FORM 10-KSB--ANNUAL OR TRANSITIONAL REPORT UNDER
SECTION 13 OR 15(d)
(As last amended by 34-31905, eff. 4/26/93)
FORM 10-KSB
[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [Fee Required]
For the fiscal year ended December 31, 1995
or
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [No Fee Required]
For the transition period.........to.........
Commission file number 0-16684
MULTI-BENEFIT REALTY FUND '87-1
(Name of small business issuer in its charter)
California 94-3026785
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Insignia Financial Plaza, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices) (Zip Code)
Issuer's telephone number (864) 239-1000
Securities registered under Section 12(b) of the Exchange Act:
None
Securities registered under Section 12(g) of the Exchange Act:
Units of Depositary Receipts
(Title of class)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will 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-KSB or any
amendment to this Form 10-KSB. [X]
State issuer's revenues for its most recent fiscal year. $4,631,000.
State the aggregate market value of the voting partnership interests held by
non-affiliates computed by reference to the price at which the partnership
interests were sold, or the average bid and asked prices of such partnership
interests, as of December 31, 1995. $3,424,720.
DOCUMENTS INCORPORATED BY REFERENCE
None
PART I
Item 1. Description of Business
Multi-Benefit Realty Fund '87-1 (the "Partnership" or "Registrant") was
organized on September 8, 1986, as a limited partnership under the California
Revised Limited Partnership Act. On December 10, 1986, the Partnership
registered with the Securities and Exchange Commission under the Securities Act
of 1933 (File No. 33-8908) and commenced a public offering for sale of $60
million of Units of Depositary Receipts (collectively, the "Units," and
individually, "Unit"). Two classes of Units ("A" Units and "B" Units, herein so
called), entitled to different rights and priorities as to cash distributions
and partnership allocations, were offered. The Units represent economic rights
attributable to the limited partnership interests in the Partnership and entitle
the holders ("Unitholders") thereof to participate in certain allocations and
distributions of the Partnership. The General Partner of the Partnership
intended that the "A" Units and "B" Units be allocated such that the "B" Units
would not exceed 25% nor be less than 20% of the total amount of the Units sold.
At the end of the current fiscal year, the "B" Units represented approximately
44% of the total amount of the Units sold. The General Partner is currently
considering several alternative procedures to conform the unit allocations more
closely to the intended investment objectives. The General Partner intends to
continue such consideration, but has not yet determined a feasible alternative.
The Corporate Limited Partner of the Partnership is Multi-Benefit '87-1
Depositary Corporation, an affiliate of the General Partner. The Corporate
Limited Partner serves as depositary for the Units pursuant to a Depositary
Agreement entered into with the Partnership. The Partnership filed a Form 8-A
Registration Statement with the SEC and registered its Units under the
Securities Exchange Act of 1934 (File No. 0-16684) on April 11, 1988. The sale
of Units closed on September 30, 1988, with 172,436 Units sold at $100 each, or
gross proceeds of approximately $17.2 million to the Partnership. The
Partnership retired a total of 1,000 Units during 1993, in accordance with its
Partnership Agreement ("Agreement"). The Partnership gave no consideration for
the Units retired. The Partnership may repurchase or retire any Units, at its
absolute discretion, but is under no obligation to do so.
Upon the Partnership's formation in 1986, Consolidated Capital Equities
Corporation ("CCEC"), a Colorado corporation, was the sole general partner of
the Partnership and the Corporate Limited Partner, a wholly-owned subsidiary of
CCEC, was the sole limited partner. In 1988, through a series of transactions,
Southmark Corporation ("Southmark") acquired a controlling interest in CCEC. In
December 1988, CCEC filed for reorganization under Chapter 11 of the United
States Bankruptcy Code. In 1990, as part of CCEC's reorganization plan, ConCap
Equities, Inc. ("CEI") acquired CCEC's general partner interest in the
Partnership and in 15 other affiliated public limited partnerships (the
"Affiliated Partnerships"), acquired the stock of the Corporate Limited Partner,
and CEI replaced CCEC as managing general partner in all 16 partnerships. The
selection of CEI as the sole managing general partner was approved by a majority
of the Unitholders in the Partnership and of the limited partners in each of the
Affiliated Partnerships pursuant to a solicitation of the Unitholders dated
August 10, 1990. As part of this solicitation, the Unitholders also approved an
amendment to the Partnership Agreement to limit changes of control of the
Partnership.
All of CEI's outstanding stock is owned by GII Realty, Inc. In December
1994, the parent of GII Realty, Inc., entered into a transaction (the "Insignia
Transaction") in which, among other things, MAE-ICC, Inc., a wholly owned
subsidiary of Metropolitan Asset Enhancement, L.P. ("MAE"), an affiliate of
Insignia Financial Group, Inc. ("Insignia") acquired an option (exercisable in
whole or in part from time to time) to purchase all of the stock of GII Realty,
Inc. and, pursuant to a partial exercise of such option, acquired 50.5% of that
stock. As a part of the Insignia Transaction, MAE-ICC, Inc. also acquired all
of the outstanding stock of Partnership Services, Inc., an asset manager and a
subsidiary of Insignia acquired all of the outstanding stock of Coventry
Properties, Inc., a property manager. In addition, confidentiality,
non-competition, and standstill arrangements were entered into between certain
of the parties. Those arrangements, among other things, prohibit GII Realty's
former sole shareholder from purchasing Partnership Units for a period of three
years. On October 24, 1995, MAE-ICC, Inc. exercised the remaining portion of
its option to purchase all of the remaining outstanding capital stock of GII
Realty, Inc. held by Gordon Realty, Inc. Pursuant to the terms of the option,
MAE-ICC, Inc. acquired the remaining 49.5% of the outstanding capital stock of
GII Realty, Inc.
A further description of the Partnership's business is included in
Management's Discussion and Analysis or Plan of Operation included in "Item 6"
of this Form 10-KSB.
The Registrant has no employees. Management and administrative services are
performed by the General Partner and by Insignia Management Group, L.P., an
affiliate of Insignia Financial Group, Inc. ("Insignia"), an affiliate of the
General Partner. Pursuant to a management agreement between them, Insignia
Management Group, L.P. provides property management services to the Registrant.
The real estate business in which the Partnership is engaged is highly
competitive and the Partnership is not a significant factor in this industry.
The Registrant's property is subject to competition from similar properties in
the vicinity in which the property is located. In addition, various limited
partnerships have been formed by the General Partner and/or its affiliates to
engage in business which may be competitive with the Registrant.
