Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | AEI Income & Growth Fund XXII LTD Partnership |
Document Type | 10-K |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | shares | 13,463 |
Entity Public Float | $ | $ 0 |
Amendment Flag | false |
Entity Central Index Key | 0001023458 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Ex Transition Period | false |
Balance Sheet
Balance Sheet - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash | $ 850,519 | $ 913,966 |
Real Estate Investments: | ||
Land | 1,861,003 | 2,367,033 |
Buildings | 5,281,203 | 6,631,829 |
Acquired Intangible Lease Assets | 932,882 | 932,882 |
Real Estate Held for Investment, at cost | 8,075,088 | 9,931,744 |
Accumulated Depreciation and Amortization | (2,581,592) | (2,871,573) |
Real Estate Held for Investment, Net | 5,493,496 | 7,060,171 |
Real Estate Held for Sale | 1,208,359 | 0 |
Total Real Estate Investments | 6,701,855 | 7,060,171 |
Total Assets | 7,552,374 | 7,974,137 |
Current Liabilities: | ||
Payable to AEI Fund Management, Inc. | 43,596 | 29,826 |
Distributions Payable | 142,474 | 142,476 |
Unearned Rent | 9,620 | 9,620 |
Total Current Liabilities | 195,690 | 181,922 |
Partners’ Capital (Deficit): | ||
General Partners | (37,817) | (24,751) |
Limited Partners – 24,000 Units authorized; 13,463 and 13,641 Units issued and outstanding as of December 31, 2018 and 2017, respectively | 7,394,501 | 7,816,966 |
Total Partners' Capital | 7,356,684 | 7,792,215 |
Total Liabilities and Partners' Capital | $ 7,552,374 | $ 7,974,137 |
Balance Sheet (Parentheticals)
Balance Sheet (Parentheticals) - Limited Partner [Member] - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Limited Partners, units authorized | 24,000 | 24,000 |
Limited Partners, units issued | 13,463 | 13,641 |
Limited Partners, units outstanding | 13,463 | 13,641 |
Statement of Income
Statement of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Rental Income | $ 718,486 | $ 754,601 |
Expenses: | ||
Partnership Administration – Affiliates | 105,537 | 111,769 |
Partnership Administration and Property Management – Unrelated Parties | 34,767 | 37,318 |
Depreciation and Amortization | 308,564 | 308,564 |
Total Expenses | 448,868 | 457,651 |
Operating Income | 269,618 | 296,950 |
Other Income: | ||
Interest Income | 6,245 | 2,923 |
Net Income | 275,863 | 299,873 |
Net Income Allocated: | ||
General Partners | 8,276 | 8,996 |
Limited Partners | $ 267,587 | $ 290,877 |
Net Income per Limited Partnership Unit (in Dollars per share) | $ 19.78 | $ 21 |
Weighted Average Units Outstanding – Basic and Diluted (in Shares) | 13,527 | 13,850 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 275,863 | $ 299,873 |
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 358,316 | 358,316 |
Increase (Decrease) in Payable to AEI Fund Management, Inc. | 13,770 | 4,912 |
Total Adjustments | 372,086 | 363,228 |
Net Cash Provided By (Used For) Operating Activities | 647,949 | 663,101 |
Cash Flows from Financing Activities: | ||
Distributions Paid to Partners | (569,903) | (578,334) |
Repurchase of Partnership Units | (141,493) | (288,142) |
Net Cash Provided By (Used For) Financing Activities | (711,396) | (866,476) |
Net Increase (Decrease) in Cash | (63,447) | (203,375) |
Cash, beginning of year | 913,966 | 1,117,341 |
Cash, end of year | $ 850,519 | $ 913,966 |
Statement of Changes in Partner
Statement of Changes in Partners' Capital - USD ($) | General Partner [Member] | Limited Partner [Member] | Total |
Balance at Dec. 31, 2016 | $ (13,011) | $ 8,369,357 | $ 8,356,346 |
Balance (in Shares) at Dec. 31, 2016 | 14,001.92 | ||
Balance at Dec. 31, 2017 | (24,751) | $ 7,816,966 | 7,792,215 |
Balance (in Shares) at Dec. 31, 2017 | 13,641 | ||
Distributions Declared | (15,862) | $ (560,000) | (575,862) |
Repurchase of Partnership Units | (4,874) | $ (283,268) | (288,142) |
Units Repurchased (in Shares) | (360.80) | ||
Net Income | 8,996 | $ 290,877 | 299,873 |
Balance at Dec. 31, 2018 | (37,817) | $ 7,394,501 | 7,356,684 |
Balance (in Shares) at Dec. 31, 2018 | 13,463 | ||
Distributions Declared | (17,097) | $ (552,804) | (569,901) |
Repurchase of Partnership Units | (4,245) | $ (137,248) | (141,493) |
Units Repurchased (in Shares) | (178.20) | ||
Net Income | $ 8,276 | $ 267,587 | $ 275,863 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | (1) Organization – AEI Income & Growth Fund XXII Limited Partnership (“Partnership”) was formed to acquire and lease commercial properties to operating tenants. The Partnership's operations are managed by AEI Fund Management XXI, Inc. (“AFM”), the Managing General Partner. Robert P. Johnson, the President and sole director of AFM, serves as the Individual General Partner. AFM is a wholly owned subsidiary of AEI Capital Corporation of which Mr. Johnson is the majority shareholder. AEI Fund Management, Inc. (“AEI”), an affiliate of AFM, performs the administrative and operating functions for the Partnership. The terms of the Partnership offering called for a subscription price of $1,000 per Limited Partnership Unit, payable on acceptance of the offer. The Partnership commenced operations on May 1, 1997 when minimum subscriptions of 1,500 Limited Partnership Units ($1,500,000) were accepted. The offering terminated January 9, 1999 when the extended offering period ended. The Partnership received subscriptions for 16,917.222 Limited Partnership Units. Under the terms of the Limited Partnership Agreement, the Limited Partners and General Partners contributed funds of $16,917,222 and $1,000, respectively. During operations, any Net Cash Flow, as defined, which the General Partners determine to distribute will be distributed 97% to the Limited Partners and 3% to the General Partners. Distributions to Limited Partners will be made pro rata by Units. Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the General Partners determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Partners and 1% to the General Partners until the Limited Partners receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 9% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow; (ii) any remaining balance will be distributed 90% to the Limited Partners and 10% to the General Partners. Distributions to the Limited Partners will be made pro rata by Units. For tax purposes, profits from operations, other than profits attributable to the sale, exchange, financing, refinancing or other disposition of property, will be allocated first in the same ratio in which, and to the extent, Net Cash Flow is distributed to the Partners for such year. Any additional profits will be allocated in the same ratio as the last dollar of Net Cash Flow is distributed. Net losses from operations will be allocated 99% to the Limited Partners and 1% to the General Partners. For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Partnership Agreement as follows: (i) first, to those partners with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Partners and 1% to the General Partners until the aggregate balance in the Limited Partners' capital accounts equals the sum of the Limited Partners' Adjusted Capital Contributions plus an amount equal to 9% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously allocated; (iii) third, the balance of any remaining gain will then be allocated 90% to the Limited Partners and 10% to the General Partners. Losses will