-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NautvSbBaYIDzPeDWrZf8+8a70Xitm74BINmxZR9YxAOX5eUUWAxk823R/xBKH77 LAKH+uyblNO+0Ez5BN/+sQ== 0000736908-08-000005.txt : 20080515 0000736908-08-000005.hdr.sgml : 20080515 20080515170246 ACCESSION NUMBER: 0000736908-08-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20080331 FILED AS OF DATE: 20080515 DATE AS OF CHANGE: 20080515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRAUVIN REAL ESTATE FUND LP 4 CENTRAL INDEX KEY: 0000736908 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 363304339 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-13402 FILM NUMBER: 08838995 BUSINESS ADDRESS: STREET 1: BRAUVIN REAL ESTATE FUNDS STREET 2: 30 N LASALLE ST STE 3100 CITY: CHICAGO STATE: IL ZIP: 60602 BUSINESS PHONE: 3124430922 MAIL ADDRESS: STREET 1: BRAUVIN REAL ESTATE FUNDS STREET 2: 30 N LASALLE ST STE 3100 CITY: CHICAGO STATE: IL ZIP: 60602 10QSB 1 f4.txt BRAUVIN REAL ESTATE FUND LP 4 10-QSB UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2008 or [ ]Transition Report Pursuant to Section 13 or 15(d) of the Se curities Exchange Act of 1934 For the transition period from to Commission File Number 0-13402 Brauvin Real Estate Fund L.P. 4 (Name of small business issuer as specified in its charter) Delaware 36-3304339 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 205 North Michigan Avenue, Chicago, Illinois 60601 (Address of principal executive offices) (Zip Code) (312)759-7660 (Issuer's telephone number) Not applicable (Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the issuer 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 whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes No X. Transitional Small Business Disclosure Format (Check one): Yes ____ No __X___. BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) INDEX PART I Page Item 1. Financial Statements 3 Consolidated Statement of Net Assets in Liquidation as of March 31, 2008(Liquidation Basis) 4 Consolidated Statement of Changes in Net Assets in Liquidation for the period January 1, 2008 to March 31, 2008 (Liquidation Basis) 5 Consolidated Statement of Changes in Net Assets in Liquidation for the period January 1, 2007 to March 31, 2007 (Liquidation Basis) 6 Consolidated Statements of Operations for the three months ended March 31, 2008 and 2007 (Liquidation Basis) 7 Notes to Consolidated Financial Statements 8 Item 2. Management's Discussion and Analysis or Plan of Operation 14 Item 3. Controls and Procedures 18 PART II Item 1. Legal Proceedings 20 Item 2. Changes in Securities 20 Item 3. Defaults Upon Senior Securities 20 Item 4. Submission of Matters to a Vote of Security Holders 20 Item 5. Other Information 20 Item 6. Exhibits, and Reports on Form 8-K 20 Signatures 21 BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) PART I - FINANCIAL INFORMATION ITEM 1. Financial Statements The following Consolidated Statement of Net Assets in Liquidation as of March 31, 2008 (Liquidation Basis), Consolidated Statement of Changes in Net Assets in Liquidation for the period January 1, 2008 to March 31, 2008 (Liquidation Basis), Consolidated Statement of Changes in Net Assets in Liquidation for the period January 1, 2007 to March 31, 2007 (Liquidation Basis) and Consolidated Statements of Operations for the three months ended March 31, 2008 and 2007 (Liquidation Basis) for Brauvin Real Estate Fund L.P. 4 (the "Partnership") are unaudited but reflect, in the opinion of the management, all adjustments necessary to present fairly the information required. All such adjustments are of a normal recurring nature. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Partnership's 2007 Annual Report on Form 10-KSB. BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) CONSOLIDATED STATEMENT OF NET ASSETS IN LIQUIDATION AS OF MARCH 31, 2008 (LIQUIDATION BASIS) (Unaudited) ASSETS Cash and cash equivalents $1,832,932 Tenant receivables 31,750 Escrow deposits 1,098 ---------- Total Assets 1,865,780 ---------- LIABILITIES Accounts payable and accrued expenses 140,330 Reserve for estimated costs during the period of liquidation (Note 1) 230,594 Due to affiliates 797 ---------- Total Liabilities 371,721 ---------- Net Assets in Liquidation $1,494,059 ========== See accompanying notes to consolidated financial statements. BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS IN LIQUIDATION FOR THE PERIOD JANUARY 1, 2008 TO MARCH 31, 2008 (LIQUIDATION BASIS) (Unaudited) Net assets in liquidation at January 1, 2008 $2,478,667 Excess expenses over revenue from operations (14,083) Distributions (1,000,000) Adjustment to estimated liquidation costs 29,475 ---------- Net assets in liquidation at March 31, 2008 $1,494,059 ========== Net