<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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): June 25, 1999
COPLEY REALTY INCOME PARTNERS 3; A LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in its Charter)
Massachusetts
(State or Other Jurisdiction of Incorporation)
0-17809 04-3005973
(Commission File Number) (IRS Employer Identification No.)
225 Franklin Street, 25th Floor
Boston, MA 02110
(Address of principal executive offices) (Zip Code)
(617) 261-9000
Registrant's Telephone Number, Including Area Code
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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Item 2. Acquisition or Disposition of Assets.
- ----------------------------------------------
On June 25, 1999, Copley Realty Income Partners 3; A Limited Partnership
(the "Partnership") sold its property located at 105 South Puente Street, Brea,
California. The property was sold to The Brookhollow Group, which had been
employed by the Partnership as the property manager for the property, (the
"Buyer") for gross proceeds of $8,530,000. The selling price was determined by
arm's length negotiations between the Partnership and the Buyer. The
Partnership received net proceeds of approximately $8,380,000 and recognized a
gain of approximately $1,360,000 on the sale.
Item 7. Financial Statements and Exhibits.
- -------------------------------------------
In connection with the disposition of the asset discussed in Item 2 above,
pro forma financial statements are presented below. The pro forma balance sheet
is presented for the period ended March 31, 1999 (Exhibit A). The pro forma
income statements are presented for the fiscal year ended December 31, 1998
(Exhibit B) and the period ended March 31, 1999 (Exhibit C).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: July 9, 1999 COPLEY REALTY INCOME PARTNERS 3;
A LIMITED PARTNERSHIP
(Registrant)
By: Third Income Corp.,
Managing General Partner
Alison Husid Cutler
-----------------------------------------
Name: Alison Husid Cutler
Title: President, Chief Executive Officer
and Director
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EXHIBIT A
Copley Realty Income Partners 3;
A Limited Partnership
Pro Forma Balance Sheet
March 31, 1999
Unaudited
<TABLE>
<CAPTION>
Pro Forma March 31, 1999
March 31, 1999 Adjustment Pro Forma
-------------- ---------- ---------
<S> <C> <C> <C>
ASSETS
Property, Net $ 7,020,623 $(7,020,623)(a) $ 0
Joint Venture 4,887,063 0 4,887,063
Cash and cash equivalents 1,963,599 8,381,091 (a) 10,344,690
----------- ----------- -----------
$13,871,285 $ 1,360,468 $15,231,753
=========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 36,015 0 $ 36,015
Accrued management fee 27,613 0 27,613
Deferred disposition fee 29,250 0 29,250
----------- ----------- -----------
Total liabilities 92,878 0 92,878
----------- ----------- -----------
Partners' capital (deficit):
Limited partners ($800 per unit;
100,000 units authorized, 27,641
units issued and outstanding) 13,827,675 1,346,863 (a) 15,174,538
General partners (49,268) 13,605 (a) (35,663)
----------- ----------- -----------
Total partners' capital 13,778,407 1,360,468 15,138,875
----------- ----------- -----------
$13,871,285 $ 1,360,468 $15,231,753
=========== =========== ===========
</TABLE>
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EXHIBIT B
Copley Realty Income Partners 3;
A Limited Partnership
Pro Forma Income Statement
December 31, 1998
Unaudited
<TABLE>
<CAPTION>
Pro Forma December 31, 1998
December 31, 1998 Adjustment Pro Forma
----------------- ---------- ---------
<S> <C> <C> <C>
Investment Activity
Property rentals $ 988,047 $ (988,047)(b) $ 0
Property operating expenses (105,723) 105,723 (b) 0
Depreciation and amortization (315,530) 315,530 (b) 0
----------- ---------- -----------
566,794 (566,794) 0
Joint venture earnings 356,404 0 356,404
----------- ---------- -----------
Total real estate operations 923,198 (566,794) 356,404
Gain on sale of property 0 1,360,468 (a) 1,360,468
----------- ---------- -----------
Total real estate activity 923,198 793,674 1,716,872
Interest on cash equivalents and short
term investments 109,707 0 109,707
----------- ---------- -----------
Total investment activity 1,032,905 793,674 1,826,579
Portfolio Expenses
Management fee 143,590 (78,893)(e) 64,697
General and administrative 89,903 (4,000)(f) 85,903
----------- ---------- -----------
233,493 (82,893) 150,600
----------- ---------- -----------
Net income $ 799,412 $ 876,567 $ 1,675,979
=========== ========== ===========
Net income per limited partnership unit $ 28.63 $ 31.40 (c) $ 60.03
=========== ========== ===========
Number of limited partnership units
outstanding during the year 27,641 27,641 27,641
=========== ========== ===========
</TABLE>
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<PAGE>
EXHIBIT C
Copley Realty Income Partners 3;
A Limited Partnership
Pro Forma Income Statement
March 31, 1999
Unaudited
<TABLE>
<CAPTION>
Pro Forma March 31, 1999
March 31, 1999 Adjustment Pro Forma
-------------- ---------- ---------
<S> <C> <C> <C>
Investment Activity
Property rentals $265,674 $ (265,674)(d) $ 0
Property operating expenses (7,035) 7,035 (d) 0
Depreciation and amortization (78,492) 78,492 (d) 0
----------- ---------- -----------
180,147 (180,147) 0
Joint venture earnings 96,921 0 96,921
Gain on sale of property 0 1,360,468 (a) 1,360,468
----------- ---------- -----------
Total real estate operations 277,068 1,180,321 1,457,389
Interest on cash equivalents and short
term investments 22,154 0 22,154
----------- ---------- -----------
Total investment activity 299,222 1,180,321 1,479,543
Portfolio Expenses
Management fee 27,614 (16,650)(e) 10,964
General and administrative 18,894 0 18,894
----------- ---------- -----------
46,508 (16,650) 29,858
----------- ---------- -----------
Net income $252,714 $1,196,971 $ 1,449,685
=========== ========== ===========
Net income per limited partnership unit $ 9.05 $ 42.87 (c) $ 51.92
=========== ========== ===========
Number of limited partnership units
outstanding during the period 27,641 27,641 27,641
=========== ========== ===========
</TABLE>
Pro Forma Financial Statement Footnotes:
(a) Disposition of asset as discussed in Item 2 herein and allocation of the
gain to the Partners on such disposition.
(b) Removal of 1998 operating activity related to the disposed asset discussed
in Item 2 herein.
(c) Calculation of net income per limited partnership unit after the removal of
operating activity and addition of the gain related to the disposed asset
discussed in Item 2 herein.
(d) Removal of 1999 year-to-date operating activity related to the disposed
asset discussed in Item 2 herein.
(e) Removal of management fees based on distributions received during the pro
forma period from the disposed asset discussed in Item 2 herein.
(f) Removal of appraisal fees incurred during the pro forma period for the
disposed asset discussed in Item 2 herein.
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