SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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) October 24, 1996
BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
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Exact Name of Registrant
Illinois 0-15648
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State or other jurisdiction Commission file number
2355 Waukegan Road
Suite A200
Bannockburn, Illinois 36-3447130
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Address of principal I.R.S. Employer
executive offices Identification
Number
60015
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Zip Code
Registrant's telephone number, including area code:
(847) 267-1600
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
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Gleneagles Apartments
In 1987, the Partnership acquired the Gleneagles Apartments, Dade County,
Florida, utilizing approximately $14,130,000, of offering proceeds.
On October 24, 1996, the Partnership contracted to sell the property for a sale
price of $13,675,000 to an unaffiliated party, Ceebraid-Signal Corporation, a
Florida corporation. The purchaser has deposited $200,000 into an escrow
account as earnest money. The remainder of the sale price will be payable in
cash at closing, which is scheduled to occur on December 16, 1996. From the
proceeds of the sale, the Partnership will pay $239,313 to an unaffiliated
party as a brokerage commission. An affiliate of the third party providing
property management services for the property will receive a fee for services
rendered in connection with the sale of the property of up to $102,563. The
Partnership will receive the remaining proceeds of approximately $13,333,124,
less closing costs. Neither the General Partner nor any affiliate will receive
a brokerage commission in connection with the sale of the property. The
General Partner will be reimbursed by the Partnership for actual expenses
incurred in connection with the sale.
Affiliates of the General Partner have sold or entered into contracts to sell
two other properties to the purchaser during 1996.
The closing is subject to the satisfaction of numerous terms and conditions.
There can be no assurance that all of the terms and conditions will be complied
with and, therefore, it is possible the sale of the property may not occur.
ITEM 5. OTHER EVENTS
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45 West 45th Street
As previously reported, a limited partnership in which the Partnership and
three affiliates hold interests and which owns the 45 West 45th Street office
building, New York City, New York, contracted to sell the property to an
unaffiliated party, Olmstead Properties, Inc., a New York corporation, for a
sale price of $10,300,000. Pursuant to an agreement dated August 12, 1996
between the limited partnership and the purchaser, the closing date was
extended from October 25, 1996 to November 12, 1996.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(A) FINANCIAL STATEMENTS AND EXHIBITS:
None
(B) PRO FORMA FINANCIAL INFORMATION:
None
(C) EXHIBITS:
(2) (a) Agreement of Sale and attachment thereto relating to the
sale of Gleneagles Apartments, Dade County, Florida.
(b) Addendum to Agreement of Sale relating to the sale of
Gleneagles Apartments, Dade County, Florida.
(99) First Amendment to Agreement of Sale relating to the sale of
the 45 West 45th Street office building, New York City, New
York.
No information is required under Items 1, 3, 4, 6 and 8 and these items
have, therefore, been omitted.
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Signature
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
BALCOR EQUITY PENSION INVESTORS-IV
A REAL ESTATE LIMITED PARTNERSHIP
By: Balcor Equity Partners-IV, an Illinois general
partnership, its general partner
By: The Balcor Company, a Delaware corporation,
a partner
By: /s/ Jerry M. Ogle
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Jerry M. Ogle, Vice President
and Secretary
Dated: November 4, 1996
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AGREEMENT OF SALE
THIS AGREEMENT OF SALE is entered into as of the 24th day of October, 1996,
by and between CEEBRAID-SIGNAL CORPORATION, a Florida corporation ("Purchaser")
and GLENEAGLES INVESTORS A REAL ESTATE LIMITED PARTNERSHIP, an Illinois limited
partnership ("Seller").
WITNESSETH:
1. PURCHASE AND SALE. Purchaser agrees to purchase and Seller agrees to
sell at the price of Thirteen Million Six Hundred Seventy-Five Thousand and
No/100 Dollars ($13,675,000.00) ("Purchase Price"), that certain real property
in Dade County, Florida, more particularly described on Exhibit A attached
hereto, which Property is known as Gleneagles Apartments, together with all
easements, permits, development rights, leases, and appurtenances thereto and
improvements thereon (the "Real Property"). Included in the Purchase Price is
all of the personal property set forth on Exhibit B (the "Personal Property"),
which shall be transferred to Purchaser at Closing (as hereinafter defined) by
a Bill of Sale. The Real Property and the Personal Property are hereinafter
collectively referred to as the "Property".
2. PURCHASE PRICE. The Purchase Price shall be paid as follows:
a. Upon the execution of this Agreement, the sum of Two Hundred
Thousand and No/100 Dollars ($200,000.00) ("Earnest Money") to be held in
escrow by the Escrow Agent (as that term is defined in the Escrow Agreement),
by and in accordance with the provisions of the Escrow Agreement ("Escrow
Agreement") attached hereto as Exhibit C;
b. On the Closing Date (as hereinafter defined), $13,675,000.00
(inclusive of all Earnest Money) adjusted in accordance with the prorations by
federally wired "immediately available" funds delivered to the Title Insurer
(as hereinafter defined) no later than 3:00 p.m. Central Time on the Closing
Date.