assets available to: General Partners $ -- ========== Limited Partners $1,494,059 ========== See accompanying notes to consolidated financial statements. BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS IN LIQUIDATION FOR THE PERIOD JANUARY 1, 2007 TO MARCH 31, 2007 (LIQUIDATION BASIS) (Unaudited) Net assets in liquidation at January 1, 2007 $1,970,445 Excess revenue over expenses from operations 11,150 Adjustment to estimated liquidation costs 29,475 ---------- Net assets in liquidation at March 31, 2007 $2,011,070 ========== Net assets available to General Partners $ -- ========== Limited Partners $2,011,070 ========== See accompanying notes to consolidated financial statements. BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2008 and 2007 (LIQUIDATION BASIS) (Unaudited) 2008 2007 -------- ------- INCOME Rental $ -- $176,676 Interest 13,184 2,105 Other, primarily tenant expense reimbursements 11,787 36,581 --------- -------- Total income 24,971 215,362 --------- -------- EXPENSES Interest -- 84,249 Real estate taxes -- 29,552 Repairs and maintenance -- 5,996 Management fees (Note 4) 924 13,684 Other property operating -- 9,856 General and administrative 38,130 60,875 --------- -------- Total expenses 39,054 204,212 --------- -------- Excess (expenses) over revenue from operations $(14,083) $ 11,150 ======== ======== See accompanying notes to consolidated financial statements. BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) (1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization The financial statements consolidate the accounts of Brauvin Real Estate Fund L.P. 4 and its wholly owned subsidiary (the "Partnership"). The Partnership is a Delaware limited partnership organized for the purpose of acquiring, operating, holding for investment and disposing of existing office buildings, medical office centers, shopping centers and industrial and retail commercial buildings of a general purpose nature, all in metropolitan areas. The General Partners of the Partnership are Brauvin Ventures, Inc. and Jerome J. Brault. The Partnership is managed by an affiliate of the General Partners. Properties acquired by the Partnership either directly or indirectly through affiliated joint ventures were: (a) Fortune Professional Building (which was sold February 2003); (b) Raleigh Springs Marketplace(which was sold in December 2007); (c) Strawberry Fields Shopping Center (which was sold in July 2001 and terminated in 2002) and (d) Sabal Palm Shopping Center (which was sold in December 2005). 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 revenue and expenses during the reporting period. Estimates significant to the financial statements include the reserve for estimated costs during the period of liquidation. Actual results could differ from those estimates. Basis of Presentation As a result of the July 12, 1999 authorization by a majority of the Limited Partners to sell the Partnership's properties, the Partnership began the liquidation process and, in accordance with generally accepted accounting principles, the Partnership's financial statements for periods subsequent to July 12, 1999 have been prepared on the liquidation basis of accounting. Accordingly, the carrying values of assets are presented at their net realizable amounts and liabilities are presented at estimated settlement amounts, including estimated costs associated with carrying out the liquidation. Preparation of the financial statements on a liquidation basis requires significant assumptions by management, including the estimate of liquidation costs and the resolution of any contingent liabilities. There may be differences between the assumptions and the actual results because events and circumstances frequently do not occur as expected. Those differences, if any, could result in a change in the net assets recorded in the statement of net assets in liquidation as of March 31, 2008. Estimated Liquidation Costs Estimated costs expected to be incurred during the remaining liquidation period through June 30, 2008 include legal fees and other administrative items. Actual results could differ materially from these estimates. On a regular basis, an evaluation is made of the assumptions, judgments and estimates, and changes are recorded, as appropriate. Accounting Method The accompanying financial statements have been prepared in accordance with the liquidation basis of accounting. Tenant Receivables Tenant receivables are comprised of (a) billed but uncollected amounts due for monthly rents and other charges and (b) estimated unbilled amounts due for tenant reimbursement of common area maintenance charges and property taxes. Receivables are recorded at estimated net realizable value. An allowance for doubtful accounts of $14,167 is based on specific identification of uncollectible accounts and the Partnership's historical collection experience. 