UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1994
-----------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
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Commission file number 0-15648
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BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Illinois 36-3447130
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Balcor Plaza
4849 Golf Road, Skokie, Illinois 60077-9894
---------------------------------------- -------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 677-2900
--------------
Securities registered pursuant to Section 12(b) of the Act: None
----
Securities registered pursuant to Section 12(g) of the Act:
Limited Partnership Interests
-----------------------------
(Title of class)
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 [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [ X ]
<PAGE>
PART I
Item 1. Business
----------------
Balcor Equity Pension Investors-IV A Real Estate Limited Partnership (the
"Registrant") is a limited partnership formed in 1986 under the laws of the
State of Illinois. The Registrant raised $46,371,500 from sales of Limited
Partnership Interests. The Registrant's operations consist exclusively of the
operation of income-producing real property, and all financial information
included in this report relates to this industry segment.
The Registrant originally funded one acquisition loan and acquired two real
property investments. The Registrant has two properties and an investment in
joint venture with affiliates in its portfolio as of December 31, 1994. See
Item 2. Properties for additional information. The Partnership Agreement
generally provides that the proceeds of any sale, refinancing or other
disposition of properties will not be reinvested, but will be distributed to
the extent not required to meet the Registrant's cash requirements.
In February 1995, the Registrant and three affiliates acquired title to the 45
West 45th Street Office Building through foreclosure. See Item 3. Legal
Proceedings for additional information.
Retail property performance was buoyed by increasing sales in 1994, reversing
the trend from the early 1990s. Interest rate sensitive sectors - automotive,
home improvement, and home furnishing related goods - have led the retail
industry recovery while other sectors, such as apparel, continue to languish.
The outlook for 1995 will depend on the reaction of consumers to rising
interest rates. With consumers financing the bulk of their purchases, retail
sales levels are particularly sensitive to rising interest rates, which may
increase again in 1995 if economic growth continues at its current pace. The
emergence of different retailing strategies, such as discount stores, power
centers, superstores, catalogs and other forms of home shopping, will continue
to challenge the retail property sector.
During 1994, institutionally owned and managed multi-family residential
properties in many markets continued to experience favorable operating
conditions combined with relatively low levels of new construction. These
favorable operating conditions were supported by the strong pattern of national
economic growth which contributed to job growth and rising income levels in
most local economies. However, some rental markets continue to remain extremely
competitive; therefore, the General Partner's goals are to maintain high
occupancy levels, while increasing rents where possible, and to monitor and
control operating expenses and capital improvement requirements at the
properties. Both of the Registrant's properties generated positive cash flow
during 1994.
Historically, real estate investments have experienced the same cyclical
characteristics affecting most other types of long-term investments. While real
estate values have generally risen over time, the cyclical character of real
estate investments, together with local, regional and national market
conditions, has resulted in periodic devaluations of real estate in particular
markets, as has been experienced in the last few years. As a result of these
factors, it has become necessary for the Registrant to retain ownership of its
properties for longer than the holding period for the assets originally
described in the Prospectus. The General Partner examines the operations of
each property and each local market in conjunction with the Registrant's long-
term dissolution strategy when determining the optimal time to sell each of the
Registrant's properties.
The Registrant, by virtue of its ownership of real estate, is subject to
federal and state laws and regulations covering various environmental issues.
Management of the Registrant utilizes the services of environmental consultants
to assess a wide range of environmental issues and to conduct tests for
environmental contamination as appropriate. The General Partner is not aware
<PAGE>
of any potential liability due to environmental issues or conditions that would
be material to the Registrant.
The officers and employees of Balcor Equity Partners-IV, the General Partner of
the Registrant, and its affiliates perform services for the Registrant. The
Registrant currently has no employees engaged in its operations.
Item 2. Properties
------------------
As of December 31, 1994, the Registrant owns the two properties described
below:
Location Description of Property
-------- -----------------------
Evanston, Illinois Evanston Plaza Shopping Center: a neighborhood
shopping center containing approximately 170,000
square feet located on approximately 13 acres.
Dade County, Florida Gleneagles Apartments: a 292-unit apartment
complex located on approximately 14 acres.
The Registrant also holds a minority joint venture interest with affiliates in
the 45 West 45th Street Office Building in New York, New York.
See Notes to Financial Statements for other information regarding real property
investments.
In the opinion of the General Partner, the Registrant has provided for adequate
insurance coverage for its real estate investment properties.
Item 3. Legal Proceedings
-------------------------
45 West 45th Street Office Building
-----------------------------------
In 1988 and 1989, the Registrant and three affiliates (together, the
"Participants"), funded a $23,000,000 loan to 45 West 45th Street Associates
collateralized by a first priority lien on the 45 West 45th Street Office
Building, New York City, New York. The Registrant's share of the loan is
$3,500,000, for a participating percentage of approximately 15%.
In 1991, the loan was placed in default due to the failure of the borrower to
make payments due under the loan. After modification negotiations were
unsuccessful, the borrower agreed to an uncontested foreclosure (Balcor
Mortgage Advisors, Inc. vs. 45 W. 45th Street Associates, Supreme Court of the
State of New York, City of New York Case No.: 128631/94). The Participants
were the successful bidder at the foreclosure sale and, on February 2, 1995, a
limited partnership in which each of the Participants holds an interest equal
to its participating percentage in the loan obtained title to the property.
Item 4. Submission of Matters to a Vote of Security Holders
-----------------------------------------------------------
No matters were submitted to a vote of the Limited Partners of the Registrant
during 1994.
<PAGE>
PART II
Item 5. Market for the Registrant's Common Equity and Related Stockholder
-------------------------------------------------------------------------
Matters
-------
There has not been an established public market for Limited Partnership
Interests and it is not anticipated that one will develop. For information
regarding distributions, see Financial Statements, Statements of Partners'
Capital and Item 7. Liquidity and Capital Resources, below.
