SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- -----
EXCHANGE ACT OF 1934.
For the quarterly period ended June 30, 1997
-------------
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 0-13357
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BALCOR EQUITY PROPERTIES-XVIII
A REAL ESTATE LIMITED PARTNERSHIP
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Illinois 36-3274349
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2355 Waukegan Rd., Bannockburn, Illinois 60015
- ---------------------------------------- -------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 267-1600
--------------
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
----- -----
<PAGE>
BALCOR EQUITY PROPERTIES-XVIII
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
BALANCE SHEETS
June 30, 1997 and December 31, 1996
(Unaudited)
ASSETS
1997 1996
-------------- --------------
Cash and cash equivalents $ 1,495,580 $ 10,272,801
Escrow deposits 181,565 263,326
Accounts and accrued interest receivable 6,408 100,430
Note receivable 31,878
Prepaid expenses 17,314
Deferred expenses, net of accumulated
amortization of $90,597 in 1997
and $79,273 in 1996 22,650 33,974
-------------- --------------
1,706,203 10,719,723
-------------- --------------
Investment in real estate:
Land 778,460 778,460
Buildings and improvements 8,051,683 8,051,683
-------------- --------------
8,830,143 8,830,143
Less accumulated depreciation 3,805,914 3,684,012
-------------- --------------
Investment in real estate, net of
accumulated depreciation 5,024,229 5,146,131
-------------- --------------
$ 6,730,432 $ 15,865,854
============== ==============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 4,947 $ 44,904
Due to affiliates 66,585 98,947
Accrued liabilities, principally
real estate taxes 86,882 167,154
Security deposits 14,875 14,456
Mortgage note payable 5,076,293 5,101,842
-------------- --------------
Total liabilities 5,249,582 5,427,303
-------------- --------------
<PAGE>
BALCOR EQUITY PROPERTIES-XVIII
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
BALANCE SHEETS
June 30, 1997 and December 31, 1996
(Unaudited)
(Continued)
Commitments and contingencies
Limited Partners' capital (52,811
Interests issued and outstanding) 1,654,317 10,501,057
General Partner's deficit (173,467) (62,506)
-------------- --------------
Total partners' capital 1,480,850 10,438,551
-------------- --------------
$ 6,730,432 $ 15,865,854
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PROPERTIES-XVIII
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the six months ended June 30, 1997 and 1996
(Unaudited)
1997 1996
-------------- --------------
Income:
Rental $ 602,642 $ 3,691,065
Service 11,890 214,031
Interest on short-term investments 65,882 274,473
-------------- --------------
Total income 680,414 4,179,569
-------------- --------------
Expenses:
Interest on mortgage notes payable 218,671 1,056,818
Depreciation 121,902 791,338
Amortization of deferred expenses 11,324 39,789
Property operating 574,437 1,351,955
Real estate taxes 93,493 508,699
Property management fees 30,355 251,389
Administrative 124,442 290,776
-------------- --------------
Total expenses 1,174,624 4,290,764
-------------- --------------
(Loss) before gain on sale of
property and extraordinary item (494,210) (111,195)
Gain on sale of property 156,949
-------------- --------------
(Loss) income before extraordinary item (494,210) 45,754
Extraordinary item:
Gain on extinguishment of debt 787,767
-------------- --------------
Net (loss) income $ (494,210) $ 833,521
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PROPERTIES-XVIII
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the six months ended June 30, 1997 and 1996
(Unaudited)
(Continued)
1997 1996
-------------- --------------
(Loss) income before extraordinary item
allocated to General Partner $ (110,961) $ 458
============== ==============
(Loss) income before extraordinary item
allocated to Limited Partners $ (383,249) $ 45,296
============== ==============
(Loss) income before extraordinary item
per Limited Partnership Interest
(52,811 issued and outstanding) $ (7.26) $ 0.86
============== ==============
Extraordinary item allocated to
General Partner None $ 7,878
============== ==============
Extraordinary item allocated to
Limited Partners None $ 779,889
============== ==============
Extraordinary item per Limited
Partnership Interest (52,811
issued and outstanding) None $ 14.77
