SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(D) of the Securities Exchange
Act of 1934
Date of Report (Date of Earliest Event Reported) May 13, 1998
FLORIDA INCOME FUND III, Limited Partnership
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(Exact Name of Registrant as Specified in its Charter)
DELAWARE 33-19152 65-0016187
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(State or Other (Commission file number) (IRS Employer
Jurisdiction of ID Number)
Incorporation)
12800 University Drive, Ste 260, Ft. Myers, FL 33907
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(Address of Principal Executive Offices (Zip Code)
Registrant's telephone number, including area code (941) 481-2011
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N/A
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Former Name or Former Address, if Changes Since Last Report
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TABLE OF CONTENTS
ITEM 2
ACQUISITION OR DISPOSITION OF ASSETS
ITEM 5
HISTORICAL SUMMARY OF GROSS REVENUES AND
CERTAIN DIRECT OPERATING EXPENSES
EXHIBIT 99.1
SELLERS CLOSING STATEMENT
SIGNATURES
Page 2<PAGE>
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ITEM 2 - FORM 8-K
ACQUISITION OR DISPOSITION OF ASSETS
SALE OF PINK SHELL RESORT
The partnership sold its final asset, Pink Shell Resort, located on
Fort Myers Beach, Florida, to Boykin Hotel Properties, L.P. at a
net selling price of $19,969,322. Costs of sale totaled $446,727.
The net proceeds from sale were further reduced by credits to the
Buyer for advance deposits and pro-rata share of 1998 real estate
taxes of $332,994 and $66,679, respectively. In addition, a first
mortgage loan due Barnett Bank of Lee County, with an outstanding
balance of $5,057,472, was paid in full.
The amount of net closing proceeds due the Seller was reduced by
the payment in full of a mortgage loan with a balance of
$5,057,472.
The net proceeds from sale plus other cash on hand, after deducting
certain reserves, are being distributed to the limited partners
during the week of May 11, 1998. The amount of the distribution
totals $14,471,433 or an average of $983 per $1000 investment unit.
This amount varies slightly by limited partner based on the date
that each partner was admitted to the partnership. Following this
distribution, the Partnership's net worth is estimated at $408,000
or $27.72 per investment unit. This net worth is being retained to
cover any future potential Partnership costs for a period of
approximately six months at which time the Partnership will be
liquidated and a final distribution will be made.
Pursuant to the information required by Article II of regulation S-
X, if the sale had occurred on March 31, 1998, the effect on the
partnership's unaudited balance sheet of the same date would have
been a decrease in net asset value of $18,594,375, a decrease in
debt of $9,517,818, and a higher net worth of approximately
$9,076,557. However this net worth would then be reduced at the
time of the above mentioned distribution to limited partners in the
amount of $14,471,433.
If this sale had occurred on January 1, 1998, the effect on the
unaudited income statement for the three months ended March 31,
1998 would have been to decrease revenue by $3,629,292, decrease
operating expenses by $2,089,321, decrease other non-operating
expenses by $224,130, decrease depreciation and amortization
expenses by $210,616. All of the foregoing adjustment would have
resulted in a decrease in net income of $1,105,225.
Included in this report is the historical summary of gross revenues
and certain direct operating expenses for the twelve months ending
12/31/97, 12/31/96 and 12/31/95.
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<CAPTION>
PINK SHELL RESORT
HISTORICAL SUMMARY OF GROSS REVENUES AND
CERTAIN DIRECT OPERATING EXPENSES
12/31/97 12/31/96 12/31/95
<S> <C> <C> <C>
GROSS REVENUES
Total Revenue 10,050,283 9,369,488 8,760,209
CERTAIN DIRECT
OPERATING EXPENSES
Rooms 2,140,108 2,061,137 1,853,042
Other Operating 2,497,859 2,248,358 2,082,519
Admin & General 678,576 813,310 933,291
Sales & Marketing 516,542 561,800 574,807
Maintenance 591,379 578,818 452,243
Real Estate Taxes 216,070 184,976 196,291
Corporate Expenses 795,577 646,719 472,074
Management Fees 602,806 562,098 525,607
_________ _________ _________
TOTAL CERTAIN DIRECT
OPERATING EXPENSES 8,038,917 7,657,216 7,089,874
EXCESS OF GROSS
REVENUES OVER CERTAIN
DIRECT OPERATING
EXPENSES 2,011,366 1,712,272 1,670,335
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Page 4<PAGE>
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SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) 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.
FLORIDA INCOME FUND III, Limited Partnership
(REGISTRANT)
May 13, 1998
/S/ ALLEN G. TEN BROEK
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ALLEN G. TEN BROEK
PRESIDENT AND DIRECTOR, AND CEO
MARINER CAPITAL MANAGEMENT, INC.
(PRINCIPAL EXECUTIVE OFFICER)
/S/ ELAINE HAWKINS
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ELAINE HAWKINS
SECRETARY/TREASURER
MARINER CAPITAL MANAGEMENT, INC.
(PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER)
Page 5
EXHIBIT 99.1
SELLER'S CLOSING STATEMENT
Seller: Florida Income Fund III, Limited Partnership
Buyer: Boykin Hotel Properties, L.P.
Property: Pink Shell Resort, Ft. Myers Beach, FL
Date of Closing: May 1, 1998
Net Selling Price: $19,969,322
Buyer Credits: $ 125,982
Gross Amount Due Seller: $20,015,304
CLOSING COSTS AND PAYMENTS:
1. Broker Commission $ 299,540
2. Title Insurance Policy $ 55,308
3. Attorney's Fees $ 14,475
4. Documentary Tax $ 75,786
5. Pay First Mortgage $ 5,057,472
6. Guest Advance Deposits $ 332,994
7. Real Estate Tax Pro-Ration $ 66,679
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TOTAL DEDUCTIONS $ 5,903,872
CASH TO SELLER: $ 14,191,432
I HEREBY CERTIFY THE ABOVE TO BE TRUE AND CORRECT:
FLORIDA INCOME FUND III, LIMITED PARTNERSHIP
BY: MARINER CAPITAL MANAGEMENT, INC. a Florida Corporation, its
Managing General Partner
/S/ ALLEN G. TEN BROEK
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BY: ALLEN G. TEN BROEK FEDERAL TAX ID NO. 59-2337910
PRESIDENT
CORPORATE SEAL
(SEAL)
