UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 1995 Commission File Number 2-99673
LINCAM PROPERTIES LTD. SERIES 85
(Exact name of registrant as specified in charter)
ILLINOIS 36-3377785
(State of Organization) (I.R.S. Employer Identification No.)
125 SOUTH WACKER DRIVE, SUITE 3100, CHICAGO, ILLINOIS 60606
(Address of principal executive office)
Registrant's telephone number, including area code: (312) 443-1477
Indicate by check (X) 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 ______
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
LINCAM PROPERTIES LTD. SERIES 85
(a limited partnership) and Consolidated Venture
CONSOLIDATED BALANCE SHEETS
September 30, 1995 and December 31, 1994
(Unaudited)
ASSETS
1995 1994
_____ _____
Current assets:
Cash and cash equivalents. . . . . . $ 559,800 823,430
Prepaid expenses and other . . . . . 33,812 37,901
Receivable from tenant . . . . . . . 7,845 61,679
____________ ___________
Total current assets. . . . . . . 601,457 923,010
____________ ___________
Note receivable. . . . . . . . . . . . 5,485,000 5,485,000
____________ ___________
Investment properties, at close (notes 2 and 3):
Land . . . . . . . . . . . . . . . . 2,399,174 4,933,945
Building and improvements. . . . . . 12,004,267 22,307,104
____________ ___________
14,403,441 27,241,049
Less accumulated depreciation. . . . (2,835,403) (5,588,495)
____________ ___________
Total investment properties, net of
accumulated depreciation . . . . 11,568,038 21,652,554
Deferred expenses, net . . . . . . . . - 86,655
Other assets . . . . . . . . . . . . . 175,201 304,856
____________ ___________
Total assets. . . . . . . . . . . $ 17,829,696 28,452,075
____________ ___________
LIABILITIES AND PARTNERS' CAPITAL (DEFICITS)
Current liabilities:
Accounts payable . . . . . . . . . . 37,598 77,063
Unearned income. . . . . . . . . . . - 1,952
Accrued interest payable . . . . . . - 14,383
Funds held for others (note 2) . . . 100,879 126,586
Accrued real estate taxes. . . . . . 180,702 427,116
Tenant security deposits . . . . . . 32,803 113,228
____________ ___________
Total current liabilities . . . . 351,982 760,328
Note payable (note 4). . . . . . . . . - 5,000,000
____________ ___________
Total liabilities . . . . . . . . 351,982 5,760,328
____________ ___________
Venture partners' investment
in venture . . . . . . . . . . . . . - 4,106,229
____________ ___________
Partners' capital (deficits) (note 1):
General Partner:
Capital contributions . . . . . . 2,000 2,000
Allocated portion of cumulative
net income . . . . . . . . . . . 100,310 63,124
Cumulative cash distributions . . (150,349) (102,086)
____________ ___________
(48,039) (36,962)
____________ ___________
Limited Partners:
Interests of $1,000. Authorized 40,001
Interests; issued and outstanding,
25,016 Interests. . . . . . . . . 22,479,645 22,479,645
Allocated portion of cumulative
net income. . . . . . . . . . . . 9,986,783 6,305,454
Cumulative cash distributions. . . . (14,940,675) (10,162,619)
____________ ___________
17,525,753 18,622,480
____________ ___________
Total partners' capital . . . . . 17,477,714 18,585,518
____________ ___________
Total liabilities and
partners' capital . . . . . . . $ 17,829,696 28,452,075
____________ ___________
See accompanying notes to consolidated financial statements.
