Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 08, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | 550 W Adams St, Suite 200 | |
Entity Address, City or Town | Chicago, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60661 | |
City Area Code | 312 | |
Local Phone Number | 878-4860 | |
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 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001446371 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 10,752,966 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Investments in real estate | |||
Land | $ 12,374 | $ 12,374 | |
Building and improvements | 22,175 | 22,140 | |
Tenant improvements | 947 | 947 | |
Real Estate Investment Property, at Cost | 35,496 | 35,461 | |
Accumulated depreciation | (5,058) | (4,838) | |
Investments in real estate, net | 30,438 | 30,623 | |
Cash, cash equivalents and restricted cash | 2,590 | 3,471 | |
Prepaid expenses and other assets | 429 | 152 | |
Tenant receivables, net of $83 and $19 bad debt reserve | 861 | 841 | |
Deferred Costs, Leasing, Net | 343 | 353 | |
Lease intangibles, net | 289 | 308 | |
Total assets | [1] | 34,950 | 35,748 |
LIABILITIES | |||
Notes payable, net | 17,960 | 18,000 | |
Accounts payable and accrued expenses | 287 | 285 | |
Amounts due to affiliates. | 38 | 37 | |
Other Liabilities | 143 | 172 | |
Below Market Lease, Net | 102 | 108 | |
TOTAL LIABILITIES (1) | [1] | 18,530 | 18,602 |
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; 10,752,966 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 110 | 110 | |
Additional paid-in capital | 94,644 | 94,644 | |
Accumulated deficit | (78,569) | (77,852) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 5 | 0 | |
Total stockholders’ equity | 16,190 | 16,902 | |
Non-controlling interests | 230 | 244 | |
TOTAL EQUITY | 16,420 | 17,146 | |
TOTAL LIABILITIES AND EQUITY | $ 34,950 | $ 35,748 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Common Stock, Shares, Outstanding | 10,752,966 | 10,752,966 | |
Common Stock, Shares, Issued | 10,752,966 | 10,752,966 | |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Bad Debt Reserve | $ 83 | $ 19 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Investments in real estate | |||
Cash, cash equivalents and restricted cash | 148 | 531 | |
Prepaid expenses and other assets | 23 | 19 | |
Tenant receivables, net of $83 and $19 bad debt reserve | 26 | 26 | |
Total assets | 197 | 576 | |
LIABILITIES | |||
Accounts payable and accrued expenses | 26 | 31 | |
TOTAL LIABILITIES (1) | $ 26 | $ 31 | |
[1]As of March 31, 2023 and December 31, 2022, includes approximately $0.2 million and $0.6 million, respectively, of assets related to consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities. Refer to Note 3. “Variable Interest Entities”. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Rental and reimbursements | $ 627 | $ 734 |
Expense: | ||
Operating and maintenance | 362 | 485 |
General and administrative | 375 | 437 |
Depreciation and amortization | 253 | 294 |
Interest expense | 368 | 320 |
Total expense | 1,358 | 1,536 |
Operating loss | (731) | (802) |
Other income: | ||
Net loss | (731) | (802) |
Net loss attributable to non-controlling interests | (14) | (15) |
Net loss attributable to common shares | $ (717) | $ (787) |
Earnings Per Share, Diluted | $ (0.07) | $ (0.07) |
Earnings Per Share, Basic | $ (0.07) | $ (0.07) |
Weighted average shares outstanding used to calculate loss per common share - basic and diluted | 10,752,966 | 10,752,966 |
Weighted Average Number of Shares Outstanding, Diluted | 10,752,966 | 10,752,966 |
Weighted Average Number of Shares Issued, Basic | 10,752,966 | |
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | $ 5 | $ 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (712) | $ (787) |
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 | AOCI Attributable to Parent |
Stockholders' Equity Attributable to Parent | $ 110,000 | $ 94,644,000 | $ (66,307,000) | $ 28,447,000 | $ 0 | ||
BALANCE at Dec. 31, 2021 | $ 28,908,000 | $ 461,000 | |||||
BALANCE (in shares) at Dec. 31, 2021 | 10,752,966 | ||||||
Net loss attributable to non-controlling interests | (15,000) | (15,000) | |||||
Net loss attributable to common shares | (787,000) | $ 0 | 0 | (787,000) | (787,000) | 0 | |
Net loss | (802,000) | ||||||
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | 0 | ||||||
BALANCE at Mar. 31, 2022 | 28,106,000 | 446,000 | |||||
BALANCE (in shares) at Mar. 31, 2022 | 10,752,966 | ||||||
Other Noncash Expense | 42,000 | ||||||
Proceeds from Contributions from Affiliates | 1,350,000 | ||||||
Stockholders' Equity Attributable to Parent | $ 110,000 | 94,644,000 | (67,094,000) | 27,660,000 | 0 | ||
Stockholders' Equity Attributable to Parent | 16,902,000 | $ 110,000 | 94,644,000 | (77,852,000) | 16,902,000 | 0 | |
BALANCE at Dec. 31, 2022 | 17,146,000 | 244,000 | |||||
BALANCE (in shares) at Dec. 31, 2022 | 10,752,966 | ||||||
Net loss attributable to non-controlling interests | (14,000) | (14,000) | |||||
Net loss attributable to common shares | (717,000) | $ 0 | 0 | (717,000) | (717,000) | 0 | |
Net loss | (731,000) | ||||||
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | 5,000 | $ 0 | 0 | 0 | 5,000 | 0 | 5,000 |
BALANCE at Mar. 31, 2023 | 16,420,000 | $ 230,000 | |||||
BALANCE (in shares) at Mar. 31, 2023 | 10,752,966 | ||||||
Other Noncash Expense | 0 | ||||||
Proceeds from Contributions from Affiliates | 0 | ||||||
Stockholders' Equity Attributable to Parent | $ 16,190,000 | $ 110,000 | $ 94,644,000 | $ (78,569,000) | $ 16,190,000 | $ 5,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (731) | $ (802) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | (5) | 0 |
Straight-line rent | (10) | (93) |
Amortization of deferred financing costs | 13 | 108 |
Depreciation and amortization | 253 | 294 |
Amortization of above and below-market leases | (6) | (4) |
Provision for losses on tenant receivable | 64 | 21 |
Other Noncash Expense | 0 | 42 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (17) | (63) |
Tenant receivables | (74) | 12 |
Accounts payable and accrued expenses | (33) | (259) |
Amounts due to affiliates | 1 | (8) |
Other liabilities | (29) | (72) |
Net cash used in operating activities | (564) | (824) |
