EX-31.1

EXHIBIT 31.1

SARBANES-OXLEY SECTION 302(a) CERTIFICATION

I, Terry S. Brown, certify that:

1. I have reviewed this Annual Report on Form 10-K of AmREIT Monthly Income & Growth Fund III, Ltd.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	March 30, 2015	By:	/s/ Terry S. Brown
		Name:	Terry S. Brown
		Title:	President and Director of AmREIT Monthly Income & Growth III Corporation, the General Partner of AmREIT Monthly Income & Growth Fund III, Ltd.

EX-31.2

EXHIBIT 31.2

SARBANES-OXLEY SECTION 302(a) CERTIFICATION

I, Chad C. Braun, certify that:

1. I have reviewed this Annual Report on Form 10-K of AmREIT Monthly Income & Growth Fund III, Ltd.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	March 30, 2015	By:	/s/ Chad C Braun
		Name:	Chad C. Braun
		Title:	Vice President and principal financial officer of AmREIT Monthly Income & Growth III Corporation, the General Partner of AmREIT Monthly Income & Growth Fund III, Ltd.

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of AmREIT Monthly Income & Growth Fund III, Ltd. (the “Company”) on Form 10-K for the period ended December 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Terry S. Brown, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, in my capacity as an officer of the General Partner of the Company, that, to my knowledge:

1. The Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	March 30, 2015	By:	/s/ Terry S. Brown
		Name:	Terry S. Brown
		Title:	President and Director of AmREIT Monthly Income & Growth III Corporation, the General Partner of AmREIT Monthly Income & Growth Fund III, Ltd

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of AmREIT Monthly Income & Growth Fund III, Ltd. (the “Company”) on Form 10-K for the period ended December 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Chad C. Braun, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, in my capacity as an officer of the General Partner of the Company, that, to my knowledge:

1. The Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	March 30, 2015	By:	/s/ Chad C. Braun
		Name:	Chad C. Braun
		Title:	Vice President and principal financial officer of AmREIT Monthly Income & Growth III Corporation, the General Partner of AmREIT Monthly Income & Growth Fund III, Ltd.

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CONCENTRATIONS (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Base rent income	$ 784	$ 782	$ 749
Trend Mall (Member)
Base rent income	381	379	379
Fadis Mediterranean Delight (Member)
Base rent income	141	141	142
Potbelly Sandwich Works
Base rent income	122	122	122
Cricket Communications (Member)
Base rent income	76	76	65
Bless Beauty [Member]
Base rent income	$ 64	$ 64	$ 41

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INVESTMENTS IN NON-CONSOLIDATED ENTITIES (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Property, net	$ 12,019	$ 27,489
Other assets	420	418
Liabilities:
Notes payable	8,980	24,587
Expenses
Depreciation and amortization	353	356	363
Interest	665	738	955
MIG III share of net income (loss)	(1,094)	(295)	(1,325)
Non-Consolidated Entities (Member)
ASSETS
Property, net	145,653	148,774
Cash	5,605	4,806
Other assets	9,806	10,726
Total assets	161,064	164,306
Liabilities:
Notes payable	102,524	100,286
Other liabilities	9,102	8,441
Partners' capital	49,438	55,579
Total liabilities and partners' capital	161,064	164,306
Revenues
Revenue	17,023	15,996	15,270
Expenses
Depreciation and amortization	6,383	6,004	5,788
Interest	3,847	4,241	4,250
Other	9,200	4,891	7,475
Total expenses	19,430	15,136	17,513
Net income (loss)	(2,407)	860	(2,243)
MIG III share of net income (loss)	$ (1,091)	$ (295)	$ (1,325)

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RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Summary of compensation paid to affiliates

The following table summarizes the amount of such compensation incurred by us during the years ended December 31, 2014, 2013 and 2012 (in thousands):

	For the year ended December 31,
Service description & compensation	2014		2013		2012
Asset management fees	$	355	$	235	$	235
Interest expense - related party		5		103		332
Property management fees(1)		95		128		118
Leasing costs		4		44		187
Administrative costs reimbursements		380		380		390
	$	839	$	890	$	1,262

(1) Amounts include discontinued operations.

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RELATED PARTY TRANSACTIONS (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Asset management fees	$ 355		$ 235		$ 235
Property management fees	52		48		47
Affiliated Entities (Member)
Asset management fees	355		235		235
Interest expense - related party	5		103		332
Property management fees	95	[1]	128	[1]	118	[1]
Leasing costs	4		44		187
Administrative costs reimbursements	380		380		390
Total	$ 839		$ 890		$ 1,262

[1] Amounts include discontinued operations.

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FAIR VALUE MEASUREMENTS (Details Narrative) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Notes payable fair value	$ 25,000
Fair Value, Inputs, Level 2 [Member] | Westside Plaza - Note A (Member)
Notes payable fair value	8,500
Fair Value, Inputs, Level 3 [Member] | Westside Plaza - Note B (Member)
Notes payable fair value	$ 590

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Our financial records are maintained on the accrual basis of accounting whereby revenues are recognized when earned and expenses are recorded when incurred. The consolidated financial statements include our accounts as well as the accounts of any wholly- or majority-owned subsidiaries in which we have a controlling financial interest. Investments in joint ventures and partnerships where we have the ability to exercise significant influence but do not exercise financial and operating control are accounted for using the equity method (see Note 4). The significant accounting policies of our non-consolidated entities are consistent with those of our subsidiaries in which we have a controlling financial interest. As of December 31, 2014, we do not have any interests in variable interest entities. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of demand deposits at commercial banks and money market funds.

Revenue Recognition

Rental income from operating leases – We lease space to tenants under agreements with varying terms. Our leases are accounted for as operating leases, and, although certain leases of the properties provide for tenant occupancy during periods for which no rent is due and/or for increases or decreases in the minimum lease payments over the terms of the leases, revenue is recognized on a straight-line basis over the terms of the individual leases. Revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, possession or control occurs on the lease commencement date. In cases where significant tenant improvements are made prior to lease commencement, the leased asset is considered to be the finished space, and revenue recognition therefore begins when the improvements are substantially complete. Revenue from tenant reimbursements of taxes, maintenance expenses and insurance is recognized in the period the related expense is recorded. Accrued rents are included in tenant and accounts receivable, net.

Gains on Sale of Real Estate

Gains on sales of real estate are not recognized under the full accrual method until certain criteria are met. Gains relating to transactions that do not meet the criteria for full accrual method of accounting are deferred and recognized when the full accrual method of accounting criteria are met or by using the installment or deposit methods of profit recognition, as appropriate under the circumstances.

Receivables and Allowance for Uncollectible Accounts

Tenant and Accounts Receivable, Net - Included in tenant receivables are base rents, tenant reimbursements and adjustments related to recording rents on a straight-line basis. An allowance for the uncollectible portion of accrued rents and accounts receivable is determined based upon customer credit-worthiness (including expected recovery of our claim with respect to any tenants in bankruptcy), historical bad debt levels and current economic trends. Bad debt expenses and any related recoveries are included in property expense. As of December 31, 2014 and 2013, our allowance for uncollectible accounts related to our tenant receivables was $0.

Accounts Receivable – Related Party - Included in accounts receivable related party are short-term cash advances provided to certain of our affiliated investment entities primarily for their redevelopment needs. These cash advances are due upon demand.

Redevelopment Properties

Expenditures related to the redevelopment of real estate are capitalized as part of construction in progress, which includes carrying charges, primarily interest, real estate taxes and loan acquisition costs, and direct and indirect redevelopment costs related to buildings under construction. The capitalization of such costs ceases at the earlier of the date of completion of major construction or when the property, or any completed portion, becomes available for occupancy. We capitalize costs associated with pending acquisitions of raw land as incurred and expense such costs if and when the acquisition of the property becomes no longer probable.

Acquired Properties and Acquired Intangibles

We account for acquisitions of operating real properties as business acquisitions, as we believe most operating real estate meets the definition of a “business” under GAAP. Accordingly, we allocate the purchase price of each acquired property to land, building and improvements, identifiable intangible assets and to the acquired liabilities based on their respective fair values. Identifiable intangibles include amounts allocated to acquire above- and below-market leases, the value of in-place leases and customer relationship value, if any. Intangibles related to in-place lease value and above and below-market leases are recorded as acquired lease intangibles and are amortized as an adjustment to rental revenue or amortization expense, as appropriate, over the remaining terms of the underlying leases. Below-market leases include fixed-rate renewal periods where we believe the renewal is reasonably assured. Premiums or discounts on debt are amortized to interest expense over the remaining term of such debt. Costs related to acquiring operating properties are expensed as incurred.

Depreciation

Depreciation is computed using the straight-line method over an estimated useful life of up to 39 years for buildings and site improvements and over the lesser of the useful life or the respective lease term for tenant improvements. We re-evaluate the useful lives of our buildings and improvements as warranted by changing conditions at our properties. As part of this re-evaluation, we may also consider whether such changing conditions indicate a potential impairment, and we perform an impairment analysis, as necessary, at the property level. In the case of a property redevelopment, we reassess the useful lives of specific buildings or other improvements to be demolished as part of that redevelopment once the redevelopment is probable of occurring.

Impairment

We review our properties for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets, including acquired lease intangibles and accrued rental income, may not be recoverable through operations. We determine whether an impairment in value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), including the residual value of the property, with the carrying value of the individual property. If impairment is indicated, a loss will be recorded for the amount by which the carrying value of the asset exceeds its fair value. Both the estimated undiscounted cash flow analysis and fair value determination are based upon various factors that require complex and subjective judgments to be made by management. For our multi-building retail centers, we consider the entire retail center as the asset group for purposes of our impairment analysis. We review our investments in non-consolidated entities for impairment based on a similar review of the properties held by the investee entity.

