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 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 0-7162
MCNEIL PACIFIC INVESTORS FUND 1972
-------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
California 94-6279375
-------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
13760 Noel Road, Suite 700, LB70, Dallas, Texas 75240
-------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (214) 448-5800
----------------------------
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 and (2) has been subject to such filing
requirements for the past 90 days. Yes X No___
<PAGE>
MCNEIL PACIFIC INVESTORS FUND 1972
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
---------- ------------
ASSETS
<S> <C> <C>
Real estate investment:
Land..................................................... $2,336,000 $2,336,000
Buildings and improvements............................... 4,818,335 4,569,577
--------- ---------
7,154,335 6,905,577
Less: Accumulated depreciation.......................... (829,116) (666,496)
--------- ---------
6,325,219 6,239,081
Cash and cash equivalents................................... 736,635 1,062,361
Cash segregated for security deposits....................... 39,404 36,309
Accounts receivable......................................... 9,496 3,741
Prepaid expenses and other assets........................... 21,909 24,594
Escrow deposits............................................. 147,475 125,181
Deferred borrowing costs, net of accumulated amorti-
zation of $32,026 and $26,833 at June 30, 1995
and December 31, 1994, respectively...................... 19,908 25,101
--------- ---------
$7,300,046 $7,516,368
========= =========
LIABILITIES AND PARTNERS' EQUITY
Mortgage note payable....................................... $2,225,647 $2,287,341
Accounts payable............................................ 20,541 31,328
Accrued interest............................................ 10,546 16,679
Accrued property taxes...................................... 58,944 -
Other accrued expenses...................................... 16,375 38,685
Payable to affiliates - General Partner..................... 12,260 93,329
Security deposits and deferred rental revenue............... 42,282 48,138
--------- ---------
2,386,595 2,515,500
--------- ---------
Partners' equity:
Limited partners - 15,000 limited partnership units
authorized; 13,752.5 limited partnership units
issued and outstanding................................. 4,603,507 4,690,924
General Partner.......................................... 309,944 309,944
--------- ---------
4,913,451 5,000,868
--------- ---------
$7,300,046 $7,516,368
========= =========
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL PACIFIC INVESTORS FUND 1972
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- ---------------------------
1995 1994 1995 1994
-------- ------- -------- ----------
<S> <C> <C> <C> <C>
Revenue:
Rental revenue................ $338,055 $310,915 $713,034 $ 788,129
Interest...................... 13,845 14,649 22,814 16,460
Gain on sale of real estate... - - - 574,701
------- ------- ------- ---------
Total revenue............... 351,900 325,564 735,848 1,379,290
------- ------- ------- ---------
Expenses:
Interest...................... 45,829 53,357 98,017 142,700
Depreciation.................. 84,776 45,564 162,620 125,790
Property taxes................ 29,475 34,476 58,950 89,040
Personnel expenses............ 63,987 59,835 120,445 159,702
Utilities..................... 19,723 25,521 41,274 45,484
Repair and maintenance........ 92,133 84,198 158,011 163,757
Property management
fees - affiliates........... 19,091 15,677 40,463 38,881
Other property operating
expenses.................... 44,073 49,754 88,096 78,751
General and administrative.... 6,713 2,683 14,835 9,315
General and administrative -
affiliates.................. 19,824 10,722 40,554 29,697
------- ------- ------- ---------
Total expenses.............. 425,624 381,787 823,265 883,117
------- ------- ------- ---------
Net income (loss)................ $(73,724) $(56,223) $(87,417) $ 496,173
======= ======= ======= =========
Net income (loss) allocated
to limited partners........... $(73,274) $(56,223) $(87,417) $ 730,187
Net income (loss) allocated
to General Partner............ - - - (234,014)
------- ------- ------- ---------
Net income (loss)................ $(73,274) $(56,223) $(87,417) $ 496,173
======= ======= ======= =========
Net income (loss) per limited
partnership unit.............. $ (5.33) $ (4.09) $ (6.36) $ 53.08
======= ======= ======= =========
