FORM 10-KSB--ANNUAL OR TRANSITIONAL REPORT UNDER
SECTION 13 OR 15(D)
FORM 10-KSB
[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [No Fee Required]
For the fiscal year ended December 31, 1996
or
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [No Fee Required]
For the transition period.........to.........
Commission file number 0-14099
CONSOLIDATED CAPITAL PROPERTIES VI
(Name of small business issuer in its charter)
California 94-2940204
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Insignia Financial Plaza, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices) (Zip Code)
Issuer's telephone number (864) 239-1000
Securities registered under Section 12(b) of the Exchange Act:
None
Securities registered under Section 12(g) of the Exchange Act:
Units of Limited Partnership Interest
(Title of class)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [X]
State issuer's revenues for its most recent fiscal year: $3,314,000.
State the aggregate market value of the voting partnership interests held by
non-affiliates computed by reference to the price at which the partnership
interests were sold, or the average bid and asked prices of such partnership
interests, as of December 31, 1995: Market value information for the
Registrant's partnership interests is not available. Should a trading market
develop for these interests, it is management's belief that such trading would
not exceed $25,000,000.
PART I
ITEM 1. DESCRIPTION OF BUSINESS
Consolidated Capital Properties VI (the "Partnership" or "Registrant") was
organized on May 23, 1984, as a limited partnership under the California Uniform
Limited Partnership Act. On December 7, 1984, the Partnership registered with
the Securities and Exchange Commission ("SEC") under the Securities Act of 1933
(File No. 2-93900) and commenced a public offering for sale of $50 million of
Units. The Units represent equity interests in the Partnership and entitle the
holders thereof to participate in certain allocations and distributions of the
Partnership. The Partnership subsequently filed a Form 8-A Registration
Statement with the SEC and registered under the Securities Exchange Act of 1934
(File No. 0-14099) on December 23, 1985. The sale of Units closed on December 6,
1985, with 181,808 Units sold at $250 each, or gross proceeds of approximately
$45.5 million to the Partnership.
By the end of fiscal 1987, approximately 51% of the proceeds raised was invested
in seven properties and a 75% interest in a joint venture with an affiliated
partnership which acquired one property. Of the remaining 49%, 11% was required
for organizational and offering expenses, sales commissions and acquisition
fees, and 38% was retained in Partnership reserves for project improvements and
working capital as required by the Partnership Agreement (herein so called).
The General Partner of the Partnership is ConCap Equities, Inc., a Delaware
corporation (the "General Partner" or "CEI"). The principal place of business
for the Partnership and for the General Partner is One Insignia Financial Plaza,
Greenville, South Carolina 29602.
The Partnership's primary business and only industry segment is real estate
related operations. The Partnership was formed to acquire, own, operate and
ultimately dispose of income-producing real properties for the benefit of its
partners. At December 31, 1996, the Partnership owns two properties as
described in "Item 2 - Description of Property." Previously, the Partnership
disposed of six properties.
Reserves, consisting of cash and cash equivalents and investments totalling
approximately $1,871,000 are less than the reserve requirements of approximately
$2,266,000 at December 31, 1996. The Partnership intends to replenish the
working capital reserve from cash flow from operations after consideration of
any capital improvement needs of the properties. The working capital
requirement must be met prior to any consideration for distributions to the
partners. See "Item 6 - Management's Discussion and Analysis or Plan of
Operations" for a discussion of the Partnership's liquidity and capital
resources.
The real estate business is highly competitive. The Registrant's real property
investments are subject to competition from similar types of properties in the
vicinities in which they are located and the Partnership is not a significant
factor in its industry. In addition, various limited partnerships have been
formed by related parties to engage in business which may be competitive with
the Registrant.
The Registrant has no employees. Management and administrative services are
performed by affiliates of Insignia Financial Group, Inc. ("Insignia"), an
affiliate of the General Partner. The property manager is responsible for the
day-to-day operations of each property. The General Partner has also selected
an affiliate of Insignia to provide real estate advisory and asset management
services to the Partnership. As advisor, such affiliate provides all
partnership accounting and administrative services, investment management, and
supervisory services over property management and leasing. For a further
discussion of property and partnership management, see "Item 12".
Upon the Partnership's formation in 1984, Consolidated Capital Equities
Corporation ("CCEC"), a Colorado corporation, was the corporate general partner
and Consolidated Capital Group II ("CCG"), a California general partnership, was
the non-corporate general partner. In 1988, through a series of transactions,
Southmark Corporation ("Southmark") acquired controlling interest in CCEC. In
December 1988, CCEC filed for reorganization under Chapter 11 of the United
States Bankruptcy Code. In 1990, as part of CCEC's reorganization plan, CEI
acquired CCEC's general partner interests in the Partnership and in 15 other
affiliated public limited partnerships (the "Affiliated Partnerships") and CEI
replaced CCEC as managing general partner in all 16 partnerships. The selection
of CEI as the sole managing general partner was approved by a majority of the
limited partners in the Partnership and in each of the Affiliated Partnerships
pursuant to a solicitation of the Limited Partnerships dated August 10, 1990.
As part of this solicitation, the Limited Partners also approved an amendment to
the Partnership Agreement to limited changes of control of the Partnership and
approved conversion of the general partner interest of the non-corporate general
partner, CCG, to that of a special limited partner ("Special Limited Partner")
without voting and other rights of a limited partner except for the economic
interest previously held as a general partner. Pursuant to an amendment to the
Partnership Agreement, the non-corporate general partner interest of CCG was
converted to that of a Special Limited Partner and CEI became the sole general
partner of the Partnership on December 31, 1991.
