SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934
(Amendment No. 1)
Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[X] Preliminary Proxy Statement [ ] Confidential, for Use of the
Commission Only (as permitted by
Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
CONSOLIDATED CAPITAL PROPERTIES III
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which
the filing fee is calculated and state how it was determined):
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
[ ] Fee paid previously with preliminary materials:
[ ] Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing by
registration statement number, or the form or schedule and the date
of its filing.
[ ] Amount previously paid:
[ ] Form, Schedule or Registration Statement no.:
[ ] Filing Party:
[ ] Date Filed:
CONSOLIDATED CAPITAL PROPERTIES III
1873 South Bellaire Street
Denver, Colorado 80222
October __, 1999
Dear Limited Partner:
We are writing to request your consent to an amendment (the
"Amendment") of the Agreement of Limited Partnership of Consolidated
Capital Properties III (the "Partnership") to (a) extend the term of the
Partnership from December 31, 2010 to a date in 2020 which is six months
and one day after the 20-year refinancing described herein will initially
be scheduled to mature, and (b) provide for early dissolution of the
Partnership upon repayment of all indebtedness secured by the Partnership's
real property (unless any new financing otherwise requires). Enclosed for
your consideration is a Consent Solicitation Statement, dated October __,
1999 (the "Solicitation Statement"), and a form of Consent of Limited
Partner (the "Consent Form") for indicating whether or not you wish to
grant your consent to the Amendment. The consent of limited partners who
own more than 50% of all outstanding limited partnership units is required
to approve the Amendment.
The Amendment will enable the Partnership to finance the
mortgage debt to be secured by the West Chase Village Apartments, with a
new 20-year loan. The financing is expected to result in lower interest
costs for the Partnership and a cash distribution to the unitholders, all
as more fully described in the enclosed Solicitation Statement.
ConCap Equities, Inc., the managing general partner of the
Partnership, recommends that you consent to the Amendment by completing,
dating and signing the enclosed Consent Form and returning it in the
enclosed pre-addressed, postage-paid envelope.
Your participation is important. Please note that this
solicitation will expire at 5:00 p.m., New York City time, on , 1999.
If you have any questions or require any assistance in
completing and returning the Consent Form, please contact our Solicitation
Agent, Corporate Investors Communications, Inc. by mail at P.O. Box 2065,
South Hackensack, New Jersey 07606-2065; by overnight courier service at
111 Commerce Road, Carlstadt, New Jersey 07072--Attention: Reorganization
Department; by fax at (202) ___-____; or by telephone at ( ) __-____.
Very truly yours,
CONSOLIDATED CAPITAL PROPERTIES III
By: CONCAP EQUITIES, INC.
Managing General Partner
CONSOLIDATED CAPITAL PROPERTIES III
1873 SOUTH BELLAIRE STREET
DENVER, COLORADO 80222
CONSENT SOLICITATION STATEMENT
This Consent Solicitation Statement is being furnished to limited
partners (the "Limited Partners") of record as of the close of business on
October __, 1999 (the "Record Date"), of Consolidated Capital Properties
III, a California limited partnership (the "Partnership"), in connection
with the solicitation of consents to an amendment (the "Amendment") of the
Partnership's Agreement of Limited Partnership to (a) extend the term of
the Partnership from December 31, 2010 to a date in 2020 which is six
months and one day after the 20-year refinancing described herein will
initially be scheduled to mature, and (b) provide for early dissolution of
the Partnership upon payment of all indebtedness secured by the
Partnership's real property (unless any new refinancing otherwise
requires). Currently, the Partnership's Agreement of Limited Partnership
provides for dissolution upon the sale of all or substantially all of the
Partnership's property. Therefore, with the Amendment, the Partnership will
dissolve upon the earlier of a date in 2020, upon repayment of all
indebtedness (unless a new indebtedness otherwise requires), or upon a sale
of all or substantially all of the Partnership's assets.
The Amendment will enable the Partnership to finance mortgage debt
secured by the West Chase Village Apartments with a 20-year loan (the
"Financing"). The Financing is expected to result in a cash distribution to
holders of units of limited partnership interest (the "Units").
