U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-KSB
(Mark One)
X ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT
OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1995
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED]
For the transition period from to
Commission file number 0-9704
ANGELES PARTNERS IX
California 95-3417137
(State or other jurisdiction of
incorporation or organization) (I.R.S. Employer Identification No.)
One Insignia Financial Plaza, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices) (Zip Code)
Issuer's telephone number (864) 239-1000
Securities registered under Section 12(b) of the Exchange Act:
None
Securities registered under Section 12(g) of the Exchange Act:
Limited Partnership Units
(Title of class)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 X No
Check if there is no disclosure of delinquent filers in response to Item
405 of Regulation S-B contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-
KSB or any amendment to this Form 10-KSB. X
State issuer's revenues for its most recent fiscal year. $7,167,070
State the aggregate market value of the voting stock held by nonaffiliates
of the registrant. The aggregate market value shall be computed by reference
to the price at which the stock was sold, or the average bid and asked prices
of such stock, as of December 31, 1995. Market value information for
Registrant's Partnership Interest is not available. Should a trading market
develop for these Interests, it is the General Partner's belief that such
trading would not exceed $25,000,000.
DOCUMENTS INCORPORATED BY REFERENCE
None
PART I
Item 1. Description of Business
Angeles Partners IX (the "Partnership" or "Registrant") is a publicly-
held limited partnership organized under the California Uniform Limited
Partnership Act pursuant to a Certificate and Agreement of Limited Partnership
(hereinafter referred to as the "Agreement") dated September 12, 1979. The
General Partner of the Partnership is Angeles Realty Corporation, a California
corporation (hereinafter referred to as the "General Partner" or "ARC").
The Partnership, through its public offering of Limited Partnership
Units, sold 20,000 units aggregating $20,000,000. The General Partner
contributed capital in the amount of $1,000 for a 1% interest in the
Partnership. The Partnership was formed for the purpose of acquiring fee
interests in various types of real property. The Partnership presently owns
five investment properties. The General Partner of the Partnership intends to
maximize the operating results and, ultimately, the net realizable value of
each of the Partnership's properties in order to achieve the best possible
return for the investors. Such results may best be achieved through property
sales, refinancings, debt restructurings or relinquishment of the assets. The
Partnership intends to evaluate each of its holdings periodically to determine
the most appropriate strategy for each of the assets.
The Partnership has no employees. The General Partner is vested with
full authority as to the general management and supervision of the business
and affairs of the Partnership. Limited Partners have no right to participate
in the management or conduct of such business and affairs. Insignia
Management Group, L.P. provides day-to-day management services to the
Partnership's investment properties.
The business in which the Partnership is engaged is highly competitive,
and the Partnership is not a significant factor in its industry. Each of its
apartment properties is located in or near a major urban area and,
accordingly, competes for rentals not only with similar apartment properties
in its immediate area but with hundreds of similar apartment properties
throughout the urban area. Such competition is primarily on the basis of
location, rents, services and amenities. In addition, the Partnership
competes with significant numbers of individuals and organizations (including
similar partnerships, real estate investment trusts and financial
institutions) with respect to the sale of improved real properties, primarily
on the basis of the prices and terms of such transactions.
Item 2. Description of Properties:
The following table sets forth the Registrant's investments in
properties:
<TABLE>
<CAPTION>
Date of
Property Purchase Type of Ownership Use
<S> <C> <C> <C>
The Pines of Northwest
Crossing Apartments 05/30/80 Fee ownership, subject to Apartment -
Houston, Texas first and second mortgages 412 units
Panorama Terrace Apartments 06/30/80 Fee ownership, subject to Apartment -
Birmingham, Alabama first and second mortgages 227 units
Forest River Apartments 12/29/80 Fee ownership, subject to Apartment -
Gadsden, Alabama first and second mortgages 248 units
Village Green Apartments 12/31/80 Fee ownership, subject to Apartment -
Montgomery, Alabama a first mortgage 336 units
The Greens Apartments 12/31/80 Fee ownership, subject to Apartment -
San Antonio, Texas first and second mortgages 217 units
</TABLE>
Schedule of Properties:
<TABLE>
<CAPTION>
Gross
Carrying Accumulated Federal
Property Value Depreciation Rate Method Tax Basis
<S> <C> <C> <C> <C> <C>
The Pines of Northwest
Crossing Apartments $10,617,396 $ 5,416,934 5-25 yrs (1) $ 5,187,719
Panorama Terrace Apartments 7,840,998 4,637,553 5-25 yrs (1) 3,901,803
Forest River Apartments 4,798,044 2,956,824 5-25 yrs (1) 1,992,577
Village Green Apartments 7,583,268 4,582,617 5-25 yrs (1) 3,426,112
The Greens Apartments 4,151,730 1,584,804 5-19 yrs (1) 2,426,379
$34,991,436 $19,178,732 $16,934,590
<FN>
(1) Straight-line accelerated cost recovery method used.
</TABLE>
See "Note A" of the financial statements included in "Item 7" for a
description of the Partnership's depreciation policy.
Schedule of Mortgages:
<TABLE>
<CAPTION>
Principal Principal
Balance At Balance
December 31, Interest Period Maturity Due At
Property 1995 Rate Amortized Date Maturity
<S> <C> <C> <C> <C> <C>
The Pines of Northwest
Crossing Apartments
1st mortgage $4,934,346 7.83% (2) 10/15/03 $ 4,338,280
2nd mortgage 156,060 7.83% None 10/15/03 156,060
Panorama Terrace Apartments
1st mortgage 3,888,161 10.13% (3) 08/10/02 3,590,320
2nd mortgage 255,694 11.00% (1) 11/01/03 255,694
Forest River Apartments
1st mortgage 3,337,947 7.83% (2) 10/15/03 2,934,756
2nd mortgage 105,570 7.83% None 10/15/03 105,570
Village Green Apartments
1st mortgage 3,686,045 9.875% (4) 06/01/97 3,541,972
The Greens Apartments
1st mortgage 2,902,567 7.83% (2) 10/15/03 2,551,993
2nd mortgage 91,800 7.83% None 10/15/03 91,800
19,358,190 $17,566,445
Less unamortized
discounts (192,713)
$19,165,477
<FN>
(1) Loan provided by Angeles Mortgage Investment Trust (see "Note D").