As of December 31, 1994, the number of record holders of Limited Partnership
Interests of the Registrant was 6,680.
Item 6. Selected Financial Data
-------------------------------
Year ended December 31,
----------------------------------------------------------
1994 1993 1992 1991 1990
---------- ---------- ---------- ---------- ----------
Total income $5,088,403 $ 4,602,316 $4,728,736 $4,603,781 $4,653,325
Net income (loss) 1,144,130 339,089 698,621 (1,923,708) 877,104
Net income (loss)
per Limited
Partnership
Interests
outstanding 5.14 .81 2.67 (11.28) 3.61
Total assets 28,010,591 28,709,441 30,454,887 31,846,219 35,754,484
Distributions
per taxable
Limited Partner-
ship Interest 11.28 10.08 10.83 9.87 8.90
Distributions
per tax-exempt
Limited Partner-
ship Interest 10.09 10.53 10.00 10.00 9.59
Item 7. Management's Discussion and Analysis of Financial Condition and
-----------------------------------------------------------------------
Results of Operations
---------------------
Summary of Operations
---------------------
During 1993, Balcor Equity Pension Investors - IV A Real Estate Limited
Partnership (the "Partnership") recognized a provision for a writedown on its
investment in the 45 West 45th Street Office Building due to a determination
that an impairment in the value of the property had occurred. As a result, net
income increased during 1994 as compared to 1993, and decreased during 1993 as
compared to 1992. Further discussion of the Partnership's operations is
summarized below.
Operations
----------
1994 Compared to 1993
---------------------
Due to increased rental rates at the Gleneagles Apartments and Evanston Plaza
Shopping Center, rental income increased during 1994 as compared to 1993.
Increased real estate tax and common area maintenance reimbursements from
tenants at the Evanston Plaza Shopping Center resulted in higher service income
during 1994 as compared to 1993. Property management fees, which are earned as
a percentage of rental and service income collected, also increased for this
<PAGE>
period.
As a result of higher interest rates earned on short-term investments and
higher average cash balances available for investment, interest income on
short-term investments increased during 1994 as compared to 1993.
Due to increased insurance and payroll costs at both the Gleneagles Apartments
and Evanston Plaza Shopping Center, property operating expenses increased
during 1994 as compared to 1993.
Increased expenditures for roof repairs, painting and appliances at the
Gleneagles Apartments resulted in an increase in maintenance and repairs
expenses during 1994 as compared to 1993.
As a result of higher accounting, legal and portfolio management fees,
administrative expenses increased during 1994 as compared to 1993.
The Partnership recognized a provision for a writedown of $900,000 during 1993
due to a determination that an impairment in the value of the 45 West 45th
Street Office Building had occurred. No provision was recognized in 1994. As a
result, the Partnership recognized participation in income of joint venture
with affiliates during 1994 as compared to participation in loss during 1993.
1993 Compared to 1992
---------------------
Rental rates increased at the Gleneagles Apartments due to improved market
conditions where the property is located. As a result, rental income increased
during 1993 as compared to 1992.
Lower interest rates earned on short-term investments and lower average funds
available for investment resulted in a decrease in interest income on short-
term investments during 1993 as compared to 1992.
Personal property at the Gleneagles Apartments became fully depreciated during
the second quarter of 1992. As a result, depreciation expense decreased during
1993 as compared to 1992.
Increased expenditures for grounds maintenance were incurred at the Evanston
Plaza Shopping Center during 1993. This was the primary reason for the increase
in maintenance and repair expenses during 1993 as compared to 1992.
The property valuation assessment received from taxing authorities increased on
the Evanston Plaza Shopping Center resulting in an increase in real estate
taxes during 1993 as compared to 1992.
During 1993, the Partnership incurred higher accounting and portfolio
management fees which resulted in an increase in administrative expenses during
1993 as compared to 1992.
The Partnership reclassified its investment in the 45 West 45th Street Office
Building loan to an investment in joint venture with affiliates and recognized
a participation in loss of joint venture with affiliates in 1993. This
represents the Partnership's share of the property's operations as well as the
amortization of loan application and processing fees which related to the loan.
In addition, the Partnership recognized a provision for a writedown of $900,000
and $438,100 in 1993 and 1992, respectively, due to the determination that an
impairment of the value of the property had occurred.
Liquidity and Capital Resources
-------------------------------
The cash position of the Partnership at December 31, 1994 increased when
compared to December 31, 1993. Operating activities included cash flow from the
operations of the Partnership's properties and short-term investments, which
were partially offset by the payment of administrative expenses. Financing
<PAGE>
activities consisted of distributions to the Partners and leasing commissions
at the Evanston Plaza Shopping Center.
During 1994 and 1993, all of the Partnership's properties, including the
property in which the Partnership holds a minority joint venture interest with
affiliates, generated positive cash flow. The Partnership defines cash flow
generated from its properties as an amount equal to the property's revenue
receipts less property related expenditures. As of December 31, 1994, the
Gleneagles Apartments and Evanston Plaza Shopping Center had occupancy rates of
99% and 94%, respectively. Many rental markets continue to remain extremely
competitive; therefore, the General Partner's goals are to maintain high
occupancy levels while increasing rents where possible and to monitor and
control operating expenses and capital improvement requirements at both of the
properties.
In September 1992, Phar Mor, a major tenant at the Evanston Plaza Shopping
Center, filed for reorganization under the U.S. Bankruptcy Code. The Bankruptcy
Court assigned Phar Mor's lease, with all the same terms, to Office Depot, a
national office supply and equipment retailer, effective December 1994.
Revenues related to this lease accounted for 11% of the Partnership's rental
income in 1994.
