Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions [Abstract]

Related Party Transactions

(4) Related Party Transactions

The Corporate General Partner and its affiliates earn fees, principally for property and partnership management and are reimbursed for services rendered to the Partnership, as provided for in the partnership agreement.  A summary of those items follows:

	2011	2010
Property management fees based on a percent-
age (generally 6%) of the rental income	$         11,619	17,530
Reimbursement for cost of services to the
Partnership that include investor relations,
marketing of properties, professional fees,
communications, supplies, accounting,
printing, postage and other items	18,201	28,697
	$         29,820	46,227

In addition to the above, other property specific expenses such as payroll, benefits, etc. are charged to property operations on the Partnership's consolidated statements of operations.  Certain payables to affiliated parties are payable on demand and bear interest at 8% in 2011 and 2010.

Payable to Affiliated Parties

Payable to affiliates amounted to $2,261,921 and $2,035,347 at December 31, 2011 and 2010, respectively.  Of this amount, $1,066,719 is payable to an affiliate under a Memorandum of Understanding Agreement dated December 8, 2006.  Under the terms of this agreement, the Partnership agrees to repay this loan plus interest at a rate of 8% per annum, upon the sale of the remaining building at Commercial Park West, 2327 Englert Drive, which is currently being marketed for sale.  As of December 31, 2011 and 2010, accrued interest from this agreement, in addition to the payables disclosed above, totaled $422,521 and $338,017, respectively.  Total interest expense incurred on amounts owed to affiliated parties for the years ended December 31, 2011 and 2010 was $147,327 and $129,448, respectively.

Property Disposition Fees

According to the terms of the partnership agreement, the general partners are also allowed to collect a property disposition fee upon the sale of acquired properties.  This fee is not to exceed the lesser of 50% of amounts customarily charged in arm's-length transactions by others rendering similar services for comparable properties, or 2.75% of the sales price.  The property disposition fee is subordinate to payments to the limited partners of a cumulative annual return (not compounded) equal to 7% of their average adjusted capital balances and to repayment to the limited partners of an amount equal to their capital contributions.  Since these conditions described above have not been met, no disposition fees have been paid or accrued on properties sold in prior years.

Distributions

J. M. Jayson and Company, Inc. is an affiliated company in which the Individual General Partner is the Chairman, Director, and sole stockholder.  J. M. Jayson and Company, Inc. owned 1,642.3 units of limited partnership interest.