Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Document And Entity Information | |
Entity Registrant Name | DSI Realty Income Fund XI |
Entity Central Index Key | 844048 |
Document Type | 10-K |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | No |
Entity Filer Category | Smaller Reporting Company |
Entity Public Float | $10,000,000 |
Entity Common Stock, Shares Outstanding | 20,000 |
Document Fiscal Period Focus | Q4 |
Document Fiscal Year Focus | 2014 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS: | ||
Cash | $259,935 | $185,624 |
Discontinued operating assets | 2,154,867 | 2,179,402 |
TOTAL | 2,414,801 | 2,365,026 |
LIABILITIES: | ||
Distribution due to Partners | 151,515 | 151,515 |
Accrued Expenses | 13,600 | 13,600 |
Discontinued operating liabilities | 125,804 | 163,616 |
Total Liabilities | 290,919 | 328,731 |
PARTNERS' EQUITY: | ||
General Partners | -68,429 | -69,304 |
Limited Partners | 2,192,311 | 2,105,599 |
Total Partners' Equity | 2,123,882 | 2,036,295 |
TOTAL | $2,414,801 | $2,365,026 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES: | ||
TOTAL | $0 | $0 |
EXPENSES: | ||
General and administrative | 185,554 | 142,821 |
Total | 185,554 | 142,821 |
LOSS FROM CONTINUING OPERATIONS | -185,554 | -142,821 |
INCOME FROM DISCONTINUED OPERATIONS | 1,034,455 | 836,004 |
NET INCOME | 848,901 | 693,184 |
LESS: net income attributable to the non-controlling interest | 155,254 | 129,704 |
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP | 693,647 | 563,480 |
AGGREGATE INCOME ALLOCATED TO: | ||
General partners | 6,936 | 5,635 |
Limited partners | 686,711 | 557,845 |
TOTAL | $693,647 | $563,480 |
Weighted average limited partnership units outstanding | 20,000 | 20,000 |
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP PER LIMITED PARTNERSHIP UNIT | 34.34 | 27.89 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Partners' Equity (USD $) | General Partners | Limited Partners | Noncontrolling Interest | Total |
BALANCE, Beginning at Dec. 31, 2012 | ($68,878) | $2,147,753 | $0 | $2,078,875 |
Net Income Allocation | 5,635 | 557,845 | 129,704 | 693,184 |
Distributions | 6,060 | 600,000 | 129,704 | 735,764 |
BALANCE, Ending at Dec. 31, 2013 | 2,036,295 | |||
Net Income Allocation | 6,936 | 686,711 | 155,254 | 848,901 |
Distributions | 6,061 | 599,999 | 155,254 | 761,314 |
BALANCE, Ending at Dec. 31, 2014 | ($68,429) | $2,192,311 | $0 | $2,123,882 |
Consoldidated_Statements_of_Ca
Consoldidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $848,901 | $693,184 |
Less: Net income from discontinued operations | 1,034,455 | 836,004 |
Net loss from continuing operating activities | -185,554 | -142,820 |
Net cash provided by operating activities from continuing operations | 185,554 | 142,820 |
Net cash provided by operating activities from discontinued operations | 1,021,179 | 876,114 |
Net cash provided by operating activities | 835,625 | 733,294 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Distributions to partners | 606,060 | 606,060 |
Distributions paid to non-controlling interests | -155,254 | -129,704 |
Net cash used in financing activities | -761,314 | -735,764 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | 74,311 | -2,470 |
CASH, AT BEGINNING OF YEAR | 269,711 | 307,881 |
Cash from continuing components | 185,624 | 188,094 |
Cash from discontinued components | 83,018 | 119,787 |
CASH, AT END OF YEAR | 342,953 | 269,711 |
Cash from continuing components | 259,935 | 185,624 |
Cash from discontinued components | 84,087 | 83,018 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest | 0 | 0 |
NON CASH INVESTING AND FINANCING ACTIVITIES: | ||
Distributions due partners included in partners' equity | $151,515 | $151,515 |
General
General | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
General | 1. GENERAL |
DSI Realty Income Fund XI, a California Limited Partnership (the "Partnership"), has three general partners (DSI Properties, Inc., RJC Capital Management, LLC and JWC Capital Management, LLC. The general partners have made no capital contributions to the Partnership and are not required to make any capital contributions in the future. The Partnership has a maximum life of 50 years and was formed on December 7, 1988, under the California Uniform Limited Partnership Act for the primary purpose of acquiring and operating real estate. | |
DSI Properties, Inc. is an affiliate of Diversified Securities, Inc., a wholly-owned subsidiary of DSI Financial, Inc. The General Partners provide similar services to other partnerships. Through its public offering of Limited Partnership Units, Registrant sold twenty thousand (20,000) units of limited partnership interests aggregating Ten Million Dollars ($10,000,000). The General Partners have retained a one percent (1%) interest in all profits, losses and distributions (subject to certain conditions) without making any capital contribution to the Partnership. The General Partners are not required to make any capital contributions to the Partnership in the future. | |