Item 2. Description of Properties
The following table sets forth the Registrant's investments in properties:
Date of
Property Purchase Type of Ownership Use
Carlin Manor Apartments 11/87 Fee ownership. Apartment
Columbus, Ohio 278 units
Hunt Club Apartments 05/87 Fee ownership, subject Apartment
Indianapolis, Indiana to first mortgage. 200 units
Shadow Brook Apartments 05/87 Fee ownership, subject Apartment
West Valley City, Utah to first mortgage. 300 units
Schedule of Properties:
(in thousands)
<TABLE>
<CAPTION>
Gross
Carrying Accumulated Federal
Property Value Depreciation Rate Method Tax Basis
<S> <C> <C> <C> <C> <C>
Carlin Manor Apartments $ 6,329 $ 3,030 5-30 SL $ 5,517,811
Hunt Club Apartments 6,701 2,959 5-30 SL 4,439,057
Shadow Brook Apartments 10,043 3,031 5-30 SL 6,880,020
Total $23,073 $ 9,020 $16,836,888
</TABLE>
See Note A to the financial statements in "Item 7" for a description of
Partnership's depreciation policy.
Schedule of Mortgages:
(in thousands)
<TABLE>
<CAPTION>
Principal Principal
Balance At Stated Balance
December 31, Interest Period Maturity Due At
Property 1995 Rate Amortized Date Maturity
<S> <C> <C> <C> <C> <C>
Carlin Manor N/A N/A N/A N/A N/A
Hunt Club
1st Mortgage $ 3,911 8.30% 84 mos. 10/00 $3,575
Shadow Brook
1st Mortgage 7,420 9.19% 60 mos. 06/97 7,253
$ 11,331
</TABLE>
Average annual rental rate and occupancy for 1995 and 1994 for each property:
Average Annual Average Annual
Rental Rates Occupancy
1995 1994 1995 1994
Carlin Manor $5,359/unit $5,325/unit 86% 84%
Hunt Club 6,893/unit 6,793/unit 91% 91%
Shadow Brook 5,763/unit 5,792/unit 98% 98%
As noted under "Item 1. Description of Business", the real estate industry is
highly competitive. All of the properties of the partnership are subject to
competition from other residential apartment complexes in the area. The
Corporate General Partner believes that all of the properties are adequately
insured. The multifamily residential properties' lease terms are for one year
or less. No residential tenant leases 10% or more of the available rental
space.
Real estate taxes and rates in 1995 for each property were (in thousands):
1995 1995
Billing Rate
Carlin Manor $ 97 5.02%
Hunt Club Park 158 9.49%
Shadow Brook 84 1.47%
Item 3. Legal Proceedings
The Partnership is unaware of any pending or outstanding litigation that is
not of a routine nature. The General Partner believes that all such matters are
adequately covered by insurance and will be resolved without a material adverse
effect upon the business, financial condition, results of operations, or
liquidity of the Partnership.
Item 4. Submission of Matters to a Vote of Partners
During the fiscal year ended December 31, 1995, no matter was submitted to a
vote of the Unitholders through the solicitation of proxies or otherwise.
PART II
Item 5. Market For the Registrant's Units of Depository Receipts and Related
Security Holder Matters
(A) No established public trading market for the Units exists nor is one
expected to develop.
(B) Title of Class: Number of Record Unitholders:
Units of Depositary Receipts
A Units 96,284 as of December 31, 1995
B Units 75,152 as of December 31, 1995
(C) Distributions of $918,102 were made in 1995, while distributions of
approximately $505,000 were paid in 1994. All of the distributions to the
limited partners in both 1995 and 1994 were paid to the "A" Unitholders.
No distributions have been made to the "B" Unitholders.
Future distributions will depend on the levels of cash generated from
operations, refinancings, property sales and the availability of cash reserves.
At this time, the General Partner anticipates that cash distributions will be
made during fiscal 1996.
Item 6. Management's Discussion and Analysis or Plan of Operation
This item should be read in conjunction with the consolidated financial
statements and other items contained elsewhere in this report.
Results of Operations
The Partnership's net income for the year ended December 31, 1995, was
$383,000 compared to a net loss of approximately $1,396,000 for the year ended
December 31, 1994 (see Note D of the financial statements for a reconciliation
of these amounts to the Partnership's federal taxable income). The increase in
net income for the year ended December 31, 1995 is primarily attributable to the
$612,000 casualty gain recorded for the fire at Shadow Brook Apartments, which
destroyed twelve units and damaged twelve others. Also contributing to the
increase in net income is an increase in rental income which resulted from
increased rental rates during the year ended December 31, 1995. Net income also
increased due to lower expenses for the year ended December 31, 1995 compared to
the year ended December 31, 1994. Expenses decreased as a result of a $966,000
provision for possible losses recorded for Carlin Manor in 1994. No such
provisions were deemed necessary for 1995.
Offsetting the increase in income is a decrease in interest income due to
lower investment balances for the year ended December 31, 1995, compared to the
year ended December 31, 1994. Other income also decreased as a result of the
receipt of approximately $56,000 in cash and stock in March 1994 as partial
recovery of claims against Southmark Corporation's Chapter 11 bankruptcy
proceeding which was included in other income for the year ended December 31,
1994. No additional judgements were granted on the Partnership's claims in
1995.
The loss on disposal of property was the result of roof write-offs at the
Hunt Club Apartments due to ongoing roof repairs.
As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of each of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expense. As part of
this plan, the General Partner attempts to protect the Partnership from the
burden of inflation-related increases in expenses by increasing rents and
maintaining a high overall occupancy level. However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.
Liquidity and Capital Resources
At December 31, 1995, the Partnership had unrestricted cash of approximately
$1,234,000 versus approximately $850,000 at December 31, 1994. The increase in
net cash provided by operating activities is primarily attributable to the
increase in net income (as discussed above), an increase in other liabilities
due to an increase in interest payable and unearned rental income and an
increase in accrued taxes, which was partially offset by the casualty gain. Net
cash provided by investing activities increased due to an increase in insurance
proceeds due to the Shadow Brook fire and an increase in net proceeds from the
sale of securities available for sale. The increases were partially offset by
an increase in property improvements and replacements. Finally, net cash used in
financing activities increased due to an increase in distributions paid.
The Partnership has no material capital programs scheduled to be performed in
1996, although certain routine capital expenditures and maintenance expenses
have been budgeted. These capital expenditures and maintenance expenses will be
incurred only if cash is available from operations or is received from the
capital reserve account.
