Item 2. Properties
Item 2. Properties.
The executive office of the Company is located at 1 Flowerfield, Suite 24, St. James, New York and consists of approximately 3,256 square feet.
Real Estate Investments
The Company owns a 68-acre property located in St. James, in the Town of Smithtown on the North Shore of Suffolk County, Long Island, New York. The property currently has 127,485 square feet of rental space and is approximately 75% occupied by 28 tenants. In addition, the Company owns a medical office park which consists of seven buildings located in Cortlandt Manor, New York, just outside the city of Peekskill, New York. The property has 33,871 square feet of rental space and is currently 73% occupied by 4 tenants.
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During 2020 and 2019, land entitlement costs incurred were approximately $1,014,000 and $1,422,000, respectively. The Company continues to believe the pursuit of entitlements will maximize the value of our properties and the estimated distributions.
Following the Merger, effective September 1, 2015, the Company adopted the liquidation basis of accounting and therefore reports the land and buildings on the Consolidated Statement of Net Assets at net realizable value. The net realizable value on December 31, 2020 is estimated to be $39,050,000. This value includes some but not all of the increase in value the Company believes is achievable from enhancement efforts in Flowerfield and Cortlandt Manor.
The average age of the buildings on our properties is approximately 60 years at Flowerfield and 30 years at Cortlandt Manor. All facilities continually undergo maintenance repair cycles for roofs, paved areas, and building exteriors. The general condition of internal infrastructure, HVAC, electrical and plumbing is considered average for facilities of this age. The grounds feature landscaping, are neatly groomed and well maintained.
Approximately 5 acres of the 68 acres at Flowerfield, are non-contiguous to the Flowerfield industrial park and zoned residential. In May 2020, the Company’s wholly owned subsidiary, GSD Flowerfield, LLC, entered into a purchase and sale agreement for the sale of the 5-acre lot (See “ Properties Under Contract ” above).
There are four buildings in the Flowerfield Industrial Park with rental unit sizes ranging from 130 to 26,573 square feet. Given the location and size of rental units, the Flowerfield Industrial Park attracts tenants ranging in size from Stony Brook University and the Stony Brook University Hospital to many smaller companies that are not dependent on extensive material or product handling. In the five buildings located in the Cortlandt Medical Center, the rental size units range from 1,200 to 3,943 square feet and consist primarily of medical professionals.
The Company maintains liability umbrella policies and has insured certain buildings and rent receipts predicated on an analysis of risk, exposure and loss history. It is management's opinion that the premises are adequately insured.
The following table sets forth certain information as of December 31, 2020 for each of the properties:
Annual
Number Of
Base
Tenants Who
Rentable
Annual
Rent
Number
Occupy 10%
Square
Percent
Base
Per Leased
Of
Or More Of
Property
Feet
Leased
Rent
SQ. FT.
Tenants
Rentable Sq. Ft.
Flowerfield Industrial Park
127,485
75
%
$
1,390,000
$
14.48
28
2
Cortlandt Medical Center
33,871
73
%
$
740,000
$
29.76
4
0
All Locations
161,356
75
%
$
2,130,000
$
17.62
32
2
The following table sets forth scheduled lease expirations on the properties as of December 31, 2020:
% of Gross Annual
Number of
Square
Total
Rental Revenues
Leases
Feet
Annual
Represented
Fiscal Year End
Expiring
Expiring
Rent
By Such Leases
2021
10
16,000
$
313,000
20.07
%
2022
12
18,000
240,000
15.44
%
2023
6
9,000
141,000
9.04
%
2024
-
-
-
-
%
2025
2
29,000
564,000
36.17
%
Thereafter
3
26,000
300,000
19.28
%
The properties are located in St. James and Cortlandt Manor, both of which are in New York State. In June 2017, the Company filed a subdivision application for the Flowerfield property along with the previously sold catering facility totaling approximately 74 acres with the Town of Smithtown. The Company has an additional 5.2 acres bordering the industrial park that is currently zoned residential and is not part of the application. Additionally, the Company filed an application with the Town of Cortlandt Manor on the development of that property on March 31, 2017 (see, “—Property Value Enhancement”, above).
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