SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- -----
EXCHANGE ACT OF 1934.
For the quarterly period ended June 30, 1997
-------------
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- -----
EXCHANGE ACT OF 1934.
For the transition period from to
------------ ------------
Commission file number 2-85270
-------
BALCOR EQUITY PENSION INVESTORS-I
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Illinois 36-3240345
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2355 Waukegan Road
Bannockburn, Illinois 60015
- ---------------------------------------- -------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 267-1600
--------------
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
<PAGE>
BALCOR EQUITY PENSION INVESTORS-I
(An Illinois Limited Partnership)
BALANCE SHEETS
June 30, 1997 and December 31, 1996
(UNAUDITED)
ASSETS
1997 1996
-------------- --------------
Cash and cash equivalents $ 34,395,329 $ 50,292,449
Accounts and accrued interest receivable 274,729 704,044
Prepaid expenses 126,457
Deferred expenses, net of accumulated
amortization of $252,417 in 1996 388,847
-------------- --------------
34,670,058 51,511,797
-------------- --------------
Investment in real estate:
Land 4,398,007
Buildings and improvements 48,195,641
--------------
52,593,648
Less accumulated depreciation 19,285,033
--------------
Investment in real estate, net
of accumulated depreciation 33,308,615
-------------- --------------
$ 34,670,058 $ 84,820,412
============== ==============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 37,986 $ 302,533
Due to affiliates 101,737 97,196
Security deposits 182,178
-------------- --------------
Total liabilities 139,723 581,907
-------------- --------------
Commitments and contingencies
Limited Partners' capital (359,229
Interests issued and outstanding) 35,037,378 84,282,848
General Partner's deficit (507,043) (44,343)
-------------- --------------
Total partners' capital 34,530,335 84,238,505
-------------- --------------
$ 34,670,058 $ 84,820,412
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PENSION INVESTORS-I
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the six months ended June 30, 1997 and 1996
(UNAUDITED)
1997 1996
-------------- --------------
Income:
Rental $ 1,503,517 $ 7,772,944
Service 400,830 801,662
Interest on short-term investments 721,156 315,962
-------------- --------------
Total income 2,625,503 8,890,568
-------------- --------------
Expenses:
Depreciation 455,830 1,851,112
Amortization of deferred expenses 388,847 55,217
Property operating 1,626,747 4,126,243
Real estate taxes 111,676 574,964
Property management fees 80,828 358,208
Administrative 262,486 421,013
-------------- --------------
Total expenses 2,926,414 7,386,757
-------------- --------------
(Loss) income before gain on sale of
properties and affiliate's minority
interest in income from joint venture (300,911) 1,503,811
Gain on sale of properties 15,391,870
Affiliate's minority interest in
income from joint venture (60,109)
-------------- --------------
Net income $ 15,090,959 $ 1,443,702
============== ==============
Net income allocated to General Partner $ 50,979 $ 313,236
============== ==============
Net income allocated to Limited Partners $ 15,039,980 $ 1,130,466
============== ==============
Net income per Limited
Partnership Interest (359,229 issued
and outstanding) $ 41.87 $ 3.15
============== ==============
Distributions to General Partner $ 513,679 $ 179,960
============== ==============
Distributions to Limited Partners $ 64,285,450 $ 1,619,648
============== ==============
<PAGE>
BALCOR EQUITY PENSION INVESTORS-I
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the six months ended June 30, 1997 and 1996
(UNAUDITED)
(CONTINUED)
Distributions per Limited Partnership
Interest:
Taxable $ 10.00 $ 3.50
============== ==============
Tax-exempt $ 204.30 $ 4.66
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PENSION INVESTORS-I
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the quarters ended June 30, 1997 and 1996
(UNAUDITED)
1997 1996
-------------- --------------
Income:
Rental $ 186,444 $ 4,054,306
Service 22,367 416,218
Interest on short-term investments 448,838 157,278
