Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2023 | May 15, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 000-55006 | |
Entity Registrant Name | MacKenzie Realty Capital, Inc. | |
Entity Central Index Key | 0001550913 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 45-4355424 | |
Entity Address, Address Line One | 89 Davis Road, Suite 100 | |
Entity Address, City or Town | Orinda | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94563 | |
City Area Code | 925 | |
Local Phone Number | 631-9100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,299,268.79 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Real estate assets | ||
Land | $ 37,744,154 | $ 32,117,072 |
Building, fixtures and improvements | 131,216,280 | 64,182,548 |
Intangible lease assets | 8,176,723 | 2,889,828 |
Less: accumulated depreciation and amortization | (5,506,114) | (1,768,130) |
Total real estate assets, net | 171,631,043 | 97,421,318 |
Cash and cash equivalents | 17,582,046 | 7,400,163 |
Restricted cash | 906,312 | 1,092,816 |
Investments, at fair value | 15,007,329 | 19,748,208 |
Unconsolidated investment (non-security), at fair value | 9,711,664 | 37,845,036 |
Investments income, rents and other receivables | 957,012 | 1,499,214 |
Prepaid expenses and other assets | 1,195,286 | 67,625 |
Assets held for sale, net | 10,336,259 | 17,490,581 |
Total assets | 227,326,951 | 182,564,961 |
Liabilities | ||
Mortgage notes payable, net | 113,236,270 | 68,370,415 |
Notes payable | 1,658,075 | 0 |
Deferred rent and other liabilities | 1,190,732 | 443,014 |
Finance lease liabilities | 642,483 | 0 |
Dividend payable | 1,918,140 | 1,419,913 |
Accounts payable and accrued liabilities | 1,624,829 | 2,938,689 |
Stock redemption payable | 434,656 | 348,051 |
Below-market lease liabilities, net | 1,534,950 | 1,063,579 |
Due to related entities | 193,423 | 214,094 |
Contingent liability | 1,503,000 | 2,715,000 |
Capital pending acceptance | 549,400 | 85,000 |
Liabilities held for sale | 1,649,272 | 744,989 |
Total liabilities | 126,135,230 | 78,342,744 |
Equity | ||
Common stock, $0.0001 par value, 80,000,000 shares authorized; 13,241,026.32 and 13,253,571.98 shares issued and outstanding as of March 31, 2023 and June 30, 2022, respectively. | 1,324 | 1,325 |
Preferred stock, $0.0001 par value, 20,000,000 shares authorized, 588,577.64 and 119,416.91 shares issued and outstanding as of March 31, 2023 and June 30, 2022, respectively. | 59 | 12 |
Capital in excess of par value | 132,061,537 | 121,961,699 |
Accumulated deficit | (42,874,199) | (24,108,723) |
Total stockholders' equity | 89,188,721 | 97,854,313 |
Non-controlling interests | 12,003,000 | 6,367,904 |
Total equity | 101,191,721 | 104,222,217 |
Total liabilities and equity | $ 227,326,951 | $ 182,564,961 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Jun. 30, 2022 |
Equity | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, issued (in shares) | 13,241,026.32 | 13,253,571.98 |
Common stock, shares outstanding (in shares) | 13,241,026.32 | 13,253,571.98 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 588,577.64 | 119,416.91 |
Preferred stock, shares outstanding (in shares) | 588,577.64 | 119,416.91 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | ||||
Rental and reimbursements | $ 4,469,869 | $ 2,518,643 | $ 11,212,624 | $ 7,811,439 |
Expenses | ||||
Property operating and maintenance | 2,536,750 | 1,473,136 | 6,655,721 | 4,709,611 |
Interest expense | 1,907,854 | 572,490 | 5,171,262 | 1,417,992 |
Depreciation and amortization | 1,662,359 | 1,146,495 | 3,737,983 | 3,225,189 |
Asset management fees to related party (Note 8) | 767,299 | 680,678 | 2,225,085 | 2,034,852 |
Administrative cost reimbursements to related party (Note 8) | 181,500 | 152,400 | 544,500 | 457,200 |
General and administrative | 283,005 | 248,001 | 563,847 | 398,790 |
Professional fees | 108,586 | 62,977 | 486,135 | 424,168 |
Directors' fees | 25,500 | 25,500 | 80,500 | 81,500 |
Transfer agent cost reimbursements to related party (Note 8) | 23,000 | 26,600 | 69,000 | 79,801 |
Total operating expenses | 7,495,853 | 4,388,277 | 19,534,033 | 12,829,103 |
Operating loss | (3,025,984) | (1,869,634) | (8,321,409) | (5,017,664) |
Other income (loss) | ||||
Dividend and distribution income from equity securities at fair value | 111,261 | 858,357 | 316,577 | 2,237,434 |
Net unrealized loss on equity securities at fair value | (238,559) | (3,838,217) | (1,312,612) | (876,882) |
Net income (loss) from equity method investments at fair value | (877,592) | 5,404,473 | 2,756,382 | 9,339,034 |
Net realized gain from investments | 0 | 5,109,713 | 830,964 | 9,462,904 |
Impairment loss on assets held for sale | (6,207,743) | 0 | (8,121,089) | 0 |
Net income (loss) | (10,238,617) | 5,664,692 | (13,851,187) | 15,144,826 |
Net (income) loss attributable to non-controlling interests | (46,122) | 60,261 | (93,210) | 90,523 |
Net (income) attributable to preferred stockholders | (209,620) | (18,507) | (453,413) | (18,947) |
Net income (loss) attributable to common stockholders | $ (10,494,359) | $ 5,706,446 | $ (14,397,810) | $ 15,216,402 |
Net income (loss) per share attributable to common stockholders (in dollars per share) | $ (0.79) | $ 0.43 | $ (1.08) | $ 1.14 |
Weighted average common shares outstanding (in shares) | 13,283,622 | 13,377,201 | 13,282,666.75 | 13,359,538.6 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Parent [Member] | Non-controlling Interests [Member] | Total | ||
Balance at Jun. 30, 2021 | $ 1,332 | $ 0 | $ 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 | 0 | |||||||
Distributions to non-controlling interest holders | $ 0 | $ 0 | 0 | 0 | 0 | (9,146) | (9,146) | ||
Dividends to common stockholders | 0 | 0 | 0 | (3,993,935) | (3,993,935) | 0 | (3,993,935) | ||
Dividends to preferred stockholders | 0 | 0 | 0 | (18,947) | (18,947) | 0 | (18,947) | ||
Net income (loss) | 0 | 0 | 0 | 15,235,349 | 15,235,349 | (90,523) | 15,144,826 | ||
Operating Partnership Class A conversion to common stock | $ 0 | [1] | $ 0 | 2,175 | 0 | 2,175 | (2,175) | 0 | |
Operating Partnership Class A conversion to common stock (in shares) | 212.19 | 0 | |||||||
Issuance of preferred stock | $ 0 | $ 8 | [1] | 1,984,492 | 0 | 1,984,500 | 0 | 1,984,500 | |
Issuance of preferred stock (in shares) | 80,014.57 | ||||||||
Issuance of common stock through reinvestment of dividends | $ 9 | $ 0 | 839,601 | 0 | 839,610 | 0 | 839,610 | ||
Issuance of common stock through reinvestment of dividends (in shares) | 91,013.94 | 0 | |||||||
Issuance of preferred stock through reinvestment of dividends | $ 0 | $ 0 | 75 | 0 | 75 | 0 | 75 | ||
Issuance of preferred stock through reinvestment of dividends (in shares) | 0 | 3.33 | |||||||
Payment of selling commissions and fees | $ 0 | $ 0 | (672,460) | 0 | (672,460) | 0 | (672,460) | ||
Redemption of common stock | $ (13) | $ 0 | (1,204,565) | 0 | (1,204,578) | 0 | (1,204,578) | ||
Redemption of common stock (in shares) | (131,285.03) | 0 | |||||||
Contributions by non-controlling interest holders | $ 0 | $ 0 | 0 | 0 | 0 | 856,364 | 856,364 | ||
Balance at Mar. 31, 2022 | $ 1,328 | $ 8 | 121,357,823 | (12,076,390) | 109,282,769 | 1,006,360 | 110,289,129 | ||
Balance (in shares) at Mar. 31, 2022 | 13,276,367.89 | 80,017.9 | |||||||
Balance at Dec. 31, 2021 | $ 1,337 | $ 0 | [1] | 120,536,198 | (16,588,995) | 103,948,540 | 1,071,628 | 105,020,168 | |
Balance (in shares) at Dec. 31, 2021 | 13,367,871.16 | 3,520 | |||||||
Distributions to non-controlling interest holders | $ 0 | 0 | 0 | 0 | (2,832) | (2,832) | |||
Dividends to common stockholders | 0 | 0 | (1,193,841) | (1,193,841) | 0 | (1,193,841) | |||
Dividends to preferred stockholders | 0 | 0 | (18,507) | (18,507) | 0 | (18,507) | |||
Net income (loss) | $ 0 | 0 | 0 | 5,724,953 | 5,724,953 | (60,261) | 5,664,692 | ||
Operating Partnership Class A conversion to common stock | $ 0 | [1] | $ 0 | 2,175 | 0 | 2,175 | (2,175) | 0 | |
Operating Partnership Class A conversion to common stock (in shares) | 212.19 | 0 | |||||||
Issuance of preferred stock | $ 0 | $ 8 | [1] | 1,896,492 | 0 | 1,896,500 | 0 | 1,896,500 | |
Issuance of preferred stock (in shares) | 0 | 76,494.57 | |||||||
Issuance of common stock through reinvestment of dividends | $ 3 | $ 0 | 313,297 | 0 | 313,300 | 0 | 313,300 | ||
Issuance of common stock through reinvestment of dividends (in shares) | 33,961.7 | 0 | |||||||
Issuance of preferred stock through reinvestment of dividends | $ 0 | $ 0 | 75 | 0 | 75 | 0 | 75 | ||
Issuance of preferred stock through reinvestment of dividends (in shares) | 0 | 3.33 | |||||||
Payment of selling commissions and fees | $ 0 | $ 0 | (241,036) | 0 | (241,036) | 0 | (241,036) | ||
Redemption of common stock | $ (12) | $ 0 | (1,149,378) | 0 | (1,149,390) | 0 | (1,149,390) | ||
Redemption of common stock (in shares) | (125,677.16) | 0 | |||||||
Balance at Mar. 31, 2022 | $ 1,328 | $ 8 | 121,357,823 | (12,076,390) | 109,282,769 | 1,006,360 | 110,289,129 | ||
Balance (in shares) at Mar. 31, 2022 | 13,276,367.89 | 80,017.9 | |||||||
Balance at Jun. 30, 2022 | $ 1,325 | $ 12 | 121,961,699 | (24,108,723) | 97,854,313 | 6,367,904 | 104,222,217 | ||
Balance (in shares) at Jun. 30, 2022 | 13,253,571.98 | 119,416.91 | |||||||
Distributions to non-controlling interest holders | $ 0 | $ 0 | 0 | 0 | 0 | (439,668) | (439,668) | ||
Operating Partnership Preferred Units issued | 0 | 0 | 0 | 0 | 0 | 5,953,935 | 5,953,935 | ||
Dividends to common stockholders | 0 | 0 | 0 | (4,367,666) | (4,367,666) | (4,367,666) | |||
Dividends to preferred stockholders | 0 | 0 | 0 | (453,413) | (453,413) | (453,413) | |||
Net income (loss) | 0 | 0 | 0 | (13,944,397) | (13,944,397) | 93,210 | (13,851,187) | ||
Operating Partnership Class A conversion to common stock | $ 0 | [1] | $ 0 | 1,739 | 0 | 1,739 | (1,739) | 0 | |
Operating Partnership Class A conversion to common stock (in shares) | 169.67 | 0 | |||||||
Issuance of preferred stock | $ 47 | 11,449,448 | 0 | 11,449,495 | 0 | 11,449,495 | |||
Issuance of preferred stock (in shares) | 468,425.07 | ||||||||
Issuance of common stock through reinvestment of dividends | $ 13 | 1,208,896 | 0 | 1,208,909 | 0 | 1,208,909 | |||
Issuance of common stock through reinvestment of dividends (in shares) | 131,046.97 | ||||||||
Issuance of preferred stock through reinvestment of dividends | $ 0 | [1] | 39,988 | 0 | 39,988 | 0 | 39,988 | ||
Issuance of preferred stock through reinvestment of dividends (in shares) | 735.66 | ||||||||
Payment of selling commissions and fees | $ 0 | $ 0 | (1,363,238) | 0 | (1,363,238) | 0 | (1,363,238) | ||
Redemption of common stock | $ (14) | $ 0 | (1,236,995) | 0 | (1,237,009) | 0 | (1,237,009) | ||
Redemption of common stock (in shares) | (143,762.3) | 0 | |||||||
Issuance Operating Partnership Preferred Units through Reinvestment of Dividends | $ 0 | $ 0 | 0 | 0 | 0 | 29,358 | 29,358 | ||
Balance at Mar. 31, 2023 | $ 1,324 | $ 59 | 132,061,537 | (42,874,199) | 89,188,721 | 12,003,000 | 101,191,721 | ||
Balance (in shares) at Mar. 31, 2023 | 13,241,026.32 | 588,577.64 | |||||||
Balance at Dec. 31, 2022 | $ 1,325 | $ 51 | 130,274,766 | (30,858,855) | 99,417,287 | 8,884,148 | 108,301,435 | ||
Balance (in shares) at Dec. 31, 2022 | 13,254,497.43 | 505,115.06 | |||||||
Distributions to non-controlling interest holders | $ 0 | $ 0 | 0 | 0 | 0 | (187,520) | (187,520) | ||
Operating Partnership Preferred Units issued | 0 | 0 | 0 | 0 | 3,242,557 | 3,242,557 | |||
Dividends to common stockholders | 0 | 0 | 0 | (1,520,985) | (1,520,985) | (1,520,985) | |||
Dividends to preferred stockholders | 0 | 0 | 0 | (209,620) | (209,620) | (209,620) | |||
Net income (loss) | 0 | 0 | 0 | (10,284,739) | (10,284,739) | 46,122 | (10,238,617) | ||
Issuance of preferred stock | $ 8 | 2,046,487 | 0 | 2,046,495 | 0 | 2,046,495 | |||
Issuance of preferred stock (in shares) | 83,462.58 | ||||||||
Issuance of common stock through reinvestment of dividends | $ 5 | 419,044 | 0 | 419,049 | 0 | 419,049 | |||
Issuance of common stock through reinvestment of dividends (in shares) | 45,425.34 | ||||||||
Issuance of preferred stock through reinvestment of dividends | $ 0 | 23,436 | 0 | 23,436 | 0 | 23,436 | |||
Issuance of preferred stock through reinvestment of dividends (in shares) | 0 | ||||||||
Payment of selling commissions and fees | $ 0 | $ 0 | (267,546) | 0 | (267,546) | 0 | (267,546) | ||
Redemption of common stock | $ (6) | $ 0 | (434,650) | 0 | (434,656) | 0 | (434,656) | ||
Redemption of common stock (in shares) | (58,896.45) | 0 | |||||||
Issuance Operating Partnership Preferred Units through Reinvestment of Dividends | $ 0 | $ 0 | 0 | 0 | 0 | 17,693 | 17,693 | ||
Balance at Mar. 31, 2023 | $ 1,324 | $ 59 | $ 132,061,537 | $ (42,874,199) | $ 89,188,721 | $ 12,003,000 | $ 101,191,721 | ||
Balance (in shares) at Mar. 31, 2023 | 13,241,026.32 | 588,577.64 | |||||||
[1]Amount is less than $1.*Amount is less than $1. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Cash flows from operating activities: | |||||
Net income (loss) | $ (10,238,617) | $ 5,664,692 | $ (13,851,187) | $ 15,144,826 | |
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||||
Net unrealized loss on equity securities at fair value | 238,559 | 3,838,217 | 1,312,612 | 876,882 | |
Net income (loss) from equity method investments at fair value | (1,478,779) | (7,053,372) | |||
Net realized gain on investments | 0 | (5,109,713) | (830,964) | (9,462,904) | |
Loss on disposal of fixed assets | 3,604 | 0 | |||
Impairment loss on assets held for sale | 6,207,743 | 0 | 8,121,089 | 0 | |
Straight - line rent | (41,920) | (418,951) | |||
Depreciation and amortization | 3,737,983 | 3,225,189 | |||
Amortization of deferred financing costs | 451,433 | 14,320 | |||
Accretion of market lease and other intangibles, net | (167,555) | (121,881) | |||
Changes in assets and liabilities: | |||||
Investments income, rent and other receivables | 1,138,360 | 160,959 | |||
Due from related entities | 0 | (27,001) | |||
Prepaid expenses and other assets | (1,287,821) | (199,924) | |||
Deferred rent and other liabilities | (318,917) | 22,483 | |||
Accounts payable and accrued liabilities | (1,323,635) | 505,626 | |||
Due to related entities | (377,581) | 74,741 | |||
Net cash from operating activities | (4,913,278) | 2,740,993 | |||
Cash flows from investing activities: | |||||
Proceeds from sale of and sales distribution from investments | 13,225,365 | 30,333,194 | |||
Investment acquisition advance | 0 | (900,000) | |||
Investments in real estate assets | (17,944,745) | (22,851,479) | |||
Purchase of investments | (303,884) | (13,786,878) | |||
Return of capital distributions | 12,282,338 | 22,250,314 | |||
Payment on contingent liability | (1,154,125) | 0 | |||
Net cash from investing activities | 6,104,949 | 15,045,151 | |||
Cash flows from financing activities: | |||||
Proceeds from mortgage notes payable | 3,034,349 | 16,129,689 | |||
Payments on mortgage notes payable | (455,400) | (1,294,879) | |||
Proceeds on notes payable | 9,632 | 0 | |||
Payments on notes payable | (12,388) | 0 | |||
Payment of deferred financing cost | 0 | (784,327) | |||
Dividend to stockholders | (3,203,432) | (1,960,849) | |||
Proceeds from issuance of preferred stock | 11,449,495 | 1,984,500 | |||
Payment of finance lease liabilities | (16,213) | 0 | |||
Payment of selling commissions and fees | (1,005,925) | (523,032) | |||
Contributions by non-controlling interests holders | 0 | 856,364 | |||
Distributions to non-controlling interests holders | (280,835) | (8,068) | |||
Redemption of common stock, net of redemptions payable | (1,150,404) | (162,884) | |||
Capital pending acceptance | 464,400 | 10,000 | |||
Net cash from financing activities | 8,833,279 | 14,246,514 | |||
Net increase in cash, cash equivalents and restricted cash | 10,024,950 | 32,032,658 | |||
Cash, cash equivalents and restricted cash at beginning of the period | 8,998,165 | 7,753,553 | $ 7,753,553 | ||
Cash, cash equivalents and restricted cash at end of the period | 19,023,115 | 39,786,211 | 19,023,115 | 39,786,211 | 8,998,165 |
Cash and cash equivalents at end of the period | 17,582,046 | 31,399,223 | 17,582,046 | 31,399,223 | 7,400,163 |
Restricted cash at end of the period | 906,312 | 5,570,020 | 906,312 | 5,570,020 | $ 1,092,816 |
Cash and restricted cash at end of the period classified as assets held for sale | $ 534,757 | $ 2,816,968 | 534,757 | 2,816,968 | |
Supplemental disclosure of non-cash financing activities and other cash flow information | |||||
Issuance of common stock through reinvestment of dividends | 1,208,909 | 839,610 | |||
Issuance of preferred stock through reinvestment of dividends | 39,988 | 75 | |||
Written off Contingent Consideration | 57,875 | 0 | |||
Cash paid for interest | 3,759,832 | 1,174,261 | |||
First & Main, LP [Member] | |||||
Supplemental disclosure of non-cash financing activities and other cash flow information | |||||
Issuance of the Operating Partnership Preferred units for the purchase of interest (Note 1) | 2,711,378 | 0 | |||
Fair value of assets acquired from consolidation | 18,507,861 | 0 | |||
Fair value of liabilities assumed from consolidation | 13,559,483 | 0 | |||
Main Street West, LP [Member] | |||||
Supplemental disclosure of non-cash financing activities and other cash flow information | |||||
Issuance of the Operating Partnership Preferred units for the purchase of interest (Note 1) | 3,242,557 | 0 | |||
Fair value of assets acquired from consolidation | 20,699,145 | 0 | |||
Fair value of liabilities assumed from consolidation | 16,119,679 | 0 | |||
1300 Main, LP [Member] | |||||
Supplemental disclosure of non-cash financing activities and other cash flow information | |||||
Fair value of assets acquired from consolidation | 10,546,464 | 0 | |||
Fair value of liabilities assumed from consolidation | 8,753,242 | 0 | |||
Woodland Corporate Center Two, LP [Member] | |||||
Supplemental disclosure of non-cash financing activities and other cash flow information | |||||
Fair value of assets acquired from consolidation | 11,538,400 | 0 | |||
Fair value of liabilities assumed from consolidation | $ 8,295,843 | $ 0 |
PRINCIPAL BUSINESS AND ORGANIZA
PRINCIPAL BUSINESS AND ORGANIZATION | 9 Months Ended |
Mar. 31, 2023 | |
PRINCIPAL BUSINESS AND ORGANIZATION [Abstract] | |
PRINCIPAL BUSINESS AND ORGANIZATION | NOTE 1 – PRINCIPAL BUSINESS AND ORGANIZATION MacKenzie Realty Capital, Inc. (the “Parent Company” together with its subsidiaries as discussed below, the “Company ,” “we,” “us,” or “our ) was incorporated under the general corporation laws of the State of Maryland on January 25, 2012. We were 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”). We withdrew our election to be treated as a BDC on December 31, 2020. We have 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”). We are 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. We filed our initial registration statement in June 2012 with the Securities and Exchange Commission (“SEC”) to register the initial public offering of 5,000,000 shares of our common stock. The initial public offering commenced in January 2014 and concluded in October 2016. We filed a second registration statement with the SEC to register a subsequent public offering of 15,000,000 shares of our common stock. The second offering commenced in December 2016 and concluded on October 28, 2019. We filed a third registration statement with the SEC to register a public offering of 15,000,000 shares of our 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 our outstanding common stock authorized our Board of Directors to withdraw our election to be regulated as a BDC under the 1940 Act. The withdrawal was effective with the SEC on December 31, 2020, when we filed the appropriate form with the SEC. 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. We terminated TRS effective December 31, 2022, after the sale of its sole investment and transferred the ownership of MacKenzie NY 2 to the Parent Company. The financial statements of MacKenzie NY 2 have been consolidated with the Parent Company. On May 20, 2020, we formed an operating partnership, MacKenzie Realty Operating Partnership, LP (the “Operating Partnership”) for the purpose of acquiring and operating real estate assets. As of March 31, 2023 In March 2021, we, together with our 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. We own 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. We are the controlling majority owner of both companies; therefore, effective March 31, 2021, we have consolidated the financial statements of these companies. On April 13, 2021, we filed a preliminary offering circular (the “Offering Circular”) pursuant to Regulation A with the SEC to sell up to $50,000,000 of shares of our Series A preferred stock at an initial offering price of $25.00 per share. The sale of shares pursuant to this offering began in November 2021 after the definitive version of the Offering Circular was qualified by the SEC on November 2, 2021. We filed a post-effective amendment to the Offering Circular on October 14, 2022, and increased the offering to sell up to $75 million of shares of our Series A preferred stock. The post-effective amendment to this Offering Circular was declared effective on November 13, 2022. On October 4, 2021, through the Operating Partnership, we acquired a 90% economic interest in Hollywood Hillview Owner, LLC (“Hollywood Hillview”), On January 25, 2022, through the Operating Partnership, we acquired a 98% limited liability company interest in MacKenzie BAA IG Shoreline LLC (“MacKenzie Shoreline”), formed to acquire, renovate, and own the 84-unit multifamily building located at 1841 Laguna Street, Concord, CA. The joint venture partners own the remaining 2% of the limited liability company interest as well as a carried interest. We are the controlling majority owner of the MacKenzie Shoreline; therefore, effective June 30, 2022, we have consolidated the financial statements of MacKenzie Shoreline. On April 1, 2022, we, and our newly formed, wholly owned subsidiary, FSP Merger Sub, Inc. (“Merger Sub”) entered into a reverse triangular merger agreement with FSP Satellite Place Corp. (“FSP Satellite”), pursuant to which the Merger Sub would be merged with and into FSP Satellite with FSP Satellite as the surviving entity, but renamed MacKenzie Satellite Place Corp. (“MacKenzie Satellite”). On June 1, 2022, the merger closed, and MacKenzie Satellite became a wholly owned subsidiary of us, which in turn owns the Satellite Place Office Building, a six-story Class “A” suburban office building containing approximately 134,785 rentable square feet of space located on approximately 10 acres of land in Duluth, GA. The former shareholders of FSP Satellite received cash or shares of the Company, based upon their election. All former shareholders of FSP Satellite holders elected to be paid in cash with the exception of two shareholders who elected to receive common and preferred stocks in the amount of $27,503 and $13,752, respectively. Subsequent to the completion of the merger, we have consolidated the financial statements of MacKenzie Satellite effective June 30, 2022. On May 6, 2022, the Operating Partnership purchased 100% of the membership interests in eight limited liability companies (“Management Companies”) and one parcel of entitled land from The Wiseman Company, LLC (“Wiseman”) for $18,333,000 and $3,050,000, respectively. The limited liability companies own the general partnership interests in eight limited partnerships, each of which own a Class A or B office property in Napa, Fairfield, or Woodland, California (the “Wiseman Properties”). Each Management Company is the sole general partner of each of the limited partnerships. The membership interest purchase price is subject to adjustments and holdbacks as provided in the membership interest purchase agreement. As part of the purchase agreement, $4,650,000 of the purchase price was paid through the issuance of 206,666.67 Preferred Units of the Operating Partnership and $750,000 of the land purchase price was paid through the issuance of 77,881.62 Class A units of the Operating Partnership. Further details of this acquisition are discussed in Note 5. We have consolidated the financial statements of the eight limited liability companies, which hold the general partnership interests in the limited partnerships, effective June 30, 2022. Wiseman is a full-service real estate syndicator, developer, broker, and property manager. It was founded in 1979 and served as the general partner for nine currently active partnerships owning the Wiseman Properties. Concurrently with acquiring the general partnership interests in the Wiseman Properties, the Operating Partnership also negotiated the right to acquire the limited partnership interest in each Wiseman Property at pre-determined prices over the following two years. Management believes this transaction is strategically important as it focuses the portfolio on our desired geographic area (Western United States) and creates a captive pipeline of properties which we can acquire when convenient over the next two years. On July 29, 2022, in addition to the general partnership interest in First & Main, LP (“First & Main”), the Operating Partnership completed the acquisition of 100% of the limited partnership interest in First & Main for total purchase price of $3,376,322, of which $2,711,378 was paid through issuance of 120,505.66 Preferred Units of the Operating Partnership. We consolidated the financial statements of First & Main during the quarter ended September 30, 2022. On October 1, 2022, in addition to the general partnership interest in 1300 Main, LP (“1300 Main”), the Operating Partnership completed the acquisition of 100% of the limited partnership interest in 1300 Main for total purchase price of $6,480,582. We consolidated the financial statements of 1300 Main during the quarter ended December 31, 2022. On January 3, 2023, the Operating Partnership completed the acquisition of 100% of the limited partnership interest in Woodland Corporate Center Two, LP (“Woodland Corporate Center Two”) for total purchase price of $5,636,966, of which $3,242,557 was paid through the issuance of 144,113.63 Preferred Units of the Operating Partnership. On February 1, 2023, the Operating Partnership completed the acquisition of 100% of the limited partnership interest in Main Street West, LP (“Main Street West”) for total purchase price of $8,277,016. We consolidated the financial statements of Woodland Corporate Center Two and Main Street West during the quarter ended March 31, 2023. On February 6, 2023, we formed a new entity, MRC Aurora, LLC (the “MRC Aurora”) for the purpose of owning, developing, renovating, leasing, managing, renting, and potentially selling certain real property and building and improvements located at 5000 Wiseman Way, Fairfield, California (the “Project”). The Parent Company is the manager and the Operating Partnership is the sole common member of MRC Aurora. The Operating Partnership contributed the entitled land located at 5000 Wiseman Way, Fairfield, California in exchange for the common membership interest. MRC Aurora plans to raise $10 million in preferred capital and also obtain a construction loan to fund the development of the Project. As of March 31, 2023, MRC Aurora has not commenced selling the preferred units, making the Operating Partnership the sole equity holder of MRC Aurora. Therefore, we have consolidated the financial statements of MRC Aurora during the quarter ended March 31, 2023. W As of March 31, 2023, we have raised approximately $119.10 million from our three common stock public offerings and $14.41 million from our Series A preferred stock offering pursuant to the Offering Circular. As of March 31, 2023 March 31, 2023 On February 27, 2023, we have announced the updated net asset value (“NAV”) of our common shares as of December 31, 2022. As a result, our Board of Directors has lowered the price of the common shares issued under DRIP to $7.38 per share, the new NAV. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2023 | |
