Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | S-11 |
Amendment Flag | false |
Entity Registrant Name | MODIV INC. |
Entity Central Index Key | 0001645873 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Consolidated Balance Sheets (FY
Consolidated Balance Sheets (FY) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Real estate investments: | ||
Land | $ 65,358,321 | $ 86,775,988 |
Building and improvements | 272,397,472 | 309,904,890 |
Tenant origination and absorption costs | 23,792,057 | 27,266,610 |
Total investments in real estate property | 361,547,850 | 423,947,488 |
Accumulated depreciation and amortization | (32,091,211) | (20,411,794) |
Total Investment in Real Estate Property, Net | 329,456,639 | 403,535,694 |
Investment in unconsolidated entity (Note 5) | 10,002,368 | 10,388,588 |
Investment in unconsolidated entity | 10,002,368 | |
Total real estate investments, net | 339,459,007 | 413,924,282 |
Real estate investments held for sale, net | 24,585,739 | 0 |
Total real estate investments | 364,044,746 | 413,924,282 |
Cash and cash equivalents | 8,248,412 | 6,823,568 |
Restricted cash | 129,118 | 113,362 |
Receivable from sale of real estate property | 1,824,383 | 0 |
Tenant receivables | 6,665,790 | 6,224,764 |
Above-market lease intangibles, net | 820,842 | 1,251,734 |
Due from affiliates | 0 | 2,332 |
Prepaid expenses and other assets | 2,171,717 | 1,867,777 |
Interest rate swap derivatives | 0 | 34,567 |
Assets related to real estate investments held for sale | 1,079,361 | 0 |
Operating lease right-of-use asset | 0 | 2,386,877 |
Goodwill, net | 17,320,857 | 50,588,000 |
Intangible assets, net | 5,127,788 | 7,700,000 |
Total assets | 407,433,014 | 490,917,263 |
Liabilities and Equity | ||
Mortgage notes payable, net | 175,925,918 | 194,039,207 |
Mortgage notes payable related to real estate investments held for sale, net | 9,088,438 | 0 |
Total mortgage notes payable, net | 185,014,356 | 194,039,207 |
Unsecured credit facility, net | 5,978,276 | 7,649,861 |
Short-term notes payable | 0 | 4,800,000 |
Economic relief note payable | 517,000 | 0 |
Accounts payable, accrued and other liabilities | 7,579,624 | 11,555,161 |
Share repurchases payable | 2,980,559 | 0 |
Below-market lease intangibles, net | 12,565,737 | 14,591,359 |
Due to affiliates | 0 | 630,820 |
Interest rate swap derivatives | 1,743,889 | 1,021,724 |
Liabilities related to real estate investments held for sale | 801,337 | 0 |
Operating lease liability | 0 | 2,386,877 |
Total liabilities | 217,180,778 | 236,675,009 |
Commitments and contingencies | ||
Redeemable common stock | 7,365,568 | 14,069,692 |
Preferred stock, $0.001 par value, 50,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Additional paid-in-capital | 224,288,417 | |
Cumulative distributions and net losses | (92,012,686) | (31,168,948) |
Total Modiv Inc. equity | 132,283,668 | 189,569,562 |
Noncontrolling interest in the Operating Partnership | 50,603,000 | 50,603,000 |
Total equity | 182,886,668 | 240,172,562 |
Total liabilities and equity | 407,433,014 | 490,917,263 |
Previously Reported [Member] | ||
Liabilities and Equity | ||
Additional paid-in-capital | 224,272,542 | 220,714,676 |
Class C | ||
Liabilities and Equity | ||
Common stock, value issued | 7,874 | 23,647 |
Class C | Previously Reported [Member] | ||
Liabilities and Equity | ||
Common stock, value issued | 23,623 | |
Class S | ||
Liabilities and Equity | ||
Common stock, value issued | 63 | $ 187 |
Class S | Previously Reported [Member] | ||
Liabilities and Equity | ||
Common stock, value issued | $ 189 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (FY) (Parenthetical) - $ / shares | Jun. 30, 2021 | Feb. 01, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred stock (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | ||
Class C | |||||
Common stock (in usd per share) | $ 0.001 | $ 0.001 | $ 0.003 | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 | ||
Common stock, shares issued (in shares) | 7,490,414 | 7,874,541 | 7,882,489 | ||
Common stock, shares outstanding (in shares) | 7,490,414 | 7,874,541 | 7,882,489 | ||
Class S | |||||
Common stock (in usd per share) | $ 0.001 | $ 0.001 | $ 0.003 | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||
Common stock, shares issued (in shares) | 63,331 | 62,860 | 62,202 | ||
Common stock, shares outstanding (in shares) | 63,331 | 62,860 | 62,202 |
Consolidated Statements of Oper
Consolidated Statements of Operations (FY) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Rental income | $ 38,903,430 | $ 24,544,958 |
Expenses: | ||
Fees to affiliates | 0 | 3,305,021 |
General and administrative | 10,399,194 | 2,711,573 |
Self-management transaction expense | 201,920 | 1,468,913 |
Depreciation and amortization | 17,592,253 | 9,848,130 |
Interest expense | 11,460,747 | 7,382,610 |
Property expenses | 6,999,178 | 4,877,658 |
Impairment of real estate investment properties | 10,267,625 | 0 |
Impairment of goodwill and intangible assets (Note 3) | 34,572,403 | 0 |
Total expenses | 91,493,320 | 29,593,905 |
Less: Expenses reimbursed/fees waived by Sponsor or affiliates | 0 | (332,337) |
Net expenses | 91,493,320 | 29,261,568 |
Other operating income: | ||
Gain on real estate investments, net | 4,139,749 | 0 |
Real estate operating loss | (48,450,141) | (4,716,610) |
Other (expense) income: | ||
Lease termination expense (Note10) | (1,039,648) | 0 |
Interest income | 4,923 | 66,570 |
Income from investments in unconsolidated entities | 296,780 | 234,048 |
Other, net | 46,176 | 0 |
Other (expense) income, net | (691,769) | 300,618 |
Net loss | $ (49,141,910) | $ (4,415,992) |
Net loss per common share, basic and diluted (In USD Per Share) | $ (6.14) | $ (0.88) |
Weighted-average number of shares of common stock outstanding, basic and diluted (In Shares) | 8,006,276 | 5,012,158 |
Consolidated Statements of Equi
Consolidated Statements of Equity (FY) - USD ($) | Total | Common StockClass C | Common StockClass CPreviously Reported [Member] | Common StockClass S | Common StockClass SPreviously Reported [Member] | Additional Paid-in Capital | Additional Paid-in CapitalPreviously Reported [Member] | Cumulative Distributions and Net Losses | Total Modiv Inc. Equity | Noncontrolling Interest in the Operating Partnership |
Beginning balance (in shares) at Dec. 31, 2018 | 4,314,431 | 5,865 | ||||||||
Beginning balance at Dec. 31, 2018 | $ 103,092,769 | $ 12,943 | $ 18 | $ 119,247,245 | $ (16,167,437) | $ 103,092,769 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuance of common stock in offering (in shares) | 1,286,660 | 56,337 | ||||||||
Issuance of common stock in offerings | 40,908,373 | $ 3,860 | $ 169 | 40,904,344 | 40,908,373 | |||||
Issuance of common stock in merger (in shares) | 2,680,741 | |||||||||
Issuance of common stock in merger | 81,708,971 | $ 8,042 | 81,700,929 | 81,708,971 | ||||||
Contribution of equity in self-management transaction | 50,603,000 | 50,603,000 | ||||||||
Stock issued as compensation expense (in shares) | 10,335 | |||||||||
Stock issued as compensation expense | 315,000 | $ 31 | 314,969 | 315,000 | ||||||
Offering costs | (1,716,672) | (1,716,672) | (1,716,672) | |||||||
Reclassification to redeemable common stock | (7,484,065) | (7,484,065) | (7,484,065) | |||||||
Shares eliminated in self-management transaction (in shares) | (3,580) | |||||||||
Shares eliminated in self-management transaction | (107,400) | $ (10) | (107,390) | (107,400) | ||||||
Repurchases of common stock (in shares) | (406,098) | |||||||||
Repurchases of common stock | (12,145,903) | $ (1,219) | (12,144,684) | (12,145,903) | ||||||
Distributions declared | (10,585,519) | (10,585,519) | (10,585,519) | |||||||
Net loss | (4,415,992) | (4,415,992) | (4,415,992) | |||||||
Ending balance (in shares) at Dec. 31, 2019 | 7,882,489 | 62,202 | ||||||||
Ending balance at Dec. 31, 2019 | 240,172,562 | $ 7,882 | $ 23,647 | $ 62 | $ 187 | 220,730,566 | $ 220,714,676 | (31,168,948) | 189,569,562 | 50,603,000 |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuance of common stock in offering (in shares) | 486,043 | 993 | ||||||||
Issuance of common stock in offerings | 14,092,239 | $ 486 | $ 1 | 14,091,752 | 14,092,239 | |||||
Stock issued as compensation expense (in shares) | 4,227 | |||||||||
Stock issued as compensation expense | 129,583 | $ 4 | 129,579 | 129,583 | ||||||
Class P OP Units compensation | 177,567 | 177,567 | 177,567 | |||||||
Offering costs | (822,921) | (822,921) | (822,921) | |||||||
Reclassification to redeemable common stock | 4,393,863 | 4,393,863 | 4,393,863 | |||||||
Distributions declared | (7,459,393) | (7,459,393) | (7,459,393) | |||||||
Net loss | (51,033,196) | (51,033,196) | (51,033,196) | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 8,045,711 | 62,550 | ||||||||
Ending balance at Jun. 30, 2020 | 189,662,529 | $ 8,045 | $ 63 | 228,712,958 | (89,661,537) | 139,059,529 | 50,603,000 | |||
Beginning balance (in shares) at Dec. 31, 2019 | 7,882,489 | 62,202 | ||||||||
Beginning balance at Dec. 31, 2019 | 240,172,562 | $ 7,882 | 23,647 | $ 62 | 187 | 220,730,566 | 220,714,676 | (31,168,948) | 189,569,562 | 50,603,000 |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuance of common stock in offering (in shares) | 665,285 | 1,509 | ||||||||
Issuance of common stock in offerings | 17,867,390 | $ 1,996 | $ 5 | 17,865,389 | 17,867,390 | |||||
Stock issued as compensation expense (in shares) | 16,786 | |||||||||
Stock issued as compensation expense | 393,333 | $ 50 | 393,283 | 393,333 | ||||||
Class P OP Units compensation | 355,134 | 355,134 | 355,134 | |||||||
Offering costs | (1,205,317) | (1,205,317) | (1,205,317) | |||||||
Reclassification to redeemable common stock | 3,723,565 | 3,723,565 | 3,723,565 | |||||||
Repurchases of common stock (in shares) | (690,018) | (851) | ||||||||
Repurchases of common stock | (17,576,261) | $ (2,070) | $ (3) | (17,574,188) | (17,576,261) | |||||
Distributions declared | (11,701,828) | (11,701,828) | (11,701,828) | |||||||
Net loss | (49,141,910) | (49,141,910) | (49,141,910) | |||||||
Ending balance (in shares) at Dec. 31, 2020 | 7,874,541 | 62,860 | ||||||||
Ending balance at Dec. 31, 2020 | 182,886,668 | $ 7,874 | 23,623 | $ 63 | 189 | 224,288,417 | 224,272,542 | (92,012,686) | 132,283,668 | 50,603,000 |
Beginning balance (in shares) at Mar. 31, 2020 | 7,886,899 | 62,547 | ||||||||
Beginning balance at Mar. 31, 2020 | 191,294,801 | $ 7,887 | $ 63 | 224,865,187 | (84,181,336) | 140,691,801 | 50,603,000 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuance of common stock in offering (in shares) | 185,182 | 648 | ||||||||
Issuance of common stock in offerings | 4,851,043 | $ 185 | $ 1 | 4,850,857 | 4,851,043 | |||||
Stock issued as compensation expense (in shares) | 2,272 | |||||||||
Stock issued as compensation expense | 70,000 | $ 2 | 69,998 | 70,000 | ||||||
Class P OP Units compensation | 88,784 | 88,784 | 88,784 | |||||||
Offering costs | (265,270) | (265,270) | (265,270) | |||||||
Distributions declared | (3,270,291) | (3,270,291) | (3,270,291) | |||||||
Net loss | (2,209,910) | (2,209,910) | (2,209,910) | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 8,045,711 | 62,550 | ||||||||
Ending balance at Jun. 30, 2020 | 189,662,529 | $ 8,045 | $ 63 | 228,712,958 | (89,661,537) | 139,059,529 | 50,603,000 | |||
Beginning balance (in shares) at Dec. 31, 2020 | 7,874,541 | 62,860 | ||||||||
Beginning balance at Dec. 31, 2020 | 182,886,668 | $ 7,874 | $ 23,623 | $ 63 | $ 189 | 224,288,417 | $ 224,272,542 | (92,012,686) | 132,283,668 | 50,603,000 |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuance of common stock in offering (in shares) | 203,157 | 471 | ||||||||
Issuance of common stock in offerings | 4,561,611 | $ 203 | 4,561,408 | 4,561,611 | ||||||
Stock issued as compensation expense (in shares) | 8,521 | |||||||||
Stock issued as compensation expense | 201,250 | $ 9 | 201,241 | 201,250 | ||||||
Class P OP Units compensation | 1,191,732 | 1,191,732 | 1,191,732 | |||||||
Offering costs | (810,632) | (810,632) | (810,632) | |||||||
Reclassification to redeemable common stock | (1,068,807) | (1,068,807) | (1,068,807) | |||||||
Distributions declared | (3,968,187) | (3,968,187) | (3,968,187) | |||||||
Net loss | (1,905,491) | (1,905,491) | (1,905,491) | |||||||
Ending balance (in shares) at Jun. 30, 2021 | 7,490,414 | 63,331 | ||||||||
Ending balance at Jun. 30, 2021 | 168,041,287 | $ 7,490 | $ 63 | 215,317,098 | (97,886,364) | 117,438,287 | 50,603,000 | |||
Beginning balance (in shares) at Mar. 31, 2021 | 7,524,210 | 63,101 | ||||||||
Beginning balance at Mar. 31, 2021 | 172,146,694 | $ 7,524 | $ 63 | 216,444,117 | (94,908,010) | 121,543,694 | 50,603,000 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuance of common stock in offering (in shares) | 75,600 | 230 | ||||||||
Issuance of common stock in offerings | 1,804,545 | $ 76 | 1,804,469 | 1,804,545 | ||||||
Stock issued as compensation expense (in shares) | 4,470 | |||||||||
Stock issued as compensation expense | 110,000 | $ 4 | 109,996 | 110,000 | ||||||
Class P OP Units compensation | 657,087 | 657,087 | 657,087 | |||||||
Offering costs | (400,788) | (400,788) | (400,788) | |||||||
Reclassification to redeemable common stock | (626,133) | (626,133) | (626,133) | |||||||
Distributions declared | (1,976,511) | (1,976,511) | (1,976,511) | |||||||
Net loss | (1,001,843) | (1,001,843) | (1,001,843) | |||||||
Ending balance (in shares) at Jun. 30, 2021 | 7,490,414 | 63,331 | ||||||||
Ending balance at Jun. 30, 2021 | $ 168,041,287 | $ 7,490 | $ 63 | $ 215,317,098 | $ (97,886,364) | $ 117,438,287 | $ 50,603,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (FY) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Cash Flows from Operating Activities: | ||||
Net loss | $ (1,905,491) | $ (51,033,196) | $ (49,141,910) | $ (4,415,992) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 8,003,026 | 9,115,786 | 17,592,253 | 9,848,130 |
Stock issued as compensation expense | 1,371,732 | 350,900 | 712,217 | 372,500 |
Deferred rents | (702,978) | (631,054) | (1,591,012) | (1,309,272) |
Amortization of deferred lease incentives | 105,541 | 30,602 | 61,204 | 61,203 |
Amortization of deferred financing costs and premiums | 1,025,093 | 638,200 | ||
Amortization of above-market lease intangibles | 64,913 | 98,966 | 169,857 | 97,045 |
Amortization of below-market lease intangibles | (735,150) | (774,589) | (1,541,313) | (646,745) |
Impairment of real estate investment properties | (400,999) | 9,506,525 | 10,267,625 | 0 |
Impairment of goodwill and intangible assets (Note 3) | 0 | 34,572,403 | 34,572,403 | 0 |
Gain on sale of real estate investments, net | (289,642) | 0 | (4,139,749) | 0 |
Unrealized loss on interest rate swap valuation | (517,719) | 1,292,752 | 770,898 | 820,496 |
Income from investments in unconsolidated entities | (147,302) | (146,411) | (296,780) | (234,048) |
Distributions from investments in unconsolidated entities | 161,967 | 334,189 | 683,000 | 1,029,786 |
Amortization of deferred financing costs and premium/discount | 199,693 | 298,283 | ||
Changes in operating assets and liabilities: | ||||
Decrease (increase) in tenant receivables | 569,375 | (16,688) | 122,292 | (946,209) |
Increase in prepaid expenses and other assets | (229,695) | (606,696) | (357,458) | (1,374,345) |
(Decrease) increase in accounts payable, accrued and other liabilities | (1,946,918) | (1,515,624) | (2,703,292) | 1,770,491 |
Decrease in due to affiliates | 0 | (631,702) | (628,488) | (962,336) |
Net cash provided by operating activities | 3,083,353 | 3,382,882 | 5,576,840 | 4,748,904 |
Cash Flows from Investing Activities: | ||||
Acquisition of real estate investments | 0 | (24,820,410) | ||
Additions to intangible assets | (111,750) | (533,041) | (566,102) | 0 |
Net proceeds from sale of real estate investments | 13,221,509 | 0 | 27,008,028 | 0 |
Improvements to existing real estate investments | (673,631) | (1,665,180) | ||
Payment of tenant improvements | 0 | (3,486,927) | ||
Payments of acquisition fees to affiliate | 0 | (746,459) | ||
Cash acquired from acquisitions of affiliates | 0 | 1,016,507 | ||
Payments of lease incentives | 0 | (990,000) | (990,000) | 0 |
Collection of refundable purchase deposit | 0 | 100,000 | ||
Additions to existing real estate investments | (309,717) | (2,170,913) | ||
Net cash provided by (used in) investing activities | 14,624,425 | (3,693,954) | 24,778,295 | (29,602,469) |
Cash Flows from Financing Activities: | ||||
Borrowings from unsecured credit facility | 6,000,000 | 4,260,000 | 4,260,000 | 12,609,000 |
Repayments of unsecured credit facility | (9,000,000) | 0 | (6,000,000) | (13,869,000) |
Proceeds from mortgage notes payable | 25,436,000 | 4,000,000 | 35,705,500 | 23,100,000 |
Principal payments on mortgage notes payable | (24,399,915) | (2,003,558) | (45,299,688) | (14,879,217) |
Proceeds from economic relief note payable | 0 | 527,000 | 517,000 | 0 |
Principal payments on short-term notes payable | 0 | (4,800,000) | (4,800,000) | 0 |
Payments of deferred financing costs to third parties | (381,076) | (56,997) | (387,341) | (495,148) |
Refundable loan deposit | (81,196) | 0 | (18,804) | 0 |
Payments of financing fees to affiliates | 0 | (107,500) | ||
Proceeds from issuance of common stock and investor deposits | 2,299,380 | 9,427,526 | 10,908,856 | 34,555,691 |
Payments of offering costs | (810,632) | (822,921) | (1,205,317) | (1,716,672) |
Liabilities for selling commissions on Class S common stock | 736 | 1,302 | ||
Repurchases of common stock | (13,046,857) | (9,987,775) | (17,576,261) | (12,145,903) |
Distributions paid to common stockholders | (1,726,567) | (3,090,265) | (5,019,216) | (4,017,986) |
Net cash (used in) provided by financing activities | (15,710,863) | (2,546,990) | (28,914,535) | 23,034,567 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,996,915 | (2,858,062) | 1,440,600 | (1,818,998) |
Cash, cash equivalents and restricted cash, beginning of period | 8,377,530 | 6,936,930 | 6,936,930 | 8,755,928 |
Cash, cash equivalents and restricted cash, end of period | 10,374,445 | 4,078,868 | 8,377,530 | 6,936,930 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 4,147,114 | 4,678,783 | 6,692,697 | 5,862,393 |
Supplemental disclosure of noncash flow information: | ||||
Reclassifications to redeemable common stock | 3,723,565 | 7,484,065 | ||
Reinvested distributions from common stockholders | 2,262,231 | 4,664,713 | 6,958,534 | 6,352,682 |
Increase (decrease) in share repurchases payable | 2,980,559 | (584,676) | ||
Increase in accrued distributions | 23,256 | 295,585 | 275,922 | 214,851 |
Unpaid portion of capitalized costs related to acquisitions of affiliates | 0 | 1,570,622 | ||
Real estate investments held for sale, net | (19,209,993) | (17,926,407) | (25,217,972) | 0 |
Assets related to real estate investments held for sale, net | 408,096 | 725,990 | (1,079,361) | 0 |
Decrease in above-market lease intangibles, net | (50,549) | 0 | ||
Mortgage notes payable related to real estate investments held for sale, net | 4,707,012 | 9,549,467 | 9,088,438 | 0 |
Liabilities related to real estate investments held for sale, net | 573,904 | $ 196,938 | 801,337 | 0 |
Decrease in below-market lease intangibles, net | 325,734 | 0 | ||
Decrease in interest swap derivatives | 14,166 | 0 | ||
Goodwill in self-management transaction | $ (17,320,857) | (17,320,857) | (50,588,000) | |
BrixInvest | ||||
Supplemental disclosure of noncash flow information: | ||||
Net liabilities assumed | 0 | 1,581,580 | ||
Goodwill in self-management transaction | 0 | (50,588,000) | ||
Intangible assets acquired | 0 | (7,700,000) | ||
Operating lease right-of-use asset acquired / operating lease liability assumed | (2,386,877) | 2,386,877 | ||
Notes payable and short-term credit facility assumed | 0 | 6,230,820 | ||
Issuance of Class M OP Units and Class P OP Units in the Operating Partnership | 0 | 50,603,000 | ||
Cancellation of investment in the Company | 0 | 107,400 | ||
REIT I | ||||
Supplemental disclosure of noncash flow information: | ||||
Real estate properties acquired | 0 | (148,054,617) | ||
Mortgage debt assumed | 0 | 62,985,425 | ||
Net liabilities assumed | 0 | 268,732 | ||
Cancellation of investment in REIT I | 0 | 3,091,489 | ||
Class C common stock issued | $ 0 | $ 81,708,971 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Q2) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Real estate investments: | |||
Land | $ 65,510,507 | $ 65,358,321 | $ 86,775,988 |
Buildings and improvements | 278,389,463 | 272,397,472 | 309,904,890 |
Tenant origination and absorption costs | 23,570,335 | 23,792,057 | 27,266,610 |
Total investments in real estate property | 367,470,305 | 361,547,850 | 423,947,488 |
Accumulated depreciation and amortization | (38,377,298) | (32,091,211) | (20,411,794) |
Total Investment in Real Estate Property, Net | 329,093,007 | 329,456,639 | 403,535,694 |
Investment in unconsolidated entity (Note 5) | 10,002,368 | 10,388,588 | |
Investment in unconsolidated entity | 9,987,703 | 10,002,368 | |
Total real estate investments, net | 339,080,710 | 339,459,007 | 413,924,282 |
Real estate investments held for sale, net | 5,375,746 | 24,585,739 | 0 |
Total real estate investments | 344,456,456 | 364,044,746 | 413,924,282 |
Cash and cash equivalents | 7,865,974 | 8,248,412 | 6,823,568 |
Restricted cash | 2,508,471 | 129,118 | 113,362 |
Receivable from sale of real estate property | 0 | 1,824,383 | 0 |
Tenant receivables | 7,155,823 | 6,665,790 | |
Above-market lease intangibles, net | 755,929 | 820,842 | 1,251,734 |
Prepaid expenses and other assets | 4,506,724 | 2,171,717 | 1,867,777 |
Other assets related to real estate investments held for sale | 671,265 | 1,079,361 | 0 |
Goodwill, net | 17,320,857 | 17,320,857 | 50,588,000 |
Intangible assets, net | 4,313,799 | 5,127,788 | 7,700,000 |
Total assets | 389,555,298 | 407,433,014 | 490,917,263 |
Liabilities and Equity | |||
Mortgage notes payable, net | 181,576,606 | 175,925,918 | 194,039,207 |
Mortgage notes payable related to real estate investments held for sale, net | 4,381,426 | 9,088,438 | 0 |
Total mortgage notes payable, net | 185,958,032 | 185,014,356 | 194,039,207 |
Credit facility, net | 2,889,303 | 5,978,276 | 7,649,861 |
Economic relief note payable | 0 | 517,000 | 0 |
Accounts payable, accrued and other liabilities | 7,953,386 | 7,579,624 | 11,555,161 |
Share repurchases payable | 1,001,243 | 2,980,559 | 0 |
Below-market lease intangibles, net | 11,830,587 | 12,565,737 | 14,591,359 |
Interest rate swap derivatives | 1,240,336 | 1,743,889 | 1,021,724 |
Other liabilities related to real estate investments held for sale | 227,433 | 801,337 | 0 |
Total liabilities | 211,100,320 | 217,180,778 | 236,675,009 |
Commitments and contingencies | |||
Redeemable common stock | 10,413,691 | 7,365,568 | 14,069,692 |
Preferred stock, $0.001 par value, 50,000,000 shares authorized, no shares issued and outstanding | 0 | 0 | 0 |
Additional paid-in-capital | 215,317,098 | 224,288,417 | |
Cumulative distributions and net losses | (97,886,364) | (92,012,686) | (31,168,948) |
Total Modiv Inc. equity | 117,438,287 | 132,283,668 | 189,569,562 |
Noncontrolling interests in the Operating Partnership | 50,603,000 | 50,603,000 | 50,603,000 |
Total equity | 168,041,287 | 182,886,668 | 240,172,562 |
Total liabilities and equity | 389,555,298 | 407,433,014 | 490,917,263 |
Common Class C | |||
Liabilities and Equity | |||
Common stock, value issued | 7,490 | 7,874 | 23,647 |
Common Class S | |||
Liabilities and Equity | |||
Common stock, value issued | $ 63 | $ 63 | $ 187 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Q2) (Parenthetical) - $ / shares | Jun. 30, 2021 | Feb. 01, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred Stock | |||||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | ||
Common Class C | |||||
Common Stock | |||||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.003 | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 | ||
Common stock, shares outstanding (in shares) | 7,490,414 | 7,874,541 | 7,882,489 | ||
Common stock, shares issued (in shares) | 7,490,414 | 7,874,541 | 7,882,489 | ||
Common Class S | |||||
Common Stock | |||||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.003 | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||
Common stock, shares outstanding (in shares) | 63,331 | 62,860 | 62,202 | ||
Common stock, shares issued (in shares) | 63,331 | 62,860 | 62,202 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Q2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Rental income | $ 9,173,000 | $ 9,277,020 | $ 18,213,863 | $ 20,331,429 |
Expenses: | ||||
General and administrative | 2,875,869 | 2,369,358 | 6,158,753 | 4,924,363 |
Depreciation and amortization | 3,978,323 | 4,480,262 | 8,003,026 | 9,115,786 |
Interest expense | 2,098,649 | 2,558,877 | 3,879,785 | 6,463,533 |
Property expenses | 1,697,886 | 1,854,637 | 3,452,833 | 3,803,356 |
Impairment of real estate investment properties | (400,999) | 349,457 | (400,999) | 9,506,525 |
Impairment of goodwill and intangible assets | 0 | 0 | 0 | 34,572,403 |
Reserve for loan guarantee | 0 | (4,253) | 0 | 3,125,037 |
Total expenses | 10,249,728 | 11,608,338 | 21,093,398 | 71,511,003 |
Other operating income: | ||||
Gain on sale of real estate investments | 0 | 0 | 289,642 | 0 |
Real estate operating loss | (1,076,728) | (2,331,318) | (2,589,893) | (51,179,574) |
Other income: | ||||
Interest income | 51 | 605 | 100 | 4,822 |
Income from investments in unconsolidated entities | 74,834 | 125,658 | 147,302 | 146,411 |
Gain on forgiveness of economic relief note payable | 0 | 0 | 517,000 | 0 |
Other | 0 | (4,855) | 20,000 | (4,855) |
Other (expense) income, net | 74,885 | 121,408 | 684,402 | 146,378 |
Net loss | $ (1,001,843) | $ (2,209,910) | $ (1,905,491) | $ (51,033,196) |
Net loss per share, basic (in usd per share) | $ (0.13) | $ (0.28) | $ (0.25) | $ (6.39) |
Net loss per share, diluted (in usd per share) | $ (0.13) | $ (0.28) | $ (0.25) | $ (6.39) |
Weighted-average number of common shares outstanding, basic (in shares) | 7,614,196 | 8,032,467 | 7,630,401 | 7,992,108 |
Weighted-average number of common shares outstanding, diluted (in shares) | 7,614,196 | 8,032,467 | 7,630,401 | 7,992,108 |
Distributions declared per common share (in usd per share) | $ 0.2625 | $ 0.4080 | $ 0.5250 | $ 0.9330 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity (Q2) - USD ($) | Total | Common StockCommon Class C | Common StockCommon Class S | Additional Paid-in Capital | Cumulative Distributions and Net Losses | Total Stockholders' Equity | Noncontrolling Interests in the Operating Partnership |
Beginning balance (in shares) at Dec. 31, 2018 | 4,314,431 | 5,865 | |||||
Beginning balance at Dec. 31, 2018 | $ 103,092,769 | $ 12,943 | $ 18 | $ 119,247,245 | $ (16,167,437) | $ 103,092,769 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 1,286,660 | 56,337 | |||||
Issuance of common stock | 40,908,373 | $ 3,860 | $ 169 | 40,904,344 | 40,908,373 | ||
Stock compensation expense (in shares) | 10,335 | ||||||
Stock compensation expense | 315,000 | $ 31 | 314,969 | 315,000 | |||
Offering costs | (1,716,672) | (1,716,672) | (1,716,672) | ||||
Reclassification to redeemable common stock | (7,484,065) | (7,484,065) | (7,484,065) | ||||
Distributions declared | (10,585,519) | (10,585,519) | (10,585,519) | ||||
Net loss | (4,415,992) | (4,415,992) | (4,415,992) | ||||
Ending balance (in shares) at Dec. 31, 2019 | 7,882,489 | 62,202 | |||||
Ending balance at Dec. 31, 2019 | 240,172,562 | $ 7,882 | $ 62 | 220,730,566 | (31,168,948) | 189,569,562 | 50,603,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 486,043 | 993 | |||||
Issuance of common stock | 14,092,239 | $ 486 | $ 1 | 14,091,752 | 14,092,239 | ||
Stock compensation expense (in shares) | 4,227 | ||||||
Stock compensation expense | 129,583 | $ 4 | 129,579 | 129,583 | |||
Class OP Units compensation expense | 177,567 | 177,567 | 177,567 | ||||
Offering costs | (822,921) | (822,921) | (822,921) | ||||
Reclassification to redeemable common stock | 4,393,863 | 4,393,863 | 4,393,863 | ||||
Repurchase of common stock (in shares) | (327,047) | (645) | |||||
Repurchase of common stock | (9,987,775) | $ (327) | $ 0 | (9,987,448) | (9,987,775) | ||
Distributions declared | (7,459,393) | (7,459,393) | (7,459,393) | ||||
Net loss | (51,033,196) | (51,033,196) | (51,033,196) | ||||
Ending balance (in shares) at Jun. 30, 2020 | 8,045,711 | 62,550 | |||||
Ending balance at Jun. 30, 2020 | 189,662,529 | $ 8,045 | $ 63 | 228,712,958 | (89,661,537) | 139,059,529 | 50,603,000 |
Beginning balance (in shares) at Dec. 31, 2019 | 7,882,489 | 62,202 | |||||
Beginning balance at Dec. 31, 2019 | 240,172,562 | $ 7,882 | $ 62 | 220,730,566 | (31,168,948) | 189,569,562 | 50,603,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 665,285 | 1,509 | |||||
Issuance of common stock | 17,867,390 | $ 1,996 | $ 5 | 17,865,389 | 17,867,390 | ||
Stock compensation expense (in shares) | 16,786 | ||||||
Stock compensation expense | 393,333 | $ 50 | 393,283 | 393,333 | |||
Class OP Units compensation expense | 355,134 | 355,134 | 355,134 | ||||
Offering costs | (1,205,317) | (1,205,317) | (1,205,317) | ||||
Reclassification to redeemable common stock | 3,723,565 | 3,723,565 | 3,723,565 | ||||
Distributions declared | (11,701,828) | (11,701,828) | (11,701,828) | ||||
Net loss | (49,141,910) | (49,141,910) | (49,141,910) | ||||
Ending balance (in shares) at Dec. 31, 2020 | 7,874,541 | 62,860 | |||||
Ending balance at Dec. 31, 2020 | 182,886,668 | $ 7,874 | $ 63 | 224,288,417 | (92,012,686) | 132,283,668 | 50,603,000 |
Beginning balance (in shares) at Mar. 31, 2020 | 7,886,899 | 62,547 | |||||
Beginning balance at Mar. 31, 2020 | 191,294,801 | $ 7,887 | $ 63 | 224,865,187 | (84,181,336) | 140,691,801 | 50,603,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 185,182 | 648 | |||||
Issuance of common stock | 4,851,043 | $ 185 | $ 1 | 4,850,857 | 4,851,043 | ||
Stock compensation expense (in shares) | 2,272 | ||||||
Stock compensation expense | 70,000 | $ 2 | 69,998 | 70,000 | |||
Class OP Units compensation expense | 88,784 | 88,784 | 88,784 | ||||
Offering costs | (265,270) | (265,270) | (265,270) | ||||
Repurchase of common stock (in shares) | (28,641) | (645) | |||||
Repurchase of common stock | (896,628) | $ (29) | $ (1) | (896,598) | (896,628) | ||
Distributions declared | (3,270,291) | (3,270,291) | (3,270,291) | ||||
Net loss | (2,209,910) | (2,209,910) | (2,209,910) | ||||
Ending balance (in shares) at Jun. 30, 2020 | 8,045,711 | 62,550 | |||||
Ending balance at Jun. 30, 2020 | 189,662,529 | $ 8,045 | $ 63 | 228,712,958 | (89,661,537) | 139,059,529 | 50,603,000 |
Beginning balance (in shares) at Dec. 31, 2020 | 7,874,541 | 62,860 | |||||
Beginning balance at Dec. 31, 2020 | 182,886,668 | $ 7,874 | $ 63 | 224,288,417 | (92,012,686) | 132,283,668 | 50,603,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 203,157 | 471 | |||||
Issuance of common stock | 4,561,611 | $ 203 | 4,561,408 | 4,561,611 | |||
Stock compensation expense (in shares) | 8,521 | ||||||
Stock compensation expense | 201,250 | $ 9 | 201,241 | 201,250 | |||
Class OP Units compensation expense | 1,191,732 | 1,191,732 | 1,191,732 | ||||
Offering costs | (810,632) | (810,632) | (810,632) | ||||
Reclassification to redeemable common stock | (1,068,807) | (1,068,807) | (1,068,807) | ||||
Repurchase of common stock (in shares) | (595,805) | ||||||
Repurchase of common stock | (13,046,857) | $ (596) | (13,046,261) | (13,046,857) | |||
Distributions declared | (3,968,187) | (3,968,187) | (3,968,187) | ||||
Net loss | (1,905,491) | (1,905,491) | (1,905,491) | ||||
Ending balance (in shares) at Jun. 30, 2021 | 7,490,414 | 63,331 | |||||
Ending balance at Jun. 30, 2021 | 168,041,287 | $ 7,490 | $ 63 | 215,317,098 | (97,886,364) | 117,438,287 | 50,603,000 |
Beginning balance (in shares) at Mar. 31, 2021 | 7,524,210 | 63,101 | |||||
Beginning balance at Mar. 31, 2021 | 172,146,694 | $ 7,524 | $ 63 | 216,444,117 | (94,908,010) | 121,543,694 | 50,603,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 75,600 | 230 | |||||
Issuance of common stock | 1,804,545 | $ 76 | 1,804,469 | 1,804,545 | |||
Stock compensation expense (in shares) | 4,470 | ||||||
Stock compensation expense | 110,000 | $ 4 | 109,996 | 110,000 | |||
Class OP Units compensation expense | 657,087 | 657,087 | 657,087 | ||||
Offering costs | (400,788) | (400,788) | (400,788) | ||||
Reclassification to redeemable common stock | (626,133) | (626,133) | (626,133) | ||||
Repurchase of common stock (in shares) | (113,866) | ||||||
Repurchase of common stock | (2,671,764) | $ (114) | (2,671,650) | (2,671,764) | |||
Distributions declared | (1,976,511) | (1,976,511) | (1,976,511) | ||||
Net loss | (1,001,843) | (1,001,843) | (1,001,843) | ||||
Ending balance (in shares) at Jun. 30, 2021 | 7,490,414 | 63,331 | |||||
Ending balance at Jun. 30, 2021 | $ 168,041,287 | $ 7,490 | $ 63 | $ 215,317,098 | $ (97,886,364) | $ 117,438,287 | $ 50,603,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Q2) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (1,905,491) | $ (51,033,196) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 8,003,026 | 9,115,786 |
Stock compensation expense | 1,371,732 | 350,900 |
Deferred rents | (702,978) | (631,054) |
Amortization of deferred lease incentives | 105,541 | 30,602 |
Amortization of deferred financing costs and premium/discount | 199,693 | 298,283 |
Amortization of above-market lease intangibles | 64,913 | 98,966 |
Amortization of below-market lease intangibles | (735,150) | (774,589) |
Impairment of real estate investment properties | (400,999) | 9,506,525 |
Impairment of goodwill and intangible assets | 0 | 34,572,403 |
Reserve for loan guarantee | 0 | 3,125,037 |
Gain on forgiveness of economic relief note payable | (517,000) | 0 |
Gain on sale of real estate investments | (289,642) | 0 |
Unrealized (gain) loss on interest rate swap valuation | (517,719) | 1,292,752 |
Income from investment in unconsolidated entity | (147,302) | (146,411) |
Distributions from investment in unconsolidated entity | 161,967 | 334,189 |
Change in operating assets and liabilities: | ||
Decrease (increase) in tenant receivables | 569,375 | (16,688) |
Increase in prepaid and other assets | (229,695) | (606,696) |
Decrease in accounts payable, accrued and other liabilities | (1,946,918) | (1,515,624) |
Decrease in due to affiliate | 0 | (631,702) |
Operating lease right-of-use asset/operating lease liability, net | 0 | 13,399 |
Net cash provided by operating activities | 3,083,353 | 3,382,882 |
Cash Flows from Investing Activities: | ||
Additions to existing real estate investments | (309,717) | (2,170,913) |
Additions to intangible assets | (111,750) | (533,041) |
Collection of receivable from sale of real estate property | 1,824,383 | 0 |
Net proceeds from sale of real estate investments | 13,221,509 | 0 |
Lease incentives | 0 | (990,000) |
Net cash provided by (used in) investing activities | 14,624,425 | (3,693,954) |
Cash Flows from Financing Activities: | ||
Borrowings from credit facilities | 6,000,000 | 4,260,000 |
Repayments of credit facilities | (9,000,000) | 0 |
Proceeds from mortgage notes payable | 25,436,000 | 4,000,000 |
Principal payments on mortgage notes payable | (24,399,915) | (2,003,558) |
Proceeds from economic relief notes payable | 0 | 527,000 |
Principal payments on short-term notes payable | 0 | (4,800,000) |
Refundable loan deposits | (81,196) | 0 |
Payments of deferred financing costs to third parties | (381,076) | (56,997) |
Proceeds from issuance of common stock and investor deposits | 2,299,380 | 9,427,526 |
Payments of offering costs | (810,632) | (822,921) |
Repurchases of common stock | (13,046,857) | (9,987,775) |
Distributions paid to common stockholders | (1,726,567) | (3,090,265) |
Net cash (used in) provided by financing activities | (15,710,863) | (2,546,990) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,996,915 | (2,858,062) |
Cash, cash equivalents and restricted cash, beginning of period | 8,377,530 | 6,936,930 |
Cash, cash equivalents and restricted cash, end of period | 10,374,445 | 4,078,868 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest | 4,147,114 | 4,678,783 |
Supplemental Schedule of Noncash Investing and Financing Activities: | ||
Reclassification (to) from redeemable common stock | (1,068,807) | 4,393,863 |
Reinvested distributions from common stockholders | 2,262,231 | 4,664,713 |
(Decrease) increase in share repurchases payable | (1,979,316) | 750,684 |
Deferred lease incentive | (2,128,538) | 0 |
Accrued distributions | 23,256 | 295,585 |
Real estate investments held for sale, net | 19,209,993 | 17,926,407 |
Other assets related to real estate investments held for sale | 408,096 | 725,990 |
Increase in above-market lease intangibles, net | (50,549) | (198,517) |
Mortgage notes payable related to real estate investments held for sale, net | (4,707,012) | (9,549,467) |
Other liabilities related to real estate investments held for sale | (573,904) | (196,938) |
Increase in below-market lease intangibles, net | 324,734 | 73,505 |
Increase in interest swap derivatives | $ 14,166 | $ 0 |
BUSINESS AND ORGANIZATION (FY)
BUSINESS AND ORGANIZATION (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
BUSINESS AND ORGANIZATION | NOTE 1. BUSINESS AND ORGANIZATION Modiv Inc. (the “Company”) was incorporated on May 15, 2015 as a Maryland corporation. The Company has the authority to issue 450,000,000 shares of stock, consisting of 50,000,000 shares of preferred stock, $0.001 par value per share, 300,000,000 shares of Class C common stock, $0.001 par value per share, and 100,000,000 shares of Class S common stock, $0.001 par value per share. Effective February 1, 2021, with the authorization of the board of directors, the Company filed Articles of Amendment to the Company’s charter in the State of Maryland in order to effect a 1:3 reverse stock split of the Company’s Class C common stock and Class S common stock and, following the implementation of the reverse stock split, to decrease the par value of each post-split share of the Company’s Class C common stock and Class S common stock from $0.003 per share to $0.001 per share. Since December 31, 2019, the Company has been internally managed following its December 31, 2019 acquisition of the business of BrixInvest, LLC, a Delaware limited liability company and the Company’s former sponsor (“BrixInvest”), and the Company’s merger with Rich Uncles Real Estate Investment Trust I (“REIT I”) on December 31, 2019 pursuant to an Agreement and Plan of Merger dated September 19, 2019 whereby REIT I merged with and into Katana Merger Sub, LP (“Merger Sub”), a Delaware limited partnership and wholly-owned subsidiary of the Company, with Merger Sub surviving as a direct, wholly-owned subsidiary of the Company (the “Merger”). Through the Merger and acquisitions, the Company has created one of the largest non-listed real estate investment funds to be raised via crowdfunding technology and the first real estate crowdfunding platform to be completely investor-owned. The Company plans to expand beyond its traditional single-tenant portfolio of triple-net leased properties to provide individual investors access to a diversified portfolio of real estate and real estate-related investments designed to provide both income and long-term growth. The Company will continue to seek opportunities to be an aggregator within the non-listed real estate product industry, utilizing the combination of its deep understanding of both the crowdfunding and real estate markets and the strength of its stockholder-owned, self-managed business model. The Company holds its investments in real property through special purpose limited liability companies which are wholly-owned subsidiaries of Modiv Operating Partnership, LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership was formed on January 28, 2016. The Company is the sole general partner of and owned an 83% partnership interest in the Operating Partnership on June 30, 2021. The Operating Partnership limited partners include holders of several classes of ownership with various vesting and enhancement terms as further described in Note 11. As of June 30, 2021, the Company's portfolio of approximately 2.3 million square feet of aggregate leasable space consisted of investments in 38 real estate properties, comprised of: 12 retail properties, 14 office properties and 12 industrial properties, including one industrial property which is classified as held for sale as of June 30, 2021 and an approximate 72.7% tenant-in-common interest in a Santa Clara, California industrial property (the “TIC Interest”). The Company's investments in 38 real estate properties includes 14 of the original 20 operating properties which were acquired from REIT I through the Merger on December 31, 2019 (see Note 3 for additional discussion). Self-Management Transaction and Merger on December 31, 2019 The Company was externally managed through December 31, 2019 by its former external advisor, Rich Uncles NNN REIT Operator, LLC, a Delaware limited liability company. On December 31, 2019, the Company merged with REIT 1 and a self-management transaction was completed, whereby the Company effectuated a contribution agreement dated September 19, 2019 (the “Contribution Agreement”) pursuant to which the Company acquired substantially all of the assets and assumed certain liabilities of its former external advisor and former sponsor in exchange for units of limited partnership interest in the Operating Partnership (the “Self-Management Transaction”). As a result of the completion of the Self-Management Transaction, the Company became self-managed and eliminated all fees for acquisitions, dispositions and management of its properties, except for third-party property management fees. Following completion of the Self-Management Transaction and the issuance of various other tranches of limited partnership interests, the Company owned an approximately 83% partnership interest in the Operating Partnership as of June 30, 2021. Offerings On July 15, 2015, the Company filed a registration statement on Form S-11 (File No. 333-205684) with the SEC to register an initial public offering of a maximum of 30,000,000 (adjusted for the 1:3 reverse stock split) of its shares of common stock for sale to the public (the “Primary Offering”). The Company also registered a maximum of 3,333,333 (adjusted for the 1:3 reverse stock split) of its shares of common stock pursuant to the Company's distribution reinvestment plan (the “DRP”) (the “Initial DRP Offering” and together with the Primary Offering, the “Initial Registered Offering”). During 2016, the SEC declared the Company's registration statement effective and the Company began offering shares of common stock to the public. Pursuant to the Initial Registered Offering, the Company sold shares of Class C common stock directly to investors, with a minimum investment in shares of $500. Commencing in August 2017, the Company began selling shares of its Class C common stock only to U.S. persons as defined under Rule 903 promulgated under the Securities Act, and began selling shares of its Class S common stock as a result of the commencement of the Class S Offering (as defined below) to non-U.S. Persons. In August 2017, the Company began offering up to 33,333,333 shares (adjusted for the 1:3 reverse stock split) of Class S common stock exclusively to non-U.S. Persons as defined under Rule 903 promulgated under the Securities Act, pursuant to an exemption from the registration requirements of the Securities Act and in accordance with Regulation S of the Securities Act (the “Class S Offering” and, together with the Registered Offerings (as defined below) and the Private Offering (as defined below, the “Offerings”). The Class S common stock has similar features and rights as the Class C common stock, including with respect to voting and liquidation, except that the Class S common stock offered in the Class S Offering may be sold only to non-U.S. Persons and may be sold through brokers or other persons who may be paid upfront and deferred selling commissions and fees. On December 23, 2019, the Company commenced a follow-on offering pursuant to a new registration statement on Form S-11 (File No. 333-231724) (the “Follow-on Offering” and, together with the Initial Registered Offering and the 2021 DRP Offering (as defined below), the “Registered Offerings”), which registered the offer and sale of up to $800,000,000 in share value of Class C common stock, including $725,000,000 in share value of Class C common stock pursuant to the primary portion of the Follow-on Offering and $75,000,000 in share value of Class C common stock pursuant to the Company's DRP. The Company ceased offering shares pursuant to the Initial Registered Offering concurrently with the commencement of the Follow-on Offering. In response to the significant economic impacts of the COVID-19 pandemic, effective as of the close of business on May 7, 2020, the Company's board of directors temporarily suspended the primary portion of the Company's Follow-on Offering and Class S Offering until such time as the board of directors approved and established an updated estimated net asset value (“NAV”) per share of the Company’s common stock and determined to resume such primary offerings. On May 20, 2020, the Company's board of directors approved and established an updated estimated NAV per share of the Company's common stock of $ 21.01 Commencing on June 1, 2020, the Company's board of directors resumed the primary portions of the Follow-on Offering and the Class S Offering. The purchase price per share in the primary portion of the Follow-on Offering was decreased from $30.81 (unaudited and adjusted for the 1:3 reverse stock split) to $ 21.01 21.01 21.01 On January 22, 2021, with the authorization of the board of directors, the Company amended and restated its DRP with respect to the Company's shares of Class C common stock in order to reflect its corporate name change and to remove the ability of the Company's stockholders to elect to reinvest only a portion of their cash distributions in shares through the DRP so that investors who elect to participate in the DRP must reinvest all cash distributions in shares. In addition, the amended and restated DRP provides for determinations of the NAV per share by the board of directors more frequently than annually. The amended and restated DRP was effective with respect to distributions that were paid in February 2021. On January 22, 2021, the Company filed a registration statement on Form S-3 (File No. 333-252321) to register a maximum of $100,000,000 in share value of Class C common stock to be issued pursuant to the amended and restated DRP (the “2021 DRP Offering” and, collectively with the Initial DRP Offering, the “Registered DRP Offering”). The Company commenced offering shares of Class C common stock pursuant to the 2021 DRP Offering upon termination of the Follow-on Offering. Effective January 27, 2021, the board of directors terminated the Company’s Follow-on Offering. In connection with the termination of the Follow-on Offering, the Company stopped accepting investor subscriptions on January 22, 2021. As of January 27, 2021, the Company had $600,547,672 in share value of unsold shares in the Follow-on Offering, which were deregistered with the SEC. On February 1, 2021, the Company commenced a private offering of Class C common stock under Regulation D promulgated under the Securities Act (the “Private Offering”) and accepted investor subscriptions from only accredited investors until the Company terminated the Private Offering on August 12, 2021. On February 1, 2021, with the authorization of the board of directors, the Company amended and restated its Class C common stock share repurchase program (the “Class C SRP”) in order to (i) revise the minimum holding period before a stockholder may participate in the Class C SRP from three months to six months, (ii) revise the limitations on the share repurchase price so that shares held for less than two years will be repurchased at 98% of the most recently published NAV per share and shares held for at least two years will be repurchased at 100% of the most recently published NAV per share (as opposed to a repurchase price of 97% of the most recently published NAV per share for shares held less than one year, 98% of the most recently published NAV per share for shares held for more than one year but less than two years, 99% of the most recently published NAV per share for shares held for more than two years but less than three years, and 100% of the most recently published NAV per share for shares held for at least three years), (iii) increase the minimum share value (based on the most recently published NAV per share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum share value, from $500 to $1,000, and (iv) include language that provides that the Class C SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. On July 28, 2021, the board of directors approved a further amendment and restatement of the Class C SRP to eliminate the holding period for shares of Class C common stock purchased prior to February 1, 2021, which is no longer applicable. With the authorization of the board of directors, the Company also amended and restated its Class S common stock share repurchase program (“Class S SRP”) on February 1, 2021 in order to (i) allow the Company to waive the minimum one year holding period before a holder of shares of Class S common stock may participate in the Class S SRP in the event of extraordinary circumstances which would place undue hardship on a stockholder, (ii) increase the minimum Class S share value (based on the most recently published NAV per Class S share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum Class S share value, from $500 to $1,000, and (iii) include language that provides that the Class S SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. Since December 31, 2020, the Company’s board of directors has approved and established an updated estimated NAV per share of the Company’s Class C common stock and Class S common stock as follows: Valuation Date Effective Date NAV Per Share December 31, 2020 January 27, 2021 $ 23.03 March 31, 2021 May 5, 2021 $ 24.61 June 30, 2021 August 4, 2021 $ 26.05 Additional information on the determination of the Company's most recent estimated NAV per share, including the process used to determine its estimated NAV per share, can be found in the Company's Current Report on Form 8-K filed with the SEC on August 4, 2021. Effective August 4, 2021, the purchase price per share of the Company’s Class C common stock in the Private Offering was increased from $ 24.61 26.05 26.05 26.05 24.61 26.05 The Company filed with the SEC a Regulation A Offering Statement on Form 1-A, including its preliminary offering circular, for a $75,000,000 offering of its Class C common stock on June 29, 2021 and plans to file an amended Form 1-A promptly after filing its Quarterly Report on Form 10-Q for the period ended June 30, 2021. Once the SEC qualifies the Regulation A Offering Statement on Form 1-A that was initially filed with the SEC on June 29, 2021, the Regulation A offering will allow the Company to once again accept investor subscriptions from investors who are not accredited and provide access to commercial real estate investments to a much larger audience. Special Purpose Acquisition Company To further the Company’s mission of being the leading provider of alternative real estate-related products, and to capitalize on opportunities in the public marketplace, the Company is sponsoring Modiv Acquisition Corp. (“MACS”), a special purpose acquisition company (“SPAC”). MACS was formed for the purpose of entering into a business combination with one or more businesses or entities focusing on fintech and proptech targets located in North America whose core purpose is related to the real estate industry. MACS publicly filed its registration statement on Form S-1 with the SEC on March 24, 2021 for a proposed initial public offering (“IPO”) that would raise $100,000,000, or $115,000,000 if the over-allotment option is exercised. In connection with the public filing of the Form S-1, the Company deposited $4,500,000 of risk capital to be invested in MACS in escrow with the attorneys for MACS in March 2021. However, there has been significant disruption in the IPO market for SPACs during the second quarter of 2021 and there can be no assurance that MACS can complete an IPO. The Company is continuing to evaluate how to respond to the changes in the market and may decide to either modify MACS’s IPO or not proceed with the IPO. Since the timing of an IPO, if any, by MACS is uncertain, the $4,500,000 deposit was released from escrow and returned to the Company in June 2021. | NOTE 1. BUSINESS AND ORGANIZATION Modiv Inc. (the “Company” or “Modiv”) was incorporated on May 14, 2015 as a Maryland corporation. The Company was originally incorporated under the name Rich Uncles Real Estate Investment Trust, Inc., and changed its name on October 19, 2015 to Rich Uncles NNN REIT, Inc., again on August 14, 2017 to RW Holdings NNN REIT, Inc. and to Modiv Inc. on January 22, 2021. The Company has the authority to issue 450,000,000 shares of stock, consisting of 50,000,000 shares of preferred stock, $0.001 par value per share, 300,000,000 shares of Class C common stock, $0.001 par value per share, and 100,000,000 shares of Class S common stock, $0.001 par value per share. Effective February 1, 2021, with the authorization of the board of directors, the Company filed Articles of Amendment to the Company’s charter in the State of Maryland in order to effect a 1: 3 The Company was initially formed to primarily invest in single-tenant income-producing properties located in the United States, leased to creditworthy tenants under long-term net leases. Since December 31, 2019, the Company has been internally managed following its December 31, 2019 acquisition of the business of BrixInvest, LLC, a Delaware limited liability company and the Company’s former sponsor (“BrixInvest” or the “Former Sponsor”), and the Company’s merger with Rich Uncles Real Estate Investment Trust I (“REIT I”). During 2020, the Company acquired the intellectual property of buildingbits.com (“BuildingBITs”), an innovative online real estate crowd funding platform, and the REITless investment platform (“REITless”), an online investment platform for commercial real estate investment offerings. In 2021, the Company will continue to seek opportunities to be an aggregator within the non-listed real estate product industry, utilizing the combination of its deep understanding of both the crowd funding and real estate markets and the strength of its stockholder-owned, self-managed business model. The Company plans to invest in a diversified portfolio of real estate and real estate-related investments. The Company holds its investments in real property through special purpose limited liability companies which are wholly-owned subsidiaries of Modiv Operating Partnership, LP, formerly known as RW Holdings NNN REIT Operating Partnership, LP, a Delaware limited partnership (the “Operating Partnership”), or Katana Merger Sub, LP, a Delaware limited partnership (“Merger Sub”), which is described below and was merged into the Operating Partnership on December 31, 2020. The Operating Partnership was formed on January 28, 2016. The Company is the sole general partner of and owned a 99% partnership interest in the Operating Partnership prior to the completion of the Self-Management Transaction (defined below) on December 31, 2019. The Company's wholly-owned subsidiary, Rich Uncles NNN LP, LLC, a Delaware limited liability company formed on May 13, 2016 (“NNN LP”), owned the remaining 1% partnership interest in the Operating Partnership and was the sole limited partner of the Operating Partnership prior to the completion of the Self-Management Transaction on December 31, 2019. Following the completion of the Self-Management Transaction, the Company, including NNN LP, owned an approximately 87% partnership interest in the Operating Partnership. Daisho OP Holdings, LLC (“Daisho”), a formerly wholly-owned subsidiary of BrixInvest which was spun off from BrixInvest on December 31, 2019, was issued and held 657,949.5 units of Class M limited partnership interest (the “Class M OP Units”), or an approximately 12% limited partnership interest, in the Operating Partnership as of December 31, 2019. The Class M OP Units were distributed to the members of Daisho during 2020. In connection with the Self-Management Transaction, the Company's Chief Executive Officer and Chief Financial Officer were issued an aggregate of 56,029 units of Class P limited partnership interest (the “Class P OP Units”) in the Operating Partnership and thereby owned the remaining approximate 1% limited partnership interest in the Operating Partnership as of December 31, 2019. Following the issuance of 360,000 units (adjusted for the 1: 3 Note 11 The Company was externally managed by its former advisor, Rich Uncles NNN REIT Operator, LLC (the “Former Advisor”), a Delaware limited liability company, pursuant to the Second Amended and Restated Advisory Agreement dated August 11, 2017, as amended (the “Advisory Agreement”), through December 31, 2019. The Former Advisor was wholly-owned by BrixInvest, whose members include Aaron S. Halfacre and Raymond Wirta, the Company’s Chief Executive Officer and Chairman of the Board, respectively. On each of June 24, 2015 and December 31, 2015, the Company issued 3,333.3 shares (adjusted for the 1: 3 3 30.00 3 3 On December 31, 2019, pursuant to an Agreement and Plan of Merger dated September 19, 2019 (the “Merger Agreement”), REIT I merged with and into Merger Sub, a wholly-owned subsidiary of the Company, with Merger Sub surviving as a direct, wholly-owned subsidiary of the Company (the “Merger”). At such time, the separate existence of REIT I ceased. As a result, the Company issued 2,680,740.5 shares (adjusted for the 1: 3 Note 3 On July 15, 2015, the Company filed a registration statement on Form S-11 (File No. 333-205684) with the Securities and Exchange Commission (the “SEC”) to register an initial public offering of a maximum of 30,000,000 (adjusted for the 1: 3 3 On August 11, 2017, the Company began offering up to 33,333,333 shares (adjusted for the 1: 3 On December 23, 2019, the Company commenced a follow-on offering pursuant to a new registration statement on Form S-11 (File No. 333-231724) (the “Follow-on Offering” and, together with the Initial Registered Offering and the 2021 DRP Offering (as defined below), the “Registered Offerings”), which registered the offer and sale of up to $800,000,000 in share value of Class C common stock, including $725,000,000 in share value of Class C common stock pursuant to the primary portion of the Follow-on Offering and $75,000,000 in share value of Class C common stock pursuant to the Company's DRP. The Company ceased offering shares pursuant to the Initial Registered Offering concurrently with the commencement of the Follow-on Offering. In response to the significant economic impacts of the novel coronavirus (“COVID-19”) pandemic, effective as of the close of business on May 7, 2020, the Company’s board of directors temporarily suspended the primary portion of the Company’s Follow-on Offering and Class S Offering until such time as the board of directors approved and established an updated estimated net asset value (“NAV”) per share of the Company’s common stock and determined to resume such primary offerings. On May 20, 2020, the Company’s board of directors approved and established an updated estimated NAV per share of the Company’s common stock of $ 21.01 3 Commencing on June 1, 2020, the Company’s board of directors resumed the primary portions of the Follow-on Offering and the Class S Offering. The purchase price per share in the primary portion of the Follow-on Offering was decreased from $30.81 (unaudited and adjusted for the 1: 3 21.01 3 21.01 3 21.01 3 On January 22, 2021, with the authorization of the board of directors, Modiv amended and restated its DRP with respect to the Company's shares of Class C common stock in order to reflect its corporate name change and to remove the ability of the Company’s stockholders to elect to reinvest only a portion of their cash distributions in shares through the DRP so that investors who elect to participate in the amended and restated DRP must reinvest all cash distributions in shares. In addition, the amended and restated DRP provides for determinations by the board of directors of the NAV per share more frequently than annually. The amended and restated DRP was effective with respect to distributions that were paid in February 2021. On January 22, 2021, the Company filed a registration statement on Form S-3 (File No. 333-252321) to register a maximum of $100,000,000 of additional shares of Class C common stock to be issued pursuant to the amended and restated DRP (the “2021 DRP Offering” and, collectively with the Initial DRP Offering, the “Registered DRP Offering”). The Company commenced offering shares of Class C common stock pursuant to the 2021 DRP Offering upon termination of the Follow-on Offering, as discussed below. Effective January 27, 2021, the board of directors terminated the Company’s Follow-on Offering. In connection with the termination of the Follow-on Offering, the Company stopped accepting investor subscriptions on January 22, 2021. On February 1, 2021, the Company commenced a private offering under Regulation D of the Securities Act of 1933 and is accepting investor subscriptions from accredited investors. On January 27, 2021, the Company’s board of directors approved and established an updated estimated NAV per share of the Company’s Class C common stock and Class S common stock of $ 23.03 3 Effective January 31, 2021, the Company and North Capital Private Securities Corporation (“NCPS”) terminated their Dealer Manager Agreement, dated January 2, 2020, pursuant to which NCPS had agreed to act as dealer manager in connection with the Follow-on Offering. Effective January 31, 2021, with the authorization of the board of directors, NCPS and the Company entered into a new Dealer Manager Agreement pursuant to which NCPS has agreed to act as dealer manager in connection with investments in the Company by accredited investors. On February 1, 2021, with the authorization of the board of directors, the Company amended and restated its Class C common stock share repurchase program (the “Class C SRP”) in order to (i) revise the minimum holding period before a stockholder may participate in the Class C SRP from 90 days to six months, (ii) revise the limitations on the share repurchase price so that shares held for less than two years will be repurchased at 98% of the most recently published NAV per share and shares held for at least two years will be repurchased at 100% of the most recently published NAV per share (as opposed to a repurchase price of 97% of the most recently published NAV per share for shares held less than one year, 98% of the most recently published NAV per share for shares held for more than one year but less than two years, 99% of the most recently published NAV per share for shares held for more than two years but less than three years, and 100% of the most recently published NAV per share for shares held for at least three years), (iii) increase the minimum share value (based on the most recently published NAV per share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum share value, from $500 to $1,000, and (iv) include language that provides that the Class C SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. The minimum holding period before a stockholder may participate in the Class C SRP for shares purchased prior to February 1, 2021 will remain at 90 days. With the authorization of the board of directors, the Company also amended and restated its Class S common stock share repurchase program (the “Class S SRP”) on February 1, 2021 in order to (i) allow the Company to waive the minimum one year holding period before a holder of Class S shares may participate in the Class S SRP in the event of extraordinary circumstances which would place undue hardship on a stockholder, (ii) increase the minimum Class S share value (based on the most recently published NAV per Class S share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum Class S share value, from $500 to $1,000, and (iii) include language that provides that the Class S SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. Through December 31, 2020, the Company had sold 6,627,934 shares (adjusted for the 1: 3 3 3 3 As of December 31, 2020, the Company had investments in (i) 36 operating properties, excluding four properties held for sale, comprised of: 11 retail properties, 14 office properties and 11 industrial properties (including 14 operating properties of the original 20 operating properties which were acquired through the Merger on December 31, 2019, and comprised of: (a) five retail properties, (b) four office properties and (c) five industrial properties, exclusive of three retail properties classified as held for sale); (ii) one parcel of land, which currently serves as an easement to one of the Company’s office properties; and (iii) an approximate 72.7% tenant-in-common interest in a Santa Clara office property (the “TIC Interest”). During the year ended December 31, 2020, the Company determined to sell nine eight one Notes 4 11 |
SUMMARY OF SIGNIFICANT ACOUNTIN
SUMMARY OF SIGNIFICANT ACOUNTING POLICIES (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and the rules and regulations of the SEC. Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. Such unaudited condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, which is responsible for their integrity and objectivity. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2021. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which are normal and recurring, necessary to fairly state the Company's financial position, results of operations and cash flows. All significant intercompany balances and transactions are eliminated in consolidation. The unaudited condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the audited financial statements. Reverse Stock Split On February 1, 2021, the Company effected a 1: 3 Use of Estimates The preparation of the unaudited condensed consolidated financial statements and the accompanying notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. These estimates are based on historical experience and, in some cases, assumptions based on current and future market experience, including considerations related to the COVID-19 pandemic (see Notes 3 and 5 for the prior year's impairment charges related primarily to COVID-19). Actual results may differ from those estimates. Noncontrolling Interests in the Operating Partnership The Company accounts for the noncontrolling interests in its Operating Partnership in accordance with the related accounting guidance. Due to the Company's control of the Operating Partnership through its general partnership interest therein and the limited rights of the limited partners, the Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company, and the limited partner interests not held by the Company are reflected as noncontrolling interests in the accompanying unaudited condensed consolidated balance sheets and statements of equity. The noncontrolling interests were issued on December 31, 2019 and represent non-voting, non-dividend accruing interests with no allocation of profits or losses. As described in Note 11, the interests were not able to be converted or exchanged prior to (i) December 31, 2020, the one-year anniversary of the closing of the Self-Management Transaction (in the case of the units of Class M limited partnership interest (“Class M OP Units”) in the Operating Partnership), or (ii) the expiration of the Lockup Period (as defined in Note 11) (in the case of the units of Class P limited partnership interest (“Class P OP Units”) in the Operating Partnership). As of June 30, 2021, no interests have been converted or exchanged. Business Combinations The Company accounts for business combinations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”) and applicable Accounting Standards Updates (each, an “ASU”), whereby the total consideration transferred is allocated to the assets acquired and liabilities assumed, including amounts attributable to any non-controlling interests, when applicable, based on their respective estimated fair values as of the date of acquisition. Goodwill represents the excess of consideration transferred over the estimated fair value of the net assets acquired in a business combination. ASC 805 defines a business as an integrated set of activities and assets (collectively, a “set”) that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. To be considered a business, the set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. ASC 805 provides a practical screen to determine when a set would not be considered a business. If the screen is not met and further assessment determines that the set is not a business, then the set is an asset acquisition. The primary difference between a business combination and an asset acquisition is that an asset acquisition requires cost accumulation and allocation at relative fair value. Acquisition costs are capitalized for an asset acquisition and expensed for a business combination. Revenue Recognition The Company adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”), effective January 1, 2018. The Company’s revenue impacted by ASU No. 2014-09 included revenue generated by sales of real estate, other operating income and tenant reimbursements for substantial services earned at the Company’s properties. Such revenues are recognized when the services are provided and the performance obligations are satisfied. Tenant reimbursements, consisting of amounts due from tenants for common area maintenance, property taxes and other recoverable costs, are recognized in rental income subsequent to the adoption of Topic 842, as discussed below, in the period the recoverable costs are incurred. Tenant reimbursements, for which the Company pays the associated costs directly to third-party vendors and is reimbursed by the tenants, are recognized and recorded on a gross basis. The Company adopted FASB ASU No. 2016-02, Leases (Topic 842), and the related FASB ASU Nos. 2018-10, 2018-11, 2018-20 and 2019-01 effective January 1, 2019, which provide practical expedients, technical corrections and improvements for certain aspects of ASU 2016-02, on a modified retrospective basis (collectively, “Topic 842”). Topic 842 establishes a single comprehensive model for entities to use in accounting for leases. Topic 842 applies to all entities that enter into leases. Lessees are required to report assets and liabilities that arise from leases. Lessor accounting has largely remained unchanged; however, certain refinements were made to conform with revenue recognition guidance, specifically related to the allocation and recognition of contract consideration earned from lease and non-lease revenue components. Topic 842 impacts the Company's accounting for leases primarily as a lessor. However, Topic 842 also impacts the Company's accounting as a lessee but is considered not material. As a lessor, the Company's leases with tenants generally provide for the lease of real estate properties, as well as common area maintenance, property taxes and other recoverable costs. To reflect recognition as one lease component, rental income and tenant reimbursements and other lease related property income that meet the requirements of the practical expedient provided by ASU No. 2018-11 have been combined under rental income in the Company's unaudited condensed consolidated statements of operations. For the three months ended June 30, 2021 and 2020, tenant reimbursements included in rental income amounted to $1,703,974 and $1,538,586, respectively, and for the six months ended June 30, 2021 and 2020, tenant reimbursements included in rental income amounted to $3,395,361 and $3,899,505, respectively. The Company recognizes rental income from tenants under operating leases on a straight-line basis over the noncancelable term of the lease when collectability of such amounts is reasonably assured. Recognition of rental income on a straight-line basis includes the effects of rental abatements, lease incentives and fixed and determinable increases in lease payments over the lease term. If the lease provides for tenant improvements, management of the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) 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. Tenant reimbursements of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period the expenses are incurred and presented gross if the Company is the primary obligor and, with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. In instances where the operating lease agreement has an early termination option, the termination penalty is based on a predetermined termination fee or based on the unamortized tenant improvements and leasing commissions. The Company evaluates the collectability of rents and other receivables on a regular basis based on factors including, among others, payment history, credit rating, the asset type, and current economic conditions. If the Company’s evaluation of these factors indicates it may not recover the full value of the receivable, it provides an allowance against the portion of the receivable that it estimates may not be recovered. This analysis requires the Company to determine whether there are factors indicating a receivable may not be fully collectible and to estimate the amount of the receivable that may not be collected. Gain or Loss on Sale of Real Estate Property The Company recognizes gain or loss on sale of real estate property when the Company has executed a contract for sale of the property, transferred controlling financial interest in the property to the buyer and determined that it is probable that the Company will collect substantially all of the consideration for the property. The Company's real estate property sale transactions for the six months ended June 30, 2021 met these criteria at closing. There were no sales transactions for the three months ended June 30, 2021. When properties are sold, operating results of the properties remain in continuing operations, and any associated gain or loss from the disposition is included in gain or loss on sale of real estate investments in the Company’s accompanying unaudited condensed consolidated statements of operations. Bad Debts and Allowances for Tenant and Deferred Rent Receivables The Company's determination of the adequacy of its allowances for tenant receivables includes a binary assessment of whether or not the amounts due under a tenant’s lease agreement are probable of collection. For such amounts that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the lease term. For such amounts that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. In addition, for tenant and deferred rent receivables deemed probable of collection, the Company also may record an allowance under other authoritative GAAP depending upon the Company's evaluation of the individual receivables, specific credit enhancements, current economic conditions, and other relevant factors. Such allowances are recorded as increases or decreases through rental income in the Company's unaudited condensed consolidated statements of operations. With respect to tenants in bankruptcy, management makes 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 allowance for the tenant’s receivable balance and generally will not recognize subsequent rental income until cash is received or until the tenant is no longer in bankruptcy and has the ability to make rental payments. Leasing Costs Internal leasing costs and third-party legal fees and leasing commissions are charged to expense as incurred. These expenses are included in legal leasing costs under property expenses in the Company's unaudited condensed consolidated statements of operations. Impairment of Investment in Real Estate Properties The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of real estate assets may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of real estate assets may not be recoverable, management assesses whether the carrying value of the assets will be recovered through the future undiscounted operating cash flows expected from the use of and eventual disposition of the property. If, based on the analysis, the Company does not believe that it will be able to recover the carrying value of the asset, the Company records an impairment charge to the extent the carrying value exceeds the estimated fair value of the asset. As more fully discussed in Note 3, the Company recorded impairment charges of $349,457 and $9,506,525 related to one and four of its real estate properties, respectively, during the three and six months ended June 30, 2020, respectively. The Company did not incur any impairment charges for its real estate properties during the three and six months ended June 30, 2021. However, the Company recognized a reversal of a previously recognized impairment charge of $ 400,999 Other Comprehensive Loss For all periods presented, other comprehensive loss is the same as net loss. Per Share Data The Company reports a dual presentation of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted EPS uses the treasury stock method or the if-converted method, where applicable, to compute for the potential dilution that would occur if dilutive securities or commitments to issue common stock were exercised. Diluted EPS is the same as Basic EPS for the three and six months ended June 30, 2021 and 2020 as the Company had a net loss for all reported periods. As of June 30, 2021, there were 657,949.5 Class M OP Units, 56,029 Class P OP Units and 358,670 units of Class R limited partnership interest (“Class R OP Units”), net of forfeiture of 1,330 units (adjusted for the 1: 3 1.6667 1 1 The Company has presented the basic and diluted net loss per share amounts on the accompanying unaudited condensed consolidated statements of operations for Class C and Class S share classes as a combined common share class. Application of the two-class method for allocating net loss in accordance with the provisions of ASC 260, Earnings per Share, would have resulted in a net loss of $(0.13) and $(0.28) per share of Class C common stock for the three months ended June 30, 2021 and 2020, respectively, and a net loss of $(0.13) and $(0.28) per share of Class S common stock for the three months ended June 30, 2021 and 2020, respectively. The two-class method would have resulted in a net loss per share of $(0.25) and $(6.39) of Class C common stock for the six months ended June 30, 2021 and 2020, respectively, and $(0.25) and $(6.39) of Class S common stock for the six months ended June 30, 2021 and 2020, respectively. Any difference in net loss per share if allocated under this method primarily reflects the lower effective distributions per share for Class S stockholders as a result of the payment of the deferred commission to the Class S distributor of these shares, and also reflects the impact of the timing of the declaration of the distributions relative to the time the shares were outstanding. Fair Value Disclosures Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an existing price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value for certain financial instruments is derived using valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value: Cash and cash equivalents, restricted cash, deposit for investment in special purpose acquisition company, receivable from sale of real estate property, tenant receivables, prepaid expenses and other assets and accounts payable, accrued and other liabilities: These balances approximate their fair values due to the short maturities of these items. Derivative Instruments: The Company’s derivative instruments are presented at fair value in the accompanying unaudited condensed consolidated balance sheets. The valuation of these instruments is determined using a proprietary model that utilizes observable inputs. As such, the Company classifies these inputs as Level 2 inputs. The proprietary model uses the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and volatility. The fair values of interest rate swaps are estimated using the market standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit risks to the contracts, are incorporated in the fair values to account for potential nonperformance risk. Goodwill and Intangible Assets: The fair value measurements of goodwill and intangible assets are considered Level 3 nonrecurring fair value measurements. For goodwill, fair value measurement involves the determination of fair value of a reporting unit. The Company uses a Monte Carlo simulation model to estimate future performance, generating the fair value of the reporting unit's business. For intangible assets, fair value measurements include assumptions with inherent uncertainty, including projected offerings volumes and related projected revenues and long-term growth rates, among others. The carrying value of intangible assets is at risk of impairment if future projected offerings proceeds, revenues or long-term growth rates are lower than those currently projected. Credit facilities and economic relief note payable: The fair values of the Company’s credit facilities and economic relief note payable approximate the carrying values of the credit facility and economic relief note payable as their interest rates and other terms are comparable to those available in the market place for a similar credit facility and short-term note, respectively. Mortgage notes payable: The fair value of the Company’s mortgage notes payable is estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. 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 or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs. Restricted Cash Restricted cash is comprised of funds which are restricted for use as required by certain lenders in conjunction with an acquisition or debt financing or modification and for on-site and tenant improvements or property taxes. Restricted cash as of June 30, 2021 and December 31, 2020 amounted to $2,508,471 and $129,118, respectively, for the properties discussed below and other lender reserves. Under the terms of the Company’s June 2021 refinancing of mortgages on its properties leased to Northrop Grumman and L3Harris with Banc of California as described in Note 7, the Company established restricted cash accounts at Banc of California with $1,400,000 and $1,000,000 held for the Northrop Grumman and L3Harris properties, respectively, to fund building improvements, tenant improvements and leasing commissions. Pursuant to lease agreements, the Company had an obligation to pay for tenant improvements as of June 30, 2021 and December 31, 2020 of $189,136 and $60,598, respectively for tenant improvements to be incurred by tenants for which funds restricted by the lender were available. As of June 30, 2021 and December 31, 2020, the Company's restricted cash held to fund other improvements and leasing commissions totaled $2,210,864 and $32,086, respectively. Real Estate Investments Held for Sale The Company generally considers a real estate investment to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate investment held for sale, net” and “assets related to real estate investment held for sale,” respectively, in the accompanying unaudited condensed consolidated balance sheets. Mortgage notes payable and other liabilities related to real estate investments held for sale are classified as “mortgage notes payable related to real estate investments held for sale, net” and “liabilities related to real estate investments held for sale,” respectively, in the accompanying unaudited condensed consolidated balance sheets. Real estate investments classified as held for sale are no longer depreciated and are reported at the lower of their carrying value or their estimated fair value less estimated costs to sell. Operating results of properties that were classified as held for sale in the ordinary course of business are included in continuing operations in the Company’s accompanying unaudited condensed consolidated statements of operations. Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. The Company evaluates goodwill and other intangible assets for possible impairment in accordance with ASC 350, Intangibles–Goodwill and Other, on an annual basis, or more frequently when events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit has declined below its carrying value. If the carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized. In assessing goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macro-economic, industry-specific and company-specific factors. These factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of such reporting unit is less than its carrying amount, then a quantitative analysis is unnecessary. However, if the Company concludes otherwise, or if it elects to bypass the qualitative analysis, then it is required to perform a quantitative analysis that compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, a goodwill impairment loss is recognized for the lesser of: (a) the amount that the carrying amount of a reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to that reporting unit. Intangible assets consist of purchased customer-related intangible assets, marketing-related intangible assets, developed or acquired technology and other intangible assets. Intangible assets are amortized over their estimated useful lives using the straight-line method ranging from three years to five years. No significant residual value is estimated for intangible assets. An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. The Company evaluates long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. Restricted Stock and Restricted Stock Unit Awards The fair values of the Operating Partnership's units or restricted stock unit awards issued or granted by the Company are based on an estimated value per share of the Company’s common stock on the date of issuance or grant, adjusted for an illiquidity discount due to the illiquid nature of the underlying equity. Operating Partnership units issued as purchase consideration in connection with the Self-Management Transaction discussed in Note 11 are recorded in equity under noncontrolling interests in the Operating Partnership in the Company's unaudited condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020 and unaudited condensed consolidated statements of equity for the three and six months ended June 30, 2021 and 2020. For units granted to employees of the Company that are not included in the purchase consideration, the fair value of the award is amortized using the straight-line method over the requisite service period of the award, which is generally the vesting period. We have elected to record forfeitures as they occur. The Company determines the accounting classification of equity instruments (e.g. restricted stock units) that are issued as purchase consideration or part of the purchase consideration in a business combination, as either liability or equity, by first assessing whether the equity instruments meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity (“ASC 480-10”), and then in accordance with ASC 815-40, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock (“ASC 815-40”). Under ASC 480-10, equity instruments are classified as liabilities if the equity instruments are mandatorily redeemable, obligate the issuer to settle the equity instruments or the underlying shares by paying cash or other assets, or must or may require an unconditional obligation that must be settled by issuing a variable number of shares. If equity instruments do not meet liability classification under ASC 480-10, the Company assesses the requirements under ASC 815-40, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the equity instruments do not require liability classification under ASC 815-40, in order to conclude equity classification, the Company assesses whether the equity instruments are indexed to its common stock and whether the equity instruments are classified as equity under ASC 815-40 or other applicable GAAP guidance. After all relevant assessments are made, the Company concludes whether the equity instruments are classified as liability or equity. Liability classified equity instruments are required to be accounted for at fair value both on the date of issuance and on subsequent accounting period ending dates, with all changes in fair value after the issuance date recorded in the statements of operations as a gain or loss. Equity classified equity instruments are accounted for at fair value on the issuance date with no changes in fair value recognized after the issuance date. Reclassifications Certain prior year balance sheet accounts have been reclassified to conform with the current year presentation. The reclassification did not affect the balances in the prior year statement of operations. Recent Accounting Pronouncements New Accounting Standards Recently Issued and Not Yet Adopted In March 2020, the | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. The Company's financial statements, and the financial statements of the Operating Partnership, including its wholly-owned subsidiaries, are consolidated in the accompanying consolidated financial statements. The portion of the Operating Partnership which is not wholly-owned by the Company is presented as a noncontrolling interest. All significant intercompany balances and transactions are eliminated in consolidation. The accompanying consolidated financial statements and related notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in such consolidated financial statements and related notes. Actual results could differ materially from those estimates. Reverse Stock Split As discussed in Notes 1 and 11 3 Noncontrolling Interest in Consolidated Entities The Company accounts for the noncontrolling interest in its Operating Partnership in accordance with the related accounting guidance. Due to the Company's control of the Operating Partnership through its general partnership interest therein and the limited rights of the limited partners, the Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company, and the limited partner interests are reflected as a noncontrolling interest in the accompanying consolidated balance sheets. As described in Note 3 Business Combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations ASC 805 defines business as an integrated set of activities and assets (collectively, a “set”) that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. To be considered a business, the set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. ASC 805 provides a practical screen to determine when a set would not be considered a business. If the screen is not met and further assessment determines that the set is not a business, then the set is an asset acquisition. The primary difference between a business combination and an asset acquisition is that an asset acquisition requires cost accumulation and allocation at relative fair value whereas in a business combination the total consideration transferred is allocated among the fair value of the identifiable tangible and intangible assets and liabilities assumed. Acquisition costs are capitalized for an asset acquisition and expensed for a business combination (see Note 3 Revenue Recognition The Company adopted FASB Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606 The Company adopted FASB ASU No. 2016-02 “ Leases (Topic 842) As a lessor, the Company's leases with tenants generally provide for the lease of real estate properties, as well as common area maintenance, property taxes and other recoverable costs. Under Topic 842, the lease of space is considered a lease component while the common area maintenance, property taxes and other recoverable costs billings are considered nonlease components, which fall under revenue recognition guidance in ASU No. 2014-09. However, upon adopting the guidance in Topic 842, the Company determined that its tenant leases met the criteria to apply the practical expedient provided by ASU No. 2018-11 to recognize the lease and non-lease components together as one single component. This conclusion was based on the consideration that (1) the timing and pattern of transfer of the nonlease components and associated lease component are the same, and (2) the lease component, if accounted for separately, would be classified as an operating lease. As the lease of properties is the predominant component of the Company's leasing arrangements, the Company accounted for all lease and nonlease components as one-single component under Topic 842. To reflect recognition as one lease component, rental income and tenant reimbursements and other lease related property income that meet the requirements of the practical expedient provided by ASU No. 2018-11 have been combined under rental income subsequent to the adoption of Topic 842 for the year ended December 31, 2019 in the Company's consolidated statements of operations. For the years ended December 31, 2020 and 2019, tenant reimbursements included in rental income amounted to $7,028,808 and $4,857,794, respectively. The Company recognizes rental income from tenants under operating leases on a straight-line basis over the noncancelable term of the lease when collectability of such amounts is reasonably assured. Recognition of rental income on a straight-line basis includes the effects of rental abatements, lease incentives and fixed and determinable increases in lease payments over the lease term. If the lease provides for tenant improvements, management of the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) 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. Tenant reimbursements of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period the expenses are incurred and presented gross if the Company is the primary obligor and, with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. In instances where the operating lease agreement has an early termination option, the termination penalty is based on a predetermined termination fee or based on the unamortized tenant improvements and leasing commissions. The Company evaluates the collectability of rents and other receivables on a regular basis based on factors including, among others, payment history, credit rating, the asset type, and current economic conditions. If the Company’s evaluation of these factors indicates it may not recover the full value of the receivable, it provides an allowance against the portion of the receivable that it estimates may not be recovered. This analysis requires the Company to determine whether there are factors indicating a receivable may not be fully collectible and to estimate the amount of the receivable that may not be collected. Gain or Loss on Sale of Real Estate Property The Company recognizes gain or loss on sale of real estate property when the Company has executed a contract for sale of the property, transferred controlling financial interest in the property to the buyer and determined that it is probable that the Company will collect substantially all of the consideration for the property. The Company's real estate property sale transactions for the year ended December 31, 2020 met these criteria at closing. Operating results of the property that is sold remains in continuing operations, and any associated gain or loss from the disposition is included in gain or loss on sale of real estate investments in the Company’s accompanying consolidated statements of operations. Bad Debts and Allowances for Tenant and Deferred Rent Receivables The Company's determination of the adequacy of its allowances for tenant receivables includes a binary assessment of whether or not the amounts due under a tenant’s lease agreement are probable of collection. For such amounts that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the lease term. For such amounts that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. In addition, for tenant and deferred rent receivables deemed probable of collection, the Company also may record an allowance under other authoritative GAAP depending upon the Company's evaluation of the individual receivables, specific credit enhancements, current economic conditions, and other relevant factors. Such allowances are recorded as increases or decreases through rental income in the Company's consolidated statements of operations. With respect to tenants in bankruptcy, management makes 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 allowance 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. Advertising Costs The Company incurred advertising costs charged to general and administrative expenses for the year ended December 31, 2020 aggregating $607,787. In 2019, the advertising costs relating to the Offerings were paid by the Former Advisor through September 30, 2019. These amounts were reimbursed to the Former Advisor as organizational and offering costs to the extent they did not exceed the 3% limit as further discussed in Note 9 Income Taxes The Company elected to be taxed as a REIT for U.S. federal income tax purposes under Section 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), beginning with its taxable year ended December 31, 2016. The Company expects to operate in a manner that will allow it to continue to qualify as a REIT for U.S. federal income tax purposes. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including meeting various tests regarding the nature of the Company's assets and income, the ownership of the Company's outstanding stock and distribution of at least 90% of the Company’s annual REIT taxable income to its 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 U.S. federal income tax to the extent it distributes qualifying dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. 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 U.S. 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. The Company has concluded that there are no significant uncertain tax positions requiring recognition in its consolidated financial statements. Neither the Company nor its subsidiaries has been assessed material interest or penalties by any major tax jurisdictions. The Company’s evaluations were performed for the tax years ended December 31, 2020 and 2019. As of December 31, 2020, the returns for calendar years 2016, 2017, 2018 and 2019 remain subject to examination by major tax jurisdictions. Other Comprehensive Loss For the years ended December 31, 2020 and 2019, other comprehensive loss is the same as net loss. Per Share Data The Company reports a dual presentation of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted EPS uses the treasury stock method or the if-converted method, where applicable, to compute for the potential dilution that would occur if dilutive securities or commitments to issue common stock were exercised. Diluted EPS is the same as Basic EPS for the years ended December 31, 2020 and 2019 as the Company had a net loss for both years. As of both December 31, 2020 and 2019, there were 657,949.5 Class M OP Units and 56,029 Class P OP Units, respectively, that were convertible to Class C OP Units (defined below) at a conversion ratio of 1.6667 3 Note 3 1 The Company has presented the basic and diluted net loss per share amounts on the accompanying consolidated statements of operations for Class C and Class S share classes as a combined common share class. Application of the two-class method for allocating net loss in accordance with the provisions of ASC 260, Earnings per Share Distributions declared per share of Class C common stock were $ 1.46 2.11 3 1.46 2.11 3 Fair Value Measurements and Disclosures Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value for certain financial instruments is derived using a combination of market quotes, pricing models, and other valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value: Cash and cash equivalents; restricted cash; tenant receivables; prepaid expenses and other assets; accounts payable, accrued and other liabilities; and due to affiliates Derivative instruments Goodwill and Intangible Assets Unsecured credit facility Mortgage notes payable Related party transactions Note 9 Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Cash and cash equivalents are stated at cost, which approximates fair value. The Company’s cash and cash equivalents balance may exceed federally insurable limits. The Company mitigates this risk by depositing funds with major financial institutions; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. Restricted Cash Restricted cash is comprised of funds which are restricted for use as required by certain lenders in conjunction with an acquisition or debt financing and for on-site and tenant improvements or property taxes. Restricted cash as of December 31, 2020 and 2019 amounted to $129,118 and $113,362, respectively. Pursuant to lease agreements, the Company has obligations to pay for $60,598 and $98,329 in site and tenant improvements to be incurred by tenants as of December 31, 2020 and 2019, respectively, including a 72.7% share of the tenant improvements for the Santa Clara property. At December 31, 2020 and 2019, the Company’s restricted cash held to fund these improvements totaled $92,684 and $92,684, respectively. As of December 31, 2020 and 2019, the Company also held restricted cash of $36,434 and $20,678 to fund an impounded property tax. Real Estate Investments Real Estate Acquisition Valuation The Company records acquisitions that meet the definition of a business as a business combination. If the acquisition does not meet the definition of a business, the Company records the acquisition as an asset acquisition. Under both methods, all assets acquired and liabilities assumed are measured based on their acquisition-date fair values. There were no real estate acquisitions during 2020. All real estate acquisitions in 2019 were treated as asset acquisitions. Transaction costs that are related to a business combination are charged to expense as incurred. Transaction costs that are related to an asset acquisition are capitalized as incurred. The Company assesses the acquisition date fair values of all tangible assets, identifiable intangibles, and assumed liabilities using methods similar to those used by independent appraisers, generally utilizing a discounted cash flow analysis that applies appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining noncancelable term of above-market in-place leases plus any extended term for any leases with below-market renewal options. The Company amortizes any recorded above-market or below-market lease values as a reduction or increase, respectively, to rental income over the remaining noncancelable terms of the respective lease, including any below-market renewal periods. The Company estimates the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease-up periods, considering current market conditions. In estimating carrying costs, the Company generally includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease up periods. The Company amortizes the value of tenant origination and absorption costs to depreciation and amortization expense over the remaining term of the respective lease. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property-operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, and the number of years the property will be held for investment. Therefore, the Company classifies these inputs as Level 3 inputs. The use of inappropriate assumptions would result in an incorrect valuation of the Company’s acquired tangible assets, identifiable intangibles and assumed liabilities, which would impact the amount of the Company’s net income (loss). Depreciation and Amortization Real estate costs related to the acquisition and improvement of properties are capitalized and depreciated or amortized over the expected useful life of the asset on a straight-line basis. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset and are expensed as incurred. Significant replacements and betterments are capitalized. The Company anticipates the estimated useful lives of its assets by class to be generally as follows: ● Buildings 10 - 48 years ● Site improvements Shorter of 15 years or remaining lease term ● Tenant improvements Shorter of 15 years or remaining lease term ● Tenant origination and absorption costs, and above-/below-market lease intangibles Remaining lease term Impairment of Investment in Real Estate Properties The Company regularly monitors events and changes in circumstances that could indicate that the carrying amounts of real estate assets may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of real estate assets may not be recoverable, management assesses whether the carrying value of the assets will be recovered through the future undiscounted operating cash flows expected from the use of and eventual disposition of the property. If, based on the analysis, the Company does not believe that it will be able to recover the carrying value of the asset, the Company records an impairment charge to the extent the carrying value exceeds the estimated fair value of the asset. As more fully discussed in Note 4 Leasing Costs Upon adoption of Topic 842, the Company elected to apply the package of practical expedients provided and did not reassess the following as of January 1, 2019: (1) whether any expired or existing contracts are leases or contain leases; (2) the lease classification for any expired or existing leases; and (3) initial direct costs for any existing leases. Under Topic 842, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, beginning January 1, 2019, the Company no longer capitalizes internal leasing costs and third-party legal leasing costs and instead charges these costs to expense as incurred. These expenses are included in legal leasing costs under property expenses in the Company's consolidated statements of operations. The election of the package of practical expedients described above permits the Company to continue to account for its leases that commenced before January 1, 2019 under the previously existing lease accounting guidance for the remainder of their lease terms, and to apply the new lease accounting guidance to leases entered into or acquired commencing or modified after January 1, 2019. Real Estate Investments Held for Sale The Company considers a real estate investment to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate investment held for sale, net” and “assets related to real estate investment held for sale,” respectively, in the accompanying consolidated balance sheets. Mortgage notes payable and other liabilities related to real estate investments held for sale are classified as “mortgage notes payable related to real estate investments held for sale, net” and “liabilities related to real estate investments held for sale,” respectively, in the accompanying consolidated balance sheets. Real estate investments classified as held for sale are no longer depreciated and are reported at the lower of their carrying value or their estimated fair value less estimated costs to sell. Operating results of properties that were classified as held for sale in the ordinary course of business are included in continuing operations in the Company’s accompanying consolidated statements of operations. Unconsolidated Investments The Company accounts for investments in entities over which the Company has the ability to exercise significant influence under the equity method of accounting. Under the equity method of accounting, an investment is initially recognized at cost and is subsequently adjusted to reflect the Company’s share of earnings or losses of the investee. The investment is also increased for additional amounts invested and decreased for any distributions received from the investee. Equity method investments are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the investment might not be recoverable. If an equity method investment is determined to be other-than-temporarily impaired, the investment is reduced to fair value and an impairment charge is recorded as a reduction to earnings. Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. The Company evaluates goodwill and other intangible assets for possible impairment in accordance with ASC 350, Intangibles–Goodwill and Other In assessing goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macro-economic, industry-specific and company-specific factors. These factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of such reporting unit is less than its carrying amount, then a quantitative analysis is unnecessary. However, if the Company concludes otherwise, or if it elects to bypass the qualitative analysis, then it is required to perform a quantitative analysis that compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, a goodwill impairment loss is recognized for the lesser of: (a) the amount that the carrying amount of a reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to that reporting unit. Intangible assets consist of purchased customer-related intangible assets, marketing related intangible assets, developed or acquired technology and other intangible assets. Intangible assets are amortized over their estimated useful lives using the straight-line method ranging from three years to five years. No significant residual value is estimated for intangible assets. An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. The Company evaluates long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. As further discussed in Note 3 The Company conducted its annual impairment analysis as of December 31, 2020 using the qualitative factors discussed above and determined that no additional impairments to goodwill or intangible assets were necessary. Deferred Financing Costs Deferred financing costs represent commitment fees, financing coordination fees paid to the Former Advisor, mortgage loan and line of credit fees, legal fees, and other third-party costs associated with obtaining financing and are presented on the Company's balance sheet as a direct deduction from the carrying value of the associated debt liabilities. These costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. Unamortized deferred financing costs related to revolving credit facilities are presented as an asset in periods where there are no outstanding borrowings under the facility. Derivative Instruments The Company enters into derivative instruments for risk management purposes to hedge its exposure to cash flow variability caused by changing interest rates on its variable rate mortgage notes payable. The Company does not enter into derivatives for speculative purposes. The Company records these derivative instruments at fair value on the accompanying consolidated balance sheet. The Company’s mortgage derivative instruments do not meet the hedge accounting criteria and therefore the changes in the fair value are recorded as gains or losses on derivative instruments in the accompanying statement of operations. The gain or loss is included in interest expense. The Company enters into interest rate swaps as a fixed rate payer to mitigate its exposure to rising interest rates on its variable rate notes payable. The value of interest rate swaps is primarily impacted by interest rates, market expectations about interest rates, and the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of the fixed rate payer position and decrease the value of the variable rate payer position. As the remaining life of the interest rate swap decreases, the value of both positions will generally move towards zero. Related Party Transactions The Company recorded all related party fee expense as incurred, subject to certain limitations described in the Company’s Advisory Agreement (s |
MERGER AND SELF-MANAGEMENT TRAN
MERGER AND SELF-MANAGEMENT TRANSACTION (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Business Combinations [Abstract] | ||
