UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the period ended March 31, 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 0-14007
---------
MCNEIL REAL ESTATE FUND XX, L.P.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
California 33-0050225
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
13760 Noel Road, Suite 600, LB70, Dallas, Texas, 75240
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (972) 448-5800
-----------------------------
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 and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
<PAGE>
MCNEIL REAL ESTATE FUND XX, L.P.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
- ------- --------------------
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
--------------- --------------
ASSETS
- ------
Real estate investments:
<S> <C> <C>
Land..................................................... $ 699,697 $ 699,697
Buildings and improvements............................... 6,196,739 6,192,970
-------------- -------------
6,896,436 6,892,667
Less: Accumulated depreciation.......................... (1,520,667) (1,435,080)
-------------- -------------
5,375,769 5,457,587
Mortgage loan investments, net of allowance of
$792,013 at March 31, 1997 and
December 31, 1996........................................ 3,370,884 3,404,553
Mortgage loan investment - affiliate........................ 733,900 733,900
Cash and cash equivalents .................................. 2,499,417 3,188,257
Cash segregated for security deposits....................... 58,868 54,950
Interest and other accounts receivable...................... 77,260 74,629
Escrow deposits............................................. 53,111 153,977
Deferred borrowing costs, net of accumulated amorti-
zation of $49,012 and $45,275 at March 31, 1997
and December 31, 1996, respectively...................... 112,482 116,219
Prepaid expenses and other assets........................... 4,200 5,034
-------------- -------------
$ 12,285,891 $ 13,189,106
============== =============
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
- ------------------------------------------
Mortgage note payable, net.................................. $ 2,704,067 $ 2,715,909
Accounts payable and other accrued expenses................. 40,681 97,230
Accrued property taxes...................................... 44,314 130,957
Payable to affiliates....................................... 43,546 40,962
Deferred revenue............................................ 162,196 163,852
Security deposits and deferred rental revenue............... 41,325 43,782
-------------- -------------
3,036,129 3,192,692
-------------- -------------
Partners' equity (deficit):
Limited partners - 60,000 limited partnership units
authorized; 49,512 limited partnership units issued
and outstanding at March 31, 1997 and December 31,
1996................................................... 9,568,592 10,315,277
General Partner.......................................... (318,830) (318,863)
-------------- -------------
9,249,762 9,996,414
-------------- -------------
$ 12,285,891 $ 13,189,106
============== =============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
McNEIL REAL ESTATE FUND XX, L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------------
1997 1996
-------------- --------------
Revenue:
<S> <C> <C>
Rental revenue............................................. $ 330,636 $ 362,907
Interest income on mortgage loan investments............... 67,757 71,014
Interest income on mortgage loan investment -
affiliate................................................. 15,137 15,304
Other interest income....................................... 37,053 46,830
------------- -------------
Total revenue............................................. 450,583 496,055
------------- -------------
Expenses:
Interest.................................................... 62,131 62,881
Depreciation................................................ 85,587 84,626
Property taxes.............................................. 44,419 48,076
Personnel costs............................................. 41,862 36,984
Utilities................................................... 19,616 19,710
Repairs and maintenance..................................... 49,826 31,135
Property management fees -affiliates........................ 16,226 16,885
Other property operating expenses........................... 31,378 18,734
General and administrative.................................. 31,439 28,099
General and administrative -affiliates...................... 64,757 83,222
------------- -------------
Total expenses............................................ 447,241 430,352
------------- -------------
Net income..................................................... $ 3,342 $ 65,703
============= =============
Net income allocable to limited partners....................... $ 3,309 $ 65,046
Net income allocable to General Partner........................ 33 657
------------- -------------
Net income..................................................... $ 3,342 $ 65,703
============= =============
Net income per limited partnership unit........................ $ .07 $ 1.31
============= =============
Distributions per limited partnership unit..................... $ 15.15 $ 12.12
============= =============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XX, L.P.
