UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-K
Annual Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1995. Commission file number 0-13426
GRIFFIN REAL ESTATE FUND-IV, A LIMITED PARTNERSHIP
Minnesota 41-1470203
3800 West 80th Street - Suite 750
Minneapolis, Minnesota 55431
Registrant's telephone number (612) 896-3800
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
------------------- ------------------------
None None
Securities registered pursuant to Section 12(g) of the act: $13,220,000
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 (229.405 of this chapter) is not contained herein, and will
not be contained to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this form 10-K. [ ]
Forms 8-K dated October 6, 1989, October 1, 1991 with an amendment dated October
16, 1991, April 13, 1992 with an amendment dated December 31, 1992 and May 12,
1992 with amends dated October 15, 1992 and December 31, 1992 are incorporated
by reference in this report.
GRIFFIN REAL ESTATE FUND-IV, A LIMITED PARTNERSHIP
TABLE OF CONTENTS
PAGE
PART I
Item 1 Business............................................... 1
Item 2 Properties............................................. 1
Item 3 Legal Proceedings...................................... 1-2
Item 4 Submission of Matters to a Vote
of Limited Partners.................................... 2
PART II
Item 5 Market for the Partnership's Limited Partnership
Interests and Related Limited Partner Matters.......... 2
Item 6 Selected Financial Data................................ 2-3
Item 7 Management's Discussion and Analysis of
Financial Condition and Results of Operations.......... 3-5
Item 8 Financial Statements and Supplementary Data............ 5
Item 9 Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure.................... 5
PART III
Item 10 The General Partner of the Partnership................. 6-8
Item 11 Management Remuneration and Transactions............... 8
Item 12 Limited Partnership Ownership of Certain
Beneficial Owners and Management....................... 9
Item 13 Certain Relationships and Related
Transactions........................................... 9
PART IV
Item 14 Exhibits, Financial Statement Schedules
and Reports on Form 8-K................................ 9
SIGNATURES............................................................... 10
GRIFFIN REAL ESTATE FUND-IV, A LIMITED PARTNERSHIP
PART I
Item 1. Business
The registrant, Griffin Real Estate Fund-IV, A Limited Partnership (the
"Partnership"), was organized on March 13, 1984 under the laws of the State of
Minnesota. The Partnership was formed by the general partner, Griffin
Associates-IV, a Minnesota limited partnership, to acquire existing,
income-producing real properties for rental purposes. On December 23, 1983 the
Partnership commenced an offering of $15,000,000 pursuant to a Registration
Statement on Form S-11 under the Securities Act of 1933. The offering terminated
December 22, 1984 upon the acceptance of 13,220 units ($13,220,000).
The Partnership is engaged solely in the business of real estate
investment. A presentation of information about industry segments is not
applicable and would not be material to an understanding of the Partnership's
business taken as a whole.
As of December 31, 1995 the Partnership has made the real property
investments set forth in the following table:
<TABLE>
<CAPTION>
Name, type of property Date of Type of
and location (a) Size Purchase Ownership (b)
------------ ---- -------- -------------
<S> <C> <C> <C>
1. Presidential Estates Apts. 244 units & 2 2/10/84 Mortgage Note
Indianapolis, Indiana office buildings
2. Brooklane Apartments 278 units 12/27/84 Mortgage Note
Brown Deer, Wisconsin
3. Ravenwood Apts. (c) 192 units 4/30/85 Mortgage Note
Cincinnati, Ohio
</TABLE>
(a) Reference is made to Schedule III of this annual report.
(b) Reference is made to Note 3 of Notes to Financial Statements filed
with this annual report for the current outstanding principal balances
and a description of the long-term indebtedness secured by the
Partnership's real property investments;
(c) The Partnership has a 30% interest in this property. The other 70%
interest is owned by Griffin Real Estate Fund-V, A Limited Partnership.
Reference is made to Note 9 to the financial statements.
The Partnership's real property investments are subject to competition
from similar types of properties in the vicinities in which they are located.
The Terms of Transactions between the Partnership and affiliates of the
General Partner are described in Item 11 to which reference is hereby made.
Item 2. Properties
The Partnership owns the real properties referred to in Item 1 to which
reference is hereby made.
Item 3. Legal Proceedings
On September 20, 1995 Everest Investors, LLC ("Everest") filed a
lawsuit against Griffin Associates IV ("General Partner"), the general partner
of Griffin Real Estate Fund IV, A Limited Partnership ("Partnership"). The
lawsuit alleged that the General Partner had wrongfully denied Everest access to
the books and records of the Partnership. The court granted, in part, Everest's
request for access to the books and records and ordered the General Partner to
provide Everest access to these records. The General Partner complied with this
court order. Everest continued to seek access to additional books and records of
the Partnership beyond the scope of the court order. The General Partner
vigorously defended the Partnership's right to keep its proprietary records from
being reviewed by Everest, who is not a limited partner of the Partnership. The
General Partner filed for a dismissal of the matter. The court heard arguments
on September 29, 1995, October 26, 1995 and November 17, 1995. On November 27,
1995 the court dismissed Everest's lawsuit. Everest appealed the dismissal on
March 12, 1996 and a decision is pending.
Item 4. Submission of Matters to a Vote of Limited Partners
There were no matters submitted to a vote of the Limited Partners.
PART II
Item 5. Market for the Partnership's Limited Partnership Interests and
Related Limited Partner Matters
There are approximately 1,436 holders of record of units of the
Partnership. There is no public market for units and it is not anticipated that
a public market for units will develop. The General Partner will not redeem or
repurchase units except upon death of the original limited partner.
Reference is made to Item 6 in this annual report for a discussion of
cash distributions made to the Limited Partners.