MERGER AND SELF-MANAGEMENT TRANSACTION | NOTE 11. OPERATING PARTNERSHIP UNITS Class M OP Units On September 19, 2019, the Company, the Operating Partnership, BrixInvest and Daisho OP Holdings, LLC, a formerly wholly owned subsidiary of BrixInvest (“Daisho”) which was spun off from BrixInvest on December 31, 2019, entered into the Contribution Agreement pursuant to which the Company agreed to acquire substantially all of the net assets of BrixInvest in exchange for 657,949.5 Class M OP Units in the Operating Partnership and assumed certain liabilities. The consideration transferred as of December 31, 2019 was determined to have a fair value of $50,603,000 based on a probability weighted analysis of achieving the requisite assets under management (“AUM”) and adjusted funds from operations (“AFFO”) hurdles. The Class M OP Units were issued to Daisho on December 31, 2019 in connection with the Self-Management Transaction and are non-voting, non-dividend accruing, and were not able to be converted or exchanged prior to the one-year anniversary of the Self-Management Transaction. Investors holding units in BrixInvest received Daisho units in a ratio of 1 1.6667 In the event that the Class M OP Units are converted into Class C OP Units prior to December 31, 2023, such Class M OP Units shall be exchanged at the rate indicated below: Date of Exchange Early Conversion Rate From December 31, 2020 to December 30, 2021 50% of the Class M conversion ratio From December 31, 2021 to December 30, 2022 60% of the Class M conversion ratio From December 31, 2022 to December 30, 2023 70% of the Class M conversion ratio The Class M OP Units are eligible for an increase in the conversion ratio (conversion ratio enhancement) if the Company achieves both of the targets for AUM and AFFO in a given year as set forth below and as adjusted for the 1:3 reverse stock split: Hurdles AUM AFFO Class M Initial Conversion Ratio 1: 1.6667 Fiscal Year 2021 $ 0.860 $ 1.77 1: 1.9167 Fiscal Year 2022 $ 1.175 $ 1.95 1: 2.5000 Fiscal Year 2023 $ 1.551 $ 2.10 1: 3.0000 Based on the current conversion ratio of 1.6667 26.05 43.42 Class P OP Units The Company also issued a portion of the Class P OP Units described below in connection with the Self-Management Transaction. The Class P OP Units are intended to be treated as “profits interests” in the Operating Partnership, which are non-voting, non-dividend accruing, and are not able to be transferred or exchanged prior to the earlier of (1) March 31, 2024, (2) a change of control (as defined in the Third Amended and Restated Agreement of Limited Partnership of the Operating Partnership (the “Amended OP Agreement”)), or (3) the date of the recipient's involuntary termination (as defined in the relevant award agreement for the Class P OP Units) (collectively, the “Lockup Period”). Following the expiration of the Lockup Period, the Class P OP Units are convertible into Class C OP Units at a conversion ratio of 1.6667 The Company issued a total of 56,029 Class P OP Units to Messrs. Halfacre and Raymond J. Pacini, the Company’s Chief Financial Officer, including 26,318 Class P OP Units issued in exchange for Messrs. Halfacre's and Pacini's agreements to forfeit a similar number of restricted units in BrixInvest in connection with the Self-Management Transaction. The remaining 29,711 Class P OP Units were issued to these executives as a portion of their incentive compensation for 2020 in connection with their entry into restrictive covenant agreements. The 29,711 Class P OP Units were valued based on the estimated NAV per share of $30.48 (unaudited and adjusted for the 1:3 reverse stock split) when issued on December 31, 2019 and the expected minimum conversion ratio of 1.6667 Under the Amended OP Agreement, once the Class M OP Units or Class P OP Units are converted into Class C OP Units, they will be exchangeable for the Company’s shares of Class C common stock on a 1 Class R OP Units On January 25, 2021, the compensation committee of the Company's board of directors recommended, and the board of directors approved, the grant of 120,000 Class R OP Units to Mr. Halfacre in recognition of his voluntary reduction in his 2020 compensation plus 512,000 Class R OP Units to Mr. Halfacre as equity incentive compensation for the next three years, and the grant of 100,000 Class R OP Units to Mr. Pacini as equity incentive compensation for the next three years. An additional 348,000 Class R OP Units were granted to the rest of the employees of the Company. All Class R OP Units granted vest on January 25, 2024 and are then mandatorily convertible into Class C OP Units on March 31, 2024 at a conversion ratio of 1 2.5 As a result of the Company’s 1:3 reverse stock split on February 1, 2021, Mr. Halfacre’s, Mr. Pacini’s and the remaining employees’ Class R OP Units were adjusted to 210,667 Class R OP Units, 33,333 Class R OP Units and 116,000 Class R OP Units, respectively, for a total of 360,000 Class R OP Units outstanding after adjustment for the 1:3 reverse stock split on February 1, 2021. Stock compensation expense related to the 360,000 Class R OP Units is based on the estimated value per share, including a discount for the illiquid nature of the underlying equity, and will be recognized over the three-year vesting period. During the three months ended June 30, 2021, 1,330 Class R OP Units were forfeited due to the departure of an employee. During the three and six months ended June 30, 2021, the Company amortized and charged $568,304 and $1,014,165, respectively, to stock compensation expense for the Class R OP Units since the grant date, adjusted for the reversal of the previous amortization of the forfeited units. The unamortized value of these units was $6,006,979 as of June 30, 2021. | NOTE 3. MERGER AND SELF-MANAGEMENT TRANSACTION REIT I Merger Transaction On December 31, 2019, pursuant to the Merger Agreement, the Company completed the acquisition of REIT I. The Company's stockholders approved the Merger contemplated by the Merger Agreement at the Annual Meeting of Stockholders held on December 17, 2019 (the “Annual Meeting”). The shareholders of REIT I approved the Merger contemplated by the Merger Agreement at REIT I’s Special Meeting of Shareholders, also held on December 17, 2019. On December 31, 2019, REIT I merged with and into Merger Sub, which survived the Merger as the Company's direct, wholly-owned subsidiary. At such time, the separate existence of REIT I ceased. The acquisition primarily included 20 single-tenant commercial properties and related tenant receivables, mortgage notes payable and accounts payable, in exchange for Merger consideration for each of REIT I's common shares (the “REIT I Common Shares”) issued and outstanding immediately prior to the Merger, other than the REIT I Common Shares owned by the Company, which were automatically canceled and retired, and converted into the right to receive one share of the Company's Class C common stock, with any fractional REIT I Common Shares converted into a corresponding number of fractional shares of the Company’s Class C common stock. As a result, the Company issued 2,680,740.5 shares (adjusted for the 1: 3 Note 5 Accounting Treatment While the Merger transaction was treated legally as a merger of the two entities, for accounting purposes, the transaction was treated as an asset acquisition under GAAP because REIT I did not possess the capability to operate its properties to generate revenue since it had no workforce. It was dependent on its advisor and did not possess the processes to perform asset management, property purchase and sale transactions or the resulting revenue generation on a stand-alone basis. The real estate assets acquired are similar in nature to each other and represent substantially all of the fair value of the assets acquired. While there are some dissimilarities, including the nature of the use (retail, industrial and office), each of the properties was subject to a multi-year lease with a single creditworthy tenant and the properties had similar risk profiles, generally including a mortgage secured only by the property. In addition, 17 of the 20 properties (approximately 93% by value as of the transaction date) were located in California and therefore subject to California law. Further, all properties were managed without on-site offices. Also, as Merger Sub, not REIT I, was the surviving entity, there was no entity level debt and there was no contingent consideration paid, as would be typical in the purchase of an operating business. The assets and liabilities acquired in the Merger were recorded at their estimated fair value as determined as of December 31, 2019, including normal adjustments for the values of lease-in-place and above/below market leases and premium/discount on outstanding mortgage notes payable. The Company incurred approximately $3,044,000 of acquisition-related transaction costs during 2019. These acquisition-related transaction costs were capitalized to the acquired real estate assets. As the transaction closed on the final day of the year, the Merger did not have an impact on the Company's consolidated statement of operations for the year ended December 31, 2019. Purchase Price Allocation The Company accounted for the Merger in accordance with the accounting standards codification guidance for business combinations, whereby the total purchase price was allocated to the acquired net tangible and intangible assets based on their estimated fair values as of the closing date. As of December 31, 2019, the Company had substantially completed its process for measuring the fair values of the assets acquired and liabilities assumed based on information available as of the closing date. The following table summarizes the allocation of the purchase price to the fair values assigned to the REIT I assets acquired and liabilities assumed as of December 31, 2019, the Merger closing date. These fair values are based on internal Company and independent external third-party valuations: Fair Values Assigned December 31, 2019 Assets: Real estate property, including above/below lease intangibles $ 151,099,097 Cash and cash equivalents 1,612,331 Tenant receivable 310,169 Prepaid expenses and other assets 51,924 Liabilities: Mortgage notes payable, net (62,985,425 ) Accounts payable and other liabilities (2,243,156 ) Net 87,844,940 Less: Cancellation of investment in REIT I (Note 5) (3,091,489 ) Capitalized transaction-related costs (3,044,480 ) Net Assets Acquired $ 81,708,971 Self-Management Transaction On September 19, 2019, the Company, the Operating Partnership, BrixInvest and Daisho entered into the Contribution Agreement pursuant to which the Company agreed to acquire substantially all of the net assets of BrixInvest in exchange for 657,949.5 Class M OP Units in the Operating Partnership and assumed certain liabilities. On December 31, 2019, the Self-Management Transaction was completed. Prior to the closing of the Self-Management Transaction: (i) substantially all of BrixInvest’s assets and liabilities were contributed to Daisho’s wholly-owned subsidiary, modiv, LLC, a Delaware limited liability company (“modiv, LLC”); and (ii) BrixInvest spun off Daisho to the BrixInvest members (the “Spin Off”). Pursuant to the Self-Management Transaction, Daisho contributed to the Operating Partnership all of the membership interests in modiv, LLC in exchange for the Class M OP Units. As a result of the Self-Management Transaction, BrixInvest, through its subsidiary, Daisho, transferred all of its operating assets, including but not limited to: (i) all personal property used in or necessary for the conduct of BrixInvest’s business; (ii) intellectual property, goodwill, licenses and sublicenses granted and obtained with respect thereto and certain domain names; (iii) all continuing employees and (iv) certain other assets and liabilities, to modiv, LLC and distributed 100% of the ownership interests in Daisho to the members of BrixInvest in the Spin Off. BrixInvest had been engaged in the business of serving as the sponsor platform supporting the operations of the Company, REIT I and, prior to October 28, 2019, BRIX REIT, Inc. (“BRIX REIT”), including serving, directly or indirectly, as advisor and property manager to the Company, REIT I and, until October 28, 2019, BRIX REIT. As a result of the Merger and the Self-Management Transaction, effective December 31, 2019, the Company, its Former Advisor and BrixInvest, which wholly owned the Company's Former Advisor, mutually agreed to terminate the Advisory Agreement, and the Company became self-managed. Accordingly, disclosures with regard to the Advisory Agreement elsewhere in this Annual Report on Form 10-K pertain only to transactions with the Company's Former Advisor through December 31, 2019. Amendments to Operating Partnership Agreement On December 31, 2019, the Company, the Operating Partnership and NNN LP entered into the Second Amended and Restated Agreement of Limited Partnership (the “Amended OP Agreement”), which amended the Amended and Restated Agreement of Limited Partnership of the Operating Partnership dated August 11, 2017. The amendments included amending the name of the Operating Partnership from “Rich Uncles NNN Operating Partnership, LP” to “RW Holdings NNN REIT Operating Partnership, LP” and providing the terms of the Class M OP Units and Class P OP Units issued in connection with the Self-Management Transaction and further described below. The Class M OP Units were issued to Daisho on December 31, 2019 in connection with the Self-Management Transaction and are non-voting, non-dividend accruing, and were not able to be converted or exchanged prior to the one-year anniversary of the completion of the Self-Management Transaction. Investors holding units in BrixInvest received Daisho units in a ratio of 1:1 for an aggregate of 657,949.5 Daisho units. During 2020, Daisho distributed the Class M OP Units to its members and the Class M OP Units will become convertible into units of Class C limited partnership interest in the Operating Partnership (“Class C OP Units”) at a conversion ratio of 1.6667 3 In the event that the Class M OP Units are converted into Class C OP Units prior to December 31, 2023, such Class M OP Units shall be exchanged at the rate indicated below: Date of Exchange Early Conversion Rate From December 31, 2020 to December 30, 2021 50% of the Class M conversion ratio From December 31, 2021 to December 30, 2022 60% of the Class M conversion ratio From December 31, 2022 to December 30, 2023 70% of the Class M conversion ratio The Class M OP Units are eligible for an increase in the conversion ratio (conversion ratio enhancement) if the Company achieves both of the targets for assets under management (“AUM”) and adjusted funds from operations (“AFFO”) in a given year as set forth below and as adjusted for the 1: 3 Hurdles AUM AFFO Class M Initial Conversion Ratio 1: 1.6667 Fiscal Year 2021 $ 0.860 $ 1.77 1: 1.9167 Fiscal Year 2022 $ 1.175 $ 1.95 1: 2.5000 Fiscal Year 2023 $ 1.551 $ 2.10 1: 3.0000 Based on the current conversion ratio of 1.6667 3 21.01 3 35.02 3 The Company also issued a portion of the Class P OP Units described below in connection with the Self-Management Transaction. The Class P OP Units are intended to be treated as “profits interests” in the Operating Partnership, which are non-voting, non-dividend accruing, and are not able to be transferred or exchanged prior to the earlier of (1) March 31, 2024, (2) a change of control (as defined in the Amended OP Agreement), or (3) the date of the recipient's involuntary termination (as defined in the relevant award agreement for the Class P OP Units) (collectively, the “Lockup Period”). Following the expiration of the Lockup Period, the Class P OP Units are convertible into Class C OP Units at a conversion ratio of 1.6667 Class C OP Units (adjusted for the 1: 3 The Company issued a total of 56,029 Class P OP Units to Messrs. Halfacre and Raymond J. Pacini, the Company's Chief Financial Officer, including 26,318 Class P OP Units issued in exchange for Messrs. Halfacre's and Pacini's agreements to forfeit a similar number of restricted units in BrixInvest in connection with the Self-Management Transaction. The remaining 29,711 Class P OP Units were issued to these executives as a portion of their incentive compensation for 2020 in connection with their entry into restrictive covenant agreements. The 29,711 Class P OP Units were valued based on the estimated NAV per share of $30.48 (unaudited and adjusted for the 1: 3 1.6667 3 Under the Amended OP Agreement, once the Class M OP Units or Class P OP Units are converted into Class C OP Units, they will be exchangeable for the Company’s shares of Class C common stock on a 1-for-1 basis, or for cash at the sole and absolute discretion of the Company. The Company recorded the ownership interest of the Class M OP Units and Class P OP Units as a noncontrolling interest in the Operating Partnership representing a combined total of approximately 13% of equity in the Operating Partnership as of December 31, 2019. On February 1, 2021, the Company, the Operating Partnership and the limited partners of the Operating Partnership entered into the Third Amended and Restated Agreement of Limited Partnership, which further amended the Amended OP Agreement dated December 31, 2019. The amendments included amending the name of the Operating Partnership from “RW Holdings NNN REIT Operating Partnership, LP” to “Modiv Operating Partnership, LP” and providing the terms of the Class R OP Units granted to employees as further described in Note 11 Registration Rights Agreement On December 31, 2019, the Company, the Operating Partnership and Daisho entered into a Registration Rights Agreement pursuant to which Daisho (or any successor holder) has the right, after one year from the date of the Self-Management Transaction, to request that the Company register for resale under the Securities Act shares of the Company's Class C common stock issued or issuable to such holder in exchange for the Class C OP Units as described above. Accounting Treatment In accordance with GAAP, the Company accounted for the Self-Management Transaction as an acquisition of a business in accordance with the accounting standards codification guidance for business combinations because the parties to the transaction were not under common control and the acquisition was for an integrated set of activities and assets, consisting of inputs (executives and staff with knowledge and experience) and processes (operating a real estate investment trust and online investor website platform) that contribute to the creation of outputs (real estate transactions, asset management and generation of investors). Therefore, the total consideration transferred was allocated to the acquired net tangible and intangible assets based on their estimated fair values as of December 31, 2019. The fair value measurement of the consideration transferred is based on significant inputs not observable in the market and thus represent a Level 3 measurement as discussed in Note 2 As of December 31, 2019, the Company has substantially completed its process for measuring the fair values of the assets acquired and liabilities assumed based on information available as of the closing date. The Company incurred $1,468,913 in costs in connection with the Self-Management Transaction, which are included in the accompanying consolidated statement of operations for the year ended December 31, 2019 and an additional $201,920 in post-closing costs incurred during the year ended December 31, 2020. Purchase Price Allocation The following table summarizes the allocation of the purchase price to the fair values assigned to the BrixInvest assets acquired and liabilities assumed as of December 31, 2019, the closing date of the Self-Management Transaction. These fair values are based on internal Company and independent external third-party valuations: Fair Values Assigned December 31, 2019 Assets: Cash and cash equivalents $ (204,176 ) Prepaid expenses and other assets (305,212 ) Operating lease right-of-use asset (2,386,877 ) Intangible assets (7,700,000 ) Liabilities: Short-term notes payable 4,800,000 Due to affiliates 630,820 Bank line of credit 800,000 Accounts payable and other liabilities 2,070,968 Operating lease liability 2,386,877 Net 92,400 Add: Cancellation of investment in the Company (107,400 ) Less: Contribution of Class M OP Units and Class P OP Units 50,603,000 Goodwill $ (50,588,000 ) Prior to the closing of the Self-Management Transaction, BrixInvest held 3,580 shares (adjusted for the 1: 3 3 Goodwill The goodwill recognized was primarily attributable to the Company's ability to be self-managed, the value of the workforce which could facilitate growth opportunities from both existing and new investment income streams and the ability to offer new products, the investor platform acquired from BrixInvest and its expected synergies resulting from the Self-Management Transaction and the Merger. Key areas of expected cost synergies included increased purchasing power for acquiring properties, lower financing costs and administrative efficiencies. Goodwill was expected to be mostly non-deductible for tax purposes. As permitted under ASC 805 for business combinations, the Company recorded goodwill because the purchase price of the Self-Management Transaction exceeded the estimated fair value of net identified tangible and intangible assets acquired. However, the current COVID-19 pandemic in the United States and globally, and the magnitude and uncertain duration of the economic impacts, have resulted in challenges in attracting investor equity during this period of economic weakness and volatility. The disruption in the Company's Offerings was expected to have a protracted impact on capital raising, and the recessionary pressures on the economy resulted in real estate market uncertainty and an approximate 14% decrease in the estimated fair value of the Company’s real estate properties as of April 30, 2020 as compared with the estimated fair value of the Company’s real estate properties as of December 31, 2019 (see discussion of the Company's updated estimated NAV per share approved on May 20, 2020 in Note 1 Note 2 The net carrying amount of goodwill as of December 31, 2020 and 2019 is as follows: December 31, 2020 2019 Goodwill $ 17,320,857 $ 50,588,000 Intangible Assets Acquired The allocation of the purchase price to the net assets acquired in the Self-Management Transaction resulted in the recognition of $7,700,000 of intangible assets as of the December 31, 2019 closing date. The fair values of the acquired investor lists and developed technology assets, primarily the investor online platform, were determined using the adjusted cost approach, which approximates fair value. The useful lives of the intangible assets were determined based on the period of expected cash flows used to measure the fair value of the intangible assets adjusted as appropriate for entity-specific factors including legal, regulatory, contractual, competitive, economic, and/or other factors that may limit the useful life of the respective intangible asset. Intangible assets, net as of December 31, 2020 and 2019 and related useful lives were as follows: Weighted- December 31, Intangible Assets Average Useful Life 2020 2019 Investor list, net 5.0 years $ 3,494,740 $ 4,800,000 Web services technology, domains and licenses 3.0 years 3,466,102 2,900,000 6,960,842 7,700,000 Accumulated amortization (1,833,054 ) — Net $ 5,127,788 $ 7,700,000 No amortization expense was recorded for the intangible assets resulting from the acquisition of BrixInvest assets for the year ended December 31, 2019 due to the closing date having been on the final day of the fiscal year. During the year ended December 31, 2020, the Company acquired additional web services technology, domains and licenses intangible assets of $566,102, respectively. Amortization expense for the year ended December 31, 2020 amounted to $1,833,054. As discussed above, the COVID-19 pandemic has caused significant disruptions in the economy and uncertainties in the investment markets. Based on the impacts on the Company's investors and the economy, the Company evaluated the fair value of intangibles to determine if they exceeded the respective carrying values and determined that a portion of the investor list would no longer be viable and, therefore, an impairment charge of $1,305,260 was recorded during the quarter ended March 31, 2020. The Company conducted its annual impairment analysis of additional intangible assets as of December 31, 2020 using the qualitative factors discussed in Note 2 The estimated amortization expense for the succeeding fiscal years is as follows: 2021, $1,840,576; 2022, $1,840,576; 2023, $749,978; and 2024, $696,658. |
REAL ESTATE INVESTMENTS (FY)
REAL ESTATE INVESTMENTS (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Real Estate [Abstract] | ||
REAL ESTATE INVESTMENTS | NOTE 3. REAL ESTATE INVESTMENTS, NET As of June 30, 2021, the Company’s real estate investment portfolio consisted of 38 operating properties located in 14 states comprised of: 12 retail properties, 14 office properties and 12 industrial properties, including one industrial property classified as held for sale and an approximate 72.7% undivided TIC Interest in an industrial property in Santa Clara, California, not reflected in the table below, but discussed in Note 4. The following table provides summary information regarding the Company’s operating properties as of June 30, 2021: Property Location Acquisition Date Property Type Land, Buildings and Improvements Tenant Origination and Absorption Costs Accumulated Depreciation and Amortization Total Investment in Real Estate Property, Net Accredo Health Orlando, FL 6/15/2016 Office $ 9,855,847 $ 1,269,350 $ (2,444,918 ) $ 8,680,279 Dollar General Litchfield, ME 11/4/2016 Retail 1,281,812 116,302 (186,127 ) 1,211,987 Dollar General Wilton, ME 11/4/2016 Retail 1,543,776 140,653 (238,203 ) 1,446,226 Dollar General Thompsontown, PA 11/4/2016 Retail 1,199,860 106,730 (178,835 ) 1,127,755 Dollar General Mt. Gilead, OH 11/4/2016 Retail 1,174,188 111,847 (171,462 ) 1,114,573 Dollar General Lakeside, OH 11/4/2016 Retail 1,112,872 100,857 (175,973 ) 1,037,756 Dollar General Castalia, OH 11/4/2016 Retail 1,102,086 86,408 (170,976 ) 1,017,518 Northrop Grumman Melbourne, FL 3/7/2017 Office 12,382,991 1,469,737 (3,363,521 ) 10,489,207 exp US Services Maitland, FL 3/27/2017 Office 6,056,668 388,248 (945,261 ) 5,499,655 Harley (1) Bedford, TX 4/13/2017 Retail 12,947,054 — (1,196,054 ) 11,751,000 Wyndham Summerlin, NV 6/22/2017 Office 10,406,483 669,232 (1,347,468 ) 9,728,247 Williams Sonoma Summerlin, NV 6/22/2017 Office 8,079,612 550,486 (1,214,232 ) 7,415,866 Omnicare Richmond, VA 7/20/2017 Industrial 7,262,747 281,442 (954,774 ) 6,589,415 EMCOR Cincinnati, OH 8/29/2017 Office 5,960,610 463,488 (693,863 ) 5,730,235 Husqvarna Charlotte, NC 11/30/2017 Industrial 11,840,200 1,013,948 (1,292,198 ) 11,561,950 AvAir Chandler, AZ 12/28/2017 Industrial 27,357,899 — (2,458,171 ) 24,899,728 3 M DeKalb, IL 3/29/2018 Industrial 14,762,819 2,356,361 (4,099,258 ) 13,019,922 Cummins Nashville, TN 4/4/2018 Office 14,465,491 1,536,998 (2,549,219 ) 13,453,270 Northrop Grumman Parcel Melbourne, FL 6/21/2018 Land 329,410 — — 329,410 Texas Health Dallas, TX 9/13/2018 Office 6,976,703 713,221 (829,997 ) 6,859,927 Bon Secours Richmond, VA 10/31/2018 Office 10,388,751 800,356 (1,204,744 ) 9,984,363 Costco Issaquah, WA 12/20/2018 Office 27,330,797 2,765,136 (3,305,667 ) 26,790,266 Taylor Fresh Foods Yuma, AZ 10/24/2019 Industrial 34,194,369 2,894,017 (2,257,859 ) 34,830,527 Levins Sacramento, CA 12/31/2019 Industrial 4,429,390 221,927 (330,913 ) 4,320,404 Dollar General Bakersfield, CA 12/31/2019 Retail 4,899,714 261,630 (220,698 ) 4,940,646 Labcorp San Carlos, CA 12/31/2019 Industrial 9,672,174 408,225 (306,481 ) 9,773,918 GSA (MSHA) Vacaville, CA 12/31/2019 Office 3,112,076 243,307 (207,772 ) 3,147,611 PreK Education San Antonio, TX 12/31/2019 Retail 12,447,287 555,767 (899,142 ) 12,103,912 Dollar Tree Morrow, GA 12/31/2019 Retail 1,320,367 73,298 (106,366 ) 1,287,299 Solar Turbines San Diego, CA 12/31/2019 Office 7,133,241 284,026 (507,486 ) 6,909,781 Wood Group San Diego, CA 12/31/2019 Industrial 9,731,220 539,633 (742,040 ) 9,528,813 ITW Rippey El Dorado, CA 12/31/2019 Industrial 7,071,143 304,387 (456,010 ) 6,919,520 Dollar General Big Spring, TX 12/31/2019 Retail 1,281,683 76,351 (76,453 ) 1,281,581 Gap Rocklin, CA 12/31/2019 Office 8,378,276 360,377 (718,960 ) 8,019,693 L3Harris San Diego, CA 12/31/2019 Industrial 11,631,857 454,035 (706,233 ) 11,379,659 Sutter Health Rancho Cordova, CA 12/31/2019 Office 29,555,055 1,616,610 (1,620,523 ) 29,551,142 Walgreens Santa Maria, CA 12/31/2019 Retail 5,223,442 335,945 (199,441 ) 5,359,946 $ 343,899,970 $ 23,570,335 $ (38,377,298 ) $ 329,093,007 (1) Reclassified to real estate investment held for investment and use during the second quarter of 2021 from real estate held for sale beginning September 30, 2020 (see detailed discussion below). Impairment Charges During late March 2020, the Company learned that there would be a substantial impact on the commercial real estate market and specifically on fitness centers such as the Company's property leased at that time to 24 Hour Fitness USA, Inc. (“24 Hour Fitness”) due to the COVID-19 pandemic and the requirement of an indefinite and potentially extended period of store closures. On March 31, 2020, the Company received written notice from 24 Hour Fitness that due to circumstances beyond its control, including the response to the COVID-19 pandemic and directives and mandates of various governmental authorities affecting the Las Vegas, Nevada 24 Hour Fitness store leased from the Company, it would not make the April 2020 rent payment. Despite negotiations with the tenant, no further rent payments were received and on June 15, 2020, the Company received written notice that the lease was formally rejected in connection with 24 Hour Fitness' Chapter 11 bankruptcy proceeding and the premises were surrendered to the Company's subsidiary. The lender on the property agreed to temporarily reduce its $32,000 monthly mortgage payment by $8,000 from May through August 2020 and the Company's special purpose subsidiary determined that if it was unable to secure a replacement tenant, then it would consider allowing the lender to foreclose on, and take possession of, the property. As such, the Company concluded that it was necessary to record an impairment charge to reduce the net book value of the property to its estimated fair value. In addition, the Company determined that the effects of the COVID-19 pandemic on the overall economy and commercial real estate market would also have negative impacts on the Company's ability to re-lease two vacant properties, the property formerly leased to Dinan Cars located in Morgan Hill, CA through January 31, 2020 and the property leased to Dana, but unoccupied, located in Cedar Park, Texas. Based on an evaluation of the value of these properties, the Company determined that impairment charges were required during the three months ended March 31, 2020 to reflect the reduction in value due to the uncertainty regarding leasing or sale prospects. During the three months ended March 31, 2020, the Company recorded impairment charges aggregating $9,157,068, based on the estimated fair values of the aforementioned real estate properties. During the three months ended June 30, 2020, the Company recorded an additional impairment charge of $349,457 related to its property located in Lake Elsinore, CA and leased to Rite Aid through February 29, 2028. The Company determined that the impairment charge was required, representing the excess of the property's carrying value over the property's estimated sale price less estimated selling costs for the subsequent sale. The aggregate impairment charges of $9,157,068 represented approximately 2.2% of the Company’s total investments in real estate property before impairments as of March 31, 2020 and the impairment charge of $349,457 represented approximately 0.1% of the Company’s total investments in real estate property before impairments as of June 30, 2020. The properties formerly leased by Rite Aid, Dinan Cars, 24 Hour Fitness and Dana were sold in August, October and December 2020 and July 2021, respectively. There were no impairment charges recorded during the three and six months ended June 30, 2021. The details of the Company's real estate impairment charges for the three and six months ended June 30, 2020 were as follows: Property Location Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Rite Aid Lake Elsinore, CA $ 349,457 $ 349,457 Dana Cedar Park, TX — 2,184,395 24 Hour Fitness Las Vegas, NV — 5,664,517 Dinan Cars Morgan Hill, CA — 1,308,156 Total $ 349,457 $ 9,506,525 Acquisitions The Company did not acquire any real estate properties during the three and six months ended June 30, 2021 or during the three and six months ended June 30, 2020. See Note 12 for the description of a property leased to Raising Cane’s which the Company acquired in July 2021. Dispositions There were no disposals of properties during the three months ended June 30, 2021 nor during the three and six months ended June 30, 2020. The Company sold the following properties during the first quarter of 2021: Property Location Disposition Date Property Type Rentable Square Feet Contract Sale Price Gain on Sale Chevron Gas Station Roseville, CA 1/7/2021 Retail 3,300 $ 4,050,000 $ 228,769 EcoThrift Sacramento, CA 1/29/2021 Retail 38,536 5,375,300 51,415 Chevron Gas Station San Jose, CA 2/12/2021 Retail 1,060 4,288,888 9,458 Total 42,896 $ 13,714,188 $ 289,642 On January 7, 2021, the Company completed the sale of its Roseville, California retail property, which was leased to the operator of a Chevron gas station, for $4,050,000, which generated net proceeds of $3,914,909 after payment of commissions and closing costs. On January 29, 2021, the Company completed the sale of its Sacramento, California retail property, which was leased to EcoThrift, for $5,375,300, which generated net proceeds of $2,684,225 after repayment of the existing mortgage, commissions and closing costs. On February 12, 2021, the Company completed the sale of its San Jose, California retail property, which was leased to the operator of a Chevron gas station, for $4,288,888, which generated net proceeds of $4,054,327 after payment of commissions and closing costs. Asset Concentration The Company held no real estate property with a net book value that is greater than 10% of its total assets as of June 30, 2021 or December 31, 2020. Revenue Concentration No tenant represented the source of 10% of total revenues during the three and six months ended June 30, 2021 or during the three and six months ended June 30, 2020. Operating Leases The Company’s real estate properties are primarily leased to tenants under net leases for which terms and expirations vary. The Company monitors the credit of all tenants to stay abreast of any material changes in credit quality. The Company monitors tenant credit by (1) reviewing the credit ratings of tenants (or their parent companies or lease guarantors) that are rated by nationally recognized rating agencies; (2) reviewing financial statements and related metrics and information that are publicly available or that are required to be provided pursuant to the lease; (3) monitoring news reports and press releases regarding the tenants (or their parent companies or lease guarantors), and their underlying business and industry; and (4) monitoring the timeliness of rent collections. During the first four months of 2020, the Company paid an aggregate of $990,000 in lease incentives to cancel certain termination options related to two leases with Walgreens for its Santa Maria, California and Stockbridge, Georgia properties, resulting in extension of the leases for approximately 10 years each. The Stockbridge property was sold on August 27, 2020. These costs were capitalized and are amortized over the period of the extension for the Santa Maria property and were charged to cost of sale for the Stockbridge property in August 2020. During the three months ended June 30, 2021, the tenant in the Company's PreK Education retail property in San Antonio, Texas exercised its option to extend its lease term for eight years from the original termination of July 31, 2021 to July 31, 2029 with an increase in monthly rent. The terms of the original lease required the Company to pay a $2,000,000 term completion incentive upon exercise of the option and the tenant agreed to defer the timing of this payment to no later than January 31, 2022. The deferred lease incentive is presented under prepaid and other assets and the obligation is included in accounts payable, accrued and other liabilities in the Company's balance sheet as of June 30, 2021. As of June 30, 2021, the future minimum contractual rent payments due to the Company under the Company’s non-cancellable operating leases, including lease amendments executed through August 13, 2021 and excluding rents due related to the real estate investments held for sale, are as follows: July through December 2021 $ 13,219,545 2022 25,533,893 2023 22,070,671 2024 21,588,111 2025 18,369,437 2026 11,524,427 Thereafter 42,329,568 $ 154,635,652 Lease Intangible Assets, Net As of June 30, 2021, the Company’s lease intangible assets were as follows: Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles Cost $ 23,570,335 $ 1,128,549 $ (15,097,132 ) Accumulated amortization (11,210,646 ) (372,620 ) 3,266,545 Net amount $ 12,359,689 $ 755,929 $ (11,830,587 ) The intangible assets acquired in connection with the acquisitions have a weighted average amortization period of approximately 9.4 As of June 30, 2021, the amortization of intangible assets for the nine months ending December 31, 2021 and for each year of the next five years and thereafter is expected to be as follows: Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles July through December 2021 $ 1,609,387 $ 64,909 $ (727,614 ) 2022 2,682,533 129,823 (1,217,029 ) 2023 1,805,532 127,174 (921,169 ) 2024 1,689,428 122,543 (917,750 ) 2025 1,311,545 115,996 (917,750 ) 2026 601,734 78,557 (912,347 ) Thereafter 2,659,530 116,927 (6,216,928 ) $ 12,359,689 $ 755,929 $ (11,830,587 ) Weighted-average remaining amortization period 7.1 6.8 11.9 Real Estate Investments Held For Sale As a result of the COVID-19 pandemic discussed in Note 1, starting during the second quarter of 2020, the Company deemed it necessary to sell certain of its real estate investment properties to generate funds for share repurchases and certain debt obligations. During 2020, the Company identified nine real estate properties (eight retail properties and one industrial property) as held for sale. During the second half of 2020, five of the nine properties (four retail properties and one industrial property) were sold. Of the four remaining retail properties held for sale as of December 31, 2020, the Company sold three retail properties during the first quarter of 2021: the EcoThrift property and the two Chevron properties (see Dispositions above for more details). The Harley Davidson retail property, which was the only property held for sale as of March 31, 2021, was reclassified as held for investment and use during the second quarter of 2021 (see discussion in Change in Plan of Sale During the second quarter of 2021, the Company identified and reclassified the industrial property located in Cedar Park, Texas leased to Dana Incorporated as real estate investment held for sale. This unoccupied property was subsequently sold on July 7, 2021 (see Note 12 for more details). The following table summarizes the major components of assets and liabilities related to real estate investments held for sale as of June 30, 2021 (Dana property) and December 31, 2020 (Harley Davidson, EcoThrift and two Chevron properties): June 30, 2021 December 31, 2020 Assets related to real estate investments held for sale: Land, buildings and improvements $ 6,802,876 $ 25,675,459 Tenant origination and absorption costs 531,439 554,788 Accumulated depreciation and amortization (1,958,569 ) (1,644,508 ) Real estate investments held for sale, net 5,375,746 24,585,739 Other assets, net 671,265 1,079,361 Total assets related to real estate investments held for sale: $ 6,047,011 $ 25,665,100 Liabilities related to real estate investments held for sale: Mortgage notes payable, net $ 4,381,426 $ 9,088,438 Other liabilities, net 227,433 801,337 Total liabilities related to real estate investments held for sale: $ 4,608,859 $ 9,889,775 The following table summarizes the major components of rental income, expenses and impairment related to real estate investments held for sale as of June 30, 2021 (the property leased to Dana) and 2020 (the property leased to Island Pacific Supermarket located in Elk Grove, CA, the property leased to Rite Aid located in Lake Elsinore, CA, the property leased to Walgreens located in Stockbridge, GA and the property previously leased to Dinan Cars located in Morgan Hill, CA), which were included in continuing operations for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total revenues $ 342,198 $ 312,060 $ 716,160 $ 1,480,909 Expenses: Interest expense 63,207 83,658 138,629 221,022 Depreciation and amortization 49,108 185,658 122,769 375,575 Other expenses 78,857 101,131 145,797 221,811 Impairment — 349,457 — 1,657,613 Total expenses 191,172 719,904 407,195 2,476,021 Net income (loss) $ 151,026 $ (407,844 ) $ 308,965 $ (995,112 ) Change in Plan of Sale On September 30, 2020, the Company reclassified the Harley Davidson property’s net book value (“NBV”) of $12,010,919 to real estate held for sale and suspended recording depreciation for the property as of that date. On December 31, 2020, the Company recorded an impairment loss of $632,233 based on the expected net proceeds of sale of the property of $12,117,500 compared to the property's NBV combined with the outstanding straight-line rent receivable balance. Following unsuccessful efforts to sell the property at a price which would be acceptable to the Company, the Company decided to withdraw its decision to sell the property during June 2021 and reclassified the Harley Davidson property to real estate investment held for investment and use. At the time of the decision to reclassify the property to real estate investment held for investment and use in June 2021, the carrying value of the property would have been $11,779,687 if continuously depreciated since September 30, 2020. The fair value of the property as of the June 2021 determination was $11,860,000, based on management’s value for the property in the June 30, 2021 NAV analysis (the most recent valuation). As provided by ASC 360-10, since the adjusted carrying value of the property of $11,779,687 was lower than its fair value of $11,860,000, the Company adjusted the net book value of the property to its adjusted carrying value of $11,779,687. The recording of the property at its adjusted carrying value resulted in an adjustment to reduce the impairment loss recorded as of December 31, 2020 by $400,999 during the three months ended June 30, 2021. | NOTE 4. REAL ESTATE INVESTMENTS As of December 31, 2020, the Company’s real estate investment portfolio consisted of (i) 36 operating properties located in 14 states (including 14 operating properties of the original 20 operating properties acquired in connection with the Merger on December 31, 2019) and comprised of: 11 retail properties, 14 office properties and 11 industrial properties, (ii) one parcel of land, which currently serves as an easement to one of the Company’s office properties and (iii) a 72.7% undivided TIC Interest in an office property in Santa Clara, California, not reflected in the table below, but discussed in Note 5 The following table provides summary information regarding the Company’s real estate portfolio as of December 31, 2020: Property Location Acquisition Date Property Type Land, Buildings and Improvements Tenant Origination and Absorption Costs Accumulated Depreciation and Amortization Total Investment in Real Estate Property, Net Accredo Health Orlando, FL 6/15/2016 Office $ 9,855,847 $ 1,269,351 $ (2,221,380 ) $ 8,903,818 Dollar General Litchfield, ME 11/4/2016 Retail 1,281,812 116,302 (166,006 ) 1,232,108 Dollar General Wilton, ME 11/4/2016 Retail 1,543,776 140,653 (212,451 ) 1,471,978 Dollar General Thompsontown, PA 11/4/2016 Retail 1,199,860 106,730 (159,501 ) 1,147,089 Dollar General Mt. Gilead, OH 11/4/2016 Retail 1,174,188 111,847 (152,925 ) 1,133,110 Dollar General Lakeside, OH 11/4/2016 Retail 1,112,872 100,857 (156,949 ) 1,056,780 Dollar General Castalia, OH 11/4/2016 Retail 1,102,086 86,408 (152,492 ) 1,036,002 Dana Cedar Park, TX 12/27/2016 Industrial 6,802,876 531,439 (1,835,800 ) 5,498,515 Northrop Grumman Melbourne, FL 3/7/2017 Office 12,382,991 1,341,199 (2,968,985 ) 10,755,205 exp US Services Maitland, FL 3/27/2017 Office 6,056,668 388,248 (833,278 ) 5,611,638 Wyndham Summerlin, NV 6/22/2017 Office 10,406,483 669,232 (1,170,222 ) 9,905,493 Williams Sonoma Summerlin, NV 6/22/2017 Office 8,079,612 550,486 (1,058,455 ) 7,571,643 Omnicare Richmond, VA 7/20/2017 Industrial 7,262,747 281,442 (832,474 ) 6,711,715 EMCOR Cincinnati, OH 8/29/2017 Office 5,960,610 463,488 (604,163 ) 5,819,935 Husqvarna Charlotte, NC 11/30/2017 Industrial 11,840,200 1,013,948 (1,113,651 ) 11,740,497 AvAir Chandler, AZ 12/28/2017 Industrial 27,357,900 — (2,111,134 ) 25,246,766 3M DeKalb, IL 3/29/2018 Industrial 14,762,819 2,356,361 (3,476,588 ) 13,642,592 Cummins Nashville, TN 4/4/2018 Office 14,465,491 1,536,998 (2,151,938 ) 13,850,551 Northrop Grumman Parcel Melbourne, FL 6/21/2018 Land 329,410 — — 329,410 Texas Health Dallas, TX 9/13/2018 Office 6,976,703 713,221 (681,341 ) 7,008,583 Bon Secours Richmond, VA 10/31/2018 Office 10,388,751 800,356 (978,335 ) 10,210,772 Costco Issaquah, WA 12/20/2018 Office 27,330,797 2,765,136 (2,654,329 ) 27,441,604 Taylor Fresh Foods Yuma, AZ 10/24/2019 Industrial 34,194,369 2,894,017 (1,597,022 ) 35,491,364 Levins Sacramento, CA 12/31/2019 Industrial 4,429,390 221,927 (220,609 ) 4,430,708 Dollar General Bakersfield, CA 12/31/2019 Retail 4,899,714 261,630 (147,132 ) 5,014,212 PMI Preclinical San Carlos, CA 12/31/2019 Industrial 9,672,174 408,225 (204,321 ) 9,876,078 GSA (MSHA) Vacaville, CA 12/31/2019 Office 3,112,076 243,307 (138,515 ) 3,216,868 PreK Education San Antonio, TX 12/31/2019 Retail 12,447,287 447,927 (599,428 ) 12,295,786 Dollar Tree Morrow, GA 12/31/2019 Retail 1,320,367 73,298 (70,911 ) 1,322,754 Solar Turbines San Diego, CA 12/31/2019 Office 7,133,241 284,026 (338,232 ) 7,079,035 Wood Group San Diego, CA 12/31/2019 Industrial 9,731,220 466,293 (565,017 ) 9,632,496 ITW Rippey El Dorado Hills, CA 12/31/2019 Industrial 7,071,143 304,387 (303,219 ) 7,072,311 Dollar General Big Spring, TX 12/31/2019 Retail 1,281,683 76,351 (50,969 ) 1,307,065 Gap Rocklin, CA 12/31/2019 Office 8,378,276 360,377 (479,306 ) 8,259,347 L-3 Communications Carlsbad, CA 12/31/2019 Industrial 11,631,857 454,035 (470,823 ) 11,615,069 Sutter Health Rancho Cordova, CA 12/31/2019 Office 29,555,055 1,616,610 (1,080,349 ) 30,091,316 Walgreens Santa Maria, CA 12/31/2019 Retail 5,223,442 335,945 (132,961 ) 5,426,426 $ 337,755,793 $ 23,792,057 $ (32,091,211 ) $ 329,456,639 Impairment Charges During late March 2020, the Company learned that there would be a substantial impact on the commercial real estate market and specifically on fitness centers due to the COVID-19 pandemic and the requirement of an indefinite and potentially extended period of store closures. On March 31, 2020, the Company received written notice from 24 Hour Fitness USA, Inc. (“24 Hour Fitness”) that due to circumstances beyond its control, including the response to the COVID-19 pandemic and directives and mandates of various governmental authorities, the Las Vegas, Nevada 24 Hour Fitness store leased from the Company had been closed on or about March 17, 2020 and remained closed as of the date of the tenant's notice. The tenant's notice stated that it would not make the April 2020 rent payment. The Company's special purpose subsidiary, which owns the property, immediately initiated negotiations with the tenant; however, no further rent payments were received and on June 15, 2020, the Company received written notice that the lease was formally rejected in connection with 24 Hour Fitness' Chapter 11 bankruptcy proceeding and the premises were surrendered to the Company's subsidiary. On April 1, 2020, the Company’s special purpose subsidiary initiated negotiations with the lender on the property, and requested a deferral of mortgage payments until the tenant resumed paying rent. The lender did not agree to provide any substantial mortgage relief to the Company's special purpose subsidiary, but agreed to temporarily reduce its $32,000 monthly mortgage payment by $8,000 from May 2020 through August 2020. The Company's special purpose subsidiary determined that if it was unable to secure a replacement tenant, then it would consider allowing the lender to foreclose on, and take possession of, the property. As such, the Company concluded that it was necessary to record an impairment charge to reduce the net book value of the property to its estimated fair value. In addition, the Company determined that the effects of the COVID-19 pandemic on the overall economy and commercial real estate market would also negatively impact the Company's ability to re-lease two vacant properties, the property formerly leased to Dinan Cars through January 31, 2020 located in Morgan Hill, California and the property leased to Dana, but currently unoccupied, located in Cedar Park, Texas. Based on an evaluation of the value of these two properties, the Company determined that impairment charges were required to reflect the reduction in value due to the uncertainty regarding leasing or sale prospects. During the three months ended March 31, 2020, the Company recorded impairment charges aggregating $9,157,068 based on the estimated fair value of the real estate properties discussed above. During the three months ended June 30, 2020 and December 31, 2020, the Company recorded additional impairment charges related to properties held for sale. As of June 30, 2020, the Company recorded an impairment charge of $349,457 related to the property located in Lake Elsinore, California and leased to Rite Aid through February 29, 2028. As of December 31, 2020, the Company recorded an aggregate of $761,100 in impairment charges related to its property located in Bedford, Texas and leased to the operator of a Harley Davidson dealership through April 12, 2032 and its property located in San Jose, California and leased to the operator of a Chevron gas station through May 31, 2025. The impairment charges related to the properties located in Lake Elsinore and San Jose, California reflect the excess of the property's carrying value over the property's sale price less estimated selling costs (see below for discussion of the property sale), while the impairment charge related to the property located in Bedford, Texas pertained to a portion of the Company's straight-line rent receivable for this property which the Company does not expect to recover as a result of the planned sale (see below for discussion of the property classification to held for sale). The aggregated impairment charges of $10,267,625 during the year ended December 31, 2020 represented approximately 2.5% of the Company’s total investments in real estate property as of December 31, 2020. The details of the Company's real estate impairment charges for the year ended December 31, 2020 were as follows: Property Location Year Ended December 31, 2020 Dana Cedar Park, TX $ 2,184,395 24 Hour Fitness Las Vegas, NV 5,664,517 Dinan Cars Morgan Hill, CA 1,308,156 Rite Aid Lake Elsinore, CA 349,457 Harley Davidson Bedford, TX 632,233 Chevron Gas Station San Jose, CA 128,867 $ 10,267,625 Acquisitions: The Company acquired no real estate properties during the year ended December 31, 2020. During the year ended December 31, 2019, the Company acquired the following real estate properties: Property Land Buildings and Improvements Tenant Origination and Absorption Costs Above- Market Lease Intangibles Below-Market Lease Intangibles Total REIT I Property Portfolio: Chevron Gas Station, San Jose $ 3,787,021 $ 267,738 $ 145,577 $ 41,739 $ — $ 4,242,075 Levins 1,404,863 3,024,527 221,927 26,469 — 4,677,786 Chevron Gas Station, Roseville 2,636,663 1,011,908 136,415 24,432 — 3,809,418 Island Pacific Supermarket 676,981 1,883,330 197,495 — (76,351 ) 2,681,455 Dollar General, Bakersfield 1,099,458 3,800,256 261,630 — (41,739 ) 5,119,605 Rite Aid 3,939,724 2,902,365 420,441 186,297 — 7,448,827 PMI Preclinical 4,774,497 4,897,677 408,225 115,036 — 10,195,435 EcoThrift 2,300,717 3,249,509 273,846 — (388,882 ) 5,435,190 GSA (MSHA) 399,062 2,713,014 243,307 — (101,802 ) 3,253,581 PreK San Antonio 963,044 11,484,243 447,927 — (28,504 ) 12,866,710 Dollar Tree 159,829 1,160,538 73,298 10,180 — 1,403,845 Dinan Cars 2,453,420 3,799,237 — — — 6,252,657 Solar Turbines 2,483,960 4,649,281 284,026 — (108,928 ) 7,308,339 Wood Group 3,461,256 6,269,964 392,955 — — 10,124,175 ITW Rippey 787,945 6,283,198 304,387 — — 7,375,530 Dollar General, Big Spring 103,838 1,177,845 76,351 — (127,252 ) 1,230,782 Gap 2,076,754 6,301,522 360,377 — (68,207 ) 8,670,446 L-3 Communications 3,552,878 8,078,979 454,035 — (174,081 ) 11,911,811 Sutter Health 2,443,240 27,111,815 1,616,610 87,549 — 31,259,214 Walgreens 1,832,430 3,391,012 335,945 272,829 — 5,832,216 Total REIT I Property Portfolio 41,337,580 103,457,958 6,654,774 764,531 (1,115,746 ) 151,099,097 Taylor Fresh Foods 4,312,016 29,882,353 2,894,017 — (11,526,976 ) 25,561,410 $ 45,649,596 $ 133,340,311 $ 9,548,791 $ 764,531 $ (12,642,722 ) $ 176,660,507 Purchase price and other acquisition costs $ 176,660,507 Purchase deposit applied (2,000,000 ) Acquisition fees to affiliate related to Taylor Fresh Foods (Note 9) (741,000 ) Acquisition of real estate before financing $ 173,919,507 Capitalized acquisition fee paid to the Former Advisor for a property acquired during the year ended December 31, 2019 is as follows: Property Amount Taylor Fresh Foods $ 741,000 The Company also paid the Former Advisor capitalized acquisition fees of $5,459 during the year ended December 31, 2019 related to additions to real estate investments. During the year ended December 31, 2019, the Company recognized $548,362 of total revenue related to the Taylor Fresh foods property. No revenue was recognized related to the 20 properties acquired in the Merger because the transaction closed on December 31, 2019. The noncancellable lease terms of the properties acquired during the year ended December 31, 2019 were as follows: Property Lease Expiration Chevron Gas Station 5/27/2025 Levins 8/20/2023 Chevron Gas Station 9/30/2025 Island Pacific Supermarket 5/31/2025 Dollar General 7/31/2028 Rite Aid 2/25/2028 PMI Preclinical 10/31/2025 EcoThrift 2/28/2026 GSA (MSHA) 8/24/2026 PreK San Antonio 7/31/2021 Dollar Tree 7/31/2025 Dinan Cars 4/30/2023 Solar Turbines 2/28/2021 Amec Foster 7/31/2021 ITW Rippey 8/1/2022 Dollar General Big Spring 4/30/2030 Gap 2/28/2023 L-3 Communications 4/30/2022 Sutter Health 10/31/2025 Walgreens 2/28/2031 Taylor Fresh Foods 9/30/2033 Dispositions: The Company sold the following properties during the year ended December 31, 2020: Property Location Disposition Date Property Type Rentable Square Feet Contract Sale Price Gain (Loss) on Sale Rite Aid Lake Elsinore, CA 8/3/2020 Retail 17,272 $ 7,250,000 $ (422 ) Walgreens Stockbridge, GA 8/27/2020 Retail 15,120 5,538,462 1,306,768 Island Pacific Supermarket Elk Grove, CA 9/16/2020 Retail 13,963 3,155,000 387,296 Dinan Cars Morgan Hill, CA 10/28/2020 Industrial 27,296 6,100,000 961,836 24 Hour Fitness Las Vegas, NV 12/16/2020 Retail 45,000 9,052,941 1,484,271 118,651 $ 31,096,403 $ 4,139,749 On August 3, 2020, the Company completed the sale of its Lake Elsinore, California retail property which was leased to Rite Aid for $7,250,000, which generated net proceeds of $3,299,016 after repayment of the existing mortgage, commissions and closing costs. Prior to the sale, the Company evaluated the Rite Aid property for impairment and recognized a $349,457 impairment charge during the three months ended June 30, 2020 in order to reduce the carrying value of the property to its estimated net realizable value. On August 27, 2020, the Company completed the sale of its Stockbridge, Georgia retail property which was leased to Walgreens for $5,538,462, which generated net proceeds of $5,296,356 after payment of commissions and closing costs. The mortgage for this property was previously repaid on August 10, 2020 in connection with the refinancing of the Accredo property as discussed in Note 7. On September 16, 2020, the Company completed the sale of its Elk Grove, California retail property which was leased to Island Pacific for $3,155,000, which generated net proceeds of $1,124,016 after repayment of the existing mortgage, commissions and closing costs. On October 28, 2020, the Company completed the sale of its Morgan Hill, California industrial property which was formerly leased to Dinan Cars for $6,100,000, which generated net proceeds of $3,811,580 after repayment of the existing mortgage, commissions and closing costs. Prior to the sale, the Company recognized an impairment charge for $1,308,156 during the three months ended March 31, 2020. On December 16, 2020, the Company completed the sale of its Las Vegas, Nevada retail property which was formerly leased to 24 Hour Fitness for $9,052,941, which is expected to generate net proceeds of $1,324,383 upon collection of the receivable from the buyer and after assignment of the existing mortgage to the buyer, payment of commissions and closing costs, and reserves for tenant improvements and free rent. Prior to the sale, the Company recognized an impairment charge for $5,664,517 during the three months ended March 31, 2020. There were no disposition of properties during the year ended December 31, 2019. Asset Concentration The Company holds no real estate property with a net book value that is greater than 10% of its total assets as of December 31, 2020 and 2019. Revenue Concentration No tenants represented the source of 10% of total revenues during the year ended December 31, 2020. The Company’s revenue concentration based on tenants representing greater than 10% of total revenues for the year ended December 31, 2019 is as follows: 2019 Property and Location Revenue Percentage of Total Revenue AvAir, Chandler, AZ $ 2,670,159 10.9 % Operating Leases The Company’s real estate properties are primarily leased to tenants under net leases for which terms and expirations vary. The Company monitors the credit of all tenants to stay abreast of any material changes in credit quality. The Company monitors tenant credit by (1) reviewing the credit ratings of tenants (or their parent companies or lease guarantors) that are rated by nationally recognized rating agencies; (2) reviewing financial statements and related metrics and information that are publicly available or that are required to be provided pursuant to the lease; (3) monitoring news reports and press releases regarding the tenants (or their parent companies or lease guarantors), and their underlying business and industry; and (4) monitoring the timeliness of rent collections. During the first four months of 2020, the Company paid an aggregate of $990,000 in lease incentives to cancel certain termination options related to two leases with Walgreens for its Santa Maria, California and Stockbridge, Georgia properties, resulting in extension of the leases for approximately 10 years each. The Stockbridge property was sold on August 27, 2020 as discussed above. These costs were capitalized and will be amortized over the period of the extension for the Santa Maria property and were charged to cost of sale for the Stockbridge property. Effective August 1, 2020, the Company executed an amendment to accelerate the termination of the Dana lease from July 31, 2024 to July 31, 2022 in exchange for the right to receive an early termination payment of $1,381,767 due on July 31, 2022 and continued rent payments of $65,000 per month from August 1, 2020 through July 1, 2022. In the event that the Company is able to re-lease or sell the Dana property prior to July 31, 2022, Dana would be obligated to continue paying rent of $65,000 per month through July 1, 2022 or may elect to pay a cash lump sum payment to the Company equal to the net present value of the remaining rent payments. This amendment is a modification of the existing lease for accounting purposes and the revised payment stream, including the early termination payment, is reflected for the balance of the revised lease term on a straight-line basis. As of December 31, 2020, the future minimum contractual rent payments due under the Company’s noncancelable operating leases, including lease amendments executed subsequent to December 31, 2020 and excluding rents due related to real estate investments held for sale, are as follows: 2021 $ 26,761,843 2022 24,418,710 2023 20,157,378 2024 19,674,819 2025 16,456,145 Thereafter 43,827,967 $ 151,296,862 During the first quarter of 2021, the Company entered into additional lease extensions for the properties leased to Northrop Grumman in Melbourne, Florida and two Dollar General properties in Castalia, Ohio and Lakeside, Ohio as further discussed in Note 11- Subsequent Events Intangibles As of December 31, 2020 and 2019, the Company’s intangible assets were as follows: December 31, 2020 December 31, 2019 Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles Tenant Origination and Absorption Above-Market Lease Intangibles Below-Market Lease Intangibles Cost $ 23,792,057 $ 1,128,549 $ (15,163,672 ) $ 27,266,610 $ 1,547,646 $ (15,713,975 ) Accumulated amortization (9,695,960 ) (307,707 ) 2,597,935 (6,005,248 ) (295,912 ) 1,122,616 Net amount $ 14,096,097 $ 820,842 $ (12,565,737 ) $ 21,261,362 $ 1,251,734 $ (14,591,359 ) The intangible assets acquired in connection with these real estate properties have a weighted average amortization period of approximately 9.4 years As of December 31, 2020, amortization of intangible assets for each year of the next five years and thereafter is expected to be as follows: Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles 2021 $ 3,801,383 $ 129,823 $ (1,462,730 ) 2022 2,628,700 129,823 (1,217,076 ) 2023 1,751,653 127,174 (921,169 ) 2024 1,625,159 122,543 (917,750 ) 2025 1,242,973 115,995 (917,750 ) Thereafter 3,046,229 195,484 (7,129,262 ) $ 14,096,097 $ 820,842 $ (12,565,737 ) Weighted-Average Remaining Amortization Period 7.1 years 7.2 years 12.2 years Real Estate Investments Held For Sale As a result of the COVID-19 pandemic discussed in Note 1 During the three months ended June 30, 2020, the Company identified four real estate investment properties as held for sale. These four properties consisted of three retail properties (the property leased to Island Pacific Supermarket through May 30, 2033 located in Elk Grove, California, the property leased to Rite Aid through February 29, 2028 located in Lake Elsinore, California and the property leased to Walgreens through February 28, 2031 located in Stockbridge, Georgia) and one industrial property previously leased to Dinan Cars located in Morgan Hill, California. As discussed above, these four properties were sold during the year ended December 31, 2020. As discussed below, additional properties were identified as held for sale during the third and fourth quarters of 2020. During the three months ended September 30, 2020, the Company determined to sell two additional retail properties (the property leased to the operator of a Harley Davidson dealership through April 12, 2032 located in Bedford, Texas and the property formerly leased to 24 Hour Fitness located in Las Vegas, Nevada). As discussed above, the property formerly leased to 24 Hour Fitness was sold during the year ended December 31, 2020. During the three months ended December 31, 2020, the Company determined to sell three more retail properties (the property leased to Chevron through September 30, 2025 located in Roseville, California; the property leased to EcoThrift through February 26, 2026 located in Sacramento, California; and the property leased to Chevron through May 31, 2025 located in San Jose, California). As of December 31, 2020, the Company has four retail properties held for sale, namely: the Harley Davidson property, the EcoThrift property and the two Chevron properties. The property leased to EcoThrift and the two properties leased to Chevron were sold subsequent to December 31, 2020 (see Note 11 The following table summarizes the major components of assets and liabilities related to real estate investments held for sale as of December 31, 2020: December 31, 2020 Assets related to real estate investments held for sale: Land, buildings and improvements $ 25,675,459 Tenant origination and absorption costs 554,788 Accumulated depreciation and amortization (1,644,508 ) Real estate investments held for sale, net 24,585,739 Other assets, net 1,079,361 Total assets related to real estate investments held for sale: $ 25,665,100 Liabilities related to real estate investments held for sale: Mortgage notes payable, net $ 9,088,438 Other liabilities, net 801,337 Total liabilities related to real estate investments held for sale: $ 9,889,775 The following table summarizes the major components of rental income, expenses and impairment related to real estate investments held for sale as of December 31, 2020, which were included in continuing operations for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Total revenues $ 2,326,058 $ 1,325,265 Expenses: Interest expense 552,246 323,460 Depreciation and amortization 737,278 344,708 Other expenses 352,280 385,282 Impairment of real estate properties 761,100 — Total expenses 2,402,904 1,053,450 Net (loss) income $ (76,846 ) $ 271,815 As discussed in Note 3 |
INVESTMENT IN UNCONSOLIDATED EN
INVESTMENT IN UNCONSOLIDATED ENTITY (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
INVESTMENT IN UNCONSOLIDATED ENTITY | NOTE 4. INVESTMENT IN UNCONSOLIDATED ENTITY The Company’s investment in unconsolidated entity as of June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 The TIC Interest $ 9,987,703 $ 10,002,368 The Company’s income from investment in unconsolidated entity for the three and six months ended June 30, 2021 and 2020, is as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 The TIC Interest $ 74,834 $ 125,658 $ 147,302 $ 146,411 TIC Interest During 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired an approximate 72.7% interest in an industrial property in Santa Clara, California. The remaining approximate 27.3% of undivided interest in the Santa Clara property is held by Hagg Lane II, LLC (an approximate 23.4% interest) and Hagg Lane III, LLC (an approximate 3.9% interest). The manager of both Hagg Lane II, LLC and Hagg Lane III, LLC became a member of the Company's board of directors in December 2019. The Santa Clara property does not qualify as a variable interest entity and consolidation is not required as the Company’s TIC Interest does not control the property. Therefore, the Company accounts for the TIC Interest using the equity method. The Company receives approximately 72.7% of the cash flow distributions and recognizes approximately 72.7% of the results of operations. During the three months ended June 30, 2021 and 2020, the Company received $82,588 and $169,158 in cash distributions, respectively, and $161,967 and $334,189 during the six months ended June 30, 2021 and 2020, respectively. The following is summarized financial information for the Santa Clara property as of June 30, 2021 and December 31, 2020 and for the three and six months ended June 30, 2021 and 2020: June 30, 2021 December 31, 2020 Assets: Real estate investments, net $ 29,406,115 $ 29,906,146 Cash and cash equivalents 786,775 380,774 Other assets 50,041 164,684 Total assets $ 30,242,931 $ 30,451,604 Liabilities: Mortgage note payable, net $ 13,354,714 $ 13,489,126 Below-market lease, net 2,733,780 2,806,973 Other liabilities 111,598 92,777 Total liabilities 16,200,092 16,388,876 Total equity 14,042,839 14,062,728 Total liabilities and equity $ 30,242,931 $ 30,451,604 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total revenues $ 676,936 $ 751,653 $ 1,350,912 $ 1,349,573 Expenses: Interest expense 138,036 140,906 275,642 282,609 Depreciation and amortization 250,015 250,680 500,030 499,898 Other expenses 185,964 187,246 372,652 365,703 Total expenses 574,015 578,832 1,148,324 1,148,210 Net income $ 102,921 $ 172,821 $ 202,588 $ 201,363 | NOTE 5. INVESTMENT IN UNCONSOLIDATED ENTITY The Company’s investment in unconsolidated entity as of December 31, 2020 and 2019 is as follows: December 31, 2020 2019 The TIC Interest $ 10,002,368 $ 10,388,588 As discussed in Note 3, REIT I merged with and into the Company on December 31, 2019. The Company’s income (loss) from investments in unconsolidated entities for the years ended December 31, 2020 and 2019 is as follows: Years Ended December 31, 2020 2019 The TIC Interest $ 296,780 $ 296,691 REIT I — (62,643 ) Total $ 296,780 $ 234,048 The TIC Interest During 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired the approximate 72.7% TIC Interest. The remaining approximate 27.3% undivided interest in the Santa Clara property is held by Hagg Lane II, LLC (an approximate 23.4%) and Hagg Lane III, LLC (an approximate 3.9%). The manager of Hagg Lane II, LLC and Hagg Lane III, LLC became a member of the Company's board of directors in December 2019. The Santa Clara property does not qualify as a variable interest entity and consolidation is not required as the Company's TIC Interest does not control the property. Therefore, the Company accounts for the TIC Interest using the equity method. The property lease expiration date is March 16, 2026 and the lease provides for three five-year renewal options. The Company receives approximately 72.7% of the cash flow distributions and recognizes approximately 72.7% of the results of operations. During the years ended December 31, 2020 and 2019, the Company received $683,000 and $657,435 in cash distributions, respectively. The following is summarized financial information for the Santa Clara property as of and for the years ended December 31, 2020 and 2019: December 31, 2020 2019 Assets: Real estate investments, net $ 29,906,146 $ 30,858,240 Cash and cash equivalents 380,774 275,760 Other assets 164,684 228,770 Total assets $ 30,451,604 $ 31,362,770 Liabilities: Mortgage notes payable, net $ 13,489,126 $ 13,746,635 Below-market lease, net 2,806,973 2,953,360 Other liabilities 92,777 68,587 Total liabilities 16,388,876 16,768,582 Total equity 14,062,728 14,594,188 Total liabilities and equity $ 30,451,604 $ 31,362,770 Years Ended December 31, 2020 2019 Total revenue $ 2,694,874 $ 2,705,126 Expenses: Depreciation and amortization 999,929 993,564 Interest expense 565,778 574,086 Other expenses 721,279 731,044 Total expenses 2,286,986 2,298,694 Net income $ 407,888 $ 406,432 REIT I Prior to the Merger on December 31, 2019, the Company had an approximate 4.8% ownership interest in REIT I. The Company recorded its share of loss of REIT I based on REIT I’s results of operations for the year ended December 31, 2019. During the year ended December 31, 2019, the Company received $372,351 in cash distributions related to its investment in REIT I. The following is REIT I's summarized results of operations for the year ended December 31, 2019: Year Ended December 31, 2019 Total revenue $ 13,132,226 Expenses: Depreciation and amortization 5,787,709 Interest expense 3,425,625 Other expenses 5,342,365 Total expenses 14,555,699 Other income: Gain on sale of real estate investment property, net (1,850,845 ) Loss on debt restructuring 1,964,618 Total other income 113,773 Net loss $ (1,309,700 ) |
CONSOLIDATED BALANCE SHEETS DET
CONSOLIDATED BALANCE SHEETS DETAILS (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Payables and Accruals [Abstract] | ||
CONSOLIDATED BALANCE SHEETS DETAILS | NOTE 6. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS Tenant Receivables, Net Tenant receivables consisted of the following: June 30, 2021 December 31, 2020 Straight-line rent $ 5,163,964 $ 4,344,388 Tenant rent 384,661 204,775 Tenant reimbursements 1,607,198 2,116,627 Total $ 7,155,823 $ 6,665,790 Accounts Payable, Accrued and Other Liabilities Accounts payable, accrued and other liabilities were comprised of the following: June 30, 2021 December 31, 2020 Accounts payable $ 398,793 $ 1,136,954 Accrued expenses 2,505,713 3,068,714 Accrued distributions 649,812 706,106 Accrued interest payable 580,882 629,628 Unearned rent 1,684,491 2,033,065 Lease incentive obligation 2,133,695 5,157 Total $ 7,953,386 $ 7,579,624 | NOTE 6. CONSOLIDATED BALANCE SHEETS DETAILS Tenant Receivables Tenant receivables consisted of the following: December 31, 2020 2019 Straight-line rent $ 4,344,388 $ 3,541,238 Tenant rent 204,775 420,959 Tenant reimbursements 1,979,963 1,854,883 Tenant other 136,664 407,684 Total $ 6,665,790 $ 6,224,764 Accounts Payable, Accrued and Other Liabilities Accounts payable, accrued and other liabilities were comprised of the following: December 31, 2020 2019 Accounts payable $ 1,136,954 $ 660,111 Accrued expenses (a) 3,068,714 5,773,214 Accrued dividends 706,106 962,615 Accrued interest payable 629,628 1,690,168 Unearned rent 2,033,065 1,963,896 Lease incentive obligation 5,157 505,157 Total $ 7,579,624 $ 11,555,161 (a) Includes accrued Merger expenses of $1,570,622 as of December 31, 2019. |
DEBT (FY)
DEBT (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Debt | NOTE 7. DEBT Mortgage Notes Payable, Net As of June 30, 2021 and December 31, 2020, the Company’s mortgage notes payable consisted of the following: Collateral 2021 Principal Amount 2020 Principal Amount Contractual Interest Rate (1) Effective Interest Rate (1) Loan Maturity Accredo property $ 8,538,000 $ 8,538,000 3.80 % 3.80 % 8/1/2025 Six Dollar General properties 3,711,118 3,747,520 4.69 % 4.69 % 4/1/2022 Dana property — 4,466,865 4.56 % 4.56 % 4/1/2023 Northrop Grumman property (8) 7,000,000 5,518,589 3.35 % 3.35 % 5/21/2031 exp US Services property 3,288,786 3,321,931 (4 ) 4.25 % 11/17/2024 Harley Davidson property (2) 6,558,170 — 4.25 % 4.25 % 9/1/2024 Wyndham property (3) 5,551,200 5,607,000 One-month LIBOR + 2.05% 4.34 % 6/5/2027 Williams Sonoma property (3) 4,392,000 4,438,200 One-month LIBOR + 2.05% 4.34 % 6/5/2022 Omnicare property 4,151,386 4,193,171 4.36 % 4.36 % 5/1/2026 EMCOR property 2,784,868 2,811,539 4.35 % 4.35 % 12/1/2024 Husqvarna property 6,379,182 6,379,182 (5 ) 4.60 % 2/20/2028 AvAir property 19,950,000 19,950,000 3.80 % 3.80 % 8/1/2025 3M property 8,091,800 8,166,000 One-month LIBOR + 2.25% 5.09 % 3/29/2023 Cummins property 8,256,600 8,332,200 One-month LIBOR + 2.25% 5.16 % 4/4/2023 Texas Health property 4,324,160 4,363,203 4.00 % 4.00 % 12/5/2024 Bon Secours property 5,142,425 5,180,552 5.41 % 5.41 % 9/15/2026 Costco property 18,850,000 18,850,000 4.85 % 4.85 % 1/1/2030 Taylor Fresh Foods 12,350,000 12,350,000 3.85 % 3.85 % 11/1/2029 Levins property (6) 2,687,293 2,032,332 3.75 % 3.75 % 2/16/2026 Dollar General Bakersfield property (6) 2,263,573 2,268,922 3.65 % 3.65 % 2/16/2028 Labcorp property (6) 5,374,587 4,020,418 3.75 % 3.75 % 2/16/2026 GSA (MSHA) property (6) 1,743,349 1,752,092 3.65 % 3.65 % 2/16/2026 PreK San Antonio property (7) 4,984,311 5,037,846 4.25 % 4.25 % 12/1/2021 Solar Turbines, Amec Foster, ITW Rippey properties (7) 9,101,005 9,214,700 3.35 % 3.35 % 11/1/2026 Dollar General Big Spring property (7) 593,851 599,756 4.50 % 4.50 % 4/1/2022 Gap property (7) 3,531,585 3,569,990 4.15 % 4.15 % 8/1/2023 L3Harris property (8) 6,300,000 5,185,929 3.35 % 3.35 % 5/21/2031 Sutter Health property (7) 13,739,153 13,879,655 4.50 % 4.50 % 3/9/2024 Walgreens property (7) 3,120,360 3,172,846 4.25 % 4.25 % 7/16/2030 Total mortgage notes payable 182,758,762 176,948,438 Plus unamortized mortgage premium, net (9) 390,426 447,471 Less unamortized deferred financing costs (1,572,582 ) (1,469,991 ) Mortgage notes payable, net $ 181,576,606 $ 175,925,918 (1) Contractual interest rate represents the interest rate in effect under the mortgage note payable as of June 30, 2021. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2021, consisting of the contractual interest rate and the effect of the interest rate swap, if applicable (see Note 8 (2) Reclassified to mortgage note payable at June 30, 2021 from mortgage note payable related to real estate investments held for sale as of December 31, 2020 due to a subsequent decision not to sell the real estate investment property securing the loan which was reclassified back to assets held and used from assets held for sale (see Note 3 for details (3) The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The loans are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the loans, is an event of default under the terms of both loans. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the loans so that the loan to value ratio is no more than 60%. (4) The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate becomes the U.S. Treasury Bill index rate plus 3.25%. (5) The initial contractual interest rate is 4.60% through February 20, 2023 and then the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% through February 20, 2028. (6) The mortgage note as of June 30, 2021 was refinanced on March 5, 2021 with a new lender and terms. The mortgage note as of December 31, 2020 was acquired through the Merger on December 31, 2019. (7) The loan was acquired through the Merger on December 31, 2019. (8) The loans on the Northrop Grumman and L3Harris properties were refinanced during the three months ended June 30, 2021. The initial contractual interest rate is 3.35% through June 1, 2026 and then the Prime Rate in effect as of June 1, 2026 plus 0.25% through May 21, 2031; provided that the second fixed interest rate will not be lower than 3.35% per annum. (9) Represents unamortized net mortgage premium acquired through the Merger. The following summarizes the face value, carrying amount and fair value of the Company’s mortgage notes payable (Level 3 measurement) as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Face Value Carrying Value Fair Value Face value Carrying Value Fair Value Mortgage notes payable $ 182,758,762 $ 181,576,606 $ 184,187,667 $ 176,948,438 $ 175,925,918 $ 177,573,106 Disclosures of the fair values of financial instruments are based on pertinent information available to the Company as of the period end and require a significant amount of judgment. The actual value could be materially different from the Company’s estimate of fair value. Mortgage Notes Payable Related to Real Estate Investments Held For Sale, Net As discussed in detail in Note 3 The following table summarizes the Company's mortgage notes payable related to real estate investments held for sale as of June 30, 2021 and December 31, 2020: Collateral June 30, 2021 December 31, 2020 Dana Property $ 4,422,616 $ — Harley Davidson property — 6,623,346 EcoThrift property — 2,573,509 Total 4,422,616 9,196,855 Plus unamortized mortgage premium — 1,550 Less deferred financing costs (41,190 ) (109,967 ) Mortgage notes payable, net $ 4,381,426 $ 9,088,438 Credit Facility, Net The details of the Company's credit facilities as of June 30, 2021 and December 31, 2020 follow: June 30, 2021 December 31, 2020 Credit facility $ 3,000,000 $ 6,000,000 Less unamortized deferred financing costs (110,697 ) (21,724 ) Credit facility, net $ 2,889,303 $ 5,978,276 On March 29, 2021, the Company entered into a new credit facility with Banc of California (the “Credit Facility”) for an aggregate line of credit of $22,000,000 with a maturity date of March 30, 2023 which replaced the prior credit facility provided by Pacific Mercantile Bank (“PMB”) with a balance outstanding of $6,000,000 as of December 31, 2020. The Company borrowed $6,000,000 under the Credit Facility and repaid the $6,000,000 that was owed to PMB on March 31, 2021. The Credit Facility provides the Company with a $17,000,000 revolving line of credit for real estate acquisitions (including the $6,000,000 borrowed to repay PMB) and an additional $5,000,000 revolving line of credit for working capital. Under the terms of the Credit Facility, the Company will pay a variable rate of interest on outstanding amounts equal to one percentage point over the prime rate published in The Wall Street Journal, provided that the interest rate in effect on any one day shall not be less than 4.75% per annum. The Company paid Banc of California origination fees of $77,000 in connection with the Credit Facility and will pay an unused commitment fee of 0.15% per annum of the unused portion of the Credit Facility, charged quarterly in arrears based on the average unused commitment available under the Credit Facility. The Credit Facility is secured by substantially all of the Company’s tangible and intangible assets, including intellectual property. The Credit Facility requires the Company to maintain a minimum debt service coverage ratio of 1.25 to 1.00 and minimum tangible NAV (as defined in the loan agreement) of $120,000,000, measured quarterly. Mr. Wirta, the Company’s Chairman, has guaranteed the $6,000,000 initial borrowing, which guarantee will expire upon repayment of the $6,000,000 which is due by September 30, 2021. Mr. Wirta has also guaranteed the $5,000,000 revolving line of credit for working capital. On March 29, 2021, the Company entered into an updated indemnification agreement with Mr. Wirta and the Wirta Trust with respect to their guarantees of borrowings under the Credit Facility pursuant to which the Company agreed to indemnify Mr. Wirta and the Wirta Trust if they are required to make payments to Banc of California pursuant to such guarantees. On July 9, 2021, the Company repaid $1,500,000 of the $3,000,000 which was outstanding under its Credit Facility as of June 30, 2021. The Credit Facility contains customary representations, warranties and covenants, which are substantially similar to those in the Company's prior credit facility provided by PMB. The Company’s ability to borrow under the Credit Facility will be subject to its ongoing compliance with various affirmative and negative covenants, including with respect to indebtedness, guaranties, mergers and asset sales, liens, tangible net worth, corporate existence and financial reporting obligations. The Credit Facility also contains customary events of default, including, without limitation, nonpayment of principal, interest, fees or other amounts when due, violation of covenants, breaches of representations or warranties and change of ownership. Upon the occurrence of an event of default, Banc of California may accelerate the repayment of amounts outstanding under the Credit Facility, take possession of any collateral securing the Credit Facility and exercise other remedies subject, in certain instances, to the expiration of an applicable cure period. Short-term Notes Payable In connection with the Self-Management Transaction, the Company assumed from BrixInvest its unsecured short-term notes payable (formerly known as “Convertible Promissory Notes”) of $4,800,000 on December 31, 2019. All of these notes were repaid by April 6, 2020. Economic Relief Notes Payable On April 20, 2020, a subsidiary of the Company entered into a loan agreement and promissory note evidencing an unsecured loan in the aggregate amount of $517,000 made to this subsidiary under the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The PPP is administered by the U.S. Small Business Administration (the “SBA”). Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loan granted under the PPP. In December 2020, the subsidiary of the Company submitted its application for forgiveness of the total amount of the loan to PMB. After PMB’s review, the Company updated its forgiveness application on February 10, 2021, PMB submitted the application to the SBA on February 10, 2021, and on February 16, 2021, the subsidiary of the Company was notified by PMB that the Company's application for forgiveness of the PPP loan had been approved by the SBA in the full amount of $517,000. Accordingly, the forgiveness of the PPP loan was recorded as other income in the first quarter of 2021. Compliance with All Debt Agreements The Company's maximum leverage, as defined and approved by the board of directors, including all of the independent directors, is 55% of the aggregate value of the Company’s tangible assets. The Company uses available leverage based on the relative cost of debt and equity capital, and to address strategic borrowing advantages potentially available to the Company. Pursuant to the terms of mortgage notes payable on certain of the Company’s properties and the Credit Facility, the Company and/or the borrowers are subject to certain financial loan covenants. The Company and/or the borrowers were in compliance with such financial loan covenants as of June 30, 2021. The following summarizes the future principal repayments of the Company’s mortgage notes payable, unsecured credit facility and short-term notes payable as of June 30, 2021: Mortgage Notes Payable Credit Facility Total July through December 2021 $ 6,196,648 $ 3,000,000 $ 9,196,648 2022 11,171,882 — 11,171,882 2023 22,203,304 — 22,203,304 2024 31,562,644 — 31,562,644 2025 28,970,205 — 28,970,205 2026 26,484,106 — 26,484,106 Thereafter 56,169,973 — 56,169,973 Total principal 182,758,762 3,000,000 185,758,762 Plus unamortized mortgage premium, net of unamortized discount 390,426 — 390,426 Less deferred financing costs (1,572,582 ) (110,697 ) (1,683,279 ) Net principal $ 181,576,606 $ 2,889,303 $ 184,465,909 Interest Expense The following is a reconciliation of the components of interest expense for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Mortgage notes payable: Interest expense $ 1,992,812 $ 2,129,678 $ 3,826,636 $ 4,300,183 Amortization of deferred financing costs 103,383 139,600 214,426 258,631 Prepayment penalties — — 23,900 47,000 (Gain) loss on interest rate swaps (1) (92,200 ) 70,985 (420,243 ) 1,395,697 Credit facilities: Interest expense 63,333 166,834 142,085 321,458 Amortization of deferred financing costs 22,139 42,876 43,863 75,336 Other 9,182 8,904 49,118 65,228 Total interest expense $ 2,098,649 $ 2,558,877 $ 3,879,785 $ 6,463,533 (1) Includes unrealized (gain) loss on interest rate swaps of $(90,600) and $7,785 for the three months ended June 30, 2021 and 2020, respectively, and $(517,719) and $1,292,752 for the six months ended June 30, 2021 and 2020, respectively (see Note 8 | NOTE 7. DEBT Mortgage Notes Payable As of December 31, 2020 and 2019, the Company’s mortgage notes payable consisted of the following: Collateral 2020 Principal Balance 2019 Principal Balance Contractual Interest Rate (1) Effective Interest Rate (1) Loan Maturity Accredo/Walgreens properties (8)(11) $ 8,538,000 $ 6,853,442 3.80 % 3.80 % 2025-08-01 Six Dollar General properties 3,747,520 3,819,264 4.69 % 4.69 % 2022-04-01 Dana property 4,466,865 4,551,250 4.56 % 4.56 % 2023-04-01 Northrop Grumman property 5,518,589 5,666,866 4.40 % 4.40 % 2022-07-02 exp US Services property 3,321,931 3,385,353 (3 ) 4.25 % 2024-11-17 Harley Davidson property (12) — 6,748,029 4.25 % 4.25 % 2024-09-01 Wyndham property (2) 5,607,000 5,716,200 One-month LIBOR + 2.05% 4.34 % 2027-06-05 Williams Sonoma property (2) 4,438,200 4,530,600 One-month LIBOR + 2.05% 4.34 % 2022-06-05 Omnicare property 4,193,171 4,273,552 4.36 % 4.36 % 2026-05-01 EMCOR property 2,811,539 2,862,484 4.35 % 4.35 % 2024-12-01 Husqvarna property 6,379,182 6,379,182 (4 ) 4.60 % 2028-02-20 AvAir property (9) 19,950,000 14,575,000 3.80 % 3.80 % 2025-08-01 3M property 8,166,000 8,290,000 One-month LIBOR + 2.25% 5.09 % 2023-03-29 Cummins property 8,332,200 8,458,600 One-month LIBOR + 2.25% 5.16 % 2023-04-04 Former 24 Hour Fitness property (5)(11) — 6,283,898 One-month LIBOR + 4.30% 4.64 % 2049-04-01 Texas Health property 4,363,203 4,400,000 4.00 % 4.00 % 2024-12-05 Bon Secours property 5,180,552 5,250,000 5.41 % 5.41 % 2026-09-15 Costco property 18,850,000 18,850,000 4.85 % 4.85 % 2030-01-01 Taylor Fresh Foods property 12,350,000 12,350,000 3.85 % 3.85 % 2029-11-01 Levins property (6)(13) 2,032,332 2,079,793 One-month LIBOR + 1.93% 3.74 % 2021-01-05 Island Pacific Supermarket property (6)(11) — 1,891,225 One-month LIBOR + 1.93% 3.74 % 2033-05-30 Dollar General Bakersfield property (6)(13) 2,268,922 2,324,338 One-month LIBOR + 1.48% 3.38 % 2021-03-05 Rite Aid property (6)(11) — 3,659,338 One-month LIBOR + 1.50% 3.25 % 2021-05-05 PMI Preclinical property (6)(13) 4,020,418 4,118,613 One-month LIBOR + 1.48% 3.38 % 2021-03-05 EcoThrift property (6)(12) — 2,639,237 One-month LIBOR + 1.21% 2.96 % 2021-07-05 GSA (MSHA) property (6)(13) 1,752,092 1,796,361 One-month LIBOR + 1.25% 3.13 % 2021-08-05 PreK Education property (6) 5,037,846 5,140,343 4.25 % 4.25 % 2021-12-01 Dinan Cars property (6)(7)(11) — 2,710,834 2.76 % 2.76 % 2022-01-05 Solar Turbines, Wood Group, ITW Rippey properties (6) 9,214,700 9,434,692 3.35 % 3.35 % 2026-11-01 Dollar General Big Spring property (6) 599,756 611,161 4.50 % 4.50 % 2022-04-01 Gap property (6) 3,569,990 3,643,166 4.15 % 4.15 % 2023-08-01 L-3 Communications property (6) 5,185,929 5,284,884 4.69 % 4.69 % 2022-04-01 Sutter Health property (6) 13,879,655 14,161,776 4.50 % 4.50 % 2024-03-09 Walgreens Santa Maria property (6)(10) 3,172,846 3,000,000 4.25 % 4.25 % 2030-07-16 Total mortgage notes payable 176,948,438 195,739,481 Plus: unamortized mortgage premium, net (14) 447,471 489,664 Less: unamortized deferred financing costs (1,469,991 ) (2,189,938 ) Mortgage notes payable, net $ 175,925,918 $ 194,039,207 (1) Contractual interest rate represents the interest rate in effect under the mortgage note payable as of December 31, 2020. Effective interest rate is calculated as the actual interest rate in effect as of December 31, 2020, consisting of the contractual interest rate and the effect of the interest rate swap, if applicable (see Note 8 for further information regarding the Company’s derivative instruments). (2) The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The notes are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the notes is an event of default under the terms of both notes. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the notes so that the loan to value ratio is no more than 60%. (3) The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate is the U.S. Treasury Bill index rate plus 3.25%. (4) The initial contractual interest rate is 4.60% through February 20, 2023 and then the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% through February 20, 2028. (5) The interest rate adjusts in the 133rd, 253rd and 313th months. As discussed in Note 4, during the three months ended March 31, 2020, the Company recorded an impairment charge of $5,664,517 related to its investment in the 24 Hour Fitness property in Las Vegas, Nevada due to the substantial impact on fitness centers from the COVID-19 pandemic and the requirement of an indefinite and potentially extended period of store closures and the resulting inability of the tenant to make rent payments. On April 1, 2020, the Company’s special purpose subsidiary initiated negotiations with the lender on the 24 Hour Fitness property regarding the special purpose subsidiary's request for a deferral of mortgage payments until the tenant resumes paying rent. The lender on this property did not agree to provide any substantial mortgage relief to the Company's special purpose subsidiary, but rather agreed to temporarily reduce its $32,000 monthly mortgage payment by $8,000 for four monthly payments from May 2020 through August 2020. On June 15, 2020, the Company received written notice that the lease was formally rejected in connection with 24 Hour Fitness' Chapter 11 bankruptcy proceeding and the premises were surrendered to the Company's subsidiary. The 24 Hour Fitness property was sold on December 15, 2020 as described in Note 4. (6) The loan was acquired through the Merger on December 31, 2019. (7) The Company negotiated a lease termination with Dinan Cars effective January 31, 2020 in exchange for a termination payment from Dinan cars of $783,182 which was used to reduce the principal balance of this mortgage by $650,000 and establish a payment reserve with the remaining $133,182. In connection with the principal prepayment, the Company terminated the related swap agreement on February 4, 2020 at a cost of $47,000. See Note 8 for further discussion of the swap agreement termination and Note 4 for details on the sale of the property on October 28, 2020. (8) The mortgage note with principal balance of $6,853,442 as of December 31, 2019 with an interest rate of 3.95% was refinanced on August 10, 2020 with a new loan for $8,538,000 with an interest rate of 3.80%, secured only by the Accredo property and is scheduled to mature on August 1, 2025. In connection with this refinancing, the mortgage note balance for the Walgreens Stockbridge, Georgia property was fully repaid. (9) The mortgage note with original principal of $14,575,000 as of December 31, 2019 with an effective interest rate of 4.84% was refinanced on July 29, 2020 with a new loan for $19,950,000 with an interest rate of 3.80%, secured only by the AvAir property and which will mature on August 1, 2020. (10) The mortgage note of $3,000,000 as of December 31, 2019 with an interest rate of 7.50% was refinanced on July 22, 2020 for $3,217,500 with an interest rate of 4.25%, and is scheduled to mature on July 16, 2030. (11) The Rite Aid property was sold on August 3, 2020, the Walgreens property on August 27, 2020, the Island Pacific property on September 16, 2020, the Dinan Cars property on October 28, 2020 and the property formerly leased to 24 Hour Fitness was sold on December 15, 2020. (12) The December 31, 2020 principal amount is included in mortgage notes payable related to investments held for sale, net (see details below). (13) The mortgage note was refinanced on March 5, 2021 with a new note bearing an interest rate of 3.65% - 3.75%, with a five (14) Represents unamortized net mortgage premium acquired through the Merger. The following summarizes the face value, carrying amount and fair value of the Company’s mortgage notes payable (Level 3 measurement) as of December 31, 2020 and 2019, respectively: 2020 2019 Face Value Carrying Value Fair Value Face Value Carrying Value Fair Value Mortgage notes payable $ 176,948,438 $ 175,925,918 $ 177,573,106 $ 195,739,481 $ 194,039,207 $ 200,535,334 Disclosures of the fair values of financial instruments is based on pertinent information available to the Company as of the period end and require a significant amount of judgment. The actual value could be materially different from the Company’s estimate of value. Mortgage Notes Payable Related to Real Estate Investments Held For Sale, Net As discussed in detail in Note 4, the Company classified four properties as real estate held for sale as of December 31, 2020. The following table summarizes the Company's mortgage notes payable related to real estate investments held for sale as of December 31, 2020: Collateral December 31, 2020 Harley Davidson property $ 6,623,346 EcoThrift property 2,573,509 Total 9,196,855 Plus unamortized mortgage premium 1,550 Less deferred financing costs (109,967 ) Mortgage notes payable related to real estate investments held for sale, net $ 9,088,438 Unsecured Credit Facility, Net The details of the Company's unsecured credit facility as of December 31, 2020 and 2019 follow: December 31, 2020 2019 Unsecured credit facility $ 6,000,000 $ 7,740,000 Less unamortized deferred financing costs (21,724 ) (90,139 ) Unsecured credit facility, net $ 5,978,276 $ 7,649,861 On December 19, 2019, the Company, NNN LP, the Operating Partnership, Merger Sub, BrixInvest and modiv, LLC (collectively, the “Borrowers”) entered into a Loan and Security Agreement (the “Unsecured Credit Facility”) with Pacific Mercantile Bank (“PMB”). The Unsecured Credit Facility is a line of credit for a maximum principal amount of $12,000,000, and as of December 31, 2020 and 2019, the Unsecured Credit Facility had an outstanding balance of $6,000,000 and $7,740,000, respectively. On March 13, 2020, the Company amended the Unsecured Credit Facility to extend the maturity date of $6,940,000 of the outstanding borrowings under the Unsecured Credit Facility from March 31, 2020 to July 31, 2020, and to extend the maturity date of $3,060,000 of the outstanding borrowings under the Unsecured Credit Facility from May 4, 2020 to August 31, 2020. On August 13, 2020, the Company amended the Unsecured Credit Facility to extend the maturity date of $6,000,000 of the outstanding borrowings under the Unsecured Credit Facility to September 1, 2020 and the maturity date of the remaining $6,000,000 of the outstanding borrowings under the Unsecured Credit Facility to October 15, 2021. The Company repaid $6,000,000 of the $12,000,000 then outstanding borrowings under the Unsecured Credit Facility with proceeds generated by property refinancings and asset sales in August 2020. Under the August 13, 2020 amendment, there is a moratorium on new borrowings under the Unsecured Credit Facility until the remaining $6,000,000 is fully repaid. The Company paid PMB $25,000 in loan extension and modification fees in connection with the August 13, 2020 amendment. In connection with the August 13, 2020 amendment to the Unsecured Credit Facility, the Company's Chairman, Mr. Wirta and the Wirta Family Trust (the “Wirta Trust”) guaranteed the Company’s obligations under the Unsecured Credit Facility. On July 30, 2020, the Company entered into an indemnification agreement with Mr. Wirta and the Wirta Trust with respect to their guarantees of the Company’s $12,000,000 Unsecured Credit Facility with PMB pursuant to which the Company agreed to indemnify Mr. Wirta and the Wirta Trust if they are required to make payments to PMB pursuant to such guarantees. Under the terms of the Unsecured Credit Facility, the Borrowers pay a variable rate of interest on outstanding amounts equal to one percent percentage point over the prime rate published in The Wall Street Journal, provided that the interest rate in effect on any one day shall not be less than 5.50% per annum. The interest rate was 5.50% and 5.75% as of December 31, 2020 and 2019, respectively. The current interest rate is 5.50%, which is the minimum rate. To secure the payment and performance of all obligations under the Unsecured Credit Facility, each of modiv, LLC and BrixInvest granted to PMB a security interest in all of their right, title and interest in their accounts, inventory, equipment, deposit accounts, intellectual property, general intangibles, investment property and other property. On March 29, 2021, the Company entered into a new credit facility with Banc of California (the “New Credit Facility”) for an aggregate line of credit of $22,000,000 with a maturity date of March 30, 2023, which replaced the Unsecured Credit Facility. The Company borrowed $6,000,000 under the New Credit Facility and repaid the $6,000,000 that was owed to PMB on March 31, 2021. The New Credit Facility provides the Company with a $17,000,000 revolving line of credit for real estate acquisitions (including the $6,000,000 borrowed to repay PMB) and an additional $5,000,000 revolving line of credit for working capital. Under the terms of the New Credit Facility, the Company will pay a variable rate of interest on outstanding amounts equal to one percent percentage point over the prime rate published in The Wall Street Journal, provided that the interest rate in effect on any one day shall not be less than 4.75% per annum. The Company paid Banc of California origination fees of $77,000 in connection with the New Credit Facility and will pay an unused commitment fee of 0.15% per annum of the unused portion of the New Credit Facility, charged quarterly in arrears based on the average unused commitment available under the New Credit Facility. The New Credit Facility is secured by substantially all of the Company’s tangible and intangible assets, including intellectual property. The New Credit Facility requires the Company to maintain a minimum debt service coverage ratio of 1.25 to 1.00 and minimum tangible NAV (as defined in the loan agreement) of $120,000,000, measured quarterly. Mr. Wirta, the Company’s Chairman, has guaranteed the $6,000,000 initial borrowing, which guarantee will expire upon repayment of the $6,000,000 which is due by September 30, 2021. Mr. Wirta has also guaranteed the $5,000,000 revolving line of credit for working capital. On March 29, 2021, the Company entered into an updated indemnification agreement with Mr. Wirta and the Wirta Trust with respect to their guarantees of borrowings under the New Credit Facility. The New Credit Facility contains customary representations, warranties and covenants, which are substantially similar to those in the Company's Unsecured Credit Facility. The Company’s ability to borrow under the New Credit Facility will be subject to its ongoing compliance with various affirmative and negative covenants, including with respect to indebtedness, guaranties, mergers and asset sales, liens, corporate existence and financial reporting obligations. The New Credit Facility also contains customary events of default, including, without limitation, nonpayment of principal, interest, fees or other amounts when due, violation of covenants, breaches of representations or warranties and change of ownership. Upon the occurrence of an event of default, Banc of California may accelerate the repayment of amounts outstanding under the New Credit Facility, take possession of any collateral securing the New Credit Facility and exercise other remedies subject, in certain instances, to the expiration of an applicable cure period. Economic Relief Note Payable On April 20, 2020, a subsidiary of the Company entered into a loan agreement and promissory note evidencing an unsecured loan in the aggregate amount of $517,000 made to this subsidiary under the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The PPP is administered by the U.S. Small Business Administration (the “SBA”). Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. Modifications to the PPP by the U.S. Treasury and the Paycheck Protection Program Flexibility Act of 2020 extended the time period for loan forgiveness beyond the original eight-week period to 24 weeks, making it possible for the Company's subsidiary to apply for forgiveness of 100% of its PPP loan prior to December 31, 2020 and the deadline was later extended to February 15, 2021. The PPP loan was made through PMB. In December 2020, the subsidiary of the Company submitted its application for forgiveness of the total amount of the loan to PMB. After PMB’s review, the Company updated its forgiveness application on February 10, 2021, PMB submitted the application to the SBA on February 10, 2021, and on February 16, 2021, the subsidiary of the Company was notified by PMB that the Company's application for forgiveness of the PPP loan had been approved by the SBA. Short-term Notes Payable In connection with the Self-Management Transaction, the Company assumed from BrixInvest its unsecured short-term notes payable (formerly known as “Convertible Promissory Notes”) of $4,800,000 on December 31, 2019. The notes represented private party notes and bore interest at a fixed rate of 8% with all interest and principal due on the maturity date. Except for a portion of six notes from one borrower aggregating $1,024,750 for which the maturity date was extended to April 30, 2020, all notes were repaid prior to March 31, 2020. In exchange for the maturity date extension, the Company agreed to pay 2% of the principal and accrued interest, or $24,845, as an extension fee and agreed to an increase in the interest rate from 8% to 10% per annum during the extension period. The maturity date for the $490,000 of the extended short-term notes was subsequently accelerated to April 6, 2020 in exchange for a $10,000 reduction in the extension fee to $14,845 and these notes were repaid on April 6, 2020. Debt Maturities The following summarizes the future principal repayments of the Company’s mortgage notes payable, unsecured credit facility and short-term notes payable as of December 31, 2020: Mortgage Notes Payable Credit Facility Total 2021 $ 17,091,541 $ 6,000,000 $ 23,091,541 2022 20,873,759 — 20,873,759 2023 25,642,649 — 25,642,649 2024 24,599,437 — 24,599,437 2025 30,781,473 — 30,781,473 Thereafter 57,959,579 — 57,959,579 Total principal 176,948,438 6,000,000 182,948,438 Plus: unamortized mortgage premium, net of discount 447,471 — 447,471 Less: deferred financing costs, net (1,469,991 ) (21,724 ) (1,491,715 ) Total $ 175,925,918 $ 5,978,276 $ 181,904,194 Compliance with All Debt Agreements Pursuant to the terms of mortgage notes payable on certain of the Company’s properties and the Unsecured Credit Facility, the Company and/or the Borrowers are subject to certain financial loan covenants. The Company and/or the Borrowers were in compliance with all terms and conditions of the applicable loan agreements as of December 31, 2020. On March 27, 2020, the Company's conflicts committee and board of directors approved an increase in the Company's maximum leverage from 50% to 55% in order to allow the Company to take advantage of the current low interest rate environment, the relative cost of debt and equity capital, and strategic borrowing advantages potentially available to the Company. Interest Expense The following is a reconciliation of the components of interest expense for the years ended December 31, 2020 and 2019: Years Ended December 31, 2020 2019 Mortgage notes payable: Interest expense $ 8,470,248 $ 5,698,606 Amortization of deferred financing costs 937,564 601,658 Loss on interest rate swaps (1) 1,172,781 843,174 Unsecured credit facility: Interest expense 527,047 190,130 Amortization of deferred financing costs 128,171 36,542 Other loan fees 224,936 12,500 Total interest expense $ 11,460,747 $ 7,382,610 (1) Includes unrealized loss on interest rate swaps of $770,898 and $820,496 for years ended December 31, 2020 and 2019, respectively (see Note 8). Accrued interest payable of $45,636 and $22,282 as of December 31, 2020 and 2019, respectively, represents the unsettled portion of the interest rate swaps for the period from origination of the interest rate swap through the respective balance sheet dates. |
INTEREST RATE SWAP DERIVATIVES
INTEREST RATE SWAP DERIVATIVES (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
INTEREST RATE SWAP DERIVATIVES | NOTE 8. INTEREST RATE SWAP DERIVATIVES The Company, through its limited liability company subsidiaries, entered into interest rate swap agreements with amortizing notional amounts relating to four of its mortgage notes payable. Four additional swap agreements assumed in conjunction with the Merger which were in place as of December 31, 2020 were terminated in due course or were terminated in connection with asset sales and refinancings during the six months ended June 30, 2021. The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks. The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of June 30, 2021 and December 31, 2020, respectively: June 30, 2021 December 31, 2020 Derivative Instruments Number of Instruments Notional Amount (i) Reference Rate (ii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Number of Instruments Notional Amount (i) Reference Rate (iii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Interest Rate Swap Derivatives (iv) 4 $ 26,291,600 One-month LIBOR + applicable spread/Fixed at 4.05%-5.16% 4.55 % 2.6 years 8 $ 36,617,164 One-month LIBOR + applicable spread/Fixed at 3.13%-5.16% 3.35 % 2.2 years • The notional amount of the Company’s swaps decreases each month to correspond to the outstanding principal balance on the related mortgage. The minimum notional amounts (outstanding principal balance at the maturity date) as of June 30, 2021 and December 31, 2020 were $24,935,999 and $34,989,063, respectively. • The reference rate was as of June 30, 2021. • The reference rate was as of December 31, 2020. • The Company terminated swap agreements related to the GSA and Eco-Thrift properties during the six months ended June 30, 2021 and terminated the swap agreement related to the Dinan Cars property mortgage loan during the six months ended June 30, 2020 at aggregate costs of $23,900 and $47,000, respectively (see Note 7 The following table sets forth the fair value of the Company’s derivative instruments (Level 2 measurement), as well as their classification in the unaudited condensed consolidated balance sheets: June 30, 2021 December 31, 2020 Derivative Instrument Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Interest Rate Swaps Asset - Interest rate swap derivatives, at fair value — $ — — $ — Interest Rate Swaps Liability - Interest rate swap derivatives, at fair value 4 $ (1,240,336 ) 8 $ (1,743,889 ) The change in fair value of a derivative instrument that is not designated as a cash flow hedge for financial accounting purposes is recorded as interest expense in the unaudited condensed consolidated statements of operations. None of the Company’s derivatives at June 30, 2021 or December 31, 2020 were designated as hedging instruments; therefore, the net unrealized (gain) loss recognized on interest rate swaps of $(90,600) and $7,785 was recorded as a (decrease) increase in interest expense for the three months ended June 30, 2021 and 2020, respectively, and $(517,719) and $1,292,752 was recorded as an increase in interest expense for the six months ended June 30, 2021 and 2020, respectively. | NOTE 8. INTEREST RATE SWAP DERIVATIVES The Company, through its limited liability company subsidiaries, has entered into interest rate swap agreements with amortizing notional amounts relating to four of its mortgage notes payable and assumed eight additional swap agreements in conjunction with the Merger. During the year ended December 31, 2020, the Company terminated three swap agreements and classified one swap agreement to liabilities related to real estate investments assets held for sale. The reclassified swap agreement corresponds to a mortgage note payable reclassified to mortgage note payable related to a real estate investments asset held for sale as of December 31, 2020. The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks. The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of December 31, 2020 and 2019. December 31, 2020 December 31, 2019 Derivative Instruments Number of Instruments Notional Amount (i) Reference Rate (ii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Number of Instruments Notional Amount (i) Reference Rate (iii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Interest Rate Swap Derivatives 8 $ 36,617,164 One-month LIBOR + applicable spread/Fixed at 3.13%-5.16% 3.35 % 2.2 years 12 $ 48,215,139 One-month LIBOR + applicable spread/Fixed at 2.76%-5.16% 3.87 % 2.9 years (i) The notional amount of the Company’s swaps decreases each month to correspond to the outstanding principal balance on the related mortgage. The minimum notional amounts (outstanding principal balance at the maturity date) as of December 31, 2020 and 2019 were $34,989,063 and $45,514,229, respectively. (ii) The reference rate was as of December 31, 2020. (iii) The reference rate was as of December 31, 2019. The following table sets forth the fair value of the Company’s derivative instruments (Level 2 measurement), as well as their classification in the consolidated balance sheets: December 31, 2020 December 31, 2019 Derivative Instrument Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Interest Rate Swaps Asset - Interest rate swap derivatives, at fair value (*) — $ — 5 $ 34,567 Interest Rate Swaps Liability - Interest rate swap derivatives, at fair value (*) 8 $ (1,743,889 ) 7 $ (1,021,724 ) (*) The fair value of the five interest rate swap derivative assets and three interest rate derivative liabilities assumed from the Merger was $34,567 and $(51,514), respectively, as of December 31, 2019. The change in fair value of a derivative instrument that is not designated as a cash flow hedge for financial accounting purposes is recorded as interest expense in the consolidated statements of operations. None of the Company’s derivatives at December 31, 2020 or 2019 were designated as hedging instruments; therefore, the net unrealized losses recognized on interest rate swaps of $770,898 and $820,496, respectively, were recorded as increases in interest expense for year ended December 31, 2020 and 2019, respectively (see Note 7 |
RELATED PARTY TRANSACTIONS (FY)
RELATED PARTY TRANSACTIONS (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | NOTE 9. RELATED PARTY TRANSACTIONS The Company pays the members of its board of directors who are not executive officers for services rendered through cash payments or by issuing shares of Class C common stock to them. The total fees incurred for board services and paid by the Company for the three and six months ended June 30, 2021 and 2020, is as follows: Three Months Ended June 30, Six Months Ended June 30, Board of Directors Compensation 2021 2020 2021 2020 Cash paid for services rendered $ 60,000 $ — $ 60,000 $ 31,250 Value of shares issued for services rendered 110,000 70,000 180,000 72,083 Total $ 170,000 $ 70,000 $ 240,000 $ 103,333 Number of shares issued for services rendered (*) 4,470 2,272 7,510 2,355 * Adjusted for the 1:3 reverse stock split for the three and six months ended June 30, 2020. As of June 30, 2020, $101,250 was accrued for the second quarter of 2020 services. This amount was paid in July 2020 by paying cash of $31,250 and issuing 4,821 shares of Class C common stock (adjusted for the 1:3 reverse stock split). Effective February 3, 2020, the Company's indirect subsidiary, modiv Advisors, LLC, became the advisor to BRIX REIT, Inc., a REIT originally sponsored by BrixInvest, LLC which also sponsored the Company until the Self-Management Transaction on December 31, 2019. During the three and six months ended June 30, 2021 and 2020, no business transactions occurred between the Company and BRIX REIT, Inc. other than minor expenses advanced. On March 2, 2020, the Company borrowed a total of $4,000,000, secured by mortgages on its two Chevron properties, from the Company's Chairman, Mr. Wirta. The Company's conflicts committee approved the terms of these mortgages which bore interest at an annual rate of 8% and were scheduled to mature on June 2, 2020. On June 1, 2020, the maturity date of these mortgages was extended to September 1, 2020 on the same terms, along with an option for a further extension to November 30, 2020 at the Company’s election prior to August 18, 2020, which the Company elected not to exercise. On July 31, 2020 and August 28, 2020, the mortgages secured by the Chevron San Jose, CA property and Chevron Roseville, CA property, each for $2,000,000, were repaid along with all related accrued interest. Due to Affiliates In connection with the Self-Management Transaction, the Company assumed two notes payable aggregating $630,820 on December 31, 2019 owed to Mr. Wirta, the Company's Chairman. The notes payable had identical terms including a fixed interest rate of 10% paid semi-monthly and a maturity date of April 23, 2020. The remaining principal amount of $218,931 due for each note, aggregating $437,862, was paid on the maturity date. The repayments are reflected in the change in due to affiliates in the accompanying unaudited statement of cash flows for the six months ended June 30, 2020. Related Party Transactions with Unconsolidated Entities The Company's taxable REIT subsidiary serves as the asset manager of the TIC Interest property and earned asset management fees of $47,984 for both the three months ended June 30, 2021 and 2020, respectively, and $95,967 for both the six months ended June 30, 2021 and 2020, respectively. | NOTE 9. RELATED PARTY TRANSACTIONS The Company pays the members of its board of directors who are not executive officers for services rendered through cash payments and by issuing shares of Class C common stock to them. During the years ended December 31, 2020 and 2019, the total fees incurred for board services were $407,083 and $372,500, respectively, of which $21,250 and $57,500 were unpaid as of December 31, 2020 and 2019, respectively. The fees paid in cash were $50,000 and $0 for the years ended December 31, 2020 and 2019, respectively. The fees paid by issuing shares of Class C common stock were $357,083 and $315,000 during the years ended December 31, 2020 and 2019, respectively. For the fees paid in Class C common stock, the Company issued 16,786 and 10,335 shares (adjusted for the 1:3 reverse stock split), respectively. In conjunction with the Self-Management Transaction effective December 31, 2019, the Advisory Agreement was terminated. The Advisory Agreement entitled the Former Advisor to specified fees upon the provision of certain services with regard to investments in real estate and the management of those investments, among other services, and the disposition of investments, as well as entitled the Former Advisor to reimbursement of organizational and offering costs incurred by the Former Advisor or Former Sponsor on behalf of the Company, such as expenses related to the Offerings, and certain costs incurred by the Former Advisor or Former Sponsor in providing services to the Company. In addition, the Former Advisor was entitled to certain other fees, including an incentive fee upon achieving certain performance goals, as detailed in the Advisory Agreement. The Former Sponsor also served as the sponsor for REIT I and BRIX REIT. Effective February 3, 2020, the Company's indirect subsidiary, modiv Advisors, LLC, became the advisor to BRIX REIT. During the years ended December 31, 2020 and 2019, no business transactions occurred between the Company and BRIX REIT, other than minor expenses advanced and, during the year ended December 31, 2019, no business transactions occurred between the Company and REIT I, other than as described below or elsewhere herein, and those relating to the Company’s investment in REIT I before the Merger, as described in Notes 3 5 On March 2, 2020, the Company borrowed a total of $4,000,000, secured by mortgages on its two Chevron properties, from the Company's Chairman, Mr. Wirta. The Company's conflicts committee approved the terms of these mortgages which bore interest at an annual rate of 8% and were scheduled to mature on June 2, 2020. On June 1, 2020, the maturity date of these mortgages was extended to September 1, 2020 on the same terms, along with an option for a further extension to November 30, 2020 at the Company’s election prior to August 18, 2020, which the Company elected not to exercise. On July 31, 2020 and August 28, 2020, the mortgages secured by the Chevron San Jose, CA property and Chevron Roseville, CA property, each for $2,000,000, were repaid along with all related accrued interest. There were no related party costs, including those incurred pursuant to the Advisory Agreement, for the year ended December 31, 2020 and no related party receivable and payable as of December 31, 2020. Summarized below are the related party costs incurred by the Company and related party receivable and payable as of December 31, 2019: Year Ended December 31, 2019 December 31, 2019 Incurred Receivable Payable Expensed: Asset management fees (1) $ 2,777,021 $ — $ — Reimbursable operating expense 528,000 — — Fees to affiliates 3,305,021 — — Property management fees* 224,922 — — Directors and officers insurance and other reimbursements ** 250,892 — — Expense reimbursements from Former Sponsor (2) (332,337 ) — — Capitalized: Acquisition fees 746,459 — — Financing coordination fees 107,500 — — Reimbursable organizational and offering expenses (3) 1,206,881 — — Other: Due from BRIX REIT (4) — 1,378 — Due from TIC — 954 — Notes due to Chairman of the Board — — $ 630,820 $ 2,332 $ 630,820 * Property management fees are classified within property expenses on the consolidated statements of operations. ** Directors and officers insurance and other reimbursements are classified within general and administrative expenses on the consolidated statements of operations. (1) To the extent the Former Advisor elected, in its sole discretion, to defer all or any portion of its monthly asset management fee, the Former Advisor was deemed to have waived, not deferred, that portion up to 0.025% of the total investment value of the Company’s assets. For the year ended December 31, 2019, the Former Advisor did not waive any of the asset management fees. In addition to amounts presented in this table, the Company also incurred asset management fees to the Former Advisor of $191,933 related to the TIC Interest during the year ended December 31, 2019, which amount was reflected as reductions of income recognized from investments in unconsolidated entities (see Note 5 (2) Includes payroll costs related to Company employees that answer questions from prospective stockholders. See “ Investor Relations Payroll Compensation Expense Reimbursements from Former Sponsor (3) Through the termination date on September 30, 2019, the Former Sponsor incurred $9,224,997 of organizational and offering costs on behalf of the Company. However, the Company was only obligated to reimburse the Former Sponsor for such organizational and offering expenses to the extent of 3% of gross offering proceeds. (4) The receivables represent incidental expenses advanced to BRIX REIT, which included unpaid asset management fees of $285,818 due from BRIX REIT, which were fully reserved and the Company agreed to waive in May 2020 given the impact of the COVID-19 pandemic on BRIX REIT. Organizational and Offering Costs The Company was obligated to reimburse the Former Sponsor or its affiliates for organizational and offering expenses (as defined in the Advisory Agreement) paid by the Former Sponsor on behalf of the Company. The Company reimbursed the Former Sponsor for organizational and offering expenses up to 3% of gross offering proceeds. Pursuant to an amendment to the Advisory Agreement dated October 14, 2019, the Company agreed to pay all future organizational and offering costs, and to no longer be reimbursed by the Former Sponsor for investor relations personnel costs after September 30, 2019, in exchange for the Former Sponsor's agreement to terminate its right to receive 3% of all offering proceeds as reimbursement for organizational and offering costs paid by the Former Sponsor. The Former Sponsor and its affiliates were responsible for any organizational and offering expenses to the extent they exceeded 3% of gross offering proceeds through September 30, 2019. Through September 30, 2019, the Former Sponsor had incurred organizational and offering expenses in excess of 3% of the gross offering proceeds received by the Company. Through September 30, 2019, the Company reimbursed the Former Sponsor $5,429,105 in organizational and offering costs, which was the Company’s maximum liability for organizational and offering costs. Investor Relations Compensation Expense Reimbursements from Former Sponsor The Company employs investor personnel to answer inquiries from potential and existing investors regarding the Company and/or its Registered Offerings. The payroll expense associated with the investor relations personnel was reimbursed by the Former Sponsor through September 30, 2019. The Former Sponsor considered these payroll costs to be offering expenses. The amount of payroll expense reimbursements from the Former Sponsor through September 30, 2019 was $373,252, which was partially offset by a refund of employment related legal costs of $40,915. Acquisition Fees The Company paid the Former Advisor an amount equal to 3% of the contract purchase price of the Company’s properties plus additions to real estate investments as acquisition fees. The total of all acquisition fees and acquisition expenses was required to be reasonable and was not to exceed 6% of the contract price of the property. However, a majority of the directors (including a majority of the independent directors) not otherwise interested in the transaction had the authority to approve fees in excess of these limits if they determined the transaction to be commercially competitive, fair and reasonable to the Company. Acquisition fees incurred were $746,459 during the year ended December 31, 2019. Asset Management Fees The Company paid the Former Advisor, as compensation for the advisory services rendered to the Company, a monthly fee in an amount equal to 0.1% of the total investment value, as defined in the Advisory Agreement (the “Asset Management Fee”), as of the end of the preceding month plus the book value of any properties acquired during the month pro-rated based on the number of days owned. The Asset Management Fee was payable monthly on the last business day of such month. The Asset Management Fee, which was required to be reasonable in the determination of the Company’s independent directors at least annually, was to be taken or waived, in whole or in part as to any year, in the sole discretion of the Former Advisor. All or any portion of the Asset Management Fee not paid as to any fiscal year was allowed to be deferred without interest and paid in such other fiscal year as the Former Advisor determined. Additionally, to the extent the Former Advisor elected, in its sole discretion, to defer all or any portion of its monthly Asset Management Fee, the Former Advisor was deemed to have waived, not deferred, that portion of its monthly Asset Management Fee that was up to 0.025% of the total investment value of the Company’s assets. The total amount of Asset Management Fees incurred during the year ended December 31, 2019 was $2,777,021, of which none was waived. Financing Coordination Fee Other than with respect to any mortgage or other financing related to a property concurrent with its acquisition, if the Former Advisor or an affiliate provided a substantial amount of the services (as determined by a majority of the Company’s independent directors) in connection with the post-acquisition financing or refinancing of any debt that the Company obtained relative to a property, then the Company paid to the Former Advisor or such affiliate a financing coordination fee equal to 1% of the amount of such financing. The Company incurred and paid $107,500 of financing coordination fees related to two loans during the year ended December 31, 2019. Property Management Fees If the Former Advisor or any of its affiliates provided a substantial amount of the property management services (as determined by a majority of the Company’s independent directors) for the Company’s properties, then the Company paid the Former Advisor or such affiliate a property management fee equal to 1.5% of gross revenues from the properties managed. The Company also reimbursed the Former Advisor and any of its affiliates for property-level expenses that such tenant paid or incurred to the Company, including salaries, bonuses and benefits of persons employed by the Former Advisor, except for the salaries, bonuses and benefits of persons who also served as one of the Company’s executive officers. The Former Advisor or its affiliate were entitled to subcontract the performance of its property management duties to third parties and pay all or a portion of its property management fee to the third parties with whom it contracted for these services. The Former Advisor provided property management services for 10 properties in the Company's portfolio during the year ended December 31, 2019 for which the Company incurred and paid $224,922 of property management fees. Disposition Fees For substantial assistance in connection with the sale of properties, the Company paid the Former Advisor or one of its affiliates 3.0% of the contract sales price, as defined in the Advisory Agreement, of each property sold; provided, however, that if, in connection with such disposition, commissions were paid to third parties unaffiliated with the Former Advisor or its affiliates, the disposition fees paid to the Former Advisor, the Former Sponsor, their affiliates and unaffiliated third parties could not exceed the lesser of the competitive real estate commission or 6% of the contract sales price. There were no disposition fees incurred during the year ended December 31, 2019. Subordinated Participation Fees The Company incurred a subordinated participation fee calculated as of December 31 of each year through 2018, payable to the Former Advisor or an affiliate thereof, which was paid (if at all) in the immediately following January. The subordinated participation fee was only due if the Preferred Return, as defined in the Advisory Agreement, was achieved and was equal to the sum of (using terms as defined in the Advisory Agreement): (i) 30% of the product of (a) the difference of (x) the Preliminary NAV per share minus (y) the Highest Prior NAV per share, multiplied by (b) the number of shares outstanding as of December 31 of the relevant annual period, but only if this resulted in a positive number, plus (ii) 30% o The Company calculated a subordinated participation fee of $839,050 which was accrued as of December 31, 2018 and paid in cash during the three months ended March 31, 2019. On August 9, 2019, the Advisory Agreement was amended to eliminate the Subordinated Participation Fee. Leasing Commission Fees If a property or properties of the Company became unleased and the Former Advisor or any of its affiliates provided a substantial amount of the services (as determined by a majority of the Company’s independent directors) in connection with the Company’s leasing of a property or properties to unaffiliated third parties, then the Company paid the Former Advisor or such affiliate leasing commissions equal to 6% of the rents due pursuant to such lease for the first ten years of the lease term; provided, however (i) if the term of the lease was less than ten years, such commission percentage was applied to the full term of the lease and (ii) any rents due under a renewal of a lease of an existing tenant upon expiration of the initial lease agreement (including any extensions provided for thereunder) accrued a commission of 3% in lieu of the aforementioned 6% commission. There were no leasing commission fees incurred during the year ended December 31, 2019. Other Operating Expense Reimbursement Under the Company's charter, prior to December 31, 2019, total operating expenses of the Company were limited to the greater of 2% of average invested assets or 25% of net income for the four most recently completed fiscal quarters (the “2%/25% Limitation”). If the Company exceeded the 2%/25% Limitation, the Former Advisor was required to reimburse the Company the amount by which the aggregate total operating expenses exceeded the limitation, or the Company was required to obtain a waiver from the Company's conflicts committee. For purposes of determining the 2%/25% Limitation amount, “average invested assets” meant the average monthly book value of the Company’s assets invested directly or indirectly in equity interests and loans secured by real estate during the 12-month period before deducting depreciation, reserves for bad debts or other non-cash reserves. “Total operating expenses” meant all expenses paid or incurred by the Company, as determined by GAAP, that were in any way related to the Company’s operation including asset management fees, but excluding (a) the expenses of raising capital such as organizational and offering expenses, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, listing and registration of shares of the Company’s common stock; (b) interest payments; (c) taxes; (d) non-cash expenditures such as depreciation, amortization and bad debt reserves; (e) reasonable incentive fees based upon increases in NAV per share; (f) acquisition fees and acquisition expenses (including expenses, relating to potential investments that the Company does not close); and (g) disposition fees on the sale of real property and other expenses connected with the acquisition, disposition and ownership of real estate interests or other property (other than disposition fees on the sale of assets other than real property), including the costs of insurance premiums, legal services, maintenance, repair and improvement of real property. The total reimbursable operating expenses incurred was $528,000 during the year ended December 31, 2019. The Company was in compliance with the 2%/25% Limitation for operating expenses for the four fiscal quarters ended December 31, 2019. Due to Affiliates In connection with the Self-Management Transaction, the Company assumed two notes payable aggregating $630,820 on December 31, 2019 owed to Mr. Wirta, the Company's Chairman, which were presented under due to affiliates in the Company's consolidated balance sheet as of December 31, 2019. The notes payable had identical terms including a fixed interest rate of 10% paid semi-monthly and a maturity date of April 23, 2020. The remaining principal amount of $218,931 due for each note, aggregating $437,862, was paid on the maturity date. Related Party Transactions with Unconsolidated Entities The Company’s portion of asset management fees paid to a subsidiary of the Company in 2020 and the Former Advisor in 2019 relating to the TIC Interest for the years ended December 31, 2020 and 2019 was as follows: Years Ended December 31, 2020 2019 Asset management fees $ 191,933 $ 191,907 The advisory agreement with the entity that owns the TIC Interest property was assigned to the Company's taxable REIT subsidiary following the Self-Management Transaction and the Company earns a monthly management fee equal to 0.1% of the total investment value of the property from this entity, which resulted in a fee of $263,971 for the year ended December 31, 2020, of which the Company's portion was $191,933. The Company’s portion of Former Advisor fees paid relating to REIT I for the year ended December 31, 2019 was as follows: Year Ended December 31, 2019 Expensed: Asset management fees $ 34,968 Other 16,800 Total $ 51,768 Acquisition of Intellectual Property From the Former Sponsor and Website Hosting Agreement With BRIX REIT Effective October 28, 2019, the Operating Partnership acquired certain software and related assets of the Former Sponsor in order for the Operating Partnership to develop and operate a new online platform for BRIX REIT. The Operating Partnership entered into a website hosting services agreement with BRIX REIT effective October 28, 2019, pursuant to which the Operating Partnership hosted the online platform at http://www.brix-reit.com |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | NOTE 10. COMMITMENTS AND CONTINGENCIES Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its 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 property could result in future environmental liabilities. Tenant Improvements Pursuant to lease agreements, as of June 30, 2021 and December 31, 2020, the Company had obligations to pay $189,136 and $60,598, respectively, for on-site and tenant improvements to be incurred by tenants. As of June 30, 2021 and December 31, 2020, the Company had $2,400,000 and $92,684 of restricted cash held to fund other building improvements, tenant improvements and leasing commissions. Redemption of Common Stock The Company has a share repurchase program that enables qualifying stockholders to sell their stock to the Company in limited circumstances. The maximum amount of common stock that may be repurchased per month is limited to no more than 2% of the Company’s most recently determined aggregate NAV. Repurchases for any calendar quarter are limited to no more than 5% of its most recently determined aggregate NAV. The foregoing repurchase limitations are based on “net repurchases” during a quarter or month, as applicable. Thus, for any given calendar quarter or month, the maximum amount of repurchases during that quarter or month will be equal to (1) 5% or 2% (as applicable) of the Company’s most recently determined aggregate NAV, plus (2) proceeds from sales of new shares in the Registered Offerings and Class S Offering (including purchases pursuant to its Registered DRP Offering) since the beginning of a current calendar quarter or month, less (3) repurchase proceeds paid since the beginning of the current calendar quarter or month. The Company has the discretion to repurchase fewer shares than have been requested to be repurchased in a particular month or quarter, or to repurchase no shares at all, in the event that it lacks readily available funds to do so due to market conditions beyond the Company’s control, it needs to maintain liquidity for its operations, or because the Company determines that investing in real property or other investments is a better use of its capital than repurchasing its shares. In the event that the Company repurchases some but not all of the shares submitted for repurchase in a given period, shares submitted for repurchase during such period will be repurchased on a pro-rata basis, subject to any Extraordinary Circumstance Repurchase (defined below). The Company has the discretion, but not the obligation, under extraordinary market or economic circumstances, to make a special repurchase in equal, nominal quantities of shares from all stockholders who have submitted share repurchase requests during the period (“Extraordinary Circumstance Repurchase”). Extraordinary Circumstance Repurchases will precede any pro rata share repurchases that may be made during the period. In addition, the Company’s board of directors may amend, suspend or terminate the share repurchase program without stockholder approval upon 10 days’ notice if its directors believe such action is in the Company and its stockholders’ best interests. The Company’s board of directors may also amend, suspend or terminate the share repurchase program due to changes in law or regulation, or if the board of directors becomes aware of undisclosed material information that the Company believes should be publicly disclosed before shares are repurchased. Legal Matters From time-to-time, the Company may become party to legal proceedings that arise in the ordinary course of its business. Other than as described below, the Company is not a party to any legal proceeding, nor is the Company aware of any pending or threatened litigation that could have a material adverse effect on the Company’s business, operating results, cash flows or financial condition should such litigation be resolved unfavorably. On September 18, 2019, a lawsuit was filed in the Superior Court of the State of California, County of Los Angeles (the “State Court Action”), against the former advisor by “John Doe,” a fictitiously-named individual who was one of the former advisor's former employees. The former advisor understands that the plaintiff was its former Chief Digital Officer, who along with six other employees was subject to a reduction in force, communicated to all in advance, that was a result of financial constraints of the former advisor which necessitated the elimination of numerous job positions in May 2019. In the lawsuit, the former employee claims he was terminated in retaliation for his purported whistleblowing with respect to alleged misleading statements made by the former advisor and fraudulently induced arbitration requirements applicable to employees and investors. The complaint seeks to enjoin and rescind the enforcement of the arbitration agreement signed by the former employee and the arbitration requirements related to this complaint. In September 2020, the State Court Action was removed to the United States District Court, Central District of California (“U.S. District Court”). On February 11, 2021, the U.S. District Court ruled in favor of the former advisor’s motion to compel arbitration and to stay the claim before the U.S. District Court and denied plaintiff’s motions to enjoin the arbitration and file a third amended complaint. On March 19, 2021, plaintiff filed a motion for leave to file a third amended complaint and lift the stay, in which he sought to dismiss his first two causes of action, and also sought to lift the stay imposed by the U.S. District Court's February 11, 2021 order. On April 15, 2021, the U.S. District Court granted plaintiff’s motion allowing the third amended complaint to be filed and on May 12, 2021, the U.S. District Court granted plaintiff’s motion to lift the stay. The Company is not a party to the lawsuit. The former advisor has denied all the accusations and allegations in the complaint and the former advisor intends to vigorously defend against the claims made by the plaintiff. | NOTE 10. COMMITMENTS AND CONTINGENCIES Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its 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. Tenant Improvements Pursuant to lease agreements, as of December 31, 2020 and 2019, the Company had obligations to pay $60,598 and $98,329, respectively, for in site and tenant improvements to be incurred by tenants, including a 72.7% share of the tenant improvements for the Santa Clara, California TIC Interest. As of both December 31, 2020 and 2019, the Company had $92,684 of restricted cash held to fund other tenant improvements. Operating Lease As a result of the Self-Management Transaction, on December 31, 2019, a subsidiary of the Company assumed the operating lease of the corporate office in Costa Mesa, California from BrixInvest. The office lease had a remaining term of 4.5 years, ending on June 30, 2024. During the second quarter of 2020, the Company's subsidiary re-evaluated its physical office space requirement given the effect of the COVID-19 pandemic, commenced negotiations with the landlord in May 2020 and vacated the premises to the landlord on June 1, 2020. Effective October 29, 2020, the Company’s subsidiary entered into a lease amendment for early termination of the lease in exchange for a lease termination fee of $1,350,000 and as such, the Company derecognized the right of use asset and the corresponding lease liability as of September 30, 2020. The termination fee was paid by the Company's subsidiary by releasing its $135,544 security deposit and a cash payment of $1,214,456. As a result of this transaction, the operating lease liability of $2,087,713 and the amount of accrued but unpaid lease payments of $242,216 which were previously included in accounts payable, accrued and other liabilities were partially offset by the elimination of the right of use asset of $2,019,577 and the release of the security deposit, resulting in a lease termination expense of $1,039,648 which is included in other expense in the accompanying statement of operations for the year ended December 31, 2020. Because the rate implicit in the subsidiary's lease was not readily determinable, the Company used an incremental borrowing rate to account for the lease as of December 31, 2019. In determining the Company's incremental borrowing rate for the lease, the Company considered the rate on its unsecured borrowings, observable risk-free interest rates and credit spreads correlating to the Company's creditworthiness and the term of the subsidiary's lease agreement. The discount rate used was 5.75%. Redemption of Common Stock The Company has a share repurchase program that enables qualifying stockholders to sell their stock to the Company in limited circumstances. The maximum amount of common stock that may be repurchased per month is limited to no more than 2% of the Company’s most recently determined aggregate NAV. Repurchases for any calendar quarter are limited to no more than 5% of its most recently determined aggregate NAV. The foregoing repurchase limitations are based on “net repurchases” during a quarter or month, as applicable. Thus, for any given calendar quarter or month, the maximum amount of repurchases during that quarter or month will be equal to (1) 5% or 2% (as applicable) of the Company’s most recently determined aggregate NAV, plus (2) proceeds from sales of new shares in the current offering (including purchases pursuant to its Registered DRP Offering) since the beginning of a current calendar quarter or month, less (3) repurchase proceeds paid since the beginning of the current calendar quarter or month. As of and , the Company's share repurchases payable were $2,980,559 and $0, respectively. In connection with the Company's entry into the Merger Agreement, the Company's share repurchase program was temporarily suspended on September 19, 2019 and was reopened on January 2, 2020. The Company has the discretion to repurchase fewer shares than have been requested to be repurchased in a particular month or quarter, or to repurchase no shares at all, in the event that it lacks readily available funds to do so due to market conditions beyond the Company’s control, its need to maintain liquidity for its operations or because the Company determines that investing in real property or other illiquid investments is a better use of its capital than repurchasing its shares. In the event that the Company repurchases some but not all of the shares submitted for repurchase in a given period, shares submitted for repurchase during such period will be repurchased on a pro-rata basis, subject to any Extraordinary Circumstance Repurchase (defined below). The Company has the discretion, but not the obligation, under extraordinary market or economic circumstances, to make a special repurchase in equal, nominal quantities of shares from all stockholders who have submitted share repurchase requests during the period (“Extraordinary Circumstance Repurchase”). Extraordinary Circumstance Repurchases will precede any pro rata share repurchases that may be made during the period. In addition, the Company’s board of directors may amend, suspend or terminate the share repurchase program without stockholder approval upon 10 days’ notice if its directors believe such action is in the Company's and its stockholders’ best interests. The Company’s board of directors may also amend, suspend or terminate the share repurchase program due to changes in law or regulation, or if the board of directors becomes aware of undisclosed material information that the Company believes should be publicly disclosed before shares are repurchased. Legal Matters From time-to-time, the Company may become party to legal proceedings that arise in the ordinary course of its business. Other than as described below, the Company is not a party to any legal proceeding, nor is the Company aware of any pending or threatened litigation that could have a material adverse effect on the Company’s business, operating results, cash flows or financial condition should such litigation be resolved unfavorably. On September 18, 2019, a lawsuit was filed in the Superior Court of the State of California, County of Los Angeles (the “State Court Action”), against the Former Advisor by “John Doe,” a fictitiously-named individual who was one of the Former Advisor's former employees. The Former Advisor understands that the plaintiff was its former Chief Digital Officer, who along with six other employees was subject to a reduction in force, communicated to all in advance, that was a result of financial constraints of the Former Advisor which necessitated the elimination of numerous job positions in May 2019. In the lawsuit, the former employee claims he was terminated in retaliation for his purported whistleblowing with respect to alleged misleading statements made by the Former Advisor and fraudulently induced arbitration requirements applicable to employees and investors. The complaint seeks to enjoin and rescind the enforcement of the arbitration agreement signed by the former employee and the arbitration requirements related to this complaint. In September 2020, the State Court Action was removed to the United States District Court, Central District of California (“U.S. District Court”). On February 11, 2021, the U.S. District Court ruled in favor of the Former Advisor’s motion to compel arbitration and denied plaintiff’s motions to enjoin the arbitration and file a third amended complaint. The Company is not a party to the lawsuit. The Former Advisor has denied all the accusations and allegations in the complaint and the Former Advisor intends to vigorously defend against the claims made by the plaintiff. |
