<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
For the three months ended March 31, 1998
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
(Name of small business issuer as specified in its charter)
Delaware 36-3432071
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
30 North LaSalle Street, Chicago, Illinois 60602
(Address of principal executive offices) (Zip Code)
(312) 443-0922
(Issuer's telephone number)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on
which registered
None None
Securities registered pursuant to Section 12(g) of the Act:
Limited Partnership Interests
(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 filling
requirements for the past 90 days. Yes X No .
BRAUVIN REAL ESTATE FUND L.P. 5
(a Delaware limited partnership)
INDEX
PART I
Page
Item 1. Financial Statements . . . . . . . . . . . . . . . . . . . . 3
Consolidated Balance Sheet at March 31, 1998 . . . . . . . . 4
Consolidated Statements of Operations for the
three months ended March 31, 1998 and 1997. . . . . . . . 5
Consolidated Statements of Cash Flows for the
three months ended March 31, 1998 and 1997. . . . . . . . 6
Notes to Consolidated Financial Statements . . . . . . . . . 7
Item 2. Management's Discussion and Analysis or Plan
of Operation . . . . . . . . . . . . . . . . . . . . . . . .15
PART II
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . .18
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . .18
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . . .18
Item 4. Submission of Matters to a Vote of Security
Holders. . . . . . . . . . . . . . . . . . . . . . . . . . .18
Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . .18
Item 6. Exhibits, and Reports on Form 8-K. . . . . . . . . . . . . .18
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
PART I - FINANCIAL INFORMATION
ITEM 1. Consolidated Financial Statements
The following Consolidated Balance Sheet as of March 31, 1998,
Consolidated Statements of Operations for the three months ended
March 31, 1998 and 1997 and Consolidated Statements of Cash Flows
for the three months ended March 31, 1998 and 1997 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 1997 Annual Report on Form 10-KSB.
<PAGE>
BRAUVIN REAL ESTATE FUND L.P. 5
(a Delaware limited partnership)
CONSOLIDATED BALANCE SHEET
(Unaudited)
March 31,
1998
ASSETS
Investment in real estate:
Land $ 2,411,849
Buildings and improvements 9,743,585
12,155,434
Less accumulated depreciation (3,087,039)
Net investment in real estate 9,068,395
Investment in Strawberry Fields
Joint Venture(Note 5) 524,829
Cash and cash equivalents 689,351
Rent receivable 99,137
Escrow deposits 166,016
Other assets 132,483
Due from affiliates 35,700
Total Assets $10,715,911
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Mortgage notes payable (Note 3) $ 6,279,889
Accounts payable and accrued expenses 174,887
Tenant security deposits 44,733
Due to affiliates 12,080
Total Liabilities 6,511,589
MINORITY INTEREST IN SABAL PALM
JOINT VENTURE 825,641
PARTNERS' CAPITAL:
General Partners (32,056)
Limited Partners (9,914.5 limited
partnership units issued and
outstanding) 3,410,737
Total Partners' Capital 3,378,681
Total Liabilities and
Partners' Capital $10,715,911
See accompanying notes to consolidated financial statements
<PAGE>
BRAUVIN REAL ESTATE FUND L.P. 5
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended March 31,
(Unaudited)
1998 1997
INCOME
Rental $429,321 $398,647
Interest 5,482 4,987
Other, primarily tenant
expense reimbursements 50,812 50,117
Total income 485,615 453,751
EXPENSES
Interest 137,304 141,550
Depreciation 67,621 67,386
Real estate taxes 33,942 35,868
Repairs and maintenance 7,931 12,522
Management fees (Note 4) 31,177 28,669
Other property operating 16,726 17,414
General and administrative 55,003 50,511
Total expenses 349,704 353,920
Income before minority
and equity interests 135,911 99,831
Minority interest's share of
Sabal Palm's net income (55,571) (44,510)
Equity interest in Strawberry
Fields Joint Venture's
net loss (11,387) (7,532)
Net income $68,953 $47,789
Net income Allocated
to the General Partners $ 690 $ 478
Net income Allocated
to the Limited Partners $68,263 $47,311
Net income Per Limited
Partnership Interest
(9,914.5 Units) $ 6.89 $ 4.77
See accompanying notes to consolidated financial statements
<PAGE>
BRAUVIN REAL ESTATE FUND L.P. 5
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31,