Payments are interest only.
(2) The principal balance is being amortized over 344 months with a
balloon payment due October 15, 2003.
(3) The principal balance is being amortized over 360 months with a
balloon payment due August 10, 2002.
(4) The principal balance is being amortized over 240 months with a
balloon payment due June 1, 1997.
</TABLE>
Schedule of Rental Rates and Occupancy:
Average annual rental rate and occupancy for 1995 and 1994 for each
property:
<TABLE>
<CAPTION>
Average Annual Average Annual
Rental Rates Occupancy
Property 1995 1994 1995 1994
<S> <C> <C> <C> <C>
The Pines of Northwest
Crossing Apartments $5,010 $4,874 89% (1) 92%
Panorama Terrace Apartments 6,685 6,311 97% 95%
Forest River Apartments 4,105 3,959 96% 95%
Village Green Apartments 4,839 4,606 95% 97%
The Greens Apartments 5,391 5,075 90% (2) 90%
<FN>
(1) Low occupancy at this property may be attributed to residents vacating
in order to purchase homes as a result of the attractive interest rates.
(2) Low occupancy at this property may be attributed to the aged interiors
of the property making it a less-appealing property than its
competition.
</TABLE>
As noted under "Item 1. Description of Business", the real estate industry
is highly competitive. All of the properties of the Partnership are subject
to competition from other residential apartment complexes in the area. The
General Partner believes that all of the properties are adequately insured.
The multi-family residential properties' lease terms are for one year or less.
No residential tenant leases 10% or more of the available rental space.
Real estate taxes and rates in 1995 for each property were:
1995 1995
Billing Rate
The Pines of Northwest Crossing Apartments $173,258 3.04
Panorama Terrace Apartments 80,779* 6.26
Forest River Apartments 46,403* 4.90
Village Green Apartments 55,388* 3.45
The Greens Apartments 82,814 2.72
*Due to this property having a tax year different than its fiscal
year, tax billing does not equal tax expense.
Item 3. Legal Proceedings
The Partnership filed a Proof of Claim in the bankruptcy proceeding of
Angeles Corporation ("Angeles") concerning the Partnership's previous
indebtedness to Angeles Acceptance Pool, L.P. ("AAP"). The Proof of Claim
alleges that, instead of causing the Partnership to pay AAP on account of such
debt, Angeles, either itself or through an affiliate, caused the Partnership
to make payment to another Angeles affiliate. To the extent that such action
results in the Partnership not receiving credit for the payments so made, the
Partnership would have been damaged in an amount equal to the misappropriated
payments. On August 9, 1995, AAP acknowledged constructive receipt of such
payment and, therefore, the General Partner withdrew the Partnership's claim.
The Partnership is unaware of any pending or outstanding litigation that
is not of a routine nature. The General Partner believes that all such
pending or outstanding litigation will be resolved without a material adverse
effect upon the business, financial condition, or operations of the
Partnership.
Item 4. Submission of Matters to a Vote of Security Holders
The unit holders of the Partnership did not vote on any matter during
the fourth quarter of 1995.
PART II
Item 5. Market for the Partnership's Common Equity and Related Security
Holder Matters
The Partnership, a publicly-held limited partnership, sold 20,000
Limited Partnership Units during its offering period through September 12,
1979, and currently has 2,011 Limited Partners of record and 19,975 units
outstanding. (See "Note F" of financial statements for additional
information). There is no intention to sell additional Limited Partnership
Units nor is there an established market for these units. During 1994, the
number of Limited Partnership Units decreased by 25 units due to limited
partners abandoning their units. In abandoning his or her Limited Partnership
Units, a limited partner relinquishes all right, title and interest in the
Partnership as of the date of abandonment. No units were abandoned in 1995.
The Partnership has discontinued making cash distributions from
operations until and unless the financial condition of the Partnership and
other relevant factors warrant resumption of distributions.
Item 6. Management's Discussion and Analysis or Plan of Operation
This item should be read in conjunction with the consolidated financial
statements and other items contained elsewhere in this report.
Results of Operations
The Partnership's net loss as shown in the financial statements for the
year ended December 31, 1995, was $707,599 versus a net loss of $625,389 for
the year ended December 31, 1994. Rental income increased in 1995 due to
increases in rental rates at all of the properties. However, this increase in
revenue was offset by increases in operating and depreciation expense.
Operating expenses increased due to increases in rental concessions and an
increase in the reimbursement to an affiliate to the General Partner for the
personnel costs of property staff. Rental concessions increased in an attempt
to increase occupancy at the Partnership's investment properties.
Depreciation expense increased due to the depreciation of the fixed asset
additions which were placed in service in 1995 and 1994. In 1995, the
Partnership recognized a loss on disposal of property due to roof replacements
at Forest River Apartments and Panorama Terrace Apartments. The loss was due
to the write-off of roofs that were not yet fully depreciated. During 1994,
the Partnership recognized a gain on disposal of property due to the excess of
insurance proceeds received over the undepreciated cost of a roof at the
Greens Apartments, which was replaced due to hail damage.
As part of the ongoing business plan of the Partnership, the General
Partner monitors the rental market environment of each of its investment
properties to assess the feasibility of increasing rents, maintaining or
increasing occupancy levels and protecting the Partnership from increases in
expenses. As part of this plan, the General Partner attempts to protect the
Partnership from the burden of inflation-related increases in expenses by
increasing rents and maintaining a high overall occupancy level. However, due
to changing market conditions, which can result in the use of rental
concessions and rental reductions to offset softening market conditions, there
is no guarantee that the General Partner will be able to sustain such a plan.
Capital Resources and Liquidity
At December 31, 1995, the Partnership had unrestricted cash of $451,460
versus $305,551 at December 31, 1994. Net cash provided by operating
activities increased primarily as a result of an increase in the receipt of
cash from escrows for taxes and insurance, partially offset by a decrease in
accrued taxes due to the timing of property tax payments at the properties.
