SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter ended June 30, 1997 Commission File Number 0-8952
------------------ ------
SB PARTNERS
----------------------------------------------------------------------------
New York 13-6294787
-------------------------------- ----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
666 Fifth Avenue N.Y., N.Y. 10103
--------------------------------------- ----------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 408-2900
----------------------
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Former name, former address and former fiscal year, if changed since last
report
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the Registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
YES X NO
--- ---
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date (applicable only to
corporate issuers).
Not Applicable<PAGE>
SB PARTNERS
INDEX
Part I Financial Information
Balance Sheets
June 30, 1997 and December 31, 1996 . . . . . . . . . . . 1
Statements of Operations
For the three and six months ended June 30, 1997
and 1996 . . . . . . . . . . . . . . . . . . . . . . . . 2
Statements of Changes in Partners' Capital
For the years ended December 31, 1996 and 1995
and the six months ended June 30, 1997 . . . . . . . . . 3
Statements of Cash Flows
For the six months ended June 30, 1997
and 1996 . . . . . . . . . . . . . . . . . . . . . . . . 4
Notes to Financial Statements . . . . . . . . . . . . . 5 - 6
Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . 7 - 12
Part II Other Information . . . . . . . . . . . . . . . . . . . . 13
<PAGE>1
<TABLE>
SB PARTNERS
(a New York limited partnership)
------------------------------
BALANCE SHEETS
June 30, 1997 (Not Audited) and
December 31, 1996 (Audited, but not covered by the report of independent accountants)
------------------------------------------------------------------------------------
<CAPTION>
June 30, December 31,
1997 1996
------------- ------------
<S> <C> <C>
Assets:
Investments -
Real Estate, at cost
Land $ 5,083,234 $ 5,113,690
Buildings, furnishings and improvements 45,470,314 45,521,700
Less - accumulated depreciation and valuation allowance (18,823,661) (18,278,229)
------------ ------------
31,729,887 32,357,161
Investment in joint venture 10,789,005 10,742,193
------------ ------------
42,518,892 43,099,354
Other assets -
Cash and cash equivalents 2,122,071 2,019,321
Accounts receivable and other assets 2,111,558 2,656,255
------------ ------------
Total assets $ 46,752,521 $ 47,774,930
============ ============
Liabilities:
Mortgage notes payable $ 30,264,667 $ 30,752,378
Accounts payable and accrued expenses 1,027,343 1,113,122
Tenants security deposits 313,436 322,821
------------ ------------
Total liabilities 31,605,446 32,188,321
------------ ------------
Partners' Capital:
Units of partnership interest without par value;
Limited partners - 7,753 units 15,163,557 15,603,034
General partner - 1 unit (16,482) (16,425)
------------ ------------
15,147,075 15,586,609
------------ ------------
Total liabilities & partners' capital $ 46,752,521 $ 47,774,930
============ ============
The accompanying notes are an integral part of these balance sheets.
