UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 1995
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
Commission File Number 0-21536
Brauvin Corporate Lease Program IV L. P.
(Exact name of registrant as specified in its charter)
Delaware 36 -3800611
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 South Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
(312) 443-0922
(Registrant's telephone number, including area code)
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 .
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
INDEX
Page
PART I Financial Information
Item 1. Consolidated Financial Statements. . . . . . . . . . . 3
Consolidated Balance Sheets at March 31, 1995
and December 31, 1994. 4
Consolidated Statements of Operations for the periods
January 1, 1995 to March 31, 1995 and January 1, 1994
to March 31, 1994 . 5
Consolidated Statements of Partners' Capital for the
period January 1, 1992 to March 31, 1995. . .. . . . . 6
Consolidated Statements of Cash Flows for the period
January 1, 1995 to March 31, 1995 and January 1, 1994
to March 31, 1994 . 7
Notes to Consolidated Financial Statements . . . . . . 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . 13
PART II Other Information
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . 15
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . 15
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . 15
Item 4. Submissions of Matters to a Vote of Security Holders . 15
Item 5. Other Information. . . . . . . . . . . . . . . . . . . 15
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . 15
SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . 16
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Consolidated Financial Statements
Except for the December 31, 1994 Consolidated Balance Sheet, the following
Consolidated Balance Sheet as of March 31, 1995, Consolidated Statements of
Operations for the three months ended March 31, 1995 and 1994, Consolidated
Statements of Partners' Capital for the period January 1, 1992 to March 31,
1995 and Consolidated Statements of Cash Flows for the three months ended
March 31, 1995 and 1994 for Brauvin Corporate Lease Program IV L.P. (the
"Partnership") are unaudited and have not been examined by independent public
accountants but reflect, in the opinion of the management, all adjustments
necessary to present fairly the information required. All such adjustments
are of a normal recurring nature.
These consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto included in the
Partnership's 1994 Annual Report on Form 10-K.
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
1995 1994
ASSETS
Investment in real estate, at cost:
Land $ 4,315,540 $ 4,315,540
Buildings and improvements 9,993,090 9,993,090
14,308,630 14,308,630
Less: accumulated depreciation (440,377) (374,342)
Net investment in real estate 13,868,253 13,934,288
Cash and cash equivalents 596,486 569,244
Deferred rent receivable 171,636 143,488
Tenant receivables 30,093 40,587
Due from affiliates 6,831 14,130
Prepaid offering costs 178,420 179,223
Organization costs (net of
accumulated amortization of $17,500
and $16,000, respectively) 12,500 14,000
Other assets 1,991 550
Total Assets $14,866,210 $14,895,510
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accounts payable and
accrued expenses $ 133,191 $ 103,361
Rent received in advance -- 50,006
Due to affiliates 5,674 802
Total Liabilities 138,865 154,169
MINORITY INTERESTS IN BRAUVIN
GWINNETT COUNTY VENTURE 717,487 726,640
PARTNERS' CAPITAL:
General Partners 10,794 10,794
Limited Partners 13,999,064 14,003,907
Total Partners' Capital 14,009,858 14,014,701
Total Liabilities and
Partners' Capital $14,866,210 $14,895,510
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended March 31,
1995 1994
INCOME:
Rental $401,447 $311,031
Interest 4,757 30,366
Other 13,193 --
Total income 419,397 341,397
EXPENSES:
Acquisition fees not capitalized -- 61,126
General and administrative 32,936 48,603
Management fees (Note 4) 4,370 2,876
Amortization of organization costs 1,500 1,500
Depreciation 66,035 56,871
Total expenses 104,841 170,976
Income before minority interests
in joint venture 314,556 170,241
Minority interests' share in Brauvin
Gwinnett County Venture's net income (14,687) (11,811)
Net income $299,869 $158,610
Net income allocated to the General
Partners $ -- $ 3,172
Net income allocated to the Limited
Partners $299,869 $155,438
Net income per Unit outstanding (a) $ .19 $ .10
(a) Net income per Unit was based on the average Units outstanding
during the period since they were of varying dollar amounts and percentages
based upon the dates Limited Partners were admitted to the Partnership and
additional Units were purchased through the Plan.
