STRATEGIC REALTY TRUST, INC., 10-Q filed on 11/13/2024
Quarterly Report
v3.24.3
Document And Entity Information - shares
 9 Months Ended
Sep. 30, 2024
Nov. 04, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 000-54376  
Entity Registrant Name STRATEGIC REALTY TRUST, INC.  
Entity Incorporation, State or Country Code MD  
Entity Tax Identification Number 90-0413866  
Entity Address, Address Line One 1 S. Wacker Dr, Suite 3210  
Entity Address, City or Town Chicago,  
Entity Address, State or Province IL  
Entity Address, Postal Zip Code 60606  
City Area Code 312  
Local Phone Number 878-4860  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Entity Central Index Key 0001446371  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   10,752,966
v3.24.3
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Investments in real estate    
Real Estate, Liquidation Value $ 13,000 $ 26,260
Cash, cash equivalents and restricted cash 2,049 1,569
Accounts and Other Receivables, Net, Current 300 446
Other Assets 0 29
Total assets 15,349 28,304
LIABILITIES    
Liabilities for Estimated Costs in Excess of Estimated Receipts During Liquidation 2,563 4,718
Notes Payable, Fair Value Disclosure 8,152 18,000
Accounts payable and accrued expenses 415 272
Amounts due to affiliates. 65 34
Other Liabilities 27 118
TOTAL LIABILITIES (1) 11,222 23,142
Net Assets $ 4,127 $ 5,162
v3.24.3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
$ in Thousands
 9 Months Ended
Sep. 30, 2024
USD ($)
Other income:  
Liquidation Basis of Accounting, Liquidation Plan $ 77
v3.24.3
ORGANIZATION AND BUSINESS
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND BUSINESS
1. ORGANIZATION AND BUSINESS
Strategic Realty Trust, Inc. (the “Company”) was formed on September 18, 2008, as a Maryland corporation. Effective August 22, 2013, the Company changed its name from TNP Strategic Retail Trust, Inc. to Strategic Realty Trust, Inc. The Company believes it qualifies as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), and has elected REIT status beginning with the taxable year ended December 31, 2009, the year in which the Company began material operations.
Since the Company’s inception, its business has been managed by an external advisor. The Company has no direct employees and all management and administrative personnel responsible for conducting the Company’s business are employed by its advisor. As of September 30, 2024, the Company was externally managed and advised by SRT Advisor, LLC, a Delaware limited liability company (the “Advisor”) pursuant to an advisory agreement with the Advisor (the “Advisory Agreement”) initially executed on August 10, 2013, and subsequently renewed every year through 2024. The current term of the Advisory Agreement terminates on August 9, 2025. The advisor is an affiliate of PUR Management LLC (“PUR”), which is an affiliate of L3 Capital, LLC. L3 Capital, LLC is a real estate investment firm focused on institutional quality, value-add, prime urban retail and mixed-use investment within first tier U.S. metropolitan markets.
The sole purpose of the Company is to wind up the Company’s affairs and the liquidation of the Company’s assets with no objective to continue or to engage in the conduct of a trade or business, except as necessary for the orderly liquidation of the Company’s assets.
Substantially all of the Company’s business is conducted through Strategic Realty Operating Partnership, L.P. (the “OP”). During the Company’s initial public offering (“Offering”), as the Company accepted subscriptions for shares of its common stock, it transferred substantially all of the net proceeds of the Offering to the OP as a capital contribution. The Company is the sole general partner of the OP. As of September 30, 2024 and December 31, 2023, the Company owned 98.1% of the limited partnership interests in the OP.
As of September 30, 2024, the Company had 10,752,966 shares of common stock issued and outstanding and 204,323 of convertible common units issued and outstanding.
On May 12, 2023, the board of directors unanimously approved the sale of all of the Company’s assets and the dissolution of the Company pursuant to the terms of a plan of complete liquidation and dissolution of the Company (the “Plan of Liquidation”). The principal purpose of the Plan of Liquidation is to maximize stockholder value by selling the Company’s assets, paying its debts and distributing the net proceeds from liquidation to the Company’s stockholders. On August 23, 2023 the Company’s stockholders approved the Plan of Liquidation.
The Company expects any future liquidity to its stockholders will be provided in the form of liquidating distributions. The Company expects to distribute all of the net proceeds from liquidation to its stockholders within 24 months from August 23, 2023. The Company can give no assurance regarding the timing of final asset dispositions in connection with the implementation of the Plan of Liquidation, the sale prices it will receive for its remaining assets, and the amount or timing of any liquidating distributions to be received by its stockholders.
On September 12, 2024, the Company consummated the disposition of the 400 Grove Street, 8 Octavia Street, Fulton Shops, 450 Hayes, and 388 Fulton properties located in San Francisco, California for approximately $10.9 million in cash, before customary closing and transaction costs. The disposition resulted in net cash proceeds after customary closing and transaction costs of $9.8 million which was used to partially pay down the SRT Loan (as defined in Note 7).
As of September 30, 2024 the Company managed a portfolio of one wholly-owned income-producing retail property located in Los Angeles, California and one improved land parcel,located in Hospira, California. As of September 30, 2024, the Company’s retail property had approximately 11,000 rentable square feet of retail space and the rentable space at the property was 100% leased.
v3.24.3
Accounting Changes and Error Corrections
 9 Months Ended
Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]  
Liquidation Basis of Accounting
2. PLAN OF LIQUIDATION
The Plan of Liquidation authorizes the Company to undertake an orderly liquidation. In an orderly liquidation, the Company intends to sell or otherwise dispose of its remaining properties, pay or otherwise settle all of its known liabilities, provide for the payment of its unknown or contingent liabilities, distribute any remaining cash to its stockholders, wind up its operations and dissolve. The Company is authorized to provide for the payment of any unascertained or contingent liabilities and may do so by purchasing insurance, by establishing a reserve fund or in other ways.
