UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1994
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
Commission file number 0-11985
Krupp Realty Limited Partnership-V
(Exact name of registrant as specified in its charter)
Massachusetts 04-2796207
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
470 Atlantic Avenue, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (617) 423-2233
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Units of Investor Limited Partner Interest
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
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ].
Aggregate market value of voting securities held by non-affiliates: Not
applicable, as securities are non-voting.
Documents incorporated by reference: None
The exhibit index is located on pages 9 to 12.
<PAGE>
PART I
ITEM 1. BUSINESS
Krupp Realty Limited Partnership-V (the "Partnership") was formed on
June 16, 1983 by filing a Certificate of Limited Partnership in The
Commonwealth of Massachusetts. The Krupp Corporation (a Massachusetts
corporation) and The Krupp Company Limited Partnership-II (a Massachusetts
limited partnership) are the General Partners of the Partnership. The
Partnership has issued all of the Original Limited Partner Interests to The
Krupp Company Limited Partnership-II. On September 6, 1983, the
Partnership, pursuant to a sales agent agreement, commenced the marketing
and sale of units of Investor Limited Partner Interest ("Units") for $1,000
per unit, 35,200 of which were sold. For further details, see Note A to
Financial Statements included in Appendix A to this report.
The Partnership considers itself to be engaged only in the industry
segment of investment in real estate. The Partnership invested the net
proceeds from the offering in leveraged real estate. The Partnership
originally invested in four multi-family apartment complexes (Century II,
Marine Terrace, Fieldcrest Apartments, Park Place Tower Apartments "Park
Place") and a joint venture in Lakeview Towers with Krupp Realty Limited
Partnership-IV, an affiliated limited partnership. The aggregate purchase
price of the properties was approximately $67 million and the Partnership
originally funded approximately $2.3 million to the joint venture.
In 1992, the Partnership sold one of its apartment complexes, Fieldcrest
Apartments, and received a distribution of proceeds from the sale of
Lakeview Towers.
The Partnership's real estate investments are subject to some material
seasonal fluctuations resulting from changes in utility consumption and
seasonal maintenance expenditures. Such factors include general economic
and real estate market conditions, both on a national basis and in those
areas where the Partnership's real estate investments are located, real
estate tax rates, operating expenses, energy costs, government regulations
and federal and state income tax laws. The requirements for compliance
with federal, state and local regulations to date have not had an adverse
effect on the Partnership's operations, and no adverse effect therefrom is
now anticipated in the future.
The Partnership's investments in real estate are also subject to such
risks as (i) competition from existing and future projects held by other
owners in the locations of the Partnership's properties, (ii) fluctuations
in rental income due to changes in occupancy levels, (iii) possible
adverse changes in mortgage interest rates, (iv) possible adverse changes
in general economic and local conditions, such as competitive
over-building, increases in unemployment, or adverse changes in real estate
zoning laws, (v) the possible future adoption of rent control legislation
which would not permit the full amount of increased costs to be passed on
to tenants in the form of rent increases, and (vi) other circumstances over
which the Partnership may have little or no control.
As of December 31, 1994, there were 54 full and part-time on-site
personnel employed by the Partnership.
<PAGE>
ITEM 2. PROPERTIES
As of December 31, 1994, the Partnership has leveraged investments in
three apartment complexes having an aggregate of 1,556 units. One of the
complexes has an additional 20,000 square feet of leasable commercial
space.
A summary of the Partnership's real estate investments is presented
below. Schedule III included in Appendix A to this report contains
additional detailed information with respect to individual properties.
<TABLE>
<CAPTION>
Total Units/
Current Average Occupancy
Year of Leasable December 31,
Description Acquisition Square Footage 1994 1993 1992
<S> <C> <C> <S> <C> <C> <C>
Century II Apts.
Cockeysville, Maryland 1984 468 Units 92% 91% 93%
Marine Terrace Apts.
Chicago, Illinois 1984 187 Units 94% 96% 94%
Park Place Tower Apts. 901 Units 94% 94% 92%
Chicago, Illinois 1984 20,000 Sq. Ft. 83% 80% 83%
</TABLE>
ITEM 3. LEGAL PROCEEDINGS
The Partnership is a defendant in a class action suit related to the
practice of giving discounts for the early or timely payments of rent at
Park Place. The central issue of the complaint was whether the operative
lease, by allowing tenants a discount, of typically $30, if rent was paid
on or before the first day of the month, violated a Chicago municipal
ordinance relating to late fee charges. The ordinance in question limited
late fee charges to $10 per month if the rent was more than 5 days late.
The allegation was that, notwithstanding the stated rental rate and printed
discount, the practice represented an unlawful means of exacting late fee
charges. In addition to seeking damages for any "forfeited" discounts,
plaintiffs seek statutory damages of two months rent per lease violation
plus reasonable attorneys' fees. To be eligible for such punitive damages
plaintiffs must prove that defendants deliberately used a provision
prohibited by the ordinance. During 1994, the Court ruled in favor of the
Defendants, and accepted the Partnership's Motion to Dismiss the
Plaintiff's Third Amended Complaint. The Plaintiffs have filed an appeal
with the Appellate Court of Illinois, First District, which is pending.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None. PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
The transfer of Units is subject to certain limitations contained in the
Partnership Agreement. There is no public market for the Units and it is
not anticipated that any such public market will develop.
The number of Investor Limited Partners as of December 31, 1994 was
approximately 2,400.
One of the objectives of the Partnership is to generate cash available
for distribution. The General Partners discontinued distributions during
1990 due to insufficient operating cash flow. The Partnership will resume
distributions when the properties generate sustainable cash flow in excess
of operating and capital improvement needs to provide for such
distributions. However, during 1993, the Partnership distributed an amount
equal to the withholding required for a Partners' tax of $27,888 in the
state of Maryland arising from the sale of Fieldcrest Apartments. This
amount was paid to the state of Maryland for the benefit of all Partners.
<PAGE>
ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth selected financial information regarding
the Partnership's financial position and operating results. This
information should be used in conjunction with Management's Discussion and
Analysis of Financial Condition and Results of Operations and the Financial
Statements and Supplementary Data, which are included in Items 7 and 8 of
this report, respectively.
