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 September 30, 1994
------------------
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 0-14353
-------
BALCOR REALTY INVESTORS 85-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
-------------------------------------------------------
(Exact name of registrant as specified in its charter)
Illinois 36-3244978
- - ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Balcor Plaza
4849 Golf Road, Skokie, Illinois 60077-9894
- - ---------------------------------------- -------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 677-2900
--------------
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
----- -----
BALCOR REALTY INVESTORS 85-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
BALANCE SHEETS
September 30, 1994 and December 31, 1993
(Unaudited)
ASSETS
1994 1993
-------------- --------------
Cash and cash equivalents $ 6,670,344 $ 3,129,791
Accounts and accrued interest receivable 50,851 455,823
Other assets - principally escrow deposits 1,459,325 621,838
Deferred expenses, net of accumulated
amortization of $146,651 in 1994 and
$300,956 in 1993 1,007,784 731,862
-------------- --------------
9,188,304 4,939,314
-------------- --------------
Investment in real estate:
Land 12,380,326 12,380,326
Buildings and improvements 65,940,832 65,940,832
-------------- --------------
78,321,158 78,321,158
Less accumulated depreciation 26,545,760 25,101,954
-------------- --------------
Investment in real estate, net of
accumulated depreciation 51,775,398 53,219,204
-------------- --------------
$ 60,963,702 $ 58,158,518
============== ==============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 167,925 $ 104,513
Due to affiliates 154,420 79,562
Accrued liabilities, principally real
estate taxes 673,517 369,386
Security deposits 293,959 299,099
Losses in excess of investments in joint
ventures with affiliates 884,948 524,168
Purchase price, promissory and mortgage
notes payable 57,559,118 55,919,126
-------------- --------------
Total liabilities 59,733,887 57,295,854
Partners' capital (82,697 Limited
Partnership Interests issued and
outstanding) 1,229,815 862,664
-------------- --------------
$ 60,963,702 $ 58,158,518
============== ==============
The accompanying notes are an integral part of the financial statements.
BALCOR REALTY INVESTORS 85-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the nine months ended September 30, 1994 and 1993
(Unaudited)
1994 1993
-------------- --------------
Income:
Rental and service $ 11,181,947 $ 12,002,928
Interest on short-term investments 143,758 80,981
-------------- --------------
Total income 11,325,705 12,083,909
-------------- --------------
Expenses:
Interest on purchase price, promissory
and mortgage notes payable 3,717,168 4,894,627
Depreciation 1,443,806 1,733,832
Amortization of deferred expenses 120,280 62,345
Property operating 3,730,718 3,953,949
Real estate taxes 727,330 799,884
Property management fees 555,102 594,675
Administrative 402,454 410,804
Participation in losses of joint ventures
with affiliates 261,696 128,837
-------------- --------------
Total expenses 10,958,554 12,578,953
-------------- --------------
Income (loss) before recognized gain on sale of
property and extraordinary item 367,151 (495,044)
Recognized gain on sale of property 4,194,237
-------------- --------------
Income before extraordinary item 367,151 3,699,193
Extraordinary item:
Gain on foreclosure of property 3,118,578
-------------- --------------
Net income $ 367,151 $ 6,817,771
============== ==============
Income before extraordinary item
allocated to General Partner $ 3,672 $ 36,992
============== ==============
Income before extraordinary item
allocated to Limited Partners $ 363,479 $ 3,662,201
============== ==============
Income before extraordinary item
per Limited Partnership Interest
(82,697 issued and outstanding) $ 4.40 $ 44.28
============== ==============
Extraordinary item allocated to General
Partner $ None 31,186
============== ==============
Extraordinary item allocated to Limited
Partners $ None 3,087,392
============== ==============
Extraordinary item per Limited Partnership
Interest (82,697 issued and outstanding) $ None 37.33
============== ==============
Net income allocated to General Partner $ 3,672 $ 68,178
============== ==============
Net income allocated to Limited Partners $ 363,479 $ 6,749,593
============== ==============
Net income per Limited Partnership
Interest (82,697 issued and outstanding) $ 4.40 $ 81.62
============== ==============
The accompanying notes are an integral part of the financial statements.
