INVESTMENT PROPERTIES and PROPERTY HELD FOR SALE

12 Months Ended

Dec. 31, 2013

Real Estate [Abstract]

INVESTMENT PROPERTIES and PROPERTY HELD FOR SALE

3. INVESTMENT PROPERTIES and PROPERTY HELD FOR SALE:

The total cost of the Properties includes the original purchase price plus acquisition fees and other capitalized costs paid to an affiliate of the former general partners.

As of December 31, 2013, the Partnership owned twelve fully constructed fast-food restaurant facilities. The twelve tenants are composed of the following: nine Wendy’s restaurants, an Applebee’s restaurant, a KFC restaurant, and a Daytona’s All Sports Café. The twelve properties are located in a total of five states.

A summary of significant developments as of December 31, 2013, by property, for properties with such developments, can be found in Item 2, Properties.

Discontinued Operations

During the fiscal years ended December 31, 2012 and 2011, the Partnership recognized income (loss) from discontinued operations of $109,241, and $(478,490), respectively. There were no discontinued operations in 2013. The 2012 and 2011 income (loss) from discontinued operations was attributable to the third quarter of 2011 reclassifications of the vacant Phoenix, AZ property and the Denny’s, Phoenix, AZ property to properties held for sale upon the execution of Agency and Marketing Agreement with an unaffiliated party in September of 2011 to sell both of the properties. The 2012 income from discontinued operations includes the fiscal year 2012 property impairment write up of $142,747 related to the sale of the Vacant Phoenix, AZ property. The 2011 loss from discontinued operations includes the fiscal year 2011 property impairment write downs of $390,117 related to the vacant Phoenix, AZ property and $104,705 related to the Denny’s, Phoenix, AZ property, and the 2011 loss of approximately $1,000 on the fourth quarter of 2011 sale of the Denny’s, Phoenix, AZ property.

The components of property held for sale in the balance sheets as of December 31, 2013 and 2012 are outlined below:

	December 31,		December 31,
	2013		2012
Balance Sheet:
Land	$	0	$	33,991

The components of discontinued operations included in the statements of income for the years ended December 31, 2013, 2012 and 2011 are outlined below:

	December 31,		December 31,			December 31,
	2013		2012			2011
Revenues
Rental Income	$	0	$	0		$	70,417
Other Income		0		2,500			1,204
Total Revenues		0		2,500			71,621
Expenses
Insurance		0		2,555			1,183
General and Administrative		0		0			659
Professional services		0		2,060			3,632
Property tax expense		0		12,546			9,985
Maintenance expense		0		15,745			10,012
Property impairment write-(up) down		0		(142,747	)		494,822
Depreciation		0		0			14,361
Amortization		0		0			10,380
Other expenses		0		3,100			3,850
Total (Income) Expenses		0		(106,741	)		548,884
Net (Income) Loss from Rental Operations	$	0	($	109,241	)	$	477,263
Net (Loss) Gain on Sale of Properties		0		0			(1,227	)
Net Income (Loss) from Discontinued Operations	$	0	$	109,241		($	478,490	)