SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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) August 20, 1996
BALCOR REALTY INVESTORS 85-SERIES III
A REAL ESTATE LIMITED PARTNERSHIP
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Exact Name of Registrant
Illinois 0-14350
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State or other jurisdiction Commission file number
2355 Waukegan Road
Suite A200
Bannockburn, Illinois 36-3333344
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Address of principal I.R.S. Employer
executive offices Identification
Number
60015
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Zip Code
Registrant's telephone number, including area code:
(847) 267-1600
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ITEM 5. OTHER EVENTS
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a) Lakeville Resort Apartments
As previously reported, on April 23, 1996, a joint venture consisting of the
Partnership and an affiliate which owns Lakeville Resort Apartments, Petaluma,
California, contracted to sell the property to an unaffiliated party, ERP
Operating Limited Partnership, an Illinois limited partnership, for a sale
price of $27,200,000. The purchaser has exercised its option to assume the
existing first mortgage loan and has deposited an additional $200,000 in
earnest money for a total of $500,000. Pursuant to a letter agreement dated
August 20, 1996, the closing has been extended to a date no later than
September 19, 1996.
b) Shadowridge Apartments
As previously reported, on July 5, 1996, a joint venture consisting of the
Partnership and an affiliate which owns Shadowridge Apartments, Las Vegas,
Nevada, contracted to sell the property to an unaffiliated party, The Sherman
Oaks Limited Partnership, a Nevada limited partnership ("Sherman"), for a sale
price of $12,600,000. Sherman assigned its rights under the contract. The
sale closed on August 22, 1996 and title was conveyed to Sherman and Stanley
Canter as Trustee of The Stanley Canter Family Trust. From the proceeds of the
sale, the Joint Venture paid the outstanding balance of the first mortgage loan
of approximately $7,962,000, closing costs of approximately $38,000 and
$252,000 to an unaffiliated party as a brokerage commission. An affiliate of
the third party providing property management services for the property
received a fee for services in connection with the sale of the property of
$94,500. The Joint Venture received the remaining proceeds of approximately
$4,253,500 of which the Partnership's share is approximately $2,978,000.
c) North Hill Apartments
North Hill Apartments, De Kalb County, Georgia, is owned by a limited
partnership (the "Joint Venture"), the general partner of which is a joint
venture consisting of the Partnership and an affiliate. As previously
reported, on July 15, 1996, the Joint Venture contracted to sell the property
to an unaffiliated party, Jupiter Realty Corporation, an Illinois corporation,
for a sale price of $24,000,000. On August 29, 1996, the purchaser exercised
its option to terminate the agreement of sale and a closing of the sale will
not occur. Pursuant to the agreement of sale, the earnest money previously
deposited and interest accrued thereon will be returned to the purchaser.
d) Park Place Apartments, Phase II
As previously reported, on April 23, 1996, the Partnership contracted to sell
Park Place Apartments, Phase II, Plymouth, Minnesota, to an unaffiliated party,
ERP Operating Limited Partnership, an Illinois limited partnership, for a sale
price of $12,125,000. The sale closed on September 3, 1996. The purchaser
assumed the first mortgage loan which had an outstanding balance of
approximately $8,996,000 at closing. From the proceeds of the sale, the
Partnership paid legal fees of approximately $15,000 and $60,625 to an
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unaffiliated party as a brokerage commission. An affiliate of the third party
providing property management services for the property received a fee for
services in connection with the sale of the property of $90,938. Pursuant to
the agreement of sale, the purchaser paid all closing costs relating to the
sale, including title charges. The Partnership received approximately
$2,962,000 of remaining proceeds. Of such amount, $500,000 is being retained
and will not be available for use or distribution by the Partnership until 120
days after closing.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(A) FINANCIAL STATEMENTS AND EXHIBITS:
None
(B) PRO FORMA FINANCIAL INFORMATION:
None
(C) EXHIBITS:
(99) (a) Letter Agreement dated August 20, 1996 relating to the sale
of Lakeville Resort Apartments, Petaluma, California.
(b) Letter Agreement dated August 29, 1996 thereto relating to
the sale of North Hill Apartments, DeKalb County, Georgia.
