<PAGE>
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission file number 0-16848
Southeastern Income Properties Limited Partnership
--------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Virginia 54-1350850
-------------------------------- --------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
Five Cambridge Center, Boston, MA 02142-1493
---------------------------------------------- -----------------------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (617) 234-3000
Indicate by check mark whether Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
----- -----
1 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
PART 1 - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements.
Consolidated Balance Sheets (Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
------------ ------------
<S> <C> <C>
Assets
Real Estate, at cost:
Land $ 1,398,951 $ 1,817,096
Buildings and building improvements 12,488,141 18,892,819
Personal property 3,333,686 4,463,982
------------ ------------
17,220,778 25,173,897
Less: Accumulated depreciation 8,800,442 11,953,423
------------ ------------
8,420,336 13,220,474
Other Assets:
Cash and cash equivalents 2,103,510 1,171,707
Tenant security deposits 71,427 126,575
Mortgage escrow deposits 45,683 32,400
Reserve for replacements 278,663 396,439
Deferred loan costs, net of accumulated amortization
of $13,741 (1998) and $12,089 (1997) 113,483 272,102
Other assets 140,221 288,020
------------ ------------
Total Assets $ 11,173,323 $ 15,507,717
============ ============
Liabilities and Partners' Capital
Liabilities:
Mortgage notes payable $ 2,715,515 $ 8,470,142
Prepaid rent 8,951 16,841
Accrued interest payable 17,435 58,424
Tenant security deposits payable 68,323 133,763
Accounts payable and accrued expenses 238,225 134,924
------------ ------------
Total Liabilities 3,048,449 8,814,094
------------ ------------
Partners' Capital:
General partner's deficit (18,523) (36,343)
Special limited partner's deficit (217,795) (464,270)
Limited partner unit holders' equity-
50,000 units authorized and outstanding 8,361,192 7,194,236
------------ ------------
Total Partners' Capital 8,124,874 6,693,623
------------ ------------
Total Liabilities and Partners' Capital $ 11,173,323 $ 15,507,717
============ ============
See notes to consolidated financial statements.
2 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
Consolidated Statements of Operations (Unaudited)
</TABLE>
<TABLE>
<CAPTION>
For The Nine Months Ended
September 30, September 30,
1998 1997
----------- -----------
<S> <C> <C>
Revenues:
Rental $ 3,055,511 $ 3,101,496
Interest income 17,638 9,037
Other income 198,461 259,964
Gain on sale of property 1,683,541 --
----------- -----------
Total revenue 4,955,151 3,370,497
----------- -----------
Expenses:
Leasing 71,799 93,532
General and administrative 263,606 288,252
Management fees 195,466 196,556
Utilities 312,337 315,330
Repairs and maintenance 597,222 661,085
Insurance 143,556 132,439
Taxes 246,450 258,348
----------- -----------
Total operating expenses 1,830,436 1,945,542
Other Expenses:
Partnership expense 72,013 85,380
Interest expense 479,249 512,765
Depreciation and amortization 571,738 680,055
----------- -----------
Total expenses 2,953,436 3,223,742
----------- -----------
Income before extraordinary loss 2,001,715 146,755
Extraordinary loss on extinguishment of debt (205,970) --
----------- -----------
Net income $ 1,795,745 $ 146,755
=========== ===========
Net income allocated:
General Partner $ 17,957 $ 1,468
=========== ===========
Special Limited Partner $ 251,404 $ 20,546
=========== ===========
Limited Partners $ 1,526,384 $ 124,741
=========== ===========
Net income allocated per limited partner unit:
Income before extraordinary loss $ 34.03 $ 2.50
Extraordinary loss on extinguishment of debt (3.50) --
----------- -----------
Net income $ 30.53 $ 2.50
=========== ===========
Distributions per unit:
Limited Partners $ 7.19 $ --
=========== ===========
</TABLE>
See notes to consolidated financial statements.