- 2 -
LINCAM PROPERTIES. LTD. SERIES 85
(a limited partnership) and Consolidated Venture
CONSOLIDATED STATEMENT OF OPERATIONS
Three and nine months ended September 30, 1995 and 1994
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
__________ _________ _________ _________
Income:
Rental income. . . . . $395,308 966,240 1,842,831 2,780,461
Charges to tenants . . 35,882 44,606 111,998 89,242
Interest income. . . . 110,689 109,431 361,833 320,780
Other income . . . . . 5,157 20,871 36,650 59,928
________ _________ _________ _________
Total income. . . . 547,036 1,148,148 2,353,312 3,250,411
________ _________ _________ _________
Expenses:
Property operating
expenses. . . . . . 105,873 319,337 593,810 987,346
Depreciation . . . . . 83,919 156,319 332,094 456,735
Interest . . . . . . . 56 96,964 128,490 264,341
Management fees paid to
the General Partner
(note 5). . . . . . 16,221 47,403 80,064 126,893
Professional services. 21,223 13,773 60,468 54,318
Amortization of deferred
expenses. . . . . . - 12,998 14,731 38,995
General and
administrative. . . 19,195 16,909 54,804 52,061
________ _________ _________ _________
Total expenses. . . 246,487 663,703 1,264,461 1,980,689
________ _________ _________ _________
Operating income. . 300,549 477,445 1,088,851 1,269,722
Gain on sale of
investment property. . (810) - 4,768,875 -
Venture partners' share of
ventures' operations
(note 3) . . . . . . . 3,953 (104,722) (2,067,287) (279,357)
_______ _________ __________ _________
Net income before
extraordinary item. 303,692 372,723 3,790,439 990,365
Extraordinary item:
Loss on early
extinguishment
of debt . . . . . - - 71,924 -
_______ _________ _________ _________
Net income . . . . . . $303,692 372,723 3,718,515 990,365
_______ _________ _________ _________
Net income per limited
partnership unit:
Before extraordinary
item. . . . . . . . $12.02 14.75 150.01 39.19
Extraordinary item . . $ - - 2.85 -
______ _____ ______ _____
Net income . . . . . . $12.02 14.75 147.16 39.19
______ _____ ______ _____
Cash distribution per
limited partnership
interest. . . . . . $15.00 18.00 191.00 52.00
______ _____ ______ _____
See accompanying notes to consolidated financial statements.
- 3 -
LINCAM PROPERTIES LTD. SERIES 85
(a limited partnership) and Consolidated Venture
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended September 30, 1995 and 1994
(Unaudited)
1995 1994
____ ____
Cash flows from operating activities:
Net income. . . . . . . . . . . . . . $ 3,718,515 990,365
Adjustments to reconcile net income
to net cash provided by
operating activities:
Gain on sale of
investment property. . . . . . . . (4,768,875) -
Loss on early
extinguishment of debt . . . . . . 71,924 -
Depreciation. . . . . . . . . . . . 332,094 456,735
Amortization. . . . . . . . . . . . 14,731 38,995
Venture Partners' share of income . 2,067,287 279,357
Changes in assets and liabilities:
Decrease in prepaid expenses and
other assets. . . . . . . . . . . 4,089 35,081
Decrease in receivable from tenant 53,834 -
Decrease in other assets . . . . . 129,655 10,096
Decrease in accounts payable . . . (39,465) (36,784)
Decrease in unearned income. . . . (1,952) (1,406)
Decrease in accrued
interest payable. . . . . . . . . (14,383) 1,149
Decrease in funds held for others. (25,707) (8,535)
Decrease in accrued
real estate taxes . . . . . . . . (246,414) (61,507)
Increase (decrease) in
tenant security deposits. . . . . (80,425) 6,092
____________ ___________
Total adjustments. . . . . . . . . (2,503,607) 719,273
____________ ___________
Net cash provided by
operating activities . . . . . . . 1,214,908 1,709,638
____________ ___________
Cash flows from (for) investing activities:
Additions to buildings
and improvements . . . . . . . . . . (9,462) (143,375)
Net cash proceeds from sale
of investment properties . . . . . . 14,530,759 -
____________ ___________
Net cash provided by
(used in) investment activities. . 14,521,297 (143,375)
____________ ___________
Cash flow for financing activities:
Cash distributions to Limited Partners (4,778,056) (1,300,833)
Cash distributions to General Partners (48,263) (13,139)
Cash distributions to Venture Partner (6,173,516) (360,000)
Decrease in note payable. . . . . . . (5,000,000) -
____________ ___________
Net cash used in financing activities (15,999,835) (1,673,972)
____________ ___________
Net decrease in cash and
cash equivalents. . . . . . . . . . . (263,630) (107,709)
Cash and cash equivalents at beginning
of period . . . . . . . . . . . . . . 823,430 825,370
____________ ___________
Cash and cash equivalents at
end of period . . . . . . . . . . . . $ 559,800 717,661
____________ ___________
See accompanying notes to consolidated financial statements.
