Hartman Short Term Income Properties XX (HARXX) 10-Q 16 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	9 Months Ended
	Sep. 30, 2015	Jun. 30, 2014
Document and Entity Information:
Entity Registrant Name	Hartman Short Term Income Properties XX, Inc.
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Trading Symbol	hartman
Amendment Flag	false
Entity Central Index Key	1,446,687
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		12,062,218
Entity Public Float		$ 120,632,180
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	2,015
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Real estateInvestment property at cost	$ 168,928,423	$ 115,927,596
Real estate investment property accumulated depreciation	(22,427,238)	(12,904,556)
Real estate investment property at cost, net	146,501,185	103,023,040
Cash and cash equivalents	4,335,597	4,428,594
Restricted cash	7,100,000	7,100,000
Accrued rent and accounts receivable, net	1,880,418	1,388,420
Deferred lease commissions and loan costs, net	3,473,719	2,802,175
Goodwill	249,686	249,686
Prepaid expenses and other assets	1,700,773	1,444,319
Total assets	165,241,378	120,436,234
LIABILITIES
Note payable	76,003,613	59,617,848
Accounts payable and accrued expenses	6,680,693	4,940,892
Due to related parties	148,621	507,604
Tenants' security deposits	1,220,422	797,842
Total liabilities	84,053,349	65,864,186
Preferred stock	1	1
Common stock	12,062	8,047
Additional paid in capital	112,317,933	74,996,481
Accumulated distributions and net loss	(31,141,967)	(20,432,481)
Total stockholders' equity	81,188,029	54,572,048
Total liabilities and total stockholders' equity	$ 165,241,378	$ 120,436,234

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Rental revenues	$ 6,067,677	$ 2,844,926	$ 15,040,836	$ 7,025,809
Tenant reimbursements and other revenues	854,848	824,223	2,401,215	1,491,640
Total revenues	6,922,525	3,669,149	17,442,051	8,517,449
Expenses
Property operating expenses	2,242,030	947,204	4,945,214	2,100,777
Asset management and acquisition fees	991,294	158,231	1,958,079	1,217,853
Organization and offering costs	296,447	148,163	652,671	365,032
Real estate taxes and insurance	976,293	593,691	2,522,379	1,439,048
Depreciation and amortization	4,011,955	2,033,854	9,522,682	4,630,340
General and administrative	338,299	214,420	959,148	514,525
Interest expense	820,412	598,260	2,338,433	1,093,585
Total expenses	9,676,730	4,693,823	22,898,606	11,361,160
Net loss	$ (2,754,205)	$ (1,024,674)	$ (5,456,555)	$ (2,843,711)
Basic and diluted loss per common share:
Loss attributable to common stockholders	$ (0.24)	$ (0.14)	$ (0.54)	$ (0.41)
Weighted average number of common shares outstanding, basic and diluted	11,459,835	7,124,242	10,050,349	6,868,701

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - 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, 2014	$ 1	$ 8,047	$ 74,996,481	$ (20,432,481)	$ 54,572,048
Beginning balance - preferred Stock (shares) at Dec. 31 2014 at Dec. 31, 2014	1,000				1,000
Beginning balance - common Stock (shares) at Dec. 31 2014 at Dec. 31, 2014		8,047,132			8,047,132
Issuance of common shares, net of redemption (value)	$ 0	$ 4,015	39,043,487	0	$ 39,047,502
Issuance of common shares, net of redemption (shares)		4,015,086			4,015,086
Selling commissions	0	$ 0	(1,722,035)	0	$ (1,722,035)
Dividends and distributions	0	0	0	(5,252,931)	(5,252,931)
Net loss	0	0	0	(5,456,555)	(5,456,555)
Stockholders' equity, ending balance at Sep. 30, 2015	$ 1	$ 12,062	$ 112,317,933	$ (31,141,967)	$ 81,188,029
Ending balance - preferred Stock (in shares) at September 30, 2015 at Sep. 30, 2015	1,000				1,000
Ending balance - common Stock (in shares) at September 30, 2015 at Sep. 30, 2015		12,062,218			12,062,218

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (5,456,555)	$ (2,843,711)
Stock based compensation	65,000	65,000
Depreciation and amortization expense	9,522,682	4,630,340
Deferred loan and leasing commission costs amortization	383,622	338,296
Bad debt provision	170,409	(44,130)
(Increase) decrease accrued rent and accounts receivable	(662,407)	(643,117)
Deferred leasing commmission costs	(757,533)	(859,265)
(Increase) decrease prepaid expenses and other assets	288,613	(129,726)
Increase (decrease) accounts payable and accrued expenses	340,902	1,063,720
Increase (decrease) on due to related parties	(358,983)	(160,869)
Increase (decrease) tenants' security deposits	422,580	245,021
Net cash provided by (used in) operating activities	3,958,330	1,661,559
Cash flows from investing activities:
Acquisition deposit	(470,000)	(500,000)
Change in restricted cash		(7,100,000)
Additions to real estate	(51,845,832)	(34,734,917)
Net cash provide from (used in) investing activities	(52,315,832)	(42,334,917)
Cash flows from financing activities:
Dividend distributions paid in cash	(2,433,675)	(1,814,583)
Payment of selling commissions	(1,722,035)	(516,647)
Payment of deferred loan costs	(297,633)	(976,591)
Repayment of insurance premium finance note	(243,725)	(104,510)
Proceeds from insurance premium finance note	292,523	137,549
Repayments under term loan notes	(854,235)	(155,376)
Proceeds from term loan notes		49,725,000
Proceeds from revolving credit facility	29,425,000	22,644,050
Repayment of revolving credit advances	(12,185,000)	(24,944,050)
Proceeds from issuance of common stock	36,464,390	9,927,572
Redemption of common shares	(181,105)	(1,329,728)
Net cash provided by (used in) financing activities	48,264,505	52,592,686
Net change in cash	(92,997)	11,919,328
Cash and cash equivalents, beginning of period	4,428,594	143,038
Cash and cash equivalents, end of period	$ 4,335,597	$ 12,062,366

