Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information: | ||
Entity Registrant Name | Global Medical REIT Inc. | |
Entity Trading Symbol | GMRE | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1533615 | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 250,000 | |
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 | 2015 | |
Document Fiscal Period Focus | Q1 |
Balance_Sheets
Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Investment in real estate: | ||
Building and improvements | $24,373,762 | $24,373,762 |
Less: accumulated depreciation | -481,916 | -329,580 |
Investment in real estate, net | 23,891,846 | 24,044,182 |
Cash and cash equivalents | 369,105 | 301,402 |
Accounts receivable | 403 | 2,793 |
Deferred financing costs, net | 261,894 | 291,691 |
Total assets | 24,523,248 | 24,640,068 |
Liabilities: | ||
Accounts payable and accrued expenses | 113,361 | 338,764 |
Due to related parties, net | 420,768 | 330,768 |
Convertible debenture, due to majority shareholder | 5,446,102 | 5,446,102 |
Note payable to majority shareholder | 388,195 | 38,195 |
Note payable | 16,681,030 | 16,760,000 |
Total liabilities | 23,049,456 | 22,913,829 |
Shareholders' equity : | ||
Preferred stock, $0.001 par value, 100,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock $0.001 par value, 500,000,000 shares authorized at March 31, 2015 and December 31, 2014, respectively; 250,000 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 250 | 250 |
Additional paid-in capital | 3,011,790 | 3,011,790 |
Accumulated deficit | -1,538,248 | -1,285,801 |
Total shareholders' equity | 1,473,792 | 1,726,239 |
Total liabilities and shareholders' equity | $24,523,248 | $24,640,068 |
Balance_Sheets_Parentheticals
Balance Sheets Parentheticals (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Parentheticals | ||
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 500,000,000 | 500,000,000 |
Common Stock, shares issued | 250,000 | 250,000 |
Common Stock, shares outstanding | 250,000 | 250,000 |
Statements_of_Operations
Statements of Operations (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue: | ||
Rental revenue | $454,638 | $0 |
Other income | 7,500 | 0 |
Total revenue | 462,138 | 0 |
Expenses: | ||
Management fees | 90,000 | 0 |
General and administrative | 64,307 | 11,427 |
Depreciation expense | 152,336 | 0 |
Interest expense | 344,042 | 0 |
Total expenses | 650,685 | 11,427 |
Net loss | ($188,547) | ($11,427) |
Net loss per share - Basic and Diluted | ($0.75) | ($0.57) |
Weighted average shares outstanding - Basic and Diluted | 250,000 | 20,000 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Operating Activities | ||
Net loss | ($188,547) | ($11,427) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 152,336 | 0 |
Amortization of deferred financing costs | 29,797 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,390 | 0 |
Prepaid expense | 0 | -3,632 |
Accounts payable and accrued expenses | -225,403 | -937 |
Accrued management fees due to related party | 90,000 | 0 |
Net cash used in operating activities | -139,427 | -15,996 |
Financing Activities | ||
Loans from related party | 0 | 15,963 |
Proceeds from notes payable to majority shareholder | 350,000 | 0 |
Principal payments on notes payable | -78,970 | 0 |
Dividends paid to common shareholders | -63,900 | 0 |
Net cash provided by financing activities | 207,130 | 15,963 |
Net increase (decrease) in cash and cash equivalents | 67,703 | -33 |
Cash and cash equivalents-beginning of period | 301,402 | 3,501 |
Cash and cash equivalents-end of period | 369,105 | 3,468 |
Supplemental cash flow information: | ||
Cash payments for interest (including Convertible Debenture accrued interest) | $548,150 | $0 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2015 | |
Organization | |
Organization | Note 1 – Organization |
Global Medical REIT Inc. (the “Company”) was incorporated in the state of Nevada on March 18, 2011 under the name Scoop Media, Inc. (“Scoop Media”), which was acquired by the Hong Kong company known as Heng Fai Enterprises, Ltd. (“Heng Fai”) in 2013. The Company changed to its current name effective January 6, 2014 in connection with its re-domestication into a Maryland corporation. The Company’s primary investor goal is to provide attractive risk-adjusted returns and maximize sustainable distributable cash flow. The Company’s principal investment strategy is to act on the opportunities created by the changing healthcare environment by acquiring, selectively developing and managing locally critical medical properties that are core to medical operator businesses and that meet our investment criteria. In general, the Company seeks to acquire or develop specialty medical properties in desirable markets with tenants who are expected to prosper in the changing healthcare delivery environment. The Company focuses on specialty medical properties, including medical office buildings, outpatient treatment and diagnostic facilities, physical group practice clinics, ambulatory surgery centers and specialty hospitals and treatment centers. | |