BALCOR REALTY INVESTORS 85-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the quarters ended September 30, 1994 and 1993
(Unaudited)
1994 1993
-------------- --------------
Income:
Rental and service $ 3,849,277 $ 3,611,616
Interest on short-term investments 70,121 30,300
-------------- --------------
Total income 3,919,398 3,641,916
-------------- --------------
Expenses:
Interest on purchase price, promissory
and mortgage notes payable 1,296,951 1,440,599
Depreciation 481,267 493,745
Amortization of deferred expenses 53,657 23,374
Property operating 1,433,705 1,351,390
Real estate taxes 244,332 247,736
Property management fees 189,979 181,308
Administrative 92,898 167,441
Participation in income (losses) of joint
ventures with affiliates 114,991 57,762
-------------- --------------
Total expenses 3,907,780 3,963,355
-------------- --------------
Income (loss) before recognized gain on sale of
property 11,618 (321,439)
Recognized gain on sale of property 4,194,237
-------------- --------------
Net income $ 11,618 $ 3,872,798
============== ==============
Net income allocated to General Partner $ 116 $ 38,728
============== ==============
Net income allocated to Limited Partners $ 11,502 $ 3,834,070
============== ==============
Net income per Limited Partnership
Interest (82,697 issued and outstanding) $ 0.14 $ 46.36
============== ==============
The accompanying notes are an integral part of the financial statements.
BALCOR REALTY INVESTORS 85-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
for the nine months ended September 30, 1994 and 1993
(Unaudited)
1994 1993
-------------- --------------
Operating activities:
Net income $ 367,151 $ 6,817,771
Adjustments to reconcile net income
to net cash provided by operating
activities:
Gain on foreclosure of property (3,118,578)
Recognized gain on sale of property (4,194,237)
Participation in losses of joint
ventures with affiliates 261,696 128,837
Depreciation of properties 1,443,806 1,733,832
Amortization of deferred expenses 120,280 62,345
Net change in:
Accounts and accrued interest
receivable 404,972 (89,135)
Other assets (289,727) (419,560)
Accounts payable 63,412 (201,786)
Due to affiliates 74,858 (3,594)
Accrued liabilities 304,131 147,160
Security deposits (5,140) (64,633)
-------------- --------------
Net cash provided by operating activities 2,745,439 798,422
-------------- --------------
Investing activities:
Capital contributions to joint ventures
with affiliates (10,372) (49,751)
Distributions from joint ventures
with affiliates 109,456 63,863
Addition to property (118,767)
Proceeds from sale of real estate 13,200,000
Payment of selling costs (99,559)
-------------- --------------
Net cash provided by investing activities 99,084 12,995,786
-------------- --------------
Financing activities:
Repayment of mortgage notes payable (10,563,000) (17,875,704)
Proceeds from issuance of mortgage note
payable 12,890,000 5,900,000
Principal payments on purchase price,
promissory and mortgage notes payable (687,008) (380,972)
Payment of deferred expenses (396,202) (191,938)
Funding of improvement escrows (547,760)
-------------- --------------
Net cash used in or provided by financing
activities 696,030 (12,548,614)
-------------- --------------
Net change in cash and cash equivalents 3,540,553 1,245,594
Cash and cash equivalents at beginning
of period 3,129,791 2,602,593
-------------- --------------
Cash and cash equivalents at end of period $ 6,670,344 $ 3,848,187
============== ==============
The accompanying notes are an integral part of the financial statements.
BALCOR REALTY INVESTORS 85-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
1. Accounting Policies:
In the opinion of management, all adjustments necessary for a fair presentation
have been made to the accompanying statements for the nine months and quarter
ended September 30, 1994, and all such adjustments are of a normal and
recurring nature.