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
Total
revenue $13,652,413 $13,684,206 $14,117,452 $14,517,166 $14,103,348
Proceeds
on sale
of
investments - - 5,190,234 - -
Net income
(loss) (1,450,214) (3,921,897) 689,941 (3,869,880) (4,798,026)
Allocation of net
income:
Investor Limited
Partners
("ILP") (1,435,712) (3,882,678) 683,042 (3,831,181) (4,750,046)
Per Unit
- ILP (40.79) (110.30) 19.41 (108.84) (134.94)
Original Limited
Partner - - - - -
General
Partners (14,502) (39,219) 6,899 (38,699) (47,980)
Total assets at
December 31, 42,604,180 45,011,823 48,787,088 53,123,075 55,833,927
Long-term
obligations
at December
31, 46,805,538 47,392,245 47,225,125 47,509,912 47,759,970
Distributions to
Partners:
Investor Limited
Partners - 25,936 - - -
Per Unit - Investor
Limited
Partners - .74 - - -
Original
Limited
Partners - 1,673 - - -
General
Partners - 279 - - -
</TABLE>
<PAGE>
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Partnership's ability to generate cash adequate to meet its needs is
dependent primarily upon the successful operations of its real estate
investments. Such ability is also dependent upon the future availability
of bank borrowing sources as current debt matures. These sources of
liquidity will be used by the Partnership for payment of expenses related
to real estate operations, debt service, capital improvements and expenses.
Cash flow, if any, as calculated under Section 8.2(a) of the Partnership
Agreement ("Cash Flow"), will then be available for distribution to the
Partners. The General Partners discontinued distributions during 1990 due
to insufficient operating cash flow. The Partnership will resume
distributions when the properties generate sustainable cash flow in excess
of operating and capital improvement needs.
The Partnership's major capital improvement project, the repair of Park
Place's building facade, is approximately 95% complete as of December 31,
1994. The Partnership anticipates that the restoration project will be
completed in early 1995, and will greatly enhance the appearance of the
property. This improvement, along with extensive interior improvements, is
being funded from established reserves and is expected to result in both
increased rents and increased occupancy.
Prior to Park Place's refinancing on September 15, 1993, management
suspended payment of property management fees and expense reimbursements to
an affiliate. At December 31, 1994, past due fees and reimbursements
totalled approximately $1,300,000. Subsequent to the refinancing, the
Partnership resumed current payments of property management fees and
expense reimbursements and expects to generate sufficient cash flow to
begin to repay the accrued obligation.
Currently, the Partnership is researching refinancing options for Marine
Terrace.
<PAGE>
Cash Flow
Shown below, as required by the Partnership Agreement, is the
calculation of Cash Flow for the year ended December 31, 1994:
<TABLE>
<CAPTION>
Rounded to $1,000
<S> <C>
Net loss for tax purposes $(1,444,000)
Items not requiring (requiring)
the use of operating funds:
Tax basis depreciation and amortization 3,416,000
Principal payments on mortgage notes payable (543,000)
Expenditures for capital improvements (3,017,000)
Amounts released from reserves 1,400,000
Cash Flow deficit $ (188,000)
</TABLE>
Operations
The following discussion relates to the operations of the Partnership
and its properties (Park Place, Marine Terrace, Century II and Fieldcrest)
for the years ended December 31, 1994, 1993 and 1992, or portion thereof.
1994 compared to 1993
The slight increase in rental revenue is primarily due to an increase in
rental rates at Park Place and Marine Terrace, and increased occupancy at
Century II, offset by decreased occupancy at Marine Terrace. Interest
income decreased due to funds previously invested in short-term investments
being used for the refinancing of Park Place's mortgage during the third
quarter of 1993 and a decrease in interest earned on construction escrows.
Operating expenses decreased due to savings in parking garage expenses
as a result of management subcontracting the parking garage operations at
Park Place. Additionally, a portion of this decrease resulted from a rate
reduction in electric costs by the local utility company. These savings
were partially offset by an increase in maintenance expense, primarily for
the painting of the interior units and the installation of window dressings
at Park Place. Real estate taxes decreased at Park Place due to a prior
year revaluation by the taxing authority. However, real estate taxes are
expected to increase upon the completion of the building facade repair.
As a result of the refinancing of Park Place's first mortgage from an
interest rate of 10.75% to 6.75% per annum during the third quarter of
1993, interest expense decreased by $1,456,000 for the year ended December
31, 1994, as compared to the same period in 1993. The decrease in
depreciation and amortization is primarily due to a mortgage premium paid
and fully amortizing deferred mortgage costs in 1993 related to the
mortgage loan held prior to Park Place's refinanced mortgage.
1993 compared to 1992
The results of operations of the Partnership are not comparable due to
the sales of Lakeview Towers and Fieldcrest Apartments in the third quarter
of 1992. Rental revenues increased by $203,000, net of $748,000 revenue
generated by Fieldcrest Apartments in 1992. The primary reason for the
increase in rental revenue is due to increase occupancy at Park Place and
Marine Terrace, offset by an increase in vacancies at Century II.
The vacancies at Century II were primarily due to a softening in the rental
marketplace because of significant layoffs in the area and first time home
buyers taking advantage of lower interest
Continued
<PAGE>
rates. Interest income increased by $60,000 primarily due to the
Partnership's investment in commercial paper and interest earned on the
$1,400,000 Park Place escrow.
In comparing 1993 to 1992, recurring operating expenses increased by
$103,000, less Fieldcrest expenses of $331,000. Maintenance expenses
decreased by $130,000 primarily due to the sale of Fieldcrest. Real estate
taxes were lower in 1992 due to an abatement of the 1992 and 1991 taxes at
Park Place and Marine Terrace totalling $601,000, recorded in 1992.
Interest expense decreased by $168,000 resulting from the sale of
Fieldcrest in 1992 and the refinancing of Park Place's mortgage in 1993.
In conjunction with the refinancing, the Partnership wrote off the mortgage
premium and deferred costs of the original Park Place loan totalling
$1,190,000.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
See Appendix A to this report.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The Partnership has no directors or executive officers. Information as
to the directors and executive officers of The Krupp Corporation, which is
a General Partner of the Partnership and is the general partner of The
Krupp Company Limited Partnership-II, which is the other General Partner of
the Partnership, is as follows:
Position with
Name and Age The Krupp Corporation
Douglas Krupp (48) Co-Chairman of the Board
George Krupp (50) Co-Chairman of the Board
Laurence Gerber (38) President
Marianne Pritchard (45) Treasurer
Ross V. Keeler (46) Executive Vice President
Frank Apeseche (37) Executive Vice President
Douglas Krupp has been Co-Chairman of The Berkshire Group
(formerly The Krupp Companies) since its formation in 1966. He has been
primarily responsible for overseeing the acquisition, disposition and
financing of properties by the entities sponsored by The Berkshire Group
and their affiliates. In addition, since 1987 Mr. Krupp has been
responsible for founding and overseeing through the start-up phase certain
new business ventures including the healthcare and construction businesses
of The Berkshire Group. He is a graduate of Bryant College in Rhode
Island. In 1989, he received an honorary Doctor of Science in Business
Administration degree from Bryant College and he also serves as a Trustee
of Bryant College. Douglas Krupp is the brother of George Krupp.
