<PAGE> 1
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 QUARTER ENDED SEPTEMBER 30, 1995
COMMISSION FILE NUMBER 2-82765
REAL EQUITY PARTNERS
A CALIFORNIA LIMITED PARTNERSHIP
I.R.S. EMPLOYER IDENTIFICATION NO. 95-3784125
9090 Wilshire Boulevard, Suite 201,
Beverly Hills, CA 90211
Registrant's Telephone Number,
Including Area Code (310) 278-2191
Securities Registered Pursuant to
Section 12(b) or 12(g) of the Act
NONE
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed with the Commission by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding twelve 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
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
INDEX TO FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1995
<TABLE>
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements and Notes to Financial Statements
Balance Sheets, September 30, 1995 and December 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . 1
Statements of Operations,
Nine and Three Months Ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . 2
Statement of Partners' Equity,
Nine Months Ended September 30, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Statements of Cash Flows,
Nine Months Ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Item 2. Management's Discussion and Analysis of Financial
Position and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
</TABLE>
<PAGE> 3
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
BALANCE SHEETS
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
<TABLE>
<CAPTION>
ASSETS
1995 1994
(Unaudited) (Audited)
------------ -------------
<S> <C> <C>
RENTAL PROPERTY, at cost
Land $ 7,077,565 $ 7,077,565
Buildings 26,949,118 26,949,118
Furniture and equipment 4,034,243 4,034,243
------------ ------------
38,060,926 38,060,926
Less accumulated depreciation (14,269,926) (13,587,088)
------------ ------------
23,791,000 24,473,838
------------ ------------
CASH AND CASH EQUIVALENTS 1,217,617 1,195,937
------------ ------------
OTHER ASSETS:
Due from affiliated rental agent 1,029,053 703,125
Other receivables and prepaid expenses 267,892 295,129
------------ ------------
1,296,945 998,254
------------ ------------
$ 26,305,562 $ 26,668,029
============ ============
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
Mortgage notes payable $ 17,784,949 $ 17,959,940
Accrued fees and expenses due general partner 640,702 609,195
Accounts payable and accrued expenses 1,186,120 1,069,300
Tenant security deposits 279,359 279,359
------------ ------------
19,891,130 19,917,794
PARTNERS' EQUITY 6,414,432 6,750,235
------------ ------------
$ 26,305,562 $ 26,668,029
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
1
<PAGE> 4
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
NINE AND THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
<TABLE>
<CAPTION>
Nine months Three months Nine months Three months
ended ended ended ended
Sept. 30, 1995 Sept. 30, 1995 Sept. 30, 1994 Sept. 30, 1994
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
RENTAL OPERATIONS
Revenues
Rental income $3,942,549 $1,286,277 $3,997,581 $1,333,173
Other income 213,856 69,686 194,693 57,181
---------- ---------- ---------- ----------
4,156,405 1,355,963 4,192,274 1,390,354
---------- ---------- ---------- ----------
Expenses
Operating expenses 1,960,493 579,185 1,804,075 362,769
Depreciation 682,839 227,613 682,617 227,613
General and administrative 195,790 65,845 155,981 60,848
Management fees-affiliate 229,743 75,078 227,180 76,168
Interest expense 1,334,960 442,225 1,172,984 408,144
Provision for earthquake damage - - 423,079 423,079
---------- ---------- ---------- ----------
4,403,825 1,389,946 4,465,916 1,558,621
---------- ---------- ---------- ----------
Loss from rental operations (247,420) (33,983) (273,642) (168,267)
---------- ---------- ---------- ----------
PARTNERSHIP OPERATIONS
Interest income 34,007 11,226 19,965 8,054
---------- ---------- ---------- ----------
Expenses
Interest expense-general partner 31,507 10,618 73,933 12,649
General and administrative 65,933 26,102 67,089 19,809
Professional fees 24,950 2,986 39,765 2,978
---------- ---------- ---------- ----------
122,390 39,706 180,787 35,436
---------- ---------- ---------- ----------
Loss from partnership operations (88,383) (28,480) (160,822) (27,382)
---------- ---------- ---------- ----------
Net loss $ (335,803) $ (62,463) $ (434,464) $ (195,649)
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 5
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENT OF PARTNERS' EQUITY (DEFICIENCY)
