Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Jun. 30, 2014 | |
Document and Entity Information: | ||
Entity Registrant Name | Hartman Short Term Income Properties XX, Inc. | |
Document Type | 10-K | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1446687 | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 7,373,416 | |
Entity Public Float | $73,734,160 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||
Real estateInvestment property at cost | $115,927,596 | $56,992,904 |
Real estate investment property accumulated depreciation | -12,904,556 | -6,278,801 |
Real estate investment property at cost, net | 103,023,040 | 50,714,103 |
Cash and cash equivalents | 4,428,594 | 143,038 |
Restricted cash | 7,100,000 | |
Accrued rent and accounts receivable, net | 1,388,420 | 518,877 |
Deferred lease commissions and loan costs, net | 2,802,175 | 995,528 |
Goodwill | 249,686 | 249,686 |
Prepaid expenses and other assets | 1,444,319 | 379,804 |
Total assets | 120,436,234 | 53,001,036 |
LIABILITIES | ||
Note payable | 59,617,848 | 2,300,000 |
Accounts payable and accrued expenses | 4,940,892 | 2,545,833 |
Due to related parties | 507,604 | 67,651 |
Tenants' security deposits | 797,842 | 319,258 |
Total liabilities | 65,864,186 | 5,232,742 |
Preferred stock, $0.001 par value, 200,000,000 convertible, non-voting shares authorized, 1,000 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 1 | 1 |
Common stock, $0.001 par value, 750,000,000 authorized, 7,373,416 shares and 6,311,691 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 8,047 | 6,312 |
Additional paid in capital | 74,996,481 | 58,844,825 |
Accumulated distributions and net loss | -20,432,481 | -11,082,844 |
Total stockholders' equity | 54,572,048 | 47,768,294 |
Total liabilities and total stockholders' equity | $120,436,234 | $53,001,036 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | ||
Rental revenues | $10,080,921 | $6,064,190 |
Tenant reimbursements and other revenues | 2,085,509 | 1,249,386 |
Total revenues | 12,166,430 | 7,313,576 |
Expenses | ||
Property operating expenses | 3,063,279 | 1,880,124 |
Asset management and acquisition fees | 1,950,177 | 526,529 |
Organization and offering costs | 463,655 | 543,943 |
Real estate taxes and insurance | 2,015,312 | 1,305,578 |
Depreciation and amortization | 6,625,755 | 3,745,700 |
General and administrative | 758,971 | 696,435 |
Interest expense | 1,704,146 | 766,781 |
Total expenses | 16,581,295 | 9,465,090 |
Loss from continuing operations | -4,414,865 | -2,151,514 |
Income from discontinued operations | 166,641 | |
Net loss | ($4,414,865) | ($1,984,873) |
Basic and diluted loss per common share | ||
Loss attributable to common stockholders | ($0.63) | ($0.43) |
Weighted average number of common shares outstanding, basic and diluted | 7,035,337 | 4,927,708 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Distributions In Excess Of Net Income | Total |
Stockholders' equity, starting balance (value) at Dec. 31, 2013 | $1 | $6,312 | $58,844,825 | ($11,082,844) | $47,768,294 |
Beginning balance - common Stock (shares) at Dec. 31, 2013 | 6,311,691 | 6,311,691 | |||
Beginning balance - preferred Stock (shares) at Dec. 31, 2013 | 1,000 | 1,000 | |||
Issuance of common shares, net of redemption (value) | 0 | 1,735 | 16,988,071 | 0 | 16,989,806 |
Issuance of common shares, net of redemption (shares) | 1,735,441 | 1,735,441 | |||
Selling commissions | 0 | 0 | -836,415 | 0 | -836,415 |
Dividends and distributions | 0 | 0 | 0 | -4,934,772 | -4,934,772 |
Net loss | 0 | 0 | 0 | -4,414,865 | -4,414,865 |
Stockholders' equity, ending balance at Dec. 31, 2014 | $1 | $8,047 | $74,996,481 | ($20,432,481) | $54,572,048 |
Ending balance - common Stock (in shares) at Dec. 31, 2014 | 8,047,132 | 8,047,132 | |||
Ending balance - preferred Stock (in shares) at Dec. 31, 2014 | 1,000 | 1,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
Net loss | ($4,414,865) | ($1,984,873) |
Stock based compensation | 80,000 | 87,500 |
Depreciation and amortization expense | 6,625,755 | 3,745,700 |
Deferred loan and leasing commission costs amortization | 401,097 | 202,642 |
Bad debt provision | 14,972 | 97,583 |
Gain on sale of property | -174,043 | |
(Increase) decrease accrued rent and accounts receivable | -884,515 | -440,301 |
Deferred leasing commmission costs | -1,083,269 | -247,981 |
(Increase) decrease prepaid expenses and other assets | -1,014,515 | -324,941 |
Increase (decrease) accounts payable and accrued expenses | 2,298,970 | 809,710 |
Increase (decrease) on due to related parties | 439,953 | -597,260 |
Increase (decrease) tenants' security deposits | 478,584 | 26,915 |
Net cash provided by (used in) operating activities | 2,942,167 | 1,200,651 |
Acquisition deposit | -50,000 | |
Increase in restricted cash | -7,100,000 | |
Additions to real estate | -58,934,692 | -14,298,900 |
Property disposition | 3,400,000 | |
Net cash used in investing activities | -66,084,692 | -10,898,900 |
Dividend distributions paid in cash | -2,479,545 | -1,681,622 |
Payment of selling commissions | -836,415 | -673,614 |
Payment of deferred loan costs | -1,124,473 | -48,151 |
Borrowings under term loan notes | 60,087,573 | |
Repayments under term loan notes | -469,725 | |
Borrowings under revolving credit facility | 22,644,050 | 7,687,821 |
Repayment of revolving credit advances | -24,944,050 | -20,387,821 |
Proceeds from issuance of common stock, net of redemption | 14,550,666 | 24,882,780 |
Net cash provided by financing activities | 67,428,081 | 9,779,393 |
Net change in cash | 4,285,556 | 81,144 |
Cash and cash equivalents, beginning of period | 143,038 | 61,894 |
Cash and cash equivalents, end of period | $4,428,594 | $143,038 |
Organization_and_Business
Organization and Business | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Organization and Business | Organization and Business |
Hartman Short Term Income Properties XX, Inc. (the “Company”), is a Maryland corporation formed on February 5, 2009. The Company elected to be treated as a real estate investment trust (“REIT”) beginning with the taxable year ending December 31, 2011. Effective July 16, 2013, the Company is offering $200,000,000 of its common shares to the public in its follow-on offering (exclusive of $19,000,000 of its common shares available pursuant to the Company’s distribution reinvestment plan) at a price of $10.00 per share. The offering price for shares offered in the follow-on offering was determined by the Company’s board of directors. The Company’s board of directors may change the price at which the Company offers shares to the public from time to time during the follow-on offering, but not more frequently than quarterly, to reflect changes in the Company’s estimated per-share net asset value and other factors the Company’s board of directors deems relevant. | |
The Company was originally a majority owned subsidiary of Hartman XX Holdings, Inc. Hartman XX Holdings, Inc. is a Texas corporation wholly owned by Allen R. Hartman. The Company sold 19,000 shares to Hartman XX Holdings, Inc. at a price of $10.00 per share. The Company has also issued 1,000 shares of convertible preferred shares to its advisor, Hartman Advisors LLC, at a price of $10.00 per share. Hartman Advisors LLC (the “Advisor”) is the Company’s advisor. The Advisor is owned 70% by Allen R. Hartman and 30% by Hartman Income REIT Management, Inc. (the “Property Manager”). The Property Manager is a wholly owned subsidiary of Hartman Income REIT, Inc. of which approximately 20% is beneficially owned by Allen R. Hartman, the Company’s Chief Executive Officer and Chairman of the Board of Directors. | |
On April 11, 2014 we formed Hartman XX Limited Partnership, a Texas limited partnership (the “Operating Partnership”). On March 7, 2014 we formed Hartman XX REIT GP LLC, a Texas limited liability company, to serve as the sole general partner of the Operating Partnership. We are the sole limited partner of the Operating Partnership. Our single member interests in our limited liability company subsidiaries are owned by the Operating Partnership or its wholly owned subsidiaries. | |
As of December 31, 2014, we had issued 8,257,781 shares of our common stock in our initial and follow-on public offerings, including 532,589 shares of our common stock pursuant to our distribution reinvestment plan, resulting in gross offering proceeds of $80,437,603. Total shares issued and outstanding as of December 31, 2014 include 36,875 shares of our common stock issued as non-employee compensation to members of our board of directors and certain executives of our Property Manager. | |
The management of the Company is through the Advisor. Management of the Company’s properties is through the Property Manager. D.H. Hill Securities, LLLP is the dealer manager for the offering. These parties receive compensation and fees for services related to the offering and for the investment and management of the Company’s assets. These entities will receive fees during the offering, acquisition, operational and liquidation stages. | |
As of December 31, 2014 we owned 9 commercial properties comprising approximately 1,377,422 square feet plus 3 pad sites. We own 4 properties located in Richardson, Arlington, and Dallas, Texas, 4 properties located in Houston, Texas and 1 property located in San Antonio, Texas. As of December 31, 2013 we owned 4 properties located in Richardson, Arlington, and Dallas, Texas comprising approximately 605,244 square feet plus 3 pad sites. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Significant Accounting Policies | Significant Accounting Policies |
Basis of Presentation | |
The accompanying consolidated financial statements as of December 31, 2014 and 2013 and for the years then ended have been prepared by us in accordance with accounting principles generally accepted in the United States and pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-K and Regulation S-K. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. | |
These consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions have been eliminated. | |
Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Reclassifications | |
We have reclassified certain prior fiscal year amounts in the accompanying consolidated financial statements in order to be consistent with the current fiscal year presentation. These reclassifications had no effect on the previously reported working capital or results of operations. | |
Cash and Cash Equivalents | |
All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. Cash and cash equivalents as of December 31, 2014 and 2013 consisted of demand deposits at commercial banks. | |
Restricted Cash | |
Restricted cash represents cash for which the use of funds is restricted by certain loan documents. As of December 31, 2014 and December 31, 2013, the Company had a restricted cash balance of $7,100,000 and $0, respectively, which represent amounts set aside as impounds to be disbursed to the Company (i) upon its achieving incremental occupancy and gross income thresholds at the Richardson Heights Property and the Bent Tree Green Property, and (ii) the completion of certain agreed upon capital repairs at the Cooper Street Property and the Mitchelldale Property. Restricted cash includes $6,500,000 of loan proceeds and $600,000 in cash, which have been deposited in escrow accounts with a loan servicer. | |
Financial Instruments | |
The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, accrued rent and accounts receivable, accounts payable and accrued expenses and due to related parties. The Company considers the carrying value to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. Based on borrowing rates currently available to the Company for loans with similar terms, the carrying value of its note payable approximates fair value. | |
Revenue Recognition | |
Our leases are accounted for as operating leases. Certain leases provide for tenant occupancy during periods for which no rent is due and/or for increases or decreases in the minimum lease payments over the terms of the leases. Revenue is recognized on a straight-line basis over the terms of the individual leases. Revenue recognition under a lease begins when the tenant takes possession of or controls the physical use of the leased space. When the Company acquires a property, the term of existing leases is considered to commence as of the acquisition date for the purposes of this calculation. Accrued rents are included in accrued rent and accounts receivable, net. In accordance with Accounting Standards Codification (“ASC”) 605-10-S99, Revenue Recognition, the Company will defer the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Cost recoveries from tenants are included in tenant reimbursements and other revenue in the period the related costs are incurred. | |
Real Estate | |
Allocation of Purchase Price of Acquired Assets | |
Upon the acquisition of real properties, it is the Company’s policy to allocate the purchase price of properties to acquired tangible assets, consisting of land and buildings, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and leasehold improvements and value of tenant relationships, based in each case on their fair values. The Company utilizes internal valuation methods to determine the fair values of the tangible assets of an acquired property (which includes land and buildings). | |
The fair values of above-market and below-market in-place lease values, including below-market renewal options for which renewal has been determined to be reasonably assured, are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (a) the contractual amounts to be paid pursuant to the in-place leases and (b) an estimate of fair market lease rates for the corresponding in-place leases and below-market renewal options, which is generally obtained from independent appraisals, measured over a period equal to the remaining non-cancelable term of the lease. The above-market and below-market lease and renewal option values are capitalized as intangible lease assets or liabilities and amortized as an adjustment of rental revenue over the remaining expected terms of the respective leases. | |
The fair values of in-place leases include direct costs associated with obtaining a new tenant, opportunity costs associated with lost rentals which are avoided by acquiring an in-place lease, and tenant relationships. Direct costs associated with obtaining a new tenant include commissions, tenant improvements, and other direct costs and are estimated based on independent appraisals and management’s consideration of current market costs to execute a similar lease. These direct costs are included in intangible lease assets and are amortized to expense over the remaining terms of the respective leases. The value of opportunity costs is calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. Customer relationships are valued based on expected renewal of a lease or the likelihood of obtaining a particular tenant for other locations. These intangibles are included in real estate assets in the consolidated balance sheets and are being amortized to expense over the remaining term of the respective leases. | |
The determination of the fair values of the assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, discount rates and other variables. The use of inappropriate estimates would result in an incorrect assessment of the purchase price allocations, which could impact the amount of the Company’s reported net loss. | |
Depreciation and amortization | |
Depreciation is computed using the straight-line method over the estimated useful lives of 5 to 39 years for buildings and improvements. Tenant improvements are depreciated using the straight-line method over the lesser of the life of the improvement or the remaining term of the lease. In-place leases are amortized using the straight-line method over the weighted average years calculated in terms of all of the leases in-place when acquired. | |
Impairment | |
We review our real estate assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of the assets, including accrued rental income, may not be recoverable through operations. We determine whether an impairment in value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), including the estimated residual value of the property, with the carrying cost of the property. If impairment is indicated, a loss will be recorded for the amount by which the carrying value of the property exceeds its fair value. Management has determined that there has been no impairment in the carrying value of our real estate assets as of December 31, 2014 and 2013. | |
Projections of expected future cash flows require management to estimate future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, discount rates, the number of months it takes to release the property and the number of years the property is held for investment. The use of inappropriate assumptions in the future cash flow analysis would result in an incorrect assessment of the property’s future cash flow and fair value and could result in the overstatement of the carrying value of our real estate and related intangible assets and net income. | |
Accrued Rent and Accounts Receivable | |
Included in accrued rent and accounts receivable are base rents, tenant reimbursements and receivables attributable to recording rents on a straight-line basis. An allowance for the uncollectible portion of accrued rent and accounts receivable is determined based upon customer credit-worthiness (including expected recovery of our claim with respect to any tenants in bankruptcy), historical bad debt levels, and current economic trends. | |
Deferred Loan and Leasing Commissions Costs | |
Leasing commissions are capitalized and amortized using the straight-line method over the term of the related lease agreements. Loan costs are capitalized and amortized using the straight-line method over the terms of the loans, which approximates the interest method. | |
Goodwill | |
Generally accepted accounting principles in the United States require the Company to test goodwill for impairment at least annually or more frequently whenever events or circumstances occur indicating goodwill might be impaired. The Company has the option to perform a qualitative assessment to determine if it is more likely than not that the fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value is less than the carrying amount, or if the Company elects to bypass the qualitative assessment, the Company performs a two-step impairment test. In the first step, management compares its net book value of the Company to the carrying amount of goodwill at the balance sheet date. In the event net book value of the Company is less than the carrying amount of goodwill, the Company proceeds to step two and assesses the need to record an impairment charge. For the years ended December 31, 2014 and 2013, no goodwill impairment was recognized in the accompanying consolidated financial statements. | |
Organization and Offering Costs | |
The Company has incurred certain expenses in connection with organizing the company. These costs principally relate to professional and filing fees. | |
For the years ended December 31, 2014 and 2013, such costs totaled $463,655 and $543,943, respectively, which have been expensed as incurred. | |
Organization and offering costs will be reimbursed by the Advisor as set forth in the “Costs of Formation and Fees to Related Parties” section of the prospectus, to the extent that organization and offering costs ultimately exceed 1.5% of gross offering proceeds. As of December 31, 2014 and 2013 the offering and organizational expense incurred in excess of 1.5% of gross offering proceeds is $535,023 and $289,629, respectively. No demand has been made of the Advisor for reimbursement as of December 31, 2014 and no receivable has been recorded with respect to the excess costs as of that date. | |
Stock-Based Compensation | |