SUBSEQUENT EVENTS (FY)
SUBSEQUENT EVENTS (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | NOTE 12. SUBSEQUENT EVENTS The Company evaluates subsequent events until the date the unaudited condensed consolidated financial statements are issued. Significant subsequent events are described below: Distributions The Company paid the June 2021 distribution of $650,167 on July 26, 2021, based on the daily distribution rate of $ 0.00287670 1.05 24.61 Redeemable Common Stock Subsequent to June 30, 2021, the Company redeemed 83,834 shares of Class C common stock for $2,059,527 and no shares of Class S common stock. Updated Estimated NAV Per Share On August 4, 2021, the Company’s board of directors approved and established an updated estimated NAV per share of the Company’s Class C common stock and Class S common stock of $ 26.05 Sale of Real Estate Investment On July 7, 2021, the Company completed the sale of its Cedar Park, Texas retail property that was leased to Dana Incorporated, but unoccupied, for $10,000,000, which generated net proceeds of $4,975,334 after repayment of the existing mortgage, commissions and closing costs. Repayment of Borrowings Under Credit Facility On July 9, 2021, the Company repaid $1,500,000 of the $3,000,000 that was outstanding under its Credit Facility as of June 30, 2021. As a result of this repayment, the Company has availability to draw up to $15,500,000 under its Credit Facility to fund potential real estate acquisitions, along with additional availability of up to $5,000,000 for working capital. Real Estate Acquisition On July 26, 2021, the Company, through a wholly-owned subsidiary of the Operating Partnership, completed the acquisition of an approximately 3,800-square-foot restaurant property leased to Raising Cane’s located in San Antonio, Texas. The restaurant property, which also features a drive-thru, is subject to a triple-net lease whereby the tenant is responsible for all property expenses including taxes, insurance and maintenance. The lease expires on February 28, 2028, with five, 5-year lease renewal options which allows Raising Cane’s to extend the term of its lease for up to 25 additional years. The property is expected to generate $1,600,672 in total rental revenue over the course of its remaining lease term. The contract purchase price for the property is $3,607,424 which was funded with the Company’s available cash on hand. The seller of the property was not affiliated with the Company or its affiliates. | NOTE 11. SUBSEQUENT EVENTS The Company evaluates subsequent events until the date the consolidated financial statements are issued. Significant subsequent events are described below: Name Change of the Company Effective January 22, 2021, the Company filed Articles of Amendment in the State of Maryland solely to change the Company’s name to Modiv Inc. and also amended and restated its Bylaws solely to reflect such name change. Reverse Stock Split Effective February 1, 2021, with the authorization of the board of directors, the Company filed Articles of Amendment to the Company’s charter in the State of Maryland in order to effect a 1: 3 Termination of Public Offering Effective January 27, 2021, the Company, with the approval of the board of directors, terminated the Company’s public offering of up to $800,000,000 of the Company’s shares which was being conducted pursuant to the Follow-on Offering. In connection with the termination of the Follow-on Offering, the Company stopped accepting investor subscriptions on January 22, 2021. As of January 27, 2021, the Company had $600,547,672 of unsold shares in the Follow-on Offering, which were deregistered with the SEC. 2021 DRP Offering On January 22, 2021, the Company filed a registration statement on Form S-3 (File No. 333-252321) to register a maximum of $100,000,000 of additional shares of Class C common stock to be issued pursuant to the amended and restated DRP. The Company commenced offering shares of Class C common stock pursuant to the 2021 DRP Offering upon termination of the Follow-on Offering. Offering Status Through February 28, 2021, the Company had sold 6,748,695 shares (adjusted for the 1:3 reverse stock split) of Class C common stock for aggregate gross offering proceeds of $199,861,618, which included 817,355 shares (adjusted for the 1:3 reverse stock split) of Class C common stock sold under its DRP for gross proceeds of $23,093,575. As of February 28, 2021, the Company had sold 63,876 shares (adjusted for the 1:3 reverse stock split) of Class S common stock in the Class S Offering, for aggregate gross offering proceeds of $1,935,770, which included 2,172 shares (adjusted for the 1:3 reverse stock split) of Class S common stock sold under its DRP for gross proceeds of $58,606. Distributions The Company paid the December 2020 distribution of $705,596 on January 22, 2021, based on the daily distribution rate of $ 0.00287670 1.05 21.01 The Company paid the January 2021 distribution of $695,768 on February 25, 2021, based on the daily distribution rate of $ 0.00287670 1.05 21.01 The Company paid the February 2021 distribution of $620,788 on March 25, 2021, based on the daily distribution rate of $ 0.00287670 1.05 23.03 On March 25, 2021, the Company’s board of directors declared distributions based on daily record dates for the period April 1, 2021 through June 30, 2021 at rate of $ 0.00287670 1.05 23.03 Redeemable Common Stock From January 1, 2021 to March 3, 2021, the Company repurchased 481,939 shares (adjusted for the 1:3 reverse stock split) of Class C common stock for $10,375,064 and no shares of Class S common stock. Extension of Leases Effective January 21, 2021, the Company extended the lease terms of its Dollar General properties located in Lakeside, Ohio and in Castalia, Ohio from June 1, 2030 to May 31, 2035 for minimum annual rents increasing annually in exchange for one month of free rent, which amounted to $6,753 and $6,610 for the Lakeside and Castalia properties, respectively. Effective March 1, 2021, the Company also extended the lease term of its Northrop Grumman property located in Melbourne, Florida from May 31, 2021 to May 31, 2026 for minimum annual rents increasing annually. The Company paid a leasing commission of $128,538 to the tenants' brokers and $128,538 to Northrop Grumman as a credit for additional tenant improvement costs in connection with this extension of the Northrop Grumman lease term. The Company also agreed to provide tenant improvements (including roof, HVAC and other improvements) that it estimates will cost approximately $1,150,000 in connection with this extension. Sale of Real Estate Investments On January 7, 2021, the Company completed the sale of its Roseville, California retail property which was leased to the operator of a Chevron gas station for $4,050,000, which generated net proceeds of $3,914,909 after payment of commissions and closing costs. On January 29, 2021, the Company completed the sale of its Sacramento, California retail property which was leased to EcoThrift for $5,375,300, which generated net proceeds of $2,684,225 after repayment of the existing mortgage, commissions and closing costs. On February 12, 2021, the Company completed the sale of its San Jose, California retail property which was leased to the operator of a Chevron gas station for $4,288,888, which generated net proceeds of $4,055,657 after payment of commissions and closing costs. Mortgage Notes Payable On March 5, 2021, the Company refinanced the following mortgage notes: December 31, 2020 New Original New Properties Principal Amount Principal Amount Prior Interest Rate New Interest Rate Maturity Date Maturity Date Levins $ 2,032,332 $ 2,700,000 3.74 % 3.75 % 3/5/2021 3/16/2026 Dollar General Bakersfield $ 2,268,922 $ 2,280,000 3.38 % 3.65 % 3/5/2021 3/16/2028 PMI Preclinical $ 4,020,418 $ 5,400,000 3.38 % 3.75 % 3/5/2021 3/16/2026 GSA (MSHA) $ 1,752,092 $ 1,756,000 3.13 % 3.65 % 8/5/2021 3/16/2026 The maturity date for the loan on the Levins property was extended from its original date of January 5, 2021 to March 5, 2021 prior to the refinancing described above. Termination of Swap Agreement On March 5, 2021, the Company terminated the swap agreement related to the Company's GSA (MSHA) property mortgage loan at a cost of $9,900 in connection with the refinancing of this property described above. New Revolving Credit Facility On March 29, 2021, the Company entered into the New Credit Facility for an aggregate line of credit of $22,000,000 with a maturity date of March 30, 2023 which replaced the Unsecured Credit Facility. The Company borrowed $6,000,000 under the New Credit Facility and repaid the $6,000,000 that was owed to PMB on March 31, 2021. The New Credit Facility provides the Company with a $17,000,000 revolving line of credit for real estate acquisitions (including the $6,000,000 borrowed to repay PMB) and an additional $5,000,000 revolving line of credit for working capital. Under the terms of the New Credit Facility, the Company will pay a variable rate of interest on outstanding amounts equal to one percentage point over the prime rate published in The Wall Street Journal, provided that the interest rate in effect on any one day shall not be less than 4.75% per annum. The Company paid Banc of California origination fees of $77,000 in connection with the New Credit Facility and will pay an unused commitment fee of 0.15% per annum of the unused portion of the New Credit Facility, charged quarterly in arrears based on the average unused commitment available under the New Credit Facility. The New Credit Facility is secured by substantially all of the Company’s tangible and intangible assets, including intellectual property. The New Credit Facility requires the Company to maintain a minimum debt service coverage ratio of 1.25 to 1.00 and minimum tangible NAV (as defined in the loan agreement) of $120,000,000, measured quarterly. Mr. Wirta, the Company’s Chairman, has guaranteed the $6,000,000 initial borrowing, which guarantee will expire upon repayment of the $6,000,000 which is due by September 30, 2021. Mr. Wirta has also guaranteed the $5,000,000 revolving line of credit for working capital. On March 29, 2021, the Company entered into an updated indemnification agreement with Mr. Wirta and the Wirta Trust with respect to their guarantees of borrowings under the New Credit Facility. Distribution Reinvestment Plan Amendment On January 22, 2021, with the authorization of the board of directors, the Company amended and restated its DRP with respect to the Company's shares of Class C common stock in order to reflect its name change to Modiv Inc. and to remove the ability of the Company’s stockholders to elect to reinvest only a portion of their cash distributions in shares through the DRP so that investors who elect to participate in the amended and restated DRP must reinvest all cash distributions in shares. In addition, the amended and restated DRP provides for determinations by the board of directors of the NAV per share more frequently than annually. The amended and restated DRP was effective with respect to distributions paid in February 2021. Updated Estimated NAV Per Share On January 27, 2021, the Company’s board of directors approved and established an updated estimated NAV per share of the Company’s Class C common stock and Class S common stock of $ 23.03 Share Repurchase Programs On February 1, 2021, with the authorization of the board of directors, the Company amended and restated its Class C SRP in order to (i) revise the minimum holding period before a stockholder may participate in the Class C SRP from 90 days to six months, (ii) revise the limitations on the share repurchase price so that shares held for less than two years will be repurchased at 98% of the most recently published NAV per share and shares held for at least two years will be repurchased at 100% of the most recently published NAV per share (as opposed to a repurchase price of 97% of the most recently published NAV per share for shares held less than one year, 98% of the most recently published NAV per share for shares held for more than one year but less than two years, 99% of the most recently published NAV per share for shares held for more than two years but less than three years, and 100% of the most recently published NAV per share for shares held for at least three years), (iii) increase the minimum share value (based on the most recently published NAV per share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum share value, from $500 to $1,000, and (iv) include language that provides that the Class C SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. The minimum holding period before a stockholder may participate in the Class C SRP for shares purchased prior to February 1, 2021 will remain at 90 days. With the authorization of the board of directors, the Company also amended and restated its Class S SRP on February 1, 2021 in order to (i) allow the Company to waive the minimum one year holding period before a holder of Class S shares may participate in the Class S SRP in the event of extraordinary circumstances which would place undue hardship on a stockholder, (ii) increase the minimum Class S share value (based on the most recently published NAV per Class S share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum Class S share value, from $500 to $1,000, and (iii) include language that provides that the Class S SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. Grant of Partnership Interest to Employees On January 25, 2021, the compensation committee of the Company's board of directors recommended, and the board of directors approved, the grant of 120,000 Class R OP Units to Mr. Halfacre for his 2020 compensation and 512,000 Class R OP Units to Mr. Halfacre as equity incentive compensation for the next three years, and the grant of 100,000 Class R OP Units to Mr. Pacini as equity incentive compensation for the next three years. An additional 348,000 Class R OP Units were granted to the rest of the employees of the Company. The Class R OP Units vest on March 31, 2024 and are then convertible into Class C OP Units at a conversion ratio of 1 2.5 1.05 Broker-Dealer Effective January 31, 2021, the Company and NCPS terminated their Dealer Manager Agreement, dated January 2, 2020, pursuant to which NCPS had agreed to act as dealer manager in connection with the Follow-on Offering. Effective January 31, 2021, NCPS and the Company entered into a new Dealer Manager Agreement pursuant to which NCPS has agreed to act as dealer manager in connection with investments in the Company by accredited investors. Special Purpose Acquisition Company To further the Company’s mission of being the leading provider of alternative real estate-related products, and to capitalize on the current opportunity in today’s public marketplace, the Company is sponsoring MACS publicly filed its registration statement on Form S-1 with the SEC on March 24, 2021 and plans to raise $100,000,000, or $115,000,000 if the over-allotment option is exercised, in its IPO. In connection with the public filing of the Form S-1, MVF deposited $4,500,000 in escrow with the attorneys for MACS. The $4,500,000 will be released from escrow upon completion of the IPO and used to purchase 9,000,000 warrants to purchase additional shares of MACS. Each warrant has the right to purchase 0.5 share of MACS common stock and can be exercised at a strike price of $ 11.50 MACS was formed for the purpose of entering into a business combination with one or more businesses or entities, and intends to focus on targets located in North America that are focused on fintech and proptech, with a focus on companies whose core purpose is related to the real estate industry. Within those parameters, MACS intends to pursue a business combination with companies that use technology driven platforms and solutions to disrupt or revolutionize the real estate capital markets, transactional marketplaces and investment management industry. |
Schedule III Real Estate Assets
Schedule III Real Estate Assets and Accumulated Depreciation and Amortization (FY) | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III Real Estate Assets and Accumulated Depreciation and Amortization | MODIV INC. (f/k/a RW HOLDINGS NNN REIT, INC.) Schedule III Real Estate Assets and Accumulated Depreciation and Amortization December 31, 2020 Initial Cost to Company Gross Amount at Which Carried at Close of Period Description Location Original Year of Construction Date Acquired Encumbrances Land Buildings & Improvements (1) Total Costs Capitalized Subsequent to Acquisition Land Buildings & Improvements (1) Total Accumulated Depreciation and Amortization Net Accredo Health Orlando, FL 2006 2016-06-15 $ 8,538,000 $ 1,706,641 $ 9,003,859 $ 10,710,500 $ 414,698 $ 1,706,641 $ 9,418,557 $ 11,125,198 $ (2,221,380 ) $ 8,903,818 Dollar General Litchfield, ME 2015 2016-11-04 622,884 293,912 1,104,202 1,398,114 — 293,912 1,104,202 1,398,114 (166,006 ) 1,232,108 Dollar General Wilton, ME 2015 2016-11-04 627,992 212,036 1,472,393 1,684,429 — 212,036 1,472,393 1,684,429 (212,451 ) 1,471,978 Dollar General Thompsontown, PA 2015 2016-11-04 627,992 217,912 1,088,678 1,306,590 — 217,912 1,088,678 1,306,590 (159,501 ) 1,147,089 Dollar General Mt. Gilead, OH 2015 2016-11-04 622,884 283,578 1,002,457 1,286,035 — 283,578 1,002,457 1,286,035 (152,925 ) 1,133,110 Dollar General Lakeside, OH 2015 2016-11-04 622,884 176,515 1,037,214 1,213,729 — 176,515 1,037,214 1,213,729 (156,949 ) 1,056,780 Dollar General Castalia, OH 2015 2016-11-04 622,884 154,676 1,033,818 1,188,494 — 154,676 1,033,818 1,188,494 (152,492 ) 1,036,002 Dana Cedar Park, TX 2013 2016-12-27 4,466,865 1,290,863 8,312,917 9,603,780 (1,946,609 ) 968,007 6,366,308 7,334,315 (1,835,800 ) 5,498,515 Northrop Grumman Melbourne, FL 1986 2017-03-07 5,518,589 1,191,024 12,533,166 13,724,190 — 1,191,024 12,533,166 13,724,190 (2,968,985 ) 10,755,205 exp US Services Maitland, FL 1985 2017-03-27 3,321,931 785,801 5,522,567 6,308,368 136,548 785,801 5,659,115 6,444,916 (833,278 ) 5,611,638 Wyndham Summerlin, NV 2001 2017-06-22 5,607,000 4,144,069 5,972,433 10,116,502 959,213 4,144,069 6,931,646 11,075,715 (1,170,222 ) 9,905,493 Williams-Sonoma Summerlin, NV 1996 2017-06-22 4,438,200 3,546,744 4,028,821 7,575,565 1,054,532 3,546,745 5,083,353 8,630,098 (1,058,455 ) 7,571,643 Omnicare Richmond, VA 2004 2017-07-20 4,193,171 800,772 6,523,599 7,324,371 219,818 800,772 6,743,417 7,544,189 (832,474 ) 6,711,715 EMCOR Cincinnati, OH 2010 2017-08-29 2,811,539 427,589 5,996,509 6,424,098 — 427,589 5,996,509 6,424,098 (604,163 ) 5,819,935 Husqvarna Charlotte, NC 2010 2017-11-30 6,379,182 974,663 11,879,485 12,854,148 — 974,663 11,879,485 12,854,148 (1,113,651 ) 11,740,497 AvAir Chandler, AZ 2015 2017-12-28 19,950,000 3,493,673 23,864,227 27,357,900 — 3,493,673 23,864,227 27,357,900 (2,111,134 ) 25,246,766 3M DeKalb, IL 2007 2018-03-29 8,166,000 758,780 16,360,400 17,119,180 — 758,780 16,360,400 17,119,180 (3,476,588 ) 13,642,592 Cummins Nashville, TN 2001 2018-04-04 8,332,200 3,347,960 12,654,529 16,002,489 — 3,347,960 12,654,529 16,002,489 (2,151,938 ) 13,850,551 Northrop Grumman Parcel Melbourne, FL — 2018-06-21 — 329,410 — 329,410 — 329,410 — 329,410 — 329,410 Texas Health Dallas, TX 1978 2018-09-13 4,363,203 1,827,914 5,862,010 7,689,924 — 1,827,914 5,862,010 7,689,924 (681,341 ) 7,008,583 Bon Secours Richmond, VA 2001 2018-10-31 5,180,552 1,658,659 9,184,248 10,842,907 346,200 1,658,659 9,530,448 11,189,107 (978,335 ) 10,210,772 Costco Issaquah, WA 1987 2018-12-20 18,850,000 8,202,915 21,825,853 30,028,768 67,165 8,202,915 21,893,018 30,095,933 (2,654,329 ) 27,441,604 Taylor Fresh Foods Yuma, AZ 2001 2019-10-24 12,350,000 4,312,016 32,776,370 37,088,386 — 4,312,016 32,776,370 37,088,386 (1,597,022 ) 35,491,364 Levins Sacramento, CA 1970 2019-12-31 2,032,332 1,404,863 3,204,715 4,609,578 41,739 1,404,863 3,246,454 4,651,317 (220,609 ) 4,430,708 Dollar General Bakersfield, CA 1952 2019-12-31 2,268,922 1,099,458 3,824,688 4,924,146 237,198 1,099,458 4,061,886 5,161,344 (147,132 ) 5,014,212 The following table summarizes the Company’s real estate assets and accumulated depreciation and amortization as of December 31, 2020 and 2019: MODIV INC. (f/k/a RW HOLDINGS NNN REIT, INC.) Schedule III Real Es tate Assets and Accumulated Depreciation and Amortization December 31, 2020 and 2019 Initial Cost to Company Gross Amount at Which Carried at Close of Period Description Location Original Date Encumbrances Land Buildings & Total Costs Land Buildings & Total Accumulated Net PMI Preclinical San Carlos, CA 1974 2019-12-31 $ 4,020,418 $ 5,243,803 $ 10,018,300 $ 62,099 $ 4,774,497 $ 5,305,902 $ 10,080,399 $ (204,321 ) $ 9,876,078 GSA (MSHA) Vacaville, CA 1987 2019-12-31 1,752,092 399,062 2,869,790 3,268,852 86,531 399,062 2,956,321 3,355,383 (138,515 ) 3,216,868 PreK Education San Antonio, TX 2014 2019-12-31 5,037,846 11,411,964 12,375,008 520,206 963,044 11,932,170 12,895,214 (599,428 ) 12,295,786 Dollar Tree Morrow, GA 1997 2019-12-31 — 159,829 1,020,053 1,179,882 213,783 159,829 1,233,836 1,393,665 (70,911 ) 1,322,754 Solar Turbines San Diego, CA 1985 2019-12-31 2,777,552 2,483,960 4,722,578 7,206,538 210,729 2,483,960 4,933,307 7,417,267 (338,232 ) 7,079,035 Wood Group San Diego, CA 1985 2019-12-31 3,397,371 3,461,256 6,662,918 10,124,174 73,339 3,461,256 6,736,257 10,197,513 (565,017 ) 9,632,496 ITW Rippey El Dorado Hills, CA 1998 2019-12-31 3,039,777 787,945 6,392,126 7,180,071 195,459 787,945 6,587,585 7,375,530 (303,219 ) 7,072,311 Dollar General Big Spring, TX 2015 2019-12-31 599,756 103,838 1,114,728 1,218,566 139,468 103,838 1,254,196 1,358,034 (50,969 ) 1,307,065 Gap Rocklin, CA 1998 2019-12-31 3,569,990 2,076,754 5,715,144 7,791,898 946,755 2,076,754 6,661,899 8,738,653 (479,306 ) 8,259,347 L-3 Communications Carlsbad, CA 1984 2019-12-31 5,185,929 3,552,878 8,099,339 11,652,217 433,675 3,552,878 8,533,014 12,085,892 (470,823 ) 11,615,069 Sutter Health Rancho Cordova, CA 2009 2019-12-31 13,879,655 2,443,240 26,690,356 29,133,596 2,038,069 2,443,240 28,728,425 31,171,665 (1,080,349 ) 30,091,316 Walgreens Santa Maria, CA 2001 2019-12-31 3,172,846 1,832,430 3,512,156 5,344,586 214,801 1,832,430 3,726,957 5,559,387 (132,961 ) 5,426,426 176,948,438 65,681,176 289,524,113 355,205,289 6,665,416 65,358,321 296,189,529 361,547,850 (32,091,211 ) 329,456,639 (1) Building and improvements include tenant origination and absorption costs. Notes: • The aggregate cost of real estate for U.S. federal income tax purposes was approximately $328,029,000 (unaudited) as of December 31, 2020. • Real estate investments (excluding land) are depreciated over their estimated useful lives. Their useful lives are generally 10-48 years for buildings, the shorter of 15 years or remaining lease term for site/building improvements, the shorter of 15 years or remaining contractual lease term for tenant improvements and the remaining lease term with consideration as to above- and below-market extension options for above- and below-market lease intangibles for tenant origination and absorption costs. • The real estate assets are 100% owned by the Company. The following table summarizes the Company’s real estate assets and accumulated depreciation and amortization as of December 31, 2020 and 2019: MODIV INC. (f/k/a RW HOLDINGS NNN REIT, INC.) Schedule III Real Estate Assets and Accumulated Depreciation and Amortization December 31, 2020 and 2019 2020 2019 Real estate investments: Balance at beginning of year $ 423,947,488 $ 235,212,009 Acquisitions — 185,446,483 Improvements to real estate 673,631 3,288,996 Dispositions (26,575,397 ) — Held for sale (26,230,247 ) — Impairment of real estate (10,267,625 ) — Balance at end of year $ 361,547,850 $ 423,947,488 Accumulated depreciation and amortization: Balance at beginning of year $ (20,411,794 ) $ (10,563,664 ) Depreciation and amortization (15,759,199 ) (9,848,130 ) Dispositions 2,435,274 — Held for sale 1,644,508 — Balance at end of year $ (32,091,211 ) $ (20,411,794 ) |
BUSINESS AND ORGANIZATION (Q2)
BUSINESS AND ORGANIZATION (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
BUSINESS AND ORGANIZATION | NOTE 1. BUSINESS AND ORGANIZATION Modiv Inc. (the “Company”) was incorporated on May 15, 2015 as a Maryland corporation. The Company has the authority to issue 450,000,000 shares of stock, consisting of 50,000,000 shares of preferred stock, $0.001 par value per share, 300,000,000 shares of Class C common stock, $0.001 par value per share, and 100,000,000 shares of Class S common stock, $0.001 par value per share. Effective February 1, 2021, with the authorization of the board of directors, the Company filed Articles of Amendment to the Company’s charter in the State of Maryland in order to effect a 1:3 reverse stock split of the Company’s Class C common stock and Class S common stock and, following the implementation of the reverse stock split, to decrease the par value of each post-split share of the Company’s Class C common stock and Class S common stock from $0.003 per share to $0.001 per share. Since December 31, 2019, the Company has been internally managed following its December 31, 2019 acquisition of the business of BrixInvest, LLC, a Delaware limited liability company and the Company’s former sponsor (“BrixInvest”), and the Company’s merger with Rich Uncles Real Estate Investment Trust I (“REIT I”) on December 31, 2019 pursuant to an Agreement and Plan of Merger dated September 19, 2019 whereby REIT I merged with and into Katana Merger Sub, LP (“Merger Sub”), a Delaware limited partnership and wholly-owned subsidiary of the Company, with Merger Sub surviving as a direct, wholly-owned subsidiary of the Company (the “Merger”). Through the Merger and acquisitions, the Company has created one of the largest non-listed real estate investment funds to be raised via crowdfunding technology and the first real estate crowdfunding platform to be completely investor-owned. The Company plans to expand beyond its traditional single-tenant portfolio of triple-net leased properties to provide individual investors access to a diversified portfolio of real estate and real estate-related investments designed to provide both income and long-term growth. The Company will continue to seek opportunities to be an aggregator within the non-listed real estate product industry, utilizing the combination of its deep understanding of both the crowdfunding and real estate markets and the strength of its stockholder-owned, self-managed business model. The Company holds its investments in real property through special purpose limited liability companies which are wholly-owned subsidiaries of Modiv Operating Partnership, LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership was formed on January 28, 2016. The Company is the sole general partner of and owned an 83% partnership interest in the Operating Partnership on June 30, 2021. The Operating Partnership limited partners include holders of several classes of ownership with various vesting and enhancement terms as further described in Note 11. As of June 30, 2021, the Company's portfolio of approximately 2.3 million square feet of aggregate leasable space consisted of investments in 38 real estate properties, comprised of: 12 retail properties, 14 office properties and 12 industrial properties, including one industrial property which is classified as held for sale as of June 30, 2021 and an approximate 72.7% tenant-in-common interest in a Santa Clara, California industrial property (the “TIC Interest”). The Company's investments in 38 real estate properties includes 14 of the original 20 operating properties which were acquired from REIT I through the Merger on December 31, 2019 (see Note 3 for additional discussion). Self-Management Transaction and Merger on December 31, 2019 The Company was externally managed through December 31, 2019 by its former external advisor, Rich Uncles NNN REIT Operator, LLC, a Delaware limited liability company. On December 31, 2019, the Company merged with REIT 1 and a self-management transaction was completed, whereby the Company effectuated a contribution agreement dated September 19, 2019 (the “Contribution Agreement”) pursuant to which the Company acquired substantially all of the assets and assumed certain liabilities of its former external advisor and former sponsor in exchange for units of limited partnership interest in the Operating Partnership (the “Self-Management Transaction”). As a result of the completion of the Self-Management Transaction, the Company became self-managed and eliminated all fees for acquisitions, dispositions and management of its properties, except for third-party property management fees. Following completion of the Self-Management Transaction and the issuance of various other tranches of limited partnership interests, the Company owned an approximately 83% partnership interest in the Operating Partnership as of June 30, 2021. Offerings On July 15, 2015, the Company filed a registration statement on Form S-11 (File No. 333-205684) with the SEC to register an initial public offering of a maximum of 30,000,000 (adjusted for the 1:3 reverse stock split) of its shares of common stock for sale to the public (the “Primary Offering”). The Company also registered a maximum of 3,333,333 (adjusted for the 1:3 reverse stock split) of its shares of common stock pursuant to the Company's distribution reinvestment plan (the “DRP”) (the “Initial DRP Offering” and together with the Primary Offering, the “Initial Registered Offering”). During 2016, the SEC declared the Company's registration statement effective and the Company began offering shares of common stock to the public. Pursuant to the Initial Registered Offering, the Company sold shares of Class C common stock directly to investors, with a minimum investment in shares of $500. Commencing in August 2017, the Company began selling shares of its Class C common stock only to U.S. persons as defined under Rule 903 promulgated under the Securities Act, and began selling shares of its Class S common stock as a result of the commencement of the Class S Offering (as defined below) to non-U.S. Persons. In August 2017, the Company began offering up to 33,333,333 shares (adjusted for the 1:3 reverse stock split) of Class S common stock exclusively to non-U.S. Persons as defined under Rule 903 promulgated under the Securities Act, pursuant to an exemption from the registration requirements of the Securities Act and in accordance with Regulation S of the Securities Act (the “Class S Offering” and, together with the Registered Offerings (as defined below) and the Private Offering (as defined below, the “Offerings”). The Class S common stock has similar features and rights as the Class C common stock, including with respect to voting and liquidation, except that the Class S common stock offered in the Class S Offering may be sold only to non-U.S. Persons and may be sold through brokers or other persons who may be paid upfront and deferred selling commissions and fees. On December 23, 2019, the Company commenced a follow-on offering pursuant to a new registration statement on Form S-11 (File No. 333-231724) (the “Follow-on Offering” and, together with the Initial Registered Offering and the 2021 DRP Offering (as defined below), the “Registered Offerings”), which registered the offer and sale of up to $800,000,000 in share value of Class C common stock, including $725,000,000 in share value of Class C common stock pursuant to the primary portion of the Follow-on Offering and $75,000,000 in share value of Class C common stock pursuant to the Company's DRP. The Company ceased offering shares pursuant to the Initial Registered Offering concurrently with the commencement of the Follow-on Offering. In response to the significant economic impacts of the COVID-19 pandemic, effective as of the close of business on May 7, 2020, the Company's board of directors temporarily suspended the primary portion of the Company's Follow-on Offering and Class S Offering until such time as the board of directors approved and established an updated estimated net asset value (“NAV”) per share of the Company’s common stock and determined to resume such primary offerings. On May 20, 2020, the Company's board of directors approved and established an updated estimated NAV per share of the Company's common stock of $ 21.01 Commencing on June 1, 2020, the Company's board of directors resumed the primary portions of the Follow-on Offering and the Class S Offering. The purchase price per share in the primary portion of the Follow-on Offering was decreased from $30.81 (unaudited and adjusted for the 1:3 reverse stock split) to $ 21.01 21.01 21.01 On January 22, 2021, with the authorization of the board of directors, the Company amended and restated its DRP with respect to the Company's shares of Class C common stock in order to reflect its corporate name change and to remove the ability of the Company's stockholders to elect to reinvest only a portion of their cash distributions in shares through the DRP so that investors who elect to participate in the DRP must reinvest all cash distributions in shares. In addition, the amended and restated DRP provides for determinations of the NAV per share by the board of directors more frequently than annually. The amended and restated DRP was effective with respect to distributions that were paid in February 2021. On January 22, 2021, the Company filed a registration statement on Form S-3 (File No. 333-252321) to register a maximum of $100,000,000 in share value of Class C common stock to be issued pursuant to the amended and restated DRP (the “2021 DRP Offering” and, collectively with the Initial DRP Offering, the “Registered DRP Offering”). The Company commenced offering shares of Class C common stock pursuant to the 2021 DRP Offering upon termination of the Follow-on Offering. Effective January 27, 2021, the board of directors terminated the Company’s Follow-on Offering. In connection with the termination of the Follow-on Offering, the Company stopped accepting investor subscriptions on January 22, 2021. As of January 27, 2021, the Company had $600,547,672 in share value of unsold shares in the Follow-on Offering, which were deregistered with the SEC. On February 1, 2021, the Company commenced a private offering of Class C common stock under Regulation D promulgated under the Securities Act (the “Private Offering”) and accepted investor subscriptions from only accredited investors until the Company terminated the Private Offering on August 12, 2021. On February 1, 2021, with the authorization of the board of directors, the Company amended and restated its Class C common stock share repurchase program (the “Class C SRP”) in order to (i) revise the minimum holding period before a stockholder may participate in the Class C SRP from three months to six months, (ii) revise the limitations on the share repurchase price so that shares held for less than two years will be repurchased at 98% of the most recently published NAV per share and shares held for at least two years will be repurchased at 100% of the most recently published NAV per share (as opposed to a repurchase price of 97% of the most recently published NAV per share for shares held less than one year, 98% of the most recently published NAV per share for shares held for more than one year but less than two years, 99% of the most recently published NAV per share for shares held for more than two years but less than three years, and 100% of the most recently published NAV per share for shares held for at least three years), (iii) increase the minimum share value (based on the most recently published NAV per share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum share value, from $500 to $1,000, and (iv) include language that provides that the Class C SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. On July 28, 2021, the board of directors approved a further amendment and restatement of the Class C SRP to eliminate the holding period for shares of Class C common stock purchased prior to February 1, 2021, which is no longer applicable. With the authorization of the board of directors, the Company also amended and restated its Class S common stock share repurchase program (“Class S SRP”) on February 1, 2021 in order to (i) allow the Company to waive the minimum one year holding period before a holder of shares of Class S common stock may participate in the Class S SRP in the event of extraordinary circumstances which would place undue hardship on a stockholder, (ii) increase the minimum Class S share value (based on the most recently published NAV per Class S share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum Class S share value, from $500 to $1,000, and (iii) include language that provides that the Class S SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. Since December 31, 2020, the Company’s board of directors has approved and established an updated estimated NAV per share of the Company’s Class C common stock and Class S common stock as follows: Valuation Date Effective Date NAV Per Share December 31, 2020 January 27, 2021 $ 23.03 March 31, 2021 May 5, 2021 $ 24.61 June 30, 2021 August 4, 2021 $ 26.05 Additional information on the determination of the Company's most recent estimated NAV per share, including the process used to determine its estimated NAV per share, can be found in the Company's Current Report on Form 8-K filed with the SEC on August 4, 2021. Effective August 4, 2021, the purchase price per share of the Company’s Class C common stock in the Private Offering was increased from $ 24.61 26.05 26.05 26.05 24.61 26.05 The Company filed with the SEC a Regulation A Offering Statement on Form 1-A, including its preliminary offering circular, for a $75,000,000 offering of its Class C common stock on June 29, 2021 and plans to file an amended Form 1-A promptly after filing its Quarterly Report on Form 10-Q for the period ended June 30, 2021. Once the SEC qualifies the Regulation A Offering Statement on Form 1-A that was initially filed with the SEC on June 29, 2021, the Regulation A offering will allow the Company to once again accept investor subscriptions from investors who are not accredited and provide access to commercial real estate investments to a much larger audience. Special Purpose Acquisition Company To further the Company’s mission of being the leading provider of alternative real estate-related products, and to capitalize on opportunities in the public marketplace, the Company is sponsoring Modiv Acquisition Corp. (“MACS”), a special purpose acquisition company (“SPAC”). MACS was formed for the purpose of entering into a business combination with one or more businesses or entities focusing on fintech and proptech targets located in North America whose core purpose is related to the real estate industry. MACS publicly filed its registration statement on Form S-1 with the SEC on March 24, 2021 for a proposed initial public offering (“IPO”) that would raise $100,000,000, or $115,000,000 if the over-allotment option is exercised. In connection with the public filing of the Form S-1, the Company deposited $4,500,000 of risk capital to be invested in MACS in escrow with the attorneys for MACS in March 2021. However, there has been significant disruption in the IPO market for SPACs during the second quarter of 2021 and there can be no assurance that MACS can complete an IPO. The Company is continuing to evaluate how to respond to the changes in the market and may decide to either modify MACS’s IPO or not proceed with the IPO. Since the timing of an IPO, if any, by MACS is uncertain, the $4,500,000 deposit was released from escrow and returned to the Company in June 2021. | NOTE 1. BUSINESS AND ORGANIZATION Modiv Inc. (the “Company” or “Modiv”) was incorporated on May 14, 2015 as a Maryland corporation. The Company was originally incorporated under the name Rich Uncles Real Estate Investment Trust, Inc., and changed its name on October 19, 2015 to Rich Uncles NNN REIT, Inc., again on August 14, 2017 to RW Holdings NNN REIT, Inc. and to Modiv Inc. on January 22, 2021. The Company has the authority to issue 450,000,000 shares of stock, consisting of 50,000,000 shares of preferred stock, $0.001 par value per share, 300,000,000 shares of Class C common stock, $0.001 par value per share, and 100,000,000 shares of Class S common stock, $0.001 par value per share. Effective February 1, 2021, with the authorization of the board of directors, the Company filed Articles of Amendment to the Company’s charter in the State of Maryland in order to effect a 1: 3 The Company was initially formed to primarily invest in single-tenant income-producing properties located in the United States, leased to creditworthy tenants under long-term net leases. Since December 31, 2019, the Company has been internally managed following its December 31, 2019 acquisition of the business of BrixInvest, LLC, a Delaware limited liability company and the Company’s former sponsor (“BrixInvest” or the “Former Sponsor”), and the Company’s merger with Rich Uncles Real Estate Investment Trust I (“REIT I”). During 2020, the Company acquired the intellectual property of buildingbits.com (“BuildingBITs”), an innovative online real estate crowd funding platform, and the REITless investment platform (“REITless”), an online investment platform for commercial real estate investment offerings. In 2021, the Company will continue to seek opportunities to be an aggregator within the non-listed real estate product industry, utilizing the combination of its deep understanding of both the crowd funding and real estate markets and the strength of its stockholder-owned, self-managed business model. The Company plans to invest in a diversified portfolio of real estate and real estate-related investments. The Company holds its investments in real property through special purpose limited liability companies which are wholly-owned subsidiaries of Modiv Operating Partnership, LP, formerly known as RW Holdings NNN REIT Operating Partnership, LP, a Delaware limited partnership (the “Operating Partnership”), or Katana Merger Sub, LP, a Delaware limited partnership (“Merger Sub”), which is described below and was merged into the Operating Partnership on December 31, 2020. The Operating Partnership was formed on January 28, 2016. The Company is the sole general partner of and owned a 99% partnership interest in the Operating Partnership prior to the completion of the Self-Management Transaction (defined below) on December 31, 2019. The Company's wholly-owned subsidiary, Rich Uncles NNN LP, LLC, a Delaware limited liability company formed on May 13, 2016 (“NNN LP”), owned the remaining 1% partnership interest in the Operating Partnership and was the sole limited partner of the Operating Partnership prior to the completion of the Self-Management Transaction on December 31, 2019. Following the completion of the Self-Management Transaction, the Company, including NNN LP, owned an approximately 87% partnership interest in the Operating Partnership. Daisho OP Holdings, LLC (“Daisho”), a formerly wholly-owned subsidiary of BrixInvest which was spun off from BrixInvest on December 31, 2019, was issued and held 657,949.5 units of Class M limited partnership interest (the “Class M OP Units”), or an approximately 12% limited partnership interest, in the Operating Partnership as of December 31, 2019. The Class M OP Units were distributed to the members of Daisho during 2020. In connection with the Self-Management Transaction, the Company's Chief Executive Officer and Chief Financial Officer were issued an aggregate of 56,029 units of Class P limited partnership interest (the “Class P OP Units”) in the Operating Partnership and thereby owned the remaining approximate 1% limited partnership interest in the Operating Partnership as of December 31, 2019. Following the issuance of 360,000 units (adjusted for the 1: 3 Note 11 The Company was externally managed by its former advisor, Rich Uncles NNN REIT Operator, LLC (the “Former Advisor”), a Delaware limited liability company, pursuant to the Second Amended and Restated Advisory Agreement dated August 11, 2017, as amended (the “Advisory Agreement”), through December 31, 2019. The Former Advisor was wholly-owned by BrixInvest, whose members include Aaron S. Halfacre and Raymond Wirta, the Company’s Chief Executive Officer and Chairman of the Board, respectively. On each of June 24, 2015 and December 31, 2015, the Company issued 3,333.3 shares (adjusted for the 1: 3 3 30.00 3 3 On December 31, 2019, pursuant to an Agreement and Plan of Merger dated September 19, 2019 (the “Merger Agreement”), REIT I merged with and into Merger Sub, a wholly-owned subsidiary of the Company, with Merger Sub surviving as a direct, wholly-owned subsidiary of the Company (the “Merger”). At such time, the separate existence of REIT I ceased. As a result, the Company issued 2,680,740.5 shares (adjusted for the 1: 3 Note 3 On July 15, 2015, the Company filed a registration statement on Form S-11 (File No. 333-205684) with the Securities and Exchange Commission (the “SEC”) to register an initial public offering of a maximum of 30,000,000 (adjusted for the 1: 3 3 On August 11, 2017, the Company began offering up to 33,333,333 shares (adjusted for the 1: 3 On December 23, 2019, the Company commenced a follow-on offering pursuant to a new registration statement on Form S-11 (File No. 333-231724) (the “Follow-on Offering” and, together with the Initial Registered Offering and the 2021 DRP Offering (as defined below), the “Registered Offerings”), which registered the offer and sale of up to $800,000,000 in share value of Class C common stock, including $725,000,000 in share value of Class C common stock pursuant to the primary portion of the Follow-on Offering and $75,000,000 in share value of Class C common stock pursuant to the Company's DRP. The Company ceased offering shares pursuant to the Initial Registered Offering concurrently with the commencement of the Follow-on Offering. In response to the significant economic impacts of the novel coronavirus (“COVID-19”) pandemic, effective as of the close of business on May 7, 2020, the Company’s board of directors temporarily suspended the primary portion of the Company’s Follow-on Offering and Class S Offering until such time as the board of directors approved and established an updated estimated net asset value (“NAV”) per share of the Company’s common stock and determined to resume such primary offerings. On May 20, 2020, the Company’s board of directors approved and established an updated estimated NAV per share of the Company’s common stock of $ 21.01 3 Commencing on June 1, 2020, the Company’s board of directors resumed the primary portions of the Follow-on Offering and the Class S Offering. The purchase price per share in the primary portion of the Follow-on Offering was decreased from $30.81 (unaudited and adjusted for the 1: 3 21.01 3 21.01 3 21.01 3 On January 22, 2021, with the authorization of the board of directors, Modiv amended and restated its DRP with respect to the Company's shares of Class C common stock in order to reflect its corporate name change and to remove the ability of the Company’s stockholders to elect to reinvest only a portion of their cash distributions in shares through the DRP so that investors who elect to participate in the amended and restated DRP must reinvest all cash distributions in shares. In addition, the amended and restated DRP provides for determinations by the board of directors of the NAV per share more frequently than annually. The amended and restated DRP was effective with respect to distributions that were paid in February 2021. On January 22, 2021, the Company filed a registration statement on Form S-3 (File No. 333-252321) to register a maximum of $100,000,000 of additional shares of Class C common stock to be issued pursuant to the amended and restated DRP (the “2021 DRP Offering” and, collectively with the Initial DRP Offering, the “Registered DRP Offering”). The Company commenced offering shares of Class C common stock pursuant to the 2021 DRP Offering upon termination of the Follow-on Offering, as discussed below. Effective January 27, 2021, the board of directors terminated the Company’s Follow-on Offering. In connection with the termination of the Follow-on Offering, the Company stopped accepting investor subscriptions on January 22, 2021. On February 1, 2021, the Company commenced a private offering under Regulation D of the Securities Act of 1933 and is accepting investor subscriptions from accredited investors. On January 27, 2021, the Company’s board of directors approved and established an updated estimated NAV per share of the Company’s Class C common stock and Class S common stock of $ 23.03 3 Effective January 31, 2021, the Company and North Capital Private Securities Corporation (“NCPS”) terminated their Dealer Manager Agreement, dated January 2, 2020, pursuant to which NCPS had agreed to act as dealer manager in connection with the Follow-on Offering. Effective January 31, 2021, with the authorization of the board of directors, NCPS and the Company entered into a new Dealer Manager Agreement pursuant to which NCPS has agreed to act as dealer manager in connection with investments in the Company by accredited investors. On February 1, 2021, with the authorization of the board of directors, the Company amended and restated its Class C common stock share repurchase program (the “Class C SRP”) in order to (i) revise the minimum holding period before a stockholder may participate in the Class C SRP from 90 days to six months, (ii) revise the limitations on the share repurchase price so that shares held for less than two years will be repurchased at 98% of the most recently published NAV per share and shares held for at least two years will be repurchased at 100% of the most recently published NAV per share (as opposed to a repurchase price of 97% of the most recently published NAV per share for shares held less than one year, 98% of the most recently published NAV per share for shares held for more than one year but less than two years, 99% of the most recently published NAV per share for shares held for more than two years but less than three years, and 100% of the most recently published NAV per share for shares held for at least three years), (iii) increase the minimum share value (based on the most recently published NAV per share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum share value, from $500 to $1,000, and (iv) include language that provides that the Class C SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. The minimum holding period before a stockholder may participate in the Class C SRP for shares purchased prior to February 1, 2021 will remain at 90 days. With the authorization of the board of directors, the Company also amended and restated its Class S common stock share repurchase program (the “Class S SRP”) on February 1, 2021 in order to (i) allow the Company to waive the minimum one year holding period before a holder of Class S shares may participate in the Class S SRP in the event of extraordinary circumstances which would place undue hardship on a stockholder, (ii) increase the minimum Class S share value (based on the most recently published NAV per Class S share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum Class S share value, from $500 to $1,000, and (iii) include language that provides that the Class S SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. Through December 31, 2020, the Company had sold 6,627,934 shares (adjusted for the 1: 3 3 3 3 As of December 31, 2020, the Company had investments in (i) 36 operating properties, excluding four properties held for sale, comprised of: 11 retail properties, 14 office properties and 11 industrial properties (including 14 operating properties of the original 20 operating properties which were acquired through the Merger on December 31, 2019, and comprised of: (a) five retail properties, (b) four office properties and (c) five industrial properties, exclusive of three retail properties classified as held for sale); (ii) one parcel of land, which currently serves as an easement to one of the Company’s office properties; and (iii) an approximate 72.7% tenant-in-common interest in a Santa Clara office property (the “TIC Interest”). During the year ended December 31, 2020, the Company determined to sell nine eight one Notes 4 11 |
SUMMARY OF SIGNIFICANT ACOUNT_2
SUMMARY OF SIGNIFICANT ACOUNTING POLICIES (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and the rules and regulations of the SEC. Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. Such unaudited condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, which is responsible for their integrity and objectivity. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2021. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which are normal and recurring, necessary to fairly state the Company's financial position, results of operations and cash flows. All significant intercompany balances and transactions are eliminated in consolidation. The unaudited condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the audited financial statements. Reverse Stock Split On February 1, 2021, the Company effected a 1: 3 Use of Estimates The preparation of the unaudited condensed consolidated financial statements and the accompanying notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. These estimates are based on historical experience and, in some cases, assumptions based on current and future market experience, including considerations related to the COVID-19 pandemic (see Notes 3 and 5 for the prior year's impairment charges related primarily to COVID-19). Actual results may differ from those estimates. Noncontrolling Interests in the Operating Partnership The Company accounts for the noncontrolling interests in its Operating Partnership in accordance with the related accounting guidance. Due to the Company's control of the Operating Partnership through its general partnership interest therein and the limited rights of the limited partners, the Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company, and the limited partner interests not held by the Company are reflected as noncontrolling interests in the accompanying unaudited condensed consolidated balance sheets and statements of equity. The noncontrolling interests were issued on December 31, 2019 and represent non-voting, non-dividend accruing interests with no allocation of profits or losses. As described in Note 11, the interests were not able to be converted or exchanged prior to (i) December 31, 2020, the one-year anniversary of the closing of the Self-Management Transaction (in the case of the units of Class M limited partnership interest (“Class M OP Units”) in the Operating Partnership), or (ii) the expiration of the Lockup Period (as defined in Note 11) (in the case of the units of Class P limited partnership interest (“Class P OP Units”) in the Operating Partnership). As of June 30, 2021, no interests have been converted or exchanged. Business Combinations The Company accounts for business combinations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”) and applicable Accounting Standards Updates (each, an “ASU”), whereby the total consideration transferred is allocated to the assets acquired and liabilities assumed, including amounts attributable to any non-controlling interests, when applicable, based on their respective estimated fair values as of the date of acquisition. Goodwill represents the excess of consideration transferred over the estimated fair value of the net assets acquired in a business combination. ASC 805 defines a business as an integrated set of activities and assets (collectively, a “set”) that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. To be considered a business, the set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. ASC 805 provides a practical screen to determine when a set would not be considered a business. If the screen is not met and further assessment determines that the set is not a business, then the set is an asset acquisition. The primary difference between a business combination and an asset acquisition is that an asset acquisition requires cost accumulation and allocation at relative fair value. Acquisition costs are capitalized for an asset acquisition and expensed for a business combination. Revenue Recognition The Company adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”), effective January 1, 2018. The Company’s revenue impacted by ASU No. 2014-09 included revenue generated by sales of real estate, other operating income and tenant reimbursements for substantial services earned at the Company’s properties. Such revenues are recognized when the services are provided and the performance obligations are satisfied. Tenant reimbursements, consisting of amounts due from tenants for common area maintenance, property taxes and other recoverable costs, are recognized in rental income subsequent to the adoption of Topic 842, as discussed below, in the period the recoverable costs are incurred. Tenant reimbursements, for which the Company pays the associated costs directly to third-party vendors and is reimbursed by the tenants, are recognized and recorded on a gross basis. The Company adopted FASB ASU No. 2016-02, Leases (Topic 842), and the related FASB ASU Nos. 2018-10, 2018-11, 2018-20 and 2019-01 effective January 1, 2019, which provide practical expedients, technical corrections and improvements for certain aspects of ASU 2016-02, on a modified retrospective basis (collectively, “Topic 842”). Topic 842 establishes a single comprehensive model for entities to use in accounting for leases. Topic 842 applies to all entities that enter into leases. Lessees are required to report assets and liabilities that arise from leases. Lessor accounting has largely remained unchanged; however, certain refinements were made to conform with revenue recognition guidance, specifically related to the allocation and recognition of contract consideration earned from lease and non-lease revenue components. Topic 842 impacts the Company's accounting for leases primarily as a lessor. However, Topic 842 also impacts the Company's accounting as a lessee but is considered not material. As a lessor, the Company's leases with tenants generally provide for the lease of real estate properties, as well as common area maintenance, property taxes and other recoverable costs. To reflect recognition as one lease component, rental income and tenant reimbursements and other lease related property income that meet the requirements of the practical expedient provided by ASU No. 2018-11 have been combined under rental income in the Company's unaudited condensed consolidated statements of operations. For the three months ended June 30, 2021 and 2020, tenant reimbursements included in rental income amounted to $1,703,974 and $1,538,586, respectively, and for the six months ended June 30, 2021 and 2020, tenant reimbursements included in rental income amounted to $3,395,361 and $3,899,505, respectively. The Company recognizes rental income from tenants under operating leases on a straight-line basis over the noncancelable term of the lease when collectability of such amounts is reasonably assured. Recognition of rental income on a straight-line basis includes the effects of rental abatements, lease incentives and fixed and determinable increases in lease payments over the lease term. If the lease provides for tenant improvements, management of the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) 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. Tenant reimbursements of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period the expenses are incurred and presented gross if the Company is the primary obligor and, with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. In instances where the operating lease agreement has an early termination option, the termination penalty is based on a predetermined termination fee or based on the unamortized tenant improvements and leasing commissions. The Company evaluates the collectability of rents and other receivables on a regular basis based on factors including, among others, payment history, credit rating, the asset type, and current economic conditions. If the Company’s evaluation of these factors indicates it may not recover the full value of the receivable, it provides an allowance against the portion of the receivable that it estimates may not be recovered. This analysis requires the Company to determine whether there are factors indicating a receivable may not be fully collectible and to estimate the amount of the receivable that may not be collected. Gain or Loss on Sale of Real Estate Property The Company recognizes gain or loss on sale of real estate property when the Company has executed a contract for sale of the property, transferred controlling financial interest in the property to the buyer and determined that it is probable that the Company will collect substantially all of the consideration for the property. The Company's real estate property sale transactions for the six months ended June 30, 2021 met these criteria at closing. There were no sales transactions for the three months ended June 30, 2021. When properties are sold, operating results of the properties remain in continuing operations, and any associated gain or loss from the disposition is included in gain or loss on sale of real estate investments in the Company’s accompanying unaudited condensed consolidated statements of operations. Bad Debts and Allowances for Tenant and Deferred Rent Receivables The Company's determination of the adequacy of its allowances for tenant receivables includes a binary assessment of whether or not the amounts due under a tenant’s lease agreement are probable of collection. For such amounts that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the lease term. For such amounts that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. In addition, for tenant and deferred rent receivables deemed probable of collection, the Company also may record an allowance under other authoritative GAAP depending upon the Company's evaluation of the individual receivables, specific credit enhancements, current economic conditions, and other relevant factors. Such allowances are recorded as increases or decreases through rental income in the Company's unaudited condensed consolidated statements of operations. With respect to tenants in bankruptcy, management makes 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 allowance for the tenant’s receivable balance and generally will not recognize subsequent rental income until cash is received or until the tenant is no longer in bankruptcy and has the ability to make rental payments. Leasing Costs Internal leasing costs and third-party legal fees and leasing commissions are charged to expense as incurred. These expenses are included in legal leasing costs under property expenses in the Company's unaudited condensed consolidated statements of operations. Impairment of Investment in Real Estate Properties The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of real estate assets may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of real estate assets may not be recoverable, management assesses whether the carrying value of the assets will be recovered through the future undiscounted operating cash flows expected from the use of and eventual disposition of the property. If, based on the analysis, the Company does not believe that it will be able to recover the carrying value of the asset, the Company records an impairment charge to the extent the carrying value exceeds the estimated fair value of the asset. As more fully discussed in Note 3, the Company recorded impairment charges of $349,457 and $9,506,525 related to one and four of its real estate properties, respectively, during the three and six months ended June 30, 2020, respectively. The Company did not incur any impairment charges for its real estate properties during the three and six months ended June 30, 2021. However, the Company recognized a reversal of a previously recognized impairment charge of $ 400,999 Other Comprehensive Loss For all periods presented, other comprehensive loss is the same as net loss. Per Share Data The Company reports a dual presentation of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted EPS uses the treasury stock method or the if-converted method, where applicable, to compute for the potential dilution that would occur if dilutive securities or commitments to issue common stock were exercised. Diluted EPS is the same as Basic EPS for the three and six months ended June 30, 2021 and 2020 as the Company had a net loss for all reported periods. As of June 30, 2021, there were 657,949.5 Class M OP Units, 56,029 Class P OP Units and 358,670 units of Class R limited partnership interest (“Class R OP Units”), net of forfeiture of 1,330 units (adjusted for the 1: 3 1.6667 1 1 The Company has presented the basic and diluted net loss per share amounts on the accompanying unaudited condensed consolidated statements of operations for Class C and Class S share classes as a combined common share class. Application of the two-class method for allocating net loss in accordance with the provisions of ASC 260, Earnings per Share, would have resulted in a net loss of $(0.13) and $(0.28) per share of Class C common stock for the three months ended June 30, 2021 and 2020, respectively, and a net loss of $(0.13) and $(0.28) per share of Class S common stock for the three months ended June 30, 2021 and 2020, respectively. The two-class method would have resulted in a net loss per share of $(0.25) and $(6.39) of Class C common stock for the six months ended June 30, 2021 and 2020, respectively, and $(0.25) and $(6.39) of Class S common stock for the six months ended June 30, 2021 and 2020, respectively. Any difference in net loss per share if allocated under this method primarily reflects the lower effective distributions per share for Class S stockholders as a result of the payment of the deferred commission to the Class S distributor of these shares, and also reflects the impact of the timing of the declaration of the distributions relative to the time the shares were outstanding. Fair Value Disclosures Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an existing price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value for certain financial instruments is derived using valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value: Cash and cash equivalents, restricted cash, deposit for investment in special purpose acquisition company, receivable from sale of real estate property, tenant receivables, prepaid expenses and other assets and accounts payable, accrued and other liabilities: These balances approximate their fair values due to the short maturities of these items. Derivative Instruments: The Company’s derivative instruments are presented at fair value in the accompanying unaudited condensed consolidated balance sheets. The valuation of these instruments is determined using a proprietary model that utilizes observable inputs. As such, the Company classifies these inputs as Level 2 inputs. The proprietary model uses the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and volatility. The fair values of interest rate swaps are estimated using the market standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit risks to the contracts, are incorporated in the fair values to account for potential nonperformance risk. Goodwill and Intangible Assets: The fair value measurements of goodwill and intangible assets are considered Level 3 nonrecurring fair value measurements. For goodwill, fair value measurement involves the determination of fair value of a reporting unit. The Company uses a Monte Carlo simulation model to estimate future performance, generating the fair value of the reporting unit's business. For intangible assets, fair value measurements include assumptions with inherent uncertainty, including projected offerings volumes and related projected revenues and long-term growth rates, among others. The carrying value of intangible assets is at risk of impairment if future projected offerings proceeds, revenues or long-term growth rates are lower than those currently projected. Credit facilities and economic relief note payable: The fair values of the Company’s credit facilities and economic relief note payable approximate the carrying values of the credit facility and economic relief note payable as their interest rates and other terms are comparable to those available in the market place for a similar credit facility and short-term note, respectively. Mortgage notes payable: The fair value of the Company’s mortgage notes payable is estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. 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 or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs. Restricted Cash Restricted cash is comprised of funds which are restricted for use as required by certain lenders in conjunction with an acquisition or debt financing or modification and for on-site and tenant improvements or property taxes. Restricted cash as of June 30, 2021 and December 31, 2020 amounted to $2,508,471 and $129,118, respectively, for the properties discussed below and other lender reserves. Under the terms of the Company’s June 2021 refinancing of mortgages on its properties leased to Northrop Grumman and L3Harris with Banc of California as described in Note 7, the Company established restricted cash accounts at Banc of California with $1,400,000 and $1,000,000 held for the Northrop Grumman and L3Harris properties, respectively, to fund building improvements, tenant improvements and leasing commissions. Pursuant to lease agreements, the Company had an obligation to pay for tenant improvements as of June 30, 2021 and December 31, 2020 of $189,136 and $60,598, respectively for tenant improvements to be incurred by tenants for which funds restricted by the lender were available. As of June 30, 2021 and December 31, 2020, the Company's restricted cash held to fund other improvements and leasing commissions totaled $2,210,864 and $32,086, respectively. Real Estate Investments Held for Sale The Company generally considers a real estate investment to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate investment held for sale, net” and “assets related to real estate investment held for sale,” respectively, in the accompanying unaudited condensed consolidated balance sheets. Mortgage notes payable and other liabilities related to real estate investments held for sale are classified as “mortgage notes payable related to real estate investments held for sale, net” and “liabilities related to real estate investments held for sale,” respectively, in the accompanying unaudited condensed consolidated balance sheets. Real estate investments classified as held for sale are no longer depreciated and are reported at the lower of their carrying value or their estimated fair value less estimated costs to sell. Operating results of properties that were classified as held for sale in the ordinary course of business are included in continuing operations in the Company’s accompanying unaudited condensed consolidated statements of operations. Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. The Company evaluates goodwill and other intangible assets for possible impairment in accordance with ASC 350, Intangibles–Goodwill and Other, on an annual basis, or more frequently when events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit has declined below its carrying value. If the carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized. In assessing goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macro-economic, industry-specific and company-specific factors. These factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of such reporting unit is less than its carrying amount, then a quantitative analysis is unnecessary. However, if the Company concludes otherwise, or if it elects to bypass the qualitative analysis, then it is required to perform a quantitative analysis that compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, a goodwill impairment loss is recognized for the lesser of: (a) the amount that the carrying amount of a reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to that reporting unit. Intangible assets consist of purchased customer-related intangible assets, marketing-related intangible assets, developed or acquired technology and other intangible assets. Intangible assets are amortized over their estimated useful lives using the straight-line method ranging from three years to five years. No significant residual value is estimated for intangible assets. An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. The Company evaluates long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. Restricted Stock and Restricted Stock Unit Awards The fair values of the Operating Partnership's units or restricted stock unit awards issued or granted by the Company are based on an estimated value per share of the Company’s common stock on the date of issuance or grant, adjusted for an illiquidity discount due to the illiquid nature of the underlying equity. Operating Partnership units issued as purchase consideration in connection with the Self-Management Transaction discussed in Note 11 are recorded in equity under noncontrolling interests in the Operating Partnership in the Company's unaudited condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020 and unaudited condensed consolidated statements of equity for the three and six months ended June 30, 2021 and 2020. For units granted to employees of the Company that are not included in the purchase consideration, the fair value of the award is amortized using the straight-line method over the requisite service period of the award, which is generally the vesting period. We have elected to record forfeitures as they occur. The Company determines the accounting classification of equity instruments (e.g. restricted stock units) that are issued as purchase consideration or part of the purchase consideration in a business combination, as either liability or equity, by first assessing whether the equity instruments meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity (“ASC 480-10”), and then in accordance with ASC 815-40, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock (“ASC 815-40”). Under ASC 480-10, equity instruments are classified as liabilities if the equity instruments are mandatorily redeemable, obligate the issuer to settle the equity instruments or the underlying shares by paying cash or other assets, or must or may require an unconditional obligation that must be settled by issuing a variable number of shares. If equity instruments do not meet liability classification under ASC 480-10, the Company assesses the requirements under ASC 815-40, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the equity instruments do not require liability classification under ASC 815-40, in order to conclude equity classification, the Company assesses whether the equity instruments are indexed to its common stock and whether the equity instruments are classified as equity under ASC 815-40 or other applicable GAAP guidance. After all relevant assessments are made, the Company concludes whether the equity instruments are classified as liability or equity. Liability classified equity instruments are required to be accounted for at fair value both on the date of issuance and on subsequent accounting period ending dates, with all changes in fair value after the issuance date recorded in the statements of operations as a gain or loss. Equity classified equity instruments are accounted for at fair value on the issuance date with no changes in fair value recognized after the issuance date. Reclassifications Certain prior year balance sheet accounts have been reclassified to conform with the current year presentation. The reclassification did not affect the balances in the prior year statement of operations. Recent Accounting Pronouncements New Accounting Standards Recently Issued and Not Yet Adopted In March 2020, the | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. The Company's financial statements, and the financial statements of the Operating Partnership, including its wholly-owned subsidiaries, are consolidated in the accompanying consolidated financial statements. The portion of the Operating Partnership which is not wholly-owned by the Company is presented as a noncontrolling interest. All significant intercompany balances and transactions are eliminated in consolidation. The accompanying consolidated financial statements and related notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in such consolidated financial statements and related notes. Actual results could differ materially from those estimates. Reverse Stock Split As discussed in Notes 1 and 11 3 Noncontrolling Interest in Consolidated Entities The Company accounts for the noncontrolling interest in its Operating Partnership in accordance with the related accounting guidance. Due to the Company's control of the Operating Partnership through its general partnership interest therein and the limited rights of the limited partners, the Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company, and the limited partner interests are reflected as a noncontrolling interest in the accompanying consolidated balance sheets. As described in Note 3 Business Combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations ASC 805 defines business as an integrated set of activities and assets (collectively, a “set”) that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. To be considered a business, the set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. ASC 805 provides a practical screen to determine when a set would not be considered a business. If the screen is not met and further assessment determines that the set is not a business, then the set is an asset acquisition. The primary difference between a business combination and an asset acquisition is that an asset acquisition requires cost accumulation and allocation at relative fair value whereas in a business combination the total consideration transferred is allocated among the fair value of the identifiable tangible and intangible assets and liabilities assumed. Acquisition costs are capitalized for an asset acquisition and expensed for a business combination (see Note 3 Revenue Recognition The Company adopted FASB Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606 The Company adopted FASB ASU No. 2016-02 “ Leases (Topic 842) As a lessor, the Company's leases with tenants generally provide for the lease of real estate properties, as well as common area maintenance, property taxes and other recoverable costs. Under Topic 842, the lease of space is considered a lease component while the common area maintenance, property taxes and other recoverable costs billings are considered nonlease components, which fall under revenue recognition guidance in ASU No. 2014-09. However, upon adopting the guidance in Topic 842, the Company determined that its tenant leases met the criteria to apply the practical expedient provided by ASU No. 2018-11 to recognize the lease and non-lease components together as one single component. This conclusion was based on the consideration that (1) the timing and pattern of transfer of the nonlease components and associated lease component are the same, and (2) the lease component, if accounted for separately, would be classified as an operating lease. As the lease of properties is the predominant component of the Company's leasing arrangements, the Company accounted for all lease and nonlease components as one-single component under Topic 842. To reflect recognition as one lease component, rental income and tenant reimbursements and other lease related property income that meet the requirements of the practical expedient provided by ASU No. 2018-11 have been combined under rental income subsequent to the adoption of Topic 842 for the year ended December 31, 2019 in the Company's consolidated statements of operations. For the years ended December 31, 2020 and 2019, tenant reimbursements included in rental income amounted to $7,028,808 and $4,857,794, respectively. The Company recognizes rental income from tenants under operating leases on a straight-line basis over the noncancelable term of the lease when collectability of such amounts is reasonably assured. Recognition of rental income on a straight-line basis includes the effects of rental abatements, lease incentives and fixed and determinable increases in lease payments over the lease term. If the lease provides for tenant improvements, management of the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) 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. Tenant reimbursements of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period the expenses are incurred and presented gross if the Company is the primary obligor and, with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. In instances where the operating lease agreement has an early termination option, the termination penalty is based on a predetermined termination fee or based on the unamortized tenant improvements and leasing commissions. The Company evaluates the collectability of rents and other receivables on a regular basis based on factors including, among others, payment history, credit rating, the asset type, and current economic conditions. If the Company’s evaluation of these factors indicates it may not recover the full value of the receivable, it provides an allowance against the portion of the receivable that it estimates may not be recovered. This analysis requires the Company to determine whether there are factors indicating a receivable may not be fully collectible and to estimate the amount of the receivable that may not be collected. Gain or Loss on Sale of Real Estate Property The Company recognizes gain or loss on sale of real estate property when the Company has executed a contract for sale of the property, transferred controlling financial interest in the property to the buyer and determined that it is probable that the Company will collect substantially all of the consideration for the property. The Company's real estate property sale transactions for the year ended December 31, 2020 met these criteria at closing. Operating results of the property that is sold remains in continuing operations, and any associated gain or loss from the disposition is included in gain or loss on sale of real estate investments in the Company’s accompanying consolidated statements of operations. Bad Debts and Allowances for Tenant and Deferred Rent Receivables The Company's determination of the adequacy of its allowances for tenant receivables includes a binary assessment of whether or not the amounts due under a tenant’s lease agreement are probable of collection. For such amounts that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the lease term. For such amounts that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. In addition, for tenant and deferred rent receivables deemed probable of collection, the Company also may record an allowance under other authoritative GAAP depending upon the Company's evaluation of the individual receivables, specific credit enhancements, current economic conditions, and other relevant factors. Such allowances are recorded as increases or decreases through rental income in the Company's consolidated statements of operations. With respect to tenants in bankruptcy, management makes 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 allowance 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. Advertising Costs The Company incurred advertising costs charged to general and administrative expenses for the year ended December 31, 2020 aggregating $607,787. In 2019, the advertising costs relating to the Offerings were paid by the Former Advisor through September 30, 2019. These amounts were reimbursed to the Former Advisor as organizational and offering costs to the extent they did not exceed the 3% limit as further discussed in Note 9 Income Taxes The Company elected to be taxed as a REIT for U.S. federal income tax purposes under Section 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), beginning with its taxable year ended December 31, 2016. The Company expects to operate in a manner that will allow it to continue to qualify as a REIT for U.S. federal income tax purposes. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including meeting various tests regarding the nature of the Company's assets and income, the ownership of the Company's outstanding stock and distribution of at least 90% of the Company’s annual REIT taxable income to its 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 U.S. federal income tax to the extent it distributes qualifying dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. 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 U.S. 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. The Company has concluded that there are no significant uncertain tax positions requiring recognition in its consolidated financial statements. Neither the Company nor its subsidiaries has been assessed material interest or penalties by any major tax jurisdictions. The Company’s evaluations were performed for the tax years ended December 31, 2020 and 2019. As of December 31, 2020, the returns for calendar years 2016, 2017, 2018 and 2019 remain subject to examination by major tax jurisdictions. Other Comprehensive Loss For the years ended December 31, 2020 and 2019, other comprehensive loss is the same as net loss. Per Share Data The Company reports a dual presentation of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted EPS uses the treasury stock method or the if-converted method, where applicable, to compute for the potential dilution that would occur if dilutive securities or commitments to issue common stock were exercised. Diluted EPS is the same as Basic EPS for the years ended December 31, 2020 and 2019 as the Company had a net loss for both years. As of both December 31, 2020 and 2019, there were 657,949.5 Class M OP Units and 56,029 Class P OP Units, respectively, that were convertible to Class C OP Units (defined below) at a conversion ratio of 1.6667 3 Note 3 1 The Company has presented the basic and diluted net loss per share amounts on the accompanying consolidated statements of operations for Class C and Class S share classes as a combined common share class. Application of the two-class method for allocating net loss in accordance with the provisions of ASC 260, Earnings per Share Distributions declared per share of Class C common stock were $ 1.46 2.11 3 1.46 2.11 3 Fair Value Measurements and Disclosures Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value for certain financial instruments is derived using a combination of market quotes, pricing models, and other valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value: Cash and cash equivalents; restricted cash; tenant receivables; prepaid expenses and other assets; accounts payable, accrued and other liabilities; and due to affiliates Derivative instruments Goodwill and Intangible Assets Unsecured credit facility Mortgage notes payable Related party transactions Note 9 Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Cash and cash equivalents are stated at cost, which approximates fair value. The Company’s cash and cash equivalents balance may exceed federally insurable limits. The Company mitigates this risk by depositing funds with major financial institutions; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. Restricted Cash Restricted cash is comprised of funds which are restricted for use as required by certain lenders in conjunction with an acquisition or debt financing and for on-site and tenant improvements or property taxes. Restricted cash as of December 31, 2020 and 2019 amounted to $129,118 and $113,362, respectively. Pursuant to lease agreements, the Company has obligations to pay for $60,598 and $98,329 in site and tenant improvements to be incurred by tenants as of December 31, 2020 and 2019, respectively, including a 72.7% share of the tenant improvements for the Santa Clara property. At December 31, 2020 and 2019, the Company’s restricted cash held to fund these improvements totaled $92,684 and $92,684, respectively. As of December 31, 2020 and 2019, the Company also held restricted cash of $36,434 and $20,678 to fund an impounded property tax. Real Estate Investments Real Estate Acquisition Valuation The Company records acquisitions that meet the definition of a business as a business combination. If the acquisition does not meet the definition of a business, the Company records the acquisition as an asset acquisition. Under both methods, all assets acquired and liabilities assumed are measured based on their acquisition-date fair values. There were no real estate acquisitions during 2020. All real estate acquisitions in 2019 were treated as asset acquisitions. Transaction costs that are related to a business combination are charged to expense as incurred. Transaction costs that are related to an asset acquisition are capitalized as incurred. The Company assesses the acquisition date fair values of all tangible assets, identifiable intangibles, and assumed liabilities using methods similar to those used by independent appraisers, generally utilizing a discounted cash flow analysis that applies appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining noncancelable term of above-market in-place leases plus any extended term for any leases with below-market renewal options. The Company amortizes any recorded above-market or below-market lease values as a reduction or increase, respectively, to rental income over the remaining noncancelable terms of the respective lease, including any below-market renewal periods. The Company estimates the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease-up periods, considering current market conditions. In estimating carrying costs, the Company generally includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease up periods. The Company amortizes the value of tenant origination and absorption costs to depreciation and amortization expense over the remaining term of the respective lease. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property-operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, and the number of years the property will be held for investment. Therefore, the Company classifies these inputs as Level 3 inputs. The use of inappropriate assumptions would result in an incorrect valuation of the Company’s acquired tangible assets, identifiable intangibles and assumed liabilities, which would impact the amount of the Company’s net income (loss). Depreciation and Amortization Real estate costs related to the acquisition and improvement of properties are capitalized and depreciated or amortized over the expected useful life of the asset on a straight-line basis. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset and are expensed as incurred. Significant replacements and betterments are capitalized. The Company anticipates the estimated useful lives of its assets by class to be generally as follows: ● Buildings 10 - 48 years ● Site improvements Shorter of 15 years or remaining lease term ● Tenant improvements Shorter of 15 years or remaining lease term ● Tenant origination and absorption costs, and above-/below-market lease intangibles Remaining lease term Impairment of Investment in Real Estate Properties The Company regularly monitors events and changes in circumstances that could indicate that the carrying amounts of real estate assets may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of real estate assets may not be recoverable, management assesses whether the carrying value of the assets will be recovered through the future undiscounted operating cash flows expected from the use of and eventual disposition of the property. If, based on the analysis, the Company does not believe that it will be able to recover the carrying value of the asset, the Company records an impairment charge to the extent the carrying value exceeds the estimated fair value of the asset. As more fully discussed in Note 4 Leasing Costs Upon adoption of Topic 842, the Company elected to apply the package of practical expedients provided and did not reassess the following as of January 1, 2019: (1) whether any expired or existing contracts are leases or contain leases; (2) the lease classification for any expired or existing leases; and (3) initial direct costs for any existing leases. Under Topic 842, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, beginning January 1, 2019, the Company no longer capitalizes internal leasing costs and third-party legal leasing costs and instead charges these costs to expense as incurred. These expenses are included in legal leasing costs under property expenses in the Company's consolidated statements of operations. The election of the package of practical expedients described above permits the Company to continue to account for its leases that commenced before January 1, 2019 under the previously existing lease accounting guidance for the remainder of their lease terms, and to apply the new lease accounting guidance to leases entered into or acquired commencing or modified after January 1, 2019. Real Estate Investments Held for Sale The Company considers a real estate investment to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate investment held for sale, net” and “assets related to real estate investment held for sale,” respectively, in the accompanying consolidated balance sheets. Mortgage notes payable and other liabilities related to real estate investments held for sale are classified as “mortgage notes payable related to real estate investments held for sale, net” and “liabilities related to real estate investments held for sale,” respectively, in the accompanying consolidated balance sheets. Real estate investments classified as held for sale are no longer depreciated and are reported at the lower of their carrying value or their estimated fair value less estimated costs to sell. Operating results of properties that were classified as held for sale in the ordinary course of business are included in continuing operations in the Company’s accompanying consolidated statements of operations. Unconsolidated Investments The Company accounts for investments in entities over which the Company has the ability to exercise significant influence under the equity method of accounting. Under the equity method of accounting, an investment is initially recognized at cost and is subsequently adjusted to reflect the Company’s share of earnings or losses of the investee. The investment is also increased for additional amounts invested and decreased for any distributions received from the investee. Equity method investments are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the investment might not be recoverable. If an equity method investment is determined to be other-than-temporarily impaired, the investment is reduced to fair value and an impairment charge is recorded as a reduction to earnings. Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. The Company evaluates goodwill and other intangible assets for possible impairment in accordance with ASC 350, Intangibles–Goodwill and Other In assessing goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macro-economic, industry-specific and company-specific factors. These factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of such reporting unit is less than its carrying amount, then a quantitative analysis is unnecessary. However, if the Company concludes otherwise, or if it elects to bypass the qualitative analysis, then it is required to perform a quantitative analysis that compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, a goodwill impairment loss is recognized for the lesser of: (a) the amount that the carrying amount of a reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to that reporting unit. Intangible assets consist of purchased customer-related intangible assets, marketing related intangible assets, developed or acquired technology and other intangible assets. Intangible assets are amortized over their estimated useful lives using the straight-line method ranging from three years to five years. No significant residual value is estimated for intangible assets. An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. The Company evaluates long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. As further discussed in Note 3 The Company conducted its annual impairment analysis as of December 31, 2020 using the qualitative factors discussed above and determined that no additional impairments to goodwill or intangible assets were necessary. Deferred Financing Costs Deferred financing costs represent commitment fees, financing coordination fees paid to the Former Advisor, mortgage loan and line of credit fees, legal fees, and other third-party costs associated with obtaining financing and are presented on the Company's balance sheet as a direct deduction from the carrying value of the associated debt liabilities. These costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. Unamortized deferred financing costs related to revolving credit facilities are presented as an asset in periods where there are no outstanding borrowings under the facility. Derivative Instruments The Company enters into derivative instruments for risk management purposes to hedge its exposure to cash flow variability caused by changing interest rates on its variable rate mortgage notes payable. The Company does not enter into derivatives for speculative purposes. The Company records these derivative instruments at fair value on the accompanying consolidated balance sheet. The Company’s mortgage derivative instruments do not meet the hedge accounting criteria and therefore the changes in the fair value are recorded as gains or losses on derivative instruments in the accompanying statement of operations. The gain or loss is included in interest expense. The Company enters into interest rate swaps as a fixed rate payer to mitigate its exposure to rising interest rates on its variable rate notes payable. The value of interest rate swaps is primarily impacted by interest rates, market expectations about interest rates, and the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of the fixed rate payer position and decrease the value of the variable rate payer position. As the remaining life of the interest rate swap decreases, the value of both positions will generally move towards zero. Related Party Transactions The Company recorded all related party fee expense as incurred, subject to certain limitations described in the Company’s Advisory Agreement (s |
REAL ESTATE INVESTMENTS, NET (Q
REAL ESTATE INVESTMENTS, NET (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Real Estate [Abstract] | ||
