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, 1997
[ ] 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)
(864) 239-1000
Issuer's telephone number
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. $6,598,000.
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 a specified date within the past 60 days. Market value
information for the Registrant's partnership interests is not available.
Should a trading market develop for these interests, it is the General Partner's
belief that the aggregate market value of the voting partnership interests 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 $50,000,000 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
$45,500,000 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, 1997, the Partnership owns one property as described
in "Item 2 - Description of Property." Previously, the Partnership disposed of
seven properties.
Reserves, consisting of cash and cash equivalents, tenant security deposits,
investments, and reserves for capital improvements and contingencies totaling
approximately $2,676,000 are more than the reserve requirements of approximately
$2,070,000 at December 31, 1997. The excess in reserves primarily results from
the sale of Celina Plaza Apartments. (See "Note F" of the financial
statements). The working capital requirement must be met prior to any
consideration for distributions to the partners. A distribution totaling
$500,000 was made subsequent to year-end from surplus funds from the sale of
Celina Plaza Apartments. (See "Note E" of the financial statements.) 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 - Certain
Relationships and Related Transactions".
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 Partners dated August 10, 1990. As
part of this solicitation, the Limited Partners also approved an amendment to
the Partnership Agreement limiting 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 this 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.
Prior to December 1994, all of CEI's outstanding stock was 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. As
of December 31, 1997, Insignia Properties Trust, an affiliate of Insignia, owned
100% of the outstanding stock of CEI. As of December 31, 1997, Insignia
Properties, L.P., an affiliate of Insignia, owned 41,576 units of the
Partnership.
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. In the
fourth quarter of 1997, the Partnership sold Celina Plaza Apartments, located in
El Paso, Texas, to an unaffiliated third party. (See "Note F" of the financial
statements.) As of December 31, 1997, the Partnership owns one property as
noted below:
Date of
Property Purchase Type of Ownership Use
Colony of Springdale Apartments 02/20/87 Fee ownership subject Apartment -
Springdale, Ohio to first mortgage. 261 units
SCHEDULE OF PROPERTY:
(dollar amounts in thousands)
Carrying Accumulated Federal
Property Value Depreciation Rate Method Tax Basis
Colony of Springdale $ 9,866 $ 3,641 5-30 years S/L $ 5,558
See "Note A" of the Financial Statements included in "Item 7" for a description
of the Partnership's depreciation policy.
SCHEDULE OF MORTGAGE:
(dollar amounts in thousands)
Principal Principal
Balance At Stated Balance
December 31, Interest Maturity Due At
Property 1997 Rate Date Maturity
Colony of Springdale
1st mortgage $ 4,407 9.50% 05/01 $ 4,152
SCHEDULE OF RENTAL RATES AND OCCUPANCY:
Average Annual Average
Rental Rates Occupancy
Property 1997 1996 1997 1996
(per unit) (per unit)
Colony of Springdale $6,517 $6,270 88% 91%
As noted under "Item 1. Description of Business," the real estate industry is
highly competitive. The Partnership's property is subject to competition from
other residential apartment complexes in the area. The General Partner believes
that all of the property is adequately insured. The property's lease terms are
for one year or less and no tenant leases 10% or more of the available rental
space.
The decrease in occupancy at the Colony of Springdale is due to continued
adherence to stricter tenant qualification procedures and an increased number of
evictions as part of an effort to improve the tenant base. Ongoing property
improvements, 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 the tax rate in 1997 for the property was:
1997 1997
Taxes Rate
Colony of Springdale $ 113 4.42%
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 year ended December 31, 1997, 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
No established public trading market for Partnership Units exists nor is one
expected to develop. As of December 31, 1997, the Partnership had 3,740 holders
of Limited Partnership Units.
There were no cash distributions to the Limited Partners during the years ended
December 31, 1997 and 1996. A $500,000 distribution was declared subsequent to
December 31, 1997, to the Limited Partners from surplus funds from the sale of
Celina Plaza Apartments.
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
This item should be read in conjunction with the financial statements and other
items contained elsewhere in this report.
RESULTS OF OPERATIONS
The Partnership realized net income of approximately $3,359,000 for the year
ended December 31, 1997, compared to a net loss of approximately $553,000 for
the year ended December 31, 1996. (See "Note I" of the financial statements for
a reconciliation of these amounts to the Partnership's federal taxable income
(loss).) The increase in net income for the year ended December 31, 1997, is
primarily attributable to the gain of approximately $3,660,000 realized on the
sale of Celina Plaza as discussed below.