The Company follows ASC 718- Compensation- Stock Compensation with regard to issuance of stock in payment of services. ASC 718 requires that compensation cost relating to share-based payment transactions be recognized in the consolidated financial statements. The compensation cost is measured based on the fair value of the equity or liability instruments issued. | |
Stock-based compensation expense is included in general and administrative expense in the accompanying consolidated statements of operations. | |
Advertising | |
The Company expenses advertising costs as incurred and such costs are included in general and administrative expenses in the accompanying consolidated statements of operations. Advertising costs totaled $77,954 and $17,470 for the years ended December 31, 2014 and 2013, respectively. | |
Income Taxes | |
We have elected to be treated as a REIT under the Internal Revenue Code of 1986, as amended, beginning with our taxable year ended December 31, 2011. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income to stockholders (which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax on income that it distributes as dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially and adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes that it is organized and will operate in such a manner as to qualify for treatment as a REIT. | |
For the years ended December 31, 2014 and 2013, the Company incurred a net loss of $4,414,865 and $1,984,873, respectively. The Company does not currently anticipate forming any taxable REIT subsidiaries or otherwise generating future taxable income which may be offset by the net loss carry forward. The Company considers that any deferred tax benefit and corresponding deferred tax asset which may be recorded in light of the net loss carry forward would be properly offset by an equal valuation allowance in that no future taxable income is expected. Accordingly no deferred tax benefit or deferred tax asset has been recorded in the consolidated financial statements. | |
The Company is required to recognize in its consolidated financial statements the financial effects of a tax position only if it is determined that it is more likely than not that the tax position will not be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Management has reviewed the Company’s tax positions and is of the opinion that material positions taken by the Company would more likely than not be sustained upon examination. Accordingly, the Company has not recognized a liability related to uncertain tax positions. | |
Loss Per Share | |
The computations of basic and diluted loss per common share are based upon the weighted average number of common shares outstanding and potentially dilutive securities. The Company’s potentially dilutive securities include preferred shares that are convertible into the Company’s common stock. As of December 31, 2014 and 2013, there were no shares issuable in connection with these potentially dilutive securities. These potentially dilutive securities were excluded from the computations of diluted net loss per share for the years ended December 31, 2014 and 2013 because no shares are issuable and inclusion of such potentially dilutive securities would have been anti-dilutive. | |
Concentration of Risk | |
We maintain cash accounts in one U.S. financial institution. The terms of these deposits are on demand to minimize risk. The balances of these accounts may exceed the federally insured limits. No losses have been incurred in connection with these deposits. | |
Real_Estate
Real Estate | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Notes | |||||
Real Estate | Real Estate | ||||
Real estate assets consisted of the following: | |||||
December 31, | |||||
2014 | 2013 | ||||
Land | $ 26,829,000 | $ 12,816,250 | |||
Buildings and improvements | 60,687,858 | 33,420,171 | |||
In-place lease value intangible | 28,410,738 | 10,756,483 | |||
115,927,596 | 56,992,904 | ||||
Less accumulated depreciation and amortization | (12,904,556) | -6,278,801 | |||
Total real estate assets | $ 103,023,040 | $ 50,714,103 | |||
Depreciation expense for the years ended December 31, 2014 and 2013 was $2,283,389 and $1,181,669, respectively. | |||||
We identify and record the value of acquired lease intangibles at the property acquisition date. Such intangibles include the value of acquired in-place leases and above and below-market leases. Acquired lease intangibles are amortized over the leases' remaining terms. With respect to all properties owned by the Company, we consider all of the in-place leases to be market rate leases. | |||||
The amount of total in-place lease intangible asset and the respective accumulated amortization are as follows: | |||||
December 31, | |||||
2014 | 2013 | ||||
In-place lease value intangible | $ 28,410,738 | $ 10,756,483 | |||
In-place leases – accumulated amortization | (8,595,599) | -4,253,233 | |||
Acquired lease intangible assets, net | $ 19,815,139 | $ 6,503,250 | |||
The estimated aggregate future amortization amounts from acquired lease intangibles are as follows: | |||||
Year ending December 31, | In-place lease amortization | ||||
2015 | $ 6,460,995 | ||||
2016 | 6,391,384 | ||||
2017 | 4,960,252 | ||||
2018 | 1,369,020 | ||||
2019 | 388,925 | ||||
Thereafter | 244,563 | ||||
Total | $ 19,815,139 | ||||
Amortization expense for the year ended December 31, 2014 and 2013 was $4,342,366 and $2,564,031, respectively. | |||||
As of December 31, 2014 we own 9 commercial properties comprising approximately 1,377,422 square feet plus 3 pad sites. We own 4 properties located in Richardson, Arlington, and Dallas, Texas, 4 properties in Houston, Texas and 1 property located in San Antonio, Texas. As of December 31, 2013 we owned 4 commercial properties located in Richardson, Arlington, and Dallas, Texas comprising approximately 605,244 square feet plus 3 pad sites. | |||||
On March 15, 2013, the Company acquired two office buildings comprising approximately 136,506 square feet located in Dallas, Texas commonly known as Parkway I & II (the “Parkway Property”) through Hartman Parkway, LLC (“Parkway LLC”), a wholly owned subsidiary of the Company. Parkway LLC acquired the Parkway Property for $9,490,000, exclusive of closing costs. The Parkway Property was 68% occupied at the acquisition date. An acquisition fee of $237,250 was earned by the Advisor in connection with the purchase of the Parkway Property. | |||||
The following table summarizes the fair values of the Parkway Property assets acquired and liabilities assumed based upon our purchase price allocation as of the acquisition date: | |||||
Assets acquired: | |||||
Real estate assets | $ 9,490,000 | ||||
Total assets acquired | 9,490,000 | ||||
Liabilities assumed: | |||||
Accounts payable and accrued expenses | 32,034 | ||||
Tenants’ security deposits | 49,768 | ||||
Total liabilities assumed | 81,802 | ||||
Fair value of net assets acquired | $ 9,408,198 | ||||
On March 11, 2014, the Company acquired an office building comprising approximately 120,651 square feet located in Houston, Texas, commonly known as Gulf Plaza (the “Gulf Plaza Property”) through Hartman Gulf Plaza LLC (“Gulf Plaza LLC”), a wholly owned subsidiary of the Operating Partnership. The Gulf Plaza Property was acquired for $13,950,000, exclusive of closing costs, from fourteen tenant-in-common investors, including Hartman Gulf Plaza Acquisitions, LP (“Acquisitions”) which owned 1% of the Gulf Plaza Property. Acquisitions is an affiliate of our Property Manager, which indirectly owns approximately 15% of Acquisitions. The Gulf Plaza Property was 100% occupied at the acquisition date. An acquisition fee of $348,750 was earned by the Advisor in connection with the purchase of the Gulf Plaza Property. | |||||
On June 13, 2014, the Operating Partnership acquired an office/industrial business park comprising approximately 377,752 square feet located in Houston, Texas, commonly known as Mitchelldale Business Park (the “Mitchelldale Property”) through Hartman Mitchelldale Business Park, LLC (“Mitchelldale LLC”), a wholly owned indirect subsidiary of the Operating Partnership. The Mitchelldale Property was acquired for $19,175,000, exclusive of closing costs, from an unrelated party. The Mitchelldale Property was approximately 89% occupied at the acquisition date. An acquisition fee of $479,375 was earned by the Advisor in connection with the purchase of the Mitchelldale Property. | |||||
On December 30, 2014, the Operating Partnership acquired a two building office complex comprising approximately 180,119 square feet located in San Antonio, Texas, commonly known as Energy Plaza I & II (the “Energy Plaza Property”) through Hartman Energy, LLC (“Energy LLC”) a wholly owned subsidiary of the Operating Partnership. The Energy Plaza Property was acquired for $17,610,000, exclusive of closing costs, from an unrelated party. In connection with the acquisition of the Energy Plaza Property, Energy LLC assumed a securitized mortgage in the outstanding principal amount of $10,362,573. The Energy Plaza Property was approximately 95% occupied at the acquisition date. An acquisition fee of $440,250 was earned by the Advisor in connection with the purchase of the Energy Plaza Property. | |||||
On December 30, 2014, the Operating Partnership acquired two suburban office buildings located in northwest Houston, Texas commonly known as the Copperfield Building (the “Copperfield Building”) and Timbercreek Atrium (the “Timbercreek Atrium”) comprising approximately 42,621 square feet and 51,035 square feet, respectively. The Copperfield Building and Timbercreek Atrium were acquired by Hartman Highway 6 LLC (“Highway 6 LLC”) a wholly owned subsidiary of the Operating Partnership for $5,316,000, exclusive of closing costs, from an unrelated party. The Copperfield Building and Timbercreek Atrium were each approximately 80% occupied at the acquisition date. An acquisition fee of $132,900 was earned by the Advisor in connection with the purchase of the Copperfield Building and Timbercreek Atrium. | |||||