============== ==============
Net (loss) income allocated
to General Partner $ (110,961) $ 8,336
============== ==============
Net (loss) income allocated
to Limited Partners $ (383,249) $ 825,185
============== ==============
Net (loss) income per Limited Partnership
Interest (52,811 issued and outstanding) $ (7.26) $ 15.63
============== ==============
Distributions to Limited Partners $ 8,463,491 $ 16,635,465
============== ==============
Distributions per Limited Partnership
Interest (52,811 issued and outstanding) $ 160.26 $ 315.00
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PROPERTIES-XVIII
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the quarters ended June 30, 1997 and 1996
(Unaudited)
1997 1996
-------------- --------------
Income:
Rental $ 290,898 $ 1,706,899
Service 7,288 59,453
Interest on short-term investments 21,527 68,876
-------------- --------------
Total income 319,713 1,835,228
-------------- --------------
Expenses:
Interest on mortgage notes payable 109,199 510,324
Depreciation 60,951 395,669
Amortization of deferred expenses 5,662 19,490
Property operating 331,744 622,462
Real estate taxes 43,441 155,162
Property management fees 14,436 88,924
Administrative 68,423 200,417
-------------- --------------
Total expenses 633,856 1,992,448
-------------- --------------
Net (loss) $ (314,143) $ (157,220)
============== ==============
Net (loss) allocated to General Partner $ (11,817) $ (1,572)
============== ==============
Net (loss) allocated to Limited Partners $ (302,326) $ (155,648)
============== ==============
Net (loss) per Limited Partnership
Interest (52,811 issued and outstanding) $ (5.73) $ (2.95)
============== ==============
Distribution to Limited Partners $ 145,758 $ 16,371,410
============== ==============
Distribution per Limited Partnership
Interest (52,811 issued and outstanding) $ 2.76 $ 310.00
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PROPERTIES-XVIII
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
for the six months ended June 30, 1997 and 1996
(Unaudited)
1997 1996
-------------- --------------
Operating activities:
Net (loss) income $ (494,210) $ 833,521
Adjustments to reconcile net (loss)
income to net cash (used in) or
provided by operating activities:
Gain on sale of property (156,949)
Gain on extinguishment of debt (787,767)
Depreciation of properties 121,902 791,338
Amortization of deferred expenses 11,324 39,789
Net change in:
Escrow deposits 81,761 716,953
Accounts and accrued interest
receivable 94,022 740,615
Note receivable 31,878
Prepaid expenses 17,314 (7,915)
Accounts payable (39,957) (163,974)
Due to affiliates (32,362) 9,865
Accrued liabilities (80,272) (456,111)
Security deposits 419 (30,266)
-------------- --------------
Net cash (used in) or provided
by operating activities (288,181) 1,529,099
-------------- --------------
Investing activities:
Proceeds from sale of real estate 8,646,849
Costs incurred in connection with sale
of real estate (308,794)
--------------
Net cash provided by
investing activities 8,338,055
<PAGE>
BALCOR EQUITY PROPERTIES-XVIII
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
for the six months ended June 30, 1997 and 1996
(Unaudited)
(Continued)
Financing activities:
Distributions to Limited Partners (8,463,491) (16,635,465)
Deemed distribution (156,949)
Release of capital improvement escrow 76,851
Funding of capital improvement escrow (89,100)
Principal payments on mortgage
notes payable (25,549) (203,198)
-------------- --------------
Net cash used in financing activities (8,489,040) (17,007,861)
-------------- --------------
Net change in cash and cash equivalents (8,777,221) (7,140,707)
Cash and cash equivalents at
beginning of period 10,272,801 10,008,666
-------------- --------------
Cash and cash equivalents at end of period $ 1,495,580 $ 2,867,959
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PROPERTIES-XVIII
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
1. Accounting Policies:
(a) The Partnership has restated net income for the six month period ended June
30, 1996 as a result of the state withholding taxes paid in connection with the
sale of the 101 Marietta Tower office complex in February 1996. Such amount had
previously been recorded as an expense of sale. The state withholding taxes are
now reflected as a deemed distribution. Accordingly, there was no change to
partners' capital as a result of this restatement.
