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 March 31, 1995
-----------------------------------------------
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 0-17173
MCNEIL REAL ESTATE FUND XXVII, L.P.
- - - - -----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 33-0214387
- - - - -----------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
13760 Noel Road, Suite 700, LB70, Dallas, Texas, 75240
- - - - -----------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (214) 448-5800
--------------------------
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 and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
<PAGE>
MCNEIL REAL ESTATE FUND XXVII, L.P.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
- - - - ------ --------------------
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
---------- ----------
<S> <C> <C>
ASSETS
- - - - ------
Real estate investments:
Land..................................................... $ 5,387,855 $ 5,387,855
Building and improvements................................ 26,186,354 26,072,480
---------- ----------
31,574,209 31,460,335
Less: Accumulated depreciation and amortization......... (5,909,359) (5,538,346)
---------- ----------
25,664,850 25,921,989
---------- ----------
Mortgage loan investments................................... 1,757,253 1,821,352
Less: Allowance for impairment.............................. (303,626) (349,325)
---------- ----------
1,453,627 1,472,027
Mortgage loan investments - affiliates...................... 2,235,902 3,207,902
Cash and cash equivalents .................................. 9,200,884 7,196,410
Cash segregated for security deposits and repurchase........
of limited partnership units............................. 71,829 404,312
Accounts receivable......................................... 523,822 525,287
Accrued interest receivable................................. 21,080 49,373
Deferred borrowing costs, net of accumulated
amortization of $102,183 and $91,612 at March 31,
1995 and December 31, 1994, respectively................. 193,795 204,366
Prepaid expenses and other assets........................... 496,733 520,187
---------- ----------
$39,862,522 $39,501,853
========== ==========
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
- - - - -----------------------------------------
Mortgage note payable....................................... $6,689,873 $ 6,726,266
Accounts payable and accrued expenses....................... 76,053 72,431
Accrued property taxes...................................... 200,481 -
Payable to limited partners................................. - 332,931
Payable to affiliates....................................... 265,150 227,189
Security deposits and deferred rental income................ 223,539 194,886
---------- ----------
7,455,096 7,553,703
---------- ----------
Partners' equity (deficit):
Limited partners - 10,000,000 limited partnership units
authorized; 5,310,877 limited partnership units
outstanding at March 31, 1995 and December 31, 1993...... 32,560,280 32,105,597
General Partner.......................................... (152,854) (157,447)
---------- ----------
32,407,426 31,948,150
---------- ----------
$39,862,522 $39,501,853
========== ==========
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XXVII, L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------
1995 1994
--------- ---------
<S> <C> <C>
Revenue:
Rental revenue............................................... $1,931,262 $1,811,367
Interest income on mortgage loan investments................. 53,772 30,602
Interest income on mortgage loan investments-affiliates...... 93,971 65,412
Other interest income........................................ 89,943 31,351
Property tax refund.......................................... 30,515 -
--------- ---------
Total revenue.............................................. 2,199,463 1,938,732
--------- ---------
Expenses:
Interest..................................................... 186,878 190,254
Depreciation and amortization................................ 371,013 352,653
Property taxes............................................... 219,920 197,994
Personnel costs.............................................. 182,492 150,531
Utilities.................................................... 109,917 111,575
Repairs and maintenance...................................... 129,951 123,279
Property management fees - affiliates........................ 108,127 100,692
Other property operating expenses............................ 164,643 161,579
General and administrative................................... 7,793 34,355
General and administrative - affiliates...................... 259,453 245,859
--------- ---------
Total expenses............................................. 1,740,187 1,668,771
--------- ---------
Net income..................................................... $ 459,276 $ 269,961
========= =========
Net income allocable to limited partners....................... $ 454,683 $ 267,261
Net income allocable to General Partner........................ 4,593 2,700
--------- ---------
Net income..................................................... $ 459,276 $ 269,961
========= =========
Net income per weighted average hundred limited
partnership units............................................ $ 8.56 $ 5.00
========= =========
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XXVII, L.P.
