Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 22, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 000-54376 | ||
Entity Registrant Name | STRATEGIC REALTY TRUST, INC. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 90-0413866 | ||
Entity Address, Address Line One | P.O. Box 5049 | ||
Entity Address, City or Town | San Mateo, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94402 | ||
City Area Code | 650 | ||
Local Phone Number | 343-9300 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 10,739,814 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001446371 | ||
Current Fiscal Year End Date | --12-31 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments in real estate | |||
Land | $ 25,400 | $ 13,536 | |
Building and improvements | 32,165 | 23,732 | |
Tenant improvements | 2,199 | 1,264 | |
Real Estate Investment Property, at Cost | 59,764 | 38,532 | |
Accumulated depreciation | (3,797) | (3,308) | |
Investments in real estate, net | 55,967 | 35,224 | |
Properties under development and development costs | |||
Land | 12,958 | 25,851 | |
Buildings | 0 | 554 | |
Development costs | 2,441 | 20,813 | |
Properties under development and development costs | 15,399 | 47,218 | |
Cash, cash equivalents and restricted cash | 2,622 | 7,241 | |
Prepaid expenses and other assets, net | 106 | 114 | |
Tenant receivables, net of $708 and $14 bad debt reserve | 566 | 727 | |
Total | 1,176 | 1,321 | |
Assets held for sale | 3,224 | 9,216 | |
Deferred financing costs, net | 0 | 105 | |
Total assets | [1] | 79,060 | 101,166 |
LIABILITIES | |||
Notes payable, net | 38,339 | 33,927 | |
Accounts payable and accrued expenses | 674 | 2,404 | |
Amounts due to affiliates | 11 | 140 | |
Other liabilities | 134 | 180 | |
Liabilities related to assets held for sale | 0 | 8,939 | |
Below-market lease liabilities, net | 247 | 296 | |
TOTAL LIABILITIES (1) | [1] | 39,405 | 45,886 |
Commitments and contingencies (Note 12) | |||
EQUITY | |||
Preferred stock, $0.01 par value; 50,000,000 shares authorized, none issued and outstanding | 0 | 0 | |
Common stock, $0.01 par value; 400,000,000 shares authorized; 10,739,814 and 10,759,721 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 110 | 110 | |
Additional paid-in capital | 94,602 | 94,719 | |
Accumulated deficit | (55,771) | (40,571) | |
Total stockholders’ equity | 38,941 | 54,258 | |
Non-controlling interests | 714 | 1,022 | |
TOTAL EQUITY | 39,655 | 55,280 | |
TOTAL LIABILITIES AND EQUITY | 79,060 | 101,166 | |
Bad debt reserve | 708 | 14 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Investments in real estate | |||
Land | 13,026 | 0 | |
Building and improvements | 10,624 | 0 | |
Tenant improvements | 547 | 0 | |
Real Estate Investment Property, at Cost | 24,197 | 0 | |
Accumulated depreciation | (209) | 0 | |
Investments in real estate, net | 23,988 | 0 | |
Properties under development and development costs | |||
Land | 12,958 | 25,851 | |
Buildings | 0 | 554 | |
Development costs | 2,441 | 20,813 | |
Properties under development and development costs | 15,399 | 47,218 | |
Cash, cash equivalents and restricted cash | 340 | 2,154 | |
Prepaid expenses and other assets, net | 11 | 7 | |
Total | 73 | 4 | |
Total assets | [2] | 39,811 | 49,383 |
LIABILITIES | |||
Notes payable, net | [3] | 20,868 | 16,713 |
Accounts payable and accrued expenses | 212 | 1,702 | |
Amounts due to affiliates | 0 | 111 | |
Other liabilities | 33 | 5 | |
TOTAL LIABILITIES (1) | $ 21,113 | $ 18,531 | |
[1] | As of December 31, 2020 and December 31, 2019, includes approximately $39.8 million and $49.4 million, respectively, of assets related to consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities and approximately $21.1 million and $18.5 million, respectively, of liabilities of consolidated variable interest entities for which creditors do not have recourse to the general credit of the Company. Refer to Note 4. “Variable Interest Entities”. | ||
[2] | The assets of the Sunset & Gardner Joint Venture and Wilshire Joint Venture can be used only to settle obligations of the respective consolidated joint ventures. | ||
[3] | As of December 31, 2020 and 2019, includes reclassification of approximately $0.3 million and $0.5 million, respectively, of deferred financing costs, net, as a contra-liability. The creditors of the consolidated joint ventures do not have recourse to the general credit of the Company. The notes payable of the Wilshire Joint Venture is partially guaranteed by the Company, refer to Note 7, “Notes Payable, Net”. The notes payable of the Sunset & Gardner Joint Venture is not guaranteed by the Company. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 10,739,814 | 10,759,721 |
Common stock, shares outstanding | 10,739,814 | 10,759,721 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | ||
Rental and reimbursements | $ 2,632 | $ 3,892 |
Expense: | ||
Operating and maintenance | 1,841 | 1,450 |
General and administrative | 1,652 | 1,681 |
Depreciation and amortization | 1,381 | 1,390 |
Transaction expense | 0 | 2 |
Interest expense | 785 | 667 |
Loss on impairment of real estate and property under development | 13,383 | 0 |
Total expense | 19,042 | 5,190 |
Operating loss | (16,410) | (1,298) |
Other income: | ||
Equity in income of unconsolidated joint ventures | 0 | 27 |
Net gain on sale of unconsolidated joint venture interests | 0 | 1,417 |
Net gain on disposal of real estate | 947 | 13 |
Income (loss) before income taxes | (15,463) | 159 |
Income taxes | (45) | (21) |
Net income (loss) | (15,508) | 138 |
Net income (loss) attributable to non-controlling interests | (308) | 3 |
Net income (loss) attributable to common shares | $ (15,200) | $ 135 |
Earnings (loss) per common share - basic and diluted | $ (1.41) | $ 0.01 |
Weighted average shares outstanding used to calculate earnings (loss) per common share - basic and diluted | 10,744,570 | 10,818,686 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | Non-controlling Interests |
BALANCE at Dec. 31, 2018 | $ 58,070,000 | $ 110,000 | $ 95,336,000 | $ (38,546,000) | $ 56,900,000 | $ 1,170,000 |
BALANCE (in shares) at Dec. 31, 2018 | 10,863,299 | |||||
Stock Issued During Period, Shares, Conversion of Units | 17,719 | |||||
Stock Issued During Period, Value, Conversion of Units | 0 | $ 0 | 105,000 | 0 | 105,000 | (105,000) |
Redemption of common shares (in shares) | (121,297) | |||||
Redemption of common shares, value | (722,000) | $ 0 | (722,000) | 0 | (722,000) | 0 |
Stock Dividends, Shares | 0 | |||||
Quarterly distributions | (2,206,000) | $ 0 | 0 | (2,160,000) | (2,160,000) | (46,000) |
Net income (loss) | 138,000 | 0 | 0 | 135,000 | 135,000 | 3,000 |
BALANCE at Dec. 31, 2019 | 55,280,000 | $ 110,000 | 94,719,000 | (40,571,000) | 54,258,000 | 1,022,000 |
BALANCE (in shares) at Dec. 31, 2019 | 10,759,721 | |||||
Redemption of common shares (in shares) | (19,907) | |||||
Redemption of common shares, value | (117,000) | $ 0 | (117,000) | 0 | (117,000) | 0 |
Net income (loss) | (15,508,000) | 0 | 0 | (15,200,000) | (15,200,000) | (308,000) |
BALANCE at Dec. 31, 2020 | $ 39,655,000 | $ 110,000 | $ 94,602,000 | $ (55,771,000) | $ 38,941,000 | $ 714,000 |
BALANCE (in shares) at Dec. 31, 2020 | 10,739,814 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (15,508) | $ 138 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Net gain on disposal of real estate | (947) | (13) |
Net gain on sale of joint venture interests | 0 | (1,417) |
Loss on impairment of real estate and property under development | 13,383 | 0 |
Equity in income of unconsolidated joint ventures | 0 | 27 |
Straight-line rent | 121 | (98) |
Amortization of deferred costs | 431 | 631 |
Depreciation and amortization | 1,381 | 1,390 |
Amortization of above and below-market leases | (40) | (23) |
Provision for losses on tenant receivable | 674 | 282 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | 8 | 23 |
Tenant receivables | (629) | 65 |
Accounts payable and accrued expenses | 6 | (62) |
Amounts due to affiliates | (129) | 110 |
Other liabilities | (46) | (195) |
Net cash provided by (used in) operating activities | (1,295) | 804 |
Cash flows from investing activities: | ||
Proceeds from the sale of real estate | 9,920 | 13 |
Net proceeds from sale of unconsolidated joint venture interests | 0 | 4,150 |
Investment in properties under development and development costs | (6,926) | (4,884) |
Improvements, capital expenditures, and leasing costs | (889) | (709) |
Investments in unconsolidated joint ventures | 0 | (38) |
Distributions from unconsolidated joint ventures | 0 | 33 |
Net cash provided by (used in) investing activities | 2,105 | (1,435) |
Cash flows from financing activities: | ||
Redemption of common shares | (117) | (722) |
Quarterly distributions | (220) | (2,652) |
Proceeds from notes payable | 4,015 | 39,545 |
Repayment of notes payable | (8,927) | (30,244) |
Payment of loan fees from investments in consolidated variable interest entities | (174) | (617) |
Payment of loan fees and financing costs | (6) | (785) |
Net cash provided by (used in) financing activities | (5,429) | 4,525 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (4,619) | 3,894 |
Cash, cash equivalents and restricted cash – beginning of period | 7,241 | 3,347 |
Cash, cash equivalents and restricted cash – end of period | 2,622 | 7,241 |
Supplemental disclosure of non-cash investing and financing activities and other cash flow information: | ||
Distributions declared but not paid | 0 | 220 |
Change in accrued liabilities capitalized to investment in development | (1,629) | 1,692 |
Change to accrued mortgage note payable interest capitalized to investment in development | 30 | (11) |
Amortization of deferred loan fees capitalized to investment in development | 251 | 419 |
Conversion of OP units to common shares | 0 | 105 |
Changes in capital improvements, accrued but not paid | 83 | 7 |
Cash paid for interest, net of amounts capitalized | $ 346 | $ 86 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS | ORGANIZATION AND BUSINESS Strategic Realty Trust, Inc. (the “Company”) was formed on September 18, 2008, as a Maryland corporation. Effective August 22, 2013, the Company changed its name from TNP Strategic Retail Trust, Inc. to Strategic Realty Trust, Inc. The Company believes it qualifies as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), and has elected REIT status beginning with the taxable year ended December 31, 2009, the year in which the Company began material operations. Since the Company’s inception, its business has been managed by an external advisor. The Company has no direct employees and all management and administrative personnel responsible for conducting the Company’s business are employed by its advisor. Currently, the Company is externally managed and advised by SRT Advisor, LLC, a Delaware limited liability company (the “Advisor”) pursuant to an advisory agreement with the Advisor (the “Advisory Agreement”) initially executed on August 10, 2013, and subsequently renewed every year through 2021. The current term of the Advisory Agreement terminates on August 9, 2021. The Advisor is an affiliate of Glenborough, LLC (together with its affiliates, “Glenborough”), a privately held full-service real estate investment and management company focused on the acquisition, management and leasing of commercial properties. Substantially all of the Company’s business is conducted through Strategic Realty Operating Partnership, L.P. (the “OP”). During the Company’s initial public offering (“Offering”), as the Company accepted subscriptions for shares of its common stock, it transferred substantially all of the net proceeds of the Offering to the OP as a capital contribution. The Company is the sole general partner of the OP. As of December 31, 2020 and 2019, the Company owned 98.0% of the limited partnership interests in the OP. The Company’s principal demand for funds has been for the acquisition of real estate assets, the payment of operating expenses, interest on outstanding indebtedness, the payment of distributions to stockholders, and investments in development of properties. Substantially all of the proceeds of the completed Offering have been used to fund investments in real properties and other real estate-related assets, for payment of operating expenses, for payment of interest, for payment of various fees and expenses, such as acquisition fees and management fees, and for payment of distributions to stockholders. The Company’s available capital resources, cash and cash equivalents on hand and sources of liquidity are currently limited. The Company expects its future cash needs will be funded using cash from operations, future asset sales, debt financing and the proceeds to the Company from any sale of equity that it may conduct in the future. The Company invests in and manages a portfolio of income-producing retail properties, located in the United States, real estate-owning entities and real estate-related assets. The Company has invested directly, and indirectly through joint ventures, in a portfolio of income-producing retail properties located throughout the United States, with a focus on multi-tenant retail centers, including neighborhood, community and lifestyle shopping centers, multi-tenant shopping centers and free standing single-tenant retail properties. During the first quarter of 2016, the Company invested, through joint ventures, in two significant retail projects under development. During the third quarter of 2020, construction of one of the development projects was substantially completed. As of December 31, 2020, this property had approximately 12,000 rentable square feet of retail space, which was 62% leased. As of December 31, 2020, in addition to one development project and the property recently placed in service, the Company’s portfolio of wholly-owned properties was comprised of 7 properties, including one property held for sale, with approximately 43,000 rentable square feet of retail space located in two states, as well as an improved land parcel. As of December 31, 2020, the rentable space at the Company’s retail properties was 79% leased. COVID-19 Pandemic Currently, a material risk and uncertainty facing the Company, the retail industry, the real estate industry and the economy generally is the adverse effect of the ongoing public health crisis of the novel coronavirus disease (COVID-19) pandemic. The Company continues to monitor the impact of the COVID-19 pandemic on all aspects of its business, including how the pandemic is impacting its tenants and business partners. Many of the Company’s tenants have requested rent deferral or rent abatement as a result of the pandemic. During the year ended December 31, 2020, some of the tenants, that had requested rent relief, resumed paying full or partial rent, as some restrictions have been partially lifted. As such, the Company is unable to predict the full impact that the pandemic will have on its financial condition, results of operations and cash flows. The full extent to which the COVID-19 pandemic impacts the Company’s operations and those of its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. Historically, the Company’s cash flows have been primarily funded by cash provided by property operations, the sales of properties and the sale of shares of the Company’s common stock. The COVID-19 pandemic has had a material detrimental impact on our liquidity. As of December 31, 2020, the Company had approximately $1.8 million in cash and cash equivalents. In addition, the Company had approximately $0.8 million of restricted cash (funds held by the lenders for property taxes, insurance, tenant improvements, leasing commissions, capital expenditures, rollover reserves and other financing needs). The Company has taken several steps to preserve capital and increase liquidity, such as: • On March 27, 2020, the Board decided to suspend the payment of any dividend for the quarter ending March 31, 2020, and will reconsider future dividend payments on a quarter by quarter basis as more information becomes available on the impact of COVID-19 and related impact to the Company. Dividend payments were not reinstated as of December 31, 2020. • Effective May 21, 2020, the Company suspended its Amended and Restated Share Redemption Program (the “SRP). The SRP will remain suspended and no further redemptions will be made unless and until the Company’s board of directors (the “Board”) approves the resumption of the SRP. • Furthermore, the Shops at Turkey Creek remains unencumbered by debt and is available for financing to provide funds for the Company, if needed. Refer to Note 13, “Subsequent Events” for discussion around a Standby Loan Commitment executed between the Company and Glenborough Property Partners, LLC, an affiliate of the Company’s Advisor. Additionally, during the quarter ended December 31, 2020, Shops at Turkey Creek was listed for sale. Refer to Note 3, “Real Estate Investments” for additional information. The Company remains in compliance with all the terms of the Wilshire Construction Loan (as defined below), which matures on May 10, 2022 with the options to extend for two additional twelve-month periods, subject to certain conditions. Similarly, the Company remains in compliance with the Sunset & Gardner Loan (as defined below), which matures on October 21, 2021. The Company fully paid off the revolving line of credit with the SRT Loan (as defined below) from PFP Holding Company, LLC (the “SRT Lender”). The SRT Loan is secured by six of the Company’s core urban properties in Los Angeles and San Francisco. The SRT Loan does not have the sort of restrictive covenants and ongoing debt coverage ratios that could trigger a default caused by tenants not paying rent or seeking rent relief (unlike the former line of credit). The Company is in constant communication with its tenants and is assisting tenants in identifying local, state and federal resources that may be available to support their businesses and employees during the pandemic, including stimulus funds that may be available under the Coronavirus Aid, Relief, and Economic Security Act of 2020. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-K and Regulation S-X. The consolidated financial statements include the accounts of the Company, the OP, their direct and indirect owned subsidiaries, and the accounts of joint ventures that are determined to be variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows have been included. The Company evaluates the need to consolidate joint ventures and variable interest entities based on standards set forth in ASC Topic 810, Consolidation (“ASC 810”). In determining whether the Company has a controlling interest in a joint venture or a variable interest entity and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the partners/members, as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. As of December 31, 2020 and 2019, the Company held variable interests in two variable interest entities and consolidated those entities. Refer to Note 4. “Variable Interest Entities” for additional information. Non-Controlling Interests The Company’s non-controlling interests are comprised of common units in the OP (“Common Units”). The Company accounts for non-controlling interests in accordance with ASC 810. In accordance with ASC 810, the Company reports non-controlling interests in subsidiaries within equity in the consolidated financial statements, but separate from stockholders’ equity. Net income attributable to non-controlling interests is presented as a reduction from net income in calculating net income attributable to common stockholders on the consolidated statement of operations. Acquisitions or dispositions of non-controlling interests that do not result in a change of control are accounted for as equity transactions. In addition, ASC 810 requires that a parent company recognize a gain or loss in the Company’s results of operations when a subsidiary is deconsolidated upon a change in control. In accordance with ASC 480-10, Distinguishing Liabilities from Equity , non-controlling interests that are determined to be redeemable are carried at their fair value or redemption value as of the balance sheet date and reported as liabilities or temporary equity depending on their terms. The Company periodically evaluates individual non-controlling interests for the ability to continue to recognize the non-controlling interest as permanent equity in the consolidated balance sheets. Any non-controlling interest that fails to qualify as permanent equity will be reclassified as liabilities or temporary equity. All non-controlling interests at December 31, 2020 and 2019, qualified as permanent equity. Use of Estimates The preparation of the Company’s consolidated financial statements requires significant management judgments, assumptions and estimates about matters that are inherently uncertain. These judgments affect the reported amounts of assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in the Company’s consolidated financial statements, and actual results could differ from the estimates or assumptions used by management. Additionally, other companies may utilize different estimates that may impact the comparability of the Company’s consolidated results of operations to those of companies in similar businesses. The Company considers significant estimates to include the carrying amounts and recoverability of investments in real estate, impairments, real estate acquisition purchase price allocations, allowance for doubtful accounts and straight-line rent receivable, estimated useful lives to determine depreciation and amortization and fair value determinations, among others. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents represent current bank accounts and other bank deposits free of encumbrances and having maturity dates of three months or less from the respective dates of deposit. The Company limits cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk in cash. Restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, debt service and leasing costs held by lenders. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the consolidated balance sheets that sum to the total of the same such amounts shown on the consolidated statement of cash flows (amounts in thousands): December 31, 2020 December 31, 2019 Cash and cash equivalents $ 1,816 $ 6,119 Restricted cash 806 1,122 Total cash, cash equivalents, and restricted cash $ 2,622 $ 7,241 Revenue Recognition Revenues include minimum rents, expense recoveries and percentage rental payments. Minimum rents are recognized on an accrual basis over the terms of the related leases on a straight-line basis when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased property. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. For leases with minimum scheduled rent increases, the Company recognizes income on a straight-line basis over the lease term when collectability is reasonably assured. Recognizing rental income on a straight-line basis for leases results in recognized revenue amounts which differ from those that are contractually due from tenants on a cash basis. If the Company determines the collectability of straight-line rents is not reasonably assured, the Company limits future recognition to amounts contractually owed and paid, and, when appropriate, establishes an allowance for estimated losses. The Company maintains an allowance for doubtful accounts, including an allowance for straight-line rent receivables, for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments. The Company monitors the liquidity and creditworthiness of its tenants on an ongoing basis. For straight-line rent amounts, the Company’s assessment is based on amounts estimated to be recoverable over the term of the lease. The Company’s straight-line rent receivable (excluding properties held for sale), which is included in tenant receivables, net, on the consolidated balance sheets, was approximately $0.6 million at each December 31, 2020 and 2019. Certain leases contain provisions that require the payment of additional rents based on the respective tenants’ sales volume (contingent or percentage rent) and substantially all contain provisions that require reimbursement of the tenants’ allocable real estate taxes, insurance and common area maintenance costs (“CAM”). Revenue based on percentage of tenants’ sales is recognized only after the tenant exceeds its sales breakpoint. Revenue from tenant reimbursements of taxes, insurance and CAM is recognized in the period that the applicable costs are incurred in accordance with the lease agreement. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which was added to the ASC under Topic 606 (“ASC 606”) (“ASU 2014-09”). ASC 606 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. As the Company’s revenues are primarily generated through leasing arrangements, and the Company has elected the lessor practical expedient to not separate common area maintenance and reimbursement of real estate taxes from the associated lease for all existing and new leases under ASC 842, the Company’s revenues fall outside the scope of this standard. As part of ASU 2014-09, ASC 610-20, Gains and Losses from Derecognition of Nonfinancial Assets , (“ASC 610-20”) was issued. ASC 610-20 provided guidance for recognizing gains and losses from the transfer of nonfinancial assets, which includes the sale of real estate. In February 2017, the FASB issued ASU No. 2017-05, Other Income-Gains and Losses for the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05”). ASU 2017-05 amends the guidance on nonfinancial assets in ASC 610-20. The amendments clarify that (i) a financial asset is within the scope of ASC 610-20 if it meets the definition of an in-substance nonfinancial asset and may include nonfinancial assets transferred within a legal entity to a counter-party, (ii) an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counter-party and de-recognize each asset when a counter-party obtains control of it, and (iii) an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations. Further, ASU 2017-05 provides guidance on accounting for partial sales of nonfinancial assets. The Company adopted the provisions of ASC 610-20 effective January 1, 2018, for gains on sale of real estate, and recognizes any gains at the time control of a property is transferred and when it is probable that substantially all of the related consideration will be collected. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires entities to recognize lease assets and lease liabilities on the consolidated balance sheet and disclose key information about leasing arrangements. The guidance retains a distinction between finance leases and operating leases. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous guidance. However, the principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases should be recognized in the statement of financial position. The accounting applied by a lessor is largely unchanged from that applied under ASC Topic 840, Leases (“ASC 840”). Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using the modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply under ASC Topic 842, Leases (“ASC 842”). The amendments in this guidance are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASU 2016-02 (as amended by subsequent ASUs) effective January 1, 2019, utilizing the practical expedients described in ASU 2018-11. The Company has elected the lessor practical expedient to not separate common area maintenance and reimbursement of real estate taxes from the associated lease for all existing and new leases as the timing and pattern of payments and associated lease payments are the same. The timing of revenue recognition remains the same for the Company’s existing leases and new leases. Revenues related to the Company’s leases continue to be reported on one line in the presentation within the statement of operations as a result of electing this lessor practical expedient. The Company continues to capitalize its direct leasing costs. These costs are incurred as a result of obtaining new leases, and renewing leases, and are paid to the Company’s Advisor. Additionally, the Company is not a lessee of real estate or equipment, as it is externally managed by its Advisor. Valuation of Accounts Receivable The Company makes estimates of the collectability of its tenant receivables related to base rents, including deferred rents receivable, expense reimbursements and other revenue or income. The Company analyzes tenant receivables, deferred rent receivable, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In addition, with respect to tenants in bankruptcy, the Company will make estimates of the expected recovery of pre-petition and post-petition claims in assessing the estimated collectability of the related receivable. In some cases, the ultimate resolution of these claims can exceed one year. When a tenant is in bankruptcy, the Company will record a bad debt reserve for the tenant’s receivable balance and generally will not recognize subsequent rental revenue until cash is received or until the tenant is no longer in bankruptcy and has the ability to make rental payments. The increase in bad debt receivable as of December 31, 2020, was primarily due to tenants who are in default under their leases. Concentration of Credit Risk A concentration of credit risk arises in the Company’s business when a tenant occupies a substantial amount of space in properties owned by the Company or accounts for a substantial amount of annual revenue. In that event, if the tenant suffers a significant downturn in its business, it may become unable to make its contractual rent payments to the Company, exposing the Company to potential losses in rental revenue, expense recoveries, and percentage rent. Generally, the Company does not obtain security deposits from the nationally-based or regionally-based tenants in support of their lease obligations to the Company. The Company regularly monitors its tenant base to assess potential concentrations of credit risk. As of December 31, 2020, in other than the Company’s properties classified as held for sale, 3705 Group, LLC and La Conq, LLC each accounted for more than 10% of the Company’s annualized minimum rent. As of December 31, 2020, $0.3 million was outstanding from 3705 Group, LLC. There were no amounts outstanding from La Conq, LLC. As of December 31, 2019, in other than the Company’s properties classified as held for sale, 3705 Group, Connor Concepts, Inc., and A Mano each accounted for more than 10% of the Company’s annualized minimum rent. As of December 31, 2019, $35 thousand and $10 thousand was outstanding from 3705 Group, LLC and A Mano, respectively. There were no amounts outstanding from Connor Concepts, Inc. Reportable Segments ASC 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. The Company has one reportable segment, income-producing retail properties, which consists of activities related to investing in real estate. The retail properties are geographically diversified throughout the United States, and the Company evaluates operating performance on an overall portfolio level. Investments in Real Estate The Company applies the provisions of ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”) to account for property acquisitions. ASU No. 2017-01 clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework establishes a screen for determining whether an integrated set of assets and activities is a business and narrows the definition of a business, which is expected to result in fewer transactions being accounted for as business combinations. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. Evaluation of business combination or asset acquisition: The Company evaluates each acquisition of real estate to determine if the integrated set of assets and activities acquired meet the definition of a business and need to be accounted for as a business combination. If either of the following criteria is met, the integrated set of assets and activities acquired would not qualify as a business: • Substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group of similar identifiable assets; or • The integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs (i.e. revenue generated before and after the transaction). An acquired process is considered substantive if: • The process includes an organized workforce (or includes an acquired contract that provides access to an organized workforce), that is skilled, knowledgeable, and experienced in performing the process; • The process cannot be replaced without significant cost, effort, or delay; or • The process is considered unique or scarce. Generally, the Company expects that acquisitions of real estate will not meet the revised definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related intangible assets), or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. In asset acquisitions, the purchase consideration, including acquisition costs, is allocated to the individual assets acquired and liabilities assumed on a relative fair value basis. As a result, asset acquisitions do not result in the recognition of goodwill or a bargain purchase gain. Depreciation and amortization is computed using a straight-line method over the estimated useful lives of the assets as follows: Years Buildings and improvements 5 - 30 years Tenant improvements 1 - 15 years Tenant improvement costs recorded as capital assets are depreciated over the tenant’s remaining lease term, which the Company has determined approximates the useful life of the improvement. Expenditures for ordinary maintenance and repairs are expensed to operations as incurred. Significant renovations and improvements that improve or extend the useful lives of assets are capitalized. Acquisition costs related to asset acquisitions are capitalized in the consolidated balance sheets. Properties Under Development The initial cost of properties under development includes the acquisition cost of the property, direct development costs and borrowing costs directly attributable to the development. Borrowing costs associated with direct expenditures on properties under development are capitalized. The amount of capitalized borrowing costs is determined by reference to borrowings specific to the project, where relevant. Borrowing costs are capitalized from the commencement of the development until the date of practical completion. Practical completion is when the property is capable of operating in the manner intended by management. Capitalization of borrowing costs is suspended if there are prolonged periods when development activity is interrupted. Capitalized costs are reduced by any profits from incidental operations. Interest on projects is based on interest rates in place during the development period, and is capitalized until the project is ready for its intended use. The amount of interest capitalized during the years ended December 31, 2020 and 2019, was approximately $2.1 million and $2.7 million, respectively. Impairment of Long-lived Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its investments in real estate and related intangible assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of the real estate and related intangible assets through its undiscounted future cash flows (excluding interest) and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the investments in real estate and related intangible assets. Key inputs that the Company estimates in this analysis include projected rental rates, capital expenditures, property sale capitalization rates, and expected holding period of the property. The Company evaluates its equity investments for impairment in accordance with ASC 320, Investments – Debt and Securities (“ASC 320”). ASC 320 provides guidance for determining when an investment is considered impaired, whether impairment is other-than-temporary, and measurement of an impairment loss. The Company continually monitors its properties under development for impairment. Estimates of future cash flows used to test the recoverability of properties under development are based on their expected service potential when development is substantially complete. Those estimates include cash flows associated with all future expenditures necessary to develop the properties under development, including interest payments that will be capitalized as part of the cost of the properties under development. The Company recorded an impairment loss during the year ended December 31, 2020 of approximately $13.4 million related to the development project and the operating property it owns through joint ventures, which was included in the Company’s consolidated statement of operations. The Company did not record any impairment losses during the year ended December 31, 2019. Assets Held for Sale When certain criteria are met, long-lived assets are classified as held for sale and are reported at the lower of their carrying value or their fair value, less costs to sell, and are no longer depreciated. Refer to Note 3. “Real Estate Investments” for a discussion of property sales. Fair Value Measurements Under GAAP, the Company is required to measure or disclose certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available for inputs that are significant to the fair value measurement. When available, the Company utilizes quoted market prices or other observable inputs (Level 2 inputs), such as interest rates or yield curves, from independent third-party sources to determine fair value and classify such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to use significant judgment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third-party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for an asset owned by it to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and external appraisals) and establishes a fair value by assigning weights to the various valuation sources. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities when traded as assets; or (ii) a present value technique that considers the future cash flows based on contractual obligations discounted by observed or estimated market rates of comparable liabilities. The use of contractual cash flows with regard to amount and timing significantly reduces the judgment applied in arriving at fair value. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The Company considers the following factors to be indicators of an inactive market: (1) there are few recent transactions; (2) price quotations are not based on current information; (3) price quotations vary substantially either over time or among market makers (for example, some brokered markets); (4) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability; (5) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability; (6) there is a wide bid-ask spread or significant increase in the bid-ask spread; (7) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities; and (8) little information is released publicly (for example, a principal-to-principal market). The Company considers the following factors to be indicators of non-orderly transactions: (1) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions; (2) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant; (3) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced); and (4) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. Deferred Financing Costs Deferred financing costs represent commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing. These costs are amortized over the terms of the respective financing agreements using the straight-line method which approximates the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financings that do not close are expensed in the period in which it is determined that the financing will not close. The Company presents deferred financing costs, net of accumulated amortization, as a contra-liability that reduces the carrying amount of the associated note payable, rather than as a deferred asset. Deferred financing costs related to a line-of-credit arrangement are presented on the balance sheet as a deferred asset, regardless of whether there were any outstanding borrowings at period-end. Income Taxes The Company has elected to be taxed as a REIT under the Internal Revenue Code. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income to stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax on income that it distributes as dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially and adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes that it is organized and operates in such a manner as to qualify for treatment as a REIT. Even if the Company qualifies as a REIT, it may be subject to certain state or local income taxes, and to U.S. federal income and excise taxes on its undistributed income. The Company evaluates tax positions taken in the consolidated financial statements under the interpretation for accounting for uncertainty in income taxes. As a result of this evaluation, the Company may recognize a tax benefit from an uncertain tax position only if it is “more-likely-than-not” that the tax position will be sustained on examination by taxing authorities. When necessary, deferred income taxes are recognized in certain taxable entities. Deferred income tax is generally a function of the period’s temporary differences (items that are treated differently for tax purposes than for financial reporting purposes). A valuation allowance for deferred income tax assets is provided if all or some portion of the deferred income tax asset may not be realized. Any increase or decrease in the valuation allowance is general |
