Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Sep. 28, 2021 | Dec. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2021 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MacKenzie Realty Capital, Inc. | ||
Entity Central Index Key | 0001550913 | ||
Entity Address, State or Province | CA | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 13,342,821.24 |
Consolidated Balance Sheet (Suc
Consolidated Balance Sheet (Successor Basis) | Jun. 30, 2021USD ($) |
Real Estate Assets | |
Land | $ 16,293,591 |
Building, fixtures and improvements | 38,348,005 |
Intangible lease assets | 5,588,942 |
Less: accumulated depreciation and amortization | (2,257,903) |
Total real estate assets, net | 57,972,635 |
Cash | 4,833,848 |
Restricted cash | 2,919,705 |
Investments, at fair value | 39,909,838 |
Unconsolidated investments (non-securities), at fair value | 30,599,405 |
Investments income, rent and other receivables | 1,985,325 |
Prepaid expenses and other assets | 332,271 |
Total assets | 138,553,027 |
Liabilities | |
Mortgage notes payable | 38,693,330 |
Accounts payable and accrued liabilities | 918,449 |
Below-market lease liabilities, net | 838,313 |
Deferred rent and other liabilities | 738,178 |
Due to related entities | 1,937 |
Total liabilities | 41,190,207 |
Equity | |
Common stock, $0.0001 par value, 80,000,000 shares authorized; 13,316,426.79 shares issued and outstanding | 1,332 |
Capital in excess of par value | 120,408,505 |
Accumulated deficit | (23,298,857) |
Total stockholders' equity | 97,110,980 |
Non-controlling interests | 251,840 |
Total equity | 97,362,820 |
Total liabilities and equity | $ 138,553,027 |
Consolidated Balance Sheet (S_2
Consolidated Balance Sheet (Successor Basis) (Parenthetical) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Equity | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 13,316,426.79 | 12,836,608.02 |
Common stock, shares outstanding (in shares) | 13,316,426.79 | 12,836,608.02 |
Consolidated Statements of Asse
Consolidated Statements of Assets and Liabilities (Predecessor Basis) | Jun. 30, 2020USD ($)$ / shares |
Assets | |
Investments, at fair value | $ 93,705,145 |
Cash | 8,957,393 |
Accounts receivable | 1,087,432 |
Other assets | 138,773 |
Deferred offering costs, net | 278,021 |
Total assets | 104,166,764 |
Liabilities | |
Accounts payable and accrued liabilities | 135,040 |
Capital pending acceptance | 87,739 |
Due to related entities | 718,264 |
Total liabilities | 941,043 |
Net assets | |
Common stock, $0.0001 par value, 80,000,000 shares authorized; 12,836,608.02 shares issued and outstanding) | 1,284 |
Capital in excess of par value | 116,455,600 |
Total distributions in excess of earnings | (13,231,163) |
Total net assets | 103,225,721 |
Total liabilities and equity | $ 104,166,764 |
Net asset value per share (in dollars per share) | $ / shares | $ 8.04 |
Non-Controlled/Non-Affiliated Investments [Member] | |
Assets | |
Investments, at fair value | $ 38,081,970 |
Affiliated Investments [Member] | |
Assets | |
Investments, at fair value | 12,107,884 |
Controlled Investments [Member] | |
Assets | |
Investments, at fair value | $ 43,515,291 |
Consolidated Statements of As_2
Consolidated Statements of Assets and Liabilities (Predecessor Basis) (Parenthetical) | Jun. 30, 2020USD ($)$ / sharesshares |
Assets | |
Investments, at cost | $ 104,692,648 |
Equity | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Common stock, shares authorized (in shares) | shares | 80,000,000 |
Common stock, shares issued (in shares) | shares | 12,836,608.02 |
Common stock, shares outstanding (in shares) | shares | 12,836,608.02 |
Non-Controlled/Non-Affiliated Investments [Member] | |
Assets | |
Investments, at cost | $ 48,895,786 |
Affiliated Investments [Member] | |
Assets | |
Investments, at cost | 12,426,110 |
Controlled Investments [Member] | |
Assets | |
Investments, at cost | $ 43,370,752 |
Consolidated Schedule of Invest
Consolidated Schedule of Investments (Predecessor Basis) | Jun. 30, 2020USD ($)shares | |
Investments [Abstract] | ||
Cost Basis | $ 104,692,648 | |
Total Fair Value | $ 93,705,145 | |
% of Net Assets | 90.77% | |
Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Cost Basis | $ 8,454,348 | |
Total Fair Value | $ 7,244,654 | |
% of Net Assets | 7.02% | |
Non Traded Company [Member] | ||
Investments [Abstract] | ||
Cost Basis | $ 42,474,614 | |
Total Fair Value | $ 32,808,076 | [1] |
% of Net Assets | 31.78% | |
LP Interest [Member] | ||
Investments [Abstract] | ||
Cost Basis | $ 53,713,785 | |
Total Fair Value | $ 53,618,425 | |
% of Net Assets | 51.94% | |
Investment Trust [Member] | ||
Investments [Abstract] | ||
Cost Basis | $ 49,901 | |
Total Fair Value | $ 33,990 | |
% of Net Assets | 0.03% | |
Non-Qualifying Assets [Member] | ||
Investments [Abstract] | ||
% of Net Assets | 6.95% | |
Non-Qualifying Assets [Member] | Maximum [Member] | ||
Investments [Abstract] | ||
% of Net Assets | 30.00% | |
Illiquid Securities [Member] | ||
Investments [Abstract] | ||
% of Net Assets | 83.00% | |
Non-Income Producing Securities [Member] | ||
Investments [Abstract] | ||
% of Net Assets | 36.00% | |
American Finance Trust [Member] | 7.5% PFD [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 34,000 | |
Cost Basis | $ 610,229 | |
Total Fair Value | $ 797,980 | [2] |
% of Net Assets | 0.78% | |
American Finance Trust [Member] | Class A [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 86,500 | |
Cost Basis | $ 500,619 | |
Total Fair Value | $ 686,378 | [2] |
% of Net Assets | 0.66% | |
Apartment Investment & Management Company [Member] | Class A [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 26,200 | |
Cost Basis | $ 999,945 | |
Total Fair Value | $ 986,168 | [2] |
% of Net Assets | 0.96% | |
Ashford Hospitality Trust, Inc. [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 360,000 | |
Cost Basis | $ 244,092 | |
Total Fair Value | $ 260,136 | [2] |
% of Net Assets | 0.25% | |
Bluerock Residential Growth REIT, Inc. [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 70,000 | |
Cost Basis | $ 513,940 | |
Total Fair Value | $ 565,600 | [2] |
% of Net Assets | 0.55% | |
CBL & Associates Properties, Inc. [Member] | Preferred D [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 188,000 | |
Cost Basis | $ 1,707,042 | |
Total Fair Value | $ 169,200 | [2] |
% of Net Assets | 0.16% | |
City Office REIT, Inc. [Member] | Preferred A [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 12,196 | |
Cost Basis | $ 201,436 | |
Total Fair Value | $ 288,679 | [2] |
% of Net Assets | 0.28% | |
CorEnergy Infrastructure [Member] | 7.375% PFD A [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 36,031 | |
Cost Basis | $ 621,401 | |
Total Fair Value | $ 487,139 | [2] |
% of Net Assets | 0.47% | |
Host Hotels & Resorts Inc [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 24,500 | |
Cost Basis | $ 237,354 | |
Total Fair Value | $ 264,355 | [2] |
% of Net Assets | 0.26% | |
Independence Realty Trust, Inc. [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 33,000 | |
Cost Basis | $ 295,551 | |
Total Fair Value | $ 379,170 | [2] |
% of Net Assets | 0.37% | |
NexPoint Residential Trust, Inc. [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 8,000 | |
Cost Basis | $ 294,490 | |
Total Fair Value | $ 282,800 | [2] |
% of Net Assets | 0.27% | |
One Liberty Properties, Inc. [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 24,500 | |
Cost Basis | $ 370,318 | |
Total Fair Value | $ 431,690 | [2] |
% of Net Assets | 0.42% | |
RLJ Lodging Trust [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 42,000 | |
Cost Basis | $ 243,541 | |
Total Fair Value | $ 396,480 | [2] |
% of Net Assets | 0.38% | |
The Macerich Company [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 59,943 | |
Cost Basis | $ 1,018,578 | |
Total Fair Value | $ 537,689 | [2] |
% of Net Assets | 0.52% | |
VEREIT, Inc [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 58,000 | |
Cost Basis | $ 294,437 | |
Total Fair Value | $ 372,940 | [2] |
% of Net Assets | 0.36% | |
WP Carey, Inc. [Member] | Publicly Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 5,000 | |
Cost Basis | $ 301,375 | |
Total Fair Value | $ 338,250 | [2] |
% of Net Assets | 0.33% | |
Benefit Street Partners Realty Trust, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 239,401.33 | |
Cost Basis | $ 3,488,167 | |
Total Fair Value | $ 2,496,956 | [3] |
% of Net Assets | 2.41% | |
Carter Validus Mission Critical REIT II, Inc. [Member] | Class A [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 288,506 | |
Cost Basis | $ 1,666,123 | |
Total Fair Value | $ 1,632,944 | [3] |
% of Net Assets | 1.58% | |
CIM Real Estate Finance Trust, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 522,144.54 | |
Cost Basis | $ 3,043,423 | |
Total Fair Value | $ 2,349,650 | [3] |
% of Net Assets | 2.28% | |
CNL Healthcare Properties, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 268,532.71 | |
Cost Basis | $ 1,562,429 | |
Total Fair Value | $ 1,176,173 | [3] |
% of Net Assets | 1.14% | |
Cole Credit Property Trust V, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 55,455.36 | |
Cost Basis | $ 693,789 | |
Total Fair Value | $ 610,009 | [3] |
% of Net Assets | 0.59% | |
Cole Credit Property Trust V, Inc. [Member] | Class T [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 1,466.55 | |
Cost Basis | $ 18,438 | |
Total Fair Value | $ 16,132 | [3] |
% of Net Assets | 0.02% | |
Cole Office & Industrial REIT (CCIT II), Inc [Member] | Class A [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 17,792.56 | |
Cost Basis | $ 114,700 | |
Total Fair Value | $ 124,370 | [3] |
% of Net Assets | 0.12% | |
Cole Office & Industrial REIT (CCIT II), Inc [Member] | Class T [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 1,441.84 | |
Cost Basis | $ 6,906 | |
Total Fair Value | $ 10,078 | [3] |
% of Net Assets | 0.01% | |
Corporate Property Associates 18 Global A Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 4,695.14 | |
Cost Basis | $ 39,627 | |
Total Fair Value | $ 30,471 | [3] |
% of Net Assets | 0.03% | |
First Capital Real Estate Trust, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 3,792.51 | |
Cost Basis | $ 15,161 | |
Total Fair Value | $ 13,388 | [3],[4] |
% of Net Assets | 0.01% | |
FSP 1441 Main Street [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 15.73 | |
Cost Basis | $ 8,559 | |
Total Fair Value | $ 39,128 | [3],[4] |
% of Net Assets | 0.04% | |
FSP 303 East Wacker Drive Corp. Liquidating Trust [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 3 | |
Cost Basis | $ 30 | |
Total Fair Value | $ 679 | [3],[4] |
% of Net Assets | 0.00% | [5] |
FSP Energy Tower I Corp. Liquidating Trust [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 19.35 | |
Cost Basis | $ 7,929 | |
Total Fair Value | $ 9,810 | [3],[4],[6] |
% of Net Assets | 0.01% | |
FSP Grand Boulevard Liquidating Trust [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 7.50 | |
Cost Basis | $ 8 | |
Total Fair Value | $ 2,851 | [3],[4] |
% of Net Assets | 0.00% | [5] |
FSP Satellite Place [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 19.60 | |
Cost Basis | $ 588,176 | |
Total Fair Value | $ 532,579 | [3],[4],[6] |
% of Net Assets | 0.52% | |
Griffin Capital Essential Asset REIT, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 23,044.28 | |
Cost Basis | $ 151,802 | |
Total Fair Value | $ 144,027 | [3] |
% of Net Assets | 0.14% | |
Griffin-American Healthcare REIT III, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 59,480.45 | |
Cost Basis | $ 324,537 | |
Total Fair Value | $ 312,272 | [3] |
% of Net Assets | 0.30% | |
GTJ REIT, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 1,000 | |
Cost Basis | $ 11,530 | |
Total Fair Value | $ 9,280 | [3] |
% of Net Assets | 0.01% | |
Healthcare Trust, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 479,718.92 | |
Cost Basis | $ 4,806,568 | |
Total Fair Value | $ 3,271,683 | [3] |
% of Net Assets | 3.17% | |
Highlands REIT Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 23,225,520.45 | |
Cost Basis | $ 4,120,660 | |
Total Fair Value | $ 3,019,318 | [3],[4] |
% of Net Assets | 2.92% | |
HGR Liquidating Trust [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 73,170.41 | |
Cost Basis | $ 244,648 | |
Total Fair Value | $ 292,682 | [3],[4] |
% of Net Assets | 0.28% | |
Hospitality Investors Trust, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 20,493.11 | |
Cost Basis | $ 90,607 | |
Total Fair Value | $ 20,083 | [3],[4] |
% of Net Assets | 0.02% | |
InvenTrust Properties Corp. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 2,235,413.80 | |
Cost Basis | $ 2,710,159 | |
Total Fair Value | $ 2,749,559 | [3] |
% of Net Assets | 2.66% | |
KBS Real Estate Investment Trust II, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 1,365,338.22 | |
Cost Basis | $ 3,754,369 | |
Total Fair Value | $ 2,266,461 | [3],[4] |
% of Net Assets | 2.20% | |
KBS Real Estate Investment Trust III, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 65,717.13 | |
Cost Basis | $ 550,359 | |
Total Fair Value | $ 529,680 | [3] |
% of Net Assets | 0.51% | |
New York City REIT, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 319,024.14 | |
Cost Basis | $ 3,800,940 | |
Total Fair Value | $ 3,110,485 | [3],[4] |
% of Net Assets | 3.01% | |
NorthStar Healthcare Income, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 23,573.29 | |
Cost Basis | $ 87,643 | |
Total Fair Value | $ 35,596 | [3],[4] |
% of Net Assets | 0.03% | |
Phillips Edison & Company, Inc [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 851,563.96 | |
Cost Basis | $ 6,286,760 | |
Total Fair Value | $ 4,589,930 | [3] |
% of Net Assets | 4.45% | |
SmartStop Self Storage REIT, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 7,304.42 | |
Cost Basis | $ 54,166 | |
Total Fair Value | $ 57,048 | [3] |
% of Net Assets | 0.06% | |
Steadfast Apartment REIT [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 73,226.79 | |
Cost Basis | $ 815,995 | |
Total Fair Value | $ 741,055 | [3] |
% of Net Assets | 0.72% | |
Strategic Realty Trust, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 321,296.92 | |
Cost Basis | $ 1,252,790 | |
Total Fair Value | $ 649,020 | [3] |
% of Net Assets | 0.63% | |
Summit Healthcare REIT, Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 1,409,436.22 | |
Cost Basis | $ 1,926,736 | |
Total Fair Value | $ 1,874,550 | [3],[4],[6] |
% of Net Assets | 1.82% | |
The Parking REIT Inc. [Member] | Non Traded Company [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 17,989.90 | |
Cost Basis | $ 230,880 | |
Total Fair Value | $ 90,129 | [3],[4] |
% of Net Assets | 0.09% | |
3100 Airport Way South LP [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 1 | |
Cost Basis | $ 355,000 | |
Total Fair Value | $ 320,253 | [3] |
% of Net Assets | 0.31% | |
5210 Fountaingate, LP [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 9.89 | |
Cost Basis | $ 500,000 | |
Total Fair Value | $ 425,796 | [3],[4],[6] |
% of Net Assets | 0.41% | |
Bishop Berkeley, LLC [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 4,050 | |
Cost Basis | $ 4,050,000 | |
Total Fair Value | $ 3,854,223 | [3],[7] |
% of Net Assets | 3.73% | |
BP3 Affiliate, LLC [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 1,668 | |
Cost Basis | $ 1,668,000 | |
Total Fair Value | $ 1,668,000 | [3],[4],[6] |
% of Net Assets | 1.62% | |
BR Cabrillo LLC [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 346,723.23 | |
Cost Basis | $ 104,944 | |
Total Fair Value | $ 104,017 | [3],[4] |
% of Net Assets | 0.10% | |
BR Everwood Investment Co, LLC [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 3,750,000 | |
Cost Basis | $ 3,750,000 | |
Total Fair Value | $ 3,750,000 | [3],[6] |
% of Net Assets | 3.63% | |
BR Sunrise Parc Investment Co, LLC [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 2,720,911 | |
Cost Basis | $ 2,720,911 | |
Total Fair Value | $ 2,720,911 | [3],[6] |
% of Net Assets | 2.64% | |
Britannia Preferred Members, LLC [Member] | Class 1 [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 103.88 | |
Cost Basis | $ 2,597,000 | |
Total Fair Value | $ 3,505,950 | [3],[4],[7] |
% of Net Assets | 3.40% | |
Britannia Preferred Members, LLC [Member] | Class 2 [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 514,858.30 | |
Cost Basis | $ 6,826,931 | |
Total Fair Value | $ 7,089,599 | [3],[4],[7] |
% of Net Assets | 6.87% | |
Capitol Hill Partners, LLC [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 190,000 | |
Cost Basis | $ 1,900,000 | |
Total Fair Value | $ 1,468,700 | [3],[4],[7] |
% of Net Assets | 1.42% | |
Citrus Park Hotel Holdings, LLC [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 5,000,000 | |
Cost Basis | $ 5,000,000 | |
Total Fair Value | $ 5,000,000 | [3],[7] |
% of Net Assets | 4.84% | |
Dimensions28 LLP [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 10,800 | |
Cost Basis | $ 10,801,015 | |
Total Fair Value | $ 10,949,688 | [3],[7] |
% of Net Assets | 10.61% | |
Lakemont Partners, LLC [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 1,000 | |
Cost Basis | $ 941,180 | |
Total Fair Value | $ 857,160 | [3],[6] |
% of Net Assets | 0.83% | |
MacKenzie Realty Operating Partnership, LP [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 1,451,642.63 | |
Cost Basis | $ 12,145,905 | |
Total Fair Value | $ 11,613,141 | [3],[4],[7] |
% of Net Assets | 11.25% | |
MPF Pacific Gateway [Member] | Class B [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 23.20 | |
Cost Basis | $ 6,287 | |
Total Fair Value | $ 7,164 | [3],[4],[6] |
% of Net Assets | 0.01% | |
Redwood Mortgage Investors VIII [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 56,300.04 | |
Cost Basis | $ 29,700 | |
Total Fair Value | $ 12,949 | [3] |
% of Net Assets | 0.01% | |
Satellite Investment Holdings, LLC [Member] | Class B [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 0.31 | |
Cost Basis | $ 22 | |
Total Fair Value | $ 8,960 | [3],[4] |
% of Net Assets | 0.01% | |
Secured Income, LP [Member] | LP Interest [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 64,670 | |
Cost Basis | $ 316,890 | |
Total Fair Value | $ 261,914 | [3],[4],[6] |
% of Net Assets | 0.25% | |
Coastal Realty Business Trust, REEP, Inc. [Member] | Investment Trust [Member] | ||
Investments [Abstract] | ||
Shares/Units (in shares) | shares | 72,320 | |
Cost Basis | $ 49,901 | |
Total Fair Value | $ 33,990 | [3],[4],[7] |
% of Net Assets | 0.03% | |
[1] | Investments primarily in non-traded public REITs or their successors. | |
[2] | Non-qualifying assets under Section 55(a) of the 1940 Act. As of June 30, 2020, the total percentage of non-qualifying assets is 6.95%, and as a business development company non-qualifying assets may not exceed 30% of our total assets. | |
[3] | Investments in illiquid securities, or securities that are not traded on a national exchange. As of June 30, 2020, 83.00% of the Company's total assets are in illiquid securities. | |
[4] | Investments in non-income producing securities. As of June 30, 2020, 36.00% of the Company's total assets are in non-income producing securities. | |
[5] | amount is below 0.01% | |
[6] | Under the 1940 Act, the Company generally is deemed to be an "affiliated person" of a portfolio company if it owns between 5% and 25% of the portfolio company's voting securities. As of June 30, 2020, the Company is deemed to be "affiliated" with these portfolio companies despite that fact that the Company does not have the power to exercise control over the management or policies of such portfolio companies. See additional disclosures in Note 6. | |
[7] | Under the 1940 Act, the Company generally is deemed to "control" a portfolio company if it owns more than 25% of the portfolio company's voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of June 30, 2020, the Company is deemed to be in "control" of these portfolio companies despite that fact that the Company does not have the power to exercise control over the management or policies of such portfolio companies. See additional disclosures in Note 6. |
Consolidated Statement of Opera
Consolidated Statement of Operations (Successor Basis) | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Revenue | |
Rental and reimbursements | $ 3,745,115 |
Expenses | |
Property operating and maintenance | 2,330,455 |
Depreciation and amortization | 2,193,953 |
Asset management fees to related party (note 6) | 1,354,323 |
Interest expense | 637,691 |
Administrative cost reimbursements to related party (note 6) | 310,400 |
General and administrative | 139,326 |
Professional fees | 136,750 |
Transfer agent cost reimbursements to related party (note 6) | 61,600 |
Directors' fees | 34,000 |
Total operating expenses | 7,198,498 |
Operating loss | (3,453,383) |
Other income | |
Dividend and distribution income from equity securities at fair value | 925,948 |
Net unrealized gain on equity securities at fair value | 1,685,130 |
Net income from equity method investments at fair value | 354,921 |
Net realized gain from investments | 737,332 |
Net income | 249,948 |
Net loss attributable to non-controlling interests | 14,209 |
Net income attributable to common stockholders | $ 264,157 |
Net income per share attributable to common stockholders (in dollars per share) | $ / shares | $ 0.02 |
Weighted average common shares outstanding (in shares) | shares | 13,332,536 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Predecessor Basis) - USD ($) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investment income | |||
Total investment income | $ 1,881,544 | $ 8,729,941 | $ 11,879,290 |
Operating expenses | |||
Base management fee (note 6) | 1,335,376 | 2,549,076 | 2,206,227 |
Portfolio structuring fee (note 6) | 6,679 | 588,203 | 707,589 |
Subordinated incentive fee (reversal) (note 6) | 0 | 1,789,870 | |
Administrative cost reimbursements (note 6) | 310,400 | 680,000 | 570,667 |
Transfer agent cost reimbursements (note 6) | 61,600 | 80,000 | 23,333 |
Amortization of deferred offering costs | 342,015 | 880,138 | 556,165 |
Professional fees | 235,132 | 263,868 | 145,112 |
Directors' fees | 36,000 | 68,000 | 64,500 |
Printing and mailing | 70,528 | 86,507 | 58,774 |
Other general and administrative | 31,665 | 65,292 | 126,295 |
Total operating expenses | 2,429,395 | 5,261,084 | 6,248,532 |
Net investment income before taxes | (547,851) | 3,468,857 | 5,630,758 |
Income tax provision (benefit) - (note 2) | 0 | 0 | (13,348) |
Net investment income (loss) | (547,851) | 3,468,857 | 5,644,106 |
Realized and unrealized gain (loss) on investments | |||
Net realized gain (loss) | 1,016,326 | 1,799,988 | 1,204,050 |
Net unrealized gain (loss) | (10,135,612) | (16,994,397) | (3,962,649) |
Total net realized and unrealized gain (loss) on investments | (9,119,286) | (15,194,409) | (2,758,599) |
Net increase (decrease) in net assets resulting from operations | $ (9,667,137) | $ (11,725,552) | $ 2,885,507 |
Net increase (decrease) in net assets resulting from operations per share (in dollars per share) | $ (0.74) | $ (0.96) | $ 0.29 |
Weighted average common shares outstanding (in shares) | 13,020,208 | 12,198,040 | 9,951,816 |
Non-Controlled/Non-Affiliated Investments [Member] | |||
Investment income | |||
Dividend and operational/sales distributions | $ 1,079,159 | $ 5,012,907 | $ 8,995,648 |
Interest and other income | 899 | 353,636 | 374,121 |
Realized and unrealized gain (loss) on investments | |||
Net realized gain (loss) | 1,022,383 | 1,216,657 | 1,197,788 |
Net unrealized gain (loss) | (2,005,301) | (12,656,209) | (5,474,933) |
Affiliated Investments [Member] | |||
Investment income | |||
Dividend and operational/sales distributions | 208,663 | 1,011,245 | 1,549,329 |
Realized and unrealized gain (loss) on investments | |||
Net realized gain (loss) | (6,057) | 583,331 | 0 |
Net unrealized gain (loss) | (40,100) | (1,534,938) | 621,817 |
Controlled Investments [Member] | |||
Investment income | |||
Dividend and operational/sales distributions | 592,823 | 2,352,153 | 960,192 |
Realized and unrealized gain (loss) on investments | |||
Net realized gain (loss) | 0 | 6,262 | |
Net unrealized gain (loss) | $ (8,090,211) | $ (2,803,250) | $ 890,467 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (Successor Basis) - 6 months ended Jun. 30, 2021 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2020 | $ 1,336 | $ 120,613,042 | $ (22,898,300) | $ 97,716,078 | $ 66,652 | $ 97,782,730 |
Balance (in shares) at Dec. 31, 2020 | 13,362,419.23 | |||||
Capital contributions by non-controlling interest holders | $ 0 | 0 | 0 | 0 | 200,000 | 200,000 |
Dividends to stockholders | 0 | 0 | (664,714) | (664,714) | (665,317) | |
Dividends to stockholders | (603) | |||||
Net income (loss) | 0 | 0 | 264,157 | 264,157 | (14,209) | 249,948 |
Issuance of common stock through reinvestment of dividends | $ 2 | 204,275 | 0 | 204,277 | 0 | 204,277 |
Issuance of common stock through reinvestment of dividends (in shares) | 22,143.48 | |||||
Repurchase of common stock | $ (6) | (408,812) | 0 | (408,818) | 0 | (408,818) |
Repurchase of common stock (in shares) | (68,135.92) | |||||
Balance at Jun. 30, 2021 | $ 1,332 | $ 120,408,505 | $ (23,298,857) | $ 97,110,980 | $ 251,840 | $ 97,362,820 |
Balance (in shares) at Jun. 30, 2021 | 13,316,426.79 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Net Assets (Predecessor Basis) - USD ($) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operations | |||
Net investment income (loss) | $ (547,851) | $ 3,468,857 | $ 5,644,106 |
Net realized gain | 1,016,326 | 1,799,988 | 1,204,050 |
Net unrealized loss | (10,135,612) | (16,994,397) | (3,962,649) |
Net increase (decrease) in net assets resulting from operations | (9,667,137) | (11,725,552) | 2,885,507 |
Dividends | |||
Dividends to stockholders | (5,542,591) | (7,237,635) | |
Capital share transactions | |||
Issuance of common stock | 218,439 | 19,505,452 | 23,244,171 |
Issuance of common stock to redeem subsidiary's non-controlling interest | 3,957,115 | ||
Issuance of common stock through reinvestment of dividends | 2,891,349 | 3,006,069 | |
Redemption of common stock | (3,194,670) | (2,368,035) | |
Selling commissions and fees | (18,060) | (1,823,648) | (2,010,015) |
Non-controlling interest in consolidated subsidiary | 66,652 | ||
Net increase in net assets resulting from capital share transactions | 4,224,146 | 17,378,483 | 21,872,190 |
Total increase (decrease) in net assets | (5,442,991) | 110,340 | 17,520,062 |
Net assets at beginning of the period | 103,225,721 | 103,115,381 | 85,595,319 |
Net assets at end of the period | $ 97,782,730 | $ 103,225,721 | $ 103,115,381 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Successor Basis) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Cash flows from operating activities: | |
Net income | $ 249,948 |
Adjustments to reconcile net income to net cash from operating activities: | |
Net unrealized gain on equity securities | (1,685,130) |
Net income from equity method investments at fair value | 745,562 |
Net realized gain on investments | (737,332) |
Depreciation and amortization | 2,193,953 |
Accretion of market lease and other intangibles, net | (35,187) |
Changes in assets and liabilities: | |
Investment income, rent and other receivables | (252,735) |
Prepaid expenses and other assets | 569,221 |
Accounts payable and accrued liabilities | 340,292 |
Deferred rent and other liabilities | 285,850 |
Due to related entities | (703,660) |
Net cash from operating activities | 970,782 |
Cash flows from investing activities: | |
Proceeds from sale of investments | 10,506,662 |
Investments in real estate assets | (28,623,637) |
Purchase of investments | (9,303,745) |
Return of capital distributions | 6,001,052 |
Net cash from investing activities | (21,419,668) |
Cash flows from financing activities: | |
Proceeds from mortgage notes payable | 15,125,000 |
Payments on mortgage notes payable | (406,215) |
Dividend to stockholders | (461,040) |
Repurchase of common stock | (408,818) |
Capital contributions by non-controlling interest holders | 200,000 |
Net cash from financing activities | 14,048,927 |
Net increase (decrease) in cash | (6,399,959) |
Cash and restricted cash at beginning of the period | 14,153,512 |
Cash and restricted cash at end of the period | 7,753,553 |
Cash at end of the period | 4,833,848 |
Restricted cash at end of the period | 2,919,705 |
Supplemental disclosure of non-cash financing activities and other cash flow information | |
Issuance of common stock through reinvestment of dividends | 204,277 |
Cash paid for interest | $ 605,018 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Predecessor Basis) - USD ($) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | |||
Net increase (decrease) in net assets resulting from operations | $ (9,667,137) | $ (11,725,552) | $ 2,885,507 |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash from operating activities: | |||
Proceeds from sale of investments, net | 5,204,853 | 8,057,094 | 57,437,720 |
Return of capital | 11,486,835 | 31,368,113 | 19,019,276 |
Purchase of investments | (12,685,590) | (45,079,613) | (107,876,237) |
Net realized gain on investments | (1,016,326) | (1,799,988) | (1,204,050) |
Net unrealized (gain) loss on investments | 10,135,612 | 16,994,397 | 3,962,649 |
Amortization of deferred offering costs | 342,015 | 880,138 | 556,165 |
Changes in assets and liabilities: | |||
Investment income, rent and other receivables | (447,398) | ||
Accounts receivable | 2,082,636 | 2,708,225 | |
Due from related entities | (150,866) | ||
Other assets | 65,129 | 41,846 | 180,875 |
Payment of deferred offering costs | (36,578) | (717,839) | (709,871) |
Accounts payable and accrued liabilities | (48,028) | (80,251) | 198,907 |
Income tax payable | 0 | (37,153) | |
Due to related entities | (40,083) | (1,747,621) | 658,857 |
Deferred tax liability | 0 | (3,518) | |
Net cash from operating activities | 3,142,438 | (1,726,640) | (22,222,648) |
Cash flows from investing activities: | |||
Cash acquired through consolidation of subsidiary | 1,932,088 | ||
Net cash from investing activities | 1,932,088 | ||
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 218,439 | 19,505,452 | 23,244,171 |
Redemption of common stock | (3,194,670) | (2,368,035) | |
Dividend to stockholders | (4,528,343) | (3,793,273) | |
