Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | AEI Income & Growth Fund 26 LLC |
Document Type | 10-K |
Current Fiscal Year End Date | -19 |
Entity Common Stock, Shares Outstanding | 1,771,597 |
Entity Public Float | $0 |
Amendment Flag | FALSE |
Entity Central Index Key | 1326321 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Smaller Reporting Company |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | 31-Dec-14 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Balance_Sheet
Balance Sheet (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ||
Cash | $2,671,184 | $306,395 |
Real Estate Investments: | ||
Land | 4,430,889 | 4,855,829 |
Buildings | 8,832,622 | 10,332,327 |
Acquired Intangible Lease Assets | 420,445 | 257,767 |
Real Estate Held for Investment, at cost | 13,683,956 | 15,445,923 |
Accumulated Depreciation and Amortization | 2,385,244 | 2,658,316 |
Real Estate Held for Investment, Net | 11,298,712 | 12,787,607 |
Total Assets | 13,969,896 | 13,094,002 |
Current Liabilities: | ||
Payable to AEI Fund Management, Inc. | 67,598 | 9,784 |
Distributions Payable | 513,860 | 236,082 |
Unearned Rent | 7,269 | 0 |
Total Current Liabilities | 588,727 | 245,866 |
Long-term Liabilities: | ||
Acquired Below-Market Lease Intangibles, Net | 74,964 | 81,168 |
Members’ Equity (Deficit): | ||
Managing Members | 12,599 | -10,919 |
Limited Members – 10,000,000 Units authorized; 1,771,597 and 1,780,725 Units issued and outstanding as of December 31, 2014 and 2013, respectively | 13,293,606 | 12,777,887 |
Total Members’ Equity | 13,306,205 | 12,766,968 |
Total Liabilities and Members’ Equity | $13,969,896 | $13,094,002 |
Balance_Sheet_Parentheticals
Balance Sheet (Parentheticals) (Limited Partner [Member]) | Dec. 31, 2014 | Dec. 31, 2013 |
Limited Partner [Member] | ||
Limited Members, units authorized | 10,000,000 | 10,000,000 |
Limited Members, units issued | 1,771,597 | 1,780,725 |
Limited Members, units outstanding | 1,771,597 | 1,780,725 |
Statement_of_Income
Statement of Income (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Rental Income | $1,142,918 | $1,207,519 |
Expenses: | ||
LLC Administration – Affiliates | 150,415 | 140,613 |
LLC Administration and Property Management – Unrelated Parties | 32,962 | 29,137 |
Property Acquisition | 37,042 | 0 |
Depreciation and Amortization | 409,613 | 438,478 |
Total Expenses | 630,032 | 608,228 |
Operating Income | 512,886 | 599,291 |
Other Income: | ||
Income from Equity Method Investments | 1,306,822 | 0 |
Interest Income | 1,922 | 644 |
Total Other Income | 1,308,744 | 644 |
Net Income | 1,821,630 | 599,935 |
Net Income Allocated: | ||
Managing Members | 56,434 | 17,998 |
Limited Members | $1,765,196 | $581,937 |
Net Income per LLC Unit (in Dollars per share) | $0.99 | $0.33 |
Weighted Average Units Outstanding – Basic and Diluted (in Shares) | 1,776,144 | 1,784,275 |
Statement_of_Cash_Flows
Statement of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities: | ||
Net Income | $1,821,630 | $599,935 |
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 403,409 | 432,274 |
Income from Equity Method Investments | 1,306,822 | 0 |
Increase (Decrease) in Payable to AEI Fund Management, Inc. | 57,814 | -7,342 |
Increase (Decrease) in Unearned Rent | 7,269 | 0 |
Total Adjustments | -838,330 | 424,932 |
Net Cash Provided By Operating Activities | 983,300 | 1,024,867 |
Cash Flows from Investing Activities: | ||
Investments in Real Estate | 1,292,220 | 0 |
Cash Paid for Equity Method Investments | 42,273 | 0 |
Proceeds from Equity Method Investments | 3,720,597 | 0 |
Net Cash Provided By Investing Activities | 2,386,104 | 0 |
Cash Flows from Financing Activities: | ||
Distributions Paid to Members | 944,330 | 941,411 |
Repurchase of LLC Units | 60,285 | 88,145 |
Net Cash Used For Financing Activities | -1,004,615 | -1,029,556 |
Net Increase (Decrease) in Cash | 2,364,789 | -4,689 |
Cash, beginning of year | 306,395 | 311,084 |
Cash, end of year | 2,671,184 | 306,395 |
Supplemental Disclosure of Non-Cash Investing Activities: | ||
Contribution of Real Estate in Exchange for Equity Method Investments | $2,371,502 | $0 |
Statement_of_Changes_in_Member
Statement of Changes in Members' Equity (USD $) | Managing Member [Member] | Limited Member [Member] | Total |
Balance, December 31, 2012 at Dec. 31, 2012 | $2,058 | $13,197,447 | $13,199,505 |
Balance, December 31, 2012 (in Shares) at Dec. 31, 2012 | 1,792,925 | ||
Distributions Declared | 28,330 | 915,997 | 944,327 |
Repurchase of LLC Units | 2,645 | 85,500 | 88,145 |
Units Repurchased (in Shares) | 12,200 | ||
Net Income | 17,998 | 581,937 | 599,935 |
Balance at Dec. 31, 2013 | -10,919 | 12,777,887 | 12,766,968 |
Balance (in Shares) at Dec. 31, 2013 | 1,780,725 | ||
Distributions Declared | 31,108 | 1,191,000 | 1,222,108 |
Repurchase of LLC Units | 1,808 | 58,477 | 60,285 |
Units Repurchased (in Shares) | 9,128.50 | ||
Net Income | 56,434 | 1,765,196 | 1,821,630 |
Balance at Dec. 31, 2014 | $12,599 | $13,293,606 | $13,306,205 |
Balance (in Shares) at Dec. 31, 2014 | 1,771,596.50 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | (1) Organization – |
AEI Income & Growth Fund 26 LLC (“Company”), a Limited Liability Company, was formed on March 14, 2005 to acquire and lease commercial properties to operating tenants. The Company's operations are managed by AEI Fund Management XXI, Inc. (“AFM”), the Managing Member. Robert P. Johnson, the President and sole director of AFM, serves as the Special Managing Member. 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 Company. | |
The terms of the offering called for a subscription price of $10 per LLC Unit, payable on acceptance of the offer. The Company commenced operations on April 3, 2006 when minimum subscriptions of 150,000 LLC Units ($1,500,000) were accepted. The offering terminated October 19, 2007, when the extended offering period expired. The Company received subscriptions for 1,832,736 Units. Under the terms of the Operating Agreement, the Limited Members and Managing Members contributed funds of $18,327,360 and $1,000, respectively. The Company shall continue until December 31, 2055, unless dissolved, terminated and liquidated prior to that date. | |
During operations, any Net Cash Flow, as defined, which the Managing Members determine to distribute will be distributed 97% to the Limited Members and 3% to the Managing Members. Distributions to Limited Members will be made pro rata by Units. | |
Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the Managing Members determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Members and 1% to the Managing Members until the Limited Members receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 6.5% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow; (ii) any remaining balance will be distributed 90% to the Limited Members and 10% to the Managing Members. Distributions to the Limited Members will be made pro rata by Units. | |
For tax purposes, profits from operations, other than profits attributable to the sale, exchange, financing, refinancing or other disposition of property, will be allocated 97% to the Limited Members and 3% to the Managing Members. Net losses from operations will be allocated 99% to the Limited Members and 1% to the Managing Members. | |
For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Operating Agreement as follows: (i) first, to those Members with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Members and 1% to the Managing Members until the aggregate balance in the Limited Members' capital accounts equals the sum of the Limited Members' Adjusted Capital Contributions plus an amount equal to 6.5% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously allocated; (iii) third, the balance of any remaining gain will then be allocated 90% to the Limited Members and 10% to the Managing Members. Losses will be allocated 99% to the Limited Members and 1% to the Managing Members. | |
The Managing Members are not required to currently fund a deficit capital balance. Upon liquidation of the Company or withdrawal by a Managing Member, the Managing Members will contribute to the Company an amount equal to the lesser of the deficit balances in their capital accounts or 1.01% of the total capital contributions of the Limited Members over the amount previously contributed by the Managing Members. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | (2) Summary of Significant Accounting Policies – |
Financial Statement Presentation | |
The accounts of the Company 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 Company 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 Company'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 Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral. | |
Receivables are recorded at their estimated net realizable value. The Company 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 Company 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 Company’s credit terms. Receivables considered uncollectible are written off. | |
Income Taxes | |
The income or loss of the Company for federal income tax reporting purposes is includable in the income tax returns of the Members. In general, no recognition has been given to income taxes in the accompanying financial statements. | |
The tax return and the amount of distributable Company income or loss are subject to examination by federal and state taxing authorities. If such an examination results in changes to distributable Company income or loss, the taxable income of the members would be adjusted accordingly. Primarily due to its tax status as a partnership, the Company has no significant tax uncertainties that require recognition or disclosure. The Company is no longer subject to U.S. federal income tax examinations for tax years before 2011, and with few exceptions, is no longer subject to state tax examinations for tax years before 2011. | |
Revenue Recognition | |
The Company'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 Company 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 Company 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 terms of the respective leases. Below market leases 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 Company tests real estate for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Company 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 Company 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 Company 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 Company 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. | |
Prior to January 1, 2014, upon complete disposal of a property or classification of a property as Real Estate Held for Sale, the Company includes the operating results and sale of the property in discontinued operations. In addition, the Company reclassifies the prior periods’ operating results of the property to discontinued operations. | |
The Company 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 Company's percentage share of the properties' land, building, liabilities, revenues and expenses. | |
The Company’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 Company 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, 2014 and 2013. | |
Fair Value Measurements | |
As of December 31, 2014 and 2013, the Company had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis. | |
Income Per Unit | |
Income per LLC Unit is calculated based on the weighted average number of LLC Units outstanding during each period presented. Diluted income per LLC Unit considers the effect of any potentially dilutive Unit equivalents, of which the Company had none for each of the years ended December 31, 2014 and 2013. | |
Reportable Segments | |
The Company 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 Company evaluates operating performance on an overall portfolio basis. Therefore, the Company’s properties are classified as one reportable segment. | |
Recently Adopted Accounting Standards | |
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This topic amends the requirements for reporting discontinued operations. The disposal of a component must represent a strategic shift that will have a major effect on the Company’s operations and financial results in order to be reported as discontinued operations, and require certain additional interim and annual disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2014 with early adoption permitted. The Company has early adopted this standard effective January 1, 2014 and has applied the provisions prospectively. As a result, the Company anticipates that properties will not be considered discontinued operations when the properties are sold after January 1, 2014, with the exception of properties that were classified as Real Estate Held for Sale at December 31, 2013. | |