All of CEI's outstanding stock is owned by GII Realty, Inc. In December 1994,
the parent of GII Realty, Inc., entered into a transaction (the "Insignia
Transaction") in which, an affiliate of Insignia, acquired an option
(exercisable in whole or in part from time to time) to purchase all of the stock
of GII Realty, Inc. and, pursuant to a partial exercise of such option, acquired
50.5% of that stock. As a part of the Insignia Transaction, the Insignia
affiliate also acquired all of the outstanding stock of Partnership Services,
Inc., an asset management entity and Insignia acquired all of the outstanding
stock of Coventry Properties, Inc., a property management entity. In addition,
confidentiality, non-competition, and standstill arrangements were entered into
between certain of the parties. Those arrangements, among other things,
prohibit GII Realty's former sole shareholder from purchasing Partnership Units
for a period of three years. On October 24, 1995, the Insignia affiliate
exercised the remaining portion of its option to purchase all of the remaining
outstanding capital stock of GII Realty, Inc.
ITEM 2. DESCRIPTION OF PROPERTY
The Partnership originally acquired seven properties of which two were sold, two
were conveyed to lenders, two of three phases in a property were conveyed to the
lender and the remaining phase was sold, and one property was foreclosed on, in
fiscal years prior to 1994. The Partnership also originally acquired a 75%
interest in a real estate joint venture. In April 1994, the Partnership
purchased the remaining 25% interest in the real estate joint venture. As of
December 31, 1996, the Partnership owns two properties as noted below:
Date of
Property Purchase Type of Ownership Use
Celina Plaza Apartments 08/07/85 Fee ownership subject Apartment -
El Paso, Texas to first, second and 289 units
third mortgages.
Colonyof Springdale Apartments 02/20/87 Fee ownership subject Apartment -
Springdale, Ohio to first mortgage. 261 units
SCHEDULE OF PROPERTIES:
(dollar amounts in thousands)
Carrying Accumulated Federal
Property Value Depreciation Rate Method Tax Basis
Celina Plaza $ 6,926 $3,849 5-19 years S/L $2,872
Colony of Springdale 9,738 3,301 5-30 years S/L 5,764
Totals $16,664 $7,150 $8,636
See "Note A" of the Financial Statements included in "Item 7" for a description
of the Partnership's depreciation policy.
SCHEDULE OF MORTGAGES:
(dollar amounts in thousands)
Principal Principal
Balance At Stated Balance
December 31, Interest Maturity Due At
Property 1996 Rate Date Maturity
Celina Plaza
1st mortgage $ 1,696 8.75% 07/97 $1,587
2nd mortgage 52 8.75% 07/97 49
3rd mortgage 4,025 (1) 07/97 4,025
Colony of Springdale
1st mortgage 4,468 9.50% 05/01 4,152
10,241 $9,813
Mortgage discounts (102)
$10,139
(1) The net wrap-mortgage loan collateralized by Celina Plaza Apartments
requires quarterly contingent interest payments of 50% of Celina Plaza's
cash flow as defined in the Promissory Note. Contingent interest payments
of approximately $74,000 were made in 1996, and approximately $42,000 were
made in 1995. This loan is evidenced by an all-inclusive note which wraps
around the 1st and 2nd mortgages but is presented above as net of these
loans.
SCHEDULE OF RENTAL RATES AND OCCUPANCY:
Average Annual Average
Rental Rates Occupancy
Property 1996 1995 1996 1995
(per unit) (per unit)
Celina Plaza $6,305 $6,294 89% 90%
Colony of Springdale $6,270 $6,124 91% 88%
As noted under "Item 1. Description of Business," the real estate industry is
highly competitive. All of the properties of the Partnership are subject to
competition from other residential apartment complexes in the area. The General
Partner believes that all of the properties are adequately insured. The
properties' lease terms are for one year or less and no tenant leases 10% or
more of the available rental space.
Capital improvements made in the fourth quarter of 1995 at the Colony of
Springdale increased the curb appeal of the property thereby enhancing the
property's ability to attract higher quality tenants. Also, stricter tenant
qualification procedures have improved the tenant base and positively impacted
occupancy. Ongoing property improvements at both locations, resulting in
improved consumer appeal, continue to positively impact rental rates.
SCHEDULE OF REAL ESTATE TAXES AND RATES:
(Dollar amounts in thousands)
Real estate taxes and rates in 1996 for each property were:
1996 1996
Taxes Rate
Celina Plaza $168 2.8%
Colony of Springdale 112 4.4%
ITEM 3. LEGAL PROCEEDINGS
The Registrant is unaware of any pending or outstanding litigation that is not
of a routine nature. The General Partner of the Registrant believes that all
such pending or outstanding litigation will be resolved without a material
adverse effect upon the business, financial condition, or operations of the
Partnership.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
During the fourth quarter of the year ended December 31, 1996, no matters were
submitted to a vote of the Unitholders through the solicitation of proxies or
otherwise.
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED SECURITY HOLDER
MATTERS
(A) No established public trading market for Partnership Units exists nor is
one expected to develop.
(B) Title of Class Number of Unit Holders of Record
Limited Partnership Units 3,771 as of December 31, 1996
(C) There were no cash distributions to the Limited Partners during the year
ended December 31, 1996. In March 1995, the General Partner declared and
paid distributions, attributable to cash flow from operations, totalling
approximately $275,000 to the partners. See "Item 6 - Management's
Discussion and Analysis or Plan of Operations."
ITEM 6.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
Results of Operations
The Partnership realized a net loss of approximately $553,000 for the year ended
December 31, 1996, compared to a net loss of approximately $750,000 for the year
ended December 31, 1995. The decreased net loss is due primarily to decreased
general and administrative and maintenance expenses, partially offset by a
decrease in other income and increased operating expenses.
Other income decreased due to the non-recurring nature of dividends received on
the Partnership's investment in Southmark Preferred Stock during the second
quarter of 1995, and due to reduced interest income resulting from lower cash
balances available for investment. The increase in property operating expenses
is due primarily to higher concessions being granted to attract tenants to the
Celina Plaza Apartments in El Paso. Administrative expenses decreased due to
prior year amounts being unusually high due to legal costs associated with the
Partnership's required responses to various tender offers in 1995 and
approximately $53,000 of expense reimbursements related to the efforts of the
Dallas partnership administration staff during the transition period in 1995.
