Investment Properties and Properties Held for Sale

6 Months Ended

Jun. 30, 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 June 30, 2018, the Partnership owned ten 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 and an Applebee’s restaurant. The ten Properties are located in a total of three states.

Discontinued Operations

During the three-month periods ended June 30, 2018 and 2017, the Partnership recognized a loss from discontinued operations of $(3,630) and $(4,068), 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. However, as of June 17, 2018, the Martinez, GA Property was no longer deemed held for sale because the Partnership has been taking steps to negotiate a lease with a prospective tenant.

The components of property held for sale in the balance sheets as of June 30, 2018 and December 31, 2017 are outlined below:

	June 30,		December 31,
	2018		2017
Balance Sheet:
Land	$	-	$	266,175
Buildings, net		-		50,976
Properties held for sale	$	-	$	317,151

The components of discontinued operations included in the condensed statement of income for the three and six month periods ended June 30, 2018 and 2017 are outlined below:

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2018			2017			2018			2017
Revenues
Base Rent	$	-		$	-		$	-		$	-
Total Revenues	$	-		$	-		$	-		$	-
Expenses
Insurance	$	638		$	518		$	1,440		$	1,036
Property tax expense		1,324			1,500			2,885			3,000
Maintenance expense		1,668			2,050			2,961			3,503
Total Expenses	$	3,630		$	4,068		$	7,286		$	7,539
Net Loss from Discontinued Operations	$	(3,630	)	$	(4,068	)	$	(7,286	)	$	(7,539	)