SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
- - - - - - - - - - - - -
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 1996
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 033-80104
GRANITE DEVELOPMENT PARTNERS, L.P.
- -----------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 34-1754061
- ---------------------------- ------------------
(State or other jurisdiction (I. R. S. Employer
of incorporation or organization) Identification No)
10800 Brookpark Road Cleveland, Ohio 44130
- ----------------------------------------- ---------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 216-267-1200
------------
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 and 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
PART I. FINANCIAL INFORMATION
<TABLE>
GRANITE DEVELOPMENT PARTNERS, L.P.
(A Delaware Limited Partnership)
BALANCE SHEETS
<CAPTION>
October 31, January 31,
1996 1996
----------- -----------
(Unaudited)
<S> <C> <C>
ASSETS
LAND $ 5,458,392 $11,567,790
LAND IMPROVEMENTS 1,763,686 711,034
----------- ----------
7,222,078 12,278,824
RESTRICTED CASH EQUIVALENTS 4,286,976 1,308,453
MORTGAGE NOTES RECEIVABLE 5,901,253 4,413,089
INVESTMENTS IN AND ADVANCES TO
JOINT VENTURES 24,272,402 22,686,561
OTHER ASSETS
Mortgage procurement costs, net of
accumulated amortization of
$1,331,950 at October 31, 1996 and
$973,515 at January 31, 1996 940,751 1,282,186
Organization costs, net of
accumulated amortization of
$408,809 at October 31, 1996 and
$287,034 at January 31, 1996 339,308 461,083
Cash 65,423 3,635,578
Interest receivable 5,546,055 3,701,612
Administration fee receivable 85,000 -
----------- -----------
6,976,537 9,080,459
----------- -----------
$48,659,246 $49,767,386
=========== ===========
LIABILITIES, WARRANTS,
PARTNERS' SPECIAL UNITS
& PARTNERS' DEFICIT
SENIOR NOTES PAYABLE $36,000,000 $36,000,000
MORTGAGE NOTES PAYABLE 1,090,765 5,110,025
LOAN PAYABLE - SUNRISE 921,768 731,768
OTHER LIABILITIES
Accounts payable 312,859 133,935
Accrued fees, partners 1,018,793 173,220
Accrued interest 1,931,394 971,116
Accrued real estate taxes 153,704 281,885
Deposits 2,545,998 1,618,514
Deferred income 4,705,743 3,368,908
----------- -----------
10,668,491 6,547,578
WARRANTS (TEMPORARY) 1,000,080 1,000,080
PARTNERS' EQUITY (DEFICIT)
Partners' special units 9,000,000 9,000,000
Partners' deficit (10,021,858) (8,622,065)
----------- ----------
(1,021,858) 377,935
----------- ----------
$48,659,246 $49,767,386
=========== ===========
<FN>
See notes to financial statements.
</FN>
</TABLE>
<TABLE>
GRANITE DEVELOPMENT PARTNERS, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
October 31, October 31,
-------------------------- ---------------------------
1996 1995 1996 1995
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
REVENUES
Sales of developed
property $ 8,681,058 $ 115,200 $ 8,748,058 $ 115,200
Cost of sales (6,134,269) (115,270) (6,181,971) (136,286)
----------- ----------- ----------- -----------
2,546,789 (70) 2,566,087 (21,086)
Interest 188,443 213,079 674,743 522,989
Commission 62,836 50,424 138,972 89,158
Other 17,541 76,126 75,605 76,126
----------- ----------- ----------- -----------
2,815,609 339,559 3,455,407 667,187
----------- ----------- ----------- -----------
EXPENSES
Interest 1,051,425 1,144,508 3,300,831 3,242,684
Fees, partners 499,648 339,966 1,018,793 817,159
Real estate taxes 84,546 50,924 225,580 379,195
Operating and
other 191,574 13,770 315,614 318,072
Amortization 167,773 156,066 480,210 457,506
----------- ----------- ----------- -----------
1,994,966 1,705,234 5,341,028 5,214,616
----------- ----------- ----------- -----------
820,643 (1,365,675) (1,885,621) (4,547,429)
Income from
joint ventures 123,786 518,258 485,828 417,502
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 944,429 $ (847,417) $(1,399,793) $(4,129,927)
=========== =========== =========== ===========
<FN>
See notes to financial statements.