- 4 -
LINCAM PROPERTIES LTD. SERIES 85
(a limited partnership) and Consolidated Venture
Notes to Consolidated Financial Statements
September 30, 1995 and 1994
(Unaudited)
Readers of this quarterly report should refer to the Partnership's audited
financial statements for the fiscal year ended December 31, 1994, which are
included in the Partnership's 1994 Annual Report, as certain footnote
disclosures which would substantially duplicate those contained in such
audited financial statements have been omitted from this report.
(1) ORGANIZATION AND BASIS OF ACCOUNTING
The accompanying consolidated financial statements include the accounts of the
Partnership and its consolidated venture, LincAm Barton Venture (Note 3).
The effect of all transactions between the Partnership and the venture has
been eliminated.
For purposes of reporting cash flows, cash and cash equivalents include an
investment in a money market account and other investments (having daily
availability) at cost which approximates market.
The Partnership records are maintained on the accrual basis of accounting as
adjusted for Federal income tax reporting purposes. The accompanying
consolidated financial statements have been prepared from such records after
making appropriate adjustments to reflect the Partnership's accounts in
accordance with generally accepted accounting principles (GAAP). Such
adjustments are not recorded on the records of the Partnership. The net
effect of these items is summarized below:
<TABLE>
<CAPTION>
Nine Months Ended Nine Months Ended
Sept. 30, 1995 Sept. 30, 1994
________________________________________
GAAP TAX GAAP TAX
BASIS BASIS BASIS BASIS
___________ __________ __________ __________
<S> <C> <C> <C> <C>
Total assets . . . . . . . .$17,829,696 17,399,105 28,417,836 17,591,212
Partners' capital (deficits):
General Partners. . . . . .$ (48,039) (148,459) (36,021) (152,786)
Limited Partners. . . . . .$17,525,753 16,088,588 18,715,573 15,660,239
Net income:
General Partners. . . . . .$ 37,185 53,802 9,904 8,753
Limited Partners. . . . . .$ 3,681,330 5,326,407 970,461 866,546
Net income per limited
partnership interest. . . .$ 147.16 212.92 39.19 34.64
</TABLE>
The net income and cash distributions per limited partnership interest,
as presented for the nine month periods ended September 30, 1995 and 1994 are
based upon the limited partnership interests outstanding at the end of the
periods (25,016).
Deferred commitment fees are amortized using the straight-line method
over the term stipulated in the related agreements.
No provision for Federal income taxes has been made as any liability
for such taxes is that of the partners rather than the Partnership.
Certain amounts in the consolidated 1994 financial statements have been
reclassified to conform to the 1995 presentation.
(2) INVESTMENT PROPERTIES
(a) General
_______
The Partnership has acquired, either directly or through a joint
venture (Note 3), three apartment complexes, a distribution center, and a
warehouse/research facility. One apartment complex was sold in 1993. Another
apartment complex, owned through the joint venture, was sold in April, 1995.
All three of the properties owned at September 30, 1995 were completed and in
operation.
The cost of the investment properties, as acquired, represents the
total cost to the Partnership or its venture plus miscellaneous acquisition
costs.
Depreciation on the investment properties acquired has been provided
over the estimated useful lives of five to forty years using the straight-line
method.
Maintenance and repair expenses are charged to operations as
incurred. Expenditures which materially add to the value or utility of the
property or appreciably prolong its useful life are capitalized and
depreciated over their estimated useful lives.
