v3.25.2
Real Estate Owned, Net and Real Estate Assets Held for Sale
 6 Months Ended
Jun. 30, 2025
Real Estate [Abstract]  
Real Estate Owned, Net and Real Estate Assets Held for Sale Real Estate Owned, Net and Real Estate Assets Held for Sale
Real Estate Owned Activities

2025 — In June 2025, the Company sold an industrial building for net proceeds of $13.8 million and recognized a net loss on sale of $2.1 million. In connection with the sale, the Company used the full net proceeds to partially repay a related mortgage loan payable.

2024 — In January 2024, a lease for a space in one of the industrial properties was terminated and the Company received a termination fee of $0.03 million. In connection with the lease termination, the Company wrote off the related unamortized in-place lease of $0.3 million and unamortized below-market rent of $0.1 million. Subsequent to the lease termination, the Company entered into a new lease with another tenant for the same space.

Operating Real Estate Owned, Net
    
    Real estate owned is comprised of five industrial buildings located in Texas with lease intangible assets and liabilities. The following table presents the components, net as of:
 June 30, 2025December 31, 2024
CostAccumulated Depreciation/AmortizationNetCostAccumulated Depreciation/AmortizationNet
Real estate:
Land$14,457,149 $— $14,457,149 $23,785,004 $— $23,785,004 
Building and building
   improvements		65,503,763 (4,257,645)61,246,118 104,924,745 (5,140,431)99,784,314 
Tenant improvements4,552 (1,175)3,377 29,585 (1,114)28,471 
Total real estate79,965,464 (4,258,820)75,706,644 128,739,334 (5,141,545)123,597,789 
Lease intangible assets:
In-place lease7,745,398 (3,901,313)3,844,085 12,060,731 (6,419,701)5,641,030 
Total intangible assets7,745,398 (3,901,313)3,844,085 12,060,731 (6,419,701)5,641,030 
Lease intangible liabilities:
Below-market rent(4,555,806)2,174,451 (2,381,355)(8,649,073)4,746,657 (3,902,416)
Total intangible liabilities(4,555,806)2,174,451 (2,381,355)(8,649,073)4,746,657 (3,902,416)
Total operating real estate$83,155,056 $(5,985,682)$77,169,374 $132,150,992 $(6,814,589)$125,336,403 

Real Estate Assets Held for Sale

    During the three months ended June 30, 2025, the Company entered into purchase and sale agreements to sell two industrial buildings for a total purchase price of $28.5 million. In connection with the pending sales, the Company recorded an impairment charge of $3.4 million to reduce the carrying value of the industrial buildings to their estimated selling price less the cost of the sale. The Company expects the sales to be completed within the next twelve months, and therefore, these two properties are presented as Real estate assets held for sale on the consolidated balance sheets as of June 30, 2025.
Real Estate Operating Revenues and Expenses

    The following table presents the components of real estate operating revenues and expenses that are included in the consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Real estate operating revenues:
Lease revenue$1,470,794 $2,063,600 $3,130,675 $4,167,822 
Other operating income497,669 655,025 1,021,983 1,270,504 
Total$1,968,463 $2,718,625 $4,152,658 $5,438,326 
Real estate operating expenses:
Utilities$24,242 $10,620 $51,686 $22,340 
Real estate taxes1,069,663 290,632 1,368,405 681,442 
Repairs and maintenances44,595 91,528 325,556 118,500 
Management fees66,069 64,147 129,942 126,401 
Other operating expenses357,230 325,344 661,438 524,594 
Total$1,561,799 $782,271 $2,537,027 $1,473,277 

    The following table presents the amortization of intangibles that is included in the consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Net amortization of above- and below-market rent
    intangibles (1)
$(354,010)$(703,872)$(758,255)$(1,528,715)
Amortization of in-place lease intangibles (2)
$479,204 $964,516 $1,040,624 $2,299,301 
_______________
(1)Net amortization of above- and below-market rent intangibles is recorded as an adjustment to real estate operating revenue on the consolidated statements of operations.
(2)Amortization of in-place lease intangibles is included in depreciation and amortization expense on the consolidated statements of operations.