Real Estate Investments

12 Months Ended

Dec. 31, 2014

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

(4) Real Estate Investments –

The Partnership leases its properties to tenants under net leases, classified as operating leases. Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property. For some leases, the Partnership is responsible for repairs to the structural components of the building, the roof, and the parking lot. At the time the properties were acquired, the remaining primary lease terms varied from 10 to 20 years, except for the Tractor Supply Company store in Canton, Georgia, which had a remaining primary term of 7.3 years. The leases provide the tenants with two to four five-year renewal options subject to the same terms and conditions as the primary term.

The Partnership's properties are commercial, single-tenant buildings. The KinderCare daycare center in Andover, Minnesota was constructed in 1998 and acquired in 2002. The Jared Jewelry store in Hanover, Maryland was constructed in 2001 and acquired in 2004. The Jared Jewelry store in Auburn Hills, Michigan was constructed in 1999 and acquired in 2005. The Best Buy store was constructed in 1990, renovated in 1997 and acquired in 2008. The Fresenius Medical Center was constructed and acquired in 2008. The Tractor Supply Company store in Canton, Georgia was constructed in 2006 and acquired in 2014. The Gander Mountain store was constructed in 1994 and renovated and acquired in 2014. There have been no costs capitalized as improvements subsequent to the acquisitions.

The cost of the properties not held for sale and related accumulated depreciation at December 31, 2014 are as follows:

Property	Land		Buildings		Total		Accumulated Depreciation
KinderCare, Andover, MN	$	179,755	$	1,084,452	$	1,264,207	$	544,032
Jared Jewelry, Hanover, MD		861,065		1,128,070		1,989,135		490,712
Jared Jewelry, Auburn Hills, MI		280,993		1,185,055		1,466,048		472,045
Best Buy, Eau Claire, WI		853,357		2,784,349		3,637,706		770,337
Fresenius Medical Center, Shreveport, LA		102,046		1,258,571		1,360,617		314,644
Tractor Supply, Canton, GA		700,000		1,407,183		2,107,183		32,834
Gander Mountain, Champaign, IL		507,000		1,279,291		1,786,291		25,586
	$	3,484,216	$	10,126,971	$	13,611,187	$	2,650,190

For the years ended December 31, 2014 and 2013, the Partnership recognized depreciation expense from continuing operations of $392,540 and $352,371, respectively.

On May 29, 2014, the Partnership purchased a 50% interest in a Tractor Supply Company store in Canton, Georgia for $2,212,500. The Partnership allocated $185,920 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles and allocated $80,603 to Acquired Below-Market Lease Intangibles. The Partnership incurred $27,970 of acquisition expenses related to the purchase that were expensed. The property is leased to Tractor Supply Company under a Lease Agreement with a remaining primary term of 7.3 years (as of the date of purchase) and annual rent of $164,355 for the interest purchased.

On July 3, 2014, the Partnership purchased a 30% interest in a Gander Mountain store in Champaign, Illinois for $2,122,500. The Partnership allocated $336,209 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles. The Partnership incurred $34,052 of acquisition expenses related to the purchase that were expensed. The property is leased to Gander Mountain Company under a Lease Agreement with a remaining primary term of 14.9 years and annual rent of $167,772 for the interest purchased.

The following schedule presents the cost and related accumulated amortization of acquired lease intangibles not held for sale at December 31:

		2014				2013
		Cost		Accumulated Amortization		Cost		Accumulated Amortization
Acquired Intangible Lease Assets  (in-place lease intangibles with a weighted average  life of 140 and 0 months, respectively)	$	522,129	$	24,233	$	0	$	0
Acquired Below-Market Lease Intangibles  (weighted average life of 81 and 0 months, respectively)	$	80,603	$	6,412	$	0	$	0

For the years ended December 31, 2014 and 2013, the value of in-place lease intangibles amortized to expense was $24,233 and $0 and the increase to rental income for below-market leases was $6,412 and $0, respectively. For lease intangibles not held for sale at December 31, 2014, the estimated amortization expense is $48,019 and the estimated increase to rental income is $10,991 for each of the next five succeeding years.

For properties owned as of December 31, 2014, the minimum future rent payments required by the leases are as follows:

2015	$	1,168,601
2016		1,176,574
2017		1,122,637
2018		738,456
2019		671,739
Thereafter		2,398,932
	$	7,276,939

There were no contingent rents recognized in 2014 and 2013.