(Unaudited)
1998 1997
Cash Flows From Operating Activities:
Net income $ 68,953 $ 47,789
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 67,621 67,386
Provision for doubtful accounts 4,700 1,800
Equity interest in Strawberry Fields Joint
Venture's net loss 11,387 7,532
Minority Interest's share of Sabal
Palm Joint Venture's net income 55,571 44,510
Change in rent receivables 1,988 23,555
Change in other assets 7,548 3,626
Change in escrow deposits (47,263) (40,764)
Change in accounts payable
and accrued expenses 64,210 (37,350)
Change in due to affiliates 4,131 7,976
Change in tenant security deposits 1,000 (634)
Net cash provided by operating activities 239,846 125,426
Cash Flows From Investing Activities:
Capital expenditures (1,320) --
Cash distribution to Minority Partner of
Sabal Palm Joint Venture (79,900) (13,160)
Cash used in investing activities (81,220) (13,160)
Cash Flows From Financing Activities:
Repayment of mortgage notes payable (29,668) (3,103,716)
Proceeds from refinancing -- 3,200,000
Payment of loan fees -- (54,919)
Net cash (used in) provided by
financing activities (29,668) 41,365
Net increase in cash and cash equivalents 128,958 153,631
Cash and cash equivalents at beginning
of period 560,393 408,869
Cash and cash equivalents at end of
period $ 689,351 $ 562,500
Supplemental disclosure of
cash flow information:
Cash paid for interest $129,885 $ 161,668
See accompanying notes to consolidated financial statements
<PAGE>
BRAUVIN REAL ESTATE FUND L.P. 5
(a Delaware limited partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Brauvin Real Estate Fund L.P. 5 (the "Partnership") was organized
on June 28, 1985. The General Partners of the Partnership are
Brauvin Ventures, Inc. and Jerome J. Brault. On August 8, 1997, Mr.
Cezar M. Froelich resigned as an Individual General Partner
effective 90 days from August 14, 1997. Brauvin Ventures Inc. is
owned by A.G.E. Realty Corporation Inc. (50%) and by Messrs. Jerome
J. Brault (beneficially) (25%) and Cezar M. Froelich (25%). A. G.
Edwards & Sons, Inc. and Brauvin Securities, Inc., affiliates of
the General Partners, were the selling agents of the Partnership.
The Partnership is managed by an affiliate of the General Partners.
The Partnership was formed on June 28, 1985 and filed a
Registration Statement on Form S-11 with the Securities and
Exchange Commission which became effective on March 1, 1985. The
sale of the minimum of $1,200,000 of limited partnership interests
of the Partnership (the "Units") necessary for the Partnership to
commence operations was achieved on June 28, 1985. The
Partnership's offering closed on February 28, 1986. A total of
$9,914,500 of Units were subscribed for and issued between March 1,
1985 and February 28, 1986 pursuant to the Partnership's public
offering.
The Partnership has acquired directly or through joint ventures
the land and buildings underlying the Crown Point, Strawberry
Fields and Sabal Palm shopping centers.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Management's 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 reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Accounting Method
The accompanying consolidated financial statements have been
prepared using the accrual method of accounting.
Rental Income
Rental income is recognized on a straight line basis over the
life of the related leases. Differences between rental income
earned and amounts due per the respective lease agreements are
credited or charged, as applicable, to deferred rent receivable.
Federal Income Taxes
Under the provisions of the Internal Revenue Code, the
Partnership's income and losses are reportable by the partners on
their respective income tax returns. Accordingly, no provision is
made for Federal income taxes in the financial statements.
Consolidation of Special Purpose Entity
The Partnership has one special purpose entity ("SPE"),
Brauvin/Crown Point L.P., which is owned 99% by the Partnership
and 1% by an affiliate of the General Partners. Distributions from
the SPE are subordinated to the Partnership which effectively
precludes any distributions from the SPE to affiliates of the
General Partners. The creation of the SPE did not affect the
Partnership's economic ownership of the property. Furthermore,
this change in ownership structure had no material effect on the
financial statements of the Partnership.