Continued
<PAGE>
George Krupp has been Co-Chairman of The Berkshire Group since
its formation in 1966. His efforts over the years have encompassed the
broad spectrum of The Berkshire Group's activities including responsibility
for the real estate operations of The Berkshire Group through mid-1991, and
he continues to be involved in strategic planning. He attended the
University of Pennsylvania prior to joining his brother, Douglas Krupp, in
the real estate business in 1966. Mr. Krupp currently serves as Chairman
of the Board and a Trustee of Krupp Government Income Trust and Krupp
Government Income Trust II, and Chairman of the Board and a director of
Berkshire Realty Company, Inc.
Laurence Gerber has been President and Chief Executive Officer
of The Berkshire Group since 1991. He previously served from 1987 to 1991
as President of Berkshire Financial Company with overall responsibility for
marketing, mortgage banking, product development and corporate financing,
and also worked on strategic planning. Prior to that, he served as
Executive Vice President, Acquisitions and, prior to that, as Senior Vice
President and Chief Planning Officer since joining the firm in January
1984. Before joining the firm, Mr. Gerber was a management consultant with
Bain & Co. headquartered in Boston, since July 1982. Prior to that, he was
a Senior Tax Accountant with Arthur Andersen & Co., an international
accounting and consulting firm, in New York. He has a B.S. degree in
economics with high honors from the University of Pennsylvania Wharton
School and an M.B.A. degree with High Distinction from Harvard Business
School. He is a Certified Public Accountant. Mr. Gerber serves as
President and a Trustee of Krupp Government Income Trust and Krupp
Government Income Trust II, and as President and a director of Berkshire
Realty Company, Inc.
Marianne Pritchard, Treasurer of The Krupp Corporation and
Senior Vice-President, has been Chief Financial and Accounting Officer of
Berkshire Realty Affiliates since rejoining The Berkshire Group in August,
1991. Prior to rejoining The Berkshire Group, she was Vice President and
Controller for Liberty Real Estate Group, a subsidiary of Liberty Mutual
Insurance Company from July 1989 to August 1991. Prior to Liberty, Ms.
Pritchard held the position of Controller/Treasurer of Berkshire Mortgage
Finance from April 1987 to July 1989. Prior to that, Ms. Pritchard was
Senior Audit Manager with Deloitte and Touche, an international accounting
and consulting firm. She is a Certified Public Accountant and received her
B.B.A. degree in Accounting from the University of Texas.
Ross V. Keeler is President of Berkshire Investment Advisors
and an Executive Vice-President of The Berkshire Group. Prior to joining
The Berkshire Group in November 1984, he served as Executive Vice President
of Marketing and a member of the Board of Directors at First Capital
Companies, a national syndicator of real estate investments. Prior to
that, Mr. Keeler served as President of State Financial Corporation, a
company which originated specialized leases on major equipment for
municipalities. He received a B.S. degree in finance with honors from the
University of Florida and received an M.B.A. degree with scholastic honors
from the University of Southern California.
Frank Apeseche was appointed Executive Vice President and Chief
Financial Officer of The Berkshire Group on January 1, 1993. He oversees
strategic planning, tax planning, corporate finance and product development
for The Berkshire Group. Before joining the firm in 1986, Mr. Apeseche was
a manager at Arthur Andersen & Co., an international accounting and
consulting firm. Mr. Apeseche holds a B.A. degree with High Distinction
from Cornell University and an M.B.A. degree with honors from the
University of Michigan.
<PAGE>
ITEM 11. EXECUTIVE COMPENSATION
The Partnership has no directors or executive officers.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
As of December 31, 1994, no person of record owned or was known
by the General Partners to own beneficially more than 5% of the
Partnership's 35,200 outstanding Units. On that date, the General Partners
or their affiliates owned 116 Units (.33% of the total outstanding) of the
Partnership in addition to their General and Original Limited Partner
Interests.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
See Note E of Notes To Financial Statements included in
Appendix A to this report.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) 1. Financial statements - see Index to Financial Statements
and Schedule included under Item 8, Appendix A, on page
F-2 to this Report.
2. Financial statement schedule - see Index to Financial
Statements and Schedule included under Item 8, Appendix
A, on page F-2 to this Report. All other schedules are
omitted as they are not applicable, not required or the
information is provided in the financial statements or
the notes thereto.
(b) Exhibits:
Number and Description
Under Regulation S-K
The following reflects all applicable Exhibits required under
Item
601 of Regulation S-K.