On October 20, 1997, the Partnership sold Celina Plaza Apartments, located in El
Paso, Texas, to an unaffiliated party, The Vandenburg Organization, a Texas
corporation. The sales price of the property was $6,600,000 and the sale
resulted in net proceeds of approximately $6,456,000, after payment of closing
costs. The net proceeds were used to pay accrued taxes and to pay-off the
mortgage debt secured by this property. Excess proceeds after such payments
amounted to approximately $779,000 to the Partnership.
With respect to the remaining investment property owned by the Partnership, net
income increased slightly due primarily to a decrease in operating expenses, the
majority of which was attributable to decreased maintenance expenses.
Maintenance expense decreased at the Colony of Springdale Apartments due to
various interior and exterior projects which were completed in 1996 with no
comparable expenditures in 1997. Also, increased cleaning, interior painting
and contract repair costs were incurred in 1996 due to increased move-outs.
Operating expense also decreased due to water-saving devices installed during
1997 at the Colony of Springdale Apartments which lowered water and sewer
expenses. Partially offsetting the decrease in operating expenses was a
decrease in rental income at the Colony of Springdale Apartments. This decrease
was due to lower occupancy from enforcement of stricter tenant qualification
procedures and increased evictions resulting from stricter enforcement of
collection policies. There was a related increase in advertising expense
(included in operating expenses) due to higher concessions being offered at the
Colony of Springdale Apartments in an effort to increase occupancy.
Included in operating expenses for the year ended December 31, 1997, is
approximately $15,000 of major repairs and maintenance comprised primarily of
window coverings and repairs to one unit at Celina Plaza Apartments due to minor
fire damage, which was not covered by insurance. For the year ended December 31,
1996, approximately $88,000 of repairs and maintenance comprised primarily of
parking lot repairs, exterior building improvements, major landscaping, swimming
pool repairs and window coverings is included in operating expense.
As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of its investment property 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
At December 31, 1997, the Partnership held cash and cash equivalents of
approximately $1,949,000 compared to approximately $1,478,000 at December 31,
1996. For the year ended December 31, 1997, net cash increased approximately
$471,000. Net cash provided by operating activities decreased due to an increase
in receivables and deposits and a decrease in accounts payable and other
liabilities. The increase in receivables and deposits resulted primarily from
increases in escrows for taxes. The decrease in accounts payable was due to the
timing of payments while other liabilities decreased due to the payment of
accrued interest on Celina Plaza Apartments. Net cash provided by investing
activities resulted primarily from proceeds received in the sale of Celina Plaza
Apartments. Net cash used in financing activities increased primarily due to the
repayment of the mortgage debt from the sale of Celina Plaza Apartments. Also,
principal payments increased due to additional payments totaling approximately
$170,000 being paid on the mortgage note secured by Celina Plaza Apartments in
order to obtain extensions on the indebtedness, which matured in July 1997,
prior to the sale of the property on October 20, 1997. (See "Note F" of the
financial statements.)
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 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 $4,407,000 has a maturity date of May 2001, at
which time the property will either be sold or the mortgage refinanced. Celina
Plaza Apartments was sold on October 20, 1997, for $6,600,000, and the sale
resulted in net proceeds of approximately $6,456,000, after payment of closing
costs (See "Note F" of the financial statements). No cash distributions were
declared or paid during the year ended 1997 or 1996. A distribution totaling
$500,000 from surplus funds resulting from the sale of Celina Plaza Apartments
was declared to the Limited Partners subsequent to December 31, 1997. 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.
YEAR 2000
The Partnership is dependent upon the General Partner and Insignia for
management and administrative services. Insignia has completed an assessment
and will have to modify or replace portions of its software so that its computer
systems will function properly with respect to dates in the year 2000 and
thereafter. The project is estimated to be completed not later than December
31, 1998, which is prior to any anticipated impact on its operating systems.
The General Partner believes that with modifications to existing software and
conversions to new software, the Year 2000 Issue will not pose significant
operational problems for its computer systems. However, if such modifications
and conversions are not made, or are not completed timely, the Year 2000 Issue
could have a material impact on the operations of the Partnership.
OTHER
Certain items discussed in this annual report may constitute forward-looking
statements within the meaning of the Private Litigation Reform Act of 1995 (the
"Reform Act") and as such may involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the Partnership to be materially different from any future results, performance,
or achievements expressed or implied by such forward-looking statements. Such
forward-looking statements speak only as of the date of this annual report. The
Partnership expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained
herein to reflect any change in the Partnership's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based.