Consolidation of Joint Venture Partnership
The Partnership owns a 53% interest in the Sabal Palm Joint
Venture which owns Sabal Palm Shopping Center. The accompanying
financial statements have consolidated 100% of the assets,
liabilities, operations and partners' capital of Sabal Palm Joint
Venture. The minority interests of the consolidated joint venture
are adjusted for the respective joint venture partner's share of
income or loss and any cash contributions from or distributions to
the joint venture partner, if any. All intercompany items and
transactions have been eliminated.
Investment in Joint Venture Partnership
The Partnership owns a 42% equity interest in the Strawberry
Fields Joint Venture (see Note 6). Strawberry Fields is reported
as an investment in an affiliated joint venture. The accompanying
financial statements include the investment in Strawberry Fields
Joint Venture using the equity method of accounting.
Investment in Real Estate
The Partnership's rental properties are stated at cost including
acquisition costs, leasing commissions, tenant improvements and are
net of provision for impairment. Depreciation and amortization are
recorded on a straight-line basis over the estimated economic lives
of the properties, which approximate 31.5 years, and the term of
the applicable leases, respectively. All of the Partnership's
properties are subject to liens under first mortgages (see Note 3).
In 1995, the Partnership adopted Statement of Financial
Accounting Standards No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of"
(SFAS 121). In conjunction with the adoption of SFAS 121, the
Partnership performed an analysis of its long-lived assets, and the
Partnership's management determined that there were no events or
changes in circumstances that indicated that the carrying amount of
the assets may not be recoverable at March 31, 1998 and December
31, 1997. Accordingly, no impairment loss has been recorded in the
accompanying financial statements for the three months ended March
31, 1998 and the year ended December 31, 1997.
Cash and Cash Equivalents
Cash and cash equivalents include all highly liquid debt
instruments with an original maturity within three months from date
of purchase.
Estimated Fair Value of Financial Instruments
Disclosure of the estimated fair value of financial instruments
is made in accordance with the requirements of Statement of
Financial Accounting Standards No. 107, "Disclosure About Fair
Value of Financial Instruments." The estimated fair value amounts
have been determined by using available market information and
appropriate valuation methodologies. However, considerable
judgement is necessarily required in interpreting market data to
develop estimates of fair value.
The fair value estimates presented herein are based on
information available to management as of March 31, 1998, but may
not necessarily be indicative of the amounts that the Partnership
could realize in a current market exchange. The use of different
assumptions and/or estimation methodologies may have a material
effect on the estimated fair value amounts.
The carrying amounts of the following items are reasonable
estimates of fair value: cash and cash equivalents; rent
receivable; escrow deposits; accounts payable and accrued
expenses; tenant security deposits; and due to/from affiliates.
(2) PARTNERSHIP AGREEMENT
The Partnership Agreement (the "Agreement") provides that 99% of
the net profits and losses from operations of the Partnership for
each fiscal year shall be allocated to the Limited Partners and 1%
of net profits and losses from operations shall be allocated to the
General Partners. The net profit of the Partnership from the sale
or other disposition of a Partnership property shall be allocated
as follows: first, there shall be allocated to the General
Partners the greater of: (i) 1% of such net profits; or (ii) the
amount distributable to the General Partners as Net Sale Proceeds
from such sale or other disposition, as defined in the Partnership
Agreement; and second, all remaining profits shall be allocated to
the Limited Partners. The net loss of the Partnership from any
sale or other disposition of a Partnership property shall be
allocated as follows: 99% of such net loss shall be allocated to
the Limited Partners and 1% of such net loss shall be allocated to
the General Partners.
The Agreement provides that distributions of Operating Cash Flow,
as defined in the Agreement, shall be distributed 99% to the
Limited Partners and 1% to the General Partners. The receipt by
the General Partners of such 1% of Operating Cash Flow shall be
subordinated to the receipt by the Limited Partners of Operating
Cash Flow equal to a 10% per annum, cumulative, non-compounded
return on Adjusted Investment, as such term is defined in the
Agreement (the "Preferential Distribution"). In the event the full
Preferential Distribution is not made in any year (herein referred
to as a "Preferential Distribution Deficiency") and Operating Cash
Flow is available in following years in excess of the Preferential
Distribution for said years, then the Limited Partners shall be
paid such excess Operating Cash Flow until they have paid any
unpaid Preferential Distribution Deficiency from prior years. Net
Sale Proceeds, as defined in the Agreement, received by the
Partnership shall be distributed as follows: (a) first, to the
Limited Partners until such time as the Limited Partners have been
paid an amount equal to the amount of their Adjusted Investment;
(b) second, to the Limited Partners until such time as the Limited
Partners have been paid an amount equal to any unpaid Preferential
Distribution Deficiency; and (c) third, 85% of any remaining Net
Sale Proceeds to the Limited Partners, and the remaining 15% of the
Net Sale Proceeds to the General Partners. The Preferential
Distribution Deficiency at March 31, 1998 equaled $10,086,519.