The following table summarizes the fair values of the assets acquired and liabilities assumed based upon our purchase price allocations of our 2014 property acquisitions as of the respective acquisition dates: | |||||
Gulf Plaza | Mitchelldale | Energy Plaza | Timbercreek/Copperfield | ||
Assets acquired: | |||||
Real estate assets | $ 13,950,000 | $ 19,175,000 | $ 17,610,000 | $ 5,316,000 | |
Other assets | 112,316 | 102,268 | 681,960 | - | |
Total assets acquired | 14,062,316 | 19,277,268 | 18,291,960 | 5,316,000 | |
Liabilities assumed: | |||||
Accounts payable and accrued expenses | 292,347 | 219,548 | 443,142 | 71,613 | |
Security deposits | - | 196,850 | 200,638 | 5,128 | |
Note payable | - | - | 10,362,573 | - | |
Total liabilities assumed | 292,347 | 416,398 | 11,006,353 | 76,741 | |
Fair value of net assets acquired | $ 13,769,969 | $ 18,860,870 | $ 7,285,607 | $ 5,239,259 | |
Acquisition fees paid to Advisor were $1,401,275 and $156,870 for the years ended December 31, 2014 and 2013, respectively. Asset management fees paid to Advisor were $548,902 and $369,659 for the years ended December 31, 2014 and 2013, respectively. Asset management and acquisition fees are captioned as such in the accompanying consolidated statements of operations for the years ended December 31, 2014 and 2013, respectively. | |||||
The Company’s indirect wholly owned subsidiary, Hartman Richardson Heights Properties, LLC (“HRHP LLC”), and the City of Richardson, Texas are parties to an economic development incentive agreement. Under the terms of the agreement, the City of Richardson will pay annual grants to HRHP LLC in equal installments over a five year period of up to $1.5 million and sales tax grants to be paid annually over the first 10 years of the Alamo Draft House lease. The Company has received installments of $300,000 in each of the years ended December 31, 2014 and 2013, respectively, which are included in tenant reimbursements and other revenues on the consolidated statements of operations. For the year ended December 31, 2014, the Company received a sales tax grant of $43,379 pursuant to the economic development incentive agreement, which is included in tenant reimbursements and other revenues on the consolidated statements of operations. | |||||
Payments received by the Company in the form of annual grants and annual sales tax grants are subject to refund or adjustment during the term of the economic development incentive agreement. In general the incentive agreement provides that the Company must continue to be in good standing with respect to the terms and conditions of the agreement and that the Alamo Draft House lessee must continue as a tenant of the Richardson Heights Property during the term of its lease agreement. As of December 31, 2014, no uncured breach or default exists under the terms of the incentive agreement and the Company has no liability or other obligation to repay any grants received under the agreement. | |||||
Accrued_Rent_and_Accounts_Rece
Accrued Rent and Accounts Receivable, Net | 12 Months Ended | ||
Dec. 31, 2014 | |||
Notes | |||
Accrued Rent and Accounts Receivable, Net | Accrued Rent and Accounts Receivable, net | ||
Accrued rent and accounts receivable, net, consisted of the following: | |||
Years ended December 31, | |||
2014 | 2013 | ||
Tenant receivables | $361,373 | $312,218 | |
Accrued rent | 1,243,985 | 467,544 | |
Allowance for doubtful accounts | -216,938 | -260,885 | |
Accrued Rents and Accounts Receivable, net | $1,388,420 | $518,877 | |
As of December 31, 2014 and 2013, we had an allowance for uncollectible accounts of $216,938 and $260,885, respectively. For the years ended December 31, 2014 and 2013, we recorded bad debt expense of $14,972 and $97,583, respectively, related to tenant receivables that we have specifically identified as potentially uncollectible based on our assessment of each tenant’s credit-worthiness. Bad debt expenses and any related recoveries are included in property operating expenses in the accompanying consolidated statements of operations. | |||
Deferred_Loan_and_Leasing_Comm
Deferred Loan and Leasing Commission Costs | 12 Months Ended | ||
Dec. 31, 2014 | |||
Notes | |||
Deferred Loan and Leasing Commission Costs | Deferred Loan and Leasing Commission Costs | ||
Costs which have been deferred consist of the following: | |||
2014 | 2013 | ||
Deferred loan costs | $ 1,172,624 | $ 475,688 | |
Less: deferred loan cost accumulated amortization | -106,256 | -304,617 | |
Total cost, net of accumulated amortization | $ 1,066,368 | $ 171,071 | |
2014 | 2013 | ||
Deferred Leasing Commissions | $ 1,956,892 | $ 908,869 | |
Less: deferred leasing commissions accumulated amortization | -221,085 | -84,412 | |
Total cost, net of accumulated amortization | $ 1,678,847 | $ 824,457 | |
Future_Minimum_Rents
Future Minimum Rents | 12 Months Ended | |
Dec. 31, 2014 | ||
Notes | ||
Future Minimum Rents | Future Minimum Rents | |
We lease the majority of our properties under noncancelable operating leases which provide for minimum base rentals. A summary of minimum future rentals to be received (exclusive of renewals, tenant reimbursements, and contingent rentals) under noncancelable operating leases in existence | ||
at December 31, 2014 is as follows: | ||
Year ending December 31, | Minimum Future Rents | |
2015 | $ 15,251,990 | |
2016 | 13,627,376 | |
2017 | 11,409,806 | |
2018 | 6,919,732 | |
2019 | 4,961,272 | |
Thereafter | 14,862,925 | |
Total 2015 - 2020 | $ 67,033,101 | |
Notes_Payable
Notes Payable | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Notes | |||||
Notes Payable | Notes Payable | ||||
The Company is a party to a $30.0 million revolving credit agreement (the “Credit Facility”) with a bank. The borrowing base of the Credit Facility may be adjusted from time to time subject to the lender’s underwriting with respect to real property collateral. The Credit Facility was secured by the Richardson Heights Property; the Cooper Street Property; the Bent Tree Green Property and the Parkway Property. On June 13, 2014, the Company entered into a modification agreement pursuant to which the Richardson Heights Property, the Cooper Street Property, and the Bent Tree Green Property were released as collateral for the Credit Facility. The borrowing base of the Credit Facility was reduced to zero. On July 2, 2014, the Company entered into a further modification agreement of the Credit Facility to add the Gulf Plaza Property as collateral and the borrowing base of the Credit Facility, as further modified, was increased to $7.0 million. Effective January 23, 2015, the Company entered into a modification agreement of the Credit Facility to add the Timbercreek and Copperfield properties as collateral to the borrowing base. As currently modified, the borrowing base of the Credit Facility is $9.9 million. The Credit Facility note bears interest at greater of 4.5% per annum or the bank’s prime rate plus 1% per annum. The interest rate was 4.5% per annum as of December 31, 2014. The loan matures on May 9, 2015. | |||||
The outstanding balance under the Credit Facility was $0 and $2.3 million as of December 31, 2014 and 2013, respectively. As of December 31, 2014 the amount available to be borrowed is $7.0 million. As of December 31, 2014, we were in compliance with all loan covenants. | |||||
On June 13, 2014, the Company, through the Operating Partnership, entered into four term loan agreements with an insurance company, each loan being secured by a collateral property. The following is a summary of the mortgage notes payable as of December 31, 2014: | |||||
Property Name | Payment Type | Maturity Date | Interest Rate | Principal Balance | |
Richardson Heights Property | Principal and interest | 1-Jul-41 | 4.61% | $ 20,009,181 | |
Cooper Street Property | Principal and interest | 1-Jul-41 | 4.61% | 8,320,650 | |
Bent Tree Green Property | Principal and interest | 1-Jul-41 | 4.61% | 8,320,650 | |
Mitchelldale Property | Principal and interest | 1-Jul-41 | 4.61% | 12,604,794 | |
$ 49,255,275 | |||||
Monthly payments of principal and interest are due and payable on the first day of each month beginning August 1, 2014 until July 1, 2041 based on a 27 year loan amortization. Each promissory note contains a call option wherein the holder of the promissory note may declare the outstanding balance due and payable on either July 1, 2024; July 1, 2029; July 1, 2034; or July 1, 2039. Each of the loan agreements are subject to customary covenants, representations and warranties which must be maintained during the term of the loan agreements. As of December 31, 2014, we were in compliance with all loan covenants. Each of the loan agreements are secured by a deed of trust; assignment of licenses, permits and contracts; assignment and subordination of the management agreements; and assignment of rents. The terms of the security instruments provide for the cross collateralization/cross default of the each of the loans. | |||||
In connection with the loans secured by the Richardson Heights Property and the Bent Tree Green Property, the Company has entered into a reserve agreement with the lender which requires that loan proceeds of $5,525,000 and $975,000, respectively, be deposited with the loan servicer. The escrowed loan proceeds will be released to the Company upon satisfactory showing of increased annualized rental income from new lease agreements as set forth in the reserve agreement. In connection with the loans secured by the Cooper Street Property and the Mitchelldale Property, the Company entered into a post-closing agreement with the lender requiring the short term escrow of $600,000 for certain capital repairs to be completed during 2014 together with the delivery of certain other documents as set forth in the post-closing agreement. Loan proceeds and other reserve funds held pursuant to the reserve agreement and the post-closing agreement are recorded as restricted cash on the accompanying consolidated balance sheets. The lender has extended the time for completing certain capital repairs and matters related to the reserve and post-closing agreements until March 27, 2015. | |||||
