UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended October 31, 1995
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 0-13260
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3174553
(State of organization) (IRS Employer Identification No.)
2 World Trade Center, New York, NY 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 392-1054
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
None None
Securities registered pursuant to Section 12(g) of the Act:
Units of Limited Partnership Interests
(Title of Class)
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's or any
amendment to this Form 10-K. [X]
State the aggregate market value of the voting stock held by nonaffiliates
of the registrant. Not Applicable
DOCUMENTS INCORPORATED BY REFERENCE
None<PAGE>
PART I.
ITEM 1. BUSINESS.
The Registrant, Dean Witter Realty Income Partnership I, L.P. (the
"Partnership"), is a limited partnership formed in August 1983 under
the Uniform Limited Partnership Act of the State of Delaware for the
purpose of investing primarily in income-producing office, industrial
and retail properties.
The Managing General Partner of the Partnership is Dean Witter
Realty Income Properties I Inc. (the "Managing General Partner"), a
Delaware corporation which is wholly owned by Dean Witter Realty Inc.
("Realty"). The Associate General Partner is Dean Witter Realty Income
Associates I, L.P. (the "Associate General Partner"), a Delaware
limited partnership, the general partner of which is Dean Witter Realty
Income Associates I Inc., a wholly-owned subsidiary of the Managing
General Partner. The Managing General Partner manages and controls all
aspects of the business of the Partnership. The terms of transactions
between the Partnership and its affiliates are set forth below in
footnote 8 to the Consolidated Financial Statements in Item 8 and in
Item 13.
The Partnership issued 92,780 units of limited partnership
interest (the "Units") with gross proceeds from the offering of
$92,780,000. The offering has been terminated and no additional Units
will be sold.
The proceeds from the offering were used to make equity
investments in four office properties, two office/research and
development properties and one retail property which were acquired
without mortgage debt. The properties are described in Item 2 below.
The Partnership considers its business to include one industry
segment, investment in real property. Financial information regarding
the Partnership is included in the Partnership's Financial Statements
in Item 8 below.
The Partnership's real property investments are subject to
competition from similar types of properties in the vicinities in which
they are located. Further information regarding competition and market
conditions where the Partnership's properties are located is set forth
in Item 7, "Management's Discussion and Analysis of Financial Condition
and Results of Operations."
The Partnership has no employees.
All of the Partnership's business is conducted in the United
States.
<TABLE>
ITEM 2. PROPERTIES.
The Partnership's principal offices are located at Two World Trade
Center, New York, New York 10048. The Partnership has no other
offices.
The Partnership owns directly or through a partnership interest
the following seven property interests, none of which is encumbered by
mortgage debt. Generally, the leases pertaining to the properties
provide for pass-throughs to the tenants of their pro-rata share of
certain operating expenses. In the opinion of the Managing General
Partner, all of the properties are adequately covered by insurance.
<CAPTION>
Year(s) Acquisition Net Rentable Type of Ownership
Completed/ Cost Area of land and
Property, location and type Acquired ($000) (000 sq. ft.) Improvements
<S> <C> <C> <C> <S>
Westwood 10
Westwood, MA 1986/1984,86 $8,952 122 Fee ownership
Office/research and
development building
1718 Connecticut Avenue 1982/1984 $8,213 35 99.9% General Part-
Washington, DC nership interest1
Office building
North Lake Plaza
Altamonte Springs, FL 1985/1984,86 $10,110 137 Fee ownership
Shopping center
Harborgate
Los Angeles, CA 1984/1984 $13,000 68 Fee ownership
Office Building
Arlington Business Center
Arlington Heights, IL 1984/1984 $9,721 98 Fee ownership
Three office/research and
development buildings
Carmel Park I and II
Charlotte, NC 1985/1985 $18,530 168 Fee ownership
Office buildings
Century Square
Pasadena, CA 1984/1985 $ 9,700 206 25% General Part-
Office building nership interest2
1. The .1% limited partnership interest was purchased by the Managing General Partner.
2. An affiliate of the Partnership, Dean Witter Realty Income Partnership II, L.P. purchased the
remaining 75% general partnership interest in the partnership. The total cost of the property was
$38.8 million.
Each property has been built with on-site parking facilities.
</TABLE>
An affiliate of the Partnership is the property manager for
Century Square, North Lake Plaza, 1718 Connecticut Avenue, Westwood 10,
Carmel Park and Harborgate.
Further information relating to the Partnership's properties
is included in Item 7 and footnotes 4 and 5 to the consolidated
financial statements in Item 8 below.
ITEM 3. LEGAL PROCEEDINGS.
On December 27, 1995, a class action lawsuit naming various public real
estate partnerships sponsored by Realty (including the Partnership and
its Managing General Partner and Associate General Partner), Realty,
Dean Witter Reynolds Inc. and others as defendants was filed in
Superior Court in California. The complaint alleges fraud, negligent
misrepresentation, intentional and negligent breach of fiduciary duty,
unjust enrichment and related claims and seeks compensatory and
punitive damages in unspecified amounts and injunctive and other
equitable relief. The defendants have removed the case to the United
States District Court for the Southern District of California. The
defendants have not yet responded to the complaint. The defendants
intend to vigorously defend the action.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No matter was submitted during the fourth quarter of the
fiscal year to a vote of Unit holders.
PART II.
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS.
An established public trading market for the Units does not
exist, and it is not anticipated that such a market will develop in the
future. Accordingly, information as to the market value of a Unit at
any given date is not available. However, the Partnership does allow
its limited partners (the "Limited Partners") to transfer their units
if a suitable buyer can be located.
As of January 25, 1996 there were 14,898 holders of limited
partnership interests.
The Partnership is a limited partnership and, accordingly,
does not pay dividends. It does, however, make quarterly distributions
of cash to its partners. Pursuant to the partnership agreement,
distributable cash, as defined, is paid 90% to the Limited Partners and
10% to the general partners (the "General Partners").
The Partnership paid quarterly cash distributions during the
year ended October 31, 1995 aggregating $18.75 per Unit to the Limited
Partners. The total distribution aggregated $1,932,915 with $1,739,625
distributed to the Limited Partners and $193,290 to the General
Partners. For the year ended October 31, 1994, the Partnership paid
quarterly cash distributions aggregating $15.00 per Unit to the Limited
Partners. The total distribution aggregated $1,546,333 with $1,391,700
distributed to the Limited Partners and $154,633 due to the General
Partners.
