SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
- - ---- OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 25, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
- - ---- OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-14941
CAMBRIDGE ADVANTAGED
PROPERTIES II LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Delaware 13-3330195
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
625 Madison Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212)421-5333
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>
PART I
Item 1. Financial Statements
CAMBRIDGE ADVANTAGED PROPERTIES II
LIMITED PARTNERSHIP AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
============= =============
June 25, March 25,
1997 1997
------------- -------------
<S> <C> <C>
ASSETS
Property and equipment - net of
accumulated depreciation of
$43,945,448 and $43,124,557,
respectively $ 76,944,003 $ 77,764,894
Cash and cash equivalents 1,303,486 1,225,369
Cash - restricted for tenants'
security deposits 582,707 572,624
Mortgage escrow deposits 1,972,144 1,895,569
Deferred costs, net of accumulated
amortization of $892,704 and
$841,465, respectively 2,270,337 2,330,143
Prepaid expenses and other assets 494,282 424,003
------------- -------------
Total assets $ 83,566,959 $ 84,212,602
============= =============
LIABILITIES AND PARTNERS' DEFICIT
Liabilities
Mortgage notes payable $ 98,147,831 $ 98,340,680
Accounts payable, accrued
expenses and other liabilities 7,930,247 7,573,750
Tenants' security deposits payable 582,707 572,624
Due to general partners of
subsidiaries and their affiliates 1,587,599 1,731,240
Due to general partners and
affiliates (Note 2) 4,261,336 4,103,650
------------- -------------
Total liabilities 112,509,720 112,321,944
------------- -------------
Minority interest 5,041,457 5,111,554
------------- -------------
Commitments and contingencies
(Note 4)
Partners' deficit:
Limited partners (33,326,829) (32,571,140)
General partners (657,389) (649,756)
------------- -------------
Total partners' deficit (33,984,218) (33,220,896)
------------- -------------
Total liabilities and partners'
deficit $ 83,566,959 $ 84,212,602
============= =============
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
2
<PAGE>
CAMBRIDGE ADVANTAGED PROPERTIES II LIMITED PARTNERSHIP AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
=============================
Three Months Ended
June 25,
-----------------------------
1997 1996*
-----------------------------
Revenues
Rentals, net $ 4,269,647 $ 4,403,430
Other 189,190 332,214
----------- -----------
Total revenues 4,458,837 4,735,644
----------- -----------
Expenses
Administrative and
management 740,565 877,913
Administrative and management-
related parties (Note 2) 423,369 232,652
Operating 354,005 358,807
Repairs and maintenance 524,837 895,970
Taxes and insurance 505,843 563,500
Interest 1,867,562 2,298,911
Depreciation and amortization 872,130 1,014,864
----------- -----------
Total expenses 5,288,311 6,242,617
----------- -----------
Loss before minority interest
and extraordinary item (829,474) (1,506,973)
Minority interest in loss of
subsidiaries 11,152 12,843
----------- -----------
Loss before extraordinary item (818,322) (1,494,130)
Extraordinary item- forgiveness
of indebtedness income (Note 3) 55,000 0
----------- -----------
Net loss $ (763,322) $(1,494,130)
=========== ===========
* Reclassified for comparative purposes
See Accompanying Notes to Consolidated Financial Statements
3
<PAGE>
CAMBRIDGE ADVANTAGED PROPERTIES II LIMITED PARTNERSHIP AND SUBSIDIARIES
Consolidated Statement of Changes in Partners' Deficit
(Unaudited)
==================================================
Limited General
Total Partners Partners
--------------------------------------------------
Balance-
March 26, 1997 $(33,220,896) $(32,571,140) $ (649,756)
Net income-three
months ended
June 25, 1997 (763,322) (755,689) (7,633)
-------- -------- ------
Balance-
June 25, 1997 $(33,984,218) $(33,326,829) $ (657,389)
============ ============ ============
See Accompanying Notes to Consolidated Financial Statements
4
<PAGE>
CAMBRIDGE ADVANTAGED PROPERTIES II
LIMITED PARTNERSHIP AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Increase in Cash and Cash Equivalents
(Unaudited)
============================
Three Months Ended
June 25,
----------------------------
1997 1996
----------------------------
Cash flows from operating activities:
Net loss $ (763,322) $(1,494,130)
----------- -----------
Adjustments to reconcile net loss to
net cash provided by
operating activities:
Extraordinary item-forgiveness of
indebtedness (Note 3) (55,000) 0
Depreciation and amortization 872,130 1,014,864
Minority interest in loss of
subsidiaries (11,152) (12,843)
Increase in cash-restricted
for tenants' security deposits (10,083) (10,466)
Increase in mortgage
escrow deposits (76,575) (834,646)
(Increase) decrease in prepaid
expenses and other assets (70,279) 93,681