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-Q and Regulation S-X. We follow the accounting principles generally accepted in the United States of America (“GAAP”) and includes the accounts of our wholly owned consolidated subsidiaries and majority-owned controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements reflect all normal recurring adjustments, which are, in the opinion of management, necessary for the fair presentation of our results for the interim periods presented. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2022, included in our annual report on Form 10-K filed with the SEC. Certain prior period information has been reclassified to conform to the prior year end presentation. The reclassification has no effect on our consolidated balance sheet or the consolidated statement of operations as previously reported. There have been no changes in the significant accounting policies from those disclosed in the audited financial statements for the year ended June 30, 2022, other than those expanded upon and described herein. 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. Cash, Cash Equivalents and Restricted Cash Our cash and cash equivalents represent current bank accounts and other bank deposits free of encumbrances and having maturity dates of three months or less from the respective dates of deposit. We limit cash investments to financial institutions with high credit standing; therefore, we believe our cash investments are not exposed to any significant credit risk. The restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, and 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 us may exceed these insured limits. Restricted cash is subject to legal or contractual restrictions as to withdrawal or use, including restrictions that require the funds to be used for a specified purpose and restrictions that limit the purpose for which the funds can be used. Investments Income Receivable Investment income 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. We monitor and adjust our receivables, and those deemed to be uncollectible are written-off only after all reasonable collection efforts are exhausted. We have determined that all investments income receivable balances outstanding as of March 31, 2023 and June 30, 2022, are collectible and do not require recording any uncollectible allowance. Rents and Other Receivables We 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. We exercise judgment in establishing these allowances and consider payment history and current credit status of tenants in developing these estimates. We have determined that all rent receivable balances outstanding as of March 31, 2023 and June 30, 2022, are collectible and do not require recording any uncollectible allowance. Capital Pending Acceptance We conduct closings for new purchases of our common stock twice per month and admits new stockholders effective beginning the first of each month. Subscriptions are effective only upon our 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 balance sheets. As of March 31, 2023 and June 30, 2022, capital pending acceptance was $549,400 and $85,000, respectively. 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, 2021. Therefore, it did not incur any tax expense or excise tax on its income from operations during the quarterly periods within the tax year 2021. Similarly, for the tax year 2022, 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 2022. TRS and MacKenzie NY 2 are subject to corporate federal and state income tax on their taxable income at regular statutory rates. As discussed in Note 1, TRS terminated effective December 31, 2022. As of December 31, 2022, they did not have material taxable income for tax year 2022. Therefore, TRS, and MacKenzie NY 2 did not record any income tax provisions during any fiscal period within the tax year 2022. As of March 31, 2023, MacKenzie NY 2, as a taxable corporate subsidiary of the Parent Company, did not have any taxable income. Therefore, we did not record any tax provisions for tax year 2023. MacKenzie Satellite is a qualified REIT subsidiary of the Parent Company. Therefore, it does not file a separate tax return. The Operating Partnership is a limited partnership and its subsidiaries Addison Property Owner, LLC (the “Addison Property Owner”), Hollywood Hillview, MacKenzie Shoreline and MRC Aurora are limited liability companies. Madison and PVT are also limited liability companies. First & Main, 1300 Main, Main Street West and Woodland Corporate Center Two are limited partnerships. 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. We follow ASC 740, Income Taxes Subsequent Events Subsequent events are events or transactions that occur after the date of the consolidated balance sheets 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 balance sheets are considered in the preparation of the consolidated financial statements presented herein. Subsequent events that occur after the date of the consolidated balance sheets that do not provide evidence about the conditions that existed as of the date of the consolidated statements of changes in equity are considered for disclosure based upon their significance in relation to our 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. We believe that the carrying amounts of our 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 based on their nature, terms, and interest rates. Equity Securities We have minority and non-controlling equity investments in various limited partnerships and non-traded entities, which do not have readily determinable fair values. We do 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 We 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 our 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 in the consolidated balance sheets as of March 31, 2023 and June 30, 2022: Investee Legal Form Asset Type % Ownership Fair Value as of March 31, 2023 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % $ 1,455,400 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % $ 4,100,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % $ 389,664 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % $ 837,860 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * $ 2,596,500 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * $ 640,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * $ 4,236,500 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * $ 1,849,000 Total $ 16,111,744 Investee Legal Form Asset Type % Ownership Fair Value as of June 30, 2022 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % $ 1,518,100 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % $ 5,000,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % $ 19,512,036 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % $ 806,290 Secured Income L.P. Limited Partnership LP Interest 6.57 % $ 520,594 1300 Main, LP Limited Partnership GP Interest 1.00 % * $ 1,688,000 First & Main, LP Limited Partnership GP Interest 1.00 % * $ 2,237,000 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * $ 3,010,000 Main Street West, LP Limited Partnership GP Interest 1.00 % * $ 4,708,000 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * $ 725,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * $ 4,162,000 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * $ 1,803,000 Woodland Corporate Center Two, LP Limited Partnership GP Interest 1.00 % * $ - Total $ 45,696,840 * The general partner has a 1% partnership interest but is also entitled to profit sharing distributions ranging from 25% to 50% after certain thresholds are met. In January 2023, Dimension 28, LLP sold its sole property and distributed the majority of the sales proceeds. We received approximately $21.11 million and expect to receive any remaining reserves later this year. Unconsolidated Investments (Non-security) at Fair Value These are equity method investments that do not meet the consolidation requirements under ASC 810. Under the 1940 Act, these investments are considered “voting securities” as opposed to “investment securities”. Therefore, we listed these equity method investments separately from rest of the equity method investments at fair value in the consolidated balance sheets. As of March 31, 2023, our investments in Dimensions 28, LLP, Green Valley Medical Center, LP, Martin Plaza Associates, LP, One Harbor Center, LP and Westside Professional Center I, LP are considered to be voting securities under the 1940 Act. As of June 30, 2022, our investments in 1300 Main, LP, First & Main, LP, Dimensions 28, LLP, Green Valley Medical Center, LP, Main Street West, LP, Martin Plaza Associates, LP, One Harbor Center, LP, Westside Professional Center I, LP and Woodland Corporate Center Two, LP were considered to be voting securities under the 1940 Act. Therefore, these investments were shown as unconsolidated investments (non-security), at fair value in the consolidated balance sheets. For GAAP purposes, these investments have been recorded under the equity method investments, for which we have elected the fair value option as discussed above. Contingent Consideration in an Asset Acquisition Contingent consideration recognized is included in the initial cost of the assets acquired. Subsequent changes in the recorded amount of contingent consideration will generally be recognized as an adjustment to the cost basis of the acquired assets, in accordance with ASC 323-10-35-14a and ASC 360-10-30-1. The subsequent changes will be allocated to the acquired assets based on their relative fair value at the date of acquisition. Subsequent change in contingent consideration impacts the cost basis of acquired assets, which may also impact the statement of operations through subsequent accounting for the acquired asset. We are aware of diversity in practice regarding the subsequent treatment of the statement of operations effect of changes to the cost basis of the acquired assets. We generally believe the depreciation or amortization of these assets should be recognized as a cumulative “catch up” adjustment, as if the additional amount of consideration that is no longer contingent had been accrued from the outset of the arrangement. Leases The three partnerships that we acquired during the nine months ended March 31, 2023; 1300 Main, Main Street West and Woodland Corporate Center Two had solar equipment leases in place at the time of our acquisition. Therefore, these existing solar leases were reassessed at the acquisition date and were recorded as finance leases in accordance with ASC 842. We record leases on the consolidated balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, lease incentives, and any impairment of the right-of-use asset. The discount rate used in determining the lease liability is based upon incremental borrowing rates that we could obtain for similar loans as of the date of commencement or renewal. We do not record leases on the consolidated balance sheets that are classified as short term (less than one year). At lease inception, we determine the lease term by considering the minimum lease term and all optional renewal periods that we are reasonably certain to renew. The lease term is also used to calculate straight-line rent expense. The depreciable life of leasehold improvements is limited by the estimated lease term, including renewals if they are reasonably certain to be renewed. Our leases do not contain residual value guarantees or material variable lease payments that will impact our ability to pay dividends or cause us to incur additional expenses. The amortization of the right-of-use asset arising from finance leases is expensed through depreciation and amortization expense and the interest on the related lease liability is expensed through interest expense on our consolidated statements of operations. Impairment of Real Estate Assets We continually monitor events and changes in circumstances that could indicate that the carrying value of our real estate and related intangible assets may not be recoverable. When indicators of potential impairment emerge, we assess whether we will recover the carrying value of the asset through our undiscounted future cash flows and our eventual disposition. Based on this assessment, if we do not believe that we will recover the carrying value of the real estate and related intangible assets, we 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. We did not record any impairment charges on our assets held for use during the nine months ended March 31, 2023. However, we recorded an impairment loss allowance of $8,121,089 on our assets held for sale during the nine months ended March 31, 2023, which is d Reportable Segments ASC 280, Segment Reporting |
INVESTMENTS IN REAL ESTATE
INVESTMENTS IN REAL ESTATE | 9 Months Ended |
Mar. 31, 2023 | |
INVESTMENTS IN REAL ESTATE [Abstract] | |
INVESTMENTS IN REAL ESTATE | NOTE 3 – INVESTMENTS IN REAL ESTATE The following tables provide summary information regarding our operating properties which are owned through our subsidiaries. The ownership interest shown below is the percentage of the property owned by the subsidiary, not the percentage of the subsidiary owned by the Parent Company or the Operating Partnership. Consolidated Operating Properties Property Name: Addison Corporate Center Commodore Apartments Pon de Leo Apartments Hollywood Apartments Property Owner: Addison Property Owner, LLC Madison-PVT Partners LLC PVT-Madison Partners LLC PT Hillview GP, LLC Location: Windsor, CT Oakland, CA Oakland, CA Hollywood, CA Number of Tenants: 6 48 39 51 Year Built: 1980 1912 1929 1917 Ownership Interest: 100% 100% 100% 100% Property Name: Shoreline Apartments Satellite Place Office Building First & Main Office Building 1300 Main Office Building Property Owner: MacKenzie BAA IG Shoreline LLC MacKenzie Satellite Place Corp. First & Main, LP 1300 Main, LP Location: Concord, CA Duluth, GA Napa, CA Napa, CA Number of Tenants: 77 1 7 8 Year Built: 1968 2002 2001 2020 Ownership Interest: 100% 100% 100% 100% Property Name: Woodland Corporate Center Main Street West Office Building Property Owner: Woodland Corporate Center, Two, LP Main Street West, LP Location: Woodland, CA Napa, CA Number of Tenants: 14 7 Year Built: 2004 2007 Ownership Interest: 100% 100% The following table presents the allocation of real estate assets acquired during the nine months ended March 31, 2023 based on asset acquisition accounting. Property Name: First & Main Office Building Acquisition Date: July 23, 2022 Purchase Price Allocation Land $ 966,315 Building 15,597,370 Site Improvements 795,197 Tenant Improvements 524,399 Lease in Place 796,341 Leasing Commissions 347,204 Legal & Marketing Lease Up Costs 52,007 Total assets acquired 19,078,833 Net leasehold asset (liability) (220,100 ) Total assets acquired, net $ 18,858,733 Property Name: 1300 Main Office Building Acquisition Date: October 1, 2022 Purchase Price Allocation Land $ 805,575 Building 14,134,096 Tenant Improvements 323,882 Leaseholds 44,422 Lease In Place 682,140 Leasing Commissions 250,296 Legal & Marketing Lease Up Costs 57,849 Debt Mark-to-Market 338,000 Solar Finance Lease 76,715 Total assets acquired $ 16,712,975 Property Name: Woodland Corporate Center Acquisition Date: January 3, 2023 Purchase Price Allocation Land $ 1,840,468 Building 8,766,789 Site Improvements 564,014 Tenant Improvements 397,263 Lease In Place 790,382 Leasing Commissions 163,540 Legal & Marketing Lease Up Costs 77,264 Total assets acquired 12,599,720 Net leasehold asset (liability) ( 74,440 ) Total assets acquired, net $ 12,525,280 Property Name: Main Street West Office Building Acquisition Date: February 1, 2023 Purchase Price Allocation Land $ 1,433,698 Building 24,438,447 Site Improvements 9,956 Tenant Improvements 542,390 Lease In Place 926,521 Leasing Commissions 379,516 Legal & Marketing Lease Up Costs 41,152 Debt Mark-to-Market 717,000 Total assets acquired 28,488,681 Net leasehold asset (liability) ( 222,065 ) Total assets acquired, net $ 28,266,616 The total depreciation expense of our operating properties for the three and nine months ended March 31, 2023 were $1,047,603 and $2,606,536, respectively. The total depreciation expense of our operating properties for the three and nine months ended March 31, 2022 were $713,955 and $2,001,524, respectively. Operating Leases: Our 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. We retain substantially all the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, we do not require a security deposit from tenants on our commercial real estate properties, depending upon the terms of the respective leases and the creditworthiness of the tenants. Even when required, security deposits generally are not 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 sheets and were immaterial as of March 31, 2023 and June 30, 2022. The following table presents the components of income from real estate operations for the three and nine months ended March 31, 2023: Three Months Ended Nine Months Ended March 31, 2023 March 31, 2023 Lease Income - Operating leases $ 3,982,146 $ 9,979,740 Variable lease income (1) 487,723 1,232,884 $ 4,469,869 $ 11,212,624 (1) Primarily includes tenant reimbursements for utilities and common area maintenance. The following table presents the components of income from real estate operations for the three and nine months ended March 31, 2022: Three Months Ended Nine Months Ended March 31, 2022 March 31, 2022 Lease Income - Operating leases $ 2,137,406 $ 6,527,631 Variable lease income (1) 381,237 1,283,808 $ 2,518,643 $ 7,811,439 (1) Primarily includes tenant reimbursements for utilities and common area maintenance. As of March 31, 2023, the future minimum rental income from our real estate properties under non-cancelable operating leases are as follows: Year ended June 30, : Rental Income 2023 $ 2,262,297 2024 7,397,044 2025 5,939,945 2026 4,577,398 2027 3,615,567 Thereafter 12,352,580 Total $ 36,144,831 Lease Intangibles, Above-Market Lease Assets and Below-Market Lease Liabilities, Net As of March 31, 2023, our 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 $ 7,757,557 $ 419,166 $ 2,346,666 Accumulated amortization (1,676,388 ) (41,227 ) (811,716 ) Total $ 6,081,169 $ 377,939 $ 1,534,950 Weighted average amortization period (years) 4.9 5.4 5.1 As of June 30, 2022, our acquired lease intangibles, above-market lease assets and below-market lease liabilities, were as follows: Lease Intangibles Above-Market Lease Asset Below-Market Cost $ 2,889,828 $ - $ 1,455,317 Accumulated amortization (586,168 ) - (391,738 ) Total $ 2,303,660 $ - $ 1,063,579 Weighted average amortization period (years) 5.2 - 4.9 Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for three and nine months ended March 31, 2023, were as follows: Three Months Ended March 31, 2023 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 588,069 $ 26,687 $ (222,424 ) Nine Months Ended March 31, 2023 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 1,090,220 $ 41,227 $ (419,978 ) Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for three and nine months ended March 31, 2022, were as follows: Three Months Ended March 31, 2022 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 432,540 $ 31,976 $ (69,099 ) Nine Months Ended March 31, 2022 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 1,223,665 $ 95,928 $ (217,809 ) 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, : 2023 (remainder) 2024 2025 2026 2027 Thereafter In-place leases, to be included in amortization $ 446,347 $ 1,603,609 $ 1,285,141 $ 897,073 $ 520,119 $ 1,328,880 Above-market lease intangibles 29,426 115,725 70,864 41,731 30,177 90,016 Below-market lease liabilities (124,859 ) (451,247 ) (286,084 ) (195,626 ) (158,666 ) (318,468 ) $ (95,433 ) $ (335,522 ) $ (215,220 ) $ (153,895 ) $ (128,489 ) $ (228,452 ) |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Mar. 31, 2023 | |
INVESTMENTS [Abstract] | |