Our Woodlake Point recorded an impairment of $2.0 million as of December 31, 2014. $600,000 of which, represents our 30% portion and is included in our loss from non-consolidated entities on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 4.

No impairment charges were recognized for the years ended December 31, 2013 and 2012.

Deferred Costs

Deferred costs include deferred leasing costs and loan acquisition costs, net of amortization. Loan acquisition costs are incurred in obtaining financing and are amortized to interest expense over the term of the debt agreements using a method that approximates the effective interest method. Deferred leasing costs consist of external commissions associated with leasing our properties and are amortized to depreciation and amortization expense on a straight-line basis over the lease term. If a lease is terminated early, or a loan is paid in full prior to maturity, the remaining deferred costs will be written off. Accumulated amortization related to loan acquisition costs as of December 31, 2014 and 2013, totaled $269,000 and $90,000, respectively. Accumulated amortization related to leasing costs as of December 31, 2014 and 2013, totaled $191,000 and $93,000, respectively.

Income Taxes

No provision for U.S. federal income taxes is included in the accompanying consolidated financial statements. As a partnership, we are not subject to federal income tax, and the federal tax effect of our activities is passed through to our partners.We are, however, subject to taxation under the Texas Margin Tax, which is computed by applying the applicable tax rate (1% for the Partnership) to the profit margin, which, generally, will be determined for us as total revenue less a 30% standard deduction. For the years ended December 31, 2014, 2013 and 2012, we recorded a state income tax benefit of $0, $7,000 and $9,000, respectively.

Interest

Interest is charged to interest expense as it accrues. No interest has been capitalized on any consolidated properties since inception of the Partnership.

Segments

We determined that we have one reportable segment with activities related to investing in real estate. Our investments in real estate generate rental revenue and other income through the leasing of multi-tenant retail properties, which comprised 100% of our total consolidated revenues for all periods presented. We evaluate operating performance on an individual property level. However, as all of our properties have similar economic characteristics, tenants, products and services, our properties have been aggregated into one reportable segment.

Operating Leases

Our operating leases generally range from two to twenty-five years and generally include one or more five-year renewal options. A summary of minimum future base rentals to be received, exclusive of any renewals, under noncancelable operating leases in existence as of December 31, 2014, is as follows (in thousands):

	Minimum
	future base
Year	rentals
2015	$	869
2016		668
2017		168
2018		110
2019		46
Thereafter		-
	$	1,861

Future minimum rental revenue excludes amounts that may be received from tenants for reimbursements of operating costs, real estate taxes and insurance. Expense reimbursements recognized as revenue totaled $752,000, $1.0 million and $882,000 for the years ended December 31, 2014, 2013 and 2012, respectively.

New Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09 “Topic 605,” “Revenue from Contracts with Customers” that will supersede the existing revenue recognition guidance under GAAP. The accounting update states that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. It also establishes a five-step model that requires companies to exercise judgment when considering the terms of a contract and all relevant facts and circumstances. It is effective for annual reporting periods beginning after December 15, 2016. This standard does not supersede current accounting literature for lease contracts. We are currently evaluating this accounting update and our existing revenue recognition policies for contracts other than our lease contracts with tenants to determine what impact, if any, this new guidance could have on our consolidated financial statements.

In April 2014, the FASB issued ASU No. 2014-08 “Topic 946,” “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” Under the update, discontinued operations as defined as either 1) A component of and entity (or group of components) that (i) has been disposed of or meets the criteria to be classified as held-for-sale and (ii) represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, or 2) is a business or nonprofit activity that on acquisition, meets the criteria to be classified as held-for-sale. The accounting update is effective on a prospective basis for disposals or assets meeting the definition as held-for-sale for accounting periods beginning on or after December 15, 2014. Early application is permitted, but only for those disposals that have not been reported in previously issued financial statements. We did not elect to early adopt this update. The results of operations from our Lantern Lane property sold on June 25, 2014 are shown as discontinued operations in all periods presented. See Note 3.

Subsequent Events

On February 18, 2015, all of the outstanding common stock of AmREIT was acquired by Edens. See Note 1.

We identified no additional subsequent events as of the date of this filing that materially impacted our consolidated financial statements.

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Schedule III - Consolidated Real Estate Owned and Accumulated Depreciation (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Total Cost - Total	$ 14,806,113	$ 34,101,294	$ 33,789,383	$ 44,738,309
Accumulated Depreciation	(2,786,757)	(6,611,683)	(5,732,440)	(6,977,583)
Westside Plaza
Initial Cost - Building and Improvements	8,631,610
Initial Cost - Land	4,750,000
Cost Capitalized Subsequent to Acquisitions	1,424,503
Total Cost - Building and Improvements	10,046,510
Total Cost - Land	4,759,603
Total Cost - Total	14,806,113
Accumulated Depreciation	(2,786,757)
Date Acquired	Sep. 30, 2005
Encumbrances	$ 8,980,273

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REAL ESTATE DISPOSITIONS AND DISCONTINUED OPERATIONS (Details Narrative) (Olmos Creek, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2011
Olmos Creek
Mortgage payable	$ 11,200
Maturity date	Nov. 01, 2011

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Accounting Policies [Abstract]
2015	$ 869
2016	668
2017	168
2018	110
2019	46
Total	$ 1,861

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Schedule III - Consolidated Real Estate Owned and Accumulated Depreciation (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Real estate assets
Beginning Balance	$ 34,101,294	$ 33,789,383	$ 44,738,309
Acquisitions/additions	54,952	311,911	516,632
Disposals	(19,350,133)		(11,465,558)
Ending Balance	14,806,113	34,101,294	33,789,383
Accumulated depreciation
Beginning Balance	6,611,683	5,732,440	6,977,583
Accumulated Depreciation - Disposals	(4,420,236)		(2,176,682)
Accumulated Depreciation - Depreciation expense	595,309	879,243	931,539
Accumulated Depreciation - Ending Balance	$ 2,786,757	$ 6,611,683	$ 5,732,440

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REAL ESTATE DISPOSITIONS AND DISCONTINUED OPERATIONS (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenues:
Rental income from operating leases	$ 1,122	$ 2,229	$ 2,012
Total revenues	1,122	2,229	2,012
Expenses:
General and administrative	25	44	17
Property expense	336	635	694
Property management fees - related party	43	80	71
Legal and professional	7	9	100
Depreciation and amortization	315	660	778
Total operating expenses	726	1,428	1,660
Operating income (loss)	396	801	352
Other income (expense):
Interest and other income		3	35
Interest expense	(232)	(526)	(708)
Total expense, net	(232)	(523)	(673)
Income (loss) from real estate operations	164	278	(321)
Gain on debt extinguishment			1,533
Gain on sale of real estate	6,781
Income from discontinued operations	$ 6,945	$ 278	$ 1,212

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INVESTMENTS IN NON-CONSOLIDATED ENTITIES (Details Narrative) (USD $)	12 Months Ended			0 Months Ended		12 Months Ended	0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Oct. 19, 2012	Apr. 10, 2012	Dec. 31, 2009 Rooms	Sep. 18, 2013	Jun. 27, 2013	Sep. 30, 2013 sqft	Sep. 16, 2013
Cost of real estate sold	$ 19,350,133		$ 11,465,558
Payments on notes payable	(15,607,000)	(172,000)	(148,000)
Payments on notes payable - related party	(549,000)	(5,872,000)	(1,000,000)
Advances to related party	(348,000)	(391,000)
Settlement of environmental liability		112,000
Accounts receivable - related party	262,000	622,000
Derivative Financial Instruments
Increase (decreease) in fair value of swap	20,000	(55,000)
PTC/BSQ Holding Company LLC (Member)
Percentage of ownership interest	20.00%	20.00%
GLA	442,072
Percentage of ownership interest owned by others	80.00%
Loan amount								44,400,000
Incurred redevelopment costs	11,600,000
Expected amount of redevelopment costs	11,900,000
Payments on notes payable - related party		1,400,000
Proceeds from distribution received		1,900,000
PTC/BSQ Holding Company LLC (Member) | Interest Rate Swap (Member)
Derivative Financial Instruments
Notional amount	54,000,000
Fixed interest rate	2.51%
PTC/BSQ Holding Company LLC (Member) | Refinanced Mortgage (Member)
Loan amount	54,000,000
Future funding available under loan	4,500,000
Amreit Casa Linda Lp (Member)
Percentage of ownership interest	50.00%	50.00%
GLA	324,509
Percentage of ownership interest owned by others	50.00%
Mortgage loan interest rate cap	3.00%
Incurred redevelopment costs	2,600,000
Expected amount of redevelopment costs	3,000,000
Settlement of environmental liability		224,000
Derivative Financial Instruments
Increase (decrease) in fair value of non-hedge cap	(51,000)	11,000
Amreit Casa Linda Lp (Member) | Albertson [Member]
Square footage of real estate property	59,561
Amreit Casa Linda Lp (Member) | Refinanced Mortgage (Member)
Loan amount	38,000,000
Future funding available under loan	4,500,000
Woodlake Pointe (Member)
Percentage of ownership interest	30.00%	30.00%
Square footage of real estate property									45,000
GLA	82,120
Percentage of ownership interest owned by others	70.00%
Repayment of debt on real property		6,600,000
Proceeds from sale property		12,000,000
Payments on notes payable - related party		650,000
Proceeds from distribution received		1,500,000
Impairment of the property	600,000
Fair value of property	8,200,000
Woodlake Pointe (Member) | M I G I V (Member)
Percentage of ownership interest owned by others	60.00%
Woodlake Pointe (Member) | Amreit Realty Investment Corporation (Member)
Percentage of ownership interest owned by others	10.00%
Woodlake Pointe (Member) | Impaired Multi-Tenant Retail Property
Impairment of the property	2,000,000
5433 Westheimer Lp (Member)
Investment subject to risk	2,400,000
Percentage of ownership interest	57.50%	57.50%
GLA	133,881
Number of rooms						152
Cost of real estate sold						31,700,000
Percentage of ownership interest owned by others	42.50%
Repayment of debt on real property					3,800,000
Mortgage loans on real estate term				5 years
Loan amount	8,200,000			8,700,000
Percentage of partner's ownership interest in joint venture	25.00%
Incurred redevelopment costs	6,600,000
Expected amount of redevelopment costs	8,200,000
Proceeds from sale property					28,700,000
Advances to related party	312,000
Accounts receivable - related party	400,000
5433 Westheimer Lp (Member) | Note Payable (Member)
Loan face amount	312,000
Borrowing capacity of note	1,500,000
Interest rate	10.00%
Amreit Woodlake Square Lp (Member)
Percentage of ownership interest		3.00%
Proceeds from sale property							$ 41,600,000
Amreit Woodlake Square Lp (Member) | M I G I V (Member)
Percentage of ownership interest owned by others										6.00%
Amreit Woodlake Square Lp (Member) | Amreit Realty Investment Corporation (Member)
Percentage of ownership interest owned by others										1.00%
Amreit Woodlake Square Lp (Member) | Institutional Partner (Member)
Percentage of ownership interest owned by others										90.00%