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
(Unaudited)
For the Three Months Ended March 31, 1997 and 1996
<TABLE>
<CAPTION>
Total
General Limited Partners'
Partner Partners Equity
--------------- --------------- ---------------
<S> <C> <C> <C>
Balance at December 31, 1995.............. $ (320,030) $ 11,399,658 $ 11,079,628
Net income................................ 657 65,046 65,703
Distributions............................. - (599,975) (599,975)
------------- ------------- -------------
Balance at March 31, 1996................. $ (319,373) $ 10,864,729 $ 10,545,356
============= ============= =============
Balance at December 31, 1996.............. $ (318,863) $ 10,315,277 $ 9,996,414
Net income................................ 33 3,309 3,342
Distributions............................. - (749,994) (749,994)
------------- ------------- -------------
Balance at March 31, 1997................. $ (318,830) $ 9,568,592 $ 9,249,762
============= ============= =============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XX, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
Decrease in Cash and Cash Equivalents
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------------------------
1997 1996
------------------- ----------------
Cash flows from operating activities:
<S> <C> <C>
Cash received from tenants........................ $ 324,076 $ 371,445
Cash paid to suppliers............................ (229,469) (224,008)
Cash paid to affiliates........................... (78,399) (64,391)
Interest received................................. 105,759 116,244
Interest received from affiliates................. 12,222 12,221
Interest paid..................................... (56,473) (57,555)
Property taxes paid............................... (105) (12,472)
Property taxes escrowed........................... (32,500) (29,100)
------------------ --------------
Net cash provided by operating activities............ 45,111 112,384
----------------- --------------
Cash flows from investing activities:
Additions to real estate investments.............. (3,769) (3,740)
Collection of principal on mortgage loan
investments..................................... 33,669 32,962
----------------- --------------
Net cash provided by investing activities............ 29,900 29,222
----------------- --------------
Cash flows from financing activities:
Principal payments on mortgage note payable....... (13,857) (12,775)
Distributions paid................................ (749,994) (599,975)
----------------- --------------
Net cash used in financing activities................ (763,851) (612,750)
----------------- --------------
Net decrease in cash and cash equivalents............ (688,840) (471,144)
Cash and cash equivalents at beginning of
period............................................ 3,188,257 3,927,223
----------------- --------------
Cash and cash equivalents at end of period........... $ 2,499,417 $ 3,456,079
================= ==============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XX, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
Reconciliation of Net Income to Net Cash Provided by
Operating Activities
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------------------
1997 1996
---------------- ---------------
<S> <C> <C>
Net income........................................... $ 3,342 $ 65,703
--------------- --------------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation...................................... 85,587 84,626
Amortization of deferred borrowing costs.......... 3,737 3,503
Amortization of discount on mortgage note
payable......................................... 2,015 1,910
Changes in assets and liabilities:
Cash segregated for security deposits........... (3,918) (5,440)
Interest and other accounts receivable.......... (2,631) 6,540
Escrow deposits................................. 100,866 (29,596)
Prepaid expenses and other assets............... 834 (18,087)
Accounts payable and other accrued
expenses...................................... (56,549) (69,855)
Accrued property taxes.......................... (86,643) 35,604
Payable to affiliates - General Partner......... 2,584 35,716
Deferred revenue................................ (1,656) (1,656)
Security deposits and deferred rental
revenue....................................... (2,457) 3,416
--------------- --------------
Total adjustments............................. 41,769 46,681
--------------- --------------
Net cash provided by operating activities............ $ 45,111 $ 112,384
=============== ==============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XX, L.P.
Notes to Financial Statements
March 31, 1997
(Unaudited)
NOTE 1.
- -------
McNeil Real Estate Fund XX, L.P. (the "Partnership"), formerly known as
Southmark Income Investors, Ltd., was organized on July 19, 1984 as a limited
partnership under the provisions of the California Revised Uniform Limited
Partnership Act. The general partner of the Partnership is McNeil Partners, L.P.
(the "General Partner"), a Delaware limited partnership, an affiliate of Robert
A. McNeil ("McNeil"). The principal place of business for the Partnership and
the General Partner is 13760 Noel Road, Suite 700, Dallas, Texas 75240.
In the opinion of management, the financial statements reflect all adjustments
necessary for a fair presentation of the Partnership's financial position and
results of operations. All adjustments were of a normal recurring nature.
However, the results of operations for the three months ended March 31, 1997 are
not necessarily indicative of the results to be expected for the year ending
December 31, 1997.
NOTE 2.
- -------
The financial statements should be read in conjunction with the financial
statements contained in the Partnership's Annual Report on Form 10-K for the
year ended December 31, 1996, and the notes thereto, as filed with the
Securities and Exchange Commission, which is available upon request by writing
to McNeil Real Estate Fund XX, L.P., c/o The Herman Group, 2121 San Jacinto St.,
26th Floor, Dallas, Texas 75201.
NOTE 3.
- -------
The Partnership pays property management fees equal to 5% of the gross rental
receipts for its properties to McNeil Real Estate Management, Inc. ("McREMI"),
an affiliate of the General Partner, for providing property management services.
The Partnership reimburses McREMI for its costs, including overhead, of
administering the Partnership's affairs.
