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Previous: UNISYS CORP, DEFA14A, 1996-04-09 |
Next: ROTO ROOTER INC, DEF 14A, 1996-04-09 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------------
SCHEDULE 14D-1
TENDER OFFER STATEMENT PURSUANT TO SECTION 14(d)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)
-----------------------------
BALCOR REALTY INVESTORS 85--SERIES I,
A REAL ESTATE LIMITED PARTNERSHIP
(Name of Subject Company)
METROPOLITAN ACQUISITION VII, L.L.C.
MAP VII ACQUISITION CORPORATION
INSIGNIA FINANCIAL GROUP, INC.
(Bidders)
LIMITED PARTNERSHIP INTERESTS
(Title of Class of Securities)
NONE
(Cusip Number of Class of Securities)
-----------------------------
JOHN K. LINES, ESQ.
GENERAL COUNSEL AND SECRETARY
INSIGNIA FINANCIAL GROUP, INC.
ONE INSIGNIA FINANCIAL PLAZA
GREENVILLE, SOUTH CAROLINA 29602
(803) 239-1675
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications on Behalf of Bidders)
-----------------------------
COPY TO:
JOHN A. HEALY, ESQ.
ROBERT E. KING, JR., ESQ.
ROGERS & WELLS
200 PARK AVENUE
NEW YORK, NEW YORK 10166
(212) 878-8000
-----------------------------
Index to Exhibits Located at Page 4
<PAGE> 2
This Amendment No. 2 amends and supplements the Tender Offer Statement
on Schedule 14D-1 originally filed with the Commission on March 11, 1996, as
amended by Amendment No. 1 filed with the Commission on April 2, 1996 (the
"Schedule") by Metropolitan Acquisition VII, L.L.C. (the "Purchaser"), MAP VII
Acquisition Corporation and Insignia Financial Group, Inc., relating to the
tender offer of the Purchaser to purchase up to 24,809 of the outstanding
limited partnership interests ("Interests") of Balcor Realty Investors 85 --
Series I, A Real Estate Limited Partnership, an Illinois limited partnership,
at $265.00 per Interest, net to the seller in cash, upon the terms and subject
to the conditions set forth in the Offer to Purchase dated March 11, 1996 and
the related Assignment of Partnership Interest (copies of which were filed as
Exhibits (a)(2) and (a)(3), respectively, to the Schedule). Unless the context
otherwise requires, capitalized terms used but not defined in this Amendment
No. 2 have the meanings ascribed to them in the Schedule.
Item 10 of the Schedule is hereby amended and supplemented to include
the following information.
ITEM 10. ADDITIONAL INFORMATION.
(f) The Offer has been extended to 5:00 p.m., New York time, on
Friday, April 12, 1996. On Monday, April 8, 1996, the Purchaser issued a press
release announcing such extension and reporting that approximately 2,272
Interests had been tendered pursuant to the Offer as of the close of business
on April 8, 1996. A copy of the press release has been filed as Exhibit (a)(5)
to this Amendment No. 2 and is incorporated herein by reference in its
entirety.
Item 11 of the Schedule is hereby supplemented to include the exhibits
listed below.
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS.
(a)(5) Text of press release issued by the Purchaser on April 8, 1996.
(f)(1) Excerpts from the report, dated November 27, 1995, of Alex. Brown &
Sons Incorporated.
2
<PAGE> 3
SIGNATURES
After due inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: April 9, 1996
METROPOLITAN ACQUISITION VII, L.L.C.
By: MAP VII ACQUISITION CORPORATION,
its managing member
By: /s/ JEFFREY L. GOLDBERG
-----------------------------------
Jeffrey L. Goldberg
Vice President
MAP VII ACQUISITION CORPORATION
By: /s/ JEFFREY L. GOLDBERG
-----------------------------------
Jeffrey L. Goldberg
Vice President
INSIGNIA FINANCIAL GROUP, INC.