This Consent Solicitation Statement is being solicited by ConCap
Equities, Inc. the managing general partner of the Partnership (the
"General Partner"), on behalf of the Partnership. This Consent Solicitation
Statement, and the accompanying form of Consent of Limited Partner (the
"Consent Form"), are first being mailed to Limited Partners on or about
October ___, 1999.
THE GENERAL PARTNER RECOMMENDS THAT LIMITED PARTNERS CONSENT TO THE
AMENDMENT.
THIS SOLICITATION OF CONSENTS WILL EXPIRE AT 5:00 P.M., NEW YORK
CITY TIME, ON ____________, 1999 (THE "EXPIRATION DATE").
SEE "RISK FACTORS" BEGINNING ON PAGE 2 OF THIS CONSENT SOLICITATION
STATEMENT FOR A DESCRIPTION OF RISK FACTORS THAT YOU SHOULD CONSIDER IN
CONNECTION WITH THE AMENDMENT, INCLUDING
THE FOLLOWING:
o Although the Partnership's Agreement of Limited Partnership
provides for termination in the year 2010, the prospectus
pursuant to which the Units were sold in 1983 indicated that
the properties owned by the Partnership might be sold within 3
to 7 years of their acquisition if conditions permitted. If the
Amendment is adopted, the properties may not be sold until
2020.
o The General Partner and its affiliates have substantial
conflicts of interest with respect to the Amendment.
Continuation of the Partnership beyond 2010 will result in the
General Partner and its affiliates continuing to receive
management fees from the Partnership. Such fees would not be
payable if the Partnership were liquidated earlier.
o The Financing will cause interest and principal payments to be
made in the future, thus, lowering income and funds available
for future distribution.
Questions and requests for assistance may be directed to the
Solicitation Agent, Corporate Investors Communications, Inc., by mail at
P.O. Box 2065, South Hackensack, New Jersey 07606-2065; by overnight
courier service at 111 Commerce Road, Carlstadt, New Jersey
07072--Attention: Reorganization Department; by fax at (202) ___-____ or by
telephone at ( ) ___-____.
RISK FACTORS
Before deciding whether or not to consent to the Amendment, you
should consider carefully the following risks:
Continuation of the Partnership; No Time Frame Regarding Sale of
Properties. The General Partner is proposing to continue to operate the
Partnership and not to attempt to liquidate it at the present time. Thus,
the Amendment and the Financing does not satisfy any expectation that a
Limited Partner would receive the return of his or her investment in the
Partnership through a sale of any property. It is not known when any
property owned by the Partnership may be sold. There may be no way to
liquidate your investment in the Partnership in the future until all
properties are sold. The Amendment could result in continuation of the
Partnership until 2020. The General Partner of the Partnership continually
considers whether a property should be sold or otherwise disposed of after
consideration of the relevant factors, including prevailing economic
conditions, availability of favorable financing and tax considerations,
with a view to achieving maximum capital appreciation for the Partnership.
At the current time the General Partner believes that a sale of any
property would not be advantageous given market conditions, the condition
of each property and tax considerations. In particular, the General Partner
considered the changes in the local rental market, the potential for
appreciation in the value of each property and the tax consequences to you
and your partners on a sale of a property. The General Partner cannot
predict when any property will be sold or otherwise disposed of.
Conflicts of Interest with Respect to the Solicitation. The General
Partner of the Partnership has fiduciary duties to operate and manage the
Partnership in the best interests of all partners. However, the General
Partner and its affiliates receive fees for managing the Partnership and
its property. Therefore, a conflict of interest exists between the General
Partner and its affiliates regarding continuing the Partnership and
receiving such fees, and the liquidation of the Partnership and the
termination of such fees.
Lower Future Earning and Funds Available for Distribution. Interest
and principal payments on the Financing will result in reduced future
income and reduced future funds available for distribution.
RECORD DATE; CONSENTS REQUIRED
The Partnership has fixed October __, 1999 as the Record Date for
determining limited partners entitled to notice of and to consent to the
Amendment. Only limited partners of record on the Record Date may execute
and deliver a Consent Form. Approval of the Amendment requires the
affirmative consent of Limited Partners who own more than 50% of the
Partnership's outstanding Units. As of the Record Date, there were 158,582
Units issued and outstanding. Accordingly, approval of the Amendment will
require the affirmative consent of Limited Partners who own at least 79,292
Units. The Amendment will become effective on the Expiration Date, provided
consents from Limited Partners owning at least 79,292 Units have been
received.