On November 28, 1995, the Partnership paid a cash distribution
of $5.00 per Unit to Limited Partners. The total distribution
aggregated $515,444 with $463,900 of cash distributed to the Limited
Partners and $51,544 due to the General Partners.
The Partnership anticipates making regular distributions to
its partners in the future.
Sale or financing proceeds will be distributed, to the extent
available, first, to each Limited Partner, until there has been a
return of the Limited Partner's capital contribution plus cumulative
distributions of distributable cash and sale or financing proceeds in
an amount sufficient to provide a 9% cumulative annual return on the
Limited Partner's adjusted capital contribution. Thereafter, any
remaining sale or financing proceeds will be distributed 85% to the
Limited Partners and 15% to the General Partners after the Managing
General Partner receives a brokerage fee of up to 3% of the selling
price of any equity investment.
Taxable income generally will be allocated in the same
proportions as distributions of distributable cash or sale or financing
proceeds (except that the General Partners must be allocated at least
1% of taxable income from sales or financings). In the event there is
no distributable cash or sale or financing proceeds, taxable income
will be allocated 90% to the Limited Partners and 10% to the General
Partners. Any tax loss will be allocated 90% to the Limited Partners
and 10% to the General Partners.
<PAGE>
<TABLE>
ITEM 6. SELECTED FINANCIAL DATA.
The following sets forth a summary of the selected financial data for
the Partnership:
<CAPTION>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
For the years ended October 31, 1995, 1994, 1993, 1992 and 1991
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Total revenues $ 8,000,566 $ 7,900,587 $ 7,211,147 $ 6,980,117 $ 7,640,551
1
Net (loss) income $ 1,535,137 $(10,175,630) $ 191,052 $ 459,493 $ 1,340,196
Net (loss) income per
Unit of
limited
partnership
interest $ 14.89 $(98.71) $ 1.85 $ 4.46 $13.00
Cash distributions
paid per Unit
of limited
partnership
interest2 $ 18.75 $ 15.00 $ 15.00 $ 15.00 $ 27.50
Total assets at
October 31 $58,295,735 $58,611,333 $73,292,198 $74,016,333 $74,968,981
Loan payable to bank
due after one year
(See note 6 to the
financial statements) $ - $ - $ 2,785,665 $ - $ -
The above financial data should be read in conjunction with the consolidated financial statements
and the related notes appearing in Item 8.
1. Includes a $10.8 million loss on impairment recorded for the Arlington Business Center and
Harborgate properties. See Item 7 and Item 8 Financial Statements, Note 4.
2. Distributions paid to limited partners include a return of capital per Unit of limited partnership
interest of $3.86, $15.00, $13.15, $10.54 and $14.50 for the years ended October 31, 1995, 1994,
1993, 1992 and 1991, respectively, calculated as the excess of cash distributed per Unit over
accumulated earnings per Unit not previously distributed.
</TABLE>
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
Liquidity and Capital Resources
The Partnership raised $92,780,000 in a public offering which was
terminated in 1984. The Partnership has no plans to raise additional
capital.
The Partnership has purchased six properties and has made one
investment in a partnership on an all-cash basis. The Partnership's
acquisition program has been completed. No additional investments are
planned.
The condition of the real estate market varies among different
regions of the country and by property type. The relative absence of
office construction as well as growth in business services has resulted
in absorption of office space in cities such as Boston, Charlotte and
suburban Chicago (locations of Westwood 10, Carmel Park, and Arlington
Business Center, respectively). In contrast, office vacancy levels in
southern California (locations of Harborgate and Century Square) remain
essentially unchanged from the prior year as certain large corporations
and financial companies continue to restructure and consolidate their
operations. In most markets, office construction is limited to build-
to-suit projects. Office/research and development properties in
certain regions are benefiting from growth in the computer,
communications and electronics industries. At retail properties, the
demand for space for the first half of 1995 was subdued as a result of
generally sluggish retail sales and competition from large power
centers, discounters and reorganized department stores.
The Partnership's liquidity depends on the cash flow from
operations of its properties and expenditures for tenant improvements
and leasing commissions in connection with the leasing of space. In
1995 all of the Partnership's properties generated positive cash flow
from operations, and it is anticipated that they will continue to do
so.
In 1995, Partnership cash flow from operations and distributions
received from its joint venture investment exceeded distributions to
investors and capital expenditures. The Partnership expects that such
cash inflows will be sufficient to fund capital expenditures and
distributions to investors in 1996. The Partnership increased the cash
distribution rate from 1.5% to 2% per Unit beginning with the cash
distribution for the first fiscal quarter of 1995 which were paid in
February 1995. In addition, beginning with that distribution, the
General Partners no longer defer their share of cash distributions.
In 1995, the Partnership incurred approximately $782,000 of tenant
improvements and leasing commissions, of which approximately $480,000
was related to the Westwood 10 property, and approximately $141,000 was
related to the Carmel Park I and II properties. The Partnership also
contributed approximately $388,000 to the Century Square joint venture,
primarily for its share of leasing commissions in connection with the
new Countrywide lease described below.
Effective January 1, 1995, the lease term of Countrywide Credit
Industries, Inc., the largest tenant at the Century Square office
building, was extended from March 2000 to March 2010. The rental rate
will remain at the 1994 rate through 2004, rather than increasing, as
provided for under the original leases. After 2004, rents will
increase ten percent for the remainder of the lease term. The
restructured lease is expected to result in stable cash flow from the
property for a total of fifteen years, at a higher level than
comparable current market rents. Given the current market and economic
conditions in Pasadena, CA, and the credit-worthiness of Countrywide,
the Managing General Partner considers the terms of the new agreement
favorable.
Prior to 1990, the Partnership had borrowed funds from an affiliate
of the Managing General Partner to fund tenant improvements, capital
expenditures and other partnership expenditures. As of October 31,
1995, $4,032,527 was outstanding on this loan. The loan bears interest
at the prime rate (8.75% as of October 31, 1995). Interest expense on
the affiliate loan amounted to $342,221, $281,361 and $287,091 for the
years ended October 31, 1995, 1994 and 1993, respectively.