ITEM 7. FINANCIAL STATEMENTS
CONSOLIDATED CAPITAL PROPERTIES VI
LIST OF FINANCIAL STATEMENTS
Report of Ernst & Young LLP, Independent Auditors
Consolidated Balance Sheet - December 31, 1997
Consolidated Statements of Operations - Years ended December 31, 1997
and 1996
Consolidated Statements of Changes in Partners' Capital (Deficit) - Years
ended December 31, 1997 and 1996
Consolidated Statements of Cash Flows - Years ended December 31, 1997 and
1996
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, 1997, 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, 1997. 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 at December 31, 1997, and the consolidated
results of its operations and its cash flows for each of the two years in the
period ended December 31, 1997, in conformity with generally accepted accounting
principles.
/s/ ERNST & YOUNG LLP
Greenville, South Carolina
January 23, 1998
CONSOLIDATED CAPITAL PROPERTIES VI
CONSOLIDATED BALANCE SHEET
December 31, 1997
(in thousands, except unit data)
Assets
Cash and cash equivalents $ 1,949
Investments 302
Receivables and deposits 349
Restricted escrows 90
Other assets 105
Investment properties (Notes G and H):
Land $ 916
Buildings and personal property 8,950
9,866
Less accumulated depreciation (3,641) 6,225
$ 9,020
Liabilities and Partners' Capital (Deficit)
Liabilities
Accounts payable $ 60
Tenant security deposits 55
Accrued property taxes 118
Other liabilities 71
Mortgage note payable (Note G) 4,407
Partners' Capital (Deficit)
General partner $ 1
Special limited partners (52)
Limited partners (181,808 units issued
and 181,300 outstanding) 4,360 4,309
$ 9,020
See Accompanying Notes to Consolidated Financial Statements
CONSOLIDATED CAPITAL PROPERTIES VI
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except unit data)
Years Ended December 31,
1997 1996
Revenues:
Rental income $2,703 $3,068
Other income 235 246
Gain on sale of property 3,660 --
Total revenues 6,598 3,314
Expenses:
Operating 1,502 1,807
General and administrative 168 179
Depreciation 660 713
Interest 680 890
Property taxes 229 278
Total expenses 3,239 3,867
Net income (loss) $3,359 $ (553)
Net income (loss) allocated to
general partner (0.2%) $ 7 $ (1)
Net income (loss) allocated to
limited partners (99.8%) 3,352 (552)
$3,359 $ (553)
Net income (loss) per limited partnership unit $18.49 $(3.04)
See Accompanying Notes to Consolidated Financial Statements
CONSOLIDATED CAPITAL PROPERTIES VI
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Years Ended December 31, 1997 and 1996
(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, 1995 181,300 $ (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 181,300 (6) (61) 1,017 950
Amortization of timing
difference -- -- 9 (9) --
Net income for the year ended
December 31, 1997 -- 7 -- 3,352 3,359
Partners' capital (deficit)
at December 31, 1997 181,300 $ 1 $ (52) $ 4,360 $ 4,309
<FN>
See Accompanying Notes to Consolidated Financial Statements
</FN>
</TABLE>
CONSOLIDATED CAPITAL PROPERTIES VI
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Years Ended December 31,
1997 1996
Cash flows from operating activities:
Net income (loss) $ 3,359 $ (553)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation 660 713
Amortization of loan costs and discounts 126 229
Gain on sale of property (3,660) --
Loss on disposition of property -- 31
Change in accounts:
Receivables and deposits (114) 214
Other assets (9) 15
Accounts payable (143) 27
Tenant security deposit liabilities (33) (7)
Accrued taxes 5 1
Other liabilities (157) (56)
Net cash provided by operating activities 34 614
Cash flows from investing activities:
Property improvements and replacements (167) (404)
Proceeds from sale of property 6,456 --
Proceeds from sale of investments -- 85
Dividends received from investments 3 --
Net (increase) decrease in restricted escrows (22) 70
Net cash provided by (used in)
investing activities 6,270 (249)
Cash flows from financing activities:
Payments on mortgage notes payable (371) (198)
Repayment of mortgage notes payable (5,462) --
Net cash used in financing activities (5,833) (198)
Net increase in cash and cash equivalents 471 167
Cash and cash equivalents at beginning of period 1,478 1,311
Cash and cash equivalents at end of period $ 1,949 $ 1,478
Supplemental disclosure of cash flow information:
Cash paid for interest $ 698 $ 661
See Accompanying Notes to Consolidated Financial Statements
CONSOLIDATED CAPITAL PROPERTIES VI
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1997
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, 1997, the
Partnership owns one residential property located near a major urban area 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.
