SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended September 30, 1996Commission file #0-12432
JMB INCOME PROPERTIES, LTD. - IX
(Exact name of registrant as specified in its charter)
Illinois 36-3126228
(State of organization) (IRS Employer Identification No.)
900 N. Michigan Ave., Chicago, IL 60611
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code 312/915-1987
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
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION
Item 1. Financial Statements. . . . . . . . . . . . 3
Item 2. Management's Discussion and
Analysis of Financial Condition and
Results of Operations . . . . . . . . . . . 10
PART II OTHER INFORMATION
Item 5. Other Information . . . . . . . . . . . . . 13
Item 6. Exhibits and Reports on Form 8-K. . . . . . 14
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JMB INCOME PROPERTIES, LTD. - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
(UNAUDITED)
ASSETS
------
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1996 1995
------------- -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents. . . . . . . . . . . . . . . . . . $ 1,779,168 4,183,046
Interest, rents and other receivables. . . . . . . . . . . . 174,885 60,125
------------ -----------
Total current assets. . . . . . . . . . . . . . . . . . 1,954,053 4,243,171
------------ -----------
Investment property, at cost:
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . 899,298 899,298
Buildings and improvements . . . . . . . . . . . . . . . . . 26,250,871 26,075,228
------------ -----------
27,150,169 26,974,526
Less accumulated depreciation. . . . . . . . . . . . . . . . 14,226,601 13,726,829
------------ -----------
Total investment property,
net of accumulated depreciation . . . . . . . . . . . 12,923,568 13,247,697
Deferred expenses. . . . . . . . . . . . . . . . . . . . . . . 700,582 740,785
Accrued rents receivable . . . . . . . . . . . . . . . . . . . 4,236,903 4,602,086
------------ -----------
$ 19,815,106 22,833,739
============ ===========
LIABILITIES AND PARTNERS' CAPITAL ACCOUNTS (DEFICITS)
-----------------------------------------------------
Current liabilities:
Current portion of long-term debt. . . . . . . . . . . . . . $ 15,182,060 15,565,705
Accounts payable . . . . . . . . . . . . . . . . . . . . . . 699,820 521,551
Accrued interest . . . . . . . . . . . . . . . . . . . . . . 132,843 136,200
------------ -----------
Total current liabilities . . . . . . . . . . . . . . . 16,014,723 16,223,456
Tenant security deposits . . . . . . . . . . . . . . . . . . . 70,793 66,982
------------ -----------
Commitments and contingencies
Total liabilities . . . . . . . . . . . . . . . . . . . 16,085,516 16,290,438
------------ -----------
Partners' capital accounts (deficits):
General partners:
Capital contributions . . . . . . . . . . . . . . . . . . 1,000 1,000
Cumulative net earnings (losses) . . . . . . . . . . . . . (4,058,548) (4,023,132)
Cumulative cash distributions. . . . . . . . . . . . . . . (1,962,978) (1,962,978)
------------ -----------
(6,020,526) (5,985,110)
------------ -----------
Limited partners (77,132 interests):
Capital contributions, net of offering costs . . . . . . . 68,210,848 68,210,848
Cumulative net earnings (losses) . . . . . . . . . . . . . 38,426,292 39,276,287
Cumulative cash distributions. . . . . . . . . . . . . . . (96,887,024) (94,958,724)
------------ -----------
9,750,116 12,528,411
------------ -----------
Total partners' capital accounts. . . . . . . . . . . . 3,729,590 6,543,301
------------ -----------
$ 19,815,106 22,833,739
============ ===========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
JMB INCOME PROPERTIES, LTD. - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
-------------------------- ------------------------
1996 1995 1996 1995
----------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Income:
Rental income. . . . . . . . . . . . . . $ 746,773 767,400 2,129,247 2,400,675
Interest income. . . . . . . . . . . . . 17,353 58,573 107,098 178,869
---------- ---------- --------- ----------
764,126 825,973 2,236,345 2,579,544
---------- ---------- --------- ----------
Expenses:
Mortgage and other interest. . . . . . . 398,941 414,459 1,207,037 1,245,804
Depreciation . . . . . . . . . . . . . . -- 249,427 499,772 748,283
Property operating expenses. . . . . . . 388,835 384,997 1,096,235 1,098,787
Professional services. . . . . . . . . . 17,063 5,295 72,331 59,895