Net cash used in investing activities increased in 1995, as compared to 1994,
due to a reduction in funds received from restricted escrows. This decrease
was partially offset by a decrease in property improvements and replacements
and a decrease in deposits to restricted escrows. Net cash used in financing
activities decreased in 1995, as compared to 1994, due to the payment of loan
costs in 1994 relating to the refinancing of three loans in late 1993 (see
"Note A"). No such costs were incurred in 1995. For the year ended December
31, 1995, the Partnership had an increase in cash and cash equivalents of
$145,909 as compared to an increase of $32,797 for the year ended December 31,
1994.
The Partnership's primary source of cash is from the operations of its
properties and from financing placed on such properties. Cash for these
sources is utilized for property operations, capital improvements, and/or
repayment of debt. The sufficiency of existing liquid assets to meet future
liquidity and capital expenditure requirements is directly related to the
level of capital expenditures required at the various properties to adequately
maintain the physical assets and other operating needs of the Partnership.
Such assets are currently thought to be sufficient for any near-term needs of
the Partnership. The mortgage indebtedness of $19,165,477, net of discount,
is amortized over varying periods with required balloon payments of
$17,566,445 from June 1997 to October 2003, at which time the properties will
either be refinanced or sold. Future cash distributions will depend on the
levels of cash generated from operations, property sales and the availability
of cash reserves. No cash distributions were paid in 1995 or 1994.
Item 7. Financial Statements
ANGELES PARTNERS IX
LIST OF FINANCIAL STATEMENTS
Report of Independent Auditors
Balance Sheet - December 31, 1995
Statements of Operations - Years ended December 31, 1995 and 1994
Statements of Changes in Partners' Deficit - Years ended December 31,
1995 and 1994
Statements of Cash Flows - Years ended December 31, 1995 and 1994
Notes to Financial Statements
Report of Ernst & Young LLP, Independent Auditors
The Partners
Angeles Partners IX
We have audited the accompanying balance sheet of Angeles Partners IX as of
December 31, 1995, and the related statements of operations, changes in
partners' deficit and cash flows for each of the two years in the period ended
December 31, 1995. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by the Partnership's management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Angeles Partners IX as of
December 31, 1995, and the results of its operations and its cash flows for
each of the two years in the period ended December 31, 1995, in conformity
with generally accepted accounting principles.
/S/ ERNST & YOUNG LLP
Greenville, South Carolina
February 27, 1996
ANGELES PARTNERS IX
BALANCE SHEET
December 31, 1995
Assets
Cash and cash equivalents:
Unrestricted $ 451,460
Restricted--tenant security deposits 172,852
Accounts receivable 22,774
Escrows for taxes and insurance 243,212
Restricted escrows 465,058
Other assets 605,659
Investment properties (Notes B and E):
Land $ 3,082,586
Buildings and related personal property 31,908,850
34,991,436
Less accumulated depreciation (19,178,732) 15,812,704
$17,773,719
Liabilities and Partners' Deficit
Liabilities
Accounts payable $ 211,768
Tenant security deposits 173,747
Accrued taxes 238,906
Other liabilities 252,257
Mortgage notes payable (Notes B and E) 19,165,477
Partners' Deficit
General partner $ (197,717)
Limited partners (19,975 units issued
and outstanding) (2,070,719) (2,268,436)
$17,773,719
See Accompanying Notes to Financial Statements
ANGELES PARTNERS IX
STATEMENTS OF OPERATIONS
Years Ended December 31,
1995 1994
Revenues:
Rental income $ 6,796,282 $ 6,562,580
Other income 370,788 357,140
7,167,070 6,919,720
Expenses:
Operating 2,353,432 2,215,594
General and administrative 202,545 166,684
Property management fees (Note D) 356,418 344,222
Maintenance 1,099,275 1,157,407
Depreciation 1,576,345 1,421,295
Interest 1,842,520 1,836,534
Property taxes 442,156 413,181
7,872,691 7,554,917
Loss before (loss) gain on disposal of
property (705,621) (635,197)
(Loss) gain on disposal of property, net
of insurance proceeds (1,978) 9,808
Net loss $ (707,599) $ (625,389)
Net loss allocated to
general partner (1%) $ (7,076) $ (6,254)
Net loss allocated to
limited partners (99%) (700,523) (619,135)
Net loss $ (707,599) $ (625,389)
Net loss per limited partnership unit $ (35.07) $ (30.96)
See Accompanying Notes to Financial Statements
ANGELES PARTNERS IX
STATEMENT OF CHANGES IN PARTNERS' DEFICIT
<TABLE>
<CAPTION>
Limited
Partnership General Limited
Units Partner Partners Total
<S> <C> <C> <C> <C>
Original capital contributions 20,000 $ 1,000 $20,000,000 $20,001,000
Partners' deficit at
December 31, 1993 20,000 $(184,387) $ (751,061) $ (935,448)
Abandonment of partnership
units (Note F) (25) -- -- --
Net loss for the year ended
December 31, 1994 -- (6,254) (619,135) (625,389)
Partners' deficit at
December 31, 1994 19,975 (190,641) (1,370,196) (1,560,837)
Net loss for the year ended
December 31, 1995 -- (7,076) (700,523) (707,599)
Partners' deficit
at December 31, 1995 19,975 $(197,717) $(2,070,719) $(2,268,436)
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
ANGELES PARTNERS IX
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Years Ended December 31,
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (707,599) $ (625,389)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation 1,576,345 1,421,295
Amortization of discounts and loan costs 141,352 133,663
Loss (gain) on disposal of property, net of
insurance proceeds 1,978 (9,808)
Change in accounts:
Restricted cash (2,488) (14,771)
Accounts receivable 11,305 38,260
Escrows for taxes and insurance 104,312 (168,436)
Other assets (6,500) 6,041
Accounts payable 35,302 14,552
Tenant security deposit liabilities 5,806 (640)
Accrued taxes (28,256) 155,030
Other liabilities (23,414) (6,734)
Net cash provided by operating
activities 1,108,143 943,063
Cash flows from investing activities:
Property improvements and replacements (1,055,526) (1,245,984)
Deposits to restricted escrows (40,202) (163,835)
Receipts from restricted escrows 370,676 725,913
Insurance proceeds on casualty -- 75,948
Net cash used in investing
activities (725,052) (607,958)
Cash flows from financing activities:
Payments on mortgage notes payable (237,182) (217,298)
Payment of loan costs -- (85,010)
Net cash used in financing
activities (237,182) (302,308)
Net increase in cash and cash equivalents 145,909 32,797
Cash and cash equivalents at beginning of year 305,551 272,754
Cash and cash equivalents at end of year $ 451,460 $ 305,551
Supplemental disclosure of cash flow
Cash paid for interest $ 1,699,975 $ 1,719,860
Property improvements and replacements included
in accounts payable $ -- $ 199,646
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
ANGELES PARTNERS IX
(A Limited Partnership)
Notes to Financial Statements
December 31, 1995
Note A - Organization and Significant Accounting Policies
Organization: Angeles Partners IX (the "Partnership or "Registrant") is a
California limited partnership organized on September 12, 1979, to acquire and
operate residential properties. The Partnership's Managing General Partner is
Angeles Realty Corporation ("ARC"), an affiliate of Insignia Financial Group,
Inc. As of December 31, 1995, the Partnership operates five residential
properties located in or near major urban areas in the United States.
