Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2021shares | |
Document Information Line Items | |
Entity Registrant Name | AEI INCOME & GROWTH FUND 26 LLC |
Document Type | 10-Q |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 1,678,443.2 |
Amendment Flag | false |
Entity Central Index Key | 0001326321 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Document Period End Date | Sep. 30, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q3 |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Quarterly Report | true |
Entity File Number | 000-51823 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 41-2173048 |
Entity Address, Address Line One | 30 East 7th Street, Suite 1300 |
Entity Address, City or Town | St. Paul |
Entity Address, State or Province | MN |
Entity Address, Postal Zip Code | 55101 |
City Area Code | 651 |
Local Phone Number | 227-7333 |
Entity Information, Former Legal or Registered Name | Not Applicable |
No Trading Symbol Flag | true |
Security Exchange Name | NONE |
Title of 12(g) Security | Limited Liability Company Units |
Entity Interactive Data Current | Yes |
Document Transition Report | false |
Balance Sheet
Balance Sheet - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash | $ 1,223,788 | $ 1,355,227 |
Rent Receivable | 6,453 | 17,747 |
Total Current Assets | 1,230,241 | 1,372,974 |
Real Estate Investments: | ||
Land | 2,829,432 | 2,848,286 |
Buildings | 7,156,951 | 7,714,695 |
Acquired Intangible Lease Assets | 808,152 | 808,152 |
Real Estate Held for Investment, at cost | 10,794,535 | 11,371,133 |
Accumulated Depreciation and Amortization | (3,436,920) | (3,651,340) |
Real Estate Held for Investment, Net | 7,357,615 | 7,719,793 |
Long-Term Rent Receivable | 0 | 1,613 |
Total Assets | 8,587,856 | 9,094,380 |
Current Liabilities: | ||
Payable to AEI Fund Management, Inc. | 92,088 | 53,953 |
Distributions Payable | 92,886 | 94,433 |
Total Current Liabilities | 184,974 | 148,386 |
Long-Term Liabilities: | ||
Acquired Below-Market Lease Intangibles, Net | 118,319 | 140,507 |
Members’ Equity: | ||
Managing Members | (108,274) | (92,647) |
Limited Members – 10,000,000 Units authorized; 1,678,443.2 and 1,738,006.0 Units issued and outstanding as of 9/30/2021 and 12/31/2020 | 8,392,837 | 8,898,134 |
Total Members’ Equity | 8,284,563 | 8,805,487 |
Total Liabilities and Members’ Equity | $ 8,587,856 | $ 9,094,380 |
Balance Sheet (Parentheticals)
Balance Sheet (Parentheticals) - Limited Partner [Member] - shares | Sep. 30, 2021 | Dec. 31, 2020 |
Limited Members, units authorized | 10,000,000 | 10,000,000 |
Limited Members, units issued | 1,678,443.2 | 1,738,006 |
Limited Members, units outstanding | 1,678,443.2 | 1,738,006 |
Statement of Operations
Statement of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Rental Income | $ 166,502 | $ 165,870 | $ 499,069 | $ 497,193 |
Expenses: | ||||
LLC Administration – Affiliates | 35,233 | 27,189 | 99,605 | 81,936 |
LLC Administration and Property Management – Unrelated Parties | 17,604 | 21,279 | 68,811 | 78,932 |
Depreciation and Amortization | 91,332 | 95,130 | 276,033 | 284,844 |
Total Expenses | 144,169 | 143,598 | 444,449 | 445,712 |
Operating Income | 22,333 | 22,272 | 54,620 | 51,481 |
Other Income: | ||||
Gain on Sale of Real Estate | 0 | 0 | 18,606 | 0 |
Interest Income | 285 | 328 | 866 | 3,105 |
Total Other Income | 285 | 328 | 19,472 | 3,105 |
Net Income | 22,618 | 22,600 | 74,092 | 54,586 |
Net Income Allocated: | ||||
Managing Members | 679 | 678 | 2,223 | 1,638 |
Limited Members | $ 21,939 | $ 21,922 | $ 71,869 | $ 52,948 |
Net Income per LLC Unit (in Dollars per share) | $ 0.01 | $ 0.01 | $ 0.04 | $ 0.03 |
Weighted Average Units Outstanding – Basic and Diluted (in Shares) | 1,678,443 | 1,738,006 | 1,698,297 | 1,738,006 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | $ 74,092 | $ 54,586 |
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 259,527 | 268,338 |
Gain on Sale of Real Estate | (18,606) | 0 |
(Increase) Decrease in Rent Receivable | 12,907 | (19,360) |
Increase (Decrease) in Payable to AEI Fund Management, Inc. | 38,135 | (11,825) |
Increase (Decrease) in Unearned Rent | 0 | (420) |
Total Adjustments | 291,963 | 236,733 |
Net Cash Provided By (Used For) Operating Activities | 366,055 | 291,319 |
Cash Flows from Investing Activities: | ||
Proceeds from Sale of Real Estate | 99,069 | 0 |
Cash Flows from Financing Activities: | ||
