UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
California Real Estate Investment Trust
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(Name of Issuer)
Common Shares of Beneficial Interest
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(Title of Class of Securities)
130559107
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(CUSIP Number)
Donald J. Liebentritt, Esq.
Zell General Partnership, Inc.
Two North Riverside Plaza, Suite 600
Chicago, Illinois 60606
(312) 454-1800
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
January 3, 1997
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box / /.
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act.
<PAGE>
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CUSIP No. 130559107 SCHEDULE 13D Page 2 of 9 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CalREIT Investors Limited Partnership
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) / /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
State of Illinois
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7 SOLE VOTING POWER
6,959,593
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY EACH
REPORTING
PERSON WITH
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8 SHARED VOTING POWER
-0-
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
6,959,593
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,959,593
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
76.0%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 130559107 SCHEDULE 13D Page 3 of 9 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Zell General Partnership, Inc.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) / /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
State of Illinois
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7 SOLE VOTING POWER
6,959,593
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NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
--------------------------------------------------------------------
8 SHARED VOTING POWER
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
6,959,593
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,959,593
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
76.0%
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 130559107 SCHEDULE 13D Page 4 of 9 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Samuel Zell
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) / /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
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7 SOLE VOTING POWER
6,959,593
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
-------------------------------------------------------------------
8 SHARED VOTING POWER
-------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
6,959,593
-------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,959,593
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
76.0%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 130559107 SCHEDULE 13D Page 5 of 9 Pages
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Item 1. Security and Issuer.
This statement relates to the common shares of beneficial interest, par
value $1.00 per share (the "Common Shares"), of California Real Estate
Investment Trust (the "Issuer"), whose principal office is 131 Steuart Street,
Suite 200, San Francisco, California 94105.
Item 2. Identity and Background.
This statement is filed by: (i) CalREIT Investors Limited Partnership, an
Illinois limited partnership ("CalREIT LP"), the holder of record of 6,959,593
Common Shares of the Company; (ii) Zell General Partnership, Inc., an Illinois
corporation ("Zell GP"), the general partner of CalREIT LP; and (iii) Mr. Samuel
Zell, a citizen of the United States, who, as trustee of the Samuel Zell
Revocable Trust under trust agreement dated November 7, 1990, is the sole
stockholder of Zell GP. The foregoing persons are hereinafter referred to as the
"Reporting Persons."
The principal place of business of each of CalREIT LP, Zell GP and Mr. Zell
is c/o Equity Group Investments, Inc., Two North Riverside Plaza, Chicago,
Illinois 60606.
Attached as Appendix A to Item 2 is information concerning the directors,
executive officers and stockholder of Zell GP, which is required to be disclosed
pursuant to Item 2 and General Instruction C to Schedule 13D.
None of the Reporting Persons nor, to their knowledge, any of the
individuals listed in Appendix A to Item 2, has, during the last five years (i)
been convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or (ii) been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting activities subject to, federal or state securities
laws or finding any violation of such laws.
Item 3. Source and Amount of Funds or Other Consideration.
Capital contributions made by CalREIT LP's partners to CalREIT LP were used
to pay the aggregate purchase price of $20,222,011.00 for the 6,959,593 Common
Shares purchased on January 3, 1997.
Item 4. Purpose of Transaction.
The Reporting Persons will consider various alternatives with respect to
their investment in the Issuer, including, but not limited to, a
recapitalization and reorganization of the Issuer that would allow it to operate
as a financial services company. Any such reorganization could entail changing
the Issuer's name, principal place of business and/or tax election status, as
well as issuances of new classes of equity securities. Any such reorganization
could also entail:
(a) the acquisition of additional securities of the Issuer, or the
disposition of securities of the Issuer in the open market or otherwise;
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CUSIP No. 130559107 SCHEDULE 13D Page 6 of 9 Pages
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(b) an extraordinary corporate transaction, such as a merger or
liquidation, involving the Issuer;
(c) a sale or transfer of a material amount of assets of the Issuer;
(d) in addition to the changes disclosed below, a change in the present
Board of Trustees or management of the Issuer;
(e) a material change in the present dividend policy of the Issuer;
(f) other material changes in the Issuer's business or corporate structure;
(g) changes in the Issuer's certificate of incorporation or bylaws or other
actions which may impede the acquisition of control of the Issuer by a person;
or
(h) actions similar to those enumerated above.