Administrative expenses were also higher for the year ended December 31, 1995,
due to a special management fee of approximately $24,000 related to the
distribution made to the limited partners in March 1995. Maintenance expenses
decreased as a result of 1995 amounts being unusually high due to exterior
painting done at both of the Partnership's properties during the third and
fourth quarters of 1995 in efforts to improve the curb appeal of the
Partnership's properties.
Included in maintenance expenses is approximately $75,000 of major repairs and
maintenance comprised primarily of major landscaping, exterior building
improvements, window coverings and parking lot repairs for the year ended
December 31, 1996.
As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of each of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expenses. As part of
this plan, the General Partner attempts to protect the Partnership from the
burden of inflation-related increases in expenses by increasing rents and
maintaining a high overall occupancy level. However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.
Liquidity and Capital Resources
As of December 31, 1996, the Partnership had unrestricted cash of approximately
$1,478,000 as compared to approximately $1,311,000 at December 31, 1995. Net
cash provided by operating activities increased primarily due to the receipt of
an insurance refund of approximately $177,000 and the decreased administrative
costs and maintenance expenses discussed above partially offset by increased
operating expenses. Net cash provided by investing activities decreased as a
result of the Partnership investing in shorter term cash equivalents during 1996
rather than longer term securities. Net cash used in financing activities
decreased due to the lack of partner distributions during 1996.
The Partnership is required to maintain working capital reserves for
contingencies of not less than 5% of Net Invested Capital as defined in the
Partnership Agreement. In the event expenditures are made from these reserves,
operating revenue shall be allocated to such reserves to the extent necessary to
maintain the foregoing level. Reserves, consisting of cash and cash equivalents,
tenant security deposits and investments totalling approximately $1,871,000 are
less than the reserve requirement of approximately $2,266,000 at December 31,
1996. The Partnership intends to replenish the working capital reserve
from cash flow from operations after consideration of any capital improvement
needs of the properties. The working capital requirement must be met prior to
any consideration for distributions to the partners.
The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the property to adequately maintain the physical assets
and meet other operating needs of the Partnership. Such assets are currently
thought to be sufficient for any near-term needs of the Partnership. The
mortgage indebtedness of approximately $10,139,000, net of discounts, matures at
various times with balloon payments due at maturity, at which time the
properties will either be refinanced or sold. The mortgage indebtedness of
approximately $5,773,000 secured by Celina Plaza, matures in July of 1997. The
General Partner is currently in negotiations with the existing lender to obtain
a work-out on these mortgages and is also exploring the possibility of
refinancing this debt; however, there is no assurance that these negotiations
will be successful. Future cash distributions will depend on the levels of net
cash generated from operations, capital expenditure requirements, property sales
and the availability of cash reserves. No cash distributions were made in 1996.
During the year of 1995, distributions of approximately $275,000 were declared
and paid.
ITEM 7. FINANCIAL STATEMENTS
CONSOLIDATED CAPITAL PROPERTIES VI
LIST OF FINANCIAL STATEMENTS
Report of Independent Auditors
Consolidated Balance Sheet - December 31, 1996
Consolidated Statements of Operations - Years ended December 31, 1996
and 1995
Consolidated Statements of Changes in Partners- Capital (Deficit) - Years
ended December 31, 1996 and 1995
Consolidated Statements of Cash Flows - Years ended December 31, 1996 and
1995
Notes to Consolidated Financial Statements
Report of Ernst & Young LLP, Independent Auditors
The Partners
Consolidated Capital Properties VI
We have audited the accompanying consolidated balance sheet of Consolidated
Capital Properties VI as of December 31, 1996, and the related consolidated
statements of operations, changes in partners' capital (deficit) and cash flows
for each of the two years in the period ended December 31, 1996. These
financial statements are the responsibility of the Partnership's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
the Partnership's management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of
Consolidated Capital Properties VI as of December 31, 1996, and the consolidated
results of its operations and its cash flows for each of the two years in the
period ended December 31, 1996, in conformity with generally accepted accounting
principles.
/s/ ERNST & YOUNG LLP
Greenville, South Carolina
January 30, 1997
CONSOLIDATED CAPITAL PROPERTIES VI
CONSOLIDATED BALANCE SHEET
December 31, 1996
(in thousands, except unit data)
Assets
Cash and cash equivalents:
Unrestricted $ 1,478
Restricted - tenant security deposits 88
Investments 305
Accounts receivable 29
Escrows for taxes and insurance 108
Restricted escrows 68
Other assets 131
Investment properties:
Land $ 1,652
Buildings and personal property 15,012
16,664
Less accumulated depreciation (7,150) 9,514
$11,721
Liabilities and Partners' Capital (Deficit)
Liabilities
Accounts payable $ 203
Tenant security deposits 88
Accrued taxes 113
Other liabilities 228
Mortgage notes payable 10,139
Partners' Capital (Deficit)
General partner $ (6)
Special limited partners (61)
Limited partners (181,288 units issued
and outstanding) 1,017 950
$11,721
See Accompanying Notes to Consolidated Financial Statements
CONSOLIDATED CAPITAL PROPERTIES VI
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except unit data)
Years Ended December 31,
1996 1995
Revenues:
Rental income $3,068 $3,037
Other income 246 324
Total revenues 3,314 3,361
Expenses:
Operations 1,267 1,101
General and administrative 179 460
Maintenance 540 726
Depreciation 713 676
Interest 890 874
Property tax 278 274
Total expenses 3,867 4,111
Net loss $ (553) $ (750)
Net loss allocated to general partners (0.2%) $ (1) $ (2)
Net loss allocated to limited partners (99.8%) (552) (748)
$ (553) $ (750)
Net loss per limited partnership unit $(3.04) $(4.13)
See Accompanying Notes to Consolidated Financial Statements
CONSOLIDATED CAPITAL PROPERTIES VI
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Years Ended December 31, 1996 and 1995
