Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 15, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 0-17686 | |
Entity Registrant Name | DIVALL INSURED INCOME PROPERTIES 2 LIMITED PARTNERSHIP | |
Entity Central Index Key | 0000825788 | |
Entity Tax Identification Number | 39-1606834 | |
Entity Incorporation, State or Country Code | WI | |
Entity Address, Address Line One | 1900 W 75th Street | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Prairie Village | |
Entity Address, State or Province | KS | |
Entity Address, Postal Zip Code | 66208 | |
City Area Code | 816 | |
Local Phone Number | 421-7444 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 46,280.3 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
INVESTMENT PROPERTIES: (Note 3) | ||
Land | $ 1,593,609 | $ 1,944,934 |
Buildings | 2,135,742 | 2,843,881 |
Accumulated depreciation | (2,135,742) | (2,843,881) |
Net investment properties | 1,593,609 | 1,944,934 |
Property held for sale | 351,325 | 250,859 |
OTHER ASSETS: | ||
Cash and cash equivalents | 374,872 | 171,236 |
Investments held in Indemnification Trust (Note 7) | 487,947 | 480,139 |
Security deposits escrow | 45,965 | 59,464 |
Rents and other receivables | 342,359 | |
Prepaid state income tax | 28,376 | 28,376 |
Deferred closing costs | 71,207 | 12,413 |
Prepaid insurance | 949 | 2,515 |
Deferred charges, net | 228,389 | 258,394 |
Total other assets | 1,237,705 | 1,354,896 |
Total assets | 3,182,639 | 3,550,689 |
LIABILITIES: | ||
Accounts payable and accrued expenses | 71,586 | 36,619 |
Due to General Partner (Note 5) | $ 725 | $ 2,090 |
Other Liability, Related Party, Type [Extensible Enumeration] | Affiliated Entity [Member] | Affiliated Entity [Member] |
Security deposits | $ 45,955 | $ 52,320 |
Unearned rental income | 84,625 | 53,114 |
Total liabilities | 202,891 | 144,143 |
CONTINGENCIES AND COMMITMENTS (Notes 6 and 7) | ||
General Partner - | ||
Cumulative net income (retained earnings) | 433,544 | 420,502 |
Cumulative cash distributions | (181,432) | (175,584) |
Total general partners’ capital | 252,112 | 244,918 |
Limited Partners (46,280.3 interests outstanding at June 30, 2023 and December 31, 2022) | ||
Capital contributions | 46,280,300 | 46,280,300 |
Offering costs | (6,921,832) | (6,921,832) |
Cumulative net income (retained earnings) | 49,286,666 | 47,995,656 |
Cumulative cash distributions | (85,077,269) | (83,352,268) |
Total limited partners’ capital | 3,567,865 | 4,001,856 |
Former General Partner - | ||
Cumulative net income (retained earnings) | 707,513 | 707,513 |
Cumulative cash distributions | (1,547,742) | (1,547,742) |
Total former general partners’ capital | (840,229) | (840,229) |
Total partners’ capital | 2,979,748 | 3,406,545 |
Total liabilities and partners’ capital | $ 3,182,639 | $ 3,550,689 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - shares | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | |||
Limited partners, interests outstanding | 46,280.3 | 46,280.3 | 46,280.3 |
Condensed Statements of Income
Condensed Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
OPERATING REVENUES: | ||||
Rental income (Note 3) | $ 288,376 | $ 315,159 | $ 598,696 | $ 648,175 |
TOTAL OPERATING REVENUES | 288,376 | 315,159 | 598,696 | 648,175 |
EXPENSES: | ||||
Partnership management fees (Note 5) | 68,079 | 68,079 | 136,158 | 136,158 |
Insurance | 712 | 1,550 | 1,467 | 3,101 |
General and administrative | 19,414 | 14,351 | 75,488 | 61,906 |
Advisory Board fees and expenses | 1,750 | 1,750 | 3,500 | 3,500 |
Professional services | 24,870 | 61,299 | 92,732 | 151,894 |
Depreciation | ||||
Amortization | 9,929 | 10,765 | 30,005 | 22,079 |
TOTAL OPERATING EXPENSES | 124,754 | 157,794 | 339,350 | 378,638 |
OTHER INCOME | ||||
Other income | 44,475 | |||
Other interest income | 169 | 148 | 7,999 | 318 |
Gain on sale of property | 1,103,208 | 1,036,706 | 1,103,208 | |
TOTAL OTHER INCOME | 169 | 1,103,356 | 1,044,705 | 1,148,001 |
NET INCOME | 163,791 | 1,260,721 | 1,304,051 | 1,417,538 |
