UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report September 18, 1998
GRIFFIN REAL ESTATE FUND-V, A LIMITED PARTNERSHIP
MINNESOTA
Commission file number 2-95118
IRS Employer Identification No. 41-1507989
510 Marquette Avenue, Suite 300, Minneapolis, MN 55402
Registrant's telephone number: (612) 338-2828
<PAGE>
Item 2. Acquisition or disposition of assets.
DISPOSITION OF DESERT PINES APARTMENTS
OF TUCSON, ARIZONA
On September 18, 1998, Griffin Real Estate Fund-V, A Limited Partnership sold
the Desert Pines Apartments to Desert Pines Properties, LLC.
Description of Property
Desert Pines Apartments is a 272 unit apartment complex located at 201 South
Kolb Road, Tucson Arizona. The property was originally acquired by Griffin Real
Estate Fund-V on February 2, 1987 for $5,300,000. A down payment of $1,553,836
was made with the balance of $3,746,164 financed by assuming a wrap around
mortgage from the seller. On September 7,1988, the property debt was refinanced
with a new $3,600,000 first mortgage and the wrap around mortgage was
extinguished.
Sale of Property
The Desert Pines Apartments sales price of $7,300,000 cash was arrived at
through negotiations with the buyer who had no material relationship to Griffin
Real Estate Fund-V, to any affiliates of Griffin Real Estate Fund-V, to its
General Partner, or to any associates of its General Partner. With the proceeds
of the sale, the mortgage principal balance of $3,334,013, accrued interest of
$13,731, and sales costs were paid.
Item 7. Financial Statements and Exhibits
The following documents are filed as part of this report:
Proforma financial information.
1
<PAGE>
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
BALANCE SHEETS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
* After
ASSETS: Actual Adjustment Disposition Proforma
- ------- ------------ ------------ --------------------
<S> <C> <C> <C>
Cash and cash equivalents $ 575,355 $ (14,404) $ 560,951
Real estate tax escrow deposits 34,853 (12,227) 22,626
Receivables and other assets 33,813 (8,338) 25,475
------------ ------------ ------------
Total 644,021 (34,969) 609,052
------------ ------------ ------------
PROPERTY AND EQUIPMENT:
Land 2,724,000 (1,225,000) 1,499,000
Buildings and improvements 15,460,116 (5,546,410) 9,913,706
Furniture and equipment 1,313,087 (496,947) 816,140
------------ ------------ ------------
Total 19,497,203 (7,268,357) 12,228,846
Less accumulated depreciation 7,528,717 (2,525,010) 5,003,707
------------ ------------ ------------
Property and equipment - net 11,968,486 (4,743,347) 7,225,139
------------ ------------ ------------
Deferred expenses less accumulated
amortization - $218,073 122,008 (7,998) 114,010
------------ ------------ ------------
TOTAL ASSETS $ 12,734,515 $ (4,786,314) $ 7,948,201
============ ============ ============
LIABILITES AND PARTNERS' EQUITY:
- --------------------------------
LIABILITES:
Accounts payable:
Affiliate $ 1,422 $ -- $ 1,422
Other 107,535 (67,392) 40,143
Security deposits 110,468 (56,800) 53,668
Accrued interest 60,165 (23,428) 36,737
Mortgage notes payable 10,761,037 (3,366,991) 7,394,046
------------ ------------ ------------
Total liabilities 11,040,627 (3,514,611) 7,526,016
------------ ------------ ------------
PARTNERS' EQUITY:
General Partners 2,560 (12,717) (10,157)
Limited Partners 1,691,328 (1,258,986) 432,342
------------ ------------ ------------
Total Partners' Equity 1,693,888 (1,271,703) 422,185
------------ ------------ ------------
TOTAL LIABILITIES AND
PARTNERS' EQUITY $ 12,734,515 $ (4,786,314) $ 7,948,201
============ ============ ============
</TABLE>
* The after disposition proforma represents the historical operations of the
Partnership which does not include assets or liabilities relating to the
disposed property.
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<PAGE>
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
* After Disposition
REVENUES: Actual Adjustment Proforma
- --------- ----------- ----------- -----------
<S> <C> <C> <C>
Rent (less apartment vacancies: 1997,
$362,886) $ 3,767,882 $(1,244,602) $ 2,523,280
Interest 25,144 -- 25,144
Gain on sale of property
and equipment 673,909 -- 673,909
Other 70,978 (35,453) 35,525
----------- ----------- -----------
Total revenues 4,537,913 (1,280,055) 3,257,858
----------- ----------- -----------
EXPENSES:
Interest 1,025,494 (280,937) 744,557
Depreciation and amortization 775,133 (231,310) 543,823
Real Estate Taxes 226,621 (99,234) 127,387
Repairs and maintenance 606,816 (170,372) 436,444
Utilities 425,709 (123,920) 301,789
Salaries and employee benefits 535,187 (168,136) 367,051
Management fees to related parties 209,951 (63,859) 146,092
Administrative 134,295 (36,243) 98,052
Insurance 97,269 (29,835) 67,434
Bad Debt 31,589 (2,019) 29,570
Other 1,045 -- 1,045
----------- ----------- -----------
Total Expenses 4,069,109 (1,205,865) 2,863,244
----------- ----------- -----------
NET INCOME (LOSS) $ 468,804 $ (74,190) $ 394,614
=========== =========== ===========
NET INCOME (LOSS) ALLOCATED
TO GENERAL PARTNER $ 215,285 $ (742) $ 214,543
=========== =========== ===========
NET INCOME (LOSS) ALLOCATED
TO LIMITED PARTNERS $ 253,519 $ (73,448) $ 180,071
=========== =========== ===========
PER UNIT:
NET INCOME (LOSS) $ 6.63 $ (1.92) $ 4.71
=========== =========== ===========
</TABLE>
* The after disposition proforma represents the historical operations of the
Partnership which does not include operating income or expenses relating to the
disposed property, or the gain or loss on disposal.