Cash flows from investing activities: | ||
Investment in properties under development and development costs | 0 | (426) |
Improvements and capital expenditures | 0 | (79) |
Payments for leasing costs | (4) | (5) |
Net cash used in investing activities | (4) | (510) |
Cash flows from financing activities: | ||
Proceeds from notes payable from investments in consolidated variable interest entities | 0 | 152 |
Proceeds from Contributions from Affiliates | 0 | 1,350 |
Payments of Financing Costs | (313) | 0 |
Net cash (used in) provided by financing activities | (313) | 1,502 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (881) | 168 |
Cash, cash equivalents and restricted cash – beginning of period | 3,471 | 2,407 |
Cash, cash equivalents and restricted cash – end of period | 2,590 | 2,575 |
Supplemental disclosure of non-cash investing and financing activities and other cash flow information: | ||
Change in accrued liabilities capitalized to investment in development | 0 | 9 |
Amortization of deferred loan fees capitalized to investment in development | 0 | 44 |
Changes in capital improvements and leasing costs, accrued but not paid | 35 | 0 |
Cash paid for interest, net of amounts capitalized | $ 347 | $ 193 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS | 1. 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. The Company is currently 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 2023. The current term of the Advisory Agreement terminates on August 9, 2023. As of April 2021, the advisor is an affiliate of PUR Management LLC (“PUR”), which is an affiliate of L3 Capital, LLC. L3 Capital, LLC 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. 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 March 31, 2023 and December 31, 2022, the Company owned 98.1% of the limited partnership interests in the OP. The Company’s principal demands for funds are the payment of operating expenses and the interest on outstanding indebtedness. The Company’s available capital resources, cash and cash equivalents on hand and sources of liquidity are currently limited. The Company expects its cash needs will be funded using cash from operations, future asset sales and debt financing. The Company manages a portfolio of income-producing retail properties located in California. As of March 31, 2023, the Company’s portfolio was comprised of six properties, with approximately 27,000 rentable square feet of retail space located in California, as well as an improved land parcel. As of March 31, 2023, the rentable space at the Company’s retail properties was 88% leased. The Company’s focus in 2023 is exploring strategic alternatives available to it to provide liquidity to its stockholders. On May 12, 2023, the board of directors unanimously approved the sale of all of the Company’s assets and the dissolution of the Company pursuant to the terms of a plan of complete liquidation and dissolution of the Company (the “Plan of Liquidation”). The principal purpose of the Plan of Liquidation is to maximize stockholder value by selling the Company’s assets, paying its debts and distributing the net proceeds from liquidation to the Company’s stockholders. Refer to Note 13. “Subsequent Events” for additional information. Liquidity Given the ongoing workforce shortages, global supply chain bottlenecks and shortages, and high inflation, the Company continues to monitor and address risks related to the COVID-19 pandemic and the general state of the economy. The Company believes that the actions taken to improve its financial position and maximize liquidity, including the suspension of distributions and the share redemption program, will continue to mitigate the impact to the Company’s cash flow caused by the adverse effects of the COVID-19 pandemic and the current impact of inflation and rising interests rates and the general state of the economy on the Company’s portfolio and retail tenants. The Company’s cash demands have been primarily funded by cash provided by property operations, debt financings and the sales of properties. The COVID-19 pandemic had a material detrimental impact on the Company’s retail tenants and their ability to pay rent and consequently on the Company’s liquidity. As of March 31, 2023, the Company had approximately $2.4 million in cash and cash equivalents. In addition, the Company had approximately $0.2 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). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The accompanying interim unaudited condensed 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 interim unaudited condensed 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 condensed 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. During the three months ended March 31, 2023 and 2022, the Company held variable interests in two variable interest entities and consolidated those entities. Refer to Note 3. “Variable Interest Entities” for additional information. Derivative Instruments and Hedging Activities The Company measures derivative instruments at fair value and records them as assets or liabilities, depending on its rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in accumulated other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. The Company does not net its derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheets. The Company does not use derivatives for trading or speculative purposes. For the periods presented, the Company's derivative, comprised of an interest rate cap, qualified and was designated as a cash flow hedge, and was not deemed ineffective. 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 condensed consolidated balance sheets that sum to the total of the same such amounts shown on the condensed consolidated statement of cash flows (amounts in thousands): March 31, 2023 March 31, 2022 Cash and cash equivalents $ 2,357 $ 2,117 Restricted cash 233 458 Total cash, cash equivalents, and restricted cash $ 2,590 $ 2,575 Recent Accounting Pronouncements The FASB issued the following ASUs, which could have potential impact to the Company’s condensed consolidated financial statements: In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU No. 2020-04 is optional and may be elected over time through December 31, 2022. The adoption of Reference Rate Reform did not have an impact on the Company’s consolidated financial statements. As a result of the adoption the Company did not modify any existing debt agreements. 