Note 17 - Fair Value Measurements

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Text Block]

17.   Fair Value Measurement

The Company adopted ASC 820, Fair Value Measurements and Disclosures (“ASC 820”)which defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements.  The framework that is set forth in this standard is applicable to the fair value measurements where it is permitted or required under other accounting pronouncements.

ASC 820 defines fair value as the exit price, which is the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants at the measurement date. ASC 820 establishes a three-tier value hierarchy that prioritizes inputs to valuation techniques used for fair value measurement.

· Level 1 consists of observable market data in an active market for identical assets or liabilities.

· Level 2 consists of observable market data, other than that included in Level 1, that is either directly or indirectly observable.

· Level 3 consist of unobservable market data.   The input may reflect the assumptions of the Company, not a market participant, if there is little available market data and the Company’s own assumptions are considered by management to be the best available information.

In accordance with ASC 820, the following table represents the Company’s fair value hierarchy for its financial assets and liabilities as of December 31, 2011:

	December 31, 2011
	Fair Value		Level 1		Level 2		Level 3
Liabilities
Interest rate swaps	$	241,438	$	-	$	241,438	$	-
Total liabilities	$	241,438	$	-	$	241,438	$	-

The interest rate swaps were valued at the end of 2011 based on available market information. The Company’s two interest rate swaps matured on February 8, 2012. See note 12, Derivative Activities, above.

Fair Value of Notes Payable

The fair value of the Company’s notes payable is determined using various methods, including quoted market prices for notes with similar terms of maturity, which is a Level 2 measurement, and discounted cash flows, which is a Level 3 measurement.   The carrying amounts and estimated fair values of notes payable are as follows:

	December 31, 2012
	Carrying Value		Fair Value
Notes payable	$	269,660,531	$	171,841,824

The fair value of notes payable at December 31, 2011 approximates book value.