-------------- --------------
Total income 657,649 4,627,802
-------------- --------------
Expenses:
Depreciation 38,739 925,556
Amortization of deferred expenses 76,509 26,740
Property operating 86,686 2,176,548
Real estate taxes 15,578 287,535
Property management fees 13,505 179,543
Administrative 127,259 317,049
-------------- --------------
Total expenses 358,276 3,912,971
-------------- --------------
Income before gain on sale of property
and affiliate's minority interest in
income from joint venture 299,373 714,831
Gain on sale of property 9,503,775
Affiliate's minority interest in
income from joint venture (27,542)
-------------- --------------
Net income $ 9,803,148 $ 687,289
============== ==============
Net (loss) income allocated to General
Partner $ (13,522) $ 153,093
============== ==============
Net income allocated to Limited Partners $ 9,816,670 $ 534,196
============== ==============
Net income per Limited
Partnership Interest (359,229 issued
and outstanding) $ 27.33 $ 1.49
============== ==============
Distribution to General Partner None $ 89,980
============== ==============
Distribution to Limited Partners $ 21,865,781 $ 809,824
============== ==============
<PAGE>
BALCOR EQUITY PENSION INVESTORS-I
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the quarters ended June 30, 1997 and 1996
(UNAUDITED)
(CONTINUED)
Distribution per Limited Partnership
Interest:
Taxable None $ 1.75
============== ==============
Tax-exempt $ 70.00 $ 2.33
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PENSION INVESTORS-I
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
for the six months ended June 30, 1997 and 1996
(UNAUDITED)
1997 1996
-------------- --------------
Operating activities:
Net income $ 15,090,959 $ 1,443,702
Adjustments to reconcile net income
to net cash provided by operating
activities:
Gain on sale of properties (15,391,870)
Affiliate's minority interest in
income from joint venture 60,109
Depreciation of properties 455,830 1,851,112
Amortization of deferred expenses 388,847 55,217
Net change in:
Accounts and accrued interest
receivable 429,315 52,441
Prepaid expenses 126,457 (124,011)
Accounts payable (264,547) (21,302)
Due to affiliates 4,541 19,989
Accrued real estate taxes 255,533
Security deposits (182,178) (13,272)
-------------- --------------
Net cash provided by
operating activities 657,354 3,579,518
-------------- --------------
Investing activities:
Proceeds from property sales 49,575,000
Payment of selling costs (1,330,345)
--------------
Net cash provided by investing
activities 48,244,655
--------------
Financing activities:
Distributions to Limited Partners (64,285,450) (1,619,648)
Distributions to General Partner (513,679) (179,960)
Contribution from joint venture
partner - affiliate 45,552
Distribution to joint venture
partner - affiliate (15,068)
-------------- --------------
Net cash used in financing activities (64,799,129) (1,769,124)
-------------- --------------
<PAGE>
BALCOR EQUITY PENSION INVESTORS-I
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
for the six months ended June 30, 1997 and 1996
(UNAUDITED)
(CONTINUED)
Net change in cash and cash
equivalents (15,897,120) 1,810,394
Cash and cash equivalents at
beginning of year 50,292,449 11,305,552
-------------- --------------
Cash and cash equivalents at
end of period $ 34,395,329 $ 13,115,946
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PENSION INVESTORS-I
(An Illinois Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
1. Accounting Policies:
(a) In the opinion of management, all adjustments necessary for a fair
presentation have been made to the accompanying statements for the six months
and quarter ended June 30, 1997, and all such adjustments are of a normal and
recurring nature.
(b) For financial statement purposes, in previous years partners were allocated
income and loss in accordance with the profit and loss percentages in the
Partnership Agreement. In order for the capital accounts of the General Partner
and Limited Partners to appropriately reflect their respective remaining
economic interests as provided for in the Partnership Agreement, the General
Partner was allocated adjusted income during 1997 for financial statement
purposes.