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DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS

1. DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS

General

We are a Texas limited partnership formed in April 2005 to acquire, develop and operate, directly or indirectly through joint venture arrangements, commercial real estate consisting primarily of single-tenant and multi-tenant retail properties. We commenced our principal operations on June 30, 2005, when we met the required minimum of $2.0 million in our Offering and issued 80 initial Units. We closed the offering on October 31, 2006 when we had received approximately $71.1 million from the sale of 2,833 Units. We invested substantially all of the net proceeds of the Offering in real properties.

We issued Units in the Offering in reliance upon exemptions from the registration requirements of the Securities Act and state securities laws. As a result, our Limited Partners may not transfer the Units except pursuant to an effective registration statement or pursuant to an exemption from registration. The Units are not currently listed on a securities exchange, and there currently is no established public trading market for the Units. We do not intend to list the Units on a securities exchange in the future.

Our General Partner is a Texas corporation and, prior to February 18, 2015, was a wholly-owned subsidiary of AmREIT, formerly a SEC reporting, Maryland corporation that had a class of securities listed on the NYSE and that had elected to be taxed as a REIT. Effective February 18, 2015, Edens became the parent company of our General Partner when AmREIT merged with and into Saturn Subsidiary, LLC (an indirect, wholly-owned subsidiary of Edens, “Saturn”) with Saturn being the surviving entity after Edens acquired all of the outstanding common stock of AmREIT for $26.55 per share in an all-cash transaction, without interest and less any applicable withholding taxes.

Our General Partner has the exclusive right to manage our business and affairs on a day-to-day basis pursuant to our limited partnership agreement. The Limited Partners have the right to remove and replace our General Partner, with or without cause, by a vote of the Limited Partners owning a majority of the outstanding Units (excluding any Units held by our General Partner). Our General Partner is responsible for all of our investment decisions, including decisions relating to the properties to be developed, the method and timing of financing or refinancing the properties, the selection of tenants, the terms of the leases, the method and timing of the sale of the properties and the reinvestment of net sales proceeds. Our General Partner invested $1,000 in us in exchange for its general partner interest and invested $800,000 in us in exchange for 32 Units. Our General Partner utilizes the services of Edens and its affiliates in performing its duties under our limited partnership agreement. Prior to the AmREIT acquisition, these services were performed by AmREIT and its affiliates.

Our operating period ended on October 31, 2012, and we have entered into our liquidation period. However, an orderly liquidation of all of our properties will likely take years for our General Partner to complete and wind up our operations. Because we have entered into our liquidation period, we will not invest in any new real estate without approval of our limited partners. We do not expect that Edens’ acquisition of AmREIT described above will impact the orderly liquidation of our assets. See further discussion in “Strategic Plan” below.

Economic Conditions and Liquidity

As of December 31, 2014, we have $4.0 million in cash on hand. Our results of operations and valuations of our real estate assets have been negatively impacted by overall economic conditions. Most of our retail properties were purchased prior to 2008 when retail real estate market prices were much higher, and our property valuations were negatively impacted by recession that began in 2008. The United States has experienced recent improvements in the general economy; however, it is difficult to determine if the improvements experienced will continue into the future.

Current strategies and recent transactions that have impacted current and future liquidity include:

• On October 18, 2014, our 5433 Westheimer joint venture modified its mortgage loan as part of its plans to dispose of the property. See Note 4. Among other things, the modification waived prior non-compliance with its debt covenants through October 18, 2014, extended the term to October 2017, extended the interest-only payment terms to October 2015, and modified certain operating covenants. The 5433 Westheimer joint venture does not have adequate cash to fund costs needed to prepare the property for sale, and we expect that it will look to us for additional liquidity in the near term. We expect to provide the necessary funding in the form of a promissory note with repayment upon disposition of the property. As of December 31, 2014, we have advanced our 5433 Westheimer property $312,000 under this promissory note. Based upon current estimates of fair value, sufficient equity exists in the property post-renovation to recover our advances and any future advances to the joint venture. However, we can provide no assurances that we will be able to do so, or under circumstances and timing that allow us to maximize the value of the property.

• On June 25, 2014, we sold our Lantern Lane property to AmREIT for $22.7 million, which resulted in net sales proceeds of approximately $7.4 million after repayment of the mortgage loan secured by the property. We made a distribution of approximately $3.7 million on July 23, 2014 to our Limited Partners, and we retained the balance to fund the anticipated capital activities related to our Casa Linda Shopping Center and our 5433 Westheimer property.

• On June 6, 2014, we modified our Westside Plaza debt agreement. See Note 5. The modification had the effect of deferring $1.3 million of accrued principal and interest payments until maturity. The modified agreement also contains a provision that may result in forgiveness of all or a portion of our outstanding Note B debt obligation upon a sale or refinancing of the property. As part of the modification agreement, we paid $1.2 million, including a principal reduction and increases to escrow accounts, as well as loan modification and legal fees.

• During 2012, we and MIG IV initiated a lease-up strategy at our Casa Linda property (a 50% joint venture between us and MIG IV). As of December 31, 2014, the joint venture had incurred approximately $2.6 million of $3.0 million in planned capital expenditures, including certain tenant build-out and site improvements. The property is secured by a $38.0 million mortgage loan that was refinanced in December 2013 with a four-year, non-recourse loan. The new loan contains a provision that would allow for an additional funding of approximately $4.5 million should we elect to acquire an adjacent property. The mortgage loan matures in December 2017. The mortgage loan bears interest at a variable rate; however, in connection with the refinancing, we and MIG IV entered into an interest rate cap agreement that provides for a maximum rate of 3% per annum.

A significant portion of Houston’s and Dallas’ industry is in oil and gas as well as oilfield services. The price of oil in the recent months has declined to five-year lows and it is unknown when or whether oil prices will increase, and if they increase, how much and for what duration. We are unable to predict the impact, if any, that lower oil prices could have on economies in which our properties are located. However, a prolonged period of depressed oil prices could potentially be adverse to these economies, the profitability of our tenants as well as, ultimately, the value of our properties.

Our continuing short-term liquidity requirements consist primarily of operating expenses and other expenditures associated with our properties, regular debt service requirements and capital expenditures. We anticipate that our primary long-term liquidity requirements will include, but will not be limited to, operating expenses, making scheduled debt service payments, funding renovations, expansions, and other significant capital expenditures for our existing portfolio of properties including those of with our joint ventures. Although no assurance can be given, we believe that we will be able to generate liquidity sufficient to continue to execute our strategic plan.

Strategic Plan

Our operating period ended on October 31, 2012, and we have entered into our liquidation period pursuant to the terms of our partnership agreement. Accordingly, our General Partner has begun in good faith to review market sales opportunities, but attractive sales opportunities may not exist in the near term. As such, an orderly liquidation of our assets and wind-down of our operations may take several years for our General Partner to complete. During the liquidation period, we plan to distribute net proceeds generated from property sales to our Limited Partners. Although our General Partner will pursue sales opportunities that are in the best interest of our Limited Partners, we do not expect that our investors will recover all of their original investment. We do not expect that Edens’ acquisition of AmREIT described above will impact the orderly liquidation of our assets.

