FORM 10-QSB.--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarterly or Transitional Report
U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period.........to.........
Commission file number 0-13083
CONSOLIDATED CAPITAL PROPERTIES V
(Exact name of small business issuer as specified in its charter)
California 94-2918560
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
55 Beattie Place, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices)
(864) 239-1000
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a)
CONSOLIDATED CAPITAL PROPERTIES V
CONSOLIDATED BALANCE SHEET
(Unaudited)
(in thousands, except unit data)
September 30, 1998
Assets
Cash and cash equivalents $ 798
Investments 4
Receivable and deposits 356
Restricted escrows 420
Other assets 245
Investment properties:
Land $ 1,969
Buildings and related personal property 19,467
21,436
Less accumulated depreciation (14,903) 6,533
$ 8,356
Liabilities and Partners' Deficit
Liabilities
Accounts payable $ 74
Tenant security deposit liabilities 58
Accrued property taxes 402
Other liabilities 147
Mortgage notes payable 11,024
Partners' Deficit
General partner $ (21)
Special limited partners (52)
Limited partners (179,537.20 units (3,276)
issued and outstanding) (3,349)
$ 8,356
See Accompanying Notes to Consolidated Financial Statements
b)
CONSOLIDATED CAPITAL PROPERTIES V
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Revenues:
Rental income $1,080 $1,037 $3,202 $3,140
Other income 44 45 149 156
Total revenues 1,124 1,082 3,351 3,296
Expenses:
Operating 544 500 1,560 1,579
General and administrative 52 39 151 125
Depreciation 297 278 846 816
Interest 191 204 612 614
Property taxes 115 104 357 305
Total expenses 1,199 1,125 3,526 3,439
Net loss before loss on
disposal of property $ (75) $ (43) $ (175) $ (143)
Loss on disposal of property -- (40) -- (40)
Net loss $ (75) $ (83) $ (175) $ (183)
Net loss allocated to
general partner (.2%) $ -- $ -- $ -- $ --
Net loss allocated to
limited partners (99.8%) (75) (83) (175) (183)
Net loss $ (75) $ (83) $ (175) $ (183)
Net loss per limited
partnership unit: $ (.41) $ (.46) $ (.97) $(1.02)
See Accompanying Notes to Consolidated Financial Statements
c)
CONSOLIDATED CAPITAL PROPERTIES V
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT
(Unaudited)
(in thousands, except unit data)
<TABLE>
<CAPTION>
Limited Special
Partnership General Limited Limited
Units Partner Partners Partners Total
<S> <C> <C> <C> <C> <C>
Original capital
Contributions 180,037 $ 1 $ -- $45,009 $45,010
Partners deficit at
December 31, 1997 179,537.20 $ (21) $ (52) $(3,101) $(3,174)
Net loss for the nine months
ended September 30, 1998 -- -- -- (175) (175)
Partners' deficit at
September 30, 1998 179,537.20 $ (21) $ (52) $(3,276) $(3,349)
<FN>
See Accompanying Notes to Consolidated Financial Statements
</FN>
</TABLE>
d)
CONSOLIDATED CAPITAL PROPERTIES V
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Nine Months Ended
September 30,
1998 1997
Cash flows from operating activities:
Net loss $ (175) $ (183)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation 846 816
Amortization of lease commission,
loan costs, and debt forgiveness (5) (15)
Loss on disposal of property -- 40
Change in accounts:
Receivables and deposits 101 120
Other assets -- (70)
Accounts payable (85) 152
Tenant security deposit liabilities (4) (30)
Accrued property taxes (63) (94)
Other liabilities (12) (27)
Net cash provided by operating activities 603 709
Cash flows from investing activities:
Property improvements and replacements (443) (551)
Withdrawals from restricted escrows 27 188
Dividend received on investments -- 3
Proceeds from sale of investments 100 --
Net cash used in investing activities (316) (360)
Cash flows from financing activities:
Payments on mortgage notes payable (63) (44)
Loan costs paid -- (9)
Net cash used in financing activities (63) (53)
Net increase in cash and cash equivalents 224 296
Cash and cash equivalents at beginning of period 574 292
Cash and cash equivalents at end of period $ 798 $ 588
Supplemental disclosure of cash flow information:
Cash paid for interest $ 598 $ 658
See Accompanying Notes to Consolidated Financial Statements
e)
CONSOLIDATED CAPITAL PROPERTIES V
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note A - Basis of Presentation
The accompanying unaudited consolidated financial statements of Consolidated
Capital Properties V (the "Partnership") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of ConCap Equities, Inc. (the "General Partner"), all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three and nine months
ended September 30, 1998, are not necessarily indicative of the results that may
be expected for the fiscal year ending December 31, 1998. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Partnership's annual report on Form 10-KSB for the
fiscal year ended December 31, 1997.