REAL ESTATE INVESTMENTS REAL ES
REAL ESTATE INVESTMENTS REAL ESTATE INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Real Estate [Abstract] | |
REAL ESTATE INVESTMENTS | REAL ESTATE INVESTMENTS Sale of Properties On February 10, 2020, the Company consummated the disposition of Topaz Marketplace, located in Hesperia, California, for approximately $10.5 million in cash. The Company used the net proceeds from the sale to repay the line of credit in its entirety. The disposition of Topaz Marketplace resulted in a gain of approximately $0.9 million, which was included in the Company’s consolidated statement of operations. The Company retained a residual land parcel, that is an improved drive-thru pad. Since the sale of this property does not represent a strategic shift that will have a major effect on the Company’s operations and financial results, the results of operations of this property were not reported as discontinued operations in the Company’s consolidated financial statements. The Company used the net proceeds from the sale of this property to repay the outstanding balance on its line of credit. The Company’s consolidated statements of operations include net operating income for the years ended December 31, 2020 and 2019, related to Topaz Marketplace as follows (amounts in thousands): Year Ended 2020 2019 Operating income (loss) $ (6) $ 555 Pro Forma Financial Information The pro forma financial information below is based upon the Company’s historical consolidated statements of operations for the years ended December 31, 2020 and 2019, adjusted to give effect to the above sale transaction as if it had been completed at the beginning of 2020 and 2019, respectively. The pro forma financial information is presented for information purposes only, and may not be indicative of what actual results of operations would have been had the transaction occurred at the beginning of 2020 and 2019, respectively, nor does it purport to represent results of operations for future periods (amounts in thousands, except per share amounts): (Pro Forma) Year Ended 2020 2019 Rental and reimbursement revenues $ 2,513 $ 2,898 Net income (loss) (15,502) 530 Net income (loss) attributable to common stockholders $ (15,194) $ 519 Net earnings (loss) per share, attributable to common shares - basic and diluted $ (1.41) $ 0.05 Assets Held for Sale and Liabilities Related to Assets Held for Sale At December 31, 2020, Shops at Turkey Creek, located in Knoxville, Tennessee, was classified as held for sale in the consolidated balance sheets. Since the sale of this property does not represent a strategic shift that will have a major effect on the Company’s operations and financial results, the results of operations of this property were not reported as discontinued operations in the Company’s consolidated financial statements. The Company’s consolidated statements of operations include net operating income of approximately $0.1 million and $0.2 million, respectively, for the years ended December 31, 2020 and 2019, related to the assets held for sale. As of March 31, 2020, the residual land parcel at Topaz Marketplace, located in Hesperia, California, no longer met certain criteria to be classified as held for sale. As such, the value related to the parcel was recorded within the relevant line item in the consolidated balance sheet. At December 31, 2019, Topaz Marketplace, located in Hesperia, CA, was classified as held for sale in the consolidated balance sheets. As previously disclosed, the Company consummated the disposition of Topaz Marketplace on February 10, 2020. The major classes of assets and liabilities related to assets held for sale included in the consolidated balance sheets are as follows (amounts in thousands): December 31, 2020 2019 ASSETS Investments in real estate Land $ 1,416 $ 1,680 Building and improvements 2,224 7,966 Tenant improvements 141 898 3,781 10,544 Accumulated depreciation (662) (1,709) Investments in real estate, net 3,119 8,835 Tenant receivables, net — 108 Lease intangibles, net 105 273 Assets held for sale $ 3,224 $ 9,216 LIABILITIES Notes payable $ — $ 8,927 Below-market lease intangibles, net — 12 Liabilities related to assets held for sale $ — $ 8,939 Amounts above are being presented at their carrying value, which the Company believes to be lower than their estimated fair value less costs to sell. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The Company has variable interests in, and is the primary beneficiary of, variable interest entities (“VIEs”) through its investments in (i) the Sunset & Gardner Joint Venture and (ii) the 3032 Wilshire Joint Venture. The Company has consolidated the accounts of these variable interest entities. Sunset & Gardner Joint Venture On January 7, 2016, the Company, through wholly-owned subsidiaries, entered into the Limited Liability Company Agreement of Sunset & Gardner Investors, LLC (the “Sunset & Gardner Joint Venture Agreement”) to form a joint venture (the” Sunset & Gardner Joint Venture”) with Sunset & Gardner LA, LLC (“S&G LA” and, together with the Company, the “Sunset & Gardner Members”), a subsidiary of Cadence Capital Investments, LLC (“Cadence”). The Sunset & Gardner Joint Venture Agreement provides for the ownership and operation of certain real property by the Sunset & Gardner Joint Venture, in which the Company owns a 100% capital interest and a 50% profits interest. In exchange for ownership in the Sunset & Gardner Joint Venture, the Company contributed cash in an amount of $5.3 million in initial capital contributions and has agreed to contribute a minimum of $0.7 million in subsequent capital contributions to the Sunset & Gardner Joint Venture. S&G LA contributed its rights to acquire the real property and agreed to provide certain management and development services. On January 28, 2016, the Sunset & Gardner Joint Venture used the capital contributions of the Company, together with the proceeds of a loan in the amount of $10.7 million, to purchase property located at the corner of Sunset Boulevard and Gardner in Hollywood, California from a third party seller, for a total purchase price of approximately $13.0 million. Pursuant to the Sunset & Gardner Joint Venture Agreement, S&G LA manages and conducts the day-to-day operations and affairs of the Sunset & Gardner Joint Venture, subject to certain major decisions set forth in the Sunset & Gardner Joint Venture Agreement that require the consent of all the Sunset & Gardner Members. The Company has the power to direct the activities of the Sunset & Gardner Joint Venture through its approval process of the activities that most significantly impact the economic performance of the Sunset & Gardner Joint Venture. Such activities include the budgeting, leasing, financings, and ultimately, the sale of the property. Income, losses and distributions are generally allocated based on the Sunset & Gardner Members’ respective capital and profits interests. Through the Company’s commitment to contribute 100% of capital to develop and operate the property through the life of the Sunset & Gardner Joint Venture, the Company has an obligation to absorb losses of the Sunset & Gardner Joint Venture. Additionally, in certain circumstances described in the Sunset & Gardner Joint Venture Agreement, the Company may be required to make additional capital contributions to the Joint Venture, in proportion to the Sunset & Gardner Members’ respective ownership interests. Until the Company has received back its capital contribution and specified preferred returns, all distributions go to the Company; thereafter, the Sunset & Gardner Joint Venture will distribute the profits 50% to the Company and 50% to S&G LA. Additionally, the Company has the ability to buy out S&G LA upon certain conditions per the Operating Agreement. Through December 31, 2020, the Company made additional capital contributions totaling $7.4 million to the Sunset & Gardner Joint Venture. 3032 Wilshire Joint Venture On December 21, 2015, the Company, through wholly-owned subsidiaries, entered into the Limited Liability Company Agreement of 3032 Wilshire Investors, LLC (the “Wilshire Joint Venture Agreement”) to form a joint venture (the “Wilshire Joint Venture”) with 3032 Wilshire SM, LLC, a subsidiary of Cadence (together with the Company, the “Wilshire Members”). On December 14, 2015, and January 5, 2016, the Company paid deposits in the amounts of $0.5 million and $0.1 million, respectively, toward the acquisition of certain property located at 3032 Wilshire Boulevard and 1210 Berkeley Street in Santa Monica, California (the “Wilshire Property”). On March 7, 2016, the Company contributed $5.7 million to the Wilshire Joint Venture. The Wilshire Joint Venture Agreement provides for the ownership and operation of certain real property by the Wilshire Joint Venture, in which the Company owns a 100% capital interest and a 50% profits interest. On March 8, 2016, the Wilshire Joint Venture used the deposits and capital contribution of the Company, together with the proceeds of a loan in the amount of $8.5 million, to acquire the Wilshire Property from a third-party seller, for a total purchase price of $13.5 million. Pursuant to the Wilshire Joint Venture Agreement, 3032 Wilshire SM manages and conducts the day-to-day operations and affairs of the Wilshire Joint Venture, subject to certain major decisions set forth in the Wilshire Joint Venture Agreement that require the consent of all the Wilshire Members. The Company has the power to direct the activities of the Wilshire Joint Venture through its approval process of the activities that most significantly impact the economic performance of the Wilshire Joint Venture. Such activities include the budgeting, leasing, financings, and ultimately, the sale of the property. Income, losses and distributions are generally allocated based on the Wilshire Members’ respective capital and profits interests. Through the Company’s commitment to contribute 100% of capital to develop and operate the property through the life of the Wilshire Joint Venture, the Company has an obligation to absorb losses of the Wilshire Joint Venture. Additionally, in certain circumstances described in the Wilshire Joint Venture Agreement, the Company may be required to make additional capital contributions to the Wilshire Joint Venture, in proportion to the Wilshire Members’ respective ownership interests. Until the Company has received back its capital contribution and specified preferred returns, all distributions go to the Company; thereafter, the Wilshire Joint Venture will distribute the profits 50% to the Company and 50% to 3032 Wilshire SM. Additionally, the Company has the ability to buy out 3032 Wilshire SM upon certain conditions per the Operating Agreement. During the year ended December 31, 2020, construction of the Wilshire Property was substantially completed. Through December 31, 2020, the Company made additional capital contributions totaling $7.8 million to the Wilshire Joint Venture. The following table reflects the aggregate assets and liabilities of the Sunset & Gardner Joint Venture and the Wilshire Joint Venture, which were consolidated by the Company, as of December 31, 2020 and 2019 (amounts in thousands): December 31, 2020 2019 ASSETS Investments in real estate Land $ 13,026 $ — Building and improvements 10,624 — Tenant improvements 547 — 24,197 — Accumulated depreciation (209) — Investments in real estate, net 23,988 — Properties under development and development costs: Land 12,958 25,851 Buildings — 554 Development costs 2,441 20,813 Properties under development and development costs 15,399 47,218 Cash, cash equivalents and restricted cash 340 2,154 Prepaid expenses and other assets, net 11 7 Lease intangibles, net 73 4 TOTAL ASSETS (1) $ 39,811 $ 49,383 LIABILITIES Notes payable, net (2) $ 20,868 $ 16,713 Accounts payable and accrued expenses 212 1,702 Amounts due to affiliates — 111 Other liabilities 33 5 TOTAL LIABILITIES $ 21,113 $ 18,531 (1) The assets of the Sunset & Gardner Joint Venture and Wilshire Joint Venture can be used only to settle obligations of the respective consolidated joint ventures. (2) As of December 31, 2020 and 2019, includes reclassification of approximately $0.3 million and $0.5 million, respectively, of deferred financing costs, net, as a contra-liability. The creditors of the consolidated joint ventures do not have recourse to the general credit of the Company. The notes payable of the Wilshire Joint Venture is partially guaranteed by the Company, refer to Note 7, “Notes Payable, Net”. The notes payable of the Sunset & Gardner Joint Venture is not guaranteed by the Company. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
FUTURE MINIMUM RENTAL INCOME | LEASES Operating Leases The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of December 31, 2020, the leases at the Company’s properties, excluding the property classified as held for sale, have remaining terms (excluding options to extend) of up to 10.9 years with a weighted-average remaining term (excluding options to extend) of approximately 6.3 years. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit and/or a letter of credit. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled approximately $0.1 million and $0.2 million as of December 31, 2020 and 2019, respectively. The following table presents the components of income from real estate operations for the years ended December 31, 2020 and 2019 (amounts in thousands): Year Ended 2020 2019 Lease income - operating leases $ 2,040 $ 2,983 Variable lease income (1) 592 909 Rental and reimbursements income $ 2,632 $ 3,892 (1) Primarily includes tenant reimbursements for real estate taxes, insurance and common area maintenance. During the year ended December 31, 2020, certain of the Company’s tenants requested rent relief as a result of the COVID-19 pandemic. At the start of the pandemic and shelter-in-place orders, a majority of the Company’s tenants requested rent deferral or rent abatement due to the pandemic and government-mandated restrictions. These tenants totaled approximately 94% of the leased square footage in the Company’s wholly-owned properties. Not all tenant requests resulted in modified agreements nor did the Company forgo its contractual rights under its lease agreements. The Company reviewed these requests on a case-by-case basis and agreed to modifications to some of the tenant leases, while other leases were not modified. Of the total leased square footage in the Company’s wholly-owned properties, 47% of the leases were either (i) not modified and the tenants were able to continue to make their payments or (ii) the leases were modified to provide for a short-term temporary rent deferral or abatement. The rent deferrals generally were one to two months and were to be repaid within 12 months. Any rent abatement was typically one to two months and involved an extension of the tenant's lease. Another 28% of the leases in the Company’s wholly-owned properties were modified to provide ongoing rent relief to the tenant. These lease modifications involved some combination of lease extensions, application of security deposits, temporary rent deferrals, partial rent forgiveness or abatement, and new percentage rent clauses to protect the landlord in the event sales returned to prior levels during the period of the lease modifications. Temporary deferrals resulted in increased receivable balances, with continued recognition of revenue during the deferral period. Lease term extensions with partial rent forgiveness and/or abatement, resulted in adjustments to the amount of revenue recognized on a straight-line basis. The tenants making up the remaining 25% of the Company’s wholly-owned properties’ leased square footage requested lease concessions; however, the Company could not agree with these tenants on lease changes acceptable to both parties. On December 31, 2020, these tenants were in default under their leases; however, the Company is temporarily unable to evict them under state and local statutes and moratoria. The Company is working with these tenants to find replacement tenants and terminate their leases. As of December 31, 2020, approximately $0.4 million of rental income due and payable was outstanding. The Company collected a total of approximately $15 thousand, or 4%, of the outstanding balance in January and February 2021. Additionally, approximately $0.1 million of rental income earned and recognized during the year ended December 31, 2020, was deferred and is expected to be collected in future periods. As of December 31, 2020, the future minimum rental income from the Company’s wholly-owned properties under non-cancelable operating leases, excluding properties classified as held for sale, was as follows (amounts in thousands): 2021 $ 1,711 2022 1,803 2023 1,828 2024 1,850 2025 1,638 Thereafter 3,434 Total $ 12,264 |
LEASE INTANGIBLES AND BELOW-MAR
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
ACQUIRED LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES | LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES, NET As of December 31, 2020 and 2019, the Company’s acquired lease intangibles and below-market lease liabilities, excluding intangibles and below-market lease liabilities classified as held for sale, were as follows (amounts in thousands): Lease Intangibles Below-Market Lease Liabilities December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Cost $ 1,892 $ 2,084 $ (389) $ (492) Accumulated amortization (716) (763) 142 196 Total $ 1,176 $ 1,321 $ (247) $ (296) The Company’s amortization of lease intangibles and below-market lease liabilities for the years ended December 31, 2020 and 2019, were as follows (amounts in thousands): Lease Intangibles Below-Market Lease Liabilities Year Ended Year Ended 2020 2019 2020 2019 Amortization $ (236) $ (329) $ 49 $ 62 The scheduled future amortization of lease intangibles and below-market lease liabilities, excluding intangibles and below-market lease liabilities classified as held for sale, as of December 31, 2020, was as follows (amounts in thousands): Lease Intangibles Below-Market Lease Intangibles 2021 $ 191 $ (34) 2022 191 (34) 2023 188 (34) 2024 178 (34) 2025 131 (25) Thereafter 297 (86) Total $ 1,176 $ (247) |
NOTES PAYABLE, NET
