INVESTMENT IN REAL PROPERTY FINANCED BY DEBT	3 Months Ended
Dec. 31, 2011
Investment In Real Property Financed By Debt
INVESTMENT IN REAL PROPERTY FINANCED BY DEBT	(4) INVESTMENT IN REAL PROPERTY FINANCED BY DEBT: *Kendall, Florida* During the first quarter of our fiscal year 2012 through our new wholly owned subsidiary, Flanigan’s Calusa Center, LLC, a Florida limited liability company, we closed on the purchase of a two building shopping center in Miami, Florida, which consists of one building which is leased to twelve unaffiliated third parties and a second stand-alone building where our limited partnership owned restaurant located at 12790 SW 88^th Street, Miami, Florida, (Store #70), operates. We paid $6,140,000 for this property, $4,500,000 of which we borrowed from a non-affiliated third party lender, pursuant to a first mortgage, (the “$4.5M Mortgage Loan”), which we guaranteed. The $4.5M Mortgage Loan is in the original principal amount of $4,500,000 and bears interest at a variable rate equal to the British Bankers Association (BBA) LIBOR - 1 Month plus 2.25%. We entered into an interest rate swap agreement to hedge the interest rate risk as to $3,750,000 of the principal amount, (the “$3.75M Hedged Amount”), which fixed the interest rate as to that portion of the principal amount of the $4.5M Mortgage Loan at 4.51% per annum throughout the term of the loan. The $4.5M Mortgage Loan is amortized over twenty (20) years, with our current monthly payment of principal and interest totaling $23,700 as to the $3.75M Hedged Amount, and our current monthly payment of principal and interest as to that portion of the principal amount not fixed by the interest rate swap agreement, ($750,000), payable at a variable interest rate, (2.5202%% as of December 31, 2011). The entire principal balance and all accrued but unpaid interest is due on December 1, 2019. During the first quarter of our fiscal year 2012, we borrowed $1,600,000 from a non affiliated third party lender, (the “$1.6M Term Loan”), and used the proceeds of such loan to capitalize our investment in Flanigan’s Calusa Center, LLC, which simultaneously used the funds to purchase the real property and buildings where our limited partnership restaurant located at 12790 SW 88^th Street, Miami, Florida (Store #70) operates, while permitting us to retain our working capital and cash reserves. The $1.6M Term Loan is in the principal amount of $1,600,000 and bears interest at a variable interest rate equal to the BBA LIBOR - 1 Month plus 2.25%. We entered into an interest rate swap agreement to hedge the interest rate risk, which fixed the interest rate on the $1.6M Term Loan at 3.43% per annum throughout the term of the loan. The $1.6M Term Loan is payable interest only for three (3) months and then is fully amortized over forty five (45) months, with our monthly payment of principal and interest, totaling $38,000. We granted our lender a security interest in substantially all of our assets as collateral to secure our repayment obligations under our term loan.

INVESTMENT IN REAL PROPERTY FINANCED BY DEBT

3 Months Ended

Dec. 31, 2011

Investment In Real Property Financed By Debt

INVESTMENT IN REAL PROPERTY FINANCED BY DEBT

(4) INVESTMENT IN REAL PROPERTY FINANCED BY DEBT:

Kendall, Florida

During the first quarter of our fiscal year 2012 through our new wholly owned subsidiary, Flanigan’s Calusa Center, LLC, a Florida limited liability company, we closed on the purchase of a two building shopping center in Miami, Florida, which consists of one building which is leased to twelve unaffiliated third parties and a second stand-alone building where our limited partnership owned restaurant located at 12790 SW 88^th Street, Miami, Florida, (Store #70), operates. We paid $6,140,000 for this property, $4,500,000 of which we borrowed from a non-affiliated third party lender, pursuant to a first mortgage, (the “$4.5M Mortgage Loan”), which we guaranteed. The $4.5M Mortgage Loan is in the original principal amount of $4,500,000 and bears interest at a variable rate equal to the British Bankers Association (BBA) LIBOR - 1 Month plus 2.25%. We entered into an interest rate swap agreement to hedge the interest rate risk as to $3,750,000 of the principal amount, (the “$3.75M Hedged Amount”), which fixed the interest rate as to that portion of the principal amount of the $4.5M Mortgage Loan at 4.51% per annum throughout the term of the loan. The $4.5M Mortgage Loan is amortized over twenty (20) years, with our current monthly payment of principal and interest totaling $23,700 as to the $3.75M Hedged Amount, and our current monthly payment of principal and interest as to that portion of the principal amount not fixed by the interest rate swap agreement, ($750,000), payable at a variable interest rate, (2.5202%% as of December 31, 2011). The entire principal balance and all accrued but unpaid interest is due on December 1, 2019.

During the first quarter of our fiscal year 2012, we borrowed $1,600,000 from a non affiliated third party lender, (the “$1.6M Term Loan”), and used the proceeds of such loan to capitalize our investment in Flanigan’s Calusa Center, LLC, which simultaneously used the funds to purchase the real property and buildings where our limited partnership restaurant located at 12790 SW 88^th Street, Miami, Florida (Store #70) operates, while permitting us to retain our working capital and cash reserves. The $1.6M Term Loan is in the principal amount of $1,600,000 and bears interest at a variable interest rate equal to the BBA LIBOR - 1 Month plus 2.25%. We entered into an interest rate swap agreement to hedge the interest rate risk, which fixed the interest rate on the $1.6M Term Loan at 3.43% per annum throughout the term of the loan. The $1.6M Term Loan is payable interest only for three (3) months and then is fully amortized over forty five (45) months, with our monthly payment of principal and interest, totaling $38,000. We granted our lender a security interest in substantially all of our assets as collateral to secure our repayment obligations under our term loan.