Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | AEI Income & Growth Fund XXII LTD Partnership |
Document Type | 10-K |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | shares | 14,355 |
Entity Public Float | $ | $ 0 |
Amendment Flag | false |
Entity Central Index Key | 1,023,458 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Smaller Reporting Company |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Balance Sheet
Balance Sheet - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash | $ 1,315,575 | $ 1,246,487 |
Real Estate Investments: | ||
Land | 2,367,033 | 2,367,033 |
Buildings | 6,628,822 | 6,628,822 |
Acquired Intangible Lease Assets | 932,882 | 932,882 |
Real Estate Held for Investment, at cost | 9,928,737 | 9,928,737 |
Accumulated Depreciation and Amortization | 2,155,061 | 1,796,867 |
Real Estate Held for Investment, Net | 7,773,676 | 8,131,870 |
Real Estate Held for Sale | 0 | 550,000 |
Total Real Estate Investments | 7,773,676 | 8,681,870 |
Total Assets | 9,089,251 | 9,928,357 |
Current Liabilities: | ||
Payable to AEI Fund Management, Inc. | 11,441 | 26,900 |
Distributions Payable | 146,803 | 134,022 |
Unearned Rent | 9,620 | 9,058 |
Total Current Liabilities | 167,864 | 169,980 |
Partners’ Capital (Deficit): | ||
General Partners | 30 | (4,151) |
Limited Partners – 24,000 Units authorized; 14,355 and 15,134 Units issued and outstanding as of December 31, 2015 and 2014, respectively | 8,921,357 | 9,762,528 |
Total Partners' Capital | 8,921,387 | 9,758,377 |
Total Liabilities and Partners' Capital | 9,089,251 | 9,928,357 |
Limited Partner [Member] | ||
Partners’ Capital (Deficit): | ||
Total Partners' Capital | $ 8,921,357 | $ 9,762,528 |
Balance Sheet (Parentheticals)
Balance Sheet (Parentheticals) - Limited Partner [Member] - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Limited Partners, units authorized | 24,000 | 24,000 |
Limited Partners, units issued | 14,355 | 15,134 |
Limited Partners, units outstanding | 14,355 | 15,134 |
Statement of Income
Statement of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Rental Income | $ 724,292 | $ 713,838 |
Expenses: | ||
Partnership Administration – Affiliates | 152,838 | 149,822 |
Partnership Administration and Property Management – Unrelated Parties | 40,912 | 33,676 |
Depreciation and Amortization | 308,441 | 308,441 |
Total Expenses | 502,191 | 491,939 |
Operating Income | 222,101 | 221,899 |
Other Income: | ||
Interest Income | 3,584 | 4,159 |
Income from Continuing Operations | 225,685 | 226,058 |
Income (Loss) from Discontinued Operations | 38,063 | (42,578) |
Net Income | 263,748 | 183,480 |
Net Income Allocated: | ||
General Partners | 25,713 | 5,504 |
Limited Partners | $ 238,035 | $ 177,976 |
Income (Loss) per Limited Partnership Unit: | ||
Continuing Operations (in Dollars per share) | $ 14.90 | $ 14.25 |
Discontinued Operations (in Dollars per share) | 1.30 | (2.68) |
Total – Basic and Diluted (in Dollars per share) | $ 16.20 | $ 11.57 |
Weighted Average Units Outstanding – Basic and Diluted (in Shares) | 14,692 | 15,388 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 263,748 | $ 183,480 |
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 358,194 | 358,194 |
Gain on Sale of Real Estate | 21,525 | 0 |
Increase (Decrease) in Payable to AEI Fund Management, Inc. | (15,459) | (5,083) |
Increase (Decrease) in Unearned Rent | 562 | 0 |
Total Adjustments | 321,772 | 353,111 |
Net Cash Provided By (Used For) Operating Activities | 585,520 | 536,591 |
Cash Flows from Investing Activities: | ||
Proceeds from Sale of Real Estate | 571,525 | 0 |
Cash Flows from Financing Activities: | ||
Distributions Paid to Partners | 543,708 | 681,006 |
Repurchase of Partnership Units | 544,249 | 238,406 |
Net Cash Provided By (Used For) Financing Activities | (1,087,957) | (919,412) |
Net Increase (Decrease) in Cash | 69,088 | (382,821) |
Cash, beginning of year | 1,246,487 | 1,629,308 |
Cash, end of year | $ 1,315,575 | $ 1,246,487 |
Statement of Changes in Partner
Statement of Changes in Partners' Capital - USD ($) | General Partner [Member] | Limited Partner [Member] | Total |
Balance, December 31, 2013 at Dec. 31, 2013 | $ 9,608 | $ 10,390,700 | $ 10,400,308 |
Balance, December 31, 2013 (in Shares) at Dec. 31, 2013 | 15,485.67 | ||
Balance at Dec. 31, 2014 | (4,151) | $ 9,762,528 | 9,758,377 |
Balance (in Shares) at Dec. 31, 2014 | 15,134 | ||
Distributions Declared | 16,600 | $ 570,405 | 587,005 |
Repurchase of Partnership Units | 2,663 | $ 235,743 | 238,406 |
Units Repurchased (in Shares) | 351.41 | ||
Net Income | 5,504 | $ 177,976 | 183,480 |
Balance at Dec. 31, 2015 | 30 | $ 8,921,357 | 8,921,387 |
Balance (in Shares) at Dec. 31, 2015 | 14,355 | ||
Distributions Declared | 16,089 | $ 540,400 | 556,489 |
Repurchase of Partnership Units | 5,443 | $ 538,806 | 544,249 |
Units Repurchased (in Shares) | 779.60 | ||
Net Income | $ 25,713 | $ 238,035 | $ 263,748 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | (1) Organization – AEI Income & Growth Fund XXII Limited Partnership (“Partnership”) was formed to acquire and lease commercial properties to operating tenants. The Partnership's operations are managed by AEI Fund Management XXI, Inc. (“AFM”), the Managing General Partner. Robert P. Johnson, the President and sole director of AFM, serves as the Individual General Partner. AFM is a wholly owned subsidiary of AEI Capital Corporation of which Mr. Johnson is the majority shareholder. AEI Fund Management, Inc. (“AEI”), an affiliate of AFM, performs the administrative and operating functions for the Partnership. The terms of the Partnership offering called for a subscription price of $1,000 per Limited Partnership Unit, payable on acceptance of the offer. The Partnership commenced operations on May 1, 1997 when minimum subscriptions of 1,500 Limited Partnership Units ($1,500,000) were accepted. The offering terminated January 9, 1999 when the extended offering period expired. The Partnership received subscriptions for 16,917.222 Limited Partnership Units. Under the terms of the Limited Partnership Agreement, the Limited Partners and General Partners contributed funds of $16,917,222 and $1,000, respectively. During operations, any Net Cash Flow, as defined, which the General Partners determine to distribute will be distributed 97% to the Limited Partners and 3% to the General Partners. Distributions to Limited Partners will be made pro rata by Units. Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the General Partners determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Partners and 1% to the General Partners until the Limited Partners receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 9% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow; (ii) any remaining balance will be distributed 90% to the Limited Partners and 10% to the General Partners. Distributions to the Limited Partners will be made pro rata by Units. For tax purposes, profits from operations, other than profits attributable to the sale, exchange, financing, refinancing or other disposition of property, will be allocated first in the same ratio in which, and to the extent, Net Cash Flow is distributed to the Partners for such year. Any additional profits will be allocated in the same ratio as the last dollar of Net Cash Flow is distributed. Net losses from operations will be allocated 99% to the Limited Partners and 1% to the General Partners. For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Partnership Agreement as follows: (i) first, to those partners with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Partners and 1% to the General Partners until the aggregate balance in the Limited Partners' capital accounts equals the sum of the Limited Partners' Adjusted Capital Contributions plus an amount equal to 9% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously allocated; (iii) third, the balance of any remaining gain will then be allocated 90% to the Limited Partners and 10% to the General Partners. Losses will be allocated 98% to the Limited Partners and 2% to the General Partners. The General Partners are not required to currently fund a deficit capital balance. Upon liquidation of the Partnership or withdrawal by a General Partner, the General Partners will contribute to the Partnership an amount equal to the lesser of the deficit balances in their capital accounts or 1% of total Limited Partners' and General Partners' capital contributions. In May 2015, the Managing General Partner mailed a Consent Statement (Proxy) seeking the consent of the Limited Partners to continue the Partnership for an additional 60 months or to initiate the final disposition, liquidation and distribution of all of the Partnership’s properties and assets. Approval of either proposal required the affirmative vote of holders of a majority of the outstanding units. On June 17, 2015, the votes were counted and neither proposal received the required majority vote. As a result, the Partnership will not liquidate and will continue in operation until the Limited Partners vote to authorize the sale of all of the Partnership's properties or December 31, 2046, as stated in the Limited Partnership Agreement. However, in approximately five years, the Managing General Partner expects to again submit the question to liquidate to a vote by the Limited Partners. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | (2) Summary of Significant Accounting Policies – Financial Statement Presentation The accounts of the Partnership are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes. Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with United States Generally Accepted Accounting Principles (US GAAP). Those estimates and assumptions may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Significant items, subject to such estimates and assumptions, include the carrying value of real estate held for investment, real estate held for sale and related intangible assets. The Partnership regularly assesses whether market events and conditions indicate that it is reasonably possible to recover the carrying amounts of its investments in real estate from future operations and sales. A change in those market events and conditions could have a material effect on the carrying amount of its real estate. Cash Concentrations of Credit Risk The Partnership's cash is deposited in one financial institution and at times during the year it may exceed FDIC insurance limits. Receivables Credit terms are extended to tenants in the normal course of business. The Partnership performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral. Receivables are recorded at their estimated net realizable value. The Partnership follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Partnership is of the belief that such accounts, if any, will be collectible in all material respects and thus an allowance is not necessary. Accounts are considered past due if payment is not made on a timely basis in accordance with the Partnership’s credit terms. Receivables considered uncollectible are written off. Income Taxes The income or loss of the Partnership for federal income tax reporting purposes is includable in the income tax returns of the partners. In general, no recognition has been given to income taxes in the accompanying financial statements. The tax return and the amount of distributable Partnership income or loss are subject to examination by federal and state taxing authorities. If such an examination results in changes to distributable Partnership income or loss, the taxable income of the partners would be adjusted accordingly. Primarily due to its tax status as a partnership, the Partnership has no significant tax uncertainties that require recognition or disclosure. The Partnership is no longer subject to U.S. federal income tax examinations for tax years before 2012, and with few exceptions, is no longer subject to state tax examinations for tax years before 2012. Revenue Recognition The Partnership's real estate is leased under net leases, classified as operating leases. The leases provide for base annual rental payments payable in monthly installments. The Partnership recognizes rental income according to the terms of the individual leases. For leases that contain stated rental increases, the increases are recognized in the year in which they are effective. Contingent rental payments are recognized when the contingencies on which the payments are based are satisfied and the rental payments become due under the terms of the leases. Real Estate Upon acquisition of real properties, the Partnership records them in the financial statements at cost. The purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market leases and the value of in-place leases. The allocation of the purchase price is based upon the fair value of each component of the property. Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management’s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset. The fair values of above market and below market in-place leases will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the non-cancelable term of the lease including any bargain renewal periods. The above market and below market lease values will be capitalized as intangible lease assets or liabilities. Above market lease values will be amortized as an adjustment of rental income over the remaining terms of the respective leases. Below market leases will be amortized as an adjustment of rental income over the remaining term of the respective leases, including any bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market and below market in-place lease values relating to that lease would be recorded as an adjustment to rental income. The fair values of in-place leases will include estimated direct costs associated with obtaining a new tenant, and opportunity costs associated with lost rentals which are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new tenant may include commissions, tenant improvements, and other direct costs and are estimated, in part, by management’s consideration of current market costs to execute a similar lease. These direct costs will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. The value of opportunity costs will be calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These intangibles will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. The Partnership tests real estate for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Partnership will hold and operate, it compares the carrying amount of the property to the estimated