<PAGE> 1
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 JUNE 30, 1999
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: 0-11779
S/M REAL ESTATE FUND VII, LTD.
Exact Name of Registrant as Specified in its Charter
<TABLE>
<S> <C>
Texas 75-1845682
----- ----------
(State or other jurisdiction of incorporation of organization) (I.R.S. Employer Identification No.)
5520 LBJ Freeway, Suite 500, Dallas, Texas 75240
------------------------------------------ -----
(Address of principal executive offices) (Zip code)
</TABLE>
(972) 404-7100
---------------------------------------
(Registrant's telephone number, including area code)
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 [ ]
<PAGE> 2
S/M REAL ESTATE FUND VII, LTD.
<TABLE>
<CAPTION>
BALANCE SHEETS AT JUNE 30, AT DECEMBER 31,
1999 1998
(UNAUDITED)
----------- --------------
<S> <C> <C>
ASSETS Real estate, at cost:
Land $ 962,216 $ 962,216
Building and improvements 7,774,817 7,707,214
----------- -----------
8,737,033 8,669,430
Less accumulated depreciation (5,741,256) (5,587,802)
----------- -----------
2,995,777 3,081,628
Cash and cash equivalents 159,310 274,735
Cash held in escrow 116,819 35,987
Restricted cash - replacement reserve 63,276 114,375
Accounts receivable 3,172 6,311
Other assets 77,768 72,108
----------- -----------
TOTAL ASSETS $ 3,416,122 $ 3,585,144
=========== ===========
LIABILITIES AND PARTNERS' DEFICIT
Liabilities:
First mortgage note payable $ 6,370,321 $ 6,400,000
Accounts payable:
Trade 22,008 13,374
Affiliates 40,665 60,070
Accrued expenses and other liabilities 106,245 52,796
----------- -----------
Total Liabilities 6,539,239 6,526,240
----------- -----------
Partners' Deficit:
General Partners (117,843) (116,023)
Limited Partners (11,080 units outstanding) (3,005,274) (2,825,073)
----------- -----------
Total Partners' Deficit (3,123,117) (2,941,096)
----------- -----------
TOTAL LIABILITIES AND PARTNERS' DEFICIT $ 3,416,122 $ 3,585,144
=========== ===========
</TABLE>
STATEMENT OF PARTNERS' DEFICIT (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
----------- ----------- -----------
<S> <C> <C> <C>
BALANCE AT DECEMBER 31, 1998 $ (116,023) $(2,825,073) $(2,941,096)
Net loss (1,820) (180,201) (182,021)
----------- ----------- -----------
BALANCE AT JUNE 30, 1999 $ (117,843) $(3,005,274) $(3,123,117)
=========== =========== ===========
</TABLE>
See accompanying notes to the financial statements. 2
<PAGE> 3
S/M REAL ESTATE FUND VII, LTD.
STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INCOME
Rental $ 331,126 $ 331,677 $ 657,574 $ 664,323
Interest and other 1,842 2,419 4,836 5,260
--------- --------- --------- ---------
Total Income 332,968 334,096 662,410 669,583
--------- --------- --------- ---------
EXPENSES
Property operating 201,436 136,022 374,780 306,370
Interest 115,469 153,271 229,937 306,882
Depreciation and amortization 100,775 98,109 200,780 191,838
General and administrative 11,337 44,238 38,934 68,126
--------- --------- --------- ---------
Total Expenses 429,017 431,640 844,431 873,216
--------- --------- --------- ---------
NET LOSS $ (96,049) $ (97,544) $(182,021) $(203,633)
========= ========= ========= =========
NET LOSS ALLOCATED:
To the General Partners $ (960) $ (975) $ (1,820) $ (2,036)
To the Limited Partners (95,089) (96,569) (180,201) (201,597)
--------- --------- --------- ---------
$ (96,049) $ (97,544) $(182,021) $(203,633)
========= ========= ========= =========
PER LIMITED PARTNERSHIP UNIT
(11,080 OUTSTANDING) $ (8.58) $ (8.72) $ (16.26) $ (18.19)
--------- --------- --------- ---------
</TABLE>
See accompanying notes to the financial statements. 3
<PAGE> 4
S/M REAL ESTATE FUND VII, LTD.
STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED JUNE 30, 1999 1998
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(182,021) $(203,633)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 200,780 191,838
Loss on retirement of asset 14,410 --
Increase (decrease) in cash arising from changes in operating assets and
liabilities:
Cash held in escrow (80,832) 34,804
Accounts receivable 3,139 52
Other assets (8,716) (12,464)
Accounts payable (10,771) 52,963
Accrued expenses and other liabilities 53,449 (66,490)
--------- ---------
Net cash used in operating activities (10,562) (2,930)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in restricted cash - replacement reserve 51,099 10,881
Additions to real estate (126,283) (22,139)
--------- ---------
Net cash used in investing activities (75,184) (11,258)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of principal on first mortgage note payable (29,679) (32,122)
Amortization of discount on second mortgage note payable -- 2,551
--------- ---------
Net cash used in financing activities (29,679) (29,571)
--------- ---------
Net decrease in cash and cash equivalents (115,425) (43,759)
Cash and cash equivalents, beginning of period 274,735 209,924
--------- ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 159,310 $ 166,165
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest $ 229,937 $ 306,882
--------- ---------
</TABLE>
See accompanying notes to the financial statements. 4
<PAGE> 5
S/M REAL ESTATE FUND VII, LTD.
NOTES TO THE FINANCIAL STATEMENTS
The quarterly unaudited financial statements for S/M Real Estate Fund VII, Ltd.
(the "Partnership") include all normal and recurring adjustments which are, in
the opinion of management, necessary to present a fair statement of financial
position as of June 30, 1999 and the results of operations for the three and six
months ended June 30, 1999 and 1998, cash flows for the six months ended June
30, 1999 and 1998, and the statement of partners' deficit for the six months
ended June 30, 1999. Results of operations for the period are not necessarily
indicative of the results to be expected for the full year.
No significant events have occurred subsequent to fiscal year 1998, and no
material contingencies exist which would require disclosure in this interim
report per Regulation S-X, Rule 10-01, Paragraph (a)(5).
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
During the six months ended June 30, 1999 and 1998, the General Partners or
their affiliates were reimbursed for Partnership administrative and operating
expenses, excluding property management fees, in the amounts of $5,006 and
$2,355, respectively. Management fees earned were $26,556 and $26,760 for the
six months ended June 30, 1999 and 1998, respectively.
The financial information included in this interim report as of June 30, 1999
and for the three and six months ended June 30, 1999 and 1998 has been prepared
by management without audit by independent public accountants. The Partnership's
1998 annual report contains audited financial statements including the notes to
the financial statements and should be read in conjunction with the financial
information contained in this interim report.
5
<PAGE> 6
S/M REAL ESTATE FUND VII, LTD.
PART I, ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
Liquidity and Capital Resources
In order to improve the financial condition of the Partnership and provide funds
for exterior improvements to the Partnership's sole portfolio property, Fifth
Avenue Apartments, located in San Antonio, Texas, on December 3, 1998, the
Partnership refinanced the mortgage note payable on Fifth Avenue (the
"Refinancing"). In accordance with the terms of the Loan Agreement between the
Partnership and General Electric Capital Corporation (the "Loan Agreement"), the
principal balance of the original mortgage totaling $6,400,000 is due January 1,
2009 and bears interest at a rate of 7.16% (the "New First Mortgage"). The
previous first and second mortgage (the "Previous Mortgage") had a combined
balance of $6,259,810 at an average interest rate of 8.97%. In spite of having a
slightly higher principal loan amount, the Partnership reduced the total debt
service payments in 1999 from $689,572 to $519,231, a reduction of $170,341.