Distributions Paid to Members | (281,752) | (283,298) |
Repurchase of LLC Units | (314,811) | 0 |
Net Cash Provided By (Used For) Investing Activities | (596,563) | (283,298) |
Net Increase (Decrease) in Cash | (131,439) | 8,021 |
Cash, beginning of period | 1,355,227 | 1,331,120 |
Cash, end of period | $ 1,223,788 | $ 1,339,141 |
Statement of Changes in Members
Statement of Changes in Members' Equity - USD ($) | General Partner [Member] | Limited Partner [Member] | Total |
Balance at Dec. 31, 2019 | $ (80,397) | $ 9,294,214 | $ 9,213,817 |
Balance (in Shares) at Dec. 31, 2019 | 1,738,006 | ||
Balance at Mar. 31, 2020 | (83,092) | $ 9,207,081 | 9,123,989 |
Balance (in Shares) at Mar. 31, 2020 | 1,738,006 | ||
Distributions Declared | (2,833) | $ (91,599) | (94,432) |
Net Income | 138 | 4,466 | 4,604 |
Balance at Dec. 31, 2019 | (80,397) | $ 9,294,214 | 9,213,817 |
Balance (in Shares) at Dec. 31, 2019 | 1,738,006 | ||
Balance at Sep. 30, 2020 | (87,258) | $ 9,072,364 | 8,985,106 |
Balance (in Shares) at Sep. 30, 2020 | 1,738,006 | ||
Distributions Declared | (8,499) | $ (274,798) | (283,297) |
Net Income | 54,586 | ||
Balance at Mar. 31, 2020 | (83,092) | $ 9,207,081 | 9,123,989 |
Balance (in Shares) at Mar. 31, 2020 | 1,738,006 | ||
Balance at Jun. 30, 2020 | (85,103) | $ 9,142,042 | 9,056,939 |
Balance (in Shares) at Jun. 30, 2020 | 1,738,006 | ||
Distributions Declared | (2,833) | $ (91,599) | (94,432) |
Net Income | 822 | 26,560 | 27,382 |
Balance at Sep. 30, 2020 | (87,258) | $ 9,072,364 | 8,985,106 |
Balance (in Shares) at Sep. 30, 2020 | 1,738,006 | ||
Distributions Declared | (2,833) | $ (91,600) | (94,433) |
Net Income | 678 | 21,922 | 22,600 |
Balance at Dec. 31, 2020 | (92,647) | $ 8,898,134 | 8,805,487 |
Balance (in Shares) at Dec. 31, 2020 | 1,738,006 | ||
Balance at Mar. 31, 2021 | (94,998) | $ 8,822,107 | 8,727,109 |
Balance (in Shares) at Mar. 31, 2021 | 1,738,006 | ||
Distributions Declared | (2,833) | $ (91,600) | (94,433) |
Net Income | 482 | 15,573 | 16,055 |
Balance at Dec. 31, 2020 | (92,647) | $ 8,898,134 | 8,805,487 |
Balance (in Shares) at Dec. 31, 2020 | 1,738,006 | ||
Balance at Sep. 30, 2021 | (108,274) | $ 8,392,837 | 8,284,563 |
Balance (in Shares) at Sep. 30, 2021 | 1,678,443.2 | ||
Distributions Declared | (8,406) | $ (271,799) | (280,205) |
Repurchase of LLC Units | (9,444) | $ (305,367) | |
Units Repurchased (in Shares) | (59,562.8) | ||
Net Income | 74,092 | ||
Balance at Mar. 31, 2021 | (94,998) | $ 8,822,107 | 8,727,109 |
Balance (in Shares) at Mar. 31, 2021 | 1,738,006 | ||
Balance at Jun. 30, 2021 | (106,166) | $ 8,460,997 | 8,354,831 |
Balance (in Shares) at Jun. 30, 2021 | 1,678,443.2 | ||
Distributions Declared | (2,786) | $ (90,100) | (92,886) |
Repurchase of LLC Units | (9,444) | $ (305,367) | (314,811) |
Units Repurchased (in Shares) | (59,562.8) | ||
Net Income | 1,062 | $ 34,357 | 35,419 |
Balance at Sep. 30, 2021 | (108,274) | $ 8,392,837 | 8,284,563 |
Balance (in Shares) at Sep. 30, 2021 | 1,678,443.2 | ||
Distributions Declared | (2,787) | $ (90,099) | (92,886) |
Net Income | $ 679 | $ 21,939 | $ 22,618 |
Basis of Accounting
Basis of Accounting | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting [Text Block] | (1) The condensed statements included herein have been prepared by the registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results of operations for the interim period, on a basis consistent with the annual audited statements. The adjustments made to these condensed statements consist only of normal recurring adjustments. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) have been condensed or omitted pursuant to such rules and regulations, although the registrant believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the summary of significant accounting policies and notes thereto included in the registrant’s latest annual report on Form 10K. |
Organization