2. Interest Expense:
During the nine months ended September 30, 1994 and 1993, the Partnership
incurred interest expense on purchase price, promissory and mortgage notes
payable to unaffiliated parties of $3,717,168 and $4,894,627 and paid interest
expense of $3,717,168 and $4,908,298 respectively.
3. Transactions with Affiliates:
Fees and expenses paid and payable by the Partnership to affiliates during the
nine months and quarter ended September 30, 1994 are:
Paid
--------------------
Nine Months Quarter Payable
----------- -------- ---------
Property management fees $550,542 $186,968 $64,072
Reimbursement of expenses to
the General Partner, at cost:
Accounting 38,778 24,114 21,274
Data processing 23,003 11,289 28,706
Investor communications 12,525 7,789 5,900
Legal 6,230 3,874 5,288
Other 12,962 8,060 7,587
Portfolio management 38,800 24,128 21,593
4. Loan Refinancings:
(a) In July 1994, the Partnership completed the refinancing of the $3,822,000
first mortgage loan collateralized by the Heather Ridge Apartments, and
obtained a new $5,200,000 first mortgage loan from an unaffiliated lender. The
new loan bears interest at a rate of 8.95% with monthly principal and interest
payments of $41,653 due through maturity, August 1, 2001, at which time the
remaining principal amount will be due. A portion of the net proceeds received
from the refinancing was used to fund real estate tax and insurance escrow
deposits of $50,530, capital improvement escrows of $112,425, and $155,352 in
refinancing fees.
(b) In July 1994, the Partnership completed the refinancing of the $6,741,000
first mortgage loan collateralized by the Forest Ridge - Phase I apartment
complex, and obtained a new $7,690,000 first mortgage loan from an unaffiliated
lender. The new loan bears interest at a rate of 8.96% with monthly principal
and interest payments of $61,671 due through maturity, August 1, 2001, at
which time the remaining principal amount will be due. A portion of the net
proceeds received from the refinancing was used to fund real estate tax and
insurance escrow deposits of $121,690, capital improvement escrows of
$435,335, and $240,850 in refinancing fees.
5. Subsequent Event:
In October 1994, the Partnership commenced distributions and paid $413,485
($5.00 per Interest) to the holders of Limited Partnership Interests for the
third quarter of 1994.
BALCOR REALTY INVESTORS 85-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS
Balcor Realty Investors 85 - Series I A Real Estate Limited Partnership (the
"Partnership") was formed in 1983 to invest in and operate income-producing
real property. The Partnership raised $82,697,000 through the sale of Limited
Partnership Interests and utilized these proceeds to acquire ten real property
investments and minority joint venture interests in three additional
properties. In prior years, the Partnership sold two of the properties and
relinquished one of the properties through foreclosure. The Partnership
continues to operate the remaining seven real property investments and three
minority joint venture interests.
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 1993 for a more complete understanding of
the Partnership's financial position.
Operations
- - ----------
Summary of Operations
- - ---------------------
As a result of the foreclosure of Suncrest Village Apartments in May 1993 and
the sale of Sahara Palms Apartments in July 1993, the Partnership recognized
gains which resulted in significantly higher net income in 1993 as compared to
1994. The Partnership generated net income during the nine months and quarter
ended September 30, 1994 as compared to a loss before recognized gain on sale
of property and extraordinary item during the same periods in 1993 as a result
of improved operations at certain of the Partnership's properties and the
disposition of Sahara Palms Apartments, which was operating at a loss. Further
discussion of the Partnership's operations is summarized below.
1994 Compared to 1993
- - ---------------------
As a result of the Suncrest Village foreclosure in May 1993 and the Sahara
Palms sale in July 1993, rental and service income, interest expense,
depreciation expense, property operating expense and property management fees
decreased for the nine months ended September 30, 1994 as compared to the same
period in 1993. In addition, the sale of Sahara Palms resulted in a decrease in
real estate tax expense during the nine months ended September 30, 1994 as
compared to the same period in 1993.