The Partnership and three affiliates (the "Participants") funded a $23,000,000
first mortgage loan on the 45 West 45th Street Office Building. The Partnership
funded $3,500,000 of the loan for a participating percentage of approximately
15%. In February 1995, the Participants received title to the property through
foreclosure. The Partnership's investment in this loan was reclassified from
loan in substantive foreclosure to an investment in joint venture with
affiliates effective January 1993. It is the General Partner's opinion that the
borrower had effectively surrendered control of the property. See Item 3.
Legal Proceedings for additional information.
The Partnership made four distributions totaling $11.28 per Taxable Interest
and $10.09 per Tax-exempt Interest during 1994 as compared to $10.08 per
Taxable Interest and $10.53 per Tax-exempt Interest during 1993 and $10.83 per
Taxable Interest and $10.00 per Tax-exempt Interest in 1992. See Statements of
Partners' Capital for additional information. Average quarterly distributions
to Limited Partners remained relatively unchanged during 1994 as compared to
1993 and during 1993 as compared to 1992. Including the January 1995
distribution, Limited Partners have received cumulative distributions of $73.80
per $250 Taxable Interest and $72.70 per $250 Tax-exempt Interest. It should be
noted that distributions to Taxable Limited Partners and Tax-exempt Limited
Partners are computed by different formulas as set forth in the Prospectus;
therefore, the amount of distributions to Taxable Limited Partners when
compared to the amount of distributions to Tax-exempt Limited Partners will
fluctuate from quarter to quarter.
During 1994, the General Partner, on behalf of the Partnership, used amounts
placed in the Repurchase Fund to repurchase 327 Interests from Limited Partners
at a total cost of $59,561.
In February 1995, the Partnership made a cash distribution of $476,897 ($3.24
per Taxable Interest and $2.50 per Tax-exempt Interest) to Limited Partners,
representing the quarterly distribution for the fourth quarter of 1994. In
addition, during February 1995, the Partnership paid $39,740 to the General
Partner as its share of the fourth quarter of 1994 distribution, and made a
$13,247 contribution to the Repurchase Fund.
The General Partner expects that the cash flow from property operations should
enable the Partnership to continue making quarterly distributions to Limited
Partners. However, the level of future distributions will be dependent on the
amount of cash flow generated from property operations as to which there can be
no assurances.
The General Partner has recently completed the outsourcing of the financial
reporting and accounting services, transfer agent and investor records
<PAGE>
services, and computer operations and systems development functions that
provided services to the Partnership. All of these functions are now being
provided by independent third parties. Additionally, Allegiance Realty Group,
Inc., which has provided property management services to all of the
Partnership's properties, was sold to a third party. Each of these transactions
occurred after extensive due diligence and competitive bidding processes. The
General Partner does not believe that the cost of providing these services to
the Partnership, in the aggregate, will be materially different to the
Partnership during 1995 when compared to 1994.
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.
Item 8. Financial Statements and Supplementary Data
---------------------------------------------------
See Index to Financial Statements and Financial Statement Schedule in this
Form 10-K.
The supplemental financial information specified by Item 302 of Regulation S-K
is not applicable.
The net effect of the differences between the financial statements and the tax
returns is summarized as follows:
December 31, 1994 December 31, 1993
----------------------- -------------------------
Financial Tax Financial Tax
Statements Returns Statements Returns
---------- --------- ---------- -------
Total assets $28,010,591 $42,181,782 $28,709,441 $42,874,087
Partners' capital
accounts (deficit):
General Partner (109,380) 251,855 (90,704) 257,977
Limited Partners 26,736,406 40,725,852 27,676,658 41,492,611
Net income:
General Partner 191,630 204,184 188,500 219,649
Limited Partners 952,500 1,125,994 150,589 1,135,987
Per Limited Part-
nership Interest 5.14 (A) .81 (A)
(A) The net income is $5.94 per Tax-exempt Interest and $7.34 per Taxable
Interest for 1994 and $6.16 per Tax-exempt Interest and $5.82 per Taxable
Interest for 1993.
Item 9. Changes in and Disagreements with Accountants on Accounting and
-----------------------------------------------------------------------
Financial Disclosure
--------------------
There have been no changes in or disagreements with accountants on any matter
of accounting principles, practices or financial statement disclosure.
<PAGE>
PART III
Item 10. Directors and Executive Officers of the Registrant
-----------------------------------------------------------
(a) Neither the Registrant nor Balcor Equity Partners-IV, its General Partner,
has a Board of Directors.
(b, c & e) The names, ages and business experience of the executive officers
and significant employees of the General Partner of the Registrant are as
follows:
TITLE OFFICERS
----- --------
Chairman, President and Chief Thomas E. Meador
Executive Officer
Executive Vice President, Allan Wood
Chief Financial Officer and
Chief Accounting Officer
Senior Vice President Alexander J. Darragh
First Vice President Daniel A. Duhig
First Vice President Josette V. Goldberg
First Vice President Alan G. Lieberman
First Vice President Brian D. Parker
and Assistant Secretary
First Vice President John K. Powell, Jr.
First Vice President Reid A. Reynolds
First Vice President Thomas G. Selby
Thomas E. Meador (July 1947) joined Balcor in July 1979. He is Chairman,
President and Chief Executive Officer and has responsibility for all ongoing
day-to-day activities at Balcor. He is a Director of The Balcor Company.
Prior to joining Balcor, Mr. Meador was employed at the Harris Trust and
Savings Bank in the commercial real estate division where he was involved in
various lending activities. Mr. Meador received his M.B.A. degree from the
Indiana University Graduate School of Business.
Allan Wood (January 1949) joined Balcor in August 1983 and, as Balcor's Chief
Financial Officer and Chief Accounting Officer, is responsible for the
financial and administrative functions. He is also a Director of The Balcor
Company. Mr. Wood is a Certified Public Accountant. Prior to joining Balcor,
he was employed by Price Waterhouse where he was involved in auditing public
and private companies.
