Disposition of Investment Property and Discontinued Operations (Notes)

3 Months Ended

Mar. 31, 2015

Disposal Groups, Including Discontinue Operations Disclosure [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note C – Disposition of Investment Property and Discontinued Operations

On March 31, 2015, the Partnership sold Colony of Kenilworth, its sole investment property, to a third party for a total sales price of $44,200,000. The net proceeds realized by the Partnership were approximately $43,210,000, after payment of closing costs of $987,000. The Partnership recognized a gain of approximately $35,309,000 as a result of the sale.

In connection with the sale, the Partnership repaid the outstanding balances of property loans encumbering the property, totaling approximately $22,530,000. In connection with the loan repayments, the Partnership recognized a loss on extinguishment of debt of approximately $5,373,000, consisting of approximately $5,161,000 of prepayment penalties, as well as the write off of unamortized deferred financing costs.

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, or ASU 2014-08. ASU 2014-08 revised the definition of, and the requirements for reporting, a "discontinued operation." Specifically, ASU 2014-08 revised the reporting requirements to only allow a component of an entity, or group of components of an entity, to be reported in discontinued operations if their disposal represents a “strategic shift that has (or will have) a major effect on an entity’s operations and financial results.”

The Partnership adopted the provisions of ASU 2014-08 during the three months ended March 31, 2015, and the Partnership’s management believes the Partnership’s disposition of its sole investment property meets the criteria of a discontinued operation. Accordingly, the Partnership has presented its results of operations for both the three months ended March 31, 2015 and 2014, all of which relate to the operations of the disposed property, as discontinued operations within the accompanying Statements of Discontinued Operations. Additionally, the Partnership’s assets and liabilities have been reclassified as assets held for sale and liabilities related to assets held for sale.