3 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
Consolidated Statements of Operations (Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended
September 30, September 30,
1998 1997
----------- -----------
<S> <C> <C>
Revenues:
Rental $ 941,440 $ 1,065,676
Interest income 6,937 7,417
Other income 72,316 104,755
Gain on sale of property 1,683,541 --
----------- -----------
Total revenue 2,704,234 1,177,848
----------- -----------
Expenses:
Leasing 24,208 30,710
General and administrative 94,565 120,892
Management fees 66,660 61,466
Utilities 98,822 95,725
Repairs and maintenance 215,646 229,094
Insurance 60,135 58,099
Taxes 75,269 105,050
----------- -----------
Total operating expenses 635,305 701,036
Other Expenses:
Partnership expense 10,185 176
Interest expense 126,047 129,440
Depreciation and amortization 169,738 246,724
----------- -----------
Total expenses 941,275 1,077,376
----------- -----------
Income before extraordinary loss 1,762,959 100,472
Extraordinary loss on extinguishment of debt (205,970) --
----------- -----------
Net income $ 1,556,989 $ 100,472
=========== ===========
Net income allocated:
General Partner $ 15,570 $ 1,005
=========== ===========
Special Limited Partner $ 217,978 $ 14,066
=========== ===========
Limited Partners $ 1,323,441 $ 85,401
=========== ===========
Net income allocated per limited partner unit:
Income before extraordinary loss $ 29.97 $ 1.71
Extraordinary loss on extinguishment of debt (3.50) --
----------- -----------
Net income $ 26.47 $ 1.71
=========== ===========
</TABLE>
See notes to consolidated financial statements.
4 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
Consolidated Statement of Partners' Capital (Unaudited)
<TABLE>
<CAPTION>
Units of Special
Limited General Limited Limited
Partnership Partner's Partner's Partners' Total
Interest Deficit Deficit Capital Capital
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Balance - January 1, 1998 50,000 $ (36,343) $ (464,270) $ 7,194,236 $ 6,693,623
Distributions -- (137) (4,929) (359,428) (364,494)
Net income -- 17,957 251,404 1,526,384 1,795,745
----------- ----------- ----------- ----------- -----------
Balance - September 30, 1998 50,000 $ (18,523) $ (217,795) $ 8,361,192 $ 8,124,874
=========== =========== =========== =========== ===========
</TABLE>
See notes to consolidated financial statements.
5 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
Consolidated Statements of Cash Flows (Unaudited)
<TABLE>
<CAPTION>
For The Nine Months Ended
September 30, September 30,
1998 1997
----------- -----------
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $ 1,795,745 $ 146,755
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 562,238 665,393
Amortization 9,500 14,662
Gain on sale of property (1,683,541) --
Extraordinary loss on extinguishment of debt 205,970 --
Changes in assets and liabilities:
Tenant security deposits 13,234 (20,703)
Mortgage escrow deposits (13,283) (47,094)
Other assets 137,383 (77,385)
Prepaid rent (7,890) --
Accrued interest payable (40,989) 49,729
Tenant security deposits payable (65,440) 23,810
Accounts payable and accrued expenses 103,301 (30,284)
----------- -----------
Net cash provided by operating activities 1,016,228 724,883
----------- -----------
Cash Flows From Investing Activities:
Net proceeds from sale of property 715,038 --
Additions to buildings and improvements (304,764) (319,178)
Changes in replacement reserves (60,668) 65,689
----------- -----------
Net cash provided by (used in) investing activities 349,606 (253,489)
----------- -----------
Cash Flows From Financing Activities:
Principal payments on mortgage notes (69,537) (30,090)
Satisfaction of mortgage notes payable -- (7,986,299)
Cash distributions paid to partners (364,494) --
Payment of deferred loan costs -- (284,191)
Proceeds from mortgage notes payable -- 8,500,000
----------- -----------
Net cash (used in) provided by financing activities (434,031) 199,420
----------- -----------
Net increase in cash and cash equivalents 931,803 670,814
Cash and cash equivalents, beginning of period 1,171,707 384,491
----------- -----------
Cash and cash equivalents, end of period $ 2,103,510 $ 1,055,305
=========== ===========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 520,238 $ 471,490
=========== ===========
Supplemental Disclosure of Non-Cash Investing and
Financing Activities:
Mortgage notes payable assumed by purchaser of
Forestbrook Apartments - see note 3 $ 5,685,090 $ --
=========== ===========
</TABLE>
See notes to consolidated financial statements.
6 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. General
The consolidated financial statements included herein have been
prepared by Southeastern Income Properties Limited Partnership (the
"Partnership"), without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. The
Partnership's accounting and financial reporting policies are in
conformity with generally accepted accounting principles and
include adjustments in interim periods considered necessary for a
fair presentation of the results of operations. All adjustments are
of a normal recurring nature except as discussed in Note 3. Certain
information and footnote disclosures normally included in
consolidated financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations. It is suggested
that these consolidated financial statements be read in conjunction
with the consolidated financial statements and notes thereto
included in the Partnership's Annual Report on Form 10-KSB. Certain
amounts have been reclassified to conform to the September 30, 1998
presentation.