Recently Issued Accounting Pronouncements | |
Management has reviewed recently issued, but not yet effective, accounting pronouncements and does not expect the implementation of these pronouncements to have a significant effect on the Company’s financial statements. | |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Related Party Transactions [Abstract] | ||||||
Related Party Transactions Disclosure [Text Block] | (3) Related Party Transactions – | |||||
The Company owns the percentage interest shown below in the following properties as tenants-in-common with the affiliated entities listed: Sports Authority store (40% – AEI Income & Growth Fund 25 LLC); Advance Auto Parts store (55% – AEI Income & Growth Fund 24 LLC); Applebee’s restaurant in Crawfordsville, Indiana (40% – AEI Income & Growth Fund XXII Limited Partnership); Best Buy store (30% – AEI Income & Growth Fund XXI Limited Partnership and AEI Income & Growth Fund 23 LLC); Dick’s Sporting Goods store in Fredericksburg, Virginia (27% – AEI Income & Growth Fund 23 LLC, AEI Income & Growth Fund 24 LLC and AEI Income & Growth Fund 25 LLC); Tractor Supply Company store (53% – AEI Net Lease Income & Growth Fund XX Limited Partnership); and Fresenius Medical Center (54% – AEI Income & Growth Fund 27 LLC). | ||||||
AEI received the following reimbursements for costs and expenses from the Company for the years ended December 31: | ||||||
2014 | 2013 | |||||
AEI is reimbursed for costs incurred in providing services related to managing the Company’s operations and properties, maintaining the Company’s books, and communicating with the Limited Members. | $ | 150,415 | $ | 140,613 | ||
AEI is reimbursed for all direct expenses it paid on the Company’s behalf to third parties related to Company 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. | $ | 32,962 | $ | 29,137 | ||
AEI is reimbursed for costs incurred in providing services and direct expenses related to the acquisition of properties on behalf of the Company. | $ | 37,042 | $ | 0 | ||
AEI is reimbursed for costs incurred in providing services related to the sale of property. | $ | 107,167 | $ | 0 | ||
The payable to AEI Fund Management, Inc. represents the balance due for the services described in 3a, b, c and d. 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, 2014 | |||||||||
Real Estate [Abstract] | |||||||||
Real Estate Disclosure [Text Block] | (4) Real Estate Investments – | ||||||||
The Company 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 Company 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. The leases provide the tenants with three to four five-year renewal options subject to the same terms and conditions as the primary term. | |||||||||
The Company's properties are commercial, single-tenant buildings. The Sports Authority store was constructed in 1996, renovated in 2001 and acquired in 2006. The Advance Auto Parts store was constructed in 2004 and acquired in 2006. The Applebee’s restaurant in Crawfordsville, Indiana was constructed in 1996 and acquired in 2006. The Starbucks restaurant was constructed and acquired in 2007. The Best Buy store was constructed in 1990, renovated in 1997 and acquired in 2008. The land for the Dick’s Sporting Goods store was acquired in 2007 and construction of the store was completed in 2008. The Tractor Supply Company store was constructed and acquired in 2012. The Fresenius Medical Center was constructed in 2012 and acquired in 2014. There have been no costs capitalized as improvements subsequent to the acquisitions. | |||||||||
The cost of the properties not held for sale and related accumulated depreciation at December 31, 2014 are as follows: | |||||||||
Property | Land | Buildings | Total | Accumulated | |||||
Depreciation | |||||||||
Sports Authority, Wichita, KS | $ | 697,617 | $ | 1,533,136 | $ | 2,230,753 | $ | 533,599 | |
Advance Auto Parts, Middletown, OH | 112,315 | 909,974 | 1,022,289 | 312,425 | |||||
Applebee’s, Crawfordsville, IN | 337,353 | 900,418 | 1,237,771 | 288,136 | |||||
Starbucks, Bluffton, IN | 344,008 | 806,108 | 1,150,116 | 237,800 | |||||
Best Buy, Eau Claire, WI | 474,137 | 1,547,025 | 2,021,162 | 428,010 | |||||
Dick’s Sporting Goods, Fredericksburg, VA | 1,603,559 | 1,523,044 | 3,126,603 | 427,320 | |||||
Tractor Supply, Starkville, MS | 397,500 | 947,775 | 1,345,275 | 108,994 | |||||
Fresenius Medical Center, Chicago, IL | 464,400 | 665,142 | 1,129,542 | 0 | |||||
$ | 4,430,889 | $ | 8,832,622 | $ | 13,263,511 | $ | 2,336,284 | ||
For the years ended December 31, 2014 and 2013, the Company recognized depreciation expense of $392,333 and $421,198, respectively. | |||||||||
On December 30, 2014, the Company purchased a 54% interest in a Fresenius Medical Center in Chicago, Illinois for $1,292,220. The Company allocated $162,678 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles. The Company incurred $37,042 of acquisition expenses related to the purchase that were expensed. The property is leased to Fresenius Medical Care Chatham, LLC, a subsidiary of Fresenius Medical Care Holdings, Inc., under a Lease Agreement with a remaining primary term of 12.3 years (as of the date of purchase) and annual rent of $87,228 for the interest purchased. | |||||||||
On March 17, 2015, the Company purchased a Zales store in Enid, Oklahoma for $1,600,000. The property is leased to Zale Delaware, Inc. under a Lease Agreement with a remaining primary term of 9.6 years and annual rent of $105,600. | |||||||||
The following schedule presents the cost and related accumulated amortization of acquired lease intangibles not held for sale at December 31: | |||||||||
2014 | 2013 | ||||||||
Cost | Accumulated Amortization | Cost | Accumulated Amortization | ||||||
Acquired Intangible Lease Assets | $ | 420,445 | $ | 48,960 | $ | 257,767 | $ | 31,680 | |
(in-place lease intangibles with a weighted average | |||||||||
life of 146 and 157 months, respectively) | |||||||||
Acquired Below-Market Lease Intangibles | $ | 92,542 | $ | 17,578 | $ | 92,542 | $ | 11,374 | |
(weighted average life of 145 and 157 months, respectively) | |||||||||
For the years ended December 31, 2014 and 2013, the value of in-place lease intangibles amortized to expense was $17,280 and the increase to rental income for below-market leases was $6,204 for each year. For lease intangibles not held for sale at December 31, 2014, the estimated amortization expense is $30,470 and the estimated increase to rental income is $6,204 for each of the next five succeeding years. | |||||||||
