Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 11, 2021 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-40771 | |
Entity Registrant Name | GENERATION INCOME PROPERTIES, INC. | |
Entity Central Index Key | 0001651721 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 47-4427295 | |
Entity Address, Address Line One | 401 E. Jackson Street | |
Entity Address, Address Line Two | Suite 3300 | |
Entity Address, City or Town | Tampa | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33602 | |
City Area Code | 813 | |
Local Phone Number | 448-1234 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,160,200 | |
Common Stock Par Value $0.01 Per Share | ||
Document And Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock par value $0.01 per share | |
Trading Symbol | GIPR | |
Security Exchange Name | NASDAQ | |
Warrants To Purchase Common Stock | ||
Document And Entity Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase Common Stock | |
Trading Symbol | GIPRW | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Investment in real estate | ||
Property | $ 36,621,767 | $ 37,352,447 |
Tenant improvements | 482,701 | 482,701 |
Acquired lease intangible assets | 2,949,411 | 3,014,149 |
Less accumulated depreciation and amortization | (3,168,841) | (2,317,454) |
Total investments | 36,885,038 | 38,531,843 |
Investment in tenancy-in-common | 717,337 | |
Cash and cash equivalents | 14,194,639 | 937,564 |
Restricted cash | 34,500 | 184,800 |
Deferred rent asset | 145,428 | 126,655 |
Prepaid expenses | 220,652 | 134,165 |
Deferred financing costs | 614,088 | |
Accounts receivable | 105,108 | 75,794 |
Escrow deposit and other assets | 106,106 | 75,831 |
Total Assets | 52,408,808 | 40,680,740 |
Liabilities | ||
Accounts payable | 156,638 | 118,462 |
Accounts payable - related party | 100 | |
Accrued expenses | 278,581 | 406,125 |
Acquired lease intangible liability, net | 608,697 | 415,648 |
Insurance payable | 99,096 | 40,869 |
Deferred rent liability | 185,805 | 188,595 |
Note Payable - related party | 1,100,000 | |
Mortgage loans, net of unamortized discount of $633,647 and $689,190 at September 30, 2021 and December 31, 2020, respectively | 26,765,781 | 28,356,571 |
Total liabilities | 28,094,698 | 30,626,270 |
Redeemable Non-Controlling Interests | 9,605,028 | 8,684,431 |
Stockholders' Equity | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 2,272,700 shares issued and 2,160,200 outstanding at September 30, 2021 and 576,918 issued and outstanding at December 31, 2020 | 22,727 | 5,770 |
Treasury shares, at cost | (100) | |
Additional paid-in capital | 19,256,827 | 5,541,411 |
Accumulated deficit | (4,570,372) | (4,177,142) |
Total Generation Income Properties, Inc. stockholders' equity | 14,709,082 | 1,370,039 |
Total Liabilities and Stockholders' Equity | $ 52,408,808 | $ 40,680,740 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 2,272,700 | 576,918 |
Common stock, shares outstanding | 2,160,200 | 576,918 |
Mortgage Loans | ||
Mortgage loans, net of unamortized discount | $ 633,647 | $ 689,190 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | ||||
Total revenue | $ 1,033,494 | $ 871,825 | $ 2,958,572 | $ 2,630,067 |
Expenses | ||||
General, administrative and organizational costs | 268,632 | 267,608 | 808,623 | 689,660 |
Building expenses | 195,464 | 179,319 | 539,739 | 534,947 |
Depreciation and amortization | 388,141 | 363,898 | 1,164,838 | 1,083,917 |
Interest expense, net | 336,025 | 334,323 | 1,028,446 | 1,060,776 |
Compensation costs | 117,332 | 129,880 | 328,394 | 257,882 |
Total expenses | 1,305,594 | 1,275,028 | 3,870,040 | 3,627,182 |
Operating loss | (272,100) | (403,203) | (911,468) | (997,115) |
Income on investment in tenancy-in-common | 4,750 | 4,750 | ||
Gain on disposal of property | 923,178 | 923,178 | ||
Net income (loss) | 655,828 | (403,203) | 16,460 | (997,115) |
Less: Net income attributable to non-controlling interest | 199,716 | 152,023 | 409,690 | 334,718 |
Net Income (loss) attributable to Generation Income Properties, Inc. | $ 456,112 | $ (555,226) | $ (393,230) | $ (1,331,833) |
Total Weighted Average Shares of Common Stock Outstanding – Basic | 939,559 | 525,495 | 699,395 | 525,332 |
Total Weighted Average Shares of Common Stock Outstanding – Diluted | 939,559 | 525,495 | 699,395 | 525,332 |
Basic Income (Loss) Per Share Attributable to Common Stockholder | $ 0.49 | $ (1.06) | $ (0.56) | $ (2.54) |
Diluted Income (Loss) Per Share Attributable to Common Stockholder | $ 0.49 | $ (1.06) | $ (0.56) | $ (2.54) |
Rental Income | ||||
Revenue | ||||
Total revenue | $ 988,244 | $ 871,825 | $ 2,913,322 | $ 2,630,067 |
Other Income | ||||
Revenue | ||||
Total revenue | $ 45,250 | $ 45,250 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASHFLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 16,460 | $ (997,115) |
Adjustments to reconcile net income (loss) to cash provided by operating activities | ||
Depreciation | 833,291 | 776,070 |
Amortization of acquired lease intangible assets | 331,547 | 307,847 |
Amortization of debt issuance costs | 94,600 | 106,210 |
Amortization of below market leases | (115,921) | (82,123) |
Common stock issued in lieu of cash compensation | 33,000 | |
Restricted stock unit compensation | 153,636 | 74,338 |
Equity in earnings on investment in tenancy-in-common | (4,750) | |
Gain on sale of property | (923,178) | |
Changes in operating assets and liabilities | ||
Accounts receivable | (29,314) | (168) |
Other assets | (30,275) | (35,636) |
Deferred rent asset | (18,773) | (1,510) |
Prepaid expenses | (86,487) | (103,223) |
Accounts payable | 38,176 | 29,503 |
Accrued expenses | (116,544) | 64,173 |
Deferred rent liability | (2,790) | 38,333 |
Net cash provided by operating activities | 172,678 | 176,699 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of land, buildings, other tangible and intangible assets | (3,530,809) | (196,016) |
Investment in tenancy-in-common | (712,587) | |
Proceeds from sale of land, buildings, other tangible and intangible assets | 5,245,858 | |
Net cash provided by (used in) investing activities | 1,002,462 | (196,016) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of stock and warrants, net | 14,379,505 | |
Proceeds from issuance of redeemable interest | 2,100,000 | |
Mortgage loan repayments - related party | (1,100,000) | (800,000) |
Mortgage loan borrowings | 2,125,000 | 11,287,500 |
Mortgage loan repayments | (3,771,333) | (10,024,198) |
Deferred financing costs paid in cash | (153,239) | |
Debt issuance costs paid in cash | (39,991) | (564,857) |
Insurance financing borrowings | 277,059 | 189,153 |
Insurance financing repayments | (218,832) | (145,749) |
Distribution on redeemable non-controlling interests | (389,093) | (334,718) |
Dividends paid on common stock | (230,680) | (210,185) |
Net cash generated from (used in) financing activities | 11,931,635 | (756,293) |
Redemption of redeemable non-controlling interests | (1,200,000) | |
Net increase (decrease) in cash and cash equivalents | 13,106,775 | (775,610) |
Cash and cash equivalents and restricted cash - beginning of period | 1,122,364 | 1,398,365 |
Cash and cash equivalents and restricted cash - end of period | 14,229,139 | 622,755 |
CASH TRANSACTIONS | ||
Interest Paid | 938,984 | 940,316 |
NON-CASH TRANSACTIONS | ||
Stock issued for accrued liabilities | 11,000 | |
Deferred financing costs incurred on account | $ 182,697 | |
Deferred distribution on redeemable non-controlling interests | 20,597 | |
Accounts payable - related party for redemption of common stock shares | $ 100 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) | Total | Common Stock | Treasury Stock | Additional Paid-In- Capital | Accumulated Deficit |
Balance at Dec. 31, 2019 | $ 2,433,403 | $ 5,253 | $ 4,773,639 | $ (2,345,489) | |
Balance, Shares at Dec. 31, 2019 | 525,250 | ||||
Redeemable Non-Controlling Interest, Balance at Dec. 31, 2019 | 8,198,251 | ||||
Restricted stock unit compensation | 20,023 | 20,023 | |||
Distribution on Redeemable Non-Controlling Interest | (142,844) | ||||
Dividends paid on Common Stock | (105,101) | (105,101) | |||
Net (loss) income for the quarter | (494,032) | (494,032) | |||
Redeemable Non-Controlling Interest, Net (loss) income for the quarter | 142,844 | ||||
Balance at Mar. 31, 2020 | 1,854,293 | $ 5,253 | 4,688,561 | (2,839,521) | |
Balance, Shares at Mar. 31, 2020 | 525,250 | ||||
Redeemable Non-Controlling Interest, Balance at Mar. 31, 2020 | 8,198,251 | ||||
Balance at Dec. 31, 2019 | 2,433,403 | $ 5,253 | 4,773,639 | (2,345,489) | |
Balance, Shares at Dec. 31, 2019 | 525,250 | ||||
Redeemable Non-Controlling Interest, Balance at Dec. 31, 2019 | 8,198,251 | ||||
Net (loss) income for the quarter | (1,331,833) | ||||
Balance at Sep. 30, 2020 | 965,723 | $ 5,270 | 4,637,775 | (3,677,322) | |
Balance, Shares at Sep. 30, 2020 | 526,918 | ||||
Redeemable Non-Controlling Interest, Balance at Sep. 30, 2020 | 8,198,251 | ||||
Balance at Mar. 31, 2020 | 1,854,293 | $ 5,253 | 4,688,561 | (2,839,521) | |
Balance, Shares at Mar. 31, 2020 | 525,250 | ||||
Redeemable Non-Controlling Interest, Balance at Mar. 31, 2020 | 8,198,251 | ||||
Restricted stock unit compensation | 27,009 | 27,009 | |||
Distribution on Redeemable Non-Controlling Interest | (39,851) | ||||
Net (loss) income for the quarter | (282,575) | (282,575) | |||
Redeemable Non-Controlling Interest, Net (loss) income for the quarter | 39,851 | ||||
Balance at Jun. 30, 2020 | 1,598,727 | $ 5,253 | 4,715,570 | (3,122,096) | |
Balance, Shares at Jun. 30, 2020 | 525,250 | ||||
Redeemable Non-Controlling Interest, Balance at Jun. 30, 2020 | 8,198,251 | ||||
Restricted stock unit compensation | 27,306 | $ 17 | 27,289 | ||
Restricted stock unit compensation, Shares | 1,668 | ||||
Distribution on Redeemable Non-Controlling Interest | (152,023) | ||||
Dividends paid on Common Stock | (105,084) | (105,084) | |||
Net (loss) income for the quarter | (555,226) | (555,226) | |||
Redeemable Non-Controlling Interest, Net (loss) income for the quarter | 152,023 | ||||
Balance at Sep. 30, 2020 | 965,723 | $ 5,270 | 4,637,775 | (3,677,322) | |
Balance, Shares at Sep. 30, 2020 | 526,918 | ||||
Redeemable Non-Controlling Interest, Balance at Sep. 30, 2020 | 8,198,251 | ||||
Balance at Dec. 31, 2020 | 1,370,039 | $ 5,770 | 5,541,411 | (4,177,142) | |
Balance, Shares at Dec. 31, 2020 | 576,918 | ||||
Redeemable Non-Controlling Interest, Balance at Dec. 31, 2020 | 8,684,431 | ||||
Restricted stock unit compensation | 49,471 | $ 37 | 49,434 | ||
Restricted stock unit compensation, Shares | 3,749 | ||||
Common stock issued in lieu of cash compensation | 44,000 | $ 22 | 43,978 | ||
Common stock issued in lieu of cash compensation, Shares | 2,200 | ||||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 500,000 | ||||
Distribution on Redeemable Non-Controlling Interest | (150,826) | ||||
Dividends paid on Common Stock | (114,373) | (114,373) | |||
Net (loss) income for the quarter | (472,529) | (472,529) | |||
Redeemable Non-Controlling Interest, Net (loss) income for the quarter | 150,826 | ||||
Balance at Mar. 31, 2021 | 876,608 | $ 5,829 | 5,520,450 | (4,649,671) | |
Balance, Shares at Mar. 31, 2021 | 582,867 | ||||
Redeemable Non-Controlling Interest, Balance at Mar. 31, 2021 | 9,184,431 | ||||
Balance at Dec. 31, 2020 | 1,370,039 | $ 5,770 | 5,541,411 | (4,177,142) | |
Balance, Shares at Dec. 31, 2020 | 576,918 | ||||
Redeemable Non-Controlling Interest, Balance at Dec. 31, 2020 | 8,684,431 | ||||
Net (loss) income for the quarter | (393,230) | ||||
Balance at Sep. 30, 2021 | 14,709,082 | $ 22,727 | $ (100) | 19,256,827 | (4,570,372) |
Balance, Shares at Sep. 30, 2021 | 2,272,700 | ||||
Redeemable Non-Controlling Interest, Balance at Sep. 30, 2021 | 9,605,028 | ||||
Balance at Mar. 31, 2021 | 876,608 | $ 5,829 | 5,520,450 | (4,649,671) | |
Balance, Shares at Mar. 31, 2021 | 582,867 | ||||
Redeemable Non-Controlling Interest, Balance at Mar. 31, 2021 | 9,184,431 | ||||
Restricted stock unit compensation | 50,278 | 50,278 | |||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 950,000 | ||||
Distribution on Redeemable Non-Controlling Interest | (59,148) | ||||
Net (loss) income for the quarter | (376,813) | (376,813) | |||
Redeemable Non-Controlling Interest, Net (loss) income for the quarter | 59,148 | ||||
Balance at Jun. 30, 2021 | 550,073 | $ 5,829 | 5,570,728 | (5,026,484) | |
Balance, Shares at Jun. 30, 2021 | 582,867 | ||||
Redeemable Non-Controlling Interest, Balance at Jun. 30, 2021 | 10,134,431 | ||||
Restricted stock unit compensation | 53,887 | $ 248 | 53,639 | ||
Restricted stock unit compensation, Shares | 24,833 | ||||
Redemption of common stock | (100) | (100) | |||
Issuance of equity securities, net of issuance costs | 13,765,417 | $ 16,650 | 13,748,767 | ||
Issuance of equity securities, net of issuance costs, Shares | 1,665,000 | ||||
Redemption of Redeemable Non-Controlling Interest | (1,200,000) | ||||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 650,000 | ||||
Distribution on Redeemable Non-Controlling Interest | (179,119) | ||||
Dividends paid on Common Stock | (116,307) | (116,307) | |||
Net (loss) income for the quarter | 456,112 | 456,112 | |||
Redeemable Non-Controlling Interest, Net (loss) income for the quarter | 199,716 | ||||
Balance at Sep. 30, 2021 | 14,709,082 | $ 22,727 | $ (100) | $ 19,256,827 | $ (4,570,372) |
Balance, Shares at Sep. 30, 2021 | 2,272,700 | ||||
Redeemable Non-Controlling Interest, Balance at Sep. 30, 2021 | $ 9,605,028 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | Note 1 – Nature of Operations Generation Income Properties, Inc. (the “Company”) was formed as a Maryland corporation on September 19, 2015. The Company is an internally managed real estate investment company focused on acquiring and managing income-producing retail, office and industrial properties net leased to high quality tenants in major markets throughout the United States. The Company formed Generation Income Properties L.P. (the “Operating Partnership”) in October 2015. Substantially all of the Company’s assets are held by, and operations are conducted through the Operating Partnership. The Company is the general partner of the Operating Partnership and as of September 30, 2021 owned 85.2% of the outstanding common units of the Operating Partnership. The Company formed a Maryland entity GIP REIT OP Limited LLC in 2018 that owns 0.002% of the Operating Partnership. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Presentation The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) were omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements and footnotes included in the Company’s Annual Report on Form 1-K filed with the SEC on March 12, 2021. The results for the nine months ended September 30, 2021, are not necessarily indicative of the results to be expected for the year ending December 31, 2021. The Company adopted the calendar year as its basis of reporting. Consolidation The accompanying consolidated financial statements include the accounts of Generation Income Properties, Inc. and the Operating Partnership and all of the direct and indirect wholly-owned subsidiaries of the Operating Partnership and the Company’s subsidiaries. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements. The consolidated financial statements include the accounts of all entities in which the Company has a controlling interest. The ownership interests of other investors in these entities are recorded as non-controlling interests or redeemable non-controlling interest. Non-controlling interests are adjusted each period for additional contributions, distributions, and the allocation of net income or loss attributable to the non-controlling interests. Investments in entities for which the Company has the ability to exercise significant influence over, but does not have financial or operating control, are accounted for using the equity method of accounting. Accordingly, the Company’s share of the earnings (or losses) of these entities are included in consolidated net income or loss. Cash The Company considers all demand deposits, cashier’s checks and money market accounts to be cash equivalents. Amounts included in restricted cash represent funds held by the Company related to tenant escrow reimbursements and immediate repair reserve. The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash that sums to the total of those amounts at the end of the periods presented on the Company’s accompanying Consolidated Statements of Cash Flows: September 30, December 31, 2021 2020 Cash and cash equivalents $14,194,639 $937,564 Restricted cash 34,500 184,800 Total cash and cash equivalents and restricted cash $14,229,139 $1,122,364 Revenue Recognition We have determined that all of our leases should be accounted for as operating leases. The Company leases real estate to its tenants under long-term net leases which we account for as operating leases. Under this method, leases that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term. Certain leases also provide for additional rent based on tenants’ sales volumes. These rents are recognized when determinable after the tenant exceeds a sales breakpoint. Recognizing rent escalations on a straight-line method results in rental revenue in the early years of a lease being higher than actual cash received, creating a straight-line rent asset. Conversely, when actual cash collected is greater than the amount recognized on a straight-line basis, the difference is recognized as a liability. To the extent any of the tenants under these leases become unable to pay their contractual cash rents, the Company may be required to write down the straight-line rent receivable from those tenants, which would reduce rental income. Deferred rent asset as of September 30, 2021 and December 31, 2020 was approximately $ 145,400 126,700 185,800 188,600 The Company reviews the collectability of charges under its tenant operating leases on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. In the event that collectability exists with respect to any tenant changes, the Company recognizes an adjustment to rental income. The Company’s review of collectability of charges under its operating leases includes any accrued rental revenues related to the straight-line method of reporting rental revenue. There were no allowances for receivables recorded for the nine months ended September 30, 2021 or 2020. The Company’s leases provide for reimbursement from tenants for common area maintenance (“CAM”), insurance, real estate taxes and other operating expenses. A portion of our operating cost reimbursement revenue is estimated each period and is recognized as rental income in the period the recoverable costs are incurred and accrued. The Company often recognizes above- and below-market lease intangibles in connection with acquisitions of real estate. The capitalized above- and below-market lease intangibles are amortized over the Stock-Based Compensation The Company records all equity-based incentive grants to employees and non-employee members of the Company’s Board of Directors in operating expenses in the Company’s Consolidated Statements of Operations based on their fair values determined on the date of grant. Stock-based compensation expense, reduced for estimated forfeitures, is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the outstanding equity awards. Real Estate Acquisitions of real estate are recorded at cost. Real Estate Purchase Price Assignment The Company assigns the purchase price of real estate to tangible and intangible assets and liabilities based on fair value. Tangible assets consist of land, buildings and tenant improvements. Intangible assets and liabilities consist of the value of in-place leases and above or below market leases assumed with the acquisition. The Company assessed whether the purchase of the building falls within the definition of a business under ASC 805 and concluded that all asset transactions were an asset acquisition, therefore it was recorded at the purchase price, including capitalized acquisition costs, which is allocated to land, building, tenant improvements and intangible assets and liabilities based upon their relative fair values at the date of acquisition. The fair value of the in-place lease is the estimated cost to replace the leases (including loss of rent, estimated commissions and legal fees paid in similar leases). The capitalized in-place leases are amortized over the remaining team of the leases as amortization expense. The fair value of the above or below market lease is the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the estimated current market lease rate expected over the remaining non-cancelable life of the lease. The capitalized above or below market lease values are amortized as a decrease or increase to rental income over the remaining term of the lease. For additional information, see Note 4 - Acquired Lease Intangible Asset, net and Note 5 - Acquired Lease Intangible Liability, net. Depreciation Expense Real estate and related assets are stated net of accumulated depreciation. Renovations, replacements and other expenditures that improve or extend the life of assets are capitalized and depreciated over their estimated useful lives. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful life of the buildings, which are generally between 30 and 50 years, tenant improvements, which are generally between 2 and 10 years. Income Taxes The Company intends to operate and be taxed as a real estate investment trust (“REIT”) under Section 856 through 860 of the Internal Revenue Code (“Code”), commencing with our taxable year ending December 31, 2021. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its taxable income to its stockholders. As a REIT, the Company generally will not be subject to federal corporate income tax on that portion of its taxable income that is currently distributed to stockholders. We account for deferred income taxes using the asset and liability method and recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our financial statements or tax returns. Under this method, we determine deferred tax assets and liabilities based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes us to change our judgment about expected future tax consequences of events, is included in the tax provision when such changes occur. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes us to change our judgment about the realizability of the related deferred tax asset, is included in the tax provision when such changes occur. The Company also recognizes liabilities for unrecognized tax benefits which are recognized if the weight of available evidence indicates that it is not more-likely-than-not that the positions will be sustained on examination, including resolution of the related processes, if any. As of each balance sheet date, unrecognized benefits are reassessed and adjusted if the Company’s judgement changes as a result of new information. Earnings per Share In accordance with ASC 260, basic earnings/loss per share (“EPS”) is computed by dividing net loss attributable to the Company that is available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of warrants), and convertible debt, using the if-converted method. Diluted EPS excludes all potentially dilutive securities such as warrants, options and restricted stock units if their effect is anti-dilutive. As of September 30, 2021 and December 31, 2020, all potentially dilutive securities were excluded because the effect was anti-dilutive. Impairments The Company reviews real estate investments and related lease intangibles, for possible impairment when certain events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable though operations plus estimated disposition proceeds. Events or changes in circumstances that may occur include, but are not limited to, significant changes in real estate market conditions, estimated residual values, and an expectation to sell assets before the end of the previously estimated life. Impairments are measured to the extent the current book value exceeds the estimated fair value of the asset less disposition costs for any assets classified as held for sale. There were no impairments during the nine months ended September 30, 2021 or 2020. The valuation of impaired assets is determined using valuation techniques including discounted cash flow analysis, analysis of recent comparable sales transactions, and purchase offers received from third parties, which are Level 3 inputs. The Company may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate. Estimating future cash flows is highly subjective and estimates can differ materially from actual results. Deferred Financing Costs As of September 30, 2021 and December 31, 2020, the Company incurred $1,261 thousand and $614 thousand of costs associated with the Company’s public equity raise that closed on September 8, 2021. The $1,261 thousand of deferred offering costs were reclassified to additional paid in capital in connection with the successful offering. |
Investments in Real Estate
Investments in Real Estate | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Investments in Real Estate | Note 3 – Investments in Real Estate The Company’s real estate is comprised of the following: September 30, December 31, 2021 2020 Property $ 36,621,767 $ 37,352,447 Tenant improvements 482,701 482,701 Acquired lease intangible assets 2,949,411 3,014,149 Total 40,053,879 40,849,297 Less accumulated depreciation and amortization (3,168,841 ) (2,317,454 ) Total investments, net $ 36,885,038 $ 38,531,843 Depreciation expense for the three and nine-months ended September 30, 2021 and 2020 was approximately $273,300 and $ 833,300 776,100 Acquisitions: During the nine-months ended September 30, 2021, the Company acquired two properties. Total Manteo, NC Plant City, FL Property $ 2,149,015 $ 1,635,824 $3,784,839 Acquired lease intangible assets 100,379 121,509 221,888 Total investments 2,249,394 1,757,333 4,006,727 Less acquired lease intangible liability 511,620 — 511,620 Total investments $ 1,737,774 $ 1,757,333 $3,495,107 The first property is located in Manteo, NC and was purchased on February 11, 2021 using a $500,000 cash capital contribution through the issuance of a redeemable non-controlling interest and debt of $1,275,000. The second property is located in Plant City, FL and was purchased on April 21, 2021 using a $950,000 cash capital contribution through the issuance of a redeemable non-controlling interest and debt of $850,000. The acquisitions are accounted for as asset acquisitions under ASC 805-50, Business Combinations. The purchase price of the asset acquisitions was allocated to land, building, and acquired lease intangible assets and liabilities based on management’s estimate. Dispositions: During the nine-months ended September 30, 2021, the Company sold one property. Cocoa Beach, FL Property $ 4,539,617 Acquired lease intangible assets 298,230 Total investments 4,837,847 Less accumulated depreciation and amortization (313,447) Less acquired lease intangible liability, net (202,650) Net book value of property upon sale $ 4,321,750 The property was located in Cocoa Beach, FL and was sold on August 31, 2021 for $5.2 million and recognized a gain of $923 thousand. |
Acquired Lease Intangible Asset
Acquired Lease Intangible Asset, Net | 9 Months Ended |
Sep. 30, 2021 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Acquired Lease Intangible Asset, Net | Note 4 – Acquired Lease Intangible Asset, net Intangible assets, net is comprised of the following: September 30, December 31, 2021 2020 Acquired lease intangible assets $ 2,949,411 $ 3,014,149 Accumulated amortization (896,918 ) (624,106 ) Acquired lease intangible assets, net $ 2,052,493 $ 2,390,043 The amortization for lease intangible assets for the three and nine-months ended September 30, 2021 and 2020 was approximately $114,800 and $331,500 for 2021 and $102,600 and $307,800 for 2020, respectively. The future amortization for intangible assets is listed below: As of September 30, 2021 2021 (three months) $104,000 2022 305,100 2023 305,100 2024 305,100 2025 305,100 Thereafter 728,100 $2,052,500 |
Acquired Lease Intangible Liabi
Acquired Lease Intangible Liability, Net | 9 Months Ended |
Sep. 30, 2021 | |
Below Market Lease [Abstract] | |
Acquired Lease Intangible Liability, net | Note 5 – Acquired Lease Intangible Liability, net Acquired lease intangible liability is comprised of the following: September 30, December 31, 2021 2020 Acquired lease intangible liability $845,063 $585,792 Less: recognized rental income (236,366) (170,144) Total below market lease, net $608,697 $415,648 The amortization for below market leases for the three and nine-months ended September 30, 2021 and 2020 was approximately $40,300 and $115,921 for 2021 and $27,400 and $ 82,100 The future amortization for intangible liabilities is listed below: As of September 30, 2021 2021 (three months) $31,300 2022 86,700 2023 86,700 2024 86,700 2025 86,700 Thereafter 230,600 $608,700 |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interests | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interests | Note 6 – Redeemable Non-Controlling Interests The following table reflects our Redeemable Non-Controlling Interests: Brown Family Trust Irby Prop Partners Hornstrom GIP Fund I Greenwal L.C. Riverside Crossing L.C. Total Balance, December 31, 2019 $1,200,000 $- $- $- $4,965,000 $2,033,251 $8,198,251 Distribution on Redeemable Non-Controlling Interest (20,375) - - - (86,887) (35,582) (142,844) Net income for the quarter 20,375 - - - 86,887 35,582 142,844 Balance, March 31, 2020 $1,200,000 $- $- $- $4,965,000 $2,033,251 $8,198,251 Distribution on Redeemable Non-Controlling Interest (39,851) - - - - - (39,851) Net income for the quarter 39,851 - - - - - 39,851 Balance, June 30, 2020 $1,200,000 $- $- $- $4,965,000 $2,033,251 $8,198,251 Distribution on Redeemable Non-Controlling Interest (29,553) - - - (86,888) (35,582) (152,023) Net income for the quarter 29,553 - - - 86,888 35,582 152,023 Balance, September 30, 2020 $1,200,000 $- $- $- $4,965,000 $2,033,251 $8,198,251 Balance, December 31, 2020 $1,200,000 $- $- $486,180 $4,965,000 $2,033,251 $8,684,431 Issuance of Redeemable Non-Controlling Interest for property acquisition 500,000 - - - - - 500,000 Distribution on Redeemable Non-Controlling Interest (37,104) - - - (33,041) (80,681) (150,826) Net income for the quarter 37,104 - - - 33,041 80,681 150,826 Balance, March 31, 2021 $1,700,000 $- $- $486,180 $4,965,000 $2,033,251 $9,184,431 Issuance of Redeemable Non-Controlling Interest for property acquisition - 950,000 - - - - 950,000 Distribution on Redeemable Non-Controlling Interest (41,125) (15,275) - (2,748) - - (59,148) Net income for the quarter 41,125 15,275 - 2,748 - - 59,148 Balance, June 30, 2021 $1,700,000 $950,000 $- $486,180 $4,965,000 $2,033,251 $10,134,431 Redemption of Redeemable Non-Controlling Interest for property disposal (1,200,000) - - - - - (1,200,000) Issuance of Redeemable Non-Controlling Interest for property acquisition - - 650,000 - - - 650,000 Distribution on Redeemable Non-Controlling Interest (31,399) (19,081) (6,838) (7,898) (33,040) (80,863) (179,119) Net income for the quarter 31,399 36,259 10,257 7,898 33,040 80,863 199,716 Balance, September 30, 2021 $500,000 $967,178 $653,419 $486,180 $4,965,000 $2,033,251 $9,605,028 As part of the Company’s acquisition of a building for $4.5 million in Cocoa, FL, one of the Company’s operating subsidiaries entered into a preferred equity agreement with Brown Family Trust on September 11, 2019 pursuant to which the Company’s subsidiary received a capital contribution of $1,200,000. Pursuant to the agreement, the Company was required to pay the preferred equity member a 10% IRR on a monthly basis and redeem the entire amount due after 24 months at the option of the preferred equity member. The Operating Partnership, Generation Income Properties, LP, was the general manager of the subsidiary while Brown Family Trust was a preferred member. Because of the redemption right, the non-controlling interest was presented as temporary equity at redemption value. The Company redeemed the Brown Family Trust $1.2 million Redeemable Non-Controlling Interest upon the sale property in August 2021. As part of the Company’s acquisition of a building for $1.7 million in Manteo, NC, one of the Company’s operating subsidiaries entered into a preferred equity agreement with Brown Family Trust on February 11, 2021 pursuant to which the Company’s subsidiary received a capital contribution