UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1995
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from to
Commission File Number 0-14481
Brauvin Real Estate Fund L.P. 5
(Exact name of registrant as specified in its charter)
Delaware 36-3432071
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 South Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
(312) 443-0922
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 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 .
<PAGE>
BRAUVIN REAL ESTATE FUND L.P. 5
INDEX
Page
PART I Financial Information
Item 1. Financial Statements . . . . . . . . . . . . . . . . . 3
Consolidated Balance Sheets at September 30, 1995
and December 31, 1994. . . . . . . . . . . . . . . . . 4
Consolidated Statements of Operations for the Nine
Months Ended September 30, 1995 and 1994 . . . . . . . 5
Consolidated Statements of Operations for the Three
Months Ended September 30, 1995 and 1994 . . . . . . . 6
Consolidated Statement of Partners' Capital for the
Period January 1, 1995 to September 30, 1995 . . . . . 7
Consolidated Statements of Cash Flows for the Nine
Months Ended September 30, 1995 and 1994 . . . . . . . 8
Notes to Consolidated Financial Statements . . . . . . 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . 12
PART II Other Information
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . 16
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . 16
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . 16
Item 4. Submissions of Matters to a Vote of Security
Holders. . . . . . . . . . . . . . . . . . . . . . . . 16
Item 5. Other Information. . . . . . . . . . . . . . . . . . . 16
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . 16
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . 17
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
Except for the December 31, 1994 Consolidated Balance Sheet, the following
Consolidated Balance Sheet as of September 30, 1995, Consolidated Statements
of Operations for the nine and three months ended September 30, 1995 and
1994, Consolidated Statement of Partners' Capital for the period January 1,
1995 to September 30, 1995 and Consolidated Statements of Cash Flows for the
nine months ended September 30, 1995 and 1994 for Brauvin Real Estate Fund
L.P. 5 (the "Partnership") are unaudited but reflect, in the opinion of the
management, all adjustments necessary to present fairly the information
required. All such adjustments are of a normal recurring nature.
These financial statements should be read in conjunction with the
financial statements and notes thereto included in the Partnership's 1994
Annual Report on Form 10-K.
<PAGE>
BRAUVIN REAL ESTATE FUND L.P. 5
(a Delaware limited partnership)
CONSOLIDATED BALANCE SHEETS
September 30, 1995 December 31, 1994
(Unaudited) (Audited)
ASSETS
Cash and cash equivalents $ 159,948 $ 106,289
Tenant receivables (net of
allowance of $7,956 and
$3,095, respectively) 62,640 93,422
Escrow and other deposits 150,760 83,199
Other assets 35,594 13,126
Investment in affiliated joint venture 646,460 712,179
Deposit with title company -- 2,929,581
1,055,402 3,937,796
Investment in real estate, at cost:
Land 2,411,849 3,716,151
Buildings 10,018,095 15,341,631
12,429,944 19,057,782
Less: accumulated depreciation (2,717,966) (4,103,727)
Total investment in real estate, net 9,711,978 14,954,055
Total Assets $10,767,380 $18,891,851
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accounts payable and accrued expenses $ 169,293 $ 602,607
Due to affiliates 51,996 25,988
Security deposits 37,760 56,772
Note payable -- 2,929,581
Mortgages payable 6,327,683 11,427,743
Total Liabilities 6,586,732 15,042,691
Minority Interest in Sabal Palm 990,961 1,019,775
Minority Interest (deficit) in the
Annex of Schaumburg -- (231,115)
Partners' Capital
General Partners (33,947) (35,239)
Limited Partners (9,914.5 limited
partnership units issued and
outstanding) 3,223,634 3,095,739
Total Partners' Capital 3,189,687 3,060,500
Total Liabilities and
Partners' Capital $10,767,380 $18,891,851
See notes to consolidated financial statements (unaudited).