For properties owned as of December 31, 2014, the minimum future rent payments required by the leases are as follows: | |||||||||
2015 | $ | 1,074,251 | |||||||
2016 | 1,078,268 | ||||||||
2017 | 843,086 | ||||||||
2018 | 645,205 | ||||||||
2019 | 393,575 | ||||||||
Thereafter | 2,495,379 | ||||||||
$ | 6,529,764 | ||||||||
There were no contingent rents recognized in 2014 and 2013. | |||||||||
Equity_Method_Investments
Equity Method Investments | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Policy Text Block [Abstract] | |||||
Equity Method Investments, Policy [Policy Text Block] | (5) Equity Method Investments – | ||||
On August 29, 2014, to facilitate the sale of its Applebee’s restaurant in Indianapolis, Indiana, the Company contributed the property via a limited liability company to AEI Net Lease Portfolio DST (“ANLP”), a Delaware statutory trust (“DST”), in exchange for 28.3% of the Class B ownership interests in ANLP. A second property owned by an affiliate of the Company, along with a third property owned jointly by two other affiliated entities, were also contributed to ANLP in exchange for 71.7% of the Class B ownership interests in ANLP. In addition, cash was contributed for working capital. A DST is a recognized mechanism for selling property to investors who are looking for replacement real estate to complete like-kind exchanges under Section 1031 of the Internal Revenue Code. As investors purchase Class A ownership interests in ANLP, the proceeds received will be used to redeem, on a one-for-one basis, the Class B ownership interests of the Company and affiliated entities. From August 29, 2014 to October 30, 2014, ANLP sold 100% of its Class A ownership interests to investors and redeemed 100% of the Class B ownership interests from the Company and affiliated entities. | |||||
The investment in ANLP is recorded using the equity method of accounting in the accompanying financial statements. Under the equity method, the investment in ANLP is stated at cost and adjusted for the Company’s share of net income or losses and reduced by proceeds received from the sale of the Class B ownership interests of ANLP as well as distributions from net rental income. As of December 31, 2014, the investment balance consists of the following: | |||||
Real Estate Contributed | $ | 2,371,502 | |||
Cash Contributed | 42,273 | ||||
Net Income – Rental Activity | 19,180 | ||||
Net Income – Gain on Sale of Real Estate | 1,287,642 | ||||
Distributions from Net Rental Income | -19,180 | ||||
Proceeds from Sale of Class B Interests | -3,701,417 | ||||
Equity Method Investments | $ | 0 | |||
On January 22, 2015, to facilitate the sale of its 53% interest in the Tractor Supply Company store in Starkville, Mississippi, the Company contributed the property via a limited liability company to AEI Net Lease Portfolio II DST (“ANLP II”) in exchange for 10.18% of the Class B ownership interests in ANLP II. The remaining interest in the property, owned by an affiliated entity, along with three other properties owned by two other affiliated entities, were also contributed to ANLP II in exchange for 89.82% of the Class B ownership interests in ANLP II. In addition, cash was contributed for working capital. If the DST offering is completed, the Company expects to receive net proceeds of approximately $1,833,000. | |||||
Major_Tenants
Major Tenants | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||
Segment Reporting, Disclosure of Major Customers | (6) 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 Company's total rental income for the years ended December 31: | |||||||
Tenants | 2014 | 2013 | |||||
Apple American Group | $ | 251,931 | $ | 332,768 | |||
Dick’s Sporting Goods, Inc. | 231,824 | 219,445 | |||||
TSA Stores, Inc. | 225,131 | 225,131 | |||||
Best Buy Stores, L.P. | 149,333 | 148,970 | |||||
Tractor Supply Company | 121,746 | N/A | |||||
Aggregate rental income of major tenants | $ | 979,965 | $ | 926,314 | |||
Aggregate rental income of major tenants | 86% | 77% | |||||
as a percentage of total rental income | |||||||
Members_Capital
Members' Capital | 12 Months Ended |
Dec. 31, 2014 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital Notes Disclosure [Text Block] | (7) Members’ Capital – |
For the years ended December 31, 2014 and 2013, the Company declared distributions of $1,222,108 and $944,327, respectively. The Limited Members received distributions of $1,191,000 and $915,997 and the Managing Members received distributions of $31,108 and $28,330 for the years, respectively. The Limited Members' distributions represented $0.67 and $0.51 per LLC Unit outstanding using 1,776,144 and 1,784,275 weighted average Units in 2014 and 2013, respectively. The distributions represented $0.67 and $0.28 per Unit of Net Income and $0 and $0.23 per Unit of return of contributed capital in 2014 and 2013, respectively. | |
As part of the distributions discussed above, the Company distributed net sale proceeds of $277,778 in 2014. The Limited Members received distributions of $275,000 and the Managing Members received distributions of $2,778 for the year. The Limited Members’ distributions represented $0.16 per Unit. | |
The Company may repurchase Units from Limited Members who have tendered their Units to the Company. Such Units may be acquired at a discount. The Company will not be obligated to purchase in any year more than 2% of the total number of Units outstanding on January 1 of such year. In no event shall the Company be obligated to purchase Units if, in the sole discretion of the Managing Members, such purchase would impair the capital or operation of the Company. | |
During 2014, the Company repurchased a total of 9,128.5 Units for $58,477 from six Limited Members in accordance with the Operating Agreement. During 2013, the Company repurchased a total of 12,200.0 Units for $85,500 from five Limited Members. The Company acquired these Units using Net Cash Flow from operations. The repurchases increase the remaining Limited Members’ ownership interest in the Company. As a result of these repurchases and pursuant to the Operating Agreement, the Managing Members received distributions of $1,808 and $2,645 in 2014 and 2013, respectively. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Income Tax Disclosure [Abstract] | |||||