The Plan of Liquidation enables the Company to sell any and all of its assets without further approval of its stockholders and provides that the amounts and timing of liquidating distributions will be determined by the Company’s board of directors or, if a liquidating trust is formed, by the trustees of the liquidating trust, in their discretion. Pursuant to applicable REIT rules, liquidating distributions the Company pays pursuant to the Plan of Liquidation will qualify for the dividends paid deduction, provided that they are paid within 24 months of the August 23, 2023 approval of the plan by the Company’s stockholders. However, if the Company cannot sell its properties and pay its debts within such time period, or if the board of directors determines that it is otherwise advisable to do so, the Company may transfer and assign its remaining assets to a liquidating trust. Upon such transfer and assignment, the Company’s stockholders would receive beneficial interests in the liquidating trust. The liquidating trust would pay or provide for all of the Company’s liabilities and distribute any remaining net proceeds from liquidation to the holders of beneficial interests in the liquidating trust. If the Company is not able to sell its properties and pay its debt within the 24-month period and the remaining assets are not transferred to a liquidating trust, any distributions made during the 24 months may not qualify for the dividends paid deduction and may increase the Company’s tax liability.
The Company’s expectations about the implementation of the Plan of Liquidation and the amount of any liquidating distributions that the Company pays to its stockholders and when the Company will pay them are subject to risks and uncertainties and are based on certain estimates and assumptions, one or more of which may prove to be incorrect. As a result, the actual amount of any liquidating distributions the Company pays to its stockholders may be more or less than the Company estimates and the liquidating distributions may be paid later than the Company predicts. There are many factors that may affect the amount of liquidating distributions the Company will ultimately pay to its stockholders. If the Company underestimates its existing obligations and liabilities or the amount of taxes, transaction fees and expenses relating to the liquidation and dissolution or if unanticipated or contingent liabilities arise, including with respect to debt service or default interest expense related to the SRT Loan, the amount of liquidating distributions ultimately paid to the Company’s stockholders could be less than estimated. Moreover, the liquidation value will fluctuate over time in response to developments related to individual assets in the Company’s portfolio and the management of those assets, in response to the real estate and finance markets, based on the amount of net proceeds received from the disposition of the remaining assets and due to other factors. Accordingly, it is not possible to precisely predict the timing of any liquidating distributions the Company pays to it stockholders or the aggregate amount of liquidating distributions that the Company will ultimately pay to its stockholders. No assurance can be given that any liquidating distributions the Company pays to its stockholders will equal or exceed the estimate of net assets in liquidation presented on the Consolidated Statement of Net Assets as of September 30, 2024.
The Company expects to comply with the requirements necessary to continue to qualify as a REIT through the completion of the liquidation process, or until such time as any remaining assets are transferred into a liquidating trust. The board of directors shall use commercially reasonable efforts to continue to cause the Company to maintain its REIT status; provided, however, that the board of directors may elect to terminate the Company’s status as a REIT if it determines that such termination would be in the best interest of the stockholders.
v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation and Basis of Presentation
The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”), including Subtopic 205-30, “Liquidation Basis of Accounting”, as indicated, and the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements.
Pursuant to the Company’s stockholders’ approval of the Plan of Liquidation, the Company adopted the liquidation basis of accounting as of and for the periods subsequent to July 1, 2023 (as the approval of the Plan of Liquidation by the Company’s stockholders became imminent during the month of July 2023 based on the results of the Company’s solicitation of proxies from its stockholders for their approval of the Plan of Liquidation). Accordingly, on July 1, 2023, assets were adjusted to their estimated net realizable value, or liquidation value, which represents the estimated amount of cash or other consideration that the Company expects to realize through the disposal of assets as it carries out the Plan of Liquidation. The liquidation values of
the Company’s remaining real estate properties are presented on a net realizable value basis. Liabilities are carried at their contractual amounts due or estimated settlement amounts.
The Company accrues costs and income that it expects to incur and earn through the completion of its liquidation, including the estimated amount of cash or other consideration that the Company expects to realize through the disposal of its assets and the estimated costs to dispose of its assets, to the extent it has a reasonable basis for estimation. These amounts are classified as a liability for estimated costs in excess of estimated receipts during liquidation on the Condensed Consolidated Statement of Net Assets. Actual costs and income may differ from amounts reflected in the financial statements because of the inherent uncertainty in estimating future events. These differences may be material. See Note 2, “Plan of Liquidation” and Note 4, “Liabilities for Estimated Costs in Excess of Estimated Receipts During Liquidation” for further discussion. Actual costs incurred but unpaid as of September 30, 2024 are included in accounts payable and accrued expenses, due to affiliates and other liabilities on the Condensed Consolidated Statement of Net Assets.
Net assets in liquidation represents the remaining estimated liquidation value available to stockholders upon liquidation. Due to the uncertainty in the timing of the sale or transfer of the Company’s remaining real estate properties and the estimated cash flows from operations, actual liquidation costs and sale proceeds may differ materially from the amounts estimated.
As a result of the change to the liquidation basis of accounting, the Company no longer presents a Consolidated Balance Sheet, a Consolidated Statement of Operations, a Consolidated Statement of Changes in Equity or a Consolidated Statement of Cash Flows.