(4) Instruments defining the rights of security holders
including indentures:
(4.1) Amended Agreement of Limited Partnership dated as of
July 27, 1983 [Exhibit A to Prospectus included in
Registrant's Registration Statement on Form S-11 (File
2-84645)].*
(4.2) Amended Certificate of Limited Partnership filed with
the Massachusetts Secretary of State on December 16,
1983 [Exhibit 4.2 to Registrant's Report on Form 10-K
for 1983 (File 2-84645)].*
(10) Material Contracts
Park Place Apartments
(10.1) Purchase and Sale Agreement dated April 24, 1984
between Douglas Krupp and Sheldon J. Mandell, Howard
J. Mandell, Jerome W. Mandell and Norman Mandell
[Exhibit 1 to Registrant's Report on Form 8-K dated
May 4, 1984 (File No. 2-84645)].*
(10.2) Assignment of Beneficial Interest in Land Trust dated
May 1, 1984 by Sheldon J. Mandell, Howard J. Mandell,
Jerome W. Mandell and Norman Mandell to Krupp Realty
Limited Partnership-V. [Exhibit 10.9 to Registrant's
Report on Form 10-K for the year ended November 30,
1984 (File No. 0-11985)].*
(10.3) Addendum to Management Agreement between Krupp Realty
Park Place - Chicago Limited Partnership and Krupp
Asset Management Company, now known as Berkshire
Property Management ("BPM") [Exhibit 2 to Registrant's
Report on Form 8-K dated April 27, 1989 (File No. 0-
11985)].*
(10.4) Agreement of Limited Partnership of Krupp Realty Park
Place -Chicago Limited Partnership dated March 15,
1989 [Exhibit 5 to Registrant's Report on Form 8-K
dated April 27, 1989 (File No. 0-11985)].*
<PAGE>
(10.5) Assignment of General Partners interests in Krupp
Realty Park Place - Chicago Limited Partnership by The
Krupp Corporation to Krupp Realty Limited Partnership-
V dated March 15, 1989 [Exhibit 6 to Registrant's
Report on Form 8-K dated April 27, 1989 (File No. 0-
11985)].*
(10.6) Written Consent of Directors of The Krupp Corporation
dated April 18, 1989 assigning beneficial interest in
Park Place Apartments to Krupp Realty Park Place -
Chicago Limited Partnership [Exhibit 7 to
Registrant's Report on Form 8-K dated April 27, 1989
(File No. 0-11985)].*
(10.7) Management Agreement dated May 4, 1984 between Krupp
Realty Limited Partnership-V, as Owner, and Krupp
Asset Management Company, now known as Berkshire
Property Management ("BPM") [Exhibit 10.18 to
Registrant's Report on Form 10-K for the year ended
November 30, 1984 (File No. 0-11985)].*
(10.8) Loan Modification/Cancellation Agreement dated
September 14, 1993 between South Chicago Bank, as
Trustee, and Krupp Realty Park Place - Chicago Limited
Partnership (File No. 0-11985).*
(10.9) Modification to mortgage note dated September 14, 1993
between South Chicago Bank, as Trustee, and Government
National Mortgage Association (File No. 0-11985).*
(10.10) Modification of mortgage dated September 14, 1993
between South Chicago Bank, as Trustee, and
Government National Mortgage Association (File No.
0-11985).*
(10.11) Regulatory Agreement for Multifamily Housing
Projects dated September 14, 1993, between South
Chicago Bank, as Trustee, and Krupp Realty Park
Place - Chicago Limited Partnership (File No. 0-
11985).*
Marine Terrace Apartments
(10.12) Trust Agreement, dated February 15, 1983 between
American National Bank and Trust Company of Chicago
and Yitzhaz Persky [Exhibit 3 to Registrant's
Report on Form 8-K dated August 8, 1984 (File No.
0-11985)].*
(10.13) Trustee's Certificate of Beneficial Ownership in
Trust by Douglas Krupp dated May 4, 1984 [Exhibit
4 to Registrant's Report on Form 8-K dated August
8, 1984 (File No. 0-11985)].*
<PAGE>
(10.14) Assignment of Interest in Trust Agreement by
Douglas Krupp to Krupp Realty Limited Partnership-V
dated August 8, 1984 [Exhibit 5 to Registrant's
Report on Form 8-K dated August 8, 1984 (File No.
0-11985)].*
(10.15) Management Agreement dated August 8, 1984 between
Krupp Realty Limited Partnership-V, as Owner, and
Krupp Asset Management Company, now known as
Berkshire Property Management ("BPM") [Exhibit
10.28 to Registrant's Report on Form 10-K for the
year ended November 30, 1984 (File No. 0-11985)].*
(10.16) Promissory Note, dated June 2, 1986, by American
National Bank and Trust Company of Chicago, as
Trustee, and Cohen Financial Corporation [Exhibit
19.1 to Registrant's Report on Form 10-Q for the
quarter ended August 31, 1986 (File No. 0-11985)].*
(10.17) Mortgage dated June 2, 1986 by American National
Bank and Trust Company of Chicago, as Trustee, and
Cohen Financial Corporation [Exhibit 19.2 to
Registrant's Report on Form 10-Q for the quarter
ended August 31, 1986 (File No. 0-11985)].*
(10.18) Modification Agreement dated December 21, 1988 by
American National Bank and Trust Company of
Chicago, as Trustee, and Mutual Trust Life
Insurance Company, as Mortgagee. [Exhibit 10.22 to
the Registrant's Report on Form 10-K dated December
31, 1988 (File No. 0-11985)].*
(10.19) Amended and Restated Promissory Note, dated
December 21, 1988, by American National Bank and
Trust Company of Chicago, as Trustee, and Mutual
Trust Life Insurance Company. [Exhibit 10.23 to the
Registrant's Report on Form 10-K dated December 31,
1988 (File No. 0-11985)].*
Century II Apartments
(10.20) Agreement of Sale, dated September 18, 1984 between
the Partners of Century III Associates and Douglas
Krupp and related exhibits including Mortgage Notes
and Related Mortgages [Exhibit 1 to Registrant's
Report on Form 8-K dated October 11, 1984 (File No.
0-11985)].*
(10.21) Assignment of Partnership Interest in Century III
Associates dated October 10, 1984 by the Partners
of Century III Associates to The Krupp Company
Limited Partnership-II, The Krupp Corporation and
Krupp Realty Limited Partnership-V [Exhibit 2 to
Registrant's Report on Form 8-K dated October 11,
1984 (File No. 0-11985)].*
<PAGE>
(10.22) Fifth, Sixth and Seventh Amended and Restated
Limited Partnership Agreement of Century III
Associates Limited Partnership [Exhibit 3 to
Registrant's Report on Form 8-K dated October 11,
1984 (File No. 0-11985)].*
(10.23) Assignment of Beneficial Interest in Century III
Associates from The Krupp Company Limited
Partnership-II and The Krupp Corporation to Krupp
Realty Limited Partnership-V. [Exhibit 10.32 to
Registrant's Report on Form 10-K for the year ended
November 30, 1984 (File No. 0-11985)].*
(10.24) Management Agreement dated October 11, 1984 between
Krupp Realty Limited Partnership-V, as Owner, and
Krupp Asset Management Company, now known as
Berkshire Property Management ("BPM") [Exhibit
10.33 to Registrant's Report on Form 10-K for the
year ended November 30, 1984 (File No. 0-11985)].*
(10.25) Third Amended and Restated Promissory Note dated
April 27, 1989 between Century III Associates
Limited Partnership and Bankers United Life
Assurance Company. [Exhibit 8 to Registrant's
Report on Form 8-K dated April 27, 1989 (File No.
0-11985)].*
(10.26) Third Amended and Restated Deed of Trust dated
April 27, 1989 between Century III Associated
Limited Partnership and Bankers United Life
Assurance Company. [Exhibit 9 to Registrant's
Report on Form 8-K dated April 27, 1989 (File No.
