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, 1995
------------------
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 0-15646
-------
BALCOR GROWTH FUND
A REAL ESTATE INVESTMENT FOR CAPITAL APPRECIATION
-------------------------------------------------------
(Exact name of registrant as specified in its charter)
Illinois 36-3378299
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2355 Waukegan Road
Bannockburn, Illinois 60015
----------------------------------------- -------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 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 GROWTH FUND
A REAL ESTATE INVESTMENT FOR CAPITAL APPRECIATION
(An Illinois Limited Partnership)
BALANCE SHEETS
September 30, 1995 and December 31, 1994
(Unaudited)
ASSETS
1995 1994
---------- ----------
Cash and cash equivalents $ 155,371 $ 37,514
Accounts receivable 5,385
Investment in joint ventures with affiliates 874,762 972,320
---------- ----------
$1,035,518 $1,009,834
========== ==========
LIABILITIES AND PARTNERS' DEFICIT
Loan payable - affiliate $1,035,645 $ 731,645
Accounts payable 3,639 14,556
Due to affiliates 166,125 139,292
---------- ----------
Total liabilities 1,205,409 885,493
Affiliate's participation in joint venture 345,669 383,661
Partners' deficit (7,084 Limited Partnership
Interests issued and outstanding) (515,560) (259,320)
---------- ----------
$1,035,518 $1,009,834
========== ==========
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR GROWTH FUND
A REAL ESTATE INVESTMENT FOR CAPITAL APPRECIATION
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the nine months ended September 30, 1995 and 1994
(Unaudited)
1995 1994
---------- ----------
Expenses:
Interest on short-term loan from an affiliate $ 45,059 $ 27,227
Administrative 123,912 117,734
Participation in losses from joint ventures
with affiliates 80,058 260,845
---------- ----------
Total expenses 249,029 405,806
---------- ----------
Loss before affiliate's participation in (income)
loss from joint venture (249,029) (405,806)
Affiliate's participation in (income) loss from
joint venture (7,211) 21,062
---------- ----------
Net loss $ (256,240) $ (384,744)
========== ==========
Net loss allocated to General Partner $ (2,562) $ (3,847)
========== ==========
Net loss allocated to Limited Partners $ (253,678) $ (380,897)
========== ==========
Net loss per Limited Partnership Interest
(7,084 issued and outstanding) $ (35.81) $ (53.77)
========== ==========
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR GROWTH FUND
A REAL ESTATE INVESTMENT FOR CAPITAL APPRECIATION
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the quarters ended September 30, 1995 and 1994
(Unaudited)
1995 1994
---------- ----------
Expenses:
Interest on short-term loan from an affiliate $ 15,872 $ 10,537
Administrative 35,652 40,998
Participation in losses from joint ventures
with affiliates 48,314 89,468
---------- ----------
Total expenses 99,838 141,003
---------- ----------
Loss before affiliate's participation in loss
from joint venture (99,838) (141,003)
Affiliate's participation in loss from joint
venture 3,336 5,987
---------- ----------
Net loss $ (96,502) $ (135,016)
========== ==========
Net loss allocated to General Partner $ (965) $ (1,350)
========== ==========
Net loss allocated to Limited Partners $ (95,537) $ (133,666)
========== ==========
Net loss per Limited Partnership Interest
(7,084 issued and outstanding) $ (13.49) $ (18.87)
========== ==========
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR GROWTH FUND
A REAL ESTATE INVESTMENT FOR CAPITAL APPRECIATION
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
for the nine months ended September 30, 1995 and 1994
(Unaudited)
1995 1994
---------- ----------
Operating activities:
Net loss $ (256,240) $ (384,744)
Adjustments to reconcile net loss to net cash
used in operating activities:
Affiliate's participation in income (loss)
from joint venture 7,211 (21,062)
Participation in losses from joint ventures
with affiliates 80,058 260,845
Net change in:
Accounts receivable (5,385)
Accounts payable (10,917) (7,278)
Due to affiliates 26,833 51,317
---------- ----------
Net cash used in operating activities (158,440) (100,922)
---------- ----------
Investing activities:
Capital contributions to joint venture with
an affiliate (157,500) (27,000)
Distribution from joint venture with an affiliate 175,000 90,000
---------- ----------
Net cash provided by investing activities 17,500 63,000
---------- ----------
Financing activities:
Proceeds from loan payable - affiliate 304,000 20,000
Distribution to joint venture partner -
affiliate (45,203) (23,247)
---------- ----------
Net cash provided by or used in financing
activities 258,797 (3,247)
---------- ----------
Net change in cash and cash equivalents 117,857 (41,169)
Cash and cash equivalents at beginning of period 37,514 43,067
---------- ----------
Cash and cash equivalents at end of period $ 155,371 $ 1,898
========== ==========
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR GROWTH FUND
A REAL ESTATE INVESTMENT FOR CAPITAL APPRECIATION
(An Illinois Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
1. Accounting Policy:
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, 1995, and all such adjustments are of a normal and
recurring nature.