be allocated 98% to the Limited Partners and 2% to the General Partners. The General Partners are not required to currently fund a deficit capital balance. Upon liquidation of the Partnership or withdrawal by a General Partner, the General Partners will contribute to the Partnership an amount equal to the lesser of the deficit balances in their capital accounts or 1% of total Limited Partners' and General Partners' capital contributions. In May 2015, the Managing General Partner mailed a Consent Statement (Proxy) seeking the consent of the Limited Partners to continue the Partnership for an additional 60 months or to initiate the final disposition, liquidation and distribution of all of the Partnership’s properties and assets. Approval of either proposal required the affirmative vote of holders of a majority of the outstanding units. On June 17, 2015, the votes were counted and neither proposal received the required majority vote. As a result, the Partnership will not liquidate and will continue in operation until the Limited Partners vote to authorize the sale of all of the Partnership's properties or December 31, 2046, as stated in the Limited Partnership Agreement. However, in approximately five years, the Managing General Partner expects to again submit the question to liquidate to a vote by the Limited Partners. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | (2) Summary of Significant Accounting Policies – Financial Statement Presentation The accounts of the Partnership are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes. Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with United States Generally Accepted Accounting Principles (US GAAP). Those estimates and assumptions may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Significant items, subject to such estimates and assumptions, include the carrying value of real estate held for investment, real estate held for sale and related intangible assets. The Partnership regularly assesses whether market events and conditions indicate that it is reasonably possible to recover the carrying amounts of its investments in real estate from future operations and sales. A change in those market events and conditions could have a material effect on the carrying amount of its real estate. Cash Concentrations of Credit Risk The Partnership's cash is deposited in one financial institution and at times during the year it may exceed FDIC insurance limits. Receivables Credit terms are extended to tenants in the normal course of business. The Partnership performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral. Receivables are recorded at their estimated net realizable value. The Partnership follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Partnership is of the belief that such accounts, if any, will be collectible in all material respects and thus an allowance is not necessary. Accounts are considered past due if payment is not made on a timely basis in accordance with the Partnership’s credit terms. Receivables considered uncollectible are written off. Income Taxes The income or loss of the Partnership for federal income tax reporting purposes is includable in the income tax returns of the partners. In general, no recognition has been given to income taxes in the accompanying financial statements. The tax return and the amount of distributable Partnership income or loss are subject to examination by federal and state taxing authorities. If such an examination results in changes to distributable Partnership income or loss, the taxable income of the partners would be adjusted accordingly. Primarily due to its tax status as a partnership, the Partnership has no significant tax uncertainties that require recognition or disclosure. The Partnership is no longer subject to U.S. federal income tax examinations for tax years before 2015, and with few exceptions, is no longer subject to state tax examinations for tax years before 2015. Revenue Recognition The Partnership's real estate is leased under net leases, classified as operating leases. The leases provide for base annual rental payments payable in monthly installments. The Partnership recognizes rental income according to the terms of the individual leases. For leases that contain stated rental increases, the increases are recognized in the year in which they are effective. Contingent rental payments are recognized when the contingencies on which the payments are based are satisfied and the rental payments become due under the terms of the leases. Real Estate Upon acquisition of real properties, the Partnership records them in the financial statements at cost. The purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market leases and the value of in-place leases. The allocation of the purchase price is based upon the fair value of each component of the property. Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management’s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset. The fair values of above market and below market in-place leases will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the non-cancelable term of the lease including any bargain renewal periods. The above market and below market lease values will be capitalized as intangible lease assets or liabilities. Above market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases. Below market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases, including any bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market and below market in-place lease values relating to that lease would be recorded as an adjustment to rental income. The fair values of in-place leases will include estimated direct costs associated with obtaining a new tenant, and opportunity costs associated with lost rentals which are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new tenant may include commissions, tenant improvements, and other direct costs and are estimated, in part, by management’s consideration of current market costs to execute a similar lease. These direct costs will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. The value of opportunity costs will be calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These intangibles will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. The Partnership tests real estate for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Partnership will hold and operate, it compares the carrying amount of the property to the estimated probability-weighted future undiscounted cash flows expected to result from the property and its eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of the property, the Partnership recognizes an impairment loss by the amount by which the carrying amount of the property exceeds the fair value of the property. For properties held for sale, the Partnership determines whether impairment has occurred by comparing the property’s estimated fair value less cost to sell to its current carrying value. If the carrying value is greater than the net realizable value, an impairment loss is recorded to reduce the carrying value of the property to its net realizable value. For financial reporting purposes, the buildings owned by the Partnership are depreciated using the straight-line method over an estimated useful life of 25 years. Intangible lease assets are amortized using the straight-line method for financial reporting purposes based on the remaining life of the lease. The disposition of a property or classification of a property as Real Estate Held for Sale by the Partnership does not represent a strategic shift that will have a major effect on the Partnership’s operations and financial results. Therefore, the results from operating and selling the property are included in continuing operations. The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method. Each tenant-in-common owns a separate, undivided interest in the properties. Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests. The financial statements reflect only this Partnership's percentage share of the properties' land, building, liabilities, revenues and expenses. The Partnership's properties are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which the properties are located. These laws could require the Partnership to investigate and remediate the effects of the release or disposal of hazardous materials at these locations if found. For each property, an environmental assessment is completed prior to acquisition. In addition, the lease agreements typically strictly prohibit the production, handling, or storage of hazardous materials (except where incidental to the tenant’s business such as use of cleaning supplies) in violation of applicable law to restrict environmental and other damage. Environmental liabilities are recorded when it is determined the liability is probable and the costs can reasonably be estimated. There were no environmental issues noted or liabilities recorded at December 31, 2018 and 2017. Fair Value Measurements As of December 31, 2018 and 2017, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis. Income Per Unit Income per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented. Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December 31, 2018 and 2017. Reportable Segments The Partnership invests in single tenant commercial properties throughout the United States that are net leased to tenants in various industries. Because these net leased properties have similar economic characteristics, the Partnership evaluates operating performance on an overall portfolio basis. Therefore, the Partnership’s properties are classified as one reportable segment. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09 regarding ASC Topic 606, Revenue from Contracts with Customers. This standard was developed to enable financial statement users to better understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities are to use a five-step contract review model to ensure revenue is recognized, measured and disclosed in accordance with this principle. Those steps include the following: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to each performance obligation in the contract, and (v) recognize revenue when or as the entity satisfies a performance obligation. Management has concluded that all of the Partnership’s material revenue streams fall outside of the scope of this guidance. The new standard may be applied retrospectively to each prior period presented or prospectively with the cumulative effect, if any, recognized as of the date of adoption. During 2018, the Partnership selected the modified retrospective transition method as of the date of adoption effective January 1, 2018. Management has concluded that the majority of total revenues consist of rental income from leasing arrangements, which are specifically excluded from the standard. The Partnership analyzed its remaining revenue streams, inclusive of gains and losses on real estate sales, and concluded there are no changes in revenue recognition with the adoption of the new standard. As such, adoption of the standard did not result in a cumulative adjustment recognized as of January 1, 2018, and the standard did not have a material impact on the Partnership’s financial statements. In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted, and is required to be applied prospectively to any transactions occurring within the period of adoption. We expect the new standard will result in all of our real estate acquisitions being considered asset acquisitions, whereby substantially all acquisition costs related to our real estate acquisitions will be capitalized. Prior to the adoption of the new standard, all of our real estate acquisitions completed after January 1, 2009, were considered acquisitions of businesses, whereby all acquisition-related costs were expensed as incurred. During 2018, the Partnership has adopted the accounting pronouncement effective January 1, 2018, and applied this guidance prospectively. The adoption did not have a material effect on the Partnership’s financial statements. Recently Issued Accounting Pronouncements In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements for the analysis of partners' capital for interim financial statements. Under the amendments, an analysis of changes in each caption of partners' capital presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Partnership anticipates its first presentation of year-to-date quarterly changes in partners' capital will be included in its Form 10Q for the quarter ended March 31, 2019. In February 2016, the FASB issued ASU 2016-02, which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments. The accounting guidance for lessors is largely unchanged. The ASU is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted. It is to be adopted using a modified retrospective approach. Management is currently evaluating the impact the adoption of this guidance will have on the Partnership’s financial statements and does not expect this guidance will have a material impact on the financial statements given the nature of the leases held by the Partnership. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | (3) Related Party Transactions – The Partnership owns the percentage interest shown below in the following properties as tenants-in-common with the affiliated entities listed: Advance Auto Parts store (65% – AEI Income & Growth Fund 25 LLC); Applebee’s restaurant (60% – AEI Income & Growth Fund 26 LLC); Tractor Supply Company store (50% – AEI Income & Growth Fund 24 LLC); Best Buy store (33% – AEI Income & Growth Fund 24 LLC and AEI Income & Growth Fund 27 LLC); Staples store (28% – AEI Income & Growth Fund 25 LLC); and PetSmart store (34% – AEI Accredited Investor Fund V LP). AEI received the following reimbursements for costs and expenses from the Partnership for the years ended December 31: 2018 2017 AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners. $ 105,537 $ 111,769 AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management. These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs. $ 34,767 $ 37,318 The payable to AEI Fund Management, Inc. represents the balance due for the services described in 3a and b. This balance is non-interest bearing and unsecured and is to be paid in the normal course of business. |
Real Estate Investments
