NATIONAL REALTY L P, SC 13D/A, 1998-08-14

NATIONAL REALTY L P
SC 13D/A, 1998-08-14
REAL ESTATE OPERATORS (NO DEVELOPERS) & LESSORS

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<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934
(AMENDMENT NO. 35)

NATIONAL REALTY, L.P.
(Name of Issuer)

UNITS OF LIMITED PARTNERSHIP INTEREST
(Title of Class of Securities)

637-353-301
(CUSIP Number)

ROBERT A. WALDMAN, 10670 N. CENTRAL EXPRESSWAY, SUITE 600, DALLAS, TEXAS 75231
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

JULY 10, 1998
(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rules 13d-1(b)(3) or (4), check the following box [ ].

<PAGE> 2

CUSIP NO. 637-353-301 PAGE 2
- --------------------------------------------------------------------------------

1) Names of Reporting Persons S.S. or
I.R.S. Identification Nos. of Above Persons

AMERICAN REALTY TRUST, INC. 54-0697989
- --------------------------------------------------------------------------------

2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) ......................................................................
(b) ......................................................................
- --------------------------------------------------------------------------------

3) SEC Use Only ..............................................................
- --------------------------------------------------------------------------------

4) Source of Funds (See Instructions) ........................................
- --------------------------------------------------------------------------------

5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
................................................................................

- --------------------------------------------------------------------------------

6) Citizenship or Place of Organization GEORGIA
- --------------------------------------------------------------------------------

7) Sole Voting Power 91,634
Number of
Shares --------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each --------------------------------------------------------------
Reporting 9) Sole Dispositive Power 91,634
Person
With --------------------------------------------------------------
10) Shared Dispositive Power -0-

- --------------------------------------------------------------------------------

11) Aggregate Amount Beneficially Owned by Each Reporting Person 91,634
- --------------------------------------------------------------------------------

12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
................................................................................

- --------------------------------------------------------------------------------

13) Percent of Class Represented by Amount in Row (11) 1.4%

- --------------------------------------------------------------------------------

14) Type of Reporting Person (See Instructions) CO

<PAGE> 3

CUSIP NO. 637-353-301 PAGE 3
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of
Above Persons
BASIC CAPITAL MANAGEMENT, INC. 75-2332719

- --------------------------------------------------------------------------------

3) SEC Use Only ..............................................................

- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions) ........................................

- --------------------------------------------------------------------------------

5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
................................................................................

- --------------------------------------------------------------------------------

6) Citizenship or Place of Organization NEVADA

- --------------------------------------------------------------------------------

7) Sole Voting Power 93,900
Number of
Shares --------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each --------------------------------------------------------------
Reporting 9) Sole Dispositive Power 93,900
Person
With --------------------------------------------------------------
10) Shared Dispositive Power -0-

- --------------------------------------------------------------------------------

11) Aggregate Amount Beneficially Owned by Each Reporting Person 93,900

- --------------------------------------------------------------------------------

12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
................................................................................

- --------------------------------------------------------------------------------

13) Percent of Class Represented by Amount in Row (11) 1.5%

- --------------------------------------------------------------------------------

14) Type of Reporting Person (See Instructions) CO

<PAGE> 4

CUSIP NO. 637-353-301 PAGE 4
- --------------------------------------------------------------------------------

1) Names of Reporting Persons S.S. or I.R.S. Identification Nos.
of Above Persons
BCM HOLDINGS, INC. 75-2664665

- --------------------------------------------------------------------------------

2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) .....................................................................
(b) .....................................................................

- --------------------------------------------------------------------------------

3) SEC Use Only .............................................................

- --------------------------------------------------------------------------------

4) Source of Funds (See Instructions) .......................................

- --------------------------------------------------------------------------------

5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
................................................................................

- --------------------------------------------------------------------------------

6) Citizenship or Place of Organization NEVADA

- --------------------------------------------------------------------------------

7) Sole Voting Power 290,275
Number of
Shares --------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each --------------------------------------------------------------
Reporting 9) Sole Dispositive Power 290,275
Person
With --------------------------------------------------------------
10) Shared Dispositive Power -0-

- --------------------------------------------------------------------------------

11) Aggregate Amount Beneficially Owned by Each Reporting Person 290,275

- --------------------------------------------------------------------------------

12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
................................................................................

