Commitments and Contingencies Economic Dependency The Company is dependent on the Advisor and the Dealer Manager for certain services that are essential to the Company, including the sale of the Company?s shares of common stock and preferred stock available for issue; the identification, evaluation, negotiation, purchase and disposition of properties?, management of the daily operations of the Company?s real estate portfolio, and other general and administrative responsibilities. In the event that these companies are unable to provide the respective services, the Company will be required to obtain such services from other providers. Litigation The Company is subject to various claims and legal actions that arise in the ordinary course of business. Management of the Company believes that the final disposition of such matters will not have a material adverse effect on the financial position of the Company. Richardson Heights ? Alamo Draft House Lease On September 26, 2012, the Company, through its wholly owned subsidiary, Hartman Richardson Heights Properties LLC (?HRHP LLC?), entered in to a lease agreement with the exclusive Alamo Draft House franchisee for the Dallas/Fort Worth area. Alamo Draft House is a specialized movie theatre concept which combines showings of new release and classic films with dining and other entertainment. The lease agreement has a 15 year term and a total lease value of $9.45 million. The building and tenant improvement cost for the Alamo Draft House lease is estimated to be approximately $4.8 million. The City of Richardson, Texas and HRHP LLC have entered into an economic development incentive agreement. Under the terms of the incentive agreement, the City of Richardson will provide annual grants to be paid to HRHP LLC in equal installments over a five year period of up to $1.5 million and sales tax grants to be paid annually over the first 10 years of the tenant lease. Funding for the improvement work will be provided by equity capital together with funds as needed under the Company