<PAGE>
BRAUVIN REAL ESTATE FUND L.P. 5
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine Months Ended September 30, 1995 and 1994
(UNAUDITED)
1995 1994
INCOME
Rental $1,196,348 $1,336,507
Interest 6,685 3,474
Other, primarily expense reimbursements 223,056 460,074
Total income 1,426,089 1,800,055
EXPENSES
Mortgage and other interest 473,174 842,737
Depreciation 254,531 316,222
Real estate taxes (218,835) 507,600
Repairs and maintenance 52,663 106,165
Other property operating 110,059 199,185
General and administrative 171,877 175,285
Provision for investment property
impairment 2,649,046 --
Total expenses 3,492,515 2,147,194
Loss before affiliated joint
venture participation, minority
interests and extraordinary item (2,066,426) (347,139)
Equity interest in affiliated joint
venture's net loss (65,719) (52,208)
Minority interest's share of Sabal
Palm's net income (53,436) (27,882)
Minority interest's share of
Annex's net (income) loss (231,115) 156,608
Loss before extraordinary item (2,416,696) (270,621)
Extraordinary gain on extinguishment
of Annex debt 2,545,883 --
Net Income (Loss) $ 129,187 $ (270,621)
Net Income (Loss) Per Limited
Partnership Interest
(9,914.5 Units) $12.90 $(27.02)
See notes to consolidated financial statements (unaudited).
<PAGE>
BRAUVIN REAL ESTATE FUND L.P. 5
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended September 30, 1995 and 1994
(UNAUDITED)
1995 1994
INCOME
Rental $ 315,116 $ 372,999
Interest 2,208 1,368
Other, primarily expense reimbursements 38,027 121,083
Total income 355,351 495,450
EXPENSES
Mortgage and other interest 153,968 264,219
Depreciation 69,557 91,596
Real estate taxes 31,350 169,200
Repairs and maintenance 29,079 73,529
Other property operating 32,299 70,212
General and administrative 69,004 67,489
Provision for investment property
impairment -- --
Total expenses 385,257 736,245
Loss before affiliated joint venture
participation, minority interests
and extraordinary item (29,906) (240,795)
Equity interest in affiliated joint
venture's net loss (24,866) (13,880)
Minority interest's share of Sabal
Palm's net loss 3,284 16,516
Minority interest's share of the
Annex's net loss -- 73,412
Loss before extraordinary item (51,488) (164,747)
Extraordinary gain on extinguishment
of Annex debt -- --
Net Loss $ (51,488) $(164,747)
Net Loss Per Limited Partnership
Interest (9,914.5 Units) $(5.14) $(16.45)
See notes to consolidated financial statements (unaudited).
<PAGE>
BRAUVIN REAL ESTATE FUND L.P. 5
(a Delaware limited partnership)
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL
For the Period January 1, 1995 to September 30, 1995
(UNAUDITED)
General Limited
Partners Partners Total
BALANCE at January 1, 1995 $(35,239) $3,095,739 $3,060,500
Net income 1,292 127,895 129,187
BALANCE at September 30, 1995 $(33,947) $3,223,634 $3,189,687
See notes to consolidated financial statements (unaudited).
<PAGE>
BRAUVIN REAL ESTATE FUND L.P. 5
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 1995 and 1994
(UNAUDITED)
1995 1994
Cash Flows From Operating Activities:
Net income (loss) $ 129,187 $(270,621)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Provision for investment property impairment 2,649,046 --
Extraordinary gain on extinguishment of Annex debt (2,545,883) --
Equity interest in affiliated joint venture's
net loss 65,719 52,208
Minority interest's share of Sabal Palm's
net income 53,436 27,882
Minority interest's share of the Annex's
net income (loss) 231,115 (156,608)
Provision for doubtful accounts 4,861 40,316
Depreciation 254,531 328,915
Normalized rental revenue 4,636 6,630
Changes in operating assets and liabilities:
Decrease (increase) in tenant receivables 21,285 (78,229)
Increase in other assets (23,055) (17,146)
Increase in escrow and other deposits (67,561) (119,296)
Increase in due from affiliates -- (30,465)
(Decrease) increase in accounts payable
and accrued expenses (433,314) 496,221
Increase in due to affiliates 26,595 2,239
(Decrease) increase in tenant security deposits (19,012) 2,968
Net cash provided by operating activities 351,586 285,014
Cash Flows From Investing Activities:
Capital expenditures (11,500) (12,160)
Cash contribution to joint venture -- (16,800)
Cash distribution to minority partner-Sabal Palm (82,250) (81,545)
Cash used in investing activities (93,750) (110,505)
Cash Flows From Financing Activities:
Repayment of mortgages (204,177) (85,731)
Repayment of note payable (2,929,581) (33,307)
Decrease in deposit with title company 2,929,581 33,307
Net cash used in financing activities (204,177) (85,731)
Net increase in cash and cash equivalents 53,659 88,778
Cash and cash equivalents at beginning of period 106,289 66,577
Cash and cash equivalents at end of period $ 159,948 $ 155,355
See notes to consolidated financial statements (unaudited).
