Note 5. Real Estate

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Note 5. Real Estate

NOTE 5. REAL ESTATE

On June 8, 2011, the Partnership reached final agreement (the “Agreement”) with and sold to the Regional Transportation Commission (the “RTC”) a portion of the Sierra Property for the purpose of widening a section of Moana Lane, a main thoroughfare in Reno, Nevada on which the Sierra Property is located. The widening project was completed in November 2012 and Moana Lane was expanded from four to six lanes. Under the terms of the Agreement, the RTC paid the Partnership $2,731,787 ($2,743,730 less $11,943 for legal and administrative expenses incurred with the sale) for causing demolition of up to 15,800 square feet of the Sierra Property’s buildings, the RTC’s acquisition of 25,306 square feet of the Sierra Property’s land and 10,026 square feet of utility easement. The RTC paid the Partnership an additional $346,700 for relocation and demolition costs related to the Sierra Property’s buildings and improvements. As a result of the Agreement, the Partnership allocated approximately $117,483 of the RTC’s payments to the Sierra Property’s land book value and placed approximately $542,952 ($738,611 less accumulated depreciation of $195,659) into suspense for the portion of the Sierra Property’s buildings that could be demolished. In September 2012, the Partnership began rebuilding the façade of the Sierra Property’s building that was impacted by the Widening Project. The rebuilding project was completed during the fourth quarter of 2012, and the Partnership funded the cost of the rebuilding project with the compensation it had received from the RTC. Following the completion of the rebuilding project, the Partnership removed the $542,952 from suspense and recognized a gain on condemnation in 2012 for this amount.

The Partnership's real estate is summarized as follows:

	December 31, 2012	December 31, 2011
Land	$3,198,574	$3,198,574
Less: land taken by condemnation	(117,483)	(117,483)
	3,081,091	3,081,091
Buildings and improvements	12,069,070	12,069,070
Buildings - suspense	0	(738,611)
	15,150,161	14,411,550
Accumulated depreciation	(4,325,363)	(3,938,307)
Accumulated depreciation - suspense	0	195,659
	$10,824,798	$10,668,902