Organization | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | (2) Organization – AEI Income & Growth Fund 26 LLC (“Company”), a Limited Liability Company, was formed on March 14, 2005 to acquire and lease commercial properties to operating tenants. The Company's operations are managed by AEI Fund Management XXI, Inc. (“AFM”), the Managing Member. Robert P. Johnson, the previous Chief Executive Officer and sole director of AFM, served as the Special Managing Member until his withdrawal date effective March 31, 2020. AFM is a wholly owned subsidiary of AEI Capital Corporation of which the Estate of Robert Johnson and Patricia Johnson, the wife of the deceased, own a majority interest. AEI Fund Management, Inc. (“AEI”), an affiliate of AFM, performs the administrative and operating functions for the Company. The terms of the offering called for a subscription price of $10 per LLC Unit, payable on acceptance of the offer. The Company commenced operations on April 3, 2006 when minimum subscriptions of 150,000 LLC Units ($1,500,000) were accepted. The offering terminated October 19, 2007, when the extended offering period ended. The Company received subscriptions for 1,832,736 Units. Under the terms of the Operating Agreement, the Limited Members and Managing Members contributed funds of $18,327,360 and $1,000, respectively. The Company shall continue until December 31, 2055, unless dissolved, terminated and liquidated prior to that date. During operations, any Net Cash Flow, as defined, which the Managing Members determine to distribute will be distributed 97% to the Limited Members and 3% to the Managing Members. Distributions to Limited Members will be made pro rata by Units. Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the Managing Members determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Members and 1% to the Managing Members until the Limited Members receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 6.5% 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 Members and 10% to the Managing Members. Distributions to the Limited Members 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 97% to the Limited Members and 3% to the Managing Members. Net losses from operations will be allocated 99% to the Limited Members and 1% to the Managing Members. For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Operating Agreement as follows: (i) first, to those Members with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Members and 1% to the Managing Members until the aggregate balance in the Limited Members' capital accounts equals the sum of the Limited Members' Adjusted Capital Contributions plus an amount equal to 6.5% 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 Members and 10% to the Managing Members. Losses will be allocated 99% to the Limited Members and 1% to the Managing Members. The Managing Members are not required to currently fund a deficit capital balance. Upon liquidation of the Company or withdrawal by a Managing Member, the Managing Members will contribute to the Company an amount equal to the lesser of the deficit balances in their capital accounts or 1.01% of the total capital contributions of the Limited Members over the amount previously contributed by the Managing Members. In August 2021, the Managing Member mailed a Consent Statement (Proxy) seeking the consent of the Limited Members, as required by Section 6.1 of the Operating Agreement, to initiate the final disposition, liquidation and distribution of all of the Company’s properties and assets within the next 12 to 24 months. On October 12, 2021, the proposal was approved with a majority of Units voting in favor of the proposal. As a result, the Managing Member is proceeding with the planned liquidation of the Company. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | (3) Recently Issued Accounting Pronouncements – In April 2020, the Financial Accounting Standards Board (FASB) issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant or if a lease concession was under the enforceable rights and obligations within the existing lease agreement. The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under current lease guidance. Instead, an entity that elects not to evaluate whether a concession directly related to COVID-19 is a modification can then elect whether to apply the modification guidance. During the year ended December 31, 2020, the Company provided lease concessions to certain tenants in response to the impact of COVID-19, in the form of rent deferrals. The Company has made an election to account for such lease concessions consistent with how those concessions would be accounted for under lease guidance if enforceable rights and obligations for those concessions had already existed in the leases. This election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights as lessor, including