The interim unaudited condensed consolidated financial statements include the accounts of the Company, the OP, their direct and indirect owned subsidiaries, and the accounts of joint ventures that are determined to be variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s condensed consolidated financial position, results of operations and cash flows have been included.
The Company evaluates the need to consolidate joint ventures and variable interest entities based on standards set forth in ASC Topic 810, Consolidation (“ASC 810”). In determining whether the Company has a controlling interest in a joint venture or a variable interest entity and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the partners/members, as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary.
Use of Estimates
Certain of the Company’s accounting estimates are particularly important for an understanding of the Company’s financial position and results of operations and require the application of significant judgment by management. As a result, these estimates are subject to a degree of uncertainty. The Company is required to estimate all costs and revenue it expects to incur and earn through the end of liquidation including the estimated amount of cash it expects to collect on the disposal of its assets and the estimated costs to dispose of its assets. All of the estimates and evaluations are susceptible to change and actual results could differ materially from the estimates and evaluations.
Real Estate - Liquidation Basis of Accounting
As of July 1, 2023, the Company’s investments in real estate were adjusted to their estimated net realizable value, or liquidation value, to reflect the change to the liquidation basis of accounting. The liquidation value represents the estimated amount of cash or other consideration the Company expects to realize through the disposal of its assets, including any residual value attributable to lease intangibles, as it carries out the Plan of Liquidation. The liquidation value of investments in real estate was based on offers the Company received for the sale of the properties, which the Company is marketing for sale. The liquidation values of the Company’s investments in real estate are presented on an undiscounted basis and investments in real estate are no longer depreciated. Subsequent to July 1, 2023, all changes in the estimated liquidation value of the investments in real estate are reflected as a change to the Company’s net assets in liquidation.
Rents and Other Receivables
In accordance with the liquidation basis of accounting, as of July 1, 2023, rents and other receivables were adjusted to their net realizable value. The Company periodically evaluates the collectibility of amounts due from tenants. Any changes in the collectibility of the receivables are reflected as a change to the Company’s net assets in liquidation.
Revenue Recognition - Liquidation Basis of Accounting
Under the liquidation basis of accounting, the Company has accrued all income that it expects to earn through the completion of its liquidation to the extent it has a reasonable basis for estimation. Revenue from tenants is estimated based on the contractual in-place leases and projected leases through the anticipated disposition date of the property. These amounts are presented net of estimated expenses and other liquidation costs and are classified in liabilities for estimated costs in excess of estimated receipts during liquidation on the Condensed Consolidated Statement of Net Assets.
Accrued Liquidation Costs
In accordance with the liquidation basis of accounting, the Company accrues for certain estimated liquidation costs to the extent it has a reasonable basis for estimation. These consist of legal fees, dissolution costs, final audit/tax costs, insurance, and transfer agent related costs.
Derivative Instruments and Hedging Activities
The Company measures derivative instruments at fair value and records them as assets or liabilities, depending on its rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in changes in net assets in liquidation on the condensed consolidated statement of changes in net assets. The ineffective portion of a derivative’s change in fair value is recognized in liabilities for estimated costs in excess of estimated receipts during liquidation on the Condensed Consolidated Statement of Net Assets.
The Company does not net its derivative fair values or any existing rights or obligations to cash collateral. The Company does not use derivatives for trading or speculative purposes. For the periods presented, the Company's derivative, comprised of an interest rate cap, qualified and was designated as a cash flow hedge, and was not deemed ineffective.
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents represent current bank accounts and other bank deposits free of encumbrances and having maturity dates of three months or less from the respective dates of deposit. The Company limits cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk in cash.
Restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, debt service and leasing costs held by lenders.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the condensed consolidated balance sheets that sum to the total of the same such amounts shown on the condensed consolidated statement of net assets (amounts in thousands):
September 30, 2024December 31, 2023
Cash and cash equivalents$323 $1,250 
Restricted cash1,726 319 
Total cash, cash equivalents, and restricted cash$2,049 $1,569 
Recent Accounting Pronouncements
There are no new accounting pronouncements that are applicable or relevant to the Company under the liquidation basis of accounting.
v3.24.3
Other Liabilities
 9 Months Ended
Sep. 30, 2024
Other Liabilities Disclosure [Abstract]  
Liquidation Liabilities
4. LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION
The liquidation basis of accounting requires the Company to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the Plan of Liquidation. As of September 30, 2024, the Company estimated that it will have costs in excess of estimated receipts during the liquidation process. These amounts can vary significantly due to, among other things, the timing and estimates for executing and renewing leases, estimates of tenant improvement costs and capital expenditures, the timing of property sales, direct costs incurred to complete the sales, the timing and amounts associated with discharging known and contingent liabilities and the costs associated with the winding down of operations. These costs are estimated and are anticipated to be paid out over the liquidation period.