(in thousands, except unit data)
<TABLE>
<CAPTION>
Limited Special
Partnership General Limited Limited
Units Partner Partners Partners Total
<S> <C> <C> <C> <C> <C>
Original capital contributions 181,808 $ 1 $ -- $45,452 $45,453
Partners' capital (deficit)
at December 31, 1994 181,300 $ (2) $ (68) $ 2,598 $ 2,528
Abandonment of limited
partnership units (12) -- -- -- --
Distributions paid -- (1) (11) (263) (275)
Amortization of timing
difference -- -- 9 (9) --
Net loss for the year ended
December 31, 1995 -- (2) -- (748) (750)
Partners' capital (deficit)
at December 31, 1995 181,288 (5) (70) 1,578 1,503
Amortization of timing
difference -- -- 9 (9) --
Net loss for the year ended
December 31, 1996 -- (1) -- (552) (553)
Partners' capital (deficit)
at December 31, 1996 181,288 $ (6) $ (61) $ 1,017 $ 950
<FN>
See Accompanying Notes to Consolidated Financial Statements
</TABLE>
CONSOLIDATED CAPITAL PROPERTIES VI
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
Years Ended December 31,
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (553) $ (750)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation 713 676
Amortization of loan costs and discounts 229 228
Loss on disposition of property 31 --
Change in accounts:
Restricted cash 7 (95)
Accounts receivable (19) (10)
Escrows for taxes and insurance 47 116
Prepaid and other assets 194 (133)
Accounts payable 27 143
Tenant security deposit liabilities (7) (7)
Accrued taxes 1 (148)
Other liabilities (56) 99
Net cash provided by operating activities 614 119
Cash flows from investing activities:
Property improvements and replacements (404) (483)
Purchase of investments -- (5,713)
Proceeds from sale of investments 85 7,519
Deposits to restricted escrows (93) (80)
Receipts from restricted escrows 163 --
Net cash (used in) provided by
investing activities (249) 1,243
Cash flows from financing activities:
Payments on mortgage notes payable (198) (190)
Distributions to partners -- (275)
Net cash used in
financing activities (198) (465)
Net increase in cash and cash equivalents 167 897
Cash and cash equivalents at beginning of period 1,311 414
Cash and cash equivalents at end of period $ 1,478 $ 1,311
Supplemental disclosure of cash flow information:
Cash paid for interest $ 661 $ 614
<FN>
See Accompanying Notes to Consolidated Financial Statements
</TABLE>
CONSOLIDATED CAPITAL PROPERTIES VI
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1996
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Consolidated Capital Properties VI, a California limited partnership (the
"Partnership" or "Registrant"), was formed on May 23, 1984, to acquire and
operate commercial and residential properties. As of December 31, 1996, the
Partnership owns two residential properties located in or near major urban areas
in the United States.
At the time of the Partnership's formation, Consolidated Capital Equities
Corporation ("CCEC"), a Colorado corporation, was the corporate general partner
and Consolidated Capital Group II ("CCG"), a California general partnership, was
the non-corporate general partner. In 1988, through a series of transactions,
Southmark Corporation ("Southmark") acquired controlling interest in CCEC. In
December 1988, CCEC filed for reorganization under Chapter 11 of the United
States Bankruptcy Code. In 1990, as part of CCEC's reorganization plan, ConCap
Equities, Inc. (the "General Partner" or "CEI") acquired CCEC's general partner
interests in the Partnership and in 15 other affiliated public limited
partnerships (the "Affiliated Partnerships") and CEI replaced CCEC as managing
general partner in all 16 partnerships. The selection of CEI as the sole
managing general partner was approved by a majority of the Limited Partners in
the Partnership and in each of the Affiliated Partnerships pursuant to a
solicitation of the Limited Partners dated August 10, 1990. As part of this
solicitation, the Limited Partners also approved an amendment to the Partnership
Agreement to limit changes of control of the Partnership.
All of CEI's outstanding stock is owned by GII Realty, Inc. In December 1994,
the parent of GII Realty, Inc., entered into a transaction (the "Insignia
Transaction") in which, an affiliate of Insignia, acquired an option
(exercisable in whole or in part from time to time) to purchase all of the stock
of GII Realty, Inc. and, pursuant to a partial exercise of such option, acquired
50.5% of that stock. As a part of the Insignia Transaction, the Insignia
affiliate also acquired all of the outstanding stock of Partnership Services,
Inc., an asset management entity and Insignia acquired all of the outstanding
stock of Coventry Properties, Inc., a property management entity. In addition,
confidentiality, non-competition, and standstill arrangements were entered into
between certain of the parties. Those arrangements, among other things,
prohibit GII Realty's former sole shareholder from purchasing Partnership Units
for a period of three years. On October 24, 1995, the Insignia affiliate
exercised the remaining portion of its option to purchase all of the remaining
outstanding capital stock of GII Realty, Inc.
On December 31, 1991, the non-corporate general partner interest of CCG was
converted to that of a Special Limited Partner, as more fully described in "Note
E".
Consolidation
The Partnership's financial statements include the accounts of Colony of
Springdale Associates, Ltd. ("Colony Associates"), which holds fee title to the
Colony of Springdale Apartments. The results of its operations are included in
the Partnership's financial statements. All intercompany transactions between
the Partnership and Colony Associates have been eliminated.
Investment Properties
Prior to the fourth quarter of 1995, investment properties were carried at the
lower of cost or estimated fair value, which was determined using the higher of
the property's non-recourse debt amount, when applicable, or the net operating
income of the investment property capitalized at a rate deemed reasonable for
the type of property. During the fourth quarter of 1995 the Partnership adopted
"FASB Statement No. 121, Accounting for the Impairment of Long-Lived Assets and
for Long-Lived Assets to Be Disposed Of", which requires impairment losses to be
recorded on long-lived assets used in operations when indicators of impairment
are present and the undiscounted cash flows estimated to be generated by those
assets are less than the assets' carrying amount. The impairment loss is
measured by comparing the fair value of the asset to its carrying amount. The
effect of adoption was not material.
Depreciation
Buildings and improvements are depreciated using the straight-line method over
the estimated useful lives of the assets, ranging from 5 to 30 years.
