AEI NET LEASE INCOME & GROWTH FUND XIX LIMITED PARTNERSHIP
CIK:0000868740|SEC Filings
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Discontinued Operations
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2014
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| Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] |
(6) Discontinued Operations –
During 2012, the Partnership decided to sell its 28% interest in the Champps Americana restaurant in Utica, Michigan and classified it as Real Estate Held for Sale. In February 2013, Champps Operating Corporation (“Champps’), the tenant of the property, approached the Partnership with a request to adjust the rent on the property to a market rental rate based on the restaurant’s performance and the current conditions in the market. In April 2013, after reviewing financial information for the restaurant and the tenant, and analyzing the local real estate market for the property, the Partnership and the property’s other co-owners entered into an agreement to reduce the annual rent for the property by 63% to $90,880. The Partnership’s share of this rent was $25,446. On December 15, 2013, Champps filed for Chapter 11 bankruptcy reorganization. In February 2014, Champps closed the restaurant, filed a motion with the bankruptcy court to reject the
lease and returned possession of the property to the owners. The owners listed the property for sale or lease with a real estate broker in the Utica area. While the property was vacant, the Partnership was responsible for its 28% share of real estate taxes and other costs associated with maintaining the property.
Based on its long-lived asset valuation analysis, the Partnership determined the Champps property was impaired. As a result, in the fourth quarter of 2013, a charge to discontinued operations for real estate impairment of $55,000 was recognized, which was the difference between the carrying value at December 31, 2013 of $467,000 and the estimated fair value of $412,000. The charge was recorded against the cost of the land and building. In June 2014, the Partnership and the other co-owners of the Champps property entered into an agreement to sell the property to an unrelated third party. On August 25, 2014, the sale closed with the Partnership receiving net proceeds of $448,249, which resulted in a net gain of $36,249.
During the first nine months of 2014 and 2013, the Partnership distributed net sale proceeds of $108,631 and $140,190, respectively. The Limited Partners received distributions of $107,545 and $138,788 and the General Partners received distributions of $1,086 and $1,402 for the periods, respectively. The Limited Partners’ distributions represented $5.33 and $6.88 per Unit for the periods, respectively.
The financial results for this property are reflected as Discontinued Operations in the accompanying financial statements. The following are the results of discontinued operations:
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Discontinued Operations (Details) - Cash Flows from Discontinued Operations (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2014
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Sep. 30, 2013
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Sep. 30, 2014
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Sep. 30, 2013
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| Cash Flows from Discontinued Operations: | ||||
| Operating Activities | $ (4,937) | $ 5,683 | $ (9,879) | $ 39,341 |
| Investing Activities | $ 448,249 | $ 0 | $ 448,249 | $ 0 |
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Balance Sheet (USD $)
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Sep. 30, 2014
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Dec. 31, 2013
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| Current Assets: | ||
| Cash | $ 815,644 | $ 494,982 |
| Real Estate Held for Investment: | ||
| Land | 15,314 | 501,902 |
| Buildings and Equipment | 13,104 | 1,126,519 |
| Accumulated Depreciation | 9,302 | 301,248 |
| Real Estate Held for Investment, Net | 19,116 | 1,327,173 |
| Real Estate Held for Sale | 1,131,000 | 412,000 |
| Total Real Estate | 1,150,116 | 1,739,173 |
| Total Assets | 1,965,760 | 2,234,155 |
| Current Liabilities: | ||
| Payable to AEI Fund Management, Inc. | 20,703 | 10,785 |
| Distributions Payable | 37,072 | 62,933 |
| Unearned Rent | 9,268 | 0 |
| Total Current Liabilities | 67,043 | 73,718 |
| Partners’ Capital: | ||
| General Partners | 322 | 807 |
| Limited Partners – 30,000 Units authorized; 20,166 Units issued and outstanding | 1,898,395 | 2,159,630 |
| Total Partners' Capital | 1,898,717 | 2,160,437 |
| Total Liabilities and Partners' Capital | 1,965,760 | 2,234,155 |
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Limited Partner [Member]
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| Partners’ Capital: | ||
| Total Partners' Capital | $ 1,898,395 | $ 2,159,630 |