Investments consist of Equity Securities stock and are considered to be held-to-
maturity securities.
Certain reclassifications have been made to the 1997 information to conform to
the 1998 presentation.
Principles of Consolidation
The Partnership's consolidated financial statements include the accounts of its
lower-tier limited partnerships (Aspen Ridge Associates, Ltd., Sutton Place
CCPV, L.P. and 51 North High Street, L.P.). At December 31, 1997, the General
Partner's interest in each of these three limited partnerships was transferred
to three limited liability companies which are wholly-owned by the Partnership.
All significant interpartnership balances have been eliminated.
Note B - Transactions with Related Parties
The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all of the Partnership
activities, as provided for in the Partnership Agreement. Affiliates of the
General Partner provide property management and asset management services to the
Partnership. The Partnership Agreement provides for payments to affiliates for
services and as reimbursements of certain expenses incurred by affiliates on
behalf of the Partnership.
The Partnership has paid property management fees based upon collected gross
rental revenues for property management services in each of the nine months
ended September 30, 1998 and 1997. Property management fees of approximately
$172,000 and $153,000 were paid to affiliates of the General Partner for each of
the nine months ended September 30, 1998 and 1997, respectively. These fees are
included in operating expenses.
The Partnership Agreement also provides for reimbursement to the General Partner
and its affiliates for costs incurred in connection with the administration of
Partnership activities. Reimbursements for services of affiliates of
approximately $102,000 and $166,000 were paid to the General Partner and its
affiliates during each of the nine months ended September 30, 1998 and 1997,
respectively. Included in these reimbursements is approximately $11,000 and
$14,000 of construction oversight fees for the nine months ended September 30,
1998 and 1997, respectively. These reimbursements are included in operating and
general and administrative expenses. Also, during the nine months ended
September 30, 1998 and 1997, approximately $5,000 and $72,000, respectively, of
leasing commissions were paid to an affiliate of the General Partner. Leasing
commissions are capitalized and included in other assets.
During the nine months ended September 30, 1997, the Partnership paid an
affiliate of the General Partner approximately $5,500 for loan costs which were
capitalized and included in other assets in the accompanying Consolidated
Balance Sheet. These loan costs related to the refinancing of the Aspen Ridge
Apartments during the fourth quarter of 1996.
For the period from January 1, 1997 to August 31, 1997, the Partnership insured
its properties under a master policy through an agency affiliated with the
General Partner with an insurer unaffiliated with the General Partner. An
affiliate of the General Partner acquired, in the acquisition of a business,
certain financial obligations from an insurance agency which was later acquired
by the agent who placed the master policy. The agent assumed the financial
obligations to the affiliate of the General Partner which receives payment on
these obligations from the agent. The amount of the Partnership's insurance
premiums accruing to the benefit of the affiliate of the General Partner by
virtue of the agent's obligations was not significant.
During December 1997, an affiliate of the General Partner (the "Purchaser")
commenced a tender offer for limited partnership interests in the Partnership.
The Purchaser offered to purchase up to 70,000 of the outstanding units of
limited partnership interest in the Partnership, at $30 per Unit, net to the
seller in cash. During February 1998, the tender offer was completed and the
"Purchaser", acquired 43,795.8 units of limited partnership interest in the
Partnership. As a result, the "Purchaser" owns 44,005.8 units representing
24.51% of the total outstanding units.
