Related Party Transactions

9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

In accordance with the terms of the Partnership Agreement, the Partnership is obligated to reimburse the Managing General Partner or its affiliates for certain direct expenses and payroll expenses in connection with managing the Partnership. Payroll expenses are reimbursed at a factor of 1.75 times base salary. For the three and nine month periods ended September 30, 2013, the Partnership paid $19,974 and $78,227, respectively, and $26,987 and $81,152 for the three and nine month periods ended September 30, 2012, respectively, to the Managing General Partner or its affiliates as direct reimbursement of expenses incurred on behalf of the Partnership. In addition, certain employees of the Managing General Partner provided legal and tax accounting services to the Partnership. These costs are reimbursed comparable to third party service charges. For the three and nine month periods ended September 30, 2013, the Partnership paid $23,980 and $90,559, respectively, and $43,388 and $97,276 for the three and nine month periods ended September 30, 2012, respectively, to the Managing General Partner or its affiliates for these services. Such reimbursed expenses are included in the accompanying condensed consolidated statements of operations and accumulated losses as general and administrative expenses.

In accordance with the terms of the Partnership Agreement, the Partnership is obligated to pay the Managing General Partner an annual incentive management fee (“Management Fee”) after all other expenses of the Partnership are paid. The Partnership paid the Managing General Partner a Management Fee of $93,750 for each of the three month periods ended September 30, 2013 and 2012 and $281,250 for each of the nine month periods ended September 30, 2013 and 2012.

In accordance with the terms of the Partnership Agreement, in February 2012, the Managing General Partner was paid a disposition fee of $70,000 related to the sale of Mary Allen West Tower, which was netted against the related gain on disposition of investment in property in 2011.

In addition, in August 2013, the Managing General Partner was paid a disposition fee of $205,000 related to the sale of Northridge Park, which was netted against the related gain on disposition of investment in property.

The disposition fee for both Mary Allen West Tower and Northridge Park was based on 2% of the gross sales price of the property.