UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark one)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 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 0-11176
NTS-PROPERTIES III
(Exact name of registrant as specified in its charter)
Georgia 61-1017240
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
10172 Linn Station Road
Louisville, Kentucky 40223
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number,
including area code (502) 426-4800
Not Applicable
Former name, former address and former fiscal year,
if changed since last report
Indicate by check mark whether the registrant (l) 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>
TABLE OF CONTENTS
Pages
PART I
Item 1. Financial Statements
Balance Sheets and Statement of Partners' Equity
as of March 31, 1995 and December 31, 1994 2
Statements of Operations
For the three months ended March 31, 1995 and 1994 3
Statements of Cash Flows
For the three months ended March 31, 1995 and 1994 4
Notes To Financial Statements 5-6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7-11
PART II
1. Legal Proceedings 12
2. Changes in Securities 12
3. Defaults upon Senior Securities 12
4. Submission of Matters to a Vote of Security Holders 12
5. Other Information 12
6. Exhibits and Reports on Form 8-K 12
Signatures 13
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
NTS-PROPERTIES III
BALANCE SHEETS AND STATEMENT OF PARTNERS' EQUITY
<CAPTION>
As of As of
March 31, 1995 December 31, 1994*
<S> <C> <C>
ASSETS
Cash and equivalents $ 816,831 $ 734,203
Cash and equivalents - restricted 315,248 293,623
Accounts receivable, net of
allowance for doubtful accounts
of $77,102 (1995) and $53,828
(1994) 281,412 339,477
Land, buildings and amenities, net 10,099,487 10,242,936
Other assets 279,094 252,047
------------ ------------
$ 11,792,072 $ 11,862,286
============ ============
LIABILITIES AND PARTNERS' EQUITY
Mortgages payable $ 7,037,325 $ 7,060,479
Accounts payable - operations 110,112 75,234
Accounts payable - construction 83,337 152,093
Distributions payable 39,000 39,000
Security deposits 94,452 84,044
Other liabilities 62,521 16,190
----------- -----------
7,426,747 7,427,040
Partners' equity 4,365,325 4,435,246
----------- -----------
$ 11,792,072 $ 11,862,286
============ ============
</TABLE>
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
<S> <C> <C> <C>
PARTNERS' EQUITY
Initial equity $ 15,600,000 $ 8,039,710 $ 23,639,710
Adjustment to historical
basis -- (5,455,030) (5,455,030)
------------ ------------ ------------
15,600,000 2,584,680 18,184,680
Net loss - prior years (362,006) (2,092,741) (2,454,747)
Net loss - current year (6,020) (24,901) (30,921)
Cash distributions
declared to date (11,126,702) (206,985) (11,333,687)
------------ ------------ ------------
Balances at March 31,
1995 $ 4,105,272 $ 260,053 $ 4,365,325
============ ============ ============
<FN>
* Reference is made to the audited financial statements in the Form 10-K
as filed with the Commission on March 31, 1995.