(3) MORTGAGES NOTES PAYABLE
Mortgages payable at March 31, 1998 consist of the following:
Interest Date
1998 Rate Due
Crown Point Shopping
Center (a) $3,109,521 7.55% 1/03
Sabal Palm Square
Shopping Center (b) 3,170,368 8.93% 3/02
$6,279,889
Each shopping center serves as collateral under its respective
nonrecourse debt obligation.
Maturities of the mortgages payable are as follows:
1998 $ 88,613
1999 128,086
2000 137,877
2001 150,124
2002 3,138,289
Thereafter 2,636,900
$6,279,889
(a) On December 28, 1995, the acquisition loan balance was paid
in full when Crown Point Shopping Center ("Crown Point") was
refinanced by NationsBanc Mortgage Capital Corporation (the
"Successor Lender"). The refinancing resulted in a $3,275,000 non-
recourse loan with a fixed interest rate of 7.55%, and amortization
based on a twenty year term with a maturity of January 1, 2003.
As a precondition to the new financing, the Successor Lender
required that ownership of the property reside in a single purpose
entity ("SPE"). To accommodate the lender's requirements,
ownership of the property was transferred to the SPE, Brauvin/Crown
Point L.P., which is owned 99% by the Partnership and 1% by an
affiliate of the General Partners. Distributions of Brauvin/Crown
Point L.P. are subordinated to the Partnership which effectively
precludes any distributions from the SPE to affiliates of the
General Partners. The creation of Brauvin/Crown Point L.P. did not
affect the Partnership's economic ownership of Crown Point.
Furthermore, this change in ownership structure had no material
effect on the financial statements of the Partnership.
The carrying value of Crown Point at March 31, 1998 was
approximately $4,250,000.
(b) On February 19, 1987, the Partnership and its joint venture
partner obtained a first mortgage loan secured by the Sabal Palm
Shopping Center ("Sabal Palm") in the amount of $3,200,000 from an
unaffiliated lender. The loan was payable with interest only at
9.5% per annum until February 1992 and then required payments of
principal and interest based on a 30-year amortization schedule
with a balloon mortgage payment in February 1997. Prior to the
scheduled maturity of this loan, the lender granted Sabal Palm an
extension until April 1, 1997. On March 31, 1997, Sabal Palm
obtained a new first mortgage loan in the amount of $3,200,000 (the
"First Mortgage Loan") secured by its real estate, from NationsBanc
Mortgage Capital Corporation. The First Mortgage Loan bears
interest at the rate of 8.93% per annum, is amortized over a 25-
year period, requires monthly payments of principal and interest of
approximately $26,700 and matures on March 26, 2002. A portion of
the proceeds of the First Mortgage Loan, approximately $3,077,000,
were used to retire Sabal Palm's existing mortgage from Lincoln
National Pension Insurance Company. The outstanding mortgage
balance encumbered by the property is $3,170,368 at March 31, 1998.
In the first quarter of 1998, the Partnership has became aware
that both Winn-Dixie and Walgreens may vacate their respective
spaces at Sabal Palm prior to their lease termination dates.
Although the Partnership has not been given official notice of
this potential event, the General Partners believe that there is a
likelihood that these tenants will vacate. The General Partners
are working with these tenants to determine their intent and the
most beneficial steps to be taken by the Partnership in response.
The carrying value of Sabal Palm approximated $4,818,000 at March
31, 1998.