By: /s/ FRANK M. GARRISON
-----------------------------------
Frank M. Garrison
Executive Managing Director
3
<PAGE> 4
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<S> <C>
(a)(5) Text of press release issued by the Purchaser on April 8, 1996.
(f)(1) Excerpts from the report, dated November 27, 1995, of Alex. Brown & Sons Incorporated.
</TABLE>
4
<PAGE> 1
EXHIBIT 99.(a)(5)
METROPOLITAN ACQUISITION VII, L.L.C.
One Insignia Financial Plaza
Greenville, SC 29602
FOR IMMEDIATE RELEASE
INSIGNIA AFFILIATE EXTENDS TENDER OFFERS FOR LIMITED
PARTNERSHIP INTERESTS IN EIGHT BALCOR LIMITED PARTNERSHIPS
GREENVILLE, SOUTH CAROLINA, April 8, 1996 - Metropolitan Acquisition
VII, L.L.C. today announced that it has extended the expiration date of its
outstanding tender offers for limited partnership interests in the following
partnerships: Balcor Realty Investors Ltd. -- 82, Balcor Realty Investors --
83, Balcor Realty Investors -- 84, Balcor Realty Investors 85 -- Series I,
Balcor Realty Investors 85 -- Series III, Balcor Realty Investors 86 -- Series
I, Balcor Equity Properties Ltd. -- VIII, and Balcor Equity Properties -- XII.
The expiration date for each tender offer has been extended to 5:00 p.m., New
York time, on Friday, April 12, 1996. The offers were previously scheduled to
expire at midnight on Friday, April 5, 1996.
Metropolitan reported that as of the close of business on April 5,
1996, approximately 2,867 interests had been tendered pursuant to the BRI 82
offer, approximately 3,163 interests had been tendered pursuant to the BRI 83
offer, approximately 7,064 interests had been tendered pursuant to the BRI 84
offer, approximately 2,272 interests had been tendered pursuant to the BRI
85-I offer, approximately 2,362 interests had been tendered pursuant to the
BRI 85-III offer, approximately 1,452 interests had been tendered pursuant to
the BRI 86-I offer, approximately 1,362 interests had been tendered pursuant to
the BEP VIII offer, and approximately 2,346 interests had been tendered
pursuant to the BEP XII offer.
Metropolitan is a newly-formed Delaware limited liability company. The
managing member of Metropolitan is a wholly-owned subsidiary of Insignia
Financial Group, Inc. (NYSE: IFS). For further information, please contact
either The Herman Group, Inc. at (800) 647-2543 or Beacon Hill Partners, Inc. at
(800) 253-3814, which are acting as Information Agents for the offers.
# # #
<PAGE> 1
BALCOR
BRI-85
LIMITED PARTNERSHIP VALUATION SUMMARY
<TABLE>
<CAPTION>
BALANCE SHEET RECAP WORKING CAPITAL AT SALE DATE
------------------- ----------------------------
($000)
4TH Qrt 1995 Balcor
09/30/95 1995 Projection
--------- ------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Current Assets:
Cash & Equivalents 3,699 Cash Flow Activity:
Restr Investment 0 Op cash flow thru sale date 578 2,311 use 1/4 of Balcor's estimate for 1995
Escrow Deposits 1,739 Sale proceeds none in 4th quarter
Accounts Receivable 17 Refinance proceeds none in 4th quarter
Prepaid Expenses 270 Collateral activity incl in beg working capital
Other 0 Other cash receipt/pmt incl in beg working capital
------ Distributions (1,861) use actual 4th quarter distribution
5,725 --------------------
(1,283) 2,311
Current Liabilities:
Accounts Payable 156
Due to Affiliates 25 9/30/95 Working Capital 4,580
Income Liabilities 700 Adjust for Joint Venture Interest 32 25% of North Hill escrow
Security Deposits 264 Sales Date working Capital 3,328
Other 0 -------
------
1,145
------
Net Working Capital 4,580
======
Mortgage N/P-Affiliate 0
