Leases

3 Months Ended

Mar. 31, 2016

Leases [Abstract]

Leases

5. LEASES:

Original lease terms for the Properties are generally five to twenty years from their inception. The leases generally provide for minimum rents and additional rents based upon percentages of gross sales in excess of specified breakpoints. The lessee is responsible for occupancy costs such as maintenance, insurance, real estate taxes, and utilities. Accordingly, these amounts are not reflected in the statements of income except in circumstances where, in management’s opinion, the Partnership will be required to pay such costs to preserve its assets (i.e., payment of past-due real estate taxes). Management has determined that the leases are properly classified as operating leases; therefore, rental income is reported when earned on a straight-line basis and the cost of the property, excluding the cost of the land, is depreciated over its estimated useful life.

As of March 31, 2016, the aggregate minimum operating lease payments (including the aggregate total of the first quarter of 2016 collected revenues of $243,427) to be received under the current operating leases for the Properties are as follows:

Year ending December 31,
2016	$	914,607
2017		720,433
2018		690,433
2019		660,433
2020		660,433
Thereafter		947,983
	$	4,594,322

At March 31, 2016 and December 31, 2015, rents and other receivables included $0 and $549,289, respectively, of unbilled percentage rents. As of March 31, 2016, all of the 2015 percentage rents had been billed and collected.