-----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, MDkSm2Gw3tnZSfs5UFbK1wWDKMVepR8PrXWQKs9ZPOKgYvTqvFiS4XbqUweeshle A+Uoyu9AZdNWddLEDQe7LQ== 0000751570-98-000005.txt : 19980401 0000751570-98-000005.hdr.sgml : 19980401 ACCESSION NUMBER: 0000751570-98-000005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980130 ITEM INFORMATION: FILED AS OF DATE: 19980331 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KRUPP REALTY LTD PARTNERSHIP VII CENTRAL INDEX KEY: 0000751570 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 042842924 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-14377 FILM NUMBER: 98582508 BUSINESS ADDRESS: STREET 1: 470 ATLANTIC AVE CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 6174232233 MAIL ADDRESS: STREET 1: C/O BERKSHIRE REALTY AFFILIATES STREET 2: 470 ATLANTIC AVE CITY: BOSTON STATE: MA ZIP: 02210 8-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) January 30, 1998 Krupp Realty Limited Partnership-VII Massachusetts 0-14377 04-2842924 (State or other jurisdiction of (Commission (IRS employer incorporation or organization) file number) identification no.) 470 Atlantic Avenue, Boston, Massachusetts 02210 (Address of principal executive offices) (Zip Code) (617) 423-2233 (Registrant's telephone number, including area code) Item 2. Acquisition or Disposition of Assets Disposition of Nora Corners Shopping Center On December 2, 1997, Berkshire Realty Enterprise Limited Partnership, an affiliate of the General Partners, as agent for Krupp Realty Limited Partnership-VII (the "Partnership"), entered into an Agreement of Sale to sell Nora Corners, a shopping center containing 89,432 leasable square feet, located in Indianapolis, Indiana, to Kejack, Inc. and its permitted assigns, which are unaffiliated third parties. The property was included in a package with thirteen other properties owned by affiliates of the General Partners. The total selling price of the fourteen properties was $138,000,000, of which the Partnership received $6,604,300, less the assumption of the first mortgage note payable of $4,084,037 and its share of the closing costs. The transaction was consummated on January 30, 1998. Item 7. Financial Statements, Proforma Financial Information and Exhibits (a) Financial Statements of Business Acquired Response: Not applicable (b) Pro Forma Financial Information On January 30, 1998, Krupp Realty Limited Partnership-VII (the "Partnership") sold Nora Corners Shopping Center ("Nora") to Kejack, Inc. and its permitted assigns, which are unaffiliated third parties. Nora was included in a package with thirteen other properties owned by affiliates of the General Partners. The total selling price of the fourteen properties was $138,000,000, of which the Partnership received $6,604,300 for the sale of Nora, less the assumption of the first mortgage note payable of $4,084,037 and its share of its closing costs. The Partnership has presented in this Form 8-K, a Pro Forma Consolidated Balance Sheet at September 30, 1997 and Pro Forma Consolidated Statements of Operations for the nine months ended September 30, 1997 and for the year ended December 31, 1996. See Note 1 to the Pro Forma Consolidated Financial Statements for further discussion of this matter. KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES PRO FORMA CONSOLIDATED BALANCE SHEET September 30, 1997 (unaudited)
ASSETS Actual at Pro Forma September 30, Pro Forma September 30, 1997 Adjustments 1997 (Note 1) (Note 1) (Note 1) Real estate assets: Multi-family apartment complex, less accumulated depreciation of $11,142,891 $ 8,655,516 $ 8,655,516 Retail centers, less accumulated depreciation of $3,970,537 5,748,589 (5,748,589) - Total real estate assets 14,404,105 (5,748,589) 8,655,516 Cash and cash equivalents 2,707,271 (18,919) 2,688,352 Cash restricted for tenant security deposits 28,857 28,857 Prepaid expenses and other assets 588,951 (236,685) 352,266 Deferred expenses, net of accumulated amortization of $120,533 301,992 (86,947) 215,045 Total assets $ 18,031,176$ (6,091,140)11,940,036 LIABILITIES AND PARTNERS' EQUITY Liabilities: Mortgage notes payable $ 14,539,741$ (4,098,920)$10,440,821 Accrued expenses and other liabilities 713,939 (141,207) 572,732 Total liabilities 15,253,680 (4,240,127) 11,013,553 Partners' equity 2,777,496 (1,851,013) 926,483 Total liabilities and Partners' equity $ 18,031,176$ (6,091,140)$11,940,036
See accompanying note to pro forma consolidated financial statements. KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS For the Nine Months Ended September 30, 1997 (unaudited)