Organization and Business

Organization and Business	9 Months Ended
	Sep. 30, 2015
Notes
Organization and Business	Note 1 — 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 ended 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, the Company’s Chief Executive Officer and Chairman of the Board of Directors, 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. Substantially all of our business is conducted through Hartman XX Limited Partnership, a Texas limited partnership, formed on April 11, 2014 (the “Operating Partnership”). We are the sole member of Hartman XX REIT GP LLC, a Texas limited liability company, formed 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 September 30, 2015, we had issued 12,318,394 shares of our common stock in our initial and follow-on offerings, including 782,738 shares of our common stock pursuant to our distribution reinvestment plan, resulting in gross offering proceeds of $117,507,976. Total shares issued and outstanding as of September 30, 2015 include 38,875 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 (the “Dealer Manager”) serves as the dealer manager of the Company’s public 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 parties will receive fees during the offering, acquisition, operational and liquidation stages. As of September 30, 2015, we owned 14 commercial properties comprising approximately 2,199,562 square feet plus 3 pad sites. We own 7 properties located in Richardson, Arlington, and Dallas, Texas, 6 properties located in Houston, Texas and 1 property located in San Antonio, Texas. As of September 30, 2014, we owned 4 commercial properties located in Richardson, Arlington, and Dallas, Texas and 2 commercial properties located in Houston, Texas, for a total of 6 commercial properties, comprising approximately 1,103,647 square feet plus 3 pad sites.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Notes
Summary of Significant Accounting Policies	Note 2 — Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements included in this report are unaudited; however, amounts presented in the consolidated balance sheet as of December 31, 2014 are derived from our audited consolidated financial statements as of that date. The unaudited consolidated financial statements as of September 30, 2015 have been prepared by us in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-Q and Regulation S-X, on a basis consistent with the annual audited consolidated financial statements. The consolidated financial statements presented herein reflect all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the financial position of the Company as of September 30, 2015, and the results of consolidated operations for the three and nine months ended September 30, 2015 and 2014, the consolidated statement of stockholders’ equity for the nine months ended September 30, 2015 and the consolidated statements of cash flows for the nine months ended September 30, 2015 and 2014. The results of the nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. The consolidated financial statements herein are condensed and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. These unaudited 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 in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and 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 period amounts in the accompanying consolidated financial statements in order to be consistent with the current period presentation. These reclassifications had no effect on net loss, total assets, total liabilities or stockholders’ equity. 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 September 30, 2015 and December 31, 2014 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 September 30, 2015 and December 31, 2014, the Company had a restricted cash balance of $7,100,000, respectively, which represents 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) upon 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 an escrow account 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 from (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 notes 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 reimbursement and other revenues 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 income 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 on 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 September 30, 2015. 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. Fair Value Measurement Fair value measures are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market data, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). The Company’s estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. The Company classifies assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. 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 Commission Costs Loan costs are amortized using the straight-line method over the terms of the loans, which approximates the interest method. Leasing commissions are amortized using the straight-line method over the term of the related lease agreements. Goodwill GAAP requires 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. No goodwill impairment has been 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 three months ended September 30, 2015 and 2014, such costs totaled $296,447 and $148,163, respectively. For the nine months ended September 30, 2015 and 2014, such costs totaled $652,671 and $365,032, respectively. Organization and offering costs will be reimbursed by the Advisor to the extent that organization and offering costs ultimately exceed 1.5% of gross offering proceeds. As of September 30, 2015 and December 31, 2014, respectively, the amount of offering and organizational expenses incurred in excess of 1.5% of gross offering proceeds was cumulatively $642,320 and $535,023 for the Company’s initial and follow-on offerings. No demand has been made of the Advisor for reimbursement as of September 30, 2015 and no receivable has been recorded with respect to the excess costs as of that date. The Company expects the excess cost to diminish as additional offering proceeds are received. Selling commissions in connection with the offering are recorded and charged to additional paid-in capital. Stock-Based Compensation The Company follows ASC 718, Compensation-Stock Compensation (“ASC 718”) 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. 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 $13,070 and $9,215 for the three months ended September 30, 2015 and 2014, respectively. Advertising costs totaled $42,689 and $23,320 for the nine months ended September 30, 2015 and 2014, 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 three months ended September 30, 2015 and 2014, the Company incurred a net loss of $2,754,205 and $1,024,674, respectively. For the nine months ended September 30, 2015 and 2014, the Company incurred a net loss of $5,456,555 and $2,843,711, 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 accompanying 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 September 30, 2015 and 2014, 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 three and nine months ended September 30, 2015 and 2014 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 two U.S. financial institutions. 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. The geographic concentration of the Company’s real estate assets makes it susceptible to adverse economic developments in the State of Texas. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, relocations of businesses, increased competition or any other changes, could adversely affect the Company’s operating results and its ability to make distributions to stockholders. The sole tenant of the Gulf Plaza property represents 10.2% and 12.4% of rental revenues for the three and nine months ended September 30, 2015 and 2014, respectively.

