<PAGE>
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): December 15, 1997
COPLEY REALTY INCOME PARTNERS 2;
A LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Massachusetts
(State or Other Jurisdiction of Incorporation)
0-17810 04-2961376
(Commission File Number) (IRS Employer Identification No.)
225 Franklin Street, 25th Floor
Boston, MA 02110
(Address of principal executive offices) (Zip Code)
(617) 261-9000
Registrant's Telephone Number, Including Area Code
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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Item 2. Acquisition or Disposition of Assets.
- ----------------------------------------------
On December 15, 1997, Copley Realty Income Partners 2; A Limited
Partnership sold its property known as Rancho Dominguez located at 18435 Susana
Road, in Rancho Dominguez, CA. The property was sold to a third party (the
"Buyer") who is unaffiliated with the Partnership. The selling price was
determined by arm's length negotiations between the Partnership and the Buyer.
The property was sold for $3,486,000. The Partnership received net proceeds of
approximately $3,264,000 and recognized a loss of approximately $244,000.
Item 7. Financial Statements and Exhibits.
- -------------------------------------------
In connection with the disposition of the asset discussed in Item 2 above,
pro forma financial statements are presented below. The pro forma balance sheet
is presented for the period ended September 30, 1997 (Exhibit A). The pro forma
income statements are presented for the fiscal year ended December 31, 1996
(Exhibit B) and the period ended September 30, 1997 (Exhibit C).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: December 30, 1997 COPLEY REALTY INCOME PARTNERS 2;
A LIMITED PARTNERSHIP
(Registrant)
By: Second Income Corp.,
Managing General Partner
By: /s/ Wesley M. Gardiner, Jr.
---------------------------------
Name: Wesley M. Gardiner, Jr.
Title: President
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EXHIBIT A
Copley Realty Income Partners 2;
A Limited Partnership
Pro Forma Balance Sheet
September 30, 1997
Unaudited
<TABLE>
<CAPTION>
Pro Forma September 30, 1997
September 30, 1997 Adjustment Pro Forma
------------------ ---------- ------------------
<S> <C> <C> <C>
ASSETS
Property, Net $ 6,580,827 $ 6,580,827
Property held for disposition 3,403,308 ($3,403,308)(a) 0
Cash and cash equivalents 2,931,810 3,263,906 (a) 6,195,716
Short-term investments 1,233,426 0 1,233,426
----------- ----------- -----------
$14,149,371 ($139,402) $14,009,969
=========== =========== ===========
LIABILITIES AND PARTNERS'
CAPITAL
Accounts payable $ 45,303 0 $ 45,303
Accrued management fees 28,851 0 28,851
Deferred disposition fees 121,260 104,580 (b) 225,840
----------- ----------- -----------
Total liabilities 195,414 104,580 299,994
----------- ----------- -----------
Partners' capital (deficit):
Limited partners ($880 per
unit; 100,000 units
authorized, 32,770 units
issued and outstanding) 14,065,076 (241,542)(a) 13,823,534
General partners (111,119) (2,440)(a) (113,559)
----------- ----------- -----------
Total partners' capital 13,953,957 (243,982) 13,709,975
----------- ----------- -----------
$14,149,371 ($139,402) $14,009,969
=========== =========== ===========
</TABLE>
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EXHIBIT B
Copley Realty Income Partners 2;
A Limited Partnership
Pro Forma Income Statement
December 31, 1996
Unaudited
<TABLE>
<CAPTION>
Pro Forma December 31, 1996
December 31, 1996 Adjustment Pro Forma
------------------ ---------- ------------------
<S> <C> <C> <C>
Investment Activity
Property rentals $ 1,509,871 (713,135)(c) $ 796,736
Property operating expenses (214,519) 114,979 (c) (99,540)
Depreciation and amortization (688,380) 291,000 (c) (397,380)
----------- ----------- -----------
606,972 (307,156) 299,816
Joint venture earnings 210,976 0 210,976
Lease termination fee 1,600,000 0 1,600,000
Investment valuation
allowances (3,350,000) 0 (3,350,000)
----------- ----------- -----------
Total real estate operations (932,052) (307,156) (1,239,208)
Loss on sale of property 0 (243,982)(a) (243,982)
----------- ----------- -----------
Total real estate activity (932,052) (551,138) (1,483,190)
Interest on cash equivalents
and short term investments 250,877 0 250,877
----------- ----------- -----------
Total investment activity (681,175) (551,138) (1,232,313)
Portfolio Expenses
Management fee 123,057 (53,991)(f) 69,066
General and administrative 107,099 (2,940)(g) 104,159
----------- ----------- -----------
230,156 (56,931) 173,225
----------- ----------- -----------
Net loss ($911,331) ($494,207) ($1,405,538)
=========== =========== ===========
Net loss per limited
partnership unit ($27.47) ($14.89)(d) ($42.36)
=========== =========== ===========
Number of limited partnership
units outstanding during
the period 32,848 32,848 32,848
=========== =========== ===========
</TABLE>
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Copley Realty Income Partners 2; EXHIBIT C
A Limited Partnership
Pro Forma Income Statement
September 30, 1997
Unaudited
<TABLE>
<CAPTION>
Pro Forma September 30, 1997
September 30, 1997 Adjustment Pro Forma
------------------ ---------- ------------------
<S> <C> <C> <C>
Investment Activity
Property rentals $ 1,107,258 (492,144)(e) $ 615,114
Property operating expenses (150,673) 59,636 (e) (91,037)
Depreciation and
amortization (316,748) 18,000 (e) (298,748)
------------ --------- ----------
639,837 (414,508) 225,329
Joint venture earnings 57,570 0 57,570
Gain (loss) on sales of
property 387,990 (243,982)(a) 144,008
------------ --------- ----------
Total real estate
operations 1,085,397 (658,490) 426,907
Interest on cash equivalents
and short term investments 204,056 0 204,056
------------ --------- ----------
Total investment activity 1,289,453 (658,490) 630,963
Portfolio Expenses
Management fee 221,563 (36,540)(f) 185,023
General and administrative 84,796 0 84,796
------------ --------- ----------
306,359 (36,540) 269,819
------------ --------- ----------
Net income (loss) $983,094 ($621,950) $361,144
============ ========= ==========
Net income (loss) per limited
partnership unit $29.66 ($18.76)(d) $10.89
============ ========= ==========
Number of limited partnership
units outstanding during
the period 32,818 32,818 32,818
============ ========= ==========
</TABLE>
Pro Forma Financial Statement Footnotes:
(a) Disposition of asset as discussed in Item 2 herein and allocation of the
loss on such disposal to the Partners.
(b) Disposition fee incurred in connection with the disposition of the asset
discussed in Item 2 herein.
(c) Removal of 1996 operating activity related to the disposed asset discussed
in Item 2 herein.
(d) Calculation of net loss per limited partnership unit after the removal of
operating activity and addition of the loss related to the disposed asset
discussed in Item 2 herein.
(e) Removal of 1997 year-to-date operating activity related to the disposed
asset discussed in Item 2 herein.
(f) Removal of management fees based on distributions received during the pro
forma period from the disposed asset discussed in Item 2 herein.
(g) Removal of appraisal fees incurred during the pro forma period for the
disposed asset discussed in Item 2 herein.
