Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) April 6, 1999
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ARMORED STORAGE INCOME INVESTORS LIMITED PARTNERSHIP
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(Exact Name of Registrant as Specified in Charter)
ARIZONA 2-95034LA 86-0503193
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
4425 N. 24TH STREET, SUITE 225, PHOENIX, ARIZONA 85016
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(Address of Principal Executive Offices)
Registrant's telephone number, including area code 602-230-1655
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Item 2. Pursuant to the authority granted under the limited partnership
agreement of the Registrant, the General Partner, on behalf of the Registrant,
opened an escrow on April 6, 1999 with Everest Storage II, a California limited
liability company to sell substantially all its assets, consisting of three
mini-storage facilities, to Everest Storage II for a total sales price of
$7,113,402. The General Partner has evaluated the offer and, after reviewing
comparable sales and capitalization rates in the real estate market today,
believes it to be in the best interest of the Registrant to proceed with the
transaction. The terms of the contract, which became effective April 6, 1999,
provide for no assumption of liabilities by the buyer, except for customary
prorations of property taxes and prepaid rents.
The contract is contingent on the buyer's evaluation of the properties. Everest
Storage II has sixty days from the date the Registrant provides it with the
required documentation to complete its due diligence. The buyer may extend the
due diligence period by an additional thirty days. Everest Storage II is an
affiliate of Everest Investors 8, LLC, which owns 1.26% of the Registrant.
The terms of the contract provide that Everest Storage II will enter into a
management contract with the current property manager, Armored Management, LLC,
the general partner of the general partner of the Registrant, for a period of
one year after the closing. It is anticipated that the terms of the management
agreement will be substantially the same as the existing agreement in place with
the Registrant. A six percent commission will be paid should the sale be
consummated, split between the buyers broker, Everest Financial Inc. and the
seller's broker, Dale D. Ulrich, a member of Armored Management, LLC. Should the
sale occur, the Registrant has agreed to a limited non-competition covenant with
Everest Storage II.
Should the transaction be consummated, the General Partner would begin to wind
up the affairs of the Registrant in order to make a liquidation distribution.
The General Partner estimates the final distribution would be in the range of
$425 to $445 per unit. It is anticipated the final distribution would be made 60
to 120 days after the transaction closes.
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 hereunto duly authorized.
Armored Storage Income Investors
Limited Partnership
By: Armored Storage One Limited
Partnership
Its: General Partner
Date 4/16/99 By /s/ Dale D. Ulrich
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Dale D. Ulrich
Member, Armored Management, LLC.
