<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 25)*
NATIONAL INCOME REALTY TRUST
................................................................................
(Name of Issuer)
Shares of Beneficial Interest, no par value
................................................................................
(Title of Class of Securities)
63645C-20-1
................................................................................
(CUSIP Number)
William S. Friedman
280 Park Avenue
East Building, 20th Floor
New York, New York 10017
(212) 949-8001 (fax)
(212) 949-5000
................................................................................
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
November 24, 1998
................................................................................
(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 ss.ss. 240.1.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box 13d-1(b)(3) or (4), check the following box [ ].
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7(b) for other
parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting persons'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 f the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE> 2
CUSIP No. 63645C-20-1
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------------------------
1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only)
William S. Friedman
- --------------------------------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) PF
- --------------------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization United States of America
- --------------------------------------------------------------------------------------------------------------------
7) Sole Voting Power -0-
--------------------------------------------------------------------------------------------------
Number of
Shares Bene- 8) Shared Voting Power -0-
ficially
Owned by --------------------------------------------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With
--------------------------------------------------------------------------------------------------
10) Shared Dispositive Power -0-
- --------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person -0-
- --------------------------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ]
- --------------------------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) -0-
- --------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) IN
</TABLE>
<PAGE> 3
CUSIP No. 63645C-20-1
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------------------------
1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only)
Lucy N. Friedman
- --------------------------------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) PF
- --------------------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization United States of America
- --------------------------------------------------------------------------------------------------------------------
7) Sole Voting Power -0-
--------------------------------------------------------------------------------------------------
Number of
Shares Bene- 8) Shared Voting Power -0-
ficially
Owned by --------------------------------------------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With
--------------------------------------------------------------------------------------------------
10) Shared Dispositive Power -0-
- --------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person -0-
- --------------------------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ]
- --------------------------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) -0-
- --------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) IN
</TABLE>
<PAGE> 4
CUSIP No. 63645C-20-1
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------------------------
1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only)
Beachwold Partners, L.P., FEI 75-25682952
- --------------------------------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) WC
- --------------------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization Texas
- --------------------------------------------------------------------------------------------------------------------
7) Sole Voting Power -0-
--------------------------------------------------------------------------------------------------
Number of
Shares Bene- 8) Shared Voting Power -0-
ficially
Owned by --------------------------------------------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With
--------------------------------------------------------------------------------------------------
10) Shared Dispositive Power -0-
- --------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person -0-
- --------------------------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ]
- --------------------------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) -0-
- --------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) PN
</TABLE>
<PAGE> 5
CUSIP No. 63645C-20-1
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------------------------
1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only)
Tarragon Capital Corporation, FEI 75-2340089
- --------------------------------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) WC
- --------------------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization Texas
- --------------------------------------------------------------------------------------------------------------------
7) Sole Voting Power -0-
--------------------------------------------------------------------------------------------------
Number of
Shares Bene- 8) Shared Voting Power -0-
ficially
Owned by --------------------------------------------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With
--------------------------------------------------------------------------------------------------
10) Shared Dispositive Power -0-
- --------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person -0-
- --------------------------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ]
- --------------------------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) -0-
- --------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) CO
</TABLE>
<PAGE> 6
CUSIP No. 63645C-20-1
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------------------------
1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only)
Tarragon Partners, Ltd. FEI 75-2340088
- --------------------------------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) WC
- --------------------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization Texas
- --------------------------------------------------------------------------------------------------------------------
7) Sole Voting Power -0-
--------------------------------------------------------------------------------------------------
Number of
Shares Bene- 8) Shared Voting Power -0-
ficially
Owned by --------------------------------------------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With
--------------------------------------------------------------------------------------------------
10) Shared Dispositive Power -0-
- --------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person -0-
- --------------------------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ]
- --------------------------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) -0-
- --------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) PN
</TABLE>
<PAGE> 7
CUSIP No. 63645C-20-1
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------------------------
1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only)
The Friedman Trust, FEI 13-6915547
- --------------------------------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) WC
- --------------------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization New York
- --------------------------------------------------------------------------------------------------------------------
7) Sole Voting Power -0-
--------------------------------------------------------------------------------------------------
Number of
Shares Bene- 8) Shared Voting Power -0-
ficially
Owned by --------------------------------------------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With
--------------------------------------------------------------------------------------------------
10) Shared Dispositive Power -0-
- --------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person -0-
- --------------------------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ]
- --------------------------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) -0-
- --------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) OO
</TABLE>
<PAGE> 8
CUSIP No. 63645C-20-1
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------------------------
1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only)
William S. Friedman Grantor Trust, FEI 13-6936654
- --------------------------------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) WC
- --------------------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization New York
- --------------------------------------------------------------------------------------------------------------------
7) Sole Voting Power -0-
--------------------------------------------------------------------------------------------------
Number of
Shares Bene- 8) Shared Voting Power -0-
ficially
Owned by --------------------------------------------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With
--------------------------------------------------------------------------------------------------
10) Shared Dispositive Power -0-
- --------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person -0-
- --------------------------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ]
- --------------------------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) -0-
- --------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) OO
</TABLE>
<PAGE> 9
ITEM 1. SECURITY AND ISSUER.