<PAGE>
BRAUVIN REAL ESTATE FUND L.P. 5
(a Delaware limited partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(1) BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for
the nine month period ended September 30, 1995 are not necessarily indicative
of the results that may be expected for the year ended December 31, 1995.
For further information, refer to the consolidated financial statements and
footnotes thereto included in the Annual Report on Form 10-K for the year
ended December 31, 1994.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reclassifications
Certain amounts in the 1994 financial statements have been reclassified
to conform to the 1995 presentation. This has not affected the previously
reported results of operations.
(3) MORTGAGES PAYABLE
On November 22, 1994, the lender to Crown Point, NationsBank of
Tennessee (the "Lender") exercised the right to call all amounts due as of
March 1, 1995. On March 1, 1995, a Forbearance Agreement was executed
between the Partnership and the Lender whereas the Lender has agreed to
forbear pursuing remedies with respect to defaults through and including
September 1, 1995 (the "First Forbearance Period"). On September 1, 1995, a
second Forbearance Agreement was executed between the Partnership and the
Lender whereas the Lender has agreed to forbear pursuing remedies with
respect to defaults through and including December 1, 1995 (the "Second
Forbearance Period"). During the First and Second Forbearance Periods the
terms and conditions remained and will remain unchanged. The General
Partners are pursuing alternative financing. However, there is no assurance
that the General Partners will be successful. If the General Partners are
unsuccessful in their efforts to obtain financing, the Partnership would
sustain a loss upon foreclosure as the carrying value of the property exceeds
the carrying value of the debt. The financial statements do not reflect any
adjustments that might result from the outcome of this uncertainty. The
carrying value of Crown Point at September 30, 1995, approximates $4,600,000,
which exceeds the carrying value of the debt by approximately $1,400,000 at
September 30, 1995.
On August 23, 1994, the Joint Venture filed a voluntary petition for
bankruptcy (Chapter 11) in the United States Bankruptcy Court in the Northern
District of Illinois. On February 10, 1995, the Bankruptcy Court ordered the
dismissal of the voluntary petition for bankruptcy effectively eliminating
the protection of the property from its creditors. Also on February 10,
1995, AUSA Life Insurance Company ("AUSA") filed a motion for appointment of
a receiver against the Joint Venture. On February 17, 1995 the motion was
granted and an order was issued. The receiver had full power and authority
to operate, manage and conserve the Joint Venture's property (the "Annex")
pursuant to the order. On February 15, 1995, the Joint Venture received an
amended notice of mortgage foreclosure from AUSA. The Joint Venture had
until March 17, 1995 to file an answer to the amended notice. The Joint
Venture did not answer on or before March 17, 1995. On April 3, 1995, a
judgment of foreclosure and sale was entered into against the Joint Venture.