Heng Fai owns HFE USA, LLC, our majority shareholder. As of March 31, 2015, HFE USA, LLC owns an aggregate of 248,825 (or 99.5%) of the Company’s outstanding common stock. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies |
Basis of presentation | |
The accompanying financial statements are unaudited and include the accounts of the Company. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the accompanying financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended December 31, 2014. In the opinion of management, all adjustments of a normal and recurring nature necessary for a fair presentation of the financial statements for the interim periods have been made. | |
Reclassification | |
The Company reclassified $14,877 from the line item “Escrow Deposits” in its accompanying Balance Sheet as of December 31, 2014 into the line item “Cash and Cash Equivalents” in order to conform with current presentation as this balance represented cash to be used by the Company without restrictions. |
Notes_Payable_Related_to_Acqui
Notes Payable Related to Acquisitions | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Notes Payable Related to Acquisitions | ||||||
Notes Payable Related to Acquisitions | Note 3 – Notes Payable Related to Acquisitions | |||||
Omaha Note Payable | ||||||
In order to finance a portion of the purchase price for the Omaha facility, on June 5, 2014 the Company entered into a Term Loan and Security Agreement with Capital One, National Association (the “Lender”) to borrower $15.06 million (the “Loan”). The Loan bears interest at 4.91% per annum and all unpaid interest and principal is due on June 5, 2017 (the “Maturity Date”). Interest is paid in arrears. Payments began on August 1, 2014 and are due on the first day of each calendar month thereafter. Principal payments began on January 1, 2015 and are due on the first day of each calendar month thereafter based on an amortization schedule with the principal balance due on the Maturity Date. As of March 31, 2015 the Company made principal payments in the amount of $78,970. Interest expense on the note was $186,628 for the three months ended March 31, 2015. There was no interest expense incurred for the three months ended March 31, 2014. | ||||||
As of March 31, 2015, scheduled principal payments due in each calendar year listed below are as follows: | ||||||
2015 | $ | 232,566 | ||||
2016 | 325,323 | |||||
2017 | 14,423,141 | |||||
Total Payments | $ | 14,981,030 | ||||
Asheville Note Payable | ||||||
In order to finance a portion of the purchase price of the Asheville facility, on September 15, 2014 the Company entered into a Promissory Note with the Bank of North Carolina to borrow $1.7 million. The note bears interest on the outstanding principal balance at the simple, fixed interest rate of 4.75% per annum and all unpaid principal and interest is due on February 15, 2017. Commencing on October 15, 2014, the Company will make on the 15th of each calendar month until and including March 15, 2015, monthly payments consisting of interest only. Thereafter, commencing on April 15, 2015, the outstanding principal and accrued interest shall be payable in monthly amortizing payments of $10,986 each on the 15th day of each calendar month, until and including January 15, 2017. Interest expense on the note was $20,188 for the three months ended March 31, 2015. There was no interest expense incurred for the three months ended March 31, 2014. | ||||||
As of March 31, 2015, scheduled principal payments due in each calendar year listed below are as follows: | ||||||
2015 | $ | 37,791 | ||||
2016 | 52,714 | |||||
2017 | 1,609,495 | |||||
Total Payments | $ | 1,700,000 | ||||
Deferred Financing Costs | ||||||
The Company incurred deferred financing costs related to the Omaha and Asheville loans. A rollforward of the deferred financing cost balance as of March 31, 2015 is as follows: | ||||||
Balance as of December 31, 2014, net | $ | 291,691 | ||||
Amortization expense – three months ended March 31, 2015 | -29,797 | |||||
Balance as of March 31, 2015, net | $ | 261,894 | ||||
