8. Real Estate Assets

Recent Transactions

In June 2016, the Partnership sold the Arboretum, an MF Property, for $30.2 million and realized a gain of approximately $12.4 million, before income taxes. The Greens Hold Co, which owned Arboretum, applied its net operating loss carryforward to this gain and reported a current tax liability of approximately $4.1 million related to this sale on the Partnership’s condensed consolidated financial statements (Note 12). Distributions were recorded in accordance with the Amended and Restated LP Agreement (Note 3), 25% of Net Residual Proceeds (Tier 2) was distributed to General Partner and 75% was distributed to Unit Holders.

The Partnership has two of its MF Properties, Eagle Village, and Woodland Park, which are being marketed for sale as previously reported in the first quarter of 2016.

Management determined the Arboretum sale and potential Eagle Village and Woodland Park sale transactions do not meet the criteria for discontinued operation presentation, during the quarter ended June 30, 2016, but Woodland Park did meet the held for sale accounting guidance criteria and its real estate assets net of accumulated depreciation are classified as held for sale (Note 11).

In March 2016, the Partnership executed an agreement to sell a parcel of land in St. Petersburg, Florida, carried at a cost of approximately $3.1 million, which is part of the Land Held for Investment and Development. Due to this event, on June 30, 2016, the asset has been evaluated for impairment. The Partnership determined the carrying value of this asset is greater than its fair market value and recorded an impairment expense of approximately $62,000 on its Condensed Consolidated Statements of Operations for the three months ended June 30, 2016.

MF Properties

To facilitate its investment strategy of acquiring additional mortgage revenue bonds, that may be secured by MF Properties, on June 30, 2016 the Partnership owns, through its subsidiary, a 99% limited partner position in one limited partnership, 100% member positions in five 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 Partnership’s consolidated financial statements as noncontrolling interests. Woodland Park is not listed in the tables below as it is reported as an asset held for sale on the Partnership’s Condensed Consolidated Balance Sheets.

The Partnership had the following investments in MF Properties on June 30, 2016 and December 31, 2015:

MF Properties on June 30, 2016
Property Name	Location	Number of Units		Land and Land Improvements		Buildings and Improvements		Carrying Value on June 30, 2016
Eagle Village	Evansville, IN		511		567,880		12,614,234	$	13,182,114
Northern View (f/k/a Meadowview)	Highland Heights, KY		270		688,539		8,081,350		8,769,889
Residences of DeCordova	Granbury, TX		110		1,160,455		8,089,537		9,249,992
Residences of Weatherford	Weatherford, TX		76		1,942,229		5,746,070		7,688,299
Suites on Paseo	San Diego, CA		394		3,162,463		38,319,064		41,481,527
The 50/50 MF Property	Lincoln, NE		475		-		32,918,089		32,918,089
								$	113,289,910
Less accumulated depreciation									(13,682,124	)
Total MF Properties								$	99,607,786

MF Properties on December 31, 2015
Property Name	Location	Number of Units		Land and Land Improvements		Buildings and Improvements		Carrying Value on December 31, 2015
Arboretum	Omaha, NE		145	$	1,755,147	$	19,317,284	$	21,072,431
Eagle Village	Evansville, IN		511		567,880		12,594,935		13,162,815
Northern View (f/k/a Meadowview)	Highland Heights, KY		270		688,539		8,062,973		8,751,512
Residences of DeCordova	Granbury, TX		110		1,137,832		8,065,977		9,203,809
Residences of Weatherford	Weatherford, TX		76		1,942,229		5,738,697		7,680,926
Suites on Paseo	San Diego, CA		394		3,162,463		38,216,364		41,378,827
The 50/50 MF Property	Lincoln, NE		475		-		32,910,424		32,910,424
								$	134,160,744
Less accumulated depreciation									(14,532,168	)
Total MF Properties								$	119,628,576

The 50/50 MF Property has a ground lease with the University of Nebraska-Lincoln with an initial lease term expiring in March 2038. There is also an option to extend the lease for an additional five-year period. Annual lease payments are $100 per year.

Consolidated VIE Properties

In the fourth quarter of 2015, the owners of the Consolidated VIEs sold Bent Tree and Fairmont Oaks. The Partnership classified the Consolidated VIEs as discontinued operations for the three and six months ended June 30, 2015 and has eliminated the Consolidated VIE segment as a reportable segment during the fourth quarter of 2015 (Note 24). No net income or loss from these properties accrued to the Unitholders or the General Partner.

Land Held for Investment and Development

On June 30, 2016, the Partnership reported approximately $7.4 million as land held for investment. In March 2016, The Partnership executed a Purchase and Sale Agreement to sell a parcel of land in St. Petersburg, Florida. At June 30, 2016, the Partnership continues to assess the “highest and best use” of land held for investment and development.