UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark one)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 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 0-17589
NTS-PROPERTIES VII, LTD.
(Exact name of registrant as specified in its charter)
Florida 61-1119232
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
10172 Linn Station Rd.
Louisville, Kentucky 40223
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number,
including area code (502) 426-4800
Not Applicable
Former name, former address and former fiscal year,
if changed since last report
Indicate by check mark whether the registrant (l) 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>
TABLE OF CONTENTS
Pages
PART I
Item 1.Financial Statements
Balance Sheets and Statement of Partners' Equity
as of September 30, 1995 and December 31, 1994 3
Statements of Operations
For the three months and nine months ended
September 30, 1995 and 1994 4
Statements of Cash Flows
For the three months and nine months ended
September 30, 1995 and 1994 5
Notes To Financial Statements 6-7
Item 2.Management's Discussion and Analysis of Financial
Condition and Results of Operations 8-12
PART II
1. Legal Proceedings 13
2. Changes in Securities 13
3. Defaults upon Senior Securities 13
4. Submission of Matters to a Vote of Security Holders 13
5. Other Information 13
6. Exhibits and Reports on Form 8-K 13
Signatures 14
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
NTS-PROPERTIES VII, LTD.
BALANCE SHEETS AND STATEMENT OF PARTNERS' EQUITY
<CAPTION>
As of As of
September 30, 1995 December 31, 1994*
ASSETS
<S> <C> <C>
Cash and equivalents $ 257,418 $ 515,376
Cash and equivalents - restricted 116,970 53,219
Investment securities 205,188 --
Accounts receivable 9,923 22,575
Land, buildings and amenities,
net 11,540,332 11,902,498
Other assets 170,007 184,211
---------- ----------
$12,299,838 $12,677,879
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Mortgages payable $ 5,545,346 $ 5,648,524
Accounts payable - operations 84,367 67,815
Accounts payable - construction -- 52,499
Distributions payable 64,471 64,471
Security deposits 35,380 37,342
Other liabilities 79,126 --
---------- ----------
5,808,690 5,870,651
Partners' equity 6,491,148 6,807,228
---------- ----------
$12,299,838 $12,677,879
========== ==========
</TABLE>
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
<S> <C> <C> <C>
PARTNERS' EQUITY
Capital contributions, net
of offering costs
(638,265 units) $ 10,935,700 $ 100 $ 10,935,800
Net income (loss) - prior
years (2,449,722) (24,744) (2,474,466)
Net loss - current year (121,441) (1,227) (122,668)
Cash distributions
declared to date (1,829,043) (18,475) (1,847,518)
------------ ----------- ------------
Balances at September 30,
1995 $ 6,535,494 $ (44,346) $ 6,491,148
============ =========== ============
*Reference is made to the audited financial statements in the Form 10-K as
filed with the Commission on March 25, 1995.
</TABLE>
<PAGE>
<TABLE>
NTS-PROPERTIES VII, LTD.
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 506,494 $ 479,173 $ 1,461,744 $ 1,382,562
Interest and other income 3,155 4,747 10,256 16,699
---------- ---------- ---------- ----------
509,649 483,920 1,472,000 1,399,261
Expenses:
Operating expenses 141,718 131,897 354,903 330,989
Operating expenses - affiliated 62,291 73,918 184,864 197,295
Amortization of initial leasing
costs 1,189 4,223 5,629 15,094
Write-off of unamortized tenant
improvements -- 41,739 -- 41,739
Interest expense 116,880 118,383 352,830 347,939
Management fees 26,134 24,831 75,687 72,053
Real estate taxes 26,828 28,756 79,546 81,108
Professional and administrative
expenses 14,338 21,136 42,040 48,988
Professional and administrative
expenses - affiliated 25,049 24,093 74,505 68,300
Depreciation and amortization 136,978 164,960 424,664 504,319
--------- --------- --------- ---------
551,405 633,936 1,594,668 1,707,824
--------- --------- --------- ---------
Net loss $ (41,756) $ (150,016)$ (122,668)$ (308,563)
========= ========= ========= =========
Net loss allocated to the limited
partners $ (41,338) $ (148,516)$ (121,441)$ (305,477)
========= ========= ========= ========
Net loss per limited partnership
unit $ (.06) $ (.23)$ (.19)$ (.48)
========= ========= ========= ========
Weighted average number of units 638,265 638,265 638,265 638,265
========= ========= ======== ========
</TABLE>
<PAGE>
<TABLE>
NTS-PROPERTIES VII, LTD.