concessions that result in the total payments required by the modified lease being substantially the same as or less than total payments required by the original lease. Substantially, all of the Company’s concessions to date provide for a deferral of payments with no substantive changes to the consideration in the original lease. These deferrals affect the timing, but not the amount, of the lease payments. The Company is accounting for these deferrals as if no changes to the lease were made. Under this accounting, the Company increases its rent receivables as tenant payments accrue and continues to recognize rental income. During the year ended December 31, 2020, the Company has entered into lease modifications that deferred $19,360, which was recognized as rental income for those deferred months in 2020. The rent receivable related to these rental deferrals is $6,453 as of September 30, 2021. |
Real Estate Investments
Real Estate Investments | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Real Estate Disclosure [Text Block] | (4) Real Estate Investments – The Company owns a 40% interest in a former Sports Authority store in Wichita, Kansas. On March 2, 2016, the tenant, TSA Stores, Inc., and its parent company, The Sports Authority, Inc., the guarantor of the lease, filed for Chapter 11 bankruptcy reorganization. In June 2016, the tenant filed a motion with the bankruptcy court to reject the lease for this store effective June 30, 2016, at which time the tenant returned possession of the property to the owners. As of December 31, 2020, the tenant owed $19,366 of past due rent, which was not accrued for financial reporting purposes. On March 23, 2021, a motion to dismiss the bankruptcy case was issued by a federal judge to The Sports Authority, Inc., the Company will therefore not be receiving any of the past due rent. The owners listed the property for lease with a real estate broker in the Wichita area. While the property was vacant, the Company was responsible for its 40% share of real estate taxes and other costs associated with maintaining the property. On September 21, 2017, the Company entered into a lease agreement with a primary term of 10 years with Biomat USA, Inc. (“Biomat”) as a replacement tenant for 28% of the square footage of the property. The tenant operates a Biomat USA Plasma Center in the space. The Company’s 40% share of annual rent, which commenced on June 18, 2018, is $37,071. Biomat agreed to pay for the costs to divide the building into two separate spaces, the costs of tenant improvements to remodel the Biomat space and 28% of the cost to replace the roof. On August 27, 2019, the Company entered into a lease agreement with a primary term of 10 years with BigTime Fun Center, LLC as a replacement tenant for 57% of the square footage of the property. The tenant will operate an indoor sports entertainment center in the space. The Company’s 40% share of annual rent, which was to commence on February 23, 2020, is $78,000. As part of the agreement, the Company was to pay a tenant improvement allowance of $64,000 when certain conditions are met by the tenant. Due to ongoing difficulties due to the COVID-19 Pandemic the Company was negotiating a rent commencement date of April 1, 2021. As a part of the negotiations the tenant improvement allowance was to be replaced with a ten month rent abatement starting April 1, 2021. Additionally, this agreement would forebear rent and additional charges for the period from February 23, 2020 to March 31, 2021. In September 2019, the Company paid $32,760 to a real estate broker for its 40% share of the lease commission due as part of the lease transaction. This amount was capitalized and will be amortized over the term of the lease. On January 22, 2021 the owner of Big Time Fun Center, LLC informed the Company that it does not intend to open the Wichita property. As a result of the tenant informing the Company of their intention not to open, the full amount of the lease commission was amortized in the fourth quarter of 2020. The property is currently being marketed for lease with a real estate broker in the Wichita area. The Company owned a 55% interest in an Advance Auto Parts store in Middletown, Ohio. The remaining interest in the property was owned by an affiliate of the Company. On July 31, 2019, the lease term ended, and the tenant returned possession of the