Amortization expense is included in the “Interest Expense” line item in the accompanying Statements of Operations. No amortization expense was incurred for the three months ended March 31, 2014. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Shareholders' Equity | |
Shareholders' Equity | Note 4 – Shareholders’ Equity |
Preferred Stock | |
The Company’s charter authorizes the issuance of 100,000,000 shares of preferred stock, par value $0.001 per share. As of March 31, 2015 and December 31, 2014, no shares of preferred stock were issued and outstanding. | |
Common Stock | |
The Company has 500,000,000 of authorized shares of common stock, $0.001 par value. As of March 31, 2015 and December 31, 2014, there were 250,000 outstanding common shares. | |
On January 21, 2015, the Company declared a dividend of $0.0852 per share payable to the holders of its common stock of record at the close of business February 2, 2015. Dividends shall be paid no later than the 20th day of the following month subject to compliance with applicable provisions of the Maryland General Corporation Law. The aggregate amount of the dividend was $21,300. | |
On February 19, 2015, the Company declared a dividend of $0.0852 per share payable to the holders of its common stock of record at the close of business March 2, 2015. Dividends shall be paid no later than the 20th day of the following month subject to compliance with applicable provisions of the Maryland General Corporation Law. The aggregate amount of the dividend was $21,300. | |
On March 19, 2015, the Company declared a dividend of $0.0852 per share payable to the holders of its common stock of record at the close of business March 30, 2015. Dividends shall be paid no later than the 20th day of the following month subject to compliance with applicable provisions of the Maryland General Corporation Law. The aggregate amount of the dividend was $21,300. | |
During the three months ended March 31, 2015 the Company paid total dividends to holders of its common stock of $63,900. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Related Party Transactions | ||||||
Related Party Transactions | Note 5 – Related Party Transactions | |||||
Management Agreement | ||||||
On November 10, 2014, the Company entered into a Management Agreement, with an effective date of April 1, 2014, with Inter-American Management, LLC (the “Manager”), a Delaware limited liability company and an affiliate of the Company. Under the terms of the Management Agreement, the Manager is responsible for designing and implementing our business strategy and administering our business activities and day-to-day operations. For performing these services, the Company will pay the Manager 8% of rental revenue for property management services and a base management fee equal to the greater of (a) 2.0% per annum of the Company’s net asset value (the value of the Company’s assets less the value of the Company’s liabilities), or (b) $30,000 per calendar month. For the three months ended March 31, 2015 and 2014 management fees of $90,000 and zero were incurred and expensed. As of March 31, 2015 and December 31, 2014, cumulative management fees of $360,000 and $270,000, respectively (since April 1, 2014), were incurred and expensed by us, due to the Manager, and remain unpaid. The unpaid management fee balance is included in the “Due to Related Party, Net” line item in the accompanying Balance Sheets. | ||||||
Allocated General and Administrative Expenses | ||||||
In the future, the Company may receive an allocation of general and administrative expenses from the Manager that are either clearly applicable to or were reasonably allocated to the operations of the properties. There were no allocated general and administrative expenses from the Manager for the three months ended March 31, 2015 and March 31, 2014. | ||||||
Convertible Debenture, Due to Majority Shareholder | ||||||
As of March 31, 2015 and December 31, 2014, the outstanding principal balance of the Convertible Debenture was $5,446,102. Interest expense on the Convertible Debenture was $107,429 for the three months ended March 31, 2015. No interest expense was incurred for the three months ended March 31, 2014. As discussed in the “Notes Payable to Majority Shareholder” section below, during the three months ended March 31, 2015, HFE USA, LLC loaned the Company a total of $350,000 in the form of notes payable in order to pay off all accrued interest and unpaid interest on the Convertible Debenture in the amount of approximately $341,000. The accrued interest was classified as “Accounts Payable and Accrued Expenses” on the accompanying Balance Sheets. Accordingly, as of March 31, 2015 there was no accrued interest owed on the Convertible Debenture. | ||||||
