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
Date of Report (Date of earliest event reported) May 10, 1995
Brauvin Income Properties L. P. 6
(Exact name of registrant as specified in its charter)
Delaware 0-16857 36-1276801
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
organization) Number)
150 South Wacker Drive, Suite 3200, Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 443-0922
Not Applicable
(Former name or former address, if changed since last report)
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Item 2. Acquisition or Disposition of Assets
As reported on the Current Report on Form 8-K filed with the Securities and
Exchange Commission dated August 23, 1994, Brauvin/The Annex of Schaumburg
Associates, a joint venture (the "Joint Venture") filed a voluntary petition
for bankruptcy (Chapter 11) in the United States Bankruptcy Court in the
Northern District of Illinois. The Joint Venture has two
partners, Brauvin Real Estate Fund L.P. 5 ( the "BREF5") and
Brauvin Income Properties L.P. 6 (the "Partnership"), both Delaware limited
partnerships. The Partnership is a 46% partner of the Joint
Venture and BREF5 is a 54% partner of the Joint Venture. On
February 10, 1995, the Bankruptcy Court ordered the dismissal of the voluntary
petition for bankruptcy effectively eliminating the
protection of the property from its creditors.
As reported on the Current Report on Form 8-K filed with the
Securities and Exchange Commission dated February 15, 1995, AUSA Life
Insurance Company ("AUSA") filed a motion for appointment of a receiver
against the Joint Venture. On February 17, 1995, the motion
was granted and an order was issued. The receiver had full power
and authority to operate, manage and conserve the mortgage real estate,
commonly know as the Annex of Schaumburg (the "Annex"),
pursuant to the order. On February 15, 1995, the Joint Venture
received an amended notice of mortgage foreclosure from AUSA. The Joint
Venture had until March 17, 1995 to file an answer
to the amended notice. Since the Joint Venture did not answer on
or before March 17, 1995, default was entered against the Joint Venture and
a judgement in accordance with the request for relief.
On April 3, 1995, a judgment of foreclosure and sale was entered
into against the Joint Venture. On May 10, 1995, the Annex was sold to AUSA
in a foreclosure sale, conducted by the Sheriff of Cook County, pursuant to
the judgement of foreclosure, however, the Joint Venture
did not receive notice of sale until May 22, 1995.
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Item 7. Financial Statements and Exhibits
(b) Pro Forma Financial Statements.
The pro forma information included herein is presented for the
year ended December 31, 1994 and the three months ended March 31, 1995,
corresponding to the periods of the Partnership's annual and quarterly
financial statements most recently filed with the Securities and
Exchange Commission. The pro forma income statements and balance
sheets reflect the Partnership's operations, assets and liabilities as
originally reported and then as revised to exclude the Annex.
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BRAUVIN INCOME PROPERTIES L.P. 6
PRO FORMA BALANCE SHEET
(Disposition of Brauvin/The Annex of Schaumburg)
March 31, 1995
(Unaudited)
Historical Pro Forma Pro Forma
Results Adjustments Results
ASSETS
Cash and cash equivalents $ 651,542 $ -- $651,542
Escrow and other deposits 84,726 -- 84,726
Due from affiliates 26,415 -- 26,415
Tenant receivables 151,689 -- 151,689
Other assets 82,704 -- 82,704
Investment in (liability to)
affiliated joint venture (233,753) (233,753) --
763,323 (233,753) 997,076
Investment in real estate, at cost:
Land 2,756,651 -- 2,756,651
Buildings 10,596,134 -- 10,596,134
13,352,785 -- 13,352,785
Less: accumulated
depreciation (2,434,762) -- (2,434,762)
Total investment in real
estate, net 10,918,023 -- 10,918,023
Total Assets $11,681,346 $(233,753) $11,915,099
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accounts payable and
accrued expenses $ 184,770 $ -- $184,770
Security deposits 6,747 -- 6,747
Mortgages payable 7,626,331 -- 7,626,331
Total Liabilities 7,817,848 -- 7,817,848
Partners' Capital
General Partners 4,584 (2,338) 6,922
Limited Partners 3,858,914 (231,415) 4,090,329
Total Partners' Capital 3,863,498 (233,753) 4,097,251
Total Liabilities and
Partners' Capital $11,681,346 $(233,753) $11,915,099
See Notes to Pro Forma Financial Statements
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BRAUVIN INCOME PROPERTIES L.P. 6
PRO FORMA STATEMENT OF INCOME
(Disposition of Brauvin/The Annex of Schaumburg)
For the Three Months Ended March 31, 1995
(Unaudited)
Historical Pro Forma Pro Forma
Results Adjustments Results
INCOME
Rental $456,434 $ -- $456,434
Interest 5,777 -- 5,777
Other, primarily expense
reimbursements 81,147 -- 81,147
Total income 543,358 -- 543,358
EXPENSES
Mortgage and other interest 262,955 -- 262,955
Depreciation and amortization 93,769 -- 93,769
Real estate taxes 33,300 -- 33,300
Repairs and maintenance 20,517 -- 20,517
Other property operating 71,493 -- 71,493
General and administrative 50,081 -- 50,081
Total expenses 532,115 -- 532,115
Net income before equity
interest in Joint Venture 11,243 -- 11,243
Equity interest in Joint
Venture's net loss (2,638) (2,638) --
Net Income $ 8,605 $(2,638) $11,243
Net Income Per Limited
Partnership Interest
(7,842.5 Units) $1.09 $(0.33) $1.42
See Notes to Pro Forma Financial Statements.