Real Estate Investments | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Real Estate Disclosure [Text Block] | (4) Real Estate Investments – The Partnership leases its properties to tenants under net leases, classified as operating leases. Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property. For some leases, the Partnership is responsible for repairs to the structural components of the building, the roof, and the parking lot. At the time the properties were acquired, the remaining primary lease terms varied from 10 to 20 years, except for the Staples store, which had a remaining primary term of 8.4 years. The leases provide the tenants with two to five five-year renewal options subject to the same terms and conditions as the primary term. The leases for the Best Buy store and the Advance Auto Parts store were extended to end on March 31, 2024 and April 30, 2025, respectively. The Partnership's properties are commercial, single-tenant buildings. The Advance Auto Parts store was constructed in 2005 and acquired in 2006. The Applebee’s restaurant was constructed in 1996 and acquired in 2006. The Tractor Supply Company store was constructed in 2005 and acquired in 2007. The Best Buy store was constructed and acquired in 2008. The Staples store was constructed in 2010 and acquired in 2011. The PetSmart store was constructed and acquired in 2012. The St. Vincent Medical Clinic was constructed in 2010 and acquired in 2013. There have been no costs capitalized as improvements subsequent to the acquisitions, except for $3,007 of tenant improvements related to the Staples store. The cost of the properties not held for sale and related accumulated depreciation at December 31, 2018 are as follows: Property Land Buildings Total Accumulated Depreciation Advance Auto Parts, Indianapolis, IN $ 537,914 $ 706,259 $ 1,244,173 $ 340,182 Tractor Supply, Grand Forks, ND 238,547 1,165,327 1,403,874 557,411 Best Buy, Lake Geneva, WI 335,142 1,687,104 2,022,246 688,899 Staples, Clermont, FL 239,400 543,942 783,342 156,204 PetSmart, Galveston TX 340,000 280,048 620,048 76,086 St. Vincent Medical Clinic, Lonoke AR 170,000 898,523 1,068,523 199,170 $ 1,861,003 $ 5,281,203 $ 7,142,206 $ 2,017,952 For the years ended December 31, 2018 and 2017, the Partnership recognized depreciation expense of $265,272 for both years. The following schedule presents the cost and related accumulated amortization of acquired lease intangibles not held for sale at December 31: 2018 2017 Cost Accumulated Amortization Cost Accumulated Amortization In-Place Lease Intangibles (weighted average life of 41 and 53 months, respectively) $ 418,089 276,831 $ 418,089 $ 233,539 Above-Market Lease Intangibles (weighted average life of 55 and 67 months, respectively) 514,793 286,809 514,793 237,057 Acquired Intangible Lease Assets $ 932,882 563,640 $ 932,882 $ 470,596 For the years ended December 31, 2018 and 2017, the value of in-place lease intangibles amortized to expense was $43,292 and the decrease to rental income for above-market leases was $49,752 for both years. For lease intangibles not held for sale at December 31, 2018, the estimated amortization for the next five years is as follows: Amortization Expense for In-Place Lease Intangibles Decrease to Rental Income for Above-Market Leases 2019 $ 43,292 $ 49,752 2020 32,869 49,752 2021 29,396 49,752 2022 21,311 44,215 2023 14,390 34,513 $ 141,258 $ 227,984 In February 2018, the Partnership entered into an agreement with the tenant of the Advance Auto Parts store in Indianapolis, Indiana to extend the lease term five years to end on April 30, 2025. As part of the agreement, the annual rent decreased from $95,885 to $81,861 effective January 1, 2018. In addition, beginning on March 1, 2018, the tenant received free rent for four months that equaled $27,287. In July 2018, the Partnership entered into an agreement with the tenant of the Best Buy store in Lake Geneva, Wisconsin to extend the lease term five years to end on March 31, 2024. As part of the agreement, the annual rent decreased from $149,302 to $129,395 effective February 1, 2019. In addition, beginning on February 1, 2019, the tenant received free rent for one month that equaled $10,783. In December 2018, the Partnership decided to sell the Applebee’s restaurant in Crawfordsville, Indiana. In January 2019, the Partnership entered into an agreement to sell the property to an unrelated third party. The sale is subject to contingencies and may not be completed. If the sale is completed, the Partnership expects to receive net proceeds of approximately $1,863,000, which will result in a net gain of approximately $654,600. At December 31, 2018, the property was classified as Real Estate Held for Sale with a carrying value of $1,208,359. For properties owned as of December 31, 2018, the minimum future rent payments required by the leases are as follows: 2019 $ 771,095 2020 720,565 2021 604,273 2022 572,843 2023 525,069 Thereafter 599,053 $ 3,792,898 There were no contingent rents recognized in 2018 and 2017. |
Major Tenants
Major Tenants | 12 Months Ended |
Dec. 31, 2018 | |
Policy Text Block [Abstract] | |
Major Customers, Policy [Policy Text Block] | (5) Major Tenants – The following schedule presents rental income from individual tenants, or affiliated groups of tenants, who each contributed more than ten percent of the Partnership's total rental income for the years ended December 31: Tenants 2018 2017 Apple American Group $ 154,776 $ 154,776 Best Buy Stores, L.P. 149,302 149,302 Tractor Supply Company 115,437 115,437 St. Vincent Health System 111,948 107,481 Advance Stores Company 0 95,885 Aggregate rental income of major tenants $ 531,463 $ 622,881 Aggregate rental income of major tenants as a percentage of total rental income 74% 83% |
Partners' Capital
Partners' Capital | 12 Months Ended |
Dec. 31, 2018 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital Notes Disclosure [Text Block] | (6) Partners’ Capital – For the years ended December 31, 2018 and 2017, the Partnership declared distributions of $569,901 and $575,862, respectively. The Limited Partners received distributions of $552,804 and $560,000 and the General Partners received distributions of $17,097 and $15,862 for the years, respectively. The Limited Partners' distributions represented $40.87 and $40.43 per Limited Partnership Unit outstanding using 13,527 and 13,850 weighted average Units in 2018 and 2017, respectively. The distributions represented $9.59 and $14.04 per Unit of Net Income and $31.28 and $26.39 per Unit of return of capital in 2018 and 2017, respectively. As part of the distributions discussed above, the Partnership distributed net sale proceeds (from a property sale completed in 2015) of $70,707 in 2017. The Limited Partners received distributions of $70,000 and the General Partners received distributions of $707. The Limited Partners’ distributions represented $5.04 per Unit. The Partnership may repurchase Units from Limited Partners who have tendered their Units to the Partnership. Such Units may be acquired at a discount. The Partnership will not be obligated to purchase in any year any number of Units that, when aggregated with all other transfers of Units that have occurred since the beginning of the same calendar year (excluding Permitted Transfers as defined in the Partnership Agreement), would exceed 5% of the total number of Units outstanding on January 1 of such year. In no event shall the Partnership be obligated to purchase Units if, in the sole discretion of the Managing General Partner, such purchase would impair the capital or operation of the Partnership. During 2018, the Partnership repurchased a total of 178.20 Units for $137,248 from 13 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using Net Cash Flow