probability-weighted future undiscounted cash flows expected to result from the property and its eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of the property, the Partnership recognizes an impairment loss by the amount by which the carrying amount of the property exceeds the fair value of the property. For properties held for sale, the Partnership determines whether impairment has occurred by comparing the property’s estimated fair value less cost to sell to its current carrying value. If the carrying value is greater than the net realizable value, an impairment loss is recorded to reduce the carrying value of the property to its net realizable value. For financial reporting purposes, the buildings owned by the Partnership are depreciated using the straight-line method over an estimated useful life of 25 years. Intangible lease assets are amortized using the straight-line method for financial reporting purposes based on the remaining life of the lease. The disposition of a property or classification of a property as Real Estate Held for Sale by the Partnership does not represent a strategic shift that will have a major effect on the Partnership’s operations and financial results. Therefore, the results from operating and selling the property are included in continuing operations. However, if a property was classified as Real Estate Held for Sale at December 31, 2013, the property was considered discontinued operations under prior accounting guidance. The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method. Each tenant-in-common owns a separate, undivided interest in the properties. Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests. The financial statements reflect only this Partnership's percentage share of the properties' land, building, liabilities, revenues and expenses. The Partnership's properties are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which the properties are located. These laws could require the Partnership to investigate and remediate the effects of the release or disposal of hazardous materials at these locations if found. For each property, an environmental assessment is completed prior to acquisition. In addition, the lease agreements typically strictly prohibit the production, handling, or storage of hazardous materials (except where incidental to the tenant’s business such as use of cleaning supplies) in violation of applicable law to restrict environmental and other damage. Environmental liabilities are recorded when it is determined the liability is probable and the costs can reasonably be estimated. There were no environmental issues noted or liabilities recorded at December 31, 2015 and 2014. Fair Value Measurements As of December 31, 2015 and 2014, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis. Income Per Unit Income per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented. Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December 31, 2015 and 2014. Reportable Segments The Partnership invests in single tenant commercial properties throughout the United States that are net leased to tenants in various industries. Because these net leased properties have similar economic characteristics, the Partnership evaluates operating performance on an overall portfolio basis. Therefore, the Partnership’s properties are classified as one reportable segment. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments. The accounting guidance for lessors is largely unchanged. The ASU is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted. It is to be adopted using a modified retrospective approach. Management is currently evaluating the impact the adoption of this guidance will have on the Partnership’s financial statements. NOTES TO FINANCIAL STATEMENTS |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | (3) Related Party Transactions – The Partnership owns the percentage interest shown below in the following properties as tenants-in-common with the affiliated entities listed: Advance Auto Parts store (65% – AEI Income & Growth Fund 25 LLC); Applebee’s restaurant (60% – AEI Income & Growth Fund 26 LLC); Tractor Supply Company store (50% – AEI Income & Growth Fund 24 LLC); Best Buy store (33% – AEI Income & Growth Fund 24 LLC and AEI Income & Growth Fund 27 LLC); Staples store (28% – AEI Income & Growth Fund 25 LLC); and PetSmart store (34% – AEI Accredited Investor Fund V LP). The Partnership owned a 50% interest in a Johnny Carino’s restaurant. AEI Accredited Investor Fund 2002 Limited Partnership, an affiliate of the Partnership, owned a 50% interest in this property until the property was sold to an unrelated third party in 2015. AEI received the following reimbursements for costs and expenses from the Partnership for the years ended December 31: 2015 2014 AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners. These amounts included $2,194 of expenses related to Discontinued Operations in 2014. $ 152,838 $ 152,016 AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management. These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs. These amounts included $28,972 and $40,384 of expenses related to Discontinued Operations in 2015 and 2014, respectively. $ 69,884 $ 74,060 AEI is reimbursed for costs incurred in providing services related to the sale of property. $ 30,442 $ 0 The payable to AEI Fund Management, Inc. represents the balance due for the services described in 3a, b and c. This balance is non-interest bearing and unsecured and is to be paid in the normal course of business. |
Real Estate Investments
Real Estate Investments | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Real Estate Disclosure [Text Block] | (4) Real Estate Investments – The Partnership leases its properties to tenants under net leases, classified as operating leases. Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property. For some leases, the Partnership is responsible for repairs to the structural components of the building, the roof, and the parking lot. At the time the properties were acquired, the remaining primary lease terms varied from 10 to 20 years, except for the Staples store, which had a remaining primary term of 8.4 years. The leases provide the tenants with two to five five-year renewal options subject to the same terms and conditions as the primary term. The Partnership's properties are commercial, single-tenant buildings. The Advance Auto Parts store was constructed in 2005 and acquired in 2006. The Applebee’s restaurant was constructed in 1996 and acquired in 2006. The Tractor Supply Company store was constructed in 2005 and acquired in 2007. The Best Buy store was constructed and acquired in 2008. The Staples store was constructed in 2010 and acquired in 2011. The PetSmart store was constructed and acquired in 2012. The St. Vincent Medical Clinic was constructed in 2010 and acquired in 2013. There have been no costs capitalized as improvements subsequent to the acquisitions. The cost of the properties not held for sale and related accumulated depreciation at December 31, 2015 are as follows: Property Land Buildings Total Accumulated Depreciation Advance Auto Parts, Indianapolis, IN $ 537,914 $ 706,259 $ 1,244,173 $ 255,426 Applebee’s, Crawfordsville, IN 506,030 1,350,626 1,856,656 486,225 Tractor Supply, Grand Forks, ND 