SB Partners 10-Q 14 May 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	3 Months Ended
	Mar. 31, 2018shares
Document Information [Line Items]
Entity Registrant Name	SB PARTNERS
Entity Central Index Key	87,047
Trading Symbol	sbp
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)	0
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Assets:
Land	$ 470,000	$ 470,000
Buildings, furnishings and improvements	5,081,365	5,081,365
Less - accumulated depreciation	(2,124,611)	(2,084,846)
	3,426,754	3,466,519
Investment in Sentinel Omaha, LLC, net of reserve for fair value of $10,243,635 and $12,526,608 at March 31, 2018 and December 31, 2017, respectively	40,974,535	37,579,824
	44,401,289	41,046,343
Other Assets -
Cash and cash equivalents	1,504,625	1,449,927
Cash in escrow	506,314	504,778
Other	4,046	7,019
Total assets	46,416,274	43,008,067
Liabilities:
Loan payable, net of unamortized deferred finance costs of $1,820 and $7,279 at March 31, 2018 and December 31, 2017, respectively	5,724,770	5,719,311
Accounts payable	531,562	516,793
Tenant security deposit	101,414	101,414
Accrued expenses	3,042,548	2,922,943
Total liabilities	9,400,294	9,260,461
Partners' Equity (Deficit):
Limited partner - 7,753 units	37,029,641	33,761,689
General partner - 1 unit	(13,661)	(14,083)
Total partners' equity	37,015,980	33,747,606
Total liabilities and partners' equity	$ 46,416,274	$ 43,008,067

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Investment in Sentinel Omaha, LLC, reserve for fair value	$ 10,243,635	$ 12,526,608
Deferred finance costs	$ 1,820	$ 7,279
Limited partner - units (in shares)	7,753	7,753
General partner - units (in shares)	1	1

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Base rental income	$ 184,203	$ 178,772
Other rental income	87,041	87,452
Interest income	2,537	1,154
Total revenues	273,781	267,378
Expenses:
Real estate operating expenses	67,786	67,122
Amortization of deferred financing costs	5,460	5,460
Depreciation	39,765	39,345
Real estate taxes	30,468	30,881
Management fees	226,164	220,383
Other	30,475	32,520
Total expenses	400,118	395,711
Loss from operations	(126,337)	(128,333)
Equity in net income of investment	1,111,737	3,449,898
Decrease (increase) in reserve for value of investment	2,282,974	(1,207,464)
Net income	3,268,374	2,114,101
Income allocated to general partner	422	273
Income allocated to limited partners	$ 3,267,952	$ 2,113,828
Income per unit of limited partnership interest (basic and diluted)
Net income (in dollars per share)	$ 421.56	$ 272.68
Weighted Average Number of Units of Limited Partnership Interest Outstanding (in shares)	7,753	7,753

Consolidated Statements of Chan

Consolidated Statements of Changes in Partners' Equity (Deficit) - 3 months ended Mar. 31, 2018 - USD ($)	Limited Partner [Member]Units of Partnership [Member]	Limited Partner [Member]Cumulative Cash Distributions [Member]	Limited Partner [Member]Retained Earnings [Member]	Limited Partner [Member]	General Partner [Member]Units of Partnership [Member]	General Partner [Member]Cumulative Cash Distributions [Member]	General Partner [Member]Retained Earnings [Member]	General Partner [Member]	Total
Balance (in shares) at Dec. 31, 2017	7,753				1
Balance at Dec. 31, 2017	$ 119,968,973	$ (111,721,586)	$ 25,514,302	$ 33,761,689	$ 10,000	$ (26,364)	$ 2,281	$ (14,083)	$ 33,747,606
Net income			3,267,952	3,267,952			422	422	3,268,374
Balance (in shares) at Mar. 31, 2018	7,753				1
Balance at Mar. 31, 2018	$ 119,968,973	$ (111,721,586)	$ 28,782,254	$ 37,029,641	$ 10,000	$ (26,364)	$ 2,703	$ (13,661)	$ 37,015,980