</TABLE>
<PAGE>2
<TABLE>
SB PARTNERS
(a New York limited partnership)
------------------------------
STATEMENTS OF OPERATIONS (Not Audited)
-------------------------------------
<CAPTION>
For The Three Months For The Six Months
---------------------- -----------------------
1997 1996 1997 1996
----------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Revenues:
Rental income $2,339,221 $ 4,587,757 $4,356,390 $ 9,876,346
Interest on short-term investments 30,037 13,339 59,743 34,197
Other 126,777 132,593 232,966 264,066
---------- ----------- ---------- -----------
Total revenues 2,496,035 4,733,689 4,649,099 10,174,609
---------- ----------- ---------- -----------
Expenses:
Interest on mortgage notes payable 596,564 2,598,596 1,197,844 4,978,139
Real estate operating expenses 858,210 3,997,861 1,815,852 6,581,538
Depreciation and amortization 479,080 997,157 948,718 2,215,126
Real estate taxes 233,514 225,553 444,602 670,883
Management fees 300,013 361,986 597,557 846,736
Other 28,416 151,198 65,709 371,310
---------- ----------- ---------- -----------
Total expenses 2,495,797 8,332,351 5,070,282 15,663,732
---------- ----------- ---------- -----------
Income (loss) from operations 238 (3,598,662) (421,183) (5,489,123)
Equity in net income of joint venture 55,339 205,824 46,812 391,281
Loss on sale of investment in real estate 0 0 (65,163) 0
---------- ----------- ---------- -----------
Net income (loss) before extraordinary items 55,577 (3,392,838) (439,534) (5,097,842)
Gain on disposition of investment in real estate
Through discharge of indebtedness 0 7,535,652 0 7,535,652
---------- ----------- ---------- -----------
Net income (loss) 55,577 4,142,814 (439,534) 2,437,810
Income (loss) allocated to general partner 7 534 (57) 314
---------- ----------- ---------- -----------
Income (loss) allocated to limited partners $ 55,570 $ 4,142,280 $ (439,477) $ 2,437,496
========== =========== ========== ===========
Net Income (Loss) Per Unit of Limited Partnership Interest:
Income (loss) before extraordinary items $ 7.17 $ (437.56) $ (56.69) $ (657.45)
Extraordinary income $ 0.00 $ 971.84 $ 0.00 $ 971.84
Net income (Loss) $ 7.17 $ 534.28 $ (56.69) $ 314.39
========== =========== ========== ===========
Weighted Average Number of Units of Limited
Partnership Interest Outstanding 7,753 7,753 7,753 7,753
========== =========== =========== ===========
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE>3
<TABLE>
SB PARTNERS
(a New York limited partnership)
------------------------------
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the six months ended June 30, 1997 (Not Audited) and
for the years ended December 31, 1996 and 1995 (Audited, but not covered by the report of independent public accountants)
------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Limited Partners:
Units of
Partnership Cumulative
Interest Cash Accumulated
Number Amount Distributions Earnings Total
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1994 7,753 $119,968,973 $(97,728,323) $ (7,606,190) $14,634,460
Net loss for the period - - - (3,342,849) (3,342,849)
----- ------------ ------------ ------------ -----------
Balance, December 31, 1995 7,753 119,968,973 (97,728,323) (10,949,039) 11,291,611
Net income for the period - - - 4,311,423 4,311,423
----- ------------ ------------ ------------ -----------
Balance, December 31, 1996 7,753 119,968,973 (97,728,323) (6,637,616) 15,603,034
Net loss for the period - - - (439,477) (439,477)
----- ------------ ------------ ------------ -----------
Balance, June 30, 1997 7,753 $119,968,973 $(97,728,323) $ (7,077,093) $15,163,557
===== ============ ============ ============ ===========
General Partner:
Units of
Partnership Cumulative
Interest Cash Accumulated
Number Amount Distributions Earnings Total
Balance, December 31, 1994 1 $10,000 $(24,559) $(1,991) $(16,550)
Net loss for the period - - - (431) (431)
----- ------- -------- ------- --------
Balance, December 31, 1995 1 10,000 (24,559) (2,422) (16,981)
Net income for the period - - - 556 556
----- ------- -------- ------- --------
Balance, December 31, 1996 1 10,000 (24,559) (1,866) (16,425)
Net loss for the period - - - (57) (57)
----- ------- -------- ------- --------
Balance, June 30, 1997 1 $10,000 $(24,559) $(1,923) $(16,482)
===== ======= ======== ======= ========
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE>4
<TABLE>
SB PARTNERS
(a New York limited partnership)
------------------------------
STATEMENTS OF CASH FLOWS (Not Audited)
-------------------------------------
<CAPTION>
For the Six Months Ended
June 30,
---------------------------
1997 1996
----------- -----------
<S> <C> <C>
Cash Flows From Operating Activities:
Net Income (Loss) $ (439,534) $ 2,437,810
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating activities:
Loss on sale of investment in real estate 65,163 0
Extraordinary gain on disposition of investment in real estate 0 (7,535,652)
Equity in net income of joint venture (46,812) (391,281)
Depreciation and amortization 500,019 2,215,126
Decrease in other assets 948,718 2,254,633