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INVESTMENTS IN NON-CONSOLIDATED ENTITIES (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Investment	$ 14,991	$ 16,825
5433 Westheimer Lp (Member)
Ownership	57.50%	57.50%
Investment	2,369	2,726
Amreit Casa Linda Lp (Member)
Ownership	50.00%	50.00%
Investment	2,875	3,104
Woodlake Pointe (Member)
Ownership	30.00%	30.00%
Investment	2,303	3,014
PTC/BSQ Holding Company LLC (Member)
Ownership	20.00%	20.00%
Investment	7,444	7,960
Amreit Woodlake Square Lp (Member)
Ownership		3.00%
Investment		$ 21

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PARTNERS' CAPITAL AND NON-CONTROLLING INTEREST (Details Narrative) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Distributions declared as result of Lantern Lane sale	$ 3,700
Date of distribution	Jul. 23, 2014
First Condition (Member)
Percentage of cumulative distributions to the Limited Partners	99.00%
Percentage of cumulative distributions to the General Partner	1.00%
Percentage of distributions equal to partner's unreturned invested capital	100.00%
Percentage of distributions uncompounded on invested capital	10.00%
Second Condition (Member)
Percentage of cumulative distributions to the Limited Partners	40.00%
Percentage of cumulative distributions to the General Partner	100.00%
Thereafter (Member)
Percentage of cumulative distributions to the Limited Partners	60.00%
Percentage of cumulative distributions to the General Partner	40.00%

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Real estate investments at cost:
Land	$ 4,760	$ 11,089
Buildings	9,723	21,662
Tenant improvements	323	1,350
[us-gaap:RealEstateInvestmentPropertyAtCost]	14,806	34,101
Less accumulated depreciation and amortization	(2,787)	(6,612)
[us-gaap:RealEstateInvestmentPropertyNet]	12,019	27,489
Investment in non-consolidated entities	14,991	16,825
Net real estate investments	27,010	44,314
Cash and cash equivalents	4,044	1,203
Tenant and accounts receivables, net	222	566
Accounts receivable - related party	262	622
Notes receivable	93	106
Notes receivable - related party	312
Deferred costs, net	208	566
Other assets	420	418
TOTAL ASSETS	32,571	47,795
Liabilities:
Notes payable	8,980	24,587
Notes payable - related party		267
Accounts payable and other liabilities	649	994
Accounts payable - related party	215	24
Security deposits	68	132
TOTAL LIABILITIES	9,912	26,004
Partners' capital:
General partner
Limited partners, 2,833 Units outstanding at December 31, 2014 and 2013	22,659	21,791
TOTAL PARTNERS' CAPITAL	22,659	21,791
TOTAL LIABILITIES AND PARTNERS' CAPITAL	$ 32,571	$ 47,795

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Consolidated Statement of Partners' Capital (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Stockholders' Equity [Abstract]
Curative Allocations Adjustment	$ (46)	$ 13	$ 17
Cumulative curative allocation adjustment	$ 354

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NOTES PAYABLE (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Outstanding debt	$ 8,980	$ 24,587
Westside Plaza - Note A (Member)
Outstanding debt	8,980	9,587
Lantern Lane - Note (Member)
Outstanding debt		$ 15,000

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INVESTMENTS IN NON-CONSOLIDATED ENTITIES (Tables)

12 Months Ended

Dec. 31, 2014

Equity Method Investments and Joint Ventures [Abstract]

Summary of investment balances

Our investment balances as reported on our Consolidated Balance Sheets are as follows (in thousands):

Investment	Ownership			2014		2013
PTC/BSQ		20	%	$	7,444	$	7,960
Casa Linda		50	%		2,875		3,104
Woodlake Pointe		30	%		2,303		3,014
5433 Westheimer		57.5	%		2,369		2,726
Woodlake Square		3	%		-		21
Total				$	14,991	$	16,825

Schedule of combined condensed financial information for non-consolidated entities

We report our investments in these entities using the equity method of accounting due to our ability to exercise significant influence over them. Combined condensed financial information for our non-consolidated entities (at 100%) is summarized as of December 31, 2014 and 2013, and for the years ended December 31, 2014, 2013 and 2012 as follows:

	As of December 31,
Combined balance sheets (in thousands)	2014		2013
Assets
Property, net	$	145,653	$	148,774
Cash		5,605		4,806
Other assets		9,806		10,726
Total assets	$	161,064	$	164,306
Liabilities and partners’ capital
Notes payable	$	102,524	$	100,286
Other liabilities		9,102		8,441
Partners’ capital		49,438		55,579
Total liabilities and partners’ capital	$	161,064	$	164,306
MIG III share of net assets	$	14,991	$	16,825

	For the year ended December 31,
Combined statements of operations (in thousands)	2014			2013			2012
Revenues
Total revenues	$	17,023		$	15,996		$	15,270
Expenses
Depreciation and amortization		6,383			6,004			5,788
Interest		3,847			4,241			4,250
Other		9,200			4,891			7,475
Total expenses	$	19,430		$	15,136		$	17,513
Net income (loss)	$	(2,407	)	$	860		$	(2,243	)
MIG III share of net income (loss)	$	(1,094	)	$	(295	)	$	(1,325	)

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NOTES PAYABLE (Details 1) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
2015	$ 8,980
Total	8,980
Loan Maturities
2015	8,980
Total	$ 8,980

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CONCENTRATIONS (Tables)

12 Months Ended

Dec. 31, 2014

Risks and Uncertainties [Abstract]

Schedule of Base Rents Generated By Top Five Tenants

Following are the base rents generated by our top five tenants during the years ended December 31, 2014, 2013 and 2012 (in thousands):

	For the year ended December 31,
Tenant	2014		2013		2012
Trend Mall	$	381	$	379	$	379
Fadis Mediterranean Delight		141		141		142
Potbelly Sandwich Works		122		122		122
Cricket Communications		76		76		65
Bless Beauty		64		64		41
Totals	$	784	$	782	$	749

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Cash flows from operating activities:
Net income (loss), including non-controlling interest	$ 4,582	[1]	$ (1,257)	[1]	$ (1,674)	[1]
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Gain on sale of real estate	(6,781)
Gain on extinguishment of debt					(1,533)
Equity in losses from non-consolidated entities	1,094		295		1,325
Depreciation and amortization	837		1,176		1,394
Bad debt (recovery) expense			(63)		(32)
(Increase) decrease in tenant and accounts receivables	162		(58)		(194)
Decrease (increase) in accounts receivable - related party	407		239		(388)
Decrease (increase) in deferred costs	32				(351)
Decrease (increase) in other assets	(311)		55		256
Increase (decrease) in accounts payable and other liabilities	(555)		342		(15)
Increase in accounts payable - related party	437		348		1,075
Increase (Decrease) in security deposits			5		(17)
Net cash provided by (used in) operating activities	(96)		1,082		(154)
Cash flows from investing activities:
Improvements to real estate	(69)		(369)		(537)
Proceeds from property sale	22,700
Payments received on notes receivable	13		14		3
Advances to related party	(348)		(391)
Investments in and advances to non-consolidated entities			(913)		(73)
Distributions from non-consolidated entities	797		4,654		700
Net cash provided by investing activities	23,093		2,995		93
Cash flows from financing activities:
Proceeds from notes payable					2,200
Payments on notes payable	(15,607)		(172)		(148)
Proceeds from notes payable - related party					501
Payments on notes payable - related party	(549)		(5,872)		(1,000)
Loan modification costs	(266)				(137)
Distributions paid	(3,734)
Net cash provided by (used in) financing activities	(20,156)		(6,044)		1,416
Net increase (decrease) in cash and cash equivalents	2,841		(1,967)		1,355
Cash and cash equivalents, beginning of year	1,203		3,170		1,815
Cash and cash equivalents, end of year	4,044		1,203		3,170
Supplemental schedule of cash flow information:
Cash paid during the period for interest	702		1,017		894
Cash paid during the period for taxes	20		23		91
Supplemental schedule of noncash investing and financing activities:
Reclassification from accounts payable - related party to notes payable - related party	282		517		1,139
Property delivered as settlement of debt					9,628
Construction fees included in accounts payable	37		167		115
Reclass from tenant and accounts receivable to notes receivable			$ 17		$ 106

[1] The allocation of net income (loss) attributable to Partners includes a curative allocation to decrease the General Partner capital account by $46 for the year ended December 31, 2014 and increase the General Partner capital account by $13 and $17 for the years ended December 31, 2013 and 2012, respectively. The cumulative curative allocation since inception of the Partnership is $354. The Partnership Agreement provides that no Partner shall be required to fund a deficit balance in their capital account.

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Consolidated Balance Sheets (Parenthetical)	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Limited partners, units outstanding	2,833	2,833

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

10. COMMITMENTS AND CONTINGENCIES

Litigation - In the ordinary course of business; we may become subject to litigation or claims. There are no material pending legal proceedings known to be contemplated against us.

Environmental matters - In connection with the ownership and operation of real estate, we may be potentially liable for costs and damages related to environmental matters. In particular, we are subject to numerous environmental laws and regulations as they apply to real estate pertaining to chemicals used by the dry cleaning industry, the existence of asbestos in older shopping centers, and underground petroleum storage tanks. We have not been notified by any governmental authority of any non-compliance, liability or other claim.