property to the owners. While the property was vacant, the Company was responsible for its 55% share of real estate taxes and other costs associated with maintaining the property. The owners have listed the property for sale or lease with a real estate broker in the Middletown area. The annual rent from this property represented approximately 11% of the total annual rent of the Company’s property portfolio. The loss of rent and increased expenses related to this property will decrease the Company’s cash flow. Based on its long-lived asset valuation analysis, the Company determined the Advance Auto store was impaired. Based on its long-lived asset valuation analysis in the fourth quarter of 2020, the Company recognized a real estate impairment of $78,376 to decrease the carrying value to the estimated fair value of $82,500. The charge was recorded against the cost of the land and building. In April 2021, the Company entered into an agreement to sell its 55% interest in the Advance Auto Parts store in Middletown, Ohio to an unrelated third party. On June 29, 2021, the sale closed with the Company receiving net proceeds of $99,069, which resulted in a gain of $18,606. At the time of sale, the cost and related accumulated depreciation and amortization was $576,598 and $496,135, respectively. In November 2021, the Company entered into an agreement to sell its Dollar Tree store in West Point, Mississippi to an unrelated third party. The sale is subject to contingencies and may not be completed. If the sale is completed, the Company expects to receive net proceeds of approximately $1,591,000, which will result in a net gain of approximately $332,000. |
Payable to AEI Fund Management,
Payable to AEI Fund Management, Inc. | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | (5) Payable to AEI Fund Management, Inc. – AEI Fund Management, Inc. performs the administrative and operating functions for the Company. The payable to AEI Fund Management represents the balance due for those services. This balance is non-interest bearing and unsecured and is to be paid in the normal course of business. |
Members' Equity
Members' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Members' Equity Notes Disclosure [Text Block] | (6) Members’ Equity – For the nine months ended September 30, 2021 and 2020, the Company declared distributions of $280,205 and $283,297, respectively. The Limited Members were allocated distributions of $271,799 and $274,798 and the Managing Members were allocated distributions of $8,406 and $8,499 for the periods, respectively. The Limited Members' distributions represented $0.16 per LLC Unit outstanding using 1,698,297 and 1,738,006 weighted average Units in 2021 and 2020, respectively. The distributions represented $0.04 and $0.03 per Unit of Net Income and $0.12 and $0.13 per Unit of return of contributed capital in 2021 and 2020, respectively. For the nine months ended September 30, 2021, the Company repurchased a total of 59,562.8 Units for $305,367 from eight Limited Members in accordance with the Operating Agreement. The Company acquired these Units using net sales proceeds. For the nine months ended September 30, 2020, the Company did not repurchase any Units from the Limited Members. The repurchases increase the remaining Limited Members’ ownership interest in the Company. As a result of these repurchases and pursuant to the Operating Agreement, the Managing Members received distributions of $9,444 in 2021. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | (7) Fair Value Measurements – Fair value, as defined by US GAAP, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. US GAAP establishes a hierarchy in determining the fair value of an asset or liability. The fair value hierarchy has three levels of inputs, both observable and unobservable. US GAAP requires the utilization of the lowest possible level of input to determine fair value. Level 1 inputs include quoted market prices in an active market for identical assets or liabilities. Level 2 inputs are market data, other than Level 1 inputs, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 inputs are unobservable and corroborated by little or no market data. At September 30, 2021 and December 31, 2020, the Company had no financial assets or liabilities measured at fair value on a recurring basis or nonrecurring basis that would require disclosure. The Company had the following nonfinancial assets measured on a nonrecurring basis that were recorded at fair value during 2020. At December 31, 2020, the Advance Auto store in Middletown, Ohio was written down to its estimated fair value of $82,500 after completing our long-lived asset valuation analysis. The resulting impairment charge of $78,376 was included in earnings for the fourth quarter of 2020. The fair value of the property was based upon comparable sales of similar properties, which are considered Level 2 inputs in the valuation hierarchy. |
