UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report May 27, 1997
GRIFFIN REAL ESTATE FUND-II, A LIMITED PARTNERSHIP
MINNESOTA
Commission file number 0-11200
IRS Employer Identification No. 41-1398390
510 Marquette Avenue, Suite 300, Minneapolis, MN 55402
Registrant's telephone number: (612) 338-2828
Item 2. Acquisition or disposition of assets.
DISPOSITION OF CANDLERIDGE APARTMENTS AT
4435 NORTHWEST 86TH STREET, URBANDALE, IOWA AND THE
DISPOSITION OF THE VILLAS OF PATRICIA PARK APARTMENTS AT
3650 PATRICIA PARK, URBANDALE, IOWA
On May 27, 1997, Candleridge Apartments located at 4435 Northwest 86th Street,
Urbandale, Iowa was sold to SE-C, L.L.P., an Iowa Limited Liability Company.
Also on May 27, 1997, Villas of Patricia Park Apartments located at 3650
Patricia Park, Urbandale, Iowa was sold to SE-V, L.L.P., an Iowa Limited
Liability Company.
Description of Property
Candleridge Apartments is a 138 unit apartment complex located at 4435 Northwest
86th Street, Urbandale, Iowa. The property was originally acquired by Griffin
Real Estate Fund-II on December 30, 1981 for $3,862,109. A down payment of
$785,275 was made with the balance of $3,076,834 financed with a contract for
deed. On August 7, 1992 the property debt was refinanced with a new $3,000,000
first mortgage and the Contract for Deed was extinguished.
Villas of Patricia Park Apartments is a 120 unit apartment complex located at
3650 Patricia Park, Urbandale, Iowa. The property was originally acquired by
Griffin Real Estate Fund-II on December 30, 1981 for $3,168,856. A down payment
of $994,725 was made with the balance of $2,174,131 financed with a contract for
deed. On August 7, 1992 the property debt was refinanced with a new $2,600,000
first mortgage and the Contract for Deed was extinguished.
Sale of Property
The Candleridge Apartments sales price of $4,700,000 cash was arrived at through
negotiations with the buyer who had no material relationship to Griffin Real
Estate Fund-II, to any affiliates of Griffin Real Estate Fund-II, to its General
Partner, or to any associates of its General Partner. With the sale of the
property, the associated mortgage principal balance of $2,799,008 and accrued
interest of $16,930 were extinguished.
The Villas of Patricia Park Apartments sales price of $3,700,000 cash was
arrived at through negotiations with the buyer who had no material relationship
to Griffin Real Estate Fund-II, to any affiliates of Griffin Real Estate
Fund-II, to its General Partner, or to any associates of its General Partner.
With the sale of the property, the associated mortgage principal balance of
$2,424,539 and accrued interest of $14,665 were extinguished.
Item 7. Financial Statements and Exhibits
The following documents are filed as part of this report:
Proforma financial information.
<TABLE>
<CAPTION>
GRIFFIN REAL ESTATE FUND-II,
A LIMITED PARTNERSHIP
BALANCE SHEETS
DECEMBER 31, 1996
* After
Disposition
ASSETS: Actual Adjustment Proforma
------------ ------------ ------------
<S> <C> <C> <C>
Cash and cash equivalents $ 1,001,510 $ 2,666,167 $ 3,667,677
Real estate tax escrow deposits 338,312 (79,934) 258,378
Receivables and other assets 31,440 (4,292) 27,148
------------ ------------ ------------
Total 1,371,262 2,581,941 3,953,203
------------ ------------ ------------
PROPERTY AND EQUIPMENT:
Land 2,160,676 (631,302) 1,529,374
Buildings and improvements 22,530,068 (6,429,786) 16,100,282
Furniture and equipment 2,076,669 (778,531) 1,298,138
------------ ------------ ------------
Total 26,767,413 (7,839,619) 18,927,794
Less accumulated depreciation 13,959,999 (4,580,580) 9,379,419
------------ ------------ ------------
Property and equipment - net 12,807,414 (3,259,039) 9,548,375
------------ ------------ ------------
Deferred expenses (less accumulated
amortization -$241,738) 129,461 (98,856) 30,605
------------ ------------ ------------
TOTAL ASSETS $ 14,308,137 $ (775,954) $ 13,532,183
============ ============ ============
LIABILITIES AND PARTNERS' EQUITY:
LIABILITIES:
Accounts payable:
Affiliate $ 2,275 $ -- $ 2,275
Other 783,446 (343,977) 439,469
Security deposits 141,163 (46,620) 94,543
Accrued interest 99,256 (36,735) 62,521
Mortgage notes payable 14,510,958 (5,263,598) 9,247,360
------------ ------------ ------------
Total liabilities 15,537,098 (5,690,930) 9,846,168
------------ ------------ ------------
PARTNERS' EQUITY:
General Partners (536,068) 245,749 (290,319)
Limited Partners (692,893) 4,669,227 3,976,334
------------ ------------ ------------
Total Partners' Equity (1,228,961) 4,914,976 3,686,015
------------ ------------ ------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 14,308,137 $ (775,954) $ 13,532,183
============ ============ ============
* The after disposition proforma represents the historcial operations of the
Partnership which does not include assets or liabilities relating to the
disposed property.
