General

The consolidated financial statements for the three and nine months ended September 30, 2017March 31, 2020 and 20162019 reflect the operationsoperation of one wholly owned industrial flex property located in Maple Grove, Minnesota and a 30% interest in Omaha.

Registrant’sRegistrant’s wholly owned property located in Maple Grove, Minnesota is 100% leased to a single tenant whose lease expiresto October 31, 2019. The tenant has an ongoing option to terminate the lease under certain conditions. One of the conditions is the payment of an early termination penalty the calculation of which is based on the remaining time period in the lease. Another condition is the tenant must provide notice twelve months prior to the termination. As of September 30, 2017, Registrant has not received any notice from the tenant.2024. The tenant pays fixed base rent which increases approximately 3% each year. The tenant pays directly or reimburses Registrant for all utilities, real estate taxes, insurance and most of the property operating expenses and property management fees.

Sentinel Omaha LLC’sOmaha’s portfolio as of March 31, 2020 consists of 10six garden apartment properties and one high rise apartment property.located in three markets. Leases generally are for one year or less. Tenants generally pay fixed rent plus utilities used by tenant.

COVID-19

Due to the COVID-19 outbreak, the Registrant and Omaha may be operating in a challenging and uncertain economic environment. Financial and real estate companies may be affected by liquidity, disparity of real estate values and financing issues. Should market conditions deteriorate, there is no assurance that such conditions will not result in decreased cash flows or ability to repay, refinance or extend Omaha's debt when it comes due, which could result in the sale of investments at amounts less than the reported value at March 31, 2020.

Results of Operations

Total revenues from continuing operations for the three months ended September 30, 2017March 31, 2020 increased $6,000$15,000 to approximately $272,000$293,000 as compared to approximately $266,000$278,000 for the three months ended September 30, 2016.March 31, 2019. Total revenues increased due to an increase in base rental income and other income. Base rental income increased $5,000$11,000 to approximately $182,000$201,000 for the three months ended SeptemberMarch 30, 20172020 as compared to the same period in 20162019 due to a scheduled increase in base rent at Registrant’s property located in Maple Grove, MN. Other rental income decreased slightly. Interest income increased slightly.due to an increase in real estate taxes charged back to the tenant.

The Registrant reported a net loss from operations of approximately $129,000$137,000 for the three months ended September 30, 2017, an increaseMarch 31, 2020, a decrease of $9,000$1,000 as compared to a net loss from operations of approximately $120,000$138,000 for the same period in 2016. Net loss from operations consists of net income from the Maple Grove property offset by partnership income and expenses. The increase of loss from operations was due to higher total expenses partially offset by higher total revenues. Total expenses from operations for 2017 increased $14,000 to approximately $401,000 from approximately $387,000 in 2016, due primarily to increases in real estate operating expenses and management fee expense of $11,000 and $4,000, respectively.

Total revenues from continuing operations for the nine months ended September 30, 2017 increased $16,000 to approximately $807,000 as compared to approximately $791,000 for the nine months ended September 30, 2016. Total revenues increased due to an increase in base rental income. Base rental income increased $16,000 to approximately $540,000 for the nine months ended September 30, 2017 as compared to the same period in 2016 due to an increase in base rent at Registrant’s property located in Maple Grove, MN. Other rental income decreased slightly. Interest income increased slightly.

The Registrant reported a net loss from operations of approximately $388,000 for the nine months ended September 30, 2017, an improvement of $12,000 as compared to a net loss from operations of approximately $400,000 for the same period in 2016.2019. Net loss from operations consists of net income from the Maple Grove property offset by partnership income and expenses. The decrease of loss from operations was primarily due to higher total expenses partiallyincome offset by higher total revenues.expenses. Total expenses from operations for 20172020 increased $4,000$15,000 to approximately $1,195,000$431,000 from approximately $1,191,000$416,000 in 2016,2019, due primarily to an increase in management feedepreciation expense partially offset by decreasesof $5,000, an increase in repairs and maintenance expense of $4,000 and an increase in real estate operating expenses, real estate taxes and professional fees.

10$3,000.

