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, 1996
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
1549-71 Sherman, Evanston, Illinois:
Independent Auditor's Report..................................... 3
Statement of Operating Income and Expenses for the year ended
December 31, 1996.............................................. 4
Notes to Statement of Operating Income and Expenses for the year
ended December 31, 1996........................................ 5
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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,
1996. 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, 1996 in conformity with generally accepted
accounting principles.
Wolf & Company LLP
Oak Brook, Illinois
May 5, 1997
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SHERMAN AVENUE PROPERTY
1549-71 SHERMAN
STATEMENT OF OPERATING INCOME AND EXPENSES
For the Year Ended December 31, 1996
Operating revenues:
Rental income $ 599,999
-----------
Operating expenses:
Office expense............................... 594
Real estate taxes (Note 4)................... 142,358
Depreciation................................. 82,340
Management fees (Note 2)..................... 30,000
Leasing commissions.......................... 3,090
Utilities.................................... 73,268
Cleaning, maintenance and decorating......... 33,715
Repairs...................................... 3,832
Insurance.................................... 5,775
Legal........................................ 225
Other operating expenses..................... 783
-----------
375,980
-----------
Operating income........................... 224,019
-----------
Other income (expense):
Interest expense (Note 3).................... (234,053)
Late fees.................................... (16,250)
Other income................................. 700
Amortization of loan costs................... (7,115)
-----------
(256,718)
-----------
Net loss................................... $ (32,699)
===========
The accompanying notes are an integral part of this financial statement.
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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,
1996, 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 of 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 ratable 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 totaled $30,000 in 1996.
Rental income from the management company in 1996 totaled $10,140.
3. Interest Expense
The property secures a mortgage with an outstanding balance of $2,492,879
at December 31, 1996. Interest payments totaling $234,053 were made for
1996. 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.
4. Real Estate Taxes
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 $80,070
for 1996.
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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 15, 1997
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 15, 1997
/S/ MARK ZALATORIS
By: Mark Zalatoris
Vice President
Date: May 15, 1997
/S/ KELLY TUCEK
By: Kelly Tucek
Principal Financial Officer
and Principal Accounting Officer
Date: May 15, 1997
/S/ DANIEL L. GOODWIN
By: Daniel L. Goodwin
Director
Date: May 15, 1997
/S/ ROBERT H. BAUM
By: Robert H. Baum
Director
Date: May 15, 1997
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