Investment Properties and Properties Held for Sale

3 Months Ended

Mar. 31, 2018

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 March 31, 2018, 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 its lease expiration on November 6, 2016, the Martinez, GA Property is vacant. The eleven Properties are located in a total of four states.

Discontinued Operations

During the three month periods ended March 31, 2018 and 2017, the Partnership recognized a loss from discontinued operations of $(3,569) and $(3,471), respectively. The loss from discontinued operations was attributable to the Martinez, GA Property, which has been vacant since the fourth quarter of 2016. As of December 15, 2016, the Martinez, GA Property was deemed to be held for sale.

The components of property held for sale in the balance sheets as of March 31, 2018 and December 31, 2017 are outlined below:

	March 31, 2018		December 31,2017
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, 2018 and 2017 are outlined below:

	March 31, 2018			March 31, 2017
Revenues
Base Rent	$	-		$	-
Total Revenues	$	-		$	-
Expenses
Insurance	$	798		$	518
Property tax expense		1,545			1,500
Maintenance expense		1,226			1,453
Total Expenses	$	3,569		$	3,471
Net Loss from Discontinued Operations	$	(3,569	)	$	(3,471	)