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
(Unaudited)
For the Three Months Ended March 31, 1995 and 1994
<TABLE>
<CAPTION>
Total
General Limited Partners'
Partner Partners Equity
-------- ---------- ----------
<S> <C> <C> <C>
Balance at December 31, 1993.............. $(171,003) $31,096,521 $30,925,518
Net income................................ 2,700 267,261 269,961
-------- ---------- ----------
Balance at March 31, 1994................. $(168,303) $31,363,782 $31,195,479
======== ========== ==========
Balance at December 31, 1994.............. $(157,447) $32,105,597 $31,948,150
Net income................................ 4,593 454,683 459,276
-------- ---------- ----------
Balance at March 31, 1995................. $(152,854) $32,560,280 $32,407,426
======== =========== ==========
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XXVII, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
Increase in Cash and Cash Equivalents
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------------
1995 1994
--------- ----------
<S> <C> <C>
Cash flows from operating activities:
Cash received from tenants........................ $1,945,420 $1,803,901
Cash paid to suppliers............................ (552,063) (699,998)
Cash paid to affiliates........................... (329,619) (469,811)
Interest received................................. 95,554 71,107
Interest received from affiliates................. 124,726 82,653
Interest paid..................................... (176,307) (179,683)
Property taxes paid............................... (19,439) (51,363)
Property tax refund............................... 30,515 -
--------- ---------
Net cash provided by operating activities............ 1,118,787 556,806
--------- ---------
Cash flows from investing activities:
Additions to real estate investments.............. (113,874) (59,810)
Proceeds from collection of mortgage loan
investments..................................... 64,099 -
Mortgage loan investments - affiliates............ - (93,830)
Proceeds from collection of mortgage loan
investments - affiliates........................ 972,000 1,603,135
--------- ---------
Net cash provided by investing activities............ 922,225 1,449,495
--------- ---------
Cash flows from financing activities:
Net decrease in cash segregated for repurchase
of limited partnership units.................... 332,786 249,536
Principal payments on mortgage note
payable......................................... (36,393) (33,016)
Repurchase of limited partnership units........... (332,931) (332,933)
--------- ---------
Net cash used in financing activities................ (36,538) (116,413)
--------- ---------
Net increase in cash and cash equivalents............ 2,004,474 1,889,888
Cash and cash equivalents at beginning of
period............................................ 7,196,410 4,580,636
--------- ---------
Cash and cash equivalents at end of period........... $9,200,884 $6,470,524
========= =========
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XXVII, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
Reconciliation of Net Income to Net Cash Provided by
Operating Activities
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------------
1995 1994
--------- ---------
<S> <C> <C>
Net income........................................... $ 459,276 $ 269,961
--------- ---------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization..................... 371,013 352,653
Amortization of deferred borrowing costs.......... 10,571 10,571
Allowance for impairment of mortgage loan
investment...................................... (45,699) -
Changes in assets and liabilities:
Cash segregated for security deposits........... (303) (17,594)
Accounts receivable............................. 1,465 (2,514)
Accrued interest receivable..................... 28,293 26,395
Prepaid expenses and other assets............... 23,454 (52,894)
Accounts payable and accrued expenses........... 3,622 (95,971)
Accrued property taxes.......................... 200,481 146,631
Payable to affiliates........................... 37,961 (123,260)
Security deposits and deferred rental
income........................................ 28,653 42,828
--------- ---------
Total adjustments............................. 659,511 286,845
--------- ---------
Net cash provided by operating activities............ $1,118,787 $ 556,806
========= =========
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XXVII, L.P.
Notes to Financial Statements
March 31, 1995
(Unaudited)
NOTE 1.
