Accounts Payable, Accrued Expenses and Other Liabilities

9 Months Ended

Sep. 30, 2019

Payables And Accruals [Abstract]

Accounts Payable, Accrued Expenses and Other Liabilities

13. Accounts Payable, Accrued Expenses and Other Liabilities

The following table summarizes the accounts payable, accrued expenses and other liabilities as of September 30, 2019 and December 31, 2018:

	September 30, 2019		December 31, 2018
Accounts payable	$	182,099	$	230,631
Accrued expenses		3,023,629		2,956,368
Accrued interest expense		2,572,279		2,270,348
Operating lease liabilities		2,137,792		-
Other liabilities		1,677,151		2,086,475
Total accounts payable, accrued expenses and other liabilities	$	9,592,950	$	7,543,822

See Note 2 for discussion of the adoption of ASC 842 effective January 1, 2019.

The 50/50 MF Property has a ground lease with the University of Nebraska-Lincoln with an initial lease term expiring in March 2038. The Partnership has an option to extend the lease for an additional five-year period, which has not been factored into the calculation of the ROU asset and lease liability.  Annual lease payments are $100 per year. The Partnership is also required to make monthly payments, when cash is available at The 50/50 MF Property, to the University of Nebraska-Lincoln. Payment amounts are based on The 50/50 MF Property’s revenues, subject to an annual guaranteed minimum amount.  As of September 30, 2019, the minimum aggregate annual payment due under the agreement is approximately $132,000. The minimum aggregate annual payment increases 2% annually until July 31, 2034 and increases 3% annually thereafter.  The 50/50 MF Property will be required to make additional payments under the agreement if its gross revenues exceed certain thresholds.  The Partnership recognized expenses related to the ground lease of approximately $42,000 and $126,000 for the three and nine months ended September 30, 2019 and 2018 and are included within real estate operating expenses on the Partnership’s condensed consolidated statements of operations.  

The following table summarizes future contractual payments for the Partnership’s operating leases and a reconciliation to the carrying value of operating lease liabilities:

Remainder of 2019	$	34,165
2020		135,812
2021		136,366
2022		139,091
2023		141,871
Thereafter		4,661,979
Total		5,249,284
Less:  Amount representing interest		(3,111,492	)
Total operating lease liabilities	$	2,137,792