Prior to December 1994, all of CEI's outstanding stock was 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
Financial Group, Inc. ("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. As
of December 31, 1997, Insignia Properties Trust, an affiliate of Insignia, owned
100% of the outstanding stock of CEI. At December 31, 1997, Insignia Properties
L.P., an affiliate of Insignia, owned 41,576 Units of the Partnership.
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
D" and CEI became the sole General Partner.
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
Investment properties are stated at cost. Acquisition fees are capitalized as a
cost of real estate. In accordance with "Statement of Financial Accounting
Standards No. 121, Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed Of", the Partnership records impairment losses
on long-lived assets used in operations when events and circumstances indicate
that the assets might be impaired and the undiscounted cash flows estimated to
be generated by those assets are less than the carrying amounts of those assets.
For the years ended December 31, 1997 and 1996, no adjustments for impairment of
value were necessary.
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
Cash and cash equivalents include cash on hand and in banks, demand deposits,
money market funds, and certificates of deposit with original maturities less
than 90 days. At certain times, the amount of cash deposited at a bank may
exceed the limit on insured deposits.
Tenant Security Deposits
The Partnership requires security deposits from lessees for the duration of the
lease and such deposits are included in receivables and deposits. Deposits are
refunded when the tenant vacates, provided the tenant has not damaged its space
and is current on its rental payments.
Loan Costs
Loan costs are included in other assets and are being amortized on a straight-
line basis over the life of the loans. As of December 31, 1997, the Partnership
had a total of approximately $176,000 of capitalized loan costs with related
accumulated amortization of approximately $91,000.
Reclassifications
Certain reclassifications have been made to the 1996 information to conform to
the 1997 presentation.
Investments: The Partnership values investment securities in accordance with
"Statement 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 values
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 $ 299 February 1998
Equity Securities 3 N/A
$ 302
Fair Value
"Statement of Financial Accounting Standards ("SFAS") No. 107, Disclosures about
Fair Value of Financial Instruments", as amended by "SFAS No. 119, Disclosures
about Derivative Financial Instruments and Fair Value of Financial Instruments",
requires disclosure of fair value information about financial instruments,
whether or not recognized in the balance sheet, for which it is practicable to
estimate fair value. Fair value is defined in the SFAS as the amount at which
the instruments could be exchanged in a current transaction between willing
parties, other than in a forced or liquidation sale. The Partnership believes
that the carrying amount of its financial instruments (except for long term
debt) approximates their fair value due to the short term maturity of these
instruments. The fair value of the Partnership's long term debt, after
discounting the scheduled loan payments to maturity, approximates its carrying
balance.
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 D",
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 $67,000 in 1997, and approximately $68,000 in
1996 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 its
affiliates for the management and administration of all Partnership activities.
The Partnership Agreement provides for payments to affiliates for services and
the reimbursement of certain expenses incurred by affiliates on behalf of the
Partnership. The following expenses were paid or accrued to an affiliate of the
General Partner during the years ended December 31, 1997 and 1996:
1997 1996
(in thousands)
Property management fees
(included in operating expenses) $152 $160
Reimbursements for services of affiliates
(included in general and administrative
expenses) 110 119
Included in reimbursements for services of affiliates is approximately $1,000
and $5,000 of reimbursements for construction oversight costs in 1997 and 1996,
respectively.
During the year ended December 31, 1997, an affiliate of Insignia received
approximately $100,000 in reimbursements related to the sale of Celina Plaza,
(See "Note F").
The Partnership Agreement also 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. No such
fees were paid or accrued in 1997 or 1996.
For the period of January 1, 1996 to August 31, 1997, the Partnership insured
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 master policy. The
agent assumed the financial obligations to the affiliate of the General Partner,
who received payments 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 was 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, investments and reserves for capital improvements and
contingencies totaling approximately $2,676,000 are more than the reserve
requirement of approximately $2,070,000 at December 31, 1997. The excess in
reserves primarily results from the sale of Celina Plaza Apartments. See "Note
E" regarding a distribution subsequent to December 31, 1997.
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 retained the economic interest in the Partnership which they
previously owned as a 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 accounts 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, 1997 and 1996. A distribution totaling $500,000 from surplus funds from the
sale of Celina Plaza was declared to the Limited Partners subsequent to December
31, 1997.