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Cash Flows From Operating Activities:
Net income	$ 3,268,374	$ 2,114,101
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net (income) of investment	(1,111,737)	(3,449,898)
(Decrease) increase in reserve for value of investment	(2,282,974)	1,207,464
Depreciation and amortization	45,225	44,805
Net decrease in operating assets	2,972	3,121
Net increase (decrease) in accounts payable	14,769	(2,051)
Net increase in accrued expenses	119,605	113,820
Net cash provided by operating activites and net change in cash and cash equivalents and cash in escrow	56,234	31,362
Cash and cash equivalents and cash in escrow at beginning of period	1,954,705	1,828,342	$ 1,828,342
Cash and cash equivalents and cash in escrow at end of period	$ 2,010,939	$ 1,859,704	$ 1,954,705

Note 1 - Organization and Signi

Note 1 - Organization and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	( 1 SB Partners, a New York limited partnership, and its subsidiaries (collectively, the "Partnership" or the “Registrant”), have been engaged since April 1971 The consolidated financial statements included herein are unaudited; however, the information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to a fair presentation of the financial position, results of operations and cash flows for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not 10 The results of operations for the three March 31, 2018 not For a discussion of the significant accounting and financial reporting policies of the Partnership, refer to the Annual Report on Form 10–K December 31, 2017.

Note 2 - Reclassification

Note 2 - Reclassification	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Reclassifications [Text Block]	( 2 In November 2016, No. 2016 18, Restricted Cash 2016 18 2016 18 2016 18 December 15, 2017.

Note 3 - Investments in Real Es

Note 3 - Investments in Real Estate	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Real Estate Disclosure [Text Block]	( 3 As of March 31, 2018, March 31, 2018 December 31, 2017. No. of Year of Real Estate at Cost Type Prop. Acquisition Description (sf) 3/31/2018 12/31/2017 Industrial flex property 1 2002 60,345 $ 5,551,365 $ 5,551,365 Less: Accumulated depreciation (2,124,611 ) (2,084,846 ) Investment in real estate $ 3,426,754 $ 3,466,519

Note 4 - Assets Measured at Fai

Note 4 - Assets Measured at Fair Value	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]	( 4 The accounting guidance for Fair Value Measurements establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in determining fair value. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value is calculated based on the assumptions that market participants would use in pricing the asset or liability, not The three ● Level 1 ● Level 2 ● Level 3 The following major categories of assets were measured at fair value as of March 31, 2018 December 31, 2017: Level 3: March 31, Significant 2018 Unobservable (Unaudited) Inputs Total Assets Investment in Sentinel Omaha, LLC $ 51,218,170 $ 51,218,170 Reserve for fair value of investment (10,243,635 ) (10,243,635 ) Total assets $ 40,974,535 $ 40,974,535 Level 3: December 31, Significant 2017 Unobservable (Audited) Inputs Total Assets Investment in Sentinel Omaha, LLC $ 50,106,432 $ 50,106,432 Reserve for fair value of investment (12,526,608 ) (12,526,608 ) Total assets $ 37,579,824 $ 37,579,824 The following is a reconciliation of the beginning and ending balances for assets measured at fair value using significant unobservable inputs (Level 3 March 31, 2018 December 31, 2017: Investment in Reserve for Sentinel fair value Omaha, LLC of investment Total Balance at January 1, 2017 $ 38,786,395 $ (13,575,238 ) $ 25,211,157 Equity in net income of investment 11,320,037 - 11,320,037 Decrease in reserve - 1,048,630 1,048,630 Balance at December 31, 2017 50,106,432 (12,526,608 ) 37,579,824 Equity in net income of investment 1,111,737 - 1,111,737 Decrease in reserve - 2,282,974 2,282,974 Balance at March 31, 2018 $ 51,218,169 $ (10,243,634 ) $ 40,974,535 Omaha was precluded from making distributions to its investors until its unsecured loan was paid in full. Omaha’s unsecured loan which as of December 31, 2017 $20,859,322 December 31, 2017. 2017, one June 30, 2018. December 31, 2017 30% December 31, 2017 25% first 2018, first March 31, 2018 20%.

