit sharing ratio of joint Venture | 50.00% | |||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.06 | |||||||||||||||
Subsequent Event [Member] | Gelson’s Development Joint Venture [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Capital Interest Percentage in Joint Venture | 100.00% | |||||||||||||||
Profit Interest Percentage in Joint Venture | 50.00% | |||||||||||||||
Lease Expiration Term | 20 years | |||||||||||||||
Profit sharing ratio of joint Venture | 50.00% | |||||||||||||||
Subsequent Event [Member] | Gelson’s Development Joint Venture [Member] | Initial Contribution [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Payments to Acquire Interest in Joint Venture | $ 7,000,000 | |||||||||||||||
Subsequent Event [Member] | Gelson’s Development Joint Venture [Member] | Subsequent Contributuion [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Payments to Acquire Interest in Joint Venture | $ 700,000 | |||||||||||||||
Subsequent Event [Member] | Wilshire Joint Venture 3032 [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Proceeds from Loan Originations | $ 8,500,000 | |||||||||||||||
Payments to Acquire Real Estate, Total | $ 13,500,000 | |||||||||||||||
Subsequent Event [Member] | Buchanan Mortgage Holdings [Member] | Gelson’s Development Joint Venture [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Proceeds from Loan Originations | $ 10,700,000 | |||||||||||||||
Payments to Acquire Real Estate, Total | $ 12,950,000 | |||||||||||||||
Subsequent Event [Member] | Cadence Capital Investments, LLC [Member] | Gelson’s Development Joint Venture [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Profit sharing ratio of joint Venture | 50.00% |
SCHEDULE III - REAL ESTATE OP67
SCHEDULE III - REAL ESTATE OPERATING PROPERTIES AND ACCUMULATED DEPRECIATION (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Initial Cost to Company, Encumbrance | $ 34,391,000 | ||||
Initial Cost to Company, Land | 20,305,000 | ||||
Initial Cost to Company, Building & Improvements | 61,577,000 | ||||
Cost Capitalized Subsequent to Acquisition | [1] | (6,067,000) | |||
Gross Amount at Which Carried at Close of Period, Land | 15,981,000 | ||||
Gross Amount at Which Carried at Close of Period, Building & Improvements | 59,834,000 | ||||
Gross Amount at Which Carried at Close of Period, Total | 75,815,000 | [2] | $ 166,005,000 | $ 174,135,000 | |
Accumulated Depreciation | $ (10,068,000) | $ (16,717,000) | $ (12,009,000) | ||
Minimum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 5 years | |||
Maximum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 30 years | |||
Pinehurst Square East [Member] | |||||
Initial Cost to Company, Encumbrance | $ 0 | ||||
Initial Cost to Company, Land | 3,270,000 | ||||
Initial Cost to Company, Building & Improvements | 10,450,000 | ||||
Cost Capitalized Subsequent to Acquisition | [1] | 320,000 | |||
Gross Amount at Which Carried at Close of Period, Land | 3,270,000 | ||||
Gross Amount at Which Carried at Close of Period, Building & Improvements | 10,770,000 | ||||
Gross Amount at Which Carried at Close of Period, Total | [2] | 14,040,000 | |||
Accumulated Depreciation | $ (1,743,000) | ||||
Acquisition Date | May 26, 2011 | ||||
Pinehurst Square East [Member] | Minimum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 5 years | |||
Pinehurst Square East [Member] | Maximum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 30 years | |||
Cochran Bypass [Member] | |||||
Initial Cost to Company, Encumbrance | $ 1,513,000 | ||||
Initial Cost to Company, Land | 776,000 | ||||
Initial Cost to Company, Building & Improvements | 1,480,000 | ||||
Cost Capitalized Subsequent to Acquisition | [1] | 30,000 | |||
Gross Amount at Which Carried at Close of Period, Land | 776,000 | ||||
Gross Amount at Which Carried at Close of Period, Building & Improvements | 1,510,000 | ||||