Principles of Consolidation: The financial statements include all of the
accounts of the Partnership and its majority owned Partnerships. All
significant interpartnership balances have been eliminated. Minority interest
is immaterial and not shown separately in the financial statements.
Allocations and Distributions to Partners: Net income and losses (excluding
these arising from the occurrence of sales or dispositions) of the Partnership
will be allocated 1% to the General Partner and 99% to the Limited Partners on
an annual basis.
Except as discussed below, the Partnership will allocate all distributions 1%
to the General Partner and 99% to the Limited Partners.
Upon the sale or other disposition, or refinancing, of any asset of the
Partnership and in connection with the dissolution of the Partnership, the
Distributable Net Proceeds, if any, thereof which the General Partner
determines are not required for support of the operations of the Partnership
will be distributed to the General Partner and the Limited Partners in
proportion to their interests in the Partnership until all Limited Partners
have received distributions from the Partnership equal to the amount of their
original contributions to the Partnership and a cumulative return of 10% per
annum (simple interest) on the Limited Partners' adjusted capital investment,
as defined in the Agreement. Thereafter, 14% of such proceeds will be
distributed to the General Partner and the remaining 86% of such proceeds will
be distributed 1% to the General Partner and 99% to the Limited Partners.
Depreciation: Depreciation is computed using the accelerated and the
straight-line methods over the estimated lives of the investment properties
and related personal property. For federal income tax purposes, the
accelerated cost recovery method is used (1) for real property over 18 years
for additions after March 15, 1984, and before May 9, 1985, and 19 years for
additions after May 8, 1985, and before January 1, 1987, and (2) for personal
property over 5 years for additions prior to January 1, 1987. As a result of
the Tax Reform Act of 1986, for additions after December 31, 1986, the
alternative depreciation system is used for depreciation of (1) real property
additions over 40 years, and (2) personal property additions over 6-20 years.
Note A - Organization and Significant Accounting Policies (continued)
Cash and Cash Equivalents: The Partnership considers all highly liquid
investments with a maturity when purchased of three months or less to be cash
equivalents. The carrying amount reported in the balance sheet approximates
its fair value. At certain times, the amount of cash deposited at a bank may
exceed the limit on insured deposits.
Restricted Cash--Tenant Security Deposits: The Partnership requires security
deposits from all lessees for the duration of the lease. Deposits are
refunded when the tenant vacates the apartment if there has been no damage to
the unit.
Loan Costs: Loan costs of $942,841 are included in "Other assets" in the
accompanying balance sheet and are being amortized on a straight-line basis
over the life of the loans. At December 31, 1995, accumulated amortization is
$360,938.
Restricted Escrows:
Capital Improvement Reserves - At the time of the refinancing of
Forest River Apartments, The Greens Apartments, and The Pines of Northwest
Crossing Apartments mortgage notes payable in 1993, $997,294 of the proceeds
were designated for "capital improvement escrows" for certain capital
improvements. At December 31, 1995, the balance remaining in the escrow was
$22,867, which includes interest earned on these funds. Upon completion of
the scheduled property improvements, any excess will be returned to the
properties for property operations.
Reserve Account - In addition to the Capital Improvement
Reserves, general Reserve Accounts of $283,426 were established with the
refinancing proceeds for the refinanced properties. These funds were
established to cover necessary repairs and replacements of existing
improvements, debt service, out-of-pocket expenses incurred for ordinary and
necessary administrative tasks, and payment of real property taxes and
insurance premiums. The Partnership is required to deposit net operating
income (as defined in the mortgage note) from the refinanced property to the
reserve account until the reserve account equals $400 per apartment unit, or
$350,800 in total. At December 31, 1995, the balance was $299,657.
Replacement Reserve Escrow - In addition to the above escrows,
Village Green Apartments maintains a replacement reserve escrow to fund
replacement, refurbishment or repair of improvements to the property pursuant
to the mortgage note documents. The property is required to deposit $4,200
per month until the escrow balance reaches $126,000. As of December 31 1995,
the balance in the escrow is $136,736, which includes interest earned on these
funds.
Note A - Organization and Significant Accounting Policies (continued)
Leases: The Partnership generally leases apartment units for twelve-month
terms or less.
Fair Value: In 1995, the Partnership implemented Statement of Financial
Accounting Standards No. 107, "Disclosure about Fair Value of Financial
Instruments," which requires disclosure of fair value information about
financial instruments for which it is practicable to estimate that value. The
carrying amount of the Partnership's cash and cash equivalents approximates
fair value due to short-term maturities. The Partnership estimates the fair
value of its fixed rate mortgage by discounted cash flow analysis, based on
estimated borrowing rates currently available to the Partnership ("Note B").