2. Transactions with Affiliates:
Expenses paid and payable by the Partnership to affiliates during the nine
months and quarter ended September 30, 1995 are:
Paid
-------------------------
Nine Months Quarter Payable
------------- -------- ---------
Reimbursement of expenses to
the General Partner, at cost $61,213 $6,022 $7,520
As of September 30, 1995, $1,035,645 is owed to the General Partner, $304,000
of which was borrowed during the nine months ended September 30, 1995. During
the nine months ended September 30, 1995 and 1994, the Partnership incurred
interest expense of $45,059 and $27,227, respectively. The Partnership paid no
interest expense during either period. As of September 30, 1995, interest
expense of $158,605 is payable. Interest expense was computed at the American
Express Company cost of funds rate plus a spread to cover administrative costs.
As of September 30, 1995, this rate was 6.307%.
<PAGE>
BALCOR GROWTH FUND
A REAL ESTATE INVESTMENT FOR CAPITAL APPRECIATION
(An Illinois Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS
Balcor Growth Fund A Real Estate Investment for Capital Appreciation (the
"Partnership") was formed in 1985 to invest in and operate income-producing
real property. The Partnership raised $7,084,000 from sales of Limited
Partnership Interests and utilized these proceeds to acquire joint venture
interests in two real properties. The Partnership is currently involved in the
operation of these joint ventures.
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 1994 for a more complete understanding of
the Partnership's financial position.
Operations
- ----------
Summary of Net Loss
- -------------------
The operations of the Partnership are primarily comprised of the Partnership's
participation in the operations of the Post Lake and Redwood Shores apartment
complexes. As a result of improved operations at both properties, the
Partnership's net loss decreased during the nine months and quarter ended
September 30, 1995 as compared to the same periods in 1994. Further discussion
of the Partnership's operations is summarized below.
1995 Compared to 1994
- ---------------------
Unless otherwise noted, discussions of fluctuations between 1995 and 1994 refer
to both the quarter and nine months ended September 30, 1995 and 1994.
Post Lake Apartments generated net income during the nine months ended
September 30, 1995 as compared to a net loss during the same period in 1994 and
generated a smaller net loss during the quarter ended September 30, 1995 as
compared to the same period in 1994 primarily as a result of higher rental
income due to higher rental rates and occupancy. These improvements resulted in
affiliate's participation in income from joint venture during the nine months
ended September 30, 1995 as compared to a participation in loss during the same
period in 1994.
The net loss from Redwood Shores Apartments decreased during 1995 as compared
to 1994 as a result of higher rental income due to increased occupancy and a
higher seller's participation in loss of joint venture, as discussed below.
These items were partially offset by higher property operating expenses as a
result of higher repairs and maintenance costs.
The seller's participation in the loss of Redwood Shores is equal to the lesser
of the seller's capital contributions during the year or the seller's 30% share
<PAGE>
of the property operating loss. Due to higher capital contributions in 1995
than 1994, the seller participation was higher during 1995 as compared to 1994.