Under the terms of the reserve agreement, the Company may draw upon the escrow reserve funds until December 31, 2016. Thereafter, the lender shall have the right to draw any remaining escrow reserve funds and apply such funds to one or more of the loans as the lender may determine in its sole discretion. | |||||
On December 30, 2014, Energy LLC and the Company entered into a loan assumption agreement by and among U.S. Bank National Association, as Trustee for Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through Certificates, Series 2011-C-3, as lender; BRI 1841 Energy Plaza, LLC, as borrower; Ariel Bentata, as guarantor; Hartman Energy LLC, as buyer; and the Company, as the new guarantor. The loan in the original amount of $10,900,000 and dated May 20, 2011, is evidenced by a promissory note, a deed of trust, assignment of leases and rents and security agreement. The loan agreement provides for a fixed rate of 5.30% per annum. The outstanding balance of the loan assumed was $10,362,573. The loan maturity date is June 10, 2021. Monthly payments of principal and interest are due and payable on the tenth day of each month beginning January 11, 2015 until June 10, 2021 based on a 30 year loan amortization. The loan agreement is subject to customary covenants, representations and warranties which must be maintained during the term of the loan agreement. As of December 31, 2014, we were in compliance with all loan covenants. The loan agreement is secured by a deed of trust; assignment of licenses, permits and contracts; assignment and subordination of the management agreements; and assignment of rents. | |||||
Annual maturities of notes payable as of December 31, 2014 are as follows: | |||||
Year ending December 31, | Amount Due | ||||
2015 | $ 1,146,255 | ||||
2016 | 1,200,059 | ||||
2017 | 1,259,576 | ||||
2018 | 1,320,431 | ||||
2019 | 1,384,236 | ||||
Thereafter | 53,307,291 | ||||
Total | $ 59,617,848 | ||||
Interest expense incurred for the year ending December 31, 2014 and 2013 was $1,735,430 and $766,781, respectively. Interest expense of $52,962 and $16,769 was payable as of December 31, 2014 and 2013, respectively, and is included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. | |||||
Loss_Per_Share
Loss Per Share | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Notes | ||||
Loss Per Share | Loss Per Share | |||
Basic earnings (loss) per share is computed using net income (loss) attributable to common stockholders and the weighted average number of common shares outstanding. Diluted weighted average shares outstanding reflect common shares issuable from the assumed conversion of convertible preferred stock into common shares. Only those items that have a dilutive impact on basic earnings (loss) per share are included in the diluted earnings (loss) per share. | ||||
Years ended December 31, | ||||
2014 | 2013 | |||
Numerator: | ||||
Net loss attributable to common stockholders | ($4,414,865) | ($1,984,873) | ||
Denominator: | ||||
Basic and diluted weighted average shares outstanding | 7,035,337 | 4,927,708 | ||
Basic and diluted loss per common share: | ||||
Net loss attributable to common stockholders | ($0.63) | ($0.40) | ||
Income_Taxes
Income Taxes | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Notes | ||||
Income Taxes | Income Taxes | |||
Federal income taxes are not provided for because we qualify as a REIT under the provisions of the Internal Revenue Code and because we have distributed and intend to continue to distribute all of our taxable income to our stockholders. Our stockholders include their proportionate taxable income in their individual tax returns. As a REIT, we must distribute at least 90% of our real estate investment trust taxable income to our stockholders and meet certain income sources and investment restriction requirements. In addition, REITs are subject to a number of organizational and operational requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate tax rates. The Company’s federal income tax returns for the years ended December 31, 2011, 2012, and 2013 have not been examined by the Internal Revenue Service. The Company’s federal income tax return for the year ended December 31, 2011 may be examined on or before September 15, 2015. | ||||
Taxable income differs from net income for financial reporting purposes principally due to differences in the timing of recognition of interest, real estate taxes, depreciation and amortization and rental revenue. | ||||
For Federal income tax purposes, the cash distributed to stockholders was characterized as follows for the years ended December 31: | ||||
2014 | 2013 | |||
Ordinary income (unaudited) | 27.70% | 24.50% | ||
Return of capital (unaudited) | 72.30% | 75.50% | ||
Capital gains distribution (unaudited) | - % | - % | ||
Total | 100.00% | 100.00% | ||
A provision for Texas Franchise tax under the Texas Margin Tax Bill in the amount of $81,133 and $51,413 was recorded in the consolidated financial statements for the years ended December 31, 2014 and 2013, respectively, with a corresponding charge to real estate taxes and insurance. | ||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Notes | ||||
Related Party Transactions | Related Party Transactions | |||
Hartman Advisors LLC, is a Texas limited liability company owned 70% by Allen R. Hartman individually and 30% by the Property Manager. The Property Manager is a wholly owned subsidiary of Hartman Income REIT Management, LLC, which is wholly owned by Hartman Income REIT, Inc. and Subsidiaries of which approximately 20% is owned by Allen R. Hartman who is the Chief Executive Officer and Chairman of the Board of Directors. | ||||
We pay acquisition fees and asset management fees to our Advisor in connection with the acquisition of properties and management of the Company. We pay property management and leasing commissions to our Property Manager in connection with the management and leasing of our properties. For the years ended December 31, 2014 and 2013 we incurred property management fees of $503,667 and $272,799, respectively, and $1,048,023 and $247,981, respectively for leasing commissions owed to our Property Manager. We incurred asset management fees of $548,902 and $369,659, respectively owed to Advisor. Acquisition fees incurred to our Advisor were $1,401,275 and $156,870 for the years ended December 31, 2014 and 2013, respectively. | ||||
The Company had a balance due from the Property Manager of $888,901 and $578,919 as of December 31, 2014 and December 31, 2013, respectively, | ||||
The Company owed the Advisor $1,427,261 and $488,502 for asset management fees as of December 31, 2014 and December 31, 2013, respectively. These fees are monthly fees equal to one-twelfth of 0.75% of the sum of the higher of the cost or value of each asset. The asset management fee will be based only on the portion of the cost or value attributable to the Company’s investment in an asset, if we do not own all or a majority of an asset. | ||||
The Company owed ($31,366) and $158,068 to Hartman Short Term Income Properties XIX, Inc. (“Hartman XIX”) as of December 31, 2014 and December 31, 2013, respectively, pursuant to the property and company management agreements amount Hartman Income REIT Management and Hartman XIX and its subsidiaries. | ||||
Effective March 28, 2013, the Company sold to Hartman XIX a retail shopping center located in Houston, Texas comprising approximately 38,813 square feet and commonly referred to as the Harwin Property. The terms of the sale and purchase were agreed upon and approved by both the boards of directors of the Company and of Hartman XIX. The Company sold the Harwin Property for $3,400,000 cash. The Company recognized a $174,043 gain on the sale. | ||||
Income (loss) from discontinued operations with respect to the Harwin Property is as follows: | ||||
Years ended December 31, | ||||
2014 | 2013 | |||
Total property revenues | $ - | $ 65,115 | ||
Property operating expenses | - | 53,745 | ||
Real estate taxes and insurance | - | 18,772 | ||
Depreciation & amortization | - | - | ||
Total property and other expenses | - | 72,517 | ||
Gain on sale of property | - | 174,043 | ||
Income (loss) from discontinued operations | $ - | $ 166,641 | ||
The Gulf Plaza Property was acquired from fourteen tenant-in-common investors, including Hartman Gulf Plaza Acquisitions, LP (“Acquisitions”) which owned 1% of the Gulf Plaza Property. Acquisitions is an affiliate of our Property Manager, which indirectly owned approximately 15% of Acquisitions. [THIS IS DISCUSSED IN THE REAL ESTATE NOTE] |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Notes | ||||
Stockholders' Equity | Stockholders’ Equity | |||
Common Stock | ||||
Shares of common stock entitle the holders to one vote per share on all matters which stockholders are entitled to vote, to receive dividends and other distributions as authorized by the Company’s board of directors in accordance with the Maryland General Corporation Law and to all rights of a stockholder pursuant to the Maryland General Corporation Law. The common stock has no preferences or preemptive, conversion or exchange rights. | ||||
Under our articles of incorporation, we have authority to issue 750,000,000 common shares of beneficial interest, $0.001 par value per share, and 200,000,000 preferred shares of beneficial interest, $0.001 par value per share. | ||||
As of December 31, 2014, the Company has accepted investors’ subscriptions for and issued 7,725,192 shares of the Company’s common stock it is public offering, resulting in gross proceeds to the Company of $75,378,007. | ||||
Preferred Stock | ||||
Under our articles of incorporation the Company’s board of directors has the authority to issue one or more classes or series of preferred stock, and prior to the issuance of such stock, the board of directors shall have the power to classify or reclassify, in one or more series, any unissued shares and designate the preferences, rights and privileges of such shares. As of December 31, 2014 and 2013 we have issued 1,000 shares of convertible preferred shares to Hartman Advisors LLC at a price of $10.00 per share. | ||||