(b) Oak View Apartments
___________________
On September 30, 1986, the Partnership acquired the Oak View
Apartments, a recently constructed 124 unit apartment complex located in the
Augusta, Georgia metropolitan area, and title to the approximately twenty
acre parcel of land on which the complex is situated.
The Partnership's purchase price was $3,604,460, excluding closing
costs, fees, reserves and prorations, and was determined by arm's-length
negotiations.
An affiliate of the General Partners manages the apartment complex
for a fee equal to 5% of the gross revenue of the property.
(c) 5521 Meadowbrook Court Distribution Center
__________________________________________
On January 12, 1987, the Partnership acquired for $2,492,500 an
approximately 50,000 square foot distribution center and the approximately
110,000 square foot parcel of land on which the building is situated. The
property is located at 5521 Meadowbrook Court in Rolling Meadows, Illinois,
and has been leased to Komori America, Inc. since February 11, 1991. Komori
America, Inc. has entered into a thirty-two month lease agreement which
commenced August 16, 1993. Under the terms of this lease the tenant will
occupy approximately 41.67% of the distribution center and pay a base rent of
$4.85 per square foot in year one. The base rent increased to $4.90 on
August 1, 1994. Komori America, Inc. has amended their lease effective
February 1, 1994 to occupy an additional 4,167 square feet (8.33%) for $2.75
per square foot. Komori America, Inc. currently occupies 50% of the
distribution center and is responsible for 50% of all operating expenses
including real estate taxes, during 1994.
On January 11, 1994, the Partnership leased the remaining 25,000
square feet of the distribution center to Samsung America, Inc. The
thirty-eight month lease commenced March 6, 1994 and provides for an annual
base rent of $3.75 per square foot in year one. The terms of the lease
provide for three percent annual increases in the base rent. The terms of
the lease also provide that the tenant be responsible for their proportionate
share of all operating expenses, including real estate taxes, during the term
of the lease.
An affiliate of the General Partners manages and provides leasing
services for the distribution center for a fee equal to 6% of the gross
revenue for the property.
(d) Walker's Mark Apartments
________________________
On July 29, 1987, the Partnership acquired for $5,950,000 the
Walker's Mark Apartments, a 164 unit apartment complex located in Dallas,
Texas, and title to the approximately seven acre parcel of land on which the
complex is situated.
On August 19, 1993, the Partnership sold this apartment complex for
$6,585,000. The Partnership received $911,617 in cash (after closing costs
and commissions) and a note receivable for $5,485,000 which is secured by a
first mortgage on the property. The Partnership is receiving monthly
payments of interest only, at an annual rate of 7.5% with the note balance
due October 1, 1997.
(e) 1880 Country Farm Drive Facility
________________________________
On July 1, 1988, the Partnership acquired a recently completed,
approximately 162,000 square foot office and warehouse/research facility and
title to the approximately 354,000 square foot parcel of land on which the
building is situated. The property is located at 1880 Country Farm Drive in
Naperville, Illinois, and is leased to Babson Bros. for a ten-year lease term
commencing September, 1987. Babson Bros. Co. has two 5-year options to renew
its lease at market rates.
The Partnership's purchase price was $7,840,000, excluding closing
costs, fees, reserves and prorations, and was determined by arm's-length
negotiations.
An affiliate of the General Partners manages the property for a fee
equal to 1% of the gross revenue of the property.
Losses in carrying values of investment assets are provided by management
when the losses become apparent and the investment asset is considered
impaired. Management evaluates its investment properties at least quarterly
to assess whether any impairment indications are present, comparing current
net operating income as a percentage of cost to income capitalization rates
for comparable properties. If any investment asset is considered impaired,
a loss is provided to reduce the carrying value of the property to its
estimated fair value. At September 30, 1995 none of the investment assets
were so impaired.