The Partnership is paying an asset management fee which is payable to the
General Partner. Through 1999, the asset management fee is calculated as 1% of
the Partnership's tangible asset value. Tangible asset value is determined by
using the greater of (i) an amount calculated by applying a capitalization rate
of 9% to the annualized net operating income of each property, (ii) a value of
$10,000 per apartment unit or (iii) on 1130 Sacramento, the net book value of
the property is used to arrive at the property tangible asset value. The
property tangible asset value is then added to the book value of all other
assets excluding intangible items. The fee percentage decreases subsequent
to 1999.
<PAGE>
Compensation and reimbursements paid to or accrued for the benefit of the
General Partner and its affiliates are as follows:
Three Months Ended
March 31,
----------------------
1997 1996
--------- ---------
Property management fees................... $ 16,226 $ 16,885
Charged to general and administrative -
affiliates:
Partnership administration.............. 26,579 40,881
Asset management fee.................... 38,178 42,341
-------- --------
$ 80,983 $ 100,107
======== ========
Payable to affiliates at March 31, 1997 and December 31, 1996 consisted
primarily of unpaid property management fees, Partnership general and
administrative expenses and asset management fees and are due and payable from
current operations.
NOTE 4.
- -------
In 1996, the Partnership adopted the Financial Accounting Standards Board's
Statement of Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of."
This statement requires the cessation of depreciation on assets held for sale.
Since 1130 Sacramento Condominiums was placed on the market for sale, no
depreciation will be taken effective April 15, 1997. The Partnership has
received an offer from a non-affiliate to purchase one of the four condominium
units for $1.6 million.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ------- ---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
There has been no significant change in the operations of Sterling Springs
Apartments or 1130 Sacramento Condominiums since December 31, 1996.
The Partnership reported net income of $3,342 for the first three months of 1997
as compared to $65,703 for the same period in 1996. Revenues in 1997 decreased
to $450,583 as compared to $496,055 in 1996, while expenses were $447,241 in
1997 from $430,352 in 1996.
Net cash provided by operating activities was $45,111 for the three months ended
March 31, 1997. The Partnership expended $3,769 for capital improvements, made
$13,857 in principal payments on its mortgage note payable, and collected
$33,669 of principal on mortgage loan investments. After distributions of
$749,994 to the limited partners, cash and cash equivalents totaled $2,499,417
at March 31, 1997, a net decrease of $688,840 from the balance at December 31,
1996.
<PAGE>
RESULTS OF OPERATIONS
- ---------------------
Revenue:
Total revenue decreased by $45,472 for the three month period ended March 31,
1997 as compared to the same period in 1996. The decrease was mainly due to a
decrease in rental revenue and other interest income, as discussed below.
Rental revenue for the first three months of 1997 decreased by $32,271 as
compared to the same period in 1996. Rental revenue at Sterling Springs
decreased slightly due to a decrease in average occupancy rates. Occupancy
remained relatively stable at 99% and 98% at December 31, 1995 and March 31,
1996, respectively. However, occupancy declined to 91% at December 31, 1996 and
was 96% at March 31, 1997. Rental revenue also decreased at 1130 Sacramento due
to a decline in rental rates in 1997.
Other interest income decreased by $9,777 for the first quarter of 1997 as
compared to the first quarter of 1996. The decrease was the result of a decrease
in cash available for short-term investment in 1997. The Partnership held $2.5
million of cash and cash equivalents at March 31, 1997 as compared to $3.5
million at March 31, 1996.
Expenses:
Total expenses for the three month period ended March 31, 1997 increased by
$16,889 as compared to the same period in 1996. The increase was due to an
increase in personnel costs, repairs and maintenance, other property operating
expenses and general and administrative expenses, partially offset by a decrease
in general and administrative - affiliates, as discussed below.
Personnel costs increased by $4,878 for the three months ended March 31, 1997 as
compared to the same period in 1996. The increase was mainly due to a worker's
compensation insurance refund received for Sterling Springs Apartments in 1996;
the result of an audit performed on prior years' workers' compensation
insurance. No such refund was received in 1997.
Repairs and maintenance for the first three months of 1997 increased by $18,691
in relation to the first three months of 1996. The increase was mainly the
result of increased turnover and expenses incurred to maintain occupancy at
Sterling Springs Apartments. Occupancy at the complex increased from 91% at
December 31, 1996 to 96% at March 31, 1997.
Other property operating expenses increased by $12,644 for the three months
ended March 31, 1997 as compared to the same period in 1996. The increase was
partially due to an increase in referral fees paid in an effort to maintain
occupancy at Sterling Springs. In addition, the Partnership paid a $5,000
deductible in 1997 for a minor tenant claim settled by the Partnership's
insurance carrier.
