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 August 14, 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 PRESIDENTIAL ESTATES APARTMENTS
OF INDIANAPOLIS, INDIANA
On August 14, 1998, Griffin Real Estate Fund-IV, A Limited Partnership sold the
Presidential Estates Apartments to FSF Presidential Estates Associates, LLC.
Description of Property
Presidential Estates Apartments is a 244 unit apartment complex located at 1808
Century Way, Indianapolis, Indiana. The property was originally acquired by
Griffin Real Estate Fund-IV on February 10 , 1984 for $6,700,000. A down payment
of $1,400,000 was made with the balance of $5,300,000 financed by a first
mortgage loan. On December 10, 1993, the property debt was refinanced with a new
$4,994,700 first mortgage and the previous mortgage was extinguished.
Sale of Property
The Presidential Estates Apartments sales price of $8,900,000 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 $4,809,109, accrued
interest of $38,962 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 $ 10,457 $ 420,756
Real estate tax escrow deposits 453,036 (158,694) 294,342
Receivables and other assets 47,242 (12,655) 34,587
------------ ------------ ------------
Total 910,577 (160,892) 749,685
------------ ------------ ------------
PROPERTY AND EQUIPMENT:
Land 1,065,093 (231,093) 834,000
Buildings and improvements 13,839,292 (6,290,757) 7,548,535
Furniture and equipment 889,787 (531,489) 358,298
------------ ------------ ------------
Total 15,794,172 (7,053,339) 8,740,833
Less accumulated depreciation 7,570,126 (3,585,583) 3,984,543
------------ ------------ ------------
Property and equipment - net 8,224,046 (3,467,756) 4,756,290
------------ ------------ ------------
Deferred expenses less accumulated
amortization - $142,082 205,868 (99,183) 106,685
------------ ------------ ------------
TOTAL ASSETS $ 9,340,491 $ (3,727,831) $ 5,612,660
============ ============ ============
LIABILITES AND PARTNERS' EQUITY:
LIABILITES:
Accounts payable:
Affiliate $ 9,834 $ -- $ 9,834
Other 523,505 (154,701) 368,804
Security deposits 75,750 (32,497) 43,253
Accrued interest 89,503 (38,449) 51,054
Mortgage notes payable 11,261,224 (4,837,696) 6,423,528
------------ ------------ ------------
Total liabilities 11,959,816 (5,063,343) 6,896,473
------------ ------------ ------------
PARTNERS' EQUITY:
General Partner (218,239) 13,355 (204,884)
Limited Partners (2,401,086) 1,322,157 (1,078,929)
------------ ------------ ------------
Total Partners' Equity (2,619,325) 1,335,512 (1,283,813)
------------ ------------ ------------
TOTAL LIABILITIES AND
PARTNERS' EQUITY $ 9,340,491 $ (3,727,831) $ 5,612,660
============ ============ ============
</TABLE>
* The after disposition proforma represents the historical operations of the
Partnership which does not include assets or liabilities relating to the
disposed property.
2
<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 $(1,428,218) $ 1,938,036
Interest 23,515 (3,226) 20,289
Gain on sale of property
and equipment 288,818 -- 288,818
Other 142,231 (37,955) 104,276
----------- ----------- -----------
Total revenues 3,820,818 (1,469,399) 2,351,419
----------- ----------- -----------
EXPENSES:
Interest 1,102,676 (455,608) 647,068
Depreciation and amortization 635,694 (390,124) 245,570
Real Estate Taxes 404,715 (135,440) 269,275
Repairs and maintenance 452,626 (195,288) 257,338
Utilities 261,577 (81,944) 179,633
Salaries and employee benefits 398,680 (197,203) 201,477
Management fees to related parties 189,103 (75,612) 113,491
Administratiave 125,273 (34,345) 90,928
Insurance 68,839 (31,436) 37,403
Bad Debt 19,732 (14,229) 5,503
Other 7,175 -- 7,175
----------- ----------- -----------
Total Expenses 3,666,090 (1,611,229) 2,054,861
----------- ----------- -----------
NET INCOME $ 154,728 $ 141,830 $ 296,558
=========== =========== ===========
NET INCOME ALLOCATED
TO GENERAL PARTNERS $ 24,504 $ 1,418 $ 25,922
=========== =========== ===========
NET INCOME ALLOCATED
TO LIMITED PARTNERS $ 130,224 $ 140,412 $ 270,636
=========== =========== ===========
PER UNIT:
NET INCOME $ 10 $ 11 $ 21
=========== =========== ===========
</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.