Item 6. Selected Financial Data
Griffin Real Estate Fund-IV, A Limited
Partnership For the Years Ended December 31,
1995, 1994, 1993, 1992, and 1991
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Total revenues $ 3,600,899 $ 3,394,914 $ 3,244,941 $ 3,836,340 $ 5,006,786
Loss before extra-
ordinary item (37,252) (103,729) (768,243) (816,561) (1,219,996)
Loss before extra-
ordinary item per
limited partner
unit (c) (3) (8) (57) (61) (91)
Extraordinary Items:
Gain on foreclosure
of property -- -- -- 171,728 --
Loss on extinguishment
of debt -- -- (78,215) -- --
Extraordinary items:
Gain on foreclosure of
property per limited
partner unit (c) -- -- -- 13 --
Loss on extinguishment
of debt per limited
partner unit (c) -- (6) -- --
Net loss (37,252) (103,729) (846,458) (644,833) (1,219,996)
Net loss per limited
partner unit (c) (3) (8) (63) (48) (91)
Total assets $ 10,885,194 $ 11,049,378 $ 11,508,304 $ 11,359,546 $ 19,800,053
Mortgages and
contracts for deed 12,363,382 12,453,362 12,558,350 11,871,516 19,695,090
Cash distributions
per limited
partner unit (b)(c) -- -- -- -- --
</TABLE>
(a) The above selected financial data should be read in conjunction with the
financial statements and the related notes appearing in Exhibit I in this annual
report.
(b) Cash distributions of $176 per limited partnership unit have been made to
the Limited Partners since the inception of the Partnership. These distributions
have not resulted in taxable income to such Limited Partners and have therefore
represented a return of capital. Each Partner's taxable income (or loss) from
the Partnership in each year is equal to his allocable share of the taxable
income (loss) of the Partnership, without regard to cash generated or
distributed by the Partnership. The Partnership's Taxable Income and Tax Losses
(including net income and losses from operations but not interest income earned
on cash reserves and investments) as well as Profit or Loss on the Sale of
Properties will constitute passive activity income and losses under the 1986 Act
with respect to those taxpayers to which the passive activity rules apply.
(c) The net loss and cash distribution per limited partnership unit are based
upon the weighted average number of limited partnership units outstanding during
the period.
(d) The 1992 figures reflect the foreclosures of Mountain Creek Apartments and
Kristopher Woods Apartments.
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
RESULTS OF OPERATIONS
Summary of Operations - 1995 Compared to 1994
Rental rates of the property portfolio increased an average of 4.4%.
Individually, rental rates increased by the smallest amount of 2.5% at Ravenwood
Apartments and the largest amount of 5.5% at Presidential Estates Apartments.
Average physical occupancy improved at two of the three properties with
the physical occupancy at Ravenwood Apartments declining. Occupancy rates
averaged increases from 92.1% to 93.2%. Rent loss due to vacancy declined by
approximately $26,700. As a result of increased rental rates and improved
occupancy, plus the increase in interest and other income, revenue increased
approximately $206,000.
Interest expense increased at all three properties with a total
increase of approximately $187,300. The terms of all three mortgage notes
includes an adjustable rate of interest. Rates that were at 7.1% at the
beginning of 1994 rose throughout 1994 and 1995 to a high of 9.5% by the end of
1995.
Excluding the interest expense and the depreciation and amortization
expenses which are non-cash expenditures, total other operating expenses
declined by approximately $60,700.
As a result of improved revenue, and a smaller increase in expenses,
Net Loss was reduced by approximately $66,500.
During the year, the Partnership invested approximately $199,300 in
physical improvements to the properties. The majority of these expenditures
related to the completion of the exterior renovations and landscaping of
Presidential Estates Apartments.
As a result of the overall performance of the Partnership's properties
in 1995 the Partnership added approximately $326,100 to its cash reserve
balance.
Summary of Operations - 1994 Compared to 1993
During 1994, the Partnership's property portfolio operations improved.
Rental rates increased an average on 2.2%. Rent loss due to vacancy declined by
approximately $78,800. Average occupancy increased from 89.9% to 92.1%. As a
result of increased rental rates and improved occupancy, total revenue increased
approximately $150,000.
Interest expense decreased by approximately $667,100. This was due to a
reduction in the interest rates which resulted from the refinancing of the
mortgage debt of the entire portfolio which took place on December 10, 1993.
Interest rates which were at 12% during 1993 were reduced to 7.1% during the
early part of 1994. However, the terms of the financing included an adjustable
rate of interest feature which resulted in an increase in interest rates in 1994
as short term interest rates increased, ending the year at 9.1%.
The lender required, as a condition of the loans, that certain repairs
and improvements be made to the properties. Many of these repairs are reflected
in the increased repair and maintenance expense.
As a result of the increase in revenue, but more significantly the
reduction in interest expense and the resulting decrease in total operating
expenses, the Net Loss in 1994 was reduced by approximately $664,500 (excluding
the extraordinary loss item in 1993).
The improvements required by the lender as a condition of the loan
resulted in the Partnership investing approximately $500,400 in physical
improvements to the properties. The majority of these expenditures were incurred
for a complete exterior renovation of Presidential Estates Apartments. These
renovations included roof and siding replacements.
LIQUIDITY
The Partnership has approximately $423,600 of cash reserves on hand at
December 31, 1995. This should provide the Partnership with ample liquidity with
which to operate the Partnership and provide funds for capital improvements to
the properties in the near term and into the future. The Partnership has
committed approximately $150,000 to capital improvements at Brooklane Apartments
and approximately $50,000 at Presidential Estates Apartments.
Although there can be no assurance of continuing cash flow from
property operations, if anticipated cash flow is realized, the Partnership
intends on resuming distributions in 1996 at an annual rate of $20 or 2% per
partnership unit.
Although there can be no assurance that a sale will ultimately be
completed, the Partnership intends on selling its share of Ravenwood Apartments
during 1996. Upon a successful completion of a sale, the proceeds will be
distributed. The Partnership has no other plans for property sales in the near
term.
OCCUPANCY TABLE
Approximate occupancy levels of the Partnership's investment property
by quarter.
<TABLE>
<CAPTION>
Brooklane Presidential Ravenwood Kristopher Mountain Creek
Apts. Estates Apts. Apts. Woods Apts. Apts.