Payment of selling commissions and fees | (9,107) | (1,796,648) | (2,045,661) |
Change in capital pending acceptance | (87,739) | (580,426) | 21,865 |
Net cash from financing activities | 121,593 | 9,405,365 | 15,059,067 |
Net increase (decrease) in cash | 5,196,119 | 7,678,725 | (7,163,581) |
Cash and restricted cash at beginning of the period | 8,957,393 | 1,278,668 | 8,442,249 |
Cash and restricted cash at end of the period | 14,153,512 | 8,957,393 | 1,278,668 |
Cash at end of the period | 12,539,943 | 8,957,393 | |
Restricted cash at end of the period | 1,613,569 | ||
Non-cash investing and financing activities: | |||
Issuance of the Company's common stocks to redeem subsidiary's non-controlling interests | 3,957,115 | ||
Issuance of common stock through reinvestment of dividends | $ 2,891,349 | $ 3,006,069 | |
Assets: | |||
Real estate assets | 30,196,471 | ||
Cash and restricted cash | 1,932,088 | ||
Rents and other receivable | 197,760 | ||
Other assets | 837,133 | ||
Liabilities: | |||
Mortgage note payable | 23,974,545 | ||
Accounts payable and accrued liabilities | 943,805 | ||
Due to affiliates | 150,866 | ||
Net assets | $ 8,094,236 |
PRINCIPAL BUSINESS AND ORGANIZA
PRINCIPAL BUSINESS AND ORGANIZATION | 12 Months Ended |
Jun. 30, 2021 | |
PRINCIPAL BUSINESS AND ORGANIZATION [Abstract] | |
PRINCIPAL BUSINESS AND ORGANIZATION | NOTE 1 – PRINCIPAL BUSINESS AND ORGANIZATION MacKenzie Realty Capital, Inc. (the “Parent Company” ) was incorporated under the general corporation laws of the State of Maryland on January 25, 2012. The Parent Company was formerly a non-diversified, closed-end investment company that elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (“1940 Act”). The Parent Company withdrew its election to be treated as a BDC on December 31, 2020. The Parent Company has elected to be treated as a real estate investment trust (“REIT”) as defined under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Parent Company is authorized to issue 100,000,000 shares, of which (i) 80,000,000 are designated as common stock, with a $0.0001 par value per share; and (ii) 20,000,000 are designated as preferred stock, with a $0.0001 par value per share. is June 30. The Parent Company filed its initial registration statement in June 2012 with the Securities and Exchange Commission (“SEC”) to register the initial public offering (“IPO”) of 5,000,000 shares of its common stock. The IPO commenced in January 2014 and concluded in October 2016. The Parent Company filed a second registration statement with the SEC to register a subsequent public offering of 15,000,000 shares of its common stock. The second offering commenced in December 2016 and concluded on October 28, 2019. The Parent Company filed a third registration statement with the SEC to register a public offering of 15,000,000 shares of its common stock that was declared effective by the SEC on October 31, 2019. The third offering commenced shortly thereafter and expired on October 31, 2020. On October 23, 2020, holders of a majority of the outstanding common stock of the Company approved the authorization of the Company’s Board of Directors to withdraw the Company’s election to be regulated as a BDC under the Investment Company Act of 1940, effective when the Company files the appropriate form with the SEC. The Company submitted the withdrawal to be effective with the SEC on December 31, 2020. The Parent Company’s wholly owned subsidiary, MRC TRS, Inc., (“TRS”) was incorporated under the general corporation laws of the State of California on February 22, 2016, and operates as a taxable REIT subsidiary. MacKenzie NY Real Estate 2 Corp., (“MacKenzie NY 2”), a wholly owned subsidiary of TRS, was formed for the purpose of making certain limited investments in New York companies. The financial statements of TRS and MacKenzie NY 2 have been consolidated with the Parent Company. On May 20, 2020, the Parent Company formed an operating partnership, MacKenzie Realty Operating Partnership, LP (the “Operating Partnership”) for the purpose of entering into a Contribution Agreement with a group of entities referred to as the Addison Group, owners of Addison Property Owner, LLC (“Property Owner”). The Parent Company owns 100% of the Class B Limited Partnership units of the Operating Partnership. Property Owner owns a property known as the Addison Corporate Center. On June 8, 2020, Addison Group exchanged its ownership in Property Owner for Class A Limited Partnership units of the Operating Partnership. Subsequent to the acquisition date, the Parent Company redeemed substantially all of the remaining Class A Limited Partnership units by issuing to each such Class A Limited Partner one share of the Company’s common stock for each Class A Unit. As a result, as of December 31, 2020, the Company owns substantially all of the Operating Partnership. Therefore, effective December 31, 2020, the financial statements of the Operating Partnership have been consolidated with the Parent Company. The operating activities of the Operating Partnership for the period of June 8, 2020, through December 31, 2020, have not been consolidated with the activities of the Company since the consolidation was effective December 31, 2020. As of June 30, 2021, there are 12,052.85 Class A units outstanding. In March 2021, the Company together with its joint venture partners formed two operating companies: Madison-PVT Partners LLC (“Madison”) and PVT-Madison Partners LLC (“PVT”), to acquire and operate two residential apartment buildings located in Oakland, California. The Company owns 98.45% and 98.75% of equity units of Madison and PVT, respectively. The joint venture partners own the remaining 1.55% and 1.25% equity units of Madison and PVT, respectively, and also hold a carried interest in both companies. The Company is the controlling majority owner of both companies; therefore, effective March 31, 2021, the Company has consolidated the financial statements of these companies. On April 13, 2021, the Company filed a preliminary offering circular pursuant to Regulation A with the SEC to sell up to $50,000,000 of shares of the Company’s Series A preferred stock at an initial offering price of $25.00 per share. The sale of shares pursuant to this offering will begin after the Offering Circular has been qualified by the SEC. The Company is externally managed by MacKenzie Capital Management, LP (“MacKenzie”) under the administration agreement dated and effective as of February 28, 2013 (the “Administration Agreement”). MacKenzie manages all Company affairs except for providing investment advice. MCM Advisers, LP (the “Investment Adviser”) advises the Company in the Company’s assessment, acquisition and divestiture of securities under the advisory agreement amended and restated effective January 1, 2021 (the “Amended and Restated Investment Advisory Agreement”). MacKenzie Real Estate Advisers, LP (the “Real Estate Adviser”; together, the “Investment Adviser” and the “Real Estate Adviser” may be referred to as “Adviser” or “Advisers” as appropriate) advises the Company in the Company’s assessment, acquisition and divestiture of real estate assets. The Company pursues a strategy focused on investing primarily in real estate assets, and to a smaller extent (intended to be less than 20% of our portfolio) in illiquid or non-traded debt and equity securities issued by U.S. companies generally owning commercial real estate. These companies are likely to be non-traded REITs, small-capitalization publicly traded REITs, public and private real estate limited partnerships and limited liability companies. As of June 30, 2021, the Company has raised approximately $130.46 million from the public offerings, including proceeds from the Company’s dividend reinvestment plan (“DRIP”) of approximately $11.36 million. Of the shares issued by the Company in exchange for the total capital raised as of June 30, 2021, approximately $9.87 million worth of shares have been repurchased under the Company’s share repurchase program. CHANGE IN STATUS Prior to the December 31, 2020 termination of the Company’s status as a BDC, the Company recorded its investment in real estate securities at fair value and recorded the changes in the fair value as an unrealized gain or loss. As a result of the termination of the Company’s status as a BDC, the Company is no longer subject to fair value accounting requirements. Nonetheless, the Company: will continue to recognize and measure its investments in non-publicly traded corporations and certain limited partnerships at fair value; will continue to recognize and measure its investments in publicly traded securities at fair value, using Level 1 fair value inputs with changes in fair value recorded in the statement of operations; and has elected the fair value option recognize and measure its investments in certain limited partnerships that otherwise would have been required to be recognized and measured using the equity method of accounting. As a result of the change in the Company’s status and applying the new basis of accounting as discussed in Note 2, on the effective date of the termination of the Company’s status as a BDC, the Company recorded the fair value of the investments as the new carrying value of the investments and recorded a carrying value adjustment as follows: December 31, 2020 Investment Type Original Carrying Value Adjustment Fair Value/ New Carrying Value Publicly Traded Companies $ 10,342,217 $ (2,710,814 ) $ 7,631,403 Non Traded Companies 41,610,397 (10,978,801 ) 30,631,596 LP Interests 37,554,454 657,849 38,212,303 Investment Trust 49,900 (15,910 ) 33,990 Total non-consolidated investments 89,556,968 (13,047,676 ) 76,509,292 The Operating Partnership (Consolidated) 16,103,020 (8,075,436 ) 8,027,584 Total $ 105,659,988 $ (21,123,112 ) $ 84,536,876 The Company also began presenting, on a consolidated basis, the underlying assets and liabilities of the Operating Partnership. The fair value of the Operating Partnership on the effective date of the termination of the Company’s status as a BDC was $8,027,584. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation Policy The accompanying consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-K and Regulation S-X. The Company follows the accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company’s wholly owned consolidated subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. Prior to the termination of its status as a BDC, the Company was an investment company under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 (“ASC 946”). Under the 1940 Act rules, regulations pursuant to Article 6 of Regulation S-X and ASC 946, the Company is precluded from consolidating portfolio company investments, including those in which the Company has a controlling interest, unless the portfolio company is an investment company. An exception to this general principle occurs if the Company owns a controlled operating company whose purpose is to provide services to the Company such as an investment adviser or transfer agent. None of the Company’s investments qualifies for this exception. Therefore, the Company’s portfolio company investments, including those in which the Company has a controlling interest, are carried on the consolidated statements of assets and liabilities at fair value with changes to fair value recognized as “Net unrealized gain (loss)” on the Consolidated Statements of Operations until the investment is realized, usually upon exit, resulting in any gain or loss on exit being recognized as a realized gain or loss. However, in the event that any controlled subsidiary exceeds the tests of significance set forth in Rules 3-09 or 4-08(g) of Regulation S-X, the Company will include required financial information for such subsidiary in the notes or as an attachment to its consolidated financial statements. As a result of the termination of the Company’s status as a BDC, the Company is no longer an investment company under ASC 946. The Company discontinued applying the guidance in ASC 946 and began to account for the change in status prospectively by accounting for its investments in accordance with other GAAP topics as of the date of the change in status. The Company’s consolidated financial statements for the period subsequent to the termination of its BDC status are prepared on a consolidated basis to include the financial position, results of operations, and cash flows of the Company and its wholly owned and majority-owned subsidiaries, rather than by the investment company fair valuation approach. This change in status and the application of new basis of accounting affect the comparability of the consolidated financial statements for directly presenting corresponding items for 2021 and 2020. As such, for the year ended June 30, 2021, the consolidated statements of operations, changes in net assets (referred as “equity” effective June 30, 2021) and cash flows have been presented in two separate statements: for the six months ended December 31, 2020 as they would be for an investment company (on a “predecessor basis”) and for the six months ended June 30, 2021 as it would be for a REIT (on a “successor basis”). For the years ended June 30, 2020 and 2019, the consolidated statements of operations, changes in net assets, and cash flows have been presented on the predecessor basis. The consolidated statement of assets and liabilities (referred as “balance sheet” effective June 30, 2021) at June 30, 2020 has been presented on the predecessor basis and the consolidated balance sheet at June 30, 2021, has been presented on the successor basis. Certain interim period information has been reclassified to conform to the current year end presentation. The reclassification has no effect on the Company's consolidated balance sheet or the consolidated statement of operations as previously reported. Use of Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect reported asset values, liabilities, revenues, expenses and unrealized gains (losses) on investments during the reporting period. Material estimates that are susceptible to change, and actual results could differ from those estimates. Variable Interest Entities The Company evaluates the need to consolidate its investments in securities in accordance with ASC Topic 810, Consolidation Cash and Restricted Cash The Company’s cash represent balances held in current bank accounts and restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, debt service and leasing costs held by lenders. These balances are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to certain limits. At times the cash balances held in financial institutions by the Company may exceed these insured limits. Investments Income Receivable Investments income receivable represent dividends, distributions, and sales proceeds recognized in accordance with our revenue recognition policy but not yet received as of the date of the consolidated financial statements. The amounts are generally fully collectible as they are recognized based on completed transactions. The Company monitors and adjusts its receivables, and those deemed to be uncollectible are written-off only after all reasonable collection efforts are exhausted. The Company has determined that all investments income receivable balances outstanding as of June 30, 2021 and 2020, are collectible and do not require recording any uncollectible allowance. Rents and Other Receivables The Company will periodically evaluate the collectability of amounts due from tenants and maintain an allowance for doubtful accounts for estimated losses resulting from the inability of tenants to make required payments under lease agreements. The Company exercises judgment in establishing these allowances and considers payment history and current credit status of tenants in developing these estimates. Capital Pending Acceptance The Company conducts closings for new purchases of the Company’s common stock twice per month and admits new stockholders effective beginning the first of each month. Subscriptions are effective only upon the Company's acceptance. Any gross proceeds received from subscriptions which are not accepted as of the period-end are classified as capital pending acceptance in the consolidated statements of assets and liabilities. As of June 30, 2021, there was no capital pending acceptance. As of June 30, 2020, capital pending acceptance was $87,739. Organization and Deferred Offering Costs Organization costs include, among other things, the cost of legal services pertaining to the organization and incorporation of the business, incorporation fees, and audit fees relating to public offerings and the initial statement of assets and liabilities. These costs are expensed as incurred. Offering costs include, among other things, legal fees and other costs pertaining to the preparation of the registration statements and pre- and post-effective amendments. While the Company was a BDC, offering costs were capitalized as deferred offering costs as incurred by the Company and subsequently amortized to expense over a twelve-month period. Any deferred offering costs that had not been amortized upon the expiration or earlier termination of an offering were accelerated and expensed upon such expiration or termination. Income Taxes and Deferred Tax Liability The Parent Company has elected to be treated as a REIT for tax purposes under the Code and as a REIT, is not subject to federal income taxes on amounts that it distributes to the stockholders, provided that, on an annual basis, it distributes at least 90% of its REIT taxable income to the stockholders and meets certain other conditions. To the extent that it satisfies the annual distribution requirement but distributes less than 100% of its taxable income, it is either subject to U.S. federal corporate income tax on its undistributed taxable income or 4% excise tax on catch-up distributions paid in the subsequent year. The Parent Company satisfied the annual dividend payment and other REIT requirements for the tax year ended December 31, 2020. Therefore, the Parent Company did not incur any tax expense or excise tax on its income from operations during the quarterly periods within the tax year 2020. Similarly, for the tax year 2021, we believe the Parent Company paid the requisite amounts of dividends during the year and met other REIT requirements such that it will not owe any income taxes. Therefore, the Parent Company did not record any income tax provisions during any fiscal periods within the tax year 2021. The income tax benefit of $13,348 in the consolidated statements of operation for the year ended June 30, 2019, relate to the Parent Company’s built-in gain tax adjustments. The built-in gain tax adjustment amounts are the differences between the actual and the estimated tax liabilities on the built-in gains realized during the year. Prior to the effective date of its REIT election, the Parent Company had net unrealized built-in gains of $239,595, for which the Parent Company recorded an estimated tax liability of $95,431 as of December 31, 2013. Accordingly, in each subsequent period, the Parent Company only recorded the difference between the actual and estimated tax on the built-in gains it realized during the year as income tax expense or benefit. All unrealized built-in gains after December 31, 2018 were not taxable as the five-year period following the REIT election date ended on December 31, 2018. Therefore, the remaining deferred tax liabilities of $13,348 on the unrealized built-in gains were reversed as income tax benefit during the year ended June 30, 2019. TRS and MacKenzie NY 2 are subject to corporate federal and state income tax on their taxable income at regular statutory rates. However, as of June 30, 2021, they did not have any taxable income for tax years 2020 or 2021. Therefore, TRS and MacKenzie NY 2 did not record any income tax provisions during any fiscal period within the tax year 2020 and 2021. The Operating Partnership is a limited partnership and its wholly owned subsidiary, the Property Owner, is a limited liability company and Madison and PVT are limited liability companies. Accordingly, all income tax liabilities of these entities flow through to their partners, which ultimately is the Company. Therefore, no income tax provisions are recorded for these entities. The Company and its subsidiaries follow ASC 740, Income Taxes, (“ASC 740”) to account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to the net unrealized investment gain (losses) on existing investments. In estimating future tax consequences, the Company considers all future events, other than enactments of changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period of enactment. In addition, ASC 740 provides guidance for recognizing, measuring, presenting, and disclosing uncertain tax positions in the consolidated financial statements. As of June 30, 2021 and 2020, there were no uncertain tax positions. Management’s determinations regarding ASC 740 are subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Subsequent Events Subsequent events are events or transactions that occur after the date of the consolidated statements of assets and liabilities but before the date the consolidated financial statements are available to be issued. Subsequent events that provide additional evidence about conditions that existed at the date of the consolidated statements of assets and liabilities are considered in the preparation of the consolidated financial statements presented herein. Subsequent events that occur after the date of the consolidated statements of assets and liabilities that do not provide evidence about the conditions that existed as of the date of the consolidated statements of net assets are considered for disclosure based upon their significance in relation to the Company's consolidated financial statements taken as a whole. Fair Value of Financial Instruments Fair value estimates are made at discrete points in time based on relevant information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. The Company believes that the carrying amounts of its financial instruments, consisting of cash, restricted cash, investments income, rent and other receivables, prepaid expenses and other assets, mortgage notes payable, accounts payable and accrued liabilities, below-market lease liabilities, net, deferred rent and other liabilities and due to related entities, approximate the fair values of such items. Revenue Recognition Realized gains or losses on investments are recognized in the period of disposal, distribution, or exchange and are measured by the difference between the proceeds from the sale or distribution and the cost basis (adjusted for return of capital, if any) of the investment. Investments are disposed of on a first-in, first-out basis. Operational dividends or distributions received from portfolio investments are recorded as investment income. Distributions resulting from the sale or refinance of an investee’s underlying assets are evaluated by management and recorded as either investment income or as a reduction of cost basis (return of capital). Management determines the estimated fair value of the investment after the sale or refinance and compares this estimate to the adjusted cost basis of the investment. If the estimated fair value is higher than the adjusted cost basis, distributions are recorded as investment income. If the estimated fair value is lower than the adjusted cost basis, distributions are first recorded as return of capital to reduce the cost basis down to the estimated fair value. Distributions in excess of those recorded as return of capital are recorded as investment income. The Company recognizes minimum rent, including rental abatements, lease incentives, and contractual fixed increases attributable to operating leases on a straight-line basis over the term of the related leases when collectability is probable. The Company records amounts expected to be received in later years as deferred rent receivable. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that can be taken in the form of cash or a credit against the tenant’s rent) that is funded is treated as a lease incentive and amortized as a reduction of rental revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the lessee or lessor supervises the construction and bears the risk of cost overruns; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. The Company recognizes rental revenue, net of concessions, on a straight-line basis over the term of the lease, when collectability is determined to be probable. In accordance with Topic 842, the Company determines whether collectability of lease payments in an operating lease is probable. If the Company determines the lease payments are not probable of collection, the Company fully reserves for rent and reimbursement receivables, including deferred rent receivable, and recognizes rental income on cash basis. Dividends and Distributions Dividends (and distributions, if any) to common stockholders are recorded on the date of declaration. The amount, if any, to be paid as a quarterly dividend (or distribution, if any) is approved quarterly by the Board of Directors and is generally based upon management's estimate of the Company's earnings for the quarter. Recent Accounting Pronouncements: In August 2018, the FASB issued guidance which changes the fair value disclosure requirements. The new guidance includes new, eliminated and modified fair value disclosures. Among other requirements, the guidance requires disclosure of the range and weighted average of the significant unobservable inputs for Level 3 fair value measurements and the way they are calculated. The guidance also eliminated the following disclosures: (1) amount and reason for transfers between Level I and Level II, (2) policy for timing of transfers between levels of the fair value hierarchy and (3) valuation processes for Level 3 fair value measurement. The guidance was adopted and did not have a material effect on the Company’s consolidated financial statements. In May 2020, the SEC adopted rules Release No. 33-10786 (the "SEC Release"), Amendments to Financial Disclosures about Acquired and Disposed Businesses Valuation of Investments The Company's consolidated financial statements include investments that are measured at their estimated fair values in accordance with GAAP. A fair value measurement represents the price at which an orderly transaction would occur between willing market participants at the measurement date. The Company develops fair values for investments based on available inputs which could include pricing that is observed in the marketplace. Examples of market information that the Company attempts to obtain include the following: • Recently quoted trading prices for the same or similar securities; • Recent purchase prices paid for the same or similar securities; • Recent sale prices received for the same or similar securities; • Relevant reports issued by industry analysts and publications; and • Other relevant observable and unobservable inputs, including liquidity discounts. After considering all available indications of the appropriate rate of return that market participants would require, the Company considers the reasonableness of the range indicated by the results to determine an estimate that, in its opinion, is most representative of fair value. The real estate securities in which the Company invests are, due to the absence of an efficient market, generally illiquid. Establishing fair values for illiquid investments is inherently subjective and is often dependent upon significant estimates and modeling assumptions. If either the volume and/or level of trading activity for an investment has significantly changed from normal market conditions, or price quotations or observable inputs are not associated with orderly transactions, the market inputs used might not be relevant. For example, recently quoted trading prices might not be relevant if a ready market does not exist for the quantity of investments that the Company may wish to sell. In circumstances where relevant market inputs cannot be obtained, increased analysis and management judgment are required to estimate fair value. This generally requires the Company to establish the use of internal assumptions about future cash flows, including the cash flows of underlying real property, and appropriate risk-adjusted discount rates. Regardless of the valuation inputs used, the objective of fair value measurement is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price. The Company is under no compulsion to dispose of its investments, and expects to hold them for a substantial period of time. Therefore, estimated values as determined above may not reflect amounts that could be realized upon actual sale at a future date. Fair Value Measurements GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observables used in measuring investments at fair value. Market price is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available actively quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observables and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following categories: Level I – Quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level I are publicly traded equity securities. The Company does not adjust the quoted price for these investments even in situations where the Company holds a large position and a sale could reasonably impact the quoted price. Level II – Price inputs are quoted prices for similar financial instruments in active markets; quoted prices for identical or similar financial instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. Investments which are generally included in this category are publicly traded equity securities with restrictions. Level III – Pricing inputs are unobservable and include situations where there is little, if any, market activity for the investment. Fair values for these investments are estimated by management using valuation methodologies that consider a range of factors, including but not limited to the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public exchanges for comparable securities, current and projected operating performance, financial condition, and financing transactions subsequent to the acquisition of the investment. The inputs into the determination of fair value require significant judgment by management. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had an active market for these investments existed. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Management's assessment of the significance of a particular input to the fair value measurement, in its entirety, requires judgment and considers factors specific to the investment. Equity Securities The Company has equity investments in various limited partnerships and non-traded entities, which do not have readily determinable fair values. The Company does not have controlling interests in these entities. Thus, these investments have been recorded as investments in equity securities in accordance with ASC Topic 321, Investments – Equity Securities Equity Method Investments with Fair Value Option Election The Company elected the fair value option of accounting for the investments listed below that would have otherwise been recorded under the equity method of accounting. The primary purpose of electing the fair value option was to enhance the transparency of the Company’s financial condition. Changes in the fair value of these investments, which are inclusive of equity in income, are recorded in the consolidated statement of operations during the period such changes occur. The below list of investments would have been accounted for under the equity method if the fair value method had not been elected and have been included in investments, at fair value and unconsolidated investments (non-securities), at fair value in the consolidated balance sheet as of June 30, 2021: Investee Legal Form Asset Type % Ownership Fair Value as of FSP Satellite Place Corporation Non Traded Company 35.60 % $ 2,867,911 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % 30,574 Bishop Berkeley, LLC Limited Liability Company LP Interest 69.03 % 5,142,164 BP3 Affiliate, LLC Limited Liability Company LP Interest 12.51 % 1,668,000 Britannia Preferred Members, LLC - Class 1 Limited Liability Company LP Interest 26.99 % 6,448,000 Britannia Preferred Members, LLC - Class 2 Limited Liability Company LP Interest 40.28 % 5,891,945 Capitol Hill Partners, LLC Limited Liability Company LP Interest 25.93 % 1,007,000 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % 5,000,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % 11,449,296 Lakemont Partners, LLC Limited Liability Company LP Interest 17.02 % 817,770 Secured Income L.P. Limited Partnership LP Interest 6.57 % 267,734 Total $ 40,590,394 Unconsolidated investments (non-securities) at Fair Value These are equity method investments that are majority owned subsidiaries of the Company, but do not meet the consolidation requirements under ASC topic 810. Under the Investment Company Act of 1940, as majority owned subsidiaries, these investments are considered “voting securities” as opposed to “investment securities.” Therefore, the Company listed these equity method investments at fair value separately from rest of the equity method investments at fair value in the consolidated balance sheet. As of June 30, 2021, the Company’s investments in Bishop Berkeley, LLC, Britannia Preferred Members, LLC - Class 1 and Class 2, and Dimensions 28, LLP were considered to be voting securities under the 1940 Act and therefore, were shown as unconsolidated investments (non-securities), at fair value in the consolidated balance sheet. For GAAP purposes, these investments have been recorded under the equity method investments, for which the Company has elected the fair value option as discussed above. Adoption of Lease Accounting Topic 842 In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). Under ASU 2016-02, an entity is required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor, and parties to sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to facilitate assessment the amount, timing, and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” (“ASU 2018-11”). ASU 2018-11 provides lessors with a practical expedient to not separate lease and non-lease components if both (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease. The Company adopted the practical expedient as of July 1, 2019, to account for lease and non-lease components as a single component in lease contracts where the Company or one of its subsidiaries is the lessor. The Company’s current portfolio consists of commercial office properties and residential apartment buildings whereby the Company generates rental revenue by leasing office space and apartment units to the building’s tenants. These tenant leases fall under the scope of Topic 842, and are classified as operating leases. Revenues from such leases are recognized on a straight-line basis over the terms of the lease agreements. Non-lease components of the Company’s leases are combined with the related lease components and accounted for as a single lease component under Topic 842. The balances of net real estate investments and related depreciation on the Company’s consolidated financial statements relate to assets for which the Company is the lessor. Real Estate Assets, Capital Additions, Depreciation and Amortization The Company capitalizes costs, including certain indirect costs, incurred for capital additions, including redevelopment, development, and construction projects. The Company also allocates certain department costs, including payroll, at the corporate levels as “indirect costs” of capital additions, if such costs clearly relate to capital additions. The Company also capitalizes interest, property taxes and insurance during periods in which redevelopment, development, and construction projects are in progress. Cost capitalization begins once the development or construction activity commences and ceases when the asset is ready for its intended use. Repair and maintenance and tenant turnover costs are expensed as incurred. Repair and maintenance and tenant turnover costs include all costs that do not extend the useful life of the real estate asset. Depreciation and amortization expense are computed on the straight-line method over the asset’s estimated useful life. The Company considers the period of future benefit of an asset to determine its appropriate useful life and anticipates the estimated useful lives of assets by class to be generally as follows: Buildings 16 – 45 years Building improvements 5 – 15 years Land improvements 5 – 15 years Furniture, fixtures and equipment 3 – 7 years In-place leases 1 – 10 years Real Estate Purchase Price Allocations In accordance with the guidance for business combinations, upon the acquisition of real estate properties, the Company evaluates whether the transaction is a business combination or an asset acquisition. If the transaction does not meet the definition of a business combination, the Company records the assets acquired, the liabilities assumed, and any non-controlling interest as of the acquisition date, measured at their relative fair values. Acquisition-related costs are capitalized in the period incurred and are added to the components of the real estate assets acquired. The Company assesses the acquisition-date fair values of all tangible assets, identifiable intangible assets, and assumed liabilities using methods similar to those used by independent appraisers (e.g., discounted cash flow analysis) and that utilize appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on several factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it was vacant. Intangible assets include the value of in-place leases, which are classified as operating leases and represents the estimated fair value of the net cash flows of leases in place at the time of acquisition, as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up. The Company amortizes the value of in-place leases to expense over the remaining non-cancelable term of the respective leases, which is on average five years. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, prevailing interest rates, and the number of years the property will be held for investment. The use of inappropriate assumptions could result in an incorrect valuation of acquired tangible assets, identifiable intangible assets, and assumed liabilities, which could impact the amount of the Company’s net income (loss). Differences in the amount attributed to the fair value estimate of the various assets acquired can be significant based upon the assumptions made in calculating these estimates. I |
INVESTMENTS IN REAL ESTATE ASSE
INVESTMENTS IN REAL ESTATE ASSETS | 12 Months Ended |
Jun. 30, 2021 | |
INVESTMENTS IN REAL ESTATE ASSETS [Abstract] | |
INVESTMENTS IN REAL ESTATE ASSETS | NOTE 3 – INVESTMENTS IN REAL ESTATE ASSETS The following table provides summary information regarding the Company’s operating properties, which are owned through the Company’s subsidiaries; Operating Partnership, Madison and PVT: Consolidated Operating Properties Property Name: Addison Corporate Center Commodore Apartments Pon de Leo Apartments Property Owner: The Operating Partnership Madison-PVT Partners LLC PVT-Madison Partners LLC Location: Windsor, CT Oakland, CA Oakland, CA Number of Tenants: 6 48 39 Year Built: 1980 1912 1929 Ownership Interest: 100% 100% 100% The following table summarizes the assets acquired and liabilities assumed at the acquisition date for the Operating Partnership’s acquisition of Property Owner on June 8, 2020: Purchase Price Allocation June 8, 2020 Land $ 7,814,670 Building 19,761,048 Building and tenant improvements 4,553,356 Intangible lease assets 6,580,926 Other current assets 3,872,238 Total assets acquired $ 42,582,238 Mortgages assumed` $ 24,404,257 Other current liabilities 1,647,965 Total liabilities assumed 26,052,222 Fair value of equity interests $ 16,530,016 As discussed in Note 1, the Company began presenting, on a consolidated basis, the underlying assets and liabilities of the Operating Partnership as of December 31, 2020. The Company’s carrying value of the Operating Partnership was the fair value on the effective date of the change in status, which was $8,027,584; however, the net asset value of the Company’s interest in the Operating Partnership as of the that date was $14,308,182. Therefore, during consolidation the Company recorded a carrying value adjustment of $6,332,745 on all of the Operating Partnership’s long-lived assets proportionately based on the relative carrying values at December 31, 2020, immediately prior to the termination of BDC status as shown in the following table: Carrying Value Before Adjustment Adjustment Adjusted Carrying Value Land $ 7,814,670 $ 1,358,055 $ 6,456,615 Building 19,040,593 3,308,926 15,731,667 Building and tenant improvements 3,986,945 692,862 3,294,083 Intangible lease assets: Lease in place 4,237,905 736,475 3,501,430 Leasing commissions 782,349 120,558 661,791 Leaseholds (above market) 541,822 94,159 447,663 Leasehold improvements 99,599 17,308 82,291 Other intangibles 25,333 4,402 20,931 $ 36,529,216 $ 6,332,745 $ 30,196,471 The following table presents the allocation of real estate assets acquired and liabilities assumed during the six months ended June 30, 2021. Both acquisitions were considered asset acquisitions for accounting purposes. Property Name: Commodore Apartments Pon de Leo Apartments Purchase Price Allocation Land $ 5,519,963 $ 4,317,013 Building 6,513,902 10,818,957 Building and tenant improvements 144,384 185,924 Furniture, Fixtures & Equipment 830,429 746,368 Intangible lease assets 190,219 209,479 Net leasehold asset (liability) (485,544 ) (451,908 ) Total consideration paid for acquired real estate investments, net of liabilities assumed $ 12,713,353 $ 15,825,833 Operating Leases: The Company’s real estate assets are leased to tenants under operating leases that contain varying terms and expirations. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. The Company retains substantially all the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company does not require a security deposit from tenants on its commercial real estate properties, depending upon the terms of the respective leases and the creditworthiness of the tenants, but security deposits generally are not individually significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of the security deposit. Security deposits received in cash related to tenant leases are included in other accrued liabilities in the accompanying consolidated balance sheet and were immaterial as of June 30, 2021. The following table presents the components of income from real estate operations for the six months ended June 30, 2021: Lease Income- Operating leases $ 3,141,111 Variable lease income (1) 604,004 $ 3,745,115 (1) Primarily includes tenant reimbursements for utilities and common area maintenance. As of June 30, 2021, the future minimum rental income from the Company’s real estate properties under non-cancelable operating leases are as follows: Year ended June 30,: Rental Income 2022 $ 5,351,154 2023 3,154,883 2024 2,976,158 2025 3,051,039 2026 2,161,240 Thereafter 4,758,268 Total $ 21,452,742 Lease Intangibles, Above-Market Lease Assets and Below-Market Lease Liabilities, Net As of June 30, 2021, the Company’s acquired lease intangibles, above-market lease assets and below-market lease liabilities, were as follows: Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Cost $ 5,141,279 $ 447,663 $ 937,452 Accumulated amortization (1,086,485 ) (63,952 ) (99,139 ) Total $ 4,054,794 $ 383,711 $ 838,313 Weighted average amortization period (years) 3.1 3.5 3.4 The Company’s amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the six months ended June 30, 2021, were as follows Six Months Ended June 30, 2021 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 1,086,486 $ 63,952 $ (99,139 ) The following table provides the projected amortization expense and adjustments to revenue from tenants for intangible assets and liabilities for the next five years: Year Ended June 30, : 2022 2023 2024 2025 2026 In-place leases, to be included in amortization $ 1,414,305 $ 1,425,147 $ 833,535 $ 69,243 $ 69,243 Above-market lease intangibles $ 127,904 $ 127,904 $ 127,904 $ - $ - Below-market lease liabilities (286,908 ) (267,695 ) (217,763 ) (65,947 ) - Total to be included in revenue from tenants $ (159,004 ) $ (139,791 ) $ (89,859 ) $ (65,947 ) $ - |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Jun. 30, 2021 | |
INVESTMENTS [Abstract] | |
INVESTMENTS | NOTE 4 – INVESTMENTS The following table summarizes the composition of the Company's equity method investments with fair value option election and other equity securities at fair value as of June 30, 2021 (successor basis): Asset Type Fair Value Publicly Traded Companies $ 169,200 Non Traded Companies 29,426,441 Non Traded Company (Equity method investment with fair value option election) 2,867,911 LP Interests 288,494 LP Interests (Equity method investment with fair value option election) 37,722,483 Investment Trust 34,714 Total $ 70,509,243 The following table summarizes the composition of the Company's investments at cost and fair value as of June 30, 2020 (predecessor basis): June 30, 2020 Asset Type Cost Fair Value Publicly Traded Companies $ 8,454,348 $ 7,244,654 Non Traded Companies 42,474,614 32,808,076 LP Interests 53,713,785 53,618,425 Investment Trust 49,901 33,990 Total $ 104,692,648 $ 93,705,145 The following table presents fair value measurements of the Company's investments measured at fair value on a recurring basis as of June 30, 2021, according to the fair value hierarchy (successor basis): Asset Type Total Level I Level II Level III Publicly Traded Companies $ 169,200 $ 169,200 $ - $ - Non Traded Companies 32,294,352 - - 32,294,352 LP Interests 38,010,977 - - 38,010,977 Investment Trust 34,714 - - 34,714 Total $ 70,509,243 $ 169,200 $ - $ 70,340,043 The following table presents fair value measurements of the Company's investments measured at fair value on a recurring basis as of June 30, 2020, according to the fair value hierarchy (predecessor basis): Asset Type Total Level I Level II Level III Publicly Traded Companies $ 7,244,654 $ 7,244,654 $ - $ - Non Traded Companies 32,808,076 - - 32,808,076 LP Interests 53,618,425 - - 53,618,425 Investment Trust 33,990 - - 33,990 Total $ 93,705,145 $ 7,244,654 $ - $ 86,460,491 The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the six months ended June 30, 2021 (successor basis): Balance at December 31, 2020 $ 68,877,889 Purchases of investments 8,830,765 Transfers to Level I (229,879 ) Proceeds from sales, net (1,922,780 ) Return of capital distributions (6,001,052 ) Net realized losses (160,108 ) Net unrealized gains 945,208 Ending balance at June 30, 2021 $ 70,340,043 The transfers of $229,879 from Level III to Level I category during the six months ended June 30, 2021 resulted from one of the Company's investments converting from a non-traded REIT to publicly traded REIT. Transfers are assumed to have occurred at the beginning of the period. For the six months ended June 30, 2021, changes in unrealized gains, net included in earnings relating to Level III investments still held at June 30, 2021 were $945,208. The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the six months ended December 31, 2020 (predecessor basis): Balance at July 1, 2020 $ 86,460,491 Purchases of investments 13,448,477 Transfers to Level I (1,900,470 ) Consolidation of the Operating Partnership (Note 1) (8,027,584 ) Proceeds from sales, net (1,011,748 ) Return of capital (11,486,835 ) Net realized gains 30,050 Net unrealized losses (8,634,492 ) Ending balance at December 31, 2020 $ 68,877,889 The transfers of $1,900,470 from Level III to Level I category during the six months ended December 31, 2020 resulted from one of the Company's investments converting from a non-traded REIT to publicly traded REIT. Transfers are assumed to have occurred at the beginning of the period. For the six months ended December 31, 2020, changes in unrealized losses, net included in earnings relating to Level III investments still held at December 31, 2020 were $1,836,915. The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the year ended June 30, 2020 (predecessor basis): Balance at July 1, 2019 $ 101,094,142 Purchases of investments 35,586,486 Proceeds from sales, net (3,639,699 ) Return of capital (31,368,114 ) Net realized gains 608,053 Net unrealized losses (15,820,377 ) Ending balance at June 30, 2020 $ 86,460,491 For the year ended June 30, 2020, changes in unrealized losses, net included in earnings relating to Level III investments still held at June 30, 2020 were $12,445,631. The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2021 (successor basis): Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Company $ 2,867,911 Direct Capitalization Method Capitalization rate 7.9 % Liquidity discount 32.0 % Non Traded Companies 66,337 Estimated Liquidation Value Sponsor provided value Liquidity discount 2.0% - 67.0 % 53.6 % Bankruptcy filing Non Traded Companies 29,360,104 Market Activity Secondary market industry publication Underlying property sales contract Acquisition cost LP Interests 19,717,495 Direct Capitalization Method Capitalization rate 3.5% - 7.5 % 5.8 % Liquidity discount 20.0% - 33.0 % 20.9 % LP Interests 11,448,000 Discounted Cash Flow Discount rate 9.0% - 20.0 % 13.2 % Discount term (months) 24 LP Interests 6,845,482 Estimated Liquidation Value Sponsor provided value Underlying property sales contract Liquidity discount 5.0% - 46.19 % 16.1 % Appraisal Investment Trust 34,714 Direct Capitalization Method Capitalization rate 6.0 % Liquidity discount 33.0 % $ 70,340,043 The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2020 (predecessor basis): Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Companies $ 541,858 Direct Capitalization Method Capitalization rate 6.5% - 7.6 % 7.5 % Liquidity discount 32.0% - 35.0 % 32.1 % Non Traded Companies 65,856 Estimated Liquidation Value Sponsor provided value Liquidity discount 12.0% - 78.0 % 45.1 % Non Traded Companies 32,200,362 Market Activity Secondary market industry publication Liquidity discount * 7.5% - 12.5 % 7.6 % LP Interests 24,974,379 Direct Capitalization Method Capitalization rate 3.4% - 6.8 % 5.2 % Liquidity discount 5.0% - 40.0 % 15.5 % LP Interests 14,976,861 Discounted Cash Flow Discount rate 9.0% - 20.0 % 11.6 % Discount term (months) 6.0 - 9.0 7.1 LP Interests 11,724,322 Estimated Liquidation Value Sponsor provided value Underlying property sales contract Underlying property appraisal Liquidity discount 19.0% - 43.0 % 41.5 % LP Interests 1,942,863 Market Activity Underlying security sales contract Secondary market industry publication Contributed capital Investment Trust 33,990 Market Activity Underlying security sales contract $ 86,460,491 * In the past years, the Company valued Level III investments primarily by reference to secondary market activities. However, due to the COVID-19 pandemic, secondary market activities significantly declined during the second quarter of 2020. While the most active of these securities had transactions reported based on new COVID-19 occupancy and financial information, two of the Level III investments only had earlier reported transactions. Therefore, to determine the fair values of these non-traded securities as of Impact of COVID-19 Pandemic The COVID-19 pandemic has adversely impacted the fair value of our investments as of June 30, 2021 and June 30, 2020, and the values assigned as of this date may differ materially from the values that we may ultimately realize with respect to our investments. The impact of the COVID-19 pandemic may not yet be fully reflected in the valuation of our investments as our valuations, and particularly valuations of private investments and private companies, are inherently uncertain, may fluctuate over short periods of time and are often based on estimates, comparisons and qualitative evaluations of private information that is often from a time period earlier, generally two to three months, than the quarter for which we are reporting. Additionally, we may not have yet received information or certifications from our portfolio companies that indicate any or the full extent of declining performance or non-compliance with debt covenants, as applicable, as a result of the COVID-19 pandemic. As a result, our valuations at June 30, 2021 and 2020, may not show the complete or continuing impact of the COVID-19 pandemic and the resulting measures taken in response thereto. Accordingly, we may continue to incur additional net unrealized losses or may incur realized losses subsequent to June 30, 2021, which could have a material adverse effect on our business, financial condition and results of operations. Summarized or Separate Audited Financial Statements for Equity Method Investments (Fair Value Option) Our investments in securities are generally in small and mid-sized companies in a variety of industries. In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, we must determine which of our equity method investments measured at fair value under the Fair Value Option are considered “significant,” if any. Regulation S-X mandates the use of three different tests to determine if any of our investments are considered significant investments: the investment test, the asset test, and the income test. Rule 3-09 of Regulation S-X requires separate audited financial statements for any significant equity method investments in an annual report if any of the three tests exceed 20%. Rule 4-08(g) of Regulation S-X requires summarized financial information in an annual report if any of the three tests exceeds 10%. For interim reporting, under SEC Rule 10-01(b)(1), the investment and income tests prescribed under Rule 3-09 should be applied to all of our equity method investments measured at fair value under the Fair Value Option and if either of the two tests exceed 20%, -13, to file quarterly financial information with the SEC if it were a registrant. In addition to the SEC rules, ASC 323-10-50-3(c) requires summarized financial statements of its equity method investments, including those reported under the fair value option, if they are material individually or in aggregate. The Company’s equity method investments accounted under the fair value option were material in aggregate as of June 30, 2021. The aggregated summarized financial information of the investees are as follows: Total Assets $ 230,663,168 Total Liabilities $ 145,077,360 Total Equities $ 85,585,809 Total Revenues $ 11,641,169 Total Expenses $ 10,880,536 Total Net Income $ 760,632 Unconsolidated Significant Subsidiaries In accordance with SEC Rules 3-09 and 4-08(g) of Regulation S-X, we must determine which of our investments in securities are considered “significant subsidiaries,” if any. Regulation S-X mandates the use of three different tests to determine if any of our controlled investments are significant subsidiaries: the investment test, the asset test, and the income test. Rule 3-09 of Regulation S-X requires separate audited financial statements for any unconsolidated majority-owned subsidiary in an annual report if any of the three tests exceed 20%. Rule 4-08(g) of Regulation S-X requires summarized financial information in an annual report if any of the three tests exceeds 10%. As of June 30, 2021, none of our investments were considered a significant subsidiary under both SEC rules. As of June 30, 2020, one of our investments, the Operating Partnership, was determined to be a significant subsidiary under the asset test as the Operating Partnership’s total assets exceeded 20% of the Company’s total assets as of June 30, 2020. Under the Rule 3-09, separate audited financial statements were required to be included in the Company’s annual report for the fiscal year ended June 30, 2021. However, as discussed in Note 1, in connection with the termination of the Company’s status as a BDC, the Operating Partnership was consolidated with the Company as of December 31, 2020. Therefore, separate audited financial statements of this partnership are no longer required in the Company’s annual report for the year ended June 30, 2021. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Jun. 30, 2021 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 5 – VARIABLE INTEREST ENTITIES A variable interest in a variable interest entity (VIE) is an investment or other interest that will absorb portions of the VIE’s expected losses and/or receive portions of the VIE’s expected residual returns. The Company’s variable interests in VIEs include limited partnership interests. VIEs sometimes finance the purchase of assets by issuing limited partnership interests that are either collateralized by or indexed to the assets held by the VIE. The enterprise with a controlling financial interest in a VIE is known as the primary beneficiary and consolidates the VIE. The Company determines whether it is the primary beneficiary of a VIE by performing an analysis that principally considers: (a) which variable interest holder has the power to direct activities of the VIE that most significantly impact the VIE’s economic performance; (b) which variable interest holder has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE; (c) the VIE’s purpose and design, including the risks the VIE was designed to create and pass through to its variable interest holders; (d) the VIE’s capital structure; (e) the terms between the VIE and its variable interest holders and other parties involved with the VIE; and (f) related-party relationships. The Company reassesses its evaluation of whether an entity is a VIE when certain reconsideration events occur. The Company reassesses its determination of whether it is the primary beneficiary of a VIE on an ongoing basis based on current facts and circumstances. Nonconsolidated VIEs As of June 30, 2021, thirteen of the Company’s unconsolidated VIEs include interests in limited partnerships and limited liability companies. The Company has determined that it is not the primary beneficiary of these entities because the managing partner or member of each of these entities has the power to direct the activities that most significantly affect the VIE’s economic performance. Accordingly, these VIEs have not been consolidated with the Company, and they have been reported as investments in limited partnerships recorded at fair value in the June 30, 2021, consolidated balance sheet. The table below presents a summary of the nonconsolidated VIEs in which the Company holds variable interests. Total Nonconsolidated VIEs As of June 30, 2021 Fair value of investments in VIEs $ 38,006,233 Carrying value of variable interests - assets $ 38,529,875 Carrying value of variable interests - liabilities $ - Maximum Exposure to Loss: Limited Partnership Interest $ 38,529,875 The Company’s exposure to the obligations of VIEs is generally limited to the carrying value of the limited partnership interests in these entities. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 6 – RELATED PARTY TRANSACTIONS Advisory Agreements Effective Through December 31, 2020: Under the Amended and Restated Investment Advisory Agreement, the Company will pay the Adviser a fee for its services consisting of three components - a portfolio structuring fee, a base management fee, and a subordinated incentive fee. The portfolio structuring fee is for the Adviser's initial work performed in identifying, evaluating and structuring the acquisition of assets. The fee equals 3.0% of the gross invested capital (“Gross Invested Capital”), which equals the number of shares issued, multiplied by the offering price of the shares sold ($10.00, regardless of whether or not shares were issued with volume or commission discounts), plus any borrowed funds. These services are performed on an ongoing basis in anticipation of deploying new capital, generally within 15 days of the receipt of capital. Therefore, this fee is expensed in the period the capital is accepted. The base management fee is calculated based on the Company's Gross Invested Capital plus any borrowing for investment purposes. The base management fees range from 1.5% to 3.0%, depending on the level of Gross Invested Capital. The subordinated incentive fee has two parts—income and capital gains. The incentive fee components (other than during liquidation) are designed so that neither the income incentive fee nor the capital gains incentive fee is payable to the Adviser unless our stockholders have first received dividends at a rate of at least 7.0% per annum for the relevant measurement period (a fiscal quarter, for the income incentive fee; a fiscal year, for the capital gains incentive fee). The income incentive fee (the “Income Fee”) is calculated and payable quarterly in arrears as follows: (i) the sum of preliminary net investment income for each fiscal quarter since the effective date of the Amended and Restated Investment Advisory Agreement (October 1, 2017) exceeding 7% of the “Contributed Capital” (which equals the number of shares issued multiplied by the maximum public offering price at the time such shares were sold, regardless of whether or not shares were issued with volume or commission discounts or through the DRIP, as such amount is computed from time to time) on an annualized basis up to 8.75% of Contributed Capital; and (ii) 20.0% of our preliminary net investment income for each fiscal quarter after the effective date exceeding 8.75% of Contributed Capital at an annualized rate; minus (iii) the sum of all previously paid income incentive fees since the effective date, plus (iv) any incremental income incentive fee payable resulting from the reanalysis after calculation of the capital gains incentive fee. The capital gains incentive fee (the “Capital Gains Fee”) is calculated and payable in arrears as of the end of each fiscal year as follows: (i) the sum of all "capital gains" (calculated as net realized capital gains less unrealized capital depreciation) for each fiscal year after the effective date exceeding 7% of the Contributed Capital on an annualized basis up to 8.75% of Contributed Capital, which thresholds are reduced by (but not below zero) the cumulative preliminary net investment income for each fiscal quarter since the effective date (or, increased, in the case of negative cumulative preliminary net investment income); and (ii) 20.0% of all capital gains for each fiscal quarter after the effective date exceeding 8.75% of Contributed Capital at an annualized rate, which threshold is reduced by (but not below zero) the cumulative preliminary net investment income for each fiscal quarter since the effective date (or, increased, in the case of negative cumulative preliminary net investment income); minus (iii) the sum of all previously paid income incentive fees since the effective date and prior to the end of such fiscal year; less (iv) the aggregate amount of all capital gains incentive fees paid in prior fiscal years ending after the effective date. To the extent that such calculation would result in a capital gains incentive fee that exceeds 20% of all realized capital gains for the measurement period, the capital gains incentive fee shall be capped so that under no circumstance does it exceed 20% of the realized capital gains for the measurement period. Advisory Agreements Effective January 1, 2021: As discussed in Note 1, on January 26, 2021, the Board of Directors of the Company approved, effective January 1, 2021, two advisory agreements, an Advisory Management Agreement with the Real Estate Adviser and the Amended and Restated Investment Advisory Agreement with the Investment Adviser. The terms of the Advisory Management Agreement with the Real Estate Adviser provide that the Company will continue to pay an Asset Management Fee on essentially the same terms as it was paying the Investment Adviser prior to 2021, namely based upon a percentage of Invested Capital (3% of the first $20 million, 2% of the next $80 million, and 1.5% over $100 million). Invested Capital is equal to the amount calculated by multiplying the total number of outstanding Shares, Preferred Shares, and Partnership Units issued by the Company by the price paid for each or the value ascribed to each in connection with their issuance. The Advisory Management Agreement also provides for a 2.5% Acquisition Fee on new (non-security) purchases, subject to certain limitations designed to eliminate incentives to “churn” Company assets. The new Advisory Management Agreement also provides for an incentive management fee that is equal to 15% of all distributions once shareholders have received cumulative distributions equal to 6% from the effective date of the Agreement. The Company will not pay any Property Management Fees, Debt Financing Fees, or Disposition Fees to the Real Estate Adviser. The Investment Adviser will receive an annual fee equal to $100 for providing the investment advice to the Company as to its securities portfolio under the Amended and Restated Investment Advisory Agreement. During the six months ended June 30, 2021, the Company incurred the asset management fees of $1,354,323 and asset acquisition fees of $343,750 under the new advisory agreement with the Real Estate Adviser. The asset acquisition fees were paid on the real estate acquisitions of Madison and PVT. During the six months ended December 31, 2020, the Company incurred the base management fees of $1,335,376 and portfolio structuring fees of $6,679 under the previous advisory agreement with the Investment Adviser. During the years ended June 30, 2020 and 2019, the Company incurred base management fees of $2,549,076 and $2,206,227, respectively, and portfolio structuring fees of $588,203 and $707,589, respectively, under the previous advisory agreement with the Investment Adviser. The asset management and base management fees mentioned above were based on the following quarter ended Invested Capital segregated in two columns based on the annual fee rate: Asset/Base Management Fee Annual % 3.0% 2.0% 1.5% Total Invested Capital For the Year Ended June 30, 2021 Quarter ended: September 30, 2020 $ 20,000,000 $ 80,000,000 $ 28,769,486 $ 128,769,486 December 31, 2020 20,000,000 80,000,000 33,997,317 133,997,317 March 31, 2021 20,000,000 80,000,000 34,120,859 134,120,859 June 30, 2021 20,000,000 80,000,000 33,648,965 133,648,965 For the Year Ended June 30, 2020 Quarter ended: September 30, 2019 $ 20,000,000 $ 80,000,000 $ 15,998,789 $ 115,998,789 December 31, 2019 20,000,000 80,000,000 21,409,289 121,409,289 March 30, 2020 20,000,000 80,000,000 27,070,974 127,070,974 June 30, 2020 20,000,000 80,000,000 28,607,752 128,607,752 For the Year Ended June 30, 2019 Quarter ended: September 30, 2018 $ 20,000,000 $ 72,435,844 $ - $ 92,435,844 December 31, 2018 20,000,000 78,322,307 - 98,322,307 March 31, 2019 20,000,000 80,000,000 4,719,872 104,719,872 June 30, 2019 20,000,000 80,000,000 9,263,200 109,263,200 During the six months ended June 30, 2021, the Company did not incur or accrue any incentive management fee under the new Advisory Management Agreement. Similarly, the Company did not accrue Income Fee or Capital Gains Fee for the six months ended December 31, 2020, under the previous advisory agreement with the Investment Advisor. For the year ended June 30, 2020, the Company neither incurred the Capital Gains Fee nor the Income Fee. For the year ended June 30, 2019, the Company incurred $1,789,870 of the Capital Gains Fee; however, did not incur the Income Fee. Organization and Offering Costs Reimbursement: As provided in the previous advisory agreement with the Investment Adviser and the prospectus of the Company, offering costs incurred and paid by the Company in excess of $1,650,000 on the third public offering were reimbursed by the Investment Adviser except to the extent that 10% in broker fees are not incurred (the “broker savings”). In such case, the broker savings were available to be paid by the Company for marketing expenses or other non‑cash compensation. Total offering costs incurred on the third public offering as of the termination date of October 31, 2020 were $624,188 which were below the reimbursement threshold. Therefore, there were no amounts reimbursable from the Investment Adviser as of the offering termination date. Of the cumulative offering costs incurred on the third public offering by the Company as of the offering termination date of October 31, 2020 and June 30, 2020, MacKenzie had paid on behalf of the Company a total of $346,349 and $300,212, respectively. Of the amounts paid by MacKenzie, as of June 30, 2020, the Company had not reimbursed MacKenzie in the amounts $52,492. Therefore, those amounts were recorded as payable to MacKenzie and included as a part of due to related entities in the consolidated statements of assets and liabilities (predecessor basis) as of June 30, 2020. The Company had fully reimbursed MacKenzie as of June 30, 2021. During the six months ended June 30, 2021 and December 31, 2020, total offering costs paid by MacKenzie on behalf of the Company on its second and third public offerings were $0 and $46,136, respectively. During the years ended June 30, 2020 and 2019, total offering costs paid by MacKenzie on behalf of the Company on its second and third public offerings were $444,935 and $550,908, respectively. The third public offering terminated on October 31, 2020. Therefore, the remaining deferred offering costs that had not been amortized as of the termination date were fully expensed as of December 31, 2020. Total amortization of these deferred costs for the six months ended June 30, 2021 and December 31, 2020, were $0 and $342,015, respectively. Total amortization of these deferred costs for the years ended June 30, 2020 and 2019, were $880,138 and $556,165, respectively. Administration Agreement: Under the Administration Agreement, the Company reimburses MacKenzie for its allocable portion of overhead and other expenses it incurs in performing its obligations under the Administration Agreement, including furnishing the Company with office facilities, equipment and clerical, bookkeeping and record keeping services at such facilities, as well as providing the Company with other administrative services, subject to the independent directors' approval. In addition, the Company reimburses MacKenzie for the fees and expenses associated with performing compliance functions, and its allocable portion of the compensation of the Company's Chief Financial Officer, Chief Compliance Officer, Director of Accounting and Financial Reporting, and any administrative support staff. Effective November 1, 2018, transfer agent services are also provided by MacKenzie and the costs incurred by MacKenzie in providing the services are reimbursed by the Company. No fee (only cost reimbursement) is being paid by the Company to MacKenzie for this service. The administrative cost reimbursements for the six months ended June 30, 2021 and December 31, 2020, were $310,400 and $310,400, respectively. The administrative cost reimbursements for the years ended June 30, 2020 and 2019, were $680,000 and $570,667, respectively. Transfer agent services cost reimbursements for the six months ended June 30, 2021 and December 31, 2020, were $61,600, and $61,600, respectively. Transfer agent services cost reimbursements for the years ended June 30, 2020 and 2019, were $80,000 and $23,333, respectively. The table below outlines the related party expenses incurred for the six months ended June 30, 2021 and December 31, 2020, and years ended June 30, 2020 and 2019, and unpaid as of June 30, 2021, and 2020. Six Months Ended Six Months Ended Incurred For The Year Ended Unpaid as of Types and Recipient June 30, 2021 December 31, 2020 June 30, 2020 June 30, 2019 June 30, 2021 June 30, 2020 Asset management fees- the Real Estate Adviser $ 1,354,323 $ - $ - $ - $ - $ - Base management fees- the - 1,335,376 2,549,076 2,206,227 - 657,280 Asset acquisition fees- the Real Estate Adviser (3) 343,750 - - - - Portfolio structuring fees- the Investment Adviser - 6,679 588,203 707,589 - - Subordinated Incentive fee - the Adviser - - - 1,789,870 - - Administrative cost reimbursements- MacKenzie 310,400 310,400 680,000 570,667 - - Transfer agent cost reimbursements - MacKenzie 61,600 61,600 80,000 23,333 - - Organization & Offering Cost (2) MacKenzie - 342,015 444,935 550,908 - 52,492 Other expenses (1) - - - 1,937 8,492 Due to related entities $ 1,937 $ 718,264 (1) (2) (3) Controlled or Affiliated Investments ( ) Under the 1940 Act, the Company generally is deemed to be an “affiliated person” of a portfolio company if it owns 5% or more of the portfolio company’s voting securities and generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of June 30, 2020, the Company is deemed to be either “affiliated” with, or in “control” of, the below portfolio companies despite the fact that the Company does not have the power to exercise control over the management or policies of these portfolio companies. June 30, 2020: Name of Issuer and Title of Issue Fair Value at Gross Additions Transfers Gross Reductions (1) Net Realized Gains/(Losses) Net Change in Unrealized Gains/(Losses) Fair Value at Interest/Dividend/Other income Affiliated Investments: 5210 Fountaingate, LP $ 552,693 $ - $ - $ - $ - $ (126,897 ) $ 425,796 $ - Arrowpoint Burlington LLC 1,088,910 - - (1,333,331 ) 583,331 (338,910 ) - - BP3 Affiliate, LLC 1,350,000 318,000 - - - - 1,668,000 - BR Desota Investment Co, LLC 4,250,000 - - (4,250,000 ) - - - 46,623 BR Everwood Investment Co, LLC - 3,750,000 - - - - 3,750,000 479,871 BR Quinn35 Investment Co, LLC 4,000,000 - - (4,000,000 ) - - - 167,768 BR Sunrise Parc Investment Co, LLC - 2,720,911 - - - - 2,720,911 253,410 BR Westerly Investment Co, LLC - 4,120,667 - (4,120,667 ) - - - - FSP Energy Tower I Corp. Liquidating Trust 57,566 - - (49,637 ) - 1,881 9,810 37,438 FSP Satellite Place 712,585 41,693 - - - (221,699 ) 532,579 - Lakemont Partners, LLC 1,007,700 - - (58,820 ) - (91,720 ) 857,160 26,135 MPF Pacific Gateway - Class B 7,316 - - - - (152 ) 7,164 - Secured Income, LP 302,009 - - - - (40,095 ) 261,914 - Summit Healthcare REIT, Inc. 2,587,408 4,488 - - - (717,346 ) 1,874,550 - $ 15,916,187 $ 10,955,759 $ - $ (13,812,455 ) $ 583,331 $ (1,534,938 ) $ 12,107,884 $ 1,011,245 Controlled Investments: Addison NC, LLC 3,600,000 $ - $ (2,000,000 ) $ - $ - $ (1,600,000 ) $ - $ - Addison Property Member, LLC 7,314,855 - (7,316,326 ) - - 1,471 - 1,176,187 Bishop Berkeley, LLC 4,051,013 - - - - (196,790 ) 3,854,223 69,034 Britannia Preferred Members, LLC -Class 1 2,986,550 - - - - 519,400 3,505,950 - Britannia Preferred Members, LLC -Class 2 7,758,915 - - - - (669,316 ) 7,089,599 - Capitol Hill Partners, LLC 1,852,500 - - - - (383,800 ) 1,468,700 - Citrus Park Hotel Holdings, LLC - 5,000,000 - - - - 5,000,000 287,500 Coastal Realty Business Trust, REEP, Inc. - A 39,053 - - - - (5,063 ) 33,990 - Dimensions28 LLP 10,886,076 - - - - 63,612 10,949,688 485,321 MacKenzie Realty Operating Partnership, LP - 2,829,579 9,316,326 - - (532,764 ) 11,613,141 - Sunlit Holdings, LLC - 5,000,000 - (5,000,000 ) - - - 334,111 $ 38,488,962 $ 12,829,579 $ - $ (5,000,000 ) $ - $ (2,803,250 ) $ 43,515,291 $ 2,352,153 Of the investments listed above, the Company (or its affiliates) has the power to exercise control over the management or policies of the portfolio companies listed below: Coastal Realty Business Trust ("CRBT"): CRBT is a Nevada business trust whose trustee is MacKenzie. Each series of the trust has its own beneficiaries and own assets. The Company owns two series of CRBT and is the only beneficiary of such series. Under the terms of the agreement, there are no redemption rights to any of the series participants. The Company and TRS are the sole beneficiaries of the following series as of June 30, 2021 and 2020: • CRBT, REEP, Inc.-A, which has an ownership interest in one of three general partners of a limited partnership which owns one multi-family property located in Frederick, Maryland. The Operating Partnership: As of June 30, 2020, the Operating Partnership was considered as a controlled investment. The Operating Partnership has been consolidated with the Company effective December 31, 2020 as discussed above in note 1. MPF Pacific Gateway: MPF Pacific Gateway, which was managed by MacKenzie, was a holding company that owned an investment in a REIT Liquidating Trust. The Company had a 15.82% ownership interest in MPF Pacific Gateway. The company made final liquidating distributions and dissolved during the year ended June 30, 2021. Related Party Investment Purchases: During the year ended June 30, 2021, two investment funds affiliated with the Company’s Advisers, which are also advised by the Investment Adviser, desired to sell Britannia Preferred Members, LLC- Class 1 and Class 2 and FSP Satellite Place, LLC for cash. The Company desired to purchase those securities at a price equal to the net asset value as agreed to by the Investment Adviser and the Board. While the Investment Adviser believes that the purchase price for each of the securities was higher than any other third party would reasonably pay, the Company desired to increase its ownership of these two securities in order to solidify more control of them. The Board of Directors approved the offers made to the Funds and each of the Funds subsequently accepted the offer. The details of these purchases are as follows: Name of the Securities Purchase Price per Unit Units Purchased Total Price Paid Britannia Preferred Members, LLC - Class 1 $ 36,250.00 62.52 $ 2,266,350 Britannia Preferred Members, LLC - Class 2 $ 10.40 106,000.00 1,102,400 FSP Satellite Place LLC $ 46,895.00 19.01 891,709 $ 4,260,459 |
MARGIN LOANS
MARGIN LOANS | 12 Months Ended |
Jun. 30, 2021 | |
MARGIN LOANS [Abstract] | |
MARGIN LOANS | NOTE 7 MARGIN LOANS The Company has a brokerage account through which it buys and sells publicly traded securities. The provisions of the account allow the Company to borrow on certain securities held in the account and to purchase additional securities based on the account equity (including cash). Amounts borrowed are collateralized by the securities held in the account and bear interest at a negotiated rate payable monthly. Securities pledged to secure margin balances cannot be specifically identified as a portion of all securities held in a brokerage account are used as collateral. As of June 30, 2021, the Company had no margin credit available for cash withdrawal or the ability to purchase in additional securities. As of June 30, 2020, the Company had $2,655,155 of margin credit available for cash withdrawal or the ability to purchase up to $18,770,519 in additional publicly traded securities. As of June 30, 2021 and 2020, there was no amount outstanding under this short-term credit line. |
MORTGAGE NOTES PAYABLE AND DEBT
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY | 12 Months Ended |
Jun. 30, 2021 | |
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY [Abstract] | |
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY | NOTE 8 – MORTGAGE NOTES PAYABLE AND DEBT GUARANTY Property Owner Note Payable Property Owner is the obligor under a note payable to Wells Fargo Bank, NA in the original loan amount of $32,000,000 at an interest rate of LIBOR plus 3.75%. The loan originally matured on November 1, 2019 and is secured by the properties owned by Property Owner. On June 8, 2020, as part of the Contribution Agreement discussed above under Note 1, the Company agreed to guarantee the loan and the maturity date of the loan was extended to April 30, 2021, with an option to further extend the maturity date to April 30, 2022. In April 2021, the Company exercised the option and extended the loan maturity date to April 30, 2022. The principal balance of the loan immediately prior to the Loan Modification Agreement was $25,827,107. The new loan principal amount due under the modified agreement was $24,404,257, and the interest rate was modified to be equal to the Federal Funds Rate plus 3.75%. As of June 30, 2021, the outstanding loan amount was $23,568,330. The loan requires payments only of interest through the maturity date; however, certain provisions of the loan agreement allow the lender to apply excess cash flow during a cash trap period to the principal balance. Under the Loan Modification Agreement and Replacement Guaranty, the Company guaranteed only the “Recourse Obligations” under the loan, which are triggered only if the guarantor of the loan engages in “Bad Boy Acts” (such as fraud, intentional misrepresentation, willful misconduct, waste, conversion, intentional failure to pay taxes or maintain insurance, filing for bankruptcy, etc.). As of June 30, 2021, the Company has not recorded any debt guaranty obligation because (i) the Property Owner was current on the loan payments, (ii) the Company believes the Property Owner has sufficient cash flow to meet its monthly payments, and (iii) the Company has not engaged in inappropriate actions that would give rise to a guaranty obligation. In addition, the appraised value of the collateral was higher than the loan balance as of June 30, 2021. Madison and PVT Notes Payable On February 26, 2021, Madison and PVT obtained mortgage loans from First Republic Bank in the amounts of $6,737,500 and $8,387,500, respectively, both at a fixed interest rate of 3.0% per annum through April 1, 2026. Effective May 1, 2026, interest rates will be the average of the twelve most recently published yields on US Treasury securities adjusted a constant maturity of one year as published by the Federal Reserve System in the Statistical Release H.15 plus 2.75% per annum. The loans were obtained to finance the acquisition of the Commodore Apartments and Pon De Leo Apartments, which are located in Oakland, California. The loans mature are cross-collateralized by both properties owned by Madison and PVT. The loan requires interest only monthly payments through April 1, 2026 and beginning May 1, 2026 monthly payments of principal and interests are due based on 360 months of amortization period. The remaining unpaid principal balance is due at maturity date. As of June 30, 2021, the outstanding loan amounts were $6,737,500 and $8,387,500, on the Madison and PVT mortgage loans, respectively. |
FINANCIAL HIGHLIGHTS (PREDECESS
FINANCIAL HIGHLIGHTS (PREDECESSOR BASIS) | 12 Months Ended |
Jun. 30, 2021 | |
FINANCIAL HIGHLIGHTS (PREDECESSOR BASIS) [Abstract] | |
FINANCIAL HIGHLIGHTS (PREDECESSOR BASIS) | NOTE 9 - FINANCIAL HIGHLIGHTS (PREDECESSOR BASIS) The following is a schedule of financial highlights of the Company for the years ended June 30, 2020, 2019, 2018, and 2017: For The Year Ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Per Share Data: Beginning net asset value ("NAV") $ 9.44 $ 10.07 $ 9.84 $ 9.94 Net investment income (1) 0.28 0.57 0.30 0.33 Net realized gain (1) 0.15 0.12 0.36 0.31 Net unrealized gain (loss) (1) (1.39 ) (0.40 ) 0.79 0.39 Net increase in net assets resulting from operations (0.96 ) 0.29 1.45 1.03 Issuance of common stock above (below) NAV (1) (4) - (0.21 ) (0.32 ) (0.37 ) Redemption of common stock below NAV (1) (6) 0.01 0.02 0.01 0.02 Dividends to stockholders (1) (5) (0.45 ) (0.73 ) (0.91 ) (0.78 ) Ending NAV $ 8.04 $ 9.44 $ 10.07 $ 9.84 Weighted average common Shares outstanding 12,198,040 9,951,816 7,440,841 5,183,166 Shares outstanding at the end of period 12,836,608 10,926,320 8,496,142 6,096,773 Net assets at the end of period $ 103,225,721 $ 103,115,381 $ 85,595,319 $ 59,989,525 Average net assets (2) $ 103,170,551 $ 94,355,350 $ 72,792,422 $ 50,160,858 Ratios to average net assets Total expenses 5.10 % 6.62 % 6.52 % 6.05 % Net investment income 3.36 % 5.98 % 3.06 % 3.46 % Total rate of return (2) (3) (11.37 )% 3.06 % 14.79 % 10.67 % (1) Based on weighted average number of shares of common stock outstanding for the period. (2) Average net assets were derived from the beginning and ending period-end net assets. (3) Total return is based on the net increase (decrease) in net assets resulting from operations divided by average net assets. An individual stockholder’s return may vary from this return based on the time of capital transactions. (4) per share as of October 30, 2019 and $1.03 per share thereafter (5) Dividends are determined based on taxable income calculated in accordance with income tax regulations which may differ from amounts determined under GAAP. (6) Amounts based on differences between the actual redemption price and the NAVs preceding the redemptions |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 10 EARNINGS PER SHARE Basic earnings per share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributed to potentially diluted securities. The following table sets forth the computation of basic and diluted earnings per share for the six months ended June 30, 2021 and December 31, 2020, and years ended June 30, 2020 and 2019: Six Months Ended Six Months Ended Year Ended Year Ended (Successor Basis) (Predecessor Basis) (Predecessor Basis) (Predecessor Basis) Net Income (loss) $ 264,157 $ (9,667,137 ) $ (11,725,552 ) $ 2,885,507 Basic and diluted weighted Average common shares outstanding 13,332,535.70 13,020,208.16 12,198,040.44 9,951,815.67 Basic and diluted earnings per share $ 0.02 $ (0.74 ) $ (0.96 ) $ 0.29 |
SHARE OFFERINGS AND FEES
SHARE OFFERINGS AND FEES | 12 Months Ended |
Jun. 30, 2021 | |
SHARE OFFERINGS AND FEES [Abstract] | |
SHARE OFFERINGS AND FEES | NOTE 11 – SHARE OFFERINGS AND FEES During the year ended June 30, 2021, the Company issued 21,720 shares with gross proceeds of $218,439. For the year ended June 30, 2021, the Company incurred selling commissions and fees of $18,060. In addition to the shares sold through our public offering, in October 2020, the Company issued 504,091.15 shares at $7.85 per share, which was the most recent NAV at the time of the issuance, to the Class A unit holders of the Operating Partnership as discussed in Note 1. During the year ended June 30, 2020, the Company issued 1,943,646 shares with gross proceeds of $19,505,452, under the current offering and issued 317,840 shares under the Company's dividend reinvestment plan ("DRIP") with gross proceeds of $2,891,349. For the year ended June 30, 2020, the Company incurred selling commissions and fees of $1,823,648. No selling commissions and fees were incurred for the shares issued under the DRIP. |
SHARE REPURCHASE PLAN
SHARE REPURCHASE PLAN | 12 Months Ended |
Jun. 30, 2021 | |
SHARE REPURCHASE PLAN [Abstract] | |
SHARE REPURCHASE PLAN | NOTE 12 – SHARE REPURCHASE PLAN On May 11, 2020, after assessing the impacts of the COVID-19 pandemic, the Company’s board of directors unanimously approved the suspension of the Company’s Share Repurchase Program. The Company resumed the Share Repurchase Program on March 19, 2021. During the year ended June 30, 2021, the Company made tender offers to purchase its own shares as noted in the below table: Period Total Number Repurchase Price Total Repurchase Consideration During the year ended June 30, 2021: April 22, 2021 through May 12, 2021 68,135.92 $ 6.00 $ 408,818 During the year ended June 30, 2020, the Company made tender offers to purchase its own shares as noted in the below table: Period Total Number Repurchase Price Total Repurchase Consideration During the year ended June 30, 2020: August 13, 2019 through September 16, 2019 70,114.03 $ 9.00 $ 631,026 November 18, 2019 through December 19, 2019 102,739.90 $ 9.00 $ 924,659 February 14, 2020 through March 18, 2020 178,344.44 $ 9.19 $ 1,638,985 351,198.37 $ 3,194,670 |
STOCKHOLDER DIVIDENDS AND INCOM
STOCKHOLDER DIVIDENDS AND INCOME TAXES | 12 Months Ended |
Jun. 30, 2021 | |
STOCKHOLDER DIVIDENDS AND INCOME TAXES [Abstract] | |
STOCKHOLDER DIVIDENDS AND INCOME TAXES | NOTE 13 – STOCKHOLDER DIVIDENDS AND INCOME TAXES On March 31, 2020, after assessing the impacts of the COVID-19 pandemic, the Company’s board of directors unanimously approved the suspension of regular quarterly dividends to the Company’s stockholders. On May 10, 2021, the Board of Directors reinstated the quarterly dividend at the rate of $0.05 per common share, payable to holders of record as of May 15, 2021. Subsequently, the Company declared $0.06 per common share for the quarter ended June 30, 2021, on July 9, 2021 and $0.07 per common share for the quarter ending September 30, 2021 on September 13, 2021. The dividend declared on July 9, 2021 was paid on July 26, 2021. The dividend declared on September 13, 2021 will be paid on or about October 30, 2021. The Board intends to continue such dividend so long as it is supported by the previous quarter’s income, but may increase or decrease the dividend accordingly. The following table reflects the dividends per share that the Company has declared on its common stock during the six months ended June 30, 2021: Distributions During the Quarter Ended Per Share Amount June 30, 2021 $ 0.050 $ 664,714 Of the total dividends paid during the six months ended June 30, 2021, $204,277 has been reinvested under the Company’s DRIP. The following table reflects the dividends per share that the Company has declared on its common stock during the year ended June 30, 2020: Distributions During the Quarter Ended Per Share Amount September 30, 2019 $ 0.175 $ 1,983,801 December 31, 2019 0.175 2,096,915 March 31, 2020 0.120 1,461,875 $ 0.470 $ 5,542,591 Of the total dividends paid during the year ended June 30, 2020, $2,891,349 has been reinvested under the Company’s DRIP. Income Taxes While our fiscal year end for financial reporting purposes is June 30 of each year, our tax year end is December 31 of each year. The information presented in this footnote is based on our tax year end for each period presented, unless otherwise specified. For income tax purposes, dividends paid to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof. The tax character of dividends paid to stockholders for the tax year ended December 31, 2019 (the most recent tax year ended completed and filed), is as follows: December 31, 2019 Capital gain $ 2,415,285 Ordinary income 3,085,298 Return of capital 24,521 Total dividends $ 5,525,104 The tax character of dividends paid to stockholders during the tax year ended December 31, 2020, is expected to be ordinary income, capital gains and return of capital. Because of the difference between our fiscal and tax year ends, the final determination of the tax character of dividends will not be made until we file our tax return for the tax year ending December 31, 2020. The components of undistributed earnings on a tax basis as of December 31, 2019 is as follows: December 31, 2019 Unrealized fair value appreciation $ 4,813,649 The following table presents the aggregate gross unrealized appreciation, depreciation, and cost basis of investments for income tax purposes as of: June 30, 2020 Aggregate gross unrealized appreciation $ 4,054,329 Aggregate gross unrealized depreciation (12,067,004 ) Net unrealized appreciation (depreciation) $ (8,012,675 ) Aggregate cost (tax basis) $ 101,717,821 |