COVID-19 Outbreak
COVID-19 Outbreak | 9 Months Ended |
Sep. 30, 2021 | |
Coronavirus Outbreak Policy [Abstract] | |
CoronavirusOutbreakPolicyTextBlock | (8) COVID-19 Outbreak – During the first quarter of 2020, there was a global outbreak of COVID-19 which continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The global impact of the outbreak has been rapidly evolving, and as cases of the virus have continued to be identified in additional countries, many countries have reacted by instituting quarantines, placing restrictions on travel, and limiting hours of operations of non-essential offices and retail centers. Such actions are creating disruption in global supply chains, and adversely impacting a number of industries, such as retail, restaurants and transportation. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19. Nevertheless, COVID19 presents material uncertainty and risk with respect to the Company’s performance and financial results, such as the potential negative impact to the tenants of its properties, the potential closure of certain of its properties, increased costs of operations, decrease in values of its properties, changes in law and/or regulation, and uncertainty regarding government and regulatory policy. Up to the date of this filing, the Company has entered into a rent deferral agreement with one tenant of the six properties owned by the Company. In June 2020, the Company entered into an agreement with the tenant of the Zales store in Enid, Oklahoma to defer base rent in April and May 2020. The tenant started paying the deferred amounts in twelve equal monthly installments beginning on February 1, 2021. The Company has elected not to account for these deferrals of rent as a lease modification under COVID-19 guidance issued by the FASB. Deferred rent of $19,360 was recognized as rental income during the year ended December 31, 2020 and a corresponding rent receivable was recorded. The rent receivable related to these rental deferrals is $6,453 as of September 30, 2021. The Company continues to work closely with tenants to determine the best course of action to meet the tenants short-term rental needs during these unprecedented times. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Distribution Policy, Members or Limited Partners, Description | During operations, any Net Cash Flow, as defined, which the Managing Members determine to distribute will be distributed 97% to the Limited Members and 3% to the Managing Members. Distributions to Limited Members will be made pro rata by Units. Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the Managing Members determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Members and 1% to the Managing Members until the Limited Members receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 6.5% 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 Members and 10% to the Managing Members. Distributions to the Limited Members will be made pro rata by Units. |
Key Provisions of Operating or Partnership Agreement, Description | For tax purposes, profits from operations, other than profits attributable to the sale, exchange, financing, refinancing or other disposition of property, will be allocated 97% to the Limited Members and 3% to the Managing Members. Net losses from operations will be allocated 99% to the Limited Members and 1% to the Managing Members. For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Operating Agreement as follows: (i) first, to those Members with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Members and 1% to the Managing Members until the aggregate balance in the Limited Members' capital accounts equals the sum of the Limited Members' Adjusted Capital Contributions plus an amount equal to 6.5% 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 Members and 10% to the Managing Members. Losses will be allocated 99% to the Limited Members and 1% to the Managing Members. The Managing Members are not required to currently fund a deficit capital balance. Upon liquidation of the Company or withdrawal by a Managing Member, the Managing Members will contribute to the Company an amount equal to the lesser of the deficit balances in their capital accounts or 1.01% of the total capital contributions of the Limited Members over the amount previously contributed by the Managing Members. |