REAL ESTATE INVESTMENTS, NET | NOTE 3. REAL ESTATE INVESTMENTS, NET As of June 30, 2021, the Company’s real estate investment portfolio consisted of 38 operating properties located in 14 states comprised of: 12 retail properties, 14 office properties and 12 industrial properties, including one industrial property classified as held for sale and an approximate 72.7% undivided TIC Interest in an industrial property in Santa Clara, California, not reflected in the table below, but discussed in Note 4. The following table provides summary information regarding the Company’s operating properties as of June 30, 2021: Property Location Acquisition Date Property Type Land, Buildings and Improvements Tenant Origination and Absorption Costs Accumulated Depreciation and Amortization Total Investment in Real Estate Property, Net Accredo Health Orlando, FL 6/15/2016 Office $ 9,855,847 $ 1,269,350 $ (2,444,918 ) $ 8,680,279 Dollar General Litchfield, ME 11/4/2016 Retail 1,281,812 116,302 (186,127 ) 1,211,987 Dollar General Wilton, ME 11/4/2016 Retail 1,543,776 140,653 (238,203 ) 1,446,226 Dollar General Thompsontown, PA 11/4/2016 Retail 1,199,860 106,730 (178,835 ) 1,127,755 Dollar General Mt. Gilead, OH 11/4/2016 Retail 1,174,188 111,847 (171,462 ) 1,114,573 Dollar General Lakeside, OH 11/4/2016 Retail 1,112,872 100,857 (175,973 ) 1,037,756 Dollar General Castalia, OH 11/4/2016 Retail 1,102,086 86,408 (170,976 ) 1,017,518 Northrop Grumman Melbourne, FL 3/7/2017 Office 12,382,991 1,469,737 (3,363,521 ) 10,489,207 exp US Services Maitland, FL 3/27/2017 Office 6,056,668 388,248 (945,261 ) 5,499,655 Harley (1) Bedford, TX 4/13/2017 Retail 12,947,054 — (1,196,054 ) 11,751,000 Wyndham Summerlin, NV 6/22/2017 Office 10,406,483 669,232 (1,347,468 ) 9,728,247 Williams Sonoma Summerlin, NV 6/22/2017 Office 8,079,612 550,486 (1,214,232 ) 7,415,866 Omnicare Richmond, VA 7/20/2017 Industrial 7,262,747 281,442 (954,774 ) 6,589,415 EMCOR Cincinnati, OH 8/29/2017 Office 5,960,610 463,488 (693,863 ) 5,730,235 Husqvarna Charlotte, NC 11/30/2017 Industrial 11,840,200 1,013,948 (1,292,198 ) 11,561,950 AvAir Chandler, AZ 12/28/2017 Industrial 27,357,899 — (2,458,171 ) 24,899,728 3 M DeKalb, IL 3/29/2018 Industrial 14,762,819 2,356,361 (4,099,258 ) 13,019,922 Cummins Nashville, TN 4/4/2018 Office 14,465,491 1,536,998 (2,549,219 ) 13,453,270 Northrop Grumman Parcel Melbourne, FL 6/21/2018 Land 329,410 — — 329,410 Texas Health Dallas, TX 9/13/2018 Office 6,976,703 713,221 (829,997 ) 6,859,927 Bon Secours Richmond, VA 10/31/2018 Office 10,388,751 800,356 (1,204,744 ) 9,984,363 Costco Issaquah, WA 12/20/2018 Office 27,330,797 2,765,136 (3,305,667 ) 26,790,266 Taylor Fresh Foods Yuma, AZ 10/24/2019 Industrial 34,194,369 2,894,017 (2,257,859 ) 34,830,527 Levins Sacramento, CA 12/31/2019 Industrial 4,429,390 221,927 (330,913 ) 4,320,404 Dollar General Bakersfield, CA 12/31/2019 Retail 4,899,714 261,630 (220,698 ) 4,940,646 Labcorp San Carlos, CA 12/31/2019 Industrial 9,672,174 408,225 (306,481 ) 9,773,918 GSA (MSHA) Vacaville, CA 12/31/2019 Office 3,112,076 243,307 (207,772 ) 3,147,611 PreK Education San Antonio, TX 12/31/2019 Retail 12,447,287 555,767 (899,142 ) 12,103,912 Dollar Tree Morrow, GA 12/31/2019 Retail 1,320,367 73,298 (106,366 ) 1,287,299 Solar Turbines San Diego, CA 12/31/2019 Office 7,133,241 284,026 (507,486 ) 6,909,781 Wood Group San Diego, CA 12/31/2019 Industrial 9,731,220 539,633 (742,040 ) 9,528,813 ITW Rippey El Dorado, CA 12/31/2019 Industrial 7,071,143 304,387 (456,010 ) 6,919,520 Dollar General Big Spring, TX 12/31/2019 Retail 1,281,683 76,351 (76,453 ) 1,281,581 Gap Rocklin, CA 12/31/2019 Office 8,378,276 360,377 (718,960 ) 8,019,693 L3Harris San Diego, CA 12/31/2019 Industrial 11,631,857 454,035 (706,233 ) 11,379,659 Sutter Health Rancho Cordova, CA 12/31/2019 Office 29,555,055 1,616,610 (1,620,523 ) 29,551,142 Walgreens Santa Maria, CA 12/31/2019 Retail 5,223,442 335,945 (199,441 ) 5,359,946 $ 343,899,970 $ 23,570,335 $ (38,377,298 ) $ 329,093,007 (1) Reclassified to real estate investment held for investment and use during the second quarter of 2021 from real estate held for sale beginning September 30, 2020 (see detailed discussion below). Impairment Charges During late March 2020, the Company learned that there would be a substantial impact on the commercial real estate market and specifically on fitness centers such as the Company's property leased at that time to 24 Hour Fitness USA, Inc. (“24 Hour Fitness”) due to the COVID-19 pandemic and the requirement of an indefinite and potentially extended period of store closures. On March 31, 2020, the Company received written notice from 24 Hour Fitness that due to circumstances beyond its control, including the response to the COVID-19 pandemic and directives and mandates of various governmental authorities affecting the Las Vegas, Nevada 24 Hour Fitness store leased from the Company, it would not make the April 2020 rent payment. Despite negotiations with the tenant, no further rent payments were received and on June 15, 2020, the Company received written notice that the lease was formally rejected in connection with 24 Hour Fitness' Chapter 11 bankruptcy proceeding and the premises were surrendered to the Company's subsidiary. The lender on the property agreed to temporarily reduce its $32,000 monthly mortgage payment by $8,000 from May through August 2020 and the Company's special purpose subsidiary determined that if it was unable to secure a replacement tenant, then it would consider allowing the lender to foreclose on, and take possession of, the property. As such, the Company concluded that it was necessary to record an impairment charge to reduce the net book value of the property to its estimated fair value. In addition, the Company determined that the effects of the COVID-19 pandemic on the overall economy and commercial real estate market would also have negative impacts on the Company's ability to re-lease two vacant properties, the property formerly leased to Dinan Cars located in Morgan Hill, CA through January 31, 2020 and the property leased to Dana, but unoccupied, located in Cedar Park, Texas. Based on an evaluation of the value of these properties, the Company determined that impairment charges were required during the three months ended March 31, 2020 to reflect the reduction in value due to the uncertainty regarding leasing or sale prospects. During the three months ended March 31, 2020, the Company recorded impairment charges aggregating $9,157,068, based on the estimated fair values of the aforementioned real estate properties. During the three months ended June 30, 2020, the Company recorded an additional impairment charge of $349,457 related to its property located in Lake Elsinore, CA and leased to Rite Aid through February 29, 2028. The Company determined that the impairment charge was required, representing the excess of the property's carrying value over the property's estimated sale price less estimated selling costs for the subsequent sale. The aggregate impairment charges of $9,157,068 represented approximately 2.2% of the Company’s total investments in real estate property before impairments as of March 31, 2020 and the impairment charge of $349,457 represented approximately 0.1% of the Company’s total investments in real estate property before impairments as of June 30, 2020. The properties formerly leased by Rite Aid, Dinan Cars, 24 Hour Fitness and Dana were sold in August, October and December 2020 and July 2021, respectively. There were no impairment charges recorded during the three and six months ended June 30, 2021. The details of the Company's real estate impairment charges for the three and six months ended June 30, 2020 were as follows: Property Location Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Rite Aid Lake Elsinore, CA $ 349,457 $ 349,457 Dana Cedar Park, TX — 2,184,395 24 Hour Fitness Las Vegas, NV — 5,664,517 Dinan Cars Morgan Hill, CA — 1,308,156 Total $ 349,457 $ 9,506,525 Acquisitions The Company did not acquire any real estate properties during the three and six months ended June 30, 2021 or during the three and six months ended June 30, 2020. See Note 12 for the description of a property leased to Raising Cane’s which the Company acquired in July 2021. Dispositions There were no disposals of properties during the three months ended June 30, 2021 nor during the three and six months ended June 30, 2020. The Company sold the following properties during the first quarter of 2021: Property Location Disposition Date Property Type Rentable Square Feet Contract Sale Price Gain on Sale Chevron Gas Station Roseville, CA 1/7/2021 Retail 3,300 $ 4,050,000 $ 228,769 EcoThrift Sacramento, CA 1/29/2021 Retail 38,536 5,375,300 51,415 Chevron Gas Station San Jose, CA 2/12/2021 Retail 1,060 4,288,888 9,458 Total 42,896 $ 13,714,188 $ 289,642 On January 7, 2021, the Company completed the sale of its Roseville, California retail property, which was leased to the operator of a Chevron gas station, for $4,050,000, which generated net proceeds of $3,914,909 after payment of commissions and closing costs. On January 29, 2021, the Company completed the sale of its Sacramento, California retail property, which was leased to EcoThrift, for $5,375,300, which generated net proceeds of $2,684,225 after repayment of the existing mortgage, commissions and closing costs. On February 12, 2021, the Company completed the sale of its San Jose, California retail property, which was leased to the operator of a Chevron gas station, for $4,288,888, which generated net proceeds of $4,054,327 after payment of commissions and closing costs. Asset Concentration The Company held no real estate property with a net book value that is greater than 10% of its total assets as of June 30, 2021 or December 31, 2020. Revenue Concentration No tenant represented the source of 10% of total revenues during the three and six months ended June 30, 2021 or during the three and six months ended June 30, 2020. Operating Leases The Company’s real estate properties are primarily leased to tenants under net leases for which terms and expirations vary. The Company monitors the credit of all tenants to stay abreast of any material changes in credit quality. The Company monitors tenant credit by (1) reviewing the credit ratings of tenants (or their parent companies or lease guarantors) that are rated by nationally recognized rating agencies; (2) reviewing financial statements and related metrics and information that are publicly available or that are required to be provided pursuant to the lease; (3) monitoring news reports and press releases regarding the tenants (or their parent companies or lease guarantors), and their underlying business and industry; and (4) monitoring the timeliness of rent collections. During the first four months of 2020, the Company paid an aggregate of $990,000 in lease incentives to cancel certain termination options related to two leases with Walgreens for its Santa Maria, California and Stockbridge, Georgia properties, resulting in extension of the leases for approximately 10 years each. The Stockbridge property was sold on August 27, 2020. These costs were capitalized and are amortized over the period of the extension for the Santa Maria property and were charged to cost of sale for the Stockbridge property in August 2020. During the three months ended June 30, 2021, the tenant in the Company's PreK Education retail property in San Antonio, Texas exercised its option to extend its lease term for eight years from the original termination of July 31, 2021 to July 31, 2029 with an increase in monthly rent. The terms of the original lease required the Company to pay a $2,000,000 term completion incentive upon exercise of the option and the tenant agreed to defer the timing of this payment to no later than January 31, 2022. The deferred lease incentive is presented under prepaid and other assets and the obligation is included in accounts payable, accrued and other liabilities in the Company's balance sheet as of June 30, 2021. As of June 30, 2021, the future minimum contractual rent payments due to the Company under the Company’s non-cancellable operating leases, including lease amendments executed through August 13, 2021 and excluding rents due related to the real estate investments held for sale, are as follows: July through December 2021 $ 13,219,545 2022 25,533,893 2023 22,070,671 2024 21,588,111 2025 18,369,437 2026 11,524,427 Thereafter 42,329,568 $ 154,635,652 Lease Intangible Assets, Net As of June 30, 2021, the Company’s lease intangible assets were as follows: Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles Cost $ 23,570,335 $ 1,128,549 $ (15,097,132 ) Accumulated amortization (11,210,646 ) (372,620 ) 3,266,545 Net amount $ 12,359,689 $ 755,929 $ (11,830,587 ) The intangible assets acquired in connection with the acquisitions have a weighted average amortization period of approximately 9.4 As of June 30, 2021, the amortization of intangible assets for the nine months ending December 31, 2021 and for each year of the next five years and thereafter is expected to be as follows: Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles July through December 2021 $ 1,609,387 $ 64,909 $ (727,614 ) 2022 2,682,533 129,823 (1,217,029 ) 2023 1,805,532 127,174 (921,169 ) 2024 1,689,428 122,543 (917,750 ) 2025 1,311,545 115,996 (917,750 ) 2026 601,734 78,557 (912,347 ) Thereafter 2,659,530 116,927 (6,216,928 ) $ 12,359,689 $ 755,929 $ (11,830,587 ) Weighted-average remaining amortization period 7.1 6.8 11.9 Real Estate Investments Held For Sale As a result of the COVID-19 pandemic discussed in Note 1, starting during the second quarter of 2020, the Company deemed it necessary to sell certain of its real estate investment properties to generate funds for share repurchases and certain debt obligations. During 2020, the Company identified nine real estate properties (eight retail properties and one industrial property) as held for sale. During the second half of 2020, five of the nine properties (four retail properties and one industrial property) were sold. Of the four remaining retail properties held for sale as of December 31, 2020, the Company sold three retail properties during the first quarter of 2021: the EcoThrift property and the two Chevron properties (see Dispositions above for more details). The Harley Davidson retail property, which was the only property held for sale as of March 31, 2021, was reclassified as held for investment and use during the second quarter of 2021 (see discussion in Change in Plan of Sale During the second quarter of 2021, the Company identified and reclassified the industrial property located in Cedar Park, Texas leased to Dana Incorporated as real estate investment held for sale. This unoccupied property was subsequently sold on July 7, 2021 (see Note 12 for more details). The following table summarizes the major components of assets and liabilities related to real estate investments held for sale as of June 30, 2021 (Dana property) and December 31, 2020 (Harley Davidson, EcoThrift and two Chevron properties): June 30, 2021 December 31, 2020 Assets related to real estate investments held for sale: Land, buildings and improvements $ 6,802,876 $ 25,675,459 Tenant origination and absorption costs 531,439 554,788 Accumulated depreciation and amortization (1,958,569 ) (1,644,508 ) Real estate investments held for sale, net 5,375,746 24,585,739 Other assets, net 671,265 1,079,361 Total assets related to real estate investments held for sale: $ 6,047,011 $ 25,665,100 Liabilities related to real estate investments held for sale: Mortgage notes payable, net $ 4,381,426 $ 9,088,438 Other liabilities, net 227,433 801,337 Total liabilities related to real estate investments held for sale: $ 4,608,859 $ 9,889,775 The following table summarizes the major components of rental income, expenses and impairment related to real estate investments held for sale as of June 30, 2021 (the property leased to Dana) and 2020 (the property leased to Island Pacific Supermarket located in Elk Grove, CA, the property leased to Rite Aid located in Lake Elsinore, CA, the property leased to Walgreens located in Stockbridge, GA and the property previously leased to Dinan Cars located in Morgan Hill, CA), which were included in continuing operations for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total revenues $ 342,198 $ 312,060 $ 716,160 $ 1,480,909 Expenses: Interest expense 63,207 83,658 138,629 221,022 Depreciation and amortization 49,108 185,658 122,769 375,575 Other expenses 78,857 101,131 145,797 221,811 Impairment — 349,457 — 1,657,613 Total expenses 191,172 719,904 407,195 2,476,021 Net income (loss) $ 151,026 $ (407,844 ) $ 308,965 $ (995,112 ) Change in Plan of Sale On September 30, 2020, the Company reclassified the Harley Davidson property’s net book value (“NBV”) of $12,010,919 to real estate held for sale and suspended recording depreciation for the property as of that date. On December 31, 2020, the Company recorded an impairment loss of $632,233 based on the expected net proceeds of sale of the property of $12,117,500 compared to the property's NBV combined with the outstanding straight-line rent receivable balance. Following unsuccessful efforts to sell the property at a price which would be acceptable to the Company, the Company decided to withdraw its decision to sell the property during June 2021 and reclassified the Harley Davidson property to real estate investment held for investment and use. At the time of the decision to reclassify the property to real estate investment held for investment and use in June 2021, the carrying value of the property would have been $11,779,687 if continuously depreciated since September 30, 2020. The fair value of the property as of the June 2021 determination was $11,860,000, based on management’s value for the property in the June 30, 2021 NAV analysis (the most recent valuation). As provided by ASC 360-10, since the adjusted carrying value of the property of $11,779,687 was lower than its fair value of $11,860,000, the Company adjusted the net book value of the property to its adjusted carrying value of $11,779,687. The recording of the property at its adjusted carrying value resulted in an adjustment to reduce the impairment loss recorded as of December 31, 2020 by $400,999 during the three months ended June 30, 2021. | NOTE 4. REAL ESTATE INVESTMENTS As of December 31, 2020, the Company’s real estate investment portfolio consisted of (i) 36 operating properties located in 14 states (including 14 operating properties of the original 20 operating properties acquired in connection with the Merger on December 31, 2019) and comprised of: 11 retail properties, 14 office properties and 11 industrial properties, (ii) one parcel of land, which currently serves as an easement to one of the Company’s office properties and (iii) a 72.7% undivided TIC Interest in an office property in Santa Clara, California, not reflected in the table below, but discussed in Note 5 The following table provides summary information regarding the Company’s real estate portfolio as of December 31, 2020: Property Location Acquisition Date Property Type Land, Buildings and Improvements Tenant Origination and Absorption Costs Accumulated Depreciation and Amortization Total Investment in Real Estate Property, Net Accredo Health Orlando, FL 6/15/2016 Office $ 9,855,847 $ 1,269,351 $ (2,221,380 ) $ 8,903,818 Dollar General Litchfield, ME 11/4/2016 Retail 1,281,812 116,302 (166,006 ) 1,232,108 Dollar General Wilton, ME 11/4/2016 Retail 1,543,776 140,653 (212,451 ) 1,471,978 Dollar General Thompsontown, PA 11/4/2016 Retail 1,199,860 106,730 (159,501 ) 1,147,089 Dollar General Mt. Gilead, OH 11/4/2016 Retail 1,174,188 111,847 (152,925 ) 1,133,110 Dollar General Lakeside, OH 11/4/2016 Retail 1,112,872 100,857 (156,949 ) 1,056,780 Dollar General Castalia, OH 11/4/2016 Retail 1,102,086 86,408 (152,492 ) 1,036,002 Dana Cedar Park, TX 12/27/2016 Industrial 6,802,876 531,439 (1,835,800 ) 5,498,515 Northrop Grumman Melbourne, FL 3/7/2017 Office 12,382,991 1,341,199 (2,968,985 ) 10,755,205 exp US Services Maitland, FL 3/27/2017 Office 6,056,668 388,248 (833,278 ) 5,611,638 Wyndham Summerlin, NV 6/22/2017 Office 10,406,483 669,232 (1,170,222 ) 9,905,493 Williams Sonoma Summerlin, NV 6/22/2017 Office 8,079,612 550,486 (1,058,455 ) 7,571,643 Omnicare Richmond, VA 7/20/2017 Industrial 7,262,747 281,442 (832,474 ) 6,711,715 EMCOR Cincinnati, OH 8/29/2017 Office 5,960,610 463,488 (604,163 ) 5,819,935 Husqvarna Charlotte, NC 11/30/2017 Industrial 11,840,200 1,013,948 (1,113,651 ) 11,740,497 AvAir Chandler, AZ 12/28/2017 Industrial 27,357,900 — (2,111,134 ) 25,246,766 3M DeKalb, IL 3/29/2018 Industrial 14,762,819 2,356,361 (3,476,588 ) 13,642,592 Cummins Nashville, TN 4/4/2018 Office 14,465,491 1,536,998 (2,151,938 ) 13,850,551 Northrop Grumman Parcel Melbourne, FL 6/21/2018 Land 329,410 — — 329,410 Texas Health Dallas, TX 9/13/2018 Office 6,976,703 713,221 (681,341 ) 7,008,583 Bon Secours Richmond, VA 10/31/2018 Office 10,388,751 800,356 (978,335 ) 10,210,772 Costco Issaquah, WA 12/20/2018 Office 27,330,797 2,765,136 (2,654,329 ) 27,441,604 Taylor Fresh Foods Yuma, AZ 10/24/2019 Industrial 34,194,369 2,894,017 (1,597,022 ) 35,491,364 Levins Sacramento, CA 12/31/2019 Industrial 4,429,390 221,927 (220,609 ) 4,430,708 Dollar General Bakersfield, CA 12/31/2019 Retail 4,899,714 261,630 (147,132 ) 5,014,212 PMI Preclinical San Carlos, CA 12/31/2019 Industrial 9,672,174 408,225 (204,321 ) 9,876,078 GSA (MSHA) Vacaville, CA 12/31/2019 Office 3,112,076 243,307 (138,515 ) 3,216,868 PreK Education San Antonio, TX 12/31/2019 Retail 12,447,287 447,927 (599,428 ) 12,295,786 Dollar Tree Morrow, GA 12/31/2019 Retail 1,320,367 73,298 (70,911 ) 1,322,754 Solar Turbines San Diego, CA 12/31/2019 Office 7,133,241 284,026 (338,232 ) 7,079,035 Wood Group San Diego, CA 12/31/2019 Industrial 9,731,220 466,293 (565,017 ) 9,632,496 ITW Rippey El Dorado Hills, CA 12/31/2019 Industrial 7,071,143 304,387 (303,219 ) 7,072,311 Dollar General Big Spring, TX 12/31/2019 Retail 1,281,683 76,351 (50,969 ) 1,307,065 Gap Rocklin, CA 12/31/2019 Office 8,378,276 360,377 (479,306 ) 8,259,347 L-3 Communications Carlsbad, CA 12/31/2019 Industrial 11,631,857 454,035 (470,823 ) 11,615,069 Sutter Health Rancho Cordova, CA 12/31/2019 Office 29,555,055 1,616,610 (1,080,349 ) 30,091,316 Walgreens Santa Maria, CA 12/31/2019 Retail 5,223,442 335,945 (132,961 ) 5,426,426 $ 337,755,793 $ 23,792,057 $ (32,091,211 ) $ 329,456,639 Impairment Charges During late March 2020, the Company learned that there would be a substantial impact on the commercial real estate market and specifically on fitness centers due to the COVID-19 pandemic and the requirement of an indefinite and potentially extended period of store closures. On March 31, 2020, the Company received written notice from 24 Hour Fitness USA, Inc. (“24 Hour Fitness”) that due to circumstances beyond its control, including the response to the COVID-19 pandemic and directives and mandates of various governmental authorities, the Las Vegas, Nevada 24 Hour Fitness store leased from the Company had been closed on or about March 17, 2020 and remained closed as of the date of the tenant's notice. The tenant's notice stated that it would not make the April 2020 rent payment. The Company's special purpose subsidiary, which owns the property, immediately initiated negotiations with the tenant; however, no further rent payments were received and on June 15, 2020, the Company received written notice that the lease was formally rejected in connection with 24 Hour Fitness' Chapter 11 bankruptcy proceeding and the premises were surrendered to the Company's subsidiary. On April 1, 2020, the Company’s special purpose subsidiary initiated negotiations with the lender on the property, and requested a deferral of mortgage payments until the tenant resumed paying rent. The lender did not agree to provide any substantial mortgage relief to the Company's special purpose subsidiary, but agreed to temporarily reduce its $32,000 monthly mortgage payment by $8,000 from May 2020 through August 2020. The Company's special purpose subsidiary determined that if it was unable to secure a replacement tenant, then it would consider allowing the lender to foreclose on, and take possession of, the property. As such, the Company concluded that it was necessary to record an impairment charge to reduce the net book value of the property to its estimated fair value. In addition, the Company determined that the effects of the COVID-19 pandemic on the overall economy and commercial real estate market would also negatively impact the Company's ability to re-lease two vacant properties, the property formerly leased to Dinan Cars through January 31, 2020 located in Morgan Hill, California and the property leased to Dana, but currently unoccupied, located in Cedar Park, Texas. Based on an evaluation of the value of these two properties, the Company determined that impairment charges were required to reflect the reduction in value due to the uncertainty regarding leasing or sale prospects. During the three months ended March 31, 2020, the Company recorded impairment charges aggregating $9,157,068 based on the estimated fair value of the real estate properties discussed above. During the three months ended June 30, 2020 and December 31, 2020, the Company recorded additional impairment charges related to properties held for sale. As of June 30, 2020, the Company recorded an impairment charge of $349,457 related to the property located in Lake Elsinore, California and leased to Rite Aid through February 29, 2028. As of December 31, 2020, the Company recorded an aggregate of $761,100 in impairment charges related to its property located in Bedford, Texas and leased to the operator of a Harley Davidson dealership through April 12, 2032 and its property located in San Jose, California and leased to the operator of a Chevron gas station through May 31, 2025. The impairment charges related to the properties located in Lake Elsinore and San Jose, California reflect the excess of the property's carrying value over the property's sale price less estimated selling costs (see below for discussion of the property sale), while the impairment charge related to the property located in Bedford, Texas pertained to a portion of the Company's straight-line rent receivable for this property which the Company does not expect to recover as a result of the planned sale (see below for discussion of the property classification to held for sale). The aggregated impairment charges of $10,267,625 during the year ended December 31, 2020 represented approximately 2.5% of the Company’s total investments in real estate property as of December 31, 2020. The details of the Company's real estate impairment charges for the year ended December 31, 2020 were as follows: Property Location Year Ended December 31, 2020 Dana Cedar Park, TX $ 2,184,395 24 Hour Fitness Las Vegas, NV 5,664,517 Dinan Cars Morgan Hill, CA 1,308,156 Rite Aid Lake Elsinore, CA 349,457 Harley Davidson Bedford, TX 632,233 Chevron Gas Station San Jose, CA 128,867 $ 10,267,625 Acquisitions: The Company acquired no real estate properties during the year ended December 31, 2020. During the year ended December 31, 2019, the Company acquired the following real estate properties: Property Land Buildings and Improvements Tenant Origination and Absorption Costs Above- Market Lease Intangibles Below-Market Lease Intangibles Total REIT I Property Portfolio: Chevron Gas Station, San Jose $ 3,787,021 $ 267,738 $ 145,577 $ 41,739 $ — $ 4,242,075 Levins 1,404,863 3,024,527 221,927 26,469 — 4,677,786 Chevron Gas Station, Roseville 2,636,663 1,011,908 136,415 24,432 — 3,809,418 Island Pacific Supermarket 676,981 1,883,330 197,495 — (76,351 ) 2,681,455 Dollar General, Bakersfield 1,099,458 3,800,256 261,630 — (41,739 ) 5,119,605 Rite Aid 3,939,724 2,902,365 420,441 186,297 — 7,448,827 PMI Preclinical 4,774,497 4,897,677 408,225 115,036 — 10,195,435 EcoThrift 2,300,717 3,249,509 273,846 — (388,882 ) 5,435,190 GSA (MSHA) 399,062 2,713,014 243,307 — (101,802 ) 3,253,581 PreK San Antonio 963,044 11,484,243 447,927 — (28,504 ) 12,866,710 Dollar Tree 159,829 1,160,538 73,298 10,180 — 1,403,845 Dinan Cars 2,453,420 3,799,237 — — — 6,252,657 Solar Turbines 2,483,960 4,649,281 284,026 — (108,928 ) 7,308,339 Wood Group 3,461,256 6,269,964 392,955 — — 10,124,175 ITW Rippey 787,945 6,283,198 304,387 — — 7,375,530 Dollar General, Big Spring 103,838 1,177,845 76,351 — (127,252 ) 1,230,782 Gap 2,076,754 6,301,522 360,377 — (68,207 ) 8,670,446 L-3 Communications 3,552,878 8,078,979 454,035 — (174,081 ) 11,911,811 Sutter Health 2,443,240 27,111,815 1,616,610 87,549 — 31,259,214 Walgreens 1,832,430 3,391,012 335,945 272,829 — 5,832,216 Total REIT I Property Portfolio 41,337,580 103,457,958 6,654,774 764,531 (1,115,746 ) 151,099,097 Taylor Fresh Foods 4,312,016 29,882,353 2,894,017 — (11,526,976 ) 25,561,410 $ 45,649,596 $ 133,340,311 $ 9,548,791 $ 764,531 $ (12,642,722 ) $ 176,660,507 Purchase price and other acquisition costs $ 176,660,507 Purchase deposit applied (2,000,000 ) Acquisition fees to affiliate related to Taylor Fresh Foods (Note 9) (741,000 ) Acquisition of real estate before financing $ 173,919,507 Capitalized acquisition fee paid to the Former Advisor for a property acquired during the year ended December 31, 2019 is as follows: Property Amount Taylor Fresh Foods $ 741,000 The Company also paid the Former Advisor capitalized acquisition fees of $5,459 during the year ended December 31, 2019 related to additions to real estate investments. During the year ended December 31, 2019, the Company recognized $548,362 of total revenue related to the Taylor Fresh foods property. No revenue was recognized related to the 20 properties acquired in the Merger because the transaction closed on December 31, 2019. The noncancellable lease terms of the properties acquired during the year ended December 31, 2019 were as follows: Property Lease Expiration Chevron Gas Station 5/27/2025 Levins 8/20/2023 Chevron Gas Station 9/30/2025 Island Pacific Supermarket 5/31/2025 Dollar General 7/31/2028 Rite Aid 2/25/2028 PMI Preclinical 10/31/2025 EcoThrift 2/28/2026 GSA (MSHA) 8/24/2026 PreK San Antonio 7/31/2021 Dollar Tree 7/31/2025 Dinan Cars 4/30/2023 Solar Turbines 2/28/2021 Amec Foster 7/31/2021 ITW Rippey 8/1/2022 Dollar General Big Spring 4/30/2030 Gap 2/28/2023 L-3 Communications 4/30/2022 Sutter Health 10/31/2025 Walgreens 2/28/2031 Taylor Fresh Foods 9/30/2033 Dispositions: The Company sold the following properties during the year ended December 31, 2020: Property Location Disposition Date Property Type Rentable Square Feet Contract Sale Price Gain (Loss) on Sale Rite Aid Lake Elsinore, CA 8/3/2020 Retail 17,272 $ 7,250,000 $ (422 ) Walgreens Stockbridge, GA 8/27/2020 Retail 15,120 5,538,462 1,306,768 Island Pacific Supermarket Elk Grove, CA 9/16/2020 Retail 13,963 3,155,000 387,296 Dinan Cars Morgan Hill, CA 10/28/2020 Industrial 27,296 6,100,000 961,836 24 Hour Fitness Las Vegas, NV 12/16/2020 Retail 45,000 9,052,941 1,484,271 118,651 $ 31,096,403 $ 4,139,749 On August 3, 2020, the Company completed the sale of its Lake Elsinore, California retail property which was leased to Rite Aid for $7,250,000, which generated net proceeds of $3,299,016 after repayment of the existing mortgage, commissions and closing costs. Prior to the sale, the Company evaluated the Rite Aid property for impairment and recognized a $349,457 impairment charge during the three months ended June 30, 2020 in order to reduce the carrying value of the property to its estimated net realizable value. On August 27, 2020, the Company completed the sale of its Stockbridge, Georgia retail property which was leased to Walgreens for $5,538,462, which generated net proceeds of $5,296,356 after payment of commissions and closing costs. The mortgage for this property was previously repaid on August 10, 2020 in connection with the refinancing of the Accredo property as discussed in Note 7. On September 16, 2020, the Company completed the sale of its Elk Grove, California retail property which was leased to Island Pacific for $3,155,000, which generated net proceeds of $1,124,016 after repayment of the existing mortgage, commissions and closing costs. On October 28, 2020, the Company completed the sale of its Morgan Hill, California industrial property which was formerly leased to Dinan Cars for $6,100,000, which generated net proceeds of $3,811,580 after repayment of the existing mortgage, commissions and closing costs. Prior to the sale, the Company recognized an impairment charge for $1,308,156 during the three months ended March 31, 2020. On December 16, 2020, the Company completed the sale of its Las Vegas, Nevada retail property which was formerly leased to 24 Hour Fitness for $9,052,941, which is expected to generate net proceeds of $1,324,383 upon collection of the receivable from the buyer and after assignment of the existing mortgage to the buyer, payment of commissions and closing costs, and reserves for tenant improvements and free rent. Prior to the sale, the Company recognized an impairment charge for $5,664,517 during the three months ended March 31, 2020. There were no disposition of properties during the year ended December 31, 2019. Asset Concentration The Company holds no real estate property with a net book value that is greater than 10% of its total assets as of December 31, 2020 and 2019. Revenue Concentration No tenants represented the source of 10% of total revenues during the year ended December 31, 2020. The Company’s revenue concentration based on tenants representing greater than 10% of total revenues for the year ended December 31, 2019 is as follows: 2019 Property and Location Revenue Percentage of Total Revenue AvAir, Chandler, AZ $ 2,670,159 10.9 % Operating Leases The Company’s real estate properties are primarily leased to tenants under net leases for which terms and expirations vary. The Company monitors the credit of all tenants to stay abreast of any material changes in credit quality. The Company monitors tenant credit by (1) reviewing the credit ratings of tenants (or their parent companies or lease guarantors) that are rated by nationally recognized rating agencies; (2) reviewing financial statements and related metrics and information that are publicly available or that are required to be provided pursuant to the lease; (3) monitoring news reports and press releases regarding the tenants (or their parent companies or lease guarantors), and their underlying business and industry; and (4) monitoring the timeliness of rent collections. During the first four months of 2020, the Company paid an aggregate of $990,000 in lease incentives to cancel certain termination options related to two leases with Walgreens for its Santa Maria, California and Stockbridge, Georgia properties, resulting in extension of the leases for approximately 10 years each. The Stockbridge property was sold on August 27, 2020 as discussed above. These costs were capitalized and will be amortized over the period of the extension for the Santa Maria property and were charged to cost of sale for the Stockbridge property. Effective August 1, 2020, the Company executed an amendment to accelerate the termination of the Dana lease from July 31, 2024 to July 31, 2022 in exchange for the right to receive an early termination payment of $1,381,767 due on July 31, 2022 and continued rent payments of $65,000 per month from August 1, 2020 through July 1, 2022. In the event that the Company is able to re-lease or sell the Dana property prior to July 31, 2022, Dana would be obligated to continue paying rent of $65,000 per month through July 1, 2022 or may elect to pay a cash lump sum payment to the Company equal to the net present value of the remaining rent payments. This amendment is a modification of the existing lease for accounting purposes and the revised payment stream, including the early termination payment, is reflected for the balance of the revised lease term on a straight-line basis. As of December 31, 2020, the future minimum contractual rent payments due under the Company’s noncancelable operating leases, including lease amendments executed subsequent to December 31, 2020 and excluding rents due related to real estate investments held for sale, are as follows: 2021 $ 26,761,843 2022 24,418,710 2023 20,157,378 2024 19,674,819 2025 16,456,145 Thereafter 43,827,967 $ 151,296,862 During the first quarter of 2021, the Company entered into additional lease extensions for the properties leased to Northrop Grumman in Melbourne, Florida and two Dollar General properties in Castalia, Ohio and Lakeside, Ohio as further discussed in Note 11- Subsequent Events Intangibles As of December 31, 2020 and 2019, the Company’s intangible assets were as follows: December 31, 2020 December 31, 2019 Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles Tenant Origination and Absorption Above-Market Lease Intangibles Below-Market Lease Intangibles Cost $ 23,792,057 $ 1,128,549 $ (15,163,672 ) $ 27,266,610 $ 1,547,646 $ (15,713,975 ) Accumulated amortization (9,695,960 ) (307,707 ) 2,597,935 (6,005,248 ) (295,912 ) 1,122,616 Net amount $ 14,096,097 $ 820,842 $ (12,565,737 ) $ 21,261,362 $ 1,251,734 $ (14,591,359 ) The intangible assets acquired in connection with these real estate properties have a weighted average amortization period of approximately 9.4 years As of December 31, 2020, amortization of intangible assets for each year of the next five years and thereafter is expected to be as follows: Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles 2021 $ 3,801,383 $ 129,823 $ (1,462,730 ) 2022 2,628,700 129,823 (1,217,076 ) 2023 1,751,653 127,174 (921,169 ) 2024 1,625,159 122,543 (917,750 ) 2025 1,242,973 115,995 (917,750 ) Thereafter 3,046,229 195,484 (7,129,262 ) $ 14,096,097 $ 820,842 $ (12,565,737 ) Weighted-Average Remaining Amortization Period 7.1 years 7.2 years 12.2 years Real Estate Investments Held For Sale As a result of the COVID-19 pandemic discussed in Note 1 During the three months ended June 30, 2020, the Company identified four real estate investment properties as held for sale. These four properties consisted of three retail properties (the property leased to Island Pacific Supermarket through May 30, 2033 located in Elk Grove, California, the property leased to Rite Aid through February 29, 2028 located in Lake Elsinore, California and the property leased to Walgreens through February 28, 2031 located in Stockbridge, Georgia) and one industrial property previously leased to Dinan Cars located in Morgan Hill, California. As discussed above, these four properties were sold during the year ended December 31, 2020. As discussed below, additional properties were identified as held for sale during the third and fourth quarters of 2020. During the three months ended September 30, 2020, the Company determined to sell two additional retail properties (the property leased to the operator of a Harley Davidson dealership through April 12, 2032 located in Bedford, Texas and the property formerly leased to 24 Hour Fitness located in Las Vegas, Nevada). As discussed above, the property formerly leased to 24 Hour Fitness was sold during the year ended December 31, 2020. During the three months ended December 31, 2020, the Company determined to sell three more retail properties (the property leased to Chevron through September 30, 2025 located in Roseville, California; the property leased to EcoThrift through February 26, 2026 located in Sacramento, California; and the property leased to Chevron through May 31, 2025 located in San Jose, California). As of December 31, 2020, the Company has four retail properties held for sale, namely: the Harley Davidson property, the EcoThrift property and the two Chevron properties. The property leased to EcoThrift and the two properties leased to Chevron were sold subsequent to December 31, 2020 (see Note 11 The following table summarizes the major components of assets and liabilities related to real estate investments held for sale as of December 31, 2020: December 31, 2020 Assets related to real estate investments held for sale: Land, buildings and improvements $ 25,675,459 Tenant origination and absorption costs 554,788 Accumulated depreciation and amortization (1,644,508 ) Real estate investments held for sale, net 24,585,739 Other assets, net 1,079,361 Total assets related to real estate investments held for sale: $ 25,665,100 Liabilities related to real estate investments held for sale: Mortgage notes payable, net $ 9,088,438 Other liabilities, net 801,337 Total liabilities related to real estate investments held for sale: $ 9,889,775 The following table summarizes the major components of rental income, expenses and impairment related to real estate investments held for sale as of December 31, 2020, which were included in continuing operations for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Total revenues $ 2,326,058 $ 1,325,265 Expenses: Interest expense 552,246 323,460 Depreciation and amortization 737,278 344,708 Other expenses 352,280 385,282 Impairment of real estate properties 761,100 — Total expenses 2,402,904 1,053,450 Net (loss) income $ (76,846 ) $ 271,815 As discussed in Note 3 |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED ENTITY (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
INVESTMENT IN UNCONSOLIDATED ENTITY | NOTE 4. INVESTMENT IN UNCONSOLIDATED ENTITY The Company’s investment in unconsolidated entity as of June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 The TIC Interest $ 9,987,703 $ 10,002,368 The Company’s income from investment in unconsolidated entity for the three and six months ended June 30, 2021 and 2020, is as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 The TIC Interest $ 74,834 $ 125,658 $ 147,302 $ 146,411 TIC Interest During 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired an approximate 72.7% interest in an industrial property in Santa Clara, California. The remaining approximate 27.3% of undivided interest in the Santa Clara property is held by Hagg Lane II, LLC (an approximate 23.4% interest) and Hagg Lane III, LLC (an approximate 3.9% interest). The manager of both Hagg Lane II, LLC and Hagg Lane III, LLC became a member of the Company's board of directors in December 2019. The Santa Clara property does not qualify as a variable interest entity and consolidation is not required as the Company’s TIC Interest does not control the property. Therefore, the Company accounts for the TIC Interest using the equity method. The Company receives approximately 72.7% of the cash flow distributions and recognizes approximately 72.7% of the results of operations. During the three months ended June 30, 2021 and 2020, the Company received $82,588 and $169,158 in cash distributions, respectively, and $161,967 and $334,189 during the six months ended June 30, 2021 and 2020, respectively. The following is summarized financial information for the Santa Clara property as of June 30, 2021 and December 31, 2020 and for the three and six months ended June 30, 2021 and 2020: June 30, 2021 December 31, 2020 Assets: Real estate investments, net $ 29,406,115 $ 29,906,146 Cash and cash equivalents 786,775 380,774 Other assets 50,041 164,684 Total assets $ 30,242,931 $ 30,451,604 Liabilities: Mortgage note payable, net $ 13,354,714 $ 13,489,126 Below-market lease, net 2,733,780 2,806,973 Other liabilities 111,598 92,777 Total liabilities 16,200,092 16,388,876 Total equity 14,042,839 14,062,728 Total liabilities and equity $ 30,242,931 $ 30,451,604 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total revenues $ 676,936 $ 751,653 $ 1,350,912 $ 1,349,573 Expenses: Interest expense 138,036 140,906 275,642 282,609 Depreciation and amortization 250,015 250,680 500,030 499,898 Other expenses 185,964 187,246 372,652 365,703 Total expenses 574,015 578,832 1,148,324 1,148,210 Net income $ 102,921 $ 172,821 $ 202,588 $ 201,363 | NOTE 5. INVESTMENT IN UNCONSOLIDATED ENTITY The Company’s investment in unconsolidated entity as of December 31, 2020 and 2019 is as follows: December 31, 2020 2019 The TIC Interest $ 10,002,368 $ 10,388,588 As discussed in Note 3, REIT I merged with and into the Company on December 31, 2019. The Company’s income (loss) from investments in unconsolidated entities for the years ended December 31, 2020 and 2019 is as follows: Years Ended December 31, 2020 2019 The TIC Interest $ 296,780 $ 296,691 REIT I — (62,643 ) Total $ 296,780 $ 234,048 The TIC Interest During 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired the approximate 72.7% TIC Interest. The remaining approximate 27.3% undivided interest in the Santa Clara property is held by Hagg Lane II, LLC (an approximate 23.4%) and Hagg Lane III, LLC (an approximate 3.9%). The manager of Hagg Lane II, LLC and Hagg Lane III, LLC became a member of the Company's board of directors in December 2019. The Santa Clara property does not qualify as a variable interest entity and consolidation is not required as the Company's TIC Interest does not control the property. Therefore, the Company accounts for the TIC Interest using the equity method. The property lease expiration date is March 16, 2026 and the lease provides for three five-year renewal options. The Company receives approximately 72.7% of the cash flow distributions and recognizes approximately 72.7% of the results of operations. During the years ended December 31, 2020 and 2019, the Company received $683,000 and $657,435 in cash distributions, respectively. The following is summarized financial information for the Santa Clara property as of and for the years ended December 31, 2020 and 2019: December 31, 2020 2019 Assets: Real estate investments, net $ 29,906,146 $ 30,858,240 Cash and cash equivalents 380,774 275,760 Other assets 164,684 228,770 Total assets $ 30,451,604 $ 31,362,770 Liabilities: Mortgage notes payable, net $ 13,489,126 $ 13,746,635 Below-market lease, net 2,806,973 2,953,360 Other liabilities 92,777 68,587 Total liabilities 16,388,876 16,768,582 Total equity 14,062,728 14,594,188 Total liabilities and equity $ 30,451,604 $ 31,362,770 Years Ended December 31, 2020 2019 Total revenue $ 2,694,874 $ 2,705,126 Expenses: Depreciation and amortization 999,929 993,564 Interest expense 565,778 574,086 Other expenses 721,279 731,044 Total expenses 2,286,986 2,298,694 Net income $ 407,888 $ 406,432 REIT I Prior to the Merger on December 31, 2019, the Company had an approximate 4.8% ownership interest in REIT I. The Company recorded its share of loss of REIT I based on REIT I’s results of operations for the year ended December 31, 2019. During the year ended December 31, 2019, the Company received $372,351 in cash distributions related to its investment in REIT I. The following is REIT I's summarized results of operations for the year ended December 31, 2019: Year Ended December 31, 2019 Total revenue $ 13,132,226 Expenses: Depreciation and amortization 5,787,709 Interest expense 3,425,625 Other expenses 5,342,365 Total expenses 14,555,699 Other income: Gain on sale of real estate investment property, net (1,850,845 ) Loss on debt restructuring 1,964,618 Total other income 113,773 Net loss $ (1,309,700 ) |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET (Q2) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | NOTE 5. GOODWILL AND INTANGIBLE ASSETS, NET Goodwill, Net The changes in carrying value of goodwill as of June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 December 31, 2020 Beginning balance $ 17,320,857 $ 50,588,000 Impairment of goodwill for the three and the 12 months period ended, respectively — (33,267,143 ) Ending balance $ 17,320,857 $ 17,320,857 The current COVID-19 pandemic in the United States and globally, and the magnitude and uncertain duration of the economic impacts, have resulted in challenges in attracting investor equity during this period of economic weakness and volatility. The disruption in the Company's Offerings had a protracted impact on capital raising, and the recessionary pressures on the economy resulted in real estate market uncertainty and an approximate 14% decrease in the estimated fair value of the Company’s real estate properties as of April 30, 2020 as compared with the estimated fair value of the Company’s real estate properties as of December 31, 2019. Given these circumstances, the Company revised its capital raise projections, its projections of new investment and other factors contributing to the Company's analysis of estimated fair value of its consolidated business operations as of June 30, 2020. Since the Company is a single reporting unit, the Company performed a quantitative analysis to compare the estimated fair value of the Company’s net tangible and intangible assets to the carrying value of its net tangible and intangible assets as of June 30, 2020. Since the estimated fair value of the Company’s net tangible and intangible assets was less than the carrying amount of its net tangible and intangible assets, the Company recorded a goodwill impairment charge of $33,267,143, which was reflected in the Company’s net loss for the six months ended June 30, 2020. The Company conducted its annual impairment analysis as of December 31, 2020 using qualitative factors and concluded that no additional impairment to goodwill was necessary. Management did not identify any triggering events for the six months ended June 30, 2021 and therefore a qualitative assessment was not required. Intangible Assets, Net The following table sets forth the Company's intangible assets, net as of June 30, 2021 and December 31, 2020 and their related useful lives: Intangible Assets Weighted- Average Useful Life June 30, 2021 December 31, 2020 Investor list, net 5.0 years $ 3,494,740 $ 3,494,740 Web services technology, domains and licenses 3.0 years 3,577,852 3,466,102 7,072,592 6,960,842 Accumulated amortization (2,758,793 ) (1,833,054 ) Net $ 4,313,799 $ 5,127,788 Amortization expense for the three months ended June 30, 2021 and 2020 amounted to $465,595 and $438,770, respectively, and for the six months ended June 30, 2021 and 2020 amounted to $925,739 and $925,989, respectively. As discussed above, the COVID-19 pandemic caused significant disruptions in the economy and uncertainties in the investment markets. Based on the impacts on the Company's investors and the economy, the Company evaluated the fair value of intangibles to determine if they exceeded the respective carrying values and determined that a portion of the investor list would no longer be viable and, therefore, the Company recorded an impairment charge of $1,305,260, which was reflected in the Company’s net loss for the six months ended June 30, 2020. The estimated amortization expense for the succeeding fiscal years is as follows: July 2021 to December 2021, $938,913; 2022, $1,877,826; 2023, $787,228; and 2024, $709,832 . |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Supplemental Balance Sheet Disclosure [Abstract] | ||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS | NOTE 6. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS Tenant Receivables, Net Tenant receivables consisted of the following: June 30, 2021 December 31, 2020 Straight-line rent $ 5,163,964 $ 4,344,388 Tenant rent 384,661 204,775 Tenant reimbursements 1,607,198 2,116,627 Total $ 7,155,823 $ 6,665,790 Accounts Payable, Accrued and Other Liabilities Accounts payable, accrued and other liabilities were comprised of the following: June 30, 2021 December 31, 2020 Accounts payable $ 398,793 $ 1,136,954 Accrued expenses 2,505,713 3,068,714 Accrued distributions 649,812 706,106 Accrued interest payable 580,882 629,628 Unearned rent 1,684,491 2,033,065 Lease incentive obligation 2,133,695 5,157 Total $ 7,953,386 $ 7,579,624 | NOTE 6. CONSOLIDATED BALANCE SHEETS DETAILS Tenant Receivables Tenant receivables consisted of the following: December 31, 2020 2019 Straight-line rent $ 4,344,388 $ 3,541,238 Tenant rent 204,775 420,959 Tenant reimbursements 1,979,963 1,854,883 Tenant other 136,664 407,684 Total $ 6,665,790 $ 6,224,764 Accounts Payable, Accrued and Other Liabilities Accounts payable, accrued and other liabilities were comprised of the following: December 31, 2020 2019 Accounts payable $ 1,136,954 $ 660,111 Accrued expenses (a) 3,068,714 5,773,214 Accrued dividends 706,106 962,615 Accrued interest payable 629,628 1,690,168 Unearned rent 2,033,065 1,963,896 Lease incentive obligation 5,157 505,157 Total $ 7,579,624 $ 11,555,161 (a) Includes accrued Merger expenses of $1,570,622 as of December 31, 2019. |
DEBT (Q2)
DEBT (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
DEBT | NOTE 7. DEBT Mortgage Notes Payable, Net As of June 30, 2021 and December 31, 2020, the Company’s mortgage notes payable consisted of the following: Collateral 2021 Principal Amount 2020 Principal Amount Contractual Interest Rate (1) Effective Interest Rate (1) Loan Maturity Accredo property $ 8,538,000 $ 8,538,000 3.80 % 3.80 % 8/1/2025 Six Dollar General properties 3,711,118 3,747,520 4.69 % 4.69 % 4/1/2022 Dana property — 4,466,865 4.56 % 4.56 % 4/1/2023 Northrop Grumman property (8) 7,000,000 5,518,589 3.35 % 3.35 % 5/21/2031 exp US Services property 3,288,786 3,321,931 (4 ) 4.25 % 11/17/2024 Harley Davidson property (2) 6,558,170 — 4.25 % 4.25 % 9/1/2024 Wyndham property (3) 5,551,200 5,607,000 One-month LIBOR + 2.05% 4.34 % 6/5/2027 Williams Sonoma property (3) 4,392,000 4,438,200 One-month LIBOR + 2.05% 4.34 % 6/5/2022 Omnicare property 4,151,386 4,193,171 4.36 % 4.36 % 5/1/2026 EMCOR property 2,784,868 2,811,539 4.35 % 4.35 % 12/1/2024 Husqvarna property 6,379,182 6,379,182 (5 ) 4.60 % 2/20/2028 AvAir property 19,950,000 19,950,000 3.80 % 3.80 % 8/1/2025 3M property 8,091,800 8,166,000 One-month LIBOR + 2.25% 5.09 % 3/29/2023 Cummins property 8,256,600 8,332,200 One-month LIBOR + 2.25% 5.16 % 4/4/2023 Texas Health property 4,324,160 4,363,203 4.00 % 4.00 % 12/5/2024 Bon Secours property 5,142,425 5,180,552 5.41 % 5.41 % 9/15/2026 Costco property 18,850,000 18,850,000 4.85 % 4.85 % 1/1/2030 Taylor Fresh Foods 12,350,000 12,350,000 3.85 % 3.85 % 11/1/2029 Levins property (6) 2,687,293 2,032,332 3.75 % 3.75 % 2/16/2026 Dollar General Bakersfield property (6) 2,263,573 2,268,922 3.65 % 3.65 % 2/16/2028 Labcorp property (6) 5,374,587 4,020,418 3.75 % 3.75 % 2/16/2026 GSA (MSHA) property (6) 1,743,349 1,752,092 3.65 % 3.65 % 2/16/2026 PreK San Antonio property (7) 4,984,311 5,037,846 4.25 % 4.25 % 12/1/2021 Solar Turbines, Amec Foster, ITW Rippey properties (7) 9,101,005 9,214,700 3.35 % 3.35 % 11/1/2026 Dollar General Big Spring property (7) 593,851 599,756 4.50 % 4.50 % 4/1/2022 Gap property (7) 3,531,585 3,569,990 4.15 % 4.15 % 8/1/2023 L3Harris property (8) 6,300,000 5,185,929 3.35 % 3.35 % 5/21/2031 Sutter Health property (7) 13,739,153 13,879,655 4.50 % 4.50 % 3/9/2024 Walgreens property (7) 3,120,360 3,172,846 4.25 % 4.25 % 7/16/2030 Total mortgage notes payable 182,758,762 176,948,438 Plus unamortized mortgage premium, net (9) 390,426 447,471 Less unamortized deferred financing costs (1,572,582 ) (1,469,991 ) Mortgage notes payable, net $ 181,576,606 $ 175,925,918 (1) Contractual interest rate represents the interest rate in effect under the mortgage note payable as of June 30, 2021. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2021, consisting of the contractual interest rate and the effect of the interest rate swap, if applicable (see Note 8 (2) Reclassified to mortgage note payable at June 30, 2021 from mortgage note payable related to real estate investments held for sale as of December 31, 2020 due to a subsequent decision not to sell the real estate investment property securing the loan which was reclassified back to assets held and used from assets held for sale (see Note 3 for details (3) The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The loans are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the loans, is an event of default under the terms of both loans. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the loans so that the loan to value ratio is no more than 60%. (4) The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate becomes the U.S. Treasury Bill index rate plus 3.25%. (5) The initial contractual interest rate is 4.60% through February 20, 2023 and then the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% through February 20, 2028. (6) The mortgage note as of June 30, 2021 was refinanced on March 5, 2021 with a new lender and terms. The mortgage note as of December 31, 2020 was acquired through the Merger on December 31, 2019. (7) The loan was acquired through the Merger on December 31, 2019. (8) The loans on the Northrop Grumman and L3Harris properties were refinanced during the three months ended June 30, 2021. The initial contractual interest rate is 3.35% through June 1, 2026 and then the Prime Rate in effect as of June 1, 2026 plus 0.25% through May 21, 2031; provided that the second fixed interest rate will not be lower than 3.35% per annum. (9) Represents unamortized net mortgage premium acquired through the Merger. The following summarizes the face value, carrying amount and fair value of the Company’s mortgage notes payable (Level 3 measurement) as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Face Value Carrying Value Fair Value Face value Carrying Value Fair Value Mortgage notes payable $ 182,758,762 $ 181,576,606 $ 184,187,667 $ 176,948,438 $ 175,925,918 $ 177,573,106 Disclosures of the fair values of financial instruments are based on pertinent information available to the Company as of the period end and require a significant amount of judgment. The actual value could be materially different from the Company’s estimate of fair value. Mortgage Notes Payable Related to Real Estate Investments Held For Sale, Net As discussed in detail in Note 3 The following table summarizes the Company's mortgage notes payable related to real estate investments held for sale as of June 30, 2021 and December 31, 2020: Collateral June 30, 2021 December 31, 2020 Dana Property $ 4,422,616 $ — Harley Davidson property — 6,623,346 EcoThrift property — 2,573,509 Total 4,422,616 9,196,855 Plus unamortized mortgage premium — 1,550 Less deferred financing costs (41,190 ) (109,967 ) Mortgage notes payable, net $ 4,381,426 $ 9,088,438 Credit Facility, Net The details of the Company's credit facilities as of June 30, 2021 and December 31, 2020 follow: June 30, 2021 December 31, 2020 Credit facility $ 3,000,000 $ 6,000,000 Less unamortized deferred financing costs (110,697 ) (21,724 ) Credit facility, net $ 2,889,303 $ 5,978,276 On March 29, 2021, the Company entered into a new credit facility with Banc of California (the “Credit Facility”) for an aggregate line of credit of $22,000,000 with a maturity date of March 30, 2023 which replaced the prior credit facility provided by Pacific Mercantile Bank (“PMB”) with a balance outstanding of $6,000,000 as of December 31, 2020. The Company borrowed $6,000,000 under the Credit Facility and repaid the $6,000,000 that was owed to PMB on March 31, 2021. The Credit Facility provides the Company with a $17,000,000 revolving line of credit for real estate acquisitions (including the $6,000,000 borrowed to repay PMB) and an additional $5,000,000 revolving line of credit for working capital. Under the terms of the Credit Facility, the Company will pay a variable rate of interest on outstanding amounts equal to one percentage point over the prime rate published in The Wall Street Journal, provided that the interest rate in effect on any one day shall not be less than 4.75% per annum. The Company paid Banc of California origination fees of $77,000 in connection with the Credit Facility and will pay an unused commitment fee of 0.15% per annum of the unused portion of the Credit Facility, charged quarterly in arrears based on the average unused commitment available under the Credit Facility. The Credit Facility is secured by substantially all of the Company’s tangible and intangible assets, including intellectual property. The Credit Facility requires the Company to maintain a minimum debt service coverage ratio of 1.25 to 1.00 and minimum tangible NAV (as defined in the loan agreement) of $120,000,000, measured quarterly. Mr. Wirta, the Company’s Chairman, has guaranteed the $6,000,000 initial borrowing, which guarantee will expire upon repayment of the $6,000,000 which is due by September 30, 2021. Mr. Wirta has also guaranteed the $5,000,000 revolving line of credit for working capital. On March 29, 2021, the Company entered into an updated indemnification agreement with Mr. Wirta and the Wirta Trust with respect to their guarantees of borrowings under the Credit Facility pursuant to which the Company agreed to indemnify Mr. Wirta and the Wirta Trust if they are required to make payments to Banc of California pursuant to such guarantees. On July 9, 2021, the Company repaid $1,500,000 of the $3,000,000 which was outstanding under its Credit Facility as of June 30, 2021. The Credit Facility contains customary representations, warranties and covenants, which are substantially similar to those in the Company's prior credit facility provided by PMB. The Company’s ability to borrow under the Credit Facility will be subject to its ongoing compliance with various affirmative and negative covenants, including with respect to indebtedness, guaranties, mergers and asset sales, liens, tangible net worth, corporate existence and financial reporting obligations. The Credit Facility also contains customary events of default, including, without limitation, nonpayment of principal, interest, fees or other amounts when due, violation of covenants, breaches of representations or warranties and change of ownership. Upon the occurrence of an event of default, Banc of California may accelerate the repayment of amounts outstanding under the Credit Facility, take possession of any collateral securing the Credit Facility and exercise other remedies subject, in certain instances, to the expiration of an applicable cure period. Short-term Notes Payable In connection with the Self-Management Transaction, the Company assumed from BrixInvest its unsecured short-term notes payable (formerly known as “Convertible Promissory Notes”) of $4,800,000 on December 31, 2019. All of these notes were repaid by April 6, 2020. Economic Relief Notes Payable On April 20, 2020, a subsidiary of the Company entered into a loan agreement and promissory note evidencing an unsecured loan in the aggregate amount of $517,000 made to this subsidiary under the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The PPP is administered by the U.S. Small Business Administration (the “SBA”). Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loan granted under the PPP. In December 2020, the subsidiary of the Company submitted its application for forgiveness of the total amount of the loan to PMB. After PMB’s review, the Company updated its forgiveness application on February 10, 2021, PMB submitted the application to the SBA on February 10, 2021, and on February 16, 2021, the subsidiary of the Company was notified by PMB that the Company's application for forgiveness of the PPP loan had been approved by the SBA in the full amount of $517,000. Accordingly, the forgiveness of the PPP loan was recorded as other income in the first quarter of 2021. Compliance with All Debt Agreements The Company's maximum leverage, as defined and approved by the board of directors, including all of the independent directors, is 55% of the aggregate value of the Company’s tangible assets. The Company uses available leverage based on the relative cost of debt and equity capital, and to address strategic borrowing advantages potentially available to the Company. Pursuant to the terms of mortgage notes payable on certain of the Company’s properties and the Credit Facility, the Company and/or the borrowers are subject to certain financial loan covenants. The Company and/or the borrowers were in compliance with such financial loan covenants as of June 30, 2021. The following summarizes the future principal repayments of the Company’s mortgage notes payable, unsecured credit facility and short-term notes payable as of June 30, 2021: Mortgage Notes Payable Credit Facility Total July through December 2021 $ 6,196,648 $ 3,000,000 $ 9,196,648 2022 11,171,882 — 11,171,882 2023 22,203,304 — 22,203,304 2024 31,562,644 — 31,562,644 2025 28,970,205 — 28,970,205 2026 26,484,106 — 26,484,106 Thereafter 56,169,973 — 56,169,973 Total principal 182,758,762 3,000,000 185,758,762 Plus unamortized mortgage premium, net of unamortized discount 390,426 — 390,426 Less deferred financing costs (1,572,582 ) (110,697 ) (1,683,279 ) Net principal $ 181,576,606 $ 2,889,303 $ 184,465,909 Interest Expense The following is a reconciliation of the components of interest expense for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Mortgage notes payable: Interest expense $ 1,992,812 $ 2,129,678 $ 3,826,636 $ 4,300,183 Amortization of deferred financing costs 103,383 139,600 214,426 258,631 Prepayment penalties — — 23,900 47,000 (Gain) loss on interest rate swaps (1) (92,200 ) 70,985 (420,243 ) 1,395,697 Credit facilities: Interest expense 63,333 166,834 142,085 321,458 Amortization of deferred financing costs 22,139 42,876 43,863 75,336 Other 9,182 8,904 49,118 65,228 Total interest expense $ 2,098,649 $ 2,558,877 $ 3,879,785 $ 6,463,533 (1) Includes unrealized (gain) loss on interest rate swaps of $(90,600) and $7,785 for the three months ended June 30, 2021 and 2020, respectively, and $(517,719) and $1,292,752 for the six months ended June 30, 2021 and 2020, respectively (see Note 8 | NOTE 7. DEBT Mortgage Notes Payable As of December 31, 2020 and 2019, the Company’s mortgage notes payable consisted of the following: Collateral 2020 Principal Balance 2019 Principal Balance Contractual Interest Rate (1) Effective Interest Rate (1) Loan Maturity Accredo/Walgreens properties (8)(11) $ 8,538,000 $ 6,853,442 3.80 % 3.80 % 2025-08-01 Six Dollar General properties 3,747,520 3,819,264 4.69 % 4.69 % 2022-04-01 Dana property 4,466,865 4,551,250 4.56 % 4.56 % 2023-04-01 Northrop Grumman property 5,518,589 5,666,866 4.40 % 4.40 % 2022-07-02 exp US Services property 3,321,931 3,385,353 (3 ) 4.25 % 2024-11-17 Harley Davidson property (12) — 6,748,029 4.25 % 4.25 % 2024-09-01 Wyndham property (2) 5,607,000 5,716,200 One-month LIBOR + 2.05% 4.34 % 2027-06-05 Williams Sonoma property (2) 4,438,200 4,530,600 One-month LIBOR + 2.05% 4.34 % 2022-06-05 Omnicare property 4,193,171 4,273,552 4.36 % 4.36 % 2026-05-01 EMCOR property 2,811,539 2,862,484 4.35 % 4.35 % 2024-12-01 Husqvarna property 6,379,182 6,379,182 (4 ) 4.60 % 2028-02-20 AvAir property (9) 19,950,000 14,575,000 3.80 % 3.80 % 2025-08-01 3M property 8,166,000 8,290,000 One-month LIBOR + 2.25% 5.09 % 2023-03-29 Cummins property 8,332,200 8,458,600 One-month LIBOR + 2.25% 5.16 % 2023-04-04 Former 24 Hour Fitness property (5)(11) — 6,283,898 One-month LIBOR + 4.30% 4.64 % 2049-04-01 Texas Health property 4,363,203 4,400,000 4.00 % 4.00 % 2024-12-05 Bon Secours property 5,180,552 5,250,000 5.41 % 5.41 % 2026-09-15 Costco property 18,850,000 18,850,000 4.85 % 4.85 % 2030-01-01 Taylor Fresh Foods property 12,350,000 12,350,000 3.85 % 3.85 % 2029-11-01 Levins property (6)(13) 2,032,332 2,079,793 One-month LIBOR + 1.93% 3.74 % 2021-01-05 Island Pacific Supermarket property (6)(11) — 1,891,225 One-month LIBOR + 1.93% 3.74 % 2033-05-30 Dollar General Bakersfield property (6)(13) 2,268,922 2,324,338 One-month LIBOR + 1.48% 3.38 % 2021-03-05 Rite Aid property (6)(11) — 3,659,338 One-month LIBOR + 1.50% 3.25 % 2021-05-05 PMI Preclinical property (6)(13) 4,020,418 4,118,613 One-month LIBOR + 1.48% 3.38 % 2021-03-05 EcoThrift property (6)(12) — 2,639,237 One-month LIBOR + 1.21% 2.96 % 2021-07-05 GSA (MSHA) property (6)(13) 1,752,092 1,796,361 One-month LIBOR + 1.25% 3.13 % 2021-08-05 PreK Education property (6) 5,037,846 5,140,343 4.25 % 4.25 % 2021-12-01 Dinan Cars property (6)(7)(11) — 2,710,834 2.76 % 2.76 % 2022-01-05 Solar Turbines, Wood Group, ITW Rippey properties (6) 9,214,700 9,434,692 3.35 % 3.35 % 2026-11-01 Dollar General Big Spring property (6) 599,756 611,161 4.50 % 4.50 % 2022-04-01 Gap property (6) 3,569,990 3,643,166 4.15 % 4.15 % 2023-08-01 L-3 Communications property (6) 5,185,929 5,284,884 4.69 % 4.69 % 2022-04-01 Sutter Health property (6) 13,879,655 14,161,776 4.50 % 4.50 % 2024-03-09 Walgreens Santa Maria property (6)(10) 3,172,846 3,000,000 4.25 % 4.25 % 2030-07-16 Total mortgage notes payable 176,948,438 195,739,481 Plus: unamortized mortgage premium, net (14) 447,471 489,664 Less: unamortized deferred financing costs (1,469,991 ) (2,189,938 ) Mortgage notes payable, net $ 175,925,918 $ 194,039,207 (1) Contractual interest rate represents the interest rate in effect under the mortgage note payable as of December 31, 2020. Effective interest rate is calculated as the actual interest rate in effect as of December 31, 2020, consisting of the contractual interest rate and the effect of the interest rate swap, if applicable (see Note 8 for further information regarding the Company’s derivative instruments). (2) The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The notes are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the notes is an event of default under the terms of both notes. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the notes so that the loan to value ratio is no more than 60%. (3) The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate is the U.S. Treasury Bill index rate plus 3.25%. (4) The initial contractual interest rate is 4.60% through February 20, 2023 and then the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% through February 20, 2028. (5) The interest rate adjusts in the 133rd, 253rd and 313th months. As discussed in Note 4, during the three months ended March 31, 2020, the Company recorded an impairment charge of $5,664,517 related to its investment in the 24 Hour Fitness property in Las Vegas, Nevada due to the substantial impact on fitness centers from the COVID-19 pandemic and the requirement of an indefinite and potentially extended period of store closures and the resulting inability of the tenant to make rent payments. On April 1, 2020, the Company’s special purpose subsidiary initiated negotiations with the lender on the 24 Hour Fitness property regarding the special purpose subsidiary's request for a deferral of mortgage payments until the tenant resumes paying rent. The lender on this property did not agree to provide any substantial mortgage relief to the Company's special purpose subsidiary, but rather agreed to temporarily reduce its $32,000 monthly mortgage payment by $8,000 for four monthly payments from May 2020 through August 2020. On June 15, 2020, the Company received written notice that the lease was formally rejected in connection with 24 Hour Fitness' Chapter 11 bankruptcy proceeding and the premises were surrendered to the Company's subsidiary. The 24 Hour Fitness property was sold on December 15, 2020 as described in Note 4. (6) The loan was acquired through the Merger on December 31, 2019. (7) The Company negotiated a lease termination with Dinan Cars effective January 31, 2020 in exchange for a termination payment from Dinan cars of $783,182 which was used to reduce the principal balance of this mortgage by $650,000 and establish a payment reserve with the remaining $133,182. In connection with the principal prepayment, the Company terminated the related swap agreement on February 4, 2020 at a cost of $47,000. See Note 8 for further discussion of the swap agreement termination and Note 4 for details on the sale of the property on October 28, 2020. (8) The mortgage note with principal balance of $6,853,442 as of December 31, 2019 with an interest rate of 3.95% was refinanced on August 10, 2020 with a new loan for $8,538,000 with an interest rate of 3.80%, secured only by the Accredo property and is scheduled to mature on August 1, 2025. In connection with this refinancing, the mortgage note balance for the Walgreens Stockbridge, Georgia property was fully repaid. (9) The mortgage note with original principal of $14,575,000 as of December 31, 2019 with an effective interest rate of 4.84% was refinanced on July 29, 2020 with a new loan for $19,950,000 with an interest rate of 3.80%, secured only by the AvAir property and which will mature on August 1, 2020. (10) The mortgage note of $3,000,000 as of December 31, 2019 with an interest rate of 7.50% was refinanced on July 22, 2020 for $3,217,500 with an interest rate of 4.25%, and is scheduled to mature on July 16, 2030. (11) The Rite Aid property was sold on August 3, 2020, the Walgreens property on August 27, 2020, the Island Pacific property on September 16, 2020, the Dinan Cars property on October 28, 2020 and the property formerly leased to 24 Hour Fitness was sold on December 15, 2020. (12) The December 31, 2020 principal amount is included in mortgage notes payable related to investments held for sale, net (see details below). (13) The mortgage note was refinanced on March 5, 2021 with a new note bearing an interest rate of 3.65% - 3.75%, with a five (14) Represents unamortized net mortgage premium acquired through the Merger. The following summarizes the face value, carrying amount and fair value of the Company’s mortgage notes payable (Level 3 measurement) as of December 31, 2020 and 2019, respectively: 2020 2019 Face Value Carrying Value Fair Value Face Value Carrying Value Fair Value Mortgage notes payable $ 176,948,438 $ 175,925,918 $ 177,573,106 $ 195,739,481 $ 194,039,207 $ 200,535,334 Disclosures of the fair values of financial instruments is based on pertinent information available to the Company as of the period end and require a significant amount of judgment. The actual value could be materially different from the Company’s estimate of value. Mortgage Notes Payable Related to Real Estate Investments Held For Sale, Net As discussed in detail in Note 4, the Company classified four properties as real estate held for sale as of December 31, 2020. The following table summarizes the Company's mortgage notes payable related to real estate investments held for sale as of December 31, 2020: Collateral December 31, 2020 Harley Davidson property $ 6,623,346 EcoThrift property 2,573,509 Total 9,196,855 Plus unamortized mortgage premium 1,550 Less deferred financing costs (109,967 ) Mortgage notes payable related to real estate investments held for sale, net $ 9,088,438 Unsecured Credit Facility, Net The details of the Company's unsecured credit facility as of December 31, 2020 and 2019 follow: December 31, 2020 2019 Unsecured credit facility $ 6,000,000 $ 7,740,000 Less unamortized deferred financing costs (21,724 ) (90,139 ) Unsecured credit facility, net $ 5,978,276 $ 7,649,861 On December 19, 2019, the Company, NNN LP, the Operating Partnership, Merger Sub, BrixInvest and modiv, LLC (collectively, the “Borrowers”) entered into a Loan and Security Agreement (the “Unsecured Credit Facility”) with Pacific Mercantile Bank (“PMB”). The Unsecured Credit Facility is a line of credit for a maximum principal amount of $12,000,000, and as of December 31, 2020 and 2019, the Unsecured Credit Facility had an outstanding balance of $6,000,000 and $7,740,000, respectively. On March 13, 2020, the Company amended the Unsecured Credit Facility to extend the maturity date of $6,940,000 of the outstanding borrowings under the Unsecured Credit Facility from March 31, 2020 to July 31, 2020, and to extend the maturity date of $3,060,000 of the outstanding borrowings under the Unsecured Credit Facility from May 4, 2020 to August 31, 2020. On August 13, 2020, the Company amended the Unsecured Credit Facility to extend the maturity date of $6,000,000 of the outstanding borrowings under the Unsecured Credit Facility to September 1, 2020 and the maturity date of the remaining $6,000,000 of the outstanding borrowings under the Unsecured Credit Facility to October 15, 2021. The Company repaid $6,000,000 of the $12,000,000 then outstanding borrowings under the Unsecured Credit Facility with proceeds generated by property refinancings and asset sales in August 2020. Under the August 13, 2020 amendment, there is a moratorium on new borrowings under the Unsecured Credit Facility until the remaining $6,000,000 is fully repaid. The Company paid PMB $25,000 in loan extension and modification fees in connection with the August 13, 2020 amendment. In connection with the August 13, 2020 amendment to the Unsecured Credit Facility, the Company's Chairman, Mr. Wirta and the Wirta Family Trust (the “Wirta Trust”) guaranteed the Company’s obligations under the Unsecured Credit Facility. On July 30, 2020, the Company entered into an indemnification agreement with Mr. Wirta and the Wirta Trust with respect to their guarantees of the Company’s $12,000,000 Unsecured Credit Facility with PMB pursuant to which the Company agreed to indemnify Mr. Wirta and the Wirta Trust if they are required to make payments to PMB pursuant to such guarantees. Under the terms of the Unsecured Credit Facility, the Borrowers pay a variable rate of interest on outstanding amounts equal to one percent percentage point over the prime rate published in The Wall Street Journal, provided that the interest rate in effect on any one day shall not be less than 5.50% per annum. The interest rate was 5.50% and 5.75% as of December 31, 2020 and 2019, respectively. The current interest rate is 5.50%, which is the minimum rate. To secure the payment and performance of all obligations under the Unsecured Credit Facility, each of modiv, LLC and BrixInvest granted to PMB a security interest in all of their right, title and interest in their accounts, inventory, equipment, deposit accounts, intellectual property, general intangibles, investment property and other property. On March 29, 2021, the Company entered into a new credit facility with Banc of California (the “New Credit Facility”) for an aggregate line of credit of $22,000,000 with a maturity date of March 30, 2023, which replaced the Unsecured Credit Facility. The Company borrowed $6,000,000 under the New Credit Facility and repaid the $6,000,000 that was owed to PMB on March 31, 2021. The New Credit Facility provides the Company with a $17,000,000 revolving line of credit for real estate acquisitions (including the $6,000,000 borrowed to repay PMB) and an additional $5,000,000 revolving line of credit for working capital. Under the terms of the New Credit Facility, the Company will pay a variable rate of interest on outstanding amounts equal to one percent percentage point over the prime rate published in The Wall Street Journal, provided that the interest rate in effect on any one day shall not be less than 4.75% per annum. The Company paid Banc of California origination fees of $77,000 in connection with the New Credit Facility and will pay an unused commitment fee of 0.15% per annum of the unused portion of the New Credit Facility, charged quarterly in arrears based on the average unused commitment available under the New Credit Facility. The New Credit Facility is secured by substantially all of the Company’s tangible and intangible assets, including intellectual property. The New Credit Facility requires the Company to maintain a minimum debt service coverage ratio of 1.25 to 1.00 and minimum tangible NAV (as defined in the loan agreement) of $120,000,000, measured quarterly. Mr. Wirta, the Company’s Chairman, has guaranteed the $6,000,000 initial borrowing, which guarantee will expire upon repayment of the $6,000,000 which is due by September 30, 2021. Mr. Wirta has also guaranteed the $5,000,000 revolving line of credit for working capital. On March 29, 2021, the Company entered into an updated indemnification agreement with Mr. Wirta and the Wirta Trust with respect to their guarantees of borrowings under the New Credit Facility. The New Credit Facility contains customary representations, warranties and covenants, which are substantially similar to those in the Company's Unsecured Credit Facility. The Company’s ability to borrow under the New Credit Facility will be subject to its ongoing compliance with various affirmative and negative covenants, including with respect to indebtedness, guaranties, mergers and asset sales, liens, corporate existence and financial reporting obligations. The New Credit Facility also contains customary events of default, including, without limitation, nonpayment of principal, interest, fees or other amounts when due, violation of covenants, breaches of representations or warranties and change of ownership. Upon the occurrence of an event of default, Banc of California may accelerate the repayment of amounts outstanding under the New Credit Facility, take possession of any collateral securing the New Credit Facility and exercise other remedies subject, in certain instances, to the expiration of an applicable cure period. Economic Relief Note Payable On April 20, 2020, a subsidiary of the Company entered into a loan agreement and promissory note evidencing an unsecured loan in the aggregate amount of $517,000 made to this subsidiary under the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The PPP is administered by the U.S. Small Business Administration (the “SBA”). Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. Modifications to the PPP by the U.S. Treasury and the Paycheck Protection Program Flexibility Act of 2020 extended the time period for loan forgiveness beyond the original eight-week period to 24 weeks, making it possible for the Company's subsidiary to apply for forgiveness of 100% of its PPP loan prior to December 31, 2020 and the deadline was later extended to February 15, 2021. The PPP loan was made through PMB. In December 2020, the subsidiary of the Company submitted its application for forgiveness of the total amount of the loan to PMB. After PMB’s review, the Company updated its forgiveness application on February 10, 2021, PMB submitted the application to the SBA on February 10, 2021, and on February 16, 2021, the subsidiary of the Company was notified by PMB that the Company's application for forgiveness of the PPP loan had been approved by the SBA. Short-term Notes Payable In connection with the Self-Management Transaction, the Company assumed from BrixInvest its unsecured short-term notes payable (formerly known as “Convertible Promissory Notes”) of $4,800,000 on December 31, 2019. The notes represented private party notes and bore interest at a fixed rate of 8% with all interest and principal due on the maturity date. Except for a portion of six notes from one borrower aggregating $1,024,750 for which the maturity date was extended to April 30, 2020, all notes were repaid prior to March 31, 2020. In exchange for the maturity date extension, the Company agreed to pay 2% of the principal and accrued interest, or $24,845, as an extension fee and agreed to an increase in the interest rate from 8% to 10% per annum during the extension period. The maturity date for the $490,000 of the extended short-term notes was subsequently accelerated to April 6, 2020 in exchange for a $10,000 reduction in the extension fee to $14,845 and these notes were repaid on April 6, 2020. Debt Maturities The following summarizes the future principal repayments of the Company’s mortgage notes payable, unsecured credit facility and short-term notes payable as of December 31, 2020: Mortgage Notes Payable Credit Facility Total 2021 $ 17,091,541 $ 6,000,000 $ 23,091,541 2022 20,873,759 — 20,873,759 2023 25,642,649 — 25,642,649 2024 24,599,437 — 24,599,437 2025 30,781,473 — 30,781,473 Thereafter 57,959,579 — 57,959,579 Total principal 176,948,438 6,000,000 182,948,438 Plus: unamortized mortgage premium, net of discount 447,471 — 447,471 Less: deferred financing costs, net (1,469,991 ) (21,724 ) (1,491,715 ) Total $ 175,925,918 $ 5,978,276 $ 181,904,194 Compliance with All Debt Agreements Pursuant to the terms of mortgage notes payable on certain of the Company’s properties and the Unsecured Credit Facility, the Company and/or the Borrowers are subject to certain financial loan covenants. The Company and/or the Borrowers were in compliance with all terms and conditions of the applicable loan agreements as of December 31, 2020. On March 27, 2020, the Company's conflicts committee and board of directors approved an increase in the Company's maximum leverage from 50% to 55% in order to allow the Company to take advantage of the current low interest rate environment, the relative cost of debt and equity capital, and strategic borrowing advantages potentially available to the Company. Interest Expense The following is a reconciliation of the components of interest expense for the years ended December 31, 2020 and 2019: Years Ended December 31, 2020 2019 Mortgage notes payable: Interest expense $ 8,470,248 $ 5,698,606 Amortization of deferred financing costs 937,564 601,658 Loss on interest rate swaps (1) 1,172,781 843,174 Unsecured credit facility: Interest expense 527,047 190,130 Amortization of deferred financing costs 128,171 36,542 Other loan fees 224,936 12,500 Total interest expense $ 11,460,747 $ 7,382,610 (1) Includes unrealized loss on interest rate swaps of $770,898 and $820,496 for years ended December 31, 2020 and 2019, respectively (see Note 8). Accrued interest payable of $45,636 and $22,282 as of December 31, 2020 and 2019, respectively, represents the unsettled portion of the interest rate swaps for the period from origination of the interest rate swap through the respective balance sheet dates. |
INTEREST RATE SWAP DERIVATIVE_2
INTEREST RATE SWAP DERIVATIVES (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
INTEREST RATE SWAP DERIVATIVES | NOTE 8. INTEREST RATE SWAP DERIVATIVES The Company, through its limited liability company subsidiaries, entered into interest rate swap agreements with amortizing notional amounts relating to four of its mortgage notes payable. Four additional swap agreements assumed in conjunction with the Merger which were in place as of December 31, 2020 were terminated in due course or were terminated in connection with asset sales and refinancings during the six months ended June 30, 2021. The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks. The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of June 30, 2021 and December 31, 2020, respectively: June 30, 2021 December 31, 2020 Derivative Instruments Number of Instruments Notional Amount (i) Reference Rate (ii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Number of Instruments Notional Amount (i) Reference Rate (iii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Interest Rate Swap Derivatives (iv) 4 $ 26,291,600 One-month LIBOR + applicable spread/Fixed at 4.05%-5.16% 4.55 % 2.6 years 8 $ 36,617,164 One-month LIBOR + applicable spread/Fixed at 3.13%-5.16% 3.35 % 2.2 years • The notional amount of the Company’s swaps decreases each month to correspond to the outstanding principal balance on the related mortgage. The minimum notional amounts (outstanding principal balance at the maturity date) as of June 30, 2021 and December 31, 2020 were $24,935,999 and $34,989,063, respectively. • The reference rate was as of June 30, 2021. • The reference rate was as of December 31, 2020. • The Company terminated swap agreements related to the GSA and Eco-Thrift properties during the six months ended June 30, 2021 and terminated the swap agreement related to the Dinan Cars property mortgage loan during the six months ended June 30, 2020 at aggregate costs of $23,900 and $47,000, respectively (see Note 7 The following table sets forth the fair value of the Company’s derivative instruments (Level 2 measurement), as well as their classification in the unaudited condensed consolidated balance sheets: June 30, 2021 December 31, 2020 Derivative Instrument Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Interest Rate Swaps Asset - Interest rate swap derivatives, at fair value — $ — — $ — Interest Rate Swaps Liability - Interest rate swap derivatives, at fair value 4 $ (1,240,336 ) 8 $ (1,743,889 ) The change in fair value of a derivative instrument that is not designated as a cash flow hedge for financial accounting purposes is recorded as interest expense in the unaudited condensed consolidated statements of operations. None of the Company’s derivatives at June 30, 2021 or December 31, 2020 were designated as hedging instruments; therefore, the net unrealized (gain) loss recognized on interest rate swaps of $(90,600) and $7,785 was recorded as a (decrease) increase in interest expense for the three months ended June 30, 2021 and 2020, respectively, and $(517,719) and $1,292,752 was recorded as an increase in interest expense for the six months ended June 30, 2021 and 2020, respectively. | NOTE 8. INTEREST RATE SWAP DERIVATIVES The Company, through its limited liability company subsidiaries, has entered into interest rate swap agreements with amortizing notional amounts relating to four of its mortgage notes payable and assumed eight additional swap agreements in conjunction with the Merger. During the year ended December 31, 2020, the Company terminated three swap agreements and classified one swap agreement to liabilities related to real estate investments assets held for sale. The reclassified swap agreement corresponds to a mortgage note payable reclassified to mortgage note payable related to a real estate investments asset held for sale as of December 31, 2020. The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks. The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of December 31, 2020 and 2019. December 31, 2020 December 31, 2019 Derivative Instruments Number of Instruments Notional Amount (i) Reference Rate (ii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Number of Instruments Notional Amount (i) Reference Rate (iii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Interest Rate Swap Derivatives 8 $ 36,617,164 One-month LIBOR + applicable spread/Fixed at 3.13%-5.16% 3.35 % 2.2 years 12 $ 48,215,139 One-month LIBOR + applicable spread/Fixed at 2.76%-5.16% 3.87 % 2.9 years (i) The notional amount of the Company’s swaps decreases each month to correspond to the outstanding principal balance on the related mortgage. The minimum notional amounts (outstanding principal balance at the maturity date) as of December 31, 2020 and 2019 were $34,989,063 and $45,514,229, respectively. (ii) The reference rate was as of December 31, 2020. (iii) The reference rate was as of December 31, 2019. The following table sets forth the fair value of the Company’s derivative instruments (Level 2 measurement), as well as their classification in the consolidated balance sheets: December 31, 2020 December 31, 2019 Derivative Instrument Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Interest Rate Swaps Asset - Interest rate swap derivatives, at fair value (*) — $ — 5 $ 34,567 Interest Rate Swaps Liability - Interest rate swap derivatives, at fair value (*) 8 $ (1,743,889 ) 7 $ (1,021,724 ) (*) The fair value of the five interest rate swap derivative assets and three interest rate derivative liabilities assumed from the Merger was $34,567 and $(51,514), respectively, as of December 31, 2019. The change in fair value of a derivative instrument that is not designated as a cash flow hedge for financial accounting purposes is recorded as interest expense in the consolidated statements of operations. None of the Company’s derivatives at December 31, 2020 or 2019 were designated as hedging instruments; therefore, the net unrealized losses recognized on interest rate swaps of $770,898 and $820,496, respectively, were recorded as increases in interest expense for year ended December 31, 2020 and 2019, respectively (see Note 7 |
RELATED PARTY TRANSACTIONS (Q2)
RELATED PARTY TRANSACTIONS (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | NOTE 9. RELATED PARTY TRANSACTIONS The Company pays the members of its board of directors who are not executive officers for services rendered through cash payments or by issuing shares of Class C common stock to them. The total fees incurred for board services and paid by the Company for the three and six months ended June 30, 2021 and 2020, is as follows: Three Months Ended June 30, Six Months Ended June 30, Board of Directors Compensation 2021 2020 2021 2020 Cash paid for services rendered $ 60,000 $ — $ 60,000 $ 31,250 Value of shares issued for services rendered 110,000 70,000 180,000 72,083 Total $ 170,000 $ 70,000 $ 240,000 $ 103,333 Number of shares issued for services rendered (*) 4,470 2,272 7,510 2,355 * Adjusted for the 1:3 reverse stock split for the three and six months ended June 30, 2020. As of June 30, 2020, $101,250 was accrued for the second quarter of 2020 services. This amount was paid in July 2020 by paying cash of $31,250 and issuing 4,821 shares of Class C common stock (adjusted for the 1:3 reverse stock split). Effective February 3, 2020, the Company's indirect subsidiary, modiv Advisors, LLC, became the advisor to BRIX REIT, Inc., a REIT originally sponsored by BrixInvest, LLC which also sponsored the Company until the Self-Management Transaction on December 31, 2019. During the three and six months ended June 30, 2021 and 2020, no business transactions occurred between the Company and BRIX REIT, Inc. other than minor expenses advanced. On March 2, 2020, the Company borrowed a total of $4,000,000, secured by mortgages on its two Chevron properties, from the Company's Chairman, Mr. Wirta. The Company's conflicts committee approved the terms of these mortgages which bore interest at an annual rate of 8% and were scheduled to mature on June 2, 2020. On June 1, 2020, the maturity date of these mortgages was extended to September 1, 2020 on the same terms, along with an option for a further extension to November 30, 2020 at the Company’s election prior to August 18, 2020, which the Company elected not to exercise. On July 31, 2020 and August 28, 2020, the mortgages secured by the Chevron San Jose, CA property and Chevron Roseville, CA property, each for $2,000,000, were repaid along with all related accrued interest. Due to Affiliates In connection with the Self-Management Transaction, the Company assumed two notes payable aggregating $630,820 on December 31, 2019 owed to Mr. Wirta, the Company's Chairman. The notes payable had identical terms including a fixed interest rate of 10% paid semi-monthly and a maturity date of April 23, 2020. The remaining principal amount of $218,931 due for each note, aggregating $437,862, was paid on the maturity date. The repayments are reflected in the change in due to affiliates in the accompanying unaudited statement of cash flows for the six months ended June 30, 2020. Related Party Transactions with Unconsolidated Entities The Company's taxable REIT subsidiary serves as the asset manager of the TIC Interest property and earned asset management fees of $47,984 for both the three months ended June 30, 2021 and 2020, respectively, and $95,967 for both the six months ended June 30, 2021 and 2020, respectively. | NOTE 9. RELATED PARTY TRANSACTIONS The Company pays the members of its board of directors who are not executive officers for services rendered through cash payments and by issuing shares of Class C common stock to them. During the years ended December 31, 2020 and 2019, the total fees incurred for board services were $407,083 and $372,500, respectively, of which $21,250 and $57,500 were unpaid as of December 31, 2020 and 2019, respectively. The fees paid in cash were $50,000 and $0 for the years ended December 31, 2020 and 2019, respectively. The fees paid by issuing shares of Class C common stock were $357,083 and $315,000 during the years ended December 31, 2020 and 2019, respectively. For the fees paid in Class C common stock, the Company issued 16,786 and 10,335 shares (adjusted for the 1:3 reverse stock split), respectively. In conjunction with the Self-Management Transaction effective December 31, 2019, the Advisory Agreement was terminated. The Advisory Agreement entitled the Former Advisor to specified fees upon the provision of certain services with regard to investments in real estate and the management of those investments, among other services, and the disposition of investments, as well as entitled the Former Advisor to reimbursement of organizational and offering costs incurred by the Former Advisor or Former Sponsor on behalf of the Company, such as expenses related to the Offerings, and certain costs incurred by the Former Advisor or Former Sponsor in providing services to the Company. In addition, the Former Advisor was entitled to certain other fees, including an incentive fee upon achieving certain performance goals, as detailed in the Advisory Agreement. The Former Sponsor also served as the sponsor for REIT I and BRIX REIT. Effective February 3, 2020, the Company's indirect subsidiary, modiv Advisors, LLC, became the advisor to BRIX REIT. During the years ended December 31, 2020 and 2019, no business transactions occurred between the Company and BRIX REIT, other than minor expenses advanced and, during the year ended December 31, 2019, no business transactions occurred between the Company and REIT I, other than as described below or elsewhere herein, and those relating to the Company’s investment in REIT I before the Merger, as described in Notes 3 5 On March 2, 2020, the Company borrowed a total of $4,000,000, secured by mortgages on its two Chevron properties, from the Company's Chairman, Mr. Wirta. The Company's conflicts committee approved the terms of these mortgages which bore interest at an annual rate of 8% and were scheduled to mature on June 2, 2020. On June 1, 2020, the maturity date of these mortgages was extended to September 1, 2020 on the same terms, along with an option for a further extension to November 30, 2020 at the Company’s election prior to August 18, 2020, which the Company elected not to exercise. On July 31, 2020 and August 28, 2020, the mortgages secured by the Chevron San Jose, CA property and Chevron Roseville, CA property, each for $2,000,000, were repaid along with all related accrued interest. There were no related party costs, including those incurred pursuant to the Advisory Agreement, for the year ended December 31, 2020 and no related party receivable and payable as of December 31, 2020. Summarized below are the related party costs incurred by the Company and related party receivable and payable as of December 31, 2019: Year Ended December 31, 2019 December 31, 2019 Incurred Receivable Payable Expensed: Asset management fees (1) $ 2,777,021 $ — $ — Reimbursable operating expense 528,000 — — Fees to affiliates 3,305,021 — — Property management fees* 224,922 — — Directors and officers insurance and other reimbursements ** 250,892 — — Expense reimbursements from Former Sponsor (2) (332,337 ) — — Capitalized: Acquisition fees 746,459 — — Financing coordination fees 107,500 — — Reimbursable organizational and offering expenses (3) 1,206,881 — — Other: Due from BRIX REIT (4) — 1,378 — Due from TIC — 954 — Notes due to Chairman of the Board — — $ 630,820 $ 2,332 $ 630,820 * Property management fees are classified within property expenses on the consolidated statements of operations. ** Directors and officers insurance and other reimbursements are classified within general and administrative expenses on the consolidated statements of operations. (1) To the extent the Former Advisor elected, in its sole discretion, to defer all or any portion of its monthly asset management fee, the Former Advisor was deemed to have waived, not deferred, that portion up to 0.025% of the total investment value of the Company’s assets. For the year ended December 31, 2019, the Former Advisor did not waive any of the asset management fees. In addition to amounts presented in this table, the Company also incurred asset management fees to the Former Advisor of $191,933 related to the TIC Interest during the year ended December 31, 2019, which amount was reflected as reductions of income recognized from investments in unconsolidated entities (see Note 5 (2) Includes payroll costs related to Company employees that answer questions from prospective stockholders. See “ Investor Relations Payroll Compensation Expense Reimbursements from Former Sponsor (3) Through the termination date on September 30, 2019, the Former Sponsor incurred $9,224,997 of organizational and offering costs on behalf of the Company. However, the Company was only obligated to reimburse the Former Sponsor for such organizational and offering expenses to the extent of 3% of gross offering proceeds. (4) The receivables represent incidental expenses advanced to BRIX REIT, which included unpaid asset management fees of $285,818 due from BRIX REIT, which were fully reserved and the Company agreed to waive in May 2020 given the impact of the COVID-19 pandemic on BRIX REIT. Organizational and Offering Costs The Company was obligated to reimburse the Former Sponsor or its affiliates for organizational and offering expenses (as defined in the Advisory Agreement) paid by the Former Sponsor on behalf of the Company. The Company reimbursed the Former Sponsor for organizational and offering expenses up to 3% of gross offering proceeds. Pursuant to an amendment to the Advisory Agreement dated October 14, 2019, the Company agreed to pay all future organizational and offering costs, and to no longer be reimbursed by the Former Sponsor for investor relations personnel costs after September 30, 2019, in exchange for the Former Sponsor's agreement to terminate its right to receive 3% of all offering proceeds as reimbursement for organizational and offering costs paid by the Former Sponsor. The Former Sponsor and its affiliates were responsible for any organizational and offering expenses to the extent they exceeded 3% of gross offering proceeds through September 30, 2019. Through September 30, 2019, the Former Sponsor had incurred organizational and offering expenses in excess of 3% of the gross offering proceeds received by the Company. Through September 30, 2019, the Company reimbursed the Former Sponsor $5,429,105 in organizational and offering costs, which was the Company’s maximum liability for organizational and offering costs. Investor Relations Compensation Expense Reimbursements from Former Sponsor The Company employs investor personnel to answer inquiries from potential and existing investors regarding the Company and/or its Registered Offerings. The payroll expense associated with the investor relations personnel was reimbursed by the Former Sponsor through September 30, 2019. The Former Sponsor considered these payroll costs to be offering expenses. The amount of payroll expense reimbursements from the Former Sponsor through September 30, 2019 was $373,252, which was partially offset by a refund of employment related legal costs of $40,915. Acquisition Fees The Company paid the Former Advisor an amount equal to 3% of the contract purchase price of the Company’s properties plus additions to real estate investments as acquisition fees. The total of all acquisition fees and acquisition expenses was required to be reasonable and was not to exceed 6% of the contract price of the property. However, a majority of the directors (including a majority of the independent directors) not otherwise interested in the transaction had the authority to approve fees in excess of these limits if they determined the transaction to be commercially competitive, fair and reasonable to the Company. Acquisition fees incurred were $746,459 during the year ended December 31, 2019. Asset Management Fees The Company paid the Former Advisor, as compensation for the advisory services rendered to the Company, a monthly fee in an amount equal to 0.1% of the total investment value, as defined in the Advisory Agreement (the “Asset Management Fee”), as of the end of the preceding month plus the book value of any properties acquired during the month pro-rated based on the number of days owned. The Asset Management Fee was payable monthly on the last business day of such month. The Asset Management Fee, which was required to be reasonable in the determination of the Company’s independent directors at least annually, was to be taken or waived, in whole or in part as to any year, in the sole discretion of the Former Advisor. All or any portion of the Asset Management Fee not paid as to any fiscal year was allowed to be deferred without interest and paid in such other fiscal year as the Former Advisor determined. Additionally, to the extent the Former Advisor elected, in its sole discretion, to defer all or any portion of its monthly Asset Management Fee, the Former Advisor was deemed to have waived, not deferred, that portion of its monthly Asset Management Fee that was up to 0.025% of the total investment value of the Company’s assets. The total amount of Asset Management Fees incurred during the year ended December 31, 2019 was $2,777,021, of which none was waived. Financing Coordination Fee Other than with respect to any mortgage or other financing related to a property concurrent with its acquisition, if the Former Advisor or an affiliate provided a substantial amount of the services (as determined by a majority of the Company’s independent directors) in connection with the post-acquisition financing or refinancing of any debt that the Company obtained relative to a property, then the Company paid to the Former Advisor or such affiliate a financing coordination fee equal to 1% of the amount of such financing. The Company incurred and paid $107,500 of financing coordination fees related to two loans during the year ended December 31, 2019. Property Management Fees If the Former Advisor or any of its affiliates provided a substantial amount of the property management services (as determined by a majority of the Company’s independent directors) for the Company’s properties, then the Company paid the Former Advisor or such affiliate a property management fee equal to 1.5% of gross revenues from the properties managed. The Company also reimbursed the Former Advisor and any of its affiliates for property-level expenses that such tenant paid or incurred to the Company, including salaries, bonuses and benefits of persons employed by the Former Advisor, except for the salaries, bonuses and benefits of persons who also served as one of the Company’s executive officers. The Former Advisor or its affiliate were entitled to subcontract the performance of its property management duties to third parties and pay all or a portion of its property management fee to the third parties with whom it contracted for these services. The Former Advisor provided property management services for 10 properties in the Company's portfolio during the year ended December 31, 2019 for which the Company incurred and paid $224,922 of property management fees. Disposition Fees For substantial assistance in connection with the sale of properties, the Company paid the Former Advisor or one of its affiliates 3.0% of the contract sales price, as defined in the Advisory Agreement, of each property sold; provided, however, that if, in connection with such disposition, commissions were paid to third parties unaffiliated with the Former Advisor or its affiliates, the disposition fees paid to the Former Advisor, the Former Sponsor, their affiliates and unaffiliated third parties could not exceed the lesser of the competitive real estate commission or 6% of the contract sales price. There were no disposition fees incurred during the year ended December 31, 2019. Subordinated Participation Fees The Company incurred a subordinated participation fee calculated as of December 31 of each year through 2018, payable to the Former Advisor or an affiliate thereof, which was paid (if at all) in the immediately following January. The subordinated participation fee was only due if the Preferred Return, as defined in the Advisory Agreement, was achieved and was equal to the sum of (using terms as defined in the Advisory Agreement): (i) 30% of the product of (a) the difference of (x) the Preliminary NAV per share minus (y) the Highest Prior NAV per share, multiplied by (b) the number of shares outstanding as of December 31 of the relevant annual period, but only if this resulted in a positive number, plus (ii) 30% o The Company calculated a subordinated participation fee of $839,050 which was accrued as of December 31, 2018 and paid in cash during the three months ended March 31, 2019. On August 9, 2019, the Advisory Agreement was amended to eliminate the Subordinated Participation Fee. Leasing Commission Fees If a property or properties of the Company became unleased and the Former Advisor or any of its affiliates provided a substantial amount of the services (as determined by a majority of the Company’s independent directors) in connection with the Company’s leasing of a property or properties to unaffiliated third parties, then the Company paid the Former Advisor or such affiliate leasing commissions equal to 6% of the rents due pursuant to such lease for the first ten years of the lease term; provided, however (i) if the term of the lease was less than ten years, such commission percentage was applied to the full term of the lease and (ii) any rents due under a renewal of a lease of an existing tenant upon expiration of the initial lease agreement (including any extensions provided for thereunder) accrued a commission of 3% in lieu of the aforementioned 6% commission. There were no leasing commission fees incurred during the year ended December 31, 2019. Other Operating Expense Reimbursement Under the Company's charter, prior to December 31, 2019, total operating expenses of the Company were limited to the greater of 2% of average invested assets or 25% of net income for the four most recently completed fiscal quarters (the “2%/25% Limitation”). If the Company exceeded the 2%/25% Limitation, the Former Advisor was required to reimburse the Company the amount by which the aggregate total operating expenses exceeded the limitation, or the Company was required to obtain a waiver from the Company's conflicts committee. For purposes of determining the 2%/25% Limitation amount, “average invested assets” meant the average monthly book value of the Company’s assets invested directly or indirectly in equity interests and loans secured by real estate during the 12-month period before deducting depreciation, reserves for bad debts or other non-cash reserves. “Total operating expenses” meant all expenses paid or incurred by the Company, as determined by GAAP, that were in any way related to the Company’s operation including asset management fees, but excluding (a) the expenses of raising capital such as organizational and offering expenses, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, listing and registration of shares of the Company’s common stock; (b) interest payments; (c) taxes; (d) non-cash expenditures such as depreciation, amortization and bad debt reserves; (e) reasonable incentive fees based upon increases in NAV per share; (f) acquisition fees and acquisition expenses (including expenses, relating to potential investments that the Company does not close); and (g) disposition fees on the sale of real property and other expenses connected with the acquisition, disposition and ownership of real estate interests or other property (other than disposition fees on the sale of assets other than real property), including the costs of insurance premiums, legal services, maintenance, repair and improvement of real property. The total reimbursable operating expenses incurred was $528,000 during the year ended December 31, 2019. The Company was in compliance with the 2%/25% Limitation for operating expenses for the four fiscal quarters ended December 31, 2019. Due to Affiliates In connection with the Self-Management Transaction, the Company assumed two notes payable aggregating $630,820 on December 31, 2019 owed to Mr. Wirta, the Company's Chairman, which were presented under due to affiliates in the Company's consolidated balance sheet as of December 31, 2019. The notes payable had identical terms including a fixed interest rate of 10% paid semi-monthly and a maturity date of April 23, 2020. The remaining principal amount of $218,931 due for each note, aggregating $437,862, was paid on the maturity date. Related Party Transactions with Unconsolidated Entities The Company’s portion of asset management fees paid to a subsidiary of the Company in 2020 and the Former Advisor in 2019 relating to the TIC Interest for the years ended December 31, 2020 and 2019 was as follows: Years Ended December 31, 2020 2019 Asset management fees $ 191,933 $ 191,907 The advisory agreement with the entity that owns the TIC Interest property was assigned to the Company's taxable REIT subsidiary following the Self-Management Transaction and the Company earns a monthly management fee equal to 0.1% of the total investment value of the property from this entity, which resulted in a fee of $263,971 for the year ended December 31, 2020, of which the Company's portion was $191,933. The Company’s portion of Former Advisor fees paid relating to REIT I for the year ended December 31, 2019 was as follows: Year Ended December 31, 2019 Expensed: Asset management fees $ 34,968 Other 16,800 Total $ 51,768 Acquisition of Intellectual Property From the Former Sponsor and Website Hosting Agreement With BRIX REIT Effective October 28, 2019, the Operating Partnership acquired certain software and related assets of the Former Sponsor in order for the Operating Partnership to develop and operate a new online platform for BRIX REIT. The Operating Partnership entered into a website hosting services agreement with BRIX REIT effective October 28, 2019, pursuant to which the Operating Partnership hosted the online platform at http://www.brix-reit.com |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | NOTE 10. COMMITMENTS AND CONTINGENCIES Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its 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 property could result in future environmental liabilities. Tenant Improvements Pursuant to lease agreements, as of June 30, 2021 and December 31, 2020, the Company had obligations to pay $189,136 and $60,598, respectively, for on-site and tenant improvements to be incurred by tenants. As of June 30, 2021 and December 31, 2020, the Company had $2,400,000 and $92,684 of restricted cash held to fund other building improvements, tenant improvements and leasing commissions. Redemption of Common Stock The Company has a share repurchase program that enables qualifying stockholders to sell their stock to the Company in limited circumstances. The maximum amount of common stock that may be repurchased per month is limited to no more than 2% of the Company’s most recently determined aggregate NAV. Repurchases for any calendar quarter are limited to no more than 5% of its most recently determined aggregate NAV. The foregoing repurchase limitations are based on “net repurchases” during a quarter or month, as applicable. Thus, for any given calendar quarter or month, the maximum amount of repurchases during that quarter or month will be equal to (1) 5% or 2% (as applicable) of the Company’s most recently determined aggregate NAV, plus (2) proceeds from sales of new shares in the Registered Offerings and Class S Offering (including purchases pursuant to its Registered DRP Offering) since the beginning of a current calendar quarter or month, less (3) repurchase proceeds paid since the beginning of the current calendar quarter or month. The Company has the discretion to repurchase fewer shares than have been requested to be repurchased in a particular month or quarter, or to repurchase no shares at all, in the event that it lacks readily available funds to do so due to market conditions beyond the Company’s control, it needs to maintain liquidity for its operations, or because the Company determines that investing in real property or other investments is a better use of its capital than repurchasing its shares. In the event that the Company repurchases some but not all of the shares submitted for repurchase in a given period, shares submitted for repurchase during such period will be repurchased on a pro-rata basis, subject to any Extraordinary Circumstance Repurchase (defined below). The Company has the discretion, but not the obligation, under extraordinary market or economic circumstances, to make a special repurchase in equal, nominal quantities of shares from all stockholders who have submitted share repurchase requests during the period (“Extraordinary Circumstance Repurchase”). Extraordinary Circumstance Repurchases will precede any pro rata share repurchases that may be made during the period. In addition, the Company’s board of directors may amend, suspend or terminate the share repurchase program without stockholder approval upon 10 days’ notice if its directors believe such action is in the Company and its stockholders’ best interests. The Company’s board of directors may also amend, suspend or terminate the share repurchase program due to changes in law or regulation, or if the board of directors becomes aware of undisclosed material information that the Company believes should be publicly disclosed before shares are repurchased. Legal Matters From time-to-time, the Company may become party to legal proceedings that arise in the ordinary course of its business. Other than as described below, the Company is not a party to any legal proceeding, nor is the Company aware of any pending or threatened litigation that could have a material adverse effect on the Company’s business, operating results, cash flows or financial condition should such litigation be resolved unfavorably. On September 18, 2019, a lawsuit was filed in the Superior Court of the State of California, County of Los Angeles (the “State Court Action”), against the former advisor by “John Doe,” a fictitiously-named individual who was one of the former advisor's former employees. The former advisor understands that the plaintiff was its former Chief Digital Officer, who along with six other employees was subject to a reduction in force, communicated to all in advance, that was a result of financial constraints of the former advisor which necessitated the elimination of numerous job positions in May 2019. In the lawsuit, the former employee claims he was terminated in retaliation for his purported whistleblowing with respect to alleged misleading statements made by the former advisor and fraudulently induced arbitration requirements applicable to employees and investors. The complaint seeks to enjoin and rescind the enforcement of the arbitration agreement signed by the former employee and the arbitration requirements related to this complaint. In September 2020, the State Court Action was removed to the United States District Court, Central District of California (“U.S. District Court”). On February 11, 2021, the U.S. District Court ruled in favor of the former advisor’s motion to compel arbitration and to stay the claim before the U.S. District Court and denied plaintiff’s motions to enjoin the arbitration and file a third amended complaint. On March 19, 2021, plaintiff filed a motion for leave to file a third amended complaint and lift the stay, in which he sought to dismiss his first two causes of action, and also sought to lift the stay imposed by the U.S. District Court's February 11, 2021 order. On April 15, 2021, the U.S. District Court granted plaintiff’s motion allowing the third amended complaint to be filed and on May 12, 2021, the U.S. District Court granted plaintiff’s motion to lift the stay. The Company is not a party to the lawsuit. The former advisor has denied all the accusations and allegations in the complaint and the former advisor intends to vigorously defend against the claims made by the plaintiff. | NOTE 10. COMMITMENTS AND CONTINGENCIES Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its 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. Tenant Improvements Pursuant to lease agreements, as of December 31, 2020 and 2019, the Company had obligations to pay $60,598 and $98,329, respectively, for in site and tenant improvements to be incurred by tenants, including a 72.7% share of the tenant improvements for the Santa Clara, California TIC Interest. As of both December 31, 2020 and 2019, the Company had $92,684 of restricted cash held to fund other tenant improvements. Operating Lease As a result of the Self-Management Transaction, on December 31, 2019, a subsidiary of the Company assumed the operating lease of the corporate office in Costa Mesa, California from BrixInvest. The office lease had a remaining term of 4.5 years, ending on June 30, 2024. During the second quarter of 2020, the Company's subsidiary re-evaluated its physical office space requirement given the effect of the COVID-19 pandemic, commenced negotiations with the landlord in May 2020 and vacated the premises to the landlord on June 1, 2020. Effective October 29, 2020, the Company’s subsidiary entered into a lease amendment for early termination of the lease in exchange for a lease termination fee of $1,350,000 and as such, the Company derecognized the right of use asset and the corresponding lease liability as of September 30, 2020. The termination fee was paid by the Company's subsidiary by releasing its $135,544 security deposit and a cash payment of $1,214,456. As a result of this transaction, the operating lease liability of $2,087,713 and the amount of accrued but unpaid lease payments of $242,216 which were previously included in accounts payable, accrued and other liabilities were partially offset by the elimination of the right of use asset of $2,019,577 and the release of the security deposit, resulting in a lease termination expense of $1,039,648 which is included in other expense in the accompanying statement of operations for the year ended December 31, 2020. Because the rate implicit in the subsidiary's lease was not readily determinable, the Company used an incremental borrowing rate to account for the lease as of December 31, 2019. In determining the Company's incremental borrowing rate for the lease, the Company considered the rate on its unsecured borrowings, observable risk-free interest rates and credit spreads correlating to the Company's creditworthiness and the term of the subsidiary's lease agreement. The discount rate used was 5.75%. Redemption of Common Stock The Company has a share repurchase program that enables qualifying stockholders to sell their stock to the Company in limited circumstances. The maximum amount of common stock that may be repurchased per month is limited to no more than 2% of the Company’s most recently determined aggregate NAV. Repurchases for any calendar quarter are limited to no more than 5% of its most recently determined aggregate NAV. The foregoing repurchase limitations are based on “net repurchases” during a quarter or month, as applicable. Thus, for any given calendar quarter or month, the maximum amount of repurchases during that quarter or month will be equal to (1) 5% or 2% (as applicable) of the Company’s most recently determined aggregate NAV, plus (2) proceeds from sales of new shares in the current offering (including purchases pursuant to its Registered DRP Offering) since the beginning of a current calendar quarter or month, less (3) repurchase proceeds paid since the beginning of the current calendar quarter or month. As of and , the Company's share repurchases payable were $2,980,559 and $0, respectively. In connection with the Company's entry into the Merger Agreement, the Company's share repurchase program was temporarily suspended on September 19, 2019 and was reopened on January 2, 2020. The Company has the discretion to repurchase fewer shares than have been requested to be repurchased in a particular month or quarter, or to repurchase no shares at all, in the event that it lacks readily available funds to do so due to market conditions beyond the Company’s control, its need to maintain liquidity for its operations or because the Company determines that investing in real property or other illiquid investments is a better use of its capital than repurchasing its shares. In the event that the Company repurchases some but not all of the shares submitted for repurchase in a given period, shares submitted for repurchase during such period will be repurchased on a pro-rata basis, subject to any Extraordinary Circumstance Repurchase (defined below). The Company has the discretion, but not the obligation, under extraordinary market or economic circumstances, to make a special repurchase in equal, nominal quantities of shares from all stockholders who have submitted share repurchase requests during the period (“Extraordinary Circumstance Repurchase”). Extraordinary Circumstance Repurchases will precede any pro rata share repurchases that may be made during the period. In addition, the Company’s board of directors may amend, suspend or terminate the share repurchase program without stockholder approval upon 10 days’ notice if its directors believe such action is in the Company's and its stockholders’ best interests. The Company’s board of directors may also amend, suspend or terminate the share repurchase program due to changes in law or regulation, or if the board of directors becomes aware of undisclosed material information that the Company believes should be publicly disclosed before shares are repurchased. Legal Matters From time-to-time, the Company may become party to legal proceedings that arise in the ordinary course of its business. Other than as described below, the Company is not a party to any legal proceeding, nor is the Company aware of any pending or threatened litigation that could have a material adverse effect on the Company’s business, operating results, cash flows or financial condition should such litigation be resolved unfavorably. On September 18, 2019, a lawsuit was filed in the Superior Court of the State of California, County of Los Angeles (the “State Court Action”), against the Former Advisor by “John Doe,” a fictitiously-named individual who was one of the Former Advisor's former employees. The Former Advisor understands that the plaintiff was its former Chief Digital Officer, who along with six other employees was subject to a reduction in force, communicated to all in advance, that was a result of financial constraints of the Former Advisor which necessitated the elimination of numerous job positions in May 2019. In the lawsuit, the former employee claims he was terminated in retaliation for his purported whistleblowing with respect to alleged misleading statements made by the Former Advisor and fraudulently induced arbitration requirements applicable to employees and investors. The complaint seeks to enjoin and rescind the enforcement of the arbitration agreement signed by the former employee and the arbitration requirements related to this complaint. In September 2020, the State Court Action was removed to the United States District Court, Central District of California (“U.S. District Court”). On February 11, 2021, the U.S. District Court ruled in favor of the Former Advisor’s motion to compel arbitration and denied plaintiff’s motions to enjoin the arbitration and file a third amended complaint. The Company is not a party to the lawsuit. The Former Advisor has denied all the accusations and allegations in the complaint and the Former Advisor intends to vigorously defend against the claims made by the plaintiff. |
OPERATING PARTNERSHIP UNITS (Q2
OPERATING PARTNERSHIP UNITS (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Business Combinations [Abstract] | ||