The Registrant has a 30% non-controlling interest in Omaha that is accounted for on a fair value basis. Under the terms of its unsecured bank loan Omaha is precluded from making distributions to its investors, including the Registrant, until its unsecured loan is paid in full. Net increase in net assets decreased $2,457,000increased $252,000 to approximately $31,325,000$1,615,000 for the ninethree months ended September 30, 2017March 31, 2020 compared to net increase in net assets of approximately $33,782,000$1,363,000 for the same period in 2016. Due to the global financial crisis, stagnant real estate market and slowing economy, Omaha reported a net write-down of the value of its real estate portfolio of approximately $100,852,000 during 2008 to 2014.2019. During 2015 and 2016 capitalization rates for older properties in tertiary markets where Omaha owns most of its properties, generally were lower than for the prior years. Physical and economic occupancy improved at the properties during 2015 and market rates increased during 2016. However, occupancy at two large properties which rely on tenants from a local military base declined due to deployments during 2016. Job growth continued to improve but at a slow pace. For the years 2015 and 2016, as real estate values recovered Omaha reported an increase in the value of its portfolio of $88,512,000. During the nine months ended September 30, 2017,2019, Omaha sold its garden apartment property located in Daytona, FloridaIndependence, Missouri and sold bothits garden apartment propertiesproperty located in Fayetteville, North Carolina.Columbus, Ohio. Net sales proceeds in each transaction were used to first pay offselling expenses and retire each property’s related secured mortgage and remainingloan. Remaining net sales proceeds were used to reduceretire Omaha’s unsecured loan.secured mortgage loan encumbering its garden apartment property located in Charleston, South Carolina to further pay down Omaha’s overall debt. During the first ninethree months of 2017,ended March 31, 2020, Omaha reported a net increasedecrease in the value of its remaining real estate portfolio of $29,965,000. During 2016,$900,000. The investment in a 30% non-controlling interest is valued at a discount due to the net operating incomelack of liquidity and ownership of a non-controlling (minority) interest. Registrant has reported for Omaha’s properties continued to improve which alloweda reserve on the value of Omaha to continue to make payments on its unsecured loan. However,books of 20% since March 31, 2018.

During 2019, Omaha’s mortgages and unsecured loan are encumbered with floating interest rates which started paid distributions totaling $28,000,000 to increase nearits members including $8,400,000 to Registrant. On April 16, 2019, the endgeneral partner declared a distribution of 2016 and during 2017. Omaha’s unsecured loan which as of September 30, 2017 has a balance of $26,859,322 has a maturity date of December$400 per full unit for all partners holding units or participations on May 31, 2017. Omaha has one option to extend the maturity date to2019. The distribution was paid on June 30, 2018. It is unlikely Omaha will be able to pay off the unsecured loan from net operating cash flow or refinancing proceeds. Omaha will have to sell one or more of the remaining properties which will reduce its net cash flow from operations which could be available for distribution to the investors after the unsecured loan is satisfied. Registrant had in 2015 recognized a value in the Omaha investment equal to Registrant’s 30% portion of the equity reported on Omaha’s balance sheet as of December 31, 2015 less a 50% reserve. The improvement in Omaha’s real estate values and operations allowed Registrant to reduce the reserve in 2016 to 35% as of December 31, 2016 with further improvement in 2017. Registrant as of September 30, 2017 has recognized a value in the Omaha investment equal to Registrant’s 30% portion of the equity reported on Omaha’s balance sheet as of September 30, 2017 less a 25% reserve.4, 2019.

For additional analysis, please refer to the discussions of the individual properties below.

This report on Form 10-Q includes statements that constitute "forward looking statements" within the meaning of Section 27(A) of the Securities Act of 1933 and Section 21(E) of the Securities Exchange Act of 1934 and that are intended to come within the safe harbor protection provided by those sections. By their nature, all forward looking statements involve risks and uncertainties as further described in the Registrant’sRegistrant’s latest annual report on Form 10-K. Actual results may differ materially from those contemplated by the forward looking statements.

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CRITICAL ACCOUNTING POLICIES

The Registrant’s critical accounting policies are described in its Annual Report on Form 10-K for the year ended December 31, 2016.2019. There were no significant changes to such policies in 2017.2020. There are no accounting pronouncements or interpretations that have been issued, but not yet adopted, that Registrant believes will have a material impact on its consolidated financial statements.

Liquidity and Capital Resources

As of September 30, 2017,March 31, 2020, the Registrant had cash and cash equivalents of approximately $1,379,000.$890,000. These balances are approximately $52,000 higher$97,000 lower than cash and cash equivalents held on December 31, 2016.2019. Cash and cash equivalents increaseddecreased during the ninethree months ended September 30, 2017March 31, 2020 due to partnership expenses partially offset by cash flow generated from operating activities at Registrant’s wholly owned property partially offset by partnership expenses and pay down of the loan payable.property.

