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 September 30, 1997
------------------
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- -----
EXCHANGE ACT OF 1934.
For the transition period from to
------------ ------------
Commission file number 0-15649
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BALCOR REALTY INVESTORS 86-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
-------------------------------------------------------
(Exact name of registrant as specified in its charter)
Illinois 36-3327914
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2355 Waukegan Rd.
Bannockburn, Illinois 60015
- ---------------------------------------- -------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 267-1600
---------------
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>
BALCOR REALTY INVESTORS - 86
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
BALANCE SHEETS
September 30, 1997 and December 31, 1996
(UNAUDITED)
ASSETS
1997 1996
-------------- --------------
Cash and cash equivalents $ 2,004,672 $ 12,857,731
Escrow deposits 335,000 533,283
Accounts and accrued interest receivable 7,043 171,078
Prepaid expenses 14,178
Deferred expenses, net of accumulated
amortization of $39,380 in 1996 35,799
-------------- --------------
2,346,715 13,612,069
-------------- --------------
Investment in real estate:
Land 1,045,776
Buildings and improvements 5,789,366
--------------
6,835,142
Less accumulated depreciation 2,456,156
--------------
Investment in real estate, net of
accumulated depreciation 4,378,986
-------------- --------------
$ 2,346,715 $ 17,991,055
============== ==============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 17,459 $ 133,372
Due to affiliates 56,260 117,361
Accrued liabilities, principally
real estate taxes 35,921
Security deposits 32,222
Mortgage notes payable 4,210,138
-------------- --------------
Total liabilities 73,719 4,529,014
Affiliates' participation in
joint ventures 1,064,860
--------------
Commitments and contingincies
Limited Partners' capital
(59,791 Interests issued
and outstanding) 2,589,957 12,723,428
<PAGE>
BALCOR REALTY INVESTORS - 86
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
BALANCE SHEETS
September 30, 1997 and December 31, 1996
(UNAUDITED)
(Continued)
ASSETS
1997 1996
-------------- --------------
General Partner's deficit (316,961) (326,247)
-------------- --------------
Total partners' capital 2,272,996 12,397,181
-------------- --------------
$ 2,346,715 $ 17,991,055
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR REALTY INVESTORS - 86
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
For the nine months ended September 30, 1997 and 1996
(UNAUDITED)
1997 1996
-------------- --------------
Income:
Rental and service $ 30,002 $ 8,782,979
Interest on short-term investments 132,354 79,005
Other income 11,697
-------------- --------------
Total income 174,053 8,861,984
-------------- --------------
Expenses:
Interest on mortgage notes payable 37,810 3,376,621
Lender participations 1,844,713
Depreciation 4,393 1,319,448
Amortization of deferred expenses 260 45,922
Property operating 141,409 3,121,336
Real estate taxes 1,870 625,757
Property management fees 1,113 457,112
Administrative 165,470 450,051
-------------- --------------
Total expenses 352,325 11,240,960
-------------- --------------
Loss before gain on sales of properties,
affiliates' participation in joint
ventures and extraordinary item (178,272) (2,378,976)
Gain on sales of properties 828,751 16,152,846
Affiliates' participation in (income)
from joint ventures (30,708)
-------------- --------------
Income before extraordinary item 650,479 13,743,162
Extraordinary item:
Debt extinguishment expense (161,761) (4,382)
-------------- --------------
Net income $ 488,718 $ 13,738,780
============== ==============
Income before extraordinary item
allocated to General Partner $ 10,904 $ 137,432
============== ==============
Income before extraordinary item
allocated to Limited Partners $ 639,575 $ 13,605,730
============== ==============
Income before extraordinary item
per Limited Partnership Interest
(59,791 issued and outstanding) $ 10.70 $ 227.55
============== ==============
<PAGE>
BALCOR REALTY INVESTORS - 86
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
For the nine months ended September 30, 1997 and 1996
(UNAUDITED)
(Continued)
1997 1996
-------------- --------------
Extraordinary item allocated
to General Partner $ (1,618) $ (44)
============== ==============
Extraordinary item allocated
to Limited Partners $ (160,143) $ (4,338)
============== ==============
Extraordinary item per Limited
Partnership Interest (59,791
issued and outstanding) (2.68) $ (0.07)