Amortization of deferred expenses. . . . 28,024 37,456 97,295 112,372
General and administrative . . . . . . . 42,556 34,673 149,086 100,355
---------- ---------- --------- ----------
875,419 1,126,307 3,121,756 3,365,496
---------- ---------- --------- ----------
Operating earnings (loss) . . . . (111,293) (300,334) (885,411) (785,952)
Partnership's share of earnings
(loss) from operations of
unconsolidated venture . . . . . . . . . -- (7,320,225) -- (7,635,201)
---------- ---------- --------- ----------
Net earnings (loss) . . . . . . . $ (111,293) (7,620,559) (885,411) (8,421,153)
========== ========== ========= ==========
Net earnings (loss) per
limited partnership
interest. . . . . . . . . . . . $ (1.39) (94.85) (11.02) (104.81)
========== ========== ========= ==========
Cash distributions per
limited partnership
interest. . . . . . . . . . . . $ -- -- 25.00 --
========== ========== ========= ==========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
JMB INCOME PROPERTIES, LTD. - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
<CAPTION>
1996 1995
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss). . . . . . . . . . . . . . . . . . . . . . . $ (885,411) (8,421,153)
Items not requiring (providing) cash or cash equivalents:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . 499,772 748,283
Amortization of deferred expenses. . . . . . . . . . . . . . . 97,295 112,372
Partnership's share of loss from operations
of unconsolidated venture. . . . . . . . . . . . . . . . . . -- 7,635,201
Changes in:
Interest, rents and other receivables. . . . . . . . . . . . . (114,760) 23,366
Accrued rents receivable . . . . . . . . . . . . . . . . . . . 365,183 200,972
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . 178,269 (102,399)
Accrued interest . . . . . . . . . . . . . . . . . . . . . . . (3,357) (802)
Tenant security deposits . . . . . . . . . . . . . . . . . . . 3,811 (16,633)
----------- -----------
Net cash provided by (used in) operating activities. . . 140,802 179,207
----------- -----------
Cash flows from investing activities:
Net sales and maturities (purchases) of short-term
investments. . . . . . . . . . . . . . . . . . . . . . . . . . -- 1,688,162
Additions to investment property . . . . . . . . . . . . . . . . (175,643) (36,079)
Partnership's contributions to unconsolidated venture. . . . . . -- (262,764)
Payment of deferred expenses . . . . . . . . . . . . . . . . . . (57,092) (112,414)
----------- -----------
Net cash provided by (used in)
investing activities . . . . . . . . . . . . . . . . . (232,735) 1,276,905
----------- -----------
Cash flows from financing activities:
Principal payments on long-term debt . . . . . . . . . . . . . . (383,645) (171,222)
Distributions to limited partners. . . . . . . . . . . . . . . . (1,928,300) --
----------- -----------
Net cash provided by (used in) financing activities. . . (2,311,945) (171,222)
----------- -----------
Net increase (decrease) in cash and
cash equivalents . . . . . . . . . . . . . . . . . . . (2,403,878) 1,284,890
Cash and cash equivalents, beginning of year . . . . . . 4,183,046 2,352,046
----------- -----------
Cash and cash equivalents, end of period . . . . . . . . $ 1,779,168 3,636,936
=========== ===========
Supplemental disclosure of cash flow information:
Cash paid for mortgage and other interest. . . . . . . . . . . . $ 1,210,394 1,246,606
=========== ===========
Non-cash investing and financing activities. . . . . . . . . . . $ -- --
=========== ===========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
JMB INCOME PROPERTIES, LTD. - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
GENERAL
Readers of this quarterly report should refer to the Partnership's
audited financial statements for the year ended December 31, 1995, which
are included in the Partnership's 1995 Annual Report, as certain footnote
disclosures which would substantially duplicate those contained in such
audited financial statements have been omitted from this report.
The preparation of financial statements in accordance with GAAP
requires the Partnership to make estimates and assumptions that affect the
reported or disclosed amount of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Certain amounts in the 1995 consolidated financial statements have
been reclassified to conform to the 1996 presentation.
Statement of Financial Accounting Standards No. 121 was adopted by the
Partnership on January 1, 1996.