Mortgage N/P 56,660
<CAPTION>
LIQUIDATION VALUE
-----------------
Cap Sales Cost of Debt Net Sales BRI-85 PrePmet Net Sales BRI-85
Property Rate Value Sale Payoff Proceeds Share Penalty Proceeds Share
------------------------------------------------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Forest Ridge I 10.00 10,382 (208) (7,618) 2,556 2,556 (1,120) 1,436 1,436
Boulder Springs 9.50 13,676 (274) (8,109) 5,293 5,293 (731) 4,582 4,562
Forestwood 12.00 7,938 (159) (5,795) 1,984 1,984 (290) 1,695 1,695
Heather ridge 10.00 7,961 (159) (5,151) 2,651 2,651 (754) 1,897 1,897
North Hill 10.25 21,199 (424) (16,753) 4,022 1,006 (2,300) 1,722 431
Seabrook 9.75 5,133 (103) (5,200) 0 0 0 0 0
Templeton Park 10.00 22,960 (459) (13,568) 8,933 8,933 0 8,933 8,933
Timberlake I 9.50 16,622 (332) (11,477) 4,812 4,812 (1,224) 3,588 3,588
Willowbend 9.50 9,005 (180) (5,802) 3,023 3,023 (221) 2,801 2,801
----- -------- ------ -------- --------- ------- ------- ---------- ------
Totals 114,875 (2,297) (79,473) 33,274 30,257 (6,641) 26,633 25,342
Working Capital Balance 3,328 3,328
------- ------
Total Liquidation Proceeds 33,586 28,670
GP Share Proceeds 0 0% 0
LP Share Proceeds 33,586 100% 28,670
Per Unit ($) 406 82,697 Units 347
% of Original Capital 41% $1,000 original unit cost 35%
</TABLE>
<PAGE> 2
BALCOR
BRI-85
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
-------------------- ----------------------
<S> <C> <C> <C>
Property Name Forest Ridge I Date of Sale 12/31/95
Location Arlington, TX Repl Res per unit 400
Type Apartments Cap Rate 10.00
Constructed 1984 Income Growth 3.0%
Units 332 Expense Growth 3.0%
Ownership % 100%
12/95 Debt Balance 7,618 Asset Mgr. Beth Goldstein
Prepayment Penalty 1,120 mly Brkr Contact Ron Belanger
Property Tax Rate 2.58%
<CAPTION>
OPERATING RESULTS
-----------------
($000's) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Rental Income 1,923 2,051 2,143 1,699 2,039 2,100
Service Income 18 17 14 12 14 15
Other Income 30 35 31 37 44 46
----- ----- ----- ----- ----- -----
Total Income 1,971 2,103 2,188 1,748 2,097 2,160
Income Growth 6.7% 4.0% -4.1% 3.0%
per unit
--------------
Operating Expenses 661 663 695 542 650 670 2,018
Expense Growth 0.3% 4.6% 65 -6.4% 3.0%
Property Taxes 218 217 229 219 263 268 607
Insurance 22 68 50 64 50 52 155
----- ----- ----- ----- ----- -----
Total Expenses 901 948 974 890 963 989
----- ----- ----- ----- ----- -----
Net Operating Income 1,070 1,155 1,214 858 1,134 1,171
Capital Expenditures 123 185 223 260
--------------
Value
Replacement Reserve 133 W/Prepmt
NOI for cap rate valuation 1,038 Penalty
--------------
Valuation Conclusion 10,382 10,382
Cost of Sale (2%) (208) (208)
Prepayment Penalty (1,120)
Mortgage Payoff (7,618) (7,618)
-------------- --------------
Net Sales Proceeds 2.556 1,436
-------------- --------------
--------------------------------------------------------------------------- --------------
BRI-85 Share of Proceeds 2,556 1,436
--------------------------------------------------------------------------- --------------
COMP ANALYSIS
-------------
Sale Per
Property # Units Date Price Unit Comments
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Forest Ridge I 332 Dec-95 10,382 31
Celery Stalk 410 Jun-94 14,475,000 35,305
Montfort Oaks 276 May-94 8,400,000 30,435
River Oaks 188 Aug-94 4,800,000 25,532
Cascades 120 Mar-94 1,770,000 14,750
</TABLE>
<PAGE> 3
BALCOR
BRI-85
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
-------------------- ----------------------
<S> <C> <C> <C>
