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 January 14, 1999
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
<PAGE>
Item 2. Acquisition or disposition of assets
DISPOSITION OF OLDE ENGLISH VILLAGE APARTMENTS
DES MOINES, IOWA
On January 14, 1999, Griffin Real Estate Fund-II, A Limited Partnership sold the
Olde English Village Apartments to Zipco, Inc.
Description of Property
Olde English Village Apartments is a 264 unit apartment complex located at 1201
Office Park Road, Des Moines, Iowa. The property was originally acquired by
Griffin Real Estate Fund-II on August 31, 1982 for $7,150,000. A down payment of
$1,800,000 was made with the balance of $5,350,000 financed by a contract for
deed. In April, 1987 the contract for deed was extinguished and replaced with a
new $5,400,000 first mortgage. Subsequently in November 1990 a $500,000 second
mortgage was taken out on the property. In June 1994 the property was refinanced
and the first and second mortgages were extinguished and replaced with a new
$5,600,000 first mortgage.
Sale of Property
The Olde English Apartments sales price of $9,000,000 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 proceeds
of the sale, the mortgage principal balance of $5,132,711, accrued interest of
$17,216 and sales costs were paid.
Item 7. Financial Statements and Exhibits
The following documents are filed as part of this report:
Proforma financial information.
1
<PAGE>
GRIFFIN REAL ESTATE FUND-II,
A LIMITED PARTNERSHIP
BALANCE SHEETS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
* After
ASSETS: Actual Adjustment Disposition Proforma
- ------- ------------ ------------ --------------------
<S> <C> <C> <C>
Cash and cash equivalents $ 628,333 $ (38,036) $ 590,297
Escrow deposits 224,511 (78,094) 146,417
Receivables and other assets 19,784 (6,217) 13,567
------------ ------------ ------------
Total 872,628 (122,347) 750,281
------------ ------------ ------------
PROPERTY AND EQUIPMENT:
Land 1,529,374 (815,329) 714,045
Buildings and improvements 16,430,929 (7,548,535) 8,882,394
Furniture and equipment 1,339,243 (798,703) 540,540
------------ ------------ ------------
Total 19,299,546 (9,162,567) 10,136,979
Less accumulated depreciation 10,292,116 (4,765,128) 5,526,988
------------ ------------ ------------
Property and equipment - net 9,007,430 (4,397,439) 4,609,991
------------ ------------ ------------
Deferred expenses less accumulated
amortization - $188,078 22,240 (22,240) --
------------ ------------ ------------
TOTAL ASSETS $ 9,902,298 $ (4,542,026) $ 5,360,272
============ ============ ============
LIABILITES AND PARTNERS' EQUITY:
- --------------------------------
LIABILITES:
Accounts payable:
Affiliate $ 8,657 $ -- $ 8,657
Other 477,675 (304,700) 172,975
Security deposits 90,063 (18,515) 71,548
Accrued interest 60,576 (38,598) 21,978
Mortgage notes payable 9,031,201 (5,263,528) 3,767,673
------------ ------------ ------------
Total liabilities 9,668,172 (5,625,341) 4,042,831
------------ ------------ ------------
PARTNERS' EQUITY:
General Partner (462,914) 54,166 (408,748)
Limited Partners 697,040 1,029,149 1,726,189
------------ ------------ ------------
Total Partners' Equity 234,126 1,083,315 1,317,441
------------ ------------ ------------
TOTAL LIABILITIES AND
PARTNERS' EQUITY $ 9,902,298 $ (4,542,026) $ 5,360,272
============ ============ ============
</TABLE>
* The after disposition proforma represents the historical operations of the
Partnership which does not include assets or liabilities relating to the
disposed property.
2
<PAGE>
GRIFFIN REAL ESTATE FUND-II,
A LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
* After Disposition
REVENUES: Actual Adjustment Proforma
- --------- ------------ ------------ --------
<S> <C> <C> <C>
Rent (less apartment vacancies: 1997,
$268,496) $ 4,335,378 $ (1,583,061) $ 2,752,317
Interest 45,414 (2,972) 42,442
Gain on sale of property
and equipment 4,953,337 -- 4,953,337
Other 208,541 (92,686) 115,855
------------ ------------ ------------
Total revenues 9,542,670 (1,678,719) 7,863,951
------------ ------------ ------------
EXPENSES:
Interest 903,543 (458,349) 445,194
Depreciation and amortization 803,521 (336,663) 466,858
Real Estate Taxes 470,006 (271,566) 198,440
Repairs and maintenance 662,336 (317,835) 344,501
Utilities 411,435 (123,843) 287,592
Salaries and employee benefits 458,340 (226,536) 231,804
Management fees to related parties 259,996 (83,757) 176,239
Administratiave 150,699 (44,592) 106,107
Insurance 108,003 (34,189) 73,814
Bad Debt 5,479 (8,866) (3,387)
Other 5,518 (1,066) 4,452
------------ ------------ ------------
Total Expenses 4,238,876 (1,907,262) 2,331,614
------------ ------------ ------------
NET INCOME BEFORE
EXTRAORDINARY ITEM $ 5,303,794 $ 228,543 $ 5,532,337
EXTRAORDINARY ITEM -
LOSS ON DEBT EXTINGUISHMENT (142,121) -- (142,121)
------------ ------------ ------------
NET INCOME $ 5,161,673 $ 228,543 $ 5,390,216
============ ============ ============
NET INCOME ALLOCATED
TO GENERAL PARTNERS $ 144,640 $ 11,427 $ 156,067
============ ============ ============
NET INCOME ALLOCATED
TO LIMITED PARTNERS $ 5,017,033 $ 217,116 $ 5,234,149
============ ============ ============
PER UNIT:
NET INCOME BEFORE
EXTRAORDINARY ITEM $ 2,359.35 $ 99.37 $ 2,458.72
EXTRAORDINARY ITEM (63.23) -- (63.23)
------------ ------------ ------------
NET INCOME $ 2,296.12 $ 99.37 $ 2,395.49
============ ============ ============
</TABLE>
* 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.