Alexander J. Darragh (February 1955) joined Balcor in September 1988 and has
primary responsibility for the Portfolio Advisory Group. He is responsible for
due diligence analysis and real estate advisory services in support of asset
management, institutional advisory and capital markets functions. Mr. Darragh
has supervisory responsibility of Balcor's Investor Services, Investment
Administration, Fund Management and Land Management departments. Mr. Darragh
received masters' degrees in Urban Geography from Queens's University and in
Urban Planning from Northwestern University.
Daniel A. Duhig (October 1956) joined Balcor in November 1986 and is
responsible for the Asset Management Department relating to real estate
investments made by Balcor and its affiliated partnerships, including
negotiations for modifications or refinancings of real estate mortgage
investments and the disposition of real estate investments.
Josette V. Goldberg (April 1957) joined Balcor in January 1985 and has primary
responsibility for all human resources matters. In addition, she has
supervisory responsibility for Balcor's administrative and MIS departments.
Ms. Goldberg has been designated as a Senior Human Resources Professional
<PAGE>
(SHRP).
Alan G. Lieberman (June 1959) joined Balcor in May 1983 and is responsible for
the Property Sales and Capital Markets Groups. Mr. Lieberman is a Certified
Public Accountant.
Brian D. Parker (June 1951) joined Balcor in March 1986 and is responsible for
Balcor's corporate and property accounting, treasury and budget activities.
Mr. Parker is a Certified Public Accountant and holds an M.S. degree in
Accountancy from DePaul University.
John K. Powell, Jr. (June 1950) joined Balcor in September 1985 and is
responsible for the administration of the investment portfolios of Balcor's
partnerships and for Balcor's risk management functions. Mr. Powell received a
Master of Planning degree from the University of Virginia. He has been
designated a Certified Real Estate Financier by the National Society for Real
Estate Finance and is a full member of the Urban Land Institute.
Reid A. Reynolds (April 1950) joined Balcor in March 1981 and is involved with
the asset management of residential properties for Balcor. Mr. Reynolds is a
licensed Real Estate Broker in the State of Illinois.
Thomas G. Selby (July 1955) joined Balcor in February 1984 and has
responsibility for various Asset Management functions, including oversight of
the residential portfolio. From January 1986 through September 1994, Mr. Selby
was Regional Vice President and then Senior Vice President of Allegiance Realty
Group, Inc., an affiliate of Balcor providing property management services.
Mr. Selby was responsible for supervising the management of residential
properties in the western United States.
(d) There is no family relationship between any of the foregoing officers.
(f) None of the foregoing officers or employees are currently involved in any
material legal proceedings nor were any such proceedings terminated during the
fourth quarter of 1994.
Item 11. Executive Compensation
-------------------------------
The Registrant has not paid and does not propose to pay any remuneration to the
executive officers and directors of Balcor Equity Partners - IV, the general
partner. Certain of these officers receive compensation from The Balcor Company
(but not from the Registrant) for services performed for various affiliated
entities, which may include services performed for the Registrant. However, the
General Partner believes that any such compensation attributable to services
performed for the Registrant is immaterial to the Registrant. See Note 6 of
Notes to Financial Statements for the information relating to transactions with
affiliates.
Item 12. Security Ownership of Certain Beneficial Owners and Management
-----------------------------------------------------------------------
(a) The following entity is the sole Limited Partner which owns beneficially
more than 5% of the outstanding Limited Partnership Interests of the
Registrant:
Name and Amount and
Address of Nature of Percent
Beneficial Beneficial of
Title of Class Owner Ownership Class
-------------- ----------- ----------- ---------
Limited Engineers Joint 12,780 6.89%
Partnership Pension Fund Interests
Interests Syracuse, New York
(b) Balcor Equity Partners-IV and its officers and partners own as a group the
<PAGE>
following Limited Partnership Interests of the Registrant:
Amount
Beneficially
Title of Class Owned Percent of Class
-------------- ------------- ----------------
Limited 2,073 Interests 1.12%
Partnership
Interests
Relatives and affiliates of the officers and partners of the General Partner
own an additional twenty Interests.
(c) The Registrant is not aware of any arrangements, the operation of which may
result in a change of control of the Registrant.
Item 13. Certain Relationships and Related Transactions
-------------------------------------------------------
(a & b) See Note 6 of Notes to Financial Statements for additional information
relating to transactions with affiliates.
See Note 2 of Notes to Financial Statements for information relating to the
Partnership Agreement and the allocation of distributions and profits and
losses.
(c) No management person is indebted to the Registrant.
(d) The Registrant has no outstanding agreements with any promoters.
<PAGE>
PART IV
Item 14. Exhibits, Financial Statement Schedule and Reports on Form 8-K
------------------------------------------------------------------------
(a)
(1 & 2) See Index to Financial Statements and Financial Statement Schedule in
this Form 10-K.
(3) Exhibits:
(3) The Amended and Restated Agreement and Certificate of Limited Partnership
of Balcor Equity Pension Investors-IV A Real Estate Limited Partnership,
previously filed as Exhibit 3 to Amendment No. 1 dated November 28, 1986 to the
Registrant's Registration Statement on Form S-11 (Registration No. 33-7133), is
hereby incorporated herein by reference.
(4) Form of Subscription Agreement set forth as Exhibit 4.1 to Amendment No. 1
to Registrant's Registration Statement on Form S-11 dated November 28, 1986
(Registration No. 33-7133) 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. 0-15648) are incorporated
herein by reference.
(27) Financial Data Schedule of the Registrant for 1994 is attached hereto.
(b) Reports on Form 8-K: No reports were filed on Form 8-K during the quarter
ended December 31, 1994.
(c) Exhibits: See Item 14(a)(3) above.