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL PACIFIC INVESTORS FUND 1972
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
For the Six Months Ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
Total
General Limited Partners'
Partner Partners Equity
--------- ---------- ----------
<S> <C> <C> <C>
Balance at December 31, 1993.............. $ 543,958 $4,023,366 $4,567,324
Net income (loss)......................... (234,014) 730,187 496,173
-------- --------- ---------
Balance at June 30, 1994.................. $ 309,944 $4,753,553 $5,063,497
======== ========= =========
Balance at December 31, 1994.............. $ 309,944 $4,690,924 $5,000,868
Net loss.................................. - (87,417) (87,417)
-------- ---------- ---------
Balance at June 30, 1995.................. $ 309,944 $4,603,507 $4,913,451
======== ========= =========
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL PACIFIC INVESTORS FUND 1972
STATEMENTS OF CASH FLOWS
(Unaudited)
Increase (Decrease) in Cash and Cash Equivalents
<TABLE>
<CAPTION>
Six Months Ended
June 30,
---------------------------------
1995 1994
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Cash received from tenants........................ $ 678,765 $ 779,113
Cash paid to suppliers............................ (433,510) (526,708)
Cash paid to affiliates........................... (162,086) (43,521)
Interest received................................. 22,814 16,460
Interest paid..................................... (98,957) (170,050)
Property taxes paid and escrowed.................. (22,300) (35,019)
--------- ----------
Net cash used in operating activities................ (15,274) 20,275
--------- ----------
Cash flows from investing activities:
Additions to real estate investments.............. (248,758) (122,733)
Proceeds from sale of real estate investment...... - 3,749,308
--------- ----------
Net cash provided by (used in) investing
activities........................................ (248,758) 3,626,575
--------- ----------
Cash flows from financing activities:
Principal payments on mortgage notes
payable......................................... (61,694) (92,841)
Retirement of mortgage note payable............... - (2,094,135)
--------- ----------
Net cash used in financing activities................ (61,694) (2,186,976)
--------- ----------
Net increase (decrease) in cash and
cash equivalents.................................. (325,726) 1,459,874
Cash and cash equivalents at beginning of
period............................................ 1,062,361 85,057
--------- ----------
Cash and cash equivalents at end of period........... $ 736,635 $ 1,544,931
========= ==========
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL PACIFIC INVESTORS FUND 1972
STATEMENTS OF CASH FLOWS
(Unaudited)
Reconciliation of Net Income (Loss) to Net Cash Used in
Operating Activities
<TABLE>
<CAPTION>
Six Months Ended
June 30,
-------------------------------
1995 1994
--------- ---------
<S> <C> <C>
Net income (loss).................................... $(87,417) $ 496,173
------- --------
Adjustments to reconcile net income (loss) to
net cash used in operating activities:
Depreciation...................................... 162,620 125,790
Amortization of deferred borrowing costs.......... 5,193 5,193
Gain on sale of real estate....................... - (574,701)
Changes in assets and liabilities:
Cash segregated for security deposits........... (3,095) 15,619
Accounts receivable............................. (5,755) 5,890
Prepaid expenses and other assets............... 2,685 25,235
Escrow deposits................................. (22,294) (11,366)
Accounts payable................................ (10,787) (80,401)
Accrued interest................................ (6,133) (32,544)
Accrued property taxes.......................... 58,944 65,388
Other accrued expenses.......................... (22,310) (26,458)
Payable to affiliates - General Partner......... (81,069) 25,057
Security deposits and deferred rental
revenue....................................... (5,856) (18,600)
------- --------
Total adjustments............................. 72,143 (475,898)
------- --------
Net cash used in operating activities................ $(15,274) $ 20,275
======= ========
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL PACIFIC INVESTORS FUND 1972
Notes To Financial Statements
(Unaudited)
June 30, 1995
NOTE 1.
-------
McNeil Pacific Investors Fund 1972 (the "Partnership") is a limited partnership
organized under the laws of the State of California to invest in real property.