Common Stock Issuable Upon Conversion of Convertible Preferred Stock | ||||
The convertible preferred stock will convert to shares of common stock if (1) the Company has made total distributions on then outstanding shares of the Company’s common stock equal to the issue price of those shares plus a 6% cumulative, non-compounded, annual return on the issue price of those outstanding shares, (2) the Company lists its common stock for trading on a national securities exchange if the sum of prior distributions on then outstanding shares of our common stock plus the aggregate market value of our common stock (based on the 30-day average closing price) meets the same 6% performance threshold, or (3) the Company’s advisory agreement with Hartman Advisors, LLC expires without renewal or is terminated (other than because of a material breach by our advisor), and at the time of such expiration or termination the Company is deemed to have met the foregoing 6% performance threshold based on the Company’s enterprise value and prior distributions and, at or subsequent to the expiration or termination, the shareholders actually realize such level of performance upon listing or through total distributions. In general, the convertible stock will convert into shares of common stock with a value equal to 15% of the excess of the Company’s enterprise value plus the aggregate value of distributions paid to date on then outstanding shares of common stock over the aggregate issue price of those outstanding shares plus a 6% cumulative, non-compounded, annual return on the issue price of those outstanding shares. With respect to conversion in connection with the termination of the advisory agreement, this calculation is made at the time of termination even though the actual conversion may occur later, or not at all. | ||||
Stock-Based Compensation | ||||
We award vested restricted common shares to non-employee directors as compensation in part for their service as members of the board of directors of the Company. These shares are fully vested when granted. These shares may not be sold while an independent director is serving on the board of directors. For the years ended December 31, 2014 and 2013, respectively, the Company granted 6,000 and 6,750 shares of restricted common stock to independent directors as compensation for services. We recognized $60,000 and $67,500 as share-based compensation expense for the years ended December 31, 2014 and 2013, respectively, based upon the estimated fair value per share. Share based compensation also includes incentive plan awards discussed at Note 12. These amounts are included in general and administrative expenses for the years ending December 31, 2014 and 2013, respectively in the accompanying consolidated statements of operations. | ||||
Distributions | ||||
The following table reflects the total distributions we have paid in cash and through the distribution reinvestment plan, including the total amount paid and amount paid per common share, in each indicated quarter: | ||||
Quarter Paid | Distributions per Common Share | Total Distributions Paid | ||
2014 | ||||
4th Quarter | $ 0.175 | $ 1,306,358 | ||
3rd Quarter | 0.175 | 1,237,568 | ||
2nd Quarter | 0.175 | 1,191,153 | ||
1st Quarter | 0.175 | 1,103,599 | ||
Total | $ 0.700 | $ 4,838,678 | ||
2013 | ||||
4th Quarter | $ 0.175 | $ 1,033,066 | ||
3rd Quarter | 0.175 | 854,120 | ||
2nd Quarter | 0.175 | 760,551 | ||
1st Quarter | 0.175 | 627,754 | ||
Total | $ 0.700 | $ 3,275,491 | ||
Incentive_Awards_Plan
Incentive Awards Plan | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Incentive Awards Plan | Incentive Awards Plan |
The Company has adopted an incentive plan (the “Omnibus Stock Incentive Plan” or the “Incentive Plan”) that provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, deferred stock awards, restricted stock awards, dividend equivalent rights and other stock-based awards within the meaning of Internal Revenue Code Section 422, or any combination of the foregoing. We have initially reserved 5,000,000 shares of our common stock for the issuance of awards under our stock incentive plan, but in no event more than ten (10%) percent of our issued and outstanding shares. The number of shares reserved under our stock incentive plan is also subject to adjustment in the event of a stock split, stock dividend or other change in our capitalization. Generally, shares that are forfeited or canceled from awards under our stock incentive plan also will be available for future awards. The Compensation Committee of the Board of Directors approved awards of 1,000 shares of restricted common stock that were effective January 1, 2014 and 2013 to each of two executives of Hartman Income REIT Management, the Property Manager for the Company. We recognized stock-based compensation expense of $20,000 and $20,000 with respect to these awards based on the offering price of $10 per share during the years ending December 31, 2014 and 2013, respectively. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Commitments and Contingencies | Commitments and Contingencies |
Economic Dependency | |
The Company is dependent on the Property Manager, the Advisor and the Dealer Manager for certain services that are essential to the Company, including the sale of the Company’s shares of common stock and preferred stock available for issue; the identification, evaluation, negotiation, purchase and disposition of properties, management of the daily operations of the Company’s real estate portfolio, and other general and administrative responsibilities. In the event that these companies are unable to provide the respective services, the Company will be required to obtain such services from other providers. | |
Litigation | |
The Company is subject to various claims and legal actions that arise in the ordinary course of business. Management of the Company believes that the final disposition of such matters will not have a material adverse effect on the financial position of the Company. | |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Subsequent Events | Subsequent Events |
On March 2, 2015 we announced our intention to terminate our continuous public offering by December 31, 2015. Our board of directors continues to evaluate potential liquidity events to maximize the total potential return to our stockholders, including, but not limited to, merging the Company with its affiliates Hartman Income REIT, Inc. and Hartman Short Term Income Properties XIX, Inc., followed by a public listing of our common shares. Management currently estimates the possible timing for such a liquidity event to be during the first half of 2016. | |
The Company has not made a decision to pursue any specific liquidity event, and there can be no assurance that the Company will complete a liquidity event on the terms described above or at all. There is no set timetable for completion of the Company’s review of strategic alternatives and there can be no assurances that the review process will result in any liquidity event being announced or completed. | |
On March 12, 2015, Hartman Short Term Income Properties XX, Inc. (the “Company”), through Hartman XX Limited Partnership, entered into a purchase and sale and escrow agreement with 12830 Hillcrest Road Investors LP, relating to the acquisition of an office building commonly known as Commerce Plaza Hillcrest (the “Hillcrest Building”), containing 203,688 square feet of office space located in Dallas, Texas for an aggregate purchase price of $11,400,000, exclusive of closing costs. The Company intends to finance the acquisition of the Hillcrest Building with proceeds from its ongoing public offering and financing secured by the Hillcrest Building. | |
The acquisition of the Hillcrest Building is subject to substantial conditions to closing, including the absence of a material adverse change to the Hillcrest Building prior to the acquisition date. There is no assurance that the Company will close the acquisition of the Hillcrest Building on the terms described above or at all. | |
On March 24, 2015, the Company, through Hartman XX Limited Partnership, entered into a purchase and sale … | |
For the period from January 1, 2015 to March 23, 2015, the Company issued 1,006,840 shares of its common stock from its public offering, resulting in gross proceeds of $9,656,284. As of March 23, 2015 there were 9,053,901 shares of common stock issued and outstanding. | |
Significant_Accounting_Policie1
Significant Accounting Policies: Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Basis of Presentation | Basis of Presentation |
The accompanying consolidated financial statements as of December 31, 2014 and 2013 and for the years then ended have been prepared by us in accordance with accounting principles generally accepted in the United States and pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-K and Regulation S-K. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. | |
These consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions have been eliminated. | |
Significant_Accounting_Policie2
Significant Accounting Policies: Use of Estimates (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Significant_Accounting_Policie3
Significant Accounting Policies: Reclassifications (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Reclassifications | Reclassifications |
We have reclassified certain prior fiscal year amounts in the accompanying consolidated financial statements in order to be consistent with the current fiscal year presentation. These reclassifications had no effect on the previously reported working capital or results of operations. | |
Significant_Accounting_Policie4
Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. Cash and cash equivalents as of December 31, 2014 and 2013 consisted of demand deposits at commercial banks. | |