TRANSACTIONS WITH AFFILIATES
The Partnership, pursuant to the Partnership Agreement, is permitted
to engage in various transactions involving the Managing General Partner
and its affiliates including the reimbursement for salaries and salary-
related expenses of its employees, certain of its officers, and other
direct expenses relating to the administration of the Partnership and the
operation of the Partnership's investments. Fees and other expenses
required to be paid by the Partnership to the Managing General Partner and
their affiliates as of September 30, 1996 and for the nine months ended
September 30, 1996 and 1995 are as follows:
Unpaid at
September 30,
1996 1995 1996
------- ------ -------------
Property management and
leasing fees . . . . . . $ -- -- 388,017
Reimbursement (at cost)
for out-of-pocket salary,
salary-related expenses
and other costs for the
Partnership and its
investment property. . . 26,488 62,720 16,819
------- ------- -------
$26,488 62,720 404,836
======= ======= =======
PLAZA/SEATTLE (BLANCHARD PLAZA)
On October 17, 1996, the joint venture sold the Blanchard Plaza
investment property to an unaffiliated third party for $26,100,000, all of
which was received (less closing costs) in cash at closing. After
repayment in full of the outstanding mortgage loan secured by the property,
with a principal balance of approximately $15,166,000 at the date of sale
and the payment of closing costs related to the sale, the joint venture
received net sale proceeds of approximately $9,904,000. As a result of the
sale, the venture expects to recognize in 1996 a gain of approximately
$11,960,000 and $16,750,000 for financial reporting and Federal income tax
purposes, respectively, of which substantially all of such amounts will be
allocated to the Partnership pursuant to the venture agreement. In
addition, pursuant to the venture agreement, all of the net proceeds from
the sale are allocable to the Partnership. As this is the last investment
property of the Partnership, the Partnership currently intends to make a
final liquidating distribution in cash of approximately $120.00 per
interest in late 1996 and then proceed to terminate its affairs as of
December 31, 1996.
In connection with the liquidation and termination of the Partnership,
the Managing General Partner currently intends to cause the formation of a
liquidating trust on or before December 31,1996, in which all of the
Partnership's remaining assets, subject to liabilities, will be
transferred. The initial trustees of the liquidating trust are expected to
be individuals who are officers of the Managing General Partner. Each
Holder of Interests in the Partnership would, upon the establishment of the
liquidating trust, be deemed to be the beneficial owner of a comparable
share of the aggregate beneficial interests in the liquidating trust. It
is anticipated that the liquidating trust would permit the realization of
substantial cost savings in administrative and other expenses until any
residual liabilities (including contingent liabilities) of the Partnership
are paid or otherwise determined to be extinguished and any remaining funds
are distributed to the beneficial owners of the liquidating trust. The
liquidating trust is expected to be in existence for approximately one
year, subject to extension under certain circumstances.
Due to the above, the property was classified as held for sale or
disposition as of July 1, 1996, and therefore, was not subject to continued
depreciation. The accompanying consolidated financial statements include
$2,144,022 and $2,411,857 of revenues and $1,096,235 and $1,098,787 of
operating expenses relative to the property for the nine months ended
September 30, 1996 and 1995, respectively. The property had a net carrying
value of $12,923,567 and $13,247,696 at September 30, 1996 and December 31,
1995, respectively.
The Blanchard Plaza investment property had been operating at a small
deficit. This deficit resulted from a modification of the property's
mortgage note which provided for an annual cash flow payment to the lender
which reduced the principal balance of the loan. The Partnership had used
a portion of the remaining proceeds from the sale of the Lynnhaven Mall to
cover these operating deficits. In 1995, the joint venture had received
notification from the General Services Administration ("GSA"), a major
tenant at the property, that it was due approximately $423,000 in minimum
rent credits relating to the alleged overpayment of real estate taxes from
1989 to 1995. Although the joint venture disputed this claim, the GSA
began offsetting its monthly rent payments in January 1996 in an amount
equal to 1/12 of the amount in dispute. The joint venture filed an appeal
with the General Services Board of Contract Appeals. During the third
quarter of 1996, the joint venture executed an agreement in settlement of
this claim whereby GSA was allowed to withhold the settlement amount from
rental payments in 1996. The joint venture is bound by a confidentiality
provision in the settlement agreement which does not permit disclosure of
the terms of the settlement; however, the joint venture believes the
settlement was in the best interest of the joint venture.
ADJUSTMENTS
In the opinion of the Managing General Partner, all adjustments
(consisting solely of normal recurring adjustments) necessary for a fair
presentation have been made to the accompanying figures as of September 30,
1996 and for the three and nine months ended September 30, 1996 and 1995.
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Reference is made to the notes to the accompanying financial
statements for additional information concerning the Partnership's
investment.