from operations. On April 1, 2017, the Partnership repurchased a total of 123.00 Units for $96,641 from four Limited Partners. The Partnership acquired these Units using Net Cash Flow from operations. On October 1, 2017, the Partnership repurchased a total of 237.80 Units for $186,627 from eight Limited Partners. The Partnership acquired these Units using net sale proceeds. The repurchases increase the remaining Limited Partners' ownership interest in the Partnership. As a result of these repurchases and pursuant to the Partnership Agreement, the General Partners received distributions of $4,245 and $4,874 in 2018 and 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | (7) Income Taxes – The following is a reconciliation of net income for financial reporting purposes to income reported for federal income tax purposes for the years ended December 31: 2018 2017 Net Income for Financial Reporting Purposes $ 275,863 $ 299,873 Depreciation for Tax Purposes Under Depreciation and Amortization for Financial Reporting Purposes 145,264 144,635 Taxable Income to Partners $ 421,127 $ 444,508 The following is a reconciliation of Partners' capital for financial reporting purposes to Partners' capital reported for federal income tax purposes for the years ended December 31: 2018 2017 Partners' Capital for Financial Reporting Purposes $ 7,356,684 $ 7,792,215 Adjusted Tax Basis of Investments in Real Estate Over Net Investments in Real Estate for Financial Reporting Purposes 1,244,289 1,099,025 Income Accrued for Tax Purposes Over Income for Financial Reporting Purposes 9,620 9,620 Syndication Costs Treated as Reduction of Capital For Financial Reporting Purposes 2,418,726 2,418,726 Partners' Capital for Tax Reporting Purposes $ 11,029,319 $ 11,319,586 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Distribution Policy, Members or Limited Partners, Description | During operations, any Net Cash Flow, as defined, which the General Partners determine to distribute will be distributed 97% to the Limited Partners and 3% to the General Partners.  Distributions to Limited Partners will be made pro rata by Units.Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the General Partners determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Partners and 1% to the General Partners until the Limited Partners receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 9% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow; (ii) any remaining balance will be distributed 90% to the Limited Partners and 10% to the General Partners.  Distributions to the Limited Partners will be made pro rata by Units. |
Key Provisions of Operating or Partnership Agreement, Description | For tax purposes, profits from operations, other than profits attributable to the sale, exchange, financing, refinancing or other disposition of property, will be allocated first in the same ratio in which, and to the extent, Net Cash Flow is distributed to the Partners for such year.  Any additional profits will be allocated in the same ratio as the last dollar of Net Cash Flow is distributed.  Net losses from operations will be allocated 99% to the Limited Partners and 1% to the General Partners.For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Partnership Agreement as follows: (i) first, to those partners with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Partners and 1% to the General Partners until the aggregate balance in the Limited Partners' capital accounts equals the sum of the Limited Partners' Adjusted Capital Contributions plus an amount equal to 9% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously allocated; (iii) third, the balance of any remaining gain will then be allocated 90% to the Limited Partners and 10% to the General Partners.  Losses will be allocated 98% to the Limited Partners and 2% to the General Partners.The General Partners are not required to currently fund a deficit capital balance.  Upon liquidation of the Partnership or withdrawal by a General Partner, the General Partners will contribute to the Partnership an amount equal to the lesser of the deficit balances in their capital accounts or 1% of total Limited Partners' and General Partners' capital contributions |
Basis of Accounting, Policy [Policy Text Block] | Financial Statement Presentation The accounts of the Partnership are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes. |
Use of Estimates, Policy [Policy Text Block] | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with United States Generally Accepted Accounting Principles (US GAAP). Those estimates and assumptions may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Significant items, subject to such estimates and assumptions, include the carrying value of real estate held for investment, real estate held for sale and related intangible assets. The Partnership regularly assesses whether market events and conditions indicate that it is reasonably possible to recover the carrying amounts of its investments in real estate from future operations and sales. A change in those market events and conditions could have a material effect on the carrying amount of its real estate. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Cash Concentrations of Credit Risk The Partnership's cash is deposited in one financial institution and at times during the year it may exceed FDIC insurance limits. |
Receivables, Policy [Policy Text Block] | Receivables Credit terms are extended to tenants in the normal course of business. The Partnership performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral. Receivables are recorded at their estimated net realizable value. The Partnership follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Partnership is of the belief that such accounts, if any, will be collectible in all material respects and thus an allowance is not necessary. Accounts are considered past due if payment is not made on a timely basis in accordance with the Partnership’s credit terms. Receivables considered uncollectible are written off |
Income Tax, Policy [Policy Text Block] | Income Taxes The income or loss of the Partnership for federal income tax reporting purposes is includable in the income tax returns of the partners. In general, no recognition has been given to income taxes in the accompanying financial statements. The tax return and the amount of distributable Partnership income or loss are subject to examination by federal and state taxing authorities. If such an examination results in changes to distributable Partnership income or loss, the taxable income of the partners would be adjusted accordingly. Primarily due to its tax status as a partnership, the Partnership has no significant tax uncertainties that require recognition or disclosure. The Partnership is no longer subject to U.S. federal income tax examinations for tax years before 2015, and with few exceptions, is no longer subject to state tax examinations for tax years before 2015. |
Revenue Recognition, Leases [Policy Text Block] | Revenue Recognition The Partnership's real estate is leased under net leases, classified as operating leases. The leases provide for base annual rental payments payable in monthly installments. The Partnership recognizes rental income according to the terms of the individual leases. For leases that contain stated rental increases, the increases are recognized in the year in which they are effective. Contingent rental payments are recognized when the contingencies on which the payments are based are satisfied and the rental payments become due under the terms of the leases. |