238,547 1,165,327 1,403,874 417,575 Best Buy, Lake Geneva, WI 335,142 1,687,104 2,022,246 486,447 Staples, Clermont, FL 239,400 540,935 780,335 91,056 PetSmart, Galveston TX 340,000 280,048 620,048 42,474 St. Vincent Medical Clinic, Lonoke AR 170,000 898,523 1,068,523 91,350 $ 2,367,033 $ 6,628,822 $ 8,995,855 $ 1,870,553 For the years ended December 31, 2015 and 2014, the Partnership recognized depreciation expense from continuing operations of $265,152 for both years. The following schedule presents the cost and related accumulated amortization of acquired lease intangibles not held for sale at December 31: 2015 2014 Cost Accumulated Amortization Cost Accumulated Amortization In-Place Lease Intangibles (weighted average life of 77 and 89 months, respectively) $ 418,089 $ 146,955 $ 418,089 $ 103,666 Above-Market Lease Intangibles (weighted average life of 91 and 103 months, respectively) 514,793 137,553 514,793 87,800 Acquired Intangible Lease Assets $ 932,882 $ 284,508 $ 932,882 $ 191,466 For the years ended December 31, 2015 and 2014, the value of in-place lease intangibles amortized to expense was $43,289 and the decrease to rental income for above-market leases was $49,753 for both years. For lease intangibles not held for sale at December 31, 2015, the estimated amortization expense is $43,289 for each of the next four succeeding years. For the year ended December 31, 2020, the estimated amortization expense is $32,871. The estimated decrease to rental income is $49,753 for each of the next five succeeding years. For properties owned as of December 31, 2015, the minimum future rent payments required by the leases are as follows: 2016 $ 790,460 2017 804,352 2018 809,548 2019 677,289 2020 549,260 Thereafter 1,525,973 $ 5,156,882 There were no contingent rents recognized in 2015 and 2014. |
Major Tenants
Major Tenants | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Reporting, Disclosure of Major Customers | (5) Major Tenants – The following schedule presents rental income from individual tenants, or affiliated groups of tenants, who each contributed more than ten percent of the Partnership's total rental income for the years ended December 31: Tenants 2015 2014 Best Buy Stores, L.P. $ 149,302 $ 148,887 Apple American Group 143,978 143,978 Tractor Supply Company 109,259 108,697 St. Vincent Health System 98,934 94,846 Advance Stores Company 92,558 87,168 Staples N/A 73,031 Aggregate rental income of major tenants $ 594,031 $ 656,607 Aggregate rental income of major tenants as a percentage of total rental income 77% 92% |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (6) Discontinued Operations – After experiencing financial difficulties, the tenant of the Johnny Carino’s restaurant in Longmont, Colorado filed for Chapter 11 bankruptcy reorganization on March 27, 2014. Shortly thereafter, the tenant closed the restaurant, filed a motion with the bankruptcy court to reject the lease and returned possession of the property to the Partnership. As of the date of the bankruptcy filing, the tenant owed $31,212 of past due rent, which was not accrued for financial reporting purposes. The Partnership submitted a Proof of Claim for damages to the bankruptcy court. The tenant’s reorganization plan was approved by the bankruptcy court effective February 2, 2015. In August 2015, the Partnership received a payment of $43,813 on its claim from the plan. In February 2016, the Partnership received a final claim payment of $8,555. In September 2013, the Partnership decided to sell its 50% interest in the Johnny Carino’s restaurant in Longmont, Colorado and classified it as Real Estate Held for Sale. Since November 2013, the Partnership reached agreements to sell the property to three unrelated third parties. In each case, the potential buyer subsequently withdrew the offer and cancelled the agreement. In April 2015, the Partnership entered into an agreement to sell the property to a new buyer. On June 19, 2015, the sale closed with the Partnership receiving net sale proceeds of $571,525, which resulted in a net gain of $21,525. At the time of sale, the carrying value of the property was $550,000. While the property was vacant, the Partnership was responsible for its 50% share of real estate taxes and other costs associated with maintaining the property. The financial results for this property are reflected as Discontinued Operations in the accompanying financial statements. The following are the results of discontinued operations for the years ended December 31: 2015 2014 Rental Income $ 1,697 $ 0 Bankruptcy Claim Payment Received 43,813 0 Property Management Expenses (28,972) (42,578) Gain on Disposal of Real Estate 21,525 0 Income (Loss) from Discontinued Operations $ 38,063 $ (42,578) 2015 2014 Cash Flows from Discontinued Operations: Operating Activities $ 16,538 $ (42,578) Investing Activities $ 571,525 $ 0 |
Partners' Capital
Partners' Capital | 12 Months Ended |
Dec. 31, 2015 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital Notes Disclosure [Text Block] | (7) Partners’ Capital – For the years ended December 31, 2015 and 2014, the Partnership declared distributions of $556,489 and $587,005, respectively. The Limited Partners received distributions of $540,400 and $570,405 and the General Partners received distributions of $16,089 and $16,600 for the years, respectively. The Limited Partners' distributions represented $36.78 and $37.07 per Limited Partnership Unit outstanding using 14,692 and 15,388 weighted average Units in 2015 and 2014, respectively. The distributions represented $16.20 and $10.70 per Unit of Net Income and $20.58 and $26.37 per Unit of return of capital in 2015 and 2014, respectively. As part of the distributions discussed above, the Partnership distributed net sale proceeds of $30,303 and $50,505 in 2015 and 2014, respectively. The Limited Partners received distributions of $30,000 and $50,000 and the General Partners received distributions of $303 and $505 for the years, respectively. The Limited Partners’ distributions represented $2.05 and $3.23 per Unit for the years, respectively. The Partnership may repurchase Units from Limited Partners who have tendered their Units to the Partnership. Such Units may be acquired at a discount. The Partnership will not be obligated to purchase in any year any number of Units that, when aggregated with all other transfers of Units that have occurred since the beginning of the same calendar year (excluding Permitted Transfers as defined in the Partnership Agreement), would exceed 5% of the total number of Units outstanding on January 1 of such year. In no event shall the Partnership be obligated to purchase Units if, in the sole discretion of the Managing General Partner, such purchase would impair the capital or operation of the Partnership. During 2015, the Partnership repurchased a total of 779.6 Units for $538,806 from 34 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using net sale proceeds. On April 1, 2014, the Partnership repurchased a total of 20.0 Units for $13,536 from two Limited Partners. The Partnership acquired these Units using Net Cash Flow from operations. On October 1, 2014, the Partnership repurchased a total of 331.41 Units for $222,207 from 13 Limited Partners. The Partnership acquired these Units