The change in the liabilities for estimated costs in excess of estimated receipts during liquidation as of September 30, 2024 is as follows (amounts in thousands):
December 31, 2023Cash Payments (Receipts)Remeasurement of Assets and LiabilitiesSeptember 30, 2024
Liabilities:
Estimated net outflows from investments in real estate$(443)$294 $(77)$(226)
Liquidation transaction costs(2,490)1,152 65 (1,273)
Corporate expenditures(1,785)632 89 (1,064)
(4,718)2,078 77 (2,563)
Total liabilities for estimated costs in excess of estimated receipts during liquidation$(4,718)$2,078 $77 $(2,563)
v3.24.3
Equity
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Net Assets in Liquidation Disclosure
5. NET ASSETS IN LIQUIDATION
Net assets in liquidation decreased by approximately 1.0 million during the nine months ended September 30, 2024 as follows (in thousands):
Change in net assets in liquidation
Change in liquidation value of investments in real estate$(1,112)
Change in estimated cash flow during liquidation77 
Other changes, net— 
Changes in net assets in liquidation$(1,035)
During the nine months ended September 30, 2024, the estimated net realizable value of real estate decreased by $2.6 million. The primary reason for the decrease in net assets in liquidation was due to a net decrease in the sale price of the properties in San Francisco which was adjusted to the actual sales price pursuant to the disposition of the properties consummated on September 12, 2024 and a decrease in the net realizable value of the remaining properties located in Los Angeles, California and Hospira, California.
The net assets in liquidation as of September 30, 2024 would result in the payment of estimated liquidating distributions of approximately $0.38 per share of common stock to the Company’s stockholders of record as of September 30, 2024. This estimate of liquidating distributions includes projections of costs and expenses to be incurred during the estimated period required to complete the Plan of Liquidation. There is inherent uncertainty with these estimates and projections, and they could change materially based on the timing of the disposition or transfer of the Company’s remaining real estate properties, the performance of the Company’s remaining assets and any changes in the underlying assumptions of the projected cash flows from such properties. See Note 2,“Plan of Liquidation.”
v3.24.3
REAL ESTATE INVESTMENTS REAL ESTATE INVESTMENTS
 3 Months Ended
Sep. 30, 2024
Real Estate [Abstract]  
REAL ESTATE INVESTMENTS
6. REAL ESTATE
As of September 30, 2024 the Company managed a portfolio of one wholly-owned income-producing retail property, located in Los Angeles, California and one improved land parcel, located in Hospira, California. As of September 30, 2024, the Company’s retail property had approximately 11,000 rentable square feet of retail space. As of September 30, 2024, the rentable space at the property was 100% leased. As of September 30, 2024, the Company’s liquidation value of real estate was approximately $13.0 million.
As a result of adopting the liquidation basis of accounting in July 2023, as of September 30, 2024, real estate properties were recorded at their estimated liquidation value, which represents the estimated gross amount of cash or other consideration the Company expects to realize through the disposition or transfer of its real estate properties owned as of September 30, 2024 as it carries out its Plan of Liquidation.
v3.24.3
NOTES PAYABLE, NET
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
NOTES PAYABLE
7. NOTES PAYABLE, NET
On December 24, 2019, the Company entered into a Loan Agreement (the “SRT Loan Agreement”) with PFP Holding Company, LLC (the “SRT Lender”) for a non-recourse secured loan (the “SRT Loan”).
The SRT Loan is secured by a first deed of trust on the Silverlake Collection located in Los Angeles, California. Prior to their disposition on September 12, 2024, the San Francisco Assets secured the SRT Loan as well. The SRT Loan matured on January 9, 2024, without extension pursuant to its terms as a result of the Company’s failure to satisfy the necessary financial covenants for a one-year extension.
On January 18, 2024, the SRT Lender notified the Company that it was in maturity default on the SRT Loan following its failure to pay the amount of the debt outstanding and due to the SRT Lender on the January 9, 2024 maturity date. As a result of the default, the Company is accruing interest at the default interest rate in effect of 5% above the rate that would otherwise be in effect (30-day SOFR, plus 2.8%). In addition, the SRT Lender could foreclose on the Silverlake Collection that secures the SRT Loan in satisfaction of the debt.
The Silverlake Collection securing the SRT Loan is being marketed for sale in connection with the implementation of the Plan of Liquidation and any net sales proceeds will be due to the lender until the debt is satisfied.
As of September 30, 2024, the SRT Loan had a principal balance of approximately $8.2 million. The SRT Loan is a floating Secured Overnight Financing Rate (“SOFR”) rate loan which bears interest at 30-day SOFR (with a floor of 1.50%) plus 2.80%. The default rate is equal to 5% above the rate that otherwise would be in effect. Monthly payments are interest-only with the entire principal balance and all outstanding interest due at maturity. As of September 30, 2024, interest expense payable was $1.1 million and default interest payable was $0.7 million. Effective January 9, 2023, the Company entered into a derivative transaction with a financial institution with a notional amount of $18,000,000, representing an interest rate cap. The Company received a payment from the counterparty if the rate on SOFR exceeded 3.5%. The instrument is measured at fair value which was determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets and is classified as Level 2 in the fair value hierarchy. The Company paid $260 thousand for the derivative and it matured on January 9, 2024.
On September 12, 2024, the Company consummated the disposition of the San Francisco Assets for approximately $10.9 million in cash, before customary closing and transaction costs. The disposition resulted in net cash proceeds after customary closing and transaction costs of $9.8 million which was used to repay the SRT Loan and the San Francisco assets were released as security from the deed of trust. The outstanding balance on the SRT Loan after the sale of the San Francisco Assets is approximately $8.2M and is secured by a deed of trust at the Silverlake Collection.
Pursuant to the SRT Loan, the Company must comply with certain matters contained in the loan documents including but not limited to, (i) requirements to deliver audited and unaudited financial statements, SEC filings, tax returns, pro forma budgets, and quarterly compliance certificates, and (ii) minimum limits on the Company’s liquidity and tangible net worth. The SRT Loan contains customary covenants, including, without limitation, covenants with respect to maintenance of properties and insurance, compliance with laws and environmental matters, covenants limiting or prohibiting the creation of liens, and transactions with affiliates. As of September 30, 2024, the Company was not in compliance with the loan requirements and was in maturity default as discussed above.