</TABLE>
<PAGE>
<TABLE>
NTS-PROPERTIES III
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Ended
March 31,
1995 1994
<S> <C> <C>
REVENUES:
Rental income, net of provision
for doubtful accounts of $24,474
(1995) and $4,208 (1994) $ 681,690 $ 658,356
Rental income - affiliated 78,165 80,255
Interest and other income 11,839 1,222
---------- ----------
771,694 739,833
EXPENSES:
Operating expenses 157,409 161,490
Operating expenses - affiliated 87,826 92,667
Write-off of unamortized tenant
improvements 8,242 --
Interest expense 152,697 146,191
Management fees 38,490 35,762
Real estate taxes 54,298 51,848
Professional and administrative
expenses 15,117 11,719
Professional and administrative
expenses - affiliated 36,338 33,400
Depreciation and amortization 252,198 250,228
---------- ----------
802,615 783,305
---------- ----------
Net loss $ (30,921) $ (43,472)
========== ==========
Net income (loss) allocated to
limited partners $ (6,020) $ (18,259)
========== ==========
Net income (loss) loss per limited
partnership unit $ (0.39) $ (1.17)
========== ==========
Weighted average number of units 15,600 15,600
========== ==========
</TABLE>
<PAGE>
<TABLE>
NTS-PROPERTIES III
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Ended
March 31,
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (30,921) $ (43,472)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Provision for doubtful accounts 24,474 4,208
Write-off of unamortized tenant
improvements 8,242 --
Depreciation and amortization 252,198 250,228
Change in assets and liabilities:
Accounts receivable 33,591 (26,129)
Other assets (32,168) (26,179)
Accounts payable - operations 34,878 3,897
Security deposits 10,408 943
Other liabilities 46,331 49,621
----------- -----------
Net cash provided by operating
activities 347,033 213,117
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to land, buildings and
amenities (111,870) (81,121)
Increase in cash and equivalents -
restricted (21,625) (19,500)
Increase (decrease) in accounts
payable - construction (68,756) 54,186
----------- -----------
Net cash used in investing
activities (202,251) (46,435)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on mortgage
payable (23,154) (21,143)
Cash distributions (39,000) --
----------- -----------
Net cash used in financing
activities (62,154) (21,143)
----------- -----------
Net increase in cash and
equivalents 82,628 145,539
CASH AND EQUIVALENTS, beginning
of period 734,203 444,495
----------- -----------
CASH AND EQUIVALENTS, end of period $ 816,831 $ 590,034
=========== ===========
Interest paid on a cash basis $ 152,085 $ 146,351
=========== ===========
</TABLE>
<PAGE>
NTS-PROPERTIES III
NOTES TO FINANCIAL STATEMENTS
The financial statements included herein should be read in conjunction with
the Partnership's 1994 Annual Report. In the opinion of the general
partner, all adjustments (only consisting of normal recurring accruals)
necessary for a fair presentation have been made to the accompanying
financial statements for the three months ended March 31, 1995 and 1994.
1. Cash and Equivalents - Restricted
Cash and equivalents - restricted represent escrow funds which are to be
released as the HVAC system and asphalt paving at Peachtree Corporate
Center are replaced.
2. Mortgages Payable
Mortgages payable consist of the following:
March 31, December 31,
1995 1994
Mortgage payable to an insurance
company bearing interest at 9.125%,
maturing November 1, 1998, secured
by land and building $ 2,537,325 $ 2,560,479
Mortgage payable to an insurance
company maturing June 1, 2001,
secured by land and buildings,
bearing a variable interest rate
based on the 10-year treasury bill
rate plus 60 basis points. The rate
is adjusted quarterly (not to exceed
11.65% or be less than 7.65%). The
current rate at March 31, 1995 is 8.41% 4,500,000 4,500,000
----------- -----------
$ 7,037,325 $ 7,060,479
=========== ===========
3. Related Party Transactions
Property management fees of $38,490 and $35,762 for the three months
ended March 31, 1995 and 1994, respectively, were paid to NTS
Development Company, an affiliate of the general partner, pursuant to an
agreement with the Partnership. The fee is equal to 5% of gross
revenues from the Partnership's properties. Also permitted by the
partnership agreement, NTS Development Company will receive a repair and
maintenance fee equal to 5.9% of costs incurred which relate to capital
improvements. The Partnership has incurred $5,533 and $4,531 as a
repair and maintenance fee during the three months ended March 31, 1995
and 1994, respectively, and has capitalized this cost as a part of land,
buildings and amenities. As permitted by the partnership agreement, the
Partnership also was charged the following amounts from NTS Development
Company for the three months ended March 31, 1995 and 1994. These
charges include items which have been expensed as operating expenses -
affiliated or professional and administrative expenses - affiliated and
items which have been capitalized as other assets or as land, buildings
and amenities.