2. Partnership Termination:
The Partnership Agreement provides for the dissolution of the Partnership upon
the occurrence of certain events, including the disposition of all interests in
real estate. During 1996, the Partnership sold four properties. The available
proceeds from the sales of these properties were distributed to Tax-exempt
Limited Partners in January 1997. During March 1997, the Partnership sold the
GSB Office Building. The available proceeds from this sale were distributed to
Tax-exempt Limited Partners in April 1997. During April 1997, the Partnership
sold its remaining property, the 8280 Greensboro Drive Office Building. The
available proceeds from this sale were distributed to Tax-exempt Limited
Partners in July 1997. The Partnership has retained a portion of the cash to
satisfy obligations of the Partnership as well as establish a reserve for
contingencies. The timing of the termination of the Partnership and final
distribution of cash will depend upon the nature and extent of liabilities and
contingencies which exist or may arise. Such contingencies may include legal
and other fees stemming from litigation involving the Partnership including,
but not limited to, the lawsuits discussed in Note 5 of Notes to the Financial
Statements. In the absence of any contingency, the reserves will be paid within
twelve months of the last property being sold. In the event a contingency
exists, reserves may be held by the Partnership for a longer period of time.
3. Transactions with Affiliates:
Fees and expenses paid and payable by the Partnership to affiliates during the
six months and quarter ended June 30, 1997 are:
Paid
----------------------
Six Months Quarter Payable
------------ --------- ----------
Reimbursement of expenses to
the General Partner, at cost $48,820 $23,135 $101,737
<PAGE>
4. Property Sales:
(a) In March 1997, the Partnership sold the GSB Office Building in an all cash
sale for $19,575,000. From the proceeds of the sale, the Partnership paid
$638,495 in selling costs. The basis of the property was $13,048,410, which is
net of accumulated depreciation of $14,610,352. For financial statement
purposes, the Partnership recognized a gain of $5,888,095 from the sale of this
property.
(b) In April 1997, the Partnership sold the 8280 Greensboro Drive Office
Building in an all cash sale for $30,000,000. From the proceeds of the sale,
the Partnership paid $691,850 in selling costs. The basis of the property was
$19,804,375, which is net of accumulated depreciation of $5,130,511. For
financial statement purposes, the Partnership recognized a gain of $9,503,775
from the sale of this property.
5. Contingencies:
(a) The Partnership is currently involved in a lawsuit whereby the Partnership,
the General Partner and certain third parties have been named as defendants
seeking damages relating to tender offers to purchase interests in the
Partnership and nine affiliated partnerships initiated by the third party
defendants in 1996. The defendants continue to vigorously contest this action.
The action has been dismissed with prejudice and plaintiffs have filed an
appeal. It is not determinable at this time whether or not an unfavorable
decision in this action would have a material adverse impact on the
Partnership's financial position, results of operations or liquidity. The
Partnership believes that it has meritorious defenses to contest the claims.
(b) The Partnership is currently involved in a lawsuit whereby the Partnership
and certain affiliates have been named as defendants alleging certain federal
securities law violations with regard to the adequacy and accuracy of
disclosures of information concerning, as well as the marketing efforts related
to, the offering of the Limited Partnership Interests of the Partnership. The
defendants continue to vigorously contest this action. A plaintiff class has
not yet been certified, and no determination of the merits have been made. It
is not determinable at this time whether or not an unfavorable decision in this
action would have a material adverse impact on the Partnership's financial
position, results of operations or liquidity. The Partnership believes that it
has meritorious defenses to contest the claims.
6. Subsequent Event:
In July 1997, the Partnership paid $29,674,988 ($95.00 per Tax-exempt Interest)
to the holders of Tax-exempt Interests representing a special distribution of
Net Cash Proceeds primarily from the sale of the 8280 Greensboro Drive Office
Building.
<PAGE>
BALCOR EQUITY PENSION INVESTORS-I
(An Illinois Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS
Balcor Equity Pension Investors-I (the "Partnership") is a limited partnership
formed in 1983 to make first mortgage loans and to invest in and operate
income-producing real property. The Partnership raised $179,614,500 from sales
of Limited Partnership Interests and utilized these proceeds to fund six loans
and acquire three real property investments. The Partnership accepted deeds in
lieu of foreclosure on two of the loans, acquired one of its collateral
properties at a foreclosure sale and accepted prepayments on the three
remaining loans. The Partnership sold four properties in 1996. In addition, the
Partnership sold one property in March 1997 and sold its remaining property in
April 1997.
Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1996 for a more complete understanding of
the Partnership's financial position.
Operations
- ----------
Summary of Operations
- ---------------------
The Partnership generated loss before gain on sale during 1997 as compared to
income before gain on sale during 1996 primarily due to the 1996 and 1997 sales
of properties which were generating income from operations and the full
amortization of leasing commissions related to the GSB and 8280 Greensboro
Drive office buildings during 1997. However, the Partnership recognized gains
of approximately $15,392,000 on the sales of the GSB and 8280 Greensboro Drive
office buildings during 1997. This was the primary reason net income increased
for the six months and quarter ended June 30, 1997 as compared to the same
periods in 1996. Further discussion of the Partnership's operations is
summarized below.
1997 Compared to 1996
- ---------------------
Discussions of fluctuations between 1997 and 1996 refer to both the six months
and quarters ended June 30, 1997 and 1996, unless otherwise noted.
Rental and service income, depreciation, real estate taxes and property
management fees decreased in 1997 compared to 1996 due to the sales of the
Oxford Square and Oxford Hills apartment complexes and the Park Center and
Pacific Center office buildings in 1996, and the sale of the GSB and the 8280
Greensboro Drive office buildings in March and April 1997, respectively.
<PAGE>
Increased cash available for short-term investment due to the investment of
proceeds received in connection with the 1997 and 1996 property sales prior to
distribution to Partners in 1997 was the primary reason for an increase in
interest income on short-term investments during 1997 as compared to 1996.
Amortization expense increased during 1997 as compared to 1996 due to the
write-off of the remaining capitalized leasing commissions related to the GSB
and 8280 Greensboro Drive office buildings which were sold in March and April
1997, respectively.
Property operating expense decreased during 1997 when compared to 1996. The
sales of the Oxford Square and Oxford Hills apartment complexes and the Park
Center and Pacific Center office buildings in 1996 and the sales of the 8280
Greensboro Drive and the GSB office buildings in 1997 resulted in a decrease in
property operating expense of $2,955,000. This decrease was partially offset by
increases of approximately $456,000 as a result of tenant improvements and
parking lot repairs at the GSB Office Building and tenant and common area
improvements at the 8280 Greensboro Drive Office Building.
Administrative expenses decreased in 1997 as compared to 1996 primarily due to
professional fees incurred in 1996 related to the valuation of the
Partnership's real estate assets and printing and postage expenses incurred in
1996 relating to the Partnership's response to a tender offer in the second
quarter 1996.
In March 1997, the Partnership sold the GSB Office Building and recognized a
gain on sale of $5,888,095. Additionally, the Partnership sold the 8280
Greensboro Drive Office Building in April 1997, and recognized a gain on sale
of $9,503,775.
In 1996, the Partnership sold the Pacific Center Office Building which was
owned through a joint venture. As a result, affiliate's minority interest in
income from joint venture ceased.
Liquidity and Capital Resources
- -------------------------------
The cash position of the Partnership as of June 30, 1997 decreased by
approximately $15,897,000 as compared to December 31, 1996 primarily due to
distributions to Partners in January and April 1997, which were partially
offset by the proceeds received from the sales of the GSB and the 8280
Greensboro Drive office buildings. Cash flow of approximately $657,000 provided
by operating activities consists primarily of the cash flow generated from the
property operations and interest income on short-term investments, which were
partially offset by administrative expenses. Cash provided by investing
activities of approximately $48,245,000 consists of net proceeds from the sales
of the GSB and the 8280 Greensboro Drive office buildings. Cash used in
financing activities of approximately $64,799,000 consists of distributions to
Partners. Additionally, in July 1997, the Partnership distributed proceeds of
approximately $29,675,000 to Tax-exempt Limited Partners, as discussed below.