OPERATING PARTNERSHIP UNITS | NOTE 11. OPERATING PARTNERSHIP UNITS Class M OP Units On September 19, 2019, the Company, the Operating Partnership, BrixInvest and Daisho OP Holdings, LLC, a formerly wholly owned subsidiary of BrixInvest (“Daisho”) which was spun off from BrixInvest on December 31, 2019, entered into the Contribution Agreement pursuant to which the Company agreed to acquire substantially all of the net assets of BrixInvest in exchange for 657,949.5 Class M OP Units in the Operating Partnership and assumed certain liabilities. The consideration transferred as of December 31, 2019 was determined to have a fair value of $50,603,000 based on a probability weighted analysis of achieving the requisite assets under management (“AUM”) and adjusted funds from operations (“AFFO”) hurdles. The Class M OP Units were issued to Daisho on December 31, 2019 in connection with the Self-Management Transaction and are non-voting, non-dividend accruing, and were not able to be converted or exchanged prior to the one-year anniversary of the Self-Management Transaction. Investors holding units in BrixInvest received Daisho units in a ratio of 1 1.6667 In the event that the Class M OP Units are converted into Class C OP Units prior to December 31, 2023, such Class M OP Units shall be exchanged at the rate indicated below: Date of Exchange Early Conversion Rate From December 31, 2020 to December 30, 2021 50% of the Class M conversion ratio From December 31, 2021 to December 30, 2022 60% of the Class M conversion ratio From December 31, 2022 to December 30, 2023 70% of the Class M conversion ratio The Class M OP Units are eligible for an increase in the conversion ratio (conversion ratio enhancement) if the Company achieves both of the targets for AUM and AFFO in a given year as set forth below and as adjusted for the 1:3 reverse stock split: Hurdles AUM AFFO Class M Initial Conversion Ratio 1: 1.6667 Fiscal Year 2021 $ 0.860 $ 1.77 1: 1.9167 Fiscal Year 2022 $ 1.175 $ 1.95 1: 2.5000 Fiscal Year 2023 $ 1.551 $ 2.10 1: 3.0000 Based on the current conversion ratio of 1.6667 26.05 43.42 Class P OP Units The Company also issued a portion of the Class P OP Units described below in connection with the Self-Management Transaction. The Class P OP Units are intended to be treated as “profits interests” in the Operating Partnership, which are non-voting, non-dividend accruing, and are not able to be transferred or exchanged prior to the earlier of (1) March 31, 2024, (2) a change of control (as defined in the Third Amended and Restated Agreement of Limited Partnership of the Operating Partnership (the “Amended OP Agreement”)), or (3) the date of the recipient's involuntary termination (as defined in the relevant award agreement for the Class P OP Units) (collectively, the “Lockup Period”). Following the expiration of the Lockup Period, the Class P OP Units are convertible into Class C OP Units at a conversion ratio of 1.6667 The Company issued a total of 56,029 Class P OP Units to Messrs. Halfacre and Raymond J. Pacini, the Company’s Chief Financial Officer, including 26,318 Class P OP Units issued in exchange for Messrs. Halfacre's and Pacini's agreements to forfeit a similar number of restricted units in BrixInvest in connection with the Self-Management Transaction. The remaining 29,711 Class P OP Units were issued to these executives as a portion of their incentive compensation for 2020 in connection with their entry into restrictive covenant agreements. The 29,711 Class P OP Units were valued based on the estimated NAV per share of $30.48 (unaudited and adjusted for the 1:3 reverse stock split) when issued on December 31, 2019 and the expected minimum conversion ratio of 1.6667 Under the Amended OP Agreement, once the Class M OP Units or Class P OP Units are converted into Class C OP Units, they will be exchangeable for the Company’s shares of Class C common stock on a 1 Class R OP Units On January 25, 2021, the compensation committee of the Company's board of directors recommended, and the board of directors approved, the grant of 120,000 Class R OP Units to Mr. Halfacre in recognition of his voluntary reduction in his 2020 compensation plus 512,000 Class R OP Units to Mr. Halfacre as equity incentive compensation for the next three years, and the grant of 100,000 Class R OP Units to Mr. Pacini as equity incentive compensation for the next three years. An additional 348,000 Class R OP Units were granted to the rest of the employees of the Company. All Class R OP Units granted vest on January 25, 2024 and are then mandatorily convertible into Class C OP Units on March 31, 2024 at a conversion ratio of 1 2.5 As a result of the Company’s 1:3 reverse stock split on February 1, 2021, Mr. Halfacre’s, Mr. Pacini’s and the remaining employees’ Class R OP Units were adjusted to 210,667 Class R OP Units, 33,333 Class R OP Units and 116,000 Class R OP Units, respectively, for a total of 360,000 Class R OP Units outstanding after adjustment for the 1:3 reverse stock split on February 1, 2021. Stock compensation expense related to the 360,000 Class R OP Units is based on the estimated value per share, including a discount for the illiquid nature of the underlying equity, and will be recognized over the three-year vesting period. During the three months ended June 30, 2021, 1,330 Class R OP Units were forfeited due to the departure of an employee. During the three and six months ended June 30, 2021, the Company amortized and charged $568,304 and $1,014,165, respectively, to stock compensation expense for the Class R OP Units since the grant date, adjusted for the reversal of the previous amortization of the forfeited units. The unamortized value of these units was $6,006,979 as of June 30, 2021. | NOTE 3. MERGER AND SELF-MANAGEMENT TRANSACTION REIT I Merger Transaction On December 31, 2019, pursuant to the Merger Agreement, the Company completed the acquisition of REIT I. The Company's stockholders approved the Merger contemplated by the Merger Agreement at the Annual Meeting of Stockholders held on December 17, 2019 (the “Annual Meeting”). The shareholders of REIT I approved the Merger contemplated by the Merger Agreement at REIT I’s Special Meeting of Shareholders, also held on December 17, 2019. On December 31, 2019, REIT I merged with and into Merger Sub, which survived the Merger as the Company's direct, wholly-owned subsidiary. At such time, the separate existence of REIT I ceased. The acquisition primarily included 20 single-tenant commercial properties and related tenant receivables, mortgage notes payable and accounts payable, in exchange for Merger consideration for each of REIT I's common shares (the “REIT I Common Shares”) issued and outstanding immediately prior to the Merger, other than the REIT I Common Shares owned by the Company, which were automatically canceled and retired, and converted into the right to receive one share of the Company's Class C common stock, with any fractional REIT I Common Shares converted into a corresponding number of fractional shares of the Company’s Class C common stock. As a result, the Company issued 2,680,740.5 shares (adjusted for the 1: 3 Note 5 Accounting Treatment While the Merger transaction was treated legally as a merger of the two entities, for accounting purposes, the transaction was treated as an asset acquisition under GAAP because REIT I did not possess the capability to operate its properties to generate revenue since it had no workforce. It was dependent on its advisor and did not possess the processes to perform asset management, property purchase and sale transactions or the resulting revenue generation on a stand-alone basis. The real estate assets acquired are similar in nature to each other and represent substantially all of the fair value of the assets acquired. While there are some dissimilarities, including the nature of the use (retail, industrial and office), each of the properties was subject to a multi-year lease with a single creditworthy tenant and the properties had similar risk profiles, generally including a mortgage secured only by the property. In addition, 17 of the 20 properties (approximately 93% by value as of the transaction date) were located in California and therefore subject to California law. Further, all properties were managed without on-site offices. Also, as Merger Sub, not REIT I, was the surviving entity, there was no entity level debt and there was no contingent consideration paid, as would be typical in the purchase of an operating business. The assets and liabilities acquired in the Merger were recorded at their estimated fair value as determined as of December 31, 2019, including normal adjustments for the values of lease-in-place and above/below market leases and premium/discount on outstanding mortgage notes payable. The Company incurred approximately $3,044,000 of acquisition-related transaction costs during 2019. These acquisition-related transaction costs were capitalized to the acquired real estate assets. As the transaction closed on the final day of the year, the Merger did not have an impact on the Company's consolidated statement of operations for the year ended December 31, 2019. Purchase Price Allocation The Company accounted for the Merger in accordance with the accounting standards codification guidance for business combinations, whereby the total purchase price was allocated to the acquired net tangible and intangible assets based on their estimated fair values as of the closing date. As of December 31, 2019, the Company had substantially completed its process for measuring the fair values of the assets acquired and liabilities assumed based on information available as of the closing date. The following table summarizes the allocation of the purchase price to the fair values assigned to the REIT I assets acquired and liabilities assumed as of December 31, 2019, the Merger closing date. These fair values are based on internal Company and independent external third-party valuations: Fair Values Assigned December 31, 2019 Assets: Real estate property, including above/below lease intangibles $ 151,099,097 Cash and cash equivalents 1,612,331 Tenant receivable 310,169 Prepaid expenses and other assets 51,924 Liabilities: Mortgage notes payable, net (62,985,425 ) Accounts payable and other liabilities (2,243,156 ) Net 87,844,940 Less: Cancellation of investment in REIT I (Note 5) (3,091,489 ) Capitalized transaction-related costs (3,044,480 ) Net Assets Acquired $ 81,708,971 Self-Management Transaction On September 19, 2019, the Company, the Operating Partnership, BrixInvest and Daisho entered into the Contribution Agreement pursuant to which the Company agreed to acquire substantially all of the net assets of BrixInvest in exchange for 657,949.5 Class M OP Units in the Operating Partnership and assumed certain liabilities. On December 31, 2019, the Self-Management Transaction was completed. Prior to the closing of the Self-Management Transaction: (i) substantially all of BrixInvest’s assets and liabilities were contributed to Daisho’s wholly-owned subsidiary, modiv, LLC, a Delaware limited liability company (“modiv, LLC”); and (ii) BrixInvest spun off Daisho to the BrixInvest members (the “Spin Off”). Pursuant to the Self-Management Transaction, Daisho contributed to the Operating Partnership all of the membership interests in modiv, LLC in exchange for the Class M OP Units. As a result of the Self-Management Transaction, BrixInvest, through its subsidiary, Daisho, transferred all of its operating assets, including but not limited to: (i) all personal property used in or necessary for the conduct of BrixInvest’s business; (ii) intellectual property, goodwill, licenses and sublicenses granted and obtained with respect thereto and certain domain names; (iii) all continuing employees and (iv) certain other assets and liabilities, to modiv, LLC and distributed 100% of the ownership interests in Daisho to the members of BrixInvest in the Spin Off. BrixInvest had been engaged in the business of serving as the sponsor platform supporting the operations of the Company, REIT I and, prior to October 28, 2019, BRIX REIT, Inc. (“BRIX REIT”), including serving, directly or indirectly, as advisor and property manager to the Company, REIT I and, until October 28, 2019, BRIX REIT. As a result of the Merger and the Self-Management Transaction, effective December 31, 2019, the Company, its Former Advisor and BrixInvest, which wholly owned the Company's Former Advisor, mutually agreed to terminate the Advisory Agreement, and the Company became self-managed. Accordingly, disclosures with regard to the Advisory Agreement elsewhere in this Annual Report on Form 10-K pertain only to transactions with the Company's Former Advisor through December 31, 2019. Amendments to Operating Partnership Agreement On December 31, 2019, the Company, the Operating Partnership and NNN LP entered into the Second Amended and Restated Agreement of Limited Partnership (the “Amended OP Agreement”), which amended the Amended and Restated Agreement of Limited Partnership of the Operating Partnership dated August 11, 2017. The amendments included amending the name of the Operating Partnership from “Rich Uncles NNN Operating Partnership, LP” to “RW Holdings NNN REIT Operating Partnership, LP” and providing the terms of the Class M OP Units and Class P OP Units issued in connection with the Self-Management Transaction and further described below. The Class M OP Units were issued to Daisho on December 31, 2019 in connection with the Self-Management Transaction and are non-voting, non-dividend accruing, and were not able to be converted or exchanged prior to the one-year anniversary of the completion of the Self-Management Transaction. Investors holding units in BrixInvest received Daisho units in a ratio of 1:1 for an aggregate of 657,949.5 Daisho units. During 2020, Daisho distributed the Class M OP Units to its members and the Class M OP Units will become convertible into units of Class C limited partnership interest in the Operating Partnership (“Class C OP Units”) at a conversion ratio of 1.6667 3 In the event that the Class M OP Units are converted into Class C OP Units prior to December 31, 2023, such Class M OP Units shall be exchanged at the rate indicated below: Date of Exchange Early Conversion Rate From December 31, 2020 to December 30, 2021 50% of the Class M conversion ratio From December 31, 2021 to December 30, 2022 60% of the Class M conversion ratio From December 31, 2022 to December 30, 2023 70% of the Class M conversion ratio The Class M OP Units are eligible for an increase in the conversion ratio (conversion ratio enhancement) if the Company achieves both of the targets for assets under management (“AUM”) and adjusted funds from operations (“AFFO”) in a given year as set forth below and as adjusted for the 1: 3 Hurdles AUM AFFO Class M Initial Conversion Ratio 1: 1.6667 Fiscal Year 2021 $ 0.860 $ 1.77 1: 1.9167 Fiscal Year 2022 $ 1.175 $ 1.95 1: 2.5000 Fiscal Year 2023 $ 1.551 $ 2.10 1: 3.0000 Based on the current conversion ratio of 1.6667 3 21.01 3 35.02 3 The Company also issued a portion of the Class P OP Units described below in connection with the Self-Management Transaction. The Class P OP Units are intended to be treated as “profits interests” in the Operating Partnership, which are non-voting, non-dividend accruing, and are not able to be transferred or exchanged prior to the earlier of (1) March 31, 2024, (2) a change of control (as defined in the Amended OP Agreement), or (3) the date of the recipient's involuntary termination (as defined in the relevant award agreement for the Class P OP Units) (collectively, the “Lockup Period”). Following the expiration of the Lockup Period, the Class P OP Units are convertible into Class C OP Units at a conversion ratio of 1.6667 Class C OP Units (adjusted for the 1: 3 The Company issued a total of 56,029 Class P OP Units to Messrs. Halfacre and Raymond J. Pacini, the Company's Chief Financial Officer, including 26,318 Class P OP Units issued in exchange for Messrs. Halfacre's and Pacini's agreements to forfeit a similar number of restricted units in BrixInvest in connection with the Self-Management Transaction. The remaining 29,711 Class P OP Units were issued to these executives as a portion of their incentive compensation for 2020 in connection with their entry into restrictive covenant agreements. The 29,711 Class P OP Units were valued based on the estimated NAV per share of $30.48 (unaudited and adjusted for the 1: 3 1.6667 3 Under the Amended OP Agreement, once the Class M OP Units or Class P OP Units are converted into Class C OP Units, they will be exchangeable for the Company’s shares of Class C common stock on a 1-for-1 basis, or for cash at the sole and absolute discretion of the Company. The Company recorded the ownership interest of the Class M OP Units and Class P OP Units as a noncontrolling interest in the Operating Partnership representing a combined total of approximately 13% of equity in the Operating Partnership as of December 31, 2019. On February 1, 2021, the Company, the Operating Partnership and the limited partners of the Operating Partnership entered into the Third Amended and Restated Agreement of Limited Partnership, which further amended the Amended OP Agreement dated December 31, 2019. The amendments included amending the name of the Operating Partnership from “RW Holdings NNN REIT Operating Partnership, LP” to “Modiv Operating Partnership, LP” and providing the terms of the Class R OP Units granted to employees as further described in Note 11 Registration Rights Agreement On December 31, 2019, the Company, the Operating Partnership and Daisho entered into a Registration Rights Agreement pursuant to which Daisho (or any successor holder) has the right, after one year from the date of the Self-Management Transaction, to request that the Company register for resale under the Securities Act shares of the Company's Class C common stock issued or issuable to such holder in exchange for the Class C OP Units as described above. Accounting Treatment In accordance with GAAP, the Company accounted for the Self-Management Transaction as an acquisition of a business in accordance with the accounting standards codification guidance for business combinations because the parties to the transaction were not under common control and the acquisition was for an integrated set of activities and assets, consisting of inputs (executives and staff with knowledge and experience) and processes (operating a real estate investment trust and online investor website platform) that contribute to the creation of outputs (real estate transactions, asset management and generation of investors). Therefore, the total consideration transferred was allocated to the acquired net tangible and intangible assets based on their estimated fair values as of December 31, 2019. The fair value measurement of the consideration transferred is based on significant inputs not observable in the market and thus represent a Level 3 measurement as discussed in Note 2 As of December 31, 2019, the Company has substantially completed its process for measuring the fair values of the assets acquired and liabilities assumed based on information available as of the closing date. The Company incurred $1,468,913 in costs in connection with the Self-Management Transaction, which are included in the accompanying consolidated statement of operations for the year ended December 31, 2019 and an additional $201,920 in post-closing costs incurred during the year ended December 31, 2020. Purchase Price Allocation The following table summarizes the allocation of the purchase price to the fair values assigned to the BrixInvest assets acquired and liabilities assumed as of December 31, 2019, the closing date of the Self-Management Transaction. These fair values are based on internal Company and independent external third-party valuations: Fair Values Assigned December 31, 2019 Assets: Cash and cash equivalents $ (204,176 ) Prepaid expenses and other assets (305,212 ) Operating lease right-of-use asset (2,386,877 ) Intangible assets (7,700,000 ) Liabilities: Short-term notes payable 4,800,000 Due to affiliates 630,820 Bank line of credit 800,000 Accounts payable and other liabilities 2,070,968 Operating lease liability 2,386,877 Net 92,400 Add: Cancellation of investment in the Company (107,400 ) Less: Contribution of Class M OP Units and Class P OP Units 50,603,000 Goodwill $ (50,588,000 ) Prior to the closing of the Self-Management Transaction, BrixInvest held 3,580 shares (adjusted for the 1: 3 3 Goodwill The goodwill recognized was primarily attributable to the Company's ability to be self-managed, the value of the workforce which could facilitate growth opportunities from both existing and new investment income streams and the ability to offer new products, the investor platform acquired from BrixInvest and its expected synergies resulting from the Self-Management Transaction and the Merger. Key areas of expected cost synergies included increased purchasing power for acquiring properties, lower financing costs and administrative efficiencies. Goodwill was expected to be mostly non-deductible for tax purposes. As permitted under ASC 805 for business combinations, the Company recorded goodwill because the purchase price of the Self-Management Transaction exceeded the estimated fair value of net identified tangible and intangible assets acquired. However, the current COVID-19 pandemic in the United States and globally, and the magnitude and uncertain duration of the economic impacts, have resulted in challenges in attracting investor equity during this period of economic weakness and volatility. The disruption in the Company's Offerings was expected to have a protracted impact on capital raising, and the recessionary pressures on the economy resulted in real estate market uncertainty and an approximate 14% decrease in the estimated fair value of the Company’s real estate properties as of April 30, 2020 as compared with the estimated fair value of the Company’s real estate properties as of December 31, 2019 (see discussion of the Company's updated estimated NAV per share approved on May 20, 2020 in Note 1 Note 2 The net carrying amount of goodwill as of December 31, 2020 and 2019 is as follows: December 31, 2020 2019 Goodwill $ 17,320,857 $ 50,588,000 Intangible Assets Acquired The allocation of the purchase price to the net assets acquired in the Self-Management Transaction resulted in the recognition of $7,700,000 of intangible assets as of the December 31, 2019 closing date. The fair values of the acquired investor lists and developed technology assets, primarily the investor online platform, were determined using the adjusted cost approach, which approximates fair value. The useful lives of the intangible assets were determined based on the period of expected cash flows used to measure the fair value of the intangible assets adjusted as appropriate for entity-specific factors including legal, regulatory, contractual, competitive, economic, and/or other factors that may limit the useful life of the respective intangible asset. Intangible assets, net as of December 31, 2020 and 2019 and related useful lives were as follows: Weighted- December 31, Intangible Assets Average Useful Life 2020 2019 Investor list, net 5.0 years $ 3,494,740 $ 4,800,000 Web services technology, domains and licenses 3.0 years 3,466,102 2,900,000 6,960,842 7,700,000 Accumulated amortization (1,833,054 ) — Net $ 5,127,788 $ 7,700,000 No amortization expense was recorded for the intangible assets resulting from the acquisition of BrixInvest assets for the year ended December 31, 2019 due to the closing date having been on the final day of the fiscal year. During the year ended December 31, 2020, the Company acquired additional web services technology, domains and licenses intangible assets of $566,102, respectively. Amortization expense for the year ended December 31, 2020 amounted to $1,833,054. As discussed above, the COVID-19 pandemic has caused significant disruptions in the economy and uncertainties in the investment markets. Based on the impacts on the Company's investors and the economy, the Company evaluated the fair value of intangibles to determine if they exceeded the respective carrying values and determined that a portion of the investor list would no longer be viable and, therefore, an impairment charge of $1,305,260 was recorded during the quarter ended March 31, 2020. The Company conducted its annual impairment analysis of additional intangible assets as of December 31, 2020 using the qualitative factors discussed in Note 2 The estimated amortization expense for the succeeding fiscal years is as follows: 2021, $1,840,576; 2022, $1,840,576; 2023, $749,978; and 2024, $696,658. |
SUBSEQUENT EVENTS (Q2)
SUBSEQUENT EVENTS (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | NOTE 12. SUBSEQUENT EVENTS The Company evaluates subsequent events until the date the unaudited condensed consolidated financial statements are issued. Significant subsequent events are described below: Distributions The Company paid the June 2021 distribution of $650,167 on July 26, 2021, based on the daily distribution rate of $ 0.00287670 1.05 24.61 Redeemable Common Stock Subsequent to June 30, 2021, the Company redeemed 83,834 shares of Class C common stock for $2,059,527 and no shares of Class S common stock. Updated Estimated NAV Per Share On August 4, 2021, the Company’s board of directors approved and established an updated estimated NAV per share of the Company’s Class C common stock and Class S common stock of $ 26.05 Sale of Real Estate Investment On July 7, 2021, the Company completed the sale of its Cedar Park, Texas retail property that was leased to Dana Incorporated, but unoccupied, for $10,000,000, which generated net proceeds of $4,975,334 after repayment of the existing mortgage, commissions and closing costs. Repayment of Borrowings Under Credit Facility On July 9, 2021, the Company repaid $1,500,000 of the $3,000,000 that was outstanding under its Credit Facility as of June 30, 2021. As a result of this repayment, the Company has availability to draw up to $15,500,000 under its Credit Facility to fund potential real estate acquisitions, along with additional availability of up to $5,000,000 for working capital. Real Estate Acquisition On July 26, 2021, the Company, through a wholly-owned subsidiary of the Operating Partnership, completed the acquisition of an approximately 3,800-square-foot restaurant property leased to Raising Cane’s located in San Antonio, Texas. The restaurant property, which also features a drive-thru, is subject to a triple-net lease whereby the tenant is responsible for all property expenses including taxes, insurance and maintenance. The lease expires on February 28, 2028, with five, 5-year lease renewal options which allows Raising Cane’s to extend the term of its lease for up to 25 additional years. The property is expected to generate $1,600,672 in total rental revenue over the course of its remaining lease term. The contract purchase price for the property is $3,607,424 which was funded with the Company’s available cash on hand. The seller of the property was not affiliated with the Company or its affiliates. | NOTE 11. SUBSEQUENT EVENTS The Company evaluates subsequent events until the date the consolidated financial statements are issued. Significant subsequent events are described below: Name Change of the Company Effective January 22, 2021, the Company filed Articles of Amendment in the State of Maryland solely to change the Company’s name to Modiv Inc. and also amended and restated its Bylaws solely to reflect such name change. Reverse Stock Split Effective February 1, 2021, with the authorization of the board of directors, the Company filed Articles of Amendment to the Company’s charter in the State of Maryland in order to effect a 1: 3 Termination of Public Offering Effective January 27, 2021, the Company, with the approval of the board of directors, terminated the Company’s public offering of up to $800,000,000 of the Company’s shares which was being conducted pursuant to the Follow-on Offering. In connection with the termination of the Follow-on Offering, the Company stopped accepting investor subscriptions on January 22, 2021. As of January 27, 2021, the Company had $600,547,672 of unsold shares in the Follow-on Offering, which were deregistered with the SEC. 2021 DRP Offering On January 22, 2021, the Company filed a registration statement on Form S-3 (File No. 333-252321) to register a maximum of $100,000,000 of additional shares of Class C common stock to be issued pursuant to the amended and restated DRP. The Company commenced offering shares of Class C common stock pursuant to the 2021 DRP Offering upon termination of the Follow-on Offering. Offering Status Through February 28, 2021, the Company had sold 6,748,695 shares (adjusted for the 1:3 reverse stock split) of Class C common stock for aggregate gross offering proceeds of $199,861,618, which included 817,355 shares (adjusted for the 1:3 reverse stock split) of Class C common stock sold under its DRP for gross proceeds of $23,093,575. As of February 28, 2021, the Company had sold 63,876 shares (adjusted for the 1:3 reverse stock split) of Class S common stock in the Class S Offering, for aggregate gross offering proceeds of $1,935,770, which included 2,172 shares (adjusted for the 1:3 reverse stock split) of Class S common stock sold under its DRP for gross proceeds of $58,606. Distributions The Company paid the December 2020 distribution of $705,596 on January 22, 2021, based on the daily distribution rate of $ 0.00287670 1.05 21.01 The Company paid the January 2021 distribution of $695,768 on February 25, 2021, based on the daily distribution rate of $ 0.00287670 1.05 21.01 The Company paid the February 2021 distribution of $620,788 on March 25, 2021, based on the daily distribution rate of $ 0.00287670 1.05 23.03 On March 25, 2021, the Company’s board of directors declared distributions based on daily record dates for the period April 1, 2021 through June 30, 2021 at rate of $ 0.00287670 1.05 23.03 Redeemable Common Stock From January 1, 2021 to March 3, 2021, the Company repurchased 481,939 shares (adjusted for the 1:3 reverse stock split) of Class C common stock for $10,375,064 and no shares of Class S common stock. Extension of Leases Effective January 21, 2021, the Company extended the lease terms of its Dollar General properties located in Lakeside, Ohio and in Castalia, Ohio from June 1, 2030 to May 31, 2035 for minimum annual rents increasing annually in exchange for one month of free rent, which amounted to $6,753 and $6,610 for the Lakeside and Castalia properties, respectively. Effective March 1, 2021, the Company also extended the lease term of its Northrop Grumman property located in Melbourne, Florida from May 31, 2021 to May 31, 2026 for minimum annual rents increasing annually. The Company paid a leasing commission of $128,538 to the tenants' brokers and $128,538 to Northrop Grumman as a credit for additional tenant improvement costs in connection with this extension of the Northrop Grumman lease term. The Company also agreed to provide tenant improvements (including roof, HVAC and other improvements) that it estimates will cost approximately $1,150,000 in connection with this extension. Sale of Real Estate Investments On January 7, 2021, the Company completed the sale of its Roseville, California retail property which was leased to the operator of a Chevron gas station for $4,050,000, which generated net proceeds of $3,914,909 after payment of commissions and closing costs. On January 29, 2021, the Company completed the sale of its Sacramento, California retail property which was leased to EcoThrift for $5,375,300, which generated net proceeds of $2,684,225 after repayment of the existing mortgage, commissions and closing costs. On February 12, 2021, the Company completed the sale of its San Jose, California retail property which was leased to the operator of a Chevron gas station for $4,288,888, which generated net proceeds of $4,055,657 after payment of commissions and closing costs. Mortgage Notes Payable On March 5, 2021, the Company refinanced the following mortgage notes: December 31, 2020 New Original New Properties Principal Amount Principal Amount Prior Interest Rate New Interest Rate Maturity Date Maturity Date Levins $ 2,032,332 $ 2,700,000 3.74 % 3.75 % 3/5/2021 3/16/2026 Dollar General Bakersfield $ 2,268,922 $ 2,280,000 3.38 % 3.65 % 3/5/2021 3/16/2028 PMI Preclinical $ 4,020,418 $ 5,400,000 3.38 % 3.75 % 3/5/2021 3/16/2026 GSA (MSHA) $ 1,752,092 $ 1,756,000 3.13 % 3.65 % 8/5/2021 3/16/2026 The maturity date for the loan on the Levins property was extended from its original date of January 5, 2021 to March 5, 2021 prior to the refinancing described above. Termination of Swap Agreement On March 5, 2021, the Company terminated the swap agreement related to the Company's GSA (MSHA) property mortgage loan at a cost of $9,900 in connection with the refinancing of this property described above. New Revolving Credit Facility On March 29, 2021, the Company entered into the New Credit Facility for an aggregate line of credit of $22,000,000 with a maturity date of March 30, 2023 which replaced the Unsecured Credit Facility. The Company borrowed $6,000,000 under the New Credit Facility and repaid the $6,000,000 that was owed to PMB on March 31, 2021. The New Credit Facility provides the Company with a $17,000,000 revolving line of credit for real estate acquisitions (including the $6,000,000 borrowed to repay PMB) and an additional $5,000,000 revolving line of credit for working capital. Under the terms of the New Credit Facility, the Company will pay a variable rate of interest on outstanding amounts equal to one percentage point over the prime rate published in The Wall Street Journal, provided that the interest rate in effect on any one day shall not be less than 4.75% per annum. The Company paid Banc of California origination fees of $77,000 in connection with the New Credit Facility and will pay an unused commitment fee of 0.15% per annum of the unused portion of the New Credit Facility, charged quarterly in arrears based on the average unused commitment available under the New Credit Facility. The New Credit Facility is secured by substantially all of the Company’s tangible and intangible assets, including intellectual property. The New Credit Facility requires the Company to maintain a minimum debt service coverage ratio of 1.25 to 1.00 and minimum tangible NAV (as defined in the loan agreement) of $120,000,000, measured quarterly. Mr. Wirta, the Company’s Chairman, has guaranteed the $6,000,000 initial borrowing, which guarantee will expire upon repayment of the $6,000,000 which is due by September 30, 2021. Mr. Wirta has also guaranteed the $5,000,000 revolving line of credit for working capital. On March 29, 2021, the Company entered into an updated indemnification agreement with Mr. Wirta and the Wirta Trust with respect to their guarantees of borrowings under the New Credit Facility. Distribution Reinvestment Plan Amendment On January 22, 2021, with the authorization of the board of directors, the Company amended and restated its DRP with respect to the Company's shares of Class C common stock in order to reflect its name change to Modiv Inc. and to remove the ability of the Company’s stockholders to elect to reinvest only a portion of their cash distributions in shares through the DRP so that investors who elect to participate in the amended and restated DRP must reinvest all cash distributions in shares. In addition, the amended and restated DRP provides for determinations by the board of directors of the NAV per share more frequently than annually. The amended and restated DRP was effective with respect to distributions paid in February 2021. Updated Estimated NAV Per Share On January 27, 2021, the Company’s board of directors approved and established an updated estimated NAV per share of the Company’s Class C common stock and Class S common stock of $ 23.03 Share Repurchase Programs On February 1, 2021, with the authorization of the board of directors, the Company amended and restated its Class C SRP in order to (i) revise the minimum holding period before a stockholder may participate in the Class C SRP from 90 days to six months, (ii) revise the limitations on the share repurchase price so that shares held for less than two years will be repurchased at 98% of the most recently published NAV per share and shares held for at least two years will be repurchased at 100% of the most recently published NAV per share (as opposed to a repurchase price of 97% of the most recently published NAV per share for shares held less than one year, 98% of the most recently published NAV per share for shares held for more than one year but less than two years, 99% of the most recently published NAV per share for shares held for more than two years but less than three years, and 100% of the most recently published NAV per share for shares held for at least three years), (iii) increase the minimum share value (based on the most recently published NAV per share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum share value, from $500 to $1,000, and (iv) include language that provides that the Class C SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. The minimum holding period before a stockholder may participate in the Class C SRP for shares purchased prior to February 1, 2021 will remain at 90 days. With the authorization of the board of directors, the Company also amended and restated its Class S SRP on February 1, 2021 in order to (i) allow the Company to waive the minimum one year holding period before a holder of Class S shares may participate in the Class S SRP in the event of extraordinary circumstances which would place undue hardship on a stockholder, (ii) increase the minimum Class S share value (based on the most recently published NAV per Class S share) at which the Company has the right to repurchase all of a stockholder’s shares, if as a result of a repurchase request a stockholder holds less than the minimum Class S share value, from $500 to $1,000, and (iii) include language that provides that the Class S SRP will automatically terminate if the Company’s shares of common stock are listed on any national securities exchange. Grant of Partnership Interest to Employees On January 25, 2021, the compensation committee of the Company's board of directors recommended, and the board of directors approved, the grant of 120,000 Class R OP Units to Mr. Halfacre for his 2020 compensation and 512,000 Class R OP Units to Mr. Halfacre as equity incentive compensation for the next three years, and the grant of 100,000 Class R OP Units to Mr. Pacini as equity incentive compensation for the next three years. An additional 348,000 Class R OP Units were granted to the rest of the employees of the Company. The Class R OP Units vest on March 31, 2024 and are then convertible into Class C OP Units at a conversion ratio of 1 2.5 1.05 Broker-Dealer Effective January 31, 2021, the Company and NCPS terminated their Dealer Manager Agreement, dated January 2, 2020, pursuant to which NCPS had agreed to act as dealer manager in connection with the Follow-on Offering. Effective January 31, 2021, NCPS and the Company entered into a new Dealer Manager Agreement pursuant to which NCPS has agreed to act as dealer manager in connection with investments in the Company by accredited investors. Special Purpose Acquisition Company To further the Company’s mission of being the leading provider of alternative real estate-related products, and to capitalize on the current opportunity in today’s public marketplace, the Company is sponsoring MACS publicly filed its registration statement on Form S-1 with the SEC on March 24, 2021 and plans to raise $100,000,000, or $115,000,000 if the over-allotment option is exercised, in its IPO. In connection with the public filing of the Form S-1, MVF deposited $4,500,000 in escrow with the attorneys for MACS. The $4,500,000 will be released from escrow upon completion of the IPO and used to purchase 9,000,000 warrants to purchase additional shares of MACS. Each warrant has the right to purchase 0.5 share of MACS common stock and can be exercised at a strike price of $ 11.50 MACS was formed for the purpose of entering into a business combination with one or more businesses or entities, and intends to focus on targets located in North America that are focused on fintech and proptech, with a focus on companies whose core purpose is related to the real estate industry. Within those parameters, MACS intends to pursue a business combination with companies that use technology driven platforms and solutions to disrupt or revolutionize the real estate capital markets, transactional marketplaces and investment management industry. |
SUMMARY OF SIGNIFICANT ACOUNT_3
SUMMARY OF SIGNIFICANT ACOUNTING POLICIES (FY) (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and the rules and regulations of the SEC. Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. Such unaudited condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, which is responsible for their integrity and objectivity. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2021. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which are normal and recurring, necessary to fairly state the Company's financial position, results of operations and cash flows. All significant intercompany balances and transactions are eliminated in consolidation. The unaudited condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the audited financial statements. | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. The Company's financial statements, and the financial statements of the Operating Partnership, including its wholly-owned subsidiaries, are consolidated in the accompanying consolidated financial statements. The portion of the Operating Partnership which is not wholly-owned by the Company is presented as a noncontrolling interest. All significant intercompany balances and transactions are eliminated in consolidation. The accompanying consolidated financial statements and related notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in such consolidated financial statements and related notes. Actual results could differ materially from those estimates. |
Noncontrolling Interest in Consolidated Entities | Noncontrolling Interests in the Operating Partnership The Company accounts for the noncontrolling interests in its Operating Partnership in accordance with the related accounting guidance. Due to the Company's control of the Operating Partnership through its general partnership interest therein and the limited rights of the limited partners, the Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company, and the limited partner interests not held by the Company are reflected as noncontrolling interests in the accompanying unaudited condensed consolidated balance sheets and statements of equity. The noncontrolling interests were issued on December 31, 2019 and represent non-voting, non-dividend accruing interests with no allocation of profits or losses. As described in Note 11, the interests were not able to be converted or exchanged prior to (i) December 31, 2020, the one-year anniversary of the closing of the Self-Management Transaction (in the case of the units of Class M limited partnership interest (“Class M OP Units”) in the Operating Partnership), or (ii) the expiration of the Lockup Period (as defined in Note 11) (in the case of the units of Class P limited partnership interest (“Class P OP Units”) in the Operating Partnership). As of June 30, 2021, no interests have been converted or exchanged. | Noncontrolling Interest in Consolidated Entities The Company accounts for the noncontrolling interest in its Operating Partnership in accordance with the related accounting guidance. Due to the Company's control of the Operating Partnership through its general partnership interest therein and the limited rights of the limited partners, the Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company, and the limited partner interests are reflected as a noncontrolling interest in the accompanying consolidated balance sheets. As described in Note 3 |
Business Combinations | Business Combinations The Company accounts for business combinations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”) and applicable Accounting Standards Updates (each, an “ASU”), whereby the total consideration transferred is allocated to the assets acquired and liabilities assumed, including amounts attributable to any non-controlling interests, when applicable, based on their respective estimated fair values as of the date of acquisition. Goodwill represents the excess of consideration transferred over the estimated fair value of the net assets acquired in a business combination. ASC 805 defines a business as an integrated set of activities and assets (collectively, a “set”) that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. To be considered a business, the set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. ASC 805 provides a practical screen to determine when a set would not be considered a business. If the screen is not met and further assessment determines that the set is not a business, then the set is an asset acquisition. The primary difference between a business combination and an asset acquisition is that an asset acquisition requires cost accumulation and allocation at relative fair value. Acquisition costs are capitalized for an asset acquisition and expensed for a business combination. | Business Combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations ASC 805 defines business as an integrated set of activities and assets (collectively, a “set”) that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. To be considered a business, the set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. ASC 805 provides a practical screen to determine when a set would not be considered a business. If the screen is not met and further assessment determines that the set is not a business, then the set is an asset acquisition. The primary difference between a business combination and an asset acquisition is that an asset acquisition requires cost accumulation and allocation at relative fair value whereas in a business combination the total consideration transferred is allocated among the fair value of the identifiable tangible and intangible assets and liabilities assumed. Acquisition costs are capitalized for an asset acquisition and expensed for a business combination (see Note 3 |
Revenue Recognition | Revenue Recognition The Company adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”), effective January 1, 2018. The Company’s revenue impacted by ASU No. 2014-09 included revenue generated by sales of real estate, other operating income and tenant reimbursements for substantial services earned at the Company’s properties. Such revenues are recognized when the services are provided and the performance obligations are satisfied. Tenant reimbursements, consisting of amounts due from tenants for common area maintenance, property taxes and other recoverable costs, are recognized in rental income subsequent to the adoption of Topic 842, as discussed below, in the period the recoverable costs are incurred. Tenant reimbursements, for which the Company pays the associated costs directly to third-party vendors and is reimbursed by the tenants, are recognized and recorded on a gross basis. The Company adopted FASB ASU No. 2016-02, Leases (Topic 842), and the related FASB ASU Nos. 2018-10, 2018-11, 2018-20 and 2019-01 effective January 1, 2019, which provide practical expedients, technical corrections and improvements for certain aspects of ASU 2016-02, on a modified retrospective basis (collectively, “Topic 842”). Topic 842 establishes a single comprehensive model for entities to use in accounting for leases. Topic 842 applies to all entities that enter into leases. Lessees are required to report assets and liabilities that arise from leases. Lessor accounting has largely remained unchanged; however, certain refinements were made to conform with revenue recognition guidance, specifically related to the allocation and recognition of contract consideration earned from lease and non-lease revenue components. Topic 842 impacts the Company's accounting for leases primarily as a lessor. However, Topic 842 also impacts the Company's accounting as a lessee but is considered not material. As a lessor, the Company's leases with tenants generally provide for the lease of real estate properties, as well as common area maintenance, property taxes and other recoverable costs. To reflect recognition as one lease component, rental income and tenant reimbursements and other lease related property income that meet the requirements of the practical expedient provided by ASU No. 2018-11 have been combined under rental income in the Company's unaudited condensed consolidated statements of operations. For the three months ended June 30, 2021 and 2020, tenant reimbursements included in rental income amounted to $1,703,974 and $1,538,586, respectively, and for the six months ended June 30, 2021 and 2020, tenant reimbursements included in rental income amounted to $3,395,361 and $3,899,505, respectively. The Company recognizes rental income from tenants under operating leases on a straight-line basis over the noncancelable term of the lease when collectability of such amounts is reasonably assured. Recognition of rental income on a straight-line basis includes the effects of rental abatements, lease incentives and fixed and determinable increases in lease payments over the lease term. If the lease provides for tenant improvements, management of the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) 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. Tenant reimbursements of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period the expenses are incurred and presented gross if the Company is the primary obligor and, with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. In instances where the operating lease agreement has an early termination option, the termination penalty is based on a predetermined termination fee or based on the unamortized tenant improvements and leasing commissions. The Company evaluates the collectability of rents and other receivables on a regular basis based on factors including, among others, payment history, credit rating, the asset type, and current economic conditions. If the Company’s evaluation of these factors indicates it may not recover the full value of the receivable, it provides an allowance against the portion of the receivable that it estimates may not be recovered. This analysis requires the Company to determine whether there are factors indicating a receivable may not be fully collectible and to estimate the amount of the receivable that may not be collected. | Revenue Recognition The Company adopted FASB Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606 The Company adopted FASB ASU No. 2016-02 “ Leases (Topic 842) As a lessor, the Company's leases with tenants generally provide for the lease of real estate properties, as well as common area maintenance, property taxes and other recoverable costs. Under Topic 842, the lease of space is considered a lease component while the common area maintenance, property taxes and other recoverable costs billings are considered nonlease components, which fall under revenue recognition guidance in ASU No. 2014-09. However, upon adopting the guidance in Topic 842, the Company determined that its tenant leases met the criteria to apply the practical expedient provided by ASU No. 2018-11 to recognize the lease and non-lease components together as one single component. This conclusion was based on the consideration that (1) the timing and pattern of transfer of the nonlease components and associated lease component are the same, and (2) the lease component, if accounted for separately, would be classified as an operating lease. As the lease of properties is the predominant component of the Company's leasing arrangements, the Company accounted for all lease and nonlease components as one-single component under Topic 842. To reflect recognition as one lease component, rental income and tenant reimbursements and other lease related property income that meet the requirements of the practical expedient provided by ASU No. 2018-11 have been combined under rental income subsequent to the adoption of Topic 842 for the year ended December 31, 2019 in the Company's consolidated statements of operations. For the years ended December 31, 2020 and 2019, tenant reimbursements included in rental income amounted to $7,028,808 and $4,857,794, respectively. The Company recognizes rental income from tenants under operating leases on a straight-line basis over the noncancelable term of the lease when collectability of such amounts is reasonably assured. Recognition of rental income on a straight-line basis includes the effects of rental abatements, lease incentives and fixed and determinable increases in lease payments over the lease term. If the lease provides for tenant improvements, management of the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) 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. Tenant reimbursements of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period the expenses are incurred and presented gross if the Company is the primary obligor and, with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. In instances where the operating lease agreement has an early termination option, the termination penalty is based on a predetermined termination fee or based on the unamortized tenant improvements and leasing commissions. The Company evaluates the collectability of rents and other receivables on a regular basis based on factors including, among others, payment history, credit rating, the asset type, and current economic conditions. If the Company’s evaluation of these factors indicates it may not recover the full value of the receivable, it provides an allowance against the portion of the receivable that it estimates may not be recovered. This analysis requires the Company to determine whether there are factors indicating a receivable may not be fully collectible and to estimate the amount of the receivable that may not be collected. |
Gain or Loss on Sale of Real Estate Property | Gain or Loss on Sale of Real Estate Property The Company recognizes gain or loss on sale of real estate property when the Company has executed a contract for sale of the property, transferred controlling financial interest in the property to the buyer and determined that it is probable that the Company will collect substantially all of the consideration for the property. The Company's real estate property sale transactions for the six months ended June 30, 2021 met these criteria at closing. There were no sales transactions for the three months ended June 30, 2021. When properties are sold, operating results of the properties remain in continuing operations, and any associated gain or loss from the disposition is included in gain or loss on sale of real estate investments in the Company’s accompanying unaudited condensed consolidated statements of operations. | Gain or Loss on Sale of Real Estate Property The Company recognizes gain or loss on sale of real estate property when the Company has executed a contract for sale of the property, transferred controlling financial interest in the property to the buyer and determined that it is probable that the Company will collect substantially all of the consideration for the property. The Company's real estate property sale transactions for the year ended December 31, 2020 met these criteria at closing. Operating results of the property that is sold remains in continuing operations, and any associated gain or loss from the disposition is included in gain or loss on sale of real estate investments in the Company’s accompanying consolidated statements of operations. |
Bad Debts and Allowances for Tenant and Deferred Rent Receivables | Bad Debts and Allowances for Tenant and Deferred Rent Receivables The Company's determination of the adequacy of its allowances for tenant receivables includes a binary assessment of whether or not the amounts due under a tenant’s lease agreement are probable of collection. For such amounts that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the lease term. For such amounts that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. In addition, for tenant and deferred rent receivables deemed probable of collection, the Company also may record an allowance under other authoritative GAAP depending upon the Company's evaluation of the individual receivables, specific credit enhancements, current economic conditions, and other relevant factors. Such allowances are recorded as increases or decreases through rental income in the Company's consolidated statements of operations. With respect to tenants in bankruptcy, management makes 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 allowance 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. | |
Advertising Costs | Advertising Costs The Company incurred advertising costs charged to general and administrative expenses for the year ended December 31, 2020 aggregating $607,787. In 2019, the advertising costs relating to the Offerings were paid by the Former Advisor through September 30, 2019. These amounts were reimbursed to the Former Advisor as organizational and offering costs to the extent they did not exceed the 3% limit as further discussed in Note 9 | |
Income Taxes | Income Taxes The Company elected to be taxed as a REIT for U.S. federal income tax purposes under Section 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), beginning with its taxable year ended December 31, 2016. The Company expects to operate in a manner that will allow it to continue to qualify as a REIT for U.S. federal income tax purposes. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including meeting various tests regarding the nature of the Company's assets and income, the ownership of the Company's outstanding stock and distribution of at least 90% of the Company’s annual REIT taxable income to its 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 U.S. federal income tax to the extent it distributes qualifying dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. 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 U.S. 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. The Company has concluded that there are no significant uncertain tax positions requiring recognition in its consolidated financial statements. Neither the Company nor its subsidiaries has been assessed material interest or penalties by any major tax jurisdictions. The Company’s evaluations were performed for the tax years ended December 31, 2020 and 2019. As of December 31, 2020, the returns for calendar years 2016, 2017, 2018 and 2019 remain subject to examination by major tax jurisdictions. | |
Per Share Data | Per Share Data The Company reports a dual presentation of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted EPS uses the treasury stock method or the if-converted method, where applicable, to compute for the potential dilution that would occur if dilutive securities or commitments to issue common stock were exercised. Diluted EPS is the same as Basic EPS for the three and six months ended June 30, 2021 and 2020 as the Company had a net loss for all reported periods. As of June 30, 2021, there were 657,949.5 Class M OP Units, 56,029 Class P OP Units and 358,670 units of Class R limited partnership interest (“Class R OP Units”), net of forfeiture of 1,330 units (adjusted for the 1: 3 1.6667 1 1 The Company has presented the basic and diluted net loss per share amounts on the accompanying unaudited condensed consolidated statements of operations for Class C and Class S share classes as a combined common share class. Application of the two-class method for allocating net loss in accordance with the provisions of ASC 260, Earnings per Share, would have resulted in a net loss of $(0.13) and $(0.28) per share of Class C common stock for the three months ended June 30, 2021 and 2020, respectively, and a net loss of $(0.13) and $(0.28) per share of Class S common stock for the three months ended June 30, 2021 and 2020, respectively. The two-class method would have resulted in a net loss per share of $(0.25) and $(6.39) of Class C common stock for the six months ended June 30, 2021 and 2020, respectively, and $(0.25) and $(6.39) of Class S common stock for the six months ended June 30, 2021 and 2020, respectively. Any difference in net loss per share if allocated under this method primarily reflects the lower effective distributions per share for Class S stockholders as a result of the payment of the deferred commission to the Class S distributor of these shares, and also reflects the impact of the timing of the declaration of the distributions relative to the time the shares were outstanding. | Per Share Data The Company reports a dual presentation of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted EPS uses the treasury stock method or the if-converted method, where applicable, to compute for the potential dilution that would occur if dilutive securities or commitments to issue common stock were exercised. Diluted EPS is the same as Basic EPS for the years ended December 31, 2020 and 2019 as the Company had a net loss for both years. As of both December 31, 2020 and 2019, there were 657,949.5 Class M OP Units and 56,029 Class P OP Units, respectively, that were convertible to Class C OP Units (defined below) at a conversion ratio of 1.6667 3 Note 3 1 The Company has presented the basic and diluted net loss per share amounts on the accompanying consolidated statements of operations for Class C and Class S share classes as a combined common share class. Application of the two-class method for allocating net loss in accordance with the provisions of ASC 260, Earnings per Share Distributions declared per share of Class C common stock were $ 1.46 2.11 3 1.46 2.11 3 |
Fair Value Measurements and Disclosures | Fair Value Disclosures Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an existing price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value for certain financial instruments is derived using valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value: Cash and cash equivalents, restricted cash, deposit for investment in special purpose acquisition company, receivable from sale of real estate property, tenant receivables, prepaid expenses and other assets and accounts payable, accrued and other liabilities: These balances approximate their fair values due to the short maturities of these items. Derivative Instruments: The Company’s derivative instruments are presented at fair value in the accompanying unaudited condensed consolidated balance sheets. The valuation of these instruments is determined using a proprietary model that utilizes observable inputs. As such, the Company classifies these inputs as Level 2 inputs. The proprietary model uses the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and volatility. The fair values of interest rate swaps are estimated using the market standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit risks to the contracts, are incorporated in the fair values to account for potential nonperformance risk. Goodwill and Intangible Assets: The fair value measurements of goodwill and intangible assets are considered Level 3 nonrecurring fair value measurements. For goodwill, fair value measurement involves the determination of fair value of a reporting unit. The Company uses a Monte Carlo simulation model to estimate future performance, generating the fair value of the reporting unit's business. For intangible assets, fair value measurements include assumptions with inherent uncertainty, including projected offerings volumes and related projected revenues and long-term growth rates, among others. The carrying value of intangible assets is at risk of impairment if future projected offerings proceeds, revenues or long-term growth rates are lower than those currently projected. Credit facilities and economic relief note payable: The fair values of the Company’s credit facilities and economic relief note payable approximate the carrying values of the credit facility and economic relief note payable as their interest rates and other terms are comparable to those available in the market place for a similar credit facility and short-term note, respectively. Mortgage notes payable: The fair value of the Company’s mortgage notes payable is estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. 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 or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs. | Fair Value Measurements and Disclosures Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value for certain financial instruments is derived using a combination of market quotes, pricing models, and other valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value: Cash and cash equivalents; restricted cash; tenant receivables; prepaid expenses and other assets; accounts payable, accrued and other liabilities; and due to affiliates Derivative instruments Goodwill and Intangible Assets Unsecured credit facility Mortgage notes payable Related party transactions Note 9 |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Cash and cash equivalents are stated at cost, which approximates fair value. The Company’s cash and cash equivalents balance may exceed federally insurable limits. The Company mitigates this risk by depositing funds with major financial institutions; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. | |
Restricted Cash | Restricted Cash Restricted cash is comprised of funds which are restricted for use as required by certain lenders in conjunction with an acquisition or debt financing or modification and for on-site and tenant improvements or property taxes. Restricted cash as of June 30, 2021 and December 31, 2020 amounted to $2,508,471 and $129,118, respectively, for the properties discussed below and other lender reserves. Under the terms of the Company’s June 2021 refinancing of mortgages on its properties leased to Northrop Grumman and L3Harris with Banc of California as described in Note 7, the Company established restricted cash accounts at Banc of California with $1,400,000 and $1,000,000 held for the Northrop Grumman and L3Harris properties, respectively, to fund building improvements, tenant improvements and leasing commissions. Pursuant to lease agreements, the Company had an obligation to pay for tenant improvements as of June 30, 2021 and December 31, 2020 of $189,136 and $60,598, respectively for tenant improvements to be incurred by tenants for which funds restricted by the lender were available. As of June 30, 2021 and December 31, 2020, the Company's restricted cash held to fund other improvements and leasing commissions totaled $2,210,864 and $32,086, respectively. | Restricted Cash Restricted cash is comprised of funds which are restricted for use as required by certain lenders in conjunction with an acquisition or debt financing and for on-site and tenant improvements or property taxes. Restricted cash as of December 31, 2020 and 2019 amounted to $129,118 and $113,362, respectively. Pursuant to lease agreements, the Company has obligations to pay for $60,598 and $98,329 in site and tenant improvements to be incurred by tenants as of December 31, 2020 and 2019, respectively, including a 72.7% share of the tenant improvements for the Santa Clara property. At December 31, 2020 and 2019, the Company’s restricted cash held to fund these improvements totaled $92,684 and $92,684, respectively. As of December 31, 2020 and 2019, the Company also held restricted cash of $36,434 and $20,678 to fund an impounded property tax. |
Real Estate Investments | Real Estate Investments Real Estate Acquisition Valuation The Company records acquisitions that meet the definition of a business as a business combination. If the acquisition does not meet the definition of a business, the Company records the acquisition as an asset acquisition. Under both methods, all assets acquired and liabilities assumed are measured based on their acquisition-date fair values. There were no real estate acquisitions during 2020. All real estate acquisitions in 2019 were treated as asset acquisitions. Transaction costs that are related to a business combination are charged to expense as incurred. Transaction costs that are related to an asset acquisition are capitalized as incurred. The Company assesses the acquisition date fair values of all tangible assets, identifiable intangibles, and assumed liabilities using methods similar to those used by independent appraisers, generally utilizing a discounted cash flow analysis that applies appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining noncancelable term of above-market in-place leases plus any extended term for any leases with below-market renewal options. The Company amortizes any recorded above-market or below-market lease values as a reduction or increase, respectively, to rental income over the remaining noncancelable terms of the respective lease, including any below-market renewal periods. The Company estimates the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease-up periods, considering current market conditions. In estimating carrying costs, the Company generally includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease up periods. The Company amortizes the value of tenant origination and absorption costs to depreciation and amortization expense over the remaining term of the respective lease. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property-operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, and the number of years the property will be held for investment. Therefore, the Company classifies these inputs as Level 3 inputs. The use of inappropriate assumptions would result in an incorrect valuation of the Company’s acquired tangible assets, identifiable intangibles and assumed liabilities, which would impact the amount of the Company’s net income (loss). | |
Depreciation and Amortization | Depreciation and Amortization Real estate costs related to the acquisition and improvement of properties are capitalized and depreciated or amortized over the expected useful life of the asset on a straight-line basis. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset and are expensed as incurred. Significant replacements and betterments are capitalized. The Company anticipates the estimated useful lives of its assets by class to be generally as follows: ● Buildings 10 - 48 years ● Site improvements Shorter of 15 years or remaining lease term ● Tenant improvements Shorter of 15 years or remaining lease term ● Tenant origination and absorption costs, and above-/below-market lease intangibles Remaining lease term | |
Impairment of Real Estate and Related Intangible Assets | Impairment of Investment in Real Estate Properties The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of real estate assets may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of real estate assets may not be recoverable, management assesses whether the carrying value of the assets will be recovered through the future undiscounted operating cash flows expected from the use of and eventual disposition of the property. If, based on the analysis, the Company does not believe that it will be able to recover the carrying value of the asset, the Company records an impairment charge to the extent the carrying value exceeds the estimated fair value of the asset. As more fully discussed in Note 3, the Company recorded impairment charges of $349,457 and $9,506,525 related to one and four of its real estate properties, respectively, during the three and six months ended June 30, 2020, respectively. The Company did not incur any impairment charges for its real estate properties during the three and six months ended June 30, 2021. However, the Company recognized a reversal of a previously recognized impairment charge of $ 400,999 | Impairment of Investment in Real Estate Properties The Company regularly monitors events and changes in circumstances that could indicate that the carrying amounts of real estate assets may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of real estate assets may not be recoverable, management assesses whether the carrying value of the assets will be recovered through the future undiscounted operating cash flows expected from the use of and eventual disposition of the property. If, based on the analysis, the Company does not believe that it will be able to recover the carrying value of the asset, the Company records an impairment charge to the extent the carrying value exceeds the estimated fair value of the asset. As more fully discussed in Note 4 |
Leasing Costs | Bad Debts and Allowances for Tenant and Deferred Rent Receivables The Company's determination of the adequacy of its allowances for tenant receivables includes a binary assessment of whether or not the amounts due under a tenant’s lease agreement are probable of collection. For such amounts that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the lease term. For such amounts that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. In addition, for tenant and deferred rent receivables deemed probable of collection, the Company also may record an allowance under other authoritative GAAP depending upon the Company's evaluation of the individual receivables, specific credit enhancements, current economic conditions, and other relevant factors. Such allowances are recorded as increases or decreases through rental income in the Company's unaudited condensed consolidated statements of operations. With respect to tenants in bankruptcy, management makes 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 allowance for the tenant’s receivable balance and generally will not recognize subsequent rental income until cash is received or until the tenant is no longer in bankruptcy and has the ability to make rental payments. Leasing Costs Internal leasing costs and third-party legal fees and leasing commissions are charged to expense as incurred. These expenses are included in legal leasing costs under property expenses in the Company's unaudited condensed consolidated statements of operations. | Leasing Costs Upon adoption of Topic 842, the Company elected to apply the package of practical expedients provided and did not reassess the following as of January 1, 2019: (1) whether any expired or existing contracts are leases or contain leases; (2) the lease classification for any expired or existing leases; and (3) initial direct costs for any existing leases. Under Topic 842, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, beginning January 1, 2019, the Company no longer capitalizes internal leasing costs and third-party legal leasing costs and instead charges these costs to expense as incurred. These expenses are included in legal leasing costs under property expenses in the Company's consolidated statements of operations. The election of the package of practical expedients described above permits the Company to continue to account for its leases that commenced before January 1, 2019 under the previously existing lease accounting guidance for the remainder of their lease terms, and to apply the new lease accounting guidance to leases entered into or acquired commencing or modified after January 1, 2019. |
Real Estate Investments Held for Sale | Real Estate Investments Held for Sale The Company generally considers a real estate investment to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate investment held for sale, net” and “assets related to real estate investment held for sale,” respectively, in the accompanying unaudited condensed consolidated balance sheets. Mortgage notes payable and other liabilities related to real estate investments held for sale are classified as “mortgage notes payable related to real estate investments held for sale, net” and “liabilities related to real estate investments held for sale,” respectively, in the accompanying unaudited condensed consolidated balance sheets. Real estate investments classified as held for sale are no longer depreciated and are reported at the lower of their carrying value or their estimated fair value less estimated costs to sell. Operating results of properties that were classified as held for sale in the ordinary course of business are included in continuing operations in the Company’s accompanying unaudited condensed consolidated statements of operations. | Real Estate Investments Held for Sale The Company considers a real estate investment to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate investment held for sale, net” and “assets related to real estate investment held for sale,” respectively, in the accompanying consolidated balance sheets. Mortgage notes payable and other liabilities related to real estate investments held for sale are classified as “mortgage notes payable related to real estate investments held for sale, net” and “liabilities related to real estate investments held for sale,” respectively, in the accompanying consolidated balance sheets. Real estate investments classified as held for sale are no longer depreciated and are reported at the lower of their carrying value or their estimated fair value less estimated costs to sell. Operating results of properties that were classified as held for sale in the ordinary course of business are included in continuing operations in the Company’s accompanying consolidated statements of operations. |
Unconsolidated Investments | Unconsolidated Investments The Company accounts for investments in entities over which the Company has the ability to exercise significant influence under the equity method of accounting. Under the equity method of accounting, an investment is initially recognized at cost and is subsequently adjusted to reflect the Company’s share of earnings or losses of the investee. The investment is also increased for additional amounts invested and decreased for any distributions received from the investee. Equity method investments are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the investment might not be recoverable. If an equity method investment is determined to be other-than-temporarily impaired, the investment is reduced to fair value and an impairment charge is recorded as a reduction to earnings. | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. The Company evaluates goodwill and other intangible assets for possible impairment in accordance with ASC 350, Intangibles–Goodwill and Other, on an annual basis, or more frequently when events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit has declined below its carrying value. If the carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized. In assessing goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macro-economic, industry-specific and company-specific factors. These factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of such reporting unit is less than its carrying amount, then a quantitative analysis is unnecessary. However, if the Company concludes otherwise, or if it elects to bypass the qualitative analysis, then it is required to perform a quantitative analysis that compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, a goodwill impairment loss is recognized for the lesser of: (a) the amount that the carrying amount of a reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to that reporting unit. Intangible assets consist of purchased customer-related intangible assets, marketing-related intangible assets, developed or acquired technology and other intangible assets. Intangible assets are amortized over their estimated useful lives using the straight-line method ranging from three years to five years. No significant residual value is estimated for intangible assets. An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. The Company evaluates long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. | Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. The Company evaluates goodwill and other intangible assets for possible impairment in accordance with ASC 350, Intangibles–Goodwill and Other In assessing goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macro-economic, industry-specific and company-specific factors. These factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of such reporting unit is less than its carrying amount, then a quantitative analysis is unnecessary. However, if the Company concludes otherwise, or if it elects to bypass the qualitative analysis, then it is required to perform a quantitative analysis that compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, a goodwill impairment loss is recognized for the lesser of: (a) the amount that the carrying amount of a reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to that reporting unit. Intangible assets consist of purchased customer-related intangible assets, marketing related intangible assets, developed or acquired technology and other intangible assets. Intangible assets are amortized over their estimated useful lives using the straight-line method ranging from three years to five years. No significant residual value is estimated for intangible assets. An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. The Company evaluates long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs represent commitment fees, financing coordination fees paid to the Former Advisor, mortgage loan and line of credit fees, legal fees, and other third-party costs associated with obtaining financing and are presented on the Company's balance sheet as a direct deduction from the carrying value of the associated debt liabilities. These costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. Unamortized deferred financing costs related to revolving credit facilities are presented as an asset in periods where there are no outstanding borrowings under the facility. | |
Derivative Instruments | Derivative Instruments The Company enters into derivative instruments for risk management purposes to hedge its exposure to cash flow variability caused by changing interest rates on its variable rate mortgage notes payable. The Company does not enter into derivatives for speculative purposes. The Company records these derivative instruments at fair value on the accompanying consolidated balance sheet. The Company’s mortgage derivative instruments do not meet the hedge accounting criteria and therefore the changes in the fair value are recorded as gains or losses on derivative instruments in the accompanying statement of operations. The gain or loss is included in interest expense. The Company enters into interest rate swaps as a fixed rate payer to mitigate its exposure to rising interest rates on its variable rate notes payable. The value of interest rate swaps is primarily impacted by interest rates, market expectations about interest rates, and the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of the fixed rate payer position and decrease the value of the variable rate payer position. As the remaining life of the interest rate swap decreases, the value of both positions will generally move towards zero. | |
Related Party Transactions | Related Party Transactions The Company recorded all related party fee expense as incurred, subject to certain limitations described in the Company’s Advisory Agreement (see Note 9 | |
Distributions | Distributions The Company intends, although is not legally obligated, to continue to make regular monthly distributions to holders of its shares at least at the level required to maintain REIT status unless the results of operations, general financial condition, general economic conditions or other factors inhibit the Company from doing so. Distributions are authorized at the discretion of the Company’s board of directors, which is directed, in substantial part, by its obligation to cause the Company to comply with the REIT requirements of the Internal Revenue Code. To the extent declared by the board of directors, distributions are payable on the 25th day of the following month. Should the 25th day fall on a weekend, distributions are payable on the first business day thereafter. The following presents the U.S. federal income tax characterization of the distributions paid: Years Ended December 31 2020 2019 Ordinary income $ — $ 0.3825 Non-taxable distribution 1.4600 1.7280 Total $ 1.4600 $ 2.1105 Distribution Reinvestment Plan The Company adopted the DRP through which common stockholders may elect to reinvest the distributions declared on their shares in additional shares of the Company’s common stock in lieu of receiving cash distributions. Through January 21, 2021, stockholders could reinvest any amount up to the amount of the distribution. Effective January 22, 2021, the Company removed the ability of its stockholders to elect to reinvest only a portion of their cash distributions in shares through the DRP so that investors who elect to participate in the amended and restated DRP must reinvest all cash distributions in shares (see Note 11 Participants in the DRP acquire common stock at a price per share equal to the most recently disclosed estimated NAV per share, as determined by the Company’s board of directors. The initial price of the Registered DRP Offering was $30.00 per share (adjusted for the 1: 3 3 3 3 As a result of the significant economic impacts of the COVID-19 pandemic, on May 20, 2020, the Company’s board of directors approved and established an updated estimated NAV per share of the Company’s common stock of $ 21.01 3 21.01 3 23.03 3 | |
Redeemable Common Stock | Redeemable Common Stock The Company has adopted a share repurchase program that enables qualifying stockholders to sell their stock to the Company in limited circumstances. Shares of Class C common stock must be held for 90 days after they have been issued to the applicable stockholder for shares issued prior to February 1, 2021 and six months for shares issued thereafter before the Company will accept requests for repurchase, except for shares acquired pursuant to the Company’s DRP if the applicable stockholder has held its initial investment for at least 90 days for shares issued prior to February 1, 2021 and six months for shares issued thereafter. The Company may, subject to the conditions and limitations described below, repurchase the shares presented to it for cash to the extent the Company has sufficient funds available to fund such repurchases. In accordance with the Company’s share repurchase program for its Class C common stock, prior to February 1, 2021 the per share repurchase price depended on the length of time the redeeming stockholder held such shares as follows: (i) less than one year from the purchase date, 97% of the most recently published NAV per share; (ii) after at least one year but less than two years from the purchase date, 98% of the most recently published NAV per share; (iii) after at least two years but less than three years from the purchase date, 99% of the most recently published NAV per share; and (iv) after at least three years from the purchase date, 100% of the most recently published NAV per share. Effective February 1, 2021, the per share repurchase price depends on the following length of time the redeeming stockholder has held such shares: (i) less than two years from the purchase date, 98% of the most recently published NAV per share; and (ii) after at least two years from the purchase date, 100% of the most recently published NAV per share. The Company’s most recently published NAV, effective as of February 1, 2021, is $ 23.03 3 30.00 3 3 3 3 21.01 3 In accordance with the Company’s share repurchase program for its Class S common stock, shares of Class S common stock are not eligible for repurchase unless they have been held for at least one year. After this holding period has been met, the Company will accept requests for repurchase of Class S shares at the most recently published NAV per share, which, effective as of February 1, 2021, is $ 23.03 3 Stockholders who wish to avail themselves of the share repurchase program must notify the Company by two business days before the end of the month for their shares to be considered for repurchase by the third business day of the following month. The Company records amounts that are redeemable under the share repurchase program as redeemable common stock in its consolidated balance sheets because the shares are redeemable at the option of the holder and therefore their redemption is outside the control of the Company. Therefore, the Company reclassifies such obligations from temporary equity to a liability based upon their respective settlement values. From inception through December 31, 2020, 1,482,188 shares (adjusted for the 1: 3 | |
Limitations on Repurchase | Limitations on Repurchase The Company may, but is not required to, use available cash not otherwise dedicated to a particular use to pay the repurchase price, including cash proceeds generated from the DRP, securities offerings, operating cash flow not intended for distributions, debt financings and asset sales. The Company cannot guarantee that it will have sufficient available cash to accommodate all repurchase requests made in any given month. In addition, the Company may not repurchase shares in an amount that would violate the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency. Additional limitations on share repurchases under the share repurchase programs are as follows: • Repurchases per month are limited to no more than 2% of the Company’s most recently determined aggregate NAV, which the Company currently intends to calculate on a quarterly basis within 45 days after the end of each quarter, barring any extenuating circumstances (and calculated as of the last day of the immediately preceding quarter). Repurchases for any calendar quarter are limited to no more than 5% of the Company’s most recently determined aggregate NAV, which means the Company is permitted to repurchase shares with a value of up to an aggregate limit of approximately 20% of its aggregate NAV in any 12-month period. • The foregoing repurchase limitations will be based on “net repurchases” during a quarter or month, as applicable. The term “net repurchases” means the excess of the Company’s share repurchases (capital outflows) over the proceeds from the sale of its shares (capital inflows) for a given period. Thus, for any given calendar quarter or month, the maximum amount of repurchases during that quarter or month will be equal to (1) 5% or 2% (as applicable) of the Company’s most recently determined aggregate NAV, plus (2) proceeds from sales of new shares in the current offering (including purchases pursuant to its DRP) since the beginning of a current calendar quarter or month, less (3) repurchase proceeds paid since the beginning of the current calendar quarter or month. • While the Company currently intends to calculate the foregoing repurchase limitations on a net basis, the Company’s board of directors may choose whether the 5% quarterly limit will be applied to “gross repurchases,” meaning that amounts paid to repurchase shares would not be netted against capital inflows. If repurchases for a given quarter are measured on a gross basis rather than on a net basis, the 5% quarterly limit could limit the number of shares repurchased in a given quarter despite the Company receiving a net capital inflow for that quarter. • In order for the Company’s board of directors to change the basis of repurchases from net to gross, or vice versa, the Company will provide notice to its stockholders in a supplement to the prospectus or offering memorandum for the offering of shares or current or periodic report filed with the SEC, as well as in a press release or on its website, at least 10 days before the first business day of the quarter for which the new test will apply. The determination to measure repurchases on a gross basis, or vice versa, will only be made for an entire quarter, and not particular months within a quarter. See Note 11 | |
Restricted Stock Units and Restricted Stock Unit Awards | Restricted Stock and Restricted Stock Unit Awards The fair values of the Operating Partnership's units or restricted stock unit awards issued or granted by the Company are based on an estimated value per share of the Company’s common stock on the date of issuance or grant, adjusted for an illiquidity discount due to the illiquid nature of the underlying equity. Operating Partnership units issued as purchase consideration in connection with the Self-Management Transaction discussed in Note 11 are recorded in equity under noncontrolling interests in the Operating Partnership in the Company's unaudited condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020 and unaudited condensed consolidated statements of equity for the three and six months ended June 30, 2021 and 2020. For units granted to employees of the Company that are not included in the purchase consideration, the fair value of the award is amortized using the straight-line method over the requisite service period of the award, which is generally the vesting period. We have elected to record forfeitures as they occur. The Company determines the accounting classification of equity instruments (e.g. restricted stock units) that are issued as purchase consideration or part of the purchase consideration in a business combination, as either liability or equity, by first assessing whether the equity instruments meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity (“ASC 480-10”), and then in accordance with ASC 815-40, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock (“ASC 815-40”). Under ASC 480-10, equity instruments are classified as liabilities if the equity instruments are mandatorily redeemable, obligate the issuer to settle the equity instruments or the underlying shares by paying cash or other assets, or must or may require an unconditional obligation that must be settled by issuing a variable number of shares. If equity instruments do not meet liability classification under ASC 480-10, the Company assesses the requirements under ASC 815-40, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the equity instruments do not require liability classification under ASC 815-40, in order to conclude equity classification, the Company assesses whether the equity instruments are indexed to its common stock and whether the equity instruments are classified as equity under ASC 815-40 or other applicable GAAP guidance. After all relevant assessments are made, the Company concludes whether the equity instruments are classified as liability or equity. Liability classified equity instruments are required to be accounted for at fair value both on the date of issuance and on subsequent accounting period ending dates, with all changes in fair value after the issuance date recorded in the statements of operations as a gain or loss. Equity classified equity instruments are accounted for at fair value on the issuance date with no changes in fair value recognized after the issuance date. | Restricted Stock Units and Restricted Stock Unit Awards The fair values of the Operating Partnership's units or restricted stock unit awards issued or granted by the Company are based on the most recent NAV per share of the Company’s common stock on the date of issuance or grant. Operating Partnership units issued as purchase consideration in connection with the Self-Management Transaction discussed in Note 3 Note 3 The Company determines the accounting classification of equity instruments (e.g., restricted stock units) that are issued as purchase consideration or part of the purchase consideration in a business combination, as either liability or equity, by first assessing whether the equity instruments meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock If equity instruments do not meet liability classification under ASC 480-10, the Company assesses the requirements under ASC 815-40, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the equity instruments do not require liability classification under ASC 815-40, in order to conclude equity classification, the Company assesses whether the equity instruments are indexed to its common stock and whether the equity instruments are classified as equity under ASC 815-40 or other applicable GAAP guidance. After all relevant assessments are made, the Company concludes whether the equity instruments are classified as liability or equity. Liability classified equity instruments are required to be accounted for at fair value both on the date of issuance and on subsequent accounting period ending dates, with all changes in fair value after the issuance date recorded in the statements of operations as a gain or loss. Equity classified equity instruments are accounted for at fair value on the issuance date with no changes in fair value recognized after the issuance date. |
Segments | Segments The Company has invested in single-tenant income-producing properties. The Company’s real estate properties exhibit similar long-term financial performance and have similar economic characteristics to each other and are managed as one unit by a common management team. As of December 31, 2020 and 2019, the Company aggregated its investments in real estate into one reportable segment. | |
Square Footage, Occupancy and Other Measures | Square Footage, Occupancy and Other Measures Square footage, occupancy and other measures used to describe real estate investments included in the notes to consolidated financial statements are presented on an unaudited basis. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Standards Recently Issued and Not Yet Adopted 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 eases the potential burden in accounting for recognizing the effects of reference rate reform on financial reporting. Such challenges include the accounting and operational implications for contract modifications and hedge accounting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to loan and lease agreements, contracts, hedging relationships, and other transactions affected by reference rate reform. These provisions apply to contract modifications that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discounted because of reference rate reform. Qualifying modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate, and the modification would be considered “minor” so that any existing unamortized deferred loan origination fees and costs would carry forward and continue to be amortized. Qualifying modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, with adoption permitted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments must be applied prospectively for all eligible contract modifications. The Company is currently evaluating the effect that ASU 2020-04 will have on the Company’s consolidated financial statements. | Recent Accounting Pronouncements New Accounting Standards Issued and Adopted 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 In April 2020, the FASB issued a FASB Staff Q&A related to Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic Because of the unprecedented and global nature of the COVID-19 pandemic, the FASB staff is aware that it may be exceedingly challenging for entities to determine whether existing contracts provide enforceable rights and obligations for lease concessions and whether those concessions are consistent with the terms of the contract or are modifications to the contract. As such, the FASB staff believes that it would be acceptable for entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under Topic 842, as though enforceable rights and obligations for those concessions existed (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). Consequently, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in Topic 842 to those contracts. 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. For example, this election is available for concessions that result in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. The FASB staff expects that reasonable judgment will be exercised in making those determinations. Some concessions will provide a deferral of payments with no substantive changes to the consideration in the original contract. A deferral affects the timing, but the amount of the consideration is substantially the same as that required by the original contract. The FASB staff expects that there will be multiple ways to account for those deferrals, none of which the FASB staff believes are more preferable than the others. Two of those methods are: (1) account for the concessions as if no changes to the lease contract were made; under that accounting, a lessor would increase its lease receivable, and a lessee would increase its accounts payable as receivables/payments accrue; in its income statement, a lessor would continue to recognize income, and a lessee would continue to recognize expense during the deferral period; and (2) account for the deferred payments as variable lease payments. The Company has elected to utilize the method wherein the concessions result in additional lease receivable during the deferral period as available under the Topic 842 Q&A for lease concessions related to the effects of the COVID-19 pandemic. The Company's lease concessions related to the effects of the COVID-19 pandemic resulted in additional receivables during the deferral periods which have all been collected as of December 31, 2020. Due to the continuing nature of the COVID-19 pandemic, there may be subsequent impacts from future tenant requests for lease concessions or deferrals for future periods. The Company maintains an inventory of tenants which have or are expected to request lease concessions. Future lease concessions may have an impact on the Company’s business, financial condition and results of operations, but the ultimate impact will largely depend on future developments with respect to the continued spread and treatment of COVID-19, which the Company cannot accurately predict at this time. New Accounting Standards Issued and Not Yet Adopted 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 Qualifying modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate, and the modification would be considered “minor” so that any existing unamortized deferred loan origination fees and costs would carry forward and continue to be amortized. Qualifying modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, with adoption permitted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments must be applied prospectively for all eligible contract modifications. The Company is currently evaluating the effect that ASU 2020-04 will have on the Company’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACOUNT_4
SUMMARY OF SIGNIFICANT ACOUNTING POLICIES (Q2) (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and the rules and regulations of the SEC. Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. Such unaudited condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, which is responsible for their integrity and objectivity. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2021. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which are normal and recurring, necessary to fairly state the Company's financial position, results of operations and cash flows. All significant intercompany balances and transactions are eliminated in consolidation. The unaudited condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the audited financial statements. | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. The Company's financial statements, and the financial statements of the Operating Partnership, including its wholly-owned subsidiaries, are consolidated in the accompanying consolidated financial statements. The portion of the Operating Partnership which is not wholly-owned by the Company is presented as a noncontrolling interest. All significant intercompany balances and transactions are eliminated in consolidation. The accompanying consolidated financial statements and related notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in such consolidated financial statements and related notes. Actual results could differ materially from those estimates. |
Use of Estimates | Use of Estimates The preparation of the unaudited condensed consolidated financial statements and the accompanying notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. These estimates are based on historical experience and, in some cases, assumptions based on current and future market experience, including considerations related to the COVID-19 pandemic (see Notes 3 and 5 for the prior year's impairment charges related primarily to COVID-19). Actual results may differ from those estimates. | |
Noncontrolling Interests in the Operating Partnership | Noncontrolling Interests in the Operating Partnership The Company accounts for the noncontrolling interests in its Operating Partnership in accordance with the related accounting guidance. Due to the Company's control of the Operating Partnership through its general partnership interest therein and the limited rights of the limited partners, the Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company, and the limited partner interests not held by the Company are reflected as noncontrolling interests in the accompanying unaudited condensed consolidated balance sheets and statements of equity. The noncontrolling interests were issued on December 31, 2019 and represent non-voting, non-dividend accruing interests with no allocation of profits or losses. As described in Note 11, the interests were not able to be converted or exchanged prior to (i) December 31, 2020, the one-year anniversary of the closing of the Self-Management Transaction (in the case of the units of Class M limited partnership interest (“Class M OP Units”) in the Operating Partnership), or (ii) the expiration of the Lockup Period (as defined in Note 11) (in the case of the units of Class P limited partnership interest (“Class P OP Units”) in the Operating Partnership). As of June 30, 2021, no interests have been converted or exchanged. | Noncontrolling Interest in Consolidated Entities The Company accounts for the noncontrolling interest in its Operating Partnership in accordance with the related accounting guidance. Due to the Company's control of the Operating Partnership through its general partnership interest therein and the limited rights of the limited partners, the Operating Partnership, including its wholly-owned subsidiaries, are consolidated with the Company, and the limited partner interests are reflected as a noncontrolling interest in the accompanying consolidated balance sheets. As described in Note 3 |
Business Combinations | Business Combinations The Company accounts for business combinations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”) and applicable Accounting Standards Updates (each, an “ASU”), whereby the total consideration transferred is allocated to the assets acquired and liabilities assumed, including amounts attributable to any non-controlling interests, when applicable, based on their respective estimated fair values as of the date of acquisition. Goodwill represents the excess of consideration transferred over the estimated fair value of the net assets acquired in a business combination. ASC 805 defines a business as an integrated set of activities and assets (collectively, a “set”) that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. To be considered a business, the set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. ASC 805 provides a practical screen to determine when a set would not be considered a business. If the screen is not met and further assessment determines that the set is not a business, then the set is an asset acquisition. The primary difference between a business combination and an asset acquisition is that an asset acquisition requires cost accumulation and allocation at relative fair value. Acquisition costs are capitalized for an asset acquisition and expensed for a business combination. | Business Combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations ASC 805 defines business as an integrated set of activities and assets (collectively, a “set”) that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. To be considered a business, the set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. ASC 805 provides a practical screen to determine when a set would not be considered a business. If the screen is not met and further assessment determines that the set is not a business, then the set is an asset acquisition. The primary difference between a business combination and an asset acquisition is that an asset acquisition requires cost accumulation and allocation at relative fair value whereas in a business combination the total consideration transferred is allocated among the fair value of the identifiable tangible and intangible assets and liabilities assumed. Acquisition costs are capitalized for an asset acquisition and expensed for a business combination (see Note 3 |
Revenue Recognition | Revenue Recognition The Company adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”), effective January 1, 2018. The Company’s revenue impacted by ASU No. 2014-09 included revenue generated by sales of real estate, other operating income and tenant reimbursements for substantial services earned at the Company’s properties. Such revenues are recognized when the services are provided and the performance obligations are satisfied. Tenant reimbursements, consisting of amounts due from tenants for common area maintenance, property taxes and other recoverable costs, are recognized in rental income subsequent to the adoption of Topic 842, as discussed below, in the period the recoverable costs are incurred. Tenant reimbursements, for which the Company pays the associated costs directly to third-party vendors and is reimbursed by the tenants, are recognized and recorded on a gross basis. The Company adopted FASB ASU No. 2016-02, Leases (Topic 842), and the related FASB ASU Nos. 2018-10, 2018-11, 2018-20 and 2019-01 effective January 1, 2019, which provide practical expedients, technical corrections and improvements for certain aspects of ASU 2016-02, on a modified retrospective basis (collectively, “Topic 842”). Topic 842 establishes a single comprehensive model for entities to use in accounting for leases. Topic 842 applies to all entities that enter into leases. Lessees are required to report assets and liabilities that arise from leases. Lessor accounting has largely remained unchanged; however, certain refinements were made to conform with revenue recognition guidance, specifically related to the allocation and recognition of contract consideration earned from lease and non-lease revenue components. Topic 842 impacts the Company's accounting for leases primarily as a lessor. However, Topic 842 also impacts the Company's accounting as a lessee but is considered not material. As a lessor, the Company's leases with tenants generally provide for the lease of real estate properties, as well as common area maintenance, property taxes and other recoverable costs. To reflect recognition as one lease component, rental income and tenant reimbursements and other lease related property income that meet the requirements of the practical expedient provided by ASU No. 2018-11 have been combined under rental income in the Company's unaudited condensed consolidated statements of operations. For the three months ended June 30, 2021 and 2020, tenant reimbursements included in rental income amounted to $1,703,974 and $1,538,586, respectively, and for the six months ended June 30, 2021 and 2020, tenant reimbursements included in rental income amounted to $3,395,361 and $3,899,505, respectively. The Company recognizes rental income from tenants under operating leases on a straight-line basis over the noncancelable term of the lease when collectability of such amounts is reasonably assured. Recognition of rental income on a straight-line basis includes the effects of rental abatements, lease incentives and fixed and determinable increases in lease payments over the lease term. If the lease provides for tenant improvements, management of the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) 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. Tenant reimbursements of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period the expenses are incurred and presented gross if the Company is the primary obligor and, with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. In instances where the operating lease agreement has an early termination option, the termination penalty is based on a predetermined termination fee or based on the unamortized tenant improvements and leasing commissions. The Company evaluates the collectability of rents and other receivables on a regular basis based on factors including, among others, payment history, credit rating, the asset type, and current economic conditions. If the Company’s evaluation of these factors indicates it may not recover the full value of the receivable, it provides an allowance against the portion of the receivable that it estimates may not be recovered. This analysis requires the Company to determine whether there are factors indicating a receivable may not be fully collectible and to estimate the amount of the receivable that may not be collected. | Revenue Recognition The Company adopted FASB Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606 The Company adopted FASB ASU No. 2016-02 “ Leases (Topic 842) As a lessor, the Company's leases with tenants generally provide for the lease of real estate properties, as well as common area maintenance, property taxes and other recoverable costs. Under Topic 842, the lease of space is considered a lease component while the common area maintenance, property taxes and other recoverable costs billings are considered nonlease components, which fall under revenue recognition guidance in ASU No. 2014-09. However, upon adopting the guidance in Topic 842, the Company determined that its tenant leases met the criteria to apply the practical expedient provided by ASU No. 2018-11 to recognize the lease and non-lease components together as one single component. This conclusion was based on the consideration that (1) the timing and pattern of transfer of the nonlease components and associated lease component are the same, and (2) the lease component, if accounted for separately, would be classified as an operating lease. As the lease of properties is the predominant component of the Company's leasing arrangements, the Company accounted for all lease and nonlease components as one-single component under Topic 842. To reflect recognition as one lease component, rental income and tenant reimbursements and other lease related property income that meet the requirements of the practical expedient provided by ASU No. 2018-11 have been combined under rental income subsequent to the adoption of Topic 842 for the year ended December 31, 2019 in the Company's consolidated statements of operations. For the years ended December 31, 2020 and 2019, tenant reimbursements included in rental income amounted to $7,028,808 and $4,857,794, respectively. The Company recognizes rental income from tenants under operating leases on a straight-line basis over the noncancelable term of the lease when collectability of such amounts is reasonably assured. Recognition of rental income on a straight-line basis includes the effects of rental abatements, lease incentives and fixed and determinable increases in lease payments over the lease term. If the lease provides for tenant improvements, management of the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) 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. Tenant reimbursements of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period the expenses are incurred and presented gross if the Company is the primary obligor and, with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. In instances where the operating lease agreement has an early termination option, the termination penalty is based on a predetermined termination fee or based on the unamortized tenant improvements and leasing commissions. The Company evaluates the collectability of rents and other receivables on a regular basis based on factors including, among others, payment history, credit rating, the asset type, and current economic conditions. If the Company’s evaluation of these factors indicates it may not recover the full value of the receivable, it provides an allowance against the portion of the receivable that it estimates may not be recovered. This analysis requires the Company to determine whether there are factors indicating a receivable may not be fully collectible and to estimate the amount of the receivable that may not be collected. |
Gain or Loss on Sale of Real Estate Property | Gain or Loss on Sale of Real Estate Property The Company recognizes gain or loss on sale of real estate property when the Company has executed a contract for sale of the property, transferred controlling financial interest in the property to the buyer and determined that it is probable that the Company will collect substantially all of the consideration for the property. The Company's real estate property sale transactions for the six months ended June 30, 2021 met these criteria at closing. There were no sales transactions for the three months ended June 30, 2021. When properties are sold, operating results of the properties remain in continuing operations, and any associated gain or loss from the disposition is included in gain or loss on sale of real estate investments in the Company’s accompanying unaudited condensed consolidated statements of operations. | Gain or Loss on Sale of Real Estate Property The Company recognizes gain or loss on sale of real estate property when the Company has executed a contract for sale of the property, transferred controlling financial interest in the property to the buyer and determined that it is probable that the Company will collect substantially all of the consideration for the property. The Company's real estate property sale transactions for the year ended December 31, 2020 met these criteria at closing. Operating results of the property that is sold remains in continuing operations, and any associated gain or loss from the disposition is included in gain or loss on sale of real estate investments in the Company’s accompanying consolidated statements of operations. |
Bad Debts and Allowances for Tenant and Deferred Rent Receivables and Leasing Costs | Bad Debts and Allowances for Tenant and Deferred Rent Receivables The Company's determination of the adequacy of its allowances for tenant receivables includes a binary assessment of whether or not the amounts due under a tenant’s lease agreement are probable of collection. For such amounts that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the lease term. For such amounts that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. In addition, for tenant and deferred rent receivables deemed probable of collection, the Company also may record an allowance under other authoritative GAAP depending upon the Company's evaluation of the individual receivables, specific credit enhancements, current economic conditions, and other relevant factors. Such allowances are recorded as increases or decreases through rental income in the Company's unaudited condensed consolidated statements of operations. With respect to tenants in bankruptcy, management makes 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 allowance for the tenant’s receivable balance and generally will not recognize subsequent rental income until cash is received or until the tenant is no longer in bankruptcy and has the ability to make rental payments. Leasing Costs Internal leasing costs and third-party legal fees and leasing commissions are charged to expense as incurred. These expenses are included in legal leasing costs under property expenses in the Company's unaudited condensed consolidated statements of operations. | Leasing Costs Upon adoption of Topic 842, the Company elected to apply the package of practical expedients provided and did not reassess the following as of January 1, 2019: (1) whether any expired or existing contracts are leases or contain leases; (2) the lease classification for any expired or existing leases; and (3) initial direct costs for any existing leases. Under Topic 842, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, beginning January 1, 2019, the Company no longer capitalizes internal leasing costs and third-party legal leasing costs and instead charges these costs to expense as incurred. These expenses are included in legal leasing costs under property expenses in the Company's consolidated statements of operations. The election of the package of practical expedients described above permits the Company to continue to account for its leases that commenced before January 1, 2019 under the previously existing lease accounting guidance for the remainder of their lease terms, and to apply the new lease accounting guidance to leases entered into or acquired commencing or modified after January 1, 2019. |
Impairment of Investment in Real Estate Properties | Impairment of Investment in Real Estate Properties The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of real estate assets may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of real estate assets may not be recoverable, management assesses whether the carrying value of the assets will be recovered through the future undiscounted operating cash flows expected from the use of and eventual disposition of the property. If, based on the analysis, the Company does not believe that it will be able to recover the carrying value of the asset, the Company records an impairment charge to the extent the carrying value exceeds the estimated fair value of the asset. As more fully discussed in Note 3, the Company recorded impairment charges of $349,457 and $9,506,525 related to one and four of its real estate properties, respectively, during the three and six months ended June 30, 2020, respectively. The Company did not incur any impairment charges for its real estate properties during the three and six months ended June 30, 2021. However, the Company recognized a reversal of a previously recognized impairment charge of $ 400,999 | Impairment of Investment in Real Estate Properties The Company regularly monitors events and changes in circumstances that could indicate that the carrying amounts of real estate assets may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of real estate assets may not be recoverable, management assesses whether the carrying value of the assets will be recovered through the future undiscounted operating cash flows expected from the use of and eventual disposition of the property. If, based on the analysis, the Company does not believe that it will be able to recover the carrying value of the asset, the Company records an impairment charge to the extent the carrying value exceeds the estimated fair value of the asset. As more fully discussed in Note 4 |
Other Comprehensive Loss | Other Comprehensive Loss For all periods presented, other comprehensive loss is the same as net loss. | |
Per Share Data | Per Share Data The Company reports a dual presentation of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted EPS uses the treasury stock method or the if-converted method, where applicable, to compute for the potential dilution that would occur if dilutive securities or commitments to issue common stock were exercised. Diluted EPS is the same as Basic EPS for the three and six months ended June 30, 2021 and 2020 as the Company had a net loss for all reported periods. As of June 30, 2021, there were 657,949.5 Class M OP Units, 56,029 Class P OP Units and 358,670 units of Class R limited partnership interest (“Class R OP Units”), net of forfeiture of 1,330 units (adjusted for the 1: 3 1.6667 1 1 The Company has presented the basic and diluted net loss per share amounts on the accompanying unaudited condensed consolidated statements of operations for Class C and Class S share classes as a combined common share class. Application of the two-class method for allocating net loss in accordance with the provisions of ASC 260, Earnings per Share, would have resulted in a net loss of $(0.13) and $(0.28) per share of Class C common stock for the three months ended June 30, 2021 and 2020, respectively, and a net loss of $(0.13) and $(0.28) per share of Class S common stock for the three months ended June 30, 2021 and 2020, respectively. The two-class method would have resulted in a net loss per share of $(0.25) and $(6.39) of Class C common stock for the six months ended June 30, 2021 and 2020, respectively, and $(0.25) and $(6.39) of Class S common stock for the six months ended June 30, 2021 and 2020, respectively. Any difference in net loss per share if allocated under this method primarily reflects the lower effective distributions per share for Class S stockholders as a result of the payment of the deferred commission to the Class S distributor of these shares, and also reflects the impact of the timing of the declaration of the distributions relative to the time the shares were outstanding. | Per Share Data The Company reports a dual presentation of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted EPS uses the treasury stock method or the if-converted method, where applicable, to compute for the potential dilution that would occur if dilutive securities or commitments to issue common stock were exercised. Diluted EPS is the same as Basic EPS for the years ended December 31, 2020 and 2019 as the Company had a net loss for both years. As of both December 31, 2020 and 2019, there were 657,949.5 Class M OP Units and 56,029 Class P OP Units, respectively, that were convertible to Class C OP Units (defined below) at a conversion ratio of 1.6667 3 Note 3 1 The Company has presented the basic and diluted net loss per share amounts on the accompanying consolidated statements of operations for Class C and Class S share classes as a combined common share class. Application of the two-class method for allocating net loss in accordance with the provisions of ASC 260, Earnings per Share Distributions declared per share of Class C common stock were $ 1.46 2.11 3 1.46 2.11 3 |