- --------------------------------------------------------------------------------

13) Percent of Class Represented by Amount in Row (11) 4.6%

- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) CO

<PAGE> 5

CUSIP NO. 637-353-301 PAGE 5
- --------------------------------------------------------------------------------

1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of
Above Persons
ART HOLDINGS, INC. 75-2663476

- --------------------------------------------------------------------------------

3) SEC Use Only .............................................................

- --------------------------------------------------------------------------------

4) Source of Funds (See Instructions) .......................................

- --------------------------------------------------------------------------------

5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
................................................................................

- --------------------------------------------------------------------------------

6) Citizenship or Place of Organization NEVADA

- --------------------------------------------------------------------------------

7) Sole Voting Power 3,349,535
Number of
Shares --------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each --------------------------------------------------------------
Reporting 9) Sole Dispositive Power 3,349,535
Person
With --------------------------------------------------------------
10) Shared Dispositive Power -0-

- --------------------------------------------------------------------------------

11) Aggregate Amount Beneficially Owned by Each Reporting Person 3,349,535

- --------------------------------------------------------------------------------

12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
................................................................................

- --------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 53.0%

- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) CO

<PAGE> 6

NATIONAL REALTY, L.P.
CUSIP NO. 637-353-301

Item 1. Security and Issuer

Item 1 is hereby amended to read as follows:

This amendment relates to the Units of Limited Partner Interest (the
"Units") of National Realty, L.P., a Delaware limited partnership (the
"Partnership"), and amends the statement on Schedule 13D filed on January 10,
1997. The principal executive offices of the Partnership are located at 10670
North Central Expressway, Suite 600, Dallas, Texas
75231.

Item 2. Identity and Background

Item 2 is hereby amended to read as follows:

This statement is being filed on behalf of American Realty Trust,
Inc. ("ART"), Basic Capital Management, Inc. ("BCM"), BCM Holdings, Inc.
("BHI") and ART Holdings, Inc. ("AHI") (collectively the "Reporting
Persons").

ART, BCM, BHI and AHI may be deemed to constitute a "person" within the
meaning of Section 13 (d) of the Securities Exchange Act of 1934, as amended.
BHI is a wholly-owned subsidiary of Basic Capital Management, Inc. ("BCM"), who
serves as the Advisor and is the largest shareholder of ART. BHI was recently
established for the sole purpose of holding record ownership of the Units
beneficially owned by BCM. AHI is a wholly-owned subsidiary of ART recently
established for the sole purpose of holding record ownership of the Units
beneficially owned by ART.

(I) ART is a real estate investment company organized and existing as a
Georgia corporation. ART's principal business activities include investment in
real estate and in other business ventures. The principal place of business and
principal office of ART is located at 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231.

The following is a list of each executive officer and director of ART:

Name Position(s)
- ---- -----------

<S> <C>
Roy E. Bode Director

Oscar W. Cashwell Director

Al Gonzalez Director

Cliff Harris Director

Karl L. Blaha Director\President
</TABLE>

<PAGE> 7

Name Position(s)
- ---- -----------

<S> <C>
Thomas A. Holland Executive Vice President and
Chief Financial Officer

Randall M. Paulson Executive Vice President

Bruce A. Endendyk Executive Vice President

Robert A. Waldman Senior Vice President, Secretary
and General Counsel

Drew D. Potera Vice President and Treasurer
</TABLE>

Mr. Bode's business address is 2435 E. FM 879, Palmer, Texas 75152.
Mr. Bode's present principal occupation is Vice President for Public
Affairs at the University of Texas Southwestern Medical Center at
Dallas. Mr. Bode is a citizen of the United States of America.

Mr. Cashwell's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Cashwell's present principal
occupation is real estate consultant. Mr. Cashwell is a citizen of the
United States of America.

Mr. Gonzalez' business address is 4455 Alpha Road, Building #2,
Dallas, Texas 75244. Mr. Gonzalez' present principal occupation is
President of AGE Refining, Inc. Mr. Gonzalez is a citizen of the
United States of America.