INVESTMENTS | NOTE 4 – INVESTMENTS The following table summarizes the composition of our equity method investments with fair value option election and other equity securities at fair value as of March 31, 2023 and June 30, 2022: Fair Value Fair Value Asset Type March 31, 2023 June 30, 2022 Non Traded Companies $ 8,438,289 $ 11,517,226 GP Interests (Equity method investment with fair value option election) 9,322,000 18,333,000 LP Interest 168,960 330,000 LP Interests (Equity method investment with fair value option election) 6,789,744 27,363,840 Investment Trust - 49,178 Total $ 24,718,993 $ 57,593,244 Our above total investments at fair value are disclosed in two separate lines as investments and unconsolidated investments (non-securities) in the consolidated balance sheets as of March 31, 2023 and June 30, 2022. The following table presents fair value measurements of our investments as of March 31, 2023, according to the fair value hierarchy that is described in our annual report on Form 10-K: Asset Type Total Level I Level II Level III Non Traded Companies $ 8,438,289 $ - $ - $ 8,438,289 GP Interests 9,322,000 - - 9,322,000 LP Interests 6,958,704 - - 6,958,704 Total $ 24,718,993 $ - $ - $ 24,718,993 The following table presents fair value measurements of our investments as of June 30, 2022, according to the fair value hierarchy that is described in our annual report on Form 10-K: Asset Type Total Level I Level II Level III Non Traded Companies $ 11,517,226 $ - $ - $ 11,517,226 GP Interests 18,333,000 - - 18,333,000 LP Interests 27,693,840 - - 27,693,840 Investment Trust 49,178 - - 49,178 Total $ 57,593,244 $ - $ - $ 57,593,244 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 nine months ended March 31, 2023: Balance at July 1, 2022 $ 57,593,244 Purchases of investments 303,884 Transfers to Level I (30,753 ) Transfer to Investments in Real Estate (8,488,467 ) Proceeds from sales, net (3,163,025 ) Return of capital distributions (12,298,337 ) Written off contingent consideration (57,875 ) Net realized gains 821,375 Net unrealized loss (9,961,053 ) Ending balance at March 31, 2023 $ 24,718,993 The transfer of $30,753 of investments from Level III to Level I category during the nine months ended March 31, 2023 resulted from one of our 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 nine months ended March 31, 2023, changes in unrealized gains, net included in earnings relating to Level III investments still held at March 31, 2023 were $9,577,691. 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 nine months ended March 31, 2022: Balance at July 1, 2021 $ 70,340,043 Purchases of investments 3,343,802 Transfers to Level I (230,160 ) Proceeds from sales, net (29,230,856 ) Return of capital distributions (11,807,238 ) Net realized gain 8,765,565 Net unrealized gains 6,170,851 Ending balance at March 31, 2022 $ 47,352,007 The transfers of $230,160 from Level III to Level I category during the nine months ended March 31, 2022 resulted from one of our 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 nine months ended March 31, 2022, changes in unrealized gains, net included in earnings relating to Level III investments still held at March 31, 2022 were $10,108,363. The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at March 31, 2023: Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Company $ 955,737 Estimated Liquidation Value Sponsor provided value 20% Non Traded Companies 7,482,552 Market Activity Secondary market industry publication GP Interests 9,322,000 Direct Capitalization Method Capitalization rate 6.3% - 6.5% 6.4% Discount rate 6.8% - 7.0% 7.0% LP Interests 6,393,260 Discounted Cash Flow Discount rate 6.3% - 9.0% 6.6% LP Interests 396,484 Estimated Liquidation Value Sponsor provided value 0% - 12.0% 0.2% LP Interest 168,960 Market Activity Contracted sale of property $ 24,718,993 The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2022: Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Companies $ 1,011,081 Estimated Liquidation Value Sponsor provided value Liquidity discount 25.0% - 75.0% 25.0% Non Traded Companies 10,506,145 Market Activity Secondary market industry publication Contracted purchase of security GP Interests 18,333,000 Market Activity Contracted purchase price LP Interests 21,550,730 Direct Capitalization Method Capitalization rate 4.0% - 5.0% 4.2% Liquidity discount 15% LP Interests 5,806,290 Discounted Cash Flow Discount rate 6.3% - 9.0% 8.6% LP Interest 6,820 Estimated Liquidation Value Sponsor provided value Liquidity discount 12% LP Interest 330,000 Market Activity Secondary market industry publication Investment Trust 49,178 Direct Capitalization Method Capitalization rate 5% Liquidity discount 15% $ 57,593,244 Impact of COVID-19 Pandemic The COVID-19 pandemic and related changes in tenant behavior have adversely impacted the fair value of our investments as of March 31, 2023 and June 30, 2022, 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 March 31, 2023 and June 30, 2022, 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 March 31, 2023, which could have a material adverse effect on our business, financial condition and results of operations. Summarized 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 the Rule 8-03(b)(3) of Regulation S-X applicable for smaller reporting companies, 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. The rule requires summarized financial statements for any significant equity method investments in an annual and interim report if any of the three tests exceed 20% . In addition to the SEC rules, ASC 323-10-50-3(c) requires summarized financial statements of our equity method investments, including those reported under the fair value option, if they are material individually or in aggregate. Our investment in Dimension 28, LLP was determined to be significant under the income test as of March 31, 2023. In addition, our equity method investments accounted under the fair value option were material in aggregate as of March 31, 2023. The summarized financial information of Dimension 28, LLP and aggregated summarized financial information of all equity method investees as of March 31, 2023 is as follows: Dimension 28, LP All Equity Method Total Assets $ 1,147,171 $ 94,267,563 Total Liabilities $ 10,125 $ 70,626,037 Total Equities $ 1,137,046 $ 23,641,526 Total Revenues $ 31,719,093 $ 42,450,387 Total Expenses $ 5,212,716 $ 14,114,665 Total Net Income $ 26,506,377 $ 28,335,722 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 March 31, 2023 and June 30, 2022, none of our investments in securities was considered an unconsolidated significant subsidiary under the SEC rules described above. |
ACQUISITIONS AND HELD FOR SALE
ACQUISITIONS AND HELD FOR SALE | 9 Months Ended |
Mar. 31, 2023 | |
ACQUISITIONS AND HELD FOR SALE [Abstract] | |
ACQUISITIONS AND HELD FOR SALE | NOTE 5 – ACQUISITIONS AND HELD FOR SALE Acquisition of General Partnership Interests As discussed in Note 1, on May 6, 2022, the Operating Partnership purchased 100% of the membership interests in the eight Management Companies that own the general partnership interests in eight limited partnerships, each of which own a Class A or B office property in Napa, Fairfield, Suisun City or Woodland, California. Each Management Company is the sole general partner of each of the limited partnerships as disclosed in the following table: General Partnership Interests Management Companies Total Purchase Price 1300 Main, LP 1300 Main, LLC $ 1,688,000 First & Main, LP First & Main, LLC 2,237,000 Green Valley Medical Center, LP Green Valley Medical Center, LLC 3,010,000 Main Street West, LP Main Street West, LLC 4,708,000 Martin Plaza Associates, LP Martin Plaza, LLC 725,000 One Harbor Center, LP One Harbor Center, LLC 4,162,000 Westside Professional Center I, LP Westside Professional Center, LLC 1,803,000 Woodland Corporate Center Two, LP Woodland Corporate Center, LLC - Total $ 18,333,000 The acquisition of general partnership interests was made in exchange for cash, preferred units in the Operating Partnership, and, in some cases, a contingent liability as shown below: General Partnership Interests Number of Preferred Units issued Amount of Preferred Units issued Cash Payments Contingent liability Total Purchase Price 1300 Main, LP - $ - $ 1,688,000 $ - $ 1,688,000 First & Main, LP 99,422.22 2,237,000 - - 2,237,000 Green Valley Medical Center, LP - - 2,410,000 600,000 3,010,000 Main Street West, LP - - 3,850,000 858,000 4,708,000 Martin Plaza Associates, LP 26,977.78 607,000 - 118,000 725,000 One Harbor Center, LP 80,266.67 1,806,000 1,571,000 785,000 4,162,000 Westside Professional Center I, LP - - 1,449,000 354,000 1,803,000 Woodland Corporate Center Two, LP - - - - - Total 206,666.67 $ 4,650,000 $ 10,968,000 $ 2,715,000 $ 18,333,000 The Operating Partnership’s preferred units are issued with a $25 liquidation preference, but because Wiseman agreed to a 4-year “lock-up” we agreed to a discounted issuance price of $22.50 per unit. As discussed in Note 1, in July 2022, in addition to the general partnership interest, the Operating Partnership completed the acquisition of 100% of the limited partnership interest in First & Main for total purchase price of $3,376,322, of which $2,711,378 was paid through issuance of 120,505.66 Preferred Units of the Operating Partnership. On October 1, 2022, the Operating Partnership completed the acquisition of 100% of the limited partnership interest in 1300 Main for total purchase price of $6,480,582, all of which was paid in cash. The Operating Partnership completed the acquisition of 100% of the limited partnership interests in Woodland Corporate Center Two on January 3, 2023 for a total purchase price of $5,636,966, of which $3,242,557 was paid through the issuance of 144,113.63 Preferred Units of the Operating Partnership. The Operating Partnership completed the acquisition of 100% of the limited partnership interests in Main Street West on February 1, 2023 for a total purchase price of $8,277,016, all of which were paid in cash. Contingent Consideration As discussed in our June 30, 2022 consolidated financial statements, pursuant to the membership interest purchase agreement, the purchase price paid at closing for the general partnership interests was reduced by 20% as of the closing date for the property companies that had not received fully executed and in force leases, the annualized scheduled rents of which are equal to or greater than the target scheduled rent as stated in the membership interest purchase agreement. This 20% holdback will be paid upon a property company reaching the stabilization threshold, reduced by stabilization costs, as defined in the membership interest purchase agreement. Management believes that it is probable that the stabilization thresholds will be reached for each of the property companies that did not meet this threshold at the acquisition date. Hence, the 20% holdback in the amount of $2,715,000 was recorded as a contingent liability as of the acquisition date. During the nine months ended March 31, 2023, we paid $1,154,125 of the total contingent liability. In addition, we reduced the contingent liability by $57,875, which was deemed not payable as of March 31, 2023. As of March 31, 2023 and June 30, 2022, contingent liability amounted to $1,503,000 and $2,715,000, respectively. Debt Guaranty The property companies have mortgage loans with various banks and the loans are guaranteed by Wiseman and its owner, Doyle Wiseman and his trust. The mortgage loans of 1300 Main, LP, One Harbor Center, LP, Martin Plaza Associates, LP, and Main Street West, LP are also guaranteed by the partnership’s general partner as the co-guarantor. On July 1, 2022, subsequent to Operating Partnership’s acquisition of the management companies, Wiseman’s owner, Doyle Wiseman and the Operating Partnership entered into an indemnity agreement whereby the Operating Partnership will indemnify Doyle Wiseman for any losses suffered by him through the default of a limited partnership on the mortgage secured by the property owned by the limited partnership. Historically, none of the limited partnerships has had any defaults on any mortgages and Doyle Wiseman has not had to satisfy any mortgage default through a guaranty. Furthermore, each of the limited partnerships is adequately capitalized, has sufficient cash flow from operations to service the mortgage notes and has not required Doyle Wiseman to provide any subordinated financial support to the limited partnerships. Therefore, we have not recorded any liability related to the guaranty on the mortgage loans as of March 31, 2023. Assets and Liabilities Held for Sale On June 28, 2022, the Addison Property Owner entered into a forbearance agreement for the sale of Addison Corporate Center with the lender of the note payable discussed in Note 10. As a result, the Addison Property Owner’s operations met the criteria to be classified as held for sale, which requires us to present the related assets and liabilities as separate line items in our consolidated balance sheets. We recorded these assets and liabilities at fair value less any costs to sell. Therefore, we recorded an impairment loss allowance of $9,126,461 on assets held for sale as of June 30, 2022. Due to a decrease in estimated fair value of the property, which was based on the sale price less the estimated closing costs, we recorded an additional impairment loss allowance of $8,121,089 during the nine months ended March 31, 2023. The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our consolidated balance sheets: March 31, 2023 June 30, 2022 Assets Real estate assets Land $ 6,456,615 $ 6,456,615 Building, fixtures and improvements 19,657,181 19,108,041 Intangible lease assets 5,225,719 5,154,568 Less: accumulated depreciation and amortization (5,112,309 ) (5,112,309 ) Total real estate assets, net 26,227,206 25,606,915 Cash 534,757 505,186 Investments income, rents and other receivables 505,835 490,239 Due from related entities - 401 Prepaid expenses and other assets 316,011 14,301 Allowance for impairment of assets held for sale (17,247,550 ) (9,126,461 ) Total assets $ 10,336,259 $ 17,490,581 Liabilities Deferred rent and other liabilities $ 445,243 $ 410,908 Accounts payable and accrued liabilities 1,204,029 334,081 Total liabilities $ 1,649,272 $ 744,989 We determined that the operations included in the table above did not meet the criteria to be classified as discontinued operations under the applicable guidance. |
LEASES
LEASES | 9 Months Ended |
Mar. 31, 2023 | |
LEASES [Abstract] | |
LEASES | NOTE 6 –LEASES Lessee Arrangements As discussed in Note 2, we acquired three partnerships which had solar equipment leases in place. We reassessed the leases as of the acquisition date and recorded them as finance leases in accordance with ASC 842. Our leases have remaining terms of 7.58 to 8 years. Right-of-use assets and lease liabilities by lease type, and the associated balance sheet classifications, are as follows: Balance Sheet Classification March 31, 2023 Right-of-use assets: Finance leases Real estate assets, net $ 651,121 Lease liabilities: Finance leases Finance lease liabilities $ 642,483 We have included these leases in real estate assets, net March 31, 2023 Building, fixtures and improvements $ 658,695 Accumulated depreciation (7,574 ) $ 651,121 Lease Expense The components of total lease cost were as follows for the nine months ended March 31, 2023: March 31, 2023 Finance lease cost Right-of-use asset amortization $ 7,574 Interest expense 11,238 Total lease cost $ 18,812 Lease Obligations Future undiscounted lease payments for finance leases with initial terms of one year or more are as follows: Fiscal Year Ending June 30, : Finance Leases 2023 (remainder) $ 21,271 2024 86,361 2025 89,813 2026 93,408 2027 97,079 Thereafter 387,042 Total undiscounted lease payments 774,974 Less: Imputed interest (132,491 ) Net lease liabilities $ 642,483 Supplemental Lease Information March 31, 2023 Finance lease weighted average remaining lease term (years) 7.78 years Finance lease weighted average discount rate 5.0 % Cash paid for amounts included in the measurement of lease liabilities Financing cash flows from finance leases $ 16,213 Right-of-use assets obtained in exchange for new finance lease liabilities $ 658,695 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Mar. 31, 2023 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 7 – 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. Our 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. We determine whether we are 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. We reassess our evaluation of whether an entity is a VIE when certain reconsideration events occur. We reassess our 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 March 31, 2023 and June 30, 2022, six and seven of our unconsolidated VIEs, respectively, include interests in limited partnerships and limited liability companies. We have 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 us, and they have been reported as investments at fair value in the March 31, 2023 and June 30, 2022, consolidated balance sheets. The table below presents a summary of the nonconsolidated VIEs in which we hold variable interests: Total Nonconsolidated VIEs As of March 31, 2023 As of June 30, 2022 Fair value of investments in VIEs $ 6,958,704 $ 27,693,840 Carrying value of variable interests - assets $ 8,557,139 $ 19,304,856 Maximum Exposure to Loss: Limited Partnership Interest $ 8,557,139 $ 19,304,856 Our 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 | 9 Months Ended |
Mar. 31, 2023 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8 – RELATED PARTY TRANSACTIONS Advisory Agreements Effective January 1, 2021: As discussed in Note 1, on January 26, 2021, our Board of Directors 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 we will continue to pay an Asset Management Fee on essentially the same terms as we were 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 the partnership units (units in our operating partnership issued by us and held by persons other than us) issued by us 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” our 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 Investment Adviser will receive an annual fee equal to $100 for providing the investment advice to us as to our securities portfolio under the Amended and Restated Investment Advisory Agreement. During the three and nine months ended March 31, 2023, we incurred asset management fees of $767,299 and $2,225,085, respectively. During the three and nine months ended March 31, 2022, we incurred asset management fees of $680,678 and $2,034,852, respectively. The asset management fees mentioned above were based on the following quarter ended Invested Capital segregated in three columns based on the annual fee rate: Asset Management Fee Annual % 3.0% 2.0% 1.5% Total Invested Capital Quarter ended: September 30, 2022 $ 20,000,000 $ 80,000,000 $ 48,639,649 $ 148,639,649 December 31, 2022 $ 20,000,000 $ 80,000,000 $ 52,470,792 $ 152,470,792 March 31, 2023 $ 20,000,000 $ 80,000,000 $ 60,153,751 $ 160,153,751 Quarter ended: September 30, 2021 $ 20,000,000 $ 80,000,000 $ 33,927,634 $ 133,927,634 December 31, 2021 $ 20,000,000 $ 80,000,000 $ 34,242,127 $ 134,242,127 March 31, 2022 $ 20,000,000 $ 80,000,000 $ 35,848,952 $ 135,848,952 During the three and nine months ended March 31, 2023 and 2022, we did not incur or accrue any incentive management fee under the new Advisory Management Agreement. Property Management and Leasing Services: On May 6, 2022, the Real Estate Adviser’s newly formed wholly owned subsidiary, Wiseman Company Management, LLC, purchased the property management and leasing services rights from Wiseman. Therefore, effective the acquisition date, Wiseman Company Management has been providing the property management and leasing services to the eight property limited partnerships in accordance with the pre-existing agreements. There have been no changes to any of the management services agreements terms with the property limited partnerships since the acquisition of the property management service rights. Organization and Offering Costs Reimbursement: As provided in the Offering Circular, offering costs incurred and paid by us in excess of $550,000 in connection with the offering will be reimbursed by the Adviser except to the extent that 10% in broker fees are not incurred. In such case, the broker savings were available to be paid by us for marketing expenses or other non-cash compensation. As of June 30, 2022, we incurred $600,130 of offering costs on our Offering Circular to sell the preferred stock, of which $501,917 relates to syndication cost paid by Mackenzie on behalf of us in connection with the preferred stock offering. Total offering costs incurred as of June 30, 2022, were in an excess of the total offering cost reimbursement threshold including the broker savings by $21,841. In our updated Offering Circular filed on October 14, 2022, we increased the offering costs reimbursement threshold from $550,000 to $825,000. As of March 31, 2023, we incurred $1,009,714 of offering costs on our Offering Circular to sell the preferred stocks, of which $911,186 relates to syndication cost paid both by Mackenzie on behalf of us in connection with the preferred stock offering. Total offering costs incurred as of March 31, 2023 were below the offering cost reimbursement threshold including the broker savings. Administration Agreement: Under the Administration Agreement, we reimburse MacKenzie for its allocable portion of overhead and other expenses it incurs in performing its obligations under the Administration Agreement, including furnishing us with office facilities, equipment and clerical, bookkeeping and record keeping services at such facilities, as well as providing us with other administrative services, subject to the independent directors’ approval. In addition, we reimburse MacKenzie for the fees and expenses associated with performing compliance functions, and its allocable portion of the compensation of our 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 us. No fee (only cost reimbursement) is being paid by us to MacKenzie for this service. The administrative cost reimbursements for the three and nine months ended March 31, 2023 were $181,500 and $544,500, respectively. The administrative cost reimbursements for the three and nine months ended March 31, 2022, were $152,400 and $457,200, respectively. The transfer agent services cost reimbursement for the three and nine months ended March 31, 2023 were $23,000 and $69,000, respectively. The transfer agent services cost reimbursement for the three and nine months ended March 31, 2022 were $26,600 and $79,801, respectively. The table below outlines the related party expenses incurred for the three and nine months ended March 31, 2023 and 2022, and unpaid as of March 31, 2023, and June 30, 2022. Nine Months Ended Unpaid as of Types and Recipient March 31, 2023 March 31, 2022 March 31, 2023 June 30, 2022 Asset management fees- the Real Estate Adviser $ 2,225,085 $ 2,034,852 $ - $ - Asset acquisition fees- the Real Estate Adviser (3) 1,878,356 - - - Administrative cost reimbursements- MacKenzie 544,500 457,200 - - Transfer agent cost reimbursements - MacKenzie 69,000 79,801 - - Organization & Offering Cost (2) 410,214 391,546 186,273 141,397 Other expenses (1) - - 7,150 72,697 Due to related entities $ 193,423 $ 214,094 (1) (2) (3) Asset acquisition fees paid to the Real Estate Adviser were capitalized as a part of the real estate basis in accordance with our policy. The acquisition fee paid during the nine months ended March 31, 2023 was for the acquisition of First & Main in July 2022, 1300 Main in October 2022, Woodland Corporate Center Two in January 2023 and Main Street West in February 2023 . Affiliated Investments 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. We own the following series of CRBT and we are the only beneficiary of that series. Under the terms of the agreement, there are no redemption rights to any of the series participants. • CRBT, REEP, Inc.– A has an ownership interest in one of three general partners of a limited partnership which owns one multi-family property located in Frederick, Maryland. During the quarter ended December 31, 2022, the series sold the underlying investments, distributed the proceeds to us and dissolved the series. We received total proceeds of $81,627 and realized a gain of $47,637. |
MARGIN LOANS
MARGIN LOANS | 9 Months Ended |
Mar. 31, 2023 | |
MARGIN LOANS [Abstract] | |
MARGIN LOANS | NOTE 9 – MARGIN LOANS We have a brokerage account through which we buy and sell publicly traded securities. The provisions of the account allow us 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 used as collateral. As of March 31, 2023 and June 30, 2022, we had no margin credit available for cash withdrawal or the ability to purchase in additional securities. Accordingly, as of March 31, 2023 and June 30, 2022, there was no amount outstanding under this short-term credit line. |
MORTGAGE NOTES PAYABLE AND DEBT
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY | 9 Months Ended |
Mar. 31, 2023 | |
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY [Abstract] | |