SOLICITATION OF CONSENTS
Consents will be solicited by mail, telephone, e-mail and in
person. Solicitations may be made by representatives of the General
Partner, none of whom will receive additional compensation for such
solicitations. The cost of preparing, assembling, printing and mailing this
Consent Solicitation Statement and the enclosed Consent Form will be borne
by the Partnership. The Partnership has retained Corporate Investors
Communications, Inc. to act as its Solicitation Agent in connection with
this consent solicitation. The fees and expenses of the Solicitation Agent
will be paid by the Partnership.
CONSENT PROCEDURES
LIMITED PARTNERS WHO DESIRE TO CONSENT TO THE AMENDMENT SHOULD DO
SO BY MARKING THE APPROPRIATE BOX ON THE CONSENT FORM INCLUDED HEREWITH,
AND SIGNING, DATING AND DELIVERING THE CONSENT FORM TO THE SOLICITATION
AGENT BY MAIL IN THE SELF-ADDRESSED, POSTAGE-PAID ENVELOPE ENCLOSED FOR
THAT PURPOSE, BY OVERNIGHT COURIER OR BY FACSIMILE AT THE ADDRESS OR
FACSIMILE NUMBER SET FORTH ABOVE AND ON THE CONSENT FORM, ALL IN ACCORDANCE
WITH THE INSTRUCTIONS CONTAINED HEREIN AND THEREIN.
All Consent Forms that are properly completed, signed and delivered
to the Solicitation Agent and not properly revoked (See "Revocation of
Instructions" below) prior to the Expiration Date, will be given effect in
accordance with the specifications thereof. IF A CONSENT FORM IS DELIVERED
AND NEITHER THE "CONSENTS," THE "WITHHOLDS CONSENT" NOR THE "ABSTAINS" BOX
IS MARKED, BUT THE CONSENT FORM IS OTHERWISE PROPERLY COMPLETED AND SIGNED,
THE LIMITED PARTNER WILL BE DEEMED TO HAVE CONSENTED TO THE AMENDMENT.
Consent Forms must be executed in exactly the same manner as the
name(s) in which ownership of the Units is registered. If the Units to
which a Consent Form relates are held by two or more joint holders, all
such holders should sign the Consent Form. If a Consent Form is signed by a
trustee, partner, executor, administrator, guardian, attorney-in-fact,
officer of a corporation or other person acting in a fiduciary, agency or
representative capacity, such person must so indicate when signing and
submit with the Consent Form evidence satisfactory to the Partnership of
authority to execute the Consent Form.
The execution and delivery of a Consent Form will not affect a
Limited Partner's right to sell or transfer the Units. All Consent Forms
received by the Solicitation Agent (and not properly revoked) prior to the
Expiration Date will be effective notwithstanding a record transfer of such
Units subsequent to the Record Date, unless the Limited Partner revokes
such Consent Form prior to 5:00 p.m., New York City time, on the Expiration
Date by following the procedures set forth under "Revocation of
Instructions" below.
All questions as to the validity, form and eligibility (including
time of receipt) regarding consent procedures will be determined by the
General Partner in its sole discretion, which determination will be
conclusive and binding. The Partnership reserves the right to reject any or
all Consent Forms that are not in proper form. The Partnership also
reserves the right to waive any defects, irregularities or conditions of
delivery as to particular Consent Forms. Unless waived, all such defects or
irregularities in connection with the deliveries of Consent Forms must be
cured within such time as the General Partner determines. Neither the
General Partner nor any of its affiliates or any other persons shall be
under any duty to give any notification of any such defects, irregularities
or waivers, nor shall any of them incur any liability for failure to give
such notification. Deliveries of Consent Forms will not be deemed to have
been made until any irregularities or defects therein have been cured or
waived. The interpretations of the terms and conditions of this
solicitation by the General Partner shall be conclusive and binding.