0-11985)].*
*Incorporated by reference
(c) Reports on Form 8-K
During the last quarter of the fiscal year ended December 31,
1994, the Partnership did not file any reports on Form 8-K.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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, on the
27th day of March, 1995.
KRUPP REALTY LIMITED
PARTNERSHIP-V
By: The Krupp Corporation, a General
Partner
By:
George Krupp, Co-Chairman
(Principal Executive Officer)
and Director of The Krupp
Corporation
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated, on the 27th day of March, 1995.
Signatures Title(s)
/s/Douglas Krupp Co-Chairman (Principal Executive Officer)
Douglas Krupp and Director of The Krupp Corporation, a
General Partner.
/s/George Krupp Co-Chairman (Principal Executive Officer)
George Krupp and Director of The Krupp Corporation, a
General Partner.
/s/Laurence Gerber President of The Krupp Corporation, a
Laurence Gerber General Partner.
/s/Marianne Pritchard Treasurer of The Krupp Corporation, a
Marianne Pritchard General Partner.
<PAGE>
APPENDIX A
KRUPP REALTY LIMITED PARTNERSHIP-V
FINANCIAL STATEMENTS
ITEM 8 OF FORM 10-K
ANNUAL REPORT TO THE SECURITIES AND EXCHANGE COMMISSION
For the Year Ended December 31, 1994
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE
Report of Independent Accountants F-3
Balance Sheets at December 31, 1994 and 1993 F-4
Statements of Operations for the years ended December 31, 1994,
1993 and 1992 F-5
Statements of Changes in Partners' Deficit for the years
ended December 31, 1994, 1993 and 1992 F-6
Statements of Cash Flows for the years ended
December 31, 1994, 1993 and 1992 F-7
Notes to Financial Statements F-8 - F-13
Schedule III - Real Estate and Accumulated Depreciation F-14 - F-15
All other schedules are omitted as they are not applicable, not required,
or the information is provided in the financial statements or the notes
thereto.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Krupp Realty Limited Partnership-V:
We have audited the financial statements and financial
statement schedule of Krupp Realty Limited Partnership-V (the
"Partnership") listed in the index on page F-2 of this Form 10-K. These
financial statements and financial statement schedule are the
responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements and financial statement
schedule based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of Krupp
Realty Limited Partnership-V as of December 31, 1994 and 1993 and the
results of its operations and its cash flows for each of the three years in
the period ended December 31, 1994 in conformity with generally accepted
accounting principles. In addition, in our opinion, the financial
statement schedule referred to above, when considered in relation to the
basic financial statements taken as a whole, presents fairly, in all
material respects, the information required to be included therein.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
January 31, 1995
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
<TABLE>
<CAPTION>
BALANCE SHEETS
December 31, 1994 and 1993
ASSETS
1994 1993
<S> <C> <C>
Multi-family apartment complexes, net of
accumulated depreciation of $34,905,809
and $31,569,120, respectively (Note D) $38,419,783 $38,739,695
Cash and cash equivalents 598,443 1,159,301
Cash restricted for tenant security deposits 516,327 566,626
Cash restricted for capital improvements 919,047 2,280,342
Prepaid expenses and other assets (Note E) 1,568,572 1,610,737
Deferred expenses, net of accumulated
amortization of $463,623 and $378,371,
respectively (Note E) 582,008 655,122
Total assets $42,604,180 $45,011,823
LIABILITIES AND PARTNERS' DEFICIT
Mortgage notes payable (Note D) $47,390,488 $47,933,327
Accounts payable 370,107 705,254
Accrued real estate taxes 1,895,473 1,926,353
Accrued expenses and other liabilities 1,219,501 1,148,996
Due to affiliates (Note E) 1,266,260 1,385,328
Total liabilities 52,141,829 53,099,258
Commitments and contingencies (Note F)
Partners' deficit (Note G) (9,537,649) (8,087,435)
Total liabilities and partners' deficit $42,604,180 $45,011,823
</TABLE>
The accompanying notes are an integral
part of the financial statements.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1994, 1993 and 1992
<TABLE>
<CAPTION>
1994 1993 1992
<S> <C> <C> <C>
Revenue:
Rental (Note I) $13,577,822 $13,524,281 $14,069,419
Interest income 74,591 159,925 100,227
Partnership's share of
Joint Venture net loss (Note C) - - (52,194)
Total revenue 13,652,413 13,684,206 14,117,452
Expenses:
Operating (including reimbursements
to affiliates of $362,395,
$362,424 and $403,788,
respectively) (Note E) 4,093,333 4,451,341 4,679,280
Maintenance 941,189 871,079 1,001,366
Real estate taxes 2,101,222 2,169,575 1,634,779
Management fees to an affiliate
(Note E) 438,049 440,403 492,739
Depreciation and amortization 3,421,941 4,125,915 3,385,416
General and administrative
(including reimbursements to
affiliates of $73,072, $80,879
and $79,554, respectively)
(Note E) 129,204 114,200 108,608
Interest (Note D) 3,977,689 5,433,590 5,601,922
Total expenses 15,102,627 17,606,103 16,904,110
Loss before Partnership's share of gain
on sale of Joint Venture and loss on
sale of property (1,450,214) (3,921,897) (2,786,658)
Partnership's share of gain on sale of
Joint Venture (Note C) - - 3,875,915
Loss on sale of property (Note C) - - (399,316)
Net income (loss) (Note J) $(1,450,214) $(3,921,897) $ 689,941
Allocation of net income (loss) (Note G):
Per Unit of Investor
Limited Partner Interest
(35,200 Units) $ (40.79) $ (110.30) $ 19.41
Original Limited Partner $ - $ - $ -
General Partners $ (14,502) $ (39,219) $ 6,899
</TABLE>
The accompanying notes are an integral
part of the financial statements.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
STATEMENTS OF CHANGES IN PARTNERS' DEFICIT
For the Years Ended December 31, 1994, 1993 and 1992
_____________
<TABLE>
<CAPTION>
Investor Original Total
Limited Limited General Partners'
Partners Partner Partners Deficit
<S> <C> <C> <C> <C>
Balance at
December 31, 1991 $(4,242,426) $(232,866) $(352,299) $(4,827,591)
Net income 683,042 - 6,899 689,941
Balance at
December 31, 1992 (3,559,384) (232,866) (345,400) (4,137,650)
Distributions
(Note H) (25,936) (1,673) (279) (27,888)
Net loss (3,882,678) - (39,219) (3,921,897)
Balance at
December 31, 1993 (7,467,998) (234,539) (384,898) (8,087,435)
Net loss (1,435,712) - (14,502) (1,450,214)
Balance at
December 31, 1994 $(8,903,710) $(234,539) $(399,400) $(9,537,649)
</TABLE>
The accompanying notes are an integral
part of the financial statements.