3. TITLE COMMITMENT AND SURVEY.
a. Attached hereto as Exhibit D is a title commitment dated July
23, 1996 ("Title Commitment") for an owner's marketability title insurance
policy ("Title Policy") issued by Partners Title Company, as Agent for Chicago
Title Insurance Company ("Title Insurer"). The Owner's Title Policy issued at
Closing will be in the amount of the Purchase Price subject only to real estate
taxes not yet due and payable, and the special title exceptions set forth in
Schedule B, Numbers 5 through 17 inclusive, of the Title Commitment. All of
the above are herein referred to as the "Permitted Exceptions". On the Closing
Date, Seller shall cause the Title Insurer to issue the Title Policy or a
"marked up" commitment in conformity with the Title Commitment. Seller shall
pay for the costs of the Title Policy, and Purchaser shall pay for "extended
coverage" and any special endorsements which Purchaser requires.
b. Purchaser acknowledges receipt of a survey ("Survey") of the
Property prepared by Biscayne Engineering Co. revised as of May 30, 1987, and
Purchaser approves all of the matters set forth on the Survey. If Purchaser
requires an updated Survey (the "Updated Survey"), Purchaser shall order and
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pay for same. Purchaser shall deliver a copy of the Updated Survey within
twenty five (25) days from the date hereof. If the Updated Survey discloses any
encroachment or other matter not disclosed on the Title Commitment which
materially impairs the marketability of the Property (an "Unpermitted Survey
Exception") and which cannot be insured over by the Title Insurer, Purchaser
may elect to proceed with Closing or terminate this Agreement. In no event
shall the existence of an Unpermitted Survey Exception be deemed an Event of
Default by Seller hereunder.
4. CONDITION OF TITLE/CONVEYANCE. Seller agrees to convey fee simple
title to the Property by Special Warranty Deed ("Deed") in recordable form
subject only to the Permitted Exceptions. If Seller is unable to convey title
to the Property subject only to the Permitted Exceptions because of the
existence of an additional title exception ("Unpermitted Exception"), then
Purchaser can elect to take title to the Property subject to the Unpermitted
Exception or terminate this Agreement. If Purchaser elects to terminate this
Agreement, then the Earnest Money plus all accrued interest shall be delivered
to the Purchaser.
5. PAYMENT OF CLOSING COSTS. Seller shall pay for (i) the costs of all
documentary stamps to be paid with reference to the Deed and all other stamps,
intangible, documentary, recording, sales tax and surtax imposed by law with
reference to any other documents delivered in connection with this Agreement,
and (ii) the recording charges pertaining to any instruments required to cure
title defects.
6. DAMAGE, CASUALTY AND CONDEMNATION.
a. If the Property suffers damage as a result of any casualty prior
to the Closing Date and can be repaired or restored in the case of real
property for $100,000 or less, or in the case of Personal Property, for $10,000
or less, then Seller shall commence the repair or restoration in an expeditious
manner, in which event the Closing Date will be extended until such date as may
reasonably be required to complete the repair or restoration. Seller shall
retain all insurance proceeds. If the cost of repair or restoration exceeds
that amount, then Purchaser may elect to terminate this Agreement by notice to
Seller within fifteen (15) days after receipt of notice of the casualty. If
Purchaser does not elect to terminate, then Purchaser shall be deemed to accept
the Property in its damaged condition together with an assignment from Seller
of all insurance proceeds and receive a credit at Closing in the amount of
Seller's insurance deductible.
b. If condemnation proceedings ("Proceedings") are instituted
against the Property, then Purchaser can elect to either take the Property
subject to the Proceedings and an assignment of Seller's interest in the
Proceedings or terminate this Agreement. If Purchaser elects to terminate this
Agreement, it shall be by notice to the Seller within five (5) days after
Seller notifies Purchaser of the Proceedings.
c. If the Agreement is terminated pursuant to this Paragraph, then
the Earnest Money plus all accrued interest shall be delivered to the
Purchaser.
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7. AS-IS CONDITION.
a. Seller acquired title to the Property by virtue of a deed in
lieu of foreclosure, and therefore, Seller cannot make any representations as
to the condition of the Property upon which Purchaser can rely. Any
information which Seller has as to the leases is based solely upon information
which Seller obtained subsequent to its acquisition of the Property. Purchaser
is not relying on Seller having made any inquiry as to the condition of the
Property or the leases. Purchaser acknowledges and agrees that it will be
purchasing the Property based solely upon its inspection and investigations of
the Property and that Purchaser will be purchasing the Property "AS IS" and
"WITH ALL FAULTS" based upon the condition of the Property as -of the date of
this Agreement, subject to reasonable wear and tear from the date of this
Agreement until the Closing Date. Without limiting the foregoing, Purchaser
acknowledges that, except as may otherwise be specifically set forth elsewhere
in this Agreement, neither Seller nor its consultants, brokers or agents have
made any other representations or warranties of any kind - upon which Purchaser
is relying as to any matters concerning the Property, including, but not
limited to, the condition of the land or any improvements, the existence or
nonexistence of asbestos, lead in water, lead in paint, radon, underground or
above ground storage tanks, petroleum, toxic waste or any Hazardous Materials
or Hazardous Substances (as such terms are defied below), the tenants of the
Property or the leases affecting the Property, economic projections or market
studies concerning the Property, any development rights, taxes, bonds,
covenants, conditions and restrictions affecting the Property, water or water
rights, topography, drainage, soil, subsoil of the Property, the utilities
serving the Property or any zoning, environmental or building laws, rules or
regulations affecting the Property. Seller makes no representation that the
Property complies with Title HI of the Americans With Disabilities Act or any
fire codes or building codes. Purchaser hereby releases Seller from any and
all liability in connection with any claims which Purchaser may have against
Seller, and Purchaser hereby agrees not to assert any claims, for damage, loss,
compensation, contribution, cost recovery or otherwise, against Seller, whether
in tort, contract, or otherwise, relating directly or indirectly to the
existence of asbestos or Hazardous Materials or Hazardous Substances on, or
environmental conditions of, the Property, or arising under the Environmental
Laws (as such term is hereinafter defied), or relating in any way to the
quality of the indoor or outdoor environment at the Property. This release
shall survive the Closing. As used herein, the term "Hazardous Materials" or
"Hazardous Substances" means (i) hazardous wastes, hazardous materials,
hazardous substances, hazardous constituents, toxic substances or related
materials, whether solids, liquids or gases, including but not limited to
substances defined as "hazardous wastes," "hazardous materials," "hazardous
substances," "toxic substances," "pollutants," "contaminants," "radioactive
materials," or other similar designations in, or otherwise subject to
regulation under, the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended ("CERCLA"), 42 U.S.C. Section 9601 et seq.;
the Toxic Substance Control Act ("TSCA"), 15 U.S.C. Section 2601 et seq.; the
Hazardous Materials Transportation Act, 49 U.S.C. Section 1802; the Emergency
Planning and Community Right-to-Know Act, 42 U.S.C. Section 1101 et seq.; the
Atomic Energy Act ("AEA"), 42 U.S.C. Section 2011 et seq.; the Resource
Conservation and Recovery Act ("RCRA"), 42 U.S.C. Section 9601, et seq.; the
Clean Water Act ("CWA"), 33 U.S.C. Section 1251 et seq.; the Safe Drinking
Water Act, 42 U.S.C. Section 300f et seq.; the Clean Air Act ("CAA"), 42 U.S.C.