Significant_Accounting_Policie5
Significant Accounting Policies: Restricted Cash (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Restricted Cash | Restricted Cash |
Restricted cash represents cash for which the use of funds is restricted by certain loan documents. As of December 31, 2014 and December 31, 2013, the Company had a restricted cash balance of $7,100,000 and $0, respectively, which represent amounts set aside as impounds to be disbursed to the Company (i) upon its achieving incremental occupancy and gross income thresholds at the Richardson Heights Property and the Bent Tree Green Property, and (ii) the completion of certain agreed upon capital repairs at the Cooper Street Property and the Mitchelldale Property. Restricted cash includes $6,500,000 of loan proceeds and $600,000 in cash, which have been deposited in escrow accounts with a loan servicer. | |
Significant_Accounting_Policie6
Significant Accounting Policies: Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Financial Instruments | Financial Instruments |
The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, accrued rent and accounts receivable, accounts payable and accrued expenses and due to related parties. The Company considers the carrying value to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. Based on borrowing rates currently available to the Company for loans with similar terms, the carrying value of its note payable approximates fair value. | |
Significant_Accounting_Policie7
Significant Accounting Policies: Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Revenue Recognition | Revenue Recognition |
Our leases are accounted for as operating leases. Certain leases provide for tenant occupancy during periods for which no rent is due and/or for increases or decreases in the minimum lease payments over the terms of the leases. Revenue is recognized on a straight-line basis over the terms of the individual leases. Revenue recognition under a lease begins when the tenant takes possession of or controls the physical use of the leased space. When the Company acquires a property, the term of existing leases is considered to commence as of the acquisition date for the purposes of this calculation. Accrued rents are included in accrued rent and accounts receivable, net. In accordance with Accounting Standards Codification (“ASC”) 605-10-S99, Revenue Recognition, the Company will defer the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Cost recoveries from tenants are included in tenant reimbursements and other revenue in the period the related costs are incurred. | |
Significant_Accounting_Policie8
Significant Accounting Policies: Allocation of Purchase Price of Acquired Assets (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Allocation of Purchase Price of Acquired Assets | Allocation of Purchase Price of Acquired Assets |
Upon the acquisition of real properties, it is the Company’s policy to allocate the purchase price of properties to acquired tangible assets, consisting of land and buildings, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and leasehold improvements and value of tenant relationships, based in each case on their fair values. The Company utilizes internal valuation methods to determine the fair values of the tangible assets of an acquired property (which includes land and buildings). | |
The fair values of above-market and below-market in-place lease values, including below-market renewal options for which renewal has been determined to be reasonably assured, are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (a) the contractual amounts to be paid pursuant to the in-place leases and (b) an estimate of fair market lease rates for the corresponding in-place leases and below-market renewal options, which is generally obtained from independent appraisals, measured over a period equal to the remaining non-cancelable term of the lease. The above-market and below-market lease and renewal option values are capitalized as intangible lease assets or liabilities and amortized as an adjustment of rental revenue over the remaining expected terms of the respective leases. | |
The fair values of in-place leases include direct costs associated with obtaining a new tenant, opportunity costs associated with lost rentals which are avoided by acquiring an in-place lease, and tenant relationships. Direct costs associated with obtaining a new tenant include commissions, tenant improvements, and other direct costs and are estimated based on independent appraisals and management’s consideration of current market costs to execute a similar lease. These direct costs are included in intangible lease assets and are amortized to expense over the remaining terms of the respective leases. The value of opportunity costs is calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. Customer relationships are valued based on expected renewal of a lease or the likelihood of obtaining a particular tenant for other locations. These intangibles are included in real estate assets in the consolidated balance sheets and are being amortized to expense over the remaining term of the respective leases. | |
The determination of the fair values of the assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, discount rates and other variables. The use of inappropriate estimates would result in an incorrect assessment of the purchase price allocations, which could impact the amount of the Company’s reported net loss. | |
Significant_Accounting_Policie9
Significant Accounting Policies: Depreciation and Amortization (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Depreciation and Amortization | Depreciation and amortization |
Depreciation is computed using the straight-line method over the estimated useful lives of 5 to 39 years for buildings and improvements. Tenant improvements are depreciated using the straight-line method over the lesser of the life of the improvement or the remaining term of the lease. In-place leases are amortized using the straight-line method over the weighted average years calculated in terms of all of the leases in-place when acquired. | |
Recovered_Sheet1
Significant Accounting Policies: Impairment (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Impairment | Impairment |
We review our real estate assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of the assets, including accrued rental income, may not be recoverable through operations. We determine whether an impairment in value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), including the estimated residual value of the property, with the carrying cost of the property. If impairment is indicated, a loss will be recorded for the amount by which the carrying value of the property exceeds its fair value. Management has determined that there has been no impairment in the carrying value of our real estate assets as of December 31, 2014 and 2013. | |
Projections of expected future cash flows require management to estimate future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, discount rates, the number of months it takes to release the property and the number of years the property is held for investment. The use of inappropriate assumptions in the future cash flow analysis would result in an incorrect assessment of the property’s future cash flow and fair value and could result in the overstatement of the carrying value of our real estate and related intangible assets and net income. | |
Recovered_Sheet2
Significant Accounting Policies: Goodwill (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Goodwill | Goodwill |
Generally accepted accounting principles in the United States require the Company to test goodwill for impairment at least annually or more frequently whenever events or circumstances occur indicating goodwill might be impaired. The Company has the option to perform a qualitative assessment to determine if it is more likely than not that the fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value is less than the carrying amount, or if the Company elects to bypass the qualitative assessment, the Company performs a two-step impairment test. In the first step, management compares its net book value of the Company to the carrying amount of goodwill at the balance sheet date. In the event net book value of the Company is less than the carrying amount of goodwill, the Company proceeds to step two and assesses the need to record an impairment charge. For the years ended December 31, 2014 and 2013, no goodwill impairment was recognized in the accompanying consolidated financial statements. | |
Recovered_Sheet3
Significant Accounting Policies: Organization and Offering Costs (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Organization and Offering Costs | Organization and Offering Costs |
The Company has incurred certain expenses in connection with organizing the company. These costs principally relate to professional and filing fees. |
Recovered_Sheet4
Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Income Taxes | Income Taxes |
We have elected to be treated as a REIT under the Internal Revenue Code of 1986, as amended, beginning with our taxable year ended December 31, 2011. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income to stockholders (which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax on income that it distributes as dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially and adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes that it is organized and will operate in such a manner as to qualify for treatment as a REIT. |
Future_Minimum_Rents_Future_Mi
Future Minimum Rents: Future Minimum Rents Policy (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Future Minimum Rents Policy | Future Minimum Rents |
We lease the majority of our properties under noncancelable operating leases which provide for minimum base rentals. A summary of minimum future rentals to be received (exclusive of renewals, tenant reimbursements, and contingent rentals) under noncancelable operating leases in existence |