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 financial statements. Principles of Consolidation The Partnership has one affiliate, Brauvin Raleigh, L.L.C. which is owned 100% by the Partnership. The accounts of the Partnership have been consolidated with its wholly-owned subsidiary in the accompanying financial statements. All significant intercompany balances and transactions have been eliminated upon consolidation. 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. The Partnership maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Partnership has not experienced any losses in such accounts. Management believes the Partnership is not exposed to any significant credit risk related to cash or cash equivalents. Estimated Fair Value of Financial Instruments In connection with the adoption of the liquidation basis of accounting, assets were adjusted to net realizable value, and liabilities were adjusted to estimated settlement amounts. (2) PARTNERSHIP AGREEMENT The Partnership Agreement (the "Agreement") provides that 99% of the net profits and losses from operations of the Partnership for each fiscal year shall be allocated to the Limited Partners and 1% of net profits and losses from operations shall be allocated to the General Partners. The net profit of the Partnership from the sale or other disposition of a Partnership property shall be allocated as follows: first, there shall be allocated to the General Partners the greater of: (i) 1% of such net profits; or (ii) the amount distributable to the General Partners as Net Sale Proceeds from such sale or other disposition in accordance with paragraph 2, section K of the Agreement; and second, all remaining profits shall be allocated to the Limited Partners. The net loss of the Partnership from any sale or other disposition of a Partnership property shall be allocated as follows: 99% of such net loss shall be allocated to the Limited Partners and 1% of such net loss shall be allocated to the General Partners. The Agreement provides that distributions of Operating Cash Flow, as defined in the Agreement, shall be distributed 99% to the Limited Partners and 1% to the General Partners. The receipt by the General Partners of such 1% of Operating Cash Flow shall be subordinated to the receipt by the Limited Partners of Operating Cash Flow equal to a 10% per annum, cumulative, non-compounded return on their Adjusted Investment (the "Preferential Distribution"), as such term is defined in the Agreement. In the event the full Preferential Distribution is not made in any year (herein referred to as a "Preferential Distribution Deficiency") and Operating Cash Flow is available in following years in excess of the Preferential Distribution for said year, then the Limited Partners shall be paid such excess Operating Cash Flow until they have been paid any unpaid Preferential Distribution Deficiency from prior years. Net Sale Proceeds, as defined in the Agreement, received by the Partnership shall be distributed as follows: (a) first, to the Limited Partners until such time as the Limited Partners have been paid an amount equal to the amount of their Adjusted Investment; (b) second, to the Limited Partners until such time as the Limited Partners have been paid an amount equal to any unpaid Preferential Distribution Deficiency; and (c) third, 85% of any remaining Net Sale Proceeds to the Limited Partners, and the remaining 15% of the Net Sale Proceeds to the General Partners. At March 31, 2008, the Preferential Distribution Deficiency exceeded the potential liquidation value of the remaining Partnership assets. (3) MORTGAGE NOTE PAYABLE On November 17, 2005, the Partnership paid off the prior loan (in the amount of $3,910,423) secured by Raleigh Springs Marketplace using the proceeds from a new first mortgage loan ("First Mortgage") in the amount of $4,400,000. This loan required payments of interest only and had a twelve-month maturity. In 2006, the Partnership extended the loan for an additional twelve-month period (with the payment of an additional fee of $11,000). Interest was payable based on the LIBOR rate plus 2.25%. The Partnership was also required to purchase interest rate caps with one year maturities at a cost of $5,000 and $2,500 at December 15, 2006 and 2005, respectively. The interest rate caps fixed the LIBOR rate at 6.45%. The notional amount of the interest rate cap agreements were identical to the notional amount of the mortgage loan. The fair market value of the interest rate cap agreements at December 31, 2006 