<PAGE>
Section 7401 et seq.; and in any permits, licenses, approvals, plans, rules,
regulations or ordinances adopted, or other criteria and guidelines promulgated
pursuant to the preceding laws or other similar federal, state or local laws,
regulations, rules or ordinance now or hereafter in effect relating to
environmental matters (collectively the "Environmental Laws"); and (ii) any
other substances, constituents or wastes subject to any applicable federal,
state or local law, regulation or ordinance, including any Environmental Law,
now or hereafter in effect, including but not limited to (A) petroleum, (B)
refined petroleum products, (C) waste oil, (D) waste aviation or motor vehicle
fuel, (E) asbestos, (F) lead in water, paint or elsewhere, (G) radon, (H)
Polychlorinated Biphenyls (PCB's) and (I) ureaformaldehyde.
b. Seller has provided to Purchaser certain unaudited historical
financial information regarding the Property relating to certain periods of
time in which Seller owned the Property. Seller and Purchaser hereby
acknowledge that such information has been provided to Purchaser at Purchaser's
request solely as illustrative material. Seller makes no representation or
warranty that such material is complete or accurate or that Purchaser will
achieve similar financial or other results with respect to the operations of
the Property, it being acknowledged by Purchaser that Seller's operation of the
Property and allocations of revenues or expenses may be vastly different than
Purchaser may be able to attain. Purchaser acknowledges that it is a
sophisticated and experienced purchaser of real estate and further that
Purchaser has relied upon its own investigation and inquiry with respect to the
operation of the Property and releases Seller from any liability with respect
to such historical information.
8. CLOSING. The closing ("Closing") of this transaction shall be on
October 30, 1996 ("Closing Date"), at the office of the Title Insurer, at which
time Seller shall deliver possession of the Property to Purchaser.
9. CLOSING DOCUMENTS.
a. On the Closing Date, Purchaser shall deliver to Seller an
executed closing statement, the balance of the Purchase Price, and such other
documents as may be reasonably required in order to consummate the transaction
as set forth in this Agreement.
b. On the Closing Date, Seller shall deliver to Purchaser
possession of the Property; the Deed (in the form of Exhibit E attached hereto)
subject to the Permitted Exceptions and those Unpermitted Exceptions waived by
Purchaser; an inventory of the Personal Property and a Bill of Sale for the
same (in the form of Exhibit F attached hereto); an executed closing statement;
an executed assignment and assumption of all service contracts ("Service
Contracts") (in the form of Exhibit G attached hereto); an executed assignment
and assumption of all leases ("Leases") and security deposits (in the form of
Exhibit H attached hereto); an updated Rent Roll (as that term is hereinafter
defined); a notice to the tenants of the transfer of title and the assumption
by Purchaser of the landlord's obligations under the leases and the obligation
to refund the security deposits (in the form of Exhibit I attached hereto); a
non-foreign affidavit (in the form of Exhibit J attached hereto); and such
other documents as may be reasonably required by the Title Insurer in order to
consummate the transaction as set forth in this Agreement.
<PAGE>
10. DEFAULT BY PURCHASER. ALL EARNEST MONEY DEPOSITED INTO THE ESCROW IS
TO SECURE THE TIMELY PERFORMANCE BY PURCHASER OF ITS OBLIGATIONS AND
UNDERTAKINGS UNDER THIS AGREEMENT. IN THE EVENT OF ANY DEFAULT OF THE
PURCHASER UNDER THE PROVISIONS OF THIS AGREEMENT, SELLER SHALL RETAIN ALL OF
THE EARNEST MONEY AND THE INTEREST THEREON AS SELLER'S SOLE RIGHT TO DAMAGES OR
ANY OTHER REMEDY. THE PARTIES HAVE AGREED THAT SELLER'S ACTUAL DAMAGES, IN THE
EVENT OF A DEFAULT BY PURCHASER, WOULD BE EXTREMELY DIFFICULT OR IMPRACTICAL TO
DETERMINE. THEREFORE, BY PLACING THEIR INITIALS BELOW, THE PARTIES ACKNOWLEDGE
THAT THE EARNEST MONEY HAS BEEN AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES'
REASONABLE ESTIMATE OF SELLER'S DAMAGES.