As a result of higher interest rates and outstanding balances during 1995,
interest expense on the Partnership's short-term loan with an affiliate
increased during 1995 as compared to 1994.
Primarily as a result of lower accounting fees, administrative expenses
decreased during the quarter ended September 30, 1995 as compared to the same
period in 1994.
Liquidity and Capital Resources
- -------------------------------
The cash position of the Partnership increased as of September 30, 1995 as
compared to December 31, 1994, due primarily to borrowings from an affiliate
which were partially used to fund capital contributions to Redwood Partners, as
described below, for its share of certain costs associated with the
re-marketing of the Redwood Shores bonds.
The Partnership classifies the cash flow performance of the properties as
either positive, a marginal deficit or a significant deficit, each after
consideration of debt service payments. A deficit is considered to be
significant if it exceeds $250,000 annually or 20% of the property's rental and
service income. The Partnership defines cash flow generated from the properties
as an amount equal to the property's revenue receipts less property related
expenditures, which include debt service payments. During the nine months ended
September 30, 1995 and 1994, Post Lake Apartments generated positive cash flow
and Redwood Shores Apartments generated a marginal cash flow deficit. During
the nine months ended September 30, 1995 and 1994, the mortgage financing on
the Redwood Shores Apartments required principal payments of $287,500 and
$260,000, respectively, which caused the deficits. The joint venture partners
of Redwood Shores (Redwood Partners and the seller) are required to fund their
share of any cash flow deficit the property generates.
While the cash flow of the properties in which the Partnership holds joint
venture interests has improved, the General Partner continues to pursue a
number of actions aimed at improving the cash flow of these properties
including refinancing of mortgage loans, improving property operating
performance, and seeking rent increases where market conditions allow. As of
September 30, 1995, both Redwood Shores Apartments and Post Lake Apartments had
an occupancy rate of 99%.
Each of the properties is owned through the use of third-party mortgage loan
financing and, therefore, the Partnership is subject to the financial
obligations required by such loans. In October 1995, the Redwood Shores joint
venture completed the re-marketing of the $25,630,000 bonds collateralized by
the Redwood Shores Apartments. The principal and bond reserve were unchanged
and the interest rate was reduced from 8.75% to 5.20%. The principal will
initially be amortized by $200,000 semi-annually. The semi-annual amortization
will subsequently increase by $10,000 or $15,000 for each six-month period
thereafter through the next tender/re-marketing date, October 2000. The
maturity date of the bonds is September 2008. The joint venture paid
refinancing fees of $320,000 and Redwood Partners paid legal fees of $11,005 in
connection with the re-marketing.
<PAGE>
As of September 30, 1995, $1,035,645 is owed to the General Partner. The
General Partner may continue to provide additional short-term loans to the
Partnership for working capital or liquidity purposes, although there is no
assurance that such loans will be available. Should such short-term loans not
be available, the General Partner will seek alternative third party sources of
financing working capital. However, the current economic environment and its
impact on the real estate industry make it unlikely that the Partnership would
be able to secure financing from third parties to fund working capital needs or
operating deficits. Should additional borrowings be needed and not be available
either through the General Partner or third parties, the Partnership may be
required to dispose of one or both of its joint venture interests to satisfy
these obligations. It is not expected that the Partnership will generate
substantial Net Cash Receipts, and any cash flow that is generated is expected
to be used to finance the Partnership's share of improvements that are intended
to enhance the value of the properties and to repay General Partner advances.
The Redwood Shores and Post Lake apartment complexes may not currently be sold
on terms which are advantageous to the Partnership and it may be necessary for
the joint ventures to retain ownership of the properties for longer than the
holding period originally projected in the Prospectus.
Inflation has several types of potentially conflicting impacts on real estate
investments. Short-term inflation can increase real estate operating costs
which may or may not be recovered through increased rents and/or sales prices,
depending on general or local economic conditions. In the long-term, inflation
can be expected to increase operating costs and replacement costs and may lead
to increased rental revenues and real estate values.