============== ==============
Net income allocated to
General Partner $ 9,286 $ 137,388
============== ==============
Net income allocated to
Limited Partners $ 479,432 $ 13,601,392
============== ==============
Net income per Limited
Partnership Interest (59,791
issued and outstanding) $ 8.02 $ 227.48
============== ==============
Distributions to Limited Partners $ 10,612,903 $ 4,723,490
============== ==============
Distributions per Limited Partnership
Interest $ 177.50 $ 79.00
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR REALTY INVESTORS - 86
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
For the quarters ended September 30, 1997 and 1996
(UNAUDITED)
1997 1996
-------------- --------------
Income:
Rental and service $ 2,363,414
Interest on short-term investments $ 20,839 29,719
Other income 11,697
-------------- --------------
Total income 32,536 2,393,133
-------------- --------------
Expenses:
Interest on mortgage notes payable 917,003
Lender participation 1,377,156
Depreciation 350,141
Amortization of deferred expenses 13,145
Property operating 881,999
Real estate taxes 160,459
Property management fees 118,107
Administrative 30,929 136,307
-------------- --------------
Total expenses 30,929 3,954,317
-------------- --------------
Income (loss) before gain on sale of
property, and affiliates' participation
in joint ventures 1,607 (1,561,184)
Gain on sale of property 5,352,560
Affiliates' participation in (income)
from joint ventures (1,292)
-------------- --------------
Net income $ 1,607 $ 3,790,084
============== ==============
Net income allocated to
General Partner None $ 37,901
============== ==============
Net income allocated to
Limited Partners $ 1,607 $ 3,752,183
============== ==============
Net income per Limited
Partnership Interest (59,791
issued and outstanding) $ 0.03 $ 62.75
============== ==============
Distribution to Limited Partners None 149,478
============== ==============
Distribution per Limited Partnership
Interest None 2.50
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR REALTY INVESTORS - 86
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1997 and 1996
(UNAUDITED)
1997 1996
-------------- --------------
Operating activities:
Net income $ 488,718 $ 13,738,780
Adjustments to reconcile net income to
net cash used in operating activities:
Gain on sales of properties (828,751) (16,152,846)
Debt extinguishment expense 35,539 4,382
Affiliates' participation in income
from joint ventures 30,708
Depreciation of properties 4,393 1,319,448
Amortization of deferred expenses 260 45,922
Net change in:
Escrow deposits 198,283 (39,265)
Accounts and accrued interest
receivable 164,035 (37,246)
Prepaid expenses 14,178 56,477
Accounts payable (115,913) (66,662)
Due to affiliates (61,101) 44,207
Accrued liabilities (35,921) (75,291)
Security deposits (32,222) (96,933)
-------------- --------------
Net cash used in operating activities (168,502) (1,228,319)
-------------- --------------
Investing activities:
Proceeds from sales of properties 5,400,000 44,224,000
Payment of selling costs (196,656) (809,535)
Funding of escrow in connection
with sale of property (335,000)
-------------- --------------
Net cash provided by investing
activities 5,203,344 43,079,465
-------------- --------------
Financing activities:
Distributions to joint venture
partner - affiliate (1,064,860) (216,382)
Distributions to Limited Partners (10,612,903) (4,723,490)
Principal payments on mortgage notes
payable (622,979)
Repayment of mortgage notes payable (4,210,138) (33,493,683)
-------------- --------------
<PAGE>
BALCOR REALTY INVESTORS - 86
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1997 and 1996
(UNAUDITED)
(Continued)
1997 1996
-------------- --------------
Cash used in financing activities (15,887,901) (39,056,534)
-------------- --------------
Net change in cash and cash equivalents (10,853,059) 2,794,612
Cash and cash equivalents at beginning
of period 12,857,731 1,093,098
-------------- --------------
Cash and cash equivalents at end of
period $ 2,004,672 $ 3,887,710
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR REALTY INVESTORS 86-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
1. Accounting Policies:
(a) Several reclassifications have been made to the previously reported 1996
financial statements in order to provide comparability with the 1997
statements. These reclassifications have not changed the 1996 results.
(b) In the opinion of management, all adjustments necessary for a fair
presentation have been made to the accompanying statements for the nine months
and quarter ended September 30, 1997, and all such adjustments are of a normal
and recurring nature.