NOTES PAYABLE, NET | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE, NET Multi-Property Secured Financing On December 24, 2019, the Company entered into a Loan Agreement (the “SRT Loan Agreement”) with PFP Holding Company, LLC (the “SRT Lender”) for a non-recourse secured loan (the “SRT Loan”). The SRT Loan is secured by first deeds of trust on the Company’s five San Francisco assets (Fulton Shops, 8 Octavia, 400 Grove, 450 Hayes and 388 Fulton Street) as well as the Company’s Silverlake Collection located in Los Angeles. Proceeds from the SRT Loan were used by the Company to pay down the Company’s credit facility and in connection with such payment, the properties referenced above were released from liens related to that credit facility. The SRT Loan matures on January 9, 2023. The Company has an option to extend the term of the loan for two additional twelve-month periods, subject to the satisfaction of certain covenants and conditions contained in the SRT Loan Agreement. The Company has the right to prepay the SRT Loan in whole at any time or in part from time to time, subject to the payment of yield maintenance payments if such prepayment occurs in the first 18 months of the loan term, calculated through the 18th monthly payment date, as well as certain expenses, costs or liabilities potentially incurred by the SRT Lender as a result of the prepayment and subject to certain other conditions contained in the loan documents. Individual properties may be released from the SRT Loan collateral in connection with bona fide third-party sales, subject to compliance with certain covenants and conditions contained in the SRT Loan Agreement. Any prepayment or repayment on or before the first 12 months of the loan term in connection with a bona fide third-party sale of a property securing the SRT Loan shall only require the payment of yield maintenance payments calculated through the 12th monthly payment date. As of December 31, 2020, the SRT Loan had a principal balance of approximately $18.0 million. The SRT Loan is a floating LIBOR rate loan which bears interest at 30-day LIBOR (with a floor of 1.50%) plus 2.80%. The default rate is equal to 5% above the rate that otherwise would be in effect. Monthly payments are interest-only with the entire principal balance and all outstanding interest due at maturity. Pursuant to the SRT Loan, the Company must comply with certain matters contained in the loan documents including but not limited to, (i) requirements to deliver audited and unaudited financial statements, SEC filings, tax returns, pro forma budgets, and quarterly compliance certificates, and (ii) minimum limits on the Company’s liquidity and tangible net worth. The SRT Loan contains customary covenants, including, without limitation, covenants with respect to maintenance of properties and insurance, compliance with laws and environmental matters, covenants limiting or prohibiting the creation of liens, and transactions with affiliates. At December 31, 2020, the Company was in compliance with the loan requirements in effect as of that date. In connection with the SRT Loan, the Company executed customary non-recourse carveout and environmental guaranties, together with limited additional assurances with regard to the condominium structures of the San Francisco assets. Loans Secured by Properties On May 7, 2019, the Company refinanced and repaid its financing from Loan Oak Fund, LLC with a new construction loan from ReadyCap Commercial, LLC (the “Lender”) (the “Wilshire Construction Loan”). As of December 31, 2020, the Wilshire Construction Loan had a principal balance of approximately $12.5 million, with future funding availability up to a total of approximately $13.9 million, and bears an interest rate of 1-month LIBOR plus an interest margin of 4.25% per annum, payable monthly. The Wilshire Loan is scheduled to mature on May 10, 2022, with options to extend for two additional twelve-month periods, subject to certain conditions as stated in the loan agreement. The Wilshire Construction Loan is secured by a first Deed of Trust on the Wilshire Property. The Company executed a guaranty that guaranties that the loan interest reserve amounts are kept in compliance with the terms of the loan agreement. The Lender also required that a principal in the upstream owner of the Company’s joint venture partner in the Wilshire Joint Venture (the “Guarantor”), guarantees performance of borrower’s obligations under the loan agreement with respect to the completion of capital improvements to the property. The Company executed an Indemnity Agreement in favor of the Guarantor against liability under that completion guaranty except to the extent caused by gross negligence or willful misconduct, as well as for liabilities incurred under the Environmental Indemnity Agreement executed by the Guarantor in favor of the Lender. The Company used working capital funds of approximately $3.1 million to repay the difference between the Wilshire Construction Loan initial advance and the prior loan, to pay transaction costs, as well as to fund certain required interest and construction reserves. Line of Credit On February 10, 2020, the Company used proceeds from the sale of Topaz Marketplace to repay the line of credit in its entirety. The line of credit expired of its own accord on February 15, 2020, with no balance outstanding. As part of the payoff, Shops at Turkey Creek was released from the line of credit. The Company’s line of credit was a revolving credit facility with an initial maximum aggregate commitment of $30.0 million. Effective February 15, 2017, the Company’s line of credit was refinanced to increase the maximum aggregate commitment under the credit facility from $30.0 million to $60.0 million. Effective November 7, 2019, the Company elected to permanently reduce the maximum aggregate commitment under its line of credit from $60.0 million to $30.0 million. All other terms of the credit facility remained the same. Effective January 8, 2020, the Company elected to permanently reduce the maximum aggregate commitment under its line of credit from $30.0 million to $10.5 million. Other than changes to the line of credit’s maximum aggregate commitment, all other terms of the credit facility remained the same throughout the life of the credit facility. The credit facility matured on February 15, 2020. Each loan made pursuant to the credit facility was either a LIBOR loan or a base rate loan, at the election of the Company, plus an applicable margin, as defined. Monthly payments were interest only with the entire principal balance and all outstanding interest due at maturity. The Company paid the lender an unused commitment fee, quarterly in arrears, which was accrued at 0.30% per annum, if the usage under the Company’s line of credit was less than or equal to 50% of the line of credit amount, and 0.20% per annum if the usage under the Company’s line of credit was greater than 50% of the line of credit amount. The Company was providing a guaranty of all of its obligations under the Company’s line of credit. Loans Secured by Properties Under Development On October 29, 2018, the Company entered into a loan agreement with Lone Oak Fund, LLC (the “Sunset & Gardner Loan”). The Sunset & Gardner Loan has a principal balance of approximately $8.7 million, and had an interest rate of 6.9% per annum. The original Sunset & Gardner Loan agreement matured on October 31, 2019. The Company extended the Sunset & Gardner Loan for an additional twelve-month period under the same terms, with an interest rate of 6.5% per annum. On July 31, 2020, the Company extended the Sunset & Gardner Loan for an additional twelve-month period under the same terms, with an interest rate of 7.3% per annum. The new maturity date is October 31, 2021. The Sunset & Gardner Loan is secured by a first Deed of Trust on the Sunset & Gardner Property. The following is a schedule of future principal payments for all of the Company’s notes payable outstanding as of December 31, 2020 (amounts in thousands): 2021 $ 8,700 2022 12,510 2023 18,000 Total (1) $ 39,210 (1) Total future principal payments reflect actual amounts due to creditors, and excludes reclassification of $0.9 million deferred financing costs, net. During the year ended December 31, 2020, the Company incurred and expensed approximately $0.8 million of interest costs, which included the amortization of deferred financing costs of approximately $0.4 million. During the year ended December 31, 2019, the Company incurred and expensed approximately $0.7 million of interest costs, which primarily consisted of amortization of deferred financing costs. Also during the years ended December 31, 2020 and 2019, the Company incurred and capitalized approximately $2.1 million and $2.7 million, respectively, of interest expense related to the variable interest entities which included amortization of deferred financing costs of approximately $0.3 million and $0.4 million, respectively, for each period. As of both December 31, 2020 and 2019, interest expense payable was approximately $0.2 million, including an amount related to the variable interest entities of approximately $0.1 million, for each period. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES The Company believes the total carrying values reflected on its consolidated balance sheets for cash, cash equivalents and restricted cash, accounts receivable, accounts payable and accrued expenses, amounts due to affiliates, mortgage loan and construction loan secured by properties under development, and the Company’s multi-property secured financing, reasonably approximated their fair values based on their nature, terms, and interest rates that approximate current market rates at December 31, 2020. As part of the Company’s ongoing evaluation of the Company’s real estate portfolio, the Company estimates the fair value of its investments in real estate by obtaining outside independent appraisals on all of the operating properties. The appraised values are compared with the carrying values of its real estate portfolio to determine if there are indications of impairment. Using Level 3 measurements, including each property’s undiscounted cash flow, which took into account each property’s expected cash flow from operations, anticipated holding period and estimated proceeds from disposition, as well as terminal capitalization rates that range from 4.23% to 4.50%, the Company determined that the carrying values of the operating and development properties it owns through the Wilshire Joint Venture and the Sunset & Gardner Joint Venture, respectively, were not fully recoverable. As such, for the year ended December 31, 2020, the Company recorded impairment losses of approximately $4.4 million and $8.9 million, respectively, related to the Wilshire Property and the development property owned by the Sunset & Gardner Joint Venture. For the year ended December 31, 2019, the Company did not record any impairment losses. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | EQUITY Common Stock Under the Company’s Articles of Amendment and Restatement (the “Charter”), the Company has the authority to issue 400,000,000 shares of common stock. All shares of common stock have a par value of $0.01 per share. On February 7, 2013, the Company terminated the Offering and ceased offering its securities. The Company sold 10,688,940 shares of common stock in its primary offering for gross operating proceeds of $104.7 million, 391,182 shares of common stock under the distribution reinvestment plan (“DRIP”) for gross offering proceeds of $3.6 million, granted 50,000 shares of restricted stock and issued 273,729 common shares to pay a portion of a special distribution on November 4, 2015. Cumulatively, through December 31, 2020, pursuant to the Original Share Redemption Program and the Amended and Restated Share Redemption Program (the “SRP”), the Company has redeemed 878,458 shares sold in the Offering and/or the DRIP for $6.2 million. Common Units of the OP On May 26, 2011, in connection with the acquisition of Pinehurst Square East, a retail property located in Bismarck, North Dakota, the OP issued 287,472 Common Units to certain of the sellers of Pinehurst Square East who elected to receive Common Units for an aggregate value of approximately $2.6 million, or $9.00 per Common Unit. On March 12, 2012, in connection with the acquisition of Turkey Creek, a retail property located in Knoxville, Tennessee, the OP issued 144,324 Common Units to certain of the sellers of Turkey Creek who elected to receive Common Units for an aggregate value of approximately $1.4 million, or $9.50 per Common Unit. During the year ended December 31, 2019, 17,719 of Common Units were converted into the Company’s common shares for an aggregate basis of approximately $0.1 million. Pursuant to the Advisory Agreement, in April 2014 the Company caused the OP to issue to the Advisor a separate series of limited partnership interests of the OP in exchange for a capital contribution to the OP of $1 thousand (the “Special Units”). The terms of the Special Units entitle the Advisor to (i) 15% of the Company’s net sale proceeds upon disposition of its assets after the Company’s stockholders receive a return of their investment plus a 7% cumulative, non-compounded rate of return or (ii) an equivalent amount in the event that the Company lists its shares of common stock on a national securities exchange or upon certain terminations of the Advisory Agreement after the Company’s stockholders are deemed to have received a return of their investment plus a 7% cumulative, non-compounded rate of return.The holders of Common Units, other than the Company and the holder of the Special Units, generally have the right to cause the OP to redeem all or a portion of their Common Units for, at the Company’s sole discretion, shares of the Company’s common stock, cash or a combination of both. If the Company elects to redeem Common Units for shares of common stock, the Company will generally deliver one share of common stock for each Common Unit redeemed. Holders of Common Units, other than the Company and the holders of the Special Units, may exercise their redemption rights at any time after one year following the date of issuance of their Common Units; provided, however, that a holder of Common Units may not deliver more than two redemption notices in a single calendar year and may not exercise a redemption right for less than 1,000 Common Units, unless such holder holds less than 1,000 Common Units, in which case, it must exercise its redemption right for all of its Common Units. Preferred Stock The Charter authorizes the Company to issue 50,000,000 shares of $0.01 par value preferred stock. As of December 31, 2020 and 2019, no shares of preferred stock were issued and outstanding. Share Redemption Program On April 1, 2015, the Company’s board of directors approved the reinstatement of the share redemption program (which had been suspended since January 15, 2013) and adopted the SRP. Under the SRP, only shares submitted for repurchase in connection with the death or “qualifying disability” (as defined in the SRP) of a stockholder are eligible for repurchase by the Company. Under the current SRP, as amended to date, the number of shares to be redeemed is limited to the lesser of (i) a total of $3.8 million for redemptions sought upon a stockholder’s death and a total of $1.2 million for redemptions sought upon a stockholder’s qualifying disability, and (ii) 5% of the weighted-average number of shares of the Company’s common stock outstanding during the prior calendar year. Share repurchases pursuant to the SRP are made at the sole discretion of the Company. The Company reserves the right to reject any redemption request for any reason or no reason or to amend or terminate the share redemption program at any time subject to the notice requirements in the SRP. The redemption price for shares that are redeemed is 100% of the Company’s most recent estimated net asset value per share as of the applicable redemption date. A redemption request must be made within one year after the stockholder’s death or qualifying disability. The SRP provides that any request to redeem less than $5,000 worth of shares will be treated as a request to redeem all of the stockholder’s shares. If the Company cannot honor all redemption requests received in a given quarter, all requests, including death and qualifying disability redemptions, will be honored on a pro rata basis. If the Company does not completely satisfy a redemption request in one quarter, it will treat the unsatisfied portion as a request for redemption in the next quarter when funds are available for redemption, unless the request is withdrawn. The Company may increase or decrease the amount of funding available for redemptions under the SRP on ten business days’ notice to stockholders. Shares submitted for redemption during any quarter will be redeemed on the penultimate business day of such quarter. The record date for quarterly distributions has historically been and is expected to continue to be the last business day of each quarter; therefore, shares that are redeemed during any quarter are expected to be redeemed prior to the record date and thus would not be eligible to receive the distribution declared for such quarter. In order to preserve cash in light of the uncertainty relating to the duration of shelter-in-place orders and the economic impact of COVID-19 on the Company, by unanimous written consent executed on April 21, 2020, the board of directors approved the suspension of the SRP, which offered redemption opportunities only in connection with a stockholder’s death or qualifying disability. Under the SRP, the board of directors may amend, suspend, or terminate the SRP with 30 days’ notice to the Company’s stockholders. The Current Report on Form 8-K, filed on April 21, 2020 with the SEC, served as such required notice and therefore the suspension of the SRP became effective on May 21, 2020. The SRP will remain suspended and no further redemptions will be made until the board of directors approves the resumption of the SRP. During the suspension, the Company will continue to accept death and qualifying disability redemption filings from stockholders, but will not take any action with regard to those requests until the board of directors has elected to lift the suspension and provided the terms and conditions for any continuation of the SRP. The following table summarizes share redemption activity during the years ended December 31, 2020 and 2019 (amounts in thousands, except shares): Year Ended 2020 2019 Shares of common stock redeemed 19,907 121,297 Purchase price $ 117 $ 722 As stated above, cumulatively, through December 31, 2020, pursuant to the Original Share Redemption Program and the Amended and Restated SRP, the Company has redeemed 878,458 shares sold in the Offering and/or its dividend reinvestment plan for $6.2 million. Quarterly Distributions In order to qualify as a REIT, the Company is required to distribute at least 90% of its annual REIT taxable income, subject to certain adjustments, to its stockholders. Some or all of the Company’s distributions have been paid, and in the future may continue to be paid from sources other than cash flows from operations. The Company’s board of directors evaluates the Company’s ability to make quarterly distributions based on the Company’s operational cash needs. In light of the COVID-19 pandemic, its impact on the economy and the related future uncertainty, on March 27, 2020, the board of directors of the Company voted to suspend the payment of any dividend for the quarter ending March 31, 2020, and to reconsider future dividend payments on a quarter by quarter basis as more information becomes available on the impact of COVID-19 and related impact to the Company. Dividend payments were not reinstated as of December 31, 2020. The following table set forth the quarterly distributions declared to the Company’s common stockholders and Common Unit holders for the year ended December 31, 2019 (amounts in thousands, except per share amounts): Distribution Record Distribution Distribution Per Share of Common Stock / Total Common Total Common Total First Quarter 2019 3/31/2019 4/30/2019 $ 0.06 $ 651 $ 14 $ 665 Second Quarter 2019 6/30/2019 7/31/2019 0.06 648 14 662 Third Quarter 2019 9/30/2019 10/31/2019 0.06 646 13 659 Fourth Quarter 2019 12/31/2019 1/31/2020 0.02 215 5 220 Total $ 2,160 $ 46 $ 2,206 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREEPS is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed after adjusting the basic EPS computation for the effect of potentially dilutive securities outstanding during the period. The effect of non-vested shares, if dilutive, is computed using the treasury stock method. The Company applies the two-class method for determining EPS as its outstanding shares of non-vested restricted stock are considered participating securities as dividend payments are not forfeited even if the underlying award does not vest. There was no unvested stock as of December 31, 2020. The Company’s excess of distributions over earnings related to participating securities are shown as a reduction in income (loss) attributable to common stockholders in the Company’s computation of EPS. The following table sets forth the computation of the Company’s basic and diluted earnings per share for the years ended December 31, 2020 and 2019 (amounts in thousands, except shares and per share amounts): Year Ended 2020 2019 Numerator - basic and diluted Net income (loss) $ (15,508) $ 138 Net income (loss) attributable to non-controlling interests (308) 3 Net income (loss) attributable to common shares $ (15,200) $ 135 Denominator - basic and diluted Basic weighted average common shares 10,744,570 10,818,686 Common Units (1) — — Diluted weighted average common shares 10,744,570 10,818,686 Earnings (loss) per common share - basic and diluted Net earnings (loss) attributable to common shares $ (1.41) $ 0.01 (1) The effect of 217,475 convertible Common Units pursuant to the redemption rights outlined in the Company’s registration statement on Form S-11 have not been included as they would not be dilutive. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS On August 7, 2013, the Company entered into the Advisory Agreement with the Advisor, which has been renewed for successive terms with a current expiration date of August 9, 2021. The Advisor manages the Company’s business as the Company’s external advisor pursuant to the Advisory Agreement. Pursuant to the Advisory Agreement, the Company will pay the Advisor specified fees for services related to the investment of funds in real estate and real estate-related investments, management of the Company’s investments and for other services. Summary of Related Party Fees The following table sets forth the Advisor related party costs incurred and payable by the Company for the periods presented (amounts in thousands): Incurred Payable as of Year Ended December 31, Expensed 2020 2019 2020 2019 Asset management fees $ 636 $ 647 $ — $ — Reimbursement of operating expenses 23 35 — — Property management fees 81 126 9 7 Disposition fees 157 2 — — Total $ 897 $ 810 $ 9 $ 7 Capitalized Acquisition fees $ 18 $ 46 $ — $ — Leasing fees 113 — — — Legal leasing fees 42 — — — Construction management fees 138 174 2 111 Financing coordination fees 44 179 — 22 Total $ 355 $ 399 $ 2 $ 133 Acquisition Fees Under the Advisory Agreement, the Advisor is entitled to receive an acquisition fee equal to 1% of (1) the cost of each investment acquired directly by the Company or (2) the Company’s allocable cost of an investment acquired pursuant to a joint venture, in each case including purchase price, acquisition expenses and any debt attributable to such investments. An acquisition fee is capitalized by the Company when the related transaction does not qualify as a business combination; otherwise an acquisition fee is expensed. Financing Coordination Fees Under the Advisory Agreement, the Advisor is entitled to receive a financing coordination fee equal to 1% of the amount made available and/or outstanding under any (1) financing obtained or assumed, directly or indirectly, by the Company or the OP and used to acquire or originate investments, or (2) the refinancing of any financing obtained or assumed, directly or indirectly, by the Company or the OP. Asset Management Fees Under the Advisory Agreement, the Advisor is entitled to receive an asset management fee equal to a monthly fee of one-twelfth (1/12th) of 0.6% of the higher of (1) aggregate cost on a GAAP basis (before non-cash reserves and depreciation) of all investments the Company owns, including any debt attributable to such investments, or (2) the fair market value of the Company’s investments (before non-cash reserves and depreciation) if the board of directors has authorized the estimate of a fair market value of the Company’s investments; provided, however, that the asset management fee will not be less than $250,000 in the aggregate during any one calendar year. Reimbursement of Operating Expenses The Company reimburses the Advisor for all expenses paid or incurred by the Advisor in connection with the services provided to the Company, subject to the limitation that the Company will not reimburse the Advisor for any amount by which the Company’s total operating expenses (including the asset management fee described above) at the end of the four preceding fiscal quarters exceeded the greater of (1) 2% of its average invested assets (as defined in the Company’s Articles of Amendment and Restatement (the “Charter”)); or (2) 25% of its net income (as defined in the Charter) determined without reduction for any additions to depreciation, bad debts or other similar non-cash expenses and excluding any gain from the sale of the Company’s assets for that period (the “2%/25% Guideline”). The Advisor is required to reimburse the Company quarterly for any amounts by which total operating expenses exceed the 2%/25% Guideline in the previous expense year that the independent directors do not approve. The Company will not reimburse the Advisor for any of its personnel costs or other overhead costs except for customary reimbursements for personnel costs under property management agreements entered into between the OP and the Advisor or its affiliates. Notwithstanding the above, the Company may reimburse the Advisor for expenses in excess of the 2%/25% Guideline if a majority of the independent directors determine that such excess expenses are justified based on unusual and non-recurring factors. Pursuant to an amendment to the Advisory Agreement entered on August 2, 2018, the board of directors, including a majority of the independent directors identified certain unusual and non-recurring factors that would justify reimbursement to the Advisor of amounts in excess of the 2%/25% Guidelines and confirmed that the Advisor would not be obligated to reimburse the Company for these excess amounts to the extent the excess was caused by such factors. For the years ended December 31, 2020 and 2019, the Company’s total operating expenses (as defined in the Charter) did not exceed the 2%/25% Guideline. Property Management Fees Under the property management agreements between the Company and Glenborough, Glenborough is entitled to receive property management fees calculated at a maximum of up to 4% of the properties’ gross revenue. The property management agreements with Glenborough have been renewed for an additional 12 months, beginning on August 10, 2020. Property management agreements with Glenborough automatically renew every year, unless expressly terminated. Disposition Fees Under the Advisory Agreement, if the Advisor or its affiliates provide a substantial amount of services, as determined by the Company’s independent directors, in connection with the sale of a real property, the Advisor or its affiliates may be paid disposition fees up to 50% of a customary and competitive real estate commission, but not to exceed 3% of the contract sales price of each property sold. Leasing Fees Under the property management agreements, Glenborough is entitled to receive a separate fee for the leases of new tenants, and for expansions, extensions and renewals of existing tenants in an amount not to exceed the fee customarily charged by similarly situated parties rendering similar services in the same geographic area for similar properties. Legal Leasing Fees Under the property management agreements, Glenborough is entitled to receive a market-based legal leasing fee for the negotiation and production of new leases, renewals, and amendments. Construction Management Fees In connection with the construction or repair in or about a property, the property manager is responsible for coordinating and facilitating the planning and the performance of all construction and is entitled to receive a fee equal to 5% of the hard costs for the project in question. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Economic Dependency The Company is dependent on the Advisor and its affiliates for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase, and disposition of real estate and real estate-related investments, management of the daily operations of the Company’s real estate and real estate-related investment portfolio, and other general and administrative responsibilities. In the event that the Advisor is unable to provide such services to the Company, the Company will be required to obtain such services from other sources. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its consolidated financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. |
SUBSEQUENT EVENTS SUBSEQUENT EV
SUBSEQUENT EVENTS SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Mortgage Financing On March 3, 2021, the Company obtained a $2.5 million Standby Loan Commitment (the “Loan”) from Glenborough Property Partners, LLC, an affiliate of the Advisor. If the Company elects to act on the Standby Commitment, the Loan would have a term of 12 months with an interest rate of 7.0% per annum, payable monthly. The Company would have the right to prepay or repay the Loan in whole or in part at any time without penalty. There are no other loan fees or financing coordination fees paid or payable in connection with this loan. The Loan would be secured by first deed of trust on Shops at Turkey Creek. Other Events On March 3, 2021, SRT Advisor, LLC, the Advisor of Strategic Realty Trust and an affiliate of Glenborough, LLC, has notified the Board of Directors of Strategic Realty Trust, Inc. of its consolidation with PUR SRT Advisors LLC, an affiliate of PUR Management LLC, which is an affiliate of L3 Capital, LLC. L3 Capital is a real estate investment firm focused on institutional quality, value-add, prime urban retail and mixed-use investment within first tier U.S. metropolitan markets. |
SEC Schedule, Article 12-28, Re
SEC Schedule, Article 12-28, Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure | STRATEGIC REALTY TRUST, INC. AND SUBSIDIARIES SCHEDULE III — REAL ESTATE OPERATING PROPERTIES AND ACCUMULATED DEPRECIATION December 31, 2020 (amounts in thousands) Initial Cost to Company Cost Capitalized Subsequent to Acquisition (1) Gross Amount of Which Carried at Life on which Depreciation in Latest Statement of Operations is Computed (3) Encumbrances Land Building Land Building Total (2) Accumulated Depreciation Acquisition Date Topaz Marketplace $ — $ 2,120 $ 10,724 $ (12,590) $ 254 $ — $ 254 $ — 9/23/2011 n/a 400 Grove Street 1,450 1,009 1,813 — 1,009 1,813 2,822 (272) 6/14/2016 5-30 8 Octavia Street 1,500 728 1,847 612 728 2,459 3,187 (323) 6/14/2016 5-30 Fulton Shops 2,200 1,187 3,254 2 1,187 3,256 4,443 (531) 7/27/2016 5-30 450 Hayes 3,650 2,324 5,009 367 2,324 5,376 7,700 (771) 12/22/2016 5-30 388 Fulton 2,300 1,109 2,943 319 1,112 3,259 4,371 (510) 01/04/2017 5-30 Silver Lake 6,900 5,747 6,646 398 5,760 7,031 12,791 (1,182) 01/11/2017 5-30 Wilshire Property 12,510 12,893 613 10,690 13,026 11,170 24,196 (208) 03/08/2016 5-30 Total $ 30,510 $ 27,117 $ 32,849 $ (202) $ 25,400 $ 34,364 $ 59,764 $ (3,797) (1) The cost capitalized subsequent to acquisition may include negative balances resulting from the write-off and impairment of real estate assets, and parcel sales. (2) The aggregate net tax basis of land and buildings, excluding properties held for sale, for federal income tax purposes is $62.5 million. (3) Buildings and building improvements are depreciated over their useful lives as shown. Tenant improvements are amortized over the life of the related lease, which with our current portfolio can vary from 1 year to over 15 years. (in thousands) Year Ended December 31, 2020 2019 Real Estate: Balance at the beginning of the year $ 38,532 $ 48,393 Improvements 565 683 Dispositions (2) — Impairments (4,447) — Balances associated with changes in reporting presentation (1) 25,116 (10,544) Balance at the end of the year $ 59,764 $ 38,532 Accumulated Depreciation: Balance at the beginning of the year $ 3,308 $ 3,917 Depreciation expense 1,154 1,100 Dispositions (2) — Balances associated with changes in reporting presentation (1) (663) (1,709) Balance at the end of the year $ 3,797 $ 3,308 (1) The balances associated with changes in reporting presentation represent real estate and accumulated depreciation reclassified as assets held for sale. See accompanying report of independent registered public accounting firm. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-K and Regulation S-X. The consolidated financial statements include the accounts of the Company, the OP, their direct and indirect owned subsidiaries, and the accounts of joint ventures that are determined to be variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows have been included. The Company evaluates the need to consolidate joint ventures and variable interest entities based on standards set forth in ASC Topic 810, Consolidation (“ASC 810”). In determining whether the Company has a controlling interest in a joint venture or a variable interest entity and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the partners/members, as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. As of December 31, 2020 and 2019, the Company held variable interests in two variable interest entities and consolidated those entities. Refer to Note 4. “Variable Interest Entities” for additional information. |
NonControllingInterests | Non-Controlling Interests The Company’s non-controlling interests are comprised of common units in the OP (“Common Units”). The Company accounts for non-controlling interests in accordance with ASC 810. In accordance with ASC 810, the Company reports non-controlling interests in subsidiaries within equity in the consolidated financial statements, but separate from stockholders’ equity. Net income attributable to non-controlling interests is presented as a reduction from net income in calculating net income attributable to common stockholders on the consolidated statement of operations. Acquisitions or dispositions of non-controlling interests that do not result in a change of control are accounted for as equity transactions. In addition, ASC 810 requires that a parent company recognize a gain or loss in the Company’s results of operations when a subsidiary is deconsolidated upon a change in control. In accordance with ASC 480-10, Distinguishing Liabilities from Equity , non-controlling interests that are determined to be redeemable are carried at their fair value or redemption value as of the balance sheet date and reported as liabilities or temporary equity depending on their terms. The Company periodically evaluates individual non-controlling interests for the ability to continue to recognize the non-controlling interest as permanent equity in the consolidated balance sheets. Any non-controlling interest that fails to qualify as permanent equity will be reclassified as liabilities or temporary equity. All non-controlling interests at December 31, 2020 and 2019, qualified as permanent equity. |
Use of Estimates, Policy | Use of Estimates The preparation of the Company’s consolidated financial statements requires significant management judgments, assumptions and estimates about matters that are inherently uncertain. These judgments affect the reported amounts of assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in the Company’s consolidated financial statements, and actual results could differ from the estimates or assumptions used by management. Additionally, other companies may utilize different estimates that may impact the comparability of the Company’s consolidated results of operations to those of companies in similar businesses. The Company considers significant estimates to include the carrying amounts and recoverability of investments in real estate, impairments, real estate acquisition purchase price allocations, allowance for doubtful accounts and straight-line rent receivable, estimated useful lives to determine depreciation and amortization and fair value determinations, among others. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents represent current bank accounts and other bank deposits free of encumbrances and having maturity dates of three months or less from the respective dates of deposit. The Company limits cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk in cash. Restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, debt service and leasing costs held by lenders. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the consolidated balance sheets that sum to the total of the same such amounts shown on the consolidated statement of cash flows (amounts in thousands): December 31, 2020 December 31, 2019 Cash and cash equivalents $ 1,816 $ 6,119 Restricted cash 806 1,122 Total cash, cash equivalents, and restricted cash $ 2,622 $ 7,241 |
Revenue | Revenue Recognition Revenues include minimum rents, expense recoveries and percentage rental payments. Minimum rents are recognized on an accrual basis over the terms of the related leases on a straight-line basis when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased property. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. For leases with minimum scheduled rent increases, the Company recognizes income on a straight-line basis over the lease term when collectability is reasonably assured. Recognizing rental income on a straight-line basis for leases results in recognized revenue amounts which differ from those that are contractually due from tenants on a cash basis. If the Company determines the collectability of straight-line rents is not reasonably assured, the Company limits future recognition to amounts contractually owed and paid, and, when appropriate, establishes an allowance for estimated losses. The Company maintains an allowance for doubtful accounts, including an allowance for straight-line rent receivables, for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments. The Company monitors the liquidity and creditworthiness of its tenants on an ongoing basis. For straight-line rent amounts, the Company’s assessment is based on amounts estimated to be recoverable over the term of the lease. The Company’s straight-line rent receivable (excluding properties held for sale), which is included in tenant receivables, net, on the consolidated balance sheets, was approximately $0.6 million at each December 31, 2020 and 2019. Certain leases contain provisions that require the payment of additional rents based on the respective tenants’ sales volume (contingent or percentage rent) and substantially all contain provisions that require reimbursement of the tenants’ allocable real estate taxes, insurance and common area maintenance costs (“CAM”). Revenue based on percentage of tenants’ sales is recognized only after the tenant exceeds its sales breakpoint. Revenue from tenant reimbursements of taxes, insurance and CAM is recognized in the period that the applicable costs are incurred in accordance with the lease agreement. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which was added to the ASC under Topic 606 (“ASC 606”) (“ASU 2014-09”). ASC 606 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. As the Company’s revenues are primarily generated through leasing arrangements, and the Company has elected the lessor practical expedient to not separate common area maintenance and reimbursement of real estate taxes from the associated lease for all existing and new leases under ASC 842, the Company’s revenues fall outside the scope of this standard. As part of ASU 2014-09, ASC 610-20, Gains and Losses from Derecognition of Nonfinancial Assets , (“ASC 610-20”) was issued. ASC 610-20 provided guidance for recognizing gains and losses from the transfer of nonfinancial assets, which includes the sale of real estate. In February 2017, the FASB issued ASU No. 2017-05, Other Income-Gains and Losses for the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05”). ASU 2017-05 amends the guidance on nonfinancial assets in ASC 610-20. The amendments clarify that (i) a financial asset is within the scope of ASC 610-20 if it meets the definition of an in-substance nonfinancial asset and may include nonfinancial assets transferred within a legal entity to a counter-party, (ii) an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counter-party and de-recognize each asset when a counter-party obtains control of it, and (iii) an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations. Further, ASU 2017-05 provides guidance on accounting for partial sales of nonfinancial assets. The Company adopted the provisions of ASC 610-20 effective January 1, 2018, for gains on sale of real estate, and recognizes any gains at the time control of a property is transferred and when it is probable that substantially all of the related consideration will be collected. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires entities to recognize lease assets and lease liabilities on the consolidated balance sheet and disclose key information about leasing arrangements. The guidance retains a distinction between finance leases and operating leases. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous guidance. However, the principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases should be recognized in the statement of financial position. The accounting applied by a lessor is largely unchanged from that applied under ASC Topic 840, Leases (“ASC 840”). Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using the modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply under ASC Topic 842, Leases (“ASC 842”). The amendments in this guidance are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASU 2016-02 (as amended by subsequent ASUs) effective January 1, 2019, utilizing the practical expedients described in ASU 2018-11. The Company has elected the lessor practical expedient to not separate common area maintenance and reimbursement of real estate taxes from the associated lease for all existing and new leases as the timing and pattern of payments and associated lease payments are the same. The timing of revenue recognition remains the same for the Company’s existing leases and new leases. Revenues related to the Company’s leases continue to be reported on one line in the presentation within the statement of operations as a result of electing this lessor practical expedient. The Company continues to capitalize its direct leasing costs. These costs are incurred as a result of obtaining new leases, and renewing leases, and are paid to the Company’s Advisor. Additionally, the Company is not a lessee of real estate or equipment, as it is externally managed by its Advisor. |