of $500,000. Pursuant to the agreement, the Company will pay the preferred equity member a 9% IRR on a monthly basis and redeem the entire amount due after 24 months at the option of the preferred equity member. The Operating Partnership, Generation Income Properties, LP, is the general manager of the subsidiary while Brown Family Trust is a preferred member. Because of the redemption right, the non-controlling interest in presented as temporary equity at redemption value. The current redemption amount is $ 500,000 . Distributable operating funds are distributed first to Brown Family Trust until the unpaid preferred return is paid off and then to the Company. Income is allocated 100 % to the Company. For the nine-months ended September 30, 2021 and 2020, the Company paid these Redeemable Interests $110 thousand and $90 thousand, respectively in preferred distributions for these two agreements. As part of the Company’s acquisition of a building for $1.7 million in Plant City, FL, one of the Company’s operating subsidiaries entered into a preferred equity agreement with preferred equity partners (Irby Prop Partners) on April 21, 2021 pursuant to which the Company’s subsidiary received a capital contribution of $950,000. Pursuant to the agreement, the Company will pay the preferred equity member a 12% total IRR with an 8% IRR paid on a monthly basis and the deferred IRR will be paid at the end of 24 months along with the entire $950,000 amount due after 24 months at the option of the preferred equity member. The Operating Partnership, Generation Income Properties, LP, is the general manager of the subsidiary. Because of the redemption right, the non-controlling interest in presented as temporary equity at redemption value. The current redemption amount is $967,178. Distributable operating funds are distributed first to the preferred equity partners until the unpaid preferred return is paid off and then to the Company. Income is allocated 100% to the Company. For the nine-months ended September 30, 2021, the Company paid these Redeemable Interests $34 thousand in distributions and accrued $17 thousand of the deferred IRR. As part of the Company’s investment in a tenant in common entity for $0.7 million in Rockville, IL, one of the Company’s operating subsidiaries entered into a preferred equity agreement with preferred equity partner (Mr. Hornstrom) on August 2, 2021 pursuant to which the Company’s subsidiary received a capital contribution of $650,000. Pursuant to the agreement, the Company will pay the preferred equity member a 12% total IRR with an 8% IRR paid on a monthly basis and the deferred IRR will be paid at the end of 24 months along with the entire $650,000 amount due after 24 months at the option of the preferred equity member. The Operating Partnership, Generation Income Properties, LP, is the general manager of the subsidiary. Because of the redemption right, the non-controlling interest in presented as temporary equity at redemption value. The current redemption amount is $653,419. Distributable operating funds are distributed first to the preferred equity partners until the unpaid preferred return is paid off and then to the Company. Income is allocated 100% to the Company. For the nine-months ended September 30, 2021, the Company paid these Redeemable Interests $7 thousand in distributions accrued $3 thousand of the deferred IRR. As part of the Company’s acquisition of two buildings on September 30, 2019 for $18.6 million in Norfolk, VA, the Operating Partnership entered into contribution agreements with two entities (Greenwal, LC and Riverside Crossing, L.C.) that resulted in the issuance of 349,913 common units in Operating Partnership at $20.00 per share for a total value of $6,998,251 or as of September 30, 2021 a 13.8% interest in our Operating Partnership. The contribution agreement allows for the two investors to require the Operating Partnership to redeem, all or a portion of its units for either (i) the Redemption Amount (within the meaning of the Partnership Agreement), or (ii) until forty-nine (49) months from date of Closing, cash in an agreed-upon Value (within the meaning of the Partnership Agreement) of $20.00 per share of common stock of the Company, as set forth on the Notice of Redemption. As such, the Company has determined their equity should be classified as a Redeemable Non-Controlling Interest. As part of the Company’s acquisition of one building on November 30, 2020 for $1.8 million in Tampa, FL, the Operating Partnership entered into a contribution agreement with one entity (GIP Fund I) that resulted in the issuance of 24,309 common units in Operating Partnership at $20.00 per share for a total value of $486,180 or as of September 30, 2021 a 1.0% interest in our Operating Partnership. The contribution agreement allows for the two investors to require the Operating Partnership to redeem, all or a portion of its units for either (i) the Redemption Amount (within the meaning of the Partnership Agreement), or (ii) until forty nine (49) months from date of Closing, cash in an agreed-upon Value (within the meaning of the Partnership Agreement) of $20.00 per share of common stock of the Company, as set forth on the Notice of Redemption. As such, the Company has determined their equity should be classified as a Redeemable Non-Controlling Interest. For the nine-months ended September 30, 2021 and 2020, the Company paid these three Redeemable Interests $238 thousand and $245 thousand, respectively in distributions. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | Note 7 – Equity Authorized Equity The Company is authorized to issue up to 100,000,000 shares of common stock and 10,000,000 of undesignated preferred stock. No preferred shares have been issued as of the date of this report. Holders of the Company’s common stock are entitled to receive dividends when authorized by the Company’s Board of Directors. Equity Issuances On April 25, 2019, the Company raised $1,000,000 by issuing 50,000 Units with each Unit being comprised of one share of its Common Stock, and one warrant to purchase one share of its Common Stock. Each Unit was sold for a price of $20.00 per Unit. The shares of the Company’s Common Stock and warrants included in the Units, were offered together, but the securities included in the Units are issued separately. The warrants are exercisable at a price of $20.00 per share of Common Stock, subject to adjustment in certain circumstances, and will expire seven years from the date of issuance. On November 13, 2020, the Company raised $1,000,000 by issuing 50,000 Units with each Unit being comprised of one share of its Common Stock, and one warrant to purchase one share of its Common Stock. Each Unit was sold for a price of $20.00 per Unit. The shares of the Company’s Common Stock and warrants included in the Units, were offered together, but the securities included in the Units are issued separately. The warrants are exercisable at a price of $20.00 per share of Common Stock, subject to adjustment in certain circumstances, and will expire seven years from the date of issuance. On September 8, 2021, the Company As part of the Public Offering, on September 8, 2021, the Company entered into an agreement with the CEO to redeem 112,500 shares of common stock for $100. As of September 30, 2021, these shares had not yet been physically returned to our transfer agent nor has the agent’s records been adjusted and the CEO has not been paid. The Company has recorded this transaction in the current period in accounts payable – related party and treasury shares since it was effective upon the Public Offering. On September 30, 2021, the Company issued and sold as part of the underwriter’s Over-Allotment Option an additional 165,000 Units and generated additional proceeds of $1.5 million, net of underwriter discounts. The Investor Warrants issued in the offering entitle the holder to purchase one share of Common Stock at a price equal to $10.00 for a period of five years. The Investor Warrants may be exercised on a cashless basis if there is no effective registration statement available for the resale of the shares of common stock underlying such warrants. In addition, after 120 days after the Investor Warrants are issued, any Investor Warrant may be exercised on a cashless basis for 10% of the shares of Common Stock underlying the Investor Warrant if the volume-weighted average trading price of the Company’s shares of Common Stock on Nasdaq is below the then-effective exercise price of the Investor Warrant for 10 consecutive trading days. In addition, the Company issued to Maxim Group LLC (or its designee) warrants to purchase an aggregate of 149,850 shares of Common Stock, which is equal to an aggregate of 9% of the number of shares of Common Stock sold in the offering (the “Representative’s Warrants”). The Representative’s Warrants have an exercise price equal to $12.50, may be exercised on a cashless basis and will be exercisable six months following the closing date and until September 2, 2026. For the nine months ended September 30, 2021, the Company moved approximately $1.3 million of deferred financing costs into additional paid in capital of which $614,088 had been incurred as of December 31, 2020. Warrants The Company has 1,914,850 warrants outstanding as of September 30, 2021, subject to certain circumstances, and which will expire five to seven years from the date of issuance. Issue Date Warrants April 25, 2019 exercise price of $20.00 50,000 November 13, 2020 exercise price of $20.00 50,000 September 8, 2021 exercise price of $10.00 1,500,000 September 8, 2021 exercise price of $12.50 135,000 September 30, 2021 exercise price of $10.00 165,000 September 30, 2021 exercise price of $12.50 14,850 The following is a summary of warrants outstanding as of September 30: 2021 2020 Number of Warrants Weighted Average Price Weighted Average Remaining Life Number of Warrants Weighted Average Price Weighted Average Remaining Life Beginning of the year 100,000 $20.00 5.3 50,000 $20.00 6.3 Issuance 1,814,850 $10.21 5.0 - - - Ending balance 1,914,850 $10.72 4.97 50,000 $20.00 5.6 Warrants exercisable 1,765,000 $10.57 4.99 50,000 $20.00 5.6 There was no intrinsic value for the warrants as of September 30, 2021. Stock Compensation On July 15, 2019, the board of directors granted 2,500 restricted shares to each of the two independent directors that vest every 12 months on an annual basis over 36 months. The award is valued at $50,000 for each grant and was based on the equity pricing issuance of $20.00 per share. The pro-rated vested share restriction will be removed upon the annual anniversary of the award. The 1,668 and 1,666 restricted shares were issued to the two directors in September 2020 and September 2021, respectively and another 1,666 restricted shares were issued to the two directors in September 2021. On February 3, 2020, the board of directors granted 2,500 restricted shares to two new independent directors that vest every 12 months on an annual basis over 36 months. The award is valued at $50,000 for each grant and was based on the equity pricing issuance of $20.00 per share. The pro-rated vested share restrictions will be removed upon the annual anniversary of the award. The 1,666 unrestricted shares were issued to the two directors in February 2021 and another 3,334 restricted shares were issued to the two directors in September 2021. On February 3, 2020, the board of directors granted 6,250 restricted shares to its chief financial officer that will vest every 12 months on an annual basis over 36 months. The award is valued at $125,000 for each grant and was based on the equity pricing issuance of $20.00 per share. The pro-rated vested share restrictions will be removed upon the annual anniversary of the award. The 2,083 unrestricted shares were issued to the chief financial officer in February 2021 and another 4,167 restricted shares were issued to the chief financial officer in September 2021. Pursuant to an amended employment agreement in which the chief financial officer waived his right to cash compensation in lieu of being awarded 550 restricted shares of common stock each month until the closing of an initial underwritten public offering, we issued the chief financial officer 2,200 shares of stock in March 2021 representing four months of compensation from December 2020 to March 2021. These shares are valued at $20.00 per share and are accrued as compensation expense until issued by the Company. The board granted 14,000 restricted shares to directors, officers and employees effective January 1, 2021 valued at $20.00 per share that vest annually over 3 years. The pro-rated vested share restrictions will be removed upon the annual anniversary of the award. The 14,000 restricted shares were issued to the directors, officers and employees in September 2021. Generation Income Properties, Inc. 2020 Omnibus Incentive Plan In connection with the Public Offering, the Company board has adopted, and stockholders have approved, the Generation Income Properties, Inc. 2020 Omnibus Incentive Plan (the “ Omnibus Incentive Plan Restricted Common Shares issued to the Board and Management 2021 2020 Number of Shares Outstanding at beginning of the period 14,582 5,000 Restricted Shares Issued 14,000 11,250 Restricted Shares Vested (5,415) (1,668) Number of Restricted Shares Outstanding at end of the period 23,167 14,582 Compensation expense $153,636 $74,338 Common Shareholders Cash Distributions – Nine-Month Periods ended September 30, 2021 and 2020 Board of Directors Authorized Date Record Date Per Share Cash Total President August 25, 2021 August 31, 2021 $ 0.325 $ 116,307 39.0% February 26, 2021 March 15, 2021 $ 0.325 $ 114,373 39.0% June 23, 2020 July 2, 2020 $ 0.35 $ 105,084 42.8% January 31, 2020 February 28, 2020 $ 0.35 $ 105,101 42.8% * Our president and chairman waived his right to receive a dividend for all of these periods mentioned above. Operating Partnership Cash Distributions – Nine-Month Periods ended September 30, 2021 and 2020 Board of Directors Record Date Per Share Cash Total Dividends August 25, 2021 August 31, 2021 $ 0.325 $ 121,801 February 26, 2021 March 15, 2021 $ 0.325 $ 116,470 June 23, 2020 July 2, 2020 $ 0.35 $ 122,470 January 31, 2020 February 28, 2020 $ 0.35 $ 122,469 While we are under no obligation to do so, we expect to declare and pay dividends to our stockholders. The issuance of a dividend will be determined by our board of directors based on our financial condition and such other factors as our board of directors deems relevant. We have not established a minimum dividend, and our charter does not require that we issue dividends to our stockholders other than as necessary to meet IRS REIT qualification standards. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 8 – Leases Future Minimum Rents At September 30, 2021, we had four tenants that each account for more than 10% of our rental revenue for the nine-months ended September 30, 2021 (17.3% for Pratt and Whitney Corporation with respect to the single tenant building in Huntsville, AL property; 22.9% for the General Services Administration with respect to the two-tenant office building in Norfolk, VA; 19.9% for PRA Holding with respect to the single tenant building in Norfolk, VA and 10.2% for Maersk Inc. with respect to two-tenant office building in Norfolk, VA). At September 30, 2020, we had four tenants that each account for more than 10% of our rental revenue for the nine-months ended September 30, 2020 (20.8% for Pratt and Whitney Corporation with respect to the single tenant building in Huntsville, AL; 26.2% for the General Services Administration with respect to the two-tenant office building in Norfolk, VA; 22.7% for PRA Holding with respect to the single tenant building in Norfolk, VA and 11.1% for Maersk Inc. with respect to two-tenant office building in Norfolk, VA). The following table presents future minimum base rental cash payments due to the Company over the next five calendar years and thereafter as of September 30, 2021: Future Minimum Base Rent Payments 2021 (three months) $857,000 2022 3,443,000 2023 3,074,000 2024 3,078,000 2025 2,943,000 Thereafter 7,125,000 $20,520,000 |
Promissory Notes
