UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
AMENDMENT NO. 2
[X] Annual Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 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)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on
which registered
None None
Securities registered pursuant to Section 12(g) of the Act:
Limited Partnership Interests
(Title of class)
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 by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K (Section 229.405 of this chapter) is not
contained herein, and will not be contained, to the best of registrant's
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K.
[ X ]
The aggregate sales price of the limited partnership interests of the
registrant (the "Units") to unaffiliated investors of the registrant was
$16,008,310 at December 31, 1993. This does not reflect market value.
This is the price at which the Units were sold to the public during the
initial offering period. There is no current market for the Units nor have
any Units been sold within the last 60 days prior to this filing except
for Units sold to or by the registrant pursuant to the registrant's
distribution reinvestment plan, as described in the prospectus of the
registrant dated December 12, 1991 (the "Prospectus") as supplemented
March 25, 1992 and June 17, 1993 and filed pursuant to Rule 424(b)
and Rule 424(c) under the Securities Act of 1933, as amended.
Portions of the Prospectus are incorporated by reference into Parts II,
III and IV of this Annual Report on Form 10-K.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
BY: Brauvin Realty Advisors IV, Inc.
Corporate General Partner
By: /s/ Jerome J. Brault
Jerome J. Brault
Chairman of the Board of Directors,
President and Chief Executive
Officer
By: /s/ James L. Brault
James L. Brault
Executive Vice President
and Secretary
By: /s/ B. Allen Aynessazian
B. Allen Aynessazian
Chief Financial Officer and
Treasurer
INDIVIDUAL GENERAL PARTNERS
/s/ Jerome J. Brault
Jerome J. Brault
DATED: August 20, 1996 Cezar M. Froelich
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE
Page
Independent Auditors' Report. . . . . . . . . . . . . . . . . . . F-2
Consolidated Financial Statements:
Consolidated Balance Sheets, December 31, 1995 and 1994 . . F-3
Consolidated Statements of Operations, for the years ended
December 31, 1995, 1994 and 1993 . . . . . . . . . . . . . F-4
Consolidated Statements of Partners' Capital, for the years ended
December 31, 1995, 1994 and 1993 . . . . . . . . . . . . . F-5
Consolidated Statements of Cash Flows, for the years ended
December 31, 1995, 1994 and 1993 . . . . . . . . . . . . . F-6
Notes to Consolidated Financial Statements. . . . . . . . . F-8
Schedule III - Real Estate and Accumulated Depreciation,
December 31, 1995. . . . . . . . . . . . . . . . . . . . . . . . F-17
All schedules provided for in Item 14(a)(2) of Form 10-K are either not
required, not applicable or immaterial.
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Partners
Brauvin Corporate Lease Program IV L.P.
Chicago, Illinois
We have audited the accompanying consolidated balance sheets of Brauvin
Corporate Lease Program IV L.P. (a limited partnership) and subsidiary
as of December 31, 1995 and 1994, and the related consolidated
statements of operations, partners' capital, and cash flows for each of
the three years in the period ended December 31, 1995. Our audits also
included the financial statement schedule listed in the Index to
Consolidated Financial Statements and Schedule on page F-1. These
consolidated financial statements and the financial statement schedule
are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these consolidated financial
statements and the financial statement schedule based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly,
in all material respects, the financial position of Brauvin Corporate
Lease Program IV L.P. and its subsidiary at December 31, 1995 and 1994,
and the results of their operations and their cash flows for each of the
three years in the period ended December 31, 1995 in conformity with
generally accepted accounting principles. Also, in our opinion, such
financial statement schedule, when considered in relation to the basic
consolidated financial statements taken as a whole, presents fairly in
all material respects the information set forth therein.