(c) For financial statement purposes, in previous years partners were allocated
income and loss in accordance with the profit and loss percentages in the
Partnership Agreement. In order for the capital accounts of the General Partner
and Limited Partners to appropriately reflect their remaining economic
interests as provided for in the Partnership Agreement, the income allocations
between the partners have been adjusted for financial statement purposes during
1997.
2. Partnership Termination:
The Partnership Agreement provides for the dissolution of the Partnership upon
the occurrence of certain events, including the disposition of all interests in
real estate. During 1996, the Partnership sold five properties and during 1997,
the Partnership sold its remaining property, the Lake Ridge Apartments. The
Partnership has retained a portion of the cash from the property sales to
satisfy obligations of the Partnership as well as establish a reserve for
contingencies. The timing of the termination of the Partnership and final
distribution of cash will depend upon the nature and extent of liabilities and
contingencies which exist or may arise. Such contingencies may include legal
and other fees and costs stemming from litigation involving the Partnership
including, but not limited to, the lawsuits discussed in Note 8 of Notes to
Financial Statements. In the absence of any such contingency, the reserves will
be paid within twelve months of the last property sale. In the event a
contingency continues to exist or arises, reserves may be held by the
Partnership for a longer period of time.
3. Interest Expense:
During the nine months ended September 30, 1997 and 1996, the Partnership
incurred and paid interest expense on mortgage notes payable of $37,810 and
$3,376,621, respectively.
4. Transactions with Affiliates:
Fees and expenses paid and payable by the Partnership to affiliates during the
nine months and quarter ended September 30, 1997 are:
<PAGE>
Paid
----------------------
Nine Months Quarter Payable
------------ --------- ----------
Reimbursement of expenses to
the General Partner, at cost $ 92,028 $ 9,494 $ 56,260
5. Property Sale:
In January 1997, the Partnership sold the Lake Ridge Apartments in an all cash
sale for $5,400,000. From the proceeds of the sale, the Partnership paid
$4,123,938 and $86,200 to the third party mortgage holder in full satisfaction
of the first and second mortgage loans, and paid $196,656 in selling costs and
$126,222 in prepayment penalties. The basis of the property was $4,374,593,
which is net of accumulated depreciation of $2,460,549. For financial statement
purposes, the Partnership recognized a gain of $828,751 from the sale of this
property.
6. Extraordinary Item:
In connection with the sale of Lake Ridge Apartments in January 1997, the
Partnership wrote-off the remaining unamortized deferred financing fees related
to the property of $35,539 and paid $126,222 in prepayment penalties. These
amounts were recognized as an extraordinary item and classified as a debt
extinguishment expense.
7. Affiliates' Participation in Joint Ventures:
(a) The Lakeville Resort Apartments was owned by a joint venture consisting of
the Partnership and an affiliate. During October 1996, the joint venture sold
the property. Pursuant to the terms of the sale, the joint venture was required
to retain $500,000 of the sale proceeds until February 1997, at which time the
funds were released in full. The affiliate's share of the proceeds was
$201,250. The affiliate also received a distribution of $845,410, principally
consisting of its share of repair escrows released during 1997.
(b) The Cedar Crest Apartments was owned by a joint venture consisting of the
Partnership and an affiliate. During November 1996, the joint venture sold the
property. Pursuant to the terms of the sale, the joint venture was required to
retain $500,000 of the sale proceeds until March 1997, at which time the funds
were released in full. The affiliate's share of the proceeds was $18,200.
8. Contingencies:
The Partnership is currently involved in two lawsuits whereby the Partnership
and certain affiliates have been named as defendants alleging substantially
similar claims involving certain federal securities law violations with regard
to the adequacy and accuracy of disclosures of information concerning, as well
as marketing efforts related to, the offering of the Limited Partnership
Interests of the Partnership. The defendants continue to vigorously contest
these actions. A plaintiff class has not been certified in either action and,
<PAGE>
no determinations of the merits have been made. It is not determinable at this
time whether or not an unfavorable decision in either action would have a
material adverse impact on the financial position, operations and liquidity of
the Partnership. The Partnership believes it has meritorious defenses to
contest the claims.