(b) For financial statement purposes, in previous years partners were allocated
income and loss in accordance with the profit and loss percentages in the
Partnership Agreement. In order for the capital accounts of the General Partner
and Limited Partners to appropriately reflect their respective remaining
economic interests as provided for in the Partnership Agreement, the General
Partner was allocated adjusted loss during the six months ended June 30, 1997
for financial statement purposes.
(c) In the opinion of management, all adjustments necessary for a fair
presentation have been made to the accompanying statements for the six months
and quarter ended June 30, 1997, and all such adjustments are of a normal and
recurring nature.
2. Partnership Termination:
The Partnership Agreement provides for the dissolution of the Partnership upon
the occurrence of certain events, including the disposition of all interests in
real estate. During 1996, the Partnership sold three properties. During July
1997, the Partnership sold its remaining property, the Canyon Pointe
Apartments. The Partnership has retained a portion of the cash to satisfy
obligations of the Partnership as well as establish a reserve for
contingencies. The timing of the termination of the Partnership and final
distribution of cash will depend upon the nature and extent of liabilities and
contingencies which exist or may arise. Such contingencies may include legal
and other fees stemming from litigation involving the Partnership including,
but not limited to, the lawsuits discussed in Note 6 of Notes to Financial
Statements. In the absence of any contingency, the reserves will be paid within
twelve months of the last property being sold. In the event a contingency
exists, reserves may be held by the Partnership for a longer period of time.
3. Note Receivable:
In connection with the sale of the 101 Marietta Tower office complex, the
Partnership received a $54,558 promissory note for delinquent rent due from a
tenant at the complex. The note bore interest at a rate of 12.25% and was
payable in monthly installments of principal and interest through maturity in
December 1996. The note was repaid in full during the six months ended June
30, 1997.
<PAGE>
4. Interest Expense:
During the six months ended June 30, 1997 and 1996, the Partnership incurred
interest expense on mortgage notes payable of $218,671 and $1,056,818 and paid
interest expense of $218,671 and $1,454,402, respectively.
5. Transactions with Affiliates:
Fees and expenses paid and payable by the Partnership to affiliates during the
six months and quarter ended June 30, 1997 are:
Paid
----------------------
Six Months Quarter Payable
------------ --------- ----------
Reimbursement of expenses to
the General Partner, at cost $ 60,198 $ 51,370 $ 66,585
6. Contingency:
The Partnership is currently involved in two lawsuits whereby the Partnership
and certain affiliates have been named as defendants alleging substantially
similar claims involving certain federal securities law violations with regard
to the adequacy and accuracy of disclosures of information concerning, as well
as marketing efforts related to, the offering of the Limited Partnership
Interests of the Partnership. The defendants continue to vigorously contest
these actions. A plaintiff class has not been certified in either action and,
no determinations of the merits have been made. It is not determinable at this
time whether or not an unfavorable decision in either action would have a
material adverse impact on the financial position, operations and liquidity of
the Partnership. The Partnership believes it has meritorious defenses to
contest the claims.
7. Subsequent Event:
In July 1997, the Partnership sold the Canyon Pointe Apartments for $6,300,000.
From the proceeds of the sale, the Partnership paid $5,071,928 to the third
party mortgage holder in full satisfaction of the first mortgage loan, and paid
$154,363 in selling costs. For financial statement purposes, the Partnership
will recognize a gain of approximately $1,141,000 from the sale of this
property during the third quarter 1997.