Brown Deer Indianapolis Cincinnati Clarkston Stone Mountain
Wisconsin Indiana Ohio Georgia Georgia
<S> <C> <C> <C> <C> <C>
3/31/95 95% 89% 86% * *
6/30/95 99% 95% 91% * *
9/30/95 98% 93% 91% * *
12/31/95 96% 90% 86% * *
3/31/94 93% 83% 91% * *
6/30/94 99% 85% 92% * *
9/30/94 96% 94% 90% * *
12/31/94 97% 91% 88% * *
3/31/93 89% 91% 92% * *
6/30/93 99% 93% 96% * *
9/30/93 99% 90% 94% * *
12/31/93 96% 87% 90% * *
3/31/92 93% 93% 92% 88% 82%
6/30/92 92% 96% 91% * *
9/30/92 91% 93% 96% * *
12/31/92 83% 90% 96% * *
3/31/91 96% 96% 96% 88% 75%
6/30/91 95% 97% 97% 86% 76%
9/30/91 96% 92% 97% 89% 75%
12/31/91 93% 91% 93% 88% 82%
</TABLE>
* Indicates the Partnership did not own the property at the end of the quarter.
Item 8. Financial Statements and Supplementary Data
The Table of Contents to Financial Statements, Financial Statements and
Supplementary Data listed in Item 14 are referenced herein as included in the
exhibits attached to this report and are incorporated herein by reference.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
There have been no changes in independent auditors and as of the date
of the filing, there were no material disagreements with the current independent
auditors (Larson, Allen, Weishair & Co.,LLP) regarding any of the following:
1) Accounting principles or practices
2) Extent and quality of financial statement disclosure
3) Auditing scope or procedures
PART III
Item 10. The General Partner of the Partnership
The General Partner of the Partnership is Griffin Associates-IV, A
Limited Partnership, a Minnesota limited partnership formed in August of 1983 by
certain directors and officers of Griffin Companies for the sole purpose of
acting as General Partner of the Partnership. As General Partner, Griffin
Associates-IV manages and controls the affairs of the Partnership and has
general responsibility and authority in all matters affecting its business.
Griffin Companies, A Minnesota corporation organized in 1969, and its
affiliates are engaged in real estate brokerage, real estate investment
counseling, and management of commercial and residential real estate. Griffin
Companies and its Affiliates have organized and served as general partners in
thirty-two privately placed partnerships and six publicly offered partnerships,
which were formed for the purpose of real estate investment.
The General Partner and its Affiliates provide executive, supervisory
and certain administrative services for the Partnership's operations and the
General Partner is responsible for determining whether, when and on what terms
properties should be sold or refinanced. In addition, the books and records of
the Partnership are maintained by Griffin Companies, and are subject to audit by
independent certified public accountants. The partners of the General Partner
intend to devote only as much of their time to the business of the Partnership
as they determine to be reasonably required. Limited Partners have no right to
participate in the management of the Partnership.
Effective December 31, 1994, James R. Wadsworth, one of the partners of
the General Partner, withdrew as a partner.
The identity and business experience of each of the partners of the
General Partner is as follows:
Larry D. Fransen (age 55) founded Griffin Companies in 1969. He is a
Director and senior officer of each of its operating entities, in addition to
serving as Chairman.
Since 1969, he has acted as general partner in many partnerships
investing in apartments, office buildings, warehouses, land and motels.
Acting on behalf of Griffin Companies' clients, Mr. Fransen has
negotiated the acquisition and disposition of more than one billion dollars in
investment real estate properties nationwide.
He is a member of numerous professional organizations, including the
Greater Minneapolis Area Board of Realtors, the Minnesota Association of
Realtors, the National Association of Realtors (NAR), Minnesota Multi Housing
Association (MHA), National MultiHousing Council (NMHC), the National Apartment
Association (NAA), Commercial and Investment Institute, National Association of
Real Estate Investment Trusts (NAREIT), and the Pension Real Estate Association
(PREA).
Mr. Fransen holds the CCIM (Certified Commercial Investment Member)
designation of the Commercial Investment Institute, as well as the SRS
(Specialist in Real Estate Securities) designation. For 13 years, he was an
instructor for the Commercial Investment Institute and served as the group's
national president in 1983. He has been awarded the Omega Tau Rho Medal of
Service for his years of service to the National Association of Realtors.
Robert S. Dunbar (age 56) is Chief Executive Officer of Griffin
Companies.
Following several years with Control Data Corporation where he held
various administrative and management positions, he was named Executive Vice
President of the U.S. Jaycees in 1970, with responsibility for planning,
budgeting and administration of the national organization. In 1972, he joined
Ed. Phillips & Sons Company in Minneapolis, Minnesota as a sales manager. In
1975 he was elected President of Westland Capital Corporation, a Minneapolis
venture capital firm, where he was responsible for analyzing various companies
for potential investment opportunities. He joined Griffin Companies in 1977.
Mr. Dunbar is a member of the Institute of Real Estate Management
(IREM) and the Minnesota Multi Housing Association (MHA). He holds the Certified
Apartment Manager (CAM) designation of the National Apartment Association and is
a Certified Property Manager (CPM) as designated by the National Association of
Realtors. Mr. Dunbar also holds a Minnesota Real Estate Broker's License and has
completed the necessary course work for their prestigious Certified Commercial
Investment Member (CCIM) designation conferred by the Commercial Investment
Institute. He is a member of the National MultiHousing Council and The Executive
Committee (T.E.C.). He also serves on the Board of Trustees of Northwestern
College.
Robert E. Christenson (age 59) served as a Senior Vice President of
Griffin Companies from April 1982 to March 1985. Since 1970 Mr. Christenson has
been active in the brokerage of commercial investment real estate at two
regional mortgage banking and investment real estate firms based in Minneapolis,
Minnesota.
Mr. Christenson holds the professional designation CCIM and is past
President of the Upper Midwest CCIM Chapter. He is a member of the Greater
Minneapolis Area Board of Realtors, the Minnesota Association of Realtors and
the National Association of Realtors where he currently serves on the Commercial
Investment Council. Mr. Christenson received the National Service Medal from the
National Association of Realtors in September 1980, and was awarded the William
J. Campbell Trophy for the National Commercial Transaction of the Year for 1982
by the Realtors National Marketing Institute.
Mr. Christenson is a member of the Real Estate Securities Syndication
Institute and serves as a member of its National Syndication Forum. He is a
member of the International Association for Financial Planning and is a member
and Director of the Twin Cities Association for Financial Planning.
