424(b)(3)
No. 33-90998-01
CNL INCOME FUND XVII, LTD.
AND
CNL INCOME FUND XVIII, LTD.
This Supplement is part of, and should be read in conjunction with, the
Prospectus dated August 11, 1995. This Supplement replaces the Supplement
dated October 16, 1996. Capitalized terms used in this Supplement have the
same meaning as in the Prospectus unless otherwise stated herein.
All subscriptions are for the purchase of Units of CNL Income Fund
XVIII, Ltd. ("CNL XVIII"). Offers are no longer being made nor are the
General Partners accepting subscriptions for CNL XVII. THE ACQUISITION OF
UNITS OF ONE PARTNERSHIP WILL NOT ENTITLE THE INVESTOR TO ANY OWNERSHIP
INTEREST IN THE OTHER PARTNERSHIP OR ITS PROPERTIES.
Information as to proposed properties for which CNL XVIII has received
initial commitments is presented as of December 6, 1996, and all references to
commitments should be read in that context. Proposed properties for which CNL
XVIII receives initial commitments, as well as property acquisitions that
occur after December 6, 1996, will be reported in a subsequent Supplement.
THE OFFERING
SUBSCRIPTION PROCEDURES
As of October 11, 1996, CNL XVIII had received aggregate subscription
proceeds of $1,733,131, which exceeded the minimum offering amount of
$1,500,000, and $1,517,431 of the funds (which excluded all funds received
from New York and Pennsylvania investors) were released from escrow. As of
December 17, 1996, CNL XVIII had received total subscription proceeds of
$7,143,135 (714,314 Units) from 338 Limited Partners.
BUSINESS
PROPERTY ACQUISITIONS
As of December 17, 1996, CNL XVIII had acquired no Properties. As of
December 17, 1996, CNL XVIII had initial commitments to acquire four
properties. The initial commitments for these properties were entered into on
December 17, 1996. The acquisition of each of these properties is subject to
the fulfillment of certain conditions, including, but not limited to, a
satisfactory environmental survey and property appraisal. There can be no
assurance that any or all of the conditions will be satisfied or, if
satisfied, that one or more of these properties will be acquired by CNL XVIII.
If acquired, the leases of all four of these properties are expected to be
entered into on substantially the same terms described in the Prospectus in
the section entitled "Business - Description of Leases," except as described
below.
Set forth below are summarized terms expected to apply to the leases for
each of the properties. More detailed information relating to a property and
its related lease will be provided at such time, if any, as the property is
acquired.
December 20, 1996 Prospectus Dated August 11, 1995
<TABLE>
<CAPTION>
Lease Term and
Property Renewal Options Minimum Annual Rent Percentage Rent Option to Purchase
- -------- --------------- ------------------- --------------- ------------------
<S> <C> <C> <C> <C>
Boston Market 15 years; five 10.38% of CNL for each lease year at any time after
Charlotte, NC five-year renewal XVIII's total cost after the fifth the fifth lease
Existing restaurant options to purchase the lease year, (i) 5% year
property; increases of annual gross
by 10% after the sales minus (ii)
fifth lease year the minimum annual
and after every rent for such lease
five years year
thereafter during
the lease term
Boston Market 15 years; five 10% of CNL XVIII's for each lease year at any time after
Raleigh, NC five-year renewal total cost to after the fifth the fifth lease
Existing restaurant options purchase the lease year, (i) 5% year
property; increases of annual gross
to 10.81% of total sales minus (ii)
cost during the the minimum annual
third through fifth rent for such lease
lease years, 11.55% year
of total cost
during the sixth
through tenth lease
years, and 12.71%
of total cost
during the eleventh
through fifteenth
lease years
Burger King 20 years; four 10.25% of CNL for each lease during the eighth,
Kinston, NC five-year renewal XVIII's total cost year, (i) 6% of ninth, tenth,
Existing restaurant options to purchase the annual gross sales eleventh and
property; increases minus (ii) the twelfth lease years
by 5% after the minimum annual rent only
fifth lease year for such lease year
and by 10% after
the tenth lease
year and after
every five years
thereafter during
the lease term
Golden Corral 15 years; four 10.75% of Total for each lease during the first
Houston, TX five-year renewal Cost (1) year, 5% of the through seventh
Restaurant to be options amount by which lease years and the
constructed annual gross sales tenth through
exceed a to be fifteenth lease
determined years only
breakpoint<PAGE>
</TABLE>
FOOTNOTES:
(1) The "Total Cost" is equal to the sum of (i) the purchase price of the
property, (ii) closing costs and (iii) actual development costs incurred
under the development agreement.