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (41,756) $ (150,016) $ (122,668) $ (308,563)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Accrued interest on investment
securities (1,502) -- (2,825) --
Amortization of initial leasing
costs 1,189 4,223 5,629 15,094
Write-off unamortized tenant
improvements -- 41,739 -- 41,739
Depreciation and amortization 136,978 164,960 424,664 504,319
Changes in assets and liabilities:
Cash and equivalents - restricted (20,794) (69,500) (63,751) (97,973)
Accounts receivable 9,896 96,894 12,652 35,711
Other assets 8,113 (17,438) 2,168 (59,794)
Accounts payable - operations 18,811 (33,154) 16,552 (15,295)
Security deposits (1,110) (1,565) (1,962) (4,831)
Other liabilities 26,828 28,764 79,126 79,626
--------- -------- -------- --------
Net cash provided by operating
activities 136,653 64,907 349,585 190,033
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to land, buildings and
amenities (12,785) (171,164) (56,089) (212,987)
(Decrease in) additions to accounts
payable - construction (27,421) 24,627 (52,499) 62,401
Purchase of investment securities (102,500) -- (202,363) --
--------- -------- --------- --------
Net cash used in investing
activities (142,706) (146,537) (310,951) (150,586)
--------- -------- --------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Cash distributions (64,471) (64,471) (193,414) (193,414)
Additions to loan costs -- (9,251) -- (17,951)
Increase in note payable -- 70,793 -- 76,427
Principal payments on mortgages
and note payable (35,119) (94,710) (103,178) (129,829)
Net joint venture capital
contribution -- 1,382 -- 1,382
-------- -------- -------- --------
Net cash used in financing
activities (99,590) (96,257) (296,592) (263,385)
-------- -------- -------- --------
Net decrease in cash and
equivalents (105,643) (177,887) (257,958) (223,938)
CASH AND EQUIVALENTS, beginning of
period 363,061 752,205 515,376 798,256
-------- -------- --------- --------
CASH AND EQUIVALENTS, end of period $ 257,418 $ 574,318 $ 257,418 $ 574,318
======== ======== ========= ========
Interest paid on a cash basis $ 117,049 $ 117,859 $ 353,328 $ 347,415
======== ======== ========= =========
</TABLE>
<PAGE>
NTS-PROPERTIES VII, LTD.
NOTES TO FINANCIAL STATEMENTS
The financial statements included herein should be read in conjunction with
the Partnership's 1994 Annual Report. In the opinion of the general
partner, all adjustments (only consisting of normal recurring accruals)
necessary for a fair presentation have been made to the accompanying
financial statements for the three months and nine months ended September
30, 1995 and 1994.
1.Cash and Equivalents - Restricted
Cash and equivalents - restricted represents funds received for
residential security deposits and funds which have been escrowed with
mortgage companies for property taxes in accordance with the loan
agreements.
2.Investment Securities
Investment securities represent investments in Certificates of Deposit
or securities issued by the U.S. Government with initial maturities of
greater than three months. The investments are carried at cost which
approximates market value. The Partnership intends to hold the
securities until maturity. The following provides details regarding the
investments held at September 30, 1995:
Amortized Maturity Value At
Type Cost Date Maturity
U.S. Treasury Bill $102,688 10/19/95 $103,000
Certificate of Deposit 102,500 01/05/96 103,968
------- -------
$205,188 $206,968
======= =======
The Partnership held no investment securities with initial maturities
greater than three months at December 31, 1994.