Thomas A. Robeson (age 64) served as a Senior Vice President of Griffin
Companies, which he joined in April 1980, until his departure on February 29,
1988.
Mr. Robeson's previous business experience includes service in the
Investment Division of a national insurance company, from 1955 to 1957, and from
1957 to 1972, with IBM Corporation, where he held various sales and management
positions.
Mr. Robeson entered the real estate field in 1972 when he joined a real
estate firm in St. Paul, Minnesota. His responsibilities included brokerage,
management and syndication of various types of real estate. In 1975, Mr. Robeson
joined a Minneapolis investment company where he was involved in the brokerage
of a wide range of commercial, industrial, and investment real estate. In 1978,
he was promoted to Vice President and Manager of the Commercial-Investment
Division of that company. He has experience in the acquisition and disposition
of shopping centers, apartment buildings, commercial office buildings, motels,
net leased industrial warehouse and manufacturing facilities, and industrial,
commercial and residential unimproved property.
Mr. Robeson holds the professional designation CCIM (Certified
Commercial Investment Member of the Realtors National Marketing Institute). He
is a member of the International Association for Financial Planning and of
several real estate organizations, including the National Association of
Industrial and Office Parks, the Upper Midwest Chapter of the Realtors National
Marketing Institute, the Greater Minneapolis Area Board of Realtors, the
Minnesota Association of Realtors and the National Association of Realtors.
Messrs. Fransen and Dunbar together own 100% of the issued and
outstanding shares of common stock of Griffin Companies. The partners of the
General Partner represent and warrant that they have a collective personal net
worth on an unaudited cost basis and on an unaudited estimated current value
basis (measured as total assets at estimated current value less all liabilities)
in excess of $1,500,000. The assets of the partners of the General Partner are
largely invested in interests in real property and in Griffin Companies.
Therefore, it may be difficult to precisely value such assets or to liquidate
such assets expeditiously or on terms favorable to the seller.
Item 11. Management Remuneration and Transactions
Partners of the General Partner receive no current or proposed direct
remuneration in such capacity. The Partnership is required to pay a management
fee to Griffin Companies and the General Partner is entitled to receive a share
of cash distributions, when and as cash distributions are made to the Limited
Partners, and a share of profits or losses as described below:
* Profits, losses, other than from refinancing or from the sale
of Partnership properties, are allocated 99% to the limited
partners and 1% to the general partner.
* Cash flow distributions, other than from refinancing or from
the sale of Partnership properties, are allocated 95% to the
limited partners and 5% to the general partner.
* Net proceeds from refinancing or from the sale of property
other than upon liquidation, less any necessary liability
reserves or debt payments, will be distributed in the
following order subject to the general partner receiving at
least 1% of the distributions:
** First, to the limited partners to the extent that
prior distributions are less than the original
capital contribution plus 6% per annum (as defined in
the Partnership Agreement);
** Second, any unpaid real estate commissions due to the
general partner on the resale of the Partnership
properties;
** Third, any remaining balance, 85% to the limited
partners and 15% to the general partner.
The Partnership is entitled to engage in various transactions involving
affiliates of the General Partner of the Partnership.
Griffin Companies ("Griffin"), an affiliate of the General Partner, may
be reimbursed for direct expenses relating to the administration of the
Partnership and operation of the Partnership real property investments. Griffin
received approximately $ 11,781, $11,097 and $21,254 in 1995, 1994, and 1993
respectively, for these expenses.
Reference is made to Note 6 of Notes to Financial Statements appearing
elsewhere in this annual report for a description of related party transactions.
Item 12. Limited Partnership Ownership of Certain Beneficial Owners and
Management
No person or any "group" is known by the Partnership to own
beneficially more than 5% of the outstanding units of the Partnership.
The individual general partners of the General Partner as a group have
the following interest in the Partnership:
Amount and Nature Percent of Class
of Beneficial Outstanding at
Title of Class Ownership December 31, 1995
Limited Partnership Units 100 units purchased at .8%
$1,000 per unit
No partner of the General Partner possesses a right to acquire
beneficial ownership of interest of the Partnership. There exists no
arrangement, known to the Partnership, the operation of which may at subsequent
date result in a change in control of the Partnership.
Item 13. Certain Relationships and Related Transactions
The partners of Griffin Associates-IV, the general partner of the
Partnership, are also owners and employees of Griffin Companies, a Minnesota
corporation. Accounts payable - affiliates consists of unpaid management fees to
and advances from Griffin Companies The following is a summary of approximate
fees incurred for the years ended December 31:
1995 1994 1993
---- ---- ----
Property management fees $ 192,305 $ 183,022 $ 184,543
Major improvement
supervisory fees 33,296 70,414 15,846
On April 26, 1985, Griffin Real Estate Fund-IV entered into a joint
venture with Griffin Real Estate Fund-V for the purpose of purchasing Ravenwood
Apartments, with Griffin Real Estate Fund-V designated as the managing partner.
Griffin Real Estate FundIV contributed $330,000 (30%) and Griffin Real Estate
Fund-V contributed $770,000 (70%) to the venture. All allocations of cash flow,
tax consequences, expenses, and future contributions are to be in the ratio of
30% to 70%, respectively. There are no remunerations between Griffin Real Estate
Fund-IV and Griffin Real Estate Fund-V in relation to the Ravenwood Joint
Venture.
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
The following documents are filed as part of this report:
Exhibit 13: Financial Statements and Schedules.
Exhibit 27: Financial Data Schedule.
An 8-K was filed on April 13, 1992 with an amendment dated December 31,
1992 in regards to the disposition of Kristopher Woods Apartments.
An 8-K was filed on May 12, 1992 with amendments dated October 15, 1992
and December 31, 1992 in regards to the disposition of Mountain Creek
Apartments.
No annual report or proxy material for the fiscal year 1995 has been
sent to the Partners of the Partnership. An annual report will be sent to the
Partners subsequent to this filing substantially similar to this form 10K.
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.
