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 April 30, 1997
----------------
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 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>
April 30, January 31,
1997 1997
----------- -----------
(Unaudited) (Restated)
<S> <C> <C>
ASSETS
- ------
LAND $ 4,218,715 $ 4,472,219
LAND IMPROVEMENTS 2,481,776 2,476,446
----------- -----------
6,700,491 6,948,665
RESTRICTED CASH EQUIVALENTS 5,297,146 4,602,891
MORTGAGE NOTES RECEIVABLE 6,139,132 6,323,446
INVESTMENTS IN AND ADVANCES TO
JOINT VENTURES 26,601,740 25,866,537
OTHER ASSETS
Mortgage procurement costs, net of
accumulated amortization of
$1,561,018 at April 30, 1997 and
$1,446,575 at January 31, 1997 719,583 826,126
Organization costs, net of
accumulated amortization of
$515,030 at April 30, 1997 and
$449,697 at January 31, 1997 233,087 298,420
Cash 237,751 286,988
Interest receivable 5,760,471 5,207,019
Other 80,500 55,000
Commission receivable - 17,392
Administrative fee receivable 75,000 60,000
----------- -----------
7,106,392 6,750,945
----------- -----------
$51,844,901 $50,492,484
=========== ===========
LIABILITIES,
PARTNERS'SPECIAL UNITS
& PARTNERS' DEFICIT
- ----------------------
SENIOR NOTES PAYABLE $36,000,000 $36,000,000
MORTGAGE NOTES PAYABLE 785,972 910,472
LOAN PAYABLE - SUNRISE 921,768 921,768
OTHER LIABILITIES
Accounts payable 170,643 48,632
Accrued fees, partners 1,078,721 935,796
Accrued interest 2,009,604 1,009,139
Accrued real estate taxes 154,836 134,913
Deposits 3,605,298 3,199,100
Deferred income 5,111,226 4,656,074
----------- -----------
12,130,328 9,983,654
PARTNERS' EQUITY (DEFICIT)
Partners' special units 9,000,000 9,000,000
Partners' deficit (6,993,167) (6,323,410)
----------- -----------
2,006,833 2,676,590
----------- -----------
$51,844,901 $50,492,484
=========== ===========
<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
April 30,
---------------------------
1997 1996
----------- -----------
(Restated)
<S> <C> <C>
REVENUES
Sales of developed property $ 791,497 $ -
Cost of sales (523,898) -
----------- -----------
267,599 -
Interest 231,873 109,601
Other 55,386 15,543
----------- -----------
554,858 125,144
----------- -----------
EXPENSES
Interest 1,009,832 1,114,441
Fees, partners 142,925 201,630
Real estate taxes 46,337 97,503
Operating and other 23,135 65,934
Amortization 179,776 155,461
----------- -----------
1,402,005 1,634,969
----------- -----------
(847,147) (1,509,825)
Income (loss) from joint
ventures 177,390 (12,237)
----------- -----------
NET LOSS $ (669,757) $(1,522,062)
=========== ===========
<FN>
See notes to financial statements.
</FN>
</TABLE>
<TABLE>
GRANITE DEVELOPMENT PARTNERS, L.P.
(A Delaware Limited Partnership)
STATEMENT OF CHANGES IN PARTNERS' DEFICIT
<CAPTION>
Sunrise FC-Granite, Limited
Land Co. Inc. Partners Total
--------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Balance at January 31, 1994 $ 100 $ (4,350,570) $ - $(4,350,470)
Distribution of interest on
special units - (963,870) - (963,870)
Net loss (restated) (39,032) (3,864,124) - (3,903,156)
-------- ----------- ---------- -----------
Balance at January 31, 1995
(restated) (38,932) (9,178,564) - (9,217,496)
Net loss (restated) (1,585) (156,902) - (158,487)
-------- ------------ ---------- ------------
Balance at January 31, 1996
(restated) (40,517) (9,335,466) - (9,375,983)
Capital contribution -
exercise of warrants - - 3,999,960 3,999,960
Withdrawal of original
limited partner 40,517 (40,517) - -
Distribution of interest
on special units - (1,914,202) - (1,914,202)
Net income (restated) - 966,815 - 966,815
-------- ------------ ---------- ------------
Balance at January 31, 1997
(restated) - (10,323,370) 3,999,960 (6,323,410)
Net loss for the three months
ended April 30, 1997 - (167,439) (502,318) (669,757)
-------- ------------ ---------- ------------
Balance at April 30, 1997
(unaudited) $ - $(10,490,809) $3,497,642 $ (6,993,167)
======== ============ ========== ============
<FN>
See notes to financial statements.