Property, Plant and Equipment, Policy [Policy Text Block] | Real Estate Upon acquisition of real properties, the Partnership records them in the financial statements at cost. The purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market leases and the value of in-place leases. The allocation of the purchase price is based upon the fair value of each component of the property. Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management’s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset. The fair values of above market and below market in-place leases will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the non-cancelable term of the lease including any bargain renewal periods. The above market and below market lease values will be capitalized as intangible lease assets or liabilities. Above market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases. Below market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases, including any bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market and below market in-place lease values relating to that lease would be recorded as an adjustment to rental income. The fair values of in-place leases will include estimated direct costs associated with obtaining a new tenant, and opportunity costs associated with lost rentals which are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new tenant may include commissions, tenant improvements, and other direct costs and are estimated, in part, by management’s consideration of current market costs to execute a similar lease. These direct costs will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. The value of opportunity costs will be calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These intangibles will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. The Partnership tests real estate for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Partnership will hold and operate, it compares the carrying amount of the property to the estimated probability-weighted future undiscounted cash flows expected to result from the property and its eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of the property, the Partnership recognizes an impairment loss by the amount by which the carrying amount of the property exceeds the fair value of the property. For properties held for sale, the Partnership determines whether impairment has occurred by comparing the property’s estimated fair value less cost to sell to its current carrying value. If the carrying value is greater than the net realizable value, an impairment loss is recorded to reduce the carrying value of the property to its net realizable value. For financial reporting purposes, the buildings owned by the Partnership are depreciated using the straight-line method over an estimated useful life of 25 years. Intangible lease assets are amortized using the straight-line method for financial reporting purposes based on the remaining life of the lease. The disposition of a property or classification of a property as Real Estate Held for Sale by the Partnership does not represent a strategic shift that will have a major effect on the Partnership’s operations and financial results. Therefore, the results from operating and selling the property are included in continuing operations. The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method. Each tenant-in-common owns a separate, undivided interest in the properties. Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests. The financial statements reflect only this Partnership's percentage share of the properties' land, building, liabilities, revenues and expenses. The Partnership's properties are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which the properties are located. These laws could require the Partnership to investigate and remediate the effects of the release or disposal of hazardous materials at these locations if found. For each property, an environmental assessment is completed prior to acquisition. In addition, the lease agreements typically strictly prohibit the production, handling, or storage of hazardous materials (except where incidental to the tenant’s business such as use of cleaning supplies) in violation of applicable law to restrict environmental and other damage. Environmental liabilities are recorded when it is determined the liability is probable and the costs can reasonably be estimated. There were no environmental issues noted or liabilities recorded at December 31, 2018 and 2017. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements As of December 31, 2018 and 2017, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis. |
Earnings Per Share, Policy [Policy Text Block] | Income Per Unit Income per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented. Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December 31, 2018 and 2017 |
Segment Reporting, Policy [Policy Text Block] | Reportable Segments The Partnership invests in single tenant commercial properties throughout the United States that are net leased to tenants in various industries. Because these net leased properties have similar economic characteristics, the Partnership evaluates operating performance on an overall portfolio basis. Therefore, the Partnership’s properties are classified as one reportable segment |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09 regarding ASC Topic 606, Revenue from Contracts with Customers. This standard was developed to enable financial statement users to better understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities are to use a five-step contract review model to ensure revenue is recognized, measured and disclosed in accordance with this principle. Those steps include the following: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to each performance obligation in the contract, and (v) recognize revenue when or as the entity satisfies a performance obligation. Management has concluded that all of the Partnership’s material revenue streams fall outside of the scope of this guidance. The new standard may be applied retrospectively to each prior period presented or prospectively with the cumulative effect, if any, recognized as of the date of adoption. During 2018, the Partnership selected the modified retrospective transition method as of the date of adoption effective January 1, 2018. Management has concluded that the majority of total revenues consist of rental income from leasing arrangements, which are specifically excluded from the standard. The Partnership analyzed its remaining revenue streams, inclusive of gains and losses on real estate sales, and concluded there are no changes in revenue recognition with the adoption of the new standard. As such, adoption of the standard did not result in a cumulative adjustment recognized as of January 1, 2018, and the standard did not have a material impact on the Partnership’s financial statements. In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted, and is required to be applied prospectively to any transactions occurring within the period of adoption. We expect the new standard will result in all of our real estate acquisitions being considered asset acquisitions, whereby substantially all acquisition costs related to our real estate acquisitions will be capitalized. Prior to the adoption of the new standard, all of our real estate acquisitions completed after January 1, 2009, were considered acquisitions of businesses, whereby all acquisition-related costs were expensed as incurred. During 2018, the Partnership has adopted the accounting pronouncement effective January 1, 2018, and applied this guidance prospectively. The adoption did not have a material effect on the Partnership’s financial statements. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements for the analysis of partners' capital for interim financial statements. Under the amendments, an analysis of changes in each caption of partners' capital presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Partnership anticipates its first presentation of year-to-date quarterly changes in partners' capital will be included in its Form 10Q for the quarter ended March 31, 2019. In February 2016, the FASB issued ASU 2016-02, which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments. The accounting guidance for lessors is largely unchanged. The ASU is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted. It is to be adopted using a modified retrospective approach. Management is currently evaluating the impact the adoption of this guidance will have on the Partnership’s financial statements and does not expect this guidance will have a material impact on the financial statements given the nature of the leases held by the Partnership. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Related Party Transactions 2018 2017 AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners. $ 105,537 $ 111,769 AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management. These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs. $ 34,767 $ 37,318 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Properties not held for sale Property Land Buildings Total Accumulated Depreciation Advance Auto Parts, Indianapolis, IN $ 537,914 $ 706,259 $ 1,244,173 $ 340,182 Tractor Supply, Grand Forks, ND 238,547 1,165,327 1,403,874 557,411 Best Buy, Lake Geneva, WI 335,142 1,687,104 2,022,246 688,899 Staples, Clermont, FL 239,400 543,942 783,342 156,204 PetSmart, Galveston TX 340,000 280,048 620,048 76,086 St. Vincent Medical Clinic, Lonoke AR 170,000 898,523 1,068,523 199,170 $ 1,861,003 $ 5,281,203 $ 7,142,206 $ 2,017,952 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Acquired lease intangibles not held for sale 2018 2017 Cost Accumulated Amortization Cost Accumulated Amortization In-Place Lease Intangibles (weighted average life of 41 and 53 months, respectively) $ 418,089 276,831 $ 418,089 $ 233,539 Above-Market Lease Intangibles (weighted average life of 55 and 67 months, respectively) 514,793 286,809 514,793 237,057 Acquired Intangible Lease Assets $ 932,882 563,640 $ 932,882 $ 470,596 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Estimated Amortization Amortization Expense for In-Place Lease Intangibles Decrease to Rental Income for Above-Market Leases 2019 $ 43,292 $ 49,752 2020 32,869 49,752 2021 29,396 49,752 2022 21,311 44,215 2023 14,390 34,513 $ 141,258 $ 227,984 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum future rent 2019 $ 771,095 2020 720,565 2021 604,273 2022 572,843 2023 525,069 Thereafter 599,053 $ 3,792,898 |
Major Tenants (Tables)
Major Tenants (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Policy Text Block [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Major Tenants Tenants 2018 2017 Apple American Group $ 154,776 $ 154,776 Best Buy Stores, L.P. 149,302 149,302 Tractor Supply Company 115,437 115,437 St. Vincent Health System 111,948 107,481 Advance Stores Company 0 95,885 Aggregate rental income of major tenants $ 531,463 $ 622,881 Aggregate rental income of major tenants as a percentage of total rental income 74% 83% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule Of GAAP To Federal Taxable Income | Reconciliation of net income for financial reporting 2018 2017 Net Income for Financial Reporting Purposes $ 275,863 $ 299,873 Depreciation for Tax Purposes Under Depreciation and Amortization for Financial Reporting Purposes 145,264 144,635 Taxable Income to Partners $ 421,127 $ 444,508 |
Schedule Of GAAP To Federal Tax Basis | Reconciliation of Partners' capital for financial reporting 2018 2017 Partners' Capital for Financial Reporting Purposes $ 7,356,684 $ 7,792,215 Adjusted Tax Basis of Investments in Real Estate Over Net Investments in Real Estate for Financial Reporting Purposes 1,244,289 1,099,025 Income Accrued for Tax Purposes Over Income for Financial Reporting Purposes 9,620 9,620 Syndication Costs Treated as Reduction of Capital For Financial Reporting Purposes 2,418,726 2,418,726 Partners' Capital for Tax Reporting Purposes $ 11,029,319 $ 11,319,586 |
Organization (Details)
Organization (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 09, 1999 | May 01, 1997 |
Limited Partner [Member] | |||||
Organization (Details) [Line Items] | |||||
Capital Units, Value | $ 1,000 | ||||
Limited Partners' Capital Account, Units Outstanding (in Shares) | 13,463 | 13,641 | 14,001.92 | 16,917.222 | 1,500 |
Limited Partners' Contributed Capital | $ 16,917,222 | $ 1,500,000 | |||
General Partner [Member] | |||||
Organization (Details) [Line Items] | |||||
General Partners' Contributed Capital | $ 1,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - Related Party Transactions - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | ||
AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners. | $ 105,537 | $ 111,769 |
AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management. These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs. | $ 34,767 | $ 37,318 |
Real Estate Investments (Detail
Real Estate Investments (Details) - USD ($) | Jul. 01, 2018 | Feb. 01, 2018 | Jan. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 01, 2019 | Mar. 01, 2018 |
Real Estate Investments (Details) [Line Items] | ||||||||
Depreciation, Nonproduction | $ 265,272 | $ 265,272 | ||||||
Leases, Acquired-in-Place [Member] | ||||||||
Real Estate Investments (Details) [Line Items] | ||||||||
Amortization of Intangible Assets | 43,292 | 43,292 | ||||||
Above Market Leases [Member] | ||||||||
Real Estate Investments (Details) [Line Items] | ||||||||
Amortization of above and below Market Leases | 49,752 | 49,752 | ||||||
Applebees Crawfordsville IN | ||||||||
Real Estate Investments (Details) [Line Items] | ||||||||
Property, Plant and Equipment, Gross | 1,208,359 | |||||||
Advance Auto Parts Indianapolis IN | ||||||||
Real Estate Investments (Details) [Line Items] | ||||||||
Average Lease Term | In February 2018, the Partnership entered into an agreement with the tenant of the Advance Auto Parts store in Indianapolis, Indiana to extend the lease term five years to end on April 30, 2025 | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 81,861 | $ 95,885 | ||||||
Allowance for Notes, Loans and Financing Receivable, Current | $ 27,287 | |||||||
Best Buy Lake Geneva WI | ||||||||
Real Estate Investments (Details) [Line Items] | ||||||||
Average Lease Term | In July 2018, the Partnership entered into an agreement with the tenant of the Best Buy store in Lake Geneva, Wisconsin to extend the lease term five years to end on March 31, 2024. | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 149,302 | $ 129,395 | ||||||