Dated: March 25, 1996 Griffin Real Estate Fund-IV,
A Limited Partnership
By: /s/ Larry Fransen
Larry Fransen
for the General Partner
Griffin Associates-IV,
A Limited Partnership
Pursuant to the requirements of the Securities and Exchange Act of 1934, this
Report has been signed below by the following person on behalf of the Registrant
and in the capacity and on the date indicated.
Dated: March 25, 1996 By: /s/ Larry Fransen
Larry Fransen
Managing General Partner
of the General Partner
Griffin Associates-IV
A Limited Partnership
EXHIBIT 13
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES
INCLUDED IN ANNUAL REPORT (FORM 10-K)
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
TABLE OF CONTENTS
Page
Independent Auditor's Report............................................ 1
Balance Sheets, December 31, 1995 and 1994.............................. 2
Statements of Operations for the Years Ended
December 31, 1995, 1994 and 1993........................................ 3
Statements of Cash Flows for the Years
Ended December 31, 1995, 1994 and 1993.................................. 4
Statements of Changes in Partners' Deficit
for the Years Ended December 31, 1995, 1994 and 1993.................... 5
Notes to Financial Statements........................................... 6-10
Financial Statement Schedules........................................... 11
III Real Estate and Accumulated Depreciation,
December 31, 1995......................................... 11
All schedules other than those indicated in the Table of Contents have
been omitted as the required information is inapplicable or the
information is presented in the financial statements or related notes.
INDEPENDENT AUDITOR'S REPORT
Griffin Real Estate Fund-IV,
A Limited Partnership
Minneapolis, Minnesota
We have audited the accompanying balance sheets of Griffin Real Estate Fund-IV,
A Limited Partnership, as of December 31, 1995 and 1994, and the related
statements of operations, changes in partners' deficit, and cash flows for each
of the years in the three-year period ended December 31, 1995. Our audits also
included the financial statement schedules listed in the table of contents at
Exhibit I. These financial statements and financial statement schedules are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statments are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Griffin Real Estate Fund-IV, A
Limited Partnership, as of December 31, 1995 and 1994, and the results of its
operations and its cash flows for each of the years in the three-year period
ended December 31, 1995 in conformity with generally accepted accounting
principles. Also, in our opinion, the financial statement schedules, when
considered in relation to the basic financial statements taken as a whole,
present fairly in all material respects the information set forth therein.
LARSON, ALLEN, WEISHAIR & CO., LLP
Minneapolis, Minnesota
March 11, 1996
1
<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
1995 1994
------------ ------------
ASSETS
Cash and cash equivalents $ 423,615 $ 97,469
Real estate tax, replacement and repair, and
insurance escrow deposits 515,751 586,246
Receivables and other assets 50,088 43,769
------------ ------------
Total 989,454 727,484
------------ ------------
PROPERTY AND EQUIPMENT:
Land 1,203,093 1,203,093
Buildings and improvements 14,417,914 14,224,243
Furniture and equipment 1,003,999 998,392
------------ ------------
Total 16,625,006 16,425,728
Less accumulated depreciation 7,035,942 6,449,249
------------ ------------
Property and equipment - net 9,589,064 9,976,479
------------ ------------
Deferred expenses (net of accumulated
amortization - 1995 $80,705;
1994, $41,966) 306,676 345,415
------------ ------------
TOTAL ASSETS $ 10,885,194 $ 11,049,378
============ ============
LIABILITIES AND PARTNERS' DEFICIT
LIABILITIES:
Accounts payable:
Affiliate $ 18,816 $ 18,037
Other 105,744 89,467
Security deposits 92,795 98,383
Accrued expenses:
Real estate taxes 456,450 451,762
Interest 97,619 84,060
Notes payable 40,421 107,088
Mortgage notes payable 12,363,382 12,453,362
------------ ------------
Total liabilities 13,175,227 13,302,159
------------ ------------
PARTNERS' DEFICIT:
General Partner (221,228) (220,855)
Limited Partners (2,068,805) (2,031,926)
------------ ------------
Total Partners' Deficit (2,290,033) (2,252,781)
------------ ------------
TOTAL LIABILITIES AND PARTNERS'
DEFICIT $ 10,885,194 $ 11,049,378
============ ============
See Notes to Financial Statements
-2-
<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
----------- ----------- -----------
<S> <C> <C> <C>
REVENUES:
Rent (less vacancies: 1995, $251,583;
1994, $278,236; 1993, $357,084) $ 3,440,993 $ 3,257,280 $ 3,102,313
Interest 25,407 11,040 13,630
Other 134,499 126,594 128,998
----------- ----------- -----------
Total revenues 3,600,899 3,394,914 3,244,941
----------- ----------- -----------
EXPENSES:
Interest and amortization
of debt discounts 1,160,354 973,102 1,640,220
Depreciation and amortization 625,432 612,525 571,404
Real estate taxes 426,059 455,828 461,852
Repairs and maintenance 322,587 394,775 276,268
Utilities 259,116 276,616 253,318
Salaries and employee benefits 412,491 382,719 366,446
Management fees:
Related parties 192,305 183,022 184,543
Administrative 111,913 117,830 121,868
Insurance 80,061 73,907 111,996
Bad debts 16,406 6,794 9,375
Other 31,427 21,525 15,894
----------- ----------- -----------
Total expenses 3,638,151 3,498,643 4,013,184
----------- ----------- -----------
LOSS BEFORE EXTRAORDINARY ITEM (37,252) (103,729) (768,243)
EXTRAORDINARY ITEM -
LOSS ON EXTINGUISHMENT OF DEBT -- -- (78,215)
----------- ----------- -----------
NET LOSS $ (37,252) $ (103,729) $ (846,458)
=========== =========== ===========
NET LOSS ALLOCATED
TO GENERAL PARTNER $ (373) $ (1,037) $ (8,465)
=========== =========== ===========
NET LOSS ALLOCATED
TO LIMITED PARTNERS $ (36,879) $ (102,692) $ (837,993)
=========== =========== ===========
PER UNIT:
LOSS BEFORE EXTRAORDINARY ITEM $ (3) $ (8) (57)
EXTRAORDINARY ITEM -- -- (6)
----------- ----------- -----------
NET LOSS $ (3) $ (8) $ (63)
=========== =========== ===========
</TABLE>
See Notes to Financial Statements
-3-
<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
------------ ------------ ------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (37,252) $ (103,729) $ (846,458)