Schedule III - Real Estate Prop
Schedule III - Real Estate Properties and Accumulated Depreciation | 12 Months Ended |
Jun. 30, 2021 | |
Schedule III - Real Estate Properties and Accumulated Depreciation [Abstract] | |
Schedule III - Real Estate Properties and Accumulated Depreciation | MacKenzie Realty Capital, Inc. Schedule III- Real Estate Properties and Accumulated Depreciation June 30, 2021 Initial Costs Subsequent Acquisition Gross Amount Carried at Property: Acquisition Date Encumbrances at June 30, 2021 Land Building & Improvements Land Building & Improvements June 30, 2021 Accumulated Depreciation Addison Corporate Center December 31, 2020 * $ 23,568,330 $ 6,456,615 $ 19,108,041 $ - $ - $ 25,564,656 $ (914,064 ) Commodore Apartment Building March 5, 2021 6,737,500 5,519,963 7,488,715 - - 13,008,678 (83,937 ) Pon Do Leo Apartment Building March 5, 2021 8,387,500 4,317,013 11,751,249 - - 16,068,262 (109,465 ) $ 38,693,330 $ 16,293,591 $ 38,348,005 $ - $ - $ 54,641,596 $ (1,107,466 ) *Date the Company consolidated the underlying entity that owns the property A summary of activity for real estate and accumulated depreciation for the year ended June 30, 2021. The Company did not own any real estate properties prior to year ended June 30, 2021. Real Estate Year Ended Balance at the beginning of the year $ - Additions- acquisitions 54,641,596 Balance at end of the year $ 54,641,596 Accumulated Depreciation Balance at the beginning of the year $ - Depreciation expense 1,107,466 Balance at end of the year $ 1,107,466 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation and Consolidation Policy | Basis of Presentation and Consolidation Policy The accompanying consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-K and Regulation S-X. The Company follows the accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company’s wholly owned consolidated subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. Prior to the termination of its status as a BDC, the Company was an investment company under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 (“ASC 946”). Under the 1940 Act rules, regulations pursuant to Article 6 of Regulation S-X and ASC 946, the Company is precluded from consolidating portfolio company investments, including those in which the Company has a controlling interest, unless the portfolio company is an investment company. An exception to this general principle occurs if the Company owns a controlled operating company whose purpose is to provide services to the Company such as an investment adviser or transfer agent. None of the Company’s investments qualifies for this exception. Therefore, the Company’s portfolio company investments, including those in which the Company has a controlling interest, are carried on the consolidated statements of assets and liabilities at fair value with changes to fair value recognized as “Net unrealized gain (loss)” on the Consolidated Statements of Operations until the investment is realized, usually upon exit, resulting in any gain or loss on exit being recognized as a realized gain or loss. However, in the event that any controlled subsidiary exceeds the tests of significance set forth in Rules 3-09 or 4-08(g) of Regulation S-X, the Company will include required financial information for such subsidiary in the notes or as an attachment to its consolidated financial statements. As a result of the termination of the Company’s status as a BDC, the Company is no longer an investment company under ASC 946. The Company discontinued applying the guidance in ASC 946 and began to account for the change in status prospectively by accounting for its investments in accordance with other GAAP topics as of the date of the change in status. The Company’s consolidated financial statements for the period subsequent to the termination of its BDC status are prepared on a consolidated basis to include the financial position, results of operations, and cash flows of the Company and its wholly owned and majority-owned subsidiaries, rather than by the investment company fair valuation approach. This change in status and the application of new basis of accounting affect the comparability of the consolidated financial statements for directly presenting corresponding items for 2021 and 2020. As such, for the year ended June 30, 2021, the consolidated statements of operations, changes in net assets (referred as “equity” effective June 30, 2021) and cash flows have been presented in two separate statements: for the six months ended December 31, 2020 as they would be for an investment company (on a “predecessor basis”) and for the six months ended June 30, 2021 as it would be for a REIT (on a “successor basis”). For the years ended June 30, 2020 and 2019, the consolidated statements of operations, changes in net assets, and cash flows have been presented on the predecessor basis. The consolidated statement of assets and liabilities (referred as “balance sheet” effective June 30, 2021) at June 30, 2020 has been presented on the predecessor basis and the consolidated balance sheet at June 30, 2021, has been presented on the successor basis. Certain interim period information has been reclassified to conform to the current year end presentation. The reclassification has no effect on the Company's consolidated balance sheet or the consolidated statement of operations as previously reported. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect reported asset values, liabilities, revenues, expenses and unrealized gains (losses) on investments during the reporting period. Material estimates that are susceptible to change, and actual results could differ from those estimates. |
Variable Interest Entities | Variable Interest Entities The Company evaluates the need to consolidate its investments in securities in accordance with ASC Topic 810, Consolidation |
Cash and Restricted Cash | Cash and Restricted Cash The Company’s cash represent balances held in current bank accounts and restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, debt service and leasing costs held by lenders. These balances are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to certain limits. At times the cash balances held in financial institutions by the Company may exceed these insured limits. |
Investments Income Receivable | Investments Income Receivable Investments income receivable represent dividends, distributions, and sales proceeds recognized in accordance with our revenue recognition policy but not yet received as of the date of the consolidated financial statements. The amounts are generally fully collectible as they are recognized based on completed transactions. The Company monitors and adjusts its receivables, and those deemed to be uncollectible are written-off only after all reasonable collection efforts are exhausted. The Company has determined that all investments income receivable balances outstanding as of June 30, 2021 and 2020, are collectible and do not require recording any uncollectible allowance. |
Rents and Other Receivables | Rents and Other Receivables The Company will periodically evaluate the collectability of amounts due from tenants and maintain an allowance for doubtful accounts for estimated losses resulting from the inability of tenants to make required payments under lease agreements. The Company exercises judgment in establishing these allowances and considers payment history and current credit status of tenants in developing these estimates. |
Capital Pending Acceptance | Capital Pending Acceptance The Company conducts closings for new purchases of the Company’s common stock twice per month and admits new stockholders effective beginning the first of each month. Subscriptions are effective only upon the Company's acceptance. Any gross proceeds received from subscriptions which are not accepted as of the period-end are classified as capital pending acceptance in the consolidated statements of assets and liabilities. As of June 30, 2021, there was no capital pending acceptance. As of June 30, 2020, capital pending acceptance was $87,739. |
Organization and Deferred Offering Costs | Organization and Deferred Offering Costs Organization costs include, among other things, the cost of legal services pertaining to the organization and incorporation of the business, incorporation fees, and audit fees relating to public offerings and the initial statement of assets and liabilities. These costs are expensed as incurred. Offering costs include, among other things, legal fees and other costs pertaining to the preparation of the registration statements and pre- and post-effective amendments. While the Company was a BDC, offering costs were capitalized as deferred offering costs as incurred by the Company and subsequently amortized to expense over a twelve-month period. Any deferred offering costs that had not been amortized upon the expiration or earlier termination of an offering were accelerated and expensed upon such expiration or termination. |
Income Taxes and Deferred Tax Liability | Income Taxes and Deferred Tax Liability The Parent Company has elected to be treated as a REIT for tax purposes under the Code and as a REIT, is not subject to federal income taxes on amounts that it distributes to the stockholders, provided that, on an annual basis, it distributes at least 90% of its REIT taxable income to the stockholders and meets certain other conditions. To the extent that it satisfies the annual distribution requirement but distributes less than 100% of its taxable income, it is either subject to U.S. federal corporate income tax on its undistributed taxable income or 4% excise tax on catch-up distributions paid in the subsequent year. The Parent Company satisfied the annual dividend payment and other REIT requirements for the tax year ended December 31, 2020. Therefore, the Parent Company did not incur any tax expense or excise tax on its income from operations during the quarterly periods within the tax year 2020. Similarly, for the tax year 2021, we believe the Parent Company paid the requisite amounts of dividends during the year and met other REIT requirements such that it will not owe any income taxes. Therefore, the Parent Company did not record any income tax provisions during any fiscal periods within the tax year 2021. The income tax benefit of $13,348 in the consolidated statements of operation for the year ended June 30, 2019, relate to the Parent Company’s built-in gain tax adjustments. The built-in gain tax adjustment amounts are the differences between the actual and the estimated tax liabilities on the built-in gains realized during the year. Prior to the effective date of its REIT election, the Parent Company had net unrealized built-in gains of $239,595, for which the Parent Company recorded an estimated tax liability of $95,431 as of December 31, 2013. Accordingly, in each subsequent period, the Parent Company only recorded the difference between the actual and estimated tax on the built-in gains it realized during the year as income tax expense or benefit. All unrealized built-in gains after December 31, 2018 were not taxable as the five-year period following the REIT election date ended on December 31, 2018. Therefore, the remaining deferred tax liabilities of $13,348 on the unrealized built-in gains were reversed as income tax benefit during the year ended June 30, 2019. TRS and MacKenzie NY 2 are subject to corporate federal and state income tax on their taxable income at regular statutory rates. However, as of June 30, 2021, they did not have any taxable income for tax years 2020 or 2021. Therefore, TRS and MacKenzie NY 2 did not record any income tax provisions during any fiscal period within the tax year 2020 and 2021. The Operating Partnership is a limited partnership and its wholly owned subsidiary, the Property Owner, is a limited liability company and Madison and PVT are limited liability companies. Accordingly, all income tax liabilities of these entities flow through to their partners, which ultimately is the Company. Therefore, no income tax provisions are recorded for these entities. The Company and its subsidiaries follow ASC 740, Income Taxes, (“ASC 740”) to account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to the net unrealized investment gain (losses) on existing investments. In estimating future tax consequences, the Company considers all future events, other than enactments of changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period of enactment. In addition, ASC 740 provides guidance for recognizing, measuring, presenting, and disclosing uncertain tax positions in the consolidated financial statements. As of June 30, 2021 and 2020, there were no uncertain tax positions. Management’s determinations regarding ASC 740 are subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the date of the consolidated statements of assets and liabilities but before the date the consolidated financial statements are available to be issued. Subsequent events that provide additional evidence about conditions that existed at the date of the consolidated statements of assets and liabilities are considered in the preparation of the consolidated financial statements presented herein. Subsequent events that occur after the date of the consolidated statements of assets and liabilities that do not provide evidence about the conditions that existed as of the date of the consolidated statements of net assets are considered for disclosure based upon their significance in relation to the Company's consolidated financial statements taken as a whole. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value estimates are made at discrete points in time based on relevant information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. The Company believes that the carrying amounts of its financial instruments, consisting of cash, restricted cash, investments income, rent and other receivables, prepaid expenses and other assets, mortgage notes payable, accounts payable and accrued liabilities, below-market lease liabilities, net, deferred rent and other liabilities and due to related entities, approximate the fair values of such items. |
Revenue Recognition | Revenue Recognition Realized gains or losses on investments are recognized in the period of disposal, distribution, or exchange and are measured by the difference between the proceeds from the sale or distribution and the cost basis (adjusted for return of capital, if any) of the investment. Investments are disposed of on a first-in, first-out basis. Operational dividends or distributions received from portfolio investments are recorded as investment income. Distributions resulting from the sale or refinance of an investee’s underlying assets are evaluated by management and recorded as either investment income or as a reduction of cost basis (return of capital). Management determines the estimated fair value of the investment after the sale or refinance and compares this estimate to the adjusted cost basis of the investment. If the estimated fair value is higher than the adjusted cost basis, distributions are recorded as investment income. If the estimated fair value is lower than the adjusted cost basis, distributions are first recorded as return of capital to reduce the cost basis down to the estimated fair value. Distributions in excess of those recorded as return of capital are recorded as investment income. The Company recognizes minimum rent, including rental abatements, lease incentives, and contractual fixed increases attributable to operating leases on a straight-line basis over the term of the related leases when collectability is probable. The Company records amounts expected to be received in later years as deferred rent receivable. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that can be taken in the form of cash or a credit against the tenant’s rent) that is funded is treated as a lease incentive and amortized as a reduction of rental revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the lessee or lessor supervises the construction and bears the risk of cost overruns; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. The Company recognizes rental revenue, net of concessions, on a straight-line basis over the term of the lease, when collectability is determined to be probable. In accordance with Topic 842, the Company determines whether collectability of lease payments in an operating lease is probable. If the Company determines the lease payments are not probable of collection, the Company fully reserves for rent and reimbursement receivables, including deferred rent receivable, and recognizes rental income on cash basis. |
Dividends and Distributions | Dividends and Distributions Dividends (and distributions, if any) to common stockholders are recorded on the date of declaration. The amount, if any, to be paid as a quarterly dividend (or distribution, if any) is approved quarterly by the Board of Directors and is generally based upon management's estimate of the Company's earnings for the quarter. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In August 2018, the FASB issued guidance which changes the fair value disclosure requirements. The new guidance includes new, eliminated and modified fair value disclosures. Among other requirements, the guidance requires disclosure of the range and weighted average of the significant unobservable inputs for Level 3 fair value measurements and the way they are calculated. The guidance also eliminated the following disclosures: (1) amount and reason for transfers between Level I and Level II, (2) policy for timing of transfers between levels of the fair value hierarchy and (3) valuation processes for Level 3 fair value measurement. The guidance was adopted and did not have a material effect on the Company’s consolidated financial statements. In May 2020, the SEC adopted rules Release No. 33-10786 (the "SEC Release"), Amendments to Financial Disclosures about Acquired and Disposed Businesses |
Valuation of Investments | Valuation of Investments The Company's consolidated financial statements include investments that are measured at their estimated fair values in accordance with GAAP. A fair value measurement represents the price at which an orderly transaction would occur between willing market participants at the measurement date. The Company develops fair values for investments based on available inputs which could include pricing that is observed in the marketplace. Examples of market information that the Company attempts to obtain include the following: • Recently quoted trading prices for the same or similar securities; • Recent purchase prices paid for the same or similar securities; • Recent sale prices received for the same or similar securities; • Relevant reports issued by industry analysts and publications; and • Other relevant observable and unobservable inputs, including liquidity discounts. After considering all available indications of the appropriate rate of return that market participants would require, the Company considers the reasonableness of the range indicated by the results to determine an estimate that, in its opinion, is most representative of fair value. The real estate securities in which the Company invests are, due to the absence of an efficient market, generally illiquid. Establishing fair values for illiquid investments is inherently subjective and is often dependent upon significant estimates and modeling assumptions. If either the volume and/or level of trading activity for an investment has significantly changed from normal market conditions, or price quotations or observable inputs are not associated with orderly transactions, the market inputs used might not be relevant. For example, recently quoted trading prices might not be relevant if a ready market does not exist for the quantity of investments that the Company may wish to sell. In circumstances where relevant market inputs cannot be obtained, increased analysis and management judgment are required to estimate fair value. This generally requires the Company to establish the use of internal assumptions about future cash flows, including the cash flows of underlying real property, and appropriate risk-adjusted discount rates. Regardless of the valuation inputs used, the objective of fair value measurement is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price. The Company is under no compulsion to dispose of its investments, and expects to hold them for a substantial period of time. Therefore, estimated values as determined above may not reflect amounts that could be realized upon actual sale at a future date. |
Fair Value Measurements | Fair Value Measurements GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observables used in measuring investments at fair value. Market price is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available actively quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observables and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following categories: Level I – Quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level I are publicly traded equity securities. The Company does not adjust the quoted price for these investments even in situations where the Company holds a large position and a sale could reasonably impact the quoted price. Level II – Price inputs are quoted prices for similar financial instruments in active markets; quoted prices for identical or similar financial instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. Investments which are generally included in this category are publicly traded equity securities with restrictions. Level III – Pricing inputs are unobservable and include situations where there is little, if any, market activity for the investment. Fair values for these investments are estimated by management using valuation methodologies that consider a range of factors, including but not limited to the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public exchanges for comparable securities, current and projected operating performance, financial condition, and financing transactions subsequent to the acquisition of the investment. The inputs into the determination of fair value require significant judgment by management. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had an active market for these investments existed. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Management's assessment of the significance of a particular input to the fair value measurement, in its entirety, requires judgment and considers factors specific to the investment. |
Equity Securities | Equity Securities The Company has equity investments in various limited partnerships and non-traded entities, which do not have readily determinable fair values. The Company does not have controlling interests in these entities. Thus, these investments have been recorded as investments in equity securities in accordance with ASC Topic 321, Investments – Equity Securities |
Equity Method Investments with Fair Value Option Election | Equity Method Investments with Fair Value Option Election The Company elected the fair value option of accounting for the investments listed below that would have otherwise been recorded under the equity method of accounting. The primary purpose of electing the fair value option was to enhance the transparency of the Company’s financial condition. Changes in the fair value of these investments, which are inclusive of equity in income, are recorded in the consolidated statement of operations during the period such changes occur. The below list of investments would have been accounted for under the equity method if the fair value method had not been elected and have been included in investments, at fair value and unconsolidated investments (non-securities), at fair value in the consolidated balance sheet as of June 30, 2021: Investee Legal Form Asset Type % Ownership Fair Value as of FSP Satellite Place Corporation Non Traded Company 35.60 % $ 2,867,911 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % 30,574 Bishop Berkeley, LLC Limited Liability Company LP Interest 69.03 % 5,142,164 BP3 Affiliate, LLC Limited Liability Company LP Interest 12.51 % 1,668,000 Britannia Preferred Members, LLC - Class 1 Limited Liability Company LP Interest 26.99 % 6,448,000 Britannia Preferred Members, LLC - Class 2 Limited Liability Company LP Interest 40.28 % 5,891,945 Capitol Hill Partners, LLC Limited Liability Company LP Interest 25.93 % 1,007,000 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % 5,000,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % 11,449,296 Lakemont Partners, LLC Limited Liability Company LP Interest 17.02 % 817,770 Secured Income L.P. Limited Partnership LP Interest 6.57 % 267,734 Total $ 40,590,394 |
Unconsolidated investments (non-securities) at Fair Value | Unconsolidated investments (non-securities) at Fair Value These are equity method investments that are majority owned subsidiaries of the Company, but do not meet the consolidation requirements under ASC topic 810. Under the Investment Company Act of 1940, as majority owned subsidiaries, these investments are considered “voting securities” as opposed to “investment securities.” Therefore, the Company listed these equity method investments at fair value separately from rest of the equity method investments at fair value in the consolidated balance sheet. As of June 30, 2021, the Company’s investments in Bishop Berkeley, LLC, Britannia Preferred Members, LLC - Class 1 and Class 2, and Dimensions 28, LLP were considered to be voting securities under the 1940 Act and therefore, were shown as unconsolidated investments (non-securities), at fair value in the consolidated balance sheet. For GAAP purposes, these investments have been recorded under the equity method investments, for which the Company has elected the fair value option as discussed above. |
Adoption of Lease Accounting Topic 842 | Adoption of Lease Accounting Topic 842 In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). Under ASU 2016-02, an entity is required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor, and parties to sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to facilitate assessment the amount, timing, and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” (“ASU 2018-11”). ASU 2018-11 provides lessors with a practical expedient to not separate lease and non-lease components if both (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease. The Company adopted the practical expedient as of July 1, 2019, to account for lease and non-lease components as a single component in lease contracts where the Company or one of its subsidiaries is the lessor. The Company’s current portfolio consists of commercial office properties and residential apartment buildings whereby the Company generates rental revenue by leasing office space and apartment units to the building’s tenants. These tenant leases fall under the scope of Topic 842, and are classified as operating leases. Revenues from such leases are recognized on a straight-line basis over the terms of the lease agreements. Non-lease components of the Company’s leases are combined with the related lease components and accounted for as a single lease component under Topic 842. The balances of net real estate investments and related depreciation on the Company’s consolidated financial statements relate to assets for which the Company is the lessor. |
Real Estate Assets, Capital Additions, Depreciation and Amortization | Real Estate Assets, Capital Additions, Depreciation and Amortization The Company capitalizes costs, including certain indirect costs, incurred for capital additions, including redevelopment, development, and construction projects. The Company also allocates certain department costs, including payroll, at the corporate levels as “indirect costs” of capital additions, if such costs clearly relate to capital additions. The Company also capitalizes interest, property taxes and insurance during periods in which redevelopment, development, and construction projects are in progress. Cost capitalization begins once the development or construction activity commences and ceases when the asset is ready for its intended use. Repair and maintenance and tenant turnover costs are expensed as incurred. Repair and maintenance and tenant turnover costs include all costs that do not extend the useful life of the real estate asset. Depreciation and amortization expense are computed on the straight-line method over the asset’s estimated useful life. The Company considers the period of future benefit of an asset to determine its appropriate useful life and anticipates the estimated useful lives of assets by class to be generally as follows: Buildings 16 – 45 years Building improvements 5 – 15 years Land improvements 5 – 15 years Furniture, fixtures and equipment 3 – 7 years In-place leases 1 – 10 years |