Property Name Boulder Springs Date of Sale 12/31/95
Location Richmond, VA Repl Res per unit 400
Type Apartments Cap Rate 9.50
Constructed 1986 Income Growth 3.0%
Units 284 Expense Growth 3.0%
Ownership % 100%
12/95 Debt Balance 8,109 Asset Mgr. Reid Reynolds
Prepayment Penalty 731 mly Brkr Contact Carlton Moody 804-288-8351
Property Tax Rate 1.09%
<CAPTION>
OPERATING RESULTS
-----------------
($000's) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Rental Income 1,940 1,988 2,059 1,706 2,047 2,109
Service Income 21 14 15 9 11 11
Other Income 14 14 14 11 13 14
----- ----- ----- ----- ----- -----
Total Income 1,975 2,016 2,088 1,726 2,071 2,133
Income Growth 2.1% 3.8% -0.8% 3.0%
per unit
--------------
Operating Expenses 501 488 527 414 497 512 1,802
Expense Growth -2.8% 8.0% -5.7% 3.0%
Property Taxes 113 113 117 0 0 149 625
Insurance 23 67 58 68 58 60 210
----- ----- ----- ----- ----- -----
Total Expenses 637 668 702 482 555 721
----- ----- ----- ----- ----- -----
Net Operating Income 1,338 1,348 1,386 1,244 1,516 1,413
Capital Expenditures 172 154 138 97
--------------
Value
Replacement Reserve 114 W/Prepmt
NOI for cap rate valuation 1,299 Penalty
--------------
Valuation Conclusion 13,676 13,676
Cost of Sale (274) (274)
Prepayment Penalty (731)
Mortgage Payoff (8,109) (8,109)
-------------- --------------
Net Sales Proceeds 5,293 4,562
-------------- --------------
--------------------------------------------------------------------------- --------------
BRI-85 Share of Proceeds 5,293 4,562
--------------------------------------------------------------------------- --------------
COMP ANALYSIS
-------------
Sale Per
Property # Units Date Price Unit
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Boulder Springs 284 Dec-95 13,676 48
Lakeridge Square 156 Oct-95 5,925 38 inferior to BS
no other comps available
</TABLE>
<PAGE> 4
BALCOR
BRI-85
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
-------------------- ----------------------
<S> <C> <C> <C>
Property Name Forestwood Date of Sale 12/31/95
Location Baton Rouge, LA Repl Res per unit 400
Type Apartments Cap Rate 12.00
Constructed 1985 Income Growth 3.0%
Units 272 Expense Growth 3.0%
Ownership % 100%
12/95 Debt Balance 5,795 Asset Mgr. Don Price
Prepayment Penalty 290 5% Brkr Contact Whitney Watts
Property Tax Rate 1.44%
<CAPTION>
OPERATING RESULTS
-----------------
($000's) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Rental Income 1,484 1,556 1,596 1,275 1,530 1,576
Service Income 6 7 10 4 5 5
Other Income 49 39 42 39 47 48
----- ----- ----- ----- ----- -----
Total Income 1,539 1,602 1,650 1,318 1,582 1,629
Income Growth 4.1% 3.0% -4.1% 3.0%
per unit
--------------
Operating Expenses 407 401 434 337 404 417 1,531
Expense Growth -1.5% 8.2% -6.8% 3.0%
Property Taxes 67 75 79 2 2 114 420
Insurance 17 75 61 59 61 37 135
----- ----- ----- ----- ----- -----
Total Expenses 491 551 574 398 468 568
----- ----- ----- ----- ----- -----
Net Operating Income 1,048 1,051 1,076 920 1,114 1,061
Capital Expenditures 329 (96) 83 67
--------------
Value
Replacement Reserve 109 W/Prepmt
NOI for cap rate valuation 953 Penalty
--------------
Valuation Conclusion 7,938 7,938
Cost of Sale (2%) (159) (159)
Prepayment Penalty (290)
Mortgage Payoff (5,795) (5,795)
-------------- --------------
Net Sales Proceeds 1,984 1,695
-------------- --------------
--------------------------------------------------------------------------- --------------
BRI-85 Share of Proceeds 1,984 1,695
--------------------------------------------------------------------------- --------------