Under the terms of the New First Mortgage with General Electric Capital
Corporation (the "Lender"), the Partnership is required to make fixed monthly
payments of principal and interest in the amount of $43,269 commencing on
February 1, 1999 until maturity on January 1, 2009, at which time the entire
outstanding principal balance and accrued interest is due. Under the terms of
the Loan Agreement, the Partnership was required to deposit certain amounts into
escrow for the completion of certain required repairs to Fifth Avenue.
Cash and cash equivalents totaled $159,310 at June 30, 1999, compared to
$274,735 at December 31, 1998. The $115,425 decrease is primarily attributable
to cash used for additions to real estate.
Cash held in escrow increased to $116,819 at June 30, 1999 from $35,987 at
December 31, 1998. The $80,832 increase is primarily attributable to
contributions to the insurance and real estate tax escrow, as required in the
Loan Agreement.
Restricted cash - replacement reserve decreased to $63,276 at June 30, 1999,
from $114,375 at December 31, 1998. The $51,099 decrease is primarily
attributable to the release of funds for the completion of certain required
repairs offset in part by contributions to the replacement reserve in accordance
with the terms of the Loan Agreement.
Other assets increased from $72,108 at December 31, 1998, to $77,768 at June 30,
1999. The increase is primarily due to an increase in prepaid insurance.
Accounts receivable totaled $3,172 at June 30, 1999, compared to $6,311 at
December 31, 1998. The decrease is primarily attributable to the timing of
tenant rental receipts. Accounts payable totaled $62,673 at June 30, 1999,
compared to $73,444 at December 31, 1998. The decrease is primarily attributable
to the timing of payments associated with fixed asset expenditures, repairs and
maintenance for apartment preparation and administrative expenses.
Accrued expenses and other liabilities totaled $106,245 at June 30, 1999,
compared to $52,796 at December 31, 1998. The change is primarily attributable
to the timing of payments for real estate taxes, audit and tax fees, and
administrative costs.
As a result of the recent Refinancing and anticipated reductions in general and
administrative expenses, the General Partners currently expect funds from
operations to be sufficient to pay all obligations for 1999, including debt
service. In the event of any cash flow deficits, it is expected that such
deficits will be funded by the Partnership's existing cash balances. However,
there can be no assurance that the Partnership will have sufficient cash to fund
such deficits.
Results of Operations
Operations resulted in net losses of $96,049 and $182,021 for the three and
six-month periods ended June 30, 1999, respectively, compared with net losses of
$97,544 and $203,633 for the three and six-month periods ended June 30, 1998.
The decrease for the six-months ended June 30, 1999 from the corresponding
period in 1998 is primarily attributable to a decrease in interest expense
associated with the Refinancing in December 1998, offset in part by an increase
in property operating expenses.
6
<PAGE> 7
S/M REAL ESTATE FUND VII, LTD.
Rental income totaled $331,126 and $657,574 for the three and six-month periods
ended June 30, 1999, respectively, compared to $331,677 and $664,323,
respectively, for the corresponding periods in 1998. Occupancy at Fifth Avenue
averaged approximately 96% and 94% for the three and six-month periods ended
June 30, 1999, respectively, compared to 94% for the corresponding periods in
1998. The average rental income per occupied square foot at Fifth Avenue was
$8.15 and $8.30 for the three and six months ended June 30, 1999, respectively,
compared to $8.42 and $8.37, respectively, for the corresponding periods in
1998. The decrease in the average rental income per occupied square foot in 1999
is primarily attributable to an increase in rental concessions.
Total expenses for the three and six-month periods ended June 30, 1999 were
$429,017 and $844,431, respectively, compared to $431,640 and $873,216,
respectively, for the three and six-month periods ended June 30, 1998. The
decreases for the three and six-month periods in 1999 primarily are due to lower
interest and general and administrative expenses, partially offset by higher
property operating expenses.