(d) Financial Statement Schedule: See Index to Financial Statements and
Financial Statement Schedule attached hereto in this Form 10-K.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of l934, the Registrant has duly caused this Report to be signed on its
behalf by the undersigned, thereunto duly authorized.
BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
By: /s/Allan Wood
------------------------------
Allan Wood
Executive Vice President, and Chief
Accounting and Financial Officer
(Principal Accounting and Financial
Officer) of Balcor Equity Partners-IV,
the General Partner
Date: March 30, 1995
------------------
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
Signature Title Date
---------------------- ------------------------------------ ------------
President and Chief Executive
Officer (Principal Executive
Officer) of Balcor Equity
/s/Thomas E. Meador Partners-IV, the General Partner March 30, 1995
-------------------- --------------
Thomas E. Meador
Executive Vice President, and Chief
Accounting and Financial Officer
(Principal Accounting and Financial
Officer) of Balcor Equity
/s/Allan Wood Partners-IV, the General Partner March 30, 1995
-------------------- --------------
Allan Wood
<PAGE>
INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE
Report of Independent Auditors
Financial Statements:
Balance Sheets, December 31, 1994 and 1993
Statements of Partners' Capital, for the years ended December 31, 1994, 1993
and 1992
Statements of Income and Expenses, for the years ended December 31, 1994, 1993
and 1992
Statements of Cash Flows, for the years ended December 31, 1994, 1993 and 1992
Notes to Financial Statements
Financial Statement Schedule:
III - Real Estate and Accumulated Depreciation, as of December 31, 1994
Financial Statement Schedules, other than that listed, are omitted for the
reason that they are inapplicable or equivalent information has been included
elsewhere herein.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Partners of
Balcor Equity Pension Investors-IV
A Real Estate Limited Partnership:
We have audited the accompanying balance sheets of Balcor Equity Pension
Investors-IV A Real Estate Limited Partnership (An Illinois Limited
Partnership) as of December 31, 1994 and 1993, and the related statements of
partners' capital, income and expenses and cash flows for each of the three
years in the period ended December 31, 1994. Our audits also include the
financial statement schedule listed in the Index at Item 14(a). The financial
statements and schedule are the responsibility of the Partnership's management.
Our responsibility is to express an opinion on the financial statements and
schedule based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Balcor Equity Pension
Investors-IV A Real Estate Limited Partnership (An Illinois Limited
Partnership) at December 31, 1994 and 1993, and the results of its operations
and its cash flows for each of the three years in the period ended December 31,
1994, in conformity with generally accepted accounting principles. Also, in our
opinion, the related financial statement schedule, when considered in relation
to the basic financial statements taken as a whole, present fairly in all
material respects the information set forth therein.
ERNST & YOUNG LLP
Chicago, Illinois
March 20, 1995
<PAGE>
BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
BALANCE SHEETS
December 31, 1994 and 1993
ASSETS
1994 1993
-------------- --------------
Cash and cash equivalents $ 3,612,180 $ 2,733,081
Accounts and accrued interest receivable 70,246 911,277
Deferred expenses, net of accumulated
amortization of $4,191 in 1994 51,693
-------------- --------------
3,734,119 3,644,358
-------------- --------------
Investment in real estate:
Land 6,958,341 6,958,341
Buildings and improvements 24,248,600 24,248,600
-------------- --------------
31,206,941 31,206,941
Less accumulated depreciation 8,363,940 7,555,891
-------------- --------------
Investment in real estate, net of
accumulated depreciation 22,843,001 23,651,050
-------------- --------------
Investment in joint venture with
affiliates 1,433,471 1,414,033
-------------- --------------
$ 28,010,591 $ 28,709,441
============== ==============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 44,724 $ 39,144
Due to affiliates 54,646 32,433
Accrued liabilities, principally real
estate taxes 1,176,087 936,173
Security deposits 108,108 115,737
-------------- --------------
Total liabilities 1,383,565 1,123,487
Partners' capital (185,486 Limited
Partnership Interests issued and
outstanding) 26,627,026 27,585,954
-------------- --------------
$ 28,010,591 $ 28,709,441
============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
for the years ended December 31, 1994, 1993 and 1992
Partners' Capital (Deficit) Accounts
----------------------------------------------
General Limited
Total Partner Partners
-------------- -------------- --------------
Balance at December 31,
1991 $ 30,786,907 $ (59,235) $ 30,846,142
Cash distributions to:
Limited Partners (A) (1,869,644) (1,869,644)
General Partner (207,739) (207,739)
Net income for the year
ended December 31, 1992 698,621 203,898 494,723
-------------- -------------- --------------
Balance at December 31,
1992 29,408,145 (63,076) 29,471,221
Cash distributions to:
Limited Partners (A) (1,945,152) (1,945,152)
General Partner (216,128) (216,128)
Net income for the year
ended December 31, 1993 339,089 188,500 150,589
-------------- -------------- --------------
Balance at December 31,
1993 27,585,954 (90,704) 27,676,658
Cash distributions to:
Limited Partners (A) (1,892,752) (1,892,752)
General Partner (210,306) (210,306)
Net income for the year
ended December 31, 1994 1,144,130 191,630 952,500
-------------- -------------- --------------
Balance at December 31,
1994 $ 26,627,026 $ (109,380) $ 26,736,406
============== ============== ==============
(A) Summary of cash distributions paid per Interest:
1994 1993 1992
-------------- -------------- --------------
Taxable
-------
First Quarter $ 2.50 $ 2.57 $ 2.74
Second Quarter 2.94 2.45 2.75
Third Quarter 3.08 2.56 2.77
Fourth Quarter 2.76 2.50 2.57
Tax-exempt
----------
First Quarter 2.59 2.50 2.50
Second Quarter 2.50 2.50 2.50
Third Quarter 2.50 2.50 2.50
Fourth Quarter 2.50 3.03 2.50
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the years ended December 31, 1994, 1993 and 1992