The general partner of the Partnership is McNeil Partners, L.P. (the "General
Partner"), a Delaware limited partnership affiliated with Robert A. McNeil. The
principal place of business for the Partnership and the General Partner is 13760
Noel Road, Suite 700, LB70, Dallas, Texas 75240.
In the opinion of management, the financial statements reflect all adjustments
necessary for a fair presentation of the Partnership's financial position and
results of operations. All adjustments were of a normal recurring nature.
However, the results of operations for the six months ended June 30, 1995, are
not necessarily indicative of the results to be expected for the year ending
December 31, 1995.
NOTE 2.
-------
The financial statements should be read in conjunction with the financial
statements contained in the Partnership's Annual Report on Form 10-K for the
year ended December 31, 1994, and the notes thereto, as filed with the
Securities and Exchange Commission, which is available upon request by writing
to McNeil Pacific Investors Fund 1972, c/o McNeil Real Estate Management, Inc.,
Investor Services, 13760 Noel Road, Suite 700, LB70, Dallas, Texas 75240.
NOTE 3.
-------
Certain prior period amounts within the accompanying financial statements have
been reclassified to conform with current year presentation.
NOTE 4.
-------
The General Partner is entitled to receive a partnership management fee equal to
9.5% of distributions of cash from operations when distributable cash from
operations is distributed to the limited partners. No partnership management
fees were incurred during the six month periods ended June 30, 1995 and 1994.
The Partnership pays property management fees equal to 6% of the gross rental
receipts of the Partnership's property to McNeil Real Estate Management, Inc.
("McREMI"), an affiliate of the General Partner, for providing property
management and leasing services for the Partnership's property. Prior to
December 31, 1994, the Partnership paid property management fees equal to 5% of
the gross rental receipts of the Partnership's properties.
The Partnership reimburses McREMI for its costs, including overhead, of
administering the Partnership's affairs.
<PAGE>
Compensation and reimbursements paid to or accrued for the benefit of the
General Partner and its affiliates are as follows:
<TABLE>
<CAPTION>
Six Months Ended
June 30,
-------------------------------
1995 1994
------- --------
<S> <C> <C>
Property management fees - affiliates................ $40,463 $ 38,881
Charged to general and administrative -
affiliates:
Partnership administration........................ 40,554 29,697
Charged to gain on sale of real estate:
Brokerage commission.............................. - 81,000
------ -------
$81,017 $149,578
====== =======
</TABLE>
NOTE 5.
-------
On March 17, 1994, the Partnership sold its investment in Pacesetter Apartments
to an unaffiliated buyer for a cash sales price of $4,050,000. Cash proceeds
from the transaction, as well as the gain on sale, are detailed below.
<TABLE>
<CAPTION>
Proceeds
Gain on Sale from Sale
------------ -----------
<S> <C> <C>
Sales price.......................................... $ 4,050,000 $ 4,050,000
Selling costs........................................ (300,692) (300,692)
Basis of real estate sold............................ (3,174,607)
----------
Gain on sale of real estate investment............... $ 574,701
==========
Proceeds from sale of real ----------
estate investment................................. 3,749,308
Retirement of mortgage note payable.................. (2,094,135)
----------
Net cash proceeds.................................... $ 1,655,173
==========
</TABLE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
------- ---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
Since the sale of Pacesetter Apartments on March 17, 1994, the focus of the
Partnership's efforts have been directed to the renovation program at Palm Bay
Apartments (formerly known as Greentree Apartments). From the beginning of 1994
through the second quarter of 1995, the Partnership has completed capital
renovation projects totaling $896,528. To date, occupancy at Palm Bay Apartments
has not recovered as much as was hoped. At June 30, 1995, occupancy at Palm Bay
Apartments stood at 72% down from 79% at March 31, 1995 and from 82% at December
31, 1994. As the capital renovation program winds down, the focus of the
Partnership will turn to leasing the restored units and increasing operating
efficiencies at the property.
