Real Estate Held for Investment

12 Months Ended

Dec. 31, 2013

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

(4) Real Estate Held for Investment –

The Company leases its properties to tenants under net leases, classified as operating leases. Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property. For some leases, the Company is responsible for repairs to the structural components of the building, the roof and the parking lot. At the time the properties were acquired, the remaining primary lease terms varied from 10 to 20 years. The leases provide the tenants with three to four five-year renewal options subject to the same terms and conditions as the primary term.

The Company's properties are commercial, single-tenant buildings. The Sports Authority store was constructed in 1996, renovated in 2001 and acquired in 2006. The Advance Auto Parts store was constructed in 2004 and acquired in 2006. The Applebee’s restaurant in Indianapolis, Indiana was constructed in 1997 and acquired in 2006. The Applebee’s restaurant in Crawfordsville, Indiana was constructed in 1996 and acquired in 2006. The Starbucks restaurant was constructed and acquired in 2007. The Best Buy store was constructed in 1990, renovated in 1997 and acquired in 2008. The land for the Dick’s Sporting Goods store was acquired in 2007 and construction of the store was completed in 2008. The Tractor Supply Company store was constructed and acquired in 2012. There have been no costs capitalized as improvements subsequent to the acquisitions.

The cost of the properties not held for sale and related accumulated depreciation at December 31, 2013 are as follows:

Property	Land		Buildings and Equipment		Total		Accumulated Depreciation
Sports Authority, Wichita, KS	$	697,617	$	1,533,136	$	2,230,753	$	472,273
Advance Auto Parts, Middletown, OH		112,315		909,974		1,022,289		276,026
Applebee’s, Indianapolis, IN		889,340		2,164,847		3,054,187		624,956
Applebee’s, Crawfordsville, IN		337,353		900,418		1,237,771		252,119
Starbucks, Bluffton, IN		344,008		806,108		1,150,116		205,556
Best Buy, Eau Claire, WI		474,137		1,547,025		2,021,162		366,129
Dick’s Sporting Goods, Fredericksburg, VA		1,603,559		1,523,044		3,126,603		358,494
Tractor Supply, Starkville, MS		397,500		947,775		1,345,275		71,083
	$	4,855,829	$	10,332,327	$	15,188,156	$	2,626,636

For the years ended December 31, 2013 and 2012, the Company recognized depreciation expense for properties not held for sale of $421,198 and $416,459, respectively.

On February 23, 2012, the Company purchased a 53% interest in a Tractor Supply Company store in Starkville, Mississippi for $1,510,500. The Company allocated $257,767 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles, and allocated $92,542 to Acquired Below-Market Lease Intangibles. The Company incurred $28,135 of acquisition expenses related to the purchase that were expensed. The property is leased to Tractor Supply Company under a Lease Agreement with a remaining primary term of 15 years (as of the date of purchase) and annual rent of $115,542 for the interest purchased.

The following schedule presents the cost and related accumulated amortization of acquired lease intangibles not held for sale at December 31:

		2013				2012
		Cost		Accumulated Amortization		Cost		Accumulated Amortization
Acquired Intangible Lease Assets  (weighted average life of 157 and 169 months, respectively)	$	257,767	$	31,680	$	257,767	$	14,400
Acquired Below-Market Lease Intangibles  (weighted average life of 157 and 169 months, respectively)	$	92,542	$	11,374	$	92,542	$	5,170

For the years ended December 31, 2013 and 2012, the value of in-place lease intangibles amortized to expense was $17,280 and $14,400, respectively, and the increase to rental income for below-market leases was $6,204 and $5,170, respectively. For lease intangibles not held for sale at December 31, 2013, the estimated amortization expense is $17,280 and the estimated increase to rental income is $6,204 for each of the next five succeeding years.

For properties owned as of December 31, 2013, the minimum future rent payments required by the leases are as follows:

2014	$	1,217,236
2015		1,222,351
2016		1,228,591
2017		1,004,456
2018		804,246
Thereafter		4,062,843
	$	9,539,723

There were no contingent rents recognized in 2013 and 2012.