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 did not have an impact on the Company’s consolidated financial statements. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | 3. VARIABLE INTEREST ENTITIES The Company had variable interests in, and was 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. Sale of Joint Venture Properties On December 21, 2022, the Company consummated the disposition of the Sunset & Gardner Joint Venture Property to an unaffiliated third party for $12.9 million in cash, before customary closing and transaction costs. The Company’s condensed consolidated statements of operations and comprehensive income include a net operating loss of approximately $23 thousand for the three months ended March 31, 2023 and a net operating gain of approximately $208 thousand for the three months ended March 31, 2022, related to the Sunset & Gardner Joint Venture Property. On October 11, 2022, the Company consummated the disposition of the Wilshire Joint Venture Property to an unaffiliated third party for $16.5 million in cash, before customary closing and transaction costs. The Company’s condensed consolidated statements of operations include net operating losses of approximately $70 thousand and $379 thousand for the three months ended March 31, 2023 and 2022, respectively, related to the Wilshire Joint Venture Property. Joint Ventures 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 March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, December 31, 2023 2022 ASSETS Cash, cash equivalents and restricted cash $ 148 $ 531 Prepaid expenses and other assets, net 23 19 Other receivables, net 26 26 TOTAL ASSETS (1) $ 197 $ 576 LIABILITIES Accounts payable and accrued expenses $ 26 $ 31 TOTAL LIABILITIES $ 26 $ 31 (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. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2023 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
FUTURE MINIMUM RENTAL INCOME | 4. 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 March 31, 2023, the leases at the Company’s properties have remaining terms (excluding options to extend) of up to 9.1 years with a weighted-average remaining term (excluding options to extend) of approximately 5.5 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 condensed consolidated balance sheets and totaled approximately $0.1 million as of March 31, 2023 and December 31, 2022, respectively. The following table presents the components of income from real estate operations for the three months ended March 31, 2023 and 2022 (amounts in thousands): Three Months Ended 2023 2022 Lease income - operating leases $ 477 $ 577 Variable lease income (1) 150 157 Rental and reimbursements income $ 627 $ 734 (1) Primarily includes tenant reimbursements for real estate taxes, insurance, consideration based on sales, common area maintenance, utilities, marketing, and certain other items including negative variable lease income. As of March 31, 2023 and December 31, 2022, approximately $679 thousand and $631 thousand of straight-line rent receivable was included in tenant receivables in the condensed consolidated balance sheets, respectively. As of March 31, 2023, the future minimum rental income from the Company’s properties under non-cancelable operating leases, was as follows (amounts in thousands): Remainder 2023 $ 1,369 2024 1,860 2025 1,763 2026 1,476 2027 1,121 Thereafter 4,720 Total $ 12,309 |
LEASE INTANGIBLES AND BELOW-MAR
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
ACQUIRED LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES | 5. LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES, NET As of March 31, 2023 and December 31, 2022, the Company’s above-market lease intangibles, at-market lease intangibles and below-market lease liabilities were as follows (amounts in thousands): March 31, 2023 December 31, 2022 At-Market Lease Intangibles Above-Market Lease Intangibles Below-Market Lease Intangibles At-Market Lease Intangibles Above-Market Lease Intangibles Below-Market Lease Intangibles Cost $ 765 $ — $ (247) $ 765 $ — $ (247) Accumulated amortization (476) — 145 (457) — 139 Total $ 289 $ — $ (102) $ 308 $ — $ (108) Amortization of at-market lease intangible assets is recorded in depreciation and amortization expense and amortization of above-market rent and below-market rent is recorded as a reduction to and increase to rental and reimbursements, respectively, in the consolidated statements of operations and comprehensive income. The Company’s amortization of above-market lease intangibles, at-market lease intangibles and below-market lease liabilities for the three months ended March 31, 2023 and 2022, were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Amortization At-Market lease intangibles $ (19) $ (22) Above-Market lease intangibles $ — $ (1) Below-Market lease liabilities $ 6 $ 5 |
Deferred Costs, Capitalized, Pr
Deferred Costs, Capitalized, Prepaid, and Other Assets | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Leasing Costs | 6. DEFERRED LEASING COSTS, NET Deferred leasing costs consist primarily of initial direct costs in connection with lease originations. We record amortization of deferred leasing costs on a straight-line basis over the terms of the related leases. As of March 31, 2023 and December 31, 2022, details of these deferred costs were as follows (amounts in thousands): March 31, 2023 December 31, 2022 Deferred leasing costs $ 444 $ 440 Accumulated amortization (101) (87) Deferred leasing costs, net $ 343 $ 353 Amortization of deferred leasing costs is recorded in depreciation and amortization expense in the consolidated statements of operations and comprehensive income. The Company’s deferred leasing costs amortization for the three months ended March 31, 2023 and 2022, were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Amortization of deferred leasing costs $ (14) $ (11) |
NOTES PAYABLE, NET