using net sale proceeds. The repurchases increase the remaining Limited Partners' ownership interest in the Partnership. As a result of these repurchases and pursuant to the Partnership Agreement, the General Partners received distributions of $5,443 and $2,663 in 2015 and 2014, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | (8) Income Taxes – The following is a reconciliation of net income for financial reporting purposes to income reported for federal income tax purposes for the years ended December 31: 2015 2014 Net Income for Financial Reporting Purposes $ 263,748 $ 183,480 Depreciation for Tax Purposes Under Depreciation and Amortization for Financial Reporting Purposes 133,637 122,119 Income Accrued for Tax Purposes Over (Under) Income for Financial Reporting Purposes (27,776) 18,344 Property Expenses for Tax Purposes (Over) Under Expenses for Financial Reporting Purposes (15,475) 5,975 Loss on Sale of Real Estate for Tax Purposes Compared to Gain for Financial Reporting Purposes (529,149) 0 Taxable Income (Loss) to Partners $ (175,015) $ 329,918 The following is a reconciliation of Partners' capital for financial reporting purposes to Partners' capital reported for federal income tax purposes for the years ended December 31: 2015 2014 Partners' Capital for Financial Reporting Purposes $ 8,921,387 $ 9,758,377 Adjusted Tax Basis of Investments in Real Estate Over Net Investments in Real Estate for Financial Reporting Purposes 810,909 1,206,421 Income Accrued for Tax Purposes Over Income for Financial Reporting Purposes 12,494 40,270 Property Expenses for Tax Purposes Under Expenses for Financial Reporting Purposes 0 15,475 Syndication Costs Treated as Reduction of Capital For Financial Reporting Purposes 2,418,726 2,418,726 Partners' Capital for Tax Reporting Purposes $ 12,163,516 $ 13,439,269 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Distribution Policy, Members or Limited Partners, Description | During operations, any Net Cash Flow, as defined, which the General Partners determine to distribute will be distributed 97% to the Limited Partners and 3% to the General Partners. Distributions to Limited Partners will be made pro rata by Units.Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the General Partners determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Partners and 1% to the General Partners until the Limited Partners receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 9% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow; (ii) any remaining balance will be distributed 90% to the Limited Partners and 10% to the General Partners. Distributions to the Limited Partners will be made pro rata by Units. |
Key Provisions of Operating or Partnership Agreement, Description | For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Partnership Agreement as follows: (i) first, to those partners with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Partners and 1% to the General Partners until the aggregate balance in the Limited Partners' capital accounts equals the sum of the Limited Partners' Adjusted Capital Contributions plus an amount equal to 9% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously allocated; (iii) third, the balance of any remaining gain will then be allocated 90% to the Limited Partners and 10% to the General Partners. Losses will be allocated 98% to the Limited Partners and 2% to the General Partners.The General Partners are not required to currently fund a deficit capital balance. Upon liquidation of the Partnership or withdrawal by a General Partner, the General Partners will contribute to the Partnership an amount equal to the lesser of the deficit balances in their capital accounts or 1% of total Limited Partners' and General Partners' capital contributions. |
Basis of Accounting, Policy [Policy Text Block] | Financial Statement Presentation The accounts of the Partnership are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes. |
Use of Estimates, Policy [Policy Text Block] | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with United States Generally Accepted Accounting Principles (US GAAP). Those estimates and assumptions may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Significant items, subject to such estimates and assumptions, include the carrying value of real estate held for investment, real estate held for sale and related intangible assets. The Partnership regularly assesses whether market events and conditions indicate that it is reasonably possible to recover the carrying amounts of its investments in real estate from future operations and sales. A change in those market events and conditions could have a material effect on the carrying amount of its real estate. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Cash Concentrations of Credit Risk The Partnership's cash is deposited in one financial institution and at times during the year it may exceed FDIC insurance limits. |
Receivables, Policy [Policy Text Block] | Receivables Credit terms are extended to tenants in the normal course of business. The Partnership performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral. Receivables are recorded at their estimated net realizable value. The Partnership follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Partnership is of the belief that such accounts, if any, will be collectible in all material respects and thus an allowance is not necessary. Accounts are considered past due if payment is not made on a timely basis in accordance with the Partnership’s credit terms. Receivables considered uncollectible are written off |
Income Tax, Policy [Policy Text Block] | Income Taxes The income or loss of the Partnership for federal income tax reporting purposes is includable in the income tax returns of the partners. In general, no recognition has been given to income taxes in the accompanying financial statements. The tax return and the amount of distributable Partnership income or loss are subject to examination by federal and state taxing authorities. If such an examination results in changes to distributable Partnership income or loss, the taxable income of the partners would be adjusted accordingly. Primarily due to its tax status as a partnership, the Partnership has no significant tax uncertainties that require recognition or disclosure. The Partnership is no longer subject to U.S. federal income tax examinations for tax years before 2012, and with few exceptions, is no longer subject to state tax examinations for tax years before 2012. |
Revenue Recognition Leases [Policy Text Block] | Revenue Recognition The Partnership's real estate is leased under net leases, classified as operating leases. The leases provide for base annual rental payments payable in monthly installments. The Partnership recognizes rental income according to the terms of the individual leases. For leases that contain stated rental increases, the increases are recognized in the year in which they are effective. Contingent rental payments are recognized when the contingencies on which the payments are based are satisfied and the rental payments become due under the terms of the leases. |