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Document And Entity Information	12 Months Ended
	Dec. 31, 2014	Mar. 30, 2015
Document And Entity Information
Entity Registrant Name	AmREIT Monthly Income & Growth Fund III Ltd
Entity Central Index Key	0001330466
Current Fiscal Year End Date	--12-31
Document Period End Date	Dec. 31, 2014
Document Type	10-K
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Amendment Flag	false
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2014
Entity Common Stock, Shares Outstanding		2,833

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Schedule III - Consolidated Real Estate Owned and Accumulated Depreciation

12 Months Ended

Dec. 31, 2014

SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]

Schedule III - Consolidated Real Estate Owned And Accumulated Depreciation

AmREIT MONTHLY INCOME & GROWTH FUND III, LTD. AND SUBSIDIARIES

SCHEDULE III - Consolidated Real Estate Owned and Accumulated Depreciation

For the year ended December 31, 2014

	Initial Cost									Total Cost
							Cost Capitalized
Property	Building and						Subsequent to			Building and									Accumulated				Date
Description	Improvements			Land			Acquisition			Improvements			Land			Total			Depreciation				Acquired	Encumbrances
Westside Plaza		$	8,631,610		$	4,750,000		$	1,424,503		$	10,046,510		$	4,759,603		$	14,806,113		$	(2,786,757	)	9/30/2005		$	8,980,273

Activity within real estate and accumulated depreciation during the three years ended December 31, 2014, 2013 and 2012 is as follows:

				Accumulated
	Cost			Depreciation
Balance at December 31, 2011	$	44,738,309		$	6,977,583
Acquisitions / additions		516,632			-
Disposals		(11,465,558	)		(2,176,682	)
Depreciation expense		-			931,539
Balance at December 31, 2012	$	33,789,383		$	5,732,440
Acquisitions / additions		311,911			-
Depreciation expense		-			879,244
Balance at December 31, 2013	$	34,101,294		$	6,611,684
Acquisitions / additions		54,952			-
Disposals		(19,350,133	)		(4,420,236	)
Depreciation expense		-			595,309
Balance at December 31, 2014	$	14,806,113		$	2,786,757

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Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Revenues:
Rental income from operating leases	$ 1,272		$ 1,207		$ 1,146
Total revenues	1,272		1,207		1,146
Expenses:
General and administrative	88		105		123
General and administrative - related party	331		380		390
Asset management fees - related party	355		235		235
Property expense	415		341		342
Property management fees - related party	52		48		47
Legal and professional	287		253		266
Depreciation and amortization	353		356		363
Total operating expenses	1,881		1,718		1,766
Operating loss	(609)		(511)		(620)
Other income (expense):
Interest and other income	5		2		5
Interest expense	(665)		(738)		(955)
Loss from non-consolidated entities	(1,094)		(295)		(1,325)
State income tax benefit			7		9
Total other expense,net	(1,754)		(1,024)		(2,266)
Loss from continuing operations	(2,363)		(1,535)		(2,886)
Income (loss) from real estate operations	164		278		(321)
Gain on debt extinguishment					1,533
Gain on sale of real estate	6,781
Income from discontinued operations	6,945		278		1,212
Net income (loss) attributable to partners	4,582	[1]	(1,257)	[1]	(1,674)	[1]
Equity portion of change in fair value of derivative held by non-consolidated entity	20		(55)
Net comprehensive income (loss)	$ 4,602		$ (1,312)		$ (1,674)
Net income (loss) per Unit
Loss from continuing operations	$ (834.1)		$ (541.89)		$ (1,018.58)
Income from discontinued operations	$ 2,451.47		$ 98.19		$ 427.69
Net income (loss) per Unit	$ 1,617.37		$ (443.7)		$ (590.89)
Weighted average Units outstanding	2,833		2,833		2,833

[1] The allocation of net income (loss) attributable to Partners includes a curative allocation to decrease the General Partner capital account by $46 for the year ended December 31, 2014 and increase the General Partner capital account by $13 and $17 for the years ended December 31, 2013 and 2012, respectively. The cumulative curative allocation since inception of the Partnership is $354. The Partnership Agreement provides that no Partner shall be required to fund a deficit balance in their capital account.

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NOTES PAYABLE

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

NOTES PAYABLE

5. NOTES PAYABLE

Our outstanding debt due to unrelated, third parties as of December 31, 2014 and 2013, was as follows (in thousands):

Notes payable	2014		2013
Lantern Lane	$	-	$	15,000
Westside Plaza		8,980		9,587
Total	$	8,980	$	24,587

During June 2014, the Lantern Lane note payable was repaid in connection with the sale of the property. See Note 3.

The Westside Plaza mortgage loan is secured by our real estate property. As of December 31, 2014, its interest rate was 5.62%, and matures in July 2015. On June 6, 2014, we modified the Westside Plaza debt. We made a payment of approximately $1.2 million, which included a $424,000 principal reduction on the Note A balance, a $357,000 payment of principal and interest that was two months in arrears, a $100,000 loan modification fee, $166,000 of escrows related to property taxes, insurance, and anticipated future leasing costs escrow accounts, and $166,000 in other closing and legal fees.

Under the modified agreement, Note A payments are interest-only at 5.62% and Note B payments are deferred with no interest due until the debt is refinanced or the property is sold (a “capital event”). Upon the occurrence of a capital event, we and the lender will share evenly in any excess proceeds until Note B principal is repaid, after which, we would receive all remaining proceeds. If the proceeds received after a capital event are not sufficient to repay any or all of Note B, the unpaid amount will be forgiven.

We also serve as joint and several guarantors of up to 25% of the $8.2 million mortgage loan held by our 5433 Westheimer joint venture, of which we own 57.5%. The debt matures in 2017. See Note 4. While we serve as guarantor on this debt, we do not believe that we would be required to perform under the guarantee as we believe the fair value of the property exceeds the amount of the loan, and therefore we believe that our potential exposure is limited to our investment balance.

As of December 31, 2014, scheduled principal repayments on notes payable were as follows (in thousands):

Scheduled payments by year	Principal		Loan maturities		Total payments
2015	$	-	$	8,980	$	8,980
Total	$	-	$	8,980	$	8,980

Notes Payable – Related Party – As of December 31, 2014 and 2013, our notes payable – related party were $0 and $267,000, respectively.

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INVESTMENTS IN NON-CONSOLIDATED ENTITIES

12 Months Ended

Dec. 31, 2014

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS IN NON-CONSOLIDATED ENTITIES

4. INVESTMENTS IN NON-CONSOLIDATED ENTITIES

As of December 31, 2014, we have investments in four entities, 5433 Westheimer, Casa Linda, Woodlake Pointe, and PTC/BSQ Holding Company LLC, through which we owned an interest in six properties that are accounted for using the equity method of accounting due to our ability to exercise significant influence over them. Our investment balances as reported on our Consolidated Balance Sheets are as follows (in thousands):

Investment	Ownership			2014		2013
PTC/BSQ		20	%	$	7,444	$	7,960
Casa Linda		50	%		2,875		3,104
Woodlake Pointe		30	%		2,303		3,014
5433 Westheimer		57.5	%		2,369		2,726
Woodlake Square		3	%		-		21
Total				$	14,991	$	16,825

PTC/BSQ - We own a 20% interest in PTC/BSQ Holding Company LLC, which owns three multi-tenant retail properties located in Plano, Texas with a combined GLA of 442,072 square feet. The remaining 80% is owned by an unaffiliated third party. We initiated a redevelopment in January 2012 which was substantially completed in the fourth quarter of 2013. As of December 31, 2014, approximately $11.6 million in redevelopment costs have been incurred out of a total expected cost of $12.4 million, including tenant improvements and leasing costs. Our PTC/BSQ joint venture refinanced its debt on June 28, 2013, increasing the total debt from $44.4 million to $54.0 million with an additional $4.5 million available for future capital improvements. The loan has a three-year maturity with two one-year extension options. During 2013, we received a distribution from our PTC/BSQ joint venture in the amount of $1.9 million and used the proceeds to repaid approximately $1.4 million of notes payable-related party.

PTC/BSQ Holding Company LLC has an interest rate swap with a notional amount of $54.0 million, effectively fixing the interest rate on this debt at 2.51% in order to manage the volatility inherent in a variable-rate mortgage. The interest rate swap was designated as a hedge for financial reporting purposes. Changes in fair value of derivatives that qualify as cash flow hedges are recognized in other comprehensive income. For the year ended December 31, 2014, our portion of the increase in fair value totaled $20,000. For the year ended 2013, our portion of the decrease in fair value totaled $55,000 and is recorded as “equity portion of change in fair value of derivative held by non-consolidated entity” on our Consolidated Statements of Operations and Comprehensive Income (Loss).

Casa Linda - We own a 50% interest in AmREIT Casa Linda, LP, which owns a 324,569 square foot retail shopping center located in Dallas, Texas. The remaining 50% is owned by MIG IV, an affiliate of our General Partner. The property was purchased from an unaffiliated third-party. Albertson’s is the largest tenant, occupying 59,561 square feet with a lease scheduled to expire in July 2016. Additional tenants include Petco, Starbucks, Wells Fargo, Chili’s, Pei Wei, Just Fitness 4 U and Supercuts. The property was originally built between 1946 and 1949.

During 2012, we and MIG IV initiated a lease-up strategy at our Casa Linda property (a 50% joint venture between us and MIG IV). As of December 31, 2014, the joint venture had incurred approximately $2.6 million of the $3.0 million in planned capital expenditures, including certain tenant build-out and site improvements. The property is secured by a $38.0 million mortgage loan that was refinanced in December 2013 with a four-year, non-recourse loan. The new loan contains a provision that would allow for an additional funding of approximately $4.5 million should the joint venture elect to acquire an adjacent property. The mortgage loan matures in December 2017. The mortgage loan bears interest at a variable rate; however, in connection with the refinancing, we and MIG IV entered into an interest rate cap agreement that provides for a maximum rate of 3% per annum. The interest rate cap was not designated as a hedge for financial reporting purposes, and our portion of the change in fair value is recognized in income (loss) from non-consolidated entities. For the years ended December 31, 2014 and 2013, our portion of the change in fair value was a $51,000 decrease and an $11,000 increase, respectively, and is included in loss from non-consolidated entities on our Consolidated Statements of Operations and Comprehensive Income (Loss).

During 2013, Casa Linda recorded a one-time gain on the favorable settlement of an environmental liability of $224,000, our portion of which was $112,000.

Woodlake Pointe - We own a 30% interest in AmREIT Westheimer Gessner, LP, which owns Woodlake Pointe, a multi-tenant retail property located in Houston, Texas with a combined GLA of 82,120 square feet. The remaining 70% is owned by affiliated AmREIT entities, MIG IV (60%) and ARIC (10%).