<PAGE>
BALCOR REALTY INVESTORS 86-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS
Balcor Realty Investors 86-Series I A Real Estate Limited Partnership (the
"Partnership") is a limited partnership formed in 1984 to invest in and operate
income-producing real property. The Partnership raised $59,791,000 through the
sale of Limited Partnership Interests and utilized these proceeds to acquire
eight real property investments and a minority joint venture interest in one
additional real property. Prior to 1997, seven of the real property investments
and the minority joint venture interest in a property were sold. During 1997,
the Partnership sold its remaining property, the Lake Ridge Apartments.
Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1996 for a more complete understanding of
the Partnership's financial position.
Operations
- ----------
Summary of Operations
- ---------------------
The Partnership recognized significant gains on the sales of two properties
during March 1996 and one property in August 1996. These gains were higher than
the gain recognized on the sale of the Partnership's remaining property during
January 1997. As a result, the Partnership recognized lower net income during
the nine months and quarter ended September 30, 1997 as compared to the same
periods in 1996. Further discussion of the Partnership's operations is
summarized below.
1997 Compared to 1996
- ---------------------
Unless otherwise noted, discussions of fluctuations between 1997 and 1996 refer
to the nine months and quarters ended September 30, 1997 and 1996.
The sales of the Pines of Cloverlane, Lakeside, Brighton Townhomes, Lakeville
and Cedar Crest apartment complexes during 1996 and the sale of the Lake Ridge
Apartments during January 1997, resulted in decreases in rental and service
income, interest expense on mortgage notes payable, depreciation, amortization,
property operating expense, real estate taxes and property management fees
during 1997 as compared to 1996. During 1997, the Partnership recognized a gain
of $828,751 in connection with the sale of Lake Ridge Apartments. During 1996,
the Partnership recognized gains totaling $16,152,846 in connection with the
sales of the Pines of Cloverlane, Lakeside and Brighton Townhomes apartment
complexes.
Interest income on short-term investments increased during the nine months
ended September 30, 1997 as compared to the same period in 1996 due to higher
<PAGE>
average cash balances resulting from the investment of property sales proceeds
prior to making distributions to Limited Partners in January and April 1997.
The timing of certain 1996 sales and subsequent distribution of proceeds to
Limited Partners resulted in a decrease in interest income on short-term
investments during the quarter ended September 30, 1997 as compared to the same
period in 1996.
The Partnership recognized other income during 1997 in connection with a refund
of a prior year's insurance premium for $11,697 relating to the Partnership's
properties.
The Partnership paid to the lenders participation fees of $467,557 and
$1,377,156 in connection with the 1996 sales of the Lakeside and Brighton
Townhomes apartment complexes, respectively. The lender participations
represent additional interest paid to the lenders calculated as a percentage of
the sales price in excess of amounts specified in the loan agreement.
Administrative expenses decreased in 1997 as compared to 1996 primarily due to
lower portfolio management and legal fees. Lower consulting, printing and
postage costs incurred in connection with a response to a tender offer during
1996 also contributed to the decrease.
The Lakeville and Cedar Crest apartment complexes, which generated income
before their sales in 1996, were owned through joint ventures with affiliates.
As a result of the sales, affiliates' participation in income from joint
venture ceased.
In connection with the January 1997 sale of Lake Ridge Apartments and the March
1996 sale of the Pines of Cloverlane Apartments, the Partnership wrote-off the
remaining unamortized deferred financing fees of $35,539 and $4,382,
respectively. The Partnership also paid $126,222 in prepayment penalties to the
lender in connection with the sale of Lake Ridge Apartments in 1997. These
amounts were recognized as an extraordinary item and classified as debt
extinguishment expense in 1997 and 1996, respectively.
Liquidity and Capital Resources
- -------------------------------
The cash position of the Partnership as of September 30, 1997 decreased by
approximately $10,853,000 as compared to December 31, 1996 primarily due to the
January and April 1997 distributions of sale proceeds to Limited Partners which
was partially offset by the net proceeds received from the sale of the Lake
Ridge Apartments in January 1997. Net cash used in operating activities of
approximately $168,000 during 1997 consisted primarily of the loss generated
from operations of the Lake Ridge Apartments prior to its sale, the payment of
expenses related to properties sold in 1996 and the payment of administrative
expenses which were partially offset by interest income received on short-term
investments. Cash provided by investing activities of approximately $5,203,000
consisted of the net proceeds received from the sale of the Lake Ridge
Apartments. Cash used in financing activities consisted of special
distributions of approximately $10,613,000 to Limited Partners, the repayment
of the Lake Ridge Apartments' mortgage note payable of approximately $4,210,000
and a distribution to joint venture partner - affiliate of approximately
$1,065,000.