Increase (decrease) in other liabilities (95,164) 851,242
----------- -----------
Net cash provided by (used in) operating activities 932,390 (168,122)
----------- -----------
Cash Flows From Investing Activities:
Proceeds from sale of investment in real estate 45,000 125,622
Capital additions to real estate (386,929) (946,282)
Distributions received from joint venture 0 602,994
----------- -----------
Net cash used in investing activities (341,929) (217,666)
----------- -----------
Cash Flows From Financing Activities:
Proceeds from mortgage notes payable 0 5,350,000
Proceeds from short-term loan 0 1,038,370
Retirement of mortgage note payable (326,267) (5,173,235)
Principal payments on mortgage notes payable (161,444) (2,893,267)
Repayment of short-term loan 0 (1,038,370)
----------- -----------
Net cash used in financing activities (487,711) (2,716,502)
----------- -----------
Net increase (decrease) in cash and cash equivalents 102,750 (3,102,290)
Cash and cash equivalents at beginning of period 2,019,321 3,304,968
----------- -----------
Cash and cash equivalents at end of period $ 2,122,071 $ 202,678
=========== ===========
Supplemental disclosures of cash flow information:
Cash paid during the period for interest $ 1,059,228 $ 3,629,961
=========== ===========
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE>5
SB PARTNERS
(a New York limited partnership)
------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
-----------------------------------------
(1) Accounting and Financial Reporting
----------------------------------
The financial statements included herein are unaudited; however,
the information reflects all adjustments (consisting solely of normal
recurring adjustments) that are, in the opinion of management,
necessary to a fair presentation of the financial position, results of
operations and cash flows for the interim periods. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations, although the Registrant believes that the disclosures are
adequate to make the information presented not misleading. It is
suggested that these financial statements be read in conjunction with
the financial statements and the notes thereto included in the
Registrant's latest annual report on Form 10-K.
The results of operations for the three and six month periods
ended June 30, 1997 and 1996 are not necessarily indicative of the
results to be expected for the full year.
(2) Mortgage Notes Payable
----------------------
During the quarter ended June 30, 1997, the Partnership retired
the mortgage note of $326,000 secured by Cherry Hill Office Center.
The note had a 9.50% interest rate and was scheduled to mature in
September 1, 2000.
(3) Gain/Loss on Sale of Investment in Real Estate
----------------------------------------------
The Partnership sold its ten percent interest in an apartment
project in Orlando, Florida. The Partnership had been using the cost
method to account for this investment. The net loss of $65,000
realized in this transaction is reflected on the statement of
operations as a loss on sale of investment in real estate.
<PAGE>6
(4) Long-Lived Asset Held for Sale
------------------------------
The Partnership is in negotiations to sell Plantation Shopping
Center, and expects to complete the sale before the end of the year.
The historical cost of $14,543,000 less accumulated depreciation of
$5,551,000 is less than the estimated fair value less anticipated
costs of the sale.
(5) Other Matters
-------------
The Partnership is a party to certain actions directly related to
its normal business operations. While the ultimate outcome is not
presently determinable with certainty, the Partnership believes that
the resolution of these matters will not have a material effect on its
financial position and results of operations.
<PAGE>7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 1997
----------------------------------------
General
-------
The financial statements as of and for the three and six months
ended June 30, 1997 reflect the operations of one office property, one
shopping center, two residential garden apartment properties and one
joint venture. The financial statements as of and for the three and
six months ended June 30, 1996 reflect the operations of three office
properties, one shopping center, two residential garden apartment
properties and two joint ventures.
Total revenues for the three months ended June 30, 1997 decreased
$2,238,000 to approximately $2,496,000 from approximately $4,734,000
for the three months ended June 30, 1996. Net income decreased
$4,087,000 to approximately $56,000 from net income after gain on
disposition of $4,143,000 for the three months ended June 30, 1996.
Total revenues for the six months ended June 30, 1997 decreased
$5,526,000 to approximately $4,649,000 from approximately $10,175,000
for the six months ended June 30, 1996. Net income decreased
$2,877,000 to a net loss of approximately $439,000 from net income
after gain on disposition of approximately $2,438,000 for the six
months ended June 30, 1996.