Valuation of Accounts Receivable | Valuation of Accounts Receivable The Company makes estimates of the collectability of its tenant receivables related to base rents, including deferred rents receivable, expense reimbursements and other revenue or income. The Company analyzes tenant receivables, deferred rent receivable, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In addition, with respect to tenants in bankruptcy, the Company will make estimates of the expected recovery of pre-petition and post-petition claims in assessing the estimated collectability of the related receivable. In some cases, the ultimate resolution of these claims can exceed one year. When a tenant is in bankruptcy, the Company will record a bad debt reserve for the tenant’s receivable balance and generally will not recognize subsequent rental revenue until cash is received or until the tenant is no longer in bankruptcy and has the ability to make rental payments. The increase in bad debt receivable as of December 31, 2020, was primarily due to tenants who are in default under their leases. |
Concentration Risk, Credit Risk, Policy | Concentration of Credit Risk A concentration of credit risk arises in the Company’s business when a tenant occupies a substantial amount of space in properties owned by the Company or accounts for a substantial amount of annual revenue. In that event, if the tenant suffers a significant downturn in its business, it may become unable to make its contractual rent payments to the Company, exposing the Company to potential losses in rental revenue, expense recoveries, and percentage rent. Generally, the Company does not obtain security deposits from the nationally-based or regionally-based tenants in support of their lease obligations to the Company. The Company regularly monitors its tenant base to assess potential concentrations of credit risk. As of December 31, 2020, in other than the Company’s properties classified as held for sale, 3705 Group, LLC and La Conq, LLC each accounted for more than 10% of the Company’s annualized minimum rent. As of December 31, 2020, $0.3 million was outstanding from 3705 Group, LLC. There were no amounts outstanding from La Conq, LLC. As of December 31, 2019, in other than the Company’s properties classified as held for sale, 3705 Group, Connor Concepts, Inc., and A Mano each accounted for more than 10% of the Company’s annualized minimum rent. As of December 31, 2019, $35 thousand and $10 thousand was outstanding from 3705 Group, LLC and A Mano, respectively. There were no amounts outstanding from Connor Concepts, Inc. |
Segment Reporting, Policy | Reportable Segments ASC 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. The Company has one reportable segment, income-producing retail properties, which consists of activities related to investing in real estate. The retail properties are geographically diversified throughout the United States, and the Company evaluates operating performance on an overall portfolio level. |
Investments in Real Estate | Investments in Real Estate The Company applies the provisions of ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”) to account for property acquisitions. ASU No. 2017-01 clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework establishes a screen for determining whether an integrated set of assets and activities is a business and narrows the definition of a business, which is expected to result in fewer transactions being accounted for as business combinations. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. Evaluation of business combination or asset acquisition: The Company evaluates each acquisition of real estate to determine if the integrated set of assets and activities acquired meet the definition of a business and need to be accounted for as a business combination. If either of the following criteria is met, the integrated set of assets and activities acquired would not qualify as a business: • Substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group of similar identifiable assets; or • The integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs (i.e. revenue generated before and after the transaction). An acquired process is considered substantive if: • The process includes an organized workforce (or includes an acquired contract that provides access to an organized workforce), that is skilled, knowledgeable, and experienced in performing the process; • The process cannot be replaced without significant cost, effort, or delay; or • The process is considered unique or scarce. Generally, the Company expects that acquisitions of real estate will not meet the revised definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related intangible assets), or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. In asset acquisitions, the purchase consideration, including acquisition costs, is allocated to the individual assets acquired and liabilities assumed on a relative fair value basis. As a result, asset acquisitions do not result in the recognition of goodwill or a bargain purchase gain. Depreciation and amortization is computed using a straight-line method over the estimated useful lives of the assets as follows: Years Buildings and improvements 5 - 30 years Tenant improvements 1 - 15 years Tenant improvement costs recorded as capital assets are depreciated over the tenant’s remaining lease term, which the Company has determined approximates the useful life of the improvement. Expenditures for ordinary maintenance and repairs are expensed to operations as incurred. Significant renovations and improvements that improve or extend the useful lives of assets are capitalized. Acquisition costs related to asset acquisitions are capitalized in the consolidated balance sheets. |
Properties Under Development, Policy | Properties Under Development The initial cost of properties under development includes the acquisition cost of the property, direct development costs and borrowing costs directly attributable to the development. Borrowing costs associated with direct expenditures on properties under development are capitalized. The amount of capitalized borrowing costs is determined by reference to borrowings specific to the project, where relevant. Borrowing costs are capitalized from the commencement of the development until the date of practical completion. Practical completion is when the property is capable of operating in the manner intended by management. Capitalization of borrowing costs is suspended if there are prolonged periods when development activity is interrupted. Capitalized costs are reduced by any profits from incidental operations. Interest on projects is based on interest rates in place during the development period, and is capitalized until the project is ready for its intended use. The amount of interest capitalized during the years ended December 31, 2020 and 2019, was approximately $2.1 million and $2.7 million, respectively. |
Impairment or Disposal of Long-Lived Assets, Policy | Impairment of Long-lived Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its investments in real estate and related intangible assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of the real estate and related intangible assets through its undiscounted future cash flows (excluding interest) and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the investments in real estate and related intangible assets. Key inputs that the Company estimates in this analysis include projected rental rates, capital expenditures, property sale capitalization rates, and expected holding period of the property. The Company evaluates its equity investments for impairment in accordance with ASC 320, Investments – Debt and Securities (“ASC 320”). ASC 320 provides guidance for determining when an investment is considered impaired, whether impairment is other-than-temporary, and measurement of an impairment loss. The Company continually monitors its properties under development for impairment. Estimates of future cash flows used to test the recoverability of properties under development are based on their expected service potential when development is substantially complete. Those estimates include cash flows associated with all future expenditures necessary to develop the properties under development, including interest payments that will be capitalized as part of the cost of the properties under development. The Company recorded an impairment loss during the year ended December 31, 2020 of approximately $13.4 million related to the development project and the operating property it owns through joint ventures, which was included in the Company’s consolidated statement of operations. The Company did not record any impairment losses during the year ended December 31, 2019. |
Assets Held For Sale | Assets Held for Sale When certain criteria are met, long-lived assets are classified as held for sale and are reported at the lower of their carrying value or their fair value, less costs to sell, and are no longer depreciated. Refer to Note 3. “Real Estate Investments” for a discussion of property sales. |
Fair Value Measurement, Policy | Fair Value Measurements Under GAAP, the Company is required to measure or disclose certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available for inputs that are significant to the fair value measurement. When available, the Company utilizes quoted market prices or other observable inputs (Level 2 inputs), such as interest rates or yield curves, from independent third-party sources to determine fair value and classify such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to use significant judgment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third-party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for an asset owned by it to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and external appraisals) and establishes a fair value by assigning weights to the various valuation sources. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities when traded as assets; or (ii) a present value technique that considers the future cash flows based on contractual obligations discounted by observed or estimated market rates of comparable liabilities. The use of contractual cash flows with regard to amount and timing significantly reduces the judgment applied in arriving at fair value. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The Company considers the following factors to be indicators of an inactive market: (1) there are few recent transactions; (2) price quotations are not based on current information; (3) price quotations vary substantially either over time or among market makers (for example, some brokered markets); (4) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability; (5) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability; (6) there is a wide bid-ask spread or significant increase in the bid-ask spread; (7) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities; and (8) little information is released publicly (for example, a principal-to-principal market). The Company considers the following factors to be indicators of non-orderly transactions: (1) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions; (2) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant; (3) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced); and (4) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. |
Deferred Financing Costs, Policy | Deferred Financing Costs Deferred financing costs represent commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing. These costs are amortized over the terms of the respective financing agreements using the straight-line method which approximates the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financings that do not close are expensed in the period in which it is determined that the financing will not close. The Company presents deferred financing costs, net of accumulated amortization, as a contra-liability that reduces the carrying amount of the associated note payable, rather than as a deferred asset. Deferred financing costs related to a line-of-credit arrangement are presented on the balance sheet as a deferred asset, regardless of whether there were any outstanding borrowings at period-end. |
Income Tax, Policy | Income Taxes The Company has elected to be taxed as a REIT under the Internal Revenue Code. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income to stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax on income that it distributes as dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially and adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes that it is organized and operates in such a manner as to qualify for treatment as a REIT. Even if the Company qualifies as a REIT, it may be subject to certain state or local income taxes, and to U.S. federal income and excise taxes on its undistributed income. The Company evaluates tax positions taken in the consolidated financial statements under the interpretation for accounting for uncertainty in income taxes. As a result of this evaluation, the Company may recognize a tax benefit from an uncertain tax position only if it is “more-likely-than-not” that the tax position will be sustained on examination by taxing authorities. When necessary, deferred income taxes are recognized in certain taxable entities. Deferred income tax is generally a function of the period’s temporary differences (items that are treated differently for tax purposes than for financial reporting purposes). A valuation allowance for deferred income tax assets is provided if all or some portion of the deferred income tax asset may not be realized. Any increase or decrease in the valuation allowance is generally included in deferred income tax expense. The Company’s tax returns remain subject to examination and consequently, the taxability of the distributions is subject to change. |
Earnings Per Share, Policy | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed after adjusting the basic EPS computation for the effect of potentially dilutive securities outstanding during the period. The effect of non-vested shares, if dilutive, is computed using the treasury stock method. The Company accounts for non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) as participating securities, which are included in the computation of earnings per share pursuant to the two-class method. The Company’s excess of distributions over earnings related to participating securities are shown as a reduction in income (loss) attributable to common stockholders in the Company’s computation of EPS. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The FASB issued the following ASUs, which could have potential impact to the Company’s consolidated financial statements: In April 2020, the FASB issued a Q&A allowing for reporting entities to make an accounting policy election evaluate whether certain relief provided by a lessor in response to the COVID-19 pandemic is a lease modification. An entity that elects not to evaluate whether a concession is a modification can then elect to apply the modification guidance to that relief, or account for the concession as if it were contemplated as part of the existing contract. This election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. The elections should be applied consistently to leases with similar characteristics and in similar circumstances. The Company adopted this guidance during the three months ended June 30, 2020. The Company elected to account for the concession as if it were contemplated as part of the existing contract. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019. The Company adopted ASU 2018-13 effective January 1, 2020. The adoption of ASU 2018-13 did not have an impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”). ASU 2016-13 requires a financial asset, measured at amortized cost basis to be presented at the net amount expected to be collected. ASU 2016-13 was effective for fiscal years beginning after December 15, 2019, with adoption permitted for fiscal years beginning after December 15, 2018. Adjustments resulting from adopting ASU 2016-13 shall be applied through a cumulative-effect adjustment to retained earnings. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates (“ASU 2019-10”). ASU 2019-10 extended the mandatory effective date for smaller reporting companies to beginning after December 15, 2022. The adoption of Financial Instruments - Credit Losses is not expected to have an impact on the Company’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the consolidated balance sheets that sum to the total of the same such amounts shown on the consolidated statement of cash flows (amounts in thousands): December 31, 2020 December 31, 2019 Cash and cash equivalents $ 1,816 $ 6,119 Restricted cash 806 1,122 Total cash, cash equivalents, and restricted cash $ 2,622 $ 7,241 |
Property, Plant and Equipment | Depreciation and amortization is computed using a straight-line method over the estimated useful lives of the assets as follows: Years Buildings and improvements 5 - 30 years Tenant improvements 1 - 15 years |
REAL ESTATE INVESTMENTS REAL _2
REAL ESTATE INVESTMENTS REAL ESTATE INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Real Estate [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The Company’s consolidated statements of operations include net operating income for the years ended December 31, 2020 and 2019, related to Topaz Marketplace as follows (amounts in thousands): Year Ended 2020 2019 Operating income (loss) $ (6) $ 555 |
Business Acquisition, Pro Forma Information [Table Text Block] | The pro forma financial information is presented for information purposes only, and may not be indicative of what actual results of operations would have been had the transaction occurred at the beginning of 2020 and 2019, respectively, nor does it purport to represent results of operations for future periods (amounts in thousands, except per share amounts): (Pro Forma) Year Ended 2020 2019 Rental and reimbursement revenues $ 2,513 $ 2,898 Net income (loss) (15,502) 530 Net income (loss) attributable to common stockholders $ (15,194) $ 519 Net earnings (loss) per share, attributable to common shares - basic and diluted $ (1.41) $ 0.05 |
Disclosure of Long Lived Assets Held-for-sale | The major classes of assets and liabilities related to assets held for sale included in the consolidated balance sheets are as follows (amounts in thousands): December 31, 2020 2019 ASSETS Investments in real estate Land $ 1,416 $ 1,680 Building and improvements 2,224 7,966 Tenant improvements 141 898 3,781 10,544 Accumulated depreciation (662) (1,709) Investments in real estate, net 3,119 8,835 Tenant receivables, net — 108 Lease intangibles, net 105 273 Assets held for sale $ 3,224 $ 9,216 LIABILITIES Notes payable $ — $ 8,927 Below-market lease intangibles, net — 12 Liabilities related to assets held for sale $ — $ 8,939 Amounts above are being presented at their carrying value, which the Company believes to be lower than their estimated fair value less costs to sell. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table reflects the aggregate assets and liabilities of the Sunset & Gardner Joint Venture and the Wilshire Joint Venture, which were consolidated by the Company, as of December 31, 2020 and 2019 (amounts in thousands): December 31, 2020 2019 ASSETS Investments in real estate Land $ 13,026 $ — Building and improvements 10,624 — Tenant improvements 547 — 24,197 — Accumulated depreciation (209) — Investments in real estate, net 23,988 — Properties under development and development costs: Land 12,958 25,851 Buildings — 554 Development costs 2,441 20,813 Properties under development and development costs 15,399 47,218 Cash, cash equivalents and restricted cash 340 2,154 Prepaid expenses and other assets, net 11 7 Lease intangibles, net 73 4 TOTAL ASSETS (1) $ 39,811 $ 49,383 LIABILITIES Notes payable, net (2) $ 20,868 $ 16,713 Accounts payable and accrued expenses 212 1,702 Amounts due to affiliates — 111 Other liabilities 33 5 TOTAL LIABILITIES $ 21,113 $ 18,531 (1) The assets of the Sunset & Gardner Joint Venture and Wilshire Joint Venture can be used only to settle obligations of the respective consolidated joint ventures. (2) As of December 31, 2020 and 2019, includes reclassification of approximately $0.3 million and $0.5 million, respectively, of deferred financing costs, net, as a contra-liability. The creditors of the consolidated joint ventures do not have recourse to the general credit of the Company. The notes payable of the Wilshire Joint Venture is partially guaranteed by the Company, refer to Note 7, “Notes Payable, Net”. The notes payable of the Sunset & Gardner Joint Venture is not guaranteed by the Company. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Leased Assets [Line Items] | |
