5
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the period ended June 30, 1997
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________.
Commission File Number: 0-18148
DEAN WITTER REALTY YIELD PLUS, L.P.
(Exact name of registrant as specified in governing instrument)
Delaware 13-3426531
(State of organization) (IRS Employer
Identification No.)
2 World Trade Center, New York, NY 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212)
392-1054
Former name, former address and former fiscal year, if changed
since last report: not applicable
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
Page 1 of 19
<TABLE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
DEAN WITTER REALTY YIELD PLUS, L.P.
BALANCE SHEETS
<CAPTION>
June 30, December
31,
1997 1996
<S> <C>
<C>
ASSETS
Real estate:
Land $
13,444,875 $ 13,444,875
Buildings and improvements 102,911,923
102,237,481
116,356,798
115,682,356
Accmulated depreciation 20,333,936
18,386,846
96,022,862
97,295,510
Investment in participating mortgage loan, net of
allowance of $15,549,278 18,995,382
18,995,382
Cash and cash equivalents 5,050,777
6,799,320
Deferred expenses, net 1,351,137
1,419,805
Other assets 1,734,284
2,242,810
$123,154,442
$126,752,827
LIABILITIES AND PARTNERS' CAPITAL
Mortgage notes payable $ 19,592,538 $
19,726,496
Accounts payable and other liabilities 4,080,500
3,472,149
Minority interest 18,838,348
19,166,086
42,511,386
42,364,731
Partners' capital (deficiency):
General partners (7,495,536)
(7,121,032)
Limited partners ($20 per Unit, 8,909,969 Units issued)
88,138,592 91,509,128
Total partners' capital 80,643,056
84,388,096
$123,154,442
$126,752,827
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
DEAN WITTER REALTY YIELD PLUS, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three and six months ended June 30, 1997 and 1996
<CAPTION>
Three months ended Six
months ended
June 30, June 30,
1997 1996 1997 1996
<S> <C> <C> <C>
<C>
Revenues:
Rental $4,415,410 $4,254,485 $
8,631,415 $ 8,519,008
Interest on participating
mortgage loan 146,800 692,647
174,940 1,377,765
Interest on short-term investments 40,136 120,568
99,345 291,119
Other 162,536 133,710
271,317 278,463
4,764,882 5,201,410
9,177,017 10,466,355
Expenses:
Property operating 3,331,197 3,848,185
6,489,794 6,472,197
Interest 405,895 402,200
800,401 805,223
Depreciation 977,868 953,189
1,947,090 1,852,018
Amortization 99,276 105,074
194,976 232,783
General and administrative 246,068 298,348
481,748 595,886
5,060,304 5,606,996
9,914,009 9,958,107
(Loss) income before minority
interest (295,422) (405,586)
(736,992) 508,248
Minority interest 209,595 154,387
434,056 415,576
Net (loss) income $ (505,017) $ (559,973)
$(1,171,048) $ 92,672
Net (loss) income allocated to:
Limited partners $ (454,515) $ (503,976)
$(1,053,943) $ 83,405
General partners (50,502) (55,997)
(117,105) 9,267
$ (505,017) $ (559,973)
$(1,171,048) $ 92,672
Net (loss) income per Unit of
limited partnership interest $ (.05) $
(.06) $ (.12) $ .01
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
DEAN WITTER REALTY YIELD PLUS, L.P.