1994 1993 1992
-------------- -------------- --------------
Income:
Rental $ 3,677,124 $ 3,433,321 $ 3,372,415
Service 1,278,641 1,034,957 1,073,793
Interest income from
investment in
acquistion loan 162,618
Interest on short-term
investments 132,638 88,276 119,910
-------------- -------------- --------------
Total income 5,088,403 4,556,554 4,728,736
-------------- -------------- --------------
Expenses:
Depreciation 808,049 808,049 1,041,549
Property operating 861,392 685,008 669,095
Maintenance and repairs 356,428 309,014 195,807
Real estate taxes 1,290,821 1,255,764 1,147,628
Property management fees 296,144 233,191 241,546
Administrative 350,877 292,533 255,998
Provision for acquistion
loan writedown 438,100
-------------- -------------- --------------
Total expenses 3,963,711 3,583,559 3,989,723
-------------- -------------- --------------
Income before equity in loss
from investment in
acquisition loan and
participation in income
(loss) of joint venture
with affiliates 1,124,692 972,995 739,013
Equity in loss from
investment in acquistion
loan (40,392)
Participation in income
(loss) of joint venture
with affiliates 19,438 (633,906)
-------------- -------------- --------------
Net income $ 1,144,130 $ 339,089 $ 698,621
============== ============== ==============
Net income allocated to
General Partner $ 191,630 $ 188,500 $ 203,898
============== ============== ==============
Net income allocated to
Limited Partners $ 952,500 $ 150,589 $ 494,723
============== ============== ==============
Net income per Limited
Partnership Interest
(185,486 issued and
outstanding) $ 5.14 $ .81 $ 2.67
============== ============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
for the years ended December 31, 1994, 1993 and 1992
1994 1993 1992
-------------- -------------- --------------
Operating activities:
Net income $ 1,144,130 $ 339,089 $ 698,621
Adjustments to reconcile
net income to net
cash provided by
operating activities:
Equity in loss from
investment in
acquisition loan 40,392
Participation in
(income) loss
of joint venture
with affiliate (19,438) 633,906
Depreciation of
properties 808,049 808,049 1,041,549
Amortization of
deferred expenses
and loan application
and processing fees 4,191 9,626
Provision for
acquisition loan
writedown 438,100
Net change in:
Accounts and
accrued interest
receivable 841,031 (82,785) (242,562)
Accounts payable 5,580 (18,489) (36,183)
Due to affiliates 22,213 4,378 (9,663)
Accrued liabilities 239,914 72,360 41,095
Security deposits (7,629) 18,496 (7,819)
-------------- -------------- --------------
Net cash provided by
operating activities 3,038,041 1,775,004 1,973,156
-------------- -------------- --------------
Investing activity:
Distribution from joint
venture - affiliate 275,720
--------------
Cash provided by investing
activity 275,720
--------------
Financing activities:
Distributions to Limited
Partners (1,892,752) (1,945,152) (1,869,644)
Distributions to General
Partner (210,306) (216,128) (207,739)
Payment of deferred
expenses (55,884)
-------------- -------------- --------------
Cash used in
financing activities (2,158,942) (2,161,280) (2,077,383)
-------------- -------------- --------------
<PAGE>
Net change in cash and
cash equivalents 879,099 (110,556) (104,227)
Cash and cash equivalents
at begining of year 2,733,081 2,843,637 2,947,864
-------------- -------------- --------------
Cash and cash equivalents
at end of year $ 3,612,180 $ 2,733,081 $ 2,843,637
============== ============== ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
1. Accounting Policies:
(a) Depreciation expense is computed using the straight-line method. Rates used
in the determination of depreciation are based upon the following estimated
useful lives:
Years
-----
Buildings and improvements 25 to 30
Furniture and fixtures 5
Maintenance and repairs are charged to expense when incurred. Expenditures for
improvements are charged to the related asset account.
The Partnership records its investments in real estate at cost, and
periodically assesses possible impairment to the value of its properties. In
the event that the General Partner determines that a permanent impairment in
value has occurred, the carrying basis of the property is reduced to its
estimated fair value.
(b) Deferred expenses consist of leasing commissions paid to unaffiliated
brokers which are being amortized on a straight-line basis over the respective
lease terms.
(c) Income from operating leases with abatements and scheduled rent increases
is recognized on a straight-line basis over the respective lease terms.
(d) Income which represents reimbursements for operating costs such as taxes,
maintenance and insurance is recognized as revenue in the period the applicable
costs are incurred.
(e) Investment in joint venture with affiliates represents the Partnership's
15.22% interest, under the equity method of accounting, in a joint venture with
affiliated partnerships. Under the equity method of accounting, the Partnership
records its initial investment at cost and adjusts its investment account for
additional capital contributions, distributions and its share of joint venture
income or loss.
(f) Cash equivalents include all highly liquid investments with a maturity of
three months or less when purchased.
(g) The Partnership is not liable for Federal income taxes and each partner
recognizes his proportionate share of the Partnership income or loss in his tax
return; therefore, no provision for income taxes is made in the financial
statements of the Partnership.
(h) Several reclassifications have been made in the previously reported 1993
financial statements to conform with the classification used in 1994, including
the reclassification of "loan in substantive foreclosure" to real estate to
conform with the provisions of Statement of Financial Accounting Standards No.
114 which was adopted as of January 1, 1994. These reclassifications have not
changed the 1993 results.
2. Partnership Agreement:
The Partnership was organized on June 20, 1986; however, operations did not
commence until 1987. The Partnership Agreement provides for Balcor Equity
Partners-IV to be the General Partner and for the admission of Limited Partners
through the sale of up to 1,000,000 Limited Partnership Interests at $250 per
<PAGE>
Interest, 185,486 of which were sold through December 14, 1987, the termination
date of the offering.
