FORM 8-K - CURRENT REPORT
(As last amended in Rel. No. 34-36968, eff. 8/13/92)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: September 12, 1996
CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/2
(Exact name of registrant as specified in its charter)
California 0-11723 94-2883067
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or File Number) Identification
organization) Number)
One Insignia Financial Plaza
Post Office Box 1089
Greenville, South Carolina 29602
(Address of Principal Executive Office)
Registrant's telephone number, including area code (864) 239-1000
Item 2. Acquisition or Disposition of Assets
On September 12, 1996, Consolidated Capital Institutional Properties/2, a
California limited partnership (the "Partnership"), sold North Park Plaza,
located in Southfield, Michigan to an unaffiliated party, North Park Southfield
L.L.C., a Michigan limited liability company. The property was sold in an
effort to maximize the Partnership's return on its investment. Total cash paid
for North Park Plaza was $2,200,000.
Item 7. Financial Statements and Exhibits
(b) Pro forma financial information
North Park Plaza was sold on September 12, 1996, to an unaffiliated third party.
The following unaudited condensed balance sheet of the Partnership assumes the
property had been disposed of at June 30, 1996.
Pro Forma Balance Sheet
(in thousands except unit data)
(Unaudited)
June 30, June 30,
1996 Pro Forma 1996
As Reported Adjustments Pro Forma
Assets
Cash and cash equivalents:
Unrestricted $ 8,281 $ (29)(1) $ 8,252
Restricted--tenant security deposits 5 (5)(1) --
Other assets 614 (591)(1) 23
Net investment in master loan to affiliate 92,698 -- 92,698
Less: allowance for impairment loss (48,205) -- (48,205)
44,493 -- 44,493
Investment properties:
Land 716 (716)(1) --
Building and related personal property 5,546 (5,546)(1) --
6,262 (6,262)(1) --
Less: accumulated depreciation (4,449) 4,449 (1) --
1,813 (1,813)(1) --
$ 55,206 $( 2,438)(1) $ 52,768
Liabilities and Partners' Capital
Accounts payable and accrued expenses $ 136 $ (125)(1) $ 11
Tenant security deposits 114 (114)(1) --
Distributions payable 141 -- 141
Accrued taxes 82 (82)(1) --
473 (321)(1) 152
Partners' Capital 54,733 (2,117)(1) 52,616
$ 55,206 $ (2,438)(1) $ 52,768
(1) Represents pro forma adjustments to reflect the removal of assets and
liabilities related to the sale of North Park Plaza.
The following pro forma statements of (loss) income assume that North Park Plaza
had been sold as of December 31, 1995. The following pro forma statements of
(loss) income do not reflect the gain for financial statement purposes incurred
as a result of the sale.
Pro Forma Statements of (Loss) Income
(Unaudited)
For the six months ended
June 30, 1996
As Reported Adjustments Pro Forma
Revenues:
Rental income $ 861 $ (861)(2) $ --
Reduction of provision for
impairment loss 200 -- (2) 200
Other income 218 (1)(2) 217
Total revenues 1,279 (862)(2) 417
Expenses:
Operating 906 (906)(2) --
Depreciation and amortization 341 (341)(2) --
General and administrative 344 -- 344
Total expenses 1,591 (1,247)(2) 344
Net (loss) income $ (312) $ (385)(2) $ 73
Net (loss) income allocated
to general partner (1%) $ (3) $ (4)(2) $ 1
Net (loss) income allocated
to limited partners (99%) (309) (381)(2) 72
$ (312) $ (385)(2) $ 73
Net (loss) income per
limited partnership unit $ (.34) $ (.42)(2) $ .08
Weighted average number of units 909,138 909,138
(2) Represents pro forma adjustments to remove revenues and expenses related to
North Park Plaza as a result of the sale.
<TABLE>
<CAPTION>
Pro Forma Statements of (Loss) Income
(Unaudited)
For the twelve months ended
December 31, 1995
As Reported Adjustments Pro Forma
<S> <C> <C> <C>
Revenues:
Rental income $ 1,887 $(1,887)(2) $ --
Interest income on net investment
in master loan to affiliate 721 -- 721
Interest income on investments 556 -- 556
Other income 314 (57) 257
Reduction of provision for impairment loss 587 -- 587
Total revenues 4,065 (1,944)(2) 2,121
Expenses:
Operating 1,576 (1,576)(2) --
General and administrative 888 -- 888
Depreciation and amortization 867 (867)(2) --
Write-down of investment property 3,350 (3,350)(2) --
Total expenses 6,681 (5,793)(2) 888
Net (loss) income $ (2,616) $(3,849)(2) $ 1,233
Net (loss) income allocated to
general partner (1%) $ (26) $ (38)(2) $ 12
Net (loss) income allocated to
limited partners (99%) (2,590) (3,811)(2) 1,221
$ (2,616) $(3,849)(2) $ 1,233
Net loss per limited partnership unit $ (2.85) $ (4.19)(2) $ 1.34
Weighted average number of units 909,138 909,138
<FN>
(2) Represents pro forma adjustments to remove revenues and expenses related to
North Park Plaza as a result of the sale.
</TABLE>
(c) Exhibits
The Partnership has requested copies of the closing documents from the closing
attorneys for the sale of North Park Plaza but has not received these documents
as of the date of this filing. The Partnership will file an amended 8-K to
include these Exhibits when they are received.
SIGNATURE
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 hereunto duly authorized.
CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/2
By: ConCap Equities, Inc.
General Partner
By: /s/ Carroll D. Vinson
Carroll D. Vinson
President
DATE: October 2, 1996
