UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report December 7, 1998
GRIFFIN REAL ESTATE FUND-IV, A LIMITED PARTNERSHIP
MINNESOTA
Commission file number 0-13426
IRS Employer Identification No. 41-1470203
510 Marquette Avenue, Suite 300, Minneapolis, MN 55402
Registrant's telephone number: (612) 338-2828
<PAGE>
Item 2. Acquisition or disposition of assets.
DISPOSITION OF BROOKLANE APARTMENTS
OF BROWN DEER, WISCONSIN
On December 7 1998, Griffin Real Estate Fund-IV, A Limited Partnership sold the
Presidential Estates Apartments to Brown Deer Leased Housing Associates, L.P.
Description of Property
Brooklane Apartments is a 278 unit apartment complex located at 4475 West Dean
Road, Brown Deer, Wisconsin. The property was originally acquired by Griffin
Real Estate Fund-IV on December 27, 1984 for $8,150,000. A down payment of
$2,250,000 was made with the balance of $5,900,000 financed by a wrap around
mortgage loan. On December 10, 1993, the property debt was refinanced with a new
$6,632,000 first mortgage and the previous mortgage was extinguished.
Sale of Property
The Brooklane Apartments sales price of $10,750,000 cash was arrived at through
negotiations with the buyer who had no material relationship to Griffin Real
Estate Fund-IV, to any affiliates of Griffin Real Estate Fund-IV, to its General
Partner, or to any associates of its General Partner. With the proceeds of the
sale, the mortgage principal balance of $6,370,176 accrued interest of $103,240
and sales costs were paid.
Item 7. Financial Statements and Exhibits
The following documents are filed as part of this report:
Proforma financial information.
1
<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
BALANCE SHEETS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
* After
ASSETS: Actual Adjustment Disposition Proforma
------ ---------- --------------------
<S> <C> <C> <C>
Cash and cash equivalents $ 410,299 $ (68,812) $ 341,487
Real estate tax escrow deposits 453,036 (294,343) 158,693
Receivables and other assets 47,242 (21,265) 25,977
------------ ------------ ------------
Total 910,577 (384,420) 526,157
------------ ------------ ------------
PROPERTY AND EQUIPMENT:
Land 1,065,093 (834,000) 231,093
Buildings and improvements 13,839,292 (7,120,148) 6,719,144
Furniture and equipment 889,787 (358,298) 531,489
------------ ------------ ------------
Total 15,794,172 (8,312,446) 7,481,726
Less accumulated depreciation 7,570,126 (3,984,543) 3,585,583
------------ ------------ ------------
Property and equipment - net 8,224,046 (4,327,903) 3,896,143
------------ ------------ ------------
Deferred expenses less accumulated
amortization - $142,082 205,868 (106,685) 99,183
------------ ------------ ------------
TOTAL ASSETS $ 9,340,491 $ (4,819,008) $ 4,521,483
============ ============ ============
LIABILITES AND PARTNERS' EQUITY:
LIABILITES:
Accounts payable:
Affiliate $ 9,834 $ -- $ 9,834
Other 523,505 (361,856) 161,649
Security deposits 75,750 (43,253) 32,497
Accrued interest 89,503 (51,053) 38,450
Mortgage notes payable 11,261,224 (6,423,528) 4,837,696
------------ ------------ ------------
Total liabilities 11,959,816 (6,879,690) 5,080,126
------------ ------------ ------------
PARTNERS' EQUITY:
General Partner (218,239) 20,607 (197,632)
Limited Partners (2,401,086) 2,040,075 (361,011)
------------ ------------ ------------
Total Partners' Equity (2,619,325) 2,060,682 (558,643)
------------ ------------ ------------
TOTAL LIABILITIES AND
PARTNERS' EQUITY $ 9,340,491 $ (4,819,008) $ 4,521,483
============ ============ ============
</TABLE>
* The after disposition proforma represents the historical operations of the
Partnership which does not include assets or liabilities relating to the
disposed property.
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<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
* After Disposition
REVENUES: Actual Adjustment Proforma
------ ---------- --------
<S> <C> <C> <C>
Rent (less apartment vacancies: 1997,
$364,819) $ 3,366,254 $(1,822,756) $ 1,543,498
Interest 23,515 (755) 22,760
Gain on sale of property
and equipment 288,818 -- 288,818
Other 142,231 (61,428) 80,803
----------- ----------- -----------
Total revenues 3,820,818 (1,884,939) 1,935,879
----------- ----------- -----------
EXPENSES:
Interest 1,102,676 (604,960) 497,716
Depreciation and amortization 635,694 (324,967) 310,727
Real Estate Taxes 404,715 (275,679) 129,036
Repairs and maintenance 452,626 (242,530) 210,096
Utilities 261,577 (156,732) 104,845
Salaries and employee benefits 398,680 (173,466) 225,214
Management fees to related parties 189,103 (93,996) 95,107
Administratiave 125,273 (39,986) 85,287
Insurance 68,839 (31,690) 37,149
Bad Debt 19,732 (3,606) 16,126
Other 7,175 (7,175) --
----------- ----------- -----------
Total Expenses 3,666,090 (1,954,787) 1,711,303
----------- ----------- -----------
NET INCOME $ 154,728 $ 69,848 $ 224,576
=========== =========== ===========
NET INCOME ALLOCATED
TO GENERAL PARTNERS $ 24,504 $ 698 $ 25,202
=========== =========== ===========
NET INCOME ALLOCATED
TO LIMITED PARTNERS $ 130,224 $ 69,150 $ 199,374
=========== =========== ===========
PER UNIT:
NET INCOME $ 10 $ 5 $ 15
=========== =========== ===========
</TABLE>
*The after disposition proforma represents the historical operations of the
Partnership which does not include operating income or expenses relating to the
disposed property, or the gain or loss on disposal.