<PAGE>
3. Related Party Transactions - Continued
These charges were as follows:
1995 1994
Leasing agents $ 39,184 $ 39,965
Administrative 44,132 41,194
Property manager 50,325 47,363
Other 2,623 2,380
--------- ---------
$ 136,264 $ 130,902
========= =========
During the three months ended March 31, 1995 and 1994, NTS Development
Company leased approximately 23,000 square feet of the available space
in the Plainview Plaza II property at a base rent of approximately
$13.50 per square foot. The Partnership has received approximately
$80,000 in rental payments from NTS Development Company during the three
months ended March 31, 1995 and 1994. The lease expires in February
1996.
4. Commitments
As of March 31, 1995, the Partnership had the following material
commitments for major capital improvements. At Plainview Plaza II, the
Partnership has a material commitment for approximately $80,000 to
renovate common area lobbies. The project is to include an upgrade of
current restroom facilities, improvement of handicap restroom
facilities, new carpet and wallcoverings. At Peachtree Corporate
Center, the Partnership has material commitments to replace the asphalt
paving for approximately $37,000 and to paint the business park's
building exteriors for approximately $38,000. The Partnership had no
other material commitments for renovations or capital improvements as of
March 31, 1995.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
The occupancy levels at the Partnership's properties as of March 31 were as
follows:
1995 1994
Plainview Plaza II 85% 83%
Plainview Triad North 95% 93%
Peachtree Corporate Center 85% 80%
The rental and other income generated by the Partnership's properties for
the three months ended March 31 was as follows:
1995 1994
Plainview Plaza II $285,163 $271,188
Plainview Triad North $226,513 $226,535
Peachtree Corporate Center $254,475 $241,965
Plainview Plaza II's occupancy increased 2% from March 31, 1994 to March 31,
1995 as a result of two new leases totalling approximately 5,600 square
feet. Partially offsetting the new leases are two tenants, who had occupied
approximately 3,000 square feet, vacating at the end of the lease terms.
Average occupancy at Plainview Plaza II increased from 83% in 1994 to 86%
in 1995. The increase in rental and other income at Plainview Plaza II for
the three months ended March 31, 1995 as compared to March 31, 1994 is due
to the increase in average occupancy.
The 2% increase in occupancy at Plainview Triad North from March 31, 1994
to March 31, 1995 is the result of two new leases totalling approximately
7,100 square feet, both of which represent expansions by current tenants.
Partially offsetting the new leases are three tenants, who had occupied
approximately 4,600 square feet, vacating at the end of the lease terms.
Average occupancy at Plainview Triad North for the first quarter increased
from 92% in 1994 to 93% in 1995. Rental and other income remained fairly
constant for the three month period due to the fact that the increase in
rental and other income which resulted from an increase in average occupancy
was offset by an increase in the provision for doubtful accounts.
Peachtree Corporate Center's occupancy increased 5% from March 31, 1994 to
March 31, 1995 due to 17 new leases totalling approximately 41,000 square
feet. Of this total, approximately 16,000 square feet represent expansions
by six current tenants. Partially offsetting the new leases are 16 tenant
move-outs totalling approximately 36,000 square feet. Approximately 21,000
square feet of this total represents 10 tenants who vacated and ceased
making rental payments in breach of the lease terms due principally to
bankruptcies. Accrued income associated with these leases was not
significant. The remaining 14,800 square feet represents six tenants who
vacated at the end of the lease terms.
<PAGE>
Results of Operations - Continued
Rental and other income at Peachtree Corporate Center increased for the
three months ended March 31, 1995 as compared to the same period in 1994 as
a result of an increase in average occupancy - 82% (1995) compared to 79%
(1994). Peachtree Corporate Center receives rental income from the leasing
of both office space and warehouse space. Office space rents for
approximately $7.00 to $9.00 per square foot compared to $3.50 to $4.50 per
square foot for warehouse space. Another factor contributing to the
increase in rental and other income from the 1994 period to the 1995 period
is an increase in rent received from the rental of office space due to an
increase in the amount of office space leased in 1995 over 1994. Partially
offsetting the increase in rental and other income is a decrease in rental
income received from the rental of warehouse space due to a decrease in the
amount of warehouse space leased in 1995 over 1994. The increase in rental
and other income is also partially offset by an increase in the provision
for doubtful accounts and a decrease in the average rental rate realized
from office space leased.