NOTES PAYABLE, NET | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | 7. NOTES PAYABLE, NET 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. The SRT Loan was scheduled to mature on January 9, 2023. On January 18, 2023, pursuant to the terms of the SRT Loan Agreement, the Company and the SRT Lender extended the maturity date of the SRT Loan for an additional twelve-month period under the same terms and conditions. The new maturity date is January 9, 2024. The Company has one additional option to extend the term of the loan for an additional twelve-month period, 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 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. As of March 31, 2023, the SRT Loan had a principal balance of approximately $18.0 million. The SRT Loan is a floating Secured Overnight Financing Rate (“SOFR”) rate loan which bears interest at 30-day SOFR (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. Effective December 24, 2019, the Company entered into a derivative transaction with a financial institution with a notional amount of $18,000,000, representing an interest rate cap. The Company will receive a payment from the counterparty if the rate on SOFR exceeds 3.5%. The instrument is measured at fair value using readily observable market inputs, such as quotations on interest rates, and classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. The Company paid $17 thousand for the derivative and it matures on January 9, 2023. The impact of the interest rate cap is immaterial for all periods reported and is included as a component of interest expense in the condensed consolidated statements of operations and comprehensive income. Effective January 9, 2023, the Company entered into a derivative transaction with a financial institution with a notional amount of $18,000,000, representing an interest rate cap. The Company will receive a payment from the counterparty if the rate on SOFR exceeds 3.5%. The instrument is measured at fair value which was determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets and is classified as Level 2 in the fair value hierarchy. The Company paid $260 thousand for the derivative and it matures on January 9, 2024. The interest rate cap is included in prepaid expenses and other assets on the condensed consolidated balance sheets. As of March 31, 2023 the fair value of the derivative was approximately $200 thousand. For the three months ended March 31, 2023, approximately $5 thousand was recognized in other comprehensive income on the accompanying condensed consolidated statements of operations and comprehensive income. 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. As of March 31, 2023, the Company was in compliance with the loan requirements. 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. The following is a schedule of future principal payments for all of the Company’s notes payable outstanding as of March 31, 2023 (amounts in thousands): Remainder of 2023 $ — 2024 18,000 Total future principal payments 18,000 Unamortized financing costs, net 40 Notes payable, net $ 17,960 The following table sets forth interest costs incurred by the Company for the periods presented (amounts in thousands): Three Months Ended 2023 2022 Expensed Interest costs, net of amortization of deferred financing costs $ 355 $ 212 Amortization of deferred financing costs 13 108 Total interest expensed $ 368 $ 320 Capitalized Interest costs, net of amortization of deferred financing costs $ — $ 383 Amortization of deferred financing costs — 44 Total interest capitalized $ — $ 427 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | 8. FAIR VALUE DISCLOSURES The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps and interest rate swaps; and Level 3, for financial instruments or other assets/liabilities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring the Company to develop its own assumptions. The Company has a derivative asset, which was included in prepaid expenses and other assets on the condensed consolidated balance sheets, and comprised of a interest rate cap. The derivative instrument was measured at fair value which was determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Therefore, the Company has categorized the interest rate cap as Level 2. 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 March 31, 2023. 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. For the three months ended March 31, 2023 and 2022, the Company did not record any impairment losses. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | 9. EQUITY 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. 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. In order to preserve cash in response to the potential economic impact of COVID-19 on the Company, the board of directors approved the suspension of the SRP effective on May 21, 2020. On May 12, 2023, in connection with the approval of the Plan of Liquidation, the board of directors approved the termination of the SRP. There were no share redemptions during the three months ended March 31, 2023 and 2022. Cumulatively, through March 31, 2023, the Company has redeemed 878,458 shares for $6.2 million. 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. The Company’s board of directors regularly evaluates the amount and timing of distributions based on the Company’s operational cash needs. In response to 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 determined to suspend the payment of any dividend for the quarter ending March 31, 2020, and to consider future dividend payments on a quarter by quarter basis. Dividend payments were not reinstated as of March 31, 2023. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 10. EARNINGS PER SHARE EPS is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during each period. The following table sets forth the computation of the Company’s basic and diluted earnings per share for the three months ended March 31, 2023 and 2022 (amounts in thousands, except shares and per share amounts): Three Months Ended 2023 2022 Numerator - basic and diluted Net loss $ (731) $ (802) Net loss attributable to non-controlling interests (14) (15) Net loss attributable to common shares $ (717) $ (787) Denominator - basic and diluted Basic weighted average common shares 10,752,966 10,752,966 Common Units (1) — — Diluted weighted average common shares 10,752,966 10,752,966 Loss per common share - basic and diluted Net loss attributable to common shares $ (0.07) $ (0.07) (1) For the three months ended March 31, 2023 and 2022, the effect of 204,323 of 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 | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 11. 