Promissory Notes | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Promissory Notes | Note 9 – Promissory Notes The Company had the following promissory notes outstanding as of September 30, 2021 and December 31, 2020, respectively: As of September 30, As of December 31, 2021 2020 Interest Rate Maturity Date Promissory note issued for $3,407,391 by a financial institution. Note was issued on September 11, 2019 and prepaid without penalty upon the sale of the Walgreen-Cocoa, Florida property on August 31, 2021 which was securing the note. 2.36% adjusted monthly based on 30 day LIBOR plus 225 basis points 9/11/2021 $- $3,407,391 Promissory note issued for $1,286,664 by a financial institution, interest and principal payments due monthly of approximately $3,800. Note was originally issued on January 15, 2015 and modified on November 30, 2020 and can be prepaid at any time without penalty. Secured by out Tampa Sherwin-Williams property. 3.72% fixed rate after using SWAP whereas the loan is LIBOR plus 2.75% 8/10/2028 1,286,664 1,286,664 Promissory note issued for $1,275,000 by a financial institution. Note was issued on February 4, 2021 and can be prepaid at any time without penalty. Secured by our GSA-Manteo, North Carolina property. 3.4% adjusted monthly based on 30 day Wall Street Journal Prime Rate with minimum of 3.25% 2/4/2023 1,275,000 - Promissory note issued for $850,000 by a financial institution. Note was issued on April 21, 2021 and can be prepaid at any time without penalty. Secured by our Irby - Plant City, FL property. 2.75% adjusted monthly based on 30 day Wall Street Journal Prime Rate minus 0.5% with minimum of 3.0% for first 24 months, then U.S. Treasury Securities Rate plus 2.75% with a minimum of 3.25% 12/31/2024 850,000 - Promissory note issued for $8,260,000 by a financial institution, interest and principal payments due monthly of approximately $41,500. Note was issued on September 30, 2019 and can be prepaid at any time without penalty. Secured by our GSA/Maersk - Norfolk, Virginia property. The interest rate was reduced in March 2021 from 4.25% to 3.5%. 3.50% 9/30/2024 7,861,426 8,022,271 Promissory note issued for $5,216,749 by a financial institution, interest and principal payments due monthly of approximately $27,400. Note was originally issued on October 23, 2017 and modified on September 30, 2019 and can be prepaid at any time without penalty. Secured by our PRA - Norfolk, Virginia property. The interest rate was reduced in March 2021 from 4.25% to 3.5%. 3.50% 10/23/2024 4,929,070 5,041,935 Promissory note issued for $1,900,000 to a Clearlake Preferred Member, secured by all of the personal and fixture property of the Operating Partnership, interest payments due monthly. Note was issued on December 16, 2019 and was prepaid without penalty on September 30, 2021. 10.00% 12/16/2021 - 1,100,000 Promissory note issued for $11,287,500 by a financial institution, interest only payment is approximately $39,000 and starting April 6, 2021, interest and principal payments due monthly of approximately $55,000. Note was issued on February 11, 2020. Secured by our Washington, DC, Tampa, FL and Huntsville, AL properties. It cannot be prepaid without a penalty 4.17% 3/6/2030 11,197,268 11,287,500 Less: debt issuance costs, net (633,647) (689,190) $26,765,781 $29,456,571 The Company amortized debt issuance costs during the three and nine-month periods ended September 30, 2021 and 2020 to interest expense of approximately $30,700 and $94,600 for 2021 and $28,400 and $106,200 for 2020, respectively. The Company paid debt issuance costs for the nine-months ended September 30, 2021 and 2020 of approximately $40,000 and $564,900, respectively. As of September 30, 2021, the Company had three promissory notes totaling approximately $24.0 million require Debt Service Coverage Ratios (also known as “DSCR”) of 1.25:1.0, one promissory note totaling $1.3 million require DSCR of 1.20:1.0, one promissory note totaling $0.9 million require DSCR of 1.15:1.0 and one promissory note totaling $1.3 million require DSCR of 1.30:1.0. We were in compliance with all covenants as of September 30, 2021. As of September 30, 2021, the Company’s President has personally guaranteed the repayment of the $11.2 million due under the DC/Tampa/Huntsville loan, the $1.3 million loan secured by our Tampa Sherwin Williams property, the $0.9 million loan secured by our Irby property and the $1.3 million loan secured by our GSA Manteo NC property. The aggregate guaranteed principal amount of these loans total approximately $14.6 million. The Company’s President has also provided a guaranty of the Borrower’s nonrecourse carveout liabilities and obligations in favor of the lender for the Norfolk, Virginia property loans, with an aggregate principal amount of approximately $12.8 million. The Company modified the Bayport loans in February 2021 for no fees and reduced the associated interest rate from 4.25% to 3.5%. The Company determined that the debt modification was not substantial under ASC 470-50. Minimum required principal payments on the Company’s debt as of September 30, 2021 are as follows: As of September 30, 2021 2021 (three months) $141,575 2022 580,740 2023 1,890,446 2024 12,982,315 2025 251,011 2026 and beyond 11,553,341 $27,399,428 We intend to repay amounts outstanding under any credit facilities as soon as reasonably possible. No assurance can be given that we will be able to obtain additional credit facilities. We anticipate arranging and utilizing additional revolving credit facilities to potentially fund future acquisitions (following investment of the net proceeds of our offerings), return on investment initiatives and working capital requirements. |
Related Party
Related Party | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party | Note 10 – Related Party The Company had previously engaged 3 Properties (a brokerage and asset manager company) that is owned 100% by the Company’s President, when it purchased properties and to manage properties. This agreement was terminated effective August 31, 2020. For the nine-months ended September 30, 2020, the Company paid 3 Properties approximately $40,135 for asset management services under this agreement. |
Tenant in Common Investment
Tenant in Common Investment | 9 Months Ended |
Sep. 30, 2021 | |
Tenant In Common Investment [Abstract] | |
Tenant in Common Investment | Note 11 – Tenant in Common Investment On August 13, 2021, the Company entered into a tenancy-in-common (“TIC”) structure whereby the TIC acquired a 15,288 square foot single The acquisition of this property was financed in part through the issuance of a Promissory note for $2,715,000 by a financial institution as part of a Tenants in Common ownership structure. The Note was issued on August 13, 2021 and can be prepaid at any time without penalty and is secured by the Lazy Boy - Rockville, IL property. The Company's share of this debt is approximately $1.0 million. The Company’s President has personally guaranteed the repayment of the $2.7 million loan. The loan has normal covenants which includes DSCR 1.50:1.0. The condensed income statement for the nine months ended September 30, 2021 for the Tenant in Common Investment is as follows: Total Company Portion Revenue $ 48,757 $ 17,943 Total operating expenses 35,862 13,193 Operating income $ 12,895 $ 4,750 The condensed balance sheet as of September 30, 2021 for the Tenant in Common Investment is as follows: September 30, 2021 Property, net of depreciation $ 4,358,785 Prepaid expenses 1,088 Deferred rent asset 527 Acquired lease intangible asset, net of amortization 292,006 Due from tenant-in-common 39,257 Total assets $ 4,691,663 Mortgage payable net of unamortized debt issuance costs $ 2,671,742 Prepaid rent 29,900 Accrued expenses 5,877 Accounts payable - related party 4,726 Acquired lease intangible liability, net of amortization 44,860 Equity, GIP Inc. Tenant-in-common 717,337 Equity, Sunny Ridge Tenant-in-common 1,217,221 Total liabilities and equity $ 4,691,663 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 12 – Subsequent Event On October 5, 2021, the Company awarded Mr. Russell as part of his services rendered in connection with the equity offering, a bonus of 10,000 shares and a $125,000 cash bonus. On October 28, 2021, we executed a purchase and sale agreement for the acquisition of a 30,000 square-foot single-tenant retail building in Grand Junction, Colorado for total consideration of approximately $4.7 million. It is anticipated that the acquisition of this property will be funded by a combination of debt and equity. The building is occupied by Best Buy with approximately 5.5 years remaining on their primary lease term and annualized base rent of approximately $353,000. The transaction is subject to customary closing conditions and due diligence. On October 27, 2021, we executed a purchase and sale agreement for the acquisition of a 11,000 square-foot single-tenant retail building in Chicago, Illinois for total consideration of approximately $3.1 million. It is anticipated that the acquisition of this property will be funded by a combination of debt and equity. The building is occupied by Fresenius Medical Care with approximately 5 years remaining on their primary lease term and annualized base rent of approximately $224,000. The transaction is subject to customary closing conditions and due diligence. On October 11, 2021, we executed a contribution and subscription agreement for the acquisition of a 2,600 square-foot single-tenant retail building in Tampa, Florida for total consideration of approximately $2.2 million. It is anticipated that the acquisition of this property will be funded by a combination of the issuance of approximately $1.1 million worth of operating partnership units of Generation Income Properties LP and debt of approximately $1.1 million. The building is occupied by Starbucks with approximately 0.5 years remaining on their primary lease term and annualized base rent of approximately $135,000. The transaction is subject to customary closing conditions and due diligence. On November 11, 2021, we executed a purchase and sale agreement for the acquisition of a It is anticipated that the acquisition of this property will be funded by a combination of debt and equity. On October 26, 2021, the Operating Partnership entered into a Commitment Letter with American Momentum Bank (the “Lender”) for a $25 million master credit facility (the “Facility”) to be used for the acquisition of income producing real estate properties. Borrowings under the Facility will accrue interest at a variable rate equal to the Wall Street Journal Prime rate, adjusted monthly, subject to a floor interest rate of 3.25% per annum. At each loan closing under the Facility, the borrower shall pay the Lender a commitment fee equal to 0.50% of the applicable loan amount. Each loan will have an interest-only payment term for twenty-four months from the applicable loan closing date and all interest and principal outstanding shall be due and payable in full two years from the applicable loan closing date. Each loan will be secured by the real estate property acquired and the associated rental income and payment will be guaranteed by the Operating Partnership. David Sobelman, the Company’s Chairman, President and Chief Executive Officer, will be required to execute a non-recourse guarantee in connection with each loan that is subject to standard “bad-boy” carve out provisions. Each loan agreement under the Facility will require the borrower to maintain a debt service coverage ratio of not less than 1.50 to 1.00 over the term of the loan and will contain customary affirmative covenants, negative covenants and events of default. Should any event of default occur, the loan commitments under the Facility may be terminated and any outstanding borrowings, together with accrued interest, could be declared immediately due and payable. The initial loan under the Facility must close on or before December 31, 2021 and all loans under the Facility must close within two years after the closing date of the initial loan. The Facility is voidable at the option of the Lender in specified circumstances, including a material adverse change in the Company’s financial condition and upon any changes in management of the Company that are unacceptable to the Lender. On October 6, 2021, the Company announced that its Board of Directors on October 5, 2021 authorized a $0.054 per share cash distribution for shareholders of record of the Company’s common stock as of October 15, 2021, November 15, 2021 and December 15 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) were omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements and footnotes included in the Company’s Annual Report on Form 1-K filed with the SEC on March 12, 2021. The results for the nine months ended September 30, 2021, are not necessarily indicative of the results to be expected for the year ending December 31, 2021. The Company adopted the calendar year as its basis of reporting. |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of Generation Income Properties, Inc. and the Operating Partnership and all of the direct and indirect wholly-owned subsidiaries of the Operating Partnership and the Company’s subsidiaries. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements. The consolidated financial statements include the accounts of all entities in which the Company has a controlling interest. The ownership interests of other investors in these entities are recorded as non-controlling interests or redeemable non-controlling interest. Non-controlling interests are adjusted each period for additional contributions, distributions, and the allocation of net income or loss attributable to the non-controlling interests. Investments in entities for which the Company has the ability to exercise significant influence over, but does not have financial or operating control, are accounted for using the equity method of accounting. Accordingly, the Company’s share of the earnings (or losses) of these entities are included in consolidated net income or loss. |
Cash | Cash The Company considers all demand deposits, cashier’s checks and money market accounts to be cash equivalents. Amounts included in restricted cash represent funds held by the Company related to tenant escrow reimbursements and immediate repair reserve. The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash that sums to the total of those amounts at the end of the periods presented on the Company’s accompanying Consolidated Statements of Cash Flows: September 30, December 31, 2021 2020 Cash and cash equivalents $14,194,639 $937,564 Restricted cash 34,500 184,800 Total cash and cash equivalents and restricted cash $14,229,139 $1,122,364 |
Revenue Recognition | Revenue Recognition We have determined that all of our leases should be accounted for as operating leases. The Company leases real estate to its tenants under long-term net leases which we account for as operating leases. Under this method, leases that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term. Certain leases also provide for additional rent based on tenants’ sales volumes. These rents are recognized when determinable after the tenant exceeds a sales breakpoint. Recognizing rent escalations on a straight-line method results in rental revenue in the early years of a lease being higher than actual cash received, creating a straight-line rent asset. Conversely, when actual cash collected is greater than the amount recognized on a straight-line basis, the difference is recognized as a liability. To the extent any of the tenants under these leases become unable to pay their contractual cash rents, the Company may be required to write down the straight-line rent receivable from those tenants, which would reduce rental income. Deferred rent asset as of September 30, 2021 and December 31, 2020 was approximately $ 145,400 126,700 185,800 188,600 The Company reviews the collectability of charges under its tenant operating leases on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. In the event that collectability exists with respect to any tenant changes, the Company recognizes an adjustment to rental income. The Company’s review of collectability of charges under its operating leases includes any accrued rental revenues related to the straight-line method of reporting rental revenue. There were no allowances for receivables recorded for the nine months ended September 30, 2021 or 2020. The Company’s leases provide for reimbursement from tenants for common area maintenance (“CAM”), insurance, real estate taxes and other operating expenses. A portion of our operating cost reimbursement revenue is estimated each period and is recognized as rental income in the period the recoverable costs are incurred and accrued. The Company often recognizes above- and below-market lease intangibles in connection with acquisitions of real estate. The capitalized above- and below-market lease intangibles are amortized over the |