Adjustments to reconcile net
loss to net cash
provided (used) by operating
activities:
Depreciation and amortization 625,432 612,525 571,404
Amortization and writeoff
of debt discount -- -- 221,668
Decrease (increase) in:
Receivables escrows and
other assets 64,176 364,644 (5,587)
Increase (decrease) in:
Accounts payable 17,056 (2,859) (54,320)
Security deposits (5,588) (6,746) (6,273)
Accrued expenses 18,247 76,293 (46,525)
------------ ------------ ------------
Net cash provided (used) by
operating activities 682,071 940,128 (166,091)
------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property
and equipment (199,278) (500,422) (126,505)
------------ ------------ ------------
Net cash used by
investing activities (199,278) (500,422) (126,505)
------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of finance fees -- -- (271,890)
Payments on mortgage notes (89,980) (104,988) (1,554)
Payments on notes payable (66,667) (308,412) --
Redemption of Partnership units -- (8,485) --
------------ ------------ ------------
Net cash used by financing
activities (156,647) (421,885) (273,444)
------------ ------------ ------------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 326,146 17,821 (566,040)
CASH AND CASH EQUIVALENTS
- BEGINNING OF YEAR 97,469 79,648 645,688
------------ ------------ ------------
CASH AND CASH EQUIVALENTS
- END OF YEAR $ 423,615 $ 97,469 $ 79,648
============ ============ ============
CASH PAID FOR INTEREST $ 1,146,795 $ 890,509 $ 1,708,828
============ ============ ============
SUMMARY OF NON-CASH TRANSACTIONS
Proceeds from refinancing of
mortgage notes $ -- $ -- $ 12,558,350
Proceeds from notes payable -- -- 415,500
Payoff of mortgage notes and
contract for deed -- -- (12,091,630)
Proceeds from mortgage notes
and notes payable used to
fund escrows and deferred
finance costs -- -- (882,220)
------------ ------------ ------------
Total $ -- $ -- $ --
============ ============ ============
</TABLE>
See Notes to Financial Statements
-4-
<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
STATEMENTS OF CHANGES IN PARTNERS' DEFICIT
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
GENERAL LIMITED
PARTNER'S PARTNERS'
DEFICIT DEFICIT TOTAL
----------- ----------- -----------
PARTNERS' DEFICIT
DECEMBER 31, 1992 $ (211,353) $(1,082,756) $(1,294,109)
NET LOSS (8,465) (837,993) (846,458)
----------- ----------- -----------
PARTNERS' DEFICIT
DECEMBER 31, 1993 (219,818) (1,920,749) (2,140,567)
NET LOSS (1,037) (102,692) (103,729)
REDEMPTION OF TEN UNITS -- (8,485) (8,485)
----------- ----------- -----------
PARTNERS' DEFICIT
DECEMBER 31, 1994 (220,855) (2,031,926) (2,252,781)
Net Loss (373) (36,879) (37,252)
----------- ----------- -----------
PARTNERS' DEFICIT
DECEMBER 31, 1995 $ (221,228) $(2,068,805) $(2,290,033)
=========== =========== ===========
See Notes to Financial Statements
-5-
<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995, 1994 AND 1993
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of the Partnership - Griffin Real Estate Fund-IV, A Limited
Partnership (the Partnership), was organized under the laws of the
State of Minnesota. The limited partnership offering terminated on
December 22, 1984, at which time 13,220 units had been sold at a value
of $1,000 per unit. At December 31, 1995, there are 13,220 limited
partnership units authorized and 13,200 limited partnership units
outstanding.
Sale of Property
The Partnership listed its share of Ravenwood Apartments for sale
during 1995.
Statements of Cash Flows - For the purpose of the statements of cash
flows, the Partnership considers all highly liquid debt instruments
with an original maturity of three months or less to be cash
equivalents. Cash and cash equivalents of $423,615 and $97,469 at
December 31, 1995 and 1994 respectively, consist of deposits in bank
and government money market portfolios and are recorded at cost which
approximates market value. The Partnership places its temporary cash
investments with high credit quality financial institutions. At times
such investments may be in excess of the FDIC insurance limit.
Use of Estimates
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 disclosures of contingent assets and liabilities at the
date of the financial statements. Estimates also affect the reported
amounts of revenue and expense during the reported period. Actual
results could differ from those estimates.
Financial Instruments
The carrying amounts for all financial instruments approximates fair
value. The carrying amounts for cash, receivables, accounts payable and
accrued liabilities, and loans payable approximate fair value because
of the short maturity of these instruments. The fair value of long-term
debt approximates the current rates at which the Partnership could
borrow funds with similar remaining maturities.
Properties and Depreciation - Properties are stated at cost including
capitalized acquisition fees and are depreciated using a straight-line
method over the estimated useful lives of the related assets
(buildings, 25 years; land improvements, 15 years; furnishings and
equipment, 5 years). For income tax purposes, the Partnership
depreciates the buildings over 15 to 19 years using the Accelerated
Cost Recovery System. Building improvements made subsequent to January
1, 1987 are depreciated over 27.5 years using the Modified Cost
Recovery System for tax purposes.
Mortgages and contracts for deed include contractual interest rates
which are below market for similar obligations and therefore have been
discounted to reflect prevailing market rates at the date of property
acquisitions. These discounts are amortized over the life of the
obligations using the interest method.
Leases - Apartment leases are generally renewable on a six month to one
year basis.
Offering Costs - Expenses incurred in connection with the registration
and offering of the partnership units, syndication costs, including
selling commissions and advertising, are recorded as a reduction of
Partners' Equity. Such costs are not deductible for income tax purposes
by the Partnership nor its partners.
-6-
<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995, 1994 AND 1993
Income Taxes - The financial statements of the Partnership do not
include a provision for income taxes as the income and losses of the
Partnership are allocated to the individual partners for inclusion in
their income tax returns.