Allowance for Notes, Loans and Financing Receivable, Current | $ 10,783 |
Real Estate Investments (Detai
Real Estate Investments (Details) - Real Estate Held for Investment | Dec. 31, 2018USD ($) |
Property, Plant and Equipment [Line Items] | |
Land | $ 1,861,003 |
Buildings | 5,281,203 |
Total | 7,142,206 |
Accumulated Depreciation | 2,017,952 |
Advance Auto Parts Indianapolis IN | |
Property, Plant and Equipment [Line Items] | |
Land | 537,914 |
Buildings | 706,259 |
Total | 1,244,173 |
Accumulated Depreciation | 340,182 |
Tractor Supply Grand Forks ND | |
Property, Plant and Equipment [Line Items] | |
Land | 238,547 |
Buildings | 1,165,327 |
Total | 1,403,874 |
Accumulated Depreciation | 557,411 |
Best Buy Lake Geneva WI | |
Property, Plant and Equipment [Line Items] | |
Land | 335,142 |
Buildings | 1,687,104 |
Total | 2,022,246 |
Accumulated Depreciation | 688,899 |
Staples Clermont FL | |
Property, Plant and Equipment [Line Items] | |
Land | 239,400 |
Buildings | 543,942 |
Total | 783,342 |
Accumulated Depreciation | 156,204 |
PetSmart Galveston TX | |
Property, Plant and Equipment [Line Items] | |
Land | 340,000 |
Buildings | 280,048 |
Total | 620,048 |
Accumulated Depreciation | 76,086 |
St Vincent Lonoke AR | |
Property, Plant and Equipment [Line Items] | |
Land | 170,000 |
Buildings | 898,523 |
Total | 1,068,523 |
Accumulated Depreciation | $ 199,170 |
Real Estate Investments (Det_2
Real Estate Investments (Details) - Acquired Lease Intangibles - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Leases, Acquired-in-Place [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 418,089 | $ 418,089 |
Accumulated Amortization | 276,831 | 233,539 |
Above Market Leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 514,793 | 514,793 |
Accumulated Amortization | 286,809 | 237,057 |
Cost | 932,882 | 932,882 |
Accumulated Amortization | $ 563,640 | $ 470,596 |
Real Estate Investments (Det_3
Real Estate Investments (Details) - Acquired Lease Intangibles (Parentheticals) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases, Acquired-in-Place [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average life | 41 months | 53 months |
Above Market Leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average life | 55 months | 67 months |
Real Estate Investments (Det_4
Real Estate Investments (Details) - Estimated Amortization of Lease Intangibles - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases, Acquired-in-Place [Member] | |||||
Real Estate Investments (Details) - Estimated Amortization of Lease Intangibles [Line Items] | |||||
Amortization Expense for In-Place Lease Intangibles | $ 43,292 | ||||
Amortization Expense for In-Place Lease Intangibles | $ 32,869 | ||||
Amortization Expense for In-Place Lease Intangibles | $ 29,396 | ||||
Amortization Expense for In-Place Lease Intangibles | $ 21,311 | ||||
Amortization Expense for In-Place Lease Intangibles | $ 14,390 | ||||
Amortization Expense for In-Place Lease Intangibles | 141,258 | ||||
Above Market Leases [Member] | |||||
Real Estate Investments (Details) - Estimated Amortization of Lease Intangibles [Line Items] | |||||
Decrease to Rental Income for Above-Market Leases | $ 49,752 | ||||
Decrease to Rental Income for Above-Market Leases | $ 49,752 | ||||
Decrease to Rental Income for Above-Market Leases | $ 49,752 | ||||
Decrease to Rental Income for Above-Market Leases | $ 44,215 | ||||
Decrease to Rental Income for Above-Market Leases | 34,513 | ||||
Decrease to Rental Income for Above-Market Leases | $ 227,984 |
Real Estate Investments (Det_5
Real Estate Investments (Details) - Minimum Future Payments - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Minimum Future Payments [Abstract] | |||||
2019 | $ 771,095 | ||||
2020 | $ 720,565 | ||||
2021 | $ 604,273 | ||||
2022 | $ 572,843 | ||||
2023 | $ 525,069 | ||||
Thereafter | 599,053 | ||||
$ 3,792,898 |
Major Tenants (Details) - Major
Major Tenants (Details) - Major Tenants - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, Major Customer [Line Items] | ||
Major Tenants | $ 531,463 | $ 622,881 |
Aggregate rental income of major tenants as a percentage of total rental income | 74.00% | 83.00% |
Apple American Group | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | $ 154,776 | $ 154,776 |
Best Buy Stores LP | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | 149,302 | 149,302 |
Tractor Supply Company | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | 115,437 | 115,437 |
St. Vincent Health System | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | 111,948 | 107,481 |
Advance Stores Company | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | $ 0 | $ 95,885 |
Partners' Capital (Details)
Partners' Capital (Details) - USD ($) | Oct. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Partners' Capital (Details) [Line Items] | ||||
Partners' Capital Account, Distributions | $ 569,901 | $ 575,862 | ||
SaleProceedsDistributionMadeToMemberOrLimitedPartner | 70,707 | |||
Partners' Capital Account, Redemptions | 141,493 | 288,142 | ||
Limited Partner [Member] | ||||
Partners' Capital (Details) [Line Items] | ||||
Partners' Capital Account, Distributions | $ 552,804 | $ 560,000 | ||
Distributions Per Limited Partnership Unit Outstanding, Basic (in Dollars per share) | $ 40.87 | $ 40.43 | ||
Weighted Average Limited Partnership Units Outstanding, Basic (in Shares) | 13,527 | 13,850 | ||
DistributionsPerUnitOfNetIncome (in Dollars per Share) | 9.59 | 14.04 | ||
DistributionsPerUnitOfReturnOfCapital (in Dollars per Share) | 31.28 | 26.39 | ||
SaleProceedsDistributionMadeToMemberOrLimitedPartner | $ 70,000 | |||
Sale Proceeds Distribution Made to Limited Partner Per Unit | $ 5.04 | |||
Partners' Capital Account, Units, Redeemed (in Shares) | 237.80 | 123 | 178.20 | 360.80 |
Partners' Capital Account, Redemptions | $ 186,627 | $ 96,641 | $ 137,248 | $ 283,268 |
General Partner [Member] | ||||
Partners' Capital (Details) [Line Items] | ||||
Partners' Capital Account, Distributions | 17,097 | 15,862 | ||
SaleProceedsDistributionMadeToMemberOrLimitedPartner | 707 | |||
Partners' Capital Account, Redemptions | $ 4,245 | $ 4,874 |
Income Taxes (Details) - Federa
Income Taxes (Details) - Federal Taxable Income Reconciliation - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Taxable Income Reconciliation [Abstract] | ||
Net Income for Financial Reporting Purposes | $ 275,863 | $ 299,873 |
Depreciation for Tax Purposes Under Depreciation and Amortization for Financial Reporting Purposes | 145,264 | 144,635 |
Taxable Income to Partners | $ 421,127 | $ 444,508 |
Income Taxes (Details) - Fede_2
Income Taxes (Details) - Federal Tax Partners' Capital - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Tax Partners' Capital [Abstract] | ||
Partners' Capital for Financial Reporting Purposes | $ 7,356,684 | $ 7,792,215 |
Adjusted Tax Basis of Investments in Real Estate Over Net Investments in Real Estate for Financial Reporting Purposes | 1,244,289 | 1,099,025 |
Income Accrued for Tax Purposes Over Income for Financial Reporting Purposes | 9,620 | 9,620 |
Syndication Costs Treated as Reduction of Capital For Financial Reporting Purposes | 2,418,726 | 2,418,726 |
Partners' Capital for Tax Reporting Purposes | $ 11,029,319 | $ 11,319,586 |