NET INCOME ALLOCATED - GENERAL PARTNER | 1,638 | 12,607 | 13,041 | 14,175 |
NET INCOME ALLOCATED - LIMITED PARTNERS | $ 162,153 | $ 1,248,114 | $ 1,291,010 | $ 1,403,363 |
Based on 46,280.3 interests outstanding: (Basic and diluted) | ||||
NET INCOME PER LIMITED PARTNERSHIP INTEREST | $ 3.50 | $ 26.97 | $ 27.90 | $ 30.37 |
Condensed Statements of Incom_2
Condensed Statements of Income (Unaudited) (Parenthetical) - shares | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Income Statement [Abstract] | |||
Limited partners capital account, interests outstanding | 46,280.3 | 46,280.3 | 46,280.3 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,304,051 | $ 1,417,538 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 30,005 | 22,079 |
Changes in operating assets and liabilities | ||
Gain on sale of property | (1,036,706) | (1,103,208) |
Decrease in rents and other receivables | 342,359 | 366,473 |
Decrease (increase) in security deposit escrow | 13,499 | (15) |
Decrease in prepaid insurance | 1,566 | 3,101 |
Increase in accounts payable and accrued expenses | 34,967 | 29,122 |
Security deposit refund | (6,365) | |
(Increase) decrease in deferred closing costs | (58,794) | 6,417 |
Increase in unearned rental income | 31,511 | 18,049 |
(Decrease) increase in due to General Partner | (2,102) | 2,089 |
Net cash from operating activities | 653,991 | 761,645 |
CASH FLOWS PROVIDED FROM INVESTING ACTIVITIES: | ||
Proceeds from sale of Property, net | 1,287,565 | 1,448,540 |
Interest applied to Indemnification Trust account | (7,808) | (115) |
Net cash provided from investing activities | 1,279,757 | 1,448,425 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Cash distributions to Limited Partners | (1,725,001) | (1,400,000) |
Cash distributions to General Partner | (5,111) | (6,622) |
Net cash used in financing activities | (1,730,112) | (1,406,622) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 203,636 | 803,448 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 171,236 | 965,838 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 374,872 | 1,769,286 |
Noncash investing activities | ||
Distributions declared, not yet paid | $ 737 | $ 5,673 |
Condensed Statements of Partner
Condensed Statements of Partner's Capital (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Beginning balance | $ 4,066,694 | $ 3,406,545 | $ 3,527,181 | $ 4,571,313 | $ 3,406,545 | $ 4,571,313 |
Net Income | 163,791 | 1,140,261 | 1,260,721 | 156,817 | 1,304,051 | 1,417,538 |
Distributions declared | (1,250,737) | (480,112) | (205,673) | (1,200,949) | ||
Ending balance | 2,979,748 | 4,066,694 | 4,582,229 | 3,527,181 | 2,979,748 | 4,582,229 |
General Partner [Member] | ||||||
Beginning balance | 251,211 | 244,918 | 234,400 | 233,781 | 244,918 | 233,781 |
Net Income | 1,638 | 11,404 | 12,607 | 1,568 | ||
Distributions declared | (737) | (5,111) | (5,673) | (949) | ||
Ending balance | 252,112 | 251,211 | 241,334 | 234,400 | 252,112 | 241,334 |
General Partner [Member] | Cumulativen Net Income [Member] | ||||||
Beginning balance | 431,906 | 420,502 | 401,373 | 399,805 | 420,502 | 399,805 |
Net Income | 1,638 | 11,404 | 12,607 | 1,568 | ||
Distributions declared | ||||||
Ending balance | 433,544 | 431,906 | 413,980 | 401,373 | 433,544 | 413,980 |
General Partner [Member] | Cumulative Cash Distributions [Member] | ||||||
Beginning balance | (180,695) | (175,584) | (166,973) | (166,024) | (175,584) | (166,024) |
Net Income | ||||||
Distributions declared | (737) | (5,111) | (5,673) | (949) | ||
Ending balance | (181,432) | (180,695) | (172,646) | (166,973) | (181,432) | (172,646) |
Limited Partner [Member] | ||||||
Beginning balance | 3,815,483 | 3,161,627 | 3,292,781 | 4,337,532 | 3,161,627 | 4,337,532 |
Net Income | 162,153 | 1,128,857 | 1,248,114 | 155,249 | ||
Distributions declared | (1,250,000) | (475,001) | (200,000) | (1,200,000) | ||
Ending balance | 2,727,636 | 3,815,483 | 4,340,895 | 3,292,781 | 2,727,636 | 4,340,895 |