The Partnership has entered into four joint venture arrangements with affiliates of Dahn Corporation ("Dahn"). The Partnership and its joint venture partners have acquired four mini-storage properties located in Whittier, California; Edgewater, New Jersey; Bloomingdale, Illinois; and Sterling Heights, Michigan. The properties were acquired from Dahn. | |
Under the terms of the property purchase agreements, the Partnership and its joint venture partners (Whittier Mini, Bloomingdale Mini, Edgewater Mini, and Sterling Heights Mini, each a California Limited Partnership and an affiliate of Dahn, and hereinafter referred to as the "Joint Venture Partners") own an undivided interest in the mini-storage facilities as follows: | |
Joint Venture | |
Mini-Storage Property Partnership Partner | |
Whittier, CA 90% 10% | |
Bloomingdale, IL 90% 10% | |
Edgewater, NJ 85% 15% | |
Sterling Heights, MI 75% 25% | |
The Joint Venture Partners have made no cash contributions to any of the joint ventures. Rather, each Joint Venture Partner's interest in each respective mini-storage property was obtained in consideration of a reduction in the purchase price of the property by Dahn. The Partnership has control over the business and operations of the mini-storage facilities (see Note 6). | |
Pursuant to the terms of each joint venture agreement, annual profits (before depreciation) of each joint venture will be allocated to the Joint Venture Partners on the basis of actual distributions received, while annual losses (before depreciation) are to be allocated in proportion to the ownership percentages as specified above. Cash distributions are to be made to each Joint Venture Partner based upon each Joint Venture Partner's ownership percentage. However, the Joint Venture Partners have subordinated their rights to any distributions to the Partnership's receipt of an annual, noncumulative, 8% return (7.75% for the Whittier Mini) from the operation of the joint ventures. Requirements under the subordination agreement were met during 2014 and 2013. A noncontrolling interest in real estate joint venture is recorded to the extent of any distributions due to the Joint Venture Partners. The Joint Venture Partners are also entitled to receive a percentage, based upon a pre-determined formula, of the net proceeds from the sale of the properties. |
Property
Property | 12 Months Ended | ||
Dec. 31, 2014 | |||
Notes to Financial Statements | |||
Property | The total cost of property and accumulated depreciation were as follows as of December 31: | ||
2014 | 2013 | ||
Land | $1,894,250 | $1,894,250 | |
Buildings and improvements | 6,725,753 | 6,725,753 | |
Rental trucks | 163,382 | 163,382 | |
Total | 8,783,385 | 8,783,385 | |
Less accumulated depreciation | -6,821,054 | -6,811,180 | |
Property – net | $1,962,331 | $1,972,205 | |
The Sale for all properties was approved by the affirmative vote of the holders of approximately 54.5% of the outstanding units of limited partnership interests in the Fund (the “Units”) in accordance with the proxy statement of the Fund dated November 21, 2014. As of December 31, 2014 and 2013, all the properties have been classified as discontinued operation. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Related Party Transactions | The partnership has entered into management agreements with Dahn to operate its mini-storage facilities. The management agreements provide for a management fee equal to 6% of gross revenue from operations, which is defined as the entire amount of all receipts from the renting or leasing of storage compartments and sale of locks. The management agreements are renewable annually. Dahn earned management fees equal to $123,503 and $123,503 for the years ended December 31, 2014 and 2013, respectively. Amounts payable to Dahn at December 31, 2014 and 2013, were $10,896 and $9,466, respectively. |
Beginning in July 2011, the General Partner, DSI Properties, Inc. performs all tax related work with respect to the Partnership. These services are paid monthly in the amount of $2,313. Tax fees paid to DSI Properties, Inc. for the year ended December 31, 2014 were $27,756. |
Allocations_of_Profits_and_Los
Allocations of Profits and Losses | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Allocations of Profits and Losses | Under the Agreement of Limited Partnership, the general partners are to be allocated 1% of the net profits or losses from operations, and the limited partners are to be allocated the balance of the net profits or losses from operations in proportion to their limited partnership interests. The general partners are also entitled to receive a percentage, based on a predetermined formula, of any cash distribution from the sale, other disposition, or refinancing of the project. |
