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Previous: CAPSTEAD MORTGAGE CORP, 424B5, 1996-04-09 |
Next: CONSOLIDATED STORES CORP /DE/, 8-K, 1996-04-09 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------------
SCHEDULE 14D-1
TENDER OFFER STATEMENT PURSUANT TO SECTION 14(d)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)
-----------------------------
BALCOR REALTY INVESTORS 85--SERIES III,
A REAL ESTATE LIMITED PARTNERSHIP
(Name of Subject Company)
METROPOLITAN ACQUISITION VII, L.L.C.
MAP VII ACQUISITION CORPORATION
INSIGNIA FINANCIAL GROUP, INC.
(Bidders)
LIMITED PARTNERSHIP INTERESTS
(Title of Class of Securities)
NONE
(Cusip Number of Class of Securities)
-----------------------------
JOHN K. LINES, ESQ.
GENERAL COUNSEL AND SECRETARY
INSIGNIA FINANCIAL GROUP, INC.
ONE INSIGNIA FINANCIAL PLAZA
GREENVILLE, SOUTH CAROLINA 29602
(803) 239-1675
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications on Behalf of Bidders)
-----------------------------
COPY TO:
JOHN A. HEALY, ESQ.
ROBERT E. KING, JR., ESQ.
ROGERS & WELLS
200 PARK AVENUE
NEW YORK, NEW YORK 10166
(212) 878-8000
-----------------------------
Index to Exhibits Located at Page 4
<PAGE> 2
This Amendment No. 2 amends and supplements the Tender Offer Statement
on Schedule 14D-1 originally filed with the Commission on March 11, 1996, as
amended by Amendment No. 1 filed with the Commission on April 2, 1996 (the
"Schedule") by Metropolitan Acquisition VII, L.L.C. (the "Purchaser"), MAP VII
Acquisition Corporation and Insignia Financial Group, Inc., relating to the
tender offer of the Purchaser to purchase up to 17,728 of the outstanding
limited partnership interests ("Interests") of Balcor Realty Investors 85 --
Series III, a Real Estate Limited Partnership, an Illinois limited partnership,
at $225.00 per Interest, net to the seller in cash, upon the terms and subject
to the conditions set forth in the Offer to Purchase dated March 11, 1996 and
the related Assignment of Partnership Interest (copies of which were filed as
Exhibits (a)(2) and (a)(3), respectively, to the Schedule). Unless the context
otherwise requires, capitalized terms used but not defined in this Amendment
No. 2 have the meanings ascribed to them in the Schedule.
Item 10 of the Schedule is hereby amended and supplemented to include
the following information.
ITEM 10. ADDITIONAL INFORMATION.
(f) The Offer has been extended to 5:00 p.m., New York time, on
Friday, April 12, 1996. On Monday, April 8, 1996, the Purchaser issued a press
release announcing such extension and reporting that approximately 2,362
Interests has been tendered pursuant to the Offer as of the close of business
on April 8, 1996. A copy of the press release has been filed as Exhibit (a)(5)
to this Amendment No. 2 and is incorporated herein by reference in its
entirety.
Item 11 of the Schedule is hereby supplemented to include the exhibits
listed below.
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS.
(a)(5) Text of press release issued by the Purchaser on April 8, 1996.
(f)(1) Excerpts from the report, dated November 27, 1995, of Alex.
Brown & Sons Incorporated.
2
<PAGE> 3
SIGNATURES
After due inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: April 9, 1996
METROPOLITAN ACQUISITION VII, L.L.C.
By: MAP VII ACQUISITION CORPORATION,
its managing member
By: /s/ JEFFREY L. GOLDBERG
-----------------------------------
Jeffrey L. Goldberg
Vice President
MAP VII ACQUISITION CORPORATION
By: /s/ JEFFREY L. GOLDBERG
-----------------------------------
Jeffrey L. Goldberg
Vice President
INSIGNIA FINANCIAL GROUP, INC.
By: /s/ FRANK M. GARRISON
-----------------------------------
Frank M. Garrison
Executive Managing Director
3
<PAGE> 4
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<S> <C>
(a)(5) Text of press release issued by the Purchaser on April 8, 1996.
(f)(1) Excerpts from the report, dated November 27, 1995, of Alex. Brown & Sons Incorporated.
</TABLE>
4
<PAGE> 1
EXHIBIT 99.(a)(5)
METROPOLITAN ACQUISITION VII, L.L.C.
