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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
REAL EQUITY PARTNERS
(Name of Issuer)
UNITS REPRESENTING ASSIGNMENTS OF LIMITED PARTNERSHIP INTERESTS
(Title of Class of Securities)
------------------------
(CUSIP Number)
David I. Lesser
Everest Properties II, LLC
199 South Los Robles Avenue, Suite 440
Pasadena, California 91101
(626) 585-5920
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
November 3, 1997
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1 (b) (3) or (4), check the following box [ ].
Check the following box if a fee is being paid with the statement[ ]. A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such Class.)
(See Rule 13d-7).
Note: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom copies
are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
SEC 1746 (12-91)
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SCHEDULE 13D
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CUSIP No. PAGE 2 OF 12 PAGES
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1 NAME OF REPORTING PERSON
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Everest Properties, LLC
Taxpayer ID No.: 09-4576844
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [x]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]1
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
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NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY EACH 1,479 Units
REPORTING PERSON WITH
8 SHARED VOTING POWER
9 SOLE DISPOSITIVE POWER
1,479 Units
10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,479 Units
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES CERTAIN
SHARES [ ]2
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
Approximately 4.9% (Based on 30,000 Units reported
as outstanding as of June 30, 1997)
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14 TYPE OF REPORTING PERSON
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT !
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
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SCHEDULE 13D
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CUSIP No. PAGE 3 OF 12 PAGES
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1 NAME OF REPORTING PERSON
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Everest Properties II, LLC
Taxpayer ID No.: 09-4599059
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [x]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]4
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
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NUMBER OF SHARES 11 SOLE VOTING POWER
BENEFICIALLY OWNED BY EACH 418 Units
REPORTING PERSON WITH
12 SHARED VOTING POWER
13 SOLE DISPOSITIVE POWER
418 Units
14 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
418 Units
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES CERTAIN
SHARES [ ]5
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
Approximately 1.4% (Based on 30,000 Units reported
as outstanding as of June 30, 1997)
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14 TYPE OF REPORTING PERSON
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT !
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
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SCHEDULE 13D
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CUSIP No. PAGE 4 OF 12 PAGES
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1 NAME OF REPORTING PERSON
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Everest Investors 3, LLC
Taxpayer ID No.: 09-4580477
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [x]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]6
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
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NUMBER OF SHARES 15 SOLE VOTING POWER
BENEFICIALLY OWNED BY EACH 1,479 Units
REPORTING PERSON WITH
16 SHARED VOTING POWER
17 SOLE DISPOSITIVE POWER
1,479 Units
18 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,479 Units
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES CERTAIN
SHARES [ ]7
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
Approximately 4.9% (Based on 30,000 Units reported
as outstanding as of June 30, 1997)
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14 TYPE OF REPORTING PERSON
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT !
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP No. PAGE 5 OF 12 PAGES
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1 NAME OF REPORTING PERSON
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
KM Investments, LLC
Taxpayer ID No.: 09-4599062
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [x]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]9
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
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NUMBER OF SHARES 19 SOLE VOTING POWER
BENEFICIALLY OWNED BY EACH 418 Units
REPORTING PERSON WITH
20 SHARED VOTING POWER
21 SOLE DISPOSITIVE POWER
418 Units
22 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
418 Units
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES CERTAIN
SHARES [ ]10
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
Approximately 1.39% (Based on 30,000 Units reported
as outstanding as of June 30, 1997)
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14 TYPE OF REPORTING PERSON
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT !
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
This statement on Schedule 13D ("Statement") is filed by Everest
Investors 3, LLC, a California limited liability company and KM Investments,
LLC, a California limited liability company, and their managing members to
report their interest in units of limited partnership interest ("Units") in Real
Equity Partners, a California limited partnership.
ITEM 1. SECURITY AND ISSUER.
(a) The name of the subject company is Real Equity Partners, a
California limited partnership (the "Partnership"). The address of the
Partnership's principal executive offices is 9090 Wilshire Boulevard, Suite 201,
Beverly Hills, California 90211.
(b) The class of equity securities to which this Statement
relates is the Units.