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL (DEFICIENCY)
Six months ended June 30, 1997
<CAPTION>
Limited General
Partners Partners Total
<S> <C> <C>
<C>
Partners' capital (deficiency)
at January 1, 1997 $91,509,128
$(7,121,032) $84,388,096
Net loss (1,053,943)
(117,105) (1,171,048)
Cash distributions (2,316,593)
(257,399) (2,573,992)
Partners' capital (deficiency)
at June 30, 1997 $88,138,592
$(7,495,536) $80,643,056
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
DEAN WITTER REALTY YIELD PLUS, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended June 30, 1997 and 1996
<CAPTION>
1997 1996
<S> <C>
<C>
Cash flows from operating activities:
Net (loss) income $(1,171,048) $
92,672
Adjustments to reconcile net (loss) income to net cash
provided by operating activities:
Depreciation and amortization 2,142,066
2,084,801
Minority interest in earnings of consolidated
partnership 434,056
415,576
Increase in deferred expenses (126,308)
(58,262)
Decrease in other assets 508,526
83,024
Increase in accounts payable and other liabilities
608,351 508,222
Net cash provided by operating activities
2,395,643 3,126,033
Cash flows from investing activities:
Additions to real estate (674,442)
(2,105,855)
Net cash used in investing activities (674,442)
(2,105,855)
Cash flows from financing activities:
Repayments of mortgage note payable (133,958)
(136,118)
Cash distributions (2,573,992)
(9,186,914)
Contributions by minority interest to consolidated
partnership 162,474
871,029
Minority interest in distributions from
consolidated partnership (924,268)
(1,015,599)
Net cash used in financing activities (3,469,744)
(9,467,602)
Decrease in cash and cash equivalents (1,748,543)
(8,447,424)
Cash and cash equivalents at beginning of period
6,799,320 18,939,265
Cash and cash equivalents at end of period $ 5,050,777
$10,491,481
Supplemental disclosure of cash flow information:
Cash paid for interest $ 599,074 $
805,223
See accompanying notes to consolidated financial
statements.
</TABLE>
DEAN WITTER REALTY YIELD PLUS, L.P.
Notes to Consolidated Financial Statements
1. The Partnership
Dean Witter Realty Yield Plus, L.P. (the "Partnership")
is a limited partnership organized under the laws of
the State of Delaware in 1987. The Managing General
Partner of the Partnership is Dean Witter Realty Yield
Plus Inc., which is wholly-owned by Dean Witter Realty
Inc. ("Realty").
The financial statements include the accounts of the
Partnership, DW Columbia Gateway Associates, DW
Michelson Associates, DW Lakeshore Associates, Deptford
Crossing Associates, DW Community Centers Limited
Partnership and DW Maplewood Inc. on a consolidated
basis. All significant intercompany accounts and
transactions have been eliminated.
The Partnership's records are maintained on the accrual
basis of accounting for financial reporting and tax
purposes.
Net income (loss) per Unit amounts are calculated by
dividing net income (loss) allocated to Limited
Partners, in accordance with the Partnership Agreement,
by the weighted average number of Units outstanding.
In the opinion of management, the accompanying
financial statements, which have not been audited,
include all adjustments necessary to present fairly the
results for the interim periods. Except for reserves
of uncollected interest relating to the participating
mortgage loan, such adjustments consist only of normal
recurring accruals.
These financial statements should be read in
conjunction with the annual financial statements and
notes thereto included in the Partnership's annual
report on Form 10-K filed with the Securities and
Exchange Commission for the year ended December 31,
1996. Operating results of interim periods may not be
indicative of the operating results for the entire
year.
DEAN WITTER REALTY YIELD PLUS, L.P.
Notes to Consolidated Financial Statements
The Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128,
"Earnings per Share" in February 1997. This
pronouncement establishes standards for computing and
presenting earnings per share, and is effective for the
Partnership's 1997 year-end financial statements. The
Partnership's management has determined that this
standard will have no impact on the Partnership's
computation or presentation of net income (loss) per
unit of limited partnership interest.
2. Real Estate
The Partnership's mortgage note payable secured by the
Genessee Crossing shopping center matured in May 1997.
The Partnership was unable to refinance the loan. The
lender has commenced foreclosure proceedings and title
to the property is expected to transfer in mid-August.
Since the net book value of the property ($8,163,416)
is less than the mortgage note payable ($8,590,000),
the Partnership's income from forgiveness of the note
will exceed its loss from foreclosure of real estate.
3. Investment in Participating Mortgage Loan
The owner/borrower on the participating mortgage loan
is operating under Chapter 11 of the U.S. Bankruptcy
code. During the six months ended June 30, 1997, the
owner/borrower paid to the Partnership $174,940 of
$1,370,236 total interest due. The Partnership
reserved the remaining accrued but unpaid interest. As
of June 30, 1997, the Partnership's total reserves
against accrued but unpaid interest approximate
$1,852,000. The ultimate outcome of the bankruptcy
proceedings is uncertain at this time.
DEAN WITTER REALTY YIELD PLUS, L.P.