Limited Partner [Member] | Cumulativen Net Income [Member] | ||||||
Beginning balance | 49,124,513 | 47,995,656 | 46,101,810 | 45,946,561 | 47,995,656 | 45,946,561 |
Net Income | 162,153 | 1,128,857 | 1,248,114 | 155,249 | ||
Distributions declared | ||||||
Ending balance | 49,286,666 | 49,124,513 | 47,349,924 | 46,101,810 | 49,286,666 | 47,349,924 |
Limited Partner [Member] | Cumulative Cash Distributions [Member] | ||||||
Beginning balance | (83,827,269) | (83,352,268) | (81,327,268) | (80,127,268) | (83,352,268) | (80,127,268) |
Net Income | ||||||
Distributions declared | (1,250,000) | (475,001) | (200,000) | (1,200,000) | ||
Ending balance | (85,077,269) | (83,827,269) | (81,527,268) | (81,327,268) | (85,077,269) | (81,527,268) |
Limited Partner [Member] | Capital Contributions Net of Offering Costs [Member] | ||||||
Beginning balance | 39,358,468 | 39,358,468 | 39,358,468 | 39,358,468 | 39,358,468 | 39,358,468 |
Net Income | ||||||
Distributions declared | ||||||
Ending balance | 39,358,468 | 39,358,468 | 39,358,468 | 39,358,468 | 39,358,468 | 39,358,468 |
Limited Partner [Member] | Reallocation [Member] | ||||||
Beginning balance | (840,229) | (840,229) | (840,229) | (840,229) | (840,229) | (840,229) |
Net Income | ||||||
Distributions declared | ||||||
Ending balance | $ (840,229) | $ (840,229) | $ (840,229) | $ (840,229) | $ (840,229) | $ (840,229) |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | 1. ORGANIZATION DiVall Insured Income Properties 2 LP (the “Partnership”) was formed on November 20, 1987, pursuant to the Uniform Limited Partnership Act of the State of Wisconsin. The initial capital, contributed during 1987, consisted of $ 300 200 100 46,280.3 39,358,468 The Partnership is currently engaged in the business of owning and operating its investment portfolio of commercial real estate properties (each a “Property”, and collectively, the “Properties”). The Properties are leased on a triple net basis primarily to, and operated by, franchisors or franchisees of national, regional, and local retail chains under primarily long-term leases. The lessees are operators of fast food, family style, and casual/theme restaurants. As of June 30, 2023, the Partnership owned seven The Limited Partnership Agreement, as amended from time to time (collectively, the “Partnership Agreement”), stipulates that the Partnership is scheduled to be dissolved on November 30, 2023, or earlier upon the prior occurrence of any of the following events: (a) the disposition of all its Properties; (b) the written determination by the General Partner, that the Partnership’s assets may constitute “plan assets” for purposes of ERISA; (c) the agreement of limited partners owning a majority of the outstanding limited partner interests to dissolve the Partnership; or (d) the dissolution, bankruptcy, death, withdrawal, or incapacity of the last remaining General Partner, unless an additional General Partner is elected by a majority of the limited partners. During the second and third quarters of the nine odd numbered years from 2001 through 2017, consent solicitations were circulated to the Partnership’s limited partners which, if approved by the limited partners, would have authorized the General Partner to initiate the potential sale of all of the Properties and the dissolution of the Partnership (each a “Consent”). Limited partners owning a majority of the outstanding limited partnership interests did not vote in favor of any of the Consents. Therefore, the Partnership continues to operate as a going concern. During the 2020 consent solicitation process, the Limited Partners approved two separate amendments to the Partnership Agreement. The amendments served to: (i) extend the term of the Partnership by three (3) years to November 30, 2023, and (ii) permit the General Partner to effect distributions at times that it deems appropriate, but no less often than semi-annually |
RECENTLY ADOPTED ACCOUNTING PRI