Use of Estimates: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results could differ from those estimates.
Investment Properties: Prior to the fourth quarter of 1995, investment
properties were carried at the lower of cost or estimated fair value, which
was determined using the higher of the property's non-recourse debt amount,
when applicable, or the net operating income of the investment property
capitalized at a rate deemed reasonable for the type of property. During the
fourth quarter of 1995 the Partnership adopted FASB Statement No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets
to Be Disposed Of", which requires impairment losses to be recorded on long-
lived assets used in operations when indicators of impairment are present and
the undiscounted cash flows estimated to be generated by those assets are less
than the assets' carrying amount. The impairment loss is measured by
comparing the fair value of the asset to its carrying amount. The effect of
adoption was not material.
Advertising Costs: Advertising costs of $141,681 and $135,596, for the year
ended December 31, 1995 and 1994, respectively, are charged to expense as they
are incurred and are included in operating expenses.
Reclassifications: Certain reclassifications have been made to the 1994
balances to conform to the 1995 presentation.
Note B - Mortgage Notes Payable
<TABLE>
<CAPTION>
Principal Monthly Principal
Balance At Payment Stated Balance
December 31, Including Interest Maturity Due At
Property 1995 Interest Rate Date Maturity
<S> <C> <C> <C> <C> <C>
The Pines of Northwest
Crossing Apartments
1st mortgage $ 4,934,346 $ 36,877 7.83% 10/15/03 $ 4,338,280
2nd mortgage 156,060 1,018 7.83% 10/15/03 156,060
Panorama Terrace Apartments
1st mortgage 3,888,161 35,473 10.13% 08/10/02 3,590,320
2nd mortgage(1) 255,694 2,344 11.00% 11/01/03 255,694
Forest River Apartments
1st mortgage 3,337,947 24,946 7.83% 10/15/03 2,934,756
2nd mortgage 105,570 689 7.83% 10/15/03 105,570
Village Green Apartments
1st mortgage 3,686,045 37,792 9.875% 06/01/97 3,541,972
The Greens Apartments
1st mortgage 2,902,567 21,692 7.83% 10/15/03 2,551,993
2nd mortgage 91,800 599 7.83% 10/15/03 91,800
19,358,190 $161,430 $17,566,445
Less unamortized
discounts (2) (192,713)
$19,165,477
<FN>
(1) Loan provided by Angeles Mortgage Investment Trust (see "Note D").
(2) Discounts of $192,713 represent $85,094 relating to The Pines of
Northwest Crossing Apartments, $57,564 relating to Forest River
Apartments, and $50,055 relating to The Greens Apartments.
</TABLE>
The estimated fair value of the Partnership's debt approximates its carrying
amount.
Scheduled principal payments of mortgage notes payable subsequent to December
31, 1995, are as follows:
1996 $ 259,057
1997 3,772,022
1998 195,152
1999 212,015
2000 230,356
Thereafter 14,689,588
$19,358,190
Note C - Income Taxes
Taxable income or loss of the Partnership is reported in the income tax
returns of its partners. Accordingly, no provision for income taxes is made
in the financial statements of the Partnership.
Differences between the net loss as reported and Federal taxable loss result
primarily from (1) amortization of mortgage discounts, (2) depreciation over
different methods and lives and on differing cost bases of apartment
properties, and (3) change in rental income received in advance.
The following is a reconciliation of reported net loss and Federal taxable
loss:
1995 1994
Net loss as reported $(707,599) $(625,389)
Add (deduct):
Depreciation differences 612,343 482,406
Unearned income (4,795) 14,938
Discounts on mortgage notes (4,796) (5,884)
Accruals (26,400) (10,600)
Prepaid Expenses -- 6,041
Other 2,494 (7,351)
Federal taxable loss $(128,753) $(145,839)
Federal taxable loss per
limited partnership unit $ (6.38) $ (7.23)
The following is a reconciliation at December 31, 1995, between the
Partnership's reported amounts and Federal tax basis of net assets and
liabilities:
Net liabilities as reported $(2,268,436)
Land and buildings 5,614,491
Accumulated depreciation (4,492,605)
Syndication and distribution costs 2,036,251
Unearned income 75,242
Accrued audit 18,600
Other (8,543)
Net assets - Federal tax basis $ 975,000
Note D - Transactions with Affiliated Parties
The Partnership has no employees and is dependent on the General Partner and
its affiliates for the management and administration of all Partnership
activities. The Partnership Agreement provides for payments to affiliates for
services and as reimbursement of certain expenses incurred by affiliates on
behalf of the Partnership.
The following amounts were paid to the General Partner and affiliates in 1995
and 1994:
1995 1994
Property management fees $356,418 $344,222
Reimbursement of services
of affiliates 143,223 89,998
The Partnership insures its properties under a master policy through an agency
and insurer unaffiliated with the General Partner. An affiliate of the
General Partner acquired, in the acquisition of a business, certain financial
obligations from an insurance agency which were later acquired by the agent
who placed the current year's master policy. The current agent assumed the
financial obligations to the affiliate of the General Partner, who receives
payments on these obligations from the agent. The amount of the Partnership's
insurance premiums accruing to the benefit of the affiliate of the General
Partner by virtue of the agent's obligations is not significant.
Angeles Mortgage Investment Trust ("AMIT"), a real estate investment trust,
has provided secondary financing to the Partnership secured by the
Partnership's investment property known as Panorama Terrace Apartments. Total
interest expense paid on this note was $28,126 for each of the years ended
December 31, 1995 and 1994.
MAE GP Corporation ("MAE GP"), an affiliate of the General Partner, owns
1,675,113 Class B Shares of AMIT. MAE GP has the option to convert these
Class B Shares, in whole or in part, into Class A Shares on the basis of 1
Class A Share for every 49 Class B Shares. These Class B Shares entitle MAE
GP to receive 1.2% of the distributions of net cash distributed by AMIT.