Real Estate Purchase Price Allocations | Real Estate Purchase Price Allocations In accordance with the guidance for business combinations, upon the acquisition of real estate properties, the Company evaluates whether the transaction is a business combination or an asset acquisition. If the transaction does not meet the definition of a business combination, the Company records the assets acquired, the liabilities assumed, and any non-controlling interest as of the acquisition date, measured at their relative fair values. Acquisition-related costs are capitalized in the period incurred and are added to the components of the real estate assets acquired. The Company assesses the acquisition-date fair values of all tangible assets, identifiable intangible assets, and assumed liabilities using methods similar to those used by independent appraisers (e.g., discounted cash flow analysis) and that utilize appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on several factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it was vacant. Intangible assets include the value of in-place leases, which are classified as operating leases and represents the estimated fair value of the net cash flows of leases in place at the time of acquisition, as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up. The Company amortizes the value of in-place leases to expense over the remaining non-cancelable term of the respective leases, which is on average five years. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, prevailing interest rates, and the number of years the property will be held for investment. The use of inappropriate assumptions could result in an incorrect valuation of acquired tangible assets, identifiable intangible assets, and assumed liabilities, which could impact the amount of the Company’s net income (loss). Differences in the amount attributed to the fair value estimate of the various assets acquired can be significant based upon the assumptions made in calculating these estimates. |
Impairment of Real Estate Assets | Impairment of Real Estate Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying value of the Company’s real estate and related intangible assets may not be recoverable. When indicators of potential impairment emerge, the Company assesses whether the Company will recover the carrying value of the asset through its undiscounted future cash flows and its eventual disposition. Based on this assessment, if the Company does not believe that it will recover the carrying value of the real estate and related intangible assets, the Company will record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangible assets. No impairment charges were recorded for the six months ended June 30, 2021 and December 31, 2020. |
Gain on Dispositions of Real Estate Investments | Gain on Dispositions of Real Estate Investments Gains on sales of rental real estate are not considered sales to customers and will generally be recognized pursuant to the provisions of ASC 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets (“ASC 610-20”), which applies to sales or transfers to noncustomers of nonfinancial assets or in substance nonfinancial assets that do not meet the definition of a business. Generally, the Company’s sales of real estate would be considered a sale of a nonfinancial asset as defined by ASC 610-20. ASC 610-20 refers to the revenue recognition principles under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Under ASC 610-20, if the Company determines it does not have a controlling financial interest in the entity that holds the asset and the arrangement meets the criteria to be accounted for as a contract, the Company will dispose of the asset and recognize a gain or loss on the sale of the real estate when control of the underlying asset transfers to the buyer. |
Reportable Segments | Reportable Segments ASC 280, Segment Reporting |
PRINCIPAL BUSINESS AND ORGANI_2
PRINCIPAL BUSINESS AND ORGANIZATION (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
PRINCIPAL BUSINESS AND ORGANIZATION [Abstract] | |
Investment at New Carrying Value | As a result of the change in the Company’s status and applying the new basis of accounting as discussed in Note 2, on the effective date of the termination of the Company’s status as a BDC, the Company recorded the fair value of the investments as the new carrying value of the investments and recorded a carrying value adjustment as follows: December 31, 2020 Investment Type Original Carrying Value Adjustment Fair Value/ New Carrying Value Publicly Traded Companies $ 10,342,217 $ (2,710,814 ) $ 7,631,403 Non Traded Companies 41,610,397 (10,978,801 ) 30,631,596 LP Interests 37,554,454 657,849 38,212,303 Investment Trust 49,900 (15,910 ) 33,990 Total non-consolidated investments 89,556,968 (13,047,676 ) 76,509,292 The Operating Partnership (Consolidated) 16,103,020 (8,075,436 ) 8,027,584 Total $ 105,659,988 $ (21,123,112 ) $ 84,536,876 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
List of Investments | The below list of investments would have been accounted for under the equity method if the fair value method had not been elected and have been included in investments, at fair value and unconsolidated investments (non-securities), at fair value in the consolidated balance sheet as of June 30, 2021: Investee Legal Form Asset Type % Ownership Fair Value as of FSP Satellite Place Corporation Non Traded Company 35.60 % $ 2,867,911 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % 30,574 Bishop Berkeley, LLC Limited Liability Company LP Interest 69.03 % 5,142,164 BP3 Affiliate, LLC Limited Liability Company LP Interest 12.51 % 1,668,000 Britannia Preferred Members, LLC - Class 1 Limited Liability Company LP Interest 26.99 % 6,448,000 Britannia Preferred Members, LLC - Class 2 Limited Liability Company LP Interest 40.28 % 5,891,945 Capitol Hill Partners, LLC Limited Liability Company LP Interest 25.93 % 1,007,000 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % 5,000,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % 11,449,296 Lakemont Partners, LLC Limited Liability Company LP Interest 17.02 % 817,770 Secured Income L.P. Limited Partnership LP Interest 6.57 % 267,734 Total $ 40,590,394 |
Estimated Useful Lives of Assets by Class | The Company considers the period of future benefit of an asset to determine its appropriate useful life and anticipates the estimated useful lives of assets by class to be generally as follows: Buildings 16 – 45 years Building improvements 5 – 15 years Land improvements 5 – 15 years Furniture, fixtures and equipment 3 – 7 years In-place leases 1 – 10 years |
INVESTMENTS IN REAL ESTATE AS_2
INVESTMENTS IN REAL ESTATE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
INVESTMENTS IN REAL ESTATE ASSETS [Abstract] | |
Consolidated Operating Properties Information | The following table provides summary information regarding the Company’s operating properties, which are owned through the Company’s subsidiaries; Operating Partnership, Madison and PVT: Consolidated Operating Properties Property Name: Addison Corporate Center Commodore Apartments Pon de Leo Apartments Property Owner: The Operating Partnership Madison-PVT Partners LLC PVT-Madison Partners LLC Location: Windsor, CT Oakland, CA Oakland, CA Number of Tenants: 6 48 39 Year Built: 1980 1912 1929 Ownership Interest: 100% 100% 100% |
Purchase Price Allocation for Property Acquired | The following table summarizes the assets acquired and liabilities assumed at the acquisition date for the Operating Partnership’s acquisition of Property Owner on June 8, 2020: Purchase Price Allocation June 8, 2020 Land $ 7,814,670 Building 19,761,048 Building and tenant improvements 4,553,356 Intangible lease assets 6,580,926 Other current assets 3,872,238 Total assets acquired $ 42,582,238 Mortgages assumed` $ 24,404,257 Other current liabilities 1,647,965 Total liabilities assumed 26,052,222 Fair value of equity interests $ 16,530,016 |
Adjusted Carrying Value of Long-lived Assets | Therefore, during consolidation the Company recorded a carrying value adjustment of $6,332,745 on all of the Operating Partnership’s long-lived assets proportionately based on the relative carrying values at December 31, 2020, immediately prior to the termination of BDC status as shown in the following table: Carrying Value Before Adjustment Adjustment Adjusted Carrying Value Land $ 7,814,670 $ 1,358,055 $ 6,456,615 Building 19,040,593 3,308,926 15,731,667 Building and tenant improvements 3,986,945 692,862 3,294,083 Intangible lease assets: Lease in place 4,237,905 736,475 3,501,430 Leasing commissions 782,349 120,558 661,791 Leaseholds (above market) 541,822 94,159 447,663 Leasehold improvements 99,599 17,308 82,291 Other intangibles 25,333 4,402 20,931 $ 36,529,216 $ 6,332,745 $ 30,196,471 The following table presents the allocation of real estate assets acquired and liabilities assumed during the six months ended June 30, 2021. Both acquisitions were considered asset acquisitions for accounting purposes. Property Name: Commodore Apartments Pon de Leo Apartments Purchase Price Allocation Land $ 5,519,963 $ 4,317,013 Building 6,513,902 10,818,957 Building and tenant improvements 144,384 185,924 Furniture, Fixtures & Equipment 830,429 746,368 Intangible lease assets 190,219 209,479 Net leasehold asset (liability) (485,544 ) (451,908 ) Total consideration paid for acquired real estate investments, net of liabilities assumed $ 12,713,353 $ 15,825,833 |
Components of Income From Real Estate Operations | The following table presents the components of income from real estate operations for the six months ended June 30, 2021: Lease Income- Operating leases $ 3,141,111 Variable lease income (1) 604,004 $ 3,745,115 (1) Primarily includes tenant reimbursements for utilities and common area maintenance. |
Real Estate Properties Under Non-Cancelable Operating Leases | As of June 30, 2021, the future minimum rental income from the Company’s real estate properties under non-cancelable operating leases are as follows: Year ended June 30,: Rental Income 2022 $ 5,351,154 2023 3,154,883 2024 2,976,158 2025 3,051,039 2026 2,161,240 Thereafter 4,758,268 Total $ 21,452,742 |
Acquired Lease Intangibles, Above-Market Lease Assets and Below-Market Lease Liabilities | As of June 30, 2021, the Company’s acquired lease intangibles, above-market lease assets and below-market lease liabilities, were as follows: Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Cost $ 5,141,279 $ 447,663 $ 937,452 Accumulated amortization (1,086,485 ) (63,952 ) (99,139 ) Total $ 4,054,794 $ 383,711 $ 838,313 Weighted average amortization period (years) 3.1 3.5 3.4 |
Amortization of Lease Intangibles, Above-Market Lease Assets And Below-Market Lease Liabilities | The Company’s amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the six months ended June 30, 2021, were as follows Six Months Ended June 30, 2021 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 1,086,486 $ 63,952 $ (99,139 ) |
Projected Amortization Expense and Adjustments | The following table provides the projected amortization expense and adjustments to revenue from tenants for intangible assets and liabilities for the next five years: Year Ended June 30, : 2022 2023 2024 2025 2026 In-place leases, to be included in amortization $ 1,414,305 $ 1,425,147 $ 833,535 $ 69,243 $ 69,243 Above-market lease intangibles $ 127,904 $ 127,904 $ 127,904 $ - $ - Below-market lease liabilities (286,908 ) (267,695 ) (217,763 ) (65,947 ) - Total to be included in revenue from tenants $ (159,004 ) $ (139,791 ) $ (89,859 ) $ (65,947 ) $ - |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
INVESTMENTS [Abstract] | |
Composition of Investments at Fair Value | The following table summarizes the composition of the Company's equity method investments with fair value option election and other equity securities at fair value as of June 30, 2021 (successor basis): Asset Type Fair Value Publicly Traded Companies $ 169,200 Non Traded Companies 29,426,441 Non Traded Company (Equity method investment with fair value option election) 2,867,911 LP Interests 288,494 LP Interests (Equity method investment with fair value option election) 37,722,483 Investment Trust 34,714 Total $ 70,509,243 |
Composition of Investments at Cost and Fair value | The following table summarizes the composition of the Company's investments at cost and fair value as of June 30, 2020 (predecessor basis): June 30, 2020 Asset Type Cost Fair Value Publicly Traded Companies $ 8,454,348 $ 7,244,654 Non Traded Companies 42,474,614 32,808,076 LP Interests 53,713,785 53,618,425 Investment Trust 49,901 33,990 Total $ 104,692,648 $ 93,705,145 |
Fair Value Measurements of Investments | The following table presents fair value measurements of the Company's investments measured at fair value on a recurring basis as of June 30, 2021, according to the fair value hierarchy (successor basis): Asset Type Total Level I Level II Level III Publicly Traded Companies $ 169,200 $ 169,200 $ - $ - Non Traded Companies 32,294,352 - - 32,294,352 LP Interests 38,010,977 - - 38,010,977 Investment Trust 34,714 - - 34,714 Total $ 70,509,243 $ 169,200 $ - $ 70,340,043 The following table presents fair value measurements of the Company's investments measured at fair value on a recurring basis as of June 30, 2020, according to the fair value hierarchy (predecessor basis): Asset Type Total Level I Level II Level III Publicly Traded Companies $ 7,244,654 $ 7,244,654 $ - $ - Non Traded Companies 32,808,076 - - 32,808,076 LP Interests 53,618,425 - - 53,618,425 Investment Trust 33,990 - - 33,990 Total $ 93,705,145 $ 7,244,654 $ - $ 86,460,491 |
Reconciliation of the Beginning and Ending Balances for Investments Measured at Fair value on a Recurring Basis | The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the six months ended June 30, 2021 (successor basis): Balance at December 31, 2020 $ 68,877,889 Purchases of investments 8,830,765 Transfers to Level I (229,879 ) Proceeds from sales, net (1,922,780 ) Return of capital distributions (6,001,052 ) Net realized losses (160,108 ) Net unrealized gains 945,208 Ending balance at June 30, 2021 $ 70,340,043 The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the six months ended December 31, 2020 (predecessor basis): Balance at July 1, 2020 $ 86,460,491 Purchases of investments 13,448,477 Transfers to Level I (1,900,470 ) Consolidation of the Operating Partnership (Note 1) (8,027,584 ) Proceeds from sales, net (1,011,748 ) Return of capital (11,486,835 ) Net realized gains 30,050 Net unrealized losses (8,634,492 ) Ending balance at December 31, 2020 $ 68,877,889 The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the year ended June 30, 2020 (predecessor basis): Balance at July 1, 2019 $ 101,094,142 Purchases of investments 35,586,486 Proceeds from sales, net (3,639,699 ) Return of capital (31,368,114 ) Net realized gains 608,053 Net unrealized losses (15,820,377 ) Ending balance at June 30, 2020 $ 86,460,491 |
Significant Unobservable Inputs Used in Fair Value Measurements | The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2021 (successor basis): Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Company $ 2,867,911 Direct Capitalization Method Capitalization rate 7.9 % Liquidity discount 32.0 % Non Traded Companies 66,337 Estimated Liquidation Value Sponsor provided value Liquidity discount 2.0% - 67.0 % 53.6 % Bankruptcy filing Non Traded Companies 29,360,104 Market Activity Secondary market industry publication Underlying property sales contract Acquisition cost LP Interests 19,717,495 Direct Capitalization Method Capitalization rate 3.5% - 7.5 % 5.8 % Liquidity discount 20.0% - 33.0 % 20.9 % LP Interests 11,448,000 Discounted Cash Flow Discount rate 9.0% - 20.0 % 13.2 % Discount term (months) 24 LP Interests 6,845,482 Estimated Liquidation Value Sponsor provided value Underlying property sales contract Liquidity discount 5.0% - 46.19 % 16.1 % Appraisal Investment Trust 34,714 Direct Capitalization Method Capitalization rate 6.0 % Liquidity discount 33.0 % $ 70,340,043 The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2020 (predecessor basis): Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Companies $ 541,858 Direct Capitalization Method Capitalization rate 6.5% - 7.6 % 7.5 % Liquidity discount 32.0% - 35.0 % 32.1 % Non Traded Companies 65,856 Estimated Liquidation Value Sponsor provided value Liquidity discount 12.0% - 78.0 % 45.1 % Non Traded Companies 32,200,362 Market Activity Secondary market industry publication Liquidity discount * 7.5% - 12.5 % 7.6 % LP Interests 24,974,379 Direct Capitalization Method Capitalization rate 3.4% - 6.8 % 5.2 % Liquidity discount 5.0% - 40.0 % 15.5 % LP Interests 14,976,861 Discounted Cash Flow Discount rate 9.0% - 20.0 % 11.6 % Discount term (months) 6.0 - 9.0 7.1 LP Interests 11,724,322 Estimated Liquidation Value Sponsor provided value Underlying property sales contract Underlying property appraisal Liquidity discount 19.0% - 43.0 % 41.5 % LP Interests 1,942,863 Market Activity Underlying security sales contract Secondary market industry publication Contributed capital Investment Trust 33,990 Market Activity Underlying security sales contract $ 86,460,491 * In the past years, the Company valued Level III investments primarily by reference to secondary market activities. However, due to the COVID-19 pandemic, secondary market activities significantly declined during the second quarter of 2020. While the most active of these securities had transactions reported based on new COVID-19 occupancy and financial information, two of the Level III investments only had earlier reported transactions. Therefore, to determine the fair values of these non-traded securities as of |
Aggregated Summarized Financial Information of Investees | The aggregated summarized financial information of the investees are as follows: Total Assets $ 230,663,168 Total Liabilities $ 145,077,360 Total Equities $ 85,585,809 Total Revenues $ 11,641,169 Total Expenses $ 10,880,536 Total Net Income $ 760,632 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
Summary of the Nonconsolidated VIE | The table below presents a summary of the nonconsolidated VIEs in which the Company holds variable interests. Total Nonconsolidated VIEs As of June 30, 2021 Fair value of investments in VIEs $ 38,006,233 Carrying value of variable interests - assets $ 38,529,875 Carrying value of variable interests - liabilities $ - Maximum Exposure to Loss: Limited Partnership Interest $ 38,529,875 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Base Management Fees | The asset management and base management fees mentioned above were based on the following quarter ended Invested Capital segregated in two columns based on the annual fee rate: Asset/Base Management Fee Annual % 3.0% 2.0% 1.5% Total Invested Capital For the Year Ended June 30, 2021 Quarter ended: September 30, 2020 $ 20,000,000 $ 80,000,000 $ 28,769,486 $ 128,769,486 December 31, 2020 20,000,000 80,000,000 33,997,317 133,997,317 March 31, 2021 20,000,000 80,000,000 34,120,859 134,120,859 June 30, 2021 20,000,000 80,000,000 33,648,965 133,648,965 For the Year Ended June 30, 2020 Quarter ended: September 30, 2019 $ 20,000,000 $ 80,000,000 $ 15,998,789 $ 115,998,789 December 31, 2019 20,000,000 80,000,000 21,409,289 121,409,289 March 30, 2020 20,000,000 80,000,000 27,070,974 127,070,974 June 30, 2020 20,000,000 80,000,000 28,607,752 128,607,752 For the Year Ended June 30, 2019 Quarter ended: September 30, 2018 $ 20,000,000 $ 72,435,844 $ - $ 92,435,844 December 31, 2018 20,000,000 78,322,307 - 98,322,307 March 31, 2019 20,000,000 80,000,000 4,719,872 104,719,872 June 30, 2019 20,000,000 80,000,000 9,263,200 109,263,200 |
Related Party Expenses | The table below outlines the related party expenses incurred for the six months ended June 30, 2021 and December 31, 2020, and years ended June 30, 2020 and 2019, and unpaid as of June 30, 2021, and 2020. Six Months Ended Six Months Ended Incurred For The Year Ended Unpaid as of Types and Recipient June 30, 2021 December 31, 2020 June 30, 2020 June 30, 2019 June 30, 2021 June 30, 2020 Asset management fees- the Real Estate Adviser $ 1,354,323 $ - $ - $ - $ - $ - Base management fees- the - 1,335,376 2,549,076 2,206,227 - 657,280 Asset acquisition fees- the Real Estate Adviser (3) 343,750 - - - - Portfolio structuring fees- the Investment Adviser - 6,679 588,203 707,589 - - Subordinated Incentive fee - the Adviser - - - 1,789,870 - - Administrative cost reimbursements- MacKenzie 310,400 310,400 680,000 570,667 - - Transfer agent cost reimbursements - MacKenzie 61,600 61,600 80,000 23,333 - - Organization & Offering Cost (2) MacKenzie - 342,015 444,935 550,908 - 52,492 Other expenses (1) - - - 1,937 8,492 Due to related entities $ 1,937 $ 718,264 (1) (2) (3) |
Investments in Controlled and Affiliated Investments | Under the 1940 Act, the Company generally is deemed to be an “affiliated person” of a portfolio company if it owns 5% or more of the portfolio company’s voting securities and generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of June 30, 2020, the Company is deemed to be either “affiliated” with, or in “control” of, the below portfolio companies despite the fact that the Company does not have the power to exercise control over the management or policies of these portfolio companies. June 30, 2020: Name of Issuer and Title of Issue Fair Value at Gross Additions Transfers Gross Reductions (1) Net Realized Gains/(Losses) Net Change in Unrealized Gains/(Losses) Fair Value at Interest/Dividend/Other income Affiliated Investments: 5210 Fountaingate, LP $ 552,693 $ - $ - $ - $ - $ (126,897 ) $ 425,796 $ - Arrowpoint Burlington LLC 1,088,910 - - (1,333,331 ) 583,331 (338,910 ) - - BP3 Affiliate, LLC 1,350,000 318,000 - - - - 1,668,000 - BR Desota Investment Co, LLC 4,250,000 - - (4,250,000 ) - - - 46,623 BR Everwood Investment Co, LLC - 3,750,000 - - - - 3,750,000 479,871 BR Quinn35 Investment Co, LLC 4,000,000 - - (4,000,000 ) - - - 167,768 BR Sunrise Parc Investment Co, LLC - 2,720,911 - - - - 2,720,911 253,410 BR Westerly Investment Co, LLC - 4,120,667 - (4,120,667 ) - - - - FSP Energy Tower I Corp. Liquidating Trust 57,566 - - (49,637 ) - 1,881 9,810 37,438 FSP Satellite Place 712,585 41,693 - - - (221,699 ) 532,579 - Lakemont Partners, LLC 1,007,700 - - (58,820 ) - (91,720 ) 857,160 26,135 MPF Pacific Gateway - Class B 7,316 - - - - (152 ) 7,164 - Secured Income, LP 302,009 - - - - (40,095 ) 261,914 - Summit Healthcare REIT, Inc. 2,587,408 4,488 - - - (717,346 ) 1,874,550 - $ 15,916,187 $ 10,955,759 $ - $ (13,812,455 ) $ 583,331 $ (1,534,938 ) $ 12,107,884 $ 1,011,245 Controlled Investments: Addison NC, LLC 3,600,000 $ - $ (2,000,000 ) $ - $ - $ (1,600,000 ) $ - $ - Addison Property Member, LLC 7,314,855 - (7,316,326 ) - - 1,471 - 1,176,187 Bishop Berkeley, LLC 4,051,013 - - - - (196,790 ) 3,854,223 69,034 Britannia Preferred Members, LLC -Class 1 2,986,550 - - - - 519,400 3,505,950 - Britannia Preferred Members, LLC -Class 2 7,758,915 - - - - (669,316 ) 7,089,599 - Capitol Hill Partners, LLC 1,852,500 - - - - (383,800 ) 1,468,700 - Citrus Park Hotel Holdings, LLC - 5,000,000 - - - - 5,000,000 287,500 Coastal Realty Business Trust, REEP, Inc. - A 39,053 - - - - (5,063 ) 33,990 - Dimensions28 LLP 10,886,076 - - - - 63,612 10,949,688 485,321 MacKenzie Realty Operating Partnership, LP - 2,829,579 9,316,326 - - (532,764 ) 11,613,141 - Sunlit Holdings, LLC - 5,000,000 - (5,000,000 ) - - - 334,111 $ 38,488,962 $ 12,829,579 $ - $ (5,000,000 ) $ - $ (2,803,250 ) $ 43,515,291 $ 2,352,153 |
Related Party Investment Purchases | The details of these purchases are as follows: Name of the Securities Purchase Price per Unit Units Purchased Total Price Paid Britannia Preferred Members, LLC - Class 1 $ 36,250.00 62.52 $ 2,266,350 Britannia Preferred Members, LLC - Class 2 $ 10.40 106,000.00 1,102,400 FSP Satellite Place LLC $ 46,895.00 19.01 891,709 $ 4,260,459 |
FINANCIAL HIGHLIGHTS (PREDECE_2
FINANCIAL HIGHLIGHTS (PREDECESSOR BASIS) (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
FINANCIAL HIGHLIGHTS (PREDECESSOR BASIS) [Abstract] | |
Schedule of Financial Highlights | The following is a schedule of financial highlights of the Company for the years ended June 30, 2020, 2019, 2018, and 2017: For The Year Ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Per Share Data: Beginning net asset value ("NAV") $ 9.44 $ 10.07 $ 9.84 $ 9.94 Net investment income (1) 0.28 0.57 0.30 0.33 Net realized gain (1) 0.15 0.12 0.36 0.31 Net unrealized gain (loss) (1) (1.39 ) (0.40 ) 0.79 0.39 Net increase in net assets resulting from operations (0.96 ) 0.29 1.45 1.03 Issuance of common stock above (below) NAV (1) (4) - (0.21 ) (0.32 ) (0.37 ) Redemption of common stock below NAV (1) (6) 0.01 0.02 0.01 0.02 Dividends to stockholders (1) (5) (0.45 ) (0.73 ) (0.91 ) (0.78 ) Ending NAV $ 8.04 $ 9.44 $ 10.07 $ 9.84 Weighted average common Shares outstanding 12,198,040 9,951,816 7,440,841 5,183,166 Shares outstanding at the end of period 12,836,608 10,926,320 8,496,142 6,096,773 Net assets at the end of period $ 103,225,721 $ 103,115,381 $ 85,595,319 $ 59,989,525 Average net assets (2) $ 103,170,551 $ 94,355,350 $ 72,792,422 $ 50,160,858 Ratios to average net assets Total expenses 5.10 % 6.62 % 6.52 % 6.05 % Net investment income 3.36 % 5.98 % 3.06 % 3.46 % Total rate of return (2) (3) (11.37 )% 3.06 % 14.79 % 10.67 % (1) Based on weighted average number of shares of common stock outstanding for the period. (2) Average net assets were derived from the beginning and ending period-end net assets. (3) Total return is based on the net increase (decrease) in net assets resulting from operations divided by average net assets. An individual stockholder’s return may vary from this return based on the time of capital transactions. (4) per share as of October 30, 2019 and $1.03 per share thereafter (5) Dividends are determined based on taxable income calculated in accordance with income tax regulations which may differ from amounts determined under GAAP. (6) Amounts based on differences between the actual redemption price and the NAVs preceding the redemptions |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share for the six months ended June 30, 2021 and December 31, 2020, and years ended June 30, 2020 and 2019: Six Months Ended Six Months Ended Year Ended Year Ended (Successor Basis) (Predecessor Basis) (Predecessor Basis) (Predecessor Basis) Net Income (loss) $ 264,157 $ (9,667,137 ) $ (11,725,552 ) $ 2,885,507 Basic and diluted weighted Average common shares outstanding 13,332,535.70 13,020,208.16 12,198,040.44 9,951,815.67 Basic and diluted earnings per share $ 0.02 $ (0.74 ) $ (0.96 ) $ 0.29 |
SHARE REPURCHASE PLAN (Tables)
SHARE REPURCHASE PLAN (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
SHARE REPURCHASE PLAN [Abstract] | |
Tender Offers to Purchase Own Shares | During the year ended June 30, 2021, the Company made tender offers to purchase its own shares as noted in the below table: Period Total Number Repurchase Price Total Repurchase Consideration During the year ended June 30, 2021: April 22, 2021 through May 12, 2021 68,135.92 $ 6.00 $ 408,818 During the year ended June 30, 2020, the Company made tender offers to purchase its own shares as noted in the below table: Period Total Number Repurchase Price Total Repurchase Consideration During the year ended June 30, 2020: August 13, 2019 through September 16, 2019 70,114.03 $ 9.00 $ 631,026 November 18, 2019 through December 19, 2019 102,739.90 $ 9.00 $ 924,659 February 14, 2020 through March 18, 2020 178,344.44 $ 9.19 $ 1,638,985 351,198.37 $ 3,194,670 |
STOCKHOLDER DIVIDENDS AND INC_2
STOCKHOLDER DIVIDENDS AND INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
STOCKHOLDER DIVIDENDS AND INCOME TAXES [Abstract] | |
Stockholder Dividends | The following table reflects the dividends per share that the Company has declared on its common stock during the six months ended June 30, 2021: Distributions During the Quarter Ended Per Share Amount June 30, 2021 $ 0.050 $ 664,714 The following table reflects the dividends per share that the Company has declared on its common stock during the year ended June 30, 2020: Distributions During the Quarter Ended Per Share Amount September 30, 2019 $ 0.175 $ 1,983,801 December 31, 2019 0.175 2,096,915 March 31, 2020 0.120 1,461,875 $ 0.470 $ 5,542,591 |
Income Components of Dividends Paid to Stockholders | The tax character of dividends paid to stockholders for the tax year ended December 31, 2019 (the most recent tax year ended completed and filed), is as follows: December 31, 2019 Capital gain $ 2,415,285 Ordinary income 3,085,298 Return of capital 24,521 Total dividends $ 5,525,104 |
Components of Undistributed Earnings on Tax Basis | The components of undistributed earnings on a tax basis as of December 31, 2019 is as follows: December 31, 2019 Unrealized fair value appreciation $ 4,813,649 |
Aggregate Gross Unrealized Appreciation, Depreciation, and Cost Basis of Investments | The following table presents the aggregate gross unrealized appreciation, depreciation, and cost basis of investments for income tax purposes as of: June 30, 2020 Aggregate gross unrealized appreciation $ 4,054,329 Aggregate gross unrealized depreciation (12,067,004 ) Net unrealized appreciation (depreciation) $ (8,012,675 ) Aggregate cost (tax basis) $ 101,717,821 |
PRINCIPAL BUSINESS AND ORGANI_3
PRINCIPAL BUSINESS AND ORGANIZATION (Details) | Oct. 31, 2019shares | Dec. 31, 2016shares | Oct. 31, 2016shares | Jun. 30, 2021USD ($)CompanyBuilding$ / sharesshares | Apr. 13, 2021USD ($)$ / shares | Jun. 30, 2020$ / sharesshares |
Common Stock Disclosures [Abstract] | ||||||
Total shares authorized for issue (in shares) | 100,000,000 | |||||
Common stock, authorized (in shares) | 80,000,000 | 80,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares authorized (in shares) | 20,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||
Common stock, Initial public offering (in shares) | 15,000,000 | 15,000,000 | 5,000,000 | |||
Common stock, shares outstanding (in shares) | 13,316,426.79 | 12,836,608.02 | ||||
Number of operating companies | Company | 2 | |||||
Number of residential apartment buildings to acquire and operate | Building | 2 | |||||
Portfolio risk concentration, percentage | 20.00% | |||||
Proceeds from public offerings | $ | $ 130,460,000 | |||||
Proceeds from dividend reinvestment plan | $ | 11,360,000 | |||||
Payment to repurchase shares | $ | $ 9,870,000 | |||||
Madison [Member] | ||||||
Common Stock Disclosures [Abstract] | ||||||
Ownership interest | 100.00% | |||||
PVT [Member] | ||||||
Common Stock Disclosures [Abstract] | ||||||
Ownership interest | 100.00% | |||||
Operating Partnership [Member] | ||||||
Common Stock Disclosures [Abstract] | ||||||
Ownership interest | 100.00% | |||||
Share swap ratio (in shares) | 1 | |||||
Equity Investors Member Units [Member] | Madison [Member] | ||||||
Common Stock Disclosures [Abstract] | ||||||