Pursuant to the terms set forth in the Partnership Agreement, "Operating Income
from Real Properties" of the Partnership will be allocated 10% to the General
Partner and 90% to the Limited Partners; and "Operating Losses from Real
Properties" and other certain components will be allocated 1% to the General
Partner and 99% to the Limited Partners; and "Other 'Operating Income' or
'Operating Losses'" will be allocated 10% to the General Partner and 90% to the
Limited Partners.
The Partnership Agreement provides for different allocations of profits and
losses and cash distributions to Limited Partners depending on whether the
investor originally acquiring the Limited Partnership interest was a taxable or
tax-exempt entity.
Ninety percent of Net Cash Receipts available for distribution will be
distributed to Limited Partners. To the extent possible, Taxable Limited
Partners will receive an allocation of such available Net Cash Receipts
generated by the operation of the Partnership's two properties in the same
manner as if their investment in the Partnership had been attributable solely
to the properties. Taxable Limited Partners will commence sharing in such
available Net Cash Receipts generated by the Partnership's investment in the 45
West 45th Street office building at such time as the Taxable Limited Partners'
investment in the Partnership is not then solely attributable to the two
properties (which time is anticipated to be upon the sale of both properties).
The Tax-exempt Limited Partners will be allocated all other Net Cash Receipts
to be allocated to the Limited Partners, consisting of (i) 100% of such
available Net Cash Receipts generated by the investment in the 45 West 45th
Street Office Building (until such time as both of the properties are sold, as
described above) plus (ii) the Net Cash Receipts generated by the operation of
the two properties, to the extent not allocated to the Taxable Limited Partners
as described above. Of the remaining 10% of Net Cash Receipts, 7 1/2% will be
paid to the General Partner as its distributive share from Partnership
operations and an additional 2 1/2% will be paid to the General Partner for
allocation to the Repurchase Fund, which may be utilized to repurchase
Interests from Limited Partners pursuant to the terms set forth in the
Partnership Agreement.
At the sole discretion of the General Partner and subject to certain
limitations, amounts placed in the Repurchase Fund have become available to be
used to repurchase Interests from existing Limited Partners. During 1994, the
General Partner used amounts placed in the Repurchase Fund to repurchase 327
Interests from Limited Partners at a cost of $59,561. An amount not to exceed
that originally allocated to the Repurchase Fund will be returned to the
Partnership at liquidation if necessary to permit payment to the Limited
Partners of their "Original Capital" plus any deficiency in their "Liquidation
Preference," as defined in the Partnership Agreement.
Subject to the provisions of the Partnership Agreement, "Net Cash Proceeds"
which are available for distribution will be distributed only to the Limited
Partners until such time as the Limited Partners have received a return of
their "Original Capital" and their "Liquidation Preference"; thereafter, the
remaining "Net Cash Proceeds" will be distributed 90% to the Limited Partners
and 10% to the General Partner. The General Partner's share shall be returned
to the Partnership if necessary to permit payment to the Limited Partners of
any deficiency in the return of their Original Capital and their Preferential
Cumulative Distribution on Adjusted Original Capital of 10% per annum.
3. Management Agreements:
As of December 31, 1994, both of the properties owned by the Partnership are
under management agreements with a third-party management company. These
management agreements provide for annual fees ranging from 3% to 6% of gross
operating receipts on the commercial property and of 5% on the residential
property.
<PAGE>
4. Investment in Joint Venture with Affiliates:
The Partnership and three affiliates (the "Participants"), previously funded a
$23,000,000 loan on the 45 West 45th Street Office Building. In February 1995,
the Participants received title to the property through foreclosure, and the
Partnership owns a 15.22% joint venture interest in the property. The
Partnership's investment was reclassified from loan in substantive foreclosure
to an investment in joint venture with affiliates effective January 1993. It is
the General Partner's opinion that the borrower had effectively surrendered
control of the property. During 1993, the Partnership received distributions of
$275,720 from the joint venture. In 1993, the joint venture recognized a loss
relating to the decline in the fair value of the property. The Partnership's
participation in joint venture with affiliates for 1993 includes the
Partnership's share of the loss of $900,000.
5. Tax Accounting:
The Partnership keeps its books in accordance with the Internal Revenue Code,
rules and regulations promulgated thereunder and existing interpretations
thereof. The accompanying financial statements, which are prepared in
accordance with generally accepted accounting principles, will differ from the
tax returns due to the different treatment of various items as specified in the
Internal Revenue Code. The net effect of these accounting differences is that
the net income for 1994 in the financial statements is $186,048 less than the
net taxable income for the same period. The Partnership's aggregate cost of
land and buildings and improvements for Federal income tax purposes is
$33,778,659 at December 31, 1994.
6. Transactions with Affiliates:
Commissions, fees and expenses paid and payable by the Partnership to
affiliates are:
Year Ended Year Ended Year Ended
12/31/94 12/31/93 12/31/92
-------------- -------------- --------------
Paid Payable Paid Payable Paid Payable
------ ------- ------ ------- ------ -------
Mortgage servicing fees $ 8,750 $ 729 $ 8,750 $ 729 $ 8,813 $ 729
Property management fees 281,422 None 234,845 16,670 245,702 18,324
Reimbursement of expenses
to the General Partner,
at cost:
Accounting 48,642 20,809 40,999 3,391 37,877 2,982
Data processing 26,543 5,752 29,295 6,725 36,335 2,824
Investor communica-
tions 18,961 6,461 19,128 1,582 13,936 1,098
Legal 8,311 3,497 3,978 329 3,720 293
Portfolio management 27,917 12,020 25,055 2,072 18,793 1,479
Other 11,434 5,378 11,302 935 4,143 326
Allegiance Realty Group, Inc., an affiliate of the General Partner, managed
both of the Partnership's properties until the affiliate was sold to a third
party in November 1994.