- - - - ------
McNeil Real Estate Fund XXVII, L.P. (the "Partnership"), formerly known as
Southmark Prime Plus, L.P., was organized by affiliates of Southmark Corporation
("Southmark") on January 16, 1987, as a limited partnership under the provisions
of the Delaware Revised Uniform Limited Partnership Act to make short-term loans
to affiliates of the general partner. The general partner of the Partnership is
McNeil Partners, L.P. (the "General Partner"), a Delaware limited partnership,
an affiliate of Robert A. McNeil ("McNeil"). The principal place of business for
the Partnership and the General Partner is 13760 Noel Road, Suite 700, Dallas,
Texas 75240.
In the opinion of management, the financial statements reflect all adjustments
necessary for a fair presentation of the Partnership's financial position and
results of operations. All adjustments were of a normal recurring nature.
However, the results of operations for the three months ended March 31, 1995 are
not necessarily indicative of the results to be expected for the year ending
December 31, 1995.
NOTE 2.
- - - - ------
The financial statements should be read in conjunction with the financial
statements contained in the Partnership's Annual Report on Form 10-K for the
year ended December 31, 1994, and the notes thereto, as filed with the
Securities and Exchange Commission, which is available upon request by writing
to McNeil Real Estate Fund XXVII, L.P., c/o McNeil Real Estate Management, Inc.,
Investor Services, 13760 Noel Road, Suite 700, Dallas, Texas 75240.
NOTE 3.
- - - - ------
Certain prior period amounts have been reclassified to conform to the current
period presentation.
NOTE 4.
- - - - ------
The Partnership pays property management fees equal to 5% of the gross rental
receipts for its mini-storage warehouses and 6% of gross rental receipts for its
commercial properties to McNeil Real Estate Management, Inc. ("McREMI"), an
affiliate of the General Partner, for providing property management services for
the Partnership's mini-storage warehouses and commercial properties and leasing
services for its mini-storage warehouses. McREMI may also choose to provide
leasing services for the Partnership's commercial properties, in which case
McREMI will receive property management fees from such commercial properties
equal to 3% of the property's gross rental receipts plus leasing commissions
based on the prevailing market rate for such services where the property is
located.
The Partnership reimburses McREMI for its costs, including overhead, of
administering the Partnership's affairs.
The Partnership is paying an asset management fee, which is payable to the
General Partner. Through 1999, the asset management fee is calculated as 1% of
the Partnership's tangible asset value. Tangible asset value is determined by
using the greater of (i) an amount calculated by applying a capitalization rate
of 9% to the annualized net operating income of each property or (ii) a value of
$30 per gross square foot for mini-storage warehouses and $50 per gross square
foot for commercial properties to arrive at the property tangible asset value.
The property tangible asset value is then added to the book value of all other
assets excluding intangible items. The fee percentage decreases subsequent to
1999.
<PAGE>
Compensation and reimbursements paid to or accrued for the benefit of the
General Partner or its affiliates are as follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------------
1995 1994
------- -------
<S> <C> <C>
Property management fees............................. $108,127 $100,692
Charged to general and administrative -
affiliates:
Partnership administration........................ 107,999 104,537
Asset management fee.............................. 151,454 141,322
------- -------
$367,580 $346,551
======= =======
</TABLE>
Under the terms of its amended partnership agreement, the Partnership is
expressly permitted to make loans to affiliates of the General Partner, so long
as such loans meet certain conditions, including that such loans bear interest
at a rate of prime plus 2.5%, or prime plus 3.5% if the loan is junior to other
indebtedness. These loans are secured by income-producing real estate and may be
either junior or senior to other indebtedness secured by such property. The
Partnership received repayments from affiliates of $972,000 during the first
three months of 1995. The Partnership loaned $93,830 and received repayments
from affiliates of $1,603,135 during the first three months of 1994.
