Investments in Real Estate

12 Months Ended

Dec. 31, 2011

Investments in Real Estate [Abstract]

Investments in Real Estate

(4)  Investments in Real Estate –

The Company leases its properties to various 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.  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.  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, 2011 are as follows:

Property	Land		Buildings and Equipment		Total		Accumulated Depreciation
Sports Authority, Wichita, KS	$	697,617	$	1,533,136	$	2,230,753	$	349,621
Advance Auto Parts, Middletown, OH		112,315		909,974		1,022,289		203,228
Applebee’s, Indianapolis, IN		889,340		2,164,847		3,054,187		451,768
Applebee’s, Crawfordsville, IN		337,353		900,418		1,237,771		180,085
Starbucks, Bluffton, IN		344,008		806,108		1,150,116		141,068
Best Buy, Eau Claire, WI		474,137		1,547,025		2,021,162		242,367
Dick’s Sporting Goods, Fredericksburg, VA		1,603,559		1,523,044		3,126,603		220,842
	$	4,458,329	$	9,384,552	$	13,842,881	$	1,788,979

On February 23, 2012, the Company purchased a 53% interest in a Tractor Supply Company store in Starkville, Mississippi for $1,510,500.  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.

For properties owned as of December 31, 2011, the minimum future rent payments required by the leases are as follows:

2012	$	1,189,119
2013		1,201,276
2014		1,225,858
2015		1,233,860
2016		1,240,100
Thereafter		4,813,269
	$	10,903,482

There were no contingent rents recognized in 2011 and 2010.