Notes to Consolidated Financial Statements
4. Related Party Transactions
Realty and an affiliate of Realty provided property
management services for four of the Partnership's
properties at June 30, 1997 and 1996. The Partnership
paid Realty and its affiliate management fees of
approximately $120,000 and $112,000 for the six months
ended June 30, 1997 and 1996, respectively. These
amounts are included in property operating expenses.
Realty performs administrative functions, processes
certain investor transactions and prepares tax
information for the Partnership. For the six-month
periods ended June 30, 1997 and 1996, the Partnership
incurred approximately $198,000 and $193,000,
respectively, for these services. These amounts are
included in general and administrative expenses.
As of June 30, 1997, Realty and its affiliate were owed
a total of approximately $53,000 for the above-
mentioned services.
5. Litigation
Various public partnerships sponsored by Realty
(including the Partnership and its Managing General
Partner) are defendants in purported class action
lawsuits pending in state and federal court. The
complaints allege a number of claims, including breach
of fiduciary duty, fraud and misrepresentation, and
seek an accounting of profits, compensatory and other
damages in an unspecified amount, possible liquidation
of the Partnership under a receiver's supervision and
other equitable relief. The defendants are vigorously
defending these actions. It is impossible to predict
the effect, if any, the outcome of these actions might
have on the Partnership's financial statements.
DEAN WITTER REALTY YIELD PLUS, L.P.
Notes to Consolidated Financial Statements
6. Subsequent Cash Distributions
On July 30, 1997, the Partnership paid a cash
distribution of $.13 per Unit to Limited Partners. The
cash distribution aggregated $1,286,996 with $1,158,296
distributed to Limited Partners and $128,700
distributed to the General Partners.
DEAN WITTER REALTY YIELD PLUS, L.P.
ITEM 2. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Liquidity and Capital Resources
The Partnership raised $178,199,380 through a public
offering which terminated in 1987. The Partnership has
no plans to raise additional capital.
The Partnership originally invested in seven loans or
land leases. Due to the past weakness in real estate
markets, most of the properties did not generate
sufficient cash flow to fully service their debt. As a
result, prior to December 31, 1994, the Partnership
acquired all but one of the properties in which it
originally invested. No additional investments are
planned.
The economic expansion continues and has provided for a
rebound in the commercial property markets. Employment
growth, especially in business services and technology
industries, has increased demand for office space. The
steady demand and the limited amount of speculative
office construction has resulted in falling vacancies,
rising rents and increasing property values in many
markets. Some office markets are faring better than
others and, in certain areas, improved market
conditions can support new construction. Currently,
the demand for large blocks of available office space
in the downtown financial markets of Boston (the
location of One Congress Street) exceeds supply. The
relative absence of office construction and growth in
demand from professional service firms has recently
resulted in an absorption of office space and an
increase in rental rates in the class A office market
in Orange County, CA (the location of 2600 Michelson
Drive). Vacancies at many office/research and
development properties, such as Greenway Pointe, are
declining as communications, computer and software
companies demand additional space. In the retail
sector, a changing tenant base (caused by the
domination of certain power center tenants coupled with
bankruptcies and major restructuring of other tenants),
past overbuilding in the retail market and reduced
consumer spending is resulting in higher vacancies and
stagnant rents.
DEAN WITTER REALTY YIELD PLUS, L.P.
As disclosed in Note 2 to the consolidated financial
statements, the mortgage note payable relating to the
Genesee Crossing retail center is past due, and the
lender has commenced foreclosure proceedings to take
control of the property. During the three- and six-
month periods ended June 30, 1997, Partnership cash
flow from the Genessee Crossing property was
approximately $120,000 and $200,000, respectively.
The Partnership's note payable secured by the Deptford
Crossing shopping center, for approximately
$11,002,000, matures in September 1997. The lender has
refused to discuss refinancing of the note with the
Partnership. The Partnership is currently marketing
the Deptford property for sale to determine whether it
can sell the property for an amount greater than the
principal of the mortgage note payable. If the
Partnership is unable to sell the property or refinance
the loan, the Partnership may lose the property through
foreclosure. During the three- and six-month periods
ended June 30, 1997, Partnership cash flow from the
Deptford Crossing property was approximately $65,000
and $187,000, respectively.
