Note 16 - Acquisition

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Business Combination Disclosure [Text Block]

(16) ACQUISITION

On June 16, 2015, pursuant to an Acquisition Agreement dated as of April 13, 2015, between the Partnership and Geyser Asset Management, Inc., a Delaware corporation, as agent for the tenant in common investors (the “Acquisition Agreement”), the Partnership acquired approximately 736 acres of land located in Keaau, Hawaii, for $8.1 million (the “Becker Property Acquisition”). As part of the transaction, the Partnership acquired certain rights, easements, and benefits appurtenant to the Property, including all improvements, 641 acres of macadamia nut trees, and windbreak trees. The Partnership funded the Becker Property Acquisition with $5.265 million in proceeds from the 2015 20-Year Term Loan and $2.835 million in proceeds from the 2015 Bridge Loan.

Pursuant to the Acquisition Agreement, the Partnership assumed five leases, which require the lessees of the Property to pay the Partnership rent in the amount of $272,538 for the period from July 1, through December 31, 2015, based on the annual base rent specified in the leases of $545,076 through December 31, 2015. The annual base rent increases to $601,809 effective January 1, 2016 through December 31, 2021, the expiration date of the leases. The rent is required to be paid to the Partnership in equal quarterly installments, including general excise tax.