The sufficiency of existing liquid assets to meet future liquidity and
capital expenditure requirements is directly related to the level of capital
expenditures required at the property to adequately maintain the physical assets
and other operating needs of the Partnership. Such assets are currently thought
to be sufficient for any near-term needs of the Partnership. The mortgage
indebtedness of approximately $11,414,000, including interest payable, is
amortized over varying periods and requires balloon payments in June 1997 and
October 2000 at which time the properties will be refinanced or sold. For the
year ended December 31, 1995, distributions of approximately $909,000 or $9.44
per "A" Unit were made to the "A" Unit limited partners. Matching distributions
of approximately $9,000 were also made to the General Partner. Future cash
distributions will depend on the levels of cash generated from operations,
capital expenditure requirements, property sales and the availability of cash
reserves.
Item 7. Financial Statements
MULTI-BENEFIT REALTY FUND '87-1
LIST OF FINANCIAL STATEMENTS
Reports of Independent Auditors
Consolidated Balance Sheet--December 31, 1995
Consolidated Statements of Operations--Years ended December 31, 1995 and 1994
Consolidated Statements of Changes in Partners' Capital (Deficit)--Years ended
December 31, 1995 and 1994
Consolidated Statements of Cash Flows--Years ended December 31, 1995 and 1994
Notes to Consolidated Financial Statements
Report of Ernst & Young LLP, Independent Auditors
The Partners
Multi-Benefit Realty Fund '87-1
We have audited the accompanying consolidated balance sheet of Multi-Benefit
Realty Fund '87-1 as of December 31, 1995, and the related consolidated
statements of operations, changes in partners capital (deficit) and cash flows
for the year then ended. These financial statements are the responsibility of
the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the 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 the
Partnership's management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Multi-
Benefit Realty Fund '87-1 as of December 31, 1995, and the consolidated results
of its operations and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
/s/ERNST & YOUNG LLP
Greenville, South Carolina
February 13, 1996
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Partners of
Multi-Benefit Realty Fund '87-1:
We have audited the accompanying consolidated statements of operations,
partners' capital (deficit) and cash flows of Multi-Benefit Realty Fund '87-1 (a
California limited partnership) for the year ended December 31, 1994. These
financial statements are the responsibility of the Partnership's management.
Our responsibility is to express an opinion on these financial statements based
on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the 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 audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the results of operations and cash flows of Multi-Benefit
Realty Fund '87-1 for the year ended December 31, 1994, in conformity with
generally accepted accounting principles.
/s/ Arthur Andersen, LLP
Dallas, Texas
March 23, 1995
MULTI-BENEFIT REALTY FUND '87-1
CONSOLIDATED BALANCE SHEET
(in thousands, except unit data)
December 31, 1995
Assets
Cash and cash equivalents:
Unrestricted $ 1,234
Restricted - tenant security deposits 132
Securities available for sale 305
Other assets 610
Investment properties:
Land $ 1,742
Buildings and related personal property 21,331
23,073
Less accumulated depreciation (9,020) 14,053
$ 16,334
Liabilities and Partners' Capital (Deficit)
Liabilities
Mortgage notes payable $ 11,331
Accrued taxes 263
Other liabilities 851
Partners' Capital (Deficit)
General Partner $ (113)
Limited Partner "A" Unitholders -
96,284 units outstanding 190
Limited Partner "B" Unitholders -
75,152 units outstanding 3,812 3,889
$ 16,334
See Accompanying Notes to Consolidated Financial Statements
MULTI-BENEFIT REALTY FUND '87-1
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except unit data)
<TABLE>
<CAPTION>
Years Ended December 31,
1995 1994
<S> <C> <C>
Revenues:
Rental income $ 4,530 $ 4,216
Other income 101 188
Total revenues 4,631 4,404
Expenses:
Operating 2,543 2,544
General and administrative 203 185
Partnership management fees 82 45
Depreciation 959 991
Interest 1,056 1,069
Provision for possible loss -- 966
Total expenses 4,843 5,800
Casualty gain 612 --
Loss on disposal of property (17) --
Net income (loss) $ 383 $ (1,396)
Net income (loss) allocated to general
partner (1%) $ 4 $ (14)
Net income (loss) allocated to limited
partners (99%) 379 (1,382)
$ 383 $ (1,396)
Net income (loss) per "A" Unit $ 2.21 $ (8.06)
Net income (loss) per "B" Unit $ 2.21 $ (8.06)
<FN>
See Accompanying Notes to Consolidated Financial Statements
</TABLE>
MULTI-BENEFIT REALTY FUND '87-1
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
(in thousands, except unit data)
<TABLE>
<CAPTION>
LIMITED PARTNERS
Total
Partners'
General Capital
Partner "A" Units "B" Units (Deficit)
<S> <C> <C> <C> <C>
Original capital contributions $ 1 $ 9,706 $ 7,538 $ 17,245
Limited partnership units at
December 31, 1995 and
December 31, 1994 -- 96,284 75,152 171,436
Partners' capital (deficit)
at December 31, 1993 $ (89) $ 2,162 $ 4,252 $ 6,325
Net loss for the year ended
December 31, 1994 (14) (776) (606) (1,396)
Distributions (5) (500) -- (505)
Partners' capital (deficit)
at December 31, 1994 $ (108) $ 886 $ 3,646 $ 4,424
Net income for the year ended
December 31, 1995 4 213 166 383
Distributions for the year
ended December 31, 1995 (9) (909) -- (918)
Partners' capital (deficit)
at December 31, 1995 $ (113) $ 190 $ 3,812 $ 3,889
<FN>
See Accompanying Notes to Consolidated Financial Statements
</TABLE>
MULTI-BENEFIT REALTY FUND '87-1
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Years Ended
December 31,
1995 1994
Cash flows from operating activities:
Net income (loss) $ 383 $(1,396)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation 959 991
Amortization of loan costs 43 43
Casualty gain (612) --
Loss on disposition of property 17 --
Provision for possible loss -- 966
Change in accounts:
Restricted cash (132) --
Other assets (281) (113)
Accrued taxes 17 (16)
Other liabilities 312 150
Net cash provided by
operating activities 706 625
Cash flows from investing activities:
Property improvements and replacements (1,229) (64)
Proceeds from sale of securities
available for sale 3,447 646
Purchase of securities available for sale (2,305) (145)
Net insurance proceeds from property damage 831 --
Net cash provided by
investing activities 744 437
Cash flows from financing activities:
Payments on mortgage notes payable (148) (148)
Distributions paid (918) (505)
Net cash used in financing
activities (1,066) (653)
Net increase in cash and cash equivalents 384 409
Cash and cash equivalents at beginning of period 850 441
Cash and cash equivalents at end of period $ 1,234 $ 850
Supplemental disclosure of cash
flow information:
Cash paid for interest $ 929 $ 1,027
See Accompanying Notes to Consolidated Financial Statements
MULTI-BENEFIT REALTY FUND '87-1
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note A - Organization and Significant Accounting Policies
Organization: Multi-Benefit Realty Fund '87-1 (the "Partnership ) was organized
as a limited partnership under the laws of the State of California pursuant to a
Certificate and Agreement of Limited Partnership filed September 8, 1986. The
Partnership commenced operations on February 27, 1987, the date on which impound
requirements were met. The Partnership operates three apartment properties
located in the Mid-west and West.