No information is required under Items 1, 2, 3, 4, 6 and 8 and these items
have, therefore, been omitted.
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Signature
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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.
BALCOR REALTY INVESTORS 85-SERIES III
A REAL ESTATE LIMITED PARTNERSHIP
By: Balcor Partners-XVIII, an Illinois
general partnership, its general partner
By: The Balcor Company, a Delaware corporation,
a partner
By: /s/ Jerry M. Ogle
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Jerry M. Ogle, Vice President
and Secretary
Dated: September 13, 1996
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August 20, 1996
VIA FACSIMILE MAIL
Lakeville Investors The Balcor Company Daniel J. Perlman, Esq.
c/o The Balcor Company 2355 Waukegan Road Katten Muchin & Zavis
2355 Waukegan Road Suite A200 Suite 2100
Suite A200 Bannockburn, IL 60015 525 W. Monroe Street
Bannockburn, IL 60015 Attn: Al Lieberman Chicago, IL 60661
Attn: Ilona Adams
Re: Agreement of Sale, dated as of the 23rd day of April, 1996 (the
"Agreement") between Lakeville Investors, as Seller, and ERP
Operating Limited Partnership, as Purchaser, for the purchase of
Lakeville Apartments, Petaluma, California (the "Property").
Dear Ms. Adams and Messrs. Lieberman and Perlman:
Purchaser hereby requests that the Agreement be modified to change
"September 3, 1996" in the seventh line of Section 9 thereof to "September 19,
1996". Please acknowledge Seller's acceptance of this modification to the
Agreement by executing this letter in the space provided below and returning it
via facsimile mail to Purchaser.
ERP OPERATING LIMITED PARTNERSHIP,
an Illinois limited partnership
By: Equity Residential Properties Trust,
a Maryland Real Estate Investment
Trust, its general partner
By: /s/ Shelley L. Dunck
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Shelley L. Dunck
Vice President
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Approved and Accepted this 21 day of August, 1996
LAKEVILLE INVESTORS
By: Balcor Realty Investors 85-Series III A Real
Estate Limited Partnership, a partner
By: Balcor Partners-XVIII, an Illinois
general partnership, its general partner
By: The Balcor Company, a Delaware
corporation, a general partner
By: /s/ Jerry M. Ogle
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Name: Jerry M. Ogle
Title: Vice President and Secretary
By: Lakeville Partners, an Illinois limited partnership,
a partner
By: Balcor Partners-XIX, an Illinois general partnership,
its general partner
By: The Balcor Company, a Delaware
corporation, a general partner
By: /s/ Jerry M. Ogle
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Name: Jerry M. Ogle
Title: Vice President and Secretary
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Law Offices
JENNER & BLOCK
A Partnership including Professional Corporations
One IBM Plaza
Chicago, Illinois 60611
(312) 222-9350
(312) 527-0484 FAX
August 29, 1996
VIA FACSIMILE
N.H. Associates
c/o The Balcor Company
Bannockburn Lake Office Plaza
2355 Waukegan Road
Suite A-200
Bannockburn, Illinois 60015
Attn: Ilona Adams
Re: Agreement of Sale dated July 15, 1996 by and between
Jupiter Realty Corporation ("Purchaser") and N.H.
Associates ("Seller")
Dear Ms. Adams:
On behalf of the Purchaser, this letter will serve as Purchaser's
termination notice to Seller required under Paragraph 7.1 of the Agreement. By
copy of this letter, I am requesting on behalf of Purchaser that Near North
National Title Insurance Company terminate the Escrow Agreement and refund the
Earnest Money, together with all interest accrued thereon, to Purchaser.
Should you have any questions with respect to this matter, please call me
or have your counsel call me.
Very truly yours,
/s/ Donald S. Horvath
Donald S. Horvath
cc: Alan Lieberman (via facsimile)
Daniel J. Perlman, Esq (via facsimile)
Gregory Davine (via facsimile)
Jay Luzuriaga (via facsimile)
Near North Title Corporation, Attn: Jan Jerndt (via facsimile)
Donald I. Resnick, Esq.
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