AEI Partnership Completes Arkansas Property Sale

The sale of a medical clinic in Lonoke, Arkansas, reflects the partnership's evolving asset management strategy.

December 20, 2024

AEI Income & Growth Fund XXII Completes Key Transaction

AEI Income & Growth Fund XXII Limited Partnership recently finalized the sale of a medical clinic property in Lonoke, Arkansas, marking a key move in the fund's ongoing portfolio adjustments.

The property, a St. Vincent Medical Clinic, was sold to Grateful Holdings LLC, a third-party entity not affiliated with the partnership. This transaction, concluded on December 17, 2024, generated net cash proceeds of $664,000, yielding a net gain of $35,000 for the partnership.

The sale aligns with the fund's strategic objectives, focusing on optimizing asset allocation while adapting to evolving market conditions. As part of its efforts to streamline holdings, the partnership achieved a notable cash inflow, reinforcing its liquidity position and enabling flexibility for future investments.

Financial Repercussions and Adjustments

A narrative description included in the filing outlines the pro forma impact of this transaction. Had the sale occurred on January 1, 2023, the partnership's investments in real estate would have decreased by $739,000, with a corresponding increase in cash assets by $664,000. Meanwhile, partners' capital would have seen a decline of $75,000.

Operationally, the sale would have led to a $49,896 reduction in income from operations for the year ended December 31, 2023, primarily due to diminished rental income offset by lower depreciation and property management expenses. Net income would have declined from $51,795 to $1,899 for the same period, emphasizing the considerable financial impact of the disposition.

Looking Ahead

This transaction underscores AEI Income & Growth Fund XXII's dynamic approach to asset management, allowing the partnership to adapt to emerging opportunities while responding to changing market conditions. With the sale completed, the partnership is well-positioned to pursue strategic investments that align with its long-term growth goals.