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
For the period from January 1, 1992 through March 31, 1995
Initial
Limited General Limited
Partner Partners Partners* Total
Balance, January 1, 1992 $1,000 $ -- $ -- $ 1,000
Withdrawals (1,000) -- -- (1,000)
Contributions -- -- 6,790,293 6,790,293
Selling commissions and
other offering costs -- -- (787,835) (787,835)
Net income -- 942 46,148 47,090
Cash distributions -- -- (75,484) (75,484)
Balance, December 31, 1992 -- 942 5,973,122 5,974,064
Contributions, net -- -- 9,299,798 9,299,798
Subscription receivables -- -- (78,500) (78,500)
Selling commissions and other
offering costs -- -- (1,115,998) (1,115,998)
Net income -- 9,852 482,765 492,617
Cash distributions -- -- (495,347) (495,347)
Balance, December 31, 1993 -- 10,794 14,065,840 14,076,634
Collection of subscription
receivables -- -- 78,500 78,500
Contributions, net -- -- 92,094 92,094
Selling commissions and
other offering costs (note 1) -- -- (18,072) (18,072)
Net income -- -- 1,030,281 1,030,281
Cash distributions -- -- (1,244,736) (1,244,736)
Balance, December 31, 1994 -- 10,794 14,003,907 14,014,701
Contributions, net -- -- 24,674 24,674
Selling Commissions and
other offering costs (Note 1) -- -- (4,819) (4,819)
Net income -- -- 299,869 299,869
Cash distributions -- -- (324,567) (324,567)
Balance, March 31, 1995 $ -- $ 10,794 $13,999,064 $14,009,858
* Total Units sold, including those raised through the Plan, at March 31,
1995, December 31, 1994 and 1993 were 1,620,741, 1,617,478 and 1,609,009,
respectively. Cash distributions to Limited Partners per Unit were $0.20,
$0.77 and $0.43 for the three months ended March 31, 1995, and the years
ended December 31, 1994 and 1993, respectively. Cash distributions to
Limited Partners per Unit are based on the average Units outstanding during
the period since they were of varying dollar amounts and percentages
based upon the dates Limited Partners were admitted to the Partnership and
additional Units were purchased through the distribution reinvestment plan.
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31,
1995 1994
Cash flows from operating activities:
Net income $299,869 $ 158,610
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 67,535 58,371
Minority interests in Brauvin Gwinnett
County Venture's net income 14,687 11,811
Acquisition fees not capitalized -- 61,126
Decrease (increase) in due from affiliates 7,299 (49,831)
Increase in deferred rent receivable (28,148) (27,672)
Decrease in rent receivable 10,494 --
Decrease in prepaid offering costs 803 --
(Increase) decrease in other assets (1,441) 10,234
Increase (decrease) in accounts payable
and accrued expenses 29,830 (39,028)
(Decrease) increase in rent received in advance (50,006) 43,138
Increase in due to affiliates 4,872 4,071
Total adjustments 55,924 72,220
Net cash provided by operating activities 355,794 230,830
Cash flows from investing activities:
Purchase of real estate -- (4,242,121)
Acquisition fees not capitalized -- (61,126)
Minority interests' share of distribution
from Brauvin Gwinnett County Venture (23,840) (10,431)
Net cash used in investing activities (23,840) (4,313,678)
Cash flows from financing activities:
Sale of Units, net of liquidations and
selling commissions 19,855 83,980
Payment for organization costs, other offering
costs and prepaid offering costs -- (510)
Cash distributions to Limited Partners (324,567) (238,205)
Net cash used in financing activities (304,712) (154,735)
Net increase (decrease) in cash and cash
equivalents 27,242 (4,237,583)
Cash and cash equivalents at beginning of period 569,244 4,803,350
Cash and cash equivalents at end of period $596,486 $ 565,767
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Brauvin Corporate Lease Program IV L.P. (the "Partnership") is a Delaware
limited partnership formed on August 7, 1991 for the purpose of acquiring debt
- -free ownership of existing, income-producing retail and other commercial
properties predominantly all of which will be subject to "triple-net" leases.
