Loans Payable (Tables)
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3 Months Ended |
Mar. 31, 2026 |
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| Loans Payable |
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| Schedule of mortgage payables, net |
| | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, | | | | | | | Monthly | | Interest | | | | | | 2026 | | | December 31, | | Property | | Payment | | Rate | | | Maturity | | (unaudited) | | 2025 | | Franklin Square (a) | | $ | 61,800 | | 3.81 | % | | December 2031 | | $ | — | | $ | 13,015,840 | | Ashley Plaza (b) | | | 52,795 | | 3.75 | % | | September 2029 | | | 10,157,546 | | | 10,220,312 | | Brookfield Center (c) | | | 22,876 | | 3.90 | % | | November 2029 | | | 4,351,077 | | | 4,377,112 | | Wells Fargo Mortgage Facility (Lancer Center) (d) | | | 30,000 | | 4.50 | % | | June 2027 | | | 4,798,477 | | | 5,502,446 | | Unamortized issuance costs, net | | | | | | | | | | | (110,163) | | | (286,847) | | Total mortgages payable, net | | | | | | | | | | $ | 19,196,937 | | $ | 32,828,863 | |
| (a) | The mortgage loan for the Franklin Square Property in the original principal amount of $13,250,000 had a ten-year term and a maturity date of December 6, 2031. The mortgage loan bore interest at a fixed rate of 3.808% and was interest only until January 6, 2025, at which time the monthly payment became $61,800, which includes interest and principal based on a thirty-year amortization schedule. The mortgage loan included covenants for the Company to maintain a net worth of $13,250,000, excluding the assets and liabilities associated with the Franklin Square Property and for the Company to maintain liquid assets of no less than $1,000,000. The Company repaid the mortgage loan in March, 2026 and as of December 31, 2025 believes that it was compliant with these covenants. |
| (b) | The mortgage loan for the Ashley Plaza Property bears interest at a fixed rate of 3.75% and was interest only for the first twelve months. Beginning on October 1, 2020, the monthly payment became $52,795 for the remaining term of the loan, which includes interest at the fixed rate, and principal, based on a thirty-year amortization schedule. The mortgage loan include covenants for the Company to maintain a net worth of $11,400,000, excluding the liabilities associated with the mortgage loan for the Ashley Plaza Property, and for the Company to maintain liquid assets of no less than $1,140,000. As of March 31, 2026 and December 31, 2025, the Company believes that it is compliant with these covenants. |
| (c) | The mortgage loan for the Brookfield Property bears interest at a fixed rate of 3.90% and was interest only for the first twelve months. Beginning on November 1, 2020, the monthly payment became $22,876 for the remaining term of the loan, which includes interest at the fixed rate, and principal, based on a thirty-year amortization schedule. The mortgage loan includes covenants for the Company to maintain a net worth of $4,850,000, excluding the liabilities associated with the mortgage loan for the Brookfield Property, and for the Company to maintain liquid assets of no less than $485,000. As of March 31, 2026 and December 31, 2025, the Company believes that it is compliant with these covenants. |
| (d) | On June 13, 2022, the Company entered into a mortgage loan facility with Wells Fargo Bank (the “Wells Fargo Mortgage Facility”) in the principal amount of $18,609,500. The proceeds of this mortgage were used to finance the acquisition of the |
| | Salisbury Marketplace Property and to refinance the mortgages payable on the Lancer Center Property and the Greenbrier Business Center Property (the “Secured Properties”). The Wells Fargo Mortgage Facility bears interest at a fixed rate of 4.50% for a five-year term. The monthly payment was $103,438. The Company has provided an unconditional guaranty of the payment of and performance under the terms of the Wells Fargo Mortgage Facility. The Wells Fargo Mortgage Facility credit agreement includes covenants to maintain a debt service coverage ratio of not less than 1.50 to 1.00 on an annual basis, a combined minimum debt yield of 9.5% on the Secured Properties, and the maintenance of liquid assets of not less than $1,500,000. As of March 31, 2026 and December 31, 2025, the Company believes that it is compliant with these covenants. |
On October 23, 2025 and February 13, 2026, the Company sold the Salisbury Marketplace and Greenbrier Business Center Properties, respectively and used $5,145,479 and $7,000,000, respectfully, of the net proceeds of the sales to reduce the principal balance of the Wells Fargo Mortgage Facility in exchange for Wells Fargo releasing its security interest in the respective properties. As of December 31, 2025 the portion of the Wells Fargo Mortgage Facility allocated to the Greenbrier Business Center Property was included in mortgages payable, net, associated with assets held for sale on the Company’s condensed consolidated balance sheet. As of March 31, 2026, the monthly payment is $30,000 and the remaining outstanding balance of the Wells Fargo Mortgage Facility is secured solely by the Lancer Center Property.