Cash and cash equivalents
Unrestricted - Unrestricted cash includes cash on hand and in banks, demand
deposits, money market funds, and certificates of deposit with original
maturities of ninety days or less. At certain times the amount of cash
deposited at a bank may exceed the limit on insured deposits.
Restricted cash - tenant security deposits - The Partnership requires security
deposits from new lessees for the duration of the lease with such deposits being
considered restricted cash. Deposits are refunded when the tenant vacates,
provided the tenant has not damaged its space and is current on its rental
payments.
Reclassifications
Certain reclassifications have been made to the 1995 information to conform to
the 1996 presentation.
Investments
In 1994, the Partnership adopted "Statements of Financial Accounting Standards
No. 115, Accounting for Certain Investments in Debt and Equity Securities."
Investments, consisting primarily of U.S. Treasury notes with original
maturities more than ninety days, are considered to be held-to-maturity
securities. As the Investments' fair value approximate their cost, any
unrealized gains or losses are immaterial and therefore have not been recorded
in the accompanying financial statements. The cost of Investments sold is
determined using the specific identification method.
The Investments mature as follows (dollar amounts in thousands):
Description Cost Maturity
U.S. Treasury Notes $ 298 February 1998
Equity Securities 7 N/A
$ 305
Fair Value
In 1995, the Partnership implemented "Statement of Financial Accounting
Standards No. 107, Disclosure about Fair Value of Financial Instruments," which
requires disclosure of fair value information about financial instruments for
which it is practicable to estimate that value. The carrying amount of the
Partnership's cash and cash equivalents approximates fair value due to short-
term maturities. The Partnership estimates the fair value of its fixed rate
mortgages by discounted cash flow analysis, based on estimated borrowing rates
currently available to the Partnership.
Discounts on Notes Payable
Discounts on notes payable are amortized using the straight-line method over the
remaining terms of the related notes.
Rental Income
The Partnership leases its residential property under short-term operating
leases. Lease terms are generally one year or less in duration.
Allocation of Net Income and Net Loss
The Partnership Agreement, as amended and as described more fully in "Note E",
provides for net income and net losses for both financial and tax reporting
purposes to be allocated 99.8% to the Limited Partners and .2% to the General
Partner.
Advertising Costs
Advertising costs of approximately $68,000 in 1996, and approximately $62,000 in
1995 were charged to expenses as incurred and are included in operating
expenses.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
NOTE B - RELATED PARTY TRANSACTIONS
The Partnership has no employees and is dependent on the General Partner and
affiliates of Insignia for the management and administration of all of the
Partnership activities, as provided for in the Partnership agreement.
The Partnership has paid property management fees based upon collected gross
rental revenues for property management services in each of the twelve months
ended December 31, 1996 and 1995. Property management fees of approximately
$160,000 and $159,000 were paid to affiliates of the General Partner for the
twelve months ended December 31, 1996 and 1995, respectively. These fees are
included in operating expenses.
The Limited Partnership Agreement ("Partnership Agreement") provides for a
special management fee equal to 9% of the total distributions made to the
limited partners to be paid to the General Partner for executive and
administrative management services. The Partnership paid approximately $24,000
to affiliates of the General Partner during 1995 under this provision of the
Partnership Agreement. No such fees were paid or accrued in 1996.
The Partnership Agreement also provides for reimbursement to the General Partner
and its affiliates for costs incurred in connection with the administration of
Partnership activities. Reimbursements for services of affiliates of
approximately $119,000 and $123,000 were paid to the General Partner and
affiliates for the twelve months ended December 31, 1996 and 1995, respectively.
In July 1995, the Partnership began insuring its properties under a master
policy through an agency and insurer unaffiliated with the General Partner. An
affiliate of the General Partner acquired, in the acquisition of a business,
certain financial obligations from an insurance agency which was later acquired
by the agent who placed the current year's master policy. The current agent
assumed the financial obligations to the affiliate of the General Partner who
receives payment on these obligations from the agent. The amount of the
Partnership's insurance premiums accruing to the benefit of the affiliate of the
General Partner by virtue of the agent's obligations is not significant.
NOTE C - COMMITMENT
The Partnership is required to maintain working capital reserves for
contingencies of not less than 5% of Net Invested Capital as defined in the
Partnership Agreement. In the event expenditures are made from these reserves,
operating revenue shall be allocated to such reserves to the extent necessary to
maintain the foregoing level. Reserves, consisting of cash and cash equivalents,
tenant security deposits and investments totalling approximately $1,871,000 are
less than the reserve requirement of approximately $2,266,000 at December 31,
1996. The Partnership intends to replenish the working capital reserve from
cash flow from operations after consideration of any capital improvement needs
of the properties. The working capital requirement must be met prior to any
consideration for distributions to the partners.
NOTE D - CHANGE IN STATUS OF NON-CORPORATE GENERAL PARTNER
During the year ended December 31, 1991, the Partnership Agreement was amended
to convert the General Partner interests held by the non-corporate General
Partner, Consolidated Capital Group II ("CCG"), to that of special limited
partners ("Special Limited Partners"). The Special Limited Partners do not have
a vote and do not have any of the other rights of a Limited Partner except the
right to inspect the Partnership's books and records; however, the Special
Limited Partners will retain the economic interest in the Partnership which they
previously owned as general partner.
ConCap Equities, Inc. ("CEI") became the sole general partner of the Partnership
effective December 31, 1991. In connection with CCG's conversion, a special
allocation of gross income was made to the Special Limited Partners in order to
eliminate its tax basis negative capital account.
After the conversion, the various Special Limited Partners transferred portions
of their interests to CEI so that CEI now holds a .2% interest in all allocable
items of income, loss and distribution. The differences between the Special
Limited Partners' capital accounts for financial statement and tax reporting
purposes are being amortized to the Limited Partners' capital account as the
components of the timing differences which created the balance reverse.
NOTE E - DISTRIBUTIONS
No distributions were declared or paid during the twelve months ended December
31, 1996. In March 1995, the Partnership declared and paid distributions,
attributable to cash flow from operations, totalling approximately $275,000 to
the partners.
