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) July 16, 1997
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MID-ATLANTIC CENTERS LIMITED PARTNERSHIP
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(Exact name of registrant as specified in its partnership
agreement)
MARYLAND 0-16285 52-1490861
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(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
111 South Calvert Street - Baltimore, MD 21203-1476
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (410)539-0000
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Not Applicable
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(Former name or former address, if changed since last report)
<PAGE> 2
ITEM 2. DISPOSITION OF ASSETS
On July 16, 1997, Mid-Atlantic Centers Limited Partnership (the
"Partnership") sold Jackson Heights Shopping Center, a 155,878 square
foot shopping center in Murfreesboro, Tennessee to an unrelated third
party, a local real estate investor, for a contract price of
$4,800,000. For financial reporting purposes, a gain, after
approximately $209,000 in transaction expenses, of approximately
$180,000 was recorded in July 1997. The net proceeds from the sale,
after payoff of the related mortgage debt and transaction expenses,
were approximately $2,579,000. The appraised net equity of Jackson
Heights included in the appraised value of the Partnership's portfolio
at the end of 1996 was approximately $2,670,000.
On May 28, 1997, the Partnership sold Cloister Shopping Center, a
53,610 square foot shopping center in Ephrata, Pennsylvania to an
unrelated third party, a local real estate investor, for a contract
price of $2,650,000. For financial reporting purposes, a gain, after
approximately $157,000 in transaction expenses, of approximately
$129,000 was recorded in May 1997. The net proceeds from the sale,
after payoff of the related mortgage debt and transaction expenses,
were approximately $1,119,000. The appraised net equity of Cloister
included in the appraised value of the Partnership's portfolio at the
end of 1996 was approximately $1,106,000.
Pro forma financial information of the Partnership reflecting the
foregoing transactions is attached hereto as indicated in Item 7.
ITEM 7. Financial Statements, Pro Forma Financial Information and
Exhibits
The following pro forma condensed financial statements assume the sale
of two of the Partnership's properties, Jackson Heights Shopping
Center and Cloister Shopping Center (the "Sales"). The pro forma
condensed financial statements are based on and should be read in
conjunction with the historical financial statements of the
Partnership for the quarter ended March 31, 1997 and the year ended
December 31, 1996.
The following pro forma condensed balance sheet as of March 31, 1997
assumes the Sales occurred on March 31, 1997. The following pro forma
condensed statements of operations for the quarter ended March 31,
1997 and the year ended December 31, 1996 assume the Sales occurred on
January 1, 1997 and 1996, respectively. The following pro forma
condensed financial statements are presented for illustrative purposes
only and are not necessarily indicative of the operating results or
financial position that would have occurred if the Sales had been
consummated on the dates indicated, nor is it indicative of future
operating results or financial position.
