Investment Properties and Properties Held for Sale

3 Months Ended

Mar. 31, 2019

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, 2019, the Partnership owned 10 Properties, nine of which contained fully constructed fast-food/casual dining restaurant facilities. The following are operated by tenants at the aforementioned nine Properties: eight separate Wendy’s restaurants, and an Applebee’s restaurant. The tenant for the Property operated as an Applebee’s restaurant has been in Chapter 11 bankruptcy since May 2018 and, in January 2019, this tenant filed with the court to continue with the Partnership’s lease without modification. As of September 30, 2018, the Martinez, GA Property was leased by Brakes4Less of Columbia, Inc. Per the terms of the First Amendment to the Brakes4Less lease dated January 15, 2019, the first 12 months’ rent was abated. The 10 Properties are located in a total of three states.

Discontinued Operations

During the three month periods ended March 31, 2019 and 2018, the Partnership recognized a loss from discontinued operations of $0 and $(3,569), respectively. The loss from discontinued operations was attributable to the Martinez, GA Property, which had been vacant since the fourth quarter of 2016. As of September 30, 2018, as described above, the Martinez, GA Property was leased to Brakes4Less of Columbia, Inc.

The components of discontinued operations included in the statements of income for the three months ended March 31, 2019 and 2018 are outlined below:

	March 31, 2019		March 31, 2018
Revenues
Base Rent	$	-	$	-
Total Revenues	$	-	$	-
Expenses
Insurance		-		798
Property tax expense		-		1,545
Maintenance expense		-		1,226
Total Expenses		-		3,569
Net Loss from Discontinued Operations	$	-	$	(3,569	)