COMP ANALYSIS
-------------
Sale Per
Property # Units Date Price Unit Comments
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Forestwood 272 Dec-95 7,938 29
Varn Villa 148 Nov-92 3,262,000 22,041
Tiger Plaza 300 May-95 5,540,000 18,467
Jefferxon Oaks 102 Jun-94 2,675,000 26,225
Chateau Dijon 298 Dec-92 6,000,000 20,134
</TABLE>
SALES COMP DIFFICULT TO FIND
<PAGE> 5
BALCOR
BRI-85
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
-------------------- ----------------------
<S> <C> <C> <C>
Property Name Heather Ridge Date of Sale 12/31/95
Location Oklahoma City, OK Repl Res per unit 400
Type Apartments Cap Rate 10.00
Constructed 1984 Income Growth 3.0%
Units 356 Expense Growth 3.0%
Ownership % 100%
12/95 Debt Balance 5,151 Asset Mgr. Reid Reynolds
Prepayment Penalty 754 mly Brkr Contact Bill Cole
Property Tax Rate 1.18%
<CAPTION>
OPERATING RESULTS
-----------------
($000's) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Rental Income 1,406 1,523 1,584 1,303 1,564 1,811
Service Income 32 45 41 27 32 33
Other Income 48 50 49 39 47 48
----- ----- ----- ----- ----- -----
Total Income 1,486 1,618 1,674 1,369 1,643 1,692
Income Growth 8.9% 3.5% -1.9% 3.0%
per unit
--------------
Operating Expenses 590 614 603 487 584 602
Expense Growth 4.1% -1.6% -3.1% 3.0% 1,091
Property Taxes 73 53 52 28 34 94
Insurance 25 69 56 69 56 58 264
----- ----- ----- ----- ----- -----
Total Expenses 688 736 711 584 674 764 162
----- ----- ----- ----- ----- -----
Net Operating Income 798 882 963 785 969 938
Capital Expenditures 436 (45) 128 96
--------------
Value
Replacement Reserve 142 W/Prepmt
NOI for cap rate valuation 796 Penalty
--------------
Valuation Conclusion 7,961 7,961
Cost of Sale (2%) (159) (159)
Prepayment Penalty (754)
Mortgage Payoff (5,151) (5,151)
-------------- --------------
Net Sales Proceeds 2,651 1,897
-------------- --------------
---------------------------------------------------------------------------- --------------
BRI-84 Share of Proceeds 2,651 1,897
---------------------------------------------------------------------------- --------------
COMP ANALYSIS
-------------
Sale Per
Property # Units Date Price Unit
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Heather Ridge 356 Dec-95 7,961 22
Quail Ridge 628 Jul-95 13,900,000 22,134
The Gables 200 Aug-95 6,800,000 34,000
Forest Pointe 157 Sept-95 4,800,000 30,573
Copperfield 262 Jul-95 6,400,000 24,427
Woodscape I 222 Jul-95 5,900,000 28,577
Hunters Ridge 212 Jul-95 5,000,000 23,585
</TABLE>
<PAGE> 6
BALCOR
BRI-85
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
-------------------- ----------------------
<S> <C> <C> <C>
Property Name North Hill Date of Sale 12/31/95
Location Atlanta, GA Repl Res per unit 450
Type Apartments Cap Rate 10.25
Constructed 1985 Income Growth 3.0%
Units 420 Expense Growth 3.0%
Ownership % 25%
12/95 Debt Balance 16,753 Asset Mgr. Michael Becker 706-317-4305
Prepayment Penalty 2,300 mly Brkr Contact Kelly T. Linsley
Property Tax Rate 1.66%
404-399-6279
<CAPTION>
OPERATING RESULTS
-----------------
($000's) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Rental Income 2,996 3,167 3,257 2,847 3,416 3,519
Service Income 23 28 30 24 29 30
Other Income 42 52 52 48 58 59
----- ------ ----- ----- ----- -----
Total Income 3,061 3,247 3,339 2,919 3,503 3,608
Income Growth 6.1% 2.8% 4.9% 3.0%
per unit
--------------
Operating Expenses 716 756 770 650 780 803 1,913
Expense Growth 5.6% 1.9% 1.3% 3.0%
Property Taxes 289 285 275 141 169 352 838
Insurance 40 107 88 101 88 91 216