3.Mortgages Payable
Mortgages payable consist of the following:
September 30, December 31,
1995 1994
Mortgage payable to an insurance
company, bearing interest at a
fixed rate of 8.5%, due November
15, 2005, secured by land and
building $ 1,432,826 $ 1,497,396
Mortgage payable to an insurance
company, bearing interest at a
fixed rate of 8.375%, due October
5, 2002, secured by land and
buildings 3,144,868 3,174,392
Mortgage payable to an insurance
company, bearing interest at a
fixed rate of 8.375%, due October
5, 2002, secured by land and
buildings 967,652 976,736
---------- ----------
$ 5,545,346 $ 5,648,524
========== ==========
<PAGE>
4.Related Party Transactions
Property management fees of $75,687 and $72,053 were paid to NTS
Development Company, an affiliate of the general partner, during the
nine months ended September 30, 1995 and 1994, respectively. The fee is
paid monthly in an amount equal to 5% of the gross revenues from the
residential properties and 6% of the gross revenues from the commercial
property pursuant to an agreement with the Partnership. Also, as
permitted by the partnership agreement, NTS Development Company will
receive a repair and maintenance fee equal to 5.9% of costs incurred
which related to capital improvements. The Partnership has incurred
$3,337 and $12,004 as a repair and maintenance fee during the nine
months ended September 30, 1995 and 1994, respectively, and has
capitalized this cost as part of land, buildings and amenities. The
Partnership also was charged the following amounts from NTS Development
Company for the nine months ended September 30, 1995 and 1994. These
charges include items which have been expensed as operating expenses -
affiliated or professional and administrative expenses - affiliated and
items which have been capitalized as other assets or as land, buildings
and amenities. The charges were as follows:
1995 1994
Leasing $ 45,468 $ 53,869
Administrative 92,188 84,822
Property manager 119,847 124,266
Other 1,866 4,781
-------- --------
$ 259,369 $ 267,738
======== ========
5.Reclassification of 1994 Financial Statements
Certain reclassifications have been made to the September 30 and
December 31, 1994 financial statements to conform with the September 30,
1995 classifications. These reclassifications have no effect on
previously reported operations.
<PAGE>
Item 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
The occupancy levels at the Partnership's properties as of September 30 were
as follows:
1995 1994
Wholly-Owned Properties
The Park at the Willows 96% 88%
Park Place Apartments Phase II 92% 95%
Property Owned in Joint Venture
with NTS-Properties IV and NTS-
Properties Plus Ltd. (ownership
% at September 30, 1995)
Blankenbaker Business Center 1A (31%) 100% 100%
Rental and other income generated by the Partnership's properties for the
three months and nine months ended September 30, 1995 and 1994 was as
follows:
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Wholly-Owned Properties
The Park at the Willows $ 79,340 $ 80,557 $ 235,405 $ 243,865
Park Place Apartments
Phase II $ 354,025 $ 335,729 $1,010,879 $ 944,495
Property Owned in Joint
Venture with NTS-Properties
IV and NTS-Properties Plus
Ltd. (ownership % at
September 30, 1995)
Blankenbaker Business Center
1A (31%) $ 73,552 $ 64,456 $ 217,990 $ 197,346
The Park at the Willows' occupancy increased from 88% at September 30, 1994
to 96% at September 30, 1995. Average occupancy for the nine month period
ended September 30 remained constant at 92%. Average occupancy for the
three month period ended September 30 increased from 91% in 1994 to 95% in
1995. The decrease in rental and other income at The Park at the Willows
for the nine months ended September 30, 1995 as compared to the same period
in 1994 was due to a decrease in income from fully furnished units. The
change in rental and other income for the three month period was not
significant.
<PAGE>
Results of Operations - Continued
Park Place Apartments Phase II's occupancy decreased from 95% at September
30, 1994 to 92% at September 30, 1995. Average occupancy for the nine
months ended September 30 increased from 87% in 1994 to 90% in 1995.