<PAGE> 3
<TABLE>
Pro Forma Condensed Balance Sheet
March 31, 1997
<CAPTION>
Pro Forma
Adjustments Pro Forma
Related to Adjustments Total
Jackson Related to Pro Forma Adjusted
Historical Heights Cloister Adjustments Historical
----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in real estate
held for lease, at cost:
Land $ 8,726,758 $(1,003,743) $ (269,954) $(1,273,697) $ 7,453,061
Buildings and improvements 42,659,898 (4,810,373) (2,946,133) (7,756,506) 34,903,392
----------- ----------- ---------- ----------- -----------
51,386,656 (5,814,116) (3,216,087) (9,030,203) 42,356,453
Less: accumulated
depreciation (17,280,534) 1,381,787 830,961 2,212,748 (15,067,786)
----------- ----------- ---------- ----------- -----------
34,106,122 (4,432,329) (2,385,126) (6,817,455) 27,288,667
Cash 2,918,739 2,611,947 1,133,606 3,745,553 6,664,292
Tenant accounts receivable,
net of allowance for
doubtful accounts 775,487 (42,238) (32,061) (74,299) 701,188
Escrows 940,916 - (26,380) (26,380) 914,536
Prepaid expenses and other
assets 165,307 (12,958) (20,394) (33,352) 131,955
Intangible assets, net of
accumulated amortization 287,012 (14,714) (1,894) (16,608) 270,404
----------- ----------- ----------- ----------- -----------
Total assets $39,193,583 $(1,890,292) $(1,332,249) $(3,222,541) $35,971,042
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' EQUITY:
Long-term debt, including
current maturities $27,649,075 $(1,962,868) $(1,431,567) $(3,394,435) $24,254,640
Interest payable 1,206,191 (18,569) (11,939) (30,508) 1,175,683
Cash flow protector loans 789,203 - - - 789,203
Accounts payable and
accrued expenses 133,593 (25,034) (3,898) (28,932) 104,661
Prepaid rents and security
deposits 199,530 (43,930) (13,997) (57,927) 141,603
Due to related parties 127,420 (19,447) 555 (18,892) 108,528
----------- ----------- ----------- ----------- -----------
Total liabilities 30,105,012 (2,069,848) (1,460,846) (3,530,694) 26,574,318
----------- ----------- ----------- ----------- -----------
Partners' equity 9,088,571 179,556 128,597 308,153 9,396,724
----------- ----------- ----------- ----------- -----------
Total liabilities and
partners' equity $39,193,583 $(1,890,292) $(1,332,249) $(3,222,541) $35,971,042
=========== =========== =========== =========== ===========
</TABLE>
The accompanying Notes are an integral part of these Pro Forma Condensed
Financial Statements.
<PAGE> 4
<TABLE>
Pro Forma Condensed Statement of Operations
For the Quarter Ended March 31, 1997
<CAPTION>
Pro Forma
Adjustments Pro Forma
Related to Adjustments Total
Jackson Related to Pro Forma Adjusted
Historical Heights Cloister Adjustments Historical
------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INCOME:
Rental income $ 1,338,422 $ (194,692) $ (116,315) $ (311,007) $ 1,027,415
Tenant reimbursement
income 264,117 (20,928) (35,677) (56,605) 207,512
------------ ----------- ----------- ----------- -----------
1,602,539 (215,620) (151,992) (367,612) 1,234,927
------------ ----------- ----------- ----------- -----------
OPERATING EXPENSES:
Interest expense 662,044 (51,736) (41,823) (93,559) 568,485
Depreciation and
amortization 373,170 (40,747) (23,789) (64,536) 308,634
Repairs and maintenance 230,941 (24,962) (13,057) (38,019) 192,922
Real estate taxes and
insurance 187,355 (31,103) (18,565) (49,668) 137,687
Management and leasing
to related parties 87,000 (7,200) (7,500) (14,700) 72,300
Other expenses 238,692 (10,687) (27,707) (38,394) 200,298
------------ ----------- ----------- ----------- -----------
Total expenses 1,779,202 (166,435) (132,441) (298,876) 1,480,326
------------ ----------- ----------- ----------- -----------
Results from rental
operations (176,663) (49,185) (19,551) (68,736) (245,399)
OTHER INCOME (LOSS):
Interest income 34,905 - - - 34,905
------------ ----------- ----------- ----------- -----------
Net loss $ (141,758) $ (49,185) $ (19,551) $ (68,736) $ (210,494)
============ =========== =========== =========== ===========
Net loss allocated to
assignee limited partners
per unit: (1,200,000 units
issued and outstanding) $ (0.12) $ (0.04) $ (0.02) $ (0.06) $ (0.18)
======= ======= ======== ======= ========
</TABLE>
The accompanying Notes are an integral part of these Pro Forma Condensed
Financial Statements.