These Class B Shares also entitle MAE GP to vote on the same basis as Class A
Shares which allows MAE GP to vote approximately 37% of the total shares
(unless and until converted to Class A Shares at which time the percentage of
the vote controlled represented by the shares held by MAE GP would approximate
1.2% of the vote). Between the date of acquisition of these shares (November
24, 1992) and March 31, 1995, MAE GP declined to vote these shares. Since
that date, MAE GP voted its shares at 1995 the annual meeting in connection
with the election of trustees and other matters. MAE GP has not exerted, and
continues to decline to exert, any management control over or participate in
the management of AMIT. However, MAE GP may choose to vote these shares as it
deems appropriate in the future. In addition, Liquidity Assistance, LLC,
("LAC"), an affiliate of the General Partner and an affiliate of Insignia
Financial Group, Inc., which provides property management and partnership
administration services to the Partnership, owns 63,200 Class A Shares of
AMIT. These Class A Shares entitle LAC to vote approximately 1.5% of the
total shares.
Note D - Transactions with Affiliated Parties (continued)
As part of a settlement of certain disputes with AMIT, MAE GP granted to AMIT
an option to acquire the Class B shares. This option can be exercised at the
end of 10 years or when all loans made by AMIT to partnerships affiliated with
MAE GP as of November 9, 1994, (which is the date of execution of a definitive
Settlement Agreement) have been paid in full, but in no event prior to
November 9, 1997. AMIT delivered to MAE GP cash in the sum of $250,000 at
closing, which occurred on April 14, 1995, as payment for the option. Upon
exercise of the option, AMIT would remit to MAE GP an additional $94,000.
Simultaneously with the execution of the option, MAE GP executed an
irrevocable proxy in favor of AMIT the result of which is MAE GP will be able
to vote the Class B Shares on all matters except those involving transactions
between AMIT and MAE GP affiliated borrowers or the election of any MAE GP
affiliate as an officer or trustee of AMIT. On these matters, MAE GP granted
to the AMIT trustees, in their capacity as trustees of AMIT, proxies with
regard to the Class B Shares instructing such trustees to vote said Class B
shares in accordance with the vote of the majority of the Class A Shares
voting to be determined without consideration of the votes of "Excess Class A
Shares" as defined in section 6.13 of the Declaration of Trust of AMIT.
Note E - Investment Properties and Accumulated Depreciation
<TABLE>
<CAPTION>
Initial Cost
To Partnership
Cost
Buildings Capitalized
and Related (Removed)
Personal Subsequent to
Description Encumbrances Land Property Acquisition
<S> <C> <C> <C> <C>
The Pines of Northwest
Crossing Apartments $ 5,090,406 $1,640,758 $ 7,399,242 $1,577,396
Panorama Terrace Apartments 4,143,855 473,498 6,261,502 1,105,998
Forest River Apartments 3,443,517 122,894 4,189,106 486,044
Village Green Apartments 3,686,045 408,895 5,786,105 1,388,268
The Greens Apartments 2,994,367 436,541 3,933,459 (218,270)
Totals $19,358,190 $3,082,586 $27,569,414 $4,339,436
</TABLE>
Note E - Investment Properties and Accumulated Depreciation (continued)
<TABLE>
<CAPTION>
Gross Amount at Which Carried
At December 31, 1995
Buildings
And Related
Personal Accumulated Date Depreciable
Description Land Property Total Depreciation Acquired Life-Years
<S> <C> <C> <C> <C> <C> <C>
The Pines of Northwest
Crossing Apartments $1,640,758 $ 8,976,638 $10,617,396 $ 5,416,934 05/30/80 5-25
Panorama Terrace Apartments 473,498 7,367,500 7,840,998 4,637,553 06/30/80 5-25
Forest River Apartments 122,894 4,675,150 4,798,044 2,956,824 12/29/80 5-25
Village Green Apartments 408,895 7,174,373 7,583,268 4,582,617 12/31/80 5-25
The Greens Apartments 436,541 3,715,189 4,151,730 1,584,804 12/31/80 5-19
Totals $3,082,586 $31,908,850 $34,991,436 $19,178,732
</TABLE>
Reconciliation of Investment Properties and Accumulated Depreciation :
Years Ended December 31,
1995 1994
Investment Property
Balance at beginning of year $34,151,066 $32,995,187
Property improvements 855,880 1,445,630
Write-offs due to replacements (15,510) (289,751)
Balance at end of year $34,991,436 $34,151,066
Accumulated Depreciation
Balance at beginning of year $17,615,919 $16,418,235
Additions charged to expense 1,576,345 1,421,295
Write-offs due to replacements (13,532) (223,611)
Balance at end of year $19,178,732 $17,615,919
The aggregate cost of the investment property for Federal income tax purposes
at December 31, 1995 and 1994, is $40,605,927 and $39,752,092. The
accumulated depreciation taken for Federal income tax purposes at December 31,
1995 and 1994, is $23,671,337 and $22,707,845.
Note F - Abandoned Units
During 1994, the number of Partnership units decreased by 25 units due to
limited partners abandoning their units. In abandoning his or her Partnership
units, a limited partner relinquishes all right, title and interest in the
Partnership as of the date of abandonment. However, during the year of
abandonment, the limited partner is allocated his or her share of income or
loss for that year. The loss per limited partnership unit in the accompanying
statements of operations is calculated based on the number of units
outstanding at the beginning of the year. There were no abandonments reported
during 1995.
Item 8. Changes in and Disagreements with Accountant on Accounting and
Financial Disclosures
There were no disagreements with Ernst & Young LLP regarding the 1995 or
1994 audits of the Partnership's financial statements.
PART III
Item 9. Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a) of the Exchange Act
The Registrant has no officers or directors. The name of the directors
and executive officers of Angeles Realty Corporation ("ARC"), the
Partnership's General Partner as of December 31, 1995, their ages and the
nature of all positions with ARC presently held by them are as follows:
Name Age Position
Carroll D. Vinson 55 President
Robert D. Long, Jr. 28 Controller and
Principal Accounting
Officer
William H. Jarrard, Jr. 49 Vice President
John K. Lines 36 Secretary
Kelley M. Buechler 38 Assistant Secretary
Carroll D. Vinson has been President of ARC and Metropolitan Asset
Enhancement, L.P., and subsidiaries since August 1994. Prior to that, during
1993 to August 1994, Mr. Vinson was affiliated with Crisp, Hughes & Co.