The Managing General Partner has identified a potential
purchaser of the 2600 Michelson Drive property and has
begun to negotiate a sale agreement. The Managing
General Partner is currently marketing the Greenway
Pointe property for sale, and expects to market for
sale its remaining investments over the next two years.
However, there is no assurance that the Partnership
will be able to sell its property interests in the near
future.
The Partnership's liquidity depends upon the cash flow
from operations of its real estate investments,
interest received on its participating mortgage loan
and expenditures for building improvements and tenant
improvements and leasing commissions in connection with
the leasing of space. During the three- and six-month
periods ended June 30, 1997, all of the Partnership's
properties, except for 401 East Ontario Street,
generated positive cash flow from operations, and it is
anticipated that they will continue to do so during the
remainder of 1997. Significant repair costs at 401
East Ontario Street caused property operating expenses
DEAN WITTER REALTY YIELD PLUS, L.P.
there to exceed rental income by approximately $408,000
and $988,000 in the three- and six-month periods ended
June 30, 1997. Also, as described below, the
owner/borrower on the One Congress Street property is
in Chapter 11 bankruptcy proceedings and did not pay
approximately $546,000 and $1,195,000 of its minimum
debt service to the Partnership in the three- and six-
month periods ended June 30, 1997, respectively.
The Partnership's liquidity also has been and will
continue to be affected by the disposition of
Partnership properties; as properties are disposed of,
Partnership cash from operations available to fund
investor distributions and capital expenditures
decreases.
During the six months ended June 30, 1997, the
Partnership incurred approximately $639,000 (net of
contributions by the minority interest) primarily for
tenant-related capital expenditures at Greenway Pointe
(approximately $320,000) and 2600 Michelson Drive
(approximately $168,000); no other individual property
accounted for a significant portion of the remaining
expenditures.
Also, in 1997, the Partnership incurred approximately
$1.0 million and $2.0 million for repairs on the fire
and life safety systems at 401 East Ontario Street in
the three- and six-month periods ended June 30, 1997;
the total repair costs are expected to be approximately
$3.9 million, of which approximately $2.9 million has
been incurred to date. The Partnership also incurred
approximately $145,000 of legal costs in 1997 in
connection with its lawsuits to recover its costs to
repair the concrete exterior walls (completed 1996) and
the fire and life safety systems. The Partnership
expects to complete the repairs in 1997.
As of June 30, 1997, the Partnership has commitments to
contribute approximately $468,000, primarily for lease-
related capital expenditures at the Michelson property.
DEAN WITTER REALTY YIELD PLUS, L.P.
The Partnership's participating mortgage loan is
secured by the One Congress Street property. The
General Services Administration ("GSA"), the sole
tenant of the office space at the property, vacated
approximately 30% of the space at the property in
August 1996, and the lease on its remaining space
expired July 31, 1997. On October 15, 1996, the
owner/borrower filed a voluntary petition under Chapter
11 of the U.S. bankruptcy code.
The cash flow generated from the lease of the garage at
the One Congress Street property is projected to be
sufficient to pay the debt service due under the first
mortgage loan on the property. However, current market
rental rates in Boston are significantly less than in
the early 1990's when the GSA lease was entered into.
Therefore, the Partnership believes that the rent to be
received by the owner/borrower after re-leasing the
office space at the property and, as a result, the
Partnership's cash flow from the property, may
significantly decrease. GSA continues to occupy its
remaining office space, and GSA and the owner/borrower
are negotiating a new lease. If the negotiations with
GSA are not successful, there may be a significant
amount of time before a new tenant is found for this
space, and substantial funds may be required to re-
lease the space.
The Partnership believes that during the period of the
bankruptcy it will be unable to collect its interest on
the loan in full and that the bankruptcy may adversely
impact future leasing at the property.
During the six months ended June 30, 1997, interest
from the participating mortgage loan and cash flow from
operations of real estate owned (net of minority
interest share), except for repair costs at 401 East
Ontario Street, exceeded distributions to investors.
The Partnership funded the repair costs and capital
expenditures from cash flow from operations and cash
reserves. The Partnership expects this trend to
continue during the remainder of 1997.