Real Estate

Real Estate	9 Months Ended
	Sep. 30, 2015
Notes
Real Estate	Note 3 — Real Estate Real estate assets consisted of the following: September 30, 2015 December 31, 2014 Land $ 43,103,000 $ 26,829,000 Buildings and improvements 82,193,613 60,687,858 In-place lease value intangible 43,631,810 28,410,738 168,928,423 115,927,596 Less accumulated depreciation and amortization (22,427,238) (12,904,556) Total real estate assets $ 146,501,185 $ 103,023,040 Depreciation expense for the three months ended September 30, 2015 and 2014 was $1,181,926 and $728,453, respectively. Depreciation expense for the nine months ended September 30, 2015 and 2014 was $2,913,997 and $1,593,376, respectively. Amortization expense of in-place lease value intangible was $2,913,997 and $1,305,401 for the three months ended September 30, 2015 and 2014, respectively. Amortization expense of in-place lease value intangible was $6,608,685 and $3,036,964 for the nine months ended September 30, 2015 and 2014, respectively. Acquisition fees paid to Advisor were $723,650 and $0 for the three months ended September 30, 2015 and 2014, respectively. Acquisition fees paid to Advisor were $1,262,400 and $828,125 for the nine months ended September 30, 2015 and 2014, respectively. Asset management fees paid to Advisor were $267,644 and $158,231 for the three months ended September 30, 2015 and 2014, respectively. Asset management fees paid to Advisor were $695,679 and $389,728 for the nine months ended September 30, 2015 and 2014, respectively. Asset management and acquisition fees are captioned as such in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2015 and 2014, respectively. During the nine months ended September 30, 2015, we acquired five real estate assets through wholly owned limited liability companies of the Operating Partnership. The following table summarizes the real estate assets acquired: Property Name/Location Property Type Rentable SF Percent Leased Date Acquired Acquisition Cost Commerce Plaza Hillcrest, Dallas, TX Office 203,688 74% 5/1/2015 $ 11,400,000 400 North Belt, Houston, TX Office 230,872 63% 5/8/2015 10,150,000 Ashford Crossing, Houston, TX Office 158,451 87% 7/31/2015 10,600,000 Corporate Park Place, Dallas, TX Office 113,429 79% 8/24/2015 9,500,000 Skymark Tower, Dallas, TX Office 115,700 78% 9/2/2015 8,846,000 822,140 $ 50,496,000 The following table summarizes the fair value of the assets acquired and liabilities assumed based upon our initial purchase price allocations as of the respective acquisition dates: Hillcrest North Belt Ashford CPP Skymark Assets acquired: Real estate assets $ 11,400,000 $ 10,150,000 $ 10,600,000 $ 9,500,000 $ 8,846,000 Other assets - - - - - Total assets acquired 11,400,000 10,150,000 10,600,000 9,500,000 8,846,000 Liabilities assumed: Accounts payable and accrued expenses 74,049 640,057 722,809 137,942 121,657 Security deposits 129,284 54,808 90,307 70,705 62,850 Total liabilities assumed 203,333 694,865 813,116 208,647 184,507 Fair value of net assets acquired $ 11,196,667 $ 9,455,135 $ 9,786,884 $ 9,291,353 $ 8,661,493 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: September 30, 2015 December 31, 2014 In-place lease value intangible $ 43,631,810 $ 28,410,738 Less accumulated amortization (15,204,284) (8,595,599) Acquired lease intangible assets, net $ 28,427,526 $ 19,815,139

Accrued Rent and Accounts Recei

Accrued Rent and Accounts Receivable, Net	9 Months Ended
	Sep. 30, 2015
Notes
Accrued Rent and Accounts Receivable, Net	Note 4 — Accrued Rent and Accounts Receivable, net Accrued rent and accounts receivable, net, consisted of the following: September 30, 2015 December 31, 2014 Tenant receivables $ 414,866 $ 361,373 Accrued rent 1,852,899 1,243,985 Allowance for uncollectible accounts (387,347) (216,938) Accrued rents and accounts receivable, net $ 1,880,418 $ 1,388,420 As of September 30, 2015 and December 31, 2014, we had an allowance for uncollectible accounts of $387,347 and $216,938, respectively. For the three months ended September 30, 2015 and 2014, we recorded bad debt expense in the amount of $159,237 and $9,592, respectively, related to tenant receivables that we have specifically identified as potentially uncollectible based on our assessment of each tenant’s credit-worthiness. For the nine months ended September 30, 2015 and 2014, we recorded bad debt expense (recovery) in the amount of $170,409 and $(44,130), respectively. Bad debt expense and any related recoveries are included in property operating expenses in the accompanying consolidated statements of operations.