<PAGE>
BALCOR GROWTH FUND
A REAL ESTATE INVESTMENT FOR CAPITAL APPRECIATION
(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. 3
dated October 1, 1986 to the Registrant's Registration Statement on Form S-11
(Registration No. 33-4963) and Form of Confirmation regarding Interests in the
Registrant 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. 0-15646) are incorporated
herein by reference.
(27) Financial Data Schedule of the Registrant for the nine month period ending
September 30, 1995 is attached hereto.
(b) Reports on Form 8-K: There were no reports filed on Form 8-K during the
quarter ended September 30, 1995.
<PAGE>
ATLANTA LAKES JOINT VENTURE
(An Illinois General Partnership)
<PAGE>
ATLANTA LAKES JOINT VENTURE
(An Illinois General Partnership)
BALANCE SHEETS
September 30, 1995 and December 31, 1994
(Unaudited)
ASSETS
1995 1994
----------- -----------
Cash and cash equivalents $ 69,512 $ 47,918
Escrow deposits 262,944 92,357
Accounts and accrued interest receivable 233,148 207,180
Deferred expenses, net of accumulated amorti-
zation of $184,998 in 1995 and $168,513 in 1994 34,801 51,286
----------- -----------
600,405 398,741
----------- -----------
Investment in real estate, at cost:
Land 3,794,165 3,794,165
Buildings and improvements 21,297,917 21,297,917
----------- -----------
25,092,082 25,092,082
Less accumulated depreciation 7,460,105 6,970,136
----------- -----------
Investment in real estate, net of accumulated
depreciation 17,631,977 18,121,946
----------- -----------
$18,232,382 $18,520,687
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 3,112
Accrued real estate taxes $ 170,688
Security deposits 110,011 108,009
Mortgage note payable 15,252,164 15,415,878
----------- -----------
Total liabilities 15,532,863 15,526,999
Partners' capital 2,699,519 2,993,688
----------- -----------
$18,232,382 $18,520,687
=========== ===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
ATLANTA LAKES JOINT VENTURE
(An Illinois General Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the nine months ended September 30, 1995 and 1994
(Unaudited)
1995 1994
----------- -----------
Income:
Rental and service $ 3,014,705 $ 2,829,100
Interest on short-term investments 7,913 4,224
----------- -----------
Total income 3,022,618 2,833,324
----------- -----------
Expenses:
Interest on mortgage note payable 1,064,493 1,078,905
Depreciation 489,969 489,969
Amortization of deferred expenses 16,485 16,485
Property operating 1,087,618 1,109,582
Real estate taxes 170,688 173,268
Property management fees 127,725 118,588
Administrative 9,809 9,605
----------- -----------
Total expenses 2,966,787 2,996,402
----------- -----------
Net income (loss) $ 55,831 $ (163,078)
=========== ===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
ATLANTA LAKES JOINT VENTURE
(An Illinois General Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the quarters ended September 30, 1995 and 1994
(Unaudited)
1995 1994
----------- -----------
Income:
Rental and service $ 1,007,600 $ 948,721
Interest on short-term investments 2,721 1,303
----------- -----------
Total income 1,010,321 950,024
----------- -----------
Expenses:
Interest on mortgage note payable 353,569 358,484
Depreciation 163,323 163,323
Amortization of deferred expenses 5,495 5,495
Property operating 412,106 369,062
Real estate taxes 56,896 57,756
Property management fees 42,418 40,323
Administrative 2,345 1,933
----------- -----------
Total expenses 1,036,152 996,376
----------- -----------
Net loss $ (25,831) $ (46,352)
=========== ===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
ATLANTA LAKES JOINT VENTURE
(An Illinois General Partnership)
STATEMENTS OF CASH FLOWS
for the nine months ended September 30, 1995 and 1994
(Unaudited)
1995 1994
----------- -----------
Operating activities:
Net income (loss) $ 55,831 $ (163,078)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation of property 489,969 489,969
Amortization of deferred expenses 16,485 16,485
Net change in:
Escrow deposits (170,587) (172,332)
Accounts and accrued interest receivable (25,968) (23,132)
Accounts payable (3,112) (1,556)
Accrued liabilities 170,688 173,268
Security deposits 2,002 13,764
----------- -----------
Net cash provided by operating activities 535,308 333,388
----------- -----------
Financing activities:
Distribution to Joint Venture Partners (350,000) (180,000)
Principal payments on mortgage note payable (163,714) (149,303)
----------- -----------
Cash used in financing activities (513,714) (329,303)
----------- -----------
Net change in cash and cash equivalents 21,594 4,085
Cash and cash equivalents at beginning of period 47,918 49,917
----------- -----------
Cash and cash equivalents at end of period $ 69,512 $ 54,002
=========== ===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
ATLANTA LAKES JOINT VENTURE
(An Illinois General Partnership)
NOTES TO FINANCIAL STATEMENTS
1. Accounting Policy:
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, 1995, and all such adjustments are of a normal and
recurring nature.
