Investments in Joint Ventures

9 Months Ended

Sep. 30, 2012

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments Disclosure [Text Block]

3. Investments in Joint Ventures

At September 30, 2012 and December 31, 2011, the Company’s only joint venture investment was IATG. The carrying amount of the joint venture was $0. 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. Lightstone has advised the Company that it will no longer advance funds for the operations of the property.

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. We believe the value of the property is less than the amount of taxes owed. We own a 50% interest in the defendant. At December 31, 2011 the Company wrote down its investment of $771,110 in the property to zero. The Company has evaluated its potential liabilities and believes it has no liabilities in respect of IATG other than the complete loss of its investment in IATG Puerto Rico, LLC, which was reflected in the Company’s balance sheet at December 31, 2011 (see Note 8A3).

The summary financial information for IATG is as follows:

	December 31,
	2011
Condensed balance sheet
Net real estate	$	5,156,600
Cash and cash equivalents		29,000
Accounts receivable		36,000
Deferred expenses		4,400
Prepaid expenses		84,000
	$	5,310,000
Note payable (1)	$	10,124,000
Other liabilities		3,269,000
Total liabilities		13,393,000
Members' deficit		(8,083,000	)
Total liabilities and members' deficit	$	5,310,000

(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,			Nine Months Ended September 30,			Three Months Ended September 30,
	2011			2011			2011
Condensed statements of operations
Revenues	$	975,000		$	765,900		$	209,979
Interest on notes payable		(1,127,000	)		(831,736	)		(285,563	)
Other expenses		(1,480,000	)		(1,129,674	)		(355,310	)
Loss before depreciation and amortization		(1,632,000	)		(1,195,510	)		(430,894	)
Depreciation and amortization		(350,000	)		(301,571	)		(25,115	)
Net loss	$	(1,982,000	)	$	(1,497,081	)	$	(456,009	)