A sheriff's sale of the Annex was held on May 10, 1995 and on May 15, 1995
title was transferred to AUSA. As a result of these transactions, the Joint
Venture recorded a $2,649,000 provision for investment property impairment to
reduce the Annex property to its estimated fair market value. In addition,
the Joint Venture recorded an extraordinary gain on the extinguishment of
debt in the amount of $2,546,000, which was the net amount of the $2,350,000
fair market value of the Annex property and the mortgage payable of
$4,896,000. Additionally, the Joint Venture had a final closing of its
accounting records which resulted in the reversal of accrued revenue and
expenses. The major items reversed were rental income, $34,000; real estate
taxes, $439,000; and property operating expenses, $64,000.
Also, in connection with the foreclosure of the Annex property, AUSA
repaid the $2,929,581 note payable held by John Hancock Mutual Life Insurance
Company (the "Lender"). In 1986 Stewart Title Company (the "Title Company")
assumed responsibility for making the debt payments on this note payable. In
January 1994, when the note was extended and the interest rate modified, the
Title Company and the Joint Venture agreed to equally share in the 2.5%
interest savings until the August 1, 1995 maturity. This interest savings
plus the monthly defeasance payments not received since January 1995 will be
netted against payments made by the Title Company for real estate taxes on
the Annex. The repayment of the note payable had no effect on the Joint
Venture since it was recorded as a deposit to the Title Company and as a note
payable to the Lender in the financial statements.
(4) TRANSACTIONS WITH AFFILIATES
Fees and other expenses paid to the General Partners or its affiliates
for the nine months ended September 30, 1995 and 1994, were as follows:
1995 1994
Management fees $82,081 $101,857
Reimbursable office expenses 70,605 76,005
Legal Fees 451 2,700
The Partnership believes the amounts paid to affiliates are
representative of amounts which would have been paid to independent parties
for similar services. The Partnership had made all payments to affiliates,
except for $2,728 for legal services, as of September 30, 1995.
<PAGE>
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
The Partnership intends to satisfy its short-term liquidity needs
through cash reserves, cash flow from the properties and the refinancing of
Crown Point.
On November 22, 1994, the lender to Crown Point, NationsBank of
Tennessee, (the "Lender") exercised the right to call all amounts due as of
March 1, 1995. On March 1, 1995, a Forbearance Agreement was executed
between the Partnership and the Lender whereas the Lender has agreed to
forbear pursuing remedies with respect to defaults through and including
September 1, 1995 (the "First Forbearance Period"). On September 1, 1995, a
second Forbearance Agreement was executed between the Partnership and the
Lender whereas the Lender has agreed to forbear pursuing remedies with
respect to defaults through and including December 1, 1995 (the "Second
Forbearance Period"). During the First and Second Forbearance Periods the
terms and conditions remained and will remain unchanged. The General
Partners are pursuing alternative financing. However, there is no assurance
that the General Partners will be successful. If the General Partners are
unsuccessful in their efforts to obtain financing, the Partnership would
sustain a loss upon foreclosure as the carrying value of the property exceeds
the carrying value of the debt.
On August 23, 1994, the Joint Venture filed a voluntary petition for
bankruptcy (Chapter 11) in the United States Bankruptcy Court in the Northern
District of Illinois. On February 10, 1995, the Bankruptcy Court ordered the
dismissal of the voluntary petition for bankruptcy effectively eliminating
the protection of the property from its creditors. Also on February 10,
1995, AUSA Life Insurance Company ("AUSA") filed a motion for appointment of
a receiver against the Joint Venture. On February 17, 1995 the motion was
granted and an order was issued. The receiver had full power and authority
to operate, manage and conserve the Joint Venture's property (the "Annex")
pursuant to the order. On February 15, 1995, the Joint Venture received an
amended notice of mortgage foreclosure from AUSA. The Joint Venture had
until March 17, 1995 to file an answer to the amended notice. The Joint
Venture did not answer on or before March 17, 1995. On April 3, 1995, a
judgment of foreclosure and sale was entered into against the Joint Venture.
