424(b)(3)
No. 33-90998-01
CNL INCOME FUND XVIII, LTD.
This Supplement is part of, and should be read in conjunction with, the
Prospectus dated May 9, 1997 and the Prospectus Supplement dated August 6, 1997.
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 and as to the number and types of Properties acquired by CNL
XVIII is presented as of August 21, 1997, and all references to commitments or
Property acquisitions should be read in that context. Proposed properties for
which CNL XVIII receives initial commitments, as well as property acquisitions
that occur after August 21, 1997, will be reported in a subsequent Supplement.
THE OFFERING
SUBSCRIPTION PROCEDURES
As of August 21, 1997, CNL XVIII had received total subscription
proceeds of $25,106,127 (2,510,613 Units) from 1,222 Limited Partners. As of
August 21, 1997, the proceeds had been invested or committed for investment in
19 Properties and to pay Acquisition Fees and miscellaneous Acquisition
Expenses. As of August 21, 1997, CNL XVIII had incurred $1,129,776 in
Acquisition Fees to an Affiliate of the General Partners.
BUSINESS
PENDING INVESTMENTS
As of August 21, 1997, CNL XVIII had an initial commitment to acquire
one property consisting of land and building. The initial commitment for the
Golden Corral property in Destin, Florida, was entered into on August 19, 1997.
The acquisition of this property 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 this property will be
acquired by CNL XVIII. If acquired, the lease of this property is expected to be
entered into on substantially the same terms described in the Prospectus in the
section entitled "Business - Description of Leases."
Set forth below are summarized terms expected to apply to the lease for
this property. More detailed information relating to this property and its
related lease will be provided at such time, if any, as the property is
acquired.
AUGUST 26, 1997 PROSPECTUS DATED MAY 9, 1997
<PAGE>
<TABLE>
<CAPTION>
Lease Term and
Property Renewal Options Option Minimum Annual Rent Percentage Rent
- -------- --------------- ------ ------------------- ---------------
<S> <C>
Golden Corral 15 years; four 10.75% of Total for each lease year, 5% of the during the first through
Destin, FL five-year renewal Cost (1) amount by which annual years and seventh lease
Restaurant to be options gross sales exceed a to be the tenth through fifteenth
constructed determined breakpoint lease years only
</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.