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY | NOTE 10 – MORTGAGE NOTES PAYABLE AND DEBT GUARANTY Addison Property Owner Mortgage Notes Payable Addison Property Owner is the obligor under a note payable to Wells Fargo Bank, NA (the “Lender”) 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 Addison Property Owner. On June 8, 2020, as part of the Contribution Agreement, we 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, we 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%. The outstanding loan amounts as of March 31, 2023 and June 30, 2022, were $21,941,673 and $19,604,382, respectively, which were disclosed as a part of the mortgage notes payable in the consolidated balance sheets. 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, we 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 March 31, 2023 and June 30, 2022, we have not recorded any debt guaranty obligation because we have not engaged in inappropriate actions that would give rise to a guaranty obligation. On April 30, 2022, the notes payable matured and Addison Property Owner was unable to extend the loan. On June 28, 2022, Addison Property Owner entered into a forbearance agreement with the Lender. The loan is currently accruing interest at the default rate as per the loan agreement. As of March 31, 2023, Addison Corporate Center is being marketed for sale in accordance with all the conditions set forth in the forbearance agreement. In addition, effective June 28, 2022, on monthly basis the lender will collect all cash revenues from Addison Corporate Center and deduct funds sufficient to satisfy monthly accrued interest at the default rate, any outstanding fees and costs incurred by the lender. The excess cash will be made available to the borrower for the payment of previously approved budgeted operating expenses. Any funds remaining thereafter will be applied towards the unpaid loan principal balance. In April 2023, we entered into a sale agreement with a third-party buyer for a sale price of $10.50 million which was approved by the lender. The sale is expected to close in May 2023. Madison and PVT Mortgage 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 PT Hillview Mortgage Notes Payable On October 4, 2021, PT Hillview entered into a loan agreement with Ladder Capital Finance in the amount of $17,500,000. The annual interest rate shall equal to the greater of (i) a floating rate of interest equal to 5.5% plus LIBOR, and (ii) 5.75%. The loan was obtained to finance the acquisition of Hollywood Apartments. The loan matures on October 6, 2023 and can be extended for two successive 12 month terms (the “Maturity Date”) and is secured by the Hollywood Apartments. The loan requires interest-only monthly payments with the principal balance due at maturity date. Interest is due based on a 360-day amortization period. The outstanding balances as of March 31, 2023, and June 30, 2022, was $17,500,000 and $16,804,689, respectively, which is disclosed as a part of the mortgage notes payable in the consolidated balance sheets. PT Hillview also entered into an interest rate cap agreement on October 4, 2021, as required by the lender. We have not recorded the fair value and the changes in the fair value of the contract in our consolidated financial statements as the amounts were insignificant to our consolidated financial statements. We (along with three other principals of True USA) guaranteed: (1) the “Recourse Obligations” as defined in the loan agreement, which are triggered only if the borrower 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, ADA noncompliance, and environmental contamination, etc.), (2) a “Debt Service and Carry Guaranty” under the loan, which guarantees the payment of interest on the loan and other “Basic Carrying Costs”, and (3) a “Guaranty of Completion” guaranteeing that the redevelopment work contracted to be performed will be completed as agreed. We were comfortable issuing such guarantees because the loan provides for a substantial “Carrying Costs” reserve and for the full funding of the construction contract, which is subject to a guaranteed maximum price. MacKenzie Shoreline Mortgage Notes Payable On May 6, 2021, MacKenzie Shoreline entered into a loan agreement with Pacific Premier Bank, in the amount of $17,650,000. The annual interest rate shall be 3.65% for the first 60 months, and a variable interest rate based on a 6-month CME Term Secured Overnight Financing Rate plus a margin of 3.00 percentage points, for months thereafter until maturity. The loan was obtained to finance the acquisition of Shoreline Apartments. The loan matures on June 1, 2032 and is secured by Shoreline Apartments. The loan requires interest only monthly payments through June 30, 2027, and beginning July 1, 2027, monthly payments of principal and interests are due based on 360 months of amortization period. Accordingly, the outstanding loan balance as of March 31, 2023 and June 30, 2022, was $17,650,000, which is disclosed as a part of the mortgage notes payable in the consolidated balance sheets. First & Main Mortgage Notes Payable On January 4, 2021, First & Main entered into a loan agreement with Exchange Bank, in the amount of $12,000,000 at a fixed annual interest rate of 3.75%. The loan was obtained to finance the acquisition of First & Main Office Building. The loan matures on February 1, 2026 and is secured by First & Main Office Building. The loan requires monthly payments of principal and interest based on 25 year amortization period with the remaining principal balance due at maturity. The loan is guaranteed by Wiseman, but Wiseman was subsequently indemnified by the Operating Partnership on July 1, 2022 as discussed in Note 5. The outstanding balance of the loan as of March 31, 2023 was $11,367,286, which is disclosed as a part of the mortgage notes payable in the consolidated balance sheet. We consolidated First & Main with our consolidated financial statements during the quarter ended September 30, 2022, accordingly, this mortgage note payable is not included in our consolidated balance sheet as of June 30, 2022 The following table provides the projected principal and interest payments on the loan for the next four years: Fiscal Year Ending June 30, : Principal Interest 2023 (remainder) $ 79,373 $ 106,321 2024 324,747 417,753 2025 337,136 405,363 2026 10,626,030 230,553 Total $ 11,367,286 $ 1,159,990 First & Main Other Note Payables: Junior Debt In 2018, First & Main voted to issue $1,000,000 in interest-only junior promissory notes. The notes were issued in 2018 and 2019 with a maturity date of December 31, 2023 and include no prepayment penalty for early retirement. Interest on the notes is payable on the first day of each month at 7% per annum. The promissory notes are disclosed as a part of the notes payable in the consolidated balance sheet as of March 31, 2023. We consolidated First & Main with our consolidated financial statements during the quarter ended September 30, 2022; accordingly, these notes are not included in our consolidated balance sheet as of June 30, 2022. First & Main Other Notes Payables: Small Business Administration (“SBA”) Loan In June 2020, First & Main borrowed $151,000 from the SBA, under the Economic Injury Disaster Loan program. The loan will be paid back over 30 years at an annual interest rate of 3.75% starting in December 2022. Monthly payments will be $731. The loan is disclosed as a part of the notes payable in the consolidated balance sheet as of March 31, 2023. We consolidated First & Main with our consolidated financial statements during the quarter ended September 30, 2022; accordingly, this loan was not included in our consolidated balance sheet as of June 30, 2022. Solar System Loan (First & Main) In August 2020, First & Main borrowed $220,000 from The Wiseman Family Trust to fund the installation of the solar power system at First & Main Office Building. The loan will be paid back over a period of 10 years at an annual interest rate of 5%. Monthly payments of principal and interest will be $1,486. As of March 31, 2023, the outstanding balance of the loan amounted to $187,010 and is disclosed as a part of the notes payable in the consolidated balance sheet. We consolidated First & Main with our consolidated financial statements during the quarter ended September 30, 2022; accordingly, this loan is not included in our consolidated balance sheet as of June 30, 2022. 1300 Main Mortgage Notes Payable On April 12, 2019, 1300 Main entered into a loan agreement with Suncrest Bank, in the amount of $9,160,000 at a fixed annual interest rate of 4.55% for the first 60 payments. Beginning May 25, 2024, the interest rate will be calculated on the unpaid principal balance at an interest rate based on the Prime Rate as published in the Western Edition Wall Street Journal, plus a margin of 1%. The loan was obtained to consolidate the construction loans obtained during the development and construction of the building. The loan matures on April 25, 2029, and is secured by 1300 Main Office Building. The loan requires monthly payments of principal and interest of $51,610 for 60 consecutive payments followed by 59 monthly payments of principal and interest of $60,674 with the remaining principal balance due at maturity. The loan is guaranteed by Wiseman, but Wiseman was subsequently indemnified by the Operating Partnership on July 1, 2022 as discussed in Note 5. The outstanding balance of the loan as of March 31, 2023 was $8,449,860, which is disclosed as a part of the mortgage notes payable in the consolidated balance sheet as of March 31, 2023. We consolidated 1300 Main with our consolidated financial statements during the quarter ended December 31, 2022, accordingly, this mortgage note payable was not included in our consolidated balance sheet as of June 30, 2022. In accordance with the asset acquisition accounting, the debt assumed from the acquisition of 1300 Main was measured at fair value. The interest rate on the debt was below the current market rates, as a result, $338,000 of the acquisition cost was allocated to debt mark-to-market as disclosed in Note 2. The debt mark-to-market value is amortized over the remaining loan term. The debt mark to market value, net of accumulated amortization as of March 31, 2023 amounted to $231,263 and was netted against the total debt balance in the consolidated balance sheet. The following table provides the projected principal and interest payments on the loan for the next five years: Fiscal Year Ending June 30, : Principal Interest 2023 (remainder) $ 56,863 $ 98,033 2024 254,196 383,254 2025 360,159 367,933 2026 377,129 350,963 2027 394,900 333,192 Thereafter 7,006,613 562,666 Total $ 8,449,860 $ 2,096,041 1300 Main Other Notes Payable: SBA Loan On January 13, 2021, 1300 Main borrowed $150,000 from the SBA, under the Economic Injury Disaster Loan program. The loan will be paid back over 30 years at an annual interest rate of 3.75% starting in July 2023. Monthly payments will be $731. The loan is disclosed as a part of the notes payable in the consolidated balance sheet as of March 31, 2023. We consolidated 1300 Main with our consolidated financial statements during the quarter ended December 31, 2022; accordingly, this loan was not included in our consolidated balance sheet as of June 30, 2022. Woodland Corporate Center Two Mortgage Notes Payable On October 2, 2019, Woodland Corporate Center Two entered into a loan agreement with Western Alliance Bank, in the amount of $7,500,000 at a fixed annual interest rate of 4.15%. The loan was obtained to finance the acquisition of Woodland Corporate Center Two Office Building. The loan matures on October 7, 2024 and is secured by Woodland Corporate Center Two Office Building. The loan requires monthly payments of principal and interest based on a 5 year amortization period with the remaining principal balance due at maturity. The loan is guaranteed by Wiseman, but Wiseman was subsequently indemnified by the Operating Partnership on July 1, 2022 as discussed in Note 5. The outstanding balance of the loan as of March 31, 2023 was $6,876,582, which is disclosed as a part of the mortgage notes payable in the consolidated balance sheet. We consolidated Woodland Corporate Center Two with our consolidated financial statements during the quarter ended March 31, 2023, accordingly, this mortgage note payable was not included in our consolidated balance sheet as of June 30, 2022 The following table provides the projected principal and interest payments on the loan for the next three years: Fiscal Year Ending June 30, : Principal Interest 2023 (remainder) $ 48,661 $ 72,758 2024 201,377 284,221 2025 6,626,544 92,832 Total $ 6,876,582 $ 449,811 Main Street West Mortgage Notes Payable On October 22, 2019, Main Street West entered into a loan agreement with First Northern Bank of Dixon, in the amount of $16,600,000 at a fixed annual interest rate of 4%. The loan was obtained to finance the acquisition of Main Street West Office Building. The loan matures on November 1, 2024 and is secured by Main Street West Office Building. The loan requires monthly payments of principal and interest based on a 5 year amortization period with the remaining principal balance due at maturity. The loan is guaranteed by Wiseman, but Wiseman was subsequently indemnified by the Operating Partnership on July 1, 2022 as discussed in Note 5. The outstanding balance of the loan as of March 31, 2023 was $15,444,298, which is disclosed as a part of the mortgage notes payable in the consolidated balance sheet. We consolidated Main Street West with our consolidated financial statements during the quarter ended March 31, 2023, accordingly, this mortgage note payable was not included in our consolidated balance sheet as of June 30, 2022. In accordance with the asset acquisition accounting, the debt assumed from the acquisition of Main Street West was measured at fair value. The interest rate on the debt was below the current market rates, as a result, $717,000 of the acquisition cost was allocated to debt mark-to-market as disclosed in Note 2. The debt mark-to-market value is amortized over the remaining loan term. The debt mark to market value, net of accumulated amortization as of March 31, 2023 amounted to $651,818 and was netted against the total debt balance in the consolidated balance sheet. The following table provides the projected principal and interest payments on the loan for the next five years: Fiscal Year Ending June 30, : Principal Interest 2023 (remainder) $ 108,654 $ 156,101 2024 453,824 605,199 2025 472,314 586,709 2026 491,557 567,466 2027 511,584 547,440 Thereafter 13,406,365 266,679 Total $ 15,444,298 $ 2,729,594 Main Street West Other Notes Payable: SBA Loan On April 7, 2021, Main Street West borrowed $150,000 from the SBA, under the Economic Injury Disaster Loan program. The loan will be paid back over 30 years at an annual interest rate of 3.75% starting in September 4, 2022. Monthly payments will be $731. The loan is disclosed as a part of the notes payable in the consolidated balance sheet as of March 31, 2023. We consolidated Main Street West with our consolidated financial statements during the quarter ended March 31, 2023; accordingly, this loan was not included in our consolidated balance sheet as of June 30, 2022. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Mar. 31, 2023 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 11 – 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 nine months ended March 31, 2023 and 2022: Nine Months Ended March 31, 2023 Nine Months Ended March 31, 2022 Net income (loss) attributable to common stockholders $ (14,397,810 ) $ 15,216,402 Basic and diluted weighted average common shares outstanding 13,282,666.75 13,359,538.60 Basic and diluted earnings per share $ (1.08 ) $ 1.14 |
SHARE OFFERINGS AND FEES
SHARE OFFERINGS AND FEES | 9 Months Ended |
Mar. 31, 2023 | |
SHARE OFFERINGS AND FEES [Abstract] | |
SHARE OFFERINGS AND FEES | NOTE 12 – SHARE OFFERINGS AND FEES During the nine months ended March 31, 2023, we issued 131,046.97 common shares with total gross proceeds of $1,208,909 under the DRIP. In addition, in September 2022, we issued 169.67 common shares at $10.25 per share, to the Class A unit holders of the Operating Partnership who exercised their option to convert their Class A units to our common shares. During the nine months ended March 31, 2023, we issued 468,425.06 preferred shares with total gross proceeds of $11,449,495 under the Offering Circular and 735.66 preferred shares with total gross proceeds of $39,988 under the DRIP. For the nine months ended March 31, 2023, we incurred selling commissions and fees of $1,363,238 in relation to preferred shares offering. During the nine months ended March 31, 2022, we issued 91,013.94 common shares with total gross proceeds of $839,610 under the DRIP. In addition to the common shares sold through our public offering, in March 2022, we issued 212.19 common shares at $10.25 per share, to the Class A unit holders of the Operating Partnership as discussed in Note 1. During the nine months ended March 31, 2022, we issued 80,014.57 preferred shares with gross proceeds of $1,984,500. For the nine months ended March 31, 2022, we incurred syndication costs of $672,460 in relation to preferred shares offering. |
SHARE REPURCHASE PLAN
SHARE REPURCHASE PLAN | 9 Months Ended |
Mar. 31, 2023 | |
SHARE REPURCHASE PLAN [Abstract] | |
SHARE REPURCHASE PLAN | NOTE 13 – SHARE REPURCHASE PLAN During the nine months ended March 31, 2023, we repurchased our own shares through our Share Repurchase Program and through third-party auctions as noted in the below table: Period Total Number Average Repurchase Price Per Share Total Repurchase Consideration During the nine months ended March 31, 2023 September 1, 2022 through September 30, 2022 40,817.06 $ 9.47 $ 386,385 December 1, 2022 through December 31, 2022 44,048.79 $ 9.44 415,968 March 1, 2023 through March 31, 2023 58,896.45 $ 7.38 434,656 143,762.30 $ 1,237,009 During the nine months ended March 31, 2022, we repurchased our own shares as noted in the below table: Period Total Number Average Repurchase Price Per Share Total Repurchase Consideration During the nine months ended March 31, 2022 December 22, 2021 5,607.89 $ 9.84 $ 55,188 January 6, 2022 through March 31, 2022 125,677.16 $ 9.15 1,149,490 131,285.05 $ 1,204,678 |
STOCKHOLDER DIVIDENDS
STOCKHOLDER DIVIDENDS | 9 Months Ended |
Mar. 31, 2023 | |
STOCKHOLDER DIVIDENDS [Abstract] | |
STOCKHOLDER DIVIDENDS | NOTE 14 – STOCKHOLDER DIVIDENDS On March 31, 2020, after assessing the impacts of the COVID-19 pandemic, our Board of Directors unanimously approved the suspension of regular quarterly dividends to our stockholders. On May 10, 2021, the Board of Directors resumed the quarterly dividends after reassessing our cash flow. The following table reflects the dividends per share that we have declared on our common stock and preferred stock during the nine months ended March 31, 2023: Dividends Common Stock Preferred Stock During the Quarter Ended Per Share Amount Per Share Amount September 30, 2022 $ 0.105 $ 1,390,290 $ 0.375 $ 87,884 December 31, 2022 0.110 1,456,391 0.375 155,909 March 31, 2023 0.115 1,520,985 0.375 209,620 $ 0.330 $ 4,367,666 $ 1.125 $ 453,413 During the nine months ended March 31, 2023, we paid common dividends of $4,170,569, of which $1,208,909 have been reinvested under our DRIP. April 2023 Total distributions declared by the Operating Partnership for the Class A unit holders during the nine months ended March 31, 2023, were $29,552 (which was $0.33 per unit). Total distributions declared by the Operating Partnership for the preferred unit holders the nine months ended March 31, 2023, were $407,732 (which was $0.86 per unit). Total distributions declared by the Operating Partnership for the preferred unit holders during year ended June 30, 2022 were $51,667 (which was $0.25 per unit). On February 10, 2023, we declared the Series A Preferred stock quarterly dividend of $0.375 per share payable at the rate of $0.125 per month for holders of record as of April 30, 2023, May 31, 2023, and June 30, 2023. The following table reflects the dividends per share that we have declared on our common stock during the nine months ended March 31, 2022: Dividends Common stock Preferred stock During the Quarter Ended Per Share Amount Per Share Amount September 30, 2021 $ 0.130 * $ 1,731,482 $ - $ - December 31, 2021 0.080 1,068,612 0.125 440 March 31, 2022 0.090 1,193,841 0.375 18,507 $ 0.300 $ 3,993,935 $ 0.500 $ 18,947 * 0.06 per share dividend was declared for the quarter ended June 30, 2021. During the nine months ended March 31, 2022, we paid total dividends of $2,800,534 of which $839,685 has been reinvested under the Company’s DRIP. Total dividends declared by the Operating Partnership for the Class A unit holders during the nine months ended March 31, 2022, was $3,609 (which was $0.30 per unit), of which $723 ($0.06 per unit) was related to dividend declared for the quarter ended June 30, 2021. Holders of our preferred shares are entitled to receive, when and as authorized by our Board of Directors and declared out of legally available funds, cumulative cash dividends on each preferred share at an annual rate of 6%. This is a preference, not a guarantee, but is a term contained in the preferred designation of our Charter; however, the board could suspend the dividend at any time, although it would continue to accrue. The dividend must be paid before the common shares can be paid a dividend, and before the Adviser can receive any incentive management fee. During the nine months ended March 31, 2022, we declared total dividends to preferred shares of $18,947. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2023 | |
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-Q and Regulation S-X. We follow the accounting principles generally accepted in the United States of America (“GAAP”) and includes the accounts of our wholly owned consolidated subsidiaries and majority-owned controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements reflect all normal recurring adjustments, which are, in the opinion of management, necessary for the fair presentation of our results for the interim periods presented. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2022, included in our annual report on Form 10-K filed with the SEC. Certain prior period information has been reclassified to conform to the prior year end presentation. The reclassification has no effect on our consolidated balance sheet or the consolidated statement of operations as previously reported. There have been no changes in the significant accounting policies from those disclosed in the audited financial statements for the year ended June 30, 2022, other than those expanded upon and described herein. |
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. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Our cash and cash equivalents represent current bank accounts and other bank deposits free of encumbrances and having maturity dates of three months or less from the respective dates of deposit. We limit cash investments to financial institutions with high credit standing; therefore, we believe our cash investments are not exposed to any significant credit risk. The restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, and 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 us may exceed these insured limits. Restricted cash is subject to legal or contractual restrictions as to withdrawal or use, including restrictions that require the funds to be used for a specified purpose and restrictions that limit the purpose for which the funds can be used. |
Investments Income Receivable | Investments Income Receivable Investment income 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. We monitor and adjust our receivables, and those deemed to be uncollectible are written-off only after all reasonable collection efforts are exhausted. We have determined that all investments income receivable balances outstanding as of March 31, 2023 and June 30, 2022, are collectible and do not require recording any uncollectible allowance. |
Rents and Other Receivables | Rents and Other Receivables We 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. We exercise judgment in establishing these allowances and consider payment history and current credit status of tenants in developing these estimates. We have determined that all rent receivable balances outstanding as of March 31, 2023 and June 30, 2022, are collectible and do not require recording any uncollectible allowance. |
Capital Pending Acceptance | Capital Pending Acceptance We conduct closings for new purchases of our common stock twice per month and admits new stockholders effective beginning the first of each month. Subscriptions are effective only upon our 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 balance sheets. As of March 31, 2023 and June 30, 2022, capital pending acceptance was $549,400 and $85,000, respectively. |
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, 2021. Therefore, it did not incur any tax expense or excise tax on its income from operations during the quarterly periods within the tax year 2021. Similarly, for the tax year 2022, 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 2022. TRS and MacKenzie NY 2 are subject to corporate federal and state income tax on their taxable income at regular statutory rates. As discussed in Note 1, TRS terminated effective December 31, 2022. As of December 31, 2022, they did not have material taxable income for tax year 2022. Therefore, TRS, and MacKenzie NY 2 did not record any income tax provisions during any fiscal period within the tax year 2022. As of March 31, 2023, MacKenzie NY 2, as a taxable corporate subsidiary of the Parent Company, did not have any taxable income. Therefore, we did not record any tax provisions for tax year 2023. MacKenzie Satellite is a qualified REIT subsidiary of the Parent Company. Therefore, it does not file a separate tax return. The Operating Partnership is a limited partnership and its subsidiaries Addison Property Owner, LLC (the “Addison Property Owner”), Hollywood Hillview, MacKenzie Shoreline and MRC Aurora are limited liability companies. Madison and PVT are also limited liability companies. First & Main, 1300 Main, Main Street West and Woodland Corporate Center Two are limited partnerships. 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. We follow ASC 740, Income Taxes |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the date of the consolidated balance sheets 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 balance sheets are considered in the preparation of the consolidated financial statements presented herein. Subsequent events that occur after the date of the consolidated balance sheets that do not provide evidence about the conditions that existed as of the date of the consolidated statements of changes in equity are considered for disclosure based upon their significance in relation to our 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. We believe that the carrying amounts of our 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 based on their nature, terms, and interest rates. |
