TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES

5. TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES:

Pursuant to the terms of the Permanent Manager Agreement (“PMA”) executed in 1993 and renewed for an additional two-year term as of January 1, 2023, the General Partner receives a base fee (the “Base Fee”) for managing the Partnership equal to four percent of gross receipts, subject initially to a minimum annual Base Fee. The PMA also provides that the Partnership is responsible for reimbursement of the General Partner for office rent and related office overhead (“Expenses”) up to an initial annual maximum of $13,250. Both the Base Fee and Expenses reimbursement are subject to annual Consumer Price Index based adjustments. Effective March 1, 2021, Management has elected to roll back the last five years of CPI increases to their 2016 level and suspend any future CPI adjustments for the base fee. Therefore, the minimum Base Fee is $272,316 annually. The maximum annual Expenses reimbursement remains at $23,256 and any potential future CPI adjustments have been suspended.

For purposes of computing the four percent overall fee paid to the General Partner, gross receipts include amounts recovered in connection with the misappropriation of assets by the former general partners and their affiliates. The fee received by the General Partner from the Partnership on any amounts recovered reduce the four percent minimum fee by that same amount.

Amounts paid and/or accrued to the General Partner and its affiliates for the three-month periods ended March 31, 2023 and 2022 are as follows:

	Incurred for the		Incurred for the
	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
	(unaudited)		(unaudited)
General Partner
Management fees	$	68,079	$	68,079
Overhead allowance		5,814		5,814
Leasing commissions		-		-
Reimbursement for out-of-pocket expenses		2,500		2,500
Cash distribution		5,111		949
	$	81,504	$	77,342

At March 31, 2023 and December 31, 2022, $7,201 and $2,090, respectively, was payable to the General Partner.

DIVALL INSURED INCOME PROPERTIES 2 LIMITED PARTNERSHIP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

As of March 31, 2023, Jesse Small, an Advisory Board Member, beneficially owned greater than ten percent of the Partnership’s outstanding limited partnership interests. Amounts paid to Mr. Small for his services as a member of the Advisory Board for the three month periods ended March 31, 2023 and 2022 are as follows:

	Incurred for the Three Month Period ended March 31, 2023		Incurred for the Three Month Period ended March 31, 2022
	(Unaudited)		(Unaudited)
Advisory Board Fees paid	$	875	$	875

At March 31, 2023 and December 31, 2022 there were no outstanding Advisory Board fees accrued and payable to Jesse Small.