<PAGE>
During 1996, the Partnership sold four properties. During March 1997, the
Partnership sold the GSB Office Building and during April 1997, the Partnership
sold its remaining property, the 8280 Greensboro Drive Office Building. The
Partnership has retained a portion of the cash to satisfy obligations of the
Partnership as well as establish a reserve for contingencies. The timing of the
termination of the Partnership and final distribution of cash will depend upon
the nature and extent of liabilities and contingencies which exist or may
arise. Such contingencies may include legal and other fees stemming from
litigation involving the Partnership including, but not limited to, the
lawsuits discussed in Note 5 of Notes to Financial Statements. In the absence
of any contingency, the reserves will be paid within twelve months of the last
property being sold. In the event a contingency exists, reserves may by held by
the Partnership for a longer period of time.
In March 1997, the Partnership sold the GSB Office Building in an all cash sale
for $19,575,000. From the proceeds of the sale, the Partnership paid $638,495
in selling costs. Pursuant to the terms of the sale, the Partnership is
required to retain $500,000 of the proceeds until December 1997. The remaining
proceeds were distributed to the Tax-exempt Limited Partners in April 1997. See
Note 4 of Notes to Financial Statements for additional information.
In April 1997, the Partnership sold the 8280 Greensboro Drive Office Building
in an all cash sale for $30,000,000. From the proceeds of the sale, the
Partnership paid $691,850 in selling costs. The majority of the proceeds were
distributed to the Tax-exempt Limited Partners in July 1997. See Note 4 of
Notes to Financial Statements for additional information.
Pursuant to the sale agreement for the Oxford Hills Apartments, $250,000 of the
sale proceeds was retained by the Partnership and was unavailable for
distribution until March 1997, at which time the funds were released in full.
Pursuant to the sale agreement for the Park Center Office Building, $200,000 of
the sale proceeds was retained by the Partnership and was unavailable for
distribution until June 1997, at which time the funds were released in full.
In July 1997, the Partnership paid $29,674,988 ($95.00 per Tax-exempt
Interest) to the holders of Tax-exempt Limited Partnership Interests,
representing a special distribution of Net Cash Proceeds primarily from the
sale of the 8280 Greensboro Drive Office Building. Including the July 1997
distribution, Limited Partners have received distributions totaling $244.35 per
$500.00 Taxable Interest (of which $231.36 represents Net Cash Receipts and
$12.99 represents Net Cash Proceeds) and $672.77 per $500.00 Tax-exempt
Interest (of which $307.78 represents Net Cash Receipts and $364.99 represents
Net Cash Proceeds). In accordance with the Partnership Agreement, Net Cash
Proceeds are allocated first to the Tax-exempt Limited Partners. Taxable and
Tax-exempt Limited Partners received quarterly distributions from Net Cash
Receipts. The Partnership discontinued quarterly Net Cash Receipts
distributions beginning the first quarter of 1997; therefore, Taxable Limited
Partners will not receive further quarterly distributions. However, Tax-exempt
Limited Partners are expected to receive a future Net Cash Proceeds
distribution from the release of the GSB Office Building sale holdback,
<PAGE>
however, there can be no assurance in this regard. In light of results to date,
Taxable Limited Partners will not receive aggregate distributions from the
Partnership equal to their original investment. However, Taxable Limited
Partners will share in the amounts allocated to the Repurchase Fund.
In February 1997, the Partnership discontinued the repurchase of Interests from
Limited Partners.
<PAGE>
BALCOR EQUITY PENSION INVESTORS-I
(An Illinois Limited Partnership)
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
- ------------------------------------------
(a) Exhibits:
(4) Certificate of Limited Partnership set forth as Exhibit 4.1 to Amendment
No. 2 to the Registrant's Registration Statement on Form S-11 dated October 4,
1983 (Registration No. 2-85270) and Form of Confirmation regarding Interests in
the Registrant set forth as Exhibit 4.2 to the Registrant's Report on Form 10-Q
for the quarter ended September 30, 1992 (Commission File No. 2-85270) are
incorporated herein by reference.
(10) Material Contracts:
(a) Agreement of Sale and attachment thereto relating to the sale of Oxford
Square Apartments, Casselberry, Florida, previously filed as Exhibit (2) to the
Registrant's Report on Form 8-K dated July 5, 1996 is incorporated herein by
reference.