3
<PAGE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS
JUNE 30, 1998
<TABLE>
<CAPTION>
* After Disposition
ASSETS: Actual Adjustments Proforma
- ------- ------------ ------------ --------
<S> <C> <C> <C>
Cash and cash equivalents $ 548,615 $ 21,039 $ 569,654
Receivables and other assets 604,859 (189,165) 415,694
------------ ------------ ------------
Total 1,153,474 (168,126) 985,348
------------ ------------ ------------
PROPERTY AND EQUIPMENT:
Land 1,065,093 (231,093) 834,000
Buildings and Improvements 13,839,292 (6,290,756) 7,548,536
Furniture and Equipment 889,787 (531,489) 358,298
------------ ------------ ------------
Total 15,794,172 (7,053,338) 8,740,834
Less accumulated depreciation 7,847,963 (4,580,784) 3,267,179
------------ ------------ ------------
Property and Equipment - net 7,946,209 (2,472,554) 5,473,655
------------ ------------ ------------
TOTAL ASSETS $ 9,099,683 $ (2,640,680) $ 6,459,003
============ ============ ============
LIABILITIES AND PARTNERS' EQUITY:
LIABILITIES:
Accounts payable and accrued
liabilities $ 556,626 $ (204,301) $ 352,325
Security Deposit 72,546 (32,185) 40,361
Mortgage notes payable 11,211,950 (4,816,528) 6,395,422
------------ ------------ ------------
Total liabilities 11,841,122 (5,053,014) 6,788,108
------------ ------------ ------------
PARTNERS' EQUITY:
General Partners (226,686) 24,123 (202,563)
Limited Partners (2,514,753) 2,388,211 (126,542)
------------ ------------ ------------
Total Partners' Equity (2,741,439) 2,412,334 (329,105)
------------ ------------ ------------
TOTAL LIABILITIES AND
PARTNERS' EQUITY $ 9,099,683 $ (2,640,680) $ 6,459,003
============ ============ ============
</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
SIX MONTHS ENDED JUNE 30, 1998
(unaudited)
<TABLE>
<CAPTION>
REVENUES: Actual Adjustments * After Disposition
- --------- ----------- ----------- Proforma
-----------
<S> <C> <C> <C>
Rental Income $ 1,642,494 $ (765,381) $ 877,113
Interest Income 13,656 -- 13,656
Other Income 212,708 (194,582) 18,126
----------- ----------- -----------
Total Revenues 1,868,858 (959,963) 908,895
----------- ----------- -----------
OPERATING EXPENSES:
Operating Expenses 972,432 (383,821) 588,611
Interest Expense 542,673 (233,126) 309,547
Depreciation and amortization 295,235 (158,554) 136,681
----------- ----------- -----------
Total Operating Expenses 1,810,340 (775,501) 1,034,839
----------- ----------- -----------
NET INCOME (LOSS) 58,518 (184,462) (125,944)
NET INCOME (LOSS) ALLOCATED
TO GENERAL PARTNER 585 (1,845) (1,260)
----------- ----------- -----------
NET INCOME (LOSS) ALLOCATED
TO LIMITED PARTNERS $ 57,933 $ (182,617) $ (124,684)
=========== =========== ===========
NET (LOSS) INCOME $ 4.39 $ (13.84) $ (9.45)
=========== =========== ===========
</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.
5
<PAGE>
Signatures
Pursuant to the requirements of the Securities and Exchange Act of 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: August 28, 1998 BY: /s/ Larry D. Fransen
------------------------------
Larry D. Fransen
General Partner
6