Ownership percentage of equity investors | 98.45% | |||||
Joint venture partners own percentage | 1.55% | |||||
Equity Investors Member Units [Member] | PVT [Member] | ||||||
Common Stock Disclosures [Abstract] | ||||||
Ownership percentage of equity investors | 98.75% | |||||
Joint venture partners own percentage | 1.25% | |||||
Series A Preferred Stock [Member] | ||||||
Common Stock Disclosures [Abstract] | ||||||
Preferred stock, authorized amount | $ | $ 50,000,000 | |||||
Preferred stock initial offering price (in dollars per share) | $ / shares | $ 25 | |||||
Class A [Member] | ||||||
Common Stock Disclosures [Abstract] | ||||||
Common stock, shares outstanding (in shares) | 12,052.85 |
PRINCIPAL BUSINESS AND ORGANI_4
PRINCIPAL BUSINESS AND ORGANIZATION, Investments (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investment at New Carrying Value [Abstract] | ||
Original Carrying Value | $ 105,659,988 | |
Carrying Value Adjustment | (21,123,112) | |
Fair Value/New Carrying Value | 84,536,876 | |
Publicly Traded Companies [Member] | ||
Investment at New Carrying Value [Abstract] | ||
Original Carrying Value | 10,342,217 | |
Carrying Value Adjustment | (2,710,814) | |
Fair Value/New Carrying Value | 7,631,403 | |
Non Traded Companies [Member] | ||
Investment at New Carrying Value [Abstract] | ||
Original Carrying Value | 41,610,397 | |
Carrying Value Adjustment | (10,978,801) | |
Fair Value/New Carrying Value | 30,631,596 | |
LP Interests [Member] | ||
Investment at New Carrying Value [Abstract] | ||
Original Carrying Value | 37,554,454 | |
Carrying Value Adjustment | 657,849 | |
Fair Value/New Carrying Value | 38,212,303 | |
Investment Trust [Member] | ||
Investment at New Carrying Value [Abstract] | ||
Original Carrying Value | 49,900 | |
Carrying Value Adjustment | (15,910) | |
Fair Value/New Carrying Value | 33,990 | |
The Non-Consolidated Investments [Member] | ||
Investment at New Carrying Value [Abstract] | ||
Original Carrying Value | 89,556,968 | |
Carrying Value Adjustment | (13,047,676) | |
Fair Value/New Carrying Value | 76,509,292 | |
The Operating Partnership (Consolidated) [Member] | ||
Investment at New Carrying Value [Abstract] | ||
Original Carrying Value | 16,103,020 | |
Carrying Value Adjustment | (8,075,436) | |
Fair Value/New Carrying Value | $ 8,027,584 | $ 8,027,584 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Capital Pending Acceptance (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Capital Pending Acceptance [Abstract] | ||
Capital pending acceptance | $ 0 | $ 87,739 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Organization and Deferred Offering Costs (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Organization and Deferred Offering Costs [Abstract] | |
Amortization period of deferred offering costs | 12 months |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Income Taxes and Deferred Tax Liability (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2013 | |
Income Taxes and Deferred Tax Liability [Abstract] | |||||
Percentage of excise tax on catch-up distributions paid in the subsequent year | 4.00% | ||||
Income tax provision (benefit) | $ 0 | $ 0 | $ (13,348) | ||
Uncertain tax positions | $ 0 | $ 0 | |||
Minimum [Member] | |||||
Income Taxes and Deferred Tax Liability [Abstract] | |||||
Percentage of taxable income annual distributions | 90.00% | ||||
Maximum [Member] | |||||
Income Taxes and Deferred Tax Liability [Abstract] | |||||
Percentage of taxable income annual distributions | 100.00% | ||||
Mackenzie Realty Capital, Inc [Member] | |||||
Income Taxes and Deferred Tax Liability [Abstract] | |||||
Built-in gain tax adjustments | (13,348) | ||||
Income tax provision (benefit) | $ 13,348 | ||||
Net unrealized built-in gains | $ 239,595 | ||||
Estimated tax liability | $ 95,431 | ||||
TRS and MacKenzie NY 2 [Member] | Tax Year 2020 [Member] | |||||
Income Taxes and Deferred Tax Liability [Abstract] | |||||
Income tax provision (benefit) | $ 0 | ||||
Taxable income | 0 | ||||
TRS and MacKenzie NY 2 [Member] | Tax Year 2021 [Member] | |||||
Income Taxes and Deferred Tax Liability [Abstract] | |||||
Income tax provision (benefit) | 0 | ||||
Taxable income | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, List of Investments (Details) | Jun. 30, 2021USD ($) |
Fair Value Option [Abstract] | |
Fair Value | $ 40,590,394 |
FSP Satellite Place [Member] | Corporation [Member] | Non Traded Company [Member] | |
Fair Value Option [Abstract] | |
Ownership percentage | 35.60% |
Fair Value | $ 2,867,911 |
5210 Fountaingate, LP [Member] | Limited Partnership [Member] | LP Interest [Member] | |
Fair Value Option [Abstract] | |
Ownership percentage | 9.92% |
Fair Value | $ 30,574 |
Bishop Berkeley, LLC [Member] | Limited Liability Company [Member] | LP Interest [Member] | |
Fair Value Option [Abstract] | |
Ownership percentage | 69.03% |
Fair Value | $ 5,142,164 |
BP3 Affiliate, LLC [Member] | Limited Liability Company [Member] | LP Interest [Member] | |
Fair Value Option [Abstract] | |
Ownership percentage | 12.51% |
Fair Value | $ 1,668,000 |
Britannia Preferred Members, LLC -Class 1 [Member] | Limited Liability Company [Member] | LP Interest [Member] | |
Fair Value Option [Abstract] | |
Ownership percentage | 26.99% |
Fair Value | $ 6,448,000 |
Britannia Preferred Members, LLC - Class 2 [Member] | Limited Liability Company [Member] | LP Interest [Member] | |
Fair Value Option [Abstract] | |
Ownership percentage | 40.28% |
Fair Value | $ 5,891,945 |
Capitol Hill Partners, LLC [Member] | Limited Liability Company [Member] | LP Interest [Member] | |
Fair Value Option [Abstract] | |
Ownership percentage | 25.93% |
Fair Value | $ 1,007,000 |
Citrus Park Hotel Holdings, LLC [Member] | Limited Liability Company [Member] | LP Interest [Member] | |
Fair Value Option [Abstract] | |
Ownership percentage | 35.27% |
Fair Value | $ 5,000,000 |
Dimensions 28, LLP [Member] | Limited Partnership [Member] | LP Interest [Member] | |
Fair Value Option [Abstract] | |
Ownership percentage | 90.00% |
Fair Value | $ 11,449,296 |
Lakemont Partners, LLC [Member] | Limited Liability Company [Member] | LP Interest [Member] | |
Fair Value Option [Abstract] | |
Ownership percentage | 17.02% |
Fair Value | $ 817,770 |
Secured Income L.P. [Member] | Limited Partnership [Member] | LP Interest [Member] | |
Fair Value Option [Abstract] | |
Ownership percentage | 6.57% |
Fair Value | $ 267,734 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Estimated Useful Lives of Assets by Class (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Remaining non-cancelable term of leases for amortization | 5 years | ||
Impairment charges of real estate assets | $ 0 | $ 0 | |
Buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives of assets | 16 years | ||
Buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives of assets | 45 years | ||
Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives of assets | 5 years | ||
Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives of assets | 15 years | ||
Land Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives of assets | 5 years | ||
Land Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives of assets | 15 years | ||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives of assets | 3 years | ||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives of assets | 7 years | ||
In-Place Leases [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives of assets | 1 year | ||
In-Place Leases [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives of assets | 10 years |
INVESTMENTS IN REAL ESTATE AS_3
INVESTMENTS IN REAL ESTATE ASSETS (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)Tenant | Jun. 30, 2021USD ($)Tenant | Dec. 31, 2020USD ($) | Jun. 08, 2020USD ($) | |
Equity [Abstract] | ||||
Fair value of operating partnership | $ 84,536,876 | $ 84,536,876 | ||
Long-Lived assets | $ 30,196,471 | |||
Land [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 6,456,615 | |||
Building [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 15,731,667 | |||
Building and Tenant Improvements [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 3,294,083 | |||
Lease in Place [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 3,501,430 | |||
Leasing Commissions [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 661,791 | |||
Leaseholds (Above Market) [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 447,663 | |||
Leasehold Improvements [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 82,291 | |||
Other Intangibles [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 20,931 | |||
Carrying Value Before Adjustment [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 36,529,216 | |||
Carrying Value Before Adjustment [Member] | Land [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 7,814,670 | |||
Carrying Value Before Adjustment [Member] | Building [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 19,040,593 | |||
Carrying Value Before Adjustment [Member] | Building and Tenant Improvements [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 3,986,945 | |||
Carrying Value Before Adjustment [Member] | Lease in Place [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 4,237,905 | |||
Carrying Value Before Adjustment [Member] | Leasing Commissions [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 782,349 | |||
Carrying Value Before Adjustment [Member] | Leaseholds (Above Market) [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 541,822 | |||
Carrying Value Before Adjustment [Member] | Leasehold Improvements [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 99,599 | |||
Carrying Value Before Adjustment [Member] | Other Intangibles [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 25,333 | |||
Adjustment [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 6,332,745 | |||
Adjustment [Member] | Land [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 1,358,055 | |||
Adjustment [Member] | Building [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 3,308,926 | |||
Adjustment [Member] | Building and Tenant Improvements [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 692,862 | |||
Adjustment [Member] | Lease in Place [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 736,475 | |||
Adjustment [Member] | Leasing Commissions [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 120,558 | |||
Adjustment [Member] | Leaseholds (Above Market) [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 94,159 | |||
Adjustment [Member] | Leasehold Improvements [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 17,308 | |||
Adjustment [Member] | Other Intangibles [Member] | ||||
Equity [Abstract] | ||||
Long-Lived assets | 4,402 | |||
Madison [Member] | ||||
Consolidated Operating Properties [Abstract] | ||||
Property Name | Commodore Apartments | |||
Property Owner | Madison-PVT Partners LLC | |||
Location | Oakland, CA | |||
Number of Tenants | Tenant | 48 | 48 | ||
Year Built | 1912 | |||
Ownership Interest | 100.00% | 100.00% | ||
Asset Acquisitions [Abstract] | ||||
Property Name | Commodore Apartments | |||
Acquisition Date | Mar. 5, 2021 | |||
Purchase Price Allocation [Abstract] | ||||
Land | $ 5,519,963 | |||
Building | 6,513,902 | |||
Building and tenant improvements | 144,384 | |||
Furniture, Fixtures & Equipment | 830,429 | |||
Intangible lease assets | 190,219 | |||
Net leasehold asset (liability) | (485,544) | |||
Total consideration paid for acquired real estate investments, net of liabilities assumed | $ 12,713,353 | |||
PVT [Member] | ||||
Consolidated Operating Properties [Abstract] | ||||
Property Name | Pon de Leo Apartments | |||
Property Owner | PVT-Madison Partners LLC | |||
Location | Oakland, CA | |||
Number of Tenants | Tenant | 39 | 39 | ||
Year Built | 1929 | |||
Ownership Interest | 100.00% | 100.00% | ||
Asset Acquisitions [Abstract] | ||||
Property Name | Pon de Leo Apartments | |||
Acquisition Date | Mar. 5, 2021 | |||
Purchase Price Allocation [Abstract] | ||||
Land | $ 4,317,013 | |||
Building | 10,818,957 | |||
Building and tenant improvements | 185,924 | |||
Furniture, Fixtures & Equipment | 746,368 | |||
Intangible lease assets | 209,479 | |||
Net leasehold asset (liability) | (451,908) | |||
Total consideration paid for acquired real estate investments, net of liabilities assumed | $ 15,825,833 | |||
Operating Partnership [Member] | ||||
Consolidated Operating Properties [Abstract] | ||||
Property Name | Addison Corporate Center | |||
Property Owner | The Operating Partnership | |||
Location | Windsor, CT | |||
Number of Tenants | Tenant | 6 | 6 | ||
Year Built | 1980 | |||
Ownership Interest | 100.00% | 100.00% | ||
Equity [Abstract] | ||||
Fair value of operating partnership | $ 8,027,584 | $ 8,027,584 | 8,027,584 | |
Assets carrying value before adjustment | 14,308,182 | |||
Long-Lived assets | $ 6,332,745 | |||
Operating Partnership [Member] | Property Owner [Member] | ||||
Assets Acquired [Abstract] | ||||
Land | $ 7,814,670 | |||
Building | 19,761,048 | |||
Building and tenant improvements | 4,553,356 | |||
Intangible lease assets | 6,580,926 | |||
Other current assets | 3,872,238 | |||
Total assets acquired | 42,582,238 | |||
Liabilities Assumed [Abstract] | ||||
Mortgages assumed | 24,404,257 | |||
Other current liabilities | 1,647,965 | |||
Total liabilities assumed | 26,052,222 | |||
Fair value of equity interests | $ 16,530,016 |
INVESTMENTS IN REAL ESTATE AS_4
INVESTMENTS IN REAL ESTATE ASSETS, Components of Income From Real Estate Operations (Details) | 6 Months Ended | |
Jun. 30, 2021USD ($) | ||
INVESTMENTS IN REAL ESTATE ASSETS [Abstract] | ||
Lease Income- Operating leases | $ 3,141,111 | |
Variable lease income | 604,004 | [1] |
Income from real estate operations | $ 3,745,115 | |
[1] | Primarily includes tenant reimbursements for utilities and common area maintenance. |
INVESTMENTS IN REAL ESTATE AS_5
INVESTMENTS IN REAL ESTATE ASSETS, Operating Leases Future Minimum Lease Payments (Details) | Jun. 30, 2021USD ($) |
Rental Income [Abstract] | |
2022 | $ 5,351,154 |
2023 | 3,154,883 |
2024 | 2,976,158 |
2025 | 3,051,039 |
2026 | 2,161,240 |
Thereafter | 4,758,268 |
Total | $ 21,452,742 |
INVESTMENTS IN REAL ESTATE AS_6
INVESTMENTS IN REAL ESTATE ASSETS, Acquired Lease Intangibles (Details) | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Acquired Lease Intangibles [Abstract] | |
Cost | $ 5,141,279 |
Accumulated amortization | (1,086,485) |
Total | $ 4,054,794 |
Weighted average amortization period (years) | 3 years 1 month 6 days |
Above-Market Leases Asset [Member] | |
Acquired Lease Intangibles [Abstract] | |
Cost | $ 447,663 |
Accumulated amortization | (63,952) |
Total | $ 383,711 |
Weighted average amortization period (years) | 3 years 6 months |
Below-Market Lease Liabilities [Member] | |
Acquired Lease Intangibles [Abstract] | |
Cost | $ 937,452 |
Accumulated amortization | (99,139) |
Total | $ 838,313 |
Weighted average amortization period (years) | 3 years 4 months 24 days |
INVESTMENTS IN REAL ESTATE AS_7
INVESTMENTS IN REAL ESTATE ASSETS, Amortization of Lease Intangibles (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Amortization of Lease Intangibles [Abstract] | |
Amortization | $ 1,086,486 |
Above-Market Leases Asset [Member] | |
Amortization of Lease Intangibles [Abstract] | |
Amortization | 63,952 |
Below-Market Lease Liabilities [Member] | |
Amortization of Lease Intangibles [Abstract] | |
Amortization | $ (99,139) |
INVESTMENTS IN REAL ESTATE AS_8
INVESTMENTS IN REAL ESTATE ASSETS, Projected Amortization Expense and Adjustments (Details) | Jun. 30, 2021USD ($) |
In-Place Leases, to be Included in Amortization [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2022 | $ 1,414,305 |
2023 | 1,425,147 |
2024 | 833,535 |
2025 | 69,243 |
2026 | 69,243 |
Above-Market Leases Intangibles [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2022 | 127,904 |
2023 | 127,904 |
2024 | 127,904 |
2025 | 0 |
2026 | 0 |
Below-Market Lease Liabilities [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2022 | (286,908) |
2023 | (267,695) |
2024 | (217,763) |
2025 | (65,947) |
2026 | 0 |
Total to be Included in Revenue from Tenants [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2022 | (159,004) |
2023 | (139,791) |
2024 | (89,859) |
2025 | (65,947) |
2026 | $ 0 |
INVESTMENTS, Investments at Cos
INVESTMENTS, Investments at Cost and Fair Value (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | $ 70,509,243 | $ 93,705,145 |
Investments at Cost [Abstract] | ||
Investments at Cost | 104,692,648 | |
Publicly Traded Companies [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 169,200 | 7,244,654 |
Investments at Cost [Abstract] | ||
Investments at Cost | 8,454,348 | |
Non Traded Companies [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 29,426,441 | 32,808,076 |
Investments at Cost [Abstract] | ||
Investments at Cost | 42,474,614 | |
Non Traded Company (Equity method investment with fair value option election) [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 2,867,911 | |
LP Interests [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 288,494 | 53,618,425 |
Investments at Cost [Abstract] | ||
Investments at Cost | 53,713,785 | |
LP Interests (Equity method investment with fair value option election) [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 37,722,483 | |
Investment Trust [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | $ 34,714 | 33,990 |
Investments at Cost [Abstract] | ||
Investments at Cost | $ 49,901 |
INVESTMENTS, Fair Value Measure
INVESTMENTS, Fair Value Measurements (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | $ 70,509,243 | $ 93,705,145 |
Level I [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 169,200 | 7,244,654 |
Level II [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Level III [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 70,340,043 | 86,460,491 |
Publicly Traded Companies [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 169,200 | 7,244,654 |
Publicly Traded Companies [Member] | Level I [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 169,200 | 7,244,654 |
Publicly Traded Companies [Member] | Level II [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Publicly Traded Companies [Member] | Level III [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Non Traded Companies [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 32,294,352 | 32,808,076 |
Non Traded Companies [Member] | Level I [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Non Traded Companies [Member] | Level II [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Non Traded Companies [Member] | Level III [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 32,294,352 | 32,808,076 |
LP Interests [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 38,010,977 | 53,618,425 |
LP Interests [Member] | Level I [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 0 | 0 |
LP Interests [Member] | Level II [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 0 | 0 |
LP Interests [Member] | Level III [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 38,010,977 | 53,618,425 |
Investment Trust [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 34,714 | 33,990 |
Investment Trust [Member] | Level I [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Investment Trust [Member] | Level II [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Investment Trust [Member] | Level III [Member] | ||
Investments in Fair Value Measurements [Abstract] | ||
Investments at Fair Value | $ 34,714 | $ 33,990 |
INVESTMENTS, Reconciliation for
INVESTMENTS, Reconciliation for Investments Measurements at Fair Value on a Recurring Basis (Details) - Level III [Member] | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021USD ($)Company | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance | $ 68,877,889 | $ 86,460,491 | $ 101,094,142 |
Purchases of investments | 8,830,765 | 13,448,477 | 35,586,486 |
Transfers to Level I | (229,879) | (1,900,470) | |
Consolidation of the Operating Partnership (Note 1) | (8,027,584) | ||
Proceeds from sales, net | (1,922,780) | (1,011,748) | (3,639,699) |
Return of capital | (6,001,052) | (11,486,835) | (31,368,114) |
Net realized gains (losses) | (160,108) | 30,050 | 608,053 |
Net unrealized gains (losses) | 945,208 | (8,634,492) | (15,820,377) |
Balance | $ 70,340,043 | 68,877,889 | 86,460,491 |
Number of invested companies tradability of securities changed | Company | 2 | ||
Unrealized gains (losses), net included in earnings | $ 945,208 | $ (1,836,915) | $ (12,445,631) |
INVESTMENTS, Significant Unobse
INVESTMENTS, Significant Unobservable Inputs Used in Level III Fair Value Measurement (Details) - Level III [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Valuation Technique and Input, Description [Abstract] | |||
Assets | $ 70,340,043 | $ 86,460,491 | |
Non Traded Companies [Member] | Direct Capitalization Method [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Assets | $ 2,867,911 | $ 541,858 | |
Non Traded Companies [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 7.90% | ||
Non Traded Companies [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Minimum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 6.50% | ||
Non Traded Companies [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Maximum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 7.60% | ||
Non Traded Companies [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Weighted Average [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 7.50% | ||
Non Traded Companies [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 32.00% | ||
Non Traded Companies [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | Minimum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 32.00% | ||
Non Traded Companies [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | Maximum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 35.00% | ||
Non Traded Companies [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | Weighted Average [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 32.10% | ||
Non Traded Companies [Member] | Estimated liquidation Value [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Assets | $ 66,337 | $ 65,856 | |
Non Traded Companies [Member] | Estimated liquidation Value [Member] | Sponsor Provided Value Liquidity Discount [Member] | Minimum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 2.00% | 12.00% | |
Non Traded Companies [Member] | Estimated liquidation Value [Member] | Sponsor Provided Value Liquidity Discount [Member] | Maximum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 67.00% | 78.00% | |
Non Traded Companies [Member] | Estimated liquidation Value [Member] | Sponsor Provided Value Liquidity Discount [Member] | Weighted Average [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 53.60% | 45.10% | |
Non Traded Companies [Member] | Market Activity [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Assets | $ 29,360,104 | $ 32,200,362 | |
Non Traded Companies [Member] | Market Activity [Member] | Secondary Market Industry Publication Liquidity Discount [Member] | Minimum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | [1] | 7.50% | |
Non Traded Companies [Member] | Market Activity [Member] | Secondary Market Industry Publication Liquidity Discount [Member] | Maximum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | [1] | 12.50% | |
Non Traded Companies [Member] | Market Activity [Member] | Secondary Market Industry Publication Liquidity Discount [Member] | Weighted Average [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | [1] | 7.60% | |
LP Interests [Member] | Direct Capitalization Method [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Assets | $ 19,717,495 | $ 24,974,379 | |
LP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Minimum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 3.50% | 3.40% | |
LP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Maximum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 7.50% | 6.80% | |
LP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Weighted Average [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 5.80% | 5.20% | |
LP Interests [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | Minimum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 20.00% | 5.00% | |
LP Interests [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | Maximum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 33.00% | 40.00% | |
LP Interests [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | Weighted Average [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 20.90% | 15.50% | |
LP Interests [Member] | Discounted Cash Flow [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Assets | $ 11,448,000 | $ 14,976,861 | |
Investment term | 24 months | ||
LP Interests [Member] | Discounted Cash Flow [Member] | Minimum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment term | 6 months | ||
LP Interests [Member] | Discounted Cash Flow [Member] | Maximum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment term | 9 months | ||
LP Interests [Member] | Discounted Cash Flow [Member] | Weighted Average [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment term | 7 months 3 days | ||
LP Interests [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Minimum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 9.00% | 9.00% | |
LP Interests [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Maximum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 20.00% | 20.00% | |
LP Interests [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Weighted Average [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 13.20% | 11.60% | |
LP Interests [Member] | Estimated liquidation Value [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Assets | $ 6,845,482 | $ 11,724,322 | |
LP Interests [Member] | Estimated liquidation Value [Member] | Sponsor Provided Value, Underlying Property Sales Contact, Underlying Property Appraisal and Liquidity Discount [Member] | Minimum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 5.60% | 19.00% | |
LP Interests [Member] | Estimated liquidation Value [Member] | Sponsor Provided Value, Underlying Property Sales Contact, Underlying Property Appraisal and Liquidity Discount [Member] | Maximum [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 46.19% | 43.00% | |
LP Interests [Member] | Estimated liquidation Value [Member] | Sponsor Provided Value, Underlying Property Sales Contact, Underlying Property Appraisal and Liquidity Discount [Member] | Weighted Average [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 16.10% | 41.50% | |
LP Interests [Member] | Market Activity [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Assets | $ 0 | $ 1,942,863 | |
Investment Trust [Member] | Direct Capitalization Method [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Assets | $ 33,990 | ||
Investment Trust [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 6.00% | 6.00% | |
Investment Trust [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Investment, Measurement Input | 33.00% | 25.00% | |
Investment Trust [Member] | Market Activity [Member] | |||
Valuation Technique and Input, Description [Abstract] | |||
Assets | $ 34,714 | ||
[1] | In the past years, the Company valued Level III investments primarily by reference to secondary market activities. However, due to the COVID-19 pandemic, secondary market activities significantly declined during the second quarter of 2020. While the most active of these securities had transactions reported based on new COVID-19 occupancy and financial information, two of the Level III investments only had earlier reported transactions. Therefore, to determine the fair values of these non-traded securities as of June 30, 2020, management reviewed and evaluated multiple data sources as part of management's Level III valuation process and applied significant subjective judgment about the effects of overall market declines during times of economic turmoil to arrive at these valuations. |
INVESTMENTS, Aggregated Summari
INVESTMENTS, Aggregated Summarized Financial Information of Investees (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Aggregated Summarized Financial Information of Investees [Abstract] | |||||
Total Assets | $ 138,553,027 | $ 138,553,027 | $ 104,166,764 | ||
Total Liabilities | 41,190,207 | 41,190,207 | 941,043 | ||
Total Equity | 97,110,980 | 97,110,980 | |||
Total Expenses | 7,198,498 | $ 2,429,395 | $ 5,261,084 | $ 6,248,532 | |
Fair Value Option [Member] | |||||
Aggregated Summarized Financial Information of Investees [Abstract] | |||||
Total Assets | 230,663,168 | 230,663,168 | |||
Total Liabilities | 145,077,360 | 145,077,360 | |||
Total Equity | $ 85,585,809 | 85,585,809 | |||
Total Revenues | 11,641,169 | ||||
Total Expenses | 10,880,536 | ||||
Total Net Income | $ 760,632 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - Variable Interest Entity, Primary Beneficiary [Member] | Jun. 30, 2021USD ($)Entity |
Nonconsolidated Variable Interest Entities [Abstract] | |
Number of unconsolidated VIEs | Entity | 13 |
Total Nonconsolidated VIEs [Abstract] | |
Fair value of investments in VIEs | $ 38,006,233 |
Carrying value of variable interests - assets | 38,529,875 |
Carrying value of variable interests - liabilities | 0 |
Maximum Exposure to Loss [Abstract] | |
Limited Partnership Interest | $ 38,529,875 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2021USD ($)$ / shares | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2021USD ($)Agreement$ / shares | Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($)Component$ / shares | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Oct. 31, 2020USD ($)$ / shares | |||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Number of components | Component | 3 | |||||||||||||||||||||
Price per share (in dollars per share) | $ / shares | $ 10 | $ 10 | $ 10 | $ 7.85 | ||||||||||||||||||
Number of advisory agreements | Agreement | 2 | |||||||||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||||||||||
Total gross invested capital | $ 133,648,965 | $ 134,120,859 | $ 133,997,317 | $ 128,769,486 | $ 128,607,752 | $ 127,070,974 | $ 121,409,289 | $ 115,998,789 | $ 109,263,200 | $ 104,719,872 | $ 98,322,307 | $ 92,435,844 | ||||||||||