Changes in total revenues and net income/loss are substantially
attributable to the dispositions of International Jewelry Center and
1010 Market Street office buildings during 1996. Together, these two
office buildings accounted for 53.13% of total revenues and 97.62% of
the net loss before the gain on disposition for the three months ended
June 30, 1996, and 56.29% of total revenues and 59.52% of the net loss
before the gain on disposition for the six months ended June 30, 1996.
Net income for both the three and six month periods ended June 30,
1996 include an extraordinary gain on disposition of real estate
through discharge of indebtedness of approximately $7,536,000.
<PAGE>8
Liquidity and Capital Resources
-------------------------------
As of June 30, 1996, the Registrant had cash and cash equivalents
of $2,122,000 in addition to $809,000 of deposits held in escrow by
certain lenders for the payment of insurance, real estate taxes, and
certain capital and maintenance costs. These balances are
approximately $320,000 more than cash, cash equivalents, and deposits
held in escrow on December 31, 1996. The increase is primarily due to
the accumulation of funds held by lenders in escrow for the payment of
expenses to be realized later in the year.
Debt at June 30, 1997 consisted of approximately $24,915,000 of
non-recourse first mortgage notes payable secured by apartments owned
by the Registrant, and a note of $5,350,000 secured by Plantation
Shopping Center. Payment terms of the Plantation note are interest
only, based upon a fixed spread over a LIBOR index, until the maturity
of the note at the end of 1997. The Registrant is currently in
negotiations to sell and expects to either complete the sale of the
property or to refinance this short-term loan with more conventional
long-term financing before the term of the note expires. During the
quarter ended June 30, 1997, the Registrant retired the mortgage note
secured by Cherry Hill Office Center. The balance of the note,
$326,000, had a 9.50% interest rate and was to mature on
September 1, 2000. Other scheduled maturities through regularly
scheduled monthly payments of principal and interest will be
approximately $173,000 for the last two fiscal quarters of 1997. The
terms of certain mortgage notes require monthly escrow of estimated
annual real estate tax, insurance and reserves for repairs,
maintenance and improvements to the secured property, in addition to
the payments of principal and interest. The Registrant has no other
debt except normal trade accounts payable and expenses, and accrued
interest on previously discussed mortgage notes payable.
Cash flow from the Registrant's remaining apartment properties
has been increasing moderately, reflecting improving markets. With
its present debt structure, Plantation Center is expected to
generate positive cash flow for the remainder of 1997. The balance
of the Registrant's portfolio of properties are expected to generate
sufficient cash flow to cover operating, financing, and capital
investment costs of the Registrant for the foreseeable future.
<PAGE>9
Holiday Park Apartments
-----------------------
Total revenues for the three months ended June 30, 1997 increased
$9,000 to $285,000 from $276,000 for the three months ended June 30,
1996. Net loss after depreciation and mortgage interest expense for
the three months ended June 30, 1997 increased $14,000 to $30,000 from
$16,000 for the three months ended June 30, 1996. The increase in
revenues was primarily due to rental rate increases implemented at the
property which increased revenues $7,000, while average occupancy at
the property increased from 90.97% to 92.29%, which increased income
$4,000, which was partially offset by decreases in other income of
$2,000. The increase in net loss was primarily due to increases in
repairs and maintenance of $9,000, depreciation expense of $5,000,
payroll and related costs of $5,000, and utilities expense of $3,000,
which were partially offset by revenues.
Total revenues for the six months ended June 30, 1997 increased
$16,000 to $565,000 from $549,000 for the six months ended June 30,
1996. Net loss after depreciation and mortgage interest expense
increased $12,000 to $54,000 from $42,000 for the six months ended
June 30, 1996. The increase in revenues was primarily the result of
increased rental rates implemented at the property which increased
income $11,000, supplemented by a marginal increase in occupancy which
increased revenues $7,000. The increase in net loss was primarily due
to increases in repairs and maintenance of $13,000, payroll and
related costs of $9,000, utilities of $5,000, and advertising and
promotion of $2,000, which were partially offset by the increases in
revenue.
Meadow Wood Apartments
----------------------
Total revenues for the three months ended June 30, 1997 increased
$10,000 to $1,132,000 from $1,122,000 for the three months ended June
30, 1996. Net income after depreciation and mortgage interest expense
for the three months ended June 30, 1997 increased $79,000 to $32,000
from a net loss of $47,000 for the three months ended June 30, 1996.