NOTE F - SALE OF PROPERTY
On October 20, 1997, the Partnership sold Celina Plaza Apartments, located in El
Paso, Texas, to an unaffiliated party, The Vandenburg Organization, a Texas
corporation. The sales price of the property was $6,600,000 and the sale
resulted in net proceeds of approximately $6,456,000, after payment of closing
costs. The net proceeds were used to pay accrued taxes and to pay-off the
mortgage debt secured by this property. Excess proceeds after such payments
amounted to approximately $779,000 to the Partnership.
NOTE G - MORTGAGE NOTE PAYABLE
The principal terms of mortgage note payable are as follows (dollar amounts in
thousands):
Principal Monthly Principal
Balance At Payment Stated Balance
December 31, Including Interest Maturity Due At
Property 1997 Interest Rate Date Maturity
Colony of Springdale
1st mortgage $ 4,407 40 9.50% 05/01 $ 4,152
Scheduled principal payments of mortgage note payable subsequent to December 31,
1997 are as follows (in thousands):
1998 $ 66
1999 73
2000 80
2001 4,188
Total $ 4,407
NOTE H - INVESTMENT PROPERTY AND ACCUMULATED DEPRECIATION
Initial Cost
To Partnership
Buildings Cost
and Related Capitalized
Personal Subsequent to
Description Encumbrances Land Property Acquisition
(in thousands)
Colony of Springdale
Springdale, Ohio $ 4,407 $ 909 $ 8,358 $ 599
<TABLE>
<CAPTION>
Gross Amount At Which Carried
At December 31, 1997
Buildings
And Related
Personal Accumulated Date Depreciable
Description Land Property Total Depreciation Acquired Life-Years
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
Colony of Springdale Apartments $ 916 $ 8,950 $ 9,866 $ 3,641 2/20/87 5-30
</TABLE>
Reconciliation of "Investment Property and Accumulated Depreciation" (in
thousands):
Years Ended December 31,
1997 1996
Investment Property
Balance at beginning of year $16,664 $16,306
Property improvements 167 404
Disposals of property (6,965) (46)
Balance at End of Year $ 9,866 $16,664
Accumulated Depreciation
Balance at beginning of year $ 7,150 $ 6,452
Additions charged to expense 660 713
Disposals of property (4,169) (15)
Balance at end of year $ 3,641 $ 7,150
The aggregate cost of investment property for Federal income tax purposes at
December 31, 1997 and 1996 is approximately $8,938,000 and $15,873,000. The
accumulated depreciation taken for Federal income tax purposes at December 31,
1997 and 1996 is approximately $3,380,000 and $7,237,000, respectively.
NOTE I - 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 income or loss as reported and Federal taxable
income or loss result primarily from (1) depreciation over different methods and
lives and on differing cost bases of investment properties, (2) gain on sale of
property, and (3) write off of debt discounts. The following is a
reconciliation of reported net income or loss and Federal taxable income or loss
(in thousands, except unit data):
1997 1996
Net income (loss) as reported $ 3,359 $ (553)
Add (deduct):
Depreciation differences 116 90
Unearned income 19 (67)
Gain on sale 94 --
Other 4 (156)
Write-off of debt discounts (666) --
Accruals and prepaids 5 18
Federal taxable income (loss) $ 2,931 $ (668)
Federal taxable income (loss)
per limited partnership unit $ 15.49 $(3.52)
The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net assets and liabilities (in thousands):
Net assets as reported $ 4,309
Land and buildings (927)
Accumulated depreciation 261
Syndication and distribution costs 4,989
Other 1,182
Net assets - Federal tax basis $ 9,814
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, 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. 51 President & Director
Ronald Uretta 41 Vice President &
Treasurer
Martha L. Long 38 Controller
Robert D. Long, Jr. 30 Vice President
Daniel M. LeBey 32 Vice President &
Secretary
Kelley M. Buechler 40 Assistant Secretary
William H. Jarrard, Jr. has been President and Director of the General Partner
since December 1996. He has acted as Senior Vice President of Insignia
Properties Trust ("IPT"), parent of the Corporation, since May 1997. Mr.
Jarrard previously acted as Managing Director - Partnership Administration of
Insignia from January 1991 through September 1997 and served as Managing
Director - Partnership Administration and Asset Management from July 1994 until
January 1996.
Ronald Uretta has been Vice President and Treasurer of the General Partner since
December 1996 and Insignia's Treasurer since January 1992. Since August 1996,
he has also served as Chief Operating Officer. He has also served as Secretary
from January 1992 to June 1996 and as Insignia's Chief Financial Officer from
January 1992 to August 1996.