In addition, the general partners are entitled to receive an incentive management fee for supervising the operations of the Partnership. The fee is to be paid in an amount equal to 9% per annum of the cash distributions to limited partners in the fund. |
Business_Segment_Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Business Segment Information | 5. BUSINESS SEGMENT INFORMATION |
The following disclosure about segment reporting of the Partnership is made in accordance with the requirements of ASC 280-10 (formerly SFAS No. 131, "Disclosures About Segments of an Enterprise and Related Information") The Partnership operates in a single segment; storage facility operations, under which the Partnership rents its storage facilities to its customers on a need basis and charges rent on a predetermined rate. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Cash - The Partnership classifies its short-term investments purchased with an original maturity of three months or less as cash equivalents. As of December 31, 2014 the Partnership had no cash equivalents. | |
Uncollected Rental Revenue - The Partnership estimates the collectability of uncollected rental revenue on an ongoing basis by reviewing past-due monthly rents and assessing the current creditworthiness of each tenant. Allowances are provided based on historical write-offs. Allowances on uncollected rental revenue as of December 31, 2014 and 2013 were $18,960 and $22,432, respectively. | |
Property and Depreciation - Property is recorded at cost and is composed primarily of mini-storage facilities. Depreciation is provided using the straight-line method over an estimated useful life of 20 years for the facilities. Building improvements are depreciated over a five year period. Property under capital leases is amortized over the lesser of the lives of the respective leases or the estimated useful lives of the assets. | |
Income Taxes - No provision has been made for income taxes in the accompanying financial statements. The taxable income or loss of the Partnership is allocated to each partner in accordance with the terms of the Agreement of Limited Partnership. Each partner's tax status, in turn, determines the appropriate income tax for its allocated share of the Partnership's taxable income or loss.. For the year ended December 31, 2011 the Partnership changed the accounting method for federal income tax purposes from cash to accrual basis thereby eliminating the difference in the basis of the Partnership’s assets and liabilities between tax and the GAAP basis financial statements. The change in tax accounting method resulted in an adjustment to the limited partners’ capital account for tax purposes for the year ended December 31, 2011 only in order to coincide with the accounting method used to prepare the Partnership’s GAAP basis financial statements. Accordingly there were no differences for the year ended December 31, 2014. | |
Noncontrolling Interest - The Partnership reports noncontrolling interests in real estate joint ventures as a separate component within equity, in accordance with ASC 810-10 (formerly SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements"). The net income allocated to noncontrolling interest for the year ended December 31, 2014 and 2013 was $155,254 and $129,704 respectively. Distributions were made to the Joint Venture Partners for the noncontrolling interest in real estate joint venture during the years ended December 31, 2014 and 2013 in the amount of $155,254 and $129,704, respectively. No amounts were due to Joint Venture partners at December 31, 2014 and 2013. | |
Revenues - Rental income, which is generally earned pursuant to month-to-month leases for storage space, as well as late charges and administrative fees, are recognized as earned. Promotional discounts reduce rental income over the promotional period. Ancillary revenues and interest and other income are recognized when earned. | |
Advertising Expense - Costs related to advertising in Yellow Pages are capitalized and amortized over 12 months. All other advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2014 and 2011 were $98,332 and $108,770 respectively. | |
Net Income per Limited Partnership Unit - Net income per limited partnership unit is computed by dividing net income allocated to the limited partners by the weighted average number of limited partnership units outstanding during each year. | |