Property operating expenses consisted primarily of on-site personnel expenses,
utility costs, repair and maintenance costs, property management fees,
advertising costs, insurance and real estate taxes. Property operating expenses
for the three and six-month periods ended June 30, 1999 were $201,436 and
$374,780, respectively, compared to $136,022 and $306,370, respectively, for the
three and six-month periods ended June 30, 1998. The increases for the 1999
periods primarily are attributable to higher repairs and maintenance costs for
apartment preparation.
Interest expense totaled $115,469 and $229,937 for the three and six-month
periods ended June 30, 1999, respectively, compared to $153,271 and $306,882,
respectively, for the corresponding periods in 1998. The decreases are primarily
attributable to the Refinancing in December 1998 described above.
General and administrative expenses for the three and six-month periods ended
June 30, 1999 were $11,337 and $38,934, respectively, compared to $44,238 and
$68,126, respectively, for the three and six-month periods ended June 30, 1998.
The decreases are due primarily to lower accounting and administrative expenses,
partially offset by higher legal fees.
Year 2000 Issues
The Partnership recognizes that the arrival of the Year 2000 poses a unique
challenge to the ability of an information technology system and non-information
technology systems to recognize the date change from December 31, 1999 to
January 1, 2000. Through June 30, 1999, the Partnership has assessed and made
certain changes to provide for continued functionality of its systems and has
evaluated the readiness of the Partnership's external entities, such as vendors,
customers, payment systems and others. Due to the nature and extent of the
Partnership's operations that are potentially affected by Year 2000 issues, the
Partnership does not believe that Year 2000 issues will have a material adverse
effect on the business operation or the financial performance of the
Partnership. There can be no assurance, however, that Year 2000 issues will not
adversely effect the Partnership or its business. The Partnership believes that
the cost to make appropriate changes to its internal and external systems will
not be significant and that such costs will be funded completely through
operations.
General
Words or phrases when used in this Form 10-Q or other filings with the
Securities and Exchange Commission, such as "does not believe" and "believes",
or similar expressions are intended to identify "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
PART I, ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Partnership's financial instruments consist of cash and cash equivalents,
accounts receivable, accounts payable, accrued property taxes payable, and
security deposits. The carrying amount of these instruments approximate fair
value due to the short-term nature of these instruments. Therefore, the
Partnership believes it is relatively unaffected by interest rate changes or
other market risks.
7
<PAGE> 8
S/M REAL ESTATE FUND VII, LTD.
PART II OTHER INFORMATION
ITEMS 1-5 Not applicable.
ITEM 6 Exhibits and reports on Form 8-K.
(a) Exhibits -
2a Voluntary Petition of Shearson-Murray Real
Estate Fund VII, Ltd. to commence a case
under Chapter 11 of the Federal Bankruptcy
Code in the United States Bankruptcy Court
for the Western District of Texas-Austin
Division, as filed on June 6, 1989.
Reference is made to Exhibit 2a to Form
10-K filed with the Securities and
Exchange Commission on June 14, 1989.
2b Modified First Amended Plan of
Reorganization of Shearson-Murray Real
Estate Fund VII, Ltd. in the United States
Bankruptcy Court for the Western District
of Texas-Austin Division Case No.
89-11662-LC filed February 20, 1990.
Reference is made to the Partnership's
Annual Report on Form 10-K filed with the
Securities and Exchange Commission on
April 12, 1990.
3 Agreement of Limited Partnership of
Shearson-Murray Real Estate Fund VII,
Ltd., as amended as of September 30, 1983.
Reference is made to Form 8-K filed with
the Securities and Exchange Commission on
October 26, 1983. Reference is made to
Exhibit A to the Prospectus dated June 10,
1983 contained in Amendment No. 3 to
Partnership's Form S-11 Registration
Statement filed with the Securities and
Exchange Commission June 10, 1983.