Increase in accounts payable,
accrued expenses and other
liabilities 356,497 1,442,006
Increase in tenants'
security deposits payable 10,083 16,801
Increase in due to general
partners of subsidiaries and their
affiliates 0 4,146
Decrease in due to general partners
of subsidiaries and their affiliates (143,641) 0
Increase in due to general partners
and affiliates 212,686 38,984
----------- -----------
Total adjustments 1,084,666 1,752,527
----------- -----------
Net cash provided by operating
activities 321,344 258,397
----------- -----------
See Accompanying Notes to Consolidated Financial Statements
5
<PAGE>
CAMBRIDGE ADVANTAGED PROPERTIES II
LIMITED PARTNERSHIP AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Increase in Cash and Cash Equivalents
(continued)
(Unaudited)
============================
Three Months Ended
June 25,
1997 1996
----------------------------
Net cash from operating activites
brought forward 321,344 258,397
----------- -----------
Cash flows from financing activities:
Principal payments of mortgage
notes payable (192,849) (164,965)
Decrease in capitalization of
consolidated subsidiaries
attributable to minority interest (58,945) 0
Decrease (increase) in deferred
costs 8,567 (91,748)
----------- -----------
Net cash used in financing
activities (243,227) (256,713)
----------- -----------
Net increase in cash and
cash equivalents 78,117 1,684
Cash and cash equivalents-
beginning of period 1,225,369 1,022,522
----------- -----------
Cash and cash equivalents-
end of period $ 1,303,486 $ 1,024,206
=========== ===========
Supplemental disclosure of noncash
financing activities:
Forgiveness of Indebtedness (Note 3):
Decrease in due to general
partners and affiliates (55,000) 0
See Accompanying Notes to Consolidated Financial Statements
6
<PAGE>
CAMBRIDGE ADVANTAGED PROPERTIES II
LIMITED PARTNERSHIP AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 25, 1997
(Unaudited)
Note 1 - General
The consolidated financial statements for the three months ended June 25, 1997
and 1996 include the accounts of Cambridge Advantaged Properties II Limited
Partnership, (the "Partnership"), and eleven and twelve subsidiary partnerships
("subsidiaries", "subsidiary partnerships" or "Local Partnerships"),
respectively. The Partnership is a limited partner, with an ownership interest
of 98% in each of the subsidiary partnerships. Through the rights of the
Partnership and/or a General Partner, which General Partner has a contractual
obligation to act on behalf of the Partnership, to remove the general partner of
the subsidiary local partnerships and to approve certain major operating and
financial decisions, the Partnership has a controlling financial interest in the
subsidiary local partnerships.
The Partnership's fiscal quarter ends June 25. All subsidiaries have fiscal
quarters ending March 31. Accounts of the subsidiary partnerships have been
adjusted for intercompany transactions from April 1 through June 25.
All intercompany accounts and transactions have been eliminated in
consolidation.
Increases (decreases) in the capitalization of consolidated subsidiaries
attributable to minority interest arise from cash contributions from and cash
distributions to the minority interest partners.
Losses attributable to minority interests which exceed the minority interests'
investment in a subsidiary have been charged to the Partnership. Such losses
aggregated approximately $200 and $16,100 for the three months ended June 25,
1997 and 1996, respectively. The Partnership's investment in each subsidiary is
equal to the respective subsidiary's partners' equity less minority interest
capital, if any.
The unaudited financial statements have been prepared on the same basis as the
audited financial statements included in the Partnership's Form 10-K for the
year ended March 25, 1997. In the opinion of the general partners, the
accompanying unaudited financial statements contain all adjustments (consisting
only of normal recurring adjustments) necessary to present fairly the financial
position of the Partnership as of June 25, 1997 and the results of operations
and cash flows for the three months ended June 25, 1997 and 1996, respectively.
However, the operating
7
<PAGE>
CAMBRIDGE ADVANTAGED PROPERTIES II
LIMITED PARTNERSHIP AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 25, 1997
(Unaudited)
Note 1 - General (continued)
results for the three months ended June 25, 1997 may not be indicative of the
results for the year.
Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted. It is suggested that these consolidated financial statements
should be read in conjunction with the financial statements and notes thereto
included in the Partnership's March 25, 1997 Annual Report on Form 10-K.
As of June 25, 1997, several subsidiary partnerships are experiencing financial
difficulties. There is substantial doubt about the ability of the Partnership
and some of the subsidiary partnerships to continue as going concerns.