REVOCATION OF INSTRUCTIONS
Any Limited Partner who has delivered a Consent Form to the
Solicitation Agent may revoke the instructions set forth in such Consent
Form by delivering to the Solicitation Agent a written notice of revocation
prior to 5:00 p.m., New York City time, on the Expiration Date. In order to
be effective, a notice of revocation of the instructions set forth in a
Consent Form must (i) contain the name of the person who delivered the
Consent Form, (ii) be in the form of a subsequent Consent Form marked
either as "CONSENTS," "WITHHOLDS CONSENT" or "ABSTAINS," as the case may
be, or in a writing delivered to the Solicitation Agent stating that the
prior Consent Form is revoked, (iii) be signed by the Limited Partner in
the same manner as the original signature on the Consent Form, and (iv) be
received by the Solicitation Agent prior to 5:00 p.m. New York City time,
on the Expiration Date at one of its addresses or fax number set forth on
the Consent Form. A purported notice of revocation that lacks any of the
required information, is dispatched to an improper address or telephone
number or is not received in a timely manner will not be effective to
revoke the instructions set forth in a Consent Form previously given. A
revocation of the instructions set forth in a Consent Form can only be
accomplished in accordance with the foregoing procedures. NO LIMITED
PARTNER MAY REVOKE THE INSTRUCTIONS SET FORTH IN A CONSENT FORM AFTER 5:00
P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.
NO APPRAISAL RIGHTS
Limited Partners of the Partnership are not entitled to dissenters'
appraisal rights under California law or the Partnership's Agreement of
Limited Partnership in connection with the Amendment.
GENERAL PARTNER'S RECOMMENDATION
The General Partner recommends that Limited Partners consent to the
Amendment. The General Partner believes that the Amendment is in the best
interests of the Partnership and its Limited Partners. In making its
determination, the General Partner considered the terms of the proposed
Financing (see "The Financing" below) and alternatives to such Financing
(see "Alternatives Considered" below).
THE FINANCING
The Amendment will enable the Partnership to finance a mortgage
debt secured by the West Chase Village Apartments with a 20-year loan. The
Financing is expected to result in a cash distribution to Limited
Partners.
The loan expected to have an original principal amount of
approximately $1,150,000 will mature in September, 2019. The new loan is
expected to have a fixed interest rate equal to 1.79% plus the rate
applicable to a 10-year Treasury Note at the time the interest rate is
fixed. From July 1, 1999 to October __, 1999, the interest rate applicable
to 10-year Treasury Notes has ranged between 5.53% and ____% and on October
__, 1999 was ___%. The exact interest rate will be determined in the
future. The new loan would be non-recourse (with customary exceptions for
fraud, misappropriation of funds and environmental liability), and would be
fully amortized over the 20 year term. The new loan would have non funded
reserves for taxes, insurance and replacement reserves. Further, the new
loan could be prepaid in full until 90 days prior to the maturity date,
upon payment of a prepayment penalty. For the first 15 years of the loan,
the prepayment penalty would be calculated based on a formula that
calculates yield maintenance. Thereafter, the prepayment penalty would be
equal to 1% of the principal amount outstanding. As a condition to making
the new loan, the lender is requiring that the Partnership's Agreement of
Limited Partnership be amended to extend the term of the Partnership beyond
the proposed maturity date of the new loan. The proceeds from the new loan
would be used to pay other transaction fees and expenses associated with
the Financing (expected to be approximately $28,750) and to pay deferred
maintenance at the property (estimated to be approximately $12,500). The
remainder of the proceeds (estimated to be approximately $1,108,750) would
be distributed to the holders of Units pro rata, including Units held by
the General Partner and its affiliates.
ALTERNATIVES CONSIDERED
The General Partner also considered a sale of the property, but
believes that a sale of the property at the current time would not be
advantageous given market conditions, the condition of the property and the
tax consequences to limited partners. See "Investment Objectives and
Policies; Sale or Financing of Investments" below. The General Partner
recognized that the proposed Financing would not prohibit or unduly
restrict the Partnership's ability to sell the property in the future prior
to the expiration of the extended term of the Partnership.