Reclassifications - Certain amounts included in the accompanying financial statements for 2014 and 2013 have been reclassified to conform to the 2014 financial statement presentation. Balance sheet amounts for properties classified as held for sale have been reclassified as of December 31, 2014 and 2013. Statement of operations amounts for properties classified as discontinued operations have been reclassified for all periods presented. The discontinued operation is a component (or group of components) of the entity, the disposal of which would represent a strategic shift that has (or will have) a major effect on the entity’s operations and financial results, when such component (or group of components) have been disposed of or classified as held for sale. Through December 31, 2014, discontinued operations represent properties that we have either disposed of or have classified as held for sale if both the operations and cash flows of the property have been or will be eliminated from our ongoing operations as a result of the disposal transaction and if we will not have any significant continuing involvement in the operations of the property after the disposal transaction | |
Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Partnership to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Impairment of Long-Lived Assets - The Partnership regularly reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected undiscounted future cash flow is less than the carrying amount of the asset, the Partnership would recognize an impairment loss to the extent the carrying value exceeded the fair value of the property. No impairment losses were required in 2014 or 2013. | |
Fair Value of Financial Instruments - ASC 825-10 (formerly SFAS 107, “Disclosures about Fair Value of Financial Instruments”) defines financial instruments and requires disclosure of the fair value of financial instruments held by the Partnership. For all financial instruments, including cash and cash equivalents, uncollected rent revenue, other assets, distributions due to partners, incentive management fee payable to general partners, property management fee payable, customer deposits, other liabilities and deferred income, carrying values approximate fair values because of the short maturity of those instruments. | |
Concentrations of Credit Risk - Financial instruments that potentially subject the Partnership to concentrations of credit risk consist primarily of cash and cash equivalents and uncollected rent revenue. The Partnership places its cash and cash equivalents with high credit quality institutions. Accounts at banks are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At December 31, 2014, the Partnership had balance of $9,935 in excess of insured limits. The Partnership performs ongoing evaluations of these institutions to limit its concentration of risk exposure. Management believes this risk is not significant due to the financial strength of the financial institutions utilized by the Partnership. | |
Comprehensive Income - The Partnership has adopted Accounting Standards Update 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. For the year ended December 31, 2014 and 2013 comprehensive income equaled net income, as the Partnership had no other comprehensive income. As of December 31, 2014 and 2013, accumulated other comprehensive income was $0. | |
Recent Accounting Pronouncements | |
The Partnership has reviewed all the recent accounting pronouncements issued to date of the issuance of these consolidated financial statements, and does not believe any of these pronouncements will have a material impact on the Partnership’s consolidated financial statements. | |
In April 2014, the FASB issued Accounting Standards Update 2014-08 (“ASU 2014-08”), which provides a revised definition of a discontinued operation. ASU 2014-08 requires additional disclosures for a discontinued operation and the disposal of an asset and component of the entity that is not a discontinued operation. Under ASU 2014-08, a discontinued operation is a component (or group of components) of the entity, the disposal of which would represent a strategic shift that has (or will have) a major effect on the entity’s operations and financial results, when such component (or group of components) have been disposed of or classified as held for sale. The amendments in the ASU should be applied prospectively and are effective for us beginning January 1, 2015, with early adoption permitted. We adopted this standard effective December 31, 2014. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | On January 9, 2015 the sale of all of the properties except Edgewater Park and Sterling Heights and related assets of DSI Realty Income Fund XI (the “Fund”) to affiliates of Smart Stop Self Storage (the “Sale”). The Sale was approved by the affirmative vote of the holders of approximately 54.5% of the outstanding units of limited partnership interests in the Fund (the “Units”) in accordance with the proxy statement of the Fund dated November 21, 2014. The Sale is expected to be completed within the next 60 days for an aggregate gross sale price of $10,820,000. |
Real_Estate_and_Accumulated_De