In order to induce the Partnership to lend funds to affiliates of the General
Partner, the General Partner agreed to pay (i) the difference between the
interest rate required by the Partnership's amended partnership agreement to be
charged to affiliates and the interest rate actually paid by certain of those
affiliates, and (ii) all points (1.5% or 2% if the loan is junior to other
indebtedness), closing costs and expenses. The Partnership recorded interest
income on affiliate loans of $93,971 and $65,412 for the three months ended
March 31, 1995 and 1994, respectively, of which $6,719 and $3,745, respectively,
was paid or payable by the General Partner. In addition, the General Partner
paid in advance the interest which would be owed for one year pursuant to this
arrangement which totaled $4,300 for the three months ended March 31, 1994. The
Partnership repaid $42,500 of such prepaid interest to the General Partner in
connection with loans repaid during the first three months of 1994. No such
repayment was made during the first three months of 1995.
Payable to affiliates at March 31, 1995 and December 31, 1994 consisted
primarily of a performance incentive fee of $141,647 accrued in prior years,
Partnership general and administrative expenses, asset management fees and
prepaid interest. Except for the performance incentive fee and prepaid interest,
all accrued fees are due and payable from current operations.
NOTE 5.
- - - - ------
The Partnership filed claims with the United States Bankruptcy Court for the
Northern District of Texas, Dallas Division (the "Bankruptcy Court") against
Southmark for damages relating to improper overcharges, breach of contract and
breach of fiduciary duty. The Partnership settled these claims in 1991, and such
settlement was approved by the Bankruptcy Court.
An Order Granting Motion to Distribute Funds to Class 8 Claimants dated April
14, 1995 was issued by the Bankruptcy Court. In accordance with the Order, in
May 1995 the Partnership received in full satisfaction of its claims, $984,649
in cash, and common and preferred stock in the reorganized Southmark currently
valued at approximately $300,000, which amounts represent the Partnership's
pro-rata share of Southmark assets available for Class 8 Claimants.
NOTE 6.
- - - - ------
On May 9, 1995, the Partnership paid down its mortgage note payable by
$4,675,000.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- - - - ------ ---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- - - - -------------------
There has been no significant change in the operations of the Partnership's
properties since December 31, 1994. The Partnership reported net income for
the first three months of 1995 of $459,276 as compared to $269,961 for the first
three months of 1994. Revenues were $2,199,463 for the first three months of
1995, up from $1,938,732 for the same period in 1994. Expenses were $1,740,187
in 1995 as compared to $1,668,771 in 1994.
Net cash provided by operating activities was $1,118,787 for the three months
ended March 31, 1995, a change from $556,806 during the same three month period
in 1994. The Partnership expended $113,874 for capital improvements, $36,393 for
principal payments on the mortgage note payable and $145 for the repurchase of
limited partnership units (net of a decrease in cash segregated for the
repurchase of limited partnership units). The Partnership received $972,000 for
repayment of affiliate loans and $64,099 in collections of principal on mortgage
loan investments to an unaffiliated borrower, resulting in a net increase in
cash of $2,004,474 at March 31, 1995.
RESULTS OF OPERATIONS
- - - - ---------------------
Revenue:
Total revenue increased by $260,731 the first three months of 1995 as compared
to the same period in the prior year. The increase was primarily due to an
increase in rental revenue, as discussed below.
Rental revenue for the three months ended March 31, 1995 increased by $119,895
as compared to the same period in 1994. The increase was mainly due to increases
in occupancy at One Corporate Center III Office Building and AAA Sentry
Mini-Storage. One Corporate Center III was 96% occupied at March 31, 1995 as
compared to 88% at March 31, 1994, resulting in an increase in rental revenue of
approximately $70,000. Rental revenue increased by approximately $25,000 at AAA
Sentry as occupancy increased to 100% at the end of the first quarter of 1995
from 96% for the same period in 1994.