INVESTMENT OBJECTIVES AND POLICIES; SALE OR FINANCING OF INVESTMENTS
In general, the General Partner regularly evaluates a sale of the
Partnership's properties by considering various factors, such as the
Partnership's financial position and real estate and capital markets
conditions. The General Partner monitors the properties' specific locale
and sub-market conditions (including stability of the surrounding
neighborhood) evaluating current trends, competition, new construction and
economic changes. The General Partner oversees each asset's operating
performance and continuously evaluates the physical improvement
requirements. In addition, the financing structure for each property
(including any prepayment penalties), tax implications, availability of
attractive mortgage financing, and the investment climate are all
considered. Any of these factors, and possibly others, could potentially
contribute to any decision by the General Partner to sell, refinance,
upgrade with capital improvements or retain a particular property. If
rental market conditions improve, the level of distributions might increase
over time. It is possible that the resale market for properties could
improve over time, making a sale of West Chase Village Apartments or other
the properties at some point in the future a more viable option than it is
currently. After taking into account the foregoing considerations, the
General Partner is not currently seeking a sale of West Chase Village
Apartments or other properties primarily because it expects the properties'
operating performance to improve in the near term. The Partnership expects
to spend approximately $906,000 for capital improvements at the properties
in 1999 to repair and update the properties. Although there can be no
assurance as to future performance, the General Partner expects these
expenditures to improve the desirability of the properties to tenants. The
General Partner does not believe that a sale of the properties at the
present time would adequately reflect the properties' future prospects.
Another significant factor considered by the General Partner is the likely
tax consequences of a sale of the properties for cash. Such a transaction
would likely result in tax liabilities for many Limited Partners. The
General Partner has not received any recent indication of interest or
offers to purchase the properties.
ORIGINALLY ANTICIPATED TERM OF PARTNERSHIP.
The Partnership's prospectus, dated December 15, 1983, pursuant to
which Units were originally sold, indicated that the Partnership was
intended to be self-liquidating and that it was anticipated that the
Partnership's properties would be sold within 3 to 7 years of their
acquisition, provided market conditions permit. The prospectus also
indicated that there could be no assurance that the Partnership would be
able to so liquidate and that, unless sooner terminated as provided in the
Partnership's Agreement of Limited Partnership, the existence of the
Partnership would continue until the year 2010. Under the Partnership's
Agreement of Limited Partnership, the term of the partnership will continue
until December 31, 2010 (six months and one (1) day after the date the
Refinancing is scheduled to mature, if the Amendment is approved), unless
sooner terminated as provided in such Agreement or by law.
CONFLICTS OF INTERESTS
The General Partnership has substantial conflicts of interest with
respect to the Amendment. An affiliate of the General Partner manages your
Partnership's properties and receives management fees and reimbursement of
its expenses. In addition, the General Partner receives fees and
reimbursement of its expenses for managing the Partnership. The extension
of the term of the Partnership may result in such fees continuing
to be paid for a longer period than would be the case if the term of the
Partnership expired in 2010. Therefore, the interests of the General
Partner and its affiliates in continuing the Partnership may be different
than those of the Limited Partners who desire to have the Partnership
dissolved and liquidated more quickly. The following table sets forth, for
each of the years indicated, compensation paid by the Partnership to the
General Partner and its affiliates.
Partnership Property
Fees and Management
Year Expenses Fees
- ---- ----------- -----------
1995.................................... $364,000 $220,000
1996.................................... 304,000 207,000
1997.................................... 238,000 181,000
1998.................................... 165,000 180,000
The General Partner of the Partnerships is wholly owned by
Apartment Investment and Management Company ("AIMCO"). Because AIMCO and
the Partnership both invest in apartment properties, these properties may
compete with one another for tenants. Furthermore, Limited Partners should
bear in mind that AIMCO may acquire properties in general market areas
where the Partnership's properties are located. It is believed that this
concentration of properties in a general market area will facilitate
overall operations through collective advertising efforts and other
operational efficiencies. In managing AIMCO's properties, AIMCO will
attempt to reduce such conflicts between competing properties by referring
prospective customers to the property considered to be most conveniently
located for the customer's needs.
On May 19, 1999, an affiliate of AIMCO commenced an offer to
purchase 46,436.36 Units, at $64 per Unit. On July 30, 1999, such affiliate
purchased 3,882.5 Units pursuant to the offer. Although AIMCO and its
affiliates have no current plans to conduct future tender offers for the
Units, their plans may change based on future circumstances, including the
making of offers by parties not affiliated with AIMCO.