</FN>
</TABLE>
<TABLE>
GRANITE DEVELOPMENT PARTNERS, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' DEFICIT
<CAPTION>
Sunrise FC-Granite,
Land Co. Inc. Total
-------- ------------ ------------
<S> <C> <C> <C>
Balance at November 15, 1993 $ - $ - $ -
(inception)
Initial capital contribution 100 300 400
Capital contribution - 1,000,000 1,000,000
Reduction of partners' equity
related to contribution
of land - (3,137,082) (3,137,082)
Reduction of partners' equity
related to purchase of land
from Sunrise - (1,350,227) (1,350,227)
Net loss - (863,561) (863,561)
-------- ---------- ----------
Balance at January 31, 1994 100 (4,350,570) (4,350,470)
Distribution of interest on
special units - (963,870) (963,870)
Net loss (35,352) (3,499,845) (3,535,197)
-------- ---------- ----------
Balance at January 31, 1995 (35,252) (8,814,285) (8,849,537)
Net income 2,275 225,197 227,472
-------- ---------- ----------
Balance at January 31, 1996 (32,977) (8,589,088) (8,622,065)
Net loss for the nine months
ended October 31, 1996
(unaudited) (13,998) (1,385,795) (1,399,793)
-------- ------------ ------------
Balance at October 31, 1996
(unaudited) $(46,975) $ (9,974,883) $(10,021,858)
======== ============ ============
<FN>
See notes to financial statements.
</FN>
</TABLE>
<TABLE>
GRANITE DEVELOPMENT PARTNERS, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Nine Months Ended
October 31,
----------------------------
1996 1995
----------- -------------
<S> <C> <C>
Cash Flow from Operating Activities:
Net loss $(1,399,793) $ (4,129,927)
Adjustment to reconcile net loss to net cash
provided by operating activities:
Amortization 480,210 457,506
Income from joint ventures (485,828) (417,502)
Changes in operating assets and liabilities:
Decrease (increase) in land and
land improvements 5,056,746 (1,264,089)
(Increase) decrease in restricted
cash equivalents (2,978,523) 3,104,801
(Increase) decrease in mortgage
notes receivable (1,488,164) 1,276,887
Increase in interest receivable (1,844,443) (1,656,837)
Increase in development fee receivable - (310,169)
Increase in commission receivable - (76,126)
Increase in administrative fee receivable (85,000) (56,250)
Increase in organization costs - (50,586)
Increase (decrease) in accounts payable 178,924 (57,702)
Increase in accrued fees, partner 845,573 817,159
Increase in accrued interest 960,278 706,917
(Decrease) increase in accrued
real estate taxes (128,181) 295,659
Increase in deposits 927,484 241,000
Increase in deferred income 1,336,835 1,553,465
----------- -------------
Net cash provided by operating activities 1,376,118 434,206
----------- -------------
Cash Flow from Investing Activities:
Investments in and advances to affiliates (1,100,013) (5,121,268)
----------- -------------
Net cash used in investing activities (1,100,013) (5,121,268)
----------- -------------
Cash Flow from Financing Activities:
Proceeds from loan payable - Sunrise 190,000 -
Proceeds from mortgage notes payable 326,170 4,480,000
Third party assumption of mortgage note payable (4,000,000) -
Repayment of mortgage notes payable (345,430) (225,430)
Increase in mortgage procurement cost (17,000) (35,702)
----------- -------------
Net cash (used in) provided by
financing activities (3,846,260) 4,218,868
----------- -------------
Decrease in cash (3,570,155) (468,194)
Cash at beginning of the period 3,635,578 552,074
----------- -------------
Cash at end of the period $ 65,423 $ 83,880
=========== =============
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for:
Interest $ 2,340,553 $ 2,535,767
Real estate taxes $ 353,761 $ 111,902
<FN>
See notes to financial statements.
