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) August 22, 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 8, 1997, Mid-Atlantic Centers Limited Partnership (the
"Partnership") entered into an agreement to sell Berkeley Square
Shopping Center, a 101,858 square foot shopping center in Goose Creek,
South Carolina to an unrelated third party, a regional real estate
company, for a contract price of $2,975,000. The contract was subject
to various contingencies until August 22, 1997 when the contract
purchaser's deposit of $100,000 became subject to risk of forfeiture.
The transaction is now scheduled to close on September 10, 1997. For
financial reporting purposes, the Partnership estimates that a net
loss of approximately $23,000 will be recorded at the time of closing.
The net proceeds from the sale, after payoff of the related mortgage
debt and transaction expenses, are expected to be approximately
$1,500,000. Actual net proceeds could differ from this estimate as a
result of differences between actual and estimated transaction
expenses, adjustment of prepaid expenses and accrued liabilities and
refund of lender escrows. The appraised net equity of Berkeley Square
included in the appraised value of the Partnership's portfolio at the
end of 1996 was approximately $1,615,000.
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 give effect to
the sale of three of the Partnership's properties, Berkeley Square
Shopping Center, Jackson Heights Shopping Center (which occurred on
July 16, 1997) and Cloister Shopping Center (which occurred on May 28,
1997) (the "Sales") as described below. 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
six months ended June 30, 1997 and the year ended December 31, 1996.
The following pro forma condensed balance sheet as of June 30, 1997
assumes the sales of Berkeley Square and Jackson Heights had occurred
on June 30, 1997. The sale of Cloister on May 28, 1997 is reflected
in the historical balance sheet. The following pro forma condensed
statements of operations for the six months ended June 30, 1997 and
the year ended December 31, 1996 assume the Sales all 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
June 30, 1997
(Unaudited)
<CAPTION>
Pro Forma Pro Forma
Adjustments Adjustments
Related to Related to Total
Jackson Berkeley Pro Forma Adjusted
Historical Heights Square Adjustments Historical
----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in real estate
held for lease, at cost:
Land $ 8,456,804 $(1,003,743) $ (689,380) $(1,693,123) $ 6,763,681
Buildings and improvements 39,211,365 (4,834,153) (3,665,690) (8,499,843) 30,711,522
----------- ----------- ---------- ----------- -----------
47,668,169 (5,837,896) (4,355,070) (10,192,966) 37,475,203
Less: accumulated
depreciation (16,767,291) 1,420,208 1,508,069 2,928,277 (13,839,014)
----------- ----------- ---------- ----------- -----------
30,900,878 (4,417,688) (2,847,001) (7,264,689) 23,636,189
Cash 1,923,578 2,562,506 1,531,154 4,093,660 6,017,238
Tenant accounts receivable,
net of allowance for
doubtful accounts 666,209 (41,812) (19,238) (61,050) 605,159
Escrows 1,022,175 - (107,795) (107,795) 914,380
Prepaid expenses and other
assets 105,142 (13,869) (7,052) (20,921) 84,221
Intangible assets, net of
accumulated amortization 258,519 (12,145) - (12,145) 246,374
----------- ----------- ----------- ----------- -----------
Total assets $34,876,501 $(1,923,008) $(1,449,932) $(3,372,940) $31,503,561
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' EQUITY:
Long-term debt, including
current maturities $26,081,375 $(1,950,570) $(1,366,414) $(3,316,984) $22,764,391
Interest payable 1,301,951 (18,569) (11,847) (30,416) 1,271,535
Cash flow protector loans 789,203 - - - 789,203
Accounts payable and
accrued expenses 208,167 (50,069) (22,972) (73,041) 135,126
Prepaid rents and security
deposits 196,303 (51,964) (24,944) (76,908) 119,395
Due to related parties 138,993 (31,392) (1,016) (32,408) 106,585
----------- ----------- ----------- ----------- -----------
Total liabilities 28,715,992 (2,102,564) (1,427,193) (3,529,757) 25,186,235
----------- ----------- ----------- ----------- -----------
Partners' equity 6,160,509 179,556 (22,739) 156,817 6,317,326
----------- ----------- ----------- ----------- -----------
Total liabilities and
partners' equity $34,876,501 $(1,923,008) $(1,449,932) $(3,372,940) $31,503,561
=========== =========== =========== =========== ===========
</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 Six Months Ended June 30, 1997
(Unaudited)
<CAPTION>
Pro Forma
Adjustments Pro Forma
Related to Adjustments
Cloister Related to Total
and Jackson Berkeley Pro Forma Adjusted
Historical Heights Square Adjustments Historical