General and administrative expenses for the first quarter of 1997 increased by
$3,340 as compared to the same period in 1996. Approximately $8,600 of costs
incurred for investor services were paid to an unrelated third party in 1997. In
the first quarter of 1996, such costs were paid to an affiliate of the General
Partner and were included in general and administrative - affiliates on the
Statements of Operations. These costs were partially offset by a decrease in
costs incurred relating to evaluation and dissemination of information regarding
an unsolicited tender offer.
<PAGE>
General and administrative expenses - affiliates decreased by $18,465 for the
three months ended March 31, 1997 as compared to the same period in 1996. The
decrease was mainly due to a decrease in overhead expenses allocated to the
Partnership by McREMI, which was partially due to investor services being
performed by an unrelated third party in 1997, as discussed above.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnership generated $45,111 through operating activities for the first
three months of 1997 as compared to $112,384 generated during the first three
months of 1996. The decrease in 1997 was primarily due to a decrease in cash
received from tenants and interest received (see discussion of decrease in
rental revenue and other interest income, above). In addition, there was an
increase in cash paid to affiliates, partially offset by a decrease in property
taxes paid, due to the timing of the payment of invoices in 1997.
The Partnership distributed $749,994 and $599,975 to the limited partners during
the three months ended March 31, 1997 and 1996, respectively.
Short-term liquidity:
At March 31, 1997, the Partnership held cash and cash equivalents of $2,499,417.
This balance provides a reasonable level of working capital for the
Partnership's immediate needs in operating its properties.
In 1997, operations of Sterling Springs Apartments and 1130 Sacramento are
expected to provide sufficient positive cash flow for normal operations.
Management will perform routine repairs and maintenance on the properties to
preserve and enhance their value and competitiveness in the market. Capital
improvements to the Partnership's properties in 1997 are expected to be funded
from operations of the properties.
For 1997, management expects that cash from operations of its properties and
principal and interest collections on the mortgage loan investments, along with
the present balance of cash and cash equivalents held, will allow the
Partnership to meet its obligations as they come due.
Long-term liquidity:
Only one property, Sterling Springs Apartments, is encumbered with mortgage
debt. The mortgage on this property is not due until 2003.
In the event that the Partnership acquires ownership of other properties through
foreclosure, the cash and cash equivalent balances presently held will provide a
source for the maintenance and improvement of the properties. Because the timing
and number of properties which may be foreclosed is uncertain, there is no
assurance that the balances presently held will be sufficient for needed capital
improvements. At present, there are no commitments nor any known needs for
improvements to the properties securing the Partnership's loans. The Partnership
has no existing lines of credit from outside sources.
<PAGE>
Another possible source of funds is the sale of the Partnership's mortgage loan
investments or properties securing the Partnership's mortgage loans. Such sales
are possibilities only, and since the Partnership does not control the
properties securing its loans, sales of those properties may occur only if
initiated by the borrower or in the event of foreclosure by the Partnership.
There is no assurance that any sales can be contracted or closed to coincide
with the Partnership's future cash needs. For the long term, the Partnership
will remain dependent on operations of the properties it owns or of the
properties securing its loans as the primary source of debt repayment, until the
properties can be sold.
The Partnership determined to evaluate market and other economic conditions to
establish the optimum time to commence an orderly liquidation of the
Partnership's assets in accordance with the terms of the Amended Partnership
Agreement. Taking such conditions as well as other pertinent information into
account, the Partnership has determined to begin orderly liquidation of all its
assets. Although there can be no assurance as to the timing of the liquidation
due to real estate market conditions, the general difficulty of disposing of
real estate, and other general economic factors, it is anticipated that such
liquidation would result in the dissolution of the Partnership followed by a
liquidating distribution to the limited partners by December 1998. In this
regard, the Partnership has placed 1130 Sacramento Condominiums on the market
for sale effective April 15, 1997. The Partnership has received an offer from a
non-affiliate to purchase one of the four condominium units for $1.6 million.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
- ------- -----------------
James F. Schofield, Gerald C. Gillett, Donna S. Gillett, Jeffrey Homburger,
Elizabeth Jung, Robert Lewis, and Warren Heller et al. v. McNeil Partners L.P.,
McNeil Investors, Inc., McNeil Real Estate Management, Inc., Robert A. McNeil,
Carole J. McNeil, McNeil Pacific Investors Fund 1972, Ltd., McNeil Real Estate
Fund IX, Ltd., McNeil Real Estate Fund X, Ltd., McNeil Real Estate Fund XI,
Ltd., McNeil Real Estate Fund XII, Ltd., McNeil Real Estate Fund XIV, Ltd.,
McNeil Real Estate Fund XV, Ltd., McNeil Real Estate Fund XX, L.P., McNeil Real
Estate Fund XXI, L.P., McNeil Real Estate Fund XXII, L.P., McNeil Real Estate
Fund XXIV, L.P., McNeil Real Estate Fund XXV, L.P., McNeil Real Estate Fund
XXVI, L.P., and McNeil Real Estate Fund XXVII, L.P., et al. - Superior Court of
the State of California for the County of Los Angeles, Case No. BC133799 (Class
and Derivative Action Complaint).