Gross Amount at Which Carried at Close of Period, Total | [2] | 2,286,000 | |||
Accumulated Depreciation | $ (372,000) | ||||
Acquisition Date | Jul. 14, 2011 | ||||
Cochran Bypass [Member] | Minimum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 5 years | |||
Cochran Bypass [Member] | Maximum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 30 years | |||
Topaz Marketplace [Member] | |||||
Initial Cost to Company, Encumbrance | $ 0 | ||||
Initial Cost to Company, Land | 2,120,000 | ||||
Initial Cost to Company, Building & Improvements | 10,724,000 | ||||
Cost Capitalized Subsequent to Acquisition | [1] | (1,553,000) | |||
Gross Amount at Which Carried at Close of Period, Land | 1,900,000 | ||||
Gross Amount at Which Carried at Close of Period, Building & Improvements | 9,391,000 | ||||
Gross Amount at Which Carried at Close of Period, Total | [2] | 11,291,000 | |||
Accumulated Depreciation | $ (1,133,000) | ||||
Acquisition Date | Sep. 23, 2011 | ||||
Topaz Marketplace [Member] | Minimum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 5 years | |||
Topaz Marketplace [Member] | Maximum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 30 years | |||
Morningside Marketplace [Member] | |||||
Initial Cost to Company, Encumbrance | $ 8,629,000 | ||||
Initial Cost to Company, Land | 6,515,000 | ||||
Initial Cost to Company, Building & Improvements | 9,936,000 | ||||
Cost Capitalized Subsequent to Acquisition | [1] | (5,403,000) | |||
Gross Amount at Which Carried at Close of Period, Land | 2,339,000 | ||||
Gross Amount at Which Carried at Close of Period, Building & Improvements | 8,709,000 | ||||
Gross Amount at Which Carried at Close of Period, Total | [2] | 11,048,000 | |||
Accumulated Depreciation | $ (1,399,000) | ||||
Acquisition Date | Jan. 9, 2012 | ||||
Morningside Marketplace [Member] | Minimum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 5 years | |||
Morningside Marketplace [Member] | Maximum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 30 years | |||
Woodland West Marketplace [Member] | |||||
Initial Cost to Company, Encumbrance | $ 9,690,000 | ||||
Initial Cost to Company, Land | 2,376,000 | ||||
Initial Cost to Company, Building & Improvements | 10,494,000 | ||||
Cost Capitalized Subsequent to Acquisition | [1] | 463,000 | |||
Gross Amount at Which Carried at Close of Period, Land | 2,448,000 | ||||
Gross Amount at Which Carried at Close of Period, Building & Improvements | 10,885,000 | ||||
Gross Amount at Which Carried at Close of Period, Total | [2] | 13,333,000 | |||
Accumulated Depreciation | $ (1,903,000) | ||||
Acquisition Date | Feb. 2, 2012 | ||||
Woodland West Marketplace [Member] | Minimum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 5 years | |||
Woodland West Marketplace [Member] | Maximum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 30 years | |||
Ensenada Square [Member] | |||||
Initial Cost to Company, Encumbrance | $ 2,992,000 | ||||
Initial Cost to Company, Land | 1,015,000 | ||||
Initial Cost to Company, Building & Improvements | 3,822,000 | ||||
Cost Capitalized Subsequent to Acquisition | [1] | 235,000 | |||
Gross Amount at Which Carried at Close of Period, Land | 1,015,000 | ||||
Gross Amount at Which Carried at Close of Period, Building & Improvements | 4,057,000 | ||||
Gross Amount at Which Carried at Close of Period, Total | [2] | 5,072,000 | |||
Accumulated Depreciation | $ (741,000) | ||||
Acquisition Date | Feb. 27, 2012 | ||||
Ensenada Square [Member] | Minimum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 5 years | |||
Ensenada Square [Member] | Maximum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 30 years | |||
Shops At Turkey Creek [Member] | |||||
Initial Cost to Company, Encumbrance | $ 2,708,000 | ||||
Initial Cost to Company, Land | 1,416,000 | ||||
Initial Cost to Company, Building & Improvements | 2,398,000 | ||||