Upon the Partnership's formation in 1986, Consolidated Capital Equities
Corporation ("CCEC"), a Colorado corporation, was the sole general partner of
the Partnership and the Corporate Limited Partner, a wholly-owned subsidiary of
CCEC, was the sole limited partner. In 1988, through a series of transactions,
Southmark Corporation ("Southmark") acquired a controlling interest in CCEC. In
December 1988, CCEC filed for reorganization under Chapter 11 of the United
States Bankruptcy Code. In 1990, as part of CCEC's reorganization plan, ConCap
Equities, Inc. ("CEI"), acquired CCEC's general partner interest in the
Partnership and in 15 other affiliated public limited partnerships (the
"Affiliated Partnerships"), acquired the stock of the Corporate Limited Partner,
and CEI replaced CCEC as managing general partner in all 16 partnerships. The
selection of CEI as the sole managing general partner was approved by a majority
of the Unitholders in the Partnership and of the limited partners in each of the
Affiliated Partnerships pursuant to a solicitation of the Unitholders dated
August 10, 1990. As part of this solicitation, the Unitholders also approved an
amendment to the Partnership Agreement to limit changes of control of the
Partnership.
All of CEI's outstanding stock is owned by GII Realty, Inc. In December 1994,
the parent of GII Realty, Inc., entered into a transaction (the "Insignia
Transaction") in which, among other things, MAE-ICC, Inc., a wholly owned
subsidiary of Metropolitan Asset Enhancement, L.P. ("MAE"), an affiliate of
Insignia Financial Group, Inc. ("Insignia") acquired an option (exercisable in
whole or in part from time to time) to purchase all of the stock of GII Realty,
Inc. and, pursuant to a partial exercise of such option, acquired 50.5% of that
stock. As a part of the Insignia Transaction, MAE-ICC, Inc. also acquired all
of the outstanding stock of Partnership Services, Inc., an asset manager and a
subsidiary of Insignia acquired all of the outstanding stock of Coventry
Properties, Inc., a property manager. In addition, confidentiality,
non-competition, and standstill arrangements were entered into between certain
of the parties. Those arrangements, among other things, prohibit GII Realty's
former sole shareholder from purchasing Partnership Units for a period of three
years. On October 24, 1995, MAE-ICC, Inc. exercised the remaining portion of
its option to purchase all of the outstanding capital stock of GII Realty, Inc.
held by Gordon Realty, Inc. Pursuant to the terms of the option, MAE-ICC, Inc.
acquired the remaining 49.5% of the outstanding capital stock of GII Realty,
Inc.
Principles of Consolidation: The financial statements include all the accounts
of the Partnership and its wholly owned partnership. All significant
interpartnership balances have been eliminated.
Use of Estimates: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
Partners' Capital (Deficit): The Partnership has issued two classes of Units of
Depositary Receipts ("Units"), "A" Units and "B" Units. The two classes of both
are entitled to different rights and priorities as to cash distributions and
partnership allocations. The Units represent economic rights attributable to
the limited partnership interests in the Partnership and entitle the holders
thereof ("Unitholders") to participate in certain allocations and distributions
of the Partnership.
The Partnership Agreement("Agreement") provides for the allocation of net income
and net losses from operations for both financial and tax reporting purposes as
follows: net profits are allocated 99% to the holders of "A" Units until they
have been allocated income equal to their priority return, and 1% to the General
Partner. The priority return represents 9% per annum return on invested capital
for the Partnership's first fiscal year, 9.5% for the second year and 10% per
annum thereafter. Additional net profits are allocated 1% to the General
Partner and 99% to the Unitholders. Net losses are allocated 1% to the General
Partner and 99% to the Unitholders until their capital accounts are depleted.
Additional net losses are allocated to the General Partner.
Distributable cash from operations is allocated 1% to the General Partner and
99% to the Unitholders with holders of "A" Units first receiving their priority
return, then the balance is split equally between holders of "A" Units and "B"
Units. The General Partner receives 1% of surplus funds and holders of "A"
Units will receive their priority return, then both classes of Unitholders will
receive a return of their invested capital. Any remainder will be allocated 10%
to holders of "A" Units and 90% to holders of "B" Units.
Cash and Cash Equivalents:
Unrestricted - Unrestricted cash includes cash on hand and in banks,
money market funds and U.S. Treasury Bills with original maturities less than 90
days. U.S. Treasury Notes with original maturities greater than 90 days are
considered to be investments. At certain times, the amount of cash deposited at
a bank may exceed the limit on insured deposits.
Restricted cash - tenant security deposits - The Partnership requires
security deposits from lessees for the duration of the lease and such deposits
are considered restricted cash. Deposits are refunded when the tenant vacates,
provided the tenant has not damaged its space and is current on its rental
payments.
Escrows for Taxes and Insurance: Funds, totaling approximately $208,000, which
are included in other assets, are held by the Partnership and the mortgage
holder and are designated for the payment of real estate taxes and insurance.
Capital Replacement Reserve: In relation to the mortgage at Hunt Club, the
mortgage lender has required a "replacement reserve' for certain capital
improvements. At December 31, 1995, the balance was $88,498 and is included in
other assets.
Investment Properties: Prior to the fourth quarter of 1995, investment
properties were carried at the lower of cost or estimated fair value, which was
determined using the higher of the property's non-recourse debt amount, when
applicable, or the net operating income of the investment property capitalized
at a rate deemed reasonable for the type of property. During the fourth quarter
of 1995 the Partnership adopted FASB Statement No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of,"
which requires impairment losses to be recorded on long-lived assets used in
operations when indicators of impairment are present and the undiscounted cash
flows estimated to be generated by those assets are less than the assets'
carrying amount. The impairment loss is measured by comparing the fair value of
the asset to its carrying amount. The effect of adoption was not material.