The increase in revenues was primarily a result of increases in rental
rates implemented at the property, which increased revenues by
$20,000, while miscellaneous revenues increased $5,000. These
increases were partially offset by a decrease in average occupancy
which decreased revenues $15,000. The increase in net income was
primarily due to decreased financing costs as a result of refinancing
the mortgage note encumbering the property at the end of 1996.
Interest expense for the three months ended June 30, 1997 was $22,000
less than the costs for the previous year, and, because of reduced
costs incurred in connection with securing the new loan, amortization
of financing costs was $26,000 less than the previous year. Net income
also increased because of a decrease in operating expenses, primarily
decreases in utilities of $36,000, payroll and related costs of
$8,000, professional fees of $2,000 and a decrease in insurance costs
of $2,000, partially offset by an increase in repairs and maintenance
costs of $31,000.
<PAGE>10
Total revenues for the six months ended June 30, 1997 increased
$7,000 to $2,278,000 from $2,271,000 for the six months ended June 30,
1996. Net income after depreciation and mortgage interest expense for
the six months ended June 30, 1997 increased $100,000 to net income of
$74,000 from a net loss after depreciation and mortgage interest
expense of $26,000 for the six months ended June 30, 1996. The
increase in revenues was primarily the result of increased rental
rates implemented at the property, which increased revenues by
$59,000, and an increase in miscellaneous income which increased
revenue by $14,000. These increases in revenues were partially offset
by a decrease in average occupancy from the previous year which
decreased revenues $65,000. In addition to the increased revenue, the
increase in net income was primarily due to decreased financing costs
as noted above. Interest expense for the six months ended June 30,
1997 was $37,000, and amortization of financing costs was $55,000,
less than the previous year.
Plantation Shopping Center
--------------------------
Total revenues for the three months ended June 30, 1997 increased
$163,000 to $605,000 from $442,000 for the three months ended June 30,
1996. Net income after depreciation and mortgage interest expense for
the three months ended June 30, 1997 increased $215,000 to $222,000
from $7,000 for the three months ended June 30, 1996. The increase in
revenues was primarily due to the increase rental escalation income
which increased revenue $93,000, while average occupancy increased 12%
to 88% from 76% for the period a year earlier, which increased revenue
$52,000, and percentage rents increased $34,000. These increases were
partially offset by lower rental rates on new and renewal leases at
the property which decreased income $16,000. The increase in net
income was primarily due to the increase in revenues and decreases in
operating expenses including interest expense of $67,000, repairs and
maintenance of $18,000, and professional fees of $12,000, partially
offset by increases in other expenses, primarily real estate taxes of
$21,000, financing costs of $16,000 and depreciation expense of
$9,000.
Total revenues for the six months ended June 30, 1997 increased
$111,000 to $960,000 from $849,000 for the six months ended June 30,
1996. Net income for the six months ended June 30, 1997 increased
$162,000 to $171,000 from $9,000 for the six months ended June 30,
1996. The increase in revenues was primarily due to an increase in
average occupancy of 12% to 88% from 76%, which increased income by
$85,000, while escalation income increased $109,000, and miscellaneous
revenues increased $27,000. These increases were partially offset by
decreases in rental rates negotiated on new and renewal leases which
decreased income $103,000 and a decrease in percentage rents of
$6,000. The increase in net income was primarily due to the increases
in revenue and decreases in operating expenses, primarily decreases in
interest expense of $127,000, repairs and maintenance expense of
$16,000, and insurance costs of $5,000, partially offset by increases
in real estate taxes of $43,000, financing costs of $31,000,
depreciation expense of 16,000, and professional fees of $6,000.