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, 2023. 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 pays 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. On August 12, 2022, the Company, the OP, and the Advisor, entered into the Tenth Amendment to the Advisory Agreement (the “Tenth Amendment”). The Tenth Amendment renews the term of the Advisory Agreement for an additional twelve-month period, beginning on August 10, 2022 and amends certain provisions in the Advisory Agreement with respect to the payment of certain fees as follows. The disposition fee payable to the Advisor will be reduced by half in connection with the sale of certain properties held by the Company. The financing coordination fee payable to the Advisor was waived in connection with the refinancings of the Wilshire Joint Venture Property and Sunset & Gardner Joint Venture property. The asset management fee payable to the Advisor for the twelve-month period commencing August 2022 through July 2023 will be reduced to $250,000 in the aggregate. In all other material respects, the terms of the Advisory Agreement remain unchanged. The Company is party to property management agreements with respect to each of its properties pursuant to which PUR was engaged to serve as property manager. The property management agreements expire August 10, 2023 and will automatically renew every year, unless expressly terminated. 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 Three Months Ended March 31, December 31, Expensed 2023 2022 2023 2022 Asset management fees $ 62 $ 143 $ 21 $ 21 Reimbursement of operating expenses 1 14 — — Property management fees 23 24 17 16 Total $ 86 $ 181 $ 38 $ 37 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. 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. The Tenth Amendment amended the asset management fee payable to the Advisor for the twelve-month period commencing August 2022 through July 2023 to $250,000 in the aggregate. 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. For the three months ended March 31, 2023 and 2022, 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 the Company pays property management fees calculated at a maximum of up to 4% of the properties’ gross revenue. 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, the Company pays 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, the Company pays 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 in exchange the Company pays a fee equal to 5% of the hard costs for the project in question. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 12. 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 condensed 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 | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 13. SUBSEQUENT EVENTS Plan of Liquidation On May 12, 2023, the board of directors unanimously approved the sale of all of the Company’s assets and the dissolution of the Company pursuant to the terms of a plan of complete liquidation and dissolution of the Company (the “Plan of Liquidation”). The principal purpose of the Plan of Liquidation is to maximize stockholder value by selling the Company’s assets, paying its debts and distributing the net proceeds from liquidation to the Company’s stockholders. Pursuant to the Company’s charter, the affirmative vote of a majority of all of the shares of the Company’s common stock entitled to vote on the Plan of Liquidation is required for approval of the Plan of Liquidation. The Company can provide no assurance that the Plan of Liquidation will be approved by the Company’s stockholders. If the Plan of Liquidation is approved by the Company’s stockholders, the Company will pay multiple, or a single, liquidating distribution payments to its stockholders during the liquidation process and will pay a final liquidating distribution after the Company sells all of its assets, pays all of its known liabilities and provides for unknown liabilities. The Company expects to complete these activities within 24 months after stockholder approval of the Plan of Liquidation; however, there can be no assurances regarding the amounts of any liquidating distributions or the timing thereof. Additional information regarding a Plan of Liquidation will be provided to the Company’s stockholders in a proxy statement to be distributed to stockholders in connection with a liquidation vote. Share Redemption Program On May 12, 2023, in connection with its review and approval of the Plan of Liquidation, the board of directors approved the termination of the share redemption program. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying interim unaudited condensed 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 interim unaudited condensed 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 condensed 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. During the three months ended March 31, 2023 and 2022, the Company held variable interests in two variable interest entities and consolidated those entities. Refer to Note 3. “Variable Interest Entities” for additional information. Derivative Instruments and Hedging Activities The Company measures derivative instruments at fair value and records them as assets or liabilities, depending on its rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in accumulated other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. The Company does not net its derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheets. The Company does not use derivatives for trading or speculative purposes. For the periods presented, the Company's derivative, comprised of an interest rate cap, qualified and was designated as a cash flow hedge, and was not deemed ineffective. |