On November 28, 1995 the Partnership paid the fourth quarter cash
distribution of $5.00 per Unit to Limited Partners. The total
distribution aggregated $515,444 with $463,900 of cash distributed to
the Limited Partners and $51,544 to the General Partners.
Except as described above and in the consolidated financial
statements, the Managing General Partner is not aware of any trends or
events, commitments or uncertainties that will impact liquidity in a
material way.
Operations
Fluctuations in the Partnership's operating results for the year
ended October 31, 1995 compared to 1994 and for the year ended October
31, 1994 compared to 1993 are primarily attributable to the following:
The slight decrease in rental revenue in 1995 compared to 1994
resulted primarily from lower rental revenue on new leases at the
Arlington Business Center offset by increases in rent resulting from
increased occupancy at the Westwood 10 property. The increase in
rental revenue in 1994 compared to 1993 was primarily attributable to
increased average occupancy levels at 1718 Connecticut and Westwood 10
during 1994. As described earlier, the lease rate for Countrywide
Credit, the largest tenant at the Century Square property, will remain
level through 2004.
The increase in interest and other revenue in 1995 compared to 1994
is primarily due to tenant reimbursements at Arlington. Interest
income also increased because of increases in the amount of funds
invested as well as increases in interest rates. The decrease in 1994
compared to 1993 is primarily due to the receipt of lease termination
fees in 1993 of $52,500 from a tenant at the Arlington Business Center
and $160,000 from another tenant at Carmel Park I. This decrease was
partially offset by an increase in interest income resulting from
greater funds invested in short-term investments as well as an increase
in interest rates.
The decrease in property operating expenses for the year ended 1995
when compared to 1994 is primarily due to real estate tax refunds at
the 1718 Connecticut and Harborgate properties. The increase in
operating expense in 1994 compared to 1993 is primarily attributable
to increases in real estate taxes in 1994 at Arlington Business Center
as a result of an increase in the assessed value of the property and
at Harborgate because of the absence of a refund which had been
received in 1993. These increases were partially offset by a real
estate tax refund received at Westwood 10 in 1994.
The decreases in depreciation and amortization for the year ended
1995 compared to 1994 are due to the lower depreciable basis of the
Harborgate office building and Arlington Business Center properties,
as a result of writedowns recorded in October 1994. The increases in
depreciation and amortization in 1994 compared to 1993 correspond to
increased expenditures for tenant improvement and leasing commissions
in 1994.
The decrease in general and administrative expense in 1994 as
compared to 1993 is primarily due to decreased legal fees in 1994.
In fiscal 1994, the Partnership recorded losses on impairment of
the Harborgate and Arlington Business Center properties. See Note 4
to the Consolidated Financial Statements in Item 8.
A summary of the office, retail and research and development
building markets where the Partnership's properties are located and the
performance of each property is as follows:
In Pasadena, California, the location of the Century Square office
building, the overall office market vacancy rate is approximately 15%,
and it is expected to remain at approximately the same level as there
has been a noticeable lack of movement in that market. However,
Century Square remained 100% leased during the year. The property's
largest tenant, Countrywide Credit, occupied 84% of the properties
rentable space. No leases are due to expire in 1996.
The Los Angeles, California office market, the location of
Harborgate, is weak primarily as a result of cuts in the defense and
aerospace industries. The vacancy rate (including sublet space) in
this market has increased to approximately 29%. Although the property
is well located within this market, there are limited number of tenants
seeking to lease space in this area. Reduced tenant demand, an
oversupply of available space and competition from surrounding office
markets impedes improvement in this market. At October 31, 1995,
occupancy at the property was 84%. The property is leased to 10
tenants. The lease to U.S. Sprint Communications, which occupies
approximately 52% of the property's net rentable space, was renewed
until October 31, 2000 subject to certain termination rights. Included
in the U.S. Sprint lease renewal are tenant improvement costs
approximating $490,000 to be spent by the Partnership over the next two
to three years. Lease expirations in 1996 total 9.8% of the total
rentable space.
Arlington Business Center, a research and development building is
located in Arlington Heights, Illinois. An improved midwest economy
and the absence of office construction during the past few years have
reduced office vacancy levels in this suburban Chicago market. The
vacancy rate in this market is approximately 17%. However, as of
October 31, 1995, occupancy at the property was 95%. The property is
leased to 8 tenants. Tenants occupying more than 10% of rentable space
are Racal Data Communications, CTC International, Inc., Digital
Equipment, Electronic Prepress and Pitney Bowes. Digital Equipment
lease was due to expire in 1996, but Digital renewed for five years.
No other leases expire in 1996.
Westwood 10, located in Westwood, Massachusetts, has recently
experienced some easing of the oversupply of research and development
buildings. The vacancy rate in this market is approximately 22%. As
of October 31, 1995, the property was 85% leased to 6 tenants. Tenants
occupying more than 10% of rentable space are Executone Information
Systems, Mobile Media X-Ray, and Mitek Surgical Products. Leases
totaling 3.3% of rental space expire in 1996.
The Washington D.C., office market in which 1718 Connecticut is
located has a vacancy rate of approximately 12%. As of October 31,
1995, occupancy at the property was 100%. The property is leased to
9 tenants. Tenants occupying more than 10% of rentable space are
Policy Studies Association, Island Press, Embassy of Argentina,
Association of American Publishers, and the Door Store. No leases
expire in 1996.
The Charlotte, North Carolina office market, in which Carmel Park
is located, has a vacancy rate of approximately 4%. In this market,
there is little new construction and rental rates have increased
slightly. Carmel Park's occupancy was 98% as of October 31, 1995. The
property is leased to 18 tenants. Tenants occupying more than 10% of
rentable space are CIGNA and Royal Indemnity. Leases totaling less
than 1% of rental space expire in 1996.
Altamonte Springs, Florida, the location of the North Lake Plaza
Shopping Center, is a difficult retail market where overbuilding has
exerted downward pressure on rents and the market vacancy rate is
approximately 20%. Occupancy at the property as of October 31, 1995
was 91%. The property was leased to 13 tenants as of October 31, 1995.
Tenants occupying more than 10% of rentable space are Marshalls and
Burlington Coat Factory. In March 1992, Home Depot sub-leased its
space to Burlington Coat Factory for the remainder of the lease term.