RESULTS OF OPERATIONS
---------------------
The Partnership reported a loss of $87,417 for the first six months of 1995
compared to net income of $496,173 for the first six months of 1994. The results
for the first six months of 1994 included a one-time gain of $574,701 from the
sale of Pacesetter Apartments. Rental revenues and operating expenses were both
lower for the six months ending June 30, 1995 because the 1995 figures do not
include rental revenues or expenses of Pacesetter Apartments as do the 1994
figures.
Unlike the year-to-date figures, the second quarter figures from both 1995 and
1994 contain only operating results from Palm Bay Apartments. The net loss for
the second quarter of 1995 increased to $73,724 from the $56,223 loss for the
second quarter of 1994. During the second quarter, Palm Bay expenses increased
faster than did revenues from the property.
Revenues:
Rental revenues decreased $75,095 or 9.5% for the first six months of 1995
compared to the first six months of 1994. The decrease is entirely attributable
to the sale of Pacesetter Apartments in March 1994. Rental revenue from Palm Bay
Apartments increased $68,021 or 10.7%. For the second quarter, rental revenue
from Palm Bay Apartments increased 8.7%. The Partnership was able to increase
base rental rates due to the major capital improvements undertaken at Palm Bay
Apartments. Besides improving the overall condition of the property, the capital
improvements also restored approximately 70 out-of-service units to leasable
condition. The increase in base rental rates was offset by a decrease in the
occupancy rate. The occupancy rate at June 30, 1995 was 72%.
The Partnership has not been able to increase occupancy rates or base rental
rates as quickly as was hoped. Several apartment communities in the immediate
area have also undergone major rehabilitation, and several of the competing
apartment communities are able to offer their units at rates that have been
subsidized by various government programs. The effect of the competition has
restricted the increase in rental revenue that was otherwise expected from Palm
Bay Apartments. Management is implementing various marketing strategies to
attempt to improve the revenue growth of the property.
Interest revenues increased to $6,354 for the six months ended June 30, 1995.
The Partnership had substantially more funds invested in interest-bearing
accounts due to the sale of Pacesetter Apartments in the first quarter of 1994.
Revenues for 1994 also include the one-time gain on sale of Pacesetter
Apartments.
Expenses:
Partnership expenses decreased $59,852 or 6.8% for the six months ended June 30,
1995. However, after excluding expenses pertaining to Pacesetter Apartments,
expenses increased $115,952 or 19% for the six months ended June 30, 1995.
Second quarter results, which do not include any expenses related to Pacesetter
Apartments, show an increase in expenses of 43,837 or 11.5%. The increases at
Palm Bay Apartments were concentrated in depreciation and repair and
maintenance.
The largest increase, on both an absolute and percentage basis, was the increase
in depreciation expense. For the six months and the three months ended June 30,
1995 depreciation expense at Palm Bay Apartments increased $71,492 or 78% and
$39,212 or 86%, respectively. The increase in depreciation expense is due to the
continuing investment of Partnership resources into capital improvements. In the
year since June 30, 1994, the Partnership has invested $773,795 in capital
improvements. These capital improvements are generally being depreciated over
lives ranging from five to ten years.
Repair and maintenance expenses at Palm Bay Apartments increased $20,733 or
15.1% and $7,935 or 9.4%, respectively, for the six months and three months
period ended June 30, 1995. Increases in repairs and maintenance expense are
attributable to costs incurred preparing out-of-service units for rental. Repair
and maintenance expenses will likely remain at a relatively high level until the
occupancy rate at Palm Bay Apartments increases to an acceptable level.
Property management fees for the six months and three months ended June 30, 1995
at Palm Bay Apartments increased $9,263 or 30% and $3,414 or 22%. An increase in
rental receipts, upon which such fees are based, and an increase in the
management fee percentage to 6% from 5% (effective January 1, 1995) were the
reasons for the increase.
Property tax expense decreased $29,475 for the six month ended June 30, 1995.