Loss_Per_Share_Loss_Per_Share_
Loss Per Share: Loss Per Share (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Loss Per Share | Loss Per Share |
Basic earnings (loss) per share is computed using net income (loss) attributable to common stockholders and the weighted average number of common shares outstanding. Diluted weighted average shares outstanding reflect common shares issuable from the assumed conversion of convertible preferred stock into common shares. Only those items that have a dilutive impact on basic earnings (loss) per share are included in the diluted earnings (loss) per share. | |
Real_Estate_Real_Estate_Assets
Real Estate: Real Estate Assets (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Tables/Schedules | ||||
Real Estate Assets | Real estate assets consisted of the following: | |||
December 31, | ||||
2014 | 2013 | |||
Land | $ 26,829,000 | $ 12,816,250 | ||
Buildings and improvements | 60,687,858 | 33,420,171 | ||
In-place lease value intangible | 28,410,738 | 10,756,483 | ||
115,927,596 | 56,992,904 | |||
Less accumulated depreciation and amortization | (12,904,556) | -6,278,801 | ||
Total real estate assets | $ 103,023,040 | $ 50,714,103 |
Real_Estate_Parkway_Property_a
Real Estate: Parkway Property assets acquired and liabilities assumed (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Tables/Schedules | ||
Parkway Property assets acquired and liabilities assumed | The following table summarizes the fair values of the Parkway Property assets acquired and liabilities assumed based upon our purchase price allocation as of the acquisition date: | |
Assets acquired: | ||
Real estate assets | $ 9,490,000 | |
Total assets acquired | 9,490,000 | |
Liabilities assumed: | ||
Accounts payable and accrued expenses | 32,034 | |
Tenants’ security deposits | 49,768 | |
Total liabilities assumed | 81,802 | |
Fair value of net assets acquired | $ 9,408,198 |
Real_Estate_Total_fair_values_
Real Estate: Total fair values of the assets acquired and liabilities assumed (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Tables/Schedules | |||||
Total fair values of the assets acquired and liabilities assumed | |||||
Gulf Plaza | Mitchelldale | Energy Plaza | Timbercreek/Copperfield | ||
Assets acquired: | |||||
Real estate assets | $ 13,950,000 | $ 19,175,000 | $ 17,610,000 | $ 5,316,000 | |
Other assets | 112,316 | 102,268 | 681,960 | - | |
Total assets acquired | 14,062,316 | 19,277,268 | 18,291,960 | 5,316,000 | |
Liabilities assumed: | |||||
Accounts payable and accrued expenses | 292,347 | 219,548 | 443,142 | 71,613 | |
Security deposits | - | 196,850 | 200,638 | 5,128 | |
Note payable | - | - | 10,362,573 | - | |
Total liabilities assumed | 292,347 | 416,398 | 11,006,353 | 76,741 | |
Fair value of net assets acquired | $ 13,769,969 | $ 18,860,870 | $ 7,285,607 | $ 5,239,259 |
Notes_Payable_Annual_maturitie
Notes Payable: Annual maturities of notes payable (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Tables/Schedules | ||
Annual maturities of notes payable | Annual maturities of notes payable as of December 31, 2014 are as follows: | |
Year ending December 31, | Amount Due | |
2015 | $ 1,146,255 | |
2016 | 1,200,059 | |
2017 | 1,259,576 | |
2018 | 1,320,431 | |
2019 | 1,384,236 | |
Thereafter | 53,307,291 | |
Total | $ 59,617,848 |
Loss_Per_Share_Loss_Per_Share_1
Loss Per Share: Loss Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Tables/Schedules | ||||
Schedule of Earnings Per Share, Basic and Diluted | Basic earnings (loss) per share is computed using net income (loss) attributable to common stockholders and the weighted average number of common shares outstanding. Diluted weighted average shares outstanding reflect common shares issuable from the assumed conversion of convertible preferred stock into common shares. Only those items that have a dilutive impact on basic earnings (loss) per share are included in the diluted earnings (loss) per share. | |||
Years ended December 31, | ||||
2014 | 2013 | |||
Numerator: | ||||
Net loss attributable to common stockholders | ($4,414,865) | ($1,984,873) | ||
Denominator: | ||||
Basic and diluted weighted average shares outstanding | 7,035,337 | 4,927,708 | ||
Basic and diluted loss per common share: | ||||
Net loss attributable to common stockholders | ($0.63) | ($0.40) |
Related_Party_Transactions_Inc
Related Party Transactions: Income (loss) From Discontinued Operations With Respect To The Harwin Property (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Tables/Schedules | ||||
Income (loss) From Discontinued Operations With Respect To The Harwin Property | Income (loss) from discontinued operations with respect to the Harwin Property is as follows: | |||
Years ended December 31, | ||||
2014 | 2013 | |||
Total property revenues | $ - | $ 65,115 | ||
Property operating expenses | - | 53,745 | ||
Real estate taxes and insurance | - | 18,772 | ||
Depreciation & amortization | - | - | ||
Total property and other expenses | - | 72,517 | ||
Gain on sale of property | - | 174,043 | ||
Income (loss) from discontinued operations | $ - | $ 166,641 |
Stockholders_Equity_Distributi
Stockholders' Equity: Distribution table (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Tables/Schedules | ||||
Distribution table | The following table reflects the total distributions we have paid in cash and through the distribution reinvestment plan, including the total amount paid and amount paid per common share, in each indicated quarter: | |||
Quarter Paid | Distributions per Common Share | Total Distributions Paid | ||
2014 | ||||
4th Quarter | $ 0.175 | $ 1,306,358 | ||
3rd Quarter | 0.175 | 1,237,568 | ||
2nd Quarter | 0.175 | 1,191,153 | ||
1st Quarter | 0.175 | 1,103,599 | ||
Total | $ 0.700 | $ 4,838,678 | ||
2013 | ||||
4th Quarter | $ 0.175 | $ 1,033,066 | ||
3rd Quarter | 0.175 | 854,120 | ||
2nd Quarter | 0.175 | 760,551 | ||
1st Quarter | 0.175 | 627,754 | ||
Total | $ 0.700 | $ 3,275,491 |
Organization_and_Business_Deta
Organization and Business (Details) (USD $) | Dec. 31, 2014 |
Details | |
Share Price | $10 |
Preferred Stock, Shares Issued | 1,000 |
Common Stock, Shares, Issued | 8,257,781 |
Distribution reinvestment shares | 532,589 |
Gross offering proceeds | $80,437,603 |
Non-employee compensation shares | 36,875 |
Recovered_Sheet5
Significant Accounting Policies: Restricted Cash (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Details | ||
Restricted Cash | $7,100,000 | $0 |
Recovered_Sheet6
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||
Organization and Offering Costs | $463,655 | $543,943 |
1.5% of gross offering proceeds | $535,023 | $289,629 |
Real_Estate_Details
Real Estate (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||
Land | $26,829,000 | $12,816,250 |
Buildings and Improvements, Gross | 60,687,858 | 33,420,171 |
In-place lease value intangible | 28,410,738 | 10,756,483 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -12,904,556 | -6,278,801 |
Real estate investment property at cost, net | 103,023,040 | 50,714,103 |
Acquisition fees paid advisor | 1,401,275 | 156,870 |
Asset management fees paid to Advisor | $548,902 | $369,659 |
Accrued_Rent_and_Accounts_Rece1
Accrued Rent and Accounts Receivable, Net: Accrued rent and accounts receivable, net, table (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Details | ||
Tenant receivables | $361,373 | $312,218 |
Accrued Rent, Current | 1,243,985 | 467,544 |
Allowance for doubtful accounts | -216,938 | -260,885 |
Accrued Rents and Accounts Receivable, net | $1,388,420 | $518,877 |
Real_Estate_Total_fair_values_1
Real Estate: Total fair values of the assets acquired and liabilities assumed (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
GulfplazaMember | |
Total assets acquired | $14,062,316 |
Total liabilities assumed | 292,347 |
Fair Value of Assets Acquired | 13,769,969 |
MitchelldaleMember | |
Total assets acquired | 19,277,268 |
Total liabilities assumed | 416,398 |
Fair Value of Assets Acquired | 18,860,870 |
EnergyPlazaMember | |
Total assets acquired | 18,291,960 |
Total liabilities assumed | 11,006,353 |
Fair Value of Assets Acquired | 7,285,607 |
TimbercreekandCoperfieldMember | |
Total assets acquired | 5,316,000 |
Total liabilities assumed | 76,741 |
Fair Value of Assets Acquired | $5,239,259 |
Deferred_Loan_and_Leasing_Comm1
Deferred Loan and Leasing Commission Costs: Deferred loan and leasing commision costs table (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||
Deferred loan costs | $1,172,624 | $475,688 |
Deferred loan cost accumulated amortization | -106,256 | -304,617 |
Deferred loan cost net | 1,066,368 | 171,071 |
Deferred Leasing Commissions | 1,956,892 | 908,869 |
Deferred leasing commissions accumulated amortization | -221,085 | -84,412 |
Leasing commission net of accumulated amortization | $1,678,847 | $824,457 |
Future_Minimum_Rents_Minimum_F
Future Minimum Rents: Minimum Future Rents Table (Details) (USD $) | 12 Months Ended | 72 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2020 | |
Details | |||||||
Minimum Future Rents | $14,970,571 | $5,037,256 | $6,994,499 | $11,494,928 | $13,722,000 | $15,353,226 | $67,572,480 |
Stockholders_Equity_Distributi1
Stockholders' Equity: Distribution table (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||
Distributions per Common Share | $0.70 | $0.70 |
Total Distributions Paid | $4,838,678 | $3,275,491 |
Incentive_Awards_Plan_Details
Incentive Awards Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||
Incentive Awards | $20,000 | $20,000 |
Deferred_Loan_and_Leasing_Comm2
Deferred Loan and Leasing Commission Costs (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||
Deferred loan costs | $1,172,624 | $475,688 |
Deferred loan cost accumulated amortization | -106,256 | -304,617 |
Deferred loan cost net | 1,066,368 | 171,071 |
Deferred Leasing Commissions | 1,956,892 | 908,869 |
Deferred leasing commissions accumulated amortization | -221,085 | -84,412 |
Leasing commission net of accumulated amortization | $1,678,847 | $824,457 |