Incentive management fee | $ 0 | $ 0 | $ 1,789,870 | |||||||||||||||||||
Income fee | $ 0 | 0 | 0 | |||||||||||||||||||
Capital gain fee | 0 | 0 | 1,789,870 | |||||||||||||||||||
Related Party Expenses [Abstract] | ||||||||||||||||||||||
Asset management fees- the Real Estate Adviser | 1,354,323 | 0 | 0 | 0 | ||||||||||||||||||
Base management fees- the Investment Adviser | 0 | 1,335,376 | 2,549,076 | 2,206,227 | ||||||||||||||||||
Asset acquisition fees- the Real Estate Adviser | [1] | 343,750 | 0 | 0 | 0 | |||||||||||||||||
Portfolio structuring fees- the Investment Adviser | 0 | 6,679 | 588,203 | 707,589 | ||||||||||||||||||
Subordinated Incentive fee - the Advisor | 0 | 0 | 0 | 1,789,870 | ||||||||||||||||||
Administrative cost reimbursements - Mackenzie | 310,400 | 310,400 | 680,000 | 570,667 | ||||||||||||||||||
Transfer agent cost reimbursements - Mackenzie | 61,600 | 61,600 | 80,000 | 23,333 | ||||||||||||||||||
Organization and Offering Cost - Mackenzie | 0 | [2] | 342,015 | [2] | 444,935 | [2] | 550,908 | |||||||||||||||
Other expenses - MacKenzie | [3] | 0 | 0 | 0 | ||||||||||||||||||
Amortization of deferred offering costs | 0 | 342,015 | 880,138 | 556,165 | ||||||||||||||||||
Unpaid as of | ||||||||||||||||||||||
Asset management fees- the Real Estate Adviser | 0 | 0 | 0 | $ 0 | 0 | |||||||||||||||||
Base management fees- the Investment Adviser | 0 | 657,280 | 0 | 0 | 657,280 | |||||||||||||||||
Asset acquisition fees- the Real Estate Adviser | [1] | 0 | 0 | 0 | ||||||||||||||||||
Portfolio structuring fees- the Investment Adviser | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Subordinated Incentive fee - the Advisor | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Administrative cost reimbursements - Mackenzie | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Transfer agent cost reimbursement - Mackenzie | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Organization and Offering Cost - Mackenzie | [2] | 0 | 52,492 | 0 | 0 | 52,492 | ||||||||||||||||
Other expenses - Mackenzie | [3] | 1,937 | 8,492 | 1,937 | 1,937 | 8,492 | ||||||||||||||||
Due to related entities | 1,937 | 718,264 | 1,937 | $ 1,937 | 718,264 | |||||||||||||||||
Offering cost amortized period | 12 months | |||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of dividends | 7.00% | |||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Number of days portfolio structuring services performed after receipt of capital | 15 days | |||||||||||||||||||||
Second Public Offering [Member] | ||||||||||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||||||||||
Total offering costs - Mackenzie | $ 0 | 444,935 | ||||||||||||||||||||
Third Public Offering [Member] | ||||||||||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||||||||||
Total offering costs - Mackenzie | $ 46,136 | $ 550,908 | ||||||||||||||||||||
Cumulative deferred offering costs incurred | $ 624,188 | |||||||||||||||||||||
Mackenzie [Member] | Third Public Offering [Member] | ||||||||||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||||||||||
Cumulative deferred offering costs incurred | 300,212 | $ 300,212 | $ 346,349 | |||||||||||||||||||
Portfolio Structuring Fee [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of asset management fee | 3.00% | |||||||||||||||||||||
Income Incentive Fee [Member] | Minimum [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of contributed capital | 7.00% | |||||||||||||||||||||
Percentage of net investment income | 20.00% | |||||||||||||||||||||
Income Incentive Fee [Member] | Maximum [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of contributed capital | 8.75% | |||||||||||||||||||||
Capital Gains Incentive Fee [Member] | Minimum [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of contributed capital | 7.00% | |||||||||||||||||||||
Percentage of net investment income | 20.00% | |||||||||||||||||||||
Capital Gains Incentive Fee [Member] | Maximum [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of contributed capital | 8.75% | |||||||||||||||||||||
Advisory Agreements [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of acquisition fee | 2.50% | |||||||||||||||||||||
Percentage of incentive management fee | 15.00% | |||||||||||||||||||||
Cumulative distribution percentage to effect incentive management fee | 6.00% | |||||||||||||||||||||
Previous Investment Advisory Agreement [Member] | Third Public Offering [Member] | Minimum [Member] | ||||||||||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||||||||||
Cumulative deferred offering costs incurred | 1,650,000 | $ 1,650,000 | $ 1,650,000 | |||||||||||||||||||
3.0% Annual Base Management Fee [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of asset management fee | 3.00% | |||||||||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||||||||||
Total gross invested capital | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||
3.0% Annual Base Management Fee [Member] | Maximum [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of asset management fee | 3.00% | |||||||||||||||||||||
2.0% Annual Base Management Fee [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of asset management fee | 2.00% | 2.00% | ||||||||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||||||||||
Total gross invested capital | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 | 78,322,307 | 72,435,844 | ||||||||||
1.5% Annual Base Management Fee [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of asset management fee | 1.50% | |||||||||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||||||||||
Total gross invested capital | 33,648,965 | $ 34,120,859 | $ 33,997,317 | $ 28,769,486 | $ 28,607,752 | $ 27,070,974 | $ 21,409,289 | $ 15,998,789 | $ 9,263,200 | $ 4,719,872 | $ 0 | $ 0 | ||||||||||
1.5% Annual Base Management Fee [Member] | Minimum [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Percentage of asset management fee | 1.50% | |||||||||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||||||||||
Total gross invested capital | $ 100,000,000 | |||||||||||||||||||||
Investment Advisor [Member] | Amended and Restated Investment Advisory Agreement [Member] | ||||||||||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||||||||||
Annual fee | $ 100 | |||||||||||||||||||||
Investment Advisor [Member] | Amended and Restated Investment Advisory Agreement [Member] | Third Public Offering [Member] | ||||||||||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||||||||||
Percentage of Broker Fee not Incurred | 10.00% | |||||||||||||||||||||
[1] | Asset acquisition fees paid to the Real Estate Adviser were capitalized as a part of the real estate basis in accordance with the Company policy. | |||||||||||||||||||||
[2] | Offering costs paid by MacKenzie- discussed in Note 6 under organization and offering costs reimbursements. These are amortized over twelve-month period as discussed in Note 2. | |||||||||||||||||||||
[3] | Expenses paid by MacKenzie on behalf of the Company to be reimbursed to MacKenzie. |
RELATED PARTY TRANSACTIONS, Con
RELATED PARTY TRANSACTIONS, Controlled or Affiliated Investments (Predecessor Basis) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | |
MPF Pacific Gateway [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Ownership interest | 15.82% | |
Affiliated Investments [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | $ 15,916,187 | |
Gross additions | 10,955,759 | |
Transfers | 0 | |
Gross reductions | (13,812,455) | |
Net realized gains (losses) | 583,331 | |
Net change in unrealized gains/(losses) | (1,534,938) | |
Fair value at ending balance | 12,107,884 | |
Interest/dividend/other income | 1,011,245 | |
Affiliated Investments [Member] | 5210 Fountaingate, LP [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 552,693 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (126,897) | |
Fair value at ending balance | 425,796 | |
Interest/dividend/other income | 0 | |
Affiliated Investments [Member] | Arrowpoint Burlington LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 1,088,910 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | (1,333,331) | |
Net realized gains (losses) | 583,331 | |
Net change in unrealized gains/(losses) | (338,910) | |
Fair value at ending balance | 0 | |
Interest/dividend/other income | 0 | |
Affiliated Investments [Member] | BP3 Affiliate, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 1,350,000 | |
Gross additions | 318,000 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 0 | |
Fair value at ending balance | 1,668,000 | |
Interest/dividend/other income | 0 | |
Affiliated Investments [Member] | BR Desota Investment Co, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 4,250,000 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | (4,250,000) | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 0 | |
Fair value at ending balance | 0 | |
Interest/dividend/other income | 46,623 | |
Affiliated Investments [Member] | BR Everwood Investment Co, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 0 | |
Gross additions | 3,750,000 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 0 | |
Fair value at ending balance | 3,750,000 | |
Interest/dividend/other income | 479,871 | |
Affiliated Investments [Member] | BR Quinn35 Investment Co, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 4,000,000 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | (4,000,000) | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 0 | |
Fair value at ending balance | 0 | |
Interest/dividend/other income | 167,768 | |
Affiliated Investments [Member] | BR Sunrise Parc Investment Co, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 0 | |
Gross additions | 2,720,911 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 0 | |
Fair value at ending balance | 2,720,911 | |
Interest/dividend/other income | 253,410 | |
Affiliated Investments [Member] | BR Westerly Investment Co, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 0 | |
Gross additions | 4,120,667 | |
Transfers | 0 | |
Gross reductions | (4,120,667) | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 0 | |
Fair value at ending balance | 0 | |
Interest/dividend/other income | 0 | |
Affiliated Investments [Member] | FSP Energy Tower I Corp. Liquidating Trust [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 57,566 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | (49,637) | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 1,881 | |
Fair value at ending balance | 9,810 | |
Interest/dividend/other income | 37,438 | |
Affiliated Investments [Member] | FSP Satellite Place [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 712,585 | |
Gross additions | 41,693 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (221,699) | |
Fair value at ending balance | 532,579 | |
Interest/dividend/other income | 0 | |
Affiliated Investments [Member] | Lakemont Partners, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 1,007,700 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | (58,820) | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (91,720) | |
Fair value at ending balance | 857,160 | |
Interest/dividend/other income | 26,135 | |
Affiliated Investments [Member] | MPF Pacific Gateway [Member] | Class B [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 7,316 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (152) | |
Fair value at ending balance | 7,164 | |
Interest/dividend/other income | 0 | |
Affiliated Investments [Member] | Secured Income L.P. [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 302,009 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (40,095) | |
Fair value at ending balance | 261,914 | |
Interest/dividend/other income | 0 | |
Affiliated Investments [Member] | Summit Healthcare REIT, Inc. [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 2,587,408 | |
Gross additions | 4,488 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (717,346) | |
Fair value at ending balance | 1,874,550 | |
Interest/dividend/other income | 0 | |
Controlled Investments [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 38,488,962 | |
Gross additions | 12,829,579 | |
Transfers | 0 | |
Gross reductions | (5,000,000) | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (2,803,250) | |
Fair value at ending balance | 43,515,291 | |
Interest/dividend/other income | 2,352,153 | |
Controlled Investments [Member] | Addison NC, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 3,600,000 | |
Gross additions | 0 | |
Transfers | (2,000,000) | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (1,600,000) | |
Fair value at ending balance | 0 | |
Interest/dividend/other income | 0 | |
Controlled Investments [Member] | Addison Property Member, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 7,314,855 | |
Gross additions | 0 | |
Transfers | (7,316,326) | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 1,471 | |
Fair value at ending balance | 0 | |
Interest/dividend/other income | 1,176,187 | |
Controlled Investments [Member] | Bishop Berkeley, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 4,051,013 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (196,790) | |
Fair value at ending balance | 3,854,223 | |
Interest/dividend/other income | 69,034 | |
Controlled Investments [Member] | Britannia Preferred Members, LLC [Member] | Class 1 [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 2,986,550 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 519,400 | |
Fair value at ending balance | 3,505,950 | |
Interest/dividend/other income | 0 | |
Controlled Investments [Member] | Britannia Preferred Members, LLC [Member] | Class 2 [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 7,758,915 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (669,316) | |
Fair value at ending balance | 7,089,599 | |
Interest/dividend/other income | 0 | |
Controlled Investments [Member] | Capitol Hill Partners, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 1,852,500 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (383,800) | |
Fair value at ending balance | 1,468,700 | |
Interest/dividend/other income | 0 | |
Controlled Investments [Member] | Citrus Park Hotel Holdings, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 0 | |
Gross additions | 5,000,000 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 0 | |
Fair value at ending balance | 5,000,000 | |
Interest/dividend/other income | 287,500 | |
Controlled Investments [Member] | Coastal Realty Business Trust, REEP, Inc. [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 39,053 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (5,063) | |
Fair value at ending balance | 33,990 | |
Interest/dividend/other income | 0 | |
Controlled Investments [Member] | Dimensions 28, LLP [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 10,886,076 | |
Gross additions | 0 | |
Transfers | 0 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 63,612 | |
Fair value at ending balance | 10,949,688 | |
Interest/dividend/other income | 485,321 | |
Controlled Investments [Member] | MacKenzie Realty Operating Partnership, LP [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 0 | |
Gross additions | 2,829,579 | |
Transfers | 9,316,326 | |
Gross reductions | 0 | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | (532,764) | |
Fair value at ending balance | 11,613,141 | |
Interest/dividend/other income | 0 | |
Controlled Investments [Member] | Sunlit Holdings, LLC [Member] | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value at beginning balance | 0 | |
Gross additions | 5,000,000 | |
Transfers | 0 | |
Gross reductions | (5,000,000) | |
Net realized gains (losses) | 0 | |
Net change in unrealized gains/(losses) | 0 | |
Fair value at ending balance | 0 | |
Interest/dividend/other income | $ 334,111 |
RELATED PARTY TRANSACTIONS, Rel
RELATED PARTY TRANSACTIONS, Related Party Investment Purchases (Details) | 12 Months Ended |
Jun. 30, 2021USD ($)InvestmentFundSecurity$ / sharesshares | |
Related Party Investment Purchases [Abstract] | |
Number of investment funds | InvestmentFund | 2 |
Number of securities in which ownership increased | Security | 2 |
Total price paid | $ 4,260,459 |
Britannia Preferred Members, LLC -Class 1 [Member] | |
Related Party Investment Purchases [Abstract] | |
Purchase price per unit (in dollars per share) | $ / shares | $ 36,250 |
Units purchased (in shares) | shares | 62.52 |
Total price paid | $ 2,266,350 |
Britannia Preferred Members, LLC - Class 2 [Member] | |
Related Party Investment Purchases [Abstract] | |
Purchase price per unit (in dollars per share) | $ / shares | $ 10.40 |
Units purchased (in shares) | shares | 106,000 |
Total price paid | $ 1,102,400 |
FSP Satellite Place [Member] | |
Related Party Investment Purchases [Abstract] | |
Purchase price per unit (in dollars per share) | $ / shares | $ 46,895 |
Units purchased (in shares) | shares | 19.01 |
Total price paid | $ 891,709 |
MARGIN LOANS (Details)
MARGIN LOANS (Details) - Margin Credit Line [Member] - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Line of Credit Facility [Abstract] | ||
Credit facility current borrowing capacity | $ 0 | $ 2,655,155 |
Credit facility remaining borrowing capacity | 0 | 18,770,519 |
Credit facility amount outstanding | $ 0 | $ 0 |
MORTGAGE NOTES PAYABLE AND DE_2
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY (Details) - USD ($) | Feb. 26, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 08, 2020 |
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||
Proceeds from mortgage loan | $ 15,125,000 | |||
Debt, outstanding amount | 23,568,330 | $ 23,568,330 | ||
Contribution Agreement [Member] | ||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||
Debt, face value | $ 25,827,107 | |||
Debt, maturity date | Apr. 30, 2022 | |||
Modified Agreement [Member] | ||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||
Debt, face value | $ 24,404,257 | |||
Debt, interest rate | Federal Funds Rate plus 3.75% | |||
First Republic Bank [Member] | Madison-PVT Partners LLC [Member] | ||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||
Proceeds from mortgage loan | $ 6,737,500 | |||
Fixed interest rate per annum, on notes payable through April 1, 2026 | 3.00% | |||
Period of most recently published yield average that will be used for calculation of interest rates | 12 months | |||
Notes payable, constant maturity period as published by Federal Reserve System | 1 year | |||
Debt, interest rate | H.15 plus 2.75% | |||
Debt, maturity date | Apr. 1, 2031 | |||
Amortization period for monthly payments of principal and interests | 360 months | |||
Debt, outstanding amount | 6,737,500 | $ 6,737,500 | ||
First Republic Bank [Member] | PVT-Madison Partners LLC [Member] | ||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||
Proceeds from mortgage loan | $ 8,387,500 | |||
Fixed interest rate per annum, on notes payable through April 1, 2026 | 3.00% | |||
Period of most recently published yield average that will be used for calculation of interest rates | 12 months | |||
Notes payable, constant maturity period as published by Federal Reserve System | 1 year | |||
Debt, interest rate | H.15 plus 2.75% | |||
Debt, maturity date | Apr. 1, 2031 | |||
Debt, outstanding amount | 8,387,500 | $ 8,387,500 | ||
Wells Fargo Bank [Member] | ||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||
Debt, face value | $ 32,000,000 | $ 32,000,000 | ||
Debt, interest rate | LIBOR plus 3.75% | |||
Debt, maturity date | Nov. 1, 2019 |
FINANCIAL HIGHLIGHTS (PREDECE_3
FINANCIAL HIGHLIGHTS (PREDECESSOR BASIS) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Oct. 31, 2019 | ||
Per share data [Roll Forward] | ||||||||
Beginning net asset value ("NAV") (in dollars per share) | $ 8.04 | $ 9.44 | $ 10.07 | $ 9.84 | $ 9.94 | |||
Net investment income (in dollars per share) | [1] | 0.28 | 0.57 | 0.30 | 0.33 | |||
Net realized gain (in dollars per share) | [1] | 0.15 | 0.12 | 0.36 | 0.31 | |||
Net unrealized gain (loss) (in dollars per share) | [1] | (1.39) | (0.40) | 0.79 | 0.39 | |||
Net increase in net assets resulting from operations (in dollars per share) | $ (0.74) | (0.96) | 0.29 | 1.45 | 1.03 | |||
Issuance of common stock above (below) NAV (in dollars per share) | [1],[2] | 0 | (0.21) | (0.32) | (0.37) | |||
Redemption of common stock below NAV (in dollars per share) | [1],[3] | 0.01 | 0.02 | 0.01 | 0.02 | |||
Dividends to stockholders (in dollars per share) | [1],[4] | (0.45) | (0.73) | (0.91) | (0.78) | |||
Ending NAV (in dollars per share) | $ 8.04 | $ 9.44 | $ 10.07 | $ 9.84 | ||||
Weighted average common Shares outstanding (in shares) | 13,332,536 | 13,020,208 | 12,198,040 | 9,951,816 | 7,440,841 | 5,183,166 | ||
Shares outstanding at the end of period (in shares) | 12,836,608 | 10,926,320 | 8,496,142 | 6,096,773 | ||||
Net assets at the end of period | $ 97,782,730 | $ 103,225,721 | $ 103,115,381 | $ 85,595,319 | $ 59,989,525 | |||
Average net assets | [5] | $ 103,170,551 | $ 94,355,350 | $ 72,792,422 | $ 50,160,858 | |||
Ratios to average net assets [Abstract] | ||||||||
Total expenses | 5.10% | 6.62% | 6.52% | 6.05% | ||||
Net investment income | 3.36% | 5.98% | 3.06% | 3.46% | ||||
Total rate of return | [5],[6] | (11.37%) | 3.06% | 14.79% | 10.67% | |||
Sales commissions and dealer manager fees (in dollars per share) | $ 1.03 | $ 1 | ||||||
[1] | Based on weighted average number of shares of common stock outstanding for the period. | |||||||
[2] | Net of sales commissions and dealer manager fees of $1.00 per share as of October 30, 2019 and $1.03 per share thereafter. | |||||||
[3] | Amounts based on differences between the actual redemption price and the NAVs preceding the redemptions. | |||||||
[4] | Dividends are determined based on taxable income calculated in accordance with income tax regulations which may differ from amounts determined under GAAP. | |||||||
[5] | Average net assets were derived from the beginning and ending period-end net assets. | |||||||
[6] | Total return is based on the net increase (decrease) in net assets resulting from operations divided by average net assets. An individual stockholder's return may vary from this return based on the time of capital transactions. |
EARNINGS PER SHARE, Computation
EARNINGS PER SHARE, Computation of Basic and Diluted Earnings per Share (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||||
Net Income (loss) | $ 264,157 | $ (9,667,137) | $ (11,725,552) | $ 2,885,507 | ||
Basic weighted Average common shares outstanding (in shares) | 13,332,536 | 13,020,208 | 12,198,040 | 9,951,816 | 7,440,841 | 5,183,166 |
Diluted weighted Average common shares outstanding (in shares) | 13,332,535.70 | 13,020,208.16 | 12,198,040.44 | 9,951,815.67 | ||
Basic earnings per share (in dollars per share) | $ 0.02 | $ (0.74) | $ (0.96) | $ 0.29 | ||
Diluted earnings per share (in dollars per share) | $ 0.02 | $ (0.74) | $ (0.96) | $ 0.29 |
SHARE OFFERINGS AND FEES (Detai
SHARE OFFERINGS AND FEES (Details) - USD ($) | Oct. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Sale of Stock [Abstract] | |||||
Shares issued (in shares) | 504,091.15 | 21,720 | 1,943,646 | ||
Proceeds from shares issued | $ 218,439 | $ 218,439 | $ 19,505,452 | $ 23,244,171 | |
Payments of selling commissions and fees | $ 18,060 | $ 1,823,648 | |||
Price per share (in dollars per share) | $ 7.85 | $ 10 | |||
DRIP [Member] | |||||
Sale of Stock [Abstract] | |||||
Shares issued (in shares) | 317,840 | ||||
Proceeds from shares issued | $ 2,891,349 | ||||
Payments of selling commissions and fees | $ 0 |
SHARE REPURCHASE PLAN (Details)
SHARE REPURCHASE PLAN (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Repurchase Plan [Abstract] | ||
Total number of shares repurchased (in shares) | 351,198.37 | |
Total repurchase consideration | $ 3,194,670 | |
April 22, 2021 through May 12, 2021 [Member] | ||
Stock Repurchase Plan [Abstract] | ||
Total number of shares repurchased (in shares) | 68,135.92 | |
Repurchase price per share (in dollars per share) | $ 6 | |
Total repurchase consideration | $ 408,818 | |
August 13, 2019 through September 16, 2019 [Member] | ||
Stock Repurchase Plan [Abstract] | ||
Total number of shares repurchased (in shares) | 70,114.03 | |
Repurchase price per share (in dollars per share) | $ 9 | |
Total repurchase consideration | $ 631,026 | |
November 18, 2019 through December 19, 2019 [Member] | ||
Stock Repurchase Plan [Abstract] | ||
Total number of shares repurchased (in shares) | 102,739.90 | |
Repurchase price per share (in dollars per share) | $ 9 | |
Total repurchase consideration | $ 924,659 | |
February 14, 2020 through March 18, 2020 [Member] | ||
Stock Repurchase Plan [Abstract] | ||
Total number of shares repurchased (in shares) | 178,344.44 | |
Repurchase price per share (in dollars per share) | $ 9.19 | |
Total repurchase consideration | $ 1,638,985 |
STOCKHOLDER DIVIDENDS AND INC_3
STOCKHOLDER DIVIDENDS AND INCOME TAXES, Dividends Declared (Details) - USD ($) | Sep. 13, 2021 | Jul. 09, 2021 | Jun. 30, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | May 10, 2021 |
Dividends Declared [Abstract] | ||||||||||
Dividends payable, holder of record date | May 15, 2021 | |||||||||
Dividends per share (in dollars per share) | $ 0.470 | $ 0.05 | ||||||||
Dividends Amount | $ 5,542,591 | |||||||||
Dividend Declared Q1-2021 [Member] | Subsequent Event [Member] | ||||||||||
Dividends Declared [Abstract] | ||||||||||
Dividends payable date | Oct. 30, 2021 | |||||||||
Dividends declaration date | Sep. 13, 2021 | |||||||||
Dividends per share (in dollars per share) | $ 0.07 | |||||||||
Dividend Declared Q4-2020 [Member] | ||||||||||
Dividends Declared [Abstract] | ||||||||||
Dividends declaration date | Jun. 30, 2021 | |||||||||
Dividends per share (in dollars per share) | $ 0.050 | $ 0.050 | $ 0.050 | |||||||
Dividends Amount | $ 664,714 | |||||||||
Dividend Declared Q4-2020 [Member] | Subsequent Event [Member] | ||||||||||
Dividends Declared [Abstract] | ||||||||||
Dividends payable date | Jul. 26, 2021 | |||||||||
Dividends declaration date | Jul. 9, 2021 | |||||||||
Dividends per share (in dollars per share) | $ 0.06 | |||||||||
Dividend Declared Q1-2019 [Member] | ||||||||||
Dividends Declared [Abstract] | ||||||||||
Dividends declaration date | Sep. 30, 2019 | |||||||||
Dividends per share (in dollars per share) | $ 0.175 | |||||||||
Dividends Amount | $ 1,983,801 | |||||||||
Dividend Declared Q2-2019 [Member] | ||||||||||
Dividends Declared [Abstract] | ||||||||||
Dividends declaration date | Dec. 31, 2019 | |||||||||
Dividends per share (in dollars per share) | $ 0.175 | |||||||||
Dividends Amount | $ 2,096,915 | |||||||||
Dividend Declared Q3-2019 [Member] | ||||||||||
Dividends Declared [Abstract] | ||||||||||
Dividends declaration date | Mar. 31, 2020 | |||||||||
Dividends per share (in dollars per share) | $ 0.120 | |||||||||
Dividends Amount | $ 1,461,875 | |||||||||
DRIP [Member] | ||||||||||
Dividends Declared [Abstract] | ||||||||||
Dividends Amount | $ 204,277 | $ 2,891,349 |
STOCKHOLDER DIVIDENDS AND INC_4
STOCKHOLDER DIVIDENDS AND INCOME TAXES, Income Taxes (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Components of Dividends Paid to Stockholders [Abstract] | ||||
Capital gain | $ 2,415,285 | |||
Ordinary income | 3,085,298 | |||
Return of capital | 24,521 | |||
Total dividends | $ 665,317 | 5,525,104 | $ 5,542,591 | $ 7,237,635 |
Components of Undistributed Earnings on Tax Basis [Abstract] | ||||
Unrealized fair value appreciation | $ 4,813,649 | |||
Aggregate Gross Unrealized Appreciation, Depreciation, and Cost Basis of Investments [Abstract] | ||||
Aggregate gross unrealized appreciation | 4,054,329 | |||
Aggregate gross unrealized depreciation | (12,067,004) | |||
Net unrealized appreciation (depreciation) | (8,012,675) | |||
Aggregate cost (tax basis) | $ 101,717,821 |
Schedule III - Real Estate Pr_2
Schedule III - Real Estate Properties and Accumulated Depreciation (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Real Estate Properties and Accumulated Depreciation [Abstract] | |||
Encumbrances | $ 38,693,330 | ||
Initial Costs [Abstract] | |||
Land | 16,293,591 | ||
Building & Improvements | 38,348,005 | ||
Subsequent Acquisition [Abstract] | |||
Land | 0 | ||
Building & Improvements | 0 | ||
Gross Amount Carried [Abstract] | |||
Total | 54,641,596 | $ 0 | |
Accumulated Depreciation | $ (1,107,466) | $ 0 | |
Addison Corporate Center [Member] | |||
Real Estate Properties and Accumulated Depreciation [Abstract] | |||
Acquisition Date | [1] | Dec. 31, 2020 | |
Encumbrances | $ 23,568,330 | ||
Initial Costs [Abstract] | |||
Land | 6,456,615 | ||
Building & Improvements | 19,108,041 | ||
Subsequent Acquisition [Abstract] | |||
Land | 0 | ||
Building & Improvements | 0 | ||
Gross Amount Carried [Abstract] | |||
Total | 25,564,656 | ||
Accumulated Depreciation | $ (914,064) | ||
Commodore Apartment Building [Member] | |||
Real Estate Properties and Accumulated Depreciation [Abstract] | |||
Acquisition Date | Mar. 5, 2021 | ||
Encumbrances | $ 6,737,500 | ||
Initial Costs [Abstract] | |||
Land | 5,519,963 | ||
Building & Improvements | 7,488,715 | ||
Subsequent Acquisition [Abstract] | |||
Land | 0 | ||
Building & Improvements | 0 | ||
Gross Amount Carried [Abstract] | |||
Total | 13,008,678 | ||
Accumulated Depreciation | $ (83,937) | ||
Pon Do Leo Apartment Building [Member] | |||
Real Estate Properties and Accumulated Depreciation [Abstract] | |||
Acquisition Date | Mar. 5, 2021 | ||
Encumbrances | $ 8,387,500 | ||
Initial Costs [Abstract] | |||
Land | 4,317,013 | ||
Building & Improvements | 11,751,249 | ||
Subsequent Acquisition [Abstract] | |||
Land | 0 | ||
Building & Improvements | 0 | ||
Gross Amount Carried [Abstract] | |||
Total | 16,068,262 | ||
Accumulated Depreciation | $ (109,465) | ||
[1] | Date the Company consolidated the underlying entity that owns the property |
Schedule III - Real Estate Pr_3
Schedule III - Real Estate Properties and Accumulated Depreciation, Summary of Activity (Details) | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Real Estate [Roll Forward] | |
Balance at the beginning of the year | $ 0 |
Additions- acquisitions | 54,641,596 |
Balance at end of the year | 54,641,596 |
Accumulated Depreciation [Roll Forward] | |
Balance at the beginning of the year | 0 |
Depreciation expense | 1,107,466 |
Balance at end of the year | $ 1,107,466 |