Most of the decrease was due to the elimination of property taxes at Pacesetter
Apartments. However, property taxes also decreased $10,002 or 14.5% at Palm Bay
Apartments due to tax appeals by the Partnership to local taxing jurisdictions
that resulted in lower assessments.
The Partnership incurred reduced interest expense for the second quarter of 1995
compared to the second quarter of 1994. Again, the reason was the elimination of
interest charges pertaining to the Pacesetter mortgage note.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
Cash flows used in operating activities by the Partnership was $15,274 for
the first six months of 1995, compared to $20,275 generated by operations
for the first six months of 1994. Elimination of operations at Pacesetter
Apartments immediately improved the operating cash flow of the Partnership
during the second quarter of 1994. The Partnership anticipates that the
capital renovation projects at Palm Bay Apartments will begin to yield
improved cash flow from operations as the restored and refurbished units
are leased to new tenants. However, cash flow from Palm Bay Apartments will
not be sufficient to fund both operating expenses and debt service requirements
until the occupancy rate of Palm Bay Apartments improves. For the balance of
1995, the Partnership will use its cash reserves to fund debt service
requirements if cash from operations is insufficient.
Cash paid to affiliates in 1995 includes an $81,000 brokerage commission, paid
in January, related to the sale of Pacesetter Apartments in 1994. This item
accounts for the $118,565 increase in cash paid to affiliates in 1995 compared
to 1994.
The sale of Pacesetter Apartments in March 1994, provided the largest change in
the cash flows of the Partnership. Cash generated from the sale, after repayment
of the Pacesetter mortgage note, totaled $1,655,173. The Partnership used these
proceeds to fund capital improvements at Palm Bay Apartments and to improve the
Partnership's cash reserves. Cash expended for capital improvements at Palm Bay
Apartments increased to $248,758 for the second quarter of 1995 from $122,733
for the second quarter of 1994.
The financing activities of the Partnership, aside from the March 1994
retirement of the Pacesetter mortgage note, consist of the repayment of the Palm
Bay mortgage note through monthly debt service payments. These payments are
scheduled to gradually increase until June 1997, when the Palm Bay mortgage note
matures.
Short Term Liquidity:
Due to the sale of Pacesetter Apartments on March 17, 1994, the Partnership
began 1995 with adequate cash reserves. A substantial portion of the proceeds
from the sale of Pacesetter Apartments have been invested in capital
improvements at Palm Bay Apartments. The Partnership has budgeted $302,000 of
capital improvements for 1995 in addition to the $678,720 of capital
improvements made during 1994 and 1993. The capital improvements at Palm Bay
Apartments are necessary to allow the property to increase its rental revenues
and become competitive in the Orlando sub-market where the property is located.
At June 30, 1995, the Partnership held $736,635 of cash and cash equivalents,
down $325,726 from the balance at the end of 1994. The Partnership will use its
cash reserves, if necessary to complete the capital renovation projects at Palm
Bay Apartments. The General Partner considers the Partnership's cash reserves
adequate for such uses for the balance of 1995.
Long Term Liquidity:
For the long term, property operations will remain the primary source of funds.
While the present outlook for the Partnership's liquidity is favorable, market
conditions may change and property operations may deteriorate. The General
Partner expects that the capital improvements at Palm Bay Apartments will yield
improved cash flow from operations in 1995. The Partnership has budgeted an
additional $53,000 of capital improvements for the balance of 1995. If the
Partnership's cash position deteriorates, the General Partner may elect to defer
certain of the capital improvements, except where such improvements are expected
to increase the competitiveness or marketability of the Partnership's property.
The General Partner has established a revolving credit facility not to exceed
$5,000,000 in the aggregate which is available on a "first-come, first-served"
basis to the Partnership and other affiliated partnerships if certain conditions
are met. However, there is no assurance that the Partnership will receive
additional funds under the facility because no amounts will be reserved for any
particular partnership. As of June 30, 1995, $2,362,004 remained available for
borrowing under the facility; however, additional funds could become available
as other partnerships repay borrowings.