Increased rental and/or occupancy rates at all of the Partnership's seven
remaining properties partially offset the decrease in rental and service income
due to the 1993 property dispositions during the nine months ended September
30, 1994 and caused an increase in rental and service income for the quarter
ended September 30, 1994 as compared to the same period in 1993.
The increase in cash flow from the Partnership's properties, the proceeds from
the July 1993 sale of Sahara Palms, and the net proceeds received in connection
with the refinancing of the underlying mortgage loan on Heather Ridge
Apartments caused the Partnership's cash balances to increase. This, together
with higher interest rates, resulted in an increase in interest income on
short-term investments during the nine months and quarter ended September 30,
1994 when compared to the same periods in 1993.
In addition to the decrease resulting from the 1993 property dispositions,
interest expense also decreased during the nine months and quarter ended
September 30, 1994 as compared to the same periods in 1993 due to the
refinancing of the first mortgage loan collateralized by the Timberlake - Phase
I Apartments in October 1993, as well as the decrease in the interest rate on
the first mortgage loan collateralized by the Templeton Park Apartments,
effective December 1993. The decrease in interest expense was partially offset
by increased interest expense for the Forest Ridge - Phase I and Heather Ridge
apartment complexes, due to higher principal balances resulting from the
refinancings during the third quarter of 1994.
As a result of the refinancings on the Forest Ridge - Phase I and Heather Ridge
apartment complexes in July, 1994 the remaining deferred expenses related to
the previous mortgage loans were written off. This, along with the amortization
of expenses incurred in connection with refinancings on the Forestwood and
Timberlake - Phase I apartment complexes in 1993 caused amortization of
deferred expenses to increase for the nine months and quarter ended September
30, 1994 as compared to the same periods in 1993.
Property operating expense decreased during the nine months ended September 30,
1994 as compared to the same period in 1993 primarily as a result of the 1993
property dispositions. However, increases in carpet replacement at Forest Ridge
- - - Phase I, Forestwood, Templeton Park and Willowbend apartment complexes as
well as higher insurance expense at six of the Partnership's properties
partially offset the decrease for the nine months and caused an increase in
property operating expense for the quarter ended September 30, 1994 as compared
to the same period in 1993.
Primarily as a result of decreased legal fees, administrative expenses
decreased for the nine months and quarter ended September 30, 1994 as compared
to the same periods in 1993. This decrease was partially offset by increased
portfolio management, data processing and accounting fees.
The Pinebrook apartment complex is owned by a joint venture consisting of the
Partnership and an affiliate. The joint venture recognized other income during
1993 in connection with the purchase of a note investment relating to the
Pinebrook apartment complex. In 1994, the joint venture paid default interest
expense on the third and fourth mortgage loans and incurred legal fees in
connection with the bankruptcy plan of reorganization. Seabrook Apartments
which is also owned by a joint venture with an affiliate incurred additional
plumbing repairs during the third quarter of 1994. These are the primary
reasons for the increase in the participation in losses of joint ventures with
affiliates during the nine months and quarter ended September 30, 1994 as
compared to the same periods in 1993. These increases were partially offset by
lower interest expense and increased rental and service income at the North
Hill Apartments, which is also owned by a joint venture with an affiliate.
Liquidity and Capital Resources
- - -------------------------------
The cash or near cash position of the Partnership increased by approximately
$3,541,000 as of September 30, 1994 as compared to December 31, 1993. The
Partnership's cash flow provided by operating activities in the first nine
months of 1994 was generated primarily from the Partnership's properties, and
was partially offset by the payment of administrative expenses. The Partnership
received cash flow from investing activities which consisted of a net
distribution from its joint ventures with affiliates. The Partnership also
received cash flow from financing activities which consisted of net proceeds
from the refinancing of the underlying mortgage loans on both the Forest
Ridge - Phase I and Heather Ridge apartment complexes. A portion of these
proceeds were used for principal payments on purchase price, promissory and
mortgage notes payable and the payment of deferred expenses incurred in
connection with the two refinancings.