(3) VENTURE AGREEMENT - LINCAM BARTON VENTURE
The Partnership owned a 60% interest in Barton Creek Landing Apartments,
a 250 unit apartment complex located in Austin, Texas which was completed in
1986, and title to the approximately nineteen acre parcel of land on which
the complex is situated. The Partnership and its venture partner, an affiliate
of the General Partners, made cash contributions aggregating $7,746,000 and
$5,164,000, respectively, to the joint venture partnership (the "Joint
Venture"). The Joint Venture's purchase price was $12,500,000 plus closing
costs, fees, reserves and prorations, and was determined by arm's-length
negotiations.
Under the terms of the Joint Venture Agreement, all costs incurred by the
Joint Venture and all profits and losses and cash distributions will be shared
by the Partnership and its venture partner in proportion to their ownership
percentages (60% and 40%, respectively).
On April 12, 1995, the Joint Venture sold this apartment complex for
$14,871,600 in an all cash transaction. The Partnership received approximately
$9,060,000 in cash distributions from the joint venture which was used to
repay debt (see Note 4 of Notes to Consolidated Financial Statements) and
make a special distribution of $3,537,616 or $140 per limited partnership
interest.
(4) NOTE PAYABLE
The Partnership paid the $5,000,000 note which was owed to a bank in
full in April 1995 upon closing of the sale of the Barton Creek Landing
Apartments.
(5) TRANSACTIONS WITH AFFILIATES
Fees, commissions and other expenses required to be paid by the
Partnership to the Corporate General Partner and its affiliates as of and for
the nine months ended September 30, 1995 and 1994 are summarized as follows:
<TABLE>
<CAPTION>
Nine Months Ended Nine Months Ended Unpaid At
Sept. 30, 1995 Sept. 30, 1994 Sept. 30, 1995
__________________ _________________ _______________
<S> <C> <C> <C>
Property management fees $80,064 126,893 -
Reimbursement (at cost) for:
Out-of-Pocket expenses $53,584 52,794 -
_______ _______ ________
_______ _______ ________
</TABLE>
(6) ADJUSTMENTS
In the opinion of the Corporate General Partner, all adjustments
necessary for a fair presentation have been made to the accompanying figures
as of September 30, 1995 and December 31, 1994 and for the nine-month periods
ended September 30, 1995 and 1994.
Item 2.Management Discussion and Analysis of Results of Financial Condition
and Results of Operations
LIQUIDITY AND CAPITAL RESOURCES
On October 23, 1985, the Partnership commenced an offering of $25,000,000
(subject to increase by up to $15,000,000) of Limited Partnership Interests
pursuant to a Registration Statement on Form S-11 under the Securities Act of
1933. The offering of Limited Partnership Interests terminated April 15, 1986.
A total of 25,015 Interests were assigned to the public between October 23,
1985 and May 16, 1986.
After deducting selling expenses and other offering costs, the Partnership had
approximately $22,500,000 with which to make investments in income-producing
commercial and residential real property, to pay legal fees and other costs
(including acquisition fees) related to such investments and to satisfy
working capital requirements. A portion of the proceeds was utilized to
acquire the properties owned by the Partnership at September 30, 1995.
On April 12, 1995, the Joint Venture sold Barton Creek Landing Apartments for
$14,871,600 in an all cash transaction. As described in Notes 3 and 4 of
Notes to Consolidated Financial Statements, the Partnership received
approximately $9,060,000 in cash of which $5,000,000 was used to retire the
Partnership's bank debt. Of the remaining proceeds, $140 per limited
partnership interest was distributed to the partners via a special
distribution. The remaining cash of approximately $520,000 is being held or
has been used for working capital needs.
At September 30, 1995, the Partnership and its consolidated joint venture had
cash of $169,519 and short-term investments in asset management accounts of
$390,281 which will be utilized for distributions to partners and for working
capital requirements.
At September 30, 1995 the Partnership has total current assets of $601,457 and
current liabilities of $351,982 and a current ratio of 1.71. The Partnership
distributed $52 per Limited Partnership Interest in 1993. This distribution
increased 23% to $64 per Limited Partnership Interest in 1994. Including a
special distribution of the net proceeds from the sale of Barton Creek Landing
Apartments equal to $140 per limited partnership interest, cash distributions
are anticipated to be $206 per Limited Partnership Interest in 1995.