ITEM 2. IDENTITY AND BACKGROUND.
Everest Investors 3, LLC is a California limited liability
company organized on May 13, 1996, and is engaged in the business of acquiring,
holding, owning, investing in and selling interests in real property, primarily
in the form of limited partnership interests. Its principal business address is
199 South Los Robles Avenue, Suite 440, Pasadena, California 91101.
KM Investments, LLC is a California limited liability company
organized on September 18, 1996, and is engaged in the business of acquiring,
holding, owning, investing in and selling interests in real property, primarily
in the form of limited partnership interests. Its principal business address is
199 South Los Robles Avenue, Suite 440, Pasadena, California 91101.
Everest Properties II, LLC is a California limited liability
company organized on September 24, 1996, and is engaged in the business of
acquiring, holding, owning, investing in and selling interests in real property,
primarily in the form of limited partnership interests and serving as the
manager of KM Investments, LLC. Its principal business address is 199 South Los
Robles Avenue, Suite 440, Pasadena, California 91101.
Everest Properties, LLC, is a California limited liability
company organized on March 25, 1996, to serve as the manager of companies
engaged in real estate investments. Its principal business address is 199 South
Los Robles Avenue, Suite 440, Pasadena, California 91101.
During the last five years, none of the persons filing this
Statement nor, to the best of their knowledge, any of the persons listed in
Schedule I ("Directors and Officers") has been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors) or was a party
to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding any such person was or is
subject to a judgment, decree or final order enjoining further violations of, or
prohibiting activities subject to, federal or state securities laws or finding
any violation of such laws.
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ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Everest Investors 3, LLC obtained the funds to purchase the
Units reported on this Statement from capital contributions by its members. KM
Investments, LLC obtained the funds to purchase the Units reported on this
Statement from capital contributions by its members.
ITEM 4. PURPOSE OF TRANSACTION.
The parties filing this Statement believe that holding an
interest in the properties underlying the Units in an attractive investment at
the prices at which Units have been obtainable. They intend to monitor the
status of such properties and the real estate markets generally, and based upon
the results of such review and other economic considerations, including the
availability of, and alternate uses of, investment funds, may determine to
acquire additional Units, to sell Units now held, to seek to cause a sale of
properties held by the Partnership, to itself or third parties, or to seek
changes in the Partnership. On November 3, 1997, Everest Investors 3, LLC and KM
Investments, LLC agreed to share information and take a common position with
respect to a common proposal to sell their Units to the general partner of the
Partnership. Such proposal is expected to be communicated shortly. Except as
specified above, at this time, the persons filing this Statement do not have any
specific plans or proposals which would relate to, or would result in, any
transaction, change or other occurrence with respect to the Partnership or any
transaction, change or other occurrence with respect to the Partnership or the
Units as is listed in paragraphs (a) through (j) of Item 4 in Schedule 13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Everest Investors 3, LLC presently holds 1,479 Units, or
approximately 4.9% of the outstanding Units, based upon the number of Units
reported as outstanding on June 30, 1997. These Units were acquired by an offer
to purchase which began on September 1, 1996 and closed November 4, 1996. The
Partnership accepted the transfer of these Units to Everest Investors 3, LLC
effective as of October 1, 1996.
KM Investments, LLC owns 418 Units which were acquired in
private purchase transactions and represent approximately 1.39% of the
outstanding Units, based upon the number of Units reported as outstanding on
June 30, 1997.
As the manager of KM Investments, LLC, Everest Properties II,
LLC may be deemed to have beneficial ownership of the Units held by KM
Investments, LLC, even though the power to purchase or dispose of Units can be
exercised only with approval of the members. Everest Properties II, LLC also may
be deemed to have beneficial ownership of such Units because it owns a majority
interest in the majority member in KM Investments, LLC. Everest Properties, LLC
may be deemed to have ownership of Units held by Everest Investors 3, LLC
because it serves as manager, even though the power to purchase or dispose of
Units can be exercised only with the approval of the members.
In the past sixty days, the parties have made no purchases of
Units.
<PAGE>
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS WITH RESPECT TO
SECURITIES OF THE ISSUER.