This property is under redevelopment, however, we have experienced challenges in executing a long term lease with a tenant to redevelop the property. While we continue to pursue redevelopment opportunities that will optimize the property’s value, we can provide no assurance that such opportunities will result in a recovery of the property’s book value, or that, if executed, such opportunities would provide an increase in value that would warrant the additional investment, risk and hold period. Accordingly, we reviewed this property for impairment as of December 31, 2014. The property was appraised at approximately $8.2 million. In arriving at our fair value estimate we considered numerous factors. We estimated fair value utilizing both comparable sales information of similar properties assuming a “sell as is” scenario and a discounted cash flow model assuming that the property entered into a long term lease and redeveloped the property. The fair value determined under each of these scenarios was approximately $8.2 million. Accordingly, we recorded an impairment at the property of $2.0 million as of December 31, 2014. $600,000 of which, represents our 30% portion and is included in our loss from non-consolidated entities on our Consolidated Statements of Operations and Comprehensive Income (Loss).

During 2011, we signed a lease with a large national fitness tenant, and we completed construction of a 45,000 square foot building on the property during 2012 for a total redevelopment costs of $6.7 million. On September 30, 2013, our Woodlake Pointe joint venture sold the 45,000 square foot single-tenant building and land parcel at our Woodlake Pointe property for $12.0 million to an unrelated third party. The land and building were secured by a $6.6 million loan that was repaid in full with proceeds from the sale. We received a distribution of $1.5 million on October 1, 2013 in connection with this sale. We subsequently repaid approximately $650,000 of notes payable - related party and retained the remainder of the proceeds as cash on hand.

5433 Westheimer – We own a 57.5% interest in 5433 Westheimer, LP, which owns an office building with 133,881 square feet of GLA and formerly owned a 152-room hotel in Houston, Texas. The remaining 42.5% is owned by a third party, joint venture partner. The property is accounted for under the equity method of accounting as we and our joint venture partner share equally in decision-making rights. We completed an initial redevelopment of the office building and construction of a 152-room hotel in October 2009 at a total cost of approximately $31.7 million, and we mortgaged our interest in this property with a $32.9 million, three-year variable-rate loan with a third party lender. The debt matured unpaid on December 31, 2011. On April 10, 2012, 5433 Westheimer, LP sold the 152-room hotel for $28.7 million, and the net proceeds received were used to pay down the existing loan balance to $3.8 million. 5433 Westheimer, LP continues to own and operate the office building.

On October 19, 2012, 5433 Westheimer, LP refinanced this debt with a five-year term loan in the amount of $8.7 million, which includes amounts to be funded in the form of construction draws for the redevelopment of the property. We and our joint venture partner are joint and several guarantors of 25% of this debt. On October 18, 2014, our 5433 Westheimer joint venture modified its mortgage loan. Among other things, the modification waived prior non-compliance with its debt covenants through October 18, 2014, modified ongoing debt service operating covenants, extended the term to October 2017 and extended the interest-only payment terms to October 2015. As of December 31, 2014, this loan had an outstanding balance of $8.2 million. While we serve as guarantor on this debt, we do not believe that we would be required to perform under the guarantee as we believe the fair value of the property exceeds the amount of the loan.

We and our joint venture partner initiated a redevelopment plan, primarily in the form of building and site improvements, which was completed as we made the property ready for sale. Redevelopment costs totaled approximately $6.6 million as of December 31, 2014, out of a total expected cost of approximately $8.2 million (including lease-up costs). We and our joint venture partner believe that recent market improvements have made disposition of this property attractive and have begun to market the property for sale.

During 2014, 5433 Westheimer did not have adequate cash to fund the renovation costs needed to ready the property for sale or pay its property taxes due in January 2015. Additionally, the property owed ARIC and us approximately $400,000 in deferred asset management fees and margin taxes. As such, we and the joint venture entered into an advancing promissory note with 10% interest to fund up to approximately $1.5 million to:

• complete the renovations to ready the property for sale,

• fund property taxes due in January 2015,

• roll in the accounts payable owed to ARIC and us, and

• fund remaining working capital needs until the property is sold.

As of December 31, 2014, we have advanced our 5433 Westheimer property $312,000 under this promissory note. The promissory note will be due upon sale of the property.

Based upon estimates of fair value, sufficient equity exists in the property post-renovation to recover our current investment and any current and future loans to the joint venture. However, we can provide no assurances that we will be able to do so, or under circumstances and timing that allow us to maximize the value of the property; thus, all or a portion of our investment of $2.4 million is subject to risk.

Woodlake Square - We previously owned a 3% interest in the Woodlake Square property through a joint venture arrangement with affiliates of our General Partner, MIG IV (6% ownership interest), ARIC (1% ownership interest) and an unaffiliated third party institutional partner (the remaining 90% ownership interest). On September 18, 2013, VIF II/AmREIT Woodlake L.P. sold Woodlake Square to AmREIT for $41.6 million based on arms-length negotiations between AmREIT and our third party institutional partner that owned a 90% interest in the property. Our remaining interest at December 31, 2013 represents undistributed sales proceeds.

We report our investments in these entities using the equity method of accounting due to our ability to exercise significant influence over them. Combined condensed financial information for our non-consolidated entities (at 100%) is summarized as of December 31, 2014 and 2013, and for the years ended December 31, 2014, 2013 and 2012 as follows:

	As of December 31,
Combined balance sheets (in thousands)	2014		2013
Assets
Property, net	$	145,653	$	148,774
Cash		5,605		4,806
Other assets		9,806		10,726
Total assets	$	161,064	$	164,306
Liabilities and partners’ capital
Notes payable	$	102,524	$	100,286
Other liabilities		9,102		8,441
Partners’ capital		49,438		55,579
Total liabilities and partners’ capital	$	161,064	$	164,306
MIG III share of net assets	$	14,991	$	16,825

	For the year ended December 31,
Combined statements of operations (in thousands)	2014			2013			2012
Revenues
Total revenues	$	17,023		$	15,996		$	15,270
Expenses
Depreciation and amortization		6,383			6,004			5,788
Interest		3,847			4,241			4,250
Other		9,200			4,891			7,475
Total expenses	$	19,430		$	15,136		$	17,513
Net income (loss)	$	(2,407	)	$	860		$	(2,243	)
MIG III share of net income (loss)	$	(1,094	)	$	(295	)	$	(1,325	)

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NOTES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Schedule of outstanding debt

Our outstanding debt due to unrelated, third parties as of December 31, 2014 and 2013, was as follows (in thousands):

Notes payable	2014		2013
Lantern Lane	$	-	$	15,000
Westside Plaza		8,980		9,587
Total	$	8,980	$	24,587

Schedule of principal repayments on notes payable

As of December 31, 2014, scheduled principal repayments on notes payable were as follows (in thousands):

Scheduled payments by year	Principal		Loan maturities		Total payments
2015	$	-	$	8,980	$	8,980
Total	$	-	$	8,980	$	8,980

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Our financial records are maintained on the accrual basis of accounting whereby revenues are recognized when earned and expenses are recorded when incurred. The consolidated financial statements include our accounts as well as the accounts of any wholly- or majority-owned subsidiaries in which we have a controlling financial interest. Investments in joint ventures and partnerships where we have the ability to exercise significant influence but do not exercise financial and operating control are accounted for using the equity method (see Note 4). The significant accounting policies of our non-consolidated entities are consistent with those of our subsidiaries in which we have a controlling financial interest. As of December 31, 2014, we do not have any interests in variable interest entities. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash And Cash Equivalents

Cash and Cash Equivalents

We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of demand deposits at commercial banks and money market funds.

Revenue Recognition

Revenue Recognition

Rental income from operating leases – We lease space to tenants under agreements with varying terms. Our leases are accounted for as operating leases, and, although certain leases of the properties provide for tenant occupancy during periods for which no rent is due and/or for increases or decreases in the minimum lease payments over the terms of the leases, revenue is recognized on a straight-line basis over the terms of the individual leases. Revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, possession or control occurs on the lease commencement date. In cases where significant tenant improvements are made prior to lease commencement, the leased asset is considered to be the finished space, and revenue recognition therefore begins when the improvements are substantially complete. Revenue from tenant reimbursements of taxes, maintenance expenses and insurance is recognized in the period the related expense is recorded. Accrued rents are included in tenant and accounts receivable, net.

Gains on Sale of Real Estate

Gains on Sale of Real Estate

Gains on sales of real estate are not recognized under the full accrual method until certain criteria are met. Gains relating to transactions that do not meet the criteria for full accrual method of accounting are deferred and recognized when the full accrual method of accounting criteria are met or by using the installment or deposit methods of profit recognition, as appropriate under the circumstances.

Receivables And Allowance For Uncollectible Accounts

Receivables and Allowance for Uncollectible Accounts

Tenant and Accounts Receivable, Net - Included in tenant receivables are base rents, tenant reimbursements and adjustments related to recording rents on a straight-line basis. An allowance for the uncollectible portion of accrued rents and accounts receivable is determined based upon customer credit-worthiness (including expected recovery of our claim with respect to any tenants in bankruptcy), historical bad debt levels and current economic trends. Bad debt expenses and any related recoveries are included in property expense. As of December 31, 2014 and 2013, our allowance for uncollectible accounts related to our tenant receivables was $0.

Accounts Receivable – Related Party - Included in accounts receivable related party are short-term cash advances provided to certain of our affiliated investment entities primarily for their redevelopment needs. These cash advances are due upon demand.

