SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A - Number 2
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 30, 1998
BANYAN STRATEGIC REALTY TRUST
(Exact name of Registrant as specified in its charter)
Massachusetts 0-15465 36-3375345
(State of or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification
incorporation) Number)
150 South Wacker Drive, Suite 2900, Chicago, IL 60606
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 553-9800
This document consists of 7 pages.
Exhibit index is located on page 4.
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS
a) Financial Statements.
(iii) Peachtree Pointe Office Park
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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 hereunto duly authorized.
Date: July 2, 1998 BANYAN STRATEGIC REALTY TRUST
(Registrant)
By: /s/ Joel L. Teglia
Vice President,
Chief Financial and
Accounting Officer
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EXHIBIT INDEX
-------------
a) Financial Statements
(iii) Peachtree Pointe Office Park
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a) FINANCIAL STATEMENTS
(iii) PEACHTREE POINTE OFFICE PARK
----------------------------
Statement of Revenue and
Certain Expenses
PEACHTREE POINTE OFFICE PARK
For the year ended December 31, 1997
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REPORT OF INDEPENDENT AUDITORS
The Board of Directors
Banyan Strategic Realty Trust
We have audited the Statement of Revenue and Certain Expenses of Peachtree
Pointe Office Park (the Property) for the year ended December 31, 1997.
The Statement of Revenue and Certain Expenses is the responsibility of the
Property's management. Our responsibility is to express an opinion on the
Statement of Revenue and Certain Expenses based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the Statement of Revenue and
Certain Expenses is free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
made in the Statement of Revenue and Certain Expenses. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the
Statement of Revenue and Certain Expenses. We believe that our audit
provides a reasonable basis for our opinion.
The accompanying Statement of Revenue and Certain Expenses was prepared for
the purpose of complying with the rules and regulations of the Securities
and Exchange Commission for inclusion in the Current Report on Form 8-K/A
of Banyan Strategic Realty Trust as described in Note 2 and is not intended
to be a complete presentation of the Property's revenue and expenses.
In our opinion, the Statement of Revenue and Certain Expenses referred to
above present fairly, in all material respects, the revenue and certain
expenses of the Property described in Note 2 for the year ended
December 31, in conformity with generally accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
June 19, 1998
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PEACHTREE POINT OFFICE PARK
Statement of Revenue and Certain Expenses
Year Ended
December 31,
1997
------------
REVENUE:
Rental. . . . . . . . . . . . . . . . . . . . . . . . . $868,481
Other . . . . . . . . . . . . . . . . . . . . . . . . . 50,874
--------
Total revenue . . . . . . . . . . . . . . . . . . . . . 919,355
EXPENSES:
Real estate taxes . . . . . . . . . . . . . . . . . . . 49,062
General operating . . . . . . . . . . . . . . . . . . . 249,571
Utilities . . . . . . . . . . . . . . . . . . . . . . . 139,864
Management fees . . . . . . . . . . . . . . . . . . . . 36,901
Insurance . . . . . . . . . . . . . . . . . . . . . . . 9,694
--------
Total expenses 485,092
Revenue in excess of certain expenses . . . . . . . . . . $434,263
========
See accompanying notes.
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PEACHTREE POINTE OFFICE PARK
NOTES TO STATEMENT OF REVENUE AND CERTAIN EXPENSES
1. BUSINESS
The accompanying Statements of Revenue and Certain Expenses relate to
the operations of Peachtree Pointe Office Park (the Property), which
consists of five one-story multi-tenant office buildings located in
Norcross, Georgia. The Property was acquired by a subsidiary of Banyan
Strategic Realty Trust ("Banyan") on January 20, 1998.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying Statement of Revenue and Certain Expenses was
prepared for the purpose of complying with the rules and regulations of the
Securities and Exchange Commission for inclusion in the Current Report on
Form 8-K/A of Banyan. The Statement of Revenue and Certain Expenses is not
representative of the actual operations of the Property for the period
presented nor indicative of future operations as certain expenses,
primarily depreciation, amortization and interest, which may not be
comparable to the expenses expected to be incurred by Banyan in future
operations of the Property, have been excluded.
REVENUE AND EXPENSE RECOGNITION
Revenue is recognized in the period in which it is earned. Expenses
are recognized in the period in which they are incurred.
USE OF ESTIMATES
The preparation of the Statement of Revenue and Certain Expenses in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of revenue and expenses during the reporting periods. Actual
results could differ from these estimates.
3. RELATED PARTY TRANSACTIONS
During the year ended December 31, 1997, the Property paid an asset
management fee to the previous owner of the Property totaling $36,901. The
fee was paid monthly and was based on 4% of gross rental operating
receipts.
4. LEASES AND SIGNIFICANT TENANTS
The Properties had five tenants which accounted for approximately 45%
of the total rental income earned for the year ended December 31, 1997.