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 condensed consolidated balance sheets that sum to the total of the same such amounts shown on the condensed consolidated statement of cash flows (amounts in thousands): March 31, 2023 March 31, 2022 Cash and cash equivalents $ 2,357 $ 2,117 Restricted cash 233 458 Total cash, cash equivalents, and restricted cash $ 2,590 $ 2,575 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The FASB issued the following ASUs, which could have potential impact to the Company’s condensed consolidated financial statements: In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU No. 2020-04 is optional and may be elected over time through December 31, 2022. The adoption of Reference Rate Reform did not have an impact on the Company’s consolidated financial statements. As a result of the adoption the Company did not modify any existing debt agreements. 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 did not 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) | 3 Months Ended |
Mar. 31, 2023 | |
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 condensed consolidated balance sheets that sum to the total of the same such amounts shown on the condensed consolidated statement of cash flows (amounts in thousands): March 31, 2023 March 31, 2022 Cash and cash equivalents $ 2,357 $ 2,117 Restricted cash 233 458 Total cash, cash equivalents, and restricted cash $ 2,590 $ 2,575 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, December 31, 2023 2022 ASSETS Cash, cash equivalents and restricted cash $ 148 $ 531 Prepaid expenses and other assets, net 23 19 Other receivables, net 26 26 TOTAL ASSETS (1) $ 197 $ 576 LIABILITIES Accounts payable and accrued expenses $ 26 $ 31 TOTAL LIABILITIES $ 26 $ 31 (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. |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023 and 2022 (amounts in thousands): Three Months Ended 2023 2022 Lease income - operating leases $ 477 $ 577 Variable lease income (1) 150 157 Rental and reimbursements income $ 627 $ 734 (1) Primarily includes tenant reimbursements for real estate taxes, insurance, consideration based on sales, common area maintenance, utilities, marketing, and certain other items including negative variable lease income. |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | As of March 31, 2023, the future minimum rental income from the Company’s properties under non-cancelable operating leases, was as follows (amounts in thousands): Remainder 2023 $ 1,369 2024 1,860 2025 1,763 2026 1,476 2027 1,121 Thereafter 4,720 Total $ 12,309 |
LEASE INTANGIBLES AND BELOW-M_2
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Acquired Lease Intangibles and Below Market Lease Liabilities | As of March 31, 2023 and December 31, 2022, the Company’s above-market lease intangibles, at-market lease intangibles and below-market lease liabilities were as follows (amounts in thousands): March 31, 2023 December 31, 2022 At-Market Lease Intangibles Above-Market Lease Intangibles Below-Market Lease Intangibles At-Market Lease Intangibles Above-Market Lease Intangibles Below-Market Lease Intangibles Cost $ 765 $ — $ (247) $ 765 $ — $ (247) Accumulated amortization (476) — 145 (457) — 139 Total $ 289 $ — $ (102) $ 308 $ — $ (108) |
Amortization Of Finite Lease Intangibles and Below-Market Lease Liabilities | The Company’s amortization of above-market lease intangibles, at-market lease intangibles and below-market lease liabilities for the three months ended March 31, 2023 and 2022, were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Amortization At-Market lease intangibles $ (19) $ (22) Above-Market lease intangibles $ — $ (1) Below-Market lease liabilities $ 6 $ 5 |
Deferred Costs, Capitalized, _2
Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | As of March 31, 2023 and December 31, 2022, details of these deferred costs were as follows (amounts in thousands): March 31, 2023 December 31, 2022 Deferred leasing costs $ 444 $ 440 Accumulated amortization (101) (87) Deferred leasing costs, net $ 343 $ 353 |
Lease, Cost | The Company’s deferred leasing costs amortization for the three months ended March 31, 2023 and 2022, were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Amortization of deferred leasing costs $ (14) $ (11) |
NOTES PAYABLE, NET (Tables)
NOTES PAYABLE, NET (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 (amounts in thousands): Remainder of 2023 $ — 2024 18,000 Total future principal payments 18,000 Unamortized financing costs, net 40 Notes payable, net $ 17,960 |
Interest Income and Interest Expense Disclosure | The following table sets forth interest costs incurred by the Company for the periods presented (amounts in thousands): Three Months Ended 2023 2022 Expensed Interest costs, net of amortization of deferred financing costs $ 355 $ 212 Amortization of deferred financing costs 13 108 Total interest expensed $ 368 $ 320 Capitalized Interest costs, net of amortization of deferred financing costs $ — $ 383 Amortization of deferred financing costs — 44 Total interest capitalized $ — $ 427 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023 and 2022 (amounts in thousands, except shares and per share amounts): Three Months Ended 2023 2022 Numerator - basic and diluted Net loss $ (731) $ (802) Net loss attributable to non-controlling interests (14) (15) Net loss attributable to common shares $ (717) $ (787) Denominator - basic and diluted Basic weighted average common shares 10,752,966 10,752,966 Common Units (1) — — Diluted weighted average common shares 10,752,966 10,752,966 Loss per common share - basic and diluted Net loss attributable to common shares $ (0.07) $ (0.07) (1) For the three months ended March 31, 2023 and 2022, the effect of 204,323 of 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) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [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 Three Months Ended March 31, December 31, Expensed 2023 2022 2023 2022 Asset management fees $ 62 $ 143 $ 21 $ 21 Reimbursement of operating expenses 1 14 — — Property management fees 23 24 17 16 Total $ 86 $ 181 $ 38 $ 37 |
ORGANIZATION AND BUSINESS (Deta
ORGANIZATION AND BUSINESS (Details Textual) ft² in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 ft² | Mar. 31, 2022 | Dec. 31, 2022 USD ($) | |
Real Estate Properties [Line Items] | |||
Number of Real Estate Properties | 6 | ||
Net Rentable Area | ft² | 27 | ||
Percent of Real Estate Properties Leased | 88% | ||