This Amendment No. 25 to Statement on Schedule 13D ("Amendment No. 25") is
an amendment to, and complete restatement of, Schedule 13D and prior amendments
thereto previously filed with the Securities and Exchange Commission (the
"Commission") relating to shares of beneficial interest, no par value per share
(the "NIRT Shares") of National Income Realty Trust, a California real estate
investment trust ("NIRT" or the "Issuer"), which had its principal executive
offices located at 280 Park Avenue, East Building, 20th Floor, New York, New
York 10017. The CUSIP Number of the NIRT Shares is 63645C-20-1.
At special meetings of the shareholders of NIRT and Tarragon Realty
Investors, Inc. ("Tarragon") held on October 20, 1998, the shareholders of each
entity approved a proposal to incorporate NIRT into a California corporation
through the "Incorporation Procedure" described in a Joint Proxy
Statement/Prospectus dated September 10, 1998 and approved an Agreement and Plan
of Merger dated as of June 5, 1998 (the "Merger Agreement") among Tarragon and
such California corporation as the immediate successor to NIRT by virtue of the
Incorporation Procedure and the transactions contemplated by the Merger
Agreement including the conversion of the NIRT Shares pursuant to such merger
into the right to receive 1.97 shares of Common Stock, par value $0.01 per
share, of Tarragon. On November 23, 1998 NIRT was incorporated pursuant to
Section 200.5 of the California Corporation Code under the name National Income
Realty Corporation and such entity was merged with and into Tarragon on November
24, 1998 with Tarragon as the surviving entity and the ultimate successor to
NIRT. Thereupon, each of the "Reporting Persons" (as defined in Item 2 below)
ceased to be holders of any NIRT Shares.
ITEM 2. IDENTITY AND BACKGROUND.
(a) - (f) This Amendment No. 25 is being filed on behalf of Lucy N.
Friedman, William S. Friedman, Beachwold Partners, L.P., a Texas limited
partnership, Tarragon Capital Corporation, a Texas corporation, Tarragon
Partners, Ltd., a Texas limited partnership whose sole general partner is
Tarragon Capital Corporation, and The Friedman Trust, a New York trust formed
under the Will of Samuel N. Friedman, the father of William S. Friedman, for the
benefit of the children and grandchildren of Samuel Friedman, and The William S.
Friedman Grantor Trust (of which Mrs. Lucy N. Friedman is the trustee) for the
benefit of Lucy N. Friedman and her children. All of Lucy N. Friedman, William
S. Friedman, Beachwold Partners, L.P., Tarragon Capital Corporation, and
Tarragon Partners, Ltd., The Friedman Trust and The William S. Friedman Grantor
Trust are sometimes collectively referred to herein as the "Reporting Persons."
1
<PAGE> 10
The Reporting Persons filed an Original Statement on Schedule 13D and
Amendment Nos. 1 through 24 thereto (all collectively the "Amended Statement"),
Amendment No. 24 of which was filed with respect to event occurring September
10, 1998. All items set forth in this Amendment No. 25 are in addition to the
information provided in the Amended Statement; accordingly, only the items which
have changed since the filing of Amendment No. 24 are the subject of this
Amendment No. 25. All information set forth in Item 2 of the Amended Statement
as last reflected by Amendment No. 24 thereto remains correct as of the date of
this Amendment No. 25.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(e) See Item 1 above for a description of the "Incorporation Procedure" and
merger which resulted in NIRT being incorporated as the California corporation
and that entity merging with and into Tarragon effective November 24, 1998. The
result of such transaction is that each of the Reporting Persons ceased to be
holders of the NIRT Shares and each NIRT Share was converted into the right to
receive 1.97 shares of Tarragon Common Stock. Therefore, the date on which the
Reporting Persons ceased to be the beneficial owner of more than 5% of the NIRT
Shares was November 24, 1998.
2
<PAGE> 11
SIGNATURES
After reasonable inquiry and to the best of their respective knowledge and
belief, the undersigned certify that the information set forth in this Amendment
No. 25 to Statement on Schedule 13D is true, complete and correct. Dated:
January 28, 1999
THE FRIEDMAN TRUST, acting TARRAGON CAPITAL CORPORATION
by its trustees
By: /s/ William S. Friedman* By: /s/ William S. Friedman
-------------------------------- ---------------------------------
Robert A. Friedman, William S. Friedman,
Trustee President
By: /s/ William S. Friedman* TARRAGON PARTNERS, LTD.,
-------------------------------- acting by, through and under
Gerald C. Friedman, its sole general partner
Trustee Tarragon Capital Corporation
By: TARRAGON CAPITAL
CORPORATION
By: /s/ William S. Friedman
-------------------------------
William S. Friedman,
President
WILLIAM S. FRIEDMAN GRANTOR BEACHWOLD PARTNERS, L.P.,
TRUST, acting through its acting by, through and under
Trustee one of its general partners
By: /s/ William S. Friedman* By: /s/ William S. Friedman
-------------------------------- ---------------------------------
Lucy N. Friedman, William S. Friedman,
Trustee General Partner
/s/ William S. Friedman* /s/ William S. Friedman
- ------------------------------------ -------------------------------------
Lucy N. Friedman, William S. Friedman,
Individually Individually
- --------------------
* Executed by William S. Friedman pursuant to a Power of Attorney.