10a Assignment and Assumption Agreement
between Murray Management Corporation and
Anterra Management Corporation for
property management and leasing services
dated January 1, 1990. Reference is made
to Exhibit 10u to the Partnership's Annual
Report on Form 10-K for the year ended
December 31, 1989 filed with the
Securities and Exchange Commission May 15,
1990.
10b Loan Agreement between S/M Real Estate
Fund VII, Ltd. and General Electric
Capital Corporation, dated December 3,
1998. (Incorporated by reference from
Exhibit 10.1 of the Registrant's Form 8-K
filed with the Securities and Exchange
Commission on December 14, 1998).
27 Financial Data Schedule. Filed herewith.
28a Pages A-16 to A-18 of Exhibit A to the
Prospectus dated June 10, 1983, contained
in Amendment No. 3 to Partnership's Form
S-11 Registration Statement filed with the
Securities and Exchange Commission on June
10, 1983. Reference is made to Exhibit 28a
of the Registrant's Form 10-K filed with
the Securities and Exchange Commission on
May 12, 1988.
28b Pages 10-18 of the Prospectus dated June
10, 1983, contained in Amendment No. 3 to
Partnership's Form S-11 Registration
Statement filed with the Securities and
Exchange Commission on June 10, 1983.
Reference is made to Exhibit 28b of the
Registrant's Form 10-K filed with the
Securities and Exchange
Commission on May 12, 1988.
8
<PAGE> 9
S/M REAL ESTATE FUND VII, LTD.
99a Compromise Settlement Agreement between
S/M Real Estate Fund VII, Ltd. and Federal
National Mortgage Association, dated May
6, 1996. (Incorporated by reference from
Exhibit 99.1 to the Registrant's Quarterly
Report on Form 10-Q for the quarter ended
June 30, 1996).
99b $5,830,000 Multifamily Note and Addendum,
dated May 30, 1996. (Incorporated by
reference from Exhibit 99.2 to the
Registrant's Quarterly Report on Form 10-Q
for the quarter ended June 30, 1996).
99c $681,142 Subordinate Multifamily Note and
Addendum, dated May 30, 1996.
(Incorporated by reference from Exhibit
99.3 to the Registrant's Quarterly Report
on Form 10-Q for the quarter ended June
30, 1996).
99d $6,400,000 Promissory Note, dated December
3, 1998. (Incorporated by reference from
Exhibit 99.1 of the Registrant's Form 8-K
filed with the Securities and Exchange
Commission on December 14, 1998).
(b) Reports on Form 8-K - No reports on Form 8-K were
filed during the quarter ended June 30, 1999.
9
<PAGE> 10
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.
S/M REAL ESTATE FUND VII, LTD.
BY: SM7 APARTMENT INVESTORS INC.
A General Partner
Date: August 11, 1999 BY: /s/ Richard E. Hoffmann
-------------------------------
Name: Richard E. Hoffmann
Title: Director, President and Treasurer
BY: MURRAY REALTY INVESTORS VII, INC.
A General Partner
Date: August 11, 1999 BY: /s/ Charles W. Karlen
-------------------------------
Name: Charles W. Karlen
Title: Vice President
<PAGE> 11
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------- -----------
<S> <C>
2a Voluntary Petition of Shearson-Murray Real Estate Fund VII,
Ltd. to commence a case under Chapter 11 of the Federal
Bankruptcy Code in the United States Bankruptcy Court for the
Western District of Texas-Austin Division, as filed on June 6,
1989. Reference is made to Exhibit 2a to Form 10-K filed with
the Securities and Exchange Commission on June 14, 1989.
2b Modified First Amended Plan of Reorganization of
Shearson-Murray Real Estate Fund VII, Ltd. In the United
States Bankruptcy Court for the Western District of
Texas-Austin Division Case No. 89-11662-LC filed February 20,
1990. Reference is made to the Partnership's Annual Report on
Form 10-K filed with the Securities and Exchange Commission on
April 12, 1990.
