Investments in Joint Ventures

12 Months Ended

Dec. 31, 2011

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments Disclosure [Text Block]

5. Investment in Joint Ventures

At December 31, 2011 and 2010, the Company’s only joint venture investment was IATG. The carrying amount of the joint venture was $0 and $1,762,225, respectively. As part of the February 27, 2009 Settlement Agreement, the Company received a 50% ownership interest in IATG, the Lightstone affiliate that owns The Las Piedras Industrial Complex, an industrial property located in Las Piedras, Puerto Rico consisting of approximately 68 acres of land and 380,800 square feet of rentable space contained in several buildings in the complex. At December 31, 2011, the occupancy rate at the property was approximately 16%. The property is managed by a Lightstone affiliate and Lightstone agreed to advance funds to pay any negative cash flow from the operations of the property until a sale could be accomplished and has agreed that if it does not do so, on demand by the Company, it will transfer its remaining 49% interest in the property to Presidential.

The Company accounted for its investment in the IATG joint venture using the equity method. During the years ended December 31, 2011 and 2010, the Company’s 50% share of the loss of IATG was $991,106 and $833,378, respectively. On December 22, 2011 an action entitled Centro De Recaudacion de Ingresos Municipals against IATG Puerto Rico, LLC was filed in Estado Libre Asociado de Puerto Rico, Tribunal de Primera Instancia, Sala Superior de Hunacao in respect of approximately $7.7 million of unpaid interest, taxes and penalties owed by IATG Puerto Rico, LLC, the owner of Las Piedras Industrial Park in Las Piedras, Puerto Rico. The Company believes the value of the property is less than the amount of taxes owed. The Company recorded an impairment loss of $771,119 which reduced the carrying amount of this investment to zero. The Company does not expect any liability for these obligations beyond the loss of our investment.

Activity in investments in joint ventures for the year ended December 31, 2011 and 2010 is as follows:

	Balance, December 31, 2010		Equity in the Loss from Joint Ventures			Impairment Charge			Balance, December 31, 2011
IATG (1)	$	1,762,225	$	(991,106	)	$	(771,119	)	$	-
		-		-						-
	$	1,762,225	$	(991,106	)	$	(771,119	)	$	-

The summary financial information for IATG is as follows:

	December 31,
	2011			2010
Condensed balance sheet
Net real estate	$	5,156,600		$	5,330,000
Cash and cash equivalents		29,000			27,000
Acounts receivable		36,000			57,000
Deferred expenses		4,400			176,000
Prepaid expenses		84,000			81,000
	$	5,310,000		$	5,671,000
Note payable (1)	$	10,124,000		$	8,878,000
Other liabilities		3,269,000			2,894,000
Total liabilities		13,393,000			11,772,000
Members' deficit		(8,083,000	)		(6,101,000	)
Total liabilities and members' deficit	$	5,310,000		$	5,671,000

(1) The note payable is payable to an affiliate of Lightstone and payment thereof is subordinate to the Company’s right to receive its share of any proceeds of a sale or refinancing.

	Year Ended
	December 31,
	2011			2010
Condensed statement of operations
Revenues	$	975,000		$	947,000
Interest on notes payable		(1,127,000	)		(987,000	)
Other expenses		(1,480,000	)		(1,419,000	)
Loss before depreciation and amortization		(1,632,000	)		(1,459,000	)
Depreciation and Amortization		(350,000	)		(208,000	)
Net Loss	$	(1,982,000	)	$	(1,667,000	)