Note 5 - Investment in Sentinel

Note 5 - Investment in Sentinel Omaha, LLC	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	( 5 In 2007, $37,200,000 March 31, 2018 9 6 30% The following are the condensed financial statements ( 000’s March 31, 2018 December 31, 2017. (Unaudited) (Audited) Balance Sheet March 31, 2018 December 31, 2017 Investment in real estate, net $ 296,400 $ 368,600 Other assets 23,303 10,556 Debt (145,695 ) (207,187 ) Other liabilities (3,281 ) (4,948 ) Member's equity $ 170,727 $ 167,021 (Unaudited) Statement of Operations March 31, 2018 Rent and other income $ 9,341 Real estate operating expenses (4,761 ) Other expenses (1,649 ) Net realized gains 9,919 Net unrealized losses (9,145 ) Net increase in net assets $ 3,705

Note 6 - Loan Payable

Note 6 - Loan Payable	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Debt Disclosure [Text Block]	( 6 Loan payable consists of the following: Annual Net Carrying Amount Interest Installment Amount Due March 31, December 31, Property Rate Maturity Date Payments at Maturity 2018 2017 Bank Loan (a): Note B 0.000 % Apr-19 - 5,726,590 $ 5,726,590 $ 5,726,590 Less: unamortized finance costs (1,820 ) (7,279 ) Loan payable $ 5,724,770 $ 5,719,311 (a) On September 17, 2007, $22,000,000. April 29, 2011, 175 2011. 2015. 1 Note B in the amount of $5,726,590 April 29, 2018 three one 5% $1,335,833 September 18, 2015 not Except as discussed below, payments of principal are deferred until Registrant’s investment in Sentinel Omaha LLC (“Omaha”) pays distributions to the Partnership or the Partnership sells Eagle Lake Business Center IV or its investment in Omaha. Distributions from Omaha or net proceeds from the sale of Eagle IV or Omaha would be used first no January 30, 2018, first one April 29, 2019, 2 Note B may may 3 Until the Partnership’s obligations under Note B is satisfied in full, the Partnership is required to pay a portion of its net operating income (after payment of certain permitted expenses), and the net proceeds from the sale, transfer or refinancing of its remaining properties and investments, toward Note B while retaining the other portion to increase cash reserves. On May 26, 2017, $33,883 4 The Partnership, its general partner and the Holder also entered into a Management Subordination Agreement accruing a portion of the investment management fee payable by the Partnership to its general partner so long as Note B remains outstanding. As of March 31, 2018 December 31, 2017, $3,042,548 $2,922,943, 5 As additional security for the Partnership’s payment of its obligations under the Loan Agreement, the Partnership, through its wholly-owned subsidiary Eagle IV Realty, LLC, has executed a Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement (“Eagle IV Security Agreement”) and a Pledge Agreement (“Eagle IV Pledge Agreement”) in favor of Holder. The Eagle IV Security Agreement provides Holder with a security interest on the Partnership’s property located in Maple Grove, Minnesota (“Eagle IV”) of up to $5,000,000. no

Note 3 - Investments in Real 13

Note 3 - Investments in Real Estate (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Real Estate Properties [Table Text Block]	No. of Year of Real Estate at Cost Type Prop. Acquisition Description (sf) 3/31/2018 12/31/2017 Industrial flex property 1 2002 60,345 $ 5,551,365 $ 5,551,365 Less: Accumulated depreciation (2,124,611 ) (2,084,846 ) Investment in real estate $ 3,426,754 $ 3,466,519