</FN>
</TABLE>
GRANITE DEVELOPMENT PARTNERS, L.P.
(A Delaware Limited Partnership)
NOTES TO THE FINANCIAL STATEMENTS (Unaudited)
NOTE A - FINANCIAL STATEMENT DISCLOSURES
Certain information and footnote disclosures, which are normally
included in financial statements prepared in accordance with
generally accepted accounting principles, have been condensed or
omitted. It is suggested that these financial statements be read
in conjunction with the financial statements and notes thereto
included in the Partnership's January 31, 1996 Form 10-K Annual
Report.
NOTE B - PARTNERS' SPECIAL UNITS
Until the senior notes payable are paid in full, $9,000,000 of the
partners' special units bear interest at 10.83% and will be paid
pari-passu with interest on the Senior Notes.
Interest earned on the partners' special units amounted to $731,025
for the nine months ended October 31, 1996 and has not been
distributed. As of January 31, 1996, $1,183,178 of the interest
earned on the special units remained undistributed. Total interest
earned of $1,914,203 as of October 31, 1996 will be distributed
pari-passu with the interest on the Senior Notes when funds are
available.
NOTE C - MORTGAGE NOTES PAYABLE
The Partnership entered into mortgage notes payable aggregating
$764,595 and $1,110,025 at October 31, 1996 and January 31, 1996,
respectively, to purchase certain properties. Amounts borrowed of
$597,510 bear interest at a fixed rate of 8% per annum and $167,085
bears interest at two percent (2%) in excess of the prime rate
(8.25% at October 31, 1996). The notes payable are collateralized
by mortgages on the properties. Principal and interest are
generally payable one year after the date of the notes payable.
During the period ended October 31, 1996, the Partnership entered
into a construction loan agreement secured by a promissory note in
an amount not to exceed $1,600,000. The note bears interest at the
prime rate and matures on August 1, 1998. As of October 31, 1996
the Partnership had borrowed $326,170 against this loan for funding
of the Fairfax Meadows development.
The Partnership held a mortgage note payable aggregating
$4,000,000 at January 31, 1996. The note was collateralized by a
mortgage on the 194th Street Property. On October 2, 1996, the
194th Street Property was sold to a third party purchaser. The
purchaser assumed the $4,000,000 note payable and there is no
recourse to the Partnership.
NOTE D - TRANSACTIONS WITH AFFILIATES
FC-Granite and Sunrise are reimbursed for all direct costs of
operations of the Partnership's affairs and development activities.
FC-Granite is paid a monthly administration fee as compensation for
its services in administering the business of the partnership which
is equal to one-sixth of 1% of the book value of the partnership
properties, as defined. Total administration fees accrued for the
nine months ended October 31, 1996 were $290,164. Outstanding fees
of $67,582 as of January 31, 1996, were paid during the nine month
period ended October 31, 1996.
Pursuant to a management agreement, Sunrise is paid a semi-annual
development fee equal to 4% of gross revenues as compensation for
its services in managing the development of the partnership
properties. Total development fees accrued for the nine months
ended October 31, 1996 were $388,602. Outstanding fees of $56,340
as of January 31, 1996, were paid during the nine month period
ended October 31, 1996.
In addition, accrued real estate commissions to FC-Granite were
$340,027 for the nine months ended October 31, 1996. Outstanding
commissions of $49,298 as of January 31, 1996, were paid during the
nine month period ended October 31, 1996.
Pursuant to the Amended and Restated Silver Canyon Partnership
agreement, the Partnership is to receive a monthly administrative
fee in the amount of $5,000 per month. Fees earned as of June 30,
1996 totalled $25,000. Subsequently, the fee has been changed to
$15,000 per month beginning July 1, 1996. Fees earned as of
October 31, 1996 totalled $85,000.
In addition, the Partnership is to receive a commission equal to 1%
of gross sales, as defined in the Amended and Restated Silver
Canyon Partnership agreement, as compensation for its services in
conducting marketing and sales duties and authorization of sales
contracts. Commissions of $75,605 were earned during the nine
month period ended October 31, 1996.