NOTE F - MORTGAGE NOTES PAYABLE
The principal terms of mortgage notes payable are as follows (dollar amounts in
thousands):
Principal Monthly Principal
Balance At Payment Stated Balance
December 31, Including Interest Maturity Due At
Property 1996 Interest Rate Date Maturity
Celina Plaza Apartments
1st mortgage $ 1,696 $ 26 8.75% 07/97(2)$ 1,587
2nd mortgage 52 1 8.75% 07/97(2) 49
3rd mortgage 4,025 -- (1) 07/97(2) 4,025
Colony of Springdale
1st mortgage 4,468 40 9.50% 05/01 4,152
10,241(3)
Mortgage discounts (102)
Totals $ 10,139 $ 67 $ 9,813
(1) The wrap-mortgage loan collateralized by Celina Plaza Apartments requires
quarterly contingent interest payments of 50% of Celina Plaza's cash flow as
defined in the Promissory Note. Contingent interest payments of
approximately $74,000 were made in 1996, and approximately $42,000 were made
in 1995. This loan is evidenced by an all-inclusive note which wraps around
the 1st and 2nd mortgages but is presented above as net of these loans.
(2) The General Partner is currently in negotiations with the existing lender to
obtain a work-out on these mortgages and is also exploring the possibility
of refinancing this debt; however there is no assurance that these
negotiations will be successful.
(3) The estimated fair values of the Partnership's aggregate debt (excluding the
Celina Plaza 3rd mortgage) is approximately $6,256,000. This value
represents a general approximation of possible value and is not necessarily
indicative of the amounts the Partnership may pay in actual market
transactions. Due to the difficulty of forecasting the future cash flows of
the Celina Plaza Apartments, the Partnership has determined that it is not
practicable to estimate the fair value of the $4,025,000 third mortgage.
Scheduled principal payments of mortgage notes payable subsequent to December
31, 1996 are as follows (in thousands):
1997 $ 5,834
1998 66
1999 73
2000 80
2001 4,188
$10,241
NOTE G - INVESTMENT PROPERTIES AND ACCUMULATED DEPRECIATION
Initial Cost
To Partnership
Buildings Cost
and Related Capitalized
Personal Subsequent to
Description Encumbrances Land Property Acquisition
(in thousands)
Celina Plaza
El Paso, Texas $ 5,773 $ 736 $ 4,930 $1,260
Colony of Springdale
Springdale, Ohio 4,468 909 8,358 471
Totals $10,241 $1,645 $13,288 $1,731
<TABLE>
<CAPTION>
Gross Amount At Which Carried
At December 31, 1996
Buildings
And Related
Personal Accumulated Date Depreciable
Description Land Property Total Depreciation Acquired Life-Years
(Amounts in thousands)
<S> <C> <C> <C> <C> <C> <C>
Celina Plaza $ 736 $ 6,190 $ 6,926 $3,849 8/07/85 5-19
Colony of Springdale 916 8,822 9,738 3,301 2/20/87 5-30
Totals $1,652 $15,012 $16,664 $7,150
</TABLE>
Reconciliation of "Investment Properties and Accumulated Depreciation" (in
thousands):
Years Ended December 31,
1996 1995
Investment Properties
Balance at beginning of year $16,306 $15,823
Property improvements: 404 483
Disposals of property (46) --
Balance at End of Year $16,664 $16,306
Accumulated Depreciation
Balance at beginning of year $ 6,452 $ 5,776
Additions charged to expense 713 676
Disposals of property (15) --
Balance at end of year $ 7,150 $ 6,452
The aggregate cost of the real estate for Federal income tax purposes at
December 31, 1996 and 1995 is approximately $15,873,000 and $15,469,000. The
accumulated depreciation taken for Federal income tax purposed at December 31,
1996 and 1995 is approximately $7,237,000 and $6,613,000, respectively.
NOTE H - INCOME TAXES
Taxable income or loss of the Partnership is reported in the income tax returns
of its partners. Accordingly, no provision for income taxes is made in the
financial statements of the Partnership.
Differences between the net loss as reported and Federal taxable loss result
primarily from (1) depreciation over different methods and lives and on
differing cost bases of apartment properties, (2) change in rental income
received in advance. The following is a reconciliation of reported net loss and
Federal taxable loss (in thousands, except unit data):
1996 1995
Net income (loss) as reported $ (553) $ (750)
Add (deduct):
Depreciation differences 90 89
Unearned income (67) 86
Other (156) (201)
Accruals and prepaids 18 15
Federal taxable income (loss) $ (668) $ (761)
Federal taxable income (loss)
per limited partnership unit $(3.52) $(4.03)
The following is a reconciliation betweent the Partnership's reported amounts
and Federal tax basis of net assets and liabilities (in thousands):
Net assets as reported $ 950
Land and buildings 137
Accumulated depreciation (342)
Syndication and distribution costs 4,989
Other 282
Net assets - Federal tax basis $6,016
NOTE I - ABANDONED LIMITED PARTNERSHIP UNITS
For the year ended December 31, 1995, the number of Limited Partnership Units
decreased by 12 units, due to limited partners abandoning their units. In
abandoning Limited Partnership Units, a limited partner relinquishes all right,
title and interest in the Partnership as of the date of abandonment.
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
PART III
ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS,
COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT
The Registrant has no officers or directors. The General Partner manages and
controls the Registrant and has general responsibility and authority in all
matters affecting its business.
The name of the directors and executive officers of ConCap Equities, Inc.
("CEI"), the Partnership's General Partner, as of December 31, 1996, their age
and the nature of all positions with CEI presently held by them are set forth
below. There are no family relationships between or among any officers and
directors.
Name Age Position
William H. Jarrard, Jr. 50 President
Ronald Uretta 41 Vice President/Treasurer
Martha L. Long 37 Controller
John K. Lines, Esq. 37 Vice President/Secretary
Kelley M. Buechler 39 Assistant Secretary
William H. Jarrard, Jr. has been President of CEI since December 1996 and
Managing Director-Partnership Administration of Insignia since January 1991.