Investments: Securities available-for-sale: The General Partner determines the
appropriate classification of debt securities at the time of purchase and
reevaluates such designation as of each balance sheet date. Debt securities are
classified as held-to-maturity when the Partnership has the positive intent and
ability to hold the securities to maturity. Held-to-maturity securities are
stated at amortized cost, adjusted for amortization of premiums and accretion
of discounts to maturity. Such amortization is included in investment income.
Interest on securities classified as held-to-maturity is included in investment
income.
Presently, all of the Partnership's investments are classified as available-for-
sale. Available-for-sale securities are carried at fair value, with the
unrealized gains and losses, net of tax, reported in a separate component of
partner's capital. The amortized cost of debt securities in this category is
adjusted for amortization of premiums and accretion of discounts to maturity.
Such amortization is included in investment income. Realized gains and losses
and declines in value judged to be other-than-temporary on available-for-sale
securities are included in investment income. The cost of securities sold is
based on the specific identification method. Interest and dividends on
securities classified as available-for-sale are included in investment income.
Depreciation: Depreciation is provided by the straight-line method over the
estimated lives of the apartment properties and related personal property. For
Federal income tax purposes, the modified accelerated cost recovery method is
used for depreciation of (1) real property additions over 27 1/2 years and (2)
personal property additions over 5-15 years.
Loan Costs: Loan costs of $151,167 are included in other assets and are being
amortized on a straight-line basis over the life of the loans.
Leases: The Partnership generally leases apartment units for twelve-month terms
or less. The Partnership recognizes income as earned on its leases. In
addition, management finds it necessary to offer rental concessions during
particularly slow months or in response to heavy competition from other similar
complexes in the area. Concessions are charged to expenses as incurred.
Advertising: The Partnership expenses the costs of advertising as incurred.
Advertising expense, included in operating expenses, was approximately $79,000
and $66,000 for the years ended December 31, 1995 and 1994, respectively.
Fair Value: In 1995, the Partnership implemented Statement of Financial
Accounting Standards No. 107, "Disclosure about Fair Value of Financial
Instruments," which requires disclosure of fair value information about
financial instruments for which it is practicable to estimate that value. The
carrying amount of the Partnership's cash and cash equivalents approximates fair
value due to short-term maturities. The Partnership estimates the fair value of
its fixed rate mortgages by discounted cash flow analysis, based on estimated
borrowing rates currently available to the Partnership.
Note A - Organization and Significant Accounting Policies (continued)
Reclassifications: Certain reclassifications have been made to the 1994
information to conform to the 1995 presentation.
Note B - Investments
Investments, stated at cost, consist of the following at December 31, 1995, (in
thousands):
Interest Face Maturity
Rate Amount Cost Date
First Union Corporation
U.S. Treasury Note 7.38% $200 $197 05/15/96
First Union Corporation
U.S. Treasury Note 7.88% 100 101 07/15/96
Southmark Corporation
Redeemable Series A
Preferred Stock N/A 7 7 N/A
$305
The Partnership's investments are classified as available for sale. The General
Partner believes that the market value of the investments is approximately the
same as the cost.
Note C - Mortgage Notes Payable
The principal terms of mortgage notes payable are as follows (in thousands):
Principal Monthly Principal
Balance At Payment Stated Balance
December 31, Including Interest Maturity Due At
Property 1995 Interest Rate Date Maturity
Hunt Club
1st mortgage $ 3,911 $ 32 8.30% 10/01/00 $3,575
Shadow Brook
1st mortgage 7,420 66 9.19% 06/01/97 7,253
Totals $11,331 $ 98
The estimated fair values of the Partnership's aggregate debt is approximately
$11,502,000. This value represents a general approximation of possible value
and is not necessarily indicative of the amount the Partnership may pay in
actual market transactions.
Note C - Mortgage Notes Payable (continued)
The mortgage notes payable are non-recourse and are secured by pledge of all of
the Partnership's apartment properties and by pledge of revenues from the
apartment properties. Certain of the notes require prepayment penalties if
repaid prior to maturity and prohibit resale of the properties subject to
existing indebtedness.
Scheduled principal payments of mortgage notes payable subsequent to December
31, 1995, are as follows (in thousands):
1996 $ 176
1997 7,369
1998 71
1999 77
2000 3,638
$11,331
Note D - Income Taxes
The Partnership has received a ruling from the Internal Revenue Service that it
will be classified as a partnership for Federal income tax purposes.
Accordingly, no provision for income taxes is made in the financial statements
of the Partnership. Taxable income or loss of the Partnership is reported in
the income tax returns of its partners.
The following is a reconciliation of reported net loss and Federal taxable loss:
1995 1994
Net income (loss) as reported $ 382,595 $(1,396,007)
Add (deduct):
Write-downs of fixed asset values -- 966,000
Deferred casualty gain (611,893) --
Depreciation differences 155,523 125,673
Change in prepaid rental 95,296 7,012
Other (88,584) 71
Federal taxable loss $ (67,063) $ (297,251)
Federal taxable loss per limited
partnership unit $ (.39) $ (1.72)
Note D - Income Taxes (continued)
The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net assets and liabilities:
Net assets as reported $3,889,053
Buildings 2,031,354
Accumulated depreciation 752,941
Syndication fees 1,975,199
Other 171,520
Net assets - tax basis $8,820,067
Note E - Related Party Transactions
Multi-Benefit Realty Fund '87-1 ("Partnership") has no employees and is
dependent on the General Partner and its affiliates for the management and
administration of all partnership activities. The Partnership paid property
management fees based upon collected gross rental revenues for property
management services as noted below for the year ended December 31, 1995, and
December 31, 1994, respectively. Such fees are included in operating expense on
the statement of operations. For the year ended December 31, 1994, a portion
of such property management fees were paid to property management companies for
day-to-day property management services and a portion was paid to Partnership
Services, Inc. ("PSI") for advisory services related to day-to-day property
operations. Coventry Properties, Inc. ("Coventry"), an affiliate of the General
Partner, provided day-to-day property management responsibilities for one of
the Partnership's properties under the same management fee arrangement as the
unaffiliated management companies. Affiliates of Insignia Financial Group, Inc.
("Insignia"), an affiliate of the General Partner, assumed day-to-day management
responsibilities for all the Partnership's properties in late December 1994.