Home Depot will remain obligated to pay rent under its lease until the
lease expires. No leases expire in 1996.
Inflation
Inflation has been consistently low during the periods presented
in the financial statements and, as a result, has not had a significant
effect on the operations of the Partnership or its properties.
<PAGE>
<TABLE>
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
INDEX
Page
<S> <C>
(a) Financial statements
Independent Auditors' Report 13
Consolidated Balance Sheets at October 31, 1995 and 1994 14
Consolidated Statements of Operations for the years ended
October 31, 1995, 1994 and 1993 15
Consolidated Statements of Partners' Capital for the years
ended October 31, 1995, 1994 and 1993 16
Consolidated Statements of Cash Flows for the years ended
October 31, 1995, 1994 and 1993 17
Notes to Consolidated Financial Statements 18-25
(b) Financial statement schedule
Real Estate and Accumulated Depreciation III 31-32
All schedules other than those indicated above have been omitted because either
the required information is not applicable or the information is shown in the
consolidated financial statements or notes thereto.
</TABLE>
<PAGE>
Independent Auditors' Report
To The Partners of
Dean Witter Realty Income Partnership I, L.P.:
We have audited the accompanying consolidated balance sheets of Dean
Witter Realty Income Partnership I, L.P. and consolidated partnerships
(the "Partnership") as of October 31, 1995 and 1994, and the related
consolidated statements of operations, partners' capital, and cash
flows for each of the three years in the period ended October 31, 1995.
Our audits also included the financial statement schedule listed in the
Index at Item 8. These financial statements and financial statement
schedule are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on the financial statements and
the 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, such financial statements present fairly in all
material respects, the financial position of Dean Witter Realty Income
Partnership I, L.P. and consolidated partnerships as of October 31,
1995 and 1994, and the results of their operations and their cash flows
for each of the three years in the period ended October 31, 1995 in
conformity with generally accepted accounting principles. Also, in our
opinion, such financial statement schedule, when considered in relation
to the basic consolidated financial statements taken as a whole,
presents fairly in all material respects the information set forth
therein.
/s/Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
New York, New York
January 24, 1996
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
CONSOLIDATED BALANCE SHEETS
October 31, 1995 and 1994
<CAPTION>
ASSETS
1995 1994
<S> <C> <C>
Cash and short-term investments, at cost,
which approximates market $ 3,572,041 $ 2,230,923
Real estate:
Land 12,230,400 12,230,400
Buildings and improvements 56,550,871 55,830,515
68,781,271 68,060,915
Accumulated depreciation 24,089,561 21,555,012
44,691,710 46,505,903
Investment in joint venture 8,341,537 8,489,748
Deferred leasing commissions, net 260,912 418,725
Other assets 1,429,535 966,034
$ 58,295,735 $ 58,611,333
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued liabilities $ 808,003 $ 791,896
Security deposits 210,413 167,218
Due to affiliate 4,032,527 4,048,307
Deferred distributions 2,467,674 2,429,016
7,518,617 7,436,437
Partners' capital (deficiency)
General partners (3,289,800) (3,250,024)
Limited partners ($1,000 per Unit,
92,780 Units issued) 54,066,918 54,424,920
Total partners' capital 50,777,118 51,174,896
$ 58,295,735 $ 58,611,333
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the years ended October 31, 1995, 1994 and 1993
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Revenues:
Rental $7,110,106 $7,141,940 $6,355,640
Equity in earnings of
joint venture 474,263 586,104 562,451
Interest and other 416,197 172,543 293,056
8,000,566 7,900,587 7,211,147
Expenses:
Property operating expenses 2,963,316 3,064,472 2,962,090
Depreciation 2,534,549 2,949,356 2,822,776
Amortization 219,225 292,590 254,160
Interest 342,221 490,260 468,069
General and administrative 406,118 442,475 513,000
Losses on impairment of real estate - 10,837,064 -
6,465,429 18,076,217 7,020,095
Net income (loss) $ 1,535,137 $(10,175,630) $ 191,052
Net income (loss) allocated to :
Limited partners $ 1,381,623 $ (9,158,067) $ 171,947
General Partners 153,514 (1,017,563) 19,105
$ 1,535,137 $(10,175,630) $ 191,052
Net income (loss) per Unit of limited
partnership interest $ 14.89 $( 98.71) $ 1.85
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
For the years ended October 31, 1995, 1994 and 1993
<CAPTION>
Limited General
Partners Partners Total
<S> <C> <C> <C>
Partners' capital (deficiency)
at November 1, 1992 $66,194,440 $(1,942,300) $64,252,140
Net income 171,947 19,105 191,052
Distributions (1,391,700) (154,633) (1,546,333)
Partners' capital (deficiency)
at October 31, 1993 64,974,687 (2,077,828) 62,896,859
Net loss (9,158,067) (1,017,563) (10,175,630)
Distributions (1,391,700) (154,633) (1,546,333)
Partners' capital (deficiency)
at October 31, 1994 54,424,920 (3,250,024) 51,174,896
Net income 1,381,623 153,514 1,535,137
Distributions (1,739,625) (193,290) (1,932,915)
Partners' capital (deficiency)
at October 31, 1995 $54,066,918 $(3,289,800) $50,777,118
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended October 31, 1995, 1994 and 1993
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 1,535,137 $(10,175,630) $ 191,052
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation 2,534,549 2,949,356 2,822,776
Amortization 219,225 292,590 254,160
Equity in earnings of joint venture (474,263) (586,104) (562,451)
Losses on impairment of real estate - 10,837,064 -
Deferred leasing commissions (61,412) (204,225) (195,063)
Other assets (463,501) (74,984) 316,160
Accounts payable and accrued liabilities 16,107 (1,521) 90,264
Security deposits 43,195 4,607 8,292
Net cash provided by operating activities 3,349,037 3,041,153 2,925,190
Cash flows from investing activities:
Additions to real estate (720,356) (692,220) (726,579)
Distributions from joint venture 1,009,977 1,171,262 991,540
Investment in joint venture (387,503) (10,358) (8,989)
Net cash (used in) provided by investing
activities (97,882) 468,684 255,972
Cash flows from financing activities:
Decrease in due to affiliates (15,780) - (2,738,664)
Cash distributions (1,894,257) (1,391,700) (1,391,700)
(Repayment) proceeds from loan payable to bank - (3,116,621) 3,116,621
Decrease (increase) in restricted cash - 250,000 (250,000)
Net cash used in financing activities (1,910,037) (4,258,321) (1,263,743)
Increase (decrease) in cash and cash equivalents 1,341,118 (748,484) 1,917,419
Cash and cash equivalents at beginning
of fiscal year 2,230,923 2,979,407 1,061,988
Cash and cash equivalents at end of fiscal year $ 3,572,041 $ 2,230,923 $ 2,979,407
Supplemental disclosure of cash flow information:
Cash paid for interest $ 342,221 $ 490,260 $ 468,069
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
1. The Partnership
Dean Witter Realty Income Partnership I, L.P. (the "Partnership") is
a limited partnership organized under the laws of the State of Delaware
in 1983. The Partnership is managed by Dean Witter Realty Income
Properties I Inc. (the "Managing General Partner"). The Partnership's
fiscal year ends on October 31.