<PAGE>11
Cherry Hill Office Center
-------------------------
Total revenues for the three months ended June 30, 1997 increased
$79,000 to $444,000 from $365,000 for the three months ended June 30,
1996. Net income after depreciation and mortgage interest expense
increased $123,000 to $156,000 from $33,000 for the three months ended
June 30, 1996. The increase in revenues was primarily the result of
increased rental rates charged on new and renewal leases which
increased revenues $35,000, while average occupancy increased 2% to
78% from 76% for the period a year earlier, which increased revenues
$14,000, escalation income increased $28,000, and miscellaneous income
increased $2,000. The increase in net income was due to the increase
in revenues and decreases in utilities expense of $35,000, payroll and
related costs of $8,000, repairs and maintenance $4,000, insurance
costs of $4,000 and professional fees of $3,000, partially offset by
an increase in depreciation expense of $10,000.
Total revenues for the six months ended June 30, 1997 increased
$54,000 to $786,000 from $732,000 for the six months ended June 30,
1996. Net income for the six months ended June 30, 1997 increased
$152,000 to $176,000 from $24,000 for the six months ended June 30,
1996. The increase in revenues was primarily due to an increase in
average occupancy of 4% to 79% from 75%, which increased income by
$38,000, and increases in escalation income of $30,000, which were
partially offset by decreases in rental rates negotiated on new and
renewal leases which decreased income $13,000. The increase in net
income was due to the increases in revenue and a decrease in operating
expenses, primarily decreases in utilities expense of $56,000, repairs
and maintenance of $43,000, payroll and related costs of $13,000, and
interest expense of $4,000, partially offset by an increase in
depreciation expense of $19,000.
Investment in Joint Venture
---------------------------
Equity in net income of joint venture for the three months ended
June 30, 1997 decreased $151,000 to $55,000 from $206,000 for the
three months ended June 30, 1996. The decrease in net income was
primarily due to a decrease in revenues of $55,000 resulting from a
decreased demand for housing in the Atlanta area following the
conclusion of the Olympic Games in July of 1996. Property operating
expenses increased as compared to a year earlier, including an
increase in real estate taxes of $20,000, payroll and related costs of
$16,000, repairs and maintenance of $10,000, depreciation of $10,000,
advertising and promotion of $8,000, and professional fees of $5,000.
<PAGE>12
Equity in net income of joint venture for the six months ended
June 30, 1997 decreased $344,000 to $47,00 from $391,000 for the six
months ended June 30, 1996. The decrease in income for the six-month
period was primarily due to a decrease in the average occupancy rate
in the first half of 1997 of 6% to 85% as compared with 91% during the
first half of 1996. This decrease in occupancy, attributable to
decreased demand for housing in the Atlanta area following the
conclusion of the Olympic Games, reduced income $162,000 as compared
to a year earlier. In addition, net income decreased due to decreases
in miscellaneous income of $42,000 and increases in property operating
expenses including repairs and maintenance of $66,000, real estate
taxes of $38,000, payroll and related costs of $15,000, depreciation
of $12,000, and advertising and promotion of $9,000.
<PAGE>13
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
(a) Exhibits
(27) Financial Data Schedule
(b) Reports on Form 8-K
None
All other item numbers are omitted because they are not
applicable.
<PAGE>14
SIGNATURES
----------
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
SB PARTNERS
-----------------------------------
(Registrant)
By: SB PARTNERS REAL ESTATE CORPORATION
-----------------------------------
General Partner
Dated: August 14, 1997 By:/s/ John H. Streicker
-----------------------------
John H. Streicker
President
Dated: August 14, 1997 By:/s/ Elizabeth B. Longo
------------------------------
Elizabeth B. Longo
Chief Financial Officer
Dated: August 14, 1997 By:/s/ George N. Tietjen
-----------------------------
George N. Tietjen III
Vice President <PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 2,122,071
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,111,558
<PP&E> 61,342,553
<DEPRECIATION> (18,823,661)
<TOTAL-ASSETS> 46,752,521
<CURRENT-LIABILITIES> 1,340,779
<BONDS> 30,264,667
<COMMON> 0
0
0
<OTHER-SE> 15,147,075
<TOTAL-LIABILITY-AND-EQUITY> 46,752,521
<SALES> 0
<TOTAL-REVENUES> 4,630,748
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,872,438
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,197,844
<INCOME-PRETAX> (439,534)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (439,534)
<EPS-PRIMARY> (57)
<EPS-DILUTED> (57)
</TABLE>