New Accounting Pronouncement or Change in Accounting Principle, Description | In April 2020, the Financial Accounting Standards Board (FASB) issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant or if a lease concession was under the enforceable rights and obligations within the existing lease agreement. The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under current lease guidance. Instead, an entity that elects not to evaluate whether a concession directly related to COVID-19 is a modification can then elect whether to apply the modification guidance. During the year ended December 31, 2020, the Company provided lease concessions to certain tenants in response to the impact of COVID-19, in the form of rent deferrals. The Company has made an election to account for such lease concessions consistent with how those concessions would be accounted for under lease guidance if enforceable rights and obligations for those concessions had already existed in the leases. This election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights as lessor, including concessions that result in the total payments required by the modified lease being substantially the same as or less than total payments required by the original lease. Substantially, all of the Company’s concessions to date provide for a deferral of payments with no substantive changes to the consideration in the original lease. These deferrals affect the timing, but not the amount, of the lease payments. The Company is accounting for these deferrals as if no changes to the lease were made. Under this accounting, the Company increases its rent receivables as tenant payments accrue and continues to recognize rental income. During the year ended December 31, 2020, the Company has entered into lease modifications that deferred $19,360, which was recognized as rental income for those deferred months in 2020. The rent receivable related to these rental deferrals is $6,453 as of September 30, 2021. |
CoronavirusOutbreakTextBlock | During the first quarter of 2020, there was a global outbreak of COVID-19 which continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The global impact of the outbreak has been rapidly evolving, and as cases of the virus have continued to be identified in additional countries, many countries have reacted by instituting quarantines, placing restrictions on travel, and limiting hours of operations of non-essential offices and retail centers. Such actions are creating disruption in global supply chains, and adversely impacting a number of industries, such as retail, restaurants and transportation. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19. Nevertheless, COVID19 presents material uncertainty and risk with respect to the Company’s performance and financial results, such as the potential negative impact to the tenants of its properties, the potential closure of certain of its properties, increased costs of operations, decrease in values of its properties, changes in law and/or regulation, and uncertainty regarding government and regulatory policy. Up to the date of this filing, the Company has entered into a rent deferral agreement with one tenant of the six properties owned by the Company. In June 2020, the Company entered into an agreement with the tenant of the Zales store in Enid, Oklahoma to defer base rent in April and May 2020. The tenant started paying the deferred amounts in twelve equal monthly installments beginning on February 1, 2021. The Company has elected not to account for these deferrals of rent as a lease modification under COVID-19 guidance issued by the FASB. Deferred rent of $19,360 was recognized as rental income during the year ended December 31, 2020 and a corresponding rent receivable was recorded. The rent receivable related to these rental deferrals is $6,453 as of September 30, 2021. The Company continues to work closely with tenants to determine the best course of action to meet the tenants short-term rental needs during these unprecedented times. |