<PAGE> KRUPP REALTY LIMITED PARTNERSHIP-V
STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 1994, 1993 and 1992
<TABLE>
<CAPTION>
1994 1993 1992
<S> <C> <C> <C> <C>
Operating activities:
Net income (loss) $(1,450,214) $(3,921,897) $ 689,941
Adjustments to reconcile
net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 3,421,941 4,125,915 3,385,416
Loss on sale of property - - 399,316
Partnership's share of gain
on sale of Joint Venture - - (3,875,915)
Partnership's share of Joint
Venture net loss - - 52,194
Refund of distributions received
from Joint Venture - - (2,050)
Amortization of mortgage premium - 326,164 1,200
Decrease (increase) in cash
restricted for tenant
security deposits 50,299 (44,789) 24,432
Decrease in prepaid expenses
and other assets 42,165 425 838,983
Increase (decrease) in accounts
payable (412,993) 419,671 (1,029,101)
Increase (decrease) in accrued real
estate taxes (30,880) 53,511 (522,541)
Increase (decrease) in accrued
expenses and other liabilities 70,505 (1,188,156) 1,199,935
Increase (decrease) in
due to affiliates (119,068) 382,922 (610,572)
Net cash provided by operating
activities 1,571,755 153,766 551,238
Investing activities:
Additions to property (3,016,777) (1,619,113) (1,503,113)
Decrease (increase) in cash restricted for
capital improvements 1,361,295 (1,329,701) (65,492)
Distribution of net sale proceeds from
Joint Venture - - 5,190,234
Proceeds from the sale of property - - 3,883,281
Increase in accounts payable
related to fixed asset additions 77,846 111,174 -
Net cash provided by (used in)
investing activities (1,577,636) (2,837,640) 7,504,910
Financing activities:
Proceeds from mortgage note payable - 33,000,000 -
Repayment of mortgage notes payable - (32,626,898) (3,855,579)
Principal payments on
mortgage notes payable (542,839) (303,868) (209,270)
Increase in deferred expenses (12,138) (316,471) -
Distributions - (27,888) -
Net cash used in financing
activities (554,977) (275,125) (4,064,849)
Net increase (decrease) in
cash and cash equivalents (560,858) (2,958,999) 3,991,299
Cash and cash equivalents, beginning of year 1,159,301 4,118,300 127,001
Cash and cash equivalents, end of year $ 598,443 $ 1,159,301 $ 4,118,300
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
NOTES TO FINANCIAL STATEMENTS
A. Organization
Krupp Realty Limited Partnership-V (the "Partnership") was formed on
June 16, 1983 by filing a Certificate of Limited Partnership in The
Commonwealth of Massachusetts. The Partnership terminates on December
31, 2020, unless earlier terminated upon the sale of the last of the
Partnership's properties or the occurrence of certain other events as
set forth in the Partnership Agreement. The Partnership issued all of
the General Partner Interests to two General Partners in exchange for
capital contributions aggregating $1,000. The Krupp Corporation (a
Massachusetts corporation) and The Krupp Company Limited Partnership-II
(a Massachusetts limited partnership) are the General Partners of the
Partnership. Except under certain limited circumstances upon
termination of the Partnership, the General Partners are not required to
make any additional capital contributions. The Partnership has also
issued all of the Original Limited Partner Interests to The Krupp
Company Limited Partnership-II in exchange for a capital contribution of
$4,000.
On September 6, 1983, the Partnership commenced the marketing and sale
of units of Investor Limited Partner Interest ("Units") for $1,000 per
unit. The public offering was closed on December 2, 1983 at which time
a total of 35,200 Units had been sold for $35,200,000.
B. Significant Accounting Policies
The Partnership uses the following accounting policies for financial
reporting purposes, which may differ in certain respects from those used
for federal income tax purposes (see Note J).
Cash Equivalents
The Partnership includes all short-term investments with maturities of
three months or less at the date of acquisition in cash and cash
equivalents. The cash investments are recorded at cost, which
approximates current market values.
Rental Revenues
Residential leases and the base rent under commercial leases require
the payment of rent monthly in advance. Rental revenues are recorded
on the accrual basis.
Depreciation
Depreciation is provided for by the use of the straight-line method
over estimated useful lives of the related assets as follows:
Buildings and improvements 5-25 years
Appliances, carpeting and equipment 3-5 years
The Partnership recorded depreciation expense of $3,336,689,
$3,165,916 and $3,277,353 for the years ended December 31, 1994, 1993
and 1992, respectively.
Continued
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
NOTES TO FINANCIAL STATEMENTS, Continued
B. Significant Accounting Policies, Continued
Investment in Krupp Realty Lakeview Limited Partnership
The Partnership's investment in Krupp Realty Lakeview Limited
Partnership ("Joint Venture") was accounted for using the equity
method under which the Partnership's equity investment in net earnings
or losses of the Joint Venture were included currently in the
Partnership's net earnings. Distributions received from the Joint
Venture reduced the investment (see Note C).
Deferred Expenses
Costs of obtaining and recording mortgages on the properties are
amortized over the term of the related mortgage notes using the
straight-line method.
Income Taxes
The Partnership is not liable for federal or state income taxes as
Partnership income or loss is allocated to the partners for income tax
purposes. In the event that the Partnership's tax returns are
examined by the Internal Revenue Service or state taxing authority and
the examination results in a change in the Partnership's taxable
income or loss, such change will be reported to the partners.
Reclassifications
Certain prior year balances have been reclassified to conform with the
current year financial statement presentation.
C. Disposition of Real Estate Investments
On August 5, 1992, the Partnership sold Fieldcrest Apartments for
$3,900,000. Proceeds from the sale were used to repay the existing
mortgage note on the property in the amount of $3,855,579. The property
had a net book value of $4,282,597, which resulted in a loss of $399,316
for financial reporting purposes.
On August 28, 1992, Lakeview Towers, a property owned in a Joint Venture
with an affiliate, was sold for $16,000,000. The sales price consisted
of the assumption of the outstanding balance on the existing non-
recourse first mortgage of $5,476,266 by the purchaser, with the balance
of the sales price paid in cash. The Partnership received net proceeds
of $5,190,234 from the sale and recognized a gain of $3,875,915 for
financial reporting purposes.