/S/ Deloitte & Touche LLP
Chicago, Illinois
February 9, 1996
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
CONSOLIDATED BALANCE SHEETS
December 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 (638,479) (374,342)
Net investment in real estate 13,670,151 13,934,288
Cash and cash equivalents 711,167 569,244
Tenant receivables -- 40,587
Deferred rent receivable 241,119 143,488
Due from affiliates 7,627 14,130
Prepaid offering costs 175,983 179,223
Organization costs (net of accumulated
amortization: 1995-$22,000;1994-$16,000) 8,000 14,000
Other assets 36,901 550
Total Assets $14,850,948 $14,895,510
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accounts payable and accrued expenses $ 33,660 $ 103,361
Rent received in advance 67,205 50,006
Due to affiliates -- 802
Total Liabilities 100,865 154,169
MINORITY INTERESTS IN BRAUVIN
GWINNETT COUNTY VENTURE 711,056 726,640
PARTNERS' CAPITAL:
General Partners 10,794 10,794
Limited Partners 14,028,233 14,003,907
Total Partners' Capital 14,039,027 14,014,701
Total Liabilities and Partners' Capital $14,850,948 $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 years ended December 31, 1995, 1994 and 1993
1995 1994 1993
INCOME:
Rental (Note 4) $1,643,736 $1,571,077 $639,565
Interest 31,777 37,754 124,814
Other 22,938 13,865 --
Total income 1,698,451 1,622,696 764,379
EXPENSES:
Acquisition fees not capitalized -- 97,334 113,224
General and administrative 146,480 164,081 45,650
Management fees (Note 3) 16,428 14,996 6,770
Amortization of organization costs 6,000 6,000 6,000
Depreciation 264,137 254,972 102,314
Total expenses 433,045 537,383 273,958
Income before minority interests in
joint venture 1,265,406 1,085,313 490,421
Minority interests' share in
Brauvin Gwinnett County Venture's
net(income) loss (61,896) (55,032) 2,196
Net income $1,203,510 $1,030,281 $ 492,617
Net income allocated to the General
Partners $ -- $ -- $ 9,852
Net income allocated to the Limited
Partners $1,203,510 $1,030,281 $ 482,765
Net income per Unit outstanding (a) $ 0.74 $ 0.64 $ 0.42
(a) Net income per Unit was based on the average Units outstanding
during the year 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 years ended December 31, 1995, 1994 and 1993
General Limited
Partners Partners* Total
Balance, January 1, 1993 $942 $5,973,122 $5,974,064
Contributions -- 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
Contributions, net -- 92,094 92,094
Subscription receivables -- 78,500 78,500
Selling commissions and
other offering costs -- (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 -- 136,937 136,937
Selling commissions and other
offering costs -- (19,395) (19,395)
Net income -- 1,203,510 1,203,510
Cash distributions -- (1,296,726) (1,296,726)
Balance, December 31, 1995 $10,794 $14,028,233 $14,039,027
* Total Units outstanding, including those raised through the Plan, at
December 31, 1995, 1994 and 1993 were 1,631,872, 1,617,478 and 1,609,009,
respectively. Cash distributions to Limited Partners per Unit were $0.80,
$0.77 and $0.43 for the years ended December 31, 1995, 1994 and 1993,
respectively. Cash distributions to Limited Partners per Unit are based
on the average Units outstanding during the year 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 years ended December 31, 1995, 1994 and 1993
1995 1994 1993
Cash flow from operating activities:
Net income $1,203,510 $1,030,281 $ 492,617
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 270,137 260,972 108,314
Acquisition fees not capitalized -- 97,334 113,224
Minority interests in Brauvin Gwinnett
County Venture's net income (loss) 61,896 55,032 (2,196)
Decrease (increase) in tenant receivable 40,587 (40,587) --
Increase in deferred rent receivable (97,631) (124,377) (19,111)
Decrease (increase) in due from affiliates 6,503 (9,601) (3,578)
(Increase) decrease in other assets (36,351) 37,022 (8,034)
(Decrease) increase in accounts payable
and accrued expenses (69,701) (62,809) 86,589
Increase in rent received in advance 17,199 44,006 6,000
(Decrease)increase in due to affiliates (802) (16,499) 17,301
Net cash provided by operating activities 1,395,347 1,270,774 791,126
Cash flow from investing activities:
Purchase of real estate -- (4,242,122) (7,869,777)
Rescission of prior year purchase -- -- 1,890,000
Acquisition fees not capitalized -- (97,334) (113,224)
Net cash used in investing activities -- (4,339,456) (6,093,001)
Cash flow from financing activities:
Sale of Units, net of liquidations, selling
commissions and other offering costs 120,782 155,534 8,290,900
Organization costs and offering costs -- (4,701) (101,752)
Cash distributions to Limited Partners (1,296,726)(1,244,736) (495,347)
Cash distribution to minority interest
in Brauvin Gwinnett County Venture (77,480) (71,521) --
Net cash (used in) provided by financing
activities (1,253,424)(1,165,424) 7,693,801
Net increase (decrease) in cash and
cash equivalents 141,923 (4,234,106) 2,391,926
Cash and cash equivalents at beginning
of year 569,244 4,803,350 2,411,424
Cash and cash equivalents at end of year $ 711,167 $ 569,244 $4,803,350
See accompanying notes to consolidated financial statements.