One Insignia Financial Plaza
Greenville, SC 29602
FOR IMMEDIATE RELEASE
INSIGNIA AFFILIATE EXTENDS TENDER OFFERS FOR LIMITED
PARTNERSHIP INTERESTS IN EIGHT BALCOR LIMITED PARTNERSHIPS
GREENVILLE, SOUTH CAROLINA, April 8, 1996 - Metropolitan Acquisition
VII, L.L.C. today announced that it has extended the expiration date of its
outstanding tender offers for limited partnership interests in the following
partnerships: Balcor Realty Investors Ltd. -- 82, Balcor Realty Investors --
83, Balcor Realty Investors -- 84, Balcor Realty Investors 85 -- Series I,
Balcor Realty Investors 85 -- Series III, Balcor Realty Investors 86 -- Series
I, Balcor Equity Properties Ltd. -- VIII, and Balcor Equity Properties -- XII.
The expiration date for each tender offer has been extended to 5:00 p.m., New
York time, on Friday, April 12, 1996. The offers were previously scheduled to
expire at midnight on Friday, April 5, 1996.
Metropolitan reported that as of the close of business on April 5,
1996, approximately 2,867 interests had been tendered pursuant to the BRI 82
offer, approximately 3,163 interests had been tendered pursuant to the BRI 83
offer, approximately 7,064 interests had been tendered pursuant to the BRI 84
offer, approximately 2,272 interests had been tendered pursuant to the BRI
85-I offer, approximately 2,362 interests had been tendered pursuant to the
BRI 85-III offer, approximately 1,452 interests had been tendered pursuant to
the BRI 86-I offer, approximately 1,362 interests had been tendered pursuant to
the BEP VIII offer, and approximately 2,346 interests had been tendered
pursuant to the BEP XII offer.
Metropolitan is a newly-formed Delaware limited liability company. The
managing member of Metropolitan is a wholly-owned subsidiary of Insignia
Financial Group, Inc. (NYSE: IFS). For further information, please contact
either The Herman Group, Inc. at (800) 647-2543 or Beacon Hill Partners, Inc. at
(800) 253-3814, which are acting as Information Agents for the offers.
# # #
<PAGE> 1
BALCOR
BRI-85 III
LIMITED PARTNERSHIP VALUATION SUMMARY
<TABLE>
<CAPTION>
BALANCE SHEET RECAP WORKING CAPITAL AT SALE DATE
- ------------------- ----------------------------
($000's)
4th Qtr 1995 Balcor
09/30/95 1995 Projection
-------- ------- -----------
<S> <C> <C> <C> <C>
Current Assets:
Cash & Equivalents 3,023 Cash Flow Activity:
Restr Investment 0 Op cash flow thru sale date 306 1,223 use 1/4 of Balcor's estimate for 1995
Escrow Deposits 1,531 Sale proceeds none in 4th quarter
Accounts Receivable 50 Refinance proceeds none in 4th quarter
Prepaid Expenses 370 Collateral activity incl in beg working capital
Other 0 Other cash receipt/pmt incl in beg working capital
------ Distributions (443) use actual 4th quarter distribution
4,974 ----- -----
Current Liabilities: (137) 1,223
Accounts Payable 89
Due to Affiliates 20 9/30/95 Working Capital 4,369
Accrued Liabilities 170 Adjust for Joint Venture Interest 621 40% of Lakeville escrows, less 25%
North Hill's
Security Deposits 326 Sale Date Working Capital 4,852
Other
------
605
------
Net Working Capital 4,369
======
Mortgage N/P - Affiliate 0
Mortgage N/P 50,550
<CAPTION>
LIQUIDATION VALUE
- -----------------
Cap Sales Cost of Debt Net Sales BRI-85 III PrePmt Net Sales BRI-85 III
Property Rate Value Sale Payoff Proceeds Share Penalty Proceeds Share
- -------- ---- ----- ------- ------ --------- ------ ------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shadowridge 10.00 11,295 (226) (8,074) 2,996 2,097 0 2,996 2,097