Mr. Jarrard served as Managing Director - Partnership Administration and Asset
Management from July 1994 until January 1996.
Ronald Uretta has been Vice President/Treasurer of CEI since December 1996 and
Insignia's Treasurer since January 1992. Since August 1996, he has also served
as Insignia's Chief Operating Officer. He has also served as Insignia's
Secretary from January 1992 to June 1994 and as Insignia's Chief Financial
Officer from January 1992 to August 1996. Since September 1990, Mr. Uretta has
also served as the Chief Financial Officer and Controller of Metropolitan Asset
Group.
Martha L. Long has been Controller of CEI since December 1996 and Senior Vice
President - Finance and Controller of Insignia since January 1997. In June
1994, Ms. Long joined Insignia as its Controller, and was promoted to Senior
Vice President - Finance in January 1997. Prior to that time, she was Senior
Vice President and Controller of The First Savings Bank, FSB in Greenville, SC.
John K. Lines, Esq. has been Secretary of CEI since December 1994 and General
Counsel and Secretary of Insignia since July 1994. From May 1993 until June
1994, Mr. Lines was the Assistant General Counsel and Vice President of Ocwen
Financial Corporation in West Palm Beach, Florida. From October 1991 until
April 1993, Mr. Lines was a Senior Attorney with Banc One Corporation in
Columbus, Ohio. From May 1984 until October 1991, Mr. Lines was employed as an
associate with Squire Sanders & Dempsey in Columbus, Ohio.
Kelley M. Buechler has been Assistant Secretary of CEI since December 1994 and
Assistant Secretary of Insignia since January 1991. During the five years prior
to joining Insignia in 1991, she served in a similar capacity for U.S. Shelter.
CEI is the general partner of the Partnership and 13 other Affiliated
Partnerships as of December 31, 1996.
ITEM 10. EXECUTIVE COMPENSATION
No direct compensation was paid or payable by the Partnership to directors or
officers for the year ended December 31, 1996, nor was any direct compensation
paid or payable by the Partnership to directors or officers of the General
Partner for the year ended December 31, 1996. The Partnership has no plans to
pay any such remuneration to any directors or officers of the General Partner in
the future.
See "Item 7 - Financial Statements, Note B - Related Party Transactions", for
amounts of compensation and reimbursement of salaries paid by the Partnership to
the General Partner and its affiliates and the former general partner and former
affiliates.
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
(a) Security Ownership of Certain Beneficial Owners
Except as provided below, as of March 1997, no person was known to CEI
to own of record or beneficially more than five percent of the Units of
the Partnership.
Number of Percent
Name and Address Units Of Total
Insignia Properties, L.P. 41,576 22.93%
One Insignia Financial Plaza
Greenville, SC 29602
Insignia Properties, L.P. is an affiliate of Insignia.
As of February 1997, no other person was known to CEI to own of record or
beneficially more than 5 percent (5%) of the Units of the Partnership.
(b) Beneficial Owners of Management
Neither CEI nor any of the directors or officers or associates of CEI own
any Units of the Partnership of record or beneficially.
(c) Changes in Control
Beneficial Owners of CEI
As of February 1997, the following persons were known to CEI to be the
beneficial owners of more than 5 percent (5%) of its common stock:
Number of Percent
Name and Address CEI Shares Of Total
GII Realty, Inc. 100,000 100%
One Insignia Financial Plaza
Greenville, SC 29602
GII Realty, Inc. is owned by an affiliate of Insignia (See "Item 1").
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Transactions with Current Management and Others
Except for the transactions described below, neither CEI nor any of its
directors, officers or associates, or any associates of any of them, has had any
interest in any other transaction to which the Partnership is a party. Please
refer to "Item 7 - Financial Statements, Note B - Related Party Transactions",
for the amounts and items of permissible compensation and fees paid to the
General Partner and its affiliates and other related parties for the last two
years.
The Partnership has paid property management fees to affiliates of the General
Partner based upon collected gross rental revenues for property management
services in each of the years ended December 31, 1996, and 1995, respectively.
All of the above-referenced agreements with affiliates of CEI and related
parties of the Partnership are subject to the conditions and limitations imposed
by the Partnership Agreement.
Conversion of Non-Corporate General Partner; Special Allocation
In the year ended December 31, 1991, the Partnership Agreement was amended to
convert the general partner interest held by the non-corporate general partner,
CCG, to that of a special limited partner ("Special Limited Partner"). The
Special Limited Partner does not have a vote and does not have any of the other
rights of a Limited Partner except the right to inspect the Partnership's books
and records; however, the Special Limited Partner will retain the economic
interest in the Partnership which it previously owned as general partner. CEI
became the sole general partner of the Partnership effective as of December 31,
1991. In connection with CCG's conversion, a special allocation of gross income
was made to the Special Limited Partner in order to eliminate its tax basis
negative capital account.
After the conversion, the various owners of interests in the Special Limited
Partner transferred portions of their interests to CEI so that CEI now holds a
.2% interest in all allocable items of income, loss and distribution. The
difference between the Special Limited Partners' capital accounts for financial
statement and tax reporting purposes is being amortized to the Limited Partners'
capital account as the components of the timing differences which created the
balance reverse.
ITEM 13. EXHIBITS, FINANCIAL STATEMENTS, SCHEDULES AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 27, Financial Data Schedule, is filed as an exhibit to this
report.
See Exhibit Index contained herein for listing of exhibits.
(b) Reports on Form 8-K filed during the fourth quarter of 1996:
None.
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
CONSOLIDATED CAPITAL PROPERTIES VI
By: CONCAP EQUITIES, INC.
General Partner
By: /s/William H. Jarrard, Jr.
President
By: /s/Ronald Uretta
Ronald Uretta
Vice President/Treasurer
Date: March 19, 1997
In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
date indicated.
/s/William H. Jarrard, Jr. President
William H. Jarrard, Jr.