Fees paid to affiliates of Insignia during the year ended December 31, 1995, and
fees paid to Coventry and PSI during the year ended December 31, 1994, are
reflected in the following table:
For the Year Ended
December 31,
1995 1994
(in thousands)
Property management fees $223 $112
Partnership management fees 82 (1) 45(1)
(1)The Agreement provides for a fee equal to 9% of distributable cash from
operations (as defined in the Agreement) received by the limited
partners be paid to the General Partner for executive and administrative
management services.
The Agreement also provides for reimbursement to the General Partner and its
affiliates for costs incurred in connection with the administration of
Partnership activities. Such reimbursements are included in general and
administrative expense on the statement of operations. The General Partner and
its current and former affiliates (including Coventry), received reimbursements
as reflected in the following table:
Note E - Related Party Transactions (continued)
For the Year Ended
December 31,
1995 1994
(in thousands)
Reimbursement for services of affiliates $120 $97
On July 1, 1995, the Partnership began insuring its properties under a master
policy through an agency and insurer unaffiliated with the General Partner. An
affiliate of the General Partner acquired, in the acquisition of a business,
certain financial obligations from an insurance agency which was later acquired
by the agent who placed the master policy. The current agent assumed the
financial obligations to the affiliate of the General Partner, who receives
payments on these obligations from the agent. The amount of the partnership's
insurance premiums accruing to the benefit of the affiliate of the General
Partner by virtue of the agent's obligations is not significant.
Note F - Commitments and Contingencies
The Partnership is required by the Agreement to maintain working capital
reserves of not less than 5% of Net Invested Capital, as defined in the
Agreement. In the event expenditures are made from this reserve, operating
revenue shall be allocated to such reserve to the extent necessary to maintain
the foregoing level. Reserves, including cash and cash equivalents and
securities available for sale totaling approximately $1.7 million, exceeded the
reserve requirement of approximately $754,000 at December 31, 1995.
The Partnership is unaware of any pending or outstanding litigation that is not
of a routine nature. The General Partner believes that all such matters are
adequately covered by insurance and will be resolved without a material adverse
effect upon the business, financial condition, results of operations, or
liquidity of the Partnership.
Note G - Real Estate and Accumulated Depreciation
<TABLE>
<CAPTION>
Investment Properties Initial cost
(in thousands) To Partnership
Cost
Buildings Capitalized
and Related (Written Down)
Personal Subsequent to
Description Encumbrances Land Property Acquisition
<S> <C> <C> <C> <C>
Carlin Manor Apartments
Columbus, Ohio $ -- $ 408 $ 6,582 $ (661)
Hunt Club Apartments
Indianapolis, Indiana 3,911 485 5,673 543
Shadow Brook Apartments
West Valley City, Utah 7,420 961 8,263 819
Totals $ 11,331 $1,854 $20,518 $ 701
</TABLE>
Note G - Real Estate and Accumulated Depreciation (continued)
<TABLE>
<CAPTION>
Gross Amount At Which Carried
At December 31, 1995
Buildings
And Related
Personal Accumulated Date of Date Depreciable
Description Land Property Total Depreciation Construction Acquired Life-Years
<S> <C> <C> <C> <C> <C> <C> <C>
Carlin Manor Apartments Phase I
Columbus, Ohio $ 296 $ 6,033 $ 6,329 $ 3,030 1967 11/87 5-30
Phase II
1972
Hunt Club Apartments
Indianapolis, Indiana 485 6,216 6,701 2,959 1979 05/87 5-30
Shadow Brook Apartments
West Valley City, Utah 961 9,082 10,043 3,031 1985 05/87 5-30
Totals $1,742 $21,331 $23,073 $9,020
</TABLE>
Reconciliation of Investment Properties and Accumulated Depreciation" (in
thousands):
Years Ended December 31,
1995 1994
Real Estate
Balance at beginning of year $22,208 $23,110
Property improvements 1,229 64
Provisions for possible loss -- (966)
Disposals of property (364) --
Balance at End of Year $23,073 $22,208
Accumulated Depreciation
Balance at beginning of year $ 8,188 $ 7,197
Additions charged to expense 959 991
Disposition of property (127) --
Balance at End of Year $ 9,020 $ 8,188
Note G - Real Estate and Accumulated Depreciation (continued)
The aggregate cost of the real estate for Federal income tax purposes at
December 31, 1995 and 1994 is $25,103,979 and $24,706,534. The accumulated
depreciation taken for Federal income tax purposes at December 31, 1995 and
1994 is $8,267,091 and $7,463,533.
Note H - Other Income
In 1991, the Partnership (and simultaneously other affiliated partnerships)
entered claims in Southmark's Chapter 11 bankruptcy proceeding. These claims
related to Southmark's activities while it exercised control (directly, or
indirectly through its affiliates) over the Partnership. The U.S. Bankruptcy
Court set the Partnership's and the affiliated partnerships' allowed claim at
$11 million, in the aggregate. In March 1994, the Partnership received $49,393
in cash, 901 shares of Southmark Corporation Redeemable Series A Preferred
Stock and 6,591 shares of Southmark Corporation New Common Stock with an
aggregate market value on the date of receipt of $6,631 representing the
Partnership's share of the recovery, based on its pro rata share of the claims
filed.
Note I - Casualty Gain
Shadow Brook Apartments experienced fire damage which destroyed twelve units and
damaged twelve others. The fire resulted in a casualty gain of approximately
$612,000.
Note J - Provision for Possible Loss
A property owned by the Partnership, Carlin Manor, experienced a decline in its
estimated value during 1994 due to economic factors. Accordingly, the
Partnership recorded a $966,000 provision for possible losses on the real estate
in the year ended December 31, 1994.
Item 8. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
As of May 3, 1995, Arthur Andersen LLP, the independent accountant previously
engaged as the principal accountant to audit the financial statements of the
Registrant was dismissed. As of the same date, the firm of Ernst & Young LLP
was engaged to provide that service for the Registrant.
The audit report of Arthur Andersen LLP on the financial statements of the
Partnership as of and for the year ended December 31, 1994 did not contain any
adverse opinion or disclaimer of opinion, nor was it qualified or modified as to
uncertainty, audit scope or accounting principles.
During the Partnership's two most recent fiscal years and any subsequent interim
period preceding the change, there were no disagreements with the former
accountant on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which disagreements, if
not resolved to the satisfaction of the former accountant, would have caused it
to make reference to the subject matter of the disagreements in connection with
its report.
PART III
Item 9. Directors, Executive Officers, Promoters and Control Persons,
Compliance with Section 16(a) of the Exchange Act
The names of the directors and executive officers of ConCap Equities, Inc.