Stock-Based Compensation | Stock-Based Compensation The Company records all equity-based incentive grants to employees and non-employee members of the Company’s Board of Directors in operating expenses in the Company’s Consolidated Statements of Operations based on their fair values determined on the date of grant. Stock-based compensation expense, reduced for estimated forfeitures, is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the outstanding equity awards. |
Real Estate | Real Estate Acquisitions of real estate are recorded at cost. Real Estate Purchase Price Assignment The Company assigns the purchase price of real estate to tangible and intangible assets and liabilities based on fair value. Tangible assets consist of land, buildings and tenant improvements. Intangible assets and liabilities consist of the value of in-place leases and above or below market leases assumed with the acquisition. The Company assessed whether the purchase of the building falls within the definition of a business under ASC 805 and concluded that all asset transactions were an asset acquisition, therefore it was recorded at the purchase price, including capitalized acquisition costs, which is allocated to land, building, tenant improvements and intangible assets and liabilities based upon their relative fair values at the date of acquisition. The fair value of the in-place lease is the estimated cost to replace the leases (including loss of rent, estimated commissions and legal fees paid in similar leases). The capitalized in-place leases are amortized over the remaining team of the leases as amortization expense. The fair value of the above or below market lease is the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the estimated current market lease rate expected over the remaining non-cancelable life of the lease. The capitalized above or below market lease values are amortized as a decrease or increase to rental income over the remaining term of the lease. For additional information, see Note 4 - Acquired Lease Intangible Asset, net and Note 5 - Acquired Lease Intangible Liability, net. |
Depreciation Expense | Depreciation Expense Real estate and related assets are stated net of accumulated depreciation. Renovations, replacements and other expenditures that improve or extend the life of assets are capitalized and depreciated over their estimated useful lives. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful life of the buildings, which are generally between 30 and 50 years, tenant improvements, which are generally between 2 and 10 years. |
Income Taxes | Income Taxes The Company intends to operate and be taxed as a real estate investment trust (“REIT”) under Section 856 through 860 of the Internal Revenue Code (“Code”), commencing with our taxable year ending December 31, 2021. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its taxable income to its stockholders. As a REIT, the Company generally will not be subject to federal corporate income tax on that portion of its taxable income that is currently distributed to stockholders. We account for deferred income taxes using the asset and liability method and recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our financial statements or tax returns. Under this method, we determine deferred tax assets and liabilities based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes us to change our judgment about expected future tax consequences of events, is included in the tax provision when such changes occur. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes us to change our judgment about the realizability of the related deferred tax asset, is included in the tax provision when such changes occur. The Company also recognizes liabilities for unrecognized tax benefits which are recognized if the weight of available evidence indicates that it is not more-likely-than-not that the positions will be sustained on examination, including resolution of the related processes, if any. As of each balance sheet date, unrecognized benefits are reassessed and adjusted if the Company’s judgement changes as a result of new information. |
Earnings per Share | Earnings per Share In accordance with ASC 260, basic earnings/loss per share (“EPS”) is computed by dividing net loss attributable to the Company that is available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of warrants), and convertible debt, using the if-converted method. Diluted EPS excludes all potentially dilutive securities such as warrants, options and restricted stock units if their effect is anti-dilutive. As of September 30, 2021 and December 31, 2020, all potentially dilutive securities were excluded because the effect was anti-dilutive. |
Impairments | Impairments The Company reviews real estate investments and related lease intangibles, for possible impairment when certain events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable though operations plus estimated disposition proceeds. Events or changes in circumstances that may occur include, but are not limited to, significant changes in real estate market conditions, estimated residual values, and an expectation to sell assets before the end of the previously estimated life. Impairments are measured to the extent the current book value exceeds the estimated fair value of the asset less disposition costs for any assets classified as held for sale. There were no impairments during the nine months ended September 30, 2021 or 2020. The valuation of impaired assets is determined using valuation techniques including discounted cash flow analysis, analysis of recent comparable sales transactions, and purchase offers received from third parties, which are Level 3 inputs. The Company may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate. Estimating future cash flows is highly subjective and estimates can differ materially from actual results. |
Deferred Financing Costs | Deferred Financing Costs As of September 30, 2021 and December 31, 2020, the Company incurred $1,261 thousand and $614 thousand of costs associated with the Company’s public equity raise that closed on September 8, 2021. The $1,261 thousand of deferred offering costs were reclassified to additional paid in capital in connection with the successful offering. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash | The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash that sums to the total of those amounts at the end of the periods presented on the Company’s accompanying Consolidated Statements of Cash Flows: September 30, December 31, 2021 2020 Cash and cash equivalents $14,194,639 $937,564 Restricted cash 34,500 184,800 Total cash and cash equivalents and restricted cash $14,229,139 $1,122,364 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of Investments in Real Estate | The Company’s real estate is comprised of the following: September 30, December 31, 2021 2020 Property $ 36,621,767 $ 37,352,447 Tenant improvements 482,701 482,701 Acquired lease intangible assets 2,949,411 3,014,149 Total 40,053,879 40,849,297 Less accumulated depreciation and amortization (3,168,841 ) (2,317,454 ) Total investments, net $ 36,885,038 $ 38,531,843 |
Schedule of Acquired Properties | During the nine-months ended September 30, 2021, the Company acquired two properties. Total Manteo, NC Plant City, FL Property $ 2,149,015 $ 1,635,824 $3,784,839 Acquired lease intangible assets 100,379 121,509 221,888 Total investments 2,249,394 1,757,333 4,006,727 Less acquired lease intangible liability 511,620 — 511,620 Total investments $ 1,737,774 $ 1,757,333 $3,495,107 |
Schedule of Disposed Properties | During the nine-months ended September 30, 2021, the Company sold one property. Cocoa Beach, FL Property $ 4,539,617 Acquired lease intangible assets 298,230 Total investments 4,837,847 Less accumulated depreciation and amortization (313,447) Less acquired lease intangible liability, net (202,650) Net book value of property upon sale $ 4,321,750 |
Acquired Lease Intangible Ass_2
Acquired Lease Intangible Asset, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net is comprised of the following: September 30, December 31, 2021 2020 Acquired lease intangible assets $ 2,949,411 $ 3,014,149 Accumulated amortization (896,918 ) (624,106 ) Acquired lease intangible assets, net $ 2,052,493 $ 2,390,043 |
Schedule of Future Amortization for Intangible Assets | The future amortization for intangible assets is listed below: As of September 30, 2021 2021 (three months) $104,000 2022 305,100 2023 305,100 2024 305,100 2025 305,100 Thereafter 728,100 $2,052,500 |
Acquired Lease Intangible Lia_2
Acquired Lease Intangible Liability, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Below Market Lease [Abstract] | |
Summary of Acquired Lease Intangible Liability | Acquired lease intangible liability is comprised of the following: September 30, December 31, 2021 2020 Acquired lease intangible liability $845,063 $585,792 Less: recognized rental income (236,366) (170,144) Total below market lease, net $608,697 $415,648 |
Summary of Future Amortization for Intangible Liabilities | The future amortization for intangible liabilities is listed below: As of September 30, 2021 2021 (three months) $31,300 2022 86,700 2023 86,700 2024 86,700 2025 86,700 Thereafter 230,600 $608,700 |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interests (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Summary of Redeemable Non-Controlling Interests | The following table reflects our Redeemable Non-Controlling Interests: Brown Family Trust Irby Prop Partners Hornstrom GIP Fund I Greenwal L.C. Riverside Crossing L.C. Total Balance, December 31, 2019 $1,200,000 $- $- $- $4,965,000 $2,033,251 $8,198,251 Distribution on Redeemable Non-Controlling Interest (20,375) - - - (86,887) (35,582) (142,844) Net income for the quarter 20,375 - - - 86,887 35,582 142,844 Balance, March 31, 2020 $1,200,000 $- $- $- $4,965,000 $2,033,251 $8,198,251 Distribution on Redeemable Non-Controlling Interest (39,851) - - - - - (39,851) Net income for the quarter 39,851 - - - - - 39,851 Balance, June 30, 2020 $1,200,000 $- $- $- $4,965,000 $2,033,251 $8,198,251 Distribution on Redeemable Non-Controlling Interest (29,553) - - - (86,888) (35,582) (152,023) Net income for the quarter 29,553 - - - 86,888 35,582 152,023 Balance, September 30, 2020 $1,200,000 $- $- $- $4,965,000 $2,033,251 $8,198,251 Balance, December 31, 2020 $1,200,000 $- $- $486,180 $4,965,000 $2,033,251 $8,684,431 Issuance of Redeemable Non-Controlling Interest for property acquisition 500,000 - - - - - 500,000 Distribution on Redeemable Non-Controlling Interest (37,104) - - - (33,041) (80,681) (150,826) Net income for the quarter 37,104 - - - 33,041 80,681 150,826 Balance, March 31, 2021 $1,700,000 $- $- $486,180 $4,965,000 $2,033,251 $9,184,431 Issuance of Redeemable Non-Controlling Interest for property acquisition - 950,000 - - - - 950,000 Distribution on Redeemable Non-Controlling Interest (41,125) (15,275) - (2,748) - - (59,148) Net income for the quarter 41,125 15,275 - 2,748 - - 59,148 Balance, June 30, 2021 $1,700,000 $950,000 $- $486,180 $4,965,000 $2,033,251 $10,134,431 Redemption of Redeemable Non-Controlling Interest for property disposal (1,200,000) - - - - - (1,200,000) Issuance of Redeemable Non-Controlling Interest for property acquisition - - 650,000 - - - 650,000 Distribution on Redeemable Non-Controlling Interest (31,399) (19,081) (6,838) (7,898) (33,040) (80,863) (179,119) Net income for the quarter 31,399 36,259 10,257 7,898 33,040 80,863 199,716 Balance, September 30, 2021 $500,000 $967,178 $653,419 $486,180 $4,965,000 $2,033,251 $9,605,028 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Warrants Issued and Outstanding with Exercise Price | Issue Date Warrants April 25, 2019 exercise price of $20.00 50,000 November 13, 2020 exercise price of $20.00 50,000 September 8, 2021 exercise price of $10.00 1,500,000 September 8, 2021 exercise price of $12.50 135,000 September 30, 2021 exercise price of $10.00 165,000 September 30, 2021 exercise price of $12.50 14,850 The following is a summary of warrants outstanding as of September 30: 2021 2020 Number of Warrants Weighted Average Price Weighted Average Remaining Life Number of Warrants Weighted Average Price Weighted Average Remaining Life Beginning of the year 100,000 $20.00 5.3 50,000 $20.00 6.3 Issuance 1,814,850 $10.21 5.0 - - - Ending balance 1,914,850 $10.72 4.97 50,000 $20.00 5.6 Warrants exercisable 1,765,000 $10.57 4.99 50,000 $20.00 5.6 |
Schedule of Restricted Common Shares Issued | Restricted Common Shares issued to the Board and Management 2021 2020 Number of Shares Outstanding at beginning of the period 14,582 5,000 Restricted Shares Issued 14,000 11,250 Restricted Shares Vested (5,415) (1,668) Number of Restricted Shares Outstanding at end of the period 23,167 14,582 Compensation expense $153,636 $74,338 |
Schedule of Cash Distributions | Common Shareholders Cash Distributions – Nine-Month Periods ended September 30, 2021 and 2020 Board of Directors Authorized Date Record Date Per Share Cash Total President August 25, 2021 August 31, 2021 $ 0.325 $ 116,307 39.0% February 26, 2021 March 15, 2021 $ 0.325 $ 114,373 39.0% June 23, 2020 July 2, 2020 $ 0.35 $ 105,084 42.8% January 31, 2020 February 28, 2020 $ 0.35 $ 105,101 42.8% * Our president and chairman waived his right to receive a dividend for all of these periods mentioned above. Operating Partnership Cash Distributions – Nine-Month Periods ended September 30, 2021 and 2020 Board of Directors Record Date Per Share Cash Total Dividends August 25, 2021 August 31, 2021 $ 0.325 $ 121,801 February 26, 2021 March 15, 2021 $ 0.325 $ 116,470 June 23, 2020 July 2, 2020 $ 0.35 $ 122,470 January 31, 2020 February 28, 2020 $ 0.35 $ 122,469 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Summary of Future Minimum Base Rental Cash Payments Due | The following table presents future minimum base rental cash payments due to the Company over the next five calendar years and thereafter as of September 30, 2021: Future Minimum Base Rent Payments 2021 (three months) $857,000 2022 3,443,000 2023 3,074,000 2024 3,078,000 2025 2,943,000 Thereafter 7,125,000 $20,520,000 |
Promissory Notes (Tables)