was $0. The First Mortgage also required the establishment of a $300,000 escrow that could be used for the payment of tenant improvements and leasing commissions. The First Mortgage lender also required the Partnership to create a special purpose entity, Brauvin Raleigh L.L.C., which is fully owned by the Partnership. The Partnership transferred its ownership interest in the Raleigh Springs Marketplace to the special purpose entity. The Partnership was also required to enter into a limited guaranty agreement. Primarily, under the terms of the guaranty agreement the Partnership will not be personally liable unless the Partnership or Brauvin Raleigh LLC commit fraud by misapplication or misappropriation of cash receipts. Raleigh Springs Marketplace served as collateral under the respective nonrecourse debt obligation. On December 31, 2007, the Partnership paid off the balance of the note with proceeds from the sale of Raleigh Springs Marketplace. (4) TRANSACTIONS WITH AFFILIATES Fees and other expenses incurred or payable to the General Partners or their affiliates for the three months ended March 31, 2008 and 2007 were as follows: 2008 2007 -------- ------- Management fees $ 924 $13,684 Reimbursable office expenses 29,475 29,475 As of March 31, 2008, the Partnership had made all payments to affiliates except for $797 for management fees. BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) ITEM 2. Management's Discussion and Analysis or Plan of Operation. General Certain statements in this Quarterly Report that are not historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Without limiting the foregoing, words such as "anticipates," "expects," "intends," "plans" and similar expressions are intended to identify forward-looking statements. These statements are subject to a number of risks and uncertainties. Actual results could differ materially from those projected in the forward-looking statements. The Partnership undertakes no obligation to update these forward-looking statements to reflect future events or circumstances. Liquidity and Capital Resources The Partnership's mortgage notes payable was satisfied through the sale of Raleigh Springs Marketplace. In 1999, the Partnership solicited and received the votes of the Limited Partners to approve a sale of all the Partnership's properties, either on an individual or group basis, and to subsequently liquidate the Partnership. The solicitation, which was approved by the Limited Partners in the third quarter of 1999, stated that the Partnership's properties may be sold individually or in any combination provided that the total sales price for the properties included in the transaction equals or exceeds 70% of the aggregate appraised value for such properties, which valuation was conducted by an independent third party appraisal firm. The Partnership sold the Raleigh Springs Marketplace under a closed bid process which included identification of target buyers with proven financing ability and performance of certain evaluations of the property, such as environmental testing. Potential buyers were requested to sign confidentiality agreements to safeguard the Partnership's confidential proprietary information. The General Partners determined that each bid must have been all cash, completely unconditional and accompanied by a substantial deposit. On March 10, 2008, the Partnership made a distribution to Unit Holders in the amount of $1,000,000. Property Status Raleigh Springs Marketplace On December 28, 2007, Brauvin Raleigh, L.L.C., an affiliate of the Partnership, sold the property for a gross sales price of $7,125,000, which was the Partnership's last property investment. The Partnership received net sales proceeds, after repayment of the First Mortgage, of approximately $2,423,000 and recognized a gain on the sale of approximately $797,000. Under the terms of the transaction, the Partnership was able to bill and retain the 2007 common area maintenance and real estate tax reimbursements. Accordingly, in early 2008, the Partnership billed the Raleigh Springs Marketplace tenants approximately $18,000 for reimbursements. The Partnership is endeavoring to collect the remaining receivables from the tenants. The Partnership was required to provide certain representations and warranties to the purchaser for six months from the date of sale. The Partnership anticipates making a final distribution to Unit Holders soon after the expiration of the representations and warranties in third quarter of 2008. Results of Operations Other than the billing and collection of tenant expense reimbursements and the collection of past due rents associated with Partnership's prior ownership of Raleigh Springs Marketplace, there