("CEI"), the Partnership's Managing General Partner as of December 31, 1995,
their age and the nature of all positions with CEI presently held by them are as
follows:
NAME OF INDIVIDUAL POSITION IN CEI AGE
Carroll D. Vinson President 55
William H. Jarrard, Jr. Vice President 49
John K. Lines Vice President/Secretary 36
Kelley M. Buechler Assistant Secretary 38
Robert D. Long, Jr. Chief Accounting Officer/ 28
Controller
Carroll D. Vinson has been President of CEI since December 1994 and President of
the MAE subsidiaries since August 1994. Prior to that, during 1993 to August
1994, Mr. Vinson was affiliated with Crisp, Hughes & Co. (a regional CPA firm)
and engaged in various other investment and consulting activities. Briefly, in
early 1993, Mr. Vinson served as President and Chief Executive Officer of
Angeles Corporation, a real estate investment firm. From 1991 to 1993, Mr.
Vinson was employed by Insignia in various capacities including Managing
Director-President during 1991. From 1986 to 1990, Mr. Vinson was President
and a Director of U.S. Shelter Corporation, a real estate services company
which sold substantially all of its assets to Insignia in December 1990.
William H. Jarrard, Jr. has been Vice President of CEI since December 1994, Vice
President of the MAE subsidiaries since January 1992 and Managing Director -
Asset Management and Partnership Administration of Insignia since January 1991.
During the five years prior to joining Insignia in 1991, he served in a similar
capacity for U.S. Shelter. Mr. Jarrard is a graduate of the University of South
Carolina and a certified public accountant.
John K. Lines has been Vice President and Secretary of CEI since December 1994,
Secretary of the MAE subsidiaries since August 1994, General Counsel of Insignia
since June 1994, and General Counsel and Secretary of Insignia since July 1994.
From May 1993 until June 1994, Mr. Lines was the Assistant General Counsel and
Vice President of Ocwen Financial Corporation in West Palm Beach, Florida. From
October 1991 until April 1993, Mr. Lines was a Senior Attorney with Banc One
Corporation in Columbus, Ohio. From May 1984 until October 1991, Mr. Lines was
employed as an associate with Squire Sanders & Dempsey in Columbus, Ohio.
Robert D. Long, Jr. has been Controller and Chief Accounting Officer of CEI
since December 1994 and Chief Accounting Officer and Controller of the MAE
subsidiaries since February 1994. Prior to joining MAE, he was an auditor for
the State of Tennessee and was associated with the accounting firm of Harshman
Lewis and Associates. He is a graduate of the University of Memphis.
Kelley M. Buechler has been Assistant Secretary of CEI since December 1994,
Assistant Secretary of the MAE subsidiaries since January 1992, and Assistant
Secretary of Insignia since January 1991. During the five years prior to
joining Insignia in 1991, she served in a similar capacity for U.S. Shelter.
Ms. Buechler is a graduate of the University of North Carolina.
Item 10. Executive Compensation
No direct compensation was paid or payable by the Partnership to directors or
officers (since it does not have any directors or officers) for the years ended
December 31, 1995 and December 31, 1994. The Partnership has no plans to pay
any such renumeration to any directors or officers of the General Partner in
the future.
Item 11. Security Ownership of Certain Beneficial Owners and Management
(a) Security Ownership of Certain Beneficial Owners
As of December 31, 1995, no other person was known to CEI to own of
record or beneficially more than 5 percent (5%) of the Units of the
Partnership.
(b) Beneficial Owners of Management
Neither CEI nor any of the directors or officers or associates of CEI
own any Units of the Partnership of record or beneficially.
(c) Changes in Control
Beneficial Owners of CEI
As of December 31, 1995, the following persons were known to CEI to be
the beneficial owners of more than 5 percent (5%) of its common stock:
NUMBER OF PERCENT
NAME AND ADDRESS CEI SHARES OF TOTAL
GII Realty, Inc. 100,000 100%
One Insignia Financial Plaza
P.O. Box 1089
Greenville, SC 29602
Item 12. Certain Relationships and Related Transactions
Transactions with Current Management and Others
Except for the transactions described below, neither CEI nor any of its
directors, officers or associates, or any associates of any of them, has had any
interest in any other transaction to which the Partnership is a party. Please
refer to "Item 7 - Financial Statements and Supplementary Data," Note E -
Related Party Transactions, for the amounts and items of permissible
compensation and fees paid to the General Partner and its affiliates and other
related parties for the last two years.
The Registrant has paid property management fees based upon collected gross
rental revenues for property management services as noted below for the years
ended December 31, 1995 and 1994. For the year ended December 31, 1994, a
portion of such property management fees were paid to property management
companies for day-to-day property management services and a portion was paid to
Partnership Services, Inc. ("PSI") for advisory services related to day-to-day
property operations. Coventry Properties, Inc. ("Coventry"), an affiliate of
the General Partner, provided day-to-day property management responsibilities
for one of the Partnership's properties under the same management fee
arrangement as the unaffiliated management companies. Affiliates of Insignia
Financial Group, Inc. ("Insignia"), an affiliate of the General Partner,
assumed day-to-day management responsibilities for all the Partnership's
properties in late December 1994. All of the above referenced agreements with
affiliates of CEI and related parties of the Partnership are subject to the
conditions and limitations imposed by the Agreement.
Litigation with Former Related Parties
In 1991, the Partnership (and simultaneously each of the Affiliated
Partnerships) entered claims in Southmark's Chapter 11 bankruptcy proceeding.
These claims related to Southmark's activities while it exercised control
(directly, or indirectly through its affiliates) over the Partnership. The
Bankruptcy Court set the allowed amount for the Partnership's and the
Affiliated Partnership's claim at $11 million, in aggregate. In March 1994,
the Partnership received 901 shares of Southmark Corporation Redeemable Series
A Preferred Stock and 6,591 shares of Southmark Corporation New Common Stock
with an aggregate estimated market value on the date of receipt of $6,631 and
$49,393 in cash representing the Partnership's share of the recovery based on
its pro rata portion of claims filed.
Item 13. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit 27, Financial Data Schedule, is filed as an exhibit
to this report.
(b) Reports on Form 8-K filed in the fourth quarter of fiscal
1995:
A Form 8-K dated October 24, 1995, was filed reporting the
purchase of the remaining outstanding capital stock of GII
Realty, Inc. by MAE-ICC, Inc.
MULTI-BENEFIT REALTY FUND '87-1
SIGNATURE PAGE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
MULTI-BENEFIT REALTY FUND '87-1
By: CONCAP EQUITIES, INC.