NINE MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
General Limited
Partners Partners Total
-------- ----------- ----------
<S> <C> <C> <C>
PARTNERSHIP INTERESTS,
September 30, 1995 30,000
==========
EQUITY (DEFICIENCY),
at January 1, 1995 $(717,075) $7,467,310 $6,750,235
Net loss for the nine months
ended September 30, 1995 (3,358) (332,445) (335,803)
--------- ---------- ----------
EQUITY (DEFICIENCY),
at September 30, 1995 $(720,433) $7,134,865 $6,414,432
========= ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 6
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
<TABLE>
<CAPTION>
1995 1994
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (335,803) $ (434,464)
Adjustment to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation 682,838 682,617
(Increase) decrease in:
Other receivables and prepaid expenses 27,237 (168,294)
Due from affiliated rental agent (325,928) 103,634
Increase (decrease) in:
Accrued fees and expenses due general partner 31,507 (2,236,464)
Accounts payable and accrued expenses 116,820 787,830
---------- -----------
Net cash provided by (used in) operating activities 196,671 (1,265,141)
---------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners - (450,000)
Principal payments on mortgage notes payable (174,991) (186,309)
Proceeds from mortgage notes payable - 5,785,000
Payments of mortgage notes payable - (3,096,178)
---------- -----------
Net cash provided by (used in) financing activities (174,991) 2,052,513
---------- -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 21,680 787,372
CASH AND CASH EQUIVALENTS, at beginning of period 1,195,937 736,699
---------- -----------
CASH AND CASH EQUIVALENTS, at end of period $1,217,617 $ 1,524,071
========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 7
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL
The information contained in the following notes to the financial
statements is condensed from that which would appear in the annual
audited financial statements; accordingly, the financial statements
included herein should be reviewed in conjunction with the financial
statements and related notes thereto contained in the annual report
for the year ended December 31, 1994 filed by Real Equity Partners
(the "Partnership"). National Partnership Investments Corp.
("NAPICO") is the corporate general partner of the Partnership.
Accounting measurements at interim dates inherently involve greater
reliance on estimates than at year end. The results of operations for
the interim periods presented are not necessarily indicative of the
results for the entire year.
In the opinion of the general partners of the Partnership, the
accompanying unaudited financial statements contain all adjustments
(consisting primarily of normal recurring accruals) necessary to
present fairly the financial position of the Partnership as of
September 30, 1995, and the results of operations for the three and
nine months then ended and changes in cash flow for the nine months
then ended.
RENTAL PROPERTY AND DEPRECIATION
Rental property is stated at cost. Depreciation is provided for on
the straight-line method over the estimated useful lives of the
buildings and equipment.
On January 17, 1994, the Park Creek and Warner Willows I and II rental
properties sustained damage, estimated at approximately $1,454,000,
due to the earthquake in the Los Angeles area. Insurance proceeds of
approximately $630,000 were allocated to the Partnership in 1994, as
the estimated full settlement under a master umbrella insurance policy
covering earthquake damage for these and other properties managed by
an affiliate of NAPICO. Included in liabilities at September 30, 1995
is approximately $627,400 related to the earthquake damages (Note 4).
The total estimated expenditures needed to repair the properties, net
of the insurance recoveries, which nets to approximately $824,000,
were expensed in the period ended December 31, 1994, since they did
not extend the useful life of the properties.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash and bank certificates of
deposit with an original maturity of three months or less.
NOTE 2 - MORTGAGE NOTES PAYABLE
Mortgage notes payable consist of the following:
a. Conventional mortgage notes bearing interest at rates ranging
from 8% to 10.375% per annum, payable in monthly installments
ranging from $11,710 to $44,300 per month and having maturity
dates from February 1996 to March 2001. These notes total
$15,407,439 at September 30, 1995.
