Gyrodyne, LLC 10-K

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 63-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 127,421 square feet of rental space and is approximately 83% occupied by 36 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 77% occupied by 3 tenants.   During 2021 and 2020, land entitlement costs incurred were approximately $567,000 and $1,014,000, 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, 2021 is estimated to be $42,545,000. 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.   24     The average age of the buildings on our properties is approximately 61 years at Flowerfield and 31 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.   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, 2021 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     127,421       83 %   $ 1,538,600     $ 14.62       36       2   Cortlandt Medical Center     33,871       77 %   $ 803,800     $ 30.86       3       2   All Locations     161,292       81 %   $ 2,342,400     $ 17.84       39       3     The following table sets forth scheduled lease expirations on the properties as of December 31, 2021:                               % of Gross Annual       Number of     Square     Total     Rental Revenues       Leases     Feet     Annual     Represented   Fiscal Year End   Expiring     Expiring     Rent     By Such Leases   2022     19       32,000     $ 551,000       23.93 % 2023     10       14,000       178,000       7.74 % 2024     4       4,000       47,000       2.05 % 2025     3       29,000       581,000       25.21 % 2026     7       31,000       775,000       33.66 % Thereafter     1       17,000       171,000       7.41 %   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. 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).