March 3, 1994
Securities and Exchange Commission
450 Fifth Street, N.W.
Judiciary Plaza
Washington, D.C. 20549
Re: JMB Income Properties Limited - XII
Commission File No. 0-16108
Form 8-K
Gentlemen:
Transmitted, for the above-captioned registrant, is the electronically filed
executed copy of registrant's current report on Form 8-K dated February 28,
1994.
Thank you.
Very truly yours,
JMB INCOME PROPERTIES LIMITED - XII
By: JMB Realty Corporation
Managing General Partner
By: C. SCOTT NELSON
C. Scott Nelson, Vice President
Accounting Officer
CSN:jo
Enclosures
March 3, 1994
U.S. Securities and Exchange Commission
Operations Center, Stop 0-7
6432 General Green Way
Alexandria, Virginia 22312
Re: JMB Income Properties Limited - XII
Commission File No. 0-16108
Form 8-K
Gentlemen:
Enclosed, for the above-captioned registrant, is one paper copy of which is
manually executed of registrant's report on Form 8-K which is dated February
28, 1994.
Please acknowledge receipt of the Form 8-K filing by signing and returning the
enclosed self-addressed post card.
Thank you.
Very truly yours,
JMB INCOME PROPERTIES LIMITED - XII
By: JMB Realty Corporation
Managing General Partner
By: C. SCOTT NELSON
C. Scott Nelson, Vice President
Accounting Officer
CSN:jo
Enclosures
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 (Date of earliest event reported): January 17, 1994
JMB INCOME PROPERTIES LIMITED - XII
(Exact name of registrant as specified in its charter)
Illinois 0-16108 36-3337796
(State or other) (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Organization
900 N. Michigan Avenue, Chicago, Illinois 60611-1575
(Address of principal executive office)
Registrant's telephone number, including area code: (312) 915-1987
TOPANGA PLAZA
Los Angeles, California
Item 5. Other Events. JMB Income Properties Limited - XII (the
"Partnership") owns an interest, through a joint venture ("Joint Venture"), in
the Topanga Plaza Shopping Center ("the Center") located in the Northern
portion of Los Angeles, California. On January 17, 1994, an earthquake
occurred in the Los Angeles, California area. The epicenter was located in
the town of Northridge which is approximately six miles from the Center.
Consequently, the entire Center, including the four major department stores
who own their own buildings, suffered some casualty damage. The approximately
360,000 square feet of the Center's shops owned by the Joint Venture did not
suffer major structural damage. The Center's manager, an affiliate of the
Partnership's venture partner, was able to complete the clean-up and required
life safety procedures in order to open a portion of the Center to the public
on January 28, 1994. As of the date of this report, 97 of the Center's 115
shops have opened, and the remaining shops are expected to open during the
upcoming weeks as the tenants complete their repairs. Only one of the four
major department stores has been able to open and, as further explained below,
it may take several weeks or months before the entire Center is open and
operating once again.
Most of the tenant damage at the Center occurred on the second level,
where approximately 70% of the tenants lost their glass storefronts. The
costs to repair this damage are the responsibility of the various tenants
affected. The damage sustained by the Center, for which the Joint Venture is
responsible, consisted of, among other things, numerous cracks in the floor
tile (primarily at the expansion joints), some water damage from the sprinkler
risers being discharged, breaks in some of the water mains as well as sewer
lines, masonry cracks at one of the lower level entrances, loss of glass in
both the elevators and escalators, numerous cracks in the drywall in the
ceiling, and asphalt, sidewalk and curbing cracks in the surrounding parking
lot areas. The Joint Venture has commenced restoring the Center and
anticipates that it will take approximately four months to complete.
The estimated cost at this point of the repairs for which the Joint
Venture is responsible is approximately $8.8 million. The majority of this
cost will be subject to recovery under the Joint Venture's earthquake
insurance policy after payment of the required deductible on the Joint
Venture's building and improvements and furniture and fixtures. This
deductible amounts to $1,705,300, of which the Partnership's share is $989,074
or 58%. The Joint Venture has filed an estimated claim for the above-
referenced $8.8 million with its insurer. In addition, the Joint Venture's
portion of the Center is insured for a twelve month period for loss of rents
due to business interruption caused by an earthquake. The deductible on this
coverage is $445,150, of which the Partnership's 58% share is $258,187. The
Partnership anticipates that it will pay for its share of the insurance
deductibles from its reserves without any material effect on its projected
operations for 1994.
The most significant structural damage to the Center occurred in the four
department stores. Each department store owner is continuing to evaluate all
of the problems within its store and each has commenced its initial clean-up.
However, it may take a period of several months before all of the department
stores are open. As of the date of this report, only Nordstrom's department
store has opened. At this time, it appears that the Robinson - May store has
sustained the most damage and, in fact, certain areas of the store have been
condemned by city inspectors. That store owner's preliminary expectation for
a reopening date is sometime during November 1994.
Although the majority of the Center's shops either have opened or will be
able to do so within the next few weeks, it is likely that their sales volumes
will be reduced as compared to prior years due to the fact that the most
significant draw to the Center for many shoppers is the department stores.
Some tenants have requested rent concessions and until the entire Center is
open and operating again, it is likely additional tenants may request rent
concessions in order to continue to operate during the period of time until
the department stores open. The Joint Venture anticipates reviewing these
requests on a tenant by tenant basis. No final decisions have been made on
any requests. One other consequence of the partial condemnation to the
Robinson - May store is that Robinson - May has taken back the approximately
25,000 square feet of that store which was leased to the Joint Venture in
1989. Pursuant to the terms of the lease agreement with the Joint Venture,
Robinson - May is allowed to terminate the lease in the event there is
substantial damage to its existing store (as defined). This would represent
the loss of approximately $150,000 in net income from subleases of the eight
tenants occupying this space. It is unclear at this time whether the Joint
Venture's insurance will cover this lost rent.
The damage that Topanga Plaza experienced was not unlike that experienced
by the other shopping centers in the area. One center, which was the subject
of many television news reports, sustained more significant damage than the
Center did and the owner is uncertain as to when it will be able to reopen the
mall. Another nearby center also sustained some damage to its mall area while
its major department stores sustained the most significant damage. To date,
that center's mall shops have begun to reopen; however, one department store
has announced it will not be rebuilding its store at this center and the
remaining department store has recently indicated it hopes to reopen within
the next few months.
There will be some adverse effect from this situation on the operations of the
Center in the near term, but it is too soon to tell how significant and long-
lasting the effect will be.
Item 7. Financial Statements and Exhibits
(a) Financial Statements. Not Applicable.
(b) Proforma financial information - Not Applicable.
(c) Exhibits - None.
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.
JMB INCOME PROPERTIES LIMITED - XII
By: JMB Realty Corporation
Managing General Partner
By: C. SCOTT NELSON
C. Scott Nelson, Vice President
Accounting Officer
Dated: February 28, 1994