Organization (Details)
Organization (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Oct. 19, 2007 | Apr. 03, 2006 |
Limited Partner [Member] | ||||||||||
Organization (Details) [Line Items] | ||||||||||
Capital Units, Value | $ 10 | |||||||||
Limited Partners' Capital Account, Units Outstanding (in Shares) | 1,678,443.2 | 1,678,443.2 | 1,738,006 | 1,738,006 | 1,738,006 | 1,738,006 | 1,738,006 | 1,738,006 | 1,832,736 | 150,000 |
Limited Partners' Contributed Capital | $ 18,327,360 | $ 1,500,000 | ||||||||
General Partner [Member] | ||||||||||
Organization (Details) [Line Items] | ||||||||||
General Partners' Contributed Capital | $ 1,000 |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Deferred Rent Receivables, Net | $ 6,453 | $ 19,360 |
Real Estate Investments (Detail
Real Estate Investments (Details) - USD ($) | Jun. 29, 2021 | Sep. 01, 2019 | Aug. 27, 2019 | Sep. 21, 2017 | Dec. 31, 2020 | Feb. 22, 2021 | Jun. 17, 2019 |
Biomat USA Plasma Center Wichita KS | |||||||
Real Estate Investments (Details) [Line Items] | |||||||
Average Lease Term | On September 21, 2017, the Company entered into a lease agreement with a primary term of 10 years with Biomat USA, Inc. (“Biomat”) as a replacement tenant for 28% of the square footage of the property. | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 37,071 | ||||||
BigTime Fun Wichita KS | |||||||
Real Estate Investments (Details) [Line Items] | |||||||
Average Lease Term | On August 27, 2019, the Company entered into a lease agreement with a primary term of 10 years with BigTime Fun Center, LLC as a replacement tenant for 57% of the square footage of the property. | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 78,000 | ||||||
Payments for Tenant Improvements | $ 64,000 | ||||||
Payments for Lease Commissions | $ 32,760 | ||||||
Advance Auto Middletown OH | |||||||
Real Estate Investments (Details) [Line Items] | |||||||
Impairment of Real Estate | $ 78,376 | ||||||
Property, Plant, and Equipment, Fair Value Disclosure | $ 82,500 | ||||||
Disposal Date | Jun. 29, 2021 | ||||||
Proceeds from Sale of Real Estate | $ 99,069 | ||||||
Gain (Loss) on Disposition of Assets | 18,606 | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Cost of Investment in Real Estate Sold | 576,598 | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation | $ 496,135 |
Members' Equity (Details)
Members' Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Members' Equity (Details) [Line Items] | ||||||||
Distribution Made to Limited Partner, Cash Distributions Declared | $ 92,886 | $ 92,886 | $ 94,433 | $ 94,433 | $ 94,432 | $ 94,432 | $ 280,205 | $ 283,297 |
Partners' Capital Account, Redemptions | 314,811 | |||||||
Limited Partner [Member] | ||||||||
Members' Equity (Details) [Line Items] | ||||||||
Distribution Made to Limited Partner, Cash Distributions Declared | 90,099 | $ 90,100 | 91,600 | 91,600 | 91,599 | 91,599 | $ 271,799 | $ 274,798 |
Distribution Made to Limited Partner, Distributions Declared, Per Unit (in Dollars per share) | $ 0.16 | $ 0.16 | ||||||
Weighted Average Limited Partnership Units Outstanding, Basic (in Shares) | 1,698,297 | 1,738,006 | ||||||
DistributionsPerUnitOfNetIncome (in Dollars per share) | $ 0.04 | $ 0.03 | ||||||
DistributionsPerUnitOfReturnOfCapital (in Dollars per share) | $ 0.12 | $ 0.13 | ||||||
Partners' Capital Account, Units, Redeemed (in Shares) | 59,562.8 | 59,562.8 | ||||||
Partners' Capital Account, Redemptions | $ 305,367 | $ 305,367 | ||||||
General Partner [Member] | ||||||||
Members' Equity (Details) [Line Items] | ||||||||
Distribution Made to Limited Partner, Cash Distributions Declared | $ 2,787 | 2,786 | $ 2,833 | $ 2,833 | $ 2,833 | $ 2,833 | 8,406 | $ 8,499 |
Partners' Capital Account, Redemptions | $ 9,444 | $ 9,444 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Advance Auto Middletown OH | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value Measurements (Details) [Line Items] | |
Property, Plant, and Equipment, Fair Value Disclosure | $ 82,500 |
Impairment of Real Estate | $ 78,376 |
COVID-19 Outbreak (Details)
COVID-19 Outbreak (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Coronavirus Outbreak Policy [Abstract] | ||
Deferred Rent Receivables, Net | $ 6,453 | $ 19,360 |