Currently, Registrant’s only consistent source of cash is rental income received from the tenant whothat leases 100% of the leasable space at Registrant’s wholly owned property in Maple Grove. The tenant reimburses Registrant for real estate taxes, insurance and most of the properties’ operating expenses leaving a significant portion of the base rent received available to fund capital improvements and partnership administrative expenses. A portion of any remaining annual

Registrant anticipates cash flow is used to pay downgenerated from the principal balance of Note Bproperty located in accordance with the Loan Agreement while the remainingMaple Grove and current cash income is retained by Registrant as cash reserves. As part of Registrant and the Holder restructuring the bank loan in 2011, Registrant set aside $500,000 in escrow to be held and used only to pay the costs to re-tenant the space at Registrant’s wholly owned property if Registrant’s tenant defaults on its lease or exercises its right to terminate the lease early or fails to renew.

Total outstanding debt at September 30, 2017 consists of Note B at $5,726,590. Under the terms of the Loan Agreement, when Note A was repaid, interest on the Note B stopped accruing. Note B matures April 29, 2018. Registrant has three one-year options to extend the maturity date if certain conditions are satisfied. If the Registrant does not have funds on hand sufficient to repay its indebtedness at maturity, the Registrant may need to refinance such indebtedness with new debt financing or provide necessary funds through equity offering(s) or other sources, if available. The Registrant may be unable to obtain a loan whichreserves will be sufficient to retire the existing loan. If it is unable to refinance this indebtedness on acceptable terms, the Registrant may be forced to liquidate its remaining assets upon disadvantageous terms, which could result in losses topay ongoing operating and capital improvement costs, other working capital requirements of the Registrant and adversely affectcurrent fees due to the amount of cash reserves. If general economic conditions result in higher interest rates at a time when the Registrant must refinanceGeneral Partner and its indebtedness, the Registrant's interest expense could increase, which would adversely affect the Registrant's results of operations and financial condition.affiliates. The Registrant has no other debt except normal trade accounts payable and accrued investment management fees.a security deposit held for the tenant at Registrant’s wholly owned property.

During the quarter, inflation and changing prices did not significantly affect the markets in which the Registrant conducts its business, or the Registrant's business overall.

Registrant anticipates cash flow generated from the property located in Maple Grove and current cash reserves will be sufficient to cover operating and capital improvement costs and other working capital requirements of the Registrant so long as the tenant remains in place.

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Eagle Lake Business Center IV (Maple Grove, Minnesota)

Total revenues for the three months ended September 30, 2017March 31, 2020 increased $5,000$15,000 to approximately $270,000$293,000 as compared to approximately $265,000$278,000 for the three months ended September 30, 2016.March 31, 2019. The property reported higher base rental income and slightly lowerhigher other rental income. Base rental income was higher in 20172020 due to a scheduled increase in the base rent. Other income increased due to an increase in real estate taxes charged back to the tenant. Net operating income, which includes deductions for depreciation, increased $8,000remained approximately the same at $180,000 for the three months ended September 30, 2017March 31, 2020 as compared to approximately $171,000 from approximately $163,000 for the three months ended September 30, 2016 due primarily tosame period in 2019. Higher total revenue was offset by higher total revenues combined with lower operating expenses. Operating expenses were lowerhigher due to lowerhigher depreciation expense, repairs expenses and real estate tax.

Total revenues for the nine months ended September 30, 2017 increased $13,000 to approximately $802,000 as compared to approximately $789,000 for the nine months ended September 30, 2016. The property reported higher base rental income and slightly lower other rental income. Base rental income was higher in 2017 due to a scheduled increase in the base rent. Net operating income, which includes deductions for depreciation, increased $21,000 for the nine months ended September 30, 2017 to approximately $494,000 from approximately $473,000 for the nine months ended September 30, 2016 due primarily to higher total revenues combined with lower operating expenses. Operating expenses were lower due to lower utilitiesmaintenance expense and real estate tax.tax expense.