Wilshire Joint Venture [Member] | |||
Real Estate Properties [Line Items] | |||
Sales Price | $ | $ 16.5 | ||
Strategic Realty Trust [Member] | |||
Real Estate Properties [Line Items] | |||
Partnership Interest Ownership Percentage | 98.10% | 98.10% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||||
Cash and Cash Equivalents | $ 2,357 | $ 2,117 | ||
Restricted Cash | 233 | 458 | ||
Cash, cash equivalents and restricted cash | $ 2,590 | $ 3,471 | $ 2,575 | $ 2,407 |
VARIABLE INTEREST ENTITIES SUNS
VARIABLE INTEREST ENTITIES SUNSET & GARDER (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||
Operating Income (loss) | $ (731) | $ (802) | |
Sunset and Gardner Joint Venture [Member] | |||
Variable Interest Entity [Line Items] | |||
Sales Price | $ 12,900 | ||
Operating Income (loss) | $ (23) | $ 208 |
VARIABLE INTEREST ENTITIES 3032
VARIABLE INTEREST ENTITIES 3032 WILSHIRE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Variable Interest Entity [Line Items] | ||
Operating Income (loss) | $ (731) | $ (802) |
Wilshire Joint Venture [Member] | ||
Variable Interest Entity [Line Items] | ||
Operating Income (loss) | (70) | (379) |
Sunset and Gardner Joint Venture [Member] | ||
Variable Interest Entity [Line Items] | ||
Operating Income (loss) | $ (23) | $ 208 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Real Estate Investment Property, Net [Abstract] | |||||
Land | $ 12,374 | $ 12,374 | |||
Building and improvements | 22,175 | 22,140 | |||
Tenant improvements | 947 | 947 | |||
Real Estate Investment Property, at Cost | 35,496 | 35,461 | |||
Accumulated depreciation | (5,058) | (4,838) | |||
Investments in real estate, net | 30,438 | 30,623 | |||
Properties under development and development costs: | |||||
Cash, cash equivalents and restricted cash | 2,590 | $ 2,575 | 3,471 | $ 2,407 | |
Prepaid expenses and other assets, net | 429 | 152 | |||
Other receivables, net | 861 | 841 | |||
Deferred Costs, Leasing, Net | 343 | 353 | |||
Deferred Costs | 40 | ||||
Lease intangibles, net | 289 | 308 | |||
Total assets | [1] | 34,950 | 35,748 | ||
LIABILITIES | |||||
Notes payable | 17,960 | 18,000 | |||
Accounts payable and accrued expenses | 287 | 285 | |||
Other liabilities | 143 | 172 | |||
TOTAL LIABILITIES (1) | [1] | 18,530 | 18,602 | ||
Operating Income (loss) | (731) | (802) | |||
Long-Lived Assets Held-for-sale [Line Items] | |||||
Land | 12,374 | 12,374 | |||
Building and improvements | 22,175 | 22,140 | |||
Tenant improvements | 947 | 947 | |||
Real Estate Investment Property, at Cost | 35,496 | 35,461 | |||
Real Estate Investment Property, Accumulated Depreciation | 5,058 | 4,838 | |||
Investments in real estate, net | 30,438 | 30,623 | |||
Other receivables, net | 861 | 841 | |||
Deferred Costs, Leasing, Net | 343 | 353 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Properties under development and development costs: | |||||
Cash, cash equivalents and restricted cash | 148 | 531 | |||
Prepaid expenses and other assets, net | 23 | 19 | |||
Other receivables, net | 26 | 26 | |||
Total assets | 197 | 576 | |||
LIABILITIES | |||||
Accounts payable and accrued expenses | 26 | 31 | |||
TOTAL LIABILITIES (1) | 26 | 31 | |||
Long-Lived Assets Held-for-sale [Line Items] | |||||
Other receivables, net | 26 | $ 26 | |||
Sunset and Gardner Joint Venture [Member] | |||||
LIABILITIES | |||||
Operating Income (loss) | (23) | 208 | |||
Wilshire Joint Venture [Member] | |||||
LIABILITIES | |||||
Operating Income (loss) | $ (70) | $ (379) | |||
[1]As of March 31, 2023 and December 31, 2022, includes approximately $0.2 million and $0.6 million, respectively, of assets related to consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities. Refer to Note 3. “Variable Interest Entities”. |
LEASES (Details Textual)
LEASES (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Lessee, Operating Lease, Term of Contract | 9 years 1 month 6 days | |
Operating Leases Weighted Average Remaining Term | 5 years 6 months | |
Security Deposit | $ 100 | $ 100 |
Deferred Rent Receivables, Net | $ 679 | $ 631 |
LEASES LEASES (Income from Real
LEASES LEASES (Income from Real Estate Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Leases [Abstract] | |||
Lease income - operating leases | $ 477 | $ 577 | |
Variable lease income (1) | [1] | 150 | 157 |
Rental and reimbursements income | $ 627 | $ 734 | |
[1]Primarily includes tenant reimbursements for real estate taxes, insurance, consideration based on sales, common area maintenance, utilities, marketing, and certain other items including negative variable lease income. |
LEASES (Future Minimum Lease Pa
LEASES (Future Minimum Lease Payments) (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Remainder 2023 | $ 1,369 |
Lessor, Operating Lease, Payment to be Received, Year One | 1,860 |
Lessor, Operating Lease, Payment to be Received, Year Two | 1,763 |
Lessor, Operating Lease, Payment to be Received, Year Three | 1,476 |
Lessor, Operating Lease, Payment to be Received, Year Four | 1,121 |
Thereafter | 4,720 |
Total | $ 12,309 |
LEASE INTANGIBLES AND BELOW-M_3
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Lease intangibles, net | $ 289 | $ 308 | |
Below - Market Lease Liabilities, Cost | (247) | (247) | |
Below - Market Lease Liabilities, Accumulated amortization | 145 | 139 | |
Below Market Lease, Net | (102) | (108) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Below-Market Lease Liabilities | 6 | $ 5 | |
Above Market Leases | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Lease Intangibles, Cost | 0 | 0 | |
Lease Intangibles, Accumulated amortization | 0 | 0 | |
Lease intangibles, net | 0 | 0 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Lease Intangibles, Cost | 0 | 0 | |
Amortization of Intangible Assets | 0 | 1 | |
Leases, Acquired-in-Place | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Lease Intangibles, Cost | 765 | 765 | |
Lease Intangibles, Accumulated amortization | (476) | (457) | |
Lease intangibles, net | 289 | 308 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Lease Intangibles, Cost | 765 | $ 765 | |
Amortization of Intangible Assets | $ (19) | $ (22) |
LEASE INTANGIBLES AND BELOW-M_4