Real Estate and Accumulated Depreciation | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||
Real Estate and Accumulated Depreciation | SCHEDULE III | ||||||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||||||
As of December 31, 2014 | |||||||||
Gross Carrying Amount | |||||||||
Initial Cost | Costs | at December 31, 2014 | |||||||
Description | Acquisition Date | Land | Buildings and Improvements | Subsequent to Acquisition | Land | Total | Accumulated Depreciation | ||
Buildings and | |||||||||
Improvements | |||||||||
Whittier, CA | Mar-90 | $845,000 | $1,969,083 | $34,025 | $845,000 | $2,003,108 | $2,848,108 | ($2,004,013) | |
Bloomingdale, IL | Jan-91 | 442,000 | 1,579,879 | 117,739 | 442,000 | 1,697,618 | 2,139,618 | ($1,675,667) | |
Edgewater, NJ | Sep-90 | 191,250 | 2,400,712 | 82,003 | 191,250 | 2,482,715 | 2,673,965 | ($2,443,124) | |
Sterling Hts., MI | Jul-91 | 416,000 | 467,979 | 74,333 | 416,000 | 542,312 | 958,312 | ($534,868) | |
$1,894,250 | $6,417,653 | $278,478 | $1,894,250 | $6,725,753 | $8,620,003 | ($6,657,672) | |||
Notes: | |||||||||
1 | Depreciation expense is computed using the straight-line method over an estimated useful life of 20 years for the buildings. | ||||||||
2 | There are no encumbrances. | ||||||||
3. The dissolution of the Fund was also approved by the affirmative vote of the holders of approximately 54.5% of the Units, which will occur following the sale of all Fund properties and the settlement of all accounts of the Fund. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||
Dec. 31, 2014 | |||
Discontinued Operations and Disposal Groups [Abstract] | |||
Discontinued Operations | The Sale for all properties was approved by the affirmative vote of the holders of approximately 54.5% of the outstanding units of limited partnership interests in the Fund (the “Units”) in accordance with the proxy statement of the Fund dated November 21, 2014. As of December 31, 2014 and 2013, all the properties have been classified as discontinued operation. | ||
The following table summarizes the balance sheets components that comprise discontinued operations: | |||
BALANCE SHEETS | 2013 | 2014 | |
ASSETS | |||
Cash | $84,087 | $83,018 | |
Property, net | 1,972,205 | 1,962,331 | |
Uncollected rental revenue | 89,730 | 75,839 | |
Prepaid advertising | - | - | |
Other assets | 33,380 | 33,679 | |
TOTAL ASSETS OF DISCONTINUED OPERATIONS | $2,179,402 | $2,154,867 | |
LIABILITIES | |||
Incentive management fee liability | 27,273 | - | |
Property management fee liability | 9,466 | 10,896 | |
Deferred income | 32,128 | 35,594 | |
Accrued expenses | 11,586 | 1,751 | |
Other liabilities | 83,164 | 81,064 | |
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS | 163,616 | 125,805 | |
NET ASSETS OF DISCONTINUED OPERATIONS | $2,015,786 | $2,029,062 | |
The following table summarizes the revenue and expense components that comprise discontinued operations: | |||
For the year ended December 31, | |||
2014 | 2013 | ||
REVENUE | $2,238,425 | $2,068,128 | |
EXPENSES | 1,187,170 | 1,215,324 | |
NET OPERATING INCOME FROM DISCONTINUED OPERATIONS | 1,051,255 | 852,804 | |
NET GAIN ON SALE OF DISCONTINUED OPERATIONS | - | - | |
TOTAL INCOME FROM DISCONTINUED OPERATIONS | $1,051,255 | $852,804 | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Cash | Cash - The Partnership classifies its short-term investments purchased with an original maturity of three months or less as cash equivalents. As of December 31, 2014 the Partnership had no cash equivalents. | ||||||||
Uncollected Rental Revenue | Uncollected Rental Revenue - The Partnership estimates the collectability of uncollected rental revenue on an ongoing basis by reviewing past-due monthly rents and assessing the current creditworthiness of each tenant. Allowances are provided based on historical write-offs. Allowances on uncollected rental revenue as of December 31, 2014 and 2013 were $22,432 and $22,432, respectively. | ||||||||
Property and Depreciation | SCHEDULE III | ||||||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||||||
As of December 31, 2014 | |||||||||
Gross Carrying Amount | |||||||||
Initial Cost | Costs | at December 31, 2014 | |||||||
Description | Acquisition Date | Land | Buildings and Improvements | Subsequent to Acquisition | Land | Total | Accumulated Depreciation | ||
Buildings and | |||||||||
Improvements | |||||||||
Whittier, CA | Mar-90 | $845,000 | $1,969,083 | $34,025 | $845,000 | $2,003,108 | $2,848,108 | ($2,004,013) | |
Bloomingdale, IL | Jan-91 | 442,000 | 1,579,879 | 117,739 | 442,000 | 1,697,618 | 2,139,618 | ($1,675,667) | |
Edgewater, NJ | Sep-90 | 191,250 | 2,400,712 | 82,003 | 191,250 | 2,482,715 | 2,673,965 | ($2,443,124) | |
Sterling Hts., MI | Jul-91 | 416,000 | 467,979 | 74,333 | 416,000 | 542,312 | 958,312 | ($534,868) | |
$1,894,250 | $6,417,653 | $278,478 | $1,894,250 | $6,725,753 | $8,620,003 | ($6,657,672) | |||