The Partnership has advanced $20,543,211 at October 31, 1996 and
$19,443,198 at January 31, 1996 to its joint ventures. Total
interest earned on the advances amounted to $1,532,477 and
$1,883,707 for the nine months ended October 31, 1996 and for the
year ended January 31, 1996, respectively. Interest of $143,911
was recognized as income for the nine months ended October 31,
1996. For the year ended January 31, 1996, $87,084 was recognized
as income.
During the nine months ended October 31, 1996, Sunrise loaned the
Partnership an additional $190,000 to fund additional development
expenditures. Total funds advanced of $921,768 bear interest at
10% and will be paid back when excess funds are available.
Included in restricted cash equivalents and deposits at October 31,
1996 and January 31, 1996 is $2,386,999 and $1,102,514,
respectively, which represents sales proceeds invested on behalf of
Eaton Estate Partnership in short-term commercial paper. The
funds, together with interest earned, will be returned to the Eaton
Estate Partnership as funding of development expenditures is
needed.
NOTE E - INVESTMENTS IN AND ADVANCES TO JOINT VENTURES
The Partnership has a 33 1/3% interest in Silver Canyon Partnership
and a 30% interest in Eaton Estate Partnership. The Partnership's
investments in Silver Canyon Partnership at October 31, 1996 and
January 31, 1996, were $1,640,977 and $1,301,245, respectively, and
in Eaton Estate Partnership at October 31, 1996 and January 31,
1996, were $2,086,231 and $1,940,135, respectively.
The Partnership has also advanced $20,543,211 at October 31, 1996
and $19,443,198 at January 31, 1996 to the partnerships. The
balance funded by the Partnership to the Silver Canyon Partnership
as of January 31, 1996 was $19,443,198. Pursuant to the Amended
and Restated Partnership agreement for the Silver Canyon
Partnership, the Partnership's original obligation to make loans to
Silver Canyon Partnership was capped at the current level of
funding at January 31, 1996. The agreement also provides that the
Partnership is to provide up to two-thirds of $9,000,000 as
additional loans as funds are required. Funds advanced to Silver
Canyon Partnership as of January 31, 1996, bear interest at ten
percent (10%) and funds advanced subsequent to January 31, 1996
bear interest at the rate of prime plus 1 3/4% (8.25% at October
31, 1996). Funds advanced to Eaton Estate Partnership bear
interest at prime plus three percent (3%).
For the nine months ended October 31, 1996, the Silver Canyon
Partnership generated net income of $1,019,297 primarily
attributable to proceeds from sales of developed property offset by
commissions and administrative fees. Of this amount, $339,732 has
been recorded by the Partnership under the equity method. For the
year ended January 31, 1996, the Silver Canyon Partnership
generated income of $615,625, of which $338,594 has been recorded
by the Partnership under the equity method.
For the nine months ended October 31, 1996, the Eaton Estate
Partnership generated net income of $486,985. Of this amount,
$146,096 has been recorded by the Partnership under the equity
method. For the year ended January 31, 1996, the Eaton Estate
Partnership generated income of $1,462,021 primarily from the
proceeds from sales of developed property offset by real estate
taxes, commissions, interest and other miscellaneous expenses, of
which $438,606 has been recorded by the Partnership under the
equity method.
NOTE F - JOINT VENTURE STATEMENT OF OPERATIONS
<TABLE>
Shown below is the statement of operations for the Silver Canyon
Partnership:
<CAPTION>
Nine Months Ended
October 31,
------------------------
1996 1995
---------- ---------
<S> <C> <C>
REVENUES
Operating income, net $2,024,327 $ 976,254
EXPENSES
Interest expense - 20,835
Fees, partners 130,000 56,250
Commissions 329,312 97,876
Legal and professional 101,020 14,143
Travel and entertainment 35,055 68,567
Operating and other 279,857 168,809
Depreciation and amortization 129,786 67,363
---------- ---------
1,005,030 493,843
---------- ---------
NET INCOME $1,019,297 $ 482,411
========== =========
</TABLE>
The enclosed financial statements have been prepared on a
basis consistent with accounting principles applied in the prior
periods and reflect all adjustments which are, in the opinion of
management, necessary for a fair representation of the results of
the operations for the periods presented. All adjustments for the
nine months ended October 31, 1996 were of a normal recurring
nature. Results of operations for the nine months ended October
31, 1996 are not necessarily indicative of results of operations
which may be expected for the full year.