Income Tax Disclosure [Text Block] | (8) 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: | |||||
2014 | 2013 | ||||
Net Income for Financial Reporting Purposes | $ | 1,821,630 | $ | 599,935 | |
Depreciation for Tax Purposes Under Depreciation | 130,474 | 138,153 | |||
and Amortization for Financial Reporting Purposes | |||||
Income Accrued for Tax Purposes Over | 7,269 | 0 | |||
Income for Financial Reporting Purposes | |||||
Acquisition Costs Expensed for Financial Reporting | 37,042 | 0 | |||
Purposes, Capitalized for Tax Purposes | |||||
Gain on Sale of Real Estate for Tax Purposes | -251,614 | 0 | |||
Under Gain for Financial Reporting Purposes | |||||
Taxable Income to Members | $ | 1,744,801 | $ | 738,088 | |
The following is a reconciliation of Members’ Equity for financial reporting purposes to Members’ Equity reported for federal income tax purposes for the years ended December 31: | |||||
2014 | 2013 | ||||
Members’ Equity for Financial Reporting Purposes | $ | 13,306,205 | $ | 12,766,968 | |
Adjusted Tax Basis of Investments in Real Estate | 757,830 | 841,928 | |||
Over Net Investments in Real Estate | |||||
for Financial Reporting Purposes | |||||
Income Accrued for Tax Purposes Over | 7,269 | 0 | |||
Income for Financial Reporting Purposes | |||||
Syndication Costs Treated as Reduction | 2,691,997 | 2,691,997 | |||
of Capital For Financial Reporting Purposes | |||||
Members’ Equity for Tax Reporting Purposes | $ | 16,763,301 | $ | 16,300,893 | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Distribution Policy, Members or Limited Partners, Description | During operations, any Net Cash Flow, as defined, which the Managing Members determine to distribute will be distributed 97% to the Limited Members and 3% to the Managing Members. Distributions to Limited Members will be made pro rata by Units.Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the Managing Members determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Members and 1% to the Managing Members until the Limited Members receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 6.5% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow; (ii) any remaining balance will be distributed 90% to the Limited Members and 10% to the Managing Members. Distributions to the Limited Members will be made pro rata by Units. |
Key Provisions of Operating or Partnership Agreement, Description | For tax purposes, profits from operations, other than profits attributable to the sale, exchange, financing, refinancing or other disposition of property, will be allocated 97% to the Limited Members and 3% to the Managing Members. Net losses from operations will be allocated 99% to the Limited Members and 1% to the Managing Members.For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Operating Agreement as follows: (i) first, to those Members with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Members and 1% to the Managing Members until the aggregate balance in the Limited Members' capital accounts equals the sum of the Limited Members' Adjusted Capital Contributions plus an amount equal to 6.5% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously allocated; (iii) third, the balance of any remaining gain will then be allocated 90% to the Limited Members and 10% to the Managing Members. Losses will be allocated 99% to the Limited Members and 1% to the Managing Members.The Managing Members are not required to currently fund a deficit capital balance. Upon liquidation of the Company or withdrawal by a Managing Member, the Managing Members will contribute to the Company an amount equal to the lesser of the deficit balances in their capital accounts or 1.01% of the total capital contributions of the Limited Members over the amount previously contributed by the Managing Members. |
Basis of Accounting, Policy [Policy Text Block] | Financial Statement Presentation |
The accounts of the Company 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 Company 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 Company'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 Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral. | |
Receivables are recorded at their estimated net realizable value. The Company 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 Company 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 Company’s credit terms. Receivables considered uncollectible are written off. | |
Income Tax, Policy [Policy Text Block] | Income Taxes |
The income or loss of the Company for federal income tax reporting purposes is includable in the income tax returns of the Members. In general, no recognition has been given to income taxes in the accompanying financial statements. | |
The tax return and the amount of distributable Company income or loss are subject to examination by federal and state taxing authorities. If such an examination results in changes to distributable Company income or loss, the taxable income of the members would be adjusted accordingly. Primarily due to its tax status as a partnership, the Company has no significant tax uncertainties that require recognition or disclosure. The Company is no longer subject to U.S. federal income tax examinations for tax years before 2011, and with few exceptions, is no longer subject to state tax examinations for tax years before 2011. | |
Revenue Recognition Leases [Policy Text Block] | Revenue Recognition |
The Company'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 Company 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 Company 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 terms of the respective leases. Below market leases 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 Company tests real estate for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Company 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 Company 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 Company 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 Company 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. | |
Prior to January 1, 2014, upon complete disposal of a property or classification of a property as Real Estate Held for Sale, the Company includes the operating results and sale of the property in discontinued operations. In addition, the Company reclassifies the prior periods’ operating results of the property to discontinued operations. | |