Notes: | |||||||||
1 | Depreciation expense is computed using the straight-line method over an estimated useful life of 20 years for the buildings. | ||||||||
2 | There are no encumbrances. | ||||||||
3. The dissolution of the Fund was also approved by the affirmative vote of the holders of approximately 54.5% of the Units, which will occur following the sale of all Fund properties and the settlement of all accounts of the Fund. | |||||||||
Income Taxes | Income Taxes - No provision has been made for income taxes in the accompanying financial statements. The taxable income or loss of the Partnership is allocated to each partner in accordance with the terms of the Agreement of Limited Partnership. Each partner's tax status, in turn, determines the appropriate income tax for its allocated share of the Partnership's taxable income or loss.. For the year ended December 31, 2011 the Partnership changed the accounting method for federal income tax purposes from cash to accrual basis thereby eliminating the difference in the basis of the Partnership’s assets and liabilities between tax and the GAAP basis financial statements. The change in tax accounting method resulted in an adjustment to the limited partners’ capital account for tax purposes for the year ended December 31, 2011 only in order to coincide with the accounting method used to prepare the Partnership’s GAAP basis financial statements. Accordingly there were no differences for the year ended December 31, 2014. | ||||||||
Noncontrolling interests | Noncontrolling Interest - The Partnership reports noncontrolling interests in real estate joint ventures as a separate component within equity, in accordance with ASC 810-10 (formerly SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements"). The net income allocated to noncontrolling interest for the year ended December 31, 2014 and 2013 was $155,254 and $129,704 respectively. Distributions were made to the Joint Venture Partners for the noncontrolling interest in real estate joint venture during the years ended December 31, 2014 and 2013 in the amount of $155,254 and $129,704, respectively. No amounts were due to Joint Venture partners at December 31, 2014 and 2013. | ||||||||
Revenues | Revenues - Rental income, which is generally earned pursuant to month-to-month leases for storage space, as well as late charges and administrative fees, are recognized as earned. Promotional discounts reduce rental income over the promotional period. Ancillary revenues and interest and other income are recognized when earned. | ||||||||
Advertising Expense | Advertising Expense - Costs related to advertising in Yellow Pages are capitalized and amortized over 12 months. All other advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2014 and 2013 were $98,332 and $108,770 respectively. | ||||||||
Net Income per Limited Partnership Unit | Net Income per Limited Partnership Unit - Net income per limited partnership unit is computed by dividing net income allocated to the limited partners by the weighted average number of limited partnership units outstanding during each year. | ||||||||
Reclasifications | Reclassifications - Certain amounts included in the accompanying financial statements for 2014 and 2013 have been reclassified to conform to the 2014 financial statement presentation. Balance sheet amounts for properties classified as held for sale have been reclassified as of December 31, 2014 and 2013. Statement of operations amounts for properties classified as discontinued operations have been reclassified for all periods presented. The discontinued operation is a component (or group of components) of the entity, the disposal of which would represent a strategic shift that has (or will have) a major effect on the entity’s operations and financial results, when such component (or group of components) have been disposed of or classified as held for sale. Through December 31, 2014, discontinued operations represent properties that we have either disposed of or have classified as held for sale if both the operations and cash flows of the property have been or will be eliminated from our ongoing operations as a result of the disposal transaction and if we will not have any significant continuing involvement in the operations of the property after the disposal transaction | ||||||||