The Partnership participates in an insurance deductible program with other
affiliated partnerships in which the program pays claims up to the amount of
the deductible under the master insurance policies for its properties. The
program is administered by an affiliate of the General Partner who receives no
fee for administering the program. The Partnership's premiums to the deductible
insurance program were $26,864, $17,378 and $16,221 for 1994, 1993 and 1992,
respectively.
7. Rentals under Operating Leases:
<PAGE>
The Partnership receives rental income from the leasing of space at the
Evanston Plaza Shopping Center under operating leases. The minimum future
rentals (excluding amounts representing executory costs such as taxes,
maintenance and insurance) based on operating leases held at December 31, 1994
are approximately as follows:
1995 $ 1,542,000
1996 1,523,000
1997 1,436,000
1998 1,369,000
1999 1,376,000
Thereafter 8,765,000
-----------
$16,011,000
===========
These rentals include amounts relating to land leases which the Partnership
entered into with certain tenants of the shopping center.
Minimum future rentals do not include amounts which may be received from
certain tenants based upon a percentage of their gross sales in excess of
stipulated minimums. Percentage rentals were not significant during 1994, 1993
and 1992.
The Partnership is subject to the usual business risks regarding the collection
of the rentals.
8. Subsequent Event:
In February 1995, the Partnership made a distribution of $476,897 ($3.24 per
Taxable Interest and $2.50 per Tax-exempt Interest) to the holders of Limited
Partnership Interests, representing the quarterly distribution for the fourth
quarter of 1994.
<PAGE>
BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
<TABLE>
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
as of December 31, 1994
<CAPTION>
Col. A Col. B Col. C Col. D
--------------------- -------- -------------------- ---------------------------------
Initial Cost Cost Adjustments
to Partnership Subsequent to Acquisition
-------------------- ---------------------------------
Buildings Carrying Reduction
Encum- and Im- Improve- Costs of Basis
Description brances Land provements ments (a) (b)
--------------------- ------- -------- ------------ --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Evanston Plaza Shopping
Center, approx.
170,000 sq. ft. in
Evanston, IL None $5,075,000 $13,425,000 $1,091,667 $389,461 $(2,382,640)
Gleneagles Apartments,
292 units in Dade
County, FL None 2,270,000 11,130,000 208,453
---------- ----------- ---------- -------- -----------
Total $7,345,000 $24,555,000 $1,091,667 $597,914 $(2,382,640)
========== =========== ========== ======== ===========
</TABLE>
<PAGE>
BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
<TABLE>
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
as of December 31, 1994
<CAPTION>
Col. A Col. E Col. F Col. G Col. H Col. I
------------------- -------------------------------- -------- -------- ------ --------------
Gross Amounts at Which Life Upon
Carried at Close of Period Which Depre-
------------------------------- ciation in
Buildings Accumulated Date Date Latest Income
and Im- Total Deprecia- of Con- Acq- Statement
Description Land provements (c)(d) tion(d) struction uired is Computed
------------------- --------- ----------- ----------- ----------- --------- ----- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Evanston Plaza Shopping
Center, approx.
170,000 sq. ft. in
Evanston, IL $4,653,029 $12,945,459 $17,598,488 $4,045,402 1987 11/87 (e)
Gleneagles Apartments,
292 units in Dade
County, FL 2,305,312 11,303,141 13,608,453 4,318,538 1987 6/87 (e)
---------- ----------- ----------- ----------
Total $6,958,341 $24,248,600 $31,206,941 $8,363,940
========== =========== =========== ==========
</TABLE>
<PAGE>
BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
(An Illinois Limited Partnership)
NOTES TO SCHEDULE III
(a) Consists of acquisition fees, legal fees, appraisal fees, title costs and
other related professional fees.
(b) The carrying basis of the Evanston Plaza Shopping Center was reduced due to
a permanent impairment in the value of the property. In addition, any payments
to and receipts from the seller under a master lease agreement were treated as
adjustments to the basis of the property.
(c) The aggregate cost of land for Federal income tax purposes is $7,487,141
and the aggregate cost of buildings and improvements for Federal income tax
purposes is $26,291,518. The total of these assets is $33,778,659.
(d) Reconciliation of Real Estate
-----------------------------
1994 1993 1992
---------- ---------- ----------
Balance at beginning of year $31,206,941 $31,206,941 $31,206,941
----------- ----------- -----------
Balance at end of year $31,206,941 $31,206,941 $31,206,941
=========== =========== ===========
Reconciliation of Accumulated Depreciation
------------------------------------------
1994 1993 1992
---------- ---------- ----------
Balance at beginning of year $7,555,891 $6,747,842 $5,706,293
Depreciation expense for
the year 808,049 808,049 1,041,549
---------- ---------- ----------
Balance at end of year $8,363,940 $7,555,891 $6,747,842
========== ========== ==========
(e) Depreciation expense is computed based upon the following estimated useful
lives:
Years
-----
Buildings and improvements 25 to 30
Furniture and fixtures 5
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<CASH> 3612
<SECURITIES> 0
<RECEIVABLES> 70
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3682
<PP&E> 31207
<DEPRECIATION> 8364
<TOTAL-ASSETS> 28011
<CURRENT-LIABILITIES> 1384
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 26627
<TOTAL-LIABILITY-AND-EQUITY> 28011
<SALES> 0
<TOTAL-REVENUES> 5088
<CGS> 0
<TOTAL-COSTS> 2785
<OTHER-EXPENSES> 1159
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1144
<INCOME-TAX> 0
<INCOME-CONTINUING> 1144
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1144
<EPS-PRIMARY> 5.14
<EPS-DILUTED> 5.14
</TABLE>