<PAGE>
BALCOR EQUITY PROPERTIES-XVIII
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS
Balcor Equity Properties-XVIII A Real Estate Limited Partnership (the
"Partnership") is a limited partnership formed in 1984 to invest in and operate
income-producing real property. The Partnership raised $52,811,000 through the
sale of Limited Partnership Interests and utilized these proceeds to acquire
four real property investments and a minority joint venture interest in one
additional real property. The joint venture property was sold in 1994, the 101
Marietta Tower office complex was sold in February 1996, Mallard Cove
Apartments was sold in July 1996 and Knollwood Village Apartments was sold in
October 1996. The Partnership's remaining property, Canyon Pointe Apartments,
was sold in July 1997.
Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1996 for a more complete understanding of
the Partnership's financial position.
Operations
- ----------
Summary of Operations
- ---------------------
Due to the gain on sale and extraordinary gain on extinguishment of debt
recognized in connection with the 1996 sale of the 101 Marietta Tower office
complex, and a net loss from the operations of Canyon Pointe Apartments in 1997
as described below, the Partnership recognized a net loss during the six months
ended June 30, 1997 as compared to net income during the same period in 1997
and an increase in net loss for the quarter ended June 30, 1997 as compared to
the same period in 1996. Further discussion of the Partnership's operations is
summarized below.
1997 Compared to 1996
- ---------------------
Unless otherwise noted, discussions of fluctuations between 1997 and 1996 refer
to both the six months and quarters ended June 30, 1997 and 1996.
The Partnership sold the 101 Marietta Tower office complex, the Mallard Cove
Apartments and the Knollwood Village Apartments in February, July and October
1996, respectively. As a result, rental and service income, interest expense on
mortgage notes payable, depreciation expense, amortization expense, real estate
tax expense, and property management fees decreased during 1997 as compared to
1996. Rental income also decreased due to lower average rental and occupancy
rates at the Canyon Pointe Apartments.
<PAGE>
Due to the timing of the distribution of sale proceeds from the 1996 property
sales, average cash balances available for investment were lower during 1997
and interest income on short-term investments decreased during 1997 as compared
to 1996.
Property operating expense decreased by approximately $993,000 in 1997 due to
the three property sales in 1996. This decrease was partially offset by an
increase of approximately $97,000 at the Canyon Pointe Apartments related to
additional repair and maintenance expenses and tax consulting fees paid in 1997
of approximately $118,000 in connection with real estate tax refunds which were
received relating to the 101 Marietta Tower office complex.
Professional fees incurred in 1996 relating to the valuation of the
Partnership's real estate assets, resulted in a decrease in administrative
expenses during 1997 as compared to 1996.
The Partnership recognized a gain in 1996 in connection with the sale of the
101 Marietta Tower office complex.
The purchaser of the 101 Marietta Tower office complex acquired the property in
February 1996 subject to the existing first mortgage loan. The Partnership
recognized an extraordinary gain on extinguishment of debt of $787,767 in 1996
representing the difference between the contractual amount of the first
mortgage loan at the date of sale of $17,353,151 and the carrying amount of the
loan for financial statement purposes of $16,565,384 which included $825,781 of
accrued interest and the write off of deferred fees of $38,014.
Liquidity and Capital Resources
- -------------------------------
The cash position of the Partnership as of June 30, 1997 decreased by
approximately $8,777,000 as compared to December 31, 1996 primarily due to
special distributions totaling approximately $8,463,000 made to Limited
Partners in 1997. Cash of approximately $288,000 was used in operating
activities during 1997, which consist primarily of the deficit from operations
of the Canyon Pointe Apartments, expenses related to properties sold in 1996
and administrative expenses which were partially offset by interest income
received on short-term investments. Net cash used in financing activities
consists of approximately $8,463,000 in distributions to Limited Partners from
the available Knollwood Village Apartments sale proceeds and approximately
$26,000 of principal payments on the mortgage note payable.