<PAGE>
BRAUVIN INCOME PROPERTIES L.P. 6
PRO FORMA BALANCE SHEET
(Disposition of Brauvin/The Annex of Schaumburg)
December 31, 1994
(Unaudited)
Historical Pro Forma Pro Forma
Results Adjustments Results
ASSETS
Cash and cash equivalents $ 445,771 $ -- $445,771
Escrow and other deposits 74,840 -- 74,840
Due from affiliates 29,171 -- 29,171
Tenant receivables 269,955 -- 269,955
Other assets 71,536 -- 71,536
Investment in (liability to)
joint venture (231,115) (231,115) --
660,158 (231,115) 891,273
Investment in real estate, at cost:
Land 2,756,651 -- 2,756,651
Buildings 10,596,134 -- 10,596,134
13,352,785 -- 13,352,785
Less: accumulated depreciation (2,344,202) -- (2,344,202)
Total investment in real
estate, net 11,008,583 -- 11,008,583
Total Assets $ 11,668,741 $(231,115) $11,899,856
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accounts payable and
accrued expenses $ 108,644 $ -- $108,644
Security deposits 6,747 -- 6,747
Mortgages payable 7,658,921 -- 7,658,921
Total Liabilities 7,774,312 -- 7,774,312
Partners' capital
General Partners 4,498 (2,311) 6,809
Limited Partners 3,889,931 (228,804) 4,118,735
Total Partners' Capital 3,894,429 (231,115) 4,125,544
Total Liabilities and
Partners' Capital $11,668,741 $(231,115) $11,899,856
See Notes to Pro Forma Financial Statements.
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BRAUVIN INCOME PROPERTIES L.P. 6
PRO FORMA STATEMENT OF INCOME
(Disposition of Brauvin/The Annex of Schaumburg)
For the Year Ended December 31, 1994
(Unaudited)
Historical Pro Forma Pro Forma
Results Adjustments Results
INCOME
Rental $1,817,802 $ -- $1,817,802
Interest 9,878 -- 9,878
Other, primarily
expense reimbursements 392,617 -- 392,617
Total income 2,220,297 -- 2,220,297
EXPENSES
Mortgages and other
interest 765,221 -- 765,221
Depreciation and
amortization 387,589 -- 387,589
Real estate taxes 129,366 -- 129,366
Repairs and maintenance 79,065 -- 79,065
Operating 284,570 -- 284,570
General and administrative 197,404 -- 197,404
Total expenses 1,843,215 -- 1,843,215
Net income before
equity interest in
Joint Venture 377,082 -- 377,082
Equity interest in
Joint Venture's net loss (484,056) (484,056) --
Net (Loss) Income $ (106,974) $(484,056) $377,082
Net (Loss) Income Per
Limited Partnership
Interest (7,842.5 Units) $(13.50) $(61.10) $47.60
See Notes to Pro Forma Financial Statements.
<PAGE>
BRAUVIN INCOME PROPERTIES L.P. 6
NOTES TO PRO FORMA FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The unaudited pro forma condensed financial statements
are based upon the Brauvin Income Properties L.P. 6's (the "Partnership")
audited financial statements for the year ended
December 31, 1994 with pro forma adjustments based on the
Partnership's disposition of the Brauvin/The Annex of Schaumburg (the "Annex").
The pro forma adjustments reflect the financial effect of
the disposition as if it had been consummated on January 1, 1994 and are
described in detail by the following footnotes.
2 Property
The Annex is stated at cost including adjustments for acquisition costs,
leasing commissions and tenant improvements. Depreciation and amortization
are recorded on a straight-line basis over the estimated economic lives of
the properties, which approximate 38 years, and applicable lease terms,
respectively.
The Partnership makes periodic assessments concerning possible permanent
impairment to the value of its properties. In the event that the Partnership
determines that a permanent impairment in value has occurred, the carrying
basis of that property is reduced to its estimated fair value.
3. Cash Equivalents
The Partnership considers all highly liquid investments with a maturity
of 90 days or less when purchased to be a cash equivalent.
4. Mortgage Payable
On August 23, 1994, the Brauvin/The Annex of Schaumburg (the "Joint
Venture") filed a voluntary petition for bankruptcy (Chapter 11) in the
United States Bankruptcy Court in the Northern District of Illinois. The
Joint Venture has two partners, the Partnership and Brauvin Real
Estate Fund L.P. 5 ("BREF5"), both Delaware limited partnerships.
The Partnership is a 46% partner of the Joint Venture and BREF5 is a 54%
partner of the Joint Venture. On February 10, 1995, the Bankruptcy Court
ordered the dismissal of the voluntary petition for bankruptcy effectively
eliminating the protection of the property from its creditors.
Also on February 10, 1995, AUSA Life Insurance Company ("AUSA") filed a
motion for appointment of a receiver against the Joint
Venture. On February 17, 1995, the motion was granted and an order
was issued. The receiver will have full power and authority to operate,
manage and conserve the Annex pursuant to the order. On
February 15, 1995, the Joint Venture received an amended notice of
mortgage foreclosure from AUSA. The Joint Venture had until March 17, 1995
to file an answer to the amended notice. Since the Joint Venture did not
answer on or before March 17, 1995, default was entered against the Joint
Venture and a judgement in accordance with the request for relief.
On April 3, 1995, a judgment of foreclosure and sale was entered into
against the Joint Venture. On May 10, 1995, the Annex was
sold to AUSA in a foreclosure sale, conducted by the Sheriff of
Cook County, pursuant to the judgement of foreclosure.
<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.
BRAUVIN INCOME PROPERTIES L.P. 6
By: Brauvin 6, Inc.
Corporate General Partner
By: /s/ Jerome J. Brault
President and Chief Executive Officer
Dated: May 24, 1995