5
<PAGE> 8
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1995
NOTE 2 - MORTGAGE NOTES PAYABLE (CONTINUED)
b. Mortgage note, insured by the Department of Housing and Urban
Development under the Section 221(d)(4) program, bearing
interest at the rate of 7 percent per annum, payable in
monthly installments of approximately $19,500, including
interest through maturity in the year 2013. The note has a
balance of $2,377,510 at September 30, 1995.
The mortgage notes are secured by deeds of trust on the rental
properties.
The mortgage on the Arbor Glen property, in the approximate amount of
$5,000,000 at September 30, 1995, matures in April 1996. The
Partnership has submitted applications to refinance the property.
There can be no assurance, however, that a new mortgage will be
obtained or that the current mortgagor will extend the term of the
existing mortgage.
Parkside property has not made any payments since May 1995 on its
mortgage note payable, which is nonrecourse to the Partnership.
Although a default letter was received from the lender, the
Partnership has requested from the lender an interest rate reduction
and an extended maturity date on the mortgage. The lender may
commence foreclosure action against the property if the mortgage
payments in arrears are not brought current. The outstanding balance
on the note payable is approximately $3,453,000 at September 30, 1995,
and it is secured by the property, which has a net book value of
approximately $3,598,000 at September 30, 1995.
NOTE 3 - INCOME TAXES
No provision has been made for income taxes in the accompanying
financial statements as such taxes, if any, are the liability of the
individual partners.
NOTE 4 - RELATED PARTY TRANSACTIONS
The Partnership has entered into agreements with an affiliate of
NAPICO to manage the operations of the rental properties. The
agreements are on a month-to-month basis and provide, among other
things, for a management fee equal to 5 percent of gross rentals and
other collections. Management fees charged to operations under this
agreement were approximately $229,700 and $227,100 for the nine months
ended September 30, 1995 and 1994, respectively.
An affiliate of the corporate general partner repaired certain of the
earthquake damage at the Park Creek and Warner Willows I and II rental
properties. The payments to this affilate for these repairs has been
approximately $733,000 through September 30, 1995. The remaining
earthquake work to be performed (Note 1) will be competitively bid.
6
<PAGE> 9
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1995
NOTE 4 - RELATED PARTY TRANSACTIONS (CONTINUED)
Under the terms of the Restated Certificate and Agreement of Limited
Partnership (the "Partnership Agreement"), the Partnership is
obligated to the corporate general partner for a deferred acquisition
fee. This fee is for services rendered in connection with the
selection, purchase, acquisition, development, and management of the
Partnership and monitoring the operations of the properties.
Distribution of any part of this fee shall be subordinated to receipt
by each Limited Partner of an amount equal to a cumulative
non-compounded 6 percent annual distribution with respect to the
adjusted capital value (as defined in the Partnership Agreement). The
aggregate amount of the deferred acquisition fee distributed in any
year from net cash from operations shall not exceed an amount equal to
3 percent of the investment in properties plus any proceeds from sale
or refinancing of the properties. The deferred acquisition fee shall
be an amount which, when present valued at 8 percent from certain
dates as defined in the Partnership Agreement, equals 10 percent of
the gross proceeds of the offering ($3,000,000). Distribution of
deferred acquisition fees will be made from net cash from operations
and net proceeds from sale or refinancing for a maximum of 15 years,
or until the above limit is met.
The present value of the deferred acquisition fee plus accrued
interest has been reflected in the accompanying financial statements
and has been capitalized as part of the cost of rental property
acquired. In March 1994, the Partnership paid approximately
$2,300,000 to the corporate general partner from refinancing proceeds.
The amount outstanding as of September 30, 1995 was approximately
$641,000.
The Partnership reimburses NAPICO for certain expenses. The
reimbursement to NAPICO of $8,028 was paid and included in the
Partnership's operating expenses in the nine months ended September
30, 1995.
NOTE 5 - CONTINGENCIES
The corporate general partner of the Partnership is a plaintiff in
various lawsuits and has also been named as defendant in other
lawsuits arising from transactions in the ordinary course of business.