Note 4 - Assets Measured at F14

Note 4 - Assets Measured at Fair Value (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]	Level 3: March 31, Significant 2018 Unobservable (Unaudited) Inputs Total Assets Investment in Sentinel Omaha, LLC $ 51,218,170 $ 51,218,170 Reserve for fair value of investment (10,243,635 ) (10,243,635 ) Total assets $ 40,974,535 $ 40,974,535 Level 3: December 31, Significant 2017 Unobservable (Audited) Inputs Total Assets Investment in Sentinel Omaha, LLC $ 50,106,432 $ 50,106,432 Reserve for fair value of investment (12,526,608 ) (12,526,608 ) Total assets $ 37,579,824 $ 37,579,824
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Investment in Reserve for Sentinel fair value Omaha, LLC of investment Total Balance at January 1, 2017 $ 38,786,395 $ (13,575,238 ) $ 25,211,157 Equity in net income of investment 11,320,037 - 11,320,037 Decrease in reserve - 1,048,630 1,048,630 Balance at December 31, 2017 50,106,432 (12,526,608 ) 37,579,824 Equity in net income of investment 1,111,737 - 1,111,737 Decrease in reserve - 2,282,974 2,282,974 Balance at March 31, 2018 $ 51,218,169 $ (10,243,634 ) $ 40,974,535

Note 5 - Investment in Sentin15

Note 5 - Investment in Sentinel Omaha, LLC (Tables)	3 Months Ended
	Mar. 31, 2018
Statement of Operations [Member]
Notes Tables
Real Estate Investment Financial Statements, Disclosure [Table Text Block]	(Unaudited) Statement of Operations March 31, 2018 Rent and other income $ 9,341 Real estate operating expenses (4,761 ) Other expenses (1,649 ) Net realized gains 9,919 Net unrealized losses (9,145 ) Net increase in net assets $ 3,705
Balance Sheet [Member]
Notes Tables
Real Estate Investment Financial Statements, Disclosure [Table Text Block]	(Unaudited) (Audited) Balance Sheet March 31, 2018 December 31, 2017 Investment in real estate, net $ 296,400 $ 368,600 Other assets 23,303 10,556 Debt (145,695 ) (207,187 ) Other liabilities (3,281 ) (4,948 ) Member's equity $ 170,727 $ 167,021

Note 6 - Loan Payable (Tables)

Note 6 - Loan Payable (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Long-term Debt Instruments [Table Text Block]	Annual Net Carrying Amount Interest Installment Amount Due March 31, December 31, Property Rate Maturity Date Payments at Maturity 2018 2017 Bank Loan (a): Note B 0.000 % Apr-19 - 5,726,590 $ 5,726,590 $ 5,726,590 Less: unamortized finance costs (1,820 ) (7,279 ) Loan payable $ 5,724,770 $ 5,719,311

Note 3 - Investments in Real 17

Note 3 - Investments in Real Estate - Summary of Investments in Real Estate (Details)	3 Months Ended
	Mar. 31, 2018USD ($)ft²	Dec. 31, 2017USD ($)
Less: Accumulated depreciation	$ (2,124,611)	$ (2,084,846)
Investment in real estate	$ 3,426,754	3,466,519
Industrial Flex Property [Member]
No. of Prop.	1
Year of Acquisition	2,002
Description (Square Foot) | ft²	60,345
Investment in real estate, at cost	$ 5,551,365	5,551,365
Less: Accumulated depreciation	(2,124,611)	(2,084,846)
Investment in real estate	$ 3,426,754	$ 3,466,519

Note 4 - Assets Measured at F18

Note 4 - Assets Measured at Fair Value (Details Textual) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Sentinel Omaha LLC [Member]
Equity Method Investment, Ownership Percentage	30.00%	30.00%
Equity Method Investment, Fair Value, Reserve, Percent	20.00%	25.00%
Sentinel Omaha LLC [Member]
Unsecured Debt, Total		$ 20,859,322

Note 4 - Assets Measured at F19

Note 4 - Assets Measured at Fair Value - Fair Value Measurement of Assets (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reserve for fair value of investment	$ (10,243,635)	$ (12,526,608)
Total assets	40,974,535	37,579,824
Sentinel Omaha LLC [Member]
Investment in Sentinel Omaha, LLC	51,218,170	50,106,432
Reserve for fair value of investment	(10,243,635)	(12,526,608)
Total assets	40,974,535	37,579,824
Fair Value, Inputs, Level 3 [Member] | Sentinel Omaha LLC [Member]
Investment in Sentinel Omaha, LLC	51,218,169	50,106,432	$ 38,786,395
Reserve for fair value of investment	(10,243,635)	(12,526,608)
Total assets	$ 40,974,535	$ 37,579,824