Interest income on the Partnership's mortgage loan investments to an
unaffiliated borrower (the A-Quality Mini-Storage loan) increased by $23,170 for
the three months ended March 31, 1995 in relation to the respective period in
the prior year. The increase was mainly due to an increase in the interest rate
earned on the first lien loan which is based on the prime lending rate of Bank
of America.
Interest income on mortgage loans investments - affiliates increased by $28,559
for the three months ended March 31, 1995 as compared to the prior year. The
increase was the result of higher interest rates earned on outstanding loans
which are based on the prime lending rate of Bank of America.
Other interest income for the three months ended March 31, 1995 increased by
$58,592 as compared to the same period in the prior year. The increase was
primarily the result of higher average cash balances available for short-term
investment in 1995. The Partnership held $9.2 million of cash and cash
equivalents at March 31, 1995 as compared to $6.5 million at March 31, 1994. In
addition, there was a slight increase in interest rates earned on invested cash
in 1995.
In 1995, the Partnership received a $30,515 property tax refund for AAA Century
Self Storage as a result of an appeal filed on behalf of the property. No such
tax refund was received in the first quarter of 1994.
Expenses:
Total expenses increased by $71,416 for the first three months of 1995 as
compared to the same period in the prior year, as discussed below.
Property taxes increased by $21,926 for the three months ended March 31, 1995 in
relation to the comparable period in the prior year. The increase was the result
of an increase in the assessed taxable value of One Corporate Center I and III
Office Buildings by taxing authorities.
Personnel costs for the first three months of 1995 increased by $31,961 as
compared to the first three months of 1994. The increase was due to an increase
in compensation paid to on-site personnel at all of the properties.
General and administrative expenses decreased by $26,562 for the three months
ended March 31, 1995 as compared to the same period in 1994. In the first three
months of 1994, the Partnership incurred approximately $23,000 more in legal
expenses than in 1995. The majority of these expenses were attributable to a
law suit against the borrower on the A-Quality Mini-Storage loan and a suit
against the officers and directors of the original general partner and the
Partnership's former auditors.
LIQUIDITY AND CAPITAL RESOURCES
- - - - -------------------------------
The Partnership generated $1,118,787 of cash through operating activities in the
first quarter of 1995 as compared to $556,806 in the first quarter of 1994. The
increase in 1995 was partially due to an increase in cash received from tenants
(see discussion of the increase in rental revenue above). In addition, there was
a decrease in cash paid to suppliers and cash paid to affiliates due to the
timing of the payment of invoices at the end of the quarter.
The Partnership expended $113,874 and $59,810 for capital improvements to its
properties in 1995, and 1994, respectively. The increase in 1995 was mainly due
to costs for replacing a roof at Military Trail Mini-Storage.
In 1995, the Partnership received $64,099 in payments on its mortgage loan
investment to an unaffiliated borrower. The loan was modified effective January
1994; however, no principal payments were received on the loan until April 1994.
Prior to the modification, interest only from the excess cash flow of the
property was paid on the loan.
The Partnership collected principal on loans to affiliates (net of loans made)
of $972,000 and $1,509,305 in the first three months of 1995 and 1994,
respectively.
Short-term liquidity:
- - - - --------------------
At March 31, 1995, the Partnership held cash and cash equivalents of $9,200,884.
This balance provides a reasonable level of working capital for the
Partnership's immediate needs in operating its properties.
For the Partnership as a whole, management projects positive cash flow from
operations in 1995. The Partnership has budgeted $641,000 for necessary capital
improvements for all properties in 1995 which is expected to be funded from
available cash reserves or from operations of the properties.
In May 1995, the Partnership paid down its mortgage note payable by $4,675,000.
The Partnership is currently negotiating to secure a $5 million line of credit.
If a line of credit is obtained, available cash reserves will be used to pay off
the remaining balance of the Partnership's mortgage note payable. If this
occurs, the Partnership will evaluate its cash reserves to determine when
distributions to the partners will be resumed.