Mr. Harris's business address is 2838 Woodside Street, Dallas, Texas
75204. Mr. Harris' present principal occupation is President of Energy
Transfer Group, L.L.C. Mr. Harris is a citizen of the United States
of America.

Mr. Blaha's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Blaha's present principal occupation
is Executive Vice President of Carmel Realty, Inc. Mr. Blaha is a
citizen of the United States of America.

Mr. Holland's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Holland's present principal
occupation is Executive Vice President and Chief Financial Officer of
BCM. Mr. Holland is a citizen of the United States of America.

Mr. Paulson's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Paulson's present principal
occupation is President of BCM. Mr. Paulson is a citizen of the United
States of America.

Mr. Endendyk's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Endendyk's present principal
occupation is Executive Vice President of BCM. Mr. Endendyk is a
citizen of the United States of America.

<PAGE> 8

Mr. Waldman's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Waldman's present principal
occupation is Senior Vice President, General Counsel and Secretary of
BCM. Mr. Waldman is a citizen of the United States of America.

Mr. Potera's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Potera's present principal
occupation is Vice President, Treasurer and Securities Manager of BCM.
Mr. Potera is a citizen of the United States of America.

(I) BCM is a corporation organized and existing under the laws of the State
of Nevada. BCM's principal business activity is the provision of advisory
services for real estate investment trusts. Its principal place of business and
principal office is located at 10670 North Central Expressway, Suite 600 Dallas,
Texas 75231.

BCM is owned by Realty Advisors, Inc., a Nevada corporation. Realty
Advisors, Inc. is owned by a trust established for the benefit of the
children of Gene E. Phillips. The directors and executive officers of
BCM are as follows:

Name Position(s) with BCM
- ---- --------------------

<S> <C>
Randall M. Paulson President

Thomas A. Holland Executive Vice President and
Chief Financial Officer

Clifford C. Towns, Jr. Executive Vice President - Finance

Karl L. Blaha Executive Vice President -
Commercial Asset Management

Bruce A. Endendyk Executive Vice President

A. Cal Rossi, Jr. Executive Vice President

Cooper B. Stuart Executive Vice President

Dan S. Allred Senior Vice President -
Land Development

Robert A. Waldman Senior Vice President,
General Counsel and Secretary

Drew D. Potera Vice President, Treasurer
and Securities Manager

Mickey Ned Phillips Director

Ryan T. Phillips Director
</TABLE>

<PAGE> 9

Information with respect to Paulson, Holland, Blaha, Endendyk, Waldman and
Potera is disclosed in (I) above.

Mr. Towns' business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Towns' present principal occupation is
Executive Vice President - Finance of BCM. Mr. Towns is a citizen of
the United States of America.

Mr. Rossi's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Rossi's present principal occupation
is Executive Vice President of BCM. Mr. Rossi is a citizen of the
United States of America.

Mr. Stuart's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Stuart's present principal
occupation is Executive Vice President of BCM. Mr. Stuart is a citizen
of the United States of America.

Mr. Allred's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Allred's present principal
occupation is Senior Vice President - Land Development of BCM. Mr.
Allred is a citizen of the United States of America.

Mickey Ned Phillips' business address is 264 Rolling Hills Circle,
Gaffney, South Carolina 29340. Mr. M. Phillips' present principal
occupation is owner of Phillips Remodeling Co. Mr. M. Phillips is a
citizen of the United States of America.

Ryan T. Phillips' business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. R. Phillips' present principal
occupation is an independent real estate investor. Mr. R. Phillips is
a citizen of the United States of America.

(II) BHI is a corporation organized and existing under the laws of the
State of Nevada. BHI is a wholly-owned subsidiary of BCM. BHI's principal
business activity is the holding of record ownership of Units beneficially owned
by BCM. Its principal place of business and principal office is located at 10670
North Central Expressway, Suite 600, Dallas, Texas. The directors and executive
officers of BHI are as follows:

Name Position(s)
- ---- -----------

<S> <C>
Thomas A. Holland Director/President and
Chief Financial Officer

Robert A. Waldman Director/Secretary

Drew D. Potera Director/Treasurer
</TABLE>

<PAGE> 10

Information with respect to Messrs. Holland, Waldman and Potera is
disclosed in (I) above.

