UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant To Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 1995
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from _____________ to _______.
Commission File Number 0-10293
BRAUVIN REAL ESTATE FUND I
(Exact name of registrant as specified in its charter)
Illinois 36-3121769
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
150 South Wacker Drive, Suite 3200, Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
(312) 443-0922
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES X NO
<PAGE>
BRAUVIN REAL ESTATE FUND I
Index
Page
PART I Financial Information
Item 1. Financial Statements . . . . . . . . . . . . . . 3
Statement of Net Liabilities in Liquidation
at June 30, 1995 (unaudited)and
December 31, 1994 (audited) - (Liquidation
Basis) . . . . . . . . . . . . . . . . . . . . . 4
Statement of Changes in Net Liabilities in
Liquidation for the six months ended
June 30, 1995 (unaudited) - (Liquidation Basis) . 5
Statement of Changes in Net Liabilities in
Liquidation for the three months ended
June 30, 1995. . . . . . . . . . . . . . . . . . 6
Statement of Operations for the six months ended
June 30, 1994(unaudited) - (Going Concern Basis). 7
Statement of Operations for the three months
ended June 30, 1994 (unaudited) - (Going Concern
Basis) . . . . . . . . . . . . . . . . . . . . . . 8
Statement of Cash Flows for the six months ended
June 30, 1994(unaudited) - (Going Concern Basis) . 9
Notes to Financial Statements . . . . . . . . . . 10
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . 12
PART II Other Information
Item 1. Legal Proceedings . . . . . . . . . . . . 14
Item 2. Changes in Securities . . . . . . . . . . 14
Item 3. Defaults Upon Senior Securities . . . . . 14
Item 4. Submission of Matters to a Vote of Security
Holders . . . . . . . . . . . . . . . . . . 14
Item 5. Other Information . . . . . . . . . . . . . 14
Item 6. Exhibits and Reports on Form 8-K . . . . . 14
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . 15
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
Except for the December 31, 1994 audited Statement of Net
Liabilities in Liquidation, the following Statement of Net
Liabilities in Liquidation as of June 30, 1995, Statement of
Changes in Net Liabilities in Liquidation for the six months
ended June 30, 1995, Statements of Operations for the six and
three months ended June 30, 1994, and Statement of Cash Flows for
the six months ended June 30, 1994 for Brauvin Real Estate Fund I
(the "Partnership") are unaudited and have not been examined by
independent public accountants but reflect in the opinion of the
management, all adjustments necessary to present fairly the
information required.
These financial statements should be read in conjunction
with the financial statements and notes thereto included in the
Partnership's 1994 Annual Report on Form 10-K.
<PAGE>
BRAUVIN REAL ESTATE FUND I
(an Illinois limited partnership)
STATEMENTS OF NET LIABILITIES IN LIQUIDATION
(Liquidation Basis)
June 30, December 31,
1995 1994
(Unaudited) (Audited)
ASSETS
Cash and cash equivalents $ 557,184 $ 144,483
Due from General Partner 234,500 234,500
Tenant receivables 142,678 132,396
Other assets 26,964 49,357
Real estate held for sale 2,835,941 4,031,033
Total Assets $3,797,267 $4,591,769
LIABILITIES
Accounts payable and other accrued
expenses $ 499,949 $ 551,855
Due to affiliates 477,430 790,099
Security deposits 23,008 46,607
Note payable -- 200,000
Mortgages payable 2,843,690 3,673,628
Estimated losses through date of
liquidation 150,000 200,000
Total Liabilities 3,994,077 5,460,189
Net liabilities in liquidation $ 196,810 $ 868,420
See accompanying notes.
<PAGE>
BRAUVIN REAL ESTATE FUND I
(an Illinois limited partnership)
STATEMENT OF CHANGES IN NET LIABILITIES IN LIQUIDATION -
(UNAUDITED)
For the six months ended June 30, 1995
(Liquidation Basis)
Net liabilities in liquidation at
December 31, 1994 $ (868,420)
Adjustment to provision of estimated
losses through date of liquidation 671,610
Net liabilities in liquidation at
June 30, 1995 $ (196,810)
See accompanying notes.
BRAUVIN REAL ESTATE FUND I
(an Illinois limited partnership)
STATEMENT OF CHANGES IN NET LIABILITIES IN LIQUIDATION-
(UNAUDITED)
For the three months ended June 30, 1995
(Liquidation Basis)
Net liabilities in liquidation at
March 31, 1995 $ (868,420)
Adjustment to provision of estimated
losses through date of liquidation 671,610
Net liabilities in liquidation at
June 30, 1995 $ (196,810)
See accompanying notes.
<PAGE>
BRAUVIN REAL ESTATE FUND I
(an Illinois limited partnership)
STATEMENT OF OPERATIONS-(UNAUDITED)
For the six months ended June 30, 1994
(Going Concern Basis)
INCOME:
Rental $ 396,460
Interest 710
Other 132,262
Total income 529,432
EXPENSES:
Interest 187,786
Depreciation 92,718
Real estate taxes 186,000
Repairs and Maintenance 63,806
Other property operating 79,923
General and administrative 106,834
Total expenses 717,067
Net loss $ (187,635)
Net loss allocated to:
Limited Partners $ (182,006)
General Partners (5,629)
$ (187,635)
Net loss per Limited Partnership Interest
(5,696 Units): $ (31.95)
See accompanying notes.