During the second quarter some of the Limited Partners in the
Partnership received from an unaffiliated third party an unsolicited tender
offer to purchase up to 3,379 Interests in the Partnership at between $50
and $60 per Interest. The Partnership recommended against acceptance of
this offer on the basis that, among other things, the offer price was
inadequate. In June such offer expired with approximately 1,508 Interests
being purchased by such unaffiliated third party pursuant to such offer.
In addition, the Partnership has, from time to time, received inquires from
other third parties that may consider making offers for Interests,
including requests for the list of Limited Partners in the Partnership.
These inquiries are generally preliminary in nature. There is no assurance
that any other third party will commence an offer for Interests, the terms
of any such offer or whether any such offer, if made, will be consummated,
amended or withdrawn. The board of directors of JMB Realty Corporation
("JMB") the managing general partner of the Partnership, has established a
special committee (the "Special Committee") consisting of certain directors
of JMB to deal with all matters relating to tender offers for Interests in
the Partnership, including any and all responses to such tender offers.
The Special Committee has retained independent counsel to advise it in
connection with any potential tender offers for Interests and has retained
Lehman Brothers Inc. as financial advisor to assist the Special Committee
in evaluating and responding to any additional potential tender offers for
Interests.
At September 30, 1996, the Partnership and its consolidated venture
had cash and cash equivalents of approximately $1,779,000. Such funds were
available for payment of certain deferrals to affiliates of the General
Partners and for working capital requirements. Such remaining funds and
the proceeds from the sale of the Blanchard Plaza investment property are
expected to be used to wind up the affairs of the Partnership and to make a
final liquidating distribution to the partners. Such distribution,
currently expected to be approximately $120.00 per interest, is planned for
late 1996 at which time the Partnership is expected to terminate.
In connection with the liquidation and termination of the Partnership,
the Managing General Partner currently intends to cause the formation of a
liquidating trust on or before December 31,1996, in which all of the
Partnership's remaining assets, subject to liabilities, will be
transferred. The initial trustees of the liquidating trust are expected to
be individuals who are officers of the Managing General Partner. Each
Holder of Interests in the Partnership would, upon the establishment of the
liquidating trust, be deemed to be the beneficial owner of a comparable
share of the aggregate beneficial interests in the liquidating trust. It
is anticipated that the liquidating trust would permit the realization of
substantial cost savings in administrative and other expenses until any
residual liabilities (including contingent liabilities) of the Partnership
are paid or otherwise determined to be extinguished and any remaining funds
are distributed to the beneficial owners of the liquidating trust. The
liquidating trust is expected to be in existence for approximately one
year, subject to extension under certain circumstances.
RESULTS OF OPERATIONS
The decrease in cash and cash equivalents at September 30, 1996 as
compared to December 31, 1995 is primarily due to the payment of a
distribution to the limited partners in the amount of $1,928,300 in May,
1996. Also contributing to the decrease in cash and cash equivalents was a
principal payment to the mortgage lender of annual net cash flow (as
defined) for the Blanchard Plaza investment property in the amount of
$255,800, which was paid in March,1996.
The increase in interest, rents and other receivables at September 30,
1996 as compared to December 31, 1995 is primarily due to the timing of
collections at the Blanchard Plaza investment property.
The decrease in accrued rents receivable at September 30, 1996 as
compared to December 31, 1995 is primarily due to the Partnership
recognizing rental income for certain major tenant leases at the Blanchard
Plaza investment property over the life of the lease rather than as due per
the terms of their respective leases.
The increase in accounts payable at September 30, 1996 as compared to
December 31, 1995 is primarily due to the timing of payments for property
operating expenses at the Blanchard Plaza investment property.
The decrease in rental income for the three and nine months ended
September 30, 1996 as compared to the same periods in 1995 is primarily due
to lower average occupancy and to the Partnership recognizing rental income
for certain major tenant leases at the Blanchard Plaza investment property
over the life of the lease rather than as due per the terms of their
respective leases. Also contributing to the decrease in rental income is
the settlement of GSA's claim, under which GSA was allowed to withhold a
portion of its 1996 rental payments for the alleged overpayment of real
estate taxes for the period 1989 through 1995.
The decrease in interest income for the three and nine months ended
September 30, 1996 as compared to the same periods in 1995 is primarily due
to a decrease in the average invested cash balances in 1996 due to a
distribution to the limited partners in the amount of $1,928,300 in May
1996.
The decrease in depreciation expense for the three and nine months
ended September 30, 1996 as compared to the same periods in 1995 is
attributable to the suspension of depreciation as of July 1, 1996 on
Blanchard Plaza investment property, as such property was classified as
held for sale as of July 1, 1996.
