Real Estate Investments

9 Months Ended

Sep. 30, 2019

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

(4)  Real Estate Investments –

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.

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.

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 approximately $2,739,000, which resulted in a net gain of approximately $813,300.  At the time of sale, the cost and related accumulated depreciation and amortization was $2,302,500 and $376,790, respectively.  At September 30, 2019, the property was classified as Real Estate Held for Sale with a carrying value of $1,925,710.