In August 1993, the Partnership replaced its existing bank debt. This note
was repaid in full in April 1995 from the proceeds of the sale of Barton Creek
Landing Apartments.
On January 30, 1993, Komori America, Inc. entered into a new lease agreement
to occupy 20,833 square feet of the 50,000 square foot distribution center.
The lease became effective on August 16, 1993, upon expiration of their
previous lease for 100% of the space of the distribution center. In February
1994 Komori America, Inc. amended their lease to occupy an additional 4,167
square feet of the distribution center bringing their total occupancy to
25,000 square feet. Samsung America, Inc. has entered into a thirty-eight
month lease for the remaining 25,000 square feet of the distribution center
effective March 6, 1994. See Note 2(c) of Notes to Consolidated Financial
Statements.
As described in Note 2(d) of Notes to Consolidated Financial Statements the
Partnership sold Walker's Mark Apartments in Dallas, Texas for $6,585,000 on
August 19, 1993. The Partnership received $911,617 in cash (net of closing
costs) at closing and a note receivable for $5,485,000. The note provides for
monthly payments of interest only in the amount of $34,281 for 50 months, at
which time the note balance is due. The Partnership used the funds from the
sale, together with working capital reserves, to pay its note payable down to
$5,000,000.
The Corporate General Partner will continue to explore selling each of the
properties at a time when, from the standpoint of maximizing value, it makes
the most sense.
RESULTS OF OPERATIONS
At September 30, 1995, the Partnership owned three investment properties,
consisting of one apartment complex, a distribution center and a
warehouse/research facility. Another apartment complex, owned through joint
venture, was sold in April, 1995 for $14,871,600 in an all cash transaction.
The Partnership received approximately $9,060,000 in cash distributions from
the joint venture which was used to repay the note payable and make a special
distribution ($140 per limited partnership interest) to the partners.
The decrease in rental income for the nine months ended September 30, 1995
compared to 1994 of approximately $937,600 (33.7%) is primarily due to less
rental income collected at Barton Creek Landing Apartments ($970,700) due to
its being sold on April 12, 1995. This decrease was partially offset by an
increase in rental income at the Rolling Meadows distribution center ($34,400).
The increase in charges to tenants for the nine months ended September 30,
1995 compared to 1994 of approximately $22,800 (25.5%) is attributable to 1)
the distribution center being fully occupied in the first nine months of
1995 ($10,150) as Samsung America, Inc.'s lease for 50% of the distribution
center commenced March 6, 1994; and 2) increased real estate taxes and
maintenance costs being paid directly by the Partnership and reimbursed by the
tenants ($12,650). Interest income increased approximately $41,100 (12.8%)
for the nine months ended September 30, 1995 compared to 1994. This increase
is primarily attributable to increased amounts held in interest bearing
short-term asset management accounts from April 12, 1995 until May 31, 1995.
The decrease in other income of approximately $23,300 (38.8%) is primarily due
to the sale of Barton Creek Landing Apartments. Property operating expenses
decreased approximately $393,500 (39.9%) for the nine months ended September
30, 1995 compared to 1994. This decrease is primarily attributable to 1) the
Barton Creek Landing Apartments being sold ($390,600); and 2) leasing
commissions paid in 1994 for Samsung America Inc.'s lease ($12,900). This
decrease was partially offset by an increase in property operating expenses
at Oak View Apartments of approximately $7,200. The decrease in depreciation
expense of approximately $124,600 (27.3%) for the nine months ended September
30, 1995 compared to 1994 is primarily due to Barton Creek Landing Apartments
being sold ($132,700). This decrease was partially offset by increases in
property placed in service during the second quarter of 1994 at the
distribution center ($9,300). The repayment of the $5,000,000 note payable
on April 12, 1995 resulted in a decrease of interest expense of approximately
$135,900 (51.4%) for the nine months ended September 30, 1995 compared to 1994.