were no significant property operations during the three months ended March 31, 2008. Results of Operations - Three months ended March 31, 2008 and 2007 (Liquidation Basis) As a result of the Partnership's adoption of the liquidation basis of accounting, and in accordance with generally accepted accounting principles, the Partnership's financial statements for periods subsequent to July 12, 1999 have been prepared on a liquidation basis. The Partnership generated an excess of expenses over revenue of $14,000 for the period ended March 31, 2008 as compared to an excess of revenue over expenses of $11,000 for the same period in 2007. The $25,000 decrease in the excess of revenue over expenses is primarily a result of a decrease in total income of $190,000 offset by a decrease in total expenses of $165,000. Total income for the period ended March 31, 2008 was $25,000 as compared to $215,000 for the same period in 2007. The $190,000 decrease in total revenue was primarily a result of decreases in rental income and other tenant expense reimbursements associated with the sale of Raleigh Springs Marketplace in December 2007. Interest income increased approximately $11,000. Total expenses for the period ended March 31, 2008 were $39,000 as compared to $204,000 for the same period in 2007. The $165,000 decrease in total expense was due to a decrease in interest expense of $84,000, a decrease in real estate tax of $30,000, a decrease in general and administrative expense of $23,000, a decrease in management fees of $13,000 and a decrease in operating expense of $10,000. The decline in expenses is associated with the sale of Raleigh Springs Marketplace in December 2007. Results of Operations - Three months ended March 31, 2007 and 2006 (Liquidation Basis) As a result of the Partnership's adoption of the liquidation basis of accounting, and in accordance with generally accepted accounting principles, the Partnership's financial statements for periods subsequent to July 12, 1999 have been prepared on a liquidation basis. The Partnership generated an excess of revenue over expenses of $11,000 for the period ended March 31, 2007 as compared to an excess of expenses over revenue of $45,000 for the same period in 2006. The $57,000 increase in an excess of revenue over expenses is primarily a result of a decrease in total expenses of $57,000 offset by a decrease in total income of $9,000. The Partnership's share of Sabal Palms net loss decreased $9,000. Total income for the period ended March 31, 2007 was $215,000 as compared to $225,000 for the same period in 2006. The $10,000 decrease in total revenue was primarily a result of decreases in other tenant expense reimbursements and interest income of approximately $4,000 and $3,000, respectively. Total expenses for the period ended March 31, 2007 were $204,000 as compared to $261,000 for the same period in 2006. The $57,000 decrease in total expense was due to a decrease in general and administrative expense of $63,000, a decrease in operating expense of $2,000, and a decrease in real estate tax of $2,000. Partially offsetting these decreases was an increase in interest expense of $10,000. ITEM 3. Controls and Procedures Controls and Procedures As of March 31, 2008, the Partnership's Chief Executive Officer and Chief Financial Officer of the Corporate General Partner, have concluded that the Partnership's controls and procedures (as defined in Rules 240.13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) were effective based on the evaluation of these controls and procedures required by paragraph (b) of Rule 13a-15 or Rule 15d-15 under the Securities Exchange Act of 1934, as amended. Management's Report on Internal Control over Financial Reporting The Partnership's management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). The Partnership's management assessed the effectiveness of the internal control over financial reporting as of March 31, 2008. In making this assessment, the Partnership's management used the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). The Partnership's management has concluded that, as of March 31, 2008, the internal control over financial reporting is effective based on these criteria. Further, there were no changes in the Partnership's controls over financial reporting during the quarter ended March 31, 2008, that have materially affected, or are reasonably likely to materially affect, the internal controls over financial reporting. The Partnership's management, including the Chief Executive Officer and Chief Financial Officer of the Corporate General Partner, does not expect that the disclosure controls and procedures of the internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Changes