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 March 31, 1997 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)
Registrants'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 ( )
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP)
BALANCE SHEETS
MARCH 31, 1997 AND DECEMBER 31, 1996
(UNAUDITED)
ASSETS
------
<CAPTION>
MARCH 31, DECEMBER 31,
1997 1996
-------------- ------------
<S> <C> <C>
Current assets:
Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . $ 244,245 350,073
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,473 --
Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . 6,595 1,944
------------ ----------
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . 320,313 352,017
------------ ----------
Investment properties, at cost (note 2):
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254,078 816,616
Buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . . 3,595,743 5,702,499
------------ ----------
3,849,821 6,519,115
Less accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . (1,328,319) (1,908,341)
------------ ----------
Total investment properties, net of accumulated depreciation . . . . 2,521,502 4,610,774
Property held for sale, at estimated value (notes 1 and 2) . . . . . . . . . . 2,062,902 --
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,995 13,342
------------ ----------
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,917,712 4,976,133
============ ===========
<PAGE>
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP)
BALANCE SHEETS - CONTINUED
LIABILITIES AND PARTNERS' CAPITAL (DEFICITS)
--------------------------------------------
MARCH 31, DECEMBER 31,
1997 1996
-------------- ------------
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,425 44,411
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,018 1,943
Accrued real estate taxes. . . . . . . . . . . . . . . . . . . . . . . . . . 118,674 146,250
Tenant security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . 31,328 21,154
------------ ----------
Total current liabilities. . . . . . . . . . . . . . . . . . . . . . 178,445 213,758
------------ ----------
Partners' capital (deficits) (note 1):
General Partners:
Capital contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 2,000
Allocated portion of cumulative net income . . . . . . . . . . . . . . . . 105,585 105,817
Cumulative cash distributions. . . . . . . . . . . . . . . . . . . . . . . (283,009) (283,009)
------------ ----------
(175,424) (175,192)
------------ ----------
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 . . . . . . . . . . . . . . . . 10,509,121 10,531,997
Cumulative cash distributions. . . . . . . . . . . . . . . . . . . . . . . (28,074,075) (28,074,075)
------------ ----------
4,914,691 4,937,567
------------ ----------
Total partners' capital . . . . . . . . . . . . . . . . . . . . . . 4,739,267 4,762,375
------------ ----------
Total liabilities and partners' capital. . . . . . . . . . . . . . . . . . . $ 4,917,712 4,976,133
============ ==========
</TABLE>
<PAGE>
<TABLE>
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(UNAUDITED)
<CAPTION>
1997 1996
------------ -----------
<S> <C> <C>
Income:
Rental income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 172,845 391,579
Charges to tenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,952 49,548
Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,461 107,908
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,882 4,792
----------- ----------
Total income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216,140 553,827
----------- ----------
Expenses:
Property operating expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . 111,361 135,197
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,899 82,845
Management fees paid to the
General Partner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,239 16,174
Professional services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,773 14,658
General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,976 18,696
Provision for loss on sale of investment property. . . . . . . . . . . . . . . . 60,000 --
----------- ----------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239,248 267,570
----------- ----------
Operating income (loss). . . . . . . . . . . . . . . . . . . . . . . . . (23,108) 286,257
----------- ----------
Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (23,108) 286,257
=========== ==========
Net income (loss) per limited partnership unit . . . . . . . . . . . . . $ (.91) 11.33
=========== ==========
Cash distributions per limited
partnership interest . . . . . . . . . . . . . . . . . . . . . . . . . $ -- 15.00
=========== ==========
</TABLE>
<PAGE>
<TABLE>
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(UNAUDITED)
<CAPTION>
1997 1996
------------ -----------
<S> <C> <C>
Cash flows from (for) operating activities:
Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (23,108) 286,257
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
Provision for loss on sale of investment property. . . . . . . . . . . . . . . 60,000 --
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,899 82,845
Changes in assets and liabilities:
Increase in prepaid expenses and other current assets. . . . . . . . . . . . (4,651) (6,035)
(Increase) decrease in accounts receivable . . . . . . . . . . . . . . . . . (69,473) 66,695