As a additional source of liquidity, the General Partner may attempt to
refinance the Palm Bay mortgage note. The General Partner estimates that such a
refinancing could yield proceeds to the Partnership in excess of the amount
needed to retire the current mortgage note. However, there can be no guarantee
that the Partnership will be able to obtain such mortgage refinancing on terms
or in amounts favorable to the Partnership, or that the cash proceeds from such
refinancing could be timed to coincide with the liquidity needs of the
Partnership.
Distributions:
Distributions to partners have been suspended as part of the General Partner's
policy of maintaining adequate cash reserves. Distributions to Unit holders will
remain suspended for the foreseeable future. The General Partner will continue
to monitor the cash reserves and working capital needs of the Partnership to
determine when cash flows will support distributions to the Unit holders.
<PAGE>
PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
------- -----------------
On an unsolicited basis, High River Limited Partnership ("High River"), a
partnership controlled by Carl Icahn, announced that it has commenced an offer
to purchase 6,189 units of limited partnership interest in the Partnership
(approximately 45 percent of the Partnership's units) at $110 per unit. High
River has stated that the offer is being made as "an investment." The tender
offer is due to expire on August 31, 1995, unless extended.
The General Partner, with assistance from its advisors, is in the process of
evaluating the tender offer from a number of important standpoints and will
report to the limited partners its position with respect to such offer.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
------- --------------------------------
(a) Exhibits.
<TABLE>
<CAPTION>
Exhibit
Number Description
<S> <C>
3. Restated Certificate and Agreement of
Limited Partnership dated of March 8,
1972. (1)
4. Amendment to Restated Certificate and
Agreement of Limited Partnership dated
March 30, 1992. (2)
11. Statement regarding computation of net
income per limited partnership unit: Net
income per limited partnership unit is
computed by dividing net income allocated to
the limited partners by the number of
limited partnership units outstanding. Per
unit information has been computed based on
13,752.5 and 13,757.5 limited partnership
units outstanding in 1995 and 1994,
respectively.
27. Financial Data Schedule for the quarter
ended June 30, 1995.
</TABLE>
(1) Incorporated by reference to the Annual Report of Registrant on Form
10-K for the period ended December 31, 1990, as filed on March 29,
1991.
(2) Incorporated by reference to the Current Report on Form 8-K filed by
the Registrant with the Securities and Exchange Commission on April
10, 1992.
(b) Reports on Form 8-K. There were no reports on Form 8-K filed during the
quarter ended June 30, 1995.
<PAGE>
McNEIL PACIFIC INVESTORS FUND 1972
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:
<TABLE>
<CAPTION>
McNEIL PACIFIC INVESTORS FUND 1972
By: McNeil Partners, L.P., General Partner
By: McNeil Investors, Inc., General Partner
<S> <C>
August 14, 1995 By: /s/ Donald K. Reed
-------------------- ------------------------------------------------------
Date Donald K. Reed
President and Chief Executive Officer
August 14, 1995 By: /s/ Robert C. Irvine
-------------------- ------------------------------------------------------
Date Robert C. Irvine
Chief Financial Officer of McNeil Investors, Inc.
Principal Financial Officer
August 14, 1995 By: /s/ Brandon K. Flaming
-------------------- ------------------------------------------------------
Date Brandon K. Flaming
Chief Accounting Officer of McNeil Real Estate
Management, Inc.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 736,635
<SECURITIES> 0
<RECEIVABLES> 9,496
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 7,154,335
<DEPRECIATION> (829,116)
<TOTAL-ASSETS> 7,300,046
<CURRENT-LIABILITIES> 0
<BONDS> 2,225,647
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 4,913,451
<SALES> 713,034
<TOTAL-REVENUES> 735,848
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 725,248
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 98,017
<INCOME-PRETAX> (87,417)
<INCOME-TAX> 0
<INCOME-CONTINUING> (87,417)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (87,417)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
