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 (Date of earliest event reported): December 5, 1995
JMB INCOME PROPERTIES, LTD. - IX
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(Exact name of registrant as specified in its charter)
Illinois 0-12432 36-3126228
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(State or other) (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Organization
900 N. Michigan Avenue, Chicago, Illinois 60611-1575
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(Address of principal executive office)
Registrant's telephone number, including area code: (312) 915-1987
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TOWN AND COUNTRY CENTER
Houston, Texas
ITEM 5. OTHER EVENTS. JMB Income Properties, Ltd. - IX (the
"Partnership"), in a joint venture with an affiliated partnership, JMB
Income Properties, Ltd.-VIII, owned an interest in Town and Country Center,
a 1,054,000 square foot regional shopping center located in Houston, Texas,
through another joint venture ("T&C") with the developer of the center.
The center includes six free-standing buildings and a three-level enclosed
mall, of which T&C owned approximately 370,000 square feet of mall space
(the "Property"). On December 5, 1995, the lender, American General Life
and Accident Insurance Company, realized upon its security for its non-
recourse mortgage loan, which included the land, building and related
improvements of the Property, in discharge of the loan. The Property was
approximately 76% occupied (including temporary tenants) on the disposition
date. As previously reported, the Property faced strong competition in its
area. T&C had prepared and evaluated a plan for an extensive renovation
and re-merchandising of the Property. Given T&C's level of debt, the
strong competition that the Property faced and the significant cost that
would have been required to lease, renovate and re-merchandise the
Property, T&C decided in September 1995 not to commit any additional
capital to pay continued operating deficits of the Property, including
funding for debt service payments, without obtaining a modification to the
existing non-recourse mortgage loan. Consequently, T&C remitted to the
lender only the amount of cash flow from property operations after expenses
rather than the full debt service payment required for the month of
September 1995. The lender was unwilling to modify the loan and realized
upon its security as a result of the default in the payment of debt
service.
As a result of the disposition of the Property to the lender and the
liquidation of the joint ventures mentioned above, the Partnership has
recognized a gain of approximately $5,400,000 for financial reporting
purposes and a gain of approximately $3,900,000, for Federal income tax
reporting purposes. Substantially all of the gain for financial reporting
purposes results from the liquidation of the joint ventures. T&C had
previously recorded, at September 30, 1995, a $30,115,000 loss on value
impairment (of which the Partnership's share was approximately $6,917,000)
for financial reporting purposes relating to the underlying real estate
assets. There are no proceeds from the disposition. Under the terms of
the applicable venture agreements, gain on disposition of the Property and
liquidations of joint ventures is to be allocated according to the
respective ownership percentages of the venture partners. The
Partnership's ownership percentage in the Property was 22.97%.
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.
JMB INCOME PROPERTIES, LTD. - IX
By: JMB Realty Corporation
Managing General Partner
By: GAILEN J. HULL
Gailen J. Hull
Senior Vice President
Dated: January 9, 1996
