DiVall Insured Income Properties 2 Limited Partnership was engaged in owning and operating commercial real estate leased to Wendy's franchisees, generating rental income and capital gains, now in liquidation after selling all properties by 2024.

# Company Summary: DiVall Insured Income Properties 2 Limited Partnership

## Business Overview
- **Type:** Limited Partnership organized under Wisconsin law
- **Management:** Managed by its general partner, The Provo Group, Inc. (TPG)
- **Primary Business:** Investment in and operation of commercial real estate properties, specifically leased properties to franchisees of Wendy’s fast-food restaurants

## Operations and Assets
- **Properties Owned:** Historically owned three properties located in South Carolina, all leased to Wendy’s franchisees
- **Property Sales:** During 2023 and 2024, sold a total of **eight properties** (three in 2024, five in 2023)
- **Current Property Holdings (as of December 31, 2024):** **None**; all properties have been sold
- **Property Types:** Commercial real estate leased to quick service restaurant franchisees (Wendy’s)

## Customers and Leases
- **Tenants:** Wendy’s franchise operators
- **Lease Terms:** Typically 5 to 20 years for original leases; all properties sold before or after extensions, with properties held for sale prior to transaction

## Financials
- **Number of Limited Partners (as of March 1, 2025):** 1,089 partners holding **46,280.3 units** of limited partnership interests
- **Revenue (2024):** Approximately **$370,462** from rental income (significantly lower than 2023 due to sale of properties)
- **Net Income (2024):** **$7,686,814** (down from $12,283,772 in 2023 due to fewer properties and lower rental income)
- **Income per Limited Partner Interest (2024):** Approximately **$164** (compared to $263 in 2023)
- **Total Assets (2024):** Approximately **$1,385,153**, consisting mainly of cash and cash equivalents, and investments held in an indemnification trust
- **Distributions:** Substantially all net proceeds from property sales during 2023 and 2024 have been distributed to limited partners

## Summary of Business Activities
- The Partnership was primarily engaged in owning and operating commercial real estate leased to Wendy’s franchisees, generating rental income and capital gains upon property sales.
- As part of its wind-up process, it sold all remaining properties by October 2024, distributed proceeds to partners, and is now focused on liquidating remaining assets, settling obligations, preparing tax documents, and final distributions.
- **Employees:** None; business operations are managed by TPG and its affiliates

## Key Management
- **General Partner:** The Provo Group, Inc., with Bruce A. Provo as its principal executive officer
- **Advisory Board Members:** Jesse Small and Albert Kramer (provide guidance but have no management authority)

## Additional Details
- The Partnership's income and expenses directly impact limited partners, with no public trading market for interests.
- No dividends are paid; distributions are made at management’s discretion, typically semi-annually.
- All property-related operations are conducted in the United States; no foreign operations or jurisdictions are involved.

DiVall Insured Income Properties 2 Limited Partnership focuses on owning and operating a commercial real estate portfolio primarily in the restaurant sector, particularly Wendy's franchises, while managing an orderly liquidation of remaining assets.

# DiVall Insured Income Properties 2 Limited Partnership - Business Overview

**Organization & Structure**
- **Name:** DiVall Insured Income Properties 2 Limited Partnership (the “Partnership”)
- **Type:** Limited Partnership organized under the Wisconsin Uniform Limited Partnership Act
- **General Partner:** The Provo Group, Inc. ("TPG")
- **Limited Partners:** As of December 31, 2023, the Partnership had **1,092 limited partners** owning an aggregate of **46,280.3 units of Limited Partnership Interests**.

**Business Focus**
- The Partnership is primarily engaged in **owning and operating an investment portfolio of commercial real estate properties**, specifically in the restaurant sector.

**Portfolio of Properties**
- As of December 31, 2023, the Partnership owned **three Properties**, all located in South Carolina, which are: 
    - **Wendy’s at Sam Rittenberg Blvd, Charleston, SC** (leased to JAI Hospitality RG, LLC)
    - **Wendy’s at Folly Rd, Charleston, SC** (leased to JAI Augusta, LLC)
    - **Wendy’s at Richland Ave, Aiken, SC** (leased to Wendgusta, LLC)
  
- All properties are **triple-net leased**, meaning tenants are responsible for property operating costs including maintenance, repairs, utilities, property taxes, and insurance.
- Lease terms are generally between **five to twenty years**, with all leases including a **percentage rent provision** of **7%** of gross sales above a specified threshold.

**Financial Overview**
- **Revenue Generation:** The total operating rental income from the three properties, as of the latest data, is approximately **$470,348** annually.
- **Recent Disposal Activities:** During 2023, the Partnership sold several properties, realizing substantial gains:
    - Sale gains from various properties totaled approximately **$10 million** throughout the year, indicating strong performance in asset management.

**Management and Advisory**
- Management of the Partnership is handled by TPG under a **Permanent Manager Agreement (PMA)**. 
- The PMA was renewed effective January 1, 2023, lasting until December 31, 2024.
- The Partnership does not have any **employees**, as all operations are managed by TPG.

**Risk Factors**
- The Partnership's business is subject to risks associated with commercial real estate investments, including:
    - Economic fluctuations,
    - Tenant performance,
    - Market competition,
    - The illiquid nature of real estate assets.

**Cybersecurity**
- The Partnership does not have a formal cybersecurity risk management program, although the General Partner oversees risks in this area.

**Conclusion**
- The Partnership focuses on providing steady rental income through its strategically leased properties while managing an orderly liquidation of remaining assets as its scheduled dissolution in November 2023 has passed. The focus on Wendy's franchisee properties places it in a specialized niche within the commercial real estate market.

DIVALL INSURED INCOME PROPERTIES 2 LIMITED PARTNERSHIP

10-K / April 15, 2025

10-K / April 1, 2024

10-K / April 15, 2025

Company Summary: DiVall Insured Income Properties 2 Limited Partnership

Business Overview

Operations and Assets

Customers and Leases

Financials

Summary of Business Activities

Key Management

Additional Details