Deferred Loan and Leasing Commi

Deferred Loan and Leasing Commission Costs, Net	9 Months Ended
	Sep. 30, 2015
Notes
Deferred Loan and Leasing Commission Costs, Net	Note 5 — Deferred Loan and Leasing Commission Costs, net Costs which have been deferred consist of the following: September 30, 2015 December 31, 2014 Deferred loan and leasing commission costs $ 4,184,682 $ 3,129,516 Less: accumulated amortization (710,963) (327,341) Deferred loan and leasing commission costs, net $ 3,473,719 $ 2,802,175

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2015
Notes
Notes Payable	Note 6 — Notes Payable The Company is a party to a $30.0 million revolving credit agreement (the “TCB Credit Facility”) with Texas Capital Bank. The borrowing base of the TCB Credit Facility may be adjusted from time to time subject to the lender’s underwriting with respect to real property collateral. The TCB 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 TCB Credit Facility. On July 2, 2014, the Company entered into a further modification agreement of the TCB Credit Facility to add the Gulf Plaza Property as collateral and the borrowing base of the TCB Credit Facility, as further modified, was increased to $7.0 million. On January 23, 2015, the TCB Credit Facility was modified to add the Timbercreek and Copperfield properties as collateral and the borrowing base of the TCB Credit Facility was increased to $9.9 million. On November 10, 2015, the TCB Credit Facility was modified to include a property commonly known as One Technology Center to the borrowing base. As further modified, the borrowing base is increased to $20.925 million. The TCB Credit Facility note, as currently modified, bears interest at greater of 4.25 % per annum or the bank’s prime rate plus 1% per annum. The interest rate was 4.5% per annum as of September 30, 2015. The loan matures on May 9, 2017. The outstanding balance under the TCB Credit Facility was $3,400,000 and $0 as of September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015 the amount available to be borrowed is $6.5 million. As of September 30, 2015, we were in compliance with all loan covenants. The Company is a party to a $15.525 million revolving credit agreement (the “EWB Credit Facility”) with East West Bank. The borrowing base of the EWB Credit Facility may be adjusted from time to time subject to the lender’s underwriting with respect to real property collateral. The EWB Credit Facility is secured by the Commerce Plaza Hillcrest, Corporate Park Plaza and 400 North Belt properties. The EWB Credit Facility note bears interest at greater of 3.75% per annum or the bank’s prime rate plus 0.50%. The interest rate was 3.75% per annum as of September 30, 2015. The loan matures on August 24, 2017. The outstanding balance under the EWB Credit Facility was $13,840,000 as of September 30, 2015. As of September 30, 2015 the amount available to be borrowed is $1,685,000. As of September 30, 2015, we were in compliance with all loan covenants. On October 13, 2015 the Company entered into a second revolving credit agreement with East West Bank (the “EWB II Credit Facility”). The borrowing base of the EWB II Credit Facility is $9.9 million and may be adjusted from time to time subject to the lender’s underwriting with respect to the real property collateral. The EWB Credit Facility is secured by the Ashford Crossing and Skymark Tower properties. The EWB II Credit Facility note bears interest at greater of 3.75% per annum or the bank’s prime rate plus 0.50%. The loan matures on August 24, 2017. The following is a summary of the mortgage notes payable as of September 30, 2015: Collateral Property Name Payment Type Maturity Rate Principal Balance Richardson Heights Property (1)(2) Principal and interest July 1, 2041 4.61% $ 19,714,595 Cooper Street Property (1)(3) Principal and interest July 1, 2041 4.61% 8,198,149 Bent Tree Green Property (1)(2) Principal and interest July 1, 2041 4.61% 8,198,149 Mitchelldale Property (1)(3) Principal and interest July 1, 2041 4.61% 12,419,219 Energy Plaza I & II Principal and interest June 10, 2021 5.30% 10,233,501 $ 58,763,613 (1) 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. (2) In connection with the loans secured by the Richardson Heights Property and the Bent Tree Green Property, we 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 us upon satisfactory showing of increased annualized rental income from new lease agreements as set forth in the reserve agreement. Under the terms of the reserve agreement, we 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. (3) In connection with the loans secured by the Cooper Street Property and the Mitchelldale Property, we 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. The lender has extended the time for completing certain capital repairs and matters related to the post-closing agreement until March 27, 2015. As of September 30, 2015, the lender has been advised of post-closing matters covered by the extension agreement which remain incomplete. 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. 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. Each of the loans secured by the Richardson Heights Property, the Cooper Street Property, the Bent Tree Green Property and the Mitchelldale Property require monthly payments of principal and interest due and payable on the first day of each month. Monthly payments are based on a 27 year loan amortization. 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 September 30, 2015, 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. The loan secured by the Energy Plaza I & II Property requires monthly payments of principal and interest due and payable on the tenth day of each month. Monthly payments are 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 September 30, 2015, 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.