Cost Capitalized Subsequent to Acquisition | [1] | (132,000) | |||
Gross Amount at Which Carried at Close of Period, Land | 1,416,000 | ||||
Gross Amount at Which Carried at Close of Period, Building & Improvements | 2,266,000 | ||||
Gross Amount at Which Carried at Close of Period, Total | [2] | 3,682,000 | |||
Accumulated Depreciation | $ (296,000) | ||||
Acquisition Date | Mar. 12, 2012 | ||||
Shops At Turkey Creek [Member] | Minimum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 5 years | |||
Shops At Turkey Creek [Member] | Maximum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 30 years | |||
Florissant Marketplace [Member] | |||||
Initial Cost to Company, Encumbrance | $ 8,859,000 | ||||
Initial Cost to Company, Land | 2,817,000 | ||||
Initial Cost to Company, Building & Improvements | 12,273,000 | ||||
Cost Capitalized Subsequent to Acquisition | [1] | (27,000) | |||
Gross Amount at Which Carried at Close of Period, Land | 2,817,000 | ||||
Gross Amount at Which Carried at Close of Period, Building & Improvements | 12,246,000 | ||||
Gross Amount at Which Carried at Close of Period, Total | [2] | 15,063,000 | |||
Accumulated Depreciation | $ (2,481,000) | ||||
Acquisition Date | May 16, 2012 | ||||
Florissant Marketplace [Member] | Minimum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 5 years | |||
Florissant Marketplace [Member] | Maximum [Member] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed | [3] | 30 years | |||
[1] | The cost capitalized subsequent to acquisition may include negative balances resulting from the write-off and impairment of real estate assets, and parcel sales. | ||||
[2] | The aggregate net tax basis of land and buildings for federal income tax purposes is $68,374,665. | ||||
[3] | Buildings and building improvements are depreciated over their useful lives as shown. Tenant improvements are amortized over the life of the related lease, which with our current portfolio can vary from 1 year to over 30 years. |
SCHEDULE III - REAL ESTATE OP68
SCHEDULE III - REAL ESTATE OPERATING PROPERTIES AND ACCUMULATED DEPRECIATION (Details 1) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Real Estate: | ||||
Balance at the beginning of the year | $ 166,005,000 | $ 174,135,000 | ||
Acquisitions | 0 | 0 | ||
Improvements | 472,000 | 1,356,000 | ||
Dispositions | (80,754,000) | (22,613,000) | ||
Impairment | 0 | (3,900,000) | ||
Balances associated with changes in reporting presentation | [1] | (9,908,000) | 17,027,000 | |
Balance at the end of the year | 75,815,000 | [2] | 166,005,000 | |
Accumulated Depreciation: | ||||
Balance at the beginning of the year | 16,717,000 | 12,009,000 | ||
Depreciation expense | 3,502,000 | 5,546,000 | ||
Dispositions | (9,260,000) | (839,000) | ||
Balances associated with changes in reporting presentation | [1] | (891,000) | 1,000 | |
Balance at the end of the year | $ 10,068,000 | $ 16,717,000 | ||
[1] | The balances associated with changes in reporting presentation represent real estate and accumulated depreciation reclassified as assets held for sale. | |||
[2] | The aggregate net tax basis of land and buildings for federal income tax purposes is $68,374,665. |
SCHEDULE III - REAL ESTATE OP69
SCHEDULE III - REAL ESTATE OPERATING PROPERTIES AND ACCUMULATED DEPRECIATION (Details Textual) | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
SEC Schedule III, Real Estate, Federal Income Tax Basis | $ 68,374,665 | |
Maximum [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation, Life Used for Depreciation | 30 years | [1] |
Minimum [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation, Life Used for Depreciation | 5 years | [1] |
[1] | Buildings and building improvements are depreciated over their useful lives as shown. Tenant improvements are amortized over the life of the related lease, which with our current portfolio can vary from 1 year to over 30 years. |