In cases of tenants abandoning the premises, the Partnership pursues
collection through the use of collection agencies or other remedies
available by law when practical.
Current occupancy levels are considered adequate to continue the operation
of the Partnership's properties without the need for any additional
financing.
Interest and other income includes interest income earned from short-term
investments made by the Partnership with excess cash and from funds escrowed
for the replacement of the HVAC system and asphalt paving at Peachtree
Corporate Center (see the Liquidity and Capital Resources section for a
further discussion of these Escrow Funds). Interest income increased for
the three months ended March 31, 1995 as compared to the same period in 1994
as a result of an increase in interest earned on the Escrow Funds and an
increase in excess cash available for investment.
Operating expenses decreased for the three months ended March 31, 1995 as
compared to the same period in 1994 as a result of decreased snow removal
costs at Plainview Plaza II and Plainview Triad North and decreased utility
costs at Plainview Plaza II. Partially offsetting the decrease in operating
expenses for the three month period is an increase in utility costs at
Plainview Triad North and increased HVAC and general building repairs at
Peachtree Corporate Center.
The decrease in operating expenses - affiliated for the three months ended
March 31, 1995 as compared to the same period in 1994 is due to a decrease
in leasing salaries at all of the Partnership's properties and decreased
property management salaries at Peachtree Corporate Center and Plainview
Plaza II.
The 1995 write-off of unamortized tenant improvements can be attributed to
Peachtree Corporate Center. Changes to current tenant improvements are a
typical part of any lease negotiation. Improvements generally include a
revision to the current floor plan to accommodate a tenant's needs, new
carpeting and paint and/or wallcovering. In order to complete the
renovation, it is sometimes necessary to replace improvements which have not
been fully depreciated. This results in a write-off of unamortized tenant
improvements.
<PAGE>
Results of Operations - Continued
The increase in interest expense for the three months ended March 31, 1995
as compared to the same period in 1994 is due to an increase in the interest
rate on the $4,500,000 mortgage payable - 8.41% (1995) compared to 7.65%
(1994). The interest rate on this note adjusts quarterly to 60 basis points
over the 10-year treasury bill rate (not to exceed 11.65% or be less than
7.65%). The increase in interest expense for the three month period is
partially offset by a decrease in interest expense on the $2,537,325
mortgage payable due to continued principal paydowns. See Note 2 of the
Partnership's financial statements for details regarding the Partnership's
debt.
Management fees are calculated as a percentage of cash collections, however,
revenue for reporting purposes is on the accrual basis. As a result, the
fluctuations of revenues between periods will differ from the fluctuations
of management fee expense.
The increase in real estate taxes for the three months ended March 31, 1995
as compared to the same period in 1994 is due to an increase in the
assessment for Plainview Triad North and an increase in tax rates at all of
the Partnership's properties. Partially offsetting the increase in real
estate taxes for the three month period is a decrease in the assessment for
Plainview Plaza II. The assessment at Peachtree Corporate Center was
unchanged.
The increase in professional and administrative expenses for the three
months ended March 31, 1995 as compared to the same period in 1994 is due
to increased outside accounting fees.
The increase in professional and administrative expenses - affiliated for
the three months ended March 31, 1995 as compared to the same period in 1994
is primarily due to increased accounting salaries.
The change in depreciation and amortization for the three months ended March
31, 1995 as compared to the same period in 1994 was not significant.