Loss Per Share

Loss Per Share	9 Months Ended
	Sep. 30, 2015
Notes
Loss Per Share	Note 7 — Loss Per Share Basic loss per share is computed using net loss attributable to common stockholders and the weighted average number of common shares outstanding. Diluted earnings per share 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 per share are included in the diluted earnings per share. Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Numerator: Net loss attributable to common shares $ (2,754,205) $ (1,024,674) $ (5,456,555) $ (2,843,711) Denominator: Basic and diluted weighted average common shares outstanding 11,435,628 7,124,242 10,040,602 6,868,701 Basic and diluted loss per common share attributable to common stockholders $(0.24) $(0.14) $(0.54) $(0.41)

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Notes
Income Taxes	Note 8 — 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. Taxable income (loss) differs from net income (loss) for financial reporting purposes principally due to differences in the timing of recognition of interest, real estate taxes, depreciation and rental revenue.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Notes
Related Party Transactions	Note 9 — 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 Advisor is a variable interest entity which consolidates for financial reporting purposes with Hartman Income REIT, Inc. and subsidiaries, of which approximately 20% is beneficially owned by Allen R. Hartman, our Chief Executive Officer and Chairman of the Board of Directors. For the three months ended September 30, 2015 and 2014, we paid the Advisor $267,644 and $158,231, respectively, for asset management fees. For the nine months ended September 30, 2015 and 2014 we paid the Advisor $695,679 and $389,728, respectively, for asset management fees. Acquisition fees paid to Advisor were $723,650 and $0 for the three months ended September 30, 2015 and 2014, respectively, and $1,262,400 and $828,125 for the nine months ended September 30, 2015 and 2014, respectively. Property operating expenses include property management fees paid to our Property Manager of $254,152 and $158,429 for the three months ended September 30, 2015 and 2014, respectively. Property management fees for the nine months ended $663,047 September 30, 2015 and 2014 September 30, 2015 and 2014 As of September 30, 2015 and December 31, 2014, respectively, the Company had a net balance due to the Property Manager and the Advisor of $191,509 and $538,970. The Company had a net balance due from an affiliate, Hartman Short Term Income Properties XIX, Inc. (“Hartman XIX”), of $42,888 and $31,366 as of September 30, 2015 and December 31, 2014, respectively. The balance due from Hartman XIX represents amounts due pursuant to the property and company management agreements among Hartman Income REIT Management and Hartman XIX and its subsidiaries.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2015
Notes
Stockholders' Equity	Note 10 – 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, $0.001 par value per share, and 200,000,000 preferred shares, $0.001 par value per share. As of September 30, 2015, the Company has accepted investors’ subscriptions for and issued 12,033,295 shares of the Company’s common stock in its initial and follow-on public offerings, resulting in gross proceeds to the Company of $117,507,976. 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 September 30, 2015 and December 31, 2014, respectively, 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 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 stockholders 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. The Company granted 1,500 shares of restricted common stock to independent directors as compensation for services for the three months ended September 30, 2015 and 2014, respectively and 4,500 shares of restricted common stock to independent directors as compensation for services for the nine months ended September 30, 2015 and 2014, respectively. Based upon the estimated fair value per share, we recognized $15,000 as stock-based compensation expense for the three months ended September 30, 2015 and 2014, respectively and $45,000 as stock-based compensation expense for the nine months ended September 30, 2015 and 2014, respectively. Stock-based compensation expense is included in general and administrative expenses in the accompanying consolidated statements of operations. Distributions The following table reflects the total distributions we have paid, including the total amount paid and amount paid per common share, in each indicated quarter: Quarter Paid Distributions per Common Share Total Distributions Paid 2015 3 rd $ 0.175 $ 1,946,868 2 nd 0.175 1,679,084 1 st 0.175 1,416,861 Total 2015 0.525 $ 5,042,813 2014 4 th $ 0.175 $ 1,306,367 3 rd 0.175 1,237,568 2 nd 0.175 1,191,153 1 st 0.175 1,103,599 Total 2014 $ 0.700 $ 4,838,687

Incentive Awards Plan

Incentive Awards Plan	9 Months Ended
	Sep. 30, 2015
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 may we grant awards with respect to 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 an award of 1,000 shares of restricted common stock issued to each of two executives of the Property Manager in April 2015. We recognized $0 and $0; $20,000 and $20,000 as stock-based compensation expense for three and nine months ended September 30, 2015 and 2014, respectively. Incentive plan compensation expense is included in general and administrative expenses in the accompanying consolidated statements of operations.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Notes
Commitments and Contingencies	Note 12 – Commitments and Contingencies Economic Dependency The Company is dependent on 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	9 Months Ended
	Sep. 30, 2015
Notes
Subsequent Events	Note 13 – Subsequent Events On November 10, 2015, Hartman Short Term Income Properties XX, Inc. (the “Company”), through Hartman One Technology Center LLC (“One Tech LLC”), an indirect, wholly-owned subsidiary of the Company, acquired a fee simple interest in a 14 story office building commonly known as One Technology Center, containing approximately 198,348 square feet of office space located in San Antonio, Texas. One Tech LLC acquired One Technology Center from KW Funds One Technology Center, LLC, an unrelated third party seller, for a purchase price, of $19,575,000 exclusive of closing costs. One Tech LLC financed the payment of the purchase price for One Technology Center with proceeds from the Company’s ongoing public offering and loan advance proceeds from the Company’s revolving credit facility. In accordance with Financial Accounting Standards Board ASC Topic 855, Subsequent Events, the Company has evaluated subsequent events through November 13, 2015, which is the date these consolidated financial statements were issued. All subsequent events requiring recognition as of November 13, 2015, have been incorporated into these notes to consolidated financial statements.