The accompanying consolidated financial statements reflect the
Partnership's results of operations for an interim period and are
not necessarily indicative of the results of operations for the
year ending December 31, 1998.
2. Taxable Income
The Partnership's results of operations on a tax basis are expected
to differ from net income for financial reporting purposes
primarily due to the accounting differences in the recognition of
depreciation and amortization.
3. Gain on Sale of Property and Extraordinary Loss on Extinguishment
of Debt
On September 1, 1998 the Partnership sold its Forestbrook
Apartments property to an unaffiliated third party for a purchase
price of $6,550,000. The purchaser of the property assumed the
outstanding debt on the property of $5,685,090. After closing costs
and adjustments of $149,872, the Partnership received net proceeds
of $715,038. An extraordinary loss on extinguishment of debt of
$205,970, representing the write off of the unamortized loan costs
related to the mortgage note payable and a disposition fee, has
been recorded for the nine months ended September 30, 1998. For
financial reporting purposes, the sale resulted in a gain of
approximately $1,684,000.
4. Related Party Transactions
Asset management fees paid or accrued by the Partnership to
affiliates of the General Partner, totaled $26,080 and $31,255
during the nine months ended September 30, 1998 and 1997,
respectively, and is included in management fees.
5. Distribution
In May 1998, the Partnership distributed $364,494.
7 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
6. Pro Forma Financial Information
The following pro forma consolidated condensed statements of
operations for the nine months ended September 30, 1998 and 1997,
gives effect to the sale of the Forestbrook Apartments property.
The adjustments to the pro forma condensed statements of operations
assume the transaction was completed at the beginning of the period
presented. The sale occurred on September 1, 1998.
These proforma adjustments are not necessarily reflective of the
results that actually would have occurred if the sale had been in
effect, as of, and for the period presented or what may be achieved
in the future.
Pro Forma Consolidated Condensed Statement of Operations
For the nine months ended September 30, 1998
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments Pro Forma
----------- ----------- -----------
<S> <C> <C> <C>
Revenue:
Rental $ 3,055,511 $ (954,754) $ 2,100,757
Interest 17,638 (612) 17,026
Other 198,461 (65,651) 132,810
Gain on sale of property 1,683,541 (1,683,541) --
----------- ----------- -----------
Total revenue 4,955,151 (2,704,558) 2,250,593
----------- ----------- -----------
Expenses:
Operating expenses 1,902,449 (559,138) 1,343,311
Interest expense 479,249 (319,541) 159,708
Depreciation and amortization 571,738 (174,488) 397,250
----------- ----------- -----------
Total expenses 2,953,436 (1,053,167) 1,900,269
----------- ----------- -----------
Income before extraordinary loss 2,001,715 (1,651,391) 350,324
Extraordinary loss on
extinguishment of debt (205,970) 205,970 --
----------- ----------- -----------
Net income $ 1,795,745 $(1,445,421) $ 350,324
=========== =========== ===========
Net income allocated:
General Partner $ 17,957 $ (14,454) $ 3,503
=========== =========== ===========
Special Limited Partner $ 251,404 $ (202,359) $ 49,045
=========== =========== ===========
Limited Partners $ 1,526,384 $(1,228,608) $ 297,776
=========== =========== ===========
Net income allocated per partner unit:
limited partner unit:
Income before extraordinary
loss $ 34.03 $ (28.07) $ 5.96
Extraordinary loss on
extinguishment of debt (3.50) 3.50 --
----------- ----------- -----------
Net income $ 30.53 $ (24.57) $ 5.96
=========== =========== ===========
</TABLE>
8 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
6. Pro Forma Financial Information (Continued)
For the nine months ended September 30, 1997
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments Pro Forma
----------- ----------- -----------
<S> <C> <C> <C>
Revenue:
Rental $ 3,101,496 $(1,024,478) $ 2,077,018
Interest 9,037 (566) 8,471
Other 259,964 (82,913) 177,051
----------- ----------- -----------
Total revenue 3,370,497 (1,107,957) 2,262,540
----------- ----------- -----------
Expenses:
Operating expenses 2,030,922 (524,260) 1,506,662
Interest expense 512,765 (346,656) 166,109
Depreciation and amortization 680,055 (212,660) 467,395
----------- ----------- -----------
Total expenses 3,223,742 (1,083,576) 2,140,166
----------- ----------- -----------
Net income $ 146,755 $ (24,381) $ 122,374
=========== =========== ===========
Net income allocated:
General Partner $ 1,468 $ (244) $ 1,224
=========== =========== ===========
Special Limited Partner $ 20,546 $ (3,413) $ 17,133
=========== =========== ===========
Limited Partners $ 124,741 $ (20,724) $ 104,017
=========== =========== ===========
Net income allocated per limited
partner unit:
Net income $ 2.50 $ (0.42) $ 2.08
=========== =========== ===========
</TABLE>
9 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
Item 2. Management's Discussion and Analysis or Plan of Operation
Liquidity and Capital Resources
The matters discussed in this Form 10-QSB contain certain
forward-looking statements and involve risks and uncertainties
(including changing market conditions, competitive and regulatory
matters, etc.). The discussion of the Partnership's business and
results of operations, including forward-looking statements
pertaining to such matters, does not take into account the effects
of any changes to the Partnership's business and results of
operations. Accordingly, actual results could differ materially
from those projected in the forward-looking statements as a result
of a number of factors, including those identified herein.
