Investment Properties and Property Held for Sale

12 Months Ended

Dec. 31, 2014

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 of the Partnership.

As of December 31, 2014, the Partnership owned eleven Properties that contained fully constructed fast-food/casual dining restaurant facilities. The eleven tenants are composed of the following: nine Wendy’s restaurants, an Applebee’s restaurant, and a KFC restaurant. The eleven Properties are located in a total of four states.

A summary of significant developments as of December 31, 2014, by property, for properties with such developments, can be found in Item 2, Properties.

Discontinued Operations

During the fiscal years ended December 31, 2014, 2013 and 2012, the Partnership recognized income from discontinued operations of $208,411, $43,147 and $153,513, respectively. The 2014 and 2013 income from discontinued operations was attributable to the sale of the vacant Des Moines, IA property in 2014. The 2012 income from discontinued operations was attributable to the third quarter of 2012 impairment adjustments of $142,747 due to the sale of the vacant Phoenix, AZ property.

The components of discontinued operations included in the statements of income for the years ended December 31, 2014, 2013 and 2012 are outlined below:

	December 31,			December 31,		December 31,
	2014			2013		2012
Revenues
Rental Income	$	27,750		$	59,679	$	60,804
Other Income		0			0		2,500
Total Revenues	$	27,750		$	59,679	$	63,304
Expenses
Insurance		328			0		2,555
Bad Debt Expense		25,482			0		0
Professional services		0			0		2,060
Property tax expense		12,770			0		12,546
Maintenance expense		306			0		15,745
Property impairment write-up		0			0		(142,747	)
Depreciation		7,653			14,750		14,750
Amortization		743			1,782		1,782
Other expenses		0			0		3,100
Total Expenses (Income)	$	47,282		$	16,532	$	(90,209	)
Net (Loss) Income from Rental Operations	$	(19,532	)	$	43,147	$	153,513
Net Gain on Sale of Properties		227,943			0		0
Net Income from Discontinued Operations	$	208,411		$	43,147	$	153,513