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| Schedule of Company's mortgages payables, net, associated with assets held for sale |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, | | | | | | | Monthly | | Interest | | | | | 2026 | | | December 31, | | Property | | Payment | | Rate | | Maturity | | | (unaudited) | | 2025 | | Parkway Property (a) | | $ | 37,310 | | Variable | | November 2031 | | | — | | | 4,683,797 | | Wells Fargo Mortgage Facility (Greenbrier Business Center) (see note (d), above) | | | 46,561 | | 4.50 | % | | June 2027 | | | — | | | 6,356,947 | | Tesla DST Mortgage (b) | | | Interest only | | Variable | | November 2030 | | | 7,505,754 | | | 7,505,754 | | Total mortgages payable, net, associated with assets held for sale | | | | | | | | | | $ | 7,505,754 | | $ | 18,546,498 | |
| (a) | The interest rate for the mortgage loan for the Parkway Property was based on Term SOFR, with a margin of 236.44 basis points. Under the terms of the mortgage, the interest rate payable each month shall not change by greater than 1% during any six-month period and 2% during any 12-month period. As of December 31, 2025 the rate in effect for the Parkway Property mortgage was 6.24%. The monthly payment, which varies based on the interest rate in effect each month, included interest at the variable rate, and principal based on a thirty-year amortization schedule. The mortgage loan for the Parkway Property included a covenant to maintain a debt service coverage ratio of not less than 1.30 to 1.00 on an annual basis. The Company repaid the mortgage loan in February, 2026, and as of December 31, 2025, believes that it was compliant with these covenants. |
On November 7, 2025, the Company’s subsidiary, MDRR XXV DST 1, entered into a mortgage loan with Pinnacle Bank (the “Tesla DST Mortgage”). The Tesla DST Mortgage has a five year term, is interest only and bears interest at a variable rate based on Term SOFR plus 2.5%. As of March 31, 2026 and December 31, 2025, Term SOFR was 3.66% and 3.69%, respectively. The Tesla DST Mortgage is non-recourse to the Company, except for fraud, intentional misrepresentation, gross negligence, physical waste and other similar acts or omissions. Under the terms of the Tesla DST Mortgage, the failure of the borrower to maintain a minimum debt service coverage ration (“DSCR”) of 1.25 constitutes a “trigger event” under which borrower would be required to establish a cash management account to which all rents and profits would be deposited and remain under the control of the lender until the trigger event is terminated. The Tesla Pensacola Property’s DSCR will be tested on a trailing 12 month basis starting on the first anniversary of the issuance of the Tesla DST Mortgage. However, as of March 31, 2026 and December 31, 2025, the Company believes it is compliant with the DSCR requirement.