Operating Lease, Lease Income [Table Text Block] | The following table presents the components of income from real estate operations for the years ended December 31, 2020 and 2019 (amounts in thousands): Year Ended 2020 2019 Lease income - operating leases $ 2,040 $ 2,983 Variable lease income (1) 592 909 Rental and reimbursements income $ 2,632 $ 3,892 (1) Primarily includes tenant reimbursements for real estate taxes, insurance and common area maintenance. |
Schedule of Future Minimum Rental Receivable For Operating Leases | As of December 31, 2020, the future minimum rental income from the Company’s wholly-owned properties under non-cancelable operating leases, excluding properties classified as held for sale, was as follows (amounts in thousands): 2021 $ 1,711 2022 1,803 2023 1,828 2024 1,850 2025 1,638 Thereafter 3,434 Total $ 12,264 |
LEASE INTANGIBLES AND BELOW-M_2
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Acquired Lease Intangibles and Below Market Lease Liabilities | As of December 31, 2020 and 2019, the Company’s acquired lease intangibles and below-market lease liabilities, excluding intangibles and below-market lease liabilities classified as held for sale, were as follows (amounts in thousands): Lease Intangibles Below-Market Lease Liabilities December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Cost $ 1,892 $ 2,084 $ (389) $ (492) Accumulated amortization (716) (763) 142 196 Total $ 1,176 $ 1,321 $ (247) $ (296) |
Amortization Of Finite Lease Intangibles and Below-Market Lease Liabilities | The Company’s amortization of lease intangibles and below-market lease liabilities for the years ended December 31, 2020 and 2019, were as follows (amounts in thousands): Lease Intangibles Below-Market Lease Liabilities Year Ended Year Ended 2020 2019 2020 2019 Amortization $ (236) $ (329) $ 49 $ 62 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The scheduled future amortization of lease intangibles and below-market lease liabilities, excluding intangibles and below-market lease liabilities classified as held for sale, as of December 31, 2020, was as follows (amounts in thousands): Lease Intangibles Below-Market Lease Intangibles 2021 $ 191 $ (34) 2022 191 (34) 2023 188 (34) 2024 178 (34) 2025 131 (25) Thereafter 297 (86) Total $ 1,176 $ (247) |
NOTES PAYABLE, NET (Tables)
NOTES PAYABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of maturities for notes payable outstanding | The following is a schedule of future principal payments for all of the Company’s notes payable outstanding as of December 31, 2020 (amounts in thousands): 2021 $ 8,700 2022 12,510 2023 18,000 Total (1) $ 39,210 (1) Total future principal payments reflect actual amounts due to creditors, and excludes reclassification of $0.9 million deferred financing costs, net. |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Share Redemption Program | The following table summarizes share redemption activity during the years ended December 31, 2020 and 2019 (amounts in thousands, except shares): Year Ended 2020 2019 Shares of common stock redeemed 19,907 121,297 Purchase price $ 117 $ 722 |
Distributions declared and paid | The following table set forth the quarterly distributions declared to the Company’s common stockholders and Common Unit holders for the year ended December 31, 2019 (amounts in thousands, except per share amounts): Distribution Record Distribution Distribution Per Share of Common Stock / Total Common Total Common Total First Quarter 2019 3/31/2019 4/30/2019 $ 0.06 $ 651 $ 14 $ 665 Second Quarter 2019 6/30/2019 7/31/2019 0.06 648 14 662 Third Quarter 2019 9/30/2019 10/31/2019 0.06 646 13 659 Fourth Quarter 2019 12/31/2019 1/31/2020 0.02 215 5 220 Total $ 2,160 $ 46 $ 2,206 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Company's basic and diluted (loss)earnings per share | The following table sets forth the computation of the Company’s basic and diluted earnings per share for the years ended December 31, 2020 and 2019 (amounts in thousands, except shares and per share amounts): Year Ended 2020 2019 Numerator - basic and diluted Net income (loss) $ (15,508) $ 138 Net income (loss) attributable to non-controlling interests (308) 3 Net income (loss) attributable to common shares $ (15,200) $ 135 Denominator - basic and diluted Basic weighted average common shares 10,744,570 10,818,686 Common Units (1) — — Diluted weighted average common shares 10,744,570 10,818,686 Earnings (loss) per common share - basic and diluted Net earnings (loss) attributable to common shares $ (1.41) $ 0.01 (1) The effect of 217,475 convertible Common Units pursuant to the redemption rights outlined in the Company’s registration statement on Form S-11 have not been included as they would not be dilutive. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
Related Party Transactions | The following table sets forth the Advisor related party costs incurred and payable by the Company for the periods presented (amounts in thousands): Incurred Payable as of Year Ended December 31, Expensed 2020 2019 2020 2019 Asset management fees $ 636 $ 647 $ — $ — Reimbursement of operating expenses 23 35 — — Property management fees 81 126 9 7 Disposition fees 157 2 — — Total $ 897 $ 810 $ 9 $ 7 Capitalized Acquisition fees $ 18 $ 46 $ — $ — Leasing fees 113 — — — Legal leasing fees 42 — — — Construction management fees 138 174 2 111 Financing coordination fees 44 179 — 22 Total $ 355 $ 399 $ 2 $ 133 |
SEC Schedule, Article 12-28, _2
SEC Schedule, Article 12-28, Real Estate and Accumulated Depreciation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule of Real Estate Properties | (amounts in thousands) Initial Cost to Company Cost Capitalized Subsequent to Acquisition (1) Gross Amount of Which Carried at Life on which Depreciation in Latest Statement of Operations is Computed (3) Encumbrances Land Building Land Building Total (2) Accumulated Depreciation Acquisition Date Topaz Marketplace $ — $ 2,120 $ 10,724 $ (12,590) $ 254 $ — $ 254 $ — 9/23/2011 n/a 400 Grove Street 1,450 1,009 1,813 — 1,009 1,813 2,822 (272) 6/14/2016 5-30 8 Octavia Street 1,500 728 1,847 612 728 2,459 3,187 (323) 6/14/2016 5-30 Fulton Shops 2,200 1,187 3,254 2 1,187 3,256 4,443 (531) 7/27/2016 5-30 450 Hayes 3,650 2,324 5,009 367 2,324 5,376 7,700 (771) 12/22/2016 5-30 388 Fulton 2,300 1,109 2,943 319 1,112 3,259 4,371 (510) 01/04/2017 5-30 Silver Lake 6,900 5,747 6,646 398 5,760 7,031 12,791 (1,182) 01/11/2017 5-30 Wilshire Property 12,510 12,893 613 10,690 13,026 11,170 24,196 (208) 03/08/2016 5-30 Total $ 30,510 $ 27,117 $ 32,849 $ (202) $ 25,400 $ 34,364 $ 59,764 $ (3,797) (1) The cost capitalized subsequent to acquisition may include negative balances resulting from the write-off and impairment of real estate assets, and parcel sales. (2) The aggregate net tax basis of land and buildings, excluding properties held for sale, for federal income tax purposes is $62.5 million. (3) Buildings and building improvements are depreciated over their useful lives as shown. Tenant improvements are amortized over the life of the related lease, which with our current portfolio can vary from 1 year to over 15 years. |
Schedule III Real Estate and Accumulated Depreciation | (in thousands) Year Ended December 31, 2020 2019 Real Estate: Balance at the beginning of the year $ 38,532 $ 48,393 Improvements 565 683 Dispositions (2) — Impairments (4,447) — Balances associated with changes in reporting presentation (1) 25,116 (10,544) Balance at the end of the year $ 59,764 $ 38,532 Accumulated Depreciation: Balance at the beginning of the year $ 3,308 $ 3,917 Depreciation expense 1,154 1,100 Dispositions (2) — Balances associated with changes in reporting presentation (1) (663) (1,709) Balance at the end of the year $ 3,797 $ 3,308 (1) The balances associated with changes in reporting presentation represent real estate and accumulated depreciation reclassified as assets held for sale. |
ORGANIZATION AND BUSINESS (Deta
ORGANIZATION AND BUSINESS (Details Textual) ft² in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)ft² | Dec. 31, 2019USD ($) | |
Real Estate Properties [Line Items] | ||
Number of Real Estate Properties | 7 | |
Net Rentable Area | ft² | 43 | |
Number of States in which Entity Operates | 2 | |
Percent of Real Estate Properties Leased | 79.00% | |
Restricted Cash | $ | $ 806 | $ 1,122 |
Cash and Cash Equivalents | $ | $ 1,816 | $ 6,119 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Real Estate Properties [Line Items] | ||
Number of Real Estate Properties | 1 | |
Wilshire Joint Venture [Member] | ||
Real Estate Properties [Line Items] | ||
Net Rentable Area | ft² | 12 | |
Percent of Real Estate Properties Leased | 62.00% | |
Strategic Realty Trust [Member] | ||
Real Estate Properties [Line Items] | ||
Partnership Interest Ownership Percentage | 98.00% | 98.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Cash and Cash Equivalents | $ 1,816 | $ 6,119 | |
Restricted Cash | 806 | 1,122 | |
Cash, cash equivalents and restricted cash | $ 2,622 | $ 7,241 | $ 3,347 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REVENUE RECOGNITION (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue Recognition [Abstract] | ||
Deferred Rent Receivables, Net | $ 0.6 | $ 0.6 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONCENTRATION OF CREDIT RISK (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
3705 Group, LLC | ||
Concentration Risk [Line Items] | ||
Fair Value, Concentration of Risk, Accounts Receivable | $ 300 | $ 35 |
La Conq, LLC | ||
Concentration Risk [Line Items] | ||
Fair Value, Concentration of Risk, Accounts Receivable | $ 0 | |
A Mano | ||
Concentration Risk [Line Items] | ||
Fair Value, Concentration of Risk, Accounts Receivable | 10 | |
Connor Concepts | ||
Concentration Risk [Line Items] | ||
Fair Value, Concentration of Risk, Accounts Receivable | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS IN REAL ESTATE (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum [Member] | Building and Building Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum [Member] | tenant improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Maximum [Member] | Building and Building Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Maximum [Member] | tenant improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PROPERTIES UNDER DEVELOPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Interest Costs Capitalized | $ 2.1 | $ 2.7 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES IMPAIRMENTS OF LONG-LIVED ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Loss on impairment of real estate and property under development | $ 13,383 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INCOME TAXES (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
RequiredDistributionRateToMaintainREITStatus | 90.00% |
REAL ESTATE INVESTMENTS SALE OF
REAL ESTATE INVESTMENTS SALE OF PROPERTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Feb. 10, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net gain on disposal of real estate | $ 947 | $ 13 | |
Operating Income (Loss) | (16,410) | (1,298) | |
Topaz Marketplace [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales Price | $ 10,500 | ||
Net gain on disposal of real estate | 900 | ||
Operating Income (Loss) | $ (6) | $ 555 |
REAL ESTATE INVESTMENTS PRO FOR
REAL ESTATE INVESTMENTS PRO FORMA (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Rental and reimbursement revenues | $ 2,632 | $ 3,892 |
Net income (loss) attributable to common shares | $ (15,200) | $ 135 |
Earnings (loss) per common share - basic and diluted | $ (1.41) | $ 0.01 |
Pro Forma [Member] | ||
Rental and reimbursement revenues | $ 2,513 | $ 2,898 |
Net income (loss) | (15,502) | 530 |
Net income (loss) attributable to common shares | $ (15,194) | $ 519 |
Earnings (loss) per common share - basic and diluted | $ (1.41) | $ 0.05 |
REAL ESTATE INVESTMENTS ASSETS
REAL ESTATE INVESTMENTS ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Operating Loss | $ (16,410) | $ (1,298) |
Land | 25,400 | 13,536 |
Building and improvements | 32,165 | 23,732 |
Tenant improvements | 2,199 | 1,264 |
Real Estate Investment Property, at Cost | 59,764 | 38,532 |
Accumulated depreciation | (3,797) | (3,308) |
Investments in real estate, net | 55,967 | 35,224 |
Other receivables, net | 566 | 727 |
Total | 1,176 | 1,321 |
Assets held for sale | 3,224 | 9,216 |
Notes payable, net | 38,339 | 33,927 |
Below-market lease liabilities, net | 247 | 296 |
Liabilities related to assets held for sale | 0 | 8,939 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Operating Loss | 100 | 200 |
Land | 1,416 | 1,680 |
Building and improvements | 2,224 | 7,966 |
Tenant improvements | 141 | 898 |
Real Estate Investment Property, at Cost | 3,781 | 10,544 |
Accumulated depreciation | (662) | (1,709) |
Investments in real estate, net | 3,119 | 8,835 |
Other receivables, net | 0 | 108 |
Total | 105 | 273 |
Assets held for sale | 3,224 | 9,216 |
Notes payable, net | 0 | 8,927 |
Below-market lease liabilities, net | 0 | 12 |
Liabilities related to assets held for sale | $ 0 | $ 8,939 |
VARIABLE INTEREST ENTITIES SUNS
VARIABLE INTEREST ENTITIES SUNSET & GARDER (Details) - USD ($) $ in Thousands | Jan. 28, 2016 | Jan. 07, 2016 | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||||
Payments to Acquire Interest in Joint Venture | $ 0 | $ 38 | ||
Sunset and Gardner Joint Venture [Member] | ||||
Variable Interest Entity [Line Items] | ||||
CapitalInterestPercentageInJointVenture | 100.00% | |||
ProfitSharingRatioOfJointVenture | 50.00% | |||
Payments to Acquire Interest in Joint Venture | $ 5,300 | |||
Proceeds from Loan Originations | $ 10,700 | |||
Payments to Acquire Real Estate | $ 13,000 | |||
Sunset and Gardner Joint Venture [Member] | Subsequent Contribution [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Payments to Acquire Interest in Joint Venture | $ 7,400 | |||
Sunset and Gardner Joint Venture [Member] | Sunset Gardner LA L L C Member | ||||
Variable Interest Entity [Line Items] | ||||
ProfitSharingRatioOfJointVenture | 50.00% | |||
Sunset and Gardner Joint Venture [Member] | Strategic Realty Trust [Member] | ||||
Variable Interest Entity [Line Items] | ||||
ProfitSharingRatioOfJointVenture | 50.00% | |||
Sunset and Gardner Joint Venture [Member] | Minimum [Member] | Subsequent Contribution [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Payments to Acquire Interest in Joint Venture | $ 700 |
VARIABLE INTEREST ENTITIES 3032
VARIABLE INTEREST ENTITIES 3032 WILSHIRE (Details) - USD ($) $ in Thousands | Mar. 08, 2016 | Mar. 07, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 05, 2016 | Dec. 14, 2015 |
Variable Interest Entity [Line Items] | ||||||
Payments to Acquire Interest in Joint Venture | $ 0 | $ 38 | ||||
Wilshire Joint Venture [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Deposits Assets, Current | $ 100 | $ 500 | ||||
Payments to Acquire Real Estate | $ 13,500 | $ 5,700 | ||||
CapitalInterestPercentageInJointVenture | 100.00% | |||||
ProfitSharingRatioOfJointVenture | 50.00% | |||||
Proceeds from Loan Originations | $ 8,500 | |||||
Wilshire Joint Venture [Member] | Subsequent Contribution [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Payments to Acquire Interest in Joint Venture | $ 7,800 | |||||
Wilshire Joint Venture [Member] | Strategic Realty Trust [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
ProfitSharingRatioOfJointVenture | 50.00% | |||||
Wilshire Joint Venture [Member] | 3032 Wilshire SM Member | ||||||
Variable Interest Entity [Line Items] | ||||||
ProfitSharingRatioOfJointVenture | 50.00% |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate Investment Property, Net [Abstract] | ||||
Land | $ 25,400 | $ 13,536 | ||
Building and improvements | 32,165 | 23,732 | ||
Tenant improvements | 2,199 | 1,264 | ||
Real Estate Investment Property, at Cost | 59,764 | 38,532 | ||
Accumulated depreciation | (3,797) | (3,308) | ||
Investments in real estate, net | 55,967 | 35,224 | ||
Properties under development and development costs: | ||||
Land | 12,958 | 25,851 | ||
Buildings | 0 | 554 | ||
Development costs | 2,441 | 20,813 | ||
Properties under development and development costs | 15,399 | 47,218 | ||
Cash, cash equivalents and restricted cash | 2,622 | 7,241 | $ 3,347 | |
Prepaid expenses and other assets, net | 106 | 114 | ||
Other receivables, net | 566 | 727 | ||
Total | 1,176 | 1,321 | ||
Total assets | [1] | 79,060 | 101,166 | |
LIABILITIES | ||||
Notes payable | 38,339 | 33,927 | ||
Accounts payable and accrued expenses | 674 | 2,404 | ||
Amounts due to affiliates | 11 | 140 | ||
Other liabilities | 134 | 180 | ||
TOTAL LIABILITIES (1) | [1] | 39,405 | 45,886 | |
Deferred Costs | 900 | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Real Estate Investment Property, Net [Abstract] | ||||
Land | 13,026 | 0 | ||
Building and improvements | 10,624 | 0 | ||
Tenant improvements | 547 | 0 | ||
Real Estate Investment Property, at Cost | 24,197 | 0 | ||
Accumulated depreciation | (209) | 0 | ||
Investments in real estate, net | 23,988 | 0 | ||
Properties under development and development costs: | ||||
Land | 12,958 | 25,851 | ||
Buildings | 0 | 554 | ||
Development costs | 2,441 | 20,813 | ||
Properties under development and development costs | 15,399 | 47,218 | ||
Cash, cash equivalents and restricted cash | 340 | 2,154 | ||
Prepaid expenses and other assets, net | 11 | 7 | ||
Total | 73 | 4 | ||
Total assets | [2] | 39,811 | 49,383 | |
LIABILITIES | ||||
Notes payable | [3] | 20,868 | 16,713 | |
Accounts payable and accrued expenses | 212 | 1,702 | ||
Amounts due to affiliates | 0 | 111 | ||
Other liabilities | 33 | 5 | ||
TOTAL LIABILITIES (1) | 21,113 | 18,531 | ||
Deferred Costs | $ 300 | $ 500 | ||
[1] | As of December 31, 2020 and December 31, 2019, includes approximately $39.8 million and $49.4 million, respectively, of assets related to consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities and approximately $21.1 million and $18.5 million, respectively, of liabilities of consolidated variable interest entities for which creditors do not have recourse to the general credit of the Company. Refer to Note 4. “Variable Interest Entities”. | |||
[2] | The assets of the Sunset & Gardner Joint Venture and Wilshire Joint Venture can be used only to settle obligations of the respective consolidated joint ventures. | |||
[3] | As of December 31, 2020 and 2019, includes reclassification of approximately $0.3 million and $0.5 million, respectively, of deferred financing costs, net, as a contra-liability. The creditors of the consolidated joint ventures do not have recourse to the general credit of the Company. The notes payable of the Wilshire Joint Venture is partially guaranteed by the Company, refer to Note 7, “Notes Payable, Net”. The notes payable of the Sunset & Gardner Joint Venture is not guaranteed by the Company. |
LEASES (Details Textual)
LEASES (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Lessee, Operating Lease, Term of Contract | 10 years 10 months 24 days | |
Operating Leases Weighted Average Remaining Term | 6 years 3 months 18 days | |
Security Deposit | $ 0.1 | $ 0.2 |
COVID-19 [Member] | ||
Real Estate Properties [Line Items] | ||
Percentage of Base Rents Requested Relief | 94.00% | |
Unmodified leases | 47.00% | |
Modified leases | 28.00% | |
Leases in default | 25.00% |
LEASES LEASES (Income from Real
LEASES LEASES (Income from Real Estate Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Leases [Abstract] | |||
Lease income - operating leases | $ 2,040 | $ 2,983 | |
Variable lease income (1) | [1] | 592 | 909 |
Rental and reimbursement revenues | $ 2,632 | $ 3,892 | |
[1] | Primarily includes tenant reimbursements for real estate taxes, insurance and common area maintenance. |
LEASES LEASES (Rental Income Ou
LEASES LEASES (Rental Income Outstanding and Deferred) (Details) - USD ($) $ in Thousands | Feb. 26, 2021 | Dec. 31, 2020 |
Tenant Receivables [Line Items] | ||
Accounts Receivable, before Allowance for Credit Loss | $ 400 | |
Deferred Accounts Receivable | $ 100 | |