Redevelopment Properties

Redevelopment Properties

Expenditures related to the redevelopment of real estate are capitalized as part of construction in progress, which includes carrying charges, primarily interest, real estate taxes and loan acquisition costs, and direct and indirect redevelopment costs related to buildings under construction. The capitalization of such costs ceases at the earlier of the date of completion of major construction or when the property, or any completed portion, becomes available for occupancy. We capitalize costs associated with pending acquisitions of raw land as incurred and expense such costs if and when the acquisition of the property becomes no longer probable.

Acquired Properties And Acquired Intangibles

Acquired Properties and Acquired Intangibles

We account for acquisitions of operating real properties as business acquisitions, as we believe most operating real estate meets the definition of a “business” under GAAP. Accordingly, we allocate the purchase price of each acquired property to land, building and improvements, identifiable intangible assets and to the acquired liabilities based on their respective fair values. Identifiable intangibles include amounts allocated to acquire above- and below-market leases, the value of in-place leases and customer relationship value, if any. Intangibles related to in-place lease value and above and below-market leases are recorded as acquired lease intangibles and are amortized as an adjustment to rental revenue or amortization expense, as appropriate, over the remaining terms of the underlying leases. Below-market leases include fixed-rate renewal periods where we believe the renewal is reasonably assured. Premiums or discounts on debt are amortized to interest expense over the remaining term of such debt. Costs related to acquiring operating properties are expensed as incurred.

Depreciation

Depreciation

Depreciation is computed using the straight-line method over an estimated useful life of up to 39 years for buildings and site improvements and over the lesser of the useful life or the respective lease term for tenant improvements. We re-evaluate the useful lives of our buildings and improvements as warranted by changing conditions at our properties. As part of this re-evaluation, we may also consider whether such changing conditions indicate a potential impairment, and we perform an impairment analysis, as necessary, at the property level. In the case of a property redevelopment, we reassess the useful lives of specific buildings or other improvements to be demolished as part of that redevelopment once the redevelopment is probable of occurring.

Impairment

Impairment

We review our properties for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets, including acquired lease intangibles and accrued rental income, may not be recoverable through operations. We determine whether an impairment in value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), including the residual value of the property, with the carrying value of the individual property. If impairment is indicated, a loss will be recorded for the amount by which the carrying value of the asset exceeds its fair value. Both the estimated undiscounted cash flow analysis and fair value determination are based upon various factors that require complex and subjective judgments to be made by management. For our multi-building retail centers, we consider the entire retail center as the asset group for purposes of our impairment analysis. We review our investments in non-consolidated entities for impairment based on a similar review of the properties held by the investee entity.

Our Woodlake Point recorded an impairment of $2.0 million as of December 31, 2014. $600,000 of which, represents our 30% portion and is included in our loss from non-consolidated entities on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 4.

No impairment charges were recognized for the years ended December 31, 2013 and 2012.

Deferred Costs

Deferred Costs

Deferred costs include deferred leasing costs and loan acquisition costs, net of amortization. Loan acquisition costs are incurred in obtaining financing and are amortized to interest expense over the term of the debt agreements using a method that approximates the effective interest method. Deferred leasing costs consist of external commissions associated with leasing our properties and are amortized to depreciation and amortization expense on a straight-line basis over the lease term. If a lease is terminated early, or a loan is paid in full prior to maturity, the remaining deferred costs will be written off. Accumulated amortization related to loan acquisition costs as of December 31, 2014 and 2013, totaled $269,000 and $90,000, respectively. Accumulated amortization related to leasing costs as of December 31, 2014 and 2013, totaled $191,000 and $93,000, respectively.

Income Taxes

Income Taxes

No provision for U.S. federal income taxes is included in the accompanying consolidated financial statements. As a partnership, we are not subject to federal income tax, and the federal tax effect of our activities is passed through to our partners.We are, however, subject to taxation under the Texas Margin Tax, which is computed by applying the applicable tax rate (1% for the Partnership) to the profit margin, which, generally, will be determined for us as total revenue less a 30% standard deduction. For the years ended December 31, 2014, 2013 and 2012, we recorded a state income tax benefit of $0, $7,000 and $9,000, respectively.

Interest

Interest

Interest is charged to interest expense as it accrues. No interest has been capitalized on any consolidated properties since inception of the Partnership.

Segments

Segments

We determined that we have one reportable segment with activities related to investing in real estate. Our investments in real estate generate rental revenue and other income through the leasing of multi-tenant retail properties, which comprised 100% of our total consolidated revenues for all periods presented. We evaluate operating performance on an individual property level. However, as all of our properties have similar economic characteristics, tenants, products and services, our properties have been aggregated into one reportable segment.

Operating Leases

Operating Leases

Our operating leases generally range from two to twenty-five years and generally include one or more five-year renewal options. A summary of minimum future base rentals to be received, exclusive of any renewals, under noncancelable operating leases in existence as of December 31, 2014, is as follows (in thousands):

	Minimum
	future base
Year	rentals
2015	$	869
2016		668
2017		168
2018		110
2019		46
Thereafter		-
	$	1,861

Future minimum rental revenue excludes amounts that may be received from tenants for reimbursements of operating costs, real estate taxes and insurance. Expense reimbursements recognized as revenue totaled $752,000, $1.0 million and $882,000 for the years ended December 31, 2014, 2013 and 2012, respectively.

New Accounting Pronouncements

New Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09 “Topic 605,” “Revenue from Contracts with Customers” that will supersede the existing revenue recognition guidance under GAAP. The accounting update states that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. It also establishes a five-step model that requires companies to exercise judgment when considering the terms of a contract and all relevant facts and circumstances. It is effective for annual reporting periods beginning after December 15, 2016. This standard does not supersede current accounting literature for lease contracts. We are currently evaluating this accounting update and our existing revenue recognition policies for contracts other than our lease contracts with tenants to determine what impact, if any, this new guidance could have on our consolidated financial statements.

In April 2014, the FASB issued ASU No. 2014-08 “Topic 946,” “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” Under the update, discontinued operations as defined as either 1) A component of and entity (or group of components) that (i) has been disposed of or meets the criteria to be classified as held-for-sale and (ii) represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, or 2) is a business or nonprofit activity that on acquisition, meets the criteria to be classified as held-for-sale. The accounting update is effective on a prospective basis for disposals or assets meeting the definition as held-for-sale for accounting periods beginning on or after December 15, 2014. Early application is permitted, but only for those disposals that have not been reported in previously issued financial statements. We did not elect to early adopt this update. The results of operations from our Lantern Lane property sold on June 25, 2014 are shown as discontinued operations in all periods presented. See Note 3.

Subsequent Events

Subsequent Events

On February 18, 2015, all of the outstanding common stock of AmREIT was acquired by Edens. See Note 1.

We identified no additional subsequent events as of the date of this filing that materially impacted our consolidated financial statements.

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PARTNERS' CAPITAL

12 Months Ended

Dec. 31, 2014

Partners' Capital Notes [Abstract]

PARTNERS' CAPITAL

8. PARTNERS’ CAPITAL

Distributions- We made a distribution of approximately $3.7 million to our Limited Partners related to the sale of our Lantern Lane property on July 23, 2014. Otherwise, we have suspended all distribution payments and do not anticipate reinstating distributions until we have stabilized our properties and we generate liquidity that could allow us to re-commence distributions. Once we re-commence distributions, net cash flow, as defined, will be distributed among the limited partners and the General Partner in the following manner:

• first - 99% to the Limited Partners and 1% to the General Partner until such time as the Limited Partners have received cumulative distributions from all sources (including monthly cash distributions during the operating stage of the Partnership) equal to 100% of their unreturned invested capital plus an amount equal to 10% per annum uncompounded on their invested capital;  

• second - 100% to the General Partner until it has received cumulative distributions from all sources (other than with respect to its Units it purchased) in an amount equal to 40% of the net cash flow paid to date to the Limited Partners in excess of their adjusted capital; and

• thereafter - 60% to the Limited Partners and 40% to the General Partner.

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FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

6. FAIR VALUE MEASUREMENTS

GAAP emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. GAAP requires the use of observable market data, when available, in making fair value measurements. Observable inputs are inputs that the market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of ours. When market data inputs are unobservable, we utilize inputs that we believe reflect our best estimate of the assumptions market participants would use in pricing the asset or liability. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. As a basis for considering market participant assumptions in fair value measurements, GAAP establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified that are within Level 3 of the hierarchy). The three levels of inputs used to measure fair value are as follows:

• Level 1 Inputs – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Partnership has the ability to access.

• Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3 Inputs – Unobservable inputs for the asset or liability, which are typically based on the Partnership’s own assumptions, as there is little, if any, related market activity.

Our consolidated financial instruments consist of cash and cash equivalents, tenant and accounts receivable, accounts receivable – related party, notes receivable, notes payable, notes payable – related party, accounts payable – related party, and accounts payable and other liabilities. The carrying values of all of these financial instruments, except for our notes payable, are representative of their fair values due to the short-term nature of the instruments. In determining the fair value of our debt, we determine the appropriate treasury bill rate based on the remaining time to maturity for each of the debt instruments. We then add the appropriate yield spread to the treasury bill rate. The yield spread is a risk premium estimated by investors to account for credit risk involved in debt financing. The spread is typically estimated based on the property type and loan-to-value ratio of the debt instrument. The result is an estimate of the market interest rate a typical investor would expect to receive given the underlying subject asset (property type) and remaining time to maturity.