</FN>
</TABLE>
<TABLE>
GRANITE DEVELOPMENT PARTNERS, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Three Months Ended
April 30,
--------------------------
1997 1996
----------- ------------
(Restated)
<S> <C> <C>
Cash Flow from Operating Activities:
Net loss $ (669,757) $ (1,522,062)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Amortization 179,776 155,461
(Income) loss from joint ventures (177,390) 12,237
Changes in operating assets and liabilities:
Decrease (increase)in land and
land improvements 248,174 (78,548)
Increase in restricted cash equivalents (694,255) (2,642,547)
Decrease in mortgage notes receivable 184,314 341,938
Increase in interest receivable (553,452) (505,188)
Increase in other assets (25,500) -
Decrease in commission receivable 17,392 -
Increase in administrative fee receivable (15,000) (15,000)
Increase (decrease) in accounts payable 122,011 (75,767)
Increase in accrued fees, partner 142,925 28,410
Increase in accrued interest 1,000,465 1,000,057
Increase (decrease) in accrued
real estate taxes 19,923 (99,657)
Increase in deposits 406,198 26,372
Increase in deferred income 455,152 494,178
----------- ------------
Net cash provided by (used in)
operating activities 640,976 (2,880,116)
Cash Flow from Investing Activities:
Investments in and advances to affiliates (557,813) (748,462)
----------- ------------
Net cash used in investing activities (557,813) (748,462)
----------- ------------
Cash Flow from Financing Activities:
Proceeds from loan payable - Sunrise - 190,000
Repayment of mortgage notes payable (124,500) (100,000)
Increase in mortgage procurement costs (7,900) -
----------- ------------
Net cash (used in) provided by
financing activities (132,400) 90,000
----------- ------------
Decrease in cash (49,237) (3,538,578)
Cash at beginning of the period 286,988 3,635,578
----------- ------------
Cash at end of the period $ 237,751 $ 97,000
=========== ============
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for:
Interest $ 9,367 $ 114,384
Real estate taxes $ 26,414 $ 197,160
<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, 1997 Annual Report on
Form 10K.
NOTE B - RESTATEMENT
The Partnership has restated its previously issued financial statements
for the years ended January 31, 1997, 1996 and 1995 and the three months
ended April 30, 1996 to correct an error in accounting for interest income
recorded on certain advances. The Partnership recorded interest income
on advances for the period from February 1, 1994 to January 31, 1997.
The previously issued financial statements have been restated to reverse
the interest income recorded on certain advances. As a result of the
restatement, interest receivable and interest income decreased and net
loss increased by $367,959 for the year ended January 31, 1995, interest
receivable, interest income and net income decreased by $385,959
and $294,407 for the years ended January 31, 1996 and 1997, respectively.
For the three months ended April 30. 1996, interest receivable and
interest income decreased and net loss increased by $73,602 for the
restatement.
NOTE C - 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 $240,967
for the three months ended April 30, 1997 and has not been
distributed. As of January 31, 1997, $243,676 of the interest
earned on the special units remained undistributed. Total interest
earned of $484,643 as of April 30, 1997 will be distributed pari-
passu with the interest on the Senior Notes when funds are
available.
