SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Date of Report: June 2, 2000
LIF
(Exact name of registrant as specified in its charter)
California 2-94509 94-2969720
(State or other (Commission File No.) (I.R.S. Employer
jurisdiction of Identification No.)
incorporation)
P.O. Box 130, Carbondale, Colorado 81623
(Address of principal executive offices)
(970) 963-8007
(Registrant's telephone number, including area code)
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ITEM 1. CHANGES IN CONTROL OF REGISTRANT
Not Applicable
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On May 19, 2000, the registrant sold one of its real property
investment known as Valley View Business Park, located in
Glenwood Springs, Colorado. The property consisted of 2
commercial buildings.
The buyer, Nellie-Bird, LLC., is not affiliated with the
registrant. The sale price received by the registrant was
$1,875,000 which resulted in a gain of $202,824 and cash
poceeds of $620,000.
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
Not Applicable
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS
Not Applicable
ITEM 5. OTHER EVENTS
Not Applicable
ITEM 6. RESIGNATION OF REGISTRANT'S DIRECTORS
Not Applicable
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial statements of business acquired
Not Applicable
(b) Pro Forma Balance Sheet - March 31, 2000
Pro Forma Statements of Operations:
Year ended March 31, 2000.
Notes to Pro Forma Financial Statements
(c) Exhibits
Not Applicable
ITEM 8. CHANGE IN FISCAL YEAR
Not Applicable
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PRO FORMA FINANCIAL STATEMENTS
The following Pro Forma Balance Sheet of the registrant as of March 31,
2000 and the Pro Forma Statement of Operations for the year ended March 31
2000, reflects pro forma adjustments to the registrant's historical
Financial Statement assuming the property was not owned by LIF during that
time as explained in Notes to Pro Forma Financial Statements.
The Pro Forma Statement of Operations for the year ended March 31, 2000
is not necessarily indicative of the actual results that would have occurred
had the property sale been consummated at the beginning of the respective
periods or of future operations of the registrant. The Pro Formas do not take
into consideration the increase in LIF's liquidity or possible uses of those
funds.
These statements should be read in conjunction with the Notes to Pro Forma
Financial Statements.
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<TABLE>
LIF
PRO FORMA BALANCE SHEET, MARCH 31, 2000
(Unaudited) (Dollars in thousands)
<CAPTION>
Pro Forma
Adjustments
Add (Deduct)
March 31, 2000 (Note A) Pro Forma
<S> <C> <C> <C>
ASSETS
INVESTMENTS IN REAL ESTATE:
Rental properties $ 2,140 $ (1,813) $ 327
Accumulated depreciation (296) 258 (38)
Rental properties - net 1,844 (1,555) 289
CASH 814 0 814
OTHER ASSETS
Accounts receivable 9 (9) 0
Prepaid expenses and deposits 2 (2) 0
Deferred expenses 13 (11) 2
Notes receivable 0 0 0
Total other assets 24 (22) 2
TOTAL $ 2,682 $ (1,577) 1,105
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
Notes payable $ 1,411 $ (1,106) $ 305
Accounts payable 17 (2) 15
Other liabilities 48 (40) 8
Total liabilities 1,476 (1,148) 328
PARTNERS' EQUITY 1,206 (429) 777
TOTAL $ 2,682 $ (1,577) $1,105
The accompanying notes are an integral part of the pro forma financial
statements.
</TABLE>
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<TABLE>
LIF
PRO FORMA STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 2000
(Unaudited) (In thousands except per unit amounts)
<CAPTION>
Pro Forma
Adjustments
Add (Deduct)
March 31, 2000 (Note B) Pro Forma
<S> <C> <C> <C>
REVENUE
Rental $ 68 $ (68) $ 0
Interest 8 0 8
Total Revenue 76 (68) 8
EXPENSE
Interest 30 (23) 7
Operating 16 (14) 2
Depreciation and amortization 17 (16) 1
General and administration 45 (3) 42
Total expense $ 108 $ (56) $ 52
NET LOSS $ (32) $ (12) $(44)
NET LOSS PER
PARTNERSHIP UNIT $ (2) $ (1) $ (3)
The accompanying notes are an integral part of the pro forma financial
statements.
</TABLE>
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NOTES TO PRO FORMA FINANCIAL STATEMENTS
(Dollars in thousands)
A. The Balance Sheet Pro Forma adjustments reflect the sale of the Valley
View Business Park as if the sale occurred on March 31, 2000.
A gain of $203 was recognized by the registrant which has been
adjusted for activity subsequent to March 31, 2000, and through the
date of sale (see Note B). The cost of investments in real estate,
accumulated depreciation, prepaid expenses and deposits, deferred costs,
notes payable and other liabilities have been adjusted by their
respective balances at March 31, 2000. The registrant received cash
proceeds of $620 from this sale.
B. The Pro Forma Statement of Operations for the year ended March 31,
2000, reflects the loss from continuing operations before reflecting
any amounts attributable to the operations of the Valley View Business
Park during 2000.
The gain of $203 from the property sale which has not been reflected
in the Pro Forma Statement of Operations, was determined as follows:
<TABLE>
<CAPTION>
<S> <C>
Sale price $ 1,875
Less: selling costs (126)
Net selling price 1,749
Property basis 1,813
Accumulated depreciation
and amortization (267)
Net book value 1,546
Gain on sale of rental property $ 203
</TABLE>
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: June 2, 2000 LIF
By: /s/ Gary K. Barr
Partners 85
Managing General Partner