Property, Plant and Equipment, Policy [Policy Text Block] | Real Estate Upon acquisition of real properties, the Partnership records them in the financial statements at cost. The purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market leases and the value of in-place leases. The allocation of the purchase price is based upon the fair value of each component of the property. Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management’s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset. The fair values of above market and below market in-place leases will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the non-cancelable term of the lease including any bargain renewal periods. The above market and below market lease values will be capitalized as intangible lease assets or liabilities. Above market lease values will be amortized as an adjustment of rental income over the remaining terms of the respective leases. Below market leases will be amortized as an adjustment of rental income over the remaining term of the respective leases, including any bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market and below market in-place lease values relating to that lease would be recorded as an adjustment to rental income. The fair values of in-place leases will include estimated direct costs associated with obtaining a new tenant, and opportunity costs associated with lost rentals which are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new tenant may include commissions, tenant improvements, and other direct costs and are estimated, in part, by management’s consideration of current market costs to execute a similar lease. These direct costs will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. The value of opportunity costs will be calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These intangibles will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. The Partnership tests real estate for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Partnership will hold and operate, it compares the carrying amount of the property to the estimated probability-weighted future undiscounted cash flows expected to result from the property and its eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of the property, the Partnership recognizes an impairment loss by the amount by which the carrying amount of the property exceeds the fair value of the property. For properties held for sale, the Partnership determines whether impairment has occurred by comparing the property’s estimated fair value less cost to sell to its current carrying value. If the carrying value is greater than the net realizable value, an impairment loss is recorded to reduce the carrying value of the property to its net realizable value. For financial reporting purposes, the buildings owned by the Partnership are depreciated using the straight-line method over an estimated useful life of 25 years. Intangible lease assets are amortized using the straight-line method for financial reporting purposes based on the remaining life of the lease. The disposition of a property or classification of a property as Real Estate Held for Sale by the Partnership does not represent a strategic shift that will have a major effect on the Partnership’s operations and financial results. Therefore, the results from operating and selling the property are included in continuing operations. However, if a property was classified as Real Estate Held for Sale at December 31, 2013, the property was considered discontinued operations under prior accounting guidance. The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method. Each tenant-in-common owns a separate, undivided interest in the properties. Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests. The financial statements reflect only this Partnership's percentage share of the properties' land, building, liabilities, revenues and expenses. The Partnership's properties are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which the properties are located. These laws could require the Partnership to investigate and remediate the effects of the release or disposal of hazardous materials at these locations if found. For each property, an environmental assessment is completed prior to acquisition. In addition, the lease agreements typically strictly prohibit the production, handling, or storage of hazardous materials (except where incidental to the tenant’s business such as use of cleaning supplies) in violation of applicable law to restrict environmental and other damage. Environmental liabilities are recorded when it is determined the liability is probable and the costs can reasonably be estimated. There were no environmental issues noted or liabilities recorded at December 31, 2015 and 2014. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements As of December 31, 2015 and 2014, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis. Income Per Unit Income per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented. Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December 31, 2015 and 2014. Reportable Segments The Partnership invests in single tenant commercial properties throughout the United States that are net leased to tenants in various industries. Because these net leased properties have similar economic characteristics, the Partnership evaluates operating performance on an overall portfolio basis. Therefore, the Partnership’s properties are classified as one reportable segment. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments. |
Earnings Per Share, Policy [Policy Text Block] | Income Per Unit Income per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented. Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December 31, 2015 and 2014 |
Segment Reporting, Policy [Policy Text Block] | Reportable Segments The Partnership invests in single tenant commercial properties throughout the United States that are net leased to tenants in various industries. Because these net leased properties have similar economic characteristics, the Partnership evaluates operating performance on an overall portfolio basis. Therefore, the Partnership’s properties are classified as one reportable segment |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Related Party Transactions 2015 2014 AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners. These amounts included $2,194 of expenses related to Discontinued Operations in 2014. $ 152,838 $ 152,016 AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management. These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs. These amounts included $28,972 and $40,384 of expenses related to Discontinued Operations in 2015 and 2014, respectively. $ 69,884 $ 74,060 AEI is reimbursed for costs incurred in providing services related to the sale of property. $ 30,442 $ 0 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Properties not held for sale Property Land Buildings Total Accumulated Depreciation Advance Auto Parts, Indianapolis, IN $ 537,914 $ 706,259 $ 1,244,173 $ 255,426 Applebee’s, Crawfordsville, IN 506,030 1,350,626 1,856,656 486,225 Tractor Supply, Grand Forks, ND 238,547 1,165,327 1,403,874 417,575 Best Buy, Lake Geneva, WI 335,142 1,687,104 2,022,246 486,447 Staples, Clermont, FL 239,400 540,935 780,335 91,056 PetSmart, Galveston TX 340,000 280,048 620,048 42,474 St. Vincent Medical Clinic, Lonoke AR 170,000 898,523 1,068,523 91,350 $ 2,367,033 $ 6,628,822 $ 8,995,855 $ 1,870,553 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Acquired lease intangibles not held for sale 2015 2014 Cost Accumulated Amortization Cost Accumulated Amortization In-Place Lease Intangibles (weighted average life of 77 and 89 months, respectively) $ 418,089 $ 146,955 $ 418,089 $ 103,666 Above-Market Lease Intangibles (weighted average life of 91 and 103 months, respectively) 514,793 137,553 514,793 87,800 Acquired Intangible Lease Assets $ 932,882 $ 284,508 $ 932,882 $ 191,466 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum future rent 2016 $ 790,460 2017 804,352 2018 809,548 2019 677,289 2020 549,260 Thereafter 1,525,973 $ 5,156,882 |