FIDUCIARY DUTIES; INDEMNIFICATION
California law requires a general partner to adhere to fiduciary
duty standards under which it owes its limited partners a duty of loyalty
and a duty of care, which generally prohibits a general partner from
competing with a partnership in the conduct of the partnership's business
on behalf of a party having an interest adverse to the partnership and
requires the general partner to exercise any right consistent with the
obligation of good faith and fair dealing and free of gross negligence,
reckless conduct, intentional misconduct or known violations of law. A
partnership agreement (a) may not eliminate the duty of loyalty, but, if
not manifestly unreasonable, it may either identify specific activities
that do not violate the duty of loyalty or allow for all of the partners
(or some percentage identified in the partnership agreement) to authorize
or ratify, after full disclosure of all material facts, a specific act or
transaction that otherwise would violate that duty and (b) may contain
provisions releasing a partner from liability for actions taken in good
faith and in the honest belief that the actions are in the best interest of
the partnership, while indemnifying the partner against any good faith
belief that he or she has the power to act. Further, a partner does not
violate such duties because the partner's conduct furthers the partner's
own interest.
Under the Partnership's Agreement of Limited Partnership, the
General Partner and its agents are entitled to indemnification by the
Partnership against any liability or loss, as a result of any claim or
legal proceeding relating to the performance or non-performance of any act
concerning the activities of the Partnership except in the case where the
General Partner or its agents are guilty of bad faith, negligence, willful
misconduct or reckless disregard of duty, provided such act or omission was
done in good faith to promote the best interests of the Partnership.
CERTAIN U.S. FEDERAL INCOME TAX CONSEQUENCES
The following summary of the material U.S. federal income tax
consequences to limited partners of the Financing is based upon current
U.S. federal tax law which is subject to change, possibly with retroactive
effect. This summary is for general information only and does not address
all aspects of U.S. federal income taxation that may be relevant in the
particular circumstances of each Limited Partner or to Limited Partners
subject to special treatment under the Internal Revenue Code (the "Code").
In addition, this summary does not address any state, local or foreign tax
consequences. No ruling from the Internal Revenue Service ("IRS") will be
requested with respect to the U.S. federal income tax consequences of the
refinancing and, as such, there can be no assurance that the IRS will agree
with the summary set forth herein.
EACH LIMITED PARTNER IS URGED TO CONSULT ITS TAX ADVISOR REGARDING
THE SPECIFIC TAX CONSEQUENCES OF THE AMENDMENT AND THE FINANCING, INCLUDING
THE APPLICATION OF FEDERAL, STATE, LOCAL, FOREIGN AND OTHER TAX LAWS.
As an initial matter, the extension of the Partnership's term as
provided by the Amendment will not have any tax consequences to Limited
Partners.
In general, the Code provides that an increase in a partner's share
of partnership liabilities is treated as a cash contribution by such
partner to the partnership with a corresponding increase in the partner's
tax basis in its partnership interest. Conversely, to the extent a
partner's share of partnership liabilities is reduced, such reduction is
treated as a distribution of cash by the partnership to the partner with a
corresponding reduction in the partner's tax basis in its partnership
interest. In general, to the extent a partner receives cash distributions
in excess of such partner's tax basis in its partnership interest, taxable
gain is recognized.
The principal amount of the new loan will be $1,150,000. Each
Limited Partner's adjusted tax basis in its Partnership interest will be
increased by its pro rata share of this amount or approximately $7.25 per
Unit. Following the completion of the Financing, the Partnership
anticipates making a pro rata cash distribution of approximately
$1,108,750, or $7.00 per Unit. As noted above, while this cash distribution
will reduce the adjusted tax basis of the Limited Partners' interests in
the Partnership, a Limited Partner will not recognize taxable gain unless
the cash it receives exceeds its adjusted tax basis. Therefore, the
Financing and distribution should not result in the recognition of taxable
income to the Limited Partners.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
On October 1, 1998, Insignia Financial Group, Inc. merged into
AIMCO, and on February 26, 1999, Insignia Properties Trust merged into
AIMCO. As a result of these transactions, AIMCO acquired indirect ownership
of the General Partner.