Estimates | Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Partnership to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets - The Partnership regularly reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected undiscounted future cash flow is less than the carrying amount of the asset, the Partnership would recognize an impairment loss to the extent the carrying value exceeded the fair value of the property. No impairment losses were required in 2014 or 2013. | ||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments - ASC 825-10 (formerly SFAS 107, “Disclosures about Fair Value of Financial Instruments”) defines financial instruments and requires disclosure of the fair value of financial instruments held by the Partnership. For all financial instruments, including cash and cash equivalents, other assets, distributions due to partners, incentive management fee payable to general partners, property management fee payable, and customer deposits and other liabilities, carrying values approximate fair values because of the short maturity of those instruments. | ||||||||
Concentrations of Credit Risk | Concentrations of Credit Risk - Financial instruments that potentially subject the Partnership to concentrations of credit risk consist primarily of cash and cash equivalents and uncollected rent revenue. The Partnership places its cash and cash equivalents with high credit quality institutions. Accounts at banks are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At December 31, 2014, the Partnership had balance of $9,935 in excess of insured limits. The Partnership performs ongoing evaluations of these institutions to limit its concentration of risk exposure. Management believes this risk is not significant due to the financial strength of the financial institutions utilized by the Partnership. | ||||||||
Comprehensive Income | Comprehensive Income - The Partnership has adopted Accounting Standards Update 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. For the year ended December 31, 2014 and 2013 comprehensive income equaled net income, as the Partnership had no other comprehensive income. As of December 31, 2014 and 2013, accumulated other comprehensive income was $0. | ||||||||
Recent Accounting Pronoucements | The Partnership has reviewed all the recent accounting pronouncements issued to date of the issuance of these consolidated financial statements, and does not believe any of these pronouncements will have a material impact on the Partnership’s consolidated financial statements. | ||||||||
In April 2014, the FASB issued Accounting Standards Update 2014-08 (“ASU 2014-08”), which provides a revised definition of a discontinued operation. ASU 2014-08 requires additional disclosures for a discontinued operation and the disposal of an asset and component of the entity that is not a discontinued operation. Under ASU 2014-08, a discontinued operation is a component (or group of components) of the entity, the disposal of which would represent a strategic shift that has (or will have) a major effect on the entity’s operations and financial results, when such component (or group of components) have been disposed of or classified as held for sale. The amendments in the ASU should be applied prospectively and are effective for us beginning January 1, 2015, with early adoption permitted. We adopted this standard effective December 31, 2014. |
Property_Tables
Property (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Notes to Financial Statements | |||
Summary of Property and Equipment | 2014 | 2013 | |
Land | $1,894,250 | $1,894,250 | |
Buildings and improvements | 6,725,753 | 6,725,753 | |
Rental trucks | 163,382 | 163,382 | |
Total | 8,783,385 | 8,783,385 | |
Less accumulated depreciation | -6,821,054 | -6,811,180 | |
Property – net | $1,962,331 | $1,972,205 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Discontinued Operations and Disposal Groups [Abstract] | |||
Balance Sheets | |||
BALANCE SHEETS | 2014 | 2013 | |
ASSETS | |||
Cash | $96,337 | $98,228 | |
Property, net | 2,112,431 | 2,141,470 | |
Uncollected rental revenue | 115,631 | 142,247 | |
Prepaid advertising | 7,344 | - | |
Other assets | 71,476 | 57,024 | |
TOTAL ASSETS OF DISCONTINUED OPERATIONS | $2,403,219 | $2,438,969 | |
LIABILITIES | |||
Incentive management fee liability | 305,918 | 342,035 | |
Property management fee liability | 310,895 | 309,146 | |
Deferred income | 43,402 | 51,461 | |
Accrued expenses | 13,654 | 17,462 | |
Other liabilities | 189,349 | 185,616 | |
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS | 863,218 | 905,720 | |
NET ASSETS OF DISCONTINUED OPERATIONS | $1,540,001 | $1,533,249 | |
Discontinued Operations | For the year ended December 31, | ||
2014 | 2013 | ||
REVENUE | $2,999,167 | $2,613,449 | |
DEPRECIATION | 29,039 | 31,875 | |
OPERATING EXPENSES | 1,169,558 | 1,289,341 | |
GP’S INCENTIVE FEES | 72,234 | 72,240 | |
PROPERTY MANAGEMENT FEE | 151,119 | 130,350 | |
G&A EXPENSES | 137,015 | 169,292 | |
NET OPERATING INCOME FROM DISCONTINUED OPERATIONS | 1,440,202 | 920,351 | |
TOTAL INCOME FROM DISCONTINUED OPERATIONS | $1,440,202 | $920,351 |
Real_Estate_and_Accumulated_De1
Real Estate and Accumulated Depreciation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||
Real Estate and Accumulated Depreciation | Gross Carrying Amount | ||||||||
Initial Cost | Costs | at December 31, 2014 | |||||||