Major Tenants (Tables)
Major Tenants (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Major Tenants Tenants 2015 2014 Best Buy Stores, L.P. $ 149,302 $ 148,887 Apple American Group 143,978 143,978 Tractor Supply Company 109,259 108,697 St. Vincent Health System 98,934 94,846 Advance Stores Company 92,558 87,168 Staples N/A 73,031 Aggregate rental income of major tenants $ 594,031 $ 656,607 Aggregate rental income of major tenants as a percentage of total rental income 77% 92% |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Discontinued Operations 2015 2014 Rental Income $ 1,697 $ 0 Bankruptcy Claim Payment Received 43,813 0 Property Management Expenses (28,972) (42,578) Gain on Disposal of Real Estate 21,525 0 Income (Loss) from Discontinued Operations $ 38,063 $ (42,578) |
Cash Flow, Supplemental Disclosures [Text Block] | Cash Flows from Discontinued Operations 2015 2014 Cash Flows from Discontinued Operations: Operating Activities $ 16,538 $ (42,578) Investing Activities $ 571,525 $ 0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule Of GAAP To Federal Taxable Income | Reconciliation of net income for financial reporting 2015 2014 Net Income for Financial Reporting Purposes $ 263,748 $ 183,480 Depreciation for Tax Purposes Under Depreciation and Amortization for Financial Reporting Purposes 133,637 122,119 Income Accrued for Tax Purposes Over (Under) Income for Financial Reporting Purposes (27,776) 18,344 Property Expenses for Tax Purposes (Over) Under Expenses for Financial Reporting Purposes (15,475) 5,975 Loss on Sale of Real Estate for Tax Purposes Compared to Gain for Financial Reporting Purposes (529,149) 0 Taxable Income (Loss) to Partners $ (175,015) $ 329,918 |
Schedule Of GAAP To Federal Tax Basis | Reconciliation of Partners' capital for financial reporting 2015 2014 Partners' Capital for Financial Reporting Purposes $ 8,921,387 $ 9,758,377 Adjusted Tax Basis of Investments in Real Estate Over Net Investments in Real Estate for Financial Reporting Purposes 810,909 1,206,421 Income Accrued for Tax Purposes Over Income for Financial Reporting Purposes 12,494 40,270 Property Expenses for Tax Purposes Under Expenses for Financial Reporting Purposes 0 15,475 Syndication Costs Treated as Reduction of Capital For Financial Reporting Purposes 2,418,726 2,418,726 Partners' Capital for Tax Reporting Purposes $ 12,163,516 $ 13,439,269 |
Organization (Details)
Organization (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 09, 1999 | May. 01, 1997 |
Limited Partner [Member] | |||||
Organization (Details) [Line Items] | |||||
Capital Units, Value | $ 1,000 | ||||
Limited Partners' Capital Account, Units Outstanding (in Shares) | 14,355 | 15,134 | 15,485.67 | 16,917.222 | 1,500 |
Limited Partners' Contributed Capital | $ 16,917,222 | $ (1,500,000) | |||
General Partner [Member] | |||||
Organization (Details) [Line Items] | |||||
General Partners' Contributed Capital | $ 1,000 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments. The accounting guidance for lessors is largely unchanged. The ASU is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted. It is to be adopted using a modified retrospective approach. Management is currently evaluating the impact the adoption of this guidance will have on the Partnership’s financial statements |
Building and Building Improvements [Member] | |
Summary of Significant Accounting Policies (Details) [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Related Party Transactions (Det
Related Party Transactions (Details) - Related Party Transactions - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | ||
AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners. These amounts included $2,194 of expenses related to Discontinued Operations in 2014. | $ 152,838 | $ 152,016 |
AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management. These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs. These amounts included $28,972 and $40,384 of expenses related to Discontinued Operations in 2015 and 2014, respectively. | 69,884 | 74,060 |
AEI is reimbursed for costs incurred in providing services related to the sale of property. | $ 30,442 | $ 0 |
Related Party Transactions (D24
Related Party Transactions (Details) - Related Party Transactions (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | ||
Expenses Related to Discontinued Operations | $ 2,194 | |
Expenses Related to Discontinued Operations | $ 28,972 | $ 40,384 |
Real Estate Investments (Detail
Real Estate Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2020 | |
Real Estate Investments (Details) [Line Items] | ||
Depreciation, Nonproduction | $ 265,152 | |
Leases, Acquired-in-Place [Member] | ||
Real Estate Investments (Details) [Line Items] | ||
Amortization of Intangible Assets | 43,289 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 43,289 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 32,871 | |
Above Market Leases [Member] | ||
Real Estate Investments (Details) [Line Items] | ||
Amortization of above and below Market Leases | 49,753 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 49,753 |
Real Estate Investments (Detai
Real Estate Investments (Details) - Real Estate Held for Investment | Dec. 31, 2015USD ($) |
Property, Plant and Equipment [Line Items] | |
Land | $ 2,367,033 |
Buildings | 6,628,822 |
Total | 8,995,855 |
Accumulated Depreciation | 1,870,553 |
Advance Auto Parts Indianapolis IN | |
Property, Plant and Equipment [Line Items] | |
Land | 537,914 |
Buildings | 706,259 |
Total | 1,244,173 |
Accumulated Depreciation | 255,426 |
Applebees Crawfordsville IN | |
Property, Plant and Equipment [Line Items] | |
Land | 506,030 |
Buildings | 1,350,626 |
Total | 1,856,656 |
Accumulated Depreciation | 486,225 |
Tractor Supply Grand Forks ND | |
Property, Plant and Equipment [Line Items] | |
Land | 238,547 |
Buildings | 1,165,327 |
Total | 1,403,874 |
Accumulated Depreciation | 417,575 |
Best Buy Lake Geneva WI | |
Property, Plant and Equipment [Line Items] | |
Land | 335,142 |
Buildings | 1,687,104 |
Total | 2,022,246 |
Accumulated Depreciation | 486,447 |
Staples Clermont FL | |
Property, Plant and Equipment [Line Items] | |
Land | 239,400 |
Buildings | 540,935 |
Total | 780,335 |
Accumulated Depreciation | 91,056 |
PetSmart Galveston TX | |
Property, Plant and Equipment [Line Items] | |
Land | 340,000 |
Buildings | 280,048 |
Total | 620,048 |
Accumulated Depreciation | 42,474 |
St Vincent Lonoke AR | |
Property, Plant and Equipment [Line Items] | |
Land | 170,000 |
Buildings | 898,523 |
Total | 1,068,523 |
Accumulated Depreciation | $ 91,350 |
