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 14, 1996
ARVIDA/JMB PARTNERS, L.P. - II
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(Exact name of registrant as specified in its charter)
Illinois 0-19245 58-1809884
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(State or other) (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Organization
900 N. Michigan Avenue, Chicago, Illinois 60611-1575
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(Address of principal executive office)
Registrant's telephone number, including area code: (312) 915-1987
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS. Arvida/JMB Partners,
L.P.-II (the "Partnership") is the managing general partner of Heathrow
Development Associates, Ltd. (the "Venture"). On June 14, 1996, the
Venture received the proceeds from the sale of the remaining four housing
units, 131 developed homesites, approximately 940 undeveloped lots,
Heathrow Golf and Country Club and the cable television business within the
Venture's Heathrow community to 4/46A Corporation (the "Buyer"). The Buyer
is not affiliated with the Venture, the Partnership or its General Partner
and the sale price was determined by arm's length negotiations and approved
by the Partnership's lender. The gross sale price was $20,315,000. The
gross sale price was, in part, based upon the actual number of housing
units and undeveloped and developed lots available at December 31, 1995.
However, during the period from January 1, 1996 through June 14, 1996, the
Venture sold housing units and homesites through its ordinary course of
business. Therefore, the Buyer received a credit at closing of $1,009,181
for the homes and homesites sold by the Venture during such period. The
net proceeds from the sale, after prorations and closing costs, of
$18,413,510 have been applied against the outstanding principal balance on
one of the Partnership's term loans.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements of business acquired
Not applicable
(b) Pro Forma Financial Information
See Attached
(c) Exhibits
2.1 Agreement for Sale and Purchase of Real Property dated
March 22, 1996 among Heathrow Development Associates, Ltd., Heathrow Golf
and Country Club Limited Partnership, Heathrow Cable Limited Partnership
and 4/46A Corporation is incorporated herein by reference to Exhibit 10.15
to the Partnership's Form 10-Q (File No. 0-19245) which was filed with the
Securities and Exchange Commission on May 10, 1996.
SIGNATURES
Pursuant to the requirements 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.
ARVIDA/JMB PARTNERS, L.P. - II
BY: Arvida/JMB Managers, II, Inc.
(The General Partner)
By: GAILEN J. HULL
Gailen J. Hull
Vice President
Dated: July 1, 1996
<TABLE>
ATTACHMENT ITEM 7(B). PRO FORMA FINANCIAL INFORMATION
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
ARVIDA/JMB PARTNERS, L.P. - II
AS OF MARCH 31, 1996
<CAPTION>
Pro Forma
Historical Adjustments for Pro Forma
March 31, 1996 Disposition (1) March 31, 1996
-------------- --------------- --------------
<S> <C> <C> <C>
ASSETS:
Cash and cash equivalents . . . . . . . . . . . . . . $ 978,060 978,060
Restricted cash . . . . . . . . . . . . . . . . . . . 1,610,395 1,610,395
Trade and other accounts receivable . . . . . . . . . 1,194,377 (310,500) 883,877
Real estate inventories . . . . . . . . . . . . . . . 10,293,218 (10,148,289) 144,929
Property and equipment, net . . . . . . . . . . . . . 6,304,679 (3,530,627) 2,774,052
Prepaid expenses and other assets . . . . . . . . . . 1,833,053 (883,435) 949,618
------------ ----------- ------------
Total assets. . . . . . . . . . . . . . . . . . . . $ 22,213,782 (14,872,851) 7,340,931
============ =========== ============
LIABILITIES:
Bank overdrafts . . . . . . . . . . . . . . . . . . . $ 932,480 932,480
Accounts payable. . . . . . . . . . . . . . . . . . . 338,786 338,786
Deposits. . . . . . . . . . . . . . . . . . . . . . . 964,377 (869,878) 94,499
Accrued expenses and other liabilities. . . . . . . . 43,550,415 (182,175) 43,368,240
Amounts due to affiliates . . . . . . . . . . . . . . 7,619,020 7,619,020
Notes and mortgages payable . . . . . . . . . . . . . 98,710,703 (19,067,643) 79,643,060
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Commitments and contingencies
Total liabilities . . . . . . . . . . . . . . . . . 152,115,781 (20,119,696) 131,996,085
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET - CONTINUED
ARVIDA/JMB PARTNERS, L.P. - II
AS OF MARCH 31, 1996
Pro Forma
Historical Adjustments for Pro Forma
March 31, 1996 Disposition (1) March 31, 1996
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Partners capital accounts:
General Partner and Associate Limited Partner:
Capital contributions . . . . . . . . . . . . . . . 2,000 2,000
Cumulative net income (loss). . . . . . . . . . . . (7,268,005) (193,982) (7,461,987)
Cumulative cash distributions . . . . . . . . . . . (246,771) (246,771)
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(7,512,776) (193,982) (7,706,758)
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Limited partners:
Capital contributions, net of offering costs. . . . 209,753,671 209,753,671
Cumulative net income (loss). . . . . . . . . . . . (322,921,720) 5,440,827 (317,480,893)
Cumulative cash distributions . . . . . . . . . . . (9,221,174) (9,221,174)
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(122,389,223) 5,440,827 (116,948,396)
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Total partners deficits . . . . . . . . . . . . . . (129,901,999) 5,246,845 (124,655,154)
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Total liabilities and partners deficits . . . . . . $ 22,213,782 (14,872,851) 7,340,931
============ =========== ============
<FN>
(1) The 1996 unaudited pro forma consolidated financial statements give effect to the sale of the remaining
property within the Venture's Heathrow community (the "Heathrow disposition"), as if the Heathrow disposition had
occurred, for balance sheet purposes, on March 31, 1996 and, for statement of operations purposes, on January 1,
1996. The unaudited pro forma consolidated statement of operations for the year ended December 31, 1995 gives
effect to the Heathrow disposition as if it had occurred on January 1, 1995.