In connection with the SRT Loan, the Company executed customary non-recourse carveout and environmental guaranties, together with limited additional assurances with regard to the condominium structures of the San Francisco assets.
The following is a schedule of future principal payments for all of the Company’s notes payable outstanding as of September 30, 2024 (amounts in thousands): 
2024(1)
$8,152 
Total future principal payments8,152 
Notes payable (2)
$8,152 
(1)As discussed above, on January 18, 2024, the Company was notified of its maturity default on the SRT Loan following its failure to pay the amount of the debt outstanding and due to the SRT Lender on the January 9, 2024 maturity date.
(2)As described in Note 3, “Summary of Significant Accounting Policies” on July 1, 2023, the Company adopted the liquidation basis of accounting which requires the Company to record notes payable at their contractual
v3.24.3
EQUITY
 9 Months Ended
Sep. 30, 2024
Stockholders' Equity Note [Abstract]  
EQUITY
8. EQUITY
Share Redemption Program
As the Company’s stockholders have approved the Plan of Liquidation, the board of directors expects any future liquidity to be in the form of liquidating distributions and does not expect to resume the SRP.
Distributions
In order to qualify as a REIT, the Company is required to distribute at least 90% of its annual REIT taxable income, subject to certain adjustments, to its stockholders. The Company’s board of directors regularly evaluates the amount and timing of distributions based on the Company’s operational cash needs. As the Company’s stockholders have approved the Plan of Liquidation, the Company’s board of directors expects any future distributions to be in the form of liquidating distributions and does not expect to consider regular distributions.
v3.24.3
RELATED PARTY TRANSACTIONS
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
9. RELATED PARTY TRANSACTIONS
On August 7, 2013, the Company entered into the Advisory Agreement with the Advisor, which has been renewed for successive terms with a current expiration date of August 9, 2025. The Advisor manages the Company’s business as the Company’s external advisor pursuant to the Advisory Agreement. Effective April 1, 2021, the Advisor was acquired by PUR SRT Advisors LLC (“PUR”), an affiliate of PUR Management LLC, which is an affiliate of L3 Capital. Our officers and affiliated director are officers and employees of L3 Capital. Pursuant to the Advisory Agreement, the Company pays the Advisor specified fees for services related to the investment of funds in real estate and real estate-related investments, management of the Company’s investments and for other services. On August 9, 2023, the parties entered the Eleventh Amendment to the Advisory Agreement (the “Eleventh Amendment”). The Eleventh Amendment renewed the term of the Advisory Agreement for an additional one-year period and again set the asset management fee at $250,000 in the aggregate for the twelve-month period commencing August 2023 through July 2024. The Advisory Agreement remained unchanged in all other respects. On August 8, 2024, the parties entered the Twelfth Amendment to the Advisory Agreement (the “Twelfth Amendment”). The Twelfth Amendment renewed the term of the Advisory Agreement for an additional one-year period and again set the asset management fee at $250,000 in the aggregate for the twelve-month period commencing August 2024 through July 2025. In addition, the Twelfth Amendment provides for the automatic termination of the Advisory Agreement upon payment of the final liquidating distribution to the stockholders. The Advisory Agreement remained unchanged in all other respects.
The Company is party to property management agreements with respect to each of its properties pursuant to which PUR was engaged to serve as property manager. The property management agreements were renewed on August 10, 2024 and will automatically renew every year, unless expressly terminated.
Summary of Related Party Fees
The following table sets forth the Advisor related-party costs incurred and payable by the Company for the periods presented (amounts in thousands):
IncurredPayable as of
Three Months Ended
September 30,		Nine Months Ended
September 30,		September 30,December 31,
Expensed2024202420242023
Asset management fees$63 $188 $42 $21 
Property management fees17 58 15 16 
Disposition fees220 220 — — 
Total$300 $466 $57 $37 
Asset Management Fees
Under the Eleventh Amendment and the Twelfth Amendment the asset management fee payable to the Advisor in each of the twelve-month periods commencing August 2023 through July 2024 and August 2024 through July 2025 is $250,000 in the aggregate.
Reimbursement of Operating Expenses
The Company reimburses the Advisor for all expenses paid or incurred by the Advisor in connection with the services provided to the Company, subject to the limitation that the Company will not reimburse the Advisor for any amount by which the Company’s total operating expenses (including the asset management fee described above) at the end of the four preceding fiscal quarters exceeded the greater of (1) 2% of its average invested assets (as defined in the Company’s Articles of Amendment and Restatement (the “Charter”)); or (2) 25% of its net income (as defined in the Charter) determined without reduction for any additions to depreciation, bad debts or other similar non-cash expenses and excluding any gain from the sale of the Company’s assets for that period (the “2%/25% Guideline”). The Advisor is required to reimburse the Company quarterly for any amounts by which total operating expenses exceed the 2%/25% Guideline in the previous expense year that the independent directors do not approve. The Company will not reimburse the Advisor for any of its personnel costs or other overhead costs except for customary reimbursements for personnel costs under property management agreements entered into between the OP and the Advisor or its affiliates. Notwithstanding the above, the Company may reimburse the Advisor for expenses in excess of the 2%/25% Guideline if a majority of the independent directors determine that such excess expenses are justified based on unusual and non-recurring factors.
Property Management Fees
Under the property management agreements the Company pays property management fees calculated at a maximum of up to 4% of the properties’ gross revenue.