(4) TRANSACTIONS WITH AFFILIATES
Fees and other expenses paid or payable to the General Partners
or its affiliates for the three months ended March 31, 1998 and
1997 were as follows:
1998 1997
Management fees $ 31,177 $ 20,536
Reimbursable office
expenses 23,100 21,979
Legal fees -- 187
The Partnership believes the amounts paid to affiliates are
representative of amounts which would have been paid to independent
parties for similar services. As of March 31, 1998, the
Partnership had made all payments to affiliates, except for
management fees of $10,319 and legal fees of $1,761. An amount of
$35,700 due from affiliates at March 31, 1998 represented an
advance made to Strawberry Fields.
<PAGE>
(5) EQUITY INVESTMENT
The Partnership owns a 42% interest in Strawberry Fields Joint
Venture, located in West Palm Beach, Florida, and accounts for its
investment under the equity method. The following are condensed
financial statements for Strawberry Fields Joint Venture:
March 31,
1998
Land, building and personal
property, net $6,951,300
Other assets 146,990
$7,098,290
Mortgage note payable $5,599,209
Other liabilities 247,916
5,847,125
Partners' capital 1,251,165
$7,098,290
For the three months ended March 31,
1998 1997
Rental income $ 196,546 $ 200,079
Other income 47,251 20,708
243,797 220,787
Mortgage and other
interest 126,969 109,109
Depreciation 49,968 51,407
Operating and
administrative expenses 93,973 78,205
270,910 238,721
Net loss $ (27,113) $ (17,934)
<PAGE>
ITEM 2.Management's Discussion and Analysis or Plan of
Operation.
General
Certain statements in this Annual Report that are not historical
fact constitute "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Without
limiting the foregoing, words such as "anticipates", "expects",
"intends", "plans" and similar expressions are intended to identify
forward-looking statements. These statements are subject to a
number of risks and uncertainties. Actual results could differ
materially from those projected in the forward-looking statements.
The Partnership undertakes no obligation to update these forward-
looking statements to reflect future events or circumstances.
Year 2000
In 1997, the Partnership initiated the conversion from its
existing accounting software to a program that is year 2000
compliant. Management has determined that the year 2000 issue will
not pose significant operational problems for its computer system.
All costs associated with this conversion are being expensed as
incurred, and are not material.
Also in 1997, management of the Partnership initiated formal
communications with all of its significant third party vendors,
service providers and financial institutions to determine the
extent to which the Partnership is vulnerable to those third
parties failure to remedy their own year 2000 issue. There can be
no guarantee that the systems of these third parties will be timely
converted and would not have an adverse effect on the Partnership.
Liquidity and Capital Resources
The Partnership intends to satisfy its short-term liquidity needs
through cash flow from the properties. Long-term liquidity needs
are expected to be satisfied through refinancing of the mortgages
when they mature.
The anchor tenant at Crown Point is Food City. The overall
occupancy level at Crown Point increased to 100% at March 31, 1998
and at December 31, 1997 when compared to 98% at March 31, 1997.
The Partnership is working to sustain the occupancy level of Crown
Point.
The occupancy level at Strawberry Fields at March 31, 1998 was
83%, compared to 86% at December 31, 1997 and 88% at March 31,
1997. Strawberry had a negative cash flow for the three months
ended March 31, 1998.
On September 18, 1995, the Strawberry Fields Joint Venture
notified the Lutheran Brotherhood (the "Strawberry Lender") that it
would exercise its option to extend the term of the Strawberry
Fields loan from the original maturity of November 1, 1995 to
December 1, 1998. The terms of the extension called for all
provisions of the loan to remain the same except for an additional
monthly principal payment of $12,500. Effective November 1, 1995,
the Strawberry Fields Joint Venture and the Strawberry Lender
agreed to modify the loan by reducing the interest rate to 7.5% for
November 1, 1995 through October 31, 1997 and by reducing the
monthly principal payment to $12,000. As of November 1, 1997 and
through the maturity date, December 1, 1998, the interest rate
reverted to the original 9.0% rate.
At Sabal Palm, the Partnership and its joint venture partner are
working to improve the occupancy level of Sabal Palm which stood at
96% as of March 31, 1998. Although the Sabal Palm retail market
appears to be overbuilt, the occupancy level of the building has
stayed relatively constant and it has generated positive cash flow
since its acquisition in 1986.