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<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS
SEPTEMBER 30, 1998
(unaudited)
<TABLE>
<CAPTION>
* After Disposition
ASSETS: Actual Adjustments Proforma
------ ----------- --------
<S> <C> <C> <C>
Cash and cash equivalents $ 370,040 $ (29,852) $ 340,188
Receivables and other assets 420,667 (414,141) 6,526
----------- ----------- -----------
Total 790,707 (443,993) 346,714
----------- ----------- -----------
PROPERTY AND EQUIPMENT:
Land 834,000 (834,000) --
Buildings and Improvements 7,548,536 (7,548,536) --
Furniture and Equipment 358,298 (358,298) --
----------- ----------- -----------
Total 8,740,834 (8,740,834) --
Less accumulated depreciation 4,212,650 (4,212,650) --
----------- ----------- -----------
Property and Equipment - net 4,528,184 (4,528,184) --
----------- ----------- -----------
TOTAL ASSETS $ 5,318,891 $(4,972,177) $ 346,714
=========== =========== ===========
LIABILITIES AND PARTNERS' EQUITY:
LIABILITIES:
Accounts payable and accrued
liabilities $ 353,385 $ (350,016) $ 3,369
Security Deposit 43,129 (43,129) --
Mortgage notes payable 6,380,479 (6,380,479) --
----------- ----------- -----------
Total liabilities 6,776,993 (6,773,624) 3,369
----------- ----------- -----------
PARTNERS' EQUITY:
General Partners (55,858) 18,014 (37,844)
Limited Partners (1,402,244) 1,783,433 381,189
----------- ----------- -----------
Total Partners' Equity (1,458,102) 1,801,447 343,345
----------- ----------- -----------
TOTAL LIABILITIES AND
PARTNERS' EQUITY $ 5,318,891 $(4,972,177) $ 346,714
=========== =========== ===========
</TABLE>
*The after disposition proforma represents the historical operations of the
Partnership which does not include assets or liabilities relating to the
disposed property.
4
<PAGE>
GRIFFIN REAL ESTATE FUND -IV
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1998
(unaudited)
<TABLE>
<CAPTION>
REVENUES: Actual Adjustments * After Disposition
------ ----------- Proforma
--------
<S> <C> <C> <C>
Rental Income $ 2,277,857 $ (1,342,096) $ 935,761
Interest Income 30,053 -- 30,053
Gain on Sale of Property 5,563,968 -- 5,563,968
Other Income 235,467 (34,983) 200,484
------------ ------------ ------------
Total Revenues 8,107,345 (1,377,079) 6,730,266
------------ ------------ ------------
OPERATING EXPENSES:
Operating Expenses 1,319,694 (858,389) 461,305
Interest Expense 772,104 (462,264) 309,840
Depreciation and amortization 407,018 (241,631) 165,387
------------ ------------ ------------
Total Operating Expenses 2,498,816 (1,562,284) 936,532
------------ ------------ ------------
NET INCOME BEFORE
EXTRAORDINARY ITEM 5,608,529 185,205 5,793,734
EXTRAORDINARY ITEM -
LOSS ON DEBT
EXTINGUISHMENT (88,849) -- (88,849)
------------ ------------ ------------
NET INCOME 5,519,680 (185,205) 5,704,885
NET INCOME ALLOCATED
TO GENERAL PARTNER 217,638 (1,852) 219,490
------------ ------------ ------------
NET INCOME ALLOCATED
TO LIMITED PARTNERS $ 5,302,042 $ (183,353) $ 5,485,395
============ ============ ============
PER UNIT:
NET INCOME BEFORE
EXTRAORDINARY ITEM $ 408.33 $ 13.89 $ 422.22
EXTRAORDINARY ITEM (6.66) -- (6.66)
------------ ------------ ------------
NET INCOME $ 401.67 $ 13.89 $ 415.56
============ ============ ============
</TABLE>
*The after disposition proforma represents the historical operations of the
Partnership which does not include operating income or expenses relating to the
disposed property, or the gain or loss on disposal.
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<PAGE>
Signatures
Pursuant to the requirements of the Securities and Exchange Act o f 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GRIFFIN REAL ESTATE FUND IV,
A LIMITED PARTNERSHIP
BY: GRIFFIN ASSOCIATES IV
ITS GENERAL PARTNER
Date: December 10, 1998 BY: /s/ Larry D. Fransen
--------------------------------
Larry D. Fransen
General Partner
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