</TABLE>
<TABLE>
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
ARVIDA/JMB PARTNERS, L.P. - II
FOR THE THREE MONTHS ENDED MARCH 31, 1996
<CAPTION>
Pro Forma
Historical Adjustments for Pro Forma
March 31, 1996 Disposition (1) March 31, 1996
-------------- --------------- --------------
<S> <C> <C> <C>
Revenues:
Housing . . . . . . . . . . . . . . . . . . . . . . . $ 140,810 (140,810)
Homesites . . . . . . . . . . . . . . . . . . . . . . 646,050 (409,000) 237,050
Operating properties. . . . . . . . . . . . . . . . . 1,686,344 (1,483,625) 202,719
Brokerage and other operations. . . . . . . . . . . . 336,171 (218,331) 117,840
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Total revenues. . . . . . . . . . . . . . . . . . . 2,809,375 (2,251,766) 557,609
Cost of revenues:
Housing . . . . . . . . . . . . . . . . . . . . . . . 147,279 (139,901) 7,378
Homesites . . . . . . . . . . . . . . . . . . . . . . 558,537 (393,000) 165,537
Operating properties. . . . . . . . . . . . . . . . . 1,378,222 (1,220,085) 158,137
Brokerage and other operations. . . . . . . . . . . . 293,264 (185,807) 107,457
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Total cost of revenues. . . . . . . . . . . . . . . 2,377,302 (1,938,793) 438,509
Gross operating profit. . . . . . . . . . . . . . . . . 432,073 (312,973) 119,100
Selling, general and administrative expenses. . . . . . (482,775) 108,483 (374,292)
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Net operating income (loss) . . . . . . . . . . . . (50,702) (204,490) (255,192)
Interest income . . . . . . . . . . . . . . . . . . . . 9,124 9,124
Interest and real estate taxes, net . . . . . . . . . . (5,072,760) 815,060 (4,257,700)
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Net income (loss) . . . . . . . . . . . . . . . . . $(5,114,338) 610,570 (4,503,768)
=========== =========== ===========
Net income (loss) per
Limited Partnership Interest. . . . . . . . . . . $ (15.61) 7.62
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<FN>
(1) The 1996 unaudited pro forma consolidated financial statements give effect to the sale of the remaining
property within the Venture's Heathrow community (the "Heathrow disposition"), as if the Heathrow disposition had
occurred, for balance sheet purposes, on March 31, 1996 and, for statement of operations purposes, on January 1,
1996. The unaudited pro forma consolidated statement of operations for the year ended December 31, 1995 gives
effect to the Heathrow disposition as if it had occurred on January 1, 1995.
</TABLE>
<TABLE>
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
ARVIDA/JMB PARTNERS, L.P. - II
FOR THE YEAR ENDED DECEMBER 31, 1995
<CAPTION>
Historical Pro Forma Pro Forma
December 31, Adjustments for December 31,
1995 Disposition (1) 1995
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<S> <C> <C> <C>
Revenues:
Housing . . . . . . . . . . . . . . . . . . . . . . . $ 6,203,400 (4,044,359) 2,159,041
Homesites . . . . . . . . . . . . . . . . . . . . . . 7,436,745 (4,827,300) 2,609,445
Land and property . . . . . . . . . . . . . . . . . . 4,250,000 4,250,000
Operating properties. . . . . . . . . . . . . . . . . 5,289,574 (4,692,157) 597,417
Brokerage and other operations. . . . . . . . . . . . 2,595,879 (988,357) 1,607,522
------------ ----------- -----------
Total revenues. . . . . . . . . . . . . . . . . . . 25,775,598 (14,552,173) 11,223,425
Cost of revenues:
Housing . . . . . . . . . . . . . . . . . . . . . . . 5,440,703 (3,452,292) 1,988,411
Homesites . . . . . . . . . . . . . . . . . . . . . . 5,785,737 (3,704,078) 2,081,659
Land and property . . . . . . . . . . . . . . . . . . 442,363 442,363
Operating properties. . . . . . . . . . . . . . . . . 5,399,440 (4,877,346) 522,094
Brokerage and other operations. . . . . . . . . . . . 2,393,648 (1,149,160) 1,244,488
------------ ----------- -----------
Total cost of revenues. . . . . . . . . . . . . . . 19,461,891 (13,182,876) 6,279,015
Gross operating profit. . . . . . . . . . . . . . . . . 6,313,707 (1,369,297) 4,944,410
Selling, general and administrative expenses. . . . . . (4,409,012) 742,550 (3,666,462)
------------ ----------- -----------
Net operating income (loss) . . . . . . . . . . . . 1,904,695 (626,747) 1,277,948
Interest income . . . . . . . . . . . . . . . . . . . . 200,267 (22,405) 177,862
Interest and real estate taxes, net . . . . . . . . . . (20,347,310) 2,469,747 (17,877,563)
------------ ----------- -----------
Net income (loss) . . . . . . . . . . . . . . . . . $(18,242,348) 1,820,595 (16,421,753)
============ =========== ===========
Net income (loss) per
Limited Partnership Interest. . . . . . . . . . . $ (52.00) 29.72
============ ===========
<FN>
(1) The 1996 unaudited pro forma consolidated financial statements give effect to the sale of the remaining
property within the Venture's Heathrow community (the "Heathrow disposition"), as if the Heathrow disposition had
occurred, for balance sheet purposes, on March 31, 1996 and, for statement of operations purposes, on January 1,
1996. The unaudited pro forma consolidated statement of operations for the year ended December 31, 1995 gives
effect to the Heathrow disposition as if it had occurred on January 1, 1995.
</TABLE>