Description | Acquisition Date | Land | Buildings and Improvements | Subsequent to Acquisition | Land | Total | Accumulated Depreciation | ||
Buildings and | |||||||||
Improvements | |||||||||
Whittier, CA | Mar-90 | $845,000 | $1,969,083 | $34,025 | $845,000 | $2,003,108 | $2,848,108 | ($2,004,013) | |
Bloomingdale, IL | Jan-91 | 442,000 | 1,579,879 | 117,739 | 442,000 | 1,697,618 | 2,139,618 | ($1,675,667) | |
Edgewater, NJ | Sep-90 | 191,250 | 2,400,712 | 82,003 | 191,250 | 2,482,715 | 2,673,965 | ($2,443,124) | |
Sterling Hts., MI | Jul-91 | 416,000 | 467,979 | 74,333 | 416,000 | 542,312 | 958,312 | ($534,868) | |
$1,894,250 | $6,417,653 | $278,478 | $1,894,250 | $6,725,753 | $8,620,003 | ($6,657,672) | |||
Notes: | |||||||||
1 | Depreciation expense is computed using the straight-line method over an estimated useful life of 20 years for the buildings. | ||||||||
2 | There are no encumbrances. | ||||||||
3. The dissolution of the Fund was also approved by the affirmative vote of the holders of approximately 54.5% of the Units, which will occur following the sale of all Fund properties and the settlement of all accounts of the Fund. |
Allocations_of_Profits_and_Los1
Allocations of Profits and Losses (Details Narrative) | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
General Partner Percentage | 1.00% |
General_Details_Narrative
General (Details Narrative) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Limited Partnership Units Outstanding | 20,000 |
Public Float | $10,000,000 |
General Partner Percent Ownership Percentage | 1.00% |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Notes to Financial Statements | |||
Management Fee Percentage | 6.00% | 6.00% | |
Management Fee | $133,275 | $123,503 | |
Payable To Dahn | 10,896 | 10,896 | 9,466 |
Monthly Tax Fee to General Partner | $2,313 | $27,756 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | ||
Allowance for uncollectable rental revenue | $22,432 | $16,526 |
Advertising Expense | 108,770 | 74,812 |
Net income allocated to noncontrolling interests | 155,254 | 129,704 |
Distributions to noncontrolling interests | ($155,254) | ($129,704) |
Property_Summary_of_Property_a
Property - Summary of Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, net | ||
Land | $1,894,250 | $1,894,250 |
Buildings and improvements | 6,725,753 | 6,725,753 |
Rental trucks under capital leases | 163,382 | 163,382 |
Total | 8,783,385 | 8,783,385 |
Less accumulated depreciation | 6,821,054 | 6,811,180 |
Property - net | $1,962,331 | $1,972,205 |
Real_Estate_and_Accumulated_De2
Real Estate and Accumulated Depreciation - Real Estate and Accumulated Depreciation (Details) (USD $) | Dec. 31, 2014 |
Land | |
Whittier, CA | $845,000 |
Bloomingdale, IL | 442,000 |
Edgewater, NJ | 191,250 |
Sterling Heights, MI | 416,000 |
Total | 1,894,250 |
Building and Improvements | |
Whittier, CA | 1,969,083 |
Bloomingdale, IL | 1,579,879 |
Edgewater, NJ | 2,400,712 |
Sterling Heights, MI | 467,979 |
Total | 6,417,653 |
Costs Subsequent To Acquition | |
Whittier, CA | 34,025 |
Bloomingdale, IL | 117,739 |
Edgewater, NJ | 82,003 |
Sterling Heights, MI | 74,333 |
Total | 308,100 |
Land | |
Whittier, CA | 845,000 |
Bloomingdale, IL | 442,000 |
Edgewater, NJ | 191,250 |
Sterling Heights, MI | 416,000 |
Total | 1,894,250 |
Buildings and Improvements | |
Whittier, CA | 2,003,108 |
Bloomingdale, IL | 1,697,618 |
Edgewater, NJ | 2,482,715 |
Sterling Heights, MI | 542,312 |
Total | 6,725,753 |
Total | |
Whittier, CA | 2,848,108 |
Bloomingdale, IL | 2,139,618 |
Edgewater, NJ | 2,673,965 |
Sterling Heights, MI | 958,312 |
Total | 8,620,003 |
Accumulated Depreciation | |
Whittier, CA | -2,004,013 |
Bloomingdale, IL | -1,675,667 |
Edgewater, NJ | -2,443,124 |
Sterling Heights, MI | -534,868 |
Total | ($6,657,672) |
Discontinued_Operations_Discon
Discontinued Operations - Discontinued Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | |||
Cash | $84,087 | $83,018 | $119,787 |
Property, net | 1,972,205 | 1,962,331 | |
Uncollected rental revenue | 89,730 | 75,839 | |
Prepaid advertising | 0 | 0 | |
Other assets | 33,380 | 33,679 | |
TOTAL ASSETS OF DISCONTINUED OPERATIONS | 2,179,402 | 2,154,867 | |
LIABILITIES | |||
Incentive management fee liability | 27,273 | 0 | |
Property management fee liability | 9,466 | 10,896 | |
Deferred income | 32,128 | 35,594 | |
Accrued expenses | 11,586 | 1,751 | |
Other liabilities | 83,164 | 81,064 | |
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS | 163,616 | 125,805 | |
NET ASSETS OF DISCONTINUED OPERATIONS | $2,015,786 | $2,029,062 |
Discontinued_Operations_Discon1
Discontinued Operations - Discontinued Operations (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
REVENUE | $2,238,425 | $2,068,128 |
NET GAIN ON SALE OF DISCONTINUED OPERATIONS | 0 | 0 |
TOTAL INCOME FROM DISCONTINUED OPERATIONS | $1,034,455 | $836,004 |