RECENTLY ADOPTED ACCOUNTING PRINCIPLES | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ADOPTED ACCOUNTING PRINCIPLES | 2. RECENTLY ADOPTED ACCOUNTING PRINCIPLES None that would have a significant impact on the Partnership. |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 6 Months Ended |
Jun. 30, 2023 | |
Real Estate [Abstract] | |
INVESTMENT PROPERTIES | 3. INVESTMENT PROPERTIES The total cost of the Properties includes the original purchase price plus acquisition fees and other capitalized costs paid to an affiliate of the former general partners of the Partnership. As of June 30, 2023, the Partnership owned seven six three Sale of Walton Way Property On April 22, 2022, the Partnership sold the property located at 1730 Walton Way, Augusta, GA for $ 1,600,000 1,103,000 Wendy’s – Peach Orchard Road, Augusta, GA Property On October 30, 2022, the tenant Wendgusta, LLC closed on an asset purchase agreement with JAI Augusta, LLC to sell substantially all the assets of the tenant and pursuant thereto, the lease was also assigned to JAI Augusta under the same terms and conditions of the lease amendment effected January 1, 2021. Wendy’s – Folly Road, Charleston, SC On December 19, 2022, the tenant Wendcharles I, LLC closed on an asset purchase agreement with JAI Augusta, LLC to sell substantially all the assets of the tenant and pursuant thereto, the lease was also assigned to JAI Augusta under the same terms and conditions of the lease amendment effected January 1, 2021. Wendy’s – Martintown Road, N.Augusta, SC On March 31, 2023, the Martintown Road Property was sold for $ 1,350,000 1.28 1 Applebee’s – Brice Road, Reynoldsburg, OH On April 11, 2023, the Partnership signed a listing agreement to offer its Applebee’s Property for a sale price of $ 2.3 DIVALL INSURED INCOME PROPERTIES 2 LIMITED PARTNERSHIP NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS Property Held for Sale The Walton Way property in Augusta, GA, was listed for sale on July 5, 2021 and was sold on April 22, 2022. The Martintown Rd property in North Augusta, SC was listed for sale on December 22, 2021 and sold on March 31, 2023. The Applebee’s Property was listed for sale on April 11, 2023. The remaining six Wendy’s properties were listed for sale on July 12, 2023. The components of property held for sale in the balance sheets as of June 30, 2023 and December 31, 2022 are outlined below: SCHEDULE OF PROPERTY HELD FOR SALE June 30, December 31, Balance Sheet: Land $ 351,325 $ 250,859 Building 708,139 409,297 Accumulated Depreciation (708,139 ) (409,297 ) Properties held for sale $ 351,325 $ 250,859 |
PARTNERSHIP AGREEMENT
PARTNERSHIP AGREEMENT | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
PARTNERSHIP AGREEMENT | 4. PARTNERSHIP AGREEMENT The Partnership Agreement was amended, effective as of October 20, 2020, to extend the term of the Partnership to November 30, 2023 Under the terms of the Partnership Agreement, as amended, net profits or losses from operations are allocated 99 1 99 1 10 The provisions regarding distribution of Net Proceeds, as defined, provide that Net Proceeds are to be distributed as follows: (a) to the limited partners, an amount equal to 100 13.5 99 1 DIVALL INSURED INCOME PROPERTIES 2 LIMITED PARTNERSHIP NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS |
TRANSACTIONS WITH GENERAL PARTN
TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES | 5. TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES Pursuant to the terms of the Permanent Manager Agreement (“PMA”) executed in 1993 and renewed for an additional two-year term as of January 1, 2023, the General Partner receives a base fee (the “Base Fee”) for managing the Partnership equal to four percent of gross receipts, subject initially to a minimum annual Base Fee. The PMA also provides that the Partnership is responsible for reimbursement of the General Partner for office rent and related office overhead (“Expenses”) up to an initial annual maximum of $ 13,250 272,316 23,256 For purposes of computing the four percent overall fee paid to the General