Subsequent Event [Member] | ||
Tenant Receivables [Line Items] | ||
Subsequent collection of outstanding accounts receivable | $ 15 | |
Subsequent collection of outstanding accounts receivable, percent | 4.00% |
LEASES (Future Minimum Lease Pa
LEASES (Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2021 | $ 1,711 |
2022 | 1,803 |
2023 | 1,828 |
2024 | 1,850 |
2025 | 1,638 |
Thereafter | 3,434 |
Total | $ 12,264 |
LEASE INTANGIBLES AND BELOW-M_3
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Lease Intangibles, Cost | $ 1,892 | $ 2,084 |
Lease Intangibles, Accumulated amortization | (716) | (763) |
Lease intangibles, net | 1,176 | 1,321 |
Below - Market Lease Liabilities, Cost | (389) | (492) |
Below - Market Lease Liabilities, Accumulated amortization | 142 | 196 |
Below Market Lease, Net | $ (247) | $ (296) |
LEASE INTANGIBLES AND BELOW-M_4
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES LEASE INTANGIBLE AND BELOW-MARKET LEASE AMORTIZATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization [Abstract] | ||
Amortization of Intangible Assets | $ (236) | $ (329) |
Amortization of Below-Market Lease Liabilities | $ 49 | $ 62 |
LEASE INTANGIBLES AND BELOW-M_5
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES FUTURE AMORTIZATION (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Below Market Lease, Amortization Income, Maturity Schedule [Abstract] | ||
2021 | $ (34) | |
2022 | (34) | |
2023 | (34) | |
2024 | (34) | |
2025 | (25) | |
Thereafter | (86) | |
Total | (247) | $ (296) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2021 | 191 | |
2022 | 191 | |
2023 | 188 | |
2024 | 178 | |
2025 | 131 | |
Thereafter | 297 | |
Total | $ 1,176 | $ 1,321 |
NOTES PAYABLE, NET NOTES PAYABL
NOTES PAYABLE, NET NOTES PAYABLE, NET (Multi-Property Secured Financing) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Secured Debt | $ 18 |
Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Maturity Date | Jan. 9, 2023 |
Debt Instrument, Description of Variable Rate Basis | 30-day LIBOR |
Debt Instrument, Basis Spread on Variable Rate | 2.80% |
Secured Debt [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Measurement Input, Default Rate [Member] | Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 5.00% |
NOTES PAYABLE, NET (Line Of Cre
NOTES PAYABLE, NET (Line Of Credit) (Details) - Secured Line Of Credit [Member] - USD ($) $ in Millions | Feb. 15, 2020 | Dec. 31, 2020 | Jan. 08, 2020 | Nov. 07, 2019 | Feb. 15, 2017 |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 10.5 | $ 30 | $ 60 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30 | $ 60 | $ 30 | ||
Line of Credit Facility, Expiration Date | Feb. 15, 2020 | ||||
Usage Under Credit Facility | 50.00% | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% |
NOTES PAYABLE, NET (Loans Secur
NOTES PAYABLE, NET (Loans Secured by Properties Under Development) (Details) - USD ($) | May 07, 2019 | Mar. 08, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Oct. 31, 2019 |
Short-term Debt [Line Items] | ||||||
Payments to Acquire Interest in Joint Venture | $ 0 | $ 38,000 | ||||
Wilshire Joint Venture [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Proceeds from Loan Originations | $ 8,500,000 | |||||
Wilshire Joint Venture [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Proceeds from Loan Originations | $ 12,500,000 | |||||
Debt Instrument, Description of Variable Rate Basis | 1-month LIBOR | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | |||||
Debt Instrument, Maturity Date | May 10, 2022 | |||||
Sunset and Gardner Joint Venture [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Proceeds from Loan Originations | $ 8,700,000 | |||||
Interest Rate | 6.50% | 6.90% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 7.30% | |||||
Debt Instrument, Maturity Date | Oct. 31, 2021 | |||||
Maximum [Member] | Wilshire Joint Venture [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Proceeds from Loan Originations | $ 13,900,000 | |||||
Subsequent Contribution [Member] | Wilshire Joint Venture [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Payments to Acquire Interest in Joint Venture | $ 3,100,000 |
NOTES PAYABLE, NET (Future Prin
NOTES PAYABLE, NET (Future Principal Payments) (Details) $ in Thousands | Dec. 31, 2020USD ($) | |
Debt Disclosure [Abstract] | ||
Deferred Costs | $ 900 | |
Schedule of maturities for notes payable outstanding | ||
2021 | 8,700 | |
2022 | 12,510 | |
2023 | 18,000 | |
Total (1) | $ 39,210 | [1] |
[1] | Total future principal payments reflect actual amounts due to creditors, and excludes reclassification of $0.9 million deferred financing costs, net. |
NOTES PAYABLE, NET NOTES PAYA_2
NOTES PAYABLE, NET NOTES PAYABLE, NET (Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | ||
Interest expense | $ 785 | $ 667 |
Amortization of Deferred Financing Costs | 400 | |
Interest Costs Capitalized | 2,100 | 2,700 |
Interest Payable | 200 | 200 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Short-term Debt [Line Items] | ||
Amortization of Deferred Financing Costs | 300 | 400 |
Interest Costs Capitalized | 2,100 | 2,700 |
Interest Payable | $ 100 | $ 100 |
FAIR VALUE DISCLOSURES (Details
FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loss on impairment of real estate and property under development | $ 13,383 | $ 0 |
Minimum [Member] | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FairValueInputsTerminalCapitalizationRate | 4.23% | |
Maximum [Member] | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FairValueInputsTerminalCapitalizationRate | 4.50% | |
Sunset and Gardner Joint Venture [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loss on impairment of real estate and property under development | $ 8,900 | |
Wilshire Joint Venture [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loss on impairment of real estate and property under development | $ 4,400 |
EQUITY COMMON STOCK (Details)
EQUITY COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 04, 2015 | Feb. 07, 2013 | Dec. 31, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common Stock, Shares, Issued | 10,739,814 | 10,759,721 | ||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares Authorized | 400,000,000 | |||
Common stock par value (in dollars per share) | $ 0.01 | |||
Common Stock, Shares, Issued | 10,688,940 | |||
Proceeds from Issuance of Common Stock | $ 104.7 | |||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 391,182 | |||
Proceeds from Issuance of Common Stock, Dividend Reinvestment Plan | $ 3.6 | |||
SpecialDistributionSharesIssuedToStockholders | 273,729 | |||
Cumulative stock redeemed to date, shares | 878,458 | |||
Cumulative stock redeemed to date, value | $ 6.2 | |||
Restricted Stock | ||||
Class of Stock [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 50,000 |
EQUITY COMMON UNITS OF THE OP (
EQUITY COMMON UNITS OF THE OP (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 30, 2014 | Dec. 31, 2019 | Mar. 12, 2012 | May 26, 2011 |
Class of Stock [Line Items] | ||||
Stock Issued During Period, Value, Conversion of Units | $ 0 | |||
Affiliated Entity | ||||
Class of Stock [Line Items] | ||||
Proceeds from Contributed Capital | $ 1 | |||
OperatingPartnershipInterest | 15.00% | |||
cumulative rate of return | 7.00% | |||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Shares, Conversion of Units | 17,719 | |||
Stock Issued During Period, Value, Conversion of Units | $ 0 | |||
AntidilutedConvertibleCommonUnitsOfRedemption | 1,000 | |||
Additional Paid-in Capital | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Value, Conversion of Units | $ 105 | |||
Pinehurst | ||||
Class of Stock [Line Items] | ||||
Common Unit, Issued | 287,472 | |||
Common Unit, Issuance Value | $ 2,600 | |||
Commonunitissuancevalueperunit | $ 9 | |||
Shops at Turkey Creek | ||||
Class of Stock [Line Items] | ||||
Common Unit, Issued | 144,324 | |||
Common Unit, Issuance Value | $ 1,400 | |||
Commonunitissuancevalueperunit | $ 9.50 |
EQUITY PREFERRED STOCK (Details
EQUITY PREFERRED STOCK (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
EQUITY (Share Redemption) (Deta
EQUITY (Share Redemption) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Apr. 01, 2015 | |
Class of Stock [Line Items] | |||
Common Stock Outstanding Percentage | 5.00% | ||
Redemption Price for Shares Percentage | 100.00% | ||
Share Redemption Amount Minimum Limit | $ 5,000 | ||
Stock Redeemed or Called During Period, Value | $ 117,000 | $ 722,000 | |
Common Stock | |||
Class of Stock [Line Items] | |||
Stock Redeemed or Called During Period, Shares | 19,907 | 121,297 | |
Stock Redeemed or Called During Period, Value | $ 117,000 | $ 722,000 | |
Cumulative stock redeemed to date, shares | 878,458 | ||
Cumulative stock redeemed to date, value | $ 6,200,000 | ||
Death of a shareholder [Member] | |||
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 3,800,000 | ||
Disability of a Shareholder [Member] | |||
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 1,200,000 |
EQUITY EQUITY (Quarterly Distri
EQUITY EQUITY (Quarterly Distribution (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | ||||||
Minimum Percentage of Taxable Income Distributed to Shareholders | 90.00% | |||||
Dividends Payable, Date Declared | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | ||
Dividends Payable, Date to be Paid | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | ||
Common Stock, Dividends, Per Share, Declared | $ 0.02 | $ 0.06 | $ 0.06 | $ 0.06 | ||
Stock Dividends | $ 215 | $ 646 | $ 648 | $ 651 | $ 2,160 | |
Total Common Unit Holders Distribution | 5 | 13 | 14 | 14 | 46 | |
Total Distribution | $ 220 | $ 659 | $ 662 | $ 665 | $ 2,206 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Numerator - basic and diluted | |||
Net income (loss) | $ (15,508) | $ 138 | |
Net income (loss) attributable to non-controlling interests | (308) | 3 | |
Net income (loss) attributable to common shares | $ (15,200) | $ 135 | |
Denominator - basic and diluted | |||
Basic weighted average common shares | 10,744,570 | 10,818,686 | |
Common Units (1) | [1] | 0 | 0 |
Diluted weighted average common shares | 10,744,570 | 10,818,686 | |
Earnings (loss) per common share - basic and diluted | |||
Net earnings (loss) attributable to common shares | $ (1.41) | $ 0.01 | |
[1] | The effect of 217,475 convertible Common Units pursuant to the redemption rights outlined in the Company’s registration statement on Form S-11 have not been included as they would not be dilutive. |
EARNINGS PER SHARE (Details Tex
EARNINGS PER SHARE (Details Textual) | 12 Months Ended |
Dec. 31, 2020shares | |
Earnings Per Share [Abstract] | |
Antidiluted Convertible Common Units of Redemption | 217,475 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Advisor Fees [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Expensed Asset management Fees [Member] | ||
Summarized below are the related-party transactions | ||
Related-party costs, Incurred | $ 636 | $ 647 |
Related-party costs, Payable | 0 | 0 |
Expensed Reimbursement Of Operating Expenses [Member] | ||
Summarized below are the related-party transactions | ||
Related-party costs, Incurred | 23 | 35 |
Related-party costs, Payable | 0 | 0 |
Expensed Property Management Fees [Member] | ||
Summarized below are the related-party transactions | ||
Related-party costs, Incurred | 81 | 126 |
Related-party costs, Payable | 9 | 7 |
Expensed Disposition Fees [Member] | ||
Summarized below are the related-party transactions | ||
Related-party costs, Incurred | 157 | 2 |
Related-party costs, Payable | 0 | 0 |
Capitalized Acquisition Fees [Member] | ||
Summarized below are the related-party transactions | ||
Related-party costs, Incurred | 18 | 46 |
Related-party costs, Payable | 0 | 0 |
Capitalized Leasing Fees [Member] | ||
Summarized below are the related-party transactions | ||
Related-party costs, Incurred | 113 | 0 |
Related-party costs, Payable | 0 | 0 |
Capitalized Legal Leasing Fees [Member] | ||
Summarized below are the related-party transactions | ||
Related-party costs, Incurred | 42 | 0 |
Related-party costs, Payable | 0 | 0 |
Capitalized Construction Management Fees [Member] | ||
Summarized below are the related-party transactions | ||
Related-party costs, Incurred | 138 | 174 |
Related-party costs, Payable | 2 | 111 |
Financing Coordination Fees, Capitalized [Member] | ||
Summarized below are the related-party transactions | ||
Related-party costs, Incurred | 44 | 179 |
Related-party costs, Payable | 0 | 22 |
Expensed [Member] | ||
Summarized below are the related-party transactions | ||
Related-party costs, Incurred | 897 | 810 |
Related-party costs, Payable | 9 | 7 |
Capitalized [Member] | ||
Summarized below are the related-party transactions | ||
Related-party costs, Incurred | 355 | 399 |
Related-party costs, Payable | $ 2 | $ 133 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details) (Narrative) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Advisor Fees [Member] | |
Related Party Transaction [Line Items] | |
Company pays Advisor an acquisition and origination fee for cost of investments acquired | 1.00% |
Financing Coordination Fee, percentage | 1.00% |
Company pays Advisor a monthly asset management fee on all real estate investments | 0.60% |
Percentage of Average Invested Assets | 2.00% |
Percent of Net Income | 25.00% |
Advisor or its affiliates also will be paid disposition fees of a customary and competitive real estate commission | 50.00% |
SRT Manager [Member] | |
Related Party Transaction [Line Items] | |
Property Management Fee, Percent Fee | 4.00% |
Construction Management Fee, percentage | 5.00% |
Asset Management [Member] | |
Related Party Transaction [Line Items] | |
Asset Management Fees | $ 250,000 |
Maximum [Member] | Advisor Fees [Member] | |
Related Party Transaction [Line Items] | |
Advisor or its affiliates also will be paid disposition fees of the contract price | 3.00% |
SUBSEQUENT EVENTS MORTGAGE FINA
SUBSEQUENT EVENTS MORTGAGE FINANCING (Details) - Subsequent Event [Member] $ in Millions | Mar. 03, 2021USD ($) |
Subsequent Event [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2.5 |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% |
SCHEDULE III - REAL ESTATE OPER
SCHEDULE III - REAL ESTATE OPERATING PROPERTIES AND ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 30,510 | ||||
Land | 27,117 | ||||
Building & Improvements | 32,849 | ||||
Cost Capitalized Subsequent to Acquisition(1) | [1] | (202) | |||
Land | 25,400 | ||||
Building & Improvements | 34,364 | ||||
Total(2) | 59,764 | [2] | $ 38,532 | $ 48,393 | |
Accumulated Depreciation | (3,797) | $ (3,308) | $ (3,917) | ||
Federal Income Tax Basis | 62,500 | ||||
400 Grove [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | 1,450 | ||||
Land | 1,009 | ||||
Building & Improvements | 1,813 | ||||
Cost Capitalized Subsequent to Acquisition(1) | [1] | 0 | |||
Land | 1,009 | ||||
Building & Improvements | 1,813 | ||||
Total(2) | [2] | 2,822 | |||
Accumulated Depreciation | $ (272) | ||||
Acquisition Date | Jun. 14, 2016 | ||||
400 Grove [Member] | Minimum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 5 years | |||
400 Grove [Member] | Maximum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 30 years | |||
8 Octavia [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 1,500 | ||||
Land | 728 | ||||
Building & Improvements | 1,847 | ||||
Cost Capitalized Subsequent to Acquisition(1) | [1] | 612 | |||
Land | 728 | ||||
Building & Improvements | 2,459 | ||||
Total(2) | [2] | 3,187 | |||
Accumulated Depreciation | $ (323) | ||||
Acquisition Date | Jun. 14, 2016 | ||||
8 Octavia [Member] | Minimum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 5 years | |||
8 Octavia [Member] | Maximum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 30 years | |||
Fulton Shops [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 2,200 | ||||
Land | 1,187 | ||||
Building & Improvements | 3,254 | ||||
Cost Capitalized Subsequent to Acquisition(1) | [1] | 2 | |||
Land | 1,187 | ||||
Building & Improvements | 3,256 | ||||
Total(2) | [2] | 4,443 | |||
Accumulated Depreciation | $ (531) | ||||
Acquisition Date | Jul. 27, 2016 | ||||
Fulton Shops [Member] | Minimum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 5 years | |||
Fulton Shops [Member] | Maximum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 30 years | |||
450 Hayes [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 3,650 | ||||
Land | 2,324 | ||||
Building & Improvements | 5,009 | ||||
Cost Capitalized Subsequent to Acquisition(1) | [1] | 367 | |||
Land | 2,324 | ||||
Building & Improvements | 5,376 | ||||
Total(2) | [2] | 7,700 | |||
Accumulated Depreciation | $ (771) | ||||
Acquisition Date | Dec. 22, 2016 | ||||
450 Hayes [Member] | Minimum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 5 years | |||
450 Hayes [Member] | Maximum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 30 years | |||
388 Fulton [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 2,300 | ||||
Land | 1,109 | ||||
Building & Improvements | 2,943 | ||||
Cost Capitalized Subsequent to Acquisition(1) | [1] | 319 | |||
Land | 1,112 | ||||
Building & Improvements | 3,259 | ||||
Total(2) | [2] | 4,371 | |||
Accumulated Depreciation | $ (510) | ||||
Acquisition Date | Jan. 4, 2017 | ||||
388 Fulton [Member] | Minimum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 5 years | |||
388 Fulton [Member] | Maximum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 30 years | |||
Silver Lake [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 6,900 | ||||
Land | 5,747 | ||||
Building & Improvements | 6,646 | ||||
Cost Capitalized Subsequent to Acquisition(1) | [1] | 398 | |||
Land | 5,760 | ||||
Building & Improvements | 7,031 | ||||
Total(2) | [2] | 12,791 | |||
Accumulated Depreciation | $ (1,182) | ||||
Acquisition Date | Jan. 11, 2017 | ||||
Silver Lake [Member] | Minimum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 5 years | |||
Silver Lake [Member] | Maximum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 30 years | |||
Topaz Marketplace [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 0 | ||||
Land | 2,120 | ||||
Building & Improvements | 10,724 | ||||
Cost Capitalized Subsequent to Acquisition(1) | [1] | (12,590) | |||
Land | 254 | ||||
Building & Improvements | 0 | ||||
Total(2) | [2] | 254 | |||
Accumulated Depreciation | $ 0 | ||||
Acquisition Date | Sep. 23, 2011 | ||||
Wilshire Property | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 12,510 | ||||
Land | 12,893 | ||||
Building & Improvements | 613 | ||||
Cost Capitalized Subsequent to Acquisition(1) | [1] | 10,690 | |||
Land | 13,026 | ||||
Building & Improvements | 11,170 | ||||
Total(2) | [2] | 24,196 | |||
Accumulated Depreciation | $ (208) | ||||
Acquisition Date | Mar. 8, 2016 | ||||
Wilshire Property | Minimum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 5 years | |||
Wilshire Property | Maximum [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Life on which Depreciation in Latest Statement of Operations is Computed(3) | [3] | 30 years | |||
[1] | The cost capitalized subsequent to acquisition may include negative balances resulting from the write-off and impairment of real estate assets, and parcel sales. | ||||
[2] | The aggregate net tax basis of land and buildings, excluding properties held for sale, for federal income tax purposes is $62.5 million. | ||||
[3] | Buildings and building improvements are depreciated over their useful lives as shown. Tenant improvements are amortized over the life of the related lease, which with our current portfolio can vary from 1 year to over 15 years. |
SEC Schedule, Article 12-28, _3
SEC Schedule, Article 12-28, Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | ||||
Balance at the beginning of the year | $ 38,532 | $ 48,393 | ||
Improvements | 565 | 683 | ||
Dispositions | (2) | 0 | ||
Impairments | (4,447) | 0 | ||
Balances associated with changes in reporting presentation (1) | [1] | 25,116 | (10,544) | |
Balance at the end of the year | 59,764 | [2] | 38,532 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||||
Balance at the beginning of the year | 3,308 | 3,917 | ||
Depreciation expense | 1,154 | 1,100 | ||
Dispositions | (2) | 0 | ||
Balances associated with changes in reporting presentation (1) | [1] | (663) | (1,709) | |
Balance at the end of the year | $ 3,797 | $ 3,308 | ||
[1] | The balances associated with changes in reporting presentation represent real estate and accumulated depreciation reclassified as assets held for sale. | |||
[2] | The aggregate net tax basis of land and buildings, excluding properties held for sale, for federal income tax purposes is $62.5 million. |