The Company 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 Company's percentage share of the properties' land, building, liabilities, revenues and expenses. | |
The Company’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 Company 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, 2014 and 2013. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements |
As of December 31, 2014 and 2013, the Company 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 LLC Unit is calculated based on the weighted average number of LLC Units outstanding during each period presented. Diluted income per LLC Unit considers the effect of any potentially dilutive Unit equivalents, of which the Company had none for each of the years ended December 31, 2014 and 2013. | |
Segment Reporting, Policy [Policy Text Block] | Reportable Segments |
The Company 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 Company evaluates operating performance on an overall portfolio basis. Therefore, the Company’s properties are classified as one reportable segment. | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements |
Management has reviewed recently issued, but not yet effective, accounting pronouncements and does not expect the implementation of these pronouncements to have a significant effect on the Company’s financial statements. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Related Party Transactions [Abstract] | ||||||
Schedule of Related Party Transactions [Table Text Block] | Related Party Transactions | |||||
2014 | 2013 | |||||
AEI is reimbursed for costs incurred in providing services related to managing the Company’s operations and properties, maintaining the Company’s books, and communicating with the Limited Members. | $ | 150,415 | $ | 140,613 | ||
AEI is reimbursed for all direct expenses it paid on the Company’s behalf to third parties related to Company 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. | $ | 32,962 | $ | 29,137 | ||
AEI is reimbursed for costs incurred in providing services and direct expenses related to the acquisition of properties on behalf of the Company. | $ | 37,042 | $ | 0 | ||
AEI is reimbursed for costs incurred in providing services related to the sale of property. | $ | 107,167 | $ | 0 | ||
Real_Estate_Investments_Tables
Real Estate Investments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Real Estate [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | Properties not held for sale | ||||||||
Property | Land | Buildings | Total | Accumulated | |||||
Depreciation | |||||||||
Sports Authority, Wichita, KS | $ | 697,617 | $ | 1,533,136 | $ | 2,230,753 | $ | 533,599 | |
Advance Auto Parts, Middletown, OH | 112,315 | 909,974 | 1,022,289 | 312,425 | |||||
Applebee’s, Crawfordsville, IN | 337,353 | 900,418 | 1,237,771 | 288,136 | |||||
Starbucks, Bluffton, IN | 344,008 | 806,108 | 1,150,116 | 237,800 | |||||
Best Buy, Eau Claire, WI | 474,137 | 1,547,025 | 2,021,162 | 428,010 | |||||
Dick’s Sporting Goods, Fredericksburg, VA | 1,603,559 | 1,523,044 | 3,126,603 | 427,320 | |||||
Tractor Supply, Starkville, MS | 397,500 | 947,775 | 1,345,275 | 108,994 | |||||
Fresenius Medical Center, Chicago, IL | 464,400 | 665,142 | 1,129,542 | 0 | |||||
$ | 4,430,889 | $ | 8,832,622 | $ | 13,263,511 | $ | 2,336,284 | ||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Acquired lease intangibles not held for sale | ||||||||
2014 | 2013 | ||||||||
Cost | Accumulated Amortization | Cost | Accumulated Amortization | ||||||
Acquired Intangible Lease Assets | $ | 420,445 | $ | 48,960 | $ | 257,767 | $ | 31,680 | |
(in-place lease intangibles with a weighted average | |||||||||
life of 146 and 157 months, respectively) | |||||||||
Acquired Below-Market Lease Intangibles | $ | 92,542 | $ | 17,578 | $ | 92,542 | $ | 11,374 | |
(weighted average life of 145 and 157 months, respectively) | |||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum future rent | ||||||||
2015 | $ | 1,074,251 | |||||||
2016 | 1,078,268 | ||||||||
2017 | 843,086 | ||||||||
2018 | 645,205 | ||||||||
2019 | 393,575 | ||||||||
Thereafter | 2,495,379 | ||||||||
$ | 6,529,764 | ||||||||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) (AEI Net Lease Portfolio DST) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
AEI Net Lease Portfolio DST | |||||
Equity Method Investments (Tables) [Line Items] | |||||
Equity Method Investments [Table Text Block] | Equity Method Investments | ||||
Real Estate Contributed | $ | 2,371,502 | |||
Cash Contributed | 42,273 | ||||
Net Income – Rental Activity | 19,180 | ||||
Net Income – Gain on Sale of Real Estate | 1,287,642 | ||||
Distributions from Net Rental Income | -19,180 | ||||
Proceeds from Sale of Class B Interests | -3,701,417 | ||||
Equity Method Investments | $ | 0 | |||
Major_Tenants_Tables
Major Tenants (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Major Tenants | ||||||
Tenants | 2014 | 2013 | |||||
Apple American Group | $ | 251,931 | $ | 332,768 | |||
Dick’s Sporting Goods, Inc. | 231,824 | 219,445 | |||||
TSA Stores, Inc. | 225,131 | 225,131 | |||||
Best Buy Stores, L.P. | 149,333 | 148,970 | |||||
Tractor Supply Company | 121,746 | N/A | |||||
Aggregate rental income of major tenants | $ | 979,965 | $ | 926,314 | |||
Aggregate rental income of major tenants | 86% | 77% | |||||
as a percentage of total rental income | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Income Tax Disclosure [Abstract] | |||||
Schedule Of GAAP To Federal Taxable Income | Reconciliation of net income for financial reporting | ||||
2014 | 2013 | ||||
Net Income for Financial Reporting Purposes | $ | 1,821,630 | $ | 599,935 | |
Depreciation for Tax Purposes Under Depreciation | 130,474 | 138,153 | |||
and Amortization for Financial Reporting Purposes | |||||
Income Accrued for Tax Purposes Over | 7,269 | 0 | |||
Income for Financial Reporting Purposes | |||||
Acquisition Costs Expensed for Financial Reporting | 37,042 | 0 | |||
Purposes, Capitalized for Tax Purposes | |||||
Gain on Sale of Real Estate for Tax Purposes | -251,614 | 0 | |||
Under Gain for Financial Reporting Purposes | |||||
Taxable Income to Members | $ | 1,744,801 | $ | 738,088 | |
Schedule Of GAAP To Federal Tax Basis | Reconciliation of Members’ Equity for financial reporting | ||||
2014 | 2013 | ||||
Members’ Equity for Financial Reporting Purposes | $ | 13,306,205 | $ | 12,766,968 | |