Liquidity and Capital Resources
The Partnership had cash flow from operations of $347,033 and $213,117 for
the three months ended March 31, 1995 and 1994, respectively. These funds,
in conjunction with cash on hand, were used to make a 1% (annualized)
distribution of $39,000 (1995). The annualized distribution rate is
calculated as a percent of the initial equity. The limited partners
received 100% of these distributions. The Partnership did not make a cash
distribution during the three months ended March 31, 1994. The Partnership
determined it necessary to temporarily suspend cash distributions until
adequate cash reserves for future leasing costs, tenant finish and other
capital improvements were established, and sufficient cash was being
generated from operations which, in management's opinion, warranted a cash
distribution.
As of March 31, 1995, the Partnership had a mortgage payable to an insurance
company in the amount of $4,500,000. The mortgage bears a variable interest
rate which adjusts quarterly to 60 basis points over the 10-year treasury
bill rate. At no time will the rate exceed 11.65% or be less than 7.65% per
annum. The current rate at March 31, 1995 was 8.41%. The loan is secured
by a first mortgage on Plainview Triad North and Peachtree Corporate Center
with a second position behind the holder of the permanent mortgage on
Plainview Plaza II. The unpaid balance of the loan is due June 1, 2001.
<PAGE>
Liquidity and Capital Resources - Continued
In accordance with the loan agreement, the Partnership is required to place
in an interest bearing escrow account $6,500 per month. These Escrow Funds
will be released as the HVAC system and asphalt paving at Peachtree
Corporate Center is replaced. The HVAC system is designed in such a manner
that each suite's system is separate in structure; therefore, it is not
necessary to replace the entire system at one time. The Partnership
anticipates replacing the asphalt paving at Peachtree Corporate Center in
the Spring of 1995 at a cost of approximately $37,000. The balance in the
escrow account at March 31, 1995 was $315,248.
As of March 31, 1995, the Partnership also had a mortgage payable to an
insurance company in the amount of $2,537,325. The mortgage bears a fixed
interest rate of 9.125% and is due November 1, 1998. The outstanding
balance at maturity based on the current rate of amortization will be
$2,140,539.
The primary source of future liquidity and distributions is expected to be
derived from cash generated by the Partnership's properties after adequate
cash reserves are established for future leasing and tenant finish costs.
The majority of the Partnership's cash flow is derived from operating
activities. Cash flows used in investing activities are for tenant finish
improvements and reductions in accounts payable - construction (1995) and
are funded by operating activities. Changes to current tenant improvements
are a typical part of any lease negotiation. Improvements generally include
a revision to the current floor plan to accommodate a tenant's needs, new
carpeting and paint and/or wallcovering. The extent and cost of these
improvements are determined by the size of the space and whether the
improvements are for a new tenant or incurred because of a lease renewal.
Cash flows used in investing activities also include cash which is being
escrowed for the replacement of the HVAC system and asphalt paving at
Peachtree Corporate Center. Cash flows provided by investing activities are
from increases in accounts payable - construction (1994). Cash flows used
in financing activities include cash distributions and principal payments
on the $2.5 million mortgage payable. The Partnership does not expect any
material changes in the mix and relative cost of capital resources.
In the next 12 months, the General Partner expects a demand on future
liquidity as a result of 78,275 square feet in leases expiring from April
1, 1995 through March 31, 1996 (Plainview Plaza II - 35,797 square feet,
Plainview Triad North - 8,975 square feet and Peachtree Corporate Center -
33,503 square feet). At this time, the future leasing and tenant finish
costs which will be required to renew the current leases or obtain new
tenants are unknown. It is anticipated that the cash flow from operations
and cash reserves will be sufficient to meet the needs of the Partnership.
The General Partner also anticipates a demand on future liquidity in the
next 12 months, as a result of the Partnership's plans to renovate the
common area lobbies at Plainview Plaza II. The project is to include an
upgrade of current restroom facilities, improvement of handicap restroom
facilities, new carpet and wallcoverings. The project is anticipated to
cost approximately $190,000. As of March 31, 1995 the Partnership has a
material commitment of approximately $80,000 in connection with the project.