Note 4 - Assets Measured at F20

Note 4 - Assets Measured at Fair Value - Reconciliation of Assets Measured at Fair Value (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
(Decrease) increase in reserve for value of investment	$ (2,282,974)	$ 1,207,464
Sentinel Omaha LLC [Member]
Balance, Investment in Sentinel Omaha, LLC	50,106,432
Balance, Investment in Sentinel Omaha, LLC	51,218,170		$ 50,106,432
Fair Value, Inputs, Level 3 [Member] | Sentinel Omaha LLC [Member]
Balance, Investment in Sentinel Omaha, LLC	50,106,432	38,786,395	38,786,395
Equity in net income of investment, Investment in Sentinel Omaha, LLC	1,111,737		11,320,037
(Decrease) increase in reserve for value of investment
Balance, Investment in Sentinel Omaha, LLC	51,218,169		50,106,432
Balance, Reserve for fair value of investment	(12,526,608)	(13,575,238)	(13,575,238)
Decrease in reserve, Reserve for fair value of investment	2,282,974		1,048,630
Balance, Reserve for fair value of investment	(10,243,634)		(12,526,608)
Balance	37,579,824	$ 25,211,157	25,211,157
Equity in net income of investment	1,111,737		11,320,037
Decrease in reserve	2,282,974		1,048,630
Balance	$ 40,974,535		$ 37,579,824

Note 5 - Investment in Sentin21

Note 5 - Investment in Sentinel Omaha, LLC (Details Textual) - Sentinel Omaha LLC [Member]	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2007USD ($)
Investment Owned, at Cost			$ 37,200,000
Number of Multifamily Properties	9
Number of Markets	6
Equity Method Investment, Ownership Percentage	30.00%	30.00%

Note 5 - Investment in Sentin22

Note 5 - Investment in Sentinel Omaha, LLC - Balance Sheet (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Other assets	$ 4,046	$ 7,019
Debt	(5,724,770)	(5,719,311)
Sentinel Omaha LLC [Member]
Investment in real estate, net	296,400,000	368,600,000
Other assets	23,303,000	10,556,000
Debt	(145,695,000)	(207,187,000)
Other liabilities	(3,281,000)	(4,948,000)
Member's equity	$ 170,727,000	$ 167,021,000

Note 5 - Investment in Sentin23

Note 5 - Investment in Sentinel Omaha, LLC - Statement of Operations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Rent and other income	$ 273,781	$ 267,378
Real estate operating expenses	(67,786)	(67,122)
Other expenses	(30,475)	(32,520)
Net increase in net assets	3,268,374	$ 2,114,101
Sentinel Omaha LLC [Member]
Rent and other income	9,341,000
Real estate operating expenses	(4,761,000)
Other expenses	(1,649,000)
Net realized gains	9,919,000
Net unrealized losses	(9,145,000)
Net increase in net assets	$ 3,705,000