Summary of Significant Accoun19

Summary of Significant Accounting Policies: Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements included in this report are unaudited; however, amounts presented in the consolidated balance sheet as of December 31, 2014 are derived from our audited consolidated financial statements as of that date. The unaudited consolidated financial statements as of September 30, 2015 have been prepared by us in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-Q and Regulation S-X, on a basis consistent with the annual audited consolidated financial statements. The consolidated financial statements presented herein reflect all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the financial position of the Company as of September 30, 2015, and the results of consolidated operations for the three and nine months ended September 30, 2015 and 2014, the consolidated statement of stockholders’ equity for the nine months ended September 30, 2015 and the consolidated statements of cash flows for the nine months ended September 30, 2015 and 2014. The results of the nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. The consolidated financial statements herein are condensed and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. These unaudited consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions have been eliminated.

Summary of Significant Accoun20

Summary of Significant Accounting Policies: Use of Estimates in The Preparation of Financial Statements (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Use of Estimates in The Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and 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.

Summary of Significant Accoun21

Summary of Significant Accounting Policies: Reclassifications (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Reclassifications	Reclassifications We have reclassified certain prior period amounts in the accompanying consolidated financial statements in order to be consistent with the current period presentation. These reclassifications had no effect on net loss, total assets, total liabilities or stockholders’ equity.

Summary of Significant Accoun22

Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	9 Months Ended
	Sep. 30, 2015
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 September 30, 2015 and December 31, 2014 consisted of demand deposits at commercial banks.

Summary of Significant Accoun23

Summary of Significant Accounting Policies: Restricted Cash (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Restricted Cash	Restricted Cash Restricted cash represents cash for which the use of funds is restricted by certain loan documents. As of September 30, 2015 and December 31, 2014, the Company had a restricted cash balance of $7,100,000, respectively, which represents 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) upon 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 an escrow account with a loan servicer.

Summary of Significant Accoun24

Summary of Significant Accounting Policies: Financial Instruments (Policies)	9 Months Ended
	Sep. 30, 2015
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 from (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 notes payable approximates fair value.

Summary of Significant Accoun25

Summary of Significant Accounting Policies: Revenue Recognition (Policies)	9 Months Ended
	Sep. 30, 2015
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 reimbursement and other revenues in the period the related costs are incurred.

Summary of Significant Accoun26

Summary of Significant Accounting Policies: Allocation of Purchase Price of Acquired Assets (Policies)	9 Months Ended
	Sep. 30, 2015
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 income 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.

Summary of Significant Accoun27

Summary of Significant Accounting Policies: Depreciation and Amortization (Policies)	9 Months Ended
	Sep. 30, 2015
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 on terms of all of the leases in-place when acquired.

Summary of Significant Accoun28

Summary of Significant Accounting Policies: Impairment (Policies)	9 Months Ended
	Sep. 30, 2015
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 September 30, 2015. 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. Fair Value Measurement Fair value measures are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market data, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). The Company’s estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. The Company classifies assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement.

Summary of Significant Accoun29

Summary of Significant Accounting Policies: Accrued Rent and Accounts Receivable (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Accrued Rent and Accounts Receivable	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.

Summary of Significant Accoun30

Summary of Significant Accounting Policies: Deferred Loan and Leasing Commission Costs (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Deferred Loan and Leasing Commission Costs	Deferred Loan and Leasing Commission Costs Loan costs are amortized using the straight-line method over the terms of the loans, which approximates the interest method. Leasing commissions are amortized using the straight-line method over the term of the related lease agreements.

Summary of Significant Accoun31

Summary of Significant Accounting Policies: Goodwill (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Goodwill	Goodwill GAAP requires 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. No goodwill impairment has been recognized in the accompanying consolidated financial statements.

Summary of Significant Accoun32

Summary of Significant Accounting Policies: Organization and Offering Costs (Policies)	9 Months Ended
	Sep. 30, 2015
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. For the three months ended September 30, 2015 and 2014, such costs totaled $296,447 and $148,163, respectively. For the nine months ended September 30, 2015 and 2014, such costs totaled $652,671 and $365,032, respectively. Organization and offering costs will be reimbursed by the Advisor to the extent that organization and offering costs ultimately exceed 1.5% of gross offering proceeds. As of September 30, 2015 and December 31, 2014, respectively, the amount of offering and organizational expenses incurred in excess of 1.5% of gross offering proceeds was cumulatively $642,320 and $535,023 for the Company’s initial and follow-on offerings. No demand has been made of the Advisor for reimbursement as of September 30, 2015 and no receivable has been recorded with respect to the excess costs as of that date. The Company expects the excess cost to diminish as additional offering proceeds are received. Selling commissions in connection with the offering are recorded and charged to additional paid-in capital.