<PAGE> 5
<TABLE>
Pro Forma Condensed Statement of Operations
For the Year Ended December 31, 1996
<CAPTION>
Pro Forma
Adjustments Pro Forma
Related to Adjustments Total
Jackson Related to Pro Forma Adjusted
Historical Heights Cloister Adjustments Historical
------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INCOME:
Rental income $ 5,404,431 $ (744,375) $ (408,886) $(1,153,261) $ 4,251,170
Tenant reimbursement
income 1,072,243 (78,167) (130,236) (208,403) 863,840
------------ ----------- ----------- ----------- -----------
6,476,674 (822,542) (539,122) (1,361,664) 5,115,010
------------ ----------- ----------- ----------- -----------
OPERATING EXPENSES:
Write-down of assets 2,895,000 - - - 2,895,000
Interest expense 2,759,025 (213,405) (145,265) (358,670) 2,400,355
Depreciation and
amortization 1,494,716 (162,201) (94,958) (257,159) 1,237,557
Repairs and maintenance 920,829 (75,143) (55,768) (130,911) 789,918
Real estate taxes and
insurance 756,028 (127,485) (74,174) (201,659) 554,369
Management and leasing
to related parties 386,327 (48,247) (29,445) (77,692) 308,635
Provision for doubtful
accounts 73,599 (3,328) (179) (3,507) 70,092
Other expenses 691,931 (28,357) (78,204) (106,561) 585,370
------------ ----------- ----------- ----------- -----------
Total expenses 9,977,455 (658,166) (477,993) (1,136,159) 8,841,296
------------ ----------- ----------- ----------- -----------
Results from rental
operations (3,500,781) (164,376) (61,129) (225,505) (3,726,286)
OTHER INCOME (LOSS):
Gain on sale of pad sites 241,290 (22,208) - (22,208) 219,082
Loss on sale of shopping
center (78,687) - - - (78,687)
Interest income 112,710 - - - 112,710
------------ ----------- ----------- ----------- -----------
Net loss $ (3,225,468) $ (186,584) $ (61,129) $ (247,713) $(3,473,181)
============ =========== =========== =========== ===========
Net loss allocated to
assignee limited partners
per unit: (1,200,000 units
issued and outstanding) $ (2.71) $ (0.15) $ (0.05) $ (0.20) $ (2.91)
======= ======= ======== ======= ========
</TABLE>
The accompanying Notes are an integral part of these Pro Forma Condensed
Financial Statements.
<PAGE> 6
Notes to Pro Forma Condensed
Financial Information
Note 1 - Balance Sheet
Sale of Shopping Centers
Reflects sale of Jackson Heights Shopping Center and Cloister Shopping
Center. The amount added to cash of $3,745,553 in the Pro Forma
Condensed Balance Sheet differs from approximately $3,698,000 in cash
actually received at the closing of the sale of the two properties as
a result of closing adjustments, the assumed payment of accounts
payable and accrued expenses and related party payables and the
assumed reimbursement of prepaid insurance expense.
The Partnership retained the tenant accounts receivables related to
the two shopping centers sold and reversed the accrual of receivables
related to the recording of rental income on a straight-line basis
in accordance with generally accepted accounting principles.
The amount added to partners' equity reflects the net gain on sale of
shopping centers.
Note 2 - Statements of Operations
Gain on Sale of Shopping Centers
A net gain of $308,153 on the pro forma sale of the two shopping
centers on January 1, 1997 and 1996, respectively, has not been
included in the accompanying Pro Forma Condensed Statements of
Operations for the quarter ended March 31, 1997 and the year ended
December 31, 1996, respectively.
<PAGE> 7
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.
MID-ATLANTIC CENTERS LIMITED PARTNERSHIP
By: Realty Capital IV Limited Partnership
General Partner
By: LMRC IV, Inc., General Partner
Date: July 30, 1997 By: /s/ Richard J. Himelfarb
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Richard J. Himelfarb, President
By: FW Realty Limited Partnership,
General Partner
By: FW Corporation, General Partner
Date: July 30, 1997 By: /s/ William J. Wolfe
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William J. Wolfe, President