3 Agreement of Limited Partnership of Shearson-Murray Real
Estate Fund VII, Ltd., as amended as of September 30, 1983.
Reference is made to Form 8-K filed with the Securities and
Exchange Commission on October 26, 1983. Reference is made to
Exhibit A to the Prospectus dated June 10, 1983 contained in
Amendment No. 3 to Partnership's Form S-11 Registration
Statement filed with the Securities and Exchange Commission
June 10, 1983.
10a Assignment and Assumption Agreement between Murray Management
Corporation and Anterra Management Corporation for property
management and leasing services dated January 1, 1990.
Reference is made to Exhibit 10u to the Partnership's Annual
Report on Form 10-K for the year ended December 31, 1989 filed
with the Securities and Exchange Commission May 15, 1990.
10b Loan Agreement between S/M Real Estate Fund VII, Ltd. and
General Electric Capital Corporation, dated December 3, 1998.
Reference is made to Exhibit 10.1 to the Registrant's Form 8-K
filed with the Securities and Exchange Commission on December
14, 1998.
27 Financial Data Schedule.
28a Pages A-16 to A-18 of Exhibit A to the Prospectus dated June
10, 1983, contained in Amendment No. 3 to Partnership's Form
S-11 Registration Statement filed with the Securities and
Exchange Commission on June 10, 1983. Reference is made to
Exhibit 28a of the Registrant's Form 10-K filed with the
Securities and Exchange Commission on May 12, 1988.
28b Pages 10-18 of the Prospectus dated June 10, 1983, contained
in Amendment No. 3 to Partnership's Form S-11 Registration
Statement filed with the Securities and Exchange Commission on
June 10, 1983. Reference is made to Exhibit 28b of the
Registrant's Form 10-K filed with the Securities and Exchange
Commission on May 12, 1988.
99a Compromise Settlement Agreement between S/M Real Estate Fund
VII, Ltd. and Federal National Mortgage Association, dated May
6, 1996. Reference is made to Exhibit 99.1 of the Registrant's
Quarterly Report on Form 10-Q for the quarter ended June 30,
1996 filed with the Securities and Exchange Commission.
99b $5,830,000 Multifamily Note and Addendum, dated May 30, 1996.
Reference is made to Exhibit 99.2 of the Registrant's
Quarterly Report on Form 10-Q for the quarter ended June 30,
1996 filed with the Securities and Exchange Commission.
99c $681,142 Subordinate Multifamily Note and Addendum, dated May
30, 1996. Reference is made to Exhibit 99.3 of the
Registrant's Quarterly Report on Form 10-Q for the quarter
ended June 30, 1996 filed with the Securities and Exchange
Commission.
99d $6,400,000 Promissory Note, dated December 3, 1998. Reference
is made to Exhibit 99.1 of the Registrant's Form 8-K filed
with the Securities and Exchange Commission on December 14,
1998.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 339,405
<SECURITIES> 0
<RECEIVABLES> 3,172
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 420,345
<PP&E> 8,737,033
<DEPRECIATION> 5,741,256
<TOTAL-ASSETS> 3,416,122
<CURRENT-LIABILITIES> 168,918
<BONDS> 6,370,321
0
0
<COMMON> 0
<OTHER-SE> (3,123,117)
<TOTAL-LIABILITY-AND-EQUITY> 3,416,122
<SALES> 657,574
<TOTAL-REVENUES> 662,410
<CGS> 0
<TOTAL-COSTS> 374,780
<OTHER-EXPENSES> 239,714
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 229,937
<INCOME-PRETAX> (182,021)
<INCOME-TAX> 0
<INCOME-CONTINUING> (182,021)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (182,021)
<EPS-BASIC> (16.26)
<EPS-DILUTED> (16.26)
</TABLE>