Partner, gross receipts include amounts recovered in connection with the misappropriation of assets by the former general partners and their affiliates. The fee received by the General Partner from the Partnership on any amounts recovered reduce the four percent minimum fee by that same amount. Amounts paid and/or accrued to the General Partner and its affiliates for the three and six month periods ended June 30, 2023 and 2022 are as follows: SCHEDULE OF AMOUNTS PAID AND/OR ACCRUED TO GENERAL PARTNER AND ITS AFFILIATES Incurred for the Incurred for the Incurred for the Incurred for the Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (unaudited) (unaudited) (unaudited) (unaudited) General Partner Management fees $ 68,079 $ 68,079 $ 136,158 $ 136,158 Overhead allowance 5,814 5,814 11,628 11,628 Leasing commissions 31,013 - 31,013 - Reimbursement for out-of-pocket expenses - - 2,500 2,500 Cash distribution 737 5,673 5,848 6,622 Amounts paid and/or accrued to the General Partner $ 105,643 $ 79,566 $ 187,147 $ 156,908 At June 30, 2023 and December 31, 2022, $ 725 2,090 DIVALL INSURED INCOME PROPERTIES 2 LIMITED PARTNERSHIP NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS As of June 30, 2023, Jesse Small, an Advisory Board Member, beneficially owned greater than ten percent of the Partnership’s outstanding limited partnership interests. Amounts paid to Mr. Small for his services as a member of the Advisory Board for the three and six month periods ended June 30, 2023 and 2022 are as follows: SCHEDULE OF ADVISORY BOARD FEES PAID Three Month Three Month Six Month Six Month (Unaudited) (Unaudited) (Unaudited) (Unaudited) Advisory Board Fees paid $ 875 $ 875 $ 1,750 $ 1,750 At June 30, 2023 and December 31, 2022 there were no |
CONTINGENT LIABILITIES
CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES | 6. CONTINGENT LIABILITIES According to the Partnership Agreement, TPG, as General Partner may receive a disposition fee not to exceed three 3 In addition, fifty percent of all such disposition fees earned by TPG were to be escrowed until the aggregate amount of recovery of the funds misappropriated from the three original partnerships by the former general partners was greater than $ 4,500,000 6,000,000 4,500,000 6,000,000 16,296 6,000,000 6,000,000 |
PMA INDEMNIFICATION TRUST
PMA INDEMNIFICATION TRUST | 6 Months Ended |
Jun. 30, 2023 | |
PMA INDEMNIFICATION TRUST | 7. PMA INDEMNIFICATION TRUST The PMA provides that TPG will be indemnified from any claims or expenses arising out of, or relating to, TPG serving in the capacity of General Partner or as substitute general partner, so long as such claims do not arise from fraudulent or criminal misconduct by TPG. The PMA provides that the Partnership will fund this indemnification obligation by establishing a reserve of up to $ 250,000 237,947 DIVALL INSURED INCOME PROPERTIES 2 LIMITED PARTNERSHIP NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | 8. FAIR VALUE DISCLOSURES The Partnership has determined the fair value based on hierarchy that gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. The three levels of the fair value hierarchy under the accounting principle are described below: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Quoted prices for similar investments in active markets, quoted prices for identical or similar investments in markets that are not active, and inputs other than quoted prices that are observable for the investment. Level 3 Unobservable inputs for which there is little, if any, market activity for the investment. The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation and the use of discounted cash flow models to value the investment. The fair value hierarchy is based on the lowest level of input that is significant to the fair value measurements. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The assets held in indemnification trust account are invested in one year treasury bills which are measured using level 1 fair value inputs. The Partnership assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Partnership’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. For the six-month period ended June 30, 2023 and for the year ended December 31, 2022, there were no |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 9. SUBSEQUENT EVENTS Applebee’s – Brice Road, Reynoldsburg, OH On July 13, 2023, the Partnership accepted an offer to sell the Property for $ 2,125,000 Wendy’s – Peach Orchard, Augusta, GA On June 6, 2023 the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property with an asking price of $ 4.1 On August 7, 2023 the Partnership accepted an offer to sell the Property for $ 3.8 Wendy’s – Hwy 17 Bypass, Mt. Pleasant, SC On June 6, 2023, the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property with an asking price of $ 3.2 On July 20, 2023, the Partnership accepted an offer to sell the Property for $ 3,212,124 Wendy’s – Sam Rittenberg, Charleston, SC On June 6, 2023, the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property with an asking price of $ 3.9 Wendy’s – Richland Ave, Aiken, SC On June 6, 2023, the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property with an asking price of $ 3.4 Wendy’s – Whiskey Road, Aiken, SC On June 6, 2023, the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property with an asking price of $ 4.0 Wendy’s – Folly Road, Charleston, SC On June 6, 2023, the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property with an asking price of $ 3.5 We have reviewed all material events through the date of this report in accordance with ASC 855-10. |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Real Estate [Abstract] | |
SCHEDULE OF PROPERTY HELD FOR SALE | The components of property held for sale in the balance sheets as of June 30, 2023 and December 31, 2022 are outlined below: SCHEDULE OF PROPERTY HELD FOR SALE June 30, December 31, Balance Sheet: Land $ 351,325 $ 250,859 Building 708,139 409,297 Accumulated Depreciation (708,139 ) (409,297 ) Properties held for sale $ 351,325 $ 250,859 |
TRANSACTIONS WITH GENERAL PAR_2
TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF AMOUNTS PAID AND/OR ACCRUED TO GENERAL PARTNER AND ITS AFFILIATES | Amounts paid and/or accrued to the General Partner and its affiliates for the three and six month periods ended June 30, 2023 and 2022 are as follows: SCHEDULE OF AMOUNTS PAID AND/OR ACCRUED TO GENERAL PARTNER AND ITS AFFILIATES Incurred for the Incurred for the Incurred for the Incurred for the Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (unaudited) (unaudited) (unaudited) (unaudited) General Partner Management fees $ 68,079 $ 68,079 $ 136,158 $ 136,158 Overhead allowance 5,814 5,814 11,628 11,628 Leasing commissions 31,013 - 31,013 - Reimbursement for out-of-pocket expenses - - 2,500 2,500 Cash distribution 737 5,673 5,848 6,622 Amounts paid and/or accrued to the General Partner $ 105,643 $ 79,566 $ 187,147 $ 156,908 |
SCHEDULE OF ADVISORY BOARD FEES PAID | SCHEDULE OF ADVISORY BOARD FEES PAID Three Month Three Month Six Month Six Month (Unaudited) (Unaudited) (Unaudited) (Unaudited) Advisory Board Fees paid $ 875 $ 875 $ 1,750 $ 1,750 |
ORGANIZATION (Details Narrative
ORGANIZATION (Details Narrative) | 6 Months Ended | ||
Feb. 22, 1990 USD ($) shares | Nov. 20, 1987 USD ($) | Jun. 30, 2023 Number | |
Aggregate capital contributions | $ 300 | ||
Limited partnership interests outstanding | shares | 46,280.3 | ||
Proceeds to partnership, net of underwriting compensation and other offering costs | $ 39,358,468 | ||
Number of properties owned | Number | 7 | ||
Partnership agreement description | The amendments served to: (i) extend the term of the Partnership by three (3) years to November 30, 2023, and (ii) permit the General Partner to effect distributions at times that it deems appropriate, but no less often than semi-annually | ||
General Partner [Member] | |||
Aggregate capital contributions | 200 | ||
Limited Partner [Member] | |||
