UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported): March 13, 2000
Commission file number 0-16180
FIRST DEARBORN INCOME PROPERTIES L.P.
(Exact name of registrant as specified in its charter)
Delaware 36-3591517
(State of organization) (IRS Employer Identification No.)
154 West Hubbard Street, Suite 250, Chicago, IL 60610
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 464-0100
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Item 2. Acquistion or Disposition of Assets
On March 13, 2000, Sycamore Mall Associates, an Illinois general partnership
("Sycamore Mall") in which the registrant, First Dearborn Income Properties
L.P. II, (thr "Partnership"), owns a 25% interest, conveyed its sole asset,
Sycamore Mall Shopping Center in Iowa City, Iowa, to Woodmen of the World
Life Insurance Society ("Woodmen"), the property's mortgage lender. This
conveyance was in return for total satisfaction of liabilities in the amount
of $4,741,517.10. In addition, Woodmen payed all closing cost of the
conveyance and reimbursed Sycamore Mall $9,050.14 for expenses it incurred
for surveying and environmental site assesment. The total liability of
$4,741.517.10 is comprised of $4,258,223.52 principal amount, plus accrued
interest and prepayment penalties in the amount of $483,293.58.
This conveyance was negotiated with Woodmen in lieu of threatened
foreclousure. The property has continued to decline in occupancy since
1996 when Sears Roebuck vacated the shopping center. Although many
negotians took place with various potential tenants, no economic transaction
was ever concluded for a major tenat. A new regional mall was opened in the
Iowa City market. This made it very difficult to attract new tenants. As
of December 31, 1999, occupancy was 54%, which did not allow for sufficient
cash flow to cover debt service and operating expenses. Several attempts
were made to sell the property, with the final attempt being an auction.
Sale prices were not obtainable which would be in excess of the mortgage
indebtedness. Therefore, the conveyeance in lieu of foreclosure was
determined to be the best alternative for the investment.
No gain or loss is to be recognized on the transaction since the property
has been adjusted as of December 31, 1999 to reflect the valuation of the
property. No net proceeds were received from the tansaction other than the
$9,050 reimbursement of certain costs.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
FIRST DEARBORN INCOME PROPERTIES L.P.
(Registrant)
By: FDIP, Inc.
(Managing General Partner)
March 24, 2000 By: Robert S. Ross
President
(Principal Executive Officer)
March 24, 2000 By: Bruce H. Block
Vice President
(Principal Financial Officer)