(regional CPA firm) and engaged in various other investment and consulting
activities. Briefly, in early 1993, Mr. Vinson served as President and Chief
Executive Officer of Angeles Corporation, a real estate investment firm. From
1991 to 1993, Mr. Vinson was employed by Insignia in various capacities
including Managing Director-President during 1991. From 1986 to 1990, Mr.
Vinson was President and Director of U.S. Shelter Corporation, a real estate
services company, which sold substantially all of its assets to Insignia in
December 1990.
Robert D. Long, Jr. has been Controller and Principal Accounting Officer of
ARC and Metropolitan Asset Enhancement, L.P. subsidiaries since February 1994.
Prior to joining Metropolitan Asset Enhancement, L.P., and subsidiaries, he
was an auditor for the State of Tennessee and was associated with the account-
ing firm of Harshman Lewis and Associates. He is a graduate of the University
of Memphis.
William H. Jarrard, Jr. has been Vice President of ARC since August 1994 and
Managing Director - Partnership Administration of Insignia Financial Group,
Inc. ("Insignia") since 1991. During the five years prior to joining Insignia
in 1991, he served in a similar capacity for U.S. Shelter. He was previously
associated with the accounting firm, Ernst & Whinney, for eleven years. Mr.
Jarrard is a graduate of the University of South Carolina and a certified
public accountant.
John K. Lines has been Secretary of ARC since August 1994, General Counsel of
Insignia since June 1994, and General Counsel and Secretary since July 1994.
From May 1993 until June 1994, Mr. Lines was the Assistant General Counsel and
Vice President of Ocwen Financial Corporation in West Palm Beach, Florida.
From October 1991 until April 1993, Mr. Lines was a Senior Attorney with Banc
One Corporation in Columbus, Ohio. From May 1984 until October 1991, Mr.
Lines was employed as an Associate Attorney with Squire Sanders & Dempsey in
Columbus, Ohio.
Kelley M. Buechler is Assistant Secretary of ARC since January 1993 and
Assistant Secretary of Insignia since 1991. During the five years prior to
joining Insignia in 1991, she served in a similar capacity for U.S. Shelter.
Ms. Buechler is a graduate of the University of North Carolina.
Item 10. Executive Compensation
No direct form of compensation or remuneration was paid by the
Partnership to any officer or director of ARC. The Partnership has no plan,
nor does the Partnership presently propose a plan, which will result in any
remuneration being paid to any officer or director upon termination of
employment. However, fees and other payments have been made to the
Partnership's general partner and it's affiliates, as described in "Note D" of
the Financial Statements included under "Item 7", which is incorporated herein
by reference.
Item 11. Security Ownership of Certain Beneficial Owners and Management
As of December 31, 1995, no person owned of record more than 5% of
Limited Partnership Units of the Partnership nor was any person known by the
Partnership to own of record and beneficially, or beneficially only, more than
5% of such securities.
The Partnership knows of no contractual arrangements, the operation of
the terms of which may at a subsequent date result in a change in control of
the Partnership, except for: Article 12.1 of the Agreement, which provide
that upon a vote of the Limited Partners holding more than 50% of the then
outstanding Limited Partnership Units the General Partner may be expelled from
the Partnership upon 90 days written notice. In the event that a successor
general partner has been elected by Limited Partners holding more than 50% of
the then outstanding Limited Partnership Units and if said Limited Partners
elect to continue the business of the Partnership, the Partnership is required
to pay in cash to the expelled General Partner an amount equal to the accrued
and unpaid management fee described in Article 10 of the Agreement and to
purchase the General Partner's interest in the Partnership on the effective
date of the expulsion, which shall be an amount equal to the difference
between (i) the balance of the General Partner's capital account and (ii) the
fair market value of the share of Distributable Net Proceeds to which the
General Partner would be entitled. Such determination of the fair market
value of the share of Distributable Net Proceeds is defined in Article 12.2(b)
of the Agreement.
Item 12. Certain Relationships and Related Transactions
No transactions have occurred between the Partnership and any officer or
director of ARC.
During the year ended December 31, 1995, the transactions that occurred
between the Partnership and ARC and affiliates of ARC pursuant to the terms of
the Agreement are disclosed under "Note D" of the Partnership's Financial
Statements included under "Item 7", which is hereby incorporated by reference.
PART IV
Item 13. Exhibits and Reports on Form 8-K
(a) Exhibits: See Exhibit Index contained herein.
(b) No reports on Form 8-K were filed during the fourth quarter of
1995.
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
has caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
ANGELES PARTNERS IX
(A California Limited Partnership)
(Registrant)
By: Angeles Realty Corporation
By: /s/Carroll D. Vinson
Carroll D. Vinson
President
Date: March 27, 1996
In accordance with the Exchange Act, this report has been signed below by
the following persons on behalf of the Registrant and in the capacities on the
date indicated.