In the opinion of management and the corporate general partner, the
claims will not result in any material liability to the Partnership.
7
<PAGE> 10
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
SEPTEMBER 30, 1995
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS
OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Partnership was formed to invest in residential rental properties
either directly or through investments in joint ventures and other
partnerships which will invest in such real estate. The nine
buildings owned by the Partnership were acquired at various dates
during 1984 and 1985.
The Partnership's primary sources of funds are income from rental
operations and interest income earned on cash reserves.
Distributions of net cash from operations were normally intended to be
made to the Limited Partners of record on a quarterly basis during the
months of February, May, August, and November pro rata in proportion
to the number of units held. The November 1994, February 1995 and May
1995 distributions to the limited partners were not made due to the
Partnership setting aside funds for losses incurred by REP as a result
of the January 17, 1995 earthquake in the Los Angeles area. The
Partnership will resume distributions to the limited partners once
sufficient funds are in cash reserves to repair such earthquake
damage.
The mortgage on the Arbor Glen property matures in April 1996. The
Partnership has submitted applications to refinance the property, and
it is anticipated that the Partnership will obtain a new loan bearing
interest at a fixed rate of aprpoximately 8.2% with a ten year term,
amortized over 30 years. There can be no assurance, however, that a
new mortgage will be obtained or that the current mortgagor will
extend the term of the existing mortgage.
RESULTS OF RENTAL OPERATIONS
Occupancy at the Parkside property averaged 82 percent during the
first nine months of 1995, an 8 percent decrease from the same period
in 1994. Low occupancy has resulted in a decrease in cash flows for
the period, and property operations were insufficient to pay monthly
debt service. In order to mitigate the ongoing deficit operations at
the property, the Partnership submitted a letter to the lender on the
Parkside property on April 27, 1995, requesting an interest rate
reduction and an extended maturity date on the mortgage. Parkside
property has not paid mortgage payments since May 1995 and a default
letter dated May 24, 1995 was received from the lender. The lender is
reviewing the request for a loan modification. There can be no
assurance, however, that the lender will agree to any debt
forebearance, interest rate reduction or extension of the loan term.
The Partnership advanced $43,000 to the Parkside property during the
nine months ended September 30, 1995. The property operated at a
deficit of approximately $120,309 during the nine months ended
September 30, 1995, after accruing for the unpaid interest on the
mortgage. The lender may commence foreclosure action if the mortgage
payments in arrears are not brought current.
Occupancy at the Warner Willows I & II properties averaged 96 percent
during the first nine months of 1995, a 1 percent increase from the
same period in 1994. The combined expenses for both properties, with
the exception of interest expense (which increased as a result of the
1994 debt refinancing), remained
8
<PAGE> 11
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
SEPTEMBER 30, 1995
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS
OF OPERATIONS (CONTINUED)
RESULTS OF RENTAL OPERATIONS (CONTINUED)
consistent compared with the same period in 1994. The properties had
positive cash flows of approximately $40,000 and $19,800, respectively
for the nine months ended September 30, 1995, after payments of
approximately $10,000 on each of the properties for earthquake damage.
See below for further discussion on earthquake damage.
Occupancy at Arbor Glen averaged 95 percent during the first nine
months of 1995 and 1994. Arbor Glen operated with positive cash flows
of approximately $23,900 during the first nine months of 1995. The
mortgage on the property expires in April 1996.
Occupancy at the Park Creek property averaged 85 percent during the
first nine months of 1995, a 7 percent decrease from the same period
in 1994. Expenses are consistent when compared with same period in
1994. The property operated with positive cash flows of approximately
$57,000 during the first nine months of 1995, after payments for
earthquake damage of approximately $5,000. See below for further
discussion on earthquake damage.
Occupancy at the Willowbrook property averaged 95 percent during the
first nine months of 1995, a 2 percent decrease for the same period
in 1994. The property operated with positive cash flows of
approximately $143,200 for the period.