Disposition Fees
Under the Advisory Agreement, if the Advisor or its affiliates provide a substantial amount of services, as determined by the Company’s independent directors, in connection with the sale of a real property, the Advisor or its affiliates may be paid disposition fees up to 50% of a customary and competitive real estate commission, but not to exceed 3% of the contract sales price of each property sold.
v3.24.3
COMMITMENTS AND CONTINGENCIES
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
10. COMMITMENTS AND CONTINGENCIES
Economic Dependency
The Company is dependent on the Advisor and its affiliates for certain services that are essential to the Company, including the negotiation and disposition of real estate in connection with the implementation of the Plan of Liquidation, continued management of the daily operations of the Company’s real estate and real estate-related investment portfolio, and other general and administrative responsibilities. In the event that the Advisor is unable to provide such services to the Company, the Company will be required to obtain such services from other sources.
Legal Matters
From time to time, the Company may become party to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material
adverse effect on the Company’s results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote.
Environmental
As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its condensed consolidated financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities.
v3.24.3
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
 9 Months Ended
Sep. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
11. SUBSEQUENT EVENTS
On November 13, 2024, the Company consummated the disposition of Topaz for $220 thousand in cash, before customary closing and transaction costs of $42 thousand, resulting in net cash proceeds of approximately $178 thousand.
v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Principles of Consolidation and Basis of Presentation
Principles of Consolidation and Basis of Presentation
The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”), including Subtopic 205-30, “Liquidation Basis of Accounting”, as indicated, and the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements.
Pursuant to the Company’s stockholders’ approval of the Plan of Liquidation, the Company adopted the liquidation basis of accounting as of and for the periods subsequent to July 1, 2023 (as the approval of the Plan of Liquidation by the Company’s stockholders became imminent during the month of July 2023 based on the results of the Company’s solicitation of proxies from its stockholders for their approval of the Plan of Liquidation). Accordingly, on July 1, 2023, assets were adjusted to their estimated net realizable value, or liquidation value, which represents the estimated amount of cash or other consideration that the Company expects to realize through the disposal of assets as it carries out the Plan of Liquidation. The liquidation values of
the Company’s remaining real estate properties are presented on a net realizable value basis. Liabilities are carried at their contractual amounts due or estimated settlement amounts.
The Company accrues costs and income that it expects to incur and earn through the completion of its liquidation, including the estimated amount of cash or other consideration that the Company expects to realize through the disposal of its assets and the estimated costs to dispose of its assets, to the extent it has a reasonable basis for estimation. These amounts are classified as a liability for estimated costs in excess of estimated receipts during liquidation on the Condensed Consolidated Statement of Net Assets. Actual costs and income may differ from amounts reflected in the financial statements because of the inherent uncertainty in estimating future events. These differences may be material. See Note 2, “Plan of Liquidation” and Note 4, “Liabilities for Estimated Costs in Excess of Estimated Receipts During Liquidation” for further discussion. Actual costs incurred but unpaid as of September 30, 2024 are included in accounts payable and accrued expenses, due to affiliates and other liabilities on the Condensed Consolidated Statement of Net Assets.
Net assets in liquidation represents the remaining estimated liquidation value available to stockholders upon liquidation. Due to the uncertainty in the timing of the sale or transfer of the Company’s remaining real estate properties and the estimated cash flows from operations, actual liquidation costs and sale proceeds may differ materially from the amounts estimated.
As a result of the change to the liquidation basis of accounting, the Company no longer presents a Consolidated Balance Sheet, a Consolidated Statement of Operations, a Consolidated Statement of Changes in Equity or a Consolidated Statement of Cash Flows.
The interim unaudited condensed consolidated financial statements include the accounts of the Company, the OP, their direct and indirect owned subsidiaries, and the accounts of joint ventures that are determined to be variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s condensed consolidated financial position, results of operations and cash flows have been included.
The Company evaluates the need to consolidate joint ventures and variable interest entities based on standards set forth in ASC Topic 810, Consolidation (“ASC 810”). In determining whether the Company has a controlling interest in a joint venture or a variable interest entity and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the partners/members, as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary.
Use of Estimates
Certain of the Company’s accounting estimates are particularly important for an understanding of the Company’s financial position and results of operations and require the application of significant judgment by management. As a result, these estimates are subject to a degree of uncertainty. The Company is required to estimate all costs and revenue it expects to incur and earn through the end of liquidation including the estimated amount of cash it expects to collect on the disposal of its assets and the estimated costs to dispose of its assets. All of the estimates and evaluations are susceptible to change and actual results could differ materially from the estimates and evaluations.
Real Estate - Liquidation Basis of Accounting
As of July 1, 2023, the Company’s investments in real estate were adjusted to their estimated net realizable value, or liquidation value, to reflect the change to the liquidation basis of accounting. The liquidation value represents the estimated amount of cash or other consideration the Company expects to realize through the disposal of its assets, including any residual value attributable to lease intangibles, as it carries out the Plan of Liquidation. The liquidation value of investments in real estate was based on offers the Company received for the sale of the properties, which the Company is marketing for sale. The liquidation values of the Company’s investments in real estate are presented on an undiscounted basis and investments in real estate are no longer depreciated. Subsequent to July 1, 2023, all changes in the estimated liquidation value of the investments in real estate are reflected as a change to the Company’s net assets in liquidation.
Rents and Other Receivables
In accordance with the liquidation basis of accounting, as of July 1, 2023, rents and other receivables were adjusted to their net realizable value. The Company periodically evaluates the collectibility of amounts due from tenants. Any changes in the collectibility of the receivables are reflected as a change to the Company’s net assets in liquidation.