As of March 31, 1995, the Partnership had a material commitment of
approximately $37,000 to replace the asphalt paving at Peachtree Corporate
Center, of which approximately $12,000 has been incurred. The Property
Manager had anticipated completing this project during the fourth quarter
<PAGE>
Liquidity and Capital Resources - Continued
of 1994. However, due to inclement weather, the project has been deferred
until the Spring of 1995. The source of funds for this project will be the
Escrow Funds which has a balance of $315,248 at March 31, 1995. This escrow
fund is a requirement of the $4,500,000 mortgage payable (see the prior
discussion of this mortgage payable on pages 9 and 10).
As of March 31, 1995, the Partnership also had a material commitment of
approximately $38,000 in connection with the painting of all building
exteriors at Peachtree Corporate Center. Through March 31, 1995,
approximately $17,000 of the project had been incurred and paid. This
project is expected to be completed during the second quarter of 1995. The
source of funds for this project is expected to be cash flow from operations
and/or cash reserves.
The table below presents that portion of the distributions that represent
a return of capital on a Generally Accepted Accounting Principle basis for
the three months ended March 31, 1995 and 1994. The General Partner did not
receive a distribution during these periods. Distributions were funded by
cash flow derived from operating activities.
Net Income Return
(Loss) Cash of
Allocated Distributions Capital
Limited Partners:
1995 $ (6,020) $ 39,000 $ 39,000
1994 (18,259) -- --
The following describes the efforts being taken by the Partnership to
increase the occupancy levels at the Partnership's properties. At Peachtree
Corporate Center in Norcross, Georgia, the Partnership has an on-site
leasing agent, an employee of NTS Development Company (an affiliate of the
general partner), who makes calls to potential tenants, negotiates lease
renewals with current tenants and manages local advertising with the
assistance of NTS Development Company's marketing staff. The leasing and
renewal negotiations for Plainview Plaza II and Plainview Triad North are
handled by leasing agents, employees of NTS Development Company, located in
Louisville, Kentucky. The leasing agents are located in the same city as
both commercial properties. All advertising for the Louisville properties
is also coordinated by NTS Development Company's marketing staff located in
Louisville, Kentucky.
Leases at all the Partnership's properties provide for tenants to contribute
toward the payment of increases in common area maintenance expenses,
insurance, utilities and real estate taxes. This lease provision should
protect the Partnership's operations from the impact of inflation and
changing prices.
<PAGE>
PART II. OTHER INFORMATION
1. Legal Proceedings
None
2. Changes in Securities
None
3. Defaults upon Senior Securities
None
4. Submission of Matters to a Vote of Security Holders
None
5. Other Information
None
6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27. Financial Data Schedule
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the quarter
ended March 31, 1995.
<PAGE>
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.
NTS-PROPERTIES III
(Registrant)
BY:NTS-Properties Associates
BY:NTS Capital Corporation,
General Partner
John W. Hampton
Senior Vice President
Date: May 11, 1995
<PAGE>
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.
NTS-PROPERTIES III
(Registrant)
BY:NTS-Properties Associates
BY:NTS Capital Corporation,
General Partner
/s/ John W. Hampton
John W. Hampton
Senior Vice President
Date: May 11, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 1,132,079
<SECURITIES> 0
<RECEIVABLES> 281,412
<ALLOWANCES> 77,102
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 10,099,487
<DEPRECIATION> 0<F2>
<TOTAL-ASSETS> 11,792,072
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 7,037,325
<COMMON> 0
0
0
<OTHER-SE> 4,365,325
<TOTAL-LIABILITY-AND-EQUITY> 11,792,072
<SALES> 759,855
<TOTAL-REVENUES> 771,694
<CGS> 0
<TOTAL-COSTS> 598,463
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 24,474
<INTEREST-EXPENSE> 152,697
<INCOME-PRETAX> (30,921)
<INCOME-TAX> 0
<INCOME-CONTINUING> (30,921)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (30,921)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>The Partnership has an unclassified balance sheet; therefore, the value is $0.
<F2>This information is not disclosed in the Partnership's Form-10Q filing.
</FN>
</TABLE>
