Discontinued Operations

9 Months Ended

Sep. 30, 2012

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

(6) Discontinued Operations –

In January 2011, the Partnership entered into an agreement to sell the Applebee’s restaurant in McAllen, Texas to an unrelated third party. On March 10, 2011, the sale closed with the Partnership receiving net proceeds of $1,618,981, which resulted in a net gain of $776,219. At the time of sale, the cost and related accumulated depreciation was $1,320,104 and $477,342, respectively.

On March 16, 2011, the Partnership sold its remaining 0.2706% interest in the Champps Americana restaurant in Columbus, Ohio to an unrelated third party. The Partnership received net sale proceeds of $8,299, which resulted in a net gain of $1,589. The cost and related accumulated depreciation of the interest sold was $9,330 and $2,620, respectively.

On February 3, 2012, the Partnership sold its remaining 1.1177% interest in the Arby’s restaurant in Smyrna, Georgia to an unrelated third party. The Partnership received net sale proceeds of $4,300, which resulted in a net loss of $4,764. The cost and related accumulated depreciation of the interest sold was $13,866 and $4,802, respectively.

In February 2012, the Partnership entered into an agreement to sell the Biaggi’s restaurant in Fort Wayne, Indiana to an unrelated third party. On March 29, 2012, the sale closed with the Partnership receiving net proceeds of $1,566,807, which resulted in a net gain of $435,703. At the time of sale, the cost and related accumulated depreciation was $1,379,346 and $248,242, respectively. At December 31, 2011, the property was classified as Real Estate Held for Sale with a carrying value of $1,131,104.

During the first nine months of 2012 and 2011, the Partnership distributed net sale proceeds of $155,385 and $154,010 to the Limited and General Partners as part of their quarterly distributions, which represented a return of capital of $7.08 and $6.99 per Limited Partnership Unit, respectively. The Partnership anticipates the remaining net sale proceeds will either be reinvested in additional property or distributed to the Partners in the future.

The financial results for these properties are reflected as Discontinued Operations in the accompanying financial statements. The following are the results of discontinued operations:

		Three Months Ended September 30				Nine Months Ended September 30
		2012		2011		2012		2011
Rental Income	$	0	$	33,151	$	21,595	$	145,035
Property Management Expenses		0		(874)		(4,708)		(2,751)
Depreciation		0		(7,367)		0		(22,145)
Gain on Disposal of Real Estate		0		0		430,939		777,808
Income from Discontinued Operations	$	0	$	24,910	$	447,826	$	897,947