Note 6 - Loan Payable (Details

Note 6 - Loan Payable (Details Textual)		May 26, 2017USD ($)	Apr. 29, 2011USD ($)	Mar. 31, 2018USD ($)		Dec. 31, 2017USD ($)		Sep. 17, 2007USD ($)
Long-term Debt, Total				$ 5,724,770		$ 5,719,311
Notes Payable to Banks [Member]
Debt Instrument, Face Amount								$ 22,000,000
Management Fee Payable				3,042,548		2,922,943
Security Interest on Partnership's Property Maximum				5,000,000
Notes Payable to Banks [Member] | Note B [Member]
Debt Instrument, Face Amount	[1]			5,726,590
Long-term Debt, Total			$ 5,726,590	$ 5,724,770	[1]	$ 5,719,311	[1]
Original Maturity Date			Apr. 29, 2018	Apr. 30, 2019	[1]
Number of Extension Options			3
Term of Extension Options			1 year
Debt Instrument, Interest Rate, Stated Percentage			5.00%	0.00%	[1]
Interest Payable			$ 1,335,833
Repayments of Unsecured Debt		$ 33,883
[1]	On September 17, 2007, the Partnership entered into a bank loan (the "Loan") with a bank ("Holder") in the amount of $22,000,000. On April 29, 2011, the Holder and the Partnership executed a new Loan Agreement ("Loan Agreement"). Registrant paid down a portion of the Loan using the net sales proceeds from the sale of 175 Ambassador Drive in 2011. Registrant made a further pay down, including fully retiring Note A, using the net sales proceeds from the sale of Lino Lakes in 2015. The terms of the remaining bank loan are: 1) Note B in the amount of $5,726,590 has a maturity date of April 29, 2018. The Partnership has three one-year options to extend the maturity date if certain conditions are satisfied. Note B previously accrued interest at an annual fixed rate of 5% but only until all interest and principal had been paid in full on Note A. Accrued interest related to Note B in the amount of $1,335,833 was paid off in full on September 18, 2015 using sales proceeds from the sale of Lino Lakes. Thereafter Note B does not accrue any interest. Except as discussed below, payments of principal are deferred until Registrant's investment in Sentinel Omaha LLC ("Omaha") pays distributions to the Partnership or the Partnership sells Eagle Lake Business Center IV or its investment in Omaha. Distributions from Omaha or net proceeds from the sale of Eagle IV or Omaha would be used first to pay the outstanding principal balance of Note B. If there are no distributions from Omaha prior to the Note B maturity, principal is due at maturity, subject to the above mentioned extensions. On January 30, 2018, the Partnership sent notice to Holder to exercise its first one year option to extend the maturity date to April 29, 2019, which Holder has acknowledged. 2) Note B may be voluntarily prepaid upon notice to the Holder, subject to certain requirements as to the application of payments. The Partnership's obligations under the Notes may be accelerated upon default. 3) Until the Partnership's obligations under Note B is satisfied in full, the Partnership is required to pay a portion of its net operating income (after payment of certain permitted expenses), and the net proceeds from the sale, transfer or refinancing of its remaining properties and investments, toward Note B while retaining the other portion to increase cash reserves. On May 26, 2017, the partnership paid $33,883 to the Holder to pay down a portion of the outstanding balance of Note B. While the obligation under Note B is outstanding, the Partnership is precluded from making distributions to its partners. 4) The Partnership, its general partner and the Holder also entered into a Management Subordination Agreement accruing a portion of the investment management fee payable by the Partnership to its general partner so long as Note B remains outstanding. As of March 31, 2018 and December 31, 2017, $3,042,548 and $2,922,943, respectively of investment management fees have been accrued and are included in accrued expenses on the balance sheet. 5) As additional security for the Partnership's payment of its obligations under the Loan Agreement, the Partnership, through its wholly-owned subsidiary Eagle IV Realty, LLC, has executed a Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement ("Eagle IV Security Agreement") and a Pledge Agreement ("Eagle IV Pledge Agreement") in favor of Holder. The Eagle IV Security Agreement provides Holder with a security interest on the Partnership's property located in Maple Grove, Minnesota ("Eagle IV") of up to $5,000,000. The Eagle IV Pledge Agreement pledges to Holder the Partnership's membership interest in Eagle IV Realty, LLC, the direct owner of Eagle IV. The Partnership has no other debt obligation secured by Eagle IV. The Loan Agreement also provides for a negative pledge on the Partnership's remaining property and investment.