On July 30, 1998, the Purchaser commenced a second tender offer for limited
partnership interests in the Partnership. The Purchaser offered to purchase up
to 40,000 of the outstanding units of limited partnership interest in the
Partnership, at $33 per unit, net to the seller in cash. The tender offer was
extended through November 16, 1998.
Note C - Commitment
The Partnership is required to maintain working capital reserves for normal
repairs, replacements, working capital and contingencies of not less than 5% of
Net Invested Capital, as defined in the Partnership Agreement. In the event
expenditures are made from these reserves, operating revenue shall be allocated
to such reserves to the extent necessary to maintain the foregoing level. Cash
and cash equivalents, tenant security deposits and investments totaling
approximately $862,000, are less than the reserve requirement of approximately
$1,760,000 at September 30, 1998. The Partnership intends to replenish the
working capital reserve from cash flow from operations after consideration of
any capital improvement needs of the properties. The Partnership's recent cash
flows from operations, however, have not been sufficient to replenish the
reserve and there is no assurance that future levels of cash flow from
operations will be adequate to accomplish this objective. The working capital
requirement must be met prior to any consideration for distributions to the
partners.
Note D - Change in Status of Non-Corporate General Partner
In the year ended December 31, 1991, the Partnership Agreement was amended to
convert the General Partner interests held by the non-corporate General Partner,
Consolidated Capital Group ("CCG"), to that of a special limited partner
("Special Limited Partners"). The Special Limited Partners do not have a vote
and do not have any of the other rights of a Limited Partner except the right to
inspect the Partnership's books and records; however, the Special Limited
Partners will retain the economic interest in the Partnership which they
previously owned as general partner. ConCap Equities, Inc. ("CEI") became the
sole general partner of the Partnership effective December 31, 1991. In
connection with CCG's conversion, a special allocation of gross income was made
to the Special Limited Partners in order to eliminate their tax basis negative
capital accounts.
After the conversion, the various owners of interests in the Special Limited
Partners transferred portions of their interests to CEI so that CEI now holds a
.2% interest in all allocable items of income, loss and distribution. The
difference between the Special Limited Partners' capital accounts for financial
statement and tax reporting purposes is being amortized as the components of the
timing differences which created the balance reverse.
Note E - Transfer of Control; Subsequent Event
On October 1, 1998, Insignia Financial Group, Inc. completed its merger with and
into Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust, with AIMCO being the surviving corporation (the
"Insignia Merger"). As a result of the Insignia Merger, AIMCO acquired control
of the General Partner. In addition, AIMCO also acquired approximately 51% of
the outstanding common shares of beneficial interest of Insignia Properties
Trust ("IPT"), the sole shareholder of the General Partner of the Partnership.
Also, effective October 1, 1998 IPT and AIMCO entered into an Agreement and plan
of Merger pursuant to which IPT is to be merged with and into AIMCO or a
subsidiary of AIMCO (the "IPT Merger"). The IPT Merger requires the approval of
the holders of a majority of the outstanding IPT Shares. AIMCO has agreed to
vote all of the IPT Shares owned by it in favor of the IPT Merger and has
granted an irrevocable limited proxy to unaffiliated representatives of IPT
to vote the IPT Shares acquired by AIMCO and its subsidiaries in favor of the
IPT Merger. As a result of AIMCO's ownership and its agreement, the vote of
no other holder of IPT is required to approve the merger. The General
Partner does not believe that this transaction will have a material effect on
the affairs and operations of the Partnership.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
This item should be read in conjunction with the consolidated financial
statements and other items contained elsewhere in this report.
The Partnership's investment properties consist of two apartment complexes and
one commercial property. The following table sets forth the average occupancy
of the properties for the nine months ended September 30, 1998 and 1997:
Average
Occupancy
1998 1997
Aspen Ridge Apartments
Chicago, Illinois 94% 95%
Sutton Place Apartments
Corpus Christi, Texas 91% 95%
51 North High Street Building
Columbus, Ohio 100% 94%
The General Partner attributes the decrease in occupancy at Sutton Place
Apartments to the purchase of new homes as a result of low mortgage rates and
the addition of new apartment complexes in the area. The General Partner
attributes the increase in occupancy at the 51 North High Street Building to
existing tenants leasing additional space and the addition of new tenants.