<PAGE>
BRAUVIN REAL ESTATE FUND I
(an Illinois limited partnership)
STATEMENT OF OPERATIONS-(UNAUDITED)
For the three months ended June 30, 1994
(Going Concern Basis)
INCOME:
Rental $ 199,739
Interest 225
Other 68,391
Total income 268,355
EXPENSES:
Interest 92,573
Depreciation 45,648
Real estate taxes 93,000
Repairs and Maintenance 36,744
Other property operating 39,765
General and administrative 68,780
Total expenses 376,510
Net loss $ (108,155)
Net loss allocated to:
Limited Partners $ (104,910)
General Partners (3,245)
$ (108,155)
Net loss per Limited Partnership Interest
(5,696 Units): $ (18.42)
See accompanying notes.
<PAGE>
BRAUVIN REAL ESTATE FUND I
(an Illinois limited partnership)
STATEMENT OF CASH FLOWS-(UNAUDITED)
For the six months ended June 30, 1994
(Going Concern Basis)
Cash Flow From Operating Activities:
Net loss $ (187,635)
Adjustments to reconcile net loss to cash
used by operating activities:
Depreciation and amortization expense 117,136
Changes in assets and liabilities:
Increase in tenant receivables (29,578)
Increase in other assets (38,115)
Increase in accounts payable and accrued expenses 47,418
Increase in due to affiliates 59,027
Decrease in accrued interest payable (6,667)
Decrease in security deposit (1,155)
Total adjustments 148,066
Net cash used by operating activities (39,569)
Cash Flow From Investing Activities:
Capital expenditures (5,635)
Net cash used by investing activities (5,635)
Cash Flow From Financing Activities:
Repayment of mortgages (19,221)
Cash used by financing activities (19,221)
Net decrease in cash and cash equivalents (64,425)
Cash and cash equivalents at beginning of period 86,660
Cash and cash equivalents at end of period $ 22,235
See accompanying notes.
<PAGE>
BRAUVIN REAL ESTATE FUND I
(an Illinois limited partnership)
NOTES TO FINANCIAL STATEMENTS
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.
For further information, refer to the financial statements and
footnotes thereto included in the Partnership's annual report on
Form 10-K for the year ended December 31, 1994.
As a result of the General Partner's decision to cease
operations, and in accordance with generally accepted accounting
principles, the Partnership's financial statements as of June 30,
1995 have been prepared on a liquidation basis. Accordingly, the
carrying values of the assets are presented at estimated
realizable amounts and all liabilities are presented at estimated
settlement amounts,including estimated costs associated with
carrying out the liquidation. Preparation of the financial
statements on a liquidation basis required significant
assumptions by management, including assumptions regarding the
amounts that creditors would agree to accept in settlement of
obligations due them, the estimate of liquidation costs to be
incurred and the resolution of contingent liabilities,including
tax liabilities, resulting from the liquidation. There may
be differences between the assumptions and the actual results
because events and circumstances frequently do not occur as
expected. Those differences, if any, could result in a change in
the net liabilities recorded in the statement of net liabilities
in liquidation as of June 30, 1995.
(2) MORTGAGES
On May 16, 1995, the Partnership paid off the Mokena
Industrial Building first mortgage and note payable as the result
of the sale of Mokena Industrial Building to an unaffiliated
third party for approximately $1.9 million. (See Note 5.)
(3) ADJUSTMENT TO PROVISION OF ESTIMATED LOSSES THROUGH DATE OF
LIQUIDATION
At July 1, 1994, in accordance with the liquidation basis of
accounting, assets were adjusted to estimated net realizable
value and liabilities were adjusted to estimated settlement
amounts, including estimated costs associated with carrying out
the liquidation. At June 30, 1995, the provision for estimated
losses through date of liquidation was decreased by $671,610.
The provision was decreased based on the Partnership's
reassessment of the estimate of costs to complete the
liquidation.
BRAUVIN REAL ESTATE FUND I
(an Illinois limited partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
(4) TRANSACTIONS WITH AFFILIATES
The General Partners and other affiliates provide various
services to support operating activities of the Partnership.
Fees, commissions and other expense incurred by the Partnership
with respect to such services for the six months ended June 30,
1995 and 1994 are as follows:
1995 1994
Legal fees $ 828 $1,080
Management fees and reimbursable
administrative services 63,709 66,066
The Partnership believes the amounts paid to affiliates are
representative of amounts which would have been paid to
independent parties for similar services. Management fees cannot
exceed 5% of gross operating revenues generated by the
Partnership properties. The Partnership had payables to
affiliates for management fees and reimbursable administrative
services of $477,226 and $756,804 at June 30, 1995 and December
31, 1994, respectively. The Partnership had payables to
affiliates for legal fees of $33,295 at December 31, 1994. No
amounts were payable to affiliates for legal fees at June
30, 1995.