Average occupancy for the three month period increased from 89% in 1994 to
94% in 1995. Rental and other income increased at Park Place Apartments
Phase II for the three months and nine months ended September 30, 1995 as
compared to the same periods in 1994 as a result of the increased average
occupancy and increased rental rates.
A wholly-owned subsidiary of The Prudential Insurance Company of America
(Prudential Service Bureau, Inc.) has leased 100% of Blankenbaker Business
Center 1A. During 1994, Prudential Service Bureau, Inc. signed a lease
renewal and expansion. The renewal extended the current lease through July
2005. With the expansion, the tenant occupied 100% of the business center
during the third quarter of 1994. Blankenbaker Business Center 1A's rental
and other income increased for the three months and nine months ended
September 30, 1995 as compared to the three months and nine months ended
September 30, 1994 as a result of the lease renewal and expansion with
Prudential Service Bureau, Inc.
Current occupancy levels are considered adequate to continue the operation
of the Partnership's properties without any additional financing. See the
Liquidity and Capital Resources section of Item 2 for a discussion regarding
the cash requirements of the Partnership's current debt financings.
Interest and other income includes interest income from investments made by
the Partnership with excess cash. The decrease in interest income for the
three months and nine months ended September 30, 1995 as compared to the
same periods in 1994 is a result of decreased cash being available for
investment as a result of a $500,000 capital contribution made to the
Blankenbaker Business Center Joint Venture during the third quarter of 1994.
Operating expenses increased for the three months and nine months ended
September 30, 1995 as compared to the same periods in 1994 primarily as a
result of increased replacement costs (carpet, vinyl and wallcovering) at
Park Place Apartments Phase II and increased deferred leasing commission
amortization at Blankenbaker Business Center 1A. The commission was a
result of Prudential Service Bureau, Inc.'s lease renewal and expansion
(discussed above). Leasing commissions are amortized over the term of the
lease to which they apply.
Operating expenses - affiliated decreased for the three months and nine
months ended September 30, 1995 as compared to the same periods in 1994
primarily as a result of decreased leasing costs at Blankenbaker Business
Center 1A. Operating expenses - affiliated decreased for the nine month
period also as a result of decreased property management salaries at the
Partnership's residential properties. Operating expenses - affiliated
remained fairly constant at the Partnership's residential properties for the
three month period.
Amortization of capitalized leasing costs represents the amortization of
various costs which were capitalized during the initial leasing and start-up
period of Park Place Apartments Phase II. The amortization of capitalized
leasing costs has decreased for the three months and nine months ended
September 30, 1995 as compared to the same periods in 1994 as a result of
a portion of the costs capitalized during start-up having become fully
amortized.
The 1994 write-off of unamortized tenant improvements is a result of the
approximately 15,000 square foot expansion and lease renewal of Prudential
Service Bureau, Inc., the tenant which now occupies 100% of Blankenbaker
Business Center 1A. As a condition of the lease renewal and expansion, it
was agreed that the area into which the tenant expanded would be renovated.
<PAGE>
Results of Operations - Continued
Changes to current tenant improvements are a typical part of any lease
negotiation. Improvements generally include a revision to the current floor
plan to accommodate a tenant's needs, new carpeting and paint and/or
wallcovering. In order to complete the renovations, it is sometimes
necessary to replace improvements which had not been fully depreciated.
This results in a write-off of unamortized tenant improvements.
The increase in interest expense for the nine months ended September 30,
1995 as compared to the same period in 1994 is the result of the higher
interest rate on the permanent financing obtained by Blankenbaker Business
Center Joint Venture in November 1994. The permanent financing replaced a
$4,715,000 note payable which bore interest at a variable rate of Prime +
1%. The Prime Rate ranged from 6% to 7.75% during the first nine months of
1994. See Note 3 of the Partnership's financial statements for details
regarding the Partnership's debt. Interest expense remained fairly constant
for the three months ended September 30, 1995 as compared to the three
months ended September 30, 1994.
Management fees are calculated as a percentage of cash collections; however,
revenue for reporting purposes is on the accrual basis. As a result, the
fluctuations of revenues between periods will differ from the fluctuations
of management fee expense.