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES LEASE INTANGIBLE AND BELOW-MARKET LEASE AMORTIZATION (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Lease intangibles, net | $ 289 | $ 308 | |
Below Market Lease, Gross | 247 | 247 | |
Below - Market Lease Liabilities, Accumulated amortization | 145 | 139 | |
Below Market Lease, Net | 102 | 108 | |
Leases, Acquired-in-Place | |||
Amortization [Abstract] | |||
Amortization of Intangible Assets | (19) | $ (22) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Lease Intangibles, Cost | 765 | 765 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 476 | 457 | |
Lease intangibles, net | 289 | 308 | |
Amortization of Intangible Assets | 19 | 22 | |
Above Market Leases | |||
Amortization [Abstract] | |||
Amortization of Intangible Assets | 0 | 1 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Lease Intangibles, Cost | 0 | 0 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 | |
Lease intangibles, net | 0 | $ 0 | |
Amortization of Intangible Assets | $ 0 | $ (1) |
Deferred Costs, Capitalized, _3
Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Deferred Costs, Leasing, Gross | $ 444 | $ 440 | |
Deferred Costs, Leasing, Accumulated Amortization | (101) | (87) | |
Deferred Costs, Leasing, Net | 343 | $ 353 | |
Amortization of Deferred Charges | $ 14 | $ 11 |
NOTES PAYABLE, NET NOTES PAYABL
NOTES PAYABLE, NET NOTES PAYABLE, NET (Multi-Property Secured Financing) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | Jan. 09, 2024 | ||
Secured Debt | $ 18,000 | ||
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | $ 5 | $ 0 | |
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | 30-day SOFR | ||
Debt Instrument, Basis Spread on Variable Rate | 2.80% | ||
Derivative, Notional Amount | $ 18,000 | $ 18,000 | |
Payments of Derivative Issuance Costs | 260 | $ 17 | |
Derivative, Fair Value, Net | $ 200 | ||
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% |
NOTES PAYABLE, NET (Loans Secur
NOTES PAYABLE, NET (Loans Secured by Properties Under Development) (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Short-term Debt [Line Items] | |
Debt Instrument, Maturity Date | Jan. 09, 2024 |
Secured Debt [Member] | |
Short-term Debt [Line Items] | |
Debt Instrument, Description of Variable Rate Basis | 30-day SOFR |
Debt Instrument, Basis Spread on Variable Rate | 2.80% |
Minimum [Member] | Secured Debt [Member] | |
Short-term Debt [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
NOTES PAYABLE, NET (Future Prin
NOTES PAYABLE, NET (Future Principal Payments) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of maturities for notes payable outstanding | ||
Remainder of 2023 | $ 0 | |
2024 | 18,000 | |
Total (1) | 18,000 | |
Deferred Costs | 40 | |
Notes payable, net | $ 17,960 | $ 18,000 |
NOTES PAYABLE, NET NOTES PAYA_2
NOTES PAYABLE, NET NOTES PAYABLE, NET (Interest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Short-term Debt [Line Items] | ||
Interest Income (Expense), Net | $ 355 | $ 212 |
Interest expense | 368 | 320 |
Amortization of Deferred Financing Costs | 13 | 108 |
Interest Payable | 100 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Short-term Debt [Line Items] | ||
Interest Costs Incurred | 0 | 383 |
Amortization of Deferred Financing Costs | 0 | 44 |
Interest Costs Capitalized | $ 0 | $ 427 |
EQUITY (Share Redemption) (Deta
EQUITY (Share Redemption) (Details) - Common Stock - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Class of Stock [Line Items] | ||
Stock Redeemed or Called During Period, Shares | 0 | 0 |
Cumulative stock redeemed to date, shares | 878,458 | |
Cumulative stock redeemed to date, value | $ 6.2 |
EQUITY EQUITY (Quarterly Distri
EQUITY EQUITY (Quarterly Distribution (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Minimum Percentage of Taxable Income Distributed to Shareholders | 90% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Numerator - basic and diluted | |||
Net loss | $ (731) | $ (802) | |
Net loss attributable to non-controlling interests | (14) | (15) | |
Net loss attributable to common shares | $ (717) | $ (787) | |
Denominator - basic and diluted | |||
Basic weighted average common shares | 10,752,966 | 10,752,966 | |
Common Units (1) | [1] | 0 | 0 |
Diluted weighted average common shares | 10,752,966 | 10,752,966 | |
Earnings Per Share, Diluted | $ (0.07) | $ (0.07) | |
Earnings Per Share, Basic | $ (0.07) | $ (0.07) | |
Antidiluted Convertible Common Units of Redemption | 204,323 | ||
[1]he effect of 204,323 of 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) | 3 Months Ended |
Mar. 31, 2023 shares | |
Earnings Per Share [Abstract] | |
Antidiluted Convertible Common Units of Redemption | 204,323 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Summarized below are the related-party transactions | |||
Amounts due to affiliates. | $ 38 | $ 37 | |
Expensed Asset management Fees [Member] | Advisor Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 62 | $ 143 | |
Amounts due to affiliates. | 21 | 21 | |
Expensed Reimbursement Of Operating Expenses [Member] | Advisor Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 1 | 14 | |
Amounts due to affiliates. | 0 | 0 | |
Expensed Property Management Fees [Member] | Advisor Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 23 | 24 | |
Amounts due to affiliates. | 17 | 16 | |
Expensed [Member] | Advisor Fees [Member] | |||
Summarized below are the related-party transactions | |||
Related-party costs, Incurred | 86 | $ 181 | |
Amounts due to affiliates. | $ 38 | $ 37 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details) (Narrative) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Advisor Fees [Member] | |
Related Party Transaction [Line Items] | |
Company pays Advisor an acquisition and origination fee for cost of investments acquired | 1% |
Company pays Advisor a monthly asset management fee on all real estate investments | 0.60% |
Percentage of Average Invested Assets | 2% |
Percent of Net Income | 25% |
Advisor or its affiliates also will be paid disposition fees of a customary and competitive real estate commission | 50% |
SRT Manager [Member] | |
Related Party Transaction [Line Items] | |
Property Management Fee, Percent Fee | 4% |
Construction Management Fee, percentage | 5% |
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% |