(III) AHI is a corporation organized and existing under the laws of the
State of Nevada. AHI is a wholly-owned subsidiary of ART. AHI's principal
business activity is the holding of record ownership of Units beneficially owned
by ART. Its principal place of business and principal office is located at 10670
North Central Expressway, Suite 600, Dallas, Texas. The directors and executive
officers of AHI are as follows:

Name Position(s)
- ---- -----------

<S> <C>
Karl L. Blaha Director\President

Thomas A. Holland Vice President and
Chief Financial Officer

Robert A. Waldman Director\Secretary

Drew D. Potera Director\Treasurer
</TABLE>

Information with respect to Messrs. Blaha, Holland, Waldman and Potera is
disclosed in (I) above.

During the last five (5) years, (i) none of the persons enumerated in (I)
through (III) above has been convicted in a criminal proceeding (excluding
traffic violations and similar misdemeanors) and (ii) none of such persons was a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.

<PAGE> 11

Item 5. Interest in Securities of the Issuer

Item 5 is hereby amended to read as follows:

(a) Share Ownership

The following tables show the Units owned directly and beneficially by
the Reporting Persons on the date of this statement:

Units Owned Directly

Number of Percent of
Name Units Class(1)
- ---- --------- ----------

<S> <C> <C>
ART 91,634 1.4%
BCM 93,900 1.5%
BHI 290,275 4.6%
AHI 3,349,535 53.0%

TOTAL 3,825,344 60.5%

</TABLE>

Units Owned Beneficially

Number of Percent of
Name Units Class(1)
- ---- --------- ----------

<S> <C> <C>
ART 91,634 1.4%
BCM 93,900 1.5%
BHI 290,275 4.6%
AHI 3,349,535 53.0%
Al Gonzalez (2) 91,634 1.4%
Roy E. Bode (2) 91,634 1.4%
Cliff Harris (2) 91,634 1.4%
Oscar W. Cashwell (2) 91,634 1.4%
Karl L. Blaha (2)(5) 3,441,169 54.4%
Mickey Ned Phillips (3) 93,900 1.5%
Ryan T. Phillips (3) 93,900 1.5%
Thomas A. Holland (3) 290,275 4.6%
Robert A. Waldman (4)(5) 3,639,810 57.6%
Drew D. Potera (4)(5) 3,639,810 57.6%

Total Units beneficially
owned by Reporting Persons 3,825,344 60.5%

</TABLE>

(1) Percentage calculations are based upon 6,321,622 Units
outstanding at July 31, 1998. Total and addends may not match
due to rounding.

(2) May be deemed to be a beneficial owner of the Units held
directly by ART by virtue of the relationship to ART described
in Item 2.

<PAGE> 12

(3) May be deemed to be a beneficial owner of the Units held
directly by BCM by virtue of the relationship to the BCM
described in Item 2.

(4) May be deemed to be a beneficial owner of the Units held
directly by BHI by virtue of the relationship to the BHI
described in Item 2.

(5) May be deemed to be a beneficial owner of the Units held
directly by AHI by virtue of the relationship to AHI described
in Item 2.

(b) Voting and Dispositive Power

Each of the directors of ART share voting and dispositive power over
the 91,634 Units held by ART. Each of the directors of BCM share voting and
dispositive power over the 93,900 Units held by BCM. Each of the directors of
BHI exercise voting and dispositive power over the 290,275 Units held by BHI.
Each of the directors of AHI exercise voting and dispositive power over the
3,349,535 Units held by AHI.

The following table lists the purchase transactions in the Units that
were effected by the Reporting Persons since the last Amendment filing.