------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INCOME:
Rental income $ 2,615,470 $ (585,994) $ (237,838) $ (823,832) $ 1,791,638
Tenant reimbursement
income 531,933 (95,472) (7,394) (102,866) 429,067
------------ ----------- ----------- ----------- -----------
3,147,403 (681,466) (245,232) (926,698) 2,220,705
------------ ----------- ----------- ----------- -----------
OPERATING EXPENSES:
Interest expense 1,297,932 (160,250) (70,324) (230,574) 1,067,358
Depreciation and
amortization 739,094 (122,062) (58,142) (180,204) 558,890
Write-down of assets 550,000 - (550,000) (550,000) -
Repairs and maintenance 421,267 (58,536) (19,284) (77,820) 343,447
Real estate taxes and
insurance 377,830 (91,485) (31,303) (122,788) 255,042
Management and leasing
to related parties 183,445 (38,845) (14,400) (53,245) 130,200
Provision for doubtful
accounts 33,751 (3,449) (18,129) (21,578) 12,173
Other expenses 409,600 (86,016) (11,105) (97,121) 312,479
------------ ----------- ----------- ----------- -----------
Total expenses 4,012,919 (560,643) (772,687) (1,333,330) 2,679,589
------------ ----------- ----------- ----------- -----------
Results from rental
operations (865,516) (120,823) 527,455 406,632 (458,884)
OTHER INCOME (LOSS):
Gain on sale of
shopping center 128,597 (128,597) - (128,597) -
Interest income 67,099 - - - 67,099
------------ ----------- ----------- ----------- -----------
Net loss $ (669,820) $ (249,420) $ 527,455 $ 278,035 $ (391,785)
============ =========== =========== =========== ===========
Net loss allocated to
assignee limited partners
per unit: (1,200,000 units
issued and outstanding) $ (0.58) $ (0.18) $ 0.44 $ 0.26 $ (0.32)
======= ======= ======== ======= ========
</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
(Unaudited)
<CAPTION>
Pro Forma
Adjustments Pro Forma
Related to Adjustments
Cloister Related to Total
and Jackson Berkeley Pro Forma Adjusted
Historical Heights Square Adjustments Historical
------------ ----------- ----------- ----------- -----------
(Audited)
<S> <C> <C> <C> <C> <C>
INCOME:
Rental income $ 5,404,431 $(1,153,261) $ (504,201) $(1,657,462) $ 3,746,969
Tenant reimbursement
income 1,072,243 (208,403) (16,363) (224,766) 847,477
------------ ----------- ----------- ----------- -----------
6,476,674 (1,361,664) (520,564) (1,882,228) 4,594,446
------------ ----------- ----------- ----------- -----------
OPERATING EXPENSES:
Write-down of assets 2,895,000 - - - 2,895,000
Interest expense 2,759,025 (358,670) (144,185) (502,855) 2,256,170
Depreciation and
amortization 1,494,716 (257,159) (129,434) (386,593) 1,108,123
Repairs and maintenance 920,829 (130,911) (72,795) (203,706) 717,123
Real estate taxes and
insurance 756,028 (201,659) (63,397) (265,056) 490,972
Management and leasing
to related parties 386,327 (77,692) (29,816) (107,508) 278,819
Provision for doubtful
accounts 73,599 (3,507) (7,396) (10,903) 62,696
Other expenses 691,931 (106,561) (11,304) (117,865) 574,066
------------ ----------- ----------- ----------- -----------
Total expenses 9,977,455 (1,136,159) (458,327) (1,594,486) 8,382,969
------------ ----------- ----------- ----------- -----------
Results from rental
operations (3,500,781) (225,505) (62,237) (287,742) (3,788,523)
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) $ (247,713) $ (62,237) $ (309,950) $(3,535,418)
============ =========== =========== =========== ===========
Net loss allocated to
assignee limited partners
per unit: (1,200,000 units
issued and outstanding) $ (2.71) $ (0.20) $ (0.05) $ (0.25) $ (2.96)
======= ======= ======== ======= ========
</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 Berkeley Square Shopping Center and Jackson Heights
Shopping Center. The sale of Cloister on May 28, 1997 is reflected in
the historical balance sheet. The amount added to cash of $4,093,660
in the Pro Forma Condensed Balance Sheet differs from the total of
approximately $4,087,000 in cash actually received at the closing of
the sale of Jackson Heights plus cash estimated to be received at the
closing of the sale of Berkeley Square. This difference is due to
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 three 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 estimated gain
on sale of shopping centers at the closing dates.
Note 2 - Statements of Operations
Net Gain on Sale of Shopping Centers
An estimated net gain of $156,817 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 six months ended June 30, 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: September 8, 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: September 8, 1997 By: /s/ William J. Wolfe
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William J. Wolfe, President