DEAN WITTER REALTY YIELD PLUS, L.P.
The Partnership can not determine the extent to which
cash flow from the One Congress Street property and the
properties subject to mortgages maturing in 1997 will
be reduced during the remainder of 1997. It is
possible that the cash flow from One Congress Street
along with Partnership cash flow from operations will
continue to be insufficient to fund Partnership cash
needs. If this were to occur, the Partnership will
continue to use its cash reserves to fund a portion of
its cash requirements and might need to reduce cash
distributions.
Other assets decreased during the six months ended June
30, 1997 due to the collection of tenant receivables
and the amortization of prepaid real estate taxes and
insurance.
Except as discussed above and in the consolidated
financial statements, the Managing General Partner is
not aware of any trends or events, commitments or
uncertainties that may have a material impact on
liquidity.
On July 30, 1997, the Partnership paid a cash
distribution of $.13 per Unit to Limited Partners. The
cash distribution aggregated $1,286,996 with $1,158,296
distributed to Limited Partners and $128,700
distributed to the General Partners.
Operations
Fluctuations in the Partnership's operating results for
the three- and six-month periods ended June 30, 1997
compared to 1996 are primarily attributable to the
following:
Interest on the participating mortgage loan decreased
in 1997 compared to 1996 due to reserves to accrued but
uncollected interest as described above in "Liquidity
and Capital Resources".
Property operating expenses decreased in 1997 compared
to 1996 primarily as a result of higher expenditures
for repairs and related litigation at 401 East Ontario
Street during 1996. During
DEAN WITTER REALTY YIELD PLUS, L.P.
the three- and six-month periods ended June 30, 1997,
the total repair costs were $1,128,000 and $2,185,000,
respectively; during the three- and six-month periods
ended June 30, 1996, these costs were $1,668,000 and
$2,305,000, respectively.
Interest income on short-term investments decreased in
1997 compared to 1996 because the Partnership had less
cash available for investment because it used
significant amounts of cash reserves to fund the
repairs at the 401 East Ontario Street property and
capital expenditures. Also, during the first quarter
of 1996, the Partnership earned interest on cash from
the December 1995 sale of three shopping centers until
such cash was distributed to Limited Partners in
January 1996.
There were no other individually significant factors
which caused changes to revenues or expenses.
A summary of the office, retail, residential and
research and development building markets where the
Partnership's properties are located, and the
performance of each property is as follows:
During the second quarter of 1997, the vacancy rate in
the research and development market of Columbia, MD,
the location of Greenway Pointe, slightly decreased to
6%. Also, rental rates are increasing in this market,
and there is no significant new construction. During
the second quarter of 1997, occupancy at the property
increased to 100% as Green Springs Health Services
Inc., an existing tenant which now occupies
approximately 37% of the property's space, moved into
the building's remaining vacant space. Other leases
totaling 31% of the property's space are scheduled to
expire in 1998.
The luxury residential sub-market in Chicago, IL,
location of the 401 East Ontario property, continues to
be strong. It has a current vacancy rate less than 4%,
and rental rates are increasing. During the second
quarter of 1997, occupancy at the property decreased
slightly to 80%. Occupancy at the property has been
DEAN WITTER REALTY YIELD PLUS, L.P.
adversely affected by the repair programs at the
property. The Partnership expects that the above-
described repairs on the fire and life systems (which
began during the third quarter of 1996) will be
intrusive upon residents as work will be needed to be
performed inside each rental unit for up to twelve
days. To maximize tenant retention while these repairs
are being performed, the Partnership has abated each
tenant's rent while work is being performed inside
their unit and granted concessions to tenants while
repairs are done to corridors on the floor they occupy.
The effect, if any, of this repair program on rents and
occupancy in the future cannot be determined at this
time. Also, in 1997, rental rates for certain
apartment types at the property have been increased
over 3%.
During the second quarter of 1997, the market vacancy
rate for Class A office space in Irvine, California,
the location of 2600 Michelson Drive, remained at 15%.
Rental rates have continued to increase in this market
because of the continued strong demand for quality
Class A space and lack of significant new construction.
During the second quarter of 1997, occupancy at the
property decreased slightly to 91%. Leases on
approximately 25% and 17% of the space at the property
expire in 1998 and 1999, respectively.