(5) SALE OF MOKENA INDUSTRIAL BUILDING
On May 16, 1995, the Partnership sold the Mokena Industrial
Building to an unaffiliated third party for $1.9 million.
Pursuant to the liquidation basis of accounting, the gain of
$595,138 related to the sale served to increase the provision of
estimated losses through date of liquidation.
(6) SUBSEQUENT EVENT
The Partnership has commenced to process of transferring
ownership of Cross Creek to the property's lenders. A receiver
for the lender was appointed in late July. As a result, it is
likely that the provision of estimated losses through date of
liquidation will be adjusted such that the Partnership will have
net assets in liquidation.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Liquidity and Capital Resources
The General Partners of the Partnership have decided to
conclude the Partnership operations. During the second quarter
of 1995, the Partnership continued to work toward the disposition
of its properties and the winding up of its affairs.
On May 16, 1995, the Partnership sold the Mokena Industrial
Building to an unaffiliated third party for approximately $1.9
million. Proceeds from this sale satisfied the mortgage
indebtedness on the property and will allow the Partnership to
satisfy all of its outstanding payables.
Over the last several quarters, we have been analyzing
several alternatives for Cross Creek Commons. We have worked
with local and national brokers seeking new tenants. We have
contemplated reconfiguring the Center to attract a new anchor
tenant (or tenants). We have marketed the property for sale.
All of these efforts, however, have led us to the conclusion that
the property's current value is less than its mortgage
indebtedness. Further, the property slipped below break-even
during 1995 and has been unable to pay its real estate taxes.
Accordingly, the Partnership has commenced the process of
transferring its ownership to the property's lender. A
receiver for the lender was appointed in late July and we
anticipate that title will transfer in the third quarter.
The disposition of Mokena and Cross Creek will likely allow
the Partnership to conclude its affairs in the third quarter.
Through this process we anticipate we will disburse any remaining
nominal net proceeds of the Partnership to investors.
<PAGE>
Results of Operations - For the six months ended June 30, 1995
compared to June 30, 1994
Pursuant to its liquidation basis of accounting, results of
operations have been charged to the provision of estimated losses
through date of liquidation. The results of operations for the
six months ended June 30, 1995 reflect a net loss of $3,107
compared to a net loss of $187,635 for the six months ended June
30, 1994, a decrease of approximately $184,500. The results of
operations for the three months ended June 30, 1995 reflect a net
loss of $32,683 compared to a net loss of $108,155 for the three
months ended June 30,1994, a decrease of approximately $75,500.
The decrease in net loss was due to a decrease in total revenue
and a decrease in total expenses.
Total revenue generated for the six months ended June 30,
1995 was $492,291 compared to $529,432 for the six months ended
June 30,1994, a decrease of approximately $37,000. Total revenue
for the three months ended June 30, 1995 was $185,563 compared to
$268,355 for the three months ended June 30, 1994, a decrease of
approximately $82,800. The decrease in total revenue was due to
the decrease in properties owned and operated as the result of
the sale of Mokena Industrial Building in May 1995.
Total expenses for the six months ended June 30, 1995 were
$495,398 compared to $717,067 for the six months ended June 30,
1994, a decrease of approximately $221,700. Total expenses for
the three months ended June 30, 1995 was $218,248 compared to
$376,510 for the three months ended June 30, 1994, a decrease of
approximately $158,300. The decrease in expenses was mainly due
to a decrease in depreciation expense as a result of the
liquidation basis of accounting which reduced the properties to
their net realizable value and the decrease in repair and
maintenance expense.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings.
None.
ITEM 2. Changes in Securities.
None.
ITEM 3. Defaults Upon Senior Securities.
None.
ITEM 4. Submission of Matters to a Vote of Security Holders.
None.
ITEM 5. Other Information.
None.
ITEM 6. Exhibits and Reports on Form 8-K.
Exhibit 27. Financial Data Schedule
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
BY: Brauvin Properties, Inc.
Corporate General Partner of
Brauvin Real Estate Fund I
BY: /s/ Jerome J. Brault
Jerome J. Brault
President and
Chief Executive Officer
DATE: August 14, 1995
BY: /s/ Thomas J. Coorsh
Thomas J. Coorsh
Chief Financial Officer
DATE: August 14, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 557,184
<SECURITIES> 0
<RECEIVABLES> 404,142
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 2,835,941 <F1>
<DEPRECIATION> 0 <F2>
<TOTAL-ASSETS> 3,797,267
<CURRENT-LIABILITIES> 0
<BONDS> 2,843,690 <F3>
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 3,994,077
<SALES> 0
<TOTAL-REVENUES> 529,432 <F4>
<CGS> 0
<TOTAL-COSTS> 717,067 <F5>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (187,635)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> "PP&E" REPRESENTS REAL ESTATE HELD FOR SALE
<F2> "DEPRECIATION" IS INCLUDED IN "PP&E"
<F3> "BONDS" REPRESENTS MORTGAGE PAYABLE
<F4> "TOTAL REVENUES" REPRESENTS RENTAL, INTEREST, AND OTHER
INCOME
<F5> "TOTAL COSTS" REPRESENTS TOTAL EXPENSES
</FN>
</TABLE>