Results of Operations
The Partnership realized a net loss of approximately $75,000 and $175,000 during
the three and nine months ended September 30, 1998, respectively, compared to a
net loss of approximately $83,000 and $183,000 for three and nine months ended
September 30, 1997, respectively. The decrease in net loss for the comparable
nine month period ended September 30, 1998 is attributable to an increase in
rental revenue, a decrease in operating expenses and the absence of the loss on
disposal of property recognized during the three months ended September 30,
1997. The decrease in net loss was partially offset by an increase in property
tax expenses. The increase in rental income for the three months ended
September 30, 1998 is due to rental rate increases at all of the Partnership's
properties. The increase in occupancy at 51 North High Street along with rate
increases at both Aspen Ridge and Sutton Place offset the decreases in occupancy
during the third quarter of 1998 at both Aspen Ridge and Sutton Place. The
increase in operating expenses for the third quarter of 1998 as compared to the
same period of 1997 is due to the timing of expenses incurred during the two
periods. For the nine months ended September 30, 1998, property taxes increased
as compared to the same period of 1997. This increase is due to an increase in
the assessed value at Sutton Place and an increase in tax rates at Aspen Ridge
which occurred during the second half of 1997.
Included in operating expense for the nine months ended September 30, 1998, is
approximately $19,000 of major repairs and maintenance comprised primarily of
tennis court repairs and major landscaping at Aspen Ridge and Sutton Place
Apartments. For the nine months ended September 30, 1997, approximately $96,000
of major repairs and maintenance comprised primarily of gutter repairs, exterior
building improvements and exterior painting at Sutton Place Apartments.
As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of each of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expenses. As part of
this plan, the General Partner attempts to protect the Partnership from the
burden of inflation-related increases in expenses by increasing rents and
maintaining a high overall occupancy level. However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.
Liquidity and Capital Resources
At September 30, 1998, the Partnership had cash and cash equivalents of
approximately $798,000, compared to approximately $588,000 at September 30,
1997. The net increases in cash and cash equivalents for the nine months ended
September 30, 1998 and 1997 are $224,000 and $296,000, respectively. Net cash
provided by operating activities decreased due to the decrease in accounts
payable resulting from the timing of payments to vendors. Partially offsetting
this is an increase in other assets as a result of a 1997 debt restructuring.
Net cash provided by investing activities decreased due to the decrease in
withdrawals from restricted escrows as a result of less repair work being
preformed for the first nine months of 1998 offset by the maturity of US
Treasury Notes in 1998. Net cash used in financing activities decreased due to
the amortization of restructured debt on the 51 North High Street Building.
The Partnership is required to maintain working capital reserves for normal
repairs, replacements, working capital and contingencies of not less than 5% of
Net Invested Capital, as defined in the Partnership Agreement. In the event
expenditures are made from these reserves, operating revenue shall be allocated
to such reserves to the extent necessary to maintain the foregoing level. Cash
and cash equivalents, tenant security deposits and investments totaling
approximately $862,000 are less than the reserve requirement of approximately
$1,760,000 at September 30, 1998. The Partnership intends to replenish the
working capital reserve from cash flow from operations after consideration of
any capital improvement needs of the properties. The Partnership's recent cash
flows from operations, however, have not been sufficient to replenish the
reserve and there is no assurance that future levels of cash flow from
operations will be adequate to accomplish this objective. The working capital
requirement must be met prior to any consideration for distributions to the
partners.
The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the various properties to adequately maintain the
physical assets and other operating needs of the Partnership and to comply with
federal, state and local legal and regulatory requirements. Such assets are
currently thought to be sufficient for any near-term needs of the Partnership.
