<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(AMENDMENT NO. 18)
INCOME OPPORTUNITY REALTY INVESTORS, INC.
(Name of Issuer)
COMMON STOCK, $0.01 PAR VALUE
(Title of Class of Securities)
452-926-108
(CUSIP Number)
ROBERT A. WALDMAN, 10670 N. CENTRAL EXPRESSWAY, SUITE 600, DALLAS, TEXAS 75231
(214) 692-4758
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
AUGUST 14, 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. 452-926-108 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 456,514
Number of
Shares --------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each --------------------------------------------------------------
Reporting 9) Sole Dispositive Power 456,514
Person
With --------------------------------------------------------------
10) Shared Dispositive Power -0-
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
456,514
- --------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
................................................................................
- --------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 30.0%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) CO
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CUSIP NO. 452-926-108 PAGE 2
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of
Above Persons
BASIC CAPITAL MANAGEMENT, INC. 75-2261065
- --------------------------------------------------------------------------------
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 115,994
Number of
Shares --------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each --------------------------------------------------------------
Reporting 9) Sole Dispositive Power 115,994
Person
With --------------------------------------------------------------
10) Shared Dispositive Power -0-
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
115,994
- --------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
................................................................................
- --------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 7.6%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) CO
<PAGE> 4
CUSIP NO. 452-926-108 PAGE 3
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of
Above Persons
TRANSCONTINENTAL REALTY INVESTORS, INC. 94-6565852
- --------------------------------------------------------------------------------
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 341,500
Number of
Shares --------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each --------------------------------------------------------------
Reporting 9) Sole Dispositive Power 341,500
Person
With --------------------------------------------------------------
10) Shared Dispositive Power -0-
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
341,500
- --------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
................................................................................
- --------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 22.4%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) CO
<PAGE> 5
INCOME OPPORTUNITY REALTY INVESTORS, INC.
CUSIP NO. 452-926-108
ITEM 1. SECURITY AND ISSUER
Item 1 is hereby amended to read as follows:
This amendment relates to the Shares of Common Stock, $.01 par value
(the "Shares"), of INCOME OPPORTUNITY REALTY INVESTORS, INC., (the "Company")
and amends the statement on Schedule 13D filed on August 1, 1997. The principal
executive offices of the Company 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") and
Transcontinental Realty Investors, Inc. ("TCI")(collectively, the
"Reporting Persons").
The Reporting Persons may be deemed to constitute a "person" within the
meaning of Section 13 (d) of the Securities Exchange Act of 1934, as amended.
This is because BCM owns approximately 52.1% of the outstanding securities of
ART and BCM serves as the advisor to ART and TCI.
(I) ART is a real estate investment company organized and existing as a
Georgia corporation engaged in the business of investing in and originating
mortgage loans and, investing in real estate. ART's principal business
activities include investments 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:
<TABLE>
<CAPTION>
Name Position(s) with ART
- ---- --------------------
<S> <C>
Oscar W. Cashwell Director
Al Gonzalez Director
Roy E. Bode Director
Cliff Harris Director
Karl L. Blaha Director\President
Thomas A. Holland Executive Vice President and
Chief Financial Officer
Bruce A. Endendyk Executive Vice President
</TABLE>
5
<PAGE> 6
<TABLE>
<CAPTION>
Name Position(s) with ART
- ---- --------------------
<S> <C>
Randall M. Paulson Executive Vice President
Steven K. Johnson Executive Vice President -
Residential Asset Management
Robert A. Waldman Senior Vice President, Secretary
and General Counsel
Drew D. Potera Vice President and Treasurer
</TABLE>
Mr. Cashwell's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Cashwell is a real estate consultant for
BCM. 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. 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
University of Texas Southwestern Medical Center at Dallas. Mr. Bode is a citizen
of the United States of America.
Mr. Harris' 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 President
of BCM. 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. 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.
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. Johnson's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Johnson's present principal occupation is
Executive Vice President-Residential Asset Management of BCM. Mr. Johnson is a
citizen of the United States of America.
6
<PAGE> 7
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, Secretary and General Counsel 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 and Treasurer of BCM. Mr. Potera is a citizen of the United States of
America.
(II) 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:
<TABLE>
<CAPTION>
Name Position(s) with BCM
- ---- --------------------
<S> <C>
Ryan T. Phillips Director
Mickey Ned Phillips Director
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
Steven K. Johnson Executive Vice President -
Residential 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
</TABLE>
7
<PAGE> 8
Information with respect to Messrs. Paulson, Holland, Blaha, Johnson,
Endendyk, Waldman and Potera is disclosed in (I) above.
Mr. R. Phillips' business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Phillips' present principal occupation is an
independent real estate investor. Mr. Phillips is a citizen of the United States
of America.
Mr. M. Phillips' business address is 264 Rolling Hills Circle, Gaffney,
South Carolina 29340. Mr. Phillips' present principal occupation is owner of
Phillips Remodeling Co. Mr. Phillips is a citizen of the United States of
America.