A sheriff's sale of the Annex was held on May 10, 1995 and on May 15, 1995
title was transferred to AUSA. As a result of these transactions, the Joint
Venture recorded a $2,649,000 provision for investment property impairment to
reduce the Annex property to its estimated fair market value. In addition,
the Joint Venture recorded an extraordinary gain on the extinguishment of
debt in the amount of $2,546,000, which was the net amount of the $2,350,000
fair market value of the Annex property and the mortgage payable of
$4,896,000. Additionally, the Joint Venture had a final closing of its
accounting records which resulted in the reversal of accrued revenue and
expenses. The major items reversed were rental income, $34,000; real estate
taxes, $439,000; and property operating expenses, $64,000.
Also, in connection with the foreclosure of the Annex property, AUSA
repaid the $2,929,581 note payable held by John Hancock Mutual Life Insurance
Company (the "Lender"). In 1986 Stewart Title Company (the "Title Company")
assumed responsibility for making the debt payments on this note payable. In
January 1994, when the note was extended and the interest rate modified, the
Title Company and the Joint Venture agreed to equally share in the 2.5%
interest savings until the August 1, 1995 maturity. This interest savings
plus the monthly defeasance payments not received since January 1995 will be
netted against payments made by the Title Company for real estate taxes on
the Annex. The repayment of the note payable had no effect on the Joint
Venture since it was recorded as a deposit to the Title Company and as a note
payable to the Lender in the financial statements.
Long-term liquidity needs are expected to be satisfied through
modification of the mortgages at more favorable interest rates and
refinancing of the Sabal Palm mortgage when it matures on February 1, 1997.
The occupancy level at Crown Point at September 30, 1995 and December
31, 1994 was 95%. The Partnership is continuing to work to sustain the
occupancy level of Crown Point. Crown Point operated at a positive cash flow
for the nine months ended September 30, 1995.
Strawberry Fields continued to generate negative cash flow for the nine
months ended September 30, 1995. The occupancy level at Strawberry Fields
at September 30, 1995 was 83% compared to 78% at December 31, 1994.
At Sabal Palm, the Partnership and its joint venture partner are
continuing to work to sustain the occupancy level, which stood at 99% at
September 30, 1995 and 99% at December 31, 1994. Although the Sabal Palm
retail market appears to be overbuilt, the property has continued to generate
positive cash flow since its acquisition in 1986.
The General Partners of the Partnership expect to distribute proceeds
from operations, if any, and from the sale of real estate, to Limited
Partners in a manner that is consistent with the investment objectives of the
Partnership. Management of the Partnership believes that cash needs may
arise from time to time which will have the effect of reducing distributions
to Limited Partners to amounts less than would be available from refinancings
or sale proceeds. These cash needs include, among other things, maintenance
of working capital reserves in compliance with the Agreement as well as
payments for major repairs, tenant improvements and leasing commissions in
support of real estate operations.
Results of Operations - Nine Months Ended September 30, 1995 and 1994
(Amounts rounded to 000's)
The Partnership generated net income of $129,000 for the nine months
ended September 30, 1995 as compared to a net loss of $271,000 for the nine
months ended September 30, 1994. The $400,000 increase in net income
resulted primarily from the recording of the Partnership's share of the
extraordinary gain on extinguishment of the Annex's debt and the final
closing of the Joint Venture's accounting records.
Total income for the nine months ended September 30, 1995 was
$1,426,000, as compared to $1,800,000 for the nine months ended September 30,
1994, a decrease of $374,000. This decrease of $374,000 was primarily a
result of decreases in the Annex's rental and other income of $245,000 and
$195,000, respectively. The decreases in rental and other income at the
Annex were also attributable to the comparing of the nine months of income in
1994 to four and a half months of income in 1995, in addition to the final
closing of the Joint Venture's accounting records.
Total expenses for the nine months ended September 30, 1995 were
$3,492,000, as compared to $2,147,000 in 1994, an increase of $1,304,000.
The $1,304,000 increase in total expenses primarily resulted from the
provision for investment property impairment at the Annex of $2,649,000.
This provision was offset by decreases in the Annex's mortgage and other
interest, real estate taxes and operating expenses of $375,000, $703,000 and
$90,000, respectively. These decreases were also attributable to the final
closing of the Joint Venture's accounting records upon the foreclosure and
the comparison of nine months of expenses in 1994 to four and a half months
of expense in 1995.