Equity Securities | Equity Securities We have minority and non-controlling equity investments in various limited partnerships and non-traded entities, which do not have readily determinable fair values. We do 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 We 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 our 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 in the consolidated balance sheets as of March 31, 2023 and June 30, 2022: Investee Legal Form Asset Type % Ownership Fair Value as of March 31, 2023 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % $ 1,455,400 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % $ 4,100,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % $ 389,664 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % $ 837,860 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * $ 2,596,500 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * $ 640,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * $ 4,236,500 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * $ 1,849,000 Total $ 16,111,744 Investee Legal Form Asset Type % Ownership Fair Value as of June 30, 2022 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % $ 1,518,100 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % $ 5,000,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % $ 19,512,036 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % $ 806,290 Secured Income L.P. Limited Partnership LP Interest 6.57 % $ 520,594 1300 Main, LP Limited Partnership GP Interest 1.00 % * $ 1,688,000 First & Main, LP Limited Partnership GP Interest 1.00 % * $ 2,237,000 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * $ 3,010,000 Main Street West, LP Limited Partnership GP Interest 1.00 % * $ 4,708,000 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * $ 725,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * $ 4,162,000 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * $ 1,803,000 Woodland Corporate Center Two, LP Limited Partnership GP Interest 1.00 % * $ - Total $ 45,696,840 * The general partner has a 1% partnership interest but is also entitled to profit sharing distributions ranging from 25% to 50% after certain thresholds are met. In January 2023, Dimension 28, LLP sold its sole property and distributed the majority of the sales proceeds. We received approximately $21.11 million and expect to receive any remaining reserves later this year. |
Unconsolidated Investments (Non-security) at Fair Value | Unconsolidated Investments (Non-security) at Fair Value These are equity method investments that do not meet the consolidation requirements under ASC 810. Under the 1940 Act, these investments are considered “voting securities” as opposed to “investment securities”. Therefore, we listed these equity method investments separately from rest of the equity method investments at fair value in the consolidated balance sheets. As of March 31, 2023, our investments in Dimensions 28, LLP, Green Valley Medical Center, LP, Martin Plaza Associates, LP, One Harbor Center, LP and Westside Professional Center I, LP are considered to be voting securities under the 1940 Act. As of June 30, 2022, our investments in 1300 Main, LP, First & Main, LP, Dimensions 28, LLP, Green Valley Medical Center, LP, Main Street West, LP, Martin Plaza Associates, LP, One Harbor Center, LP, Westside Professional Center I, LP and Woodland Corporate Center Two, LP were considered to be voting securities under the 1940 Act. Therefore, these investments were shown as unconsolidated investments (non-security), at fair value in the consolidated balance sheets. For GAAP purposes, these investments have been recorded under the equity method investments, for which we have elected the fair value option as discussed above. |
Contingent Consideration in an Asset Acquisition | Contingent Consideration in an Asset Acquisition Contingent consideration recognized is included in the initial cost of the assets acquired. Subsequent changes in the recorded amount of contingent consideration will generally be recognized as an adjustment to the cost basis of the acquired assets, in accordance with ASC 323-10-35-14a and ASC 360-10-30-1. The subsequent changes will be allocated to the acquired assets based on their relative fair value at the date of acquisition. Subsequent change in contingent consideration impacts the cost basis of acquired assets, which may also impact the statement of operations through subsequent accounting for the acquired asset. We are aware of diversity in practice regarding the subsequent treatment of the statement of operations effect of changes to the cost basis of the acquired assets. We generally believe the depreciation or amortization of these assets should be recognized as a cumulative “catch up” adjustment, as if the additional amount of consideration that is no longer contingent had been accrued from the outset of the arrangement. |
Leases | Leases The three partnerships that we acquired during the nine months ended March 31, 2023; 1300 Main, Main Street West and Woodland Corporate Center Two had solar equipment leases in place at the time of our acquisition. Therefore, these existing solar leases were reassessed at the acquisition date and were recorded as finance leases in accordance with ASC 842. We record leases on the consolidated balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, lease incentives, and any impairment of the right-of-use asset. The discount rate used in determining the lease liability is based upon incremental borrowing rates that we could obtain for similar loans as of the date of commencement or renewal. We do not record leases on the consolidated balance sheets that are classified as short term (less than one year). At lease inception, we determine the lease term by considering the minimum lease term and all optional renewal periods that we are reasonably certain to renew. The lease term is also used to calculate straight-line rent expense. The depreciable life of leasehold improvements is limited by the estimated lease term, including renewals if they are reasonably certain to be renewed. Our leases do not contain residual value guarantees or material variable lease payments that will impact our ability to pay dividends or cause us to incur additional expenses. The amortization of the right-of-use asset arising from finance leases is expensed through depreciation and amortization expense and the interest on the related lease liability is expensed through interest expense on our consolidated statements of operations. |
Impairment of Real Estate Assets | Impairment of Real Estate Assets We continually monitor events and changes in circumstances that could indicate that the carrying value of our real estate and related intangible assets may not be recoverable. When indicators of potential impairment emerge, we assess whether we will recover the carrying value of the asset through our undiscounted future cash flows and our eventual disposition. Based on this assessment, if we do not believe that we will recover the carrying value of the real estate and related intangible assets, we 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. We did not record any impairment charges on our assets held for use during the nine months ended March 31, 2023. However, we recorded an impairment loss allowance of $8,121,089 on our assets held for sale during the nine months ended March 31, 2023, which is d |
Reportable Segments | Reportable Segments ASC 280, Segment Reporting |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
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 in the consolidated balance sheets as of March 31, 2023 and June 30, 2022: Investee Legal Form Asset Type % Ownership Fair Value as of March 31, 2023 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % $ 1,455,400 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % $ 4,100,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % $ 389,664 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % $ 837,860 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * $ 2,596,500 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * $ 640,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * $ 4,236,500 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * $ 1,849,000 Total $ 16,111,744 Investee Legal Form Asset Type % Ownership Fair Value as of June 30, 2022 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % $ 1,518,100 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % $ 5,000,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % $ 19,512,036 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % $ 806,290 Secured Income L.P. Limited Partnership LP Interest 6.57 % $ 520,594 1300 Main, LP Limited Partnership GP Interest 1.00 % * $ 1,688,000 First & Main, LP Limited Partnership GP Interest 1.00 % * $ 2,237,000 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * $ 3,010,000 Main Street West, LP Limited Partnership GP Interest 1.00 % * $ 4,708,000 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * $ 725,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * $ 4,162,000 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * $ 1,803,000 Woodland Corporate Center Two, LP Limited Partnership GP Interest 1.00 % * $ - Total $ 45,696,840 * The general partner has a 1% partnership interest but is also entitled to profit sharing distributions ranging from 25% to 50% after certain thresholds are met. |
INVESTMENTS IN REAL ESTATE (Tab
INVESTMENTS IN REAL ESTATE (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
INVESTMENTS IN REAL ESTATE [Abstract] | |
Consolidated Operating Properties Information | The following tables provide summary information regarding our operating properties which are owned through our subsidiaries. The ownership interest shown below is the percentage of the property owned by the subsidiary, not the percentage of the subsidiary owned by the Parent Company or the Operating Partnership. Consolidated Operating Properties Property Name: Addison Corporate Center Commodore Apartments Pon de Leo Apartments Hollywood Apartments Property Owner: Addison Property Owner, LLC Madison-PVT Partners LLC PVT-Madison Partners LLC PT Hillview GP, LLC Location: Windsor, CT Oakland, CA Oakland, CA Hollywood, CA Number of Tenants: 6 48 39 51 Year Built: 1980 1912 1929 1917 Ownership Interest: 100% 100% 100% 100% Property Name: Shoreline Apartments Satellite Place Office Building First & Main Office Building 1300 Main Office Building Property Owner: MacKenzie BAA IG Shoreline LLC MacKenzie Satellite Place Corp. First & Main, LP 1300 Main, LP Location: Concord, CA Duluth, GA Napa, CA Napa, CA Number of Tenants: 77 1 7 8 Year Built: 1968 2002 2001 2020 Ownership Interest: 100% 100% 100% 100% Property Name: Woodland Corporate Center Main Street West Office Building Property Owner: Woodland Corporate Center, Two, LP Main Street West, LP Location: Woodland, CA Napa, CA Number of Tenants: 14 7 Year Built: 2004 2007 Ownership Interest: 100% 100% |
Allocation of Real Estate Assets Acquired | The following table presents the allocation of real estate assets acquired during the nine months ended March 31, 2023 based on asset acquisition accounting. Property Name: First & Main Office Building Acquisition Date: July 23, 2022 Purchase Price Allocation Land $ 966,315 Building 15,597,370 Site Improvements 795,197 Tenant Improvements 524,399 Lease in Place 796,341 Leasing Commissions 347,204 Legal & Marketing Lease Up Costs 52,007 Total assets acquired 19,078,833 Net leasehold asset (liability) (220,100 ) Total assets acquired, net $ 18,858,733 Property Name: 1300 Main Office Building Acquisition Date: October 1, 2022 Purchase Price Allocation Land $ 805,575 Building 14,134,096 Tenant Improvements 323,882 Leaseholds 44,422 Lease In Place 682,140 Leasing Commissions 250,296 Legal & Marketing Lease Up Costs 57,849 Debt Mark-to-Market 338,000 Solar Finance Lease 76,715 Total assets acquired $ 16,712,975 Property Name: Woodland Corporate Center Acquisition Date: January 3, 2023 Purchase Price Allocation Land $ 1,840,468 Building 8,766,789 Site Improvements 564,014 Tenant Improvements 397,263 Lease In Place 790,382 Leasing Commissions 163,540 Legal & Marketing Lease Up Costs 77,264 Total assets acquired 12,599,720 Net leasehold asset (liability) ( 74,440 ) Total assets acquired, net $ 12,525,280 Property Name: Main Street West Office Building Acquisition Date: February 1, 2023 Purchase Price Allocation Land $ 1,433,698 Building 24,438,447 Site Improvements 9,956 Tenant Improvements 542,390 Lease In Place 926,521 Leasing Commissions 379,516 Legal & Marketing Lease Up Costs 41,152 Debt Mark-to-Market 717,000 Total assets acquired 28,488,681 Net leasehold asset (liability) ( 222,065 ) Total assets acquired, net $ 28,266,616 |
Components of Income From Real Estate Operations | The following table presents the components of income from real estate operations for the three and nine months ended March 31, 2023: Three Months Ended Nine Months Ended March 31, 2023 March 31, 2023 Lease Income - Operating leases $ 3,982,146 $ 9,979,740 Variable lease income (1) 487,723 1,232,884 $ 4,469,869 $ 11,212,624 (1) Primarily includes tenant reimbursements for utilities and common area maintenance. The following table presents the components of income from real estate operations for the three and nine months ended March 31, 2022: Three Months Ended Nine Months Ended March 31, 2022 March 31, 2022 Lease Income - Operating leases $ 2,137,406 $ 6,527,631 Variable lease income (1) 381,237 1,283,808 $ 2,518,643 $ 7,811,439 (1) Primarily includes tenant reimbursements for utilities and common area maintenance. |
Real Estate Properties Under Non-Cancelable Operating Leases | As of March 31, 2023, the future minimum rental income from our real estate properties under non-cancelable operating leases are as follows: Year ended June 30, : Rental Income 2023 $ 2,262,297 2024 7,397,044 2025 5,939,945 2026 4,577,398 2027 3,615,567 Thereafter 12,352,580 Total $ 36,144,831 |
Acquired Lease Intangibles, Above-Market Lease Assets and Below-Market Lease Liabilities | As of March 31, 2023, our 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 $ 7,757,557 $ 419,166 $ 2,346,666 Accumulated amortization (1,676,388 ) (41,227 ) (811,716 ) Total $ 6,081,169 $ 377,939 $ 1,534,950 Weighted average amortization period (years) 4.9 5.4 5.1 As of June 30, 2022, our acquired lease intangibles, above-market lease assets and below-market lease liabilities, were as follows: Lease Intangibles Above-Market Lease Asset Below-Market Cost $ 2,889,828 $ - $ 1,455,317 Accumulated amortization (586,168 ) - (391,738 ) Total $ 2,303,660 $ - $ 1,063,579 Weighted average amortization period (years) 5.2 - 4.9 |
Amortization of Lease Intangibles, Above-Market Lease Assets And Below-Market Lease Liabilities | Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for three and nine months ended March 31, 2023, were as follows: Three Months Ended March 31, 2023 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 588,069 $ 26,687 $ (222,424 ) Nine Months Ended March 31, 2023 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 1,090,220 $ 41,227 $ (419,978 ) Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for three and nine months ended March 31, 2022, were as follows: Three Months Ended March 31, 2022 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 432,540 $ 31,976 $ (69,099 ) Nine Months Ended March 31, 2022 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 1,223,665 $ 95,928 $ (217,809 ) |
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, : 2023 (remainder) 2024 2025 2026 2027 Thereafter In-place leases, to be included in amortization $ 446,347 $ 1,603,609 $ 1,285,141 $ 897,073 $ 520,119 $ 1,328,880 Above-market lease intangibles 29,426 115,725 70,864 41,731 30,177 90,016 Below-market lease liabilities (124,859 ) (451,247 ) (286,084 ) (195,626 ) (158,666 ) (318,468 ) $ (95,433 ) $ (335,522 ) $ (215,220 ) $ (153,895 ) $ (128,489 ) $ (228,452 ) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
INVESTMENTS [Abstract] | |
Composition of Investments at Fair Value | The following table summarizes the composition of our equity method investments with fair value option election and other equity securities at fair value as of March 31, 2023 and June 30, 2022: Fair Value Fair Value Asset Type March 31, 2023 June 30, 2022 Non Traded Companies $ 8,438,289 $ 11,517,226 GP Interests (Equity method investment with fair value option election) 9,322,000 18,333,000 LP Interest 168,960 330,000 LP Interests (Equity method investment with fair value option election) 6,789,744 27,363,840 Investment Trust - 49,178 Total $ 24,718,993 $ 57,593,244 |
Fair Value Measurements of Investments | The following table presents fair value measurements of our investments as of March 31, 2023, according to the fair value hierarchy that is described in our annual report on Form 10-K: Asset Type Total Level I Level II Level III Non Traded Companies $ 8,438,289 $ - $ - $ 8,438,289 GP Interests 9,322,000 - - 9,322,000 LP Interests 6,958,704 - - 6,958,704 Total $ 24,718,993 $ - $ - $ 24,718,993 The following table presents fair value measurements of our investments as of June 30, 2022, according to the fair value hierarchy that is described in our annual report on Form 10-K: Asset Type Total Level I Level II Level III Non Traded Companies $ 11,517,226 $ - $ - $ 11,517,226 GP Interests 18,333,000 - - 18,333,000 LP Interests 27,693,840 - - 27,693,840 Investment Trust 49,178 - - 49,178 Total $ 57,593,244 $ - $ - $ 57,593,244 |
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 nine months ended March 31, 2023: Balance at July 1, 2022 $ 57,593,244 Purchases of investments 303,884 Transfers to Level I (30,753 ) Transfer to Investments in Real Estate (8,488,467 ) Proceeds from sales, net (3,163,025 ) Return of capital distributions (12,298,337 ) Written off contingent consideration (57,875 ) Net realized gains 821,375 Net unrealized loss (9,961,053 ) Ending balance at March 31, 2023 $ 24,718,993 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 nine months ended March 31, 2022: Balance at July 1, 2021 $ 70,340,043 Purchases of investments 3,343,802 Transfers to Level I (230,160 ) Proceeds from sales, net (29,230,856 ) Return of capital distributions (11,807,238 ) Net realized gain 8,765,565 Net unrealized gains 6,170,851 Ending balance at March 31, 2022 $ 47,352,007 |
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 March 31, 2023: Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Company $ 955,737 Estimated Liquidation Value Sponsor provided value 20% Non Traded Companies 7,482,552 Market Activity Secondary market industry publication GP Interests 9,322,000 Direct Capitalization Method Capitalization rate 6.3% - 6.5% 6.4% Discount rate 6.8% - 7.0% 7.0% LP Interests 6,393,260 Discounted Cash Flow Discount rate 6.3% - 9.0% 6.6% LP Interests 396,484 Estimated Liquidation Value Sponsor provided value 0% - 12.0% 0.2% LP Interest 168,960 Market Activity Contracted sale of property $ 24,718,993 The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2022: Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Companies $ 1,011,081 Estimated Liquidation Value Sponsor provided value Liquidity discount 25.0% - 75.0% 25.0% Non Traded Companies 10,506,145 Market Activity Secondary market industry publication Contracted purchase of security GP Interests 18,333,000 Market Activity Contracted purchase price LP Interests 21,550,730 Direct Capitalization Method Capitalization rate 4.0% - 5.0% 4.2% Liquidity discount 15% LP Interests 5,806,290 Discounted Cash Flow Discount rate 6.3% - 9.0% 8.6% LP Interest 6,820 Estimated Liquidation Value Sponsor provided value Liquidity discount 12% LP Interest 330,000 Market Activity Secondary market industry publication Investment Trust 49,178 Direct Capitalization Method Capitalization rate 5% Liquidity discount 15% $ 57,593,244 |
Aggregated Summarized Financial Information of Investees | The summarized financial information of Dimension 28, LLP and aggregated summarized financial information of all equity method investees as of March 31, 2023 is as follows: Dimension 28, LP All Equity Method Total Assets $ 1,147,171 $ 94,267,563 Total Liabilities $ 10,125 $ 70,626,037 Total Equities $ 1,137,046 $ 23,641,526 Total Revenues $ 31,719,093 $ 42,450,387 Total Expenses $ 5,212,716 $ 14,114,665 Total Net Income $ 26,506,377 $ 28,335,722 |
ACQUISITIONS AND HELD FOR SALE
ACQUISITIONS AND HELD FOR SALE (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
ACQUISITIONS AND HELD FOR SALE [Abstract] | |
Purchase Price Allocation of General Partnership Interests Acquired | As discussed in Note 1, on May 6, 2022, the Operating Partnership purchased 100% of the membership interests in the eight Management Companies that own the general partnership interests in eight limited partnerships, each of which own a Class A or B office property in Napa, Fairfield, Suisun City or Woodland, California. Each Management Company is the sole general partner of each of the limited partnerships as disclosed in the following table: General Partnership Interests Management Companies Total Purchase Price 1300 Main, LP 1300 Main, LLC $ 1,688,000 First & Main, LP First & Main, LLC 2,237,000 Green Valley Medical Center, LP Green Valley Medical Center, LLC 3,010,000 Main Street West, LP Main Street West, LLC 4,708,000 Martin Plaza Associates, LP Martin Plaza, LLC 725,000 One Harbor Center, LP One Harbor Center, LLC 4,162,000 Westside Professional Center I, LP Westside Professional Center, LLC 1,803,000 Woodland Corporate Center Two, LP Woodland Corporate Center, LLC - Total $ 18,333,000 |
Acquisition of General Partnership Interests In Exchange for Cash, Preferred Units in Operating Partnership and Contingent Liability | The acquisition of general partnership interests was made in exchange for cash, preferred units in the Operating Partnership, and, in some cases, a contingent liability as shown below: General Partnership Interests Number of Preferred Units issued Amount of Preferred Units issued Cash Payments Contingent liability Total Purchase Price 1300 Main, LP - $ - $ 1,688,000 $ - $ 1,688,000 First & Main, LP 99,422.22 2,237,000 - - 2,237,000 Green Valley Medical Center, LP - - 2,410,000 600,000 3,010,000 Main Street West, LP - - 3,850,000 858,000 4,708,000 Martin Plaza Associates, LP 26,977.78 607,000 - 118,000 725,000 One Harbor Center, LP 80,266.67 1,806,000 1,571,000 785,000 4,162,000 Westside Professional Center I, LP - - 1,449,000 354,000 1,803,000 Woodland Corporate Center Two, LP - - - - - Total 206,666.67 $ 4,650,000 $ 10,968,000 $ 2,715,000 $ 18,333,000 |
Major Classes of Assets and Liabilities Classified as Held For Sale | The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our consolidated balance sheets: March 31, 2023 June 30, 2022 Assets Real estate assets Land $ 6,456,615 $ 6,456,615 Building, fixtures and improvements 19,657,181 19,108,041 Intangible lease assets 5,225,719 5,154,568 Less: accumulated depreciation and amortization (5,112,309 ) (5,112,309 ) Total real estate assets, net 26,227,206 25,606,915 Cash 534,757 505,186 Investments income, rents and other receivables 505,835 490,239 Due from related entities - 401 Prepaid expenses and other assets 316,011 14,301 Allowance for impairment of assets held for sale (17,247,550 ) (9,126,461 ) Total assets $ 10,336,259 $ 17,490,581 Liabilities Deferred rent and other liabilities $ 445,243 $ 410,908 Accounts payable and accrued liabilities 1,204,029 334,081 Total liabilities $ 1,649,272 $ 744,989 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
LEASES [Abstract] | |
Balance Sheet Classification | Right-of-use assets and lease liabilities by lease type, and the associated balance sheet classifications, are as follows: Balance Sheet Classification March 31, 2023 Right-of-use assets: Finance leases Real estate assets, net $ 651,121 Lease liabilities: Finance leases Finance lease liabilities $ 642,483 We have included these leases in real estate assets, net March 31, 2023 Building, fixtures and improvements $ 658,695 Accumulated depreciation (7,574 ) $ 651,121 |
Components of Total Lease Cost | The components of total lease cost were as follows for the nine months ended March 31, 2023: March 31, 2023 Finance lease cost Right-of-use asset amortization $ 7,574 Interest expense 11,238 Total lease cost $ 18,812 |
Future Undiscounted Lease Payments for Finance Leases | Future undiscounted lease payments for finance leases with initial terms of one year or more are as follows: Fiscal Year Ending June 30, : Finance Leases 2023 (remainder) $ 21,271 2024 86,361 2025 89,813 2026 93,408 2027 97,079 Thereafter 387,042 Total undiscounted lease payments 774,974 Less: Imputed interest (132,491 ) Net lease liabilities $ 642,483 |
Supplemental Finance Lease Information | Supplemental Lease Information March 31, 2023 Finance lease weighted average remaining lease term (years) 7.78 years Finance lease weighted average discount rate 5.0 % Cash paid for amounts included in the measurement of lease liabilities Financing cash flows from finance leases $ 16,213 Right-of-use assets obtained in exchange for new finance lease liabilities $ 658,695 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
Summary of the Nonconsolidated VIE | The table below presents a summary of the nonconsolidated VIEs in which we hold variable interests: Total Nonconsolidated VIEs As of March 31, 2023 As of June 30, 2022 Fair value of investments in VIEs $ 6,958,704 $ 27,693,840 Carrying value of variable interests - assets $ 8,557,139 $ 19,304,856 Maximum Exposure to Loss: Limited Partnership Interest $ 8,557,139 $ 19,304,856 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Annual Asset Management Fees | The asset management fees mentioned above were based on the following quarter ended Invested Capital segregated in three columns based on the annual fee rate: Asset Management Fee Annual % 3.0% 2.0% 1.5% Total Invested Capital Quarter ended: September 30, 2022 $ 20,000,000 $ 80,000,000 $ 48,639,649 $ 148,639,649 December 31, 2022 $ 20,000,000 $ 80,000,000 $ 52,470,792 $ 152,470,792 March 31, 2023 $ 20,000,000 $ 80,000,000 $ 60,153,751 $ 160,153,751 Quarter ended: September 30, 2021 $ 20,000,000 $ 80,000,000 $ 33,927,634 $ 133,927,634 December 31, 2021 $ 20,000,000 $ 80,000,000 $ 34,242,127 $ 134,242,127 March 31, 2022 $ 20,000,000 $ 80,000,000 $ 35,848,952 $ 135,848,952 |
