LEASES - LESSORS |
3 Months Ended |
|---|---|
Mar. 31, 2017 | |
| LEASES - LESSORS: | |
| LEASES - LESSORS | NOTE 7. LEASES – LESSORS
The Company leases space to a Save-A-Lot grocery store at our Indianapolis location. Save-A-Lot corporate assumed the lease in March 2014 for seven years with three five-year options. Monthly rent charged to the tenant is $13,373 per month. Total rental income relating to this lease was $40,119 and $40,119 for the three months ended March 31, 2017 and 2016, respectively.
The initial lease term ends September 30, 2021. Save-A-Lot reserves the right to exercise three five-year options, which would extend the maturity date to September 30, 2036. The Company intends to sell the leased property during the year ended December 31, 2017. This will result in the loss of a portion of projected rental income in 2017 once the sale is completed, as well as all other years under the lease agreement in effect. Proceeds from the sale of the property will be used to pay down the mortgage principal on the retained real estate property which includes our theater building. |