Results of Operations - Three Months Ended September 30, 1995 and 1994
(Amounts rounded to 000's)
The Partnership generated net loss of $51,000 for the three months ended
September 30, 1995 as compared to a net loss of $165,000 in 1994. The
$114,000 decrease in net loss was due to a decrease in expenses due to the
foreclosure of the Annex. These decreases were offset by a decrease in
income which also was due to the foreclosure of the Annex.
Total income for the three months ended September 30, 1995 and 1994 was
$355,000 and $495,000, respectively, a decrease of $140,000. This decrease
of $140,000 was primarily a result of decreases at the Annex of $117,000 in
rental income and $64,000 in other income. This decrease in rental and other
income can primarily be attributed to the comparison of three months of Annex
income for the three months ended September 30, 1994 as opposed to no income
for the three months September 30, 1995.
Total expenses were $385,000 for the three months ended September 30,
1995 as compared to $736,000 for the same period in 1994. The decrease in
total expenses of $351,000 resulted primarily from the Annex foreclosure. In
addition to the decrease in expenses due to the Annex foreclosure the
expenses at the other properties have also decreased.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings.
None.
ITEM 2. Changes in Securities.
None.
ITEM 3. Defaults Upon Senior Securities.
None.
ITEM 4. Submission Of Matters To a Vote of Security Holders.
None.
ITEM 5. Other Information.
None.
ITEM 6. Exhibits and Reports On Form 8-K.
Exhibit 27. Financial Data Schedule
<PAGE>
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.
BY: Brauvin Ventures, Inc.
Corporate General Partner of
Brauvin Real Estate Fund L.P. 5
BY: /s/ Jerome J. Brault
Jerome J. Brault
Chairman of the Board of
Directors and President
DATE: November 13, 1995
BY: /s/ Thomas J. Coorsh
Thomas J. Coorsh
Chief Financial Officer
and Treasurer
DATE: November 13, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 159,948
<SECURITIES> 646,460 <F1>
<RECEIVABLES> 62,640
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 12,429,944 <F2>
<DEPRECIATION> 2,717,966
<TOTAL-ASSETS> 10,767,380
<CURRENT-LIABILITIES> 0
<BONDS> 6,327,683 <F3>
0
0
<COMMON> 3,189,687 <F4>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 10,767,380
<SALES> 0
<TOTAL-REVENUES> 1,426,089 <F5>
<CGS> 0
<TOTAL-COSTS> 843,469 <F6>
<OTHER-EXPENSES> (350,270) <F7>
<LOSS-PROVISION> 2,649,046 <F8>
<INTEREST-EXPENSE> 473,174
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 2,545,883 <F9>
<CHANGES> 0
<NET-INCOME> 129,187
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> "SECURITIES" REPRESENTS INVESTMENT IN JOINT VENTURE
<F2> "PP&E" REPRESENTS INVESTMENT IN REAL ESTATE [LAND AND
BUILDING]
<F3> "BONDS" REPRESENTS MORTGAGES PAYABLE
<F4> "COMMON" REPRESENTS TOTAL PARTNERS CAPITAL
<F5> "TOTAL REVENUES" REPRESENTS RENTAL, INTEREST, AND OTHER
INCOME
<F6> "TOTAL COSTS" REPRESENTS TOTAL EXPENSES LESS PROVISION FOR
INVESTMENT PROPERTY IMPAIRMENT
<F7> "OTHER EXPENSES" REPRESENTS INTEREST IN JOINT
VENTURES' NET INCOME/LOSS
<F8> "LOSS PROVISION" REPRESENTS PROVISION FOR INVESTMENT
PROPERTY IMPAIRMENT
<F9> "EXTRAORDINARY" REPRESENTS EXTRAORDINARY GAIN ON
EXTINGUISHMENT OF
ANNEX DEBT
</FN>
</TABLE>