Adjusted Tax Basis of Investments in Real Estate | 757,830 | 841,928 | |||
Over Net Investments in Real Estate | |||||
for Financial Reporting Purposes | |||||
Income Accrued for Tax Purposes Over | 7,269 | 0 | |||
Income for Financial Reporting Purposes | |||||
Syndication Costs Treated as Reduction | 2,691,997 | 2,691,997 | |||
of Capital For Financial Reporting Purposes | |||||
Members’ Equity for Tax Reporting Purposes | $ | 16,763,301 | $ | 16,300,893 | |
Organization_Details
Organization (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 19, 2007 | Mar. 15, 2005 |
Limited Member [Member] | |||||
Organization (Details) [Line Items] | |||||
Capital Units, Value | $10 | ||||
Limited Partners' Capital Account, Units Outstanding (in Shares) | 1,771,596.50 | 1,780,725 | 1,792,925 | 1,832,736 | 150,000 |
Limited Partners' Contributed Capital | 18,327,360 | 1,500,000 | |||
Managing Member [Member] | |||||
Organization (Details) [Line Items] | |||||
General Partners' Contributed Capital | $1,000 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted Accounting Standards |
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This topic amends the requirements for reporting discontinued operations. The disposal of a component must represent a strategic shift that will have a major effect on the Company’s operations and financial results in order to be reported as discontinued operations, and require certain additional interim and annual disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2014 with early adoption permitted. The Company has early adopted this standard effective January 1, 2014 and has applied the provisions prospectively. As a result, the Company anticipates that properties will not be considered discontinued operations when the properties are sold after January 1, 2014, with the exception of properties that were classified as Real Estate Held for Sale at December 31, 2013 | |
Building and Building Improvements [Member] | |
Summary of Significant Accounting Policies (Details) [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Related_Party_Transactions_Det
Related Party Transactions (Details) - Related Party Transactions (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ||
AEI is reimbursed for costs incurred in providing services related to managing the Companybs operations and properties, maintaining the Companybs books, and communicating with the Limited Members. | $150,415 | $140,613 |
AEI is reimbursed for all direct expenses it paid on the Companybs behalf to third parties related to Company 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. | 32,962 | 29,137 |
AEI is reimbursed for costs incurred in providing services and direct expenses related to the acquisition of properties on behalf of the Company. | 37,042 | 0 |
AEI is reimbursed for costs incurred in providing services related to the sale of property. | $107,167 | $0 |
Real_Estate_Investments_Detail
Real Estate Investments (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 30, 2014 | Mar. 17, 2015 | |
Real Estate Investments (Details) [Line Items] | ||||
Depreciation, Nonproduction | $392,333 | $421,198 | ||
Fresenius Medical Center Chicago IL | ||||
Real Estate Investments (Details) [Line Items] | ||||
Business Acquisition, Effective Date of Acquisition | 30-Dec-14 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 54.00% | |||
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | 1,292,220 | |||
Finite-Lived Intangible Asset, Acquired-in-Place Leases | 162,678 | |||
Business Acquisition, Transaction Costs | 37,042 | |||
Average Lease Term | 12.3 years | |||
Real Estate Revenue, Net | 87,228 | |||
Zales Enid OK | ||||
Real Estate Investments (Details) [Line Items] | ||||
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | 1,600,000 | |||
Average Lease Term | 9.6 years | |||
Real Estate Revenue, Net | 105,600 | |||
Acquisitions and Disposals, Date of Transaction for Acquisition or Disposal | 17-Mar-15 | |||
Leases, Acquired-in-Place [Member] | ||||
Real Estate Investments (Details) [Line Items] | ||||
Amortization of Intangible Assets | 17,280 | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 30,470 | |||
Off Market Unfavorable Lease Member | ||||
Real Estate Investments (Details) [Line Items] | ||||
Amortization of above and below Market Leases | 6,204 | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $6,204 |
Real_Estate_Investments_Detail1
Real Estate Investments (Details) - Real Estate Held for Investment (USD $) | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | |
Land | $4,430,889 |
Buildings | 8,832,622 |
Total | 13,263,511 |
Accumulated Depreciation | 2,336,284 |
Sports Authority Wichita KS | |
Property, Plant and Equipment [Line Items] | |
Land | 697,617 |
Buildings | 1,533,136 |
Total | 2,230,753 |
Accumulated Depreciation | 533,599 |
Advance Auto Parts Middletown OH | |
Property, Plant and Equipment [Line Items] | |
Land | 112,315 |
Buildings | 909,974 |
Total | 1,022,289 |
Accumulated Depreciation | 312,425 |
Applebees Crawfordsville IN | |
Property, Plant and Equipment [Line Items] | |
Land | 337,353 |
Buildings | 900,418 |
Total | 1,237,771 |
Accumulated Depreciation | 288,136 |
Starbucks Bluffton IN | |
Property, Plant and Equipment [Line Items] | |
Land | 344,008 |
Buildings | 806,108 |
Total | 1,150,116 |
Accumulated Depreciation | 237,800 |
Best Buy Eau Claire WI | |
Property, Plant and Equipment [Line Items] | |
Land | 474,137 |
Buildings | 1,547,025 |
Total | 2,021,162 |
Accumulated Depreciation | 428,010 |
Dicks Sporting Goods Fredericksburg VA | |
Property, Plant and Equipment [Line Items] | |
Land | 1,603,559 |
Buildings | 1,523,044 |
Total | 3,126,603 |
Accumulated Depreciation | 427,320 |
Tractor Supply Starkville MS | |
Property, Plant and Equipment [Line Items] | |
Land | 397,500 |
Buildings | 947,775 |
Total | 1,345,275 |
Accumulated Depreciation | 108,994 |
Fresenius Medical Center Chicago IL | |
Property, Plant and Equipment [Line Items] | |
Land | 464,400 |
Buildings | 665,142 |
Total | 1,129,542 |
Accumulated Depreciation | $0 |
Real_Estate_Investments_Detail2
Real Estate Investments (Details) - Acquired Intangibles (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Intangible Lease Assets (in-place lease intangibles with a weighted average life of 146 and 157 months, respectively) | $420,445 | $257,767 |