Real Estate Investments (Det27
Real Estate Investments (Details) - Acquired Lease Intangibles - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Intangible Lease Assets | $ 932,882 | $ 932,882 |
Lease Intangibles Accumulated Amortization | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
In-Place Lease Intangibles (weighted average life of 77 and 89 months, respectively) | 146,955 | 103,666 |
Above-Market Lease Intangibles (weighted average life of 91 and 103 months, respectively) | 137,553 | 87,800 |
Acquired Intangible Lease Assets | 284,508 | 191,466 |
Leases, Acquired-in-Place [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
In-Place Lease Intangibles (weighted average life of 77 and 89 months, respectively) | 418,089 | 418,089 |
Above Market Leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Above-Market Lease Intangibles (weighted average life of 91 and 103 months, respectively) | $ 514,793 | $ 514,793 |
Real Estate Investments (Det28
Real Estate Investments (Details) - Acquired Lease Intangibles (Parentheticals) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Leases, Acquired-in-Place [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average life | 77 months | 89 months |
Above Market Leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average life | 91 months | 103 months |
Real Estate Investments (Det29
Real Estate Investments (Details) - Minimum Future Payments | Dec. 31, 2015USD ($) |
Minimum Future Payments [Abstract] | |
2,016 | $ 790,460 |
2,017 | 804,352 |
2,018 | 809,548 |
2,019 | 677,289 |
2,020 | 549,260 |
Thereafter | 1,525,973 |
$ 5,156,882 |
Major Tenants (Details) - Major
Major Tenants (Details) - Major Tenants - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | ||
Major Tenants | $ 594,031 | $ 656,607 |
Aggregate rental income of major tenants as a percentage of total rental income | 77.00% | 92.00% |
Best Buy Stores LP | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | $ 149,302 | $ 148,887 |
Apple American Group | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | 143,978 | 143,978 |
Tractor Supply Company | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | 109,259 | 108,697 |
St. Vincent Health System | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | 98,934 | 94,846 |
Advance Stores Company | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | $ 92,558 | 87,168 |
Staples | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | $ 73,031 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | Jun. 19, 2015 | Dec. 31, 2015 | Aug. 01, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Mar. 27, 2014 |
Discontinued Operations (Details) [Line Items] | ||||||
Bankruptcy Claims, Amount of Claims Settled | $ 43,813 | $ 0 | ||||
Johnny Carinos Longmont CO | ||||||
Discontinued Operations (Details) [Line Items] | ||||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | $ 31,212 | |||||
Bankruptcy Claims, Amount of Claims Settled | $ 43,813 | $ 8,555 | ||||
Disposal Date | Jun. 19, 2015 | |||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, before Income Tax | $ 21,525 | |||||
Property, Plant, and Equipment, Fair Value Disclosure | 550,000 | |||||
Hollywood Video Minot ND | ||||||
Discontinued Operations (Details) [Line Items] | ||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 571,525 |
Discontinued Operations (Deta32
Discontinued Operations (Details) - Discontinued Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Discontinued Operations [Abstract] | ||
Rental Income | $ 1,697 | $ 0 |
Bankruptcy Claim Payment Received | 43,813 | 0 |
Property Management Expenses | (28,972) | (42,578) |
Gain on Disposal of Real Estate | 21,525 | 0 |
Income (Loss) from Discontinued Operations | $ 38,063 | $ (42,578) |
Discontinued Operations (Deta33
Discontinued Operations (Details) - Cash Flows from Discontinued Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Discontinued Operations: | ||
Operating Activities | $ 16,538 | $ (42,578) |
Investing Activities | $ 571,525 | $ 0 |
Partners' Capital (Details)
Partners' Capital (Details) | Oct. 01, 2014USD ($)shares | Apr. 01, 2014USD ($)shares | Dec. 31, 2015USD ($)$ / shares$ / itemshares | Dec. 31, 2014USD ($)$ / shares$ / itemshares |
Partners' Capital (Details) [Line Items] | ||||
Partners' Capital Account, Distributions | $ 556,489 | $ 587,005 | ||
SaleProceedsDistributionMadeToMemberOrLimitedPartner | 30,303 | 50,505 | ||
Partners' Capital Account, Redemptions | 544,249 | 238,406 | ||
Limited Partner [Member] | ||||
Partners' Capital (Details) [Line Items] | ||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | $ 540,400 | $ 570,405 | ||
Distributions Per Limited Partnership Unit Outstanding, Basic (in Dollars per share) | $ / shares | $ 36.78 | $ 37.07 | ||
Weighted Average Limited Partnership Units Outstanding, Basic (in Shares) | shares | 14,692 | 15,388 | ||
DistributionsPerUnitOfNetIncome (in Dollars per Item) | $ / item | 16.20 | 10.70 | ||
DistributionsPerUnitOfReturnOfCapital (in Dollars per Item) | $ / item | 20.58 | 26.37 | ||
SaleProceedsDistributionMadeToMemberOrLimitedPartner | $ 30,000 | $ 50,000 | ||
Sale Proceeds Distribution Made to Limited Partner Per Unit | $ 2.05 | $ 3.23 | ||
Partners' Capital Account, Units, Redeemed (in Shares) | shares | 331.41 | 20 | 779.60 | 351.41 |
Partners' Capital Account, Redemptions | $ 222,207 | $ 13,536 | $ 538,806 | $ 235,743 |
General Partner [Member] | ||||
Partners' Capital (Details) [Line Items] | ||||
General Partners' Capital Account, Period Distribution Amount | 16,089 | 16,600 | ||
SaleProceedsDistributionMadeToMemberOrLimitedPartner | 303 | 505 | ||
Partners' Capital Account, Redemptions | 5,443 | 2,663 | ||
GeneralPartnerDistributionsFromRedemptions | $ 5,443 | $ 2,663 |
Income Taxes (Details) - Federa
Income Taxes (Details) - Federal Taxable Income Reconciliation - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Federal Taxable Income Reconciliation [Abstract] | ||
Net Income for Financial Reporting Purposes | $ 263,748 | $ 183,480 |
Depreciation for Tax Purposes Under Depreciation and Amortization for Financial Reporting Purposes | 133,637 | 122,119 |
Income Accrued for Tax Purposes Over (Under) Income for Financial Reporting Purposes | (27,776) | 18,344 |
Property Expenses for Tax Purposes (Over) Under Expenses for Financial Reporting Purposes | (15,475) | 5,975 |
Loss on Sale of Real Estate for Tax Purposes Compared to Gain for Financial Reporting Purposes | (529,149) | 0 |
Taxable Income (Loss) to Partners | $ (175,015) | $ 329,918 |
Income Taxes (Details) - Fede36
Income Taxes (Details) - Federal Tax Partners' Capital - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Federal Tax Partners' Capital [Abstract] | ||
Partners' Capital for Financial Reporting Purposes | $ 8,921,387 | $ 9,758,377 |
Adjusted Tax Basis of Investments in Real Estate Over Net Investments in Real Estate for Financial Reporting Purposes | 810,909 | 1,206,421 |
Income Accrued for Tax Purposes Over Income for Financial Reporting Purposes | 12,494 | 40,270 |
Property Expenses for Tax Purposes Under Expenses for Financial Reporting Purposes | 0 | 15,475 |
Syndication Costs Treated as Reduction of Capital For Financial Reporting Purposes | 2,418,726 | 2,418,726 |
Partners' Capital for Tax Reporting Purposes | $ 12,163,516 | $ 13,439,269 |