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 to be
significant if it exceeds $250,000 annually or 20% of the property's rental and
service income. During the nine months ended September 30, 1994 and 1993, all
seven of the Partnership's properties generated positive cash flow. Of the
three properties in which the Partnership holds minority joint venture
interests, the North Hill apartment complex generated positive cash flow during
the nine months ended September 30, 1994 and 1993. The Seabrook and Pinebrook
apartment complexes generated marginal cash flow deficits during the nine
months ended September 30, 1994 as compared to positive cash flow for the same
period in 1993 primarily due to plumbing repairs at the Seabrook apartment
complex and default interest expense and legal fees incurred in connection with
the bankruptcy plan of reorganization at the Pinebrook apartment complex.
In July 1994, the Partnership completed the refinancing of the $3,822,000 first
mortgage loan collateralized by the Heather Ridge Apartments, and obtained a
new $5,200,000 first mortgage loan from an unaffiliated lender. The new loan
bears interest at a rate of 8.95% with monthly principal and interest payments
of $41,653 due through maturity, August 1, 2001, at which time the remaining
principal amount will be due.
In July 1994, the Partnership completed the refinancing of the $6,741,000 first
mortgage loan collateralized by the Forest Ridge - Phase I apartment complex,
and obtained a new $7,690,000 first mortgage loan from an unaffiliated lender.
The new loan bears interest at a rate of 8.96% with monthly principal and
interest payments of $61,671 due through maturity, August 1, 2001, at which
time the remaining principal amount will be due.
While the cash flow of certain of the Partnership's remaining properties has
improved, the General Partner continues to pursue a number of actions aimed at
further improving the cash flow of the Partnership's properties including
refinancing of mortgage loans, improving property operating performance, and
seeking rent increases where market conditions allow. Despite recent
improvements in the local economies and rental markets where certain of the
Partnership's properties are located, the General Partner believes that
continued ownership of many of the properties is in the best interest of the
Partnership in order to maximize potential returns to Limited Partners. As a
result, the Partnership will continue to own these properties for longer than
the holding period for the assets originally described in the prospectus.
Each of the Partnership's properties is owned through the use of third-party
mortgage loan financing and, therefore, the Partnership is subject to the
financial obligations required by such loans. During 1995, the $7,787,000
mortgage loan collateralized by the Boulder Springs apartment complex matures.
As a result of the downturn experienced by the real estate industry over the
last few years, many banks, savings and loans and other lending institutions
have tightened mortgage lending criteria and are generally willing to advance
less funds with respect to a property than many lenders were willing to advance
during the 1980's. As a result, in certain instances it may be difficult for
the Partnership to refinance a property in an amount sufficient to retire in
full the current mortgage financing with respect to the property. In the event
negotiations with the existing lender for a loan modification or with new
lenders for a refinancing are unsuccessful, the Partnership may sell the
collateral property or other properties to satisfy an obligation or may
relinquish title to the collateral property in satisfaction of the outstanding
mortgage loan balance.
In July 1993, the purchase money wrap-around mortgage note collateralized by
the Pinebrook apartment complex, in which the Partnership holds a minority
joint venture interest, was scheduled to mature. Therefore, in November 1992,
the joint venture suspended debt service payments and began negotiations with
the lender for a discounted repayment of the purchase money wrap-around
mortgage note. In response, the lender filed foreclosure proceedings and in
December 1992, the joint venture filed for protection under the U.S. Bankruptcy
Code. In January 1994, the bankruptcy court approved the Partnership's plan of
reorganization, and in May 1994, the plan became effective. Pursuant to the
plan, the joint venture must sell the property before May 2, 1996. If the
property is not sold by then it will be put up for auction within 90 days.
Currently, all cash flow generated by the property is being used to pay debt
service on the mortgage loans.
