11
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended June 30, 1995 Commission file number 2-47115
CAPITAL RESOURCES REAL ESTATE PARTNERSHIP II
(Exact name of registrant as specified in its charter)
ILLINOIS 36-6503795
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification
Number)
16415 Addison Road, Suite 200
Dallas, Texas 75248
(Address of principal executive offices)
Registrant's telephone number, including area code: (214) 380-8000.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities and
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.
Yes: Y No:
REGISTRANT IS A LIMITED PARTNERSHIP
PART I
FINANCIAL INFORMATION
The following financial statements are filed herewith:
Balance Sheet........................................................Page 3
Statement of Income and Expenses.....................................Page 4
(Quarterly)
Statement of Income and Expenses.....................................Page 5
(Year to Date)
Statement of Changes in Partner's Equity.............................Page 6
Statement of Cash Flows..............................................Page 7
Notes to Financial Statements........................................Page 8
The statements, insofar as they relate to the period subsequent to December
31, 1994, are unaudited.
CAPITAL RESOURCES REAL ESTATE PARTNERSHIP II
BALANCE SHEET
JUNE 30, 1995 JUNE 30, 1994
UNAUDITED UNAUDITED
ASSETS:
Investment in realestate
Land $ 137,971 $ 137,971
Building & Improvements 793,218 793,218
931,189 931,189
Less: Accumulated Depreciation (338,890) (313,890)
Net Investment in Realestate $ 592,299 $ 617,299
Cash including cash investments $ 171 $ 10,217
Escrow deposits 32,738 11,752
Capital replacement reserve 50,543 70,590
Liquidity reserve 23,342 23,342
Other assets 90,164 97,085
Total assets $ 789,257 $ 830,285
Liabilities: and Partner Equity:
Mortgage and notes payable $1,348,019 $1,357,422
Accrued expenses 12,835 36,638
Distribution payable 25,940 25,940
Interest payable 9,839 9,839
Security deposits 11,142 11,082
Real estate taxes payable 9,480 0
Payable to affiliate 150,534 78,757
Total Liabilities $1,567,789 $1,519,678
Partners equity $ (778,532) $ (689,393)
Total liabilities and partner $ 789,257 $ 830,285
equity
CAPITAL RESOURCES REAL ESTATE PARTNERSHIP II
STATEMENT OF INCOME AND EXPENSES
(UNAUDITED)
Quarter ended JUNE 30, 1994
June 30, 1995 AUDITED
INCOME
Rentals $ 101,868 $ 100,102
Other 2,472 2,977
Total $ 104,340 $ 103,079
EXPENSES
Maintenance and repairs $ 40,770 $ 14,685
Payroll 28,384 34,127
Utilities 10,677 17,558
General and administrative 6,799 10,191
Real estate taxes 4,380 5,100
Contract services 5,715 5,074
Insurance 2,664 2,685
$ 99,389 $ 89,420
Interest $ 27,499 $ 27,984
Depreciation and amortization $ 16,711 $ 15,511
General partner fees:
Property management fees $ 5,198 $ 4,562
Total Expenses $ 148,797 $ 137,477
Net Income $ (44,457) $ (34,398)
CAPITAL RESOURCES REAL ESTATE PARTNERSHIP II
STATEMENT OF INCOME AND EXPENSES
(UNAUDITED)
Year-to-Date Year-to-Date
June 30 1995 June 30 1994
Income
Rentals $ 197,145 $ 203,821
Other 4,283 6,764
Total $ 201,428 $ 210,585
Expenses:
Maintenance and repairs $ 78,775 $ 81,673
Payroll 48,440 36,419
Utilities 21,857 23,718
General and administrative 19,643 33,590
Real estate taxes 9,480 10,200
Contract services 8,262 10,867
Insurance 5,547 5,164
$ 192,004 $ 201,631
Interest $ 55,094 $ 56,242
Depreciation and amortization $ 33,422 $ 31,022
General partner fees:
Property management fees $ 10,047 $ 9,863
Total expenses $ 290,567 $ 298,758
Net income $ (89,139) $ (88,173)
CAPITAL RESOURCES REAL ESTATE PARTNERSHIP II
STATEMENT OF CHANGES IN PARTNER'S EQUITY
THREE MONTHS ENDED JUNE 30, 1995
Total Limited General
Partners Partners
Balance April 1, 1995 $(734,075) $(498,097) $(235,978)
Net income (loss) $ (44,457) $ (42,234) $ (2,223)
Balance June 30, 1995 $(778,532) $(540,331) $(238,201)
CAPITAL RESOURCES REAL ESTATE PARTNERSHIP II
(AN ILLNOIS LIMITED PARTNERSHIP)
STATEMENT OF CASH FLOWS
For The Quarter
Ended
June 30, 1995
CASH FLOW FROM OPERATING ACTIVITIES
Net income (loss) $(44,457)
Adjustments to reconcile net income to
Cash provided by operations:
Depreciation and amortization 16,711
Changes in assets and liabilities
Real estate taxes payable 4,380
Escrow depositsq 8,952
Due to affiliates 30,762
Accounts payable and accrued expenses (973)