Fair Value Disclosures | Fair Value Disclosures Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an existing price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value for certain financial instruments is derived using valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value: Cash and cash equivalents, restricted cash, deposit for investment in special purpose acquisition company, receivable from sale of real estate property, tenant receivables, prepaid expenses and other assets and accounts payable, accrued and other liabilities: These balances approximate their fair values due to the short maturities of these items. Derivative Instruments: The Company’s derivative instruments are presented at fair value in the accompanying unaudited condensed consolidated balance sheets. The valuation of these instruments is determined using a proprietary model that utilizes observable inputs. As such, the Company classifies these inputs as Level 2 inputs. The proprietary model uses the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and volatility. The fair values of interest rate swaps are estimated using the market standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit risks to the contracts, are incorporated in the fair values to account for potential nonperformance risk. Goodwill and Intangible Assets: The fair value measurements of goodwill and intangible assets are considered Level 3 nonrecurring fair value measurements. For goodwill, fair value measurement involves the determination of fair value of a reporting unit. The Company uses a Monte Carlo simulation model to estimate future performance, generating the fair value of the reporting unit's business. For intangible assets, fair value measurements include assumptions with inherent uncertainty, including projected offerings volumes and related projected revenues and long-term growth rates, among others. The carrying value of intangible assets is at risk of impairment if future projected offerings proceeds, revenues or long-term growth rates are lower than those currently projected. Credit facilities and economic relief note payable: The fair values of the Company’s credit facilities and economic relief note payable approximate the carrying values of the credit facility and economic relief note payable as their interest rates and other terms are comparable to those available in the market place for a similar credit facility and short-term note, respectively. Mortgage notes payable: The fair value of the Company’s mortgage notes payable is estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. 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 or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs. | Fair Value Measurements and Disclosures Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value for certain financial instruments is derived using a combination of market quotes, pricing models, and other valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value: Cash and cash equivalents; restricted cash; tenant receivables; prepaid expenses and other assets; accounts payable, accrued and other liabilities; and due to affiliates Derivative instruments Goodwill and Intangible Assets Unsecured credit facility Mortgage notes payable Related party transactions Note 9 |
Restricted Cash | Restricted Cash Restricted cash is comprised of funds which are restricted for use as required by certain lenders in conjunction with an acquisition or debt financing or modification and for on-site and tenant improvements or property taxes. Restricted cash as of June 30, 2021 and December 31, 2020 amounted to $2,508,471 and $129,118, respectively, for the properties discussed below and other lender reserves. Under the terms of the Company’s June 2021 refinancing of mortgages on its properties leased to Northrop Grumman and L3Harris with Banc of California as described in Note 7, the Company established restricted cash accounts at Banc of California with $1,400,000 and $1,000,000 held for the Northrop Grumman and L3Harris properties, respectively, to fund building improvements, tenant improvements and leasing commissions. Pursuant to lease agreements, the Company had an obligation to pay for tenant improvements as of June 30, 2021 and December 31, 2020 of $189,136 and $60,598, respectively for tenant improvements to be incurred by tenants for which funds restricted by the lender were available. As of June 30, 2021 and December 31, 2020, the Company's restricted cash held to fund other improvements and leasing commissions totaled $2,210,864 and $32,086, respectively. | Restricted Cash Restricted cash is comprised of funds which are restricted for use as required by certain lenders in conjunction with an acquisition or debt financing and for on-site and tenant improvements or property taxes. Restricted cash as of December 31, 2020 and 2019 amounted to $129,118 and $113,362, respectively. Pursuant to lease agreements, the Company has obligations to pay for $60,598 and $98,329 in site and tenant improvements to be incurred by tenants as of December 31, 2020 and 2019, respectively, including a 72.7% share of the tenant improvements for the Santa Clara property. At December 31, 2020 and 2019, the Company’s restricted cash held to fund these improvements totaled $92,684 and $92,684, respectively. As of December 31, 2020 and 2019, the Company also held restricted cash of $36,434 and $20,678 to fund an impounded property tax. |
Real Estate Investments Held for Sale | Real Estate Investments Held for Sale The Company generally considers a real estate investment to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate investment held for sale, net” and “assets related to real estate investment held for sale,” respectively, in the accompanying unaudited condensed consolidated balance sheets. Mortgage notes payable and other liabilities related to real estate investments held for sale are classified as “mortgage notes payable related to real estate investments held for sale, net” and “liabilities related to real estate investments held for sale,” respectively, in the accompanying unaudited condensed consolidated balance sheets. Real estate investments classified as held for sale are no longer depreciated and are reported at the lower of their carrying value or their estimated fair value less estimated costs to sell. Operating results of properties that were classified as held for sale in the ordinary course of business are included in continuing operations in the Company’s accompanying unaudited condensed consolidated statements of operations. | Real Estate Investments Held for Sale The Company considers a real estate investment to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate investment held for sale, net” and “assets related to real estate investment held for sale,” respectively, in the accompanying consolidated balance sheets. Mortgage notes payable and other liabilities related to real estate investments held for sale are classified as “mortgage notes payable related to real estate investments held for sale, net” and “liabilities related to real estate investments held for sale,” respectively, in the accompanying consolidated balance sheets. Real estate investments classified as held for sale are no longer depreciated and are reported at the lower of their carrying value or their estimated fair value less estimated costs to sell. Operating results of properties that were classified as held for sale in the ordinary course of business are included in continuing operations in the Company’s accompanying consolidated statements of operations. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. The Company evaluates goodwill and other intangible assets for possible impairment in accordance with ASC 350, Intangibles–Goodwill and Other, on an annual basis, or more frequently when events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit has declined below its carrying value. If the carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized. In assessing goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macro-economic, industry-specific and company-specific factors. These factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of such reporting unit is less than its carrying amount, then a quantitative analysis is unnecessary. However, if the Company concludes otherwise, or if it elects to bypass the qualitative analysis, then it is required to perform a quantitative analysis that compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, a goodwill impairment loss is recognized for the lesser of: (a) the amount that the carrying amount of a reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to that reporting unit. Intangible assets consist of purchased customer-related intangible assets, marketing-related intangible assets, developed or acquired technology and other intangible assets. Intangible assets are amortized over their estimated useful lives using the straight-line method ranging from three years to five years. No significant residual value is estimated for intangible assets. An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. The Company evaluates long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. | Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. The Company evaluates goodwill and other intangible assets for possible impairment in accordance with ASC 350, Intangibles–Goodwill and Other In assessing goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macro-economic, industry-specific and company-specific factors. These factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of such reporting unit is less than its carrying amount, then a quantitative analysis is unnecessary. However, if the Company concludes otherwise, or if it elects to bypass the qualitative analysis, then it is required to perform a quantitative analysis that compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, a goodwill impairment loss is recognized for the lesser of: (a) the amount that the carrying amount of a reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to that reporting unit. Intangible assets consist of purchased customer-related intangible assets, marketing related intangible assets, developed or acquired technology and other intangible assets. Intangible assets are amortized over their estimated useful lives using the straight-line method ranging from three years to five years. No significant residual value is estimated for intangible assets. An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. The Company evaluates long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. |
Restricted Stock Units and Restricted Stock Unit Awards | Restricted Stock and Restricted Stock Unit Awards The fair values of the Operating Partnership's units or restricted stock unit awards issued or granted by the Company are based on an estimated value per share of the Company’s common stock on the date of issuance or grant, adjusted for an illiquidity discount due to the illiquid nature of the underlying equity. Operating Partnership units issued as purchase consideration in connection with the Self-Management Transaction discussed in Note 11 are recorded in equity under noncontrolling interests in the Operating Partnership in the Company's unaudited condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020 and unaudited condensed consolidated statements of equity for the three and six months ended June 30, 2021 and 2020. For units granted to employees of the Company that are not included in the purchase consideration, the fair value of the award is amortized using the straight-line method over the requisite service period of the award, which is generally the vesting period. We have elected to record forfeitures as they occur. The Company determines the accounting classification of equity instruments (e.g. restricted stock units) that are issued as purchase consideration or part of the purchase consideration in a business combination, as either liability or equity, by first assessing whether the equity instruments meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity (“ASC 480-10”), and then in accordance with ASC 815-40, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock (“ASC 815-40”). Under ASC 480-10, equity instruments are classified as liabilities if the equity instruments are mandatorily redeemable, obligate the issuer to settle the equity instruments or the underlying shares by paying cash or other assets, or must or may require an unconditional obligation that must be settled by issuing a variable number of shares. If equity instruments do not meet liability classification under ASC 480-10, the Company assesses the requirements under ASC 815-40, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the equity instruments do not require liability classification under ASC 815-40, in order to conclude equity classification, the Company assesses whether the equity instruments are indexed to its common stock and whether the equity instruments are classified as equity under ASC 815-40 or other applicable GAAP guidance. After all relevant assessments are made, the Company concludes whether the equity instruments are classified as liability or equity. Liability classified equity instruments are required to be accounted for at fair value both on the date of issuance and on subsequent accounting period ending dates, with all changes in fair value after the issuance date recorded in the statements of operations as a gain or loss. Equity classified equity instruments are accounted for at fair value on the issuance date with no changes in fair value recognized after the issuance date. | Restricted Stock Units and Restricted Stock Unit Awards The fair values of the Operating Partnership's units or restricted stock unit awards issued or granted by the Company are based on the most recent NAV per share of the Company’s common stock on the date of issuance or grant. Operating Partnership units issued as purchase consideration in connection with the Self-Management Transaction discussed in Note 3 Note 3 The Company determines the accounting classification of equity instruments (e.g., restricted stock units) that are issued as purchase consideration or part of the purchase consideration in a business combination, as either liability or equity, by first assessing whether the equity instruments meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock If equity instruments do not meet liability classification under ASC 480-10, the Company assesses the requirements under ASC 815-40, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the equity instruments do not require liability classification under ASC 815-40, in order to conclude equity classification, the Company assesses whether the equity instruments are indexed to its common stock and whether the equity instruments are classified as equity under ASC 815-40 or other applicable GAAP guidance. After all relevant assessments are made, the Company concludes whether the equity instruments are classified as liability or equity. Liability classified equity instruments are required to be accounted for at fair value both on the date of issuance and on subsequent accounting period ending dates, with all changes in fair value after the issuance date recorded in the statements of operations as a gain or loss. Equity classified equity instruments are accounted for at fair value on the issuance date with no changes in fair value recognized after the issuance date. |
Reclassifications | Reclassifications Certain prior year balance sheet accounts have been reclassified to conform with the current year presentation. The reclassification did not affect the balances in the prior year statement of operations. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Standards Recently Issued and Not Yet Adopted 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 eases the potential burden in accounting for recognizing the effects of reference rate reform on financial reporting. Such challenges include the accounting and operational implications for contract modifications and hedge accounting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to loan and lease agreements, contracts, hedging relationships, and other transactions affected by reference rate reform. These provisions apply to contract modifications that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discounted because of reference rate reform. Qualifying modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate, and the modification would be considered “minor” so that any existing unamortized deferred loan origination fees and costs would carry forward and continue to be amortized. Qualifying modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, with adoption permitted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments must be applied prospectively for all eligible contract modifications. The Company is currently evaluating the effect that ASU 2020-04 will have on the Company’s consolidated financial statements. | Recent Accounting Pronouncements New Accounting Standards Issued and Adopted 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 In April 2020, the FASB issued a FASB Staff Q&A related to Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic Because of the unprecedented and global nature of the COVID-19 pandemic, the FASB staff is aware that it may be exceedingly challenging for entities to determine whether existing contracts provide enforceable rights and obligations for lease concessions and whether those concessions are consistent with the terms of the contract or are modifications to the contract. As such, the FASB staff believes that it would be acceptable for entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under Topic 842, as though enforceable rights and obligations for those concessions existed (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). Consequently, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in Topic 842 to those contracts. 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. For example, this election is available for concessions that result in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. The FASB staff expects that reasonable judgment will be exercised in making those determinations. Some concessions will provide a deferral of payments with no substantive changes to the consideration in the original contract. A deferral affects the timing, but the amount of the consideration is substantially the same as that required by the original contract. The FASB staff expects that there will be multiple ways to account for those deferrals, none of which the FASB staff believes are more preferable than the others. Two of those methods are: (1) account for the concessions as if no changes to the lease contract were made; under that accounting, a lessor would increase its lease receivable, and a lessee would increase its accounts payable as receivables/payments accrue; in its income statement, a lessor would continue to recognize income, and a lessee would continue to recognize expense during the deferral period; and (2) account for the deferred payments as variable lease payments. The Company has elected to utilize the method wherein the concessions result in additional lease receivable during the deferral period as available under the Topic 842 Q&A for lease concessions related to the effects of the COVID-19 pandemic. The Company's lease concessions related to the effects of the COVID-19 pandemic resulted in additional receivables during the deferral periods which have all been collected as of December 31, 2020. Due to the continuing nature of the COVID-19 pandemic, there may be subsequent impacts from future tenant requests for lease concessions or deferrals for future periods. The Company maintains an inventory of tenants which have or are expected to request lease concessions. Future lease concessions may have an impact on the Company’s business, financial condition and results of operations, but the ultimate impact will largely depend on future developments with respect to the continued spread and treatment of COVID-19, which the Company cannot accurately predict at this time. New Accounting Standards Issued and Not Yet Adopted 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 Qualifying modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate, and the modification would be considered “minor” so that any existing unamortized deferred loan origination fees and costs would carry forward and continue to be amortized. Qualifying modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, with adoption permitted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments must be applied prospectively for all eligible contract modifications. The Company is currently evaluating the effect that ASU 2020-04 will have on the Company’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACOUNT_5
SUMMARY OF SIGNIFICANT ACOUNTING POLICIES (FY) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Dividends Declared | The following presents the U.S. federal income tax characterization of the distributions paid: Years Ended December 31 2020 2019 Ordinary income $ — $ 0.3825 Non-taxable distribution 1.4600 1.7280 Total $ 1.4600 $ 2.1105 |
MERGER AND SELF-MANAGEMENT TR_2
MERGER AND SELF-MANAGEMENT TRANSACTION (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Business Combinations [Abstract] | ||
Purchase Price Allocation | The following table summarizes the allocation of the purchase price to the fair values assigned to the REIT I assets acquired and liabilities assumed as of December 31, 2019, the Merger closing date. These fair values are based on internal Company and independent external third-party valuations: Fair Values Assigned December 31, 2019 Assets: Real estate property, including above/below lease intangibles $ 151,099,097 Cash and cash equivalents 1,612,331 Tenant receivable 310,169 Prepaid expenses and other assets 51,924 Liabilities: Mortgage notes payable, net (62,985,425 ) Accounts payable and other liabilities (2,243,156 ) Net 87,844,940 Less: Cancellation of investment in REIT I (Note 5) (3,091,489 ) Capitalized transaction-related costs (3,044,480 ) Net Assets Acquired $ 81,708,971 The following table summarizes the allocation of the purchase price to the fair values assigned to the BrixInvest assets acquired and liabilities assumed as of December 31, 2019, the closing date of the Self-Management Transaction. These fair values are based on internal Company and independent external third-party valuations: Fair Values Assigned December 31, 2019 Assets: Cash and cash equivalents $ (204,176 ) Prepaid expenses and other assets (305,212 ) Operating lease right-of-use asset (2,386,877 ) Intangible assets (7,700,000 ) Liabilities: Short-term notes payable 4,800,000 Due to affiliates 630,820 Bank line of credit 800,000 Accounts payable and other liabilities 2,070,968 Operating lease liability 2,386,877 Net 92,400 Add: Cancellation of investment in the Company (107,400 ) Less: Contribution of Class M OP Units and Class P OP Units 50,603,000 Goodwill $ (50,588,000 ) | |
Class M OP Units Conversion | In the event that the Class M OP Units are converted into Class C OP Units prior to December 31, 2023, such Class M OP Units shall be exchanged at the rate indicated below: Date of Exchange Early Conversion Rate From December 31, 2020 to December 30, 2021 50% of the Class M conversion ratio From December 31, 2021 to December 30, 2022 60% of the Class M conversion ratio From December 31, 2022 to December 30, 2023 70% of the Class M conversion ratio The Class M OP Units are eligible for an increase in the conversion ratio (conversion ratio enhancement) if the Company achieves both of the targets for AUM and AFFO in a given year as set forth below and as adjusted for the 1:3 reverse stock split: Hurdles AUM AFFO Class M Initial Conversion Ratio 1: 1.6667 Fiscal Year 2021 $ 0.860 $ 1.77 1: 1.9167 Fiscal Year 2022 $ 1.175 $ 1.95 1: 2.5000 Fiscal Year 2023 $ 1.551 $ 2.10 1: 3.0000 | In the event that the Class M OP Units are converted into Class C OP Units prior to December 31, 2023, such Class M OP Units shall be exchanged at the rate indicated below: Date of Exchange Early Conversion Rate From December 31, 2020 to December 30, 2021 50% of the Class M conversion ratio From December 31, 2021 to December 30, 2022 60% of the Class M conversion ratio From December 31, 2022 to December 30, 2023 70% of the Class M conversion ratio The Class M OP Units are eligible for an increase in the conversion ratio (conversion ratio enhancement) if the Company achieves both of the targets for assets under management (“AUM”) and adjusted funds from operations (“AFFO”) in a given year as set forth below and as adjusted for the 1: 3 Hurdles AUM AFFO Class M Initial Conversion Ratio 1: 1.6667 Fiscal Year 2021 $ 0.860 $ 1.77 1: 1.9167 Fiscal Year 2022 $ 1.175 $ 1.95 1: 2.5000 Fiscal Year 2023 $ 1.551 $ 2.10 1: 3.0000 |
Net Carrying Amount of Goodwill | The changes in carrying value of goodwill as of June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 December 31, 2020 Beginning balance $ 17,320,857 $ 50,588,000 Impairment of goodwill for the three and the 12 months period ended, respectively — (33,267,143 ) Ending balance $ 17,320,857 $ 17,320,857 | The net carrying amount of goodwill as of December 31, 2020 and 2019 is as follows: December 31, 2020 2019 Goodwill $ 17,320,857 $ 50,588,000 |
Intangible Assets Acquired | Intangible assets, net as of December 31, 2020 and 2019 and related useful lives were as follows: Weighted- December 31, Intangible Assets Average Useful Life 2020 2019 Investor list, net 5.0 years $ 3,494,740 $ 4,800,000 Web services technology, domains and licenses 3.0 years 3,466,102 2,900,000 6,960,842 7,700,000 Accumulated amortization (1,833,054 ) — Net $ 5,127,788 $ 7,700,000 |
REAL ESTATE INVESTMENTS (FY) (T
REAL ESTATE INVESTMENTS (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Real Estate [Abstract] | ||
Schedule of Real Estate Properties | The following table provides summary information regarding the Company’s operating properties as of June 30, 2021: Property Location Acquisition Date Property Type Land, Buildings and Improvements Tenant Origination and Absorption Costs Accumulated Depreciation and Amortization Total Investment in Real Estate Property, Net Accredo Health Orlando, FL 6/15/2016 Office $ 9,855,847 $ 1,269,350 $ (2,444,918 ) $ 8,680,279 Dollar General Litchfield, ME 11/4/2016 Retail 1,281,812 116,302 (186,127 ) 1,211,987 Dollar General Wilton, ME 11/4/2016 Retail 1,543,776 140,653 (238,203 ) 1,446,226 Dollar General Thompsontown, PA 11/4/2016 Retail 1,199,860 106,730 (178,835 ) 1,127,755 Dollar General Mt. Gilead, OH 11/4/2016 Retail 1,174,188 111,847 (171,462 ) 1,114,573 Dollar General Lakeside, OH 11/4/2016 Retail 1,112,872 100,857 (175,973 ) 1,037,756 Dollar General Castalia, OH 11/4/2016 Retail 1,102,086 86,408 (170,976 ) 1,017,518 Northrop Grumman Melbourne, FL 3/7/2017 Office 12,382,991 1,469,737 (3,363,521 ) 10,489,207 exp US Services Maitland, FL 3/27/2017 Office 6,056,668 388,248 (945,261 ) 5,499,655 Harley (1) Bedford, TX 4/13/2017 Retail 12,947,054 — (1,196,054 ) 11,751,000 Wyndham Summerlin, NV 6/22/2017 Office 10,406,483 669,232 (1,347,468 ) 9,728,247 Williams Sonoma Summerlin, NV 6/22/2017 Office 8,079,612 550,486 (1,214,232 ) 7,415,866 Omnicare Richmond, VA 7/20/2017 Industrial 7,262,747 281,442 (954,774 ) 6,589,415 EMCOR Cincinnati, OH 8/29/2017 Office 5,960,610 463,488 (693,863 ) 5,730,235 Husqvarna Charlotte, NC 11/30/2017 Industrial 11,840,200 1,013,948 (1,292,198 ) 11,561,950 AvAir Chandler, AZ 12/28/2017 Industrial 27,357,899 — (2,458,171 ) 24,899,728 3 M DeKalb, IL 3/29/2018 Industrial 14,762,819 2,356,361 (4,099,258 ) 13,019,922 Cummins Nashville, TN 4/4/2018 Office 14,465,491 1,536,998 (2,549,219 ) 13,453,270 Northrop Grumman Parcel Melbourne, FL 6/21/2018 Land 329,410 — — 329,410 Texas Health Dallas, TX 9/13/2018 Office 6,976,703 713,221 (829,997 ) 6,859,927 Bon Secours Richmond, VA 10/31/2018 Office 10,388,751 800,356 (1,204,744 ) 9,984,363 Costco Issaquah, WA 12/20/2018 Office 27,330,797 2,765,136 (3,305,667 ) 26,790,266 Taylor Fresh Foods Yuma, AZ 10/24/2019 Industrial 34,194,369 2,894,017 (2,257,859 ) 34,830,527 Levins Sacramento, CA 12/31/2019 Industrial 4,429,390 221,927 (330,913 ) 4,320,404 Dollar General Bakersfield, CA 12/31/2019 Retail 4,899,714 261,630 (220,698 ) 4,940,646 Labcorp San Carlos, CA 12/31/2019 Industrial 9,672,174 408,225 (306,481 ) 9,773,918 GSA (MSHA) Vacaville, CA 12/31/2019 Office 3,112,076 243,307 (207,772 ) 3,147,611 PreK Education San Antonio, TX 12/31/2019 Retail 12,447,287 555,767 (899,142 ) 12,103,912 Dollar Tree Morrow, GA 12/31/2019 Retail 1,320,367 73,298 (106,366 ) 1,287,299 Solar Turbines San Diego, CA 12/31/2019 Office 7,133,241 284,026 (507,486 ) 6,909,781 Wood Group San Diego, CA 12/31/2019 Industrial 9,731,220 539,633 (742,040 ) 9,528,813 ITW Rippey El Dorado, CA 12/31/2019 Industrial 7,071,143 304,387 (456,010 ) 6,919,520 Dollar General Big Spring, TX 12/31/2019 Retail 1,281,683 76,351 (76,453 ) 1,281,581 Gap Rocklin, CA 12/31/2019 Office 8,378,276 360,377 (718,960 ) 8,019,693 L3Harris San Diego, CA 12/31/2019 Industrial 11,631,857 454,035 (706,233 ) 11,379,659 Sutter Health Rancho Cordova, CA 12/31/2019 Office 29,555,055 1,616,610 (1,620,523 ) 29,551,142 Walgreens Santa Maria, CA 12/31/2019 Retail 5,223,442 335,945 (199,441 ) 5,359,946 $ 343,899,970 $ 23,570,335 $ (38,377,298 ) $ 329,093,007 (1) Reclassified to real estate investment held for investment and use during the second quarter of 2021 from real estate held for sale beginning September 30, 2020 (see detailed discussion below). The details of the Company's real estate impairment charges for the three and six months ended June 30, 2020 were as follows: Property Location Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Rite Aid Lake Elsinore, CA $ 349,457 $ 349,457 Dana Cedar Park, TX — 2,184,395 24 Hour Fitness Las Vegas, NV — 5,664,517 Dinan Cars Morgan Hill, CA — 1,308,156 Total $ 349,457 $ 9,506,525 | The following table provides summary information regarding the Company’s real estate portfolio as of December 31, 2020: Property Location Acquisition Date Property Type Land, Buildings and Improvements Tenant Origination and Absorption Costs Accumulated Depreciation and Amortization Total Investment in Real Estate Property, Net Accredo Health Orlando, FL 6/15/2016 Office $ 9,855,847 $ 1,269,351 $ (2,221,380 ) $ 8,903,818 Dollar General Litchfield, ME 11/4/2016 Retail 1,281,812 116,302 (166,006 ) 1,232,108 Dollar General Wilton, ME 11/4/2016 Retail 1,543,776 140,653 (212,451 ) 1,471,978 Dollar General Thompsontown, PA 11/4/2016 Retail 1,199,860 106,730 (159,501 ) 1,147,089 Dollar General Mt. Gilead, OH 11/4/2016 Retail 1,174,188 111,847 (152,925 ) 1,133,110 Dollar General Lakeside, OH 11/4/2016 Retail 1,112,872 100,857 (156,949 ) 1,056,780 Dollar General Castalia, OH 11/4/2016 Retail 1,102,086 86,408 (152,492 ) 1,036,002 Dana Cedar Park, TX 12/27/2016 Industrial 6,802,876 531,439 (1,835,800 ) 5,498,515 Northrop Grumman Melbourne, FL 3/7/2017 Office 12,382,991 1,341,199 (2,968,985 ) 10,755,205 exp US Services Maitland, FL 3/27/2017 Office 6,056,668 388,248 (833,278 ) 5,611,638 Wyndham Summerlin, NV 6/22/2017 Office 10,406,483 669,232 (1,170,222 ) 9,905,493 Williams Sonoma Summerlin, NV 6/22/2017 Office 8,079,612 550,486 (1,058,455 ) 7,571,643 Omnicare Richmond, VA 7/20/2017 Industrial 7,262,747 281,442 (832,474 ) 6,711,715 EMCOR Cincinnati, OH 8/29/2017 Office 5,960,610 463,488 (604,163 ) 5,819,935 Husqvarna Charlotte, NC 11/30/2017 Industrial 11,840,200 1,013,948 (1,113,651 ) 11,740,497 AvAir Chandler, AZ 12/28/2017 Industrial 27,357,900 — (2,111,134 ) 25,246,766 3M DeKalb, IL 3/29/2018 Industrial 14,762,819 2,356,361 (3,476,588 ) 13,642,592 Cummins Nashville, TN 4/4/2018 Office 14,465,491 1,536,998 (2,151,938 ) 13,850,551 Northrop Grumman Parcel Melbourne, FL 6/21/2018 Land 329,410 — — 329,410 Texas Health Dallas, TX 9/13/2018 Office 6,976,703 713,221 (681,341 ) 7,008,583 Bon Secours Richmond, VA 10/31/2018 Office 10,388,751 800,356 (978,335 ) 10,210,772 Costco Issaquah, WA 12/20/2018 Office 27,330,797 2,765,136 (2,654,329 ) 27,441,604 Taylor Fresh Foods Yuma, AZ 10/24/2019 Industrial 34,194,369 2,894,017 (1,597,022 ) 35,491,364 Levins Sacramento, CA 12/31/2019 Industrial 4,429,390 221,927 (220,609 ) 4,430,708 Dollar General Bakersfield, CA 12/31/2019 Retail 4,899,714 261,630 (147,132 ) 5,014,212 PMI Preclinical San Carlos, CA 12/31/2019 Industrial 9,672,174 408,225 (204,321 ) 9,876,078 GSA (MSHA) Vacaville, CA 12/31/2019 Office 3,112,076 243,307 (138,515 ) 3,216,868 PreK Education San Antonio, TX 12/31/2019 Retail 12,447,287 447,927 (599,428 ) 12,295,786 Dollar Tree Morrow, GA 12/31/2019 Retail 1,320,367 73,298 (70,911 ) 1,322,754 Solar Turbines San Diego, CA 12/31/2019 Office 7,133,241 284,026 (338,232 ) 7,079,035 Wood Group San Diego, CA 12/31/2019 Industrial 9,731,220 466,293 (565,017 ) 9,632,496 ITW Rippey El Dorado Hills, CA 12/31/2019 Industrial 7,071,143 304,387 (303,219 ) 7,072,311 Dollar General Big Spring, TX 12/31/2019 Retail 1,281,683 76,351 (50,969 ) 1,307,065 Gap Rocklin, CA 12/31/2019 Office 8,378,276 360,377 (479,306 ) 8,259,347 L-3 Communications Carlsbad, CA 12/31/2019 Industrial 11,631,857 454,035 (470,823 ) 11,615,069 Sutter Health Rancho Cordova, CA 12/31/2019 Office 29,555,055 1,616,610 (1,080,349 ) 30,091,316 Walgreens Santa Maria, CA 12/31/2019 Retail 5,223,442 335,945 (132,961 ) 5,426,426 $ 337,755,793 $ 23,792,057 $ (32,091,211 ) $ 329,456,639 The details of the Company's real estate impairment charges for the year ended December 31, 2020 were as follows: Property Location Year Ended December 31, 2020 Dana Cedar Park, TX $ 2,184,395 24 Hour Fitness Las Vegas, NV 5,664,517 Dinan Cars Morgan Hill, CA 1,308,156 Rite Aid Lake Elsinore, CA 349,457 Harley Davidson Bedford, TX 632,233 Chevron Gas Station San Jose, CA 128,867 $ 10,267,625 |
Property Acquisitions | During the year ended December 31, 2019, the Company acquired the following real estate properties: Property Land Buildings and Improvements Tenant Origination and Absorption Costs Above- Market Lease Intangibles Below-Market Lease Intangibles Total REIT I Property Portfolio: Chevron Gas Station, San Jose $ 3,787,021 $ 267,738 $ 145,577 $ 41,739 $ — $ 4,242,075 Levins 1,404,863 3,024,527 221,927 26,469 — 4,677,786 Chevron Gas Station, Roseville 2,636,663 1,011,908 136,415 24,432 — 3,809,418 Island Pacific Supermarket 676,981 1,883,330 197,495 — (76,351 ) 2,681,455 Dollar General, Bakersfield 1,099,458 3,800,256 261,630 — (41,739 ) 5,119,605 Rite Aid 3,939,724 2,902,365 420,441 186,297 — 7,448,827 PMI Preclinical 4,774,497 4,897,677 408,225 115,036 — 10,195,435 EcoThrift 2,300,717 3,249,509 273,846 — (388,882 ) 5,435,190 GSA (MSHA) 399,062 2,713,014 243,307 — (101,802 ) 3,253,581 PreK San Antonio 963,044 11,484,243 447,927 — (28,504 ) 12,866,710 Dollar Tree 159,829 1,160,538 73,298 10,180 — 1,403,845 Dinan Cars 2,453,420 3,799,237 — — — 6,252,657 Solar Turbines 2,483,960 4,649,281 284,026 — (108,928 ) 7,308,339 Wood Group 3,461,256 6,269,964 392,955 — — 10,124,175 ITW Rippey 787,945 6,283,198 304,387 — — 7,375,530 Dollar General, Big Spring 103,838 1,177,845 76,351 — (127,252 ) 1,230,782 Gap 2,076,754 6,301,522 360,377 — (68,207 ) 8,670,446 L-3 Communications 3,552,878 8,078,979 454,035 — (174,081 ) 11,911,811 Sutter Health 2,443,240 27,111,815 1,616,610 87,549 — 31,259,214 Walgreens 1,832,430 3,391,012 335,945 272,829 — 5,832,216 Total REIT I Property Portfolio 41,337,580 103,457,958 6,654,774 764,531 (1,115,746 ) 151,099,097 Taylor Fresh Foods 4,312,016 29,882,353 2,894,017 — (11,526,976 ) 25,561,410 $ 45,649,596 $ 133,340,311 $ 9,548,791 $ 764,531 $ (12,642,722 ) $ 176,660,507 | |
Property Purchase Price | Purchase price and other acquisition costs $ 176,660,507 Purchase deposit applied (2,000,000 ) Acquisition fees to affiliate related to Taylor Fresh Foods (Note 9) (741,000 ) Acquisition of real estate before financing $ 173,919,507 | |
Capitalized Acquisition Fees | Capitalized acquisition fee paid to the Former Advisor for a property acquired during the year ended December 31, 2019 is as follows: Property Amount Taylor Fresh Foods $ 741,000 | |
Lease Expiration Dates | The noncancellable lease terms of the properties acquired during the year ended December 31, 2019 were as follows: Property Lease Expiration Chevron Gas Station 5/27/2025 Levins 8/20/2023 Chevron Gas Station 9/30/2025 Island Pacific Supermarket 5/31/2025 Dollar General 7/31/2028 Rite Aid 2/25/2028 PMI Preclinical 10/31/2025 EcoThrift 2/28/2026 GSA (MSHA) 8/24/2026 PreK San Antonio 7/31/2021 Dollar Tree 7/31/2025 Dinan Cars 4/30/2023 Solar Turbines 2/28/2021 Amec Foster 7/31/2021 ITW Rippey 8/1/2022 Dollar General Big Spring 4/30/2030 Gap 2/28/2023 L-3 Communications 4/30/2022 Sutter Health 10/31/2025 Walgreens 2/28/2031 Taylor Fresh Foods 9/30/2033 | |
Dispositions and Real Estate Investments Held for Sale | There were no disposals of properties during the three months ended June 30, 2021 nor during the three and six months ended June 30, 2020. The Company sold the following properties during the first quarter of 2021: Property Location Disposition Date Property Type Rentable Square Feet Contract Sale Price Gain on Sale Chevron Gas Station Roseville, CA 1/7/2021 Retail 3,300 $ 4,050,000 $ 228,769 EcoThrift Sacramento, CA 1/29/2021 Retail 38,536 5,375,300 51,415 Chevron Gas Station San Jose, CA 2/12/2021 Retail 1,060 4,288,888 9,458 Total 42,896 $ 13,714,188 $ 289,642 The following table summarizes the major components of assets and liabilities related to real estate investments held for sale as of June 30, 2021 (Dana property) and December 31, 2020 (Harley Davidson, EcoThrift and two Chevron properties): June 30, 2021 December 31, 2020 Assets related to real estate investments held for sale: Land, buildings and improvements $ 6,802,876 $ 25,675,459 Tenant origination and absorption costs 531,439 554,788 Accumulated depreciation and amortization (1,958,569 ) (1,644,508 ) Real estate investments held for sale, net 5,375,746 24,585,739 Other assets, net 671,265 1,079,361 Total assets related to real estate investments held for sale: $ 6,047,011 $ 25,665,100 Liabilities related to real estate investments held for sale: Mortgage notes payable, net $ 4,381,426 $ 9,088,438 Other liabilities, net 227,433 801,337 Total liabilities related to real estate investments held for sale: $ 4,608,859 $ 9,889,775 The following table summarizes the major components of rental income, expenses and impairment related to real estate investments held for sale as of June 30, 2021 (the property leased to Dana) and 2020 (the property leased to Island Pacific Supermarket located in Elk Grove, CA, the property leased to Rite Aid located in Lake Elsinore, CA, the property leased to Walgreens located in Stockbridge, GA and the property previously leased to Dinan Cars located in Morgan Hill, CA), which were included in continuing operations for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total revenues $ 342,198 $ 312,060 $ 716,160 $ 1,480,909 Expenses: Interest expense 63,207 83,658 138,629 221,022 Depreciation and amortization 49,108 185,658 122,769 375,575 Other expenses 78,857 101,131 145,797 221,811 Impairment — 349,457 — 1,657,613 Total expenses 191,172 719,904 407,195 2,476,021 Net income (loss) $ 151,026 $ (407,844 ) $ 308,965 $ (995,112 ) | The Company sold the following properties during the year ended December 31, 2020: Property Location Disposition Date Property Type Rentable Square Feet Contract Sale Price Gain (Loss) on Sale Rite Aid Lake Elsinore, CA 8/3/2020 Retail 17,272 $ 7,250,000 $ (422 ) Walgreens Stockbridge, GA 8/27/2020 Retail 15,120 5,538,462 1,306,768 Island Pacific Supermarket Elk Grove, CA 9/16/2020 Retail 13,963 3,155,000 387,296 Dinan Cars Morgan Hill, CA 10/28/2020 Industrial 27,296 6,100,000 961,836 24 Hour Fitness Las Vegas, NV 12/16/2020 Retail 45,000 9,052,941 1,484,271 118,651 $ 31,096,403 $ 4,139,749 The following table summarizes the major components of assets and liabilities related to real estate investments held for sale as of December 31, 2020: December 31, 2020 Assets related to real estate investments held for sale: Land, buildings and improvements $ 25,675,459 Tenant origination and absorption costs 554,788 Accumulated depreciation and amortization (1,644,508 ) Real estate investments held for sale, net 24,585,739 Other assets, net 1,079,361 Total assets related to real estate investments held for sale: $ 25,665,100 Liabilities related to real estate investments held for sale: Mortgage notes payable, net $ 9,088,438 Other liabilities, net 801,337 Total liabilities related to real estate investments held for sale: $ 9,889,775 The following table summarizes the major components of rental income, expenses and impairment related to real estate investments held for sale as of December 31, 2020, which were included in continuing operations for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Total revenues $ 2,326,058 $ 1,325,265 Expenses: Interest expense 552,246 323,460 Depreciation and amortization 737,278 344,708 Other expenses 352,280 385,282 Impairment of real estate properties 761,100 — Total expenses 2,402,904 1,053,450 Net (loss) income $ (76,846 ) $ 271,815 |
Revenue Concentration | The Company’s revenue concentration based on tenants representing greater than 10% of total revenues for the year ended December 31, 2019 is as follows: 2019 Property and Location Revenue Percentage of Total Revenue AvAir, Chandler, AZ $ 2,670,159 10.9 % | |
Future Minimum Contractual Rent Payments Due under Noncancelable Operating Leases | As of June 30, 2021, the future minimum contractual rent payments due to the Company under the Company’s non-cancellable operating leases, including lease amendments executed through August 13, 2021 and excluding rents due related to the real estate investments held for sale, are as follows: July through December 2021 $ 13,219,545 2022 25,533,893 2023 22,070,671 2024 21,588,111 2025 18,369,437 2026 11,524,427 Thereafter 42,329,568 $ 154,635,652 | As of December 31, 2020, the future minimum contractual rent payments due under the Company’s noncancelable operating leases, including lease amendments executed subsequent to December 31, 2020 and excluding rents due related to real estate investments held for sale, are as follows: 2021 $ 26,761,843 2022 24,418,710 2023 20,157,378 2024 19,674,819 2025 16,456,145 Thereafter 43,827,967 $ 151,296,862 |
Finite-Lived Intangible Assets | The following table sets forth the Company's intangible assets, net as of June 30, 2021 and December 31, 2020 and their related useful lives: Intangible Assets Weighted- Average Useful Life June 30, 2021 December 31, 2020 Investor list, net 5.0 years $ 3,494,740 $ 3,494,740 Web services technology, domains and licenses 3.0 years 3,577,852 3,466,102 7,072,592 6,960,842 Accumulated amortization (2,758,793 ) (1,833,054 ) Net $ 4,313,799 $ 5,127,788 | As of December 31, 2020 and 2019, the Company’s intangible assets were as follows: December 31, 2020 December 31, 2019 Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles Tenant Origination and Absorption Above-Market Lease Intangibles Below-Market Lease Intangibles Cost $ 23,792,057 $ 1,128,549 $ (15,163,672 ) $ 27,266,610 $ 1,547,646 $ (15,713,975 ) Accumulated amortization (9,695,960 ) (307,707 ) 2,597,935 (6,005,248 ) (295,912 ) 1,122,616 Net amount $ 14,096,097 $ 820,842 $ (12,565,737 ) $ 21,261,362 $ 1,251,734 $ (14,591,359 ) |
Finite-Lived Intangible Assets, Future Amortization | As of June 30, 2021, the amortization of intangible assets for the nine months ending December 31, 2021 and for each year of the next five years and thereafter is expected to be as follows: Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles July through December 2021 $ 1,609,387 $ 64,909 $ (727,614 ) 2022 2,682,533 129,823 (1,217,029 ) 2023 1,805,532 127,174 (921,169 ) 2024 1,689,428 122,543 (917,750 ) 2025 1,311,545 115,996 (917,750 ) 2026 601,734 78,557 (912,347 ) Thereafter 2,659,530 116,927 (6,216,928 ) $ 12,359,689 $ 755,929 $ (11,830,587 ) Weighted-average remaining amortization period 7.1 6.8 11.9 | As of December 31, 2020, amortization of intangible assets for each year of the next five years and thereafter is expected to be as follows: Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles 2021 $ 3,801,383 $ 129,823 $ (1,462,730 ) 2022 2,628,700 129,823 (1,217,076 ) 2023 1,751,653 127,174 (921,169 ) 2024 1,625,159 122,543 (917,750 ) 2025 1,242,973 115,995 (917,750 ) Thereafter 3,046,229 195,484 (7,129,262 ) $ 14,096,097 $ 820,842 $ (12,565,737 ) Weighted-Average Remaining Amortization Period 7.1 years 7.2 years 12.2 years |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED ENTITY (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Equity Method Investments | The Company’s investment in unconsolidated entity as of June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 The TIC Interest $ 9,987,703 $ 10,002,368 | The Company’s investment in unconsolidated entity as of December 31, 2020 and 2019 is as follows: December 31, 2020 2019 The TIC Interest $ 10,002,368 $ 10,388,588 |
Entities Equity In Earnings | The Company’s income (loss) from investments in unconsolidated entities for the years ended December 31, 2020 and 2019 is as follows: Years Ended December 31, 2020 2019 The TIC Interest $ 296,780 $ 296,691 REIT I — (62,643 ) Total $ 296,780 $ 234,048 | |
Summarized Financial Information | The following is summarized financial information for the Santa Clara property as of and for the years ended December 31, 2020 and 2019: December 31, 2020 2019 Assets: Real estate investments, net $ 29,906,146 $ 30,858,240 Cash and cash equivalents 380,774 275,760 Other assets 164,684 228,770 Total assets $ 30,451,604 $ 31,362,770 Liabilities: Mortgage notes payable, net $ 13,489,126 $ 13,746,635 Below-market lease, net 2,806,973 2,953,360 Other liabilities 92,777 68,587 Total liabilities 16,388,876 16,768,582 Total equity 14,062,728 14,594,188 Total liabilities and equity $ 30,451,604 $ 31,362,770 Years Ended December 31, 2020 2019 Total revenue $ 2,694,874 $ 2,705,126 Expenses: Depreciation and amortization 999,929 993,564 Interest expense 565,778 574,086 Other expenses 721,279 731,044 Total expenses 2,286,986 2,298,694 Net income $ 407,888 $ 406,432 The following is REIT I's summarized results of operations for the year ended December 31, 2019: Year Ended December 31, 2019 Total revenue $ 13,132,226 Expenses: Depreciation and amortization 5,787,709 Interest expense 3,425,625 Other expenses 5,342,365 Total expenses 14,555,699 Other income: Gain on sale of real estate investment property, net (1,850,845 ) Loss on debt restructuring 1,964,618 Total other income 113,773 Net loss $ (1,309,700 ) |
CONSOLIDATED BALANCE SHEETS D_2
CONSOLIDATED BALANCE SHEETS DETAILS (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Payables and Accruals [Abstract] | ||
Supplemental Detail Disclosures for Consolidate Balance Sheet | Tenant receivables consisted of the following: June 30, 2021 December 31, 2020 Straight-line rent $ 5,163,964 $ 4,344,388 Tenant rent 384,661 204,775 Tenant reimbursements 1,607,198 2,116,627 Total $ 7,155,823 $ 6,665,790 | Tenant receivables consisted of the following: December 31, 2020 2019 Straight-line rent $ 4,344,388 $ 3,541,238 Tenant rent 204,775 420,959 Tenant reimbursements 1,979,963 1,854,883 Tenant other 136,664 407,684 Total $ 6,665,790 $ 6,224,764 Accounts payable, accrued and other liabilities were comprised of the following: December 31, 2020 2019 Accounts payable $ 1,136,954 $ 660,111 Accrued expenses (a) 3,068,714 5,773,214 Accrued dividends 706,106 962,615 Accrued interest payable 629,628 1,690,168 Unearned rent 2,033,065 1,963,896 Lease incentive obligation 5,157 505,157 Total $ 7,579,624 $ 11,555,161 (a) Includes accrued Merger expenses of $1,570,622 as of December 31, 2019. |
DEBT (FY) (Tables)
DEBT (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Summary of Company's Mortgage Notes | As of June 30, 2021 and December 31, 2020, the Company’s mortgage notes payable consisted of the following: Collateral 2021 Principal Amount 2020 Principal Amount Contractual Interest Rate (1) Effective Interest Rate (1) Loan Maturity Accredo property $ 8,538,000 $ 8,538,000 3.80 % 3.80 % 8/1/2025 Six Dollar General properties 3,711,118 3,747,520 4.69 % 4.69 % 4/1/2022 Dana property — 4,466,865 4.56 % 4.56 % 4/1/2023 Northrop Grumman property (8) 7,000,000 5,518,589 3.35 % 3.35 % 5/21/2031 exp US Services property 3,288,786 3,321,931 (4 ) 4.25 % 11/17/2024 Harley Davidson property (2) 6,558,170 — 4.25 % 4.25 % 9/1/2024 Wyndham property (3) 5,551,200 5,607,000 One-month LIBOR + 2.05% 4.34 % 6/5/2027 Williams Sonoma property (3) 4,392,000 4,438,200 One-month LIBOR + 2.05% 4.34 % 6/5/2022 Omnicare property 4,151,386 4,193,171 4.36 % 4.36 % 5/1/2026 EMCOR property 2,784,868 2,811,539 4.35 % 4.35 % 12/1/2024 Husqvarna property 6,379,182 6,379,182 (5 ) 4.60 % 2/20/2028 AvAir property 19,950,000 19,950,000 3.80 % 3.80 % 8/1/2025 3M property 8,091,800 8,166,000 One-month LIBOR + 2.25% 5.09 % 3/29/2023 Cummins property 8,256,600 8,332,200 One-month LIBOR + 2.25% 5.16 % 4/4/2023 Texas Health property 4,324,160 4,363,203 4.00 % 4.00 % 12/5/2024 Bon Secours property 5,142,425 5,180,552 5.41 % 5.41 % 9/15/2026 Costco property 18,850,000 18,850,000 4.85 % 4.85 % 1/1/2030 Taylor Fresh Foods 12,350,000 12,350,000 3.85 % 3.85 % 11/1/2029 Levins property (6) 2,687,293 2,032,332 3.75 % 3.75 % 2/16/2026 Dollar General Bakersfield property (6) 2,263,573 2,268,922 3.65 % 3.65 % 2/16/2028 Labcorp property (6) 5,374,587 4,020,418 3.75 % 3.75 % 2/16/2026 GSA (MSHA) property (6) 1,743,349 1,752,092 3.65 % 3.65 % 2/16/2026 PreK San Antonio property (7) 4,984,311 5,037,846 4.25 % 4.25 % 12/1/2021 Solar Turbines, Amec Foster, ITW Rippey properties (7) 9,101,005 9,214,700 3.35 % 3.35 % 11/1/2026 Dollar General Big Spring property (7) 593,851 599,756 4.50 % 4.50 % 4/1/2022 Gap property (7) 3,531,585 3,569,990 4.15 % 4.15 % 8/1/2023 L3Harris property (8) 6,300,000 5,185,929 3.35 % 3.35 % 5/21/2031 Sutter Health property (7) 13,739,153 13,879,655 4.50 % 4.50 % 3/9/2024 Walgreens property (7) 3,120,360 3,172,846 4.25 % 4.25 % 7/16/2030 Total mortgage notes payable 182,758,762 176,948,438 Plus unamortized mortgage premium, net (9) 390,426 447,471 Less unamortized deferred financing costs (1,572,582 ) (1,469,991 ) Mortgage notes payable, net $ 181,576,606 $ 175,925,918 (1) Contractual interest rate represents the interest rate in effect under the mortgage note payable as of June 30, 2021. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2021, consisting of the contractual interest rate and the effect of the interest rate swap, if applicable (see Note 8 (2) Reclassified to mortgage note payable at June 30, 2021 from mortgage note payable related to real estate investments held for sale as of December 31, 2020 due to a subsequent decision not to sell the real estate investment property securing the loan which was reclassified back to assets held and used from assets held for sale (see Note 3 for details (3) The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The loans are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the loans, is an event of default under the terms of both loans. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the loans so that the loan to value ratio is no more than 60%. (4) The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate becomes the U.S. Treasury Bill index rate plus 3.25%. (5) The initial contractual interest rate is 4.60% through February 20, 2023 and then the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% through February 20, 2028. (6) The mortgage note as of June 30, 2021 was refinanced on March 5, 2021 with a new lender and terms. The mortgage note as of December 31, 2020 was acquired through the Merger on December 31, 2019. (7) The loan was acquired through the Merger on December 31, 2019. (8) The loans on the Northrop Grumman and L3Harris properties were refinanced during the three months ended June 30, 2021. The initial contractual interest rate is 3.35% through June 1, 2026 and then the Prime Rate in effect as of June 1, 2026 plus 0.25% through May 21, 2031; provided that the second fixed interest rate will not be lower than 3.35% per annum. (9) Represents unamortized net mortgage premium acquired through the Merger. | As of December 31, 2020 and 2019, the Company’s mortgage notes payable consisted of the following: Collateral 2020 Principal Balance 2019 Principal Balance Contractual Interest Rate (1) Effective Interest Rate (1) Loan Maturity Accredo/Walgreens properties (8)(11) $ 8,538,000 $ 6,853,442 3.80 % 3.80 % 2025-08-01 Six Dollar General properties 3,747,520 3,819,264 4.69 % 4.69 % 2022-04-01 Dana property 4,466,865 4,551,250 4.56 % 4.56 % 2023-04-01 Northrop Grumman property 5,518,589 5,666,866 4.40 % 4.40 % 2022-07-02 exp US Services property 3,321,931 3,385,353 (3 ) 4.25 % 2024-11-17 Harley Davidson property (12) — 6,748,029 4.25 % 4.25 % 2024-09-01 Wyndham property (2) 5,607,000 5,716,200 One-month LIBOR + 2.05% 4.34 % 2027-06-05 Williams Sonoma property (2) 4,438,200 4,530,600 One-month LIBOR + 2.05% 4.34 % 2022-06-05 Omnicare property 4,193,171 4,273,552 4.36 % 4.36 % 2026-05-01 EMCOR property 2,811,539 2,862,484 4.35 % 4.35 % 2024-12-01 Husqvarna property 6,379,182 6,379,182 (4 ) 4.60 % 2028-02-20 AvAir property (9) 19,950,000 14,575,000 3.80 % 3.80 % 2025-08-01 3M property 8,166,000 8,290,000 One-month LIBOR + 2.25% 5.09 % 2023-03-29 Cummins property 8,332,200 8,458,600 One-month LIBOR + 2.25% 5.16 % 2023-04-04 Former 24 Hour Fitness property (5)(11) — 6,283,898 One-month LIBOR + 4.30% 4.64 % 2049-04-01 Texas Health property 4,363,203 4,400,000 4.00 % 4.00 % 2024-12-05 Bon Secours property 5,180,552 5,250,000 5.41 % 5.41 % 2026-09-15 Costco property 18,850,000 18,850,000 4.85 % 4.85 % 2030-01-01 Taylor Fresh Foods property 12,350,000 12,350,000 3.85 % 3.85 % 2029-11-01 Levins property (6)(13) 2,032,332 2,079,793 One-month LIBOR + 1.93% 3.74 % 2021-01-05 Island Pacific Supermarket property (6)(11) — 1,891,225 One-month LIBOR + 1.93% 3.74 % 2033-05-30 Dollar General Bakersfield property (6)(13) 2,268,922 2,324,338 One-month LIBOR + 1.48% 3.38 % 2021-03-05 Rite Aid property (6)(11) — 3,659,338 One-month LIBOR + 1.50% 3.25 % 2021-05-05 PMI Preclinical property (6)(13) 4,020,418 4,118,613 One-month LIBOR + 1.48% 3.38 % 2021-03-05 EcoThrift property (6)(12) — 2,639,237 One-month LIBOR + 1.21% 2.96 % 2021-07-05 GSA (MSHA) property (6)(13) 1,752,092 1,796,361 One-month LIBOR + 1.25% 3.13 % 2021-08-05 PreK Education property (6) 5,037,846 5,140,343 4.25 % 4.25 % 2021-12-01 Dinan Cars property (6)(7)(11) — 2,710,834 2.76 % 2.76 % 2022-01-05 Solar Turbines, Wood Group, ITW Rippey properties (6) 9,214,700 9,434,692 3.35 % 3.35 % 2026-11-01 Dollar General Big Spring property (6) 599,756 611,161 4.50 % 4.50 % 2022-04-01 Gap property (6) 3,569,990 3,643,166 4.15 % 4.15 % 2023-08-01 L-3 Communications property (6) 5,185,929 5,284,884 4.69 % 4.69 % 2022-04-01 Sutter Health property (6) 13,879,655 14,161,776 4.50 % 4.50 % 2024-03-09 Walgreens Santa Maria property (6)(10) 3,172,846 3,000,000 4.25 % 4.25 % 2030-07-16 Total mortgage notes payable 176,948,438 195,739,481 Plus: unamortized mortgage premium, net (14) 447,471 489,664 Less: unamortized deferred financing costs (1,469,991 ) (2,189,938 ) Mortgage notes payable, net $ 175,925,918 $ 194,039,207 (1) Contractual interest rate represents the interest rate in effect under the mortgage note payable as of December 31, 2020. Effective interest rate is calculated as the actual interest rate in effect as of December 31, 2020, consisting of the contractual interest rate and the effect of the interest rate swap, if applicable (see Note 8 for further information regarding the Company’s derivative instruments). (2) The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The notes are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the notes is an event of default under the terms of both notes. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the notes so that the loan to value ratio is no more than 60%. (3) The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate is the U.S. Treasury Bill index rate plus 3.25%. (4) The initial contractual interest rate is 4.60% through February 20, 2023 and then the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% through February 20, 2028. (5) The interest rate adjusts in the 133rd, 253rd and 313th months. As discussed in Note 4, during the three months ended March 31, 2020, the Company recorded an impairment charge of $5,664,517 related to its investment in the 24 Hour Fitness property in Las Vegas, Nevada due to the substantial impact on fitness centers from the COVID-19 pandemic and the requirement of an indefinite and potentially extended period of store closures and the resulting inability of the tenant to make rent payments. On April 1, 2020, the Company’s special purpose subsidiary initiated negotiations with the lender on the 24 Hour Fitness property regarding the special purpose subsidiary's request for a deferral of mortgage payments until the tenant resumes paying rent. The lender on this property did not agree to provide any substantial mortgage relief to the Company's special purpose subsidiary, but rather agreed to temporarily reduce its $32,000 monthly mortgage payment by $8,000 for four monthly payments from May 2020 through August 2020. On June 15, 2020, the Company received written notice that the lease was formally rejected in connection with 24 Hour Fitness' Chapter 11 bankruptcy proceeding and the premises were surrendered to the Company's subsidiary. The 24 Hour Fitness property was sold on December 15, 2020 as described in Note 4. (6) The loan was acquired through the Merger on December 31, 2019. (7) The Company negotiated a lease termination with Dinan Cars effective January 31, 2020 in exchange for a termination payment from Dinan cars of $783,182 which was used to reduce the principal balance of this mortgage by $650,000 and establish a payment reserve with the remaining $133,182. In connection with the principal prepayment, the Company terminated the related swap agreement on February 4, 2020 at a cost of $47,000. See Note 8 for further discussion of the swap agreement termination and Note 4 for details on the sale of the property on October 28, 2020. (8) The mortgage note with principal balance of $6,853,442 as of December 31, 2019 with an interest rate of 3.95% was refinanced on August 10, 2020 with a new loan for $8,538,000 with an interest rate of 3.80%, secured only by the Accredo property and is scheduled to mature on August 1, 2025. In connection with this refinancing, the mortgage note balance for the Walgreens Stockbridge, Georgia property was fully repaid. (9) The mortgage note with original principal of $14,575,000 as of December 31, 2019 with an effective interest rate of 4.84% was refinanced on July 29, 2020 with a new loan for $19,950,000 with an interest rate of 3.80%, secured only by the AvAir property and which will mature on August 1, 2020. (10) The mortgage note of $3,000,000 as of December 31, 2019 with an interest rate of 7.50% was refinanced on July 22, 2020 for $3,217,500 with an interest rate of 4.25%, and is scheduled to mature on July 16, 2030. (11) The Rite Aid property was sold on August 3, 2020, the Walgreens property on August 27, 2020, the Island Pacific property on September 16, 2020, the Dinan Cars property on October 28, 2020 and the property formerly leased to 24 Hour Fitness was sold on December 15, 2020. (12) The December 31, 2020 principal amount is included in mortgage notes payable related to investments held for sale, net (see details below). (13) The mortgage note was refinanced on March 5, 2021 with a new note bearing an interest rate of 3.65% - 3.75%, with a five (14) Represents unamortized net mortgage premium acquired through the Merger. |
Mortgage Notes Payable | The following summarizes the face value, carrying amount and fair value of the Company’s mortgage notes payable (Level 3 measurement) as of December 31, 2020 and 2019, respectively: 2020 2019 Face Value Carrying Value Fair Value Face Value Carrying Value Fair Value Mortgage notes payable $ 176,948,438 $ 175,925,918 $ 177,573,106 $ 195,739,481 $ 194,039,207 $ 200,535,334 | |
Mortgage Notes Payable Related to Real Estate Investments Held For Sale, Net | The following table summarizes the Company's mortgage notes payable related to real estate investments held for sale as of December 31, 2020: Collateral December 31, 2020 Harley Davidson property $ 6,623,346 EcoThrift property 2,573,509 Total 9,196,855 Plus unamortized mortgage premium 1,550 Less deferred financing costs (109,967 ) Mortgage notes payable related to real estate investments held for sale, net $ 9,088,438 | |
Unsecured Credit Facility, Net | The details of the Company's credit facilities as of June 30, 2021 and December 31, 2020 follow: June 30, 2021 December 31, 2020 Credit facility $ 3,000,000 $ 6,000,000 Less unamortized deferred financing costs (110,697 ) (21,724 ) Credit facility, net $ 2,889,303 $ 5,978,276 | Unsecured Credit Facility, Net The details of the Company's unsecured credit facility as of December 31, 2020 and 2019 follow: December 31, 2020 2019 Unsecured credit facility $ 6,000,000 $ 7,740,000 Less unamortized deferred financing costs (21,724 ) (90,139 ) Unsecured credit facility, net $ 5,978,276 $ 7,649,861 |
Debt Maturities | The following summarizes the future principal repayments of the Company’s mortgage notes payable, unsecured credit facility and short-term notes payable as of June 30, 2021: Mortgage Notes Payable Credit Facility Total July through December 2021 $ 6,196,648 $ 3,000,000 $ 9,196,648 2022 11,171,882 — 11,171,882 2023 22,203,304 — 22,203,304 2024 31,562,644 — 31,562,644 2025 28,970,205 — 28,970,205 2026 26,484,106 — 26,484,106 Thereafter 56,169,973 — 56,169,973 Total principal 182,758,762 3,000,000 185,758,762 Plus unamortized mortgage premium, net of unamortized discount 390,426 — 390,426 Less deferred financing costs (1,572,582 ) (110,697 ) (1,683,279 ) Net principal $ 181,576,606 $ 2,889,303 $ 184,465,909 | The following summarizes the future principal repayments of the Company’s mortgage notes payable, unsecured credit facility and short-term notes payable as of December 31, 2020: Mortgage Notes Payable Credit Facility Total 2021 $ 17,091,541 $ 6,000,000 $ 23,091,541 2022 20,873,759 — 20,873,759 2023 25,642,649 — 25,642,649 2024 24,599,437 — 24,599,437 2025 30,781,473 — 30,781,473 Thereafter 57,959,579 — 57,959,579 Total principal 176,948,438 6,000,000 182,948,438 Plus: unamortized mortgage premium, net of discount 447,471 — 447,471 Less: deferred financing costs, net (1,469,991 ) (21,724 ) (1,491,715 ) Total $ 175,925,918 $ 5,978,276 $ 181,904,194 |
Interest Expenses Reconciliation | The following is a reconciliation of the components of interest expense for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Mortgage notes payable: Interest expense $ 1,992,812 $ 2,129,678 $ 3,826,636 $ 4,300,183 Amortization of deferred financing costs 103,383 139,600 214,426 258,631 Prepayment penalties — — 23,900 47,000 (Gain) loss on interest rate swaps (1) (92,200 ) 70,985 (420,243 ) 1,395,697 Credit facilities: Interest expense 63,333 166,834 142,085 321,458 Amortization of deferred financing costs 22,139 42,876 43,863 75,336 Other 9,182 8,904 49,118 65,228 Total interest expense $ 2,098,649 $ 2,558,877 $ 3,879,785 $ 6,463,533 (1) Includes unrealized (gain) loss on interest rate swaps of $(90,600) and $7,785 for the three months ended June 30, 2021 and 2020, respectively, and $(517,719) and $1,292,752 for the six months ended June 30, 2021 and 2020, respectively (see Note 8 | The following is a reconciliation of the components of interest expense for the years ended December 31, 2020 and 2019: Years Ended December 31, 2020 2019 Mortgage notes payable: Interest expense $ 8,470,248 $ 5,698,606 Amortization of deferred financing costs 937,564 601,658 Loss on interest rate swaps (1) 1,172,781 843,174 Unsecured credit facility: Interest expense 527,047 190,130 Amortization of deferred financing costs 128,171 36,542 Other loan fees 224,936 12,500 Total interest expense $ 11,460,747 $ 7,382,610 (1) Includes unrealized loss on interest rate swaps of $770,898 and $820,496 for years ended December 31, 2020 and 2019, respectively (see Note 8). Accrued interest payable of $45,636 and $22,282 as of December 31, 2020 and 2019, respectively, represents the unsettled portion of the interest rate swaps for the period from origination of the interest rate swap through the respective balance sheet dates. |
INTEREST RATE SWAP DERIVATIVE_3
INTEREST RATE SWAP DERIVATIVES (FY) (Tables) | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Notional Amounts of Derivative Instruments | The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of June 30, 2021 and December 31, 2020, respectively: June 30, 2021 December 31, 2020 Derivative Instruments Number of Instruments Notional Amount (i) Reference Rate (ii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Number of Instruments Notional Amount (i) Reference Rate (iii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Interest Rate Swap Derivatives (iv) 4 $ 26,291,600 One-month LIBOR + applicable spread/Fixed at 4.05%-5.16% 4.55 % 2.6 years 8 $ 36,617,164 One-month LIBOR + applicable spread/Fixed at 3.13%-5.16% 3.35 % 2.2 years • The notional amount of the Company’s swaps decreases each month to correspond to the outstanding principal balance on the related mortgage. The minimum notional amounts (outstanding principal balance at the maturity date) as of June 30, 2021 and December 31, 2020 were $24,935,999 and $34,989,063, respectively. • The reference rate was as of June 30, 2021. • The reference rate was as of December 31, 2020. • The Company terminated swap agreements related to the GSA and Eco-Thrift properties during the six months ended June 30, 2021 and terminated the swap agreement related to the Dinan Cars property mortgage loan during the six months ended June 30, 2020 at aggregate costs of $23,900 and $47,000, respectively (see Note 7 | The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of December 31, 2020 and 2019. December 31, 2020 December 31, 2019 Derivative Instruments Number of Instruments Notional Amount (i) Reference Rate (ii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Number of Instruments Notional Amount (i) Reference Rate (iii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Interest Rate Swap Derivatives 8 $ 36,617,164 One-month LIBOR + applicable spread/Fixed at 3.13%-5.16% 3.35 % 2.2 years 12 $ 48,215,139 One-month LIBOR + applicable spread/Fixed at 2.76%-5.16% 3.87 % 2.9 years (i) The notional amount of the Company’s swaps decreases each month to correspond to the outstanding principal balance on the related mortgage. The minimum notional amounts (outstanding principal balance at the maturity date) as of December 31, 2020 and 2019 were $34,989,063 and $45,514,229, respectively. (ii) The reference rate was as of December 31, 2020. (iii) The reference rate was as of December 31, 2019. | |
Fair Value of Derivative Instruments | The following table sets forth the fair value of the Company’s derivative instruments (Level 2 measurement), as well as their classification in the consolidated balance sheets: December 31, 2020 December 31, 2019 Derivative Instrument Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Interest Rate Swaps Asset - Interest rate swap derivatives, at fair value (*) — $ — 5 $ 34,567 Interest Rate Swaps Liability - Interest rate swap derivatives, at fair value (*) 8 $ (1,743,889 ) 7 $ (1,021,724 ) (*) The fair value of the five interest rate swap derivative assets and three interest rate derivative liabilities assumed from the Merger was $34,567 and $(51,514), respectively, as of December 31, 2019. | The following table sets forth the fair value of the Company’s derivative instruments (Level 2 measurement), as well as their classification in the unaudited condensed consolidated balance sheets: June 30, 2021 December 31, 2020 Derivative Instrument Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Interest Rate Swaps Asset - Interest rate swap derivatives, at fair value — $ — — $ — Interest Rate Swaps Liability - Interest rate swap derivatives, at fair value 4 $ (1,240,336 ) 8 $ (1,743,889 ) |
RELATED PARTY TRANSACTIONS (F_2
RELATED PARTY TRANSACTIONS (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Related Party Costs | The total fees incurred for board services and paid by the Company for the three and six months ended June 30, 2021 and 2020, is as follows: Three Months Ended June 30, Six Months Ended June 30, Board of Directors Compensation 2021 2020 2021 2020 Cash paid for services rendered $ 60,000 $ — $ 60,000 $ 31,250 Value of shares issued for services rendered 110,000 70,000 180,000 72,083 Total $ 170,000 $ 70,000 $ 240,000 $ 103,333 Number of shares issued for services rendered (*) 4,470 2,272 7,510 2,355 * Adjusted for the 1:3 reverse stock split for the three and six months ended June 30, 2020. | Summarized below are the related party costs incurred by the Company and related party receivable and payable as of December 31, 2019: Year Ended December 31, 2019 December 31, 2019 Incurred Receivable Payable Expensed: Asset management fees (1) $ 2,777,021 $ — $ — Reimbursable operating expense 528,000 — — Fees to affiliates 3,305,021 — — Property management fees* 224,922 — — Directors and officers insurance and other reimbursements ** 250,892 — — Expense reimbursements from Former Sponsor (2) (332,337 ) — — Capitalized: Acquisition fees 746,459 — — Financing coordination fees 107,500 — — Reimbursable organizational and offering expenses (3) 1,206,881 — — Other: Due from BRIX REIT (4) — 1,378 — Due from TIC — 954 — Notes due to Chairman of the Board — — $ 630,820 $ 2,332 $ 630,820 * Property management fees are classified within property expenses on the consolidated statements of operations. ** Directors and officers insurance and other reimbursements are classified within general and administrative expenses on the consolidated statements of operations. (1) To the extent the Former Advisor elected, in its sole discretion, to defer all or any portion of its monthly asset management fee, the Former Advisor was deemed to have waived, not deferred, that portion up to 0.025% of the total investment value of the Company’s assets. For the year ended December 31, 2019, the Former Advisor did not waive any of the asset management fees. In addition to amounts presented in this table, the Company also incurred asset management fees to the Former Advisor of $191,933 related to the TIC Interest during the year ended December 31, 2019, which amount was reflected as reductions of income recognized from investments in unconsolidated entities (see Note 5 (2) Includes payroll costs related to Company employees that answer questions from prospective stockholders. See “ Investor Relations Payroll Compensation Expense Reimbursements from Former Sponsor (3) Through the termination date on September 30, 2019, the Former Sponsor incurred $9,224,997 of organizational and offering costs on behalf of the Company. However, the Company was only obligated to reimburse the Former Sponsor for such organizational and offering expenses to the extent of 3% of gross offering proceeds. (4) The receivables represent incidental expenses advanced to BRIX REIT, which included unpaid asset management fees of $285,818 due from BRIX REIT, which were fully reserved and the Company agreed to waive in May 2020 given the impact of the COVID-19 pandemic on BRIX REIT. The Company’s portion of asset management fees paid to a subsidiary of the Company in 2020 and the Former Advisor in 2019 relating to the TIC Interest for the years ended December 31, 2020 and 2019 was as follows: Years Ended December 31, 2020 2019 Asset management fees $ 191,933 $ 191,907 The Company’s portion of Former Advisor fees paid relating to REIT I for the year ended December 31, 2019 was as follows: Year Ended December 31, 2019 Expensed: Asset management fees $ 34,968 Other 16,800 Total $ 51,768 |
SUBSEQUENT EVENTS (FY) (Tables)
SUBSEQUENT EVENTS (FY) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Mortgage Notes Payable | On March 5, 2021, the Company refinanced the following mortgage notes: December 31, 2020 New Original New Properties Principal Amount Principal Amount Prior Interest Rate New Interest Rate Maturity Date Maturity Date Levins $ 2,032,332 $ 2,700,000 3.74 % 3.75 % 3/5/2021 3/16/2026 Dollar General Bakersfield $ 2,268,922 $ 2,280,000 3.38 % 3.65 % 3/5/2021 3/16/2028 PMI Preclinical $ 4,020,418 $ 5,400,000 3.38 % 3.75 % 3/5/2021 3/16/2026 GSA (MSHA) $ 1,752,092 $ 1,756,000 3.13 % 3.65 % 8/5/2021 3/16/2026 |
BUSINESS AND ORGANIZATION (Q2)
BUSINESS AND ORGANIZATION (Q2) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Net Asset Value Per Share | Since December 31, 2020, the Company’s board of directors has approved and established an updated estimated NAV per share of the Company’s Class C common stock and Class S common stock as follows: Valuation Date Effective Date NAV Per Share December 31, 2020 January 27, 2021 $ 23.03 March 31, 2021 May 5, 2021 $ 24.61 June 30, 2021 August 4, 2021 $ 26.05 |
REAL ESTATE INVESTMENTS, NET _2
REAL ESTATE INVESTMENTS, NET (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Real Estate [Abstract] | ||
Schedule of Real Estate Properties | The following table provides summary information regarding the Company’s operating properties as of June 30, 2021: Property Location Acquisition Date Property Type Land, Buildings and Improvements Tenant Origination and Absorption Costs Accumulated Depreciation and Amortization Total Investment in Real Estate Property, Net Accredo Health Orlando, FL 6/15/2016 Office $ 9,855,847 $ 1,269,350 $ (2,444,918 ) $ 8,680,279 Dollar General Litchfield, ME 11/4/2016 Retail 1,281,812 116,302 (186,127 ) 1,211,987 Dollar General Wilton, ME 11/4/2016 Retail 1,543,776 140,653 (238,203 ) 1,446,226 Dollar General Thompsontown, PA 11/4/2016 Retail 1,199,860 106,730 (178,835 ) 1,127,755 Dollar General Mt. Gilead, OH 11/4/2016 Retail 1,174,188 111,847 (171,462 ) 1,114,573 Dollar General Lakeside, OH 11/4/2016 Retail 1,112,872 100,857 (175,973 ) 1,037,756 Dollar General Castalia, OH 11/4/2016 Retail 1,102,086 86,408 (170,976 ) 1,017,518 Northrop Grumman Melbourne, FL 3/7/2017 Office 12,382,991 1,469,737 (3,363,521 ) 10,489,207 exp US Services Maitland, FL 3/27/2017 Office 6,056,668 388,248 (945,261 ) 5,499,655 Harley (1) Bedford, TX 4/13/2017 Retail 12,947,054 — (1,196,054 ) 11,751,000 Wyndham Summerlin, NV 6/22/2017 Office 10,406,483 669,232 (1,347,468 ) 9,728,247 Williams Sonoma Summerlin, NV 6/22/2017 Office 8,079,612 550,486 (1,214,232 ) 7,415,866 Omnicare Richmond, VA 7/20/2017 Industrial 7,262,747 281,442 (954,774 ) 6,589,415 EMCOR Cincinnati, OH 8/29/2017 Office 5,960,610 463,488 (693,863 ) 5,730,235 Husqvarna Charlotte, NC 11/30/2017 Industrial 11,840,200 1,013,948 (1,292,198 ) 11,561,950 AvAir Chandler, AZ 12/28/2017 Industrial 27,357,899 — (2,458,171 ) 24,899,728 3 M DeKalb, IL 3/29/2018 Industrial 14,762,819 2,356,361 (4,099,258 ) 13,019,922 Cummins Nashville, TN 4/4/2018 Office 14,465,491 1,536,998 (2,549,219 ) 13,453,270 Northrop Grumman Parcel Melbourne, FL 6/21/2018 Land 329,410 — — 329,410 Texas Health Dallas, TX 9/13/2018 Office 6,976,703 713,221 (829,997 ) 6,859,927 Bon Secours Richmond, VA 10/31/2018 Office 10,388,751 800,356 (1,204,744 ) 9,984,363 Costco Issaquah, WA 12/20/2018 Office 27,330,797 2,765,136 (3,305,667 ) 26,790,266 Taylor Fresh Foods Yuma, AZ 10/24/2019 Industrial 34,194,369 2,894,017 (2,257,859 ) 34,830,527 Levins Sacramento, CA 12/31/2019 Industrial 4,429,390 221,927 (330,913 ) 4,320,404 Dollar General Bakersfield, CA 12/31/2019 Retail 4,899,714 261,630 (220,698 ) 4,940,646 Labcorp San Carlos, CA 12/31/2019 Industrial 9,672,174 408,225 (306,481 ) 9,773,918 GSA (MSHA) Vacaville, CA 12/31/2019 Office 3,112,076 243,307 (207,772 ) 3,147,611 PreK Education San Antonio, TX 12/31/2019 Retail 12,447,287 555,767 (899,142 ) 12,103,912 Dollar Tree Morrow, GA 12/31/2019 Retail 1,320,367 73,298 (106,366 ) 1,287,299 Solar Turbines San Diego, CA 12/31/2019 Office 7,133,241 284,026 (507,486 ) 6,909,781 Wood Group San Diego, CA 12/31/2019 Industrial 9,731,220 539,633 (742,040 ) 9,528,813 ITW Rippey El Dorado, CA 12/31/2019 Industrial 7,071,143 304,387 (456,010 ) 6,919,520 Dollar General Big Spring, TX 12/31/2019 Retail 1,281,683 76,351 (76,453 ) 1,281,581 Gap Rocklin, CA 12/31/2019 Office 8,378,276 360,377 (718,960 ) 8,019,693 L3Harris San Diego, CA 12/31/2019 Industrial 11,631,857 454,035 (706,233 ) 11,379,659 Sutter Health Rancho Cordova, CA 12/31/2019 Office 29,555,055 1,616,610 (1,620,523 ) 29,551,142 Walgreens Santa Maria, CA 12/31/2019 Retail 5,223,442 335,945 (199,441 ) 5,359,946 $ 343,899,970 $ 23,570,335 $ (38,377,298 ) $ 329,093,007 (1) Reclassified to real estate investment held for investment and use during the second quarter of 2021 from real estate held for sale beginning September 30, 2020 (see detailed discussion below). The details of the Company's real estate impairment charges for the three and six months ended June 30, 2020 were as follows: Property Location Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Rite Aid Lake Elsinore, CA $ 349,457 $ 349,457 Dana Cedar Park, TX — 2,184,395 24 Hour Fitness Las Vegas, NV — 5,664,517 Dinan Cars Morgan Hill, CA — 1,308,156 Total $ 349,457 $ 9,506,525 | The following table provides summary information regarding the Company’s real estate portfolio as of December 31, 2020: Property Location Acquisition Date Property Type Land, Buildings and Improvements Tenant Origination and Absorption Costs Accumulated Depreciation and Amortization Total Investment in Real Estate Property, Net Accredo Health Orlando, FL 6/15/2016 Office $ 9,855,847 $ 1,269,351 $ (2,221,380 ) $ 8,903,818 Dollar General Litchfield, ME 11/4/2016 Retail 1,281,812 116,302 (166,006 ) 1,232,108 Dollar General Wilton, ME 11/4/2016 Retail 1,543,776 140,653 (212,451 ) 1,471,978 Dollar General Thompsontown, PA 11/4/2016 Retail 1,199,860 106,730 (159,501 ) 1,147,089 Dollar General Mt. Gilead, OH 11/4/2016 Retail 1,174,188 111,847 (152,925 ) 1,133,110 Dollar General Lakeside, OH 11/4/2016 Retail 1,112,872 100,857 (156,949 ) 1,056,780 Dollar General Castalia, OH 11/4/2016 Retail 1,102,086 86,408 (152,492 ) 1,036,002 Dana Cedar Park, TX 12/27/2016 Industrial 6,802,876 531,439 (1,835,800 ) 5,498,515 Northrop Grumman Melbourne, FL 3/7/2017 Office 12,382,991 1,341,199 (2,968,985 ) 10,755,205 exp US Services Maitland, FL 3/27/2017 Office 6,056,668 388,248 (833,278 ) 5,611,638 Wyndham Summerlin, NV 6/22/2017 Office 10,406,483 669,232 (1,170,222 ) 9,905,493 Williams Sonoma Summerlin, NV 6/22/2017 Office 8,079,612 550,486 (1,058,455 ) 7,571,643 Omnicare Richmond, VA 7/20/2017 Industrial 7,262,747 281,442 (832,474 ) 6,711,715 EMCOR Cincinnati, OH 8/29/2017 Office 5,960,610 463,488 (604,163 ) 5,819,935 Husqvarna Charlotte, NC 11/30/2017 Industrial 11,840,200 1,013,948 (1,113,651 ) 11,740,497 AvAir Chandler, AZ 12/28/2017 Industrial 27,357,900 — (2,111,134 ) 25,246,766 3M DeKalb, IL 3/29/2018 Industrial 14,762,819 2,356,361 (3,476,588 ) 13,642,592 Cummins Nashville, TN 4/4/2018 Office 14,465,491 1,536,998 (2,151,938 ) 13,850,551 Northrop Grumman Parcel Melbourne, FL 6/21/2018 Land 329,410 — — 329,410 Texas Health Dallas, TX 9/13/2018 Office 6,976,703 713,221 (681,341 ) 7,008,583 Bon Secours Richmond, VA 10/31/2018 Office 10,388,751 800,356 (978,335 ) 10,210,772 Costco Issaquah, WA 12/20/2018 Office 27,330,797 2,765,136 (2,654,329 ) 27,441,604 Taylor Fresh Foods Yuma, AZ 10/24/2019 Industrial 34,194,369 2,894,017 (1,597,022 ) 35,491,364 Levins Sacramento, CA 12/31/2019 Industrial 4,429,390 221,927 (220,609 ) 4,430,708 Dollar General Bakersfield, CA 12/31/2019 Retail 4,899,714 261,630 (147,132 ) 5,014,212 PMI Preclinical San Carlos, CA 12/31/2019 Industrial 9,672,174 408,225 (204,321 ) 9,876,078 GSA (MSHA) Vacaville, CA 12/31/2019 Office 3,112,076 243,307 (138,515 ) 3,216,868 PreK Education San Antonio, TX 12/31/2019 Retail 12,447,287 447,927 (599,428 ) 12,295,786 Dollar Tree Morrow, GA 12/31/2019 Retail 1,320,367 73,298 (70,911 ) 1,322,754 Solar Turbines San Diego, CA 12/31/2019 Office 7,133,241 284,026 (338,232 ) 7,079,035 Wood Group San Diego, CA 12/31/2019 Industrial 9,731,220 466,293 (565,017 ) 9,632,496 ITW Rippey El Dorado Hills, CA 12/31/2019 Industrial 7,071,143 304,387 (303,219 ) 7,072,311 Dollar General Big Spring, TX 12/31/2019 Retail 1,281,683 76,351 (50,969 ) 1,307,065 Gap Rocklin, CA 12/31/2019 Office 8,378,276 360,377 (479,306 ) 8,259,347 L-3 Communications Carlsbad, CA 12/31/2019 Industrial 11,631,857 454,035 (470,823 ) 11,615,069 Sutter Health Rancho Cordova, CA 12/31/2019 Office 29,555,055 1,616,610 (1,080,349 ) 30,091,316 Walgreens Santa Maria, CA 12/31/2019 Retail 5,223,442 335,945 (132,961 ) 5,426,426 $ 337,755,793 $ 23,792,057 $ (32,091,211 ) $ 329,456,639 The details of the Company's real estate impairment charges for the year ended December 31, 2020 were as follows: Property Location Year Ended December 31, 2020 Dana Cedar Park, TX $ 2,184,395 24 Hour Fitness Las Vegas, NV 5,664,517 Dinan Cars Morgan Hill, CA 1,308,156 Rite Aid Lake Elsinore, CA 349,457 Harley Davidson Bedford, TX 632,233 Chevron Gas Station San Jose, CA 128,867 $ 10,267,625 |
Dispositions and Real Estate Investments Held for Sale | There were no disposals of properties during the three months ended June 30, 2021 nor during the three and six months ended June 30, 2020. The Company sold the following properties during the first quarter of 2021: Property Location Disposition Date Property Type Rentable Square Feet Contract Sale Price Gain on Sale Chevron Gas Station Roseville, CA 1/7/2021 Retail 3,300 $ 4,050,000 $ 228,769 EcoThrift Sacramento, CA 1/29/2021 Retail 38,536 5,375,300 51,415 Chevron Gas Station San Jose, CA 2/12/2021 Retail 1,060 4,288,888 9,458 Total 42,896 $ 13,714,188 $ 289,642 The following table summarizes the major components of assets and liabilities related to real estate investments held for sale as of June 30, 2021 (Dana property) and December 31, 2020 (Harley Davidson, EcoThrift and two Chevron properties): June 30, 2021 December 31, 2020 Assets related to real estate investments held for sale: Land, buildings and improvements $ 6,802,876 $ 25,675,459 Tenant origination and absorption costs 531,439 554,788 Accumulated depreciation and amortization (1,958,569 ) (1,644,508 ) Real estate investments held for sale, net 5,375,746 24,585,739 Other assets, net 671,265 1,079,361 Total assets related to real estate investments held for sale: $ 6,047,011 $ 25,665,100 Liabilities related to real estate investments held for sale: Mortgage notes payable, net $ 4,381,426 $ 9,088,438 Other liabilities, net 227,433 801,337 Total liabilities related to real estate investments held for sale: $ 4,608,859 $ 9,889,775 The following table summarizes the major components of rental income, expenses and impairment related to real estate investments held for sale as of June 30, 2021 (the property leased to Dana) and 2020 (the property leased to Island Pacific Supermarket located in Elk Grove, CA, the property leased to Rite Aid located in Lake Elsinore, CA, the property leased to Walgreens located in Stockbridge, GA and the property previously leased to Dinan Cars located in Morgan Hill, CA), which were included in continuing operations for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total revenues $ 342,198 $ 312,060 $ 716,160 $ 1,480,909 Expenses: Interest expense 63,207 83,658 138,629 221,022 Depreciation and amortization 49,108 185,658 122,769 375,575 Other expenses 78,857 101,131 145,797 221,811 Impairment — 349,457 — 1,657,613 Total expenses 191,172 719,904 407,195 2,476,021 Net income (loss) $ 151,026 $ (407,844 ) $ 308,965 $ (995,112 ) | The Company sold the following properties during the year ended December 31, 2020: Property Location Disposition Date Property Type Rentable Square Feet Contract Sale Price Gain (Loss) on Sale Rite Aid Lake Elsinore, CA 8/3/2020 Retail 17,272 $ 7,250,000 $ (422 ) Walgreens Stockbridge, GA 8/27/2020 Retail 15,120 5,538,462 1,306,768 Island Pacific Supermarket Elk Grove, CA 9/16/2020 Retail 13,963 3,155,000 387,296 Dinan Cars Morgan Hill, CA 10/28/2020 Industrial 27,296 6,100,000 961,836 24 Hour Fitness Las Vegas, NV 12/16/2020 Retail 45,000 9,052,941 1,484,271 118,651 $ 31,096,403 $ 4,139,749 The following table summarizes the major components of assets and liabilities related to real estate investments held for sale as of December 31, 2020: December 31, 2020 Assets related to real estate investments held for sale: Land, buildings and improvements $ 25,675,459 Tenant origination and absorption costs 554,788 Accumulated depreciation and amortization (1,644,508 ) Real estate investments held for sale, net 24,585,739 Other assets, net 1,079,361 Total assets related to real estate investments held for sale: $ 25,665,100 Liabilities related to real estate investments held for sale: Mortgage notes payable, net $ 9,088,438 Other liabilities, net 801,337 Total liabilities related to real estate investments held for sale: $ 9,889,775 The following table summarizes the major components of rental income, expenses and impairment related to real estate investments held for sale as of December 31, 2020, which were included in continuing operations for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Total revenues $ 2,326,058 $ 1,325,265 Expenses: Interest expense 552,246 323,460 Depreciation and amortization 737,278 344,708 Other expenses 352,280 385,282 Impairment of real estate properties 761,100 — Total expenses 2,402,904 1,053,450 Net (loss) income $ (76,846 ) $ 271,815 |
Rental Payments for Operating Leases | As of June 30, 2021, the future minimum contractual rent payments due to the Company under the Company’s non-cancellable operating leases, including lease amendments executed through August 13, 2021 and excluding rents due related to the real estate investments held for sale, are as follows: July through December 2021 $ 13,219,545 2022 25,533,893 2023 22,070,671 2024 21,588,111 2025 18,369,437 2026 11,524,427 Thereafter 42,329,568 $ 154,635,652 | As of December 31, 2020, the future minimum contractual rent payments due under the Company’s noncancelable operating leases, including lease amendments executed subsequent to December 31, 2020 and excluding rents due related to real estate investments held for sale, are as follows: 2021 $ 26,761,843 2022 24,418,710 2023 20,157,378 2024 19,674,819 2025 16,456,145 Thereafter 43,827,967 $ 151,296,862 |
Intangible Assets | As of June 30, 2021, the Company’s lease intangible assets were as follows: Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles Cost $ 23,570,335 $ 1,128,549 $ (15,097,132 ) Accumulated amortization (11,210,646 ) (372,620 ) 3,266,545 Net amount $ 12,359,689 $ 755,929 $ (11,830,587 ) | |
Intangible Assets Amortization | As of June 30, 2021, the amortization of intangible assets for the nine months ending December 31, 2021 and for each year of the next five years and thereafter is expected to be as follows: Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles July through December 2021 $ 1,609,387 $ 64,909 $ (727,614 ) 2022 2,682,533 129,823 (1,217,029 ) 2023 1,805,532 127,174 (921,169 ) 2024 1,689,428 122,543 (917,750 ) 2025 1,311,545 115,996 (917,750 ) 2026 601,734 78,557 (912,347 ) Thereafter 2,659,530 116,927 (6,216,928 ) $ 12,359,689 $ 755,929 $ (11,830,587 ) Weighted-average remaining amortization period 7.1 6.8 11.9 | As of December 31, 2020, amortization of intangible assets for each year of the next five years and thereafter is expected to be as follows: Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles 2021 $ 3,801,383 $ 129,823 $ (1,462,730 ) 2022 2,628,700 129,823 (1,217,076 ) 2023 1,751,653 127,174 (921,169 ) 2024 1,625,159 122,543 (917,750 ) 2025 1,242,973 115,995 (917,750 ) Thereafter 3,046,229 195,484 (7,129,262 ) $ 14,096,097 $ 820,842 $ (12,565,737 ) Weighted-Average Remaining Amortization Period 7.1 years 7.2 years 12.2 years |
INVESTMENT IN UNCONSOLIDATED _4
INVESTMENT IN UNCONSOLIDATED ENTITY (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Investments | The Company’s investment in unconsolidated entity as of June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 The TIC Interest $ 9,987,703 $ 10,002,368 | The Company’s investment in unconsolidated entity as of December 31, 2020 and 2019 is as follows: December 31, 2020 2019 The TIC Interest $ 10,002,368 $ 10,388,588 |
Entities Equity In Earnings | The Company’s income from investment in unconsolidated entity for the three and six months ended June 30, 2021 and 2020, is as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 The TIC Interest $ 74,834 $ 125,658 $ 147,302 $ 146,411 | |
Summarized Financial Information | The following is summarized financial information for the Santa Clara property as of and for the years ended December 31, 2020 and 2019: December 31, 2020 2019 Assets: Real estate investments, net $ 29,906,146 $ 30,858,240 Cash and cash equivalents 380,774 275,760 Other assets 164,684 228,770 Total assets $ 30,451,604 $ 31,362,770 Liabilities: Mortgage notes payable, net $ 13,489,126 $ 13,746,635 Below-market lease, net 2,806,973 2,953,360 Other liabilities 92,777 68,587 Total liabilities 16,388,876 16,768,582 Total equity 14,062,728 14,594,188 Total liabilities and equity $ 30,451,604 $ 31,362,770 Years Ended December 31, 2020 2019 Total revenue $ 2,694,874 $ 2,705,126 Expenses: Depreciation and amortization 999,929 993,564 Interest expense 565,778 574,086 Other expenses 721,279 731,044 Total expenses 2,286,986 2,298,694 Net income $ 407,888 $ 406,432 The following is REIT I's summarized results of operations for the year ended December 31, 2019: Year Ended December 31, 2019 Total revenue $ 13,132,226 Expenses: Depreciation and amortization 5,787,709 Interest expense 3,425,625 Other expenses 5,342,365 Total expenses 14,555,699 Other income: Gain on sale of real estate investment property, net (1,850,845 ) Loss on debt restructuring 1,964,618 Total other income 113,773 Net loss $ (1,309,700 ) | |
The TIC Interest | ||
Schedule of Equity Method Investments [Line Items] | ||
Summarized Financial Information | The following is summarized financial information for the Santa Clara property as of June 30, 2021 and December 31, 2020 and for the three and six months ended June 30, 2021 and 2020: June 30, 2021 December 31, 2020 Assets: Real estate investments, net $ 29,406,115 $ 29,906,146 Cash and cash equivalents 786,775 380,774 Other assets 50,041 164,684 Total assets $ 30,242,931 $ 30,451,604 Liabilities: Mortgage note payable, net $ 13,354,714 $ 13,489,126 Below-market lease, net 2,733,780 2,806,973 Other liabilities 111,598 92,777 Total liabilities 16,200,092 16,388,876 Total equity 14,042,839 14,062,728 Total liabilities and equity $ 30,242,931 $ 30,451,604 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total revenues $ 676,936 $ 751,653 $ 1,350,912 $ 1,349,573 Expenses: Interest expense 138,036 140,906 275,642 282,609 Depreciation and amortization 250,015 250,680 500,030 499,898 Other expenses 185,964 187,246 372,652 365,703 Total expenses 574,015 578,832 1,148,324 1,148,210 Net income $ 102,921 $ 172,821 $ 202,588 $ 201,363 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Net Carrying Amount of Goodwill | The changes in carrying value of goodwill as of June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 December 31, 2020 Beginning balance $ 17,320,857 $ 50,588,000 Impairment of goodwill for the three and the 12 months period ended, respectively — (33,267,143 ) Ending balance $ 17,320,857 $ 17,320,857 | The net carrying amount of goodwill as of December 31, 2020 and 2019 is as follows: December 31, 2020 2019 Goodwill $ 17,320,857 $ 50,588,000 |
Schedule of Finite-Lived Intangible Assets | The following table sets forth the Company's intangible assets, net as of June 30, 2021 and December 31, 2020 and their related useful lives: Intangible Assets Weighted- Average Useful Life June 30, 2021 December 31, 2020 Investor list, net 5.0 years $ 3,494,740 $ 3,494,740 Web services technology, domains and licenses 3.0 years 3,577,852 3,466,102 7,072,592 6,960,842 Accumulated amortization (2,758,793 ) (1,833,054 ) Net $ 4,313,799 $ 5,127,788 | As of December 31, 2020 and 2019, the Company’s intangible assets were as follows: December 31, 2020 December 31, 2019 Tenant Origination and Absorption Costs Above-Market Lease Intangibles Below-Market Lease Intangibles Tenant Origination and Absorption Above-Market Lease Intangibles Below-Market Lease Intangibles Cost $ 23,792,057 $ 1,128,549 $ (15,163,672 ) $ 27,266,610 $ 1,547,646 $ (15,713,975 ) Accumulated amortization (9,695,960 ) (307,707 ) 2,597,935 (6,005,248 ) (295,912 ) 1,122,616 Net amount $ 14,096,097 $ 820,842 $ (12,565,737 ) $ 21,261,362 $ 1,251,734 $ (14,591,359 ) |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Supplemental Balance Sheet Disclosure [Abstract] | ||
Summary of Tenant receivables | Tenant receivables consisted of the following: June 30, 2021 December 31, 2020 Straight-line rent $ 5,163,964 $ 4,344,388 Tenant rent 384,661 204,775 Tenant reimbursements 1,607,198 2,116,627 Total $ 7,155,823 $ 6,665,790 | Tenant receivables consisted of the following: December 31, 2020 2019 Straight-line rent $ 4,344,388 $ 3,541,238 Tenant rent 204,775 420,959 Tenant reimbursements 1,979,963 1,854,883 Tenant other 136,664 407,684 Total $ 6,665,790 $ 6,224,764 Accounts payable, accrued and other liabilities were comprised of the following: December 31, 2020 2019 Accounts payable $ 1,136,954 $ 660,111 Accrued expenses (a) 3,068,714 5,773,214 Accrued dividends 706,106 962,615 Accrued interest payable 629,628 1,690,168 Unearned rent 2,033,065 1,963,896 Lease incentive obligation 5,157 505,157 Total $ 7,579,624 $ 11,555,161 (a) Includes accrued Merger expenses of $1,570,622 as of December 31, 2019. |
Accounts Payable, Accrued and Other Liabilities | Accounts payable, accrued and other liabilities were comprised of the following: June 30, 2021 December 31, 2020 Accounts payable $ 398,793 $ 1,136,954 Accrued expenses 2,505,713 3,068,714 Accrued distributions 649,812 706,106 Accrued interest payable 580,882 629,628 Unearned rent 1,684,491 2,033,065 Lease incentive obligation 2,133,695 5,157 Total $ 7,953,386 $ 7,579,624 |
DEBT (Q2) (Tables)
DEBT (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Schedule of Debt | As of June 30, 2021 and December 31, 2020, the Company’s mortgage notes payable consisted of the following: Collateral 2021 Principal Amount 2020 Principal Amount Contractual Interest Rate (1) Effective Interest Rate (1) Loan Maturity Accredo property $ 8,538,000 $ 8,538,000 3.80 % 3.80 % 8/1/2025 Six Dollar General properties 3,711,118 3,747,520 4.69 % 4.69 % 4/1/2022 Dana property — 4,466,865 4.56 % 4.56 % 4/1/2023 Northrop Grumman property (8) 7,000,000 5,518,589 3.35 % 3.35 % 5/21/2031 exp US Services property 3,288,786 3,321,931 (4 ) 4.25 % 11/17/2024 Harley Davidson property (2) 6,558,170 — 4.25 % 4.25 % 9/1/2024 Wyndham property (3) 5,551,200 5,607,000 One-month LIBOR + 2.05% 4.34 % 6/5/2027 Williams Sonoma property (3) 4,392,000 4,438,200 One-month LIBOR + 2.05% 4.34 % 6/5/2022 Omnicare property 4,151,386 4,193,171 4.36 % 4.36 % 5/1/2026 EMCOR property 2,784,868 2,811,539 4.35 % 4.35 % 12/1/2024 Husqvarna property 6,379,182 6,379,182 (5 ) 4.60 % 2/20/2028 AvAir property 19,950,000 19,950,000 3.80 % 3.80 % 8/1/2025 3M property 8,091,800 8,166,000 One-month LIBOR + 2.25% 5.09 % 3/29/2023 Cummins property 8,256,600 8,332,200 One-month LIBOR + 2.25% 5.16 % 4/4/2023 Texas Health property 4,324,160 4,363,203 4.00 % 4.00 % 12/5/2024 Bon Secours property 5,142,425 5,180,552 5.41 % 5.41 % 9/15/2026 Costco property 18,850,000 18,850,000 4.85 % 4.85 % 1/1/2030 Taylor Fresh Foods 12,350,000 12,350,000 3.85 % 3.85 % 11/1/2029 Levins property (6) 2,687,293 2,032,332 3.75 % 3.75 % 2/16/2026 Dollar General Bakersfield property (6) 2,263,573 2,268,922 3.65 % 3.65 % 2/16/2028 Labcorp property (6) 5,374,587 4,020,418 3.75 % 3.75 % 2/16/2026 GSA (MSHA) property (6) 1,743,349 1,752,092 3.65 % 3.65 % 2/16/2026 PreK San Antonio property (7) 4,984,311 5,037,846 4.25 % 4.25 % 12/1/2021 Solar Turbines, Amec Foster, ITW Rippey properties (7) 9,101,005 9,214,700 3.35 % 3.35 % 11/1/2026 Dollar General Big Spring property (7) 593,851 599,756 4.50 % 4.50 % 4/1/2022 Gap property (7) 3,531,585 3,569,990 4.15 % 4.15 % 8/1/2023 L3Harris property (8) 6,300,000 5,185,929 3.35 % 3.35 % 5/21/2031 Sutter Health property (7) 13,739,153 13,879,655 4.50 % 4.50 % 3/9/2024 Walgreens property (7) 3,120,360 3,172,846 4.25 % 4.25 % 7/16/2030 Total mortgage notes payable 182,758,762 176,948,438 Plus unamortized mortgage premium, net (9) 390,426 447,471 Less unamortized deferred financing costs (1,572,582 ) (1,469,991 ) Mortgage notes payable, net $ 181,576,606 $ 175,925,918 (1) Contractual interest rate represents the interest rate in effect under the mortgage note payable as of June 30, 2021. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2021, consisting of the contractual interest rate and the effect of the interest rate swap, if applicable (see Note 8 (2) Reclassified to mortgage note payable at June 30, 2021 from mortgage note payable related to real estate investments held for sale as of December 31, 2020 due to a subsequent decision not to sell the real estate investment property securing the loan which was reclassified back to assets held and used from assets held for sale (see Note 3 for details (3) The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The loans are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the loans, is an event of default under the terms of both loans. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the loans so that the loan to value ratio is no more than 60%. (4) The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate becomes the U.S. Treasury Bill index rate plus 3.25%. (5) The initial contractual interest rate is 4.60% through February 20, 2023 and then the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% through February 20, 2028. (6) The mortgage note as of June 30, 2021 was refinanced on March 5, 2021 with a new lender and terms. The mortgage note as of December 31, 2020 was acquired through the Merger on December 31, 2019. (7) The loan was acquired through the Merger on December 31, 2019. (8) The loans on the Northrop Grumman and L3Harris properties were refinanced during the three months ended June 30, 2021. The initial contractual interest rate is 3.35% through June 1, 2026 and then the Prime Rate in effect as of June 1, 2026 plus 0.25% through May 21, 2031; provided that the second fixed interest rate will not be lower than 3.35% per annum. (9) Represents unamortized net mortgage premium acquired through the Merger. | As of December 31, 2020 and 2019, the Company’s mortgage notes payable consisted of the following: Collateral 2020 Principal Balance 2019 Principal Balance Contractual Interest Rate (1) Effective Interest Rate (1) Loan Maturity Accredo/Walgreens properties (8)(11) $ 8,538,000 $ 6,853,442 3.80 % 3.80 % 2025-08-01 Six Dollar General properties 3,747,520 3,819,264 4.69 % 4.69 % 2022-04-01 Dana property 4,466,865 4,551,250 4.56 % 4.56 % 2023-04-01 Northrop Grumman property 5,518,589 5,666,866 4.40 % 4.40 % 2022-07-02 exp US Services property 3,321,931 3,385,353 (3 ) 4.25 % 2024-11-17 Harley Davidson property (12) — 6,748,029 4.25 % 4.25 % 2024-09-01 Wyndham property (2) 5,607,000 5,716,200 One-month LIBOR + 2.05% 4.34 % 2027-06-05 Williams Sonoma property (2) 4,438,200 4,530,600 One-month LIBOR + 2.05% 4.34 % 2022-06-05 Omnicare property 4,193,171 4,273,552 4.36 % 4.36 % 2026-05-01 EMCOR property 2,811,539 2,862,484 4.35 % 4.35 % 2024-12-01 Husqvarna property 6,379,182 6,379,182 (4 ) 4.60 % 2028-02-20 AvAir property (9) 19,950,000 14,575,000 3.80 % 3.80 % 2025-08-01 3M property 8,166,000 8,290,000 One-month LIBOR + 2.25% 5.09 % 2023-03-29 Cummins property 8,332,200 8,458,600 One-month LIBOR + 2.25% 5.16 % 2023-04-04 Former 24 Hour Fitness property (5)(11) — 6,283,898 One-month LIBOR + 4.30% 4.64 % 2049-04-01 Texas Health property 4,363,203 4,400,000 4.00 % 4.00 % 2024-12-05 Bon Secours property 5,180,552 5,250,000 5.41 % 5.41 % 2026-09-15 Costco property 18,850,000 18,850,000 4.85 % 4.85 % 2030-01-01 Taylor Fresh Foods property 12,350,000 12,350,000 3.85 % 3.85 % 2029-11-01 Levins property (6)(13) 2,032,332 2,079,793 One-month LIBOR + 1.93% 3.74 % 2021-01-05 Island Pacific Supermarket property (6)(11) — 1,891,225 One-month LIBOR + 1.93% 3.74 % 2033-05-30 Dollar General Bakersfield property (6)(13) 2,268,922 2,324,338 One-month LIBOR + 1.48% 3.38 % 2021-03-05 Rite Aid property (6)(11) — 3,659,338 One-month LIBOR + 1.50% 3.25 % 2021-05-05 PMI Preclinical property (6)(13) 4,020,418 4,118,613 One-month LIBOR + 1.48% 3.38 % 2021-03-05 EcoThrift property (6)(12) — 2,639,237 One-month LIBOR + 1.21% 2.96 % 2021-07-05 GSA (MSHA) property (6)(13) 1,752,092 1,796,361 One-month LIBOR + 1.25% 3.13 % 2021-08-05 PreK Education property (6) 5,037,846 5,140,343 4.25 % 4.25 % 2021-12-01 Dinan Cars property (6)(7)(11) — 2,710,834 2.76 % 2.76 % 2022-01-05 Solar Turbines, Wood Group, ITW Rippey properties (6) 9,214,700 9,434,692 3.35 % 3.35 % 2026-11-01 Dollar General Big Spring property (6) 599,756 611,161 4.50 % 4.50 % 2022-04-01 Gap property (6) 3,569,990 3,643,166 4.15 % 4.15 % 2023-08-01 L-3 Communications property (6) 5,185,929 5,284,884 4.69 % 4.69 % 2022-04-01 Sutter Health property (6) 13,879,655 14,161,776 4.50 % 4.50 % 2024-03-09 Walgreens Santa Maria property (6)(10) 3,172,846 3,000,000 4.25 % 4.25 % 2030-07-16 Total mortgage notes payable 176,948,438 195,739,481 Plus: unamortized mortgage premium, net (14) 447,471 489,664 Less: unamortized deferred financing costs (1,469,991 ) (2,189,938 ) Mortgage notes payable, net $ 175,925,918 $ 194,039,207 (1) Contractual interest rate represents the interest rate in effect under the mortgage note payable as of December 31, 2020. Effective interest rate is calculated as the actual interest rate in effect as of December 31, 2020, consisting of the contractual interest rate and the effect of the interest rate swap, if applicable (see Note 8 for further information regarding the Company’s derivative instruments). (2) The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The notes are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the notes is an event of default under the terms of both notes. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the notes so that the loan to value ratio is no more than 60%. (3) The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate is the U.S. Treasury Bill index rate plus 3.25%. (4) The initial contractual interest rate is 4.60% through February 20, 2023 and then the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% through February 20, 2028. (5) The interest rate adjusts in the 133rd, 253rd and 313th months. As discussed in Note 4, during the three months ended March 31, 2020, the Company recorded an impairment charge of $5,664,517 related to its investment in the 24 Hour Fitness property in Las Vegas, Nevada due to the substantial impact on fitness centers from the COVID-19 pandemic and the requirement of an indefinite and potentially extended period of store closures and the resulting inability of the tenant to make rent payments. On April 1, 2020, the Company’s special purpose subsidiary initiated negotiations with the lender on the 24 Hour Fitness property regarding the special purpose subsidiary's request for a deferral of mortgage payments until the tenant resumes paying rent. The lender on this property did not agree to provide any substantial mortgage relief to the Company's special purpose subsidiary, but rather agreed to temporarily reduce its $32,000 monthly mortgage payment by $8,000 for four monthly payments from May 2020 through August 2020. On June 15, 2020, the Company received written notice that the lease was formally rejected in connection with 24 Hour Fitness' Chapter 11 bankruptcy proceeding and the premises were surrendered to the Company's subsidiary. The 24 Hour Fitness property was sold on December 15, 2020 as described in Note 4. (6) The loan was acquired through the Merger on December 31, 2019. (7) The Company negotiated a lease termination with Dinan Cars effective January 31, 2020 in exchange for a termination payment from Dinan cars of $783,182 which was used to reduce the principal balance of this mortgage by $650,000 and establish a payment reserve with the remaining $133,182. In connection with the principal prepayment, the Company terminated the related swap agreement on February 4, 2020 at a cost of $47,000. See Note 8 for further discussion of the swap agreement termination and Note 4 for details on the sale of the property on October 28, 2020. (8) The mortgage note with principal balance of $6,853,442 as of December 31, 2019 with an interest rate of 3.95% was refinanced on August 10, 2020 with a new loan for $8,538,000 with an interest rate of 3.80%, secured only by the Accredo property and is scheduled to mature on August 1, 2025. In connection with this refinancing, the mortgage note balance for the Walgreens Stockbridge, Georgia property was fully repaid. (9) The mortgage note with original principal of $14,575,000 as of December 31, 2019 with an effective interest rate of 4.84% was refinanced on July 29, 2020 with a new loan for $19,950,000 with an interest rate of 3.80%, secured only by the AvAir property and which will mature on August 1, 2020. (10) The mortgage note of $3,000,000 as of December 31, 2019 with an interest rate of 7.50% was refinanced on July 22, 2020 for $3,217,500 with an interest rate of 4.25%, and is scheduled to mature on July 16, 2030. (11) The Rite Aid property was sold on August 3, 2020, the Walgreens property on August 27, 2020, the Island Pacific property on September 16, 2020, the Dinan Cars property on October 28, 2020 and the property formerly leased to 24 Hour Fitness was sold on December 15, 2020. (12) The December 31, 2020 principal amount is included in mortgage notes payable related to investments held for sale, net (see details below). (13) The mortgage note was refinanced on March 5, 2021 with a new note bearing an interest rate of 3.65% - 3.75%, with a five (14) Represents unamortized net mortgage premium acquired through the Merger. |
Mortgage Notes Payable | The following summarizes the face value, carrying amount and fair value of the Company’s mortgage notes payable (Level 3 measurement) as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Face Value Carrying Value Fair Value Face value Carrying Value Fair Value Mortgage notes payable $ 182,758,762 $ 181,576,606 $ 184,187,667 $ 176,948,438 $ 175,925,918 $ 177,573,106 The following table summarizes the Company's mortgage notes payable related to real estate investments held for sale as of June 30, 2021 and December 31, 2020: Collateral June 30, 2021 December 31, 2020 Dana Property $ 4,422,616 $ — Harley Davidson property — 6,623,346 EcoThrift property — 2,573,509 Total 4,422,616 9,196,855 Plus unamortized mortgage premium — 1,550 Less deferred financing costs (41,190 ) (109,967 ) Mortgage notes payable, net $ 4,381,426 $ 9,088,438 | |
Schedule of Line of Credit Facilities | The details of the Company's credit facilities as of June 30, 2021 and December 31, 2020 follow: June 30, 2021 December 31, 2020 Credit facility $ 3,000,000 $ 6,000,000 Less unamortized deferred financing costs (110,697 ) (21,724 ) Credit facility, net $ 2,889,303 $ 5,978,276 | Unsecured Credit Facility, Net The details of the Company's unsecured credit facility as of December 31, 2020 and 2019 follow: December 31, 2020 2019 Unsecured credit facility $ 6,000,000 $ 7,740,000 Less unamortized deferred financing costs (21,724 ) (90,139 ) Unsecured credit facility, net $ 5,978,276 $ 7,649,861 |
Maturities of Long-term Debt | The following summarizes the future principal repayments of the Company’s mortgage notes payable, unsecured credit facility and short-term notes payable as of June 30, 2021: Mortgage Notes Payable Credit Facility Total July through December 2021 $ 6,196,648 $ 3,000,000 $ 9,196,648 2022 11,171,882 — 11,171,882 2023 22,203,304 — 22,203,304 2024 31,562,644 — 31,562,644 2025 28,970,205 — 28,970,205 2026 26,484,106 — 26,484,106 Thereafter 56,169,973 — 56,169,973 Total principal 182,758,762 3,000,000 185,758,762 Plus unamortized mortgage premium, net of unamortized discount 390,426 — 390,426 Less deferred financing costs (1,572,582 ) (110,697 ) (1,683,279 ) Net principal $ 181,576,606 $ 2,889,303 $ 184,465,909 | The following summarizes the future principal repayments of the Company’s mortgage notes payable, unsecured credit facility and short-term notes payable as of December 31, 2020: Mortgage Notes Payable Credit Facility Total 2021 $ 17,091,541 $ 6,000,000 $ 23,091,541 2022 20,873,759 — 20,873,759 2023 25,642,649 — 25,642,649 2024 24,599,437 — 24,599,437 2025 30,781,473 — 30,781,473 Thereafter 57,959,579 — 57,959,579 Total principal 176,948,438 6,000,000 182,948,438 Plus: unamortized mortgage premium, net of discount 447,471 — 447,471 Less: deferred financing costs, net (1,469,991 ) (21,724 ) (1,491,715 ) Total $ 175,925,918 $ 5,978,276 $ 181,904,194 |
Interest Expense | The following is a reconciliation of the components of interest expense for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Mortgage notes payable: Interest expense $ 1,992,812 $ 2,129,678 $ 3,826,636 $ 4,300,183 Amortization of deferred financing costs 103,383 139,600 214,426 258,631 Prepayment penalties — — 23,900 47,000 (Gain) loss on interest rate swaps (1) (92,200 ) 70,985 (420,243 ) 1,395,697 Credit facilities: Interest expense 63,333 166,834 142,085 321,458 Amortization of deferred financing costs 22,139 42,876 43,863 75,336 Other 9,182 8,904 49,118 65,228 Total interest expense $ 2,098,649 $ 2,558,877 $ 3,879,785 $ 6,463,533 (1) Includes unrealized (gain) loss on interest rate swaps of $(90,600) and $7,785 for the three months ended June 30, 2021 and 2020, respectively, and $(517,719) and $1,292,752 for the six months ended June 30, 2021 and 2020, respectively (see Note 8 | The following is a reconciliation of the components of interest expense for the years ended December 31, 2020 and 2019: Years Ended December 31, 2020 2019 Mortgage notes payable: Interest expense $ 8,470,248 $ 5,698,606 Amortization of deferred financing costs 937,564 601,658 Loss on interest rate swaps (1) 1,172,781 843,174 Unsecured credit facility: Interest expense 527,047 190,130 Amortization of deferred financing costs 128,171 36,542 Other loan fees 224,936 12,500 Total interest expense $ 11,460,747 $ 7,382,610 (1) Includes unrealized loss on interest rate swaps of $770,898 and $820,496 for years ended December 31, 2020 and 2019, respectively (see Note 8). Accrued interest payable of $45,636 and $22,282 as of December 31, 2020 and 2019, respectively, represents the unsettled portion of the interest rate swaps for the period from origination of the interest rate swap through the respective balance sheet dates. |
INTEREST RATE SWAP DERIVATIVE_4
INTEREST RATE SWAP DERIVATIVES (Q2) (Tables) | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Derivative Instruments | The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of June 30, 2021 and December 31, 2020, respectively: June 30, 2021 December 31, 2020 Derivative Instruments Number of Instruments Notional Amount (i) Reference Rate (ii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Number of Instruments Notional Amount (i) Reference Rate (iii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Interest Rate Swap Derivatives (iv) 4 $ 26,291,600 One-month LIBOR + applicable spread/Fixed at 4.05%-5.16% 4.55 % 2.6 years 8 $ 36,617,164 One-month LIBOR + applicable spread/Fixed at 3.13%-5.16% 3.35 % 2.2 years • The notional amount of the Company’s swaps decreases each month to correspond to the outstanding principal balance on the related mortgage. The minimum notional amounts (outstanding principal balance at the maturity date) as of June 30, 2021 and December 31, 2020 were $24,935,999 and $34,989,063, respectively. • The reference rate was as of June 30, 2021. • The reference rate was as of December 31, 2020. • The Company terminated swap agreements related to the GSA and Eco-Thrift properties during the six months ended June 30, 2021 and terminated the swap agreement related to the Dinan Cars property mortgage loan during the six months ended June 30, 2020 at aggregate costs of $23,900 and $47,000, respectively (see Note 7 | The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of December 31, 2020 and 2019. December 31, 2020 December 31, 2019 Derivative Instruments Number of Instruments Notional Amount (i) Reference Rate (ii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Number of Instruments Notional Amount (i) Reference Rate (iii) Weighted Average Fixed Pay Rate Weighted Average Remaining Term Interest Rate Swap Derivatives 8 $ 36,617,164 One-month LIBOR + applicable spread/Fixed at 3.13%-5.16% 3.35 % 2.2 years 12 $ 48,215,139 One-month LIBOR + applicable spread/Fixed at 2.76%-5.16% 3.87 % 2.9 years (i) The notional amount of the Company’s swaps decreases each month to correspond to the outstanding principal balance on the related mortgage. The minimum notional amounts (outstanding principal balance at the maturity date) as of December 31, 2020 and 2019 were $34,989,063 and $45,514,229, respectively. (ii) The reference rate was as of December 31, 2020. (iii) The reference rate was as of December 31, 2019. | |
Statement of Financial Position | The following table sets forth the fair value of the Company’s derivative instruments (Level 2 measurement), as well as their classification in the consolidated balance sheets: December 31, 2020 December 31, 2019 Derivative Instrument Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Interest Rate Swaps Asset - Interest rate swap derivatives, at fair value (*) — $ — 5 $ 34,567 Interest Rate Swaps Liability - Interest rate swap derivatives, at fair value (*) 8 $ (1,743,889 ) 7 $ (1,021,724 ) (*) The fair value of the five interest rate swap derivative assets and three interest rate derivative liabilities assumed from the Merger was $34,567 and $(51,514), respectively, as of December 31, 2019. | The following table sets forth the fair value of the Company’s derivative instruments (Level 2 measurement), as well as their classification in the unaudited condensed consolidated balance sheets: June 30, 2021 December 31, 2020 Derivative Instrument Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Interest Rate Swaps Asset - Interest rate swap derivatives, at fair value — $ — — $ — Interest Rate Swaps Liability - Interest rate swap derivatives, at fair value 4 $ (1,240,336 ) 8 $ (1,743,889 ) |
RELATED PARTY TRANSACTIONS (Q_2
RELATED PARTY TRANSACTIONS (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions | The total fees incurred for board services and paid by the Company for the three and six months ended June 30, 2021 and 2020, is as follows: Three Months Ended June 30, Six Months Ended June 30, Board of Directors Compensation 2021 2020 2021 2020 Cash paid for services rendered $ 60,000 $ — $ 60,000 $ 31,250 Value of shares issued for services rendered 110,000 70,000 180,000 72,083 Total $ 170,000 $ 70,000 $ 240,000 $ 103,333 Number of shares issued for services rendered (*) 4,470 2,272 7,510 2,355 * Adjusted for the 1:3 reverse stock split for the three and six months ended June 30, 2020. | Summarized below are the related party costs incurred by the Company and related party receivable and payable as of December 31, 2019: Year Ended December 31, 2019 December 31, 2019 Incurred Receivable Payable Expensed: Asset management fees (1) $ 2,777,021 $ — $ — Reimbursable operating expense 528,000 — — Fees to affiliates 3,305,021 — — Property management fees* 224,922 — — Directors and officers insurance and other reimbursements ** 250,892 — — Expense reimbursements from Former Sponsor (2) (332,337 ) — — Capitalized: Acquisition fees 746,459 — — Financing coordination fees 107,500 — — Reimbursable organizational and offering expenses (3) 1,206,881 — — Other: Due from BRIX REIT (4) — 1,378 — Due from TIC — 954 — Notes due to Chairman of the Board — — $ 630,820 $ 2,332 $ 630,820 * Property management fees are classified within property expenses on the consolidated statements of operations. ** Directors and officers insurance and other reimbursements are classified within general and administrative expenses on the consolidated statements of operations. (1) To the extent the Former Advisor elected, in its sole discretion, to defer all or any portion of its monthly asset management fee, the Former Advisor was deemed to have waived, not deferred, that portion up to 0.025% of the total investment value of the Company’s assets. For the year ended December 31, 2019, the Former Advisor did not waive any of the asset management fees. In addition to amounts presented in this table, the Company also incurred asset management fees to the Former Advisor of $191,933 related to the TIC Interest during the year ended December 31, 2019, which amount was reflected as reductions of income recognized from investments in unconsolidated entities (see Note 5 (2) Includes payroll costs related to Company employees that answer questions from prospective stockholders. See “ Investor Relations Payroll Compensation Expense Reimbursements from Former Sponsor (3) Through the termination date on September 30, 2019, the Former Sponsor incurred $9,224,997 of organizational and offering costs on behalf of the Company. However, the Company was only obligated to reimburse the Former Sponsor for such organizational and offering expenses to the extent of 3% of gross offering proceeds. (4) The receivables represent incidental expenses advanced to BRIX REIT, which included unpaid asset management fees of $285,818 due from BRIX REIT, which were fully reserved and the Company agreed to waive in May 2020 given the impact of the COVID-19 pandemic on BRIX REIT. The Company’s portion of asset management fees paid to a subsidiary of the Company in 2020 and the Former Advisor in 2019 relating to the TIC Interest for the years ended December 31, 2020 and 2019 was as follows: Years Ended December 31, 2020 2019 Asset management fees $ 191,933 $ 191,907 The Company’s portion of Former Advisor fees paid relating to REIT I for the year ended December 31, 2019 was as follows: Year Ended December 31, 2019 Expensed: Asset management fees $ 34,968 Other 16,800 Total $ 51,768 |
OPERATING PARTNERSHIP UNITS (_2
OPERATING PARTNERSHIP UNITS (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Business Combinations [Abstract] | ||
Class M OP Units Conversion | In the event that the Class M OP Units are converted into Class C OP Units prior to December 31, 2023, such Class M OP Units shall be exchanged at the rate indicated below: Date of Exchange Early Conversion Rate From December 31, 2020 to December 30, 2021 50% of the Class M conversion ratio From December 31, 2021 to December 30, 2022 60% of the Class M conversion ratio From December 31, 2022 to December 30, 2023 70% of the Class M conversion ratio The Class M OP Units are eligible for an increase in the conversion ratio (conversion ratio enhancement) if the Company achieves both of the targets for AUM and AFFO in a given year as set forth below and as adjusted for the 1:3 reverse stock split: Hurdles AUM AFFO Class M Initial Conversion Ratio 1: 1.6667 Fiscal Year 2021 $ 0.860 $ 1.77 1: 1.9167 Fiscal Year 2022 $ 1.175 $ 1.95 1: 2.5000 Fiscal Year 2023 $ 1.551 $ 2.10 1: 3.0000 | In the event that the Class M OP Units are converted into Class C OP Units prior to December 31, 2023, such Class M OP Units shall be exchanged at the rate indicated below: Date of Exchange Early Conversion Rate From December 31, 2020 to December 30, 2021 50% of the Class M conversion ratio From December 31, 2021 to December 30, 2022 60% of the Class M conversion ratio From December 31, 2022 to December 30, 2023 70% of the Class M conversion ratio The Class M OP Units are eligible for an increase in the conversion ratio (conversion ratio enhancement) if the Company achieves both of the targets for assets under management (“AUM”) and adjusted funds from operations (“AFFO”) in a given year as set forth below and as adjusted for the 1: 3 Hurdles AUM AFFO Class M Initial Conversion Ratio 1: 1.6667 Fiscal Year 2021 $ 0.860 $ 1.77 1: 1.9167 Fiscal Year 2022 $ 1.175 $ 1.95 1: 2.5000 Fiscal Year 2023 $ 1.551 $ 2.10 1: 3.0000 |
BUSINESS AND ORGANIZATION (FY)
BUSINESS AND ORGANIZATION (FY) (Details) | Feb. 01, 2021USD ($)$ / sharesshares | Jan. 25, 2021 | Dec. 31, 2020USD ($)property$ / sharesshares | Dec. 31, 2019property$ / sharesshares | Aug. 11, 2017shares | Dec. 31, 2015$ / sharesshares | Jun. 24, 2015shares | Aug. 31, 2017shares | Jun. 30, 2021USD ($)property$ / sharesshares | Mar. 31, 2021lease | Dec. 31, 2020USD ($)property$ / sharesshares | Sep. 30, 2020property | Jun. 30, 2020USD ($)property | Jun. 30, 2021USD ($)property$ / sharesshares | Dec. 31, 2020USD ($)propertylease$ / sharesshares | Jun. 30, 2020USD ($)property | Dec. 31, 2015$ / sharesshares | Dec. 31, 2020USD ($)property$ / sharesshares | Dec. 31, 2019USD ($)property$ / sharesshares | Dec. 31, 2020USD ($)property$ / sharesshares | Dec. 30, 2019 | Dec. 30, 2019 | Dec. 31, 2020USD ($)property$ / sharesshares | Aug. 04, 2021$ / shares | Jul. 26, 2021$ / shares | May 05, 2021$ / shares | Mar. 25, 2021$ / shares | Feb. 25, 2021$ / shares | Jan. 31, 2021USD ($)$ / shares | Jan. 27, 2021USD ($)$ / shares | Jan. 22, 2021USD ($)$ / shares | Jun. 01, 2020$ / shares | May 20, 2020$ / shares | Feb. 01, 2020$ / shares | Dec. 23, 2019USD ($) | Jan. 14, 2019$ / shares | Jan. 19, 2018$ / shares | Jan. 18, 2018$ / shares | Dec. 31, 2016USD ($) | Jul. 19, 2016USD ($) | Jul. 15, 2015USD ($) | Jun. 23, 2015$ / shares |
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Issued common stock (in shares) | 450,000,000 | 450,000,000 | 450,000,000 | 450,000,000 | 450,000,000 | 450,000,000 | 450,000,000 | 450,000,000 | ||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||||||||||||||||||||||
Preferred stock (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||||||||||||||||||||