Decrease in other assets . . . . . . . . . . . . . . . . . . . . . . . . . . 347 17,826
Increase (decrease) in accounts payable. . . . . . . . . . . . . . . . . . . (16,986) 4,677
Increase (decrease) in accrued expenses. . . . . . . . . . . . . . . . . . . (925) 449
Decrease in funds held for others. . . . . . . . . . . . . . . . . . . . . . -- (110,591)
Decrease in accrued real estate taxes. . . . . . . . . . . . . . . . . . . . (27,576) (16,120)
Increase (decrease) in tenant security deposits. . . . . . . . . . . . . . . 10,174 (655)
----------- -----------
Total adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . (27,191) 39,091
----------- -----------
Net cash provided by (used in) operating activities. . . . . . . . . . . (50,299) 325,348
----------- -----------
Cash flows for investing activities:
Additions to buildings and improvements. . . . . . . . . . . . . . . . . . . . . (7,378) (1,630)
Payment of leasing commissions . . . . . . . . . . . . . . . . . . . . . . . . . (48,151) --
----------- -----------
Net cash used in investing activities. . . . . . . . . . . . . . . . . . (55,529) (1,630)
----------- -----------
Cash flows for financing activities:
Cash distributions to Limited Partners . . . . . . . . . . . . . . . . . . . . . -- (375,240)
Cash distributions to General Partners . . . . . . . . . . . . . . . . . . . . . -- (3,790)
----------- -----------
Net cash used in financing activities. . . . . . . . . . . . . . . . . . -- (379,030)
----------- -----------
Net decrease in cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . (105,828) (55,312)
Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . . . 350,073 507,111
----------- -----------
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . . . $ 244,245 451,799
=========== ===========
</TABLE>
<PAGE>
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997 AND 1996
(UNAUDITED)
Readers of this quarterly report should refer to the Partnership's
audited financial statements for the fiscal year ended December 31, 1996,
which are included in the Partnership's 1996 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
LincAm Properties Ltd. Series 85 (the "Partnership") is a limited
partnership formed in August 1985 under the Uniform Limited Partnership Act
of the State of Illinois. The balance sheets at March 31, 1997 and
December 31, 1996 and the statements of operations and cash flows for the
three months ended March 31, 1997 and 1996 have been prepared by Management
of the Partnership and have not been audited by the Partnership's
independent auditors.
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 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:
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 1997 MARCH 31, 1996
----------------------- ------------------------
GAAP BASIS TAX BASIS GAAP BASIS TAX BASIS
---------- --------- ---------- ---------
Total assets . . . . . .$4,917,712 4,961,014 17,494,953 17,069,707
Partners' capital
(deficits):
General Partners . . .$ (175,424) (213,688) (49,954) (150,160)
Limited Partners . . .$4,914,691 4,996,257 17,336,150 15,920,142
Net income (loss)
General Partners . . .$ (232) 70 2,863 2,853
Limited Partners . . .$ (22,876) 6,980 283,394 282,452
Net income (loss)
per limited part-
nership interest. . . .$ (.91) .28 11.33 11.29
========== ========= ========== ==========
The net income and cash distributions per limited partnership interest,
as presented for the three month period ended March 31, 1997 and 1996 are
based upon the limited partnership interests outstanding at the end of the
periods (25,016).
<PAGE>
No provision for Federal income taxes has been made as any liability,
for such taxes, is that of the partners rather than the Partnership.
Management of the Partnership has made a number of estimates and
assumptions relating to the reporting of assets and liabilities and the
disclosure of contingent assets and liabilities to prepare these financial
statements in conformity with generally accepted accounting principles.
Actual results could differ from those estimates.
On January 1, 1996, the Partnership adopted Statement of Financial
Accounting Standards (SFAS) No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of", which
changes the Partnership's current method of accounting for its real estate
property investments when circumstances indicate that carrying amount of
the property may not be recoverable. Properties held for sale will
continue to be reflected at the lower of historical cost or estimated fair
value less anticipated selling costs. In addition, properties held for
sale will no longer be depreciated.
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 undiscounted future cash flows with the carrying amount of the
asset. If any investment asset is considered impaired, a loss is provided
to reduce the carrying value of the property to its estimated value.
During the three months ended March 31, 1997, a loss of $60,000 was
recorded relating to the intended sale of the 5521 Meadowbrook Court
Distribution Center facility, so that this property held for sale is
carried at its estimated fair value at March 31, 1997. Management believes
that no other assets are impaired; therefore, no other such losses have
been required to be recognized or provided for in the accompanying
financial statements.