It is anticipated that these properties will be leased primarily to corporate
lessees of national and regional retail businesses, service providers and
other users consistent with "triple-net" lease properties. The leases will
provide for a base minimum annual rent and increases in rent such as through
participation in gross sales above a stated level, fixed increases on
specific dates or indexation of rent to indices such as the Consumer Price
Index. The General Partners of the Partnership, are Brauvin Realty Advisors
IV, Inc., Jerome J. Brault and Cezar M. Froelich. Brauvin Realty Advisors IV,
Inc. is owned by Messrs. Brault (50%) and Froelich (50%). Brauvin Securities,
Inc., an affiliate of the General Partners, is the selling agent of the
Partnership.
The Partnership filed a Registration Statement on Form S-11 with the
Securities and Exchange Commission which was declared effective on December
12, 1991. Per the terms of the Restated Limited Partnership Agreement of
the Partnership (the "Agreement"), the minimum of $1,200,000 of limited
partnership interests of the Partnership (the "Units") necessary for the
Partnership to commence operations was achieved on April 27, 1992. The
Partnership's offering was anticipated to close on December 11, 1992 but
the Partnership obtained an extension until December 11, 1993. A total of
1,600,831 Units were sold to the public through the initial offering at
$10 per Unit ($16,008,310).
An additional $272,168 of Units was sold through the Partnership's
distribution reinvestment plan (the "Plan") as of March 31, 1995, and
$72,113 of Units sold through the public offering, have been purchased by
the Partnership from investors liquidating their investment and have been
retired. As of March 31, 1995, the Plan participants own Units which
approximate 2% of the total Units sold.
The Partnership has acquired the land and buildings underlying a Steak
n Shake restaurant, a Children's World Learning Center, two Chuck E. Cheese's
restaurants, a Mrs. Winner's Chicken and Biscuit restaurant, a House of Fabrics
store, a Volume ShoeSource store, an East Side Mario's restaurant, a
Blockbuster Video store and a Walden Books store. In addition, the
Partnership had acquired a 70.2% equity interest in a joint venture with two
entities affiliated with the Partnership. This venture owns the land and
building underlying a CompUSA store.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Method
The accompanying financial statements have been prepared using the accrual
method of accounting.
Rental Income
Rental income is recognized on a straight-line basis over the life of the
related leases. Differences between rental income earned and amounts due per
the respective lease agreements are credited or charged, as applicable, to
deferred rent receivable.
Federal Income Taxes
Under the provisions of the Internal Revenue Code, the Partnership's income
and losses are reportable by the partners on their respective income tax
returns. Accordingly, no provision is made for Federal income taxes in the
Consolidated Financial Statements. However, in certain instances, the
Partnership has been required under applicable state law to remit directly to
the tax authorities amounts representing withholding from distributions paid
to partners.
Consolidation of Joint Venture
The Partnership owns a 70.2% equity interest in a joint venture, which owns
the land and the buildings underlying one CompUSA store. The accompanying
financial statements have consolidated 100% of the assets, liabilities,
operations and partners' capital of Brauvin Gwinnett County Venture. All
significant intercompany accounts have been eliminated.
Investment in Real Estate
The operating properties acquired by the Partnership are stated at cost
including acquisition costs, net of accumulated depreciation. Depreciation
expense is computed on a straight-line basis over approximately 39 years.
Organization and Offering Costs
Organization costs represent costs incurred in connection with the
organization and formation of the Partnership. Organization costs will be
amortized over a period of five years using the straight-line method.
Offering costs represent costs incurred in selling Units, such as the
printing of the Prospectus and marketing materials and will be recorded as
a reduction of Limited Partners' capital.
The General Partners have guaranteed payment of any organization and
offering costs that exceed 2% of the gross proceeds of the Partnership's
offering. Prepaid offering costs represent amounts in excess of the defined
percentages of the gross proceeds. Subsequently, gross proceeds are expected
to increase due to the purchase of additional Units through the distribution
reinvestment Plan (the "Plan") and the prepaid offering costs will be
transferred to offering costs and treated as a reduction in Partners' Capital.