Aggregate capital contributions | $ 100 |
SCHEDULE OF PROPERTY HELD FOR S
SCHEDULE OF PROPERTY HELD FOR SALE (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Real Estate [Abstract] | ||
Land | $ 351,325 | $ 250,859 |
Building | 708,139 | 409,297 |
Accumulated Depreciation | (708,139) | (409,297) |
Properties held for sale | $ 351,325 | $ 250,859 |
INVESTMENT PROPERTIES (Details
INVESTMENT PROPERTIES (Details Narrative) | 6 Months Ended | ||||
Apr. 11, 2023 USD ($) | Mar. 31, 2023 USD ($) | Apr. 22, 2022 USD ($) | Jun. 30, 2023 USD ($) Restaurant Number | Jun. 30, 2022 USD ($) | |
Long-Lived Assets Held-for-Sale [Line Items] | |||||
Number of real estate properties | Number | 7 | ||||
Number of states in which entity operates | Number | 3 | ||||
Proceeds from sale of property plant and equipment | $ 1,287,565 | $ 1,448,540 | |||
Applebee's - Brice Road, Reynoldsburg, OH [Member] | |||||
Long-Lived Assets Held-for-Sale [Line Items] | |||||
Proceeds from sale of property plant and equipment | $ 2,300,000 | ||||
1730 Walton Way, Augusta, GA [Member] | |||||
Long-Lived Assets Held-for-Sale [Line Items] | |||||
Real estate property sold | $ 1,600,000 | ||||
Gain on sale of real estate property | $ 1,103,000 | ||||
Wendy's - Martintown Road, N.Augusta, SC [Member] | |||||
Long-Lived Assets Held-for-Sale [Line Items] | |||||
Real estate property sold | $ 1,350,000 | ||||
Gain on sale of real estate property | 1,000,000 | ||||
Proceeds from sales of real estate property | $ 1,280,000 | ||||
Wendy's Restaurants [Member] | |||||
Long-Lived Assets Held-for-Sale [Line Items] | |||||
Number of real estate properties | Restaurant | 6 |
PARTNERSHIP AGREEMENT (Details
PARTNERSHIP AGREEMENT (Details Narrative) | Oct. 20, 2020 | Jun. 30, 2023 |
Partnership agreement extended date | Nov. 30, 2023 | |
Limited Partner [Member] | ||
Net profits or losses from operations amended | 99% | |
Amended rate of net proceeds were to be distributed | 99% | |
Cumulative simple return on adjusted original capital | 10% | |
Amended distributions as percentage of adjusted original capital | 100% | |
Liquidation preference of limited partners amended | 13.50% | |
Net proceeds available for distribution | 99% | |
General Partner [Member] | ||
Net profits or losses from operations amended | 1% | |
Amended rate of net proceeds were to be distributed | 1% | |
Net proceeds available for distribution | 1% |
SCHEDULE OF AMOUNTS PAID AND_OR
SCHEDULE OF AMOUNTS PAID AND/OR ACCRUED TO GENERAL PARTNER AND ITS AFFILIATES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transactions [Abstract] | ||||
Management fees | $ 68,079 | $ 68,079 | $ 136,158 | $ 136,158 |
Overhead allowance | 5,814 | 5,814 | 11,628 | 11,628 |
Leasing commissions | 31,013 | 31,013 | ||
Reimbursement for out-of-pocket expenses | 2,500 | 2,500 | ||
Cash distribution | 737 | 5,673 | 5,848 | 6,622 |
Amounts paid and/or accrued to the General Partner | $ 105,643 | $ 79,566 | $ 187,147 | $ 156,908 |
SCHEDULE OF ADVISORY BOARD FEES
SCHEDULE OF ADVISORY BOARD FEES PAID (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transactions [Abstract] | ||||
Advisory Board Fees paid | $ 875 | $ 875 | $ 1,750 | $ 1,750 |
TRANSACTIONS WITH GENERAL PAR_3
TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES (Details Narrative) - USD ($) | Jan. 01, 2023 | Mar. 01, 2021 | Jun. 30, 2023 | Dec. 31, 2022 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Payable to general partner | $ 725 | $ 2,090 | ||
Outstanding advisory board fees | $ 0 | $ 0 | ||
Permanent Manager Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Maximum reimbursement on office rent and related expenses | $ 13,250 | $ 23,256 | ||
Fees received from partnership, by general partner | $ 272,316 |
CONTINGENT LIABILITIES (Details
CONTINGENT LIABILITIES (Details Narrative) | 6 Months Ended |
Jun. 30, 2023 USD ($) Number | |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum percentage of disposition fees on sale of partnership properties | three |