Mr. Towns' business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Towns' present principal occupation is Executive
Vice President 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 of BCM. Mr. Allred is a citizen of the United States of America.
(III) TCI is a real estate investment company organized and existing
under the law of the State of Nevada. TCI's principal business activity is
investment in real estate. The principal place of business and principal office
of TCI is located at 10670 North Central Expressway, Suite 600, Dallas, Texas
75231.
The following is a list of each executive officer and director of TCI:
<TABLE>
<CAPTION>
Name Position(s) with TCI
- ---- --------------------
<S> <C>
Richard W. Douglas Director
Larry E. Harley Director
R. Douglas Leonhard Director
Murray Shaw Director
Ted P. Stokely Director
Martin L. White Director
Edward G. Zampa Director
</TABLE>
8
<PAGE> 9
<TABLE>
<CAPTION>
Name Position(s) with TCI
- ---- --------------------
<S> <C>
Randall M. Paulson President
Thomas A. Holland Executive Vice President, Chief
Financial Officer and Secretary
Karl L. Blaha Executive Vice President -
Commercial Asset Management
Steven K. Johnson Executive Vice President -
Residential Asset Management
Bruce A. Endendyk Executive Vice President
Robert A. Waldman Senior Vice President and
General Counsel
Drew D. Potera Vice President and Treasurer
</TABLE>
Information with respect to Messrs. Paulson, Holland, Blaha, Johnson,
Endendyk, Waldman and Potera is disclosed in (I) and (II) above.
Mr. Douglas' business address is 3030 McKinney Avenue, #1201, Dallas,
Texas 75204. Mr. Douglas' present principal occupation is President of Dallas
Chamber of Commerce. Mr. Douglas is a citizen of the United States of America.
Mr. Harley's business address is 8520 Breakers Point, Dallas, Texas
75243. Mr. Harley is retired. Mr. Harley is a citizen of the United States of
America.
Mr. Leonhard's business address is 13230 Hunters Lark, San Antonio,
Texas 78230. Mr. Leonhard is retired. Mr. Leonhard is a citizen of the United
States of America.
Mr. Shaw's business address is 3713 Ebony, Hollow Pass, Austin, Texas
78745. Mr. Shaw's present principal occupation is Chairman of the Board of
Stephen F. Austin University. Mr. Shaw is a citizen of the United States of
America.
Mr. Stokely's business address is 10670 North Central Expressway, Suite
515, Dallas, Texas 75231. Mr. Stokely's present principal occupation is General
Manager of Minority and Elderly Housing Assistance Foundation, Inc. Mr. Stokely
is a citizen of the United States of America.
Mr. White's business address is 8051 Coach Drive, Oakland, California
94605. Mr. White's present principal occupation is Chairman and Chief Executive
Officer of Community Based Developers, Inc. Mr. White is a citizen of the United
States of America.
9
<PAGE> 10
Mr. Zampa's business address is Number Fifty Osgood Place, Suite
110, San Francisco, California 94133. Mr. Zampa is General Partner of
Edward G. Zampa and Company. Mr. Zampa is a citizen of the United
States of America.
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.
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 Shares owned directly and beneficially by
the Reporting Persons on the date of this statement:
<TABLE>
<CAPTION>
Shares owned Directly
---------------------
Number of Percent of
Name Shares Class (1)
- ---- --------- ----------
<S> <C> <C>
ART 456,514 30.0%
BCM 115,994 7.6%
TCI 341,500 22.4%
TOTAL 914,008 60.0%
</TABLE>
<TABLE>
<CAPTION>
Shares owned Beneficially
--------------------------
Number of Percent of
Name Shares Class (1)
- ---- --------- ----------
<S> <C> <C>
ART 456,514 30.0%
BCM 115,994 7.6%
TCI 341,500 22.4%
Al Gonzalez (2) 456,514 30.0%
Roy E. Bode (2) 456,514 30.0%
Oscar W. Cashwell (2) 456,514 30.0%
Cliff Harris (2) 456,514 30.0%
Karl L. Blaha (2) 456,514 30.0%
Richard W. Douglas (4) 341,500 22.4%
Larry E. Harley (4) 341,500 22.4%
R. Douglas Leonhard (4) 341,500 22.4%
Murray Shaw (4) 341,500 22.4%
Martin L. White (4) 341,500 22.4%
Ted P. Stokely (4) 341,500 22.4%
Edward G. Zampa (4) 341,500 22.4%
Total Shares beneficially
owned by Reporting Persons 914,008 60.0%
</TABLE>
10
<PAGE> 11
(1) Percentage calculations are based upon 1,522,531 Shares 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 Shares held directly by
ART by virtue of the relationship to ART described in Item 2.
(3) May be deemed to be a beneficial owner of the Shares held directly by
BCM by virtue of the relationship to BCM described in Item 2.
