Real Estate Held for Investment

9 Months Ended

Sep. 30, 2012

Real Estate Disclosure [Text Block]

(4) Real Estate Held for Investment –

On May 14, 2012, the Company purchased a Family Dollar store in McDonough, Georgia for $1,640,500. The Company allocated $330,950 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles of $236,463 and above-market lease intangibles of $94,487. The Partnership incurred $31,630 of acquisition expenses related to the purchase that were expensed. The property is leased to Family Dollar Stores of Georgia, Inc., a subsidiary of Family Dollar Stores, Inc., under a Lease Agreement with a remaining primary term of 10.4 years (as of the date of purchase) and annual rent of $136,168.

On July 25, 2012, the Company purchased a 50% interest in a Coliseum Health urgent care clinic in Macon, Georgia for $967,500. The Company allocated $315,984 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles of $125,082 and above-market lease intangibles of $190,902. The Partnership incurred $27,240 of acquisition expenses related to the purchase that were expensed. The property is leased to Macon Healthcare, LLC under a Lease Agreement with a remaining primary term of 11.7 years and annual rent of $79,625 for the interest purchased. The remaining interest in the property was purchased by AEI Income & Growth Fund 25 LLC, an affiliate of the Company.

For the nine months ended September 30, 2012 and 2011, the value of in-place lease intangibles amortized to expense was $9,415 and $0, respectively, and the decrease to rental income for above-market leases was $5,775 and $0, respectively. For lease intangibles owned as of September 30, 2012, the weighted average remaining life is 129 months, the estimated amortization expense for in-place lease intangibles is $33,605 and the estimated decrease to rental income for above-market leases is $25,507 for each of the next five succeeding years.