Real Estate Investments

3 Months Ended

Mar. 31, 2017

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

(3)  Real Estate Investments –

On February 3, 2016, the Partnership purchased a Dollar Tree store in Cincinnati, Ohio for $1,809,915.  The Partnership allocated $285,049 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles, and allocated $80,404 to Acquired Below-Market Lease Intangibles. The Partnership incurred $56,760 of acquisition expenses related to the purchase that were expensed.  The property is leased to Dollar Tree Stores, Inc. under a lease agreement with a remaining primary term of 10 years (as of the date of purchase) and annual rent of $122,169.

On March 10, 2017, Gander Mountain Company filed for Chapter 11 reorganization and announced it was closing the store in Champaign, Illinois, following a liquidation sale of its onsite assets.  The tenant has paid rent through May 2017 and will be required to continue to pay rent unless the lease is rejected in bankruptcy court.  At this time, the Partnership has no detailed information with respect to how this bankruptcy proceeding may impact the property.  The Partnership is working to take the appropriate steps to mitigate any negative impact this situation may have on the Partnership.

In March 2017, the Partnership entered into an agreement with the tenant of the KinderCare in Andover, Minnesota to extend the lease term five years to expire on June 30, 2022.  The annual rent will remain the same throughout the remainder of the extended lease term.  As part of the agreement, the Partnership will pay a tenant improvement allowance of $30,000 that will be capitalized.  In addition, beginning on April 1, 2017, the tenant will receive free rent for three months that equals $36,362. The Partnership has decided to sell the property and classified it as Real Estate Held for Sale at March 31, 2017 with a carrying value of $622,572.

In April 2017, the Partnership entered into an agreement with the tenant of the Fresenius Medical Center in Shreveport, Louisiana to extend the lease term nine years to expire on June 30, 2027.  The annual rent will remain the same throughout the remainder of the extended lease term.  As part of the agreement, the Partnership paid a tenant improvement allowance of $46,750 that will be capitalized and depreciated.