(2) INVESTMENT PROPERTIES
(A) GENERAL
During the years 1986 through 1988, the Partnership 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 acquired through the
joint venture was sold in 1995. The warehouse/research facility was sold
in September, 1996.
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.
<PAGE>
(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 had been leased to Komori America , Inc. since February 11, 1991.
Komori America, Inc.'s lease expired on May 31, 1996 at which time they
vacated the 50% of the distribution center they had occupied.
On January 11, 1994, the Partnership leased 25,000 square feet of
the distribution center to Samsung America, Inc. The thirty-eight month
lease commenced March 6, 1994 and provided 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. On November 29, 1996, the tenant amended the lease to occupy an
additional 25,000 square feet and to extend the term of the lease until
July 31, 2002. Effective March 1, 1997, the tenant occupies the entire
distribution center and is responsible for all operating expenses including
insurance and real estate taxes during the term of the lease. The base
rent for the original 25,000 square feet increased to $4.10 per square foot
on March 1, 1997. Under the terms of the First Amendment to Lease the base
rent for the additional 25,000 square feet is $4.40 per square foot
commencing March 1, 1997. Commencing June 1, 1997, the tenant will pay a
base rent of $4.40 for the entire 50,000 square feet. The lease provides
for 3% annual increases in base rent effective March 1.
An affiliate of the General Partners manages the distribution center
for a fee equal to 3% of the gross revenue of 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. Through June, 1996 the Partnership
received monthly payments of interest only, at an annual rate of 7.5% with
the note balance due October 1, 1997. Pursuant to the note agreement the
buyer was required to deposit with the seller monthly payments for real
estate taxes.
<PAGE>
On July 2, 1996, the buyer prepaid the note. The Partnership
distributed the proceeds from collection of this note on October 1, 1996.
(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 managed the property for a fee
equal to 1% of the gross revenue of the property.
On September 20, 1996, the Partnership sold this facility and the
land on which the building is situated for $6,575,000 in an all cash
transaction. The Partnership received $6,239,950 after closing costs and
commissions. The Partnership used these proceeds and the proceeds from the
collection of the $5,485,000 note from the sale of the Walker's Mark
Apartments to make a special distribution of $450 per limited partnership
interest on October 1, 1996.
(3) 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 three months ended March 31, 1997 and 1996 are summarized as
follows:
THREE MONTHS THREE MONTHS UNPAID AT
ENDED ENDED MARCH 31,
MARCH 31, 1997 MARCH 31, 1996 1997
-------------- -------------- ---------
Property management fees. . . . $ 9,239 16,174 139
Reimbursement (at cost)
for:
Out-of-Pocket expenses . . . . $20,286 18,167 --
======= ====== ====
(4) ADJUSTMENTS
In the opinion of the Corporate General Partner, all adjustments
necessary for a fair presentation have been made to the accompanying
amounts as of March 31, 1997 and 1996 and for the three month periods ended
March 31, 1997 and 1996.
<PAGE>
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 March 31,
1997.
At March 31, 1997, the Partnership had cash of $18,237 and short-term
investments in asset management accounts of $226,008, which will be
utilized for distributions to partners and for working capital
requirements.
At March 31, 1997, the Partnership has total current assets of $320,313 and
current liabilities of $178,445 and a current ratio of 1.795. Including a
special distribution of the net proceeds from (1) the sale of 1880 Country
Farm Road Facility and (2) the collection of the note receivable equal to
$450 per Limited Partnership Interest, cash distributions increased to $510
per Limited Partnership in 1996. The Partnership will be making future
distributions as its two remaining properties are sold.
On September 20, 1996, the Partnership sold the 1880 Country Farm Drive
facility for $6,575,000 in an all cash transaction. As described in Note
2(E) of Notes to Financial Statements, the Partnership received $6,239,950
(net of closing costs). The Partnership distributed the majority of these
proceeds to the partners via a special distribution on October 1, 1996.
On July 2, 1996 the note receivable was prepaid. The Partnership
distributed the proceeds from the collection of this note on October 1,
1996.
The Corporate General Partner will continue to explore selling its
remaining properties at a time when, from the standpoint of maximizing
value, it makes the most sense.
