Fair Value Disclosures

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

Fair Value Disclosures

12. FAIR VALUE DISCLOSURES

The Partnership has determined the fair value based on hierarchy that gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. The three levels of the fair value hierarchy under the accounting principle are described below:

Level 1. Quoted prices in active markets for identical assets or liabilities.

Level 2. Quoted prices for similar investments in active markets, quoted prices for identical or similar investments in markets that are not active, and inputs other than quoted prices that are observable for the investment.

Level 3. Unobservable inputs for which there is little, if any, market activity for the investment. The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation and the use of discounted cash flow models to value the investment.

The fair value hierarchy is based on the lowest level of input that is significant to the fair value measurements. The Partnership's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.

The Partnership assesses the levels of the Investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Partnership's accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. For the years ended December 31, 2011 and 2010, there were no such transfers.

Fair Value on a Nonrecurring Basis- Vacant and formerly owned Denny's, Phoenix, AZ Properties

Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents the assets and liabilities carried on the balance sheet by caption and by level within the fair valuation hierarchy (as described above) as of December 31, 2011, for which a nonrecurring change in fair values were recorded during the fiscal year 2011 for the formerly owned Denny's, Phoenix, AZ property (sold on November 23, 2011) and the vacant Phoenix, AZ property.

									Incurred for the Year Ended			Incurred for the Year Ended
	Carrying Value at December 31, 2011								December 31, 2011			December 31, 2010
	Total		Level 1		Level 2		Level 3		Total Losses			Total Losses
Formerly owned Denny's, Phoenix, AZ property	$	—	$	—	$	—	$	—	$	(104,705	)	$	—
Vacant Phoenix, AZ Property		150,000		—		—		150,000		(390,117	)		—
Total properties	$	150,000	$	—	$	—	$	150,000	$	(494,822	)	$	0

Investment property measured at fair value on a nonrecurring basis relates to land, building and improvements that were held for investment or held for sale. Losses of $494,822 represent property impairment charges related to the vacant Phoenix, AZ property and the formerly owned Denny's, Phoenix, AZ property recorded during the fiscal year 2011. The fair value of these assets was determined by Management and incorporates Management's knowledge of comparable properties, past experience and future expectations.

There was no fair value adjustment in the fiscal year ended December 31, 2010. For the fiscal year ended December 31, 2009, total losses of $50,000 represent an impairment charge related to the Park Forest property recorded in 2009.