In 1984, the Partnership issued 92,780 units of limited partnership
interest (the "Units") for $92,780,000. No additional Units will be
sold. The proceeds of the offering were used to make equity
investments in income-producing office, industrial and retail
properties which were not encumbered by debt when acquired.
2. Summary of Significant Accounting Policies
The financial statements include the accounts of the Partnership and
1718 Connecticut, Ltd. on a consolidated basis. The Partnership's 25%
interest in the Century Square property is accounted for on the equity
method.
The Partnership's records are maintained on the accrual basis of
accounting for financial reporting and tax purposes. The preparation
of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
The carrying value of real estate includes the purchase price paid by
the Partnership and acquisition fees and expenses. Costs of
improvements to the properties are capitalized, and repairs are
expensed. Depreciation is recorded on the straight-line method.
Cash and cash equivalents consist of cash and highly liquid investments
with maturities, when purchased, of three months or less.
At least annually, and more often if circumstances dictate, the
Partnership evaluates the recoverability of the net carrying value of
its real estate. As part of this evaluation, the fair values of each
of the properties are estimated (in some cases with the assistance of
outside real estate consultants) based on discounted cash flows. The
fair values are compared to the properties' carrying amounts in the
financial statements. A deficiency in fair value relative to carrying
amount is an indication of the need for a writedown due to impairment.
In such case, the expected future net cash flows from the property are
estimated for a period of approximately five years, along with
estimated sales proceeds at the end of the period. If the total of
these future undiscounted cash flows were less than the carrying amount
of the property, the property would be written down to its fair value,
and a loss on impairment recognized by a charge to earnings. The
Partnership's policy complies with Statement of Financial Accounting
Standards No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed Of".
Because the determination of fair value is based upon projections of
future economic events such as property occupancy rates, rental rates,
operating cost inflation and market capitalization rates which are
inherently subjective, the amounts ultimately realized at disposition
may differ materially from the net carrying value as of October 31,
1995. The cash flows used to determine fair value and net realizable
value are based on good faith estimates and assumptions developed by
the Managing General Partner. Unanticipated events and circumstances
may occur and some assumptions may not materialize; therefore actual
results may vary from the estimates and the variances may be material.
The Partnership may provide additional write-downs which could be
material in subsequent years if real estate markets or local economic
conditions change.
Deferred leasing commissions are amortized over the applicable lease
terms.
Rental income is accrued on a straight-line basis over the terms of the
leases. Accruals in excess of amounts payable by tenants pursuant to
their leases (resulting from rent concessions or rents which
periodically increase over the term of a lease) are recorded as
receivables and included in other assets.
Net income (loss) per Unit amounts are calculated by dividing net
income (loss) allocated to Limited Partners, in accordance with the
Partnership Agreement, by the weighted average number of Units
outstanding.
No provision for income taxes has been made in the financial
statements, since the liability for such taxes is that of the partners
rather than the Partnership.
For income tax purposes, Partnership results are reported for the
calendar year. The accounting policies used for tax reporting purposes
differ from those used for financial reporting as follows: (a)
depreciation is calculated using accelerated methods, (b) rental income
is recognized based on the payment terms in the applicable leases, and
(c) writedowns for impairment of real estate are not deductible. In
addition, offering costs are treated differently for tax and financial
reporting purposes. The tax basis of the Partnership's assets and
liabilities is approximately $3 million higher than the amounts
reported for financial statement purposes.
3. Partnership Agreement
The Partnership Agreement provides that distributable cash, as defined,
will be paid 90% to the Limited Partners and 10% to the General
Partners.
Sale or financing proceeds will be distributed, to the extent
available, first, to each Limited Partner, until there has been a
return of the Limited Partner's capital contribution, plus cumulative
distributions of distributable cash and sale or financing proceeds, in
an amount sufficient to provide a 9% cumulative annual return on the
Limited Partner's adjusted capital contribution. Thereafter, any
remaining sale or financing proceeds will be distributed 85% to the
Limited Partners and 15% to the General Partners after the Managing
General Partner receives a brokerage fee of up to 3% of the selling
price of any equity investment.
Taxable income generally will be allocated in the same proportions as
distributions of distributable cash or sale or financing proceeds
(except that the General Partners must be allocated at least 1% of
taxable income from sales or financings). In the event there is no
distributable cash or sale or financing proceeds, taxable income will
be allocated 90% to the Limited Partners and 10% to the General
Partners. Any tax loss will be allocated 90% to the Limited Partners
and 10% to the General Partners.
Distributions paid to limited partners include a return of capital per Unit
of limited partnership interest of $3.86, $15.00, and $13.15, for the years
ended October 31, 1995, 1994 and 1993, respectively, calculated as the
excess of cash distributed per Unit over the accumulated earnings per Unit
not previously distributed.