Promissory Notes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Promissory Notes | The Company had the following promissory notes outstanding as of September 30, 2021 and December 31, 2020, respectively: As of September 30, As of December 31, 2021 2020 Interest Rate Maturity Date Promissory note issued for $3,407,391 by a financial institution. Note was issued on September 11, 2019 and prepaid without penalty upon the sale of the Walgreen-Cocoa, Florida property on August 31, 2021 which was securing the note. 2.36% adjusted monthly based on 30 day LIBOR plus 225 basis points 9/11/2021 $- $3,407,391 Promissory note issued for $1,286,664 by a financial institution, interest and principal payments due monthly of approximately $3,800. Note was originally issued on January 15, 2015 and modified on November 30, 2020 and can be prepaid at any time without penalty. Secured by out Tampa Sherwin-Williams property. 3.72% fixed rate after using SWAP whereas the loan is LIBOR plus 2.75% 8/10/2028 1,286,664 1,286,664 Promissory note issued for $1,275,000 by a financial institution. Note was issued on February 4, 2021 and can be prepaid at any time without penalty. Secured by our GSA-Manteo, North Carolina property. 3.4% adjusted monthly based on 30 day Wall Street Journal Prime Rate with minimum of 3.25% 2/4/2023 1,275,000 - Promissory note issued for $850,000 by a financial institution. Note was issued on April 21, 2021 and can be prepaid at any time without penalty. Secured by our Irby - Plant City, FL property. 2.75% adjusted monthly based on 30 day Wall Street Journal Prime Rate minus 0.5% with minimum of 3.0% for first 24 months, then U.S. Treasury Securities Rate plus 2.75% with a minimum of 3.25% 12/31/2024 850,000 - Promissory note issued for $8,260,000 by a financial institution, interest and principal payments due monthly of approximately $41,500. Note was issued on September 30, 2019 and can be prepaid at any time without penalty. Secured by our GSA/Maersk - Norfolk, Virginia property. The interest rate was reduced in March 2021 from 4.25% to 3.5%. 3.50% 9/30/2024 7,861,426 8,022,271 Promissory note issued for $5,216,749 by a financial institution, interest and principal payments due monthly of approximately $27,400. Note was originally issued on October 23, 2017 and modified on September 30, 2019 and can be prepaid at any time without penalty. Secured by our PRA - Norfolk, Virginia property. The interest rate was reduced in March 2021 from 4.25% to 3.5%. 3.50% 10/23/2024 4,929,070 5,041,935 Promissory note issued for $1,900,000 to a Clearlake Preferred Member, secured by all of the personal and fixture property of the Operating Partnership, interest payments due monthly. Note was issued on December 16, 2019 and was prepaid without penalty on September 30, 2021. 10.00% 12/16/2021 - 1,100,000 Promissory note issued for $11,287,500 by a financial institution, interest only payment is approximately $39,000 and starting April 6, 2021, interest and principal payments due monthly of approximately $55,000. Note was issued on February 11, 2020. Secured by our Washington, DC, Tampa, FL and Huntsville, AL properties. It cannot be prepaid without a penalty 4.17% 3/6/2030 11,197,268 11,287,500 Less: debt issuance costs, net (633,647) (689,190) $26,765,781 $29,456,571 |
Schedule of Minimum Required Principal Payments | Minimum required principal payments on the Company’s debt as of September 30, 2021 are as follows: As of September 30, 2021 2021 (three months) $141,575 2022 580,740 2023 1,890,446 2024 12,982,315 2025 251,011 2026 and beyond 11,553,341 $27,399,428 |
Tenant in Common Investment (Ta
Tenant in Common Investment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Tenant In Common Investment [Abstract] | |
Condensed Income Statement of Tenant in Common Investment | The condensed income statement for the nine months ended September 30, 2021 for the Tenant in Common Investment is as follows: Total Company Portion Revenue $ 48,757 $ 17,943 Total operating expenses 35,862 13,193 Operating income $ 12,895 $ 4,750 |
Condensed Balance Sheet of Tenant in Common Investment | The condensed balance sheet as of September 30, 2021 for the Tenant in Common Investment is as follows: September 30, 2021 Property, net of depreciation $ 4,358,785 Prepaid expenses 1,088 Deferred rent asset 527 Acquired lease intangible asset, net of amortization 292,006 Due from tenant-in-common 39,257 Total assets $ 4,691,663 Mortgage payable net of unamortized debt issuance costs $ 2,671,742 Prepaid rent 29,900 Accrued expenses 5,877 Accounts payable - related party 4,726 Acquired lease intangible liability, net of amortization 44,860 Equity, GIP Inc. Tenant-in-common 717,337 Equity, Sunny Ridge Tenant-in-common 1,217,221 Total liabilities and equity $ 4,691,663 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Nature Of Operations [Line Items] | |
Entity incorporation date | Sep. 19, 2015 |
Operating Partnership | |
Nature Of Operations [Line Items] | |
Operating partnership formation month and year | 2015-10 |
Operating Partnership | Common Units | |
Nature Of Operations [Line Items] | |
Ownership percentage | 85.20% |
Operating Partnership | GIP REIT Op Limited LLC | |
Nature Of Operations [Line Items] | |
Ownership percentage | 0.002% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 14,194,639 | $ 937,564 |
Restricted cash | 34,500 | 184,800 |
Total cash and cash equivalents and restricted cash | $ 14,229,139 | $ 1,122,364 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred rent asset | $ 145,428 | $ 126,655 | |
Deferred rent liability | 185,805 | 188,595 | |
Prepaid rent | 149,400 | 165,800 | |
Impairments | 0 | $ 0 | |
Costs associated with public equity raise | 1,261,000 | $ 614,000 | |
Additional Paid-In- Capital | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Costs associated with public equity raise | $ 1,261,000 | ||
Buildings | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 30 years | ||
Buildings | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 50 years | ||
Tenant Improvements | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 2 years | ||
Tenant Improvements | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 10 years |
Investments in Real Estate - Sc
Investments in Real Estate - Schedule of Investments in Real Estate (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Real Estate Investments [Abstract] | ||
Property | $ 36,621,767 | $ 37,352,447 |
Tenant improvements | 482,701 | 482,701 |
Acquired lease intangible assets | 2,949,411 | 3,014,149 |
Total | 40,053,879 | 40,849,297 |
Less accumulated depreciation and amortization | (3,168,841) | (2,317,454) |
Total investments | $ 36,885,038 | $ 38,531,843 |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Details) | Aug. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Property | Sep. 30, 2020USD ($) |
Asset Acquisition [Line Items] | |||||
Depreciation | $ 273,300 | $ 261,300 | $ 833,291 | $ 776,070 | |
Number of real estate properties acquired | Property | 2 | ||||
Number of real estate properties sold | Property | 1 | ||||
Cocoa Beach, FL | |||||
Asset Acquisition [Line Items] | |||||
Sale of real estate property | $ 5,200,000 | ||||
Gain on disposition of real estate property | $ 923,000 | ||||
Manteo, NC | |||||
Asset Acquisition [Line Items] | |||||
Property acquired date | Feb. 11, 2021 | ||||
Cash capital contribution through issuance of redeemable non-controlling interest | $ 500,000 | ||||
Asset acquisition through debt | $ 1,275,000 | ||||
Plant City, FL | |||||
Asset Acquisition [Line Items] | |||||
Property acquired date | Apr. 21, 2021 | ||||
Cash capital contribution through issuance of redeemable non-controlling interest | $ 950,000 | ||||
Asset acquisition through debt | $ 850,000 |
Investments in Real Estate - _2
Investments in Real Estate - Schedule of Acquired Properties (Details) | Sep. 30, 2021USD ($) |
Business Acquisition [Line Items] | |
Property | $ 3,784,839 |
Acquired lease intangible assets | 221,888 |
Total investments | 4,006,727 |
Less acquired lease intangible liability | 511,620 |
Total investments | 3,495,107 |
Manteo, NC | |
Business Acquisition [Line Items] | |
Property | 2,149,015 |
Acquired lease intangible assets | 100,379 |
Total investments | 2,249,394 |
Less acquired lease intangible liability | 511,620 |
Total investments | 1,737,774 |
Plant City, FL | |
Business Acquisition [Line Items] | |
Property | 1,635,824 |
Acquired lease intangible assets | 121,509 |
Total investments | 1,757,333 |
Total investments | $ 1,757,333 |
Investments in Real Estate - _3
Investments in Real Estate - Schedule of Disposed Properties (Details) - Cocoa Beach, FL | Sep. 30, 2021USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Property | $ 4,539,617 |
Acquired lease intangible assets | 298,230 |
Total investments | 4,837,847 |
Less accumulated depreciation and amortization | (313,447) |
Less acquired lease intangible liability, net | (202,650) |
Net book value of property upon sale | $ 4,321,750 |
Acquired Lease Intangible Ass_3
Acquired Lease Intangible Asset, Net - Schedule of Intangible Assets, Net (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Acquired lease intangible assets | $ 2,949,411 | $ 3,014,149 |
Accumulated amortization | (896,918) | (624,106) |
Acquired lease intangible assets, net | $ 2,052,493 | $ 2,390,043 |
Acquired Lease Intangible Ass_4
Acquired Lease Intangible Asset, Net - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||||
Amortization of lease intangible assets | $ 114,800 | $ 102,600 | $ 331,500 | $ 307,800 |
Acquired Lease Intangible Ass_5
Acquired Lease Intangible Asset, Net - Schedule of Future Amortization for Intangible Assets (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
2021 (three months) | $ 104,000 | |
2022 | 305,100 | |
2023 | 305,100 | |
2024 | 305,100 | |
2025 | 305,100 | |
Thereafter | 728,100 | |
Acquired lease intangible assets, net | $ 2,052,493 | $ 2,390,043 |
Acquired Lease Intangible Lia_3
Acquired Lease Intangible Liability, Net - Summary of Acquired Lease Intangible Liability (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Below Market Lease [Abstract] | ||
Acquired lease intangible liability | $ 845,063 | $ 585,792 |
Less: recognized rental income | (236,366) | (170,144) |
Total below market lease, net | $ 608,697 | $ 415,648 |
Acquired Lease Intangible Lia_4
Acquired Lease Intangible Liability, Net - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Below Market Lease [Abstract] | ||||
Amortization for below market leases | $ 40,300 | $ 27,400 | $ 115,921 | $ 82,123 |
Acquired Lease Intangible Lia_5
Acquired Lease Intangible Liability, Net - Summary of Future Amortization for Intangible Liabilities (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Below Market Lease [Abstract] | ||
2021 (three months) | $ 31,300 | |
2022 | 86,700 | |
2023 | 86,700 | |
2024 | 86,700 | |
2025 | 86,700 | |
Thereafter | 230,600 | |
Total below market lease, net | $ 608,697 | $ 415,648 |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interests - Summary of Redeemable Non-Controlling Interests (Details) - USD ($) | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Redeemable Noncontrolling Interest [Line Items] | ||||||
Redeemable Non-Controlling Interest, Balance | $ 10,134,431 | $ 9,184,431 | $ 8,684,431 | $ 8,198,251 | $ 8,198,251 | $ 8,198,251 |
Redemption of Redeemable Non-Controlling Interest for property disposal | (1,200,000) | |||||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 650,000 | 950,000 | 500,000 | |||
Distribution on Redeemable Non-Controlling Interest | (179,119) | (59,148) | (150,826) | (152,023) | (39,851) | (142,844) |
Net income for the quarter | 199,716 | 59,148 | 150,826 | 152,023 | 39,851 | 142,844 |
Redeemable Non-Controlling Interest, Balance | 9,605,028 | 10,134,431 | 9,184,431 | 8,198,251 | 8,198,251 | 8,198,251 |
Brown Family Trust | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Redeemable Non-Controlling Interest, Balance | 1,700,000 | 1,700,000 | 1,200,000 | 1,200,000 | 1,200,000 | 1,200,000 |
Redemption of Redeemable Non-Controlling Interest for property disposal | (1,200,000) | |||||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 500,000 | |||||
Distribution on Redeemable Non-Controlling Interest | (31,399) | (41,125) | (37,104) | (29,553) | (39,851) | (20,375) |
Net income for the quarter | 31,399 | 41,125 | 37,104 | 29,553 | 39,851 | 20,375 |
Redeemable Non-Controlling Interest, Balance | 500,000 | 1,700,000 | 1,700,000 | 1,200,000 | 1,200,000 | 1,200,000 |
Irby Property Partners | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Redeemable Non-Controlling Interest, Balance | 950,000 | |||||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 950,000 | |||||
Distribution on Redeemable Non-Controlling Interest | (19,081) | (15,275) | ||||
Net income for the quarter | 36,259 | 15,275 | ||||
Redeemable Non-Controlling Interest, Balance | 967,178 | 950,000 | ||||
Hornstrom | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 650,000 | |||||
Distribution on Redeemable Non-Controlling Interest | (6,838) | |||||
Net income for the quarter | 10,257 | |||||
Redeemable Non-Controlling Interest, Balance | 653,419 | |||||
GIP Fund I | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Redeemable Non-Controlling Interest, Balance | 486,180 | 486,180 | 486,180 | |||
Distribution on Redeemable Non-Controlling Interest | (7,898) | (2,748) | ||||
Net income for the quarter | 7,898 | 2,748 | ||||
Redeemable Non-Controlling Interest, Balance | 486,180 | 486,180 | 486,180 | |||
Greenwal L.C. | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Redeemable Non-Controlling Interest, Balance | 4,965,000 | 4,965,000 | 4,965,000 | 4,965,000 | 4,965,000 | 4,965,000 |
Distribution on Redeemable Non-Controlling Interest | (33,040) | (33,041) | (86,888) | (86,887) | ||
Net income for the quarter | 33,040 | 33,041 | 86,888 | 86,887 | ||
Redeemable Non-Controlling Interest, Balance | 4,965,000 | 4,965,000 | 4,965,000 | 4,965,000 | 4,965,000 | 4,965,000 |
Riverside Crossing L.C. | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Redeemable Non-Controlling Interest, Balance | 2,033,251 | 2,033,251 | 2,033,251 | 2,033,251 | 2,033,251 | 2,033,251 |
Distribution on Redeemable Non-Controlling Interest | (80,863) | (80,681) | (35,582) | (35,582) | ||
Net income for the quarter | 80,863 | 80,681 | 35,582 | 35,582 | ||
Redeemable Non-Controlling Interest, Balance | $ 2,033,251 | $ 2,033,251 | $ 2,033,251 | $ 2,033,251 | $ 2,033,251 | $ 2,033,251 |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interests - Additional Information (Details) | Aug. 02, 2021USD ($) | Apr. 21, 2021USD ($) | Feb. 11, 2021USD ($) | Nov. 30, 2020USD ($)BuildingEntityInvestor$ / sharesshares | Sep. 30, 2019USD ($)BuildingEntityInvestor$ / sharesshares | Sep. 11, 2019USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Aug. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Acquisition of building | $ 4,006,727 | ||||||||||||||
Redeemable noncontrolling interest redeemed | 9,605,028 | $ 8,198,251 | $ 10,134,431 | $ 9,184,431 | $ 8,684,431 | $ 8,198,251 | $ 8,198,251 | $ 8,198,251 | |||||||
Preferred Equity Partners | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Payments of distributions | 34,000 | ||||||||||||||
Accrued value of deferred internal rate of return | 17,000 | ||||||||||||||
Brown Family Trust | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Redeemable noncontrolling interest redeemed | 500,000 | 1,200,000 | $ 1,200,000 | 1,700,000 | $ 1,700,000 | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 | ||||||
Payments of distributions | 110,000 | 90,000 | |||||||||||||
Irby Property Partners | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Redeemable noncontrolling interest redeemed | 967,178 | $ 950,000 | |||||||||||||
Hornstrom | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Redeemable noncontrolling interest redeemed | 653,419 | ||||||||||||||
Rockville, IL | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Payments of distributions | 7,000 | ||||||||||||||
Accrued value of deferred internal rate of return | 3,000 | ||||||||||||||
Redeemable Interests | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Payments of distributions | $ 238,000 | $ 245,000 | |||||||||||||
Preferred Equity Agreement | Brown Family Trust | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Capital contribution received | $ 500,000 | $ 1,200,000 | |||||||||||||
Noncontrolling interest, description | Pursuant to the agreement, the Company was required to pay the preferred equity member a 10% IRR on a monthly basis and redeem the entire amount due after 24 months at the option of the preferred equity member. | ||||||||||||||
Noncontrolling interest internal rate of return percentage paid on monthly basis | 9.00% | 10.00% | |||||||||||||
Current redemption amount | $ 500,000 | ||||||||||||||
Noncontrolling interest income allocated percentage | 100.00% | ||||||||||||||
Noncontrolling interest, description | Pursuant to the agreement, the Company will pay the preferred equity member a 9% IRR on a monthly basis and redeem the entire amount due after 24 months at the option of the preferred equity member. | ||||||||||||||
Preferred Equity Agreement | Irby Property Partners | Preferred Equity Partners | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Capital contribution received | $ 950,000 | ||||||||||||||
Noncontrolling interest, description | Pursuant to the agreement, the Company will pay the preferred equity member a 12% total IRR with an 8% IRR paid on a monthly basis and the deferred IRR will be paid at the end of 24 months along with the entire $950,000 amount due after 24 months at the option of the preferred equity member. | ||||||||||||||