Recoverability of a significant portion of the Partnership's investments will
depend upon material improvements in the ability of each subsidiary partnership
to meet its debt service obligations. In addition, the level of cash
distributions provided to the Partnership by the subsidiary partnerships have
not been sufficient, and may not be sufficient in the future, to cover the
Partnership's operating expenses. As a result, the Partnership has required, and
may in the future require, funding from other sources for such purposes. The
consolidated financial statements do not include any adjustments that might
result from the outcome of these uncertainties. See Note 4 and the Partnership's
March 25, 1997 Annual Report on Form 10-K for management's intentions.
Note 2 - Related Party Transactions
One of the general partners of the Partnership, Related and Cambridge Associates
Limited Partnership ("Related and Cambridge Associates"), has a 1% interest as a
special limited partner in each of the subsidiary partnerships.
Whitney Management Corp., an affiliate of the Related General Partner, is the
general partner of one and managing agent of four properties.
Pursuant to a Completion Guarantee, which was eliminated in connection with the
refinancing of the mortgage debt of Suncreek on April 15, 1996, the local
general partner of Suncreek funded operating deficits in the amounts of
approximately $0 and $76,000 for the three months ended June 25, 1997 and 1996,
respectively.
8
<PAGE>
CAMBRIDGE ADVANTAGED PROPERTIES II
LIMITED PARTNERSHIP AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 25, 1997
(Unaudited)
Note 2 - Related Party Transaction (continued)
The costs incurred to related parties for the three months ended June 25, 1997
and 1996 were as follows:
Three Months Ended
June 25,
---------------------------
1997 1996
---------------------------
Partnership
management
fees (a) $191,250 $ 15,000
Expense reimburse-
ment (b) 31,036 19,379
Property manage-
ment fees (c) 198,083 195,273
Local adminis-
trative fee (d) 3,000 3,000
-------- --------
$423,369 $232,652
======== ========
(a) After all other expenses of the Partnership are paid, an annual partnership
management fee of up to .5% of invested assets is payable to the Partnership's
general partners and affiliates. Partnership management fees have been charged
to operations and are included in administrative and management-related parties
expenses. Partnership management fees owed to the general partners amounting to
approximately $1,414,000 and $1,222,000 were accrued and unpaid as of June 25,
1997 and March 25, 1997, respectively.
(b) An affiliate of the Related General Partner performs services for the
Partnership which include, but are not limited to: accounting and financing
management, registrar, transfer and assignment functions, asset management,
investor communications, printing and other administrative services. The amount
of reimbursement from the Partnership is limited by the provisions of the
Partnership Agreement. Another affiliate of the Related General Partner performs
asset monitoring for the Partnership. These services include site visits and
evaluations of the subsidiary partnerships' performance. Expense reimbursements
and asset monitoring fees owed to the Related General Partner amounting to
approximately $489,000 and $458,000 were accrued and unpaid as of June 25, 1997
and March 25, 1997, respectively.
(c) Property management fees paid by subsidiary partnerships amounted to
$209,797 and $214,960 for the three months ended June 25, 1997 and 1996,
respectively. Of these fees $106,399 and
9
<PAGE>
CAMBRIDGE ADVANTAGED PROPERTIES II
LIMITED PARTNERSHIP AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 25, 1997
(Unaudited)
Note 2 - Related Party Transaction (continued)
$107,315 were incurred to affiliates of the subsidiary partnerships. In
addition, $140,261 and $141,383 were incurred to affiliates of the Related
General Partner for the three months ended June 25, 1997 and 1996. Of such
amounts incurred to affiliates of the Related General Partner, $48,577 and
$53,425 are also included in amounts incurred to affiliates of the subsidiary
partners because they were incurred to affiliates of both.
(d) Related and Cambridge Associates, a limited partner of the subsidiary
partnerships, is entitled to receive a local administrative fee of up to $2,500
per year from each subsidiary partnership.
Note 3 - Extraordinary Item
On May 2, 1997, amounts due to the Related General Partner totaling $55,000 were
forgiven resulting in forgiveness of indebtedness income.
Note 4 - Commitments and Contingencies
The following disclosures include changes and/or additions to disclosures
regarding the subsidiary partnerships which were included in the Partnership's
Annual Report on Form 10-K for the period ended March 25, 1997.
Galveston-Stewart's Landing, Ltd.
Galveston-Stewart's Landing, Ltd. ("Galveston") has sustained continued
operating deficits and has a net partners' deficiency of approximately
$5,774,000 at June 25, 1997. Galveston's mortgage note was originally due to
HUD. During 1995, HUD assigned and transferred the mortgage note to Beal Bank.