<PAGE>
<TABLE>
4. Real Estate Investments
The locations, years of acquisition and net carrying values of the
properties are as follows:
<CAPTION>
Net Carrying Value
Year of at October 31,
Property Acquisition 1995 1994
<S> <C> <C> <C>
Westwood 10,
Westwood, MA 1984,1986 $ 8,330,901 $ 8,237,326
1718 Connecticut,
Washington, DC 1984 6,172,068 6,420,677
North Lake Plaza
Altamonte
Springs, FL 1984,1986 8,431,300 8,646,459
Harborgate
Los Angeles, CA 1984 3,953,133 4,100,000
Arlington Business
Center, Arlington
Heights, IL 1984 3,303,088 3,650,000
Carmel Park
Charlotte, NC 1985 14,501,220 15,451,441
$44,691,710 $46,505,903
</TABLE>
In fiscal 1994, in accordance with its policies for evaluating the recover-
ability of its real estate, the Partnership concluded that the values of
the Harborgate office building and Arlington Business Center were impaired.
Accordingly, in fiscal 1994, the Partnership recognized losses on impairment
of these properties of approximately $6,130,000 and $4,707,000, respectively.
5. Investment in Joint Venture
Century Square, Pasadena, California
In 1985, the Partnership purchased, for $9.7 million, a 25% general partnership
interest in the partnership (the "Joint Venture") which owns the property, an
office building. An affiliate of the Partnership, Dean Witter Realty Income
Partnership II, L.P., purchased the remaining 75% general partnership interest.
Cash flow and profits and losses are allocated to the Partnership and the
affiliate according to their interests in the Joint Venture.
In fiscal 1994, the Joint Venture settled a lawsuit with the developer of the
property relating to certain defects in the parking structure and heating,
ventilation and air conditioning systems. Pursuant to the settlement, the
Joint Venture received $100,000 and $835,000 in 1995 and 1994, respectively.
The Partnership's share of these proceeds were $25,000 and $208,750 in 1995
and 1994, respectively, recorded as part of the distributions from the Joint
Venture. The Joint Venture will receive an additional $100,000 in fiscal
year 1996.
<TABLE>
Summarized balance sheet information of the Joint Venture is as follows:
<CAPTION>
October 31,
1995 1994
<S> <C> <C>
Land and building, net $32,185,831 $33,129,398
Other 2,519,804 2,093,361
Total assets $34,705,635 $35,222,759
Liabilities $ 281,658 $ 205,938
Partners' capital 34,423,977 35,016,821
Total liabilities and capital $34,705,635 $35,222,759
</TABLE>
<TABLE>
Summarized results of operations of the Joint Venture are as follows:
<CAPTION>
Year ended October 31,
1995 1994 1993
<S> <C> <C> <C>
Rental income $5,403,499 $5,939,457 $5,911,475
Other income 21,519 33,383 14,532
5,425,018 5,972,840 5,926,007
Property operating expenses 1,917,052 2,110,092 2,147,453
Depreciation and amortization 1,610,915 1,518,333 1,528,750
3,527,967 3,628,425 3,676,203
Net income $1,897,051 $2,344,415 $2,249,804
/TABLE
<PAGE>
<TABLE>
Activity in the Investment in Joint Venture is as follows:
<CAPTION>
Year ended October 31,
1995 1994 1993
<S> <C> <C> <C>
Investment at beginning
of year $ 8,489,748 $9,064,548 $9,484,648
Equity in earnings 474,263 586,104 562,451
Distributions (1,009,977) (1,171,262) (991,540)
Additional investments 387,503 10,358 8,989
Investment at end of year $ 8,341,537 $8,489,748 $9,064,548
</TABLE>
The accounting policies employed by the Joint Venture are the same as
those of the Partnership.
6. Loan Payable to Bank
In December 1992, the Partnership established a $3.8 million secured line
of credit with a bank. Borrowings bore interest, at the prime rate plus
three quarters percent and were repayable in 18 consecutive equal
payments beginning September 1, 1994. Approximately $2.7 million of the
initial draw under this line of credit was used to repay amounts borrowed
from an affiliate of the Managing General Partner in fiscal year 1993.
In September 1994, this loan was repaid in its entirety.
7. Leases
<TABLE>
Minimum future rental income under noncancellable operating leases as of
October 31, 1995 is as follows:
<S> <C>
Year ending October 31:
1996 $5,472,017
1997 4,702,998
1998 3,307,938
1999 2,631,302
2000 1,760,819
Thereafter 1,043,980
Total $18,919,054
</TABLE>
The Partnership has determined that all leases relating to its
properties are operating leases. The lease terms range from three to
fifteen years, and generally provide for fixed minimum rents with
rental escalation and/or expense reimbursement clauses.
8. Related Party Transactions
An affiliate of the Managing General Partner provided property
management services for six properties in 1995, 1994 and 1993. The
Partnership paid the affiliate management fees (included in property
operating expenses) of $186,538, $232,272 and $221,284 for the years
ended October 31, 1995, 1994 and 1993, respectively.
Another affiliate of the Managing General Partner performs
administrative functions and processes certain investor and tax
information on behalf of the Partnership. In fiscal years 1995, 1994
and 1993 the affiliate was reimbursed $247,518, $278,250 and $278,500,
respectively (included in general and administrative expenses) for
these services. As of October 31, 1995, the affiliate was owed $40,092
for these services.
Prior to 1990, the Partnership borrowed funds from an affiliate of the
Managing General Partner to fund the cost of tenant improvements,
capital expenditures and other Partnership expenditures. The loan
bears interest at the prime rate (8.75% as of October 31, 1995).
Interest expense amounted to $342,221 in 1995, $281,361 in 1994, and
$287,091 in 1993. At October 31, 1995 and 1994 the balance due to the
affiliate was $4,032,527 and $4,048,307, respectively.
Through January 31, 1995, the General Partners have deferred receipt
of an aggregate amount of $2,467,674 of distributions to which they are
entitled, including distributions of $38,658, $154,633 and $154,633 for
the years ended October 31, 1995, 1994 and 1993, respectively; amounts
deferred were charged against partners' capital and recorded as
liabilities to the General Partner. Beginning with the February 28,
1995 distribution, the General Partners began to receive their
distributions currently.
9. Litigation
On December 27, 1995, a class action lawsuit naming various public real
estate partnerships sponsored by Dean Witter Realty Inc. ("Realty")
(including the Partnership and its Managing General Partner and
Associate General Partner), Realty, Dean Witter Reynolds Inc. and
others as defendants was filed in Superior Court in California. The
complaint alleges fraud, negligent misrepresentation, intentional and
negligent breach of fiduciary duty, unjust enrichment and related
claims and seeks compensatory and punitive damages in unspecified
amounts and injunctive and other equitable relief. The defendants have
removed the case to the United States District Court for the Southern
District of California. The defendants have not yet responded to the
complaint. The defendants intend to vigorously defend the action.
