Investment Properties and Properties Held for Sale

6 Months Ended

Jun. 30, 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 of the Partnership.

As of June 30, 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. The eleven Properties are located in a total of four states.

Discontinued Operations

During the three-month periods ended June 30, 2017 and 2016, the Partnership recognized (loss) or income from discontinued operations of $(4,068) and $15,105, respectively. The income from discontinued operations for the three months ended June 30, 2016 was attributable to the Martinez, GA Property, which was leased during the quarter ended June 30, 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 June 30, 2017 and December 31, 2016 are outlined below:

	June 30, 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 condensed statement of income (loss) for the three and six month periods ended June 30, 2017 and 2016 are outlined below:

	Three Months Ended					Six Months Ended
	June 30,			June 30,		June 30,			June 30,
	2017			2016		2017			2016
Revenues
Base Rent	$	-		$	21,029	$	-		$	42,060
Total Revenues	$	-		$	21,029	$	-		$	42,060
Expenses
Insurance	$	518		$	-	$	1,036		$	-
Property tax expense		1,500			-		3,000			-
Maintenance expense		2,050			-		3,503			-
Property Appraisal					2,500					2,500
Depreciation		-			2,803		-			5,607
Amortization		-			621		-			1,242
Total Expenses	$	4,068		$	5,924	$	7,539		$	9,349
Net (Loss) Income from Discontinued Operations	$	(4,068	)	$	15,105	$	(7,539	)	$	32,711