North Hill Apartments is owned by a joint venture ("Joint Venture") consisting
of the Partnership and an affiliate. Mutual Benefit Life Insurance Company
("Mutual Benefit") was the guarantor of the $18,700,000 tax-exempt revenue
bonds which funded the first mortgage financing ("Senior Loan") collateralized
by the property. In July 1991, the New Jersey Commissioner of Insurance assumed
control of Mutual Benefit due to its insolvency and, as a result, the bonds
were in technical default. In October 1993, the Joint Venture and the trustee
for the bondholders (the "Trustee") released Mutual Benefit from its
obligations as guarantor under the bonds. The Senior Loan remains in technical
default. The Trustee and the Joint Venture have entered into an agreement (the
"Agreement") in which the Trustee agreed to forebear from commencing
foreclosure proceedings, until December 1, 1994. Under the Agreement, the Joint
Venture will continue to make interest only debt service payments on the Senior
Loan at the contract interest rate of 6.75% per annum. Effective with the
February 1, 1994 payment, in lieu of the 1% fee to the Trustee, the Joint
Venture is paying the Trustee 50% of the monthly net cash flow from the
property after payment of operating expenses, including debt service, which is
being held in an escrow account to be applied to amounts due under the Senior
Loan upon a sale of the property or refinancing of the Senior Loan. The Joint
Venture is currently pursuing a refinancing of the Senior Loan and has received
a loan commitment. The transaction is expected to be completed in 1994. In the
event the refinancing is not completed by December 1, 1994, the Joint Venture
will seek an extension of the forbearance agreement. If the proposed
refinancing is unsuccessful, the Joint Venture may negotiate with new lenders
for a refinancing or sell the collateral property to satisfy the outstanding
mortgage amount.
During October 1994, the Partnership made a distribution of $413,485 ($5.00 per
Interest) to the holders of Limited Partnership Interests for the third quarter
of 1994. The General Partner expects to continue quarterly distributions to
Limited Partners based on the current performance of the Partnership's
properties. However, the level of future distributions, if available, will
depend on cash flow from the Partnership's remaining properties, the successful
refinancing of certain mortgage loans and proceeds from future property sales,
as to all of which there can be no assurances.
On November 4, 1994, The Balcor Company completed the sale of the assets of
Allegiance Realty Group, Inc. to an unaffiliated company, Insignia Allegiance
Management, Inc. ("Insignia"), which is based in Greenville, South Carolina. As
a result of this transaction, Insignia has assumed the management of the
Partnership's properties. This transaction is not expected to result in any
material change to the property management fees paid by the Partnership.
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.
BALCOR REALTY INVESTORS 85-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
- - -----------------------------------------
(a) Exhibits:
(4) The Subscription Agreement as set forth as Exhibit 4.1 to Amendment No. 1
to Registrant's Registration Statement on Form S-11 dated November 29, 1984
(Registration No. 2-92777) and Form of Confirmation regarding Interests in the
Partnership as set forth as Exhibit 4.2 to the Registrant's Report on Form 10-Q
for the quarter ended June 30, 1992 (Commission File No. 0-14353) are
incorporated herein by reference.
(27) Financial Data Schedule of the Registrant for the nine month period ending
September 30, 1994 is attached hereto.
(b) Reports on Form 8-K: No reports were filed on Form 8-K during the quarter
ended September 30, 1994.
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 REALTY INVESTORS 85-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
By: /s/Thomas E. Meador
--------------------------------
Thomas E. Meador
President and Chief Executive Officer (Principal
Executive Officer) of Balcor Partners-XVI, the
General Partner
By: /s/Allan Wood
--------------------------------
Allan Wood
Executive Vice President, and Chief Accounting
and Financial Officer (Principal Accounting and
Financial Officer) of Balcor Partners-XVI, the
General Partner
Date: November 11, 1994
-------------------------
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<OTHER-SE> 1230
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