The fair value of Note A was approximately $8.5 million and classified in Level 2 of the fair value hierarchy as of December 31, 2014. As described in Note 5, Note B does not accrue interest and its payment is dependent upon the occurrence and amount of a capital event. Accordingly, we determined the fair value of Note B to be approximately $590,000, using internal estimates of potential proceeds in the event we were to sell the underlying property in the current market. Because the estimates used to determine fair value are not readily observable, we have classified the fair value of Note B in Level 3 of the fair value hierarchy as of December 31, 2014. As of December 31, 2013, we estimated the fair value of our notes payable was $25.0 million and classified in Level 2 of the fair value hierarchy.

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CONCENTRATIONS

12 Months Ended

Dec. 31, 2014

Risks and Uncertainties [Abstract]

Concentrations

7. CONCENTRATIONS

As of December 31, 2014, Westside Plaza was our sole consolidated property which comprised greater than 10% of our consolidated total assets. As of December 31, 2013, Westside Plaza and Lantern Lane each comprised greater than 10% of our consolidated total assets. Consistent with our strategy of investing in geographic areas that we know well, both properties are located in the Houston metropolitan area. These Houston properties represent 100% of our rental income for the years ended December 31, 2014, 2013 and 2012. Houston is Texas’ largest city and the fourth largest city in the United States.

Following are the base rents generated by our top five tenants during the years ended December 31, 2014, 2013 and 2012 (in thousands):

	For the year ended December 31,
Tenant	2014		2013		2012
Trend Mall	$	381	$	379	$	379
Fadis Mediterranean Delight		141		141		142
Potbelly Sandwich Works		122		122		122
Cricket Communications		76		76		65
Bless Beauty		64		64		41
Totals	$	784	$	782	$	749

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions

9. RELATED PARTY TRANSACTIONS

We have no employees or offices. Additionally, certain of our affiliates receive fees and compensation during the operating stage of the Partnership, including compensation for providing services to us in the areas of asset management, development and acquisitions, property management and leasing, financing, brokerage and administration. We reimburse our General Partner for an allocation of general and administrative costs. The following table summarizes the amount of such compensation incurred by us during the years ended December 31, 2014, 2013 and 2012 (in thousands):

	For the year ended December 31,
Service description & compensation	2014		2013		2012
Asset management fees	$	355	$	235	$	235
Interest expense - related party		5		103		332
Property management fees(1)		95		128		118
Leasing costs		4		44		187
Administrative costs reimbursements		380		380		390
	$	839	$	890	$	1,262

(1) Amounts include discontinued operations.

In addition to the above fees incurred by us, the non-consolidated entities in which we have investments pay property management and leasing fees to one of our affiliated entities. During the years ended December 31, 2014, 2013 and 2012, such fees totaled $1.1 million, $1.2 million, and $1.4 million, respectively (see Note 4).

On June 25, 2014, we sold our Lantern Lane property to AmREIT (see Note 3).

On September 18, 2013, our Woodlake Square joint venture sold the Woodlake Square property to AmREIT (see Note 4).

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NOTES PAYABLE (Details Narrative) (USD $) In Thousands, unless otherwise specified	0 Months Ended	12 Months Ended
	Jun. 06, 2014	Dec. 31, 2014
Westside Plaza Mortgage Loan (Member)
Payment on mortgage loan	$ 1,200
Principal reduction of loan	424
Payment of principal and interest	357
Loan modification fee	100
Payment of escrow amounts	166
Other closing and legal fees of loan modification	166
Westside Plaza - Note A (Member)
Interest rate of fixed-rate debt		5.62%
Maturity date of debt		Jul. 31, 2015
5433 Westheimer Lp (Member)
Guarantor on debt		8,200

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REAL ESTATE DISPOSITIONS AND DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Summary of discontinued operations

A summary of our discontinued operations for the periods presented is detailed below (amounts in thousands):

	For the year ended December 31,
	2014			2013			2012
Revenues:
Rental income from operating leases	$	1,122		$	2,229		$	2,012
Total revenues		1,122			2,229			2,012
Expenses:
General and administrative		25			44			17
Property expense		336			635			694
Property management fees - related		43			80			71
Legal and professional		7			9			100
Depreciation and amortization		315			660			778
Total operating expenses		726			1,428			1,660
Operating income (loss)		396			801			352
Other income (expense):
Interest and other income		-			3			35
Interest expense		(232	)		(526	)		(708	)
Total other expense		(232	)		(523	)		(673	)
Income (loss) from real estate		164			278			(321	)
Gain on debt extinguishment		-			-			1,533
Gain on sale of real estate		6,781			-			-
Income from discontinued operations	$	6,945		$	278		$	1,212

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DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS (Details Narrative) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended			0 Months Ended	12 Months Ended
	Oct. 31, 2006	Jun. 30, 2005	Jun. 25, 2014	Jun. 06, 2014	Dec. 31, 2014	Feb. 18, 2015
Issuance of units	$ 71,100,000	$ 2,000,000
Issuance of units, units	2,833	80
Sale price of common stock						$ 26.55
Lantern Lane (Member)
Proceeds from sale property			22,700
Net proceeds from sale property			7,400
Westside Plaza Mortgage Loan (Member)
Principal repayment, increase to escrow account and fees to modify debt				1,200
Deferral of principal and interest on loan modification				1,300
Future funding available under loan				4,500
Wholly Owned Properties (Member)
Square footage of real estate property					43,000
Number of real estate properties					1
General Partner (Member)
Issuance of units					800,000
Issuance of units, units					32
Investment by general partner					$ 1,000
Noncontrolling Interest (Member)
Square footage of real estate property					985,000
Number of real estate properties					6

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RELATED PARTY TRANSACTIONS (Details Narrative) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]
Property management and leasing fees, paid by non-consolidated entities	$ 1,100,000	$ 1,200,000	$ 1,400,000

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Consolidated Statement of Partners' Capital (USD $) In Thousands		Limited Partners (Member)	AOCI of non-consolidated investment (Member)	Total
Balance, beginning at Dec. 31, 2011		$ 24,777		$ 24,777
Net income (loss) attributable to partners	[1]	(1,674)		(1,674)
Balance, ending at Dec. 31, 2012		23,103		23,103
Net income (loss) attributable to partners	[1]	(1,257)		(1,257)
Equity portion of change in fair value of derivative held by non-consolidated entity			(55)	(55)
Balance, ending at Dec. 31, 2013		21,846	(55)	21,791
Net income (loss) attributable to partners	[1]	4,582		4,582
Distributions		(3,734)		(3,734)
Equity portion of change in fair value of derivative held by non-consolidated entity			20	20
Balance, ending at Dec. 31, 2014		$ 22,694	$ (35)	$ 22,659

[1] The allocation of net income (loss) attributable to Partners includes a curative allocation to decrease the General Partner capital account by $46 for the year ended December 31, 2014 and increase the General Partner capital account by $13 and $17 for the years ended December 31, 2013 and 2012, respectively. The cumulative curative allocation since inception of the Partnership is $354. The Partnership Agreement provides that no Partner shall be required to fund a deficit balance in their capital account.

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REAL ESTATE DISPOSITIONS AND DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

REAL ESTATE DISPOSITIONS AND DISCONTINUED OPERATIONS

3. REAL ESTATE DISPOSITIONS AND DISCONTINUED OPERATIONS

Olmos Creek - Our Olmos Creek mortgage of $11.2 million matured unpaid on November 1, 2011. We entered into a settlement agreement with the new owner of the mortgage and delivered the property to the new owner on February 6, 2012, in exchange for a release of the obligations under the Olmos Creek mortgage. The settlement of the debt resulted in a gain on debt extinguishment of approximately $1.5 million as reported in income (loss) from discontinued operations on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2012.

Lantern Lane - On June 25, 2014, we sold our Lantern Lane property to AmREIT for $22.7 million, which generated net sales proceeds of approximately $7.4 million, net of closing costs and the repayment of the mortgage loan secured by the property. We have presented the operating results of this property as discontinued operations in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) for all periods presented. A summary of our discontinued operations for the periods presented is detailed below (amounts in thousands):

	For the year ended December 31,
	2014			2013			2012
Revenues:
Rental income from operating leases	$	1,122		$	2,229		$	2,012
Total revenues		1,122			2,229			2,012
Expenses:
General and administrative		25			44			17
Property expense		336			635			694
Property management fees - related		43			80			71
Legal and professional		7			9			100
Depreciation and amortization		315			660			778
Total operating expenses		726			1,428			1,660
Operating income (loss)		396			801			352
Other income (expense):
Interest and other income		-			3			35
Interest expense		(232	)		(526	)		(708	)
Total other expense		(232	)		(523	)		(673	)
Income (loss) from real estate		164			278			(321	)
Gain on debt extinguishment		-			-			1,533
Gain on sale of real estate		6,781			-			-
Income from discontinued operations	$	6,945		$	278		$	1,212

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Margin tax rate	1.00%
Standard deduction percentage	30.00%
State income tax benefit	$ 0	$ (7,000)	$ (9,000)
Tenant reimbursement - revenue	$ 752,000	$ 1,000,000	$ 882,000
Building and Site Improvements [Member]
Estimated useful life	39 years

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CONCENTRATIONS (Details Narrative)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Rental Income [Member]
Houston properties	100.00%
Westside Plaza | Assets, Total [Member]
Concentration risk - consolidated total assets	10.00%
Westside Plaza and Latern Lane | Assets, Total [Member]
Concentration risk - consolidated total assets		10.00%

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Schedule of future minimum base rentals to be received

Our operating leases generally range from two to twenty-five years and generally include one or more five-year renewal options. A summary of minimum future base rentals to be received, exclusive of any renewals, under noncancelable operating leases in existence as of December 31, 2014, is as follows (in thousands):

	Minimum
	future base
Year	rentals
2015	$	869
2016		668
2017		168
2018		110
2019		46
Thereafter		-
	$	1,861