(4) May be deemed to be a beneficial owner of the Shares held directly by
TCI by virtue of the relationship to TCI described in Item 2.
(b) Voting and Dispositive Power
Each of the directors of ART share voting and dispositive power over
the 456,514 Shares held by ART. The directors of BCM have voting and dispositive
power over the 115,994 Shares held by BCM. Each of the directors of TCI share
voting and disposition power over the 341,500 Shares held by TCI.
(c) Transactions in Securities
The following table lists the purchase transactions in the Shares that
were effected by the Reporting Persons during the past 60 days.
<TABLE>
<CAPTION>
Reporting Number Price Type of
Person Date of Shares Per Share Transaction
- --------- ---- --------- --------- -----------
<S> <C> <C> <C> <C>
BCM 06/15/98 1,900 $11.50 Open Market
BCM 07/01/98 1,200 $11.50 Open Market
BCM 07/06/98 200 $11.50 Open Market
BCM 07/08/98 200 $11.50 Open Market
BCM 07/13/98 300 $11.50 Open Market
BCM 07/15/98 300 $11.50 Open Market
ART 07/20/98 500 $11.50 Open Market
ART 07/21/98 300 $11.50 Open Market
ART 07/23/98 1,200 $11.50 Open Market
BCM 07/24/98 400 $11.50 Open Market
BCM 07/28/98 500 $11.50 Open Market
BCM 07/29/98 200 $11.50 Open Market
BCM 08/04/98 800 $11.50 Open Market
BCM 08/14/98 125 $11.250 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 8,000 shares to Arnold Securities, pledged 11,951
shares to BA Investment Services, pledged 39,334 shares to Bear Stearns, pledged
2,000 shares to Chase Securities, pledged 10,000 shares to CJ Lawrence, Inc.,
pledged 47,383 shares to Dain Rauscher, pledged 98,721 shares to Dean Witter,
pledged 4,200 shares to First Southwest, pledged 3,400 shares to First Union
Bank, pledged 22,000 shares to Global Strategies, pledged 21,800 shares to
Hambrecht & Quist, pledged 10,900 shares to J.C. Bradford, pledged 6,080 shares
to Legg Mason (TX), pledged 10,000 shares to May Financial, pledged 32,200
shares to McDonald & Company, pledged 21,331 shares to Morgan Keegan, pledged
12,300 shares to Mutual Securities, pledged 10,000 shares to Nationwide
Securities,
11
<PAGE> 12
pledged 12,000 shares to Raymond James, pledged 2,000 shares to Regions
Investment, pledged 18,830 shares to Roney & Co., pledged 134 shares to
Southland Securities, pledge 400 shares to Southwest Securities, pledged 4,000
shares to Tucker Anthony, pledged 4,000 shares to Wachovia and pledged 15,200
shares to Wedbush Morgan in stock margin accounts maintained by it with such
brokers.
ART has also pledged 28,350 shares to United Pacific Bank pursuant to a
loan agreement with such lender.
BCM has pledged 3,800 shares to Advest, pledged 4,000 shares to
American Express, pledged 3,125 shares to Ameritrade, pledged 1,500 shares to BA
Investment Services, pledged 5,655 shares to Bear Stearns, pledged 2,000 shares
to Brown & Co., pledged 4,000 shares to CJ Lawrence, pledged 4,000 shares to
Cutter & Co., pledged 13,167 shares to Dain Rauscher, pledged 400 shares to Dean
Witter, pledged 2,200 shares to First Southwest, pledged 1,800 shares to First
Union Brokerage, pledged 6,400 shares to Global Strategies, pledged 6,000 shares
to Gruntal & Co., pledged 6,000 shares to Hambrecht & Quist, pledged 6,617
shares to J.C. Bradford, pledged 4,054 shares to Legg Mason (TX), pledged 5,800
shares to May Financial, pledged 9,800 shares to McDonald & Company, pledged
15,776 shares to Morgan Keegan, pledged 400 shares to Raymond James, pledged
4,000 shares to Regions Investment, pledged 1,500 shares to Robb Peck, pledged
2,000 shares to Robert Baird and pledged 2,000 shares to Wachovia in stock
margin accounts maintained by it with such brokers.
TCI has pledged 221,500 shares to Dean Witter and pledged 120,000
shares to Prudential (TX) in stock margin accounts maintained by it with such
brokers.
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 26, 1998.
AMERICAN REALTY TRUST, INC.
By: \s\Karl L. Blaha
----------------------------------------------
Karl L. Blaha
President
BASIC CAPITAL MANAGEMENT, INC.
By: \s\Drew D. Potera
----------------------------------------------
Drew D. Potera
Vice President and Treasurer
TRANSCONTINENTAL REALTY INVESTORS, INC.
By: \s\Drew D. Potera
----------------------------------------------
Drew D. Potera
Vice President and Treasurer
12
