UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 10, 2021
Commission File Number: 000-23778
AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
| State of Minnesota | | 41-1729121 |
(State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) |
| | | |
30 East 7th Street, Suite 1300 St. Paul, Minnesota 55101 | | (651) 227-7333 |
| (Address of principal executive offices) | | (Registrant’s telephone number) |
| Not Applicable |
| (Former name, former address and former fiscal year, if changed since last report) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
| NONE | | NONE | | NONE |
Securities registered pursuant to Section 12(g) of the Act:
| | Limited Partnership Units | |
| | (Title of class) | |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 – Financial Information
Item 2.01 Completion of Acquisition or Disposition of Assets.
On September 10, 2021, the Partnership sold its 70% interest in a Staples store in Vernon Hills, Illinois to Rizzuti Holdings III, LLC and AJE Properties II L.C., unrelated third parties. The Partnership received net cash proceeds of approximately $2,120,800 for the property, which resulted in a net loss of approximately $35,100. During the second quarter of 2021, a charge to operations for real estate impairment of $413,789 was recognized, which was the difference between the carrying value at June 30, 2021 of $2,569,789 and the estimated fair value of $2,156,000.
Section 9 – Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(a) Financial statements of businesses acquired – Not Applicable.
(b) Pro forma financial information – A limited number of pro forma adjustments are required to illustrate the effects of the transaction on the balance sheet and income statement. The following narrative description is furnished in lieu of pro forma statements. Assuming the Partnership had sold the property on January 1, 2020:
The Partnership's Investments in Real Estate would have been reduced by $2,711,419 and its Current Assets (cash) would have increased by $2,120,800 and Partners’ Capital would have decreased by $590,619.
For the year ended December 31, 2020, Income from Operations would have decreased $119,370, representing a decrease in rental income of $214,480, a decrease in depreciation expense of $94,420 and a decrease in property management expenses of $690. For the six months ended June 30, 2021, Income from Operations would have decreased $58,764, representing a decrease in rental income of $107,240, a decrease in depreciation expense of $47,210 and a decrease in property management expenses of $1,266.
The net effect of these pro forma adjustments would have caused Net Income to decrease from $486,845 to $367,475 and from $597,827 to $539,063, which would have resulted in Net Income of $19.10 and $28.83 per Limited Partnership Unit outstanding for the year ended December 31, 2020 and the six months ended June 30, 2021, respectively.
(c) Shell company transactions – Not Applicable.
(d) Exhibit 10.1 – Purchase and Sale Agreement dated July 8, 2021 between the Partnership and Grand Prairie Partners, LLC relating to the property at 1600 North Milwaukee Avenue, Vernon Hills, Illinois.
Exhibit 10.2 – Assignment and Assumption of Real Estate Purchase and Sale Agreement between the Partnership, Grand Prairie Partners, LLC, Rizzuti Holdings III, LLC and AJE Properties II L.C. relating to the property at 1600 North Milwaukee Avenue, Vernon Hills, Illinois.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | |
| | AEI Net Lease Income & Growth Fund XX |
| | Limited Partnership |
| | | |
| | By: | AEI Fund Management XX, Inc. |
| | Its: | Managing General Partner |
| | | |
| | | |
Date: September 16, 2021 | By: | /s/ Keith E Petersen
|
| | | Keith E. Petersen |
| | | Chief Financial Officer |
0000894245 2021-09-10 2021-09-10