RESULTS OF OPERATIONS
At March 31, 1997, the Partnership owned two investment properties,
consisting of an apartment complex, and a distribution center.
The decrease in rental income for the three months ended March 31, 1997
compared to 1996 of approximately $218,700 (55.8%) is primarily due to:
1) no rental income generated at 1880 Country Farm Drive Facility
($182,900) due to its being sold in September 1996; 2) less rental income
at Oak View Apartments ($17,350) due to lower occupancy; and 3) less rental
income at Meadowbrook Court Distribution Center ($18,450) due to lower
occupancy.
The decrease in charges to tenants for the three months ended March 31,
1997 compared to 1996 of approximately $16,600 (33.5%) is primarily due to
lower occupancy with the Partnership being responsible for half of the real
estate taxes and maintenance expenses for January and February 1997.
Interest income decreased approximately $103,400 for the three months ended
March 31, 1997 compared to 1996. This decrease is primarily attributable
to early repayment of the note receivable in July 1996.
<PAGE>
Other income increased approximately $1,100 (22.7%) for the three months
ended March 31, 1997 as compared to 1996. This increase is primarily due
to an increase in tenant services and charges at Oak View Apartments.
Property operating expenses decreased approximately $23,800 (17.6%) for the
three months ended March 31, 1997 compared to 1996. This decrease was
primarily due to decreases in property operating expenses at Oak View
Apartments (approximately $10,800) and at Meadowbrook Court Distribution
Center (approximately $14,600).
The decrease in depreciation expense of approximately $60,900 (73.6%) for
the three months ended March 31, 1997 compared to 1996 is primarily
attributable to: 1) no depreciation recorded on the 1880 Country Farm Drive
Facility due to its being sold in 1996 ($39,500) and 2) less depreciation
charged at the Meadowbrook Court Distribution Center ($20,700) due to the
estimated fair value accounting in accordance with SFAS No. 121.
Management fees paid to an affiliate of the General Partner decreased
approximately $6,900 (42.9%) for the three months ended March 31, 1997 as
compared to 1996. This decrease is primarily attributable to 1) the sale
of 1880 Country Farm Drive Facility ($2,000); 2) less rental income at
Oakview Apartments ($800); and 3) less rental income at Meadowbrook Court
Distribution Center ($4,100).
Professional services decreased approximately $1,900 (12.9%) for the three
months ended March 31, 1997 as compared to 1996. This decrease is
primarily due to a decrease in tax and audit fees incurred by the
Partnership.
General and administration expenses increased approximately $5,300 (28.2%)
for the three months ended March 31, 1997 as compared to 1996. This
increase is primarily due to: 1) costs incurred for mandated electronic
filings of reports with the Securities and Exchange Commission (approxi-
mately $3,300) and 2) increases in overhead charges (approximately $2,000).
<PAGE>
<TABLE>
OCCUPANCY
The following is a listing of approximate occupancy levels by quarter for the partnership's investment properties:
<CAPTION>
1996 1997
------------------------------------- ------------------------------
At At At At At At At At
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
---- ---- ---- ----- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Oak View Apartments
Augusta, Georgia . . . . . . . 96% 88% 77% 82% 84%
5521 Meadowbrook Court
Distribution Center
Rolling Meadows, Illinois. . . 100% 50% 50% 50% 100%
1880 Country Farm Drive
Warehouse/Research Facility
Naperville, IL . . . . . . . . 100% 100% N/A N/A N/A
</TABLE>
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS: 27. Financial Data Schedule
(b) REPORTS ON FORM 8-K: None
<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.
LINCAM PROPERTIES LTD. SERIES 85
By: LINCAM PROPERTIES, INC.
Corporate General Partner
Date: May 12, 1997 By: /s/ CHARLES C. KRAFT
Charles C. Kraft, Treasurer
Principal Financial Officer and
Principal Accounting Officer
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: May 12, 1997 By: /s/ GREGORY T. MUTZ
Gregory T. Mutz
Chairman and Director
Principal Executive Officer
Date: May 12, 1997 By: /s/ JOHN E. ALLEN
John E. Allen
President and Director
Date: May 12, 1997 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 THREE MONTHS ENDED MARCH 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
INCLUDED IN SUCH REPORT.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
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