11. SELLER'S DEFAULT. IF THIS SALE IS NOT COMPLETED BECAUSE OF SELLER'S
DEFAULT, PURCHASER'S SOLE REMEDY SHALL BE THE RIGHT TO RECOVER ACTUAL THIRD
PARTY COSTS INCURRED IN CONDUCTING ITS INVESTIGATION OF THE PROPERTY AS SET
FORTH IN PARAGRAPH 16 HEREOF INCLUDING REASONABLE ATTORNEY'S FEES AND COSTS IN
AN AMOUNT NOT TO EXCEED $200,000.00 AND THE RETURN OF ALL EARNEST MONEY
TOGETHER WITH ANY INTEREST ACCRUED THEREON, AND THIS AGREEMENT SHALL TERMINATE
AND THE PARTIES SHALL HAVE NO FURTHER LIABILITY TO EACH OTHER AT LAW OR IN
EQUITY. NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY, IF SELLER'S
DEFAULT IS ITS REFUSAL TO DELIVER THE DEED OR THE DOCUMENTS REQUIRED TO BE
DELIVERED AT CLOSING, THEN PURCHASER WILL BE ENTITLED TO SUE FOR SPECIFIC
PERFORMANCE.
12. a. PRORATIONS. Rents (exclusive of delinquent rents, but including
prepaid rents); refundable security deposits (which will be assigned to and
assumed by Purchaser and credited to Purchaser at Closing); water and other
utility charges; fuels; prepaid operating expenses; management fees in the
amount of 5% of collections; real and personal property taxes; and other
similar items shall be adjusted ratably as of 12:01 A.M. on the Closing Date
("Proration Date"), and credited or debited to the balance of the cash due at
Closing. If for any reason the Proration Date is earlier than the Closing
Date, then for the period from the Proration Date through the Closing Date,
Purchaser shall be entitled to the benefit of all of the income from the
Property and shall bear the burden of all of the operating expenses of the
Property, including, but not limited to, insurance, service contracts, employee
wages and benefits, management fees, utility costs and interest on the existing
mortgages encumbering the Property (if any). If the amount of any of the items
to be prorated is not then ascertainable, the adjustment thereof shall be on
the basis of the most recent ascertainable data. All prorations will be final
except as to Delinquent Rents referred to in Paragraph 12(b) below. If special
assessments have been levied against the Property for completed improvements,
then the amount of any installments which are due prior to the Closing Date
shall be paid by the Seller, and the amount of installments which are due after
the Closing Date shall be paid by the Purchaser. All assessments for
incomplete improvements shall be paid by Purchaser.
b. DELINQUENT RENTS. If, as of the Closing Date, any rent is in
arrears ("Delinquent Rent") for the calendar month in which the Closing occurs,
then Seller's pro rata share of the first rent collected by Purchaser during
the calendar month in which the Closing occurs will be delivered to Seller for
the Delinquent Rent. If Delinquent Rent is in arrears for a period prior to
the calendar month in which the Closing occurs, then rents collected by
Purchaser shall first be applied to current rent and then to Delinquent Rent.
Purchaser shall deliver Seller's pro rata share within 10 days of Purchaser's
receipt of that Delinquent Rent. This subparagraph of this Agreement shall
survive the Closing and the delivery and recording of the Deed. Purchaser
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shall have no obligation to actively pursue collection of Delinquent Rent which
is in arrears for more than thirty (30) days.
13. RECORDING. This Agreement shall not be recorded and the act of
recording by Purchaser shall be an act of default hereunder by Purchaser and
shall be subject to the provisions of Paragraph 10.
14. ASSIGNMENT. The Purchaser shall not have the right to assign its
interest in this Agreement without the prior written consent of the Seller.
Any assignment or transfer of, or attempt to assign or transfer, Purchaser's
interest in this Agreement shall be an act of default hereunder by Purchaser
and subject to the provisions of Paragraph 10. Seller hereby consents to an
assignment to an entity, in which Purchaser has an interest, provided such
assignment is effected within five (5) days prior to the Closing Date.
However, Purchaser shall remain liable for all of the Purchaser's obligations
and undertakings set forth in this Agreement and the exhibits attached hereto.
15. BROKER. The parties hereto acknowledge that CB Commercial Real
Estate Group, Inc. ("Broker") is the only real estate broker involved in this
transaction. Seller agrees to pay Broker a commission or fee ("Fee") pursuant
to a listing agreement between Seller and Broker. However, this Fee is due and
payable only from the proceeds of the Purchase Price received by Seller.
Purchaser agrees to indemnify, defend and hold harmless the Seller and any
partner, affiliate, parent of Seller, and all shareholders, employees, officers
and directors of Seller or Seller's partner, parent or affiliate (each of the
above is individually referred to as a "Seller Indemnitee") from all claims,
including attorneys' fees and costs incurred by a Seller Indemnitee as a result
of anyone's claiming by or through Purchaser any fee, commission or
compensation on account of this Agreement, its negotiation or the sale hereby
contemplated. Purchaser does now and shall at all times consent to a Seller
Indemnitee's selection of defense counsel. Seller agrees to indemnify, defend
and hold harmless the Purchaser and all shareholders, employees, officers and
directors of Purchaser or Purchaser's parent or affiliate (each of the above is
individually referred to as a "Purchaser Indemnitee") from all claims,
including attorneys' fees and costs incurred by a Purchaser Indemnitee as a
result of anyone's claiming by or through Seller any fee, commission or
compensation on account of this Agreement, its negotiation or the sale hereby
contemplated. Seller does now and shall at all times consent to a Purchaser
Indemnitee's selection of defense counsel.