2. Interest Expense:
During the nine months ended September 30, 1995 and 1994, the Partnership
incurred and paid interest expense on the mortgage note payable of $1,064,493
and $1,078,905, respectively.
<PAGE>
REDWOOD PARTNERS
(An Illinois General Partnership)
<PAGE>
REDWOOD PARTNERS
(An Illinois General Partnership)
BALANCE SHEETS
September 30, 1995 and December 31, 1994
(Unaudited)
ASSETS
1995 1994
----------- -----------
Cash and cash equivalents $ 10,211 $ 9,887
Bond reserve 2,478,000 2,478,000
Accounts and accrued interest receivable 276,542 204,228
Prepaid expenses 60,000
Deferred expenses 331,005
----------- -----------
3,155,758 2,692,115
----------- -----------
Investment in real estate, at cost:
Land 6,043,941 6,043,941
Buildings and improvements 22,942,335 22,942,335
----------- -----------
28,986,276 28,986,276
Less accumulated depreciation 7,146,758 6,598,769
----------- -----------
Investment in real estate, net of accumulated
depreciation 21,839,518 22,387,507
----------- -----------
$24,995,276 $25,079,622
=========== ===========
LIABILITIES AND PARTNERS' DEFICIT
Accounts payable $ 3,890
Accrued liabilities $ 72,680
Security deposits 113,414 115,565
Mortgage note payable 25,630,000 25,917,500
----------- -----------
Total liabilities 25,816,094 26,036,955
Seller's participation in joint venture 37,464
Partners' deficit (858,282) (957,333)
----------- -----------
$24,995,276 $25,079,622
=========== ===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
REDWOOD PARTNERS
(An Illinois General Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the nine months ended September 30, 1995 and 1994
(Unaudited)
1995 1994
----------- -----------
Income:
Rental and service $ 2,672,851 $ 2,584,839
Interest on short-term investments 250,870 226,140
----------- -----------
Total income 2,923,721 2,810,979
----------- -----------
Expenses:
Interest on mortgage note payable 1,698,813 1,721,675
Depreciation 547,989 547,989
Property operating 660,140 586,236
Real estate taxes 218,439 212,218
Property management fees 106,947 100,950
Administrative 9,084 30,753
----------- -----------
Total expenses 3,241,412 3,199,821
----------- -----------
Loss before seller's participation in loss of
joint venture (317,691) (388,842)
Seller's participation in loss of joint venture 101,742 30,230
----------- -----------
Net loss $ (215,949) $ (358,612)
=========== ===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
REDWOOD PARTNERS
(An Illinois General Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the quarters ended September 30, 1995 and 1994
(Unaudited)
1995 1994
----------- -----------
Income:
Rental and service $ 893,933 $ 851,165
Interest on short-term investments 82,296 77,032
----------- -----------
Total income 976,229 928,197
----------- -----------
Expenses:
Interest on mortgage note payable 564,923 572,688
Depreciation 182,663 182,663
Property operating 266,131 199,473
Real estate taxes 72,680 70,739
Property management fees 35,928 25,171
Administrative 1,239 16,606
----------- -----------
Total expenses 1,123,564 1,067,340
----------- -----------
Loss before seller's participation in loss of
joint venture (147,335) (139,143)
Seller's participation in loss of joint venture 76,536 6,559
----------- -----------
Net loss $ (70,799) $ (132,584)
=========== ===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
REDWOOD PARTNERS
(An Illinois General Partnership)
STATEMENTS OF CASH FLOWS
for the nine months ended September 30, 1995 and 1994
(Unaudited)
1995 1994
----------- -----------
Operating activities:
Net loss $ (215,949) $ (358,612)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Seller's participation in loss from joint