</TABLE>
<TABLE>
<CAPTION>
GRIFFIN REAL ESTATE FUND-II,
A LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
*After Disposition
REVENUES: Actual Adjustments Proforma
----------- ----------- -----------
<S> <C> <C> <C>
Rent (less apartment vacancies: 1996,
$249,891) $ 5,263,634 $(1,627,551) $ 3,636,083
Interest 39,501 (720) 38,781
Other 286,231 (77,407) 208,824
----------- ----------- -----------
Total revenues 5,589,366 (1,705,678) 3,883,688
----------- ----------- -----------
EXPENSES:
Interest 1,187,555 (444,480) 743,075
Depreciation and amortization 980,071 (278,784) 701,287
Real Estate Taxes 611,626 (274,065) 337,561
Repairs and maintenance 678,240 (189,683) 488,557
Utilities 452,082 (131,775) 320,307
Salaries and employee benefits 515,722 (134,141) 381,581
Management fees to related parties 302,319 (85,225) 217,094
Administrative 175,891 (36,674) 139,217
Insurance 133,277 (30,014) 103,263
Bad Debt 3,336 728 4,064
Other 9,916 (3,260) 6,656
----------- ----------- -----------
Total Expenses 5,050,035 (1,607,373) 3,442,662
----------- ----------- -----------
NET INCOME (LOSS) $ 539,331 $ (98,305) $ 441,026
=========== =========== ===========
NET INCOME (LOSS) ALLOCATED
TO GENERAL PARTNER $ 26,967 $ (4,916) $ 22,051
=========== =========== ===========
NET INCOME (LOSS) ALLOCATED
TO LIMITED PARTNERS $ 512,364 (93,389) $ 418,975
=========== =========== ===========
PER UNIT:
NET INCOME (LOSS) $ 234.49 $ (42.74) $ 191.75
=========== =========== ===========
*The after disposition proforma represents the historical operations of the
Partnership which does not include operating income or expenses relating to the
disposed property, or the gain or loss on disposal.
</TABLE>
<TABLE>
<CAPTION>
GRIFFIN REAL ESTATE FUND-II,
A LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS
MARCH 31, 1997
(unaudited)
*After Disposition
ASSETS: Actual Adjustments Proforma
------------ ------------ ------------
<S> <C> <C> <C>
Cash and cash equivalents $ 1,005,397 $ 2,750,810 $ 3,756,207
Receivables and other assets 513,162 (178,687) 334,475
------------ ------------ ------------
Total 1,518,559 2,572,123 4,090,682
------------ ------------ ------------
PROPERTY AND EQUIPMENT:
Land 2,160,676 (631,302) 1,529,374
Buildings and Improvements 22,530,068 (6,429,785) 16,100,283
Furniture and Equipment 2,076,669 (778,530) 1,298,139
------------ ------------ ------------
Total 26,767,413 (7,839,617) 18,927,796
Less accumulated depreciation 14,186,335 (4,387,919) 9,798,416
------------ ------------ ------------
Property and Equipment- net 12,581,078 (3,451,698) 9,129,380
------------ ------------ ------------
TOTAL ASSETS $ 14,099,637 $ (879,575) $ 13,220,062
============ ============ ============
LIABILITIES AND PARTNERS' EQUITY:
LIABILITIES:
Accounts payable and accrued
liabilities $ 804,056 $ (318,490) $ 485,566
Security Deposit 139,172 (47,220) 91,952
Mortgage notes payable 14,434,418 (5,239,735) 9,194,683
------------ ------------ ------------
Total liabilities 15,377,646 (5,605,445) 9,772,201
------------ ------------ ------------
PARTNERS' EQUITY:
General Partners (538,509) 236,294 (302,215)
Limited Partners (739,500) 4,489,576 3,750,076
------------ ------------ ------------
Total Partners' Equity (1,278,009) 4,725,870 3,447,861
------------ ------------ ------------
TOTAL LIABILITIES AND
PARTNERS' EQUITY $ 14,099,637 $ (879,575) $ 13,220,062
============ ============ ============
*The after disposition proforma represents the historical operations of the
Partnership which does not include assets or liabilities relating to the
disposed property.
</TABLE>
<TABLE>
<CAPTION>
GRIFFIN REAL ESTATE FUND-II,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1997
(unaudited)
*After Disposition
REVENUES: Actual Adjustments Proforma
---------- ---------- ----------
<S> <C> <C> <C>
Rental Income $1,298,994 $ (386,972) $ 912,022
Interest Income 13,633 (225) 13,408
Other Income 63,489 (17,439) 46,050
---------- ---------- ----------
Total Revenues 1,376,116 (404,636) 971,480
---------- ---------- ----------
OPERATING EXPENSES:
Operating Expenses 722,666 (218,525) 504,141
Interest Expense 290,405 (109,897) 180,508
Depreciation and amortization 239,368 (69,975) 169,393
---------- ---------- ----------
Total Operating Expenses 1,252,439 (398,397) 854,042
---------- ---------- ----------
NET INCOME 123,677 (6,239) 117,438
NET INCOME ALLOCATED
TO GENERAL PARTNER 6,184 (312) 5,872
---------- ---------- ----------
NET INCOME ALLOCATED
TO LIMITED PARTNERS $ 117,493 $ (5,927) $ 111,566
========== ========== ==========
NET INCOME PER LIMITED
PARTNERSHIP UNIT
(weighted average basis) $ 53.77 $ (2.71) $ 51.06
========== ========== ==========
*The after disposition proforma represents the historical operations of the
Partnership which does not include operating income or expenses relating to the
disposed property, or the gain or loss on disposal.
</TABLE>
Signatures
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GRIFFIN REAL ESTATE FUND II,
A LIMITED PARTNERSHIP
BY: INVESTMENT ASSOCIATES
ITS GENERAL PARTNER
Date: June 11, 1997 BY: /s/ Larry D. Fransen
-------------------------------
Larry D. Fransen
General Partner