16. DOCUMENTS, INSPECTION OF PROPERTY.
a. Seller has delivered to Purchaser copies of the most recent
available tax bills, rent rolls, insurance premiums, and service contracts
(collectively the "Documents"). All of the Documents have been approved by
Purchaser as of the date hereof. Purchaser acknowledges that Purchaser has had
the opportunity to inspect and approve the condition of the Property including
the interior of the apartments. Purchaser, its engineers, architects,
employees, contractors and agents shall maintain public liability insurance
policies insuring against claims arising as a result of the inspections of the
Property being conducted by Purchaser. Prior to commencing any tests, studies
and investigations, Purchaser delivered to Seller a certificate of insurance
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evidencing the existence of the aforesaid policies and naming Seller as an
additional insured. Purchaser agrees to indemnify, defend, protect and hold
Seller harmless from any and all loss, costs, including attorneys' fees,
liability or damages which Seller may incur or suffer as a result of
Purchaser's conducting its inspection and investigation- of the Property
including the entry of Purchaser, its employees or agents and its lender onto
the Property, including without limitation, liability for mechanics' lien
claims.
b. Purchaser agrees to defend and hold Seller harmless from any
injuries, damages or claims of any nature whatsoever which Purchaser's
servants, agents or employees may have as a result of Purchaser's inspection of
the Property. Purchaser further agrees to restore any damage to the Property
which may arise as a result of Purchaser's inspection of the Property.
c. Purchaser hereby approves the Documents and the condition of the
Property and hereby waives any right to terminate this Agreement due to any
disapproval of the Documents or the condition of the Property.
17. SURVIVAL OF INDEMNITIES. Notwithstanding anything in this Agreement
to the contrary, each parties' obligation to indemnify, defend and hold the
other party harmless under various provisions of this Agreement shall forever
survive the termination of this Agreement or the Closing and delivery and
recording of the Deed.
18. SELLER'S REPRESENTATIONS, WARRANTIES AND COVENANTS.
a. Any reference herein to Seller's knowledge, representation,
warranty or notice of any matter or thing, shall only mean such knowledge or
notice that has actually been received by Phillip A. Schechter and Michael
Becker, the asset manager of the Property, and any representation or warranty
of the Seller is based upon those matters of which Phillip A. Schechter or
Michael Becker has actual knowledge. Any knowledge or notice given, had or
received by any of Seller's agents, servants or employees shall not be imputed
to Seller or the individual partners or the general partner of Seller.
b. Subject to the limitations set forth in subparagraph 18(a)
above, Seller hereby makes the following representations, warranties and
covenants, all of which are made to the best of Seller's knowledge, none of
which shall survive the Closing and delivery of the Deed:
i. The present use and occupancy of the Property conform with
applicable building and zoning laws and Seller has received no written notice
that any such laws, rules or regulations are being violated.
ii. The rent roll ("Rent Roll") attached hereto as Exhibit K,
which will be updated as of the Closing Date, is true and accurate.
iii. Seller has no knowledge of any pending or threatened
litigation, claim, cause of action or administrative proceeding concerning the
Property.
iv. The Seller is an Illinois limited partnership in good
standing and its general partner is an Illinois general partnership in good
standing.
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v . The execution of this Agreement and completion of the
transaction contemplated herein shall not constitute a default under any other
agreements by which Seller is bound.
vi. Seller has not made any prior assignment of the Service
Contracts. No other third party has a beneficial interest in the Service
Contracts.
vii. The Service Contracts listed on the Assignment of Service
Contracts are the only service contracts affecting the Property.
viii. The Service Contracts are in full force and effect and
Seller does not know of the existence of any default under any of the Service
Contracts.
ix. Seller has not made any prior assignment of the Leases. No
other third party has a beneficial interest in the Leases.
x. The Leases listed on the Rent Roll attached hereto are the
only Leases affecting the Property.
xi. Except as may be set forth on the delinquency report
attached to the Rent Roll to be delivered on the Closing Date, all of the
Leases will be in full force and effect and not in default.
c. Covenants.
i . The management, operation, leasing and maintenance of the
Property, as presently conducted by the Seller, shall continue until the
Closing Date.
ii. Seller shall notify Purchaser of any material change in the
Personal Property after the date of this Agreement.
iii. Seller shall assign to Purchaser all of Seller's right,
title and interest in and to any warranties, guarantees and proceeds from Vista
Plastics relating to Claim No. 674054 relating to the installation of plastic
piping materials at the Property.
19. SELLER'S RIGHT TO CURE. If, on or prior to the Closing Date,
Purchaser discovers that (i) any representation or warranty of Seller is untrue
or misleading in any material respect; or (ii) Seller is in default under this
Agreement; or (iii) Seller has failed to perform a required covenant
(individually or collectively, a "Breach"), then Purchaser shall give Seller
notice of such Breach. Upon receipt of notice from Purchaser, Seller shall
have ten (10) days in order to cure such Breach and, if necessary, the Closing
Date shall be extended accordingly. If, after making all reasonable efforts,
Seller is unable to cure the Breach, then Purchaser shall elect by notice to
Seller to either waive the Breach or terminate this Agreement. In the event of
termination, all Earnest Money plus the interest accrued thereon shall be
returned to Purchaser. If Purchaser fails to give Seller notice of a Breach,
then Purchaser shall have waived its rights to assert any claims for such
Breach.
<PAGE>
20. ENVIRONMENTAL REPORT. Attached to this Agreement as Exhibit L is the
following report ("Environmental Report") of the Property, which Seller is
delivering to Purchaser, at Purchaser's request: Phase I Environmental Site
Assessment of Gleneagles Apartments prepared by EMG dated May 2, 1996. Seller
makes no representation or warranty that the Environmental Report is accurate
or complete. Purchaser hereby releases Seller from any liability whatsoever
with respect to the Environmental Report, including, without limitation, the
matters set forth in the Environmental Report or the accuracy and/or
completeness of the Environmental Report.
