9. Real Estate Assets

To facilitate its investment strategy of acquiring additional mortgage revenue bonds that may be 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 four limited liability companies that own MF Properties. The Partnership owns two of the MF Properties directly. The financial statements of these properties are consolidated with those of the Partnership. The general partners of the 99% owned MF Property is an unaffiliated party and its 1% ownership interest is reflected in the Partnership’s consolidated financial statements as noncontrolling interest.

The Partnership also investments in land with plans to develop into rental properties in the future. These investments are reported as “Land held for development” below.

The following tables represent information regarding the real estate assets owned by the Partnership at December 31, 2016 and 2015:

Real Estate Assets at December 31, 2016
Property Name	Location	Number of Units		Land and Land Improvements		Buildings and Improvements		Carrying Value on December 31, 2016
Eagle Village	Evansville, IN		511	$	567,880	$	12,655,244	$	13,223,124
Northern View (f/k/a Meadowview)	Highland Heights, KY		294		688,539		8,088,059		8,776,598
Residences of DeCordova	Granbury, TX		110		1,170,337		8,029,404		9,199,741
Residences of Weatherford	Weatherford, TX		76		1,942,229		5,751,260		7,693,489
Suites on Paseo	San Diego, CA		394		3,162,463		38,365,351		41,527,814
The 50/50 MF Property	Lincoln, NE		475		-		32,928,878		32,928,878
Jade Park	Daytona, FL		144		2,292,035		7,270,845		9,562,880
Land held for development	Various	N/A			7,531,104		-		7,531,104
								$	130,443,628
Less accumulated depreciation									(16,217,028	)
Total real estate assets								$	114,226,600

Real Estate Assets at 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
Woodland Park	Topeka, KS		236		1,265,160		14,247,045		15,512,205
Land held for development	Various	N/A			7,368,255		-		7,368,255
								$	157,041,204
Less accumulated depreciation									(16,023,814	)
Total real estate assets								$	141,017,390

Recent Transactions

In December 2016, the Partnership executed a Purchase and Sale Agreement (“PSA”) for the sale of Northern View. See Note 28 for additional information.

In August and November 2016, the Partnership executed PSA’s to acquire two contiguous tracts of land in Omaha, Nebraska. If these tracts of land are successfully acquired, they will be classified as “Land held for development.”

In July and June 2016, the Partnership sold the Woodland Park and Arboretum MF Properties for gross proceeds of approximately $15.7 million and $30.2 million, respectively. The Partnership realized gains of approximately $1.7 million and $12.4 million before income taxes, respectively. The Greens Hold Co, which owned Woodland Park and Arboretum, applied its tax net operating loss carryforward to these gains and reported current tax expense of approximately $4.6 million related to these sales on the Partnership’s consolidated financial statements (Note 12). Distributions were recorded in accordance with the Amended and Restated LP Agreement (Note 3), and 25% of Net Residual Proceeds (Tier 2) was distributed to the General Partner and 75% was distributed to the Unitholders. Management determined the Arboretum and Woodland Park sale transactions and the potential Northern View sale transaction did not meet the criteria for discontinued operation presentation.

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. The asset was evaluated for impairment and the Partnership recorded an impairment expense of approximately $62,000 in the second quarter of 2016.

The sales of the Consolidated VIEs were closed in the fourth quarter of 2015 with the gains and results of operations of the Consolidated VIEs reported as part of the discontinued operations in net income for all periods presented. No net income or loss from these properties’ operations or sale accrued to the Unitholders or the General Partner during 2016 and 2015. For additional details see Note 2 to the Company’s consolidated financial statements.

During the fourth quarter of 2015, the Partnership purchased land in Panama City, Florida, for approximately $2.9 million to be held for investment and development.

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.

Net income, exclusive of the gains on sale, related to the Arboretum, Woodland Park, Glynn Place and the Colonial MF Properties for the years ended December 31, 2016, 2015 and 2014 are as follows:

	For the Years Ended December 31,
	2016		2015		2014
Net income (loss)	$	222,679	$	331,391	$	(370,231	)

Suites on Paseo Acquisition

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 6). The initial value of approximately $43.4 million represented the fair market value of the property plus the Suites on Paseo contributed approximately $200,000 in other current assets which resulted in a total of approximately $43.6 million.

A condensed balance sheet at the date of acquisition for the Suites on Paseo acquisition is as follows:

	Suites on 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

Jade Park Acquisition

In September 2016, the Partnership closed on the purchase of Jade Park, an MF Property. The property is contiguous to the Lake Forest property, a mortgage revenue bond investment of the Partnership. The land improvements and buildings and improvements are being depreciated on a straight-line basis over a weighted average useful life of 22.7 years. The in-place lease assets are being amortized over a useful life of 6 months. The Partnership incurred approximately $135,000 of acquisition costs related to the purchase.

A condensed balance sheet at the date of acquisition for the Jade Park acquisition is as follows:

	Jade Park 9/30/2016 (Date of Acquisition)
Land and improvements	$	2,292,035
Buildings and improvements		7,244,534
In-place lease assets (included in other assets)		463,431
Other assets		18,126
Total assets	$	10,018,126

Accounts payable, accrued expenses and other	$	135,326
Net assets		9,882,800
Total liabilities and net assets	$	10,018,126

Pro Forma Consolidated Results of Operations

The table below shows the unaudited pro forma condensed consolidated results of operations of the Partnership as if the Suites on Paseo and Jade Park had been acquired at January 1, 2015:

	For the Years Ended December 31,
	2016		2015
Pro forma revenues	$	60,008,686	$	64,162,327
Pro forma net income		24,663,645		23,075,438
Pro forma net income allocated to Unitholders		21,047,854		16,917,875
Pro forma Unitholder's interest in net income per unit (basic and diluted)	$	0.35	$	0.28

For the year ended December 31, 2015, the Suites on Paseo added approximately $1.8 million in total revenue and approximately $1.0 million in net loss to the Partnership since the bond exchange on September 1, 2015.

For the year ended December 31, 2016, Jade Park added approximately $0.4 million in total revenue and approximately $0.4 million in net loss to the Partnership since the acquisition on September 30, 2016.