Net Income (Loss) Per Limited Partnership Unit - The net income (loss)
per limited partnership unit is computed by dividing the net income
(loss) allocated to limited partners by the weighted average number of
limited partnership units outstanding during the year.
Recently Issued Accounting Standards
The Financial Accounting Standards Board ("FASB") issued Statement No.
121, Accounting for the Impairment of Long Lived Assets, which requires
the recognition of impairments on long lived assets in the Statements
of Operations. This statement is effective for years beginning after
December 15, 1995. This SFAS is not expected to have a material effect
on the Partnership.
2. ORGANIZATION
The Partnership was formed by the general partner, Griffin
Associates-IV, a Limited Partnership, to acquire existing,
income-producing real properties for rental purposes. Griffin
Associates-IV is not required to make any capital contributions to the
Partnership.
The Limited Partnership Agreement and Certificate of Limited
Partnership (Partnership Agreement) contains certain provisions, among
others, described as follows:
* The management and general responsibility of operating the
Partnership business shall be vested exclusively in the
general partner.
* Profits and losses, other than from refinancing or from the
sale of Partnership properties, are allocated 99% to the
limited partners and 1% to the general partner.
* Cash flow distributions, other than from refinancing or from
the sale of Partnership properties, are allocated 95% to the
limited partners and 5% to the general partner.
* Net proceeds from refinancing or from the sale of property
other than upon liquidation, less any necessary liability
reserves or debt payments, will be distributed in the
following order subject to the general partner receiving at
least 1% of the distributions:
** First, to the limited partners to the extent that
prior distributions are less than the original
capital contribution plus 6% per annum (as defined in
the Partnership Agreement);
** Second, any unpaid real estate commissions due to the
general partner on the resale of the Partnership
properties;
** Third, any remaining balance, 85% to the limited
partners and 15% to the general partner.
* The Partnership will terminate on December 31, 2024 or earlier
upon the sale of substantially all of the properties or the
occurrence of certain other events as stated in the
Partnership Agreement.
-7-
<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995, 1994 AND 1993
3. MORTGAGE NOTES PAYABLE
Mortgage notes payable consist of the following at December 31:
1995 1994
---- ----
Mortgage note (Presidential Estates
Apartments), monthly installments of
principal and interest (9.475% at
December 31, 1995) due January 2004. $ 4,917,157 $ 4,952,944
Mortgage note (Brooklane Apartments),
monthly installments of principal and
interest (9.475% at December 31, 1995)
due January 2004. 6,529,039 6,576,556
Mortgage note (Ravenwood Apartments),
monthly installments of principal and
interest (9.475% at December 31, 1995)
due January 2004. 917,186 923,862
----------- -----------
Total mortgage notes payable $12,363,382 $12,453,362
=========== ===========
All property is pledged as collateral to the mortgage notes payable.
Future principal maturities are as follows:
1996 $ 98,177
1997 108,067
1998 118,395
1999 129,712
2000 142,107
Later 11,766,924
-----------
Total $12,363,382
===========
On December 9, 1993, the Partnership refinanced Brooklane Apartments,
Presidential Estates Apartments and Ravenwood Apartments. Terms of
these refinancings are as follows:
Presidential Estates: Loan amount of $4,994,700 with monthly
installments of principal and interest of $33,566 beginning February 1,
1994 with possible interest rate adjustments every six months limited
to 1% per adjustment date, due 2004.
Brooklane Apartments: Loan amount of $6,632,000 with monthly
installments of principal and interest of $44,569 beginning February 1,
1994 with possible interest rate adjustments every six months, due
2004.
Ravenwood: Loan amount of $3,105,500 with monthly installments of
principal and interest of $20,870 beginning February 1, 1994 with
possible interest rate adjustments every six months limited to 1% per
adjustment date, due 2004. (The Partnership share of the debt is 30% -
see note 9).
The loan amounts above are subject to a prepayment premium ranging from
1%-3% if prepaid during the first three years of the loan. No
prepayment premium is assessed in years thereafter.
All of the above debt is non-recourse to the individual partners.
-8-
<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995, 1994 AND 1993
4. NOTES PAYABLE
In 1993 the Partnership entered into three separate promissory notes
totaling $415,500 to pay for some of the cost of the refinancings.
These three notes contain various repayment terms.
Two of these notes totalling $115,500 were paid prior to March 15,
1994. The remaining note in the amount of $300,000 required interest
only payments of 8% through July 1, 1994. Commencing August 1, 1994,
monthly principal and interest payments are required with the entire
balance due and payable December 31, 1996.
The maximum amount of these loans during 1993 was $415,500. The
weighted average balance of these loans during 1995, 1994 and 1993 was
$73,755, $261,857 and $25,044, respectively. The weighted average
interest rate during 1995, 1994 and 1993 was 10.84%, 4.16% and 5.8%,
respectively.