21. LIMITATION OF SELLER'S LIABILITY. No general or limited partner of
Seller, nor any of its respective beneficiaries, shareholders, partners,
officers, agents, employees, heirs, successors or assigns shall have any
personal liability of any kind or nature for or by reason of any matter or
thing whatsoever under, in connection with, arising out of or in any way
related to this Agreement and the transactions contemplated herein, and
Purchaser hereby waives for itself and anyone who may claim by, through or
under Purchaser any and all rights to sue or recover on account of any such
alleged personal liability.
22. PURCHASER'S ORGANIZATIONAL DOCUMENTS. At least ten (10) days prior
to the Closing Date, Purchaser will provide Seller's attorney with copies of
its organizational documents, including a certified copy of its recorded
certificate of limited partnership and a true copy of its Partnership Agreement
or a certified copy of its Articles of Incorporation, corporate resolutions
authorizing the transaction, and an incumbency certificate, whichever is
applicable.
23. TIME OF ESSENCE. Time is of the essence of this Agreement.
24. NOTICES . Any notice or demand which either party hereto is required
or may desire to give or deliver to or make upon the other party shall be in
writing and may be personally delivered or given or made by overnight courier
such as Federal Express or by facsimile or made by United States registered or
certified mail addressed as follows:
TO SELLER: c/o The Balcor Company
2355 Waukegan Road
Suite A200
Bannockburn, Illinois 60015
Attn: Ilona Adams
with copies to: The Balcor Company
2355 Waukegan Road
Suite A200
Bannockburn, Illinois 60015
Attn: Al Liebermann
847/267-1600
847/317-4462 (FAX)
and
<PAGE>
Daniel J. Perlman, Esq.
Katten Muchin & Zavis
525 West Monroe Street
Suite 1600
Chicago, Illinois 60661-3693
312/902-5200
312/902-1061 (FAX)
TO PURCHASER: Richard Schlesinger
Ceebraid-Signal Corporation
250 Australian Avenue South
Suite 1003
West Palm Beach, Florida 33401
561/835-4003
561/835-8356 (FAX)
with a copy to: Howard Bregman, Esq.
Greenberg, Traurig
777 S. Flagler Drive
Suite 310 East
West Palm Beach, Florida 33401
561/650-7900
561/655-6222 (FAX)
subject to the right of either party to designate a different address for
itself by notice similarly given. Any notice or demand so given shall be
deemed to be delivered or made on the next business day if sent by overnight
courier, or on the same day if sent by facsimile before the close of business,
or the next day if sent by facsimile after the close of business, or on the 4th
business day after the same is deposited in the United States Mail as
registered or certified matter, addressed as above provided, with postage
thereon fully prepaid. Any such notice, demand or document not given,
delivered or made by registered or certified mail or by overnight courier or by
facsimile as aforesaid shall be deemed to be given, delivered or made upon
receipt of the same by the party to whom the same is to be given, delivered or
made. Copies of all notices shall be served upon the Escrow Agent.
25. EXECUTION OF AGREEMENT AND ESCROW AGREEMENT. Purchaser will execute
three (3) copies of this Agreement and three (3) copies of the Escrow Agreement
and forward them to Seller for execution, accompanied with the Earnest Money
payable to the Escrow Agent. Seller will forward one (1) copy of the executed
Agreement to Purchaser and will forward the following to the Escrow Agent:
a. Earnest Money;
b. One (1) fully executed copy of this Agreement; and
c. Three (3) copies of the Escrow Agreement signed by the parties
with a direction to execute two (2) copies of the Escrow Agreement and deliver
a fully executed copy to the Purchaser and the Seller.
26. GOVERNING LAW. The provisions of this Agreement shall be governed by
the laws of the State of Florida.
<PAGE>
27. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties and supersedes all other negotiations, understandings and
representations made by and between the parties and the agents, servants and
employees.
28. COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument.
29. CAPTIONS. Paragraph titles or captions contained herein are inserted
as a matter of convenience and for reference, and in no way define, limit,
extend or describe the scope of this Agreement or any provision hereof.
30. RADON GAS. Radon is a naturally occurring radioactive gas that, when
it has accumulated in a building in sufficient quantities, may present health
risks to persons who are exposed to it over time. Levels of radon that exceed
federal and state guidelines have been found in buildings in Florida.
Additional information regarding radon and radon testing may be obtained from
your county public health unit.
IN WITNESS WHEREOF, the parties hereto have put their hand and seal as of
the date set forth above.
Executed by Purchaser on PURCHASER:
October , 1996.
CEEBRAID-SIGNAL CORPORATION, a Florida
corporation
By: /s/ Richard Schlesinger
-----------------------------------
Name: Richard Schlesinger
-----------------------------------
Its: Managing Director
-----------------------------------
Executed by Seller on SELLER:
October 24, 1996.
GLENEAGLES INVESTORS A REAL ESTATE LIMITED
PARTNERSHIP, an Illinois limited partnership
By: Balcor Equity Partners-IV, an Illinois
general partnership, its general partner
By: The Balcor Company, a Delaware
corporation, a general partner
By: /s/ James E. Mendelson
---------------------------------
Name: James E. Mendelson
---------------------------------
Its: Authorized Representative
---------------------------------
<PAGE>
CB Commercial Real Estate Group, Inc. ("Broker")
executes this Agreement in its capacity as a real estate broker and
acknowledges that the fee or commission ("Fee") due to it as a result of the
transaction described in this Agreement is the amount as set forth in the
listing agreement between Broker and Seller. Broker also acknowledges that
payment of the aforesaid Fee is conditioned upon the Closing and the receipt of
the Purchase Price by the Seller. Broker agrees to deliver a receipt to the
Seller at the Closing for the Fee and a release stating that no other fees or
commissions are due to Broker from Seller or Purchaser.