No director or officer of the General Partner owns any Units. The
following table sets forth certain information regarding Units of the
Partnership owned by each person who is known by the Partnership to own
beneficially more than 5% of the Units as of July 30, 1999:
Name and address* of Amount and Nature of
Beneficial Owner Beneficial Owner Percent of Class
--------------------- -------------------- ----------------
AIMCO Properties L.P. 4,724.50 (1) 3.0%
Insignia Properties L.P. 39,791.50 (2) 25.10%
Cooper River Properties, L.L.C. 17,506 (3) 10.67%
- ------------------------
* 1873 South Bellaire Street, Denver, Colorado 80222
(1) Includes 3,369.50 Units owned by IPLP Acquisitions I L.L.C., which
is owned by AIMCO Properties, L.P. The Units may be deemed
beneficially owned by AIMCO-GP, Inc. (which is the general partner
of AIMCO Properties, L.P.) and AIMCO (which owns AIMCO-GP, Inc.)
(2) The Units may be deemed beneficially owned by AIMCO/IPT, Inc.
(which is the general partner of Insignia Properties, L.P.) and
AIMCO (which owns AIMCO/IPT, Inc.)
(3) These Units may be deemed beneficially owned by Insignia
Properties, L.P. (which wholly owns Cooper River Properties,
L.L.C.) and by AIMCO/IPT, Inc. and AIMCO.
CONSOLIDATED CAPITAL PROPERTIES III
By: CONCAP EQUITIES, INC.
Managing General Partner
October ___, 1999
APPENDIX
CONSOLIDATED CAPITAL PARTNERS III
1873 South Bellaire Street
Denver, Colorado 80222
CONSENT OF LIMITED PARTNER
The undersigned, a limited partner of Consolidated Capital Partners
III (the "Partnership"), and the holder of units (the "Units") of limited
partnership interest in the Partnership, acting with respect to all of the
Units owned by the undersigned, hereby:
[__] Consents [__] Withholds Consent [__] Abstains
with respect to an amendment (the "Amendment") of Section 41.03(b) of the
Partnership's Agreement of Limited Partnership to read in its entirety as
follows: "The Term of The Partnership shall commence as of the 15th day of
July 1981 (the "effective date") and shall continue for a period ending the
earlier of : . . . (b) ______, 2020*; . . . (g) six months and one (1) day
after the last indebtedness secured by any of the Partnership's real
property is paid in full (unless any new financing otherwise requires)."
IF NO ELECTION IS SPECIFIED, ANY OTHERWISE PROPERLY COMPLETED AND
SIGNED CONSENT FORM WILL BE DEEMED TO BE A CONSENT TO THE AMENDMENT.
The undersigned hereby acknowledges receipt of the Consent
Solicitation Statement, dated October __ , 1999. THIS CONSENT IS SOLICITED
ON BEHALF OF BY CONSOLIDATED CAPITAL PARTNERS III, CONCAP EQUITIES, INC.,
THE MANAGING GENERAL PARTNER.
A fully completed, signed and dated copy of this Consent Form
should be sent to the Partnership by mail or overnight courier to the
respective address specified below, or by fax to the fax number specified
below, prior to 5:00 p.m., New York City time on ____________, 1999.
Completed and signed consents should be sent to Corporate Investors
Communications, Inc. by mail to P.O. Box 2065, South Hackensack, New Jersey
07606-2065; by overnight courier service to 111 Commerce Road, Carlstadt,
New Jersey 07072--Attention: Reorganization Department; or by fax to
( )___-____.
Dated:____________, 1999 By: ___________________________
___________________________
Please Print Name
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* A date that is six months and one (1) day after the Refinancing will
initially be scheduled to mature.
If held jointly:
By:________________________________
________________________________
Please Print Name
Please sign exactly as you hold your Partnership Units. When signing as an
attorney-in-fact, executors, administrator, trustee or guardian, please
give your full title. If an interest is jointly held, each holder should
sign. If a corporation, please sign in full corporate name by a duly
authorized officer. If a partnership, please sign in partnership name by a
duly authorized person.