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<PAGE>
GRIFFIN REAL ESTATE FUND-V,
A LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS
JUNE 30, 1998
<TABLE>
<CAPTION>
* After Disposition
ASSETS: Actual Adjustments Proforma
----------- ----------- --------
<S> <C> <C> <C>
Cash and cash equivalents $ 2,960,650 $ (86,514) $ 2,874,136
Receivables and other assets 158,022 (23,548) 134,474
----------- ----------- -----------
Total 3,118,672 (110,062) 3,008,610
----------- ----------- -----------
PROPERTY AND EQUIPMENT:
Land 1,485,000 (1,225,000) 260,000
Buildings and Improvements 10,061,269 (5,558,590) 4,502,679
Furniture and Equipment 865,048 (496,946) 368,102
----------- ----------- -----------
Total 12,411,317 (7,280,536) 5,130,781
Less accumulated depreciation 5,035,325 (2,638,422) 2,396,903
----------- ----------- -----------
Property and Equipment - net 7,375,992 (4,642,114) 2,733,878
----------- ----------- -----------
TOTAL ASSETS $10,494,664 $(4,752,176) $ 5,742,488
=========== =========== ===========
LIABILITIES AND PARTNERS' EQUITY:
LIABILITIES:
Accounts payable and accrued
liabilities $ 146,969 $ (95,654) $ 51,315
Security Deposit 73,064 (49,860) 23,204
Mortgage notes payable 6,472,149 (3,345,342) 3,126,807
----------- ----------- -----------
Total liabilities 6,692,182 (3,490,856) 3,201,326
----------- ----------- -----------
PARTNERS' EQUITY:
General Partners 42,856 (12,613) 30,243
Limited Partners 3,759,626 (1,248,707) 2,510,919
----------- ----------- -----------
Total Partners' Equity 3,802,482 (1,261,320) 2,541,162
----------- ----------- -----------
TOTAL LIABILITIES AND
PARTNERS' EQUITY $10,494,664 $(4,752,176) $ 5,742,488
=========== =========== ===========
</TABLE>
* The after disposition proforma represents the historical operations of the
Partnership which does not include assets or liabilities relating to the
disposed property.
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<PAGE>
GRIFFIN REAL ESTATE FUND - V
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1998
(unaudited)
<TABLE>
<CAPTION>
REVENUES: Actual Adjustments *After Disposition
----------- ----------- Proforma
--------
<S> <C> <C> <C>
Rental Income $ 1,751,662 $ (662,389) $ 1,089,273
Interest Income 13,730 -- 13,730
Other Income 38,155 (20,752) 17,403
Gain On Sale of Property 2,577,450 -- 2,577,450
----------- ----------- -----------
Total Revenues 4,380,997 (683,141) 3,697,856
----------- ----------- -----------
OPERATING EXPENSES:
Operating Expenses 1,031,595 (346,693) 684,902
Interest Expense 504,310 (139,418) 364,892
Depreciation and amortization 321,492 (117,412) 204,080
----------- ----------- -----------
Total Operating Expenses 1,857,397 (603,523) 1,253,874
----------- ----------- -----------
NET INCOME BEFORE
EXTRAORDINARY ITEM 2,523,600 (79,618) 2,443,982
EXTRAORDINARY ITEM -
LOSS ON DEBT EXTINGUISHMENT (294,229) -- (294,229)
----------- ----------- -----------
NET INCOME 2,229,371 (79,618) 2,149,753
NET INCOME ALLOCATED
TO GENERAL PARTNER 46,335 (796) 45,539
----------- ----------- -----------
NET INCOME ALLOCATED
TO LIMITED PARTNERS $ 2,183,036 $ (78,822) $ 2,104,214
=========== =========== ===========
PER UNIT:
NET INCOME BEFORE $ 64.70 $ (9.68) $ 55.02
EXTRAORDINARY ITEM
EXTRAORDINARY ITEM (7.62) -- (7.62)
----------- ----------- -----------
NET INCOME $ 57.08 $ (9.68) $ 47.40
=========== =========== ===========
</TABLE>
* The after disposition proforma represents the historical operations of the
Partnership which does not include operating income or expenses relating to the
disposed property, or the gain or loss on disposal.
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<PAGE>
Signatures
Pursuant to the requirements of the Securities and Exchange Act o f 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GRIFFIN REAL ESTATE FUND V,
A LIMITED PARTNERSHIP
BY: GRIFFIN EQUITY PARTNERS
ITS GENERAL PARTNER
Date: October 2, 1998 BY: /s/ Larry D. Fransen
------------------------------
Larry D. Fransen
General Partner
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