The Company analyzed the conversion option in the Convertible Debenture for derivative accounting treatment under ASC Topic 815, “Derivatives and Hedging,” and determined that the instrument does not qualify for derivative accounting. The Company therefore performed an analysis to determine if the conversion option was subject to a beneficial conversion feature and determined that the instrument does not have a beneficial conversion feature. | ||||||
Notes Payable to Majority Shareholder | ||||||
During the three months ended March 31, 2015, HFE USA, LLC made two loans to the Company in the amounts of $250,000 and $100,000 ($350,000 total loaned) in the form of notes payable that were primarily used to pay in full all accrued and unpaid interest on the Convertible Debenture in the amount of approximately $341,000. As of March 31, 2015 and December 31, 2014, the notes payable to the majority shareholder balance was $338,195 and $38,195, respectively. The notes payable balance is unsecured, due on demand, and non-interest bearing. | ||||||
Due to related party, net | ||||||
A detail of the due to related party balance as of March 31, 2015 and December 31, 2014 is as follows: | ||||||
31-Mar-15 | 31-Dec-14 | |||||
Due from Manager | $ | 42,915 | $ | 42,915 | ||
Due to Manager – management fees | -360,000 | -270,000 | ||||
Due to Manager – other funds | -103,683 | -103,683 | ||||
Due to related party, net | $ | -420,768 | $ | -330,768 |
Rental_Revenue
Rental Revenue | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Rental Revenue | ||||
Rental Revenue | Note 6 – Rental Revenue | |||
The aggregate annual minimum cash to be received by the Company on the noncancelable operating leases related to the Omaha and Asheville facilities, in effect as of March 31, 2015 are as follows in the calendar years listed below. | ||||
2015 | $ | 1,337,570 | ||
2016 | 1,836,929 | |||
2017 | 1,873,915 | |||
2018 | 1,711,177 | |||
2019 | 1,762,512 | |||
Thereafter | 6,472,544 | |||
Total Receipts | $ | 14,994,647 |
Omaha_Land_Lease_Rent_Expense
Omaha Land Lease Rent Expense | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Omaha Land Lease Rent Expense | ||||
Omaha Land Lease Rent Expense | Note 7 – Omaha Land Lease Rent Expense | |||
The Omaha facility land lease currently expires in 2033, subject to future renewal options of up to 50 years by the Company. Under the terms of the land lease, annual rents increase 12.5% every fifth anniversary of the lease. The initial land lease increase will occur in April 2017. During the three months ended March 31, 2015 the Company expensed $14,970 related to this land lease, which is included in the “General and Administrative” expense line item in the accompanying Statement of Operations for the three months ended March 31, 2015. No expense was incurred for the three months ended March 31, 2014. The aggregate minimum cash payments to be made by the Company on the non-cancelable Omaha facility related land lease in effect as of March 31, 2015, are as follows in the calendar years listed below. | ||||
2015 | $ | 44,907 | ||
2016 | 59,876 | |||
2017 | 65,493 | |||
2018 | 67,365 | |||
2019 | 67,365 | |||
Thereafter | 1,083,899 | |||
Total Payments | $ | 1,388,905 | ||
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies | |
Commitments And Contingencies | Note 8 - Commitments and Contingencies |
Litigation | |
The Company is not presently subject to any material litigation nor, to its knowledge, is any material litigation threatened against the Company, which if determined unfavorably to the Company, would have a material adverse effect on the Company’s financial position, results of operations, or cash flows. | |
Environmental Matters | |
The Company follows a policy of monitoring its properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at its properties, the Company is not currently aware of any environmental liability with respect to its properties that would have a material effect on its financial position, results of operations, or cash flows. Additionally, the Company is not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that management believes would require additional disclosure or the recording of a loss contingency. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events | |
Subsequent Events | Note 9 – Subsequent Events |
On April 17, 2015, the Company declared a dividend of $0.0852 per share payable to the holders of its common stock of record at the close of business April 29, 2015. Dividends shall be paid no later than the 20th day of the following month subject to compliance with applicable provisions of the Maryland General Corporation Law. The aggregate amount of the dividend was $21,300. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies (Policies) | |