CB COMMERCIAL REAL ESTATE GROUP, INC.
By:
----------------------------------
Name:
----------------------------------
Its:
----------------------------------
<PAGE>
EXHIBITS
A - Legal Description
B - Personal Property
C - Escrow Agreement
D - Title Commitment
E - Deed
F - Bill of Sale
G - Assignment of Service Contracts
H - Assignment of Leases and Security Deposits
I - Notice to Tenants
J - Non-Foreign Affidavit
K - Rent Roll
L - Environmental Report
<PAGE>
ADDENDUM TO AGREEMENT OF SALE
THIS ADDENDUM TO AGREEMENT OF SALE is entered into as of the day of
October, 1996, by and between CEEBRAID-SIGNAL CORPORATION, a Florida
corporation ("Purchaser") and GLENEAGLES INVESTORS A REAL ESTATE LIMITED
PARTNERSHIP, an Illinois limited partnership ("Seller").
The Agreement of Sale of even date between Purchaser and Seller (the
"Agreement") is hereby modified as follows:
1. Concerning Paragraph 3 of the Agreement, Seller and Purchaser
acknowledge that the survey does not locate all of the Permitted Exceptions.
Therefore, if the location of one or more of the Permitted Exceptions on the
Updated Survey materially impairs the marketability of the Property and cannot
be insured over by the Title Insurer, such shall be deemed Unpermitted Survey
Exceptions.
2. Concerning Paragraph 3a of the Agreement, the special title exception
set forth in Schedule B, Number 15 is hereby deleted as a Permitted Exception.
3. Concerning Paragraph 8 of the Agreement, the Closing Date is hereby
changed from "October 30, 1996," to "December 16, 1996."
Except as set forth herein, the Agreement is not modified.
SELLER:
GLENEAGLES INVESTORS A REAL ESTATE
LIMITED PARTNERSHIP, an Illinois limited
partnership
By: Balcor Equity Partners-IV, an Illinois
general partnership, its general partner
By: The Balcor Company, a Delaware
corporation, a general partner
By: /s/ James E. Mendelson
----------------------------------
Name: James E. Mendelson
----------------------------------
Its: Authorized Representative
----------------------------------
PURCHASER:
CEEBRAID-SIGNAL CORPORATION, a Florida
corporation
By: /s/ Richard Schlesinger
------------------------------------
Name: Richard Schlesinger
------------------------------------
Its: Managing Director
------------------------------------
<PAGE>
FIRST AMENDMENT TO AGREEMENT OF SALE
THIS FIRST AMENDMENT TO AGREEMENT OF SALE (this "Amendment") is entered
into as of the 12th day of August, 1996, by and between Olmstead Properties,
Inc., a New York corporation ("Purchaser"), 45 West 45th Street Limited
Partnership, an Illinois limited partnership ("Seller") and The Balcor Company,
a Delaware corporation.
R E C I T A L S:
A. Purchaser, Seller and Balcor have entered into that certain Agreement
of Sale dated as of July 29, 1996 ("Purchase Agreement") with respect to the
purchase and sale of 45 West 45th Street, New York, New York.
B. Purchaser, Seller and Balcor desire to amend the Purchase Agreement
on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the mutual covenants herein contained
and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, Purchaser and Seller hereby agree as follows:
1. Capitalized terms used but not defined herein shall have the meanings
set forth in the Purchase Agreement.
2. In the event of any inconsistency between the terms and the
provisions of the Purchase Agreement and the terms and provisions of this
Amendment, the terms and provisions of this Amendment shall govern and control.
3. Paragraph 3A(e) of the Purchase Agreement is amended by inserting the
phrase "based on the Existing Survey" immediately after the phrase "survey
reading" and before the close parenthesis and by deleting exception number 4.
4. Notwithstanding the provisions of Section 4A of the Purchase
Agreement, Seller, rather than Purchaser, shall pay for the cost of the
documentary or transfer stamps and other costs and transfer taxes described in
said Paragraph 4A, other than charges of the Title Insurer which are to be paid
by Purchaser.
5. The Title Commitment and other due diligence materials and
investigations disclose various alleged violations with respect to the
Property.
(a) With respect to the alleged May 8, 1990 elevator violation and
June 16, 1988 ECB Violation with respect to bathroom renovations, Seller shall
either cause such violations to be remedied and discharged of record or at
Closing Purchaser shall receive a credit in the amount of $2,000 with respect
to the May 8, 1990 elevator violation and a credit in the amount of $10,000
with respect to the June 16, 1988 ECB Violation, in each case, in the event not
remedied and discharged of record.
<PAGE>
(b) Purchaser and Seller acknowledge that a current environmental
report for the property will not be available for another week to ten days.
Purchaser agrees to deliver to Seller a copy of the report in the event the
report reveals remediation for which Purchaser requests Seller to contribute to
the cost thereof. In the event the environmental report discloses
environmental conditions with respect to which the engineer recommends
remediation and which were not disclosed in the Existing Report, and the cost
to perform such remediation, as reasonably determined by Purchaser and Seller,
is not greater than $50,000, then (a) Closing shall occur as provided in the
Purchase Agreement, as amended hereby, and (b) Purchaser shall be responsible
for the first $25,000 of such costs and Seller agrees to provide to Purchaser a
credit at closing equal to the amount by which the estimated cost of
remediation exceeds $25,000, said credit not to exceed $25,000. In the event
the reasonably estimated cost to remediate conditions not disclosed in the
Existing Report exceeds $50,000, then Purchaser shall have the right either to
terminate the Agreement by written notice to Seller given no later than three
business days after Purchaser has received the new environmental report or to
acquire the Property subject to such conditions with a credit against the
Purchase Price of $25,000.