In addition, in the first quarter of 1998, the Partnership
became aware that both Winn-Dixie and Walgreens may vacate their
respective spaces at Sabal Palm prior to their lease termination
dates. Although the Partnership has not been given official
notice of this potential event, the General Partners believe that
there is a likelihood that these tenants will vacate. The General
Partners are working with these tenants to determine their intent
and the most beneficial steps to be taken by the Partnership in
response.
Sabal Palm was required to make a balloon mortgage payment in
February 1997. Prior to the scheduled maturity of the First
Mortgage Loan, the lender granted Sabal Palm an extension until
April 1, 1997. On March 31, 1997, Sabal Palm obtained a first
mortgage loan in the amount of $3,200,000 (the "First Mortgage
Loan"), secured by its real estate, from NationsBanc Mortgage
Capital Corporation. The First Mortgage Loan bears interest at the
rate of 8.93% per annum, is amortized over a 25-year period,
requires monthly payments of principal and interest of
approximately $26,700 and matures on March 26, 2002. A portion of
the proceeds of the First Mortgage Loan, approximately $3,077,000,
were used to retire Sabal Palm's existing mortgage from Lincoln
National Pension Insurance Company.
The General Partners expect to distribute proceeds from operating
cash flow, 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 refinancing 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 - Three Months Ended March 31, 1998 and 1997
(Amounts rounded to 000's)
The Partnership generated net income of $69,000 for the three
months ended March 31, 1998 as compared to net income of $48,000
for the same three month period in 1997. The $21,000 increase in
net income resulted primarily from the net of a $32,000 increase in
total income and an increase of $11,000 in the minority interest's
share of Sabal Palm's net income.
Total income for the three months ended March 31, 1998 was
$486,000 as compared to $454,000 for the same three month period in
1997, a increase of $32,000. The $32,000 increase resulted
primarily from an increase in the occupancy rate at Sabal Palm from
92% at March 31, 1997 to 96% at March 31, 1998. Additionally
contributing to the increase in rental income was increased
percentage rents earned at Sabal Palm.
For the three months ended March 31, 1998, total expenses were
$350,000 as compared to $354,000 for the same three month period in
1997, a decrease of $4,000. The $4,000 decrease in total expenses
resulted primarily from a decrease in repairs and maintenance at
Sabal Palm.
<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.
On May 15, 1998, B. Allen Aynessazian resigned as Chief Financial
Officer from the Corporate General Partner. Mr. Aynessazian is
returning to Giordano's Enterprises, a privately held restaurant
concern where he worked from 1989 until 1996, prior to joining the
Brauvin organization.
Mr. Aynessazian is being succeeded by Mr. Thomas E. Murphy, age
31. Mr. Murphy will be the Partnership's Principal Accounting
Officer. He is responsible for the daily operations of Partnership
accounting and financial reporting to regulatory agencies. Mr.
Murphy received a B.S. degree from Northern Illinois University in
1988. Prior to joining the Brauvin organization he was in the
accounting department of Zell/Merrill Lynch and First Capital Real
Estate Funds where he was responsible for the preparation of the
accounting and financial reporting for several real estate limited
partnerships and corporations. Mr. Murphy is a Certified Public
Accountant and is a member of the Illinois Certified Public
Accountants Society.
ITEM 6. Exhibits and Reports on Form 8-K.
Exhibit 27. Financial Data Schedule
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant 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: May 15, 1998
BY: /s/ B. Allen Aynessazian
B. Allen Aynessazian
Chief Financial Officer
And Treasurer
DATE: May 15, 1998
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 689,351
<SECURITIES> 524,829 <F1>
<RECEIVABLES> 99,137
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 12,155,434 <F2>
<DEPRECIATION> 3,087,039
<TOTAL-ASSETS> 10,715,911
<CURRENT-LIABILITIES> 231,700
<BONDS> 6,279,889 <F3>
0
0
<COMMON> 3,378,681 <F4>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 10,715,911
<SALES> 0
<TOTAL-REVENUES> 485,615 <F5>
<CGS> 0
<TOTAL-COSTS> 212,400 <F6>
<OTHER-EXPENSES> 66,958 <F7>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 137,304
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 68,953
<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 INTEREST
EXPENSE
<F7> "OTHER EXPENSES" REPRESENTS INTEREST IN JOINT VENTURES' NET
INCOME/LOSS
</FN>
</TABLE>