<PAGE>
Cash and Cash Equivalents
Cash and cash equivalents include all highly liquid debt instruments with
an original maturity within three months from date of purchase.
2) PARTNERSHIP AGREEMENT
Distributions
All Operating Cash Flow, as defined in the Partnership Agreement (the
"Agreement"), during the period commencing with the date the Partnership
accepts subscriptions for Units totaling $1,200,000 and terminating on the
Termination Date, as defined in the Prospectus, shall be distributed to the
Limited Partners on a quarterly basis. Distributions of Operating Cash Flow,
if available, shall be made within 45 days following the end of each calendar
quarter, commencing with the first quarter following the Termination Date.
Operating Cash Flow during such period shall be distributed as follows:
(a) first, to the Limited Partners until the Limited Partners receive an
amount equal to a 9% non-cumulative, non-compounded annual return on Adjusted
Investment, as defined in the Agreement, commencing on the last day of the
calendar quarter in which the Unit was purchased (the "Current Preferred
Return"); and (b) thereafter, any remaining amounts will be distributed
98% to the Limited Partners (on a pro rata basis) and 2% to the General
Partners.
The net proceeds of a sale or refinancing of a Partnership property shall
be distributed as follows:
first, pro rata to the Limited Partners until each Limited Partner
has received an amount equal to a 10% cumulative, non-compounded,
annual return of Adjusted Investment (the "Cumulative Preferred
Return");
second, to the Limited Partners until each Limited Partner has
received an amount equal to the amount of his Adjusted Investment,
apportioned pro rata based on the amount of the Adjusted Investment;
thereafter, 95% to the Limited Partners (apportioned pro rata based
on Units) and 5% to the General Partners.
Profits and Losses
Net profits and losses from operations of the Partnership [computed
without regard to any allowance for depreciation or cost recovery deductions
under the Internal Revenue Code of 1986, as amended (the "Code")] for each
taxable year of the Partnership shall be allocated to each Partner in the
same ratio as the cash distributions received by such Partner attributable
to that period bears to the total cash distributed by the Partnership. In
the event that there are no cash distributions, net profits and losses from
operations of the Partnership (computed without regard to any allowance for
depreciation or cost recovery deductions under the Code) shall be allocated
99% to the Limited Partners and 1% to the General Partners.
Notwithstanding the foregoing, all depreciation and cost recovery deductions
allowed under the Code shall be allocated 2% to the General Partners and 98%
to the Class A Investors, as defined in the Agreement.
The net profit of the Partnership from any sale or other disposition of
a Partnership property shall be allocated (with ordinary income being
allocated first) as follows: (a) first, an amount equal to the aggregate
deficit balances of the Partners' Capital Accounts, as such term is defined
in the Agreement, shall be allocated to each Partner who or which has a
deficit Capital Account balance in the same ratio as the deficit
balance of such Partner's Capital Account bears to the aggregate of the
deficit balances of all Partners' Capital Accounts; (b) second, to the
Limited Partners until the Capital Account balances of the Limited Partners
are equal to any unpaid Cumulative Preferred Return as of such date;
(c) third, to the Limited Partners until the Capital Account balances of
the Limited Partners are equal to the sum of the amount of their Adjusted
Investment plus any unpaid Cumulative Preferred Return; (d) fourth, to the
General Partners until their Capital Account balances are equal to any
previously subordinated fees; and (e) thereafter, 95% to the Limited
Partners and 5% to the General Partners. The net loss of the Partnership
from any sale or other disposition of a Partnership property shall be
allocated as follows: (a) first, an amount equal to the aggregate positive
balances in the Partners' Capital Accounts, to each Partner in the same
ratio as the positive balance in such Partner's Capital Account bears to
the aggregate of all Partners' positive Capital Accounts balances; and
(b) thereafter, 95% to the Limited Partners and 5% to the General Partners.