venture (101,742) (30,230)
Depreciation of property 547,989 547,989
Net change in:
Accounts receivable (72,314) (57,097)
Prepaid expenses (60,000)
Accounts payable (3,890) 2
Accrued liabilities 72,680 70,739
Security deposits (2,151) (3,360)
----------- -----------
Net cash provided by operating activities 164,623 169,431
----------- -----------
Financing activities:
Capital contributions by joint venture partners 315,000 54,000
Capital contributions by joint venture
partner - seller 139,206 30,230
Principal payments on mortgage notes payable (287,500) (260,000)
Payment of deferred expenses (331,005)
----------- -----------
Net cash used in financing activities (164,299) (175,770)
----------- -----------
Net change in cash and cash equivalents 324 (6,339)
Cash and cash equivalents at beginning of period 9,887 19,602
----------- -----------
Cash and cash equivalents at end of period $ 10,211 $ 13,263
=========== ===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
REDWOOD PARTNERS
(An Illinois General Partnership)
NOTES TO FINANCIAL STATEMENTS
1. Accounting Policy:
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, 1995, and all such adjustments are of a normal and
recurring nature.
2. Interest Expense:
During the nine months ended September 30, 1995 and 1994, the Partnership
incurred and paid interest expense on the mortgage note payable of $1,698,813
and $1,721,675, respectively.
3. Subsequent Event:
In October 1995, the Redwood Shores joint venture completed the re-marketing of
the $25,630,000 bonds collateralized by the Redwood Shores Apartments. The
principal and bond reserve were unchanged and the interest rate was reduced
from 8.75% to 5.20%. The principal will initially be amortized by $200,000
semi-annually. The semi-annual amortization will subsequently increase by
$10,000 or $15,000 for each six-month period thereafter through the next
tender/re-marketing date in October 2000. The joint venture paid refinancing
fees of $320,000 and Redwood Partners paid legal fees of $11,005 in connection
with the re-marketing.
The bonds are subject to various redemption options and tender provisions
pursuant to the terms of the trust indenture. The joint venture is obligated
to make principal payments to the extent the bonds are redeemed or mature under
these provisions. Unless there is a prior redemption of all or a part of the
bonds, principal of approximately $16,820,000 will be due in September 2008,
which will require the sale or refinancing of the property.
<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 GROWTH FUND
A REAL ESTATE INVESTMENT FOR CAPITAL
APPRECIATION
By: /s/Thomas E. Meador
-----------------------------
Thomas E. Meador
President and Chief Executive Officer
(Principal Executive Officer) of Balcor
Partners-XX, the General Partner
By: /s/Brian D. Parker
------------------------------
Brian D. Parker
Senior Vice President, and Chief Financial
Officer (Principal Accounting and Financial
Officer) of Balcor Partners-XX, the General
Partner
Date: November 14, 1995
--------------------------
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 155
<SECURITIES> 0
<RECEIVABLES> 5
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 161
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1036
<CURRENT-LIABILITIES> 1205
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> (516)
<TOTAL-LIABILITY-AND-EQUITY> 1036
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 87
<OTHER-EXPENSES> 124
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 45
<INCOME-PRETAX> (256)
<INCOME-TAX> 0
<INCOME-CONTINUING> (256)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (256)
<EPS-PRIMARY> (35.81)
<EPS-DILUTED> (35.81)
</TABLE>