Basis of presentation | Basis of presentation |
The accompanying financial statements are unaudited and include the accounts of the Company. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the accompanying financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended December 31, 2014. In the opinion of management, all adjustments of a normal and recurring nature necessary for a fair presentation of the financial statements for the interim periods have been made. | |
Reclassification | Reclassification |
The Company reclassified $14,877 from the line item “Escrow Deposits” in its accompanying Balance Sheet as of December 31, 2014 into the line item “Cash and Cash Equivalents” in order to conform with current presentation as this balance represented cash to be used by the Company without restrictions. |
Schedule_of_Note_Payable_Relat
Schedule of Note Payable Related to Acquistion (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Schedule of Note Payable Related to Acquistion (Tables): | ||||||
Schedule of Omaha Note Payable | As of March 31, 2015, scheduled principal payments due in each calendar year listed below are as follows: | |||||
2015 | $ | 232,566 | ||||
2016 | 325,323 | |||||
2017 | 14,423,141 | |||||
Total Payments | $ | 14,981,030 | ||||
Schedule of Asheville Note Payable (Tables) | As of March 31, 2015, scheduled principal payments due in each calendar year listed below are as follows: | |||||
2015 | $ | 37,791 | ||||
2016 | 52,714 | |||||
2017 | 1,609,495 | |||||
Total Payments | $ | 1,700,000 | ||||
Schedule_of_Deferred_Financing
Schedule of Deferred Financing Costs (Tables) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Schedule of Deferred Financing Costs | |||
Schedule of Deferred Financing Costs | A rollforward of the deferred financing cost balance as of March 31, 2015 is as follows: | ||
Balance as of December 31, 2014, net | $ | 291,691 | |
Amortization expense – three months ended March 31, 2015 | -29,797 | ||
Balance as of March 31, 2015, net | $ | 261,894 |
Schedule_of_Related_Party_Tran
Schedule of Related Party Transactions (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Schedule of Related Party Transactions | ||||||
Schedule of Related Party Transactions | A detail of the due to related party balance as of March 31, 2015 and December 31, 2014 is as follows: | |||||
31-Mar-15 | 31-Dec-14 | |||||
Due from Manager | $ | 42,915 | $ | 42,915 | ||
Due to Manager – management fees | -360,000 | -270,000 | ||||
Due to Manager – other funds | -103,683 | -103,683 | ||||
Due to related party, net | $ | -420,768 | $ | -330,768 |
Schedule_Of_Rental_Revenue_Tab
Schedule Of Rental Revenue (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Schedule Of Rental Revenue | ||||
Schedule Of Rental Revenue | The aggregate annual minimum cash to be received by the Company on the noncancelable operating leases related to the Omaha and Asheville facilities, in effect as of March 31, 2015 are as follows in the calendar years listed below. | |||
2015 | $ | 1,337,570 | ||
2016 | 1,836,929 | |||
2017 | 1,873,915 | |||
2018 | 1,711,177 | |||
2019 | 1,762,512 | |||
Thereafter | 6,472,544 | |||
Total Receipts | $ | 14,994,647 | ||
Schedule_of_rent_expense_Table
Schedule of rent expense (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Schedule of rent expense | ||||
Schedule of rent expense | The aggregate minimum cash payments to be made by the Company on the non-cancelable Omaha facility related land lease in effect as of March 31, 2015, are as follows in the calendar years listed below. | |||
2015 | $ | 44,907 | ||
2016 | 59,876 | |||
2017 | 65,493 | |||
2018 | 67,365 | |||
2019 | 67,365 | |||
Thereafter | 1,083,899 | |||
Total Payments | $ | 1,388,905 |
Organization_Details
Organization (Details) | Mar. 31, 2015 |
Organization Details: | |
LLC owns an aggregate of the Company's outstanding common stock. | 248,825 |
Reclassification_Details
Reclassification (Details) (USD $) | Dec. 31, 2014 |
Reclassification Details: | |
The Company reclassified line item "Escrow Deposits" into the line item "Cash and Cash Equivalents" | $14,877 |
DEBT_of_OMAHA_Details
DEBT of OMAHA (Details) (USD $) | Mar. 31, 2015 | Jun. 05, 2014 |
DEBT of OMAHA DETAILS: | ||
Term Loan | $15,060,000 | |
Loan bears interest per annum | 4.91% | |
The Company made principal payments | 78,970 | |
Interest expense on the note | $186,628 |
Scheduled_principal_payments_o