Noncontrolling interest internal rate of return percentage paid on monthly basis | 8.00% | ||||||||||||||
Current redemption amount | $ 967,178 | ||||||||||||||
Noncontrolling interest income allocated percentage | 100.00% | ||||||||||||||
Noncontrolling interest total internal rate of return percentage | 12.00% | ||||||||||||||
Noncontrolling interest, amount due | $ 950,000 | ||||||||||||||
Preferred Equity Agreement | Hornstrom | Preferred Equity Partners | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Capital contribution received | $ 650,000 | ||||||||||||||
Noncontrolling interest internal rate of return percentage paid on monthly basis | 8.00% | ||||||||||||||
Current redemption amount | $ 653,419 | ||||||||||||||
Noncontrolling interest income allocated percentage | 100.00% | ||||||||||||||
Noncontrolling interest total internal rate of return percentage | 12.00% | ||||||||||||||
Noncontrolling interest, amount due | $ 650,000 | ||||||||||||||
Contribution Agreement | Operating Partnership | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Number of entities | Entity | 2 | ||||||||||||||
Number of common units issued | shares | 349,913 | ||||||||||||||
Common units issue price per share | $ / shares | $ 20 | ||||||||||||||
Common units value issued | $ 6,998,251 | ||||||||||||||
Percentage value of interest in common units | 13.80% | ||||||||||||||
Number of investors required to redeem | Investor | 2 | ||||||||||||||
Common units redemption price per share | $ / shares | $ 20 | ||||||||||||||
Contribution Agreement | One Entity | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Number of entities | Entity | 1 | ||||||||||||||
Number of common units issued | shares | 24,309 | ||||||||||||||
Common units issue price per share | $ / shares | $ 20 | ||||||||||||||
Common units value issued | $ 486,180 | ||||||||||||||
Percentage value of interest in common units | 1.00% | ||||||||||||||
Number of investors required to redeem | Investor | 2 | ||||||||||||||
Common units redemption price per share | $ / shares | $ 20 | ||||||||||||||
Cocoa, FL | Preferred Equity Agreement | Brown Family Trust | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Acquisition of building | $ 4,500,000 | ||||||||||||||
Manteo, NC | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Acquisition of building | $ 2,249,394 | ||||||||||||||
Capital contribution received | 500,000 | ||||||||||||||
Manteo, NC | Preferred Equity Agreement | Brown Family Trust | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Acquisition of building | $ 1,700,000 | ||||||||||||||
Plant City, FL | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Acquisition of building | 1,757,333 | ||||||||||||||
Capital contribution received | $ 950,000 | ||||||||||||||
Plant City, FL | Preferred Equity Agreement | Irby Property Partners | Preferred Equity Partners | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Acquisition of building | $ 1,700,000 | ||||||||||||||
Rockville, IL | Preferred Equity Agreement | Hornstrom | Preferred Equity Partners | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Acquisition of building | $ 700,000 | ||||||||||||||
Norfolk, VA | Contribution Agreement | Operating Partnership | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Acquisition of building | $ 18,600,000 | ||||||||||||||
Number of buildings acquired | Building | 2 | ||||||||||||||
Tampa, FL | Contribution Agreement | One Entity | |||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||||
Acquisition of building | $ 1,800,000 | ||||||||||||||
Number of buildings acquired | Building | 1 |
Equity - Additional Information
Equity - Additional Information (Details) | Sep. 30, 2021USD ($)TradingDayDirector$ / sharesshares | Sep. 08, 2021USD ($)$ / sharesshares | Nov. 13, 2020USD ($)$ / sharesshares | Feb. 03, 2020USD ($)Director$ / sharesshares | Jul. 15, 2019USD ($)Director$ / sharesshares | Apr. 25, 2019USD ($)$ / sharesshares | Sep. 30, 2021Director$ / sharesshares | Mar. 31, 2021$ / sharesshares | Feb. 28, 2021Directorshares | Jan. 31, 2021shares | Dec. 31, 2020USD ($)shares | Sep. 30, 2020shares | Sep. 30, 2021USD ($)Director$ / sharesshares | Sep. 30, 2021USD ($)Director$ / sharesshares | Sep. 30, 2020shares | Dec. 31, 2019shares |
Class Of Stock [Line Items] | ||||||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||
Undesignated preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||
Preferred stock, shares issued | 0 | 0 | 0 | 0 | ||||||||||||
Common stock issued amount | $ | $ 13,765,417 | |||||||||||||||
Number of warrants to purchase one share of common stock | 1 | 1 | ||||||||||||||
Common warrants exercisable price per share | $ / shares | $ 20 | $ 20 | ||||||||||||||
Common warrants expiration term | 4 years 11 months 19 days | 7 years | 7 years | 4 years 11 months 19 days | 5 years 3 months 18 days | 6 years 1 month 6 days | 4 years 11 months 19 days | 4 years 11 months 19 days | 6 years 1 month 6 days | 6 years 3 months 18 days | ||||||
Redeemable shares of common stock, value | $ | $ (100) | |||||||||||||||
Warrants to purchase shares of common stock | 1,765,000 | 1,765,000 | 50,000 | 1,765,000 | 1,765,000 | 50,000 | ||||||||||
Reclassification of deferred offering costs to additional paid in capital | $ | $ 1,300,000 | |||||||||||||||
Deferred financing costs | $ | $ 614,088 | |||||||||||||||
Warrants outstanding | 1,914,850 | 1,914,850 | 100,000 | 50,000 | 1,914,850 | 1,914,850 | 50,000 | 50,000 | ||||||||
Restricted Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Shares issued price per share | $ / shares | $ 20 | $ 20 | $ 20 | $ 20 | ||||||||||||
Number of shares granted | 14,000 | 14,000 | 11,250 | |||||||||||||
Vesting period | 3 years | |||||||||||||||
2020 Omnibus Incentive Plan | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of shares granted | 0 | |||||||||||||||
Reserves shares of common stock | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | ||||||||||||
Minimum | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common warrants expiration term | 5 years | 5 years | 5 years | 5 years | ||||||||||||
Maximum | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common warrants expiration term | 7 years | 7 years | 7 years | 7 years | ||||||||||||
Director | Unrestricted Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of shares granted | 1,666 | |||||||||||||||
Director | Shares Granted, July 15, 2019 | Restricted Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Shares issued price per share | $ / shares | $ 20 | |||||||||||||||
Number of shares granted | 2,500 | 1,666 | 1,668 | |||||||||||||
Number of independent directors granted shares | Director | 2 | |||||||||||||||
Vesting period | 12 months | |||||||||||||||
Award expiration period | 36 months | |||||||||||||||
Grant award value | $ | $ 50,000 | |||||||||||||||
Number of directors granted shares | Director | 2 | 2 | 2 | 2 | ||||||||||||
Director | Shares Granted, February 3, 2020 | Restricted Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Shares issued price per share | $ / shares | $ 20 | |||||||||||||||
Number of shares granted | 2,500 | 3,334 | ||||||||||||||
Number of independent directors granted shares | Director | 2 | |||||||||||||||
Vesting period | 12 months | |||||||||||||||
Award expiration period | 36 months | |||||||||||||||
Grant award value | $ | $ 50,000 | |||||||||||||||
Number of directors granted shares | Director | 2 | 2 | 2 | 2 | ||||||||||||
Director | Shares Granted, February 3, 2020 | Unrestricted Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of directors granted shares | Director | 2 | |||||||||||||||
Chief Financial Officer | Restricted Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Shares issued price per share | $ / shares | $ 20 | $ 20 | ||||||||||||||
Number of shares granted | 6,250 | 4,167 | ||||||||||||||
Vesting period | 12 months | |||||||||||||||
Award expiration period | 36 months | |||||||||||||||
Grant award value | $ | $ 125,000 | |||||||||||||||
Shares awarded per month for waiving right to cash compensation | 550 | 550 | 550 | 550 | ||||||||||||
Shares issued during the period | 2,200 | |||||||||||||||
Chief Financial Officer | Unrestricted Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of shares granted | 2,083 | |||||||||||||||
Public Offering | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of warrants to purchase one share of common stock | 1 | |||||||||||||||
Over-Allotment Option | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of warrants to purchase one share of common stock | 1 | 1 | 1 | 1 | ||||||||||||
Common warrants exercisable price per share | $ / shares | $ 12.50 | $ 12.50 | $ 12.50 | $ 12.50 | ||||||||||||
Common warrants expiration term | 5 years | 5 years | 5 years | 5 years | ||||||||||||
Percentage of shares underlying warrants that may be exercised based on trading price | 10.00% | |||||||||||||||
Shares underlying warrants that may be exercised based on trading price, period after issuance | 120 days | |||||||||||||||
Shares underlying warrants that may be exercised, number of trading days for calculation of trading price | TradingDay | 10 | |||||||||||||||
Warrants to purchase shares of common stock | 149,850 | 149,850 | 149,850 | 149,850 | ||||||||||||
Percentage of number of shares of common stock sold in offering | 9.00% | |||||||||||||||
Warrants to purchase shares of common stock, expiration date | Sep. 2, 2026 | Sep. 2, 2026 | Sep. 2, 2026 | Sep. 2, 2026 | ||||||||||||
Common Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common stock issued amount | $ | $ 1,000,000 | $ 1,000,000 | $ 16,650 | |||||||||||||
Common stock issued | 50,000 | 50,000 | 1,665,000 | |||||||||||||
Shares issued price per share | $ / shares | $ 20 | $ 20 | ||||||||||||||
Common Stock | Public Offering | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common stock issued amount | $ | $ 13,500,000 | |||||||||||||||
Common stock issued | 1,500,000 | |||||||||||||||
Shares issued price per share | $ / shares | $ 10 | |||||||||||||||
Common Stock | Over-Allotment Option | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common stock issued amount | $ | $ 1,500,000 | |||||||||||||||
Common stock issued | 165,000 | |||||||||||||||
Shares issued price per share | $ / shares | $ 10 | $ 10 | $ 10 | $ 10 | ||||||||||||
Treasury Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Redeemable shares of common stock, value | $ | $ (100) | |||||||||||||||
Treasury Stock | Public Offering | CEO | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Redeemable shares of common stock | 112,500 | |||||||||||||||
Redeemable shares of common stock, value | $ | $ 100 |
Equity - Schedule of Warrants I
Equity - Schedule of Warrants Issued with Exercise Price (Details) - $ / shares | Sep. 30, 2021 | Sep. 08, 2021 | Nov. 13, 2020 | Apr. 25, 2019 |
Class Of Warrant Or Right [Line Items] | ||||
Issue Date | Nov. 13, 2020 | Apr. 25, 2019 | ||
Exercise price | $ 20 | $ 20 | ||
Warrants Issued | 50,000 | 50,000 | ||
Exercise Price of $10.00 | ||||
Class Of Warrant Or Right [Line Items] | ||||
Issue Date | Sep. 30, 2021 | Sep. 8, 2021 | ||
Exercise price | $ 10 | $ 10 | ||
Warrants Issued | 165,000 | 1,500,000 | ||
Exercise Price of $12.50 | ||||
Class Of Warrant Or Right [Line Items] | ||||
Issue Date | Sep. 30, 2021 | Sep. 8, 2021 | ||
Exercise price | $ 12.50 | $ 12.50 | ||
Warrants Issued | 14,850 | 135,000 |
Equity - Summary of Warrants Ou
Equity - Summary of Warrants Outstanding (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | ||
Number of Warrants, Beginning balance | 100,000 | 50,000 |
Number of Warrants, Issuance | 1,814,850 | 0 |
Number of Warrants, Ending balance | 1,914,850 | 50,000 |
Number of Warrant Warrants exercisable | 1,765,000 | 50,000 |
Weighted Average Price, Beginning balance | $ 20 | $ 20 |
Weighted Average Price, Issuance | 10.21 | 0 |
Weighted Average Price, Ending balance | 10.72 | 20 |
Weighted Average Price, Warrants exercisable | $ 10.57 | $ 20 |
Weighted Average Remaining Life, Beginning balance | 5 years 3 months 18 days | 6 years 3 months 18 days |
Weighted Average Remaining Life, Issuance | 5 years | |
Weighted Average Remaining Life, Ending balance | 4 years 11 months 19 days | 6 years 1 month 6 days |
Weighted Average Remaining Life, Warrants exercisable | 4 years 11 months 26 days | 6 years 1 month 6 days |
Equity - Schedule of Restricted
Equity - Schedule of Restricted Common Shares Issued (Details) - Restricted Shares - USD ($) | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares Outstanding at beginning of the period | 14,582 | 5,000 | |
Restricted Shares Issued | 14,000 | 14,000 | 11,250 |
Restricted Shares Vested | (5,415) | (1,668) | |
Number of Restricted Shares Outstanding at end of the period | 23,167 | 23,167 | 14,582 |
Compensation expense | $ 153,636 | $ 74,338 |
Equity - Schedule of Cash Distr
Equity - Schedule of Cash Distributions (Details) - USD ($) | Aug. 25, 2021 | Feb. 26, 2021 | Jun. 23, 2020 | Jan. 31, 2020 |
Dividends Payable [Line Items] | ||||
Board of Directors Authorized Date | Aug. 25, 2021 | Feb. 26, 2021 | Jun. 23, 2020 | Jan. 31, 2020 |
Record Date | Aug. 31, 2021 | Mar. 15, 2021 | Jul. 2, 2020 | Feb. 28, 2020 |
Per Share Cash Dividend to Common Shareholders | $ 0.325 | $ 0.325 | $ 0.35 | $ 0.35 |
Total Dividends Paid | $ 116,307 | $ 114,373 | $ 105,084 | $ 105,101 |
Operating Partnership | ||||
Dividends Payable [Line Items] | ||||
Board of Directors Authorized Date | Aug. 25, 2021 | Feb. 26, 2021 | Jun. 23, 2020 | Jan. 31, 2020 |
Record Date | Aug. 31, 2021 | Mar. 15, 2021 | Jul. 2, 2020 | Feb. 28, 2020 |
Per Share Cash Dividend to Common Shareholders | $ 0.325 | $ 0.325 | $ 0.35 | $ 0.35 |
Total Dividends Paid | $ 121,801 | $ 116,470 | $ 122,470 | $ 122,469 |
David Sobelman | ||||
Dividends Payable [Line Items] | ||||
President Ownership at time of Distribution* | 39.00% | 39.00% | 42.80% | 42.80% |
Leases - Additional Information
Leases - Additional Information (Details) - Tenant | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Product Information [Line Items] | ||
Number of tenants | 4 | 4 |
Pratt And Whitney Corporation | Sales Revenue Net | Customer Concentration Risk | Huntsville, AL | Single Tenant Building | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 17.30% | 20.80% |
General Services Administration | Sales Revenue Net | Customer Concentration Risk | Norfolk, VA | Two-Tenant Office Building | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 22.90% | 26.20% |
PRA Holding | Sales Revenue Net | Customer Concentration Risk | Norfolk, VA | Single Tenant Building | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 19.90% | 22.70% |
Maersk Inc | Sales Revenue Net | Customer Concentration Risk | Norfolk, VA | Two-Tenant Office Building | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 10.20% | 11.10% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Base Rental Cash Payments Due (Details) | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
2021 (three months) | $ 857,000 |
2022 | 3,443,000 |
2023 | 3,074,000 |
2024 | 3,078,000 |
2025 | 2,943,000 |
Thereafter | 7,125,000 |
Total | $ 20,520,000 |
Promissory Notes - Schedule of
Promissory Notes - Schedule of Promissory Notes (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Less: debt issuance costs, net | $ (614,088) | ||
Promissory Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 27,399,428 | ||
Less: debt issuance costs, net | (633,647) | (689,190) | |
Long-term debt | $ 26,765,781 | 29,456,571 | |
Promissory Notes | Promissory Note Issued on September 11, 2019 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.36% | ||
Description of variable rate basis | 2.36% adjusted monthly based on 30 day LIBOR plus 225 basis points | ||
Maturity Date | Sep. 11, 2021 | ||
Long-term debt, gross | 3,407,391 | ||
Promissory Notes | Promissory Note Issued on September 11, 2019 | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 225.00% | ||
Promissory Notes | Promissory Note Issued on January 15, 2015 and Modified on November 30, 2020 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.72% | ||
Description of variable rate basis | 3.72% fixed rate after using SWAP whereas the loan is LIBOR plus 2.75% | ||