On January 17, 1994, the Park Creek and Warner Willows I and II rental
properties sustained damage, estimated at approximately $1,454,000,
due to the earthquake in the Los Angeles area. Insurance proceeds of
approximately $630,000 were allocated to the Partnership in 1994, as
the estimated full settlement under a master umbrella insurance policy
covering earthquake damage for these and other properties managed by a
related party. Included in liabilities at September 30, 1995 is
approximately $627,400 related to the earthquake damages. The total
estimated expenditures needed to repair the properties, net of the
insurance recoveries, which nets to approximately $824,000, were
expensed in the period ended December 31, 1994, since they did not
extend the useful life of the properties.
The Partnership operations consist primarily of interest income earned
on certificates of deposit and other temporary investments of funds
not required for investment in projects. The amount of interest
income varies with market rates available on certificates of deposit
and with the amount of funds available for investment. Operating
expenses are higher in 1995 than in 1994 primarily because of roof
repairs and replacement costs.
Operating expenses of the Partnership consist substantially of
recurring general and administrative expenses and professional fees
for services rendered to the Partnership and interest on the deferred
acquisition fee due the General Partners.
9
<PAGE> 12
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
SEPTEMBER 30, 1995
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS
OF OPERATIONS (CONTINUED)
RESULTS OF RENTAL OPERATIONS (CONTINUED)
The Partnership is incurring interest expense at a rate of 8 percent
per annum on the unpaid fees due the general partner. Under the terms
of the Partnership Agreement, the Partnership is obligated to the
general partner for a deferred acquisition fee for services rendered
in connection with the selection, purchase, development, management
and monitoring the operations of the properties, in an amount which,
when calculated on a present value basis (using a discount factor of 8
percent for this purpose) from the date of payment to the general
partners to September 27, 1984 equals 10 percent of the gross proceeds
of the offering ($3,000,000). Distribution of any part of this fee
from net cash from operations shall be subordinate to receipt by each
Limited Partner of an amount equal to a cumulative noncompounded 6
percent distribution. The acquisition fee distributed in any year
from net cash from operations shall not exceed an amount equal to 3
percent of investment in properties (approximately $600,000) plus any
proceeds from sale or refinancing of the properties. During 1987,
$762,000 was paid to the general partner for this fee. Of this
amount, $612,000 was generated from refinancing one of the mortgage
notes payable. Furthermore, in March, 1994, approximately $2,300,000
of the excess proceeds received from the Park Creek and Warner Willows
I and II refinancings were used to partially pay the deferred
acquisition fees due the general partner. As of September 30, 1995,
approximately $641,000 is still outstanding.
An annual property management fee, which shall not in any event exceed
5 percent of gross revenues from each property under management, is
also payable to an affiliate of the corporate general partner.
10
<PAGE> 13
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
SEPTEMBER 30, 1995
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As of September 30, 1995, the Partnership's corporate general partner was a
plaintiff or defendant in several lawsuits. None of these were related to the
Partnership.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) No exhibits are required per the provision of item 7 of regulation S-K.
11
<PAGE> 14
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
SEPTEMBER 30, 1995
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.
REAL EQUITY PARTNERS
(a California limited partnership)
By: National Partnership Investments Corp.
Corporate General Partner
Date: ___________________________________
By: _____________________________________
Bruce Nelson
President
Date: ___________________________________
By: _____________________________________
Shawn Horwitz
Executive Vice President and
Chief Financial Officer
12
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
PARTNERSHIP'S STATEMENTS OF EARNINGS AND BALANCE SHEETS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<CIK> 0000717303
<NAME>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 1,217,617
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,514,562
<PP&E> 38,060,926
<DEPRECIATION> 14,267,926
<TOTAL-ASSETS> 26,305,562
<CURRENT-LIABILITIES> 1,186,120
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 6,414,432
<TOTAL-LIABILITY-AND-EQUITY> 26,305,562
<SALES> 0
<TOTAL-REVENUES> 4,190,412
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,159,748
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,366,467
<INCOME-PRETAX> (335,803)
<INCOME-TAX> 0
<INCOME-CONTINUING> (335,803)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (335,803)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