Related Party Expenses | The table below outlines the related party expenses incurred for the three and nine months ended March 31, 2023 and 2022, and unpaid as of March 31, 2023, and June 30, 2022. Nine Months Ended Unpaid as of Types and Recipient March 31, 2023 March 31, 2022 March 31, 2023 June 30, 2022 Asset management fees- the Real Estate Adviser $ 2,225,085 $ 2,034,852 $ - $ - Asset acquisition fees- the Real Estate Adviser (3) 1,878,356 - - - Administrative cost reimbursements- MacKenzie 544,500 457,200 - - Transfer agent cost reimbursements - MacKenzie 69,000 79,801 - - Organization & Offering Cost (2) 410,214 391,546 186,273 141,397 Other expenses (1) - - 7,150 72,697 Due to related entities $ 193,423 $ 214,094 (1) (2) (3) Asset acquisition fees paid to the Real Estate Adviser were capitalized as a part of the real estate basis in accordance with our policy. The acquisition fee paid during the nine months ended March 31, 2023 was for the acquisition of First & Main in July 2022, 1300 Main in October 2022, Woodland Corporate Center Two in January 2023 and Main Street West in February 2023 . |
MORTGAGE NOTES PAYABLE AND DE_2
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Debt Instrument [Line Items] | |
Projected Principal and Interest Payments | The following table provides the projected principal and interest payments on the loan for the next four years: Fiscal Year Ending June 30, : Principal Interest 2023 (remainder) $ 79,373 $ 106,321 2024 324,747 417,753 2025 337,136 405,363 2026 10,626,030 230,553 Total $ 11,367,286 $ 1,159,990 |
1300 Main, LP [Member] | |
Debt Instrument [Line Items] | |
Projected Principal and Interest Payments | The following table provides the projected principal and interest payments on the loan for the next five years: Fiscal Year Ending June 30, : Principal Interest 2023 (remainder) $ 56,863 $ 98,033 2024 254,196 383,254 2025 360,159 367,933 2026 377,129 350,963 2027 394,900 333,192 Thereafter 7,006,613 562,666 Total $ 8,449,860 $ 2,096,041 |
Woodland Corporate Center Two, LP [Member] | |
Debt Instrument [Line Items] | |
Projected Principal and Interest Payments | The following table provides the projected principal and interest payments on the loan for the next three years: Fiscal Year Ending June 30, : Principal Interest 2023 (remainder) $ 48,661 $ 72,758 2024 201,377 284,221 2025 6,626,544 92,832 Total $ 6,876,582 $ 449,811 |
Main Street West Mortgage [Member] | |
Debt Instrument [Line Items] | |
Projected Principal and Interest Payments | The following table provides the projected principal and interest payments on the loan for the next five years: Fiscal Year Ending June 30, : Principal Interest 2023 (remainder) $ 108,654 $ 156,101 2024 453,824 605,199 2025 472,314 586,709 2026 491,557 567,466 2027 511,584 547,440 Thereafter 13,406,365 266,679 Total $ 15,444,298 $ 2,729,594 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
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 nine months ended March 31, 2023 and 2022: Nine Months Ended March 31, 2023 Nine Months Ended March 31, 2022 Net income (loss) attributable to common stockholders $ (14,397,810 ) $ 15,216,402 Basic and diluted weighted average common shares outstanding 13,282,666.75 13,359,538.60 Basic and diluted earnings per share $ (1.08 ) $ 1.14 |
SHARE REPURCHASE PLAN (Tables)
SHARE REPURCHASE PLAN (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
SHARE REPURCHASE PLAN [Abstract] | |
Repurchased Shares | During the nine months ended March 31, 2023, we repurchased our own shares through our Share Repurchase Program and through third-party auctions as noted in the below table: Period Total Number Average Repurchase Price Per Share Total Repurchase Consideration During the nine months ended March 31, 2023 September 1, 2022 through September 30, 2022 40,817.06 $ 9.47 $ 386,385 December 1, 2022 through December 31, 2022 44,048.79 $ 9.44 415,968 March 1, 2023 through March 31, 2023 58,896.45 $ 7.38 434,656 143,762.30 $ 1,237,009 During the nine months ended March 31, 2022, we repurchased our own shares as noted in the below table: Period Total Number Average Repurchase Price Per Share Total Repurchase Consideration During the nine months ended March 31, 2022 December 22, 2021 5,607.89 $ 9.84 $ 55,188 January 6, 2022 through March 31, 2022 125,677.16 $ 9.15 1,149,490 131,285.05 $ 1,204,678 |
STOCKHOLDER DIVIDENDS (Tables)
STOCKHOLDER DIVIDENDS (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
STOCKHOLDER DIVIDENDS [Abstract] | |
Stockholder Dividends | The following table reflects the dividends per share that we have declared on our common stock and preferred stock during the nine months ended March 31, 2023: Dividends Common Stock Preferred Stock During the Quarter Ended Per Share Amount Per Share Amount September 30, 2022 $ 0.105 $ 1,390,290 $ 0.375 $ 87,884 December 31, 2022 0.110 1,456,391 0.375 155,909 March 31, 2023 0.115 1,520,985 0.375 209,620 $ 0.330 $ 4,367,666 $ 1.125 $ 453,413 The following table reflects the dividends per share that we have declared on our common stock during the nine months ended March 31, 2022: Dividends Common stock Preferred stock During the Quarter Ended Per Share Amount Per Share Amount September 30, 2021 $ 0.130 * $ 1,731,482 $ - $ - December 31, 2021 0.080 1,068,612 0.125 440 March 31, 2022 0.090 1,193,841 0.375 18,507 $ 0.300 $ 3,993,935 $ 0.500 $ 18,947 * 0.06 per share dividend was declared for the quarter ended June 30, 2021. |
PRINCIPAL BUSINESS AND ORGANI_2
PRINCIPAL BUSINESS AND ORGANIZATION (Details) | 1 Months Ended | 9 Months Ended | |||||||||||||||||||
Feb. 01, 2023 USD ($) | Jan. 03, 2023 USD ($) shares | Oct. 01, 2022 USD ($) | Jul. 29, 2022 USD ($) shares | Jun. 01, 2022 USD ($) ft² a Shareholder | May 06, 2022 USD ($) Land Company shares | Oct. 31, 2019 shares | Dec. 31, 2016 shares | Oct. 31, 2016 shares | Sep. 30, 2022 shares | Mar. 31, 2022 shares | Mar. 31, 2021 Building Company | Mar. 31, 2023 USD ($) Company Offering $ / shares shares | Mar. 31, 2022 shares | Feb. 27, 2023 $ / shares | Feb. 06, 2023 USD ($) | Oct. 14, 2022 USD ($) | Jun. 30, 2022 $ / shares shares | Jan. 25, 2022 | Oct. 04, 2021 | Apr. 13, 2021 USD ($) $ / shares | |
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Total shares authorized for issue (in shares) | shares | 100,000,000 | ||||||||||||||||||||
Common stock, authorized (in shares) | 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) | shares | 20,000,000 | 20,000,000 | |||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||||||||
Common stock, Initial public offering (in shares) | shares | 15,000,000 | 15,000,000 | 5,000,000 | ||||||||||||||||||
Capital contribution by parent | $ 71,671,717 | ||||||||||||||||||||
Number of operating companies | Company | 2 | ||||||||||||||||||||
Number of residential apartment buildings to acquire and operate | Building | 2 | ||||||||||||||||||||
Portfolio risk concentration, percentage | 20% | ||||||||||||||||||||
Proceeds from public offerings | $ 119,100,000 | ||||||||||||||||||||
Number of public offering | Offering | 3 | ||||||||||||||||||||
Proceeds from dividend reinvestment plan | $ 13,800,000 | ||||||||||||||||||||
Payment to repurchase shares | $ 12,880,000 | ||||||||||||||||||||
Dividend reinvestment plan, share price (in dollars per share) | $ / shares | $ 7.38 | ||||||||||||||||||||
First & Main, LP [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Percentage of economic interest acquired | 100% | ||||||||||||||||||||
Purchase price of interests acquired | $ 3,376,322 | $ 2,237,000 | |||||||||||||||||||
Purchase price paid through issuance of shares | $ 2,711,378 | ||||||||||||||||||||
1300 Main, LP [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Percentage of economic interest acquired | 100% | ||||||||||||||||||||
Purchase price of interests acquired | $ 6,480,582 | 1,688,000 | |||||||||||||||||||
Woodland Corporate Center Two, LP [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Percentage of economic interest acquired | 100% | ||||||||||||||||||||
Purchase price of interests acquired | $ 5,636,966 | 0 | |||||||||||||||||||
Purchase price paid through issuance of shares | $ 3,242,557 | ||||||||||||||||||||
Shares issued (in shares) | shares | 144,113.63 | ||||||||||||||||||||
Main Street West, LP [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Percentage of economic interest acquired | 100% | ||||||||||||||||||||
Purchase price of interests acquired | $ 8,277,016 | $ 4,708,000 | |||||||||||||||||||
MRC Aurora, LLC [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Preferred capital from operating partnership | $ 10,000,000 | ||||||||||||||||||||
Hollywood Hillview [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Percentage of economic interest acquired | 90% | ||||||||||||||||||||
Remaining percentage of economic interest | 10% | ||||||||||||||||||||
PT Hillview [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Operating Partnership, ownership interest | 100% | ||||||||||||||||||||
MacKenzie-BAA IG Shoreline, LLC [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Percentage of economic interest acquired | 98% | ||||||||||||||||||||
Remaining percentage of economic interest | 2% | ||||||||||||||||||||
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% | ||||||||||||||||||||
FSP Satellite Place [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Rentable Space | ft² | 134,785 | ||||||||||||||||||||
Area of Land Rentable Space Located | a | 10 | ||||||||||||||||||||
Number of shareholders exception for cash payment | Shareholder | 2 | ||||||||||||||||||||
Wiseman Company LLC [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Number of operating companies | Company | 8 | ||||||||||||||||||||
Percentage of economic interest acquired | 100% | ||||||||||||||||||||
Number of parcel entitled land acquired | Land | 1 | ||||||||||||||||||||
Purchase price of interests acquired | $ 18,333,000 | ||||||||||||||||||||
Purchase price of parcel entitled land acquired | 3,050,000 | ||||||||||||||||||||
Purchase price paid through issuance of shares | 4,650,000 | ||||||||||||||||||||
Purchase price of parcel entitled land paid through issuance of shares | $ 750,000 | ||||||||||||||||||||
Number of active partnerships | Company | 9 | ||||||||||||||||||||
Period for right to acquire each property at pre-determined prices in following years | 2 years | ||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Shares issued (in shares) | shares | 169.67 | 212.19 | |||||||||||||||||||
Common Stock [Member] | FSP Satellite Place [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Payments to acquire economic interest | $ 27,503 | ||||||||||||||||||||
Preferred Stock [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Shares issued (in shares) | shares | 80,014.57 | ||||||||||||||||||||
Preferred Stock [Member] | First & Main, LP [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Shares issued (in shares) | shares | 120,505.66 | ||||||||||||||||||||
Preferred Stock [Member] | Operating Partnership [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 25 | ||||||||||||||||||||
Operating Partnership shares, amount entitled to receive | $ 11,795,110.75 | ||||||||||||||||||||
Preferred Stock [Member] | FSP Satellite Place [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Payments to acquire economic interest | $ 13,752 | ||||||||||||||||||||
Preferred Stock [Member] | Wiseman Company LLC [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Shares issued (in shares) | shares | 206,666.67 | ||||||||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Preferred stock, authorized amount | $ 75,000,000 | $ 50,000,000 | |||||||||||||||||||
Preferred stock initial offering price (in dollars per share) | $ / shares | $ 25 | ||||||||||||||||||||
Proceeds from public offerings | $ 14,410,000 | ||||||||||||||||||||
Series A Preferred Stock [Member] | Operating Partnership [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Operating Partnership shares owned (in shares) | shares | 471,804.43 | ||||||||||||||||||||
Operating Partnership, ownership interest | 15% | ||||||||||||||||||||
Class A [Member] | Operating Partnership [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 10.25 | ||||||||||||||||||||
Operating Partnership shares owned (in shares) | shares | 89,552.61 | ||||||||||||||||||||
Operating Partnership, ownership interest | 15% | ||||||||||||||||||||
Class A [Member] | Wiseman Company LLC [Member] | |||||||||||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||||||||||
Shares issued (in shares) | shares | 77,881.62 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Capital Pending Acceptance (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Capital Pending Acceptance [Abstract] | ||
Capital pending acceptance | $ 549,400 | $ 85,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Income Taxes and Deferred Tax Liability (Details) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) Entity | Jun. 30, 2022 USD ($) | |
Income Taxes and Deferred Tax Liability [Abstract] | |||
Percentage of excise tax on catch-up distributions paid in the subsequent year | 4% | ||
Number of entities income tax liabilities flow through to partners | Entity | 2 | ||
Uncertain tax positions | $ 0 | $ 0 | |
Tax Year 2022 [Member] | TRS and MacKenzie NY 2 [Member] | |||
Income Taxes and Deferred Tax Liability [Abstract] | |||
Taxable income | $ 0 | ||
Tax Year 2023 [Member] | TRS and MacKenzie NY 2 [Member] | |||
Income Taxes and Deferred Tax Liability [Abstract] | |||
Taxable income | 0 | ||
Income tax expense (benefit) | $ 0 | ||
Minimum [Member] | |||
Income Taxes and Deferred Tax Liability [Abstract] | |||
Percentage of taxable income annual distributions | 90% | ||
Maximum [Member] | |||
Income Taxes and Deferred Tax Liability [Abstract] | |||
Percentage of taxable income annual distributions | 100% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, List of Investments (Details) - USD ($) | 1 Months Ended | |||
Jan. 31, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | ||
Fair Value Option [Abstract] | ||||
Fair Value | $ 16,111,744 | $ 45,696,840 | ||
GP Interests [Member] | Minimum [Member] | ||||
Fair Value Option [Abstract] | ||||
Distribution percentage | 25% | |||
GP Interests [Member] | Maximum [Member] | ||||
Fair Value Option [Abstract] | ||||
Distribution percentage | 50% | |||
5210 Fountaingate, LP [Member] | Limited Partnership [Member] | LP Interest [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | 9.92% | 9.92% | ||
Fair Value | $ 6,820 | $ 6,820 | ||
Capitol Hill Partners, LLC [Member] | Limited Liability Company [Member] | LP Interest [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | 23.33% | 23.33% | ||
Fair Value | $ 1,455,400 | $ 1,518,100 | ||
Citrus Park Hotel Holdings, LLC [Member] | Limited Liability Company [Member] | LP Interest [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | 35.27% | 35.27% | ||
Fair Value | $ 4,100,000 | $ 5,000,000 | ||
Dimensions 28, LLP [Member] | ||||
Fair Value Option [Abstract] | ||||
Proceeds from sale of property by investee | $ 21,110,000 | |||
Dimensions 28, LLP [Member] | Limited Partnership [Member] | LP Interest [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | 90% | 90% | ||
Fair Value | $ 389,664 | $ 19,512,036 | ||
Lakemont Partners, LLC [Member] | Limited Liability Company [Member] | LP Interest [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | 17.10% | 17.10% | ||
Fair Value | $ 837,860 | $ 806,290 | ||
Secured Income L.P. [Member] | Limited Partnership [Member] | LP Interest [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | 6.57% | |||
Fair Value | $ 520,594 | |||
1300 Main, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | [1] | 1% | ||
Fair Value | $ 1,688,000 | |||
First & Main, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | [1] | 1% | ||
Fair Value | $ 2,237,000 | |||
Green Valley Medical Center, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | [1] | 1% | 1% | |
Fair Value | $ 2,596,500 | $ 3,010,000 | ||
Main Street West, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | [1] | 1% | ||
Fair Value | $ 4,708,000 | |||
Martin Plaza Associates, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | [1] | 1% | 1% | |
Fair Value | $ 640,000 | $ 725,000 | ||
One Harbor Center, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | [1] | 1% | 1% | |
Fair Value | $ 4,236,500 | $ 4,162,000 | ||
Westside Professional Center I, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | [1] | 1% | 1% | |
Fair Value | $ 1,849,000 | $ 1,803,000 | ||
Woodland Corporate Center Two, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | [1] | 1% | ||
Fair Value | $ 0 | |||
Total Ownership Interests [Member] | GP Interests [Member] | ||||
Fair Value Option [Abstract] | ||||
Ownership percentage | 1% | |||
[1]The general partner has a 1% partnership interest but is also entitled to profit sharing distributions ranging from 25% to 50% after certain thresholds are met. |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Impairment of Real Estate Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Impairment of Real Estate Assets [Abstract] | ||||
Impairment charges of real estate assets | $ 0 | |||
Impairment loss on assets held for sale | $ 6,207,743 | $ 0 | $ 8,121,089 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Reportable Segments (Details) | 9 Months Ended |
Mar. 31, 2023 Segment | |
Reportable Segments [Abstract] | |
Number of reportable segments | 1 |
INVESTMENTS IN REAL ESTATE, Sum
INVESTMENTS IN REAL ESTATE, Summary (Details) | 3 Months Ended | 9 Months Ended | ||||||
Feb. 01, 2023 USD ($) | Jan. 03, 2023 USD ($) | Oct. 01, 2022 USD ($) | Jul. 23, 2022 USD ($) | Mar. 31, 2023 USD ($) Tenant | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) Tenant | Mar. 31, 2022 USD ($) | |
Purchase Price Allocation [Abstract] | ||||||||
Depreciation expenses | $ 1,047,603 | $ 713,955 | $ 2,606,536 | $ 2,001,524 | ||||
Addison Corporate Center [Member] | ||||||||
Consolidated Operating Properties [Abstract] | ||||||||
Property name | Addison Corporate Center | |||||||
Property Owner | Addison Property Owner, LLC | |||||||
Location | Windsor, CT | |||||||
Number of tenants | Tenant | 6 | 6 | ||||||
Year built | 1980 | |||||||
Ownership interest | 100% | 100% | ||||||
Commodore Apartment [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% | 100% | ||||||
Pon Do Leo Apartment [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% | 100% | ||||||
Hollywood Property [Member] | ||||||||
Consolidated Operating Properties [Abstract] | ||||||||
Property name | Hollywood Apartments | |||||||
Property Owner | PT Hillview GP, LLC | |||||||
Location | Hollywood, CA | |||||||
Number of tenants | Tenant | 51 | 51 | ||||||
Year built | 1917 | |||||||
Ownership interest | 100% | 100% | ||||||
Shoreline Apartments [Member] | ||||||||
Consolidated Operating Properties [Abstract] | ||||||||
Property name | Shoreline Apartments | |||||||
Property Owner | MacKenzie BAA IG Shoreline LLC | |||||||
Location | Concord, CA | |||||||
Number of tenants | Tenant | 77 | 77 | ||||||
Year built | 1968 | |||||||
Ownership interest | 100% | 100% | ||||||
Satellite Place [Member] | ||||||||
Consolidated Operating Properties [Abstract] | ||||||||
Property name | Satellite Place Office Building | |||||||
Property Owner | MacKenzie Satellite Place Corp. | |||||||
Location | Duluth, GA | |||||||
Number of tenants | Tenant | 1 | 1 | ||||||
Year built | 2002 | |||||||
Ownership interest | 100% | 100% | ||||||
First & Main Office Building [Member] | ||||||||
Consolidated Operating Properties [Abstract] | ||||||||
Property name | First & Main Office Building | |||||||
Property Owner | First & Main, LP | |||||||
Location | Napa, CA | |||||||
Number of tenants | Tenant | 7 | 7 | ||||||
Year built | 2001 | |||||||
Ownership interest | 100% | 100% | ||||||
Asset Acquisitions [Abstract] | ||||||||
Property Name | First & Main Office Building | |||||||
Acquisition Date | Jul. 23, 2022 | |||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | $ 19,078,833 | |||||||
Net leasehold asset (liability) | (220,100) | |||||||
Total assets acquired, net | 18,858,733 | |||||||
First & Main Office Building [Member] | Land [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 966,315 | |||||||
First & Main Office Building [Member] | Building [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 15,597,370 | |||||||
First & Main Office Building [Member] | Site Improvements [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 795,197 | |||||||
First & Main Office Building [Member] | Tenant Improvements [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 524,399 | |||||||
First & Main Office Building [Member] | Lease in Place [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 796,341 | |||||||
First & Main Office Building [Member] | Leasing Commissions [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 347,204 | |||||||
First & Main Office Building [Member] | Legal & Marketing Lease Up Costs [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | $ 52,007 | |||||||
1300 Main Office Building [Member] | ||||||||
Consolidated Operating Properties [Abstract] | ||||||||
Property name | 1300 Main Office Building | |||||||
Property Owner | 1300 Main, LP | |||||||
Location | Napa, CA | |||||||
Number of tenants | Tenant | 8 | 8 | ||||||
Year built | 2020 | |||||||
Ownership interest | 100% | 100% | ||||||
Asset Acquisitions [Abstract] | ||||||||
Property Name | 1300 Main Office Building | |||||||
Acquisition Date | Oct. 01, 2022 | |||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | $ 16,712,975 | |||||||
1300 Main Office Building [Member] | Land [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 805,575 | |||||||
1300 Main Office Building [Member] | Building [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 14,134,096 | |||||||
1300 Main Office Building [Member] | Tenant Improvements [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 323,882 | |||||||
1300 Main Office Building [Member] | Leaseholds [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 44,422 | |||||||
1300 Main Office Building [Member] | Lease in Place [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 682,140 | |||||||
1300 Main Office Building [Member] | Leasing Commissions [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 250,296 | |||||||
1300 Main Office Building [Member] | Legal & Marketing Lease Up Costs [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 57,849 | |||||||
1300 Main Office Building [Member] | Debt Mark-to-Market [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 338,000 | |||||||
Total assets acquired, net | $ 231,263 | |||||||
1300 Main Office Building [Member] | Solar Finance Lease [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | $ 76,715 | |||||||
Woodland Corporate Center [Member] | ||||||||
Consolidated Operating Properties [Abstract] | ||||||||
Property name | Woodland Corporate Center | |||||||
Property Owner | Woodland Corporate Center, Two, LP | |||||||
Location | Woodland, CA | |||||||
Number of tenants | Tenant | 14 | 14 | ||||||
Year built | 2004 | |||||||
Ownership interest | 100% | 100% | ||||||
Asset Acquisitions [Abstract] | ||||||||
Property Name | Woodland Corporate Center | |||||||
Acquisition Date | Jan. 03, 2023 | |||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | $ 12,599,720 | |||||||
Net leasehold asset (liability) | (74,440) | |||||||
Total assets acquired, net | 12,525,280 | |||||||
Woodland Corporate Center [Member] | Land [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 1,840,468 | |||||||
Woodland Corporate Center [Member] | Building [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 8,766,789 | |||||||
Woodland Corporate Center [Member] | Site Improvements [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 564,014 | |||||||
Woodland Corporate Center [Member] | Tenant Improvements [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 397,263 | |||||||
Woodland Corporate Center [Member] | Lease in Place [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 790,382 | |||||||
Woodland Corporate Center [Member] | Leasing Commissions [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 163,540 | |||||||
Woodland Corporate Center [Member] | Legal & Marketing Lease Up Costs [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | $ 77,264 | |||||||
Main Street West Office Building [Member] | ||||||||
Consolidated Operating Properties [Abstract] | ||||||||
Property name | Main Street West Office Building | |||||||
Property Owner | Main Street West, LP | |||||||
Location | Napa, CA | |||||||
Number of tenants | Tenant | 7 | 7 | ||||||
Year built | 2007 | |||||||
Ownership interest | 100% | 100% | ||||||
Asset Acquisitions [Abstract] | ||||||||
Property Name | Main Street West Office Building | |||||||
Acquisition Date | Feb. 01, 2023 | |||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | $ 28,488,681 | |||||||
Net leasehold asset (liability) | (222,065) | |||||||
Total assets acquired, net | 28,266,616 | |||||||
Main Street West Office Building [Member] | Land [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 1,433,698 | |||||||
Main Street West Office Building [Member] | Building [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 24,438,447 | |||||||
Main Street West Office Building [Member] | Site Improvements [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 9,956 | |||||||
Main Street West Office Building [Member] | Tenant Improvements [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 542,390 | |||||||