Long-term liquidity:
- - - - -------------------
The Partnership's only debt is not due until 1999. As previously discussed, the
remaining balance of this loan may be paid off in 1995 if a line of credit is
obtained.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
- - - - ------ -----------------
Robert Lewis v. McNeil Real Estate Fund XXVII, L.P. and McNeil Partners, L.P.,
- - - - ------------------------------------------------------------------------------
Civil Action No. 13287 (Del. Ch.). This complaint alleged, among other things,
that the General Partner caused the Partnership to loan money to affiliated
partnerships at rates lower than the Partnership's cost of borrowing, which the
plaintiff alleged constituted a breach of the General Partner's fiduciary
duties. The complaint alleged that the affiliate loans were designed to enable
the affiliated partnerships to continue in business so as to enable the General
Partner to continue collecting fees from them. An answer to the complaint was
filed on February 3, 1994, denying the material averments of wrongdoing and
asserting affirmative defenses. In 1995, the plaintiff and the Partnership
executed a Stipulation and Order of Dismissal, which dismissed the action
without prejudice.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- - - - ------ --------------------------------
(a) Exhibits.
<TABLE>
<CAPTION>
Exhibit
Number Document Description
------- --------------------
<S> <C>
4.2 Amended and Restated Partnership Agreement of McNeil XXVII, L.P. dated March 30, 1992.
(Incorporated by reference to the Current Report of the registrant on Form 8-K dated
March 30, 1992, as filed on April 10, 1992).
10. Mutual Release and Settlement Agreement between Southmark Storage Associates Limited
Partnership and McNeil Real Estate Fund XXVII, L.P.
11. Statement regarding computation of Net Income per Hundred Limited Partnership Units.
Net income per one hundred limited partnership units is computed by dividing net income
income allocated to the limited partners by the weighted average number of limited
partnership units outstanding (expressed in hundreds). Per unit information has been
computed based on 53,109 and 53,483 weighted average limited partnership units (in
hundreds) outstanding in 1995 and 1994.
</TABLE>
(b) Reports on Form 8-K. There were no reports on Form 8-K filed during
the quarter ended March 31, 1995.
<PAGE>
MCNEIL REAL ESTATE FUND XXVII, 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:
<TABLE>
<CAPTION>
<S> <C>
McNEIL REAL ESTATE FUND XXVII, L.P.
By: McNeil Partners, L.P., General Partner
By: McNeil Investors, Inc., General Partner
May 15, 1995 By: /s/ Donald K. Reed
- - - - ---------------------------- -------------------------------------------
Date Donald K. Reed
President and Chief Executive Officer
May 15, 1995 By: /s/ Robert C. Irvine
- - - - ---------------------------- -------------------------------------------
Date Robert C. Irvine
Chief Financial Officer of McNeil Investors, Inc.
Principal Financial Officer
May 15, 1995 By: /s/ Carol A. Fahs
- - - - ---------------------------- --------------------------------------------
Date Carol A. Fahs
Chief Accounting Officer of McNeil Real Estate
Management, Inc.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1994 DEC-31-1995
<PERIOD-END> DEC-31-1994 MAR-31-1995
<CASH> 7,196,410 9,200,884
<SECURITIES> 0 0
<RECEIVABLES> 525,287 523,822
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 31,460,335 31,574,209
<DEPRECIATION> (5,538,346) (5,909,359)
<TOTAL-ASSETS> 39,501,853 39,862,522
<CURRENT-LIABILITIES> 0 0
<BONDS> 6,726,266 6,689,873
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 31,948,150 32,407,426
<TOTAL-LIABILITY-AND-EQUITY> 39,501,853 39,862,522
<SALES> 7,234,070 1,931,262
<TOTAL-REVENUES> 7,974,099 2,199,463
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 5,852,941 1,553,309
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 765,595 186,878
<INCOME-PRETAX> 1,355,563 459,276
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 1,355,563 459,276
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,355,563 459,276
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