in Internal Controls There have not been any significant changes in the Partnership's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation. We are not aware of any significant deficiencies or material weaknesses, therefore no corrective actions were taken. BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) PART II - OTHER INFORMATION ITEM 1. Legal Proceedings. None. ITEM 2. Changes in Securities. None. ITEM 3. Defaults Upon Senior Securities. None. ITEM 4. Submission of Matters to a Vote of Security Holders. None. ITEM 5. Other Information. None. ITEM 6. Exhibits and Reports On Form 8-K. Exhibit 99. Certification of Officers BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BY: Brauvin Ventures, Inc. Corporate General Partner of Brauvin Real Estate Fund L.P. 4 BY: /s/ Jerome J. Brault Jerome J. Brault Chairman of the Board of Directors and President DATE: May 15, 2008 BY: /s/ Thomas E. Murphy Thomas E. Murphy Chief Financial Officer and Treasurer DATE: May 15, 2008 CERTIFICATION FOR SARBANES-OXLEY SECTION 302(A) CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER OF BRAUVIN VENTURES, INC. CORPORATE GENERAL PARTNER OF BRAUVIN REAL ESTATE FUND L.P. 4 I, Jerome J. Brault certify that: 1. I have reviewed this quarterly report on Form 10-QSB of Brauvin Real Estate Fund L.P. 4; 2. Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the consolidated financial condition, results of operations and statement of changes in net assets in liquidation of the small business issuer as of, and for, the periods presented in this report; 4. The small business issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)for the small business issue and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and c) Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and 5. The small business issuer's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of small business issuer's board of directors (or persons performing the equivalent function): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to aversely affect the small business issuer's ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal controls over financial reporting. BY: Brauvin Ventures, Inc. Corporate General Partner of Brauvin Real Estate Fund L.P. 4 BY: /s/ Jerome J. Brault Jerome J. Brault Chairman of the Board of Directors and President DATE: May 15, 2008 CERTIFICATION FOR SARBANES-OXLEY SECTION 302(A) CERTIFICATE OF THE CHIEF FINANCIAL OFFICER OF BRAUVIN VENTURES, INC. CORPORATE GENERAL PARTNER OF BRAUVIN REAL ESTATE FUND L.P. 4 I, Thomas E. Murphy certify that: 1. I have reviewed this quarterly report on Form 10-QSB of Brauvin Real Estate Fund L.P 4.; 2. Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the consolidated financial condition, results of operations and statement of changes in net assets in liquidation of the small business issuer as of, and for, the periods presented in this report; 4. The small business issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)for the small business issue and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and c) Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and 5. The small business issuer's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of small business issuer's board of directors (or persons performing the equivalent function): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to aversely affect the small business issuer's ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal controls over financial reporting. BY: Brauvin Ventures, Inc. Corporate General Partner of Brauvin Real Estate Fund L.P. 4 BY: /s/ Thomas E. Murphy Thomas E. Murphy Chief Financial Officer and Treasurer DATE: May 15, 2008 Exhibit 99 SECTION 906 CERTIFICATION The following statement is provided by the undersigned to accompany the Quarterly Report on Form 10-QSB for the quarter ended March 31, 2008, pursuant to Section 906 of the Sarbanes- Oxley Act of 2002 and shall not be deemed filed pursuant to any provisions of the Securities Exchange Act of 1934 or any other securities law: Each of the undersigned certifies that the foregoing Report on Form 10-QSB fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m) and that the information contained in the Form 10-QSB fairly presents, in all material respects, the financial condition and results of operations of Brauvin Real Estate Fund L.P. 4. BY: Brauvin Ventures, Inc. Corporate General Partner of Brauvin Real Estate Fund L.P. 4 BY: /s/ Jerome J. Brault Jerome J. Brault Chairman of the Board of Directors and President DATE: May 15, 2008 BY: /s/ Thomas E. Murphy Thomas E. Murphy Chief Financial Officer and Treasurer DATE: May 15, 2008 -----END PRIVACY-ENHANCED MESSAGE-----