Reporting Number Price Type of
Person Date of Units Per Unit Transaction
- --------- -------- -------- -------- -----------

<S> <C> <C> <C> <C>
BCM 05/12/98 200 $18.750 Open Market
BCM 05/13/98 500 $18.750 Open Market
BCM 05/13/98 300 $18.750 Open Market
BCM 05/15/98 400 $18.750 Open Market
BCM 05/19/98 1,300 $18.625 Open Market
BCM 05/21/98 1,000 $18.750 Open Market
BCM 05/21/98 500 $18.875 Open Market
BCM 05/21/98 1,300 $ 18.50 Open Market
BCM 05/22/98 400 $ 19.00 Open Market
BCM 05/22/98 1,000 $18.875 Open Market
BCM 05/26/98 1,800 $18.875 Open Market
BCM 05/27/98 1,400 $18.875 Open Market
BCM 05/28/98 100 $18.875 Open Market
BCM 05/29/98 100 $18.875 Open Market
BCM 06/01/98 1,000 $18.875 Open Market
BCM 06/01/98 400 $18.875 Open Market
BCM 06/02/98 100 $18.875 Open Market
BCM 06/03/98 1,000 $18.875 Open Market
BCM 06/09/98 900 $18.875 Open Market
BCM 06/09/98 100 $18.875 Open Market
BCM 06/09/98 300 $18.875 Open Market
BCM 06/15/98 400 $19.250 Open Market
BCM 06/16/98 1,200 $19.250 Open Market
BCM 06/16/98 800 $19.250 Open Market
BCM 06/17/98 200 $19.250 Open Market
</TABLE>

<PAGE> 13

Reporting Number Price Type of
Person Date of Units Per Unit Transaction
- --------- -------- -------- -------- -----------

<S> <C> <C> <C> <C>
BCM 06/18/98 400 $ 19.250 Open Market
BCM 06/19/98 1,100 $ 19.250 Open Market
BCM 06/22/98 100 $ 19.250 Open Market
BCM 06/22/98 400 $ 19.250 Open Market
BCM 06/24/98 1,000 $ 19.50 Open Market
BCM 06/25/98 400 $ 19.50 Open Market
BCM 06/26/98 3,000 $ 19.50 Open Market
BCM 06/26/98 1,600 $ 19.50 Open Market
BCM 06/29/98 1,000 $ 19.50 Open Market
BCM 06/30/98 800 $ 19.50 Open Market
BCM 07/09/98 3,000 $19.9375 Open Market
BCM 07/09/98 1,200 $ 19.875 Open Market
BCM 07/09/98 100 $ 20.00 Open Market
BCM 07/10/98 200 $ 20.00 Open Market

</TABLE>

Item 6. Contracts, Arrangements, Understandings or Relationships with respect to
Securities of the Issuer.

Item 6 is hereby amended to read as follows:

ART has pledged 2,000 Units to BA Investment Services, pledged 450 Units to
Bear Stearns, pledged 49,784 Units to Dean Witter, pledged 4,000 Units to Global
Securities, pledged 5,000 Units to Hambrecht & Quist, pledged 300 Units to JC
Bradford, pledged 400 Units to Morgan Keegan, pledged 23,700 Units to Dain
Rauscher, 4,000 Units to Raymond James, and pledged 2,000 Units to Southland
Securities in stock margin accounts maintained by it with such brokers.

BCM has pledged 4,200 Units to Advest, Inc., pledged 7,300 Units to Cutter
& Company, pledged 5,000 Units to Hambrecht & Quist, pledged 8,200 Units to
McDonald & Co., pledged 11,200 Units to Dain Raischer, pledged 1,800 Units to
Raymond James, pledged 4,300 Units to Regions Inv., pledged 6,000 Units to
Robert Baird, pledged 14,100 Units to Southland Securities, pledged 26,800 Units
to Tucker Anthony and pledged 5,000 Units to Wachovia in stock margin accounts
maintained by it with such brokers.

BHI has pledged 290,275 Units pursuant to a loan agreement with CS First
Boston.

AHI has pledged 3,349,535 Units pursuant to a loan agreement with CS First
Boston.

<PAGE> 14

SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

Dated: August 13, 1998.

AMERICAN REALTY TRUST, INC.

By: /s/ Karl L. Blaha
------------------------------------
Karl L. Blaha
President

BASIC CAPITAL MANAGEMENT, INC.

By:
------------------------------------
Drew D. Potera
Vice President and Treasurer

BCM HOLDINGS, INC.

By: /s/ Drew D. Potera
------------------------------------
Drew D. Potera
Treasurer

ART HOLDINGS, INC.

By: /s/ Drew D. Potera
------------------------------------
Drew D. Potera
Treasurer