NOTE D - MORTGAGE NOTES PAYABLE
The Partnership entered into mortgage notes payable aggregating
$567,510 at April 30, 1997 and $597,510 at January 31, 1997,
respectively, to purchase certain properties. Amounts borrowed of
$567,510 bear interest at a fixed rate of 8% per annum. 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 year ended January 31, 1997, 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 (8.50% at April 30, 1997) and matures on August 1, 1998.
As of April 30, 1997, the outstanding balance related to this loan
was $218,462. The loan was established for the funding of the
Fairfax Meadows development.
The Partnership held a mortgage note payable aggregating $4,000,000
during the year ended 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 E - TRANSACTIONS WITH AFFILIATES
The sole general partner is FC-Granite, Inc., an Ohio corporation
("FC-Granite"). FC-Granite is a wholly-owned subsidiary of Sunrise
Land Company ("Sunrise"), the land division subsidiary of Forest
City Enterprises, Inc.
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 administrative 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 administrative fees accrued for the
three months ended April 30, 1997 and 1996, were $65,675 and
$179,967, respectively. Fees outstanding as of January 31, 1997,
were $212,040. Total outstanding fees of $277,715 as of April 30,
1997, will be paid when funds are available.
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 three months
ended April 30, 1997 and 1996 were $41,200 and $11,554,
respectively. Fees outstanding as of January 31, 1997, were
$386,003. Total outstanding fees of $427,203 as of April 30, 1997,
will be paid when funds are available.
In addition, accrued real estate commissions due to FC-Granite were
$36,050 and $10,109 for the three months ended April 30, 1997 and
1996, respectively. Commissions outstanding as of January 31,
1997, were $337,753. Total outstanding commissions of $373,803 as
of April 30, 1997, will be paid when funds are available.
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 during the
three months ended April 30, 1997 and 1996, were $15,000. Fees
earned for the year ended January 31, 1997, were $60,000. Total
fees due the Partnership as of April 30, 1997 are $75,000.
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. The Partnership earned $24,142 during the three months
ended April 30, 1997. No commissions were earned during the three
month period ended April 30, 1996.
The Partnership has advanced $21,268,244 at April 30, 1997 and
$20,710,431 at January 31, 1997 to its joint ventures. Total
interest earned on the advances amounted to $525,378 and $494,178
for the three months ended April 30, 1997 and 1996, respectively.
Interest income is deferred by the Partnership until the interest
capitalized on the joint ventures is recognized as cost of sales by
the joint ventures. Interest recognized as income for the three
month period ended April 30, 1997, was $54,449. No interest was
recognized as income for the three months ended April 30, 1996.
During the three months ended April 30, 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.
Interest accrued on the loan was $22,787 and $22,780 for the three
month periods ended April 30, 1997 and 1996, respectively. Total
outstanding interest due Sunrise as of April 30, 1997, is $179,066.
Included in restricted cash equivalents and deposits at April 30,
1997 and January 31, 1997 is $3,597,998 and $3,124,950,
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 F - 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 April 30, 1997 and
January 31, 1997, were $3,056,668 and $2,929,217, respectively, and
in Eaton Estate Partnership at April 30, 1997 and January 31, 1997,
were $2,274,846 and $2,332,049, respectively.
The Partnership has also advanced $21,268,244 at April 30, 1997 and
$20,710,431 at January 31, 1997 to the partnerships. Pursuant to
the Amended and Restated Partnership Agreement for Silver Canyon
Partnership, 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% (8.50% at April 30, 1997). Funds advanced to
Eaton Estate Partnership bear interest at prime plus three percent
(3%).
For the three months ended April 30, 1997, the Silver Canyon
Partnership generated net income of $196,078. Of this amount,
$127,451 has been recorded by the Partnership under the equity
method.
For the three months ended April 30, 1997, the Eaton Estate
Partnership generated net income of $166,465. Of this amount,
$49,939 has been recorded by the Partnership under the equity
method.