As Reported for the Nine Months Ended Pro Forma for the September 30, Pro FormaNine Months Ended 1997 Adjustments September 30, 1997 (Note 1) (Note 1) (Note 1) Revenue: Rental $ 3,518,036 $ (775,248) $ 2,742,788 Interest income 51,359 (4,198) 47,161 Total revenue 3,569,395 (779,446) 2,789,949 Expenses: Operating 857,714 (52,492) 805,222 Maintenance 269,575 (50,441) 219,134 Real estate taxes 346,431 (85,811) 260,620 General and administrative 104,726 104,726 Management fees 153,972 (31,947) 122,025 Depreciation and amortization 1,045,461 (303,501) 741,960 Interest 849,510 (278,294) 571,216 Total expenses 3,627,389 (802,486) 2,824,903 Net income (loss) $ (57,994) $ 23,040 $ (34,954)
See accompanying note to pro forma consolidated financial statements. KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 (unaudited)
As Reported for Pro Forma for the Year Ended Pro Forma the Year Ended December 31, 1996 Adjustments December 31, 1996 (Note 1) (Note 1) (Note 1) Revenue: Rental $ 4,614,568 $ (1,055,361)$ 3,559,207 Interest income 73,947 (4,392) 69,555 Total revenue 4,688,515 (1,059,753) 3,628,762 Expenses: Operating 1,123,377 (64,434) 1,058,943 Maintenance 366,051 (78,224) 287,827 Real estate taxes 466,876 (126,787) 340,089 General and administrative 98,84 78,847 Management fees 193,484 (42,716) 150,768 Depreciation and amortization 1,325,765 (403,153) 922,612 Interest 1,103,602 (375,347) 728,255 Total expenses 4,678,002 1,090,661) 3,587,341 Net income $ 10,513 $ 30,908 $ 41,421
See accompanying note to pro forma consolidated financial statements. KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES NOTE TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (1)Basis of Presentation The Pro Forma Consolidated Balance Sheet at September 30, 1997 is based on the historical Consolidated Balance Sheet of the Partnership as reported on Form 10-Q for the quarter ended September 30, 1997. The Pro Forma adjustment represents an adjustment to the Partnership's financial statements to show the effect of the sale. The Pro Forma Consolidated Balance Sheet at September 30, 1997 reflects the balance sheet as if the sale had occurred prior to September 30, 1997. The Pro Forma Consolidated Statement of Operations for the nine months ended September 30, 1997 is based on the historical Consolidated Statement of Operations of the Partnership as reported on Form 10-Q for the nine months ended September 30, 1997. The Pro Forma Consolidated Statement of Operations for the year ended December 31, 1996 is based on the historical Consolidated Statement of Operations for the Partnership as presented in the annual report on Form 10-K for the year ended December 31, 1996. The Pro Forma adjustments represent Nora's net income for the respective period presented. The Pro Forma Consolidated Statements of Operations for the nine months ended September 30, 1997 and for the year ended December 31, 1996 reflect the results of operations of the Partnership as if the Partnership had sold Nora prior to January 1, 1996. The Pro Forma Consolidated Statements of Operations do not reflect any gain or loss which may be recognized by the Partnership as a result of the sale. (c)Exhibits 1.Agreement of Sale dated December 2, 1997 between Berkshire Realty Enterprise Limited Partnership, agent for Krupp Realty Limited Partnership-VII, and Kejack, Inc. and its permitted assigns [Exhibit 1 to Registrant's Report on Form 8-K dated February 2, 1998 (File No. 0-14377)].* 2.First Amendment to Agreement of Sale dated December 12, 1997 between Berkshire Realty Enterprise Limited Partnership, agent for Krupp Realty Limited Partnership-VII, and Kejack Inc. and its permitted assigns [Exhibit 2 to Registrant's Report on Form 8-K dated February 2, 1998 (File No. 0-14377)].* 3.Second Amendment to Agreement of Sale dated December 14, 1997 between Berkshire Realty Enterprise Limited Partnership, agent for Krupp Realty Limited Partnership-VII, and Kejack, Inc. and its permitted assigns [Exhibit 3 to Registrant's Report on Form 8-K dated February 2, 1998 (File No. 0-14377)].* 4.Side letter dated December 17, 1997 from William S. Gee on behalf of Kejack, Inc. and its permitted assigns to Eli Rubenstein, Esq. on behalf of Berkshire Realty Enterprises Limited Partnership, agent for Krupp Realty Limited Partnership-VII [Exhibit 4 to Registrant's Report on Form 8-K dated February 2, 1998 (File No. 0-14377)].* 5.Side letter dated January 6, 1998 from William S. Gee on behalf of Kejack, Inc. and its permitted assigns to Eli Rubenstein, Esq. on behalf of Berkshire Realty Enterprise Limited Partnership, agent for Krupp Realty Limited Partnership-VII [Exhibit 5 to Registrant's Report on Form 8-K dated February 2, 1998 (File No. 0-14377)].* * Incorporated by reference. SIGNATURE 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. Krupp Realty Limited Partnership-VII (Registrant) BY: /s/Wayne H. Zarozny Wayne H. Zarozny Treasurer and Chief Accounting Officer of the Krupp Corporation, a General Partner. DATE: March 31, 1998 -----END PRIVACY-ENHANCED MESSAGE-----