/s/Carroll D. Vinson President March 27, 1996
Carroll D. Vinson
/s/Robert D. Long, Jr. Controller and March 27, 1996
Robert D. Long, Jr. Principal
Accounting Officer
ANGELES PARTNERS IX
Exhibit Index
Exhibit Number Description of Exhibit
3.1 Amended Certificate and Agreement of the
Limited Partnership filed in Form S-11 dated
December 24, 1984 incorporated herein by
reference
10.1 Earnest Money Contract (Phase I and II) - the
Pines of Northwest Crossing Apartments filed
in Form 8K dated May 30, 1980 and incorporated
herein by reference
10.2 Purchase and Sale Agreement with Exhibits -
Panorama Terrace filed in Form 8K dated June
30, 1980 and incorporated herein by reference
10.3 Purchase and Sale Agreement with Exhibits -
Forest River Apartments filed in Form 8K dated
December 29, 1980 and incorporated herein by
reference
10.4 Purchase and Sale Agreement with Exhibits -
Village Green Apartments filed in Form 8K
dated December 31, 1980 and incorporated
herein by reference
10.5 Purchase and Sale Agreement with Exhibits -
The Greens Apartments filed in Form 8K dated
December 31, 1980 and incorporated herein by
reference
10.6 Promissory Note - Village Green Apartments
filed in Form 10K as Exhibit 10.8 dated March
24, 1989 and incorporated herein by reference
10.7 Promissory Note and deed of trust modification
and extension agreement - the Pines of
Northwest Crossing Apartments filed in the
1989 Form 10K as Exhibit 10.9 dated January
15, 1991 and incorporated herein by reference
10.8 Promissory Note and deed of trust modification
and reinstatement agreement - the Greens
Apartments filed in Form 10K as Exhibit 10.10
dated March 28, 1991 and incorporated herein
by reference
Exhibit Number Description of Exhibit
10.9 Stock Purchase Agreement dated November 24,
1992 showing the purchase of 100% of the
outstanding stock of Angeles Realty
Corporation by IAP GP Corporation, a
subsidiary of MAE GP Corporation, filed in
Form 8-K dated December 31, 1992, which is
incorporated herein by reference
10.10 (a) First Deeds of Trust and Security Agreements
dated September 30, 1993 between Houston
Pines, a California Limited Partnership and
Lexington Mortgage Company, a Virginia
Corporation, securing The Pines of Northwest
Crossing.*
(b) Second Deeds of Trust and Security Agreements
dated September 30, 1993 between Houston
Pines, a California Limited Partnership and
Lexington Mortgage Company, a Virginia
Corporation, securing The Pines of Northwest
Crossing.*
(c) First Assignments of Leases and Rents dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington
Mortgage Company, a Virginia Corporation,
securing The Pines of Northwest Crossing.*
(d) Second Assignment of Leases and Rents dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington
Mortgage Company, a Virginia Corporation,
securing The Pines of Northwest Crossing.*
(e) First Deeds of Trust Notes dated September 30,
1993 between Houston Pines, a California
Limited Partnership and Lexington Mortgage
Company, relating to The Pines of Northwest
Crossing.*
(f) Second Deeds of Trust Notes dated September
30, 1993 between Houston Pines, a California
Limited Partnership and Lexington Mortgage
Company, relating to The Pines of Northwest
Crossing.*
*Filed as Exhibits 10.10 (a) through (f),
respectively, in Form 10-KSB for the year
ended December 31, 1993 and incorporated
herein by reference.
Exhibit Number Description of Exhibit
10.11 (a) First Deeds of Trust and Security Agreements
dated September 30, 1993 between Houston
Pines, a California Limited Partnership and
Lexington Mortgage Company, a Virginia
Corporation, securing The Greens.**
(b) Second Deeds of Trust and Security Agreements
dated September 30, 1993 between Houston
Pines, a California Limited Partnership and
Lexington Mortgage Company, a Virginia
Corporation, securing The Greens.**
(c) First Assignments of Leases and Rents dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington
Mortgage Company, a Virginia Corporation,
securing The Greens.**
(d) Second Assignment of Leases and Rents dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington
Mortgage Company, a Virginia Corporation,
securing The Greens.**
(e) First Deeds of Trust Notes dated September 30,
1993 between Houston Pines, a California
Limited Partnership and Lexington Mortgage
Company, relating to The Greens.**
(f) Second Deeds of Trust Notes dated September
30, 1993 between Houston Pines, a California
Limited Partnership and Lexington Mortgage
Company, relating to The Greens.**
**Filed as Exhibits 10.11 (a) through (f),
respectively, in Form 10-KSB for the year
ended December 31, 1993 and incorporated
herein by reference.
10.12 (a) First Deeds of Trust and Security Agreements
dated September 30, 1993 between Houston
Pines, a California Limited Partnership and
Lexington Mortgage Company, a Virginia
Corporation, securing Forest River
Apartments.***
(b) Second Deeds of Trust and Security Agreements
dated September 30, 1993 between Houston
Pines, a California Limited Partnership and
Lexington Mortgage Company, a Virginia
Corporation, securing Forest River
Apartments.***
Exhibit Number Description of Exhibit
(c) First Assignments of Leases and Rents dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington
Mortgage Company, a Virginia Corporation,
securing Forest River Apartments.***
(d) Second Assignment of Leases and Rents dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington
Mortgage Company, a Virginia Corporation,
securing Forest River Apartments.***
(e) First Deeds of Trust Notes dated September 30,
1993 between Houston Pines, a California
Limited Partnership and Lexington Mortgage
Company, relating to Forest River
Apartments.***
(f) Second Deeds of Trust Notes dated September
30, 1993 between Houston Pines, a California
Limited Partnership and Lexington Mortgage
Company, relating to Forest River
Apartments.***
***Filed as Exhibits 10.12 (a) through (f),
respectively, in Form 10-KSB for the year
ended December 31, 1993 and incorporated
herein by reference.
16 Letter from the Registrant's former
independent accountant regarding its
concurrence with the statements made by the
Registrant is incorporated by reference to the
exhibit filed with Form 8-K dated September 1,
1993.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Angeles
Partners IX 1995 Year-End 10-KSB and is qualified in its entirety by reference
to such 10-KSB filing.
</LEGEND>
<CIK> 0000313499
<NAME> ANGELES PARTNERS IX
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 451,460
<SECURITIES> 0
<RECEIVABLES> 22,774
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 34,991,436
<DEPRECIATION> 19,178,732
<TOTAL-ASSETS> 17,773,719
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 19,165,477
0
0
<COMMON> 0
<OTHER-SE> (2,268,436)
<TOTAL-LIABILITY-AND-EQUITY> 17,773,719
<SALES> 0
<TOTAL-REVENUES> 7,167,070
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 7,872,691
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,842,520
<INCOME-PRETAX> (707,599)
<INCOME-TAX> 0
<INCOME-CONTINUING> (707,599)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (707,599)
<EPS-PRIMARY> (35.07)
<EPS-DILUTED> 0
<FN>
<F1>The Registrant has an unclassified balance sheet.
</FN>
</TABLE>
