Real Estate Assets

MF Properties

To facilitate its investment strategy of acquiring additional mortgage revenue bonds secured by MF Properties, the Partnership has acquired through its subsidiary a 99% limited partner position in one limited partnership and 100% member positions in six limited liability companies that own the MF Properties, and owns one of the MF Properties directly. The financial statements of these properties are consolidated with those of the Partnership. The general partners of these partnerships are unaffiliated parties and their 1% ownership interest in these limited partnerships is reflected in the Company’s condensed consolidated financial statements as noncontrolling interests.

Recent Transactions

In August, 2015, the Partnership sold Glynn Place, an MF Property, for approximately $5.5 million and realized a gain of approximately $1.2 million, which was considered Tier 2 income.

In May 2015, the Partnership sold The Colonial property for approximately $10.7 million and realized a gain of approximately $3.4 million, which was considered Tier 2 income.

The Partnership had the following investments in MF Properties on September 30, 2015 and December 31, 2014:



MF Properties
Property Name	Location	Number of Units	Land and Land Improvements		Buildings and Improvements		Carrying Value on September 30, 2015
Arboretum	Omaha, NE	145	$	1,750,561	$	19,289,214	$	21,039,775
Eagle Village	Evansville, IN	511	567,880		12,580,191		13,148,071
Northern View (f/k/a Meadowview)	Highland Heights, KY	269	688,539		8,168,495		8,857,034
Residences of DeCordova	Granbury, TX	110	1,137,832		8,054,866		9,192,698
Residences of Weatherford	Weatherford, TX	76	1,942,229		5,733,597		7,675,826
Suites on Paseo	San Diego, CA	394	3,162,463		38,212,634		41,375,097
The 50/50 MF Property	Lincoln, NE	475	—		32,904,959		32,904,959
Woodland Park	Topeka, KS	236	1,265,160		14,226,740		15,491,900
							149,685,360
Less accumulated depreciation (depreciation expense of approximately $1.4 million and $4.2 million for the three and nine months ended September 30, 2015)							(14,490,131		)
Balance on September 30, 2015							$	135,195,229



MF Properties
Property Name	Location	Number of Units	Land and Land Improvements		Buildings and Improvements		Carrying Value on December 31, 2014
Arboretum	Omaha, NE	145	$	1,748,502	$	19,216,623	$	20,965,125
Eagle Village	Evansville, IN	511	567,880		12,472,151		13,040,031
Glynn Place	Brunswick, GA	128	743,996		4,995,658		5,739,654
Northern View (f/k/a Meadowview)	Highland Heights, KY	224	688,539		5,479,342		6,167,881
Residences of DeCordova	Granbury, TX	110	1,137,832		8,007,390		9,145,222
Residences of Weatherford	Weatherford, TX	76	1,942,229		5,724,456		7,666,685
The 50/50 MF Property	Lincoln, NE	475	—		32,820,776		32,820,776
The Colonial	Omaha, NE	258	1,180,058		7,822,681		9,002,739
Woodland Park	Topeka, KS	236	1,265,160		14,167,096		15,432,256
							119,980,369
Less accumulated depreciation (depreciation expense of approximately $4.8 million in 2014)							(14,108,154		)
Balance on December 31, 2014							$	105,872,215

Mortgage revenue bond exchange for an MF Property

In September 2015 the owner of the Suites on Paseo property and the Partnership mutually agreed to exchange the deed for the Suites on Paseo property, a California property, in exchange for approximately $41.0 million Series A and B mortgage revenue bonds plus accrued interest. The mortgage revenue bonds were subsequently collapsed (see Note 4). This property has been included as an MF Property at September 30, 2015 for the initial value of approximately $43.4 million which represents the fair market value of the property. In addition, the Suites on Paseo reported approximately $200,000 in other current assets. The Suites on Paseo balance sheet and results of operations are included in the Company’s condensed consolidated financial statements.

A condensed balance sheet at the date of acquisition for the Suites on Paseo acquisition is below.



	Paseo 9/1/2015 (Date of Acquisition)
Cash	$	514,094
Restricted cash	187,715
In-place lease assets	1,227,770
Real estate assets	41,374,397
Other assets	259,633
Total assets	$	43,563,609

Accounts payable, accrued expenses and other	$	493,868
Net assets	43,069,741
Total liabilities and net assets	$	43,563,609

The table below shows the unaudited pro forma condensed consolidated results of operations of the Partnership as if the Suites on Paseo had been acquired at the beginning of the periods presented:



	For the Three Months Ended,				For the Nine Months Ended,
	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Revenues	$	15,232,543	$	12,951,041	$	47,095,980	$	38,903,256
Net income	$	2,641,830	$	3,671,163	$	13,848,738	$	13,586,698
Net income allocated to unitholders	$	2,615,412	$	3,634,451	$	13,710,251	$	13,450,831
Unitholder's interest in net income (loss) per unit (basic and diluted)	$	0.04	$	0.06	$	0.23	$	0.22

Consolidated VIE Properties

In April 2015, the Partnership entered into separate brokerage contracts to sell the Consolidated VIEs. The Company has classified the Consolidated VIEs as discontinued operations for all periods presented and has eliminated the Consolidated VIE segment as a reportable segment (see Notes 1, 3, 9, and 19) beginning with the second quarter of 2015. No net income or loss from these properties accrued to the Unitholders or the general partner.

Land Held for Investment and Development

On September 30, 2015, the Partnership reported approximately $4.8 million as land held for investment. The Partnership plans to strategically develop this land into rental properties.