NOTE G - JOINT VENTURE STATEMENT OF OPERATIONS
<TABLE>
Shown below is the statement of operations for the Silver Canyon
Partnership:
<CAPTION>
Three Months Ended
April 30,
--------------------------
1997 1996
----------- -----------
<S> <C> <C>
REVENUES
Operating income $ 555,484 $ 41,712
EXPENSES
Fees, partners 30,000 30,000
Commissions 108,420 -
Legal and professional 4,900 14,773
Travel and entertainment 16,306 7,277
Operating and other 148,333 107,684
Depreciation and amortization 51,447 36,087
----------- -----------
Subtotal 359,406 195,821
----------- -----------
NET INCOME (LOSS) $ 196,078 $ (154,109)
=========== ===========
</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
three months ended April 30, 1997 were of a normal recurring
nature. Results of operations for the three months ended April 30,
1997 are not necessarily indicative of results of operations which
may be expected for the full year.
Item 2. Management's Discussion and Analysis of Financial
Condition
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, 1997 contained in the Annual
Report on Form 10-K.
Results of Operations
The Partnership recorded sales of $791,497 for the three month
period ended April 30, 1997 versus no sales for the three month
period ended April 30, 1996. The Partnership sold ten lots located
in the Harmony Glen subdivision in Newbury Township, Ohio for a
total of $507,900. The Eaton Estate Partnership, a joint venture
of the Partnership accounted for under the equity method, reported
sales of $795,000 and $962,798 for the three months ended April 30,
1997 and 1996, respectively. The Silver Canyon Partnership
reported sales of $1,445,938 for the three months ended April 30,
1997 versus no sales for the three months ended April 30, 1996.
The development of the Seven Hills project in Nevada has progressed
significantly within the past year and the Partnership expects a
corresponding increase in sales.
As of April 30, 1997, the following significant sales were
under contract: 5.8 acres of the Drake Estates development in
Strongsville, Ohio for $348,000; fifteen sublots of the Fairfax
Meadows subdivision located in Medina, Ohio for $647,300; three
lots of the Harmony Glen subdivision located in Newbury Township,
Ohio for $180,000; and 289 lots of the Silver Canyon development in
Henderson, Nevada for $8,522,310. None of the contracts are
guaranteed to close.
Interest income totalled $231,873 for the three months ended
April 30, 1997 versus $109,600 for the three months ended April 30,
1996. Interest income is comprised of interest earned on notes
receivable from the sales of developed property, from funds
advanced to the joint ventures and from the investment of proceeds
from sales in short-term commercial paper. Interest income earned
on funds advanced to the Silver Canyon Partnership is being
deferred. The increase in interest income is mainly due to a
higher average mortgage note receivable balance and the recognition
of $54,449 of deferred interest income related to the Silver Canyon
advance during the three month period ended April 30, 1997. No
deferred interest income was recognized during the three month
period ended April 30, 1996.
For the three months ended April 30, 1997 and 1996, the
Partnership reported net losses of $669,757 and $1,522,062,
respectively. The decrease in net loss is due to the recording of
sales of $791,497 during the three month period ended April 30,
1997 versus no sales for the three month period ended April 30,
1996. The decrease in net loss is also the result of a decrease in
expenses. The decrease in interest expense is a result of the
$4,000,000 loan related to the 194th Street property being assumed
by the purchaser of the property which occurred in October 1996.
The decrease in real estate taxes is also a result of the sale of
the 194th Street property during the fiscal year 1996.
Financial Condition and Liquidity
Net cash provided by operating activities was $640,976 for
the three months ended April 30, 1997 versus net cash used of
$2,880,116 for the three months ended April 30, 1996. The increase
in net cash provided by operating activities is primarily the
result of a decrease in net loss of $852,305 for the three month
period ended April 30, 1997 as compared to the three month period
ended April 30, 1996. Also contributing to an increase in cash
generated from operating activities was the decrease in funds
transferred from operating cash to cash restricted for development
purposes. During the three month period ended April 30, 1996, the
Partnership transferred excess sales proceeds received during
fiscal 1995 to investments in short-term commercial paper. The
restricted cash, which is reserved for development purposes, will
be used to fund development expenses of the Partnership and the
joint ventures as needed. The decrease in land and land
improvements resulted from the sales of developed property in the
three month period ended April 30, 1997.