The Partnership receives rental income from its properties and is
responsible for operating expenses, administrative expenses,
capital improvements and debt service payments. The Partnership's
remaining properties, which are residential apartment complexes
located in Virginia, North Carolina and South Carolina, are leased
to tenants who are subject to leases of up to one year.
During the nine months ended September 30, 1998, rental revenue and
other income from the properties, along with interest income from
the Partnership's short-term investments, was sufficient to cover
all operating expenses and debt service of the properties and all
administrative expenses of the Partnership, as well as all capital
improvements made to the properties during the period. As of
September 30, 1998, the Partnership's unrestricted cash balance had
increased to $2,103,510 from $1,171,707 at the end of 1997. The
increase was due to $1,016,228 of cash provided by operating
activities and $349,606 of cash provided by investing activities,
which were partially offset by $434,031 used for cash distributions
and mortgage principal reductions.
Net cash provided by operating activities increased primarily due
to the improved net income of the properties. All other increases
(decreases) in certain operating assets and liabilities are the
result of the timing of receipt and payment of various activities.
Net cash provided by investing activities consisted of $715,038 in
net proceeds from the sale of the Partnership's Forestbrook
Apartments property ("Forestbrook") which was partially offset by
$304,764 in improvements to real estate as well as funding
replacement reserves in the amount of $60,668.
In May 1998, the Partnership distributed $364,494 from operations.
It is expected that future rental revenue and other income from the
Partnership's properties will continue to be sufficient to cover
all administrative expenses of the Partnership and all operating
expenses and debt service of the properties. The Partnership
intends to continue to limit cash distributions to fund capital
improvements. The performance of the Partnership's properties and
its distributions policy, however, will continue to be reviewed on
a quarterly basis.
The Partnership is in the process of reviewing the status of all
the properties with a view towards disposing all of its properties,
depending on property operations and market conditions. In this
regard, the Partnership sold its Forestbrook Apartments property on
September 1, 1998 and the
10 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
Item 2. Management's Discussion and Analysis or Plan of Operation (Continued)
Liquidity and Capital Resources (Continued)
Partnership's Seasons Chase property and Pelham Ridge property are
currently under contract for sale. The Partnership sold its
Forestbrook Apartments property to an unaffiliated third party for
a purchase price of $6,550,000. The purchaser of the property
assumed the outstanding debt on the property of $5,685,090. After
closing costs and adjustments of $149,872, the Partnership received
net proceeds of $715,038. An extraordinary loss on extinguishment
of debt of $205,970, representing the write off of the unamortized
loan costs related to the mortgage note payable and a disposition
fee, has been recorded for the nine months ended September 30,
1998. For financial reporting purposes, the sale resulted in a gain
of approximately $1,684,000.
With respect to the pending sale of Season's Chase and Pelham
Ridge, it is expected that the closing of these sales will occur in
November 1998. The anticipated net sales proceeds from these sales
are expected to be approximately $8,100,000. There can be no
assurance, however, that these sales will be consummated, or if
consummated, at the current contract terms.