The increase in professional services for the three and nine months
ended September 30, 1996 as compared to the same periods in 1995 is
primarily due to expenses incurred in connection with the tender offer
matters as discussed above.
The decrease in amortization of deferred expenses for the three and
nine months ended September 30, 1996 as compared to the same periods in
1995 is primarily due to decreased amortization of capitalized leasing
costs at the Blanchard Plaza investment property.
The increase in general and administrative expenses for the three and
nine months ended September 30, 1996 as compared to the same periods in
1995 is primarily due to the Partnership engaging independent third parties
to perform certain administrative services for the Partnership beginning in
October 1995.
The decrease in Partnership's share of loss from operations of
unconsolidated venture for the three and nine months ended September 30,
1996 as compared to the same periods in 1995 is primarily due to the
provision for value impairment recorded in 1995 related to the Town and
Country Center investment property and the subsequent transfer of title to
the property to the mortgage lender in December 1995 in full satisfaction
of the mortgage loan.
<TABLE>
PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
OCCUPANCY
The following is a listing of approximate physical occupancy levels for the Partnership's investment property
owned during 1996.
<CAPTION>
1995 1996
-------------------------------------------------------------------
At At At At At At At At
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
---- ---- ---- ----- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Blanchard Plaza Building
Seattle, Washington 96% 95% 91% 92% 90% 92% 93%
<FN>
Reference is made to the Notes to Consolidated Financial Statements for a description of the sale of this
investment property in October, 1996.
</TABLE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
3-A. The Prospectus of the Partnership dated April 14, 1982,
as supplemented September 23, 1982, January 11, 1983, February 22, 1983,
and March 28, 1983, and filed with the Commission pursuant to Rules 424(b)
and 424(c), is hereby incorporated herein by reference to Exhibit 3 to the
Partnership's report on Form 10-K (File No. 0-12432) for December 31, 1992
dated March 19, 1993.
3-B. Amended and Restated Agreement of Limited Partnership
set forth as Exhibit A to the Prospectus, which is hereby incorporated
herein by reference to Exhibit 3 to the Partnership's report on Form 10-K
(File No. 0-12432) for December 31, 1992 dated March 19, 1993.
4-A. Modification documents relating to the long-term
mortgage note secured by the Blanchard Plaza Building in Seattle,
Washington are hereby incorporated by reference to the Partnership's report
on Form 10-K (File No. 0-12432) for December 31, 1992 dated March 19, 1993.
4-B. Modification documents relating to the extension of the
long-term mortgage note secured by the Blanchard Plaza Building in Seattle,
Washington are hereby incorporated by reference to Exhibit 4-B to the
Partnership's report on Form 10-K (File No. 0-12432) for December 31, 1995
dated March 25, 1996.
10-A. Acquisition documents relating to the purchase by the
Partnership of an interest in the Blanchard Plaza Building in Seattle,
Washington are hereby incorporated by reference to the Partnership's report
on Form 8-K (File No. 0-12432) dated July 29, 1983.
10-B. Disposition documents relating to the Partnership's
transferring its interest in the Town and Country Center in Houston, Texas
are hereby incorporated by reference to Exhibit 10-B to the Partnership's
report on Form 10-K (File No. 0-12432) for December 31, 1995 dated March
25, 1996.
27. Financial Data Schedule
(b) No reports on Form 8-K have been filed during the last quarter
of the period covered by this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company 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
Date:November 8, 1996
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following person in the capacity
and on the date indicated.
GAILEN J. HULL
Gailen J. Hull, Principal Accounting Officer
Date:November 8, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S FORM 10-Q FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
INCLUDED IN SUCH REPORT.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 1,779,168
<SECURITIES> 0
<RECEIVABLES> 174,885
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,954,053
<PP&E> 27,150,169
<DEPRECIATION> 14,226,601
<TOTAL-ASSETS> 19,815,106
<CURRENT-LIABILITIES> 16,014,723
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 3,729,590
<TOTAL-LIABILITY-AND-EQUITY>19,815,106
<SALES> 2,129,247
<TOTAL-REVENUES> 2,236,345
<CGS> 0
<TOTAL-COSTS> 1,693,302
<OTHER-EXPENSES> 221,417
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,207,037
<INCOME-PRETAX> (885,411)
<INCOME-TAX> 0
<INCOME-CONTINUING> (885,411)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (885,411)
<EPS-PRIMARY> (11.02)
<EPS-DILUTED> (11.02)
</TABLE>