The persons filing this Statement deny the existence of a
group and disclaim beneficial ownership of the Units held by the other persons
filing this Statement. This Statement is being filed as a precaution because the
individuals performing management services for Everest Properties, LLC and
Everest Properties II, LLC are substantially the same and such entities have
agreed to submit a joint proposal for the sale of their Units to the general
partner of the Partnership and share information regarding such proposal.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
7.a Agreement to submit joint proposal for sale of Units.
<PAGE>
SIGNATURES
After due inquiry and to the best of my knowledge and belief,
I certify that the information set forth in this statement is true, complete and
correct.
Dated: November 10, 1997
EVEREST INVESTORS 3, LLC
By: EVEREST PROPERTIES, LLC, Manager
By: /s/ W. ROBERT KOHORST
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W. Robert Kohorst
President
KM INVESTMENTS, LLC
By: EVEREST PROPERTIES II, LLC, Manager
By: /s/ W. ROBERT KOHORST
--------------------------
W. Robert Kohorst
President
EVEREST PROPERTIES, LLC
By: /s/ W. ROBERT KOHORST
--------------------------
W. Robert Kohorst
President
EVEREST PROPERTIES II, LLC
By: /s/ W. ROBERT KOHORST
--------------------------
W. Robert Kohorst
President
<PAGE>
SCHEDULE I
DIRECTORS AND EXECUTIVE OFFICERS
Everest Investors 3, LLC is owned by its members. The members
of Everest Investors, LLC are IPP 96, L.P., Del-Ev Associates, L.P., Everest
Properties, LLC and CS Investment Partners, LLC. Everest Properties, LLC, a
California limited liability company, serves as manager and may be regarded as
controlling Everest Investors 3, LLC. W. Robert Kohorst owns a controlling
interest in Everest Properties, LLC.
KM Investments, LLC is owned by its members. The members of KM
Investments, LLC are Everest Partners, LLC, Blackacre Everest, L.L.C. and
Everest Properties II, LLC. Everest Properties II, LLC serves as manager and may
be regarded as controlling KM Investments, LLC. A majority of the interest in
Everest Properties II, LLC is owned by Everest Properties, LLC which, as noted
above, is controlled by W. Robert Kohorst.
The individuals managing the managers of Everest Investors 3,
LLC and KM Investments, LLC are W. Robert Kohorst and David I. Lesser, who are
described below.
The business address of each executive officer and director
described below is 199 South Los Robles Avenue, Suite 440, Pasadena, California
91101. Each executive officer and director is a United States citizen. The name
and principal occupation or employment of each executive officer and director
are:
<TABLE>
Present Principal Occupation or Employment
Name Position and Five-Year Employment History
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<CAPTION>
<S> <C>
W.Robert Kohorst ........... President of Everest Properties II, LLC and
Everest Properties, LLC from 1996 to present.
President and Director of Everest Properties,
Inc., from 1994 to present. President and Director
of KH Financial, Inc., from 1991 to present.
David I. Lesser .......... Executive Vice President and Secretary of Everest
Properties II, LLC and Everest Properties, LLC
from 1996 to present. Executive Vice President of
Everest Properties, Inc., from 1995 to present.
Principal and member of Feder, Goodman & Schwartz,
Inc. from 1992 to 1996. Counsel to Howard, Rice,
Nemerovski, Canady, Robertson & Falk from 1990 to
1992.
</TABLE>
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EX-7.a
Agreement to make joint offer
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EXHIBIT 7.a
The undersigned, being owners of Units in Real Equity
Partners, a California limited partnership (the "Partnership"), hereby agree to
submit a joint proposal regarding the sale of such Units to the general partner
of such Partnership, and to share information in connection therewith.
Dated this 3rd day of November, 1997.
EVEREST INVESTORS 3, LLC
By: EVEREST PROPERTIES, LLC, Manager
By: /s/ W. ROBERT KOHORST
--------------------------
W. Robert Kohorst
President
KM INVESTMENTS, LLC
By: EVEREST PROPERTIES II, LLC, Manager
By: /s/ W. ROBERT KOHORST
--------------------------
W. Robert Kohorst
President