The following discussion and analysis of Granite Development
Partners, L.P. should be read in conjunction with the audited
financial statements as of January 31, 1996 contained in the Form
10-K Annual Report.
Item 2. Management's Discussion and Analysis of Financial
Condition
Results of Operations
The Partnership recorded sales of $8,681,058 of developed
property for the three month period ended October 31, 1996 versus
sales of $115,200 for the three month period ended October 31,
1995. Sales for the nine month period October 31, 1996 were
$8,748,058 versus sales of $115,200 for the nine month period ended
October 31, 1995. The most significant sale for the period ended
October 31, 1996, was the sale of the oceanfront portion of 194th
Street in Miami Beach, Florida for $7,927,770.
Silver Canyon Partnership, a joint venture of the Partnership
accounted for under the equity method, reported sales of $1,856,626
for the three month and $5,692,126 for the nine month periods ended
October 31, 1996 versus sales of $2,175,025 for the three month and
nine month periods ended October 31, 1995. The increase in sales
for the period is due to the increase in developed land available
for sale to third party builders.
As of October 31, 1996, the following significant sales were
under contract: the remaining 1.5 acre parcel of the 194th Street
property located in Miami Beach, Florida for $601,600; fifteen lots
of the Fairfax Meadows subdivision located in Medina, Ohio for
$340,000; seven lots of the Harmony Glen subdivision located in
Newbury Township, Ohio for $367,000; a thirteen acre cluster parcel
of the West Grove development in Olmsted Falls, Ohio for $902,000
and a ten acre cluster parcel for $660,000; 184 lots located in the
Seven Hills development for $5,469,233; and 82 sublots in the Eaton
Estates subdivision for $3,892,974. None of the contracts are
guaranteed to close.
Interest income totalled $188,443 and $213,079 for the three
months ended October 31, 1996 and 1995, respectively. Interest
income totalled $674,743 and $522,989 for the nine months ended
October 31, 1996 and 1995, respectively. Interest income is
comprised of interest related to receivables from the sale of
developed property on terms, from funds advanced to the joint
ventures and from the investment of proceeds from the sale of land
in short-term commercial paper. Interest income earned on funds
advanced to the Silver Canyon Partnership is being deferred and
recognized as income when the land is sold. The increase in
interest income for the nine month period ended October 31, 1996
versus October 31, 1995, is primarily attributable to the increase
in interest due on receivables from the sale of developed property
and also the recognition of $143,911 of interest due on the Silver
Canyon Partnership loan.
Fees due to partners totalled $499,648 and $1,018,793 for the
three month and nine month periods ended October 31, 1996 versus
$339,966 and $817,159 for the respective periods in fiscal 1995.
The increase in fees is due to the recording of the sale of the
194th Street property in fiscal 1996.
Operating and other expenses totalled $191,574 and $13,770 for
the three months ended October 31, 1996 and 1995, respectively.
The increase for the three month period is attributable to legal
expenses and closing costs associated with the sale of the 194th
Street property. Operating and other expenses for the nine month
periods ended October 31, 1996 and 1995 were comparable.
For the three months ended October 31, 1996, the Partnership
reported net income of $944,429 versus a net loss of $847,417 for
the three months ended October 31, 1995. For the nine months ended
October 31, 1996, the Partnership recorded a net loss of $1,399,793
versus a net loss of $4,129,927 for the nine months ended October
31, 1995. The decrease in net loss for the three month and nine
month periods ended October 31, 1996 versus 1995, is mainly
attributable to the recording of the 194th Street sale in fiscal
1996.