/s/Ronald Uretta Vice President/Treasurer
Ronald Uretta
INDEX OF EXHIBITS
EXHIBIT NO. DOCUMENT DESCRIPTION
3 Certificates of Limited Partnership as
amended to date.
10.1 Bill of Sale and Assignment dated October
23, 1990, by and between CCEC and ConCap
Services Company (Incorporated by reference to
the Quarterly Report on Form 10-Q for the
quarter ended September 30, 1990).
10.2 Assignment and Assumption Agreement dated
October 23, 1990, by and between CCEC and
ConCap Management Limited Partnership
("CCMLP") (Incorporated by reference to the
Quarterly Report on Form 10-Q for the
quarter ended September 30, 1990).
10.3 Property Management Agreement No. 119
dated April 9, 1991, by and between Colony
Springdale Associates and CCMLP.
(Incorporated by reference to the Annual
Report on Form 10-K for the year ended
December 31, 1991).
10.4 Assignment and Agreement as to Certain
Property Management Services dated April
9, 1991, by and between CCMLP and ConCap
Capital Company. (Incorporated by
reference to the Annual Report on Form 10-K
for the year ended December 31, 1991).
10.5 Investor Services Agreement dated October
23, 1990, by and between the Partnership
and CCEC (Incorporated by reference to the
Quarterly Report on Form 10-Q for the
quarter ended September 30, 1990).
10.6 Assignment and Assumption Agreement
(Investor Services Agreement) dated October
23, 1990, by and between CCEC and ConCap
Services Company. (Incorporated by
reference to the Annual Report on Form 10-K
for the year ended December 31, 1990).
10.7 Letter of Notice dated December 20, 1991,
from Partnership Services, Inc. ("PSI") to
the Partnership regarding the change in
ownership and dissolution of ConCap
Services Company whereby PSI assumed the
Investor Services Agreement. (Incorporated
by reference to the Annual Report on Form 10-K
for the year ended December 31, 1991).
10.8 Financial Services Agreement dated October 23,
1990, by and between the Partnership and CCEC
(Incorporated by reference to the Quarterly
Report on Form 10-Q for the quarter ended
September 30, 1990).
10.9 Assignment and Assumption Agreement (Financial
Services Agreement) dated October 23, 1990, by
and between CCEC and ConCap Capital Company
(Incorporated by reference to the Quarterly
Report on Form 10-Q for the quarter ended
September 30,
1990).
10.10 Letter of Notice dated December 20, 1991, from
PSI to the Partnership regarding the change in
ownership and dissolution of ConCap Capital
Company whereby PSI assumed the Financial
Services Agreement. (Incorporated by reference
to the Annual Report on Form 10-K for the year
ended December 31, 1991).
10.11 Property Management Agreement No. 421 datedMay
13, 1993, by and between the Partnership and
Coventry Properties, Inc. (Incorporated by
reference to the Quarterly Report on Form 10-Q
for the quarter ended September 30, 1993).
10.12 Assignment and Assumption Agreement(Property
Management Agreement No. 421) dated May
13, 1993, by and between Coventry Properties,
Inc. R&B Apartment Management Company, Inc. and
Partnership Services, Inc. (Incorporated by
reference to the Quarterly Report on Form 10-Q
for thequarter ended September 30, 1993).
10.13 Assignment and Agreement as to Certain
Property Management Services dated May 13,
1993, by and between Coventry Properties,
Inc. and Partnership Services, Inc.
(Incorporated by reference to the Quarterly
Report on Form 10-Q for the quarter ended
September 30, 1993).
10.14 Property Management Agreement No. 515 dated
June 1, 1993, by and between the Partnership
and Coventry Properties, Inc.
10.15 Assignment and Agreement as to Certain
Property Management Services dated November
17, 1993, by and between Coventry Properties,
Inc. and Partnership Services, Inc.
10.16 Stock and Asset Purchase Agreement, dated
December 8, 1994 (the "Gordon Agreement"),
among MAE-ICC, Inc. ("MAE-ICC"), Gordon Realty
Inc. ("Gordon"), GII Realty, Inc. ("GII
Realty"), and certain other parties.
(Incorporated by reference to Form 8-K dated
December 8, 1994)
10.17 Exercise of the Option (as defined in the
Gordon Agreement), dated December 8, 1994,
between MAE-ICC and Gordon. (Incorporated by
reference to Form 8-K dated December 8, 1994)
10.18 Exercise of the remaining portion of the
Option (as defined in the Gordon Agreement)
dated December 8, 1994, between MAE-ICC and
Gordon. (Incorporated by reference to Form 8-K
dated October 24, 1995)
11 Statement regarding computation of Net Income
per Limited Partnership Unit (Incorporated by
reference to Note 1 of Item 8 - Financial
Statements of this Form 10-K).
16.1 Letter, Dated August 12, 1992, from Ernst &
Young to the Securities and Exchange
Commission regarding change in certifying
accountant. (Incorporated by reference to
Form 8-K dated August 6, 1992)
16.2 Letter dated May 9, 1995 from the Registrant's
former independent accountant regarding its
concurrence with the statements made by the
Registrant regarding a change in the
certifying accountant. (Incorporated by
reference to Form 8-K dated May 3, 1995)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Consolidated
Capital Properties VI 1996 Year-End 10-KSB and is qualified in its entirety by
reference to such 10-KSB filing.
</LEGEND>
<CIK> 0000755908
<NAME> CONSOLIDATED CAPITAL PROPERTIES VI
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<CASH> 1,478
<SECURITIES> 305
<RECEIVABLES> 29
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 16,664
<DEPRECIATION> 7,150
<TOTAL-ASSETS> 11,721
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 10,139
0
0
<COMMON> 0
<OTHER-SE> 950
<TOTAL-LIABILITY-AND-EQUITY> 11,721
<SALES> 0
<TOTAL-REVENUES> 3,314
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,867
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 890
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (553)
<EPS-PRIMARY> (3.04)<F2>
<EPS-DILUTED> 0
<FN>
<F1>Registrant has an unclassified balance sheet.
<F2>Multiplier is 1.
</FN>
</TABLE>