Security deposits (1,148)
Other assets (11,773)
Total adjustments $ 46,911
Net cash provided by operating activities $ 2,454
Cash flows provided by investing activities
Net cash provided by investing activities 0
Cash flows provided by financing activities
Payments on mortgage payable (4,749)
Net cash provided by financing activities $ (4,749)
Net increase (decrease) in cash
And cash equivalents $ (2,295)
Cash and cash equivalents
Begining of quarter 2,466
Cash and cash equivalents
End of quarter $ 171
Cash flow information:
Cash paid during the quarter for interest 27,499
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
Basis of Presentation:
Certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the
Partnership believes that the disclosures are adequate to make
the information presented not misleading. It is suggested that
these condensed financial statements be read in conjunction with
the financial statements and notes thereto included in the
Partnership's latest annual report on Form 10K.
Item 2. Managements Discussion and Analysis of Financial
Condition and Result of Operations.
As of July 2, 1995 Brookhollow Apartments current occupancy rate
is 91.1%.
The Tulsa, Oklahoma market continues to be extremely
competitive. During 1994 major expenditures totaled
approximately $65,000. These non-recurring items included
carpentry and exterior painting of the entire property, roof
replacement and parking lot repairs.
The partnership reacquired the Brookhollow Apartments
through a foreclosure sale on December 16, l986. The property
was recorded at its net realizable value, $746,663, which was
determined to be the mortgage receivable balance of $2,152,500
plus costs of repossession of $14,l67, less deferred gain on sale
of $1,420,004.
In February, 1991, Amrecorp Realty Inc., resigned as the
Managing General Partner of the Partnership. As was communicated
to all limited partners this step was taken in order to minimize
any effect that Amrecorp's financial difficulties might have on
the Partnership. Management of the Partnership's assets was
transferred to Univesco, Inc., a Texas corporation, Robert J.
Werra, President.
The operations of the Brookhollow Apartments stabilized
during 1993. The property had an operating profit for 1993. An
attempt was made to sell the property prior to March, 1993. The
proposed sales price was $1,695,000. The purchaser was not able
to close the purchase and forfeited $50,000 of its earnest money
deposit. It is the General Partner's intention to continue
operating the Brookhollow Apartments while considering offers to
purchase the property.
On November 12, 1993 the Partnership refinanced the
property's secured debt with an 8.15%, ten year, mortgage from
Lexington Mortgage Company. The loan proceeds were provided
through a Real Estate Mortgage Investment Contract sponsored by
Donaldson, Lufkin & Jenrette. The $1,375,000 mortgage loan
provides for monthly payments of principal and interest of
$10,749, based on an amortization period of 300 months with a
final payment of approximately $1,118,000 due in December, 2003.
The loan proceeds were used to pay off the old loan balance of
$740,283, which included a discount of $40,775 from the old
lender, negotiated for early payment. The partnership agreement
was amended by vote of the limited partners to include the
appointment of a new corporate general partner, CRREP, Inc., a
Texas corporation wholly owned by Robert J. Werra. In
conjunction with the 1993 refinancing, the Partnership was
required to fund a liquidity reserve and a capital replacement
reserve which had balances of $48,500 and $22,400, respectively,
as of December 31, 1993. Each of these reserves is refundable to
the Partnership.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
The Registrant is not engaged in any material legal
proceedings other than ordinary and routine
litigation incidental to the business.
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
None
Item 4. Submission of Matters to a Vote of Security Holders.
None
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K as of June 30, 1995.
None
SIGNATURE
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.
CAPITAL RESOURCES REAL ESTATE
PARTNERSHIP II, an Illinois limited
partnership
By: /s/ Robert J. Werra
Robert J. Werra, General Partner
Date: August 11, 1995