It is impossible to predict what financial exposure the Partnership may
have as a result of this litigation
10. Subsequent Event
On November 28, 1995, the Partnership paid a cash distribution of $5.00
per Unit to Limited Partners. The distribution was $515,444 with
$463,900 distributed to the Limited Partners and $51,544 distributed
to the General Partners. <PAGE>
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 is a limited partnership which has no
directors or officers.
The directors and executive officers of the Managing
General Partner are as follows:
<TABLE>
<S> <S>
Position with the
Name Managing General Partner
William B. Smith Chairman of the Board of Directors
E. Davisson Hardman, Jr. President and Director
Lawrence Volpe Controller, Assistant Secretary and
Director
Ronald T. Carman Secretary and Director
</TABLE>
All of the directors have been elected to serve until the next
annual meeting of the shareholder of the Managing General Partner or
until their successors are elected and qualify. Each of the executive
officers has been elected to serve until his successor is elected and
qualifies.
William B. Smith, age 52, is a Managing Director of Dean Witter
Realty Inc. and has been with Dean Witter Realty Inc. since April 1982.
He is executive Vice President of Dean Witter Reynolds, Inc.
E. Davisson Hardman, Jr., age 46, is a Managing Director of Dean
Witter Realty Inc. and has been with Dean Witter Realty Inc. since
April 1982.
Lawrence Volpe, age 48, is a Director and the Controller of Dean
Witter Realty Inc. He is a Senior Vice President and Controller of Dean
Witter Reynolds Inc., which he joined in 1983.
Ronald T. Carman, age 44, is a Director and the Secretary of Dean
Witter Realty, Inc. He is a Senior Vice President and Associate
General Counsel of Dean Witter Discover & Co. and Dean Witter Reynolds
Inc., which he joined in 1984.
There is no family relationship among any of the foregoing
persons.
ITEM 11. EXECUTIVE COMPENSATION.
The General Partners are entitled to receive cash distributions,
when and as cash distributions are made to the Limited Partners, and
a share of taxable income or tax loss. Descriptions of such
distributions and allocations are in Item 5 above. The General
Partners were entitled to receive cash distributions of $38,658,
$154,633 and $154,633 for the years ended October 31, 1995, 1994 and
1993, respectively, which they agreed to defer. At October 31, 1995,
the General Partners have deferred receipt of a total of $2,467,674 of
such distributions. The General Partners no longer defer their share
of cash distributions beginning with the distribution made in February
1995.
The General Partners and their affiliates were paid certain fees
and reimbursed for certain expenses. Information concerning such fees
and reimbursements is contained in Note 8 to the Consolidated Financial
Statements in Item 8 above.
The directors and officers of the Partnership's Managing General
Partner received no remuneration from the Partnership.
<TABLE>
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT.
(a) No person is known to the Partnership to be the beneficial
owner of more than five percent of the Units.
(b) The directors and executive officers and directors of the
Managing General Partner own the following Units as of January 1, 1996:
<CAPTION>
(1) (2) (3)
Amount and
Title of Name of Nature of
Class Beneficial Owner Beneficial Ownership
<S> <S> <S>
Limited All directors and executive *
Partnership officers of Managing General
Interests Partner, as a group
*Own, by virtue of their ownership of Limited Partnership interests in the
Associate General Partner, less than 1% of the Units of the Partnership.
</TABLE>
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
As a result of their being partners of a limited partnership
which is the limited partner of the Associate General Partner, certain
current and former executive officers and directors of the Managing
General Partner also own indirect general partnership interests in the
Partnership. The Partnership Agreement of the Partnership provides
that cash distributions and allocations of income and loss to the
General Partners be distributed or allocated 50% to the Managing
General Partner and 50% to the Associate General Partner. The General
Partners' share of cash distributions and income or loss is described
in Item 5 above.
All of the outstanding shares of common stock of the Managing
General Partner are owned by Realty, a Delaware corporation which is
a wholly-owned subsidiary of Dean Witter, Discover & Co. The general
partner of the Associate General Partner is Dean Witter Realty Income
Associates I Inc., which is a wholly-owned subsidiary of Realty. The
limited partner of the Associate General Partner is LSA 84 L.P., a
Delaware limited partnership. Realty and certain current and former
executive officers and directors of Realty are partners of LSA 84 L.P.
Additional information with respect to the directors and executive
officers and compensation of the Managing General Partner and
affiliates is contained in Items 10 and 11 above.
The General Partners and their affiliates were paid certain fees
and reimbursed for certain expenses. Information concerning such fees
and reimbursements is contained in Note 8 to the Consolidated Financial
Statements in Item 8 above. The Partnership believes that the payment
of fees and the reimbursement of expenses to the General Partners and
their affiliates are on terms as favorable as would be obtained from
unrelated third parties.
<PAGE>
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM
8-K.
(a) The following documents are filed as part of this Annual Report:
1. Financial Statements (see Index to Financial Statements
filed as part of Item 8 of this Annual Report).
2. Financial Statement Schedules (see Index to Financial
Statements filed as part of Item 8 of this Annual
Report).
3. Exhibits
(a) Amended and Restated Agreement of Limited Partnership dated
as of August 15, 1983 set forth in Exhibit A to the
Prospectus included in Registration Statement Number 286041
is incorporated herein by reference.
(b) Certificate of Limited Partnership
(4)(a) Amended and Restated Agreement of Limited Partnership dated
as of August 15, 1983 set forth in Exhibit A to the
Prospectus included in Registration Statement Number 2-
86041 is incorporated herein by reference.
(4)(b) Certificate of Limited Partnership
(9) Not applicable.
(10) Purchase and Sale Agreements for properties purchased were
filed as Exhibits to Form 8-K on April 26, 1984, October
17, 1984, October 26, 1984, October 31, 1984, December 20,
1984, July 15, 1985 and October 29, 1985 and are
incorporated herein by reference.
(11) Not applicable.
(12) Not applicable.