Summary of Significant Accoun33

Summary of Significant Accounting Policies: Stock-based Compensation (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Stock-based Compensation	Stock-Based Compensation The Company follows ASC 718, Compensation-Stock Compensation (“ASC 718”) 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.

Summary of Significant Accoun34

Summary of Significant Accounting Policies: Advertising (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Advertising	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 $13,070 and $9,215 for the three months ended September 30, 2015 and 2014, respectively. Advertising costs totaled $42,689 and $23,320 for the nine months ended September 30, 2015 and 2014, respectively.

Summary of Significant Accoun35

Summary of Significant Accounting Policies: Income Taxes (Policies)	9 Months Ended
	Sep. 30, 2015
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. For the three months ended September 30, 2015 and 2014, the Company incurred a net loss of $2,754,205 and $1,024,674, respectively. For the nine months ended September 30, 2015 and 2014, the Company incurred a net loss of $5,456,555 and $2,843,711, 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 accompanying 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.

Summary of Significant Accoun36

Summary of Significant Accounting Policies: Loss Per Share (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Loss Per Share	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 September 30, 2015 and 2014, 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 three and nine months ended September 30, 2015 and 2014 because no shares are issuable and inclusion of such potentially dilutive securities would have been anti-dilutive.

Summary of Significant Accoun37

Summary of Significant Accounting Policies: Concentration of Risk (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Concentration of Risk	Concentration of Risk We maintain cash accounts in two U.S. financial institutions. 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. The geographic concentration of the Company’s real estate assets makes it susceptible to adverse economic developments in the State of Texas. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, relocations of businesses, increased competition or any other changes, could adversely affect the Company’s operating results and its ability to make distributions to stockholders. The sole tenant of the Gulf Plaza property represents 10.2% and 12.4% of rental revenues for the three and nine months ended September 30, 2015 and 2014, respectively.

Real Estate_ Schedule of Real E

Real Estate: Schedule of Real Estate Properties (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Real Estate Properties	September 30, 2015 December 31, 2014 Land $ 43,103,000 $ 26,829,000 Buildings and improvements 82,193,613 60,687,858 In-place lease value intangible 43,631,810 28,410,738 168,928,423 115,927,596 Less accumulated depreciation and amortization (22,427,238) (12,904,556) Total real estate assets $ 146,501,185 $ 103,023,040

Real Estate_ Summarizes the rea

Real Estate: Summarizes the real estate assets (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Summarizes the real estate assets	Property Name/Location Property Type Rentable SF Percent Leased Date Acquired Acquisition Cost Commerce Plaza Hillcrest, Dallas, TX Office 203,688 74% 5/1/2015 $ 11,400,000 400 North Belt, Houston, TX Office 230,872 63% 5/8/2015 10,150,000 Ashford Crossing, Houston, TX Office 158,451 87% 7/31/2015 10,600,000 Corporate Park Place, Dallas, TX Office 113,429 79% 8/24/2015 9,500,000 Skymark Tower, Dallas, TX Office 115,700 78% 9/2/2015 8,846,000 822,140 $ 50,496,000

Real Estate_ Fair value of the

Real Estate: Fair value of the assets acquired and liabilities assumed (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Fair value of the assets acquired and liabilities assumed	Hillcrest North Belt Ashford CPP Skymark Assets acquired: Real estate assets $ 11,400,000 $ 10,150,000 $ 10,600,000 $ 9,500,000 $ 8,846,000 Other assets - - - - - Total assets acquired 11,400,000 10,150,000 10,600,000 9,500,000 8,846,000 Liabilities assumed: Accounts payable and accrued expenses 74,049 640,057 722,809 137,942 121,657 Security deposits 129,284 54,808 90,307 70,705 62,850 Total liabilities assumed 203,333 694,865 813,116 208,647 184,507 Fair value of net assets acquired $ 11,196,667 $ 9,455,135 $ 9,786,884 $ 9,291,353 $ 8,661,493

Real Estate_ Accumulated amorti

Real Estate: Accumulated amortization (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Accumulated amortization	September 30, 2015 December 31, 2014 In-place lease value intangible $ 43,631,810 $ 28,410,738 Less accumulated amortization (15,204,284) (8,595,599) Acquired lease intangible assets, net $ 28,427,526 $ 19,815,139

Accrued Rent and Accounts Rec42

Accrued Rent and Accounts Receivable, Net: Accrued Rent and Accounts Receivable, net Table (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Accrued Rent and Accounts Receivable, net Table	September 30, 2015 December 31, 2014 Tenant receivables $ 414,866 $ 361,373 Accrued rent 1,852,899 1,243,985 Allowance for uncollectible accounts (387,347) (216,938) Accrued rents and accounts receivable, net $ 1,880,418 $ 1,388,420

Deferred Loan and Leasing Com43

Deferred Loan and Leasing Commission Costs, Net: Deferred loan and leasing commission Table (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Deferred loan and leasing commission Table	September 30, 2015 December 31, 2014 Deferred loan and leasing commission costs $ 4,184,682 $ 3,129,516 Less: accumulated amortization (710,963) (327,341) Deferred loan and leasing commission costs, net $ 3,473,719 $ 2,802,175