Real estate taxes have remained fairly constant for the three months and
nine months ended September 30, 1995 as compared to the same periods in
1994.
The decrease in professional and administrative expenses for the three
months and nine months ended September 30, 1995 as compared to the same
periods in 1994 is due to the fact that the 1994 expense includes a write-
off of unamortized loan costs which were associated with the Blankenbaker
Business Center Joint Venture's $1.1 million note payable. The unamortized
loan fees were expensed due to the fact that the note was retired prior to
its maturity. There was no similar expense in 1995.
Professional and administrative expenses - affiliated increased for the nine
months ended September 30, 1995 as compared to the same period in 1994
primarily as a result of increased salaries. Professional and
administrative expenses - affiliated have remained fairly constant for the
three months ended September 30, 1995 as compared to the same period in
1994.
Depreciation and amortization decreased for the three months and nine months
ended September 30, 1995 as compared to the three months and nine months
ended September 30, 1994 as a result of assets with shorter lives at Park
Place Apartments Phase II having become fully depreciated and as a result
of a portion of the original tenant improvements at Blankenbaker Business
Center 1A becoming fully depreciated since September 30, 1994. The decrease
in depreciation and amortization for the three month and nine month periods
is partially offset by depreciation on the new tenant finish improvements
at Blankenbaker Business Center 1A. Depreciation and amortization remained
fairly constant at The Park at the Willows for the three months and nine
months ended September 30, 1995 as compared to the same periods ended
September 30, 1994.
<PAGE>
Liquidity and Capital Resources
Cash provided by operations was $349,585 and $190,033 for the nine months
ended September 30, 1995 and 1994, respectively. These funds in conjunction
with cash on hand were used to pay a 2% (annualized) cash distribution of
$193,414 (1995 and 1994). The annualized distribution rate is calculated
as a percent of the original capital contribution. The limited partners
received 99% and the general partner received 1% of these distributions.
The primary source of future liquidity and distributions is expected to be
derived from cash generated by the Partnership's properties after adequate
cash reserves are established for future leasing and tenant finish costs.
As of September 30, 1995, the Partnership had two mortgage loans each with
an insurance company in the amount of $3,144,868 and $967,652. Both
mortgages are due October 5, 2002, currently bear interest at a fixed rate
of 8.375% and are secured by a first mortgage on Park Place Apartments Phase
II. Current monthly principal payments on both mortgages are based upon a
27-year amortization schedule. The outstanding principal balance at
maturity based on the current rate of amortization would be $3,607,560
($2,758,723 and $848,837).
As of September 30, 1995, Blankenbaker Business Center 1A, a joint venture
between the Partnership, NTS-Properties IV and NTS-Properties Plus Ltd.,
affiliates of the General Partner, had a mortgage payable with an insurance
company (obtained November 1994) in the amount of $4,571,876. The mortgage
is recorded as a liability of the Joint Venture and is secured by the assets
of the Joint Venture. The Partnership's proportionate interest in the
mortgage at September 30, 1995 is $1,432,826. The mortgage bears interest
at a fixed rate of 8.5% and is due November 15, 2005. Current monthly
principal payments are based upon an 11-year amortization schedule. At
maturity, the mortgage will have been repaid based on the current rate of
amortization.
The majority of the Partnership's cash flow is derived from operating
activities. Cash flows used in investing activities are for capital
improvements at the Partnership's properties and decreases in accounts
payable - construction. These improvements are funded by cash flow from
operations and capital contributions as previously discussed in the
Partnership's Form 10-K for the year ended December 31, 1994. Cash flows
used in investing activities are also for the purchase of investment
securities. As part of its cash management activities, the Partnership has
purchased Certificates of Deposit or securities issued by the U.S.