(13) Not applicable.
(18) Not applicable.
(19) Not applicable.
(21) Subsidiary: 1718 Connecticut, Ltd., a District of Columbia
limited partnership.
(23) Not applicable.
(24) Not applicable.
(25) Not applicable.
(27) Financial Data Schedule.
(28) Not applicable.
(99) Not applicable.
(b) No Forms 8-K were filed by the Partnership during the last
quarter of the period covered by this report.
(c) See Paragraph (a)(3) above.
(d) See Paragraph (a)(2) above.
<PAGE>
<TABLE>
SCHEDULE III
<CAPTION>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
Real Estate and Accumulated Depreciation
October 31, 1995
Initial Cost to Partnership (A)
Cost
Capitalized
Building and Subsequent
Description Land Improvements Total Acquisition
<S> <C> <C> <C> <C>
Office/R&D
Building
Westwood, MA $ 1,750,000 $6,780,006 $8,530,006 $2,458,039
Office Building
Washington, DC 1,186,400 7,402,062 8,588,462 666,439
Shopping Center
Altamonte
Springs, FL 2,300,000 7,626,517 9,926,517 870,005
Office Building
Los Angeles, CA 2,630,000 10,919,123 13,549,123 726,280
Office Buildings
Arlington
Heights, IL 2,280,000 7,860,616 10,140,616 1,812,596
Office Buildings
Charlotte, NC 1,934,000 17,186,456 19,120,456 3,229,796
$12,080,400 $57,774,780 $69,855,180 $9,763,155
</TABLE>
<TABLE>
<CAPTION>
Gross Amount at which
Carried at End of Period (B)
Losses on
Impairment of Buildings &
Description Real Estate Land Improvements Total
<S> <C> <C> <C> <C>
Office/R&D
Building
Westwood, MA $ - $ 1,750,000 $9,238,045 $10,988,045
Office Building
Washington, DC - 1,186,400 8,068,501 9,254,901
Shopping Center
Altamonte
Springs, FL - 2,450,000 8,346,522 10,796,522
Office Building
Los Angeles, CA (6,129,699) 2,630,000 5,515,704 8,145,704
Office Buildings
Arlington
Heights, IL (4,707,365) 2,280,000 4,965,847 7,245,847
Office Buildings
Charlotte, NC - 1,934,000 20,416,252 22,350,252
$(10,837,064) $12,230,400 $56,550,871 $68,781,271
</TABLE>
<TABLE>
<CAPTION>
Life on which
Depreciation
in Latest Income
Accumulated Date of Date Statements is
Description Depreciation Construction Acquired Computed
<S> <C> <C> <C> <C>
Office/R&D
Building
Westwood, MA $2,657,144 1983-1986 April 1984 5-40 years
Office Building
Washington, DC 3,082,833 1982 October 1984 5-40 years
Shopping Center
Altamonte
Springs, FL 2,365,221 1981-1985 October 1984 5-40 years
Office Building
Los Angeles, Ca 4,192,571 1984 October 1984 5-40 years
Office Buildings
Arlington
Heights, IL 3,942,760 1984 December 1984 5-40 years
Office Buildings
Charlotte, NC 7,849,032 1983-1985 July 1985 5-40 years
$24,089,561
</TABLE>
<TABLE>
Notes:
(A) The initial cost includes the purchase price paid by the Partnership and acquisition
fees and expenses. No carrying costs have been capitalized subsequent to acquisition.
There is no difference between cost for financial reporting purposes and federal income
tax purposes.
<CAPTION>
(B) Reconciliation of real estate owned
at October 31: 1995 1994 1993
<S> <C> <C> <C>
Balance at beginning of period $68,060,915 $78,205,759 $77,479,180
Additions during period:
Improvements 720,356 692,220 726,579
Losses on impairments of
real estate - (10,837,064) -
Balance at end of period $68,781,271 $68,060,915 $78,205,759
(C) Reconciliation of accumulated depreciation:
Balance at beginning of period $21,555,012 $18,605,656 $15,782,880
Depreciation expense 2,534,549 2,949,356 2,822,776
Balance end of period $24,089,561 $21,555,012 $18,605,656
/TABLE
<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.
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
By: Dean Witter Realty Income Properties I Inc.
Managing General Partner
By: /s/E. Davisson Hardman, Jr. Date: January 29, 1996
E. Davisson Hardman, Jr.
President
By: /s/Lawrence Volpe Date: January 29, 1996
Lawrence Volpe
Controller
(Principal Financial and Accounting Officer)
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 and on the dates indicated.
DEAN WITTER REALTY INCOME PROPERTIES I INC.
Managing General Partner
/s/William B. Smith Date: January 29, 1996
William B. Smith
Chairman of the Board of Directors
/s/E. Davisson Hardman, Jr. Date: January 29, 1996
E. Davisson Hardman, Jr.
Director
/s/Lawrence Volpe Date: January 29, 1996
Lawrence Volpe
Director
/s/Ronald T. Carman Date: January 29, 1996
Ronald T. Carman
Director
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Registrant is a limited partnership which invests in real estate and real
estate joint ventures. In accordance with industry practice, its balance
sheet is unclassified. For full information, refer to the accompanying
audited financial statements.
</LEGEND>
<CIK> 0000726315
<NAME> DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-END> OCT-31-1995
<CASH> 3,572,041
<SECURITIES> 0
<RECEIVABLES> 1,429,535
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 58,295,735<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 50,777,118<F2>
<TOTAL-LIABILITY-AND-EQUITY> 58,295,735<F3>
<SALES> 0
<TOTAL-REVENUES> 8,000,566<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 6,123,208
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 342,221
<INCOME-PRETAX> 1,535,137
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,535,137
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,535,137
<EPS-PRIMARY> 14.89<F5>
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net investments
in real estate of $44,691,710, investment in joint venture of $8,341,537 and
net deferred expenses of $260,912.
<F2>Represents partners' capital.
<F3>Liabilities include accounts payable and accrued liabilities of
$808,003, and other liabilities of $6,710,614.
<F4>Total revenue includes rent of $7,110,106, equity in earnings of joint
venture of $474,263, and interest and other revenue of $416,197.
<F5>Represents net income per Unit of limited partnership interest.
</FN>
</TABLE>