Loss Per Share_ Per Share sched

Loss Per Share: Per Share schedule (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Per Share schedule	Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Numerator: Net loss attributable to common shares $ (2,754,205) $ (1,024,674) $ (5,456,555) $ (2,843,711) Denominator: Basic and diluted weighted average common shares outstanding 11,435,628 7,124,242 10,040,602 6,868,701 Basic and diluted loss per common share attributable to common stockholders $(0.24) $(0.14) $(0.54) $(0.41)

Stockholders' Equity_ The Follo

Stockholders' Equity: The Following Table Reflects The Total Distributions We Have Paid, Including The Total Amount Paid and Amount Paid Per Common Share, in Each Indicated Quarter (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
The Following Table Reflects The Total Distributions We Have Paid, Including The Total Amount Paid and Amount Paid Per Common Share, in Each Indicated Quarter:	The following table reflects the total distributions we have paid, including the total amount paid and amount paid per common share, in each indicated quarter: Quarter Paid Distributions per Common Share Total Distributions Paid 2015 3 rd $ 0.175 $ 1,946,868 2 nd 0.175 1,679,084 1 st 0.175 1,416,861 Total 2015 0.525 $ 5,042,813 2014 4 th $ 0.175 $ 1,306,367 3 rd 0.175 1,237,568 2 nd 0.175 1,191,153 1 st 0.175 1,103,599 Total 2014 $ 0.700 $ 4,838,687

Organization and Business (Deta

Organization and Business (Details)	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares	Sep. 30, 2014USD ($)
Details
Operations Commenced Date	Feb. 5, 2009
Share Price | $ / shares	$ 10
Preferred Stock, Shares Issued	1,000
Common Stock, Shares, Issued	12,318,394
Stock Issued During Period, Shares, Dividend Reinvestment Plan	782,738
Proceeds from issuance of common stock | $	$ 36,464,390	$ 9,927,572
Stock Issued During Period, Shares, Share-based Compensation, Gross	38,875
Number of Real Estate Properties	14

Summary of Significant Accoun47

Summary of Significant Accounting Policies: Restricted Cash (Details)	Sep. 30, 2015USD ($)
Details
Restricted Cash and Cash Equivalents	$ 7,100,000
Restricted cash from Loan prodeeds	$ 6,500,000

Summary of Significant Accoun48

Summary of Significant Accounting Policies: Organization and Offering Costs (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Details
Excess offering and organizational expenses	$ 642,320	$ 535,023

Summary of Significant Accoun49

Summary of Significant Accounting Policies: Concentration of Risk (Details)	Sep. 30, 2015	Sep. 30, 2014
Details
Sole tenant of the Gulf Plaza occupancy	10.20%	12.40%

Real Estate_ Schedule of Real50

Real Estate: Schedule of Real Estate Properties (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Details
Land	$ 43,103,000	$ 26,829,000
Buildings and Improvements, Gross	82,193,613	60,687,858
In-place lease value intangible	$ 43,631,810	$ 28,410,738

Real Estate (Details)

Real Estate (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Details
Amortization expense of in-place lease value	$ 2,913,997	$ 1,305,401	$ 6,608,685	$ 3,036,964
Acquision fees paid to Advisor	723,650	0	1,262,400	828,125
Asset Management Costs	$ 267,644	$ 158,231	$ 695,679	$ 389,728

Real Estate_ Summarizes the r52

Real Estate: Summarizes the real estate assets (Details)	9 Months Ended
	Sep. 30, 2015USD ($)
Real Estate Investment
Payments to Acquire Property, Plant, and Equipment	$ 50,496,000

Real Estate_ Accumulated amor53

Real Estate: Accumulated amortization (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Details
Accumulated amortization	$ (15,204,284)	$ (8,595,599)

Accrued Rent and Accounts Rec54

Accrued Rent and Accounts Receivable, Net: Accrued Rent and Accounts Receivable, net Table (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Details
Tenant receivables	$ 414,866	$ 361,373
Accrued Rent, Current	1,852,899	1,243,985
Allowance for uncollectible accounts	(387,347)	(216,938)
Accrued rents and accounts receivable, net	$ 1,880,418	$ 1,388,420

Deferred Loan and Leasing Com55

Deferred Loan and Leasing Commission Costs, Net: Deferred loan and leasing commission Table (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Details
Deferred loan and leasing commission costs	$ 4,184,682	$ 3,129,516
Accumulated amortization on loan fee and leasing commission	$ (710,963)	$ (327,341)

Notes Payable (Details)

Notes Payable (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Details
Outstanding balance under the TCB Credit Facility	$ 3,400,000	$ 0
Amount available to be borrowed	6,500,000
EWB Credit line	$ 15,525,000
EWB Credit interest rate	3.75%
Outstanding balance under the EWB	$ 13,840,000

Stockholders' Equity_ The Fol57

Stockholders' Equity: The Following Table Reflects The Total Distributions We Have Paid, Including The Total Amount Paid and Amount Paid Per Common Share, in Each Indicated Quarter (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Details
Distributions per Common Share	$ 0.525	$ 0.700
Dividends and distributions	$ (5,252,931)	$ 4,838,687

Incentive Awards Plan (Details)

Incentive Awards Plan (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Details
Incentive stock award	$ 0	$ 0	$ 20,000	$ 20,000