North Hill 10.25 21,199 (424) (18,753) 4,022 3,017 (2,300) 1,722 1,291
Park Place II 10.00 10,424 (208) (9,035) 1,181 1,181 (2,094) 0 0
Lakeville Resort 9.75 26,331 (527) (20,871) 4,933 1,973 (4,931) 2 1
Howell Station 10.00 10,265 (205) (6,538) 3,522 3,522 (65) 3,457 3,457
Country Ridge 10.00 15,471 (309) (8,803) 6,359 6,359 (229) 6,129 6,129
------ ------- ------- ------ ------ ------ ------ ------
Totals 94,986 (1,900) (70,074) 23,013 18,148 (9,620) 14,306 12,975
Working Capital Balance 4,852 4,852
------ ------
Total Liquidation Proceeds 23,001 17,828
GP Share Proceeds 0 0% 0
LP Share Proceeds 23,001 100% 17,828
Per Unit ($) 389 59,092 units 302
% of Original Capital 39% $1,000 original 30%
unit cost
</TABLE>
<PAGE> 2
BALCOR
BRI-85 III
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
- -------------------- ----------------------
<S> <C>
Property Name Shadowridge Date of Sale 12/31/95
Location Las Vegas, NV Repl Res per unit 400
Type Apartments Cap Rate 10.00
Constructed 1983 Income Growth 4.0%
Units 312 Expense Growth 3.0%
Ownership % 70%
12/95 Debt Balance 8,074 Asset Mgr Don Price
Prepayment Penalty none Brkr Contact Kevin Buckley 702-798-9988
Property Tax Rate 0.79%
<CAPTION>
OPERATING RESULTS
- -----------------
($000'S) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Rental Income 1,695 1,832 1,993 1,601 1,921 1,998
Service Income 75 45 44 33 40 41
Other Income 39 31 31 38 46 47
----- ----- ----- ----- ----- -----
Total Income 1,809 1,908 2,068 1,672 2,006 2,087
Income Growth 5.5% 8.4% -3.0% 4.0%
PER UNIT
--------
Operating Expenses 564 618 620 562 674 695 2,226
Expense Growth 9.6% 0.3% 65 0.8% 3.0%
Property Taxes 104 100 99 74 89 89 286
Insurance 21 59 47 51 47 48 155
----- ----- ----- ----- ----- -----
Total Expenses 689 777 766 752 810 832
----- ----- ----- ----- -----
Net Operating Income 1,120 1,131 1,302 920 1,196 1,254
Capital Expenditures 183 152 261 260
<CAPTION>
Value
W/Prepmt
Penalty
--------
<S> <C> <C>
Replacement Reserve 125
-------
NOI for cap rate valuation 1,130
Valuation Conclusion 11,295 11,295
Cost of Sale (2%) (226) (228)
Prepayment Penalty 0
Mortgage Payoff (8,074) (8,074)
------- -------
Net Sales Proceeds 2,996 2,996
------- -------
BRI-85 III Share of Proceeds 2,097 2,097
======= =======
<CAPTION>
COMP ANALYSIS
- -------------
Property # Units Sale Date Price Per Unit
- -------- ------- --------- ----- --------
<S> <C> <C> <C> <C>
Shadowridge 312 Dec-95 11,295 36
Emerald Bay 336 Apr-91 13,850 41
Silver Palms 200 Dec-92 8,000 40
Pelican Cove 488 Aug-92 20,057 41
Anchor Village 896 Oct-94 39,250 44
</TABLE>
<PAGE> 3
BALCOR
BRI-85 III
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
- -------------------- ----------------------
<S> <C>
Property Name North Hill Date of Sale 12/31/95
Location Atlanta, GA Repl Res per unit 450
Type Apartments Cap Rate 10.25
Constructed 1985 Income Growth 3.0%
Units 420 Expense Growth 3.0%
Ownership % 75%
12/95 Debt Balance 16,753 Asset Mgr Michael Becker 708-317-4305
Prepayment Penalty 2,300 mly Brkr Contact Kelly T. Lindsley
Property Tax Rate 1.66% The Worthing Companies
404-399-6279
<CAPTION>
OPERATING RESULTS
- -----------------
($000'S) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
-------------------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Rental Income 2,996 3,167 3,257 2,847 3,416 3,519
Service Income 23 28 30 24 29 30
Other Income 42 52 52 48 58 59
----- ----- ----- ----- ----- -----
Total Income 3,061 3,247 3,339 2,919 3,503 3,608
Income Growth 6.1% 2.6% 4.9% 3.0%
per unit
--------