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| Schedule of interest expense, including amortization of capitalized issuance costs and payments received from the Company's interest rate protection transactions for the Hampton Inn Property and Clemson Best Western Property |
| | | | | | | | | | | | | | | | | | For the three months ended March 31, 2026 | | | (unaudited) | | | | | | Amortization | | Interest rate | | | | | | | | | Mortgage | | of discounts and | | protection | | Other | | | | | | Interest | | capitalized | | transaction | | interest | | | | | | Expense | | issuance costs | | payments | | expense | | Total | Franklin Square | | $ | 81,055 | | $ | 2,364 | | $ | — | | $ | — | | $ | 83,419 | Ashley Plaza | | | 95,620 | | | 4,357 | | | — | | | — | | | 99,977 | Brookfield Center | | | 42,592 | | | 2,838 | | | — | | | — | | | 45,430 | Parkway Center | | | 44,605 | | | — | | | (6,760) | | | — | | | 37,845 | Wells Fargo Mortgage Facility | | | 91,327 | | | 1,620 | | | — | | | 102 | | | 93,049 | Tesla Pensacola (Pinnacle Bank) | | | 119,115 | | | — | | | (22,740) | | | — | | | 96,375 | Total interest expense | | $ | 474,314 | | $ | 11,179 | | $ | (29,500) | | $ | 102 | | $ | 456,095 |
| | | | | | | | | | | | | | | | | | For the three months ended March 31, 2025 | | | (unaudited) | | | | | | Amortization | | Interest rate | | | | | | | | | Mortgage | | of discounts and | | protection | | Other | | | | | | Interest | | capitalized | | transaction | | interest | | | | | | Expense | | issuance costs | | payments | | expense | | Total | Franklin Square | | $ | 125,777 | | $ | 7,093 | | $ | — | | $ | — | | $ | 132,870 | Ashley Plaza | | | 97,877 | | | 4,358 | | | — | | | — | | | 102,235 | Brookfield Center | | | 43,563 | | | 2,838 | | | — | | | — | | | 46,401 | Parkway Center | | | 80,314 | | | 2,756 | | | (12,425) | | | — | | | 70,645 | Wells Fargo Mortgage Facility | | | 196,494 | | | 12,135 | | | — | | | — | | | 208,629 | Wells Fargo Line of Credit | | | — | | | — | | | — | | | 2,500 | | | 2,500 | Amortization and preferred stock dividends on mandatorily redeemable preferred stock | | | — | | | 2,404 | | | — | | | 5,066 | | | 7,470 | Other interest | | | — | | | — | | | — | | | 2,266 | | | 2,266 | Total interest expense | | $ | 544,025 | | $ | 31,584 | | $ | (12,425) | | $ | 9,832 | | $ | 573,016 |
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| Schedule of interest accrued and accumulated amortization of capitalized issuance costs |
| | | | | | | | | | | | | | | As of March 31, 2026 | | | | | | | | | (unaudited) | | As of December 31, 2025 | | | | | | Accumulated | | | | | Accumulated | | | | | | amortization of | | | | | amortization | | | Accrued | | capitalized | | Accrued | | of capitalized | | | interest | | issuance costs | | interest | | issuance costs | Franklin Square | | $ | — | | $ | — | | $ | 42,682 | | $ | 115,852 | Ashley Plaza | | | — | | | 114,757 | | | — | | | 110,399 | Brookfield Center | | | — | | | 73,783 | | | — | | | 70,945 | Parkway Center | | | — | | | — | | | 24,678 | | | — | Wells Fargo Mortgage Facility | | | — | | | 36,199 | | | — | | | 34,580 | Tesla Pensacola (Pinnacle Bank) | | | 33,196 | | | — | | | (9,114) | (1) | | — | Total | | $ | 33,196 | | $ | 224,739 | | $ | 58,246 | | $ | 331,776 |
| (1) | Reflects the payment due for the month of December 2025 under the Interest Rate Swap for the Tesla DST Mortgage which was received on January 2, 2026. |
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| Schedule of principal repayments on indebtedness |
| | | | | | | | | | | | Mortgages Payable | | Mortgages Payable Associated with Assets Held for Sale | | | Total | For the remaining nine months ending December 31, 2026 | | $ | 370,469 | | $ | — | | $ | 370,469 | 2027 | | | 5,058,202 | | | — | | | 5,058,202 | 2028 | | | 379,235 | | | — | | | 379,235 | 2029 | | | 13,499,194 | | | — | | | 13,499,194 | 2030 | | | — | | | 7,710,000 | | | 7,710,000 | Total principal payments and debt maturities | | | 19,307,100 | | | 7,710,000 | | | 27,017,100 | Less unamortized issuance costs | | | (110,163) | | | (204,246) | | | (314,409) | Net principal payments and debt maturities | | $ | 19,196,937 | | $ | 7,505,754 | | $ | 26,702,691 |
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