----- ------ ----- ----- ----- -----
Total Expenses 1,045 1,148 1,133 892 1,037 1,246
----- ------ ----- ----- ----- -----
Net Operating Income 2,016 2,099 2,206 2,027 2,466 2,362
Capital Expenditures 198 231 336 188
--------------
Value
Replacement Reserve 189 W/Prepmt
NOI for cap rate valuation 2,173 Penalty
--------------
Valuation Conclusion 21,199 21,199
Cost of Sale (2%) (424) (424)
Prepayment Penalty (2,300)
Mortgage Payoff (16,753) (16,753)
-------------- --------------
Net Sales Proceeds 4,022 1,722
-------------- --------------
--------------------------------------------------------------------------- --------------
BRI-85 Share of Proceeds 1,006 431
--------------------------------------------------------------------------- --------------
COMP ANALYSIS
-------------
Sale Per
Property # Units Date Price Unit
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
North Hill 420 Dec-95 21,199 50
Gentry Walk 227 Mar-95 11,975 53
Winters Creek 200 Sept-95 7,535 37
</TABLE>
<PAGE> 7
BALCOR
BRI-85
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
-------------------- ----------------------
<S> <C> <C> <C>
Property Name Seabrook Date of Sale 12/31/95
Location Winter Park, FL Repl Res per unit 400
Type Apartments Cap Rate 9.75
Constructed 1985 Income Growth 3.0%
Units 200 Expense Growth 3.0%
Ownership % 15%
12/95 Debt Balance 5,200 Asset Mgr. Michael Becker
Prepayment Penalty none Brkr Contac Larry Ochab 407-898-3388
Property Tax Rate 2,03%
<CAPTION>
OPERATING RESULTS
-----------------
($000's) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Rental Income 1,146 1,139 1,188 956 1,147 1,182
Service Income 16 19 15 16 19 20
Other Income 24 27 26 26 31 32
----- ----- ----- --- ----- -----
Total Income 1,186 1,185 1,231 998 1,198 1,234
Income Growth -0.1% 3.9% -2.7% 3.0%
per unit
--------------
Operating Expenses 408 461 434 404 485 499 2,497
Expense Growth 13.0% -5.9% 11.7% 3.0%
Property Taxes 261 128 126 0 0 104 521
Insurance 14 54 48 51 48 49 247
----- ----- ----- --- ----- -----
Total Expenses 683 643 608 455 533 653
----- ----- ----- --- ----- -----
Net Operating Income 503 542 623 543 665 581
Capital Expenditures 200 263 250 119
--------------
Value
Replacement Reserve 80 W/Prepmt
NOI for cap rate valuation 501 Penalty
--------------
Valuation Conclusion 5,133 5,133
Cost of Sale (2%) (103) (103)
Prepayment Penalty 0
Mortgage Payoff (5,200) (5,200)
-------------- --------------
Net Sales Proceeds 0 0
-------------- --------------
--------------------------------------------------------------------------- --------------
BRI-85 Share of Proceeds 0 0
--------------------------------------------------------------------------- --------------
COMP ANALYSIS
-------------
Sale Per
Property # Units Date Price Unit
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Seabrook 200 Dec-95 5,133 26
Auvers Village 480 Jul-93 21,000 44
Mission Bay 304 Sep-93 16,500 54
Bishop Park 324 Oct-93 16,000 49
Polos East 308 Aug-93 14,300 46
Woodbridge Village 168 Jul-93 5,400 32
</TABLE>
<PAGE> 8
BALCOR
BRI-85
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
-------------------- ----------------------
<S> <C> <C> <C>
Property Name Templeton Park Date of Sale 12/31/95
Location Colorado Springs, CO Repl Res per unit 400
Type Apartments Cap Rate 10.00
Constructed 1985 Income Growth 3.0%
Units 496 Expense Growth 3.0%
Ownership % 100%
12/95 Debt Balance 13,568 Asset Mgr. Gregg Handrich 708-317-4335
Prepayment Penalty * Brkr Contac Doug Carter
Property Tax Rate 0.84% Palmer/McAllister Co., Inc.