The Partnership classifies the cash flow performance of its properties as
either positive, a marginal deficit or a significant deficit, each after
consideration of debt service payments. A deficit is considered significant if
it exceeds $250,000 annually or 20% of the property's rental and service
income. The Partnership defines cash flow generated from its properties as an
amount equal to the property's revenue receipts less property related
expenditures, which include debt service payments. The three properties which
were sold in 1996 all generated positive cash flow prior to their sales. During
1997, Canyon Pointe Apartments generated a marginal cash flow deficit as
compared to positive cash flow in 1996 due to a decrease in average rental and
occupancy rates, and higher repair and maintenance expenses. As of June 30,
1997, the occupancy rate at the Canyon Pointe Apartments was 95%.
<PAGE>
In July 1997, the Partnership sold the Canyon Pointe Apartments for a sale
price of $6,300,000. From the proceeds of the sale, the Partnership paid
$5,071,928 to the third party mortgage holder in full satisfaction of the first
mortgage loan, and paid $154,363 in selling costs. The available proceeds will
be distributed to the Limited Partners in October 1997. See Note 7 of Notes to
Financial Statements for additional information.
The Partnership has discontinued regular quarterly distributions; however,
available proceeds from the sale of Canyon Pointe Apartments will be
distributed to Limited Partners in October 1997. To date, Limited Partners have
received distributions of Net Cash Receipts of $288.00 and Net Cash Proceeds of
$412.26, totaling $700.26 per $1,000 Interest, as well as certain tax benefits.
In light of results to date Limited Partners will not recover all of their
original investment.
During 1996, the Partnership sold three properties. During July 1997 the
Partnership sold its remaining property, the Canyon Pointe Apartments. The
Partnership has retained a portion of the cash to satisfy obligations of the
Partnership as well as establish a reserve for contingencies. The timing of the
termination of the Partnership and final distribution of cash will depend upon
the nature and extent of liabilities and contingencies which exist or may
arise. Such contingencies may include legal and other fees stemming from
litigation involving the Partnership including, but not limited to, the
lawsuits discussed in Note 6 of Notes to Financial Statements. In the absence
of any contingency, the reserves will be paid within twelve months of the last
property being sold. In the event a contingency exists, reserves may be held
by the Partnership for a longer period of time.
Inflation has several types of potentially conflicting impacts on real estate
investments. Short-term inflation can increase real estate operating costs
which may or may not be recovered through increased rents and/or sales prices,
depending on general or local economic conditions. In the long-term, inflation
can be expected to increase operating costs and replacement costs and may lead
to increased rental revenues and real estate values.
<PAGE>
BALCOR EQUITY PROPERTIES-XVIII
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
PART II - OTHER INFORMATION
ITEM 5. Other Information
- --------------------------
Canyon Pointe Apartments
- ------------------------
As previously reported, on June 11, 1997, the Partnership contracted to sell
Canyon Pointe Apartments, San Antonio, Texas, to an unaffiliated party,
Churchill Forge, Inc. ("Churchill"), a Massachusetts corporation, for a sale
price of $6,600,000. The Partnership and Churchill subsequently agreed to
reduce the sale price to $6,300,000. In addition, the closing date was extended
and the sale closed on July 31, 1997. Churchill assigned its rights under the
agreement of sale to an affiliate, C.F. Canyon Pointe Associates Limited
Partnership, a Texas limited partnership. The purchaser did not take title to
the property subject to the existing first mortgage loan collateralized by the
property as expected. From the proceeds of the sale, the Partnership repaid the
principal balance of the first mortgage loan of $5,071,928 and paid $126,000 as
a brokerage commission to an affiliate of the third party providing property
management services for the property and $28,363 in closing costs. The
Partnership received the remaining sale proceeds of approximately $1,074,000.
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibits:
(4) Form of Subscription Agreement, previously filed as Exhibit 4.1 to
Amendment No. 1 to Registrant's Registration Statement on Form S-11 dated May
15, 1984 (Registration No. 2-89380), and Form of Confirmation regarding
Interests in the Registrant set forth as Exhibit 4.2 to the Registrant's Report
on Form 10-Q for the quarter ended September 30, 1992 (Commission File No.