The Reporting Persons' determination with respect to the foregoing
possibilities will depend upon various factors, including, but not limited to,
the Reporting Persons' evaluation of the Issuer and its prospects, general
market and economic conditions (including conditions affecting the real estate
market in general), other opportunities available to the Reporting Persons and
other factors the Reporting Persons may deem relevant to their investment
decision.
On January 2, 1997, in connection with the purchase by CalREIT LP of the
Common Shares with respect to which beneficial ownership is reported in this
Schedule 13D, the Board of Trustees of the Issuer increased the number of
Trustees of the Issuer to seven, accepted the resignation of Trustee John
McMahan and elected the following persons as Trustees of the Issuer: Gary R.
Garrabrant, John R. Klopp and Thomas E. Kruger.
Item 5. Interest in Securities of the Issuer.
(a) As of the close of business on January 10, 1997, CalREIT LP was the
owner of record of 6,959,593 Common Shares, constituting 76.0% of the Issuer's
outstanding Common Shares.
(b) The Reporting Persons have sole power to vote or to direct the vote of
all 6,959,593 of the Common Shares referred to in paragraph (a) above, and sole
power to dispose or to direct the disposition of all such shares.
(c) On January 3, 1997, CalREIT LP purchased directly from The Peregrine
Real Estate Trust, a California business trust, in a privately negotiated
transaction, 6,959,593 Common Shares, for a purchase price of $20,222,0111,
pursuant to a stock purchase agreement dated as of January 3, 1997.
(d) No other person is known to have the right to receive or the power to
direct the receipt of dividends from, or the proceeds from the sale of, such
Common Shares.
(e) Not applicable.
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CUSIP No. 130559107 SCHEDULE 13D Page 7 of 9 Pages
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Item 6. Contracts, Arrangements, Understandings or Relationships with
respect to Securities of the Issuer.
On January 3, 1997, CalREIT LP purchased directly from The Peregrine Real
Estate Trust, a California business trust, 6,959,593 Common Shares pursuant to a
stock purchase agreement dated as of January 3, 1997.
Item 7. Material to be Filed as Exhibits.
None.
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of its knowledge and belief, each
of the undersigned certifies that the information set forth in this statement is
true, complete and correct and agrees that this statement may be filed jointly
with the other undersigned party.
Dated: January 13, 1997
CalREIT Investors Limited Partnership
By: Zell General Partner, Inc.,
its general partner
By: /s/ Donald Liebentritt
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Name: Donald Liebentritt
Title: Vice President
Zell General Partnership, Inc.
By: /s/ Donald Liebentritt
--------------------------------------
Name: Donald Liebentritt
Title: Vice President
Samuel Zell
/s/ Samuel Zell
--------------------------------------
Samuel Zell
8
<PAGE>
APPENDIX A TO ITEM 2
Set forth below is information concerning the directors, executive officers
and sole stockholder of Zell General Partnership, Inc., which is the sole
general partner of CalREIT Investors Limited Partnership. Each of the
individuals identified below is a United States citizen.
Samuel Zell is the sole director of Zell General Partnership, Inc. Mr.
Zell, as trustee of the Samuel Zell Revocable Trust, under trust agreement dated
November 7, 1990, is the sole stockholder of Zell General Partnership, Inc. The
principal executive officers of Zell General Partnership, Inc. are as follows:
Samuel Zell President
Sheli Z. Rosenberg Vice President
Donald J. Liebentritt Vice President
Timothy H. Callahan Vice President
Arthur A. Greenberg Vice President and Treasurer
The principal occupation of Mr. Zell is Chairman of Equity Group
Investments, Inc., a privately held investment company engaged in the
acquisition and management of real estate and other commercial enterprises. The
principal occupation of Ms. Rosenberg is President and Chief Executive Officer
of Equity Group Investments, Inc. The principal occupation of Mr. Liebentritt is
Executive Vice President and General Counsel of Equity Group Investments, Inc.
and Chairman of the law firm Rosenberg & Liebentritt, P.C. The principal
occupation of Mr. Callahan is Chief Executive Officer of Equity Office Holdings,
L.L.C, a national office property management company. The principal occupation
of Mr. Greenberg is President of the accounting firm Greenberg & Pociask, Ltd.
The business address of Messrs. Zell, Liebentritt, Callahan and Greenberg, and
Ms. Rosenberg is c/o Equity Group Investments, Inc., Two North Riverside Plaza,
Chicago, Illinois 60606.
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