Main Street West Office Building [Member] | Lease in Place [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 926,521 | |||||||
Main Street West Office Building [Member] | Leasing Commissions [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 379,516 | |||||||
Main Street West Office Building [Member] | Legal & Marketing Lease Up Costs [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | 41,152 | |||||||
Main Street West Office Building [Member] | Debt Mark-to-Market [Member] | ||||||||
Purchase Price Allocation [Abstract] | ||||||||
Total assets acquired | $ 717,000 | |||||||
Total assets acquired, net | $ 651,818 |
INVESTMENTS IN REAL ESTATE, Com
INVESTMENTS IN REAL ESTATE, Components of Income From Real Estate Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | ||
INVESTMENTS IN REAL ESTATE [Abstract] | |||||
Lease Income - Operating leases | $ 3,982,146 | $ 2,137,406 | $ 9,979,740 | $ 6,527,631 | |
Variable lease income | [1] | 487,723 | 381,237 | 1,232,884 | 1,283,808 |
Income from real estate operations | $ 4,469,869 | $ 2,518,643 | $ 11,212,624 | $ 7,811,439 | |
[1]Primarily includes tenant reimbursements for utilities and common area maintenance. |
INVESTMENTS IN REAL ESTATE, Ope
INVESTMENTS IN REAL ESTATE, Operating Leases Future Minimum Lease Payments (Details) | Mar. 31, 2023 USD ($) |
Rental Income [Abstract] | |
2023 | $ 2,262,297 |
2024 | 7,397,044 |
2025 | 5,939,945 |
2026 | 4,577,398 |
2027 | 3,615,567 |
Thereafter | 12,352,580 |
Total | $ 36,144,831 |
INVESTMENTS IN REAL ESTATE, Acq
INVESTMENTS IN REAL ESTATE, Acquired Lease Intangibles (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Jun. 30, 2022 | |
Acquired Lease Intangibles [Abstract] | ||
Cost | $ 7,757,557 | $ 2,889,828 |
Accumulated amortization | (1,676,388) | (586,168) |
Total | $ 6,081,169 | $ 2,303,660 |
Weighted average amortization period (years) | 4 years 10 months 24 days | 5 years 2 months 12 days |
Above-Market Lease Asset [Member] | ||
Acquired Lease Intangibles [Abstract] | ||
Cost | $ 419,166 | $ 0 |
Accumulated amortization | (41,227) | 0 |
Total | $ 377,939 | 0 |
Weighted average amortization period (years) | 5 years 4 months 24 days | |
Below-Market Lease Liabilities [Member] | ||
Acquired Lease Intangibles [Abstract] | ||
Cost | $ 2,346,666 | 1,455,317 |
Accumulated amortization | (811,716) | (391,738) |
Total | $ 1,534,950 | $ 1,063,579 |
Weighted average amortization period (years) | 5 years 1 month 6 days | 4 years 10 months 24 days |
INVESTMENTS IN REAL ESTATE, Amo
INVESTMENTS IN REAL ESTATE, Amortization of Lease Intangibles (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Amortization of Lease Intangibles [Abstract] | ||||
Amortization | $ 588,069 | $ 432,540 | $ 1,090,220 | $ 1,223,665 |
Above-Market Leases Intangibles [Member] | ||||
Amortization of Lease Intangibles [Abstract] | ||||
Amortization | 26,687 | 31,976 | 41,227 | 95,928 |
Below-Market Lease Liabilities [Member] | ||||
Amortization of Lease Intangibles [Abstract] | ||||
Amortization | $ (222,424) | $ (69,099) | $ (419,978) | $ (217,809) |
INVESTMENTS IN REAL ESTATE, Pro
INVESTMENTS IN REAL ESTATE, Projected Amortization Expense and Adjustments (Details) | Jun. 30, 2022 USD ($) |
In-Place Leases, to be Included in Amortization [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2023 (remainder) | $ 446,347 |
2024 | 1,603,609 |
2025 | 1,285,141 |
2026 | 897,073 |
2027 | 520,119 |
Thereafter | 1,328,880 |
Above-Market Leases Intangibles [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2023 (remainder) | 29,426 |
2024 | 115,725 |
2025 | 70,864 |
2026 | 41,731 |
2027 | 30,177 |
Thereafter | 90,016 |
Below-Market Lease Liabilities [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2023 (remainder) | (124,859) |
2024 | (451,247) |
2025 | (286,084) |
2026 | (195,626) |
2027 | (158,666) |
Thereafter | (318,468) |
Total to be Included in Revenue from Tenants [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2023 (remainder) | (95,433) |
2024 | (335,522) |
2025 | (215,220) |
2026 | (153,895) |
2027 | (128,489) |
Thereafter | $ (228,452) |
INVESTMENTS, Investments at Fai
INVESTMENTS, Investments at Fair Value (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | $ 24,718,993 | $ 57,593,244 |
Non Traded Companies [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 8,438,289 | 11,517,226 |
GP Interests (Equity method investment with fair value option election) [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 9,322,000 | 18,333,000 |
LP Interest [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 168,960 | 330,000 |
LP Interests (Equity method investment with fair value option election) [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 6,789,744 | 27,363,840 |
Investment Trust [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | $ 0 | $ 49,178 |
INVESTMENTS, Fair Value Measure
INVESTMENTS, Fair Value Measurements (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Asset Type [Abstract] | ||
Investments at Fair Value | $ 24,718,993 | $ 57,593,244 |
Level I [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Level II [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Level III [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 24,718,993 | 57,593,244 |
Non Traded Companies [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 8,438,289 | 11,517,226 |
Non Traded Companies [Member] | Level I [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Non Traded Companies [Member] | Level II [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Non Traded Companies [Member] | Level III [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 8,438,289 | 11,517,226 |
GP Interests [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 9,322,000 | 18,333,000 |
GP Interests [Member] | Level I [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
GP Interests [Member] | Level II [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
GP Interests [Member] | Level III [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 9,322,000 | 18,333,000 |
LP Interests [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 6,958,704 | 27,693,840 |
LP Interests [Member] | Level I [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
LP Interests [Member] | Level II [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
LP Interests [Member] | Level III [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 6,958,704 | 27,693,840 |
Investment Trust [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | $ 0 | 49,178 |
Investment Trust [Member] | Level I [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | |
Investment Trust [Member] | Level II [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | |
Investment Trust [Member] | Level III [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | $ 49,178 |
INVESTMENTS, Reconciliation for
INVESTMENTS, Reconciliation for Investments Measurements at Fair Value on a Recurring Basis (Details) - Level III [Member] - USD ($) | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance | $ 57,593,244 | $ 70,340,043 |
Purchases of investments | 303,884 | 3,343,802 |
Transfers to Level I | (30,753) | (230,160) |
Transfer to Investments in Real Estate | (8,488,467) | |
Proceeds from sales, net | (3,163,025) | (29,230,856) |
Return of capital distributions | (12,298,337) | (11,807,238) |
Written off contingent consideration | (57,875) | |
Net realized gains | 821,375 | 8,765,565 |
Net unrealized gains | (9,961,053) | 6,170,851 |
Balance | 24,718,993 | 47,352,007 |
Unrealized gains, net included in earnings | $ 9,577,691 | $ 10,108,363 |
INVESTMENTS, Significant Unobse
INVESTMENTS, Significant Unobservable Inputs Used in Level III Fair Value Measurement (Details) - Level III [Member] - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 24,718,993 | $ 57,593,244 |
Non Traded Companies [Member] | Estimated Liquidation Value [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 955,737 | $ 1,011,081 |
Non Traded Companies [Member] | Estimated Liquidation Value [Member] | Sponsor Provided Value Liquidity Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 20% | |
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 | 25% | |
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 | 75% | |
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 | 25% | |
Non Traded Companies [Member] | Market Activity [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 7,482,552 | $ 10,506,145 |
GP Interests [Member] | Direct Capitalization Method [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 9,322,000 | |
GP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Minimum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6.30% | |
GP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Maximum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6.50% | |
GP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Weighted Average [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6.40% | |
GP Interests [Member] | Direct Capitalization Method [Member] | Discount Rate [Member] | Minimum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6.80% | |
GP Interests [Member] | Direct Capitalization Method [Member] | Discount Rate [Member] | Maximum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 7% | |
GP Interests [Member] | Direct Capitalization Method [Member] | Discount Rate [Member] | Weighted Average [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 7% | |
GP Interests [Member] | Market Activity [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | 18,333,000 | |
LP Interests [Member] | Direct Capitalization Method [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 21,550,730 | |
LP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Minimum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 4% | |
LP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Maximum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 5% | |
LP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Weighted Average [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 4.20% | |
LP Interests [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 15% | |
LP Interests [Member] | Discounted Cash Flow [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 6,393,260 | $ 5,806,290 |
LP Interests [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Minimum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6.30% | 6.30% |
LP Interests [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Maximum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 9% | 9% |
LP Interests [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Weighted Average [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6.60% | 8.60% |
LP Interests [Member] | Estimated Liquidation Value [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 396,484 | $ 6,820 |
LP Interests [Member] | Estimated Liquidation Value [Member] | Sponsor Provided Value Liquidity Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 12% | |
LP Interests [Member] | Estimated Liquidation Value [Member] | Sponsor Provided Value [Member] | Minimum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 0% | |
LP Interests [Member] | Estimated Liquidation Value [Member] | Sponsor Provided Value [Member] | Maximum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 12% | |
LP Interests [Member] | Estimated Liquidation Value [Member] | Sponsor Provided Value [Member] | Weighted Average [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 0.20% | |
LP Interests [Member] | Market Activity [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 168,960 | |
LP Interests [Member] | Market Activity [Member] | Secondary Market Industry Publication Liquidity Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 330,000 | |
Investment Trust [Member] | Direct Capitalization Method [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 49,178 | |
Investment Trust [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 5% | |
Investment Trust [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 15% |
INVESTMENTS, Aggregated Summari
INVESTMENTS, Aggregated Summarized Financial Information of Investees (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Aggregated Summarized Financial Information of Investees [Abstract] | |||||
Total Assets | $ 227,326,951 | $ 227,326,951 | $ 182,564,961 | ||
Total Liabilities | 126,135,230 | 126,135,230 | 78,342,744 | ||
Total Equities | 89,188,721 | 89,188,721 | $ 97,854,313 | ||
Total Expenses | 7,495,853 | $ 4,388,277 | 19,534,033 | $ 12,829,103 | |
Dimensions 28, LLP [Member] | |||||
Aggregated Summarized Financial Information of Investees [Abstract] | |||||
Total Assets | 1,147,171 | 1,147,171 | |||
Total Liabilities | 10,125 | 10,125 | |||
Total Equities | 1,137,046 | 1,137,046 | |||
Total Revenues | 31,719,093 | ||||
Total Expenses | 5,212,716 | ||||
Total Net Income | 26,506,377 | ||||
Fair Value Option [Member] | |||||
Aggregated Summarized Financial Information of Investees [Abstract] | |||||
Total Assets | 94,267,563 | 94,267,563 | |||
Total Liabilities | 70,626,037 | 70,626,037 | |||
Total Equities | $ 23,641,526 | 23,641,526 | |||
Total Revenues | 42,450,387 | ||||
Total Expenses | 14,114,665 | ||||
Total Net Income | $ 28,335,722 |
ACQUISITIONS AND HELD FOR SALE,
ACQUISITIONS AND HELD FOR SALE, Purchase Price Allocation of General Partnership Interests Acquired (Details) | 1 Months Ended | 9 Months Ended | ||||||
Feb. 01, 2023 USD ($) | Jan. 03, 2023 USD ($) | Oct. 01, 2022 USD ($) | Jul. 29, 2022 USD ($) | May 06, 2022 USD ($) Company | Mar. 31, 2021 Company | Mar. 31, 2023 | Sep. 30, 2022 | |
Acquisition of General Partnership Interests [Abstract] | ||||||||
Number of operating companies | Company | 2 | |||||||
Wiseman Company LLC [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Percentage of economic interest acquired | 100% | |||||||
Number of operating companies | Company | 8 | |||||||
Total purchase price | $ 18,333,000 | |||||||
1300 Main, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Percentage of economic interest acquired | 100% | |||||||
Management Companies | 1300 Main, LLC | |||||||
Total purchase price | $ 6,480,582 | 1,688,000 | ||||||
First & Main, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Percentage of economic interest acquired | 100% | |||||||
Management Companies | First & Main, LLC | |||||||
Total purchase price | $ 3,376,322 | 2,237,000 | ||||||
Green Valley Medical Center, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Management Companies | Green Valley Medical Center, LLC | |||||||
Total purchase price | 3,010,000 | |||||||
Main Street West, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Percentage of economic interest acquired | 100% | |||||||
Management Companies | Main Street West, LLC | |||||||
Total purchase price | $ 8,277,016 | 4,708,000 | ||||||
Martin Plaza Associates, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Management Companies | Martin Plaza, LLC | |||||||
Total purchase price | 725,000 | |||||||
One Harbor Center, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Management Companies | One Harbor Center, LLC | |||||||
Total purchase price | 4,162,000 | |||||||
Westside Professional Center I, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Management Companies | Westside Professional Center, LLC | |||||||
Total purchase price | 1,803,000 | |||||||
Woodland Corporate Center Two, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Percentage of economic interest acquired | 100% | |||||||
Management Companies | Woodland Corporate Center, LLC | |||||||
Total purchase price | $ 5,636,966 | $ 0 |
ACQUISITIONS AND HELD FOR SAL_2
ACQUISITIONS AND HELD FOR SALE, Cash, Preferred Units in Operating Partnership and Contingent Liability (Details) - USD ($) | 9 Months Ended | |||||||
Feb. 01, 2023 | Jan. 03, 2023 | Oct. 01, 2022 | Jul. 29, 2022 | May 06, 2022 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | |
Acquisition of General Partnership Interests [Abstract] | ||||||||
Contingent liability | $ 1,503,000 | $ 2,715,000 | ||||||
Wiseman Company LLC [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Cash Payments | $ 10,968,000 | |||||||
Contingent liability | 2,715,000 | |||||||
Total purchase price | $ 18,333,000 | |||||||
Percentage of economic interest acquired | 100% | |||||||
Purchase price of interests acquired | $ 18,333,000 | |||||||
Wiseman Company LLC [Member] | Preferred Stock [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Number of preferred units issued (in shares) | 206,666.67 | |||||||
Amount of preferred units issued | $ 4,650,000 | |||||||
Preferred units, liquidation preference | $ 25 | |||||||
Lock-up period term | 4 years | |||||||
Share price (in dollars per share) | $ 22.5 | |||||||
Purchase price paid through issuance of shares | $ 4,650,000 | |||||||
1300 Main, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Cash Payments | $ 6,480,582 | 1,688,000 | ||||||
Contingent liability | 0 | |||||||
Total purchase price | 6,480,582 | 1,688,000 | ||||||
Percentage of economic interest acquired | 100% | |||||||
Purchase price of interests acquired | $ 6,480,582 | $ 1,688,000 | ||||||
1300 Main, LP [Member] | Preferred Stock [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Number of preferred units issued (in shares) | 0 | |||||||
Amount of preferred units issued | $ 0 | |||||||
Purchase price paid through issuance of shares | 0 | |||||||
First & Main, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Amount of preferred units issued | $ 2,711,378 | |||||||
Cash Payments | 0 | |||||||
Contingent liability | 0 | |||||||
Total purchase price | $ 3,376,322 | 2,237,000 | ||||||
Percentage of economic interest acquired | 100% | |||||||
Purchase price of interests acquired | $ 3,376,322 | $ 2,237,000 | ||||||
Purchase price paid through issuance of shares | $ 2,711,378 | |||||||
First & Main, LP [Member] | Preferred Stock [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Number of preferred units issued (in shares) | 99,422.22 | |||||||
Amount of preferred units issued | $ 2,237,000 | |||||||
Shares issued (in shares) | 120,505.66 | |||||||
Purchase price paid through issuance of shares | 2,237,000 | |||||||
Green Valley Medical Center, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Cash Payments | 2,410,000 | |||||||
Contingent liability | 600,000 | |||||||
Total purchase price | 3,010,000 | |||||||
Purchase price of interests acquired | $ 3,010,000 | |||||||
Green Valley Medical Center, LP [Member] | Preferred Stock [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Number of preferred units issued (in shares) | 0 | |||||||
Amount of preferred units issued | $ 0 | |||||||
Purchase price paid through issuance of shares | 0 | |||||||
Main Street West, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Cash Payments | 3,850,000 | |||||||
Contingent liability | 858,000 | |||||||
Total purchase price | $ 8,277,016 | 4,708,000 | ||||||
Percentage of economic interest acquired | 100% | |||||||
Purchase price of interests acquired | $ 8,277,016 | $ 4,708,000 | ||||||
Main Street West, LP [Member] | Preferred Stock [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Number of preferred units issued (in shares) | 0 | |||||||
Amount of preferred units issued | $ 0 | |||||||
Purchase price paid through issuance of shares | 0 | |||||||
Martin Plaza Associates, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Cash Payments | 0 | |||||||
Contingent liability | 118,000 | |||||||
Total purchase price | 725,000 | |||||||
Purchase price of interests acquired | $ 725,000 | |||||||
Martin Plaza Associates, LP [Member] | Preferred Stock [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Number of preferred units issued (in shares) | 26,977.78 | |||||||
Amount of preferred units issued | $ 607,000 | |||||||
Purchase price paid through issuance of shares | 607,000 | |||||||
One Harbor Center, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Cash Payments | 1,571,000 | |||||||
Contingent liability | 785,000 | |||||||
Total purchase price | 4,162,000 | |||||||
Purchase price of interests acquired | $ 4,162,000 | |||||||
One Harbor Center, LP [Member] | Preferred Stock [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Number of preferred units issued (in shares) | 80,266.67 | |||||||
Amount of preferred units issued | $ 1,806,000 | |||||||
Purchase price paid through issuance of shares | 1,806,000 | |||||||
Westside Professional Center I, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Cash Payments | 1,449,000 | |||||||
Contingent liability | 354,000 | |||||||
Total purchase price | 1,803,000 | |||||||
Purchase price of interests acquired | $ 1,803,000 | |||||||
Westside Professional Center I, LP [Member] | Preferred Stock [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Number of preferred units issued (in shares) | 0 | |||||||
Amount of preferred units issued | $ 0 | |||||||
Purchase price paid through issuance of shares | 0 | |||||||
Woodland Corporate Center Two, LP [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Amount of preferred units issued | $ 3,242,557 | |||||||
Cash Payments | 0 | |||||||
Contingent liability | 0 | |||||||
Total purchase price | $ 5,636,966 | 0 | ||||||
Percentage of economic interest acquired | 100% | |||||||
Shares issued (in shares) | 144,113.63 | |||||||
Purchase price of interests acquired | $ 5,636,966 | $ 0 | ||||||
Purchase price paid through issuance of shares | $ 3,242,557 | |||||||
Woodland Corporate Center Two, LP [Member] | Preferred Stock [Member] | ||||||||
Acquisition of General Partnership Interests [Abstract] | ||||||||
Number of preferred units issued (in shares) | 0 | |||||||
Amount of preferred units issued | $ 0 | |||||||
Purchase price paid through issuance of shares | $ 0 |
ACQUISITIONS AND HELD FOR SAL_3
ACQUISITIONS AND HELD FOR SALE, Contingent Consideration and Debt Guaranty (Details) - USD ($) | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | May 06, 2022 | |
Contingent Consideration [Abstract] | ||||
Percentage of reduced purchase price for general partnership interest | 20% | |||
Percentage of holdback reduced by stabilization costs | 20% | |||
Percentage of holdback considered as contingent liability | 20% | |||
Contingent liability | $ 1,503,000 | $ 2,715,000 | ||
Payment on contingent liability | (1,154,125) | $ 0 | ||
Reduction in contingent liability | 57,875 | $ 0 | ||
Debt Guaranty [Abstract] | ||||
Contingent liability related to guaranty | $ 0 |
ACQUISITIONS AND HELD FOR SAL_4
ACQUISITIONS AND HELD FOR SALE, Assets and Liabilities Held for Sale (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Impairment on Assets Held for Sale [Abstract] | |||||
Impairment loss on assets held for sale | $ 6,207,743 | $ 0 | $ 8,121,089 | $ 0 | |
Addison Corporate Center [Member] | Held-for-Sale [Member] | |||||
Impairment on Assets Held for Sale [Abstract] | |||||
Impairment loss on assets held for sale | 8,121,089 | $ 9,126,461 | |||
Real Estate Assets [Abstract] | |||||
Land | 6,456,615 | 6,456,615 | 6,456,615 | ||
Building, fixtures and improvements | 19,657,181 | 19,657,181 | 19,108,041 | ||
Intangible lease assets | 5,225,719 | 5,225,719 | 5,154,568 | ||
Less: accumulated depreciation and amortization | (5,112,309) | (5,112,309) | (5,112,309) | ||
Total real estate assets, net | 26,227,206 | 26,227,206 | 25,606,915 | ||
Cash | 534,757 | 534,757 | 505,186 | ||
Investments income, rents and other receivables | 505,835 | 505,835 | 490,239 | ||
Due from related entities | 0 | 0 | 401 | ||
Prepaid expenses and other assets | 316,011 | 316,011 | 14,301 | ||
Allowance for impairment of assets held for sale | (17,247,550) | (17,247,550) | (9,126,461) | ||
Total assets | 10,336,259 | 10,336,259 | 17,490,581 | ||
Liabilities [Abstract] | |||||
Deferred rent and other liabilities | 445,243 | 445,243 | 410,908 | ||
Accounts payable and accrued liabilities | 1,204,029 | 1,204,029 | 334,081 | ||
Total liabilities | $ 1,649,272 | $ 1,649,272 | $ 744,989 |
LEASES, Lessee Arrangements (De
LEASES, Lessee Arrangements (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Right-of-Use Assets: [Abstract] | ||
Finance leases | $ 651,121 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Real Estate Investment Property, Net | |
Lease Liabilities: [Abstract] | ||
Finance leases | $ 642,483 | $ 0 |
Minimum [Member] | ||
Lessee Arrangements [Abstract] | ||
Finance lease, remaining lease term | 7 years 6 months 29 days | |
Maximum [Member] | ||
Lessee Arrangements [Abstract] | ||
Finance lease, remaining lease term | 8 years |
LEASES, Finance Lease, Right-of
LEASES, Finance Lease, Right-of-Use Assets (Details) | Mar. 31, 2023 USD ($) |
Finance Lease, Right-of-Use Assets [Abstract] | |
Building, fixtures and improvements | $ 658,695 |
Accumulated depreciation | (7,574) |
Finance lease, right-of-use assets | $ 651,121 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Real Estate Investment Property, Net |
LEASES, Lease Expense (Details)
LEASES, Lease Expense (Details) | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Finance Lease Cost [Abstract] | |
Right-of-use asset amortization | $ 7,574 |
Interest expense | 11,238 |
Total lease cost | $ 18,812 |
LEASES, Lease Obligations (Deta
LEASES, Lease Obligations (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Future Undiscounted Lease Payments for Finance Leases [Abstract] | ||
2023 (remainder) | $ 21,271 | |
2024 | 86,361 | |
2025 | 89,813 | |
2026 | 93,408 | |
2027 | 97,079 | |
Thereafter | 387,042 | |