719-630-2222 direct 719-630-2673
* lender partic incl in debt bal
<CAPTION>
OPERATING RESULTS
-----------------
($000's) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Rental Income 2,633 3,076 3,300 2,765 3,318 3,418
Service Income 62 92 81 67 80 83
Other Income 57 52 48 39 47 48
------ ----- ----- ----- ----- -----
Total Income 2,752 3,220 3,429 2,871 3,445 3,549
Income Growth 17.0% 8.5% 0.5% 3.0%
per unit
--------------
Operating Expenses 712 770 802 631 757 780 1,572
Expense Growth 8.1% 4.2% -5.6% 3.0%
Property Taxes 85 82 85 82 98 193 389
Insurance 35 98 79 90 79 81 184
------ ----- ----- ----- ----- -----
Total Expenses 832 950 966 803 935 1,054
------ ----- ----- ----- ----- -----
Net Operating Income 1,920 2,270 2,463 2,068 2,511 2,494
Capital Expenditures 358 172 199 140
--------------
Value
Replacement Reserve 198 W/Prepmt
NOI for cap rate valuation 2,296 Penalty
--------------
Valuation Conclusion 22,960 22,960
Cost of Sale (2%) (459) (459)
Prepayment Penalty 0
Mortgage Payoff (13,568) (13,568)
-------------- --------------
Net Sales Proceeds 8,933 8,933
-------------- --------------
--------------------------------------------------------------------------- --------------
BRI-85 Share of Proceeds 8,933 8,933
--------------------------------------------------------------------------- --------------
COMP ANALYSIS
-------------
Sale Per
Property # Units Date Price Unit
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Templeton Park 496 Dec-95 22,960 46
Briarglen 220 1995 9,750 44
Beverly Place 256 1995 10,850 43 Good Comp.