Distributions to Limited Partners for the first quarter of 1995 will be
made to investors receiving quarterly distributions on May 15, 1995 and to
investors receiving monthly distributions on approximately April, May and
June 15, 1995, in the aggregate amount of $321,412.
(3) TRANSACTIONS WITH RELATED PARTIES
The Partnership pays an affiliate of the General Partners an acquisition
fee in the amount of up to 5% of the gross proceeds of the Partnership's
offering for the services rendered in connection with the process
pertaining to the acquisition of a property. Acquisition fees related to
the properties not ultimately purchased by the Partnership are expensed as
incurred.
The Partnership paid an affiliated entity a non-accountable selling
expense allowance in an amount equal to 2% of the gross proceeds of the
Partnership's offering, a portion of which may be reallowed to participating
dealers.
In the event that the Partnership does not use more than 2% of the gross
proceeds of the offering for the payment of legal, accounting, escrow, filing
and other fees incurred in connection with the organization or formation of
the Partnership, the Partnership may pay the General Partners any unused
portion of the 2% of the gross proceeds of the offering allowed for
organization and offering expenses, not to exceed 1/2% of the gross proceeds
of the offering. The General Partners will use such funds to pay certain
expenses of the offering incurred by them not covered by the definition of
organization and offering expenses.
An affiliate of the General Partners provides leasing and re-leasing
services to the Partnership in connection with the management of Partnership
properties. The property management fee payable to an affiliate of the
General Partners is 1% of the gross revenues of each Partnership property.
An affiliate of the General Partners or the General Partners will receive
a real estate brokerage commission in connection with the disposition of
Partnership properties. Such commission will be in an amount equal to the
lesser of: (i) 3% of the sale price of the property; or (ii) 50% of the real
estate commission customarily charged for similar services in the locale of
the property being sold; provided, however, that receipt by the General
Partners or one of their affiliates of such commission is subordinated to
receipt by the Limited Partners of their Current Preferred Return.
An affiliate of one of the General Partners provides securities and real
estate counsel to the Partnership.
Fees, commissions and other expenses paid or payable to the General
Partners or its affiliates for the three months ended March 31, 1995 and 1994
were as follows:
1995 1994
Acquisition fees $ -- $244,503
Selling commissions 4,016 2,999
Management fees 4,370 2,876
Reimbursable operating
expense 17,400 --
Legal fees 1,050 900
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Liquidity and Capital Resources
The Partnership commenced an offering to the public on December 12, 1991 of
3,300,000 Units, 300,000 of which are available only through the Partnership's
distribution reinvestment plan (the "Plan"). The offering was anticipated to
close on December 11, 1992, but was extended until December 11, 1993 with
the appropriate governmental approvals. None of the Units were subscribed
and issued between December 12, 1991 and December 31, 1991, pursuant to the
Partnership's public offering. The offering was conditioned upon the sale of
$1,200,000, which was achieved on April 27, 1992. The Partnership raised a
total of $16,008,310 through the initial offering and an additional $272,168
through the distribution reinvestment plan through March 31, 1995.
As of March 31, 1995, Units valued at $72,113 have been purchased by the
Partnership from Limited Partners liquidating their original investment and
have been retired.
The General Partners will be adopting an enhancement to the Partnership's
Distribution Reinvestment Plan effective August, 1995. This enhancement will
permit unit holders to reinvest at a unit price that will be adjusted to
reflect any return of investor capital generated through property sales. In
addition, any unit liquidations will also occur at the adjusted unit price.
In 1992, the Partnership purchased the land and buildings underlying a Steak
n' Shake restaurant, a Children's World Learning Center and a PetsMart retail
store. Due to PetsMart's inability to comply with certain Partnership's
acquisition requirements, PetsMart repurchased the store from the Partnership
in March 1993. In 1993, the Partnership purchased the land and buildings of
two Chuck E. Cheese's restaurants, a Mrs. Winner's Chicken & Biscuit
restaurant, a SoFro Fabric store, a Volume ShoeSource store and purchased a
70.2% equity interest in an affiliated joint venture which acquired the land
and building underlying a CompUSA computer superstore. In 1994, the
Partnership purchased the land and buildings underlying an East Side
Mario's restaurant, a Blockbuster Video store and a Walden Books store.