On December 14, 1995, Galveston was notified that the mortgage note was in
default and Galveston was in arrears on required principal and interest in the
amount of approximately $427,000 and $2,359,000, respectively. Beal Bank then
commenced foreclosure proceedings. In order to stay such proceedings, Galveston
filed a voluntary petition under Chapter 11 of the United States Bankruptcy
Code. Currently, there is a contract of sale of the property as part of a
settlement plan awaiting confirmation by the Court. As of June 25, 1997 the
Partnership had advanced $606,445 of interest-free loans to Galveston of which
approximately $549,000 remains unpaid at June 25, 1997. The Partnership's
investment in Galveston has been reduced to zero by prior years' losses. The
minority interest balance was zero at both June 25, 1997 and March 25, 1997.
Galveston's net loss after minority interest amounted to
10
<PAGE>
CAMBRIDGE ADVANTAGED PROPERTIES II
LIMITED PARTNERSHIP AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 25, 1997
(Unaudited)
Note 4 - Commitments and Contingencies (continued)
approximately $9,000 and $67,000 for the three months ended June 25, 1997 and
1996, respectively.
11
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
The Partnership's primary sources of funds are the cash distributions from
operations of the Local Partnerships in which the Partnership has invested.
These sources are available to meet obligations of the Partnership. However, the
cash distributions received from the Local Partnerships to date have not been
sufficient to meet all such obligations of the Partnership. During the three
months ended June 25, 1997 and 1996 such distributions amounted to approximately
$150,000 and $0, respectively. Accordingly, the Related General Partner advanced
funds to meet the Partnership's third party obligations with remaining unpaid
balances totaling approximately $1,996,000 and $2,067,000 at June 25, 1997 and
March 25, 1997, respectively. In addition, certain fees and expense
reimbursements owed to the General Partners amounting to approximately
$1,903,000 and $1,680,000 were accrued and unpaid as of June 25, 1997 and March
25, 1997, respectively. Without the General Partners' advances and continued
accrual without payment of certain fees and expense reimbursements, the
Partnership will not be in a position to meet its obligations. The General
Partners have continued advancing and allowing the accrual without payment of
these amounts, but are under no obligation to do so.
During the three months ended June 25, 1997, cash and cash equivalents of the
Partnership and its eleven consolidated Local Partnerships increased
approximately $78,000. This increase was primarily attributable to cash flow
provided by operating activities ($321,000) which exceeded a decrease in
capitalization of consolidated subsidiaries attributable to minority interest
($59,000) and principal payments of mortgage notes payable ($193,000). Cash flow
provided by operating activities included timing differences relating to payment
of certain expenses of the Local Partnerships including cash flow interest which
is included in accounts payable and accrued expenses at March 31, 1997. Included
in the adjustments to reconcile the net loss to cash flow provided by operating
activities is forgiveness of indebtedness income ($55,000) and depreciation and
amortization ($872,000).
For a discussion of contingencies affecting certain Local Partnerships, see Note
4 to the Financial Statements. Since the maximum loss the Partnership would be
liable for is its net investment in the respective Local Partnerships, the
resolution of the existing contingencies is not anticipated to impact future
results of operations, liquidity or financial condition in a material way.
12
<PAGE>
Management is not aware of any trends or events, commitments or uncertainties,
which have not otherwise been disclosed, that will or are likely to impact
liquidity in a material way. Management believes the only impact would be from
laws that have not yet been adopted. The portfolio is diversified by the
location of the properties around the United States so that if one area of the
country is experiencing downturns in the economy, the remaining properties in
the portfolio may be experiencing upswings. However, the geographic
diversification of the portfolio may not protect against a general downturn in
the national economy.
Results of Operations
Excluding McAdam, which sold its property on May 31, 1996, administrative and
management-related parties and forgiveness of indebtedness income, the results
of operations of the Partnership, as well as the Local Partnerships remained
fairly consistent during the three months ended June 25, 1997 and 1996. The
majority of Local Partnership income continues to be in the form of rental
income with the corresponding expenses being divided among operations,
depreciation and mortgage interest.
Rental income decreased approximately 3% for the three months ended June 25,
1997 as compared to the corresponding period in 1996. Excluding McAdam, rental
income increased approximately 2% for the three months ended June 25, 1997, as
compared to the corresponding period in 1996 primarily due to rental rate
increases.
Other income decreased approximately $143,000 for the three months ended June
25, 1997 as compared to the corresponding period in 1996. Excluding McAdam, such
income decreased approximately $99,000 primarily due to a decrease in income
from the funding of the Breakeven Guarantee by the Local General Partner of
Suncreek which was eliminated in connection with the refinancing of the mortgage
debt of Suncreek on April 15, 1996.
