(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 18 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 leases for the Best Buy store and Jared Jewelry store in Auburn Hills were extended to end on January 19, 2023 and December 31, 2024, respectively.

The Partnership's properties are commercial, single-tenant buildings. 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 Gander Mountain store was constructed in 1994 and renovated and acquired in 2014. The Dollar Tree store was constructed in 2015 and acquired in 2016. 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, 2020 are as follows:


Property	Land		Buildings		Total		Accumulated Depreciation

Jared Jewelry, Hanover, MD	$	861,065	$	1,128,070	$	1,989,135	$	761,455
Jared Jewelry, Auburn Hills, MI		280,993		1,185,055		1,466,048		756,447
Best Buy, Eau Claire, WI		853,357		2,784,349		3,637,706		1,438,571
Gander Mountain, Champaign, IL		507,000		1,279,291		1,786,291		332,618
Dollar Tree, Cincinnati, OH		355,000		1,250,270		1,605,270		245,891
	$	2,857,415	$	7,627,035	$	10,484,450	$	3,534,982

For the years ended December 31, 2020 and 2019, the Partnership recognized depreciation expense of $346,345 and $402,316, respectively.

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


		2020				2019
		Cost		Accumulated Amortization		Cost		Accumulated Amortization
Acquired Intangible Lease Assets (in-place lease intangibles with a weighted average life of 37 and 33 months, respectively)	$	684,701	$	475,139	$	621,258	$	446,395

Acquired Below-Market Lease Intangibles (weighted average life of 61 and 73 months, respectively)	$	80,404	$	39,189	$	80,404	$	31,081

For the years ended December 31, 2020 and 2019, the value of in-place lease intangibles amortized to expense was $28,744 and $47,758, and the increase to rental income for below-market leases was $8,108 and $16,352, respectively. For lease intangibles not held for sale as of December 31, 2020, the estimated amortization expense is $32,455 for the year ended December 31, 2021 and $35,088 for each of the next four succeeding years, and the estimated increase to rental income for below-market leases is $8,108 for each of the next five succeeding years.

The Partnership owns a 30% interest in the Gander Mountain store in Champaign, Illinois. The remaining interests in the property are owned by affiliates of the Partnership. On March 10, 2017, Gander Mountain Company filed for Chapter 11 reorganization and announced it was closing the store, following a liquidation sale of its onsite assets. In June 2017, the tenant filed a motion with the bankruptcy court to reject the lease for this store effective June 30, 2017. At this time, the tenant returned possession of the property to the owners and the Partnership became responsible for its 30% share of real estate taxes and other costs associated with maintaining the property. The tenant paid rent through June 2017. The owners have listed the property for lease with a real estate broker in the Champaign area.

On August 11, 2020, the Partnership entered into a lease agreement with a primary term of 10 years with Burlington Coat Factory of Texas, Inc. (“Burlington”) as a replacement tenant for 62% of the square footage of the property. The tenant’s obligations under the lease are guaranteed by Burlington Coat Factory Warehouse Corporation. The tenant will operate a Burlington retail store in the space. The Partnership’s 30% share of annual rent is $102,980 and is expected to commence on June 1, 2021. The Partnership is responsible for paying its 30% share of the buildout of the space, which is expected to be approximately $660,000. The Partnership paid its 30% share of lease commissions due to real estate brokers totaling $63,443 that were owed as part of the lease transaction. This amount was capitalized and will be amortized over the term of the lease.

On February 5, 2021, the Partnership entered into a lease agreement with a primary term of 10 years with Five Below, Inc. as a replacement tenant for the 38% of the square footage of the property. The tenant will operate a Five Below retail store in the space. The Partnerships 30% share of the annual rent is $62,093 and is expected to commence on December 1, 2021. The Partnership is responsible for its 30% share of the buildout of the space, which is expected to be $272,000. In addition, the Partnership will pay its 30% share of lease commissions due to real estate brokers totaling $40,804 that will be due as part of the lease transaction. This amount will be capitalized and amortized over the term of the lease.

In March 2019, the Partnership entered into an agreement with the tenant of the Jared Jewelry store in Auburn Hills, Michigan to extend the lease term five years to end on December 31, 2024. As part of the agreement, the annual rent decreased from $124,049 to $105,560 effective January 1, 2020.

In September 2019, the Partnership entered into an agreement with the tenant of the Tractor Supply Company store in Canton, Georgia to extend the lease term ten years to end on September 30, 2034. The annual rent remained the same with a 3.0% increase scheduled to occur after five years. As part of the agreement, the Partnership paid a tenant improvement allowance of $90,000 that was capitalized.

In September 2019, the Partnership entered into an agreement to sell its 50% interest in the Tractor Supply Company store to an unrelated third party. On October 23, 2019, the sale closed with the Partnership receiving net proceeds of $2,730,563, which resulted in a net gain of $804,853. At the time of sale, the cost and related accumulated depreciation and amortization was $2,302,500 and $376,790, respectively.

In October 2020, the Partnership entered into an agreement to sell its 55% interest in the Fresenius Medical Center in Shreveport, Louisiana to an unrelated third party. On December 18, 2020, the sale closed with the Partnership receiving net proceeds of $1,465,286, which resulted in a net gain of $677,237. At the time of sale, the cost and related accumulated depreciation was $1,407,367 and $619,318, respectively.

For properties owned as of December 31, 2020, the minimum future rent payments required by the leases are as follows:

2021	$	780,497
2022		631,645
2023		345,125
2024		330,709
2025		225,149
Thereafter		595,574
	$	2,908,699

There were no contingent rents recognized in 2020 and 2019.