<PAGE>
Supplemental Notes to Statements of Cash Flows:
Amounts due to affiliates of $112,857 at December 31, 1992 relating to
the purchase of real estate were paid in 1993.
See accompanying notes to consolidated financial statements
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 1995, 1994 and 1993
(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 (beneficially)(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 offering at $10 per Unit ($16,008,310). Through
December 31, 1995, 1994 and 1993, the Partnership has sold $16,402,428,
$16,240,804 and $16,090,204 of Units, respectively. These totals
include $394,118, $232,494 and $81,494 of Units, respectively, raised by
Limited Partners who utilized their distributions of Operating Cash Flow
to purchase additional Units through the Partnership's distribution
reinvestment plan (the "Plan"). Units valued at $83,706, $58,540 and
$184 have been purchased by the Partnership from Limited Partners
liquidating their investment in the Partnership and have been retired as
of December 31, 1995, 1994, and 1993, respectively. As of
December 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 has 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
Management's Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from these
estimates.
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. Depreciation expense is computed on a
straight-line basis over approximately 39 years.
In 1995, the Partnership adopted Statement of Financial Accounting
Standards No. 121, "Accounting for the Impairment of Long-Lived Assets"
(SFAS 121). In conjunction with the adoption of SFAS 121, the
Partnership performed an analysis of its long-lived assets, and the
Partnership's management determined that there were no events or changes
in circumstances that indicated that the carrying amount of the assets
may not be recoverable. Accordingly, no impairment loss has been
recorded in the accompanying financial statements.
Organization and Offering Costs
Organization costs represent costs incurred in connection with the
organization and formation of the Partnership. Organization costs are
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 have been recorded as
a reduction of Limited Partners' capital.
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
Plan and the prepaid offering costs will be transferred to offering
costs and treated as a reduction in Partners' Capital.
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.
Estimated Fair Value of Financial Instruments
Disclosure of the estimated fair value of financial instruments is
made in accordance with the requirements of Statement of Financial
Accounting Standards No. 107, "Disclosures About Fair Value of Financial
Instruments." The estimated fair value amounts have been determined by
using available market information and appropriate valuation
methodologies. However, considerable judgement is necessarily required
in interpreting market data to develop estimates of fair value.
The fair value estimates presented herein are based on information
available to management as of December 31, 1995 and 1994, but may not
necessarily be indicative of the amounts that the Partnership could
realize in a current market exchange. The use of different assumptions
and/or estimation methodologies may have a material effect on the
estimated fair value amounts. Although management is not aware of any
factors that would significantly affect the estimated fair value
amounts, such amounts have not been comprehensively revalued for
purposes of these financial statements since that date, and current
estimates of fair value may differ significantly from amounts presented
herein.
The carrying amounts of the following items are a reasonable estimate
of fair value: cash and cash equivalents; due from affiliates; accounts
payable and accrued expenses; rent received in advance; and due to
affiliates.
(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 or are paid monthly within 15
days of the end of the month, depending upon the Limited Partner's
preference, 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; and
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.