The General Partner is currently assessing the need for capital improvements at
each of the Partnership's properties. To the extent that additional capital
improvements are required, the Partnership's distributable cash flow, if any,
may be adversely affected at least in the short term. The mortgage indebtedness
of approximately $11,024,000, net of discount, matures at October 6, 2003,
November 1, 2003 and June 1, 2004 with balloon payments due at maturity. The
General Partner will attempt to refinance such indebtedness or sell the
properties prior to such maturity date. If the properties cannot be refinanced
or sold for a sufficient amount, the Partnership will risk losing such
properties through foreclosure. Future cash distributions will depend on the
levels of net cash generated from operations, refinancings, property sales and
the availability of cash reserves. The Partnership's distribution policy will be
reviewed on a quarterly basis. However, in light of the working capital reserve
deficiency discussed above, prior to any distributions being made by the
Partnership, the capital reserve deficiency will be replenished. Accordingly, it
is not expected that the Partnership will generate sufficient funds from
operations to permit distributions to its partners in 1998 or in the near
future. During the nine months ended September 30, 1998 and 1997, no
distributions were declared or paid.
Transfer of Control; Subsequent Event
On October 1, 1998, Insignia Financial Group, Inc. completed its merger with and
into Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust, with AIMCO being the surviving corporation (the
"Insignia Merger"). As a result of the Insignia Merger, AIMCO acquired control
of the Managing General Partner. In addition, AIMCO also acquired
approximately 51% of the outstanding common shares of beneficial interest of
Insignia Properties Trust ("IPT"), the sole shareholder of the Managing General
Partner of the Partnership. Also, effective October 1, 1998 IPT and AIMCO
entered into an Agreement and plan of Merger pursuant to which IPT is to be
merged with and into AIMCO or a subsidiary of AIMCO (the "IPT Merger"). The IPT
Merger requires the approval of the holders of a majority of the outstanding IPT
Shares. AIMCO has agreed to vote all of the IPT Shares owned by it in favor of
the IPT Merger and has granted an irrevocable limited proxy to unaffiliated
representatives of IPT to vote the IPT Shares acquired by AIMCO and its
subsidiaries in favor of the IPT Merger. As a result of AIMCO's ownership and
its agreement, the vote of no other holder of IPT is required to approve the
merger. The Managing General Partner does not believe that this transaction
will have a material effect on the affairs and operations of the Partnership.
Year 2000
GENERAL DESCRIPTION OF THE YEAR 2000 ISSUE AND THE NATURE AND EFFECTS OF THE
YEAR 2000 ON INFORMATION TECHNOLOGY (IT) AND NON-IT SYSTEMS
The Year 2000 Issue is the result of computer programs being written using two
digits rather than four to define the applicable year. The Partnership is
dependent upon the General Partner and its affiliates for management and
administrative services ("Managing Agent"). Any computer programs or hardware
that have date-sensitive software or embedded chips may recognize a date using
"00" as the year 1900 rather than the year 2000. This could result in a system
failure or miscalculations causing disruptions of operations, including, among
other things, a temporary inability to process transactions, send invoices, or
engage in similar normal business activities.
The Managing Agent has determined that it will be required to modify or replace
significant portions of its software and certain hardware so that those systems
will properly utilize dates beyond December 31, 1999. The Managing Agent
presently believes that with modifications or replacements of existing software
and certain hardware, the Year 2000 Issue can be mitigated. However, if such
modifications and replacements are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the Managing
Agent and the Partnership.
STATUS OF PROGRESS IN BECOMING YEAR 2000 COMPLIANT
The Managing Agent's plan to resolve the Year 2000 Issue involves the following
four phases: assessment, remediation, testing and implementation. To date, the
Managing Agent has fully completed its assessment of all information systems
that could be significantly affected by the Year 2000, and has begun the
remediation, testing and implementation phase on both hardware and software
systems. Assessments are continuing in regards to embedded systems in operating
equipment. The Managing Agent anticipates having all phases complete by June 1,
1999.