Maturity Date | Aug. 10, 2028 | ||
Long-term debt, gross | $ 1,286,664 | 1,286,664 | |
Promissory Notes | Promissory Note Issued on January 15, 2015 and Modified on November 30, 2020 | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.75% | ||
Promissory Notes | Promissory Note Issued on February 4, 2021 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.40% | ||
Description of variable rate basis | 3.4% adjusted monthly based on 30 day Wall Street Journal Prime Rate with minimum of 3.25% | ||
Maturity Date | Feb. 4, 2023 | ||
Long-term debt, gross | $ 1,275,000 | ||
Promissory Notes | Promissory Note Issued on February 4, 2021 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.25% | ||
Promissory Notes | Promissory Note Issued on April 21, 2021 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.75% | ||
Description of variable rate basis | 2.75% adjusted monthly based on 30 day Wall Street Journal Prime Rate minus 0.5% with minimum of 3.0% for first 24 months, then U.S. Treasury Securities Rate plus 2.75% with a minimum of 3.25% | ||
Maturity Date | Dec. 31, 2024 | ||
Long-term debt, gross | $ 850,000 | ||
Promissory Notes | Promissory Note Issued on April 21, 2021 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.00% | ||
Promissory Notes | Promissory Note Issued on April 21, 2021 | Prime Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Promissory Notes | Promissory Note Issued on April 21, 2021 | U.S. Treasury | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.75% | ||
Promissory Notes | Promissory Note Issued on April 21, 2021 | U.S. Treasury | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.25% | ||
Promissory Notes | Promissory Note Issued on September 30, 2019 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.25% | 3.50% | |
Maturity Date | Sep. 30, 2024 | ||
Long-term debt, gross | $ 7,861,426 | 8,022,271 | |
Promissory Notes | Promissory Note Issued on October 23, 2017 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.25% | 3.50% | |
Description of variable rate basis | 3.50% | ||
Maturity Date | Oct. 23, 2024 | ||
Long-term debt, gross | $ 4,929,070 | 5,041,935 | |
Promissory Notes | Promissory Note Issued on December 16, 2019 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 10.00% | ||
Maturity Date | Dec. 16, 2021 | ||
Long-term debt, gross | 1,100,000 | ||
Promissory Notes | Promissory Note Issued on February 11, 2020 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.17% | ||
Maturity Date | Mar. 6, 2030 | ||
Long-term debt, gross | $ 11,197,268 | $ 11,287,500 |
Promissory Notes - Schedule o_2
Promissory Notes - Schedule of Promissory Notes (Parenthetical) (Details) - Promissory Notes - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Mar. 31, 2021 | Apr. 05, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | |
Promissory Note Issued on September 11, 2019 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | $ 3,407,391 | $ 3,407,391 | ||
Interest rate | 2.36% | |||
Promissory Note Issued on January 15, 2015 and Modified on November 30, 2020 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | 1,286,664 | $ 1,286,664 | ||
Interest rate | 3.72% | |||
Interest and principal payment due | $ 3,800 | |||
Promissory Note Issued on February 4, 2021 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | 1,275,000 | $ 1,275,000 | ||
Interest rate | 3.40% | |||
Promissory Note Issued on April 21, 2021 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | 850,000 | $ 850,000 | ||
Interest rate | 2.75% | |||
Promissory Note Issued on September 30, 2019 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | 8,260,000 | $ 8,260,000 | ||
Interest rate | 4.25% | 3.50% | ||
Interest and principal payment due | $ 41,500 | |||
Promissory Note Issued on October 23, 2017 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | 5,216,749 | $ 5,216,749 | ||
Interest rate | 4.25% | 3.50% | ||
Interest and principal payment due | $ 27,400 | |||
Promissory Note Issued on December 16, 2019 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | 1,900,000 | $ 1,900,000 | ||
Interest rate | 10.00% | |||
Promissory Note Issued on February 11, 2020 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | 11,287,500 | $ 11,287,500 | ||
Interest rate | 4.17% | |||
Interest and principal payment due | $ 55,000 | |||
Interest rate | $ 39,000 |
Promissory Notes - Additional I
Promissory Notes - Additional Information (Details) - USD ($) | Jan. 31, 2021 | Feb. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||||
Amortization of debt issuance costs | $ 94,600 | $ 106,210 | |||||
Payments of debt issuance costs | 39,991 | 564,857 | |||||
Secured debt | $ 26,765,781 | 26,765,781 | $ 28,356,571 | ||||
Promissory Notes | |||||||
Debt Instrument [Line Items] | |||||||
Amortization of debt issuance costs | 30,700 | $ 28,400 | 94,600 | 106,200 | |||
Payments of debt issuance costs | 40,000 | $ 564,900 | |||||
Long-term debt | 26,765,781 | 26,765,781 | $ 29,456,571 | ||||
Secured debt | 14,600,000 | 14,600,000 | |||||
Promissory Notes | Nonrecourse | |||||||
Debt Instrument [Line Items] | |||||||
Secured debt | 12,800,000 | 12,800,000 | |||||
Promissory Notes | DC/Tampa/Huntsville Loan | |||||||
Debt Instrument [Line Items] | |||||||
Secured debt | 11,200,000 | 11,200,000 | |||||
Promissory Notes | Tampa Sherwin Williams Property | |||||||
Debt Instrument [Line Items] | |||||||
Secured debt | 1,300,000 | 1,300,000 | |||||
Promissory Notes | Irby Property | |||||||
Debt Instrument [Line Items] | |||||||
Secured debt | 900,000 | 900,000 | |||||
Promissory Notes | GSA Manteo NC Property | |||||||
Debt Instrument [Line Items] | |||||||
Secured debt | 1,300,000 | 1,300,000 | |||||
Promissory Notes | Promissory Notes Required 1.25 DSCR | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 24,000,000 | $ 24,000,000 | |||||
Debt service coverage ratios | 1.25% | 1.25% | |||||
Promissory Notes | Promissory Notes Required 1.20 DSCR | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,300,000 | $ 1,300,000 | |||||
Debt service coverage ratios | 1.20% | 1.20% | |||||
Promissory Notes | Promissory Notes Required 1.15 DSCR | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 900,000 | $ 900,000 | |||||
Debt service coverage ratios | 1.15% | 1.15% | |||||
Promissory Notes | Promissory Notes Required 1.30 DSCR | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,300,000 | $ 1,300,000 | |||||
Debt service coverage ratios | 1.30% | 1.30% | |||||
Promissory Notes | Bayport Loans | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.25% | 3.50% |
Promissory Notes - Schedule o_3
Promissory Notes - Schedule of Minimum Required Principal Payments (Details) - Promissory Notes | Sep. 30, 2021USD ($) |
Debt Instrument [Line Items] | |
2021 (three months) | $ 141,575 |
2022 | 580,740 |
2023 | 1,890,446 |
2024 | 12,982,315 |
2025 | 251,011 |
2026 and beyond | 11,553,341 |
Long-term debt, gross | $ 27,399,428 |
Related Party - Additional Info
Related Party - Additional Information (Details) | 9 Months Ended | |
Sep. 30, 2021Property | Sep. 30, 2020USD ($)Property | |
Related Party Transaction [Line Items] | ||
Number of properties | Property | 3 | 3 |
Agreement termination effective date | Aug. 31, 2020 | |
Payment for asset management services related to properties owned | $ | $ 40,135 | |
CEO | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership owned | 100.00% |
Tenant in Common Investment - A
Tenant in Common Investment - Additional Information (Details) | Aug. 13, 2021USD ($)ft²Tenant | Sep. 30, 2021Tenant | Sep. 30, 2020Tenant |
Tenant In Common Investment [Line Items] | |||
Number of tenants | Tenant | 4 | 4 | |
Rockford, IL | |||
Tenant In Common Investment [Line Items] | |||
Area of property | ft² | 15,288 | ||
Number of tenants | Tenant | 1 | ||
Asset acquisition, total consideration costs | $ 4,500,000 | ||
Asset acquisition with redeemable non controlling interest contribution | 650,000 | ||
Debt financing | 2,700,000 | ||
Redeemable noncontrolling interest, equity, common, fair value | 600,000 | ||
Redeemable noncontrolling interest, equity, fair value | 950,000 | ||
Equity method investments | 717,000 | ||
Issuance of promissory note for property acquisition | $ 2,715,000 | ||
Promissory note issuance date | Aug. 13, 2021 | ||
Debt | $ 1,000,000 | ||
Loan repayment guaranteed by president | $ 2,700,000 | ||
Debt instrument, covenant description | The loan has normal covenants which includes DSCR 1.50:1.0. | ||
DSCR | 150.00% | ||
Sunny Ridge | Rockford, IL | |||
Tenant In Common Investment [Line Items] | |||
Ownership percentage | 36.80% | ||
Remainder of purchase price of property funded | $ 1,200,000 | ||
Sunny Ridge | Rockford, IL | Richard Hornstrom | |||
Tenant In Common Investment [Line Items] | |||
Ownership percentage | 50.00% |
Tenant in Common Investment - C
Tenant in Common Investment - Condensed Income Statement of Tenant in Common Investment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Tenant in Common Investment [Line Items] | ||||
Total revenue | $ 1,033,494 | $ 871,825 | $ 2,958,572 | $ 2,630,067 |
Total operating expenses | 1,305,594 | 1,275,028 | 3,870,040 | 3,627,182 |
Operating income | $ (272,100) | $ (403,203) | (911,468) | $ (997,115) |
Tenancy In Common | ||||
Tenant in Common Investment [Line Items] | ||||
Total revenue | 48,757 | |||
Total operating expenses | 35,862 | |||
Operating income | 12,895 | |||
Tenancy In Common | Company Portion | ||||
Tenant in Common Investment [Line Items] | ||||
Total revenue | 17,943 | |||
Total operating expenses | 13,193 | |||
Operating income | $ 4,750 |
Tenant in Common Investment -_2
Tenant in Common Investment - Condensed Balance Sheet of Tenant in Common Investment (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Tenant in Common Investment [Line Items] | ||
Property, net of depreciation | $ 36,885,038 | $ 38,531,843 |
Prepaid expenses | 220,652 | 134,165 |
Deferred rent asset | 145,428 | 126,655 |
Intangible asset, net of amortization | 2,052,493 | 2,390,043 |
Total Assets | 52,408,808 | 40,680,740 |
Mortgage payable net of unamortized debt issuance costs | 26,765,781 | 28,356,571 |
Accrued expenses | 278,581 | 406,125 |
Accounts payable - related party | 100 | |
Acquired lease intangible liability, net of amortization | 608,697 | 415,648 |
Equity | 14,709,082 | 1,370,039 |
Total Liabilities and Stockholders' Equity | 52,408,808 | $ 40,680,740 |
Tenancy In Common | ||
Tenant in Common Investment [Line Items] | ||
Property, net of depreciation | 4,358,785 | |
Prepaid expenses | 1,088 | |
Deferred rent asset | 527 | |
Due from tenant-in-common | 39,257 | |
Total Assets | 4,691,663 | |
Mortgage payable net of unamortized debt issuance costs | 2,671,742 | |
Prepaid rent | 29,900 | |
Accrued expenses | 5,877 | |
Accounts payable - related party | 4,726 | |
Acquired lease intangible liability, net of amortization | 44,860 | |
Total Liabilities and Stockholders' Equity | 4,691,663 | |
Tenancy In Common | Acquired Lease | ||
Tenant in Common Investment [Line Items] | ||
Intangible asset, net of amortization | 292,006 | |
Tenancy In Common | GIP Inc. | ||
Tenant in Common Investment [Line Items] | ||
Equity | 717,337 | |
Tenancy In Common | Sunny Ridge | ||
Tenant in Common Investment [Line Items] | ||
Equity | $ 1,217,221 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) | Nov. 11, 2021USD ($)ft²Tenant | Oct. 28, 2021USD ($)ft² | Oct. 27, 2021USD ($)ft² | Oct. 26, 2021USD ($) | Oct. 11, 2021USD ($)ft² | Oct. 06, 2021$ / shares | Oct. 05, 2021USD ($)shares | Aug. 25, 2021 | Feb. 26, 2021 | Jun. 23, 2020 | Jan. 31, 2020 | Sep. 30, 2021Tenant | Sep. 30, 2020Tenant |
Subsequent Event [Line Items] | |||||||||||||
Number of tenants | Tenant | 4 | 4 | |||||||||||
Board of Directors Authorized Date | Aug. 25, 2021 | Feb. 26, 2021 | Jun. 23, 2020 | Jan. 31, 2020 | |||||||||
Record Date | Aug. 31, 2021 | Mar. 15, 2021 | Jul. 2, 2020 | Feb. 28, 2020 | |||||||||
Subsequent Event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Board of Directors Authorized Date | Oct. 5, 2021 | ||||||||||||
Subsequent Event | GIP LP | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Dividends payable, amount per share | $ / shares | $ 0.054 | ||||||||||||
Subsequent Event | Dividend Tranche One | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Dividends payable, amount per share | $ / shares | $ 0.054 | ||||||||||||
Record Date | Oct. 15, 2021 | ||||||||||||
Dividends payable, date to be paid | Oct. 30, 2021 | ||||||||||||
Subsequent Event | Dividend Tranche Two | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Dividends payable, amount per share | $ / shares | $ 0.054 | ||||||||||||
Record Date | Nov. 15, 2021 | ||||||||||||
Dividends payable, date to be paid | Nov. 30, 2021 | ||||||||||||
Subsequent Event | Dividend Tranche Three | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Dividends payable, amount per share | $ / shares | $ 0.054 | ||||||||||||
Record Date | Dec. 31, 2015 | ||||||||||||
Dividends payable, date to be paid | Dec. 30, 2021 | ||||||||||||
Subsequent Event | Contribution and Subscription Agreement | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Proceeds from issuance of operating partnership units | $ 1,100,000 | ||||||||||||
Proceeds from issuance of debt | $ 1,100,000 | ||||||||||||
Subsequent Event | Commitment Letter | American Momentum Bank | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Line of credit, maximum borrowing capacity | $ 25,000,000 | ||||||||||||
Line of credit, commitment fee | 0.50% | ||||||||||||
Interest-only payment term of loan | 24 months | ||||||||||||
Loan term | 2 years | ||||||||||||
Minimum debt service coverage ratio to be maintained by borrower | 1.50 | ||||||||||||
Loan term after closing date initial loan | 2 years | ||||||||||||
Subsequent Event | Commitment Letter | Floor Rate | American Momentum Bank | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Line of credit, interest rate | 3.25% | ||||||||||||
Subsequent Event | Commitment Letter | Initial Loan | American Momentum Bank | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Loan expiration date | Dec. 31, 2021 | ||||||||||||
Plant City F L | Subsequent Event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Bonus shares | shares | 10,000 | ||||||||||||
Cash bonus interest contribution | $ 125,000 | ||||||||||||
Retail Building | Subsequent Event | Purchase and Sale Agreement | Grand Junction, Colorado | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Area of property | ft² | 30,000 | ||||||||||||
Asset acquisition, total consideration costs | $ 4,700,000 | ||||||||||||
Remaining lease term of property | 5 years 6 months | ||||||||||||
Lease annualized base rent | $ 353,000 | ||||||||||||
Retail Building | Subsequent Event | Purchase and Sale Agreement | Chicago, Illinois | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Area of property | ft² | 11,000 | ||||||||||||
Asset acquisition, total consideration costs | $ 3,100,000 | ||||||||||||
Remaining lease term of property | 5 years | ||||||||||||
Lease annualized base rent | $ 224,000 | ||||||||||||
Retail Building | Subsequent Event | Purchase and Sale Agreement | Austin and San Marcos Texas | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Area of property | ft² | 12,900 | ||||||||||||
Asset acquisition, total consideration costs | $ 8,000,000 | ||||||||||||
Lease annualized base rent | $ 1,100,000 | ||||||||||||
Number of tenants | Tenant | 3 | ||||||||||||
Retail Building | Subsequent Event | Purchase and Sale Agreement | Austin and San Marcos Texas | Initial Leasehold | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Remaining lease term of property | 9 years | ||||||||||||
Retail Building | Subsequent Event | Purchase and Sale Agreement | Austin and San Marcos Texas | Initial Ground Lease | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Remaining lease term of property | 4 years | ||||||||||||
Lease annualized base rent | $ 511,000 | ||||||||||||
Retail Building | Subsequent Event | Contribution and Subscription Agreement | Tampa, Florida | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Area of property | ft² | 2,600 | ||||||||||||
Asset acquisition, total consideration costs | $ 2,200,000 | ||||||||||||
Remaining lease term of property | 6 months | ||||||||||||
Lease annualized base rent | $ 135,000 |