Investment Properties and Properties Held for Sale

3 Months Ended

Mar. 31, 2017

Real Estate [Abstract]

Investment Properties and Properties Held for Sale

2. INVESTMENT PROPERTIES AND PROPERTIES 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 March 31, 2017, the Partnership owned eleven Properties that contained fully constructed fast-food/casual dining restaurant restaurants. The following are operated by tenants at the Properties: eight separate Wendy’s restaurants, an Applebee’s restaurant, and a KFC restaurant. Following the expiration of the lease for the Martinez, GA Property on November 6, 2016, the Property is vacant. The eleven Properties are located in a total of four states.

Discontinued Operations

During the three month periods ended March 31, 2017 and 2016, the Partnership recognized (loss) or income from discontinued operations of $(3,471) and $17,606, respectively. The income from discontinued operations for the three months ended March 31, 2016 was attributable to the Martinez, GA Property, which was leased during the quarter ended March 31, 2016. During the fourth quarter of 2016 the lease for the Martinez, GA Property was terminated, and as of December 15, 2016 the Property was held for sale.

The components of property held for sale in the balance sheets as of March 31, 2017 and December 31, 2016 are outlined below:

	March 31 2017		December 31, 2016
Balance Sheet:
Land	$	266,175	$	266,175
Buildings, net		50,976		50,976
Properties held for sale	$	317,151	$	317,151

The components of discontinued operations included in the statements of income for the three months ended March 31, 2017 and 2016 are outlined below:

	March 31 2017			December 31, 2016
Revenues
Base Rent	$	-		$	21,031
Total Revenues	$	-		$	21,031
Expenses
Insurance	$	518		$	-
Property tax expense		1,500			-
Maintenance expense		1,453			-
Depreciation		-			2,804
Amortization		-			621
Total Expenses	$	3,471		$	3,425
Net (Loss) Income from Discontinued Operations	$	(3,471	)	$	17,606