Reverse stock split, conversion ratio | 0.3333 | |||||||||||||||||||||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 21.01 | $ 30.48 | $ 26.05 | $ 21.01 | $ 26.05 | $ 21.01 | $ 21.01 | $ 30.48 | $ 21.01 | $ 21.01 | $ 24.61 | $ 23.03 | $ 21.01 | $ 21.01 | $ 30 | |||||||||||||||||||||||||||
Issuance of common stock in offerings | $ | $ 1,804,545 | $ 4,851,043 | $ 4,561,611 | $ 14,092,239 | $ 17,867,390 | $ 40,908,373 | ||||||||||||||||||||||||||||||||||||
Number of real estate properties | property | 36 | 38 | 36 | 38 | 36 | 36 | 36 | 36 | ||||||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Number of properties classified as real estate held for sale | property | 4 | 4 | (9) | |||||||||||||||||||||||||||||||||||||||
Number of real estate properties sold | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||
REIT I | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 14 | 20 | 14 | 14 | 14 | 14 | 14 | 20 | 14 | 14 | ||||||||||||||||||||||||||||||||
Tenant-in-common | Real Estate Investment | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Ownership (as a percent) | 72.70% | 72.70% | 72.70% | 72.70% | 72.70% | 72.70% | 72.70% | 72.70% | ||||||||||||||||||||||||||||||||||
DRP | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 30.48 | |||||||||||||||||||||||||||||||||||||||||
Share price (in usd per share) | $ / shares | $ 30.81 | $ 30.15 | $ 30 | |||||||||||||||||||||||||||||||||||||||
IPO | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ | $ 30,000,000 | |||||||||||||||||||||||||||||||||||||||||
Registered Offering | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ | $ 3,333,333 | |||||||||||||||||||||||||||||||||||||||||
Sponsor | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in offering (in shares) | 3,333.3 | 3,333.3 | ||||||||||||||||||||||||||||||||||||||||
Shares issued (in usd per share) | $ / shares | $ 30 | $ 30 | $ 30 | |||||||||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Number of real estate properties | property | 11 | 12 | 11 | 12 | 11 | 11 | 11 | 11 | ||||||||||||||||||||||||||||||||||
Number of properties classified as real estate held for sale | property | 4 | 3 | 3 | 2 | 3 | (8) | ||||||||||||||||||||||||||||||||||||
Number of real estate properties sold | lease | 3 | 4 | ||||||||||||||||||||||||||||||||||||||||
Retail | REIT I | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Number of real estate properties | property | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | ||||||||||||||||||||||||||||||||||
Office | REIT I | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||
Industrial | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Number of real estate properties | property | 11 | 12 | 11 | 12 | 11 | 11 | 11 | 11 | ||||||||||||||||||||||||||||||||||
Number of properties classified as real estate held for sale | property | 1 | (1) | ||||||||||||||||||||||||||||||||||||||||
Number of real estate properties sold | lease | 1 | |||||||||||||||||||||||||||||||||||||||||
Industrial | REIT I | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||
Land | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Number of real estate properties | property | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Reverse stock split, conversion ratio | 0.3333 | |||||||||||||||||||||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 23.03 | $ 26.05 | $ 24.61 | $ 23.03 | $ 21.01 | $ 23.03 | $ 21.01 | |||||||||||||||||||||||||||||||||||
Class R OP Units | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Reverse stock split, conversion ratio | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | 358,670 | 358,670 | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units outstanding (in shares) | 360,000 | |||||||||||||||||||||||||||||||||||||||||
Class R OP Units | Subsequent Event | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units outstanding (in shares) | 360,000 | |||||||||||||||||||||||||||||||||||||||||
Class M OP Units | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Reverse stock split, conversion ratio | 1.6667 | 1.6667 | 1 | |||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | 657,949.5 | 657,949.5 | ||||||||||||||||||||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 35.02 | $ 43.42 | $ 35.02 | $ 43.42 | $ 35.02 | $ 35.02 | $ 35.02 | $ 35.02 | ||||||||||||||||||||||||||||||||||
BrixInvest | Class M OP Units | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | 657,949.5 | 657,949.5 | ||||||||||||||||||||||||||||||||||||||||
Operating Partnership | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Ownership interest (as a percent) | 83.00% | 99.00% | ||||||||||||||||||||||||||||||||||||||||
Remaining ownership interest ( as a percent) | 1.00% | 1.00% | ||||||||||||||||||||||||||||||||||||||||
Operating Partnership | Subsequent Event | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Ownership interest (as a percent) | 83.00% | |||||||||||||||||||||||||||||||||||||||||
Operating Partnership | Subsequent Event | Daisho OP Holdings, LLC | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Remaining ownership interest ( as a percent) | 12.00% | |||||||||||||||||||||||||||||||||||||||||
Operating Partnership | Subsequent Event | Employees of Company | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Remaining ownership interest ( as a percent) | 5.00% | |||||||||||||||||||||||||||||||||||||||||
Daisho OP Holdings, LLC | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Ownership interest (as a percent) | 87.00% | |||||||||||||||||||||||||||||||||||||||||
Daisho OP Holdings, LLC | Class M OP Units | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Reverse stock split, conversion ratio | 1 | |||||||||||||||||||||||||||||||||||||||||
BrixInvest | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Ownership interest (as a percent) | 12.00% | |||||||||||||||||||||||||||||||||||||||||
Class S | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||||||||||||||||||||||||||
Common stock (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.003 | ||||||||||||||||||||||||||||||
Issuance of common stock in offering (in shares) | 33,333,333 | 33,333,333 | 63,711 | |||||||||||||||||||||||||||||||||||||||
Minimum share value | $ | $ 1,000 | $ 500 | $ 500 | $ 500 | $ 500 | $ 500 | $ 500 | |||||||||||||||||||||||||||||||||||
Class S | Registered Offering | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in offering (in shares) | 2,056 | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in offerings | $ | $ 1,932,065 | |||||||||||||||||||||||||||||||||||||||||
Class S | Subsequent Event | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Common stock (in usd per share) | $ / shares | $ 0.001 | $ 0.003 | ||||||||||||||||||||||||||||||||||||||||
Minimum share value | $ | $ 1,000 | $ 500 | ||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | ||||||||||||||||||||||||||||||||
Common stock (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.003 | ||||||||||||||||||||||||||||||
Reverse stock split, conversion ratio | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ | $ 800,000,000 | |||||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for less than two years | 98.00% | |||||||||||||||||||||||||||||||||||||||||
Percentage of NAV shares held for at least two years | 100.00% | |||||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for less than one year | 97.00% | 97.00% | 97.00% | 97.00% | 97.00% | 97.00% | ||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for one to two years | 98.00% | 98.00% | 98.00% | 98.00% | 98.00% | 98.00% | ||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for two to three years | 99.00% | 99.00% | 99.00% | 99.00% | 99.00% | 99.00% | ||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for at least three years | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||||||||||||||||||
Minimum share value | $ | $ 1,000 | $ 500 | $ 500 | $ 500 | $ 500 | $ 500 | $ 500 | $ 500 | $ 500 | |||||||||||||||||||||||||||||||||
Class C | REIT I | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in merger (in shares) | 2,680,740.5 | |||||||||||||||||||||||||||||||||||||||||
Class C | DRP | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ | 75,000,000 | |||||||||||||||||||||||||||||||||||||||||
Class C | Follow-on Offering | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ | $ 600,547,672 | $ 725,000,000 | ||||||||||||||||||||||||||||||||||||||||
Class C | Registered Offering | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in offering (in shares) | 6,627,934 | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in offerings | $ | $ 197,527,817 | |||||||||||||||||||||||||||||||||||||||||
Class C | Registered Offering | DRP | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in offering (in shares) | 790,479 | |||||||||||||||||||||||||||||||||||||||||
Class C | 2021 DRP Offering | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ | $ 100,000,000 | |||||||||||||||||||||||||||||||||||||||||
Class C | Sponsor | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in offering (in shares) | 6,666.7 | 3,580 | ||||||||||||||||||||||||||||||||||||||||
Class C | Subsequent Event | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Common stock (in usd per share) | $ / shares | $ 0.001 | $ 0.003 | ||||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for less than two years | 98.00% | |||||||||||||||||||||||||||||||||||||||||
Percentage of NAV shares held for at least two years | 100.00% | |||||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for less than one year | 97.00% | |||||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for one to two years | 98.00% | |||||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for two to three years | 99.00% | |||||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for at least three years | 100.00% | |||||||||||||||||||||||||||||||||||||||||
Minimum share value | $ | $ 1,000 | $ 500 | ||||||||||||||||||||||||||||||||||||||||
Class C | Subsequent Event | Follow-on Offering | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ | $ 600,547,672 | |||||||||||||||||||||||||||||||||||||||||
Class C | Subsequent Event | 2021 DRP Offering | ||||||||||||||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ | $ 100,000,000 |
SUMMARY OF SIGNIFICANT ACOUNT_6
SUMMARY OF SIGNIFICANT ACOUNTING POLICIES - Narrative (FY) (Details) | Feb. 01, 2021$ / shares | Jan. 31, 2021$ / shares | Dec. 31, 2020USD ($)Segments$ / sharesshares | Dec. 31, 2019USD ($)Segments$ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Jun. 30, 2020USD ($)property$ / shares | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($)property$ / shares | Dec. 31, 2020USD ($)$ / sharesshares | Sep. 30, 2019 | Dec. 31, 2020USD ($)property$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Aug. 04, 2021$ / shares | Jul. 26, 2021$ / shares | May 05, 2021$ / shares | Mar. 25, 2021$ / shares | Feb. 25, 2021$ / shares | Jan. 27, 2021$ / shares | Jan. 22, 2021$ / shares | Jun. 01, 2020$ / shares | May 20, 2020$ / shares | Feb. 01, 2020$ / shares | Jan. 14, 2019$ / shares | Jan. 19, 2018$ / shares | Jan. 18, 2018$ / shares |
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Stock split, conversion ratio | 0.3333 | |||||||||||||||||||||||||||
Rental income from tenant reimbursements | $ | $ 1,703,974 | $ 1,538,586 | $ 3,395,361 | $ 3,899,505 | $ 7,028,808 | $ 4,857,794 | ||||||||||||||||||||||
Advertising expense | $ | $ 0 | $ 607,787 | ||||||||||||||||||||||||||
Earnings (loss) per share (in usd per share) | $ (0.13) | $ (0.28) | $ (0.25) | $ (6.39) | ||||||||||||||||||||||||
Dividends (in usd per share) | $ 0.2625 | $ 0.4080 | $ 0.5250 | $ 0.9330 | $ 1.4600 | $ 2.1105 | ||||||||||||||||||||||
Restricted cash | $ | $ 129,118 | $ 113,362 | $ 2,508,471 | $ 129,118 | 113,362 | $ 2,508,471 | $ 129,118 | $ 129,118 | $ 113,362 | |||||||||||||||||||
Tenant reimbursements | $ | 60,598 | $ 98,329 | 189,136 | 60,598 | $ 98,329 | 189,136 | 60,598 | $ 60,598 | 98,329 | |||||||||||||||||||
Percentage of share in property owned | 72.70% | |||||||||||||||||||||||||||
Restricted cash to fund property tax | $ | 32,086 | 2,210,864 | 32,086 | 2,210,864 | 32,086 | $ 32,086 | ||||||||||||||||||||||
Impairment of real estate investment properties | $ | (400,999) | $ 761,100 | $ 349,457 | $ 9,157,068 | (400,999) | $ 9,506,525 | $ 10,267,625 | 0 | ||||||||||||||||||||
Number of impaired real estate properties | property | 1 | 4 | 6 | |||||||||||||||||||||||||
Goodwill impairment loss | $ | 33,267,143 | 0 | $ 33,267,143 | $ 0 | $ 33,267,143 | |||||||||||||||||||||||
Impairment of intangible assets (excluding goodwill) | $ | $ 1,305,260 | |||||||||||||||||||||||||||
Impairment of goodwill and intangible assets (Note 3) | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 34,572,403 | 34,572,403 | $ 0 | |||||||||||||||||||||
Related party fees incurred | $ | $ 0 | |||||||||||||||||||||||||||
Net asset value (in usd per share) | $ 21.01 | $ 30.48 | $ 26.05 | $ 21.01 | $ 30.48 | $ 26.05 | $ 21.01 | $ 21.01 | $ 30.48 | $ 24.61 | $ 23.03 | $ 21.01 | $ 21.01 | $ 30 | ||||||||||||||
Stock repurchase program, shares authorized (in shares) | shares | 1,482,188 | 1,482,188 | 1,482,188 | 1,482,188 | ||||||||||||||||||||||||
Number of reportable segments | Segments | 1 | 1 | ||||||||||||||||||||||||||
DRP | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Share price (in usd per share) | $ 30.81 | $ 30.15 | $ 30 | |||||||||||||||||||||||||
Net asset value (in usd per share) | $ 30.48 | |||||||||||||||||||||||||||
Class M OP Units | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Stock split, conversion ratio | 1.6667 | 1.6667 | 1 | |||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 657,949.5 | 657,949.5 | ||||||||||||||||||||||||||
Net asset value (in usd per share) | $ 35.02 | $ 43.42 | $ 35.02 | $ 43.42 | $ 35.02 | $ 35.02 | ||||||||||||||||||||||
Class P OP Units | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Stock split, conversion ratio | 1.6667 | |||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 56,029 | 56,029 | 56,029 | 56,029 | 56,029 | |||||||||||||||||||||||
Minimum | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Intangible assets, estimated useful lives | 3 years | 3 years | ||||||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Intangible assets, estimated useful lives | 5 years | 5 years | ||||||||||||||||||||||||||
Shares authorized to be repurchased per month (as a percent) | 2.00% | 2.00% | ||||||||||||||||||||||||||
Shares authorized to be repurchased per quarter (as a percent) | 5.00% | 5.00% | ||||||||||||||||||||||||||
Shares authorized to be repurchased per year (as a percent) | 20.00% | |||||||||||||||||||||||||||
Building | Minimum | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Estimated useful lives (in years) | 10 years | |||||||||||||||||||||||||||
Building | Maximum | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Estimated useful lives (in years) | 48 years | |||||||||||||||||||||||||||
Site Improvement | Maximum | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Estimated useful lives (in years) | 15 years | |||||||||||||||||||||||||||
Tenant Improvement | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Estimated useful lives (in years) | 15 years | |||||||||||||||||||||||||||
Tenant Improvement | Maximum | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Estimated useful lives (in years) | 15 years | |||||||||||||||||||||||||||
Lender Reserves | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Restricted cash to fund property tax | $ | $ 36,434 | $ 20,678 | $ 36,434 | $ 20,678 | $ 36,434 | $ 36,434 | $ 20,678 | |||||||||||||||||||||
Lease Agreements | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Restricted cash | $ | $ 92,684 | $ 92,684 | $ 2,400,000 | $ 92,684 | $ 92,684 | $ 2,400,000 | $ 92,684 | 92,684 | $ 92,684 | |||||||||||||||||||
BrixInvest | Class M OP Units | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 657,949.5 | 657,949.5 | 657,949.5 | |||||||||||||||||||||||||
BrixInvest | Class P OP Units | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 26,318 | 26,318 | 26,318 | |||||||||||||||||||||||||
Reimbursable organizational and offering expenses | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Related party fees incurred | $ | $ 1,206,881 | |||||||||||||||||||||||||||
Due from BRIX REIT | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Related party fees incurred | $ | $ 0 | $ 0 | ||||||||||||||||||||||||||
Sponsor | Reimbursable organizational and offering expenses | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Gross offering proceeds, percentage | 3.00% | |||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Stock split, conversion ratio | 1 | 1 | ||||||||||||||||||||||||||
Common stock (in usd per share) | $ 0.001 | $ 0.003 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||
Earnings (loss) per share (in usd per share) | (6.06) | (0.88) | ||||||||||||||||||||||||||
Dividends (in usd per share) | $ 1.46 | 2.11 | ||||||||||||||||||||||||||
Share repurchase program, minimum holding period | 6 months | 3 months | ||||||||||||||||||||||||||
Percentage of NAV, shares held for less than one year | 97.00% | 97.00% | 97.00% | 97.00% | ||||||||||||||||||||||||
Percentage of NAV, shares held for one to two years | 98.00% | 98.00% | 98.00% | 98.00% | ||||||||||||||||||||||||
Percentage of NAV, shares held for two to three years | 99.00% | 99.00% | 99.00% | 99.00% | ||||||||||||||||||||||||
Percentage of NAV, shares held for at least three years | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||||||
Percentage of NAV, shares held for less than two years | 98.00% | |||||||||||||||||||||||||||
Percentage of NAV shares held for at least two years | 100.00% | |||||||||||||||||||||||||||
Class S | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Common stock (in usd per share) | $ 0.001 | 0.003 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | 0.001 | |||||||||||||||||
Earnings (loss) per share (in usd per share) | (6.06) | $ (0.82) | ||||||||||||||||||||||||||
Dividends (in usd per share) | $ 2.11 | $ 1.46 | ||||||||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Stock split, conversion ratio | 0.3333 | |||||||||||||||||||||||||||
Net asset value (in usd per share) | $ 23.03 | $ 26.05 | $ 24.61 | $ 23.03 | $ 21.01 | $ 23.03 | $ 21.01 | |||||||||||||||||||||
Subsequent Event | Class C | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Common stock (in usd per share) | $ 0.001 | $ 0.003 | ||||||||||||||||||||||||||
Share repurchase program, minimum holding period | 6 months | 90 days | ||||||||||||||||||||||||||
Percentage of NAV, shares held for less than one year | 97.00% | |||||||||||||||||||||||||||
Percentage of NAV, shares held for one to two years | 98.00% | |||||||||||||||||||||||||||
Percentage of NAV, shares held for two to three years | 99.00% | |||||||||||||||||||||||||||
Percentage of NAV, shares held for at least three years | 100.00% | |||||||||||||||||||||||||||
Percentage of NAV, shares held for less than two years | 98.00% | |||||||||||||||||||||||||||
Percentage of NAV shares held for at least two years | 100.00% | |||||||||||||||||||||||||||
Subsequent Event | Class C | DRP | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Share repurchase program, minimum holding period | 6 months | 90 days | ||||||||||||||||||||||||||
Subsequent Event | Class S | ||||||||||||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||||||||||||
Common stock (in usd per share) | $ 0.001 | $ 0.003 |
SUMMARY OF SIGNIFICANT ACOUNT_7
SUMMARY OF SIGNIFICANT ACOUNTING POLICIES - Dividends Declared (FY) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||||||
Ordinary income (In USD Per Share) | $ 0 | $ 0.3825 | ||||
Non-taxable distribution (In USD Per Share) | 1.4600 | 1.7280 | ||||
Total (in usd per share) | $ 0.2625 | $ 0.4080 | $ 0.5250 | $ 0.9330 | $ 1.4600 | $ 2.1105 |
MERGER AND SELF-MANAGEMENT TR_3
MERGER AND SELF-MANAGEMENT TRANSACTION - Narrative (FY) (Details) | Feb. 01, 2021$ / shares | Dec. 31, 2015$ / sharesshares | Jun. 24, 2015shares | Jun. 30, 2021USD ($)property$ / sharesshares | Jun. 30, 2020USD ($)property | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)property$ / sharesshares | Jun. 30, 2020USD ($)property | Dec. 31, 2015$ / sharesshares | Dec. 31, 2020USD ($)property$ / shares | Dec. 31, 2020USD ($)property$ / shares | Dec. 31, 2019USD ($)property$ / sharesshares | Aug. 04, 2021$ / shares | Jul. 26, 2021$ / shares | May 05, 2021$ / shares | Mar. 25, 2021$ / shares | Feb. 25, 2021$ / shares | Jan. 27, 2021$ / shares | Jan. 22, 2021$ / shares | Jun. 01, 2020$ / shares | May 20, 2020$ / shares | Apr. 30, 2020 | Jan. 18, 2018$ / shares | Jun. 23, 2015$ / shares |
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Number of real estate properties acquired | property | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Stock split, conversion ratio | 0.3333 | |||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 26.05 | $ 26.05 | $ 21.01 | $ 21.01 | $ 30.48 | $ 24.61 | $ 23.03 | $ 21.01 | $ 21.01 | $ 30 | ||||||||||||||
Self-management transaction expense | $ 201,920 | $ 1,468,913 | ||||||||||||||||||||||
Decrease in estimated fair value of real estate properties, percentage | 14.00% | |||||||||||||||||||||||
Goodwill impairment loss | $ 33,267,143 | $ 0 | $ 33,267,143 | $ 0 | 33,267,143 | |||||||||||||||||||
Intangible assets amortization expense | $ 465,595 | $ 438,770 | 925,739 | 925,989 | $ 1,833,054 | $ 0 | ||||||||||||||||||
Impairment of intangible assets (excluding goodwill) | 1,305,260 | |||||||||||||||||||||||
2021 | 1,877,826 | 1,877,826 | ||||||||||||||||||||||
2022 | 787,228 | 787,228 | ||||||||||||||||||||||
2023 | $ 709,832 | $ 709,832 | ||||||||||||||||||||||
Class M OP Units | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Stock split, conversion ratio | 1.6667 | 1.6667 | 1 | |||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 43.42 | $ 43.42 | $ 35.02 | $ 35.02 | ||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 657,949.5 | 657,949.5 | ||||||||||||||||||||||
Class P OP Units | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Stock split, conversion ratio | 1.6667 | |||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 56,029 | 56,029 | 56,029 | |||||||||||||||||||||
Stock compensation expense | $ 88,783 | $ 88,784 | $ 177,567 | $ 177,567 | $ 355,133 | |||||||||||||||||||
BrixInvest | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Contribution of Class M OP Units and Class P OP Units | $ 50,603,000 | |||||||||||||||||||||||
Self-management transaction expense | 201,920 | 1,468,913 | ||||||||||||||||||||||
Intangible assets | $ 7,700,000 | |||||||||||||||||||||||
2021 | $ 1,840,576 | 1,840,576 | ||||||||||||||||||||||
2022 | 1,840,576 | 1,840,576 | ||||||||||||||||||||||
2023 | 749,978 | 749,978 | ||||||||||||||||||||||
2024 | 696,658 | 696,658 | ||||||||||||||||||||||
BrixInvest | Class M OP Units | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 657,949.5 | |||||||||||||||||||||||
BrixInvest | Class P OP Units | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 26,318 | |||||||||||||||||||||||
BrixInvest | Investor list, net | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Impairment of intangible assets (excluding goodwill) | $ 1,305,260 | 0 | ||||||||||||||||||||||
BrixInvest | Web services technology, domains and licenses | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Additional finite-lived intangible assets acquired | 566,102 | |||||||||||||||||||||||
Daisho OP Holdings, LLC | Class M OP Units | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Stock split, conversion ratio | 1 | |||||||||||||||||||||||
Daisho OP Holdings, LLC | BrixInvest | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Ownership interests distributed | 100.00% | |||||||||||||||||||||||
Operating Partnership | Class M OP Units and Class P OP Units | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Noncontrolling interest (as a percent) | 13.00% | |||||||||||||||||||||||
Messrs. Halfacre and Pacini | Class P OP Units | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 29,711 | |||||||||||||||||||||||
Other ownership interests, capital account | $ 976,618 | $ 976,618 | $ 1,154,186 | $ 1,154,186 | $ 1,509,319 | |||||||||||||||||||
Other ownership interests, amortization period | 51 months | 51 months | ||||||||||||||||||||||
Sponsor | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Issuance of common stock in offering (in shares) | shares | 3,333.3 | 3,333.3 | ||||||||||||||||||||||
Shares issued (in usd per share) | $ / shares | $ 30 | $ 30 | $ 30 | |||||||||||||||||||||
REIT I | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Ownership (as a percent) | 4.80% | |||||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Stock split, conversion ratio | 0.3333 | |||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 23.03 | $ 26.05 | $ 24.61 | $ 23.03 | $ 21.01 | $ 23.03 | $ 21.01 | |||||||||||||||||
Class C | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Stock split, conversion ratio | 1 | 1 | ||||||||||||||||||||||
Class C | Sponsor | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Issuance of common stock in offering (in shares) | shares | 6,666.7 | 3,580 | ||||||||||||||||||||||
REIT I | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Number of real estate properties acquired | property | 14 | 14 | 14 | 14 | 20 | |||||||||||||||||||
Number of real estate properties, subject to California law | property | 17 | |||||||||||||||||||||||
Percentage of assets acquired by value, subject to California law | 93.00% | |||||||||||||||||||||||
Contingent consideration paid | $ 0 | |||||||||||||||||||||||
Acquisition-related transaction costs | $ 3,044,480 | |||||||||||||||||||||||
REIT I | Class C | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Issuance of common stock in merger (in shares) | shares | 2,680,740.5 |
MERGER AND SELF-MANAGEMENT TR_4
MERGER AND SELF-MANAGEMENT TRANSACTION - REIT I Purchase Price Allocation (FY) (Details) - REIT I - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Assets: | ||
Real estate property, including above/below lease intangibles | $ 151,099,097 | |
Cash and cash equivalents | 1,612,331 | |
Tenant receivable | 310,169 | |
Prepaid expenses and other assets | 51,924 | |
Liabilities: | ||
Mortgage notes payable, net | (62,985,425) | |
Accounts payable and other liabilities | (2,243,156) | |
Net | 87,844,940 | |
Less: Cancellation of investment in REIT I (Note 5) | $ 0 | (3,091,489) |
Capitalized transaction-related costs | (3,044,480) | |
Net Assets Acquired | $ 0 | $ 81,708,971 |
MERGER AND SELF-MANAGEMENT TR_5
MERGER AND SELF-MANAGEMENT TRANSACTION - Class M OP Units Conversion (FY) (Details) $ / shares in Units, $ in Millions | Feb. 01, 2021 | Jun. 30, 2021USD ($)$ / shares | Dec. 31, 2020 | Dec. 31, 2019USD ($)$ / shares |
Conversion of Stock [Line Items] | ||||
Conversion ratio | 0.3333 | |||
Initial Conversion Ratio | ||||
Conversion of Stock [Line Items] | ||||
Conversion ratio | 0.6000 | 0.6000 | ||
Fiscal Year 2021 | ||||
Conversion of Stock [Line Items] | ||||
Early Conversion Rate | 0.50 | 0.50 | ||
AUM conversion threshold | $ | $ 860 | $ 860 | ||
AFFO conversion threshold (in usd per share) | $ / shares | $ 1.77 | $ 1.77 | ||
Conversion ratio | 0.5217 | 0.5217 | ||
Fiscal Year 2022 | ||||
Conversion of Stock [Line Items] | ||||
Early Conversion Rate | 0.60 | 0.60 | ||
AUM conversion threshold | $ | $ 1,175 | $ 1,175 | ||
AFFO conversion threshold (in usd per share) | $ / shares | $ 1.95 | $ 1.95 | ||
Conversion ratio | 0.4000 | 0.4000 | ||
Fiscal Year 2023 | ||||
Conversion of Stock [Line Items] | ||||
Early Conversion Rate | 0.70 | 0.70 | ||
AUM conversion threshold | $ | $ 1,551 | $ 1,551 | ||
AFFO conversion threshold (in usd per share) | $ / shares | $ 2.10 | $ 2.10 | ||
Conversion ratio | 0.3333 | 0.3333 |
MERGER AND SELF-MANAGEMENT TR_6
MERGER AND SELF-MANAGEMENT TRANSACTION - BrixInvest Purchase Price Allocation (FY) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | |
Liabilities: | |||
Goodwill, net | $ (50,588,000) | $ (17,320,857) | $ (17,320,857) |
BrixInvest | |||
Assets: | |||
Cash and cash equivalents | (204,176) | ||
Prepaid expenses and other assets | (305,212) | ||
Operating lease right-of-use asset | (2,386,877) | ||
Intangible assets | (7,700,000) | ||
Liabilities: | |||
Short-term notes payable | 4,800,000 | ||
Due to affiliates | 630,820 | ||
Bank line of credit | 800,000 | ||
Accounts payable and other liabilities | 2,070,968 | ||
Operating lease liability | 2,386,877 | ||
Net | 92,400 | ||
Add: Cancellation of investment in the Company | (107,400) | 0 | |
Less: Contribution of Class M OP Units and Class P OP Units | 50,603,000 | ||
Goodwill, net | $ (50,588,000) | $ 0 |
MERGER AND SELF-MANAGEMENT TR_7
MERGER AND SELF-MANAGEMENT TRANSACTION - Net Carrying Amount of Goodwill (FY) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Combinations [Abstract] | |||
Goodwill, net | $ 17,320,857 | $ 17,320,857 | $ 50,588,000 |
MERGER AND SELF-MANAGEMENT TR_8
MERGER AND SELF-MANAGEMENT TRANSACTION - Intangible Assets Acquired (FY) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 7,072,592 | $ 6,960,842 | |
Accumulated amortization | (2,758,793) | (1,833,054) | $ 0 |
Net amount | $ 4,313,799 | 5,127,788 | 7,700,000 |
BrixInvest | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 6,960,842 | 7,700,000 | |
Investor list, net | BrixInvest | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Useful Life | 5 years | ||
Cost | $ 3,494,740 | 4,800,000 | |
Web services technology, domains and licenses | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Useful Life | 3 years | ||
Cost | $ 3,577,852 | $ 3,466,102 | |
Web services technology, domains and licenses | BrixInvest | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Useful Life | 3 years | ||
Cost | $ 3,466,102 | $ 2,900,000 |
REAL ESTATE INVESTMENTS - Narra
REAL ESTATE INVESTMENTS - Narrative (FY) (Details) | Dec. 31, 2020USD ($)propertystate | Dec. 16, 2020USD ($) | Oct. 29, 2020USD ($) | Oct. 28, 2020USD ($) | Sep. 16, 2020USD ($) | Aug. 27, 2020USD ($) | Aug. 03, 2020USD ($) | Aug. 01, 2020USD ($) | Apr. 01, 2020USD ($) | Dec. 31, 2019USD ($)property | Jun. 30, 2021USD ($)propertystate | Mar. 31, 2021USD ($)lease | Dec. 31, 2020USD ($)propertystate | Sep. 30, 2020property | Jun. 30, 2020USD ($)property | Mar. 31, 2020USD ($)property | Apr. 30, 2020USD ($)lease | Jun. 30, 2021USD ($)propertystate | Dec. 31, 2020USD ($)propertyleasestate | Jun. 30, 2020USD ($)property | Dec. 31, 2020USD ($)propertystate | Dec. 31, 2019USD ($)property |
Real Estate [Line Items] | ||||||||||||||||||||||
Number of real estate properties | property | 36 | 38 | 36 | 38 | 36 | 36 | ||||||||||||||||
Number of states in which entity operates | state | 14 | 14 | 14 | 14 | 14 | 14 | ||||||||||||||||
Number of real estate properties acquired | property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Number of impaired real estate properties, vacant | property | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||
Impairment of real estate investment properties | $ (400,999) | $ 761,100 | $ 349,457 | $ 9,157,068 | $ (400,999) | $ 9,506,525 | $ 10,267,625 | $ 0 | ||||||||||||||
Impairment charge percentage | 2.50% | 2.50% | 0.10% | 2.20% | 2.50% | 0.10% | 2.50% | |||||||||||||||
Capitalized acquisition fees paid to Former Advisor | $ 5,459 | 5,459 | ||||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 31,096,403 | $ 31,096,403 | $ 31,096,403 | $ 31,096,403 | ||||||||||||||||||
Proceeds from sale of real estate investments | 0 | |||||||||||||||||||||
Lease termination fee | $ (1,350,000) | $ (1,039,648) | 0 | |||||||||||||||||||
Weighted average amortization period | 9 years 4 months 24 days | 9 years 4 months 24 days | ||||||||||||||||||||
Number of properties classified as real estate held for sale | property | 4 | 4 | (9) | |||||||||||||||||||
Number of real estate properties sold | 5 | 5 | ||||||||||||||||||||
REIT I | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Revenue of acquiree | 0 | |||||||||||||||||||||
24 Hour Fitness | Mortgage Notes Payable | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Monthly mortgage payment | $ 32,000 | |||||||||||||||||||||
Decrease in monthly mortgage payment | $ 8,000 | |||||||||||||||||||||
Taylor Fresh Foods | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Capitalized acquisition fees paid to Former Advisor | $ 741,000 | 741,000 | ||||||||||||||||||||
Revenue of acquiree | $ 548,362 | |||||||||||||||||||||
Dana | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Lease termination fee | $ (1,381,767) | |||||||||||||||||||||
Rent payments per month | $ 65,000 | |||||||||||||||||||||
Tenant-in-common | Real Estate Investment | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Ownership (as a percent) | 72.70% | 72.70% | 72.70% | 72.70% | 72.70% | 72.70% | ||||||||||||||||
REIT I | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Number of real estate properties acquired | property | 14 | 20 | 14 | 14 | 14 | 14 | 14 | 20 | ||||||||||||||
Retail | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Number of real estate properties | property | 11 | 12 | 11 | 12 | 11 | 11 | ||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 13,714,188 | |||||||||||||||||||||
Number of properties classified as real estate held for sale | property | 4 | 3 | 3 | 2 | 3 | (8) | ||||||||||||||||
Number of real estate properties sold | lease | 3 | 4 | ||||||||||||||||||||
Retail | 24 Hour Fitness | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Impairment of real estate investment properties | $ 0 | $ 5,664,517 | $ 5,664,517 | $ 5,664,517 | ||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 9,052,941 | |||||||||||||||||||||
Proceeds from sale of real estate investments | $ 1,324,383 | |||||||||||||||||||||
Retail | Rite Aid | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Impairment of real estate investment properties | $ 349,457 | 349,457 | ||||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 7,250,000 | $ 7,250,000 | $ 7,250,000 | $ 7,250,000 | 7,250,000 | |||||||||||||||||
Proceeds from sale of real estate investments | $ 3,299,016 | |||||||||||||||||||||
Retail | Walgreens Santa Maria and Stockbridge | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Aggregate payment of lease incentives | $ 990,000 | |||||||||||||||||||||
Number of operating leases with lease incentives | lease | 2 | |||||||||||||||||||||
Retail | Walgreens | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Operating leases extension | 10 years | |||||||||||||||||||||
Retail | Walgreens Stockbridge | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | 5,538,462 | $ 5,538,462 | 5,538,462 | 5,538,462 | 5,538,462 | |||||||||||||||||
Proceeds from sale of real estate investments | $ 5,296,356 | |||||||||||||||||||||
Operating leases extension | 10 years | |||||||||||||||||||||
Retail | Island Pacific Supermarket | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 3,155,000 | $ 3,155,000 | $ 3,155,000 | $ 3,155,000 | $ 3,155,000 | |||||||||||||||||
Proceeds from sale of real estate investments | $ 1,124,016 | |||||||||||||||||||||
Retail | Chevron Gas Station | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Number of properties classified as real estate held for sale | property | 2 | |||||||||||||||||||||
Retail | Dollar General, Castalia and Lakeside | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Number of properties with leases extension | property | 2 | |||||||||||||||||||||
Retail | REIT I | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Number of real estate properties acquired | property | 5 | 5 | ||||||||||||||||||||
Office | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Number of real estate properties | property | 14 | 14 | 14 | 14 | 14 | 14 | ||||||||||||||||
Office | REIT I | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Number of real estate properties acquired | property | 4 | 4 | ||||||||||||||||||||
Industrial | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Number of real estate properties | property | 11 | 12 | 11 | 12 | 11 | 11 | ||||||||||||||||
Number of properties classified as real estate held for sale | property | 1 | (1) | ||||||||||||||||||||
Number of real estate properties sold | lease | 1 | |||||||||||||||||||||
Industrial | Dana | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Impairment of real estate investment properties | $ 0 | 2,184,395 | $ 2,184,395 | |||||||||||||||||||
Industrial | Rite Aid | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Impairment of real estate investment properties | 349,457 | 349,457 | ||||||||||||||||||||
Industrial | Dinan Cars | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Impairment of real estate investment properties | $ 0 | $ 1,308,156 | 1,308,156 | |||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 6,100,000 | $ 6,100,000 | $ 6,100,000 | $ 6,100,000 | $ 6,100,000 | |||||||||||||||||
Proceeds from sale of real estate investments | $ 3,811,580 | |||||||||||||||||||||
Industrial | REIT I | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Number of real estate properties acquired | property | 5 | 5 | ||||||||||||||||||||
Land | ||||||||||||||||||||||
Real Estate [Line Items] | ||||||||||||||||||||||
Number of real estate properties | property | 1 | 1 | 1 | 1 |
REAL ESTATE INVESTMENTS - Sched
REAL ESTATE INVESTMENTS - Schedule of Real Estate Properties (FY) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Real Estate [Line Items] | |||
Land, Buildings and Improvements | $ 343,899,970 | $ 337,755,793 | |
Tenant origination and absorption costs | 23,570,335 | 23,792,057 | $ 27,266,610 |
Accumulated Depreciation and Amortization | (38,377,298) | (32,091,211) | (20,411,794) |
Total Investment in Real Estate Property, Net | 329,093,007 | 329,456,639 | $ 403,535,694 |
Office | Accredo Health | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 9,855,847 | 9,855,847 | |
Tenant origination and absorption costs | 1,269,350 | 1,269,351 | |
Accumulated Depreciation and Amortization | (2,444,918) | (2,221,380) | |
Total Investment in Real Estate Property, Net | 8,680,279 | 8,903,818 | |
Office | Northrop Grumman | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 12,382,991 | ||
Tenant origination and absorption costs | 1,341,199 | ||
Accumulated Depreciation and Amortization | (2,968,985) | ||
Total Investment in Real Estate Property, Net | 10,755,205 | ||
Office | exp US Services | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 6,056,668 | 6,056,668 | |
Tenant origination and absorption costs | 388,248 | 388,248 | |
Accumulated Depreciation and Amortization | (945,261) | (833,278) | |
Total Investment in Real Estate Property, Net | 5,499,655 | 5,611,638 | |
Office | Wyndham | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 10,406,483 | 10,406,483 | |
Tenant origination and absorption costs | 669,232 | 669,232 | |
Accumulated Depreciation and Amortization | (1,347,468) | (1,170,222) | |
Total Investment in Real Estate Property, Net | 9,728,247 | 9,905,493 | |
Office | Williams Sonoma | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 8,079,612 | 8,079,612 | |
Tenant origination and absorption costs | 550,486 | 550,486 | |
Accumulated Depreciation and Amortization | (1,214,232) | (1,058,455) | |
Total Investment in Real Estate Property, Net | 7,415,866 | 7,571,643 | |
Office | EMCOR | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 5,960,610 | 5,960,610 | |
Tenant origination and absorption costs | 463,488 | 463,488 | |
Accumulated Depreciation and Amortization | (693,863) | (604,163) | |
Total Investment in Real Estate Property, Net | 5,730,235 | 5,819,935 | |
Office | Cummins | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 14,465,491 | ||
Tenant origination and absorption costs | 1,536,998 | ||
Accumulated Depreciation and Amortization | (2,151,938) | ||
Total Investment in Real Estate Property, Net | 13,850,551 | ||
Office | Texas Health | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 6,976,703 | 6,976,703 | |
Tenant origination and absorption costs | 713,221 | 713,221 | |
Accumulated Depreciation and Amortization | (829,997) | (681,341) | |
Total Investment in Real Estate Property, Net | 6,859,927 | 7,008,583 | |
Office | Bon Secours | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 10,388,751 | 10,388,751 | |
Tenant origination and absorption costs | 800,356 | 800,356 | |
Accumulated Depreciation and Amortization | (1,204,744) | (978,335) | |
Total Investment in Real Estate Property, Net | 9,984,363 | 10,210,772 | |
Office | Costco | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 27,330,797 | 27,330,797 | |
Tenant origination and absorption costs | 2,765,136 | 2,765,136 | |
Accumulated Depreciation and Amortization | (3,305,667) | (2,654,329) | |
Total Investment in Real Estate Property, Net | 26,790,266 | 27,441,604 | |
Office | GSA (MSHA) | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 3,112,076 | 3,112,076 | |
Tenant origination and absorption costs | 243,307 | 243,307 | |
Accumulated Depreciation and Amortization | (207,772) | (138,515) | |
Total Investment in Real Estate Property, Net | 3,147,611 | 3,216,868 | |
Office | Solar Turbines | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 7,133,241 | 7,133,241 | |
Tenant origination and absorption costs | 284,026 | 284,026 | |
Accumulated Depreciation and Amortization | (507,486) | (338,232) | |
Total Investment in Real Estate Property, Net | 6,909,781 | 7,079,035 | |
Office | Gap | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 8,378,276 | 8,378,276 | |
Tenant origination and absorption costs | 360,377 | 360,377 | |
Accumulated Depreciation and Amortization | (718,960) | (479,306) | |
Total Investment in Real Estate Property, Net | 8,019,693 | 8,259,347 | |
Office | Sutter Health | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 29,555,055 | 29,555,055 | |
Tenant origination and absorption costs | 1,616,610 | 1,616,610 | |
Accumulated Depreciation and Amortization | (1,620,523) | (1,080,349) | |
Total Investment in Real Estate Property, Net | 29,551,142 | 30,091,316 | |
Retail | Dollar General, Litchfield | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,281,812 | ||
Tenant origination and absorption costs | 116,302 | ||
Accumulated Depreciation and Amortization | (166,006) | ||
Total Investment in Real Estate Property, Net | 1,232,108 | ||
Retail | Dollar General, Wilton | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,543,776 | ||
Tenant origination and absorption costs | 140,653 | ||
Accumulated Depreciation and Amortization | (212,451) | ||
Total Investment in Real Estate Property, Net | 1,471,978 | ||
Retail | Dollar General, Thompsontown | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,199,860 | ||
Tenant origination and absorption costs | 106,730 | ||
Accumulated Depreciation and Amortization | (159,501) | ||
Total Investment in Real Estate Property, Net | 1,147,089 | ||
Retail | Dollar General, Mt. Gilead | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,174,188 | ||
Tenant origination and absorption costs | 111,847 | ||
Accumulated Depreciation and Amortization | (152,925) | ||
Total Investment in Real Estate Property, Net | 1,133,110 | ||
Retail | Dollar General, Lakeside | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,112,872 | ||
Tenant origination and absorption costs | 100,857 | ||
Accumulated Depreciation and Amortization | (156,949) | ||
Total Investment in Real Estate Property, Net | 1,056,780 | ||
Retail | Dollar General, Castalia | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,102,086 | ||
Tenant origination and absorption costs | 86,408 | ||
Accumulated Depreciation and Amortization | (152,492) | ||
Total Investment in Real Estate Property, Net | 1,036,002 | ||
Retail | Dollar General, Bakersfield | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 4,899,714 | ||
Tenant origination and absorption costs | 261,630 | ||
Accumulated Depreciation and Amortization | (147,132) | ||
Total Investment in Real Estate Property, Net | 5,014,212 | ||
Retail | PreK Education | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 12,447,287 | ||
Tenant origination and absorption costs | 447,927 | ||
Accumulated Depreciation and Amortization | (599,428) | ||
Total Investment in Real Estate Property, Net | 12,295,786 | ||
Retail | Dollar Tree | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,320,367 | 1,320,367 | |
Tenant origination and absorption costs | 73,298 | 73,298 | |
Accumulated Depreciation and Amortization | (106,366) | (70,911) | |
Total Investment in Real Estate Property, Net | 1,287,299 | 1,322,754 | |
Retail | Dollar General, Big Spring | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,281,683 | 1,281,683 | |
Tenant origination and absorption costs | 76,351 | 76,351 | |
Accumulated Depreciation and Amortization | (76,453) | (50,969) | |
Total Investment in Real Estate Property, Net | 1,281,581 | 1,307,065 | |
Retail | Walgreens, Santa Maria | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 5,223,442 | ||
Tenant origination and absorption costs | 335,945 | ||
Accumulated Depreciation and Amortization | (132,961) | ||
Total Investment in Real Estate Property, Net | 5,426,426 | ||
Industrial | Dana | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 6,802,876 | ||
Tenant origination and absorption costs | 531,439 | ||
Accumulated Depreciation and Amortization | (1,835,800) | ||
Total Investment in Real Estate Property, Net | 5,498,515 | ||
Industrial | Omnicare | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 7,262,747 | 7,262,747 | |
Tenant origination and absorption costs | 281,442 | 281,442 | |
Accumulated Depreciation and Amortization | (954,774) | (832,474) | |
Total Investment in Real Estate Property, Net | 6,589,415 | 6,711,715 | |
Industrial | Husqvarna | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 11,840,200 | 11,840,200 | |
Tenant origination and absorption costs | 1,013,948 | 1,013,948 | |
Accumulated Depreciation and Amortization | (1,292,198) | (1,113,651) | |
Total Investment in Real Estate Property, Net | 11,561,950 | 11,740,497 | |
Industrial | AvAir | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 27,357,899 | 27,357,900 | |
Tenant origination and absorption costs | 0 | 0 | |
Accumulated Depreciation and Amortization | (2,458,171) | (2,111,134) | |
Total Investment in Real Estate Property, Net | 24,899,728 | 25,246,766 | |
Industrial | 3M | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 14,762,819 | ||
Tenant origination and absorption costs | 2,356,361 | ||
Accumulated Depreciation and Amortization | (3,476,588) | ||
Total Investment in Real Estate Property, Net | 13,642,592 | ||
Industrial | Taylor Fresh Foods | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 34,194,369 | 34,194,369 | |
Tenant origination and absorption costs | 2,894,017 | 2,894,017 | |
Accumulated Depreciation and Amortization | (2,257,859) | (1,597,022) | |
Total Investment in Real Estate Property, Net | 34,830,527 | 35,491,364 | |
Industrial | Levins | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 4,429,390 | 4,429,390 | |
Tenant origination and absorption costs | 221,927 | 221,927 | |
Accumulated Depreciation and Amortization | (330,913) | (220,609) | |
Total Investment in Real Estate Property, Net | 4,320,404 | 4,430,708 | |
Industrial | PMI Preclinical | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 9,672,174 | ||
Tenant origination and absorption costs | 408,225 | ||
Accumulated Depreciation and Amortization | (204,321) | ||
Total Investment in Real Estate Property, Net | 9,876,078 | ||
Industrial | Wood Group | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 9,731,220 | 9,731,220 | |
Tenant origination and absorption costs | 539,633 | 466,293 | |
Accumulated Depreciation and Amortization | (742,040) | (565,017) | |
Total Investment in Real Estate Property, Net | 9,528,813 | 9,632,496 | |
Industrial | ITW Rippey | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 7,071,143 | 7,071,143 | |
Tenant origination and absorption costs | 304,387 | 304,387 | |
Accumulated Depreciation and Amortization | (456,010) | (303,219) | |
Total Investment in Real Estate Property, Net | $ 6,919,520 | 7,072,311 | |
Industrial | L-3 Communications | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 11,631,857 | ||
Tenant origination and absorption costs | 454,035 | ||
Accumulated Depreciation and Amortization | (470,823) | ||
Total Investment in Real Estate Property, Net | 11,615,069 | ||
Land | Northrop Grumman Parcel | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 329,410 | ||
Tenant origination and absorption costs | 0 | ||
Accumulated Depreciation and Amortization | 0 | ||
Total Investment in Real Estate Property, Net | $ 329,410 |
REAL ESTATE INVESTMENTS - Real
REAL ESTATE INVESTMENTS - Real Estate Impairment Charges (FY) (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Real Estate [Line Items] | |||||||||
Impairment of real estate investment properties | $ (400,999) | $ 761,100 | $ 349,457 | $ 9,157,068 | $ (400,999) | $ 9,506,525 | $ 10,267,625 | $ 0 | |
Dana | Industrial | |||||||||
Real Estate [Line Items] | |||||||||
Impairment of real estate investment properties | 0 | 2,184,395 | 2,184,395 | ||||||
24 Hour Fitness | Retail | |||||||||
Real Estate [Line Items] | |||||||||
Impairment of real estate investment properties | 0 | $ 5,664,517 | 5,664,517 | 5,664,517 | |||||
Dinan Cars | Industrial | |||||||||
Real Estate [Line Items] | |||||||||
Impairment of real estate investment properties | 0 | 1,308,156 | 1,308,156 | ||||||
Rite Aid | Industrial | |||||||||
Real Estate [Line Items] | |||||||||
Impairment of real estate investment properties | 349,457 | $ 349,457 | |||||||
Rite Aid | Retail | |||||||||
Real Estate [Line Items] | |||||||||
Impairment of real estate investment properties | $ 349,457 | 349,457 | |||||||
Harley Davidson | Retail | |||||||||
Real Estate [Line Items] | |||||||||
Impairment of real estate investment properties | $ 632,233 | $ 400,999 | 632,233 | ||||||
Chevron Gas Station, San Jose | Retail | |||||||||
Real Estate [Line Items] | |||||||||
Impairment of real estate investment properties | $ 128,867 |
REAL ESTATE INVESTMENTS - Prope
REAL ESTATE INVESTMENTS - Property Acquisitions (FY) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Real Estate [Line Items] | |
Payments to acquire real estate | $ 176,660,507 |
Land | |
Real Estate [Line Items] | |
Payments to acquire real estate | 45,649,596 |
Land | Chevron Gas Station, San Jose | |
Real Estate [Line Items] | |
Payments to acquire real estate | 3,787,021 |
Land | Levins | |
Real Estate [Line Items] | |
Payments to acquire real estate | 1,404,863 |
Land | Chevron Gas Station, Roseville | |
Real Estate [Line Items] | |
Payments to acquire real estate | 2,636,663 |
Land | Island Pacific Supermarket | |
Real Estate [Line Items] | |
Payments to acquire real estate | 676,981 |
Land | Dollar General, Bakersfield | |
Real Estate [Line Items] | |
Payments to acquire real estate | 1,099,458 |
Land | Rite Aid | |
Real Estate [Line Items] | |
Payments to acquire real estate | 3,939,724 |
Land | PMI Preclinical | |
Real Estate [Line Items] | |
Payments to acquire real estate | 4,774,497 |
Land | EcoThrift | |
Real Estate [Line Items] | |
Payments to acquire real estate | 2,300,717 |
Land | GSA (MSHA) | |
Real Estate [Line Items] | |
Payments to acquire real estate | 399,062 |
Land | PreK San Antonio | |
Real Estate [Line Items] | |
Payments to acquire real estate | 963,044 |
Land | Dollar Tree | |
Real Estate [Line Items] | |
Payments to acquire real estate | 159,829 |
Land | Dinan Cars | |
Real Estate [Line Items] | |
Payments to acquire real estate | 2,453,420 |
Land | Solar Turbines | |
Real Estate [Line Items] | |
Payments to acquire real estate | 2,483,960 |
Land | Wood Group | |
Real Estate [Line Items] | |
Payments to acquire real estate | 3,461,256 |
Land | ITW Rippey | |
Real Estate [Line Items] | |
Payments to acquire real estate | 787,945 |
Land | Dollar General, Big Spring | |
Real Estate [Line Items] | |
Payments to acquire real estate | 103,838 |
Land | Gap | |
Real Estate [Line Items] | |
Payments to acquire real estate | 2,076,754 |
Land | L-3 Communications | |
Real Estate [Line Items] | |
Payments to acquire real estate | 3,552,878 |
Land | Sutter Health | |
Real Estate [Line Items] | |
Payments to acquire real estate | 2,443,240 |
Land | Walgreens | |
Real Estate [Line Items] | |
Payments to acquire real estate | 1,832,430 |
Land | Acquisitions, Excluding Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire real estate | 41,337,580 |
Land | Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire real estate | 4,312,016 |
Buildings and Improvements | |
Real Estate [Line Items] | |
Payments to acquire real estate | 133,340,311 |
Buildings and Improvements | Chevron Gas Station, San Jose | |
Real Estate [Line Items] | |
Payments to acquire real estate | 267,738 |
Buildings and Improvements | Levins | |
Real Estate [Line Items] | |
Payments to acquire real estate | 3,024,527 |
Buildings and Improvements | Chevron Gas Station, Roseville | |
Real Estate [Line Items] | |
Payments to acquire real estate | 1,011,908 |
Buildings and Improvements | Island Pacific Supermarket | |
Real Estate [Line Items] | |
Payments to acquire real estate | 1,883,330 |
Buildings and Improvements | Dollar General, Bakersfield | |
Real Estate [Line Items] | |
Payments to acquire real estate | 3,800,256 |
Buildings and Improvements | Rite Aid | |
Real Estate [Line Items] | |
Payments to acquire real estate | 2,902,365 |
Buildings and Improvements | PMI Preclinical | |
Real Estate [Line Items] | |
Payments to acquire real estate | 4,897,677 |
Buildings and Improvements | EcoThrift | |
Real Estate [Line Items] | |
Payments to acquire real estate | 3,249,509 |
Buildings and Improvements | GSA (MSHA) | |
Real Estate [Line Items] | |
Payments to acquire real estate | 2,713,014 |
Buildings and Improvements | PreK San Antonio | |
Real Estate [Line Items] | |
Payments to acquire real estate | 11,484,243 |
Buildings and Improvements | Dollar Tree | |
Real Estate [Line Items] | |
Payments to acquire real estate | 1,160,538 |
Buildings and Improvements | Dinan Cars | |
Real Estate [Line Items] | |
Payments to acquire real estate | 3,799,237 |
Buildings and Improvements | Solar Turbines | |
Real Estate [Line Items] | |
Payments to acquire real estate | 4,649,281 |
Buildings and Improvements | Wood Group | |
Real Estate [Line Items] | |
Payments to acquire real estate | 6,269,964 |
Buildings and Improvements | ITW Rippey | |
Real Estate [Line Items] | |
Payments to acquire real estate | 6,283,198 |
Buildings and Improvements | Dollar General, Big Spring | |
Real Estate [Line Items] | |
Payments to acquire real estate | 1,177,845 |
Buildings and Improvements | Gap | |
Real Estate [Line Items] | |
Payments to acquire real estate | 6,301,522 |
Buildings and Improvements | L-3 Communications | |
Real Estate [Line Items] | |
Payments to acquire real estate | 8,078,979 |
Buildings and Improvements | Sutter Health | |
Real Estate [Line Items] | |
Payments to acquire real estate | 27,111,815 |
Buildings and Improvements | Walgreens | |
Real Estate [Line Items] | |
Payments to acquire real estate | 3,391,012 |
Buildings and Improvements | Acquisitions, Excluding Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire real estate | 103,457,958 |
Buildings and Improvements | Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire real estate | 29,882,353 |
Tenant Origination and Absorption Costs | |
Real Estate [Line Items] | |
Payments to acquire real estate | 9,548,791 |
Tenant Origination and Absorption Costs | Chevron Gas Station, San Jose | |
Real Estate [Line Items] | |
Payments to acquire real estate | 145,577 |
Tenant Origination and Absorption Costs | Levins | |
Real Estate [Line Items] | |
Payments to acquire real estate | 221,927 |
Tenant Origination and Absorption Costs | Chevron Gas Station, Roseville | |
Real Estate [Line Items] | |
Payments to acquire real estate | 136,415 |
Tenant Origination and Absorption Costs | Island Pacific Supermarket | |
Real Estate [Line Items] | |
Payments to acquire real estate | 197,495 |
Tenant Origination and Absorption Costs | Dollar General, Bakersfield | |
Real Estate [Line Items] | |
Payments to acquire real estate | 261,630 |
Tenant Origination and Absorption Costs | Rite Aid | |
Real Estate [Line Items] | |
Payments to acquire real estate | 420,441 |
Tenant Origination and Absorption Costs | PMI Preclinical | |
Real Estate [Line Items] | |
Payments to acquire real estate | 408,225 |
Tenant Origination and Absorption Costs | EcoThrift | |
Real Estate [Line Items] | |
Payments to acquire real estate | 273,846 |
Tenant Origination and Absorption Costs | GSA (MSHA) | |
Real Estate [Line Items] | |
Payments to acquire real estate | 243,307 |
Tenant Origination and Absorption Costs | PreK San Antonio | |
Real Estate [Line Items] | |
Payments to acquire real estate | 447,927 |
Tenant Origination and Absorption Costs | Dollar Tree | |
Real Estate [Line Items] | |
Payments to acquire real estate | 73,298 |
Tenant Origination and Absorption Costs | Dinan Cars | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Tenant Origination and Absorption Costs | Solar Turbines | |
Real Estate [Line Items] | |
Payments to acquire real estate | 284,026 |
Tenant Origination and Absorption Costs | Wood Group | |
Real Estate [Line Items] | |
Payments to acquire real estate | 392,955 |
Tenant Origination and Absorption Costs | ITW Rippey | |
Real Estate [Line Items] | |
Payments to acquire real estate | 304,387 |
Tenant Origination and Absorption Costs | Dollar General, Big Spring | |
Real Estate [Line Items] | |
Payments to acquire real estate | 76,351 |
Tenant Origination and Absorption Costs | Gap | |
Real Estate [Line Items] | |
Payments to acquire real estate | 360,377 |
Tenant Origination and Absorption Costs | L-3 Communications | |
Real Estate [Line Items] | |
Payments to acquire real estate | 454,035 |
Tenant Origination and Absorption Costs | Sutter Health | |
Real Estate [Line Items] | |
Payments to acquire real estate | 1,616,610 |
Tenant Origination and Absorption Costs | Walgreens | |
Real Estate [Line Items] | |
Payments to acquire real estate | 335,945 |
Tenant Origination and Absorption Costs | Acquisitions, Excluding Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire real estate | 6,654,774 |
Tenant Origination and Absorption Costs | Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire real estate | 2,894,017 |
Above-Market Lease Intangibles | |
Real Estate [Line Items] | |
Payments to acquire real estate | 764,531 |
Above-Market Lease Intangibles | Chevron Gas Station, San Jose | |
Real Estate [Line Items] | |
Payments to acquire real estate | 41,739 |
Above-Market Lease Intangibles | Levins | |
Real Estate [Line Items] | |
Payments to acquire real estate | 26,469 |
Above-Market Lease Intangibles | Chevron Gas Station, Roseville | |
Real Estate [Line Items] | |
Payments to acquire real estate | 24,432 |
Above-Market Lease Intangibles | Island Pacific Supermarket | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | Dollar General, Bakersfield | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | Rite Aid | |
Real Estate [Line Items] | |
Payments to acquire real estate | 186,297 |
Above-Market Lease Intangibles | PMI Preclinical | |
Real Estate [Line Items] | |
Payments to acquire real estate | 115,036 |
Above-Market Lease Intangibles | EcoThrift | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | GSA (MSHA) | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | PreK San Antonio | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | Dollar Tree | |
Real Estate [Line Items] | |
Payments to acquire real estate | 10,180 |
Above-Market Lease Intangibles | Dinan Cars | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | Solar Turbines | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | Wood Group | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | ITW Rippey | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | Dollar General, Big Spring | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | Gap | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | L-3 Communications | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Above-Market Lease Intangibles | Sutter Health | |
Real Estate [Line Items] | |
Payments to acquire real estate | 87,549 |
Above-Market Lease Intangibles | Walgreens | |
Real Estate [Line Items] | |
Payments to acquire real estate | 272,829 |
Above-Market Lease Intangibles | Acquisitions, Excluding Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire real estate | 764,531 |
Above-Market Lease Intangibles | Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire real estate | 0 |
Below-Market Lease Intangibles | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (12,642,722) |
Below-Market Lease Intangibles | Chevron Gas Station, San Jose | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | 0 |
Below-Market Lease Intangibles | Levins | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | 0 |
Below-Market Lease Intangibles | Chevron Gas Station, Roseville | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | 0 |
Below-Market Lease Intangibles | Island Pacific Supermarket | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (76,351) |
Below-Market Lease Intangibles | Dollar General, Bakersfield | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (41,739) |
Below-Market Lease Intangibles | Rite Aid | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | 0 |
Below-Market Lease Intangibles | PMI Preclinical | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | 0 |
Below-Market Lease Intangibles | EcoThrift | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (388,882) |
Below-Market Lease Intangibles | GSA (MSHA) | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (101,802) |
Below-Market Lease Intangibles | PreK San Antonio | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (28,504) |
Below-Market Lease Intangibles | Dollar Tree | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | 0 |
Below-Market Lease Intangibles | Dinan Cars | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | 0 |
Below-Market Lease Intangibles | Solar Turbines | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (108,928) |
Below-Market Lease Intangibles | Wood Group | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | 0 |
Below-Market Lease Intangibles | ITW Rippey | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | 0 |
Below-Market Lease Intangibles | Dollar General, Big Spring | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (127,252) |
Below-Market Lease Intangibles | Gap | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (68,207) |
Below-Market Lease Intangibles | L-3 Communications | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (174,081) |
Below-Market Lease Intangibles | Sutter Health | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | 0 |
Below-Market Lease Intangibles | Walgreens | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | 0 |
Below-Market Lease Intangibles | Acquisitions, Excluding Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (1,115,746) |
Below-Market Lease Intangibles | Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire below market lease intangibles | (11,526,976) |
Total | |
Real Estate [Line Items] | |
Payments to acquire real estate | 176,660,507 |
Total | Chevron Gas Station, San Jose | |
Real Estate [Line Items] | |
Payments to acquire real estate | 4,242,075 |
Total | Levins | |
Real Estate [Line Items] | |
Payments to acquire real estate | 4,677,786 |
Total | Chevron Gas Station, Roseville | |
Real Estate [Line Items] | |
Payments to acquire real estate | 3,809,418 |
Total | Island Pacific Supermarket | |
Real Estate [Line Items] | |
Payments to acquire real estate | 2,681,455 |
Total | Dollar General, Bakersfield | |
Real Estate [Line Items] | |
Payments to acquire real estate | 5,119,605 |
Total | Rite Aid | |
Real Estate [Line Items] | |
Payments to acquire real estate | 7,448,827 |
Total | PMI Preclinical | |
Real Estate [Line Items] | |
Payments to acquire real estate | 10,195,435 |
Total | EcoThrift | |
Real Estate [Line Items] | |
Payments to acquire real estate | 5,435,190 |
Total | GSA (MSHA) | |
Real Estate [Line Items] | |
Payments to acquire real estate | 3,253,581 |
Total | PreK San Antonio | |
Real Estate [Line Items] | |
Payments to acquire real estate | 12,866,710 |
Total | Dollar Tree | |
Real Estate [Line Items] | |
Payments to acquire real estate | 1,403,845 |
Total | Dinan Cars | |
Real Estate [Line Items] | |
Payments to acquire real estate | 6,252,657 |
Total | Solar Turbines | |
Real Estate [Line Items] | |
Payments to acquire real estate | 7,308,339 |
Total | Wood Group | |
Real Estate [Line Items] | |
Payments to acquire real estate | 10,124,175 |
Total | ITW Rippey | |
Real Estate [Line Items] | |
Payments to acquire real estate | 7,375,530 |
Total | Dollar General, Big Spring | |
Real Estate [Line Items] | |
Payments to acquire real estate | 1,230,782 |
Total | Gap | |
Real Estate [Line Items] | |
Payments to acquire real estate | 8,670,446 |
Total | L-3 Communications | |
Real Estate [Line Items] | |
Payments to acquire real estate | 11,911,811 |
Total | Sutter Health | |
Real Estate [Line Items] | |
Payments to acquire real estate | 31,259,214 |
Total | Walgreens | |
Real Estate [Line Items] | |
Payments to acquire real estate | 5,832,216 |
Total | Acquisitions, Excluding Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire real estate | 151,099,097 |
Total | Taylor Fresh Foods | |
Real Estate [Line Items] | |
Payments to acquire real estate | $ 25,561,410 |
REAL ESTATE INVESTMENTS - Pro_2
REAL ESTATE INVESTMENTS - Property Purchase Price (FY) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Purchase price and other acquisition costs | $ 176,660,507 |
Purchase deposit applied | (2,000,000) |
Acquisition fees to affiliate related to Taylor Fresh Foods | (741,000) |
Acquisition of real estate before financing | $ 173,919,507 |
REAL ESTATE INVESTMENTS - Capit
REAL ESTATE INVESTMENTS - Capitalized Acquisition Fees (FY) (Details) | Dec. 31, 2019USD ($) |
Real Estate [Line Items] | |
Amount | $ 5,459 |
Taylor Fresh Foods | |
Real Estate [Line Items] | |
Amount | $ 741,000 |
REAL ESTATE INVESTMENTS - Dispo
REAL ESTATE INVESTMENTS - Dispositions (FY) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2021USD ($)ft² | Mar. 31, 2021USD ($)ft² | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)ft² | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)ft² | Dec. 31, 2019USD ($) | Oct. 28, 2020USD ($) | Sep. 16, 2020USD ($) | Aug. 27, 2020USD ($) | Aug. 03, 2020USD ($) | |
Real Estate [Line Items] | |||||||||||
Rentable Square Feet | ft² | 2,300,000 | 2,300,000 | 118,651 | ||||||||
Contract Sale Price | $ 31,096,403 | ||||||||||
Gain (Loss) on Sale | $ 0 | $ 0 | $ 289,642 | $ 0 | $ 4,139,749 | $ 0 | |||||
Retail | |||||||||||
Real Estate [Line Items] | |||||||||||
Rentable Square Feet | ft² | 42,896 | ||||||||||
Contract Sale Price | $ 13,714,188 | ||||||||||
Gain (Loss) on Sale | $ 289,642 | ||||||||||
Retail | Rite Aid | |||||||||||
Real Estate [Line Items] | |||||||||||
Rentable Square Feet | ft² | 17,272 | ||||||||||
Contract Sale Price | $ 7,250,000 | $ 7,250,000 | |||||||||
Gain (Loss) on Sale | $ (422) | ||||||||||
Retail | Walgreens Stockbridge | |||||||||||
Real Estate [Line Items] | |||||||||||
Rentable Square Feet | ft² | 15,120 | ||||||||||
Contract Sale Price | $ 5,538,462 | $ 5,538,462 | |||||||||
Gain (Loss) on Sale | $ 1,306,768 | ||||||||||
Retail | Island Pacific Supermarket | |||||||||||
Real Estate [Line Items] | |||||||||||
Rentable Square Feet | ft² | 13,963 | ||||||||||
Contract Sale Price | $ 3,155,000 | $ 3,155,000 | |||||||||
Gain (Loss) on Sale | $ 387,296 | ||||||||||
Retail | 24 Hour Fitness | |||||||||||
Real Estate [Line Items] | |||||||||||
Rentable Square Feet | ft² | 45,000 | ||||||||||
Contract Sale Price | $ 9,052,941 | ||||||||||
Gain (Loss) on Sale | $ 1,484,271 | ||||||||||
Industrial | Dinan Cars | |||||||||||
Real Estate [Line Items] | |||||||||||
Rentable Square Feet | ft² | 27,296 | ||||||||||
Contract Sale Price | $ 6,100,000 | $ 6,100,000 | |||||||||
Gain (Loss) on Sale | $ 961,836 |
REAL ESTATE INVESTMENTS - Reven
REAL ESTATE INVESTMENTS - Revenue Concentration (FY) (Details) - AvAir, AZ - Revenue Benchmark | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Real Estate [Line Items] | |
Revenue | $ 2,670,159 |
Tenants Concentration Risk [Member] | |
Real Estate [Line Items] | |
Percentage of Total Revenue | 10.90% |
REAL ESTATE INVESTMENTS - Futur
REAL ESTATE INVESTMENTS - Future Minimum Contractual Rent Payments Due under Noncancelable Operating Leases (FY) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||
2021 | $ 25,533,893 | $ 26,761,843 |
2022 | 22,070,671 | 24,418,710 |
2023 | 21,588,111 | 20,157,378 |
2024 | 18,369,437 | 19,674,819 |
2025 | 11,524,427 | 16,456,145 |
Thereafter | 42,329,568 | 43,827,967 |
Total | $ 154,635,652 | $ 151,296,862 |
REAL ESTATE INVESTMENTS - Finit
REAL ESTATE INVESTMENTS - Finite-Lived Intangible Assets (FY) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | $ 7,072,592 | $ 6,960,842 | |
Accumulated amortization | (2,758,793) | (1,833,054) | $ 0 |
Net amount | 4,313,799 | 5,127,788 | 7,700,000 |
Tenant Origination and Absorption Costs | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 23,570,335 | 23,792,057 | 27,266,610 |
Accumulated amortization | (11,210,646) | (9,695,960) | (6,005,248) |
Net amount | 12,359,689 | 14,096,097 | 21,261,362 |
Above-Market Lease Intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 1,128,549 | 1,128,549 | 1,547,646 |
Accumulated amortization | (372,620) | (307,707) | (295,912) |
Net amount | 755,929 | 820,842 | 1,251,734 |
Below-Market Lease Intangibles | |||
Below Market Lease, Net [Abstract] | |||
Cost | (15,097,132) | (15,163,672) | (15,713,975) |
Accumulated amortization | 3,266,545 | 2,597,935 | 1,122,616 |
Net amount | $ (11,830,587) | $ (12,565,737) | $ (14,591,359) |
REAL ESTATE INVESTMENTS - Fin_2
REAL ESTATE INVESTMENTS - Finite-Lived Intangible Assets, Future Amortization (FY) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Real Estate [Line Items] | |||
2021 | $ 1,877,826 | ||
2022 | 787,228 | ||
2023 | 709,832 | ||
Net amount | $ 4,313,799 | $ 5,127,788 | $ 7,700,000 |
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity [Abstract] | |||
Weighted-Average Remaining Amortization Period | 9 years 4 months 24 days | 9 years 4 months 24 days | |
Tenant Origination and Absorption Costs | |||
Real Estate [Line Items] | |||
2021 | $ 2,682,533 | $ 3,801,383 | |
2022 | 1,805,532 | 2,628,700 | |
2023 | 1,689,428 | 1,751,653 | |
2024 | 1,311,545 | 1,625,159 | |
2025 | 601,734 | 1,242,973 | |
Thereafter | 2,659,530 | 3,046,229 | |
Net amount | $ 12,359,689 | $ 14,096,097 | 21,261,362 |
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity [Abstract] | |||
Weighted-Average Remaining Amortization Period | 7 years 1 month 6 days | 7 years 1 month 6 days | |
Above-Market Lease Intangibles | |||
Real Estate [Line Items] | |||
2021 | $ 129,823 | $ 129,823 | |
2022 | 127,174 | 129,823 | |
2023 | 122,543 | 127,174 | |
2024 | 115,996 | 122,543 | |
2025 | 78,557 | 115,995 | |
Thereafter | 116,927 | 195,484 | |
Net amount | $ 755,929 | $ 820,842 | 1,251,734 |
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity [Abstract] | |||
Weighted-Average Remaining Amortization Period | 6 years 9 months 18 days | 7 years 2 months 12 days | |
Below-Market Lease Intangibles | |||
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity [Abstract] | |||
2021 | $ (1,217,029) | $ (1,462,730) | |
2022 | (921,169) | (1,217,076) | |
2023 | (917,750) | (921,169) | |
2024 | (917,750) | (917,750) | |
2025 | (912,347) | (917,750) | |
Thereafter | (6,216,928) | (7,129,262) | |
Net amount | $ (11,830,587) | $ (12,565,737) | $ (14,591,359) |
Weighted-Average Remaining Amortization Period | 11 years 10 months 24 days | 12 years 2 months 12 days |
REAL ESTATE INVESTMENTS - Rea_2
REAL ESTATE INVESTMENTS - Real Estate Investments Held for Sale (FY) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets related to real estate investments held for sale: | ||||||
Real estate investments held for sale, net | $ 5,375,746 | $ 5,375,746 | $ 24,585,739 | $ 0 | ||
Other assets, net | 671,265 | 671,265 | 1,079,361 | 0 | ||
Liabilities related to real estate investments held for sale: | ||||||
Mortgage notes payable related to real estate investments held for sale, net | 4,381,426 | 4,381,426 | 9,088,438 | 0 | ||
Other liabilities, net | 227,433 | 227,433 | 801,337 | 0 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Assets related to real estate investments held for sale: | ||||||
Land, buildings and improvements | 6,802,876 | 6,802,876 | 25,675,459 | |||
Tenant origination and absorption costs | 531,439 | 531,439 | 554,788 | |||
Accumulated depreciation and amortization | (1,958,569) | (1,958,569) | (1,644,508) | |||
Real estate investments held for sale, net | 5,375,746 | 5,375,746 | 24,585,739 | |||
Other assets, net | 671,265 | 671,265 | 1,079,361 | |||
Total assets related to real estate investments held for sale: | 6,047,011 | 6,047,011 | 25,665,100 | |||
Liabilities related to real estate investments held for sale: | ||||||
Mortgage notes payable related to real estate investments held for sale, net | 4,381,426 | 4,381,426 | 9,088,438 | |||
Other liabilities, net | 227,433 | 227,433 | 801,337 | |||
Total liabilities related to real estate investments held for sale: | 4,608,859 | 4,608,859 | 9,889,775 | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||
Total revenues | 342,198 | $ 312,060 | 716,160 | $ 1,480,909 | 2,326,058 | 1,325,265 |
Interest expense | 63,207 | 83,658 | 138,629 | 221,022 | 552,246 | 323,460 |
Depreciation and amortization | 49,108 | 185,658 | 122,769 | 375,575 | 737,278 | 344,708 |
Other expenses | 78,857 | 101,131 | 145,797 | 221,811 | 352,280 | 385,282 |
Impairment of real estate properties | 761,100 | 0 | ||||
Total expenses | 191,172 | 719,904 | 407,195 | 2,476,021 | 2,402,904 | 1,053,450 |
Net income (loss) | $ 151,026 | $ (407,844) | $ 308,965 | $ (995,112) | $ (76,846) | $ 271,815 |
INVESTMENT IN UNCONSOLIDATED _5
INVESTMENT IN UNCONSOLIDATED ENTITY - Equity Method Investments (FY) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Investments in unconsolidated entities | $ 10,002,368 | $ 10,388,588 |
INVESTMENT IN UNCONSOLIDATED _6
INVESTMENT IN UNCONSOLIDATED ENTITY - Entities Equity In Earnings (FY) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Income from investments in unconsolidated entities | $ 74,834 | $ 125,658 | $ 147,302 | $ 146,411 | $ 296,780 | $ 234,048 |
The TIC Interest | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Income from investments in unconsolidated entities | $ 74,834 | $ 125,658 | $ 147,302 | $ 146,411 | 296,780 | 296,691 |
REIT I | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Income from investments in unconsolidated entities | $ 0 | $ (62,643) |
INVESTMENT IN UNCONSOLIDATED _7
INVESTMENT IN UNCONSOLIDATED ENTITY - Narrative (FY) (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 28, 2017lease | |
The TIC Interest | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership (as a percent) | 72.70% | ||
Proceeds from distributions | $ 683,000 | $ 657,435 | |
REIT I | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership (as a percent) | 4.80% | ||
Proceeds from distributions | $ 372,351 | ||
Santa Clara | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of operating leases with renewal options | lease | 3 | ||
Operating leases renewal term | 5 years | ||
The TIC Interest | Hagg Lane II, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership Percentage by Noncontrolling Owners (as a percent) | 23.40% | ||
The TIC Interest | Hagg Lane III, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership Percentage by Noncontrolling Owners (as a percent) | 3.90% | ||
Santa Clara | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership Percentage by Noncontrolling Owners (as a percent) | 27.30% |
INVESTMENT IN UNCONSOLIDATED _8
INVESTMENT IN UNCONSOLIDATED ENTITY - Summarized Financial Information (FY) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Assets | |||||||||
Real estate investments, net | $ 329,093,007 | $ 329,093,007 | $ 329,456,639 | $ 403,535,694 | |||||
Cash and cash equivalents | 7,865,974 | 7,865,974 | 8,248,412 | 6,823,568 | |||||
Total assets | 389,555,298 | 389,555,298 | 407,433,014 | 490,917,263 | |||||
Liabilities: | |||||||||
Mortgage notes payable, net | 181,576,606 | 181,576,606 | 175,925,918 | 194,039,207 | |||||
Below-market lease intangibles, net | 11,830,587 | 11,830,587 | 12,565,737 | 14,591,359 | |||||
Total liabilities | 211,100,320 | 211,100,320 | 217,180,778 | 236,675,009 | |||||
Total equity | 168,041,287 | $ 189,662,529 | 168,041,287 | $ 189,662,529 | 182,886,668 | 240,172,562 | $ 172,146,694 | $ 191,294,801 | $ 103,092,769 |
Total liabilities and equity | 389,555,298 | 389,555,298 | 407,433,014 | 490,917,263 | |||||
Expenses: | |||||||||
Depreciation and amortization | 3,978,323 | 4,480,262 | 8,003,026 | 9,115,786 | 17,592,253 | 9,848,130 | |||
Interest expense | 2,098,649 | 2,558,877 | 3,879,785 | 6,463,533 | 11,460,747 | 7,382,610 | |||
Total expenses | 10,249,728 | 11,608,338 | 21,093,398 | 71,511,003 | 91,493,320 | 29,593,905 | |||
Other income: | |||||||||
Gain on real estate investments, net | 0 | 0 | 289,642 | 0 | 4,139,749 | 0 | |||
Net loss | $ (1,001,843) | $ (2,209,910) | $ (1,905,491) | $ (51,033,196) | (49,141,910) | (4,415,992) | |||
The TIC Interest | |||||||||
Assets | |||||||||
Real estate investments, net | 29,906,146 | 30,858,240 | |||||||
Cash and cash equivalents | 380,774 | 275,760 | |||||||
Other assets | 164,684 | 228,770 | |||||||
Total assets | 30,451,604 | 31,362,770 | |||||||
Liabilities: | |||||||||
Mortgage notes payable, net | 13,489,126 | 13,746,635 | |||||||
Below-market lease intangibles, net | 2,806,973 | 2,953,360 | |||||||
Other liabilities | 92,777 | 68,587 | |||||||
Total liabilities | 16,388,876 | 16,768,582 | |||||||
Total equity | 14,062,728 | 14,594,188 | |||||||
Total liabilities and equity | 30,451,604 | 31,362,770 | |||||||
Total revenue | 2,694,874 | 2,705,126 | |||||||
Expenses: | |||||||||
Depreciation and amortization | 999,929 | 993,564 | |||||||
Interest expense | 565,778 | 574,086 | |||||||
Other expenses | 721,279 | 731,044 | |||||||
Total expenses | 2,286,986 | 2,298,694 | |||||||
Other income: | |||||||||
Net loss | $ 407,888 | 406,432 | |||||||
REIT I | |||||||||
Liabilities: | |||||||||
Total revenue | 13,132,226 | ||||||||
Expenses: | |||||||||
Depreciation and amortization | 5,787,709 | ||||||||
Interest expense | 3,425,625 | ||||||||
Other expenses | 5,342,365 | ||||||||
Total expenses | 14,555,699 | ||||||||
Other income: | |||||||||
Gain on real estate investments, net | (1,850,845) | ||||||||
Loss on debt restructuring | 1,964,618 | ||||||||
Total other income | 113,773 | ||||||||
Net loss | $ (1,309,700) |
CONSOLIDATED BALANCE SHEETS D_3
CONSOLIDATED BALANCE SHEETS DETAILS (FY) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |||
Straight-line rent | $ 5,163,964 | $ 4,344,388 | $ 3,541,238 |
Tenant rent | 384,661 | 204,775 | 420,959 |
Tenant reimbursements | 1,979,963 | 1,854,883 | |
Tenant other | 136,664 | 407,684 | |
Total | 7,155,823 | 6,665,790 | 6,224,764 |
Accounts Payable and Accrued Liabilities [Abstract] | |||
Accounts payable | 398,793 | 1,136,954 | 660,111 |
Accrued expenses | 2,505,713 | 3,068,714 | 5,773,214 |
Accrued dividends | 649,812 | 706,106 | 962,615 |
Accrued interest payable | 580,882 | 629,628 | 1,690,168 |
Unearned rent | 1,684,491 | 2,033,065 | 1,963,896 |
Lease incentive obligation | 2,133,695 | 5,157 | 505,157 |
Total | $ 7,953,386 | $ 7,579,624 | 11,555,161 |
Accrued merger expenses | $ 1,570,622 |
DEBT - Summary of Company's Mor
DEBT - Summary of Company's Mortgage Notes (FY) (Details) | Mar. 05, 2021USD ($) | Apr. 01, 2020USD ($) | Feb. 04, 2020USD ($) | Jan. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)monthlyPayment | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 10, 2020USD ($) | Jul. 29, 2020USD ($) | Jul. 22, 2020USD ($) |
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 185,758,762 | $ 182,948,438 | $ 185,758,762 | $ 182,948,438 | |||||||||||
Plus: unamortized mortgage premium, net of discount | 390,426 | 447,471 | 390,426 | 447,471 | |||||||||||
Less: unamortized deferred financing costs | (1,683,279) | (1,491,715) | (1,683,279) | (1,491,715) | |||||||||||
Net principal | 184,465,909 | 181,904,194 | $ 184,465,909 | $ 181,904,194 | |||||||||||
Loans to assets ratio (as a percent) | 60.00% | 60.00% | |||||||||||||
Impairment of real estate investment properties | (400,999) | 761,100 | $ 349,457 | $ 9,157,068 | $ (400,999) | $ 9,506,525 | $ 10,267,625 | $ 0 | |||||||
Six Dollar General properties | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 3,711,118 | 3,747,520 | $ 3,711,118 | 3,747,520 | |||||||||||
Contractual interest rate | 4.69% | 4.69% | |||||||||||||
Effective interest rate | 4.69% | 4.69% | |||||||||||||
Dana | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 0 | 4,466,865 | $ 0 | 4,466,865 | |||||||||||
Contractual interest rate | 4.56% | 4.56% | |||||||||||||
Effective interest rate | 4.56% | 4.56% | |||||||||||||
Northrop Grumman | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 7,000,000 | 5,518,589 | $ 7,000,000 | 5,518,589 | |||||||||||
Contractual interest rate | 3.35% | 3.35% | |||||||||||||
Effective interest rate | 3.35% | 3.35% | |||||||||||||
exp US Services | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 3,288,786 | $ 3,321,931 | $ 3,288,786 | $ 3,321,931 | |||||||||||
Effective interest rate | 4.25% | 4.25% | |||||||||||||
exp US Services | Initial Contractual Interest One | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Initial contractual interest rate | 4.25% | 4.25% | 4.25% | 4.25% | |||||||||||
exp US Services | Treasury Bill Index | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Contractual interest rate | 3.25% | 3.25% | 3.25% | 3.25% | |||||||||||
Harley Davidson property | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 6,558,170 | $ 0 | $ 6,558,170 | $ 0 | |||||||||||
Contractual interest rate | 425.00% | 425.00% | |||||||||||||
Effective interest rate | 4.25% | 4.25% | |||||||||||||
Wyndham | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 5,551,200 | 5,607,000 | $ 5,551,200 | 5,607,000 | |||||||||||
Effective interest rate | 4.34% | 4.34% | |||||||||||||
Wyndham | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 2.05% | ||||||||||||||
Williams Sonoma | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 4,392,000 | 4,438,200 | $ 4,392,000 | 4,438,200 | |||||||||||
Effective interest rate | 4.34% | 4.34% | |||||||||||||
Williams Sonoma | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 2.05% | ||||||||||||||
Omnicare | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 4,151,386 | 4,193,171 | $ 4,151,386 | 4,193,171 | |||||||||||
Contractual interest rate | 4.36% | 4.36% | |||||||||||||
Effective interest rate | 4.36% | 4.36% | |||||||||||||
EMCOR | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 2,784,868 | 2,811,539 | $ 2,784,868 | 2,811,539 | |||||||||||
Contractual interest rate | 4.35% | 4.35% | |||||||||||||
Effective interest rate | 4.35% | 4.35% | |||||||||||||
Husqvarna | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 6,379,182 | $ 6,379,182 | $ 6,379,182 | $ 6,379,182 | |||||||||||
Contractual interest rate | 4.60% | 4.60% | 4.60% | 4.60% | |||||||||||
Effective interest rate | 4.60% | 4.60% | |||||||||||||
Husqvarna | Treasury Bill Index | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 2.45% | ||||||||||||||
Husqvarna | Maximum | Treasury Bill Index | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Contractual interest rate | 2.45% | 2.45% | |||||||||||||
AvAir | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 19,950,000 | $ 19,950,000 | $ 19,950,000 | $ 19,950,000 | |||||||||||
Contractual interest rate | 3.80% | 3.80% | |||||||||||||
Effective interest rate | 3.80% | 3.80% | |||||||||||||
3M | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 8,091,800 | 8,166,000 | $ 8,091,800 | 8,166,000 | |||||||||||
Effective interest rate | 5.09% | 5.09% | |||||||||||||
3M | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 2.25% | ||||||||||||||
Former 24 Hour Fitness | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Impairment of real estate investment properties | $ 5,664,517 | ||||||||||||||
Texas Health | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 4,324,160 | 4,363,203 | $ 4,324,160 | 4,363,203 | |||||||||||
Contractual interest rate | 4.00% | 4.00% | |||||||||||||
Effective interest rate | 4.00% | 4.00% | |||||||||||||
Bon Secours | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 5,142,425 | 5,180,552 | $ 5,142,425 | 5,180,552 | |||||||||||
Contractual interest rate | 5.41% | 5.41% | |||||||||||||
Effective interest rate | 5.41% | 5.41% | |||||||||||||
Costco | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 18,850,000 | 18,850,000 | $ 18,850,000 | 18,850,000 | |||||||||||
Contractual interest rate | 4.85% | 4.85% | |||||||||||||
Effective interest rate | 4.85% | 4.85% | |||||||||||||
Taylor Fresh Foods property | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 12,350,000 | 12,350,000 | $ 12,350,000 | 12,350,000 | |||||||||||
Contractual interest rate | 3.85% | 3.85% | |||||||||||||
Effective interest rate | 3.85% | 3.85% | |||||||||||||
Levins | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 2,687,293 | 2,032,332 | $ 2,687,293 | 2,032,332 | |||||||||||
Contractual interest rate | 3.75% | 3.75% | |||||||||||||
Effective interest rate | 3.75% | 3.75% | |||||||||||||
GSA (MSHA) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 1,743,349 | 1,752,092 | $ 1,743,349 | 1,752,092 | |||||||||||
Contractual interest rate | 3.65% | 3.65% | |||||||||||||
Effective interest rate | 3.65% | 3.65% | |||||||||||||
GSA (MSHA) | Swap | Subsequent Event | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Derivative, cost of hedge net of cash received | $ 9,900 | ||||||||||||||
PreK San Antonio | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 4,984,311 | 5,037,846 | $ 4,984,311 | 5,037,846 | |||||||||||
Contractual interest rate | 4.25% | 4.25% | |||||||||||||
Effective interest rate | 4.25% | 4.25% | |||||||||||||
Dinan Cars | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Proceeds from lease payments | $ 783,182 | ||||||||||||||
Dinan Cars | Swap | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Derivative, cost of hedge net of cash received | $ 47,000 | ||||||||||||||
Dollar General, Big Spring | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 593,851 | 599,756 | $ 593,851 | 599,756 | |||||||||||
Contractual interest rate | 4.50% | 4.50% | |||||||||||||
Effective interest rate | 4.50% | 4.50% | |||||||||||||
Gap | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 3,531,585 | 3,569,990 | $ 3,531,585 | 3,569,990 | |||||||||||
Contractual interest rate | 4.15% | 4.15% | |||||||||||||
Effective interest rate | 4.15% | 4.15% | |||||||||||||
Sutter Health | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 13,739,153 | 13,879,655 | $ 13,739,153 | 13,879,655 | |||||||||||
Contractual interest rate | 4.50% | 4.50% | |||||||||||||
Effective interest rate | 4.50% | 4.50% | |||||||||||||
Mortgage Notes Payable | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 182,758,762 | 176,948,438 | $ 182,758,762 | 176,948,438 | 195,739,481 | ||||||||||
Plus: unamortized mortgage premium, net of discount | 390,426 | 447,471 | 390,426 | 447,471 | 489,664 | ||||||||||
Less: unamortized deferred financing costs | (1,572,582) | (1,469,991) | (1,572,582) | (1,469,991) | (2,189,938) | ||||||||||
Net principal | $ 181,576,606 | 175,925,918 | $ 181,576,606 | 175,925,918 | 194,039,207 | ||||||||||
Mortgage Notes Payable | Subsequent Event | Minimum | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Effective interest rate | 3.65% | ||||||||||||||
Debt instrument, term | 5 years | ||||||||||||||
Mortgage Notes Payable | Subsequent Event | Maximum | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Effective interest rate | 3.75% | ||||||||||||||
Debt instrument, term | 7 years | ||||||||||||||
Mortgage Notes Payable | Accredo/Walgreens properties | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 8,538,000 | $ 8,538,000 | $ 6,853,442 | $ 8,538,000 | |||||||||||
Contractual interest rate | 3.80% | 3.80% | |||||||||||||
Effective interest rate | 3.80% | 3.80% | 3.95% | 3.80% | |||||||||||
Mortgage Notes Payable | Six Dollar General properties | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 3,747,520 | $ 3,747,520 | $ 3,819,264 | ||||||||||||
Contractual interest rate | 4.69% | 4.69% | |||||||||||||
Effective interest rate | 4.69% | 4.69% | |||||||||||||
Mortgage Notes Payable | Dana | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 4,466,865 | $ 4,466,865 | 4,551,250 | ||||||||||||
Contractual interest rate | 4.56% | 4.56% | |||||||||||||
Effective interest rate | 4.56% | 4.56% | |||||||||||||
Mortgage Notes Payable | Northrop Grumman | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 5,518,589 | $ 5,518,589 | 5,666,866 | ||||||||||||
Contractual interest rate | 4.40% | 4.40% | |||||||||||||
Effective interest rate | 4.40% | 4.40% | |||||||||||||
Mortgage Notes Payable | exp US Services | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 3,321,931 | $ 3,321,931 | 3,385,353 | ||||||||||||
Effective interest rate | 4.25% | 4.25% | |||||||||||||
Mortgage Notes Payable | Harley Davidson property | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 0 | $ 0 | 6,748,029 | ||||||||||||
Contractual interest rate | 4.25% | 4.25% | |||||||||||||
Effective interest rate | 4.25% | 4.25% | |||||||||||||
Mortgage Notes Payable | Wyndham | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 5,607,000 | $ 5,607,000 | 5,716,200 | ||||||||||||
Effective interest rate | 4.34% | 4.34% | |||||||||||||
Mortgage Notes Payable | Wyndham | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 2.05% | ||||||||||||||
Mortgage Notes Payable | Williams Sonoma | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 4,438,200 | $ 4,438,200 | 4,530,600 | ||||||||||||
Effective interest rate | 4.34% | 4.34% | |||||||||||||
Mortgage Notes Payable | Williams Sonoma | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 2.05% | ||||||||||||||
Mortgage Notes Payable | Omnicare | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 4,193,171 | $ 4,193,171 | 4,273,552 | ||||||||||||
Contractual interest rate | 4.36% | 4.36% | |||||||||||||
Effective interest rate | 4.36% | 4.36% | |||||||||||||
Mortgage Notes Payable | EMCOR | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 2,811,539 | $ 2,811,539 | 2,862,484 | ||||||||||||
Contractual interest rate | 4.35% | 4.35% | |||||||||||||
Effective interest rate | 4.35% | 4.35% | |||||||||||||
Mortgage Notes Payable | Husqvarna | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 6,379,182 | $ 6,379,182 | 6,379,182 | ||||||||||||
Effective interest rate | 4.60% | 4.60% | |||||||||||||
Mortgage Notes Payable | AvAir | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 19,950,000 | $ 19,950,000 | $ 14,575,000 | $ 19,950,000 | |||||||||||
Contractual interest rate | 380.00% | 380.00% | |||||||||||||
Effective interest rate | 3.80% | 3.80% | 4.84% | 3.80% | |||||||||||
Mortgage Notes Payable | 3M | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 8,166,000 | $ 8,166,000 | $ 8,290,000 | ||||||||||||
Effective interest rate | 5.09% | 5.09% | |||||||||||||
Mortgage Notes Payable | 3M | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 2.25% | ||||||||||||||
Mortgage Notes Payable | Cummins | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 8,332,200 | $ 8,332,200 | 8,458,600 | ||||||||||||
Effective interest rate | 5.16% | 5.16% | |||||||||||||
Mortgage Notes Payable | Cummins | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 2.25% | ||||||||||||||
Mortgage Notes Payable | Former 24 Hour Fitness | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 0 | $ 0 | 6,283,898 | ||||||||||||
Effective interest rate | 4.64% | 4.64% | |||||||||||||
Monthly mortgage payment | $ 32,000 | ||||||||||||||
Decrease in monthly mortgage payment | $ 8,000 | ||||||||||||||
Number of reduced monthly payments | monthlyPayment | 4 | ||||||||||||||
Mortgage Notes Payable | Former 24 Hour Fitness | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 4.30% | ||||||||||||||
Mortgage Notes Payable | Texas Health | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 4,363,203 | $ 4,363,203 | 4,400,000 | ||||||||||||
Contractual interest rate | 4.00% | 4.00% | |||||||||||||
Effective interest rate | 4.00% | 4.00% | |||||||||||||
Mortgage Notes Payable | Bon Secours | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 5,180,552 | $ 5,180,552 | 5,250,000 | ||||||||||||
Contractual interest rate | 5.41% | 5.41% | |||||||||||||
Effective interest rate | 5.41% | 5.41% | |||||||||||||
Mortgage Notes Payable | Costco | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 18,850,000 | $ 18,850,000 | 18,850,000 | ||||||||||||
Contractual interest rate | 4.85% | 4.85% | |||||||||||||
Effective interest rate | 4.85% | 4.85% | |||||||||||||
Mortgage Notes Payable | Taylor Fresh Foods property | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 12,350,000 | $ 12,350,000 | 12,350,000 | ||||||||||||
Contractual interest rate | 3.85% | 3.85% | |||||||||||||
Effective interest rate | 3.85% | 3.85% | |||||||||||||
Mortgage Notes Payable | Levins | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 2,032,332 | $ 2,032,332 | 2,079,793 | ||||||||||||
Effective interest rate | 3.74% | 3.74% | |||||||||||||
Mortgage Notes Payable | Levins | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 1.93% | ||||||||||||||
Mortgage Notes Payable | Levins | Subsequent Event | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 2,700,000 | ||||||||||||||
Effective interest rate | 3.75% | ||||||||||||||
Mortgage Notes Payable | Island Pacific Supermarket | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 0 | $ 0 | 1,891,225 | ||||||||||||
Effective interest rate | 3.74% | 3.74% | |||||||||||||
Mortgage Notes Payable | Island Pacific Supermarket | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 1.93% | ||||||||||||||
Mortgage Notes Payable | Dollar General, Bakersfield | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 2,268,922 | $ 2,268,922 | 2,324,338 | ||||||||||||
Effective interest rate | 3.38% | 3.38% | |||||||||||||
Mortgage Notes Payable | Dollar General, Bakersfield | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 1.48% | ||||||||||||||
Mortgage Notes Payable | Rite Aid | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 0 | $ 0 | 3,659,338 | ||||||||||||
Effective interest rate | 3.25% | 3.25% | |||||||||||||
Mortgage Notes Payable | Rite Aid | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 1.50% | ||||||||||||||
Mortgage Notes Payable | PMI Preclinical | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 4,020,418 | $ 4,020,418 | 4,118,613 | ||||||||||||
Effective interest rate | 3.38% | 3.38% | |||||||||||||
Mortgage Notes Payable | PMI Preclinical | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 1.48% | ||||||||||||||
Mortgage Notes Payable | PMI Preclinical | Subsequent Event | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 5,400,000 | ||||||||||||||
Effective interest rate | 3.75% | ||||||||||||||
Mortgage Notes Payable | EcoThrift property | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 0 | $ 0 | 2,639,237 | ||||||||||||
Effective interest rate | 2.96% | 2.96% | |||||||||||||
Mortgage Notes Payable | EcoThrift property | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 1.21% | ||||||||||||||
Mortgage Notes Payable | GSA (MSHA) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 1,752,092 | $ 1,752,092 | 1,796,361 | ||||||||||||
Effective interest rate | 3.13% | 3.13% | |||||||||||||
Mortgage Notes Payable | GSA (MSHA) | (LIBOR) | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Basis spread on variable rate ( as a percent) | 1.25% | ||||||||||||||
Mortgage Notes Payable | GSA (MSHA) | Subsequent Event | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 1,756,000 | ||||||||||||||
Effective interest rate | 3.65% | ||||||||||||||
Mortgage Notes Payable | PreK San Antonio | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 5,037,846 | $ 5,037,846 | 5,140,343 | ||||||||||||
Contractual interest rate | 4.25% | 4.25% | |||||||||||||
Effective interest rate | 4.25% | 4.25% | |||||||||||||
Mortgage Notes Payable | Dinan Cars | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 0 | $ 0 | 2,710,834 | ||||||||||||
Contractual interest rate | 2.76% | 2.76% | |||||||||||||
Effective interest rate | 2.76% | 2.76% | |||||||||||||
Repayments of debt | 650,000 | ||||||||||||||
Debt instrument, payment reserve | $ 133,182 | ||||||||||||||
Mortgage Notes Payable | Solar Turbines/Wood Group/ITW Rippey | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 9,214,700 | $ 9,214,700 | 9,434,692 | ||||||||||||
Contractual interest rate | 3.35% | 3.35% | |||||||||||||
Effective interest rate | 3.35% | 3.35% | |||||||||||||
Mortgage Notes Payable | Dollar General, Big Spring | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 599,756 | $ 599,756 | 611,161 | ||||||||||||
Contractual interest rate | 4.50% | 4.50% | |||||||||||||
Effective interest rate | 4.50% | 4.50% | |||||||||||||
Mortgage Notes Payable | Gap | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 3,569,990 | $ 3,569,990 | 3,643,166 | ||||||||||||
Contractual interest rate | 4.15% | 4.15% | |||||||||||||
Effective interest rate | 4.15% | 4.15% | |||||||||||||
Mortgage Notes Payable | L-3 Communications | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 5,185,929 | $ 5,185,929 | 5,284,884 | ||||||||||||
Contractual interest rate | 4.69% | 4.69% | |||||||||||||
Effective interest rate | 4.69% | 4.69% | |||||||||||||
Mortgage Notes Payable | Sutter Health | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 13,879,655 | $ 13,879,655 | 14,161,776 | ||||||||||||
Contractual interest rate | 4.50% | 4.50% | |||||||||||||
Effective interest rate | 4.50% | 4.50% | |||||||||||||
Mortgage Notes Payable | Walgreens Santa Maria property | |||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||
Principal balance | $ 3,172,846 | $ 3,172,846 | $ 3,000,000 | $ 3,217,500 | |||||||||||
Contractual interest rate | 4.25% | 4.25% | |||||||||||||
Effective interest rate | 4.25% | 4.25% | 7.50% | 4.25% |
DEBT - Mortgage Notes Payable (
DEBT - Mortgage Notes Payable (FY) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | |||
Carrying Value | $ 184,465,909 | $ 181,904,194 | |
Fair Value | 184,187,667 | 177,573,106 | |
Mortgage Notes Payable | |||
Short-term Debt [Line Items] | |||
Face Value | 176,948,438 | $ 195,739,481 | |
Carrying Value | $ 181,576,606 | 175,925,918 | 194,039,207 |
Fair Value | $ 177,573,106 | $ 200,535,334 |
DEBT - Narrative (FY) (Details)
DEBT - Narrative (FY) (Details) | Mar. 31, 2021USD ($) | Mar. 29, 2021USD ($) | Dec. 31, 2020USD ($)property | Aug. 13, 2020USD ($) | Mar. 31, 2020USD ($) | Feb. 28, 2020USD ($) | Dec. 19, 2019USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020property | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($) | Jul. 09, 2021USD ($) | Apr. 20, 2020USD ($) | Apr. 06, 2020USD ($) | Mar. 27, 2020 | Mar. 26, 2020 | Mar. 13, 2020USD ($) | Feb. 27, 2020 |
Debt Instrument [Line Items] | ||||||||||||||||||||
Number of properties classified as real estate held for sale | property | 4 | 4 | (9) | |||||||||||||||||
Outstanding balance of unsecured credit facility | $ 6,000,000 | $ 3,000,000 | $ 3,000,000 | $ 6,000,000 | $ 7,740,000 | |||||||||||||||
Repayments of unsecured credit facility | 9,000,000 | $ 0 | 6,000,000 | $ 13,869,000 | ||||||||||||||||
Aggregate fair value | $ 177,573,106 | $ 184,187,667 | $ 184,187,667 | $ 177,573,106 | ||||||||||||||||
Maximum leverage ratio | 0.55 | 0.55 | 0.55 | 0.50 | ||||||||||||||||
Unsecured Credit Facility | Unsecured Debt | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 12,000,000 | |||||||||||||||||||
Repayments of unsecured credit facility | $ 6,000,000 | $ 6,000,000 | ||||||||||||||||||
Outstanding borrowings under the unsecured credit facility | 12,000,000 | |||||||||||||||||||
Loan extension and modification fees paid | 25,000 | |||||||||||||||||||
Line of credit facility, interest rate at period end | 5.50% | 5.50% | 5.75% | |||||||||||||||||
Prime Rate | Unsecured Credit Facility | Unsecured Debt | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate ( as a percent) | 1.00% | |||||||||||||||||||
Minimum | Unsecured Credit Facility | Unsecured Debt | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit facility, interest rate during period | 5.50% | 4.75% | ||||||||||||||||||
Subsequent Event | Unsecured Credit Facility | Unsecured Debt | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit facility, interest rate at period end | 5.50% | |||||||||||||||||||
Loans, Mature on July 31, 2020 | Unsecured Credit Facility | Unsecured Debt | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 6,940,000 | |||||||||||||||||||
Loans, Mature on August 31, 2020 | Unsecured Credit Facility | Unsecured Debt | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 3,060,000 | |||||||||||||||||||
Loans, Mature on September 1, 2020 | Unsecured Credit Facility | Unsecured Debt | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | 6,000,000 | |||||||||||||||||||
Loans, Mature on October 15, 2021 | Unsecured Credit Facility | Unsecured Debt | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 6,000,000 | |||||||||||||||||||
Loans, Mature on October 15, 2021 | Unsecured Credit Facility | Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Outstanding balance of unsecured credit facility | $ 6,000,000 | $ 6,000,000 | ||||||||||||||||||
New Credit Facility | Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 22,000,000 | |||||||||||||||||||
Amount borrowed under the credit facility | $ 6,000,000 | |||||||||||||||||||
Debt origination fees paid | $ 77,000 | |||||||||||||||||||
Line of credit facility, unused commitment fee percentage | 0.15% | |||||||||||||||||||
Minimum debt service coverage ratio | 125.00% | |||||||||||||||||||
Minimum tangible NAV | $ 120,000,000 | |||||||||||||||||||
New Credit Facility | Revolving Credit Facility, Real Estate Acquisitions | Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | 17,000,000 | |||||||||||||||||||
New Credit Facility | Revolving Credit Facility, Working Capital | Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 5,000,000 | |||||||||||||||||||
New Credit Facility | Prime Rate | Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate ( as a percent) | 1.00% | |||||||||||||||||||
New Credit Facility | Subsequent Event | Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 22,000,000 | |||||||||||||||||||
Amount borrowed under the credit facility | $ 6,000,000 | |||||||||||||||||||
Line of credit facility, interest rate during period | 4.75% | |||||||||||||||||||
Debt origination fees paid | $ 77,000 | |||||||||||||||||||
Line of credit facility, unused commitment fee percentage | 0.15% | |||||||||||||||||||
Minimum debt service coverage ratio | 125.00% | |||||||||||||||||||
Minimum tangible NAV | $ 120,000,000 | |||||||||||||||||||
New Credit Facility | Subsequent Event | Revolving Credit Facility, Real Estate Acquisitions | Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | 17,000,000 | |||||||||||||||||||
New Credit Facility | Subsequent Event | Revolving Credit Facility, Working Capital | Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 5,000,000 | $ 5,000,000 | ||||||||||||||||||
New Credit Facility | Subsequent Event | Prime Rate | Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate ( as a percent) | 1.00% | |||||||||||||||||||
Revolving Line of Credit Due by September 30, 2021 | Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayments of unsecured credit facility | $ 6,000,000 | |||||||||||||||||||
Revolving Line of Credit Due by September 30, 2021 | Subsequent Event | Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayments of unsecured credit facility | $ 6,000,000 | |||||||||||||||||||
Convertible Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Aggregate face amount | $ 4,800,000 | |||||||||||||||||||
Debt instrument, interest rate, stated percentage | 10.00% | 8.00% | ||||||||||||||||||
Aggregate fair value | $ 1,024,750 | $ 1,024,750 | $ 490,000 | |||||||||||||||||
Notes payable extension fee percentage | 2.00% | |||||||||||||||||||
Notes payable extension fee | $ 14,845 | $ 24,845 | ||||||||||||||||||
Notes payable extension fee reduction | $ 10,000 | |||||||||||||||||||
Short-term Notes Payable | Loan Agreement and Promissory Note, Paycheck Protection Program, CARES Act | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Aggregate face amount | $ 517,000 |
DEBT - Mortgage Notes Payable R
DEBT - Mortgage Notes Payable Related to Real Estate Investments Held For Sale, Net (FY) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Principal amount | $ 185,758,762 | $ 182,948,438 | |
Plus unamortized mortgage premium | 390,426 | 447,471 | |
Less: deferred financing costs | (1,683,279) | (1,491,715) | |
Net principal | 184,465,909 | 181,904,194 | |
Harley Davidson property | |||
Debt Instrument [Line Items] | |||
Principal amount | 6,558,170 | 0 | |
Mortgage Notes Payable | |||
Debt Instrument [Line Items] | |||
Principal amount | 182,758,762 | 176,948,438 | $ 195,739,481 |
Plus unamortized mortgage premium | 390,426 | 447,471 | 489,664 |
Less: deferred financing costs | (1,572,582) | (1,469,991) | (2,189,938) |
Net principal | 181,576,606 | 175,925,918 | 194,039,207 |
Mortgage Notes Payable | Harley Davidson property | |||
Debt Instrument [Line Items] | |||
Principal amount | 0 | 6,748,029 | |
Mortgage Notes Payable | EcoThrift property | |||
Debt Instrument [Line Items] | |||
Principal amount | 0 | $ 2,639,237 | |
Mortgage Notes Payable | Secured Notes Payable, Real Estate Held-for-sale | |||
Debt Instrument [Line Items] | |||
Principal amount | 4,422,616 | 9,196,855 | |
Plus unamortized mortgage premium | 0 | 1,550 | |
Less: deferred financing costs | (41,190) | (109,967) | |
Net principal | 4,381,426 | 9,088,438 | |
Mortgage Notes Payable | Secured Notes Payable, Real Estate Held-for-sale | Harley Davidson property | Retail | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 0 | 6,623,346 | |
Mortgage Notes Payable | Secured Notes Payable, Real Estate Held-for-sale | EcoThrift property | Retail | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 2,573,509 |
DEBT - Unsecured Credit Facilit
DEBT - Unsecured Credit Facility, Net (FY) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | |||
Unsecured credit facility | $ 3,000,000 | $ 6,000,000 | $ 7,740,000 |
Less unamortized deferred financing costs | (110,697) | (21,724) | (90,139) |
Unsecured credit facility, net | $ 2,889,303 | $ 5,978,276 | $ 7,649,861 |
DEBT - Debt Maturities (FY) (De
DEBT - Debt Maturities (FY) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
2021 | $ 11,171,882 | $ 23,091,541 | |
2022 | 22,203,304 | 20,873,759 | |
2023 | 31,562,644 | 25,642,649 | |
2024 | 28,970,205 | 24,599,437 | |
2025 | 26,484,106 | 30,781,473 | |
Thereafter | 56,169,973 | 57,959,579 | |
Total principal | 185,758,762 | 182,948,438 | |
Plus: unamortized mortgage premium, net of discount | 390,426 | 447,471 | |
Less: deferred financing costs | (1,683,279) | (1,491,715) | |
Net principal | 184,465,909 | 181,904,194 | |
Mortgage Notes Payable | |||
Debt Instrument [Line Items] | |||
2021 | 17,091,541 | ||
2022 | 20,873,759 | ||
2023 | 25,642,649 | ||
2024 | 24,599,437 | ||
2025 | 30,781,473 | ||
Thereafter | 57,959,579 | ||
Total principal | 182,758,762 | 176,948,438 | $ 195,739,481 |
Plus: unamortized mortgage premium, net of discount | 390,426 | 447,471 | 489,664 |
Less: deferred financing costs | (1,572,582) | (1,469,991) | (2,189,938) |
Net principal | $ 181,576,606 | 175,925,918 | $ 194,039,207 |
Credit Facility | |||
Debt Instrument [Line Items] | |||
2021 | 6,000,000 | ||
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
Thereafter | 0 | ||
Total principal | 6,000,000 | ||
Plus: unamortized mortgage premium, net of discount | 0 | ||
Less: deferred financing costs | (21,724) | ||
Net principal | $ 5,978,276 |
DEBT - Interest Expenses Reconc
DEBT - Interest Expenses Reconciliation (FY) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||||
Interest expense | $ 2,098,649 | $ 2,558,877 | $ 3,879,785 | $ 6,463,533 | $ 11,460,747 | $ 7,382,610 |
Amortization of deferred financing costs | 1,025,093 | 638,200 | ||||
Loss on interest rate swaps | (90,600) | 7,785 | (517,719) | 1,292,752 | 770,898 | 820,496 |
Accrued interest payable | 55,180 | 55,180 | 45,636 | 22,282 | ||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 1,992,812 | 2,129,678 | 3,826,636 | 4,300,183 | 8,470,248 | 5,698,606 |
Amortization of deferred financing costs | 103,383 | 139,600 | 214,426 | 258,631 | 937,564 | 601,658 |
Loss on interest rate swaps | (92,200) | 70,985 | (420,243) | 1,395,697 | 1,172,781 | 843,174 |
Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 63,333 | 166,834 | 142,085 | 321,458 | 527,047 | 190,130 |
Amortization of deferred financing costs | $ 22,139 | $ 42,876 | $ 43,863 | $ 75,336 | 128,171 | 36,542 |
Other loan fees | $ 224,936 | $ 12,500 |
INTEREST RATE SWAP DERIVATIVE_5
INTEREST RATE SWAP DERIVATIVES - Narrative (FY) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($)instrument | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)instrument | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Number of swap agreements terminated | 3 | |||||
Number of swap agreements classified to liabilities | 1 | |||||
Unrealized gain (loss) on derivatives | $ | $ 90,600 | $ (7,785) | $ 517,719 | $ (1,292,752) | $ (770,898) | $ (820,496) |
Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Number of mortgage notes payable | 4 | 4 | 4 | |||
Number of swap agreements terminated | 4 | |||||
Interest Rate Swap | REIT I | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Number of additional derivative instruments acquired | 8 |
INTEREST RATE SWAP DERIVATIVE_6
INTEREST RATE SWAP DERIVATIVES - Notional Amounts of Derivative Instruments (FY) (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument | Jun. 30, 2021USD ($)instrument | |
Minimum | |||
Derivatives, Fair Value [Line Items] | |||
Minimum notional amounts | $ 34,989,063 | $ 24,935,999 | |
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Number of Instruments | instrument | 8 | 12 | 4 |
Notional Amount | $ 36,617,164 | $ 48,215,139 | |
Weighted Average Fixed Pay Rate | 3.35% | 3.87% | 4.55% |
Weighted Average Remaining Term | 2 years 2 months 12 days | 2 years 10 months 24 days | |
Minimum notional amounts | $ 36,617,164 | $ 26,291,600 | |
Interest Rate Swap | Minimum | |||
Derivatives, Fair Value [Line Items] | |||
Minimum notional amounts | $ 34,989,063 | $ 45,514,229 | |
(LIBOR) | Interest Rate Swap | Minimum | |||
Derivatives, Fair Value [Line Items] | |||
Reference Rate | 3.13% | 2.76% | 4.05% |
(LIBOR) | Interest Rate Swap | Maximum | |||
Derivatives, Fair Value [Line Items] | |||
Reference Rate | 5.16% | 5.16% | 5.16% |
INTEREST RATE SWAP DERIVATIVE_7
INTEREST RATE SWAP DERIVATIVES - Fair Value of Derivative Instruments (FY) (Details) | Jun. 30, 2021USD ($)instrument | Dec. 31, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument |
Derivatives, Fair Value [Line Items] | |||
Derivative asset fair value | $ 0 | $ 34,567 | |
Derivative liability fair value | $ (1,240,336) | $ (1,743,889) | $ (1,021,724) |
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Number of Instruments | instrument | 4 | 8 | 12 |
Liability | Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Number of Instruments | instrument | 4 | 8 | 7 |
Derivative liability fair value | $ (1,240,336) | $ (1,743,889) | $ (1,021,724) |
Assets | Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Number of Instruments | instrument | 0 | 0 | 5 |
Derivative asset fair value | $ 0 | $ 0 | $ 34,567 |
REIT I | Liability | Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Number of Instruments | instrument | 3 | ||
Derivative liability fair value | $ (51,514) | ||
REIT I | Assets | Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Number of Instruments | instrument | 5 | ||
Derivative asset fair value | $ 34,567 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (FY) (Details) | Feb. 01, 2021 | Aug. 28, 2020USD ($) | Jul. 31, 2020USD ($) | Mar. 02, 2020USD ($)property | Jul. 31, 2020USD ($)shares | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)propertynotesPayableloanshares | Sep. 30, 2019USD ($) | Apr. 23, 2020USD ($) | Dec. 31, 2018USD ($) |
Related Party Transaction [Line Items] | |||||||||||||||
Payments to independent member of Company's board of directors for services rendered | $ 31,250 | ||||||||||||||
Related party payable | $ 0 | $ 630,820 | |||||||||||||
Reverse stock split, conversion ratio | 0.3333 | ||||||||||||||
Repayments of related party debt | 0 | 107,500 | |||||||||||||
Amount paid for related party transactions | 0 | ||||||||||||||
Related party receivable | $ 0 | $ 2,332 | |||||||||||||
Property management fees percentage | 1.50% | ||||||||||||||
Number of real estate properties under property management services | property | 10 | ||||||||||||||
Leasing commissions and fees, percentage of rents | 6.00% | ||||||||||||||
Leasing commission fee, renewal rate | 3.00% | ||||||||||||||
Limitation as of average invested assets (as a percent) | 2.00% | ||||||||||||||
Limitation as of net income (as a percent) | 25.00% | ||||||||||||||
Hosting services agreement term | 3 years | ||||||||||||||
Hosting services agreement term, renewal period | 1 year | ||||||||||||||
Hosting services agreement term, termination notice period | 90 days | ||||||||||||||
Leasing Commission Fees | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount paid for related party transactions | $ 0 | ||||||||||||||
Waiver of asset management fees | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction fees | 0 | ||||||||||||||
Monthly asset management fees waive percentage | 0.025% | ||||||||||||||
Financing coordination fees | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party payable | 0 | ||||||||||||||
Amount paid for related party transactions | 107,500 | ||||||||||||||
Related party receivable | $ 0 | ||||||||||||||
Number of loans related to financing coordination fees | loan | 2 | ||||||||||||||
Property Selling Fee | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction fees, percentage | 3.00% | ||||||||||||||
Due from TIC | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party payable | $ 0 | ||||||||||||||
Amount paid for related party transactions | 0 | ||||||||||||||
Related party receivable | 954 | ||||||||||||||
Reimbursable organizational and offering expenses | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party payable | 0 | ||||||||||||||
Amount paid for related party transactions | 1,206,881 | ||||||||||||||
Related party receivable | 0 | ||||||||||||||
Accrual organization and offering cost | $ 5,429,105 | $ 5,429,105 | |||||||||||||
Due from BRIX REIT | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party payable | 0 | ||||||||||||||
Amount paid for related party transactions | $ 0 | 0 | |||||||||||||
Related party receivable | 1,378 | ||||||||||||||
Sponsor reimbursement | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction fees | 373,252 | ||||||||||||||
Acquisition fees | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction fees, percentage | 3.00% | ||||||||||||||
Amount paid for related party transactions | 746,459 | ||||||||||||||
Asset Management Fees | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party payable | 0 | ||||||||||||||
Related party transaction fees, percentage | 0.10% | ||||||||||||||
Amount paid for related party transactions | 2,777,021 | ||||||||||||||
Related party receivable | 0 | ||||||||||||||
Disposition Fees | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction fees, percentage | 6.00% | ||||||||||||||
Amount paid for related party transactions | 0 | ||||||||||||||
Subordinated participation fees | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party payable | $ 839,050 | ||||||||||||||
Reimbursable operating expense | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party payable | 0 | ||||||||||||||
Amount paid for related party transactions | 528,000 | ||||||||||||||
Related party receivable | 0 | ||||||||||||||
Advisor fees | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction fees, percentage | 0.10% | ||||||||||||||
Amount paid for related party transactions | $ 263,971 | ||||||||||||||
Asset management fees due from BRIX REIT, Inc. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party receivable | 285,818 | ||||||||||||||
Maximum | Acquisition fees | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction fees, percentage | 6.00% | ||||||||||||||
Sponsor | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Employment related legal fees | $ 40,915 | ||||||||||||||
Sponsor | Reimbursable organizational and offering expenses | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Gross offering proceeds, percentage | 3.00% | ||||||||||||||
Advisor | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Financing coordination fees percentage | 1.00% | ||||||||||||||
Subordinated participation fees percentage | 30.00% | ||||||||||||||
Board of Directors Chairman | Secured Notes Payable | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party payable | $ 630,820 | ||||||||||||||
Related party transaction fees, percentage | 10.00% | 10.00% | |||||||||||||
Related party transaction, number of notes payable | notesPayable | 2 | ||||||||||||||
Balloon payment due at maturity | $ 437,862 | ||||||||||||||
Board of Directors Chairman | Secured Notes Payable, Note One | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Balloon payment due at maturity | 218,931 | ||||||||||||||
Board of Directors Chairman | Secured Notes Payable, Note Two | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Balloon payment due at maturity | $ 218,931 | ||||||||||||||
Santa Clara | Advisor fees | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount paid for related party transactions | $ 47,984 | $ 47,984 | $ 95,967 | $ 95,967 | $ 191,933 | $ 191,933 | |||||||||
Wirta Trust | Board of Directors Chairman | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Notes payable, related party | $ 4,000,000 | ||||||||||||||
Number of real estate properties under mortgages | property | 2 | ||||||||||||||
Related party transaction fees, percentage | 8.00% | ||||||||||||||
Wirta Trust | Board of Directors Chairman | Chevron Gas Station, San Jose | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Repayments of related party debt | $ 2,000,000 | ||||||||||||||
Wirta Trust | Board of Directors Chairman | Chevron Gas Station, Roseville | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Repayments of related party debt | $ 2,000,000 | ||||||||||||||
Subsequent Event | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Reverse stock split, conversion ratio | 0.3333 | ||||||||||||||
Class C | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Common stock issued to board of directors (in shares) | shares | 4,821 | ||||||||||||||
Reverse stock split, conversion ratio | 1 | 1 | |||||||||||||
Director | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Payments to independent member of Company's board of directors for services rendered | 407,083 | $ 372,500 | |||||||||||||
Related party payable | $ 101,250 | $ 101,250 | 21,250 | 57,500 | |||||||||||
Amount paid in cash to board of directors | 50,000 | 0 | |||||||||||||
Director | Class C | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Value of stock issued to board of directors | $ 357,083 | $ 315,000 | |||||||||||||
Common stock issued to board of directors (in shares) | shares | 16,786 | 10,335 |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Related Party Costs (FY) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Incurred | $ 0 | ||
Receivable | 0 | $ 2,332 | |
Payable | 0 | 630,820 | |
Asset management fees | |||
Related Party Transaction [Line Items] | |||
Incurred | 2,777,021 | ||
Receivable | 0 | ||
Payable | 0 | ||
Reimbursable operating expense | |||
Related Party Transaction [Line Items] | |||
Incurred | 528,000 | ||
Receivable | 0 | ||
Payable | 0 | ||
Fees to affiliates | |||
Related Party Transaction [Line Items] | |||
Incurred | 3,305,021 | ||
Receivable | 0 | ||
Payable | 0 | ||
Property management fees | |||
Related Party Transaction [Line Items] | |||
Incurred | 224,922 | ||
Receivable | 0 | ||
Payable | 0 | ||
Directors and officers insurance and other reimbursements | |||
Related Party Transaction [Line Items] | |||
Incurred | 250,892 | ||
Receivable | 0 | ||
Payable | 0 | ||
Expense reimbursements from Former Sponsor | |||
Related Party Transaction [Line Items] | |||
Incurred | (332,337) | ||
Receivable | 0 | ||
Payable | 0 | ||
Acquisition fees | |||
Related Party Transaction [Line Items] | |||
Incurred | 746,459 | ||
Receivable | 0 | ||
Payable | 0 | ||
Financing coordination fees | |||
Related Party Transaction [Line Items] | |||
Incurred | 107,500 | ||
Receivable | 0 | ||
Payable | 0 | ||
Reimbursable organizational and offering expenses | |||
Related Party Transaction [Line Items] | |||
Incurred | 1,206,881 | ||
Receivable | 0 | ||
Payable | 0 | ||
Due from BRIX REIT | |||
Related Party Transaction [Line Items] | |||
Incurred | $ 0 | 0 | |
Receivable | 1,378 | ||
Payable | 0 | ||
Due from TIC | |||
Related Party Transaction [Line Items] | |||
Incurred | 0 | ||
Receivable | 954 | ||
Payable | 0 | ||
Notes due to Chairman of the Board | |||
Related Party Transaction [Line Items] | |||
Incurred | 0 | ||
Receivable | 0 | ||
Payable | 630,820 | ||
Waiver of asset management fees | |||
Related Party Transaction [Line Items] | |||
Monthly asset management fees waive percentage | 0.025% | ||
Related party transaction fees | 0 | ||
Asset management fees due from BRIX REIT, Inc. | |||
Related Party Transaction [Line Items] | |||
Receivable | $ 285,818 | ||
Sponsor | |||
Related Party Transaction [Line Items] | |||
Employment related legal fees | $ 40,915 | ||
Organizational and offering costs incurred | $ 9,224,997 | ||
Sponsor | Reimbursable organizational and offering expenses | |||
Related Party Transaction [Line Items] | |||
Gross offering proceeds, percentage | 3.00% |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Advisor Fees to Santa Clara (FY) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Amount paid for related party transactions | $ 0 | |
Santa Clara | Asset management fees | ||
Related Party Transaction [Line Items] | ||