Its General Partner,
March 21, 1996 By: /s/ Carroll D. Vinson
Date Carroll D. Vinson
President
March 21, 1996 By: /s/ Robert D. Long, Jr.
Date Robert D. Long, Jr.
Controller, Principal Accounting Officer
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.
March 21, 1996 By: /s/ Carroll D. Vinson
Date Carroll D. Vinson
Director and President
March 21, 1996 By: /s/ Robert D. Long, Jr.
Date Robert D. Long, Jr.
Controller, Principal Accounting Officer
EXHIBIT INDEX
S-K REFERENCE SEQUENTIAL
NUMBER DOCUMENT DESCRIPTION PAGE NUMBER
3 Certificate of Limited Partnership, N/A
as amended to date.
4 Depositary Agreement (Incorporated N/A
by reference to Registration State-
ment of Registrant (File No. 33-8908)
filed December 10, 1986, as amended
to date).
10.1 Property Management Agreement No. 310 N/A
dated October 23, 1990, by and between
the Partnership and CCEC (Incorporated
by reference to the Quarterly Report
on Form 10-Q for the quarter ended
September 30, 1990).
10.2 Bill of Sale and Assignment dated N/A
October 23, 1990, by and between CCEC and
ConCap Services Company (Incorporated
by reference to the Quarterly Report
on Form 10-Q for the quarter ended
September 30, 1990).
10.3 Assignment and Assumption Agreement dated N/A
October 23, 1990, by and between CCEC
and ConCap Management Limited Partnership
("CCMLP") (Incorporated by reference to
the Quarterly Report on Form 10-Q for
the quarter ended September 30, 1990).
10.4 Assignment and Agreement as to Certain N/A
Property Management Services dated
October 23, 1990, by and between CCMLP
and ConCap Capital Company (Incorporated
by reference to the Quarterly Report
on Form 10-Q for the quarter ended
September 30, 1990).
10.5 Assignment and Assumption Agreement dated N/A
October 23, 1990, by and between CCMLP
and Metro ConCap, Inc. (300 Series of
Property Management Contracts)
(Incorporated by reference to the
Quarterly Report on Form 10-Q for
the quarter ended September 30, 1990).
S-K REFERENCE SEQUENTIAL
NUMBER DOCUMENT DESCRIPTION PAGE NUMBER
10.6 Construction Management Cost Reimbursement N/A
Agreement dated January 1, 1991, by and
between the Partnership and Metro ConCap,
Inc. (Incorporated by reference to the
Annual Report on Form 10-K for the year
ended December 31, 1991).
10.9 Construction Management Cost Reimbursement N/A
Agreement dated January 1, 1991, by and
between the Partnership and The Hayman
Company. (Incorporated by reference to
the Annual Report on Form 10-K for the
year ended December 31, 1991).
10.10 Investor Services Agreement dated October N/A
23, 1990, by and between the Partnership
and CCEC (Incorporated by reference to
the Quarterly Report on Form 10-Q for
the quarter ended September 30, 1990).
10.11 Assignment and Assumption Agreement N/A
(Investor Services Agreement) dated
October 23, 1990, by and between CCEC
and ConCap Services Company (Incorporated
by reference to the Annual Report on
Form 10-K for the year ended December
31, 1990).
10.12 Letter of Notice dated December 20, N/A
1991, from Partnership Services, Inc.
("PSI") to the Partnership regarding
the change in ownership and dissolution
of ConCap Services Company whereby PSI
assumed the Investor Services Agreement.
(Incorporated by reference to the Annual
Report on Form 10-K for the year ended
December 31, 1991).
10.13 Financial Services Agreement dated October N/A
23, 1990, by and between the Partnership
and CCEC (Incorporated by reference to
the Quarterly Report on Form 10-Q for
the quarter ended September 30, 1990).
10.14 Assignment and Assumption Agreement N/A
(Financial Services Agreement) dated
October 23, 1990, by and between CCEC and
ConCap Capital Company (Incorporated
by reference to the Quarterly Report
on Form 10-Q for the quarter ended
September 30, 1990).
S-K REFERENCE SEQUENTIAL
NUMBER DOCUMENT DESCRIPTION PAGE NUMBER
10.15 Letter of Notice dated December 20, N/A
1991, from PSI to the Partnership
regarding the change in ownership
and dissolution of ConCap Capital
Company whereby PSI assumed the
Financial Services Agreement.
(Incorporated by reference to the
Annual Report on Form 10-K for the year
ended December 31, 1991).
10.16 Property Management Agreement No. 518 N/A
dated June 1, 1993, by and between the
Partnership and Coventry Management, Inc.
10.17 Assignment and Assumption Agreement N/A
(Financial Services Agreement) dated
October 23, 1990, by and between CCEC and
ConCap Capital Company (Incorporated
by reference to the Quarterly Report
on Form 10-Q for the quarter ended
September 30, 1990).
10.18 Letter dated December 8, 1994 reporting a N/A
change in control of the General partner of
the Registrant. (Incorporated by reference
to Form 8-K dated December 8, 1994).
11 Statement regarding computation of 19
Net Income per Unit of Depositary
Receipt (Incorporated by reference to
Note 5 of Item 8 - Financial State-
ments of this Form 10-K)
16 Letter, Dated August 12, 1992, from N/A
Ernst & Young to the Securities and
Exchange Commission regarding change
in certifying accountant. (Incorporated
by reference to Form 8-K dated August 6,
1992)
16.1 Letter dated May 3, 1995, from Arthur N/A
Anderson to the Securities and Exchange
Commission regarding change in Certifying
Accountant. (Incorporated by reference
to Form 8-K dated May 3, 1995).
27 Financial Data Schedule is filed as an
Exhibit to this report.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Multi
Benefit Realty Fund '87-1 1995 Year-End 10-KSB and is qualified in its entirety
by reference to such 10-KSB filing.
</LEGEND>
<CIK> 0000802200
<NAME> MULTI BENEFIT REALTY FUND '87-1
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 1,234
<SECURITIES> 305
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 23,073
<DEPRECIATION> 9,020
<TOTAL-ASSETS> 16,334
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 11,331
0
0
<COMMON> 0
<OTHER-SE> 3,889
<TOTAL-LIABILITY-AND-EQUITY> 16,334
<SALES> 0
<TOTAL-REVENUES> 4,631
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,843
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,056
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 383
<EPS-PRIMARY> 2.21
<EPS-DILUTED> 0
<FN>
<F1>The Registrant has an unclassified balance sheet.
</FN>
</TABLE>