(c) Seller agrees to use its commercially reasonable efforts to
remove all other violations disclosed in writing to Seller prior to Closing
provided Seller shall not be obligated to expend any funds or incur liability
in an amount in excess of $5,000 in the aggregate in connection therewith.
(d) With respect to the Local Law 10 Filing and the Class E system
approval, Seller agrees to cause the filing to be made and approval obtained
and, subject to the following sentence with respect to the Local Law 10 Filing,
to correct any hazardous conditions identified in the filing or in the
approval. Notwithstanding the foregoing, with respect to any hazardous
condition disclosed in the Local Law 10 Filing, Seller shall not be obligated
to expend any funds or incur any liability in an amount in excess of $10,000 in
the aggregate. It shall be a condition to Purchaser's obligation to close that
the Class E system approval has been issued and delivered to Purchaser and the
Local Law 10 Filing filed (with evidence thereof furnished to Purchaser) and
all material hazardous conditions corrected.
(e) Seller's sole liability, and Purchaser's sole remedies, with
respect to the violations described above and all other violations of which
Purchaser has knowledge as of the date hereof, shall be as set forth in clauses
(a), (b), (c) and (d) above.
6. The Closing Date shall be November 12, 1996 provided Purchaser shall
have the right to extend the Closing Date to a date no later than December 12,
1996 provided Purchaser delivers to Seller written notice no later than October
26, 1996 and pays to Seller, on or before November 8, 1996, the amount of
$200,000 which shall be applied toward the Purchase Price and which amount
shall be deemed "Additional Earnest Money".
<PAGE>
7. No later than fourteen (14) days prior to the Closing Date, Seller
agrees to deliver notice of cancellation to the parties to the Service
Contracts identified on Exhibit G which are cancelable on 30 day's notice or
less and which are identified in writing by Purchaser to Seller. In addition,
Seller agrees not to enter into any new service contracts or except as provided
in the preceding sentence with respect to termination, modify any existing
service contracts, which new service contract or amendment would be binding on
Purchaser after Closing.
8. (a) Paragraph 16.B(vi) is deleted in its entirety and the following
is substituted therefor:
"Seller has not either directly or through its agents, and other third
parties, entered into any contract with any labor organization or service
provider (other than those listed on Exhibit G) regarding the Property, nor is
it permitted to do so through the Closing Date"; and
(b) Paragraph 16.B(vii) is amended by deleting the phrase "and
updated as of the Closing Date".
9. On the Closing Date, Seller shall assign to Purchaser all of Seller's
right, title and interest if any, in and to all tax certiorari proceedings and
the right to receive payment as a result thereof. Purchaser agrees to
indemnify, defend and hold Seller and all Affiliates of Seller harmless from
any and all liability, costs, and expense (including without limitation
reasonable attorney's fees, court costs and costs of appeal), suffered or
incurred by Seller or Affiliates of Seller as a result thereof, including,
without limitation, claims of current and prior tenants of the Property.
Seller agrees to cooperate, at no cost, expense or liability to Seller, with
Purchaser in connection with the tax certiorari proceedings, if any, including,
without limitation, making the books and records relating to the tax certiorari
proceedings available to the New York City Law Department should they request
an examination of the same.
10. Seller agrees to cooperate with Purchaser in Purchaser's effort to
obtain financing for the Property provided in no event shall Seller be
obligated to incur any liability or expend any funds in connection therewith.
Without limiting the generality of the foregoing, Seller agrees to cooperate in
an effort to obtain non-disturbance agreements from tenants of the Property
including, without limitation, First Dept., Leo Wolleman and Steve
Schwartzapfel. It shall not be a condition to Purchaser's obligation to close
the transaction that non-disturbance agreements are obtained.
11. This Amendment may be executed in multiple counterparts, each of
which shall be deemed an original but all of which shall constitute one and the
same instrument.
12. Exhibit K is modified to reflect that the reference to "Service
Contracts" as defined therein shall be limited to only those Service Contracts
set forth on Exhibit G which have not been cancelled on or before the Closing
Date as provided in Paragraph 7 hereof and those service contracts entered into
after the date hereof with Purchaser's consent as provided in Paragraph 7
hereof.
<PAGE>
13. Supplementing Paragraph 18 of the Purchase Agreement and without
limiting the provisions contained therein, Seller agrees to use commercially
reasonable efforts (but without any obligation to expend any funds or incur any
liability) to obtain Tenant Certificates from all of the tenants of the
Property.
14. Except as amended hereby, the Purchase Agreement remains unmodified
and in full force and effect, including, without limitation, Paragraphs 2, 7
and 10 thereof.
PURCHASER:
OLMSTEAD PROPERTIES, INC., a New York corporation
By: /s/ Samuel Rosenblatt
-------------------------------------
Name: Samuel Rosenblatt
-------------------------------------
Its: President
-------------------------------------
SELLER:
45 W. 45TH STREET LIMITED PARTNERSHIP,
an Illinois limited partnership
By: 45 W. 45TH Street Partners, Inc., an Illinois
corporation, its general partner
By: /s/ James E. Mendelson
-------------------------------------
Name: James E. Mendelson
-------------------------------------
Its: Authorized Rep.
-------------------------------------
BALCOR:
THE BALCOR COMPANY, a Delaware corporation
By: /s/ James E. Mendelson
--------------------------------------
Name: James E. Mendelson
--------------------------------------
Its: Authorized Rep.
--------------------------------------
<PAGE>