Note 6 - Loan Payable - Summary

Note 6 - Loan Payable - Summary of Notes and Loans Payable (Details) - USD ($)		Apr. 29, 2011	Mar. 31, 2018		Dec. 31, 2017		Sep. 17, 2007
Less: unamortized finance costs			$ (1,820)		$ (7,279)
Long-term Debt, Total			$ 5,724,770		5,719,311
Notes Payable to Banks [Member]
Long-term debt, At Maturity							$ 22,000,000
Notes Payable to Banks [Member] | Note B [Member]
Long-term debt, Interest Rate		5.00%	0.00%	[1]
Maturity Date		Apr. 29, 2018	Apr. 30, 2019	[1]
Long-term debt, At Maturity	[1]		$ 5,726,590
Long-term debt, Gross	[1]		5,726,590		5,726,590
Less: unamortized finance costs	[1]		(1,820)		(7,279)
Long-term Debt, Total		$ 5,726,590	$ 5,724,770	[1]	$ 5,719,311	[1]
[1]	On September 17, 2007, the Partnership entered into a bank loan (the "Loan") with a bank ("Holder") in the amount of $22,000,000. On April 29, 2011, the Holder and the Partnership executed a new Loan Agreement ("Loan Agreement"). Registrant paid down a portion of the Loan using the net sales proceeds from the sale of 175 Ambassador Drive in 2011. Registrant made a further pay down, including fully retiring Note A, using the net sales proceeds from the sale of Lino Lakes in 2015. The terms of the remaining bank loan are: 1) Note B in the amount of $5,726,590 has a maturity date of April 29, 2018. The Partnership has three one-year options to extend the maturity date if certain conditions are satisfied. Note B previously accrued interest at an annual fixed rate of 5% but only until all interest and principal had been paid in full on Note A. Accrued interest related to Note B in the amount of $1,335,833 was paid off in full on September 18, 2015 using sales proceeds from the sale of Lino Lakes. Thereafter Note B does not accrue any interest. Except as discussed below, payments of principal are deferred until Registrant's investment in Sentinel Omaha LLC ("Omaha") pays distributions to the Partnership or the Partnership sells Eagle Lake Business Center IV or its investment in Omaha. Distributions from Omaha or net proceeds from the sale of Eagle IV or Omaha would be used first to pay the outstanding principal balance of Note B. If there are no distributions from Omaha prior to the Note B maturity, principal is due at maturity, subject to the above mentioned extensions. On January 30, 2018, the Partnership sent notice to Holder to exercise its first one year option to extend the maturity date to April 29, 2019, which Holder has acknowledged. 2) Note B may be voluntarily prepaid upon notice to the Holder, subject to certain requirements as to the application of payments. The Partnership's obligations under the Notes may be accelerated upon default. 3) Until the Partnership's obligations under Note B is satisfied in full, the Partnership is required to pay a portion of its net operating income (after payment of certain permitted expenses), and the net proceeds from the sale, transfer or refinancing of its remaining properties and investments, toward Note B while retaining the other portion to increase cash reserves. On May 26, 2017, the partnership paid $33,883 to the Holder to pay down a portion of the outstanding balance of Note B. While the obligation under Note B is outstanding, the Partnership is precluded from making distributions to its partners. 4) The Partnership, its general partner and the Holder also entered into a Management Subordination Agreement accruing a portion of the investment management fee payable by the Partnership to its general partner so long as Note B remains outstanding. As of March 31, 2018 and December 31, 2017, $3,042,548 and $2,922,943, respectively of investment management fees have been accrued and are included in accrued expenses on the balance sheet. 5) As additional security for the Partnership's payment of its obligations under the Loan Agreement, the Partnership, through its wholly-owned subsidiary Eagle IV Realty, LLC, has executed a Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement ("Eagle IV Security Agreement") and a Pledge Agreement ("Eagle IV Pledge Agreement") in favor of Holder. The Eagle IV Security Agreement provides Holder with a security interest on the Partnership's property located in Maple Grove, Minnesota ("Eagle IV") of up to $5,000,000. The Eagle IV Pledge Agreement pledges to Holder the Partnership's membership interest in Eagle IV Realty, LLC, the direct owner of Eagle IV. The Partnership has no other debt obligation secured by Eagle IV. The Loan Agreement also provides for a negative pledge on the Partnership's remaining property and investment.