SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported) December 7, 2000
AEI INCOME & GROWTH FUND 23 LLC
(Exact Name of Registrant as Specified in its Charter)
State of Delaware
(State or other Jurisdiction of Incorporation or
Organization)
000-30449 41-1922579
(Commission File Number) (I.R.S. Employer
Identification No.)
1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
(651) 227-7333
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Item 2. Acquisition or Disposition of Assets.
On December 7, 2000, the LLC purchased a newly
constructed Johnny Carino's restaurant in Victoria, Texas
from Kona Restaurant Group, Inc. The total cash purchase
price of the land and building was approximately $1,672,500.
Kona Restaurant Group, Inc. is not affiliated with the
Partnership.
The cash, used in purchasing the property, was from
the proceeds of sale of Limited Membership Units.
Item 7. Financial Statements and Exhibits.
(a) Financial statements of businesses acquired. -
Not Applicable. Property was newly
constructed.
(b) A limited number of proforma 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 the
proforma statements:
Assuming the LLC had acquired the property on
September 30, 1999 (date LLC commenced
operations), the LLC's Investments in Real
Estate would have increased by $1,672,500 and
its Current Assets (cash) would have decreased
by approximately $1,672,500.
The Total Income for the LLC would have
increased from $25,872 to $69,775 for the
period ended December 31, 1999 and from
$254,873 to $367,114 for the nine months ended
September 30, 2000 if the LLC had owned the
property during the periods.
Depreciation Expense would have increased by
$12,899 and $38,697 for the period ended
December 31, 1999 and the nine months ended
September 30, 2000, respectively.
The net effect of these proforma adjustments
would have caused Net Income to increase from
$(33,786) to $(2,782) and from $130,725 to
$204,269, which would have resulted in Net
Income of $(1.20) and $38.11 per Limited
Membership Unit outstanding for the period
ended December 31, 1999 and the nine months
ended September 30, 2000, respectively.
(c) Exhibits
Exhibit 10.1 - Net Lease
Agreement dated April 18, 2000,
between the LLC and Kona
Restaurant Group, Inc. relating
to the property at 4904 North
Navarro, Victoria, Texas
(incorporated by reference to
Exhibit 10.2 of Form 8-K filed
with the Commission on May 3,
2000).
Exhibit 10.2 First Amendment to
Net Lease Agreement dated
December 7, 2000, between the LLC
and Kona Restaurant Group, Inc.
relating to the property at 4904
North Navarro, Victoria, Texas.
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 INCOME & GROWTH FUND 23 LLC
By: AEI Fund Management XXI, Inc.
Its: Managing Member
Date: December 8, 2000 /s/ Mark E Larson
By: Mark E. Larson
Its Chief Financial Officer
(Principal Accounting and
Financial Officer)