Revenue Recognition - Liquidation Basis of Accounting
Under the liquidation basis of accounting, the Company has accrued all income that it expects to earn through the completion of its liquidation to the extent it has a reasonable basis for estimation. Revenue from tenants is estimated based on the contractual in-place leases and projected leases through the anticipated disposition date of the property. These amounts are presented net of estimated expenses and other liquidation costs and are classified in liabilities for estimated costs in excess of estimated receipts during liquidation on the Condensed Consolidated Statement of Net Assets.
Accrued Liquidation Costs
In accordance with the liquidation basis of accounting, the Company accrues for certain estimated liquidation costs to the extent it has a reasonable basis for estimation. These consist of legal fees, dissolution costs, final audit/tax costs, insurance, and transfer agent related costs.
Derivative Instruments and Hedging Activities
The Company measures derivative instruments at fair value and records them as assets or liabilities, depending on its rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in changes in net assets in liquidation on the condensed consolidated statement of changes in net assets. The ineffective portion of a derivative’s change in fair value is recognized in liabilities for estimated costs in excess of estimated receipts during liquidation on the Condensed Consolidated Statement of Net Assets.
The Company does not net its derivative fair values or any existing rights or obligations to cash collateral. The Company does not use derivatives for trading or speculative purposes. For the periods presented, the Company's derivative, comprised of an interest rate cap, qualified and was designated as a cash flow hedge, and was not deemed ineffective.
Cash, Cash Equivalents and Restricted Cash
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents represent current bank accounts and other bank deposits free of encumbrances and having maturity dates of three months or less from the respective dates of deposit. The Company limits cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk in cash.
Restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, debt service and leasing costs held by lenders.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the condensed consolidated balance sheets that sum to the total of the same such amounts shown on the condensed consolidated statement of net assets (amounts in thousands):
September 30, 2024December 31, 2023
Cash and cash equivalents$323 $1,250 
Restricted cash1,726 319 
Total cash, cash equivalents, and restricted cash$2,049 $1,569 
Recent Accounting Pronouncements
Recent Accounting Pronouncements
There are no new accounting pronouncements that are applicable or relevant to the Company under the liquidation basis of accounting.
v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended
Sep. 30, 2024
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Restricted Cash [Table Text Block]
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the condensed consolidated balance sheets that sum to the total of the same such amounts shown on the condensed consolidated statement of net assets (amounts in thousands):
September 30, 2024December 31, 2023
Cash and cash equivalents$323 $1,250 
Restricted cash1,726 319 
Total cash, cash equivalents, and restricted cash$2,049 $1,569 
v3.24.3
Other Liabilities (Tables)
 9 Months Ended
Sep. 30, 2024
Other Liabilities Disclosure [Abstract]  
Summary of Changes in Liquidation Accrual of Company
The change in the liabilities for estimated costs in excess of estimated receipts during liquidation as of September 30, 2024 is as follows (amounts in thousands):
December 31, 2023Cash Payments (Receipts)Remeasurement of Assets and LiabilitiesSeptember 30, 2024
Liabilities:
Estimated net outflows from investments in real estate$(443)$294 $(77)$(226)
Liquidation transaction costs(2,490)1,152 65 (1,273)
Corporate expenditures(1,785)632 89 (1,064)
(4,718)2,078 77 (2,563)
Total liabilities for estimated costs in excess of estimated receipts during liquidation$(4,718)$2,078 $77 $(2,563)
v3.24.3
NOTES PAYABLE, NET (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of maturities for notes payable outstanding
The following is a schedule of future principal payments for all of the Company’s notes payable outstanding as of September 30, 2024 (amounts in thousands): 
2024(1)
$8,152 
Total future principal payments8,152 
Notes payable (2)
$8,152 
(1)As discussed above, on January 18, 2024, the Company was notified of its maturity default on the SRT Loan following its failure to pay the amount of the debt outstanding and due to the SRT Lender on the January 9, 2024 maturity date.