5. RELATED PARTY TRANSACTIONS
The partners of Griffin Associates-IV, the general partner of the
Partnership, are also owners and employees of Griffin Companies, a
Minnesota corporation. Accounts payable - affiliates consists of unpaid
management fees to and advances from Griffin Companies. The following
is a summary of approximate fees incurred for the years ended December
31:
1995 1994 1993
---- ---- ----
Property management fees $ 192,305 $ 183,022 $ 184,543
Major improvement
supervisory fees 33,296 70,414 15,846
6. TAXABLE LOSS
The net loss shown on the financial statements is reconciled to the
taxable loss as follows:
1995 1994 1993
---- ---- ----
Net loss per
financial statements $ (37,252) $ (103,729) $ (846,458)
Excess of tax depreciation
over financial statement
depreciation (236,392) (240,445) (246,140)
Loss on extinguishment of debt
recognized for financial
statements -- -- 78,215
Interest expense not deducted
for tax purposes -- -- 143,473
Accrued real estate taxes not
deducted for tax purposes 10,942 9,894 --
Real estate tax expense for tax
purposes in excess of financial
statement expense (9,894) (10,585) (425,413)
Prepaid rent recognized as
income for tax purposes 10,124 9,325 --
Rental income not recognized
for tax purposes (9,325) (9,581) (2,623)
Other -- 4 (7,822)
-------- --------- ---------
Taxable loss $ (271,797) $ (345,117) $(1,306,768)
========== ========== ===========
-9-
<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995, 1994 AND 1993
7. PARTNERS' DEFICIT RECONCILIATION
Reconciliation of financial statement deficit to tax return deficit is
as follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
Deficit per
financial statements $(2,290,033) $(2,252,781) $(2,140,567)
Cumulative excess of tax
depreciation over financial
statement depreciation (3,490,410) (3,254,018) (3,013,573)
Accrued real estate taxes not
deducted for tax purposes 10,942 9,875 10,566
Prepaid rent recognized as
income for tax purposes 31,279 21,155 11,830
Rental income not recognized
for tax purposes (21,529) (12,204) (2,623)
Other 269 288 284
----------- ----------- -----------
Deficit per tax return $(5,759,482) $(5,487,685) $(5,134,083)
=========== =========== ===========
</TABLE>
8. JOINT VENTURE
On April 26, 1985, Griffin Real Estate Fund-IV entered into a joint
venture with Griffin Real Estate Fund-V for the purpose of purchasing
Ravenwood Apartments, with Griffin Real Estate Fund-V designated as the
managing partner. Griffin Real Estate Fund-IV contributed $330,000
(30%) and Griffin Real Estate Fund-V contributed $770,000 (70%) to the
venture. All allocations of cash flow, tax consequences, expenses, and
future contributions are to be in the ratio of 30% to 70%. Summarized
financial information for the Ravenwood Joint Venture for the years
ended December 31,:
<TABLE>
<CAPTION>
1995 1994 1993
----------- ----------- -----------
<S> <C> <C> <C>
Balance Sheet-
Property and equipment - net $ 2,587,018 $ 2,721,963 $ 2,831,873
Other Assets 259,306 293,503 343,718
----------- ----------- -----------
Total Assets $ 2,846,324 $ 3,015,466 $ 3,175,591
=========== =========== ===========
Mortgage notes payable $ 3,057,287 $ 3,079,538 $ 3,105,500
Other liabilities 142,275 120,178 189,821
Partners' deficit (353,238) (184,250) (119,730)
----------- ----------- -----------
Total Liabilities and
Partners' Deficit $ 2,846,324 $ 3,015,466 $ 3,175,591
=========== =========== ===========
Statements of Operations
Operating revenues $ 908,745 $ 933,863 $ 905,292
Operating expenses 1,077,735 998,383 962,033
----------- ----------- -----------
Net Loss $ (168,990) $ (64,520) $ (56,741)
=========== =========== ===========
</TABLE>
The Partnership accounts for its 30% interest in the joint venture by
including its 30% share of the joint venture assets, liabilities and
operations in the Partnership financial statements. Such pro rata
accounting is appropriate since the controlling majority of each of the
general partners of the joint venture owners consists of the same
individuals.
-10-
<PAGE>
SCHEDULE III
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Costs
Capitalized
Subsequent
Initial Cost to to Gross Amount at Which Carried
Partnership (a) Acquisition at Close of Period (b) (c)
------------------ --------- --------------------------------- Date
Bldgs/ Land/Bldg Buildings Accumulated of Date
Description Encumbrances Land Improve Improve Land & Improve Total Deprec. (d) Const Acquired
- ----------- ------------ ---- ------- ------- ---- --------- ----- ----------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INDIANAPOLIS, IN
Presidential
Estates Apts $ 4,917,157 $ 231,093 $ 6,765,021 $ 1,017,260 $ 231,093 $ 7,782,281 $ 8,013,374 $3,654,477 1978 2/10/84
BROWN DEER, WI
Brooklane Apts. 6,529,039 834,000 7,487,670 961,056 834,000 8,448,726 9,282,726 3,743,793 1969 12/27/84
CINCINNATI, OH
Ravenwood Apts. 917,186 138,000 1,064,925 138,238 138,000 1,203,163 1,341,163 565,057 1973 4/30/85
Discounts - - - - - (2,012,257) (2,012,257) (927,385)
---------- --------- ---------- ---------- --------- ---------- ---------- ---------
Total $12,363,382 $1,203,093 $15,317,616 $ 2,116,554 $1,203,093 $15,421,913 $16,625,006 $7,035,942
========== ========= ========== ========== ========= ========== ========== =========
</TABLE>
(a) The cost to the Partnership represents the original purchase price of
the properties.
(b) The aggregate cost of real estate owned at December 31, 1995 for
federal income tax purposes is $18,637,263.
(c) Reconciliation of property:
1993 1994 1995
----------- ----------- -----------
Balance at beginning of period $15,798,801 $15,925,306 $16,425,728
Additions during period
Improvements 126,505 500,422 199,278
----------- ----------- -----------
Balance at end of period $15,925,306 $16,425,728 $16,625,006
=========== =========== ===========
(d) Reconciliation of accumulated depreciation:
Balance at beginning of period $ 5,307,293 $ 5,875,460 $ 6,449,249
Depreciation expense for period 568,167 573,789 586,693
----------- ----------- -----------
Balance at end of period $ 5,875,460 $ 6,449,249 $ 7,035,942
=========== =========== ===========
Depreciation calculated on 5-27.5 year lives.
-11-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 423,615
<SECURITIES> 0
<RECEIVABLES> 50,088
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 989,454
<PP&E> 16,625,006
<DEPRECIATION> 7,035,942
<TOTAL-ASSETS> 10,885,194
<CURRENT-LIABILITIES> 811,845
<BONDS> 12,363,382
0
0
<COMMON> 0
<OTHER-SE> (2,290,033)<F1>
<TOTAL-LIABILITY-AND-EQUITY> 10,885,194
<SALES> 0
<TOTAL-REVENUES> 3,575,492
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,477,797
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,134,947
<INCOME-PRETAX> (37,252)
<INCOME-TAX> 0
<INCOME-CONTINUING> (37,252)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (37,252)
<EPS-PRIMARY> (2.79)<F2>
<EPS-DILUTED> 0
<FN>
<F1>This entity is a limited partnership. The Other Stockholders Equity line
represents total Partnership equity.
<F2>The EPS-Primary line represents net loss per limited partnership unit.
</FN>
</TABLE>