In addition to the areas the Partnership is relying on the Managing Agent to
verify compliance with, the Partnership has certain operating equipment,
primarily at the property sites, which needed to be evaluated for Year 2000
compliance. The focus of the General Partner was to the security systems,
elevators, heating-ventilation-air-conditioning systems, telephone systems and
switches, and sprinkler systems. The General Partner is currently engaged in the
identification of all non-compliant operational systems, and is in the process
of estimating the costs associated with any potential modifications or
replacements needed to such systems in order for them to be Year 2000 compliant.
It is not expected that such costs would have a material adverse affect upon
the operations of the Partnership.
RISK ASSOCIATED WITH THE YEAR 2000
The General Partner believes that the Managing Agent has an effective program in
place to resolve the Year 2000 issue in a timely manner and has appropriate
contingency plans in place for critical applications that could affect the
Partnership's operations. To date, the General Partner is not aware of any
external agent with a Year 2000 issue that would materially impact the
Partnership's results of operations, liquidity or capital resources. However,
the General Partner has no means of ensuring that external agents will be Year
2000 compliant. The General Partner does not believe that the inability of
external agents to complete their Year 2000 resolution process in a timely
manner will have a material impact on the financial position or results of
operations of the Partnership. However, the effect of non-compliance by
external agents is not readily determinable.
Other
Certain items discussed in this quarterly report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Reform Act") and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Partnership to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements. Such forward-looking statements speak only as of the date
of this quarterly report. The Partnership expressly disclaims any obligation or
undertaking to release publicly any updates of revisions to any forward-looking
statements contained herein to reflect any change in the Partnership's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
PART II - OTHER INFORMATION
ITEM 2. LEGAL PROCEEDING
In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled ROSALIE NUANES, ET AL. V. INSIGNIA
FINANCIAL GROUP, INC., ET AL. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs named as defendants, among others,
the Partnership, the General Partner and several of their affiliated
partnerships and corporate entities. The complaint purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging the acquisition by Insignia Financial Group, Inc.
("Insignia") and entities which were, at the time, affiliates of Insignia
("Insignia Affiliates") of interests in certain general partner entities, past
tender offers by Insignia Affiliates to acquire limited partnership units, the
management of partnerships by Insignia Affiliates as well as a recently
announced agreement between Insignia and Apartment Investment and Management
Company. The complaint seeks monetary damages and equitable relief, including
judicial dissolution of the Partnership. On June 25, 1998, the General Partner
filed a motion seeking dismissal of the action. In lieu of responding to the
motion, plaintiffs have recently filed an amended complaint. The General
Partner has filed demurrers to the amended complaint which are scheduled to be
heard on January 8, 1999. The General Partner believes the action to be without
merit, and intends to vigorously defend it.
The Partnership is unaware of any other pending or outstanding litigation that
is not of a routine nature. The General Partner believes that all such pending
or outstanding litigation will be resolved without a material adverse effect
upon the business, financial condition or operations of the Partnership.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a)Exhibits.
Exhibit 27, Financial Data Schedule, is filed as an exhibit to this report.
(b)Reports on Form 8-K.
None filed for the three month period ended September 30, 1998.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
CONSOLIDATED CAPITAL PROPERTIES V
By: CONCAP EQUITIES, INC.
General Partner
By: /s/Patrick Foye
Patrick Foye
Executive Vice President
By: /s/ Timothy R. Garrick
Timothy R. Garrick
Vice President - Accounting
(Duly Authorized Officer)
Date: November 12, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Consolidated Capital Properties V 1998 Third Quarter 10-QSB and is
qualified in its entirety by reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000725614
<NAME> CONSOLIDATED CAPITAL PROPERTIES V
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 798
<SECURITIES> 0
<RECEIVABLES> 356
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 21,436
<DEPRECIATION> 14,903
<TOTAL-ASSETS> 8,356
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 11,024
0
0
<COMMON> 0
<OTHER-SE> (3,349)
<TOTAL-LIABILITY-AND-EQUITY> 8,356
<SALES> 0
<TOTAL-REVENUES> 3,351
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,526
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 612
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (175)
<EPS-PRIMARY> (.97)<F2>
<EPS-DILUTED> 0
<FN>
<F1>Registrant has an unclassified balance sheet.
<F2>Multiplier is 1.
</FN>
</TABLE>