The Partnership is now fully invested in properties with the exception of
funds raised through the Plan. These operating properties are expected to
generate cash flow for the Partnership after deducting certain operating and
general and administrative expenses from their rental income.
Below is a table summarizing the historical data for distribution rates per
annum:
Distribution
Date 1995 1994 1993 1992
February 15 8.00% 6.50% 6.00% --
May 15 8.00% 7.00 6.00 3.68%
August 15 8.00 5.00 7.00
November 15 10.00 5.50 6.00
<PAGE>
Future increases in the Partnership's distributions will depend on
increased sales at the Partnership's properties, resulting in additional
percentage rent. Rental increases, to a lesser extent, may occur due to
increases in receipts from certain leases based upon increases in the
Consumer Price Index or scheduled increases of base rent.
Results of Operation - Three Months Ended March 31, 1995 and 1994
Results of operations for the three months ended March 31, 1995 reflected
net income of $299,869 compared to net income of $158,610 for the three
months ended March 31, 1994, an increase of approximately $141,000. The
increase in net income is due to the first quarter of 1995 reflecting a full
first quarter of operations of three properties acquired during the first
quarter of 1994.
First quarter total income was $419,397 in 1995 as compared to $341,397 in
1994, an increase of approximately $78,000. The increase in rental income is
due to the first quarter of 1995 reflecting a full first quarter of operations
of three properties acquired during the first quarter of 1994.
First quarter total expenses were $104,841 in 1995 as compared to $170,976
in 1994, a decrease of approximately $66,000. The decrease in total expenses
was mainly due to the decrease in acquisition fees of $61,126 as a result of
the Partnership not acquiring any additional properties during the first
quarter of 1995.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings.
On October 14, 1993, an affiliate of the Partnership, Brauvin, Inc., brought
a lawsuit against an unaffiliated seller due to the seller's alleged refusal
to proceed under the terms of a purchase and sale agreement Brauvin, Inc.
entered into to acquire three properties in Jacksonville, Florida. In this
lawsuit, Brauvin, Inc. has sought specific performance of the purchase and
sale agreement to require the unaffiliated seller to sell the subject
properties to Brauvin, Inc.. Brauvin, Inc. subsequently amended its complaint
to add the tenant of the properties, Rally's, Inc., as an additional defendant
seeking an unspecified amount of damages. Rally's, Inc. was added because of
its activities which Brauvin, Inc. alleges have tortiously interfered with the
business relations between Brauvin, Inc. and the seller.
In response to the lawsuit, the seller made a counterclaim against Brauvin,
Inc. with counts for slander of title, tortious interference with an
advantageous business relationship, conspiracy and to quiet title. The
seller has also sued an employee of Brauvin, Inc. and the Partnership. The
counterclaim is seeking damages in an amount in excess of $2,000,000, together
with punitive damages. The Partnership filed a motion to dismiss as the
Partnership believes the Florida court does not have jurisdiction over the
Partnership. During 1994, the motion to dismiss was denied. The Partnership
made attempts to settle but did not succeed. The Partnership intends to
vigorously defend itself in this action.
ITEM 2. Changes in Securities.
None.
ITEM 3. Defaults Upon Senior Securities.
None.
ITEM 4. Submission Of Matters To a Vote of Security Holders.
None.
ITEM 5. Other Information.
None.
ITEM 6. Exhibits and Reports On Form 8-K.
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of l934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BY: Brauvin Realty Advisors IV, Inc.
Corporate General Partner of
Brauvin Corporate Lease Program IV L.P.
BY: /S/ Jerome J. Brault
Jerome J. Brault
Chairman of the Board of Directors,
President and Chief Executive Officer
DATE: May 12, 1995
BY: /s/ Thomas J. Coorsh
Thomas J. Coorsh
Chief Financial Officer and Treasurer
DATE: May 12, 1995