<PAGE>
In January 1997, the Partnership sold the Lake Ridge Apartments in an all cash
sale for $5,400,000. From the proceeds of the sale, the Partnership paid
$4,123,938 and $86,200 to the third party mortgage holders in full satisfaction
of the first and second mortgage loans, paid $196,656 in selling costs and also
paid $126,222 in prepayment penalties. See Note 5 of Notes to Financial
Statements for additional information.
The Lakeville Resort Apartments was owned by a joint venture consisting of the
Partnership and an affiliate. During October 1996, the joint venture sold the
property. Pursuant to the terms of the sale, the joint venture was required to
retain $500,000 of the sale proceeds until February 1997, at which time the
funds were released in full. The Partnership's share of the proceeds was
$298,750.
The Cedar Crest Apartments was owned by a joint venture consisting of the
Partnership and an affiliate. During November 1996, the joint venture sold the
property. Pursuant to the terms of the sale, the joint venture was required to
retain $500,000 of the sale proceeds until March 1997, at which time the funds
were released in full. The Partnership's share of the proceeds was $481,800.
Since all of the Partnership's properties have been sold, no additional
quarterly distributions are expected. To date, Limited Partners have received
distributions of Net Cash Receipts of $12.50 and Net Cash Proceeds of $286.50,
totaling $299.00 per $1,000 Interest, as well as certain tax benefits. Limited
Partners will not recover a substantial portion of their original investment.
The Partnership Agreement provides for the dissolution of the Partnership upon
the occurrence of certain events, including the disposition of all interests in
real estate. During 1996, the Partnership sold five properties and during 1997,
the Partnership sold its remaining property, the Lake Ridge Apartments. The
majority of the proceeds from the sales has been distributed to Limited
Partners. The Partnership has retained a portion of the cash from the sales to
satisfy obligations of the Partnership as well as establish a reserve for
contingencies. The timing of the termination of the Partnership and final
distribution of cash will depend upon the nature and extent of liabilities and
contingencies which exist or may arise. Such contingencies may include legal
and other fees and costs stemming from litigation involving the Partnership
including, but not limited to, the lawsuits discussed in Note 8 of Notes to
Financial Statements. In the absence of any such contingency, the reserves will
be paid within twelve months of the last property sale. In the event a
contingency continues to exist or arises, reserves may be held by the
Partnership for a longer period of time.
<PAGE>
BALCOR REALTY INVESTORS 86-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibits:
(4) Form of Subscription Agreement set forth as Exhibit 4.1 to Amendment No. 1
of the Registrant's Registration Statement on Form S-11 dated December 16, 1985
(Registration No. 33-361), and Form of Confirmation regarding Interests in the
Partnership set forth as Exhibit 4.2 to the Registrant's Report on Form 10-Q
for the quarter ended June 30, 1992 (Commission File No. 0-15649) are
incorporated herein by reference.
(10) Material Contracts:
(a)(i) The Agreement of Sale and attachment thereto relating to the sale of
Pines of Cloverlane Apartments previously filed as Exhibit 2 to the
Registrant's Current Report on Form 8-K dated January 25, 1996 is incorporated
herein by reference.
(ii) First, Second and Third Amendments to Agreement of Sale relating to the
sale of Pines of Cloverlane Apartments previously filed as Exhibits (10)(ii),
(10)(iii) and (10)(iv), respectively, to the Registrant's Report on Form 10-K
for the year ended December 31, 1995 is incorporated herein by reference.
(b) The Agreement of Sale and attachment thereto relating to the sale of the
Lakeside Apartments previously filed as Exhibit 2 to the Registrant's Current
Report on Form 8-K dated February 21, 1996 is incorporated herein by reference.
(c)(i) The Agreement of Sale and attachment thereto relating to the sale of
Lakeville Resort Apartments previously filed as Exhibit 2 to the Registrant's
Current Report on Form 8-K dated April 23, 1996 is incorporated herein by
reference.
(ii) Master Amendment and Agreement dated May 22, 1996 relating to the sale of
Lakeville Resort Apartments, Petaluma, California, previously filed as Exhibit
(10)(c)(ii) to the Registrant's Report on Form 10-Q for the quarter ended June
30, 1996 is incorporated herein by reference.
