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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported) December 15, 1999
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REAL ESTATE INCOME PARTNERS III, LIMITED PARTNERSHIP
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation or organization)
0-14633 13-33294820
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(Commission file Number) (I.R.S. Employer Identification No.)
27611 La Paz Road, P.O. Box 30009, Laguna Niguel, California 92607-0009
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(Address of principal executive offices) (Zip Code)
(949) 643-7700
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(Registrant's telephone number, including area code)
N/A
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(Former name, former address and former fiscal year,
if changed since last report.)
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REAL ESTATE INCOME PARTNERS III,
LIMITED PARTNERSHIP
ITEM 2. DISPOSITION OF ASSETS
On December 15, 1999, Real Estate Income Partners III, Limited
Partnership ("the Partnership") sold Creek Edge Business Center to Investcorp
Properties Limited, a Deleware Corporation ("Buyer"), for a sale price of
$5,300,000. Affiliates of the Buyer have had a pre-existing relationship with
affiliates of Birtcher Investors for more than 20 years. In fact, an affiliate
of the Buyer initially sold Creek Edge to the Partnership, and subsequently
contracted with the General Partner to perform property management services at
Creek Edge on behalf of the Partnership.
An affiliate of Buyer acted as buyer's broker in the transaction, and
was paid a brokerage commission of $159,000 at closing. In addition, the General
Partner earned and was paid a disposition fee of $132,500 in connection with the
transaction. Buyer did not hire the General Partner or any of its affiliates to
perform asset management or property management services for this property after
close of the sale.
The Partnership realized approximately $5,090,000, or approximately $80
per $1,000 originally invested in the Partnership, in distributable cash
proceeds from the sale of Creek Edge after deducting for closing costs,
commissions (excluding the General Partner's disposition fee) and prorations
totaling approximately $210,000. The General Partner intends to distribute
proceeds from the sale of Creek Edge Business Center immediately.
Currently, two lawsuits are pending against the Partnership and its
General Partner and certain of its affiliates that seek, among things,
unspecified monetary damages. These lawsuits are discussed in the Partnership's
quarterly and annual reports. Since these cases are in the preliminary discovery
phase, there is unavoidable uncertainty regarding their ultimate resolution. The
Partnership Agreement mandates that the General Partner provide for all of the
Partnership's liabilities and obligations, including contingent liabilities,
before distributing liquidation proceeds to its partners. Therefore, the
Partnership will not distribute the remaining liquidation proceeds until the
uncertainty surrounding these lawsuits is sufficiently resolved. The amount and
timing of any distribution of liquidation proceeds will be determined by the
General Partner in light of these and other relevant considerations.
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REAL ESTATE INCOME PARTNERS III,
LIMITED PARTNERSHIP
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
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REAL ESTATE INCOME PARTNERS III
By: BIRTCHER/LIQUIDITY By: BIRTCHER INVESTORS,
PROPERTIES a California limited partnership
(General Partner)
By: BIRTCHER INVESTMENTS,
a California general partnership,
General Partner of Birtcher Investors
By: BIRTCHER LIMITED,
a California limited partnership,
General Partner of Birtcher Investments
By: BREICORP,
a California corporation,
formerly known as Birtcher
Real Estate Inc., General
Partner of Birtcher Limited
Date: December 27, 1999 By: /s/ Robert M. Anderson
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Robert M. Anderson
Executive Director
BREICORP
By: LF Special Fund I, L.P.,
a California limited partnership
By: Liquidity Fund Asset Management, Inc.,
a California corporation, General
Partner of LF Special Fund I, L.P.
Date: December 27, 1999 By: /s/ Brent R. Donaldson
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Brent R. Donaldson
President
Liquidity Fund Asset Management, Inc.
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