Parkside 268 1995 11,560 43
Rockrimmon Terrace 216 1995 8,000 37
</TABLE>
<PAGE> 9
BALCOR
BRI-85
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
-------------------- ----------------------
<S> <C> <C> <C>
Property Name Timberlake I Date of Sale 12/31/95
Location Altamonte Spring, FL Repl Res per unit 400
Type Apartments Cap Rate 9.50
Constructed 1985 Income Growth 3.0%
Units 480 Expense Growth 3.0%
Ownership % 100%
12/95 Debt Balance 11,477 Asset Mgr. Michael Becker
Prepayment Penalty 1,224 mly Brkr Contac Larry Ochab 407-898-3388
Property Tax Rate 2.11%
<CAPTION>
OPERATING RESULTS
-----------------
($000's) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Rental Income 2,776 2,892 2,965 2,433 2,920 3,007
Service Income 20 21 18 10 12 12
Other Income 71 66 55 57 68 70
----- ----- ----- ----- ----- -----
Total Income 2,867 2,979 3,038 2,500 3,000 3,090
Income Growth 3.9% 2.0% -1.3% 3.0%
per unit
--------------
Operating Expenses 838 848 883 690 828 853 1,777
Expense Growth 1.2% 4.1% -8.2% 3.0%
Property Taxes 275 272 286 0 0 351 731
Insurance 32 138 112 105 112 115 240
----- ----- ----- ----- ----- -----
Total Expenses 1,145 1,258 1,261 795 940 1,319
----- ----- ----- ----- ----- -----
Net Operating Income 1,722 1,721 1,757 1,705 2,060 1,771
Capital Expenditures 217 213 382 312
--------------
Value
Replacement Reserve 192 W/Prepmt
NOI for cap rate valuation 1,579 Penalty
--------------
Valuation Conclusion 16,622 16,622
Cost of Sale (2%) (332) (332)
Prepayment Penalty (1,224)
Mortgage Payoff (11,477) (11,477)
-------------- --------------
Net Sales Proceeds 4,812 3,588
-------------- --------------
--------------------------------------------------------------------------- --------------
BRI-85 Share of Proceeds 4,812 3,588
--------------------------------------------------------------------------- --------------
COMP ANALYSIS
-------------
Sale Per
Property # Units Date Price Unit
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Timberlake I 480 Dec-95 16,622 35
Seville on the Green 170 Feb-94 6,140 36
Atlamonte Bay Club 224 Mar-94 7,500 33
Lakeside North 360 Apr-94 12,443 35
Thunder Hollow 160 May-94 5,472 34
Chatham Harbor 324 Jun-94 11,595 36
</TABLE>
<PAGE> 10
BALCOR
BRI-85
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
-------------------- ----------------------
<S> <C> <C> <C>
Property Name Willowbend Date of Sale 12/31/95
Location Chesterfield, MO Repl Res per unit 400
Type Apartments Cap Rate 9.50
Constructed 1986 Income Growth 2.5%
Units 208 Expense Growth 3.0%
Ownership % 100%
12/95 Debt Balance 5,802 Asset Mgr. Greg Handrich
Prepayment Penalty 221 * Brkr Contac Ted Levis 314-862-7100
Property Tax Rate 1.17%
* gr of 1% or mly
<CAPTION>
OPERATING RESULTS
-----------------
($000's) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Rental Income 1,317 1,387 1,440 1,198 1,438 1,474
Service Income 19 19 15 16 19 20
Other Income 11 15 16 16 19 20
----- ----- ----- ----- ----- -----
Total Income 1,347 1,421 1,471 1,230 1,476 1,513
Income Growth 3.5% 3.5% 0.3% 2.5%
per unit
--------------
Operating Expenses 354 392 409 350 420 433 2,080
Expense Growth 10.7% 4.3% 2.7% 3.0%
Property Taxes 182 183 203 0 0 106 507
Insurance 17 43 35 39 35 36 173
----- ----- ----- ----- ----- -----
Total Expenses 553 618 647 389 455 574
----- ----- ----- ----- ----- -----
Net Operating Income 794 803 824 841 1,021 939
Capital Expenditures 119 123 186 156
--------------
Value
Replacement Reserve 83 W/Prepmt
NOI for cap rate valuation 855 Penalty
--------------
Valuation Conclusion 9,005 9,005
Cost of Sale (2%) (180) (180)
Prepayment Penalty (221)
Mortgage Payoff (5,802) (5,802)
-------------- --------------
Net Sales Proceeds 3,023 2,801
-------------- --------------
--------------------------------------------------------------------------- --------------
BRI-85 Share of Proceeds 3,023 2,801
--------------------------------------------------------------------------- --------------
COMP ANALYSIS
-------------
Sale Per
Property # Units Date Price Unit
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Willowbend 208 Dec-95 9,005 43
Watson Village 162 Jun-95 6,500 40 nice property, full amenities, B+ location
Peachtree Village Nov-95 50 same submarket but much newer
The Knolls 112 Aug-94 4,750 42 large units, older property
</TABLE>
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