Total undiscounted lease payments | 774,974 | |
Less: Imputed interest | (132,491) | |
Net lease liabilities | $ 642,483 | $ 0 |
LEASES, Supplemental Lease Info
LEASES, Supplemental Lease Information (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Supplemental Lease Information [Abstract] | ||
Finance lease weighted average remaining lease term (years) | 7 years 9 months 10 days | |
Finance lease weighted average discount rate | 5% | |
Cash Paid for Amounts Included in Measurement of Lease Liabilities [Abstract] | ||
Financing cash flows from finance leases | $ 16,213 | $ 0 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 658,695 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - Variable Interest Entity, Primary Beneficiary [Member] | Mar. 31, 2023 USD ($) Entity | Jun. 30, 2022 USD ($) Entity |
Nonconsolidated Variable Interest Entities [Abstract] | ||
Number of unconsolidated VIEs | Entity | 6 | 7 |
Total Nonconsolidated VIEs [Abstract] | ||
Fair value of investments in VIEs | $ 6,958,704 | $ 27,693,840 |
Carrying value of variable interests - assets | 8,557,139 | 19,304,856 |
Maximum Exposure to Loss [Abstract] | ||
Limited Partnership Interest | $ 8,557,139 | $ 19,304,856 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2023 USD ($) Agreement | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Oct. 14, 2022 USD ($) | Oct. 13, 2022 USD ($) | May 06, 2022 PropertyLimitedPartnership | |||
Transactions with Related Party [Abstract] | ||||||||||||||
Number of advisory agreements | Agreement | 2 | |||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||
Total gross invested capital | $ 160,153,751 | $ 152,470,792 | $ 148,639,649 | $ 135,848,952 | $ 134,242,127 | $ 133,927,634 | ||||||||
Incentive management fee | 0 | 0 | $ 0 | $ 0 | ||||||||||
Number of property limited partnerships | PropertyLimitedPartnership | 8 | |||||||||||||
Incurred offering costs | 1,009,714 | 1,009,714 | $ 600,130 | |||||||||||
Related Party Expenses [Abstract] | ||||||||||||||
Asset management fees- the Real Estate Adviser | 767,299 | 680,678 | 2,225,085 | 2,034,852 | ||||||||||
Asset acquisition fees- the Real Estate Adviser | 1,878,356 | [1] | 0 | |||||||||||
Administrative cost reimbursements - Mackenzie | 181,500 | 152,400 | 544,500 | 457,200 | ||||||||||
Transfer agent cost reimbursements - Mackenzie | 23,000 | 26,600 | 69,000 | 79,801 | ||||||||||
Organization and Offering Cost - Mackenzie | [2] | 410,214 | 391,546 | |||||||||||
Other expenses - MacKenzie and Subsidiary's GP's | [3] | 0 | $ 0 | |||||||||||
Unpaid as of [Abstract] | ||||||||||||||
Asset management fees- the Real Estate Adviser | 0 | 0 | 0 | |||||||||||
Asset acquisition fees- the Real Estate Adviser | [1] | 0 | 0 | 0 | ||||||||||
Administrative cost reimbursements - Mackenzie | 0 | 0 | 0 | |||||||||||
Transfer agent cost reimbursement - Mackenzie | 0 | 0 | 0 | |||||||||||
Organization and Offering Cost - Mackenzie | [2] | 186,273 | 186,273 | 141,397 | ||||||||||
Other Expenses - Mackenzie | [3] | 7,150 | 7,150 | 72,697 | ||||||||||
Due to related entities | $ 193,423 | 193,423 | 214,094 | |||||||||||
Mackenzie [Member] | ||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||
Syndication cost paid in connection with preferred stock offering | $ 911,186 | 501,917 | ||||||||||||
Advisory Agreements [Member] | ||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||
Percentage of acquisition fee | 2.50% | |||||||||||||
Percentage of incentive management fee | 15% | |||||||||||||
Cumulative distribution percentage to effect incentive management fee | 6% | |||||||||||||
3.0% Annual Asset Management Fee [Member] | ||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||
Percentage of asset management fee | 3% | |||||||||||||
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 | ||||||||
2.0% Annual Asset Management Fee [Member] | ||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||
Percentage of asset management fee | 2% | |||||||||||||
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 | ||||||||
1.5% Annual Asset Management Fee [Member] | ||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||
Percentage of asset management fee | 1.50% | |||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||
Total gross invested capital | $ 60,153,751 | 52,470,792 | $ 48,639,649 | $ 35,848,952 | $ 34,242,127 | $ 33,927,634 | ||||||||
1.5% Annual Asset Management Fee [Member] | Minimum [Member] | ||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||
Total gross invested capital | $ 100,000,000 | |||||||||||||
Investment Adviser [Member] | ||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||
Percentage broker fee not incurred | 10% | |||||||||||||
Investment Adviser [Member] | Minimum [Member] | ||||||||||||||
Gross Invested Capital [Abstract] | ||||||||||||||
Cumulative deferred offering costs incurred | $ 825,000 | $ 550,000 | ||||||||||||
Unpaid as of [Abstract] | ||||||||||||||
Organization and Offering Cost - Mackenzie | $ 21,841 | |||||||||||||
Investment Adviser [Member] | Amended and Restated Investment Advisory Agreement [Member] | ||||||||||||||
Transactions with Related Party [Abstract] | ||||||||||||||
Annual fee | $ 100 | |||||||||||||
Coastal Realty Business Trust, REEP, Inc. [Member] | ||||||||||||||
Affiliated Investments [Abstract] | ||||||||||||||
Proceeds from sale of affiliated investment | 81,627 | |||||||||||||
Realized gain | $ 47,637 | |||||||||||||
[1]Asset acquisition fees paid to the Real Estate Adviser were capitalized as a part of the real estate basis in accordance with our policy. The acquisition fee paid during the nine months ended March 31, 2023 was for the acquisition of First & Main in July 2022, 1300 Main in October 2022,Woodland Corporate Center Two in January 2023 and Main Street West in February 2023.[2]Offering costs paid by MacKenzie - discussed in this Note under organization and offering costs reimbursements.[3]Expenses paid by MacKenzie and General Partner of a subsidiary on behalf of us and subsidiary. |
MARGIN LOANS (Details)
MARGIN LOANS (Details) - Margin Credit Line [Member] - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Line of Credit Facility [Abstract] | ||
Credit facility current borrowing capacity | $ 0 | $ 0 |
Credit facility remaining borrowing capacity | 0 | 0 |
Credit facility amount outstanding | $ 0 | $ 0 |
MORTGAGE NOTES PAYABLE AND DE_3
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Feb. 01, 2023 USD ($) | Oct. 01, 2022 USD ($) | Oct. 04, 2021 USD ($) | May 06, 2021 USD ($) | Apr. 07, 2021 USD ($) | Feb. 26, 2021 USD ($) | Jan. 13, 2021 USD ($) | Oct. 22, 2019 USD ($) | Oct. 02, 2019 USD ($) | Apr. 12, 2019 USD ($) | Apr. 30, 2023 USD ($) | Aug. 31, 2020 USD ($) | Jun. 30, 2020 USD ($) | Mar. 31, 2023 USD ($) Time | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jan. 04, 2021 USD ($) | Jun. 08, 2020 USD ($) | Dec. 31, 2018 USD ($) | |
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Proceeds from mortgage loan | $ 3,034,349 | $ 16,129,689 | |||||||||||||||||
Principal [Abstract] | |||||||||||||||||||
Total | 21,941,673 | $ 19,604,382 | |||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Sale price | $ 10,500,000 | ||||||||||||||||||
1300 Main Office Building [Member] | |||||||||||||||||||
Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||
Acquisition cost | $ 16,712,975 | ||||||||||||||||||
1300 Main Office Building [Member] | Debt Mark-to-Market [Member] | |||||||||||||||||||
Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||
Acquisition cost | $ 338,000 | ||||||||||||||||||
Net acquisition cost | 231,263 | ||||||||||||||||||
Main Street West Office Building [Member] | |||||||||||||||||||
Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||
Acquisition cost | $ 28,488,681 | ||||||||||||||||||
Net acquisition cost | 28,266,616 | ||||||||||||||||||
Main Street West Office Building [Member] | Debt Mark-to-Market [Member] | |||||||||||||||||||
Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||
Acquisition cost | $ 717,000 | ||||||||||||||||||
Net acquisition cost | $ 651,818 | ||||||||||||||||||
1300 Main, LP [Member] | 1300 Main Mortgage Payable 4.55% Interest Rate [Member] | |||||||||||||||||||
Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||
Number of monthly periodic payments | 60 months | ||||||||||||||||||
Monthly payments | $ 51,610 | ||||||||||||||||||
1300 Main, LP [Member] | Prime Rate Plus 1% Margin 1300 Main Mortgage Payables [Member] | |||||||||||||||||||
Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||
Number of monthly periodic payments | 59 months | ||||||||||||||||||
Monthly payments | $ 60,674 | ||||||||||||||||||
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 | ||||||||||||||||||
Modified Agreement [Member] | Fed Funds Rate [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, interest rate | 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 | 3% | ||||||||||||||||||
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, maturity date | Apr. 01, 2031 | ||||||||||||||||||
Amortization period for monthly payments of principal and interests | 360 months | ||||||||||||||||||
Principal [Abstract] | |||||||||||||||||||
Total | $ 6,737,500 | ||||||||||||||||||
First Republic Bank [Member] | Madison-PVT Partners LLC [Member] | Statistical Release H.15 [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, interest rate | 2.75% | ||||||||||||||||||
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 | 3% | ||||||||||||||||||
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, maturity date | Apr. 01, 2031 | ||||||||||||||||||
Principal [Abstract] | |||||||||||||||||||
Total | 8,387,500 | ||||||||||||||||||
First Republic Bank [Member] | PVT-Madison Partners LLC [Member] | Statistical Release H.15 [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, interest rate | 2.75% | ||||||||||||||||||
Ladder Capital Finance [Member] | PT Hillview [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, face value | $ 17,500,000 | ||||||||||||||||||
Fixed interest rate | 5.75% | ||||||||||||||||||
Debt, maturity date | Oct. 06, 2023 | ||||||||||||||||||
Number of time the loans can be extended | Time | 2 | ||||||||||||||||||
Loans extension period | 12 months | ||||||||||||||||||
Amortization period for monthly payments of principal and interests | 360 days | ||||||||||||||||||
Principal [Abstract] | |||||||||||||||||||
Total | $ 17,500,000 | 16,804,689 | |||||||||||||||||
Ladder Capital Finance [Member] | PT Hillview [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, interest rate | 5.50% | ||||||||||||||||||
Pacific Premier Bank [Member] | MacKenzie-BAA IG Shoreline, LLC [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, face value | $ 17,650,000 | ||||||||||||||||||
Fixed interest rate | 3.65% | ||||||||||||||||||
Debt, maturity date | Jun. 01, 2032 | ||||||||||||||||||
Amortization period for monthly payments of principal and interests | 360 months | ||||||||||||||||||
Number of months for annual interest | 60 months | ||||||||||||||||||
Principal [Abstract] | |||||||||||||||||||
Total | $ 17,650,000 | $ 17,650,000 | |||||||||||||||||
Pacific Premier Bank [Member] | MacKenzie-BAA IG Shoreline, LLC [Member] | Secured Overnight Financing Rate [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, interest rate | 3% | ||||||||||||||||||
Debt, term period | 6 months | ||||||||||||||||||
Exchange Bank [Member] | First & Main, LP [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, face value | $ 12,000,000 | ||||||||||||||||||
Fixed interest rate | 3.75% | ||||||||||||||||||
Debt, maturity date | Feb. 01, 2026 | ||||||||||||||||||
Amortization period for monthly payments of principal and interests | 25 years | ||||||||||||||||||
Principal [Abstract] | |||||||||||||||||||
2023 (remainder) | $ 79,373 | ||||||||||||||||||
2024 | 324,747 | ||||||||||||||||||
2025 | 337,136 | ||||||||||||||||||
2026 | 10,626,030 | ||||||||||||||||||
Total | 11,367,286 | ||||||||||||||||||
Interest [Abstract] | |||||||||||||||||||
2023 (remainder) | 106,321 | ||||||||||||||||||
2024 | 417,753 | ||||||||||||||||||
2025 | 405,363 | ||||||||||||||||||
2026 | 230,553 | ||||||||||||||||||
Total | $ 1,159,990 | ||||||||||||||||||
Wiseman Family Trust [Member] | First & Main, LP [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Proceeds from mortgage loan | $ 220,000 | ||||||||||||||||||
Notes payable, constant maturity period as published by Federal Reserve System | 10 years | ||||||||||||||||||
Debt, interest rate | 5% | ||||||||||||||||||
Principal [Abstract] | |||||||||||||||||||
Total | $ 187,010 | ||||||||||||||||||
Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||
Monthly payments | $ 1,486 | ||||||||||||||||||
Suncrest Bank [Member] | 1300 Main, LP [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, face value | $ 9,160,000 | ||||||||||||||||||
Fixed interest rate | 4.55% | ||||||||||||||||||
Debt, interest rate | 1% | ||||||||||||||||||
Debt, maturity date | Apr. 25, 2029 | ||||||||||||||||||
Number of months for annual interest | 60 months | ||||||||||||||||||
Principal [Abstract] | |||||||||||||||||||
2023 (remainder) | 56,863 | ||||||||||||||||||
2024 | 254,196 | ||||||||||||||||||
2025 | 360,159 | ||||||||||||||||||
2026 | 377,129 | ||||||||||||||||||
2027 | 394,900 | ||||||||||||||||||
Thereafter | 7,006,613 | ||||||||||||||||||
Total | 8,449,860 | ||||||||||||||||||
Interest [Abstract] | |||||||||||||||||||
2023 (remainder) | 98,033 | ||||||||||||||||||
2024 | 383,254 | ||||||||||||||||||
2025 | 367,933 | ||||||||||||||||||
2026 | 350,963 | ||||||||||||||||||
2027 | 333,192 | ||||||||||||||||||
Thereafter | 562,666 | ||||||||||||||||||
Total | 2,096,041 | ||||||||||||||||||
Western Alliance Bank [Member] | Woodland Corporate Center Two, LP [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, face value | $ 7,500,000 | ||||||||||||||||||
Fixed interest rate | 4.15% | ||||||||||||||||||
Amortization period for monthly payments of principal and interests | 5 years | ||||||||||||||||||
Principal [Abstract] | |||||||||||||||||||
2023 (remainder) | 48,661 | ||||||||||||||||||
2024 | 201,377 | ||||||||||||||||||
2025 | 6,626,544 | ||||||||||||||||||
Total | 6,876,582 | ||||||||||||||||||
Interest [Abstract] | |||||||||||||||||||
2023 (remainder) | 72,758 | ||||||||||||||||||
2024 | 284,221 | ||||||||||||||||||
2025 | 92,832 | ||||||||||||||||||
Total | 449,811 | ||||||||||||||||||
First Northern Bank of Dixon [Member] | Main Street West Mortgage [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, face value | $ 16,600,000 | ||||||||||||||||||
Fixed interest rate | 4% | ||||||||||||||||||
Amortization period for monthly payments of principal and interests | 5 years | ||||||||||||||||||
Principal [Abstract] | |||||||||||||||||||
2023 (remainder) | 108,654 | ||||||||||||||||||
2024 | 453,824 | ||||||||||||||||||
2025 | 472,314 | ||||||||||||||||||
2026 | 491,557 | ||||||||||||||||||
2027 | 511,584 | ||||||||||||||||||
Thereafter | 13,406,365 | ||||||||||||||||||
Total | 15,444,298 | ||||||||||||||||||
Interest [Abstract] | |||||||||||||||||||
2023 (remainder) | 156,101 | ||||||||||||||||||
2024 | 605,199 | ||||||||||||||||||
2025 | 586,709 | ||||||||||||||||||
2026 | 567,466 | ||||||||||||||||||
2027 | 547,440 | ||||||||||||||||||
Thereafter | 266,679 | ||||||||||||||||||
Total | $ 2,729,594 | ||||||||||||||||||
Small Business Administration Loan [Member] | First & Main, LP [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Proceeds from mortgage loan | $ 151,000 | ||||||||||||||||||
Notes payable, constant maturity period as published by Federal Reserve System | 30 years | ||||||||||||||||||
Debt, interest rate | 3.75% | ||||||||||||||||||
Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||
Monthly payments | $ 731 | ||||||||||||||||||
Small Business Administration Loan [Member] | 1300 Main, LP [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Proceeds from mortgage loan | $ 150,000 | ||||||||||||||||||
Debt, interest rate | 3.75% | ||||||||||||||||||
Debt, term period | 30 years | ||||||||||||||||||
Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||
Monthly payments | $ 731 | ||||||||||||||||||
Small Business Administration Loan [Member] | Main Street West Mortgage [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Proceeds from mortgage loan | $ 150,000 | ||||||||||||||||||
Debt, interest rate | 3.75% | ||||||||||||||||||
Debt, term period | 30 years | ||||||||||||||||||
Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||
Monthly payments | $ 731 | ||||||||||||||||||
Wells Fargo Bank [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, face value | $ 32,000,000 | ||||||||||||||||||
Debt, maturity date | Nov. 01, 2019 | ||||||||||||||||||
Wells Fargo Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, interest rate | 3.75% | ||||||||||||||||||
Junior Debt [Member] | First & Main, LP [Member] | |||||||||||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | |||||||||||||||||||
Debt, face value | $ 1,000,000 | ||||||||||||||||||
Fixed interest rate | 7% | ||||||||||||||||||
Debt, maturity date | Dec. 31, 2023 | ||||||||||||||||||
Interest [Abstract] | |||||||||||||||||||
Prepayment penalty | $ 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
EARNINGS PER SHARE [Abstract] | ||||
Net income (loss) attributable to common stockholders | $ (14,397,810) | $ 15,216,402 | ||
Basic weighted average common shares outstanding (in shares) | 13,283,622 | 13,377,201 | 13,282,666.75 | 13,359,538.6 |
Diluted weighted average common shares outstanding (in shares) | 13,282,666.75 | 13,359,538.6 | ||
Basic earnings per share (in dollars per share) | $ (0.79) | $ 0.43 | $ (1.08) | $ 1.14 |
Diluted earnings per share (in dollars per share) | $ (1.08) | $ 1.14 |
SHARE OFFERINGS AND FEES (Detai
SHARE OFFERINGS AND FEES (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Sale of Stock [Abstract] | ||||
Proceeds from issuance of preferred stock | $ 11,449,495 | $ 1,984,500 | ||
DRIP [Member] | ||||
Sale of Stock [Abstract] | ||||
Proceeds from shares issued | 1,208,909 | $ 839,610 | ||
Proceeds from issuance of preferred stock | 39,988 | |||
Offering Circular [Member] | ||||
Sale of Stock [Abstract] | ||||
Proceeds from issuance of preferred stock | $ 11,449,495 | |||
Common Stock [Member] | ||||
Sale of Stock [Abstract] | ||||
Shares issued (in shares) | 169.67 | 212.19 | ||
Price per share (in dollars per share) | $ 10.25 | $ 10.25 | $ 10.25 | |
Common Stock [Member] | DRIP [Member] | ||||
Sale of Stock [Abstract] | ||||
Shares issued (in shares) | 131,046.97 | 91,013.94 | ||
Preferred Stock [Member] | ||||
Sale of Stock [Abstract] | ||||
Shares issued (in shares) | 80,014.57 | |||
Proceeds from issuance of preferred stock | $ 1,984,500 | |||
Preferred shares offering cost | $ 1,363,238 | $ 672,460 | ||
Preferred Stock [Member] | DRIP [Member] | ||||
Sale of Stock [Abstract] | ||||
Shares issued (in shares) | 735.66 | |||
Preferred Stock [Member] | Offering Circular [Member] | ||||
Sale of Stock [Abstract] | ||||
Shares issued (in shares) | 468,425.06 |
SHARE REPURCHASE PLAN (Details)
SHARE REPURCHASE PLAN (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock Repurchase Plan [Abstract] | ||
Number of shares repurchased (in shares) | 143,762.3 | 131,285.05 |
Repurchase consideration | $ 1,237,009 | $ 1,204,678 |
September 1, 2022 through September 30, 2022 [Member] | ||
Stock Repurchase Plan [Abstract] | ||
Number of shares repurchased (in shares) | 40,817.06 | |
Average repurchase price per share (in dollars per share) | $ 9.47 | |
Repurchase consideration | $ 386,385 | |
December 1, 2022 through December 31, 2022 [Member] | ||
Stock Repurchase Plan [Abstract] | ||
Number of shares repurchased (in shares) | 44,048.79 | |
Average repurchase price per share (in dollars per share) | $ 9.44 | |
Repurchase consideration | $ 415,968 | |
March 1, 2023 through March 31, 2023 [Member] | ||
Stock Repurchase Plan [Abstract] | ||
Number of shares repurchased (in shares) | 58,896.45 | |
Average repurchase price per share (in dollars per share) | $ 7.38 | |
Repurchase consideration | $ 434,656 | |
December 22, 2021 [Member] | ||
Stock Repurchase Plan [Abstract] | ||
Number of shares repurchased (in shares) | 5,607.89 | |
Average repurchase price per share (in dollars per share) | $ 9.84 | |
Repurchase consideration | $ 55,188 | |
January 6, 2022 through March 31, 2022 [Member] | ||
Stock Repurchase Plan [Abstract] | ||
Number of shares repurchased (in shares) | 125,677.16 | |
Average repurchase price per share (in dollars per share) | $ 9.15 | |
Repurchase consideration | $ 1,149,490 |
STOCKHOLDER DIVIDENDS (Details)
STOCKHOLDER DIVIDENDS (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Feb. 10, 2023 | ||
Dividends Declared [Abstract] | ||||||
Dividends, Common stock | $ 4,367,666 | $ 3,993,935 | ||||
Common dividends | 4,170,569 | |||||
Dividends, Preferred stock | 453,413 | 18,947 | ||||
Preferred dividends | $ 281,760 | |||||
Total dividends paid | $ 2,800,534 | |||||
Percentage of cumulative cash dividends on each preferred share | 6% | |||||
Common Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.33 | $ 0.3 | ||||
Preferred Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | 1.125 | 0.5 | ||||
Preferred Stock Units [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.86 | $ 0.25 | ||||
Dividends, Preferred stock | $ 407,732 | $ 51,667 | ||||
Class A [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.33 | $ 0.3 | $ 0.06 | |||
Dividends, Common stock | $ 29,552 | $ 3,609 | $ 723 | |||
Dividend Declared Q1-2022 [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends declaration date | Sep. 30, 2022 | |||||
Dividends, Common stock | $ 1,390,290 | |||||
Dividends, Preferred stock | $ 87,884 | |||||
Dividend Declared Q1-2022 [Member] | Common Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.105 | |||||
Dividend Declared Q1-2022 [Member] | Preferred Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.375 | |||||
Dividend Declared Q2-2022 [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends declaration date | Dec. 31, 2022 | |||||
Dividends, Common stock | $ 1,456,391 | |||||
Dividends, Preferred stock | $ 155,909 | |||||
Dividend Declared Q2-2022 [Member] | Common Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.11 | |||||
Dividend Declared Q2-2022 [Member] | Preferred Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.375 | |||||
Dividend Declared Q3-2022 [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends declaration date | Mar. 31, 2023 | |||||
Dividends, Common stock | $ 1,520,985 | |||||
Dividends, Preferred stock | $ 209,620 | |||||
Dividends payable date | Apr. 30, 2023 | |||||
Dividend Declared Q3-2022 [Member] | Common Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.115 | |||||
Dividend Declared Q3-2022 [Member] | Preferred Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.375 | |||||
Dividend Declared Q1-2021 [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends declaration date | Sep. 30, 2021 | |||||
Dividends, Common stock | $ 1,731,482 | |||||
Dividends, Preferred stock | $ 0 | |||||
Dividend Declared Q1-2021 [Member] | Common Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | [1] | $ 0.13 | ||||
Dividend Declared Q1-2021 [Member] | Preferred Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0 | |||||
Dividend Declared Q2-2021 [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends declaration date | Dec. 31, 2021 | |||||
Dividends, Common stock | $ 1,068,612 | |||||
Dividends, Preferred stock | $ 440 | |||||
Dividend Declared Q2-2021 [Member] | Common Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.08 | |||||
Dividend Declared Q2-2021 [Member] | Preferred Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.125 | |||||
Dividend Declared Q3-2021 [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends declaration date | Mar. 31, 2022 | |||||
Dividends, Common stock | $ 1,193,841 | |||||
Dividends, Preferred stock | $ 18,507 | |||||
Dividend Declared Q3-2021 [Member] | Common Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.09 | |||||
Dividend Declared Q3-2021 [Member] | Preferred Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.375 | |||||
DRIP [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends, Common stock | $ 1,208,909 | $ 839,685 | ||||
Dividends, Preferred stock | $ 39,988 | |||||
Dividend Payable for April 2023 [Member] | Series A Preferred Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends declaration date | Feb. 10, 2023 | |||||
Dividends per share (in dollars per share) | $ 0.375 | |||||
Dividends payable per month (in dollars per share) | 0.125 | |||||
Dividends payable, holder of record date | Apr. 30, 2023 | |||||
Dividend Payable for May 2023 [Member] | Series A Preferred Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends declaration date | Feb. 10, 2023 | |||||
Dividends per share (in dollars per share) | 0.375 | |||||
Dividends payable per month (in dollars per share) | 0.125 | |||||
Dividends payable, holder of record date | May 31, 2023 | |||||
Dividend Payable for June 2023 [Member] | Series A Preferred Stock [Member] | ||||||
Dividends Declared [Abstract] | ||||||
Dividends declaration date | Feb. 10, 2023 | |||||
Dividends per share (in dollars per share) | 0.375 | |||||
Dividends payable per month (in dollars per share) | $ 0.125 | |||||
Dividends payable, holder of record date | Jun. 30, 2023 | |||||
[1]*0.06 per share dividend was declared for the quarter ended June 30, 2021. |