Investment in Sentinel Omaha, LLC

Comparison of three months ended September 30, 2017March 31, 2020 to September 30, 2016:March 31, 2019:

As of September 30, 2017,March 31, 2020, the Omaha portfolio consisted of 11six multi-family properties located in 8three markets. Omaha’s total revenues for the three months ended September 30, 2017March 31, 2019 were approximately $9,867,000.$6,234,000. Income before net unrealized incomelosses was approximately $3,225,000.$2,776,000. Major expenses included approximately $1,554,000$492,000 for interest expense, $898,000$431,000 for repairs and maintenance, $1,286,000$891,000 for payroll, and $1,212,000$729,000 for real estate taxes. Omaha reported net unrealized incomelosses of approximately $10,152,000$1,161,000 resulting in a net increase in net assets of approximately $13,377,000.$1,615,000. For the three months ended September 30, 2017,March 31, 2019, the Registrant’s 30% equity interest in the net increase in net assetsincome of Omaha was approximately $4,013,000.$484,000. Registrant recognized a reserve of 25%reserves 20% of the reported value of Omaha on its balance sheet.sheet for March 31, 2020. The reserve for value was adjusted in conjunction with recording the equity income for the quarter ended September 30, 2017.March 31, 2020. As a result, Registrant reported net income from equity interest in net increase in net assetsincome of Omaha for the quarter ended September 30, 2017March 31, 2020 of $5,219,000.$387,000.

As of September 30, 2016,March 31, 2019, the Omaha portfolio consisted of 14eight multi-family properties located in 10five markets. Omaha’s total revenues for the three months ended September 30, 2016March 31, 2019 were approximately $11,213,000.$7,829,000. Income before net unrealized incomelosses was approximately $4,017,000.$2,937,000. Major expenses included approximately $1,647,000$1,085,000 for interest expense, $1,064,000$559,000 for repairs and maintenance, $1,496,000$1,045,000 for payroll, and $1,134,000$953,000 for real estate taxes. Omaha reported net unrealized incomelosses of approximately $12,225,000$1,574,000 resulting in a net increase in net assets of approximately $16,242,000.$1,363,000. For the three months ended September 30, 2016,March 31, 2019, the Registrant’s 30% equity interest in the net increase in net assetsincome of Omaha was approximately $4,872,000.$409,000. Registrant continues to reserve 50%reserves 20% of the reported value of Omaha on its balance sheet.sheet for March 31, 2019. The reserve for value was adjusted in conjunction with recording the equity income for the quarter ended September 30, 2016.March 31, 2019. As a result, Registrant reported net income from equity interest in net increase in net assetsincome of Omaha for the quarter ended September 30, 2016March 31, 2019 of $2,436,000.

Comparison of nine months ended September 30, 2017 to September 30, 2016:

Omaha’s total revenues for the nine months ended September 30, 2017 were approximately $31,616,000. Income before realized losses and net unrealized income was approximately $10,419,000. Major expenses included approximately $4,837,000 for interest expense, $2,694,000 for repairs and maintenance, $4,301,000 for payroll, and $3,952,000 for real estate taxes. Omaha reported realized losses of $20,794,000 and net unrealized income of approximately $41,700,000 resulting in net increase in net assets of approximately $31,325,000. For the nine months ended September 30, 2017, the Registrant’s 30% equity interest in the net increase in net assets of Omaha was approximately $9,397,000. Registrant recognized a reserve of 25% of the reported value of Omaha on its balance sheet. The reserve for value was adjusted in conjunction with recording the equity income for the nine months ended September 30, 2017. As a result, Registrant reported net equity in net increase in net assets of Omaha for the nine months ended September 30, 2017 of $10,927,000.

Omaha’s total revenues for the nine months ended September 30, 2016 were approximately $32,986,000. Income before net unrealized income was approximately $12,163,000. Major expenses included approximately $4,880,000 for interest expense, $2,811,000 for repairs and maintenance, $4,428,000 for payroll, and $3,345,000 for real estate taxes. Omaha reported net unrealized income of approximately $21,619,000 resulting in net increase in net assets of approximately $33,782,000. For the nine months ended September 30, 2016, the Registrant’s 30% equity interest in the net increase in net assets of Omaha was approximately $10,135,000. Registrant continues to reserve 50% of the reported value of Omaha on its balance sheet. The reserve for value was adjusted in conjunction with recording the equity income for the nine months ended September 30, 2016. As a result, Registrant reported net equity in net increase in net assets of Omaha for the nine months ended September 30, 2016 of $5,067,000.$327,000.

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ITEM 3.

None

ITEM 4.

CONTROLS AND PROCEDURES

PART II – OTHER INFORMATION

ITEM 6.

EXHIBITS

Exhibit No.          DescriptionEXHIBITS

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.