3
<PAGE>
GRIFFIN REAL ESTATE FUND-II,
A LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS
SEPTEMBER 30, 1998
(unaudited)
<TABLE>
<CAPTION>
* After Disposition
ASSETS: Actual Adjustments Proforma
- ------- ------------ ------------ --------
<S> <C> <C> <C>
Cash and cash equivalents $ 373,324 $ (49,815) $ 323,509
Receivables and other assets 147,203 (142,894) 4,309
------------ ------------ ------------
Total 520,527 (192,709) 327,818
------------ ------------ ------------
PROPERTY AND EQUIPMENT:
Land 815,329 (815,329) --
Buildings and Improvements 7,584,793 (7,584,793) --
Furniture and Equipment 798,704 (798,704) --
------------ ------------ ------------
Total 9,198,826 (9,198,826) --
Less accumulated depreciation 4,995,247 (4,995,247) --
------------ ------------ ------------
Property and Equipment - net 4,203,579 (4,203,579) --
------------ ------------ ------------
TOTAL ASSETS $ 4,724,106 $ (4,396,288) $ 327,818
============ ============ ============
LIABILITIES AND PARTNERS' EQUITY:
- ---------------------------------
LIABILITIES:
Accounts payable and accrued
liabilities $ 327,443 $ (325,075) $ 2,368
Security Deposit 29,155 (29,155) --
Mortgage notes payable 5,175,439 (5,175,439) --
------------ ------------ ------------
Total liabilities 5,532,037 (5,529,669) 2,368
------------ ------------ ------------
PARTNERS' EQUITY:
General Partners (46,183) 56,669 10,486
Limited Partners (761,748) 1,076,712 314,964
------------ ------------ ------------
Total Partners' Equity (807,931) 1,133,381 325,450
------------ ------------ ------------
TOTAL LIABILITIES AND
PARTNERS' EQUITY $ 4,724,106 $ (4,396,288) $ 327,818
============ ============ ============
</TABLE>
*The after disposition proforma represents the historical operations of the
Partnership which does not include assets or liabilities relating to the
disposed property.
4
<PAGE>
GRIFFIN REAL ESTATE FUND-II,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1998
(unaudited)
<TABLE>
<CAPTION>
REVENUES: Actual Adjustments *After Disposition
- --------- ------------ ------------ Proforma
--------
<S> <C> <C> <C>
Rental Income $ 2,686,718 $ (1,245,170) $ 1,441,548
Interest Income 35,221 (321) 34,900
Gain on Sale of Property 9,792,645 -- 9,792,645
Other Income 121,848 (60,471) 61,377
------------ ------------ ------------
Total Revenues 12,636,432 (1,305,962) 11,330,470
------------ ------------ ------------
OPERATING EXPENSES:
Operating Expenses 1,538,484 (872,058) 666,426
Interest Expense 515,000 (340,181) 174,819
Depreciation and amortization 471,283 (236,790) 234,493
------------ ------------ ------------
Total Operating Expenses 2,524,767 (1,449,029) 1,075,738
------------ ------------ ------------
NET INCOME 10,111,665 143,067 10,254,732
NET INCOME ALLOCATED
TO GENERAL PARTNER 555,868 7,153 563,021
------------ ------------ ------------
NET INCOME ALLOCATED
TO LIMITED PARTNERS $ 9,555,797 $ 135,914 $ 9,691,711
============ ============ ============
NET INCOME $ 4,373.36 $ 62.20 $ 4,435.56
============ ============ ============
</TABLE>
* 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.
5
<PAGE>
Signatures
Pursuant to the requirements of the Securities and Exchange Act o f 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: January 29, 1999 BY: /s/ Larry D. Fransen
------------------------------------
Larry D. Fransen
General Partner
6