Financial Condition and Liquidity
Net cash provided by operating activities for the nine months
ended October 31, 1996 was $1,376,118 versus net cash provided of
$434,206 for the nine months ended October 31, 1995. The increase
in cash provided by operating activities is mainly the result of
the sale of the 194th Street property.
Net cash used in investing activities was $1,100,013 and
$5,121,268 for the nine months ended October 31, 1996 and 1995,
respectively. The decrease in net cash used is attributable to the
decrease in funds advanced for development expenditures to the
Silver Canyon property.
Net cash used in financing activities for the nine months
ended October 31, 1996 was $3,846,260 versus net cash provided by
financing activities for the nine months ended October 31, 1995 of
$4,218,868. The net cash used during the nine months ended October
31, 1996 was the result of principal payments on mortgage notes of
$345,430, the release of the Partnership from the $4,000,000
mortgage note on the 194th Street property (the mortgage note was
assumed by the purchaser upon closing of the sale) and an increase
in mortgage procurement costs of $17,000 offset by funds advanced
from Sunrise Land Company to the Partnership to fund additional
development expenditures and proceeds of $326,170 received from a
construction loan related to the Fairfax Meadows property . The
net cash provided during the first nine months of fiscal 1995 was
the result of the Partnership obtaining a mortgage note for
$4,000,000 on the 194th Street property and a mortgage note of
$480,000 associated with the purchase of the Fairfax Meadows
property, offset by principal payments on mortgage notes totalling
$225,430 and an increase in procurement costs to obtain the
additional financing.
Short-term external financing was pursued to provide the funds
necessary for the development of the Fairfax Meadows development
located in Medina, Ohio. On August 20, 1996, the Partnership
closed on a construction mortgage loan with a local bank. The loan
is secured by a promissory note in an amount not to exceed
$1,600,000. The note carries interest at the prime rate and
matures on August 1, 1998. The Partnership made its first draw in
the amount of $326,170 during the period ended October 31, 1996.
On December 3, 1993, in connection with the issuance of the
Senior Notes, the Partnership sold pro-rata to the purchasers of
the Senior Notes 36,000 warrants at $27.78 to purchase limited
partnership units. Each warrant represented the right to purchase
one limited partnership unit at an exercise price of $83.33. The
warrants were exercisable at any time prior to December 3, 1996.
On December 3, 1996, all 36,000 warrants were exercised. Proceeds
of $2,999,880 received by the Partnership from the exercise will be
used to fund development and other obligations of the Partnership
which include fees due to FC-Granite, Inc., the sole general partner,
and Sunrise Land Company, the original limited partner.
PART II. OTHER INFORMATION
Item 6. Exhibits and Report on Form 8-K
(a) Exhibits - none
(b) No reports on Form 8-K have been filed by the Registrant
during the quarter ended October 31, 1996.
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.
Granite Development Partners, L.P.
----------------------------------
(Registrant)
DATE: 12/12/96 /s/ Robert F. Monchein
---------- ----------------------------------
Robert F. Monchein
President
FC-Granite, Inc., the general partner
of Granite Development Partners, L.P.
DATE: 12/12/96 /s/ Mark A. Ternes
---------- ----------------------------------
Mark A. Ternes
Controller
FC-Granite, Inc., the general partner
of Granite Development Partners, L.P.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-31-1997
<PERIOD-START> FEB-01-1996
<PERIOD-END> OCT-31-1996
<CASH> 65423
<SECURITIES> 0
<RECEIVABLES> 5901253
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 7222078
<DEPRECIATION> 0
<TOTAL-ASSETS> 48659246
<CURRENT-LIABILITIES> 0
<BONDS> 37090765
0
0
<COMMON> 0
<OTHER-SE> (1021858)
<TOTAL-LIABILITY-AND-EQUITY> 48659246
<SALES> 0
<TOTAL-REVENUES> 2566087
<CGS> 0
<TOTAL-COSTS> 2040197
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3300831
<INCOME-PRETAX> (1399793)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1399793)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1399793)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