Continued
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
NOTES TO FINANCIAL STATEMENTS, Continued
D. Mortgage Notes Payable
Substantially all of the property owned by the Partnership is pledged as
collateral for the mortgage notes outstanding at December 31, 1994 and
1993 which consisted of the following:
<TABLE>
<CAPTION>
Annual
Principal Interest
Property 1994 1993 Rate Maturity Date
<S> <C> <C> <C> <C>
Park Place
Tower Apartments $32,576,187 $32,918,067 6.75% May 1, 2024
Marine Terrace
Apartments 4,098,302 4,186,319 10.5% July 1, 1996
Century II
Apartments 10,715,999 10,828,941 10.625% May 1, 1999
Total $47,390,488 $47,933,327
</TABLE>
Park Place Tower Apartments
A non-recourse mortgage note of $33,000,000 dated September 15, 1993,
by the U.S. Department of Housing and Urban Development ("HUD")
payable in equal monthly installments of principal and interest of
$212,783, based on a 31-year amortization. At maturity, all unpaid
principal (approximately $1,457,000) and any accrued interest is due.
The note may not be prepaid prior to October 1, 1998. In the event
prepayment of principal occurs any time after this date, a prepayment
premium shall be due, based on a declining premium rate of 5% to 0% of
the outstanding principal balance over a period of 5 years. Under
the terms of the loan, HUD restricts the distribution of funds to
Surplus Cash, as defined.
Marine Terrace Apartments
A non-recourse first mortgage note of $4,515,560 is payable in equal
monthly installments of $43,619 including principal and interest based
on a 25-year amortization. At maturity, all unpaid principal
(approximately $3,948,000) and any accrued interest is due.
Prepayment is allowed, subject to certain premiums.
Century II Apartments
A non-recourse first mortgage note of $11,000,000. payable in equal
monthly installments of $104,844, based on a 25-year amortization
schedule. At maturity, all unpaid principal (approximately
$10,077,000) and any accrued interest is due.
The aggregate scheduled principal amounts of long-term borrowings due
during the five years ending December 31, 1999 are $584,950, $4,536,410,
$569,802, $615,927 and $10,614,413.
During the years ended December 31, 1994, 1993 and 1992, the Partnership
paid $3,792,109, $6,124,243 and $4,235,631 of interest on its mortgage
notes, respectively.
Continued
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
NOTES TO FINANCIAL STATEMENTS, Continued
E. Related Party Transactions
Commencing with the date of acquisition of each property, the
Partnership entered into agreements under which property management fees
are paid to an affiliate of the General Partners for services as
management agent for the properties. Such agreements provide for
management fees payable monthly at the rate of up to 5% of rentals and
other operating income received. The Partnership also reimburses
affiliates of the General Partners for certain expenses incurred in
connection with the operation of the properties including accounting,
computer, travel, insurance, legal and payroll, as well as the
preparation and mailing of reports and other communications to the
Limited Partners.
In addition to the amounts presented on the face of the Statement of
Operations, during 1994, 1993 and 1992, costs of $14,083, $27,658 and
$74,401, respectively, were accrued or paid to the General Partners or
their affiliates. These costs related to refinancing the debt on the
Partnership's properties.
Due to affiliates consists of the following as of December 31:
<TABLE>
<CAPTION>
1994 1993
<S> <C> <C>
Property management fees $ 739,200 $ 760,935
Expense reimbursements 527,060 624,393
$1,266,260 $1,385,328
</TABLE>
F. Legal Proceeding
The Partnership is a defendant in a class action suit related to the
practice of giving discounts for the early or timely payments of rent at
Park Place. The central issue of the complaint was whether the
operative lease, by allowing tenants a discount, of typically $30, if
rent was paid on or before the first day of the month, violated a
Chicago municipal ordinance relating to late fee charges. The ordinance
in question limited late fee charges to $10 per month if the rent was
more than 5 days late. The allegation was that, notwithstanding the
stated rental rate and printed discount, the practice represented an
unlawful means of exacting late fee charges. In addition to seeking
damages for any "forfeited" discounts, plaintiffs seek statutory damages
of two months rent per lease violation plus reasonable attorneys' fees.
To be eligible for such punitive damages plaintiffs must prove that
defendants deliberately used a provision prohibited by the ordinance.
During 1994, the Court ruled in favor of the Defendants, and accepted
the Partnership's Motion to Dismiss the Plaintiff's Third Amended
Complaint. The Plaintiffs have filed an appeal with the Appellate Court
of Illinois, First District, which is pending. Although management
believes that the defendants will prevail on the issue of statutory
damages, the ultimate outcome of this litigation, including an estimate
of any potential loss, cannot be presently determined and accordingly no
provision for loss has been made in the accompanying financial
statements.
G. Partners' Deficit
Under the terms of the Partnership Agreement, losses from operations are
allocated 99% to the Investor Limited Partners and 1% to the General
Partners and profits from operations are allocated 93% to the Investor
Limited Partners, 6% to the Original Limited Partner and 1% to the
General Partners until such
Continued
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
NOTES TO FINANCIAL STATEMENTS, Continued
G. Partners' Deficit - Continued
time that the Investor Limited Partners have received a return of their
total invested capital plus a 9% per annum cumulative return thereon and
thereafter, 65% to the Investor Limited Partners, 28% to the Original
Limited Partner and 7% to the General Partners. Profit or loss from
capital transactions are allocated in accordance with the Partnership
Agreement.
Under the Partnership Agreement, cash distributions are generally made
on the same basis as the allocations of profits described above.
Distributions from a sale, exchange, or other disposition of a property
or upon the termination of the Partnership are to be allocated
differently than that described above.
As of December 31, 1994 the following cumulative partner contributions
and allocations have been made since inception of the Partnership:
<TABLE>
<CAPTION>
Investor Original
Limited Limited General
Partners Partner Partners Total
<S> <C> <C> <C> <C>
Capital contributions $ 35,200,000 $ 4,000 $ 1,000 $ 35,205,000
Syndication costs (4,501,000) - - (4,501,000)
Cash distributions (4,099,303) (251,479) (41,912) (4,392,694)
Net gains on capital
transactions 3,441,833 - 34,766 3,476,599
Operating income
(loss) (38,945,240) 12,940 (393,254) (39,325,554)
Balance at
December 31, 1994 $ (8,903,710) $(234,539) $(399,400) $ (9,537,649)
</TABLE>
H. Distributions
During 1993, the Partnership distributed an amount equal to the
withholding required for a Partners' tax of $27,888 in the state of
Maryland arising from the sale of Fieldcrest Apartments. This amount
was paid to the state of Maryland for the benefit of all Partners.