Operating Expenses 716 756 770 650 780 803 1,913
Expense Growth 5.0% 1.0% 1.3% 3.0%
Property Taxes 289 285 275 141 169 352 838
Insurance 40 107 88 101 88 91 216
----- ----- ----- ----- ----- -----
Total Expenses 1,045 1,148 1,133 892 1,037 1,246
----- ----- ----- ----- -----
Net Operating Income 2,016 2,099 2,206 2,027 2,466 2,362
Capital Expenditures 198 231 336 188
<CAPTION>
--------
Value
W/Prepmt
Penalty
--------
<S> <C> <C>
Replacement Reserve 189
NOI for cap rate valuation 2,173
Valuation Conclusion 21,199 21,199
Cost of Sale (424) (424)
Prepayment Penalty (2,300)
Mortgage Payoff (16,753) (16,753)
------- -------
Net Sales Proceeds 4,022 1,722
------- -------
BRI-85 III Share of Proceeds 3,017 1,291
------- -------
<CAPTION>
COMP ANALYSIS
- -------------
Property # Units Sale Date Price Per Unit
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
North Hill 420 Dec-95 21,199 50
Gentry Walk 227 Mar-95 11,975 53
Winters Creek 200 Sept-95 7,535 37
</TABLE>
<PAGE> 4
BALCOR
BRI-85 III
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
- -------------------- ----------------------
<S> <C> <C> <C>
Property Name Park Place II Date of Sale 12/31/95
Location Plymouth, MN Repl Res per unit 400
Type Apartments Cap Rate 10.00
Constructed 1986 Income Growth 3.0%
Units 250 Expense Growth 3.0%
Ownership % 100%
12/95 Debt Balance 9,035 Asst Mgr Gregg Handrich
Prepayment Penalty 2,094 locked, use mly Brkr Contact Bob Fransen
Property Tax Rate 4.08%
<CAPTION>
OPERATING RESULTS
- -----------------
($000'S) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PRO FORMA
---------------------------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Rental Income 1,869 1,935 2,023 1,736 2,083 2,146
Service Income 24 24 24 22 26 27
Other Income 21 13 15 19 23 23
----- ----- ----- ----- ----- -----
Total Income 1,914 1,972 2,062 1,777 2,132 2,196
Income Growth 3.0% 4.0% 3.4% 3.0%
per unit
--------
Operating Expenses 532 551 561 454 545 561 2,245
Expense Growth 3.8% 1.6% -2.9% 3.0%
Property Taxes 379 532 269 277 332 425 1.701
Insurance 23 38 52 96 66 67 270
----- ----- ----- ----- ----- -----
Total Expenses 934 1,121 882 827 943 1,054
----- ----- ----- ----- -----
Net Operating Income 980 851 1,180 950 1,190 1,142
Capital Expenditures 100 116 95 75
<CAPTION>
Value
w/Prepmt
Penalty
-------
<S> <C> <C>
Replacement Reserve 100
NOI for cap rate valuation -------
1,042
Valuation Conclusion 10,424 10,424
Cost of Sale (2%) (208) (208)
Prepayment Penalty (2,094)
Mortgage Payoff (9,035) (9,035)
------- -------
Net Sales Proceeds 1,181 0
------- -------
BRI-85 III Share of Proceeds 1,181 0
------- -------
<CAPTION>
COMP ANALYSIS
- -------------
Property # Units Sale Date Price Per Unit Comments
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Park Place II 250 Dec-95 10,424 42
Park Side 213 Aug-95 9,500 45
Southhampton 115 Mar-95 5,900 51
Quail Ridge 108 Jun-95 4,955 46
Hazeltine Shores 166 Jan-94 7,500 45
Lakewood Hills 88 Nov-94 3,605 41
Southwirth Park 60 Mar-94 4,200 70
</TABLE>
<PAGE> 5
BRI-85 III
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
- -------------------- ----------------------
<S> <C>
Property Name Lakeville Resort Date of Sale 12/31/95
Location Petaluma, CA Repl Res per unit 350
Type Apartments Cap Rate 9.75
Constructed 1984 Income Growth 3.0%
Units 492 Expense Growth 3.0%
Ownership % 40%
12/95 Debt Balance 20,871 Asset Mgr Reid Reynolds 708-317-4395
Prepayment Penalty 4,931 locked, use mly Brkr Contact Rick Limpert
Property Tax Rate 1.12% Grubb & Ellis
209-432-5500