The Partnership has invested, and expects to continue to invest,
available amounts in money market instruments until required for
Partnership purposes. In addition, the Partnership has replacement
reserves of $278,663 held by the mortgage lenders for the
Sterlingwood Apartments. These funds are restricted under the terms
of the mortgage loan for this property. The Partnership's total
cash balance, both restricted and unrestricted, as of September 30,
1998, was therefore $2,382,173, which is expected to be sufficient
to satisfy working capital requirements set forth in the
partnership agreement. The partnership agreement requires the
Partnership to retain reserves in an amount equal to at least 1% of
capital contributions of unit holders.
The Partnership is dependent upon the General Partner and the
managing agent for management and administrative services. The
General Partner and the managing agent have completed assessments
and believe that their computer systems will function properly with
respect to dates in the year 2000 and thereafter (the "Year 2000
Issue"). Accordingly, it is not expected that the Partnership will
incur any material costs associated with, or be materially affected
by, the Year 2000 Issue.
Results of Operations
The Partnership generated net income of $1,795,745 for the nine
months ended September 30, 1998, as compared to net income of
$146,755 for the nine months ended September 30, 1997. Net income
for the nine months ended September 30, 1998 increased primarily
due to the $1,683,541 gain on the sale of the Forestbrook property.
11 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
Item 2. Management's Discussion and Analysis or Plan of Operation (Continued)
Results of Operations (Continued)
Rental revenue decreased for the nine months ended September 30,
1998 to $3,055,511 from $3,101,496 in 1997 primarily as a result of
the sale of Forestbrook. With respect to the remaining properties,
rental revenues increased by approximately $24,000 due to higher
average rents and higher average occupancy. Overall, average rents
for the Partnership's remaining properties increased by 1.7%, to
$477 per month in 1998 from $469 per month in 1997, while average
occupancy increased from 92% in 1997 to 94% in 1998. Interest
income increased due to higher average cash balances available for
investment. Other income decreased in 1998 compared to 1997 due to
decreases in lease termination fees, forfeited deposits and late
fees as a result of a more stabilized tenant population.
The Partnership's operating expenses decreased for the nine months
ended September 30, 1998 to $1,830,436 from $1,945,542 in 1997.
With respect to the remaining properties, operating expenses
decreased in 1998 to $1,264,680 from $1,421,129 due primarily to
decreases in repairs and maintenance expenditures and depreciation
expense, while the remaining operating expenses remained relatively
stable. Depreciation expense declined due to assets becoming fully
depreciated. Other expenses reflect savings in all categories.
Savings in partnership expense resulted from reduced professional
fees. An extraordinary loss on extinguishment of debt of $205,970,
representing the write off of the unamortized loan costs related to
the mortgage note payable and a disposition fee, has been recorded
for the nine months ended September 30, 1998.
12 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
27. Financial Data Schedule
(b) Reports of Form 8-K:
No report on Form 8-K was filed during the period.
13 of 14
<PAGE>
SOUTHEASTERN INCOME PROPERTIES LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SOUTHEASTERN INCOME PROPERTIES
LIMITED PARTNERSHIP
By: Winthrop Southeastern Limited Partnership
Its General Partner
By: Eight Winthrop Properties, Inc.,
Its General Partner
By: /s/ Michael L. Ashner
---------------------
Michael L. Ashner
Chief Executive Officer
By: /s/ Edward V. Williams
----------------------
Edward V. Williams
Chief Financial Officer
Dated: November 19, 1998
14 of 14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from
Southeastern Income Properties Limited Partnership and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 2,382,173 <F1>
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 17,220,778
<DEPRECIATION> (8,800,442)
<TOTAL-ASSETS> 11,173,323
<CURRENT-LIABILITIES> 0
<BONDS> 2,715,515
<COMMON> 0
0
0
<OTHER-SE> 8,124,874
<TOTAL-LIABILITY-AND-EQUITY> 11,173,323
<SALES> 0
<TOTAL-REVENUES> 4,955,151 <F2>
<CGS> 0
<TOTAL-COSTS> 2,402,174
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 479,249
<INCOME-PRETAX> 2,001,715
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,001,715
<DISCONTINUED> 0
<EXTRAORDINARY> (205,970)
<CHANGES> 0
<NET-INCOME> 1,795,745
<EPS-PRIMARY> 30.53
<EPS-DILUTED> 30.53
<FN>
<F1>
Cash includes $278,663 of restricted cash.
<F2>
Revenues include gain on sale of property of $1,683,541.
</FN>
</TABLE>
