(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, except for the Tractor Supply Company store, 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 leases for the Best Buy store and the Fresenius Medical Center were extended to end on January 19, 2023 and June 30, 2027, 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 Fresenius Medical Center was constructed and acquired in 2008. The Tractor Supply Company store was constructed in 2006 and acquired in 2014. 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, except for $46,750 of tenant improvements related to the Fresenius Medical Center.

The cost of the properties not held for sale and related accumulated depreciation at December 31, 2018 are as follows:


Property	Land		Buildings		Total		Accumulated Depreciation

Jared Jewelry, Hanover, MD	$	861,065	$	1,128,070	$	1,989,135	$	671,207
Jared Jewelry, Auburn Hills, MI		280,993		1,185,055		1,466,048		661,647
Best Buy, Eau Claire, WI		853,357		2,784,349		3,637,706		1,215,827
Fresenius Medical Center, Shreveport, LA		102,046		1,305,321		1,407,367		523,033
Tractor Supply, Canton, GA		700,000		1,407,183		2,107,183		257,985
Gander Mountain, Champaign, IL		507,000		1,279,291		1,786,291		230,274
Dollar Tree, Cincinnati, OH		355,000		1,250,270		1,605,270		145,867
	$	3,659,461	$	10,339,539	$	13,999,000	$	3,705,840

For the years ended December 31, 2018 and 2017, the Partnership recognized depreciation expense of $416,388 and $424,895, respectively.

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


		2018				2017
		Cost		Accumulated Amortization		Cost		Accumulated Amortization
Acquired Intangible Lease Assets (in-place lease intangibles with a weighted average life of 64 and 76 months, respectively)	$	807,178	$	533,849	$	807,178	$	479,753

Acquired Below-Market Lease Intangibles (weighted average life of 59 and 71 months, respectively)	$	161,007	$	73,352	$	161,007	$	54,252

For the years ended December 31, 2018 and 2017, the value of in-place lease intangibles amortized to expense was $54,096 and $335,527, and the increase to rental income for below-market leases was $19,100 and $19,100, respectively.

For lease intangibles not held for sale at December 31, 2018, the estimated amortization for the next five years is as follows:


	Amortization Expense for In-Place Lease Intangibles		Increase to Rental Income for Below-Market Leases

2019	$	54,096	$	19,100
2020		54,096		19,100
2021		47,762		16,348
2022		28,744		8,108
2023		28,744		8,108
	$	213,442	$	70,764

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. The annual rent from this property represented approximately 13% of the total annual rent of the Partnership's property portfolio. The loss of rent and increased expenses related to this property decreased the Partnership's cash flow. Consequently, in the third quarter of 2017, the Partnership reduced its regular quarterly cash distribution rate from $13.18 per Unit to $10.51 per Unit.

As a result of the bankruptcy court terminating the lease for the Gander Mountain store, the Partnership included an additional $270,097 in Depreciation and Amortization in the second quarter of 2017, which represented the unamortized balance of the in-place lease intangible that was created when the property was purchased in 2014.

In March 2017, the Partnership entered into an agreement with the tenant of the KinderCare daycare center in Andover, Minnesota to extend the lease term five years to end 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 paid a tenant improvement allowance of $30,000 that was capitalized. In addition, beginning on April 1, 2017, the tenant received free rent for three months that equaled $36,362.

In the first quarter of 2017, the Partnership decided to sell the KinderCare daycare center. In October 2017, the Partnership entered into an agreement to sell the property to an unrelated third party. On November 14, 2017, the sale closed with the Partnership receiving net proceeds of $1,696,401, which resulted in a net gain of $1,043,829. At the time of sale, the cost and related accumulated depreciation was $1,294,207 and $641,635, respectively.

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 end 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 was capitalized and will be depreciated.

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 will decrease from $124,049 to $105,560 effective January 1, 2020.

For properties owned as of December 31, 2018, the minimum future rent payments required by the leases are as follows:

2019	$	1,017,750
2020		893,701
2021		857,067
2022		535,877
2023		249,357
Thereafter		649,221
	$	4,202,973

There were no contingent rents recognized in 2018 and 2017.