(iii) Master Amendment and Agreement #2 dated May 22, 1996 relating to the sale
of Lakeville Resort Apartments, Petaluma, California, previously filed as
Exhibit (10)(c)(iii) to the Registrant's Report on Form 10-Q for the quarter
ended June 30, 1996 is incorporated herein by reference.
(iv) Letter Agreements dated May 22, 1996 and July 8,1996 relating to the sale
of Lakeville Resort Apartments, Petaluma, California, previously filed as
Exhibit (10)(c)(iv) to the Registrant's Report on Form 10-Q for the quarter
ended June 30, 1996 is incorporated by reference.
<PAGE>
(v) Letter Agreements dated August 20, 1996, September 19, 1996 and September
30, 1996 relating to the sale of Lakeville Resort Apartments, Petaluma,
California, previously filed as Exhibit (99)(a) to the Registrant's Report on
Form 8-K dated August 16, 1996 are incorporated herein by reference.
(d)(i) The Agreement of Sale relating to the sale of Brighton Townhomes
previously filed as Exhibit (10)(v) to the Registrant's Report on Form 10-Q for
the quarter ending June 30, 1996 is incorporated herein by reference.
(ii) First Amendment to Agreement of Sale and Escrow Agreement dated May 31,
1996 relating to the sale of Brighton Townhomes, Washington County, Oregon,
previously filed as Exhibit (10)(d)(ii) to the Registrant's Report on Form 10-Q
for the quarter ended June 30, 1996 is incorporated herein by reference.
(iii) Letter of Termination dated June 12, 1996 relating to the sale of
Brighton Townhomes, Washington County, Oregon, previously filed as Exhibit
(10)(d)(iii) to the Registrant's Report on Form 10-Q for the quarter ended June
30, 1996 is incorporated herein by reference.
(iv) Reinstatement and Second Amendment to Agreement of Sale and Escrow
Agreement dated June 13, 1996 relating to the sale of Brighton Townhomes,
Washington County, Oregon, previously filed as Exhibit (10)(d)(iv) to the
Registrant's Report on Form 10-Q for the quarter ended June 30, 1996 is
incorporated herein by reference.
(v) Letter of Extension dated July 8, 1996 relating to the sale of Brighton
Townhomes, Washington County, Oregon, previously filed as Exhibit (10)(d)(v) to
the Registrant's Report on Form 10-Q for the quarter ended June 30, 1996 is
incorporated herein by reference.
(e) Agreement of Sale and attachment thereto relating to the sale of Cedar
Crest Apartments, Overland Park, Kansas, previously filed as Exhibit (2) to the
Registrant's Current Report on Form 8-K dated August 16, 1996 is incorporated
herein by reference.
(27) Financial Data Schedule of the Registrant for the nine months ending
September 30, 1997 is attached hereto.
(b) Reports on Form 8-K: No reports were filed in Form 8-K during the quarter
ended September 30, 1997.
<PAGE>
SIGNATURES
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, thereunto duly authorized.
BALCOR REALTY INVESTORS 86-SERIES I
A REAL ESTATE LIMITED PARTNERSHIP
By: /s/Thomas E. Meador
--------------------------------
Thomas E. Meador
President and Chief Executive Officer
(Principal Executive Officer) of Balcor
Partners - XIX, the General Partner
By: /s/Jayne A. Kosik
---------------------------------
Jayne A. Kosik
Managing Director and Chief Financial Officer
(Principal Accounting Officer) of Balcor
Partners XIX, the General Partner
Date: November 13, 1997
------------------------
<PAGE>
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<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 2005
<SECURITIES> 0
<RECEIVABLES> 342
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2347
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2347
<CURRENT-LIABILITIES> 74
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2273
<TOTAL-LIABILITY-AND-EQUITY> 2347
<SALES> 0
<TOTAL-REVENUES> 1003
<CGS> 0
<TOTAL-COSTS> 144
<OTHER-EXPENSES> 170
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 38
<INCOME-PRETAX> 651
<INCOME-TAX> 0
<INCOME-CONTINUING> 651
<DISCONTINUED> 0
<EXTRAORDINARY> 162
<CHANGES> 0
<NET-INCOME> 489
<EPS-PRIMARY> 8.02
<EPS-DILUTED> 8.02
</TABLE>