(b) Agreement of Sale and attachment thereto relating to the sale of Oxford
Hills Apartments, St. Louis County, Missouri, previously filed as Exhibit (2)
to the Registrant's Report on Form 8-K dated October 16, 1996 is incorporated
herein by reference.
(c) (i) Agreement of Sale and attachment thereto relating to the sale of GSB
Office Building, Bala Cynwyd, Pennsylvania, previously filed as Exhibit (2) to
the Registrant's Report on Form 8-K dated December 2, 1996 is incorporated
herein by reference.
(ii) First Amendment to Agreement of Sale relating to the sale of the GSB
Office Building, Bala Cynwyd, Pennsylvania, previously filed as Exhibit (99)(a)
to the Registrant's Report on Form 8-K dated January 6, 1997 is incorporated
herein by reference.
(iii) Second Amendment to Agreement of Sale relating to the sale of the GSB
Office Building, Bala Cynwyd, Pennsylvania, previously filed as Exhibit (99)(b)
to the Registrant's Report on Form 8-K dated January 6, 1997 is incorporated
herein by reference.
(iv) Letter dated January 30, 1997 relating to the sale of the GSB Office
Building, Bala Cynwyd, Pennsylvania, previously filed as Exhibit (10)(c)(iv) to
the Registrant's Report on Form 10-K for the year ended December 31, 1996 is
incorporated herein by reference.
(d) (i) Agreement of Sale dated March 11, 1997 and attachment thereto relating
to the sale of the 8280 Greensboro Drive Office Building, McLean, Virginia,
previously filed as Exhibit (10)(d)(iii) to the Registrant's Report on Form
10-K for the year ended December 31, 1996 is incorporated herein by reference.
<PAGE>
(ii) Letter Agreement dated March 12, 1997 relating to the sale of the 8280
Greensboro Drive Office Building, McLean, Virginia, previously filed as Exhibit
(10)(d)(iv) to the Registrant's Report on Form 10-K for the year ended December
31, 1996 is incorporated herein by reference.
(iii) Second Amendment to Agreement of Sale relating to the sale of the 8280
Greensboro Drive Office Building, McLean, Virginia, previously filed as Exhibit
(10)(d)(v) to the Registrant's Report on Form 10-K for the year ended December
31, 1996 is incorporated herein by reference.
(iv) Third Amendment to Agreement of Sale relating to the sale of the 8280
Greensboro Drive Office Building, McLean, Virginia, previously filed as Exhibit
(10)(d)(iv) to the Registrant's Report on Form 10-Q for the quarterly period
ended March 31, 1997 is incorporated herein by reference.
(27) Financial Data Schedule of the Registrant for the six months ending June
30, 1997, is attached hereto.
(b) Reports on Form 8-K: No reports were filed on Form 8-K during the quarter
ended June 30, 1997.
<PAGE>
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.
BALCOR EQUITY PENSION INVESTORS-I
By: /s/ Thomas E. Meador
-----------------------------
Thomas E. Meador
President and Chief Executive
Officer (Principal Executive
Officer) of Balcor Equity Partners-I,
the General Partner
By: /s/ Jayne A. Kosik
------------------------------
Jayne A. Kosik
Managing Director and Chief Financial
Officer (Principal Accounting Officer)
of Balcor Equity Partners-I, the
General Partner
Date: August 12, 1997
-------------------
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 34395
<SECURITIES> 0
<RECEIVABLES> 275
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 34670
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 34670
<CURRENT-LIABILITIES> 140
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 34530
<TOTAL-LIABILITY-AND-EQUITY> 34670
<SALES> 0
<TOTAL-REVENUES> 18017
<CGS> 0
<TOTAL-COSTS> 1819
<OTHER-EXPENSES> 1107
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 15091
<INCOME-TAX> 0
<INCOME-CONTINUING> 15091
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15091
<EPS-PRIMARY> 41.87
<EPS-DILUTED> 41.87
</TABLE>
