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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
No. 1
[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For The Fiscal Year Ended December 31, 1995
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Commission file #0-16783
Inland Mortgage Investors Fund, L.P.-II
(Exact name of registrant as specified in its charter)
Delaware 36-3495248
(State of organization) (I.R.S. Employer Identification Number)
2901 Butterfield Road, Oak Brook, Illinois 60521
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: 708-218-8000
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: Name of each exchange on which registered:
None None
Securities registered pursuant to Section 12(g) of the Act:
LIMITED PARTNERSHIP UNITS
(Title of class)
Indicate by check mark whether the 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
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not 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-K or any amendment to
this Form 10-K. [X]
State the aggregate market value of the voting stock held by nonaffiliates of
the registrant. Not applicable.
The Prospectus of the Registrant dated February 10, 1987, as supplemented to
date and filed pursuant to Rule 424(b) and 424(c) under the Securities Act of
1933 is incorporated by reference in Parts I, II and III of this Annual Report
on Form 10-K.
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Item 8. Financial Statements and Supplementary Data
Reports not filed with Form 10-K: financial statements of the underlying
operating properties for each mortgage which exceed 20% of total assets.
INDEX PAGE
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1549-71 Sherman, Evanston, Illinois:
Independent Auditor's Report..................................... 3
Statement of Operating Income and Expenses for the year ended
December 31, 1995.............................................. 4
Notes to Statement of Operating Income and Expenses for the year
ended December 31, 1995........................................ 5
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LOGO
Wolf & Company LLP
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
----------------------------
The Owner and Management
Sherman Avenue Property
1549-71 Sherman
Evanston, Illinois
We have audited the accompanying statement of operating income and expenses of
the SHERMAN AVENUE PROPERTY (1549-71 SHERMAN) for the year ended December 31,
1995. The financial statement is the responsibility of the Property's
management. Our responsibility is to express an opinion on this financial
statement 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 statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statement. 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 statement referred to above presents fairly, in
all material respects, the results of operations of the Sherman Avenue Property
for the year ended December 31, 1995 in conformity with generally accepted
accounting principles.
/s/ Wolf & Company LLP
Oak Brook, Illinois
May 9, 1996
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SHERMAN AVENUE PROPERTY
1549-71 SHERMAN
STATEMENT OF OPERATING INCOME AND EXPENSES
For the Year Ended December 31, 1995
Operating revenues:
Rental income $613,324
Reimbursement of real estate taxes and insurance 1,551
--------
614,875
--------
Operating expenses:
Office expense 2,216
Real estate taxes (Note 4) 129,535
Depreciation 84,368
Management fees (Note 2) 29,827
Leasing commissions 1,505
Utilities 75,135
Cleaning, maintenance and decorating 26,846
Repairs 1,973
Insurance 5,758
Advertising 93
Legal 35
Other operating expenses 1,651
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358,942
--------
Operating income 255,933
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Other income (expense):
Interest expense (Note 3) (267,987)
Other income 6,412
Amortization of loan costs (7,115)
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(268,690)
--------
Net loss $(12,757)
========
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SHERMAN AVENUE PROPERTY
1549-71 SHERMAN
NOTES TO FINANCIAL STATEMENT
----------------------------
1. Summary of Significant Accounting Policies
------------------------------------------
Description of Property - The property consists of rental real estate which
includes retail and office space in Evanston, Illinois. At December 31,
1995, there were a total of 32 rentable units.
Description of Reporting Entity - The property is owned by an individual.
As the income or loss from the property's operations is included in the
individual's income tax return, no provision for income taxes is included
herein. Only income and expenses directly arising from the property's
operations are included in this financial statement.
Property and Depreciation - Building and improvements have been capitalized
at cost and are being depreciated on a straight-line basis over useful
lives of ten to forty years. Personal property is being depreciated on a
straight-line basis over a useful life of seven years.
Leasing Commissions - Commissions paid to secure tenant leases are being
amortized on a straight-line basis over the term of each lease.
Financing Costs - One-time charges paid to secure the mortgage are
amortized on a straight-line basis over the 10 year term of the mortgage.
Rent Abatements - Rent abatements allowed tenants are being amortized on a
straight-line basis over the term of each lease, in order to recognize
income ratably over the lease term.
Accounting Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of revenues and expenses and disclosure of contingent assets and
liabilities during the reporting period. Actual results could differ from
those estimates.
2. Related Party Transactions
--------------------------
A tenant of the property provides management services to the property.
Fees are five percent of rent collections and totalled $29,827 in 1995.
Rental income from the management company in 1995 totalled $13,560.
3. Interest Expense
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The property secures a mortgage with an outstanding balance of
$2,528,799 at December 31, 1995. Interest payments totaling $267,987
were made for 1995. The note will be adjusted to bear interest at
3.5% over the yield of one-year U.S. Treasury Bills with a cap and
floor of 14.5% and 9.5% per annum, respectively.
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SHERMAN AVENUE PROPERTY
1549-71 SHERMAN
NOTES TO FINANCIAL STATEMENT
----------------------------
4. Real Estate Taxes
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Real estate taxes are paid by the property owner, with the exception
of the property located at 1571 Sherman Avenue. The tenant of this
space is responsible for 100% of those real estate taxes, which
approximated $78,500 for 1995.
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SIGNATURES
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.
INLAND MORTGAGE INVESTORS FUND, L.P.-II
Inland Real Estate Investment Corporation
General Partner
/S/ ROBERT D. PARKS
By: Robert D. Parks
Chairman of the Board
and Chief Executive Officer
Date: May 13, 1996
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:
By: Inland Real Estate Investment Corporation
General Partner
/S/ ROBERT D. PARKS
By: Robert D. Parks
Chairman of the Board
and Chief Executive Officer
Date: May 13, 1996
/S/ MARK ZALATORIS
By: Mark Zalatoris
Vice President
Date: May 13, 1996
/S/ CYNTHIA M. HASSETT
By: Cynthia M. Hassett
Principal Financial Officer
and Principal Accounting Officer
Date: May 13, 1996
/S/ DANIEL L. GOODWIN
By: Daniel L. Goodwin
Director
Date: May 13, 1996
/S/ ROBERT H. BAUM
By: Robert H. Baum
Director
Date: May 13, 1996
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