Note 6 - Investment in Sentinel Omaha, LLC

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures Disclosure [Text Block]

(6)	INVESTMENT IN SENTINEL OMAHA, LLC

In 2007, the Partnership made an investment in the amount of $37,200,000 in Sentinel Omaha, LLC (“Omaha”). Omaha is a real estate investment company. During the quarter ended March 31, 2022 Omaha sold its last real estate property. Omaha is an affiliate of the Partnership’s general partner. The investment represents a 30% ownership interest in Omaha.

During the quarter ended March 31, 2022, Omaha paid a distribution of $90,000,000 to its investors. The Partnership’s 30% share of the distribution was $27,000,000

The following are the condensed financial statements (000’s omitted) of Omaha as of September 30, 2022 and December 31, 2021 and the nine months ended September 30, 2022 and 2021.

	(Unaudited)			(Audited)
Balance Sheet	September 30, 2022			December 31, 2021

Investment in real estate, net	$	0		$	56,777
Cash and cash equivalents	$	9,439		$	37,268
Other assets		1,884			7,865
Other liabilities		(117	)		(617	)
Members equity	$	11,206		$	101,293

	(Unaudited)			(Unaudited)
Statement of Operations	September 30, 2022			September 30, 2021

Rent and other income	$	158		$	12,058
Real estate operating expenses		(255	)		(6,826	)
Other income (expenses)		8			(291	)
Net realized income		34,412			54,900
Net unrealized income (losses)		(34,409	)		(20,965	)

Net increase (decrease) in net assets	$	(86	)	$	38,876

During April 2021, Omaha sold its garden apartment property located in Charleston, South Carolina for a sale price of $47,250,000. Net sales proceeds were used to first pay selling expenses. The remaining net sales proceeds have been reserved to retire Omaha’s secured mortgage loan encumbering a garden apartment property located in Nashville, Tennessee and to retire Omaha’s secured mortgage loan encumbering a garden apartment property located in Aurora, Illinois to payoff Omaha’s long term debt.

During August 2021, Omaha sold one of its garden apartment properties located in Nashville, Tennessee for a sale price of $77,235,000. Net sales proceeds were used to first pay selling expenses. The remaining portion of the sales proceeds were used to pay a distribution of $73,000,000 to its investors. The Partnership’s 30% allocation of the distribution was $21,900,000.

During November 2021, Omaha sold its garden apartment property located in Aurora, Illinois for a sale price of $34,500,000. Net sales proceeds were used to first pay selling expenses. The remaining portion of the sales proceeds were used along with cash reserves to pay a distribution of $52,600,000 to its investors. The Partnership’s 30% allocation of the distribution was $18,410,000.

During January 2022 sold its last real estate property which was located in Nashville, Tennessee for a price of $57,350,000. Net sales proceeds were used to first pay selling expenses. The remaining portion of the sales proceeds were used along with cash reserves to pay a distribution of $90,000,000 to its investors. The Partnership’s 30% allocation of the distribution was $27,000,000.

SB PARTNERS 10-Q