The action involves purported class and derivative actions brought by limited
partners of each of the fourteen limited partnerships that were named as nominal
defendants as listed above (the "Partnerships"). Plaintiffs allege that McNeil
Investors, Inc., its affiliate McNeil Real Estate Management, Inc. and three of
their senior officers and/or directors (collectively, the "Defendants") breached
their fiduciary duties and certain obligations under the respective Amended
Partnership Agreement. Plaintiffs allege that Defendants have rendered such
Units highly illiquid and artificially depressed the prices that are available
for Units on the resale market. Plaintiffs also allege that Defendants engaged
in a course of conduct to prevent the acquisition of Units by an affiliate of
Carl Icahn by disseminating purportedly false, misleading and inadequate
information. Plaintiffs further allege that Defendants acted to advance their
own personal interests at the expense of the Partnerships' public unit holders
by failing to sell Partnership properties and failing to make distributions to
unitholders.
<PAGE>
On December 16, 1996, the Plaintiffs filed a consolidated and amended complaint.
Plaintiffs are suing for breach of fiduciary duty, breach of contract and an
accounting, alleging, among other things, that the management fees paid to the
McNeil affiliates over the last six years are excessive, that these fees should
be reduced retroactively and that the respective Amended Partnership Agreements
governing the Partnerships are invalid.
Defendants filed a demurrer to the consolidated and amended complaint and a
motion to strike on February 14, 1997, seeking to dismiss the consolidated and
amended complaint in all respects. A hearing on Defendant's demurrer and motion
to strike was held on May 5, 1997. The Court granted Defendants' demurrer,
dismissing the consolidated and amended complaint with leave to amend.
Plaintiffs have until May 27, 1997 to file a second amended complaint, unless
otherwise agreed to by the parties.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- ------- --------------------------------
(a) Exhibits.
Exhibit
Number Document Description
------- --------------------
4. Amended and Restated Limited Partnership
Agreement dated March 30, 1992.
(Incorporated by reference to the Current
Report of the registrant on Form 8-K dated
March 30, 1992, as filed on April 10, 1992).
11. Statement regarding computation of Net
Income per Limited Partnership Unit: Net
income (loss) per limited partnership unit
is computed by dividing net income (loss)
allocated to the limited partners by the
weighted average number of limited
partnership units outstanding. Per unit
information has been computed based on
49,512 limited partnership units outstanding
in 1997 and 1996.
27. Financial Data Schedule for the quarter
ended March 31, 1997.
(b) Reports on Form 8-K. There were no reports on Form 8-K filed during
the quarter ended March 31, 1997.
<PAGE>
MCNEIL REAL ESTATE FUND XX, L.P.
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:
McNEIL REAL ESTATE FUND XX, L.P.
By: McNeil Partners, L.P., General Partner
By: McNeil Investors, Inc., General Partner
May 14, 1997 By: /s/ Ron K. Taylor
- -------------- -----------------------------------------
Date Ron K. Taylor
President and Director of McNeil
Investors, Inc.
(Principal Financial Officer)
May 14, 1997 By: /s/ Carol A. Fahs
- -------------- -----------------------------------------
Date Carol A. Fahs
Vice President of McNeil Investors, Inc.
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 2,499,417
<SECURITIES> 0
<RECEIVABLES> 77,260
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 4,120,638
<DEPRECIATION> (1,115,687)
<TOTAL-ASSETS> 12,285,891
<CURRENT-LIABILITIES> 0
<BONDS> 2,704,067
0
0
<COMMON> 0
<OTHER-SE> 9,249,762
<TOTAL-LIABILITY-AND-EQUITY> 12,285,891
<SALES> 330,636
<TOTAL-REVENUES> 450,583
<CGS> 203,327
<TOTAL-COSTS> 288,914
<OTHER-EXPENSES> 96,196
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 62,131
<INCOME-PRETAX> 3,342
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,342
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,342
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