0-13357) are incorporated herein by reference.
(10)(a) Agreement of Sale and attachment thereto relating to the sale of the
101 Marietta Tower office building previously filed as Exhibit (2) to the
Registrants Current Report on Form 8-K dated December 19, 1995 is incorporated
herein by reference.
(b)(i) Agreement of Sale and attachment thereto relating to the sale of the
Mallard Cove Apartments previously filed as Exhibit 2 to the Registrant's
Current Report on Form 8-K dated April 23, 1996 is incorporated herein by
reference.
(ii) Master Amendment and Agreement dated May 22, 1996 relating to the sale of
Mallard Cove Apartments, Greenville, South Carolina, previously filed as
Exhibit (10)(b)(ii) to the Partnership's Quarterly Report on Form 10-Q for the
quarter ended June 30, 1996 is incorporated herein by reference.
<PAGE>
(iii) Master Amendment and Agreement #2 dated May 22, 1996 relating to the sale
of Mallard Cove Apartments, Greenville, South Carolina, previously filed as
Exhibit (10)(b)(iii) to the Partnership's Quarterly Report on Form 10-Q for the
quarter ended June 30, 1996 is incorporated herein by reference.
(c)(i) Agreement of Sale and attachment thereto relating to the sale of the
Knollwood Village Apartments, Grand Blanc, Michigan, previously filed as
Exhibit (10)(d) to the Registrant's Quarterly Report on Form 10-Q for the
quarter ended June 30, 1996 is incorporated herein by reference.
(ii) First Amendment to the Agreement of Sale dated August 9, 1996 relating to
the sale of the Knollwood Village Apartments, Grand Blanc, Michigan, previously
filed as Exhibit (10)(d)(ii) to the Registrant's Quarterly Report on Form 10-Q
for the quarter ended September 30, 1996 is incorporated herein by reference.
(d) Agreement of Sale and attachment thereto relating to the sale of the Canyon
Pointe Apartments, San Antonio, Texas previously filed as Exhibit (2) to the
Registrant's Current Report on Form 8-K dated June 11, 1997, is incorporated
herein by reference.
(27) Financial Data Schedule of the Registrant for the quarter ending June 30,
1997 is attached hereto.
(b) Reports on Form 8-K: A Current Report on Form 8-K dated June 11, 1997 was
filed reporting the Agreement of Sale relating to the sale of the Canyon Pointe
Apartments, San Antonio, Texas.
<PAGE>
SIGNATURES
Pursuant to the requirements 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.
BALCOR EQUITY PROPERTIES - XVIII
A REAL ESTATE LIMITED PARTNERSHIP
By: /s/ Thomas E. Meador
-----------------------------------
Thomas E. Meador
President and Chief Executive
Officer (Principal Executive
Officer) of Balcor Equity Partners - XVIII,
the General Partner
By: /s/ Jayne A. Kosik
-----------------------------------
Jayne A. Kosik
Managing Director and
Chief Financial Officer
(Principal Accounting Officer)
of Balcor Equity Partners - XVIII,
the General Partner
Date: August 12, 1997
-------------------
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 1496
<SECURITIES> 0
<RECEIVABLES> 6
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1684
<PP&E> 8830
<DEPRECIATION> 3806
<TOTAL-ASSETS> 6730
<CURRENT-LIABILITIES> 173
<BONDS> 5076
0
0
<COMMON> 0
<OTHER-SE> 1481
<TOTAL-LIABILITY-AND-EQUITY> 6730
<SALES> 0
<TOTAL-REVENUES> 680
<CGS> 0
<TOTAL-COSTS> 698
<OTHER-EXPENSES> 257
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 219
<INCOME-PRETAX> (494)
<INCOME-TAX> 0
<INCOME-CONTINUING> (494)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (494)
<EPS-PRIMARY> (7.26)
<EPS-DILUTED> (7.26)
</TABLE>