Net cash used in investing activities was $557,813 and
$748,462 for the three months ended April 30, 1997 and 1996,
respectively. The increase in funds advanced to the Silver Canyon
Partnership for the three months ended April 30, 1997, is due to a
shortfall of cash available from sales proceeds from the joint
venture. While a substantial amount of the funds necessary to pay
improvements for the Silver Canyon Partnership is obtained through
financing from the underground improvement loan with General Motors
Acceptance Corporation - Residential Funding Corporation (GMAC),
any shortfall of funds necessary to pay improvements is partially
funded by the Partnership.
Net cash used in financing activities was $132,400 for the
three month period ended April 30, 1997 versus net cash provided of
$90,000 for the three month period ended April 30, 1996. The net
cash used during the three month period ended April 30, 1997, was
the result of two principal payments on mortgage notes payable for
a total of $124,500 and an increase in mortgage procurement costs
associated with the appraisal of the Solon Estates property located
in Solon, Ohio, by a lending institution in anticipation of
financing the project. The net cash provided as of April 30, 1996
was the result of additional funds advanced from Sunrise Land
Company to the Partnership to fund additional development
expenditures offset by the scheduled principal payment of $100,000
on a pre-existing mortgage note.
The Partnership had adequate funds available to make the first
semi-annual payment of interest on the Senior Notes on May 15,
1997. Short-term external financing is being pursued to provide
the funds necessary for the development of the Solon Estates
project located in Solon, Ohio.
Information Relating to Forward-Looking Statements
This Quarterly Report, together with other statements and
information publicly disseminated by the Partnership, contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements
reflect management's current views with respect to financial
results related to future events and are based on assumptions and
expectations which may not be realized and are inherently subject
to risks and uncertainties, many of which cannot be predicted with
accuracy and some of which might not even be anticipated. Future
events and actual results, financial or otherwise, may differ from
the results discussed in the forward-looking statements. Risks and
other factors that might cause differences, some of which could be
material, include, but are not limited to, the effect of economic
and market conditions on a nation-wide basis as well as regionally
in areas where the Partnership has a geographic concentration of
land; failure to consummate financing arrangements; development
risks, including lack of satisfactory financing, construction and
cost overruns; the level and volatility of interest rates; the rate
of revenue increases versus expenses increases; as well as other
risks listed from time to time in the Partnership's reports filed
with the Securities and Exchange Commission. The Partnership has
no obligation to revise or update any forward-looking statements as
a result of future events or new information. Readers are
cautioned not to place undue reliance on such forward-looking
statements.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - none.
(b) No reports on Form 8-K have been filed by the Registrant
during the quarter ended April 30, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
Granite Development Partners, L.P.
----------------------------------
(Registrant)
DATE: 6/16/97 /s/ Robert F. Monchein
------------ -----------------------
Robert F. Monchein
President
FC-Granite, Inc., the general partner
of Granite Development Partners, L.P.
DATE: 6/16/97 /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> 3-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-START> FEB-01-1997
<PERIOD-END> APR-30-1997
<CASH> 237751
<SECURITIES> 0
<RECEIVABLES> 6139132
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 6700491
<DEPRECIATION> 0
<TOTAL-ASSETS> 51844901
<CURRENT-LIABILITIES> 0
<BONDS> 36785972
0
0
<COMMON> 0
<OTHER-SE> 2006833
<TOTAL-LIABILITY-AND-EQUITY> 51844901
<SALES> 0
<TOTAL-REVENUES> 267599
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 392173
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1009832
<INCOME-PRETAX> (669757)
<INCOME-TAX> 0
<INCOME-CONTINUING> (669757)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (669757)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
