Legacy Housing Corp 10-K

ITEM 2. PROPERTIES. Facilities The following table sets forth certain information with respect to the facilities where our company operates: ​ ​ ​ ​ ​ ​ ​ ​ Date of ​ ​ ​ ​ Commencement ​ Owned / ​ Square Location ​ of Operations ​ Leased ​ Feet Manufacturing/Warehouse Facilities Fort Worth, TX 2005 Owned 96,880 Commerce, TX 2007 Owned 129,600 Eatonton, GA 2016 Leased 388,000 Retail Locations Acworth, GA ​ 2019 ​ Leased ​ 2,369 Albany, GA 2018 Leased 1,536 Asheboro, NC 2017 Leased 1,472 Athens, GA 2016 Leased 2,016 Augusta, GA 2018 Leased 3,136 Canton, TX 2018 Leased 2,362 Jennings, LA 2017 Owned 2,432 Minden, LA 2017 Leased 2,369 Mt. Pleasant, TX 2016 Leased 1,792 Sapulpa, OK ​ 2020 ​ Leased ​ 1,960 Greenville, TX 2016 Owned 1,256 Gainesville, TX 2017 Owned 2,240 Oklahoma City, OK 2016 Owned 2,100 Corporate/Regional Headquarters Bedford, TX 2018 Leased 8,020 Norcross, GA 2018 Leased 3,358 We own the manufacturing facilities and the land on which the facilities are located in Fort Worth, Texas and Commerce, Texas. We believe that these facilities are adequately maintained and suitable for the purposes for which they are used. We currently lease our facility in Eatonton, Georgia from the Putnam Development Authority. In December 2016, we entered into a payment in lieu of taxes (“PILOT”) arrangement commonly offered in Georgia by local community development programs to encourage industry development. The net effect of the PILOT arrangement is to provide us with incentives through the abatement of local, city and county property taxes and to provide financing for improvements of our Georgia plant (the “Project”). As part of the PILOT arrangement, the Putnam County Development Authority provided us with a credit facility for up to $10 million that can be drawn upon to fund Project improvements and capital expenditures as defined in the credit facility. If funds are drawn, we would pay transaction costs and debt service payments. The credit facility requires interest payments of 6.0% per annum on outstanding balances, which are due each December 1 through maturity on December 1, 2021, at which time all unpaid principal and interest are due. The credit facility is collateralized by the assets of the Project. As of December 31, 2021, we had not drawn down on this credit facility. We currently operate 13 retail locations. Each retail location sits on approximately five to seven acres of land. We lease 9 of the 13 retail locations we operate in the business, pursuant to leases expiring from 2022 to 2028. Total rent expense for the years ended December 31, 2021 and 2020 was $698,000 and $602,000, respectively. ​ 18 Table of Contents