Management fees paid to an affiliate of the General Partners decreased
approximately $46,800 (36.9%) for the nine months ended September 30, 1995
compared to 1994. The sale of the Barton Creek Landing Apartments accounted
approximately for a $50,100 decrease in management fees. This decrease was
partially offset by an increase in management fees due to the increases in
rental income and charges to tenants at the distribution center.
Professional services increased approximately $6,200 (11.3%) for the nine
months ended September 30, 1995 compared to 1994. This increase is primarily
attributable to services associated with Barton Creek Landing Apartments.
General and administrative expenses have remained essentially flat for the
nine months ended September 30, 1995 compared to 1994. Amortization of
deferred expenses decreased approximately $24,300 for the nine months ended
September 30, 1995 compared to 1994 due to the early repayment of the note
payable. This write-off of deferred expenses is captioned as a loss
on early extinguishment of debt ($71,924) on the consolidated statement of
operations.
For the nine months ended September 30, 1995, net operating income was
$1,088,851 or $43.09 per limited partnership interest. The partnership also
recognized a gain on sale of investment property, net of minority interest of
$2,861,325 or $113.24 per limited partnership interest. After an
extraordinary loss of $71,924 on early extinguishment of debt, the net
income for the nine months ended September 30, 1995 was $3,718,515 or $147.16
per limited partnership interest.
<TABLE>
OCCUPANCY
The following is a listing of approximate occupancy levels by quarter for the partnership's investment properties:
<CAPTION>
1994 1995
--------------------------- ----------------------------------------
at at at at at at at
3/31 6/30 9/30 12/31 3/31 6/30 9/30
----------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Barton Creek Landing
Apartments
Austin, Texas. . . 90% 98% 99% 94% 96% N/A N/A
Oak View Apartments
Augusta, Georgia . 98% 98% 98% 98% 99% 88% 87%
5521 Meadowbrook Court
Distribution Center
Rolling Meadows,
Illinois 100% 100% 100% 100% 100% 100% 100%
1880 Country Farm Drive
Warehouse/
Research Facility
Naperville, IL . . 100% 100% 100% 100% 100% 100% 100%
<FN>
An "N/A" indicates that the property was not owned by the Partnership at the end of the quarter.
</TABLE>
Item 6.Exhibits and Reports on Form 8-K
(a) Exhibits: 27. Financial Data Schedule
(b) Reports on Form 8-K: None.
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.
LINCAM PROPERTIES LTD. SERIES 85
By: LINCAM PROPERTIES, INC.
Corporate General Partner
Date: November 13, 1995 By: /s/ John E. Allen
John E. Allen
President of Corporate
General Partner
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By:LINCAM PROPERTIES, INC.
Corporate General Partner
Date: November 13, 1995 By: /s/ Gregory T. Mutz
Gregory T. Mutz
Chairman and Director
Principal Executive Officer
Date: November 13, 1995 By: /s/ John E. Allen
John E. Allen
President and Director
Date: November 13, 1995 By: /s/ Charles C. Kraft
Charles C. Kraft, Treasurer
Principal Financial Officer and
Principal Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S FORM 10-Q FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
INCLUDED IN SUCH REPORT.
</LEGEND>
<CIK> 0000774489
<NAME> LINCAM PROPERTIES LTD. SERIES 85
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 559,800
<SECURITIES> 0
<RECEIVABLES> 7,845
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 601,457
<PP&E> 14,403,441
<DEPRECIATION> 2,835,403
<TOTAL-ASSETS> 17,829,696
<CURRENT-LIABILITIES> 351,982
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 17,477,714
<TOTAL-LIABILITY-AND-EQUITY> 17,829,696
<SALES> 4,768,875
<TOTAL-REVENUES> 2,353,312
<CGS> 0
<TOTAL-COSTS> 1,264,461
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 128,490
<INCOME-PRETAX> 3,790,439
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,790,439
<DISCONTINUED> 0
<EXTRAORDINARY> (71,924)
<CHANGES> 0
<NET-INCOME> 3,718,515
<EPS-PRIMARY> 147.16
<EPS-DILUTED> 147.16
</TABLE>