Martha L. Long has been Controller of the General Partner 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, in
Greenville, SC.
Robert D. Long, Jr. has been Vice President of the General Partner since January
1998. Mr. Long joined Metropolitan Asset Enhancement, L.P. ("MAE"), an
affiliate of Insignia, in September 1993. Since 1994 he has acted as Vice
President and Chief Accounting Officer of the MAE subsidiaries. Mr. Long was an
accountant for Insignia until joining MAE in 1993. Prior to joining Insignia,
Mr. Long was an auditor for the State of Tennessee and was associated with the
accounting firm of Harsman Lewis and Associates.
Daniel M. LeBey has been Vice President and Secretary of the General Partner
since January 29, 1998 and Insignia's Assistant Secretary since April 30, 1997.
Since July 1996 he has also served as Insignia's Associate General Counsel.
From September 1992 until June 1996, Mr. LeBey was an attorney with the law firm
of Alston & Bird LLP, Atlanta, Georgia.
Kelley M. Buechler has been Assistant Secretary of the General Partner since
June 1996 and Assistant Secretary of Insignia since 1991.
ITEM 10. EXECUTIVE COMPENSATION
No direct compensation was paid or payable by the Partnership to directors or
officers for the year ended December 31, 1997, 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.
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
(a) Security Ownership of Certain Beneficial Owners
Except as provided below, as of December 31, 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.
(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 December 31, 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
Insignia Properties Trust 100,000 100%
One Insignia Financial Plaza
Greenville, SC 29602
Insignia Properties Trust is an affiliate of Insignia (See "Item 1").
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Transactions with Current Management and Others
The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership activities.
The Partnership Agreement provides for payments to affiliates for services and
the reimbursement of certain expenses incurred by affiliates on behalf of the
Partnership. The following expenses were paid or accrued to an affiliate of the
General Partner during the years ended December 31, 1997 and 1996:
1997 1996
(in thousands)
Property management fees
(included in operating expenses) $152 $160
Reimbursements for services of affiliates
(included in general and administrative
expenses) 110 119
Included in reimbursements for services of affiliates is approximately $1,000
and $5,000 of reimbursements for construction oversight costs in 1997 and 1996,
respectively.
During the year ended December 31, 1997, an affiliate of Insignia received
approximately $100,000 in reimbursements related to the sale of Celina Plaza,
(See "Note F").
The Partnership Agreement also 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. No such
fees were paid or accrued in 1997 or 1996.
For the period of January 1, 1996 to August 31, 1997, the Partnership insured
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 master policy. The
agent assumed the financial obligations to the affiliate of the General Partner,
who received payments 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 was not significant.
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 1997:
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.
William H. Jarrard, Jr.
President
By: /s/Ronald Uretta
Ronald Uretta
Vice President/Treasurer
Date: March 3, 1998
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
dated May 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 the quarter 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)
10.19 Contract to Purchase and Sell Property
made and entered into as of August 13,
1997, but effective October 20, 1997, by
and between Consolidated Capital
Properties VI, a California limited
partnership, and The Vandenburg
Organization, a Texas corporation
regarding Celina Plaza Apartments.
10.20 Assignment and assumption of Leases dated
October 13, 1997, by and between
Consolidated Capital Properties VI, a
California limited partnership and The
Vandenburg Organization, a Texas
corporation, regarding Celina Plaza
Apartments.
10.21 Blanket Conveyance, Bill of Sale and
Assignment dated October 13, 1997, by and
between Consolidated Capital Properties
VI, a California limited partnership and
The Vandenburg Organization, a Texas
corporation, regarding Celina Plaza
Apartments.
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 1997 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-31-1997
<PERIOD-END> DEC-31-1997
<CASH> 1,949
<SECURITIES> 0
<RECEIVABLES> 349
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 9,866
<DEPRECIATION> (3,641)
<TOTAL-ASSETS> 9,020
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 4,407
0
0
<COMMON> 0
<OTHER-SE> 4,309
<TOTAL-LIABILITY-AND-EQUITY> 9,020
<SALES> 0
<TOTAL-REVENUES> 6,598
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,239
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 680
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,359
<EPS-PRIMARY> 18.49<F2>
<EPS-DILUTED> 0
<FN>
<F1>Registrant has an unclassified balance sheet.
<F2>Multiplier is 1.
</FN>
</TABLE>