Number of partnership properties for sale | Number | 3 |
Recovery level description | In addition, fifty percent of all such disposition fees earned by TPG were to be escrowed until the aggregate amount of recovery of the funds misappropriated from the three original partnerships by the former general partners was greater than $4,500,000. Upon reaching such recovery level, full disposition fees would thereafter be payable, and fifty percent of the previously escrowed amounts would be paid to TPG. At such time as the recovery exceeded $6,000,000 in the aggregate, the remaining escrowed disposition fees were to be paid to TPG. If such levels of recovery were not achieved, TPG would contribute the amounts escrowed toward the recovery until the three original partnerships were made whole. In lieu of a disposition fee escrow, fifty percent of all such disposition fees previously discussed were paid directly to a restoration account and then distributed among the three original partnerships; whereby the three original partnerships recorded the recoveries as income. After the recovery level of $4,500,000 was exceeded, fifty percent of the total disposition fee amount paid to the three original partnerships recovery through the restoration account (in lieu of the disposition fee escrow) was refunded to TPG during March 1996. The remaining fifty percent amount allocated to the Partnership through the restoration account, and which was previously reflected as Partnership recovery income, may be owed to TPG if the $6,000,000 recovery level is met. As of June 30, 2023, the Partnership may owe TPG $16,296 if the $6,000,000 recovery level is achieved. |
Amount of recovery of funds | $ 4,500,000 |
Aggregate recovery of funds value | 6,000,000 |
Payable fee on achieving recovery level | $ 16,296 |
PMA INDEMNIFICATION TRUST (Deta
PMA INDEMNIFICATION TRUST (Details Narrative) | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Reserve related to partnership assets | $ 250,000 |
Earnings credited to the trust | $ 237,947 |
FAIR VALUE DISCLOSURES (Details
FAIR VALUE DISCLOSURES (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Recognition of transfers between levels of the fair value hierarchy | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 6 Months Ended | ||||||
Aug. 07, 2023 | Jul. 20, 2023 | Jul. 13, 2023 | Jun. 06, 2023 | Apr. 11, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property plant and equipment | $ 1,287,565 | $ 1,448,540 | |||||
Applebee's - Brice Road, Reynoldsburg, OH [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property plant and equipment | $ 2,300,000 | ||||||
Wendy's - Peach Orchard Road, Augusta, GA Property [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property plant and equipment | $ 4,100,000 | ||||||
Wendy's - Hwy 17 Bypass, Mt. Pleasant, SC [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property plant and equipment | 3,200,000 | ||||||
Wendy's - Sam Rittenberg, Charleston, SC [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property plant and equipment | 3,900,000 | ||||||
Wendy's - Richland Ave, Aiken, SC [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property plant and equipment | 3,400,000 | ||||||
Wendy's - Whiskey Road, Aiken, SC [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property plant and equipment | 4,000,000 | ||||||
Wendy's - Folly Road, Charleston, SC [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property plant and equipment | $ 3,500,000 | ||||||
Subsequent Event [Member] | Applebee's - Brice Road, Reynoldsburg, OH [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property plant and equipment | $ 2,125,000 | ||||||
Subsequent Event [Member] | Wendy's - Peach Orchard Road, Augusta, GA Property [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property plant and equipment | $ 3,800,000 | ||||||
Subsequent Event [Member] | Wendy's - Hwy 17 Bypass, Mt. Pleasant, SC [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property plant and equipment | $ 3,212,124 |