I. Future Base Rents Due Under Commercial Operating Leases
Future base rent receivable under commercial operating leases for the
years 1995 through 1999 are as follows:
<TABLE>
<CAPTION>
<C> <C>
1995 $126,061
1996 $100,824
1997 $ 83,994
1998 $ 68,289
1999 $ 69,536
</TABLE>
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
NOTES TO FINANCIAL STATEMENTS, Continued
J.Federal Income Taxes
For federal income tax purposes, the Partnership is depreciating its
properties using the Accelerated Cost Recovery System ("ACRS") and the
Modified Cost Recovery System ("MACRS") depending on which is applicable.
The reconciliation of the net loss reported in the accompanying
Statement of Operations with the net loss to be reported in the
Partnership's 1994 federal income tax return follows:
<TABLE>
<CAPTION>
<S> <C>
Net loss per Statement of Operations $(1,450,214)
Difference between book and tax depreciation 5,917
Net loss for federal income tax purposes $(1,444,297)
</TABLE>
The allocation of the net loss for federal income tax purposes for 1994
is as follows:
<TABLE>
<CAPTION>
Portfolio Passive
Income Loss Total
<S> <C> <C> <C>
General Partners $ 746 $ (15,189) $ (14,443)
Original Limited Partner - - -
Investor Limited Partners 73,844 (1,503,698) (1,429,854)
$74,590 $(1,518,887) $(1,444,297)
</TABLE>
During the years ended December 31, 1994, 1993 and 1992 the per Unit net
income (loss) to the Investor Limited Partners for federal income tax
purposes was ($40.62), ($111.61) and $77.45, respectively.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 1994
<TABLE>
<CAPTION>
Costs
Capitalized
Subsequent to
Initial cost to Partnership Acquisition
Buildings & Buildings & Depreciable
Description Encumbrances Land Improvements Improvements Life
<S> <C> <C> <C> <C> <C> <C>
Century II Apts
Cockeysville,
Maryland $10,715,999 $1,049,868 $13,948,246 $ 2,734,698 3 to 25Yrs.
Marine Terrace
Apartments
Chicago, Illinois 4,098,302 368,494 4,899,745 1,326,890 3 to 25Yrs.
Park Place Apts
Chicago, Illinois 32,576,187 2,877,561 38,230,448 7,889,642 3 to 25Yrs.
TOTAL: $47,390,488 $4,295,923 $57,078,439 $11,951,230
</TABLE>
<TABLE>
<CAPTION>
Gross Amounts carried at
End of Year
Buildings Year
and Accumulated Construction Year
Description Land Improvements Total Depreciation Completed Acquired
<S> <C> <C> <C> <C> <C> <C>
Century II Apts
Cockeysville,
Maryland $1,049,868 $16,682,944 $17,732,812 $8,967,729 1971 1984
Marine Terrace
Apartments
Chicago,
Illinois 368,494 6,226,635 6,595,129 3,334,865 1952 1984
Park Place Apts
Chicago,
Illinois 2,877,561 46,120,090 48,997,651 22,603,215 1973 1984
TOTAL: $4,295,923 $69,029,669 $73,325,592 34,905,809
</TABLE>
Continued
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
(Continued)
December 31, 1994
<TABLE>
<CAPTION>
Reconciliation of Real Estate and Accumulated Depreciation for each of the
three years in the period ended December 31, 1994:
1994 1993 1992
Real Estate
<S> <C> <C> <C>
Balance at
beginning of year $70,308,815 $68,689,702 $74,275,897
Acquisition and
improvements 3,016,777 1,619,113 1,503,113
Sale of property - - (7,089,308)
Balance at
end of year $73,325,592 $70,308,815 $68,689,702
Accumulated Depreciation
Balance at
beginning of year $31,569,120 $28,403,204 $27,932,562
Depreciation expense 3,336,689 3,165,916 3,277,353
Sale of property - - (2,806,711)
Balance at end of year $34,905,809 $31,569,120 $28,403,204
</TABLE>
Note: The aggregate cost of the Partnership's real estate for federal
income tax purposes is $73,325,592 and the aggregate accumulated
depreciation for federal income tax purposes is $44,219,998.
[ARTICLE] 5
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1994 AND IS QUALIFIED IN
ITS ENTIREY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
[/LEGEND]
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1994
[PERIOD-END] DEC-31-1994
[CASH] 1,114,770
[SECURITIES] 0
[RECEIVABLES] 23,405
[ALLOWANCES] 0
[INVENTORY] 0
[CURRENT-ASSETS] 2,464,214
[PP&E] 74,371,223<F1>
[DEPRECIATION] (35,369,432)<F2>
[TOTAL-ASSETS] 42,604,180
[CURRENT-LIABILITIES] 4,751,341
[BONDS] 47,390,488<F3>
[COMMON] (9,537,649)<F4>
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[OTHER-SE] 0
[TOTAL-LIABILITY-AND-EQUITY] 42,604,180
[SALES] 13,652,413
[TOTAL-REVENUES] 0
[CGS] 0
[TOTAL-COSTS] 0
[OTHER-EXPENSES] 11,124,938<F5>
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 3,977,689
[INCOME-PRETAX] (1,450,214)
[INCOME-TAX] 0
[INCOME-CONTINUING] (1,450,214)
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] (1,450,214)
[EPS-PRIMARY] 0<F6>
[EPS-DILUTED] 0<F6>
<FN>
<F1>Includes apartment complexes of $73,325,592 & deferred expenses of $1,045,631.
<F2>Includes depreciation of 34,905,809 & amortization of $463,623.
<F4>Represents total deficit of general partners and limited partner of $(399,400)
and $(4,138,249), respectively.
<F3>Represents mortgage notes payable.
<F5>Includes operating expenses $5,601,775, real estate tax expense $2,101,222, &
depreciation and amortization of $ 3,421,941.
<F6>Net loss allocated $(14,502) to the G.P.'s and $(1,435,712) to the L.P.'s for
the 12 months ended 12/31/94. Average net income per unit of L.P. interest is
$(40.79) on 35,200 units outstanding.
</FN>
</TABLE>