Government with initial maturities of greater than three months to improve
the return on its excess cash. The Partnership intends to hold the
securities until maturity. Cash flows provided by investing activities are
a result of increases in accounts payable - construction. Cash flows used
in financing activities are for cash distributions, principal payments on
mortgages and note payable and payment of loan costs. Cash flows provided
by financing activities represent an increase in a note payable. The net
joint venture capital contribution represents the Partnership's capital
contribution to the Blankenbaker Business Center Joint Venture net the
Partnership's proportionate interest in the joint venture's increase in cash
which resulted from capital contributions. The Partnership utilizes the
proportionate consolidation method of accounting for joint venture
properties. The Partnership's interest in the joint venture's assets,
liabilities, revenues and expenses are combined on a line-by-line basis with
the Partnership's own assets, liabilities, revenues and expenses. The
Partnership does not expect any material changes in the mix and relative
cost of capital resources from those in 1994 except that which is discussed
in the following paragraph.
<PAGE>
Liquidity and Capital Resources - Continued
The demand on future liquidity is anticipated to increase in 1995 as
compared to 1994 as a result of the Blankenbaker Business Center Joint
Venture's permanent financing as discussed on page 11. The permanent
financing replaced a $4,715,000 note payable which bore interest at a
variable rate of Prime + 1%. The Prime Rate ranged from 6% to 7.75% during
the first nine months of 1994. It is anticipated that the cash flow from
operations and cash reserves will be sufficient to meet the needs of the
Partnership.
The table below presents that portion of the distributions that represent
a return of capital on a Generally Accepted Accounting Principle basis for
the nine months ended September 30, 1995 and 1994.
Net Loss Cash Return of
Allocated Distributions Capital
Limited Partners:
1995 $ (121,441) $ 191,479 $ 191,479
1994 (305,477) 191,479 191,479
General Partner:
1995 $ (1,227) $ 1,935 $ 1,935
1994 (3,086) 1,935 1,935
In an effort to continue to improve occupancy at the Partnership's
residential properties, the Partnership has an on-site leasing staff,
employees of NTS Development Company, at each of the apartment communities.
The staff handles all on-site visits from potential residents, coordinates
local advertising with NTS Development Company's marketing staff, makes
visits to local companies to promote fully furnished units and works with
current residents on lease renewals.
The lease at Blankenbaker Business Center 1A provides for the tenant to
contribute toward the payment of common area expenses, insurance and real
estate taxes. This lease provision, along with the fact that residential
leases are generally for a period of one year, should protect the
Partnership's operations from the impact of inflation and changing prices.
<PAGE>
PART II. OTHER INFORMATION
1. Legal Proceedings
None
2. Changes in Securities
None
3. Defaults upon Senior Securities
None
4. Submission of Matters to a Vote of Security Holders
None
5. Other Information
None
6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit 27. Financial Data Schedule
(b) Reports on Form 8-K:
No reports on Form 8-K were filed for the three months ended
September 30, 1995.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, NTS-Properties VII, Ltd. has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
NTS-PROPERTIES VII, LTD.
(Registrant)
By:NTS-Properties Associates VII
By:NTS Capital Corporation,
General Partner
/s/ John W. Hampton
John W. Hampton
Senior Vice President
Date: November 10, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET AS OF SEPTEMBER 30, 1995 AND FROM THE STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 374,388
<SECURITIES> 205,188
<RECEIVABLES> 9,923
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 11,540,332
<DEPRECIATION> 0<F2>
<TOTAL-ASSETS> 12,299,838
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 5,545,346
<COMMON> 0
0
0
<OTHER-SE> 6,491,148
<TOTAL-LIABILITY-AND-EQUITY> 12,299,838
<SALES> 1,461,744
<TOTAL-REVENUES> 1,472,000
<CGS> 0
<TOTAL-COSTS> 1,125,293
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 352,830
<INCOME-PRETAX> (122,668)
<INCOME-TAX> 0
<INCOME-CONTINUING> (122,668)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (122,668)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>THE PARTNERSHIP HAS AN UNCLASSIFIED BALANCE SHEET; THEREFORE, THE VALUE
IS $0.
<F2>THIS INFORMATION IS NOT DISCLOSED IN THE PARTNERSHIP'S FORM 10-Q FILING.
</FN>
</TABLE>