During the six months ended June 30, 1997, the Boston
office market, the location of One Congress Street,
continued to strengthen and rental rates increased. As
discussed above, GSA is the sole tenant of the office
space, which is 70% occupied at June 30, 1997. The
owner/borrower is negotiating a new lease with GSA
because GSA's existing lease expired July 31, 1997.
GSA still occupies its space while it negotiates a new
lease. Also, the retail space, which is not a
significant portion of the overall space, remained
substantially vacant at June 30, 1997.
During the second quarter of 1997, the vacancy rate in
the retail market in Deptford, New Jersey, the location
of Deptford Crossing, decreased to 5%. There are two
retail developments which opened in the second quarter
of 1997 and two retail developments planned for
construction in the near future. This space will be
occupied
DEAN WITTER REALTY YIELD PLUS, L.P.
competition to Deptford Crossing's existing tenants,
and anticipates that these new centers will benefit the
tenants at Deptford Crossing because the new retailers
will increase consumer traffic in the Deptford market.
During the second quarter of 1997, occupancy at the
property remained at 77%. No significant amount of
leases expire before 2001.
The vacancy rate in Flint, Michigan, the location of
the Genesee Crossing shopping center, currently is 10%.
Occupancy at the property during the six months ended
June 30, 1997 remained at 99%; however, a tenant in
bankruptcy, which leases approximately 7% of the
property's space, will vacate its space in August 1997.
The lease of the Burlington Coat Factory, for
approximately 42% of the property's space, is scheduled
to expire in 2009. Burlington has a "kick-out" option
to terminate the lease at any time if sales are below a
threshold amount; sales are currently below this
threshold, but Burlington has not indicated an interest
in vacating its space early. Other leases totaling
approximately 14% of the property's space are scheduled
to expire in 1999.
Inflation
Inflation has been consistently low during the periods
presented in the financial statements and, as a result,
has not had a significant effect on the operations of
the Partnership or its properties.
DEAN WITTER REALTY YIELD PLUS, L.P.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
An exhibit index has been filed as part of
this Report on Page E1.
(b) Report on Form 8-K.
Report dated April 4, 1997, of the
Valuation per Unit of Limited Partnership
Interest at December 31, 1996.
DEAN WITTER REALTY YIELD PLUS, L.P.
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.
DEAN WITTER REALTY YIELD
PLUS, L.P.
By: Dean Witter Realty Yield
Plus Inc.
Managing General Partner
Date: August 14, 1997 By: /s/E.
Davisson Hardman, Jr.
E. Davisson Hardman, Jr.
President
Date: August 14, 1997 By:
/s/Lawrence Volpe
Lawrence Volpe
Controller
(Principal Financial and
Accounting Officer)
DEAN WITTER REALTY YIELD PLUS, L.P.
Quarter Ended June 30, 1997
Exhibit Index
Exhibit No. Description
27 Financial Data Schedule
E1
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Registrant is a limited partnership which invests in real estate,
participating mortgage loans, and real estate joint ventures. In
accordance with industry practice, its balance sheet is unclassified. For
full information, refer to the accompanying unaudited financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 5,050,777
<SECURITIES> 0
<RECEIVABLES> 1,036,840
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 123,154,442<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 80,643,056<F2>
<TOTAL-LIABILITY-AND-EQUITY> 123,154,442<F3>
<SALES> 0
<TOTAL-REVENUES> 9,177,017<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 9,547,664
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 800,401
<INCOME-PRETAX> (1,171,048)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,171,048)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,171,048)
<EPS-PRIMARY> (.12)<F5>
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net investments
in real estate of $96,022,862, net investment in participating mortgage
loans of $18,995,382, net deferred expenses of $1,351,137 and other assets
of $697,444.
<F2>Represents partners' capital.
<F3>Liabilities include mortgage notes payable of $19,592,538, minority
interest of $18,838,348, and accounts payable and other liabilities of
$4,080,500.
<F4>Total revenue includes rent of $8,631,415, interest on participating
mortgage loan of $174,940, interest on short-term investments of
$99,345 and other revenue of $271,317.
<F5>Represents net income per Unit of limited partnership interest.
</FN>
</TABLE>