(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 years ended December 31, 1995, 1994
and 1993 were as follows:
1995 1994 1993
Acquisition fees $ -- $244,503 $377,340
Selling commissions 16,155 15,060 178,905
Management fees 16,428 14,996 6,770
Reimbursable operating expense 61,973 57,835 ---
Legal fees 4,885 46,955 54,910
Non-accountable selling expenses -- --- 96,917
(4) LEASES
The Partnership's rental income is principally obtained from tenants
through rental payments provided under triple-net noncancelable
operating leases. The leases provide for a base minimum annual rent and
increases in rent such as through participation in gross sales above a
stated level.
The following is a schedule of noncancelable future minimum rental
payments due to the Partnership under operating leases of Partnership
properties as of December 31, 1995:
Year Ending December 31:
1996 $ 1,382,887
1997 1,373,608
1998 1,391,902
1999 1,443,065
2000 1,458,158
Thereafter 11,803,210
$ 18,852,830
Additional rent based on percentages of tenant sales increases was
$21,620 and $11,175 in 1995 and 1994, respectively.
<PAGE>
<TABLE>
SCHEDULE III
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 1995
<CAPTION> Gross Amount at Which Carried
Initial Cost at Close of Period
Buildings Cost of Buildings
Encumbrances and Subsequent and Accumulated Date
Description (c) Land Improvements Improvements Land Improvements Total(a) Depreciation (b) Acquired
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Steak n' Shake $0 $ 427,872 $ 618,525 $0 $ 427,872 $ 618,525 $ 1,046,397 $ 64,348 5/92
Children's World
Learning Center 0 123,962 325,827 0 123,962 325,827 449,789 43,926 8/92
Chuck E. Cheese's 0 224,335 976,601 0 224,335 976,601 1,200,936 64,679 4/93
Chuck E. Cheese's 0 153,722 864,307 0 153,722 864,307 1,018,029 73,083 4/93
Mrs. Winner's
Chicken & Biscuit 0 278,340 363,983 0 278,340 363,983 642,323 26,819 5/93
House of Fabrics 0 344,393 1,167,573 0 344,393 1,167,573 1,511,966 72,475 7/93
Volume Shoesource
Store 0 766,724 954,704 0 766,724 954,704 1,721,428 56,248 9/93
CompUSA Store 0 663,681 1,811,959 0 663,681 1,811,959 2,475,640 99,129 11/93
East Side Mario's 0 538,257 976,254 0 538,257 976,254 1,514,511 48,274 1/94
Blockbuster Video
Store 0 248,168 708,162 0 248,168 708,162 956,330 32,782 2/94
Walden Books Store 0 546,086 1,225,195 0 546,086 1,225,195 1,771,281 56,716 2/94
$0 $4,315,540 $9,993,090 $0 $4,315,540 $9,993,090 $14,308,630 $638,479
<FN>
<F1>
NOTES:
(a) The cost of this real estate is $14,308,630 for tax purposes (unaudited). The buildings are depreciated over
approximately 35 years using the straight line method. The properties were constructed between 1969 and 1993.
(b) The following schedule summarizes the changes in the Partnership's real estate and accumulated depreciation balances:
</FN>
<CAPTION>
Real estate 1995 1994 1993
<S> <C> <C> <C>
Balance at beginning of year $14,308,630 $10,066,508 $ 3,454,263
Deductions - 1992 Purchase rescinded in 1993 -- -- (1,958,077)
Additions - land and buildings 0 4,242,122 8,570,322
Balance at end of year $14,308,630 $14,308,630 $ 10,066,508
Accumulated depreciation 1995 1994 1993
Balance at beginning of year $ 374,342 $ 119,370 $ 17,056
Provision for depreciation 264,137 254,972 102,314
Balance at end of year $ 638,479 $ 374,342 $ 119,370
<FN>
<F2>
(c) Encumbrances - Brauvin Corporate Lease Program L.P. IV did not borrow cash in order to purchase its properties.
100% of the land and buildings were paid for with funds contributed by the Limited Partners.
</FN>
</TABLE>
