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and Certificate of Limited Partnership of Dakotah Hills was
filed with the Arizona Secretary of State (partnership
agreement). It was established to acquire a parcel of
property from another partnership with the same general
partners, Sierra Sunrise Limited Partnership, and to
complete the construction of an office building on the
property for the purpose of leasing the office building to
one of its general partners, the JNC Companies. The
property consisted of approximately 1.113 acres of land
located in the metropolitan Tucson, Arizona, area. As part
of the transaction, the seller agreed to assign to Dakotah
Hills a lease of the office building to the JNC Companies
for a term of 7 years with an option to renew for 3 years.
A stated objective of the limited partnership was to hold
the real property until the expiration of the lease and
then to sell it at a gain.
In addition to the capital contributed by the four
general partners, in the aggregate amount of $1,000,
Dakotah Hills was capitalized by the sale of 35 units of
limited partnership interest for $26,000 per unit. The
purchaser of each limited partnership unit paid $5,200 in
cash and issued a promissory note for the balance of the
principal amount of $20,800. The promissory note was
payable to the partnership, without interest, in four
annual installments of $5,200 each commencing on October 1,
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Last modified: May 25, 2011