<CAPTION>
OPERATING RESULTS
- -----------------
($000'S)
ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
------ ------ ------ ------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Rental Income 3,803 3,774 3,852 3,265 3,918 4,036
Service Income 52 84 82 70 84 87
Other Income 70 44 45 30 36 37
----- ----- ----- ----- ----- -----
Total Income 3,925 3,902 3,979 3,365 4,038 4,159
Income Growth 0.8% 2.0% 1.5% 3.0%
per unit
--------
Operating Expenses 959 979 1,021 780 936 964 1,960
Expense Growth 2.1% 4.3% -0.3% 3.0%
Property Taxes 279 293 292 153 184 295 599
Insurance 45 169 156 172 156 161 327
----- ----- ----- ----- ----- -----
Total Expenses 1,283 1,441 1,469 1,105 1,276 1,420
----- ----- ----- ----- -----
Net Operating Income 2,642 2,461 2,510 2,260 2,762 2,739
Capital Expenditures 199 422 197 177
<CAPTION>
Value
w/Prepmt
Penalty
--------
<S> <C> <C>
Replacement Reserve 172
NOI for cap rate valuation -------
2,567
Valuation Conclusion 26,331 26,331
Cost of Sale (2%) (527) (527)
Prepayment Penalty (4,931)
Mortgage Payoff (20,871) (20,871)
------- -------
Net Sales Proceeds 4,933 2
------- -------
BRI-85 III Share of Proceeds 1,973 1
------- -------
<CAPTION>
COMP ANALYSIS
- -------------
Property # Units Sale Date Price Per Unit
- -------- ------- -------- ----- --------
<S> <C> <C> <C> <C>
Lakeville Resort 492 Dec-95 26,331 54
Shadow Creek 188 Mar-94 12,500 66
CrossBrook 226 Nov-94 12,900 57
</TABLE>
<PAGE> 6
BALCOR
BRI-85 III
ASSET VALUATION SUMMARY
<TABLE>
<CAPTION>
PROPERTY INFORMATION MAJOR SALE ASSUMPTIONS
- -------------------- ----------------------
<S> <C>
Property Name Howell Station Date of Sale 12/31/95
Location Duluth, GA Repl Res per unit 400
Type Apartments Cap Rate 10.00
Constructed 1985 Income Growth 4.0%
Units 228 Expense Growth 3.0%
Ownership % 100%
12/95 Debt Balance 6,538 Asset Mgr Michael Becker 708-317-4305
Prepayment Penalty 65 1.00% Brkr Contact Kelly T. Lindsley 404-698-9770
Property Tax Rate 1.70% The Worthing Companies
Fax- 404-399-6279
<CAPTION>
OPERATING RESULTS
- -----------------
($000'S) ACTUAL ACTUAL BUDGET YTD ANNUALIZED VALUATION
1993 1994 1995 Oct-95 Oct-95 PROFORMA
-------------------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Rental Income 1,490 1,610 1,665 1,434 1,721 1,790
Service Income 20 18 18 14 17 17
Other Income 16 24 22 33 40 41
----- ----- ----- ----- ----- -----
Total Income 1,526 1,652 1,705 1,481 1,777 1,848
Income Growth 8.3% 3.2% 4.2% 4.0%
per unit
--------
Operating Expenses 507 490 493 414 497 512 2,244
Expense Growth -3.4% 0.6% 0.8% 3.0%
Property Taxes 269 150 147 66 79 175 765
Insurance 19 62 43 74 43 44 194
----- ----- ----- ----- ----- -----
Total Expenses 795 702 683 554 619 731
----- ----- ----- ----- -----
Net Operating Income 731 950 1,022 927 1,158 1,118
Capital Expenditures 122 163 143 98
<CAPTION>
Value
W/Prepmt
Penalty
----------
<S> <C> <C>
Replacement Reserve 91
NOI for cap rate valuation -------
1,027
Valuation Conclusion 10,265 10,265
Cost of Sale (2%) (205) (205)
Prepayment Penalty (65)
Mortgage Payoff (6,538) (6,538)
------- --------
Net Sales Proceeds 3,522 3,457
------- --------
BRI-85 III Share of Proceeds 3,522 3,457
------- --------
<CAPTION>
COMP ANALYSIS
- -------------
Property # Units Sale Date Price Per Unit
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Howell Station 228 Dec-95 10,265 45
Gwinnett Crossing 260 Apr-95 10,500 40
Gwinnett Square 239 Mar-95 9,235 39
Summerchase 240 Nov-95 12,065 50
</TABLE>
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