Amount paid for related party transactions | $ 191,933 | $ 191,907 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Advisor Fees to REIT I (FY) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Amount paid for related party transactions | $ 0 | |
Acquisition fees | ||
Related Party Transaction [Line Items] | ||
Amount paid for related party transactions | $ 746,459 | |
REIT I | ||
Related Party Transaction [Line Items] | ||
Amount paid for related party transactions | 51,768 | |
REIT I | Asset management fees | ||
Related Party Transaction [Line Items] | ||
Amount paid for related party transactions | 34,968 | |
REIT I | Other | ||
Related Party Transaction [Line Items] | ||
Amount paid for related party transactions | $ 16,800 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (FY) (Details) - USD ($) | Oct. 29, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 29, 2020 |
COMMITMENTS AND CONTINGENCIES [Line Items] | |||||
Restricted cash | $ 2,508,471 | $ 129,118 | $ 113,362 | ||
Operating lease, remaining lease term | 4 years 6 months | ||||
Lease termination fee | $ (1,350,000) | $ (1,039,648) | 0 | ||
Collection (release) of security deposit | (135,544) | ||||
Cash payment of operating lease | $ 1,214,456 | ||||
Operating lease liability | 0 | 2,386,877 | $ 2,087,713 | ||
Operating lease, current liability | 242,216 | ||||
Operating lease right-of-use asset | $ 0 | 2,386,877 | $ 2,019,577 | ||
Operating lease, discount rate | 5.75% | ||||
Share repurchases payable | $ 1,001,243 | $ 2,980,559 | 0 | ||
Maximum | |||||
COMMITMENTS AND CONTINGENCIES [Line Items] | |||||
Shares authorized to be repurchased per month (as a percent) | 2.00% | 2.00% | |||
Shares authorized to be repurchased per quarter (as a percent) | 5.00% | 5.00% | |||
Lease Agreements | |||||
COMMITMENTS AND CONTINGENCIES [Line Items] | |||||
Obligation amount to pay for site and tenant improvements | $ 60,598 | 98,329 | |||
Restricted cash | $ 2,400,000 | $ 92,684 | $ 92,684 | ||
Lease Agreements | Santa Clara Property | |||||
COMMITMENTS AND CONTINGENCIES [Line Items] | |||||
Ownership (as a percent) | 72.70% |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (FY) (Details) | Jul. 26, 2021USD ($)$ / shares | Mar. 31, 2021USD ($) | Mar. 29, 2021USD ($) | Mar. 25, 2021USD ($)$ / shares | Mar. 05, 2021USD ($) | Mar. 01, 2021USD ($) | Feb. 25, 2021USD ($)$ / shares | Feb. 12, 2021USD ($) | Feb. 01, 2021USD ($)$ / sharesshares | Jan. 31, 2021USD ($)$ / shares | Jan. 29, 2021USD ($)shares | Jan. 25, 2021$ / sharesshares | Jan. 22, 2021USD ($)$ / shares | Jan. 21, 2021USD ($) | Jan. 07, 2021USD ($) | Aug. 13, 2020USD ($) | Feb. 28, 2020USD ($) | Dec. 19, 2019USD ($) | Aug. 13, 2021USD ($)shares | Jan. 31, 2021USD ($)$ / shares | Jan. 27, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Feb. 28, 2021USD ($)shares | Feb. 28, 2021USD ($)shares | Aug. 04, 2021$ / shares | May 05, 2021$ / shares | Mar. 24, 2021USD ($)$ / sharesshares | Jun. 01, 2020$ / shares | May 20, 2020$ / shares | Dec. 23, 2019USD ($) | Jan. 14, 2019$ / shares | Jan. 18, 2018$ / shares | Dec. 31, 2016USD ($) | Jul. 19, 2016USD ($) | Jul. 15, 2015USD ($) |
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Stock split, conversion ratio | 0.3333 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock and investor deposits | $ 2,299,380 | $ 9,427,526 | $ 10,908,856 | $ 34,555,691 | |||||||||||||||||||||||||||||||||||||
Dividends | $ 705,596 | $ 1,976,511 | $ 3,270,291 | $ 3,968,187 | 7,459,393 | $ 11,701,828 | $ 10,585,519 | ||||||||||||||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 23.03 | $ 21.01 | $ 26.05 | $ 26.05 | $ 21.01 | $ 30.48 | $ 24.61 | $ 21.01 | $ 21.01 | $ 30 | |||||||||||||||||||||||||||||||
Repurchases of common stock | $ 17,576,261 | $ 12,145,903 | |||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 31,096,403 | 31,096,403 | |||||||||||||||||||||||||||||||||||||||
Proceeds from sale of real estate investments | 0 | ||||||||||||||||||||||||||||||||||||||||
Repayments of unsecured credit facility | $ 9,000,000 | $ 0 | $ 6,000,000 | $ 13,869,000 | |||||||||||||||||||||||||||||||||||||
Class R OP Units | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Stock split, conversion ratio | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 358,670 | 358,670 | |||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued, period | 3 years | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, diluted EPS threshold | $ / shares | $ 1.05 | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units outstanding (in shares) | shares | 360,000 | ||||||||||||||||||||||||||||||||||||||||
Class R OP Units | Mr. Halfacre | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 120,000 | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued, period | 3 years | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units outstanding (in shares) | shares | 210,667 | ||||||||||||||||||||||||||||||||||||||||
Class R OP Units | Mr. Pacini | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued, period | 3 years | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units outstanding (in shares) | shares | 33,333 | ||||||||||||||||||||||||||||||||||||||||
Class R OP Units | Employees of Company | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 348,000 | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units outstanding (in shares) | shares | 116,000 | ||||||||||||||||||||||||||||||||||||||||
Class R OP Units, Future Compensation | Mr. Halfacre | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 512,000 | ||||||||||||||||||||||||||||||||||||||||
Class R OP Units, Future Compensation | Mr. Pacini | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 100,000 | ||||||||||||||||||||||||||||||||||||||||
Credit Facility | New Credit Facility | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 22,000,000 | ||||||||||||||||||||||||||||||||||||||||
Amount borrowed under the credit facility | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||
Debt origination fees paid | $ 77,000 | ||||||||||||||||||||||||||||||||||||||||
Line of credit facility, unused commitment fee percentage | 0.15% | ||||||||||||||||||||||||||||||||||||||||
Minimum debt service coverage ratio | 125.00% | ||||||||||||||||||||||||||||||||||||||||
Minimum tangible NAV | $ 120,000,000 | ||||||||||||||||||||||||||||||||||||||||
Credit Facility | New Credit Facility | Prime Rate | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Basis spread on variable rate ( as a percent) | 1.00% | ||||||||||||||||||||||||||||||||||||||||
Credit Facility | Revolving Line of Credit Due by September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Repayments of unsecured credit facility | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||
Unsecured Credit Facility | Unsecured Debt | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 12,000,000 | ||||||||||||||||||||||||||||||||||||||||
Repayments of unsecured credit facility | 6,000,000 | $ 6,000,000 | |||||||||||||||||||||||||||||||||||||||
Unsecured Credit Facility | Unsecured Debt | Prime Rate | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Basis spread on variable rate ( as a percent) | 1.00% | ||||||||||||||||||||||||||||||||||||||||
Unsecured Credit Facility | Unsecured Debt | Loans, Mature on October 15, 2021 | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||
DRP | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 30.48 | ||||||||||||||||||||||||||||||||||||||||
Minimum | Unsecured Credit Facility | Unsecured Debt | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Line of credit facility, interest rate during period | 5.50% | 4.75% | |||||||||||||||||||||||||||||||||||||||
Retail | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | 13,714,188 | ||||||||||||||||||||||||||||||||||||||||
Retail | Chevron Gas Station, Roseville | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 4,050,000 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of real estate investments | 3,914,909 | ||||||||||||||||||||||||||||||||||||||||
Retail | EcoThrift | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 5,375,300 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of real estate investments | 2,684,225 | ||||||||||||||||||||||||||||||||||||||||
Retail | Chevron Gas Station, San Jose | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 4,288,888 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of real estate investments | 4,054,327 | ||||||||||||||||||||||||||||||||||||||||
IPO and Over-Allotment Option | MACS | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Expected consideration to be raised | $ 115,000,000 | ||||||||||||||||||||||||||||||||||||||||
IPO | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ 30,000,000 | ||||||||||||||||||||||||||||||||||||||||
IPO | MACS | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Expected consideration to be raised | 100,000,000 | ||||||||||||||||||||||||||||||||||||||||
Escrow deposited for MACS | 4,500,000 | ||||||||||||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Stock split, conversion ratio | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Common stock (in usd per share) | $ / shares | $ 0.001 | $ 0.003 | $ 0.003 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||||||||||||||
Common stock subscriptions | $ 800,000,000 | ||||||||||||||||||||||||||||||||||||||||
Share repurchase program, minimum holding period | 6 months | 3 months | |||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for less than two years | 98.00% | ||||||||||||||||||||||||||||||||||||||||
Percentage of NAV shares held for at least two years | 100.00% | ||||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for less than one year | 97.00% | 97.00% | |||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for one to two years | 98.00% | 98.00% | |||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for two to three years | 99.00% | 99.00% | |||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for at least three years | 100.00% | 100.00% | |||||||||||||||||||||||||||||||||||||||
Minimum share value | $ 1,000 | $ 500 | $ 500 | $ 500 | $ 500 | ||||||||||||||||||||||||||||||||||||
Class C | DRP | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | 75,000,000 | ||||||||||||||||||||||||||||||||||||||||
Class C | Follow-on Offering | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ 600,547,672 | $ 725,000,000 | |||||||||||||||||||||||||||||||||||||||
Class C | 2021 DRP Offering | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ 100,000,000 | ||||||||||||||||||||||||||||||||||||||||
Class S | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock (in usd per share) | $ / shares | $ 0.001 | 0.003 | $ 0.003 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||||||||||||||
Minimum share value | $ 1,000 | $ 500 | $ 500 | ||||||||||||||||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Stock split, conversion ratio | 0.3333 | ||||||||||||||||||||||||||||||||||||||||
Dividends | $ 650,167 | $ 620,788 | $ 695,768 | ||||||||||||||||||||||||||||||||||||||
Distributions declared per share per day (in usd per share) | $ / shares | $ 0.00287670 | $ 0.00287670 | $ 0.00287670 | $ 0.00287670 | |||||||||||||||||||||||||||||||||||||
Annualized distribution rate (in usd per share) | $ / shares | $ 1.05 | $ 1.05 | $ 1.05 | $ 1.05 | |||||||||||||||||||||||||||||||||||||
Percentage of NAV per share | 4.30% | 4.56% | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 24.61 | $ 23.03 | $ 21.01 | $ 23.03 | $ 21.01 | $ 23.03 | $ 26.05 | ||||||||||||||||||||||||||||||||||
Subsequent Event | Class R OP Units | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Other ownership interests, conversion ratio | 1 | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, conversion ratio, diluted EPS threshold | 0.4 | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, diluted EPS threshold | $ / shares | $ 1.05 | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units outstanding (in shares) | shares | 360,000 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Class R OP Units | Mr. Halfacre | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 120,000 | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued, period | 3 years | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units outstanding (in shares) | shares | 210,667 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Class R OP Units | Mr. Pacini | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 100,000 | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued, period | 3 years | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units outstanding (in shares) | shares | 33,333 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Class R OP Units | Employees of Company | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 348,000 | ||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units outstanding (in shares) | shares | 116,000 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Class R OP Units, Future Compensation | Mr. Halfacre | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Other ownership interests, units issued (in shares) | shares | 512,000 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Credit Facility | New Credit Facility | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 22,000,000 | ||||||||||||||||||||||||||||||||||||||||
Amount borrowed under the credit facility | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||
Line of credit facility, interest rate during period | 4.75% | ||||||||||||||||||||||||||||||||||||||||
Debt origination fees paid | $ 77,000 | ||||||||||||||||||||||||||||||||||||||||
Line of credit facility, unused commitment fee percentage | 0.15% | ||||||||||||||||||||||||||||||||||||||||
Minimum debt service coverage ratio | 125.00% | ||||||||||||||||||||||||||||||||||||||||
Minimum tangible NAV | $ 120,000,000 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Credit Facility | New Credit Facility | Prime Rate | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Basis spread on variable rate ( as a percent) | 1.00% | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Credit Facility | Revolving Line of Credit Due by September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Repayments of unsecured credit facility | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | DRP | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Dividends | $ 352,525 | $ 386,841 | $ 391,866 | ||||||||||||||||||||||||||||||||||||||
Subsequent Event | GSA (MSHA) | Swap | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Derivative, cost of hedge net of cash received | $ 9,900 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Retail | Dollar General, Castalia and Lakeside | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Operating lease, lease incentives, free rent period | 1 month | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Retail | Dollar General, Lakeside | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Operating lease minimum annual rents | $ 6,753 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Retail | Dollar General, Castalia | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Operating lease minimum annual rents | $ 6,610 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Retail | Chevron Gas Station, Roseville | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | 4,050,000 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of real estate investments | $ 3,914,909 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Retail | EcoThrift | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | 5,375,300 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of real estate investments | $ 2,684,225 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Retail | Chevron Gas Station, San Jose | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | 4,288,888 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of real estate investments | $ 4,055,657 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Office | Northrop Grumman | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Tenant improvements for operating lease extension | $ 1,150,000 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | IPO and Over-Allotment Option | MACS | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Expected consideration to be raised | 115,000,000 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | IPO | MACS | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Expected consideration to be raised | 100,000,000 | ||||||||||||||||||||||||||||||||||||||||
Escrow deposited for MACS | $ 4,500,000 | ||||||||||||||||||||||||||||||||||||||||
Warrants expected to be purchased (in shares) | shares | 9,000,000 | ||||||||||||||||||||||||||||||||||||||||
Number of securities to be purchased by each warrant (in shares) | shares | 0.5 | ||||||||||||||||||||||||||||||||||||||||
Warrants exercise price (in usd per share) | $ / shares | $ 11.50 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Tenant Brokers | Office | Northrop Grumman | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Leasing commission paid | 128,538 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Northrop Grumman | Office | Northrop Grumman | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Leasing commission paid | $ 128,538 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | MVF | IPO and Over-Allotment Option | MACS | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock issued in transaction (in shares) | shares | 2,875,000 | ||||||||||||||||||||||||||||||||||||||||
Amount of stock offerings | $ 25,000 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | MVF | Over-Allotment Option | MACS | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock issued in transaction (in shares) | shares | 375,000 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | MVF | IPO | MACS | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Ownership percentage after stock offerings | 20.00% | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Class C | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock (in usd per share) | $ / shares | $ 0.001 | $ 0.003 | $ 0.003 | ||||||||||||||||||||||||||||||||||||||
Common stock issued in transaction (in shares) | shares | 6,748,695 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock and investor deposits | $ 199,861,618 | ||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock (in shares) | shares | 83,834 | 481,939 | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | $ 2,059,527 | $ 10,375,064 | |||||||||||||||||||||||||||||||||||||||
Share repurchase program, minimum holding period | 6 months | 90 days | |||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for less than two years | 98.00% | ||||||||||||||||||||||||||||||||||||||||
Percentage of NAV shares held for at least two years | 100.00% | ||||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for less than one year | 97.00% | 97.00% | |||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for one to two years | 98.00% | 98.00% | |||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for two to three years | 99.00% | 99.00% | |||||||||||||||||||||||||||||||||||||||
Percentage of NAV, shares held for at least three years | 100.00% | 100.00% | |||||||||||||||||||||||||||||||||||||||
Minimum share value | $ 1,000 | $ 500 | $ 500 | ||||||||||||||||||||||||||||||||||||||
Subsequent Event | Class C | DRP | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock issued in transaction (in shares) | shares | 817,355 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock and investor deposits | $ 23,093,575 | ||||||||||||||||||||||||||||||||||||||||
Share repurchase program, minimum holding period | 6 months | 90 days | |||||||||||||||||||||||||||||||||||||||
Subsequent Event | Class C | Follow-on Offering | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ 600,547,672 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Class C | 2021 DRP Offering | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock subscriptions | $ 100,000,000 | ||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Class S | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock (in usd per share) | $ / shares | $ 0.001 | $ 0.003 | $ 0.003 | ||||||||||||||||||||||||||||||||||||||
Common stock issued in transaction (in shares) | shares | 63,876 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock and investor deposits | $ 1,935,770 | ||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock (in shares) | shares | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Minimum share value | $ 1,000 | $ 500 | $ 500 | ||||||||||||||||||||||||||||||||||||||
Subsequent Event | Class S | DRP | |||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Common stock issued in transaction (in shares) | shares | 2,172 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock and investor deposits | $ 58,606 |
SUBSEQUENT EVENTS - Mortgage No
SUBSEQUENT EVENTS - Mortgage Notes Payable (FY) (Details) - USD ($) | Jun. 30, 2021 | Mar. 05, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||
Principal amount | $ 185,758,762 | $ 182,948,438 | ||
Levins | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 2,687,293 | 2,032,332 | ||
Debt instrument, effective interest rate | 3.75% | |||
Dollar General | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 2,263,573 | 2,268,922 | ||
Debt instrument, effective interest rate | 3.65% | |||
GSA (MSHA) | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 1,743,349 | 1,752,092 | ||
Debt instrument, effective interest rate | 3.65% | |||
Mortgage Notes Payable | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 182,758,762 | 176,948,438 | $ 195,739,481 | |
Mortgage Notes Payable | Levins | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 2,032,332 | 2,079,793 | ||
Debt instrument, effective interest rate | 3.74% | |||
Mortgage Notes Payable | Levins | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 2,700,000 | |||
Debt instrument, effective interest rate | 3.75% | |||
Mortgage Notes Payable | Dollar General | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 2,268,922 | |||
Debt instrument, effective interest rate | 3.38% | |||
Mortgage Notes Payable | Dollar General | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 2,280,000 | |||
Debt instrument, effective interest rate | 3.65% | |||
Mortgage Notes Payable | PMI Preclinical | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 4,020,418 | 4,118,613 | ||
Debt instrument, effective interest rate | 3.38% | |||
Mortgage Notes Payable | PMI Preclinical | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 5,400,000 | |||
Debt instrument, effective interest rate | 3.75% | |||
Mortgage Notes Payable | GSA (MSHA) | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 1,752,092 | $ 1,796,361 | ||
Debt instrument, effective interest rate | 3.13% | |||
Mortgage Notes Payable | GSA (MSHA) | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 1,756,000 | |||
Debt instrument, effective interest rate | 3.65% |
Schedule III Real Estate Asse_2
Schedule III Real Estate Assets and Accumulated Depreciation and Amortization - Schedule of Properties (FY) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Real Estate [Line Items] | |||
Encumbrances | $ 176,948,438 | ||
Land | 65,681,176 | ||
Buildings & Improvements | 289,524,113 | ||
Total | 355,205,289 | ||
Costs Capitalized Subsequent to Acquisition | 6,665,416 | ||
Land | 65,358,321 | ||
Buildings & Improvements | 296,189,529 | ||
Total | 361,547,850 | $ 423,947,488 | $ 235,212,009 |
Accumulated Depreciation and Amortization | (32,091,211) | $ (20,411,794) | $ (10,563,664) |
Net | 329,456,639 | ||
Accredo Health | |||
Real Estate [Line Items] | |||
Encumbrances | 8,538,000 | ||
Land | 1,706,641 | ||
Buildings & Improvements | 9,003,859 | ||
Total | 10,710,500 | ||
Costs Capitalized Subsequent to Acquisition | 414,698 | ||
Land | 1,706,641 | ||
Buildings & Improvements | 9,418,557 | ||
Total | 11,125,198 | ||
Accumulated Depreciation and Amortization | (2,221,380) | ||
Net | 8,903,818 | ||
Dollar General | |||
Real Estate [Line Items] | |||
Encumbrances | 622,884 | ||
Land | 293,912 | ||
Buildings & Improvements | 1,104,202 | ||
Total | 1,398,114 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 293,912 | ||
Buildings & Improvements | 1,104,202 | ||
Total | 1,398,114 | ||
Accumulated Depreciation and Amortization | (166,006) | ||
Net | 1,232,108 | ||
Dollar General | |||
Real Estate [Line Items] | |||
Encumbrances | 627,992 | ||
Land | 212,036 | ||
Buildings & Improvements | 1,472,393 | ||
Total | 1,684,429 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 212,036 | ||
Buildings & Improvements | 1,472,393 | ||
Total | 1,684,429 | ||
Accumulated Depreciation and Amortization | (212,451) | ||
Net | 1,471,978 | ||
Dollar General | |||
Real Estate [Line Items] | |||
Encumbrances | 627,992 | ||
Land | 217,912 | ||
Buildings & Improvements | 1,088,678 | ||
Total | 1,306,590 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 217,912 | ||
Buildings & Improvements | 1,088,678 | ||
Total | 1,306,590 | ||
Accumulated Depreciation and Amortization | (159,501) | ||
Net | 1,147,089 | ||
Dollar General | |||
Real Estate [Line Items] | |||
Encumbrances | 622,884 | ||
Land | 283,578 | ||
Buildings & Improvements | 1,002,457 | ||
Total | 1,286,035 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 283,578 | ||
Buildings & Improvements | 1,002,457 | ||
Total | 1,286,035 | ||
Accumulated Depreciation and Amortization | (152,925) | ||
Net | 1,133,110 | ||
Dollar General | |||
Real Estate [Line Items] | |||
Encumbrances | 622,884 | ||
Land | 176,515 | ||
Buildings & Improvements | 1,037,214 | ||
Total | 1,213,729 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 176,515 | ||
Buildings & Improvements | 1,037,214 | ||
Total | 1,213,729 | ||
Accumulated Depreciation and Amortization | (156,949) | ||
Net | 1,056,780 | ||
Dollar General | |||
Real Estate [Line Items] | |||
Encumbrances | 622,884 | ||
Land | 154,676 | ||
Buildings & Improvements | 1,033,818 | ||
Total | 1,188,494 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 154,676 | ||
Buildings & Improvements | 1,033,818 | ||
Total | 1,188,494 | ||
Accumulated Depreciation and Amortization | (152,492) | ||
Net | 1,036,002 | ||
Dana | |||
Real Estate [Line Items] | |||
Encumbrances | 4,466,865 | ||
Land | 1,290,863 | ||
Buildings & Improvements | 8,312,917 | ||
Total | 9,603,780 | ||
Costs Capitalized Subsequent to Acquisition | (1,946,609) | ||
Land | 968,007 | ||
Buildings & Improvements | 6,366,308 | ||
Total | 7,334,315 | ||
Accumulated Depreciation and Amortization | (1,835,800) | ||
Net | 5,498,515 | ||
Northrop Grumman | Office | |||
Real Estate [Line Items] | |||
Encumbrances | 5,518,589 | ||
Land | 1,191,024 | ||
Buildings & Improvements | 12,533,166 | ||
Total | 13,724,190 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 1,191,024 | ||
Buildings & Improvements | 12,533,166 | ||
Total | 13,724,190 | ||
Accumulated Depreciation and Amortization | (2,968,985) | ||
Net | 10,755,205 | ||
exp US Services | |||
Real Estate [Line Items] | |||
Encumbrances | 3,321,931 | ||
Land | 785,801 | ||
Buildings & Improvements | 5,522,567 | ||
Total | 6,308,368 | ||
Costs Capitalized Subsequent to Acquisition | 136,548 | ||
Land | 785,801 | ||
Buildings & Improvements | 5,659,115 | ||
Total | 6,444,916 | ||
Accumulated Depreciation and Amortization | (833,278) | ||
Net | 5,611,638 | ||
Wyndham | |||
Real Estate [Line Items] | |||
Encumbrances | 5,607,000 | ||
Land | 4,144,069 | ||
Buildings & Improvements | 5,972,433 | ||
Total | 10,116,502 | ||
Costs Capitalized Subsequent to Acquisition | 959,213 | ||
Land | 4,144,069 | ||
Buildings & Improvements | 6,931,646 | ||
Total | 11,075,715 | ||
Accumulated Depreciation and Amortization | (1,170,222) | ||
Net | 9,905,493 | ||
Williams-Sonoma | |||
Real Estate [Line Items] | |||
Encumbrances | 4,438,200 | ||
Land | 3,546,744 | ||
Buildings & Improvements | 4,028,821 | ||
Total | 7,575,565 | ||
Costs Capitalized Subsequent to Acquisition | 1,054,532 | ||
Land | 3,546,745 | ||
Buildings & Improvements | 5,083,353 | ||
Total | 8,630,098 | ||
Accumulated Depreciation and Amortization | (1,058,455) | ||
Net | 7,571,643 | ||
Omnicare | |||
Real Estate [Line Items] | |||
Encumbrances | 4,193,171 | ||
Land | 800,772 | ||
Buildings & Improvements | 6,523,599 | ||
Total | 7,324,371 | ||
Costs Capitalized Subsequent to Acquisition | 219,818 | ||
Land | 800,772 | ||
Buildings & Improvements | 6,743,417 | ||
Total | 7,544,189 | ||
Accumulated Depreciation and Amortization | (832,474) | ||
Net | 6,711,715 | ||
EMCOR | |||
Real Estate [Line Items] | |||
Encumbrances | 2,811,539 | ||
Land | 427,589 | ||
Buildings & Improvements | 5,996,509 | ||
Total | 6,424,098 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 427,589 | ||
Buildings & Improvements | 5,996,509 | ||
Total | 6,424,098 | ||
Accumulated Depreciation and Amortization | (604,163) | ||
Net | 5,819,935 | ||
Husqvarna | |||
Real Estate [Line Items] | |||
Encumbrances | 6,379,182 | ||
Land | 974,663 | ||
Buildings & Improvements | 11,879,485 | ||
Total | 12,854,148 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 974,663 | ||
Buildings & Improvements | 11,879,485 | ||
Total | 12,854,148 | ||
Accumulated Depreciation and Amortization | (1,113,651) | ||
Net | 11,740,497 | ||
AvAir | |||
Real Estate [Line Items] | |||
Encumbrances | 19,950,000 | ||
Land | 3,493,673 | ||
Buildings & Improvements | 23,864,227 | ||
Total | 27,357,900 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 3,493,673 | ||
Buildings & Improvements | 23,864,227 | ||
Total | 27,357,900 | ||
Accumulated Depreciation and Amortization | (2,111,134) | ||
Net | 25,246,766 | ||
3M | |||
Real Estate [Line Items] | |||
Encumbrances | 8,166,000 | ||
Land | 758,780 | ||
Buildings & Improvements | 16,360,400 | ||
Total | 17,119,180 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 758,780 | ||
Buildings & Improvements | 16,360,400 | ||
Total | 17,119,180 | ||
Accumulated Depreciation and Amortization | (3,476,588) | ||
Net | 13,642,592 | ||
Cummins | |||
Real Estate [Line Items] | |||
Encumbrances | 8,332,200 | ||
Land | 3,347,960 | ||
Buildings & Improvements | 12,654,529 | ||
Total | 16,002,489 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 3,347,960 | ||
Buildings & Improvements | 12,654,529 | ||
Total | 16,002,489 | ||
Accumulated Depreciation and Amortization | (2,151,938) | ||
Net | 13,850,551 | ||
Northrop Grumman Parcel | Land | |||
Real Estate [Line Items] | |||
Encumbrances | 0 | ||
Land | 329,410 | ||
Buildings & Improvements | 0 | ||
Total | 329,410 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 329,410 | ||
Buildings & Improvements | 0 | ||
Total | 329,410 | ||
Accumulated Depreciation and Amortization | 0 | ||
Net | 329,410 | ||
Texas Health | |||
Real Estate [Line Items] | |||
Encumbrances | 4,363,203 | ||
Land | 1,827,914 | ||
Buildings & Improvements | 5,862,010 | ||
Total | 7,689,924 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 1,827,914 | ||
Buildings & Improvements | 5,862,010 | ||
Total | 7,689,924 | ||
Accumulated Depreciation and Amortization | (681,341) | ||
Net | 7,008,583 | ||
Bon Secours | |||
Real Estate [Line Items] | |||
Encumbrances | 5,180,552 | ||
Land | 1,658,659 | ||
Buildings & Improvements | 9,184,248 | ||
Total | 10,842,907 | ||
Costs Capitalized Subsequent to Acquisition | 346,200 | ||
Land | 1,658,659 | ||
Buildings & Improvements | 9,530,448 | ||
Total | 11,189,107 | ||
Accumulated Depreciation and Amortization | (978,335) | ||
Net | 10,210,772 | ||
Costco | |||
Real Estate [Line Items] | |||
Encumbrances | 18,850,000 | ||
Land | 8,202,915 | ||
Buildings & Improvements | 21,825,853 | ||
Total | 30,028,768 | ||
Costs Capitalized Subsequent to Acquisition | 67,165 | ||
Land | 8,202,915 | ||
Buildings & Improvements | 21,893,018 | ||
Total | 30,095,933 | ||
Accumulated Depreciation and Amortization | (2,654,329) | ||
Net | 27,441,604 | ||
Taylor Fresh Foods | |||
Real Estate [Line Items] | |||
Encumbrances | 12,350,000 | ||
Land | 4,312,016 | ||
Buildings & Improvements | 32,776,370 | ||
Total | 37,088,386 | ||
Costs Capitalized Subsequent to Acquisition | 0 | ||
Land | 4,312,016 | ||
Buildings & Improvements | 32,776,370 | ||
Total | 37,088,386 | ||
Accumulated Depreciation and Amortization | (1,597,022) | ||
Net | 35,491,364 | ||
Levins | |||
Real Estate [Line Items] | |||
Encumbrances | 2,032,332 | ||
Land | 1,404,863 | ||
Buildings & Improvements | 3,204,715 | ||
Total | 4,609,578 | ||
Costs Capitalized Subsequent to Acquisition | 41,739 | ||
Land | 1,404,863 | ||
Buildings & Improvements | 3,246,454 | ||
Total | 4,651,317 | ||
Accumulated Depreciation and Amortization | (220,609) | ||
Net | 4,430,708 | ||
Dollar General | |||
Real Estate [Line Items] | |||
Encumbrances | 2,268,922 | ||
Land | 1,099,458 | ||
Buildings & Improvements | 3,824,688 | ||
Total | 4,924,146 | ||
Costs Capitalized Subsequent to Acquisition | 237,198 | ||
Land | 1,099,458 | ||
Buildings & Improvements | 4,061,886 | ||
Total | 5,161,344 | ||
Accumulated Depreciation and Amortization | (147,132) | ||
Net | 5,014,212 | ||
PMI Preclinical | |||
Real Estate [Line Items] | |||
Encumbrances | 4,020,418 | ||
Land | 4,774,497 | ||
Buildings & Improvements | 5,243,803 | ||
Total | 10,018,300 | ||
Costs Capitalized Subsequent to Acquisition | 62,099 | ||
Land | 4,774,497 | ||
Buildings & Improvements | 5,305,902 | ||
Total | 10,080,399 | ||
Accumulated Depreciation and Amortization | (204,321) | ||
Net | 9,876,078 | ||
GSA (MSHA) | |||
Real Estate [Line Items] | |||
Encumbrances | 1,752,092 | ||
Land | 399,062 | ||
Buildings & Improvements | 2,869,790 | ||
Total | 3,268,852 | ||
Costs Capitalized Subsequent to Acquisition | 86,531 | ||
Land | 399,062 | ||
Buildings & Improvements | 2,956,321 | ||
Total | 3,355,383 | ||
Accumulated Depreciation and Amortization | (138,515) | ||
Net | 3,216,868 | ||
PreK Education | |||
Real Estate [Line Items] | |||
Encumbrances | 5,037,846 | ||
Land | 963,044 | ||
Buildings & Improvements | 11,411,964 | ||
Total | 12,375,008 | ||
Costs Capitalized Subsequent to Acquisition | 520,206 | ||
Land | 963,044 | ||
Buildings & Improvements | 11,932,170 | ||
Total | 12,895,214 | ||
Accumulated Depreciation and Amortization | (599,428) | ||
Net | 12,295,786 | ||
Dollar Tree | |||
Real Estate [Line Items] | |||
Encumbrances | 0 | ||
Land | 159,829 | ||
Buildings & Improvements | 1,020,053 | ||
Total | 1,179,882 | ||
Costs Capitalized Subsequent to Acquisition | 213,783 | ||
Land | 159,829 | ||
Buildings & Improvements | 1,233,836 | ||
Total | 1,393,665 | ||
Accumulated Depreciation and Amortization | (70,911) | ||
Net | 1,322,754 | ||
Solar Turbines | |||
Real Estate [Line Items] | |||
Encumbrances | 2,777,552 | ||
Land | 2,483,960 | ||
Buildings & Improvements | 4,722,578 | ||
Total | 7,206,538 | ||
Costs Capitalized Subsequent to Acquisition | 210,729 | ||
Land | 2,483,960 | ||
Buildings & Improvements | 4,933,307 | ||
Total | 7,417,267 | ||
Accumulated Depreciation and Amortization | (338,232) | ||
Net | 7,079,035 | ||
Wood Group | |||
Real Estate [Line Items] | |||
Encumbrances | 3,397,371 | ||
Land | 3,461,256 | ||
Buildings & Improvements | 6,662,918 | ||
Total | 10,124,174 | ||
Costs Capitalized Subsequent to Acquisition | 73,339 | ||
Land | 3,461,256 | ||
Buildings & Improvements | 6,736,257 | ||
Total | 10,197,513 | ||
Accumulated Depreciation and Amortization | (565,017) | ||
Net | 9,632,496 | ||
ITW Rippey | |||
Real Estate [Line Items] | |||
Encumbrances | 3,039,777 | ||
Land | 787,945 | ||
Buildings & Improvements | 6,392,126 | ||
Total | 7,180,071 | ||
Costs Capitalized Subsequent to Acquisition | 195,459 | ||
Land | 787,945 | ||
Buildings & Improvements | 6,587,585 | ||
Total | 7,375,530 | ||
Accumulated Depreciation and Amortization | (303,219) | ||
Net | 7,072,311 | ||
Dollar General, Bakersfield | |||
Real Estate [Line Items] | |||
Encumbrances | 599,756 | ||
Land | 103,838 | ||
Buildings & Improvements | 1,114,728 | ||
Total | 1,218,566 | ||
Costs Capitalized Subsequent to Acquisition | 139,468 | ||
Land | 103,838 | ||
Buildings & Improvements | 1,254,196 | ||
Total | 1,358,034 | ||
Accumulated Depreciation and Amortization | (50,969) | ||
Net | 1,307,065 | ||
Gap | |||
Real Estate [Line Items] | |||
Encumbrances | 3,569,990 | ||
Land | 2,076,754 | ||
Buildings & Improvements | 5,715,144 | ||
Total | 7,791,898 | ||
Costs Capitalized Subsequent to Acquisition | 946,755 | ||
Land | 2,076,754 | ||
Buildings & Improvements | 6,661,899 | ||
Total | 8,738,653 | ||
Accumulated Depreciation and Amortization | (479,306) | ||
Net | 8,259,347 | ||
L-3 Communications | |||
Real Estate [Line Items] | |||
Encumbrances | 5,185,929 | ||
Land | 3,552,878 | ||
Buildings & Improvements | 8,099,339 | ||
Total | 11,652,217 | ||
Costs Capitalized Subsequent to Acquisition | 433,675 | ||
Land | 3,552,878 | ||
Buildings & Improvements | 8,533,014 | ||
Total | 12,085,892 | ||
Accumulated Depreciation and Amortization | (470,823) | ||
Net | 11,615,069 | ||
Sutter Health | |||
Real Estate [Line Items] | |||
Encumbrances | 13,879,655 | ||
Land | 2,443,240 | ||
Buildings & Improvements | 26,690,356 | ||
Total | 29,133,596 | ||
Costs Capitalized Subsequent to Acquisition | 2,038,069 | ||
Land | 2,443,240 | ||
Buildings & Improvements | 28,728,425 | ||
Total | 31,171,665 | ||
Accumulated Depreciation and Amortization | (1,080,349) | ||
Net | 30,091,316 | ||
Walgreens | |||
Real Estate [Line Items] | |||
Encumbrances | 3,172,846 | ||
Land | 1,832,430 | ||
Buildings & Improvements | 3,512,156 | ||
Total | 5,344,586 | ||
Costs Capitalized Subsequent to Acquisition | 214,801 | ||
Land | 1,832,430 | ||
Buildings & Improvements | 3,726,957 | ||
Total | 5,559,387 | ||
Accumulated Depreciation and Amortization | (132,961) | ||
Net | $ 5,426,426 |
Schedule III Real Estate Asse_3
Schedule III Real Estate Assets and Accumulated Depreciation and Amortization - Narrative (FY) (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Real Estate [Line Items] | |
Aggregate cost of real estate for federal income tax purposes (unaudited) | $ 328,029,000 |
Tenant Improvement | |
Real Estate [Line Items] | |
Estimated useful lives (in years) | 15 years |
Building Improvements | |
Real Estate [Line Items] | |
Estimated useful lives (in years) | 15 years |
Minimum | Building | |
Real Estate [Line Items] | |
Estimated useful lives (in years) | 10 years |
Maximum | Building | |
Real Estate [Line Items] | |
Estimated useful lives (in years) | 48 years |
Maximum | Tenant Improvement | |
Real Estate [Line Items] | |
Estimated useful lives (in years) | 15 years |
Schedule III Real Estate Asse_4
Schedule III Real Estate Assets and Accumulated Depreciation and Amortization - Accumulated Depreciation (FY) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Real estate investments: | ||
Balance at beginning of year | $ 423,947,488 | $ 235,212,009 |
Acquisitions | 0 | 185,446,483 |
Improvements to real estate | 673,631 | 3,288,996 |
Dispositions | (26,575,397) | 0 |
Held for sale | (26,230,247) | 0 |
Impairment of real estate | (10,267,625) | 0 |
Balance at end of year | 361,547,850 | 423,947,488 |
Accumulated depreciation and amortization: | ||
Balance at beginning of year | (20,411,794) | (10,563,664) |
Depreciation and amortization | (15,759,199) | (9,848,130) |
Dispositions | 2,435,274 | 0 |
Held for sale | 1,644,508 | 0 |
Balance at end of year | $ (32,091,211) | $ (20,411,794) |
BUSINESS AND ORGANIZATION - Nar
BUSINESS AND ORGANIZATION - Narrative (Q2) (Details) | Feb. 01, 2021USD ($)$ / shares | Jan. 31, 2021USD ($)$ / shares | Dec. 31, 2019property$ / sharesshares | Aug. 11, 2017shares | Aug. 31, 2017shares | Jun. 30, 2021propertyft²$ / sharesshares | Dec. 31, 2020USD ($)propertyleaseft²$ / sharesshares | Dec. 31, 2020USD ($)propertyleaseft²$ / sharesshares | Dec. 30, 2019 | Dec. 31, 2020USD ($)propertyleaseft²$ / sharesshares | Aug. 04, 2021$ / shares | Jul. 26, 2021$ / shares | May 05, 2021$ / shares | Mar. 31, 2021ft² | Mar. 25, 2021$ / shares | Mar. 24, 2021USD ($) | Feb. 25, 2021$ / shares | Jan. 27, 2021USD ($)$ / shares | Jan. 22, 2021USD ($)$ / shares | Jun. 30, 2020property | Jun. 01, 2020$ / shares | May 20, 2020$ / shares | Feb. 01, 2020$ / shares | Dec. 23, 2019USD ($) | Jan. 14, 2019$ / shares | Jan. 19, 2018$ / shares | Jan. 18, 2018$ / shares | Dec. 31, 2016USD ($) | Jul. 19, 2016USD ($) | Jul. 15, 2015USD ($) |
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Issued common stock (in shares) | shares | 450,000,000 | 450,000,000 | 450,000,000 | 450,000,000 | ||||||||||||||||||||||||||
Preferred stock, shares authorized (in shares) | shares | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||||||||||||||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||||||
Number of square feet of aggregate leasable space (in square foot) | ft² | 2,300,000 | 118,651 | 118,651 | 118,651 | ||||||||||||||||||||||||||
Number of real estate properties | property | 38 | 36 | 36 | 36 | ||||||||||||||||||||||||||
Number of real estate properties, held-for-sale | property | 1 | 2 | 2 | 2 | ||||||||||||||||||||||||||
Number of real estate properties acquired | property | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 30.48 | $ 26.05 | $ 21.01 | $ 21.01 | $ 21.01 | $ 24.61 | $ 23.03 | $ 21.01 | $ 21.01 | $ 30 | ||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 23.03 | $ 26.05 | $ 24.61 | $ 23.03 | $ 21.01 | $ 23.03 | $ 21.01 | |||||||||||||||||||||||
REIT I | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 20 | 14 | 14 | 14 | 14 | |||||||||||||||||||||||||
Tenant-in-common | Real Estate Investment | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Ownership percentage | 72.70% | 72.70% | 72.70% | 72.70% | ||||||||||||||||||||||||||
Common Class S | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Common stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||||||||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.003 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||||
Stock repurchase program, minimum share value | $ 1,000 | $ 500 | $ 500 | $ 500 | ||||||||||||||||||||||||||
Issuance of common stock (in shares) | shares | 33,333,333 | 33,333,333 | 63,711 | |||||||||||||||||||||||||||
Common Class S | Subsequent Event | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.003 | ||||||||||||||||||||||||||||
Stock repurchase program, minimum share value | $ 1,000 | $ 500 | ||||||||||||||||||||||||||||
Common Class C | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Common stock, shares authorized (in shares) | shares | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||||||||||||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.003 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||||
Common stock subscriptions | $ 800,000,000 | |||||||||||||||||||||||||||||
Stock repurchase program, minimum share value | $ 1,000 | $ 500 | $ 500 | $ 500 | $ 500 | $ 500 | ||||||||||||||||||||||||
Shares repurchase period | 6 months | 3 months | ||||||||||||||||||||||||||||
Percentage of net asset value, shares held less than two years | 98.00% | |||||||||||||||||||||||||||||
Percentage of net asset value, shares held at least two years | 100.00% | |||||||||||||||||||||||||||||
Percentage of net asset value, shares held less than one year | 97.00% | 97.00% | 97.00% | |||||||||||||||||||||||||||
Percentage of net asset value, shares held one to two years | 98.00% | 98.00% | 98.00% | |||||||||||||||||||||||||||
Percentage of net asset value, shares held two to three years | 99.00% | 99.00% | 99.00% | |||||||||||||||||||||||||||
Percentage of net asset value, shares held at least three years | 100.00% | 100.00% | 100.00% | |||||||||||||||||||||||||||
Common Class C | Subsequent Event | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.003 | ||||||||||||||||||||||||||||
Stock repurchase program, minimum share value | $ 1,000 | $ 500 | ||||||||||||||||||||||||||||
Shares repurchase period | 6 months | 90 days | ||||||||||||||||||||||||||||
Percentage of net asset value, shares held less than two years | 98.00% | |||||||||||||||||||||||||||||
Percentage of net asset value, shares held at least two years | 100.00% | |||||||||||||||||||||||||||||
Percentage of net asset value, shares held less than one year | 97.00% | |||||||||||||||||||||||||||||
Percentage of net asset value, shares held one to two years | 98.00% | |||||||||||||||||||||||||||||
Percentage of net asset value, shares held two to three years | 99.00% | |||||||||||||||||||||||||||||
Percentage of net asset value, shares held at least three years | 100.00% | |||||||||||||||||||||||||||||
Distribution Reinvestment Plan | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 30.48 | |||||||||||||||||||||||||||||
Share price (in usd per share) | $ / shares | $ 30.81 | $ 30.15 | $ 30 | |||||||||||||||||||||||||||
Distribution Reinvestment Plan | Common Class C | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Common stock subscriptions | 75,000,000 | |||||||||||||||||||||||||||||
Distribution Reinvestment Plan | Common Class C | Subsequent Event | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Shares repurchase period | 6 months | 90 days | ||||||||||||||||||||||||||||
IPO and Over-Allotment Option | Modiv Acquisition Corp. | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Expected consideration on transaction | $ 115,000,000 | |||||||||||||||||||||||||||||
IPO and Over-Allotment Option | Modiv Acquisition Corp. | Subsequent Event | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Expected consideration on transaction | 115,000,000 | |||||||||||||||||||||||||||||
Primary Offering | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Common stock subscriptions | $ 30,000,000 | |||||||||||||||||||||||||||||
Primary Offering | Modiv Acquisition Corp. | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Expected consideration on transaction | 100,000,000 | |||||||||||||||||||||||||||||
Deposits assets | 4,500,000 | |||||||||||||||||||||||||||||
Primary Offering | Modiv Acquisition Corp. | Subsequent Event | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Expected consideration on transaction | 100,000,000 | |||||||||||||||||||||||||||||
Deposits assets | $ 4,500,000 | |||||||||||||||||||||||||||||
Registered Offering | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Common stock subscriptions | $ 3,333,333 | |||||||||||||||||||||||||||||
Registered Offering | Common Class S | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Issuance of common stock (in shares) | shares | 2,056 | |||||||||||||||||||||||||||||
Registered Offering | Common Class C | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Issuance of common stock (in shares) | shares | 6,627,934 | |||||||||||||||||||||||||||||
Registered Offering | Distribution Reinvestment Plan | Common Class C | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Issuance of common stock (in shares) | shares | 790,479 | |||||||||||||||||||||||||||||
Follow-on Offering | Common Class C | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Common stock subscriptions | $ 600,547,672 | $ 725,000,000 | ||||||||||||||||||||||||||||
Follow-on Offering | Common Class C | Subsequent Event | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Common stock subscriptions | $ 600,547,672 | |||||||||||||||||||||||||||||
2021 Distribution Reinvestment Plan Offering | Common Class C | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Common stock subscriptions | $ 100,000,000 | |||||||||||||||||||||||||||||
2021 Distribution Reinvestment Plan Offering | Common Class C | Subsequent Event | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Common stock subscriptions | $ 100,000,000 | |||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Number of square feet of aggregate leasable space (in square foot) | ft² | 42,896 | |||||||||||||||||||||||||||||
Number of real estate properties | property | 12 | 11 | 11 | 11 | ||||||||||||||||||||||||||
Number of real estate properties, held-for-sale | 1 | 4 | 4 | 4 | ||||||||||||||||||||||||||
Retail | REIT I | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 5 | |||||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Number of real estate properties | property | 14 | 14 | 14 | 14 | ||||||||||||||||||||||||||
Office | REIT I | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 4 | |||||||||||||||||||||||||||||
Industrial Property | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Number of real estate properties | property | 12 | 11 | 11 | 11 | ||||||||||||||||||||||||||
Industrial Property | REIT I | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 5 | |||||||||||||||||||||||||||||
Operating Partnership | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Ownership interest (as a percent) | 83.00% | 99.00% | ||||||||||||||||||||||||||||
Operating Partnership | Subsequent Event | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Ownership interest (as a percent) | 83.00% | |||||||||||||||||||||||||||||
BrixInvest | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Ownership interest (as a percent) | 12.00% | |||||||||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||||||||||
Business And Organization [Line Items] | ||||||||||||||||||||||||||||||
Preferred stock, shares authorized (in shares) | shares | 50,000,000 | |||||||||||||||||||||||||||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.001 |
BUSINESS AND ORGANIZATION - Net
BUSINESS AND ORGANIZATION - Net Asset Value Per Share (Q2) (Details) - $ / shares | Aug. 04, 2021 | Jul. 26, 2021 | Jun. 30, 2021 | May 05, 2021 | Mar. 25, 2021 | Feb. 25, 2021 | Feb. 01, 2021 | Jan. 27, 2021 | Jan. 22, 2021 | Dec. 31, 2020 | Jun. 01, 2020 | May 20, 2020 | Dec. 31, 2019 | Jan. 18, 2018 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||||||||
NAV Per Share (in usd per share) | $ 26.05 | $ 24.61 | $ 23.03 | $ 21.01 | $ 21.01 | $ 21.01 | $ 30.48 | $ 30 | ||||||
Subsequent Event | ||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||||||||||
NAV Per Share (in usd per share) | $ 26.05 | $ 24.61 | $ 23.03 | $ 21.01 | $ 23.03 | $ 23.03 | $ 21.01 |
SUMMARY OF SIGNIFICANT ACOUNT_8
SUMMARY OF SIGNIFICANT ACOUNTING POLICIES (Q2) (Details) | Feb. 01, 2021$ / shares | Jan. 25, 2021 | Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Jun. 30, 2020USD ($)property$ / shares | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($)property$ / shares | Dec. 31, 2020USD ($)property$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Jan. 31, 2021$ / shares |
Accounting Policies [Line Items] | |||||||||||
Conversion ratio | 0.3333 | ||||||||||
Rental income from tenant reimbursements | $ 1,703,974 | $ 1,538,586 | $ 3,395,361 | $ 3,899,505 | $ 7,028,808 | $ 4,857,794 | |||||
Impairment of real estate investment properties | (400,999) | $ 761,100 | $ 349,457 | $ 9,157,068 | (400,999) | $ 9,506,525 | $ 10,267,625 | $ 0 | |||
Number of impaired real estate properties | property | 1 | 4 | 6 | ||||||||
Net loss per share, basic and diluted (in usd per share) | $ / shares | $ (6.14) | $ (0.88) | |||||||||
Restricted cash | 2,508,471 | 129,118 | 2,508,471 | $ 129,118 | $ 113,362 | ||||||
Tenant reimbursements | 189,136 | 60,598 | 189,136 | 60,598 | $ 98,329 | ||||||
Restricted cash to fund property tax | 2,210,864 | $ 32,086 | 2,210,864 | $ 32,086 | |||||||
Northrop Grumman | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Restricted cash | 1,400,000 | 1,400,000 | |||||||||
L3Harris property | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Restricted cash | $ 1,000,000 | $ 1,000,000 | |||||||||
Class M OP Units | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Conversion ratio | 1.6667 | 1.6667 | 1 | ||||||||
Other ownership interests, units issued (in shares) | shares | 657,949.5 | 657,949.5 | |||||||||
Class P OP Units | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Conversion ratio | 1.6667 | ||||||||||
Other ownership interests, units issued (in shares) | shares | 56,029 | 56,029 | 56,029 | ||||||||
Class R OP Units | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Conversion ratio | 1 | 1 | |||||||||
Other ownership interests, units issued (in shares) | shares | 358,670 | 358,670 | |||||||||
Units forfeited (in shares) | shares | 1,330 | 1,330 | |||||||||
Class M OP Unit OR Class P OP Unit | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Conversion ratio | 1.6667 | ||||||||||
Minimum | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Intangible assets, estimated useful lives | 3 years | 3 years | |||||||||
Maximum | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Intangible assets, estimated useful lives | 5 years | 5 years | |||||||||
Common Class C | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Conversion ratio | 1 | 1 | |||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.003 | ||||
Net loss per share, basic and diluted (in usd per share) | $ / shares | (0.13) | $ (0.28) | (0.25) | $ (6.39) | |||||||
Common Class S | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.001 | 0.001 | $ 0.001 | 0.001 | $ 0.001 | $ 0.001 | $ 0.003 | ||||
Net loss per share, basic and diluted (in usd per share) | $ / shares | $ (0.13) | $ (0.28) | $ (0.25) | $ (6.39) |
REAL ESTATE INVESTMENTS, NET -
REAL ESTATE INVESTMENTS, NET - Narrative (Q2) (Details) | Feb. 12, 2021USD ($) | Jan. 29, 2021USD ($) | Jan. 07, 2021USD ($) | Dec. 31, 2020USD ($)propertystatelease | Dec. 16, 2020USD ($) | Aug. 27, 2020USD ($) | Apr. 01, 2020USD ($) | Jun. 30, 2021USD ($)propertystate | Mar. 31, 2021USD ($)lease | Dec. 31, 2020USD ($)propertystatelease | Jun. 30, 2020USD ($)property | Mar. 31, 2020USD ($)property | Apr. 30, 2020USD ($)lease | Jun. 30, 2021USD ($)propertystate | Dec. 31, 2020USD ($)propertyleasestate | Jun. 30, 2020USD ($)property | Dec. 31, 2020USD ($)propertystatelease | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) |
Real Estate [Line Items] | |||||||||||||||||||
Number of real estate properties | property | 36 | 38 | 36 | 38 | 36 | 36 | |||||||||||||
Number of states in which entity operates | state | 14 | 14 | 14 | 14 | 14 | 14 | |||||||||||||
Number of impaired real estate properties, vacant | property | 2 | 2 | 2 | 2 | 2 | ||||||||||||||
Impairment of real estate investment properties | $ (400,999) | $ 761,100 | $ 349,457 | $ 9,157,068 | $ (400,999) | $ 9,506,525 | $ 10,267,625 | $ 0 | |||||||||||
Impairment charge percentage | 2.50% | 2.50% | 0.10% | 2.20% | 2.50% | 0.10% | 2.50% | ||||||||||||
Number of real estate properties acquired | property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Number of properties disposed | property | 0 | ||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 31,096,403 | $ 31,096,403 | $ 31,096,403 | $ 31,096,403 | |||||||||||||||
Proceeds from sale of real estate investments | 0 | ||||||||||||||||||
Weighted-average remaining amortization period | 9 years 4 months 24 days | 9 years 4 months 24 days | |||||||||||||||||
Number of real estate properties identified as held-for-sale | property | 9 | ||||||||||||||||||
Number of real estate properties, held-for-sale | property | 2 | 1 | 2 | 1 | 2 | 2 | |||||||||||||
Number of real estate properties sold | 5 | 5 | |||||||||||||||||
Number of real estate properties held for investment | lease | 2 | 2 | 2 | 2 | |||||||||||||||
Real estate investment held for investment | $ 329,456,639 | $ 329,093,007 | $ 329,456,639 | $ 329,093,007 | $ 329,456,639 | $ 329,456,639 | $ 403,535,694 | ||||||||||||
Mortgages | 24 Hour Fitness | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Monthly mortgage payment | $ 32,000 | ||||||||||||||||||
Decrease in monthly mortgage payment | $ 8,000 | ||||||||||||||||||
Real Estate Investment | Tenant-in-common | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Ownership percentage | 72.70% | 72.70% | 72.70% | 72.70% | 72.70% | 72.70% | |||||||||||||
Retail | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Number of real estate properties | property | 11 | 12 | 11 | 12 | 11 | 11 | |||||||||||||
Disposal group, including discontinued operation, consideration | $ 13,714,188 | ||||||||||||||||||
Number of real estate properties identified as held-for-sale | property | 8 | ||||||||||||||||||
Number of real estate properties, held-for-sale | 4 | 1 | 4 | 1 | 4 | 4 | |||||||||||||
Number of real estate properties sold | lease | 3 | 4 | |||||||||||||||||
Retail | 24 Hour Fitness | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Impairment of real estate investment properties | $ 0 | $ 5,664,517 | $ 5,664,517 | $ 5,664,517 | |||||||||||||||
Disposal group, including discontinued operation, consideration | $ 9,052,941 | ||||||||||||||||||
Proceeds from sale of real estate investments | $ 1,324,383 | ||||||||||||||||||
Retail | Chevron Gas Station, Roseville property | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 4,050,000 | ||||||||||||||||||
Proceeds from sale of real estate investments | $ 3,914,909 | ||||||||||||||||||
Retail | EcoThrift | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 5,375,300 | ||||||||||||||||||
Proceeds from sale of real estate investments | $ 2,684,225 | ||||||||||||||||||
Retail | Chevron Gas Station, San Jose property | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Impairment of real estate investment properties | 128,867 | ||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 4,288,888 | ||||||||||||||||||
Proceeds from sale of real estate investments | $ 4,054,327 | ||||||||||||||||||
Retail | Walgreens Santa Maria and Stockbridge | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Aggregate payment of lease incentives | $ 990,000 | ||||||||||||||||||
Number of operating leases with lease incentives | lease | 2 | ||||||||||||||||||
Retail | Walgreens | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Operating leases extension | 10 years | ||||||||||||||||||
Real estate investment held for investment | $ 5,359,946 | $ 5,359,946 | |||||||||||||||||
Retail | Walgreens Stockbridge | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 5,538,462 | $ 5,538,462 | $ 5,538,462 | $ 5,538,462 | 5,538,462 | ||||||||||||||
Proceeds from sale of real estate investments | $ 5,296,356 | ||||||||||||||||||
Operating leases extension | 10 years | ||||||||||||||||||
Retail | PreK Education | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Aggregate payment of lease incentives | $ 2,000,000 | ||||||||||||||||||
Operating leases extension | 8 years | 8 years | |||||||||||||||||
Real estate investment held for investment | 12,295,786 | 12,295,786 | $ 12,295,786 | 12,295,786 | |||||||||||||||
Retail | Harley Davidson | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Impairment of real estate investment properties | $ 632,233 | $ 400,999 | $ 632,233 | ||||||||||||||||
Real estate held for sale | 11,860,000 | $ 11,860,000 | $ 12,010,919 | ||||||||||||||||
Retail | Harley Davidson | Scenario, Plan | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Proceeds from sale of real estate investments | $ 12,117,500 | ||||||||||||||||||
Real estate investment held for investment | $ 11,779,687 | $ 11,779,687 | |||||||||||||||||
Office | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Number of real estate properties | property | 14 | 14 | 14 | 14 | 14 | 14 | |||||||||||||
Industrial Property | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Number of real estate properties | property | 11 | 12 | 11 | 12 | 11 | 11 | |||||||||||||
Number of real estate properties identified as held-for-sale | property | 1 | ||||||||||||||||||
Number of real estate properties sold | lease | 1 | ||||||||||||||||||
Land | |||||||||||||||||||
Real Estate [Line Items] | |||||||||||||||||||
Number of real estate properties | property | 1 | 1 | 1 | 1 |
REAL ESTATE INVESTMENTS, NET _3
REAL ESTATE INVESTMENTS, NET - Summary of Real Estate Properties (Q2) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Real Estate [Line Items] | |||
Land, Buildings and Improvements | $ 343,899,970 | $ 337,755,793 | |
Tenant origination and absorption costs | 23,570,335 | 23,792,057 | $ 27,266,610 |
Accumulated Depreciation and Amortization | (38,377,298) | (32,091,211) | (20,411,794) |
Total Investment in Real Estate Property, Net | 329,093,007 | 329,456,639 | $ 403,535,694 |
Accredo Health | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 9,855,847 | 9,855,847 | |
Tenant origination and absorption costs | 1,269,350 | 1,269,351 | |
Accumulated Depreciation and Amortization | (2,444,918) | (2,221,380) | |
Total Investment in Real Estate Property, Net | 8,680,279 | 8,903,818 | |
Dollar General One | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,281,812 | ||
Tenant origination and absorption costs | 116,302 | ||
Accumulated Depreciation and Amortization | (186,127) | ||
Total Investment in Real Estate Property, Net | 1,211,987 | ||
Dollar General Two | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,543,776 | ||
Tenant origination and absorption costs | 140,653 | ||
Accumulated Depreciation and Amortization | (238,203) | ||
Total Investment in Real Estate Property, Net | 1,446,226 | ||
Dollar General Three | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,199,860 | ||
Tenant origination and absorption costs | 106,730 | ||
Accumulated Depreciation and Amortization | (178,835) | ||
Total Investment in Real Estate Property, Net | 1,127,755 | ||
Dollar General Four | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,174,188 | ||
Tenant origination and absorption costs | 111,847 | ||
Accumulated Depreciation and Amortization | (171,462) | ||
Total Investment in Real Estate Property, Net | 1,114,573 | ||
Dollar General Five | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,112,872 | ||
Tenant origination and absorption costs | 100,857 | ||
Accumulated Depreciation and Amortization | (175,973) | ||
Total Investment in Real Estate Property, Net | 1,037,756 | ||
Dollar General Six | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,102,086 | ||
Tenant origination and absorption costs | 86,408 | ||
Accumulated Depreciation and Amortization | (170,976) | ||
Total Investment in Real Estate Property, Net | 1,017,518 | ||
Northrop Grumman | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 12,382,991 | ||
Tenant origination and absorption costs | 1,469,737 | ||
Accumulated Depreciation and Amortization | (3,363,521) | ||
Total Investment in Real Estate Property, Net | 10,489,207 | ||
exp US Services | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 6,056,668 | 6,056,668 | |
Tenant origination and absorption costs | 388,248 | 388,248 | |
Accumulated Depreciation and Amortization | (945,261) | (833,278) | |
Total Investment in Real Estate Property, Net | 5,499,655 | 5,611,638 | |
Harley | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 12,947,054 | ||
Tenant origination and absorption costs | 0 | ||
Accumulated Depreciation and Amortization | (1,196,054) | ||
Total Investment in Real Estate Property, Net | 11,751,000 | ||
Wyndham | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 10,406,483 | 10,406,483 | |
Tenant origination and absorption costs | 669,232 | 669,232 | |
Accumulated Depreciation and Amortization | (1,347,468) | (1,170,222) | |
Total Investment in Real Estate Property, Net | 9,728,247 | 9,905,493 | |
Williams Sonoma | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 8,079,612 | 8,079,612 | |
Tenant origination and absorption costs | 550,486 | 550,486 | |
Accumulated Depreciation and Amortization | (1,214,232) | (1,058,455) | |
Total Investment in Real Estate Property, Net | 7,415,866 | 7,571,643 | |
Omnicare | Industrial Property | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 7,262,747 | 7,262,747 | |
Tenant origination and absorption costs | 281,442 | 281,442 | |
Accumulated Depreciation and Amortization | (954,774) | (832,474) | |
Total Investment in Real Estate Property, Net | 6,589,415 | 6,711,715 | |
EMCOR | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 5,960,610 | 5,960,610 | |
Tenant origination and absorption costs | 463,488 | 463,488 | |
Accumulated Depreciation and Amortization | (693,863) | (604,163) | |
Total Investment in Real Estate Property, Net | 5,730,235 | 5,819,935 | |
Husqvarna | Industrial Property | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 11,840,200 | 11,840,200 | |
Tenant origination and absorption costs | 1,013,948 | 1,013,948 | |
Accumulated Depreciation and Amortization | (1,292,198) | (1,113,651) | |
Total Investment in Real Estate Property, Net | 11,561,950 | 11,740,497 | |
AvAir | Industrial Property | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 27,357,899 | 27,357,900 | |
Tenant origination and absorption costs | 0 | 0 | |
Accumulated Depreciation and Amortization | (2,458,171) | (2,111,134) | |
Total Investment in Real Estate Property, Net | 24,899,728 | 25,246,766 | |
3M | Industrial Property | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 14,762,819 | ||
Tenant origination and absorption costs | 2,356,361 | ||
Accumulated Depreciation and Amortization | (4,099,258) | ||
Total Investment in Real Estate Property, Net | 13,019,922 | ||
Cummins | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 14,465,491 | ||
Tenant origination and absorption costs | 1,536,998 | ||
Accumulated Depreciation and Amortization | (2,549,219) | ||
Total Investment in Real Estate Property, Net | 13,453,270 | ||
Northrop Grumman Parcel | Land | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 329,410 | ||
Tenant origination and absorption costs | 0 | ||
Accumulated Depreciation and Amortization | 0 | ||
Total Investment in Real Estate Property, Net | 329,410 | ||
Texas Health | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 6,976,703 | 6,976,703 | |
Tenant origination and absorption costs | 713,221 | 713,221 | |
Accumulated Depreciation and Amortization | (829,997) | (681,341) | |
Total Investment in Real Estate Property, Net | 6,859,927 | 7,008,583 | |
Bon Secours | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 10,388,751 | 10,388,751 | |
Tenant origination and absorption costs | 800,356 | 800,356 | |
Accumulated Depreciation and Amortization | (1,204,744) | (978,335) | |
Total Investment in Real Estate Property, Net | 9,984,363 | 10,210,772 | |
Costco | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 27,330,797 | 27,330,797 | |
Tenant origination and absorption costs | 2,765,136 | 2,765,136 | |
Accumulated Depreciation and Amortization | (3,305,667) | (2,654,329) | |
Total Investment in Real Estate Property, Net | 26,790,266 | 27,441,604 | |
Taylor Fresh Foods | Industrial Property | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 34,194,369 | 34,194,369 | |
Tenant origination and absorption costs | 2,894,017 | 2,894,017 | |
Accumulated Depreciation and Amortization | (2,257,859) | (1,597,022) | |
Total Investment in Real Estate Property, Net | 34,830,527 | 35,491,364 | |
Levins | Industrial Property | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 4,429,390 | 4,429,390 | |
Tenant origination and absorption costs | 221,927 | 221,927 | |
Accumulated Depreciation and Amortization | (330,913) | (220,609) | |
Total Investment in Real Estate Property, Net | 4,320,404 | 4,430,708 | |
Dollar General | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 4,899,714 | ||
Tenant origination and absorption costs | 261,630 | ||
Accumulated Depreciation and Amortization | (220,698) | ||
Total Investment in Real Estate Property, Net | 4,940,646 | ||
GSA (MSHA) | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 3,112,076 | 3,112,076 | |
Tenant origination and absorption costs | 243,307 | 243,307 | |
Accumulated Depreciation and Amortization | (207,772) | (138,515) | |
Total Investment in Real Estate Property, Net | 3,147,611 | 3,216,868 | |
PreK San Antonio | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 12,447,287 | ||
Tenant origination and absorption costs | 555,767 | ||
Accumulated Depreciation and Amortization | (899,142) | ||
Total Investment in Real Estate Property, Net | 12,103,912 | ||
Dollar Tree | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,320,367 | 1,320,367 | |
Tenant origination and absorption costs | 73,298 | 73,298 | |
Accumulated Depreciation and Amortization | (106,366) | (70,911) | |
Total Investment in Real Estate Property, Net | 1,287,299 | 1,322,754 | |
Solar Turbines | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 7,133,241 | 7,133,241 | |
Tenant origination and absorption costs | 284,026 | 284,026 | |
Accumulated Depreciation and Amortization | (507,486) | (338,232) | |
Total Investment in Real Estate Property, Net | 6,909,781 | 7,079,035 | |
Wood Group | Industrial Property | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 9,731,220 | 9,731,220 | |
Tenant origination and absorption costs | 539,633 | 466,293 | |
Accumulated Depreciation and Amortization | (742,040) | (565,017) | |
Total Investment in Real Estate Property, Net | 9,528,813 | 9,632,496 | |
ITW Rippey | Industrial Property | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 7,071,143 | 7,071,143 | |
Tenant origination and absorption costs | 304,387 | 304,387 | |
Accumulated Depreciation and Amortization | (456,010) | (303,219) | |
Total Investment in Real Estate Property, Net | 6,919,520 | 7,072,311 | |
Dollar General, Big Spring | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 1,281,683 | 1,281,683 | |
Tenant origination and absorption costs | 76,351 | 76,351 | |
Accumulated Depreciation and Amortization | (76,453) | (50,969) | |
Total Investment in Real Estate Property, Net | 1,281,581 | 1,307,065 | |
Gap | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 8,378,276 | 8,378,276 | |
Tenant origination and absorption costs | 360,377 | 360,377 | |
Accumulated Depreciation and Amortization | (718,960) | (479,306) | |
Total Investment in Real Estate Property, Net | 8,019,693 | 8,259,347 | |
Sutter Health | Office | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 29,555,055 | 29,555,055 | |
Tenant origination and absorption costs | 1,616,610 | 1,616,610 | |
Accumulated Depreciation and Amortization | (1,620,523) | (1,080,349) | |
Total Investment in Real Estate Property, Net | 29,551,142 | $ 30,091,316 | |
Walgreens | Retail | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 5,223,442 | ||
Tenant origination and absorption costs | 335,945 | ||
Accumulated Depreciation and Amortization | (199,441) | ||
Total Investment in Real Estate Property, Net | 5,359,946 | ||
Labcorp property | Industrial Property | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 9,672,174 | ||
Tenant origination and absorption costs | 408,225 | ||
Accumulated Depreciation and Amortization | (306,481) | ||
Total Investment in Real Estate Property, Net | 9,773,918 | ||
L3Harris property | Industrial Property | |||
Real Estate [Line Items] | |||
Land, Buildings and Improvements | 11,631,857 | ||
Tenant origination and absorption costs | 454,035 | ||
Accumulated Depreciation and Amortization | (706,233) | ||
Total Investment in Real Estate Property, Net | $ 11,379,659 |
REAL ESTATE INVESTMENTS, NET _4
REAL ESTATE INVESTMENTS, NET - Real Estate Impairment Charges (Q2) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Real Estate [Line Items] | ||||||||
Impairment of real estate investment properties | $ (400,999) | $ 761,100 | $ 349,457 | $ 9,157,068 | $ (400,999) | $ 9,506,525 | $ 10,267,625 | $ 0 |
Dana | Industrial Property | ||||||||
Real Estate [Line Items] | ||||||||
Impairment of real estate investment properties | 0 | 2,184,395 | 2,184,395 | |||||
24 Hour Fitness | Retail | ||||||||
Real Estate [Line Items] | ||||||||
Impairment of real estate investment properties | 0 | $ 5,664,517 | 5,664,517 | 5,664,517 | ||||
Dinan Cars | Industrial Property | ||||||||
Real Estate [Line Items] | ||||||||
Impairment of real estate investment properties | 0 | 1,308,156 | 1,308,156 | |||||
Rite Aid | Industrial Property | ||||||||
Real Estate [Line Items] | ||||||||
Impairment of real estate investment properties | 349,457 | $ 349,457 | ||||||
Rite Aid | Retail | ||||||||
Real Estate [Line Items] | ||||||||
Impairment of real estate investment properties | $ 349,457 | $ 349,457 |
REAL ESTATE INVESTMENTS, NET _5
REAL ESTATE INVESTMENTS, NET - Dispositions (Q2) (Details) | Feb. 12, 2021USD ($)ft² | Jan. 29, 2021USD ($)ft² | Jan. 07, 2021USD ($)ft² | Jun. 30, 2021USD ($)ft² | Mar. 31, 2021USD ($)ft² | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)ft² | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)ft² | Dec. 31, 2019USD ($) |
Real Estate [Line Items] | ||||||||||
Rentable Square Feet | ft² | 2,300,000 | 2,300,000 | 118,651 | |||||||
Contract Sale Price | $ 31,096,403 | |||||||||
Gain (Loss) on Sale | $ 0 | $ 0 | $ 289,642 | $ 0 | $ 4,139,749 | $ 0 | ||||
Retail | ||||||||||
Real Estate [Line Items] | ||||||||||
Rentable Square Feet | ft² | 42,896 | |||||||||
Contract Sale Price | $ 13,714,188 | |||||||||
Gain (Loss) on Sale | $ 289,642 | |||||||||
Retail | Chevron Gas Station, Roseville property | ||||||||||
Real Estate [Line Items] | ||||||||||
Rentable Square Feet | ft² | 3,300 | |||||||||
Contract Sale Price | $ 4,050,000 | |||||||||
Gain (Loss) on Sale | $ 228,769 | |||||||||
Retail | EcoThrift | ||||||||||
Real Estate [Line Items] | ||||||||||
Rentable Square Feet | ft² | 38,536 | |||||||||
Contract Sale Price | $ 5,375,300 | |||||||||
Gain (Loss) on Sale | $ 51,415 | |||||||||
Retail | Chevron Gas Station, San Jose property | ||||||||||
Real Estate [Line Items] | ||||||||||
Rentable Square Feet | ft² | 1,060 | |||||||||
Contract Sale Price | $ 4,288,888 | |||||||||
Gain (Loss) on Sale | $ 9,458 |
REAL ESTATE INVESTMENTS, NET _6
REAL ESTATE INVESTMENTS, NET - Rental Payments for Operating Leases (Q2) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||
July through December 2021 | $ 13,219,545 | |
2022 | 25,533,893 | $ 26,761,843 |
2023 | 22,070,671 | 24,418,710 |
2024 | 21,588,111 | 20,157,378 |
2025 | 18,369,437 | 19,674,819 |
2026 | 11,524,427 | 16,456,145 |
Thereafter | 42,329,568 | 43,827,967 |
Total | $ 154,635,652 | $ 151,296,862 |
REAL ESTATE INVESTMENTS, NET _7
REAL ESTATE INVESTMENTS, NET - Intangible Assets (Q2) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Real Estate [Line Items] | |||
Cost | $ 7,072,592 | $ 6,960,842 | |
Accumulated amortization | (2,758,793) | (1,833,054) | $ 0 |
Net amount | 4,313,799 | 5,127,788 | 7,700,000 |
Tenant Origination and Absorption Costs | |||
Real Estate [Line Items] | |||
Cost | 23,570,335 | 23,792,057 | 27,266,610 |
Accumulated amortization | (11,210,646) | (9,695,960) | (6,005,248) |
Net amount | 12,359,689 | 14,096,097 | 21,261,362 |
Above-Market Lease Intangibles | |||
Real Estate [Line Items] | |||
Cost | 1,128,549 | 1,128,549 | 1,547,646 |
Accumulated amortization | (372,620) | (307,707) | (295,912) |
Net amount | 755,929 | 820,842 | 1,251,734 |
Below-Market Lease Intangibles | |||
Below-Market Lease Intangibles | |||
Cost | (15,097,132) | (15,163,672) | (15,713,975) |
Accumulated amortization | 3,266,545 | 2,597,935 | 1,122,616 |
Net amount | $ (11,830,587) | $ (12,565,737) | $ (14,591,359) |
REAL ESTATE INVESTMENTS, NET _8
REAL ESTATE INVESTMENTS, NET - Intangible Assets Amortization (Q2) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Real Estate [Line Items] | |||
July through December 2021 | $ 938,913 | ||
2022 | 1,877,826 | ||
2023 | 787,228 | ||
2024 | 709,832 | ||
Net amount | $ 4,313,799 | $ 5,127,788 | $ 7,700,000 |
Below-Market Lease Intangibles | |||
Weighted-average remaining amortization period | 9 years 4 months 24 days | 9 years 4 months 24 days | |
Tenant Origination and Absorption Costs | |||
Real Estate [Line Items] | |||
July through December 2021 | $ 1,609,387 | ||
2022 | 2,682,533 | $ 3,801,383 | |
2023 | 1,805,532 | 2,628,700 | |
2024 | 1,689,428 | 1,751,653 | |
2025 | 1,311,545 | 1,625,159 | |
2026 | 601,734 | 1,242,973 | |
Thereafter | 2,659,530 | 3,046,229 | |
Net amount | $ 12,359,689 | $ 14,096,097 | 21,261,362 |
Below-Market Lease Intangibles | |||
Weighted-average remaining amortization period | 7 years 1 month 6 days | 7 years 1 month 6 days | |
Above-Market Lease Intangibles | |||
Real Estate [Line Items] | |||
July through December 2021 | $ 64,909 | ||
2022 | 129,823 | $ 129,823 | |
2023 | 127,174 | 129,823 | |
2024 | 122,543 | 127,174 | |
2025 | 115,996 | 122,543 | |
2026 | 78,557 | 115,995 | |
Thereafter | 116,927 | 195,484 | |
Net amount | $ 755,929 | $ 820,842 | 1,251,734 |
Below-Market Lease Intangibles | |||
Weighted-average remaining amortization period | 6 years 9 months 18 days | 7 years 2 months 12 days | |
Below-Market Lease Intangibles | |||
Below-Market Lease Intangibles | |||
July through December 2021 | $ (727,614) | ||
2022 | (1,217,029) | $ (1,462,730) | |
2023 | (921,169) | (1,217,076) | |
2024 | (917,750) | (921,169) | |
2025 | (917,750) | (917,750) | |
2026 | (912,347) | (917,750) | |
Thereafter | (6,216,928) | (7,129,262) | |
Net amount | $ (11,830,587) | $ (12,565,737) | $ (14,591,359) |
Weighted-average remaining amortization period | 11 years 10 months 24 days | 12 years 2 months 12 days |
REAL ESTATE INVESTMENTS, NET _9
REAL ESTATE INVESTMENTS, NET - Real Estate Investments Held for Sale (Q2) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets related to real estate investments held for sale: | ||||||
Real estate investments held for sale, net | $ 5,375,746 | $ 5,375,746 | $ 24,585,739 | $ 0 | ||
Other assets, net | 671,265 | 671,265 | 1,079,361 | 0 | ||
Liabilities related to real estate investments held for sale: | ||||||
Mortgage notes payable, net | 4,381,426 | 4,381,426 | 9,088,438 | 0 | ||
Other liabilities, net | 227,433 | 227,433 | 801,337 | 0 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Assets related to real estate investments held for sale: | ||||||
Land, buildings and improvements | 6,802,876 | 6,802,876 | 25,675,459 | |||
Tenant origination and absorption costs | 531,439 | 531,439 | 554,788 | |||
Accumulated depreciation and amortization | (1,958,569) | (1,958,569) | (1,644,508) | |||
Real estate investments held for sale, net | 5,375,746 | 5,375,746 | 24,585,739 | |||
Other assets, net | 671,265 | 671,265 | 1,079,361 | |||
Total assets related to real estate investments held for sale: | 6,047,011 | 6,047,011 | 25,665,100 | |||
Liabilities related to real estate investments held for sale: | ||||||
Mortgage notes payable, net | 4,381,426 | 4,381,426 | 9,088,438 | |||
Other liabilities, net | 227,433 | 227,433 | 801,337 | |||
Total liabilities related to real estate investments held for sale: | 4,608,859 | 4,608,859 | 9,889,775 | |||
Rental income, expenses and impairment related to real estate investments held for sale: | ||||||
Total revenues | 342,198 | $ 312,060 | 716,160 | $ 1,480,909 | 2,326,058 | 1,325,265 |
Expenses: | ||||||
Interest expense | 63,207 | 83,658 | 138,629 | 221,022 | 552,246 | 323,460 |
Depreciation and amortization | 49,108 | 185,658 | 122,769 | 375,575 | 737,278 | 344,708 |
Other expenses | 78,857 | 101,131 | 145,797 | 221,811 | 352,280 | 385,282 |
Impairment | 0 | 349,457 | 0 | 1,657,613 | ||
Total expenses | 191,172 | 719,904 | 407,195 | 2,476,021 | 2,402,904 | 1,053,450 |
Net income (loss) | $ 151,026 | $ (407,844) | $ 308,965 | $ (995,112) | $ (76,846) | $ 271,815 |
INVESTMENT IN UNCONSOLIDATED _9
INVESTMENT IN UNCONSOLIDATED ENTITY - Investments (Q2) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated entity | $ 10,002,368 | $ 10,388,588 | |
The TIC Interest | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated entity | $ 9,987,703 | $ 10,002,368 |
INVESTMENT IN UNCONSOLIDATED_10
INVESTMENT IN UNCONSOLIDATED ENTITY - Entities Equity In Earnings (Q2) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Income from investment in unconsolidated entity | $ 74,834 | $ 125,658 | $ 147,302 | $ 146,411 | $ 296,780 | $ 234,048 |
The TIC Interest | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Income from investment in unconsolidated entity | $ 74,834 | $ 125,658 | $ 147,302 | $ 146,411 | $ 296,780 | $ 296,691 |
INVESTMENT IN UNCONSOLIDATED_11
INVESTMENT IN UNCONSOLIDATED ENTITY - Narrative (Q2) (Details) - Rich Uncles Real Estate Investment Trust - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 72.70% | ||||
Ownership percentage by noncontrolling owners | 27.30% | ||||
Dividends | $ 82,588 | $ 169,158 | $ 161,967 | $ 334,189 | |
Hagg Lane II, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage by noncontrolling owners | 23.40% | ||||
Hagg Lane III, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage by noncontrolling owners | 3.90% |
INVESTMENT IN UNCONSOLIDATED_12
INVESTMENT IN UNCONSOLIDATED ENTITY - Summarized Financial Information (Q2) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||||||||
Total assets | $ 389,555,298 | $ 389,555,298 | $ 407,433,014 | $ 490,917,263 | |||||
Liabilities: | |||||||||
Total liabilities | 211,100,320 | 211,100,320 | 217,180,778 | 236,675,009 | |||||
Total equity | 168,041,287 | $ 189,662,529 | 168,041,287 | $ 189,662,529 | $ 172,146,694 | 182,886,668 | $ 191,294,801 | 240,172,562 | $ 103,092,769 |
Total liabilities and equity | 389,555,298 | 389,555,298 | 407,433,014 | $ 490,917,263 | |||||
The TIC Interest | |||||||||
Assets | |||||||||
Real estate investments, net | 29,406,115 | 29,406,115 | 29,906,146 | ||||||
Cash and cash equivalents | 786,775 | 786,775 | 380,774 | ||||||
Other assets | 50,041 | 50,041 | 164,684 | ||||||
Total assets | 30,242,931 | 30,242,931 | 30,451,604 | ||||||
Liabilities: | |||||||||
Mortgage note payable, net | 13,354,714 | 13,354,714 | 13,489,126 | ||||||
Below-market lease, net | 2,733,780 | 2,733,780 | 2,806,973 | ||||||
Other liabilities | 111,598 | 111,598 | 92,777 | ||||||
Total liabilities | 16,200,092 | 16,200,092 | 16,388,876 | ||||||
Total equity | 14,042,839 | 14,042,839 | 14,062,728 | ||||||
Total liabilities and equity | 30,242,931 | 30,242,931 | $ 30,451,604 | ||||||
Total revenues | 676,936 | 751,653 | 1,350,912 | 1,349,573 | |||||
Expenses: | |||||||||
Interest expense | 138,036 | 140,906 | 275,642 | 282,609 | |||||
Depreciation and amortization | 250,015 | 250,680 | 500,030 | 499,898 | |||||
Other expenses | 185,964 | 187,246 | 372,652 | 365,703 | |||||
Total expenses | 574,015 | 578,832 | 1,148,324 | 1,148,210 | |||||
Net income | $ 102,921 | $ 172,821 | $ 202,588 | $ 201,363 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Net Carrying Amount of Goodwill (Q2) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||||
Goodwill at beginning of period | $ 50,588,000 | $ 17,320,857 | $ 50,588,000 | $ 50,588,000 | |
Impairment of goodwill | $ (33,267,143) | 0 | $ (33,267,143) | $ 0 | (33,267,143) |
Goodwill at end of period | $ 17,320,857 | $ 17,320,857 | $ 17,320,857 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Q2) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2020 | |
Schedule of Goodwill and Intangible Assets [Line Items] | |||||||||
Decrease in estimated fair value of real estate properties, percentage | 14.00% | ||||||||
Impairment of goodwill | $ 33,267,143 | $ 0 | $ 33,267,143 | $ 0 | $ 33,267,143 | ||||
Intangible assets amortization expense | $ 465,595 | $ 438,770 | 925,739 | 925,989 | $ 1,833,054 | $ 0 | |||
Impairment of intangible assets (excluding goodwill) | $ 1,305,260 | ||||||||
Estimated amortization expense, April to December 2021 | 938,913 | 938,913 | |||||||
Estimated amortization expense, 2022 | 1,877,826 | 1,877,826 | |||||||
Estimated amortization expense, 2023 | 787,228 | 787,228 | |||||||
Estimated amortization expense, 2024 | $ 709,832 | $ 709,832 | |||||||
Investor list, net | |||||||||
Schedule of Goodwill and Intangible Assets [Line Items] | |||||||||
Impairment of intangible assets (excluding goodwill) | $ 1,305,260 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets Acquired (Q2) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 7,072,592 | $ 6,960,842 | |
Accumulated amortization | (2,758,793) | (1,833,054) | $ 0 |
Net amount | $ 4,313,799 | 5,127,788 | $ 7,700,000 |
Investor list, net | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Useful Life | 5 years | ||
Cost | $ 3,494,740 | 3,494,740 | |
Web services technology, domains and licenses | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Useful Life | 3 years | ||
Cost | $ 3,577,852 | $ 3,466,102 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS - Tenant Receivables, Net (Q2) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Balance Sheet Disclosure [Abstract] | |||
Straight-line rent | $ 5,163,964 | $ 4,344,388 | $ 3,541,238 |
Tenant rent | 384,661 | 204,775 | 420,959 |
Tenant reimbursements | 1,607,198 | 2,116,627 | |
Total | $ 7,155,823 | $ 6,665,790 | $ 6,224,764 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS - Accounts Payable, Accrued and Other Liabilities (Q2) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Balance Sheet Disclosure [Abstract] | |||
Accounts payable | $ 398,793 | $ 1,136,954 | $ 660,111 |
Accrued expenses | 2,505,713 | 3,068,714 | 5,773,214 |
Accrued distributions | 649,812 | 706,106 | 962,615 |
Accrued interest payable | 580,882 | 629,628 | 1,690,168 |
Unearned rent | 1,684,491 | 2,033,065 | 1,963,896 |
Lease incentive obligation | 2,133,695 | 5,157 | 505,157 |
Total | $ 7,953,386 | $ 7,579,624 | $ 11,555,161 |
DEBT - Schedule of Debt (Q2) (D
DEBT - Schedule of Debt (Q2) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jul. 29, 2020 | Dec. 31, 2019 | |
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 185,758,762 | $ 182,948,438 | ||
Plus: unamortized mortgage premium, net of discount | 390,426 | 447,471 | ||
Less: unamortized deferred financing costs | (1,683,279) | (1,491,715) | ||
Net principal | $ 184,465,909 | $ 181,904,194 | ||
Loan to value ratio (as a percent) | 60.00% | 60.00% | ||
Accredo property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 8,538,000 | $ 8,538,000 | ||
Debt instrument, stated interest rate | 3.80% | |||
Debt instrument, effective interest rate | 3.80% | |||
Six Dollar General properties | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 3,711,118 | 3,747,520 | ||
Debt instrument, stated interest rate | 4.69% | |||
Debt instrument, effective interest rate | 4.69% | |||
Dana property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 0 | 4,466,865 | ||
Debt instrument, stated interest rate | 4.56% | |||
Debt instrument, effective interest rate | 4.56% | |||
Northrop Grumman | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 7,000,000 | 5,518,589 | ||
Debt instrument, stated interest rate | 3.35% | |||
Debt instrument, effective interest rate | 3.35% | |||
exp US Services property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 3,288,786 | 3,321,931 | ||
Debt instrument, effective interest rate | 4.25% | |||
Harley Davidson property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 6,558,170 | 0 | ||
Debt instrument, stated interest rate | 425.00% | |||
Debt instrument, effective interest rate | 4.25% | |||
Wyndham property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 5,551,200 | 5,607,000 | ||
Debt instrument, effective interest rate | 4.34% | |||
Wiiliams Sonoma property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 4,392,000 | 4,438,200 | ||
Debt instrument, effective interest rate | 4.34% | |||
Omnicare property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 4,151,386 | 4,193,171 | ||
Debt instrument, stated interest rate | 4.36% | |||
Debt instrument, effective interest rate | 4.36% | |||
EMCOR property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 2,784,868 | 2,811,539 | ||
Debt instrument, stated interest rate | 4.35% | |||
Debt instrument, effective interest rate | 4.35% | |||
Husqvarna property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 6,379,182 | $ 6,379,182 | ||
Debt instrument, stated interest rate | 4.60% | 4.60% | ||
Debt instrument, effective interest rate | 4.60% | |||
AvAir property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 19,950,000 | $ 19,950,000 | ||
Debt instrument, stated interest rate | 3.80% | |||
Debt instrument, effective interest rate | 3.80% | |||
3M property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 8,091,800 | 8,166,000 | ||
Debt instrument, effective interest rate | 5.09% | |||
Cummins property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 8,256,600 | 8,332,200 | ||
Debt instrument, effective interest rate | 5.16% | |||
Texas Health property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 4,324,160 | 4,363,203 | ||
Debt instrument, stated interest rate | 4.00% | |||
Debt instrument, effective interest rate | 4.00% | |||
Bon Secours property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 5,142,425 | 5,180,552 | ||
Debt instrument, stated interest rate | 5.41% | |||
Debt instrument, effective interest rate | 5.41% | |||
Costco property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 18,850,000 | 18,850,000 | ||
Debt instrument, stated interest rate | 4.85% | |||
Debt instrument, effective interest rate | 4.85% | |||
Taylor Fresh Foods | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 12,350,000 | 12,350,000 | ||
Debt instrument, stated interest rate | 3.85% | |||
Debt instrument, effective interest rate | 3.85% | |||
Levins property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 2,687,293 | 2,032,332 | ||
Debt instrument, stated interest rate | 3.75% | |||
Debt instrument, effective interest rate | 3.75% | |||
Dollar General Bakersfield property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 2,263,573 | 2,268,922 | ||
Debt instrument, stated interest rate | 3.65% | |||
Debt instrument, effective interest rate | 3.65% | |||
Labcorp property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 5,374,587 | 4,020,418 | ||
Debt instrument, stated interest rate | 3.75% | |||
Debt instrument, effective interest rate | 3.75% | |||
GSA (MSHA) property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 1,743,349 | 1,752,092 | ||
Debt instrument, stated interest rate | 3.65% | |||
Debt instrument, effective interest rate | 3.65% | |||
PreK San Antonio property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 4,984,311 | 5,037,846 | ||
Debt instrument, stated interest rate | 4.25% | |||
Debt instrument, effective interest rate | 4.25% | |||
Solar Turbines, Amec Foster, ITW Rippey properties | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 9,101,005 | 9,214,700 | ||
Debt instrument, stated interest rate | 3.35% | |||
Debt instrument, effective interest rate | 3.35% | |||
Dollar General Big Spring property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 593,851 | 599,756 | ||
Debt instrument, stated interest rate | 4.50% | |||
Debt instrument, effective interest rate | 4.50% | |||
Gap property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 3,531,585 | 3,569,990 | ||
Debt instrument, stated interest rate | 4.15% | |||
Debt instrument, effective interest rate | 4.15% | |||
L3Harris property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 6,300,000 | 5,185,929 | ||
Debt instrument, stated interest rate | 3.35% | |||
Debt instrument, effective interest rate | 3.35% | |||
Sutter Health property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 13,739,153 | 13,879,655 | ||
Debt instrument, stated interest rate | 4.50% | |||
Debt instrument, effective interest rate | 4.50% | |||
Walgreens property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 3,120,360 | $ 3,172,846 | ||
Debt instrument, stated interest rate | 4.25% | |||
Debt instrument, effective interest rate | 4.25% | |||
Initial Contractual Interest One | exp US Services property | ||||
Short Term Debt [LineItems] | ||||
Interest rate at period start | 4.25% | 4.25% | ||
LIBOR | Wyndham property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, basis spread on variable rate | 2.05% | |||
LIBOR | Wiiliams Sonoma property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, basis spread on variable rate | 2.05% | |||
LIBOR | 3M property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, basis spread on variable rate | 2.25% | |||
LIBOR | Cummins property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, basis spread on variable rate | 2.25% | |||
Treasury Bill Index | exp US Services property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, stated interest rate | 3.25% | 3.25% | ||
Treasury Bill Index | Husqvarna property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, basis spread on variable rate | 2.45% | |||
Prime Rate | L3Harris property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, basis spread on variable rate | 0.25% | |||
Mortgages | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 182,758,762 | $ 176,948,438 | $ 195,739,481 | |
Plus: unamortized mortgage premium, net of discount | 390,426 | 447,471 | 489,664 | |
Less: unamortized deferred financing costs | (1,572,582) | (1,469,991) | (2,189,938) | |
Net principal | $ 181,576,606 | 175,925,918 | 194,039,207 | |
Mortgages | Six Dollar General properties | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 3,747,520 | 3,819,264 | ||
Debt instrument, stated interest rate | 4.69% | |||
Debt instrument, effective interest rate | 4.69% | |||
Mortgages | Dana property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 4,466,865 | 4,551,250 | ||
Debt instrument, stated interest rate | 4.56% | |||
Debt instrument, effective interest rate | 4.56% | |||
Mortgages | Northrop Grumman | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 5,518,589 | 5,666,866 | ||
Debt instrument, stated interest rate | 4.40% | |||
Debt instrument, effective interest rate | 4.40% | |||
Mortgages | exp US Services property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 3,321,931 | 3,385,353 | ||
Debt instrument, effective interest rate | 4.25% | |||
Mortgages | Harley Davidson property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 0 | 6,748,029 | ||
Debt instrument, stated interest rate | 4.25% | |||
Debt instrument, effective interest rate | 4.25% | |||
Mortgages | Wyndham property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 5,607,000 | 5,716,200 | ||
Debt instrument, effective interest rate | 4.34% | |||
Mortgages | Wiiliams Sonoma property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 4,438,200 | 4,530,600 | ||
Debt instrument, effective interest rate | 4.34% | |||
Mortgages | Omnicare property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 4,193,171 | 4,273,552 | ||
Debt instrument, stated interest rate | 4.36% | |||
Debt instrument, effective interest rate | 4.36% | |||
Mortgages | EMCOR property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 2,811,539 | 2,862,484 | ||
Debt instrument, stated interest rate | 4.35% | |||
Debt instrument, effective interest rate | 4.35% | |||
Mortgages | Husqvarna property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 6,379,182 | 6,379,182 | ||
Debt instrument, effective interest rate | 4.60% | |||
Mortgages | AvAir property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 19,950,000 | $ 19,950,000 | $ 14,575,000 | |
Debt instrument, stated interest rate | 380.00% | |||
Debt instrument, effective interest rate | 3.80% | 3.80% | 4.84% | |
Mortgages | 3M property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 8,166,000 | $ 8,290,000 | ||
Debt instrument, effective interest rate | 5.09% | |||
Mortgages | Texas Health property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 4,363,203 | 4,400,000 | ||
Debt instrument, stated interest rate | 4.00% | |||
Debt instrument, effective interest rate | 4.00% | |||
Mortgages | Bon Secours property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 5,180,552 | 5,250,000 | ||
Debt instrument, stated interest rate | 5.41% | |||
Debt instrument, effective interest rate | 5.41% | |||
Mortgages | Costco property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 18,850,000 | 18,850,000 | ||
Debt instrument, stated interest rate | 4.85% | |||
Debt instrument, effective interest rate | 4.85% | |||
Mortgages | Taylor Fresh Foods | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 12,350,000 | 12,350,000 | ||
Debt instrument, stated interest rate | 3.85% | |||
Debt instrument, effective interest rate | 3.85% | |||
Mortgages | Levins property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 2,032,332 | 2,079,793 | ||
Debt instrument, effective interest rate | 3.74% | |||
Mortgages | Dollar General Bakersfield property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 2,268,922 | |||
Debt instrument, effective interest rate | 3.38% | |||
Mortgages | GSA (MSHA) property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 1,752,092 | 1,796,361 | ||
Debt instrument, effective interest rate | 3.13% | |||
Mortgages | PreK San Antonio property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 5,037,846 | 5,140,343 | ||
Debt instrument, stated interest rate | 4.25% | |||
Debt instrument, effective interest rate | 4.25% | |||
Mortgages | Dollar General Big Spring property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 599,756 | 611,161 | ||
Debt instrument, stated interest rate | 4.50% | |||
Debt instrument, effective interest rate | 4.50% | |||
Mortgages | Gap property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 3,569,990 | 3,643,166 | ||
Debt instrument, stated interest rate | 4.15% | |||
Debt instrument, effective interest rate | 4.15% | |||
Mortgages | Sutter Health property | ||||
Short Term Debt [LineItems] | ||||
Mortgage notes payable | $ 13,879,655 | $ 14,161,776 | ||
Debt instrument, stated interest rate | 4.50% | |||
Debt instrument, effective interest rate | 4.50% | |||
Mortgages | LIBOR | Wyndham property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, basis spread on variable rate | 2.05% | |||
Mortgages | LIBOR | Wiiliams Sonoma property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, basis spread on variable rate | 2.05% | |||
Mortgages | LIBOR | 3M property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, basis spread on variable rate | 2.25% | |||
Mortgages | LIBOR | Levins property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, basis spread on variable rate | 1.93% | |||
Mortgages | LIBOR | GSA (MSHA) property | ||||
Short Term Debt [LineItems] | ||||
Debt instrument, basis spread on variable rate | 1.25% |
DEBT - Summary of Mortgage Note
DEBT - Summary of Mortgage Notes Payable (Q2) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Principal amount | $ 185,758,762 | $ 182,948,438 | |
Carrying Value | 181,576,606 | 175,925,918 | |
Fair Value | 184,187,667 | 177,573,106 | |
Mortgages | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 182,758,762 | 176,948,438 | $ 195,739,481 |
Fair Value | $ 177,573,106 | $ 200,535,334 |
DEBT - Mortgage Notes Payable_2
DEBT - Mortgage Notes Payable Related to Real Estate Investments Held For Sale, Net (Q2) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 185,758,762 | $ 182,948,438 | |
Plus unamortized mortgage premium | 390,426 | 447,471 | |
Less: deferred financing costs | (1,683,279) | (1,491,715) | |
Net principal | 184,465,909 | 181,904,194 | |
Dana | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | 0 | 4,466,865 | |
Harley Davidson property | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | 6,558,170 | 0 | |
Mortgages | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | 182,758,762 | 176,948,438 | $ 195,739,481 |
Plus unamortized mortgage premium | 390,426 | 447,471 | 489,664 |
Less: deferred financing costs | (1,572,582) | (1,469,991) | (2,189,938) |
Net principal | 181,576,606 | 175,925,918 | 194,039,207 |
Mortgages | Dana | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | 4,466,865 | 4,551,250 | |
Mortgages | Harley Davidson property | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | 0 | 6,748,029 | |
Mortgages | EcoThrift | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | 0 | $ 2,639,237 | |
Mortgages | Secured Notes Payable, Real Estate Held-for-sale | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | 4,422,616 | 9,196,855 | |
Plus unamortized mortgage premium | 0 | 1,550 | |
Less: deferred financing costs | (41,190) | (109,967) | |
Net principal | 4,381,426 | 9,088,438 | |
Mortgages | Secured Notes Payable, Real Estate Held-for-sale | Dana | Retail | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | 4,422,616 | 0 | |
Mortgages | Secured Notes Payable, Real Estate Held-for-sale | Harley Davidson property | Retail | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | 0 | 6,623,346 | |
Mortgages | Secured Notes Payable, Real Estate Held-for-sale | EcoThrift | Retail | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | 2,573,509 | ||
Mortgages | Secured Notes Payable, Real Estate Held-for-sale | EcoThrift | Industrial Property | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 0 | $ 2,573,509 |
DEBT - Schedule of Line of Cred
DEBT - Schedule of Line of Credit Facilities (Q2) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | |||
Credit facility | $ 3,000,000 | $ 6,000,000 | $ 7,740,000 |
Less unamortized deferred financing costs | (110,697) | (21,724) | (90,139) |
Unsecured credit facility, net | $ 2,889,303 | $ 5,978,276 | $ 7,649,861 |
DEBT - Narrative (Q2) (Details)
DEBT - Narrative (Q2) (Details) | Mar. 31, 2021USD ($) | Mar. 29, 2021USD ($) | Aug. 13, 2020USD ($) | Dec. 19, 2019USD ($) | Jun. 30, 2021USD ($)property | Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($) | Apr. 20, 2020USD ($) | Apr. 06, 2020USD ($) | Mar. 27, 2020 | Mar. 26, 2020 | Feb. 28, 2020 | Feb. 27, 2020 |
Debt Instrument [Line Items] | |||||||||||||||
Number of real estate properties, held-for-sale | property | 1 | 1 | 2 | ||||||||||||
Outstanding balance of unsecured credit facility | $ 3,000,000 | $ 3,000,000 | $ 6,000,000 | $ 7,740,000 | |||||||||||
Repayments of unsecured credit facility | 9,000,000 | $ 0 | 6,000,000 | 13,869,000 | |||||||||||
Debt instrument, fair value disclosure | $ 184,187,667 | $ 184,187,667 | 177,573,106 | ||||||||||||
Maximum leverage ratio | 0.55 | 0.55 | 0.55 | 0.50 | |||||||||||
Unsecured Credit Facility | Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 12,000,000 | ||||||||||||||
Repayments of unsecured credit facility | $ 6,000,000 | $ 6,000,000 | |||||||||||||
Prime Rate | Unsecured Credit Facility | Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||||||||
Minimum | Unsecured Credit Facility | Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility, interest rate during period | 5.50% | 4.75% | |||||||||||||
New Credit Facility | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 22,000,000 | ||||||||||||||
Proceeds from credit facility | $ 6,000,000 | ||||||||||||||
Payments of debt issuance costs | $ 77,000 | ||||||||||||||
Unused commitment fee percentage | 0.15% | ||||||||||||||
Minimum debt service coverage ratio | 125.00% | ||||||||||||||
Minimum tangible net asset value | $ 120,000,000 | ||||||||||||||
New Credit Facility | Revolving Credit Facility, Real Estate Acquisitions | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | 17,000,000 | ||||||||||||||
New Credit Facility | Revolving Credit Facility, Working Capital | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 5,000,000 | ||||||||||||||
New Credit Facility | Prime Rate | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||||||||
Loans, Mature on October 15, 2021 | Unsecured Credit Facility | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Outstanding balance of unsecured credit facility | 6,000,000 | ||||||||||||||
Loans, Mature on October 15, 2021 | Unsecured Credit Facility | Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 6,000,000 | ||||||||||||||
Revolving Line of Credit Due by September 30, 2021 | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of unsecured credit facility | $ 6,000,000 | ||||||||||||||
Short-term Convertible Notes Payable | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 4,800,000 | ||||||||||||||
Debt instrument, stated interest rate | 10.00% | 8.00% | |||||||||||||
Debt instrument, fair value disclosure | $ 1,024,750 | $ 490,000 | |||||||||||||
Short-term Other Notes Payable | Loan Agreement and Promissory Note, Paycheck Protection Program, CARES Act | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 517,000 |
DEBT - Maturities of Long-term
DEBT - Maturities of Long-term Debt (Q2) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
July through December 2021 | $ 9,196,648 | |
2022 | 11,171,882 | $ 23,091,541 |
2023 | 22,203,304 | 20,873,759 |
2024 | 31,562,644 | 25,642,649 |
2025 | 28,970,205 | 24,599,437 |
2026 | 26,484,106 | 30,781,473 |
Thereafter | 56,169,973 | 57,959,579 |
Total principal | 185,758,762 | 182,948,438 |
Plus unamortized mortgage premium, net of unamortized discount | 390,426 | 447,471 |
Less: unamortized deferred financing costs | (1,683,279) | (1,491,715) |
Net principal | 184,465,909 | $ 181,904,194 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
July through December 2021 | 3,000,000 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total principal | 3,000,000 | |
Plus unamortized mortgage premium, net of unamortized discount | 0 | |
Less: unamortized deferred financing costs | (110,697) | |
Net principal | 2,889,303 | |
Mortgage Notes Payable | ||
Debt Instrument [Line Items] | ||
July through December 2021 | 6,196,648 | |
2022 | 11,171,882 | |
2023 | 22,203,304 | |
2024 | 31,562,644 | |
2025 | 28,970,205 | |
2026 | 26,484,106 | |
Thereafter | 56,169,973 | |
Total principal | 182,758,762 | |
Plus unamortized mortgage premium, net of unamortized discount | 390,426 | |
Less: unamortized deferred financing costs | (1,572,582) | |
Net principal | $ 181,576,606 |
DEBT - Interest Expense (Q2) (D
DEBT - Interest Expense (Q2) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||||
Interest expense | $ 2,098,649 | $ 2,558,877 | $ 3,879,785 | $ 6,463,533 | $ 11,460,747 | $ 7,382,610 |
Amortization of deferred financing costs | 1,025,093 | 638,200 | ||||
Prepayment penalties | 0 | 0 | (517,000) | 0 | ||
Loss on interest rate swaps | (90,600) | 7,785 | (517,719) | 1,292,752 | 770,898 | 820,496 |
Other | 9,182 | 8,904 | 49,118 | 65,228 | ||
Accrued interest payable | 55,180 | 55,180 | 45,636 | 22,282 | ||
Mortgage Notes Payable | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 1,992,812 | 2,129,678 | 3,826,636 | 4,300,183 | 8,470,248 | 5,698,606 |
Amortization of deferred financing costs | 103,383 | 139,600 | 214,426 | 258,631 | 937,564 | 601,658 |
Prepayment penalties | 0 | 0 | 23,900 | 47,000 | ||
Loss on interest rate swaps | (92,200) | 70,985 | (420,243) | 1,395,697 | 1,172,781 | 843,174 |
Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 63,333 | 166,834 | 142,085 | 321,458 | 527,047 | 190,130 |
Amortization of deferred financing costs | $ 22,139 | $ 42,876 | $ 43,863 | $ 75,336 | $ 128,171 | $ 36,542 |
INTEREST RATE SWAP DERIVATIVE_8
INTEREST RATE SWAP DERIVATIVES - Narrative (Q2) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($)instrument | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)instrument | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Number of swap agreements terminated | 3 | |||||
(Gain) loss on interest rate swaps | $ | $ 90,600 | $ (7,785) | $ 517,719 | $ (1,292,752) | $ (770,898) | $ (820,496) |
Interest Rate Swaps | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Number of mortgage notes payable | 4 | 4 | 4 | |||
Number of swap agreements terminated | 4 |
INTEREST RATE SWAP DERIVATIVE_9
INTEREST RATE SWAP DERIVATIVES - Derivative Instruments (Q2) (Details) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Jun. 30, 2021USD ($)instrument | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument | |
GSA and EcoThrift | Swap | |||||
Receivables with Imputed Interest [Line Items] | |||||
Derivative, aggregate cost of hedge | $ 23,900 | ||||
Dinan Cars | Swap | |||||
Receivables with Imputed Interest [Line Items] | |||||
Derivative, aggregate cost of hedge | $ 47,000 | ||||
Interest Rate Swaps | |||||
Receivables with Imputed Interest [Line Items] | |||||
Number of Instruments | instrument | 4 | 8 | 12 | ||
Notional Amount | $ 26,291,600 | $ 36,617,164 | |||
Weighted Average Fixed Pay Rate | 4.55% | 3.35% | 3.87% | ||
Weighted Average Remaining Term | 2 years 2 months 12 days | 2 years 7 months 6 days | |||
Minimum | |||||
Receivables with Imputed Interest [Line Items] | |||||
Notional Amount | $ 24,935,999 | $ 34,989,063 | |||
Minimum | Interest Rate Swaps | |||||
Receivables with Imputed Interest [Line Items] | |||||
Notional Amount | $ 34,989,063 | $ 45,514,229 | |||
LIBOR | Minimum | Interest Rate Swaps | |||||
Receivables with Imputed Interest [Line Items] | |||||
Reference Rate | 4.05% | 3.13% | 2.76% | ||
LIBOR | Maximum | Interest Rate Swaps | |||||
Receivables with Imputed Interest [Line Items] | |||||
Reference Rate | 5.16% | 5.16% | 5.16% |
INTEREST RATE SWAP DERIVATIV_10
INTEREST RATE SWAP DERIVATIVES - Statement of Financial Position (Q2) (Details) | Jun. 30, 2021USD ($)instrument | Dec. 31, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument |
Derivatives, Fair Value [Line Items] | |||
Fair Value | $ 0 | $ 34,567 | |
Fair Value | $ (1,240,336) | $ (1,743,889) | $ (1,021,724) |
Interest Rate Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Number of Instruments | instrument | 4 | 8 | 12 |
Interest Rate Swaps | Liability | |||
Derivatives, Fair Value [Line Items] | |||
Number of Instruments | instrument | 4 | 8 | 7 |
Fair Value | $ (1,240,336) | $ (1,743,889) | $ (1,021,724) |
Interest Rate Swaps | Assets | |||
Derivatives, Fair Value [Line Items] | |||
Number of Instruments | instrument | 0 | 0 | 5 |
Fair Value | $ 0 | $ 0 | $ 34,567 |
RELATED PARTY TRANSACTIONS - Bo
RELATED PARTY TRANSACTIONS - Board of Directors Compensation (Q2) (Details) - Director - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Value of shares issued for services rendered | $ 110,000 | $ 70,000 | $ 180,000 | $ 72,083 |
Total | $ 170,000 | $ 70,000 | $ 240,000 | $ 103,333 |
Common stock issued to board of directors (in shares) | 4,470 | 2,272 | 7,510 | 2,355 |
Cash paid for services rendered | ||||
Related Party Transaction [Line Items] | ||||
Cash paid for services rendered | $ 60,000 | $ 0 | $ 60,000 | $ 31,250 |
RELATED PARTY TRANSACTIONS - _3
RELATED PARTY TRANSACTIONS - Narrative (Q2) (Details) | Aug. 28, 2020USD ($) | Jul. 31, 2020USD ($) | Mar. 02, 2020USD ($)property | Jul. 31, 2020USD ($)shares | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)notesPayableshares | Apr. 23, 2020USD ($) |
Related Party Transaction [Line Items] | |||||||||||
Due to related parties | $ 0 | $ 630,820 | |||||||||
Payments to independent member of Company's board of directors for services rendered | $ 31,250 | ||||||||||
Repayments of related party debt | 0 | 107,500 | |||||||||
Amount paid for related party transactions | $ 0 | ||||||||||
Advisor fees | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction rate | 0.10% | ||||||||||
Amount paid for related party transactions | $ 263,971 | ||||||||||
Board of Directors Chairman | Secured Notes Payable | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due to related parties | $ 630,820 | ||||||||||
Related party transaction rate | 10.00% | 10.00% | |||||||||
Number of notes payable | notesPayable | 2 | ||||||||||
Balloon payment due at maturity | $ 437,862 | ||||||||||
Board of Directors Chairman | Secured Notes Payable, Note Two | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Balloon payment due at maturity | 218,931 | ||||||||||
Board of Directors Chairman | Secured Notes Payable, Note One | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Balloon payment due at maturity | $ 218,931 | ||||||||||
Santa Clara | Advisor fees | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount paid for related party transactions | $ 47,984 | $ 47,984 | $ 95,967 | $ 95,967 | $ 191,933 | $ 191,933 | |||||
Wirta Trust | Board of Directors Chairman | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Notes payable, related party | $ 4,000,000 | ||||||||||
Number of real estate properties under mortgages | property | 2 | ||||||||||
Related party transaction rate | 8.00% | ||||||||||
Wirta Trust | Board of Directors Chairman | Chevron Gas Station, San Jose property | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Repayments of related party debt | $ 2,000,000 | ||||||||||
Wirta Trust | Board of Directors Chairman | Chevron Gas Station, Roseville property | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Repayments of related party debt | $ 2,000,000 | ||||||||||
Common Class C | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of shares issued for services rendered (in shares) | shares | 4,821 | ||||||||||
Director | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due to related parties | $ 101,250 | $ 101,250 | 21,250 | 57,500 | |||||||
Payments to independent member of Company's board of directors for services rendered | $ 407,083 | $ 372,500 | |||||||||
Director | Common Class C | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of shares issued for services rendered (in shares) | shares | 16,786 | 10,335 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Q2) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES [Line Items] | |||
Tenant reimbursements | $ 189,136 | $ 60,598 | $ 98,329 |
Restricted cash | $ 2,508,471 | 129,118 | 113,362 |
Termination period | 10 days | ||
Lease Agreements | |||
COMMITMENTS AND CONTINGENCIES [Line Items] | |||
Restricted cash | $ 2,400,000 | 92,684 | $ 92,684 |
Building Improvements, Tenant Improvements And Leasing Commissions | |||
COMMITMENTS AND CONTINGENCIES [Line Items] | |||
Restricted cash | $ 92,684 | ||
Maximum | |||
COMMITMENTS AND CONTINGENCIES [Line Items] | |||
Shares authorized to be repurchased per month (as a percent) | 2.00% | 2.00% | |
Shares authorized to be repurchased per quarter (as a percent) | 5.00% | 5.00% |
OPERATING PARTNERSHIP UNITS - N
OPERATING PARTNERSHIP UNITS - Narrative (Q2) (Details) | Feb. 01, 2021shares | Jan. 25, 2021$ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | May 05, 2021$ / shares | Jan. 27, 2021$ / shares | Jun. 01, 2020$ / shares | May 20, 2020$ / shares | Jan. 18, 2018$ / shares |
Business Acquisition [Line Items] | |||||||||||||
Net asset value (in usd per share) | $ / shares | $ 26.05 | $ 26.05 | $ 21.01 | $ 30.48 | $ 24.61 | $ 23.03 | $ 21.01 | $ 21.01 | $ 30 | ||||
Conversion ratio | 0.3333 | ||||||||||||
Class R OP Units | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Other ownership interests, units issued (in shares) | 358,670 | 358,670 | |||||||||||
Other ownership interests, capital account | $ | $ 6,006,979 | $ 6,006,979 | |||||||||||
Stock compensation expense | $ | $ 568,304 | $ 1,014,165 | |||||||||||
Other ownership interests, units issued, period | 3 years | ||||||||||||
Other ownership interests, earnings per share, diluted, threshold (in usd per share) | $ / shares | $ 1.05 | ||||||||||||
Other ownership interests, units outstanding (in shares) | 360,000 | ||||||||||||
Conversion ratio | 1 | 1 | |||||||||||
Potential future conversion ratio | 0.4000 | ||||||||||||
Class M OP Units | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Other ownership interests, units issued (in shares) | 657,949.5 | 657,949.5 | |||||||||||
Net asset value (in usd per share) | $ / shares | $ 43.42 | $ 43.42 | $ 35.02 | ||||||||||
Conversion ratio | 1.6667 | 1.6667 | 1 | ||||||||||
Class P OP Units | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Other ownership interests, units issued (in shares) | 56,029 | 56,029 | 56,029 | ||||||||||
Stock compensation expense | $ | $ 88,783 | $ 88,784 | $ 177,567 | $ 177,567 | $ 355,133 | ||||||||
Conversion ratio | 1.6667 | ||||||||||||
BrixInvest | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Contribution of Class M OP Units and Class P OP Units | $ | $ 50,603,000 | ||||||||||||
BrixInvest | Class M OP Units | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Other ownership interests, units issued (in shares) | 657,949.5 | ||||||||||||
BrixInvest | Class P OP Units | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Other ownership interests, units issued (in shares) | 26,318 | ||||||||||||
Operating Partnership | Class M OP Units and Class P OP Units | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Noncontrolling interest (as a percent) | 13.00% | ||||||||||||
Common Class C | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Conversion ratio | 1 | 1 | |||||||||||
Messrs. Halfacre and Pacini | Class P OP Units | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Other ownership interests, units issued (in shares) | 29,711 | ||||||||||||
Other ownership interests, capital account | $ | $ 976,618 | $ 976,618 | $ 1,154,186 | $ 1,509,319 | |||||||||
Other ownership interests, amortization period | 51 months | 51 months | |||||||||||
Mr. Halfacre | Class R OP Units | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Other ownership interests, units issued (in shares) | 120,000 | ||||||||||||
Other ownership interests, units issued, period | 3 years | ||||||||||||
Other ownership interests, units outstanding (in shares) | 210,667 | ||||||||||||
Mr. Halfacre | Class R OP Units, Future Compensation | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Other ownership interests, units issued (in shares) | 512,000 | ||||||||||||
Mr. Pacini | Class R OP Units | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Other ownership interests, units issued, period | 3 years | ||||||||||||
Other ownership interests, units outstanding (in shares) | 33,333 | ||||||||||||
Mr. Pacini | Class R OP Units, Future Compensation | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Other ownership interests, units issued (in shares) | 100,000 | ||||||||||||
Employees of Company | Class R OP Units | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Other ownership interests, units issued (in shares) | 348,000 | ||||||||||||
Other ownership interests, units outstanding (in shares) | 116,000 |
OPERATING PARTNERSHIP UNITS - C
OPERATING PARTNERSHIP UNITS - Class M OP Units Conversion (Q2) (Details) $ / shares in Units, $ in Millions | Feb. 01, 2021 | Jun. 30, 2021USD ($)$ / shares | Dec. 31, 2020 | Dec. 31, 2019USD ($)$ / shares |
Conversion of Stock [Line Items] | ||||
Conversion ratio | 0.3333 | |||
Fiscal Year 2021 | ||||
Conversion of Stock [Line Items] | ||||
Early conversion ratio | 0.50 | 0.50 | ||
AUM conversion threshold | $ | $ 860 | $ 860 | ||
AFFO conversion threshold (in usd per share) | $ / shares | $ 1.77 | $ 1.77 | ||
Conversion ratio | 0.5217 | 0.5217 | ||
Fiscal Year 2022 | ||||
Conversion of Stock [Line Items] | ||||
Early conversion ratio | 0.60 | 0.60 | ||
AUM conversion threshold | $ | $ 1,175 | $ 1,175 | ||
AFFO conversion threshold (in usd per share) | $ / shares | $ 1.95 | $ 1.95 | ||
Conversion ratio | 0.4000 | 0.4000 | ||
Fiscal Year 2023 | ||||
Conversion of Stock [Line Items] | ||||
Early conversion ratio | 0.70 | 0.70 | ||
AUM conversion threshold | $ | $ 1,551 | $ 1,551 | ||
AFFO conversion threshold (in usd per share) | $ / shares | $ 2.10 | $ 2.10 | ||
Conversion ratio | 0.3333 | 0.3333 | ||
Initial Period | ||||
Conversion of Stock [Line Items] | ||||
Conversion ratio | 0.6000 | 0.6000 |
SUBSEQUENT EVENTS - Narrative_2
SUBSEQUENT EVENTS - Narrative (Q2) (Details) | Jul. 26, 2021USD ($)ft²renewal_option$ / shares | Jul. 09, 2021USD ($) | Jul. 07, 2021USD ($) | Feb. 28, 2020USD ($) | Aug. 13, 2021USD ($)shares | Jan. 31, 2021USD ($) | Jan. 27, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Aug. 04, 2021$ / shares | May 05, 2021$ / shares | Mar. 31, 2021USD ($) | Mar. 29, 2021USD ($) | Mar. 25, 2021$ / shares | Feb. 25, 2021$ / shares | Feb. 01, 2021$ / shares | Jan. 22, 2021$ / shares | Jun. 01, 2020$ / shares | May 20, 2020$ / shares | Jan. 18, 2018$ / shares |
Subsequent Event [Line Items] | |||||||||||||||||||||||||
Dividends | $ 705,596 | $ 1,976,511 | $ 3,270,291 | $ 3,968,187 | $ 7,459,393 | $ 11,701,828 | $ 10,585,519 | ||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 23.03 | $ 21.01 | $ 26.05 | $ 26.05 | $ 21.01 | $ 30.48 | $ 24.61 | $ 21.01 | $ 21.01 | $ 30 | |||||||||||||||
Common stock redeemed during period | $ 17,576,261 | $ 12,145,903 | |||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 31,096,403 | 31,096,403 | |||||||||||||||||||||||
Proceeds from sale of real estate investments | 0 | ||||||||||||||||||||||||
Credit facility | 6,000,000 | $ 3,000,000 | $ 3,000,000 | 6,000,000 | 7,740,000 | ||||||||||||||||||||
Total rental revenue over the course of remaining lease term | $ 151,296,862 | $ 154,635,652 | $ 154,635,652 | 151,296,862 | |||||||||||||||||||||
Contract purchase price | $ 0 | $ 24,820,410 | |||||||||||||||||||||||
New Credit Facility | Line of Credit | |||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||
Maximum borrowing capacity | $ 22,000,000 | ||||||||||||||||||||||||
Revolving Credit Facility, Working Capital | New Credit Facility | Line of Credit | |||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||
Maximum borrowing capacity | 5,000,000 | ||||||||||||||||||||||||
Retail | |||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 13,714,188 | ||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||
Dividends | $ 650,167 | $ 620,788 | $ 695,768 | ||||||||||||||||||||||
Daily distribution rate (in usd per share) | $ / shares | $ 0.00287670 | $ 0.00287670 | $ 0.00287670 | $ 0.00287670 | |||||||||||||||||||||
Annualized distribution rate (in usd per share) | $ / shares | $ 1.05 | $ 1.05 | $ 1.05 | $ 1.05 | |||||||||||||||||||||
Net asset value, percentage | 4.30% | 4.56% | 5.00% | 5.00% | |||||||||||||||||||||
Net asset value (in usd per share) | $ / shares | $ 24.61 | $ 23.03 | $ 26.05 | $ 23.03 | $ 21.01 | $ 23.03 | $ 21.01 | ||||||||||||||||||
Subsequent Event | New Credit Facility | Line of Credit | |||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||
Maximum borrowing capacity | 22,000,000 | ||||||||||||||||||||||||
Subsequent Event | Revolving Credit Facility, Working Capital | New Credit Facility | Line of Credit | |||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||
Repayments of line of credit | $ 1,500,000 | ||||||||||||||||||||||||
Amount available | 15,500,000 | ||||||||||||||||||||||||
Maximum borrowing capacity | $ 5,000,000 | $ 5,000,000 | |||||||||||||||||||||||
Subsequent Event | Raising Cane's | |||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||
Area of restaurant property | ft² | 3,800 | ||||||||||||||||||||||||
Number of renewal options | renewal_option | 5 | ||||||||||||||||||||||||
Operating leases extension | 5 years | ||||||||||||||||||||||||
Maximum term | 25 years | ||||||||||||||||||||||||
Total rental revenue over the course of remaining lease term | $ 1,600,672 | ||||||||||||||||||||||||
Contract purchase price | $ 3,607,424 | ||||||||||||||||||||||||
Subsequent Event | Retail | Dana | |||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||
Disposal group, including discontinued operation, consideration | $ 10,000,000 | ||||||||||||||||||||||||
Proceeds from sale of real estate investments | $ 4,975,334 | ||||||||||||||||||||||||
Subsequent Event | Common Class C | |||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||
Common stock redeemed (in shares) | shares | 83,834 | 481,939 | |||||||||||||||||||||||
Common stock redeemed during period | $ 2,059,527 | $ 10,375,064 | |||||||||||||||||||||||
Subsequent Event | Common Class S | |||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||
Common stock redeemed (in shares) | shares | 0 | 0 |