(2)As described in Note 3, “Summary of Significant Accounting Policies” on July 1, 2023, the Company adopted the liquidation basis of accounting which requires the Company to record notes payable at their contractual
v3.24.3
RELATED PARTY TRANSACTIONS (Tables)
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions
The following table sets forth the Advisor related-party costs incurred and payable by the Company for the periods presented (amounts in thousands):
IncurredPayable as of
Three Months Ended
September 30,		Nine Months Ended
September 30,		September 30,December 31,
Expensed2024202420242023
Asset management fees$63 $188 $42 $21 
Property management fees17 58 15 16 
Disposition fees220 220 — — 
Total$300 $466 $57 $37 
v3.24.3
ORGANIZATION AND BUSINESS (Details Textual) - ft²
ft² in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Real Estate Properties [Line Items]    
Net Rentable Area 11  
Percent of Real Estate Properties Leased 100.00%  
Strategic Realty Trust [Member]    
Real Estate Properties [Line Items]    
Partnership Interest Ownership Percentage 98.10% 98.10%
v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]    
Cash and Cash Equivalents $ 323 $ 1,250
Restricted Cash 1,726 319
Cash, cash equivalents and restricted cash $ 2,049 $ 1,569
v3.24.3
Other Liabilities (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Other Liabilities Disclosure [Abstract]    
Liabilities for Estimated Costs in Excess of Estimated Receipts During Liquidation $ (2,563) $ (4,718)
Liquidation Basis of Accounting, Estimated Net Outflows from Investments in Real Estate (226) (443)
Liquidation Basis of Accounting, Liqudation transaction costs (1,273) (2,490)
Liquidation Basis of Accounting, Corporate Expenditures (1,064) (1,785)
Liquidation Basis of Accounting, Total Liabilities (2,563) $ (4,718)
Liquidation Basis of Accounting, Payments for investments in real estate 294  
Liquidation Basis of Accounting, Payments for liquidation costs 1,152  
Liquidation Basis of Accounting, Payments for corporate expenditures 632  
Liquidation Basis of Accounting, Payments for Liabilities 2,078  
Liquidation Basis of Accounting, Payments for (Proceeds) from Liquidation 2,078  
Liquidation Basis of Accounting, Remeasurement, Increase (Decrease) in Estimated Net Outflows from Investments in Real Estate (77)  
Liquidation Basis of Accounting, Remeasurement, Increase (Decrease) in Liquidation transaction costs 65  
Liquidation Basis of Accounting, Remeasurement, Increase (Decrease) in Corporate Expenditures 89  
Liquidation Basis of Accounting, Remeasurement, Increase (Decrease) in Liabilities 77  
Liquidation Basis of Accounting, Liquidation Plan $ 77  
v3.24.3
Equity (Details)
$ / shares in Units, $ in Thousands
 9 Months Ended
Sep. 30, 2024
USD ($)
$ / shares
Equity [Abstract]  
Common Stock, Additional Estimated Liquidation Distribution Per Share | $ / shares $ 0.38
Changes in net assets in liquidation $ (1,035)
Liquidation Basis of Accounting, Remeasurement, Gain (Loss) on Asset (1,112)
Change in estimated cash flow during liquidation 77
Liquidation Basis of Accounting, Remeasurement, Gain (Loss) on Items Previously Not Recognized 0
Changes in net assets in liquidation disclosure $ 1,000
v3.24.3
REAL ESTATE INVESTMENTS (Details)
ft² in Thousands, $ in Thousands
Sep. 30, 2024
USD ($)
ft²
Dec. 31, 2023
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Real Estate, Liquidation Value | $ $ 13,000 $ 26,260
Net Rentable Area | ft² 11  
Percent of Real Estate Properties Leased 100.00%  
v3.24.3
NOTES PAYABLE, NET NOTES PAYABLE, NET (Multi-Property Secured Financing) (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Debt Instrument [Line Items]    
Secured Debt $ 8,200  
Secured Debt [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Description of Variable Rate Basis 30-day SOFR  
Debt Instrument, Basis Spread on Variable Rate 2.80%  
Derivative, Notional Amount $ 18,000  
Payments of Derivative Issuance Costs   $ 260
Secured Debt [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Basis Spread on Variable Rate 1.50%  
Measurement Input, Default Rate [Member] | Secured Debt [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Basis Spread on Variable Rate 5.00%  
v3.24.3
NOTES PAYABLE, NET (Loans Secured by Properties Under Development) (Details) - Secured Debt [Member]
 9 Months Ended
Sep. 30, 2024
Short-term Debt [Line Items]  
Debt Instrument, Description of Variable Rate Basis 30-day SOFR
Debt Instrument, Basis Spread on Variable Rate 2.80%
Minimum [Member]  
Short-term Debt [Line Items]  
Debt Instrument, Basis Spread on Variable Rate 1.50%
v3.24.3
NOTES PAYABLE, NET (Future Principal Payments) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Schedule of maturities for notes payable outstanding    
Long-Term Debt, Maturity, Year One $ 8,152  
Total (1) 8,152  
Notes Payable, Fair Value Disclosure $ 8,152 $ 18,000
v3.24.3
NOTES PAYABLE, NET NOTES PAYABLE, NET (Interest Expense) (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Short-term Debt [Line Items]  
Interest Payable $ 1.1
Interest Payable, Current $ 0.7
v3.24.3
EQUITY EQUITY (Quarterly Distribution (Details)
 9 Months Ended
Sep. 30, 2024
Stockholders' Equity Note [Abstract]  
Minimum Percentage of Taxable Income Distributed to Shareholders 90.00%
v3.24.3
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2024
Dec. 31, 2023
Summarized below are the related-party transactions      
Amounts due to affiliates. $ 65 $ 65 $ 34
Expensed Asset management Fees [Member] | Advisor Fees [Member]      
Summarized below are the related-party transactions      
Related-party costs, Incurred 63 188  
Amounts due to affiliates. 42 42 21
Expensed Property Management Fees [Member] | Advisor Fees [Member]      
Summarized below are the related-party transactions      
Related-party costs, Incurred 17 58  
Amounts due to affiliates. 15 15 16
Expensed [Member] | Advisor Fees [Member]      
Summarized below are the related-party transactions      
Related-party costs, Incurred 300 466  
Amounts due to affiliates. $ 57 $ 57 $ 37
v3.24.3
RELATED PARTY TRANSACTIONS (Details) (Narrative) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2024
Advisor Fees [Member]    
Related Party Transaction [Line Items]    
Advisor or its affiliates also will be paid disposition fees of a customary and competitive real estate commission   50.00%
SRT Manager [Member]    
Related Party Transaction [Line Items]    
Property Management Fee, Percent Fee   4.00%
Expensed Disposition Fees [Member] | Advisor Fees [Member]    
Related Party Transaction [Line Items]    
Asset Management Fees $ 220 $ 220
Maximum [Member] | Advisor Fees [Member]    
Related Party Transaction [Line Items]    
Advisor or its affiliates also will be paid disposition fees of the contract price   3.00%