Lease Intangibles Accumulated Amortization | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Intangible Lease Assets (in-place lease intangibles with a weighted average life of 146 and 157 months, respectively) | 48,960 | 31,680 |
Acquired Below-Market Lease Intangibles (weighted average life of 145 and 157 months, respectively) | 17,578 | 11,374 |
Leases, Acquired-in-Place [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Intangible Lease Assets (in-place lease intangibles with a weighted average life of 146 and 157 months, respectively) | 420,445 | 257,767 |
Above Market Leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Below-Market Lease Intangibles (weighted average life of 145 and 157 months, respectively) | $92,542 | $92,542 |
Real_Estate_Investments_Detail3
Real Estate Investments (Details) - Acquired Intangibles (Parentheticals) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Leases, Acquired-in-Place [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average life | 146 months | 157 months |
Above Market Leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average life | 145 months | 157 months |
Real_Estate_Investments_Detail4
Real Estate Investments (Details) - Future Minimum Rent (USD $) | Dec. 31, 2014 |
Future Minimum Rent [Abstract] | |
2015 | $1,074,251 |
2016 | 1,078,268 |
2017 | 843,086 |
2018 | 645,205 |
2019 | 393,575 |
Thereafter | 2,495,379 |
$6,529,764 |
Equity_Method_Investments_Deta
Equity Method Investments (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Aug. 29, 2014 | Dec. 31, 2015 | Jan. 22, 2015 | |
Equity Method Investments (Details) [Line Items] | ||||
Proceeds from Sale of Equity Method Investments | ($3,701,417) | |||
Applebees Indianapolis IN | AEI Net Lease Portfolio DST | ||||
Equity Method Investments (Details) [Line Items] | ||||
Acquisitions and Disposals, Date of Transaction for Acquisition or Disposal | 29-Aug-14 | |||
Tractor Supply Starkville MS | AEI Net Lease Portfolio II DST | ||||
Equity Method Investments (Details) [Line Items] | ||||
Acquisitions and Disposals, Date of Transaction for Acquisition or Disposal | 22-Jan-15 | |||
Proceeds from Sale of Equity Method Investments | $1,833,000 | |||
AEI Net Lease Portfolio DST | ||||
Equity Method Investments (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 28.30% | |||
AEI Net Lease Portfolio II DST | ||||
Equity Method Investments (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 10.18% |
Equity_Method_Investments_Deta1
Equity Method Investments (Details) - Equity Method Investments (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investments [Abstract] | ||
Real Estate Contributed | $2,371,502 | $0 |
Cash Contributed | 42,273 | 0 |
Net Income b Rental Activity | 19,180 | |
Net Income b Gain on Sale of Real Estate | 1,287,642 | |
Distributions from Net Rental Income | -19,180 | |
Proceeds from Sale of Class B Interests | -3,701,417 | |
Equity Method Investments | $0 |
Major_Tenants_Details_Major_Te
Major Tenants (Details) - Major Tenants (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | ||
Major Tenants | $979,965 | $926,314 |
Aggregate rental income of major tenants as a percentage of total rental income | 86.00% | 77.00% |
Apple American Group | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | 251,931 | 332,768 |
Dicks Sporting Goods Inc | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | 231,824 | 219,445 |
TSA Stores Inc | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | 225,131 | 225,131 |
Best Buy Stores LP | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | 149,333 | 148,970 |
Tractor Supply Company | ||
Revenue, Major Customer [Line Items] | ||
Major Tenants | $121,746 |
Members_Capital_Details
Members' Capital (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Members' Capital (Details) [Line Items] | ||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | $1,222,108 | $944,327 |
SaleProceedsDistributionMadeToMemberOrLimitedPartner | 277,778 | |
Partners' Capital Account, Redemptions | 60,285 | 88,145 |
Limited Member [Member] | ||
Members' Capital (Details) [Line Items] | ||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | 1,191,000 | 915,997 |
Distributions Per Limited Partnership Unit Outstanding, Basic (in Dollars per share) | $0.67 | $0.51 |
Weighted Average Limited Partnership Units Outstanding, Basic (in Shares) | 1,776,144 | 1,784,275 |
DistributionsPerUnitOfNetIncome (in Dollars per Item) | 0.67 | 0.28 |
DistributionsPerUnitOfReturnOfCapital (in Dollars per Item) | 0 | 0.23 |
SaleProceedsDistributionMadeToMemberOrLimitedPartner | 275,000 | |
SaleProceedsDistributionMadetomLimitedMemberPerUnit | 0.16 | |
Partners' Capital Account, Units, Redeemed (in Shares) | 9,128.50 | 12,200 |
Partners' Capital Account, Redemptions | 58,477 | 85,500 |
Managing Member [Member] | ||
Members' Capital (Details) [Line Items] | ||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | 31,108 | 28,330 |
SaleProceedsDistributionMadeToMemberOrLimitedPartner | 2,778 | |
Partners' Capital Account, Redemptions | $1,808 | $2,645 |
Income_Taxes_Details_Federal_T
Income Taxes (Details) - Federal Taxable Income Reconciliation (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Federal Taxable Income Reconciliation [Abstract] | ||
Net Income for Financial Reporting Purposes | $1,821,630 | $599,935 |
Depreciation for Tax Purposes Under Depreciation and Amortization for Financial Reporting Purposes | 130,474 | 138,153 |
Income Accrued for Tax Purposes Over Income for Financial Reporting Purposes | 7,269 | 0 |
Acquisition Costs Expensed for Financial Reporting Purposes, Capitalized for Tax Purposes | 37,042 | 0 |
Gain on Sale of Real Estate for Tax Purposes Under Gain for Financial Reporting Purposes | -251,614 | 0 |
Taxable Income to Members | $1,744,801 | $738,088 |
Income_Taxes_Details_Federal_T1
Income Taxes (Details) - Federal Tax Partners' Capital (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Federal Tax Partners' Capital [Abstract] | ||
Membersb Equity for Financial Reporting Purposes | $13,306,205 | $12,766,968 |
Adjusted Tax Basis of Investments in Real Estate Over Net Investments in Real Estate for Financial Reporting Purposes | 757,830 | 841,928 |
Income Accrued for Tax Purposes Over Income for Financial Reporting Purposes | 7,269 | 0 |
Syndication Costs Treated as Reduction of Capital For Financial Reporting Purposes | 2,691,997 | 2,691,997 |
Membersb Equity for Tax Reporting Purposes | $16,763,301 | $16,300,893 |