Scheduled principal payments of Omaha note payable due on debt (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Scheduled principal payments of Omaha note payable due on debt: | |
Principal payments due on 2015 | $232,566 |
Principal payments due on 2016 | 325,323 |
Principal payments due on 2017 | 14,423,141 |
Total Payments | $14,981,030 |
DEBT_of_ASHEVILLE_Details
DEBT of ASHEVILLE (Details) (USD $) | Mar. 31, 2015 | Sep. 15, 2014 |
DEBT of ASHEVILLE Details: | ||
Term Loan | $1,700,000 | |
Loan bears interest per annum | 4.75% | |
The outstanding principal and accrued interest,amortizing payments | 10,986 | |
Interest expense on the note | $20,188 |
Scheduled_principal_payments_o1
Scheduled principal payments of Asheville note payable due on debt (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Scheduled principal payments of Asheville note payable due on debt Details: | |
Principal payments due on 2015 | $37,791 |
Principal payments due on 2016 | 52,714 |
Principal payments due on 2017 | 1,609,495 |
Total Payments | $1,700,000 |
Deferred_Financing_Costs_Detai
Deferred Financing Costs (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Deferred Financing Costs Details: | ||
Deferred financing cost balance, net | $291,691 | |
Amortization expense - three months ended March 31, 2015 | -29,797 | |
Deferred financing cost balance, net | $261,894 |
STOCK_TRANSACTIONS_Details
STOCK TRANSACTIONS (Details) (USD $) | Mar. 31, 2015 | Feb. 19, 2015 | Jan. 21, 2015 | Dec. 31, 2014 |
STOCK TRANSACTIONS DETAILS | ||||
Shares of preferred stock authorized | 100,000,000 | 100,000,000 | ||
Shares of preferred stock, par value | $0.00 | $0.00 | ||
Shares of common stock authorized | 500,000,000 | 500,000,000 | ||
Shares of common stock, par value | $0.00 | $0.00 | ||
Outstanding common stock shares | 250,000 | 250,000 | ||
One-time dividend per share payable | $0.09 | $0.09 | $0.09 | |
One-time dividend per share payable value | $21,300 | $21,300 | $21,300 | |
Total dividends paid to holders of its common stock | $63,900 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Nov. 10, 2014 | |
RELATED PARTY TRANSACTIONS DETAILS | |||
Company will pay rental revenue to the Manager for property management services | 8.00% | 8.00% | |
Base management fee equal to Company's net asset value per annum in percentage | 2.00% | 2.00% | |
Base management fee equal to Company's net asset value payable per calendar month | $30,000 | $30,000 | |
Management fees due | 90,000 | 0 | |
Cumulative Management fees due | $360,000 | $270,000 |
Convertible_Debenture_Due_to_M
Convertible Debenture, Due to Majority Shareholder (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Convertible Debenture, Due to Majority Shareholder Details: | ||
Convertible Debenture outstanding | $5,446,102 | $5,446,102 |
Interest expense on the Convertible Debenture | 107,429 | |
loaned to the Company in the form of notes payable | 350,000 | |
Accrued interest and unpaid interest on the Convertible Debenture | $341,000 |
Notes_Payable_to_Majority_Shar
Notes Payable to Majority Shareholder (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Notes Payable to Majority Shareholder Details: | ||
Notes payable to the majority shareholder | $338,195 | $38,195 |
Due_to_related_party_net_Detai
Due to related party, net (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Due to related party, net Details: | ||
Due from Manager | $42,915 | $42,915 |
Due to Manager - management fees | -360,000 | -270,000 |
Due to Manager - other funds | -103,683 | -103,683 |
Due to related party, net | ($420,768) | ($330,768) |
Rental_Revenue_Details
Rental Revenue (Details) (USD $) | Mar. 31, 2015 |
Rental Revenue Details | |
Operating lease 2015 | $1,337,570 |
Operating lease 2016 | 1,836,929 |
Operating lease 2017 | 1,873,915 |
Operating lease 2018 | 1,711,177 |
Operating lease 2019 | 1,762,512 |
Thereafter | 6,472,544 |
Total Payments | $14,994,647 |
Rent_Expense_Details
Rent Expense (Details) (USD $) | Mar. 31, 2015 |
Rent Expense Details: | |
Annual rents increase | 12.50% |
Expensed related to the land lease | $14,970 |
Future minimum lease payments 2015 | 44,907 |
Future minimum lease payments 2016 | 59,876 |
Future minimum lease payments 2017 | 65,493 |
Future minimum lease payments 2018 | 67,365 |
Future minimum lease payments 2019 | 67,365 |
Thereafter | 1,083,899 |
Total Payments | $1,388,905 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Apr. 17, 2015 |
Subsequent Events Details: | |
Company declared a dividend per share payable to the holders of its common stock | 0.0852 |
Aggregate amount of the dividend | $21,300 |