Item 2. Properties
ITEM 2. PROPERTIES
We invest in a diverse multi-tenant portfolio of real estate assets primarily consisting of office, industrial, medical and retail properties located throughout the United States. As of December 31, 2021, we owned or had an equity interest in nine office, industrial or retail buildings totaling approximately 221,000 rentable square feet. In addition, we own 36.8% of a Tenant in Common that comprises approximately 15,000 square foot retail building. We directly manage or engage a 3 rd party property manager to manage the operations and leasing of our properties. Substantially all of our revenues consist of base rents received under leases that generally have terms that range from one to seven years. We estimate that approximately 77% of our existing leases as of December 31, 2021 contain contractual rent increases that provide for increases in the base rental payments. Our tenants consist of regional and national businesses. Our properties generally attract a mix of diversified tenants creating lower risk in periods of economic fluctuations. Our largest tenants are the General Service Administration, PRA Group and Pratt & Whitney, all who have an ‘BB+’ credit rating or better from S&P Global Ratings and contributed approximately 65% of our portfolio’s annualized base rent as of December 31, 2021.
Geographic Diversification Table
The following tables show a list of properties we owned as of December 31, 2021, grouped by the state where each of our investments is located.
Office, Industrial and Retail Properties as of December 31, 2021
Number of
Properties
Aggregate
Square
Feet
Approximate
% of
Square Feet
Current
Base
Annual
Rent
Approximate
% of
Aggregate
Annual
Rent
Alabama
1
59,091
26.8
%
684,996
18.1
%
Florida
3
13,526
6.1
%
451,450
11.9
%
Colorado
1
30,701
13.9
%
353,061
9.3
%
North Carolina
1
7,543
3.4
%
161,346
4.3
%
Virginia
2
106,996
48.4
%
2,012,121
53.0
%
District of Columbia
1
3,000
1.4
%
129,804
3.4
%
Total
9
220,857
100
%
3,792,778
100.0
%
Subsequent to December 31, 2021, we acquired the following:
31
•
On January 7, 2022, we completed the acquisition of a 11,000 square-foot single-tenant retail building in Chicago, Illinois occupied by Fresenius Medical Care for total consideration of approximately $3.1 million.
•
On January 14, 2022, we completed the acquisition of a 2,600 square foot single-tenant retail building in Tampa, Florida occupied by Starbucks for total consideration of approximately $2.2 million.
•
On March 9, 2022, we acquired the leasehold interest in a ground lease and corresponding assignment of an 88,400 square foot single-tenant retail building in Tucson, Arizona occupied by Kohl’s for total consideration of approximately $7.3 million.
Top Tenants Physical Occupancy Table as of December 31, 2021
Tenant
Number of
Leases
Annualized
Base Rent
% of Total
Annualized
Base Rent
General Services Administration of the United States
2
1,043,822
28%
PRA Holdings Inc.
1
742,850
20%
Pratt & Whitney
1
684,996
18%
Maersk Line Limited
1
386,795
10%
Starbucks
1
182,500
5%
BestBuy
1
353,061
9%
Irby Construction Company
1
148,200
4%
Sherwin Williams
1
120,750
3%
7-Eleven
1
129,804
3%
Total
3,792,778
100%
Lease Expiration Tables
The following table sets forth lease expirations for our properties as of December 31, 2021, assuming that none of the tenants exercise their renewal options.
Expiration Year
Number of
Leases
Expiring
Square
Footage
Annualized
Base Rent
% of Total
Annualized
Base Rent
2022
1
22,247
$
386,795
10%
2023
-
—
—
2024
1
7,826
148,200
4%
2025
-
—
—
2026
1
3,000
129,804
3%
Thereafter
7
187,784
3,127,979
82%
Total
10
220,857
3,792,778
100%
Physical Occupancy Table for Last 5 Years
All properties have been 100% occupied during our ownership.
32
Annualized Base Rent Per Square Foot for Last 3 Years
The following table presents the average effective annual rent per square foot for each of our properties we owned as of December 31, 2021 for the prior three years (or shorter depending on how long we have owned the applicable property).
Property
Type
Property
Location
Rentable
Sq. Ft.
Tenant(s)
Annualized
Base Rent
Annualized
Base Rent
Sq. Ft. 2019
Annualized
Base Rent
Sq. Ft. 2020
Annualized
Base Rent
Sq. Ft. 2021
Retail
Washington, DC
3,000
7-Eleven Corporation
$
129,804
$
39.33
$
42.28
$
43.27
Retail
Tampa, FL
2,200
Starbucks
$
182,500
$
82.95
$
82.95
$
82.95
Industrial
Huntsville, AL
59,091
Pratt & Whitney Automation, Inc.
$
684,996
$
11.59
$
11.59
$
11.59
Office
Norfolk, VA
49,902
General Services Administration of the USA
$
882,476
$
17.68
$
17.68
$
17.68
Norfolk, VA
22,247
Maersk Line, Limited
$
386,795
$
16.35
$
15.43
$
17.39
Office
Norfolk, VA
34,847
PRA Holdings, Inc.
$
742,850
$
20.49
$
20.80
$
21.32
Retail
Tampa, FL
3,500
Sherwin- Williams
$
120,750
$
34.50
$
34.50
Office
Manteo, NC
7,543
General Services Administration of the USA
$
161,346
$
21.39
Office
Tampa, FL
7,826
Irby Construction Company
$
148,200
$
18.94
Retail
Grand Junction, CO
30,701
Best Buy
$
353,061
$
11.50
ITEM 3. LEGAL PROCEEDINGS
From time to time, we may be party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business. We are not currently subject to any lawsuits, claims or other legal proceedings.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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PART II.