Total expenses excluding administrative and management-related parties,
operating and repairs and maintenance expenses remained fairly consistent with a
decrease of approximately 3% for the three months ended June 25, 1997 as
compared to 1996.
Administrative and management-related parties increased approximately $191,000
for the three months ended June 25, 1997 as compared to the corresponding period
in 1996 primarily due to an increase in partnership management fees payable to
the General Partners.
13
<PAGE>
Operating expenses decreased approximately $5,000 for the three months ended
June 25, 1997 as compared to the corresponding period in 1996. Excluding McAdam,
such expenses increased approximately $35,000 primarily due to a credit in 1996
resulting from billing errors relating to utilities which partially offset the
expense at Triangle/Oaks as well as small increases in utilities at Apple Creek
and Sheridan Square.
Repairs and maintenance expenses decreased approximately $371,000 for the three
months ended June 25, 1997 as compared to the corresponding period in 1996.
Excluding McAdam, such expenses decreased approximately $67,000 primarily due to
the installation of an irrigation system and the correction of an erosion
problem caused by poor drainage at Woodridge, Ltd. in 1996.
Administrative and management expenses, taxes and insurance, and depreciation
and amortization expense decreased approximately $137,000, $58,000, and
$143,000, respectively, for the three months ended June 25, 1997 as compared to
the corresponding period in 1996 primarily due to the sale of the property owned
by McAdam. Excluding McAdam, such expenses remained fairly consistent with an
increase of approximately 3%, a decrease of approximately 3%, and an increase of
approximately 1%, respectively. Interest expense decreased approximately
$431,000 for the three months ended June 25, 1997 as compared to the
corresponding period in 1996. Excluding McAdam as well as Suncreek, which
refinanced its mortgage debt on April 15, 1996, such expense remained fairly
consistent with a decrease of approximately 5%.
Forgiveness of indebtedness income in the amount of $55,000, relating to
forgiveness of amounts due to the Related General Partner on May 2, 1997, was
recorded for the three months ended June 25, 1997.
14
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Galveston-Stewart's Landing, Ltd. ("Galveston") has sustained continued
operating deficits and has a net partners' deficiency of approximately
$5,774,000 at June 25, 1997. Galveston's mortgage note was originally due to
HUD. During 1995, HUD assigned and transferred the mortgage note to Beal Bank.
On December 14, 1995, Galveston was notified that the mortgage note was in
default and Galveston was in arrears on required principal and interest in the
amount of approximately $427,000 and $2,359,000, respectively. Beal Bank then
commenced foreclosure proceedings. In order to stay such proceedings, Galveston
filed a voluntary petition under Chapter 11 of the United States Bankruptcy
Code. Currently, there is a contract of sale of the property as part of a
settlement plan awaiting confirmation by the Court.
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
(a) Exhibits:
27 Financial Data Schedule (filed herewith).
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter.
15
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
CAMBRIDGE ADVANTAGED
PROPERTIES II LIMITED PARTNERSHIP
(Registrant)
By: RELATED ADVANTAGED RESIDENTIAL
ASSOCIATES, INC., a General Partner
Date: August 8, 1997
By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes,
Vice President
(principal financial officer)
Date: August 8, 1997
By: /s/ Richard A. Palermo
----------------------
Richard A. Palermo,
Treasurer
(principal accounting officer)
By: ADVANTAGED HOUSING ASSOCIATES,
INC., a General Partner
Date: August 8, 1997
By: /s/ Paul L. Abbott
------------------
Paul L. Abbott,
President
17
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial information
extracted from the financial statements for
Cambridge Advantaged Properties II L.P. and is
qualified in its entirety by reference to such
financial statements
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-25-1998
<PERIOD-START> MAR-26-1997
<PERIOD-END> JUN-25-1997
<CASH> 1,303,486
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,049,133
<PP&E> 120,889,451
<DEPRECIATION> 43,945,448
<TOTAL-ASSETS> 83,566,959
<CURRENT-LIABILITIES> 14,361,889
<BONDS> 98,147,831
0
0
<COMMON> 0
<OTHER-SE> (28,942,761)
<TOTAL-LIABILITY-AND-EQUITY> 83,566,959
<SALES> 0
<TOTAL-REVENUES> 4,458,837
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,420,749
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,867,562
<INCOME-PRETAX> (829,474)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 55,000
<CHANGES> 0
<NET-INCOME> (774,474)
<EPS-PRIMARY> (106)
<EPS-DILUTED> 0
</TABLE>
