Investments in Real Estate

12 Months Ended

Dec. 31, 2011

Investments in Real Estate [Abstract]

Investments in Real Estate

(4)  Investments in Real Estate –

The Partnership leases its properties to various 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.  The leases provide the tenants with two to five 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 Arby's restaurant was constructed and acquired in 1995.  The KinderCare daycare center in Andover, Minnesota was constructed in 1998 and acquired in 2002.  The Winn-Dixie store was constructed in 1997 and acquired in 2003.  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 CarMax auto superstore was constructed in 2003 and acquired in 2005.  The Applebee’s restaurant in Johnstown, Pennsylvania was constructed in 1996 and acquired in 2006.  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 land for the Tractor Supply Company store was acquired in 2008 and construction of the store was completed in 2009.  The Scott & White Clinic was constructed and acquired in 2010.  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, 2011 are as follows:

Property	Land		Buildings and Equipment		Total		Accumulated Depreciation
Arby's, Montgomery, AL	$	10,033	$	13,016	$	23,049	$	8,637
KinderCare, Andover, MN		179,755		1,084,452		1,264,207		413,898
Jared Jewelry, Hanover, MD		861,065		1,128,070		1,989,135		355,343
Jared Jewelry, Auburn Hills, MI		280,993		1,185,055		1,466,048		329,839
CarMax, Lithia Springs, GA		815,180		1,070,051		1,885,231		290,697
Applebee’s, Johnstown, PA		431,754		1,251,133		1,682,887		264,822
Best Buy, Eau Claire, WI		853,357		2,784,349		3,637,706		436,215
Fresenius Medical Center, Shreveport, LA		102,046		1,258,571		1,360,617		163,615
Tractor Supply, Rapid City, SD		588,967		1,368,767		1,957,734		130,034
Scott & White, College Station, TX		290,550		1,142,918		1,433,468		55,241
	$	4,413,700	$	12,286,382	$	16,700,082	$	2,448,341

On October 20, 2010, the Partnership purchased a 39% interest in a Scott & White Clinic in College Station, Texas for $1,433,468.  The Partnership incurred $31,422 of acquisition expenses related to the purchase that were expensed.  The property is leased to Scott & White Healthcare under a Lease Agreement with a remaining primary term of 9.7 years (as of the date of purchase) and annual rent of $120,120 for the interest purchased.

At December 31, 2011, the Partnership owned a 2.6811% interest in an Arby’s restaurant in Montgomery, Alabama.  The remaining interests in this property are owned by unrelated third parties, who own the property with the Partnership as tenants-in-common.

For properties owned as of December 31, 2011, the minimum future rent payments required by the leases are as follows:

2012	$	1,363,493
2013		1,380,814
2014		1,389,000
2015		1,407,275
2016		1,418,419
Thereafter		5,228,388
	$	12,187,389

There were no contingent rents recognized in 2011 and 2010.